Financial Results for Fiscal Year Ended March 31, 2011 May 10, 2011 NEC Corporation (http://www.nec.co.jp/ir/en) Index I. Financial Results for FY11/3 II. Management Policy for FY12/3 III. Measures for Mid-term Growth Plan V2012 l Financial Results for FY11/3 (Appendix) l Financial Forecasts for FY12/3 (Appendix) l Mid-term Growth Plan “V2012” Progress l Reference (Financial data) Page 2 © NEC Corporation 2011 Impact of the Great East Japan Earthquake ▐ All quake-stricken manufacturing facilities* restarted on 23rd Mar l Expanding production and securing supply systems Just after the earthquake NEC Network Products Restart on 14th Mar (former NEC Wireless Networks) 《Fukushima, Fukushima Pref.》 Assembly/inspection line Assembly/inspection line On 14th Mar NEC Network Products Restart on 23rd Mar (former NEC Tohoku) 《Ichinoseki, Iwate Pref.》 Production line Production line * NEC Network Products (Headquarters, Ichinoseki Plant), NEC Infrontia Tohoku, NEC Tokin Page 3 © NEC Corporation 2011 I. Financial Results for FY11/3 Summary of Financial Results for FY11/3 FY11/3 Results ▐ Operating profit was in line with the previous forecasts ▐ However, net loss was recorded due to larger investment loss from the equity method (Billions of Yen) FY10/3 Actual Net Sales Operating Income % to Net Sales Ordinary Income % to Net Sales Net Income/Loss % to Net Sales FY11/3 Actual 3,583.1 3,115.4 -13.1% -84.6 50.9 57.8 6.9 -2.2 1.4% 1.9% 49.4 0.0 -49.4 -10.0 1.4% 0.0% -23.9 -12.5 -4.82 11.4 -12.5 0.3% - Net Income/Loss per Share (Yen) 5.04 -4.82 -9.86 Free Cash Flow 93.6 -112.6 -206.2 Note: Average exchange rates for FY11/3: 1$= ¥86.45, 1€= ¥113.83 Page 5 YoY Difference from February 25 Forecasts © NEC Corporation 2011 FY11/3 Results Results for FY11/3 by Segment Net Sales Operating Income/Loss -6.2 50.9 51.8 53.2 4,215.6 IT Services IT Services 933.8 3,583.1 3,115.4 Platform Carrier Network Social Infrastructure 469.4 866.3 807.0 373.7 340.4 Personal Solutions 848.4 Others 816.7 FY09/3 Page 6 804.2 627.4 375.8 316.6 605.4 737.7 318.8 766.5 661.4 FY10/3 244.7 FY11/3 Platform 11.5 Carrier Network 51.6 21.7 Social Infrastructure Personal Solutions 7.9 -14.2 18.9 -1.7 -44.9 Others -87.1 -27.5 Eliminations/ Unclassifiable expenses -27.7 FY09/3 © NEC Corporation 2011 31.3 FY10/3 (Billions of Yen) 57.8 21.4 8.9 40.7 14.6 7.3 -1.9 -33.2 FY11/3 FY11/3 Results Sales Change (Year on Year) Decrease in Wireless Overseas mainly in mobile backhaul areas -25.8 FY10/3 IT Services -62.1 (-7.2%) 3,583.1 -13.5 -34.6 Carrier Network -22.0 (-3.5%) Personal Solutions +28.8 (+3.9%) Synergy effects from merger of mobile terminal businesses, solid growth in display business Delayed recovery in domestic IT investments, decrease in large scale projects Platform +2.1(+0.6%) +0.8 Decrease in hardware, solid growth in software Social Infrastructure +2.2 (+0.7%) +3.8 Decrease in Aerospace and Defense, increase in social systems Page 7 © NEC Corporation 2011 Deconsolidation of semiconductor business FY11/3 3,115.4 Others -416.6 -15.3 Difference from Feb. 25 Forecasts (Billions of Yen) FY11/3 Results Operating Income Change (Year on Year) Eliminations/ Unclassifiable expense -5.6 High profit project in the previous fiscal year Improved profit from sales recovery in 2H FY10/3 50.9 IT Services -31.8 -8.6 Decrease in sales, severe price competition, loss-making projects Carrier Network Social +9.4 Infrastructure -7.1 +0.7 +1.6 (Billions of Yen) FY11/3 57.8 +3.8 Others +52.2 +1.3 Deconsolidation of semiconductor business Continuous cost reduction efforts, improved development efficiency +0.9 Page 8 Platform +10.6 Personal Solutions -20.8 -1.9 © NEC Corporation 2011 Difference from Feb. 25 Forecasts Sluggish sales of feature phones, increase in R&D for new devices Key Points of FY11/3 Results by Segment (Year on Year) IT Services l Delayed recovery in domestic IT investments, decrease in large scale projects l Lower profits due to decrease in sales, severe price competition, loss-making projects ✔ Platform l Increase in sales due to solid growth in software, despite decrease in hardware l Higher profits from continuous cost reduction efforts and improved development efficiency Carrier Network l Decrease in sales due to decrease in wireless overseas, mainly in mobile backhaul areas l Higher profits from sales recovery in 2H (WBA*, submarine cable systems) Social Infrastructure Personal Solutions Others * FY11/3 Results l Flat sales due to increase in social systems, offset by a decrease in aerospace and defense l Lower profit compared with the previous fiscal year with high profit projects l Increase in sales due to synergy effects from merger of mobile terminal business and solid growth for display l Stagnant sales of feature phones and larger R&D for new devices ✔ l Decrease in sales due to deconsolidation of semiconductor business l Higher profits from deconsolidation of loss making semiconductor business WBS: Wireless Broadband Access, including LTE and femtocell Page 9 ✔ Note: First bullets in the tables refer to changes in sales, second bullets refer to changes in profits © NEC Corporation 2011 FY11/3 Results Net Income/Loss Change (Year on Year) (Billions of Yen) FY10/3 11.4 Improvement in operating income +6.9 -2.2 Larger investment loss from the equity