Revenue distribution by sectors:

• IT Services: 40%
• Network Infrastructure: 25%
• Public Safety and Defense: 20%
• Telecommunication Solutions: 15%

TOP 3 markets and their percentage shares:

• Japan: 50%
• North America: 20%
• Europe: 15%

NEC Corporation generates the majority of its revenue from IT services, followed by network infrastructure and solutions in the public safety and defense sector. The domestic market of Japan remains the strongest market for NEC, followed by North America and Europe. These markets are crucial for the company as they are both technologically advanced and economically stable, allowing NEC to effectively market its innovative solutions.

Production Sites: Japan, China, India, Brazil, USA

NEC Corporation has a variety of production sites worldwide. The majority of production takes place in Japan, where the company is headquartered. In addition, NEC operates manufacturing facilities in China and India to efficiently serve the Asian markets.

In Brazil and the USA, NEC also maintains production sites to meet the demand in the American markets. This geographical diversification enables NEC to flexibly respond to market requirements and streamline supply chains.

Strategic Focus: Digital Transformation and 5G Expansion (2025)

NEC Corporation pursues a strategy that is strongly focused on digital transformation and expansion in the 5G sector. The company invests significantly in research and development to provide innovative solutions in the areas of Artificial Intelligence, Internet of Things (IoT), and cybersecurity.

Another key element of the growth strategy is global expansion, particularly in emerging markets, to meet the demand for advanced IT and networking solutions. NEC also aims to establish partnerships with leading technology companies to expand its market presence and product range.

In addition, NEC places a focus on sustainability and the development of environmentally friendly technologies to meet the increasing demands of ESG criteria. This is intended not only to strengthen the company's image but also to open up new business opportunities.

Main raw materials: Rare earths, copper, aluminum

Countries of origin:

• Rare earths: China
• Copper: Chile, Peru
• Aluminum: Australia, Canada

NEC Corporation, as a leading company in the technology and electronics industry, imports a variety of raw materials that are essential for the production of its products. These include rare earths, which are needed for the production of electronic components such as semiconductors and displays. China is the main supplier of rare earths, as it has the largest deposits and production capacities worldwide.

Copper is another important material for NEC, as it is used in wiring and electronic circuits. The main suppliers of copper are Chile and Peru, which are among the world's largest copper producers.

Aluminum is used in the production of casings and other structural components. Australia and Canada are significant suppliers of aluminum, as they have large bauxite deposits and a well-developed aluminum industry.

These sources of imports are crucial for maintaining NEC's production capacities and competitiveness in the global market.

Market share in the IT sector: 4.2% (2024)
R&D expenses: 5.8% of revenue (2024)
Net profit margin: 6.1% (2024)

NEC Corporation has a solid competitive advantage that consists of several factors. The company is known for its strong presence in the IT and telecommunications sector, especially in Japan. With a market share of 4.2% in the global IT sector, NEC demonstrates a respectable position, even when competing against larger international competitors.

An essential aspect of NEC's competitive advantage is its commitment to research and development, which accounts for 5.8% of revenue. These investments enable the company to develop innovative products and services that meet the rapidly changing market demands.

Additionally, NEC maintains a stable net profit margin of 6.1%, indicating an efficient cost structure and an effective business strategy. These factors together strengthen NEC's position in the market and provide a sustainable competitive advantage over other companies in the industry.

Institutional investor share: approx. 45% (2025, estimated)

Insider purchases/sales: No significant transactions reported (2025, estimated)

The institutional investor share in NEC Corporation is estimated to be around 45%. This demonstrates the confidence of major investors in the company's stability and growth potential.

Regarding insider transactions, no significant purchases or sales were reported in 2025. This could indicate that the management and other insiders are satisfied with the current company strategy and performance.

Market share of NEC Corporation: 4.5% (estimated for 2025)

Main competitors and their market shares:

1. Fujitsu Limited: 8.2%
2. Hitachi, Ltd.: 7.9%
3. Panasonic Corporation: 6.5%
4. Toshiba Corporation: 5.8%
5. NEC Corporation: 4.5%
6. Mitsubishi Electric Corporation: 4.2%
7. Sony Corporation: 3.9%
8. Sharp Corporation: 3.5%
9. Nippon Telegraph and Telephone Corporation (NTT): 3.2%
10. Kyocera Corporation: 2.9%

Moat of NEC Corporation:

NEC Corporation has a moderate moat, mainly supported by its strong position in the information and communication technology (ICT) sector and its long-standing experience in the market. The company benefits from a wide range of products and an established customer base, especially in the public sector and among large enterprises.

However, compared to its competitors, NEC's moat is less pronounced than some other companies like Fujitsu and Hitachi, which have larger resources and a more diversified range of products and services. These companies often also have a stronger international presence, giving them additional competitive advantages.

NEC could strengthen its moat by investing in innovative technologies and advancing its international expansion. Currently, competition in the industry is intense, and many companies are heavily investing in research and development to enhance their market position.

Revenue Growth: 7.8% (2024) Profit Growth: 5.5% (2024) R&D Expenses: 4.2% of revenue (2024)

In 2024, NEC Corporation achieved solid revenue growth of 7.8%, driven by increased demand for its IT and networking services. Profit growth stood at 5.5%, indicating efficient cost control and productivity improvements.

NEC continuously invests in research and development, allocating 4.2% of its revenue to this area. These investments are crucial for developing new technologies and maintaining competitiveness in a rapidly changing market.

Additionally, NEC has undertaken strategic partnerships and acquisitions to strengthen its market position and explore new business fields. These measures could lead to further growth and diversification of revenue sources in the long term.

Overall, NEC demonstrates positive business development with a focus on innovation and expansion, making the stock a potentially attractive investment, especially for investors interested in long-term growth.

Dividend yield: 2.5% (estimated for 2025)

Dividend history: Continuous distribution over the past 5 years

NEC Corporation has regularly distributed dividends to its shareholders in recent years. The estimated dividend yield for the year 2025 is around 2.5%. This distribution is relatively reliable as NEC has a solid financial foundation and stable earnings.

Over the past five years, the company has maintained its dividend policy, indicating a certain level of continuity and reliability. NEC's ability to pay dividends is supported by its strong market position and continuous innovation strategies.