euro adhoc: Fujitsu Limited
Quarterly or Semiannual Financial
Statements
Fujitsu Reports FY2003 First Quarter Financial
Results
Lower Sales Posted, But Orders In Line With Expectations (E)
Elimination (490.0) (490.0) -
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Fujitsu Reports FY2003 First Quarter Financial Results
Lower Sales Posted, But Orders In Line With Expectations
Tokyo, July 29, 2003 - Fujitsu Limited, a leader in customer-focused IT and communications solutions for the global marketplace, today reported consolidated net sales of 938.7 billion yen, approximately US$7.8 billion*, for the first quarter of fiscal year 2003 (April 1 -June 30, 2003), a 4.5% decrease from the first quarter of fiscal 2002. Lower sales of platforms products and other factors contributed to the overall decline in sales. While the company is reaping the benefits of lower fixed costs stemming from the restructuring initiatives implemented last year, the impact of lower sales resulted in an operating loss of 37.8 billion yen.
Weakness in the equity market led to higher pension obligation expenses and damages sustained in an earthquake that occurred off the coast of Miyagi Prefecture in May resulted in an extraordinary charge of 4.7 billion yen. These items, however, were offset by a turnaround in equity in earnings of affiliates to 1.8 billion yen and a 26.9 billion yen gain on sales of marketable securities resulting from the sale of a portion of the company's shares in Fanuc. The consolidated net loss was 39.8 billion yen, representing a narrowing of the first quarter loss in the previous year of 56.4 billion yen.
To date, Fujitsu's sales orders are in line with anticipated levels, and the company's financial projections for the full year remain unchanged.
Results by Business Segment
1. Software & Services
Three months ended June 30
FY2003 Change Net Sales (Billion Yen) FY02 to FY03 Japan 266.0 +4.2% Overseas 117.2 - 6.7% Total 383.3 +0.6% Operating Profit (3.6) -4.5 billion yen
Net Sales Solutions/SI 154.8 +6.1% Infrastructure Services 228.5 -2.8%
In Japan, although IT spending overall remained sluggish, the company achieved a 4% sales increase due to strong sales in the government, manufacturing and healthcare sectors, compared to the first quarter of fiscal 2002. Sales in the U.S. decreased, reflecting the overall weakness in IT spending. In the U.K., however, last year's sale of unprofitable businesses resulted in improved profitability, although sales were lower compared to the previous year. Profitability in this segment deteriorated in the first quarter as a result of seasonal factors impacting sales, weak market conditions, and higher expenses associated with Linux development costs and other factors.
Solutions/Systems Integration
Sales of solutions and systems integration services increased, bolstered by continued strength in the public sector field in connection with the roll-out of the e-Japan initiative and sales of solutions, such as supply chain management and enterprise resource planning software, such as GLOVIA, particularly to manufacturers that are expanding their global operations. An increase in marketing expenses for solutions, however, held operating income at a level roughly equivalent to last year's results.
Infrastructure Services
The company posted lower sales of infrastructure services in the first quarter. The corporate outsourcing business had a strong quarter, but sales of server-related software & services remained weak. As broadband network infrastructure has grown more pervasive, the market for corporate network services is expanding, but price competition is also intensifying, putting pressure on profit margins.
At U.K. subsidiary Fujitsu Services, the decision to exit unprofitable businesses last year has resulted in lower sales but a sharper business focus. That sharper focus, along with contributions from new orders from the government associated with the private finance initiative, has returned that unit to profitability.
FY2003 Earnings Projections for Software & Services
FY2003 Change
(Billion yen) FY02 to FY03
Net Sales 2,120.0 +4.7%
Operating Profit 190.0 +13.4 billion yenSolutions/SI 1,015.0 +7.9% Infrastructure Services 1,105.0 +1.8%
The spread of broadband networking clearly expands business opportunities for Fujitsu in this sector, and the company is well-positioned to take advantage of these trends. In overseas markets, while circumstances differ depending on the individual operating entity, the company anticipates being able to meet the earnings projections announced at the start of the fiscal year. While there is some concern over the intensified price competition accompanying the market shift toward open standards, the company is also optimistic about its plans to release a stream of new software & services products linked with new hardware offerings under its TRIOLE IT infrastructure initiative. Taking these factors into account, Fujitsu's earlier earnings projections for the full year remain unchanged.
