Fujitsu : Interim Report On First-Half FY 2022 Financial Results

TRANSLATION

Interim Report on FY2022 (123rd Business Period)

(Six months ended September 30, 2022)

Fujitsu Limited

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Note:

This English version of Interim Report on FY2022 (123rd Business Period) is a translation for reference only.

(TRANSLATION FOR REFERENCE ONLY)

To Our Shareholders

Fujitsu has set out Our Purpose "to make the world more sustainable by building trust in society through innovation." During the first half of fiscal 2022, we have been taking steps to enhance the sustainability of society and the Fujitsu Group underpinned by Our Purpose by placing focus on providing value creation to our customers and society and by achieving self-transformation, which has involved our Fujitsu Uvance business brand unveiled in fiscal 2021. Going forward, we will encourage new challenges extending beyond existing frameworks through pursuit of Our Purpose, thereby seeking to create value that only the Group can provide.

We would like to ask for the continued support and encouragement from all shareholders.

November 2022

Takahito Tokita, Representative Director and CEO

Highlights

• Summary of FY 2022 First-HalfConsolidated Results (Billion Yen)

	1H FY 2021	1H FY 2022
Revenue	1,663.0	1,705.3
Operating Profit	81.4	100.9
Profit for the Period	52.9	71.9
Free Cash Flow	104.0	47.2

• FY 2022 Full-Year Consolidated Forecast (Billion Yen)

	FY 2021	FY 2022 Forecast
Revenue	3,586.8	3,720.0
Operating Profit	219.2	400.0
Profit for the Period	182.6	280.0
Free Cash Flow	189.0	280.0

* In this report, profit for the period attributable to owners of the parent is presented as "Profit for the Period."

• Results for First Half of FY 2022

Revenue for the first half of fiscal 2022 increased by 42.3 billion yen year on year due to sales growth in the Technology Solutions segment, in addition to strong sales of electronic components in the Device Solutions segment, despite the impact of lower revenue due to component supply delays caused by the semiconductor shortage.

Operating profit overall increased by 19.4 billion yen year on year, due to the increased profit resulting from the increased revenue in the Technology Solutions and Device Solutions segments, the effect of DX human resource initiatives implemented in the previous fiscal year, and the progress of the improvement of profitability through productivity improvements as planned, in addition to the recording of one-time gains from the business transfer. This was despite the negative impact on profit from component supply delays, and aggressive expansion of investments for business growth and our own transformation. For details of the results for the first half of fiscal 2022, please refer to the Overview by Business Segment on Pages 3 to 4.

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Shareholder Returns

We will increase the interim dividend by 10 yen per share from the previous year's interim dividend to 120 yen per share, as planned.

Moreover, we plan to repurchase our own shares valued at up to a maximum of 150.0 billion yen during this fiscal year. With regard to future shareholder returns, we will expand overall shareholder returns by actively repurchasing our own shares with an eye on our capital efficiency, in addition to stable dividends, in accordance with Fujitsu's Capital Allocation Policy.

Dividend per share (Yen)

	C Year-end		Interim						240
250							(Forecast)
200										220
						200
				180				120
						110
								(Forecast)
150				150
					100

100

100	110	80
90

50	60					120
			100	110
50			70	80
40	50
0
FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022

• Dividends from fiscal 2016 through the interim period of fiscal 2018 are converted on the basis of the share consolidation implemented on October 1, 2018.

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(TRANSLATION FOR REFERENCE ONLY)

Overview by Business Segment

Technology Solutions

Revenue in the Technology Solutions segment increased overall as revenue increased for SI/Services of Solutions/Services and in the International Regions Excluding Japan, making up for the revenue decline due to component supply delays.

Revenue in the Solutions/Services increased mainly in manufacturing and finance businesses of SI/Services, but overall revenue declined due to the impact of component supply delays on business selling solutions and hardware together.

Revenue in the System Platforms increased due to an increase in materials caused by recovery from the effects of component supply delays.

Revenue in the International Regions Excluding Japan increased mainly in the Asia Pacific Region.

Operating profit was affected by expanded investments for growth, component supply delays, and an increase in procurement costs that was due to exchange rate fluctuations. However, in addition to the aforementioned revenue growth effect, profitability improved due to cost efficiency improvements and the effect of DX human resource initiatives, as well as one-time gains from the business transfer, resulting in an increase in operating profit year on year.

(Billion yen)		Revenue Breakdown	Operating Profit Breakdown
	1H FY 2021	1H FY 2022	1H FY 2021	1H FY 2022
Solutions/Services		845.4	815.6	56.6	63.6
System Platforms		286.7	301.0	15.8	8.9
International Regions Excluding Japan	346.6	370.3	5.1	(9.0)
Common		(65.9)	(61.6)	(36.4)	(11.0)
						(Billion yen)
		Revenue		Operating Profit	Operating Profit Margin

1,412.81,425.3

52.4

41.1

1H FY 2021

1H FY 2022

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Ubiquitous Solutions

Revenue in the Ubiquitous Solutions segment decreased due to the impact of component supply delays. Operating profit decreased year on year due to higher procurement costs caused by exchange rate fluctuations both in Japan and outside of Japan.

(Billion yen)

Revenue		Operating Profit	Operating Profit Margin

116.6110.2

5.0

1H FY 2021

1H FY 2022

(4.2 )

Device Solutions

Revenue in the Device Solutions segment increased due to increased sales of electronic components in the wake of continued global semiconductor demand. Operating profit increased significantly year on year due to the effect of increased revenue of electronic components and exchange rate fluctuations.

(Billion yen)

Revenue

Operating Profit

Operating Profit Margin

207.6 52.8

175.2

35.2

1H FY 2021

1H FY 2022

• For details, please refer to "FY 2022 First-Half Financial Results" available on the Fujitsu website at: https://www.fujitsu.com/global/about/ir/data/results/

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