Slide 1: FY2020 Consolidated Financial Results
FY2020 Consolidated Financial Results April 28, 2021 Fujitsu Limited 1 Copyright 2021 FUJITSU LIMITED
Slide 2: Contents
Contents １．Financial Results for FY2020 ２．Earnings Forecast for FY2021 2 Copyright 2021 FUJITSU LIMITED
Slide 3: 1. Financial Results for FY2020
1. Financial Results for FY2020 3 Copyright 2021 FUJITSU LIMITED
Slide 4: FY 2020 Financial Summary
1.Financial Results for FY2020 FY 2020 Financial Summary Performance • Despite the impact of COVID-19, and despite lower revenue relative to the previous year because of last year’s strong demand for PCs, due to steady progress in profitability improvements, we achieved our highest ever operating pr
Slide 5: Consolidated PL
1.Financial Results for FY2020 Consolidated PL (Billions of yen) FY2019 FY2020 Change vs. Change Jan forecast （Actual） （Actual） (%) Revenue 3,857.7 3,589.7 -268.0 -6.9 -20.2 Operating Profit 211.4 266.3 54.8 25.9 29.3 [Operating Profit Margin] [5.5%] [7.4%] [1.9%] [0.8%] Financial income (expenses),
Slide 6: Consolidated PL (YoY)
1.Financial Results for FY2020 Consolidated PL (YoY) ■Revenue • Revenue fell compared to the previous year, due to the negative impact of COVID-19 and a significant increase in demand for PCs last year that did not recur this year, resulting in a relative fall in revenue. ■OPPL • Excl. special items
Slide 7: Financial Results
1.Financial Results for FY2020 Financial Results (Billions of yen) FY2019 FY2020 Impact of Excl. Change Impact of （Actual） （Actual） COVID-19 COVID-19 Revenue 3,713.8 3,539.4 -174.4 -146.9 -27.4 Excl. restructuring OPPL 231.3 250.2 18.9 -48.2 67.1 and special items [Operating Profit Margin] [6.2%] [7
Slide 8: Factors Behind Change in Operating Profit
1.Financial Results for FY2020 Factors Behind Change in Operating Profit (Billions of yen) Improvement Excl. Impact of COVID-19 Impact of COVID-19 Rate of change ･Sales -27.4 ･Decrease in sales -146.9 ･Operating Profit +67.1 ･Operating Profit -48.2 [-4%] Restructuring and special items 266.3 ･Sales
Slide 9: Revenue by Segments
1.Financial Results for FY2020 Revenue by Segments Breakdown of change vs LY Positive impact excl COVID-19 : System Platforms (5G base station), Device Solutions Negative impact excl COVID-19 : Ubiquitous Solutions (Recoil from the previous year's special demand) Impact of COVID-19 : Revenue decreas
Slide 10: Profitability Improvement and Reduction in Operating Expenses
1.Financial Results Profitability Improvement for FY2020 Reduction in Operating Expenses Gross margin ratio … Improvement by 1.0% FY2020 ・Solutions/services Improvement in profitability continued from the first half Gross margin ratio 30.5% ・System Platforms Improved due to the impact of product mix
Slide 11: Overall orders in Japan (Fujitsu Limited only)
1.Financial Results for FY2020 Overall orders in Japan (Fujitsu Limited only) FY2020(Actual) Industries [Excl. Orders [Excl. Orders 1Q 2Q 3Q 4Q For PC ] Total For PC ] Private Enterprise [Manufacturing & Distribution] 93% 85% 93% 100% [ 99%] 92% [ 93%] Finance＆Retail 89% 84% 100% 91% [ 93%] 90% [ 94
Slide 12: Progress in Business Model Transformation
1.Financial Results for FY2020 Progress in Business Model Transformation ● Business Reorganization Outside Japan ・European product business: Completed the closure of a factory, the transfer of production to EMS, and the consolidation of R&D functions. ・Exit from unprofitable countries in Europe: Com
Slide 13: Change vs Jan Forecast
1.Financial Results for FY2020 Change vs Jan Forecast Change vs Jan Forecast OPPL Forecast 237.0 billion yen ⇒ Actual 266.3 billion yen ＋29.3 billion yen ● Excl. restructuring and special items +20.0 billion yen ・Technology Solutions +2.0 billion yen ・Ubiquitous Solutions +9.0 billion yen ・Device So
Slide 14: Business Segment Information
1.Financial Results for FY2020 Business Segment Information (Billions of yen) FY2019 FY2020 Change vs. Special items/ Special items/ Change Excl. Special items/ Impact of （Actual） restructuring （Actual） restructuring Special items restructuring COVID-19 Jan forecast Technology Solutions 3,212.9 54.5
Slide 15: Business Segment Information: Technology Solutions
1.Financial Results for FY2020 Business Segment Information Technology Solutions (Billions of yen) [Revenue] Revenue fell significantly due to the impact of COVID-19 and Technology FY2019 FY2020 restructuring. Change Impact of COVID-19: -165.4 billion yen Solutions (Actual) (Actual) (%) Impact of bu
Slide 16: Technology Solutions (Solutions/Services)
1.Financial Results for FY2020 Business Segment Information 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, as Solutions/ FY2019 FY2020 there was a drop in hardware-rel
Slide 17: Technology Solutions (System Platforms)
1.Financial Results for FY2020 Business Segment Information Technology Solutions (System Platforms) (Billions of yen) [Revenue] (System Products) System FY2019 FY2020 Change Fall in revenue due to the significant impact of COVID-19: Platforms (Actual) (Actual) (%) -32.0 billion yen Impact of changes
Slide 18: Technology Solutions (International Regions Excluding Japan)
1.Financial Results for FY2020 Business Segment Information Technology Solutions（International Regions Excluding Japan） (Billions of yen) [Revenue] International Revenue was significantly impacted by the negative effects of FY2019 FY2020 Regions Change COVID-19 and business restructuring (Actual) (A
Slide 19: Technology Solutions (Common)
1.Financial Results for FY2020 Business Segment Information Technology Solutions（Common） (Billions of yen) FY2019 FY2020 Common Change (Actual) (Actual) Excl. Special items -32.6 -47.8 -15.2 Special items 9.6 - -9.6 Operating profit -22.9 -47.8 -24.9 • Increase in internal DX investments to deliver
Slide 20: Two Business Areas for Value Creation (Technology Solutions)
1.Financial Results Two Business Areas for Value Creation for 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 of h
Slide 21: Business Segment Information: Ubiquitous Solutions
1.Financial Results for FY2020 Business Segment Information Ubiquitous Solutions (Billions of yen) [Revenue] Ubiquitous FY2019 FY2020 Business restructuring: -26.4 billion yen Change Solutions (Actual) (Actual) (%) -> Impact of excluding the mobile phone retail store business from the consolidated r
Slide 22: Business Segment Information: Device Solutions
1.Financial Results for FY2020 Business Segment Information Device Solutions (Billions of yen) [Revenue] Business restructuring: -39.1 billion yen Device FY2019 FY2020 Excluding special items and restructuring, revenue rose 9.1%, Change primarily in electronic components Solutions (Actual) (Actual)
Slide 23: Cash Flows
1.Financial Results for FY2020 Cash Flows （Billions of yen） FY2019 FY2020 Change （Actual） （Actual） Ⅰ Cash flows from operating activities 347.2 307.9 -39.3 Ⅱ Cash flows from investing activities -114.2 -71.5 42.6 Ⅰ+Ⅱ Free Cash Flow 233.0 236.3 3.3 Ⅲ Cash flows from financing activities -193.1 -219.6
Slide 24: Assets, Liabilities and Equity
1.Financial Results for FY2020 Assets, Liabilities and Equity (Billions of yen) Year-end Year-end Change FY2019 FY2020 Total Assets 3,187.4 3,190.2 2.7 Total Liabilities 1,839.0 1,643.3 -195.7 Total Equity 1,348.4 1,546.9 198.4 Total Equity Attributable to Owners of the Parent 1,240.9 1,450.1 209.1
Slide 25: Returns to Shareholders
1.Financial Results for FY2020 Returns to Shareholders ■ Dividend (Per Share) ■ Total return amount (Billions of yen) FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 （ Actual） （ Actual） （ Actual） （ Actual） （ Actual） （ Actual） End of First Half 70 Yen 80 Yen 100 Yen Dividends 30.5 36.2 39.9 End of Fiscal Y
Slide 26: 2. Earnings Forecast for FY2021
2. Earnings Forecast for FY2021 26 Copyright 2021 FUJITSU LIMITED
Slide 27: Financial Forecast
2.Earnings Forecast for FY2021 Financial Forecast (Billions of yen) FY2020 FY2021 Change （Actual） (Forecast) (%) Revenue 3,589.7 3,630.0 40.2 1.1 Operating Profit 266.3 275.0 8.6 3.3 [Operating Profit Margin] [7.4%] [7.6%] [0.2%] Profit for the Year Attributable to 202.7 205.0 2.3 1.1 Owners of the
