FUJITSU LIMITED Annual Report 2011 Annual Report EXpandinG WOrld, NEW POssiBILITIES FUJITSU LIMITED ANNUAL REPORT 2011 Fujitsu expresses its deepest sympathies to those affected by the Great East Japan ­Earthquake that struck on March 11, 2011, The Fujitsu Group’s Pledge to Customers and hopes for their return to Brand Promise normal life as quickly as possible. Inherent to this pledge is our commitment to society and customers that we will work with them to bring about a prosperous future. In the wake of the disaster, the Fujitsu Group chose Embodying the concept of dialogue with customers, the to dedicate itself to supporting the restoration of shape of the brand’s graphic design originates from the “F” in Fujitsu’s logo. It also makes an excellent bookmark. social infrastructure. In parallel with recovery of its own damaged production sites, the Group sought to assist in getting lives and businesses in the FUJITSU LIMITED ANNUAL REPORT 2011 affected area back to normal as quickly as pos- sible. The Group has therefore worked to restore customers’ ICT systems, offered free of charge a special cloud computing support program, pro- vided PCs to evacuation centers, and presented monetary donations. Intrinsic to the Fujitsu brand promise “shaping tomorrow with you” is a commit- ment to work with society and customers to bring THE WORLD OF NEW POssiBILITIES about a prosperous future. To this end, the entire To page 002 Fujitsu Group is concentrating its collective ener- gies to quickly achieve recovery in the aftermath of this tragic disaster, and to leverage ICT to aid in FROM THE FRONTIERS OF THE CLOUD COMPUTING the creation of a new Japan. Business To page 028 CONTENTS MANAGEMENT FOCUS 002 THE WORLD OF NEW POssiBILITIES 024 SPECIAL FEATURE Fiscal 2011 ManaGEMENT DirectiON —HUMAN CENTRIC INTELLIGENT SOCIETy— 027 Fujitsu GROUP’S RESPONSE TO THE Great East Japan 010 Financial HIGHLIGhts EarthQuake 012 A MessaGE FROM ManaGEMENT 028 FROM THE FRONTIERS OF the CLOUD COMPUTING Michiyoshi Mazuka Chairman Business —INTRODUCING EMPLOYEES— Masami Yamamoto President 014 A CONVersatiON WITH THE PRESIDENT PERFORMANCE Masami Yamamoto President 030 Business OVERVIEW 022 A MessaGE FROM THE CFO 032 OperatiOnal REVIEW AND OUTLOOK Kazuhiko Kato Corporate Executive Vice President and CFO 048 MajOR AnnOuncements and IR ActiVities in Fiscal 2010 050 InitiatiVES BY REGION M anage M ENT Fujitsu’s Pledge to Customers: The Significance of Our Brand Promise A brand promise expresses the value a company delivers to its customers. The Fujitsu Group’s brand promise, “shaping tomorrow with you,” articulates the importance Fujitsu places on working with its customers to contribute to their success, building long-term partnerships, and harnessing the power of focus information and communication technology to enable people to expand their possibilities. The Fujitsu Group today consists of 535 consolidated group companies employing approximately 170,000 people who operate in over 100 coun- tries around the world. Fujitsu seeks to further differentiate itself as an attractive partner to its customers through each employee’s endeavors to make the promise of “shaping tomorrow with you” a reality in every aspect of Fujitsu’s businesses. Fujitsu will strive to strengthen its brand worldwide as it transforms into a truly global company. PERFOR M ANCE FROM THE FRONTIERS OF THE CLOUD COMPUTING BUSINESS To page 028 THE WORLD OF NEW POSSIBILITIES THE WORLD OF To page 002 RESPONSIBILITY NEW POSSIBILITIES To page 002 058 RESEARCH & DEVELOPMENT 074 CORPORATE GOVERNANCE 061 THE STORY BEHIND THE SHIPMENT OF THE NEXT- 087 BUSINESS AND OTHER RISKS GENERATION SUPERCOMPUTER SYSTEM 062 INTELLECTUAL PROPERTY FACTS & FIGURES 091 FINANCIAL SECTION RESPONSIBILITY FACT 140 DIRECTor’s RESPONSIBILITY STATEMENT PURSUANT 064 OUR CORPORATE PHILOSOPHY TO THE U.K. DTR4 S —FUJITSU Way 141 MANAgement’s REPORT ON INTERNAL CONTROL & FIGURES 066 ENVIRONMENTAL AND SOCIAL AcTIVITIES OVER FINANCIAL REPORTING 070 MANAGEMENT 072 ON STRENGTHENING CORPORATE GOVERNANCE 143 PRINCIPAL SUBSIDIARIES AND AFFILIATES 144 Shareholders’ DATA FUJITSU LIMITED ANNUAL REPORT 2011 001 In this feature, we introduce the role that Fujitsu’s advanced technologies and solutions are playing in realizing a “Human Centric Intelligent Society”, along with comments from Fujitsu employees who support these efforts. Toshifumi Obayashi Manager Technology Div. Telematics Services Business Unit 002 FUJITSU LIMITED ANNUAL REPORT 2011 Striving to Develop the World’s Most User-Friendly Smartphone M anage I’m involved in smartphone product development. We are setting Fujitsu apart in the market by putting technology honed over the years in models like Raku-Raku Phone to use in smartphones. M Because smartphones are so intimately