As a shareholder, Fujitsu is delighted with the earnings that Fujitsu Siemens Computers generated during fiscal 2005/2006. Especially in a market where margins are shrinking, such a healthy leap is a great achievement. However, the company needs to keep its eye on the ball and continue to flex the strengths that allowed it to perform so well last year.

In this highly innovative market, speed is essential. Fujitsu Siemens Computers continues to extend its reach, nonetheless maintaining the agility and speed of a small company. This is reflected in its time-tomarket, the speed with which it rolls out new technologies and the adaptability of its sales force. For me, the future challenge lies in increasing this fast-footedness with an expanding footprint - most recently demonstrated through the acquisition of Product Related Services (PRS) from Siemens Business Services, for example.

Fujitsu and Fujitsu Siemens Computers both continue to enjoy a symbiotic, multi-dimensional relationship. As a partner, Fujitsu benefits from Fujitsu Siemens Computers’ lead role and strong impetus in driving the SAP business and taking our relationship with SAP to the next level. The steady flow of innovations - such as FlexFrame and CentricStor for the Dynamic Data Center - also enriches our offering for enterprise customers in the US and Asia. In addition, we profit from Fujitsu Siemens Computers’ strong foothold in EMEA and success in selling Fujitsu solutions across that market.

Our reciprocal relationship provides fertile ground for collaborative development efforts, as best illustrated with the recent market launch of the LIFEBOOK Q Series by Fujitsu Siemens Computers. Both companies worked closely to develop this landmark notebook for executives, combining rich communication functionality with an exceptionally light weight and enviable design. Here Fujitsu Siemens Computers’ insights into the needs of European executives were the perfect complement to Fujitsu’s state-of-the-art engineering know-how. And last but not least, the close cooperation between Fujitsu Labs and Fujitsu Siemens Computers ensures optimum synergy effects at the cutting edge of today’s research – whether it be fuel cell technology or 10 gigabit Ethernet chips.

When I look at the solid foundation that Fujitsu Siemens Computers has laid down over the past years, I have every reason to believe that the coming fiscal year will be just as successful and eventful as the last one.

Satoru Hayashi
Executive Chairman of the Board of Fujitsu Siemens Computers and
Member of the Executive Council of Fujitsu Siemens Computers