FUJITSU LIMITED Medium-Term Management Plan
Medium-Term Management Plan
Progress update
Takahito Tokita
CEO
Fujitsu Limited
© 2024 Fujitsu Limited
- Hello everyone. I am Tokita, CEO. Thank you very much for taking the time to join us today.
© 2024 Fujitsu Limited | 1 |
- Progress in FY2023
II
Agenda III
Progress and plans of major initiatives
Targets for FY2024
2 | © 2024 Fujitsu Limited |
- I would like to explain our Company progress in FY23, the status of how we are progressing against our major initiatives, and our targets for FY24 with respect to our Medium-Term Management Plan which I announced in May 2023.
© 2024 Fujitsu Limited | 2 |
3 | © 2024 Fujitsu Limited |
- First, I would like to start with the Fujitsu Group Purpose, which is to "make the world more sustainable by building trust in society through innovation." All of our corporate activities are designed to achieve this purpose, which gives meaning to our existence and what we aim to be.
© 2024 Fujitsu Limited | 3 |
Fujitsu Way
Aspiration
Innovation
Our Purpose
Making the
World more Building trust in society
sustainable
EmpathyTrust
Our Values
Code of Conduct
Three elements of the Fujitsu Way
Our | Our purpose is to make the world more | |
sustainable by building trust in society through | ||
Purpose | ||
innovation. | ||
Aspiration | • Set ambitious targets and act with agility. | |
• Embrace diversity and create original ideas. | ||
• Stay curious and learn from failures and experiences. | ||
• Deliver positive impact through human centric innovation. | ||
Our | Trust | • Honor promises and exceed expectations. |
• Act with ethics, transparency and integrity. | ||
Values | ||
• Work autonomously and unite for common goals. | ||
• Contribute to a trusted society using technology. | ||
Empathy | • Strive for customers' success and their sustainable growth. | |
• Listen to all people and act for the needs of our planet. | ||
• Work together to solve global challenges. | ||
• Generate shared value for our people, customers, partners, | ||
community and shareholders. | ||
• We respect human rights. | ||
• We comply with all laws and regulations. | ||
Code of | • We act with fairness in our business dealings. | |
Conduct | • We protect and respect intellectual property. | |
• We maintain confidentiality. | ||
• We do not use our position in our organization for personal gain. | ||
4 | © 2024 Fujitsu Limited |
- The Fujitsu Way, which all Fujitsu Group employees must abide by, sets out the three important values of aspiration, trust and empathy, as well as a code of conduct, which are all anchored in our purpose.
© 2024 Fujitsu Limited | 4 |
Value creation concept for 2030
Being a technology company that realizes net positive* through digital services
Net positive: - In addition to maximising financial returns, we are committed to solving global environment problems, developing a digital society and improving people's well-being. Technology and innovation will have a positive impact on society as a whole.
Input | Fujitsu's business activities |
Implementing key strategies based on sustainability |
Output / Outcomes
Financial capital
Human capital
Natural capital
Technology and intellectual capital
Global responsible business
Human rights Wellbeing Environment Compliance Supply chain Community and DE&I
Key strategies
Business model | Customer success / | |
and portfolio strategy Customer | Regional strategy | |
Technology strategy | Business | People strategy |
Technology | People | |
5 |
Financial indicators
Non-financial indicators Materiality
- Solving global environmental issues
- Developing a digital society
- Improving people's well-being
© 2024 Fujitsu Limited
- I would now like to explain our approach to value creation for 2030.
- We have established a vision for 2030, "Being a technology company that realizes net positive through digital services."
- Fujitsu's vision for achieving a net positive is defined as "Fujitsu, which exists in society, must address the materiality of solving global environmental problems, developing a digital society, and improving people's wellbeing, in addition to maximizing financial returns, and making a positive impact on society as a whole through technology and innovation".
- To realize this vision, we are focusing on four key strategies, which are: Business model and portfolio strategy, Customer success and Regional strategy, Technology strategy, and People strategy.
© 2024 Fujitsu Limited | 5 |
5 Corporate Vice Presidents
Takahito | Takeshi | Vivek | Yoshinami | Megumi | Shunsuke |
Tokita | Isobe | Mahajan | Takahashi | Shimazu | Onishi |
Representative Director, | Corporate Executive Officer, Corporate Executive Officer, Corporate Executive Officer, Corporate Executive Officer, | ||||
Representative Director, CEO | Corporate Vice President, | Corporate Vice President, | Corporate Vice President, | Corporate Vice President, | Corporate Vice President, |
CFO | CTO,CPO,System Platform | COO (Fujitsu Uvance) | COO (Service Delivery) | COO (Regions), CRO | |
6 | © 2024 Fujitsu Limited |
- This is the management structure in FY24. From this fiscal year, we have five Corporate Vice Presidents.
- From left to right are Isobe - CFO, Mahajan - Chief Technology Officer (CTO) and Chief Portfolio Officer (CPO), and Takahashi, Shimazu, and Onishi, - our three Chief Operating Officers (COO).
- Takahashi is responsible for expanding the Fujitsu Uvance business, Shimazu is responsible for building and strengthening the global service delivery structure, and Onishi is responsible for implementing global customer and regional strategies as COO and Chief Revenue Officer (CRO).
