Presentation

Financial Results for 1H
Fiscal Year Ending March 31, 2012
October 27, 2011
NEC Corporation
(http://www.nec.co.jp/ir/en)
Index
I.
Financial Results for 1H, FY12/3
II. Financial Forecasts for FY12/3
III. Toward an information society friendly to humans
and the earth
Page 2
© NEC Corporation 2011
I. Financial Results for 1H, FY12/3
Summary of Financial Results for 1H, FY12/3
1H Results
▐ Secured operating income, achieved company forecasts
(Billions of Yen)
Q2 (Jul-Sep)
FY11/3
FY12/3
Actual
Actual
1H (Apr-Sep)
YoY
FY11/3
FY12/3
Actual
Actual
YoY
Difference
from Jul 28
Net Sales
801.6
774.1
-3.4%
1,469.2
1,443.2
-1.8%
-46.8
Operating Income
24.3
26.2
1.9
1.1
6.8
5.7
6.8
% to Net Sales
3.0%
3.4%
0.1%
0.5%
Ordinary Income/Loss
18.2
19.2
11.9
9.6
% to Net Sales
2.3%
2.5%
Net Income/ Loss
16.1
18.7
16.1
4.0
% to Net Sales
2.0%
2.4%
Free Cash Flow
Note:
Page 4
-60.6
-7.3
1.1
-22.3
-10.4
-
2.6
-27.0
-11.0
-
53.2
-102.8
Average exchange rates for 1H, FY12/3: 1$= ¥80.64, 1€= ¥115.20
(Assumed exchange rates for FY12/3 as of July 28, 2011: 1$ = ¥80, 1€= ¥110)
© NEC Corporation 2011
-
-
9.2
112.0
1H Results
1H Results by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
-37.7
1,653.7
1,469.2
IT Services
Platform
166.2
308.6
Social
Infrastructure
129.7
Others
362.3
309.6
FY10/3
1H
Page 5
1,443.2
377.3
Carrier
Network
Personal
Solutions
1,490.0
371.0
370.0
176.8
185.0
174.0
271.0
305.0
294.2
362.7
IT Services
Carrier
Network
Social Infrastructure
Personal Solutions
Platform
Others
137.9
140.0
140.3
392.1
370.0
354.3
120.5
120.0
117.8
FY11/3
1H
Forecasts
as of Jul 28
FY12/3
1H
Eliminations/
Unclassifiable
expenses
9.6
1.1
12.4
2.7
8.2
3.5
7.0
4.0
2.9
-1.5
-13.5
0.0
6.8
3.0
4.01.5
15.3
12.0
6.1
4.0
3.4
3.03.0 2.0 -2.2 3.5
-17.8
-26.5
-22.3
-37.6
-19.5
FY10/3
1H
© NEC Corporation 2011
FY11/3
1H
Forecasts
as of Jul 28
FY12/3
1H
1H Results
1H Results by Segment
(Billions of Yen)
Net Sales
IT Services
Operating Income
% to Net Sales
Net Sales
Platform
Operating Income/Loss
% to Net Sales
Carrier
Network
Net Sales
Operating Income
% to Net Sales
Net Sales
Social
Infrastructure
Operating Income
Personal
Solutions
Operating Income
% to Net Sales
Net Sales
% to Net Sales
Net Sales
Others
Operating Income
% to Net Sales
Eliminations/
Unclassifiable expenses
Total
4.4%
96.7
2.9
3.0%
154.2
13.0
8.4%
79.5
3.7
4.6%
198.5
3.3
1.6%
63.0
4.2
6.6%
YoY
- 2.2%
1.1
5.0%
94.1
3.2
1H　<Apr-Sep>
FY11/3
FY12/3
Actual
Actual
371.0
362.7
3.5
3.0
1.0%
- 2.7%
0.3
176.8
-1.5
3.4%
162.3
13.5
271.0
7.0
2.6%
2.0
137.9
4.0
8.3%
81.5
5.7
2.6%
6.9%
170.8
2.1
2.9%
- 14.0%
-1.2
392.1
2.9
- 4.4%
-0.1
120.5
3.0
1.2%
60.2
4.0
0.7%
6.7%
2.5%
- 2.2%
-0.6
-7.3
-1.0
- 1.6%
-0.7
-11.0
-3.7
8.6%
8.3
-10.8
3.3
1.8%
2.1
0.3
2.1
- 9.6%
0.5
-15.7
0.4
- 2.3%
0.5
-2.2
1.5
0.8%
174.0
-2.2
-
5.3%
0.6
YoY
Difference
from
Jul 28
-
294.2
15.3
5.2%
140.3
6.1
4.3%
354.3
3.4
1.0%
117.8
3.5
3.0%
Operating Loss
-11.9
-12.6
-0.8
-17.8
-22.3
-4.5
4.2
Net Sales
801.6
24.3
774.1
26.2
- 3.4%
1.9
1,469.2
1.1
1,443.2
6.8
- 1.8%
5.7
-46.8
6.8
Operating Income
% to Net Sales
Page 6
Q2　<Jul-Sep>
FY11/3
FY12/3
Actual
Actual
209.7
205.2
9.2
10.3
3.0%
3.4%
© NEC Corporation 2011
0.1%
0.5%
1H FY12/3 Challenges and Accomplishments
1H Results
▐ Attained operating income and achieved company
forecasts. However, challenges remain with 2H
centric profit structure.
