Fujitsu 2009 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2009 Fujitsu annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Geographical Segment Information
The following section provides information on sales (including
intersegment sales) and operating income in each of our principal
operating regions.
Japan
In Japan, the Company reported consolidated sales of ¥3,789.9
billion ($38,673 million), down 10.4% from fiscal 2007. While the
Services business grew mainly from higher demand in the SI busi-
ness and sales of routers to telecom carriers, sales were lower overall
due to a slump in demand for logic LSI devices and electronic com-
ponents. This was compounded by the lengthening replacement
cycle for mobile phones and increased competition in PCs and
HDDs. Operating income declined ¥134.4 billion year on year to
¥106.4 billion ($1,086 million). In addition to lower sales, income was
impacted by the effect of currency exchange rates on electronic
components, and by increased costs associated with more sophisti-
cated mobile phone functions.
EMEA (Europe, Middle East and Africa)
In EMEA, sales decreased 20.4%, to ¥612.8 billion ($6,254 million).
However, if currency exchange rate effects are excluded the result is
an increase of 4%. Although sales of optical transmission systems
and HDDs were lower, we recorded growth in the Services business
in private-sector business for continental Europe. Operating income
climbed ¥11.3 billion, to ¥12.0 billion ($123 million). The Services
business was negatively affected by currency exchange rates and
growth in initial costs associated with expanding the private sector-
oriented services business. Earnings rose, however, due to the rec-
ognition of losses from an unprofitable project in the UK in the
previous fiscal year. We also recorded fewer losses from optical trans-
mission systems thanks to lower development costs required for
Next- Generation Networks (NGN).
The Americas
Sales in the Americas fell 22.3% (or 15% excluding currency
exchange rate effects), to ¥365.2 billion ($3,727 million). Despite
higher sales of optical transmission systems, sales of UNIX servers,
HDDs, and automotive electronic equipment declined. The Services
business, meanwhile, was adversely impacted by deterioration in
market conditions. We recorded an operating loss of ¥1.3 billion
($14 million), representing a decline of ¥10.6 billion from the previ-
ous year’s operating income. In addition to lower sales, earnings
declined on higher development costs for NGN.
APAC (Asia-Pacific) & China
In APAC & China, sales decreased 23.3% (a decline of 17% excluding
currency exchange rate effects), to ¥656.0 billion ($6,694 million).
Operating income was ¥6.4 billion ($66 million), or ¥8.3 billion lower
year on year, owing mainly to lower sales of LSIs, electronic compo-
nents, HDDs, and automotive electronic equipment.
3. Capital Resources and Liquidity
Improvement in Financial Condition
In fiscal 2008, the Group continued its efforts to improve the
soundness of its financial position. However, the Group recorded
a net loss of ¥112.3 billion ($1,147 million) due to the posting of
substantial one-time losses, namely restructuring charges and
impairment losses accompanying business reorganization. The
owner’s equity ratio was 23.2%, down 1.6 percentage points year
0
300
900
600
1,200
856.9
748.9
948.2
969.5
917.0
23.5 23.2
24.8
24.6
24.1
2005 2006 2007 2008 2009 0
10
30
40
20
(¥ Billions) (%)
0
1,000
3,000
4,000
2,000
5,000
3,640.1
3,221.9
3,821.9
3,943.7
3,807.1
1.27 1.33
1.37
1.32
1.29
2005 2006 2007 2008 2009 0
0.5
1.5
2.5
2.0
1.0
(¥ Billions) (Times)
(As of March 31) (As of March 31)
Owners’ Equity: net assets less minority interests
0
2,000
4,000
6,000
4,762.7 4,692.9
5,330.8
5,100.1
4,791.4
2005 2006 2007 2008 2009
(¥ Billions)
(Years ended March 31)
For Reference: Net Sales by
Customers’ Geographic Location
Total Assets/
Total Assets Turnover Ratio
Owners’ Equity/
Owners’ Equity Ratio
Total Assets (Left Scale)
Total Assets Turnover Ratio (Right Scale)
Japan The Americas
EMEA APAC & China Owners’ Equity (Left Scale)
Owners’ Equity Ratio (Right Scale)
FACTS & FIGURES Management’s Discussion and Analysis of Operations
081
ANNUAL REPORT 2009
FUJITSU LIMITED