Custom Software Contract Development Equity - PDF by ukg12385


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									April 1, 2003 - March 31, 2004

Fujitsu Broad Solution & Consulting, Inc.
URL:          Securities code:   4793
                                                                           To our shareholders                                                                                                          TO OUR SHAREHOLDERS
  Highlight of financial results for 41 term
                                         (Units: Millions of yen)
     Results of                     st
                                   41 term                                                                                                                                                We also registered extraordinary losses of ¥2,457
     operations                                                                                                                     Business review                                       million, which consisted of losses on the valuation
          Sales           32,815
                                                Y/Y comparison                                                                     During the term under review, although business        of uncollectible inventory, the destruction of goods
                                                                                                                                   conditions were improving in the information service   in process, the costs of projects in which the
  Ordinary income           183                      -83.4%                                                                        industry, the management environment remained          development of software was suspended under
                                                                                                                                   severe because of sluggish information technology      agreement with customers to avoid further losses
                                          (Net profit of ¥589 million in
         Net loss          1,392               the previous year)                                                                  investment and fierce price competition.               arising from the continuation of development, and
                                                                                                                                   In response, we increasingly focused on                losses on the valuation of securities. As a result, we
                                                                                                                                   independent business, pursuing a policy which is       posted a net loss of ¥1,392 million for the term
                                         (Units: Millions of yen)
                                                                                                                                   moving us away from conventional business              (compared with a net income of ¥589 million in the
     Financial                      st
                                                                                                                                   centered on contract development.                      previous term).
                                   41 term
                                                                                                                                   In software development, we used the technology        An overview by type of business follows:
    Shareholders’                               Y/Y comparison
                                                                                                                                   and know-how that we have accumulated through
                          12,394                    -11.4%
       equity                                                                                                                                                                             Custom Software Development
                                                                                                                                   development for customers in the information and
    Total assets          24,114                     +1.4%                                                                         telecommunications sectors in areas in which we        Looking at our activities in the information and
                                                                                                                                   excel. In particular, in the embedded system           telecommunications sectors, we restructured key
                                                                                   Takao Kaneko, President (CEO)                   business, we have promoted the development of a        systems of major telecommunications carriers and
                                                                                                                                   diverse range of embedded software, such as            shipped internal systems to them on an ongoing
                                                                            We are pleased to provide a business overview of       systems for 2.5G and 3G mobile phone services,         basis. We also developed systems for terrestrial
l Share of total sales by type of business                                  the Company for 41st term                              systems for digital home appliances with               digital broadcasting which started this year, and
                                          (Units:   Millions of yen)        (April 1, 2003 - March 31, 2004).                      communications capabilities in the ubiquitous          shipped those systems to key TV broadcasting
         Hardware Sales                                                                                                            society, and systems for vehicle navigation.           stations. In the development of embedded systems,
         1,054                                 Production and                                                                                                                             based on the further accumulation of technology
                                                                            We regret to report that we have registered a loss     Meanwhile, in software services, we operated our
         3.2%                                  Sales of Packaged                                                                                                                          involving mobile phones, we were able to increase
                                               Software                     for the current term, primarily attributable to a      solution business primarily through our proprietary
                                                                                                                                   package software, and focused on strengthening         sales by approaching a number of domestic and
                                               416                          major project that proved unprofitable. We                                                                    overseas manufacturers. In addition, in the digital
                                               1.3%                         discontinued this project during the term. Based on    our marketing expertise and bolstering our service
                                                                                                                                   menu. We also provided services ranging from           consumer electronics area, we shipped an array of
                                                                            this experience, we will endeavor to create a more                                                            systems for DVD recorders and digital television
                                                                            sound corporate structure and to improve               consulting to outsourcing, to further expand this
                                                                                                                                   business.                                              sets to major consumer electronics firms. In the
                                                                            profitability by improving risk management for                                                                ITS*1 market, we developed vehicle information
                                                                            projects on a company-wide basis.                      As a result, sales for the term reached ¥32,815
                                                                                                                                                                                          terminal-related systems, such as car navigation
                                                                                                                                   million (up 3.9% year on year).
                                                                                                                                                                                          systems, for major automakers.
                                                                                                                                   In profit terms, however, we were registered an
                                                                            With respect to term-end dividends, we plan to                                                                In the public sector, we continued our involvement
                                                                                                                                   ordinary income of ¥183 million in the term under
                                                                            continue our policy of providing stable dividends in                                                          in the development of the social insurance system
                                                                                                                                   review, lower than the figure recorded for the
                                                                            response to the support we receive from our                                                                   of the Ministry of Health, Labour and Welfare, the
Software Services                               Custom Software                                                                    previous term (actually an 83.4% decline). This
                                                                            shareholders. Consequently, we will pay a dividend                                                            postal savings system of Japan Post, and the base
                                                Development                                                                        was primarily attributable to a decline in contract
31.4%                                           21,036                      of ¥6 per share.                                                                                              system and electrical application system of the
                                                                                                                                   prices and an increase in costs caused by
                                                64.1%                                                                                                                                     Ministry of Finance.
                                                                                                                                   unprofitable projects, which offset our efforts to
                                                                                                                                   significantly reduce costs.