Accomplishments
ü Carrier Network increased in sales and profits
Ø Secure demand from data traffic upsurge
Challenges
ü IT Services fell short of forecasts
Ø Expand sales and orders, and improve profitability
Challenges
ü Personal Solutions secured profits
ü Expand sales of smartphones (mobile terminals)
Page 7
© NEC Corporation 2011
ll. Financial Forecasts for FY12/3
Full Year
Forecasts
Summary of Financial Forecasts for FY12/3
▐ Continue to promote One NEC “outward and inward efforts”
l Realize operating income target* of 90B yen, and net income target* of 15B
yen through operation with speed
(Billions of Yen)
2H (Oct-Mar)
Net Sales
Operating Income
% to Net Sales
Ordinary Income
% to Net Sales
Net Income/ Loss
% to Net Sales
Free Cash Flow
FY11/3
FY12/3
Actual
Forecasts
Full Year
YoY
FY12/3
Actual
Forecasts
YoY
Difference
from Jul 28
1,646.3
1,806.8
9.8%
3,115.4
3,250.0
4.3%
-50.0
56.7
83.2
26.5
57.8
90.0
32.2
0.0
3.4%
4.6%
1.9%
2.8%
22.3
65.4
0.0
55.0
55.0
0.0
1.4%
3.6%
0.0%
1.7%
14.5
26.0
27.5
0.0
0.9%
1.4%
112.6
0.0
-9.8
-9.2
43.1
11.5
-12.5
15.0
-
0.6
Note: Assumed exchange rates for 2H, FY12/3 1$=¥75, 1€=¥105
Page 9
FY11/3
© NEC Corporation 2011
-112.6
0.5%
0.0
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Financial Forecasts for FY12/3 by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
3,583.1
IT Services
Platform
Carrier
Network
Social
Infrastructure
Personal
Solutions
Others
3,115.4
90.0
3,250.0
50.9
866.3
373.7
627.4
316.6
737.7
661.4
FY10/3
804.2
375.8
605.4
318.8
810.0
IT Services
390.0
750.0
330.0
53.2
Carrier
Network
31.3
Social
Infrastructure
21.7
Personal
Solutions
18.9
-1.7
Platform
766.5
730.0
Others
244.7
240.0
Eliminations/
Unclassifiable
expenses
FY11/3
FY12/3
Forecasts(*)
-44.9
57.8
21.4
8.9
33.0
14.0
57.0
40.7
14.6
7.3 -1.9
-33.2
15.0
15.0
6.0
-50.0
-27.5
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Page 10
© NEC Corporation 2011
Full Year
Forecasts
Financial Forecasts for 2H, Full year FY12/3 by Segment
(Billions of Yen)
Net Sales
IT Services
Operating Income
% to Net Sales
Net Sales
Platform
Operating Income
% 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/
Unclassifiable expens es
Operating Loss
Net Sales
Total
4.1%
199.0
10.4
334.5
33.8
10.1%
374.5
-4.8
Operating Income
% to Net Sales
-
3.4%
36.3%
7.9
605.4
40.7
4.8%
-1.7
318.8
14.6
0.3%
16.4
766.5
-1.9
-1.6%
-1.8
244.7
7.3
2.0%
3.0%
3.8%
5.1
-10.0
0.0
23.9%
16.3
-10.0
0.0
3.5%
0.4
5.0
0.0
-4.8%
16.9
-35.0
0.0
-1.9%
-1.3
0.0
0.0
4.5%
730.0
15.0
-
0.0
0.0
7.6%
330.0
15.0
4.6%
0.7%
11.6
3.6%
750.0
57.0
6.7%
YoY
Difference
from
Jul 28
4.1%
390.0
14.0
2.4%
3.1%
122.2
2.5
Full Year
FY12/3
Forecasts
810.0
33.0
2.7%
4.7%
375.7
11.6
124.2
4.3
375.8
8.9
9.1%
189.7
8.9
5.8%
8.6%
5.8
7.5%
455.8
41.7
180.9
10.6
3.2%
12.2
FY11/3
Actual
804.2
21.4
YoY
6.7%
216.0
16.2
5.2%
% to Net Sales
Net Sales
Others
2H　<Oct-Mar>
FY11/3
FY12/3
Actual
Forecasts
433.2
447.3
17.9
30.0
2.1%
240.0
6.0
2.5%
-15.3
-27.7
-12.3
-33.2
-50.0
-16.8
0.0
1,646.3
56.7
1,806.8
83.2
9.8%
26.5
3,115.4
57.8
3,250.0
90.0
4.3%
32.2
-50.0
0.0
3.4%
4.6%
1.9%
2.8%
*Forecasts as of Oct 27, 2011
Page 11
© NEC Corporation 2011
2H Key Measures to Achieve Company Forecasts
Full Year
Forecasts
▐ Minimize impact from stagnant macroenvironment and super strong yen
ü Improve profitability of IT Services
Key Focus
ü Reinforce profit structure of Carrier Network
▐ Capture demand from smartphone boom and
hikes in data traffic
ü Expand sales of Carrier Network
ü Reinforce domestic business and accelerate
overseas business for smartphones Key Focus
Page 12
© NEC Corporation 2011
Full Year
Forecasts
Key Measures in IT Services Business
Outward efforts
Inward efforts
＜Order/Sales Expansion＞
＜Profitability Improvement＞
l Focus on high demand areas such as
local government, medical and
manufacturing sectors
l Order for 1H : 103% (YoY)
l Control loss-making projects by
reducing risks from planning phase
l Decrease loss in 2H from
unprofitable projects by half (YoY)
106%
Loss from unprofitable projects
Manufacturing
Retail
Services
Central and Local Government,
Public, Medical
101%
2H
99%
94%
95%
Q1
FY11/3
Q2
2H
99%
Finance
Q3
Telecom
Media
Q4
Q1
FY12/3
2H
1H
1H
FY10/3
FY11/3
1H
Q2
FY12/3 Forecasts(*)
*Forecasts as of Oct 27, 2011
Page 13
© NEC Corporation 2011
Full Year
Forecasts
Key Measures in Platform Business
Outward efforts
Inward efforts
＜ Sales Expansion ＞
＜Profitability Improvement ＞
l Capture demand for data centers
responsive to the widespread of
cloud computing
l Promote value-added proposals such
as virtualization, ECO, BCP
l Roll out new servers and storages
with superior power-saving
performance
l Promote cost reduction by utilizing
common platform and offshoring
l Enhance profitability by improving
investment and cost efficiency
Operating income
ratio
- 2.4%
- 5.5%
Q1
FY11/3
Page 14
10.7%
3.0%
© NEC Corporation 2011
Q2
Q3
3.4%
- 6.8%
Q4
Q1
FY12/3
Q2
Full Year
Forecasts
Key Measures in Carrier Network Business
Outward efforts
Inward efforts
<Sales Expansion, New Customers>
<Profitability Improvement>
l Domestic mobile traffic upsurge
by double in one year*
l Increase overseas procurement
ratio
iPASOLINK
FY11/3
Overseas
Japan
Jun 2010 Sept 2010
Mar 2011
Jun 2011
+30%
Overseas
海外
Japan
Increase by 10+ points
(Terabyte)
l To launch production of PASOLINK in
India
l Expansion of Services and
Management Business
<Sales>
FY12/3(Forecasts)
<Overseas Customers>
OSS/BSS
Carrier Cloud
Approx. 60 to 100+
FY11/3
FY12/3
(Forecasts*)
FY11/3
FY12/3
(Forecasts*)
* Monthly Traffic volume by 5 Japanese wireless telecom carriers (Source: Ministry of Internal Affairs and Communications August 2011)
Page 15
© NEC Corporation 2011
Chennai, India
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Key Measures in Personal Solutions Business
Outward efforts
Inward efforts
＜Global, New Business Expansion＞
＜Resilient Structure＞
l Expand smartphone business by
shipping to 3 operators in Japan and
expand in overseas market
<Smartphone shipment ratio >
l Enhance efficiency in development
costs for mobile terminals
< Ratio of development expenses to sales >
60%
(forecast)
50%
(Actual)
Mobile phone shipments
Overseas
Overseas
Japan
Smartphone
new model
Japan
Smartphone
new model
10 pt
Improvement
4
2
1H
(Previous
forecast)
1H
(Actual)
2H
2H
(previous (Forecasts*)
forecast)
FY11/3
1H
FY11/3
2H
FY12/3
1H
FY12/3
2H（Forecasts*）
*Forecasts as of Oct 27, 2011
Page 16
© NEC Corporation 2011
lll. Toward an information society friendly to
humans and the earth
An information society friendly to humans and the earth
▐ Realize a “smart” society by utilizing our strengths in
ICT and energy technologies
Network
Solutions
Devices
Page 18
© NEC Corporation 2011
Energy
Solutions
Public Safety Business
▐ Established Public Safety Business Promotion Office
l Promote public safety business as one of key strategies
for global business expansion
• Focus on developing new solutions and expanding global
business by harnessing each business,
regional headquarters and overseas affiliates
AFIS for police
Page 19
National ID
© NEC Corporation 2011
Border Control
Solutions
Healthcare Business
▐ e-Pathologist Cancer Diagnosis Assistance System
l NEC and Royal Philips Electronics agreed to jointly develop and
market highly integrated digital pathology solutions
l Jointly evaluated e-Pathologist system with SRL, Inc., the largest
laboratory test center in Japan, and the Massachusetts General
Hospital in the U.S.
Page 20
© NEC Corporation 2011
Devices
Cloud Devices
▐ Provide services through cloud devices, connecting
everything and everyone
Smartphones
Tablet
Devices
Sensors
Digital
Signage
Wearable
Computers
Page 21
© NEC Corporation 2011
Network
Programmable Flow
▐ Introduced to Nippon Express and Genesis Hosting Solutions
of U.S.
l Reduced operating cost by presenting network structure more
simple, virtualized and visible
Programmable
Flow Controllers
Programmable
Flow Switch
Centralized
control and
configuration
Grand Prix
Page 22
© NEC Corporation 2011
Network
End to End Solutions
▐ M2M Service “ＣＯＮＮＥＸＩＶＥ”
l A world that connects with anything,
and anything connects with everything
FY11/3
<CONNEXIVE Agricultural ICT Services>
Field work journal
Agricultural ICT cloud
2011/3/30 Work contents
n Work
Field of MR. A
Location
畑
Contents
Watered
Remarks
Advice
Less fertilizer next time
3G
·
Field work journal
(Audio input, images)
Field work journal
sensing data
3G
or
LAN
· Journal
Sales
FY12/3 FY13/3
(Forecasts) (Plan)
Sensing information
Field work journal
Temperature,
insolation, etc.
Location
Contents
Remarks
Field
Fertiliz
er
Work contents
· Sensing data
· Image data
Image data
User
Agricultural sensor
Provide advice to users based on the
received images and journal
Advice via the telephone
Advisor
*Forecasts as of Oct 27, 2011
Page 23
© NEC Corporation 2011
Energy
Smart Energy Business
▐ Diverging from electrodes/ power storage to service business with cloud
Multiple power storage
system development
(Yokohama, Japan)
Home Energy
Management System
on sale
BEMS
Tokyo Univ, AIST*,
Smart grid concept
HEMS
Power Storage
System
ENEL ( Italy)
Next-generation smart grid system
Power
Storage
Home-use power storage
system on sale
Smart city
projects in Brazil
and China
Power storage and
rechargeable system field
trails (Yokohama, Japan)
Recharge
Electrodes
Infrastructure
for recharge
Batteries
＊AIST: the National Institute Advanced Industrial Science and Technology
Page 24
© NEC Corporation 2011
Realize an information society friendly to humans and the earth
Medical
Field
Water
•Monitor quality, exposure and
Electricity
•Visualize and estimate
electricity power usage
•Control optimal electricity
power supply
abuse
•Predict flood, drought
•Advance at-home/ remote
medical care
•Preventive care
Page 25
•Advance distant learning
•Provide optimal learning
tools
uProvide dynamic service optimal for customers
uEnhance efficiency by visualizing real-time information
uOffer security against disasters and quick recovery
Agriculture
•Estimate harvesting
•Advice optimal dose of
water/fertilizer
Education
Environment
Trains
Traffic
•Charge by time period
•Predict traffic jam
•Detect defective train parts
•Promote optimal operation by
multiple operators
© NEC Corporation 2011
•Analyze environment and
natural disaster
•Explore underground
resources
Page 26
© NEC Corporation 2011
Financial Results for 1H, FY12/3 (Appendix)
Summary of Financial Results for 1H by Segment
1H Results
(Billions of Yen)
Net Sales
Operating Income/Loss
IT Services
Others
25%
8%
Carrier
Network
Personal
Solutions
15.3
25%
Sales for 1H
FY12/3
3.0
3.4
Platform
12%
Social
Infrastructure
10%
Page 28
Carrier Network
20%
© NEC Corporation 2011
¥ 6.8 Billion
Social
Infrastructure
6.1 Personal
Solutions
IT Services
¥1,443.2 Billion
Operating Income
for 1H, FY12/3
Platform
-2.2
Others
3.5
Key Points of 1H, FY12/3 Results by Segment (Year on Year)
IT Services
1H Results
l Decrease in retail and telecom, while local government and medical sectors were
solid
l Remain flat due to cost reductions despite sales decrease
Platform
l Decrease from hardware despite solid software and enterprise network
l Remain flat from cost efficiency while sales decrease
Carrier
Network
l Increase from data traffic hikes in domestic market and submarine cable systems
l Higher profits from sales increase in domestic business and submarine cable
systems
Social
Infrastructure
l Increase in social systems, despite decrease in aerospace and defense systems
l Higher profits from sales increase and lower costs
Personal
Solutions
l Decrease due to deconsolidation of consumer PC business, despite increase in
mobile terminal business
l Remain flat with improvement in mobile terminal business
Others
l Decrease due to deconsolidation of LCD module business, despite increase in
battery business
l Remain flat from cost efficiency while sales decrease
Note: First bullets refer to changes in sales, second bullets refer to changes in operating income/loss
Page 29
© NEC Corporation 2011
1H Results
Sales Change (Year on Year)
Increase in social systems,
despite decrease in aerospace
and defense systems
Increase from data
traffic hikes in
domestic market and
submarine cable
systems
Social Infrastructure
+2.5 (+1.8%)
Carrier Network
+23.2 (+8.6%)
FY11/3 1H
(Billions of Yen)
Decrease due to
deconsolidation of
consumer PC business,
despite increase in mobile
terminal business
Personal Solutions
-37.8 (-9.6%)
1,469.2
Decrease due to
deconsolidation of LCD
module business, despite
increase in battery
business
IT Services
-8.3 (-2.2%)
Decrease in retail and
telecom, while local
government and medical
sectors were solid
Platform
-2.8 (-1.6%)
Decrease from hardware
