Slide 1: 2Q FY2024 Consolidated Financial Results
2Q FY2024 Consolidated Financial Results October 31, 2024 Fujitsu Limited 1 © 2024 Fujitsu Limited
Slide 2: Financial Results for 1H FY2024
Financial Results for 1H FY2024 2 © 2024 Fujitsu Limited
Slide 3: FY2024 1H Results: Overview
FY 2024 1H Results: Overview ▌ Revenue up 3.4% from the previous year (Billions of yen) Service Solutions ・Revenue up 7% in Japan, driven by DX and modernization deals ・Revenue down 4% outside of Japan vs Revenue 1,017.5 LY +3.4% because of carve outs of low profitability businesses Adjusted vs Oper
Slide 4: Business Segment Information
Business Segment Information (Billions of yen) 1H FY2023 1H FY2024 Change (%) Revenue 984.1 1,017.5 33.3 3.4 Service Solutions Adj. Operating Profit 63.4 88.7 25.2 39.8 [%] [6.4%] [8.7%] [2.3%] Hardware Revenue 477.5 456.6 -20.9 -4.4 Solutions Adj. Operating Profit 17.4 3.1 -14.3 -82.2 Ubiquitous 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 1H FY2023 1H FY2024 Change (%) Revenue in Japan increased by 7%, with strong growth in DX and modernization deals Revenue 984.1 1,017.5 33.3 3.4 Revenue outside of Japan decreased by 4% because of the impact of the carve out of th
Slide 7: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +33.3 / Adjusted Operating Profit +25.2 +25.2 -16.6 8.7% +16.6 Investment Improvement expansion, etc. (Development cost of 6.4% in profitability Fujitsu Uvance, etc.) (Gross margin ratio +2.6%) 1H FY23 32.
Slide 8: Orders in Japan
Service Solutions Orders in Japan Continued expansion in DX and modernization deals There was a pullback in public orders compared to the several large-scale multi-year deals won in the previous year FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 1H Japan 118% 118% 115% 116% 97% 101% 99% Private Enterprise Busines
Slide 9: Orders in Regions (International)
Service Solutions Orders in Regions (International) Europe and Americas : Pullback from large-scale multi-year deals in the first half of the previous year Asia Pacific: Renewal of multi-year services deals in Oceania with finance and retail customers FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 1H Europe 104% 6
Slide 10: Fujitsu Uvance
Service Solutions Fujitsu Uvance Period of the (Billions of yen) Medium-Term Up 56% Management Orders Up 30% 223.1 Plan Up 22% 171.0 FY25 700.0 increase Up 84% 450.0 Vertical 200.7 367.9 180.0 400.0 Up 31% Vertical Revenue 153.7 63.2 116.3 32.8 increase Vertical Up 93% Horizontal Horizontal 120.8 13
Slide 11: Status of Modernization
Service Solutions Status of Modernization *Excludes Fujitsu Uvance Expansion of demand in modernization business driven by DX and cloud conversions Progress in the strategic shift to DX from legacy assets and creation of new markets and a broadening of sales (Billions of yen) FY2024 1H FY2024 Ch
Slide 12: Improvement in Profitability and Growth Investments
Service Solutions Improvement in Profitability and Growth Investments Improvement in profitability: +25.2 billion yen Investment expansion: -16.6 billion yen Aggressive investments for growth ▎ Trends in gross margin Development of offerings Up 2.6％ Aggregation of modernization Uvance knowledge 35
Slide 13: Breakdown by Sub-Segment
Service Solutions Breakdown by Sub-Segment (Billions of yen) ▎ Global Solutions 1H FY2023 1H FY2024 Change (％) Higher revenue, primarily from Fujitsu Uvance Revenue 984.1 1,017.5 33.3 3.4 Service Adjusted Operating Continued investment in the development of offerings 63.4 88.7 25.2 39.8 Solutions Pr
Slide 14: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) ◼ System Products 1H FY2023 1H FY2024 Change (%) • Lower revenue because of pullback from the previous year when there were major server and Revenue 477.5 456.6 -20.9 -4.4 storage deals in Japan (from public sector customers) System Products 404.5 383.3 -21.2 -
Slide 15: Device Solutions and Inter-Segment Elim./Corporate
◼ Device Solutions (Billions of yen) 1H FY2023 1H FY2024 Change (%) Revenue 142.6 147.4 4.7 3.3 ◼ Improvement in factors, including positive foreign Adjusted exchange movements 9.3 13.4 4.1 44.1 Operating Profit [Adj. operating profit margin] [6.6%] [9.1%] [2.5%] ◼ Inter-Segment Elim./ Corporate (Bi
Slide 16: Trend of Adjusted Operating Profit
Trend of Adjusted Operating Profit (Billions of yen) FY2023 FY2024 Change 1H 2H Total 1H 2H Total 1H 2H (Actual) (Actual) (Actual) (Actual) (Forecast) (Forecast) Adjusted Operating Profit 50.7 232.9 283.6 79.5 250.4 330.0 28.7 17.5 Total （調整後営業利益率） [%] [3.0%] [11.4%] [7.6%] [4.7%] [12.1%] [8.8%] [1.
Slide 17: Adjusted Consolidated Results and Adjusted items
Adjusted Consolidated Results and Adjusted items Approximately 20 billion yen to expand the Self-Produce Support System for transforming the human resource portfolio Implemented a time-limited expansion of the Self-Produce Support System for manager-level employees without direct customer responsibi
Slide 18: Cash Flows, Assets, Liabilities and Equity
Cash Flows, Assets, Liabilities and Equity 18 © 2024 Fujitsu Limited
Slide 19: Cash Flows (Consolidated)
Cash Flows (Consolidated) (Billions of yen) 1H FY2023 1H FY2024 Change Core Free Cash Flow * 91.1 93.7 2.6 * 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
Slide 20: Assets, Liabilities and Equity (Consolidated)
Assets, Liabilities and Equity (Consolidated) (Billions of yen) Year-end End of Change FY2023 1H FY2024 Total Assets 3,514.8 3,382.1 -132.6 Total Liabilities 1,595.9 1,481.4 -114.5 Total Equity 1,918.8 1,900.7 -18.0 Total Equity Attributable to Owners of the Parent 1,752.3 1,731.3 -21.0 Reference: F
Slide 21: Earnings Forecast for FY2024
Earnings Forecast for FY2024 21 © 2024 Fujitsu Limited
Slide 22: 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 yea
Slide 23: 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 24: Business Segment Information (2H)
Business Segment Information(2H) (Billions of yen) FY2024 Change 1H 2H Total 1H 2H Total (Actual) (Forecast) (Forecast) Service Revenue 1,017.5 1,212.4 2,230.0 33.3 59.0 92.4 Solutions Adj. Operating Profit 88.7 191.2 280.0 25.2 17.5 42.8 Hardware Revenue 456.6 573.3 1,030.0 -20.9 -57.0 -78.0 Soluti
Slide 25: Financial Forecast: Adjusted Consolidated Results and Adjusted Items
Financial Forecast: Adjusted Consolidated Results and Adjusted Items A reduction of approximately 20 billion yen by including adjustments to operating profit from 1H FY2024 ▎ Adjustment items: Implemented a time-limited expansion of the Self-Produce Support System for manager-level employees without
Slide 26: 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 26 © 2024 Fujitsu Limited
Slide 27: Thank you
Thank you © 2024 Fujitsu Limited
Slide 28: 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 29: Supplementary
Supplementary 29 © 2024 Fujitsu Limited
Slide 30: Consolidated PL (1H)
