NEC 2013 Annual Report Download - page 12

Long-term Growth and Profitability with Solutions for Society as the Driving Force
FY2013/3
(Actual)
FY2016/3
(Plan)
0
1,000
2,000
3,000
4,000
FY2013/3
(Actual)
FY2016/3
(Plan)
0
50
100
150
200
250
Approx. ¥100
b llion is planned
as SDN, smart
energy,
safety-related
investment
3,200.0
Approx.
70%
3,071.6
Approx.
60%
150.0
114.6
Approx. 8%
Operating
income ratio
Approx. 7%
Demand for energy is expected to increase in
step with population growth going forward.
NEC is focusing on the smart energy
business to solve this social issue by
efficiently utilizing resources. In fiscal 2013,
the NEC Group began mass production of
small-scale energy storage systems for homes
at NEC Computertechno, Ltd.’s Kofu factory.
In addition, the NEC Group received an order
from Italian company Enel Distribuzione
S.p.A. to provide a 2 MWh lithium-ion energy
storage system for field trials. This is one of
the highest capacity systems in Europe of its
type. In these and other ways, the NEC
Group steadily pressed forward with
initiatives aimed squarely at future business
expansion. Furthermore, in April 2013, NEC
established ONE Energy Corporation with
ORIX Corporation and EPCO Co., Ltd. The
new company has begun to provide energy
services for homes by renting out energy
storage systems.
Under฀“Mid-term฀Management฀Plan฀2015,”฀
we plan to focus on Solutions for Society. In
addition to the above activities, we are
pursuing efforts to integrate our strong
storage battery technology and ICT to create
new energy service businesses. By using ICT
to build frameworks for operating storage
batteries and other energy components, we
will work to develop solutions to enable
self-sufficient, decentralized and diversified
supplies of energy as part of contributing to a
more robust energy infrastructure.
Going forward, we remain focused on
expanding NEC’s smart energy business by
developing better solutions through alliances
with major partners in Japan and overseas,
together with the development of related
sales channels.
Smart Energy Business Activities
net sales. Our aim is for this figure to rise to around
70% in the fiscal year ending March 2016, with
these operations providing a reliable base of
earnings to help us achieve a 5% consolidated
operating income ratio. We also plan to invest about
¥100 billion during the three-year plan period in the
critical sectors of SDN, smart energy and safety,
since our forecast is for these markets to enter a
full-fledged expansion phase after this three-year
plan period. These areas are positioned to be a key
source of NEC’s long-term growth.
are also focusing on the enhancement of partnering
and the expansion of OEM sales to support the growth
in global sales volumes. Based on these initiatives, our
aim is to increase sales in this domain to approximately
¥800 billion in the fiscal year ending March 2016.
By focusing on developing businesses based on
“Solutions for Society,” we plan to expand the scale
of our operations and improve profitability over the
long term. In the fiscal year ended March 2013,
sales from existing Solutions for Society were
roughly ¥1,800 billion, or 60% of total consolidated
* Projected figures are as of April 26, 2013. Fiscal 2013 figures of Solutions for Society are approx.
Public, Enterprise, and Smart Energy
Telecom Carrier
System Platform
Other businesses (Operating income includes deductions)
NET SALES
(Billion ¥)
OPERATING INCOME
(Billion ¥)
Solutions for society
➡ Quickly generate
70% of total net
sales from
Solutions for
Society with an
operating income
ratio of 8% (5% for
the Company as a
whole)
Long-term growth
11 NEC Corporation
Annual Report 2013