NEC 2012 Annual Report Download - page 18

IT SOLUTIONS BUSINESS
1,189.2
1,180.0
2011 2012
0
300.0
600.0
900.0
1,200.0
1,500.0
0
60.0
20.0
40.0
2011 2012
30.3
44.8
2.6%
3.8%
SALES
(Billion ¥)
OPERATING INCOME,
OPERATING INCOME RATIO
(Billion ¥)
R&D EXPENSES*,
R&D EXPENSES RATIO*
(Billion ¥)
CAPITAL EXPENDITURES*
(Billion ¥)
Operating income
Operating income ratio
R&D expenses
R&D expenses ratio
* R&D expenses, the R&D expenses ratio and capital
expenditures represent the sum of corresponding figures
for the former IT Services and Platform businesses
3.9%
0
60.0
20.0
40.0
2011 2012
46.7 46.1
4.0%
0
8.0
6.0
4.0
2.0
2011 2012
6.7
6.9
FISCAL 2012 PERFORMANCE AND MAIN
ACCOMPLISHMENTS
Business segment sales increased 0.8% year on year to
¥1,189.2 billion. This increase mainly reflected steady
growth in the IT services business, mostly to government
agencies, local governments, medical institutions and the
manufacturing sector. This was despite lower sales in the
platform business, centered on hardware, primarily due to
the impact of the flooding in Thailand.
Operating income improved ¥14.5 billion year on year to
¥44.8 billion. This improvement was mainly due to higher
sales, fewer unprofitable projects and cost reductions in
the IT services business, which outweighed lower earnings
in the platform business due to lower sales and the impact
of the flooding in Thailand.
In fiscal 2012, in the IT services business, NEC remained
focused on increasing sales of Software as a Service
(SaaS) for specific business sectors and operations.
Examples included finance, accounting and payroll
management systems for 10 local government bodies in
Kanagawa Prefecture, and a SaaS-based electronic
medical record service for medical institutions.
Furthermore, NEC steadily built up its track record of
integration of private cloud systems for educational
institutions such as Tokai University, and integration of
business systems infrastructure for All Nippon Airways,
Co., Ltd.
In the platform business, NEC’s “UNIVERGE PF Series”
(ProgrammableFlow), the world’s first next generation
network products equipped with the new network control
technology OpenFlow, attracted considerable attention.
Given the extremely strong customer interest in these
products, which substantially reduce network operation
and management costs, NEC supplied “UNIVERGE PF
Series” products to enterprises and data center operators
worldwide. In addition, the “UNIVERGE PF Series” received
the “Best of Interop 2012” award at Interop Las Vegas
2012. In other areas, NEC has received many accolades
from customers for its platform products supporting cloud
computing. For example, NEC’s PC server “Express5800
series” achieved the No. 1 share*1 in the Japanese market
for the 16th consecutive year. NEC’s core cloud platform
NEC provides a range of IT services covering system integration,
maintenance and support, operation and outsourcing, as well as cloud
services. NEC also supplies the platforms essential to the development of IT
systems and enterprise network systems, such as servers, storage, software
and IP telephony systems. Using its extensive experience in developing
highly reliable systems backed by state-of-the-art IT and network
technologies, NEC aims to realize an information society friendly to humans
and the earth.
Takaaki Shimizu
Senior Vice President
REVIEW OF OPERATIONS
*1 Source: CY1996–2011 Japan x86 Server Market (Unit, Factory Revenue (Yen)), IDC, Worldwide Quarterly Server Tracker, 2012Q1
*2 Source: Nikkei Computer (16th Customer Satisfaction Survey, August 18, 2011 issue); 1st place integrated operation management software category
17 NEC Corporation
Annual Report 2012