Slide 1: 1Q FY2024 Consolidated Financial Results
1Q FY2024 Consolidated Financial Results July 25, 2024 Fujitsu Limited 1 © 2024 Fujitsu Limited
Slide 2: Financial Results for 1Q FY2024
Financial Results for 1Q FY2024 2 © 2024 Fujitsu Limited
Slide 3: FY 2024 1Q Results: Overview
FY 2024 1Q Results: Overview (Billions of yen) Service Solutions ▎ Revenue up 7.8% from the previous year (up 11% in Japan) vs Revenue 501.6 LY +7.8% ▎ In addition to higher revenue, Adjusted vs profitability also improved. The profit Operating Profit 34.9 LY +14.0 margin increased by 2.5％ from the
Slide 4: Business Segment Information
Business Segment Information (Billions of yen) 1Q FY2023 1Q FY2024 Change (％) Revenue 465.4 501.6 36.2 7.8 Service Solutions Adj. Operating Profit 20.9 34.9 14.0 67.1 [%] [4.5%] [7.0%] [2.5%] Hardware Revenue 216.8 228.5 11.6 5.4 Solutions Adj. Operating Profit 2.6 -3.6 -6.3 - Ubiquitous Revenue 59.
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) ▎ Revenue 1Q FY2023 1Q FY2024 Change (%) Very solid growth in DX and modernization deals, especially in Japan (business in Japan grew 11%) Revenue 465.4 501.6 36.2 7.8 Revenue for Fujitsu Uvance grew 37% from the prior [Fujitsu Uvance] [70.
Slide 7: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +36.2 / Adjusted Operating Profit +14.0 +8.1 -8.3 +14.2 7.0% Improvement Investment in profitability expansion, etc. （Gross margin ratio +2%) (Development cost of 1Q FY23 32% → 1Q FY24 34% Fujitsu Uvance,
Slide 8: Orders in Japan
Service Solutions Orders in Japan Enterprise: There was continued growth primarily in DX and modernization Public: There was a pullback in orders compared to the multi-year large-scale deals won in the previous year FY2022 FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Japan 111% 105% 100% 112% 118% 118%
Slide 9: Orders in Regions (International)
Service Solutions Orders in Regions (International) Europe: Pullback from previous year’s large-scale deals Americas: Continued expansion of the Services business, primarily Fujitsu Uvance Asia Pacific: Renewal of multi-year services deals in Oceania with finance-related customers FY2022 FY2023 FY20
Slide 10: Status of Fujitsu Uvance
Service Solutions Status of Fujitsu Uvance Period of the Medium-Term Up 56% Management (Billions of yen) Plan Up 22% FY25 700.0 Up 84% 450.0 Orders Up 50% 72.9 109.2 Vertical increase 367.9 400.0 180.0 Up 37% 96.5 116.3 Revenue 70.4 Vertical 10.3 29.4 increase Vertical +19.1 Horizontal Horizontal 60
Slide 11: Improvement in Profitability and Growth Investments
Service Solutions Improvement in Profitability and Growth Investments Improvement in profitability: +8.1 billion yen Investment expansion: -8.3 billion yen Aggressive Investments for Growth ▎ Trends in gross margin Development of offerings 1Q FY22 1Q FY23 1Q FY24 vs LY Aggregation of modernization
Slide 12: Breakdown by Sub-segment
Service Solutions Breakdown by Sub-segment (Billions of yen) 1Q FY2023 1Q FY2024 Change (％) ▎ Global Solutions Revenue 465.4 501.6 36.2 7.8 Higher revenue, primarily from Fujitsu Uvance Service Adjusted Operating Continued investment in Uvance and standardization in Profit 20.9 34.9 14.0 67.1 Soluti
Slide 13: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) 1Q FY2023 1Q FY2024 Change (%) ◼ System Products • Higher revenue, mainly from foreign exchange Revenue 216.8 228.5 11.6 5.4 movements System Products 185.2 194.8 9.6 5.2 • In addition to the pullback from the previous year’s highly profitable large-scale deals