despite solid software
and enterprise network
Page 30
© NEC Corporation 2011
Others
-2.8
FY12/3 1H
1,443.2
1H Results
Sales Change (from Forecasts as of Jul 28)
Some projects
delay to 2H while
falling short of
forecast
FY12/3 1H Forecasts
as of Jul 28
1,490.0
Some projects of
domestic fixed-line
business delay to 2H
IT Services
-7.3
Carrier Network
-10.8
Dedicated hardware
delay to 2H
Social Infrastructure
+0.3
Increase in social
systems, despite
decrease in aerospace
and defense
Decrease in mobile
terminal shipments and
falling unit price of
business PC
Personal Solutions
-15.7
Platform
-11.0
Page 31
(Billions of Yen)
Others FY12/3 1H Results
-2.2
1,443.2
Decrease in electronic
components
© NEC Corporation 2011
1H Results
Operating Income Change (Year on Year)
(Billions of Yen)
Higher profits from improved mobile
terminal business, despite heavier
investments for new devices
Personal Others
Solutions +0.5
+0.5
Higher profits from sales
increase in domestic
business and submarine
cable systems
Flat profits due
to cost
reductions
despite sales
decrease
FY11/3 1H
1.1
Carrier Network
+8.3
Social
Infrastructure
+2.1
Higher profits from
sales increase
and lower costs
IT Services
-0.6
Platform
-0.7
Page 32
Remain flat from cost
efficiency while sales
decrease
© NEC Corporation 2011
Increase in
investment costs
Eliminations/
Unclassifiable
expenses
-4.5
FY12/3 1H
6.8
1H Results
Operating Income Change (from Forecasts as of Jul 28)
Improve from cost efficiency efforts
despite falling short of mobile terminal
shipment forecast
Sales increase in
social systems and
lower costs
Sales decrease
Personal
Solutions
+0.4
FY12/3
Eliminations/
Unclassifiable 1H Results
expenses
6.8
+4.2
FY12/3
Social
1H Forecasts
Infrastructure
as of Jul 28 IT Services
+2.1
0.0
(Billions of Yen)
Lower costs
Others
+1.5
-1.0
Cost efficiency efforts
Platform
-3.7
Sales decrease in
hardware
Carrier Network
+3.3
Improve profitability from product mix
Page 33
© NEC Corporation 2011
1H Results
IT Services Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
377.3
371.0
Operating income
ratio
362.7
-1.7%
1.0%
0.8%
Operating
Income
3.5
Page 34
s Decrease in retail and telecom, while
local government and medical sectors
were solid
▐ Operating Income
3.0 (-0.6)
s Almost flat profits due to cost
reductions despite sales decrease
9.6
FY10/3
1H
362.7 (-2.2%)
r Solid Outsourcing Business for BCP
Established new Data Center in Kansai
-2.2%
2.5%
▐ Sales
FY11/3
1H
3.0
FY12/3
1H
© NEC Corporation 2011
1H Results
Platform Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
166.2
176.8
174.0
+6.4%
-1.6%
Operating income
ratio
- 0.9%
- 1.3%
-1.5
-2.2
- 8.1%
Operating
Loss
-13.5
▐ Sales
r Software ：
Increase in operation management
software such as virtualization, cloud
computing platform
s Hardware ：
Decline due to a decrease in largescale project and revised introduction
schedule of dedicated hardware
r Enterprise Network ：
Increase due to the large-scale
project
▐ Operating Loss
FY10/3
1H
Page 35
FY11/3
1H
FY12/3
1H
174.0 (-1.6%)
-2.2 (-0.7)
s Remain same level as the previous
year by cost efficiency efforts despite
sales decrease
© NEC Corporation 2011
1H Results
Carrier Network Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
308.6
294.2
294.2 (+8.6%)
r Japan: Increase due to increase in
demand from data traffic hikes
r Overseas: Increase due to solid
execution of submarine cables systems
and increase in mobile backhaul (PASOLINK)
271.0
Operating income
ratio
▐ Sales
+8.6%
5.2%
-12.2%
4.0%
▐ Operating Income
2.6%
Operating
Income
15.3
12.4
r Higher profits from solid sales in Japan
and increase in submarine cable
systems
7.0
FY10/3
1H
Page 36
FY11/3
1H
15.3 (+8.3)
FY12/3
1H
© NEC Corporation 2011
1H Results
Social Infrastructure Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
140.3
137.9
129.7
+1.8%
+6.3%
Operating income
ratio
2.1%
Operating
Income
4.3%
▐ Sales
r Increase in social systems such as
broadcasting, fire and disaster
prevention, despite decrease in
aerospace and defense systems
▐ Operating Income
6.1
4.0
Page 37
FY11/3
1H
6.1 (+2.1)
r Increase by sales expansion and cost
reductions
2.9%
2.7
FY10/3
1H
140.3 (+1.8%)
FY12/3
1H
© NEC Corporation 2011
1H Results
Personal Solutions Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
+8.2%
Sales
▐ Sales
r Mobile Terminals :
-9.6%
392.1
362.3
Increase due to custom development and
improvement of product mix
(shipment : same level as previous year)
354.3
-1.1%
Mobile
157.1
Terminals
155.4
+7.0%
Operating income Ratio
2.3%
PCs and 205.2
Others
8.2
Page 38
▐ Operating Income
-20.6%
236.7
188.0
FY11/3
1H
Decrease due to the deconsolidation of
consumer PCs
1.0%
+15.4%
2.9
FY10/3
1H
s PCs and Others :
166.3
0.7%
Operating
Income
354.3 (-9.6%)
3.4
3.4 (+0.5)
r Increase due to profit improvement in
Mobile Terminals, despite increase in
development costs of new devices
FY12/3
1H
© NEC Corporation 2011
1H Results
Net Loss Change (Year on Year)
(Billions of Yen)
FY11/3 H1
FY12/3 H1
-27.0
-11.0
Gain on sales of
shares of affiliates
etc.
Others
+4.2
Carrier Network
+8.3
Social Infrastructure
+2.1
Eliminations/unclassifiable
expenses
-4.5
Improvement in
operating income/loss
+5.7
Improvement in
non-operating
income/loss
+6.2
Decrease in equity in losses of
affiliates etc.
