Presentation

Financial Results for
Fiscal Year Ended March 31, 2014
April 28, 2014
NEC Corporation
(http://www.nec.com/en/global/ir)
Index
Ⅰ. Financial Results for FY14/3
Ⅱ. Financial Forecasts for FY15/3
Ⅲ. Progress on Mid-term Management Plan 2015
l Financial Results for FY14/3 (Appendix)
l Financial Forecasts for FY15/3 (Appendix)
l Progress on Mid-term Management Plan 2015 (Appendix)
l Reference (Financial data)
※ As stated in the July 9, 2013 announcement, “NEC to Revise Business
Segments,” NEC has revised its business segments from the first quarter of
the fiscal year ended March 31, 2014. Figures for the corresponding period
of the previous fiscal year have been restated to conform with the new
segments.
Page 2
© NEC Corporation 2014
Ⅰ. Financial Results for FY14/3
Summary of Financial Results for FY14/3
Results
FY14/3
l Achieved company forecast
Net Sales
YoY -0.9%
Difference from forecast
+43.1B Yen
Operating
Income
YoY -8.5B Yen
Difference from forecast
+6.2B Yen
Net Income
YoY +3.3B Yen
Difference from forecast
+13.7B Yen
Page 4
(approx. 6% increase based on existing business)
• Increased in Public, Enterprise, Telecom Carrier and
System Platform
• Decreased in Others due to deconsolidation of NEC
Mobiling, Ltd. etc.
l Achieved company forecast for two consecutive
years
• Decreased due to deconsolidation of NEC Mobiling, Ltd.
impact from LCD patent sale in the previous year, and a
decrease in Telecom Carrier
• Increased in Public and Enterprise business
l Achieved company plan for two consecutive years, and
increased YoY
•
Recording extraordinary income by selling stocks of NEC
Mobiling, Ltd. and NEC BIGLOBE, Ltd.
l Decided on a 4 yen dividend per share
© NEC Corporation 2014
Results
FY14/3
Summary of Financial Results for FY14/3
(Billions of Yen)
Q4 <January to March>
FY13/3
FY14/3
Actual
Actual
YoY
Net Sales
901.8
959.6
6.4%
Operating Income
42.8
82.5
39.6
4.8%
8.6%
40.3
63.7
4.5%
6.6%
19.0
48.8
2.1%
5.1%
134.7
149.3
% to Net Sales
Ordinary Income
% to Net Sales
Net Income
% to Net Sales
Free Cash Flow
Note:
Full Year
FY13/3
FY14/3
Actual
Actual
3,071.6
3,043.1
-0.9%
43.1
114.6
106.2
-8.5
6.2
3.7%
3.5%
92.0
69.2
-22.9
-0.8
3.0%
2.3%
30.4
33.7
3.3
13.7
1.0%
1.1%
23.4
29.9
14.6
Average exchange rates for Q4 of FY14/3 $1= ¥103.18, €1= ¥140.86
(Assumed exchange rates for FY14/3 $1 = ¥100, €1= ¥125)
Average exchange rates for FY14/3 $1= ¥99.61, €1= ¥132.83
(Average exchange rates for FY13/3 $1= ¥82.08, €1= ¥105.98)
Page 5
Difference
from
Jan 30
© NEC Corporation 2014
42.0
55.2
YoY
13.2
Results
FY14/3
Results by Segment for FY14/3
(Billions of Yen)
Net Sales
Public
Operating Income
% to Net Sales
Net Sales
Enterprise
Operating Income
% to Net Sales
Net Sales
Telecom Carrier
Operating Income
% to Net Sales
Net Sales
System Platform
Operating Income
% to Net Sales
Net Sales
Others
Operating Income/Loss
% to Net Sales
Adjustment
Total
10.1%
73.7
3.3
4.5%
200.3
22.7
11.3%
209.9
16.8
8.0%
163.4
-10.1
-6.2%
9.8%
81.5
6.0
7.2%
10.7%
2.7
7.4%
219.0
28.5
9.4%
5.8
709.3
71.6
10.1%
16.4%
4.1
744.4
32.7
-12.1%
19.7
685.7
16.9
8.6%
143.7
9.6
251.6
5.5
2.2%
13.0%
244.3
20.9
FY13/3
Actual
680.7
49.0
4.4%
6.7%
2.5%
Full Year
FY14/3
Actual
738.4
58.6
YoY
Difference
from
Jan 30
8.5%
9.6
-6.6
1.6
8.2%
1.1
7.3
0.5
2.3%
-11.2
10.8
0.3
4.9%
-2.0
40.8
1.7
-23.3%
-18.3
-9.1
-3.4
7.9%
272.3
6.5
2.4%
725.8
60.3
8.3%
780.8
30.7
3.9%
525.9
-1.4
-0.3%
Operating Loss
-15.7
-9.1
6.6
-61.0
-48.6
12.4
5.4
Net Sales
901.8
42.8
959.6
82.5
6.4%
39.6
3,071.6
114.6
3,043.1
106.2
-0.9%
-8.5
43.1
6.2
Operating Income
% to Net Sales
Page 6
Q4 <January to March>
FY13/3
FY14/3
YoY
Actual
Actual
254.5
271.0
6.5%
25.8
26.5
0.7
4.8%
8.6%
© NEC Corporation 2014
3.7%
3.5%
Results
FY14/3
Public Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
738.4
Operating +4.8%
Income
Ratio
6.7%
43.3
FY12/3
Page 7
r Increased due to steady sales from
government and public areas
7.9%
7.2%
49.0
FY13/3
(+8.5%)
(+9.6)
r Improved due to sales increase
+8.5%
Operating
Income
738.4
▐ Operating Income 58.6
680.7
649.5
▐ Sales
58.6
FY14/3
© NEC Corporation 2014
Results
FY14/3
Enterprise Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
272.3
Sales
251.6
222.2
+13.2%
2.2%
0.2%
5.5
2.4%
6.5
0.5
Page 8
FY13/3
(+8.2%)
6.5
(+1.1)
r Improved due to sales increase,
despite investment in infrastructure for
the retail and logistics industries
Operating
Income
FY12/3
272.3
r Increased due to steady sales from
the retail and services industries
▐ Operating Income
+8.2%
Operating
Income
Ratio
▐ Sales
FY14/3
© NEC Corporation 2014
Results
FY14/3
Telecom Carrier Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
725.8
709.3
659.3
Operating +7.6%
Income
Ratio
Operating
Income
10.1%
8.3%
71.6
54.6
725.8
(+2.3%)
s Japan: Decreased from the previous
fiscal year, where there was strong
demand
r International: Increased mainly in
TOMS
+2.3%
8.3%
▐ Sales
60.3
▐ Operating Income 60.3
(-11.2)
s Decreased due to accelerated
investment in SDN, etc. and temporary
profit related to intellectual property in
the previous fiscal year
TOMS : Telecom Operations and Management Solutions
