Financial Results for Q3 Fiscal Year Ending March 31, 2013 January 31, 2013 NEC Corporation (http://www.nec.com/en/global/ir) Index I. Financial Results for Q3, FY13/3 II. Financial Forecasts for FY13/3 l Financial Results for Q3, FY13/3 (Appendix) l Financial Forecasts for FY13/3 (Appendix) l Reference (Financial data) ※ As stated in the July 6, 2012 announcement, “NEC Revises Business Segments,” NEC has revised its business segments from the first quarter of the fiscal year ending March 31, 2013. Figures for the corresponding period of the previous fiscal year have been adjusted in accordance with the new segments Page 2 © NEC Corporation 2013 I. Financial Results for Q3, FY13/3 Q3 Results (3months/9months) Summary of Financial Results for Q3 ▐ Net income for Q3 : In the black due to improvement in operating income (Billions of Yen) Q3(October to December) Net Sales Operating Income/Loss FY12/3 FY13/3 Actual Actual Actual Actual 2,112.2 2,169.8 2.7% -8.2 24.4 32.6 -1.4 71.8 73.2 - -11.6 21.9 - -86.5 - 33.5 51.8 - 90.0 11.5 - 13.1 -64.7 © NEC Corporation 2013 73.8 2.4% -97.5 0.5% -60.8 3.3% -22.0 3.0% 3.5 - -73.9 3.4% 109.0 0.5% -92.7 (Ref): Average exchange rates for Q3(Oct-Dec) of FY13/3 1$= ¥79.35, 1€= ¥102.17 Average exchange rates for 9 months of FY13/3 1$= ¥79.87, 1€= ¥102.10 Page 4 YoY 7.9% % to Net Sales Free Cash Flow FY13/3 722.0 % to Net Sales Net Income/ Loss FY12/3 669.0 % to Net Sales Ordinary Income/Loss YoY 9 Months(April to December) -28.0 Restructuring Progress ▐ Q3 Result: 13.0B Yen 9 months: 26.0B Yen (in line with its forecasts) (Billions of Yen) Item Business Restructuring Streamline Corporate staffs Reduction of External Resources Immediate Cost Reductions Total Q3 Result (9 months) 8.0 (11.0) FY13/3 (forecasts) Segment IT Solutions 20.0 Carrier Network 1.0 (2.0) 4.0 (13.0) 13.0 (26.0) 4.0 Social Infrastructure Personal Solutions 16.0 Others/Eliminations Unclassifiable exp 40.0 Total Q3 Result (9 months) 5.0 (10.0) 1.0 (3.0) 1.0 (2.0) 4.0 (8.0) 2.0 (3.0) 13.0 (26.0) FY13/3 (forecasts) 14.0 5.0 3.0 13.0 5.0 40.0 *Forecasts (FY13/3) as of Jan 31, 2013 Page 5 © NEC Corporation 2013 Q3 Results Results for Q3 by Segment (3months/9months) (Billions of Yen) Net Sales IT Solutions Operating Income/Loss Q3(October to December) FY12/3 FY13/3 YoY Actual Actual 256.3 280.9 9.6% -3.6 7.4 11.0 % to Net Sales Carrier Network Social Infrastructure Personal Solutions Net Sales Operating Income % to Net Sales Net Sales Operating Income % to Net Sales Net Sales Operating Income/Loss Operating Income % to Net Sales Eliminations/ Unclass ifiable expens es Total 2.6% 152.6 16.5 5.8% 70.0 1.3 142.0 -3.0 59.0 2.4 4.0% 19.6% 4.6 5.3% 8.2 210.3 7.4 496.3 0.5 8.1% - 8.9% 5.9 1.4% 168.2 17.4 2.9% 7.3% 6.6 6.2% 452.1 6.4 187.5 5.4 9.3% 20.0 9.4% 225.6 14.1 0.1% - 6.5% 2.1 3.5% 464.7 43.5 3.5% 3.5% 55.1 4.4 425.2 23.5 5.5% 7.1% 149.6 5.2 - 7.7% 8.3 10.8% 83.7 5.9 1.9% - - 10.3% 12.0 10.4% Operating Loss -13.6 -15.0 -1.4 -35.4 -39.8 -4.4 Net Sales 669.0 -8.2 722.0 24.4 7.9% 32.6 2,112.2 -1.4 2,169.8 71.8 2.7% 73.2 Operating Income/Loss % to Net Sales Page 6 141.7 8.2 % to Net Sales Net Sales Others - 9 Months(April to December) FY12/3 FY13/3 YoY Actual Actual 792.9 859.3 8.4% -2.8 30.2 33.0 - 3.4% © NEC Corporation 2013 - 3.3% Q3 Results IT Solutions Business (3months) Billions of Yen (YoY) (Billions of Yen) +1.1% 280.9 256.3 253.5 r IT Services Solid sales in manufacturing, and retail & services sectors Consolidation of CSG Limited's Technology Solutions business YoY +9.6% Sales ▐ Sales 280.9 (+9.6%) +11.2% +2.8% IT Services 171.0 175.8 Operating income 2.6% ratio 195.4 - 1.4% - 3.4% Platform 82.5 Operating Income/Loss -8.6 r Platform Increase due to large-scale projects ▐ Operating Income/Loss 7.4 (+11.0) +6.3% -2.5% 80.5 85.5 -3.6 7.4 r Improve due to sales increase and the effect of restructuring <Restructuring Effect> +5.0 Page 7 FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> © NEC Corporation 2013 Q3 Results Carrier Network Business (3months) Billions of Yen (YoY) (Billions of Yen) ▐ Sales 152.6 (+7.7%) r Japan: Stable sales YoY Sales 152.6 141.7 136.0 +7.7% +4.2% Operating income ratio 10.8% ▐ Operating Income 16.5 (+8.3) 5.8% 3.5% Operating Income r Overseas: Increase in services & management, and submarine cable systems 16.5 r Increase from sales expansion and cost reductions 8.2 4.7 <Restructuring Effect> +1.0 Page 8 FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> © NEC Corporation 2013 Q3 Results Social Infrastructure Business (3months) Billions of Yen (YoY) (Billions of Yen) ▐ Sales 83.7 (+19.6%) r Strong sales in aerospace and defense systems YoY 83.7 Sales 70.0 66.6 +19.6% 7.1% ▐ Operating Income 5.9 (+4.6) r Increase from sales expansion and cost reductions +5.1% Operating income ratio 1.9% 0.7% Operating Income 0.4 Page 9 5.9 1.3 <Restructuring Effect> +１.0 FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> © NEC Corporation 2013 Q3 Results Personal Solutions Business (3months) Billions of Yen (YoY) (Billions of Yen) Sales ▐ Sales 149.6 (+5.3%) r Mobile Terminals: Increase in sales of mobile handsets and mobile sales business of NEC Mobiling, Ltd. YoY 193.0 +5.3% -26.4% Mobile Terminals 149.6 142.0 80.3 -26.0% Operating income ratio 59.4 - 0.8% 74.5 3.5% ▐ Operating Income/Loss 5.2 (+8.2) - 2.1% 112.7 PCs and Others s PCs and Others: Decline due to impact from special demands in the previous year +25.4% -9.1% Operating Income -1.6 82.6 -26.7% 75.1 5.2 -3.0 r Improve due to increase in sales of mobile terminals and the effect of restructuring in the mobile handset business <Restructuring Effect> +4.0 Page 10 FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> © NEC Corporation 2013 Q3 Results Others (3months) Billions of Yen (YoY) (Billions of Yen) YoY ▐ Sales 55.1 (-6.5%) s Decrease in energy business Sales 71.6 ▐ Operating Income 4.4 59.0 Operating income ratio 3.1% -6.5% 8.1% 4.0% 4.4 Operating Income 2.2 r Increase due to the effect of restructuring despite sales decrease 55.1 -17.5% 2.4 <Restructuring Effect> +2.0 * Page 11 (+2.1) FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> *include the restructuring effect in Eliminations/Unclassifiable expenses © NEC Corporation 2013 Q3 Results Net Income/Loss Change (Oct-Dec/Year on Year) (3months) (Billions of Yen) FY12/3 Q3 <Oct-Dec> FY13/3 Q3 <Oct-Dec> -86.5 3.5 IT Solutions Carrier Network Personal Solutions Social Infrastructure +11.0 +8.3 +8.2 +4.6 Others +56.5 Improvement in operating income/loss +32.6 <Restructuring Effect> +13.0 Page 12 Revision of deferred tax assets (FY12/3) +74.0 Provision of allowance for doubtful accounts for subsidiaries and affiliates -3.8 Improvement in non-operating income/loss +0.8 © NEC Corporation 2013 II. Financial Forecasts for FY13/3 Forecasts FY13/3 Summary of Financial Forecasts for FY13/3 (Billions of Yen) Q4(January to March) FY12/3 FY13/3 Actual Forecasts Full Year YoY FY12/3 FY13/3 Actual Forecasts YoY Difference from Oct 26 Net Sales 924.6 980.2 6.0% 3,036.8 3,150.0 3.7% 0.0 Operating Income 75.2 28.2 -47.0 73.7 