Fujitsu Services

Fujitsu Services posts record financial results

47% increase in profit before tax , record order book achieved of £6.5bn

26th June 2006 — Fujitsu Services Holdings PLC, one of Europe’s leading IT services companies, today announced its financial results for 2005/06. The company made an operating profit before rationalisation of £153.7 million and a profit before tax of £154.3 million in the year ended 31 March 2006, an increase of 47% from 2004/05. The company’s order book has grown to £6.5 billion. These numbers reflect International Financial Reporting Standards and comparisons are on a like for like basis. (Please see details below)

David Courtley, CEO commented, “I am delighted with the financial results for 2005/06. It proved an excellent year for Fujitsu Services with total revenues of £2,293.7 million, an increase of 16% from 2004/05. I believe it is our emphasis on continually looking at ways to deliver better services to our customers that has been responsible for the improved performance and revenue growth in both our government and commercial businesses.

He continued: “The year saw many significant contracts come through, including the e-HR programme for the Northern Ireland Civil Service and the Northern Ireland Office, the extension to the HMRC ASPIRE contract and the outsourced desktop service agreement with LloydsTSB. Our business in mainland Europe have also been rewarded, especially in the financial services and retail sectors, with new contracts being signed with the Spanish-based bank La Caixa and Auchan the France-based retail group.

During the previous financial year the Board took the decision that Fujitsu Services would adopt International Financial Reporting Standards and International Accounting. Standards as adopted by the European Union (collectively IFRS) on 1 April 2005. As such 2005/06 are the first results prepared according to IFRS, with 2004/05 results and balances sheets at 31 March 2004 and 31 March 2005 also being restated for IFRS.

The impact of IFRS for Fujitsu Services relates mainly to revenue recognition on long-term contracts and pension fund accounting. Revenues of £191 million and associated margins which would have been recognised in 2005/06 and subsequent years under UK GAAP have been recognised in earlier years under IFRS.

In addition Fujitsu Services liability in respect of the defined benefit pension schemes it operates has been brought on balance sheet under IAS19. Full details of the Group’s transition to IFRS can be found in the full financial statements of Fujitsu Services Holdings PLC.

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Fujitsu Services

Fujitsu Services is one of the leading IT services companies in Europe, Middle East and Africa. It has an annual turnover of £2.29 billion; (€3.33 billion) employs almost 18,000 people and operates in over 20 countries. It designs, builds and operates IT systems and services for customers in the financial services, telecom, retail, utilities and government markets. Its core strength is the delivery of IT infrastructure management and outsourcing across desktop, networking and data centre environments, together with a full range of related services, from infrastructure consulting through integration and deployment.

Headquartered in London, Fujitsu Services is the European-centred IT services arm of the Fujitsu Group. The Fujitsu Group is a US$40.6 billion (€33.4 billion) leader in the provision of IT systems and services for the global marketplace.
For more information, please see: uk.fujitsu.com

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