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Fujitsu Limited

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Quarterly or Semiannual Financial Statements
Fujitsu Reports FY2003 First Quarter Financial Results Lower Sales Posted, But Orders In Line With Expectations (E)

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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 yen
Solutions/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 yen
Net 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          -23.8
The 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 FY03
Net 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 yen
Net 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 yen
Full-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)          30.0
Note:
  • 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 (%)       2003
Net 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               2003
Total          
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            2,272
2. Projections for FY2003 (April 1, 2003 - March 31, 2004)
Consolidated Earnings 
Forecast                    Yen
                         (billions)               Change (%)
                  FY2003        FY2002
                (Forecast)     (Actual)          FY02 to FY03
Net 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 (%)    2003
Software   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    $3,294
Platforms  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     2,950
Electronic 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     1,495
Financing  Unaffiliated      20,795      24,768    -16.0       173
           customers
           Intersegment       1,312       3,161    -58.5        11
           Total             22,107      27,929    -20.8       184
Other      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       757
Elimination                (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)     2003
Software &         
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 (%)    2003
Software     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     $3,195
Platforms    Japan          216.1      265.0    -18.5      1,801
             Overseas        96.1      114.0    -15.7        801
             Total          312.2      379.0    -17.6      2,602
Electronic   Japan           75.6       68.4    +10.4        630
Devices      Overseas        87.0       73.5    +18.4        725
             Total          162.6      141.9    +14.5      1,355
Financing    Japan           20.7       24.7    -16.0        173
             Overseas           -          -        -          -
             Total           20.7       24.7    -16.0        173
Other        Japan           49.0       44.4    +10.4        410
Operations   Overseas        10.6       11.7     -9.3         88
             Total           59.7       56.1     +6.3        498
Total        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     $7,823
d. 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    $3,195
Platforms  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    $2,602
Electronic 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    $1,355
Consolidated Statements of Operations (Unaudited)
Three months ended June 30
Yen                    U.S. Dollars
                           (millions)                  (millions)
                        2003          2002  Change (%)    2003
Net 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              8,139
Operating         
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           2003
Assets
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)          FY03
Software   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  +87.0
Platforms   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  -13.2
Electronic  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  +82.5
Financing   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   -8.4
Other        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)               FY03
Software &    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)           FY03
Software  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  +4.7
Platforms 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   -0.1
Electronic 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  +14.8
Financing  Japan     110.0     110.0    -      119.2  -7.8
             Overseas     -          -    -        -     -
             Total     110.0     110.0    -      119.2  -7.8
Other      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  +3.4
Total      Japan   Y3,400.0  Y3,400.0   -   Y3,280.6  +3.6   
             Overseas 1,400.0  1,400.0    -    1,336.9  +4.7
Total   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)               FY03
Software   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    +4.7
Platforms  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    -0.1
Elect      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    +14.8
Note: *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          53
3. Mobile Phone Shipments
(Million Units) 
         FY2003 (Forecast)                                  
      Previous*       Revised**    Change        FY2002     
           3.45            3.55     +0.10          3.34
4. HDD Production
(Million Units) 
         FY2003 (Forecast)                                  
      Previous*       Revised**    Change        FY2002     
         11.90            11.95     +0.05          8.76
5. 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%
     sales
7. Capital Expenditures, Depreciation
Yen                     Yen          
                     (billions)             (billions)Change
                                                       (%)
                 FY2003 (Forecast)            FY2002   FY02 
                                                       to   
                Previous*    Revised**  Chan  (Actual) Revis
                                         ge             ed   
                                                       FY03 
  Capital 
  Expenditures
Software &       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 Exchange
end 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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