Fujitsu 2008 Annual Report Download - page 81

2004 2005 2006 2007 2008
0
2,000
4,000
6,000
4,766.8 4,762.7 4,791.4 5,100.1 5,330.8
NET SALES
(¥ Billions)
(Years ended March 31)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS
The following section, Management’s Discussion and Analysis of
Operations, provides an overview of the consolidated financial
statements of Fujitsu Limited (the “Company”) and its consoli-
dated subsidiaries (together, the “Group”) for the year ended
March 31, 2008 (fiscal 2007). Forward-looking statements in this
section are based on management’s understanding and best
judgment as of March 31, 2008.
1. Analysis of Results
Business Environment
In fiscal 2007, ended March 31, 2008, the business environment
in which the Fujitsu Group operates remained healthy, driven
largely by economic growth in Asia, centering on China and
India. This was despite economic slowdown in the United States,
stemming from rising raw materials and energy prices and finan-
cial instability caused by the subprime mortgage crisis, as well as
growing uncertainty regarding the European economy.
The Japanese economy showed some signs of weakness
resulting from sharp currency swings in the second half of the
fiscal year, soaring prices for raw materials, sluggish consumer
demand, and falling stock prices. Overall, however, the domestic
economy was firm, supported by moderate recovery in demand
in the corporate sector, driven by exports to rapidly growing
emerging markets.
With respect to IT investments, economic slowdown in the
United States and other factors provided growing cause for con-
cern. On the whole, however, growth-oriented investments
remained solid as companies strove to expand their global
operations and strengthen their competitiveness. This was
against a backdrop of rising demand from companies establish-
ing compliance and internal control systems, as well as ongoing
improvements in corporate earnings and financial positions.
Fiscal 2007 was the first year of the Group’s new medium-
term strategic plan, designed to boost earnings and growth.
Based on our “Field Innovation” approach, we are shifting our
emphasis from “IT solutions” to “business solutions” which call for
a deeper involvement in the businesses of our customers. We are
also pursuing Group-wide organizational and structural reforms
and accelerating the globalization of our operations. The Fujitsu
Group will implement Field Innovation for our own operations
as well as to improve our customers’ businesses, and through
our constant pursuit of innovation, we aim to contribute to the
creation of a networked society that is rewarding and secure,
bringing about a prosperous future that fulfills the dreams of
people throughout the world.
Net Sales
In fiscal 2007, consolidated net sales amounted to ¥5,330.8 billion
(US$53,308 million), an increase of 4.5% from the previous fiscal
year. All business segments posted higher sales, led by strong
results in the Services business and solid demand for PCs and
mobile phones. Sales in Japan grew 4.0% year-on-year. Although
sales of mobile phone base stations and standard technology
logic devices were sluggish, sales in the Services business were
strong, benefiting from increased sales of systems integration
services, particularly to the financial services sector, as well as
outsourcing services. Moreover, sales of PCs, mobile phones, and
90nm advanced logic products also increased. Sales outside of
Japan climbed 5.4%. In the Services business, overseas sales were
boosted by acquisitions and strong performances by existing
businesses. Sales of UNIX servers, optical transmission systems,
and PCs outside Japan were also up.
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ANNUAL REPORT 2008FUJITSU LIMITED