Fujitsu
Integrated
Report 2024
02
Editorial policy / Disclosure system
03
Fujitsu Group overview and
management policy
04
About Fujitsu
05
The Fujitsu Way
06
Value creation model
07
Trajectory of change
08
Business portfolio
09
Materiality
10
Message from the CEO
We will achieve sustainable growth and
increase corporate value by accelerating
our rate of change and enhancing the value
we provide to our customers and the society that
exists beyond them.
Takahito Tokita
Representative Director
CEO
15
Management strategy
16
2030 vision and 2023–2025 Medium-Term
Management Plan
17
2023–2025 Medium-Term Management Plan
23
Understanding the relationship between
financial and non-financial indicators
24
Financial strategy and business overview
25
Message from the CFO
28
Highlights of consolidated performance in
fiscal 2023
29
Overview of operations by segment
33
Progress and outlook in focus areas
34
Strengthening of consulting capabilities
37
Growth scenario for Fujitsu Uvance
41
Fujitsu Uvance’s key offerings
42
Technology leadership underpinned by
a pioneering AI strategy
44
Growth potential of modernization
45
Improving productivity by transforming
delivery
46
Reinforcing management capital
47
Message from the CHRO
(Chief Human Resource Officer)
49
Human resource management
53
Intellectual property
54
Data-driven management expertise
55
Sustainability management
56
Message from the CSSO
(Chief Sustainability & Supply Chain Officer)
57
Overview of our sustainability management
58
The environment
60 TCFD-based information disclosure
61 TNFD-based information disclosure
61
Human rights
63
Supply chain
64
Compliance
65
Collaboration with stakeholders
66
Corporate governance
67
Interview with the Chairperson of
the Board of Directors
69
Management
72
Status of corporate governance
82
Risk management
84
Product and service quality
85
Information security
87
Data section
87
Performance highlights
91
Agreement with international norms,
participation in international organizations,
and external evaluations
92
Company overview / Shareholder data
Contents時田CEO画像
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Group overview
and management policy
Fujitsu Integrated Report 2024
01
Fujitsu Integrated Report 2024
01
Forward-looking statements
This Integrated Report may contain forward-looking statements that are based on management’s current views and assumptions
and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materi
ally 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: general economic and market conditions in key
markets (particularly in Japan, Europe, North America, and Asia, including China); rapid changes in the high-technology market
(particularly semiconductors, PCs, mobile phones, etc.); 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; potential emergence of unprofitable projects; and changes in accounting policies.
Editorial policy / Disclosure system
Editorial policy
This report aims to communicate the Fujitsu Group’s business activities and initia
tives for creating value to stakeholders comprehensively and succinctly. Our aim
is to provide a unified story that includes financial as well as non-financial infor
mation, such as our environmental, social, and governance (ESG) activities,
describing in a straightforward manner the Fujitsu Group’s initiatives toward
sustainable growth.
This report explains the progress of our medium-term management plan for
fiscal 2023–2025, Fujitsu Uvance as a focus area, and management capital as a
source of value creation. We have enhanced the content of the publication by
reflecting stakeholder feedback pertaining to the fiscal 2023 integrated report
to explain the Group’s measures and reforms regarding sustainability
management and governance using both qualitative and quantitative data.
We invite stakeholders to read this report and share your candid opinions. We
will continue to prioritize dialogue with our stakeholders to deepen mutual
understanding and enhance the Group’s corporate value.
Reference guidelines
In producing this report, we have referred to various guidelines such as the
International Integrated Reporting Framework of the IFRS Foundation and the
Guidance for Collaborative Value Creation of the Japanese Ministry of Economy,
Trade and Industry.
Disclosure system
We disclose information in a variety of media, including integrated reports. The Fujitsu
Technology and Service Vision provides a vision for the future of our business and society
through the use of technology, while Fujitsu Transformation News provides timely infor
mation on Fujitsu’s efforts to realize Our Purpose. For more comprehensive information,
please also refer to the IR and sustainability websites, as well as the annual securities
report and the Sustainability Data Book.
