Fujitsu : FY 2020 Full-Year Financial Results

April 28, 2021

FY 2020 FULL-YEARFINANCIAL RESULTS

April 1, 2020 - March 31, 2021

Fujitsu Limited

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Consolidated Financial Results for the full year Ended March 31, 2021[Prepared on the basis of International Financial Reporting Standards]

									April 28, 2021
Company name				:	Fujitsu Limited
Stock exchange listings			:	Tokyo, Nagoya
Code number				:	6702
URL				:	http://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 annual shareholders'meeting date		:	June 28, 2021
Scheduled dividend payment date		:	June 7, 2021
Scheduled filing date of statutory financial report	:	June 28, 2021
Supplementary material			:	Yes
Financial results meeting			: Yes (for media and analysts)
1. Consolidated Results for the Full-Year Ended March 31, 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 previous year.)
									(Millions of yen)
	Revenue	Operating profit	Profit before income	Profit for the year
		Change (%)		Change (%)	taxes		Change (%)		Change (%)
FY 2020	3,589,702	-6.9	266,324		25.9	291,855		27.7	213,523		33.2
(4/1/20-3/31/21)
FY 2019	3,857,797	-2.4	211,483		62.4	228,564		41.3	160,326		44.8
(4/1/19-3/31/20)
	Profit for the year attributable	Total comprehensive income for
	to owners of	Change (%)	the year	Change (%)
	the parent
FY 2020	202,700	26.7	277,091		62.7
(4/1/20-3/31/21)
FY 2019	160,042	53.1	170,306		78.3
(4/1/19-3/31/20)
	Earnings per share(Yen)	Return on Equity	Ratio of Profit before	Ratio of Operating Profit
			Attributable to Owners of	Income Taxes to Total	to Revenue (%)
	Basic	Diluted	the Parent (%)		Assets (%)
FY 2020	1,013.78	1,012.63	15.1		9.2	7.4
(4/1/20-3/31/21)
FY 2019	791.20	790.76	13.5		7.1	5.5
(4/1/19-3/31/20)
[Reference] Income from investments accounted for using the equity method: FY2020: 15,326 million yen	FY2019: 14,794 million yen
(2) Consolidated financial position
			(Millions of yen, except per share data)
			Equity		Equity
			attributable to	attributable to	Equity per Share
	Total assets	Total equity	Attributable to
	owners of the	owners of the
			Owners of the Parent
			parent	parent ratio (%)
March 31, 2021	3,190,206	1,546,905	1,450,139		45.5%	7,287.15
March 31, 2020	3,187,455	1,348,435	1,240,956		38.9%	6,197.11
(3) Consolidated Cash Flows
			(Millions of yen)
	Cash Flows	Cash Flows	Cash Flows	Cash and
	from	from		Cash
	from Financing
	Operating	Investing	Equivalents at
	Activities
	Activities	Activities	End of Year
FY 2020	307,947	-71,561	-219,626		481,833
(4/1/20-3/31/21)
FY 2019	347,263	-114,206	-193,164		453,036
(4/1/19-3/31/20)

2. Dividends per Share (Ordinary Shares)

			Dividends per share(Yen)		Total Amount of	Dividend Payout	Ratio of Dividends to
				Dividends (Millions
	1Q		2Q	3Q	Year-end	Full year	of yen)	Ratio (%)	Net Assets (%)
FY2019		-	80.00	-	100.00	180.00	36,240	22.8	3.1
FY2020		-	100.00	-	100.00	200.00	39,927	19.7	3.0
FY2021(Forecast)		-	110.00	-	110.00	220.00		21.4

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	1,030.15

The effect of the purchase of treasury stock decided at Board of Directors Meeting held on April 28, 2021 is not included in the calculation of "Basic earnings per share".

