Financial Highlights NEC CORPORATION AND CONSOLIDATED SUBSIDIARIES For the years ended March 31, 1996, 1997 and 1998 In thousands of U.S. dollars In millions of yen 1996 Net sales..................................................................................... ¥4,397,192 3,169,874 Information/communications systems operations ................. 1,227,016 Communications systems and equipment......................... 1,942,858 Computers and industrial electronic systems.................... 1,032,983 Electron devices operations................................................... Others..................................................................................... 194,335 1997 1998 1998 ¥4,948,437 3,765,074 1,686,594 2,078,480 963,176 220,187 ¥4,901,122 3,694,488 1,717,259 1,977,229 988,784 217,850 $36,850,541 27,778,105 12,911,722 14,866,383 7,434,466 1,637,970 Percent change 1998/1997 –1% –2 2 –5 3 –1 Income before income taxes...................................................... 151,318 121,222 90,993 684,158 –25 Income taxes.............................................................................. 76,376 24,900 48,033 361,150 93 Net income ................................................................................. 77,166 91,581 41,302 310,541 –55 Per share of common stock (in yen and U.S. dollars): Net income Basic................................................................................... Diluted ................................................................................ Cash dividends....................................................................... 49.98 45.14 11.00 59.05 51.38 11.00 25.94 24.05 11.00 0.195 0.181 0.083 –56 –53 0 Per American Depositary Share, each representing 5 shares of common stock (in yen and U.S. dollars): Net income Basic................................................................................... Diluted ................................................................................ Cash dividends....................................................................... 250 226 55 295 257 55 130 120 55 0.98 0.90 0.41 –56 –53 0 Total assets ................................................................................ 4,683,120 4,799,165 4,973,836 37,397,263 4 Shareholders’ equity .................................................................. 878,852 1,003,371 1,070,757 8,050,805 7 Capital expenditures .................................................................. 401,999 405,772 385,346 2,897,338 –5 R&D expenses............................................................................ 298,713 348,537 381,239 2,866,459 9 Employees.................................................................................. 152,719 151,966 152,450 0 Note: U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥133=U.S.$1. NET INCOME SHAREHOLDERS’ EQUITY (Billion ¥) (Billion ¥) 92 1,003 77 1,071 879 782 791 1994 1995 41 35 7 1994 NET SALES (Billion ¥) 4,948 4,901 1995 1996 1997 1998 NET INCOME PER SHARE OF COMMON STOCK (DILUTED) 4,397 3,580 (¥) 51 45 3,769 24 22 4 1994 1995 1996 1997 1998 1994 1995 1996 1997 1998 1996 1997 1998 1