NEC 2011 Annual Report Download - page 7

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Nobuhiro Endo
President, NEC Corporation
In fiscal 2011, the “V2012” plan’s first year, the
global economy on the whole moved closer to a
self-sustaining recovery, mainly due to continuing
economic growth in China, India and other
emerging countries, along with stimulus measures
in developed countries that supported their
economies. This was despite persistently high
unemployment rates in the U.S., European nations
and other developed countries, and the financial
crisis affecting certain European countries.
The Japanese economy saw consumer income
and employment conditions remain difficult, and did
not see a full-fledged recovery in capital investment.
However, manufacturing output gradually improved
on the back of recovering exports, while consumer
spending also increased steadily influenced by
economic stimulus measures. Nevertheless,
economic activity was hit hard by the devastating
Great East Japan Earthquake in March 2011, not to
mention the accompanying disruptions to production
and distribution, power shortages and other impacts.
In this business environment, NEC worked on the
three key initiatives of the “V2012”: Focus on the
“C&C Cloud Strategy,” expand global business, and
create new businesses. As a result, NEC started to
produce results, including winning projects or joining
field trials in each of these key initiatives. Additionally,
NEC integrated its mobile handset business with
Casio Hitachi Mobile Communications Co., Ltd., in a
move designed to enhance the competitiveness of
this business. NEC also reached a strategic
partnership agreement concerning integration of the
PC business with Lenovo Group Limited. Looking
back at the past year, however, NEC has yet to fully
address outstanding issues such as developing a
global business network. We must also speed up the
execution of business expansion measures, including
development of new products and services.
In fiscal 2011, our business performance fell far
short of our initial forecast, and we were thus
unable to achieve the targets as set in the plan.
As the president of NEC, I deeply regret that the
Company posted a net loss and has decided to
pay no dividend for fiscal 2011.
06
NEC Corporation
Annual Report 2011