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Copyright 2009 FUJITSU LIMITED FUJITSU CONFIDENTIAL Akira Motomiya Corporate Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities -Environmental Protection and Economic Efficiency-

Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

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Page 1: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITEDFUJITSU CONFIDENTIAL

Akira MotomiyaCorporate Logistics Unit

Fujitsu Limited

Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Page 2: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITED1FUJITSU CONFIDENTIAL

Fujitsu at a GlanceFujitsu at a Glance

Note: Consolidated net sales and R&D expenditure for fiscal year ended March 31, 2009.US$1 = ¥98 . WW employees as of June 2009.

Headquarters: Tokyo, JapanPresident: Michiyoshi MazukaEstablished: June 1935Net Sales: 4,692.9 billion yen (US$47,888 million)R&D Expenditure: 249.9 billion yen (US$2.6 billion)Employees: 186,000 worldwidePrincipal Business Areas: Technology Solutions

Ubiquitous Product SolutionsDevice Solutions

Stock Exchange Listings: Tokyo (Code: 6702),Osaka, Nagoya,Frankfurt, London, Swiss

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Copyright 2009 FUJITSU LIMITED2FUJITSU CONFIDENTIAL

Technology Solutions

FY 2008 Revenue by Business SegmentConsolidated Net Sales by Business Segment, Including Intersegment Sales

Business CompositionBusiness Composition

¥3,077.0 billion(US$31,399 million)

¥949.1 billion(US$9,685 million)

¥587.6 billion(US$5,997 million)

¥446.2 billion(US$4,553 million)

• LSI Devices• Electronic Components• Others

• PCs/Mobile Phones• Hard Disk Drives• Others

• System Platforms• System Products• Network Products

• Services

8.8%11.6%

18.8%60.8%

Note: Percentage breakdown for each segment is calculated as segment’s net sales / ( total consolidated net sales + elimination). US$1 = ¥98. FY 2008 is fiscal year ended March 31, 2009.

Device Solutions

Other Operations

Ubiquitous Product Solutions

Page 4: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITED3FUJITSU CONFIDENTIAL

14.0%

¥391.4 billion(US$4.0 billion)

Business CompositionBusiness Composition

¥657.0 billion(US$6.7 billion)

Note: Regional sales outside Japan are sales to customers based in those regions by Fujitsu Limited and Fujitsu Group companies, including subsidiaries within or outside that region. Sales of Fujitsu Siemens Computers are not included in EMEA total. US$1 = ¥98. FY 2008 is fiscal year ended March 31, 2009.

¥451.3 billion(US$4.6 billion)

FY 2008 Revenue by RegionConsolidated Net Sales to Unaffiliated Customersby Customer’s Geographic Location

EMEA

The Americas

APAC & China

68.0%

9.6%8.4%

¥3,193.1 billion(US$32.6 billion)

Japan

Page 5: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITED4FUJITSU CONFIDENTIAL

Contribute to Creating Prosperous, Low-Carbon Society

Fujitsu Group Green ICTContribute to Creating Prosperous, Low-Carbon Society

Fujitsu Group Green ICT

“We make every activity green”

"Green Policy 21“Long-term Environmental Concept of Fujitsu Group

In Factories

Facilities Management SystemFuturic

Production Scheduling System

GLOVIA/SCP FA

CO2 emissionsreduced by about 47%

CO2 emissionsreduced by about 60%

Environmental Performance System

Records Management SystemSLIMOFFICE

Visualization of environmental

performance data

In Department Storesand Supermarkets

POS Systems for Mass Merchandisers

GlobalSTORE III

Internet ShoppingSystem

i . market

CO2 emissionsreduced by about 30%

CO2 emissionsreduced by about 25%

Fujitsu Group’s Green ICT

Environmental Information System

(Contaminant emissions management)

e-FEINSEnvironmentalrisk reduction

In Office Buildings、On Farms、In Hospitals、In Local and National Government・・・These Green ICT efforts by the Fujitsu Group are contributing to reducing the environmental burden in all areas of society.

