Slide 1: 1Q FY2023 Consolidated Financial Results
1Q FY2023 Consolidated Financial Results July 27, 2023 Fujitsu Limited 1 © 2023 Fujitsu Limited
Slide 2: Financial Results for 1Q FY2023
Financial Results for 1Q FY2023 2 © 2023 Fujitsu Limited
Slide 3: FY 2023 1Q Results: Overview
FY 2023 1Q Results: Overview Revenue ▎ Service Solutions achieved double-digit growth, [Total] 799.6 vs +0.5% primarily from business in Japan. billion yen LY Growth of Fujitsu Uvance was driven by DX and modernization, with growth in revenue of 1.5x Service 465.4 vs +10.2% Order was also off to a s
Slide 4: Consolidated PL (1Q)
Consolidated PL(1Q) (Billions of yen) 1Q FY2022 1Q FY2023 Change (%) Revenue 818.8 799.6 -19.2 -2.3 Excl. Impact of restructuring 795.6 799.6 4.0 0.5 Impact of restructuring 23.2 - -23.2 - Adjusted Operating Profit 28.0 2.6 -25.4 -90.7 [Adjusted Operating Profit Margin] [3.4%] [0.3%] [-3.1%] Adjuste
Slide 5: Business Segment Information
Business Segment Information 5 © 2023 Fujitsu Limited
Slide 6: Business Segment Information
Business Segment Information (Billions of yen) 1Q FY2022 1Q FY2023 Change (％) Revenue 445.6 465.4 19.7 4.4 Excl. Impact of restructuring 422.3 465.4 43.0 10.2 Service Solutions Impact of restructuring 23.2 - -23.2 - Adj. Operating Profit 9.0 20.9 11.9 132.5 [%] [2.0%] [4.5%] [2.5%] Revenue 224.2 216
Slide 7: Service Solutions
Service Solutions ◼ Service Solutions (Billions of yen) ▋ Compared to 1Q of Prior Year 1Q FY2022 1Q FY2023 Change (%) Revenue 445.6 465.4 19.7 4.4 ▎ Revenue Excl. Impact of 422.3 465.4 43.0 10.2 Solid growth in DX and modernization deals in Japan restructuring [Uvance] [45.9] [70.4] [24.5] [53.4]
Slide 8: Factors Behind Change in Adjusted Operating Profit
Service Solutions Factors Behind Change in Adjusted Operating Profit (Billions of yen) Revenue +43.0 / Adjusted Operating Profit +11.9 7.5 -8.9 13.3 Improvement Investment In profitability （Gross margin ratio +1.6%) expansion, etc. (Development cost of Uvance, etc.) 20.9 Increase in profit due to in
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 Total 1Q Japan 111% 105% 100% 112% 107% 118% Private Enterprise Business [Manufacturing & Distribution & Retail ] 108% 105% 101% 109% 106% 107% Finance Business
Slide 10: Orders in Regions (International)
Service Solutions Orders in Regions (International) Growth in the Europe and Asia Pacific regions, primarily from public sector customers Solid growth from the prior year in the Americas region, primarily with private sector customers FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q Europe 101% 170% 85% 75% 101%
Slide 11: Uvance
Service Solutions Uvance 700.0 (Billions of yen) First Quarter Year Total (1Q FY2022→1Q FY2023) (FY22→FY23→FY25) Vertical 400.0 Up 130% Uvance Up 53% 300.0 Revenue 70.4 Up 50% increase 45.9 Vertical 10.3 200.0 15.0 100.0 Horizontal 3.2 300.0 185.0 200.0 42.7 Horizontal 60.1 1Q FY2022(Actual) 1Q FY20
Slide 12: Service Solutions
Service Solutions 12 © 2023 Fujitsu Limited
Slide 13: Costs/Expenses
Service Solutions Costs/Expenses Improved profitability: +7.5 billion yen on an improvement in gross margin of 1.6 percentage points ▎ Steady increase in the profitability of services in Japan because of progress in development standardization, automation, insourcing ・Personnel in GDC/JGG: 30,000 at
Slide 14: Breakdown by sub-segment
Service Solutions Breakdown by sub-segment (Billions of yen) 1Q FY2022 1Q FY2023 Change ▋ Compared to 1Q of Prior Year (％) Revenue 445.6 465.4 19.7 4.4 Excl. Impact of restructuring 422.3 465.4 43.0 10.2 ▎ Global Solutions Service 23.2 - -23.2 - Solutions Impact of restructuring Higher revenue, prim
Slide 15: Hardware Solutions and Ubiquitous Solutions
◼ Hardware Solutions (Billions of yen) 1Q FY2022 1Q FY2023 Change (%) Revenue 224.2 216.8 -7.3 -3.3 ◼ System Products: Higher revenue from the resolution of the chip shortage System Products 178.5 185.2 6.6 3.7 ◼ Network Products Network Products 45.6 31.6 -14.0 -30.7 Adjusted • Pull-back from prior
