NEC 2008 Annual Report Download - page 23
Download and view the complete annual report
Please find page 23 of the 2008 NEC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13 -
14 -
15 -
16 -
17 -
18 -
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
 |
 |
In fiscal 2008, the year ended March 31, 2008, sales
of the IT/Network Solutions business rose 4% year
on year to ¥2,866.2 billion. By subsegment, sales in
the IT Services/SI area increased 7% year on year
to ¥832.5 billion supported by steady growth in sales
to almost all industries. In the Network Systems
area, sales increased 6% year on year to ¥1,086.0
billion as a result of strong sales to overseas com-
munications service providers, despite a decrease
in sales to mobile communications service providers
in Japan. In the Social Infrastructure area, sales were
up 12% year on year at ¥340.9 billion. On the other
hand, IT Products sales declined 7% year on year
to ¥606.8 billion, mainly reflecting the impact of the
transfer of sales operations for optical disk drives.
Overall, operating income improved ¥6.6 billion year
on year to ¥160.6 billion, mainly reflecting sales
growth in the IT Services/SI area and higher earnings
as a result of SI innovation activities.
Supported by firm domestic IT investment, NEC
achieved business expansion in almost all business
sectors during fiscal 2008. In particular, we expanded
our high-growth service platform business by offer-
ing a wide range of systems for video management/
dis tribution, billing and settlement, authentication,
and other systems. In addition, targeting global
development of our service platform solutions, we
strengthened our business alliances with six major
IT vendors*1. In the field of ERP (Enterprise Resource
Planning) systems demand for deploying SAP
s ystems is growing in various industries. Here, NEC
expanded SAP systems track records to the manu-
facturing and other sectors, by combining SAP
systems with applications where NEC excels. NEC
has formed a broad alliance with SAP AG, not only
in Japan, but also targeting global businesses in
Asia and other markets. The alliance covers a broad
range of activities from development and marketing
of solutions to sales.
NEC is actively creating and expanding new
markets using leading-edge technologies. One
example is RFID-related solutions, where tiny wire-
less chips are used to identify and track people or
objects. In Japan, we increased sales efforts in this
market through such activities as offering custom-
ers a location where they could conduct RFID trials
in simulated environments reflecting actual situa-
tions. As a result, we steadily continued to build on
our record for introducing RFID-related solutions in
materials and parts inventory management and
other systems in the manufacturing production
field. Based on these achievements in Japan, we
are planning to develop our business in China,
where the market for RFID-related solutions is
expected to expand. In March 2008, to drive busi-
ness expansion, we built an experimental facility in
Shanghai in cooperation with Tongji University.