Narrative
Comprehensive detail
Financial information
Non-financial information
Fujitsu Technology
and Service Vision
Integrated report
Fujitsu Transformation News
Corporate website
Reports to
shareholders
Sustainability Data Book
Corporate Governance
Report
Financial results
announcements
Sustainability website
IR website
Securities reports
Notes: 1. From fiscal 2014, Fujitsu has adopted the International Financial Reporting Standards (IFRS). However, some sections have presented
results under the Japanese accounting standard for the purpose of year-on-year comparison. These sections are indicated in the report.
2. All brand names and product names are trademarks and registered trademarks of their respective holders.
Target organizations: Fujitsu Limited and consolidated subsidiaries
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Group overview
and management policy
Fujitsu Integrated Report 2024
02
Fujitsu Group
overview and
management policy
Our Purpose is “to make the world more sustainable
by building trust in society through innovation.” This
overarches our vision for 2030: being a technology
company that realizes net positive through digital
services, which is driving specific initiatives. We will
accelerate the transformation of our business model
and portfolio to create sustainable value by helping
to solve global environmental problems, develop a
digital society, and improve people’s well-being.
03
Fujitsu Integrated Report 2024
03
Fujitsu
NTT Data
NEC
Hitachi
IBM
0
500
1,000
1,500
1,115.6
1,115.6
1,068.7
1,068.7
1,067.8
1,067.8
1,328.0
1,328.0
506.5
506.5
Notes: 1. Revenue estimate using calendar year, based on IDC’s service market definition. Ranking by vendors’ revenue in 2023
2. Calculated as 1 USD=140.52146 JPY
(Billions of US dollars)
(Billions of yen)
Source: IDC Japan, IDC Worldwide Semiannual Services Tracker 2023H2 Historical Release Publication Date: May 6, 2024
Fujitsu’s scale of business (by region)
Revenue by region
(Fiscal 2023)
¥3,756.0 billion
Consolidated number
of employees
123,527people
(As of March 31, 2024)
Japan
64.9%
Others
0.2%
Europe
18.7%
Americas
5.4%
Asia Pacific
7.3%
East Asia
3.5%
Japan
72,000
Europe
22,000
Americas
4,000
Asia Pacific
21,000
East Asia
5,000
Fujitsu’s position in the IT services market
The Fujitsu Group has operations in different
regions around the world, including Japan,
and provides digital services globally.
We have built large-scale, cutting-edge
systems that leverage our advanced technolo
gies and extensive track record, garnering the
No. 1 market share in Japan and a top-class
position worldwide in the IT services field.
60
40
20
0
Accenture
IBM
TCS
Deloitte
Fujitsu
26.1
26.1
18.4
18.4
43.1
43.1
14.7
14.7
19.3
19.3
About Fujitsu
Global IT services revenue
Japan IT services revenue
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
04
04
Fujitsu Integrated Report 2024
04
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Code of Conduct
Making the
world more
sustainable
Building trust
in society
Innovation
Our Values
Our Purpose
Aspiration
Empathy
Trust
Value to
Society
Value to
Society
The Fujitsu Way
Fujitsu promotes the “Fujitsu Way,” the principle for the behavior of
its people centered on Our Purpose, which sets out why Fujitsu
exists in society. All Fujitsu employees will seek to create value by
working every day in accordance with Our Values—Aspiration,
Trust and Empathy—and Our Code of Conduct.
In line with the Fujitsu Way, all people in the Group will strive to
achieve Our Values through the cycle of actions necessary to
achieve Our Purpose: To make the world more sustainable by
building trust in society through innovation.
Our Purpose
Our Purpose is to make the world more sustainable by building trust in society through innovation.
We respect human rights.
We comply with all laws
and regulations.
We act with fairness in
our business dealings.
We protect and respect
intellectual property.
We maintain confidentiality.
We do not use our position
in our organization for
personal gain.
Our Values
Aspiration
Trust
Empathy
Set ambitious targets and act with agility.
Embrace diversity and create original ideas.
Stay curious and learn from failures and experiences.
Deliver positive impact through human centric innovation.
Honor promises and exceed expectations.
