富士通（6702） – Supplementary material for FY 2021 Full-Year Financial Results

FY2021Consolidated Financial ResultsApril 28, 2022Fujitsu LimitedCopyright 2022 FUJITSU LIMITEDFY21 Financial HighlightsResults SummaryOperating profit, excluding special items, was 275.6 billion yen (an operating profit margin of 7.7%), an increase of more than 10% vs LYIncoming Orders (Services-related, vs LY): Japan +3%, NWE +9%, CEE +3%, Americas +19%Gross Margin:31.2%, an improvement of 1.1% vs LY123Strategic Growth InvestmentsFY2020 40.0 billion yen -> FY2021 85.0 billion yen, a significant increaseHuman Resource Measures to Accelerate Transformation into a DX CompanyAs part of a series of measures to help employees shape their careers and to put the appropriate people in the appropriate roles, we are expanding the program to support those taking on the challenge of a new career outside of the Fujitsu Group65.0 billion yen was recorded as a one-time expense in FY20212Copyright 2022 FUJITSU LIMITEDContents１．Financial Results for FY2021２．Earnings Forecast for FY20223Copyright 2022 FUJITSU LIMITED１．Financial Results for FY20214Copyright 2022 FUJITSU LIMITED1.Financial Resultsfor FY2021Consolidated PL5Copyright 2022 FUJITSU LIMITED(Billions of yen)(％)3,589.7 3,586.8 -2.8 -0.1 -43.1 Impact ofrestructuring *135.1 – -35.1 – – [Excl. restructuring]3,554.5 3,586.8 32.3 0.9 -43.1 247.3 275.6 28.2 11.4 0.6 [6.9%] [7.7%] [0.8%] [0.1%] – – – – – 18.9 -56.4 -75.4 – 8.5 3,589.7 3,586.8 -2.8 -0.1 -43.1 266.3 219.2 -47.1 -17.7 9.2 [7.4%] [6.1%] [-1.3%] [0.3%] 202.7 182.6 -20.0 -9.9 22.6 *1 Restructured businesses: low profitability countries in Europe, product business in North America, mobile phone retail store business.*2 One-time Profit/Loss from restructuring and business transfers、purchase price allocation relating to M&A*3 Profit for the Year Attributable to Owners of the Parent FY2020(Actual)FY2021(Actual)ChangeChangevs.Mar forecastExcl. Special itemsSpecial items(One-time Profit/Loss) *2TotalRevenueRevenueOPPL[Operating Profit Margin]OPPLRevenueOPPL[Operating Profit Margin]PAT *31.Financial Resultsfor FY2021Factors Behind Change in Operating ProfitExcl. special items･ Revenue -2.8 ･Operating Profit +28.2(Billions of yen)Special Items for FY21(DX Human resource initiatives -65.0)(Transfer of Business and others +8.5)-56.4Special Items in FY20that did not recur in FY21 -18.9266.3Growth Investment-38.0Excl. special items275.6special items-56.4special items-18.9Increase in profit due to increased revenue+29.1(increased revenue +75.1)Costs/Expense Efficiency +68.1(Profitability improvements+36.7)(Expense Efficiency +31.3)Impact of globalchip shortage-31.0(Decrease in revenue-78.0)219.2FY20206FY2021Copyright 2022 FUJITSU LIMITED1.Financial Resultsfor FY2021Revenue by Segments(Excl. restructuring)7Copyright 2022 FUJITSU LIMITED(Billions of yen)Excl. restructuring3,554.5 3,586.8 32.3 -78.0 Technology Solutions3,071.7 3,056.3 -15.3 -68.1 Solutions/Services1,883.6 1,840.5 -43.1 -35.3 System Platforms633.7 617.5 -16.2 -25.8 System Products432.6 384.7 -47.9 -22.1 Network Products201.1 232.8 31.6 -3.6 International Regions Excluding Japan707.6 729.3 21.7 -23.3 Common-153.3 -131.0 22.2 16.4 Ubiquitous Solutions299.9 237.1 -62.8 -9.9 Device Solutions293.8 375.9 82.1 – Inter-segment Elimination-110.9 -82.6 28.3 – FY2021（Actual）ChangeFY2020（Actual）Impact ofglobal chipshortage1.Financial Resultsfor FY2021Overall Orders in Japan (Fujitsu Limited and Fujitsu Japan Limited)8Copyright 2022 FUJITSU LIMITED1Q2Q3QTotal91% 101% 101% 102% 99% [102%] 109% 95% 105% 104% 103% [109%] 91% 120% 89% 91% 96% [105%] 93% 91% 88% 87% 90% [92%] Total93% 102% 95% 95% 97% ［SI / Services］[98%] [109%] [106%] [101%] [103%] ［PC］[73%] [71%] [87%] [79%] [77%] ［Server / Network and Others］[93%] [89%] [70%] [84%] [83%] Japan Region［Government &Social infrastructure & Others］Finance＆RetailFujitsu Japan[Local government & Healthcare & Educational institutions &Small and medium enterprise]Private Enterprise[Manufacturing & Distribution]FY2021(Actual)[SI /Services]4Q1.Financial Resultsfor FY2021Overall Orders in International RegionsExcluding Japan9Copyright 2022 FUJITSU LIMITED1Q2Q3Q4QTotalNWE103% 95% 64% 137% 97% Services108% 88% 80% 156% 109% Products93% 120% 42% 89% 71% CEE127% 115% 87% 79% 99% Services120% 123% 96% 83% 103% Products129% 112% 84% 78% 98% Americas [Services]94% 118% 155% 112% 119% Asia133% 117% 111% 123% 121% Oceania102% 71% 94% 73% 83% FY2021(Actual)1.Financial Resultsfor FY2021Costs/Expense Efficiency 10Copyright 2022 FUJITSU LIMITEDGross Margin(Ratio)：+36.7 billion yen, +31.2%(+1.1% vs LY)・Solutions & Services…Changes in System development, delivery and support operations(Agile development, Japan Global Gateway, remote maintenance)・System Platforms…Improved relative to the previous year, due to decline in supercomputersrelative to last year・International region excludnig Japan…Secured major services contracts Improvements due to progress in structural transformation in North America・Device Solutions…Ongoing operational improvements due to increased overall demandled to a major increaseExpense Efficiency ：+31.3 billion yen… Development efficiency, effects of workstyle transformation, sale of idle facilities, etc.