method, Reversal of provision for contingent loss from the previous fiscal year Larger nonoperating loss -56.3 FY11/3 -7.8 Others +52.2 Platform +10.6 Carrier Network +9.4 Eliminations/Unclassifiable expense -5.6 Social Infrastructure -7.1 Personal Solutions -20.8 IT Services -31.8 -2.5 Others +25.6 Decrease in tax payments Difference from Feb. 25 Forecasts Page 10 -12.5 © NEC Corporation 2011 Challenges and Accomplishments FY11/3 Results ▐ Challenging performance with downward revisions on yearstart forecasts, net loss and passed dividends l Slower than estimated recovery in domestic IT investments, lower profitability in IT services l Stagnant investments among global telecom carriers l Sluggish sales of feature phones, and slow entry to smartphones ▐ Measures to reinforce business competitiveness l Announcement of strategic alliance with Lenovo Group in PC business ▐ Challenges to tackle V2012 focus areas, “Implementation of C&C Cloud Services”, “Expansion of Global Businesses” and “Creation of New Businesses”, with speed Page 11 © NEC Corporation 2011 II. Management Policy for FY12/3 FY12/3 Forecasts Management Policy for FY12/3 ▐ Creating and gaining new business opportunities to expand global businesses l Provide total solutions, leveraging NEC’s strengths in cloud services l Accelerate global business expansion through collaboration with partners in emerging countries l Create new businesses which will follow batteries and new devices ▐ Improving quality and enhancing cost efficiency to maximize profits l Implement cost reduction measures and control quality related expenses l Slash selling and general administrative expenses by enhancing back-office efficiency One NEC to promote “outward” and “inward” efforts, and realize operating profit target* of 90B yen, and net profit target* of 15B yen through operation with speed *Forecasts as of May 10, 2011 Page 13 © NEC Corporation 2011 Summary of Financial Forecast for FY12/3 FY12/3 Forecasts (Billions of Yen) Net Sales Operating Income % to Net Sales Ordinary Income % to Net Sales Net Income/Loss FY11/3 FY12/3 Actual Forecast(*) 3,115.4 3,300.0 5.9% 57.8 90.0 32.2 1.9% 2.7% 0.0 Free Cash Flow 55.0 0.0% -12.5 % to Net Sales Net Income/Loss per Share(yen) YoY 1.7% 15.0 - 55.0 27.5 0.5% -4.82 5.77 10.59 -112.6 0.0 112.6 Note: Assumed exchange rates for FY12/3 1$=¥80, 1€=¥110 *Forecasts as of May 10, 2011 Page 14 © NEC Corporation 2011 Financial Forecasts for FY12/3 by Segment Net Sales FY12/3 Forecasts Operating Income/Loss (Billions of Yen) 3,583.1 IT Services Platform Carrier Network Social Infrastructure Personal Solutions Others 3,115.4 90.0 3,300.0 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 400.0 760.0 325.0 53.2 Carrier Network 31.3 Social Infrastructure 21.7 Personal Solutions 18.9 -1.7 Platform 766.5 765.0 Others 244.7 240.0 FY11/3 FY12/3 Forecast Eliminations/ Unclassifiable expenses -44.9 57.8 21.4 8.9 40.7 14.6 7.3 -1.9 -33.2 33.0 14.0 57.0 15.0 15.0 6.0 -50.0 -27.5 FY10/3 FY11/3 FY12/3 Forecast *Forecasts as of May 10, 2011 Page 15 © NEC Corporation 2011 FY12/3 Forecasts Sales Change (Year on Year) (Billions of Yen) Deconsolidation of consumer PCs, increase in smartphones Increase in sales from wireless broadband access, submarine cable systems, mobile backhaul, and network software Carrier Network +154.6 (+25.5%) Increase in sales from cloud related business such as data center services, and energy saving FY11/3 3,115.4 Personal Solutions -1.5 (-0.2%) Others -4.7 FY12/3 Forecast 3,300.0 Social Infrastructure +6.2 (+1.9 %) Platform +24.2 (+6.4%) Strong demand in social systems, mainly in broadcasting, and fire and disaster preventions IT Services +5.8 (+0.7%) Expand new solutions for cloud services, exploit global markets *Forecasts as of May 10, 2011 Page 16 © NEC Corporation 2011 Operating Income Change (Year on Year) (Billions of Yen) Improvement in profitability for mobile terminals Increase in sales, lower costs Higher profits from sales increase due to improved break even point Others -1.3 Personal Solutions +16.9 FY12/3 Forecast Social Infrastructure +0.4 Carrier Network +16.3 90.0 Eliminations/ Unclassifiable expense -16.8 FY11/3 57.8 FY12/3 Forecasts Platform +5.1 IT Services +11.6 Increase in sales and continuous cost reduction efforts Control loss-making projects, enhance production and quality *Forecasts as of May 10, 2011 Page 17 © NEC Corporation 2011 Key Points of FY12/3 Outlook by Segment (Year on Year) IT Services l Reinforce new cloud solutions, sales expansion in global businesses l Improve profits by controlling loss-making projects and enhancing production and quality Platform l Increase in sales from cloud related business such as datacenter services, and energy saving l Higher profits from sales increase and continuous cost reduction efforts Carrier Network l Increase in sales from WBA*, submarine cable systems, mobile backhaul and network software l Higher profits from sales increase due to improved break even point Social Infrastructure * FY12/3 Forecasts l Increase in sales for social systems including broadcasting, and fire and disaster preventions l Higher sales from sales increase and lower costs Personal Solution l Flat sales from increase in smartphones, offset by deconsolidation of consumer PC business l Higher profits