NEC 2009 Annual Report Download - page 8

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( I ) BUSINESS RESTRUCTURING
NEC sees the prevailing challenging business
environment as the perfect opportunity to enhance
its business operations. That is why we are working
hard to change our business structure and imple-
ment profit structure reforms.
In terms of changing our business structure, we
are concentrating on core competencies by realign-
ing the NEC Group’s business portfolio and focusing
resources on future growth areas.
In this context, in the Electron Devices business,
which suffered a major performance setback in the
past fiscal year, we are stepping up efforts to
rebuild both the semiconductor and electronic
components businesses.
In the semiconductor business, we implemented
measures to drastically reduce fixed costs, including
the closure of certain production lines at NEC
Electronics Corporation ahead of schedule. In
addition, we worked to raise the efficiency of all
INNOVATING NEC
2.
manner of costs, including production, capital
expenditures and R&D, with the aim of turning
around our performance as early as possible.
In the electronic components business, NEC
TOKIN Corporation strove to withdraw from unprof-
itable businesses and reorganize production bases,
among other initiatives. In addition, NEC TOKIN was
made a wholly owned subsidiary of NEC to concen-
trate management resources in growth domains
such as the automotive lithium-ion battery business
as part of efforts to develop a system for more
efficiently conducting business operations going
forward. In the LCD display business, NEC has
taken steps to merge and consolidate production
bases and reduce the number of personnel.
In the personal solutions business, we have also
taken drastic measures such as withdrawing from
businesses in Europe and Asia that had continued
to post losses.
06 NEC CORPORATION
Annual Report 2009