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Business and Other Risks

2. Customers

A large proportion of our technology solutions and other businesses are with the public institutions such as the Japanese national and local governments, foreign governments, telecommunications carriers, financial services institutions, and large manufacturers. The 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 services, such as weak demand, falling prices for customers’ products or services, decline 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, government related projects in the UK are an especially important part of our business. Accordingly, changes and restraints placed on the ICT investment plans of the UK government could impact the Group’s sales and profitability.

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 stability of the Group’s business . However, an inability to maintain trusted relationships with such customers, or the failure to renew contracts with them, could therefore affect the Group’s sales and profitability.