Business and Other Risks
4. Investment Decisions and Business Restructuring
In the ICT industry, large investments in R&D, capital expenditure, transfer and acquisition of business, and business restructuring are necessary to maintain competitiveness. The Fujitsu Group is carrying out essential countermeasures, and the success or failure of these initiatives has a profound effect on the business results of the Fujitsu Group. When making such investment and/or restructuring decisions, we give ample consideration to a range of factors such as market trends, customer needs, the advantages in the Group’s own technologies, the financial performance of acquisition candidates and our business portfolio.
However, there is the risk that markets, technologies, and acquisition candidates that appear attractive to the Group, may fail to grow as anticipated, or that supply and demand imbalances or price erosion may be more severe than expected.
In order to mitigate the risks of such investments, the Group additionally takes a number of countermeasures (i.e; Dividing investment into multiple phases by considering investment efficiency, and/or forging agreements with customers prior to investment), but there is no guarantee that the Group can generate sufficient returns on such investments.