     1                                                                                                                                                                                                                                             2
    To our shareholders                                                                                                                                                                                              TO OUR SHAREHOLDERS

    In the financial services sector, we developed key      In our temporary staffing service, we dispatched             we will actively expand our operations in the                           (3) Development of human resources
    systems at major financial institutions. And for the    engineers to major telecommunications carriers,              digital consumer electronics and ITS spheres,                               We will encourage the strategic development of
    distribution industry, we shipped POS systems*2         among other clients.                                         thereby establishing a competitive advantage.                               human resources based on the career
    and product analysis systems.                           As a result, sales were ¥10,308 million (up 11.7%            We will also add new product lines involving                                framework (development through a planned
    In addition, we created customer management             year on year).                                               package products and expand our solution                                    career path). This will enable us to develop
    systems and DWH*3 for the electric power sector.                                                                     menu, to sell more products that will enable us to                          engineers with sophisticated skills and cost
                                                            Production and Sales of Packaged Software                    better promote independent businesses.                                      awareness, giving them the ability to respond to
    As a result, sales reached ¥21,036 million (up 3.2%
    year on year)                                           For sales of our proprietary package software, we         (2) Improving profitability                                                    customer needs.

    Software services                                                                *
                                                            focused mainly on the F TRAN series or products,
                                                            our established file conversion products, and the
                                                                                                                         [1]    We will not only strictly review order status, the
                                                                                                                                development environment, and estimates from the
                                                                                                                                                                                                     The arrival of the ubiquitous society, in which
                                                                                                                                                                                                     information can be exchanged via the Internet at
                                                                                                                                order negotiation stage, but we will also enhance risk
    We provide our clients with a diverse array of          FENCE series of security products. In particular, the                                                                                    any time and any place, has brought sharp
                                                                                                                                management at the management level according to the
    software services, such as the provision of solutions   FENCE series proved popular as core security                        development size of projects and the degree of risk;                 change to business and lifestyles. The Company
    and the creation of network systems. We also            solutions, with strong sales to financial institutions       [2]    To reduce costs, the entire Company will focus on                    will correctly identify new trends, and will focus
    provide operational support, as well as a temporary     and local municipalities. However, with users                       measures such as reducing personnel expenses by                      its management resources on a shift to a solution
    staffing service.                                       postponing investment in information technology,                    improving the effectiveness of development operations                and service business, moving away from
                                                            sales fell to ¥416 million (down 34.6% year on                      and controlling orders for cooperating firms;
    In our solution business, we enjoyed healthy sales                                                                                                                                               conventional operations centering on contract
                                                            year).                                                       [3]    We will continue to improve the productivity of
    of BI*4 solutions, in which data is analyzed and                                                                            development and the quality of our software products
                                                                                                                                                                                                     development. This approach will enable the
    used in the context of product and customer                                                                                 by promoting comprehensive standardization for                       Company to achieve sustained growth. We hope
                                                            Hardware Sales
    information by telecommunications carriers and in                                                                           project management.                                                  that we can continue to count on the support of
                                                            In sales of system equipment, we sold hardware                                                                                           our shareholders as we pursue this initiative.
    the financial services and distribution sectors. We
                                                            products incidental to the package software                                                                                                                                       June 2004
    also registered stronger sales of security solutions
                                                            SAGENT. We had purchased from the supplier and
    using our security software as core programs. This
                                                            sold it as part of solution business as well as for the
    performance reflected the introduction of personal
                                                            creation of network systems.
    data protection legislation and heightened needs for                                                                Explanation of terms:
    security.                                               Sales came to ¥1,054 million (down 20.4% year-on-           *1 <Intelligent Transport Systems (ITS)>                                 *4 <Business Intelligence (BI)>
    With respect to the IP telephone solution, using IP     year).                                                      ITS is a new traffic system that can be used to resolve road traffic     BI refers to the effective use of information that a company has
    networks*5, we promoted sales to Japanese                                                                           problems, such as accidents and congestion, by networking                accumulated for prompt, accurate decision-making and greater
    corporations operating in China. We successfully
                                                              Challenges for the Company                                people, vehicles, and roads through information using                    business efficiency throughout the company by analyzing the
                                                                                                                        cutting-edge information and telecommunications technologies. It         information.
    received system orders that will enable us to further   Although the Company registered an extraordinary            comprises a few elemental technologies, including the Vehicle            *5 <IP network>
    development this business.                              loss in the term under review, it plans to use that         Information and Communication System Center (VICS) and the
                                                                                                                        electric toll collection system (ETC).                                   The IP network is a network in which a communications route is
    We also promoted sales of the ERP*6 solution CAP        experience to take the following measures to                                                                                         created based on Internet Protocol (IP). IP telephones that use IP
                                                            improve profitability and enhance its                       *2 <POS system>                                                          networks can provide services at a lower cost compared with
    21, and received a solid volume of orders.                                                                          A POS system is one that records information on the sale of              conventional telephone networks.
                                                            competitiveness. With these measures, we believe
    For other services, we received orders for such                                                                     products each time a product is sold in a store, and uses the
                                                            that we will be able to generate profits, even in a         results of calculation for inventory control or as marketing material.
                                                                                                                                                                                                 *6 <Enterprise Resource Planning (ERP)>
    services as the creation of network systems,                                                                                                                                                 ERP denotes a management approach whereby management
                                                            severe management environment:                              The system is also known as a “point of sale” system.
    system operation and maintenance, and monitoring                                                                                                                                             resources are completely administrated and controlled virtually in
    of systems operation. We also found demand for          (1) Promoting independent businesses                        *3 <Data Warehouse (DWH)>                                                real time.
                                                                                                                        The DWH is a system used to obtain information that is useful for
    outsourcing services for central government                  By bolstering our technologies and know-how            management by accumulating data that arises from management
    agencies and major carriers.                                 in embedded systems and giving them a                  activities in the key system, and analyzing that data by purpose.
                                                                 greater weighting,

3                                                                                                                                                                                                                                                                     4
    Financial statements                                                                                                                                                                                                                                                                                                          TO OUR SHAREHOLDERS