Page 39
© NEC Corporation 2011
1H Results
Net Loss Change ( from Forecasts as of Jul 28)
(Billions of Yen)
FY12/3
1H Forecasts
as of Jul 28
Eliminations/unclassifiable
expenses
+4.2
Carrier Network
+3.3
Social Infrastructure
+2.1
Platform
-3.7
FY12/3
1H Results
-11.0
-15.0
Improvement in
operating income/loss
+6.8
Page 40
Improvement in
non-operating
income/loss
+2.8
Others
-5.6
© NEC Corporation 2011
1H Results
Overseas Sales
(Billions of Yen)
Q2 <Jul-Sep>
FY11/3
FY12/3
Actual
Actual
Asia
Europe
Others
Total
Net Sales
45.0
48.7
To consolidated total sales （％）
5.6%
6.3%
Net Sales
26.4
31.5
To consolidated total sales （％）
3.3%
4.1%
Net Sales
57.4
58.6
To consolidated total sales （％）
7.2%
7.6%
Net Sales
128.8
138.8
To consolidated total sales （％）
16.1%
17.9%
YoY
8.4%
19.1%
2.0%
7.7%
1H <Apr-Sep>
FY11/3
FY12/3
YoY
Actual
Actual
83.1
79.7
5.7%
5.5%
50.5
55.8
3.4%
3.9%
109.4
118.4
7.4%
8.2%
243.0
253.9
16.5%
17.6%
- 4.1%
10.5%
8.2%
Major countries and regions
China,Chines e Taipei,India,
Singapore and Indonesia
UK,France,Netherlands,
Germany,Italy and Spain
U.S.
4.5%
* Sales, based on customer locations, are classified by country or region
Page 41
© NEC Corporation 2011
1H Results
Financial Positions
(Billions of Yen)
End of Mar End of Sep
2011
2011
End of Sep
2010
2,628.9
2,450.6
-178.3
2,522.1
Net Assets
875.4
853.9
-21.5
853.8
Interest-bearing debt
675.8
647.0
-28.8
618.6
Shareholder's Equity
757.1
734.2
-22.8
735.4
Equity ratio(%)
28.8%
30.0%
1.2pt
29.2%
D/E ratio (times)
0.89
0.88
0.01pt
0.84
Net D/E ratio (times)
0.62
0.64
- 0.02pt
0.63
Balance of cash and cash
equivalents
203.9
178.6
Total Assets
Page 42
Difference
from Mar
2011
© NEC Corporation 2011
-25.3
158.8
1H Results
<Ref.> Balance Sheets (At end of Sep, 2011)
<Compared to end of Mar, 2011>
Total Assets 2,450.6 Billion Yen (-178.3 Billion yen)
Compared to end
of Mar, 2011
Current Assets
Liabilities
1,299.2 Billion Yen
1,596.7 Billion Yen
-143.4
-156.8
Collecting accounts
receivable
Noncurrent Assets
1,151.4 Billion Yen
Net Assets
-34.9
853.9 Billion Yen
Decrease in property, plant
and equipment, and decrease
in stocks of subsidiaries and
affiliates
Page 43
Decrease in notes and accounts
payable in addition to the redemption
of convertible bonds
-21.5
Recording net loss for 1H, FY12/3
© NEC Corporation 2011
Financial Forecasts for FY12/3 (Appendix)
Key Points to Achieve Financial Forecasts
IT Services
Full Year
Forecasts
l Secure business opportunities from investment recovery in manufacturing and
demand involving law amendments
l Improve by controlling loss-making projects, higher productivity and quality
Platform
l Increase cloud-related services for data centers and energy saving solutions
l Higher profits from sale increase, cost efficiency and cost reductions
Carrier
Network
l Secure business opportunities arising from data traffic hikes
l Higher profits from sales increase, overcoming incremental investments for future
growth
Social
Infrastructure
l Secure steady sales from increase in social systems, including broadcasting, fire
and disaster prevention
l Higher profits with sales increase and cost efficiency
Personal
Solutions
l Decrease due to deconsolidation of consumer PC business, despite increase in
smartphones
l Higher profits from improved mobile terminal business
Others
l Decrease due to deconsolidation of LCD module business, despite increase in
battery business
l Lower profits from sales decrease in electronic component business
Note: First bullets refer to changes in sales, second bullets refer to changes in operating income/loss
Page 45
© NEC Corporation 2011
Full Year
Forecasts
Sales Change (Year on Year)
Secure business
opportunities arising from
data traffic hikes
-10.0
Deconsolidation of
consumer PC
business, increase in
smartphones
3,115.4
Personal Solutions
-36.5 (-4.8%)
-35.0
Carrier Network
+144.6 (+23.9%)
Increase from cloudrelated business for data
center services and energy
saving solutions
FY11/3
(Billions of Yen)
3,250.0
Others
-4.7
-10.0
Platform
+14.2 (+3.8%)
Social Infrastructure
+11.2 (+3.5 %)
+5.0
Secure steady sales from
increase in social systems,
including broadcasting, fire
and disaster prevention
IT Services
+5.8 (+0.7%)
Changes
from forecasts
as of Jul 28
Page 46
FY12/3
Forecast(*)
Secure business
opportunities from
investment recovery in
manufacturing and demand
involving law amendments
© NEC Corporation 2011
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Operating Income Change (Year on Year)
(Billions of Yen)
Higher profits from
improved mobile
terminal business
Personal Solutions
+16.9
Aim for higher profits with
sales increase and cost
efficiency
Higher profits from sales
increase, overcoming
incremental investments
for future growth
57.8
90.0
Eliminations/
Unclassifiable
expenses -16.8
Platform
+5.1
IT Services +11.6
Higher profits from sales
increase, cost efficiency
and cost reductions
Improve by controlling lossmaking projects, higher
productivity and quality
Page 47
FY12/3
Forecast(*)
Social Infrastructure
+0.4
Carrier Network
+16.3
FY11/3
Others
-1.3
© NEC Corporation 2011
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
IT Services Business
2H
Full Year
YoY
6.1%
8.9%
Operating income
ratio
6.7%
Operating income
ratio
2.7%
866.3
489.0
447.3
433.2
Operating
Income
+3.2%
-11.4%
4.1%
Sales
4.1%
Sales
Operating
Income
(Billions of Yen)
804.2
810.0
-7.2%
+0.7%
53.2
43.6
30.0
33.0
21.4
17.9
FY10/3
2H
Page 48
FY11/3
2H
FY12/3
2H
Forecasts(*)
© NEC Corporation 2011
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
IT Services Business
Billions of Yen (YoY)
▐ Sales
810.0
(+0.7%)
r Secure business opportunities from investment recovery in
manufacturing, demand involving law amendments and introducing
electronic health record systems in medical services
r Promote solid cloud services for enterprises and organizations
▐ Operating Income
33.0
(+11.6)
r Improve by controlling loss-making projects, higher productivity and
quality such as enhancement of services delivery efficiency
*Forecasts as of Oct 27, 2011
Page 49
© NEC Corporation 2011
Full Year
Forecasts
Platform Business
2H
Full Year
7.5%
(Billions of Yen)
YoY
Operating income
ratio
5.7%
Operating income
ratio
5.2%
- 0.5%
Sales
Sales
207.5
216.0
199.0
390.0
375.8
373.7
+8.6%
+3.8%
+0.6%
-4.1%
Operating
Income
11.8
3.6%
2.4%
16.2
14.0
8.9
Operating
Income/ loss
10.4
-1.7
FY10/3
2H
Page 50
FY11/3
2H
FY12/3
2H
Forecasts(*)
© NEC Corporation 2011