Operations Support System

In-Vehicle Station (Dejitako)

CO2 emissionsreduced by about 19%

Distribution Center SystemLOMOS/DJ

CO2 emissionsreduced by about 58%

ETC Infrastructure System

ETC Infrastructure System

CO2 emissionsreduced by about 24%

Contact in USARon MitchellSenior Vice PresidentCorporate MarketingFujitsu America, Inc℡ 416-594-4759E-mail : [email protected]

In Traffic andTransportation

Page 6: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITED5FUJITSU CONFIDENTIAL

"Green Policy Innovation“ ProjectReducing Customer’s Environmental loads by Green ICT: OF ICT and BY ICT

Fujitsu Group Environmental Activities

R&D, design, manufacturing, procurement, distribution and recycling

Reductions in Environmental Burdens with

ICT

Green Policy Solutions

Software/Services (Outsourcing, Consulting etc)

Platforms, Networks, Software, Ubiquitous,Electronic Devices, Semi-Conductors

Fujitsu Green IT

Green Policy ProductsEnvironmental Burdens

Reduction byICT

(0.8M tons)

(6.3M tons)

Reducing Customer’s Environmental Burden with ICT

Expected to reduce4.31Million tons by FY09

Contributing to reduction in CO2 emissions ofover 7 Million TonsFY2007 to FY2010

EnvironmentalKnow-How due

to In-House Implementations

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Copyright 2009 FUJITSU LIMITED6FUJITSU CONFIDENTIAL

Greenhouse Effect Gas Emission in Japan

Kyoto Protocol:Reduce Green House Emission by 6% Compared to 1990 by 2010Total Emission : 1990 → 2005 +7.7%Transportation : 1990 → 2005 +18.4%

CO2 Emission was IncreasedIncluding Transport

(Unit: 1mil ton-CO2)

1990年 2005年 2007年 2008年 2010年

emission amount emission amount year baseline emission amount year baseline emission amount year baseline emission amount year baseline

Green house effect gas tota

CO2

Energy origin Co2

Industrial

Transportation

Business Operation

Residential Industry

Energy

Non origin energy CO2

Methane (CH4)

dinitrogen monoxide(N2O)

alternate 3rd freon gas 51 23 ▲54.9% 24 ▲52.9%

33 25 ▲24.2% 24 ▲27.3%

24 ▲52.9%

▲3.5%

33 23 ▲30.3% 22 ▲33.3%

85 84 ▲1.2% 82

41.7%

69 78 13.0% 83 20.3%

127 174 37.0% 180

13.4%

164 238 45.1% 242 47.6%

217 257 18.4% 246

482 456 ▲5.4% 468 ▲2.9%

15.1% 1,138 7.5% 1,059 1,203 13.6% 1,219

8.7% 1,186 ▲6.0%

1,144 1,287 12.5% 1,301 13.7%

1,261 1,358 7.7% 1,371 1,286 2.0%

1,216 6.3%

420 ▲12.9%

236 8.8%

232 41.5%

172 35.4%

78 13.0%

78 ▲8.2%

22 ▲33.3%

24 ▲27.3%

From April 2006, Energy Conservation Law was Revised and Energy Saving was Obliged to Transportation Sector

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Copyright 2009 FUJITSU LIMITED7FUJITSU CONFIDENTIAL

Revised Energy Conservation LawIn addition to Forwarders, Cargo Owner’s such as Fujitsu are required to comply with the law and to take energy saving action.

The forwarder that has above certain transport ability.

The forwarder that has above certain transport ability.

The cargo owner’s that order above the certain amount of cargo transport.

The cargo owner’s that order above the certain amount of cargo transport.

※Each enterprises baseline of judgment Auto car cargo use above 200

passenger use above 200 (bus)above 350 (taxi)

Rail way cargo・passenger use both above 300 etc.

