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Isamu Kawashima
Executive Vice President, CFO (Chief Financial Officer) and
Member of the Board
The NEC Group recorded consolidated net sales of ¥2,935.5 billion
for fiscal 2015, a decrease of ¥107.6 billion or 3.5% year on year.
While the Public business saw an increase in sales, there was a
decrease in the System Platform business. Also, sales of Others
declined due to deconsolidation of the Internet service business
and mobile phone sales business. Regarding profitability,
consolidated operating income improved by ¥21.9 billion year on
year, to ¥128.1 billion, mainly due to increased sales in the Public
business and improved mobile phone business.
NEC intends to adopt a policy that best responds to the rapidly
changing business environment. Thus, the Company considers,
among other factors, the following in determining its cash
dividends: the profits earned in the relevant fiscal year; the financial
outlook for the following fiscal year, the dividend payout ratio, and
the internal demand for funds such as capital expenditures. NEC
Total assets were ¥2,620.7 billion as of March 31, 2015, an increase of
¥115.3 billion compared with the end of the previous fiscal year. Current
assets as of March 31, 2015 increased by ¥73.9 billion compared with
Consolidated net income was ¥57.3 billion, a year-on-year
improvement of ¥23.6 billion. Despite a decrease in subsidiaries and
affiliates’ stock, there was improvement in operating income as well
as in non-operating income including equity in earnings of affiliates
and foreign exchange gain. In addition, there were minority interests
in income from making NEC Fielding, Ltd. a wholly-owned subsidiary.
As a result, return on equity (ROE) was 7.5%, a 2.7 percentage point
improvement from the previous fiscal year.
attained the target for operating income and net income, and a
dividend of ¥4 per share was issued as promised at the beginning
of the period. For the fiscal year ending March 31, 2016, NEC plans
for an annual dividend of ¥6 per share of common stock while no
interim dividend will be paid.
the end of the previous fiscal year to ¥1,576.8 billion, mainly due to an
increase in accounts receivable-trade.
Fiscal 2015 Performance
Dividends and Returns to Shareholders
Fiscal 2015 Financial State
(Billion ¥)
FY2014/3 FY2015/3
Results Initial plan Results
Net sales 3,043.1 3,000.0 2,935.5
Overseas sales 569.2 586.8
Overseas sales ratio 18.7% 20.0%
Operating income 106.2 120.0 128.1
Operating income ratio 3.5% 4.0% 4.4%
Net income 33.7 35.0 57.3
Return on equity (ROE) 4.8% 7.5%
Message from the CFO
11 NEC Corporation
Annual Report 2015