Slide 1: 3Q FY2023 Consolidated Financial Results
3Q FY2023 Consolidated Financial Results January 31, 2024 Fujitsu Limited 1 © 2024 Fujitsu Limited
Slide 2: Financial Results for 3Q FY2023 (Adjusted)
Financial Results for 3Q FY2023 (Adjusted) 2 © 2024 Fujitsu Limited
Slide 3: FY2023 First 9 Months Results: Overview
FY 2023 First 9 Months Results: Overview (Billions of yen) Service Solutions Service Solutions ▎ Continued strong performance, especially in vs Revenue 1,522.0 LY +12.9% Japan. Revenue grew by 12.9%. 》 Strong growth from orders of 16% Adjusted vs 》 Fujitsu Uvance grew by 1.67 times Operating Profit
Slide 4: Business Segment Information (9 Months)
Business Segment Information (9 Months) (Billions of yen) 9 Months 9 Months Change (％) FY2022 FY2023 Revenue 1,386.5 1,522.0 135.4 9.8 Excl. Impact of Service restructuring 1,347.9 1,522.0 174.1 12.9 Solutions Impact of restructuring 38.6 - -38.6 - Adj. Operating Profit 54.4 116.3 61.8 113.6 Hardwar
Slide 5: Business Segment Information (Adjusted)
Business Segment Information (Adjusted) 5 © 2024 Fujitsu Limited
Slide 6: Service Solutions
Service Solutions ◼ Service Solutions (Billions of yen) 9 Months 9 Months Change (%) FY2022 FY2023 ▎ Revenue Revenue 1,386.5 1,522.0 135.4 9.8 Very solid growth in DX and modernization deals in Excl. Impact of 1,347.9 1,522.0 174.1 12.9 Japan restructuring [Fujitsu Uvance] [147.9] [247.3] [99.4] [
Slide 7: Breakdown by Quarter
Service Solutions Breakdown by Quarter 113% Revenue growth ratio (Excl. Impact of 110% 117% 112% restructuring, %) 7.6% 9.8% Adjusted Operating Profit Margin (%) 8.2% 7.4% 3.9% 116.3 4.5% 52.8 42.5 35.4 54.4 Adjusted Operating 2.0% 2.2% Profit 20.9 (Billions of yen) 9.0 10.0 1Q 2Q 3Q 9 Months FY2022
Slide 8: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +174.1 / Adjusted Operating Profit +61.8 +27.9 -24.1 +58.1 7.6% Improvement Investment in profitability expansion, etc. (Development cost of （Gross margin ratio +1.5%) Uvance, etc.) 3.9% 116.3 Increase in
Slide 9: Orders in Japan
Service Solutions Orders in Japan Significant growth of 16%, primarily an expansion of DX and modernization deals FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months Japan 111% 105% 100% 112% 118% 118% 115% 116% Private Enterprise Business [Manufacturing & Distribution & Retail] 108% 105% 101% 109% 107% 115
Slide 10: Orders in Regions (International)
Service Solutions Orders in Regions (International) Solid growth globally in Fujitsu Uvance business FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months Europe 101% 170% 85% 75% 104% 61% 164% 99% Americas 99% 87% 87% 88% 137% 247% 66% 135% Asia Pacific 93% 130% 242% 111% 117% 84% 47% 83% 10 © 2024 Fujitsu L
Slide 11: Fujitsu Uvance
Service Solutions Fujitsu Uvance We are accelerating the release of vertical offerings and are on track to exceed our revenue forecast. Cumulative orders for the first 9 months: 295.6 billion yen + 79% vs LY. 700.0 (Billions of yen) Forecast by Fiscal Year 9 Months Forecast (FY22→23→25) Vertical (FY
Slide 12: Improvement in Profitability and Growth Investments
Service Solutions Improvement in Profitability and Growth Investments Improvement in profitability +27.9 billion yen Investment expansion -24.1 billion yen Trends in gross margin Development expenses for 9 Months 9 Months offerings vs LY FY2022 FY2023 31.8% 33.3% 1.5% Development of highly-skilled h
Slide 13: Breakdown by sub-segment
Service Solutions Breakdown by sub-segment (Billions of yen) 9 Months 9 Months FY2022 FY2023 Change (％) ▎ Global Solutions Revenue 1,386.5 1,522.0 135.4 9.8 Higher revenue, primarily from Fujitsu Uvance Excl. Impact of 1,347.9 1,522.0 174.1 12.9 restructuring Higher revenue and profitability, with a
Slide 14: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) 9 Months 9 Months ◼ System Products Change (%) FY2022 FY2023 • Higher revenue, mainly from foreign exchange movements Revenue 795.9 748.0 -47.9 -6.0 ◼ Network Products System Products 611.7 629.1 17.4 2.9 • Pull-back from prior year’s strong demand for both mob
Slide 15: Device Solutions and Inter-segment Elim./Corporate
◼ Device Solutions (Billions of yen) ◼ Revenue 9 Months 9 Months Change (%) Lower revenue on continued weak demand for FY2022 FY2023 semiconductor packages Revenue 304.3 212.4 -91.8 -30.2 Adjusted 70.9 12.7 -58.2 -82.1 ◼ Adjusted Operating Profit Operating Profit [Adj. Operating profit [23.3%] [6.0%
