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2
To Our Shareholders
Fiscal 2002 Summary
Fujitsu faced another challenging market environment in fiscal 2002, as market conditions in the
U.S. continued to deteriorate amidst the aftermath of the telecom bubble and global deflationary
trends. To ensure our future competitiveness in global markets, we continued the comprehensive
restructuring initiatives we began the previous year. We streamlined our operations. We looked
for ways to cut costs throughout our organization. And we dedicated ourselves to developing new
business. As a result of these efforts, we succeeded in generating a major turnaround, posting
consolidated operating income of ¥100.4 billion, despite a decline in sales.
Our consolidated net sales were ¥4,617.5 billion, down 7.8% from the previous year. While sales
of PCs and mobile phones increased, overall sales of platform products declined sharply as telecom
carriers worldwide cut back on new investments and large-scale system orders in Japan,
particularly from financial institutions, dropped off. Our services business also recorded lower
sales to the telecommunications and financial sectors. Sales of semiconductors increased, however,
as a result of much stronger demand for logic chips and flash memory products.
We managed a significant turnaround in operating income, moving from a loss of ¥74.4 billion
the previous year to a profit of ¥100.4 billion in fiscal 2002. Our software and services business
achieved better productivity in software development and improved profitability in our U.S. and
U.K. services subsidiaries. Our platforms business returned to profitability as a result of
restructuring initiatives. And our electronic devices business managed to trim operating losses.
With the extraordinary losses stemming from restructuring charges and a charge to cover corrective
measures for certain small form-factor hard disk drives, however, we recorded a consolidated net
loss of ¥122.0 billion.
By clamping down on capital expenditures, allocating funds to only the most promising growth
areas, and selling a portion of our investment securities, we generated free cash flow of ¥53.3
billion.
Restructuring Initiatives in Fiscal 2002
Following the major restructuring we undertook the previous year, in order to further improve our
cost structure to cope with increasingly stringent market conditions, we implemented another
round of restructuring in fiscal 2002, mainly in our platforms and electronic devices businesses.
Spending constraints among telecom carriers—in Japan as well as North America—continued to
be severe. To cope with these business realities, we reorganized our telecommunications
equipment production facilities in Japan, as well as our development and production operations for
telecom components.
We also reorganized our printed circuit board production facilities in Japan. We spun off our
From left:
Naoyuki Akikusa, Chairman and Representative Director
Hiroaki Kurokawa, President and Representative Director
Summary of Results