                                                                  Balance sheet (as of March 31, 2004)                                                                                           Profit and loss statement (April 1, 2003 - March 31, 2004)
        Total assets                     (Million-yen)                                                                                                                    (Unit: Thousand-yen)                                                                                                             (Unit: Thousand-yen)      Sales                   (Million-yen)
                                                                                  Account title                     Amount                     Account title                  Amount                                                       Account title                                                  Amount
                                                                   Assets                                                           Liabilities and Shareholders’                                  Net Sales                                                                                                       3,208,561
                                                                                                                                    equity                                                         Selling, general and administrative expenses                                                                    2,692,346
                                                                        Current assets
                                                                                                                                     Current liabilities                         8,466,315         Operating income                                                                                                  516,215
                                                                           Cash & cash equivalents                    4,323,278                                                                    Other income
                                                                                                                                         Accounts payable                        3,874,529               Interest income and dividends                                                                19,945
                                                                           Notes receivable                              34,480
                                                                                                                                                                                                         Miscellaneous income                                                                         71,688           91,634
                                                                           Accounts receivable                        9,988,354          Short-term borrowings                   2,300,000
                                                                                                                                                                                                   Other expenses
                                                                           Marketable securities                         10,526          Accrued expenses                        1,832,880               Interest expense                                                                           3,108
                                                                                                                                                                                                         Miscellaneous expenditure                                                                421,242             424,350
                                                                           Inventories                                3,342,447                                                    458,905
                                                                                                                                         Other current liabilities                                 Ordinary profit                                                                                                    183,498
                                                                           Other current assets                         564,066                                                                    Extraordinary losses
                                                                                                                                         Total current liabilities               8,466,315
                                                                                                                                                                                                         Loss from cancellation of commissioned software development                             1,239,785
                   39th term 40th term 41st term                           Deferred tax assets                        1,261,226                                                                                                                                                                                                            39th term 40th term 41st term
                                                                                                                                     Long-term liabilities                       3,253,700               Inventory written down                                                                  1,154,742
                                                                           Allowance for doubtful
                                                                                                                          (9000)                                                                         Loss from revaluation of investment securities                                             63,282         2,457,810
            Shareholders’                                                  account                                                       Provision for employee
                                                                                Total current assets                 19,515,381          retirement benefits
                                                                                                                                                                                 3,131,594         Net loss before tax                                                                                             2,274,311         Ordinary income
            equity                        (Million-yen)                                                                                  Provision for retirement
                                                                                                                                                                                                   Income taxes, inhabitant taxes and business taxes                                                13,012                                                    (Million-yen)
                                                                   Fixed assets                                                                                                    122,105         Adjustment of income taxes                                                                    (894,497)         (881,484)
                                                                                                                                         benefits to officers
                                                                        Investments and long-term                                                                                                  Net loss                                                                                                        1,392,826
                                                                                                                                     Total Long-term liabilities                 3,253,700
                                                                        loans                                                                                                                      Retained profits brought forward                                                                                  159,069
                                                                           Investment securities                        140,641      Total liabilities                         11,720,015          Interim dividend amount                                                                                            70,800
                                                                                                                                                                                                   Undisposed loss at end of period                                                                                1,304,557
                                                                           Investment in affiliate                       52,925     Shareholder’s equity                                           Notes:
                                                                                Total investments and                                                                                              1.       Amounts are rounded down to the nearest one thousand yen.
                                                                                                                        193,567      Common stock
                                                                                long-term loans
                                                                                                                                                                                                   2.       Transactions with affiliates
                                                                        Property, plant and equipment
                                                                                                                                         Authorized-43,200,000 shares                                       Amount of operating transactions
                                                                           Land                                       1,268,884                                                                                                            Sales                        19,816,176 (thousand-yen)
                                                                                                                                         Issued-11,800,000 shares                1,970,000
                                                                           Buildings                                  1,844,426                                                                                                            Purchases                    331,557 (thousand-yen)
                                                                                                                                         Capital surplus                         3,012,500                                                 Amount of transactions other than operating transactions
                                                                           Structures                                    30,466                                                                                                                                          191,156 (thousand-yen)
                      th          th
                   39 term 40 term 41 term    st                                                                                                                                                                                                                                                                                           39th term 40th term 41st term
                                                                           Equipment                                    845,955          Retained earnings                       7,418,085         3.       Net loss per share                                      118.03 Yen

                                                                                                                                     Unrealized gain on investment
            Net income or loss (-)                                         Accumulated depreciation                  (1,480,310)
                                                                                                                                     securities, net of tax
                                                                                                                                                                                    (6,024)                                                                                                                                          Net income or loss (-)
            per share              (yen)
                                                                                  Total property, plant
                                                                                  and equipment
                                                                                                                      2,509,423     Total shareholders’ equity                 12,394,561                                                                                                                                            per share        (Million-yen)

                                                                        Others assets                                 1,896,205     Total liabilities and shareholders'
                                                                                                                                                                                                 Profit appropriation
                                                                                  Total fixed assets                  4,599,195                                                                                                                                                                                    (Unit: Yen)

