Fujitsu 2012 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2012 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 145

  • 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
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145

0
300
600
1,200
900
0.45
0.14
577.4
0.20
0.72
883.4
887.3
0.94
0.36 0.47
1.18
2008 20102009 2011 2012
2.0
1.5
1.0
0.5
0
381.1
0.57
0.14
470.8
(¥ Billions) (Times)
Interest-Bearing Loans,
D/E Ratio and Net D/E Ratio
n n
Interest-bearing loans (left scale)
D/E ratio (right scale)
Net D/E ratio (right scale)
(As of March 31)
0
100
200
400
300
113.4
49.1
296.4
23.4
38.1
2008 20102009 2011 2012
(¥ Billions)
Free Cash Flow
(Years ended March 31)
0
50
100
250
200
150 105.3
2.4
132.5
2.9
94.3
2.0
68.7
204.9
3.8
1.5
2008 20102009 2011 2012
10
8
6
4
2
0
(¥ Billions) (%)
Operating Income and
Operating Income Margin
n n
Operating income (left scale)
Operating income margin (right scale)
(Years ended March 31)
0
400
800
1,200
841.0
28.6
821.2
27.2
798.6
24.7
748.9
948.2
24.8 23.2
2008 20102009 2011 2012
60
40
20
0
(¥ Billions) (%)
Owners’ Equity and
Owners’ Equity Ratio
n n
Owners’ equity (left scale)
Owners’ equity ratio (right scale)
(As of March 31)
–80
–40
0
80
40 20.64
5.1
26.62
6.8
45.21
12.0
–54.35
23.34
5.0
–13.2
2008 20102009 2011 2012
30
15
0
–15
–30
(Yen) (%)
EPS (Net Income (Loss) per Share),
ROE (Return on Equity)
n n
EPS (left scale)
ROE (right scale)
(Years ended March 31)
A Message from the CFO
Performance in Fiscal 2011
The global economy during fiscal 2011 saw Europe’s worsen-
ing sovereign debt crisis and a fallback to negative growth
take a toll on the real economy. In the United States, a full-
fledged economic recovery remained elusive, despite promis-
ing signs in the country’s employment environment and
consumer spending. In emerging markets, while growth rates
remained high, the pace was somewhat subdued, reflecting
the effects of monetary tightening, as well as a decline in
exports tracking the economic slowdown in Europe.
In Japan, the economy had at one point emerged from
stagnation triggered by the Great East Japan Earthquake,
thanks to faster-than-anticipated recovery in the supply
chain. However, the slowdown in overseas economies, cou-
pled with a strong yen and the impact of catastrophic flood-
ing in Thailand, caused the economy to stall once again.
Entering the fourth quarter, the economy showed signs of a
turnaround on the recovery of operations damaged by the
flooding in Thailand.
With respect to IT investment in Japan, though there were
signs of a rebound in demand in certain sectors, a full-scale
recovery remained out of reach as an overall cautious
approach to investment continued to prevail.
In this climate, consolidated net sales for fiscal 2011
amounted to ¥4,467.5 billion, a decline of 1.3% from fiscal
2010. Excluding the impact of foreign exchange fluctuations,
however, sales were on par with the previous fiscal year. Sales
in Japan were essentially unchanged from fiscal 2010. How-
ever, the impact of lower sales due to customer production
cutbacks triggered by the flooding in Thailand was especially
evident in car audio and navigation systems, and LSI devices.
Along with the impact of weak demand for LSI devices and
electronic components, server-related revenues fell on a
decline in business deals for large-scale systems. These nega-
tive factors were largely balanced out, though, by increased
sales of mobile phones atop broader uptake of smartphones,
as well as mobile phone base stations and other network
products. Sales outside Japan decreased 5.1%. Excluding the
Approach to Financing Activities and Credit Rating Status
To ensure efficient fund procurement when the need for
funds arises, Fujitsu views the maintenance of an appropri-
ate level of liquidity as an important policy with respect to
its financing activities. “Liquidity” refers to cash and cash
equivalents and the total unused balance of financing
frameworks based on commitment lines established with
multiple financial institutions. As of March 31, 2012, the
Group had liquidity of ¥464.2 billion ($5,661.0 million), of
which ¥266.6 billion ($3,252.0 million) was cash and cash
equivalents and ¥197.5 billion ($2,408.5 million) was the
yen value of unused commitment lines.
To raise funds from global capital markets, Fujitsu has
acquired bond ratings from Moody’s Investors Service
(Moody’s), Standard & Poor’s (S&P), and Rating and
Investment Information, Inc. (R&I). As of March 31, 2012,
Fujitsu had bond ratings (long-term/short-term) of A3
(long-term) from Moody’s, A– (long-term) from S&P, and
A+ (long-term) and a-1 (short-term) from R&I.
022 FUJITSU LIMITED ANNUAL REPORT 2012