Slide 14: Device Solutions and Inter-segment Elim./Corporate
◼ Device Solutions (Billions of yen) 1Q FY2023 1Q FY2024 Change (%) Revenue 67.4 71.6 4.2 6.2 ◼ Improvement in factors, including positive foreign Adjusted exchange movements 2.2 7.0 4.7 207.7 Operating Profit [Adj. Operating profit margin] [3.4%] [9.8%] [6.4%] ◼ Inter-segment Elim./ Corporate (Bill
Slide 15: Cash Flows, Assets, Liabilities and Equity
Cash Flows ・Assets, Liabilities and Equity 15 © 2024 Fujitsu Limited
Slide 16: Cash Flows (Consolidated)
Cash Flows (Consolidated) (Billions of yen) 1Q FY2023 1Q FY2024 Change Core Free Cash Flow * 182.8 167.7 -15.0 * Ordinary free cash flow, excluding one-time cash inflows or outflows from such activities as business restructurings, structural reforms, and acquisitions or divestitures.(Details are on
Slide 17: Assets, Liabilities and Equity (Consolidated)
Assets, Liabilities and Equity (Consolidated) (Billions of yen) Year-end End of Change FY2023 1Q FY2024 Total Assets 3,514.8 3,462.2 -52.5 Total Liabilities 1,595.9 1,515.0 -80.9 Total Equity 1,918.8 1,947.2 28.4 Total Equity Attributable to Owners of the Parent 1,752.3 1,777.6 25.2 Reference: Finan
Slide 18: Earnings Forecast for FY2024
Earnings Forecast for FY2024 18 © 2024 Fujitsu Limited
Slide 19: Financial Forecast
Financial Forecast (Billions of yen) FY2024(Forecast) FY2023 Change vs. Current Change (%) (Actual) Previous Forecast Forecast Revenue 3,756.0 3,760.0 - 3.9 0.1 Adjusted Operating Profit 283.6 330.0 - 46.3 16.3 [Adjusted Operating Profit Margin] [7.6%] [8.8%] [-%] [1.2%] Adjusted Profit for the year
Slide 20: Business Segment Information
Business Segment Information (Billions of yen) FY2024(Forecast) FY2023 Change vs. Current Change (％) （Actual） Previous Forecast Forecast Revenue 2,137.5 2,230.0 - 92.4 4.3 Service Adj. Operating Profit 237.2 280.0 - 42.8 18.0 Solutions [%] [11.1%] [12.6%] [-%] [1.5%] Revenue 1,108.0 1,030.0 - -78.0
Slide 21: Cash Flows
Cash Flows (Billions of yen) FY2024(Forecast) FY2023 Change vs. Current Change (Actual) Previous Forecast Forecast Core Free Cash Flow 197.2 220.0 - 22.7 Free Cash Flow 151.9 220.0 - 68.0 21 © 2024 Fujitsu Limited
Slide 22: Fujitsu IR Day 2024
Announcement of Event Fujitsu IR Day 2024 Date and Time: September 10, 2024 (Tue) 10:00am - 12:20pm (JST) Format: Hybrid Event Scheduled Speakers： Mr. Takeshi Isobe Representative Director, Corporate Vice President, CFO Mr. Vivek Mahajan Corporate Executive Officer, Corporate Vice President, CTO, CP
Slide 23: Thank you
Thank you © 2024 Fujitsu Limited
Slide 24: 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 25: Supplementary
Supplementary 25 © 2024 Fujitsu Limited
Slide 26: Consolidated PL (1Q)
Financial Results Consolidated PL (1Q) Adjusted Consolidated Results (Billions of yen) 1Q FY2023 1Q FY2024 Change (％) Revenue 799.6 830.0 30.3 3.8 Adjusted Operating Profit 2.6 23.6 21.0 806.6 [Adjusted Operating Profit Margin] [0.3%] [2.8%] [2.5%] Financial income (expenses), tax expense, etc. 4.8
Slide 27: Consolidated PL by quarter
Financial Results Consolidated PL by quarter Adjusted Consolidated Results (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q Revenue 799.6 912.2 930.8 1,113.3 3,756.0 830.0 Adjusted Operating Profit 2.6 48.1 68.0 164.8 283.6 23.6 [Adjusted Operating Profit Margin] [0.3%] [5.3%] [7.3%] [14.8%] [7.