from improved profitability for mobile terminals Others l Decrease in sales from deconsolidation of LCD module business, despite expansion of battery business l Lower profits from sales decrease WBS: Wireless Broadband Access, including LTE and femtocell Page 18 Note: First bullets in the tables refer to changes in sales, second bullets refer to changes in profits © NEC Corporation 2011 FY12/3 Forecasts IT Services Business (Billions of Yen) YoY FY12/3 Key Measures ▐ Expand Sales l Expansion of cloud services Sales - Core systems by industry - Create new services by collaborating with customers - Provide one stop solution for mid to small businesses 810.0 l Proposal for Disaster Recovery solutions 804.2 - Review BCP, Datacenter services, Telework, Sharing-type business services, wide-range cooperation between local governments and medical services, Review Global SCM +0.7% Operating Income l Development of global businesses 33.0 21.4 - Expand competitive solutions in 5 regions (Public Safety, Healthcare, Signage, POS etc) - Support Japanese company with IFRS and enhancing group governance ▐ Improve Profitability FY11/3 *Forecasts as of May 10, 2011 Page 19 FY12/3 Forecast l Control loss-making projects l Enhance SI innovation and service delivery (utilizing SW factory) © NEC Corporation 2011 FY12/3 Forecasts Carrier Network Business (Billions of Yen) FY12/3 Key Measures YoY ▐ Sales expansion of new products released in FY11/3 and solid execution of projects already in hand l LTE, iPASOLINK, Femtocell 760.0 Sales 605.4 l Submarine cable system projects +25.5% Operating Income 57.0 40.7 ▐ Winning end-to-end business opportunities from data traffic expansion l Wireless broadband access, mobile backhaul, network software, submarine cable systems ▐ Creation and early launch of new businesses l M2M, smartphone solutions, energy l Cloud services for telecom carriers FY11/3 FY12/3 Forecast M2M: Machine to machine *Forecasts as of May 10, 2011 Page 20 © NEC Corporation 2011 FY12/3 Forecasts Personal Solutions Business (Billions of Yen) FY12/3 Key Measures YoY ▐ Business expansion l Business expansion of smartphones Sales 766.5 Mobile Terminals 765.0 +29.2% 303.5 392.0 Operating Income/loss PC and Others - Stronger and competitive product lines with thin and toughness technology, cost competitiveness with global model development, business development of smartphone business in Japan and overseas by regionalization approach -0.2% 463.0 -1.9 FY11/3 l Starting up of tablet device business -19.4% 373.0 15.0 - Provide competitive tablet devices coupled with services ▐ Improve profitability l Increase overall sales FY12/3 Forecast l Reduce costs and streamline development in mobile terminals *Forecasts as of May 10, 2011 Page 21 © NEC Corporation 2011 FY12/3 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 May 10, 2011 Page 22 © NEC Corporation 2011 III. Measures for Mid-term Growth Plan V2012 FY12/3 Business Environment ▐ Smartphone boom l Traffic upsurge Mobile terminals Carrier Network l High value added services/spread of corresponding applications ▐ Explosive increase of data processing in cloud computing due to digitalized information Platform l Stronger needs for “collecting”, “processing”, and “visualization” of information l Creation of new businesses across industry sectors by using analyzed data ▐ Realize “Any place, Any time”, “Real time” cloud services via cloud devices, connecting people and material goods in cloud computing IT Services Page 24 Personal Solutions © NEC Corporation 2011 Social Infrastructure Further Development in Cloud Services ▐ Deliver “Mobile Cloud Services” with RFID and “Cloud Work Style” with cloud services, connected everywhere via Cloud Devices Mobile Cloud Services customer trait AP Attendance management AP Support management AP C&C Cloud Work Style SFA ・・・ Cloud Desktop data Printing data Cloud for business operations Cloud Desktop service ID Management Server Cloud Printing service Cloud Devices RFID tags ID RFID mobile phones Page 25 + Employee ID card © NEC Corporation 2011 ****** Password ID + Employee ID card ****** Password Development of new devices and vertical integration business ▐ Offer tablet devices to support various needs by enhancing NEC’s unique “Only One” products and all-purpose products l Business status * : Approximately 200 cases under negotiation, focusing on five areas 7 inch 1display (For 3G/LTE) Market e-books /Newspaper Education Electric Power/Houses Distribution /Retail Living support 7 inch keyboard Industry 7 inch 2 display Proposed solutions and services Publishing/Printing/Book store/Carrier E-books/Newspaper service Learning, Coaching school, school E-learning Power, energy/houses, housing HEMS/Home electronics/Home security Mail order/Department store/Supermarket Net-shopping/Coupon/Catalog Medical/Health/Local governments/CATV Photo frame/Remote monitoring/Healthcare/Remote medical care *As of May 10, 2011 Page 26 © NEC Corporation 2011 Expansion of smartphones by using NEC’s strengths ▐ Expand global business leveraging NEC’s own thin and light technology and toughness technology from CHMC Expand Channel by merger effect with CHMC NEC’s Strength NTT Docomo Thin and light technology KDDI Based on feature phone business Softbank Mobile Toughness