Fujitsu Limited · TSE:6702

Fujitsu — Q3 2020 Earnings Presentation

46 slides from Fujitsu's earnings presentation, Jan 28, 2021

  1. Slide 1: 3Q FY2020 Consolidated Financial Results

    3Q FY2020 Consolidated Financial Results January 28, 2021 Fujitsu Limited 1 Copyright 2021 FUJITSU LIMITED

  2. Slide 2: Contents

    Contents １．Financial Results for 3Q FY2020 ２．Earnings Forecast for FY2020 2 Copyright 2021 FUJITSU LIMITED

  3. Slide 3: 1. Financial Results for 3Q FY2020

    1. Financial Results for 3Q FY2020 3 Copyright 2021 FUJITSU LIMITED

  4. Slide 4: Financial Results [3Q]

    1.Financial Results for 3Q FY2020 Financial Results [3Q] ・While revenue excluding restructuring and special items saw some impact from COVID-19, the results were more or less in line with the previous year, while operating profit saw a significant increase due to improvements in profitability. (Bill

  5. Slide 5: Consolidated PL [3Q]

    1.Financial Results for 3Q FY2020 Consolidated PL [3Q] (Billions of yen) 3Q FY2019 3Q FY2020 Impact of Change （Actual） （Actual） (%) COVID-19 Revenue 923.2 894.3 -28.9 -3.1 -20.1 Operating Profit 50.4 93.4 43.0 85.5 -8.8 [Operating Profit Margin] [5.5%] [10.5%] [5.0%] Financial income (expenses), etc

  6. Slide 6: Consolidated PL [3Q] (QoQ)

    1.Financial Results for 3Q FY2020 Consolidated PL [3Q] (QoQ) ■Revenue • Excl. special items and restructuring Impact of COVID-19 -20.1 billion yen - Negative impact, primarily in Technology Solutions Excluding the impact of COVID-19 +10.3 billion yen - The fall-off in revenue from the unusually high

  7. Slide 7: Financial Results [9 Months]

    1.Financial Results for 3Q FY2020 Financial Results [9 Months] ・While results were affected by the negative impact on revenue due to COVID-19, as well as the fall off in revenue relative to the exceptional high demand in Ubiquitous Solutions last year, improvements in profitability exceeded these fa

  8. Slide 8: Consolidated PL [9 Months]

    1.Financial Results for 3Q FY2020 Consolidated PL [9 Months] (Billions of yen) 9 Months 9 Months Impact of FY2019 FY2020 Change （ Actual） （Actual） (%) COVID-19 Revenue 2,752.0 2,526.2 -225.8 -8.2 -105.2 Operating Profit 121.4 155.7 34.2 28.2 -37.0 [Operating Profit Margin] [4.4%] [6.2%] [1.8%] Finan

  9. Slide 9: Consolidated PL (vs LY - 9 Months)

    1.Financial Results for 3Q FY2020 Consolidated PL (vs LY – 9 Months) ■Revenue • Excl. special items and restructuring Impact of COVID-19 -105.2 billion yen - Negative impact, primarily in Technology Solutions Excluding the impact of COVID-19 -43.6 billion yen - Decline of around 120 billion yen in U

  10. Slide 10: Factors Behind Change in Operating Profit

    1.Financial Results for 3Q FY2020 Factors Behind Change in Operating Profit (Billions of yen) Improvement Excl. Impact of COVID-19 Impact of COVID-19 Rate of change ･Sales +10.3 ･Decrease in sales -20.1 ･Operating Profit +26.7 ･Operating Profit -8.8 [-2%] 93.4 Restructuring and special items ･Sales

  11. Slide 11: Revenue by Segments

    1.Financial Results for 3Q FY2020 Revenue by Segments Breakdown of change vs LY Positive impact excl COVID-19 : System Platforms (5G base station), Device Solutions Negative impact excl COVID-19 : Ubiquitous Solutions (Recoil from the previous year's special demand) Impact of COVID-19 : Revenue decr

  12. Slide 12: Impact of COVID-19 (Revenue)

    1.Financial Results for 3Q FY2020 Impact of COVID-19 (Revenue) Impact of COVID-19 ・Impact on 3Q: Revenue -20.1 billion yen (Impact of reduced revenue -2%) Negative impact:-37.4 billion yen -Cancellation or delay of contracts Positive impact:+17.3 billion yen-New demand, recovery of delayed contracts