SDN : Software-Defined Networking
FY12/3
Page 9
FY13/3
FY14/3
© NEC Corporation 2014
Results
FY14/3
System Platform Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
780.8
744.4
711.0
+4.9%
+4.7%
Operating
Income
Ratio
4.4%
▐ Sales
▐ Operating Income 30.7
3.9%
Operating
Income
Page 10
FY13/3
(-2.0)
s Decreased due to project lineup
changes
30.7
13.8
FY12/3
(+4.9%)
r Increased mainly in business PCs,
despite the impact of large-scale
projects in the previous fiscal year
1.9%
32.7
780.8
FY14/3
© NEC Corporation 2014
Results
FY14/3
Others
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
794.9
685.7
1.3%
Operating
Income
/Loss
10.4
Page 11
(-23.3%)
s Decreased in mobile phone shipments
-23.3%
▐ Operating Loss
525.9
2.5%
- 0.3%
16.9
FY13/3
-1.4
(-18.3)
s Worsened due to the impact of LCD
patent sales in the previous fiscal year,
deconsolidation of businesses and
decreased sales
-1.4
FY12/3
525.9
s Decreased due to deconsolidation of
NEC Mobiling, Ltd. and the electronic
components business
-13.7%
Operating
Income
Ratio
▐ Sales
FY14/3
© NEC Corporation 2014
Mobile Phone Business Update
Results
FY14/3
▐ Conventional mobile phones （business policy revision）
l
Continue business in Japan utilizing existing technology assets
l
Discontinue international business
▐ Additional cost
l
Recorded approx. 11.0 billion yen of extraordinary loss （business
structure improvement expenses ) in the second half
(Total approx. 22.0 billion yen recorded for the full year of FY2013,
including approx. 11.0 billion yen in the first half)
•
Liquidation cost for the overseas subsidiary of NEC CASIO Mobile Communications, Ltd.
•
Expenses related to the discontinuation of new development for international markets under a
revised policy for conventional mobile phones, and maintenance costs in Japan
Issues resolved, Minimize operations
Page 12
© NEC Corporation 2014
Results
FY14/3
Net Income Change (Year on Year)
Others
Telecom Carrier
System Platform
Public
Adjustment
Difference
from Jan 30
FY13/3
30.4
-18.3
-11.2
-2.0
+9.6
+12.4
+6.2
(Billions of Yen)
FY14/3
33.7
Decrease in
operating income
-8.5
+14.5
Decrease in
non-operating
income/loss -14.4
Others
+26.2
-7.0
Increase in provision for contingent loss,
and Increase in interest expenses
Page 13
© NEC Corporation 2014
Gain on sales of subsidiaries and
affiliates’ stocks
Ⅱ. Financial Forecasts for FY15/3
NEC’s Management Policy for FY15/3
▐ Market forecast
l
The Japanese economy is expected to grow moderately toward the second half of the
fiscal year （In terms of the world economy, a recovery is expected in Europe and the U.S. , while
emerging markets are expected to have moderate growth)
•
IT investment in Japan is expected to see a steady growth in fields such as system integration
and outsourcing
–
Public ： Expansion in investment related to social infrastructure such as continuous strong demand for
digital wireless fire prevention systems and an increase in investment by Japan’s central and local
governments for the national ID number system in the public field
•
Telecom Carrier ： Global expansion in investment for the LTE related projects
and the TOMS / SDN market
•
Energy ： Rechargeable battery market to be stimulated by government subsidies
▐ Business strategy
l
Execute strategic investment in focused areas for growth
l
Expand GSD business, Improve the profitability of international business, drive cost
reduction initiatives・・・
“CS No.1” “Global First” “One NEC”
※GSD : Global Safety Division
Page 15
© NEC Corporation 2014
Forecasts
FY15/3
Summary of Financial Forecasts for FY15/3
▐ Achieve 120 billion yen in operating income
(Sales increase by approx. 4% based on existing business)
(Billions of Yen)
(Billions of Yen)
Full Year
FY14/3
Actual
FY15/3
Forecasts
Net Sales
YoY
Public
Operating Income
% to Net Sales
Net Sales
Net Sales
3,043.1
3,000.0
-1.4%
Enterprise
Operating Income
% to Net Sales
Net Sales
Operating Income
% to Net Sales
Ordinary Income
% to Net Sales
Net Income
% to Net Sales
106.2
120.0
3.5%
4.0%
69.2
90.0
2.3%
3.0%
33.7
35.0
1.1%
1.2%
13.8
Telecom Carrier
Operating Income
% to Net Sales
Net Sales
20.8
System Platform
Operating Income
% to Net Sales
Net Sales
Others
1.3
Operating Income/Loss
% to Net Sales
Adjustment
Operating Loss
Net Sales
Net Income per share
(Yen)
Total
12.99
13.47
0.48
Operating Income
% to Net Sales
FY14/3
Actual
738.4
58.6
7.9%
272.3
6.5
2.4%
725.8
60.3
8.3%
780.8
30.7
3.9%
525.9
-1.4
-0.3%
Full Year
FY15/3
Forecasts
800.0
73.0
YoY
8.3%
14.4
9.1%
275.0
9.0
1.0%
2.5
3.3%
770.0
66.0
6.1%
5.7
8.6%
775.0
35.0
-0.7%
4.3
4.5%
380.0
1.0
-27.7%
2.4
0.3%
-48.6
-64.0
-15.4
3,043.1
106.2
3,000.0
120.0
-1.4%
13.8
3.5%
4.0%
Note: Assumed exchange rates for FY15/3 $1=¥100, €1=¥130
* Forecasts as of April 28, 2014
Page 16
© NEC Corporation 2014
Forecasts
FY15/3
Public Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
800.0
738.4
680.7
Operating +8.5%
Income
Ratio
+8.3%
49.0
FY13/3
FY14/3
(+8.3%)
r Increase due to steady sales mainly
from the government and public areas
such as fire prevention systems and
the national ID number system
▐ Operating Income 73.0
