Fujitsu AR'99(E)
Total Page:16
File Type:pdf, Size:1020Kb
50p10/66p2 50p10/66p2 FUJITSU LIMITED FUJITSU LIMITED Annual Report Annual Report 1999 ©1999 6-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8211, Japan Printed in Japan Telephone: +81-3-3213-4160 BA0013-1M Facsimile: +81-3-3216-9365 This annual report is Homepage URL: http://www.fujitsu.co.jp/index-e.html printed on recycled paper. C4 C1 50p10/66p2 50p10/66p2 Shareholders’ Data 49 CONTENTS Capital: ¥261,222 million Common Stock: Authorized: 5,000,000,000 shares 1 Consolidated Financial Highlights Issued: 1,884,139,404 2 To Our Shareholders Number of Shareholders: 156,110 Percentage of Number of shares total shares 6 Special Feature—Solutions Business Principal Shareholders held (thousands) outstanding 12 State of Readiness for Year 2000 Fuji Electric Co., Ltd. 237,963 12.6% Asahi Mutual Life Insurance Company 117,172 6.2% 13 Consolidated Net Sales and Operating Income The Dai-Ichi Kangyo Bank, Limited 76,817 4.1% by Segment The Sumitomo Trust and Banking Company, Limited (Trust services) 60,851 3.2% 14 Environmental and Social Activities The Chase Manhattan Bank NA London (Standing proxy: The Fuji Bank, Ltd.) 46,437 2.5% 18 Board of Directors and Auditors The Industrial Bank of Japan, Limited 42,202 2.2% 19 Five-Year Summary The Chuo Trust and Banking Company, Limited (Trust services) 38,284 2.0% 20 Management’s Discussion and Analysis of Operations The Mitsubishi Trust and Banking Corporation (Trust services) 38,024 2.0% 24 Consolidated Balance Sheets The Asahi Bank, Ltd. 29,221 1.6% 26 Consolidated Statements of Operations The Sakura Bank, Ltd. 27,090 1.4% Corporate Headquarters 27 Consolidated Statements of Shareholders’ Equity 6-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8211, Japan Telephone: +81-3-3216-3211 28 Consolidated Statements of Cash Flows Transfer Agent 29 Notes to Consolidated Financial Statements The Toyo Trust and Banking Company, Limited 4-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan 45 Independent Auditors’ Report Stock Exchange Listings Japan: Tokyo, Osaka, Nagoya 46 Fujitsu Group Companies Overseas: Frankfurt, London, Zurich, Basel, Geneva 49 Shareholders’ Data Shareholder Information For further information, please contact: Fujitsu Limited Investor Relations Telephone: +81-3-3213-4160 Facsimile: +81-3-3216-9365 E-mail: [email protected] (March 31, 1999) C2 C3 Consolidated Financial Highlights 1 Yen U.S. Dollars (millions) (millions) (except per share data) (except per share data) Fujitsu Limited and Consolidated Subsidiaries Years ended March 31 1998 1999 1999 For the year: Net sales .................................................................................................. ¥4,985,382 ¥5,242,986 $43,330 Operating income .................................................................................... 177,353 132,287 1,093 Income before income taxes and minority interests .................................. 123,855 49,625 410 Net income (loss) ..................................................................................... 5,587 (13,638) (112) Cash flows from operating activities......................................................... 323,856 350,296 2,895 Per share (Yen and U.S. dollars): Earnings (loss) Basic .................................................................................................... ¥ 3.0 ¥ (7.3) $ (0.060) Diluted................................................................................................. 3.0 — — Cash flows from operating activities......................................................... 174.4 186.9 1.544 Cash dividends......................................................................................... 10.0 10.0 0.083 Cash dividends to face value ........................................................................ 20% 20% 20% At year-end: Shareholders’ equity ................................................................................ ¥1,185,229 ¥1,165,312 $ 9,630 Total assets .............................................................................................. 