Slide 1: 2Q FY2023 Consolidated Financial Results
2Q FY2023 Consolidated Financial Results October 26, 2023 Fujitsu Limited 1 © 2023 Fujitsu Limited
Slide 2: Financial Results for 1H FY2023
Financial Results for 1H FY2023 2 © 2023 Fujitsu Limited
Slide 3: FY 2023 1H Results: Overview
FY 2023 1H Results: Overview (Billions of yen) Service Solutions Service Solutions ▎ Revenue grew by 13.6%, primarily from vs business in Japan Revenue 984.1 LY +13.6% 》 1Q ＋10.2% 2Q ＋16.8% Adjusted vs 》 Fujitsu Uvance grew by 1.6 times Operating Profit 63.4 LY +44.4 》 Strong growth in orders leadin
Slide 4: Business Segment Information
Business Segment Information (Billions of yen) FY2023 Change 1Q 2Q 1H 1Q 2Q 1H Revenue 465.4 518.7 984.1 19.7 59.2 79.0 Excl. Impact of Service restructuring 465.4 518.7 984.1 43.0 74.6 117.6 Solutions Impact of restructuring - - - -23.2 -15.4 -38.6 Adj. Operating Profit 20.9 42.5 63.4 11.9 32.5 44.
Slide 5: Business Segment Information
Business Segment Information 5 © 2023 Fujitsu Limited
Slide 6: Service Solutions
Service Solutions ◼ Service Solutions (Billions of yen) ▎ Revenue 1H FY2022 1H FY2023 Change (%) Very solid growth in DX and modernization deals in Revenue 905.1 984.1 79.0 8.7 Japan Excl. Impact of 866.4 984.1 117.6 13.6 Revenue for Fujitsu Uvance grew 63% from the prior restructuring year [Fuj
Slide 7: Breakdown by Quarter
Service Solutions Breakdown by Quarter (Billions of yen) 6.4% 117% Revenue vs LY (%) 110% (Excl. Impact of 8.2% restructuring) Adjusted Operating 63.4 Profit Margin 4.5% 42.5 2.1% 2.0% 2.2% Adjusted Operating 20.9 19.0 Profit 9.0 10.0 1Q 1Q 2Q 2Q 1H 1H FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 7 © 2
Slide 8: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +117.6 / Adjusted Operating Profit +44.4 19.3 -12.3 6.4% 37.4 Investment expansion Improvement (Development cost of in profitability Fujitsu Uvance, etc.) （Gross margin ratio +1.3%) 63.4 2.1% Increase in p
Slide 9: Orders in Japan
Service Solutions Orders in Japan Significant growth of 18%, primarily an expansion of DX and modernization deals FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 1H Japan 111% 105% 100% 112% 118% 118% 118% Private Enterprise Business [Manufacturing & Distribution & Retail] 108% 105% 101% 109% 107% 115% 111% Finance
Slide 10: Orders in Regions (International)
Service Solutions Orders in Regions (International) Declines in the Europe, primarily the result of non-recuring large-scale public sector deals in the previous year. Solid growth in the Americas region, primarily from Business Application deals FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 1H Europe 101% 170% 85
Slide 11: Fujitsu Uvance
Service Solutions Fujitsu Uvance Began releasing Vertical offerings, and revenue has exceeded our forecast 700.0 (Billions of yen) First Half Forecast Year Total (FY22→23) 300.0 (FY22→23→25) Vertical 400.0 Up 63% Up 50% 300.0 Revenue 153.7 200.0 100.0 increase 94.0 Vertical 32.8 YTD 15.0 Horizontal
Slide 12: Improvement in Profitability and Growth Investments
Service Solutions Improvement in Profitability and Growth Investments Improvement in profitability +19.3 billion yen Growth investments -12.3 billion yen Trends in gross margin Development expenses for FY2022 FY2023 vs LY offerings 1H 1H 1H 31.2% 32.5% 1.3% Development of highly-skilled human resour
Slide 13: Breakdown by sub-segment
Service Solutions Breakdown by sub-segment (Billions of yen) 1H FY2022 1H FY2023 Change (％) ▎ Global Solutions Higher revenue, primarily from Fujitsu Uvance Revenue 905.1 984.1 79.0 8.7 Excl. Impact of restructuring 866.4 984.1 117.6 13.6 Higher revenue and profitability, with a large decline in Ser
Slide 14: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) ◼ System Products 1H FY2022 1H FY2023 Change (%) • Higher revenue from the solution of the chip shortage and Revenue 496.0 477.5 -18.4 -3.7 higher demand for servers and storage systems System Products 383.5 404.5 20.9 5.5 ◼ Network Products Network Products 11
Slide 15: Device Solutions and Inter-segment Elim./Corporate
◼ Device Solutions (Billions of yen) ◼ Revenue 1H FY2022 1H FY2023 Change (%) Lower revenue on continued weak demand for semiconductor packages Revenue 207.6 142.6 -64.9 -31.3 Adjusted Operating ◼ Adjusted Operating Profit 51.2 9.3 -41.8 -81.7 Profit [Adj. Operating profit Significant drop in profit
Slide 16: Cash Flows
Cash Flows （Billions of yen） 1H FY2022 1H FY2023 Change Core Free Cash Flow * 63.6 91.1 27.4 * 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 page 32) Ⅰ Cash fl
Slide 17: Assets, Liabilities and Equity
