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FUJITSU LIMITED Annual Report 2007
FUJITSU LIMITED
Annual Report 2007
Ta c k l i n g Ne w C h a l l e n g e s

Table of contents

  • Page 1
    Tackling New Challenges FUJITSU LIMITED Annual Report 2007

  • Page 2
    ...of us has a leading role to play Quality We aim to earn customers' trust in Fujitsu Environment Profits & Growth We consider environmental impact in all that we do We strive to meet the expectations of customers, employees and shareholders Code of Conduct Respect human rights Comply with laws and...

  • Page 3
    ...statements due to, without limitation, the following factors: general economic and market conditions in key markets (particularly in Japan, North America, Europe and Asia, including China); rapid changes in the high-technology market (particularly semiconductors, PCs, etc.); fluctuations in exchange...

  • Page 4
    Financial Highlights Fujitsu Limited and Consolidated Subsidiaries Yen U.S. Dollars (millions) (thousands) (excluding per share data, D/E ratio, number of issued shares, and number of employees) Years ended March 31 2003 2004 2005 2006 2007 2007 Net sales Domestic Overseas Operating income ...

  • Page 5
    ...,682 (Years ended March 31) 2005 2006 2007 (As of March 31) â- Interest Coverage Ratio (Times) â- Return on Equity (%) 2003 2004 2005 2006 2007 3.9 13.0 15.2 2003 2004 2005 -15.7 6.5 3.8 7.7 21.3 22.2 (Years ended March 31) 2006 2007 10.9 (Years ended March 31) Annual Report 2007 3

  • Page 6
    ... technology can now be found in every corner of society, making life more convenient and driving far-reaching change. IT systems are becoming increasingly important as the foundations of business and society itself. As a consequence, IT is now one of the key elements of today's corporate and social...

  • Page 7
    ...of our new mediumterm strategic plan. By tackling a variety of issues under this three-year management plan, we will strive to make this a transformational year for Fujitsu in order to boost earnings and growth and further increase corporate value. Hiroaki Kurokawa President Annual Report 2007 5

  • Page 8
    ...last three years, we have worked to regain our customers' trust. Building on this progress, we are now aiming to make the next three years a period of higher growth and returns. Fiscal 2007 must therefore be a transformational year for Fujitsu. This feature highlights some of the initiatives we will...

  • Page 9
    ... sales and earnings. Looking at our sales performance, while certain areas of the electronic devices market slowed, sales were favorable overall, as sales of services and UNIX servers grew strongly overseas and unit shipments of hard disk drives (HDDs) reached an all-time high. Annual Report 2007...

  • Page 10
    ...rate of sales growth. Global price competition intensified, especially in product areas, and although we worked to cut costs, we were not able to fully offset the drop in prices. Other factors impacting profitability included higher expenses related to new business acquisitions and other initiatives...

  • Page 11
    ... of business development, we plan to focus on the services business to drive earnings growth in our mainstay Technology Solutions segment. We will also build an operating structure to ensure that higher sales in our HDD and device businesses translate into stronger earnings. Annual Report 2007 9

  • Page 12
    ...collaboration between sales and product development functions in order to create competitive product and service offerings that will allow us to increase market share and raise profitability. Second, we will follow the principle of cash flow-conscious management to encourage each Fujitsu business to...

  • Page 13
    ...Service Offerings Enhancing collaboration between sales and product development • Focus management efforts on creating competitive product and service offerings that can drive up market share and profits • Align organization and processes to create product and service offerings from the customer...

  • Page 14
    ... words, systems that are easier to deploy and manage and will therefore enable us to increase sales volumes. In regard to the challenge of empowering our people, a key theme will be to develop people capable of supporting our field innovation approach by helping our employees acquire more specialist...

  • Page 15
    ...the ratio of overseas sales to consolidated net sales from 36% to more than 40%. How will you do this? We plan to further grow our business overseas by developing strategies tailored to each market and building on the Fujitsu Group's capabilities. In Europe, the Middle East and Africa (EMEA), we are...

