Business and Other Risks
4. Investment Decisions and Business Restructuring
In the ICT industry, large investments in R&D, capital expenditure, business acquisitions, and business restructuring are necessary to maintain competitiveness. The Fujitsu Group is carrying out essential measures, 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 restructuring decisions, we give ample consideration to a range of factors such as market trends, customer needs, the advanteges of 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, which may be thought of as attractive by the Group, may fail to grow as anticipated, or that supply and demand imbalances or price erosion may be more severe than expected.
Also, in order to mitigate the risks of such investments, the Group takes a number of countermeasures such as dividing investments into multiple phases by considering investment efficiency, and forging agreements with customers prior to investments.There is, however, no guarantee that the Group can generate sufficient returns on such investments.