Financial Results for Fiscal Year Ended March 31, 2012 April 27, 2012 NEC Corporation (http://www.nec.co.jp/ir/en) Index I. Financial Results for FY12/3 II. Progress on Restructuring III. Management Policy for FY13/3 <Ref> Revision of Business Segments Financial Results for FY12/3 (Appendix) Financial Forecasts for FY13/3 (Appendix) Reference (Financial data) Page 2 © NEC Corporation 2012 I. Financial Results for FY12/3 Results FY12/3 Summary of Financial Results for FY12/3 ▐ Exceeded operating income forecast while sales fell short (Billions of Yen) Net Sales Operating Income % to Net Sales Ordinary Income % to Net Sales Net Loss FY12/3 Actual Actual 3,115.4 3,036.8 - 2.5% -63.2 57.8 73.7 15.9 3.7 42.0 7.1 -97.7 -10.3 146.7 34.2 YoY 1.9% 2.4% 0.0 42.1 0.0% 1.4% -12.5 % to Net Sales FCF -110.3 - -112.6 - 34.2 (Ref): Average exchange rate for FY12/3 1$= ¥79.03, 1€= ¥109.43 (Average exchange rate for FY11/3 1$= ¥86.45, 1€=¥113.83) Page 4 Difference from Jan 26 FY11/3 © NEC Corporation 2012 Results FY12/3 Results for FY12/3 by Segment (Billions of yen) Net Sales Operating Income/Loss 3,583.1 3,115.4 IT Services Platform Carrier Network Social Infrastructure Personal Solutions 866.3 804.2 373.7 627.4 375.8 316.6 605.4 737.7 318.8 766.5 Others 53.2 816.9 Carrier Network 31.3 633.0 330.4 57.8 39.5 21.4 8.9 5.2 40.7 Social Infrastructure Personal Solutions 189 - 1.7 Others - 44.9 Eliminations/ Unclassifiable expenses - 27.5 14.6 7.3 - 1.9 - 33.2 661.0 244.7 223.2 FY11/3 FY12/3 56.1 21.7 Platform 661.4 FY10/3 Page 5 IT Services 372.4 73.7 50.9 3,036.8 FY10/3 © NEC Corporation 2012 FY11/3 16.2 1.0 7.1 - 51.4 FY12/3 Results FY12/3 Sales Change (Year on Year) (Billions of Yen) Difference from Jan 26 Increase in social systems such as broadcasting, fire and disaster prevention -4.6 Increase in four key businesses -47.0 Carrier Network +27.5 (+4.5%) Social Infrastructure +11.6 (+3.6%) Personal Solutions -105.5 (-13.8%) FY11/3 3,115.4 -14.0 FY12/3 3,036.8 Platform -3.4 (-0.9%) -2.7 <Impact of flood> 6.0 IT Services +12.7 (+1.6%) Decline due to an impact of flood in Thailand mainly in hardware business Others -21.5 -63.2 <Impact of flood> 20.0 -1.8 Deconsolidation of LCD module business and impact of flood in Thailand in electronic component business +6.9 Increase in central and local governments, medical and manufacturing sectors Page 6 Deconsolidation of consumer PC business © NEC Corporation 2012 <Impact of flood> 9.0 Results FY12/3 Operating Income/Loss Change (Year on Year) (Billions of Yen) Streamline R&D and cost reduction Difference from Jan 26 Sales increase in Japan and submarine cable systems Sales increase, cost reduction and controlling loss-making projects +3.5 +1.1 Carrier Network +15.4 Impact of flood in Thailand +0.0 Others -0.2 Personal Solutions +2.9 Social Infrastructure +1.6 IT Services +18.1 Sales increase and cost reduction FY11/3 57.8 Platform -3.6 3.0 +2.1 Increase in investment costs Eliminations/ Unclassifiable expense -18.2 FY12/3 73.7 +3.7 -1.8 +0.2 <Impact of flood> Decrease in sales, increase in cost caused by flood in Thailand 8.0 <Impact of flood> 4.0 Page 7 © NEC Corporation 2012 <Impact of flood> -1.4 Key Points of FY12/3 by Segment (Year on Year) IT Services Results FY12/3 Increase in central and local governments, medical and manufacturing sectors Improvement by sales increase, cost reduction and controlling loss-making projects Platform Decline due to an impact of flood in Thailand mainly in hardware business Decrease due to a drop in sales and increase in cost caused by flood in Thailand Carrier Network Increase in four key business areas (WBA, MBH, submarine cable systems and service & management) Higher profits from solid sales in Japan and submarine cable systems Social Infrastructure Personal Solutions Others Increase in social systems such as broadcasting, fire and disaster prevention Improvement due to sales increase in social systems and cost reductions Decrease due to deconsolidation of consumer PC business Improvement due to streamlining R&D expenses and cost reductions Decrease due to deconsolidation of LCD module business and impact of flood in Thailand in electronic component business Decrease due to an impact of flood in Thailand despite cost efficiency measures WBA : Wireless Broadband Access (LTE, Femtocell etc) MBH : Mobile Backhaul Page 8 Note: First bullet refer to changes in sales, second bullet refer to changes in operating income/loss © NEC Corporation 2012 Results FY12/3 Net Income/Loss Change (Year on Year) (Billions of Yen) Difference from Jan 26 Restructuring expenses Equity in losses of affiliates +25.8 FY11/3 Improvement in non-operating income/loss +26.1 +3.4 Others -139.8 FY12/3 -110.3 Improvement in operating income +15.9 +3.7 IT Services +18.1 Carrier Network +15.4 Platform -3.6 Eliminations/unclassifiable expenses -18.2 Page 9 (FY11/3 : 15.5 ⇒ FY12/3 : 40.5) Loss on valuation of investment securities -11.7 Income taxes etc -117.0 -17.3 -12.5 © NEC Corporation 2012 -25.1 Results FY12/3 Challenges ▐ Revised Downward Initial Forecasts for FY12/3 Net Loss and No Dividend for the second consecutive year Lack of competitiveness in smartphones Mobile Terminal Shipment for FY/12/3 : 7.4 million units (forecast as of May 2011) → 4.2 million units (result) Worsened business performance in Platform and Electronic components due to flood in Thailand Decreased by 20.0B Yen Sales and 8.0B Yen Operating Income Revised 70.0B Yen Deferred Tax Assets Posted 40.5B Yen Restructuring Expenses in Extraordinary Loss ▐ Formulate Next Mid-Term Growth Plan Focus on growth drivers such as 3 key segments (IT Services, Carrier Network, and Social Infrastructure) and energy business Create framework starting from 1H FY13/3 Continue to focus on key areas such as cloud, global and new businesses Page 10 © NEC Corporation 2012 II. Progress on Restructuring NEC’s Management Policy ▐ Immediate improvement of macro economy and market environment cannot be expected ▐ We will shift to conduct efficient business operations to generate constant profit based on current sales level Execute management reforms to revive the NEC Group Focus investment in the key business areas to establish firm foundation toward growth “ＣＳ ＮＯ.