  • Page 16
    ...regional goal: 8% growth/year FS sales: (FY05) £2,294M�(FY07) £2,700M (About Â¥600.0 billion) â- Fujitsu Services: Build on strength as top-tier services company for UK government/public sector • Work to expand business in continental Europe and with private-sector clients • Acquired TDS of...

  • Page 17
    ...the customer's perspective. This, I believe, is one way we can leverage our unique strengths as a company. What is Fujitsu's policy on returning profits to shareholders? I believe we can boost shareholder value by delivering sustained growth. Our basic policy on the payment of dividends is to offer...

  • Page 18
    ... 124.6 130.7 153.0 163.6 57.1% 2006 2007 5.2% Ubiquitous Product Solutions Emphasizing speed-to-market and price-competitiveness through highly efficient development and manufacturing activities, our PCs, mobile phones, and hard disk drives are vital to the realization of a ubiquitous networked...

  • Page 19
    ... (ATMs, POS systems) Left: SPARC Enterprise UNIX server Center: FLASHWAVE optical transmission system Right: Control room of the Fujitsu Tatebayashi System Center, one of Japan's largest IT outsourcing facilities. PCs, mobile phones, storage equipment (hard disk drives, magneto-optical disk drives...

  • Page 20
    ... Fujitsu Opens Platform Solution Center in Brazil (May 30, 2007) â- Initiatives Going Forward System Products In the domestic server market, we expect challenging conditions to remain due to intensifying price competition and other factors. Overseas, the market is expected to remain firm. Customer...

  • Page 21
    ...order to develop more competitive offerings that customers and sales channels will support. Network Products The shift to NGN is under way both in Japan and overseas, and competition is intensifying. Against this backdrop, we are overhauling our organizational structure to enhance our responsiveness...

  • Page 22
    ... services sales were also firm. Overseas, we reported a significant 23.9% increase in sales compared to a year earlier. This reflected growth in our services business in North America through the acquisition of new companies, and continued strong growth in our outsourcing business in the UK...

  • Page 23
    ... mobile phones to the screen, the display shows personalized recommendations for restaurants and products, as well as store locations. UBWALL has already been adopted by some local governments, financial services providers and numerous other customers. • Fujitsu Services Signs Contract to Acquire...

  • Page 24
    ...â„¢ operating system and competition intensified in the business-use market. Sales of mobile phones, however, were firm. Hard disk drives (HDDs) also saw strong sales, with record shipments of 2.5-inch drives for notebook PCs and 3.5-inch models for servers. Overall, the Ubiquitous Product Solutions...

  • Page 25
    ... Disk Drives (HDDs) Our HDDs are used in PCs, servers, storage systems and other products. We supply 3.5-inch models mainly for servers, and 2.5-inch products for mobile devices. By adopting perpendicular magnetic recording technology, we plan to boost capacity and reliability further. FMV-BIBLO...

  • Page 26
    ... (March 30, 2007) • Fujitsu Semiconductor Technologies Begins Operations (March 30, 2007) • Fujitsu Announces Mobile WiMAX SoC Performance and Delivery Schedule (May 21, 2007) • Fujitsu Devices Inc. to Become a Wholly Owned Subsidiary of Fujitsu Limited through an Exchange of Shares (May 24...

  • Page 27
    ...-related technologies to reinforce our "Fujitsu for Image Processing" brand reputation. Moreover, to ensure the timely provision of optimal solutions for customers, we will continue to push forward the realignment of our organizational structure, including Group companies. Our goal will be to build...

  • Page 28
    ...are being replaced by "Quick Navi" service booths that feature automatic teller machines (ATMs) and waist-height desks where Resona employees stand and deal directly with customers. By eliminating the need for customers to go to teller windows to fill in forms to deposit or withdraw money, Resona is...

  • Page 29
    ... (North America, Europe, Asia Pacific and Japan). As part of a global growth initiative, the company's goal was to achieve a consistent IT solution across all geographies. Fujitsu GlobalSTORE retail POS application is a key element of its global store technology platform. Godiva selected GlobalSTORE...

