Fujitsu 2007 Annual Report Download - page 56

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EMEA
Net sales were ¥736.3 billion (US$6,240 million). Continued strong
performance in outsourcing services in the UK and other favorable busi-
ness trends resulted in a 16.4% increase in sales over fiscal 2005. Operat-
ing income was ¥24.1 billion (US$205 million), up ¥1.1 billion
compared to the previous fiscal year.
The Americas
The expansion of our North American services business through
aggressive acquisitions and the strong performance of UNIX servers and
HDDs for servers contributed to net sales of ¥442.3 billion (US$3,749
million), up 21.7% over fiscal 2005. However, operating income was ¥8.4
billion (US$72 million), a ¥5.1 billion decrease compared with last fiscal
year. In addition to the impact of intensified price competition for UNIX
servers, sales were sluggish prior to the release of new products in the
second half of the year. In addition, a delay in the recovery of our retail
solutions and optical transmission systems businesses had an adverse
effect on operating income for this region.
APAC & China
Favorable performance in HDDs and PCs contributed to net sales of
¥807.1 billion (US$6,840 million), a 12.3% increase over the same
period last year. Due to intensified global price competition, operating
income was ¥11.6 billion (US$99 million), a decline of ¥3.2 billion
compared to fiscal 2005.
Net Sales and Operating Income by Geographic Segment
(including intersegment)
(¥ Billions)
Increase
(Decrease)
Years ended March 31 2006 2007 Rate (%)
Net sales
Japan . . . . . . . . . . . . . . . . . . . ¥3,944.4 ¥4,077.1 3.4%
EMEA . . . . . . . . . . . . . . . . . . . 632.5 736.3 16.4
The Americas . . . . . . . . . . . . . 363.4 442.3 21.7
APAC & China . . . . . . . . . . . . 718.8 807.1 12.3
Intersegment elimination . . . . (867.8) (962.8)
Consolidated net sales . . . . . . ¥4,791.4 ¥5,100.1 6.4%
Increase
Years ended March 31 2006 2007 (Decrease)
Operating income (loss)
Japan . . . . . . . . . . . . . . . . . . . ¥171.1 ¥191.8 ¥20.7
EMEA . . . . . . . . . . . . . . . . . . . 22.9 24.1 1.1
The Americas . . . . . . . . . . . . . 13.5 8.4 (5.1)
APAC & China . . . . . . . . . . . . 14.9 11.6 (3.2)
Unallocated operating costs
and expenses/
intersegment elimination . . . . (41.1) (54.0) (12.9)
Consolidated operating income
. . ¥181.4 ¥182.0 ¥ 0.6
■ For Reference: Net Sales by Customers’
Geographic Location
Japan The Americas
EMEA APAC & China
(¥ Billions)
2003
2004
2005
2006
2007
4,791.4
4,762.7
4,766.8
4,617.5
5,100.1
(Years ended March 31)
3. Capital Resources and Liquidity
Improvement in Financial Condition
In the year under review, we continued efforts to improve the sound-
ness of our financial position. By recording more than ¥100.0 billion in
net income for fiscal 2006, we achieved a marked improvement in the
Company’s financial condition, including a 0.5 percentage point increase
in the owners’ equity ratio (net assets less minority interests to total assets)
to 24.6%. In addition, consolidated retained earnings were ¥54.3 billion
(US$460 million), reversing a run of negative retained earnings that had
continued since fiscal 2002.
As of March 31, 2007, the balance of interest-bearing loans was ¥745.8
billion (US$6,320 million). The balance of net interest-bearing loans
after deducting cash and time deposits was ¥300.8 billion (US$2,550
million). As a result, the D/E ratio was reduced to 0.77 times, below our
medium-term goal of 1.0, and the net D/E ratio fell to 0.31 times.
54 Fujitsu Limited