１” “Ｇｌｏｂａｌ Ｆｉｒｓｔ” “Ｏｎｅ ＮＥＣ” Page 12 © NEC Corporation 2012 Summary of Management Reforms (announced on Jan 26) ▐ Implementation of restructuring measures and reforms to generate cash flow as a business entity Change to business structure with high profitability • Restructuring in businesses that require immediate reform • 10,000 Headcount reduction Japan:7,000 (incl. external resources) Overseas:3,000 (in accordance with the review of manufacturing operations) Reforms to generate cash flow as a business entity • Focus on IT Services, Carrier Network and Social Infrastructure leveraging our competitive advantage • Establish vertically integrated business structure in energy business *Forecasts as of Jan 26, 2012 Page 13 © NEC Corporation 2012 Restructuring Progress on Business Restructuring ▐ Mobile Terminal ＜Effect of Restructuring＞ +11.0B Yen Utilize offshore JDM （Joint Design Manufacturer） 〈2H FY13/3〉 Streamline resources for development and manufacturing operations 〈by Sep〉 ▐ Platform ＜Effect of Restructuring＞ +6.0B Yen Streamline administrative staff divisions, hardware development and manufacturing 〈by Sep〉 ▐ NEC TOKIN Restructuring of capacitor business (Establish new plant in Thailand) • Headcount reduction Overseas : 2,700 〈already reduced in February〉 • Capital and business alliance with KEMET Corporation of U.S. 〈announced in Mar〉 NEC Tokin will be an equity method company from Q2 of FY13/3 *Forecasts as of Apr 27, 2012 Page 14 © NEC Corporation 2012 Progress on Expenses Restructuring Restructuring ＜Effect of Restructuring＞ +40.0B Yen 1. Business Restructuring ＜Effect of Restructuring＞ +20.0B Yen 2. Streamline Corporate staffs <by Sep> 3. Reduction of External Resources <by Sep> 4. Immediate Cost Reductions * under discussion with labor union ＜Effect of Restructuring＞ +4.0B Yen ＜Effect of Restructuring＞ +16.0B Yen Reduction of monthly salary at all levels of employees in Japan • Top management : 40%-10% reduction 〈from Feb- 〉 • Middle management : 7%-5% reduction 〈from Apr- 〉 • Employees : 4% reduction 〈from Apr to Dec〉 Reducing overtime charges to legal standard Suspension of subsidizing welfare programs and for "Health and Welfare Foundation"(1 year) *Forecasts as of Apr 27, 2012 Page 15 © NEC Corporation 2012 III. Management Policy for FY13/3 Forecasts FY13/3 Summary of Financial Forecasts for FY13/3 ▐ Focus on restructuring and global business expansion in 3 key segments and energy business (Billions of Yen) 1H(April to September) Net Sales Operating Income % to Net Sales Ordinary Income/Loss FY12/3 FY13/3 Actual Forecasts(*) FY12/3 FY13/3 Actual Forecasts(*) YoY 1,400.0 - 3.0% 3,036.8 3,150.0 3.7% 6.8 1.0 -5.8 73.7 100.0 26.3 0.5% 0.1% -10.4 -11.0 -5.6 - -24.0 - -4.23 2.4% -16.0 - % to Net Sales Net Income/Loss per Share (Yen) YoY 1,443.2 % to Net Sales Net Income/Loss Full Year 42.1 -110.3 - -9.24 70.0 1.4% -13.0 -42.44 28.0 2.2% 20.0 - -5.01 3.2% 130.3 0.6% 7.70 50.14 Note: Average exchange rates for FY13/3: 1$= ¥75, 1€= ¥100 *Forecasts as of Apr 27, 2012 Page 17 © NEC Corporation 2012 Forecasts FY13/3 Financial Forecasts for FY13/3 by Segment (Billions of yen) Net Sales Operating Income/Loss 100.0 IT Services 3,115.4 3,036.8 804.2 816.9 3,150.0 73.7 57.0 57.8 39.5 15.0 5.2 Platform 21.4 8.9 Carrier Network 40.7 855.0 IT Services Platform Carrier Network Social Infrastructure Personal Solutions Others 375.8 605.4 318.8 766.5 372.4 633.0 330.4 400.0 725.0 Social Infrastructure Others 375.0 Personal Solutions 661.0 610.0 244.7 223.2 185.0 FY11/3 FY12/3 FY13/3 Forecasts(*) 14.6 7.3 - 1.9 - 33.2 61.0 56.1 16.2 1.0 7.1 - 51.4 Eliminations/ Unclassifiable expenses FY11/3 FY12/3 19.0 10.0 8.0 - 70.0 FY13/3 Forecasts(*) *Forecasts as of Apr 27, 2012 Page 18 © NEC Corporation 2012 Forecasts FY13/3 Sales Change (Year on Year) Increase in fire and disaster prevention business in addition to solid execution of large-scale projects Increase mainly in global business such as services & management, submarine cable systems (Billions of Yen) Deconsolidation of consumer PC business (Sales for 1Q, FY12/3) Social Infrastructure Personal Solutions +44.6 (+13.5%) -51.0 (-7.7%) FY13/3 Forecast (*) Carrier Network +92.0 (+14.5%) 3,150.0 Increase mainly due to large-scale projects Platform +27.7 (+7.4%) Others -38.2 FY12/3 3,036.8 Decrease due to deconsolidation of electronic component business, despite increase in energy business IT Services +38.1 (+4.7%) Increase in manufacturing, telecom and finance sectors Page 19 © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Forecasts FY13/3 Operating Income/Loss Change (Year on Year) (Billions of Yen) <Effect of Restructuring> +13.0 <Effect of Restructuring> Effect of restructuring in mobile terminal business +5.0 Expect to increase from sales expansion despite making an investment for future growth Carrier Network +4.9 <Effect of Restructuring> +6.0 Expect to increase from sales expansion and steady execution of restructuring FY12/3 73.7 Platform +9.8 Personal Solutions +9.0 