Considering the harsh market conditions we continued to face, I thought these goals would be difficult to achieve, but we were able to do so thanks to the support of our shareholders and customers, as well as the strong determination of everyone at Fujitsu to keep our promises. On the other hand, we also posted some significant extraordinary losses relating to global restructuring measures focusing on North America and fundamental reforms to our domestic software and services business. These initiatives were intended to aggressively promote overseas business expansion for future growth and to ensure the health and continued strong growth of our software and services business, and we felt it was important to deal with potential problems swiftly and decisively. We were able to offset these losses by generating gains through asset sales and transferring the substitutional portion of our employees’ pension funds to the government system. In fiscal 2003 my goal was to make Fujitsu a sound and healthy company again. Building on the results of the past year, my goal for fiscal 2004 and beyond is to make Fujitsu a truly strong company. Achieving our fiscal 2003 targets was merely the first step toward the larger goal of becoming a strong company.  Looking forward, I have no intention of letting up. I am determined that we move steadily forward by continuing to act from the customer’s perspective, maintaining our commitment to quality and timely delivery, and continuing to increase our institutional speed. 5 Principal Restructuring Initiatives in Fiscal 2003 Strengthened business through operational partnerships Restructured global operations Realigned group companies  (net reduction of 32 consolidated subsidiaries) Jul. 2003  Sep. 2003 Apr. 2004 Integrated Flash memory operations with AMD Fujitsu Leasing received investment from Tokyo Leasing (20% share) Integrated compound semiconductor operations of Fujitsu Quantum Devices and Sumitomo Electric Oct. 2003  Nov. 2003 Apr. 2004 Restructured US platforms business ── Fujitsu Technology Solutions and Fujitsu PC merged into Fujitsu Computer Systems Established Fujitsu (China) Holdings ── Merger of four China-based IT operating companies  Realigned overseas services business ── Alignment of Americas operations under Fujitsu Consulting, European operations under Fujitsu Services, and Australasian operations under Fujitsu Australia Oct. 2003 Oct. 2003 Oct. 2003 Apr. 2004 Fujitsu Microelectronics Solutions  ── Merger of two communications companies for semiconductor development Fujitsu Integrated Microtechnology ── Merger of four semiconductor assembly  companies Fujitsu Network Technologies ── Merger of four communications development companies Fujitsu Applications  ── Three software development companies  merged into two Net sales Operating income Net income Interest-bearing loans ￥$_{4,800 billion}$ ￥$_{150.0 billion}$ ￥$_{30.0 billion}$ ￥$_{1,500 billion}$ or under ￥$_{4,766.8 billion}$ ￥$_{150.3 billion}$ ￥$_{49.7 billion}$ ￥$_{1,277.1 billion}$ Target Actual *at end of FY 2003