Fujitsu : Overview

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Fujitsu

at a Glance

The Fujitsu Group has established a global service structure with operations in six regions including Japan.

Fujitsu's IT services business ranks top by market share in Japan and in the top tier world- wide, a record that reflects our outstanding technologies and long track record in building large-scale,cutting-edge systems.

Notes:

NWE (Northern & Western Europe): the United Kingdom, Finland, Sweden, Denmark, Norway, Spain, Portugal, France, Belgium, Luxembourg and the Netherlands

CEE (Central & Eastern Europe): Germany, Austria, Switzerland, Poland and Russia

Americas: the United States, Canada, Brazil, Mexico, etc.

Others: Europe excluding NWE and CEE, the Middle East and Africa

Revenue by Region (Fiscal year ended March 31, 2021)

	Oceania
	2.1%
	Asia				Others
	7.4%
Americas				1.0%
4.8%
CEE	Revenue
7.0%
¥3,589.7 billion
NWE	Operating Profit
¥266.3 billion
10.4%	Japan

67.3%

Consolidated Number of Employees (As of March 31, 2021)

(Thousands of people)

	Oceania
Asia	3
16
Americas
4
CEE
8	126,371 people
NWE	Japan
15
81

Fujitsu Group

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Fujitsu's Position in the IT Services Market

Global Services Revenue
(Billions of US dollars)
60
	48.3
		39.8
40			34.0
20				18.6	17.2
0	IBM	Accenture	Deloitte	DXC	Fujitsu

Notes: 1. Revenue estimate using calendar year, based on IDC's services market definition. US dollar basis

2. Ranking by vendors' revenue in 2019 Source: IDC Japan, April 2021 (JPJ47534821)

Japan IT Services Revenue

(Billions of yen)

1,500
	1,199.0
1,000		945.8	930.8	889.8
					678.8
500
0	Fujitsu	NTT Data	Hitachi	NEC	IBM

Note: Consolidated revenue estimate using calendar year, based on IDC's services market definition

Source: IDC Japan, July 2021 (JPJ47045321)

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Fujitsu Group Overview

Fujitsu at a Glance

Fujitsu Group

Integrated Report

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Business Segments

Technology Solutions

Main Products/Services/Regions

Solutions/Services

System integration (system implementation, business application services, etc.)

Consulting

Outsourcing services (datacenter services, ICT managed services, application managed services, business process outsourcing, etc.)

Cloud services (IaaS, PaaS, SaaS, etc.)

Network services (business networks, etc.)

System support services

(ICT system and network maintenance and monitoring services, etc.) Security solutions

Software (middleware)

System Platforms

System Products

Servers (mainframes, UNIX servers, mission critical IA servers, PC servers)

Storage systems

Front end technology (ATMs, POS systems, etc.)

Software (OS)

Automotive control units and in-vehicle information systems

Network Products

Network management systems

Optical transmission systems

Mobile base stations

International Regions Excluding Japan

Solutions/Services delivery and System Products sales in regions outside Japan

Technology Solutions (Common)

Common expenses related to Technology Solutions (basic research and development expenses and others)

Elimination of sales/profit/loss between subsegments Corporate subsidiaries

Ubiquitous Solutions

Main Products/Services

PCs

Device Solutions

Main Products/Services

Electronic components (semiconductor packages, batteries, etc.)

Intersegment Elimination

Elimination of intersegment sales

Performance by Segment

Revenue

(Billions of yen)

5,000		Device Solutions

		Ubiquitous Solutions
4,000		Technology Solutions
3,000		(International Regions)
	Technology Solutions
2,000		(System Platforms)
	Technology Solutions
1,000		(Solutions/Services)
		Technology Solutions (Common)
0		Intersegment Elimination
-1,000	2020	2021 (Fiscal years ended March 31)
Operating Profit
(Billions of yen)
400		Device Solutions
		Ubiquitous Solutions
300		Technology Solutions
		(International Regions)
200		Technology Solutions
	(System Platforms)
100		Technology Solutions
	(Solutions/Services)
0		Technology Solutions (Common)
-100	2020	2021 (Fiscal years ended March 31)

Technology Solutions

(Year on year)

Revenue	Down 5.3%
Operating Profit	Up 0.3%
Operating Profit Margin	Up 0.4 percentage point

HOME Fujitsu Group Overview Fujitsu Update: Current Status of Changes Targeting Value Creation

Fujitsu Update: Current Status of Changes Targeting Value Creation

Through the transformation of its business model, the Fujitsu Group has taken bold steps to evolve considerably from the company it was just several years ago.

Recent results demonstrate the success of these ef forts to date, with Fujitsu achieving operating profit of more than ¥200 billion for two consecutive years and record-high operating profit and net profit attributable to owners of the parent in fiscal 2020 (the year ended March 31, 2021). We will continue to accelerate our transformation ef forts to achieve medium- to long-term growth.