Act with ethics, transparency and integrity.
Work autonomously and unite for common goals.
Contribute to a trusted society using technology.
Strive for customers’ success and their sustainable growth.
Listen to all people and act for the needs of our planet.
Work together to solve global challenges.
Generate shared value for our people, customers, partners,
community and shareholders.
Code of
Conduct
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
05
Fujitsu Integrated Report 2024
05
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Fujitsu’s business activities
People
strategy
Key strategies
GRB (Global Responsible Business)
Technology
strategy
Business model
and portfolio
strategy
Business
People
Technology
Customer success/
regional strategy
Community
Supply
Chain
Compliance
Environment
Well-being
Human Rights
and DE&I
Customers
Value creation model
Fujitsu’s
Materiality
Essential contribution
Input
Social and relationship capital
Community activity-related
expenditures
¥2.46 billion
Solving global environmental issues
Developing a digital society
Improving people's well-being
Technology
Management foundation
Human capital
Vision for 2030: Being a technology company that realizes net positive through digital services
Foundation for achieving
sustainable development
Customers, shareholders, employees,
partners, society, and the next generation
Contribute to reduced global GHG emissions
Fiscal 2030 targets: 0.3%
Digital accessibility
Fiscal 2030 targets: 150 million people+
Number of ICT skills and education provided
Fiscal 2030 targets: 12 million people+
Stakeholders
Solving global environmental issues
Planet
Developing a digital society
Prosperity
Improving people's well-being
People
Outcome Providing value to society
Management targets (Financial/Non-financial)
Fiscal 2023 results
Fiscal 2025 targets
Financial
indicators
Business growth and
improved profitability
Revenue
¥3.8 trillion
¥4.2 trillion
Adjusted operating profit
¥283.6 billion
¥500.0 billion
Strengthen cash generation capabilities
Core FCF
¥197.2 billion
¥300.0 billion
Increase efficiency of corporate capital
EPS CAGR (Fiscal 2022–2025)
12%
14–16%
Non-
financial
indicators
Contribute to reduced global
GHG emissions (Compared to fiscal 2020)
Scope 1, 2
41.6% reduction
50% reduction
Scope 3 cat 11
34.2% reduction
12.5% reduction
Customer NPS® (Compared to fiscal 2022)
+7.7
+20
Operating income per capital (Compared to fiscal 2022)
-11%
+40%
Employees
Employee engagement
69
75
Diverse leadership
16%
20%
Fiscal 2023 results
Our Purpose is to make the world more sustainable by building trust in society through innovation.
Financial capital
Total assets
¥3.5 trillion
Growth investment
¥202.1 billion
Human capital
Number of
employees
124,000 people
Ratio of female employees
25%
Natural capital
Energy consumption
4.88 PJ
Technology and
intellectual capital
R&D investment
¥123.3 billion
Investment for strengthening
management foundation
Approximately ¥75.0 billion
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
06
Fujitsu Integrated Report 2024
06
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
1,000
2,000
3,000
4,000
5,000
6,000
0
0
60
120
180
240
300
360
(Fiscal years)
2023
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2022
2021
2020
2019
2018
2017
2016
2015
Over the 89 years since its founding, Fujitsu has used innovative technologies to
solve issues faced by customers and society, and to provide new value. Amid the
accelerating evolution of digital technology and significant changes in the business
environment, the Group is shifting from a product-centric business model to one
focused on consulting and solutions. Over the past 20 years, we have spun off or
sold non-core businesses, focusing management resources on growth areas and
improving efficiency, which has led to increased profitability. In fiscal 2023, we
incurred one-time costs in connection with business restructuring, but adjusted
operating profit from focused businesses has increased, and we are steadily pro
gressing toward our goals. In addition, we are pursuing sustainable growth and
enhanced corporate value through proactive growth investments based on our
greatly heightened cash generation capabilities.
These transformations have been well received by the stock market, and our
share price has risen significantly to approximately 3.1 times over the last five years.
