NEC 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 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.

Page out of 92

  • 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

Annual Report 2012
Year ended March 31, 2012

Table of contents

  • Page 1
    Annual Report 2012 Year ended March 31, 2012

  • Page 2
    ...NEC GROUP VISION 2017 Better Products, Better Services Daily work NEC Group Core Values (What we value and base our behavior on) Fiscal year management strategy Mid-term growth plan NEC Group Code of Conduct (Corporate ethics and compliance) To be a leading global company leveraging the power...

  • Page 3
    ...Network business, Social Infrastructure business and Energy business. Our overriding goal is to enhance corporate value. We would appreciate your continued support and understanding as we work to reach our goals. June 2012 Nobuhiro Endo President, NEC Corporation NEC Corporation Annual Report 2012...

  • Page 4
    ....0 2008 2009 2010 2011 2012 0 2008 2009 2010 2011 2012 (At year-end) Net sales Percentage of overseas sales to consolidated net sales Operating income (loss) Operating income ratio Net income (loss) Net income ratio Owner's equity Owner's equity ratio 03 NEC Corporation Annual Report 2012

  • Page 5
    ...end) 0 2008 2009 2010 2011 2012 0 2008 2009 2010 2011 2012 -200.0 2008 2009 2010 2011 2012 Interest-bearing debt Debt-equity ratio R&D expenses R&D expenses ratio Cash flows from operating activities Cash flows from investing activities Free cash flows NEC Corporation Annual Report 2012 04

  • Page 6
    ... NEC Group Vision 2017, NEC aims "to be a leading global company leveraging the power of innovation to realize an information society friendly to humans and the earth." In February 2010, the NEC Group set its medium-term policy of realizing the NEC Group Vision 2017 through customer-driven solutions...

  • Page 7
    ... Data Center *1 M2M stands for "Machine to Machine." By exchanging data among network-connected machines, such as sensors, automobiles, vending machines, home electric appliances, M2M technology is designed to gather information and control various equipment. NEC Corporation Annual Report 2012...

  • Page 8
    ... with Convergys Corporation of the U.S. on the acquisition of its business support systems (BSS) operations for telecom carriers. The purpose of this acquisition is to enhance NEC's services for telecom carriers, primarily those overseas. BSS operations provide billing management, customer support...

  • Page 9
    ... Project" management technologies for mobile phone base stations in â- Basic research to realize â- Feasibility study of smart â- Participated in smart city community for overseas green township in India development in Brazil market in Indonesia Malaysia NEC Corporation Annual Report 2012 08

  • Page 10
    ...In the platform business, NEC will promote alliances and collaboration with other companies particularly in the fields of hardware including servers, with the aim of establishing a globally competitive business, while streamlining the NEC Group's development and production operations. As a result of...

  • Page 11
    ... to customers. For example, NEC plans to embed into POS systems a compact sensor that can estimate the age and gender of customers using its world-acclaimed face recognition technology. CRM services Coupons Stamp cards Advertisements Incentive point cards NEC Corporation Annual Report 2012 10

  • Page 12
    ..., NEC is working to increase sales of Aiming for Global Expansion of the Services and Management Field In the Carrier Network business, NEC will continue to concentrate business resources in four areas: wireless broadband access, mobile backhaul, submarine cable systems, and services and management...

  • Page 13
    ... system (BSS) operations acquired from Convergys Corporation of the U.S. in order to enhance service operations for overseas telecom carriers. In addition to these measures, NEC plans to increase upfront investment in future growth, in such areas as nextgeneration operational support systems (OSS...

  • Page 14
    ...bolster business development capabilities and speed up business expansion. In July 2012, NEC began shipping a cloud-based small-scale energy storage system that is remotely supported 24/7, 365-days a year. Through these and other products, NEC will strive to create products and services that further...

  • Page 15
    ... in developed countries centered on Europe. In Japan, market conditions are projected to recover gradually, primarily due to demand related to the recovery from the Great East Japan Earthquake. However, the prevailing foreign exchange rate levels are highly likely to persist for some time. In light...

  • Page 16
    ... (Mobile Phone Base Stations), Mobile Backhaul ("PASOLINK"), Broadband Access (FTTx)  Services & Management Network Operation Support Systems (OSS)/Business Support Systems (BSS), Network Control Platform Systems, Network Service Delivery Platform Systems MAJOR CONSOLIDATED SUBSIDIARIES NEC Soft...

  • Page 17
    ... Management Systems EV/PHV Charging Infrastructure Solutions for Utilities  Lighting Equipment MAJOR CONSOLIDATED SUBSIDIARIES NEC Engineering, Ltd. NEC TOSHIBA Space Systems, Ltd. NEC Network and Sensor Systems, Ltd. Nippon Avionics Co., Ltd. MAJOR CONSOLIDATED SUBSIDIARIES NEC CASIO Mobile...