(OPEX excluding growth investments, and other income and expenses）Total29.1%30.1%31.2%・Trends in gross margin ratioFY2019FY2020FY20211.Financial Resultsfor FY2021Growth Investments11Copyright 2022 FUJITSU LIMITEDGrowth Investments : 85.0 billion yen, +45.0 billion yen vs LYMajor ItemsMajor Effects in FY2021・Cost efficiency improvements due to expanded use of offshoring9.0Japan Global Gateway, enhanced GDCs・Increased sales and profits from global offerings:(cid:9)9.0 Sales growth due to enhanced offerings・Increased efficiency of expenses due to Work Life Shift2.0 Borderless office optimizationsTotal20.0・Investments for value creationGlobal offering development, service delivery transformation(Japan Global Gateway, GDC enhancements)New business creation (6G, smart cities, next-generation processors)Business Producer transformation・Investments forour owntransformationInternal DX investments (One Fujitsu), Work Life ShiftFY2020FY2021vs LYInvestments for value creation31.035.04.0Investments for our owntransformation9.050.041.0Total40.085.045.0(OPEX）(15.0)(53.0)(38.0)(CAPEX）(25.0)(32.0)(7.0)1.Financial Resultsfor FY2021Global Chip Shortage12Copyright 2022 FUJITSU LIMITEDImpact of the global chip shortage: Revenue -78.0 billion yen, Profit -31.0 billion yen・Impacts from the global delays in supplies of components based on semiconductors continued in the fourth quarter1. Impact on sales delays・Solutions & Services-35.3 billion yen(Hardware-based business, scanners)・System Platforms-25.8 billion (x86 servers, etc.)・International Regions Excluding Japan-23.3 billion (x86 servers, etc.)2. Impacts of increased costs・Increased component procurement prices・Costs of design changes using substitute parts・Costs of air freight shipping3. Passing on costs in prices・Conducted price revisions primarily centered on component cost increases (Average 10% increase centered on increased costs for x86 servers and optional products)1.Financial Resultsfor FY2021Human resource initiatives bolster Fujitsu’s status as DX leader■Rolling out various human resource measures to accelerate transformation into aDX company with a sense of urgency1. Transformation into Business ProducersConducted reskilling/skill change training for all sales positions at Group companies in Japan, about 8,000 people total, in order to transform them from traditional salespeople to business producers responsible for creating business across industry boundaries2. Optimal allocation of personnel to ensure the appropriate person in the appropriate positionThe position-based HR system was applied to manager-level employees to ensure rapid personnel allocation, and Group-wide job postings were implemented to enable employees to take on the challenge of a different role internally at their own initiative (Results for FY2021: About 2,700 people)3. Expanded the Self-Producer Support System for a limited timeThe Self-Producer Support System for employees who want to take on the challenge of a new career outside the Fujitsu Group had been expanded for a limited time as a measure to accelerate the optimization of personnel allocation[Impact on Operating Profit/Loss]FY2021 -65.0 billion Special increase in retirement payments, as well as transition support servicesFY2022 +30.0 billion Impact of reduction in human resource expenses13Copyright 2022 FUJITSU LIMITED1.Financial Resultsfor FY2021Business Segment Information14Copyright 2022 FUJITSU LIMITED(Billions of yen)Excl.Special itemsSpecialitemsExcl.Special itemsSpecialitemsExcl.Special items[Intel Impactof global chipshortage]SpecialitemsRevenue3,087.7 3,087.7 – 3,056.3 3,056.3 – -31.3 -31.3 [-68.1]- OPPL193.2 200.6 -7.4 135.0 193.9 -58.9 -58.2 -6.7 [-30.6]-51.5 Revenue319.0 319.0 – 237.1 237.1 – -81.9 -81.9 [-9.9]- OPPL43.2 16.8 26.3 5.8 5.8 – -37.3 -10.9 [-0.4]-26.3 Revenue293.8 293.8 – 375.9 375.9 – 82.1 82.1 [-]- OPPL29.8 29.8 – 78.3 75.8 2.4 48.5 46.0 [-]2.4 Revenue-110.9 -110.9 – -82.6 -82.6 – 28.3 28.3 [-]- Revenue3,589.7 3,589.7 – 3,586.8 3,586.8 – -2.8 -2.8 [-78.0]- OPPL266.3 247.3 18.9 219.2 275.6 -56.4 -47.1 28.2 [-31.0]-75.4 Device