  • Page 30
    ...Sales â- Net Sales to Unaffiliated Customers in EMEA (Billions of Yen) 15.6% 2004 2005 2006 2007 Years ended March 31 605.0 633.2 689.7 795.8 Deploying a pioneering palm vein-based biometric ID solution at a primary school in Scotland Todholm Primary School Delivering desktop managed services...

  • Page 31
    ... of Yarra Valley Water's core enterprise applications, including its customer information and billing system, as well as voice communications. In this way, we are helping Yarra Valley Water to provide services to Victoria's citizens that win an even higher level of trust. Annual Report 2007 29

  • Page 32
    ...language service, and this new technology will now allow clients to conduct global web marketing analysis of company and product reviews in all three languages. (2) Technology that enhances server system performance The world's first single-chip 10GbE switch LSI We developed a new switching device...

  • Page 33
    ..., electronic devices and other areas. â- Key research themes in fiscal 2007 (1) Next-generation IT service technologies (2) Next-generation server technologies (3) Next-generation network technologies (4) Technologies to create distinctive systems and devices (new terminals, imaging, electronic...

  • Page 34
    ... Corporation Hitachi, Ltd. Toshiba Corporation Micron Technology, Inc. Fujitsu Limited Microsoft Corporation Seiko Epson Corporation General Electric Company Fuji Photo Film Co., Ltd. Infineon Technologies AG Koninklijke Philips Electronics N.V. Texas Instruments Incorporated Siemens AG Honda Motor...

  • Page 35
    ...Launch of media-mix sales promotion service using FPcode by FM-Yamaguchi radio station and other clients (February 2007) IP-9500 HDTV encoder/decoder â- Registered Patents by Business Segment (Fiscal 2006) R&D and Corporate Technology Solutions (3) Licensing 28% 35% Total 90,800 18% 19% Device...

  • Page 36
    ... a desire to immediately apply what they had learned in their everyday lives. Scholarship students on the JAIMS MBA program Participants in tree-planting activities at the Fujitsu Group Malaysia Eco-Forest Park One of the hands-on lectures given by Fujitsu employees at schools 34 Fujitsu Limited

  • Page 37
    ... had launched IT product recycling in the U.S., Australia, Canada, the Philippines, and Singapore, with plans to introduce this service in Thailand in the near future. By building recycling systems globally in this way, we are striving to help realize a recycling-oriented society. Bio-based Plastic...

  • Page 38
    ... Ito President and Representative Director Fuji Electric Holdings Co., Ltd. Haruki Okada* Corporate First Senior Vice President * Concurrently serve as corporate executive officers Statutory Auditors â- Standing Auditors Corporate Executive Officers â- Corporate First Senior Vice Presidents...

  • Page 39
    ... Status of Corporate Governance-related Policy Implementation (I) Management Control Organization with Respect to Business Decisions, Operational Execution and Oversight, and Other Corporate Governance Structures (i) Institutional Structure and Internal Control The Board of Directors is responsible...

  • Page 40
    ... from two years to one year under a resolution adopted at the Annual Shareholders' Meeting convened on June 23, 2006. The Company's corporate governance structure as of March 31, 2007 is shown in the diagram on the previous page. Directors, as stipulated in the Articles of Incorporation. This is to...

  • Page 41
    ..., and monitoring systems to promote compliance by the Fujitsu Group as a whole. r In the event that senior managers or employees become aware of the possibility of a serious operations-related compliance violation, they are to immediately inform the Board of Directors and/or the Board of Statutory...

  • Page 42
    ... internal audits of the entire Fujitsu Group. Findings shall be regularly reported to the boards of directors and/or statutory auditors of Fujitsu Limited and the Group company concerned. Important matters relating to Fujitsu Group companies are reported to Fujitsu's Board of Directors and Board...