100.0 26.3 0.0 28.0 0.0 130.3 0.0 -34.2 0.0 % to Net Sales Ordinary Income % to Net Sales Net Income/ Loss 8.1% 64.0 Free Cash Flow 18.2 6.9% -12.7 % to Net Sales 2.4% -45.8 1.9% 8.5 - 98.8 2.9% 42.1 -110.3 0.9% 92.7 70.0 1.4% 21.3 34.2 2.2% 20.0 - -6.1 3.2% 0.6% 0.0 Note: Assumed exchange rates for FY13/3 1$=¥75, 1€=¥100 *Forecasts as of Jan 31, 2013 Page 14 © NEC Corporation 2013 Forecasts FY13/3 Financial Forecasts for FY13/3 by Segment (Billions of Yen) Net Sales IT Solutions Operating Income % to Net Sales Net Sales Carrier Network Operating Income Social Infrastructure Operating Income Personal Solutions % to Net Sales Net Sales % to Net Sales Net Sales Operating Income % to Net Sales Net Sales Others Operating Income/Loss % to Net Sales Eliminations / Unclas sifiable expenses Total Q4(January to March) FY12/3 FY13/3 YoY Actual Forecasts 396.3 395.7 - 0.1% 47.6 41.8 -5.8 12.0% 177.6 27.1 15.3% 120.1 8.7 7.3% 164.7 0.6 0.3% 66.0 5.8 10.6% 230.3 9.5 3.8% 29.7% -17.6 4.1% 149.4 4.9 3.3% 8.7% 330.4 16.2 4.9% - 4.1% 3.1 661.0 1.0 - 29.1% -7.2 253.5 11.1 2.3% 46.8 -1.4 602.7 50.6 8.4% 24.3% -3.8 157.9 3.6 FY12/3 Actual 1,189.2 44.8 0.2% - 4.4% Full Year FY13/3 Forecasts 1,255.0 72.0 YoY Difference from Oct 26 5.5% 27.2 0.0 0.0 15.3% 2.4 0.0 0.0 13.5% 2.8 0.0 0.0 - 7.7% 9.0 0.0 0.0 - 15.2% 4.9 0.0 0.0 5.7% 695.0 53.0 7.6% 375.0 19.0 5.1% 610.0 10.0 1.6% 215.0 16.0 7.4% Operating Loss -14.6 -30.2 -15.6 -50.0 -70.0 -20.0 0.0 Net Sales 924.6 75.2 980.2 28.2 6.0% -47.0 3,036.8 73.7 3,150.0 100.0 3.7% 26.3 0.0 0.0 Operating Income % to Net Sales 8.1% 2.9% 2.4% 3.2% *Forecasts as of Jan 31, 2013 Page 15 © NEC Corporation 2013 Forecasts FY13/3 IT Solutions Business Billions of Yen (YoY) (Billions of Yen) ▐ Sales 1,255.0 (+5.5%) r IT Services Increase in manufacturing, retail & services and telecom sectors YoY +5.5% +0.8% Sales 1,180.0 1,255.0 1,189.2 r Platform Increase due to large-scale projects +4.7% +1.6% IT Services 804.2 Operating income 5.7% ratio 855.0 816.9 ▐ Operating Income 3.8% 2.6% 72.0 Operating Income Platform 375.8 30.3 FY11/3 44.8 -0.9% 372.4 FY12/3 72.0 (+27.2) r Increase due to sales expansion and the effect of restructuring +7.4% 400.0 <Restructuring Effect> +14.0 FY13/3 Forecasts(*) *Forecasts as of Jan 31, 2013 Page 16 © NEC Corporation 2013 Forecasts FY13/3 Carrier Network Business Billions of Yen (YoY) (Billions of Yen) ▐ Sales 695.0 (+15.3%) r Japan: Expect stable sales growth YoY r Overseas: Increase due to sales expansion in services & management and submarine cable systems 695.0 Sales 602.7 577.2 +15.3% +4.4% Operating income ratio 6.6% Operating Income 8.4% 50.6 ▐ Operating Income 53.0 (+2.4) 7.6% 53.0 r Expect an increase from sales expansion and cost reductions despite making an investment for future growth 37.9 <Restructuring Effect> +5.0 FY11/3 FY12/3 FY13/3 Forecasts(*) *Forecasts as of Jan 31, 2013 Page 17 © NEC Corporation 2013 Forecasts FY13/3 Social Infrastructure Business Billions of Yen (YoY) (Billions of Yen) ▐ Sales 375.0 (+13.5%) r Increase in aerospace and defense systems YoY 375.0 Sales w Social systems will be the same level as the previous year due to the sales increase in fire and disaster prevention systems offset by a decrease in demand for broadcasting systems 330.4 318.8 +13.5% +3.6% Operating income ratio 4.9% 5.1% 4.6% ▐ Operating Income 19.0 (+2.8) Operating Income 14.6 16.2 19.0 r Improve due to sales increase, cost reductions and the effect of restructuring despite making an investment for future growth <Restructuring Effect> +3.0 FY11/3 FY12/3 FY13/3 Forecasts(*) *Forecasts as of Jan 31, 2013 Page 18 © NEC Corporation 2013 Forecasts FY13/3 Personal Solutions Business Billions of Yen (YoY) (Billions of Yen) Sales ▐ Sales 610.0 (-7.7%) s Mobile Terminals: Focus on further sales expansion activities in Japan despite sales decrease YoY 766.5 -13.8% -7.7% 661.0 Mobile Terminals 303.5 610.0 s PCs and Others: Decrease due to the deconsolidation of consumer PCs -0.8% -1.7% Operating income 301.0 ratio -12.8% -22.2% Operating Income/ 360.0 Loss -1.9 ▐ Operating Income/Loss 10.0 (+9.0) 0.2% - 0.2% PCs and 463.0 Others 296.0 1.6% 314.0 10.0 r Improve due to the effect of restructuring in the mobile terminal business despite sales decrease 1.0 <Restructuring Effect> +13.0 FY11/3 FY12/3 FY13/3 Forecasts(*) *Forecasts as of Jan 31, 2013 Page 19 © NEC Corporation 2013 Forecasts FY13/3 Others Billions of Yen (YoY) (Billions of Yen) ▐ Sales 215.0 (-15.2%) s Decrease due to deconsolidation of LCD module business, and decrease in electronic component business and energy business YoY Sales 273.0 253.5 215.0 -7.1% Operating income ratio 3.4% Operating Income 9.2 -15.2% 7.4% ▐ Operating Income 16.0 (+4.9) r Improve due to the effect of restructuring 4.4% 16.0 11.1 <Restructuring Effect> +5.0 ** FY11/3 FY12/3 FY13/3 Forecasts(*) **include the restructuring effect in Eliminations/Unclassifiable expenses *Forecasts as of Jan 31, 2013 Page 20 © NEC Corporation 2013 Forecasts FY13/3 Net Income/Loss Change (Year on Year) (Billions of Yen) Restructuring expenses (FY12/3) Revision of deferred tax assets (FY12/3) +40.5 +70.0 Others +102.3 FY12/3 -110.3 FY13/3 Forecast(*) 20.0 Improvement in non-operating income/loss +1.7 Improvement in operating income +26.3 IT Solutions +27.2 Personal Solutions +9.0 Eliminations/unclassifiable expenses -20.0 Page 21 © NEC Corporation 2013 *Forecasts as of Jan 31, 2013 Business Portfolio Restructuring Progress ▐ NEC TOKIN (a consolidated subsidiary) l Execute capital and business alliance with KEMET Corporation of the U.S. in Q4 FY13/3 (Already completed Antitrust investigations) ⇒ To be an affiliated company accounted for by the equity method from Q4 FY13/3 ▐ Renesas Electronics (an affiliated company accounted for by the equity method) l Decided to issue new shares through a third-party allotment to the Innovation Network Corporation of Japan (INCJ) and 8 companies ⇒ Renesas Electronics will no longer be an affiliated company accounted for by the equity method after the execution of their capital increase Page 22 © NEC Corporation 2013 NEC’s Activities to Enhance Social Infrastructure ▐ INTERPOL and NEC sign partnership agreement to enhance cyber security ▐ Execute a Program to Upgrade and Operate X-Band Satellite Communications Functions ▐ Won Submarine cable project in Taiwan ▐ Awarded next core banking system of Sumitomo Mitsui Banking Corporation Alliance with INTERPOL in cyber security Page 23 Satellite assembly plant in Fuchu Rendering of large space chamber © NEC Corporation 2013 Toward future growth Resume dividend payments in FY13/3 4 Yen year-end dividend (forecast) Formulate mid-term management plan (will be announced this spring) *Forecasts as of Jan 31, 2013 Page 24 © NEC Corporation 2013 Page 2011 25 © NEC Corporation © NEC Corporation 2013 Financial Results for Q3,FY13/3 (Appendix) Q3 Results Q3 Results by Segment (3months) (Billions of Yen) Net Sales Operating Income/Loss 24.4 IT Solutions 7.4 720.7 IT Solutions 669.0 253.5 256.3 Carrier Network 136.0 Social Infrastructure 66.6 141.7 70.0 Personal Solutions 193.0 Others 71.6 Page 27 722.0 142.0 59.0 16.5 280.9 -8.2 Carrier Network Social Infrastructure Others 152.6 -13.5 4.7 0.4 2.2 - 8.6 IT Solutions 83.7 149.6 - 10.6 Eliminations/ Unclassifiable expenses 55.1 8.2 5.2 2.4 - 3.6 - 3.0 4.4 1.3 - 1.6 Personal Solutions 5.9 - 15.0 - 13.6 FY11/3 FY12/3 FY13/3 FY11/3 FY12/3 FY13/3 <Oct-Dec> <Oct-Dec> <Oct-Dec> <Oct-Dec> <Oct-Dec> <Oct-Dec> © NEC Corporation 2013 Personal Solutions Q3 Results (3months) Summary of Financial Results for Q3 by Segment Operating Income Net Sales IT Solutions Others Carrier Network Personal Solutions 24.4 16.5 21% Sales for Q3 FY13/3 722.0 IT Solutions 7.4 Social Infrastructure Social Infrastructure 5.9 Personal Solutions Others 5.2 11% Carrier Network 21% Page 28 Operating Income for Q3, FY13/3 39% 8% (Billions of Yen) © NEC Corporation 2013 4.4 Q3 Results (3months) Sales Change (Oct-Dec/Year on Year) (Billions of Yen) Increase in aerospace and defense systems Solid sales in mobile handset and NEC Mobiling, Ltd. Social Infrastructure Personal Solutions +13.8 (+19.6%) +7.5 (+5.3%) Steady sales in Japan Increase in services & management, and submarine cable systems 722.0 Carrier Network +10.9 (+7.7%) FY12/3 Q3 <Oct-Dec> Others -3.9 Decrease in energy business 669.0 IT Solutions +24.7 (+9.6%) Stable business in IT Services and Platform Page 29 FY13/3 Q3 <Oct-Dec> © NEC Corporation 2013 Q3 Results (3months) Operating Income/Loss Change (Oct-Dec/Year on Year) <Restructuring Effect> +4.0 (Billions of Yen) Restructuring effect <Restructuring Effect> +2.0 Sales Increase and the effect of restructuring in mobile handsets FY13/3 Q3 <Oct-Dec> Others +2.1 Personal Solutions <Restructuring Effect> +1.0 24.4 +8.2 Sales Increase and cost reductions Eliminations/ <Restructuring Effect> Social Infrastructure Unclassifiable +1.0 +4.6 Increase from sales expansion expenses and cost reductions -1.4 Carrier Network Increase in +8.3 investment costs FY12/3 Q3 <Oct-Dec> <Restructuring Effect> +13.0 -8.2 IT Solutions +11.0 <Restructuring Effect> +5.0 Sales expansion and the effect of restructuring Page 30 © NEC Corporation 2013 Q3 Results Results for 9 months by Segment (9months) (Billions of yen) Net Sales Operating Income/Loss 71.8 IT Solutions 2,189.9 IT Solutions 801.3 2,112.2 792.9 2,169.8 30.2 859.3 43.5 -1.4 Carrier Network 397.4 Social Infrastructure 204.5 425.2 464.7 210.3 225.6 Personal Solutions 585.1 496.3 452.1 Others 201.7 187.5 168.2 Page 31 Carrier Network Social Infrastructure IT Solutions -12.4 23.5 12.2 1.34.54.4 - 6.6 0.57.45.4 - 2.8 - 28.1 - 35.4 Eliminations/ Unclassifiable expenses 14.1 6.4 17.4 - 39.8 FY11/3 FY12/3 FY13/3 FY11/3 FY12/3 FY13/3 <Apr-Dec> <Apr-Dec> <Apr-Dec> <Apr-Dec> <Apr-Dec> <Apr-Dec> © NEC Corporation 2013 Personal Solutions Others Q3 Results (9months) Summary of Financial Results for 9 Months by Segment Operating Income Net Sales IT Solutions Others Operating Income for 9 Months, FY13/3 40% 8% Personal Solutions 71.8 Carrier Network 21% 43.5 Sales for 9 Months, FY13/3 IT Solutions 30.2 2,169.8 Others Social Infrastructure Social Infrastructure 14.1 10% Carrier Network 21% Page 32 (Billions of Yen) © NEC Corporation 2013 17.4 Personal Solutions 6.4 Q3 Results Sales Change (Apr-Dec/Year on Year) (9months) (Billions of Yen) Increase in aerospace and defense systems Steady sales in Japan Increase in services & management, and submarine cable systems Deconsolidation of consumer PC business Decrease in mobile terminal shipments Social Infrastructure Personal Solutions +15.3 (+7.3%) -44.3 (-8.9%) FY13/3 9months <Apr-Dec> Carrier Network +39.5 (+9.3%) 2,169.8 FY12/3 9months <Apr-Dec> Others -19.3 2,112.2 Decrease due to deconsolidation of LCD module business and decrease in electronic component business IT Solutions +66.3 (+8.4%) Stable business in IT Services and Platform Page 33 © NEC Corporation 2013 Operating Income/Loss Change (Apr-Dec/Year on Year) +2.0 Sale of LCD patents Sales increase Cost reductions <Restructuring Effect> +3.0 Sales increase <Restructuring Effect> +10.0 Sales increase Effect of restructuring FY12/3 9months <Apr-Dec> <Restructuring Effect> +3.0 Social Infrastructure +6.6 Carrier Network +20.0 IT Solutions +33.0 Page 34 (9months) (Billions of Yen) <Restructuring Effect> -1.4 Q3 Results Others +12.0 Personal Solutions +5.9 FY13/3 9months <Apr-Dec> 71.8 Eliminations/ Unclassifiable expenses -4.4 Increase in investment costs <Restructuring Effect> +26.0 Effect of restructuring in mobile handset <Restructuring Effect> +8.0 © NEC Corporation 2013 Q3 Results Net Income/Loss Change (Apr-Dec/Year on Year) (9months) (Billions of Yen) FY13/3 9months <Apr-Dec> FY12/3 9months <Apr-Dec> 11.5 -97.5 Improvement in non-operating income/loss +0.5 Others +35.2 Revision of deferred tax assets (FY12/3) +74.0 Gain on sales of subsidiaries and affiliates' stocks -14.0 Improvement in operating income/loss +73.2 <Restructuring Effect> +26.0 Page 35 IT Solutions Carrier Network Others © NEC Corporation 2013 +33.0 +20.0 +12.0 Q3 Results (3months/9months) Overseas Sales (Billions of Yen) Q3(October to December) FY12/3 FY13/3 YoY Actual Actual Asia Europe Others Total Net Sales 33.0 37.1 To consolidated total sales （％） 4.9% 5.1% Net Sales 26.8 21.5 To consolidated total sales （％） 4.0% 3.0% Net Sales 49.1 62.5 To consolidated total sales （％） 7.3% 8.7% 108.9 121.1 16.3% 16.8% Net Sales To consolidated total sales （％） * Sales Page 36 9 Months(April to December) FY12/3 FY13/3 YoY Actual Actual 12.6% - 19.9% 27.3% 11.2% 112.7 116.2 5.3% 5.4% 82.6 62.2 3.9% 2.9% 167.5 176.3 7.9% 8.1% 362.8 354.7 17.2% 16.3% 3.1% - 24.7% 5.2% Major countries and regions China,Chinese Taipei,India, Singapore and Indonesia UK,France,Netherlands, Germany,Italy and Spain U.S.A - 2.2% are classified into country or region based on the locations of customers © NEC Corporation 2013 Q3 Results Financial Position Data (Billions of Yen) End of Mar End of Dec 2012 2012 End of Dec 2011 2,557.6 2,545.8 -11.8 2,457.9 Net Assets 777.6 790.2 12.5 762.3 Interest-bearing debt 692.7 741.3 48.6 734.9 Shareholder's Equity 657.0 669.8 12.9 647.1 Total Assets Equity ratio(%) D/E ratio 25.7% (times) Net D/E ratio (times) Balance of cash and cash equivalents Page 37 Difference from Mar 2012 26.3% 0.6pt 26.3% 1.05 1.11 - 0.06pt 1.14 0.67 0.81 - 0.14pt 0.84 251.8 201.5 © NEC Corporation 2013 -50.3 192.7 Q3 Results <Ref.> Balance Sheets (At the end of Dec, 2012) (Billions of Yen) <Compared to the end of Mar, 2012> Total Assets 2,545.8 (-11.8) Compared to end of Mar, 2012 Current Assets 1,483.5 Liabilities 1,755.6 -30.9 -24.4 Collection of notes and accounts receivable Non-current Assets 1,062.2 Decrease in notes and accounts payable-trade and provision for business structure improvement Net Assets +19.1 +12.5 Business acquisitions 790.2 Recording net income Page 38 © NEC Corporation 2013 Financial Forecasts for FY13/3 (Appendix) Forecasts FY13/3 Financial Forecasts for FY13/3 by Segment (Billions of yen) Net Sales Operating Income/Loss 100.0 3,115.4 IT Solutions 1,180.0 Carrier Network 577.2 