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0
2,000
4,000
6,000
4,762.4
37.8
4,381.7
34.2
2010 2012 2013 20142011
4,679.5 4,528.4
37.4
4,467.5
33.7
35.1
20
30
40
50
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS
1. Analysis of Results
Business Environment
The global economy during fiscal 2013 continued to experience a
moderate recovery. In Europe, there was a resumption of economic
growth and signs of an economic recovery, particularly in Germany
and the UK. In the US, uncertainties over the federal government’s
fiscal policies eased, and the economy continued to recover, espe-
cially consumer spending and corporate capital investment.
In Japan, due to a stock market rally and yen depreciation
spurred on by the government’s economic policy and monetary
easing by the Bank of Japan, the economy is undergoing a moderate
recovery. Consumer spending rose, in part spurred by a demand for
purchases prior to an increase in the consumption tax rate. There has
been a moderate recovery in exports resulting from an improved
economic environment owing to the weaker yen and recovery in
markets outside Japan.
ICT (Information and Communication Technology) investment in
Japan is gradually increasing on signs of a rebound in corporate
capital investment resulting from a recovery in corporate earnings.
Condensed Consolidated Income Statements (Unit: billion yen)
Years ended March 31 2013 2014
YoY
Change
Change
(%)
Net sales . . . . . . . . . . . . . . . . . . 4,381.7 4,762.4 380.7 8.7
Cost of sales . . . . . . . . . . . . . . . . 3,177.9 3,493.2 315.2 9.9
Gross profit . . . . . . . . . . . . . . . . 1,203.7 1,269.1 65.4 5.4
Selling, general and
administrative expenses . . . . . 1,115.4 1,126.6 11.1 1.0
Operating income . . . . . . . . . . . 88.2 142.5 54.2 61.5
Other income (expenses) . . . . . (140.3) (49.6) 90.7 —
Income (loss) before income
taxes and minority interests . . . .
(52.1) 92.9 145.0 —
Income taxes . . . . . . . . . . . . . . . 24.2 37.0 12.8 52.8
Minority interests in
income (loss) of
consolidated subsidiaries . . . . 3.5 7.2 3.7 105.2
Net income (loss) . . . . . . . . . . . (79.9) 48.6 128.5 —
(¥ Billions) (%)
Net Sales and
Ratio of Net Sales Outside Japan
(Years ended March 31)
The following section, Management’s Discussion and Analysis of
Operations, provides an overview of the consolidated financial
statements of Fujitsu Limited (the “Company”) and its consolidated
subsidiaries (together, the “Group”) for the year ended March 31,
2014 (fiscal 2013). Forward-looking statements in this section are
based on management’s understanding and best judgment as of
March 31, 2014.
The Company’s consolidated subsidiaries outside Japan prepare
their financial statements in accordance with IFRS (International
Financial Reporting Standards). The effect of a revision to IAS 19
“Employee Benefits” is retrospectively reflected to the Group’s consoli-
dated financial statements for fiscal 2012. As a result, compared to
the amounts prior to the retrospective application, the fiscal 2012
amounts for operating income, income before income taxes and
minority interests, and net income have all been reduced by ¥7.0
billion. Other comprehensive income has decreased by ¥40.6 billion
and comprehensive income has decreased by ¥47.6 billion. Also, as a
result of bringing the unrecognized obligation for retirement benefits
for plans at consolidated subsidiaries outside Japan on the balance
sheet, total assets as of March 31, 2013 were reduced by ¥128.7
billion, while total liabilities increased by ¥28.6 billion and total net
assets were reduced by ¥157.3 billion (comprising reductions of ¥7.0
billion in retained earnings and ¥150.3 billion in accumulated other
comprehensive income). For details, please see “4. Retrospective
revisions due to changes in accounting standards.”
The impact of exchange rate fluctuations is calculated by taking
the average exchange rates in fiscal 2012 for the US dollar, euro, and
British pound and applying them to foreign currency-denominated
transactions in fiscal 2013.
0
100
200
150
50
250
0
10
8
4
6
2
105.3
142.5
2.4 3.0
88.2
2.0
132.5
2.9
94.3
2.0
2010 2012 2013 20142011
(¥ Billions) (%)
Operating Income and
Operating Income Margin
Operating Income (Left Scale)
Operating Income Margin (Right Scale)
Net Sales (Left Scale)
Ratio of Net Sales Outside Japan (Right Scale)
(Years ended March 31)
105
FUJITSU LIMITED ANNUAL REPORT 2014
MANAGEMENT FACTS & FIGURESRESPONSIBILITYPERFORMANCE