Slide 1: FY2023 Consolidated Financial Results
FY2023 Consolidated Financial Results April 25, 2024 Fujitsu Limited 1 © 2024 Fujitsu Limited
Slide 2: Financial Results for FY2023
Financial Results for FY2023 2 © 2024 Fujitsu Limited
Slide 3: FY 2023 Results: Overview
FY 2023 Results: Overview (Billions of yen) Service Solutions : ▎ Revenue up 9.9% from the previous Increase in revenue and increase in profits year vs Revenue 2,137.5 LY +9.9% (up 12% in Japan) Adjusted vs ▎ In addition to higher revenue, Operating Profit 237.2 LY +74.2 profitability also improved.
Slide 4: Business Segment Information
Business Segment Information (Billions of yen) FY2022 FY2023 Change (％) Revenue 1,984.2 2,137.5 153.3 7.7 Excl. Impact of restructuring 1,945.5 2,137.5 192.0 9.9 Service Solutions Impact of restructuring 38.6 - -38.6 - Adj. Operating Profit 162.9 237.2 74.2 45.5 [%] [8.2%] [11.1%] [2.9%] Hardware Re
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 FY2022 FY2023 Change (%) Very solid growth in DX and modernization deals in Revenue 1,984.2 2,137.5 153.3 7.7 Japan(business in Japan grew 12%) Excl. Impact of 1,945.5 2,137.5 192.0 9.9 Revenue for Fujitsu Uvance grew 84% from the
Slide 7: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +192.0 / Adjusted Operating Profit +74.2 +35.3 -21.4 11.1% +60.2 Improvement Investment in profitability expansion, etc. 8.2% （Gross margin ratio +2%) (Development cost of FY22 33% → FY23 35% Fujitsu Uvanc
Slide 8: 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 4Q Total Japan 111% 105% 100% 112% 118% 118% 115% 116% 116% Private Enterprise Business [Manufacturing & Distribution & Retail] 108% 105% 101% 109% 107
Slide 9: Orders in Regions (International)
Service Solutions Orders in Regions (International) Europe : Pull-back from previous year’s large-scale deals and the impact of the carve-out of the German private cloud business Americas : Strong expansion of the Services business, primarily Fujitsu Uvance Asia Pacific : Reduction from the pull-bac
Slide 10: Status of Fujitsu Uvance
Service Solutions Status of Fujitsu Uvance Full-scale release of Vertical offerings with revenue up 84% from the prior year (exceeding forecasts) FY 23 revenue: 367.9 billion yen (up 84% from the prior year) FY 23 orders: 449.3 billion yen (up 80% from the prior year) 700.0 Period of the (Billions o
Slide 11: Improvement in Profitability and Growth Investments
Service Solutions Improvement in Profitability and Growth Investments Improvement in profitability +35.3 billion yen Investment expansion -21.4 billion yen Trends in gross margin Development expenses for offerings FY2021 FY2022 FY2023 vs LY 32% 33% 35% 2% Development of highly-skilled human resource
Slide 12: Breakdown by Sub-segment
Service Solutions Breakdown by Sub-segment (Billions of yen) FY2022 FY2023 Change (％) ▎ Global Solutions Revenue 1,984.2 2,137.5 153.3 7.7 Higher revenue, primarily from Fujitsu Uvance Excl. Impact of restructuring 1,945.5 2,137.5 192.0 9.9 Higher revenue and profitability, with a significant Servic
Slide 13: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) FY2022 FY2023 Change (%) ◼ System Products • Higher revenue, mainly from foreign exchange movements Revenue 1,132.3 1,108.0 -24.3 -2.2 ◼ Network Products System Products 862.6 925.0 62.3 7.2 • Pull-back from prior year’s strong demand for both mobile Network Pr
Slide 14: Device Solutions and Inter-segment Elim./Corporate
◼ Device Solutions (Billions of yen) ◼ Revenue FY2022 FY2023 Change (%) Lower revenue on continued weak demand for semiconductor packages Revenue 382.6 286.3 -96.3 -25.2 Adjusted 77.4 18.3 -59.0 -76.3 ◼ Adjusted Operating Profit Operating Profit [Adj. Operating profit [20.2%] [6.4%] [-13.8%] Signifi