  13. Slide 13: Profitability Improvement and Reduction in Operating Expenses

    1.Financial Results Profitability Improvement for 3Q FY2020 Reduction in Operating Expenses Gross margin ratio … Improvement by 1.1% 9 1Ｑ 2Ｑ 3Ｑ Months ・Solutions/services Improvement in profitability continued from the first half Gross margin 28.5% 30.6% 30.5% 29.9% ratio ・System Platforms Improved

  14. Slide 14: Reference: Work Life Shift

    1.Financial Results for 3Q FY2020 Reference: Work Life Shift Implemented Work Life Shift Progress Status Elimination of core time Reevaluating temporary remote postings for Achieved a flexible and more efficient way employees of working Remote working in response to family ※Employees on flex-time sy

  15. Slide 15: Overall orders in Japan (Fujitsu Limited only)

    1.Financial Results for 3Q FY2020 Overall orders in Japan (Fujitsu Limited only) FY2020(Actual) Industries [Excl. Orders [Excl. Orders 1Q 2Q 3Q For PC ] 9 Months For PC ] Private Enterprise [Manufacturing & Distribution] 93% 85% 93% [ 95%] 89% [ 91%] Finance＆Retail 89% 84% 100% [ 102%] 90% [ 94%] JA

  16. Slide 16: Business Segment Information [3Q]

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] (Billions of yen) 3Q FY2019 Special 3Q FY2020 Special Special items/ items/ Change Excl. items/ Impact of （Actual） （Actual） Special items COVID-19 restructuring restructuring restructuring Technology Solutions 770.0 13.6 753.5 5.7 -1

  17. Slide 17: Technology Solutions

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Technology Solutions (Billions of yen) [Revenue] Revenue fell significantly due to the impact of COVID-19 and Technology 3Q FY2019 3Q FY2020 restructuring. Change Impact of COVID-19: -21.8 billion yen Solutions (Actual) (Actual) (%)

  18. Slide 18: Technology Solutions (Solutions/Services)

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Technology Solutions（Solutions/Services） [Revenue] (Billions of yen) Revenue fell significantly due to the impact of COVID-19. Even excluding the impact of COVID-19, revenue fell, as Solutions/ 3Q FY2019 3Q FY2020 there was a drop in

  19. Slide 19: Technology Solutions (System Platforms)

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Technology Solutions (System Platforms) (Billions of yen) [Revenue] (System Products) System 3Q FY2019 3Q FY2020 Change Impact of changes in sales channels due to the closure of a Platforms (Actual) (Actual) (%) factory in Europe: +1

  20. Slide 20: Technology Solutions (International Regions Excluding Japan)

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Technology Solutions（International Regions Excluding Japan） (Billions of yen) [Revenue] International Excluding the negative revenue impact of COVID-19 and 3Q FY2019 3Q FY2020 Regions Change business restructuring, revenue rose by 3%

  21. Slide 21: Technology Solutions (Common)

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Technology Solutions（Common） (Billions of yen) 3Q FY2019 3Q FY2020 Common Change (Actual) (Actual) Excl. Special items -8.4 -9.2 -0.7 Special items 7.3 - -7.3 Operating profit -1.1 -9.2 -8.0 21 Copyright 2021 FUJITSU LIMITED

  22. Slide 22: Two Business Areas for Value Creation (Technology Solutions)

    1.Financial Results Two Business Areas for Value Creation for 3Q FY2020 (Technology Solutions) ■For Growth … Digital（DX、Modernization） The digital domain which encompasses areas of business opportunity for our customers ■For Stability … Traditional IT（Maintenance and operation of systems and sales o

  23. Slide 23: Ubiquitous Solutions

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Ubiquitous Solutions (Billions of yen) [Revenue] Ubiquitous 3Q FY2019 3Q FY2020 Business restructuring: -8.8 billion yen Change Solutions (Actual) (Actual) (%) -> Impact of excluding the mobile phone retail store business from the co