Assets, Liabilities and Equity (Billions of yen) Year-end End of Change FY2022 2Q FY2023 Total Assets 3,265.5 3,262.4 -3.1 Total Liabilities 1,528.7 1,437.9 -90.7 Total Equity 1,736.8 1,824.4 87.6 Total Equity Attributable to Owners of the Parent 1,586.8 1,665.7 78.9 Reference: Financial Indices Int
Slide 18: Earnings Forecast for FY2023
Earnings Forecast for FY2023 18 © 2023 Fujitsu Limited
Slide 19: Financial Forecast
Financial Forecast ▎ Factoring in a delayed recovery in Device Solutions (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change (%) （Actual） Previous Forecast Forecast Revenue 3,713.7 3,810.0 -50.0 96.2 2.6 Excl. Impact of restructuring 3,675.0 3,810.0 -50.0 134.9 3.7 Impact of restruct
Slide 20: 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 21: Business Segment Information 2H
Business Segment Information 2H (Billions of yen) FY2023 Change 1H 2H Total 1H 2H Total (Actual) (Forecast) (Forecast) Revenue 984.1 1,185.8 2,170.0 79.0 106.7 185.8 Excl. Impact of Service restructuring 984.1 1,185.8 2,170.0 117.6 106.7 224.4 Solutions Impact of restructuring - - - -38.6 - -38.6 Ad
Slide 22: Cash Flows
Cash Flows ▎ Reflects the revised operating profit for Device Solutions (Billions of yen) Change vs. FY2022 FY2023 Previous (Actual) (Forecast) Forecast Core Free Cash Flow 157.1 215.0 -10.0 Free Cash Flow 177.5 160.0 -10.0 22 © 2023 Fujitsu Limited
Slide 23: Thank you
Thank you © 2023 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 © 2023 Fujitsu Limited
Slide 26: Consolidated PL(1H)
Financial Results Consolidated PL(1H) (Billions of yen) FY2023 Change 1Q 2Q 1H 1Q 2Q 1H Revenue 799.6 912.2 1,711.8 -19.2 25.8 6.5 Adjusted Operating Profit 2.6 48.1 50.7 -25.4 1.3 -24.0 [Adjusted Operating Profit Margin] [0.3%] [5.3%] [3.0%] [-3.1%] [-%] [-1.4%] Adjusted items from GAAP Operating P
Slide 27: Consolidated PL by quarter
Financial Results Consolidated PL by quarter (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q Revenue 818.8 886.4 931.4 1,077.0 3,713.7 799.6 912.2 Adjusted Operating Profit 28.0 46.7 76.9 169.0 320.8 2.6 48.1 [Adjusted Operating Profit Margin] [3.4%] [5.3%] [8.3%] [15.7%] [8.6%] [0.3%] [5.3%
Slide 28: Business Segment Information by quarter
Financial Results Business Segment Information by quarter (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q Service Revenue 445.6 459.5 481.4 597.6 1,984.2 465.4 518.7 Solutions Adj. Operating Profit 9.0 10.0 35.4 108.5 162.9 20.9 42.5 Global Revenue 93.8 90.3 95.6 127.4 407.2 104.2 113.4 Solu
Slide 29: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) FY2023 Change FY2022 FY2023 1Q 2Q 1H 1Q 2Q 1H (Actual) (Forecast) Vertical 13.2 24.0 37.2 7.1 18.4 25.5 30.0 110.0 Horizontal 59.7 74.1 133.7 11.4 33.6 44.9 220.0 250.0 Orders (%) 134% 213% 170% 144% Total 72.9 98.1 171.0 18.5 52.0 70.4 250.0 360.0
Slide 30: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q Revenue 130.0 133.5 150.9 167.1 581.7 141.0 147.4 Regions (International) Adj. Operating Profit -1.8 -1.4 -2.0 15.6 10.3 -3.6 -2.5 Revenue 84.9 89.3 99.0 123.1 396.4 96.8 102.1 Europe Adj.
Slide 31: 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 Operating Profit 25.6 75.3 72.3 162.3 335.6 -1.6 46.4 Adjusted items from GAAP Operating Profit -2.4 28.5 -4.6 -6.7 14.7 -4.2 -1.7 One-time Profit/Loss from business transfers - 32.2 0
Slide 32: 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 Free Cash Flow 66.1 -18.8 2.3 127.8 177.5 125.6 -91.0 Adjusted items from GAAP Free Cash Flow -61.0 44.6 30.1 6.5 20.4 -57.2 0.7 Business transfers 1.4 56.6 32.5 6.5 97.0 -18.8 11.9 M&A
Slide 33: Financial Forecast(PL)
Earnings Forecast Financial Forecast(PL) (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change (%) （Actual） Previous Forecast Forecast Revenue 3,713.7 3,810.0 -50.0 96.2 2.6 Excl. Impact of restructuring 3,675.0 3,810.0 -50.0 134.9 3.7 Impact of restructuring 38.6 - - -38.6 - Adjusted
Slide 34: 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 35: 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 1H Change vs. Fluctuation (Actual) 2H Previous 2H (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 135 141 130 - -0.4 Billion yen Euro / Yen 141
Slide 36: 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) 1H Full year Change vs. FY2022 FY2023 FY2022 FY2023 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Service Solutions 12.4 13.5 27.8 23.0 - Hardwa
Slide 37: Notice of Information Disclosure
Supplementary Notice of Information Disclosure Integrated Report 2023 The Fujitsu Integrated Report introduces the Fujitsu Group’s initiatives for business activities and value creation comprehensively. Sustainability Data Book 2023 Fujitsu Group Sustainability Data Book, responding international in