Fujitsu 2011 Annual Report Download - page 23

QUESTION. 8
Please explain your stance on returns to shareholders and dividends.
ANSWER. 8
Our basic policy is to provide a stable dividend while ensuring sufficient internal reserves to
support the active expansion of our business. In fiscal 2010, as a result of steady improvements
in our financial condition, we paid an annual dividend of ¥10 per share as originally planned.
Under Fujitsu’s basic policy on the distribution of earnings, a portion of retained earnings is paid to shareholders to
provide a stable return on a continuous basis, and a portion is retained by the Company to strengthen its financial
base and support new business development opportunities that will result in improved medium- and long-term
performance. In addition, taking into consideration the level of profits, Fujitsu aims to increase the distribution of
profits to its shareholders when the financial base is sufficiently strong enough, including through share buybacks.
We began fiscal 2010 with a forecast of net income of ¥95 billion and an annual dividend of ¥10 per share. The
actual result was net income of ¥55 billion, falling short of expectations and
the previous year’s results due to an extraordinary disaster-related loss and
the booking in the previous year of profits from the sale of securities. We
did achieve, however, a steady improvement in our financial condition,
and therefore paid ¥10 per share in annual dividends as originally
planned. This, by the way, is the first time since fiscal 2000 we have paid
an annual dividend of ¥10 a share.
For fiscal 2011, we have set a net income target of ¥60 billion. Raising
our net income is one of our priorities for the year. As with fiscal 2010, we
plan to pay an annual dividend of ¥10 a share.
Fujitsu is grateful for the understanding and support of our sharehold-
ers. We will continue striving to enhance our corporate value on the basis
of the principles of the FUJITSU Way*.
* See pp. 064–065 for more
on the FUJITSU Way.
Return of profits and dividend policy
Message to shareholders and investors
QUESTION. 9
What message do you have for shareholders and investors?
ANSWER. 9
Fujitsu continues to make strategic investments for growth based on its approach of fostering
talent and technology. We have set forth key financial targets to achieve at an early stage:
raising the operating income margin to 5% or more, ratio of sales outside Japan to above
40%, and free cash flow of at least ¥150 billion/year.
Despite the challenging business environment, our basic management approach is to play offense and make
continual investments into talent and technology. We aim for sustainable growth by supporting the development
of groundbreaking new businesses. The minimum financial targets to sustain our growth, and that we hope to
achieve at an early stage, are an operating income margin of 5% or more, ratio of sales outside Japan of above
40%, and free cash flow of at least ¥150 billion/year.
In 2010, we introduced the brand promise “shaping tomorrow with you.” This promise encapsulates our desire
to be a long-term partner to our customers and to use ICT to realize a prosperous society. Fujitsu aims to lead the
world in developing the potential of ICT, while remaining a trusted and valued partner to our customers and support
their success. Additionally, for all of our stakeholders, including our valued shareholders and investors, we will
strive to be a corporate group they can trust as a partner that helps to create a better future.
Cash Dividends per Share
0
3
6
12
9
6.00
10.00
8.008.008.00
2007 2009 2010 20112008
(Yen)
(Years ended March 31)
MANAGEMENT
021FUJITSU LIMITED ANNUAL REPORT 2011
A CONVERSATION WITH THE PRESIDENT