7.9%
58.6
800.0
9.1%
7.2%
Operating
Income
▐ Sales
73.0
(+14.4)
r Improve due to sales increase,
cost reductions and a decrease in
loss making projects
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 17
© NEC Corporation 2014
Forecasts
FY15/3
Enterprise Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
275.0
272.3
▐ Sales
275.0
(+1.0%)
r Increase due to steady sales
from manufacturing industries
251.6
Operating
Income
Ratio
2.2%
Operating
Income
5.5
FY13/3
▐ Operating Income
+1.0%
+8.2%
3.3%
9.0
(+2.5)
r Improve due to sales increase
2.4%
9.0
6.5
FY14/3
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 18
© NEC Corporation 2014
Forecasts
FY15/3
Telecom Carrier Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
Operating
Income +2.3%
Ratio
+6.1%
8.3%
8.6%
Operating
Income
FY13/3
60.3
FY14/3
(+6.1%)
r Japan: Remain same level
▐ Operating Income 66.0
10.1%
71.6
770.0
r International: Increase mainly in focus
areas such as TOMS / SDN,
in addition to mobile backhaul
770.0
725.8
709.3
▐ Sales
(+5.7)
r Improve due to sales increase mainly
in international business
66.0
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 19
© NEC Corporation 2014
Forecasts
FY15/3
System Platform Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
780.8
775.0
744.4
Operating
Income
Ratio
4.4%
FY13/3
775.0
(-0.7%)
s Decrease due to declining business
PCs, despite an increase in IT
demand, such as servers and software
-0.7%
+4.9%
3.9%
Operating
Income
32.7
▐ Sales
4.5%
35.0
30.7
FY14/3
▐ Operating Income 35.0
(+4.3)
r Improve due to integration effect from
NEC Fielding, Ltd. and sales increase
in servers and software
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 20
© NEC Corporation 2014
Forecasts
FY15/3
Others
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
685.7
▐ Sales
380.0
(-27.7%)
s Decrease due to deconsolidation
following sale of stock of NEC
BIGLOBE, Ltd. , etc.
-23.3%
Operating 525.9
Income
Ratio
380.0
2.5%
Operating
Income
/Loss
▐ Operating Income
-27.7%
- 0.3%
0.3%
-1.4
1.0
1.0
(+2.4)
r Improve due to improvement of the
mobile phone business and energy
business, despite impact from
deconsolidating businesses
16.9
FY13/3
FY14/3
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 21
© NEC Corporation 2014
Forecasts
FY15/3
Net Income Change ( Year on Year)
Public
Telecom Carrier
System Platform
Enterprise
Others
Adjustment
+14.4
+5.7
+4.3
+2.5
+2.4
-15.4
(Billions of Yen)
Decrease in provision for contingent loss,
and decrease in interest expenses
Increase in
non-operating
Increase in income/loss
+7.0
operating income
+13.8
FY14/3
Decrease in gain on sales of
subsidiaries and affiliates’ stocks
Others
-19.6
FY15/3
Forecast(*)
35.0
33.7
* Forecasts as of April 28, 2014
Page 22
© NEC Corporation 2014
Ⅲ. Progress on Mid-term Management Plan 2015
Mid-term Plan
2015
Mid-term Management Policy
(1) Focus on Solutions for Society
Transformation into a social value innovator
• Focusing of management resources on businesses that advance social infrastructure through ICT
• Create new business models with the understanding that social problems provide an opportunity
for growth
(2) Focus on Asia, promotion of “locally-led” business
Creation of a foundation for growth as a company able to
compete globally
•Focus on emerging and developing countries, particularly in Asia
•Realization of increased sensitivity to local needs, increased business speed
(3) Stabilize our financial foundation
• Enhanced cost competitiveness
• Creation of an earnings structure that produces operating income of 150 billion yen and free cash
flow of 100 billion yen
• Hybrid finance to ensure financial reserve
Achieve 5% in operating margin and 25% in international sales ratio
* Forecasts as of April 26, 2013
Page 24
© NEC Corporation 2014
Transition in Financial Results and Forecasts
Sales
Sale of NEC Mobiling, Ltd.
End new development
of Smartphones
NEC Electronics Corporation became
equity method company
3,583.1
PC for consumer use became
equity method company
3,115.4
3,036.8
3,071.6
Mid-term Plan
2015
(Billions of Yen)
YoY
Sale of NEC BIGLOBE, Ltd.
3,043.1
3,000.0
3,200.0
3 trillion yen
Sales from existing business
2,600.0
2,550.0
2,630.0
2,730.0
2,890.0
3,000.0
+approx.4%
+approx.6%
Operating Income
50.9
57.8
73.7
FY10/3
FY11/3
FY12/3
114.6
106.2
FY13/3
FY14/3
120.0
150.0
FY15/3
FY16/3
Forcast(*) （Mid-term
Plan）
* Forecasts as of April 28, 2014
Page 25
© NEC Corporation 2014
Topics Discussed by Management this Year
Mid-term Plan
2015
▐ Central areas in which the NEC group will concentrate as
sales remain at 3 trillion yen
▐ Corporate culture that will serve as a core for the NEC group
and its services for society for the next 100 years
▐ Corporate structure and operation process that will respond
to changes in market
▐ Global competitiveness that will
be an essential element demanded
by the market
Page 26
© NEC Corporation 2014
Achievements in FY14/3 and Next Steps
l
l
Executed investment in focus area
•
Invested in TOMS, SDN, big data and data centers
•
Acquired energy storage system business from A123 Systems, LLC.