※Transportation amount per year is above 30 million ton・kilo ( Including own logistics)

○Make energy saving plan○Report the energy use consumption and CO2 etc.

○Make energy saving plan○Report energy use consumption and CO2○Reduce CO2 Emission more than 1%/year etc.

Specific transportation enterprises Specific shipper

Fujitsu started activities not only to comply with the law but also toimprove logistics efficiency and to meet customer’s requirement

Forwarder and Cargo Owner’s

Fujitsu transportation amount (08 Act) 62M ton/kilo

Collect energy consumption report from forwarders

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Copyright 2009 FUJITSU LIMITED8FUJITSU CONFIDENTIAL

Basic Policy for Environmental Protection ActivitiesBasic Policy for Environmental Protection Activities

Critical Situation of Earth Environment

Earlier Protection Activities make More Effects

Protection Activities are Essential for Further Enterprise Growth

Economic Rationality is necessary for Protection Activities

Proactively Promote Green Logistics Activities,since it will be a Basis for Company’s Growth

In Logistics, Environmental point of view is added to Cost Reduction Activities

Increase of Drought, Collapse of Ecosystems, Increase of Typhoonand Flood, Reduction of Grain Productivity due to Drought, Increase of Infection etc

2000 21001000

+6.0

0.0

-0.5

+5.0

+4.0

+3.0

+2.0

+1.0

[℃]

IPCC Report (Nov ’07)1.1℃~6.4℃ Increase

by 2100(2°F~11.5°F)

Temperature Increase Prospect by 2100

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Copyright 2009 FUJITSU LIMITED9FUJITSU CONFIDENTIAL

Lead Environmental Activities bySetting Top-Level Goal in Electronics Industry

Pursue Environmental Protection and Cost Reduction at once

Enforce Activities as Fujitsu Group’s Activity

Realize Innovative Activities by Strong Partnership with Service Providers

<Transport CO2 Emission Reduction Goal>

Reduce Absolute Amount 40% by 2010 Compared to 2000

Fujitsu

Reduce 10% by 2010 compared to 2005NReduce 4% CO2 per production amount by2010 compared to 2006

P,H

(25% Reduction by 2010 compared to 2005)

*Fujitsu Set Top-Level Absolute Emission Amount Goal in Industry including Business Growth

Our Policy for Green Logistics ActivitiesOur Policy for Green Logistics Activities【Relation to Green Logistics Activities】

・Apply for Long Distance Transportation

□Countermeasure

・Earlier Products Release from Factory

【Activity Structure】

Corporate Logistics

Service P

artners

BU

・・

Network

Server

PC

Mobile Phone

Subsidiaries

○:Positive Impact, △:Positive/Negative Impact,-:Neutral

FJ Group゚

・・

JointActivity

Bring Out Proposals

Environment Cost Leadtime

StowageImprovement ○ ○ -

Modal Shift ○ △ △

Eco FriendlyDriving ○ ○ -

Can be Changed to ○ by

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Copyright 2009 FUJITSU LIMITED10FUJITSU CONFIDENTIAL

Characteristics of Our Products Logistics

★Customer

(Cross Docking)

Green Logistics + Cost Reduction

Effort by Hole Supply Chain

Improve Stowage

・Accurate Logistics Specification

・Proper Logistics Service

Expand Modal Shift・Devise Operation

<Examples>

Factory(Printer)

Factory(Server)

Factory(Storage System)

①Eco-Friendly Logistics Model

③Improve Stowage

②Internet Electric Trading System

④Expand Modal Shift

Box Product

Bare Product=Packingless

Transportation of ICT Equipment :Mainly by Chartered Truck

→Need Protection Pad

Sensitive for Shock

・Server

・Network

・PC

・Mobile Phone

→Require Many Laborers

70%

30%

・Large Printer

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Copyright 2009 FUJITSU LIMITED11FUJITSU CONFIDENTIAL

■DC Consolidation in Metropolitan Area(5 to 3)