Fujitsu Group

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Pursuing a new organization and human resources to create new value

To promote shifts in the Group's employ-

ee mindsets and organizational culture,

we are building a new human resources

and organizational management frame-

work appropriate for this "new normal"

era. We will lead the transformation of

our customers through example, further

promoting DX internally with data-driven

management and strengthening the

ranks of people who can spearhead our

DX initiatives, making our own transfor-

Revising the Fujitsu Way with Our Purpose as its pillar

In 2020, we clarified Fujitsu's Purpose and revised the Fujitsu Way, which defines the principles of behavior of all Fujitsu Group employees, for the first time in 12 years. We are pursuing value creation unique to the Fujitsu Group by addressing the challenges of global society and enhancing empathy with the voices of global citizens.

Reorganizing Group formation to accelerate transformation

To accelerate business model transformation and strengthen competitiveness, we have established new subsidiaries including Fujitsu Japan and Ridgelinez, streamlined system integration subsidiaries and research centers, and consolidated the Fujitsu Group's delivery functions. We are rebuilding our global business strategy around a six-region structure comprising Japan, Asia, Northern & Western Europe (NWE), Central & Eastern Europe (CEE), the Americas, and Oceania.

mation a guiding light for others.

Earning the trust of stakeholders by acting as a responsible global company

Through Global Responsible Business (GRB), a platform for promoting sustainability activities, we are striving to earn the trust of our stakeholders by fulfilling our responsibilities as a global company and promoting initiatives that contribute to solving social issues.

Transforming the business model from an electronic equipment and IT company to a DX company

We have spun off or sold our PC, smartphone, and semiconductor businesses to concentrate management resources on our IT services business. We are shifting our business model to reinforce our position as a leading DX company that supports the digital transformation of our customers.

Continuously strengthening governance structure to enhance corporate value

We are working to constantly strengthen our structure to promote effective governance that meets the expectations of our shareholders. Measures we have taken included ensuring diversity on the Board of Directors, appointing an independent director as chairman of the Board of Direc- tors, and forming the Board of Directors with independent directors as a majority.

HOME Fujitsu Group Overview Value Creation ModelFujitsu GroupIntegrated Report06

Value Creation Model We in the Fujitsu Group are committed to providing value to society driven by Our Purpose, starting with social trends.

Social Trends	1	An era of uncertainty	2	Agreement of global goals	3	Expectations of companies	4	Expectations of Fujitsu
Threat of new coronavirus infection	SDGs / Paris Agreement (COP)	Stakeholder capitalism	Digital transformation

Input

Fiscal 2020 results

Financial capital

• Revenue	¥3,589.7 billion
• Operating profit margin	7.4%

Non-financial capital

Human capital

• Ratio of female employees

(non-consolidated)18.2%

• Percentage of female managers

(non-consolidated)7.4%

• Annual cost of education*

¥114.8 thousand/year per person

• Fiscal 2019 results, Fujitsu and domestic Group companies

Natural capital

• GHG emissions 658 thousand tons

Intellectual capital

• R&D investment ¥113.8 billion

Our Purpose	Our Purpose is to make the world more sustainable
by building trust in society through innovation

Building new possibilities by connecting people, technology and ideas, creating a more sustainable world where anyone can advance their dreams

Vertical Areas	Sustainable	Consumer	Healthy	Trusted
	Manufacturing	Experience	Living	Society
Horizontal Areas
Digital Shifts	Business Applications	Hybrid IT

Global Responsible Business (GRB)

Human Rights,

Wellbeing

Environment

Compliance

Supply Chain

Health and

Community

Diversity & Inclusion

Safety

Outcome

Providing value to society

Providing human-centric values

Shareholders

Long-term improvement in corporate value

Customers

Customers' success and their sustainable growth

Employees

An environment that maximizes potential

Business partners

Coexistence and co-prosperity with business partners

Society

Act for needs of our planet first

Social & Relationship capital

• Community investment ¥1.1 billion

Manufactured capital

• Capital expenditure

¥87.5 billion

Output

Fiscal 2022 targets

Financial indicators	• Revenue	¥3,500.0 billion
• Operating profit margin	10%
	• Customer NPS®	(under preparation)
Non-financial indicators	• Employee engagement	75
	• DX Promotion Indices	3.5

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Board of Directors / Audit & Supervisory Board Members

Fujitsu Group

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Board of Directors / Audit & Supervisory Board Members

(Back row from left)	13 Hideo Makuta 10 Youichi Hirose 9 Kenichiro Sasae 2	Hidenori Furuta	3	Takeshi Isobe 7 Yoshiko Kojo 11 Megumi Yamamuro 12 Koji Hatsukawa
(Front row from left)	4 Masami Yamamoto 8 Scott Callon 1 Takahito Tokita	6 Atsushi Abe	5	Chiaki Mukai

1 Takahito Tokita

Representative Director

CEO, CDXO

2 Hidenori Furuta

Representative Director

COO, CDPO

3 Takeshi Isobe

Director

CFO

4 Masami Yamamoto

Director

Senior Advisor

5 Chiaki Mukai

Director*

6 Atsushi Abe

Director*

7 Yoshiko Kojo

Director*

8 Scott Callon

Director*

9 Kenichiro Sasae

Director*

10 Youichi Hirose

Audit & Supervisory

Board Member

11 Megumi Yamamuro

Audit & Supervisory

Board Member

12 Koji Hatsukawa

Audit & Supervisory

Board Member*

13 Hideo Makuta

Audit & Supervisory

Board Member*

• Independent directors and Audit & Supervisory Board members