Improve due to the effect of Restructuring despite making an investment for future growth Others +0.9 <Effect of Restructuring> +5.0 FY13/3 Forecast (*) 100.0 Social Eliminations/ Infrastructure Unclassifiable +2.8 expenses -18.6 Increase in investment costs <Effect of Restructuring> IT Services +17.5 +40.0 <Effect of Restructuring> +3.0 <Effect of Restructuring> +8.0 Improve by sales expansion and the effect of restructuring Page 20 Improve due to sales increase, cost reduction and effect of restructuring despite making an investment for future growth © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Key Points of FY13/3 Forecasts by Segment IT Services (Year on Year) Forecasts FY13/3 Increase in manufacturing, telecom and finance sectors Improve by sales expansion and the effect of restructuring Platform Increase mainly due to large-scale projects Expect to increase from sales expansion and steady execution of restructuring Carrier Network Increase mainly in global business such as services & management, submarine cable systems Expect to increase from sales expansion despite making an investment for future growth Social Infrastructure Increase in fire/disaster prevention business and solid execution of large-scale projects Improve due to sales increase, cost reduction and effect of restructuring despite making an investment for future growth Personal Solutions Others Decrease due to deconsolidation of consumer PC business Improve due to the effect of restructuring mainly in mobile terminal business Decrease due to deconsolidation of electronic component business, despite increase in energy business Improve due to the effect of restructuring despite making an investment for future growths Note: First bullet refer to changes in sales, second bullet refer to changes in operating income/loss Page 21 © NEC Corporation 2012 Focus investment in key business areas ▐ Expansion of Global Business in Carrier Network Acquisition of BSS business of U.S. based Convergys <Announced in March, To be completed by 1Q of FY13/3> ▐ Expansion of Energy Business Sales launch of home energy storage system <Announced in March> Execute 20 billion yen investment to strengthen business incubation, global business, and energy business *Forecasts as of Apr 27, 2012 Page 22 © NEC Corporation 2012 Forecasts FY13/3 IT Services Business (Billions of Yen) YoY Key measures in FY13/3 ▐ Increase Order and Sales Focus on strong market demand areas - Smartphone related business, realignment of financial sector and large-scale-renewal projects and participation in National projects (National ID) Sales Accelerate shift to service business 855.0 816.9 +4.7% - Private cloud, cloud services for particular sectors (SaaS), cloud work-style transformation (alliance with Microsoft ) <Effect of Restructuring> +8.0 57.0 Operating Income Expand new businesses - M2M, Big Data Solutions Capture business opportunities of active Japanese companies in overseas - Mainly in Greater China, APAC 39.5 +17.5 Expand global business leveraging our competitive technologies - Public Safety, POS for Global market ▐ Investment for future growth Sales increase and effect of restructuring FY12/3 Expand cloud services Enhance advanced technologies FY13/3 Forecasts(*) - Cloud, Big Data, ”Smart” Devices Solutions Strengthen global business *Forecasts as of Apr 27, 2012 Page 23 © NEC Corporation 2012 Forecasts FY13/3 Carrier Network Business (Billions of Yen) YoY Sales 725.0 <Effect of Restructuring> +5.0 Operating Income +4.9 Mobile Backhaul Submarine Cable Systems - Solid execution of large scale projects and earthquake observation system Services & Management - Reinforce business by acquisition of BSS Business of Convergys Sales increase and effect of restructuring FY12/3 - LTE : cultivate global market through partnerships - Enhance product and provide total solution 61.0 56.1 ▐ Capture business opportunities accelerated by increasing use of smartphones ▐ Expand global business Wireless Broadband Access 633.0 +14.5% Key Measures in FY13/3 ▐ Increase investment for future growth FY13/3 Forecasts(*) Services & Management (next generation OSS/BSS, cloud services) and LTE for global telecom carriers, OpenFlow *Forecasts as of Apr 27, 2012 Page 24 © NEC Corporation 2012 Forecasts FY13/3 Social Infrastructure Business (Billions of Yen) Key Measures in FY13/3 YoY ▐ Capture business opportunities Secure stable operation by solid business execution - Widening of fire prevention systems, and digitization of wireless communications networks Sales 375.0 - 2nd generation ETC 330.4 - Aerospace and large-scale defense systems +13.5% sales increase, cost reduction and effect of restructuring despite making an investment for future growth Operating Income <Effect of Restructuring> 16.2 19.0 ▐ Expand global and new business Expand business leveraging our group assets - Safety, Space, disaster prevention - In-vehicle systems, logistics & transportation, energy +3.0 +2.8 ▐ Reinforce business Business execution focused on profitability - Reform design process, Project management, focus investment for development FY12/3 FY13/3 Forecasts(*) *Forecasts as of Apr 27, 2012 Page 25 © NEC Corporation 2012 Forecasts FY13/3 Energy Business Key Measures in FY13/3 (Billions of Yen) YoY Smart Energy Business Early establishment of Smart Energy Business framework integrating development, production and sales (*) Incl. Energy related business in Carrier Network Business 74.0 Sales ▐ Reinforce business Secure sales and profits from Energy Utility Business(*) and Electrode Business for EV 64.0 Accelerate new business +15.6% - Energy