Revised business portfolio
•
Achievements
l
l
Page 27
l
NEC Mobiling, Ltd., NEC BIGLOBE, Ltd. and discontinued mobile
phone business
Strengthened development, production and cost reduction
•
Carried out tender offer for NEC Fielding, Ltd.
•
Rebuilt software development, hardware development / manufacturing
and staff services subsidiaries
Accelerate to materialize growth plans
•
Next Steps
Mid-term Plan
2015
Secure sales growth in focus areas and international markets
Enhance efforts for improving profitability
•
Improve the profitability of international business, determine the course
for low profitability businesses and deliver business integration results
•
Accelerate measures to enhance cost competitiveness
© NEC Corporation 2014
Mid-term Plan
2015
Public Business Growth Strategies
▐ Secured orders in the social infrastructure domain
（Transportation, water, communications, urban development / industrial
parks, cyber security)
▐ Secured orders for national ID number related systems
Disaster prevention
system
Quasi-zenith
satellite system
（Taiwan, Philippines）
Air traffic control radar
（Taiwan, Nepal, Philippines）
Sewage pipe inspection robot
Field tests using actual sewage pipes
Large-scale plant failure
sign monitoring system
(Japan Sewage Works Agency, Funabashi City)
Accelerate mid and long term approach for growth
Page 28
© NEC Corporation 2014
Public Business Growth Strategies (Safety business)
▐
Mid-term Plan
2015
Launched Global Safety Division in Singapore,
established business operation structure on a global base
（April 2013）
l
▐
Total of 500 staff to execute business in regional competence centers in Singapore,
Argentina and China including safety team members in each country
Secured orders for facility surveillance （IVS）, communication security
system （TCS）, cyber security and facial recognition systems (FY14/3)
IVS ： Intelligent Video Surveillance
TCS ： Train Communication & Security System
Targeting 130% YoY business expansion in FY15/3
* Forecasts as of April 28, 2014
Page 29
© NEC Corporation 2014
Telecom Carrier Business Growth Strategies (TOMS)
▐
Mid-term Plan
2015
Demonstrated product competitiveness and global operational strength
l
Commercialized “TOMS 9.0” （OSS/BSS integrated solution)
•
l
Realized system construction / create addition functions in less time and lower cost
Expanded the new customer base after integration of Convergys’ BSS business
(over 250 customers in 58 countries worldwide)
•
Enhanced distribution for new customers such as utility business operators and customers of NEC’s locallyincorporated companies
Sales image
OSS : Network Operations Support Systems
FY13/3
FY14/3
FY15/3
Forecast(*)
BSS : Business Support Systems
Expand TOMS business centrally in NetCraker
* Forecasts as of April 28, 2014
Page 30
© NEC Corporation 2014
Network Business Growth Strategies (SDN)
▐
Mid-term Plan
2015
Enterprise / Public
l
Applied SDN to simplify existing complex networks,
for more simple, convenient networks
•
Expanded number of projects by capturing growing demand in enterprise network and Public field, such as
network for hospitals and transportation network
《Track record in FY14/3》 East Japan Railway Company （Tokyo station）
, Toyo Seikan Group Holdings, Ltd. tv asahi, Nippon Jimuki Co.,Ltd. ,etc.
l
▐
Partnership formed with Hewlett-Packard in the SDN field for Enterprise networks
Telecom Carrier
l
Drove the introduction of SDN for upgrading and automating network operation control
•
Promoted cooperative tests with leading global carriers that aim to introduce SDN (more than 10 companies),
and accelerate commercialization activities in preparation for full implementation in FY16/3
《 Track record in FY14/3 》
Activated commercial vEPC in Myanmar, first in the world
Drove corroborative trial with Telefónica for commercial use
Accelerate Enterprise, Public and Telecom Activities
Page 31
© NEC Corporation 2014
Smart Energy Business Growth Strategies
Mid-term Plan
2015
▐ Acquired “A123 Energy Solutions” a division that provides
energy storage systems for electric utility companies and
enterprises for approx. $100 million
Roll out to the global market and integrate energy storage systems and ICT
Page 32
© NEC Corporation 2014
Focusing investment in central fields for growth
Mid-term Plan
2015
▐ Placing highest priority on the international telecom carrier
field (SDN/Cloud), concentrating on the launch of big data
and cyber security as core differentiators of NEC’s
“Solutions for Society”
Sales Projects
Individual Projects
SDN
GSD, New business・・・etc.
BIG
DATA
Focusing
area
CLOUD
Big data, Cyber Security・・・etc.
Data center・・・etc.
Planning strategic investment of 15 billion yen,
almost twice the previous year
* Excluding the investment for each segment, Forecasts as of April 28, 2014
Page 33
© NEC Corporation 2014
Stabilize our Financial Foundation
Mid-term Plan
2015
▐ Funding through hybrid financing
l
Plan to repay existing interest-bearing liabilities and to finance business
operations
▐ Carried out tender offer for the share of NEC Fielding, Ltd.
l
Scheduled to become wholly owned company in Q2 FY15/3
▐ Reorganized 7 software development subsidiaries
l
Launched “NEC Solution Innovators, Ltd.” on April 1, 2014
▐ Reorganized 4 hardware development /
manufacturing subsidiaries
l
Launch a new company in July 2014
▐ Reorganized 4 staff services subsidiaries
l
Page 34
Launched “NEC Management Partner, Ltd.” on April 1, 2014
© NEC Corporation 2014
Mid-term Plan
2015
Review Business Portfolio
▐ Execute portfolio management putting
“Solutions for Society” at the center
NEC today
Enhancement of
service domains
• 2014 Information security
(Infosec Corporation.)
• 2014 Operation / Maintenance services
(NEC Fielding, Ltd. TOB)
(Movement in FY2013)
Discontinued businesses
IN
• 2014 Energy storage systems (A123
systems, LLC.)