Slide 15: Investments for business growth
Investments for business growth (Billions of yen) FY2023 Change Investments for business growth 202.1 81.4 [OPEX] [116.2] [27.1] [CAPEX] [85.9] [54.3] (Billions of yen) Main investments and their contents ▎ Strengthening Fujitsu Uvance and consulting business Approx 65.0 : Expansion of Fujitsu Uvanc
Slide 16: Transformation Initiatives
Transformation Initiatives 16 © 2024 Fujitsu Limited
Slide 17: Service Solutions – Regions (International)
Transformation Initiatives Service Solutions – Regions (International) Accelerating Reforms to Business Portfolio to Improve Profitability [Press release dated November 15, 2023] ▎Carve out of private cloud business in Germany ・One-time loss of over 30.0 billion yen (recorded as an adjusted item fro
Slide 18: Hardware Solutions
Transformation Initiatives Hardware Solutions [Press release dated December 26, 2023] ▎Established Fsas Technologies Inc. (on April 1, 2024) to integrate core functions of development, manufacturing, sales, and maintenance of servers and storages business*in Japan and to improve the efficiency of th
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 (completed in April 2024) ・One time loss of nearly 30.0 billion yen (recorded as an adjusted item from GAAP operating pr
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. ・ Expectation of transferring the company’s shares after various examinations and a tender offer (to take place during FY 2024)
Slide 21: Adjusted Items (One-Time Gains or Losses)
Transformation Initiatives Adjusted Items (One-Time Gains or Losses) (Billions of yen) Major breakdown of Adjusted items FY2023 ▎ A one-time loss of over 30.0 billion yen from the Consolidated Adjusted Adjusted sale of the private cloud business in Germany Consolidated Results Items ▎ A one-time los
Slide 22: Adjusted items and Profit for the year
Transformation Initiatives Adjusted items and Profit for the year (Billions of yen) Change vs Jan FY2023 Change Forecast Consolidated Adjusted Consolidated Consolidated Adjusted Results Consolidated Results Results Items Results Revenue 3,756.0 3,756.0 - 42.2 -53.9 Operating Profit 160.2 283.6 -123.
Slide 23: Cash Flows, Assets, Liabilities and Equity
Cash Flows ・Assets, Liabilities and Equity 23 © 2024 Fujitsu Limited
Slide 24: Cash Flows (Consolidated)
Cash Flows (Consolidated) （Billions of yen） FY2022 FY2023 Change Core Free Cash Flow * 157.1 197.2 40.1 * 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 next pa
Slide 25: Core Free Cash Flow and Adjusted items
Core Free Cash Flow and Adjusted items (Billions of yen) FY2022 FY2023 Change Core Free Cash Flow 157.1 197.2 40.1 Adjusted items from GAAP Free Cash Flow 20.4 -45.2 -65.6 Business transfers 97.0 15.4 -81.5 Business model transformation expenditures -64.2 -6.9 57.3 M&A related expenditures -12.4 -53
Slide 26: Assets, Liabilities and Equity
Assets, Liabilities and Equity (Billions of yen) Year-end Year-end Change FY2022 FY202３ Total Assets 3,265.5 3,514.8 249.2 Total Liabilities 1,528.7 1,595.9 67.2 Total Equity 1,736.8 1,918.8 182.0 Total Equity Attributable to Owners of the Parent 1,586.8 1,752.3 165.5 Reference: Financial Indices In
Slide 27: Earnings Forecast for FY2024
Earnings Forecast for FY2024 27 © 2024 Fujitsu Limited
Slide 28: Financial Forecast
Financial Forecast (Billions of yen) FY2023 FY2024 Change (%) (Actual) (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 235.8 226.0 -9.8 -4.2 Exchange Rate U.S. dollar / Yen
Slide 29: Business Segment Information
Business Segment Information (Billions of yen) FY2023 FY2024 Change (％) （Actual） (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 -7.0 Hardware Adj. Operating Profit 83.6 70.0 -13.6 -16.
