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4Fujitsu Limited
앮 A Conversation with the President
Our operations were previously categorized under Software & Services, Plat-
forms, and Electronic Devices, in other words, from the producer’s perspec-
tive. We decided to change these business segment classifications to make
them more customer-centric and ensure they better reflect the nature of our
businesses. We have also added the term “solutions” to each segment to clearly
emphasize our business objective at Fujitsu—provide solutions that convert
technology into business value for our customers.
First, I’d like to talk about our Technology Solutions segment. IT systems only begin to generate
value once they are in operation and actually being utilized. But if we just talk to customers about IT
services or servers, they see them as nothing more than structural elements of their IT operations. With
IT becoming increasingly complex, we have decided to focus on providing value by helping to weave
together these various elements for customers. So, aiming to link technology with actual usage as our
business objective, we have brought together Services and System Platforms under the same Technol-
ogy Solutions segment.
Next is our Device Solutions segment. Electronic devices are central to our technology, and in this
area we have nearly completed our shift in focus to logic LSI devices. Going forward, we plan to leverage
our strengths in software and verification and analysis technologies to offer customers solutions that
deliver even greater added value.
Our other main segment is Ubiquitous Product Solutions. Hard disk drives (HDDs), personal com-
puters (PCs) and mobile phones are unique markets in their own right and are characterized by intensi-
fying global competition. Focusing on achieving even greater sophistication in our supply chain
management and in manufacturing innovation, we created this new segment in order to pursue further
advances in these operations as independent businesses.
쎱 What prompted the change to Fujitsu’s business segments in fiscal 2005?
Consolidated net sales in fiscal 2005 grew just 0.6% year on year to ¥4,791.4
billion. This primarily reflected strong growth in overseas sales, particularly
in optical transmission systems in North America and outsourcing services
in the UK, as opposed to Japan, where sales of servers and in some other
businesses were sluggish. Buoyed by higher revenues from overseas busi-
ness, as well as success in enhancing manufacturing innovation to cut costs,
and reducing losses from loss-generating systems integration projects in Japan,
we reported an increase in operating income of 13.3%, to ¥181.4 billion.
쎱 How would you assess Fujitsu’s performance in fiscal 2005?