Notice regarding changes in business segments
Tokyo, May 24, 2023
Fujitsu today announced partial changes to its business segment framework alongside its medium-term management goals, which include achieving net sales of 4.2 trillion yen and an operating income margin of 12% in fiscal 2025, with an eye toward the fulfillment of its purpose: “to make the world more sustainable by building trust in society through innovation.”
Fujitsu has decided to make these segment changes 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 aligns the current organizational structure with the segment classification for which information is disclosed.
Starting with the first quarter financial results for fiscal 2023, which are scheduled to be announced in July 2023, segment results will be reported in accordance with the new framework, including comparison figures for prior years.
Key changes to segments
Fujitsu will eliminate the “Technology Solutions” segment, create two new segments, and change the “Inter-segment Elimination/Corporate" segment.
1. Establishment of the “Service Solutions” segment
The hardware sales and hardware maintenance services were separated from the sub-segments “Solutions/Services” and “International Regions Excluding Japan” included in “Technology Solutions,” and the name has been changed to “Service Solutions.”
The following three subsegments will be newly established:
- Global Solutions: Creating and providing global value services centered on Fujitsu Uvance
- Regions (Japan): Provision of services to the Japanese market (including implementation of Fujitsu Uvance)
- Regions (International): Provision of services in regions outside of Japan (including implementation of Fujitsu Uvance)
2. Establishment of the "Hardware Solutions" segment
The sub-segment "System Platforms" was consolidated with hardware sales and hardware maintenance services into the new segment "Hardware Solutions."
3. Changes in "Inter-segment Elimination/Corporate"
"Inter-segment Elimination/Corporate" refers to the following items included in the previous sub-segment "Technology Solutions (Common)": advanced R&D conducted by the Fujitsu Research Unit and other groupwide organizations that do not belong to any of the segments; investment in common business growth including in-house DX investment on a global group basis; sale and disposal of common assets; and elimination of intersegment sales.
Comparison of existing and new Segments
Types of products and services under the new segments
Revenues and operating profits for fiscal 2022 to 2023 arranged under new segment structure
Fujitsu’s purpose is to make the world more sustainable by building trust in society through innovation. As the digital transformation partner of choice for customers in over 100 countries, our 124,000 employees work to resolve some of the greatest challenges facing humanity. Our range of services and solutions draw on five key technologies: Computing, Networks, AI, Data & Security, and Converging Technologies, which we bring together to deliver sustainability transformation. Fujitsu Limited (TSE:6702) reported consolidated revenues of 3.7 trillion yen (US$28 billion) for the fiscal year ended March 31, 2023 and remains the top digital services company in Japan by market share. Find out more: www.fujitsu.com.
Public and Investor Relations Division
All company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.
Date: 24 May, 2023
City: Tokyo, Japan
Company: Fujitsu Limited