Storage System, Smart Meter, HEMS, Cloud Services for EV infrastructure etc ▐ Measures for mid-term growth Expansion of global business - Market entry through various field trials with customers and governments in each regions Operating Income - Accelerate business development through partnerships Deployment of energy service business FY12/3 - Expand service business from product business FY13/3 Forecasts(*) - Establish globally competitive business scheme Energy Utility Business(*) : Transferred from Carrier Network Business Page 26 © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 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 FY13/3 Forecast(*) 20.0 -110.3 Improvement in non-operating income/loss +1.7 Improvement in operating income +26.3 IT Services +17.5 Platform +9.8 Personal Solutions +9.0 Eliminations/unclassifiable expenses -18.6 Page 27 © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Summary ▐ Immediate improvement of macro economy and market environment cannot be expected ▐ We will shift to conduct efficient business operations to generate constant profit based on current sales level Execute management reforms to revive the NEC Group Focus investment in the key business areas to establish firm foundation toward growth Achieve 100 billion yen operating income, 20 billion yen net income to resume dividend payments through execution of restructuring, and focus on generating cash flow *Forecasts as of Apr 27, 2012 Page 28 © NEC Corporation 2012 Page2011 29 © NEC Corporation © NEC Corporation 2012 <Ref> Revision of Business Segments Revision of business segments Ｓｅｇｍｅｎｔ ▐ Revise business segments partially in accordance with organizational change from April, 2012 Integrate business segments of IT Services and Platform in order to enable more agile business execution → Accelerate to provide competitive cloud services and establish cloud business platform Establish vertically integrated business structure in energy business by gathering energy related resources （Establish Smart Energy Business Operations Unit） In addition to the above, reduction of divisions mainly in IT Services, Carrier Network and Corporate Staff （YOY -14%） Page 31 – Minimum of 30 billion yen annual sales per division – Corporate staff : Reduced the number of divisions to 23 from 30 by integrating similar and related functions to reduce SGA and improve operational efficiency © NEC Corporation 2012 《Ref.》 New and Current Segments Ｓｅｇｍｅｎｔ (Billions of Yen) Current segments IT Services Platform New Segments IT Solutions Sales 1,255.0 Operating Income 72.0 (Notes) To secure transparency and continuity of disclosure to capital markets, we will provide financial results and forecasts corresponding to current 2 segments “IT Services” and “Platform” as a reference Carrier Network Carrier Network Sales 695.0 Operating Income 53.0 Social Infrastructure Social Infrastructure Sales 375.0 Operating Income 19.0 Personal Solutions Personal Solutions Sales 610.0 Operating Income 10.0 Others Others Sales 215.0 Operating Income 16.0 *Forecasts as of Apr 27, 2012 Page 32 © NEC Corporation 2012 Ｓｅｇｍｅｎｔ 《Ref.》 New Segments and Organization Segment IT Solutions Integrate Carrier Network Social Infrastru cture Personal Solutions Others Sales Business Unit International Sales and Operations Business Unit Others NEC Energy Devices © NEC Corporation 2012 Personal Solutions Business Unit Social Infrastructure Solutions Business Unit Carrier Network Business Unit Platform Business Unit Page 33 IT Services Business Unit Organization Financial Results for FY12/3 (Appendix) Results FY12/3 Summary of Financial Results for FY12/3 (Billions of Yen) Q4(January to March) FY11/3 Full Year FY12/3 FY11/3 FY12/3 YoY Actual Actual YoY Actual Actual Net Sales 925.5 924.6 - 0.1% 3,115.4 3,036.8 - 2.5% -63.2 Operating Income 70.2 75.2 4.9 57.8 73.7 15.9 3.7 42.0 7.1 -97.7 -10.3 146.7 34.2 % to Net Sales Ordinary Income % to Net Sales Net Income/Loss % to Net Sales FCF 7.6% 49.3 5.3% 41.1 8.1% 64.0 14.8 6.9% -12.7 4.4% 81.9 1.9% 0.0 -12.5 - 98.8 42.1 0.0% -53.8 2.4% 1.4% -110.3 - 16.9 -112.6 - 34.2 (Ref): Average exchange rate for Q4(Jan-Mar) of FY12/3 1$= ¥77.77, 1€= ¥101.84 Average exchange rate for FY12/3 1$= ¥79.03, 1€= ¥109.43 (Assumed exchange rate for Q4 of FY12/3 1$=¥75, 1€=¥100) Page 35 Difference from Jan 26 © NEC Corporation 2012 Results FY12/3 Results for 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/ Unclass ifiable expens es Operating Loss Net Sales Total Operating Income % to Net Sales Page 36 9.3% 116.5 12.4 12.7% 117.9 12.4 10.7% 188.7 27.9 14.8% 8.8% 181.5 -3.2 - 62.3 2.9 4.7% 375.8 8.9 0.9% 3.5 605.4 40.7 5.1% -1.4 318.8 14.6 - 9.2% 3.7 0.3% 53.1 2.0 - 14.8% -1.0 3.7% 244.7 7.3 3.0% - 0.9% -3.6 -2.7 0.2 4.5% 15.4 -47.0 1.1 3.6% 1.6 -4.6 -1.8 - 13.8% 2.9 -14.0 0.0 - 8.8% -0.2 -1.8 2.1 4.9% 661.0 1.0 - 6.9 3.5 8.9% 330.4 16.2 766.5 -1.9 1.6% 18.1 1.4% 633.0 56.1 4.6% YoY Difference from Jan 26 4.8% 372.4 5.2 6.7% 7.3% 164.7 0.6 FY11/3 Actual 804.2 21.4 2.4% 16.5% 120.1 8.7 Full Year FY12/3 Actual 816.9 39.5 2.7% 1.2% -0.1 10.5% 190.5 31.5 114.3 10.1 % to Net Sales Net Sales Others Q4(January to March) FY11/3 FY12/3 YoY Actual Actual 262.2 278.4 6.2% 24.5 35.2 10.7 0.2% 223.2 7.1 3.2% -4.5 -15.2 -10.7 -33.2 -51.4 -18.2 -1.4 925.5 70.2 924.6 75.2 - 0.1% 4.9 3,115.4 57.8 3,036.8 73.7 - 2.5% 15.9 -63.2 3.7 7.6% 8.1% © NEC Corporation 2012 1.9% 2.4% Results FY12/3 Summary of Financial Results for FY12/3 by Segment Operating Income/Loss Net Sales Others 7% IT Services 27% 73.7 56.1 22% IT Services 39.5 Sales for FY12/3 Social Infrastructure 3,036.8 Platform