Slide 1: 2Q FY2020 Consolidated Financial Results
2Q FY2020 Consolidated Financial Results October 27, 2020 Fujitsu Limited 1 Copyright 2020 FUJITSU LIMITED
Slide 2: Contents
Contents １．Financial Results for 1H FY2020 ２．Earnings Forecast for FY2020 2 Copyright 2020 FUJITSU LIMITED
Slide 3: 1. Financial Results for 1H FY2020
1. Financial Results for 1H FY2020 3 Copyright 2020 FUJITSU LIMITED
Slide 4: Financial Results [2Q]
1.Financial Results for 1H FY2020 Financial Results [2Q] (Billions of yen) 2Q FY2019 2Q FY2020 Impact of Excl. Change Impact of （Actual） （Actual） COVID-19 COVID-19 Revenue 956.8 820.7 -136.1 -49.3 -86.8 Excl. restructuring OPPL 67.2 45.8 -21.3 -16.0 -5.3 and special items [Operating Profit Margin] [
Slide 5: Consolidated PL [2Q]
1.Financial Results for 1H FY2020 Consolidated PL [2Q] (Billions of yen) FY2019 （Actual） FY2020 （Actual） Impact of 1Q 2Q 1Q 2Q Change (%) COVID-19 Revenue 838.7 990.0 802.7 829.0 -160.9 -16.3 -49.3 Operating Profit 3.3 67.6 22.2 39.9 -27.7 -40.9 -16.0 [Operating Profit Margin] [0.4%] [6.8%] [2.8%] [
Slide 6: Consolidated PL [2Q] (QoQ)
1.Financial Results for 1H FY2020 Consolidated PL [2Q] (QoQ) ■Revenue • Excl. special items and restructuring Impact of COVID-19 -49.3 billion yen - Negative impact, primarily in Technology Solutions Excluding the impact of COVID-19 -86.8 billion yen - Big decline in Ubiquitous Solutions from the un
Slide 7: Financial Results [1H]
1.Financial Results for 1H FY2020 Financial Results [1H] (Billions of yen) 1H FY2019 1H FY2020 Impact of Excl. Change Impact of （Actual） （Actual） COVID-19 COVID-19 Revenue 1,758.6 1,612.7 -145.9 -85.1 -60.7 Excl. restructuring OPPL 78.6 69.2 -9.4 -28.1 18.7 and special items [Operating Profit Margin
Slide 8: Consolidated PL [1H]
1.Financial Results for 1H FY2020 Consolidated PL [1H] (Billions of yen) 1H FY2019 1H FY2020 Impact of Change （Actual） （Actual） (%) COVID-19 Revenue 1,828.7 1,631.8 -196.9 -10.8 -85.1 Operating Profit 71.0 62.2 -8.8 -12.4 -28.1 [Operating Profit Margin] [3.9%] [3.8%] [-0.1%] Financial income (expens
Slide 9: Consolidated PL [1H] (HoH)
1.Financial Results for 1H FY2020 Consolidated PL [1H] (HoH) ■Revenue • Excl. special items and restructuring Impact of COVID-19 -85.1 billion yen - Negative impact, primarily in Technology Solutions Excluding the impact of COVID-19 -60.7 billion yen - Decline of around 100 billion yen in Ubiquitous
Slide 10: Factors Behind Change in Operating Profit
1.Financial Results for 1H FY2020 Factors Behind Change in Operating Profit (Billions of yen) Improvement Excl. Impact of COVID-19 Impact of COVID-19 Rate of change ･Sales -60.7 ･Decrease in sales -85.1 [-5%] ･Operating Profit +18.7 ･Operating Profit -28.1 ･Technology Solutions +14.0 ･Ubiquitous -8.
