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8Fujitsu Limited
■ Building a Global PSC* Network
Providing comprehensive support
close to customer operating sites
2002: Germany
Nov. 2004: UK
Dec. 2004: Japan (Tokyo)
May 2005: Singapore,
US (California)
Sep. 2005: South Korea
Apr. 2006: China (Shanghai)
Jun. 2006: China (Hong Kong)
* Platform Solution Center
In Network Products, in addition to steady expansion of our business in
North America, in Europe we signed an agreement with BT Group plc as a
preferred supplier for its 21st Century Network program. Looking ahead, we
intend to offer the world’s most advanced technologies as a partner to leading
communications carriers in Japan, the US and Europe.
We are forecasting an 8.5% increase in sales in fiscal 2006, driven by further
expansion of our overseas business and initiatives to tap into recovering IT spend-
ing in Japan. In recent years, our emphasis has been on enhancing operational
efficiency. Now, we intend to aggressively invest in growth fields to achieve sus-
tained profitable growth. In fiscal 2006, we are budgeting ¥350.0 billion in capital
expenditure, focused primarily in Device Solutions and Technology Solutions.
This represents a year-on-year increase of 40.1%. Still, we are committed to post-
ing higher earnings and are targeting an increase in operating income to ¥190.0 billion.
In Device Solutions, we are channeling resources into logic LSI products. In our world-class advanced
logic LSI business, we are front-loading investment to meet surging demand from existing customers. In
fiscal 2006, we plan to invest ¥180.0 billion, primarily in 300mm wafer semiconductor production facili-
ties (Fab No. 1 and Fab No. 2) at our Mie Plant. In Technology Solutions, we will invest a total of ¥120.0
billion to bolster our domestic and international outsourcing, server, and next-generation network busi-
nesses, while in Ubiquitous Product Solutions we will invest ¥30.0 billion in our HDD, PC and mobile
phone operations.
쎱 Please explain Fujitsu’s investment strategy in fiscal 2006.
181 249 350
17017093
0
100
200
300
240 241 255
22
76
17
65
21
115
19
93
20
180
30
120
Capital expenditure
2005 (Actual) 2006 (Actual) 2007 (Plan)
Consolidated FCF*
* Free cash flow for business operations, excluding sales of shareholdings and other items
(Billions of Yen)
■ Investing for Growth
Capital and R&D expenditure
■ R&D expenditure
Capital expenditure
■ Corporate and other
■ Device Solutions
■ Ubiquitous Product
Solutions
■ Technology Solutions
Years ended March 31