01

Personal Solutions Business Growth Strategy
April 11, 2011 Personal Solutions Business Unit Senior Vice President Takemitsu Kunio
To be a leading global company leveraging the power of innovation to realize an information society friendly to humans and the earth NEC Group Vision 2017
The information society friendly to humans and the earth
Friendly to humans
- An information society that realizes a safe, secure, convenient and rich life with services anyone can use.
Friendly to earth
- An information society that enables co-existence with the global environment and sustainable growth by efficient use of limited resources.
NEC aims at the achievement of two information societies through the personal solution business.
Page 3 NEC Corporation 2011
1. Business outline 2. Current challenges and business policy 3. Key business strategy - Global expansion of the mobile phone business
- Starting up and expansion of tablet device business - Improvement of business operations
4. Toward achieving V2012
Page 4
NEC Corporation 2011
Business Organization
Provide the cloud devices interfacing person and things, and the services cooperated with the devices
Number of employees NEC Group:116,000 Business unit:9,500 (consolidated)
Segment
IT Service Platform Carrier Network Social Infrastructure
Personal Solutions
Others
Sales Business Unit International Sales Operations Business Unit
Carrier Network Business Unit
Social Infrastructure Solution Business Unit
IT Service Business Unit
NEC energy Devices
Platform Business Unit
Personal Solutions Business Unit
Organization
NEC TOKIN
Others
Page 5
Organization of Personal Solutions Business Unit

Feature phone/smartphone
NEC CASIO Mobile Communications NEC CASIO Mobile Communications

NEC Saitama
PC
*Transfer PC business from NEC (July 2011-)
NEC Personal Products NEC Personal Products
To be established in July: NEC Personal Computer* To be established in July: NEC Personal Computer*
(EDF5 AO" 4KMTS+N AE IUUIO 3 NRICE EIO6 0RIDN E ET S

Tablet device Personal Solutions Personal Solutions Planning Division Planning Division
. %#
Network Device (Home Gate Way)
NEC AccessTechnica NEC AccessTechnica

April-2011 newly established AprilISP/Cloud Service
Personal Solutions Personal Solutions Operations Unit Operations Unit
NEC BIGLOBE NEC BIGLOBE
Display/signage
*BU: Business Unit
NEC Display Solutions NEC Display Solutions
C&C Cloud and Personal Solutions business

Provide cloud devices by making use of NECs total solution offering from the cloud platform to network and application/service Realize the real-time C&C cloud services by providing the cloud devices interfacing person and things
Cloud platform
data data data data data
Various applications and services

For carrier For business For home & personal For public
Provide C&C cloud service through the cloud devices

realize an information society friendly to humans and the earth
Page 8
Market trend and NECs direction

Smartphone/Tablet device market; device area without restrictions of expression and mobility is growing, and connection between each device is accelerated NEC focuses on a growing Smartphone/Tablet device market in addition to existing PC/feature phone market
CY12 Global market shipments (forecast)
Smartphone Smartphone
Total 2,100 million Total 2,100 million

Feature phone 1,100 mil.
CAGR CY10-12:2%
Top three venders of non-Android devices own approximately 60% in FY2012
closed Open
Tablet device Tablet device 80mil. 80mil.

CAGR CY10-12:96% CAGR CY10-12:96%
Smartphone Smartphone 480mil. 480mil.

CAGR CY10-12:31% CAGR CY10-12:31%
Others Motorola SE HTC
NEC sets the Android market as a target, and aims to expand the global share
Others 80mil. iPad
Tablet device Tablet device
5%
7%
NOKIA
7%
30%
8% 10 %
480 mil.
Apple RIM
Samsung
15%
18 %
PC 400 mil.
CAGR CY10-12:16%
mobile
Page 9
Links between each device Links between each device is accelerated is accelerated
iPad holds a dominant share in the market in FY2012 NEC differentiates from other companies through creating a new service market by taking advantage of cloud service and the customized device
*Feature phone: Feature Phone + Basic Phone, Tablet device:5-10inch,touchpanel,runs on Android and Linux (Techno Systems Research) *Source: PC:IDC, Feature Phone and SmartPhone:SA(Jan,2011),Tablet device: Techno Systems Research
home
Performance of Personal Solutions business