Social Infrastructure 318.8 3,036.8 3,150.0 73.7 57.8 1,189.2 602.7 330.4 1,255.0 695.0 IT Solutions 30.3 Carrier Network 37.9 Social Infrastructure Others 375.0 Personal Solutions Personal Solutions 766.5 661.0 610.0 Others 273.0 253.5 215.0 FY11/3 FY12/3 FY13/3 Forecasts(*) 14.6 9.2 - 1.9 - 32.2 Eliminations/ Unclassifiable expenses FY11/3 72.0 44.8 53.0 50.6 16.2 1.0 11.1 - 50.0 FY12/3 19.0 10.0 16.0 - 70.0 FY13/3 Forecasts(*) *Forecasts as of Jan 31, 2013 Page 40 © NEC Corporation 2013 Forecasts FY13/3 Summary of Financial Forecasts for FY13/3 by Segment (Billions of Yen) Net Sales Operating Income IT Solutions Others Operating Income Forecast for FY13/3 40% 7% IT Solutions Personal Solutions 72.0 19% 53.0 Sales Forecast for FY13/3 Social Infrastructure Personal 19.0 Solutions 3,150.0 Social Infrastructure 12% Carrier Network 100.0 Others 16.0 10.0 Carrier Network 22% *Forecasts as of Jan 31, 2013 Page 41 © NEC Corporation 2013 Forecasts FY13/3 Sales Change (Year on Year) (Billions of Yen) Increase in aerospace and defense systems Deconsolidation of consumer PC business Increase mainly in global business such as services & management and submarine cable systems Social Infrastructure Personal Solutions +44.6 (+13.5%) -51.0 (-7.7%) FY13/3 Carrier Network Forecast (*) +92.3 (+15.3%) 3,150.0 Others -38.5 FY12/3 3,036.8 IT Solutions +65.8 (+5.5%) Decrease due to deconsolidation of LCD module business and decrease in electronic component business Increase both IT services and Platform *Forecasts as of Jan 31, 2013 Page 42 © NEC Corporation 2013 Forecasts FY13/3 Operating Income/Loss Change (Year on Year) (Billions of Yen) <Restructuring Effect> +13.0 Effect of restructuring in mobile handset business Improve due to the effect of restructuring <Restructuring Effect> +5.0 Expect to increase from sales expansion despite making an investment for future growth Carrier Network +2.4 Personal Solutions +9.0 Others +4.9 <Restructuring Effect> +5.0 FY13/3 Forecast (*) 100.0 Eliminations/ Social Unclassifiable Infrastructure expenses -20.0 +2.8 FY12/3 73.7 Increase in investment costs IT Solutions +27.2 <Restructuring Effect> +40.0 <Restructuring Effect> +3.0 <Restructuring Effect> +14.0 Sales expansion and the effect of restructuring Page 43 Sales increase, cost reductions and effect of restructuring despite making an investment for future growth © NEC Corporation 2013 *Forecasts as of Jan 31, 2013 Capital Expenditure, Depreciation and R&D expenses Forecasts FY13/3 (Billions of Yen) FY12/3 FY13/3 Actual Forecasts YoY Capial Expenditure 42.0 50.0 19.1% Depreciation 53.3 55.0 3.2% 162.0 170.0 5.0% 5.3% 5.4% R&D expenses To consolidated total sales （％） * Forecasts as of Jan 31, 2013 (Note: Unchanged from forecasts announced on Oct 26) Page 44 © NEC Corporation 2013 Reference (Financial data) Net Sales, Operating Income/Loss (Billions of Yen) 8.1% 7.6% Operating income ratio 3.0% 6.8% YoY 3.4% 3.4% - 1.9% - 3.5% -16.2% Net Sales -8.4% -14.2% Overseas Sales （Overseas Sales Ratio） Sales in Japan 117.5 (16.3%) 114.2 (17.1%) +7.9% -5.6% 118.7 (12.8%) 669.0 138.8 (17.9%) 816.3 136.2 (16.7%) 631.5 108.9 (16.3%) 115.1 (17.2%) 97.4 (15.4%) 722.0 121.1 (16.8%) 75.2 70.2 Operating Income/ Loss 24.3 55.2 26.2 24.4 -19.4 -13.5 -23.2 -7.9 -8.