Fujitsu s Leading-Edge ICT to Enable and Support a Sustainable Society - Creating new value by leveraging advanced technologies -
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1 Fujitsu North America Technology Forum 2013 Fujitsu s Leading-Edge ICT to Enable and Support a Sustainable Society - Creating new value by leveraging advanced technologies - Tatsuo Tomita President FUJITSU LABORATORIES LTD. January 24, 2013
2 Fujitsu at a Glance Headquarters: Tokyo, Japan President: Masami Yamamoto Established: June 1935 Net Sales: 4,467.5 billion yen (US$54,482 million) Net Income: 42.7 billion yen (US$521 million) R&D Expenditure: billion yen (As 5.3% of Sales) Employees: 173,000 worldwide Principal Business Areas: Technology Solutions, Ubiquitous Solutions, Device Solutions Stock Exchange Listings: Tokyo (Code: 6702), Osaka, Nagoya, London Note: All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of US$1 = 82 yen, the approximate closing rate on March 31,
3 FUJITSU s Business Composition Device Solutions Electronic Components LSI Devices Ubiquitous Product Solutions 1.7% 12.3% FY % $54.5 B Others 61.7% Technology Solutions System Platforms Storage Software Server Supercomputer Net Sales Network Solutions PCs Security Mobile Phones FY 2011 Market Share (IT Services) Rank #1 #2 #3 #4 #5 Japan Fujitsu NTT-D Hitachi NEC IBM World Stage 2 IBM HP Fujitsu Accenture CSC Note: All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of US$1 = 82 yen, the approximate closing rate on March 31, Services Datacenters FLASHWAVE Optical Transport Consulting System Integration
4 FUJITSU s Global Workforce and Revenue FY2011 (April March 2012) Revenue and Employees 9.2% 6.4% by Region 18.1% 66.3% US$9.9 billion EMEA 31,000 US$5.0 billion APAC & China 27,000 US$36.1 billion Japan 107,000 US$3.5 billion The Americas 8, % 15.6% 17.9% 61.8% Note: Consolidated Net Sales to Unaffiliated Customers by Customer s Geographic Location Geographical segments are defined based on customer location and interconnectedness of business activities. FY 2011 is fiscal year ended March 31,
5 FUJITSU s Innovations 1mm * Ladder-type SAW filter Petascale computing (World's fastest supercomputer) (Mid-June Mid-June 2012) Single-photon emission from quantum dots for communication wavelength band (World s first, joint R&D with University of Tokyo) source gate drain High Electron Mobility Transistor (HEMT: World s first) Color electronic paper (World s first) Relay-based mainframe (Japan s first) Establishment of Fujitsu Laboratories Ltd. 4 Color LSI-based plasma display computer (World s first) (World s fastest at the time) Palm vein authentication (World s first) * 京 (K) is the cognomen for the next-generation supercomputer named by RIKEN.
6 Technology Innovation, Business, and Society Invention of High Electron Mobility Transistors (HEMT) in 1979: Explosive widespread growth of satellite broadcasts (1989) Gate Source Drain Information shared beyond borders, beyond different ideologies Low-noise HEMTs enable (1985) dramatic reduction in size of satellite broadcast antennas(<1m) Satellite broadcast receiver antenna Collapse of the Berlin Wall (1989) Mobile phone base stations using high-output GaN-HEMT power amplifiers (2008) Spread of mobile phone-based image and video transmission 5 WiMAX base station
7 Fujitsu Laboratories Overview 6 Capital: 5 billion JPY R&D Budget: Approximately 35 billion JPY/420M USD annually as 15% of Fujitsu R&D Expenditure Total Employees: Japan: Approximately 1,250 Global R&D sites (U.S., Asia excluding Japan: China & Singapore, U.K.): Approximately 250 Research Fields Systems Services & Solutions Human- Centric Computing 研究領域 Networks Devices & Materials Green ICT
8 Fujitsu Group: R&D Scheme Fujitsu Limited and Subsidiaries Technology Strategy Task Force* Fujitsu Laboratories Ltd. Technologies and market trends Customer and partner needs * Technology Strategy Task Force: Internal committee that determines the R&D strategy of the Fujitsu Group 7
9 8 Strategic R&D Themes: Ongoing contribution to strengthen business Clarify positioning of R&D themes with company-wide future vision Alignment of business and research, strategic allocation of R&D resources Fujitsu s current business Technology Solutions Seeds Seeds Seeds Seeds Seeds Seeds Seeds Seeds-focused Themes Business development Core Strategic Core Strategic Core Strategic Core Strategic Core Strategic Company-wide Core Strategic Themes Business development Business development Ubiquitous Product Solutions Device Solutions Other Business-strategic themes New business Spin-out Convergence business
10 Open Innovation and Global Reach 9 Fujitsu Laboratories of Europe Ltd. (FLE) (Estab. 2001) London Suzhou Fujitsu Research and Development Center Co., Ltd. (FRDC) China (Estab. 1998) Beijing Shanghai Fujitsu Laboratories Ltd. (Estab. 1968) Kawasaki Sunnyvale Fujitsu Laboratories of America, Inc. (FLA) (Estab. 1993) Akashi Atsugi Texas Singapore Japan Peking University Tsinghua University Massachusetts Institute of Technology 121 R&D projects in 11 countries worldwide