Expand Handling Volume at each DC

■Establish Concentrated Vehicle Assignment Control Support System

Best Car Allocation by Combining Shipper’s Cargo and Information through Procurement to Sales

*Joint Project of 8 companies (FJ, Subsidiaries x 3, Sales Company x 1, Suppliers x 2, Forwarder x1)

■Introduce Driving Support SystemEco-Driving with our In-Vehicle Terminal

■Establish CO2 Calculation SystemEstablish Transportation CO2 Emission Automatic Calculation Tool

■DC Consolidation in Metropolitan Area(5 to 3)

Expand Handling Volume at each DC

■Establish Concentrated Vehicle Assignment Control Support System

Best Car Allocation by Combining Shipper’s Cargo and Information through Procurement to Sales

*Joint Project of 8 companies (FJ, Subsidiaries x 3, Sales Company x 1, Suppliers x 2, Forwarder x1)

■Introduce Driving Support SystemEco-Driving with our In-Vehicle Terminal

■Establish CO2 Calculation SystemEstablish Transportation CO2 Emission Automatic Calculation Tool

(Before) Each process (Procurement/Manufacturing/Sales) andEach Subsidiaries allocates trucks cars and deliver individually

Procurement Manufacturing Sales

Customer

Joint Delivery

Milk Run

Concentrated Assignment Joint DistributionConcentrated Assignment Joint Distribution

Control CenterControl Center

Logistic

s Relate

d Data

Return Vehicle

ManufacturingPlant

Parts Supplier

DCr

DC

Warehouse Consolidation

Parts Supplier

・・・

Parts Supplier

<Delivery Instruction>

Customer

Customer

CustomerCustomer

Customer

【Concentrated Vehicle Assignment Control (Image)】

DC

①Eco-Friendly Logistics Model (1)CO2 Reduction by Concentrated Vehicle AssignmentControl through Parts Procurement to Product Delivery

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Copyright 2009 FUJITSU LIMITED12FUJITSU CONFIDENTIAL

①Eco Friendly Logistics Model (2)

(Weight, Volume, Delivery Condition etc)

Control Center

VehicleAssignment

VehicleAssignment

LogisticsInformation

LogisticsInformation

LogisticsInformation

LogisticsInformation

Logistics InformationConcentrated

Vehicle Assignment

System

Concentrated VehicleAssignment Support System

Concentrated VehicleAssignment Support System

Logistics Partner

・Joint Delivery・Return Vehicle・Rail Shipment

UnifiedData Format

FujitsuFujitsu SupplierSupplier SubsidiariesSubsidiaries Sales CompanySales Company

□Make Logistics Related Date

Control CenterControl CenterChoose Best and OptimizedTransportation Method byUsing the Data

CargoInformation

WeightVolume

DeliveryInstruction

Spare Parts,Repair etc

Products

DeliveryInstruction

<Delivery Instruction>・Route、Time Chart・Number of Vehicles・Delivery Condition etc

<Delivery Instruction>・Route、Time Chart・Number of Vehicles・Delivery Condition etc

Master

WeightVolume

□Introduce our Driving Support System (In-Vehicle Terminal)

□Introduce CO2 Emission Calculation System・Automatic CO2 Calculation of each shipper by using Data of In-Vehicle Terminal and Shipping Details

・Measure Vehicle Data (Drive Distance, Mileage etc)

・Encourage Drivers to Drive Economy and Safety by alarmingfunction for idling and sudden acceleration/deceleration

⇒ Improve Mileage +4% (Average of 2t Trucks)

Make Logistics Related data (Weight, Volume etc) by Installing Measuring Equipment

Logistics CenterLogistics Center

Customer of B

Customer of A

Company A

Company B

Company C

In-VehicleTerminal

MeasureDistance

MeasureDistance

MeasureDistance

MeasureDistance

MeasureDistance

MeasureDistance

Input PODInput POD

Input PODInput POD

Input PODInput POD

Customer of CCompany A:CO2**tCompany B:CO2**tCompany C:CO2**t

CO2Calculatio

nSystem

Provide to each Company

POD: Proof Of Delivery

Impact CO2 Reduction : 313t/▲21%Cost Reduction : US$1.9M/▲19%

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Copyright 2009 FUJITSU LIMITED13FUJITSU CONFIDENTIAL