Slide 11: Revenue by Segments
1.Financial Results for 1H FY2020 Revenue by Segments Breakdown of change vs LY Positive impact excl COVID-19 : System Platforms (Super computer "Fugaku" and 5G base station) Negative impact excl COVID-19 : Ubiquitous Solutions (Recoil from the previous year's special demand) Impact of COVID-19 : Re
Slide 12: Impact of COVID-19 (Revenue)
1.Financial Results for 1H FY2020 Impact of COVID-19 (Revenue) Impact of COVID-19 Revenue: Decline of 85.1 billion yen … Negative Factors: -138.1 billion yen, Positive Factors: +52.9 billion yen • Impact per Market Private Enterprise: Significant impact due to postponements of project implementation
Slide 13: Profitability Improvement
1.Financial Results for 1H FY2020 Profitability Improvement Gross Profit Margin Improved by 0.8% Solutions/Services • Ongoing improvements in costs for maintenance and operations services • Improvement in project profitability due to strengthened assurance process, including upstream processes Reduc
Slide 14: Progress in Business Model Transformation Outside Japan
1.Financial Results Progress in Business Model Transformation Outside Japan for 1H FY2020 Business Model Transformation Outside Japan → According to Plan <Progress Status> • Reorganization of product business in Europe … Manufacturing at the factory location in Augsburg has ceased, the transfer to E
Slide 15: Overall orders in Japan (Fujitsu Limited only)
1.Financial Results for 1H FY2020 Overall orders in Japan (Fujitsu Limited only) FY2019(Actual) FY2020(Actual) Industries Excl. Orders 1Q 2Q 1H 2H 1Q 2Q 1H For PC 1H Private Enterprise [Manufacturing & Distribution] 108% 113% 111% 103% 93% 85% 89% 91% Finance＆Retail 106% 131% 118% 94% 89% 84% 86% 90
Slide 16: Business Segment Information [1H]
1.Financial Results for 1H FY2020 Business Segment Information[1H] (Billions of yen) 1H FY2019 Special 1H FY2020 Special Special items/ items/ Change Excl. items/ Impact of （Actual） （Actual） Special items COVID-19 restructuring restructuring restructuring Technology Solutions 1,484.2 29.0 1,377.4 16
Slide 17: Business Segment Information [1H]: Technology Solutions
1.Financial Results for 1H FY2020 Business Segment Information[1H] Technology Solutions [Revenue] (Billions of yen) Revenue fell significantly due to the impact of COVID-19 and Technology restructuring. 1H FY2019 1H FY2020 Change Impact of COVID-19: -100.2 billion yen Solutions (Actual) (Actual) (%)
Slide 18: Technology Solutions (Solutions/Services)
1.Financial Results for 1H FY2020 Business Segment Information[1H] 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, due to Solutions/ 1H FY2019 1H FY2020 a major healthc
Slide 19: Technology Solutions (System Platforms)
1.Financial Results for 1H FY2020 Business Segment Information[1H] Technology Solutions (System Platforms) (Billions of yen) [Revenue] (System Products) System 1H FY2019 1H FY2020 Despite higher revenue from the Supercomputer Fugaku, Change Platforms (Actual) (Actual) (%) revenue fell significantly
Slide 20: Technology Solutions (International Regions Excluding Japan)
1.Financial Results for 1H FY2020 Business Segment Information[1H] Technology Solutions（International Regions Excluding Japan） (Billions of yen) [Revenue] International 1H FY2019 1H FY2020 Excluding special items and restructuring, COVID-19 had a Regions Change significant impact on revenue. Excludi
Slide 21: Technology Solutions (Common)
1.Financial Results for 1H FY2020 Business Segment Information[1H] Technology Solutions（Common） (Billions of yen) 1H FY2019 1H FY2020 Common Change (Actual) (Actual) Operating profit -10.4 -18.3 -7.8 • Impact of COVID-19: -1.6 billion yen • In addition to investments in stronger networks and enhance
Slide 22: Two Business Areas for Value Creation (Technology Solutions)
1.Financial Results Two Business Areas for Value Creation for 1H 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
Slide 23: Ubiquitous Solutions
1.Financial Results for 1H FY2020 Business Segment Information[1H] Ubiquitous Solutions (Billions of yen) [Revenue] Ubiquitous 1H FY2019 1H FY2020 Revenue fell significantly compared to the previous year, as Change Solutions (Actual) (Actual) (%) last year saw significant one-time demand for replace
Slide 24: Device Solutions
1.Financial Results for 1H FY2020 Business Segment Information[1H] Device Solutions [Revenue] (Billions of yen) Revenue rose by 4.6%, excluding special items and restructuring, despite the impact of COVID-19. Device 1H FY2019 1H FY2020 Change Impact of business restructuring: Revenue reduced by 36.1
Slide 25: Cash Flows
1.Financial Results for 1H FY2020 Cash Flows （Billions of yen） 1H FY2019 1Ｈ FY2020 Change （Actual） （Actual） Ⅰ Cash flows from operating activities 115.2 156.9 41.7 Ⅱ Cash flows from investing activities -47.8 -44.1 3.6 Ⅰ+Ⅱ Free Cash Flow 67.3 112.7 45.4 Ⅲ Cash flows from financing activities -58.7 -
Slide 26: Assets, Liabilities and Equity