  24. Slide 24: Device Solutions

    1.Financial Results for 3Q FY2020 Business Segment Information[3Q] Device Solutions (Billions of yen) [Revenue] Business restructuring: -3.0 billion yen Device 3Q FY2019 3Q FY2020 Excluding special items and restructuring, revenue rose 10.2%, Change primarily in electronic components Solutions (Actu

  25. Slide 25: Cash Flows

    1.Financial Results for 3Q FY2020 Cash Flows （Billions of yen） 9 Months 9 Months FY2019 FY2020 Change （Actual） （Actual） Ⅰ Cash flows from operating activities 216.7 199.4 -17.3 Ⅱ Cash flows from investing activities -44.5 -41.2 3.2 Ⅰ+Ⅱ Free Cash Flow 172.2 158.1 -14.0 Ⅲ Cash flows from financing act

  26. Slide 26: Assets, Liabilities and Equity

    1.Financial Results for 3Q FY2020 Assets, Liabilities and Equity (Billions of yen) Year-end End of Change FY2019 3Q FY2020 Total Assets 3,187.4 3,030.5 -156.8 Total Liabilities 1,839.0 1,599.1 -239.8 Total Equity 1,348.4 1,431.3 82.9 Total Equity Attributable to Owners of the Parent 1,240.9 1,340.3

  27. Slide 27: 2. Earnings Forecast for FY2020

    2. Earnings Forecast for FY2020 27 Copyright 2021 FUJITSU LIMITED

  28. Slide 28: Financial Forecast

    2.Earnings Forecast for FY2020 Financial Forecast (Billions of yen) FY2020(Forecast) FY2019 Change vs. Current Change Impact of （Actual） Previous (%) Forecast COVID-19 Forecast Revenue 3,857.7 3,610.0 - -247.7 -6.4 -120.0 Operating Profit 211.4 237.0 25.0 25.5 12.1 -41.0 [Operating Profit Margin] [5

  29. Slide 29: Business Segment Information (Forecast)

    2.Earnings Forecast for FY2020 Business Segment Information (Billions of yen) FY2020(Forecast) FY2019 Current Change vs. Previous Forecast Change （Actual） (%) Forecast Special Excl.Special Impact of Items Items COVID-19 Technology Solutions 3,212.9 3,080.0 - -10.0 -132.9 -4.1 -141.0 Ubiquitous Solut

  30. Slide 30: Business Segment Information: Changes vs Previous Forecast

    2.Earnings Forecast for FY2020 Business Segment Information Excluding Special Items and Restructuring Revenue: No change to consolidated totals ＜By Segment＞ Technology Solutions -10.0 billion yen Factoring in continued COVID-19 impacts in 4Q Device Solutions +10.0 billion yen Factoring increased dem

  31. Slide 31: Breakdown of Technology Solutions

    2.Earnings Forecast Business Segment Information for FY2020 Breakdown of Technology Solutions (Billions of yen) FY2020(Forecast) FY2019 Current Change vs. Previous Forecast Change （Actual） (%) Forecast Special Excl.Special Impact of Items Items COVID-19 Technology Solutions 3,212.9 3,080.0 - -10.0 -

  32. Slide 32: Breakdown of Technology Solutions

    2.Earnings Forecast Business Segment Information for FY2020 Breakdown of Technology Solutions (Billions of yen) FY2019 Excl. Impact of Impact of FY2020 (Actual) COVID-19 COVID-19 (Forecast) Revenue 3,158.3 3,205.3 -152.2 3,053.1 Excl. restructuring OPPL 197.7 243.8 -47.4 196.4 and special items [Ope

  33. Slide 33: Cash Flows: Free Cash Flow

    2.Earnings Forecast for FY2020 Cash Flows Free Cash Flow (Billions of yen) Change vs. FY2018 FY2019 FY2020 Previous (Actual) (Actual) (Forecast) Forecast Free Cash Flow 103.5 233.0 200.0 30.0 • FY 2019 Impact of the sale of businesses (Mie semiconductor plant, others) and the sale of shares held in

  34. Slide 34: Returns to Shareholders

    2.Earnings Forecast for FY2020 Returns to Shareholders Stock Buybacks: Execution status of the stock buyback program established last year Amount of shares purchased February 3, 2020 through February 2, 2021: 50.0 billion yen Status of Stock Buybacks FY 2019 4Q 30.0 billion yen FY 2020 4Q (planned)