  • Page 18
    ...at Interop Las Vegas 2012. In other areas, NEC has received many accolades from customers for its platform products supporting cloud computing. For example, NEC's PC server "Express5800 series" achieved the No. 1 share*1 in the Japanese market for the 16th consecutive year. NEC's core cloud platform...

  • Page 19
    ...stronger collaboration in integrated operation and management of systems with Oracle Corporation Japan. Eyeing expansion of global business, NEC aims to provide support to Japanese companies seeking to enter overseas markets as their strategic partner, with emphasis on companies in the manufacturing...

  • Page 20
    ...2012. The services and management business expects to see market expansion surpass growth in capital expenditures in network infrastructure equipment. In this business, NEC launched M2M solutions "CONNEXIVE," in addition to acquisition of the business support system division of Convergys Corporation...

  • Page 21
    ...business will be to address growing AIMS OF ACQUIRING CONVERGYS CORPORATION'S BSS OPERATIONS OSS Acquired in 2008 Acquired in 2012 BSS Business BSS Meeting customer needs with Integration Power Hold strong OSS products Globally expanding customer-based business High customer satisfaction through...

  • Page 22
    ... TV Asahi Corporation, TV TOKYO Corporation, and Fuji Television Network, Inc. These digital terrestrial TV transmitters, which reduce power consumption by more than 40% compared with conventional models, have been SALES (Billion ¥) 400.0 318.8 330.4 installed on "TOKYO SKYTREE®"*2. Overseas, NEC...

  • Page 23
    ..." asteroid explorer. Leveraging this strength, NEC will develop compact Earth observation satellites with a low cost and short delivery time utilizing the NEXTAR small standard satellite bus module system*3. NEC plans to market this satellite to emerging countries primarily in Asia, where there...

  • Page 24
    ... in the mobile phone business on the shift to smartphones and global business expansion. In Japan, NEC put a smartphone supply structure in place for Japan's three major telecom carriers by launching "MEDIAS"*1 brand smartphones for KDDI Corporation and SOFTBANK MOBILE Corp., following a launch...

  • Page 25
    ... in mobile phone sales volume, due to a lack of competitiveness in smartphones and delays in developing business globally. In response, NEC will implement far-reaching structural reforms aimed at restoring sound operations. In tablet devices, NEC must accelerate efforts to open up new markets. Going...

  • Page 26
    ... dialog with customers and markets worldwide and create new businesses. In other areas, NEC will accelerate "Global Open Innovation" through stronger partnerships with overseas universities and companies and by promoting R&D activities closely tied to local markets mainly in emerging countries. The...

  • Page 27
    ...Narrow Mobile carrier network Exclusive use Broad Narrow WiFi Mobile carrier network Internet Broad WiFi OpenFlow Switch function Payment Movie SNS Mobile terminal Payment Movie Mobile terminal SNS Select and switch mobile networks by each application NEC Corporation Annual Report 2012 26

  • Page 28
    ... Extract useful insight and laws from big stored data Insights and laws High-speed processing of big stored data Store Big stored data Big data processing platform Sensors, terminals, IT systems (mobile phones, POS systems, automobiles, cameras, etc.) 27 NEC Corporation Annual Report 2012

  • Page 29
    ... supports training of guide dogs, the NEC Galileo Club, which offers hands-on science classes for children, and the NEC IT Workshop for Mothers. *1 Fukkouichi ("Recovery Market") is an event designed to have shopkeepers from Minamisanriku Town's shopping street and other town residents join forces...

  • Page 30
    .... January 2006 Professor, Keio University Graduate School of Media and Governance (to present) June 2007 Member of the Board, NEC Corporation (to present) Takeshi Kunibe*1 Member of the Board President and Chief Executive Officer, Sumitomo Mitsui Banking Corporation "SMBC" June October June April...

  • Page 31
    ... 1974 2007 2009 2010 Joined NEC Corporation Associate Senior Vice President Senior Vice President Senior Vice President and Member of the Board 2011 Executive Vice President and Member of the Board 2012 Executive Vice President, CMO (Chief Marketing Officer) and Member of the Board Isamu Kawashima...

  • Page 32
    ...as illustrated in the chart below. NEC has introduced a corporate officer system to separate management supervision from business execution and implement business operations based on prompt decision-making. This has involved transferring substantial authority for business execution from the Board of...

  • Page 33
    ... discussions within the Board of Corporate Auditors. Bonuses to directors are calculated based on key indicators (net sales, operating income, etc.) of the NEC Group's consolidated business performance for the previous fiscal year. In order to ensure the objectiveness and properness of remuneration...

  • Page 34
    ... and other events, both in Japanese and English, and enhancing investor relations activities on a global scale, including visiting overseas institutional investors. Disclosure to individual investors includes presentations and a website for these investors. http://www.nec.com/en/global/ir/corporate...