Slide 16: Transformation Initiatives
Transformation Initiatives 16 © 2024 Fujitsu Limited
Slide 17: Service Solutions – Regions (International)
Transformation Initiatives Service Solutions – Regions(International) ▎Accelerating a shift in the business portfolio to improve profitability Expansion of Fujitsu Uvance – Regions (International) Strategic Restructuring of Services Business [Press release dated November 15, 2023] ▎Growth in global
Slide 18: Hardware Solutions
Transformation Initiatives Hardware Solutions [Press release dated December 26, 2023] ▎Integrating core functions of development, manufacturing, sales, and maintenance of servers and storages business* into Fsas Technologies Inc. (Launch on April 1, 2024) ▎Building an organization providing integrat
Slide 19: Ubiquitous Solutions
Transformation Initiatives Ubiquitous Solutions ▎Exiting the Client Computing Devices business* in Europe because of severe competition and difficulty of maintaining profitability (to be completed in April 2024) ・One time loss of over approximately 20.0 billion yen (recorded as an adjusted items to
Slide 20: Device Solutions
Transformation Initiatives Device Solutions [Timely disclosure dated December 12, 2023] ▎Conclusion of the agreement to sell shares in Shinko Electric Industries Co., LTD. ・Concluded agreement with JICC-04, owned by JIC Capital, LTD. , the wholly owned subsidiary of Japan Investment Corporation, wit
Slide 21: Adjusted Operating Profit and Adjusted items
Transformation Initiatives Adjusted Operating Profit and Adjusted items (Billions of yen) 9 Months FY2023 Change Operating Operating Revenue % Revenue % Profit Profit Growth Rate 100.2% Adjusted Consolidated 2,642.7 118.8 4.5 5.9 -32.9 -1.3 Results Adjusted items from GAAP - -70.7 - -92.2 Operating
Slide 22: Cash Flows, Assets, Liabilities and Equity
Cash Flows ・Assets, Liabilities and Equity 22 © 2024 Fujitsu Limited
Slide 23: Cash Flows (Consolidated)
Cash Flows (Consolidated) （Billions of yen） 9 Months 9 Months Change FY2022 FY2023 Core Free Cash Flow * 35.8 75.0 39.2 * Ordinary free cash flow, excluding one-time cash inflows or outflows from such activities as business restructurings, structural reforms, and acquisitions or divestitures.(Detail
Slide 24: Core Free Cash Flow and Adjusted items
Core Free Cash Flow and Adjusted items (Billions of yen) 9 Months 9 Months Change FY2022 FY2023 Core Free Cash Flow 35.8 75.0 39.2 Adjusted items from GAAP Free Cash Flow 13.8 -5.5 -19.3 Business transfers 90.5 49.6 -40.9 Business model transformation expenditures -64.2 -3.8 60.4 M&A related expendi
Slide 25: Assets, Liabilities and Equity
Assets, Liabilities and Equity (Billions of yen) Year-end End of Change FY2022 3Q FY2023 Total Assets 3,265.5 3,230.1 -35.4 Total Liabilities 1,528.7 1,468.4 -60.3 Total Equity 1,736.8 1,761.7 24.8 Total Equity Attributable to Owners of the Parent 1,586.8 1,603.3 16.5 Reference: Financial Indices In
Slide 26: Earnings Forecast for FY2023
Earnings Forecast for FY2023 26 © 2024 Fujitsu Limited
Slide 27: Financial Forecast
Financial Forecast (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change (%) （Actual） Previous Forecast Forecast Revenue 3,713.7 3,810.0 - 96.2 2.6 Excl. Impact of restructuring 3,675.0 3,810.0 - 134.9 3.7 Impact of restructuring 38.6 - - -38.6 - Adjusted Operating Profit 320.8 320.0 -
Slide 28: Business Segment Information
Business Segment Information (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change (％) （Actual） Previous Forecast Forecast Revenue 1,984.2 2,170.0 - 185.8 9.4 Excl. Impact of restructuring 1,945.5 2,170.0 - 224.4 11.5 Service Impact of restructuring 38.6 - - -38.6 - Solutions Adj. Oper
Slide 29: Business Segment Information 4Q
Business Segment Information 4Q (Billions of yen) FY2023 Change 9 Months 4Q Total 9 Months 4Q Total (Actual) (Forecast) (Forecast) Service Revenue 1,522.0 647.9 2,170.0 135.4 50.3 185.8 Solutions Adj. Operating Profit 116.3 138.6 255.0 61.8 30.1 92.0 Hardware Revenue 748.0 311.9 1,060.0 -47.9 -24.4
Slide 30: Financial Forecast - Adjusted Consolidated Results and Adjusted items
Financial Forecast - Adjusted Consolidated Results and Adjusted items (Billions of yen) 9 Months FY2023(Actual) FY2023(Forecast) Change vs. Adjusted Consolidated Adjusted Consolidated Previous Adjusted Adjusted Forecast Consolidated Results Consolidated Results Items Items Results Results Revenue 2,