technology Verizon Wireless By merger effect with CHMC Other global carriers (Waterproof, Dust-proof, Toughness) (North America、Europe) Steps to expand global businesses First step (-FY2012) Second step (FY2012-) Enter global market with competitive differentiated products (slimness, toughness, and waterproofed) Expand business in the global market with volume CHMC:Casio Hitachi Mobile Communications Page 27 © NEC Corporation 2011 Accelerating efforts with One NEC formation in 5 regions ▐ Established new regional headquarters for Latin America in Brazil on April 2011 Speedy business operations Clarification of responsibility and authority l Competence center for Femtocell in London EMEA Aggregate customer needs in each region and provide solutions from Japan North America Greater China l Competence center for Carrier Cloud in Spain Competence Center APAC l Expand business knowhow from the competence center to each region l NEC Biometrics Excellence Center l Competence center in Bangalore, India for public safety solutions in Singapore Page 28 l Competence center for public safety solutions in Argentina © NEC Corporation 2011 Latin America l NEC Latin America in Sao NEW Paulo, Brazil. The world of “C&C Cloud” Services for Carriers Services for Consumers Services for Enterprises Services for Governments Digitization of all information Data Data Data Data Data IT Platform/Network Sensors/Devices Sensors/Devices Mobile Cloud Services through various terminals and devices An information society friendly to humans and the earth Page 29 © NEC Corporation 2011 Summary of FY12/3 Objectives ▐ Noting that FY12/3 results will affect the outcome of V2012 mid-term growth plan, operate with speed and intensity ▐ Challenge to create and gain new business opportunities toward global business expansion ▐ Reinforce business structure to maximize profits To achieve and overcome FY12/3 targets* (Operating profit target 90B yen, net profit target 15B yen) *Forecasts as of May 10, 2011 Page 30 © NEC Corporation 2011 Efforts to Accelerate Post-quake Reconstruction ▐ NEC Group is aspired to carry out actions “To realize an information society friendly to humans and the earth” Disaster Recovery PJ Energy Recovery PJ Support continuance of businesses through NEC’s IT platforms, network, solutions including sensors and devices, and cloud services Contribute to energy saving measures through NEC’s battery, energy management, and knowhow of energy saving products NEC Group is dedicated to realize a “safe and secure”, “energy-efficient” society, by working with our customers, through ICT technology and C&C cloud. Page 31 © NEC Corporation 2011 Page 32 © NEC Corporation 2011 © NEC Corporation 2011 Financial Results for FY11/3 (Appendix) FY11/3 Results Summary of Financial Results for FY11/3 (Billions of Yen) Q4(January to March) FY10/3 FY11/3 Actual Actual Full Year YoY FY10/3 FY11/3 Actual Actual YoY 1,104.1 925.5 - 16.2% 3,583.1 3,115.4 - 13.1% -84.6 Operating Income 96.1 70.2 -25.9 50.9 57.8 6.9 -2.2 % to Net Sales 8.7% 7.6% 1.4% 1.9% 105.7 49.3 49.4 0.0 -49.4 -10.0 % to Net Sales 9.6% 5.3% 1.4% 0.0% Net Income/Loss 64.6 41.1 -23.9 -12.5 % to Net Sales 5.9% 4.4% -4.82 Net Sales Ordinary Income -56.5 -23.6 Free Cash Flow 168.5 81.9 11.4 -12.5 0.3% Net Income/Loss per Share(yen) -86.6 - 5.04 -4.82 -9.86 93.6 -112.6 -206.2 (Ref): Average exchange rate for Q4(Jan-Mar) of FY11/3 1$= ¥82.88, 1€= ¥111.13 Average exchange rate for full year of FY11/3 1$= ¥86.45, 1€= ¥113.83 (Assumed exchange rate for Q4 of FY11/3 1$=¥80, 1€=¥110) Page 34 Difference from Feb 25 © NEC Corporation 2011 FY11/3 Results Results for FY11/3 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 Social Infrastructure Personal Solutions Net Sales Operating Income % to Net Sales Net Sales Operating Income % to Net Sales Net Sales Operating Income/Loss % to Net Sales Net Sales Others Operating Income/Loss % to Net Sales Eliminations/ Unclass ifiable expenses Operating Income/Loss Net Sales Total Operating Income % to Net Sales Page 35 Q4(January to March) FY10/3 FY11/3 YoY Actual Actual 301.5 262.2 - 13.0% 40.2 24.5 -15.7 13.3% 120.6 12.1 9.3% 116.5 12.4 10.0% 175.9 16.9 9.6% 122.2 18.4 15.1% 3.6% 0.9 1,104.1 96.1 7.3% 11.0 627.4 31.3 316.6 21.7 - 8.7% -10.4 737.7 18.9 - 66.3% 2.6 661.4 -44.9 7.6% © NEC Corporation 2011 1.4% 0.8 0.9 - 3.5% 9.4 -34.6 0.7 0.7% -7.1 3.8 1.6 3.9% -20.8 -13.5 -1.9 - 63.0% 52.2 -15.3 1.3 -5.6 - 13.1% 6.9 3.8 -84.6 -2.2 - 244.7 7.3 -27.5 3,583.1 50.9 0.6% 10.6 4.6% 2.6% -5.4 - 16.2% -25.9 -25.8 -8.6 6.7% 766.5 -1.9 - - 7.2% -31.8 2.4% 318.8 14.6 6.9% Difference from Feb 25 2.7% 605.4 40.7 5.0% - 6.4% -8.3 YoY 375.8 8.9 - 4.7% -4.5 925.5 70.2 8.7% 373.7 -1.7 - 62.3 2.9 0.2% - 3.4% 0.4 8.8% 181.5 -3.2 185.2 0.4 6.1% 14.8% 114.3 10.1 198.7 7.2 FY10/3 Actual 866.3 53.2 10.7% 188.7 27.9 Full Year FY11/3 Actual 804.2 21.4 3.0% -33.2 3,115.4 57.8 1.9% FY11/3 Results Sales Proportion By Segment Others 8% Personal Solutions 25% Social Infrastructure 10% Page 36 IT Services 26% Sales for FY11/3 ¥3,115.4 Billion Platform 12% Carrier Network 19% © NEC Corporation 2011 FY11/3 Results IT Services Business (Billions of Yen) Q4 Operating margin ratio Full Year Operating margin ratio 5.6% 13.3% YoY 6.1% 12.3% Sales 9.3% Sales 326.8 2.7% 933.8 866.3 804.2 301.5 262.2 