                                                                   Total assets                                      24,114,576                                                                                                            Account title                                                Amount
                                                                                                                                                                                                        Undisposed loss at end of period                                                              1,304,557,684
                                                                                                                                                                                                        Reversal of reserve for programs                                                                 30,485,340
                                                                   1.     Amounts are rounded down to the nearest
                                                                          one thousand yen.                                                                                                             Reversal of special depreciation allowances                                                       6,159,767
                                                                   2.     Claims in affiliates (short term)      ¥ 6,668,461,000                                                                        Reversal of general reserve                                                                   1,530,000,000
                                                                   3.     Debts due to affiliates (short term)       ¥ 64,412,000                                                                       Total                                                                                           262,087,423
                                                                   4.     The items of inventories                                                                                                      The following appropriation is made:
                                           -118.03                              Merchandises                               4,341                                                                        Dividends                                                                                       70,800,000
                                                                                                                                                                                                        (¥6 per share)                                                                                                                                         -1,392
                                                                                Materials                                  6,123
                                                                                                                                                                                                        Special depreciation allowances                                                                 45,713,743
                                                                                Goods in process                       3,331,982
                                                                                                                                                                                                                                                                                                                                               th      th
                      th          th
                   39 term 40 term 41 term    st                                                                                                                                                        Retained profits carried forward                                                               145,573,680                           39 term 40 term 41st term
                                                                                                                                                                                                    Note:      Interim dividends of ¥70,800,000 (¥6 per share) were paid on November 28, 2003.
    Note:    As the method for calculating net income per share
             has changed since the 40th term, net income per
             share for 39th term is also indicated based on the
             same calculation method as that used in the 40th

5                                                                                                                                                                                                                                                                                                                                                                             6
    Using our comprehensive capabilities to promote
                                                                                                                                         Focusing on enhancing the solution business
    operations in the embedded system area

    We will endeavor to step up planning and design of products, total solutions from development to                                     With the growing use of broadband communications, mobile area markets, including markets for digital
    assessment and examination, and package products for embedded systems, in markets such as                                            consumer electronics, ITS, and mobile phones, are likely to expand. Meanwhile, corporate IT investment in
    next-generation mobile phones, digital consumer electronics, and ITS that demand sophisticated functions.                            the security, ERP (Enterprise Resource Planning), and BI (Business Inteligence) areas has been increasing
    We believe that this initiative will enable us to increase sales.                                                                    steadily.
                                                                                                                                         We will improve our capability to provide solutions in these areas, to establish an independent business base.
      Primary target areas and priority measures
     Mobile phones                                                                                                            MOBILE

                                           Provide embedded software programs for third-generation mobile phones that require                                                             Sales         Marketing
                                           increasing functionality                                                                                                                    management       analysis            Sales
                                           Expand operations in China where demand for mobile phones is set to grow                                                      Inventory                                        promotion
                                           Develop mobile/security-use software packages for mobile phones that boast greater                                                                                               (SFA)
                                           functionality, including e-commerce                                                                                                                    Mobile
                                                                                                                                                                                                connection                             Contact
                                                                                                                                                             Logistics                                                                 Center
     Digital consumer electronics                                                          DIGITAL CONSUMAR ELECTRONICS                                                         Workflow                        Groupware
                                           Provide embedded software programs for DVD recorders and digital TVs
                                           Expand and strengthen cooperation with semiconductor manufacturers                                                                               Finance/general
                                                                                                                                                           Demand                          accounting (ERP)                              Maintenance
                                           Expand the IP TV telephone platform/solution                                                                                                                                      Fee
                                                                                                                                                           forecast      Settlement                                                          and
                                           Expand the examination business to check malfunctions of digital home appliances (V-labo),                                                         Management                  collection
                                                                                                                                                            (SCP)                                                                         inspection
                                           and provide a lifeline for them                                                                                                                    analysis (BI)