1.Financial Results for 1H FY2020 Assets, Liabilities and Equity (Billions of yen) Year-end End of Change FY2019 2Q FY2020 Total Assets 3,187.4 2,989.4 -197.9 Total Liabilities 1,839.0 1,633.7 -205.2 Total Equity 1,348.4 1,355.7 7.2 Total Equity Attributable to Owners of the Parent 1,240.9 1,267.6 2
Slide 27: Return to shareholders
1.Financial Results for 1H FY2020 Return to shareholders Dividend (Per Share) (Yen) FY2019 FY2020 Change End of First Half 80 100 20 End of Fiscal Year 100 [100] - Annual 180 [200] 20 Figures in brackets [ ] are forecasts. 27 Copyright 2020 FUJITSU LIMITED
Slide 28: 2. Earnings Forecast for FY2020
2. Earnings Forecast for FY2020 28 Copyright 2020 FUJITSU LIMITED
Slide 29: Financial Forecast
2.Earnings Forecast for FY2020 Financial Forecast (Billions of yen) FY2020(Forecast) FY2019 Current Change vs. Change Impact of （Actual） Previous (%) Forcast COVID-19 Forecast Revenue 3,857.7 3,610.0 - -247.7 -6.4 -110.0 Operating Profit 211.4 212.0 - 0.5 0.2 -38.0 [Operating Profit Margin] [5.5%] [
Slide 30: Business Segment Information (Forecast)
2.Earnings Forecast for FY2020 Business Segment Information (Billions of yen) FY2020(Forecast) FY2019 Current Change vs. Change （Actual） Previous (%) Impact of Forcast COVID-19 Forecast Technology Solutions 3,212.9 3,090.0 - -122.9 -3.8 -131.0 Ubiquitous Solutions 455.2 319.0 - -136.2 -29.9 30.0 Rev
Slide 31: Breakdown of Technology Solutions (Forecast)
2.Earnings Forecast Business Segment Information for FY2020 Breakdown of Technology Solutions (Billions of yen) FY2020(Forecast) FY2019 Current Change vs. Change （Actual） Previous (%) Impact of Forcast COVID-19 Forecast Technology Solutions 3,212.9 3,090.0 - -122.9 -3.8 -131.0 Revenue Solutions/Serv
Slide 32: Cash Flows (Forecast)
2.Earnings Forecast for FY2020 Cash Flows Free Cash Flow (Billions of yen) Change vs. FY2019 FY2020 Previous (Actual) (Forecast) Forecast Free Cash Flow 233.0 170.0 - 32 Copyright 2020 FUJITSU LIMITED
Slide 33: Copyright 2020 FUJITSU LIMITED
33 Copyright 2020 FUJITSU LIMITED
Slide 34: 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 35: Supplementary
Supplementary 35 Copyright 2020 FUJITSU LIMITED
Slide 36: Business Segment Information [2Q]
(Supplementary) Financial Results for 1H FY2020 Business Segment Information[2Q] (Billions of yen) 2Q FY2019 Special 2Q FY2020 Special Special items/ items/ Change Excl. items/ Impact of （Actual） （Actual） Special items COVID-19 restructuring restructuring restructuring Technology Solutions 807.1 13.
Slide 37: Business Segment Information [Quarterly Breakdown of Results]
(Supplementary) Business Segment Information Financial Results for 1H FY2020 [Quarterly Breakdown of Results] (Billions of yen) FY2019 (Actual) FY2020 (Actual) 1Q 2Q 3Q 4Q 1Q 2Q Technology Revenue 677.1 807.1 770.0 958.5 679.1 698.3 Solutions OPPL 7.5 56.2 40.9 83.1 12.6 29.6 Solutions/ Revenue 388.
Slide 38: Two Business Areas: Composition of Businesses
(Supplementary) Financial Results Two Business Areas for Value Creation for 1H 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
Slide 39: Two Business Areas for Value Creation (Technology Solutions)
(Supplementary) Two Business Areas for Value Creation Financial Results for 1H FY2020 (Technology Solutions) (Billions of yen) FY2019 (Actual) 1H FY2020 (Actual) Change For For For For For For Total Total Total Growth Stability Growth Stability Growth Stability Technology Growth Rate 105% 88% 93% So
Slide 40: Revenue Breakdown In and Outside Japan 2Q
(Supplementary) Business Segment Information Financial Results for 1H FY2020 [ Revenue Breakdown-In and Outside Japan 2Q] (Billions of yen) 2Q FY2019 2Q FY2020 Change (Actual) (Actual) (％) Revenue 807.1 698.3 -108.7 -13.5 Technology Solutions Japan 589.0 503.1 -85.8 -14.6 Outside Japan 218.0 195.1 -
Slide 41: Revenue Breakdown In and Outside Japan 1H
(Supplementary) Business Segment Information Financial Results for 1H FY2020 [ Revenue Breakdown-In and Outside Japan 1H] (Billions of yen) 1H FY2019 1H FY2020 Change (Actual) (Actual) (％) Revenue 1,484.2 1,377.4 -106.7 -7.2 Technology Solutions Japan 1,045.9 985.9 -59.9 -5.7 Outside Japan 438.3 391
Slide 42: Breakdown of International Regions Excluding Japan
(Supplementary) Breakdown of International Regions Financial Results for 1H FY2020 Excluding Japan (Billions of yen) 2Q FY2019 2Q FY2020 1H FY2019 1H FY2020 Change Change (Actual) (Actual) (Actual) (Actual) International Regions Revenue 182.4 163.8 -18.6 368.7 334.9 -33.8 Operating Excluding Japan P
Slide 43: Assumption used for FY2020 Forecasts: Exchange Rates
(Supplementary) Financial Results for 1H FY2020 Assumption used for FY2020 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation FY2020 Impact of Exchange Rate FY2019 Change vs. Fluctuation (Actual) 1H 2H Previous 2H (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 109 107 105 - -0
Slide 44: 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) 1H Full year Change vs. FY2019 FY2020 FY2019 FY2020 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Technology Solution