Environmental Accounting

Beginning in fiscal 1998 (ended March 31, 1999), we have introduced an environmental accounting system to provide a quantitative picture of environmental protection-related costs and benefits, and to assess environmental investments and their effectiveness. Our goal in introducing this system is to disseminate information to interested parties and demonstrate our commitment to systematically carrying out effective environmental measures on a long-term basis.

1. Cost/Benefit Trends

(Billion Yen)
	FY 1996 Costs/Benefits	FY 1997 Costs/Benefits	FY 1998 Costs/Benefits	FY 1999 (estimate) Costs/Benefits
Fujitsu	7.6 / 6.3	7.9 / 8.3	7.9 / 9.8	8.5 / 11.0
Major subsidiaries	-	-	6.8 / 8.4	7.0 / 9.0
Total	7.6 / 6.3	7.9 / 8.3	14.7 / 18.2	15.5 / 20.0

* Notes:
Costs are based on the Environmental Protection Agency's "Guidelines for Understanding and Publicizing the Costs of Environmental Conservation." Benefits are determined according to Fujitsu's "Guidelines for Environmental Accounting."

2. Breakdown of Results for Fiscal 1998

(Billion Yen)
Costs	Details	Fujitsu	Major Subsidiaries	Total
Direct Costs	Costs of environmental protection to maintain production activities (Introduction of environmental facilities, maintenance expenses, etc.)	4.2	3.6	7.8
Indirect Costs	Environmental promotion activities (personnel costs), obtaining EMS certification, maintenance expenses)	1.1	1.5	2.6
Energy Conservation  Costs	Costs for energy conservation measures	0.8	0.1	0.9
Recycling Costs	Costs for collection of products and remanufacturing	0.2	0.2	0.4
	Waste Processing	0.8	0.8	1.6
Research and  Development  Costs	Costs for developing environmentally friendly products and environmental technology	0.1	0.2	0.3
Costs for Public  Information	Costs for promotion of green spaces, creation of environmental reports, and environmental publicity	0.2	0.3	0.5
Other	Costs for dealing with environmental risks, such as restoration of polluted soil and anti-dioxin measures	0.5	0.1	0.6
Total		7.9	6.8	14.7