[C&C for Human Potential / NEC Corporation]



Contact:                                                        May 22, 1997
Ken Fukuchi, Chris Shimizu, Aston Bridgman
Public Relations Division
TEL: 81-3-3798-6511
FAX: 81-3-3457-7249

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF NEC CORPORATION
FOR THE FISCAL 1997 ENDED MARCH 31, 1997

Fiscal 1998:April 1, 1997 - March 31, 1998
Fiscal 1997:April 1, 1996 - March 31, 1997
Fiscal 1996:April 1, 1995 - March 31, 1996


I. OPERATING RESULTS AND RELATED DATA FOR FISCAL 1997



(Millions of yen, millions of U.S. dollars,
except per share figures)
Fiscal 1997

Fiscal 1996

% change
1997/1996

Fiscal 1997

Net sales (A) YEN4,948,437 YEN4,397,192 +12.5 $39,907
Operating income 183,781 247,802 -25.8 1,482
Income before income taxes (B) 121,222 151,318 -19.9 978
Net income (C) 91,581 77,166 +18.7 739
Net income per share (in yen) 51.78 45.21 +14.5 0.42
Total assets (D) 4,799,165 4,683,120 +2.5 38,703
Shareholders' equity (E) 1,003,371 878,852 +14.2 8,092

  1. The consolidated financial statements of NEC Corporation and its subsidiaries are prepared in conformity with the accounting principles generally accepted in the United States of America.
    NEC Corporation does not adopt the provisions of Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity Securities".
    If SFAS No. 115 was implemented, the balance of shareholders' equity as of March 31, 1997 and March 31, 1996 would have increased by 102,345 million yen (US$ 825 million) and 176,439 million yen (US$ 1,423 million), respectively.
  2. Number of consolidated subsidiaries : 128
    Number of affiliated companies accounted for by equity method: 16
  3. US dollar amounts are translated from yen, for convenience only, at the rate of US $1= 124 yen.
  4. Computation of net income per share is based on the average number of shares of common stock outstanding during each year, with consideration of the dilutive effect of common stock equivalents.
Fiscal 1997 Fiscal 1996
Return on equity (C)/(E) 9.7% 9.2%
Return on assets (B)/(D) 2.6% 3.4%
Return on sales (B)/(A) 2.4% 3.4%
Ratio of shareholders' equity (E)/(D) 20.9% 18.8%
Shareholders' equity
per share of common stock (in yen)

640.87

568.40



II. FORECAST OF OPERATING RESULTS FOR FISCAL 1998


Yen(Millions) US$(Millions)
Net sales 5,500,000 44,355
Income before income taxes 160,000 1,290
Net income 92,000 742




III. CONSOLIDATED STATEMENT OF INCOME



(Millions of yen, millions of U.S. dollars,
except % change figures)

Fiscal 1997
(% of net sales)

Fiscal 1996
(% of net sales)
% change
1997/1996

Fiscal 1997

Net sales
SPACE
Cost of sales
SPACE
Selling, general and administrative
SPACE expenses
Operating income

YEN4,948,437
(100.0)
3,528,326
(71.3)
1,236,330
(25.0)
183,781
(3.7)

YEN4,397,192
(100.0)
2,980,718
(67.8)
1,168,672
(26.6)
247,802
(5.6)
+12.5
SPACE
+18.4
SPACE
+5.8
SPACE
-25.8

$39,907
SPACE
28,454
SPACE
9,971
SPACE
1,482


Non-operating income
SPACE
SPACE SPACE Interest, dividends
SPACE SPACE Other
Non-operating expenses
SPACE
SPACE SPACE Interest
SPACE SPACE Other
116,435
(2.3)
14,105
102,330
178,994
(3.6)
60,463
118,531
30,080
(0.7)
15,936
14,144
126,564
(2.9)
69,793
56,771
+287.1
SPACE
SPACE
SPACE
+41.4
SPACE
SPACE

939
SPACE
114
825
1,443
SPACE
487
956

Income before income taxes

121,222
(2.4)
151,318
(3.4)
-19.9

978

Income taxes SPACE
SPACE
Minority interest in consolidated
SPACE subsidiary companies
Equity in earnings of affiliated
SPACE companies
24,900
(0.4)
5,018
(0.1)
277
-

76,376
(1.7)
4,029
(0.1)
6,253
(0.2)
-67.4
SPACE
-
SPACE
-95.6
SPACE
201
SPACE
40
SPACE
2

SPACE
Net income

91,581
(1.9)
77,166
(1.8)

+18.7

739

IV. SALES BY PRODUCT



Fiscal 1997
(% of net sales)

Fiscal 1996
(% of net sales)

% change
1997/1996

Fiscal 1997



C


&


C



SPACE
Communications systems
and equipment
SPACE
Computers and industrial
electronic systems
SPACE
Electron devices
SPACE
SPACE
YEN1,686,594
(34.1)
SPACE
2,078,480
(42.0)
SPACE
963,176
(19.5)
SPACE
YEN1,227,016
(27.9)
SPACE
1,942,858
(44.2)
SPACE
1,032,983
(23.5)
SPACE
+37.5
SPACE
SPACE
+7.0
SPACE
SPACE
-6.8
SPACE
SPACE
$13,602
SPACE
SPACE
16,762
SPACE
SPACE
7,767

SPACE
SPACE
C&C operations total
SPACE
SPACE
4,728,250
(95.6)
SPACE
4,202,857
(95.6)
SPACE
+12.5
SPACE
38,131

SPACE
SPACE SPACEOther operations
SPACE
SPACE
220,187
(4.4)

SPACE
194,335
(4.4)
SPACE
+13.3

SPACE
1,776

SPACE
SPACE SPACENet sales
SPACE
SPACE
YEN4,948,437
(100.0)

SPACE
YEN4,397,192
(100.0)
SPACE
+12.5

SPACE
39,907

V. CONSOLIDATED BALANCE SHEET

(Millions of yen, millions of U.S.dollars)
Fiscal 1997 Fiscal 1996 Increase/
decrease

Fiscal 1997
Current assets
SPACESPACECash and cash equivalents
SPACESPACETime deposits
SPACESPACEMarketable securities
SPACESPACENotes and accounts receivable, trade
SPACESPACEInventories
SPACESPACEOther current assets
Long-term receivables, trade
Investments and advances
Property, plant and equipment
Other assets
YEN2,627,033
350,494
359
108,943
1,131,258
940,867
95,112
43,162
510,577
1,340,596
277,797

YEN2,755,812
381,005
1,468
97,646
1,141,936
1,044,368
89,389
24,294
429,306
1,218,817
254,891
YEN-128,779
-30,511
-1,109
11,297
-10,678
-103,501
5,723
18,868
81,271
121,779
22,906
$21,186
2,826
3
879
9,123
7,588
767
348
4,118
10,811
2,240

Total assets YEN4,799,165 YEN4,683,120 YEN116,045 $38,703

Current liabilities
SPACESPACEShort-term borrowings and
SPACESPACE current portion of long-term debt
SPACESPACENotes and accounts payable, trade
SPACESPACEOther current liabilities
Long-term liabilities
Minority shareholders' equity in
SPACEconsolidated subsidiaries
Shareholders' equity
SPACESPACECommon stock
SPACESPACEAdditional paid-in capital
SPACESPACERetained earnings
SPACESPACECumulative translation adjustments
YEN2,351,967

954,217
947,163
450,587
1,378,265

65,562
1,003,371
200,403
312,192
487,175
3,601

YEN2,411,980

814,247
1,079,309
518,424
1,341,903

50,385
878,852
191,294
300,374
412,720
-25,536
YEN-60,013

139,970
-132,146
-67,837
36,362

15,177
124,519
9,109
11,818
74,455
29,137
$18,967

7,695
7,638
3,634
11,115

529
8,092
1,616
2,518
3,929
29

Total liabilities and shareholders' equity YEN4,799,165 YEN4,683,120 YEN116,045 $38,703

VI. SEGMENT INFORMATION

  1. Industry Segment Informaiton

    NEC's principal business is C&C operations, which comprise communications systems and equipment, computers and industrial electronic systems, and electron devices. In fiscal 1996 and 1997, C&C operations represented more than 90 percent of consolidated net sales, operating profit and assets.

  2. Geographic Segment Information

    (1) Fiscal 1996 (April 1, 1995 - March 31, 1996)

    Fiscal 1996(April 1,1995 - March 31, 1996)

    (2) Fiscal 1997 (April 1, 1996 - March 31, 1997)

    Fiscal 1997(April 1,1996 - March 31, 1997)

  3. Overseas Sales

    Overseas Sales

NOTE: The segment information above is prepared in accordance with the regulations under the Securities and Exchange Law of Japan.


[Copyright(C) NEC Corporation 1997. NEC and C&C are trademarks of NEC Corporation.]