Enhancement of
international bases
• 2013 Launched GSD
• 2013 Launched RBSC
• 2013 Launched NEC Laboratories Singapore
• 2013 Launched Naypyidaw office in Myanmar
• 2013 Launched smart city, cloud
services business enhancement company
in China
Consulting/operational
management services,
etc.
• 2013 Magneto-resistance sensor
business
• 2013 Mobile phone business
(End new development of
smartphones)
• 2013 Semiconductor business
(Exclude from equity
method company)
Increased focus on core ICT assets
Next-generation
network technologies
High-performance/high-reliability
core IT technologies
Diverse sensors and
human interface technologies
RBSC ： Regional Retail Business Support Center
Page 35
• 2013 Mobile sales business
(NEC Mobiling, Ltd.)
OUT
• 2013 Circuit substrate business
（Sale of stock, NEC Toppan
Circuit Solutions Inc.)
• 2014 Vehicle installation device
business
(sale of stock Honda Elesys
Co., Ltd.）
• 2014 Internet service business
（NEC BIGLOBE, Ltd.)
* as of April 28, 2014
© NEC Corporation 2014
Summary
Achieving the goals for FY15/3 is
a necessary step for realization of
the Mid-term Management Plan 2015
Accomplish the full-year forecast
for the third consecutive year
and assure stable dividends
* Forecasts as of April 28, 2014
Page 36
© NEC Corporation 2014
Page 2011
37
© NEC Corporation
© NEC Corporation 2014
Financial Results for FY14/3 (Appendix)
Results for FY14/3 by Segment ( three-year transition )
Results
FY14/3
(Billions of Yen)
Net Sales
Operating Income/Loss
114,6
106.2
3,036.8
Public
Enterprise
Telecom
Carrier
System
Platform
649.5
3,071.6
680.7
222.2
251.6
659.3
709.3
711.0
744.4
3,043.1
738.4
272.3
725.8
780.8
73.7
Public
Enterprise
Telecom
Carrier
System
Platform
Others
Adjustment
Others
Page 39
794.9
685.7
525.9
FY12/3
FY13/3
FY14/3
5.5
43.3
0.5
71.6
58.6
6.5
60.3
54.6
32.7
13.8
10.4
- 48.8
FY12/3
© NEC Corporation 2014
49.0
16.9
30.7
- 1.4
- 61.0
- 48.6
FY13/3
FY14/3
Results
FY14/3
Financial Results for FY14/3 by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
Operating Income
for FY14/3
Public
Others
106.2
24%
17%
Enterprise
Sales for
FY14/3
9%
Public
Telecom
Carrier
58.6
60.3
System
Platform
3,043.1
30.7
System Platform
Enterprise
26%
6.5
-1.4
Telecom Carrier
24%
Page 40
Others
© NEC Corporation 2014
Results
FY14/3
Sales Change (Year on Year)
(Billions of Yen)
Japan: Decreased from the previous fiscal
year, where there was strong demand
International: Increased mainly in TOMS
Steady sales from the
retail and services industries
Telecom Carrier
+16.5 (+2.3%)
System Platform
+36.4 (+4.9%)
Decreased in mobile phone shipments
Deconsolidation of
NEC Mobiling, Ltd. and
the electronic
components business
Enterprise
+20.7 (+8.2%)
Others
-159.8
FY13/3
3,071.6
FY14/3
3,043.1
Public
+57.7 (+8.5%)
Steady sales from government
and public areas
Page 41
Increased mainly in business PCs,
despite impact of large-scale projects
in the previous fiscal year
© NEC Corporation 2014
Results
FY14/3
Operating Income Change (Year on Year)
(Billions of Yen)
Improved due to sales increase,
despite investment in infrastructure
for the retail and logistics industries
Enterprise
+1.1
Decreased due to the acceleration of investment in SDN, etc.,
and temporary profit related to intellectual property
in the previous fiscal year
Telecom Carrier
-11.2
FY13/3
Worsening of project mix
System Platform
-2.0
The impact of LCD patent sales
114.6
in the previous fiscal year, decreased sales
Public
+9.6
Others
-18.3
Sales Increase
Deconsolidation of NEC Mobiling, Ltd.
and the electronic components business
Ongoing cost reduction
and optimization
Page 42
© NEC Corporation 2014
Adjustment
+12.4
FY14/3
106.2
Results
FY14/3
International Sales
(Billions of Yen)
Greater
China,
APAC
7.9%
EMEA
4.2%
The
Americas
6.6%
Japan
81.3%
203.0
239.5
180.6
72.5
99.6
127.4
Q4
55.0
9
months
147.9
202.3
49.9
Q4
46.0
9
months
134.6
35.5
Q4
27.4
9
months
72.2
FY13/3
91.9
FY14/3
FY13/3
167.0
FY14/3
FY13/3
Q4 <January to March>
FY13/3
FY14/3
YoY
Actual
Actual
International sales
％ to Net Sales
128.4
157.8
14.2%
16.4%
22.9%
FY13/3
Actual
483.1
15.7%
152.5
FY14/3
Full year
FY14/3
Actual
569.2
YoY
17.8%
18.7%
* Sales are classified by country or region based on customer locations.
The rates of circle graphs are calculated by full year.
