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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
Japan The Americas
EMEA APAC & China
FOR REFERENCE:
NET SALES BY CUSTOMERS’
GEOGRAPHIC LOCATION
(¥ Billions)
(Years ended March 31)
Net Sales and Operating Income by
Geographic Segment (including intersegment sales) (¥ Billions)
Years ended March 31
2007
2008
Increase
Rate (%)
Net sales
Japan .......................... ¥4,077.1 ¥4,229.7 3.7%
EMEA .......................... 736.3 769.9 4.6
The Americas .................. 442.3 469.9 6.3
APAC & China .................. 807.1 855.0 5.9
Intersegment elimination ...... (962.8) (993.8)
Consolidated net sales ......... ¥5,100.1 ¥5,330.8 4.5%
Years ended March 31
2007
2008
Increase
(Decrease)
Operating income (loss)
Japan .......................... ¥191.8 ¥240.9 ¥49.0
EMEA .......................... 24.1 0.7 (23.4)
The Americas .................. 8.4 9.2 0.7
APAC & China .................. 11.6 14.8 3.1
Unallocated operating
costs and expenses/
intersegment elimination .....
(54.0)
(60.7)
(6.7)
Consolidated operating income . . ¥182.0 ¥204.9 ¥22.9
3. Capital Resources and Liquidity
Improvement in Financial Condition
In fiscal 2007, the Fujitsu Group continued to improve the sound-
ness of its financial position, including by bolstering the profit-
ability of its core businesses and boosting cash flows through
more efficient deployment of working capital.
The total asset turnover ratio for the year was 1.37 times, up
0.05 of a point, and the monthly inventory turnover rate was 1.03
times, an improvement of 0.10 of a point. Free cash flow—the sum
of cash flows from operating and investing activities—was positive
¥38.1 billion (US$381 million). (Excluding the impact of the previ-
ous fiscal year-end falling on a business holiday, free cash flow
would have been positive ¥144.7 billion (US$1,447 million).)
Assets, Liabilities, and Net Assets
Total assets at fiscal year-end amounted to ¥3,821.9 billion
(US$38,219 million), down ¥121.7 billion from a year earlier. The
decline stemmed primarily from a fall in non-current assets.
Among current assets, cash and cash equivalents increased in
line with the issue of convertible bonds in August 2007 to pre-
pare for redemption of convertible bonds maturing in 2009.
Inventories declined ¥29.2 billion, to ¥383.1 billion (US$3,831
million), and the monthly inventory turnover rate, which is an
indication of asset efficiency, rose to 1.03 times, an improvement
of 0.10 of a point. Among non- current assets, investments and
long-term loans declined, due mainly to falling prices of our
holdings of listed shares.
Total liabilities stood at ¥2,691.7 billion (US$26,917 million),
down ¥91.2 billion from a year earlier. (Excluding the impact of
the previous fiscal year-end falling on a business holiday, which
resulted in the payment of trade payables being carried over
into fiscal 2007, liabilities would have increased ¥36.7 billion.)
Interest-bearing loans rose to ¥887.3 billion (US$8,873 million),
due to the issue of convertible bonds to finance redemption of
existing debt. Net interest-bearing debt (after subtracting cash
and cash equivalents) was ¥339.4 billion (US$3,394 million). The
D/E ratio was 0.94 times, and the net D/E ratio was 0.36 times.
084
ANNUAL REPORT 2008FUJITSU LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS