Representative Director, Corporate Vice President, CFO, Fujitsu Limited
Fujitsu Medium-Term Management Plan Progress update and FY2023 Consolidated Financial Results
Presenter: Takahito Tokita, Representative Director, CEO Takeshi Isobe, Representative Director, Corporate Vice President, CFO ...
Transcript (2 segments)
P
Presenter0:01
I would like to explain our company progress in FY23, the status of our major initiatives, and targets for FY24 under the medium-term management plan announced in May 2023. The Fujitsu Group's purpose is to make the world more sustainable by building trust and society through innovation. We have established a vision for 2030 to be a technology company that realizes net positive through digital services. We are focusing on four key strategies: business model and portfolio, customer success and regional, technology, and people. In FY23, consolidated revenue was 3.756 trillion yen, up 2.2%, and Service Solutions revenue grew approximately 10% to 2.137 trillion yen. Adjusted operating profit decreased 11.6% to 283.15 billion yen, but Service Solutions adjusted operating profit increased 45.5% to 237.55 billion yen. Non-financial indicators are progressing smoothly. Key strategic initiatives include business model transformation with Fujitsu Uvance, which saw sales of 367.8 billion yen, up 84%. We are also focusing on modernization and improving international profitability. For FY24, we target consolidated revenue of 3.76 trillion yen, adjusted operating profit of 330 billion yen, and Service Solutions revenue of 2.23 trillion yen with adjusted operating profit of 280 billion yen. That concludes my update. Thank you very much. Next, Mr. Isobe will present the FY23 financial results.
T
Takeshi Isobe15:13
This is Isobe, CFO. I would like to give a presentation on the FY23 consolidated financial results. Service Solutions had strong revenue and operating profit. Revenue was 2.137 trillion yen, up 9.9% excluding PFU restructuring. Adjusted operating profit was 237.1 billion yen, up 74.2 billion yen year-on-year, with margin improving to 11.1%. Total consolidated revenue was 3.756 trillion yen, up 2.2%. Profit for the year was 244 billion yen, a record high for the second consecutive year. I will discuss each segment. Service Solutions orders in Japan remain solid, up 16%. International orders were mixed. Fujitsu Uvance revenue increased 84% to 367.9 billion yen, exceeding the target of 300 billion yen. Profitability improvements from delivery transformation and value-based pricing resulted in a 2% gross margin improvement. Growth investments increased by 21.4 billion yen. We are advancing transformation initiatives including carving out the German private cloud business, exiting low-margin regions, and reorganizing European subsidiaries. In hardware, we launched FSAS Technologies Inc. and reformed cost structures. For device solutions, we plan to sell Shinko Electric Industries. The total impact of adjusted items on profit was an increase of 18.6 billion yen. Cash flow: core cash flow was 199.7 billion yen, free cash flow was 151.9 billion yen. For FY24, we forecast revenue of 3.76 trillion yen, adjusted operating profit of 330 billion yen, and adjusted profit of 226 billion yen. Service Solutions revenue is projected at 2.23 trillion yen, up 4%, with adjusted operating profit of 280 billion yen. We plan growth investments of 700 billion yen over the medium-term plan and shareholder returns of 600 billion yen, including 230 billion yen in FY24. Dividends will increase for the ninth consecutive year. This concludes my presentation.