NEC 2007 Annual Report Download - page 2

01 Financial Highlights (Japan GAAP)
02 Message From the Management
04 Message From the President
10 NEC’s Solutions for the NGN Era
16 At a Glance
18 Performance by Segment
Contents
28 R&D and Intellectual Assets Strategy
32 Corporate Governance
36 NEC’s Corporate Social Responsibility
38 Financial Section
115 Investor Information
116 Corporate Overview
CAUTIONARY STATEMENTS:
This annual report 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 U.S. Securities and Exchange Commission,
and in reports to shareholders and other communications. The U.S. Private Securities Litigation Reform Act of 1995 contains, and other applicable
laws may contain, a safe-harbor for forward-looking statements, on which NEC relies 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) uncertainty relating to NEC’s ongoing analysis necessary to prepare the financial
statements under U.S. GAAP for inclusion in the 2006 Form 20-F, (ii) global economic conditions and general economic conditions in NEC’s
markets, (iii) fluctuating demand for, and competitive pricing pressure on, NEC’s products and services, (iv) NEC’s ability to continue to win
acceptance of NEC’s products and services in highly competitive markets, (v) NEC’s ability to expand into foreign markets, such as China,
(vi) regulatory change and uncertainty and potential legal liability relating to NEC’s business and operations, (vii) NEC’s ability to restructure, or
otherwise adjust, its operations to reflect changing market conditions, and (viii) movement of currency exchange rates, particularly the rate
between the yen and the U.S. dollar. 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. You may
find more current information on the NEC home page (http://www.nec.com) or NEC Investor Relations home page (http://www.nec.co.jp/ir/en).
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. The securities may not be offered
or sold in any jurisdiction in which registration is required absent registration or an exemption from registration under the applicable securities
laws. For example, any public offering of securities to be made in the United States must be registered under the U.S. Securities Act of 1933
and made by means of an English language prospectus that contains detailed information about NEC and management, as well as NEC’s
financial statements.
CHANGE IN ACCOUNTING PRINCIPLES
NEC changed its accounting principles to prepare consolidated financial statements required under Japanese law
from accounting principles generally accepted in the United States of America (“U.S.GAAP”) to accounting principles
generally accepted in Japan (“Japan GAAP”) starting from the fiscal year ended March 31, 2007. Accordingly, the
financial statements for the fiscal year ended March 31, 2006 on this annual report presented under Japan GAAP for
comparison purpose.