FY2010 sales estimate of 780 billion yen, operating income to achieve break even
Operating profit margin 2.6
YoY
1.9
+12.5%
(Billions of Yen) 0.0

+5.7%
Main factors
Sales 780.0
Mobile Terminals Decrease due to sluggish sales in the feature phones despite launching smartphones in Japan ahead of schedule PC and Others Decrease due to changes in product mix caused by issues from PC chipset supply, a delay in new terminal projects to the next fiscal year, and decrease in display business for overseas
Sales 737.7
Mobile Terminals
830.0
+20.7%
780.0
+11.5% 3,150
341.0 282.5
315.0
+7.4% +2.2%
Operating Income 0.0

Decline due to sluggish sales of feature phones, etc
PC and Others
455.2 Operating
Income
489.0 465.0
18.9 FY10/03
16.0 FY11/3
(Previous forecasts)
0 FY11/3
(Revised forecasts)
Catch changes in the market and aim to increase sales and profits by providing devices with satisfying user experience
; Page 10 NEC Corporation 2011
Previous forecasts: as of January 27 2011. Revised forecasts: as of February 25,2011
Current position and challenges

Current challenges: seeking economies of scale, creating the added value by the Cloud devices and services, and achieving low cost operation
Market trend
Mobile Phone/PC
NEC business situation

Existing business
Current challenges
Saturated market growth of domestic mobile phone and PC Price decline of Mobile and PC Market shift to smartphone Use of ODM/EMS
Decline of the domestic mobile phone business Increase of the development cost Domestic PC share No.1 Collaboration with Lenovo on PC business
1. Seeking the economies of scale by global expansion 2. Creating the added value by the cloud device with the service 3. Achieving low cost operation adapted to the global market
Tablet
New business
Creation of the tablet device market Rise of the business model with service
Launch of the competitive smartphones Release of tablet devices Start the business discussion for tablet devices with services
Page 11
Mid-term Business Policy

Three core strategies: expansion of global businesses, development of new businesses and improvement of business operations
FY2012 (plan) Global Innovation Global Innovation 1. Global business expansion
Sales 900 bil.Yen Operating profit 20 bil.Yen
2. Development of new businesses

Present (FY2010 forecast)
Sales 780 bil.Yen Operating profit 0 bil.Yen
3. Improvement of business operations
Domestic Domestic
*Forecast as of 25 Feb. 2011 *Plan as of 11 Apr. 2011
Page 13
Global Mobile Market Data

Total Handset Market: solid demand ! North America & Europe: flat, APAC: increasing Smartphone market: strong demand ! Top three vendors own 60% share in the market
Global Handset Sales by Region M Unit 1800
1600 1400 1200 997 1000 800 600 400
Western Europe
Global Smartphone Sales by Region

Motorola
5% 30 %
1,354 1,150 1,1971,191
M180 Unit 0 1,749 1,715 1,662 Middle East 1,595 160 0 and Africa 1,501 HTC Central and
Eastern Europe Central and Latin America
38% 6% 4%
SE HTC
140 0 120 0 100 0 80 0 60 0 40 0
NOKIA
20% 14%
7%
NOKIA
Samsung
8% 10 % 15 % 18 %
RIM
Apple
Samsung
Apple
RIM
837
Asia Pacific
200
North America
0 200 200 200 200 200 201 201 201 201 201 201 5 6 7 8 9 0 1 2 3 4 5
17 0 20 5 8 1 0 14 0 4 1 2 6 0 2000620 00 921 1 01 3201 1 520 0 82000020 2201 420 72 12 5
22 8
34 9
47 8
55 2
61 6 3 4 6
Source SA Global Smartphone Sales Forecasts by Operating System and Region (Jan 2011) Global Handset Sales Forecast by Country: 2002 to 2015 (Dec 2010)
Direction of NEC mobile phone business