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Platform Business
▐ Sales
390.0 （+3.8%）
Billions of Yen (YoY)
r Software ：
Expect to increase in operation management software mainly for
data centers, such as server integration, virtualization and cloud
computing platform
s Hardware ：
Focus on products for energy saving, for BCP such as backup and
thin-clients, to respond to demand for datacenters
r Enterprise Network ：
Aim to increase sales by solution for work-style innovation with
smartphones and deploying low-capacity communication server
UNIVERGE “SL1000” for emerging markets
▐ Operating Income
14.0 （+5.1）
r Higher profits from sales increase, cost efficiency
and continual cost reductions
*Forecasts as of Oct 27, 2011
Page 51
© NEC Corporation 2011
Full Year
Forecasts
Carrier Network Business
2H
Full Year
(Billions of Yen)
YoY
10.1%
9.1%
Operating income
ratio
455.8
Sales
5.9%
Sales
318.8
6.7%
5.0%
627.4
+36.3%
334.5
7.6%
Operating income
ratio
750.0
605.4
+23.9%
57.0
-3.5%
41.7
+4.9%
Operating
Income
33.8
Operating
Income
40.7
31.3
19.0
FY10/3
2H
Page 52
FY11/3
2H
FY12/3
2H
Forecasts(*)
© NEC Corporation 2011
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Carrier Network Business
Billions of Yen (YoY)
▐ Sales
750.0 (+23.9%)
r Achieve additional sales growth in Japan by capturing business
opportunities arising from data traffic hikes
r Attain sales increase by solid execution and securing additional
projects of submarine cable systems
r Achieve business expansion for mobile backhaul, mainly in Russia
and Latin America, with new full-IP PASOLINK products
r Attain business growth in service and management, including
carrier cloud
▐ Operating Income
57.0 (+16.3)
r Expect to increase profits from sales expansion
in domestic business and submarine cable
systems, and sales recovery in mobile backhaul
*Forecasts as of Oct 27, 2011
Page 53
© NEC Corporation 2011
Full Year
Forecasts
Social Infrastructure Business
2H
Operating income
ratio
Full Year
10.2%
6.9%
4.7%
Operating
Income
189.7
330.0
318.8
316.6
+3.5%
Operating
Income
+4.8%
-3.2%
+0.7%
21.7
19.0
14.6
10.6
FY10/3
2H
Page 54
4.5%
Sales
Sales
180.9
YoY
Operating income
ratio
4.6%
5.8%
186.9
(Billions of Yen)
FY11/3
2H
15.0
8.9
FY12/3
2H
Forecasts(*)
© NEC Corporation 2011
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Social Infrastructure Business
Full Year
Forecasts
Billions of Yen (YoY)
▐ Sales
330.0 （+3.5%）
r Expect to increase due to an increase in social systems such as
broadcast, fire and disaster preventions,
despite a decrease in aerospace and defense systems
▐ Operating Income
15.0 （+0.4）
r Expect higher profits due to sales increase
and cost reductions
*Forecasts as of Oct 27, 2011
Page 55
© NEC Corporation 2011
Full Year
Forecasts
Personal Solutions Business
2H
Full Year
2.6%
-1.3%
375.7
374.5
+28.8%
Mobile
Terminals 125.4
PCs and
Others
Sales
148.1
190.7
Operating
Income/Loss
250.0
-18.3%
10.7
Page 56
2.1%
+3.9%
226.3
185.0
11.6
Mobile
Terminals
PCs and
Others
737.7
766.5
282.5
303.5
FY11/3
2H
-0.2%
-4.8%
730.0
+17.6%
357.0
Operating
Income/Loss
455.2
18.9
-19.4%
463.0
373.0
15.0
-1.9
-4.8
FY10/3
2H
Operating income
ratio
+0.3%
-0.3%
375.4
YoY
3.1%
Operating income 2.8%
ratio
Sales
(Billions of Yen)
FY12/3
2H
Forecasts(*)
© NEC Corporation 2011
FY10/3
FY11/3
FY12/3
Forecasts(*)
*Forecasts as of Oct 27, 2011
Full Year
Forecasts
Personal Solutions Business
Billions of Yen (YoY)
▐ Sales
730.0 （-4.8%）
r Mobile Terminals :
Increase from expansion of smartphone business
in Japan and overseas
s PC and Others :
Decrease due to the deconsolidation of consumer PCs
▐ Operating Income
15.0 （+16.9）
r Higher profits due to sales increase in mobile terminals from shift to
smartphones, and improvements in cost performance from slashing
fixed costs and enhanced R&D efficiency
*Forecasts as of Oct 27, 2011
Page 57
© NEC Corporation 2011
Full Year
Forecasts
Net Income/Loss Change (Year on Year)
(Billions of Yen)
Personal Solutions
+16.9
Carrier Network
+16.3
IT Services
+11.6
Platform
+5.1
Social Infrastructure
+0.4
Others
-1.3
Eliminations/unclassifiable
expense
-16.8
Improvement in
non-operating
income/loss
+22.8
Narrower investment loss
from the equity method
Increase in tax payments
Others
-27.5
Improvement in
operating income
+32.2
FY12/3
Forecast
15.0
FY11/3
-12.5
*Forecasts as of Oct 27, 2011
Page 58
© NEC Corporation 2011
Capital Expenditure, Depreciation and R&D expenses
Full Year
Forecasts
(Billions of Yen)
FY11/3
FY12/3
Actual
Forecasts
YoY
Capial Expenditure
52.9
80.0
51.4%
Depreciation
62.1
65.0
4.7%
176.5
185.0
4.8%
5.7%
5.7%
R&D expenses
To consolidated total sales （％）
Note: Unchanged from full year forecasts announced on Jul 28
Page 59
© NEC Corporation 2011
Progress on Mid-Term Growth Plan V2012
Mid-Term Growth Plan V2012 by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
FY10/3-FY13/3
CAGR
200.0
4,000.0
3,583.1
3,115.4
IT Services
3,250.0
+8%
373.7
Carrier
Network
627.4
Social
Infrastructure
316.6
Personal
Solutions
737.7
Others
661.4
FY10/3
804.2
375.8
605.4
810.0
+3%
IT Services
390.0
+13%
750.0
318.8
330.0
766.5
730.0
244.7
240.0
FY11/3
FY12/3
(Forecasts)
+6%
+7%
-24%
FY13/3
(Plan)
90.0
50.9
866.3
Platform
<8%>
Platform
53.2
Carrier
Network
Social
Infrastructure
Personal
Solutions
18.9
- 1.7
Others
- 44.9
Eliminations/
Unclassifiable
expenses
31.3
21.7
57.8
21.4
8.9
40.7
14.6
7.3 - 1.9
- 33.2
<5%>
33.0
14.0
<9%>
57.0
<5%>
<2%>
15.0
15.0
6.0
<Operating
Income
Ratio>
- 50.0
- 27.5
FY10/3
FY11/3
FY12/3
(Forecasts)
FY13/3
(Plan)
*Forecasts as of Oct 27, 2011
Page 61
© NEC Corporation 2011
Progress to Achieve V2012 Target
Key Measures
Focus Areas
Cloud
l
l
l
l
Deliver cloud services for local governments
Create new business with cloud
Promote data center and platform strategies
Promote commercial LTE systems in Japan
Global
l
l
l
l
Launch CODC (Cloud Oriented Data Center) business
Expand mobile backhaul and submarine cable systems
Expand carrier cloud business
Promote and expand wireless broadband access
New
Business
Page 62
l Reinforce manufacturing to respond to demand in automotive
batteries
l Develop and sale of home-use power storage systems
l Expand alliance strategy in smart energy
l Serve smartphone MEDIAS to 3 Japanese telecom carriers
© NEC Corporation 2011
Measures and achievements in Cloud Business
l Financial accounting cloud
services for 10 cities
in Kanagawa
l Accounting system for COOKPAD Inc.
