NEC 2013 Annual Report Download - page 13

Focus on Solutions for Society, Quickly Generate 25% Overseas Sales Ratio
750.0
483.1
FY2013/3
(Actual)
FY2016/3
(Plan)
0
300
600
900 Percentage of overseas
sales to consolidated
net sales
CAGR 15.8%
23%
16%
* Projected figures are as of April 26, 2013
(2) Focus on Asia, Promotion of “Locally-led”
Businesses
One of the goals of the Mid-term Growth Plan
“V2012” formulated by NEC in February 2010 was
to achieve significant growth in sales outside Japan.
Our operations in emerging markets did expand
over the course of the plan, but the goal of growing
significantly faster than the market was not
achieved. In light of this, rather than targeting a
certain level of growth in global terms, the “Mid-
term Management Plan 2015” strategic goals for
overseas development are (1) to focus on Solutions
for Society in Asia, a region projected to grow
significantly as urbanization continues, and where
we have already established a business base in
sectors such as safety and value in the NEC brand,
and (2) to focus on reinforcing and promoting locally
led businesses with wider regional development
potential that address specific local needs, based
on the creation of common platforms.
The focus on Asia was selected as one of the
axes of the global development of Solutions for
Society because markets across the region are
growing rapidly and demand for more advanced
social infrastructure is strong. Moreover, NEC has
competitive local subsidiaries in the region. We plan
to expand our business in Asia by targeting
urbanization-driven demand growth in domains
such as safety and smart energy. In the safety
domain, we are focusing on social ID solutions
using biometrics such as fingerprint recognition, an
area where NEC has established a track record in
Asia already. Other areas of business development
include surveillance systems for important buildings,
cyber security, and overseas marketing of disaster
prevention systems previously developed for the
Japanese market. In the area of cyber security,
which has become an essential component of IT
systems, we have sought to boost our
competitiveness based on close collaboration with
INTERPOL and the acquisition of Cyber Defense
Institute, Inc. In the area of smart energy, we are
focusing on creating new energy services by
combining ICT with storage battery technology,
where NEC has specific strengths. By partnering
with companies with significant expertise in these
fields, we aim to cater to increasing demand for
solutions in Asia and the rest of the world.
In developed countries, we are shifting from a
product export model to new business structures
and models. A specific area of focus is TOMS and
SDN for telecom carriers, both of which are
expected to be long-term market growth drivers. As
a global leader in this area, we are leveraging our
Public / Enterprise / Smart Energy
• Active expansion through provision of solutions tailored
to the advancement of social infrastructure (global
safety, smart energy, etc.)
Telecom Carrier
• Global expansion of TOMS and SDN, acceleration of
creation of models for expanding income
• Maintenance and expansion of wireless broadband
business
System Platform, Others
• Promotion of transition to unified communications in
business network terminals, etc.
OVERSEAS SALES
(Billion ¥)
Focus on
Solutions for
Society
(1) Focus on Asia
(Emerging/developing countries) (2) Promotion of “locally-led” businesses
12
NEC Corporation
Annual Report 2013
I
Business Report/Management Policies