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Our medium-term goal for fiscal 2009 is to realize an operating income margin
of more than 5%. Although some issues remain, we made an impressive start
towards achieving this target. Our most important accomplishment in fiscal 2007
may be the earnings stability of Fujitsu’s mainstay services business.
I think that the fact that our services business now generates stable profits was the most important
development for Fujitsu in fiscal 2007. A number of factors enabled this result, most notably the
extensive risk management we were able to implement in system integration operations. Of
course, growth in services in areas such as security and internal control systems, as well as out-
sourcing, network and maintenance services, was also very important.
I think the stable earnings from services resulted from business process reforms and invest-
ments to cultivate the workforce. The benefits of initiatives such as these tend not to be imme-
diately apparent. But I think our results for fiscal 2007 testify to the fact that several years’ worth
of effort finally started to pay off. Improving the services business has heightened its appeal in
the eyes of our customers. This improvement, in turn, has also had a positive impact on our server
business and other operations.
Of course, the fact that we achieved a structure for generating profits amid a severe competi-
tive environment played a major role in performance for the year. This reflected ongoing improve-
ments at production sites in the mobile phone and PC businesses due to our adoption of the
Toyota Production System (TPS), as well as benefits gained from development-side innovations.
Our operating income margin, meanwhile, improved by 0.2 of a percentage point from 3.6%
last year to 3.8%. This was a robust start to meeting our medium-term goal of an operating
income margin of over 5% in the fiscal year ending March 31, 2010. With our goal in sight we
have no intention of losing momentum in the upcoming fiscal year, and will push ahead boldly
to our objective.
Q.4
How would you rate
Fujitsu’s performance
in fiscal 2007?
A.4
MEDIUMTERM TARGETS FY 20072009
FY 2006
FY 2007
Medium-term
Targets (FY 2009)
Operating income
margin
Consolidated 3.6% 3.8% Over 5%
Technology Solutions 5.2% 5.5% Over 7%
Ratio of sales outside Japan 35.8% 36.1% Over 40%
Monthly inventory turnover 0.93 times 1.03 times* 2 times*
*Set as medium- to long-term target level
(Years ended March 31)
009
ANNUAL REPORT 2008FUJITSU LIMITED
A CONVERSATION WITH THE PRESIDENT