11 Complex issues impacting our lives 10 Economy Business Management Natural Disasters Daily Lives Health Food Supply Security & Safety Energy Pollution Population Lifestyles Society Transportation Environment Governmental: Domestic & Global Global issues intricately intertwined
12 Global crises: Closer world, interrelated impact 11 European financial crisis Lehman shock Flooding New types of influenza/ viruses: H5N1 bird flu, New type of SARS Great East Japan Earthquake Regional issues have worldwide effect in shorter periods of time
13 Extraordinary evolution of ICT 12 VPP5000U (1999) 9.6G FLOPS Fujitsu s Tablet PC: STYLISTIC M532 (2013) Smartphone: ARROWS X F-10D (2013) 12G FLOPS Endless opportunities for leveraging ICT in advanced ways: Everywhere, anytime Smartphones and tablets today feature computing performance that exceeds that of supercomputers from 14 years ago
14 Paradigm Shift in ICT 13 From Technology-Centric to Human-Centric Reliable environment Human-Centric Scope of ICT Usage For specialists Computer-Centric For everyone Network-Centric Networks Internet PCs Intelligent Society Cloud Computing Sensor Technology Ubiquitous Terminals Mobile Communications Computers Creation of new value
15 Role of ICT thus far 14 Food & Water Population / Aging Health Economy Energy Transportation Natural Disasters Information New service solutions Cloud
16 New roles for ICT hereon: Social Issues 15 Food & Water Population / Aging Health Economy Energy Transportation Natural Disasters Providing new value Multitude of data: cross-industry beyond borders Providing new business Cloud
17 New roles for ICT hereon 16 Economy Food & Water Energy Population / Aging Health Sustainable Society Transportation Natural Disasters Providing new value Multitude of data: cross-industry beyond borders Providing new business Cloud
18 Leveraging ICT to drive business Streamlining Social Infrastructure Creating New Value ICT enables the creation of new value 17
19 Transforming the frontlines of business 18 Reliance on individual skills Collective team strength Reliance on intuition and experience Reshaping Business Scientific analysis and predictions Trial and error Quick results
20 Energy & Economy 19 Economy: Maintaining growth Energy: From mass consumption to sustainability Food & Water Population Health Economy Energy Transportation Natural Disasters Providing new value Multitude of data: cross-industry beyond borders Providing new business Cloud
21 Demand Response Automation Server Prototype Fujitsu Demand Response Automation Server (DRAS) in compliance with OpenADR 2.0 successfully interoperated with other companies at Grid-Interop 2012 and received much attention Electric power companies Renewable energy DR Request Scope of interoperability test at Grid Interop 2012 DR Response Factory & Building Curtailment Request Fujitsu OpenADR 2.0 DRAS Curtailment Response OpenADR 2.0 VTN House DR services Curtailment Request Curtailment Response OpenADR 2.0 VEN OpenADR 2.0 VEN VTN: Virtual Top Node VEN: Virtual End Node Air conditioning etc. 20 Smart home appliances, etc. DRAS provides an effective mechanism to maintain balance between power supply and demand throughout a smart city
22 Population / Aging, Health & Economy Food & Water Population / Aging Health Economy Aging: Aging, Aged, Ultra-aged society Health / Economy: Soaring National health expenditure Energy Transportation Natural Disaster Providing new value Multitude of data: cross-industry beyond borders Providing new business Cloud Source:United Nations Population Division 21 Source: Centers for Medicare & Medicaid Services (CMS), US Ministry of Health, Labor and Welfare, Japan
23 Human Bridge: SaaS-based Regional Medical Network Solution Securely links patients data from multiple healthcare institutions to help expand regional medical services 22 Highly secure s Datacenter Medical information Nursing home Regional collaboration Sharing medical information Consultation / Examination Center hospital + Clinic Medical specialist Making medical care more efficient Allowing patients to receive high-quality medical services smoothly
24 Natural Disasters: Wide-ranging Impact 23 Natural disasters affect everything in our society Food & Water Population Health Economy Energy Transportation Natural Disasters Providing new value Multitude of data: cross-industry beyond borders Providing new business Volcanic eruption Cloud
25 24 High-Precision 3D Tsunami Simulation Accurate replication of invading wave from offshore to shallow sea by a smoothed-particle hydrodynamic simulation This video is a demonstration of simulation technique. It is not for an estimation of a damage by tsunami. Simulation for Yokohama, Japan Simulation for Tokyo area Size of particles: 1m in diameter Number of particles :400 millions Simulation that required 5 days by utilizing a massive parallel PC cluster of 500 machines requires only 1 hour utilizing Fujitsu s K computer ( 京 *) supercomputer * 京 (K) is the cognomen for the next-generation supercomputer named by RIKEN. Results of this research could be utilized in the design of levees and evacuation shelters, and to develop guidelines for hazard maps and evacuation routes.