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 46 774.1 669.1 +5.4% 924.6 -7.2% 118.8 (12.8%) 720.7 128.8 (16.1%) -3.4% +0.2% 801.6 667.5 -0.1% 925.5 -12.7% - 1.2% - 1.2% - 2.9% FY12/3 © NEC Corporation 2013 FY13/3 Sales, Operating Income/Loss (IT Solutions) Operating income ratio (Billions of Yen) 12.0% 9.7% YoY 8.7% 4.5% 4.0% 2.6% - 1.4% - 3.4% - 4.2% - 5.4% 396.3 378.7 306.5 Net Sales 241.3 IT Services Platform 161.2 80.0 Operating Income/ Loss -10.1 +1.1% +5.0% 256.3 249.2 36.9 +9.6% 280.9 225.9 47.6 205.2 171.0 329.2 278.4 209.7 175.8 157.5 195.4 165.9 28.6 13.6 12.1 96.7 82.5 -8.6 116.5 79.9 -12.8 94.1 80.5 -3.6 117.9 83.3 -5.8 103.3 85.5 7.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 47 299.3 237.4 262.2 +10.0% -2.3% -1.6% 253.5 - 2.3% +4.6% FY12/3 © NEC Corporation 2013 FY13/3 Sales, Operating Income/Loss (Carrier Network) (Billions of Yen) Operating income ratio 15.3% 14.3% 8.7% YoY 7.9% 8.3% 9.2% 10.8% 5.8% 3.5% 1.9% 179.8 - 4.9% 149.1 Net Sales 177.6 170.7 156.0 141.7 136.0 141.3 -1.2% 127.5 152.6 +9.4% +4.6% 112.3 +7.7% +4.2% +10.9% +13.5% 27.1 25.7 Operating Income/ 13.0 Loss -5.5 12.9 4.7 8.2 15.7 16.5 2.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 48 11.2 FY12/3 © NEC Corporation 2013 FY13/3 Sales, Operating Income/Loss (Social Infrastructure) (Billions of Yen) Operating income ratio YoY 8.8% 4.6% 7.1% 2.4% 0.7% 0.6% 8.2% 7.3% 6.9% 114.3 1.9% 0.7% 120.1 +5.1% 81.5 79.5 Net Sales 82.7 83.7 +1.4% +19.6% 70.0 66.6 58.8 58.4 +2.6% 59.2 +5.1% +0.7% +0.8% 10.1 Operating Income 3.7 0.4 0.3 6.8 1.4 1.3 0.4 5.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 49 8.7 5.7 FY12/3 © NEC Corporation 2013 FY13/3 Sales, Operating Income/Loss (Personal Solutions) (Billions of Yen) Operating income ratio - 0.2% YoY 1.6% - 0.8% 0.7% 2.4% 1.2% - 1.8% 3.5% 0.3% - 2.1% - 2.2% Net Sales -5.2% 193.5 Mobile Terminals 198.5 76.3 79.1 193.0 -14.0% 183.5 181.5 170.8 -0.4% -9.2% +5.3% -26.4% 164.7 67.8 132.5 79.5 86.8 77.0 75.3 59.4 PCs and Others Operating Income/ Loss 122.3 114.4 112.7 104.0 3.3 -0.4 -1.6 -3.2 84.0 1.3 2.1 74.5 57.4 89.4 82.6 -3.0 93.0 75.1 0.6 4.2 5.2 75.1 -3.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 50 113.7 170.0 149.6 142.0 80.3 -27.8% FY12/3 © NEC Corporation 2013 FY13/3 Sales, Operating Income/Loss (Others) (Billions of Yen) 22.5% YoY Operating income ratio 6.7% 5.7% 4.0% 3.1% - 2.1% - 2.8% 71.6 68.1 62.0 - 2.8% -2.3% -0.1% Net Sales 8.1% 8.7% 6.5% -7.5% -4.2% -17.5% 71.3 66.5 61.9 66.0 -6.5% -20.4% 63.7 59.0 55.1 49.3 14.4 Operating Income/ Loss 4.8 3.9 2.2 -1.7 2.4 -1.3 4.4 -1.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> FY11/3 Page 51 5.8 4.3 FY12/3 © NEC Corporation 2013 FY13/3 Exchange Rate (Yen) 125 Euro/Yen Exchange Rate (Actual) 120 Assumed Exchange Rate 115 Average Exchange Rate ¥102.10 110 105 100 95 90 95 Dollar/Yen Exchange Rate (Actual) 90 Assumed Exchange Rate Average Exchange Rate ¥79.87 85 80 75 70 4/2 Page 52 4/30 5/31 6/29 7/31 8/31 © NEC Corporation 2013 9/28 10/31 11/30 12/31 Stock Price (Yen) 10,500 190 NEC the Nikkei Stock Apr 27 : FY12/3 Earnings 180 May 30 : Announced acquisition of Australian ICT company CSG Limited's Technology Solutions business 10,000 Jun 6 : Reach Agreement with GS Yuasa on Supplying Lithium-Ion Battery Components 9,500 170 Dec 5 : R&D Briefing 160 150 Oct 26 : Q2 Earnings 140 9,000 130 120 Jun 22 : Ordinary General Meeting of Shareholders 8,500 Oct 19 : Financial Forecast Revisions 110 100 Aug 28 : Announced the results of early retirement program Jul 10 : Smart Energy Business Briefing Jul 31 : Q1 Earnings 8,000 90 4/2 Page 53 4/27 5/31 6/29 7/31 8/31 © NEC Corporation 2013 9/28 10/31 11/30 12/28 CAUTIONARY STATEMENTS: This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). 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