Fujitsu 2011 Annual Report Download - page 135

The per share fair value of the stock options of Fujitsu Frontech Limited, granted during the year ended March 31, 2011, was esti-
mated as follows,
(1) Valuation method: Black-Scholes model
(2) Basic factors and estimation method:
Expected volatility of the share price*1 32.825%
Expected life of the option*2 4.724 years
Expected dividend*3 16 yen per share
Risk-free interest rate*4 0.311%
*1 The volatility is calculated based on the share price over a period of 4.724 years (November 21, 2005 through August 13, 2010).
*2 The expected life of the options is based on the expected service years of board member after allotment date, which is estimated from past periods of serving as
board members and the period between the date that a person to be vested becomes a board member and the allotment date.
*3 The actual dividend on common stock for the year ended March 31, 2010.
*4 Interest on government bond over the expected life of the options.
4. Estimation method for number of vesting shares
The number is based on past results of forfeited stock options because of difficulties in a reasonable estimation for future forfeiture.
22. Business Combinations
For the year ended March 31, 2011
No significant transactions.
For the year ended March 31, 2010
[Acquisitions Accounted for by Applying the Purchase Method]
n Conversion of Fujitsu Technology Solutions (Holding) B.V. into a Consolidated Subsidiary of the Company
1. Name and Business Description of the Acquired Business; Principal Reasons for Carrying Out the Business Combination; Date of the
Business Combination; Legal Form of the Business Combination and the Name of the Business Subsequent to the Combination;
Percentage of Voting Rights Held
1) Name and Business Description of the Acquired Business
Name of the acquired business: Fujitsu Siemens Computers (Holding) B.V.
Business description: Development, manufacture, sale and maintenance of information systems
2) Principal Reasons for Carrying Out the Business Combination
The Company and Siemens AG of Germany integrated their information system businesses in Europe and established Fujitsu
Siemens Computers (Holding) B.V. on October 1, 1999 for the development, manufacture, sale and maintenance of information
systems. Due to changes in the competitive environment in the ICT industry and new business opportunities, particularly in the
infrastructure services market, the Company decided to convert Fujitsu Technology Solutions (name changed from Fujitsu
Siemens Computers in April 2009) into a consolidated subsidiary. Fujitsu Technology Solutions, which mainly operates in
Germany, one of the biggest ICT markets in Europe, will help the Company promote the globalization of its products business. In
addition, the Company will offer high value-added services to customers by strengthening the relationship between Fujitsu
Technology Solutions and Fujitsu Services Holdings PLC, a UK subsidiary leading in service business in Europe, in order to accel-
erate the improvement of profitability outside Japan and pursue opportunities for growth in the infrastructure service business.
3) Date of the Business Combination
April 1, 2009
4) Legal Form of the Business Combination and the Name of the Business Subsequent to the Combination
Legal form of the business combination: Acquisition of shares
Name of the business subsequent to the combination: Fujitsu Technology Solutions (Holding) B.V.
5) Percentage of Voting Rights Held
Prior to the acquisition 50%
Subsequent to the acquisition 100%
133FUJITSU LIMITED ANNUAL REPORT 2011
FACTS & FIGURES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS