© NEC Australia 2003

Presentation to the

9th World Electronics Forum

Research and Development at

NEC Australia Pty Ltd

© NEC Australia 2003

Corporate Profile - 2003

NEC Corporation

© NEC Australia 2003

Profile - NEC Corporation• Established : July 17, 1899

• President : Akinobu Kanasugi

• Capital : Y244.7 billion ($A3.22 billion - as of March 31, 2003

• Net Sales : Y4695 billion ($A61,780 million) to March 31 2003

• Major Operations The internet solutions business including of the NEC Group : the manufacture and sales of computers,

communications equipment, electron devices and software.

• Employees : 142,000

© NEC Australia 2003

NEC Globally

North America

4,943

Latin America

Asia

Europe

5,272

58Middle andNear East/Africa Oceania

1,4001,868

17,279

Japan: 111,180

Employees: 142,000

Sales: A$62B (2002)

R&D Investment: A$4.3B in 2002/3

© NEC Australia 2003

Research & Development in NEC

• R&D for future business (research) - 1500 employees in Japan, USA, Germany– Quantum Computing– IT - Bio (Super-computing for pharmaceuticals)– Fuel Cells (for mobile phones)– Carbon Nanotube Technology

• R&D for current business (development)– Broadband Internet– Mobile Internet– Intelligent Internet

• Total Expenditure 2002/3 A$4.3B (6.4% of sales)

© NEC Australia 2003

Corporate Profile - 2003

NEC Australia Pty Ltd

© NEC Australia 2003

Established : December 1969

Sales : A$474 Million (FY02/03)(Exports: A$110M, R&D: A$40M)

Employees : 1250 (400 engineers in R&D)

Business Focus : Business & Carrier Solutions Global R&D Centre

Export of locally designed productsHome Electronics

Quality Standards : ISO14001 & ISO 9001Australian and Defence Quality Award

Corporate Profile

© NEC Australia 2003

Our PresencePAPUA NEW GUINEA

NEW ZEALAND

Port Moresby

AUSTRALIA

8 Branch OfficesPlant & Technology Centre

NEC Australia (Head Office)

WestWestAustraliaAustralia

NorthernNorthernTerritoryTerritory

QueenslandQueensland

NSWNSW

SouthSouthAustraliaAustralia

TasmaniaTasmania

Adelaide

Perth

Darwin

Canberra

Sydney

Brisbane

MELBOURNE

Auckland

© NEC Australia 2003

Strategy in Australia

Originally NEC sold equipment to carriers, government and large/ small businesses and on the domestic market.

Strategy now is to provide:

- network solutions/services to carriers, ISP’s and government

- manage facilities (voice and data VOIP networks) for government, large and small businesses. (See attachment)

- design and development of products and services for domestic and export markets

© NEC Australia 2003

• Broadband Access Products (DSL)(ADSL, SHDSL, VoDSL, Video on DSL)

• Digital Mobile Phones (W-CDMA)(G2.5 and G2.5/3G)

• Mobile Satellite Systems(Networks and mobiles)

• Electronic Services Delivery(Credit card payment of government services, invoice presentment and part payment)

• Business Networks (PBX), Contact Centre Software

NEC Australia’s Mandated Products for R&D

© NEC Australia 2003

Network Solutions

Network Solutions involving system integration

• Mobile satellite networks - mobile handset– M-Sat Optus/Defence– M-Sat Telespazio (Italy and Europe)– Iconet Inmarsat/McGraw

• Broadband DSL (4M lines exported)– Nextep 98 sites in Australia– PCCW Hong Kong– NTT Japan– Singtel Singapore– Telecom Malaysia– Telecom Turkey

Our AchievementsR&D and Exports (1990-2003)

0

20

40

60

80

100

120

140

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Financial Year

AU

D (

'000

)

R&D Exports

© NEC Australia 2003

Research and Development in NEC Australia

• $40M per annum and 400 engineers (40 with postgraduate degrees.

• Focus is very much on product design and development.

• Critically focussed on local and overseas market outcomes– NEC Corporation

• Multilingual and multicultural skills available.

• Strong project management; on-time, full-documented, fully tested, cost effective

• Links to international standards critical

© NEC Australia 2003

Current R&D Projects at NEC/A

• Gigabit ethernet design for xDSL networks

• ASIC, Layer 1 software, hardware, RF circuits,

industrial design and applications for 2.5 and 3G

Mobiles

• VOIP Networks

• Electronic Services Delivery (e-commerce)