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Statement of Management Direction
Fujitsu's Basic Business Stance
Although severe conditions are expected to persist for some time in the IT industry, there are undoubtedly strong prospects for growth in the medium term and beyond. There remains considerable room for greater utilization of IT in corporate business operations and, in light of today's rapid rate of technological development, we can expect significant expansion in the use of IT in many new fields. Proposing new ways to use IT will help spur new areas of demand. We at the Fujitsu Group are committed, now and in the future, to providing total solutions comprised of high-quality products and services based on the most advanced and dependable high-performance technology, and thereby helping to realize the network society of tomorrow. As an IT industry leader, we will also work to open up new markets by striving to see things from our customers' perspectives and helping them to benefit from utilizing the latest advances in IT.
Business Strategy and Priority Measures
Striving to enhance our customer-focused approach to be able to respond to changing market and customer requirements, and in order to achieve our goals of continuous growth and improved profitability, we are pursuing the following business strategy and priority measures:
- Advancing the Software & Services Dimension of Our Entire Business
In line with the growing importance of software & services in the market, we are stepping up our efforts to heighten the software and services dimension of all our business operations. In our software & services business, we are focusing on the development and operation of customers' systems, broadening our services lineup with an array of offerings in such areas as consulting, training and security diagnostics, all aimed at easing customers' burdens and improving convenience. Along with growing our business in this fashion, we are working to improve sales consistency and profitability. In addition, in the area of software reusability, we are working to maximize productivity through the promotion of packaged solutions and software componentization. Moreover, in regard to our product businesses, where software is increasingly important in development work, we are striving to enhance added value by taking advantage of our strengths in software development and expanding the scope of product-related services, such as installation support, monitoring and performance diagnostics.
- Strengthening Our Platforms Business
Integrating our former information processing and telecommunications divisions into a new Platforms Business Group, and taking a comprehensive approach that includes strengthening the competitiveness of individual products while tightening links and fusion among server, storage and network systems, we are working to achieve even higher levels of overall system reliability and scalability, as well as increase our overall competitiveness.
- Strengthening Our Electronic Devices Business
By concentrating leading-edge semiconductor design and process development at our Akiruno Technology Center, strengthening the links between research and product development divisions, increasing development speed and efficiency, and enhancing our customer applications development capability, we are working to strengthen our position in the System LSI (System-on-Chip) market.
- Strengthening Our Management Structure
To make management more dynamic and flexible, we are revising our corporate governance structure. For example, we have introduced a system of Corporate Executive Officers that is designed to strengthen Board members' management oversight function and expedite the decision-making process by transferring operational authority to Corporate Executive Officers. In addition, through the introduction of a new Business Group organization, we are pursuing an "organic management" style that will enable resources to be allocated more flexibly within the Business Groups and encourage greater synergy among their constituent Business Units.
- Other Business Reform Measures
We will redouble our efforts to reduce fixed costs and tighten inventories. In addition, recognizing that human resources are our greatest assets, we are taking a more strategic approach to personnel development that includes the establishment of Fujitsu University, which has a mandate to cultivate professional expertise and business leadership as well as strengthen the fundamental skills of our employees.
- Protecting the Environment
Under the banner of "Focused on the Green," the Fujitsu Group worldwide is vigorously promoting environmental activities and continuously striving to lighten the environmental impact of every operation.
Through unceasing efforts to accomplish these goals, we intend to position ourselves as a global enterprise that is contributing to the creation of an abundant and dynamic network society and that enjoys the trust of the customers and communities we serve around the world.
Our Position Regarding Lowering of Minimum Tradable Share Units*
Recognizing that participation in the equity market by individual investors can help promote the vitality of the market as well as foster a stable base of long-term Fujitsu shareholders, we have implemented a pro-active investor relations program aimed at making accurate company information available on a regular and timely basis.
Although reducing the minimum number of shares that individuals could trade would help promote the participation of individual investors in capital markets and be one effective means of increasing stock liquidity, taking into consideration the current level of Fujitsu's shares, the total number of shareholders and proportion of individual shareholders, as well as the liquidity of Fujitsu's shares in the market, we believe it would be premature at present to do so.
We will review this stance as appropriate, taking into consideration future trends regarding individual investors in the capital markets as well as changes in the price of our shares and other factors.
* Refers to current practice in which Fujitsu's shares may only be traded in units of not less than 1,000 shares.
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