connected to people’s lives, the approach we emphasize is ENT to make them human centric and easy to use. In addition to improving their basic functionality, we work to make our smartphones versatile enough to adapt to the usage environment and the indi- vidual characteristics and behavior of the user. More specifically, our focus has been on three points: visibility enhancement, to make “point and shoot” moments happen smoothly and with stunning clarity; stress-free, intuitive operability; and making it easy for anyone to hear during voice calls anytime and anywhere. We concentrated, for example, on having volume and sound quality adjust automatically during calls in places with lots of background noise or while moving to make calls easier to hear. Another unique Fujitsu advantage is handset models that are waterproof, yet feature stylish exterior design. The most compelling aspect of my job is having to respond in a timely fashion to the blazingly fast pace of market changes, while at the same time being a catalyst for those very same changes. Our aim is to develop the most user- friendly smartphones in the world, not only looking at functionality, but with an eye toward exterior beauty and design as well. Ken Hayashida Director Mobile Phone Product Marketing Dept. I DOCOMO smartphone F12C—water-resistant, Marketing Div. compact, easy to use and packed with features Mobile Phones Unit Next-generation supercomputer system* Datacenters: Leveraging cloud shows promise in delivering synergies infrastructure to create new businesses with the cloud computing business Cloud computing* technology is the key to advancing The range of fields for the application of ICT has ICT utilization in new fields. Fujitsu datacenters use ICT broadened, ushering in a dramatic increase in unprec- to generate new businesses by funneling massive edented services. This trend will likely open up a vast volumes of diverse real-world data into cloud plat- new scope of applications for supercomputers capable forms, then by performing analysis of this data make of high-speed processing of large-scale, complex it more visually intuitive. Moreover the results that calculations. Applying CPU (central processing unit) emerge can be leveraged in the real world. technology developed for supercomputers to other * See pp. 028–029 for an introduction to employees support- areas will allow Fujitsu to enhance the competitive- ing the cloud computing business. ness of servers, storage and other offerings, and is expected to yield synergies with the massive data processing demands of the cloud computing business. * For more on supercomputers, see “The Story Behind the Shipment of the Next-Generation Supercomputer System” on p. 061 New machine room at the Fujitsu Tatebayashi System Center Striving to Take Society a Step Forward by Mining Diverse Data for Information of Real Value to People There are many forms that the “Human Centric Intelligent Society” could potentially take. One that I’m hoping for is a society that delivers the services and information that people need in a timely manner while they are on the go. Achieving this requires knowing a person’s location and surrounding environment in real-time, then formulating and providing information of value as a service to that person in consideration of their circumstances. We opted to turn our attention to the position data aspect of this issue, which led to the development of a new service called SPATIOWL. SPATIOWL is a cloud computing environment for achieving real-time services tailored to a person’s location. Positioning is determined by gathering data on the position of people and vehicles, as well as information on the local surroundings collected via sensors. Fujitsu uses this environment to generate traffic information in real-time based on a vehicle’s location. Corporate and group customers can also leverage the environment provided by SPATIOWL and information generated by Fujitsu to develop information provision services suited to people’s movements. This information could also be useful in urban planning proposals and the delivery of new services to local residents. These are just a few examples of the unique service development and new value creation potential that position data utilization can offer. We are constantly in search of new business models and technologies that will enable previously unimagined services. There is no tried-and-true map for getting there, which leaves developers with an extremely challenging mission. With that said, I’m determined to give my best to moving a step closer to a society that people find more enjoyable. FUJITSU LIMITED ANNUAL REPORT 2011 003 Mobile base stations ready for LTE, the next-generation mobile communications standard Fujitsu is providing