SolutionsInter-segmentEliminationTotalTechnology SolutionsUbiquitousSolutionsFY2021（Actual）ChangeFY2020（Actual）1.Financial Resultsfor FY2021Business Segment Information[Revenue]Revenue was significantly impacted by component procurement delays. If this impact is excluded, revenue increased by 2%Excluding Special items(Increased volume(Component procurement delays(Restructuring -31.3 billion+52.7 billion)-68.1 billion)-16.0 billion)[Operating Profit] Profit improvements continued with the effects of increased revenue and improvements in business efficiency, but growth investments aimed at expanding DX and component procurement delays caused reduced profitsExcluding Special items(Increased volume/efficiency(Growth investments(Component procurement delaysSpecial Items-6.7 billion+61.9 billion)-38.0 billion)-30.6 billion)-51.5 billion15Copyright 2022 FUJITSU LIMITEDTechnology Solutions(Billions of yen)(%)3,087.7 3,056.3 -31.3 -1.0 193.2 135.0 -58.2 -30.2 [6.3%] [4.4%] [-1.9%] Revenue (breakdown)Japan2,237.6 2,131.2 -106.4 -4.8 Outside Japan850.1 925.1 75.0 8.8 ChangeTechnologySolutionsFY2020(Actual)FY2021(Actual)RevenueOperatingprofit[Operating profitmargin]1.Financial Resultsfor FY2021Business Segment Information[Revenue]Excluding the impact of component procurement delays, revenue was more or less in line with the previous yearHardware-based business continued to be weak, while services continued to be strongExcluding Special items(Volume decrease(Component supply delays-43.1 billion-7.8 billion)-35.3 billion)[Operating Profit] Profit improvements continued with greater efficiency in expenses and other profitability improvements, but profits fell due to growth investments in expanding DX and the impact of component procurement delaysExcluding Special items(Volume/efficiency(Growth investments(Component supply delaysSpecial items-4.4 billion+21.0 billion)- 17.0 billion)-8.4 billion)+2.5 billion16Copyright 2022 FUJITSU LIMITEDTechnology Solutions (Solutions/Services）(Billions of yen)(%)1,883.6 1,840.5 -43.1 -2.3 190.7 188.7 -1.9 -1.0 [10.1%] [10.3%] [0.2%] ChangeFY2020(Actual)FY2021(Actual)RevenueOperatingprofit[Operating profitmargin]Solutions/Services1.Financial Resultsfor FY2021Business Segment Information[Revenue](System Products)In addition to component supply delays, revenue fell due to supercomputer revenue recorded last year that did not recur this year(Network Products)Revenue rose significantly in North America[Operating Profit] (-) Component supply delays, impact of reduced revenue(+) Efficiency in expenses, profitability improvements, effects of increased revenue in Network ProductsExcluding Special items(Volume/efficiency(Component supply delaysSpecial items+12.3 billion+27.6 billion)-15.3 billion)+5.5 billion17Copyright 2022 FUJITSU LIMITEDTechnology Solutions (System Platforms)(Billions of yen)(%)633.7 617.5 -16.2 -2.6 SystemProducts432.6 384.7 -47.9 -11.1 NetworkProducts201.1 232.8 31.6 15.8 38.8 56.6 17.8 46.0 [6.1%] [9.2%] [3.1%] Revenue (breakdown)Japan505.3 416.5 -88.7 -17.6 Outside Japan128.4 200.9 72.5 56.5 Change[Operating profitmargin]SystemPlatformsFY2020(Actual)FY2021(Actual)RevenueOperatingprofit1.Financial Resultsfor FY2021Business Segment Information[Revenue]Revenue rose, due in part to the effects of the cheap yen on foreign exchange[Operating Profit] Profitability improvements are ongoing, and all regions are now in the black18Copyright 2022 FUJITSU LIMITEDTechnology Solutions（International Regions Excluding Japan）(Billions of yen)(%)723.7 729.3 5.6 0.8 11.6 23.9 12.3 106.2 [1.6%] [3.3%] [1.7%] Breakdown of OPPL in International Regions Excluding JapanNWE5.3 7.9 2.5 47.2 CEE5.4 7.5 2.0 37.6 Americas-5.4 0.6 6.1 0.0 Asia2.6 2.7 0.1 6.6 FY2020(Actual)FY2021(Actual)RevenueOperatingprofit[Operating profitmargin]InternationalRegionsExcluding JapanChange1.Financial Resultsfor FY2021Business Segment InformationActively Implementing Growth Investments Aimed at Transforming OurselvesActual results: 28.0 billion, up 22.0 billion vs LY•Internal DX investments aimed at achieving data-driven management (One Fujitsu, etc.)