Operating Income 40.2 Operating Income -7.7% 40.2 51.8 -13.0% -7.2% 53.2 24.5 Page 37 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 -7.2% 21.4 FY09/3 FY10/3 FY11/3 FY11/3 Results IT Services Business (YoY) ▐ Sales 804.2 (-7.2%) (Billions of Yen) s SI Services : Decrease due to delay in the recovery of IT investments in Japan and decrease in large-scale overseas projects, despite making efforts to propose solutions to expand customers’ sales and solve business challenges w Outsourcing/ Support Services : Stable sales by expanding SaaS menu and the cloud services business ▐ Operating Income 21.4 (-31.8) s Decline due to sales decrease, an increase in investment for expanding service/global businesses and loss-making projects Page 38 © NEC Corporation 2011 FY11/3 Results Platform Business (Billions of Yen) Q4 Operating margin ratio Full Year 10.0% Operating margin ratio 10.7% 4.2% 2.4% - 0.5% Sales 375.8 373.7 120.6 116.5 -8.5% Operating Income Operating Income/Loss -20.4% 12.1 +0.6% 11.5 -3.4% 8.9 12.4 5.6 Page 39 2.4% Sales 469.4 131.8 YoY -1.7 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 FY09/3 FY10/3 FY11/3 FY11/3 Results Platform Business ▐ Sales (YoY) 375.8 (+0.6%) (Billions of Yen) r Software : Increase in system integration through virtualization, and cloud computing platform for enterprise, government and datacenter s Hardware : Decline due to downward trend in system renewal cycles, despite an increase in UNIX servers and IA servers w Enterprise Network : Remain flat from the previous year by focusing on areas where customers invest aggressively (e.g. cost savings solutions) and accomplishment of large scale projects, despite exchange rate fluctuations ▐ Operating Income 8.9 (+10.6) r Turn a profit due to continual cost reduction efforts and improvement of development efficiency Page 40 © NEC Corporation 2011 FY11/3 Results Carrier Network Business (Billions of Yen) Q4 Full Year 14.8% Operating Margin Ratio Operating Margin Ratio 8.8% 6.7% 6.4% 9.6% Sales 5.0% 807.0 Sales 232.6 Operating Income 20.4 627.4 188.7 175.9 Page 41 YoY 51.6 +7.3% -24.4% 605.4 Operating Income -22.3% -3.5% 40.7 27.9 31.3 16.9 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 FY09/3 FY10/3 FY11/3 FY11/3 Results Carrier Network Business (YoY) ▐ Sales 605.4 (-3.5%) (Billions of Yen) r Increase in sales in Japan, due to CATV projects with supplementary budgets and sales expansion in wireless broadband access businesses for LTE and Femtocell s Delay of some submarine cable system projects in hand to next term s Decrease in sales due to exchange rate fluctuations and slower recovery in markets, despite introduction of new full-IP PASOLINK products ▐ Operating Income 40.7 (+9.4) r Sales and profits turned upward in 2H, leading to increase in overall sales and profits for the full year Page 42 © NEC Corporation 2011 FY11/3 Results Social Infrastructure Business Q4 Full Year (Billions of Yen) YoY 6.9% 15.1% Operating Margin Ratio Operating Margin Ratio 8.8% 2.3% 4.6% 5.5% Sales Sales 340.4 124.7 122.2 316.6 318.8 -7.0% +0.7% 114.3 -2.0% 21.7 -6.4% 18.4 Operating Income 10.1 6.9 Page 43 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 Operating Income 14.6 7.9 FY09/3 FY10/3 FY11/3 FY11/3 Results Social Infrastructure Business (YoY) ▐ Sales 318.8 (+0.7%) (Billions of Yen) r Remain flat from the previous year due to an increase in social systems such as transportation and fire prevention offset by a decrease in aerospace and defense systems ▐ Operating Income 14.6 (-7.1) s Decrease from the previous year, where there were high profit projects, and an increase in initial costs for strengthening framework despite enhancing cost reduction activities such as project management Page 44 © NEC Corporation 2011 FY11/3 Results Personal Solutions Business Q4 Full Year (Billions of Yen) YoY 2.6% 3.6% Operating Margin Ratio Operating Margin Ratio -1.7% - 1.8% -4.1% -0.2% Sales Sales +4.6% 198.7 189.9 66.1 75.1 Operating Income/Loss PC and Others Page 45 114.8 -7.8 +2.6% Mobile 348.1 Terminals -18.8% +7.4% 303.5 282.5 67.8 +15.5% 132.6 766.5 737.7 181.5 -12.0% Mobile Terminals 848.4 -8.7% +3.9% -13.0% 7.2 Operating Income/Loss PC and 500.3 Others -14.3% 113.7 -3.2 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 +1.7% -9.0% 455.2 18.9 -1.9 -14.2 FY09/3 463.0 FY10/3 FY11/3 FY11/3 Results Personal Solutions Business ▐ Sales 766.5 (YoY) (Billions of Yen) (+3.9%) r Mobile Terminals : Increase due to synergy effects from business integration, despite sluggish sales of feature phones r PC and Others : Increase from overseas business, such as public displays and digital cinema projectors, despite lower sales from price declines in PCs ▐ Operating Loss -1.9 (-20.8) s Decrease due to higher development costs for smartphones and new devices, in addition to sluggish sales of feature phones Page 46 © NEC Corporation 2011 FY11/3 Results Others (Billions of Yen) Q4 Operating margin ratio Full Year 0.2% 4.7% Operating margin ratio YoY 3.0% -10.7% -6.8% Sales 816.7 -48.8% 661.4 185.2 Sales 133.6 +38.6% 62.3 Operating Income/Loss -65.2 Page 47 -19.0% -66.3% 0.4 -63.0% 244.7 Operating Income/Loss 2.9 FY09/3 FY10/3 FY11/3 <Jan-Mar> <Jan-Mar> <Jan-Mar> © NEC Corporation 2011 -87.1 FY09/3 -44.9 FY10/3 7.3 FY11/3 FY11/3 Results Others ▐ Sales (YoY) 244.7 (-63.0%) s Decrease due to deconsolidation of NEC Electronics (current Renesas Electronics) ▐ Operating Income 7.3 (+52.2) r Improve due to deconsolidation of NEC Electronics (current Renesas Electronics) which recorded operating loss in the previous year Page 48 © NEC Corporation 2011 (Billions of Yen) FY11/3 Results <Ref.