  • Page 35
    ... STATEMENTS OF CHANGES IN NET ASSETS 51 CONSOLIDATED STATEMENTS OF CASH FLOWS 53 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 87 INDEPENDENT AUDITOR'S REPORT Note: U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥82 = U.S.$1. NEC Corporation Annual Report 2012 34

  • Page 36
    35 NEC Corporation Annual Report 2012

  • Page 37
    NEC Corporation Annual Report 2012 36

  • Page 38
    37 NEC Corporation Annual Report 2012

  • Page 39
    NEC Corporation Annual Report 2012 38

  • Page 40
    39 NEC Corporation Annual Report 2012

  • Page 41
    NEC Corporation Annual Report 2012 40

  • Page 42
    41 NEC Corporation Annual Report 2012

  • Page 43
    NEC Corporation Annual Report 2012 42

  • Page 44
    43 NEC Corporation Annual Report 2012

  • Page 45
    NEC Corporation Annual Report 2012 44

  • Page 46
    45 NEC Corporation Annual Report 2012

  • Page 47
    NEC Corporation Annual Report 2012 46

  • Page 48
    47 NEC Corporation Annual Report 2012

  • Page 49
    NEC Corporation Annual Report 2012 48

  • Page 50
    49 NEC Corporation Annual Report 2012

  • Page 51
    NEC Corporation Annual Report 2012 50

  • Page 52
    51 NEC Corporation Annual Report 2012

  • Page 53
    NEC Corporation Annual Report 2012 52

  • Page 54
    53 NEC Corporation Annual Report 2012

  • Page 55
    NEC Corporation Annual Report 2012 54

  • Page 56
    55 NEC Corporation Annual Report 2012

  • Page 57
    NEC Corporation Annual Report 2012 56

  • Page 58
    57 NEC Corporation Annual Report 2012

  • Page 59
    NEC Corporation Annual Report 2012 58

  • Page 60
    59 NEC Corporation Annual Report 2012

  • Page 61
    NEC Corporation Annual Report 2012 60

  • Page 62
    61 NEC Corporation Annual Report 2012

  • Page 63
    NEC Corporation Annual Report 2012 62

  • Page 64
    63 NEC Corporation Annual Report 2012

  • Page 65
    NEC Corporation Annual Report 2012 64

  • Page 66
    65 NEC Corporation Annual Report 2012

  • Page 67
    NEC Corporation Annual Report 2012 66

  • Page 68
    67 NEC Corporation Annual Report 2012

  • Page 69
    NEC Corporation Annual Report 2012 68

  • Page 70
    69 NEC Corporation Annual Report 2012

  • Page 71
    NEC Corporation Annual Report 2012 70

  • Page 72
    71 NEC Corporation Annual Report 2012

  • Page 73
    NEC Corporation Annual Report 2012 72

  • Page 74
    73 NEC Corporation Annual Report 2012

  • Page 75
    NEC Corporation Annual Report 2012 74

  • Page 76
    75 NEC Corporation Annual Report 2012

  • Page 77
    NEC Corporation Annual Report 2012 76

  • Page 78
    77 NEC Corporation Annual Report 2012

  • Page 79
    NEC Corporation Annual Report 2012 78

  • Page 80
    79 NEC Corporation Annual Report 2012

  • Page 81
    NEC Corporation Annual Report 2012 80

  • Page 82
    81 NEC Corporation Annual Report 2012

  • Page 83
    NEC Corporation Annual Report 2012 82

  • Page 84
    83 NEC Corporation Annual Report 2012

  • Page 85
    NEC Corporation Annual Report 2012 84

  • Page 86
    85 NEC Corporation Annual Report 2012

  • Page 87
    NEC Corporation Annual Report 2012 86

  • Page 88
    87 NEC Corporation Annual Report 2012

  • Page 89
    ... on closing value on the Tokyo Stock Exchange, Stock Code: 6701) Stock Price (Yen) 2008 2009 2010 2011 2012 Year's high Year's low 670 376 ... 605 218 ... 397 210 ... 312 162 ... 190 147 (On a quarterly basis for the years ended March 31) NEC Corporation Annual Report 2012 88

  • Page 90
    ... (IT Services, Platform) Carrier Network Business Social Infrastructure Business Personal Solutions Business 109,102 (NEC Corporation and consolidated subsidiaries) (As of March 31, 2012) Number of Employees Organization Chart Sales Business Unit International Sales and Operations Business Unit...

  • Page 91
    .../global/ir Posted on the NEC Investor Relations (IR) website are presentation materials and other documents, NEC's financial position and business results, stock and bond information, and much more. NEC constantly strives to enhance the disclosure on this website. CAUTIONARY STATEMENTS: This annual...

  • Page 92
    7-1, Shiba 5-chome, Minato-ku, Tokyo 108-8001, Japan Telephone: +81-3-3454-1111 NEC home page: http://www.nec.com ISSN 0910-0229 ©NEC Corporation 2012 Printed in Japan