  • Page 43
    ...trust account assets for employee retirement benefits. Additionally, as of June 29, 2007, an advisor to Fujitsu Limited was serving as a director of Fuji Electric Holdings, in which Fujitsu has a 9.96% stake. Fujitsu Limited and Fuji Electric Holdings have a business relationship. Annual Report 2007...

  • Page 44
    ... meeting the legal definition of an outside director under Japan's Company Law, Fujitsu Limited director Hiroshi Oura serves as Senior Executive Advisor of Advantest Corporation, in which Fujitsu holds a 10.09% stake through trust account assets for employee retirement benefits. As of June 29, 2007...

  • Page 45
    ...the 106th Annual Shareholders' Meeting on June 23, 2006, the upper limit of annual remuneration for all auditors was set at ¥100 million. 3. No bonuses were paid to directors or auditors during the fiscal year under review. 4. At the 107th Annual Shareholders' Meeting on June 22, 2007, a resolution...

  • Page 46
    ... or a reduction in pension assets, exposing the Group to the risk of higher losses. The Fujitsu Group provides IT products and services, telecommunications infrastructure equipment, as well as semiconductors, hard disk drives (HDDs) and other components, to corporate and institutional clients and...

  • Page 47
    ... services employ other companies' patents, technologies, software, and trademarks with the consent of their owners. However, there is no guarantee that other companies will continue to grant or license the right to use their property under terms acceptable to the Fujitsu Group. Annual Report 2007...

  • Page 48
    ... but can offer no guarantee of its ability to always achieve every desired outcome in the course of executing business operations. Some of the specific risks faced in this respect are detailed below. 1) Deficiencies or Flaws in Products and Services Quality is a core value of the Fujitsu Group. We...

  • Page 49
    ... of electricity or water as a result of earthquakes or other natural disasters and accidents. Such occurrences could interrupt shipments to customers or disrupt shipments of parts for the Group's internal use, thereby affecting factory production at other Group business sites. Semiconductor fabs and...

  • Page 50
    ... ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated Statements of Changes in Net Assets ...Consolidated Statements of Cash Flows ...Notes to Consolidated Financial Statements ...Independent Auditors' Report ... 49 50 58 60 61 62 63 94 48 Fujitsu Limited

  • Page 51
    ...times) Free cash flow R&D expenses Capital expenditure Number of employees Net sales by business segment (excluding intersegment sales): Technology Solutions Ubiquitous Product Solutions Device Solutions Other Operations Total Net sales by customers' geographic location: Japan EMEA The Americas APAC...

  • Page 52
    ... global price competition impacted HDD, UNIX server, optical transmission system, PC and other product businesses. Meanwhile, SG&A expenses increased by ¥49.9 billion. This reflected major expansion in our services business, including acquisitions in North America and the 50 Fujitsu Limited

  • Page 53
    ... 2005. In Japan, despite strong sales in the Services sub-segment, sluggish sales of mobile phone base stations and server-related products led to a 0.2% decline for the segment as a whole. Overseas sales increased by 19.9% as a result of continued strength in outsourcing and other services as well...

  • Page 54
    ... affected by postponed purchases prior to the release of Windows Vista and corporate PC sales were impacted by intensified price competition. Overseas sales increased by 13.7%, bolstered by record-high shipment volumes of HDDs for notebook PCs and servers. Operating income for Ubiquitous Product...

  • Page 55
    ... under review. Japan Net sales were ¥4,077.1 billion (US$34,552 million), an increase of 3.4% over fiscal 2005. Lower sales in System Platforms, which covers servers and network equipment, were offset by favorable performance in Services, as well as mobile phones, advanced technology logic devices...

  • Page 56
    ... for this region. APAC & China â- For Reference: Net Sales by Customers' Geographic Location Japan EMEA The Americas APAC & China (Â¥ Billions) 2003 2004 2005 2006 2007 4,617.5 4,766.8 4,762.7 4,791.4 5,100.1 Favorable performance in HDDs and PCs contributed to net sales of Â¥807.1 billion...