> Financial Positions (Billions of Yen) End of Mar End of Mar 2010 2011 2,937.6 2,628.9 -308.7 Net Assets 931.9 875.4 -56.5 Interest-bearing debt 729.5 675.8 -53.8 Shareholder's Equity 790.9 757.1 -33.9 Total Assets Equity ratio(%) 26.9% 28.8% 1.9pt D/E ratio 0.92 0.89 0.03pt Net D/E ratio 0.50 0.62 - 0.12pt 330.5 203.9 Balance of cash and cash equivalents Page 49 Difference from Mar 2010 © NEC Corporation 2011 -126.7 <Ref.> Capital Expenditures and Others (Billions of Yen) FY10/3 FY11/3 Actual Actual YoY Difference from Feb 25 FY12/3 Forecast YoY 83.1 52.9 - 36.4% -22.2 80.0 51.4% Depreciation 111.2 62.1 - 44.2% -12.9 65.0 4.7% R&D expenses 276.0 176.5 - 36.0% -23.5 185.0 4.8% Capial Expenditure (Billions of Yen) FY10/3 FY11/3 Q4 Actual Q4 Actual R&D expenses 68.5 39.8 YoY -41.9% *Forecasts as of May 10, 2011 Page 50 © NEC Corporation 2011 FY11/3 Results <Ref.> Overseas sales (Billions of Yen) Q4(January to March) FY10/3 FY11/3 YoY Actual Actual Asia Europe Others Total Net Sales 84.3 38.9 To consolidated total sales (%) 7.6% 4.2% Net Sales 41.7 29.7 To consolidated total sales (%) 3.8% 3.2% Net Sales 60.9 50.2 To consolidated total sales (%) 5.5% 5.4% 186.8 118.8 16.9% 12.8% Net Sales To consolidated total sales (%) FY10/3 Actual - 53.8% - 28.8% - 17.5% - 36.4% Japan Full Year FY11/3 Actual 321.8 158.5 9.0% 5.1% 164.7 109.8 4.6% 3.5% 226.4 211.1 6.3% 6.8% 712.9 479.3 19.9% 15.4% FY11/3 Sales ¥3,115.4 Billion Major countries and regions YoY - 50.8% - 33.3% - 6.8% China,Chinese Taipei,India, Singapore and Indonesia UK,France,Netherlands, Germ any,Italy and Spain U.S.A - 32.8% Asia Overseas Sales ¥ 479.3 Billion Europe Others Overseas Sales Ratio 15.4% * Sales, based on customer locations, are classified by country or region Page 51 © NEC Corporation 2011 Financial Forecasts for FY12/3 (Appendix) FY12/3 Forecasts Summary of Financial Forecasts for FY12/3 by Segment (Billions of Yen) Net Sales IT Services Operating Income Full Year FY11/3 FY12/3 Actual Forecast(*) 804.2 810.0 21.4 33.0 % 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/ Unclas sifiable expenses Operating Loss Net Sales Total 4.1% 375.8 8.9 400.0 14.0 2.4% 3.5% 605.4 40.7 760.0 57.0 6.7% 7.5% 318.8 14.6 325.0 15.0 4.6% 4.6% 766.5 -1.9 765.0 15.0 - 2.0% 244.7 7.3 240.0 6.0 3.0% 2.5% % to Net Sales Net Sales Others 2.7% Operating Income % to Net Sales YoY 0.7% 11.6 6.4% 5.1 25.5% 16.3 1.9% 0.4 - 0.2% 16.9 - 1.9% -1.3 -33.2 -50.0 -16.8 3,115.4 57.8 3,300.0 90.0 5.9% 32.2 1.9% 2.7% *Forecasts as of May 10, 2011 Page 53 © NEC Corporation 2011 FY12/3 Forecasts Sales Proportion Forecast By Segment Others 7% Personal Solutions 23% Social Infrastructure 10% IT Services 25% Sales forecast for FY12/3 ¥3,300.0 Billion Platform 12% Carrier Network 23% *Forecasts as of May 10, 2011 Page 54 © NEC Corporation 2011 FY12/3 Forecasts IT Services Business (Billions of Yen) YoY Operating margin ratio 4.1% 2.7% Sales 810.0 804.2 Operating Income 810.0 (+0.7%) sOutlook for IT investments in Japan is unclear 6.1% 866.3 ▐ Sales +0.7% -7.2% rAim to increase with disaster recovery solutions and global business, in addition to proposals to expand customers’ sales and raise business efficiency 53.2 33.0 21.4 FY10/3 FY11/3 FY12/3 Forecast ▐ Operating Income 33.0 (+11.6) rAim to increase profit by controlling loss-making projects, and enhancing SI innovation and service delivery *Forecasts as of May 10, 2011 Page 55 © NEC Corporation 2011 FY12/3 Forecasts Platform Business (Billions of Yen) YoY Operating margin ratio 2.4% 3.5% - 0.5% Sales 400.0 375.8 373.7 +6.4% +0.6% 14.0 8.9 Operating Income/Loss ▐ Sales 400.0 (+6.4%) r Software : Expect to increase sales in server integration, virtualization and cloud computing platform by focusing on continual demands on datacenter r Hardware : Aim to increase sales by focusing on the products which meet the needs for datacenters and energy saving r Enterprise Network : Aim to increase sales by deploying office solutions worldwide, which contribute to energy saving and innovative work styles for customers -1.7 ▐ Operating Income 14.0 FY10/3 FY11/3 FY12/3 Forecast (+5.1) r Expect to improve through sales increase and continual cost reductions *Forecasts as of May 10, 2011 Page 56 © NEC Corporation 2011 FY12/3 Forecasts Carrier Network Business (Billions of Yen) YoY Operating Margin Ratio 6.7% 7.5% 5.0% 627.4 605.4 +25.5% 57.0 -3.5% Operating Income 760.0 (+25.5%) r Focus on wireless broadband access, network software, and new businesses in energy related areas in Japan r Aim to increase by submarine cable systems through solid execution of large scale projects in hand 760.0 Sales ▐ Sales 40.7 r Aim to expand sales in India, Latin America, Middle East, Russia with new full-IP PASOLINK products 31.3 ▐ Operating Income 57.0 FY10/3 FY11/3 FY12/3 Forecast (+16.3) r Anticipate higher profits from an increase in sales in Japan, and sales recovery of submarine cable systems and PASOLINK *Forecasts as of May 10, 2011 Page 