• Work Life Shift (transforming the ways we work)• Rethinking office environments• Building secure network environmentsRemote work is taking root at all locations, forms of work where employees don’t depend on their location are ongoingReallocation and renovation of facilities in Japan – Reduce the number of offices by 1/3 compared to March 2020Office floor space reduced by 20% compared to end of March 2020 -> optimization to around 50% by the end of FY2022Increased comfort, ensuring social distancing -> Office area per person expanded by a factor of 1.2Copyright 2022 FUJITSU LIMITED19Technology Solutions（Common）(Billions of yen)Excl. Special items-47.8 -70.0 -22.1 Special items- -64.3 -64.3 Operating profit-47.8 -134.4 -86.5 CommonChangeFY2021(Actual)FY2020(Actual)1.Financial Resultsfor FY2021Two Business Areas for Value Creation[Technology Solutions]20Copyright 2022 FUJITSU LIMITED(Billions of yen)ForGrowthForStabilityTotalForGrowthForStabilityTotalForGrowthForStabilityTotalGrowth Rate100% 98% 99% Revenue1,049.9 2,037.8 3,087.7 1,050.8 2,005.5 3,056.3 0.9 -32.2 -31.3 compositionratio[34%][66%][100%][34%][66%][100%]Growth Rate102% 94% 98% Revenue851.8 1,031.8 1,883.6 867.7 972.8 1,840.5 15.9 -59.0 -43.1 compositionratio[45%][55%][100%][47%][53%][100%]Growth Rate85% 102% 97% Revenue166.0 467.7 633.7 141.5 476.0 617.5 -24.5 8.3 -16.2 compositionratio[26%][74%][100%][23%][77%][100%]Growth Rate130% 99% 101% Revenue32.1 691.6 723.7 41.7 687.6 729.3 9.6 -4.0 5.6 compositionratio[4%][96%][100%][6%][94%][100%]CommonRevenue- -153.3 -153.3 – -131.0 -131.0 – 22.2 22.2 compositionratio[-%][100%][100%][-%][100%][100%]＊Technology SolutionsSolutions/ServicesCloud operation and maintenance services, which used to be classified as For Stability, have been reclassified as For Growth, and 61.0 billion yen of actual results in FY 2020have also been reclassified.SystemPlatformsInternational RegionsExcluding JapanFY2021 (Actual)ChangeFY2020 (Actual)1.Financial Resultsfor FY2021Business Segment Information[Revenue]Revenue fell relative to last year, due to the extraordinary demand last year relating to remote working and the GIGA School projectExcluding Special items(Reduced volume(Component supply delays(Restructuring-81.9 billion-52.9 billion)-9.9 billion)-19.1 billion)[Operating Profit] Operating profit fell by -25.4 billion yen vs LY because profits from the sale of businesses last year did not recur. In addition to that, operating profit also fell due to the negative impact of lower revenue.Excluding Special items(Reduced volume, etc.(Component supply delaysSpecial items-10.9 billion-10.5 billion)-0.4 billion)-26.3 billion21Copyright 2022 FUJITSU LIMITEDUbiquitous Solutions(Billions of yen)(%)319.0 237.1 -81.9 -25.7 43.2 5.8 -37.3 -86.4 [13.6%] [2.5%] [-11.1%] Revenue (breakdown)Japan209.0 129.6 -79.3 -38.0 Outside Japan109.9 107.4 -2.5 -2.3 ChangeRevenueOperatingprofit[Operating profitmargin]UbiquitousSolutionsFY2020(Actual)FY2021(Actual)1.Financial Resultsfor FY2021Business Segment Information[Revenue]The trend in revenue from electronic components continues to be strong in line with the rise in demand for semiconductors[Operating Profit]Significant increase in operating profit because of the impact of higher revenue and ongoing operational improvements22Copyright 2022 FUJITSU LIMITEDDevice Solutions(Billions of yen)(%)293.8 375.9 82.1 27.9 29.8 78.3 48.5 162.8 [10.1%] [20.8%] [10.7%] Revenue (breakdown)Japan75.8 87.0 11.1 14.7 Outside Japan217.9 288.9 70.9 32.6 RevenueOperatingprofit[Operating profitmargin]DeviceSolutionsFY2020(Actual)FY2021(Actual)Change1.Financial Resultsfor FY2021Cash FlowCash FlowStatementBase Cash Flow（Billions of yen）AllocationGrowthInvestmentShareholderReturnOthersFY20FY21vs LYFY20FY21FY20FY21FY20FY21FY20FY21Operating Cash Flow307.9248.3322.9301.3-15.0-53.0Investing Cash Flow-71.5-59.2-63.8-27.2-7.7-32.0Free Cash Flow236.3189.0259.1274.1-22.7-85.0－－－－－－－－－－－－Financing Cash Flow-219.6-193.6-68.1*1-62.3*1-17.3*2－-60.0-93.5-74.3-37.9-59.612.2-47.325.9*1 Payment of lease obligation*2 Purchase of Fujitsu Frontech shares191.0211.8-40.0-85.0-60.0-93.5-74.3-37.9（vs LY）（20.8）（-45.0）（-33.5）（36.4）◼ Base Cash Flow = FCF – Payment of lease obligations + Growth Investment211.8 billion yen (+20.8 billion yen vs LY) : Increased cash generating capacity due to increased profits in business◼ Growth Investment 85.0 billion yen (+45.0 billion yen vs LY) : Aggressive investment for value creation and internal transformation◼ Shareholder Return 93.5 billion yen (+33.5 billion yen vs LY) : Increase shareholder return in line with cash flow levels23Copyright 2022 FUJITSU LIMITED1.Financial Resultsfor FY2021Returns to Shareholders◼ Dividend : Stable and steady ◼ Share Repurchase: Expand flexiblyincrease in dividends50.0 billion yen（+30.0 billion vs LY）2,548,500 Shares◼ Total Payout AmountIncrease in dividends for 6 consecutive yearsYen90150110180200220FY16FY17FY18FY19FY20FY21* Including acquisition of shares not constituting a full unit24Copyright 2022 FUJITSU LIMITED(Billions of yen)FY2019（Actual）FY2020（Actual）FY2021（Actual）Dividends36.2 39.9 43.3 Share repurchase*30.1 20.1 50.1 Total payout amount66.3 60.0 93.5 Total payout ratio41%30%51%FY2019（Actual）FY2020（Actual）FY2021（Actual）End