2. Platforms
Three months ended June 30
FY2003 Change
(Billion Yen) FY02 to FY03
Net Sales 312.2 -17.6%
Operating Income (Loss) (19.4) -6.4 billion yenNet sales by product segment FY2003 Change (%)
(Billion Yen) FY02 to FY03
PCs & Mobile Telephones 140.0 -7.0
Telecommunications 73.7 -19.1
(Transmission Equipment) (36.4) (-23.5)
Servers 65.1 -30.4
HDDs 33.3 -23.8The company posted strong sales of consumer PCs, and the strong yen also helped to contain costs. In mobile phones, a delay in the shipment of a new model until July resulted in lower sales than projected in the company's initial plans in April. In optical transmission systems, sales of earlier models of equipment in the U.S. and other markets declined sharply, but the effect of lower fixed costs stemming from the restructuring efforts implemented last year helped to trim operating losses.
In servers, although sales in overseas markets are growing, large-scale orders in Japan from such sectors as telecommunications and finance were minimal, leaving overall sales sharply lower compared to the first quarter of last year.
Sales of small form-factor hard disk drives declined, in part because of delays in shipping new models of hard drives for servers, but the operating loss has been reduced by the impact of lower fixed costs resulting from last year's restructuring initiatives.
FY2003 Earnings Projections for Platforms
FY2003 Change
(Billion Yen) FY02 to FY03Net Sales 1,610.0 -0.1% Operating Income 15.0 +14.0 billion yen
In PCs, by getting a jump on competitors in introducing new summer models with improved audio-video functions, Fujitsu was able to increase both unit shipments and market share. While the increase in shipment volumes is expected to carry through for the full year, the company also anticipates intensified price competition, and therefore projections for operating income remain unchanged.
In mobile phones, although there was a delay in shipping a new handset model equipped with a high-resolution camera, that model will be introduced in the second quarter, and the company expects to meet its original projections for sales and unit volume shipped for the full year. With respect to profitability, although unit volumes will increase, there are also higher production costs associated with more sophisticated product functions, the impact of which is already reflected in the company's projections.
In transmission systems, with a delayed recovery in capital spending among both foreign and domestic telecom carriers, the company anticipates that sales will be lower than last year's levels. On the other hand, in North America, shipments of the next generation optical transmission equipment for Verizon Communications and other telecom operators are materializing, and, with the impact of lower fixed costs stemming from last year's restructuring, the company anticipates a substantial narrowing of operating losses.
In servers, while shipments of new models have been strong in Europe, those in the U.S. have been slower than anticipated. In the second quarter, volume shipments will begin in Japan for a new low-priced server based upon Fujitsu's new TRIOLE IT infrastructure, which will enhance the company's ability to deal with price competition and is expected to make a solid contribution to sales and operating income.
In small form-factor hard disk drives, shipments for notebook PCs are strong, and the business unit is expected to return to profitability for the full year.
3. Electronic Devices
Three months ended June 30
FY2003 Change
(Billion Yen) FY02 to FY03
Net Sales 162.6 +14.5%
Operating Income (Loss) (6.1) +1.2 billion yenNet sales by product FY2003 Change(%) segment (Billion Yen) FY02 to FY03 Semiconductors 90.3 +14.3 Others 72.3 +14.9
Fujitsu has had a flash memory joint venture with U.S.-based Advanced Micro Devices, Inc. (AMD), and to realize greater efficiencies and strengthen their competitiveness in this sector, the two companies have decided to integrate their operations, including marketing and R&D. Toward that end, on June 30 the two companies established a new joint venture, with Fujitsu's equity share at 40% and AMD's at 60%, into which both companies have transferred their entire flash memory operations, including their production facilities. With integrated operations extending from R&D to production dedicated solely to the flash memory market, the new venture will have the focus and responsiveness required to succeed in this market. This transaction had no impact on the company's consolidated earnings for the first quarter.
The earthquake that occurred off the coast of Miyagi Prefecture on May 26 inflicted damage to the semiconductor production facilities at the company's Iwate plant. While the facility has been restored to full production, the company incurred a 4.7 billion yen casualty loss as an extraordinary charge in the first quarter. The temporary disruption to production has affected sales and profitability for the first and second quarters.
First quarter sales in this sector overall rose sharply, increasing 14.5% over the same period in the prior year. Although damage from the earthquake had an adverse impact on a portion of sales, sales of semiconductors were up sharply, particularly of chips used in digital audio-visual equipment and mobile phones. Sales of plasma display panels also posted a substantial increase, buoyed by growing demand for plasma display televisions.
The operating loss for the first quarter narrowed by 1.2 billion yen compared to the previous year. Although results were adversely affected by lower prices in some product lines, the positive impact of higher sales, lower fixed costs stemming from previous restructuring initiatives, and stabilized profitability in the plasma display panel business contributed to the sector's improvement.
