Fujitsu 2012 Annual Report Download - page 45

GRAPH 6GRAPH 5GRAPH 4
(Billions of yen)(Billions of yen) (%)(Billions of yen)
Capital ExpenditureOperating Income/
Operating Income Margin
Sub-segment Sales*
(Years ended March 31)(Years ended March 31)(Years ended March 31)
* Including intersegment sales
n n Operating income (left scale)
Operating income margin (right scale)
n n PCs/Mobile Phones
n n Hard Disk Drives
0
300
600
1,500
1,200
900
376.0
325.8
1,206.7
1,002.1
830.6 676.2
264.7
1,154.2
889.5
283.1
1,125.6
842.5
302.5
1,119.6
817.1
2008 2009 2010 2011 2012 0
30
60
90
29.8
74.3
6.2
3.0
19.9
1.7
22.6
2.0
40.6
3.6
2008 2009 2010 2011 2012
12
8
4
00
5
10
25
20
15
19.6
17.7 15.6
15.5
11.0
2008 2009 2010 2011 2012
In mobilewear, sales of audio and
navigation devices declined year on year,
due mainly to the drop in factory utiliza-
tion rates in the wake of the earthquake,
and production slowdowns among auto-
makers due to the flooding in Thailand.
Operating income declined ¥2.7
billion from the previous fiscal year to
¥19.9 billion. GRAPH 5 In the PC
business, earnings in Japan rose for both
the consumer and corporate markets as
the decline in retail prices and rising cost
of HDDs was offset by reductions in
material and component procurement
expenses due to the strong yen. Outside
Japan, despite higher unit sales, primar-
ily in Europe, earnings declined on lower
revenue as a result of a falloff in unit
prices. In the mobile phone business,
unit sales and prices both rose consider-
ably, but earnings were flat as a result of
stepped-up investment in smartphone
development, and costs associated with
the earthquake and Thailand flooding. In
mobilewear, earnings fell significantly on
the sharp decline in revenue.
An additional factor regarding audio
and navigation device sales was Fujitsu’s
restructuring of its domestic production
framework and its efforts to strengthen
overseas production with the aim of
enhancing cost competitiveness and our
ability to respond to the global expan-
sion of clients.
Initiatives Going Forward
For the PC market, Fujitsu will conduct a
global campaign for its high-quality and
exceptionally reliable PCs made in Japan,
the “Izumo Models” produced by Shimane
Fujitsu Limited and the “Date Models”
manufactured by Fujitsu Isotec Limited.
We will also offer the Japan-developed
LIFEBOOK UH SERIES, the world’s thinnest
Ultrabook™, as well as the ESPRIMO FH
Series of desktop PCs with enhanced
television features and design. We will
further promote the new “My Cloud” PC
concept as a way for users to easily orga-
nize data that can be collected through-
out their homes, and to vastly broaden
their enjoyment of that data by utilizing
it over a cloud service. Outside Japan,
Fujitsu will step up PC sales for the corpo-
rate market in Germany, while in North
America the focus will be on bolstering
sales of slate PCs in the medical and
educational fields, and in Asia-Pacific and
China, on developing consumer demand.
In mobile phones, Fujitsu is develop-
ing such products as the high-spec,
water-resistant ARROWS F-10D smart-
phone utilizing a quad-core CPU, the
high-quality, compact and water-resistant
ARROWS Me F-11D easy-to-use smart-
phone that allows for easy transfer of
data, and the Raku-Raku Smartphone, a
large-screen smartphone that is the
latest model in the long-selling
Raku-Raku Phone Series for seniors. We
will distinguish our products from the
competition by further enhancing our
strengths in such areas as universal
design ? technologies, water-proofing
and dust-resistance. We will retain our
leading share in the Japan market, while
accelerating efforts to bolster and
increase efficiency in our product devel-
opment structure in preparation for
global business growth.
In mobilewear, Fujitsu will expand
sales of high-value-added products that
use ICT to connect people and society via
automobiles, such as the ECLIPSE Series
AVN-ZX02i car navigation system. Featur-
ing a nine-inch screen that is among the
largest in the industry, this system can
also be linked to smartphones and por-
table game devices. In July 2012, Fujitsu
Group subsidiary Fujitsu TEN Limited
established a joint venture with NK
MINDA Group, a major automobile com-
ponent manufacturer in India. With this
new company, we intend to put in place
a unified structure for the development,
design and manufacture of car naviga-
tion systems and other devices, as well
as to increase our business in the rapidly
expanding Indian market.
Performance
043
FUJITSU LIMITED ANNUAL REPORT 2012