Fujitsu 2010 Annual Report Download - page 25

0
300
900
1,200
600
0
0.5
1.0
2.0
1.5
928.6
0.55
1.01 577.4
0.20
0.72
0.47
1.18
0.36
0.94
0.31
0.77
883.4
887.3
745.8
2006 2007 2008 2009 2010
0
100
200
300
400
170.8
296.4
23.4
38.1
257.6
2006 2008 2009 20102007
–80
–40
40
80
0
–30
–15
0
30
15
32.83
7.7
45.21
12.0
–13.2
5.0
10.9
–54.35
23.34
49.54
2006 2007 2008 2009 2010
EPS (Net Income (Loss) per Share),
ROE (Return on Equity)
Interest-bearing Loans,
D/E Ratio and Net D/E Ratio
Free Cash Flow
(¥ Billions) (Times)(¥ Billions) (Yen) (%)
investment securities compared with the previous fiscal year.
As a result, net income for fiscal 2009 was ¥93.0 billion, repre-
senting a year-on-year improvement of ¥205.4 billion.
Financial Issues and Initiatives in Fiscal 2009
The Fujitsu Group continued to improve its financial position in
fiscal 2009. The owners’ equity ratio rose by 1.5 points compared to
the previous fiscal year to 24.7%, primarily from net income posted
for the year. Free cash flow was a positive ¥296.4 billion; even
excluding proceeds from the sale of shares and other special items
it was a positive ¥111.6 billion. Interest-bearing loans amounted to
¥577.4 billion, principally as a result of redemptions of ¥250 billion
in convertible bonds and ¥50 billion in straight bonds that matured
in 2009. This put the D/E ratio at 0.72 times. Consequently, the net
D/E ratio was 0.20 times, falling to its lowest-ever level. Also in fiscal
2009, we drafted a new medium-term management plan that will
run through fiscal 2011. Under the plan, our goals are to realize free
cash flow of at least ¥150 billion and a D/E ratio of 1.0 times or less
by improving earnings and asset efficiency.
The monthly inventory turnover rate was 1.04 times, 0.06
points better than the previous fiscal year. We will make further
gains in efficiency to meet our medium-term target of 2.0 times.
* Forward-looking statements regarding the medium-term management plan are future
projections calculated based on a variety of judgments, estimates and assumptions. These
statements reflect predictions based on management’s judgment and objectives, as well as
conditions and assumptions, at the end of fiscal 2009 (March 31, 2010). As such, future results
may differ materially from these projections.
Approach to financing activities and status of credit ratings
To ensure efficient fund procurement to meet its funding
needs, the Fujitsu Group views the retention of an appropriate
level of on-hand liquidity as an important policy with respect
to financing activities. On-hand liquidity consists of cash and
cash equivalents, as well as the unused portion of commit-
ment lines established with multiple financial institutions. As
of March 31, 2010, the Group had on-hand liquidity of ¥633.0
billion, comprising ¥420.1 billion in cash and cash equivalents
and unused commitment lines with an aggregate yen value of
¥212.9 billion.
To procure funds from the global capital markets, the
company has acquired bond ratings from Moody’s Investors
Service (Moody’s), Standard & Poor’s (S&P), and Rating and
Investment Information, Inc. (R&I). As of March 31, 2010, the
company had bond ratings of A3 (long-term) from Moody’s,
A– (long-term) from S&P, and A+ (long-term) and a-1 (short-
term) from R&I.
Interest-bearing
loans (left scale)
D/E ratio (right scale)
Net D/E ratio
(right scale)
EPS (left scale)
ROE (right scale)
(As of March 31)(Years ended March 31) (Years ended March 31)
Kazuhiko Kato
Corporate Executive Vice President and
Chief Financial Officer
023
FUJITSU LIMITED Annual Report 2010
A Message From the CFO