FY2003 Earnings Projections for Electronic Devices
FY2003 Change
(Billion Yen) FY02 to FY03
Net Sales 710.0 +14.8%
Operating Income 15.0 +46.6 billion yenFull-year projections for sales and operating income remain unchanged. While there is some uncertainty regarding market price trends for some products, the markets for end-products such as PCs and mobile phones equipped with a high-resolution camera are recovering, so the company anticipates a rising trend for sales of semiconductors and semiconductor parts. The company also anticipates a continued strong market for plasma display panels.
Balance Sheet Summary
Total assets at the end of the first quarter were 4,056.2 billion yen, a decrease of 169.1 billion yen compared to the end of the previous fiscal year. A reorganization of the company's flash memory operations and lower trade receivables were the two main factors behind the decrease.
Total current assets were 1,973.8 billion yen, down 97.8 billion yen from the end of the last fiscal year. Inventories increased by 50.6 billion yen, to 646.5 billion yen, partly as a result of the delay in shipping a new mobile phone model until the second quarter, and partly in anticipation of higher sales starting in the second quarter. Trade receivables declined by 166.1 billion yen, to 674.2 billion yen, reflecting the seasonal effect of a concentration of sales in the fourth quarter, generating higher trade receivables, with collection of these receivables during the first quarter.
Total fixed assets were 2,082.4 billion yen, a reduction of 71.2 billion yen compared to the end of prior fiscal year. Property, plant and equipment declined by 106.5 billion yen, to 884.0 billion yen, and investments and long-term loans increased by 40.2 billion yen, to 941.7 billion yen. These changes primarily reflect the shift in the accounting treatment of the company's flash memory operations to the equity method, in accordance with the new joint venture status.
Total liabilities were 3,201.6 billion yen, a reduction of 106.7 billion yen compared to the end of the previous fiscal year. The reduction is primarily attributed to a 128.4 billion yen reduction in trade payables.
Total shareholders'equity declined by 22.9 billion yen, to 679.4 billion yen. Higher equity prices resulted in an increase in unrealized gains on securities, but this was offset by the company's net loss. Because, proportionally, assets contracted by more than shareholders' equity, the shareholders' equity ratio increased by 0.2%, to 16.8%.
Total interest-bearing liabilities increased by 64.3 billion yen, to 1,828.1 billion yen, primarily as a result of posting a net loss and a temporary increase in inventories.
Summary of Cash Flows
Net cash generated by operating activities in the first quarter was negative 85.9 billion yen. There was a narrowing of the loss before income taxes and minority interests compared to the first quarter of the previous year, and a decline in trade receivables through collections. But these factors were offset by the temporary increase in inventories in anticipation of higher sales starting in the second quarter and a decrease in trade payables.
Net cash generated from investing activities was 5.5 billion yen, a 58.9 billion yen improvement compared to the first quarter of the previous year. This improvement resulted from keeping capital expenditures within amount of the depreciation charges taken and the sale of marketable securities.
Therefore, free cash flow was negative 80.3 billion yen, an improvement of 67.3 billion yen compared to the prior year. The negative free cash flow was funded through increased borrowing, primarily through the commercial paper market, and net cash generated from financing activities was 69.7 billion yen. The net decrease in cash and cash equivalents was 9.7 billion yen.
Initiatives to Strengthen Fujitsu's Financial Condition
Fujitsu is undertaking a number of initiatives to wring operating efficiencies out of its core businesses while raising their capacity to generate strong earnings. For example, particularly in its domestic operations, Fujitsu is redoubling its focus on quality manufacturing. It is also organizing its global supply chain management activities for servers, PCs and other hardware around four operation centers in Japan, Singapore, Germany, and the U.S. In addition, it is making organizational changes to enhance its ability to provide services and support to global customers in Japan, North America, Europe, and other Asian markets.
Starting in the second quarter, the company is implementing plans to reduce inventory levels and take other actions designed to enhance the efficiency of asset utilization. Through these measures, by the end of this fiscal year Fujitsu plans to reduce interest-bearing liabilities to a level no greater than 1,500.0 billion yen.
The company intends to quickly restore the strength of its balance sheet by utilizing its existing assets in the most effective manner possible, while restoring the profitability of its businesses.
Earnings Projections for FY2003
Although the disruption in production at one of the company's semiconductor production facilities resulting from the earthquake caused a temporary setback, at present the company's sales orders match the levels anticipated in its original plan. With respect to the company's projections for its mid-term financial results (from April 1 to September 30, 2003), taking into account the extraordinary charge and other effects on earnings resulting from the earthquake, the company is revising its net income projection for the first half only from a net loss of 40 billion yen to a net loss of 50 billion yen. The company's projections for the full 2003 fiscal year remain unchanged from the levels announced in April, with the expectation that this impact on earnings will be offset by recovery in the second half of the fiscal year.