Financial Results Consolidated PL (1H) Adjusted Consolidated Results (Billions of yen) FY2024 Change 1Q 2Q 1H 1Q 2Q 1H Revenue 830.0 866.6 1,696.6 30.3 -45.6 -15.2 Adjusted Operating Profit 23.6 55.8 79.5 21.0 7.7 28.7 [Adjusted Operating Profit Margin] [2.8%] [6.4%] [4.7%] [2.5%] [1.1%] [1.7%] Fina
Slide 31: Consolidated PL by quarter
Financial Results Consolidated PL by quarter Adjusted Consolidated Results (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q 2Q Revenue 799.6 912.2 930.8 1,113.3 3,756.0 830.0 866.6 Adjusted Operating Profit 2.6 48.1 68.0 164.8 283.6 23.6 55.8 [Adjusted Operating Profit Margin] [0.3%] [5.3%] [7.3
Slide 32: Adjusted items by quarter
Financial Results Adjusted items by quarter (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q 2Q Adjusted Operating Profit 2.6 48.1 68.0 164.8 283.6 23.6 55.8 Adjusted items from GAAP Operating Profit -4.4 -2.3 -65.4 -51.1 -123.4 -2.2 -20.8 One-time Profit/Loss from business transfers - - -32.8 -
Slide 33: Business Segment Information by quarter
Financial Results Business Segment Information by quarter (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q 2Q Service Revenue 465.4 518.7 537.8 615.5 2,137.5 501.6 515.9 Solutions Adj. Operating Profit 20.9 42.5 52.8 120.8 237.2 34.9 53.7 Global Revenue 104.2 113.4 113.7 148.8 480.3 129.0 117.6
Slide 34: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) FY2024 Change FY2024 1Q 2Q 1H 1Q 2Q 1H (Forecast) Vertical 33.4 45.7 79.2 20.2 21.6 41.9 200.0 Horizontal 75.7 68.1 143.9 16.0 -5.9 10.1 310.0 Orders (%) 150% 116% 130% 114% Total 109.2 113.8 223.1 36.3 15.7 52.0 510.0 [Japan*] [68.7] [79.0] [147.7]
Slide 35: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) FY2023 FY2024 1Q 2Q 3Q 4Q Total 1Q 2Q Revenue 141.0 147.4 157.1 158.5 604.1 142.2 133.4 Regions (International) Adj. Operating Profit -3.6 -2.5 3.0 13.5 10.3 -0.5 3.8 Revenue 96.8 102.1 109.8 110.3 419.1 92.8 90.4 Europe Adj. O
Slide 36: 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 2Q Core Free Cash Flow 182.8 -91.7 -16.0 122.1 197.2 167.7 -74.0 Adjusted items from GAAP Free Cash Flow -57.2 0.7 50.9 -39.7 -45.2 -37.2 -8.2 Business transfers -18.8 11.9 56.5
Slide 37: Consolidated PL (Current Forecast)
Earnings Forecast Consolidated PL (Current Forecast) 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 [Adjusted Operating Profit Margin] [7
Slide 38: 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 39: Trend of Adjusted Operating Profit (Service Solutions)
Earnings Forecast Trend of Adjusted Operating Profit (Service Solutions) (Billions of yen) 1Q 2Q 1H 2H Total Adjusted Operating Profit 9.0 10.0 19.0 143.9 162.9 FY2022 （調整後営業利益率） [Adj. Operating profit margin] [2.0%] [2.2%] [2.1%] [13.3%] [8.2%] Ratio of Annual Total 5.5% 6.1% 11.7% 88.3% 100.0% Adj
Slide 40: 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) 1H 2H Previous 2H (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 145 153 140 - -0.4 Billion yen Euro / Yen 157
Slide 41: 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) 1H Full year Change vs. FY2023 FY2024 FY2023 FY2024 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Service Solutions 13.5 11.2 31.5 35.0 - Hardwa
Slide 42: Notice of Information Disclosure
Supplementary Notice of Information Disclosure Integrated Report 2024 The Fujitsu Integrated Report introduces the Fujitsu Group’s initiatives for business activities and value creation comprehensively. Sustainability Data Book 2024 Group Sustainability Data Book summarizes the Fujitsu Group's socia