26 25 Today s Technology Showcase: Recent R&D 23 exhibits from the Fujitsu Group HTML5 App Store: Application Delivery & Execution on Smartphones for Business Use Know your Stress, Know Yourself: A Mobile Stress Management Service for Android Automatic Crawler for Mobile Apps Klover: Automatic C/C++ Unit Test Generation Fujitsu OpenADR 2.0 System Prototype Digital Signal Processing-based Technologies to Enable Higher-efficiency Metro-access Optical Networks High Efficiency 2.5 kw Power Supply Units for Servers A Self-detecting and Auto-restoring Photonic Network High-speed, Low Power Optical Interconnects Imaging Technology for User Monitoring: Inferring Intent from User s Eye Movement New Data Transmission Technology for Advertisements Fast Image Defogging Educational Innovation by Leveraging Web-based Content Movie Rental/Seles Kiosk (Digiboo) Introducing Fujitsu Interstage Business Operations Platform Glovia OM USB 3.0 Technologies Transcoder for WiFi TV Fujitsu RFID Technologies Fujitsu ScanSnap ix500 Desktop Scanner for PC and Mac Prevent Fraudulence! BigGraph: Detecting Tiny Anomalies Inside your Big Data A Visualization and Analysis Technology for Business Application Modernization Wandant Dog Pedomoter/Cloud Service: Supports health monitoring and obesity prevention in pets
27 Leading-edge ICT from Fujitsu to drive, enable and support a sustainable society that is resilient and prosperous
28 27
29 28 Cautionary Statement These presentation materials and other information on our meeting may contain forward-looking statements that are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Words such as anticipates, believes, expects, estimates, intends, plans, projects, and similar expressions which indicate future events and trends identify forward-looking statements. Actual results may differ materially from those projected or implied in the forwardlooking statements due to, without limitation, the following factors: general economic and market conditions in the major geographic markets for Fujitsu s services and products, which are the United States, EU, Japan and elsewhere in Asia, particularly as such conditions may effect customer spending; rapid technological change, fluctuations in customer demand and intensifying price competition in the IT, telecommunications, and microelectronics markets in which Fujitsu competes; Fujitsu s ability to dispose of non-core businesses and related assets through strategic alliances and sales on commercially reasonable terms, and the effect of realization of losses which may result from such transactions; uncertainty as to Fujitsu s access to, or protection for, certain intellectual property rights; uncertainty as to the performance of Fujitsu s strategic business partners; declines in the market prices of Japanese and foreign equity securities held by Fujitsu which could cause Fujitsu to recognize significant losses in the value of its holdings and require Fujitsu to make significant additional contributions to its pension funds in order to make up shortfalls in minimum reserve requirements resulting from such declines; poor operating results, inability to access financing on commercially reasonable terms, insolvency or bankruptcy of Fujitsu s customers, any of which factors could adversely affect or preclude these customers ability to timely pay accounts receivables owed to Fujitsu; and fluctuations in rates of exchange for the yen and other currencies in which Fujitsu makes significant sales or in which Fujitsu s assets and liabilities are denominated, particularly between the yen and the British pound and U.S. dollar, respectively.
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