Service Provider A

LogisticsOperation

GroupCompanies

Product

POD/Management

Verification

ConfirmedOrder

POD/OperationalInformation

A/R

Instruction/Revision

ResisterA/P

Fujitsu Group Daily Operation

Unified

I/F

Internet

Generate Logistics

Spec

Electric Trading System

<Overview> <Schedule>

②Internet Electric Trading SystemNew System= Generate Logistics Specification (Weight, Volume/Package etc) +

Confirmed Order Placement/Verification

Visualize Cost per Products/Operation

Review Cost,Logistics Spec

Contribute to ReduceCO2 and Cost

FY2009 FY20101FH 2FH 1FH

Application Schedule

~FY2008

SeverStorage System

Mobile System

▼Mobile Phone

PCIA ServerNetwork System

DataAnalysis

Order/

Verifi-cation

2010 MayGo Live

2010 JanGo Live

LogisticsSpecificationGeneratingSystem

OrderPlacement/VerificationSystem

Page 15: Fujitsu Green Logistics Activities - ::: Japan International ... Logistics Unit Fujitsu Limited Fujitsu Green Logistics Activities-Environmental Protection and Economic Efficiency-

Copyright 2009 FUJITSU LIMITED14FUJITSU CONFIDENTIAL

Joint Activities with Logistics Partner for Stowage ImprovementJoint Activities with Logistics Partner Joint Activities with Logistics Partner for for StowageStowage ImprovementImprovement

Logistics PartnerLogistics PartnerLogistics PartnerFujitsuFujitsuFujitsu

Restriction for Efficient Vehicle Restriction for Efficient Vehicle AssignmentAssignment

Improve

Improve

Activities

Activities

Business

Business

Pay byPay byVehicleVehicle

【【ActualActual】】((Jun 08Jun 08~~Sep 09Sep 09))

((Unclear Logistics Spec, Emergency Request etcUnclear Logistics Spec, Emergency Request etc))

Provide AccurateProvide AccurateLogistics SpecificationLogistics Specification((Weight, Volume / Package etcWeight, Volume / Package etc))

WinWin

Manage Vehicle AssignmentManage Vehicle Assignment((Restricted Efficiency by RestrictionsRestricted Efficiency by Restrictions))

Visualize Stowageper Vehicle

合意の積載率以上の達成

CDA Achieve Agreed Stowage

WinWin

Before

Before

Contribute to CO2 ReductionContribute to CO2 Reductionand Cost Reductionand Cost Reduction

Reflect to “per Package” Price

Gain Sharing

1049ton ▲12% US$6.5M▲11%

LoadingRatio

+14.9%

CO2Reduction

CostReduction

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Copyright 2009 FUJITSU LIMITED15FUJITSU CONFIDENTIAL

0 50 100 150 200 250 300

④Expand Modal Shift (1)

*Source : “Global warming protection of transport field” by The Ministry of Land, Infrastructure and Transport*Source : “Global warming protection of transport field” by The Ministry of Land, Infrastructure and Transport

Issues of Railway Transportation①Leadtime : Restricted by Japan Railway Time Table ⇒ Transportation Plan based on JR Schedule②Cost : More Expensive than Truck for Short ⇒ Use only for Long Distance

Distance Shipment③Quality : Difficult to Use for Precise Equipment ⇒ Review Packing Specification

Countermeasures

CO2 Emission of Railway TransportationCO2 Emission that is required to carry 1ton package per 1km(g-CO2/t㎞)

Truck

Sea freight

Railway

38

21

153

1490Air freight

14

17

About 10times CO2 Emission of Railway is1/7 of Truck

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Copyright 2009 FUJITSU LIMITED16FUJITSU CONFIDENTIAL

