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7
1
8
23
4
5
6
1Company A 5.6%
2Company B 4.8%
3Company C 4.5%
4Company D 4.2%
5Company E 3.2%
6Company F 3.0%
7Fujitsu 2.8%
8Others 72.0%
0
200
400
800
600
639.4
696.2 712.7
675.6
2013 2015 2016 20172014
654.6
EMEIA Europe, the Middle East, India and Africa
MARKET TRENDS
Regarding economic trends in the EMEIA region, recovery in
Germany is projected to remain on track, with domestic demand
strong atop a robust employment and personal income environ-
ment, coupled with growth in exports. In France and Southern
Europe, despite an emerging turnaround due to a brief pause in
the region’s worsening employment and personal income land-
scape, austerity measures and high unemployment are likely to
constrain economic growth. In the UK, economic recovery contin-
ues apace, with rising share and home prices continuing to spur
improvement in consumer sentiment. In the Nordic region, while
economies are stagnant for now, gradual recovery in economic
growth is anticipated. Graph 02
The forecast for the 2014 EMEIA IT market is year-on-year
growth of 2.4%, roughly the same modest, but consistent, pace
of 2.3% growth seen for 2013. The overall 2014 EMEIA IT services
market is projected to grow by 2.9%—mild growth that is none-
theless on track to surpass growth of 1.2% in 2013. In the hard-
ware market, while high-end servers will likely experience
significant negative growth greater than the previous year, a
substantial recovery in mid-range servers, along with a modest
rebound expected in low-end servers, should partially counter
this effect. Consequently, growth in the overall server market is
projected to fall by 1.0%, compared to the decline of 6.7% in the
previous year. In the storage market, while 2013 saw a year-on-
year contraction of 3.3%, the forecast for 2014 is flat growth of
0.5%. In the PC market, the conventional PC market continued to
contract. The market declined by 13.4% in 2013, and a year-on-
year contraction of 5.1% is projected for 2014. Tablets and
e-book readers will likely fall short of the 40.4% year-on-year
growth recorded in 2013 but the market is still projected to grow
year on year by 8.1% in 2014.
INITIATIVES GOING FORWARD
From fiscal 2014, Fujitsu will promote operations in the EMEIA
region under four regional categories— Central Europe; Western
Europe, the Middle East, India and Africa; UK and Ireland; and
the Nordic region.
In Central Europe and Western Europe, the Middle East, India
and Africa, from 2013 we enacted structural reforms in step with
a workforce reduction of roughly 1,500 people, and had com-
pleted over 90% of this task as of March 31, 2014. In tandem
with targeted early completion of structural reforms in 2014,
Fujitsu is undertaking initiatives to stimulate growth. Specifi-
cally, Fujitsu will continue to increase its emphasis on services
within its business portfolio, which is mainly centered on prod-
ucts at present. In addition to bolstering HR development in
services and solutions, we are leveraging our new global matrix
management structure announced in April 2014 (see p. 21) to
promote utilization of a globally standardized solution and
services framework in a bid to expand the services business and
achieve greater profitability. In the products business, along
with shifting to a mix of products that support the services
business and offer even higher added value, we will deepen
business ties with Japan in pursuit of greater efficiency in devel-
opment and operations.
In the Middle East, we are building a stronger market pres-
ence via efforts launched last fiscal year to introduce
FUJITSU DATA
MARKET DATA
Graph 01 Graph 02 Graph 03
SHARE OF 2013 IT SERVICES MARKET IN
THE UK (REVENUE BASIS)
IT MARKET FORECASTS (EMEA) NET SALES* AND OPERATING INCOME
MARGIN
–300
0
300
600
1,200
900 849.5
975.6
2010 2012 2013 20142011
12
9
6
3
0
–3
–0.3 –0.0 0.3
817.5 785.2
–2.2 –2.5
937.3
(Billions of U.S. dollars) (Billions of yen) (%)
(Years ended March 31)
(Source: Gartner, “Market Share: IT Services, 2013” 31
March 2014)
* Chart created by Fujitsu based on Gartner data
(Source: IDC, May 2014 “Worldwide Black Book Query Tool,
Version 1, 2014”)
(EMEA: Europe, the Middle East and Africa) * Including intersegment sales
Net sales (left scale)
Operating income margin (right scale)
Explanations for underlined words can be found in the glossary on pages 160-162.
058 FUJITSU LIMITED ANNUAL REPORT 2014
INITIATIVES BY REGION
EMEIA