Leading-edge Technology Innovation from Fujitsu Laboratories

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Fujitsu North America Technology Forum 2014 Leading-edge Technology Innovation from Fujitsu Laboratories January 22, 2014 Tatsuo Tomita President Fujitsu Laboratories Ltd.

Life on earth 12,742 km 1 m Thermosphere Stratosphere 50 km 5 mm Ozone layer 10~20 km 1~2 mm 1 Troposphere Surface of the earth

The Earth is Alive Extreme Weather Patterns Global Warming Unforeseen Natural Disasters 2

Progress of Civilization, Negative Legacy Environmental Pollution Deforestation, Increased Carbon Footprint (CO 2 ) Deteriorating Structures 3

Global-scale Inter-related Issues Food and Water Supply, Sanitation Refugee Issues Inter-related Issues 4

Bringing People and ICT Together Human-Centric Intelligent Society Dramatic Growth and Development of ICT ICT that Anyone Can Use ICT-related Risks 5 ICT Supporting People s Activities Socially Useful ICT

Fujitsu Technology and Service Vision Fujitsu s 3 Actions 1. Create Innovation through People s Activities 2. Power Business and Society with Information 3. Optimize ICT Systems from End to End Common Foundation Technological capabilities, quality and reliability, eco-friendliness 6

Fujitsu Laboratories: Mission Support the Fujitsu Group s growth by leveraging 富士通グループの発展を先端テクノロジーで支える leading-edge technologies Generate innovation through advanced technologies 7

R&D: Core Strategic Domains Fujitsu s Business Create Innovation through People s Activities Power Business and Society with Information Optimize ICT Systems from End to End Common Foundation Business-Strategic Themes Core Strategic Domains Ubiquitous Innovation Social Innovation ICT Innovation Manufacturing Innovation Seeds-Oriented Themes Existing Businesses New Businesses New Markets 8

Ubiquitous Innovation 9

Ubiquitous Innovation Developing front-end ICT that is closely integrated into users lives \ $ Finance Stores, classrooms, medical offices Logistics/ Distribution Education Factories, hospitals, automobiles Medicine Facilities, offices, on-the-go Interfacing with People Interfacing with Things System Compatibility Next-gen UI, Wearable, Power-conserving, Sensing, Image/Sound/Language Processing, HTML5, IoT Back-end layer Creating value by linking front-end systems with mission-critical systems Creating value by processing massive volumes of data, especially media data Gateway layer Accelerating front-end transformation by rapidly developing service environments that meet on-site needs Equipping people with ICT Empowering people through front-end systems Equipping the environment with ICT Promoting the utilization of physical information via sensing 10

Social Innovation 11

Social Innovation Connecting and utilizing heterogeneous data to offer societal services Government (Open Data) Business Individuals Environment/Society (Sensors) Statistics, geography Orders, accounting SNS, life logs Weather, traffic Safe & Comfortable Society Societal infrastructure Mobility, disaster mitigation, Security Decision-making Support Lifestyle innovation Health, education, HR dev., food, agriculture Low Environmental Impact Environment and energy Smart cities, water supply, biodiversity Data usage Secure data processing methods Algorithm development Privacy protection, ID mgmt Societal system transformation Create social systems with consideration to policies, laws, and people s emotions Forecasting, optimization, simulation Data collection/ inter-relation Connecting massive sets of heterogeneous data Ascertain significance of data, curate/integrate data formats, and integrate data into meaningful patterns 12

ICT Innovation 13

ICT Innovation Software control of all ICT to support on-demand customer innovation Core operations Big data Social platforms M2M Offering Infrastructure Services Datacenter, WAN front-end Cloud Products Integrating datacenters, networks and front-end devices through SDN Unified distributed service platform for leveraging value in data Eliminating Complexity in ICT Systems Integrated ICT platforms Support & Services Anticipating Customer Needs Proactive datacenters Proposing customer value from observation data Big data utilization service Delivering just-in-time features and services Servers: Flexible platforms Storage: Supporting data characteristics, value changes Networks: Rapid access to resources throughout the world from anywhere Pursuing ease-of-use while enabling flexible customization based on customer needs 14

Manufacturing Innovation 15

Manufacturing Innovation Supporting Fujitsu s manufacturing for enhanced ICT value Ubiquitous devices HPC/ Servers Packaging/ Chips Software Greater Efficiencies in Manufacturing & Development Virtual design, rapid prototyping, software manufacturing, hardware manufacturing Development process innovation Simulation-based design/ testing Rapid prototyping (using 3D printers) Manufacturing simulation New product creation Creating products that will lead to new services Developing key trigger technologies and IP Quality Control 16 Cultivating Leading-edge IP Service & solution development Consulting: Manufacturing leveraging ICT Data services: Utilizing manufacturing site data Outsourcing services:using Fujitsu s resources Enhanced product performance/ quality Production tools, advanced testing technology DevOps, software quality evaluation

Usage Scenarios User Interface Pulse Measurement 3D Laser Sensor Video-mediated Communications etc. 1. Create Innovation through People s Activities 2. Power Business and Society with Information 3. Optimize ICT Systems from End to End Common Foundation Technological capabilities, quality and reliability, eco-friendliness LOD DRA Server Resource-pooling Architecture Inter-CPU Data Communications Ecomaterials Device Integration Analysis Scenarios Data Aggregation Data Transfer Methods etc. 100 Gbps Optical Communications Software Map etc. etc. 17

Fingertip Touch-based User Interface Enables easy data interaction by simply touching real-world objects with one s fingers Camera1 Projector Camera2 Direct manipulation of real objects Manipulation takes place in 3D space High-accuracy extraction of finger contours Predicts 3D positioning of fingertips Simple scrapbooking Brainstorming support Manipulating 3D objects Creates new ICT applications that assimilate into a real-world environment 18

Storage and Search Technology for Massive Volumes of Linked Open Data (LOD) *LOD: Linked Open Data Rapid searching of LOD link structures at 5 to 10x conventional speeds Bird s-eye view of overall LOD enables intuitive searches Public data sites Gov t Media Geographic data Common terminology Publications (Libraries) Life sciences LOD Utilization Platform (40 billion pieces ) Search interface Standard API * (SPARQL) *API: Application Programming Interface High-speed searching No need to search individual websites Simple processing On-site IT Systems Sale Inventory Customer support New composite data services for various fields by incorporating enterprise IT systems 20

Resource Pool Architecture for On-demand Server Provision Implements a disk area network using high-speed interconnect technology, enabling on-demand configuration of physical servers Resource Pool Architecture Disk area network User System On-demand resource provision CPU/Memory pool Disk pool Physical IaaS platform (Software Defined Server Platform) User Network Enables the efficient utilization of hardware resources, short-term deployments of high-performance servers 22

23 Generating Innovation through Advanced Technologies Society s Sustainable Growth: For a Prosperous Society in which People Can Live Safely and Securely

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 forward-looking 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.