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Fujitsu Revises FY2008 Earnings Projections, Planned Dividend Payment

Fujitsu Limited

Tokyo, February 17, 2009

Fujitsu Limited announced today that it has revised its consolidated earnings projections and planned year-end dividend payment for fiscal 2008, previously announced on January 30, 2009.

1. Revised Consolidated Earnings Projections for FY 2008
(April 1, 2008 – March 31, 2009)

(Billion Yen)
  Net Sales Operating Income Net Income/Loss
Previous Projection (A) 4,700.0 50.0 -20.0
Current Projection (B) 4,700.0 50.0 -50.0
Change (B-A) - - -30.0
Percent Change - - -
Results for FY 2007 5,330.8 204.9 48.1

Reasons for Revisions to Earnings Projections:

There have been no changes made to projections for full-year net sales and operating income. The net loss projection, however, has been revised to 50.0 billion yen, a deterioration of 30.0 billion yen compared with the previous forecast in January, resulting from expected one-time losses related to the transfer of the company’s hard disk drive (HDD) business.

After careful consideration of options for restructuring the HDD business, the company has reached agreements to sell its HDD drive business to Toshiba Corporation and its HDD media business to Showa Denko K.K. As a result of the business transfers, costs of approximately 30.0 billion yen are projected in relation to assets and liabilities not covered under the transfers, along with the pensions of employees transferred. For the full year, the losses related to reorganization of the HDD business are expected to total about 35.0 billion yen, including an impairment loss recognized in the third quarter for the discontinuation of the HDD head business, which was announced on January 27, 2009.

For detailed information on the transfers of the HDD drive and HDD media businesses, please refer to the following press releases:

“Fujitsu and Toshiba Agree on HDD Business Transfer” (February 17, 2009)
“Fujitsu and Showa Denko Agree on HDD Media Business Transfer” (February 17, 2009)
“Fujitsu to Discontinue HDD Head Business” (January 27, 2009)

2. Revised Year-End Dividend

Dividend Per Share
Record Date Interim Year-end Annual Basis
Previous Projection
(as of January 30, 2009)
- 5 yen 10 yen
Current Projection - 3 yen 8 yen
Dividend Payment 5 yen - -
FY2007 Dividend Payment 3 yen 5 yen 8 yen

Reason for Revision to Planned Dividend Payment:

Fujitsu Limited maintains a basic policy of paying a portion of retained earnings to shareholders to provide a stable return on investment, and retaining a portion to strengthen its financial base and support new business development opportunities that will result in improved long-term performance.

Due to the severe financial outlook, the company plans to lower the planned year-end dividend from 5 yen to 3 yen per share. Combined with the interim payment of 5 yen, the planned annual dividend is 8 yen per share, on par with the previous year.

In January, the company reduced the bonuses of corporate executive officers after announcing that it had lowered the full-year operating income projection by 100.0 billion yen and projected a net loss of 20.0 billion yen for the year, due largely to deteriorating performance in the Ubiquitous Product Solutions and Device Solutions business segments. However, taking into further account the worsening of the net loss projection as a result of the HDD business restructuring, along with the planned reduction of dividends, from February the company has increased the percentage reduction to the bonuses in order to instill a greater sense of urgency.

* These materials may contain forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors:
- General economic and market conditions in key markets (particularly in Japan, North America, Europe, and Asia, including China)
- Rapid changes in the high-technology market (particularly semiconductors, PCs, mobile phones, etc.)
- Fluctuations in exchange rates or interest rates
- Fluctuations in capital markets
- Intensifying price competition
- Changes in market positioning due to competition in R&D
- Changes in the environment for the procurement of parts and components
- Changes in competitive relationships relating to collaborations, alliances and technical provisions
- Potential emergence of unprofitable projects
- Changes in accounting policies

About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3 trillion yen (US$53 billion) for the fiscal year ended March 31, 2008. For more information, please see:

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Company:Fujitsu Limited

All other company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.

Date: 17 February, 2009
City: Tokyo
Company: Fujitsu Limited, , , , ,