Slide 28: Adjusted items by quarter
Financial Results Adjusted items by quarter (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q Adjusted Operating Profit 2.6 48.1 68.0 164.8 283.6 23.6 Adjusted items from GAAP Operating Profit -4.4 -2.3 -65.4 -51.1 -123.4 -2.2 One-time Profit/Loss from business transfers - - -32.8 -2.2 -35.0 - Bu
Slide 29: Business Segment Information by quarter
Financial Results Business Segment Information by quarter (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q Service Revenue 465.4 518.7 537.8 615.5 2,137.5 501.6 Solutions Adj. Operating Profit 20.9 42.5 52.8 120.8 237.2 34.9 Global Revenue 104.2 113.4 113.7 148.8 480.3 129.0 Solutions Adj. Opera
Slide 30: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) FY2023 FY2024 Change FY2024 1Q 2Q 3Q 4Q Total 1Q 1Q (Forecast) Vertical 13.2 24.0 30.6 56.4 124.4 33.4 20.2 200.0 Horizontal 59.7 74.1 93.8 97.2 324.9 75.7 16.0 310.0 Orders (%) 150% 114% Total 72.9 98.1 124.5 153.7 449.3 109.2 36.3 510.0 [Japan*] [
Slide 31: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) FY2023 FY2024 Change 1Q 1Q Revenue 141.0 142.2 1.2 Regions (International) Adj. Operating Profit -3.6 -0.5 3.0 Revenue 96.8 92.8 -3.9 Europe Adj. Operating Profit -4.0 -0.8 3.2 Revenue 12.7 13.9 1.1 Americas Adj. Operating Prof
Slide 32: Adjusted items from GAAP Free Cash Flow by quarter
Financial Results Adjusted items from GAAP Free Cash Flow by quarter (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q Core Free Cash Flow 182.8 -91.7 -16.0 122.1 197.2 167.7 Adjusted items from GAAP Free Cash Flow -57.2 0.7 50.9 -39.7 -45.2 -37.2 Business transfers -18.8 11.9 56.5 -34.1 15.4 -19
Slide 33: Financial Forecast - Adjusted Consolidated Results and Adjusted items
Earnings Forecast Financial Forecast -Adjusted Consolidated Results and Adjusted items Adjusted Consolidated Results (Billions of yen) FY2024(Forecast) FY2023 Current Change vs. Previous Change （Actual） Forecast Forecast Revenue 3,756.0 3,760.0 - 3.9 Adjusted Operating Profit 283.6 330.0 - 46.3 [Adj
Slide 34: Business Segment Information (Service Solutions)
Earnings Forecast Business Segment Information (Service Solutions) (Billions of yen) FY2024(Forecast) FY2023 Change vs. Current Change (％) （Actual） Previous Forecast Forecast Revenue 2,137.5 2,230.0 - 92.4 4.3 Service Adj. Operating Profit 237.2 280.0 - 42.8 18.0 Solutions [%] [11.1%] [12.6%] [-%] [
Slide 35: Trend of Adjusted Operating Profit (Service Solutions)
Earnings Forecast Trend of Adjusted Operating Profit (Service Solutions) (Billions of yen) 1Q 2Q 3Q 4Q Total Adjusted Operating Profit 9.0 10.0 35.4 108.5 162.9 FY2022 （調整後営業利益率） [Adj. Operating profit margin] [2.0%] [2.2%] [7.4%] [18.2%] [8.2%] Ratio of Annual Total 5.5% 6.1% 21.7% 66.6% 100.0% Adj
Slide 36: Assumption used for FY2024 Forecasts: Exchange Rates
Earnings Forecast Assumption used for FY2024 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation FY2024 Impact of Exchange Rate FY2023 Change vs. Fluctuation (Actual) 1Q 2Q/3Q/4Q Previous 2Q/3Q/4Q (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 145 156 140 - -0.6 Billion yen Eur
Slide 37: Assumption used for FY2024 Forecasts: Capex, Depreciation, R&D
Earnings Forecast Assumption used for FY2024 Forecasts 2. Capital Expenditures and Depreciation （Property, Plant and Equipment） (Billions of yen) 1Q Full year Change vs. FY2023 FY2024 FY2023 FY2024 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Service Solutions 4.8 4.4 31.5 35.0 - Hardware