Platform Social Infrastructure 12% Carrier Network 21% Page 37 Operating Income for FY12/3 Carrier Network Personal Solutions 11% (Billions of Yen) © NEC Corporation 2012 5.2 16.2 Others Personal Solutions 1.0 7.1 Results FY12/3 IT Services Business Billions of Yen (YoY) (Billions of Yen) Full Year Operating income ratio YoY 6.1% 4.8% 2.7% Sales 866.3 Operating 804.2 816.9 Income 53.2 +1.6％ -7.2％ 39.5 21.4 FY10/3 FY11/3 FY12/3 <Ref> Q4 Operating income 12.7% ratio 13.3% Sales 9.3% 301.5 Operating Income 40.2 278.4 262.2 +6.2％ -13.0％ 24.5 Page 38 35.2 FY10/3 FY11/3 FY12/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> ▐ Sales 816.9 （+1.6%） Secured large scale projects in central governments and business opportunities from investment recovery in manufacturing, demand involving law amendments and introducing electronic health record systems in medical services ▐ Operating Income 39.5 （+18.1） Improve by sales increase and controlling loss-making projects, higher productivity and quality such as enhancement of services delivery efficiency © NEC Corporation 2012 Results FY12/3 Platform Business Billions of Yen (YoY) (Billions of Yen) Full Year Operating income ratio YoY 2.4% 1.4% - 0.5% Sales 375.8 373.7 372.4 +0.6％ Operating Income/Loss -0.9％ 8.9 5.2 -1.7 FY10/3 FY11/3 FY12/3 <Ref> Q4 Sales 10.7% 10.0% 120.6 Operating 116.5 372.4 (-0.9%) Software Increase in operation management software such as virtualization, cloud computing platform Hardware Decline due to an impact of flood in Thailand Enterprise Network Increase due to large-scale projects in Japan despite negative impact of flood in Thailand ▐ Operating Income 5.2 (-3.6) +1.2％ -3.4％ Page 39 10.5% 117.9 Income 12.1 Operating income ratio ▐ Sales 12.4 12.4 FY10/3 FY11/3 FY12/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> Decrease due to a drop in sales and increase in cost caused by flood in Thailand © NEC Corporation 2012 Results FY12/3 Carrier Network Business Billions of Yen (YoY) (Billions of Yen) Full Year YoY 8.9% Sales Operating income ratio 5.0% 627.4 Operating Income 6.7% -3.5％ 31.3 FY10/3 633.0 605.4 +4.5％ 56.1 40.7 FY11/3 <Ref> Q4 14.8% FY12/3 Operating income 16.5% ratio Sales Income 190.5 188.7 +7.3％ +0.9％ 27.9 31.5 FY10/3 FY11/3 FY12/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> （+4.5%） Solid business in Japan due to increase in demand from data traffic hikes Submarine cable systems: Increase due to solid execution of large scale projects Mobile backhaul (PASOLINK): increase mainly in Russia and Latin America, with new full-IP PASOLINK products （+15.4） Higher profits from solid sales in Japan and submarine cable systems 16.9 Page 40 633.0 ▐ Operating Income 56.1 9.6% 175.9 Operating ▐ Sales © NEC Corporation 2012 Results FY12/3 Social Infrastructure Business Billions of Yen (YoY) (Billions of Yen) Full Year YoY Operating income ratio 4.9% 4.6% 6.9% Sales Operating 316.6 Income 21.7 330.4 318.8 +0.7％ +3.6％ ▐ Sales 16.2 14.6 FY11/3 FY12/3 <Ref> Q4 Sales 8.8% 15.1% 122.2 Operating Income 114.3 18.4 Page 41 Operating income 7.3% ratio +5.1％ -6.4％ 8.7 FY10/3 FY11/3 FY12/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> 16.2 (+1.6) Improve profits due to sales increase in social systems and enhancement of cost reductions 120.1 10.1 (+3.6%) Increase in social systems such as broadcasting, fire and disaster prevention, despite decrease in aerospace and defense systems ▐ Operating Income FY10/3 330.4 © NEC Corporation 2012 Results FY12/3 Personal Solutions Business Billions of Yen (YoY) (Billions of Yen) Operating income ratio Full Year YoY ▐ Sales 661.0 (-13.8%) - 0.2% 2.6% Sales +3.9％ 766.5 737.7 Mobile Terminals 0.2% 661.0 +7.4％ -0.8％ 282.5 Operating 303.5 Income/Loss 18.9 PCs and Others -13.8％ 455.2 463.0 FY10/3 301.0 +1.7％ -22.2％ -1.9 FY11/3 1.0 360.0 FY12/3 Mobile Terminals : Slight decrease due to decrease in mobile terminal shipment PCs and Others : Decrease due to the deconsolidation of consumer PCs ▐ Operating Income <Ref> Q4 3.6% - 1.8% Sales -8.7％ 198.7 Mobile Terminals PCs and Others Page 42 66.1 132.6 -9.2％ 181.5 Operating 67.8 Income/Loss 7.2 Operating income 0.3% ratio 113.7 +11.1％ 75.3 -14.3％ -3.2 -21.4％ 89.4 0.6 FY10/3 FY11/3 FY12/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> (+2.9) Improved by streamlining R&D activities and enhancing cost reductions 164.7 +2.6％ 1.0 © NEC Corporation 2012 Results FY12/3 Financial Position Data (Billions of Yen) End of Mar End of Mar 2011 2012 Total Assets 2,628.9 2,557.6 -71.4 Net Assets 875.4 777.6 -97.8 Interest-bearing debt 675.8 692.7 16.9 Shareholder's Equity 757.1 657.0 -100.1 Equity ratio(%) 28.8% 25.7% - 3.1pt D/E ratio 0.89 1.05 - 0.16pt Net D/E ratio 0.62 0.67 - 0.05pt 203.9 251.8 Balance of cash and cash equivalents Page 43 Difference from Mar 2011 © NEC Corporation 2012 48.0 Results FY12/3 <Ref.