Installation of “Transpiration Mode Selection System” Enables to Choose Various Delivery Leadtime *Previous 3days LT Only ⇒ 3 patters (2/3/4 days LT)

Start Modal Shift for 4 or more days LT (04/Oct)

Installation of “Transpiration Mode Selection System” Enables to Choose Various Delivery Leadtime *Previous 3days LT Only ⇒ 3 patters (2/3/4 days LT)

Start Modal Shift for 4 or more days LT (04/Oct)

Same LT by Area【Before Implementation *Example for Monday Order】

DC3 day LT

after Order

FRITHUWEDTUEMON

Assembly at Factory DeliveryOrder Entry

Adjust by Customer’s Request【After Implementation (04/Oct~)】

FRITHUWEDTUEMON

Order Entry

Order Entry

DC

2 days LTAfter Order Assembly at Factory

Assembly at Factory Delivery

Delivery

Railway (Modal Shift)

4 days > LT after

Order Order Entry Assembly

at FactoryDelivery

Select M

odeS

elect Mode

DC

3 days LTAfter Order

Emergency Only

④Expand Modal Shift (2)

◎Start Application from Corporate PC

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Copyright 2009 FUJITSU LIMITED17FUJITSU CONFIDENTIAL

④Expand Modal Shift (3)□Improve Stowage by Optimizing Pallet Size

Add New Size (850mmx1,100m) to Standard Size (1,100mmx1,100mm) byCorporation with Design Section

Pallet Quantity per Train Container 6 pcs⇒8 pcs [Stowage 30%UP]

□Modal Shift Ratio (Desktop PC, IA Server)

□Impact(Transportation Mode Selection System + Pallet Size Optimization)

・CO2 Reduction:363t/year(▲30%)

Train Container

2,266㎜

3,647㎜

New SizeStandard Size Train Container

3,647㎜

2,266㎜

・Cost Reduction:US$0.7M/year(▲2%) 0%

20%

50%

FY07Ave

FY081Q 2Q 3Q 4Q

FY091Q 2Q

40%

30%

10% Modal Shit Ratio : Over 40% since FY08/3Q

・FY07:21%⇒1FH08:24%⇒1FH09:45%

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Copyright 2009 FUJITSU LIMITED18FUJITSU CONFIDENTIAL

⑤Other Activities

Promote Activities with Upstream Divisions (Design, Manufacturing, Sales etc)

Joint Transportation with Other Shippers

Clarity Restrictions to Stowage from Upstream Process, and Improve withOther Related Divisions

Introduce Eco Friendly Vehicle, Eco Driving

Improve Mileage by Hybrid Trucks (Planned in Jan’10)

With Other Electronics Companies, Joint Transportation Project is on going(Studying Conditions, such as Time Chart, Delivery Condition, Cost etc)

Improve Stowage by Changing Packing Specificationeg. Note PC : 5 tiers →6 tiers (Jun ’08)

Improve Stowage by Changing Products/PackagingSize Specification

eg. Mobile Phone : 600 units/pallet→700 units (Dec ’08)

[Double Decker Truck]

Improve Mileage by Low Rolling Resistance Tire(Planned in Jan ’10)

Reduce Number of Trucks by Double Decker Truck (Sep ’09)

[Fujitsu In-Vehicle Terminal]

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Copyright 2009 FUJITSU LIMITED19FUJITSU CONFIDENTIAL

In ClosingIn Closing

Fujitsu Contributes to Creating a Prosperous, Low-Carbon Societyand Earth Environmental Protection Consequently

Fujitsu Contributes to Creating a Prosperous, Low-Carbon Societyand Earth Environmental Protection Consequently

GloballyHelps reduce nature degradation

CustomersReduce customer’s environmental burden

Fujitsu GroupEliminate own environmental burden

SocietyImprove overall green efficiency

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Copyright 2009 FUJITSU LIMITED20FUJITSU CONFIDENTIAL