Fujitsu 2012 Annual Report Download - page 99

Dollar and the Euro, but because of the weakening of the U.S. Dollar
against the Euro, the Group’s European subsidiaries were able to
lower dollar-denominated purchasing costs for parts and materials.
As a result, the impact on operating income from currency fluctua-
tions during fiscal 2011 was minimal overall. For fiscal 2011, a one
yen (¥1) fluctuation in the currency exchange rate translated into an
impact on operating income of approximately ¥0.6 billion for the U.S.
Dollar, ¥0.3 billion for the Euro, and ¥0.0 billion for the British pound.
Other Income (Expenses), Net Income and
Comprehensive Income
Other income (expenses) amounted to a net loss of ¥38.5 billion
($470 million), an increase of ¥8.2 billion from the previous fiscal
year. Although foreign exchange losses improved and the financial
balance (interest income plus dividend income minus interest
charges) improved from fiscal 2010 due to a decline in interest-
bearing debt, the Group recorded ¥15.1 billion ($185 million) in
business restructuring costs as other expenses. The business restruc-
turing costs were for the LSI devices, car audio and navigation sys-
tems, and services businesses outside Japan. In LSI devices, as part
of the restructuring program to optimize manufacturing capabilities,
the Company decided to transfer the Iwate Plant, one of its front-end
manufacturing centers, to Denso Corporation, recording ¥5.9 billion
($73 million) in impairment losses on plant disposal and one-time
costs for the relocation of employees. In car audio and navigation
systems, the Group spent ¥5.2 billion ($64 million) for reassigning
employees at plants in Japan as part of a reorganization of produc-
tion operations to enhance cost competitiveness, while in services
outside Japan, the Group recorded ¥3.9 billion ($48 million) in
expenses related to personnel rationalization, mainly in Europe and
North America. In addition, the Group recorded ¥7.5 billion ($92
million) for fixed costs as other expenses associated with the suspen-
sion of operations at factories affected by customer-related factors
and factories damaged by aftershocks from the Great East Japan
Earthquake.
Consolidated net income amounted to ¥42.7 billion ($521
million), a decrease of ¥12.3 billion from the previous fiscal year.
Income before income taxes and minority interests fell ¥35.5 billion
to ¥66.7 billion ($814 million), mainly as a result of the decline in
operating income, along with the recording of business restructuring
costs and other expenses. Income taxes decreased ¥18.1 billion
year-on-year to ¥29.9 billion ($366 million). The ratio of income
taxes to income before income taxes and minority interests was 45%,
compared with 47% in fiscal 2010. Although income tax expenses
increased due to adjustments in deferred tax assets stemming from
revisions to Japan’s tax code, this was offset by lower tax expenses
arising from decision of the liquidation of the Company’s European
subsidiary Fujitsu International Finance (Netherlands) B.V. during
the second quarter, and a stock transfer executed in line with group
reorganization. Minority interests totaled a loss of ¥5.9 billion ($73
million), an increase of ¥4.9 billion resulting from deteriorating
financial performance at the Company’s car audio and navigation
equipment joint venture, and a listed components subsidiary.
The Group views profitability and efficiency of invested capital in
businesses as important management indicators. For fiscal 2011, the
return on equity, calculated by dividing net income by average
owners’ equity, was 5.1%, a decline of 1.7 percentage points from the
previous fiscal year.
Other comprehensive income totaled a loss of ¥2.4 billion ($29
million), primarily as a result of a foreign currency translation adjust-
ment loss stemming from the ongoing appreciation of the yen.
Because the Group’s global business development primarily revolves
around service businesses, foreign currency fluctuations in the value
of the net assets of subsidiaries outside Japan are recorded in other
comprehensive income. The impact of stock price fluctuations on the
unrealized gain and loss on securities, net of taxes, is limited.
Comprehensive income, representing the total of other compre-
hensive income and income before minority interests, was ¥34.3
billion ($418 million).
2. Segment Information
Information by Operating Segment
Sales and Operating Income by Segment
The reportable segments were consolidated into the three segments
of “Technology Solutions,” “Ubiquitous Solutions,” and “Device Solu-
tions,” based on organizational structure, the characteristics of the
products and services, and the similarities in sales markets. The
“Other Operations” segment 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.
Sales (including intersegment sales) and operating income by
segment for fiscal 2011 are shown on the following pages.
(Unit: billion yen)
Years ended March 31 2011 2012
YoY
Change
Change
(%)
Technology
Solutions
Net sales . . . . . . . 3,014.3 2,934.9 (79.4) (2.6)
Operating income . . 162.8 171.2 8.4 5.2
[
Operating income
margin
] . . . . . . . [5.4%] [5.8%] [0.4%]
Ubiquitous
Solutions
Net sales . . . . . . . 1,125.6 1,154.2 28.6 2.5
Operating income . . 22.6 19.9 (2.7) (12.1)
[
Operating income
margin
] . . . . . . . [2.0%] [1.7%] [(0.3%)]
Device
Solutions
Net sales . . . . . . . 630.6 584.7 (45.9) (7.3)
Operating income . . 20.9 (10.1) (31.1) —
[
Operating income
margin
] . . . . . . . [3.3%] [(1.7%)] [(5.0%)]
Other
Operations/
Elimination &
Corporate
Net sales . . . . . . . (242.2) (206.3) 35.9 —
Operating income . . (73.9) (75.7) (1.8) —
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%)]
097
FUJITSU LIMITED ANNUAL REPORT 2012
Facts & Figures