Slide 31: Cash Flows
Cash Flows (Billions of yen) Change vs. FY2022 FY2023 Previous (Actual) (Forecast) Forecast Core Free Cash Flow 157.1 215.0 - Free Cash Flow 177.5 160.0 - 31 © 2024 Fujitsu Limited
Slide 32: Reduction of Investment Unit
Reduction of Investment Unit 32 © 2024 Fujitsu Limited
Slide 33: Stock Split
Stock Split [Timely disclosure dated January 31, 2024] To make it easier for investors to invest by reducing the amount per investment unit Purpose To increase the liquidity of our stock and expand our investor base Overview of 10 shares for every share held [Effective date: April 1, 2024] Stock Spl
Slide 34: Thank you
Thank you 34 © 2024 Fujitsu Limited
Slide 35: Cautionary Statement
Cautionary Statement These materials may contain forward-looking statements that are based on management’s current information, 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
Slide 36: Supplementary
Supplementary 36 © 2024 Fujitsu Limited
Slide 37: Consolidated PL (9 Months)
Financial Results Consolidated PL (9 Months) Adjusted Consolidated Results (Billions of yen) 9 Months 9 Months Change (％) FY2022 FY2023 Revenue 2,636.7 2,642.7 5.9 0.2 Excl. Impact of restructuring 2,598.0 2,642.7 44.6 1.7 Impact of restructuring 38.6 - -38.6 - Adjusted Operating Profit 151.7 118.8
Slide 38: Consolidated PL by quarter
Financial Results Consolidated PL by quarter Adjusted Consolidated Results (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Revenue 818.8 886.4 931.4 1,077.0 3,713.7 799.6 912.2 930.8 Excl. Impact of restructuring 795.6 871.0 931.4 1,077.0 3,675.0 799.6 912.2 930.8 Impact of restructuring
Slide 39: Business Segment Information by quarter
Financial Results Business Segment Information by quarter (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Service Revenue 445.6 459.5 481.4 597.6 1,984.2 465.4 518.7 537.8 Solutions Adj. Operating Profit 9.0 10.0 35.4 108.5 162.9 20.9 42.5 52.8 Global Revenue 93.8 90.3 95.6 127.4 407.2 10
Slide 40: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) FY2023 Change FY2022 FY2023 1Q 2Q 3Q 9 Months 1Q 2Q 3Q 9 Months (Actual) (Forecast) Vertical 13.2 24.0 30.6 67.9 7.1 18.4 23.2 48.7 30.0 110.0 Horizontal 59.7 74.1 93.8 227.6 11.4 33.6 37.1 82.0 220.0 250.0 Orders (%) 134% 213% 194% 179% 144% Total
Slide 41: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) 3Q 9 Months FY2022 FY2023 Change FY2022 FY2023 Change Revenue 150.9 157.1 6.2 414.5 445.6 31.1 Regions (International) Adj. Operating Profit -2.0 3.0 5.0 -5.3 -3.2 2.1 Revenue 99.0 109.8 10.8 273.3 308.8 35.4 Europe Adj. Operat
Slide 42: Adjusted items from GAAP Operating Profit
Financial Results Adjusted items from GAAP Operating Profit (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Adjusted Operating Profit 28.0 46.7 76.9 169.0 320.8 2.6 48.1 68.0 Adjusted items from GAAP Operating Profit -2.4 28.5 -4.6 -6.7 14.7 -4.2 -1.7 -64.7 One-time Profit/Loss from busin
Slide 43: Adjusted items from GAAP Free Cash Flow
Financial Results Adjusted items from GAAP Free Cash Flow (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Core Free Cash Flow 127.1 -63.5 -27.7 121.2 157.1 182.8 -91.7 -16.0 Adjusted items from GAAP Free Cash Flow -61.0 44.6 30.1 6.5 20.4 -57.2 0.7 50.9 Business transfers 1.4 56.6 32.5 6.
Slide 44: Business Segment Information [Service Solutions]
Earnings Forecast Business Segment Information [Service Solutions] (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change (％) （Actual） Previous Forecast Forecast Revenue 1,984.2 2,170.0 - 185.8 9.4 Service Adj. Operating Profit 162.9 255.0 - 92.0 56.4 Solutions [%] [8.2%] [11.8%] [-%] [
Slide 45: Assumption used for FY2023 Forecasts: Exchange Rates
Earnings Forecast Assumption used for FY2023 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation FY2023 Impact of Exchange Rate FY2022 9 Months Fluctuation (Actual) 4Q Change vs. 4Q Previous Forecast (Actual) (Forecast) (Forecast)* U.S. dollar / Yen 135 143 130 - -0.2 Billion yen Euro / Ye
Slide 46: Assumption used for FY2023 Forecasts: Capex, Depreciation, R&D
Earnings Forecast Assumption used for FY2023 Forecasts 2. Capital Expenditures and Depreciation （Property, Plant and Equipment） (Billions of yen) 9 Months Full year Change vs. FY2022 FY2023 FY2022 FY2023 Previous Forecast (Actual) (Actual) (Actual) (Forecast) Service Solutions 19.6 21.1 27.8 23.0 -