Net sales / Revenue (left scale)
Operating profit (right scale)
Note: Through fiscal 2013, information is in accordance with accounting standards generally accepted in Japan (JGAAP); information from
fiscal 2014 is in accordance with International Financial Reporting Standards (IFRS).
100
200
300
400
March 2024
March 2019
March 2014
March 2009
March 2004
Trajectory of change
(Billions of yen)
(Billions of yen)
Share prices
Transfer of car
navigation system
business and mobile
handset business
Transfer of PC
business
Transfer of plasma
display and LCD
business
Transfer of hard
disk drive business
Sale of
semiconductor plant
Transfer
of scanner
business
Source: LSEG
Notes: 1. The Fujitsu Group conducted a 10-for-1 stock split of its common stock effective on April 1, 2024. The graph shows values prior
to the stock split.
2. The graph displays the relative value of the stock price at the end of each month, taking the closing value at the end of the
fiscal year ended March 31, 2004 as one hundred.
Fujitsu
TSE sector indices (33 categories) / electric appliances
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
07
Fujitsu Integrated Report 2024
07
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
5,000
4,000
3,000
2,000
1,000
‒1,000
0
2023
–100
0
100
200
300
400
2023
Business portfolio
Segment
Subsegment
Main products and services
Service Solutions
Global Solutions
Consulting services
(Business consulting and technology consulting)
Cloud services (IaaS, PaaS, SaaS, etc.)
System integration (System construction, modernization, etc.)
Software (Business applications and middleware)
Software support services
Business process outsourcing
IT services
(Data center, network services, security services, in-vehicle information systems,
etc.)
Managed services
(Systems operations management, application operations management, service
desk, etc.)
Regions
(Japan)
(International)
Hardware Solutions
System products
(UNIX servers, mission-critical IA servers, PC servers, OS, storage system,
mainframe, front-end technology, etc.)
Network products
(Mobile systems, photonics systems, IP network equipment, etc.)
Hardware support services
(Support for system products and network products)
System support services
(Maintenance and monitoring services for information systems and networks, etc.)
Ubiquitous Solutions
PCs
Device Solutions
Electronic components (Semiconductor packages, batteries, etc.)
Intersegment Elimination/Corporate
R&D, elimination of intersegment sales, etc.
(Billions of yen)
Revenue
(Billions of yen)
Adjusted operating profit
(Fiscal year)
Ubiquitous Solutions
Device Solutions
Hardware Solutions
Device Solutions
Hardware Solutions
Service Solutions
(Global Solutions)
Service Solutions
(Global Solutions)
Service Solutions
(Regions [Japan])
Service Solutions
(Regions [International])
Service Solutions
(Regions [Japan])
Ubiquitous Solutions
Service Solutions
(Regions [International])
Service Solutions
(Intersegment Elimination)
Intersegment Elimination/
Corporate
Intersegment Elimination/
Corporate
(Fiscal year)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
08
Fujitsu Integrated Report 2024
08
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Essential contributions
New business models through cross-industry intelligence
Human-centric innovation
Prosperity
Developing a
digital society
People
Improving
people's
well-being
Planet
Solving global
environmental
issues
Management
foundation
Technology
Human capital
Foundation for achieving sustainable development
For more details, see Materiality
Materiality
The Fujitsu Group conducted evaluations from the perspectives of itself and its
stakeholders, and identified Materiality, which incorporates the perspective of
delivering value to customers and society through business activities.
Looking ahead to 2030, we have identified three areas for the Fujitsu Group’s
essential contributions (Materiality): Planet (solving global environmental issues),
Prosperity (developing a digital society), and People (improving people’s well-being).
To achieve our goals in these three areas, we will strengthen our technology, man
agement foundation, and human capital as the sources of value creation, while
supporting the creation of new business models and spurring innovation.
We organized social issues looking ahead to 2030 and conducted surveys and interviews with a wide
range of internal and external stakeholders to identify our Materiality in terms of the mutual impacts
of corporations and the environment and society. Going forward, we will conduct periodic reviews on
an annual basis and revise as necessary.
Organization and
identification of
social issues
List social issues based on
the SDGs and other refer
ences, and narrow them
down based on relevance
to the business.
