Management Direction
1. Basic Stance of Company Management
With the continuing development of ubiquitous networking, information technology has come to permeate nearly every aspect
of our daily lives, greatly increasing convenience and producing dramatic changes. With the rapidly-expanding range of IT
applications, the role of IT systems is becoming even more important, growing from infrastructure support in business and
the public sector to become a new "lifeline" for both business and public sector entities.
The expansion of networking is accelerating not only the globalization of our customers' businesses but also the IT industry
itself.
In this context, the Fujitsu Group sees its own continued global expansion as essential to maintaining and increasing growth
and competitiveness. We will strive to aggressively expand the global reach of our activities, aiming to optimally meet the
needs of our customers by providing globally integrated services and products.
The range of business applications of IT is in the process of expanding from its role in enhancing the effectiveness of management
to supporting frontline operations. At Fujitsu, we are discovering new roles for IT in many of the activities of business
and daily life. We have proposed the concept of field innovation, which aims for the continual improvement of processes and
IT with a focus on people, and we are working to develop leading-edge technologies and services that lead to innovations in
our customers' businesses.
Based on the belief that the operational stability of systems is what creates system value, we are making redoubled efforts
to ensure that we can provide on a global level the outsourcing and other services needed to assure high levels of overall
system reliability.
The Fujitsu Group continually seeks to create new value by constantly providing customers with the total solutions they demand
based on high-reliability, high-performance products and services derived from our powerful technologies. Through this, we
aim to grow, realize profits and foster mutually beneficial relationships with international and local society. Based on a
thorough understanding of the environments in which our customers operate, the overall nature of their operations, and their
business challenges, we create and deploy IT solutions that contribute to the growth and development of their businesses.
In so doing, from our global operations to our deeply-rooted regional operations, we seek to grow together with our customers
as a valued and trusted business partner contributing to their businesses.
2. Medium-Range Business Strategy and Priority Tasks
Worldwide investment in IT is growing at a steady level, led by demand from the services sector and supported by economic
growth worldwide. Although not quite as robustly as abroad, the Japanese market is also on a recovery trend. In order to ensure
that our results fully benefit from the healthy economic environment and strength of IT demand, we will continue to strive
to increase the speed and global reach of our business.
On the other hand, although we see increased sales volume in the product businesses, we foresee a demand shift towards low-priced
products resulting from such factors as advances in the performance of servers and network equipment, as well as lower prices
for components, such as hard disk drives (HDDs) and electronic devices, due to intensifying competition. Thus, we anticipate
that our operating environment will remain difficult going forward.
Given this challenging environment, we are striving to improve earnings capacity by raising the overall efficiency of our
business, expanding business in the high-growth regions of EMEA, Asia and the Americas and enhancing high added value services
to achieve steady profitable growth.
2-1. Technology Solutions
The Fujitsu Group is aiming for a higher level of growth through the expansion of global services firmly based on the foundation
of advanced technology and high-quality products.
By taking full advantage of the system of heads of Regional Operations for EMEA, the Americas, APAC and China which we deployed
this fiscal year, we are moving to deploy an optimized global organization. Our aim is to provide a globally integrated and
consistent customer support system for our products and services worldwide to augment our capabilities in Japan.
In order to expand the global capacity of the Group as a whole to achieve these goals, we will continue this fiscal year also
to build out our lineup of products and services in the US and Europe through further acquisitions. In India, as well, we
will have established a new base aimed at upgrading our offshore capabilities.
Through our global service partnering agreement with SAP of Germany, we are now able to offer SAP based solutions on a global
basis. We have also already begun shipping worldwide the new UNIX server resulting from our joint development program with
Sun Microsystems, Inc.
Turning to services, our objective is to increase profitability by further strengthening and expanding outsourcing services
focused on systems management and security services to provide support to customers throughout the overall lifecycle. In the
Solutions/SI Business sub-segment, while continuing to bolster our risk management capabilities, we will also be working to
strengthen human resources development for upstream processes, expand deployment of the Toyota Production System and expand
offshore capabilities. In Japan we will enhance customer relationships and strengthen solutions capabilities by centralizing
our consulting business in Fujitsu Research Institute.
In the product business, in addition to further progress in integrating production with sales, we will aim to streamline and
strengthen our product lineup. We will also work to raise the efficiency of system product delivery through the promotion
of "industrialization" based on standardization and automation.
2-2. Ubiquitous Product Solutions
In Ubiquitous Product Solutions, we will pursue global operational reach as an independent business. For the PC business we will aim to improve profitability by offering products that are truly differentiated in terms of quality, security and AV functionality and to grow the business on a global basis. We see mobile phones as a key device in the future ubiquitous networking society that brings together multiple leading-edge technologies, including wireless technologies, and will be further strengthening a growth strategy focused on melding the mobile phone and the PC. Our aim for our HDD business is to maintain the high-quality profile of our brand and, through early introduction of new technologies such as vertical magnetic recording, boost cost competitiveness and increase profitability.
2-3. Device Solutions
In the Device Solutions segment we are following our basic strategy of growing the business by maintaining a balance between advanced technology products and basic products. In order to expand business on a global basis, we will work to strengthen our sales force, with a special focus on Asia. In order to strengthen front-end processing capacity in basic products, we have acquired Spansion Japan's plant in Japan and will also work to boost overall production efficiency by consolidating our plants' handling of back-end processes. Turning to advanced technology products, in order to further strengthen the New-IDM model, we will be putting additional effort into bolstering software development. In order to provide a total solution encompassing not only chips but also components, such as modules and circuit boards, we will promote synergies with our affiliate companies. We will also move forward with new investment in production facilities for advanced LSI logic devices, but will carefully review all investment decisions on an ongoing basis, taking into account current demand trends.
2-4. Corporate Initiatives
In addition to the strategies for individual businesses introduced above, in order to accelerate business development on a
global basis, we will continue working to expand our business by taking advantage of appropriate acquisition opportunities
and promoting the advancement of overseas management. We will also seek to further strengthen our alliances with leading overseas
venders.
We will continue the campaign we have already initiated for manufacturing innovation, and will, at the same, time focus on
eliminating waste in every facet of company activities and initiate new company-wide efforts to cut costs and promote ecologically
beneficial activities.
We will also work to create now revenue sources by offering, as services to third parties, elements of internal processes
in which the Fujitsu Group has distinctive capabilities. In fact, we have already established a new company that exploits
our superior technology and know-how in the rapid development of logic LSI devices and in reliability assessment and analysis
of components and materials. Through the new company, we are making this expertise available an outsourced service to our
customers.
Turning to environmental activities, the Fujitsu Group has developed its "5th Environment Action Plan," which outlines the areas and targets for our environmental activities for the three years from
fiscal 2007 through fiscal 2009 and sets forth the details of the initiatives we will undertake. One key activity will be
the strengthening of initiatives aimed at increasing the environmental friendliness of our products and services through the
expansion of Super Green Products. We also take seriously our responsibilities with respect to global warming, and in addition
to the measures we have already begun to take in terms of factory infrastructure, we will expand the scope of our actions
in this area by also promoting environmental activities for our offices as well by setting environmental activity assessment
standards for offices. We will also contribute to CO2 reduction on the part of our customers by developing and offering to them products and environmental solutions that reduce
energy consumption.
Through an accumulation of persistent and continuing efforts, we will successfully address the various challenges mentioned
above, strive to be a trusted partner to our customers, and continue to reform our operations to position ourselves as global
company that is contributing to a rich and vibrant networking society.