57 © NEC Corporation 2011 FY12/3 Forecasts Social Infrastructure Business (Billions of Yen) YoY Operating Margin Ratio 6.9% 4.6% Sales 325.0 318.8 316.6 Operating Income 4.6% 325.0 (+1.9%) 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 +1.9% +0.7% 21.7 ▐ Operating Income 15.0 14.6 FY10/3 ▐ Sales FY11/3 15.0 (+0.4) r Expect higher profits due to sales increase and cost reductions FY12/3 Forecast *Forecasts as of May 10, 2011 Page 58 © NEC Corporation 2011 FY12/3 Forecasts Personal Solutions Business (Billions of Yen) YoY Operating Margin Ratio 2.6% 2.0% ▐ Sales Sales 737.7 -0.2% 766.5 765.0 Expect to increase by launching fullscale smartphone business in Japan and overseas sPC and Others : +7.4% Expect decrease due to the deconsolidation of consumer PCs +29.2% Mobile 303.5 282.5 Terminals Operating (-0.2%) rMobile Terminals : -0.2% +3.9% 765.0 392.0 Income/Loss +1.7% PC and Others 455.2 18.9 -19.4% 463.0 -1.9 FY10/3 FY11/3 373.0 15.0 FY12/3 Forecast ▐ Operating Income 15.0 (+16.9) r Expect higher profits due to sales increase in mobile terminals from shift to smartphones, and improvements in cost performance from slashing fixed costs, expenses and enhanced R&D efficiency. *Forecasts as of May 10, 2011 Page 59 © NEC Corporation 2011 FY12/3 Forecasts Others (Billions of Yen) YoY 3.0% Operating margin ratio 2.5% -6.8% ▐ Sales 240.0 (-1.9%) s Decrease from deconsolidation of NEC LCD Technologies r Expand business of Lithium-ion rechargeable batteries for automotive application Sales 661.4 -1.9% 244.7 240.0 Operating Income/Loss -44.9 FY10/3 ▐ Operating Income 6.0 (-1.3) -63.0% 7.3 FY11/3 s Expect a slight decline due to a decrease in sales 6.0 FY12/3 Forecast *Forecasts as of May 10, 2011 Page 60 © NEC Corporation 2011 Mid-term Growth Plan “V2012” Progress Progress in Focus Areas Focus Areas Main Accomplishments and Efforts in FY11/3 Cloud Japan l Core business operations in focus domains, new businesses with customers, rich service menu for mid to small businesses/organizations, establish and introduce preceding business track records l Provide total solution for LTE services Global l Reinforce operation framework for global business expansion Global l Establish new regional headquarters for Latin America l Set up competence centers in key business Batteries l Launch mass production of lithium-ion rechargeable batteries for automotives New Businesses l Participation in various field trials for smartgrid Devices l Launch smartphones and tablet devices Page 62 © NEC Corporation 2011 Cloud Cloud Business Activities / Achievements Financial accounting cloud service for 10 cities, Yamanashi Pref. l l l Ticketless service for Shiki Theatre Company l Integrated hotel cloud service for Nippon View Hotel l CRM Cloud for Sugi Holdings NEW Core system on cloud service for 7 cities, Nara Pref. NEW Government, Public, Medical Retail Service l Core system on cloud service for 3 cities Kasuya, Fukuoka Pref. l Education cloud for Sennan-city, Osaka Pref. l Collaboration with Sanyo on a regional medical care solution l SaaS-based electric medical records system for NEW Tamashima Daiichi Hospital in Kurashiki-city, Okayama Pref. l Collaboration with Sumitomo Life Insurance Company on cloud service Finance l Manufacturing / Equipment l l l NEW Cloud oriented accounting service for Exedy Integrated Construction companies Cooperation on Core infrastructure services Cooperation with Sumitomo Forestry, SaaS for the housing industry Telecom / Media l Private cloud for Sumitomo Mitsui Banking Collaboration with Telefonica on cloud business in Latin America l Collaboration with South Korea’s Shinsegae Group in digital signage Contributions to NTT DOCOMO’s LTEbased mobile phone service, "Xi™" Participation in KDDI’s field trial of LTE l Collaboration with KDDI on mobile cloud service © NEC Corporation 2011 NEW l l (Added after Q2 of FY11/3 financial announcement) Page 63 NEW NEW NEW NEW Global Business Activities / Achievements l Collaboration with Neusoft for Cloud services l Mail Processing Systems for Norway Post l Medical solutions for Hospital in Chongqing l RFID Temperature Traceability System for Jointown Pharmaceutical Group l POS system for the Guangzhou Baiyun International Airport CFCR in Netherlands l Global l IP Telephony system for InterContinental Hotels & Resorts Shanghai EXPO l IP based telephone and IPTV system solutions for Mandarin Oriental, l Transmitter for digital Macau broadcasting in Bulgaria lCollaborate on LTE infrastructure business l Collaboration with SomaLogic in with WRI of China aptamer related business NEW l SaaS services for Telefonica l Visa information systems Fingerprint identification system for Ministry of Foreign Affairs of Greece NEW l Global information system for Shiseido l Collaboration with SAP on cloud service NEW l Collaboration with Intel and Microsoft in digital signage NEW NEW l Cloud Computing Based Education System for l Asia Submarine-cable Express (ASE) NEW Argentina‘s San Juan l South-East Asia Japan Cable (SJC) system NEW Province Ministry of l Success in LTE field trial with Singapore Telecom Education l CFCR: Culler Facer Cancelling and Revenue protection system NEW Page 64 (Added after Q2 of FY11/3 financial announcement) © NEC Corporation 2011 Medical equipments location