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In fiscal 2009, the fiscal year ended March 31, 2009, NEC steadily expanded its business related to
Next Generation Networks (NGNs) and delivered a solid performance in its IT Solutions business
targeting the public sector and the retail and services industries in Japan. However, the sharp
economic downturn from the second half of the fiscal year had a serious impact on the Electron
Devices business and other operations, leading to a significant deterioration in NEC’s performance.
As a result, in fiscal 2009, consolidated net sales were ¥4,215.6 billion, a year-on-year decline
of 8.7%. We recorded a consolidated operating loss of ¥6.2 billion. Reflecting this worsening
operating profitability, as well as equity in losses of affiliates and a loss on valuation of investment
securities, NEC recorded a consolidated net loss of ¥296.6 billion in fiscal 2009.
In light of these circumstances, NEC has regrettably suspended its annual dividend payment
for fiscal 2009. We deeply regret that we must report this outcome to our shareholders.
In fiscal 2010, we expect business conditions to become increasingly challenging amid the
continuing global economic downturn. However, we see this difficult environment as the perfect
opportunity to implement business reforms. NEC is thus making every effort to change its
business structure, centered on business portfolio realignment, and implement rigorous profit
structure reforms. We are also concentrating on core competencies, eyeing the next phase of
growth on a global basis after the current downturn. At the same time, we remain committed to
pursuing the NEC Group Vision 2017, which was announced in April 2008, with the aim of
enhancing shareholder and corporate value over the long term.
Through these measures, the NEC Group is determined to work as one to restore profitability
as soon as possible to ensure that it meets shareholder expectations. Your continued support
and understanding will be vital to this endeavor.
June 2009
KAORU YANO
President, NEC Corporation
03
NEC CORPORATION
Annual Report 2009