  • Page 57
    .... Net cash used in investing activities was ¥151.0 billion (US$1,280 million). Although outflows increased due to capital expenditures primarily for the increase in production capacity at the Mie Plant, as a result of the impact of the sales of shares in Fanuc Ltd., NIFTY Corporation and Spansion...

  • Page 58
    ...Japan conform to those of their respective countries. The preparation of the consolidated financial statements requires 4. Capital Expenditure In fiscal 2006, capital expenditure, which was concentrated on growth fields such as logic LSI technologies and outsourcing services, as well as on building...

  • Page 59
    ...-line method over employees' average remaining service period. Furthermore, revisions to accounting standards in countries where overseas subsidiaries are located and in Japan could potentially impact the Company's retirement benefit costs and obligations, as well as net assets. Provision for...

  • Page 60
    ... Financial Statements are an integral part of these statements. (*) With respect to the presentation of impaired assets on the consolidated balance sheets, the acquisition costs of assets are presented net of impairment loss. (**) "Net assets" at March 31, 2007 is presented based on a new accounting...

  • Page 61
    ...1,831,847 8,266,441 Net assets Shareholders' equity: Common stock (Note 12) Authorized-5,000,000,000 shares Issued 2006-2,070,018,213 shares 2007-2,070,018,213 shares Capital surplus Retained earnings (Deficit) Treasury stock, at cost Total shareholders' equity Valuation and translation adjustments...

  • Page 62
    Consolidated Statements of Operations Fujitsu Limited and Consolidated Subsidiaries U.S. Dollars (thousands) (Note 3) Yen (millions) Years ended March 31 2005 2006 2007 2007 Net sales Operating costs and expenses: Cost of sales Selling, general and administrative expenses (Note 18) Operating ...

  • Page 63
    ...term: Cash dividends from retained earnings Bonuses to directors and statutory auditors Net income Decrease as a result of changes in accounting principles and practices in UK subsidiaries (Note 1) Increase as a result of business acquisition Purchase of treasury stocks Sales of treasury stocks Gain...

  • Page 64
    ...(312,712) (1,991,127) 37,492 230,111 3,566,898 5,576 - $ 3,802,585 $ 636,263 - The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. (*) This is referred to as "free cash flow" in Management's Discussion and Analysis of Operations. 62 Fujitsu Limited

  • Page 65
    ...set forth in Note 19. For the year ended March 31, 2006, Fujitsu Telecommunications Europe Limited, another UK subsidiary, recognized pension obligation which had not been recognized before in conformity with the new UK accounting standard for the retirement benefits (Financial Reporting Standard 17...

  • Page 66
    ... from sales of IT systems and products excluding customized software under development contracts (the "customized software") is recognized upon acceptance by the customers, whereas, revenue from sales of personal computers, other equipment and electronic devices is recognized when the products are...

  • Page 67
    ... increased sales of products under warranty and the increase in warranty related costs. Prior to and for the year ended March 31, 2005, the Group had charged costs for repair or exchange under warranty to selling, general and administrative expenses at the time the warranty Annual Report 2007 65

  • Page 68
    ... financial statements and the principles of consolidation and in Note 10. (m) Provision for loss on repurchase of computers Certain computers manufactured by the Group are sold to Japan Electronic Computer Co., Ltd. ("JECC") and other leasing companies for leasing to ultimate users under contracts...

  • Page 69
    ...GAAP of foreign subsidiaries, unless the difference in accounting principles and practices will lead to unreasonable consequences. The consolidated subsidiaries within the Group outside Japan have adopted the accounting principles and practices in their respective countries as Annual Report 2007 67

  • Page 70
    ... in Japan maintain their books of account in yen. The U.S. dollar amounts included in the accompanying consolidated financial statements and the notes thereto represent the arithmetic results of translating yen into U.S. dollars at ¥118 = US$1, the approximate exchange rate at March 31, 2007. The...

  • Page 71
    ... of Advantest Corporation due to sales of its shares and the expansion of the net loss of Spansion Inc. Net income (loss) for the year ended March 31, 2007 improved mainly due to the deconsolidation of Spansion Inc. The carrying and market values of the shares of the publicly listed equity method...

