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150.3
3.2 3.4 3.8 3.6 3.8
1.5
160.1
181.4 182.0
204.9
68.7
200920082004 2005 2006 2007
300
200
100
0
9
6
3
0
1277.1
1082.7
928.6
745.8
887.3 883.4
200920082004 2005 2006 2007
1,500
1,000
500
0
3
2
1
0
1.54
1.26
1.01
0.77
0.94
1.18
3.00
6.00 6.00 6.00
8.00 8.00
200920082004 2005 2006 2007
9
6
3
0
profitability, primarily from the consolidated group (consolidated
tax accounting base). We therefore planned to pay an interim divi-
dend of ¥5 per share and a total annual dividend of ¥10 per share,
the level prior to the collapse of the IT bubble in fiscal 2000.
However, a once-in-a-century global economic crisis emerged
halfway through the fiscal year, which caused a steep decline in
performance compared to initial forecasts, primarily in the Ubiqui-
tous Product Solutions and Device Solutions segments. Com-
pounded with restructuring charges and impairment losses, the
result was a net loss of ¥112.3 billion.
For this reason, we reduced the year-end dividend by ¥2 com-
pared to the previous fiscal year and our initial plans, to ¥3 per share.
As a result, including the interim dividend of ¥5 per share, we paid
an annual dividend of ¥8 per share, the same as the previous year.
Regarding dividends from surplus, we intend to continue paying a
cash dividend twice a year, at the end of the second quarter and at
the end of the term, in principle. We are planning to pay an annual
dividend in fiscal 2009 of ¥6 per share, which includes a ¥3 per share
interim dividend, given that the current harsh economic environ-
ment is expected to continue for the foreseeable future.
billion. Interest-bearing loans amounted to ¥883.4 billion as a result
of allocating funds to redeem bonds and for acquisitions in the first
quarter of the current fiscal year (ending March 2010). This put the
D/E ratio at 1.18 times, above the target 1.0 mark. However, net
interest-bearing debt (after subtracting cash and cash equivalents)
was ¥355.3 billion, bringing the net D/E ratio to 0.47 times. Going
forward we will continue to strive for a D/E ratio of less than 1.0
times by improving earnings and asset efficiency.
The monthly inventory turnover rate was 0.98 times, 0.05 points
worse than the previous fiscal year, due to steep declines in demand
and lower income caused by the strong yen. We will make a
renewed effort to improve efficiency to meet our medium-term
target of 2.0 times.
Dividend Policy
Under the Fujitsu Group’s basic policy on the distribution of earn-
ings, a portion of retained earnings is paid to shareholders to provide
a stable return, and a portion is retained by the company to
strengthen its financial base and support new business develop-
ment opportunities that will result in improved long-term perfor-
mance. In addition, taking into consideration the level of profits,
Fujitsu aims to increase the distribution of profits to its shareholders
when the financial base is sufficiently strong enough, including
through share buybacks.
At the start of fiscal 2008, business performance was solid, pri-
marily driven by Technology Solutions, and it seemed likely that
deferred tax assets would be recovered thanks to improved
(¥ Billions) (%) (¥ Billions) (Times) (Yen)
(Years ended March 31) (As of March 31) (Years ended March 31)
Operating Income and
Operating Income Margin
Interest-bearing Loans and
D/E Ratio
Cash Dividends per Share
Operating income (left scale)
Operating income margin (right scale)
Interest-bearing loans (left scale)
D/E ratio (right scale)
MANAGEMENT A Message From the CFO
021
ANNUAL REPORT 2009
FUJITSU LIMITED