Management Direction

1. Basic Management Policy

Through its constant pursuit of innovation, the Fujitsu Group aims to contribute to the creation of a networked society that is rewarding and secure, bringing about a prosperous future that fulfills the dreams of people throughout the world. To achieve this vision, the Fujitsu Group strives for sustainable profit and growth, while continually enhancing its corporate value.

2. Medium- to Long-Term Corporate Management Strategy and Priority Tasks

Based on this recognition, having set performance targets, such as an consolidated operating profit margin of at least 10%, since fiscal 2015, the Fujitsu Group has been promoting “Business Structure Transformation” to sharpen its focus on the core business and “Growth Strategy Transformation.” As the Group was able to achieve gratifying results with regard to initiatives for “Business Structure Transformation” by strengthening principal businesses in Device Solutions and Ubiquitous Solutions as independent operations, the Group will sharpen its focus on initiatives for “Growth Strategy Transformation.” Aiming to achieve growth in the core Technology Solutions business, the Group will promote the following three measures.

First, the Company will implement sales reforms to further increase the market share in Japan, the Company’s main market. Regarding the more than 10,000 salespeople in Japan who are dispersed at Fujitsu Group companies, the optimum assignment will be considered from a Group-wide perspective and human resources will be shifted to priority fields.

Secondly, in order to establish a more resilient business structure, the Group will promote globally unified product development, deeper alliances with leading partners in the world, offering of speedy services attuned to the characteristics of markets around the world, and gaining and fostering of globally competitive human resources.

Thirdly, in order to create a new global structure, the Group will strengthen marketing functions in each region and speedily reflect information gathered throughout the world in the global sales strategy and business strategy. Optimization of the organizational structure of Group companies will also be addressed in order to eliminate duplication of functions and dispersion of resources.

In order to facilitate these initiatives for “Growth Strategy Transformation,” Fujitsu revised its management structure in fiscal 2018. Business groups have been consolidated as the “Technology Solutions” segment to simplify the line of command and create synergy, transcending the previous organizational framework. As a result of this change, Fujitsu will target an consolidated operating profit margin of at least 10% for Technology Solutions. Regarding the business outside Japan, rather that pursuing the scale of revenue, priority will be accorded to establishing a more robust revenue structure with the aim of offering greater value to customers. To this end, in the EMEIA region, the Group will terminate manufacturing functions and concentrate on sales functions, while at the same time closing unprofitable sites that are highly dependent on the product business and concentrate management resources on sites with a strong customer base.

In fiscal 2019, Fujitsu will promote these three measures. While continuing investments for growth in the digital era to maintain global competitiveness, the Group will also promote vigorous transformation.

Based on the recognition that establishment and operation of the internal control framework including the compliance system is one of the most important management matters from the viewpoint of maintaining and enhancing corporate value, the Fujitsu Group is working to ensure compliance, adhering to the Code of Conduct included in the FUJITSU Way. Having also positioned the further strengthening of initiatives about compliance as an issue to be addressed, the Fujitsu Group will continue these initiatives.

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