                                                                                                                                                             Development        Security                             IP                Product
     ITS area                                                                              INTELLIGENT TRANSPORT SYSTEMS                                     management
                                                                                                                                                                                               Middleware                              planning
                                           Approach car navigation terminal manufacturers with DVD technology                                                                                   platform
                                           Expand operations related to server systems used for the transmission of information in ITS                                                                                   Project
                                           Look at entering the Chinese market in cooperation with Japanese corporations                                              management                                       management
                                                                                                                                                                                      Procurement/        HR and
                                                                                                                                                                                       purchases          wages

                                                                 Sales in the                          ¥0.8 billion
         Intelligent Transport Systems (ITS)
                                                                 embedded                                 17%             Mobile                                                      Priority items in the solution business
         is a generic name for new road traffic
         systems created to control people,
                                                                 system area                          Digital          phones/PHS
                                                                                                                                                                                 l    Merchandizing new solutions in the information security and IP areas
                                                                                                   consumer             ¥2.4 billion
         roads, and vehicles under one total                     FY2003 (results)                  electronics             53%                                                   l    Bolstering the functions of “CAP 21” ERP package products for the construction
         system. ITS employs the cutting-edge                    * “Other” includes ITS.           ¥1.3 billion                                                                       sector
         information and telecommunications                                                            30%
                                                                                                                                                                                 l    Promoting the provision of solutions in the corporate mobile area by applying the
         technologies for the purpose of                                                                                                                                              embedded system technology to mobile middleware platforms, etc.
         improving road safety, transport
         efficiency, and comfort.                                                                     ¥4.5 billion                                                               l    Enhancing the consulting capability in the financial/general accounting (ERP)
                                                                                                                                                                                      area as well as the management analysis (BI) area

7                                                                                                                                                                                                                                                                         8
    Company profile                                                                                                                                          TO OUR SHAREHOLDERS                  Stock information                           STOCK INFORMATION
    As of March 31, 2004                                                                                                                                                                          As of March 31, 2004

