Fujitsu 2000 Annual Report Download - page 18

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($15,144 million). Owing to the expansion of Internet
usage, domestic sales of PCs and UNIX servers were buoy-
ant, and overseas sales of small form factor hard disk drives
for notebook PCs and UNIX servers also increased.
However, because of lower IT investment globally due to
Y2K-related concerns, sales of global servers fell in Japan,
the Americas and Europe.
In addition to an ¥87.8 billion ($828 million) impact on
overseas sales due to yen appreciation, the sales decline in
this category was also attributable in part to the October
1999 merger of Fujitsu's European PC manufacturing and
sales subsidiary with a unit of Germany's Siemens AG,
making the resulting joint venture company subject to the
equity accounting method.
Operating income for the category dropped 58.7%, to
¥38.8 billion ($366 million). This reduction was attributable
primarily to lower sales of corporate information systems,
as well as increased competition in large-scale servers
(especially in the US) and substantial price erosion in the
small form factor hard disk drive and desktop products
businesses.
Telecommunications
Domestic sales in the telecommunications segment rose
5.3%, to ¥417.2 billion ($3,936 million), while overseas
sales expanded 24.7%, to ¥355.1 billion ($3,350 million).
For the segment as a whole, consolidated sales improved
13.4%, to ¥772.4 billion ($7,287 million). Offsetting
increasingly severe market competition in China, which
caused a decrease in sales of switching systems, and a
¥44.6 billion ($420 million) decrease in the value of over-
seas sales due to yen appreciation, our aggressive efforts to
increase both the speed and capacity of network systems
that provide Internet and database support were successful;
US sales of optical transmission systems surged, and sales
of large-scale optical submarine cables also increased. Due
in part to active promotion of leading-edge R&D in next-
generation mobile communications systems for IMT-2000,
growth in operating income in this business segment was
limited to a gain of 9.6%, to ¥17.1 billion ($161 million).
Electronic Devices
Overall consolidated sales of electronic devices rose 12.1%,
to ¥568.1 billion ($5,359 million), including domestic sales
of ¥296.3 billion ($2,795 million), up 24.4%, and overseas
sales of ¥271.8 billion ($2,564 million), which were up
1.3%. Although overseas sales were subjected to a nega-
tive yen conversion effect of ¥24.7 billion ($233 million),
our efforts to restructure our DRAM business and concen-
trate management resources on higher-value-added
products bore fruit. Demand soared for flash memories
and logic ICs used in mobile telephones and digital AV
equipment, prompting significant sales increases in this cat-
egory. Also favorable were sales of SAW filters for mobile
telephones and compound semiconductors for optical
transmission systems. As a result, operating income for the
electronic devices segment in fiscal 1999 was ¥20.1 billion
($190 million), compared with a ¥83.3 billion loss in fiscal
1998.
Financing
In fiscal 1999, the financing segment generated consolidat-
ed sales of ¥113.0 billion ($1,066 million) and operating
income of ¥3.0 billion ($28 million). This segment was
added as the result of the inclusion of Fujitsu Leasing as a
consolidated subsidiary beginning in fiscal 1999.
Other Operations
Total sales accounted for by other operations edged up
0.6% from the preceding period, to ¥220.6 billion ($2,081
million). Domestic sales rose 0.4%, to ¥158.1 billion
($1,492 million), while overseas sales expanded 1.2%, to
¥62.4 billion ($589 million). Operating income in this busi-
ness segment amounted to ¥3.4 billion ($32 million).
Geographic Segment Information
Japan
Overall domestic sales grew
6.3%, to ¥3,631.0 billion
($34,254 million), thanks to
improvements in the semi-
conductor business. Domestic
operating income improved
8.9%, to ¥227.7 billion
($2,148 million).
Europe
Sales in European markets
sank 21.7%, to ¥787.5 bil-
lion ($7,429 million), owing
to the combined effects of
sluggish sales of ICL's ser-
vices and software and yen
appreciation, as well as the
shift to the equity account-
ing method for consolidating
the results of our European
PC sales and manufacturing
subsidiary following its
merger with a unit of
'96 '97 '98 '99 '00
5,242
4,985
4,503
3,761
5,255
Net Sales by Customers’
Geographic Location
(¥ Billion)
(Years ended March 31)
Japan
Europe
The Americas
Other