Page 43
© NEC Corporation 2014
Results
FY14/3
Financial Position Data
(Billions of Yen)
End of March End of March
2013
2014
2,581.0
2,505.3
-75.6
Net Assets
836.1
767.7
-68.5
Interest-bearing debt
603.5
575.2
-28.3
Shareholders' Equity
710.7
695.9
-14.7
Total Assets
Equity ratio(%)
27.5%
27.8%
0.3pt
D/E ratio (times)
0.85
0.83
0.02pt
Net D/E ratio (times)
0.57
0.53
0.04pt
197.1
206.6
Cash and cash equivalents
Page 44
Difference
from March
2013
© NEC Corporation 2014
9.5
Results
FY14/3
<Ref.> Balance Sheets (At the end of March, 2014)
(Billions of Yen)
Total Assets 2,505.3
(-75.6)
Liabilities
1,737.7
Current Assets
1,502.9
-7.2
-10.9
Noncurrent Assets
1,002.4
-64.7
-68.5
Decreased in prepaid pension cost owing to the
application of new accounting standards for retirement
benefit, despite an increase from the acquisition
of trust beneficially rights set to land and buildings
Page 45
<Compared to end of March 2013>
Compared to
end of March
2013
Decreased in bonds and
commercial papers, despite an
increase in long-term debt due
to financing through hybrid
finance （subordinated loan） and
an increase in net defined
benefit liability
Net Assets
767.7
Recorded remeasurements of defined
benefit plans ( -60.7)
and a decrease in minority interests
© NEC Corporation 2014
Financial Forecasts for FY15/3 (Appendix)
Forecasts
FY15/3
Financial Forecasts by Segment (three-year transition)
(Billions of Yen)
Net Sales
3,071.6
Public
680.7
Enterprise
251.6
Telecom
Carrier
System
Platform
Others
709.3
744.4
Operating Income/Loss
120.0
114.6
3,043.1
738.4
272.3
725.8
780.8
3,000.0
800.0
106.2
Public
49.0
Enterprise
5.5
Telecom
Carrier
275.0
71.6
73.0
58.6
9.0
6.5
66.0
60.3
770.0
System
Platform
32.7
Others
16.9
Adjustment
- 61.0
30.7
- 1.4
- 48.6
FY13/3
FY14/3
775.0
685.7
525.9
380.0
FY13/3
FY14/3
FY15/3
Forecasts(*)
35.0
1.0
- 64.0
FY15/3
Forecasts(*)
* Forecasts as of April 28, 2014
Page 47
© NEC Corporation 2014
Forecasts
FY15/3
Financial Forecasts for FY15/3 by Segment
(Billions of Yen)
Net Sales
Operating Income
Others
Public
12%
27%
Telecom
Carrier
Public
73.0
66.0
Operating Income
Forecast for FY15/3
120.0
Enterprise
9%
Sales Forecast
for FY15/3
System
Platform
35.0
3,000.0
Enterprise
System Platform
9.0
26%
Others
1.0
Telecom Carrier
26%
* Forecasts as of April 28, 2014
Page 48
© NEC Corporation 2014
Forecasts
FY15/3
Sales Change (Year on Year)
(Billions of Yen)
Japan: Remain same level
International: Increase mainly in TOMS／
SDN, mobile backhaul
Decrease from a decline in business PCs,
despite an increase in IT demand such as servers
Telecom Carrier System Platform
+44.2 (+6.1%)
-5.8 （-0.7%）
Steady sales from the manufacture
Decrease in mobile phone shipments
Enterprise
+2.7 (+1.0%)
Deconsolidation of
NEC BIGLOBE, Ltd. and
NEC Mobiling, Ltd.
Others
-145.9
FY14/3
3,043.1
Public
+61.6 (+8.3%)
FY15/3
Forecast*
3,000.0
Steady sales from government
and public areas
* Forecasts as of April 28, 2014
Page 49
© NEC Corporation 2014
Forecasts
FY15/3
Operating Income Change (Year on Year)
Deconsolidation of NEC BIGLOBE, Ltd. and NEC Mobiling, Ltd.
Improve from mobile phone business and Energy business
Improve due to Integration effect
of NEC Fielding, Ltd.
and sales increase from servers
Strategic investment
increase
Adjustment
-15.4
System Platform
+4.3
Improve from sales increase
Others
+2.4
Enterprise
+2.5
(Billions of Yen)
FY15/3
Forecast*
120.0
Telecom Carrier
+5.7
FY14/3
106.2
Public
+14.4
Improve due to sales
increase mainly in
international business
Improve due to sales increase,
cost reduction and fewer
loss-making projects
* Forecasts as of April 28, 2014
Page 50
© NEC Corporation 2014
Forecasts
FY15/3
Capital Expenditure, Depreciation and R&D expenses
(Billions of Yen)
FY13/3
FY14/3
Actual
Actual
YoY
FY15/3
YoY
YoY
Forecasts
Capital Expenditure
45.6
*
40.8
-10.5%
50.0
22.5%
Depreciation
51.2
*
45.2
-11.7%
50.0
10.7%
142.7
-5.9%
150.0
5.1%
151.7
R&D expenses
% to Net Sales
4.9%
4.7%
5.0%
* Not including acquisition of trust beneficiary rights
Capital Expenditure
50.0
45.6
40.8
Depreciation
51.2
45.2
R&D expenses
50.0
151.7
150.0
142.7
+5.1%
+10.7%
＋22.5％
％ to Net
Sales
4.9%
FY13/3
FY14/3
FY15/3
Forecast(*)
FY13/3
FY14/3
FY15/3
Forecast(*)
FY13/3
4.7%
FY14/3
5.0%
FY15/3
Forecast(*)
* Forecasts as of April 28, 2014
Page 51
© NEC Corporation 2014
Progress on Mid-term Management Plan 2015 (Appendix)
Mid-term Plan
2015
Results, Forecasts and Mid-term Management Plan by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
150.0
120.0
3,200.0
3,071.6
3,000.0
680.7
Public
Enterprise
Telecom
Carrier
251.6
709.3
System
Platform
744.4
3,043.1
735.0
738.4
255.0
272.3
715.0
705.0
725.8
3,000.0
100.0
780.0
800.0
300.0
275.0
Public
49.0
Enterprise
5.5
770.0
71.6
System
Platform
Others
16.9
800.0
Adjustment
685.7
590.0
FY13/3 FY14/3
(initial plan)
525.9
380.0
FY14/3 FY15/3
Forecasts(*)
73.0
57.0
58.6
6.0
6.5
60.0
60.3
- 61.0
<4%>
<10%>
66.0
<5%>
32.7
775.0
Others
106.2
9.0
Telecom
Carrier
800.0
780.8
<Operating Income ratio>
<8%>
114.6
30.7
35.0
2.0
- 1.4
1.0
- 54.0
- 48.6
29.0
<4%>
- 64.0
520.0
FY16/3
FY13/3 FY14/3 FY14/3
(Mid-term Plan)
(initial plan)
FY15/3
FY16/3
Forecasts(*)
(Mid-term Plan)
* Forecasts as of April 28, 2014
Page 53
© NEC Corporation 2014
Mid-term Plan
2015
Focus on Solutions for Society
Space
l
l
Start construction of the Japan Trench undersea earthquake
tsunami observation network
Won SEA-ME-WE 5 Contract to strengthen ultra-broadband
undersea connectivity between Singapore and France
l
Contribute to JAXA’s “Hisaki (SPRINTPlanet Observatory for Recognition
A*)” launch *ofSpectroscopic
Interaction of Atmosphere
l
Develop failure sign monitoring
system for large-scale plants Important
Seafloor
Seafloor
BIG
DATA
facilities
Order receipt of communication unit of
Energy
smart meter, for TEPCO
l Start energy service for households through
a battery rental model
Energy
l
l
Delivery of large capacity Lithium-ion
battery storage system for Enel
Energy
l
Acquired energy storage systems business
of A123 Systems, LLC.
