Fujitsu 2007 Annual Report Download - page 22

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Home-use Healthcare Support System
A remote health management and medical support system for the elderly.
The system, which connects users with a central care center via a network,
allows healthcare professionals to assess vital health signs and provide advice
via a video phone.
Technology Solutions—Services
2004
2005
2006
2007
Solutions/SI
Infrastructure Services
Others
2,199.4
2,200.4
2,266.2
2,453.2
197.3
1,029.0 938.0
232.3
1,002.6 976.1
221.5
1,020.4 1,037.2
208.5
1,091.0 1,164.8
Sub-segment Sales* by Main Product
Years ended March 31
* Including intersegment sales
(Billions of Yen)
Net Sales Operating Income R&D Expenses* Capital Expenditure
*
2,453.2 (8.3%) 156.1 (21.5%) 130.7 (–0.7%) 91.3 (–1.9%)
* Figures are for the entire Technology Solutions segment
Fiscal 2006 Performance (Year-on-Year Comparison) (¥ billion)
Fiscal 2006 Performance Overview
In Japan, we focused on boosting earnings by reinforcing project
risk management and creating mechanisms to increase the effi-
ciency of system development. We also strengthened our opera-
tional services and packaged solutions, areas that are expected to
generate stable earnings going forward. Overseas, we actively
rolled out our strategy of services business development tailored
to the requirements of different regional markets. In Europe, cen-
tered on UK subsidiary Fujitsu Services, we worked to expand
business not only for government IT outsourcing projects but
also projects in the commercial sector, and at the same time
enhance our ability to supply systems to customers across the
European continent. In North America, meanwhile, we worked
to strengthen service provision through acquisitions and alliances.
In Japan, sales rose 1.2% year on year as systems integration
business expanded for banks, insurance companies, securities firms
and other clients in the financial field, as well as for automakers
and other manufacturers. Outsourcing 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 com-
panies, and continued strong growth in our outsourcing business
in the UK. As a result, the Services sub-segment posted an overall
increase in sales of 8.3%, to ¥2,453.2 billion (US$20,790 million).
Despite a delay in the recovery of our retailing solutions busi-
ness in North America and heavier upfront strategic expendi-
tures in our systems integration business in Japan, operating
income surged 21.5% year on year to ¥156.1 billion (US$1,323
million). This rise reflected the effect of higher sales in the ser-
vices business both in Japan and overseas, as well as stronger risk
management and improved project profitability due to greater
efficiency in system development.
Announcement Highlights
•Yarra Valley Water Selects Fujitsu as Strategic IT Outsourcing
Partner in AUS$21 Million Agreement (August 15, 2006)
•Fujitsu Remains at the Top in Japanese IT Outsourcing Rev-
enue Ranking for Two Consecutive Years (September 4, 2006)
•Fujitsu and SAP AG Strenghen Services Partnership (October
5, 2006)
20 Fujitsu Limited