Slide 30: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +92.4 / Adjusted Operating Profit +42.8 +45.0 -52.0 +50.0 12.6% 11.1％ Improvement Investment in profitability expansion, etc. （Gross margin ratio +2%) (Development cost of Increase in profit due to FY23 35
Slide 31: Business Segment Information (Service Solutions)
Service Solutions Business Segment Information (Service Solutions) (Billions of yen) FY2023 FY2024 Change (％) ▎ Global solutions （Actual） (Forecast) Higher revenue and profit, primarily from Fujitsu Revenue 2,137.5 2,230.0 92.4 4.3 Uvance Service Adj. Operating Profit 237.2 280.0 42.8 18.0 Solutions
Slide 32: Progress of the Medium-term management plan
Service Solutions Progress of the Medium-term management plan In addition to expanding revenue foundation, (Billions of yen) continued 430.0 improvements in operating efficiency 17.0% 15.0% 380.0 15.0% 12.6% 13.0% 330.0 11.1% 360.0 11.0% 280.0 Adjusted Operating 8.2% Profit Margin (%) 280.0 9.0% 230
Slide 33: Business Segment Information (Hardware & Other Businesses)
Business Segment Information (Hardware & Other Businesses) (Billions of yen) ◼ Hardware Solutions FY2023 FY2024 Change (％) （Actual） (Forecast) Lower profits from a pull-back in large-scale server and storage deals and the end of adjustments for Revenue 1,108.0 1,030.0 -78.0 -7.0 new bank notes Hardw
Slide 34: Cash Flows
Cash Flows (Billions of yen) FY2023 FY2024 Change (Actual) (Forecast) Core Free Cash Flow 197.2 220.0 22.7 Free Cash Flow 151.9 220.0 68.0 34 © 2024 Fujitsu Limited
Slide 35: Trend of Financial Indicators
Trend of Financial Indicators Reflects the stock split implemented as of April 1, 2024 ▎Adjusted EPS [Growth over prior year] （Unit: yen） ▎ROE 125.6 15.1% 15.2% 105.1 13.5% 13.5% [20%] 97.6 12.0% 86.6 [8%] 77.9 [13%] [11%] FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23 ▎Stock price （Uni
Slide 36: Capital allocation・Return to shareholders
Capital allocation・Return to shareholders 36 © 2024 Fujitsu Limited
Slide 37: Progress on Capital Allocation (FY 2023)
Progress on Capital Allocation (FY 2023) (Billions of yen) 353.6 Growth • Growth investments: higher investments in strengthening the Fujitsu Uvance investments and consulting business, cutting-edge R&D, enhanced management foundation 202.1 FY 2023 • Shareholder returns: delay in the starting period
Slide 38: Progress on Capital Allocation
Progress on Capital Allocation ▎ Base cash flow is 1,300.0 billion yen, in line with Medium-Term Management Plan and there are no changes in the allocations of growth investments and shareholder returns (Billions of yen) 300.0 Asset recycling 250.0-300.0 Growth 202.1 200.0 Investments FY25 700.0 380
Slide 39: Shareholder Returns
Shareholder Returns ▎ Dividends: stable and steady increases FY 2023 FY 2024 Per share 9 years of dividend increases since 2015 （Actual） （Forecast） Interim 13 yen 14 yen • Dividends per share (Yen) Year-end 13 yen 14 yen 26 28 24 22 Annualized 26 yen 28 yen 18 20 15 11 8 9 Total dividends 48.4 billi
Slide 40: Shareholder Returns
Shareholder Returns ▎ Stock buyback: increased to 180.0 billion yen ▎ Total shareholder returns (Billions of yen) FY 2023 FY 2024 （Actual） （Forecast） FY 2023 FY 2024 FY 2025 （Actual） （Forecast） （Plan） Buyback 103.1 billion yen 180.0 billion yen Dividends 48.4 50.0 (50.0) amount Stock buybacks 103.1
Slide 41: Thank you
Thank you 41 © 2024 Fujitsu Limited
Slide 42: 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 43: Supplementary
Supplementary 43 © 2024 Fujitsu Limited
Slide 44: Consolidated PL (Year total)