Communications
l
Build ICT systems for stadiums in Brazil
l
Provide urban surveillance solution for
the province of Santa Fe, Argentina
Important
facilities
Released TOMS9.0
n
Released NEC SDN Solutions
Companies
Communications
Enhanced
Companies
Collaborate with HP at Networking Solutions Enhanced
for Enterprise customers in SDN field
Companies
Build a common station network utilizing SDN at Tokyo
Companies
Station, for JR East.
n
Important
facilities
l
l
Delivery of “Field Communication System”
to Ground Self-Defense Force
n
Launched ‘Cyber Security Strategy Office’
n
Established “National ID Business Promotion Department”
Page 54
n
SDN
Enhanced
Government
Enhanced
l
Integrate fire emergency digital radio and common fire
command systems in Chiba, Japan
Fire Departments
l
Order receipt related to the national ID number system
Enhanced
© NEC Corporation 2014
Government
Mid-term Plan
2015
Focus on Asia: Promotion of “Locally-led” Business
Government
l
Strategic partnership with Chongqing City for smart city
and cloud development
l
Integrated mission-critical systems for
Hotel New Otani Chang Fu Gong,
Beijing, China
CLOUD
CLOUD
Government
Companies
l
Won order for cloud-based disaster and
emergency information system in Taiwan
l
Integrate common back-up system for bank
Banks
accounting systems in Taiwan
l
Provide air traffic control radar for Taiwan's Air
Navigation and Weather Services Airports
Communications
l
Construction for communication
infrastructure in Myanmar
l
Order receipt for supply of airport/aviation security
infrastructure in Myanmar
SDN
Airports
l
Order receipt of IT infrastructure construction
project, for State Bank of Vietnam
Banks
Retail
n
Launched RBSC in Malaysia
l
Support HALALINK’s expansion throughout
Malaysia by providing headquarter systems
Retail
and convenience store systems
l
l
Page 55
Enhanced
n
Launched “Global Safety
Division” in Singapore
n
Launched
Enhanced
NEC Laboratories Singapore
Enhanced
l Joined “Singapore Safe City
Test Bed”
l
Selected by CP ALL, operator of approximately 7,500
7-Eleven stores in Thailand to provide next-generation
Retail
POS terminals
Selected by the Civil Aviation Authority of Nepal to
support modernization of the nation's international airport
l
Airports
© NEC Corporation 2014
Won Wide-area disaster prevention
Government
system in Philippines
Won country-wide cable
system in Indonesia
Seafloor
Realization of a stable financial foundation
▐
▐
Expansion of global Supply Chain Management (SCM) system
l
Strengthen and optimize product organization (Reorganize 4 hardware development
and product subsidiaries)
l
Global optimization of logistics network ( Launched “Nittsu NEC Logistics, Ltd.” In
December)
l
Construction activities for SCM framework combining the 5 RHQ and facilities in Japan
Increased use of offshore resources
l
▐
（Enhancement of cost Competition）
Mid-term Plan
2015
Greater use of development facilities in India
Further reduction of Group indirect costs
l
Driving expense management activities on a company-wide level
(Centralized group management of important commodities, reorganize staff services
subsidiaries)
▐
Realization of further efficiency in cost of quality
l
Through execution of risk analysis, countermeasure planning and project management
execution
RHQ ： Regional Headquarter
Page 56
© NEC Corporation 2014
Mid-term Plan
2015
Free Cash Flow
(Billions of Yen)
▐ Reliably generate over 100 billion plus yen per year
200
150
Operating Cash Flow
143.7
Restructuring
expenses
94.1
100
55.2
Free Cash Flow
42.0
50
0
M&A expenses
Sale of stock
Fund for Renesas
Electronics Corp.
(50)
(100)
(150)
-38.9
Investing Cash Flow
-101.7
FY13/3
FY14/3
Acquisition of trust
beneficially rights
Sale of NEC Mobiling, Ltd.
and NEC BIGLOBE, Ltd.
Tender offer for
NEC Fielding, Ltd.