Fujitsu Limited Consolidated Earnings Forecast for Fiscal 2003
(Billion Yen)
Half Year (Apr.1 - Sep. 30) Full Year (Apr.1 - Mar. 31)
FY2002 FY2003 FY2002 FY2003
Net Sales 2,150.3 2,150.0 4,617.5 4,800.0
Operating
Income
(Loss) (23.2) (20.0) 100.4 150.0
Net Income
(Loss) (147.4) (50.0) (122.0) 30.0Note:
- All yen figures have been converted to US dollars for convenience only at a uniform rate of $1=120 yen.
- FY2003 from April 1, 2003 - March 31, 2004; FY2002 from April 1, 2002 - March 31, 2003
- Due to uncertainties relating to changes in demand for products and components in key markets (Japan, U.S., Europe, etc.), currency exchange rate fluctuations, Japan and U.S. stock market conditions, and other factors, actual results may vary substantially from projections above.
Fujitsu Reports FY2003 First-Quarter Financial Results
1. Summary of Consolidated Results (Three months ended June 30)
a. Summary of Consolidated Statements of Operations
Yen U.S. Dollars
(millions) (millions)
(except per share data) (except per share
data)
2003 2002 Change (%) 2003Net sales Y 938,738 Y 982,994 -4.5 $7,823
Operating (37,886) (29,070) - (316) loss
Loss before income taxes and minority interests (32,853) (77,107) - (274)
Net loss (39,808) (56,428) - (332)
Net loss per common share, basic Y (19.90) Y (28.19) - $ (0.166)
b. Summary of Consolidated Financial Condition
Yen U.S. Dollars
(millions) (millions)
June 30 March 31 June 30
2003 2003 2003Total assets Y 4,056,251 Y 4,225,361 $33,802
Shareholders' equity 679,471 702,390 5,662
Shareholders' equity ratio 16.8 % 16.6 %
c. Summary of Consolidated Statements of Cash Flows
Three months ended June 30
Yen U.S. Dollars
(millions) (millions)
2003 2002 2003
Cash flows from
operating
activities Y (85,902) Y (94,364) $ (716)
Cash flows from
investing
activities 5,566 (53,338) 47
Cash flows from
financing
activities 69,719 192,163 581
Cash and cash
equivalents
at end of
period 272,623 339,267 2,2722. Projections for FY2003 (April 1, 2003 - March 31, 2004)
Consolidated Earnings
Forecast Yen
(billions) Change (%)
FY2003 FY2002
(Forecast) (Actual) FY02 to FY03Net sales Y 4,800.0 Y 4,617.5 +4.0
Operating income 150.0 100.4 +49.4
Net income (loss) 30.0 (122.0) -
Note:All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of $1=120 yen.
Consolidated Business Segment Information (Three months ended June 30)
a. Net Sales
Yen U.S. Dollars
(millions) (millions)
2003 2002 Change (%) 2003Software Unaffiliated Y 383,346 Y 380,987 +0.6 $3,195
& Services customers
Intersegment 11,925 11,917 +0.1 $99
Total Y 395,271 Y 392,904 +0.6 $3,294Platforms Unaffiliated 312,249 379,091 -17.6 2,602
customers
Intersegment 41,711 42,549 -2.0 348
Total 353,960 421,640 -16.1 2,950Electronic Unaffiliated 162,646 141,990 +14.5 1,355
Devices customers
Intersegment 16,728 19,456 -14.0 140
Total 179,374 161,446 +11.1 1,495Financing Unaffiliated 20,795 24,768 -16.0 173
customers
Intersegment 1,312 3,161 -58.5 11
Total 22,107 27,929 -20.8 184Other Unaffiliated 59,702 56,158 +6.3 498
Operations customers
Intersegment 31,136 31,378 -0.8 259
Total 90,838 87,536 +3.8 757Elimination (102,812) (108,461) - (857)
Total Y 938,738 Y 982,994 -4.5 $7,823
b. Operating Income (Loss)
Yen U.S. Dollars
