Fujitsu 2005 Annual Report Download - page 40

38 Fujitsu Limited
Net Sales and Operating Income by Geographic Segment
(including intersegment)
(¥ Billions)
Increase
(Decrease)
Years ended March 31 2004 2005 Rate (%)
Net sales
Japan . . . . . . . . . . . . . . . . . . . . ¥4,071 ¥4,024 (1.2)
Europe . . . . . . . . . . . . . . . . . . . 563 596 6.0
The Americas . . . . . . . . . . . . . . 274 298 8.8
Others . . . . . . . . . . . . . . . . . . . 579 602 4.1
Intersegment elimination . . . . . (721) (760)
Consolidated net sales . . . . . . . ¥4,766 ¥4,762 (0.1)
Increase
Years ended March 31 2004 2005 (Decrease)
Operating income (loss)
Japan . . . . . . . . . . . . . . . . . . . . ¥203 ¥187 ¥(15)
Europe . . . . . . . . . . . . . . . . . . . 6 11 5
The Americas . . . . . . . . . . . . . . (13) 417
Others . . . . . . . . . . . . . . . . . . . 13 12 (1)
Unallocated operating costs
and expenses/
intersegment elimination . . . . . (60) (55) 4
Consolidated operating income . . ¥150 ¥160 ¥9
■ For reference: Net Sales by Customers’
Geographic Location
3. Capital Resources and Liquidity
Improvement in Financial Strength
As a result of the deterioration of performance following the
collapse of the IT bubble and the large charges stemming from
restructuring initiatives, there had been significant deterioration
in the Group’s financial condition. However, since fiscal 2003,
we have made progress in improving the soundness of our finan-
cial position. We were able to meet our goal of reducing interest-
bearing loans to ¥1,100 billion or below by the end of fiscal 2004,
ending the fiscal year with a balance of ¥1,082.7 billion ($10,120
million) as a result of cash flow generated from business opera-
tions as well as investment cash flow collected from sales of asset hold-
ings. As a result, our D/E ratio reached 1.26, drawing closer to our
medium-term goal of 1.0. Net interest-bearing loans, which sub-
tract cash and time deposits, were greatly reduced to ¥628.0 billion
($5,870 million), and the net D/E ratio reached 0.73. In terms of
management indices expressing financial stability and efficient use
of assets, in a number of areas we have exceeded the values for the
recent peak year of fiscal 2000.
We have also made efforts to deal with financial risks. In the
same way that we did in the previous fiscal year, in fiscal 2004 we
recognized upfront losses for problematic projects as soon as they
were determined, including for work not yet implemented. In
addition, we recorded valuation losses on idle property that we had
no plans to use. Moreover, with respect to deferred tax assets, we
recorded a valuation allowance to cover the amount in excess of
what we are likely to recover in the future.
Assets, Liabilities and Shareholders’ Equity
Total assets at the end of fiscal 2004 were ¥3,640.1 billion ($34,021
million), a reduction of ¥225.3 billion from the end of the previous
fiscal year. Total current assets were ¥1,981.5 billion ($18,519
million), a reduction of ¥34.0 billion from the end of the last fiscal
year. Inventories were reduced, mainly due to increased efforts in
manufacturing innovation.
Total fixed assets decreased by ¥191.3 billion from the end
of the prior fiscal year, to ¥1,658.6 billion ($15,502 million). Prop-
erty, plant, and equipment less accumulated depreciation
decreased by ¥75.1 billion, due to such factors as the shift to the
equity method of accounting for our compound semiconductor
business and the transfer of our PDP business. Investments and
long-term loans were reduced by ¥120.5 billion as a result of sales
of marketable securities and the posting of a valuation allowance
for deferred tax assets.
2005
(¥ Billions)
2004
2003
2002
2001
5,484
5,006
4,617
4,766
4,762
Japan
Europe
The Americas
Others
(Years ended March 31)