Fujitsu 2010 Annual Report Download - page 96

0 20
300
600
900
1,200 40
35
30
25
917.0
24.1
798.6
24.7
748.9
23.2
948.2
24.8
969.5
24.6
2006 2008 2009 20102007
0 1.0
1,000
2,000
3,000
5,000
4,000
2.0
1.8
1.6
1.4
1.2
3,807.1
1.29
3,228.0
1.45
3,221.9
1.33
3,821.9
1.37
3,943.7
1.32
2006 2008 2009 20102007
(¥ Billions) (%)(¥ Billions) (Times)
by the Company of its remaining shares in FANUC in accordance
with a solicitation by FANUC to repurchase its own shares. This sale
had the effect of reducing investments and long-term loans com-
pared to the previous fiscal year-end.
Current assets were ¥1,871.9 billion ($20,129 million), a
decrease of ¥15.5 billion compared to March 31, 2009. Although
receivables, trade, and inventories increased as a result of the
consolidation of Fujitsu Technology Solutions, cash and cash equiv-
alents decreased due to the redemption of bonds. Inventories
stood at ¥322.3 billion ($3,466 million), an increase of ¥15.8 billion
from the end of the previous fiscal year. If the effects of consolidat-
ing Fujitsu Technology Solutions and HDD business transfer are
excluded, inventories were approximately the same level as at the
end of fiscal 2008. The monthly inventory turnover rate, which is an
indication of asset efficiency, was 1.04 times, an improvement of
0.06 times from the end of the previous fiscal year. This was the
result of progress in raising inventory efficiency, particularly in
product-related businesses such as servers, PCs and mobile
phones, as well as the HDD business transfer.
Investments and long-term loans declined ¥35.9 billion year on
year, to ¥414.1 billion ($4,453 million), principally from the sale by the
Company of its remaining shares in FANUC in accordance with a
solicitation by FANUC to repurchase its own shares. Intangible assets
amounted to ¥279.2 billion ($3,002 million), up ¥67.8 billion year on
year, due mainly to an increase in goodwill accompanying the con-
version of Fujitsu Technology Solutions into a consolidated subsidiary.
Total liabilities were ¥2,279.6 billion ($24,513 million), down
¥16.7 billion from March 31, 2009. Although payables, trade, and
accrued retirement benefits increased as a result of consolidating
Fujitsu Technology Solutions, interest-bearing loans, inclusive of
current liabilities (short-term borrowings and current portion of
long-term debt) and long-term liabilities (long-term debt), stood at
¥577.4 billion ($6,209 million), down ¥306.0 billion from March 31,
2009. This decrease owed to progress in repaying interest-bearing
loans, mainly through the redemption of ¥250 billion in convertible
bonds and ¥50 billion in straight bonds that matured in 2009. The
D/E ratio was 0.72 times, and the net D/E ratio was 0.2 times.
Net assets amounted to ¥948.3 billion ($10,198 million), an
increase of ¥22.7 billion year on year. Minority interests in consoli-
dated subsidiaries declined ¥26.9 billion as a result of the Com-
pany’s open-market purchase of its own shares to make an
allotment to minority shareholders of Fujitsu Business Systems
Ltd.*1 (Fujitsu Business Systems), in order to convert that company
into a wholly owned subsidiary. In addition, while total valuation
and translation adjustments decreased by ¥33.2 billion as a result
of the realization of unrealized gains on securities from the sale of
shares in FANUC and other investment securities, total sharehold-
ers’ equity increased by ¥82.9 billion due to the net income
recorded for fiscal 2009. As a result, the owners’ equity ratio*2 was
24.7%, up 1.5 percentage points year on year. This improvement
virtually offset deterioration in the owners’ equity ratio caused by
the net loss recorded in fiscal 2008, returning to the same level as
at the end of fiscal 2007.
Regarding the unrecognized obligation for retirement ben-
efits*3, the level in Japan fell by ¥112.0 billion year on year, to ¥276.5
billion ($2,974 million) at the end of fiscal 2009, due to improve-
ment in the performance of pension plan assets under manage-
ment. Outside Japan, the level rose by ¥98.5 billion to ¥110.0 billion
($1,183 million). Despite an improvement in pension plan asset
performance outside Japan, there was an increase due to a reduc-
tion in the discount rate*4, primarily at a subsidiary in the U.K.
*1 Fujitsu Business Systems Ltd. will be renamed Fujitsu Marketing Limited on
October 1, 2010.
*2 Calculated as owners’ equity (total net assets – subscription rights to shares –
minority interests in consolidated subsidiaries) divided by total assets.
*3 Unrecognized obligations consist primarily of unrecognized actuarial losses.
“Actuarial losses” refer to disparities that occur chiefly as the result of differences
between expected and actual returns from pension plan assets under manage-
ment, differences between the estimates used for the actuarial calculation of
retirement benefit obligations and actual obligations, and changes in estimates.
Of these differences, those that have not yet been expensed are referred to as
“unrecognized actuarial losses.” The Group expenses actuarial losses that arise
over the average remaining service period of its employees.
*4 Refers to the rate used to discount to present value the amount of expected
retirement benefits deemed to be incurred for each projected retirement period
incurred by the fiscal year-end. The rate is decided with reference to interest on
high-quality corporate bonds as of the balance-sheet date.
Owners’ Equity/
Owners’ Equity Ratio
Total Assets/
Total Assets Turnover Ratio*
Owners’ Equity (Left Scale)
Owners’ Equity Ratio (Right Scale)
Total Assets (Left Scale)
Total Assets Turnover Ratio (Right Scale)
(As of March 31)(As of March 31)
* Net Sales divided by Average Total Assets
094 FUJITSU LIMITED Annual Report 2010
Management’s Discussion and Analysis of Operations