(millions) Change (millions)
2003 2002 (Million Yen) 2003Software & Services Y (3,635) Y 866 -4,501 $ (30) (Operating Margin) ((0.9%)) (0.2%) (-1.1%)
Platforms (19,429) (12,976) -6,453 (162)
((5.5%)) ((3.1%)) (-2.4%)Electronic
Devices (6,190) (7,434) +1,244 (52)
((3.5%)) ((4.6%)) (+1.1%)Financing 974 1,548 -574 8
(4.4%) (5.5%) (-1.1%)Other
Operations 2,020 (71) +2,091 17
(2.2%) ((0.1%)) (+2.3%)Elimination (11,626) (11,003) -623 (97)
Total Y (37,886) Y (29,070) -8,816 $(316)
((4.0%)) ((3.0%)) (-1.0%)Consolidated Business Segment Information (Three months ended June 30)
c. Sales to Unaffiliated Customers
Yen U.S. Dollars
(billions) (millions)
2003 2002 Change (%) 2003Software Japan Y 266.0 Y 255.2 +4.2 $2,217
& Services Overseas 117.2 125.7 -6.7 978
Total Y 383.3 Y 380.9 +0.6 $3,195Platforms Japan 216.1 265.0 -18.5 1,801
Overseas 96.1 114.0 -15.7 801
Total 312.2 379.0 -17.6 2,602Electronic Japan 75.6 68.4 +10.4 630
Devices Overseas 87.0 73.5 +18.4 725
Total 162.6 141.9 +14.5 1,355Financing Japan 20.7 24.7 -16.0 173
Overseas - - - -
Total 20.7 24.7 -16.0 173Other Japan 49.0 44.4 +10.4 410
Operations Overseas 10.6 11.7 -9.3 88
Total 59.7 56.1 +6.3 498Total Japan Y 627.6 Y 658.0 -4.6 $5,231
Overseas 311.0 324.9 -4.3 2,592
Total Y 938.7 Y 982.9 -4.5 $7,823d. Sales to Unaffiliated Customers by Products and Services
Yen U.S. Dollars
(billions) (millions)
2003 2002 Change 2003
(%)Software Solutions/SI Y 154.8 Y 145.9 +6.1 $1,290
& Services Infrastructure 228.5 235.0 -2.8 1,905
Total Y 383.3 Y 380.9 +0.6 $3,195Platforms Servers Y 65.1 Y 93.5 -30.4 $542
Mobile
Infrastructure/
IP Network 37.4 43.6 -14.2 312
Transmission 36.4 47.6 -23.5 303
Equipment
PCs & Mobile 140.0 150.5 -7.0 1,167
Telephones
HDDs 33.3 43.7 -23.8 278
Total Y 312.2 Y 379.0 -17.6 $2,602Electronic Semiconductors Y 90.3 Y 79.0 +14.3 $752
Devices Others 72.3 62.9 +14.9 603
Total Y 162.6 Y 141.9 +14.5 $1,355Consolidated Statements of Operations (Unaudited)
Three months ended June 30
Yen U.S. Dollars
(millions) (millions)
2003 2002 Change (%) 2003Net sales Y 938,738 Y 982,994 -4.5 $7,823
Operating costs and expenses: Cost of goods sold 689,561 719,817 -4.2 5,747
Selling,
general and
administrative
expenses 287,063 292,247 -1.8 2,392
976,624 1,012,064 8,139Operating loss (37,886) (29,070) - (316)
Other income (expenses): Net interest (3,119) (4,862) (26)
Equity in earnings of affiliated companies, net 1,860 (3,522) 15
Amortization of unrecognized obligation for retirement benefits (14,446) (11,014) (120)
Casualty loss (4,700) - (39)
Restructuring charges - (25,899) -
Gain on sales of marketable securities 26,974 - 225
Other, net (1,536) (2,740) (13)
5,033 (48,037) - 42
Loss before income taxes and minority interests (32,853) (77,107) - (274)
Income taxes 7,161 (16,619) - 60
Minority 206 4,060 - 2 interests
Net loss Y (39,808) Y (56,428) - $ (332)
Note:
All yen figures throughout these statements have been converted to U.S. dollars for convenience only at a uniform rate of $1=120 yen.
Net interest consists of interest income, dividend income and interest charges. Casualty loss refers to repair expenses incurred to cover damages to property as a result of the earthquake that occurred off the coast of Miyagi prefecture, Japan, on May 26th, 2003.
