NEC 2015 Annual Report Download - page 8

The fiscal year ended March 31, 2015 (the fiscal year under review) marked the second year of the “Mid-term Management
Plan 2015,” and during the year we focused on business activities aimed at achieving growth. Having declared our intention to
transform the NEC Group into a Social Value Innovator, we are engaging in businesses based on the three policies of focusing
on “Solutions for Society,” focus on Asia and the promotion of ‘locally-led’ businesses, and stabilizing our financial foundation.
We have positioned the fiscal year ending March 31, 2016 (the upcoming fiscal year), the final year of the mid-term
management plan, as a year for growth. In the upcoming fiscal year, we will grow our businesses and create the launching
point for the next mid-term management plan. In this feature, we introduce the achievements made during the second year of
the mid-term management plan, as well as initiatives we will undertake in the third year.
Main Initiatives and Performance in Fiscal 2015
(1) Focus on “Solutions for Society”
NEC concentrates its management resources in “Solutions for
Society,” and provides advanced social infrastructure using ICT
(information and communications technology). We are transforming
In the fiscal year under review, we focused on SDN (Software-Defined
Networking), a next-generation network technology that provides
both efficiency and safety. In Japan, NEC was selected as the partner
vendor for NTT DOCOMO, INC.’s development of network virtualization
technology. We progressed on preparations for a large-scale trial on a
commercial network aimed at launching Virtualized Customer Premises
Equipment (vCPE) solutions for Telefónica Brasil, S.A. Already, NEC has
delivered more than 250 systems for a variety of customers, including
hospitals, transportation systems, municipalities, telecom operators,
and data centers.
In the cloud business, we utilized the NEC Kanagawa Data
Center to expand sales of the “NEC Cloud IaaS” cloud platform
into a Social Value Innovator and aim to contribute to the realization
of an affluent society, a society that ensures safety, security,
efficiency and equality.
service. The strengths of our service are high cost performance,
strong performance, and high reliability. Furthermore, we will newly
build the NEC Kobe Data Center to strengthen the domestic data
center business.
In Big Data, we delivered a Predictive Monitoring and Diagnostics
System for large-scale plants to The Chugoku Electric Power Co., Inc.
This system detects abnormalities in equipment at an early stage and
provides information on locations of possible abnormalities, allowing
time for repairs before a malfunction occurs. In the state of Texas in
the U.S., we worked on a project for a Water Leak Detection Service.
By combining high-precision sensors and the cloud, this service allows
water utilities to manage water resources at low cost.
Mid-term Management Policy
Transformation into a “Social Value Innovator”
• Focus management resources on businesses that advance social infrastructure
through ICT
• Create new business models with the understanding that social problems
provide an opportunity for growth
Create a foundation for growth as a company able to compete globally
• Focus on emerging and developing countries, in particular in Asia
• Realize increased sensitivity to local needs, increased business speed
• Enhance cost competitiveness
• Create an earnings structure that generates operating income of ¥150
billion and free cash flows of ¥100 billion
• Use hybrid finance to ensure financial reserve
Achieve an
operating income
ratio of 5% and
an overseas sales
ratio of 25%
(1) Focus on Solutions for Society
(2) Focus on Asia, Promotion of “Locally-led” Businesses
(3) Stabilize Our Financial Foundation
Progress on “Mid-term Management Plan 2015”
07 NEC Corporation
Annual Report 2015