How XBRL Transformed Fujitsu's Internal Financial Reporting

How XBRL Transformed Fujitsu’s Internal Financial Reporting Platform March 26, 2009

Jaideep Shah Sr. Product Manager AgendaAgenda  Business Drivers

 Case For Modernization

 Solution Details

 Fujitsu’s XBRL Advantage

 Q & A

 Headquarters: Tokyo, Japan  President: Kuniaki Nozoe  Established: June 1935  Revenue: US$53.3 billion  R&D Expenditure: US$2.6 billion  Employees: 167,000 worldwide  Stock Exchange Listings: Tokyo, Osaka, Nagoya, Frankfurt, London, Swiss

Other Operations (US$5.3 billion)

Device Solutions Technology 9.0% • LSI Devices Solutions • Electronic Components • Others 13.8% • System Platforms • System Products (US$8.0 billion) • Network Products 56.6% • Services Ubiquitous 20.6% Product Solutions (US$32.7 billion)

• PCs/Mobile Phones • Hard Disk Drives • Others (US$11.9 billion)

Note: Consolidated revenue and R&D expenditure for fiscal year ended March 31, 2008. US$1 = ¥100. WW employees as of Mar. 31, 2008. © FUJITSU Limited 2009 ChangesChanges inin GlobalGlobal BusinessBusiness EnvironmentEnvironment

Early financial results, Internal control IFRS Quarterly (SOX) ISA disclosures Corporate Management

Continuous Environmental business protection/ Security operation regulations

 Standardize accounting rules

 Get more transparency with fair value basis

 Matching principle between expenses and revenues

 Individually optimized systems

 The latest “Cutting-edge technologies” applied case by case

 Dispersed systems

 No TCO visibility

 Unknown system owners

Compliance Governance

• Standard • Shared strategy reporting practices and values

• Measure and • Management verify performance transparency

• Better data • Sustainable management improvement

Raise Change Make best Awareness Process Use of IT

Compliance + Governance

Standardize Visualize

Enforcement Reporting

Factory & Contracts Procurement

Summit ``

FOCS Fujitsu Order Information Control System Overseas Systems operations

12791279 systemsystem interfaces,interfaces, 400400 formsforms andand 11 millionmillion productproduct codecode mastersmasters

 Principles – interoperability, reusability, scalability etc.

 Define and thoroughly implement IT policies

 Security & disaster counter measures

 Full-scale implementation of overall IT control

 No “big-bang” approach

 Enhance IT investment

 Functional units  Corporate IT Unit  Financial and Accounting Division  Financial PKG development division  Software Unit  Common technology unit  In house compliance experts  Corporate Quality Assurance

 Cross disciplinary teams  Speak each others language?  Regular meetings  Core team member mobilizes own department

Realizing a “visible”, “scalable” and “adaptive” system

Before

 Difficult to design and maintain integrated database system  Mix of massive application assets (ERP/PKG/bespoke)  Difficult to rebuild system with “big-bang” approach

Realizing a “visible”, “scalable” and “adaptive” system

Before After

 Difficult to design and maintain  Business activity recorder for integrated database system data control and utilization  Mix of massive application  SOA based system assets (ERP/PKG/bespoke) development  Difficult to rebuild system with  New system development “big-bang” approach approach XML, XBRL technology implementation

XBRL - eXtensible Business Reporting Language

 Family of "XML" or data tagging and Excel SAP markup languages to facilitate financial data interchange globally while recognizing XBRL regional jurisdictions and various industry

domains Glovia Oracle

 Developed by an international non-profit consortium

 Already used in a number of business and regulatory bodies in other countries

 Improved process timelines

 Reduced accounting complexity

 Clear data comparability

 Higher quality analysis & reporting

 Easy data handling

 Automation to reduce errors

 Used for  Data integration/consolidation  Interoperability between applications  Building and maintaining the audit trail  Automated report generation  Reconciliation between different types of end reporting Source: XBRL consortium, www.xbrl.org

© FUJITSU Limited 2009 OtherOther CoreCore TechnologiesTechnologies AndAnd ConceptsConcepts  SOA – Service oriented architecture SOA  Creates composite capabilities from diverse systems  Promotes re-use  Keeps original IT landscape

 Central repository or Business

activity recorder Old New Data Data  Separates data from processing  Separated data from visualization Business Activity recorder  Main store to maintain audit trail

SUMMIT L o S P

FOCS g t e A i a

Sales ordering system c r n c f a s e d c l y c

a o J s t r

Procurement system o u

d t A u e n

u i r m t n n t i o t n a e

Production system m g l r i z f a a a t c i t c i Maintenance/Contract system e o n Asset mgmt system

BusinessBusiness ActivityActivity RecorderRecorder

Head Quarters GroupGroup CompaniesCompanies ・・domesticdomestic：：100100 SubSub systemsystem SubSub systemsystem SubSub systemsystem SalesSales managementmanagement ・・overseasoverseas：：6060 AA BB ・・・ NN systemsystem

EAI-HubEAI-Hub

ConsolidatedConsolidated AccountingAccounting UnitUnit accountingaccounting accountingaccounting systemsystem forfor systemsystem systemsystem managementmanagement

EAI-Hub EAI-Hub detaildetail accountaccount slipslip

AutomaticAutomatic JournalizationJournalization System System migration

journaljournal Slip Slip Service Bus ConsolidatedConsolidated AccountingAccounting UnitUnit accountingaccounting accountingaccounting systemsystem forfor XBRL GL systemsystem XBRL GL systemsystem managementmanagement

In the future BusinessBusiness ActivityActivity RecorderRecorder

Sales DB Financial DB

Balance SalesSales SalesSales DataData FinancialFinancial Sales Data Sheet, ServiceService Summarize Service ServiceService Summarize Service Profit and Loss detaildetail accountaccount journaljournal slipslip SlipSlip Service Bus

XBRLXBRL GLGL

BusinessBusiness ActivityActivity RecorderRecorder

 Users  Executives – Sales data  Auditors – internal audit  Others – reports

 Going forward  Support additional systems  Enable individual group based access for localized maintenance © FUJITSU Limited 2009 CurrentCurrent BenefitsBenefits Business groups  Accounting groups drawing old and new information for audit trail  Accessing composite data from diverse systems  Reduction of errors because of reusability of data  Seamless data transition has allowed users to keep familiar user interfaces  No disruption to operations

IT groups  Modernized infrastructure  Performance on par and meeting SLA

 Take a step by step process

 IT and line of business (LOB) groups must join forces

 Top down mobilization is crucial

 Regular and consistent communication

 Standardize the interfaces rather than trying to decide on granularity of services

 XBRL  XBRL document editing tools  XBRL processing engine

 Enterprise Service Bus  Translation  Mediation

 SOA Registry/Repository

 Business Process Management

© FUJITSU Limited 2009 Fujitsu’sFujitsu’s XBRLXBRL ExpertiseExpertise  Leadership in XBRL Consortium  US, Spain, France, Korea and Japan  At large member - Intl Consortium  Chaired Spec WG; Member of Best Practice Board

 Leading XBRL Specification Efforts  Contribution to the latest development (FRTA, FRIS, LRR, dimensions, formula, versioning and conformance suite)

 Worldwide deployment of XBRL  Participation in multiple pilot projects and taxonomy development projects all over the world  Offering XBRL tools for consortium (200+ downloads each month)  Interstage XWand used regulators, filing agents, independent software vendors and enterprises around the world

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