Consolidated Balance Sheets (Unaudited)
Yen U.S. Dollars
(millions) (millions)
June 30 March 31 June 30
2003 2003 2003Assets Current assets:
Cash and cash equivalents and short-term investments Y 275,603 Y 283,985 $2,297
Receivables, trade 674,230 840,408 5,618
Inventories 646,594 595,984 5,388
Other current assets 377,376 351,263 3,145
Total current assets 1,973,803 2,071,640 16,448
Investments and long-term loans 941,793 901,587 7,848
Property, plant and equipment less accumulated depreciation 884,037 990,552 7,367
Intangible assets 256,618 261,582 2,139
Total assets Y 4,056,251 Y 4,225,361 $33,802
Liabilities, minority interests and shareholders' equity
Current liabilities:
Short-term borrowings Y 609,392 Y 506,091 $5,078 and current portion of long-term debt
Payables, trade 590,802 716,842 4,923
Other current liabilities 489,079 542,291 4,076
Total current liabilities 1,689,273 1,765,224 14,077
Long-term liabilities:
Long-term debt 1,218,709 1,257,678 10,156
Other long-term liabilities 293,671 285,513 2,447
Total long-term liabilities 1,512,380 1,543,191 12,603
Minority interests 175,127 214,556 1,460
Shareholders' equity:
Common stock 324,624 324,624 2,705
Capital surplus 519,720 519,720 4,331
Retained earnings (Deficit) (100,966) (60,718) (841)
Unrealized gains on securities and revaluation surplus on land 16,335 6,090 136
Foreign currency translation (79,419) (86,517) (662) adjustments
Treasury stock (823) (809) (7)
Total shareholders' equity 679,471 702,390 5,662
Total liabilities, minority interests and shareholders' equity Y 4,056,251 Y 4,225,361 $33,802
Ending balance of interest bearing loans Y 1,828,101 Y 1,763,769 $15,234
Supplementary Information
Yen
(billions)
FY2003 FY2002
(Forecast) Change (%)Capital expenditure Y 210.0 Y 147.6 +42.3 Depreciation 210.0 264.6 -20.7
Consolidated Statements of Cash Flows (Unaudited)
Three months ended June 30
Yen U.S. Dollars
(millions) Change (millions)
2003 2002 (Million 2003
Yen)1. Cash flows from operating activities: Income (loss) before income taxes and minority interests Y (32,853) Y (77,107) +44,254 $ (274)
Depreciation and amortization 72,776 88,122 -15,346 606
Increase 1,802 (6,376) +8,178 15 (decrease) in provisions
Equity in (1,860) 3,522 -5,382 (15) earnings of affiliates, net Disposal of property, plant and equipment 2,417 16,911 -14,494 20
(Increase) decrease in receivables, trade 149,470 191,146 -41,676 1,246
(Increase) decrease in inventories (80,902) (45,354) -35,548 (674)
Increase (112,429) (137,956) +25,527 (937) (decrease) in payables, trade Other, net (84,323) (127,272) +42,949 (703)
Net cash provided by (used in) operating activities (85,902) (94,364) +8,462 (716)
2. Cash flows from investing activities: Purchase of property, plant and equipment (39,109) (42,561) +3,452 (326)
(Increase) decrease in investments and long-term loans 57,477 (1,506) +58,983 479
Other, net (12,802) (9,271) -3,531 (106)
Net cash provided by (used in) investing activities 5,566 (53,338) +58,904 47
1+2 ( Free Cash Flow ) (80,336) (147,702) +67,366 (669)
3. Cash flows from financing activities: Increase (decrease) in bonds, notes, short-term borrowings and long-term debt 79,832 281,129 -201,297 665
Dividends paid - (5,005) +5,005 -
Other, net (10,113) (83,961) +73,848 (84)
Net cash provided by (used in) financing activities 69,719 192,163 -122,444 581
4. Effect of exchange rate changes on cash and cash equivalents 907 (4,612) +5,519 7
5. Net increase (decrease) in cash and cash equivalents (9,710) 39,849 -49,559 (81)
6. Cash and cash equivalents at beginning of period 282,333 299,418 -17,085 2,353
7. Cash and cash equivalents at end of period Y 272,623 Y 339,267 -66,644 $2,272