Penetration of Android OS is a big opportunity for business expansion, and NEC expands smartphone business to global by utilizing its strength
Past Past
NECs strategy External environment
Market
OS environment
Mobile Communication standard
Future Future
Market
OS environment
Mobile Communication standard
Domestic/Global: market were growing Original OS (closed) Domestic:3G/PDC Global: GSM (3G delay) Original chipset developed by HW vendor
Domestic/Global: smartphone market is growing Android OS (open) Domestic, Global: 3G/LTE Chipset vendors offer platforms
Chipset
Chipset
Domestic
Developed 3G phone mainly
Domestic
Supply smartphones by utilizing NECs strength Expand business to new operator by merger effect
Failed in overseas
Overseas
- product quality problem - Distribution management problem
Overseas
Supply smartphones by leveraging strength Expand business to north America and Europe operator
NECs strength
Thin and light product technology
Thin and light product technology

Toughness technology by merger effect with CHMC
*CHMC: Casio Hitachi Mobile Communications
Page 15
Expansion of smartphone business by taking advantage of NECs strength and merger effect with CHMC
Expand global business leveraging NECs own thin and light technology and toughness technology from CHMC
NECs Strength Thin and light technology

Based on feature phone business
Smartphone for NTT Docomo MEDIAS N-04C
Expand Channel by merger effect with CHMC
NTT Docomo NTT Docomo KDDI KDDI Softbank Mobile Softbank Mobile
Toughness technology
By merger effect with CHMC
(Waterproof, Dust-proofing, Toughness)
Verizon Wireless Verizon Wireless Other global carrier Other global carrier North America0 Europe North America0 Europe
Steps for global business expansion

First step (-FY2012) Second step (FY2012-)
Enter global market with competitive differentiated products (slimness, toughness, and waterproofed)
Operate good business in the global market with volume
CHMC Casio Hitachi Mobile Communications
Merger effect with Casio Hitachi Mobile Communications

Supply competitive products using strengths from merging companies NEC Thinness/ Lightness IT/NW solution PF technology NEC Saitama Manufacturing Tech
Shorten development period by Shorten development period by 6 months using toughness 6 months using toughness technology of Casio Hitachi technology of Casio Hitachi
N-03C (launching 2011.1) Toughness model for NTT Docomo
merging
Casio Hitachi Mobile Communications
N-04C(launching 2011.3) Smartphone for NTT Docomo
Waterproof/ Toughness Product supply to Verizon Wireless
Strength of consumer brand Relationship with overseas vendors
Achieved ahead of launching schedule by using common components

Smartphone for North America (available in 2011.4-6)
Common components Common components Common development process Common development process
Mobile Phone Business Sales Budget

FY 2010: Decrease in shipment volume because of delay in release of smartphones to the market FY 2012: Targeting total 12 million shipment volume by accelerating sales in the global market and shifting to smartphone business 12
[unit : mil] : Overseas Smartphone : Domestic Smartphone 5
Overseas
4.5 3.6
Domestic Overseas Domestic Domestic
excluding CHMC
F 2009 Y
Forecast
F 2010 Y
F 2012 P ed Y lann
*forecast as of 25 Feb. 2011 *Plan as of 11 Apr. 2011
For Global Success

$`
Global Success Factors Stronger & Competitive Product Line

Differentiation
HW Design0 UI0 Size0 Battery SW Own AP0 Own UI Unique Service
NEC s Strategy
Strength
mobility Thinness High-density mounting technology Waterproof Dust-proofing Toughness
Unique Design
Sophistication
safety
Superior Specification
Speed of developments following leading-edge technology Ability to gather information from vendors
Close Relationship with Vendors Development of global-selling models Leverage JDM and Offshore SW Business expansion from carrier market (US) to open market 0Enhance communication with
operators 0Deep analysis of users needs
$a
Cost Reduction
Common architecture in global level and customization for each region Effective ODM management Increase in sales volume
$b Localization and Visibility
Regional Marketing Operators Market: establish a close relationship Open Market: sales channel, SCM, promotion
Page 19
For Stronger & Competitive Product Lines $`

Standard platform $a Differentiation b Regionalization $
Close relationship with vendors

