NEC 2009 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2009 NEC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

08 09
0
20
40
60
80
08 09
0
300
600
900
1,200
Seven & i Holdings Co., Ltd.
NEC Corporation
SEGMENT PERFORMANCE TRENDS
IT SERVICES BUSINESS
Initiatives to Create and Drive Growth in
New Markets: Established Seven Inter-
net Lab. Co., Ltd.
SALES
(Billion ¥)
OPERATING INCOME
(Billion ¥)
FISCAL 2009 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
In fiscal 2009, business segment sales declined 2% year on
year to ¥941.8 billion. This was mainly due to lower sales to
the financial sector, reflecting harsh market conditions.
Meanwhile, operating income declined ¥9.9 billion year on
year to ¥56.0 billion, in line with lower sales.
Despite the harsh operating environment, NEC constructed
a large number of systems centered on service businesses
and global operations, where it is concentrating efforts. In
service businesses, NEC generated sales across a broad
range of industry sectors. For example, NEC received an order
from seven cities and towns in the Okitama region of
Yamagata Prefecture for a system to provide operations such
as information for residents and pensions, and an internal
information system providing personnel affairs, accounting and
other functions in an ASP format over networks.
In global operations, NEC delivered a supply chain manage-
ment (SCM) system for Seiko Epson Corporation covering 11
sites worldwide. This system will be used to propose and
implement production, sales and inventory plans for printer
consumables. Elsewhere, in collaboration with ABeam
Consulting Ltd., NEC constructed a new backbone system for
the leading supplier of instant noodles in the U.S. market,*1
Maruchan, Inc.*2 The backbone system will enable the com-
pany to manage product information in real time from produc-
tion through sales while also supporting highly accurate
supply-demand forecasting and sales planning.
*1 Based on Maruchan, Inc. data on volume-based market share in 2008
*2 The manufacturing and sales company in North America for leading Japanese
general food manufacturer Toyo Suisan Kaisha, Ltd.
FOR FURTHER GROWTH
Looking ahead to the cloud computing era, NEC will bolster its
service businesses going forward, with the aim of generating
service business sales of over ¥500.0 billion over the medium
term. NEC is currently revamping all aspects of its backbone
IT system connecting NEC Corporation and its major affiliates
worldwide. The new system will be a “Cloud-oriented” service
provision platform that will provide sales, accounting and
materials purchasing system functions to each company and
division in the NEC Group via a datacenter. By introducing this
system, NEC aims to speed up management at the consoli-
dated level, improve business efficiency and lower TCO (total
cost of ownership). Once built, this new system will become
the reference model for supplying corporate clients with similar
solutions, thereby helping NEC to expand service businesses
that cater to the new era of cloud computing.
In global operations, NEC continues to refine its service
lineup in markets outside Japan to drive global business
expansion. In addition to supplying biometrics-related solu-
tions, where NEC has superior technologies, we are stepping
up sales activities for the Verticore Series™ of SAP® ERP-based
business solutions for the midsize enterprise market in Asia.
NEC is also targeting the development and growth of new
areas in addition to existing markets. Seven Internet Lab. Co.,
Ltd., a joint venture set up by NEC Corporation and Seven & i
Holdings Co., Ltd. to develop the theme of achieving innova-
tion through collaboration between the retail distribution and IT
sectors. This collaboration brings together the retailing know-
how of the Seven & i Group with NEC’s research and technical
expertise in information systems to research new possibilities
in retailing using the Internet.
Innovation through retail distribution—IT collaboration
Embracing the challenge of achieving innovation in the
retail distribution sector through retail distribution—IT
collaboration via R&D focused on the Internet, to help
enrich consumer lifestyles and society as a whole.
14 NEC CORPORATION
Annual Report 2009