5% Operating Margin Target in the 2018 Medium-Term Management Plan
First written in FY2016. 2 of 4 entries say "Softened", first in FY2018. Latest entry: FY2019.
Nec moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
16 other companies' latest entry also says "Softened".
- FY2019SoftenedAnnual report
「Consolidated operating profit Target (budget) ¥50.0 billion ¥150.0 billion ¥200.0 billion 0% Actual ¥63.9 billion ¥58.5 billion ¥122.4 billion」
Against the ¥150.0 billion operating profit target for fiscal 2018, actual operating profit was ¥58.5 billion, and achievement was disclosed as 0%. - FY2018SoftenedAnnual report
「Existing businesses declined more than expected, making it difficult to achieve the ¥150.0 billion operating profit target set for fiscal 2018.」
The company explicitly states that the 2018 Mid-term Management Plan's operating profit target will be difficult to achieve because of the decline in existing businesses. - FY2017RestatedAnnual report
「We will establish an earnings structure capable of achieving a 5% operating margin.」
The 5% operating margin target under the 2018 Mid-term Management Plan remains in place. - FY2016First statedAnnual report
「In light of these circumstances, NEC Group formulated the 2018 Mid-term Management Plan in April 2016, setting out a mid-term management policy focused on (1) rebuilding its earnings structure and (2) returning to a growth trajectory. (1) Rebuilding the earnings structure: We will establish an earnings structure capable of achieving a 5% operating margin.」
The new mid-term plan sets a measurable profitability target of a 5% operating margin.