Financial Results Consolidated PL (Year total) Adjusted Consolidated Results (Billions of yen) Change vs FY2022 FY2023 Change (％) Jan Forecast Revenue 3,713.7 3,756.0 42.2 1.1 -53.9 Excl. Impact of restructuring 3,675.0 3,756.0 80.9 2.2 -53.9 Impact of restructuring 38.6 - -38.6 - - Adjusted Operati
Slide 45: 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 4Q Total Revenue 818.8 886.4 931.4 1,077.0 3,713.7 799.6 912.2 930.8 1,113.3 3,756.0 Excl. Impact of restructuring 795.6 871.0 931.4 1,077.0 3,675.0 799.6 912.2 930.8
Slide 46: Business Segment Information (Year total)
Financial Results Business Segment Information (Year total) (Billions of yen) Change vs FY2022 FY2023 Change (％) Jan Forecast Revenue 1,984.2 2,137.5 153.3 7.7 -32.4 Excl. Impact of Service restructuring 1,945.5 2,137.5 192.0 9.9 -32.4 Solutions Impact of restructuring 38.6 - -38.6 - - Adj. Operatin
Slide 47: 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 4Q Total Service Revenue 445.6 459.5 481.4 597.6 1,984.2 465.4 518.7 537.8 615.5 2,137.5 Solutions Adj. Operating Profit 9.0 10.0 35.4 108.5 162.9 20.9 42.5 52.8 120.8 237.2 Global Re
Slide 48: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) FY2023 Change FY2024 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total (Forecast) Vertical 13.2 24.0 30.6 56.4 124.4 7.1 18.4 23.2 45.6 94.4 200.0 Horizontal 59.7 74.1 93.8 97.2 324.9 11.4 33.6 37.1 22.8 104.9 310.0 Orders (%) 134% 213% 194% 180% 180% 114% Total
Slide 49: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) FY2022 FY2023 Change Revenue 581.7 604.1 22.4 Regions (International) Adj. Operating Profit 10.3 10.3 - Revenue 396.4 419.1 22.6 Europe Adj. Operating Profit 1.1 2.3 1.2 Revenue 52.6 54.1 1.5 Americas Adj. Operating Profit 2.9
Slide 50: 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 4Q Total Adjusted Operating Profit 28.0 46.7 76.9 169.0 320.8 2.6 48.1 68.0 164.8 283.6 Adjusted items from GAAP Operating Profit -2.4 28.5 -4.6 -6.7 14.7 -4.2 -1.7 -64.7 -52.6 -123
Slide 51: 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 4Q Total Core Free Cash Flow 127.1 -63.5 -27.7 121.2 157.1 182.8 -91.7 -16.0 122.1 197.2 Adjusted items from GAAP Free Cash Flow -61.0 44.6 30.1 6.5 20.4 -57.2 0.7 50.9 -39.7 -45.2 Bu
Slide 52: Change vs Jan Forecast (Unadjusted)
Financial Results Change vs Jan Forecast (Unadjusted) (Millions of yen) Change vs Jan (Reference) FY2023 Jan Forecast % FY2022 Forecast Revenue 3,810,000 3,756,059 -53,941 -1.4 3,713,767 Operating Profit 250,000 160,260 -89,740 -35.9 335,614 Financial income (expenses), -42,000 94,218 136,218 ー -120
Slide 53: Financial Forecast - Adjusted Consolidated Results and Adjusted items
Earnings Forecast Financial Forecast -Adjusted Consolidated Results and Adjusted items (Billions of yen) FY2023(Actual) FY2024(Forecast) Change Consolidated Adjusted Consolidated Adjusted Consolidated Adjusted Adjusted Adjusted Adjusted Results Consolidated Results Consolidated Results Consolidated
Slide 54: Assumption used for FY2024 Forecasts
Earnings Forecast Assumption used for FY2024 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation Impact of Exchange Rate FY2022 FY2023 FY2024 Fluctuation (Actual) (Actual) (Forecast) FY2024 (Forecast)* U.S. dollar / Yen 135 145 140 -0.6 Billion yen Euro / Yen 141 157 150 -0.2 Billion yen B
Slide 55: Assumption used for FY2024 Forecasts
Earnings Forecast Assumption used for FY2024 Forecasts 2. Capital Expenditures and Depreciation （Property, Plant and Equipment） (Billions of yen) FY2022 FY2023 FY2024 (Actual) (Actual) (Forecast) Service Solutions 27.8 31.5 35.0 Hardware Solutions 9.0 10.9 12.0 Ubiquitous Solutions - - - Device Solu