  • Page 72
    ... influence over JECC's affairs. JECC's principal business was the leasing of computers and peripherals purchased from its six shareholders. At March 31, 2006 and 2007, JECC's issued share capital was ¥65,700 million ($556,780 thousand). Its net sales for the years ended March 31, 2005, 2006 and...

  • Page 73
    ...40,436 Long-term debt (including current portion) Yen (millions) U.S. Dollars (thousands) At March 31 2006 2007 2007 a) Long-term borrowings Long-term borrowings, principally from banks and insurance companies, due 2006 to 2020 with the weighted average interest rate of 1.85% at March 31, 2006...

  • Page 74
    ...2006 2007 2007 b) Bonds and notes Bonds and notes issued by the Company: Zero coupon unsecured convertible bonds due 2009 2.875% unsecured bonds due 2006 3.15% unsecured bonds due 2009 2.3% unsecured bonds due 2007 2.... ¥745,817 226,250 519,567 $6,320,483 1,917,373 4,403,110 72 Fujitsu Limited

  • Page 75
    ...Yen (millions) U.S. Dollars (thousands) At March 31 2006 2007 2007 Property, plant and equipment, net ¥2,790 ¥2,765 $23,432 As is customary in Japan, substantially all loans from banks (including short-term loans) are made under general agreements which provide that, at the request of the...

  • Page 76
    ...of service, basic salary as of the retirement date and the number of years of participation in the Plan. The contributions of the Company and the subsidiaries covered by the Plan and their employees are made to the Fujitsu Corporate Pension Fund which is an external organization. The Fujitsu Welfare...

  • Page 77
    As a result of pension system revisions, Fujitsu Corporate Pension Fund which the Company and certain consolidated subsidiaries participate in reported unrecognized prior service cost (reduced obligation) at September 1, 2005. Components of net periodic benefit cost Yen (millions) U.S. Dollars (...

  • Page 78
    ... 31, 2006, Fujitsu Telecommunications Europe Limited, a consolidated subsidiary in the UK, recognized the full value of the unrecognized obligation immediately as accrued retirement benefits, in accordance with a new UK accounting standard for the retirement benefits (Financial Reporting Standard 17...

  • Page 79
    ...number of different income taxes. The statutory tax rates in the aggregate in Japan were approximately 40.6% for the years ended March 31, 2005, 2006 and 2007...net gain on sale of investments in subsidiaries and affiliated companies... in consolidated subsidiaries outside Japan. Annual Report 2007 77

  • Page 80
    ... Provision for product warranties Intercompany profit on inventory and property, plant and equipment Other Gross deferred tax assets Less: Valuation allowance Total deferred tax assets Deferred tax liabilities: Gains from establishment of stock holding trust for retirement benefit plan Unrealized...

  • Page 81
    ... reflected the issuance of shares in October 2004 by which the Company turned Fujitsu Support and Service Inc. into a wholly owned subsidiary. 13. Commitments and Contingent Liabilities Commitments outstanding at March 31, 2007 for purchases of property, plant and equipment were approximately ¥21...

  • Page 82
    ... when the relating hedged items are reflected in income. Fair Value of Derivative Financial Instruments: At March 31, 2006 and 2007, all derivative financial instruments were stated at fair market value and recorded on the balance sheets. 15. Leases The following is a summary of acquisition cost...

  • Page 83
    ... 17. Earnings Per Share Yen (millions) U.S. Dollars (thousands) Years ended March 31 2005 2006 2007 2007 Net income Bonuses to directors and statutory auditors from retained earnings (deficit) Net income for common stock shareholders Effect of dilutive securities Diluted net income ¥31,907...

  • Page 84
    ... sales of marketable securities Restructuring charges Loss on change in interest Provision for prior product warranties Real estate valuation losses Amortization of unrecognized obligation for retirement benefits Foreign exchange gains (losses), net Loss on disposal of property, plant and equipment...