  35. Slide 35: FUJITSU shaping tomorrow with you

    CO FUJITSU shaping tomorrow with you

  36. Slide 36: 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

  37. Slide 37: Supplementary

    Supplementary 37 Copyright 2021 FUJITSU LIMITED

  38. Slide 38: Business Segment Information [9 Months]

    (Supplementary) Financial Results for 3Q FY2020 Business Segment Information [9 Months] (Billions of yen) 9 Months 9 Months Special Special Special FY2019 items/ FY2020 items/ Change Excl. items/ Impact of Special items COVID-19 （Actual） restructuring （Actual） restructuring restructuring Technology

  39. Slide 39: Business Segment Information [Quarterly Breakdown of Results]

    (Supplementary) Business Segment Information Financial Results for 3Q FY2020 [Quarterly Breakdown of Results] (Billions of yen) FY2019 (Actual) FY2020 (Actual) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Technology Revenue 677.1 807.1 770.0 958.5 679.1 698.3 753.5 Solutions OPPL 7.5 56.2 40.9 83.1 12.6 29.6 52.3 Solutions

  40. Slide 40: For Growth/For Stability: Composition of Businesses

    (Supplementary) Financial Results Two Business Areas for Value Creation for 3Q FY2020 (Technology Solutions) For Growth/For Stability: Composition of Businesses For Growth • SI Development (New / Modernization / Upgrades) • Cloud Services Related IaaS / SaaS Cloud Integration Applications (Applicati

  41. Slide 41: Two Business Areas for Value Creation (Technology Solutions 9 Months)

    (Supplementary) Two Business Areas for Value Creation Financial Results for 3Q FY2020 (Technology Solutions 9 Months) (Billions of yen) 9 Months FY2019 (Actual) 9 Months FY2020 (Actual) Change For For For For For For Total Total Total Growth Stability Growth Stability Growth Stability Technology Gro

  42. Slide 42: Revenue Breakdown In and Outside Japan 3Q

    (Supplementary) Business Segment Information Financial Results for 3Q FY2020 [ Revenue Breakdown-In and Outside Japan 3Q] (Billions of yen) 3Q FY2019 3Q FY2020 Change (Actual) (Actual) (％) Revenue 770.0 753.5 -16.5 -2.1 Technology Solutions Japan 531.8 530.9 -0.9 -0.2 Outside Japan 238.1 222.5 -15.6

  43. Slide 43: Revenue Breakdown In and Outside Japan 9 Months

    (Supplementary) Business Segment Information Financial Results for 3Q FY2020 [ Revenue Breakdown-In and Outside Japan 9Months] (Billions of yen) 9 Months 9 Months FY2019 FY2020 Change (％) (Actual) (Actual) Revenue 2,254.3 2,130.9 -123.3 -5.5 Technology Solutions Japan 1,577.7 1,516.8 -60.9 -3.9 Outs

  44. Slide 44: Breakdown of International Regions Excluding Japan

    (Supplementary) Breakdown of International Regions Financial Results for 3Q FY2020 Excluding Japan (Billions of yen) Change Change 9 Months 9 Months 3Q FY2019 3Q FY2020 (Actual) (Actual) Special items/ Excl. FY2019 FY2020 Special items/ Excl. Special (Actual) (Actual) Special restructuring items/res

  45. Slide 45: Assumption used for FY2020 Forecasts: Exchange Rates

    (Supplementary) Financial Results for FY2020 Assumption used for FY2020 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation FY2020 Impact of Exchange Rate FY2019 Change vs. Fluctuation (Actual) 9 Months 4Q Previous 4Q (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 109 106 105 -

  46. Slide 46: Assumption used for FY2020 Forecasts: Capex, Depreciation, R&D

    (Supplementary) Earnings Forecast for FY2020 Assumption used for FY2020 Forecasts 2. Capital Expenditures and Depreciation （Property, Plant and Equipment） (Billions of yen) 9 Months Full year Change vs. FY2019 FY2020 FY2019 FY2020 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Technology So

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