SUPPLEMENTARY FIGURES
I. Forecast for FY2003
1. Consolidated Business Segment Information
(1) Net sales including Intersegment Sales
Yen Yen
(billions) (bill Change
ions)(Billion)
FY2003 (Forecast) Change FY2002 FY02 to
Previous* Revised** (Bill (Actual) Revi
ion ised
Yen) FY03Software Unaffiliated Y 2,120.0 Y 2,120.0 - Y 2,025.7 +94.2
customers
& Services Intersegment 65.0 65.0 - 72.1 -7.1
Total Y 2,185.0 Y 2,185.0 - Y 2,097.9 +87.0Platforms Unaffiliated 1,610.0 1,610.0 - 1,612.0 -2.0
customers
Intersegment 220.0 220.0 - 231.2 -11.2
Total 1,830.0 1,830.0 - 1,843.2 -13.2Electronic Unaffiliated 710.0 710.0 - 618.6 +91.3
Devices customers
Intersegment 60.0 60.0 - 68.8 -8.8
Total 770.0 770.0 - 687.4 +82.5Financing Unaffiliated 110.0 110.0 - 119.2 -9.2
customers
Intersegment 10.0 10.0 - 9.1 +0.8
Total 120.0 120.0 - 128.4 -8.4Other Unaffiliated 250.0 250.0 - 241.8 +8.1
Operations customers
Intersegment 135.0 135.0 - 137.0 -2.0
Total 385.0 385.0 - 378.9 +6.0(518.4) +28.4
Total Y 4,800.0 Y 4,800.0 - Y 4,617.5 +182.4
(2) Operating Income (Loss) including Intersegment Transactions
Yen Yen
Change
(billions) (billions) (Billion)
FY2003 (Forecast) Change FY2002 FY02 to
Previous* Revised**(Billion (Actual) Revised
Yen) FY03Software & Y190.0 Y 190.0 - Y 176.5 +13.4 Services (Operating (8.7%) (8.7%) (-%) (8.4%) (+0.3%) margin)
Platforms 15.0 15.0 - 0.9 +14.0
(0.8%) (0.8%) (-%) (0.1%) (+0.7%)Electronic 15.0 15.0 - (31.6) +46.6 Devices (1.9%) (1.9%) (-%) ((4.6%)) (+6.5%)
Financing 5.0 5.0 - 4.3 +0.6
(4.2%) (4.2%) (-%) (3.4%) (+0.8%)Other 15.0 15.0 - 10.0 +4.9 Operations (3.9%) (3.9%) (-%) (2.6%) (+1.3%)
Elimination (90.0) (90.0) - (59.7) -30.2
Total Y150.0 Y 150.0 - Y 100.4 +49.5
(3.1%) (3.1%) (-%) (2.2%) (+0.9%)
Note: *Previous forecast : as of April 25, 2003 **Revised forecast : as of July 29, 2003
(3) Sales to Unaffiliated Customers
Yen Yen
(billions) (billions) Change
(%)
FY2003
(Forecast) Change FY2002 FY02 to
Prev Revi (Billion (Actual) Revised
ious* sed** Yen) FY03Software Japan Y1,610.0 Y1,610.0 - Y1,506.8 +6.8
& Overseas 510.0 510.0 - 518.9 -1.7
Services
Total Y2,120.0 Y2,120.0 - Y2,025.7 +4.7Platforms Japan 1,090.0 1,090.0 - 1,159.9 -6.0
Overseas 520.0 520.0 - 452.1 +15.0
Total 1,610.0 1,610.0 - 1,612.0 -0.1Electronic Japan 380.0 380.0 - 299.6 +26.8
Devices Overseas 330.0 330.0 - 319.0 +3.4
Total 710.0 710.0 - 618.6 +14.8Financing Japan 110.0 110.0 - 119.2 -7.8
Overseas - - - - -
Total 110.0 110.0 - 119.2 -7.8Other Japan 210.0 210.0 - 195.0 +7.7
Operations Overseas 40.0 40.0 - 46.8 -14.6
Total 250.0 250.0 - 241.8 +3.4Total Japan Y3,400.0 Y3,400.0 - Y3,280.6 +3.6
Overseas 1,400.0 1,400.0 - 1,336.9 +4.7Total Y4,800.0 4,800.0 4,617.5 +4.0
(4) Sales to Unaffiliated Customers by Products and Services
Yen Yen
(billions) (billions) Change
(%)
FY2003
(Forecast) Change FY2002 FY02
to
Prev Revi (Billion (Actual)Revised
ious* sed** Yen) FY03Software Solutions
/SI Y1,015.0 Y1,015.0 - Y940.5 +7.9
& Infrastruc 1,105.0 1,105.0 - 1,085.2 +1.8
Services ture Services
Total
Y2,120.0 Y2,120.0 - Y2,025.7 +4.7Platforms Servers Y 385.0 385.0 - 382.8 +0.6
Mobile
Infrastruc
ture/
IP network 195.0 195.0 - 189.7 +2.8
Transmission 175.0 175.0 - 222.6 -21.4
Equipment
PCs & Mobile 675.0 675.0 - 655.5 +3.0
Telephones
HDDs 180.0 180.0 - 161.4 +11,5
Total Y1,610.0 Y1,610.0 - Y1,612.0 -0.1Elect Semi
ronic conductors Y 400.0 Y 400.0 - Y 349.3 +14.5
Devices Others 310.0 310.0 - 269.3 +15.1
Total Y 710.0 Y 710.0 - Y 618.6 +14.8Note: *Previous forecast : as of April 25, 2003 **Revised forecast : as of July 29, 2003
(1) By Customer's Geographic Location (Million Units)
FY2003 (Forecast)