4. Other Information

(1) Significant changes to subsidiaries in the current fiscal year

(Changes to specified subsidiaries resulting from changes in scope of consolidation): None

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 March 31, 2021	207,001,821
	at end of period	As of March 31, 2020	207,001,821
2.	Treasury stock held	As of March 31, 2021	8,002,339
	at end of period	As of March 31, 2020	6,754,157
3.	Average number of shares	Full-Year FY 2020	199,945,412
	during period	Full-Year FY 2019	202,277,589

(Reference Information) Summary of FY2020 Full-Year Separate Financial Results

(Monetary amounts less than one million yen are rounded down.)

Separate Results for the Full-Year Ended March 31, 2021

(1) Separate Financial Results

(Millions of yen)

	Net Sales	Operating Income	Ordinary income	Net Income(Loss)
		Change (%)		Change (%)		Change (%)		Change (%)
FY 2020	1,970,684	-5.8	106,376	- 5.2	143,367	- 20.9	158,121	-13.2
(4/1/20-3/31/21)
FY 2019	2,092,098	8.3	112,189	531.6	181,342	-	182,198	292.9
(4/1/19-3/31/20)
		(Yen)
	Net Income (Loss) per
	Common Share-Basic
FY 2020		790.82
(4/1/20-3/31/21)
FY 2019		900.73
(4/1/19-3/31/20)

(2) Separate Financial Position

(Millions of yen, except per share data)

	Total assets	Net Assets	Owners' Equity	Net Assets per
	Ratio (%)	Share
March 31, 2021	1,950,670	1,030,919	52.8	5,180.51
March 31, 2020	1,941,581	903,662	46.5	4,512.72

[Reference] Owners' Equity: March 31, 2021; 1,030,919 million yen March 31, 2020; 903,662 million yen

Notes

1. This financial report is not subject to audits by certified public accountants or auditing corporations.
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, North America, 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	FY2019		FY2020
		(As of March 31, 2020)		(As of March 31, 2021)
Assets
Current assets
Cash and cash equivalents		451,857	481,832
Trade receivables		879,454	859,930
Other receivables		93,428	48,769
Inventories		238,070	237,013
Others		214,130		233,333
Subtotal		1,876,939	1,860,877
Assets held for sale		14,182		12,215
Total current assets		1,891,121	1,873,092
Non-current assets
Property, plant and equipment, net of accumulated depreciation		570,170	569,593
Goodwill		36,709	41,239
Intangible assets		107,213	120,459
Investments accounted for using the equity method		150,719	154,396
Other investments		131,765	176,891
Deferred tax assets		106,636	76,661
Others		193,112		177,875
Total non-current assets		1,296,324		1,317,114
Total assets		3,187,445	3,190,206
Liabilities and equity
Liabilities
Current liabilities
Trade payables		478,970	468,139
Other payables		390,917	358,425
Short-term borrowings, current portion of long-term debt		199,450	174,268
and lease obligations
Accrued income taxes		50,652	32,183
Provisions		51,769	60,680
Others		192,767		194,757
Subtotal		1,364,525	1,288,452
Liabilities directly associated with assets held for sale		1,083		1,045
Total current liabilities		1,365,608	1,289,497
Non-current liabilities
Long-term debt and lease obligations		206,119	142,057
Retirement benefit liabilities		190,353	149,994
Provisions		30,652	26,615
Deferred tax liabilities		10,370	8,451
Others		35,908		26,687
Total non-current liabilities		473,402		353,804
Total liabilities		1,839,010	1,643,301
Equity
Share capital		324,625	324,625
Capital surplus		237,654	241,254
Treasury stock, at cost		-59,614	-79,495
Retained earnings		735,920	909,139
Other components of equity		2,371		54,616
Total equity attributable to owners of the parent		1,240,956	1,450,139
Non-controlling interests		107,479		96,766
Total equity		1,348,435		1,546,905
Total liabilities and equity		3,187,445	3,190,206

