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TO OUR SHAREHOLDERS
In fiscal 2011, NEC continued to face challenging business
conditions, highlighted by the slow recovery of IT investment in
Japan and sluggish investment by overseas telecom carriers.
Furthermore, the Japanese economy was significantly impacted by
the Great East Japan Earthquake in March 2011. As a result, NEC
was unable to achieve its initial business targets for fiscal 2011.
Efforts are underway to recover from the impact of the
earthquake. I wish to send my thoughts and prayers to all those
affected by the disaster. The NEC Group is fully committed to
contribute to quick recovery of the disaster stricken areas.
In fiscal 2011, although consolidated net sales dropped 13.1%
year on year to ¥3,115.4 billion, consolidated operating income
improved ¥6.9 billion from the previous fiscal year to ¥57.8 billion.
However, NEC posted a consolidated net loss of ¥12.5 billion,
¥23.9 billion worse than the net income result in the previous
fiscal year.
In light of these circumstances, NEC has decided not to pay an
annual dividend for fiscal 2011. We deeply regret that we must
report this decision to shareholders.
In February 2010, NEC unveiled its Mid-Term Growth Plan
“V2012—Beyond boundaries, Toward our Vision.” We are
currently pursuing the plan’s three key initiatives: focus on “C&C
Cloud Strategy,” expand global business and create new
businesses. The NEC Group is determined to help Japan
overcome the impact of the disaster earlier this year and recover.
At the same time, NEC is striving to implement speedier
management to realize the NEC Group Vision 2017, with the aim
of enhancing shareholder and corporate value over the medium
and long terms.
We look forward to your continued support and understanding as
we work to reach our goals.
June 2011
NOBUHIRO ENDO
President, NEC Corporation
02
NEC Corporation
Annual Report 2011