' ' O O G LE O O G LE
NECs strength
mobility Thinness High-density mounting technology
Customization
(ex.) Users needs: Thinness < Longlasting battery
Base technology Long-lasting battery
Sophistication
safety
1 U A LC O M M 1 U A LC O M M
Own cloud services Innovative information from vendors and get to Toughness market fast 0Win-win relationship Feedback with vendors by feedback of innovative 2 screens technology
0 Obtain updated
AR, Sensing technology

Differentiation
World thinnest model
Long-lasting battery model
Users needs: Thinness

World thinnest model
Waterproof Dust-proofing Toughness
LTE/TD-LTE version
Global-selling models
Customized models
Example of smartphone services

Offer value-added products which provide enjoyable user experience through health and photo services
Wellness service Total support for diet, exercise and sleep by customizable health navigator
Recognize current situation Initial diagnosis with psychological testing Self evaluation Keep score at choice Dedicated trainer Daily exercise Private chart Get titles and presents
Photo service
Real time and effective camera sensitive to changes in the users expression and movement 0getting location information
Identify faces & movement
For party use Taking family photographs
Location-based services
Page 21
Cost reduction
Customization of global models
Develop global models equipped with leading-edge technology and differentiated features Customize global models suitable to regional needs ! cost reduction by increasing in sales volume per product
Leveraging JDM*/Offshore SW
*JDM Joint Design Manufacturer
JDM JDM
Cost
Cost competitiveness at global level
In-house
Domestic-selling
JDM Global-selling
Global model
Customize Customize
Company A Company B Country C Country D
JDM management and quality control through making full use of PC and Display business experience
Offshore SW Offshore SW 0for noncompetitive technology
0World thinnest
0Cost reduction Customize
Page 22
Localization
Establish brand by starting with the carrier market, and target to the open market in order
Fiscal year 2011 Fiscal year 2012
Start approaching into North America (carrier channel) (Enhancement of Verizon wireless business, and expand more in US Supply slim, low price model
- Enhance local organization - cooperation with NEC international sales business and local subsidiaries
Enter into Europe (carrier channel) - For Europe carrier Investigate open market - Partnership with local distributors
Enhance ecosystem
Communication with operators Cooperation with international sales business, increase local staff, approach by collaboration with network vendors Vendor relation Station window for technology and local marketing in North America Local marketing (Deep analysis of users needs) Assign personnel for local marketing, hold global marketing conference
Page 24
Approach patterns to the tablet device market

There are four patterns to approach the tablet device market. Each approach pattern characterizes business models and device features.
$`
Service
Approach from new service Service venders ! Vertical integration model 0 B2B2C and B in B model 0 B2C model with own service
$a Approach from mobile

Mobile terminal venders ! B2 Carrier 2C model ! Cooperated with Smartphones
Fa rePoe e tu hn Tb t dv e a le e ic
b Approach from PCs $ PC venders ! B2C mass sales
mrt hn S a poe
0# ;NPoreCiogios PDeraNaNDc stb ig nee ollart vt ) n iv a (PPtvaaain DFigl horm PDa oF e it as
$c Approach from existing special devices

PND, DPF venders ! Adoption of Android to existing devices
Page 25
Market trend of the tablet device

Launched in North America, West Europe and China, and expected to expand to Central and South America and East Europe after 2013 Estimated production of 81 mil. Units in 2012 and 130 mil. Units in 2015
1 5 0
mil. unit
Global market trend of the tablet device

1 2 7 1 1 5 9 9
CAGR (CY10-15):41%
Others E. Europe C.& S America W. Europe N. America
1 0 0 8 1
5 8 5 0
2 1
China Japan
# 9
Page 26
20
1 0
20
1 1
2 01
2 0 1 3
2 0 1 4
20
1 5
Source NEC
Entering the tablet device business with NEC strength

Approach with the vertical integration
Approach to customers by One NEC with NECs strength of IT/NW technology, SI asset of IT service business and customized tablet devices with rich user experience Sales asset of 150 thousand NEC customers and 360 NEC sales partners
Stronger & Competitive hardware and differentiated technology

Leveraging thin and light technology of the smartphone
Service link between tablet device and smartphone