> Balance Sheets (At the end of Mar, 2012) (Billions of Yen) Total Assets 2,557.6 <Compared to end of Mar, 2011> (-71.4) Compared to end of Mar, 2011 Current Assets 1,514.4 Liabilities 1,780.0 +71.9 Increase in trade notes and accounts receivable +26.5 Increase in long term debt and bond Noncurrent Assets 1,043.1 -143.2 Decrease in deferred tax assets Decrease in property, plant and equipment -97.8 Net Assets 777.6 Recording net loss for FY12/3 Page 44 © NEC Corporation 2012 Capital Expenditure, Depreciation and R&D expenses (Billions of yen) FY11/3 FY12/3 Actual Actual YoY Difference FY13/3 from Jan 26 Forecasts YoY Capial Expenditure 52.9 42.0 - 20.6% -28.0 50.0 19.1% Depreciation 62.1 53.3 - 14.2% -6.7 55.0 3.2% 176.5 162.0 - 8.2% -3.0 170.0 5.0% 5.7% 5.3% R&D expenses To consolidated total sales （％） 5.4% *Forecasts as of Apr 27, 2012 Page 45 © NEC Corporation 2012 Results FY12/3 Overseas sales (Billions of Yen) Q4 <January to March> FY11/3 FY12/3 YoY Actual Actual Asia Europe Others Total Net Sales 38.9 40.2 To consolidated total sales （％） 4.2% 4.4% Net Sales 29.7 21.8 To consolidated total sales （％） 3.2% 2.4% Net Sales 50.2 56.6 To consolidated total sales （％） 5.4% 6.1% 118.8 118.7 12.8% 12.8% Net Sales To consolidated total sales （％） FY11/3 Actual 3.4% - 26.4% 12.8% - 0.1% Full Year FY12/3 Actual 158.5 153.0 5.1% 5.0% 109.8 104.4 3.5% 3.4% 211.1 224.1 6.8% 7.4% 479.3 481.5 15.4% 15.9% YoY Major countries and regions - 3.5% China,Chinese Taipei,India, Singapore and Indonesia - 4.9% UK,France,Netherlands, Germany,Italy and Spain 6.2% U.S.A 0.4% * Sales, based on customer locations, are classified by country or region Page 46 © NEC Corporation 2012 Measures and achievements in Cloud Business Digital Signage System for UNIQLO Financial accounting cloud services for 10 cities in Kanagawa Accounting system for COOKPAD Inc. Cloud services of Internet reservation data exchange for HOTEL CENTURY SOUTHERN TOWER Unified communication system for Ishigaki City and Taketomi town in Okinawa Saas-based e-ticket issuance and authentication services for Entertainment Plus Inc. Indirect material procurement services for Cecile Co., Ltd. Collaboration with Nepon in Agriculture ICT Cloud Library System in Maebashi City and Yamato City Central and local governments, Medical services Education Information Cloud for education committee in Hiroshima City Private Cloud for Tokai Univ. Retail Services Finance Global Accounting System for SANDEN Corporation Manufacturing Collaboration with Mitsubishi Electronic Corporation in cloud service business for manufacturing management systems Alliance with OBAYASHI CORPORATION and GRAPHISOFT SE in Smart BIM Cloud Page 47 Hybrid Cloud for Tokushima Univ. SaaS-based electric medical records system for Tamashima Daiichi Hospital in Kurashiki City, Okayama Content chemical Management Solution Complying with the REACH Regulations for YASKAWA ELECTRIC CORPORATION Health Management System for Seiko Epson Corp Cloud Telecom Media Shipping LTE base stations for KDDI Launch M2M Solution “CONNEXIVE” Launch services from Data Center in Kansai Launch services from Data Center in Hokkaido © NEC Corporation 2012 Measures and achievements in Global Business Launched SaaS business application store Global iPASOLINK : Secured orders of more than 110,000 units from 100 operators in 55 countries with Mobile TeleSystems OJSC Collaboration with Royal Philips Electronics on digital pathology systems Provide Swiss Post with the Latest Mail Processing Systems Femtocell systems for Kuwait Zain Collaboration with Neusoft Corporation on cloud services Transport Management System for logistics company in China Collaboration with Jointown Pharmaceutical Group on Medical logistics solution Digital Signage System for UNIQLO Alliance with Korea's Shinsegae and NICE for Cloud Services Analyzing Customer Information SaaS cloud service for the Amata Industrial Estate, Thailand Collaboration with Cisco to build commercial LTE Networks Acquisition of the BSS business of U.S. based Convergys Programmable Flow for Genesis Hosting NetCracker acquired activation business from India Subex Collaboration with Singapore STEE on cloud services Launch production of Deployed advanced postal automation system in Malaysia PASOLINK in India POS system for Alfamart, one of Indonesia’s retailers Partnership with India Trimax on cloud services Asia Pacific Gateway (Submarine Cable System) Establish NEC Mobile Network South-East Asia Japan Cable system Excellence Center in India Maldives' domestic submarine cable system Established NEC Africa Ltd. Page 48 © NEC Corporation 2012 Participated in Smart City development in Brazil Established NEC Latin America S.A. Acquire Global View S.A. in Argentina SaaS-based cloud services in Argentina with Telefónica Measures and achievements in Smart Energy Business EV Charging Infrastructure Electric Vehicle Smart House Store New business Power Supply Side BEMS(*) Launched cloud supported home energy storage system Co-development of intelligent distribution panel with Seven-Eleven Japan Co.,Ltd. Development and field trials of distributed energy management and control system technology using storage batteries with ORIX Corporation Launched ultra low power magnetic sensors for water and gas meters Strategic partnership with Enel Distribuzione on the development of Next-Generation Smart Grid system Launched Home Energy Management System (HEMS) Began demonstration project for Battery and Charger Integration Systems for next generation service stations as part of Yokohama City’s “Yokohama Smart City Project” Developed new technology which doubles life of manganese Li-ion rechargeable battery Develop new power grid to introduce renewable energy easily with Tokyo Univ. and the National Institute of Advanced Industrial Science and Technology Set up “Smart City Promotion Office” Participated in “Smart City Project” Survey the deployment of energy management technologies for mobile phone base stations in India Basic research to realize green township in Malaysia Feasibility study of smart community for overseas market in Indonesia BEMS (*) : Building Energy Management System Page 49 © NEC Corporation 2012 Participated in Smart City development in Brazil Financial Forecasts for FY13/3 (Appendix) Forecasts FY13/3 Summary of Financial Forecasts for FY13/3 (Billions of Yen) 1H <April to September> FY12/3 FY13/3 YoY