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CARRIER NETWORK BUSINESS
577.2
0
800.0
600.0
400.0
200.0
2011 2012
602.7
37.9
0
60.0
20.0
40.0
2011 2012
50.6
6.6%
8.4%
0
60.0
20.0
40.0
2011 2012
50.7 52.7
8.4% 8.3%
6.3
0
8.0
6.0
4.0
2.0
2011 2012
4.3
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 figures for the former Carrier
Network business.
FISCAL 2012 PERFORMANCE AND MAIN
ACCOMPLISHMENTS
Business segment sales increased 4.4% year on year to
¥602.7 billion. This increase mainly reflected steady growth
in sales of mobile network infrastructure in Japan, as well
as submarine cable systems.
Operating income improved ¥12.8 billion year on year to
¥50.6 billion, mainly due to a sales increase in Japan and
submarine cable systems.
In fiscal 2012, NEC captured business opportunities
arising from data traffic growth driven by the uptake of
smartphones in Japan. Notably, NEC began shipping LTE
base stations to KDDI Corporation in addition to NTT
DOCOMO, INC. In overseas business, NEC won large
submarine cable system projects linking Japan and various
Asian countries, including the South-East Asia Japan Cable
system in April 2011 and the Asia Pacific Gateway system
in December 2011. In other areas, NEC made steady
progress with the launch of new ultra-compact microwave
communications system, “iPASOLINK” Series, which
extends its cover from access to metro area, following
commencement of sales in the previous fiscal year. NEC
had won more than 200,000 “iPASOLINK” orders on a
cumulative basis as of May 2012. The services and
management business expects to see market expansion
surpass growth in capital expenditures in network
infrastructure equipment. In this business, NEC launched
M2M solutions “CONNEXIVE,” in addition to acquisition of
the business support system division of Convergys
Corporation of the U.S. Through these initiatives, NEC
has reinforced its execution framework for bringing
globally competitive products and solutions to market as
early as possible.
FOR FURTHER GROWTH
Data traffic is projected to grow sharply with the rapid
uptake of smartphones in Japan and growing demand for
mobile phones in emerging countries, presenting major
business opportunities for NEC. In this environment, NEC
will continue to concentrate business resources on four key
NEC supplies equipment required for network implementation to telecom
carriers, along with network control platform systems and operating services.
NEC’s wealth of experience in large-scale network implementation and
strong technical capabilities contribute to the development of highly reliable
communications networks.
Shunichiro Tejima
Senior Vice President
19 NEC Corporation
Annual Report 2012