Rich user interface and NEC Biglobe service, etc.
Support to customers business use (in B) and their new consumer service (B2B2C) with customers service
NEC/NEC s sales partner
Customized Customized devices match to devices match to customers customers demands demands
Customer Cloud devices Service

NECs customer 150,000
Provide one stop
Cloud devices
Service platform
Provide Vertical Service platform Integration Service
End-user End-user
Network
B in B
Network
B2B2C
Tablet device Business policy

Strengthen competitive product line-ups
Rich product line-up to meet various markets, business models and applications
Establish business foundation to approach all business models

Differentiation by vertical integration model focusing on B2B2C and B in B model, in collaboration with NEC Sales/IT service business Expansion of the place and Quantity by B2 Carrier 2C, B2C model
Launch business in both domestic and global market by 2012, and expand mainly through global business from 2013
Cus tom ized
Target
Keep a balance between profitability and sales volume
co m pe ti t
Expand the added value vertical integration model
Added value
inB B2B2C
2. Expand business 2. Expand business model by partnership model by partnership
ive
1. competitive 1. competitive products products
For Carrier (B2Carrier2C) For mass market (B2C)

1mil. 10mil.
pr od uc ts
Thin and light technology by smartphone
Increase sales volume

Only one products Line-up all-purpose terminal 0.1mil.
Device sales volume
Page 28
Tablet device business - Strengthen competitive products Support various needs by enhancing the NECs unique Only One products and all-purpose products
Basic strategy / N LY N E /
Strategic plan
inch 2 display
Strengthen NECs unique products
Precede in B2B2C market by original solution Precede in B2B2C market by original solution utilizing the unique dual display devices utilizing the unique dual display devices Expand in B2 Carrier 2C, B2C and in global Expand in B2 Carrier 2C, B2C and in global market with the specialized applications and market with the specialized applications and services for the dual display devices services for the dual display devices Introduce Only One products in B2C market Introduce Only One products in B2C market featuring keyboard for an easy input featuring keyboard for an easy input Expand B in B market by strengthening the Expand B in B market by strengthening the security functions security functions Lineup of 7 to 10 inch devices as an all Lineup of 7 to 10 inch devices as an allpurpose tablet for the following market purpose tablet for the following market
Customized device for enterprise (B2B2C, in B) Customized device for enterprise (B2B2C, in B) For carrier and B2C For carrier and B2C For low price devices with limited purposes For low price devices with limited purposes
inch keyboard
All-purpose
Widen lineups for various market
Page 29
7 to 10 inch 1 display 7 inch 1 display For ' /, 4 %
Tablet device business - Expansion of the domestic business with NECs assets Win the market for vertical integration business with new devices and services by One NEC Expand sales by introducing products to B2 carrier 2C and B2C, and offer these products to other business models
Business model Business Strategy
0Differentiate by the vertical integration model of new device + new service cooperated with service platform 0Enter the market from trial phase and expand business through commercial service and wide applications
NECs assets
0Various know-how of IT service and 150 thousand customers 0ITS related assets
B2B2C
In B
0Vertical integration model with NECs enterprise solutions 0Acquire new customers with a new set of functions
Enterprise N/W know-how in IT service and PF business
B2 Carrier 2C
0Launch products complied with the carrier requirement 0Expand to multiple carriers by preparing common communication modules
Domestic and overseas customer assets in carrier network business
B2C
Page 30
0Use channels for mass sales in NEC Personal Products
Mass sales know-how and distribution channels in NEC Personal Products
Tablet device business - Global business expansion with partners Establish business foundation by 2012, corresponding to wide spread and extensive growth in the W/W market from 2013
Approach to NECs wide range of customers Collaborate with in-house overseas businesses Select suitable business models with partners in each area
0Carrier model 0Carrier model (Carrier Cloud) (Carrier Cloud) 0Enterprise model 0Enterprise model 0Cooperate with local 0Cooperate with local venders venders 0Carrier model with 0Carrier model with smartphones smartphones 0Enterprise model with 0Enterprise model with selected partners selected partners
Europe
China
Global Global development site development site in Taiwan in Taiwan
N. America
Select partners in Select partners in targeted countries and targeted countries and areas areas
APAC
Central & South America
Japan
NECs Asset
Domestic customers ,
Carrier customers More than
Global
Enterprise N/W customers , JOC customers
(IT service)
Page 31
Service, Application and eco-system

