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The global outlook for the Digital Government and Digital Finance business according to Tomoki Kubo: "Relocating to Europe has opened up a whole new realm of possibilities for us"

Japanese

With the digitalization of government and finance poised to revolutionize the world, NEC is seeking to accelerate the global expansion of its Digital Government (DG) and Digital Finance (DF) business. As part of these efforts, the company relocated its Digital Government and Digital Finance (DGDF) Business Unit Headquarters to Zurich, Switzerland, in August 2025. Tomoki Kubo, Corporate Executive Vice President and President of NEC's DGDF Business Unit, asserted that moving the decision-making function of the business unit was merely common sense, as it was made to demonstrate NEC's commitment. We recently spoke with Kubo about how being in Europe has opened up new opportunities for NEC and what he envisions for the future.

Joining forces with three European companies: The tangible results witnessed following relocation

NEC DGDF Headquarters relocates to Zurich to accelerate growth and enhance management globally
On April 28, 2025, NEC announced this relocation through a press release in which it described the aims of relocating the DGDF headquarters function as "accelerating the growth of its DGDF business globally and strengthening its operations and management through quicker decision-making and closer communication with its European subsidiaries and customers." In August, 11 members of the business unit, including Kubo himself, arrived in Zurich to get the new headquarters up and running.

Kubo said candidly, "Based on the local response, I would say that we are starting to see tangible results." As we learned in our interview with him, this journey to relocate NEC's DGDF headquarters was one of many twists and turns.

The DGDF Business Unit's predecessor was responsible for the global expansion of national ID and other projects leveraging NEC's biometric authentication technology. Between 2018 and 2020, NEC acquired several European companies to expand its global business into more stable and sustainable domains. The three companies it acquired were NEC Software Solutions UK, a company providing software and services to government agencies, municipalities, the police, hospitals, and other entities in the UK; KMD, the largest IT company in Denmark and one that has driven the digitalization of the Danish government; and Avaloq, Switzerland's leading financial software company.

For Kubo, who joined NEC in 2016, this series of acquisitions provided valuable experience with the company. While working on growing the business, Kubo was appointed president of the DGDF Business Unit in Japan in 2024. What was it that prompted him to embark on the relocation of its headquarters?

Conveying NEC's commitment together with colleagues who work directly with customers

"Nearly 100% of the DGDF Business Unit's revenue is generated through its global operations." Kubo told us that this relocation was initially spurred by a feeling that sprang up within him, explaining, "I began to wonder if it was acceptable for those of us who formulated the overall strategies and made the decisions to remain in Japan even though the members who work directly with customers and generate profits are overseas." He also added, "The biggest reason was that I wanted to convey NEC's commitment and resolve to engage in global business by stepping out of our comfort zone, namely, Japan."

Another factor was his desire to globalize operations. According to Kubo, taking the initiative as decision-makers to globalize the way in which operations are conducted, rather than leaving it up to local members, ultimately made it possible to compete globally. He expressed his enthusiasm for the future, saying, "With the DGDF Business Unit anticipated to achieve substantial growth and high profit margins, we will be setting our sights on spearheading efforts to boost NEC's global presence."

The response from the Swiss side has also been positive. Kubo's face beamed as he said, "Local members, including those at Avaloq, have warmly welcomed us, thanking us for making the move." He also says the Swiss government has been incredibly cooperative throughout the entire process, from visa issuance to procedural matters, providing the support they needed to get off to a smooth start. Reflecting on being invited as the first private company to attend Core Seminar 2025, an event bringing together Swiss ambassadors from all over the world, shortly after relocating, Kubo said, "I was impressed by not only how intrigued everyone was about NEC's business but also the sheer number of questions they asked us."

Tomoki Kubo participating in the tape-cutting ceremony held at the new office together with Martin Greweldinger, CEO of Avaloq

Kubo explained how getting their start on an office floor leased from Avaloq has proven beneficial in many ways, stating, "Avaloq members often come to my desk to speak with me, asking if I have five minutes to spare. Also, KMD already holds its Board of Directors meetings in Zurich, and we have had more opportunities to speak directly with customers. I anticipate there will be even more ways in which we can work together, and I am confident that locally based members feel the same way."

Creating synergies across all regions: "We've taken the first step toward true globalization"

In addition to being the year in which the DGDF Business Unit relocated to Switzerland, 2025 also marks Kubo's tenth year with NEC. Looking back over the past decade, Kubo told us, "I have felt the greatest sense of accomplishment in witnessing the synergies generated by the three companies we acquired begin yielding results."

According to Kubo, UK-based NEC Software Solutions UK has established a sales route through NEC Australia, and Denmark's KMD has begun providing proprietary products to the British government. Meanwhile, Avaloq has joined forces with NEC Laboratories Europe to integrate AI into its solutions. Kubo shared his collective thoughts on this, saying, "It has been encouraging to see them proactively consider how they can leverage NEC's assets without needing any guidance from us." Those at the management level are also promoting HR aimed at creating synergies. Tina Whitley, CEO of NEC Software Solutions UK, was appointed Corporate Senior Vice President of NEC Corporation in April 2025, a position in which she oversees government-related business in NEC Australia and NEC America.

Regarding his plans for shaping a medium- to long-term vision, Kubo emphasized the need to get ahead of the curve. In the domain of digital government, Kubo says, "Discussions about how to resolve the various problems arising as a result of our aging society have naturally become commonplace, and in the future it will be imperative to consider how we can leverage AI and other technologies." As for digital finance, Kubo explains, "While financial services were once only accessible to a specific group of high-net-worth individuals (HNWI), we anticipate that it will also become accessible to others, thereby enabling broader access to such services." By contributing in this way, NEC will be one step closer to fulfilling its Purpose, which is to achieve social value creation.

"NEC is back." This is something Kubo stressed at the end of the interview, adding, "This is the kind of value NEC brings to the table." NEC, which was founded 126 years ago as Japan's first foreign-affiliated company and has always focused on pursuing the most advanced technologies, is now reaffirming its identity as a global company. Kubo concluded by saying, "This recent relocation was carried out to ensure that this would not end with my generation but rather be passed on to the next one. I am determined to do everything in my power to ensure this action is remembered as a pivotal moment in NEC's efforts to become a truly global company."

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