of First Half80 Yen 100 Yen 110 Yen End of Fiscal Year100 Yen 100 Yen 110 Yen Annual180 Yen 200 Yen 220 Yen Per Share1.Financial Resultsfor FY2021Assets, Liabilities and Equity25Copyright 2022 FUJITSU LIMITED(Billions of yen)Year-endFY2020Year-endFY2021Change3,190.2 3,331.8 141.6 1,643.3 1,616.0 -27.2 1,546.9 1,715.7 168.8 Total Equity Attributable to Owners of the Parent1,450.1 1,590.7 140.5 Equity Attributable to Owners of the Parent Ratio (%)45.5 47.7 2.2 EPS Total Equity Total Assets Total Liabilities13.5%15.1%12.0%14.8%14.2%14.4%FY2019（Actual）FY2020（Actual）FY2021（Actual）ROEReturn on Equity Attributable to Owners of the ParentROE of the entire companyROE of Excl. Special items791.21,013.8924.2865.8952.81,108.9FY2019（Actual）FY2020（Actual）FY2021（Actual）EPS Earnings per share(Basic)EPS of the entire companyEPS of Excl. Special items(Yen)CAGR13.2％2． Earnings Forecast for FY202226Copyright 2022 FUJITSU LIMITED2.Earnings Forecastfor FY2022Financial Forecast27Copyright 2022 FUJITSU LIMITED(Billions of yen)(％)3,586.8 3,720.0 133.1 3.7 Impact ofrestructuring *180.0 – -80.0 – [Excl. restructuring]3,506.8 3,720.0 213.1 6.1 275.6 390.0 114.3 41.5 [7.7%] [10.5%] [2.8%] – – – – -56.4 10.0 66.4 – 3,586.8 3,720.0 133.1 3.7 219.2 400.0 180.7 82.5 [6.1%] [10.8%] [4.7%] 182.6 280.0 97.3 53.3 *1 Restructured businesses: PFU: Figures from 2Q to 4Q 2021 are included in the restructuring business.*2 One-time Profit/Loss from restructuring and business transfers、purchase price allocation relating to M&A*3 Profit for the Year Attributable to Owners of the Parent FY2021(Actual)FY2022(Forecast)ChangeExcl. Special itemsSpecial items(One-time Profit/loss) *2TotalRevenueOPPL[Operating Profit Margin]PAT *3RevenueOPPLRevenueOPPL[Operating Profit Margin]2.Earnings Forecastfor FY2022Business Segment Information28Copyright 2022 FUJITSU LIMITED(Billions of yen)Revenue3,056.3 3,200.0 143.6 [Excl. restructuring][2,976.3][3,200.0][223.6]Excl. Special items193.9 320.0 126.0 %[6.3%] [10.0%] [3.7%] special items-58.9 10.0 68.9 OPPL135.0 330.0 194.9 %[4.4%] [10.3%] [5.9%] Revenue237.1 230.0 -7.1 Excl. special items5.8 – -5.8 %[2.5%] [-%] [-2.5%] special items- – – OPPL5.8 – -5.8 %[2.5%] [-%] [-2.5%] FY2021(Actual)FY2022 (Forecast)ChangeTechnologySolutionsUbiquitousSolutions・Revenue: 8% Growth excl. restructuringDX business expansion・OPPLImpact of increased revenueImprovements in profitabilityExpense EfficiencyEffects of DX human resources measuresOne time loss will not recur in fiscal 2022Higher Growth Investment⊕⊕⊕⊕⊕⊕⊕⊖・RevenueAlmost same as the previous year・OPPLHigher cost due to the yen’s depreciation⊖2.Earnings Forecastfor FY2022Business Segment Information29Copyright 2022 FUJITSU LIMITED(Billions of yen)Revenue375.9 390.0 14.0 Excl. special items75.8 70.0 -5.8 %[20.2%] [17.9%] [-2.3%] special items2.4 – -2.4 OPPL78.3 70.0 -8.3 %[20.8%] [17.9%] [-2.9%] Revenue-82.6 -100.0 -17.3 Revenue3,586.8 3,720.0 133.1 Excl. special items275.6 390.0 114.3 %[7.7%] [10.5%] [2.8%] special items-56.4 10.0 66.4 OPPL219.2 400.0 180.7 %[6.1%] [10.8%] [4.7%] FY2022 (Forecast)ChangeInter-segment EliminationTotalDeviceSolutionsFY2021(Actual)・RevenueHigh levels of demand for electronic components Lower sales of optical component products・OPPLIncrease in depreciation due to increased investmentImpact of lower sales of optical component products⊕⊖⊖⊖2.Earnings Forecastfor FY2022Business Segment InformationBreakdown of Technology Solutions30Copyright 2022 FUJITSU LIMITED(Billions of yen)Excl.Special itemsSpecial itemsExcl.Special itemsSpecial itemsExcl.Special itemsSpecial itemsRevenue3,056.3 3,056.3 – 3,200.0 3,200.0 – 143.6 143.6 – OPPL135.0 193.9 -58.9 330.0 320.0 10.0 194.9 126.0 68.9 Revenue1,840.5 1,840.5 – 1,860.0 1,860.0 – 19.4 19.4 – OPPL188.7 186.2 2.5 265.0 265.0 – 76.2 78.7 -2.5 System ProductsRevenue384.7 384.7 – 430.0 430.0 – 45.2 45.2 – Network ProductsRevenue232.8 232.8 – 250.0 250.0 – 17.1 17.1 – Revenue617.5 617.5 – 680.0 680.0 – 62.4 62.4 – OPPL56.6 56.1 0.5 90.0 90.0 – 33.3 33.8 -0.5 Revenue729.3 729.3 – 800.0 800.0 – 70.6 70.6 – OPPL23.9 21.5 2.4 30.0 30.0 – 6.0 8.4 -2.4 Revenue-131.0 -131.0 – -140.0 -140.0 – -8.9 -8.9 – OPPL-134.4 -70.0 -64.3 -55.0 -65.0 10.0 79.4 5.0 74.3 FY2022(Forecast)ChangeTechnology SolutionsSolutions/ServicesFY2021（Actual）SystemPlatformsInternational RegionsExcluding JapanCommon2.Earnings Forecastfor FY2022Factors Behind Change in Operating ProfitBreakdown of Technology SolutionsExcl. special items･ Revenue +143.6(+5%)･Operating Profit +126.0(Billions of yen)320.0(10.0％)Effects of DX human resources initiatives+30.0Growth Investments-27.0193.9(6.3％)Costs/Expense Efficiency +60.0(Profitability improvements+40.0)(Expense