FY15/3 Forecast(*)
* Forecasts as of April 28, 2014
Page 57
© NEC Corporation 2014
Reference (Financial data)
Net Sales, Operating Income/Loss
(Billions of Yen)
8.1%
8.6%
6.8%
4.8%
Operating Income Ratio 3.4%
3.0%
3.3%
3.4%
- 1.2%
- 2.9%
- 1.2%
- 3.4%
924.6
Net Sales
774.1
669.1
959.6
901.8
816.3
-0.1%
722.0
669.0
+5.4%
631.5
-3.4%
743.0
-2.5%
640.1
-9.0%
+7.9%
-7.2%
+0.2%
42.8
24.4
Q3
22.2
Q4
Q1
23.4
-21.8
-7.9
<Jul-Sep> <Oct-Dec> <Jan-Mar>
FY12/3
Page 59
82.5
55.2
-8.2
Q2
+1.4%
75.2
-19.4
Q1
-3.0%
-5.6%
Operating
Income/
Loss
26.2
<Apr-Jun>
+6.4%
700.4
Q2
Q3
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
YoY
International Sales
(Billions of Yen)
20.5%
International Sales Ratio
17.9%
YoY
18.9%
16.7%
16.3%
19.7%
16.8%
15.4%
17.2%
International Sales
115.1
+7.7%
136.2
12.8%
108.9
121.1
118.7
128.4
138.2
120.8
+11.8%
+22.9%
+14.1%
-1.9%
+8.1%
-0.1%
+0.8%
152.3
14.2%
138.8
16.4%
157.8
97.4
+11.2%
+24.0%
-7.4%
-15.4%
Q1
<Apr-Jun>
Q2
Q3
FY12/3
Page 60
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
Q1
Q2
Q3
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
Sales, Operating Income/Loss (Public)
11.4%
10.1%
8.8%
7.9%
0.3%
0.1%
9.8%
271.0
254.5
245.4
Operating Income Ratio
8.0%
(Billions of Yen)
5.9%
3.6%
- 1.7%
10.7%
+6.5%
+3.7%
176.7
162.0
158.2
Net Sales
149.2
132.8
114.9
113.0
126.6
+2.4%
Q3
17.6
8.9
4.7
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
FY12/3
Page 61
14.2
0.1
Q2
26.5
+10.1%
14.3
-1.9
Q1
+9.9%
25.8
+1.7％
<Apr-Jun>
+9.1%
+12.3%
28.0
Operating
Income/ 12.5
Loss
164.0
Q1
0.4
Q2
Q3
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
YoY
Sales, Operating Income/Loss (Enterprise)
(Billions of Yen)
7.8%
7.4%
6.7%
4.5%
YoY
4.4%
- 1.2%
Operating Income Ratio
0.3%
- 0.3%
- 2.9%
68.7
+18.9%
50.9
73.7
68.8
57.9
Net Sales
- 4.1%
- 5.3%
- 6.0%
59.0
+7.2%
81.5
71.3
58.7
+3.7%
50.0
44.7
+10.7%
+2.8%
+17.4%
+16.1%
60.7
+12.1%
Operating
Income/
Loss
-2.7
Q1
<Apr-Jun>
5.4
-0.7
Q2
FY12/3
Page 62
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
Q1
3.3
0.2
-2.7
-1.5
Q3
4.6
Q2
Q3
-2.4
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
6.0
3.1
-0.2
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
Sales, Operating Income (Telecom Carrier)
(Billions of Yen)
15.1%
9.7%
8.3%
13.0%
11.3%
7.7%
10.8%
8.2%
6.0%
7.2%
3.6%
1.3%
Operating Income Ratio
219.0
193.8
Net Sales
169.6
156.9
200.3
187.5
180.0
166.3
155.1
+10.6%
138.9
+3.3%
-4.0%
17.9
13.8
12.7
9.4
Q1
Q2
Q3
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
FY12/3
Page 63
12.4
5.6
1.8
<Apr-Jun>
28.5
22.7
18.2
Operating
Income 14.1
+3.8%
-0.7%
29.3
+9.4%
154.0
+6.0%
+11.7%
172.7
Q1
Q2
Q3
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
YoY
Sales, Operating Income/Loss (System Platform)
(Billions of Yen)
9.8%
8.6%
8.0%
6.6%
4.3%
4.3%
1.9%
2.5%
- 1.1%
- 3.2%
- 3.8%
- 4.2%
244.3
Operating Income Ratio
215.7
209.9
204.1
193.1
182.9
Net Sales
165.2
163.1
+11.6%
167.3
-2.7%
157.7
147.2
+1.3%
+10.8%
-5.4%
185.7
+11.0%
-3.3%
21.2
Operating
Income/
Loss
Q1
Q2
-1.8
-5.2
Q3
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
FY12/3
Page 64
8.4
4.2
-5.6
<Apr-Jun>
20.9
16.8
13.5
3.4
Q1
+16.4%
8.0
-6.6
Q2
Q3
Q4
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
YoY
Sales, Operating Income/Loss (Others)
(Billions of Yen)
10.8%
6.7%
5.4%
4.9%
Operating Income Ratio
0.8%
0.1%
- 1.0%
0.7%
- 1.6%
- 2.4%
Net Sales
- 6.2% - 6.9%
225.4
205.4
200.9
193.8
163.2
180.1
163.4
-5.7%
148.4
143.1
+10.4%
121.8
-18.7%
-34.2%
143.7
117.3
-3.5%
-1２.1%
-37.2%
Operating
Income/
Loss
21.0
10.2
-1.6
0.2
Q1
<Apr-Jun>
Q2
Q3
1.6
Q4
<Jul-Sep> <Oct-Dec> <Jan-Mar>
FY12/3
Page 65
-34.9%
9.7
9.6
-3.6
Q1
-10.1
Q2
Q3
Q4
-9.9
Q1
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY13/3
© NEC Corporation 2014
-2.0
Q2
<Jul-Sep>
0.8
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY14/3
YoY
Exchange Rate
(Yen)
145
Euro/Yen Exchange Rate (Actual)
140
Assumed Exchange Rate
135
130
Average Exchange Rate ¥132.83
125
120
115
110
Dollar/Yen Exchange Rate (Actual)
105
Assumed Exchange Rate
100
95
Average Exchange Rate ¥99.61
90
85
4/1
Page 66
4/30
5/31
6/28
7/31
8/30
9/30
10/31
© NEC Corporation 2014
11/29
12/31
1/31
2/28
3/31
Stock Price
(Yen)
17,000
April 26:FY13/3
Earnings Release
360
March 13： Public Business Briefing
16,500
ＮＥＣ
the Nikkei Stock
16,000
15,500
July 31: Q1 Earnings
Release
15,000
340
October 22: Telecom Carrier
Business Briefing
320
300
14,500
14,000
280
13,500
October 30: Q2
Earnings Release
13,000
260
January 30: Q3
Earnings Release
12,500
240
12,000
220
11,500
11,000
Page 67
June 24:Ordinary General
Meeting of Shareholders
4/1
4/30
5/31
December 3:
R&D Briefing
July 10: SDN Briefing
6/28
7/31
8/30
9/30
© NEC Corporation 2014
10/31
11/29
12/30
1/31
2/28
3/31
200
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,"
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also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking
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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)
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movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of
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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
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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.