Slide 28: Business Segment Information (Forecast)
2.Earnings Forecast for FY2021 Business Segment Information (Billions of yen) FY2020 FY2021 (Actual) (Forecast) Change Revenue 3,043.6 3,200.0 156.3 ・ Revenue: 5% Growth ⊕ Resumption of projects put on hold Excl. special items 195.8 240.0 44.1 ⊕ DX business expansion ⊕ Higher revenue in Network Prod
Slide 29: Business Segment Information (Forecast)
2.Earnings Forecast for FY2021 Business Segment Information (Billions of yen) FY2020 FY2021 (Actual) (Forecast) Change Revenue 293.8 300.0 6.1 ・ Revenue ⊕High levels of demand for electronic components Device special items - - - will continue Solutions OPPL 29.8 30.0 0.1 ・ OPPL In line with the prev
Slide 30: Factors Behind Change in Operating Profit: Technology Solutions
2.Earnings Forecast Factors Behind Change in Operating Profit for FY2021 Breakdown of Technology Solutions (Billions of yen) Expansion of Earnings ・Building out important focus areas ・Continued strengthening of the Services business 240.0 Global Offerings Cloud-first [7.5%] DX Business Improvement i
Slide 31: Path to Achieving Technology Solutions Goals
2.Earnings Forecast for FY2021 Path to Achieving Technology Solutions Goals (Billions of yen) 10.0% Operating Profit Margin 7.5% 5.8% 6.2% 3,500.0 Revenue 3,212.9 3,200.0 3,043.6 Factors Behind Change in Operating Profit (Billions of yen) FY2019 FY2020 FY2021 ⇒FY2020 ⇒FY2021 ⇒FY2022 [-169.2] [156.3]
Slide 32: Cash Flows
2.Earnings Forecast for FY2021 Cash Flows Free Cash Flow (Billions of yen) FY2019 FY2020 FY2021 (Actual) (Actual) (Forecast) Free Cash Flow 233.0 236.3 210.0 32 Copyright 2021 FUJITSU LIMITED
Slide 33: Capital Allocation Policy
2.Earnings Forecast for FY2021 Capital Allocation Policy Capital Allocation Policy (Material republished from July 2020) (1) Cash flow: Create free cash flow of over 1 trillion yen over the Over the next Executing Strategic Growth Investments next five years 5 years (2) Allocation: Cash flow will be
Slide 34: Capital Allocation: Growth Investments
2.Earnings Forecast for FY2021 Capital Allocation Policy Allocation: Growth Investments – 500-600 billion yen over 5 years We will actively pursue growth investments in fiscal 2021, leading to business expansion and improvements in profitability （Billions of yen） FY2020 FY2021 FY22-24 FY20-24 （Actua
Slide 35: Capital Allocation: Shareholder Returns
2.Earnings Forecast for FY2021 Capital Allocation Policy Allocation: Shareholder Returns – 400-500 billion yen over 5 years In addition to ensuring stable dividends, we will actively conduct share buybacks, keeping capital efficiency in mind, and expand the overall amount of returns （Billions of yen
Slide 36: Shareholder Returns for Fiscal 2021
2.Earnings Forecast for FY2021 Capital Allocation Policy Shareholder Returns for Fiscal 2021 (Reprint) • Dividends: 220 yen/share (110 yen intermediate, 110 yen year-end), an increase of 20 yen, year over year Total dividend: 43.1 billion yen • Stock Buybacks: 50 billion yen (buyback period: May 6,
Slide 37: Improvement of Corporate Value
2.Earnings Forecast for FY2021 Improvement of Corporate Value In fiscal 2020, we achieved our highest ever operating profit and profit for the year [A first step toward achieving our medium-term targets] In fiscal 2021, we aim to expand our businesses and strengthen our earnings capability through a
Slide 38: Fujitsu: shaping tomorrow with you
CO FUJITSU shaping tomorrow with you
Slide 39: 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 40: Supplementary
Supplementary 40 Copyright 2021 FUJITSU LIMITED
Slide 41: Business Segment Information: Quarterly Breakdown of Results
(Supplementary) Business Segment Information Financial Results for FY2020 [Quarterly Breakdown of Results] (Billions of yen) FY2019 (Actual) FY2020 (Actual) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Technology Revenue 677.1 807.1 770.0 958.5 679.1 698.3 753.5 912.6 Solutions OPPL 7.5 56.2 40.9 83.1 12.6 29.6 52.3 93.
