Fujitsu 2012 Annual Report Download - page 101

sales rose for image processing LSIs used in smartphones. In elec-
tronic components, sales of semiconductor packages and LCD mod-
ules declined, centered in Asia, but signs of a partial recovery in
demand began to appear in the fourth quarter.
The segment posted an operating loss for the period of ¥10.1
billion ($124 million), representing a deterioration of ¥31.1 billion
from fiscal 2010. In Japan, LSI earnings were affected by the revenue
decline, and the decrease in capacity utilization of manufacturing
lines in response to the decline in demand. Electronic components
earnings were affected by lower sales and rising prices for certain
materials. Outside Japan, earnings from electronic components were
impacted by falling sales and exchange rates.
In April 2012, with the aim of streamlining production capacity
in the LSI business, the Group concluded an agreement with Denso
Corporation for the transfer of the Iwate Plant (transfer scheduled for
October 1, 2012). In accordance with this transfer, the Company
recorded ¥5.9 billion ($73 million) in business restructuring costs for
impairment losses on disposal of property, plant and equipment, and
expenses for the relocation of employees.
Other Operations/Elimination and Corporate
This category includes operations not included in the reportable
segments, such as Japan’s Next-Generation Supercomputer project,
facility services and the development of information systems for
Group companies, and welfare benefits for Group employees.
This category also includes expenses which are not classified into
an operating segment. The expenses consist of strategic expenses
such as basic research and development expenses, as well as group
management shared expenses incurred by the Company.
The category posted an operating loss of ¥75.7 billion ($924 mil-
lion), representing a deterioration of ¥1.8 billion over fiscal 2010. This
was due mainly to upfront investments for new business development.
The K computer, which is being jointly developed by Japan’s
Institute of Physical and Chemical Research (RIKEN) and the Com-
pany, incorporates CPUs developed by the Group and other technolo-
gies of the Group. The system has reached 93% of the target
calculation speed of 10 petaflops per second, and for the second
consecutive term achieved the No. 1 ranking on the TOP500 list of
most powerful supercomputers, announced in November 2011. The
manufacturing of more than 800 computing racks has been com-
pleted, and development has entered the final stage. The system is
expected to be made available for use by researchers and other
scientists in November 2012.
Geographic Information
One of the Group’s management priorities is to increase sales and
raise profitability of its business in growing markets outside Japan.
Geographic financial information is important to the Group’s business
management and is useful for shareholders and investors in under-
standing the Group’s financial overview.
(Unit: billion yen)
Years ended March 31 2011 2012
YoY
Change
Change
(%)
Japan
Net sales . . . . . . . 3,389.2 3,396.2 6.9 0.2
Operating income . . 215.7 177.8 (37.9) (17.6)
[
Operating income
margin
] . . . . . . . [6.4%] [5.2%] [(1.2%)]
Europe,
Middle East,
Africa (EMEA)
Net sales . . . . . . . 849.5 817.5 (32.0) (3.8)
Operating income . . (18.4) (0.0) 18.4 ―
[
Operating income
margin
] . . . . . . . [(2.2%)] [(0.0%)] [2.2%]
The Americas
Net sales . . . . . . . 298.4 277.5 (20.8) (7.0)
Operating income . . 2.6 0.4 (2.1) (81.7)
[
Operating income
margin
] . . . . . . . [0.9%] [0.2%] [(0.7%)]
Asia-Pacific
(APAC) &
China
Net sales . . . . . . . 405.1 421.9 16.7 4.1
Operating income . . 11.0 7.6 (3.4) (31.0)
[
Operating income
margin
] . . . . . . . [2.7%] [1.8%] [(0.9%)]
Elimination &
Corporate
Net sales . . . . . . . (414.0) (445.7) (31.7) ―
Operating income . . (78.3) (80.6) (2.2) ―
Consolidated
Net sales . . . . . . . 4,528.4 4,467.5 (60.8) (1.3)
Operating income . . 132.5 105.3 (27.2) (20.6)
[
Operating income
margin
] . . . . . . . [2.9%] [2.4%] [(0.5%)]
Japan
Net sales amounted to ¥3,396.2 billion ($41,418 million), roughly
on a par with fiscal 2010. Production adjustments among customers
due to the flooding in Thailand had a negative impact on sales,
leading to revenue declines for car audio and navigation systems and
LSI devices, as well as server products and electronic components.
However, sales rose for mobile phones, as well as network products,
centered on mobile phone base stations. Operating income in Japan
totaled ¥177.8 billion ($2,169 million), a year-on-year decrease of
¥37.9 billion. Earnings were boosted by greater revenue from net-
work products, but declined overall as a result of the drop in sales for
LSI devices and electronic components, as well as upfront R&D invest-
ment in network and cloud services.
EMEA
Net sales amounted to ¥817.5 billion ($9,971 million), a decline of
3.8% from fiscal 2010, but roughly on a par with the previous fiscal
year on a constant currency basis. PC sales expanded in emerging
economies such as Turkey, Middle Eastern countries and Russia, and
revenue rose in the services businesses in Scandinavia and UK pri-
vate sector, though sales were down in UK public sector and in conti-
nental Europe. Operating income in EMEA was essentially at
break-even point, improving by ¥18.4 billion from the loss in the
previous fiscal year. The operating loss in fiscal 2010 was due mainly
to the one-time recognition of initial costs and other expenses asso-
ciated with the cancellation of certain long-term services contracts.
099
FUJITSU LIMITED ANNUAL REPORT 2012
Facts & Figures