Fujitsu : FY 2021 First Quarter Financial Results

July 29, 2021

FY 2021 First Quarter Financial Results

April 1, 2021 - June 30, 2021

Fujitsu Limited

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Fujitsu Limited Public and Investor Relations Division

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Consolidated Financial Results for the First-QuarterEnded June 30, 2021[Prepared on the basis of International Financial Reporting Standards]

		July 29, 2021
Company name	:	Fujitsu Limited
Stock exchange listings	:	Tokyo, Nagoya
Code number:	:	6702
URL:	:	https://www.fujitsu.com/global/
Representative:	: Takahito Tokita, President and Representative Director
Contact person:	:	Kunihiko Nomoto,
		Head of Public and Investor Relations Division
		Tel. [phone]
Scheduled filing date of statutory financial report:	:	August 3, 2021
Scheduled dividend payment date:	:	-
Supplementary material:	:	Yes
Financial results meeting:	: Yes (for media and analysts)

1. Consolidated Results for the First-Quarter Ended June 30, 2021

(Monetary amounts are rounded to the nearest million yen.)

(1) Consolidated financial results

(The percentage figures represent the percentage of increase or decrease against the same period of the previous year.)

(Millions of yen)

	Revenue	Operating profit	Profit before income	Profit for the period
		Change (%)		Change (%)	taxes	Change (%)		Change (%)
1Q FY 2021	801,980	-0.1	33,739	51.5	39,595	52.6	29,538	54.2
(4/1/21-6/30/21)
1Q FY 2020	802,793	-4.3	22,273	558.0	25,951	314.4	19,152	244.0
(4/1/20-6/30/20)
	Profit for the period attributable	Total comprehensive income for
	to owners of	Change (%)	the period	Change (%)
	the parent
1Q FY 2021	24,165	33.0	43,901	183.5
(4/1/21-6/30/21)
1Q FY 2020	18,176	156.2	15,487	-
(4/1/20-6/30/20)
		(Yen)
	Earnings per share
	Basic	Diluted
1Q FY 2021	121.60	121.47
(4/1/21-6/30/21)
1Q FY 2020	90.77	90.72
(4/1/20-6/30/20)

(2) Consolidated financial position

(Millions of yen)

			Equity	Equity
	Total assets	Total equity	attributable to	attributable to
	owners of the	owners of the
			parent	parent ratio (%)
June 30, 2021	3,033,844	1,559,585	1,458,821	48.1%
March 31, 2021	3,190,206	1,546,905	1,450,139	45.5%

2. Dividends per Share (Ordinary Shares)

							(Yen)
				Dividends per share
		1Q		2Q	3Q	Year-end	Full year
FY2020	-	100.00	-	100.00	200.00
FY2021	-
FY2021(Forecast)			110.00	-	110.00	220.00

Note: Revision of the latest consolidated earnings forecast: No

3. Consolidated Earnings Forecast for FY2021

(The percentage figures represent the percentage of increase or decrease against the previous year.)

(Millions of yen, except per share data)

	Revenue	Operating profit	Profit for the year attributable	Basic
		Change (%)		Change (%)	to owners of	Change (%)	earnings per
			the parent	share
FY2021	3,630,000	1.1	275,000	3.3	205,000	1.1	1,032.63

Note: Revision of the latest consolidated earnings forecast: No

4. Other Information

(1) Significant changes to subsidiaries in the current reporting period

(Changes to specified subsidiaries resulting from changes in scope of consolidation): No

1. Changes in accounting policies and accounting estimates

1. Changes in accounting policies required by IFRS: None
2. Changes arising from factors other than 1: None
3. Changes in accounting estimates: None

1. Number of issued shares (ordinary shares)

1.	Number of issued shares	As of June 30, 2021	207,001,821
	at end of period	As of March 31, 2021	207,001,821
2.	Treasury stock held	As of June 30, 2021	8,550,597
	at end of period	As of March 31, 2021	8,002,339
3.	Average number of shares	1Q FY 2021	198,733,117
	during period	1Q FY 2020	200,246,583

Notes

1. This financial report is not subject to quarterly review
2. Precautions on usage of earnings projections

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 or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors listed below.

- General economic and market conditions in key markets

(Particularly in Japan, Europe, NorthAmerica, Oceania, and Asia, including China)

• Fluctuations in exchange rates or interest rates
• Fluctuations in capital markets
• Intensifying price competition
• Changes in market positioning due to competition in R&D
• Changes in the environment for the procurement of parts and components
• Changes in competitive relationships due to collaborations, alliances and technical provisions
• Risks related to public regulations, public policy and tax matters
• Risks related to product or services defects
• Potential emergence of unprofitable projects
• Risks related to R&D investments, capital expenditures, business acquisitions, business restructuring, etc.
• Risks related to natural disasters and unforeseen events
• Changes in accounting policies

For information regarding the assumptions used to prepare these projections, please refer to the supplemental explanation materials (Presentation Material).

