Fujitsu 2014 Annual Report Download - page 36

HUMAN CENTRIC INNOVATION
Fiscal 2013
Reforming the Business Structure for a Fresh Start
One of the most significant results of the year ended March 2014
was the structural reform of our European continental operations
that was announced in February 2013 and subsequently exe-
cuted. I’ve been in our industry for a long time, and it is the best
executed restructuring program I’ve ever seen. It was an
extremely painful reform that included approximately 1,500 job
cuts, but I think the leadership team is very focused and imple-
mentation is going well. We treated people with respect, and we
collaborated well with the European worker’s councils. The good
thing from a customer perspective during this time is that we
kept focused on the marketplace while we were restructuring the
company. I think we were able to shift business in all areas in the
EMEIA region in a good direction, with some assistance from the
improving economies.
In continental Europe, deferred sales of storage devices
reduced income, but the cost-cutting effects of the restructure
I talked about earlier were significant, and will lead to winning
major deals in the future.
In the UK and Ireland, a reduction in the number of public
projects and postponements on large-scale deals impacted
income, but this was covered by expanded business in the pri-
vate sector and we successfully increased earnings and revenue
year on year in the second half.
In northern Europe, managed services and product businesses
were steady, in addition a minor personnel rationalization in the
summer of 2013 produced results and restricted losses. Overall,
the businesses were profitable in the second half.
Fiscal 2014
Cultivating Demand in the EMEIA Region
For the year ending March 2015, there are signs of overall eco-
nomic recovery in the UK, Nordic region and continental Europe,
so the outlook is for gradual increases in sales. Our business has
continued the trend of improving on the previous year, so we want
to achieve business growth in a multitude of ways in every region.
In continental Europe, we will continue with the structural
reform we are currently implementing with a focus on a swift
completion. Our top priority will be implementing the estab-
lished business model of continuing to stabilize the product
business and expanding the services business to create stable
earnings. We want to effectively utilize the new global matrix
organization to provide global solutions and aim for an ensured
service framework, while also proactively recruiting and training
our talent in the services sector.
In the UK and Ireland, the public sector has traditionally
accounted for more than half our business, but over the past few
years we have targeted growing demand in the private sector.
This strategy is clearly bearing fruit. We aim to further accelerate
the growth of private sector business and bolster results in the
year ending March 2015.
Then, in our Nordic business, there are very strong outsourcing
and managed services businesses in Finland. We’re going to
encourage expansion of these businesses into some of the other
Head of EMEIA
Corporate Senior Vice President
Duncan Tait
- Aiming to increase customer satisfaction and grow their businesses -
EMEIA (Europe, Middle East, India, Africa)
Providing Products and Services
Swiftly, Optimally, and Globally
The EMEIA region accounts for approximately half of the Fujitsu Group’s sales outside
of Japan. It includes Fujitsu Services Holdings PLC in the UK and Fujitsu Technology
Solutions (Holding) B.V. in Germany as locally incorporated companies. The region’s
workforce accounts for about half of Fujitsu’s approximately 61,000 employees out-
side of Japan (as of the end of March 2014).
034 FUJITSU LIMITED ANNUAL REPORT 2014
FEATURE: MESSAGE FROM SALES GROUP HEADS AND A REGIONAL HEAD