efficiency +20.0)Increase in profit due to increased revenue +63.0 increased revenue +143.6(Impact of restructuring -80.0) (Excl. restructuring +223.6 (+8%))FY202131FY2022Copyright 2022 FUJITSU LIMITED2.Earnings Forecastfor FY2022Path to AchievingTechnology Solutions GoalsExpand Revenue Excluding restructuring, +8% growth vs LY1Global Business Strategy(+6%)Rebuilding regional businesses, expanding global offerings, transforming into business producersjointly work out solutions for customers’ management issues, enhancing early-stage support for value creation and modernization7 Key Focus Areas for achieving a sustainable worldRecovery from the global chip shortageRecovering delayed projects, passing on costs (Revenue reduction: FY21: About -70.0 billion -> FY22: -40.0 billionCosts/Expense Efficiency 60.0 billion (Profitability improvements +40.0 billion, Expense efficiency: +20.0 billion)Use of GDCs/JGGDouble collaboration with GDCs/JGG, improved productivity through automation and delivery model standardizationImproving the quality and substance of SI contracts Enhanced quality/risk management, predictive trouble prevention using AI and dataEffects of forward-looking investments Further expanding the borderless office, transforming the ways we work, becoming business producers32Copyright 2022 FUJITSU LIMITEDFujitsu Uvance(+1%)(+1%)231232.Earnings Forecastfor FY2022Growth Investment Actively invest in sustainable corporate value growth33Copyright 2022 FUJITSU LIMITED(Billions of yen)40.0 85.0 120.0 35.0 [15.0][53.0][80.0][27.0][25.0][32.0][40.0][8.0]Investments for Value Creation31.0 35.0 60.0 25.0 ・Global Offerings Development2.0 9.0 30.0 21.0 Fujitsu Uvance、Global offering development・Service Delivery Transformation1.0 7.0 9.0 2.0 Japan Global Gateway, GDC enhancements・New business creation6.0 12.0 14.0 2.0 Global base station、5G/6G、Smart city・Others22.0 7.0 7.0 – M&A、CVC、reskilling to business producerInvestments for our own transformation9.0 50.0 60.0 10.0 ・Internal DX investments6.0 29.0 46.0 17.0 One Fujitsu Project､Security enhancement、・Work Life Shift3.0 21.0 14.0 -7.0 Infrastructure enhancement、Human resource development Borderless office (optimum arrangement of offices)FY2022（Forcast）ChangeGrowth Investment[OPEX][CAPEX]FY2020（Actual）FY2021（Actual）2.Earnings Forecastfor FY2022Path to Achieving Technology Solutions Goals34Copyright 2022 FUJITSU LIMITEDFactors Behind Changes in Operating Profit(billions of yen)FY2020FY2021→FY2021→FY2022[ ]is the changes in sales( △ 31.3)( 143.6)Changes in sales-10.963.042.260.0-30.0Growth investment(Expense)-38.0-27.0Total-6.7126.0Costs/Expense EfficiencyHuman resource initiativesRevenueExcl. Special items（Actual）（Actual）（Actual）(Forecast)OPPL195.9200.6193.9320.0Excl. Special itemsFor GrowthFor StabilityFY201920202021 2022[Operating ProfitMargin]Excl. Special items3,284.3 3,087.7 3,056.3 3,200.0 (6.0%) (6.5%) (6.3%) (10.0%) (Billions of yen)2.Earnings Forecastfor FY2022Cash FlowsFY2020(Actual)FY2021(Actual)FY2022(Forecast)vs LY(Billions of yen) Free Cash Flows236.3189.0280.091.0(Base Cash Flows*)(191.0)(211.8)(340.0)(128.2)*Base Cash Flows = FCF – Payment of lease obligation + Growth Investment(742.8 billion yen for 3 Years)◼ Free cash flow increased by 91.0 billion due to sales growth and increased profit-based growth35Copyright 2022 FUJITSU LIMITED2.Earnings Forecastfor FY2022Status of Capital AllocationAsset RecyclingFY2023 -FY2024(FY22)340.0 bn.(FY21)211.8 bn.(FY20)191.0 bn.Over 1 tn. yenGrowth Invest.500-600 billionReturns400-500 billionBase Cash Flow◼ Cash flow generation is on pace to exceed plan(Positive trends can also be expected going forward)Currently considering refining the business plan and capital allocation under review①Expand strategic investments to accelerate business growth②Review level of shareholder returns in view of capital efficiency(Plan to revise overall view of allocations in line with next medium-term business plan)3 Years Total742.8 bn.