Slide 16: Device Solutions and Inter-segment Elim./Corporate
◼ Device Solutions (Billions of yen) 1Q FY2022 1Q FY2023 Change (%) ◼ Revenue Revenue 104.1 67.4 -36.7 -35.2 Lower revenue on continued weak demand for Adjusted 26.4 2.2 -24.1 -91.3 semiconductor packages Operating Profit [Adj. Operating profit margin] [25.4%] [3.4%] [-22.0%] ◼ Adjusted Operating pr
Slide 17: Cash Flows
Cash Flows （Billions of yen） 1Q FY2022 1Q FY2023 Change Ⅰ Cash flows from operating activities 124.6 168.2 43.6 Ⅱ Cash flows from investing activities -58.4 -42.5 15.8 Ⅰ+Ⅱ Free Cash Flow 66.1 125.6 59.5 Ⅲ Cash flows from financing activities -68.6 -24.8 43.7 [ Core Free Cash Flow *] [127.1] [182.8]
Slide 18: Assets, Liabilities and Equity
Assets, Liabilities and Equity (Billions of yen) Year-end End of Change FY2022 1Q FY2023 Total Assets 3,265.5 3,240.0 -25.5 Total Liabilities 1,528.7 1,444.2 -84.5 Total Equity 1,736.8 1,795.7 58.9 Total Equity Attributable to Owners of the Parent 1,586.8 1,642.0 55.2 Reference: Financial Indices In
Slide 19: Earnings Forecast for FY2023
Earnings Forecast for FY2023 19 © 2023 Fujitsu Limited
Slide 20: Financial Forecast
Financial Forecast (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change （Actual） Previous (%) Forecast Forecast Revenue 3,713.7 3,860.0 - 146.2 3.9 Excl. Impact of restructuring 3,675.0 3,860.0 - 184.9 5.0 Impact of restructuring 38.6 - - -38.6 - Adjusted Operating Profit 320.8 340.0
Slide 21: 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 22: Cash Flows
Cash Flows (Billions of yen) Change vs. FY2022 FY2023 Previous (Actual) (Forecast) Forecast Free Cash Flow 177.5 170.0 - [ Core Free Cash Flow ] [157.1] [225.0] - 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
Financial Results Consolidated PL (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q Revenue 818.8 886.4 931.4 1,077.0 3,713.7 799.6 Adjusted Operating Profit 28.0 46.7 76.9 169.0 320.8 2.6 [Adjusted Operating Profit Margin] [3.4%] [5.3%] [8.3%] [15.7%] [8.6%] [0.3%] Adjusted items from GAAP Opera
Slide 27: 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 Operating Profit 25.6 75.3 72.3 162.3 335.6 -1.6 Adjusted items from GAAP Operating Profit -2.4 28.5 -4.6 -6.7 14.7 -4.2 One-time Profit/Loss from business transfers - 32.2 0.3 - 32.6 - M
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 Service Revenue 445.6 459.5 481.4 597.6 1,984.2 465.4 Solutions Adj. Operating Profit 9.0 10.0 35.4 108.5 162.9 20.9 Global Revenue 93.8 90.3 95.6 127.4 407.2 104.2 Solutions Adj. Operating
Slide 29: Fujitsu Uvance
Financial Results Fujitsu Uvance (Billions of yen) 1Q 1Q FY2022 FY2023 Change (％) (％) FY2022 FY2023 (Actual) (Forecast) Vertical 6.1 13.2 7.1 216% 30.0 110.0 Orders Horizontal 48.3 59.7 11.4 124% 220.0 250.0 Total 54.4 72.9 18.5 134% 250.0 360.0 144% [Japan] [29.8] [43.3] [13.5] [145%] [120.0] [170.
Slide 30: Breakdown of Regions (International)
Financial Results Breakdown of Regions (International) (Billions of yen) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q Revenue 130.0 133.5 150.9 167.1 581.7 141.0 Regions (International) Adj. Operating Profit -1.8 -1.4 -2.0 15.6 10.3 -3.6 Revenue 84.9 89.3 99.0 123.1 396.4 96.8 Europe Adj. Operating Profit -3.
Slide 31: Financial Forecast
Earnings Forecast Financial Forecast (Billions of yen) FY2023(Forecast) FY2022 Change vs. Current Change （Actual） Previous (%) Forecast Forecast Revenue 3,713.7 3,860.0 - 146.2 3.9 Excl. Impact of restructuring 3,675.0 3,860.0 - 184.9 5.0 Impact of restructuring 38.6 - - -38.6 - Adjusted Operating P
Slide 32: 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 33: 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 1Q Change vs. Fluctuation (Actual) 2Q/3Q/4Q Previous 2Q/3Q/4Q (Actual) (Forecast) Forecast (Forecast)* U.S. dollar / Yen 135 137 130 - -0.8 Billion yen Eur
Slide 34: 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) 1Q Full year Change vs. FY2022 FY2023 FY2022 FY2023 Previous (Actual) (Actual) (Actual) (Forecast) Forecast Service Solutions 7.2 4.8 27.8 23.0 - Hardware