l Cloud services of Internet reservation
data exchange for HOTEL CENTURY
SOUTHERN TOWER
l Unified communication system
for Ishigaki City and Taketomi town
in Okinawa
l Saas-based e-ticket issuance
and authentication services
for Entertainment Plus Inc.
l Indirect material procurement
services for Cecile Co., Ltd.
Central and local
governments,
Medical services
Retail
Services
l SaaS-based electric medical
records system for Tamashima
Daiichi Hospital in Kurashiki City,
Okayama
Finance
l Collaboration with Mitsubishi Electronic
Corporation in cloud service business
for manufacturing management systems
l Shipping LTE base stations
for KDDI
l Alliance with OBAYASHI
Manufacturing
CORPORATION and
GRAPHISOFT SE in Smart BIM Cloud
Telecom
Media
l Launched M2M Solution
“CONNEXIVE”
l Established new Data Center in Kansai
l Began construction of new Data Center in Hokkaido
Page 63
Cloud
© NEC Corporation 2011
Measures and achievements in Global Business
Collaboration with
Neusoft Corporation
on cloud services
l
Collaboration with
Royal Philips
Electronics in digital
pathology systems
l
l
l
Transport Management
System for logistics
company in China
l
Collaboration with
Jointown
Pharmaceutical Group
on Medical logistics
solution
Provide Swiss Post with
the Latest Mail Processing Systems
l
l
l
Femtocell
systems for
Kuwait Zain
NetCracker acquired
activation business
from India Subex
l
Launch production of
PASOLINK in India
l
Partnership with India
Trimax on cloud
services
Page 64
l
SaaS cloud service for the
Amata Industrial Estate,
Thailand
Collaboration with Cisco to build
commercial LTE Networks
l
ProgrammableFlow for
Genesis Hosting
l
Collaboration with Singapore STEE on cloud services
l
Deployed advanced postal automation system in Malaysial
l
POS system for Alfamart, one of Indonesia’s retailers
l
South-East Asia Japan Cable (SJC) system
l
Maldives' domestic submarine cable system
© NEC Corporation 2011
Orders for iPASOLINK
over 110,000 units
by 100 operators in 55
countries
Digital Signage for UNIQLO
l
l
Global
l
Participated in Smart City
development in Brazil
Established NEC Latin
America S.A.
Measures and achievements in Smart Energy Business
EV Charging
Infrastructure
l
Electric Vehicle
HEMS
SEMS
New
business
Power Supply
Side
BEMS
l
Launched household energy storage system
l
Launched Home Energy Management System (HEMS)
l
Began demonstration project for Battery and Charger Integration Systems for next generation service
stations as part of Yokohama City’s “Yokohama Smart City Project”
l
Developed new technology which doubles life of manganese Li-ion rechargeable battery
l
Develop new power grid to introduce renewable energy easily with Tokyo Univ. and the National Institute
of Advanced Industrial Science and Technology
Strategic partnership with Enel
Distribuzione on the development of
Next-Generation Smart Grid system
l
l
Page 65
Basic research to realize
green township in Malaysia
l
Feasibility study of smart community
for overseas market in Indonesia
© NEC Corporation 2011
Participated in
Smart City
development in Brazil
Reference (Financial data)
Net Sales, Operating Income/Loss
Operating income ratio
(Billions of yen)
8.7%
7.6%
0.3%
- 0.9%
- 5.1%
-22.3%
778.5
Overseas Sales
875.2
186.9
-13.0%
-8.4%
186.8
（ 16.9％）
-14.2%
825.4
667.5
（21.2%）
（Overseas Sales Ratio）（21.1%）
Q1
Page 67
720.7
128.8
+0.2%
118.8
（16.1%）
774.1
(12.8%)
669.1
117.5
115.1
（16.3%）
（17.1%）
138.8
(17.9%)
（17.2%）
70.2
Operating
Income/
Loss
-40.0
801.6
-3.4%
925.5
-12.7%
114.2
96.1
Sales in Japan
- 2.9%
-16.2%
1,104.1
175.2
（21.4%）
163.9
- 1.9%
- 3.5%
-3.1%
Net Sales
-22.3%
3.4%
3.0%
24.3
2.3
Q2
-7.5
Q3
26.2
-23.2
Q4
Q1
-13.5
Q2
Q3
-19.4
Q4
Q1
Q2
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep>
FY10/3
FY11/3
FY12/3
© NEC Corporation 2011
YoY
Sales, Operating Income/Loss (IT Services)
(Billions of yen)
13.3%
9.3%
Operating income ratio
4.8%
5.0%
4.4%
1.8%
- 0.4%
301.5
- 3.5%
- 3.9%
209.8
167.6
40.2
-1.4%
-7.7%
209.7
187.6
-10.8%
161.2
Page 68
157.5
-8.8%
-2.2%
-2.3%
24.5
10.2
Q2
Q3
10.3
9.2
3.4
-0.6
Q1
205.2
-13.0%
171.0
0.0%
-3.8%
Operating
Income/
Loss
- 4.7%
262.2
-7.7%
Sales
YoY
-5.7
Q4
Q1
-7.4
-6.6
Q2
Q3
Q4
Q1
Q2
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep>
FY10/3
FY11/3
FY12/3
© NEC Corporation 2011
Sales, Operating Income/Loss (Platform)
10.0%
(Billions of yen)
10.7%
Operating income ratio
3.4%
3.0%
0.7%
- 0.3%
- 2.4%
- 5.5%
- 6.8%
120.6
116.5
- 19.1%
92.3
Sales
87.0
96.7
-8.5%
Q1
Page 69
-2.7%
-19.8%
-5.1%
+8.3%
-34.1%
-14.1
79.9
+4.8%
-21.0%
Operating
Income/
Loss
82.5
80.0
73.9
94.1
-3.4%
-0.2%
12.4
12.1
0.7
Q2
-0.3
Q3
-4.4
Q4
Q1
2.9
Q2
-2.0
Q3
-5.4
Q4
Q1
3.2
Q2
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep>
FY10/3
FY11/3
FY12/3
© NEC Corporation 2011
YoY
Sales, Operating Income/Loss (Carrier Network)
Operating income
ratio
YoY
9.6%
8.4%
7.1%
8.3%
