Fujitsu 2013 Annual Report Download - page 43

(Billions of yen) (Billions of yen) (%) (Billions of yen)
(Years ended March 31) (Years ended March 31)
* For entire Technology Solutions segment
GRAPH 4 GRAPH 5 GRAPH 6
0
200
400
800
600
317.1
619.1
302.0
292.2
262.9
280.8
282.7
268.2
594.8 563.6
326.5
273.1
587.4
314.3
2009 2010 2011 20132012
555.1
0
15
60
45
30
32.5
5.3
8.9
45.5
7.7
25.9
4.4
2009 2010 2011 20132012
12
9
6
3
0
8.4
47.2
49.3
0
20
40
100
80
60
2009 2010 2011 20132012
86.9
67.2
74.0 73.4 59.5
Sub-segment Sales* Operating Income/
Operating Income Margin
Capital Expenditure*
(Years ended March 31)
* Including intersegment sales
Operating income (left scale)
Operating income margin (right scale)
System Products
Network Products
a decrease of 1.5% from the previous
fiscal year.
System Products: Sales of system prod-
ucts for the fiscal year ended March 31,
2013 decreased 7.0% year on year to
¥262.9 billion. In Japan sales contracted
significantly, on a swing-back following
the mass production of next-generation
supercomputer server systems and big
business deals in the previous year. Never-
theless, strong performance in sales of
x86 servers put Fujitsu at the top of the
domestic server market for a sixth con-
secutive year. Outside Japan, sales con-
tracted year on year on a decline in UNIX
servers due to consumers holding back on
purchases ahead of the launch of new
products, although sales of x86 servers
were brisk in every region. GRAPH 4
Network Products: Sales increased 4.0%
year on year, to ¥292.2 billion. GRAPH 4
Sales of optical transmission systems fell
sharply in North America as telecom
carriers shifted their investment focus to
LTE and other wireless systems, cutting
investment in the mobile backhaul and
other backbone systems where Fujitsu
supplies products. In Japan, however,
sales surged as carriers sought to cope
with increased traffic, rollout LTE, and
upgrade their networks.
Sales of mobile systems and network
solutions rose sharply due to higher sales
of LTE equipment and routers to cope
with higher volumes of data traffic stem-
ming from the increasing popularity of
smartphones and the rollout of LTE.
Operating income for the System
Platforms sub-segment totaled ¥49.3
billion, an increase of ¥2.0 billion from
the previous year. Overall, system prod-
ucts results were flat as the increased
income achieved from x86 server cost
cutting and higher unit prices offset
lower sales of UNIX servers and main-
frames. GRAPH 5
Income from Network Products also
increased, benefiting from higher sales,
stimulated by greater investments aimed
at coping with increased data traffic and
LTE, driven by the widespread populariza-
tion of smartphones. Income from North
America, however, was lower year on year.
Initiatives Going Forward
System Products: ICT plays an increas-
ingly vital role in ensuring social prosper-
ity and security. This trend is raising the
importance of servers, storage, software
and other products that form the founda-
tion of ICT infrastructure. Along those
lines, Fujitsu will move forward with devel-
oping platforms optimized for supporting
cloud computing, which will enable flex-
ible ICT utilization. GRAPH 6
In UNIX servers, Fujitsu will position its
new SPARC M10 as a mainstay product.
This will work to further strengthen its
partnership with Oracle, and in expanding
sales in and outside of Japan, increase its
share of the RISC market as it aims to
boost sales. In x86 servers, we will step up
our development in coordination with
Germany-based Fujitsu Technology
Solutions to strengthen cost competitive-
ness. At the same time, we will grow our
business globally by developing new
channels with major systems integrators,
enhancing our promotional activities,
and using modernization as a trigger to
prevail over competitors.
Network Products: Network products are
playing an increasingly important role in
the cloud era as data and networks
merge. In recent years we have main-
tained a profitable business structure by
reforming the development process to
achieve significant cost savings, and
business expansion driven by the need to
cope with increasing network traffic and
the rollout of LTE. In the next stage of
growth for the business, we plan to
achieve further profit gains by reducing
costs even further, growing our domestic
market share, and expanding sales glob-
ally. In optical transmission systems, our
capabilities in advanced technologies will
play a role in expanding our business as
we seek to increase sales of 100 Gbps-
class packet optical networking platforms
in and outside of Japan, in order to cope
with rapidly increasing data traffic.
In mobile systems and network solu-
tions, Fujitsu will aim to promote future
business expansion on a global stage.
Specifically, we will expand our business
in the growth field of LTE, while steadily
developing the high-density wireless base
stations compatible with the next genera-
tion network protocol, LTE-Advanced,
which we announced in March 2013.
041
FUJITSU LIMITED ANNUAL REPORT 2013
PERFORMANCE