  • Page 85
    ...for the year ended March 31, 2006 is related to provision to cover warranty-related costs for products sold in prior fiscal years. Real estate valuation losses Real estate valuation losses for the year ended March 31, 2005 related to the devaluation on idle property holdings. Annual Report 2007 83

  • Page 86
    ... in Japan, prior service cost in Japan, which resulted from pension system revisions, and net obligation at transition for the consolidated subsidiaries in Japan. 19. Segment Information Business Segment Information Yen (millions) Technology Solutions Ubiquitous Product Solutions Device Solutions...

  • Page 87
    ... and monitoring services), information system and network construction, custom terminal installation (ATMs, POS systems, etc) (2) Ubiquitous Product Solutions ...Personal computers, mobile phones, HDD (hard disk drives), magneto-optical drives, optical transceiver modules (3) Device Solutions ...LSI...

  • Page 88
    ... Years ended March 31 Japan EMEA The Americas APAC & China Elimination & Corporate Consolidated 2005 Sales Unaffiliated customers Intersegment Total sales Operating costs and expenses Operating income (loss) Total assets 2006 Sales Unaffiliated customers Intersegment Total sales Operating costs and...

  • Page 89
    ...geographic segments other than Japan are as follows: (1) EMEA (Europe, Middle East and Africa) ...U.K., Spain, Germany, Finland, the Netherlands (2) The Americas ...U.S.A., Canada (3) APAC & China (APAC = Asia-Pacific) ...Australia, Thailand, Vietnam, the Philippines, Singapore, Korea, Taiwan, China...

  • Page 90
    ... This information is required by the Securities and Exchange Law of Japan. For the year ended March 31, 2007, the Company entered into the following transactions with its related party: •Related party: Fujitsu Leasing Co., Ltd. Common stock-¥1,000 million ($8,475 thousand) Breakdown of the...

  • Page 91
    ... 31 2007 2007 Exercised price ¥3,563 $30.19

  • Page 92
    ..., Fujitsu Services Holdings PLC, a UK subsidiary of the Company, launched the tender offer for GFI. (2) Entity to be purchased GFI Informatique SA; Headquarters: Paris; listed on the Euronext Paris; Approximately 8,500 employees at December 31, 2006 IT services deployment in Europe, mainly France...

  • Page 93
    ... amount of net loss after recognizing a devaluation loss mainly on the shares of its UK subsidiary, Fujitsu Services Holdings PLC ("FS") for the year ended March 31, 2007. The objectives for the items stated above are to eliminate the accumulated deficit in the nonconsolidated accounts that resulted...

  • Page 94
    ... of customer needs. (2) Method and content of share exchange q Method of share exchange Based on the share exchange agreements signed on May 24, 2007, the Company will distribute its common stock to shareholders of Fujitsu Access Limited, Fujitsu Devices Inc. and Fujitsu Wireless Systems Limited in...

  • Page 95
    ...the 16,169,940 shares of Fujitsu Devices Inc. common stock and the 220,697 shares of Fujitsu Wireless Systems Limited common stock that the Company holds are exempt from this share exchange. The Company will exchange a total of 34,319,427 shares of its common stock with the shareholders of the three...

  • Page 96
    Independent Auditors' Report 94 Fujitsu Limited

  • Page 97
    ... Headquarters â- Stock Exchange Listings Unlisted Fujitsu Siemens Computers (Holding) B.V. *Spansion Inc. is no longer classified as an equity-method affiliate following the partial sale of shares in November 2006. Shiodome City Center Japan: Tokyo, Osaka, Nagoya 1-5-2 Higashi-Shimbashi Overseas...

  • Page 98
    FUJITSU LIMITED Shiodome City Center, 1-5-2 Higashi-Shimbashi Minato-ku, Tokyo 105-7123, JAPAN Tel. +81-3-6252-2220 ©2007 FUJITSU LIMITED Printed in Japan BA0029-2AP This report uses paper from FSC-certified sources and is printed using VOC-free vegetable oil-based ink and non-water printing ...