Actual Forecasts(*) 362.7 380.0 4.8% 3.0 14.0 11.0 Net Sales IT Services Operating Income % to Net Sales 0.8% Net Sales Platform Operating Income/Loss 174.0 -2.2 % to Net Sales Carrier Network - 294.2 15.3 Net Sales Operating Income % to Net Sales 5.2% 140.3 6.1 Net Sales Social Infrastructure Operating Income Personal Solutions Operating Income/Loss % to Net Sales % to Net Sales Net Sales Others Operating Income % to Net Sales Eliminations/ Unclassifiable expenses Operating Loss Net Sales Total 4.3% Net Sales Operating Income % to Net Sales 3.7% 190.0 0.0 354.3 3.4 0.0% 3.0% 12.2% 3.7 633.0 56.1 3.3% -0.1 330.4 16.2 8.9% 4.1% 265.0 -2.0 4.9% - 25.2% -5.4 661.0 1.0 - 23.6% -1.5 223.2 7.1 - 90.0 2.0 372.4 5.2 1.4% 5.8% 145.0 6.0 1.0% 117.8 3.5 4.8% 9.2% 2.2 330.0 19.0 Full Year FY12/3 FY13/3 Actual Forecasts(*) 816.9 855.0 39.5 57.0 0.2% 2.2% 3.2% YoY 4.7% 17.5 6.7% 400.0 15.0 7.4% 9.8 3.8% 725.0 61.0 14.5% 4.9 8.4% 375.0 19.0 13.5% 2.8 5.1% 610.0 10.0 - 7.7% 9.0 1.6% 185.0 8.0 - 17.1% 0.9 4.3% -22.3 -38.0 -15.7 -51.4 -70.0 -18.6 1,443.2 6.8 1,400.0 1.0 - 3.0% -5.8 3,036.8 73.7 3,150.0 100.0 3.7% 26.3 0.5% 0.1% 2.4% 3.2% *Forecasts as of Apr 27, 2012 Page 51 © NEC Corporation 2012 Summary of Financial Forecasts for FY13/3 by Segment (Billions of Yen) Operating Income Net Sales Forecasts FY13/3 IT Services Others 27% 6% Carrier Network Personal Solutions IT Services 57.0 19% Sales Forecast for FY13/3 Operating Income Forecast for FY13/3 100.0 61.0 Social Infrastructure 3,150.0 19.0 Platform 15.0 Personal Solutions Others 10.0 8.0 Platform 13% Social Infrastructure 12% Carrier Network 23% Page 52 *Forecasts as of Apr 27, 2012 © NEC Corporation 2012 Forecasts FY13/3 IT Services Business (Billions of Yen) Full Year Operating income ratio YoY 6.7% 4.8% 2.7% Sales 804.2 855.0 816.9 +4.7％ Operating Income 57.0 +1.6％ 39.5 21.4 FY11/3 FY12/3 FY13/3 Forecasts(*) +4.8％ Operating Income 3.5 Page 53 14.0 -2.2％ （+4.7%） Secure business opportunities such as smartphone related investment, realignment of financial sector and overseas advance of Japanese companies Expand new business such as M2M and Big Data Solutions Improve by sales expansion and the effect of restructuring 380.0 362.7 855.0 ▐ Operating Income 57.0 （+17.5） 0.8% Sales 371.0 ▐ Sales 3.7% <Ref> 1H Operating income ratio 1.0% Billions of Yen (YoY) 3.0 FY11/3 FY12/3 FY13/3 <Apr-Sep> <Apr-Sep> <Apr-Sep> Forecasts(*) Make an investment in cloud, global and new business © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Forecasts FY13/3 Platform Business (Billions of Yen) Full Year Operating income ratio 2.4% YoY 3.8% 1.4% Sales 375.8 400.0 372.4 Operating Income +7.4％ -0.9％ 8.9 15.0 5.2 FY11/3 FY12/3 FY13/3 Forecasts(*) <Ref> 1H Operating income ratio- 0.9% 0.0% - 1.3% Sales 176.8 Operating Income/Loss -1.5 Page 54 190.0 174.0 -2.2 ▐ Sales 400.0 0.0 FY11/3 FY12/3 FY13/3 <Apr-Sep> <Apr-Sep> <Apr-Sep> Forecasts(*) (+7.4%) Software Aim to increase by expanding sales operation management software mainly for data centers and products for cloud/big-data Hardware Expect to increase sales by focusing on products for energy saving and BCP Enterprise Network Expect to increase sales with solution for work-style innovation and datacenters, in addition to the solid execution of large scale projects ▐ Operating Income +9.2％ -1.6％ Billions of Yen (YoY) 15.0 (+9.8) Expect to increase profits from sales expansion and steady execution of restructuring © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Forecasts FY13/3 Carrier Network Business (Billions of Yen) Full Year Operating income ratio YoY 8.9% 8.4% 6.7% Sales 725.0 605.4 Operating 633.0 Income +4.5％ +14.5％ 61.0 56.1 40.7 FY11/3 FY12/3 FY13/3 Forecasts(*) <Ref> 1H Operating income ratio 5.8% 5.2% 330.0 294.2 271.0 +12.2％ Operating Income ▐ Sales 725.0 （+14.5%） Achieve additional sales growth in Japan by capturing business opportunities arising from data traffic hikes Attain sales increase by expansion of services & management business and solid execution of large scale projects in submarine cable systems ▐ Operating Income 61.0 （+4.9） Expect to increase profits from sales expansion despite making an investment for future growth 2.6% Sales Billions of Yen (YoY) +8.6％ 15.3 19.0 7.0 Page 55 FY11/3 FY12/3 FY13/3 <Apr-Sep> <Apr-Sep> <Apr-Sep> Forecasts(*) © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Forecasts FY13/3 Social Infrastructure Business (Billions of Yen) Full Year Operating income ratio 4.6% 5.1% 4.9% Sales +13.5％ Operating Income +3.6％ 19.0 16.2 14.6 FY11/3 FY12/3 FY13/3 Forecasts(*) <Ref> 1H Operating income ratio 4.3% 4.1% 2.9% Sales 140.3 137.9 Operating Income 4.0 Page 56 ▐ Sales 375.0 (+13.5%) Aiming to increase in aerospace and defense systems 375.0 330.4 318.8 YoY Billions of Yen (YoY) 145.0 Social systems will be same level as the previous year due to sales increase in fire and disaster prevention systems offset by decrease in demand of broadcasting system ▐ Operating Income 19.0(+2.8) Improve due to sales increase, cost reduction and effect of restructuring despite making an investment for future growth +3.3％ +1.8％ 6.1 6.0 FY11/3 FY12/3 FY13/3 <Apr-Sep> <Apr-Sep> <Apr-Sep> Forecasts(*) © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Forecasts FY13/3 Personal Solutions Business (Billions of Yen) Full Year YoY Operating income ratio 1.6% 0.2% - 0.2% Sales 766.5 Mobile Terminals 661.0 -0.8％ 303.5 -1.9 296.0 -12.8％ -22.2％ 1.0 360.0 FY11/3 -7.7％ 610.0 -1.7％ 301.0 Operating Income/Loss 463.0 PCs and Others -13.8％ FY12/3 10.0 314.0 FY13/3 Forecasts(*) <Ref> 1H Operating income ratio 0.7% 1.0% - 0.8% Sales 392.1 Mobile