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

【Full-Year Consolidated Statement of Profit or Loss】		(Millions of yen, except per share data)
			FY2019		FY2020
		Notes	(For the full-year		(For the full-year
		ended March 31,		ended March 31,
			2020)	2021)
	Revenue		3,857,797	3,589,702
	Cost of sales		-2,748,479		-2,509,454
	Gross profit		1,109,318	1,080,248
	Selling, general and administrative expenses		-864,685	-834,519
	Other income		19,258	46,748
	Other expenses		-52,408		-26,153
	Operating profit		211,483	266,324
	Financial income		7,381	14,200
	Financial expenses		-5,094	-3,995
	Income from investments accounted for using the equity method, net		14,794		15,326
	Profit for the year before income taxes		228,564	291,855
	Income tax expenses		-68,238		-78,332
	Profit for the year		160,326	213,523
Profit for the year attributable to:
	Owners of the parent		160,042	202,700
	Non-controlling interests		284		10,823
	Total		160,326	213,523
	Earning per share	5-3
	Basic earnings per share (Yen)		791.20	1,013.78
	Diluted earnings per share (Yen)		790.76	1,012.63
【Full-Year Consolidated Statement of Comprehensive Income】				(Millions of yen)
			FY2019		FY2020
		Notes	(For the full-year		(For the full-year
		ended March 31,		ended March 31,
			2020)	2021)
	Profit for the year		160,326	213,523
	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

Total other comprehensive income for the year, net of taxes

Total comprehensive income for the year

Total comprehensive income attributable to: Owners of the parent Non-controlling interests

Total

-5,737	30,994
31,246	7,804
-160	312
25,349	39,110
-13,455	22,022
20	-266
-1,934	2,702
-15,369		24,458
9,980	63,568
170,306	277,091
171,361	264,945
-1,055		12,146
170,306	277,091

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3. Consolidated Statement of Changes in Equity

														(Millions of yen)
				Equity attributable to owners of the parent
	Notes	Share		Capital		Treasury		Retained		Other				Non-
				stock,			components		Total		controlling		Total equity
		capital		surplus			earnings
				at cost			of equity				interests
Balance at April 1, 2019
	324,625	235,455	-29,556	576,857	24,674	1,132,055	121,575	1,253,630
Profit for the year							160,042			160,042	284	160,326
Other comprehensive income									11,319	11,319	-1,339	9,980
Total comprehensive income
	－		－		－	160,042	11,319	171,361	-1,055	170,306
for the year
Purchase of treasury stock			-12	-30,101					-30,113			-30,113
Disposal of treasury stock					3					3			3
Share-based payment			529	40					569			569
transactions
Dividends paid							-32,429			-32,429	-2,900	-35,329
Transfer to retained earnings							33,586	-33,586		－				－
Acquisition (disposal) of			-502							-502	323	-179
non-controlling interests
Changes in ownership			-187			222	-35		－	-10,650	-10,650
interests in subsidiaries
Others			2,371			-2,358	-1	12	186	198
Balance at March 31, 2020
	324,625	237,654	-59,614	735,920	2,371	1,240,956	107,479	1,348,435
Profit for the year							202,700			202,700	10,823	213,523
Other comprehensive income									62,245	62,245	1,323	63,568
Total comprehensive
	－		－		－	202,700	62,245	264,945	12,146	277,091
income for the year
Purchase of treasury stock					-20,141					-20,141			-20,141
Disposal of treasury stock			1	3					4			4
Share-based payment			1,284	257					1,541			1,541
transactions
Dividends paid							-40,052			-40,052	-2,489	-42,541
Transfer to retained earnings							9,996	-9,996		－				－
Acquisition (disposal) of			3,064							3,064	-20,810	-17,746
non-controlling interests
Changes in ownership			27			-23	-4		－	442	442
interests in subsidiaries
Others			-776			598			-178	-2	-180
Balance at March 31, 2021
	324,625	241,254	-79,495	909,139	54,616	1,450,139	96,766	1,546,905

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4. Consolidated Statements of Cash Flows