- This structure enables us to accelerate business decision making and execution in and across each business area.
© 2024 Fujitsu Limited | 6 |
- Progress in FY2023
7
- Next, I will explain our Company progress during FY23.
© 2024 Fujitsu Limited | 7 |
Medium-Term Management Plan
Progress status of financial performance indicators
The business portfolio is transforming as planned. Service Solutions which is our growth area, increased in both revenue and profit.
Consolidated
+2.2%
Revenue | 3,675.0* | 3,756.0 | ||||
(Billions of yen) | ||||||
FY22 (Results) | FY23(Results) | |||||
*Note: FY22 Revenue is excluding the impact of business restructuring | ||||||
Adjusted | -11.6% | |||||
320.8 | ||||||
Operating profit** | 283.6 | |||||
(Billions of yen) | [8.6%] | [7.6%] | ||||
[Operating profit margin (%)] | ||||||
FY22 (Results) | FY23(Results) |
**Note: Adjusted operating profit: Indicator which represents an actual profit from core business calculated by deducting profits from
business restructuring, M&A, etc, and one-off profits from changes in regulations. | 8 |
Service Solutions
+9.9%
1,945.5 2,137.5
FY22 (Results) FY23 (Results)
+45.5%
237.2
162.9 [11.1%]
[8.2%]
FY22 (Results) FY23 (Results)
© 2024 Fujitsu Limited
- Firstly, I will summarize the progress status of our financial performance indicators.
- In FY23, we started transforming our business portfolio, centering our efforts on Service Solutions as the pillar for growth.
- As a result, consolidated revenue in FY23 was 3,756 billion yen for Fujitsu as a whole, an increase of 2.2% from FY22. And Service Solutions revenue showed progressive growth, increasing by circa 10% from FY22, to 2,137.5 billion yen in FY23.
- Consolidated adjusted operating profit decreased 11.6% from the previous financial year to 283.6 billion yen, largely due to the impact of business restructuring in Europe and a decline in sales demand for networks and devices. We expect device sales to recover from FY24, and networks will remain at FY23 levels during FY24.
- As a result of our strategic initiatives, Service Solutions adjusted operating profit increased 45.5% year on year to 237.2 billion yen in FY23.
© 2024 Fujitsu Limited | 8 |
Medium-Term Management Plan
Progress status of non-financial performance indicators
Each non-financial indicator is tracking in line with planned changes in our business model and portfolio.
Comparison reference | FY Results |
Environment
GHG emissions
(10,000 tons)
Fujitsu Group
Customer | Productivity | ||
Customer NPS* | Per capita productivity |
*Net Promoter Score | (Operating profit compared to FY22) |
(Compared to FY22) |
People
Employee engagement
75 |
- Scope 1,2 - (Compared to FY20) | ||
-44% | ||
-50% | ||
FY20 | FY23 | FY25 |
(Results) | (Results) | (Target) |
Supply chain
- Scope 3** - (Compared to FY20)
-31%
-12.5% | ||
FY20 | FY23 | FY25 |
(Results) (Results) (Target)
+7.7
FY22 FY23 FY25
(Results) (Results) (Target)
Consolidated
-11%
+40%
+20 | FY22 | FY23 | FY25 |
(Results) | (Results) | (Target) |
Service Solutions
Exceeded +40% | |
FY22 | FY23 |
(Results) | (Results) |
69 | 69 | ||
FY22 | FY23 | FY25 |
(Results) (Results) (Target)
Diversity leadership
(Percentage of female managers)
20% | ||
15% | 16% | |
FY22 | FY23 | FY25 |
(Results) | (Results) | (Target) |
**Category 11: CO2 emissions due to product power consumption only
9
© 2024 Fujitsu Limited
- Next is the progress status of our non-financial performance indicators.
- Fujitsu has set non-financial targets in the four categories of: environment, customer, productivity, and people.
- Generally, our performance has been smoothly progressing - there are three areas I will give more details on.
- Firstly, we have significantly reduced our Scope 3 greenhouse gas emissions, shown at the bottom of the environment metrics on the far left of the slide, ahead of the -12.5% target set for FY25 (which was baselined against emission volumes in FY20). A decline in network product sales contributed to this temporary sharp drop and we will still hold to the set target for FY25.
- Secondly, third from the left on the slide, is productivity per person, which has declined due to an overall reduction in Company operating income. However, in Service Solutions, our Company's growth area, productivity has increased by more than 40% compared to FY22.
- Finally, on the top right-hand side of the slide, we report the employee engagement score which remains the same as the previous year. Of the issues employees raised in the internal survey, those that are relatively easy to address have mostly been dealt with, and we are now tackling more complex issues. It will take a period of time between the issues being addressed and for employees to provide updated feedback, however we do then expect the scores to improve.
© 2024 Fujitsu Limited | 9 |
- Progress and plans of major initiatives
10
- Next, I would like to give more detail on how we are progressing in the key strategic focus areas I mentioned earlier.
© 2024 Fujitsu Limited | 10 |
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Fujitsu Ltd. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 14:38:03 UTC.