◼ In view of the probability of expanded cash flow, expand shareholder returns for FY2022• Total Payout Amount : Around 200.0 billion(Increase of 100 bn. vs LY)(For FY2023 and beyond, decisions will be made flexibly in view of the status of strategic investment execution, including acquisitions, and changes in the business environment)36Copyright 2022 FUJITSU LIMITEDInitial PlanCash Flow ProgressFive Years – FY2020-FY20242.Earnings Forecastfor FY2022Returns to Shareholders◼ Increase total payout to 200 billion in fiscal 2022◼ Dividend : Stable and steady ◼ Share Repurchaseincrease in dividendsIn the light of capital efficiency, share repurchase is the main focus of enhanced returns150.0 billion yen（+100.0 billion vs LY）Repurchase period: May 2, 2022 – March 31, 2023◼ Total Payout AmountIncrease in dividends for 7 consecutive years240220200Yen90110180150FY16FY17FY18FY19FY20FY21FY22（Forecast）* Including acquisition of shares not constituting a full unit37Copyright 2022 FUJITSU LIMITED(Billions of yen)FY2020（Actual）FY2021（Actual）FY2022（Forecast）Dividends39.9 43.3 45.5 Share repurchase*20.1 50.1 150.0 Total payout amount60.0 93.5 195.5 Total payout ratio30%51%70%FY2020（Actual）FY2021（Actual）FY2022（Forecast）End of First Half100 Yen 110 Yen 120 Yen End of Fiscal Year100 Yen 110 Yen 120 Yen Annual200 Yen 220 Yen 240 Yen Per Share2.Earnings Forecastfor FY2022Toward Sustainable Enhancement of Corporate ValueFinancial TargetsNon-Financial KPIs• Revenue in Technology Solutions3.2 trillionCompany-wide3.7 trillion• Operating profit margin in TS10% (320.0 billion) Company-wide400.0 billion• EPS CAGR (FY20-FY24)12%• Customer NPSvs FY21 base+ 3.7 Points• Employee engagement63686775• DX Promotion IndicesFY19 (Actual)FY20 (Actual)FY21 (Actual)FY22 (Target)1.9FY19 (Actual)2.4FY20 (Actual)3.2FY21 (Actual)3.5FY22 (Target)Capital Allocation• Base cash flow• Growth investment• Shareholder returnFY2020191.0 billion40.0 billion60.0 billionFY2021211.8 billion85.0 billion93.5 billionFY2022340.0 billion120.0 billion200.0 billion38Copyright 2022 FUJITSU LIMITEDThank youCopyright 2022 FUJITSU LIMITEDCautionary StatementThese materials may contain forward-looking statements that are based on management’s current information, views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors listed below. • General economic and market conditions in key markets (Particularly in Japan, Europe, North America, Oceania, and Asia, including China)• Fluctuations in exchange rates or interest rates• Fluctuations in capital markets•Intensifying price competition• Changes in market positioning due to competition in R&D• Changes in the environment for the procurement of parts and components• Changes in competitive relationships relating to collaborations, alliances and technical provisions• Risks related to public regulations, public policy and tax matters• Risks related to product or services defects• Potential emergence of unprofitable projects• Risks related to R&D investments, capital expenditures, business acquisitions, business restructuring, etc.• Risks related to natural disasters and unforeseen events• Changes in accounting policies40Copyright 2022 FUJITSU LIMITEDSupplementary41Copyright 2022 FUJITSU LIMITED(Supplementary)Financial Resultsfor FY2021Consolidated PL42Copyright 2022 FUJITSU LIMITED(Billions of yen)(%)Revenue3,589.7 3,586.8 -2.8 -0.1 -43.1 Operating Profit266.3 219.2 -47.1 -17.7 9.2 [Operating Profit Margin][7.4%] [6.1%] [-1.3%] [0.3%] Financial income (expenses), etc25.5 20.7 -4.7 -18.6 291.8 239.9 -51.8 -17.8 202.7 182.6 -20.0 -9.9 22.6 Exchange RateU.S. dollar / Yen106 112 6 5.7 7 Euro / Yen124 131 7 5.6 11 British pound / Yen139 154 15 10.8 14 Change vs.Ⅿar forecastProfit for the Year　Attributable to Owners of the ParentFY2021（Actual）ChangeFY2020（Actual）Profit for the Year Before Income Taxes(Supplementary)Financial Resultsfor FY2021Business Segment Information [Quarterly Breakdown of Results] 43Copyright 2022 FUJITSU LIMITED(Billions of yen)1Q2Q3Q4Q1Q2Q3Q4QRevenue683.5 709.5 765.9 928.7 687.0 725.7 738.1 905.4 OPPL13.3 31.0 53.5 95.3 17.0 24.1 40.2 53.5 Revenue394.1 444.7 458.0 586.5 398.6 446.7 437.5 557.4 OPPL18.6 38.2 42.6 91.2 20.1 36.5 38.2 93.8 Revenue146.9 133.5 161.6 191.6 140.8 145.8 144.2 186.6 OPPL4.9 1.8 11.5 20.5 7.9 7.8 5.8 35.0 Revenue171.0 163.8 192.4 196.2 177.2 169.4 192.3 190.4 OPPL-3.7 2.9 8.6 3.8 2.2 2.8 11.6 7.1 Revenue-28.6 -32.6 -46.2 -45.8 -29.6 -36.3 -35.9 -29.1 OPPL-6.4 -11.8 -9.2 -20.3 -13.3 -23.0 -15.4 -82.5 Revenue72.6 80.6 80.2 85.4 53.8 62.7 60.8 59.6 OPPL3.5 3.1 29.7 6.7 1.6 3.4 0.6 0.1 Revenue68.3 70.3 75.5 79.6 81.0 94.1 101.7 98.9 OPPL5.3 5.7 10.2 8.4 15.1 20.1 24.2 18.8 Revenue-21.7 -31.4 -27.3 -30.4 -20.0 -21.7 -20.2 -20.6 Revenue802.7 829.0 894.3 1,063.5 801.9 861.0 880.5 1,043.3 OPPL22.2 39.9 93.4 110.5 33.7 47.7 65.1 72.5 TotalFY2020 (Actual)Technology SolutionsSolutions/ServicesSystemPlatformsUbiquitous SolutionsInternational RegionsExcluding JapanDevice SolutionsInter-segmentEliminationCommonFY2021 (Actual)(Supplementary)Financial Resultsfor FY2021Business Segment Information [Revenue Breakdown-In and Outside Japan]44Copyright 2022 FUJITSU LIMITED(Billions of yen)3,087.7 3,056.3 -31.3 -1.0 Japan2,237.6 2,131.2 -106.4 -4.8 Outside Japan850.1 925.1 75.0 8.8 1,883.6 1,840.5 -43.1 -2.3 Japan1,842.8 1,795.1 -47.7 -2.6 Outside Japan40.7 45.3 4.6 11.4 633.7 