outperforming the market . slow global economic development . strategic direction pays off . vital statistics – sending a strong signal . fujitsu personal systems – part of the family . consumer products – still no.1 in europe . small & medium enterprises – winning market share . large enterprises – investment driving growth . leveraging innovation
Fujitsu Siemens Computers and the IT market Outperforming the market Despite an extremely tough year for the IT industry, our revenue in fiscal 2002/2003 was almost the same as the previous year, placing us ahead of most of our competitors. We also achieved our goal of improving operating profit before restructuring costs. Our continuing progress and our gains in market share are a positive signal to our partners, customers and competitors. Slow global economic development The global economic downturn slowed IT spending significantly in fiscal 2002/2003. Overall, the European economy grew by only 1%1) and Germany, which plays a major role in our current business, was harder hit than other countries. Following an extremely negative year in 2001, in which the Western European market for PCs, servers and storage finished up with a drop in growth of 8%2), 2002 concluded with a double-digit drop of 13%2). Strategic direction pays off A less than positive market situation did not induce us to alter our strategic targets. We continued to align the entire company in the strategic direction of Mobility and Business Critical Computing and to highlight our three customer segments, with particular emphasis on the small and medium enterprise sector. Achieving a better geographical balance was a key goal, reducing Germany’s share of our total business and also strengthening global reach in co-operation with our shareholders. We continued to maintain our position at the forefront of the market in emerging products like tablet PCs. Vital statistics – sending a strong signal Revenues for fiscal 2002/2003, at roughly € 5.34 billion, were only 1.8% down on the previous year, meaning that our performance was significantly better than the market in general and better than most of our competitors. Our operating profit before restructuring costs of approximately € 70 million also reflects a positive tendency and represents an improvement of € 30 million year-on-year. Despite restructuring costs of some € 55 million, profit before tax for the fiscal year comes in at around € 8 million. Through optimization projects launched in departments company-wide, we succeeded in reducing operating expenses in the fiscal year by 13%. For the first time since the foundation of the company in 1999, our net cash is positive at € 313 million. This improvement has been achieved by very close control of the working capital. Fujitsu Siemens Computers has managed to gain market share in Western Europe, unlike HP or IBM3). We made gains in almost every product sector, particularly mobiles. Fujitsu Siemens Computers was the fastest growing notebook supplier in Western Europe in 20024). Growth was well ahead of the market in all key regions. Compared to a market decrease of 6%5) in 2002, France outperformed the market dramatically, increasing by 37%. Our revenue in the UK and Ireland was up 33% and in the Nordic Region, up 19%5). International and Eastern European regions also made significant revenue gains.

1) Source: GDP real, Consensus Economics, 05/2003
2) Source: IDC Black Book 03/2003
3) Source: Total PC and server market, IDC (02/2003)
4) Source: IDC, EMEA PC Tracker (05/2003)
5) Source: growth rates EMEA PC and server market, IDC (02/2003)