Previous* Revised** Change FY2002
Japan 2.60 2.65 +0.05 2.47
Europe 3.20 3.13 -0.07 2.97
North America 0.13 0.14 +0.01 0.12
Asia 0.13 0.14 +0.01 0.12
Total 6.06 6.06 - 5.68(2) By Product Category (%)
FY2003 (Forecast)
Previous* Revised** FY2002
Desktop 46 44 47
Notebook 54 56 533. Mobile Phone Shipments
(Million Units)
FY2003 (Forecast)
Previous* Revised** Change FY2002
3.45 3.55 +0.10 3.344. HDD Production
(Million Units)
FY2003 (Forecast)
Previous* Revised** Change FY2002
11.90 11.95 +0.05 8.765. Electronic Devices
(1) Net Sales of Semiconductors
(Billion
Yen)
FY2003 (Forecast)
Previous* Revised** Change FY2002
440.0 440.0 - 398.3
(Internal (40.0) (40.0) (-) (49.0)
use)(2) Composition of Net Sales by Product Category (Semiconductors)
(%)
FY2003 (Forecast)
Previous* Revised** FY2002
Logic 61 61 57
System memory 31 31 36
Compound semiconductor 8 8 7
and others(3) Composition of Capital Expenditure
(Billion Yen)
FY2003 (Forecast)
Previous* Revised** Change FY2002
Total 65.0 65.0 - 60.9(Semiconductors) (35.0) (35.0) (-) (38.0)
(PDP) (11.0) (11.0) (-) (4.2)
(LCD) (1.0) (1.0) (-) (2.3)Note: *Previous forecast as of April 25, 2003 **Revised forecast as of July 29, 2003
6. R&D Expenditure
(Billion
Yen)
FY2003 (Forecast)
Previous* Revised** Change FY2002
255.0 255.0 - 285.7
As % of 5.3% 5.3% - 6.2%
sales7. Capital Expenditures, Depreciation
Yen Yen
(billions) (billions)Change
(%)
FY2003 (Forecast) FY2002 FY02
to
Previous* Revised** Chan (Actual) Revis
ge ed
FY03
Capital
ExpendituresSoftware & 80.0 80.0 - 38.8 +106.1 Services
Platforms 50.0 50.0 - 36.7 +36.1
Electronic 65.0 65.0 - 60.9 +6.7 Devices
Corporate and 15.0 15.0 - 11.1 +34.5 others***
Total 210.0 210.0 - 147.6 +42.3
Japan 180.0 180.0 - 125.6 +43.2
Overseas 30.0 30.0 - 21.9 +36.8
Depreciation 210.0 210.0 - 264.6 -20.7
8. Exchange Rates
Forecast Average Rates for
2nd Quarter of FY2003
Previous Revised Change
$1=120 yen $1=120 yen -
2nd Half of FY2003
Previous Revised Change
$1=120 yen $1=120 yen -Note: *Previous forecast as of April 25, 2003 **Revised forecast as of July 29, 2003 *** Including capital expenditures for the parent's administrative divisions and R&D expenditures, which can not be allocated.
9. Consolidated Statements of Cash Flows
(Billion
Yen)
FY2003 (Forecast)
Previous Revised*** Chan FY2002
** ge
(A) Cash flows from 320.0 320.0 - 117.7
operating activities
(Net (30.0) (30.0) (-)((122.0))
income)
(Depreciati (280.0) (280.0) (-) (343.2)
on *)
(Others) (10.0) (10.0) (-)((103.4))(B) Cash flows from (290.0) (220.0) +70.0 (64.4) investing activities
(C) Free cash flows 30.0 100.0 +70.0 53.3 (A)+(B)
(D) Cash flows from (30.0) (100.0) -70.0 (67.2) financing activities
(E) Total (C)+(D) 0.0 0.0 - (13.8)
Note: *Including amortization of goodwill
**Previous forecast as of April 25, 2003 ***Revised forecast as of July 29, 2003
About Fujitsu
Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and telecommunications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$38 billion) for the fiscal year ended March 31, 2003. For more information, please see: www.fujitsu.com
For details and supplemental information regarding Fujitsu's FY2002 financial results, please see http://pr.fujitsu.com/en/ir/
All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only
This information is provided by RNS
The company news service from the London Stock Exchangeend of announcement euro adhoc 30.07.2003
Contact:
Yuri Momomoto or Scott Ikeda FOR IMMEDIATE RELEASE
Fujitsu Limited, Public and
Investor Relations July 29, 2003
Tel (+81-3) 6252-2174 (Tokyo)
Branche: Hardware
ISIN: JP3818000006
WKN: 0354912
Index:
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