Management Policy[Message from the President]
My name is Satoyasu Sakashita and I became president on October 1, 2011.
The first half of the fiscal year under review brought signs of a recovery in production activities in Japan, from the steep drop that had taken place in the wake of the Great East Japan Earthquake. However, the Japanese economy continued to face challenging conditions, reflecting the appreciation of the yen and sluggish growth in exports given weak economies overseas.
In the IT industry, corporate demand for IT investments improved partly. Overall, however, companies continued to take a conservative stance.
In this environment, the FUJISOFT Group began to implement its five-year plan and has actively promoted integrated group operations based on a five-pillars strategy. (The five pillars are strengthening the foundations of the contract business, becoming a prime vendor, accelerating productization, accelerating globalization, and bolstering Group capabilities).
Enhancement of Comprehensive Project Management
As in the previous fiscal year, we strove to improve earnings by standardizing and streamlining our development operations through the adoption of common frameworks for enhanced comprehensive project management. Meanwhile, to enhance integrated group management, we promoted cross selling and alliances and strengthened Group ties.
Launch of FSGreen Chemical Report
Countries are developing laws to regulate chemical substances. In this environment, we launched in September 2011 the FSGreen Chemical Report SaaS-based system that reduces the burden on users when obtaining information on chemical substances throughout the supply chain. The system also allows users to improve business efficiency and accuracy and to comply with laws and regulations.
Cloud Business
Using the private cloud foundations that we established in the previous fiscal year, we continued to develop FUJISOFT Group’s distribution cloud, SaaS for users in the distribution industry.
In the Research and Development of Dependable Independent and Integrated Cloud Computing Foundations, a joint project with Tsukuba University that is part of our efforts to promote cloud computing, we prepared and published a document on Kumoi, the cloud computing foundational software.
Provision of a Digital Signage Solution
We provided areas affected by the Great East Japan Earthquake with a digital signage solution, a bulletin board that can be used for communication between government and residents. National and local governments can use the digital signage solution to transmit notices, such as notices on applications for grants by residents in the areas. The digital signage solution can also be used for communicating information on volunteer activities and events in neighboring regions.
Net sales for the first half under review stood at 65,788 million yen, down 1.6% year on year. However, with a 5.2% year-on-year decline in selling, general and administrative expenses, to 13,159 million yen, the result of continued cost cutting, operating income rose 37.8%, to 2,102 million yen.
Ordinary income declined 1.6%, to 1,550 million yen, attributable to equity in losses of affiliates and other factors. Net income reached 264 million yen, a decline of 79.5% year on year, reflecting the posting of extraordinary losses, including a loss on the closing of offices, a loss on the valuation of investment securities, and an increase in income taxes.
We respectfully ask for your continued understanding and support.
December 2011
President
Satoyasu Sakashita
