Intellectual Property 1. Importance of Intellectual Property 2. Intellectual Property Strategy (1) Objectives Maintaining Superior Competitiveness Assuring Business Flexibility Securing Business Profitability (2) Promotion Structure (3) Patent Rights Patent rights are an important form of intellectual property supporting technologies. We are strengthening and building our patent portfolio by establishing priorities and medium-range to long-term plans for patent filings in each business sector. The Intellectual Property Group, a corporate division, is responsible for planning and proposing strategies regarding intellectual property from the perspective of the entire company. It is also responsible for implementing these strategies in accordance with the business plans of each business unit and in coordination with their intellectual property promotion departments. In recent years, revenues from licensing or transfers of patent rights to other companies have become an important source of company earnings. In line with our business strategy, we engage in licensing or transfer agreements in instances where we determine that licensing a particular technology will generate higher overall earnings than keeping it only for our own use, or in cases in which the intellectual property is associated with a business that we have chosen to discontinue as part of a business restructuring. A strong intellectual property portfolio plays an important role in securing business flexibility. Technology is becoming increasingly sophisticated and complex, and a variety of technologies is often required in a single product or service. In order to freely develop business opportunities, entering into technical tie-ups or cross-licensing agreements with other companies is often an important option to consider. We are therefore working to develop a strong intellectual property portfolio to assure business flexibility and obtain more favorable terms in collaboration agreements.  Differentiating our products and services from those of our competitors is essential to being able to maintain business leadership. At every stage – from the development of technology to its application – we actively strive to secure intellectual property and to utilize it to more effectively differentiate our products and services. Fujitsu pursues research and development aimed at creating value. Through the appropriate protection and use of intellectual property, we can raise the value of our technology and provide products and services that deliver a high level of customer satisfaction. Our technology is also a key source of our competitive strength within the industry. Based on the belief that intellectual property is a vital business asset supporting our strong technologies, we strive to secure and effectively utilize intellectual property in every phase of our business.  Distribution of Patents by Business Group Software & Services  Customer-oriented solutions covering the full IT system lifecycle, from planning to system construction and operations Platforms  Infrastructure-related technologies for the ubiquitous networking era; computers and other product technologies Electronic Devices  System-on-chip and other logic technologies; advanced process technologies Software & Services  17% Electronic Devices  31% Platforms 52% 20