Fujitsu 2012 Annual Report Download - page 58

(Years ended March 31)
n n Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
Market Trends
China’s IT market is expected to continue its strong growth,
despite the impact from a decline in exports to Europe, and a
slight slowdown in the economic growth rate. Over the longer
term, the country’s economic structure will shift from depen-
dence on exports to being driven by private-sector domestic
consumption, and IT investment will increase with greater urban-
ization as foreign corporations gain more of a presence. IT invest-
ment in 2012 is projected to rise around 12.7% year on year, with
strong growth expected to continue at an average annual rate of
around 8.3% for the period from 2011 to 2015. GRAPH 1 This
continued investment is expected as China’s 12th Five-Year Plan
for state policy specifies information networking as an area for
strategic development and cultivation, and because companies
expanding into China are making plans to bolster production and
sales to meet domestic demand.
In Asia-Pacific (APAC), excluding China, growth in the IT
market is expected to be around 9.6% in 2012. In the short term,
curbs on investment will continue in response to the slowdown in
economic growth triggered by the European debt crisis and other
factors. Over the longer term, however, countries will push ahead
with infrastructure upgrades in line with economic development,
and growing companies will continue their IT investment. For the
period from 2011 to 2015, IT spending in the region is projected
to remain strong with growth of around 8.9% annually.
In ASEAN countries, economic growth is slowing as a result of
the flooding in Thailand. In other countries, however, public and
private-sector IT investment continues to increase amid growth in
consumer spending and capital expenditure. In the East Asia
region, the European debt crisis is slowing economies in the near
term, constraining IT investment. Over the longer term, however,
the IT market is projected to expand as a result of continued
economic growth. In India, internal demand, centered on public-
works projects and consumer spending, along with external
demand in areas such as software services as an export industry,
are expected to bring about high economic growth. Against this
backdrop the willingness to invest in IT is increasing, with a pro-
jected rise of around 18.7% in 2012, and a strong average annual
growth rate of 17.9% between 2011 and 2015. GRAPH 2
In the Oceania region, exports to China are substantial, making
the region easily swayed by the Chinese economy. However,
economic growth remains steady, supported by demand for
natural resources, and increased IT investment during 2012 is
expected to continue.
Initiatives Going Forward
In China, Fujitsu will grow its services business for both Japanese
and foreign-capitalized companies, and will develop local busi-
nesses in an effort to increase its solutions business overall. We
will utilize the South China Datacenter in Foshan, Guangdong
Province opened in April to the greatest extent possible, and
pursue business deals for private cloud services as one of
Fujitsu’s core middleware products. For the platform business, we
will raise sales to existing customers by focusing on value-added
businesses that offer x86 servers and storage as a set.
GRAPH 1
(Source: IDC The Worldwide Black Book Q1 2012)
(China: Including Hong Kong)
0
50
100
150
250
200
156.9
176.8 200.7 215.8
187.1
2011 2013 2014 20152012
(Billions of U.S. dollars)
IT Market Forecasts (China)
GRAPH 2
(Source: IDC The Worldwide Black Book Q1 2012)
(APAC: Excludes Japan, China, and Hong Kong)
0
100
300
200 182.8
200.3 237.6 257.0
218.2
2011 2013 2014 20152012
(Billions of U.S. dollars)
IT Market Forecasts (APAC)
GRAPH 3
Net Sales* and Operating
Income Margin
0
250
500
1,000
750
855.0
505.4 421.9
656.0
2008 2010 2011 20122009
6.0
4.5
3.0
1.5
0
1.7
2.6
1.0
1.8
405.1
2.7
(Billions of yen) (%)
APAC, CHINA
056 FUJITSU LIMITED ANNUAL REPORT 2012