Slide 42: Two Business Areas: Composition of Businesses
(Supplementary) Financial Results Two Business Areas for Value Creation for 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 (Applications
Slide 43: Two Business Areas for Value Creation (Technology Solutions)
(Supplementary) Two Business Areas for Value Creation Financial Results for FY2020 (Technology Solutions) (Billions of yen) FY2019 (Actual) FY2020 (Actual) Change For For For For For For Total Total Total Growth Stability Growth Stability Growth Stability Technology Growth Rate 100% 92% 95% Solution
Slide 44: Revenue Breakdown In and Outside Japan
(Supplementary) Business Segment Information Financial Results for FY2020 [ Revenue Breakdown-In and Outside Japan] (Billions of yen) FY2019 FY2020 Change (Actual) (Actual) (％) Revenue 3,212.9 3,043.6 -169.2 -5.3 Technology Solutions Japan 2,304.2 2,193.4 -110.8 -4.8 Outside Japan 908.6 850.1 -58.4
Slide 45: Breakdown of International Regions Excluding Japan
(Supplementary) Breakdown of International Regions Financial Results for FY2020 Excluding Japan (Billions of yen) Change FY2019 FY2020 Excl. (Actual) (Actual) Special items/ Special restructuring items/restructuring International Regions Revenue 766.3 723.7 -28.0 -14.6 Operating Excluding Japan Prof
Slide 46: Changes in Financial Indicators
(Supplementary) Financial Results for FY2020 Changes in Financial Indicators (Billions of yen) FY2018 FY2019 FY2020 （ Actual） （ Actual） （Actual） Interest-bearing Loans 316.2 405.5 316.3 (Net Interest-bearing Loans) (-100.4) (-46.2) (-165.5) D/E Ratio (Times) 0.28 0.33 0.22 Equity Attributable to Own
Slide 47: Earnings Forecast: Breakdown of Technology Solutions
(Supplementary) Earnings Forecast Business Segment Information for FY2021 Breakdown of Technology Solutions (Billions of yen) FY2020 FY2021 Special items Special items Change Excl. Special items （Actual） （Forecast） Special items Technology Solutions 3,043.6 - 3,200.0 - 156.3 156.3 - Solutions/Servic
Slide 48: Assumption used for FY2021 Forecasts: Exchange Rates
(Supplementary) Earnings Forecast for FY2021 Assumption used for FY2021 Forecasts 1. Exchange Rates（Average）and Impact of Fluctuation Impact of FY2019 FY2020 FY2021 Exchange Rate (Actual) (Actual) (Forecast) Fluctuation (Forecast)* U.S. dollar / Yen 109 106 105 -0.7 Billion yen Euro / Yen 121 124 12
Slide 49: Assumption used for FY2021 Forecasts: Capex, Depreciation, R&D
(Supplementary) Earnings Forecast for FY2021 Assumption used for FY2021 Forecasts 2. Capital Expenditures and Depreciation （Property, Plant and Equipment） (Billions of yen) FY2019 FY2020 FY2021 (Actual) (Actual) (Forecast) Technology Solutions 53.8 46.6 57.5 Ubiquitous Solutions 0.2 0.2 0.5 Device S