Fujitsu 2014 Annual Report Download - page 21

IFRS Base targets for the Fiscal Year Ending March 31, 2015 (Fiscal 2014)
We are positioning fiscal 2014 as a year for shifting Fujitsu to medium- to long-term growth. Accordingly, we are increas-
ing our upfront investments to drive growth in global business and hone the competitiveness of our products and
services. As a result, our fiscal 2014 targets are net sales of ¥4,800.0 billion and operating profit of ¥185.0 billion, up
25.6% year on year. We are forecasting profit before tax of ¥190.0 billion and net profit (profit for the year attributable to
owners of the parent) of ¥125.0 billion.
Fujitsu has decided to voluntarily adopt International Financial
Reporting Standards (IFRS) for its consolidated financial results,
beginning in fiscal 2014. As the importance of our business
outside Japan grows year by year, we have decided to unify our
accounting standards with Group companies outside Japan that
have already adopted IFRS, which will enable coherent business
management for Group companies both in and outside of Japan.
In adopting IFRS, Fujitsu also seeks to facilitate international
comparisons of financial information in global capital markets.
Having positioned fiscal 2014 as a year for shifting Fujitsu to
medium- to long-term growth, we are targeting net sales of
¥4,800.0 billion and operating profit of ¥185.0 billion (IFRS
basis) for the fiscal year.
Our net sales forecast reflects strong growth projected in the
services business and an anticipated recovery in the demand for
electronic components both in and outside Japan. We have also
factored in a projected increase in sales of network products and
car audio and navigation equipment outside Japan. On the other
hand, in the Ubiquitous Solutions segment, we are expecting a
decline in consumer demand on account of the increased con-
sumption tax rate, lower demand for PCs, which had risen owing
to the need for replacements prior to the end of support for an
operating system product, and declining unit sales of mobile
phones, among other factors.
Turning to the operating profit forecast, in the Ubiquitous Solu-
tions segment, we are expecting a decline in extraordinary costs in
the mobile phone business, with progress in quality assurance and
in optimizing the level of inventory. We also project an effect from
steps taken in fiscal 2013 such as the integration of manufacturing
sites and the shift of development resources into growth fields.
In the Technology Solutions and Device Solutions segments, we
are expecting higher earnings from actual businesses. However,
the level of the overall increase in earnings is expected to be
limited because of higher upfront investments to expand and
enhance new fields with the aim of driving medium- to long-
term growth, primarily in the Technology Solutions segment.
Specifically, we will invest ¥10.0 billion, mainly in cloud
computing-related areas in Japan and in multi-regional business
deals outside Japan. Additionally, we will invest ¥4.0 billion
related to SDN in network products. Furthermore, we will make
investments of ¥10.0 billion to drive medium- to long-term
growth, such as investments in innovation fields including next-
generation medical care and the basic research expenses of
Fujitsu Laboratories Ltd. In total, Fujitsu is forecasting upfront
investment of around ¥25.0 billion.
Fujitsu is forecasting profit before tax of ¥190.0 billion and profit
for the year attributable to owners of the parent of ¥125.0 billion.
FISCAL 2014 FULL-YEAR CONSOLIDATED FORECAST (IFRS BASIS)
Fiscal 2013
(Actual)
Fiscal 2014
(Forecast) Change Change (%)
Net Sales 4,762.4 4,800.0 37.5 0.8
Operating Profit
(Operating Profit Margin)
147.2
(3.1%)
185.0
(3.9%)
37.7
(0.8%)
25.6
Profit Before Tax 161.1 190.0 28.8 17.9
Net Profit (Profit for the Year Attributable to Owners of the Parent) 113.2 125.0 11.7 10.4
(Billion Yen)
FUTURE CHALLENGES AND MEASURES
019
FUJITSU LIMITED ANNUAL REPORT 2014
MANAGEMENT FACTS & FIGURESRESPONSIBILITYPERFORMANCE
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