management of system for Albert Einstein Hospital new business New Business Activities (Battery, Smart Grid) NEW Heat, Hydro, Nuclear Power (Added after Q2 of FY11/3 financial announcement) Commercial Bldg, Apartment Factory, Bldg Data center Distribution, Substation Activities in EV Housing, Stores <EV Infrastructure> Commercial Facilities (convenience stores, gas stations, etc) Renewable Energy Renewable Energy Rapid chargers l Activities in ICT Start field trial of transfer blocking system for distributed power with Chugoku Electric Power l l l Form a business partnership with NEW SEKISUI CHEMICAL CO.,LTD in the field of Smart House Promote Membership-based Charging NEW Service for EV Start EV car sharing field trial with driving information l Rapid charge trials in the United States (Oregon) l Rapid charge trials with ENEOS and others NEW l Activities in Power Storage Page 65 l Works with Electric Power Research Institute (EPRI) to test large-scale electricity storage system using NEC’s Lithium-ion rechargeable battery l Joint development of a Building Energy Management Systems using lithium-ion rechargeable batteries with Meidensha Electric vehicles l Agreed to Co-operate with Enel Distribuzione on NextGeneration Smart Grid and Smart Cities NEW © NEC Corporation 2011 Electrodes for automotive lithium-ion rechargeable batteries are in mass production Reference (Financial data) Net Sales, Operating Income/Loss (Billions of yen) 8.7% Operating margin ratio 7.6% 3.0% 0.3% - 0.9% - 5.1% Net Sales -22.3% 1,104.1 -22.3% -8.4% 186.8 875.2 (16.9%) 825.4 186.9 -14.2% (21.2%) (Overseas Sales Ratio) (21.1%) 117.5 (16.3%) (17.1%) 70.2 24.3 2.3 -7.5 -13.5 -23.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 67 118.8 (12.8%) 128.8 (16.1%) Operating Income/ Loss -40.0 925.5 720.7 114.2 96.1 Domestic Sales -12.7% 801.6 667.5 175.2 (21.4%) 163.9 -16.2% -13.0% 778.5 Overseas Sales - 1.9% - 3.5% -3.1% FY11/3 © NEC Corporation 2011 YoY Sales, Operating Income/Loss (IT Services) (Billions of yen) 13.3% Operating margin ratio 9.3% 4.8% 4.4% 1.8% - 0.4% 301.5 - 3.5% Sales -7.7% 209.8 209.7 -10.8% 40.2 -1.4% -7.7% 171.0 161.2 -0.0% -8.8% -3.8% Operating Income/ Loss 10.2 24.5 9.2 3.4 -0.6 262.2 -13.0% 187.6 167.6 -6.6 -5.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 68 - 3.9% FY11/3 © NEC Corporation 2011 YoY Sales, Operating Income/Loss (Platform) 10.0% Operating margin ratio 10.7% YoY 3.0% 0.7% - 0.3% - 2.4% - 5.5% 120.6 116.5 - 19.1% 92.3 Sales 96.7 -8.5% 87.0 +4.8% -21.0% -19.8% -5.1% +8.3% -34.1% Operating Income/ Loss -14.1 12.4 12.1 0.7 -0.3 -4.4 2.9 -2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 69 -3.4% 82.5 80.0 73.9 FY11/3 © NEC Corporation 2011 (Billions of yen) Sales, Operating Income/Loss (Carrier Network) (Billions of yen) 14.8% Operating margin ratio YoY 9.6% 8.4% 7.1% 4.0% 1.4% 0.4% 175.9 166.9 Sales 154.2 142.9 141.7 188.7 - 5.1% -25.9% 116.8 -17.1% 145.7 +7.3% -24.4% -7.6% +2.0% -19.8% 27.9 -17.6% Operating Income/ Loss 16.9 11.8 2.0 0.5 13.0 -6.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 70 5.8 FY11/3 © NEC Corporation 2011 Sales, Operating Income/Loss (Social Infrastructure) (Billions of yen) 15.1% Operating margin ratio YoY 8.8% 4.7% 4.6% 0.9% - 1.2% 122.2 0.6% 0.7% 114.3 -2.0% Sales 72.4 64.7 57.2 18.4 -18.1% 66.6 58.4 +9.7% +3.0% -4.1% -4.3% Operating Income/ Loss +2.0% 10.1 3.7 3.4 0.6 -0.7 0.4 0.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 71 -6.4% 79.5 FY11/3 © NEC Corporation 2011 Sales, Operating Income/Loss (Personal Solutions) (Billions of yen) Operating margin ratio YoY 4.6% 2.0% 3.6% - 0.2% - 0.4% 1.6% - 0.8% - 1.8% Sales +4.6% -17.1% 194.9 -13.4% -23.6% PC and Others 198.7 198.5 193.5 66.1 93.2 63.9 -8.7% 193.0 76.3 79.1 59.3 181.5 80.3 67.8 Operating Income/ Loss 101.7 8.9 117.4 103.5 132.6 7.2 3.4 -0.7 122.3 114.4 3.3 113.7 112.7 -1.6 -0.4 -3.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 72 +9.2% 176.7 167.4 Mobile Terminals +18.6% -0.7% FY11/3 © NEC Corporation 2011 Sales, Operating Income/Loss (Others) (Billions of yen) 6.6% Operating margin ratio 0.2% YoY 2.1% - 7.8% - 2.0% - 4.6% - 17.2% Sales 185.2 166.5 166.5 143.1 +38.6% -31.2% -16.7% -62.2% -40.7% -59.8% -24.7 63.0 57.6 Operating Income/ Loss -7.7 -12.9 0.4 -1.1 -62.8% -66.3% 61.9 62.3 4.2 1.3 2.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> FY10/3 Page 73 4.7% FY11/3 © NEC Corporation 2011 Exchange Rate (Yen) 130 Euro/Yen Exchange rate(Actual) 125 Assumed Exchange rate 120 115 110 Average exchange rate ¥113.83 105 100 100 Dollar/Yen Exchange rate(Actual) Assumed Exchange rate 95 90 Average exchange rate ¥86.45 85 80 75 4/1 Page 74 6/30 9/30 © NEC Corporation 2011 12/30 3/31 Stock Price (Yen) Apr 28:Revision of Financial Forecast 12,000 320 NEC May 12:FY10/3 Earnings 11,500 Jun 22:Shareholder Meeting 11,000 the Nikkei Stock Average 300 Oct 13:NEC IR Day (IT Services) 280 Jul 28:Q1 of the FY11/3 Earnings 10,500 260 10,000 240 9,500 220 Jul 1:Investors Meeting (R&D) 9,000 Jul 8:NEC IR Day (Carrier Network) 8,500 200 Jan 27:Q3 of the FY11/3 Earnings Feb 9:NEC IR Day (Platform) 180 Oct 28:Q2 of the FY11/3 Earnings Feb 25:Revision of Financial Forecasts 8,000 160 4/1 Page 75 5/12 6/22 7/28 10/28 © NEC Corporation 2011 12/30 1/27 2/25 3/31 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.