Business and Other Risks - Customers

2. Customers

A large proportion of our technology solutions and other businesses is with public institutions such as the Japanese, local and foreign governments; telecommunications carriers; financial services institutions; manufacturers; distribution; and healthcare industries. While the Group is watching closely the market trends, technological trends, and changes in the customer's situation, business environment within these industries, including shifting market trends and structural reforms, could lead to changes in customers’ ICT investment trends, having a significant impact on Group sales and profitability. In addition, the trends in sales of our customers’ products and/or services, such as soft demand, falling prices for customers’ products and/or services, reductions in the size of customers’ businesses, customers’ reduced market share, and/or restraints on customers’ ICT investments, have a large impact on the demand for and prices of the Group’s products and/or services.

In our business outside Japan, for example, projects related to the government of each country are particularly important part of our business. Accordingly, changes and restraints placed on the ICT investment plans of the government could impact the Group’s sales and profitability.

The novel coronavirus COVID-19 pandemic has had a major impact on customers in a variety of industries around the world. This is expected to restrain customers' ICT investments and could have an impact on the Group's sales and earnings. At the same time, there is a growing movement toward a new normal world (new conditions and common sense) after the COVID-19 crisis has been resolved. New demand may emerge from customers to realize this. We would like to play a role in building a new way of life around people and data by leveraging our experience, understanding, and digital technologies in a variety of industries.

The Fujitsu Group is creating long-lasting ties with its customers and striving to be a valued and trusted business partner by providing solutions across the full ICT system lifecycle, so maintaining trusted relationships with customers is important for the Group’s business stability. However, an inability to maintain trusted relationships with such customers, or the failure to renew contracts with them, could affect the Group’s sales and profitability.

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