			(Millions of yen)
	FY2019		FY2020
Notes (For the full-year ended		(For the full-year ended
	March 31, 2020)		March 31, 2021)
Cash flows from operating activities
Profit for the year before income taxes	228,564	291,855
Depreciation, amortization and impairment loss	214,037	175,828
Increase (decrease) in provisions	-25,241	-1,252
Increase (decrease) in net defined benefit liability	-33,173	-31,822
Interest and dividend income	-5,304	-3,783
Interest charges	4,185	3,047
Income from investments accounted for using the equity method, net	-14,794	-15,326
(Gain) loss on sales of subsidiaries' stock	-6,350	-26,645
(Increase) decrease in trade receivables	10,867	27,804
(Increase) decrease in inventories	-19,076	3,511
Increase (decrease) in trade payables	-41,348	-18,215
Other, net	46,720	-15,800
Cash generated from operations
359,087	389,202
Interest received	2,300	1,238
Dividends received	5,024	4,424
Interest paid	-4,222	-3,128
Income taxes paid	-14,926	-83,789
Net cash provided by operating activities
347,263	307,947
Cash flows from investing activities
Purchases of property , plant, equipment, and intangible assets	-132,970	-128,771
Proceeds from sales of investment securities	19,133	9,343
Net proceeds from sale of subsidiaries and business	40,522	42,743
Collection of loans receivable	1,863	12,189
Decrease (increase) in short-term investment	-33,758	-4,577
Other, net	-8,996	-2,488
Net cash used in investing activities
-114,206	-71,561
Cash flows from financing activities
Increase (decrease) in short-term borrowings	18,589	7,840
Proceeds from long-term debt and issuance of bonds	3	545
Repayment of long-term debt and bonds	-80,249	-80,373
Payment of lease obligation	-69,673	-68,103
Purchase of treasury stock	-30,101	-20,141
Dividends paid to owners of the parent	-32,429	-40,052
Acquisition of non-controlling interests	－	-17,577
Other, net	696	-1,765
Net cash used in financing activities
-193,164		-219,626
Net increase (decrease) in cash and cash equivalents	39,893	16,760
Cash and cash equivalents at beginning of year	416,742	453,036
Effect of exchange rate changes on cash and cash equivalents	-3,599	12,037
Cash and cash equivalents at end of year	453,036	481,833

― 4 ―

1. Notes to Financial Statements

1. Cautionary Note Regarding Assumptions of a Going Concern

None.

2. Segment Information

Please refer to the supplemental explanation materials (Presentation Material).

3. Earnings per Share

Calculation basis for basic earnings per share and diluted earnings per share

Basic Earnings per Share

		FY2019	FY2020
		(For full-year ended	(For full-year ended
		March 31, 2020)	March 31, 2021)
Profit for the year, attributable to ordinary	Millions of yen	160,042	202,700
equity holders of the parent
Weighted average number of ordinary	Thousands of share	202,277	199,945
shares - basic
Earnings per shares	yen	791.20	1,013.78
Diluted Earnings per Share
		FY2019	FY2020
		(For full-year ended	(For full-year ended
		March 31, 2020)	March 31, 2021)
Profit for the year, attributable to ordinary	Millions of yen	160,042	202,700
equity holders of the parent
Adjustment related to dilutive
securities issued by subsidiaries and	Millions of yen	－	－
affiliates
Profit used to calculate diluted earnings	Millions of yen	160,042	202,700
per share
Weighted average number of ordinary	Thousands of share	202,277	199,945
shares - basic
Contingently issuable shares	Thousands of share	114	226
Weighted average number of ordinary	Thousands of share	202,391	200,171
shares - diluted
Diluted earnings per share	yen	790.76	1,012.63

4. Major Subsequent Events

None.

Basic Approach to the Selection of Accounting Standards

As of fiscal 2014 Fujitsu has adopted International Financial Reporting Standards (IFRS) for the preparation of consolidated financial statements, for the purpose of having a single, uniform accounting standard for Group companies and improving comparability of the company's financial information in the world's capital markets.

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