Fujitsu 2008 Annual Report Download - page 78

6) Environmental Pollution
While committed to minimizing environmental burden in accordance with the Fujitsu Way and the Fujitsu Group Environmental Policy,
the Group cannot guarantee that environmental pollution will not occur as a result of its operations. Moreover, although we monitor
soil and wastewater as well as engage in clean-up activities at former factory sites, this does not mean that pollution will not be found
at such sites in the future. In the event that environmental pollution were to occur or be identified, clean up and other costs could be
incurred, which would adversely affect the Group’s earnings.
7) Information Management
In order to safeguard the personal and confidential information of customers and business partners, the Group has taken such mea-
sures as establishing strict regulations, instituting training programs for employees, and providing consultation to business subcon-
tractors. Nevertheless, the Group cannot absolutely guarantee that information will not be leaked. In the unlikely event that this should
occur, trust in the Fujitsu Group could decline and the Group may be obligated to pay damages to customers.
8) Credit Ratings and Other Factors that Affect the Group’s Credit
In addition to having a major influence on financing, credit ratings by outside institutions serve as reliable sources of information when
conducting transactions with business partners. Lower credit ratings caused by failure to meet earnings targets, deteriorating financial
conditions and other reasons could influence our ability to procure needed funds and place the Group at a disadvantage in bidding
for projects and in other business dealings.
7. Natural Disasters and Unforeseen Incidents
Natural disasters and other unforeseen situations could have a major impact on the business results and financial standing of the
Fujitsu Group. Examples of the potential risks posed are found below.
1) Damage from Earthquakes, Other Natural Disasters and Accidents
The Group has taken measures to make its business sites more resistant to earthquakes and conducts regular inspections and disaster
readiness drills. Nevertheless, there is a possibility that the Group may be prevented from continuing operations due to damage to
facilities and equipment or interruptions in the supply of electricity or water as a result of earthquakes or other natural disasters and
accidents. Such occurrences could interrupt shipments to customers or disrupt shipments of parts for the Group’s internal use, thereby
affecting factory production at other Group business sites. Semiconductor fabs and other plants where high-precision processing is
carried out are particularly susceptible to the effects of earthquakes and other events. In the wake of such incidents, some time may
be required to resume normal operations due to the array of highly specialized equipment and devices used at these sites. Damage
caused by natural disasters may also hinder our ability to provide information system support for Group customers, which could inter-
rupt their business activities.
We have a well-developed system in place to ensure the integrity and stable operation of critical in-house networks, which are a
key element of our business infrastructure. However, the Group cannot guarantee its ability to prevent invasive computer viruses and
other disruptions from impeding network operations.
2) Geopolitical Risk
Conflicts, political instability, currency crises, natural disasters, epidemics or other events in nations or regions where the Fujitsu Group
operates could have a significant impact on its businesses.
8. Financial Statements
For more information, please refer to the section, “6. Critical Accounting Policies and Estimates,” on page 86.
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ANNUAL REPORT 2008FUJITSU LIMITED
BUSINESS AND OTHER RISKS