Reinforce software line-ups for services and develop strong components
Develop applications with NEC software development subsidiaries Gain good partners by providing development environment (Application partner program) Collaborate with NEC Biglobe Andronavi
Application development by NEC SW subsidiaries Five typical application groups Home service
NEC System Technologies Energy Management Control home electronics Home security
Application partner program

Application partner
0Provide tablet basic Provide tablet basic specifications, APIs and specifications, APIs and SDKs to support SDKs to support development development 0Share revenues 0Share revenues
! co. " co. # co.

Develop APPs
co.
Communication
NEC Communication Systems TV telephony Mailer/PIM
Application catalog
Medical Home
Entertainment NEC Software

Tohoku
Distri Learning -bution

House
Content sales/Recommend Shop/Goods information
. %#
ANDR NAVI O
Health Enter e-books -care -tainment
E-shop
NEC Soft Net shopping/Coupon Mail order catalog
Newspaper, Books NEC Software
Select shop Select shop

Select optimized APPs
Hokkaido E-books/e-newspaper Online learning service
A co.
API: Application Program Interface SDK: Software Development Kit
B co.
C co.
Examples of service for Tablet devices

Application distribution services to enterprises, collaborating with IT service/NEC Biglobe distribution platforms and andronavi services
EX.) Cooperation between tablet devices and APPs distribution platform
NEC IT service business/NEC Biglobe
Apps/content Distribution PF

Current challenges facing usage of android applications
Personal solutions Operations Unit . %# SW subsidiaries Apps partner Use of
Medical
Home
Distri -bution Learning
Apps/content Distribution PF
Health -care
0&
Enter e-books -tainment
Extensive number of Extensive number of applications in market, and applications in market, and still increasing still increasing Low quality applications from Low quality applications from permissive screening permissive screening
Users are dissatisfied, not able to find good applications in the market
House
Select optimized APPs

ANDRONAVI ANDRONAVII ANDRONAVII AND R NAVI O ANDR NAV ANDR NAV O O FOR! ! FOR FOR" " FOR# # FOR FOR End user
Enhance usage of Android tablets through services to omit application search

For A co. For B co. For C co.
Page 33
Tablet device business shipping plan

Over 1 million units cumulative by FY2012 Business expansion focusing on overseas from FY2013 Expect more sales with strong market growth
Business status Approximately 200 cases focusing on five areas
Market
e-books /Newspaper Learning Electric Power/Houses Distribution /Retail Life support
Industry
Publishing/Printing/Book store/Carrier Learning, Coaching school, school Power, energy/houses, housing Mail order/Department store/Supermarket Medical/Health/Selfgoverning/CATV
Proposed solutions and services

E-books/Newspaper service On-line education HEMS/Home electronics ON/OFF/Home security etc. Net-shopping/Coupon/Catalog Photo frame/Care/Healthcare/Remote medical care
Business expansion focusing on overseas
Overseas Domestic
FY2010 Forecast
FY2011 Planned
FY2012 Planned
*Plan as of 11 Apr. 2011
Page 35
NECs effort to production innovation and strength

Putting NEC groups production innovation activities into practice at NEC Saitama and NEC AccessTechnica
0 Excellent quality acceptable in the world

0Create customers impression by the manufacturing oriented quality improvement activity
Quality
Reinforcement of manufacturing
Speed
0Daily production for wide range of
products 0Flexibility to market fluctuations
Technology 0Credibility evaluation technology

Keying 0 Dropping Intensity Opening/ Pressing Closing
Strength
0
Efficiency
Production line innovation
Permanence
Production Engineering
Joint process Kanban system, logistics 0 Frame Swaging Adhesive calcification Screen Printers, dryers Boring
Automation
Efficiency improvement activity

Seminars
Problem Finding Improvement
Adhesive application, pasting
Factory tours by executives on regular basis
Leverage NECs Manufacturing Technology for expansion to JDM