       Trade name:                     FUJITSU BROAD                   Directors and auditors (as of June 29, 2004)                           Primary offices                                        Authorized share capital:                  43,200,000 shares
                                       SOLUTION &                      President (CEO):     Takao Kaneko                                      Head office:                                           Shares outstanding:                        11,800,000 shares
                                       CONSULTING Inc.
                                                                       Executive Director:  Haruyuki Kodama                                        Gate City Ohsaki East Tower 11F, 1-11-2,          Number of shareholders:                    11,817
       Establishment:                  November 20, 1963                                                                                           Osaki, Shinagawa-ku, Tokyo 141-8581,
                                                                       Managing Director:   Mitsuhiro Nakata                                                                                         Major shareholders
       Capital:                        1,970,000,000 yen                                                                                           Japan
                                                                       Director:            Hiromichi Hirata
       Number of employees:            1,883                                                                                                  Development center:                                                                               Equity stake in the Company
                                                                       Director:            Tsuneyoshi Ishii                                                                                                  Name of shareholder               No. of shares
                                                                                                                                                   Tokyo Develop Center (Minato, Tokyo)                                                                            Percentage
       Primary business lines                                          Director:            Kazuhiro Eguchi                                                                                                                                         held
                                                                                                                                                   Fukuoka Develop Center (Hakata, Fukuoka,                                                          shares                 %
       The Company engages in software development,                    Director:            Hirokazu Kadowaki                                      Fukuoka)                                        Fujitsu Ltd.                                   6,660,000              56.47
       software services, sales of package products, and               Director:            Tsugio Niijima                                                                                         Onoe Kigyo K.K.                                  432,000               3.66
       sales of system equipment. Its primary businesses are                                                                                  Branch:
                                                                                                                                                                                                   Fujitsu BSC employee stock
       as follows:                                                     Director:            Hiroshi Asakawa                                        Sendai Branch (Miyagi), Numazu Branch           ownership society
                                                                                                                                                                                                                                                     149,900              1.27
                                                                       Standing Auditor:    Seishi Osato                                           (Shizuoka), Osaka Branch (Osaka)                UBS Luxembourg S.A.                               143,500              1.21
                                                                                                                                                                                                   The Chase Manhattan Bank N.A.,
    ● Custom Software     Business application software                Auditor:             Kazuhiko Kato                                     Human resources center:                              London SL Omnibus Account
                                                                                                                                                                                                                                                      80,200              0.68
      Development         Embedded systems                             Auditor:             Takashi Nakamura                                       Tokyo Human Resources Center, Osaka             Japan Trustee Services Bank, Ltd.                  66,100              0.56
                          Control systems for networks and                                                                                         Human Resources Center                          Nikko City Trust Bank Co.                          58,700              0.49
                          precision instruments, etc.                                                                                                                                              Hidefumi Ito                                       50,000              0.42
                                                                       Notes:   1.   Hiromichi Hirata, Director, is an outside director as                                                         Goldman Sachs International                        40,900              0.34
                          Basic software such as platforms and                       stipulated in Article 188-2-7-2 of the Commercial
                                                                                                                                                                                                   Noriaki Kato                                       34,000              0.28
                          middleware                                                 Code.                                                    State of business combination