617.5 -16.2 -2.6 Japan505.3 416.5 -88.7 -17.6 Outside Japan128.4 200.9 72.5 56.5 723.7 729.3 5.6 0.8 Japan0.4 0.6 0.1 37.9 Outside Japan723.2 728.7 5.4 0.8 -153.3 -131.0 22.2 – 319.0 237.1 -81.9 -25.7 Japan209.0 129.6 -79.3 -38.0 Outside Japan109.9 107.4 -2.5 -2.3 293.8 375.9 82.1 27.9 Japan75.8 87.0 11.1 14.7 Outside Japan217.9 288.9 70.9 32.6 -110.9 -82.6 28.3 – 3,589.7 3,586.8 -2.8 -0.1 Japan2,417.6 2,269.8 -147.7 -6.1 Outside Japan1,172.0 1,316.9 144.8 12.4 Ratio of Revenue Outside Japan32.7% 36.7% 4.0% RevenueCommonDevice SolutionsRevenueInternational RegionsExcluding JapanRevenueSolutions/ServicesSystemPlatformsTotalRevenueRevenueUbiquitous SolutionsInter-segment EliminationRevenueRevenueRevenueFY2020(Actual)Change(％)Technology SolutionsRevenueFY2021(Actual)(Supplementary)Financial Resultsfor FY2021Breakdown of International RegionsExcluding Japan45Copyright 2022 FUJITSU LIMITED(Billions of yen)Revenue723.7 729.3 5.6 -16.0 OperatingProfit11.6 23.9 12.3 Revenue347.8 362.7 14.8 – OperatingProfit5.3 7.9 2.5 Revenue170.4 169.0 -1.4 – OperatingProfit5.4 7.5 2.0 Revenue50.7 39.1 -11.5 -15.0 OperatingProfit-5.4 0.6 6.1 Revenue79.8 83.4 3.5 – OperatingProfit2.6 2.7 0.1 Revenue74.3 79.7 5.4 – OperatingProfit1.7 3.9 2.2 Revenue0.4 -4.7 -5.2 -0.9 OperatingProfit1.8 1.0 -0.8 Note: Revenue includes Inter-region revenue.ChangeImpact of restructuring［Revenue］NWE[Northern & WesternEurope]AmericasAsiaOthersCEE[Central & EasternEurope]OceaniaInternational RegionsExcluding JapanFY2020(Actual)FY2021(Actual)(Supplementary)Financial Resultsfor FY2021Changes in Financial Indicators46Copyright 2022 FUJITSU LIMITED(Billions of yen)FY2019（Actual）FY2020（Actual）FY2021（Actual）405.5 316.3 285.3 (-46.2)(-165.5)(-198.7)0.33 0.22 0.18 38.9 45.5 47.7 13.5 15.1 12.0 791.20 1,013.78 924.21 *1 Return on Equity Attributable to Owners of the Parent (%)*2 Earnings per share(Basic) EPS(Yen) Interest-bearing Loans (Net Interest-bearing Loans) D/E Ratio (Times) Equity Attributable to Owners of the Parent Ratio (%) ROE(%) *1*2(Supplementary)Earnings Forecastfor FY2022Assumption used for FY2022 Forecasts 47Copyright 2022 FUJITSU LIMITED1. Exchange Rates（Average）and Impact of FluctuationU.S. dollar / Yen106 112 115 -1.2Billion yenEuro / Yen124 131 130 0.0Billion yenBritish pound / Yen139 154 155 0.0Billion yen* Impact of 1 yen fluctuation on operating profit (yen appreciation). FY2020(Actual)Impact ofExchange RateFluctuationFY2022(Forecast)*FY2022(Forecast)FY2021(Actual)(Supplementary)Earnings Forecastfor FY2022Assumption used for FY2022 Forecasts 48Copyright 2022 FUJITSU LIMITED(Billions of yen)Technology Solutions46.6 46.4 50.0 Ubiquitous Solutions0.2 0.0 0.0 Device Solutions40.7 42.5 90.0 87.5 88.9 140.0 76.0 89.5 100.0 3. R&D Expenses 113.8 105.3 105.0 [3.2%] [2.9%] [2.8%] [As % of Revenue]R&D ExpensesCapital expenditures and depreciation do not include the impact of adopting IFRS 16(Leases).Capital ExpendituresDepreciationFY2020(Actual)FY2021(Actual)2. Capital Expenditures and Depreciation（Property, Plant and Equipment）FY2022(Forecast)(Supplementary)Earnings Forecastfor FY2022◼ Capital Allocation Policy（Announced in July 2020, April 2021）Capital Allocation Policy(1) Cash flow: Generate over 1 trillion yen in free cash flow over ▌ Execution of Strategic Investments in GrowthFive Years(FY20-24)the next 5 yearsshareholder returns(2) Allocation: Optimally allocate cash to growth investments andTo create value for customers and society, and to transform Fujitsu into a DX company, will actively implement necessary investments (500-600 billion yen over 5 years)(1) Generating Stable Cash Flow（2）Concept of allocation◼ Investments in Value CreationFinancial Foundation◼ Investments in Transforming Fujitsu▌ Stable Shareholder Return StrategicInvestmentIn Growth(500~600 billionyen)FreeCash flow（FCF）BasicBusinessCFAssetOptimizationShareholder Return(400~500 billion yen)Over 1 trillion yen ※ Basic Business CF = FCF in Cash Flow Statements － Payment of lease obligation49+ Strategic Investments in GrowthStable shareholder return over the medium to long term commensurate with the growth stage of business and profit(400 to 500 billion yen over 5 years)◼ Dividends：Stable dividend increases based on the sustainable growth in Fujitsu’s business◼ Share Repurchases：Agile approach to share repurchases funded from long-term retained earnings (Responding to changes in demand for funds)◼ Enhance business growth and profitability, achieve financial targets of increasing sales and improving the operating margin.◼ Focus on EPS in terms of capital efficiency, and aim for sustainable growth in EPS going forward.（FY20-24 EPS CAGR 12%）Copyright 2022 FUJITSU LIMITED