Terminals PCs and Others Page 57 155.4 236.7 354.3 Billions of Yen (YoY) ▐ Sales 610.0 (-7.7%) Mobile Terminals : Slight decrease due to price decline and changes in product mix despite shipment increase PCs and Others : Decrease due to the deconsolidation of consumer PCs ▐ Operating Income 10.0 (+9.0) Improve due to the effect of restructuring in mobile terminal business despite sales decrease -9.6％ -25.2％ 265.0 +7.0％ Operating 166.3 Income/Loss 2.9 -20.6％ 188.0 -22.4％ 129.0 3.4 -27.7％ 136.0 -2.0 FY11/3 FY12/3 FY13/3 <Apr-Sep> <Apr-Sep> <Apr-Sep> Forecasts(*) © NEC Corporation 2012 *Forecasts as of Apr 27, 2012 Reference (Financial data) Net Sales, Operating Income/Loss (Billions of yen) Operating income ratio 8.7% 8.1% 7.6% YoY 3.4% 3.0% 0.3% - 0.9% - 5.1% Net Sales - 1.9% - 3.5% -3.1% -16.2% 1,104.1 -22.3% -13.0% 186.8 778.5 825.4 （16.9％） （Overseas Sales Ratio） （21.4%） 163.9 -14.2% 667.5 114.2 Q1 118.7 (12.8%) 774.1 669.1 117.5 669.0 138.8 (17.9%) 108.9 (16.3%) 115.1 （16.3%） （17.2%） （17.1%） 75.2 70.2 Operating Income/ Loss -40.0 -7.2% 118.8 (12.8%) 128.8 （16.1%） 96.1 Sales in Japan 720.7 （21.2%） （21.1%） 924.6 +0.2% 801.6 175.2 -3.4% 925.5 -12.7% 186.9 Overseas Sales -0.1% -8.4% -22.3% 875.2 - 1.2% - 2.9% 26.2 24.3 2.3 Q2 -7.5 Q3 Q4 Q1 -19.4 -13.5 -23.2 Q2 Q3 Q4 Q1 -8.2 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 59 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (IT Services) (Billions of yen) 13.3% 12.7% Operating income ratio 9.3% 4.8% YoY 5.0% 4.4% 1.8% 0.8% 301.5 - 0.4% - 3.5% - 3.9% 262.2 278.4 - 4.7% -7.7% Net Sales 209.8 209.7 187.6 167.6 171.0 161.2 -10.8% 157.5 0.0% 40.2 +6.2% 205.2 -13.0% 175.8 -2.2% -1.4% +2.8% -7.7% -8.8% -3.8% Operating Income/ Loss 24.5 10.2 9.2 10.3 3.4 Q2 Q3 Q4 Q1 -7.4 -6.6 -5.7 -0.6 Q1 35.2 -2.3% Q2 Q3 Q4 Q1 1.3 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 60 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (Platform) 10.0% 10.7% Operating income ratio 0.7% 10.5% 3.4% 3.0% (Billions of yen) - 0.3% YoY - 2.4% - 5.5% - 6.1% - 6.8% 120.6 116.5 117.9 - 19.1% Net Sales 92.3 96.7 -8.5% 82.5 80.0 73.9 -19.8% Operating Income/ Loss Q1 -5.1% -0.2% 0.7 -0.3 Q3 -4.4 Q4 -2.5% 12.4 12.1 Q2 80.5 -2.7% +8.3% -34.1% +1.2% 79.9 +4.8% -21.0% -14.1 94.1 -3.4% 87.0 Q1 2.9 Q2 -5.4 -2.0 Q3 12.4 Q4 Q1 3.2 -4.9 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 61 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (Carrier Network) (Billions of yen) 14.8% Operating income ratio 9.6% YoY 8.4% 7.1% 8.3% 6.3% 4.0% 1.4% 1.4% 0.4% Net Sales 16.5% 190.5 188.7 175.9 166.9 - 5.1% 154.2 142.9 141.7 162.3 145.7 -17.1% +0.9% 131.9 -24.4% -25.9% 148.3 +7.3% +5.3% 116.8 -7.6% +1.8% +2.0% -19.8% +12.9% -17.6% Operating Income/ 11.8 Loss 16.9 Q2 13.0 13.5 5.8 2.0 0.5 Q1 31.5 27.9 Q3 -6.0 Q4 Q1 9.3 1.8 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 62 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (Social Infrastructure) (Billions of yen) 15.1% Operating income ratio YoY 8.8% 4.7% 7.3% 6.9% 4.6% 1.9% 0.7% 0.9% 122.2 - 1.2% 0.6% 0.7% 120.1 114.3 -2.0% +5.1% -6.4% Net Sales 81.5 79.5 72.4 58.4 57.2 -0.7 Q1 Q2 +2.6% +5.1% +3.0% -4.1% -4.3% Operating Income/ Loss 3.4 58.8 +9.7% 18.4 -18.1% 70.0 66.6 64.7 +0.7% +2.0% 10.1 8.7 5.7 3.7 0.6 Q3 Q4 Q1 Q2 Q3 1.3 0.4 0.4 0.3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 63 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (Personal Solutions) (Billions of yen) Operating income ratio 4.6% 3.6% 2.0% - 0.4% YoY 1.6% - 0.2% - 0.8% 0.7% 1.2% - 1.8% 0.3% - 2.1% Net Sales +4.6% -17.1% +18.6% -0.7% +9.2% -8.7% -5.2% -13.4% -23.6% 194.9 167.4 -14.0% 198.7 198.5 193.5 176.7 66.1 Mobile Terminals 93.2 193.0 76.3 79.1 59.3 181.5 183.5 170.8 -9.2% -26.4% 164.7 142.0 80.3 67.8 79.5 63.9 86.8 75.3 59.4 PCs and Others 8.9 101.7 132.6 117.4 103.5 7.2 3.4 Q2 112.7 104.0 84.0 Q4 Q1 -3.2 -1.6 -0.4 Q3 113.7 3.3 Operating -0.7 Income/ Loss Q1 122.3 114.4 Q2 Q3 Q4 1.3 Q1 89.4 82.6 2.1 -3.0 Q2 Q3 0.6 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 64 FY11/3 © NEC Corporation 2012 FY12/3 Sales, Operating Income/Loss (Others) 6.6% 3.0% Operating income ratio 0.2% 3.7% YoY 2.1% - 7.8% - 17.2% - 0.9% - 2.0% - 4.6% Net Sales (Billions of yen) 6.7% 4.7% 185.2 166.5 166.5 143.1 +38.6% -31.2% -16.7% -62.2% -40.7% -62.8% -59.8% Operating Income/ Loss -24.7 Q1 63.0 57.6 -7.7 -12.9 Q2 Q3 0.4 Q4 -1.1 Q1 61.9 4.2 Q2 -66.3% 62.3 1.3 Q3 2.9 Q4 -4.4% 0.0% 57.6 -0.5 Q1 -15.3% -14.8% 52.4 53.1 60.2 4.0 Q2 1.6 Q3 2.0 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 65 FY11/3 © NEC Corporation 2012 FY12/3 Exchange Rate (Yen) 125 Average exchange rate ¥116.90 120 Euro/Yen Exchange rate(Actual) Assumed Exchange rate Average exchange rate ¥115.20 115 Average exchange rate ¥109.43 110 105 100 Average exchange rate ¥105.48 95 Average exchange rate ¥101.84 90 Dollar/Yen Exchange rate(Actual) Average exchange rate ¥82.16 85 Assumed Exchange rate Average exchange rate ¥80.64 Average exchange rate ¥79.03 80 75 Average exchange rate ¥77.07 Average exchange rate ¥77.77 70 4/1 Page 66 4/28 5/31 6/30 7/29 8/31 9/30 10/31 © NEC Corporation 2012 11/30 12/30 1/31 2/29 3/30 Stock Price (Yen) Apr 11:NEC IR Day (Personal Solutions) 10,500 195 May 10:FY11/3 Earnings 190 Oct 12:NEC IR Day (Carrier Networks) 10,000 185 Oct 27:1H Earnings Jul 28:Q1 Earnings 180 Jan 26:Q3 Earnings 9,500 175 170 9,000 165 160 Jun 22:Ordinary General Meeting of Shareholders 8,500 155 NEC the Nikkei Stock Dec 14:R&D Briefing 150 Mar 12 Social Infrastructure Technology Briefing 8,000 145 4/1 Page 67 5/10 6/22 7/28 10/27 © NEC Corporation 2012 12/30 1/26 3/30 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.