Financial Tables

1. Consolidated Statement of Financial Position

				(Millions of yen)
	Notes	FY2020		1Q FY2021
		(As of March 31, 2021)		(As of June 30, 2021)
Assets
Current assets
Cash and cash equivalents		481,832	576,466
Trade receivables		859,930	487,181
Other receivables		48,769	49,215
Inventories		237,013	273,818
Others		233,333	306,540
Subtotal		1,860,877		1,693,220
Assets held for sale		12,215	4,309
Total current assets		1,873,092		1,697,529
Non-current assets
Property, plant and equipment, net of accumulated depreciation		569,593	588,266
Goodwill		41,239	42,422
Intangible assets		120,459	121,323
Investments accounted for using the equity method		154,396	157,048
Other investments		176,891	186,351
Deferred tax assets		76,661	65,057
Others		177,875	175,848
Total non-current assets		1,317,114		1,336,315
Total assets		3,190,206	3,033,844
Liabilities and equity
Liabilities
Current liabilities
Trade payables		468,139	388,762
Other payables		358,425	274,063
Short-term borrowings, current portion of long-term debt		174,268	150,722
and lease obligations
Accrued income taxes		32,183	14,682
Provisions		60,680	52,374
Others		194,757	234,796
Subtotal		1,288,452		1,115,399
Liabilities directly associated with assets held for sale		1,045	1,999
Total current liabilities		1,289,497		1,117,398
Non-current liabilities
Long-term debt and lease obligations		142,057	162,286
Retirement benefit liabilities		149,994	132,635
Provisions		26,615	24,942
Deferred tax liabilities		8,451	11,100
Others		26,687	25,898
Total non-current liabilities		353,804		356,861
Total liabilities		1,643,301		1,474,259
Equity
Share capital		324,625	324,625
Capital surplus		241,254	241,471
Treasury stock, at cost		-79,495	-89,595
Retained earnings		909,139	926,786
Other components of equity		54,616		55,534
Total equity attributable to owners of the parent		1,450,139	1,458,821
Non-controlling interests		96,766	100,764
Total equity		1,546,905		1,559,585
Total liabilities and equity		3,190,206	3,033,844

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2.Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement of Comprehensive Income

【First-Quarter Condensed Consolidated Statement of Profit or Loss】	(Millions of yen, except per share data)
		1Q FY2020		1Q FY2021
	Notes	(For the three-month		(For the three-month
		ended June 30, 2020)		ended June 30, 2021)
	Revenue	802,793	801,980
	Cost of sales	-578,933	-555,979
	Gross profit	223,860		246,001
	Selling, general and administrative expenses	-202,600	-214,152
	Other income	4,900	5,662
	Other expenses	-3,887		-3,772
	Operating profit	22,273	33,739
	Financial income	3,213	2,898
	Financial expenses	-1,091	-784
	Income from investments accounted for using the equity method, net	1,556	3,742
	Profit for the period before income taxes	25,951		39,595
	Income tax expenses	-6,799		-10,057
	Profit for the period	19,152	29,538
Profit for the period attributable to:
	Owners of the parent	18,176	24,165
	Non-controlling interests	976		5,373
	Total	19,152	29,538
	Earning per share
	Basic earnings per share (Yen)	90.77	121.60
	Diluted earnings per share (Yen)	90.72	121.47
【First-Quarter Condensed Consolidated Statement of Comprehensive Income】		(Millions of yen)
		1Q FY2020		1Q FY2021
	Notes	(For the three-month		(For the three-month
		ended June 30, 2020)		ended June 30, 2021)
	Profit for the period	19,152	29,538
	Other comprehensive income
	Items that will not be reclassified to profit or loss

Financial assets measured at fair value through other comprehensive income

Remeasurement of defined benefit plans

Share of other comprehensive income of investments accounted for using the equity method

Items that may be reclassified subsequently to profit or loss

Foreign currency translation adjustments

Cash flow hedges

Share of other comprehensive income of investments accounted for using the equity method

7,096	6,438
-14,103	7,278
81	40
-6,926		13,756
2,167	249
-22	202
1,116	156
3,261		607

Total other comprehensive income for the period, net of taxes

Total comprehensive income for the period Total comprehensive income attributable to:

Owners of the parent Non-controlling interests Total

-3,665	14,363
15,487	43,901
14,285	38,358
1,202		5,543
15,487	43,901

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