Notice of Changes to Business Segments
Fujitsu Limited
Tokyo, July 28, 2020
The Fujitsu Group recently announced its guiding set of principles under the banner of a newly-established corporate Purpose-"to make the world more sustainable by building trust in society through innovation." (1). While reaffirming and strengthening its commitment to corporate responsibility and the resolution of social and environmental challenges, Fujitsu also continues to embrace its new identity as a DX Company that contributes to its customers' digital transformations(2) as a leading player in this rapidly growing domain. To this end, Fujitsu has established a medium-term management goal of achieving revenue of ¥3.5 trillion and an operating profit margin of 10% in fiscal 2022, taking into account "Technology Solutions," which composes its core business, along with "Others/Eliminations/Corporate".
Fujitsu has decided to make some segment changes in order to more clearly demonstrate its progress toward the achievement of its medium-term goals and to more closely reflect the perspective of the management approach that corresponds to the organizational structure with the segment for disclosure.
As of the announcement of the first quarter results for fiscal 2020 (Scheduled for July 30, 2020), segment information will be disclosed under these new segments, including for prior years.
Key Changes to Segments
1. Revise segments (Transfer "Others/Eliminations/Corporate" into "Technology Solutions")
For "Others/Eliminations/Corporate," company-wide common expenses were separated into the "Technology Solutions (Common)" subsegment and elimination of inter-segment sales was separated into the new " Inter-segment Elimination " segment. As a result, the Company will henceforth be divided into three segments, "Technology Solutions," "Ubiquitous Solutions," and "Device Solutions," as well as " Inter-segment Elimination ," which will consist of elimination of inter-segment sales only.
In addition, in order to clarify the responsibility for investment recovery, Fujitsu changed the attribution of common company-wide expenses, such as upfront investment expenses, which had been collected in "Others/Eliminations/Corporate," to include them in each sub-segment of "Technology Solutions."
2. Establishment of the "International Regions Excluding Japan" Subsegment
The international businesses included in "Services" and "System Platforms" under "Technology Solutions" have been separated and integrated into the newly-established "International Regions Excluding Japan" subsegment. At the same time, the name of the "Services" subsegment has been changed to "Solutions/Services."
3. Segment changes such as organizational changes
Certain segments were reclassified in accordance with organizational changes and changes in the management structure of subsidiaries.
For details, refer to the chart titled "Types of Products and Services under the New Segments."
Comparison of Old and New Segments
Types of Products and Services under the New Segments
Revenues and Operating Profits for Fiscal 2018 to 2019 Arranged Under New Segment Structure
Please refer to attachment. (120 KB/20200728.xls)
About Fujitsu
Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 130,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE:6702) reported consolidated revenues of 3.9 trillion yen (US$35 billion) for the fiscal year ended March 31, 2020. For more information, please see www.fujitsu.com.
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Date: 28 July, 2020
City: Tokyo
Company:
Fujitsu Limited