5,123,039 5,112,330 42,250 Note: The U.S. dollar amounts above have been translated from yen, for convenience only, at the rate of ¥121=US$1, the approximate Tokyo foreign exchange market rate as of March 31, 1999. Net Sales Net Income (Loss) Cash Flows from Shareholders’ Equity (¥ Billion) (¥ Billion) Operating Activities (¥ Billion) Operating Income Net Income (Loss) per Share (¥ Billion) Return on Equity (¥ Billion) (¥) Cash Flows from (%) Operating Activities per Share (¥) 3,257 3,761 4,503 4,985 5,242 45 63 46 5 –13 250 170 282 323 350 1,100 1,149 1,181 1,185 1,165 194 34.5 5.6 189 177 25.1 174.4 152 24.8 153.3 186.9 4.2 138.2 132 4.0 3.0 93.4 0.5 ’95 ’96 ’97 ’98 ’99 ’95 ’96 ’97 ’98 ’99 ’95 ’96 ’97 ’98 ’99 ’95 ’96 ’97 ’98 ’99 –1.2 –7.3 (Years ended March 31) (Years ended March 31) (Years ended March 31) (Years ended March 31) 2 To Our Shareholders New Directions for the Internet Age 0 Rapid advances in information and communications technologies centering on the Internet have accelerated globalization in every industry and brought great changes to the ways that companies do business and people live. The Fujitsu Group foresaw these revolutionary changes early on, and we have been reorganizing our operational structure to focus on providing solu- tions that unleash the potential of the network age. We have been develop- ing our services and software business in Japan and overseas as major profit centers going forward. At the same time, we have been restructuring our semiconductor business. To be better positioned to take advantage of global opportunities emerging in the Internet era, several challenges remain, including the need to further improve operational efficiency as well as to restore profit- ability to our semiconductor business. By being more selective and further concentrating our management resources on Internet-related core business areas, we intend to capitalize on these opportunities. In fiscal 1998, ended March 31, 1999, we continued to face difficult busi- ness conditions, including cutbacks in investment by Japanese telecommuni- cations companies and declining semiconductor prices. However, sustained efforts in our overseas businesses, as well as in services and software, began to bear fruit so that we were able to increase consolidated net sales 5.2%, to ¥5,242.9 billion. Nevertheless, due to declines in telecommunications sales in Japan and operating income, as well as extraordinary expenses resulting from the restructuring of our semiconductor operations, we posted a net loss of ¥13.6 billion for the year. Looking ahead, on the strength of our ongoing structural reform measures and our Internet-based business strategy, we anticipate a quick return to profitability. An Unwavering Focus on the Needs of the Customer 0 Today, when the burgeoning use of the Internet is bringing great change to society, com- panies and individuals, “customer focus” is a value proposition that is more essential to achieving healthy growth and profits than ever before. We intend to seize new business opportunities by keeping carefully attuned to the evolv- ing needs of our customers. By thoroughly adopting and internalizing this mindset throughout the Fujitsu Group, and by acting upon it, we can tap a wellspring of new growth and fulfill our mission as a global leader in the information technology (IT) industry. One of our strongest assets in this regard is the Fujitsu Group’s corps of 55,000 top-notch services and software personnel, who are using their high- level expertise in implementing large-scale systems to bring optimal solutions to customers on a global basis. Based on our “Global Solution Link” concept, From left: Fujitsu Group companies like Amdahl Corporation and DMR Consulting Tadashi Sekizawa, Chairman Naoyuki Akikusa, President Group, Inc. in North America, ICL PLC in Europe, Fujitsu Asia Pte. Ltd. and 4 To Our Shareholders Fujitsu Australia Ltd. are pooling their know-how, services and products to offer world-class, locally tailored solutions that precisely satisfy customers’ diverse needs. We recently made NIFTY Corporation a wholly owned subsidiary. By integrating our NIFTY SERVE and InfoWeb on-line services, we will further consolidate our position as Japan’s largest Internet service provider and as a leader in offering content and forums that are opening up new vistas for Japanese users. In addition to providing the state-of-the-art equipment needed to support the continuing expansion of the Internet, we will also take full advantage of this infrastructure to help companies create new ways of doing business. Leveraging Our Core Technological Strengths 0 The Fujitsu Group continues to make strides and gain recognition as a total solutions provider. The solutions that our customers rate most highly for their quality are those that are supported by products embodying our advanced core technologies. In the United States, which leads the world in Internet penetration, demand is increasing for high-speed, high-capacity communications infra- structure, and this trend is spreading to Japan and the rest of the world. We are making important contributions to next-generation network infrastructure through our R&D in leading-edge wavelength division multiplexing (WDM) optical network technology and through innovative products, such as our FETEX-150 E-Cube hybrid switching system with Internet protocol function- ality and our experimental W-CDMA equipment for mobile communications. In the information processing field, we will