4.0%
175.9
166.9
142.9
141.7
-25.9%
-17.1%
188.7
-5.1%
154.2
162.3
145.7
Operating
Income/
Loss
116.8
-7.6%
2.0
Page 70
Q2
Q3
+5.3%
+12.9%
27.9
16.9
0.5
131.9
+2.0%
-19.8%
11.8
+7.3%
-24.4%
-17.6%
Q1
1.4%
1.4%
0.4%
Sales
(Billions of yen)
14.8%
13.0
13.5
5.8
1.8
-6.0
Q4
Q1
Q2
Q3
Q4
Q1
Q2
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep>
FY10/3
FY11/3
FY12/3
© NEC Corporation 2011
Sales, Operating Income/Loss (Social Infrastructure)
(Billions of yen)
15.1%
YoY
Operating income ratio
8.8%
6.9%
4.6%
4.7%
0.7%
0.9%
-1.2%
122.2
0.6%
0.7%
114.3
-2.0%
-6.4%
Sales
72.4
64.7
57.2
18.4
-18.1%
Operating
Income/
Loss 3.4
-0.7
Q1
66.6
Q2
58.8
+9.7%
+2.6%
+3.0%
+0.7%
+2.0%
10.1
5.7
3.7
0.6
Q3
<Apr-Jun> <Jul-Sep> <Oct-Dec>
FY10/3
Page 71
58.4
-4.1%
-4.3%
81.5
79.5
Q4
Q1
0.4
0.4
0.3
Q2
Q3
Q4
Q1
Q2
<Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep>
FY11/3
© NEC Corporation 2011
FY12/3
Sales, Operating Income/Loss (Personal Solutions)
(Billions of yen)
Operating income ratio
4.6%
2.0%
YoY
3.6%
-0.2%
-0.4%
1.6%
-0.8%
0.7%
1.2%
-1.8%
Sales
+4.6%
-17.1%
194.9
-23.6%
167.4
Mobile
Terminals
PCs and
Others
-13.4%
59.3
63.9
Operating
Income/
Loss
8.9
101.7
Q1
193.5
198.5
176.7
66.1
93.2
+9.2%
193.0
76.3
79.1
-8.7%
80.3
-5.2%
-14.0%
181.5
183.5
67.8
79.5
170.8
86.8
132.6 7.2
117.4
103.5
-0.7
Q2
3.4
122.3
114.4
112.7
Q3
FY10/3
113.7
3.3
-1.6
-0.4
<Apr-Jun> <Jul-Sep> <Oct-Dec>
Page 72
198.7
+18.6%
-0.7%
Q4
Q1
Q2
Q3
104.0
-3.2
Q4
1.3
Q1
84.0
2.1
Q2
<Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep>
FY11/3
© NEC Corporation 2011
FY12/3
Sales, Operating Income/Loss (Others)
6.6%
Operating income ratio
6.7% (Billions
4.7%
YoY
0.2%
2.1%
- 7.8%
- 0.9%
- 2.0%
- 4.6%
- 17.2%
185.2
Sales
166.5
166.5
+38.6%
143.1
-31.2%
-16.7%
-40.7%
Operating
Income/
Loss
-24.7
Q1
Page 73
-12.9
Q2
-7.7
Q3
0.4
Q4
of yen)
-59.8%
-62.2%
-62.8%
-66.3%
57.6
63.0
61.9
62.3
-1.1
Q1
4.2
Q2
1.3
Q3
2.9
Q4
0.0%
-4.4%
57.6
60.2
4.0
-0.5
Q1
Q2
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
<Apr-Jun> <Jul-Sep>
FY10/3
FY11/3
FY12/3
© NEC Corporation 2011
Exchange Rate
(Yen)
125
Euro/Yen Exchange rate(Actual)
Assumed Exchange rate
120
115
110
Average exchange rate ¥115.20
105
100
90
Dollar/Yen Exchange rate(Actual)
Assumed Exchange rate
85
Average exchange rate ¥80.64
80
75
4/1
Page 74
4/28
5/31
6/30
© NEC Corporation 2011
7/29
8/31
9/30
Stock Price
(Yen)
10,500
195
Apr 11:NEC IR Day (Personal Solutions)
190
May 10:FY11/3 Earnings
Jul 28:Q1 Earnings
10,000
185
180
9,500
175
170
9,000
165
160
Jun 22:Ordinary
General Meeting of
Shareholders
8,500
NEC
155
150
the Nikkei Stock
8,000
145
4/1
Page 75
4/11
5/10
6/22
6/30
© NEC Corporation 2011
7/28
9/30
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"). Written forward-looking
statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director
of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safeharbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified
by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans,"
"estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can
also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking
statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and
NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking
statements, which reflect NEC’s analysis and expectations only. Forward-looking statements are not guarantees of future
performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ
materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially
from such statements include (i) global economic conditions and general economic conditions in NEC’s markets, (ii)
fluctuating demand for, and competitive pricing pressure on, NEC’s products and services, (iii) NEC’s ability to continue to
win acceptance of NEC’s products and services in highly competitive markets, (iv) NEC’s ability to expand into foreign
markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC’s business and
operations, (vi) NEC’s ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii)
movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of
unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from
devaluation of listed securities held by NEC, and (iv) impact of any regulatory action or legal proceeding against NEC. Any
forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time
to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any
obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or
otherwise.
The management targets included in this material are not projections, and do not represent management’s current estimates
of future performance. Rather, they represent targets that management will strive to achieve through the successful
implementation of NEC’s business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not
be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the
applicable securities laws is not granted.