NEC : Presentation（1,061KB）

Global Business

September 16, 2021

Akihiko Kumagai, Senior Executive Vice President

©NEC Corporation 2021

FY2018-FY2021 Results & Outlook

• Plan to grow DG/DF* by +30% CAGR and other businesses by +5% (excl. Display / Energy Business)
• Improved profitability through portfolio changes. Achieved positive profit in FY2020
• • DG/DF: Digital Government/Digital Finance

2% 5%

-1%

Adjusted Op Profit -5%

Global Business Total

[CAGR +4%]

Revenue

493.1

450.0 460.0

409.1

Display/Energy

[CAGR ▲57%]

(Billions of Yen)

FY2018	FY2019	FY2020	FY2021
			(Planned)

DG/DF

[CAGR+30%]

Other Businesses

[CAGR+5%]

・Service Provider Solution

・Wireless Solution

・Submarine Network, etc.

3 ©NEC Corporation 2021

FY2020 Results

Display business profit fell sharply due to Covid-19 and increased competition. Surplus

achieved through SGA reduction and improved profitability in Service Provider Solution and

Submarine Network business

Revenue

(YoY)

			+0.9	Avaloq	▲3.0		(Billions of Yen)
				consolidation
				One-time Costs
			Display Business
							FY20
				Business Profitability		Adjusted
	FY19	+9.8		OP
		Improvement			7.5
	One-time	▲6.0
	・ OSS/BSS*:
	Costs	+9.0
	Increase in GP margin
				・ Submarine Network:
				Increase in revenue
	FY19			・ SGA reduction
					[450.0] (▲9%)
	Adjusted
	OP
	-3.2
			＊OSS/BSS: Operation Support System/Business Support System)
[493.1]

4 ©NEC Corporation 2021

FY2020 Summary

Completed business portfolio changes, built strong foundation to achieve

Profitable Growth

Key

Achievements

Challenges

• Investment in Growth Business

・Acquisition of Avaloq and completion of PMI 100-day plan

・Expansion of submarine cable production capacity

・Software development for OSS/BSS cloud

• Improved profitability

・Sale of Display business and wind down of Energy business

・Reduction of SGA across all businesses and regions

⇒ Achieved positive profit in a tough Covid-19 environment

• DG/DF: Maximization of synergies (acceleration of global expansion)
• Submarine NW: Strengthen business operation capability (implement several large-scaleprojects simultaneously)
• Wireless: Break away from volume-dependent profitability model

5 ©NEC Corporation 2021