                                                                                                                                                                                                   Note:     The Company has no equity in major shareholders.
    ● Software Services   Solution service                                      2.   Kazuhiko Kato, Auditor, and Takashi Nakamura,            The Company’s parent is Fujitsu Ltd., which holds
                                                                                     Auditor, are outside auditors as stipulated in Article   6,660,000 shares in the Company (share of voting
                          System integration service                                 18-1 of the Law for Special Exceptions to the                                                                   Acquisition, disposal, and ownership of treasury
                                                                                     Commercial Code Concerning Audits, etc., of              rights: 56.47%). The Company has been                  stock No relevant item           Financial institutions/
                          Creation/ operation service related to the
                                                                                     Kabushiki-kaisha.                                        commissioned by its parent to develop software,                                                            securities companies
                          Internet and LAN                                                                                                                                                         Distribution of number of
                                                                                                                                              and sales from such activity account for 60.4% of    shares by shareholder                                                1.43%
                          Outsourcing service                                                                                                 total sales.
                          Temporary staffing service                   Audit corporation: Shin Nihon & Co.                                                                                          Individuals/other
    ● Production and      Package software developed by the                                                                                                                                         34.95%
      Sales of Packaged   Company                                                                                                                                                                                                                           Other corporations
      Software                                                                                                                                                                                      Foreign companies                                                  61.37%
                          (Tool package, security package,
                          groupware package, ERP package)                                                                                                                                           2.25%
    ● Hardware Sales      System equipment and peripherals
                          Package software of other companies                                                                                                                                       Distribution by No. of
                                                                                                                                                                                                                                                          1 stock trade units 12.89%
                                                                                                                                                                                                    shares held
                                                                                                                                                                                                      5,000 stock trade units                               5 stock trade units 5.48%
                                                                                                                                                                                                                                                         10 stock trade units 11.60%

                                                                                                                                                                                                      1,000 stock trade units                             50 stock trade units 2.47%

                                                                                                                                                                                                           500 stock trade units
                                                                                                                                                                                                                         2.16%                           100 stock trade units 2.81%

9                                                                                                                                                                                                                                                                                       10
        Information on clerical operations involving shares

Stock-transfer agent:          UFJ Trust Bank Limited.
Handling office:               UFJ Trust Bank Limited., Corporate Agency Department
      Mail contact address
   Telephone inquiry address   7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081, Japan
                               Tel (+) 81-3-5683-5111

Place of transfer              Any UFJ Trust Bank Limited. branch

Fiscal year end                March 31

Annual meeting of              Held in June

Record date                    Annual meeting of shareholders/dividends March 31
                               Interim dividends September 30

Other record dates             Record dates will be set by giving prior public notice.

Number of one stock            100 shares
trade unit:

Newspaper in which             Nihon Keizai Shimbun
public notices are made        Each shareholder can inspect the balance sheet and profit
                               and loss statement at the Company’s website

        FUJITSU BROAD SOLUTION                           CONSULTING, Inc.
                            Gate City Ohsaki East Tower 11F,
                   1-11-2, Osaki, Shinagawa-ku, Tokyo 141-8581, Japan
            Tel: (+) 81-3-5740-3111 (main number), Fax: (+) 81-3-5740-3100

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