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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 ¥81.0 billion ($863
million), representing a deterioration of ¥5.3 billion over fiscal
2011. This was due mainly to upfront investments for new busi-
ness development.
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 2012 2013
YoY
Change
Change
(%)
Japan
Net sales . . . . . . . 3,396.2 3,306.4 (89.7) (2.6)
Operating income
. .
177.8 178.4 0.6 0.4
[
Operating income
margin
] . . . . . . . [5.2%] [5.4%] [0.2%]
Europe,
Middle East,
Africa (EMEA)
Net sales . . . . . . . 817.5 785.2 (32.3) (4.0)
Operating income
. .
(0.0) (12.4) (12.4) —
[
Operating income
margin
] . . . . . . . [(0.0%)] [(1.6%)] [(1.6%)]
The Americas
Net sales . . . . . . . 277.5 273.7 (3.8) (1.4)
Operating income
. .
0.4 (2.2) (2.7) —
[
Operating income
margin
] . . . . . . . [0.2%] [(0.8%)] [(1.0%)]
Asia-Pacific
(APAC) &
China
Net sales . . . . . . . 421.9 468.7 46.8 11.1
Operating income
. .
7.6 10.4 2.8 37.7
[
Operating income
margin
] . . . . . . . [1.8%] [2.2%] [0.4%]
Elimination &
Corporate
Net sales . . . . . . . (445.7) (452.4) (6.6) —
Operating income
. .
(80.6) (79.0) 1.5 —
Consolidated
Net sales . . . . . . . 4,467.5 4,381.7 (85.8) (1.9)
Operating income
. .
105.3 95.2 (10.0) (9.5)
[
Operating income
margin
] . . . . . . . [2.4%] [2.2%] [(0.2%)]
Japan
Net sales amounted to ¥3,306.4 billion ($35,175 million), a decrease
of 2.6% compared to fiscal 2011. Sales of PCs and mobile phones
decreased due to intensifying competition and LSI devices were
impacted by lower demand, although sales of Network Products and
Infrastructure Services, primarily in network-related sales, increased.
Operating income was ¥178.4 billion ($1,899 million), a year-on-
year increase of ¥0.6 billion. The positive impact of higher sales in
the network-related business, yen depreciation for electronic compo-
nents and the effect of restructuring initiatives in car audio and
navigation systems were offset by lower revenue from PCs, mobile
phones, and LSI devices.
EMEA
Net sales amounted to ¥785.2 billion ($8,354 million), a decrease of
4.0% from fiscal 2011. Sales of Infrastructure Services were adversely
affected by constrained corporate spending stemming from the
economic downturn, mainly in the first half, and sales volumes of PCs
decreased. Operating loss was ¥12.4 billion ($132 million), repre-
senting a deterioration of ¥12.4 billion from fiscal 2011. Infrastruc-
ture services were adversely impacted by lower revenues and an
increase in retirement benefit costs at a UK subsidiary. In addition to
falling PCs sales, there was an adverse impact from higher procure-
ment costs in Europe for components and materials denominated in
U.S. dollars due to depreciation of the euro against the dollar mainly
in the first half of the fiscal year.
The Americas
Net sales amounted to ¥273.7 billion ($2,912 million), a decline of
1.4% from fiscal 2011. On a constant currency basis, sales declined
5%. Sales of optical transmission systems decreased due to con-
strained investment by North American telecommunications carriers,
mainly in the first half of the fiscal year. Sales of UNIX servers
declined in anticipation of the introduction of new models. Operating
loss for the region amounted to ¥2.2 billion ($24 million), a deterio-
ration of ¥2.7 billion from fiscal 2011. Income declined as a result of
lower revenue from optical transmission systems.
APAC & China
Net sales amounted to ¥468.7 billion ($4,987 million), a year-on-year
increase of 11.1%. Sales of car audio and navigation systems increased
due to a recovery in automobile production, which had stalled follow-
ing the floods in Thailand in the previous fiscal year. Sales of Infrastruc-
ture Services also increased. Operating income was ¥10.4 billion ($112
million), an increase of ¥2.8 billion from fiscal 2011.
102 FUJITSU LIMITED ANNUAL REPORT 2013