Success case by use of JDM/EMS Global Organization in NEC Display Solutions

Complete out-out system as Fabless, and supply chain management and quality as own plant Connect global sales subsidiaries in real time, operate fast local management
EMEA Sales .. %# # $ $ 3 %UR PE % 3 % R PE U O O
Global share
Projector Public Display
NA
Sales
Development Production Japan China China .. % # # $ $ 3 % 3

.. 6 4 3 6 4 3 Production control company company
.. %# # $ $ 3 ! ! M ERIICA % 3 M ERCA
Or N te A hs E C DCB
% %
Others C B NEC 23% A
Production control/SCM achieved by / UT-/ UT system and IT

Production engineering/Quality control personnel at JDM/EMS Mutual links between the global sales information and EMS production/shipping information % Human resource development % Human resource development Recruit local resources actively Recruit local resources actively Personnel rotation of overseas Personnel rotation of overseas representatives representatives

9%
APAC/LA
Sales
Market oriented marketing/product planning/sales Market oriented marketing/product planning/sales
Global business expansion in the specific market such as Global business expansion in the specific market such as education, transportation and medical care education, transportation and medical care Product planning reflecting local needs and partnering with Product planning reflecting local needs and partnering with local channel local channel

Sharing know-how by making use of JDM/EMS

*NECDS NEC Display Solutions / NVTS NEC Viewtechnology Trading Shenzhen
Page 38
Toward achieving V2012

Achieve V2012 by three core strategies of Expansion of the global business, Development of the new business and Improvement of business operations
FY2012 targets are Sales: 900 billion Yen, Overseas ratio: 22%, OP margin: 2%
900.0
Sales
bill. Yen Mobile Terminals
7 3 7 .7
7 80 .0
Overseas Ratio 22%
Overseas 200.0
28 2 .5
3 15 .0
PC and Others
Operating 45 5 .2 Income
Domestic 700.0
4 65 .0
0
18.9
excluding CHMC
20.0
FY2012 Plan
*Plan as of 11 Apr. 2011
FY20 09
FY20 10 Forecast
*Forecast as of 25 Feb. 2011
*CHMC: Casio Hitachi Mobile Communications
Establishment of Personal Solutions Operations Unit

NECs Personal Solutions Operations Unit established in April 1, 2011, as a control tower for collaboration between other business units (BU) and global business promotion
Product planning, development and sale for cloud devices Promote collaboration in BU (cooperation with other BU, common technology) Enhance global business in BU
. %# Personal Solutions Control/promote Operations Unit Other # OOER T P A ion BU

Cloud Device Android Tech center Display Projector Business PC
Personal Solutions BU
NEC CASIO Mobile Communications NEC Personal Products NEC AccessTechnica NEC BIGLOBE NEC Display Solutions
Collaboration Global Business
Page 40
Business Efforts to Android in NEC

Development organization for Android established in 2009
Centralization of related Centralization of related information within NEC information within NEC Strengthening cooperation with Strengthening cooperation with Google through single window Google through single window
Establishment of Android Technical Center in Personal Solutions BU in Oct. 2009
Provide both Android and Windows in response to customers needs

Android Provide to customers with less need to high security levels and strong need to easy cloud devices with high usability and flexibility *Security pack to be offered soon Windows Provide to customers with strong need to high security levels and connection to the existing mission critical systems
Page 41
Collaboration with Lenovo Update

Investigation of the expansion for the global business of Business PC
Business scheme to provide JOC via Personal Solutions Operations Unit for global expansion is being investigated.
Consumer Consumer
Domestic company Domestic company
JOC (Domestic + Overseas) JOC (Domestic + Overseas)

Business expansion through the collaboration with Lenovo
NEC NEC
Mass sales Mass sales
Sales Unit Sales Unit
Personal Solutions Operations Unit Personal Solutions Operations Unit Business PC Division Business PC Division
% 20,000+ Overseas Affiliated Companies % 20,000+ Overseas Affiliated Companies
North America: 3,500 North America: 3,500
NEC brand PC
NEC Personal Computer NEC Personal Computer To be established in July
Latin America: 900 Latin America: 900 Europe and Middle East 3,700 Europe and Middle East 3,700 Asia Pacific: 8,600 Asia Pacific: 8,600 China: 5,100 China: 5,100 Africa: 200 Africa: 200
Products
Smartphone
World thinnest 7.7mm & Super light Smartphone
Life Touch Series

Portable size and kind operability, Convenient to the various scene in life
- % $ ) ! 3 .
#
Life Touch-S
LifeTouch Series
Life Touch-NOTE Life Touch-W
PC
All-in one PC with full HD Advanced 3D and AV function, Note PC with wireless TV
VALUESTAR W VM970/DS LaVie M LM570/DS
Mobile WiMAX Router

Change your broadband style
Mobile WiMAX Router

AtermWM3500R
Mate TYPE MG
VersaPro TYPE VD
19 inch wide display all-in-one PC & full HD Note PC with the advanced eco technology such as human detect sensor
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CAUTIONARY STATEMENTS: This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safeharbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking statements, which reflect NECs analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NECs markets, (ii) fluctuating demand for, and competitive pricing pressure on, NECs products and services, (iii) NECs ability to continue to win acceptance of NECs products and services in highly competitive markets, (iv) NECs ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NECs business and operations, (vi) NECs ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (iv) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise. The management targets included in this material are not projections, and do not represent managements current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NECs business strategies. Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the applicable securities laws is not granted.

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Personal Solutions Business Growth Strategy

The information society friendly to humans and the earth

4. Toward achieving V2012

NEC Corporation 2011

Sales Business Unit International Sales Operations Business Unit

Carrier Network Business Unit

Social Infrastructure Solution Business Unit

IT Service Business Unit

NEC energy Devices

Platform Business Unit

Personal Solutions Business Unit

NEC Corporation 2011

Organization of Personal Solutions Business Unit

NEC CASIO Mobile Communications NEC CASIO Mobile Communications

*Transfer PC business from NEC (July 2011-)

NEC Personal Products NEC Personal Products

(EDF5 AO" 4KMTS+N AE IUUIO 3 NRICE EIO6 0RIDN E ET S

NEC AccessTechnica NEC AccessTechnica

Personal Solutions Personal Solutions Operations Unit Operations Unit

NEC BIGLOBE NEC BIGLOBE

NEC Display Solutions NEC Display Solutions

C&C Cloud and Personal Solutions business

Various applications and services

Provide C&C cloud service through the cloud devices

4. Toward achieving V2012

NEC Corporation 2011

Market trend and NECs direction

Total 2,100 million Total 2,100 million

Top three venders of non-Android devices own approximately 60% in FY2012

Tablet device Tablet device 80mil. 80mil.

Smartphone Smartphone 480mil. 480mil.

Others 80mil. iPad

Tablet device Tablet device

Performance of Personal Solutions business

(Billions of Yen) 0.0

Operating Income 0.0

; Page 10 NEC Corporation 2011

Previous forecasts: as of January 27 2011. Revised forecasts: as of February 25,2011

Current position and challenges

NEC business situation

NEC Corporation 2011

Mid-term Business Policy

Sales 900 bil.Yen Operating profit 20 bil.Yen

2. Development of new businesses

3. Improvement of business operations

*Forecast as of 25 Feb. 2011 *Plan as of 11 Apr. 2011

4. Toward achieving V2012

NEC Corporation 2011

Global Mobile Market Data

Global Smartphone Sales by Region

1,354 1,150 1,1971,191

140 0 120 0 100 0 80 0 60 0 40 0

17 0 20 5 8 1 0 14 0 4 1 2 6 0 2000620 00 921 1 01 3201 1 520 0 82000020 2201 420 72 12 5

Direction of NEC mobile phone business

Developed 3G phone mainly

- product quality problem - Distribution management problem

Thin and light product technology

Thin and light product technology

NEC Corporation 2011

NECs Strength Thin and light technology

Smartphone for NTT Docomo MEDIAS N-04C

Expand Channel by merger effect with CHMC

Forecast as of 25 Feb. 2011 Plan as of 11 Apr. 2011