Prioritization
Assessment by internal and
external stakeholders to
create a Materiality matrix.
Management
approval
Materiality is included in
the Medium-Term
Management Plan, and is
then discussed and
approved by the Board of
Directors.
Review
Discussions will be held at the
time of annual review and
mid-term management plan
review.
Materiality assessment process
Step 2
Step 3
Step 4
Step 1
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
09
Fujitsu Integrated Report 2024
09
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
時田CEO画像
Building a business model that looks toward 2030
In fiscal 2023, the Fujitsu Group clarified its direction
toward medium- to long-term value creation and the
realization of Our Purpose through the following
three points. First, we answered the question of “What
sort of company does Fujitsu want to become?” by
unveiling our vision for 2030: being a technology
company that realizes net positive through digital
services and expressing this vision both internally and
externally. Second, after organizing social issues look
ing toward 2030, we identified the main priorities for
the Group as our Materiality, and developed a frame
work for providing value to society through our busi
ness. Third, backcasting from our vision for 2030, we
formulated and launched the 2023–2025 Medium-
Term Management Plan (medium-term plan).
The medium-term plan covers a three-year period
building a business model for sustainable growth and
improved profitability with a view to 2030 and
beyond, preparing us for a leap forward from fiscal
2026. Our goal is to shift from a business model that
primarily focuses on traditional labor-intensive system
integration to one that provides high added value to
customers through cloud-based digital services.
Emerging changes in the business structure in
fiscal 2023
Our results for fiscal 2023, the first year under the
medium-term plan, demonstrate that we are making
progress on transforming our business model. The
Fujitsu Uvance business, which will play a leading role
Message from the CEO
We will achieve sustainable growth and increase corporate value
by accelerating our rate of change and enhancing the value we provide
to our customers and the society that exists beyond them.
Takahito Tokita
Representative Director
CEO
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
10
10
Fujitsu Integrated Report 2024
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Message from the CEO
in driving the Group’s growth, exceeded expectations
with an 84% year-on-year increase in revenue. We
expect continued growth in fiscal 2024, along with
deeper confidence in establishing a new business
model for the Group. We are also focusing on mod
ernization, which means helping customers optimize
their IT infrastructure with the latest technologies and
new products and services so they can transform their
business models by utilizing data. Customers tend to
take a cautious approach toward IT asset optimization
because it affects the very foundations of their busi
ness. As a result, growth in this market is somewhat
slower than anticipated. Even so, in fiscal 2023 we
reinforced our structure, which included an increase in
headcount, and upgraded our tools to meet the
robust demand we expect going forward. We plan to
leverage these enhanced resources to take advantage
of the market’s expansion from fiscal 2024.
The 2.0 percentage point improvement in gross
profit margin for the Service Solutions segment,
which we position as a growth area, is evidence of
success in our shift towards a more profitability-
focused business model. This improvement is attrib
utable to delivery transformation initiatives such as
standardization and automation of development pro
cesses, leveraging Global Delivery Centers (GDCs),
and value pricing, which have contributed to
enhanced profitability.
On the other hand, frankly speaking, we are only
midway along the path to making our overseas busi
ness more profitable. We have already completed
structural reforms in the Americas. Using this region as
a leading model, we are accelerating our business port
folio transformation in Europe to improve profitability
and considering reforms in the Asia Pacific region.
We take the matter relating to the post office in the
United Kingdom, a core part of the Europe region,
extremely seriously. The Group’s involvement in this
matter is deeply regrettable and we recognize our
moral responsibility. The Group is cooperating fully
with the statutory investigation in the United
Kingdom, and will disclose information to stakeholders
as appropriate after the outcome of the investigation.
Our intention in setting high goals
In fiscal 2023, growth of the Service Solutions segment
outpaced the market, and key non-financial indicators
such as Customer Net Promoter Score (NPS®)*1 also
improved. On this basis, we might say that manage
ment is performing well. However, I am by no means
satisfied with the status quo. I believe that the Group’s
transformation will accelerate only when all of its busi
ness divisions take on the challenge of achieving
higher levels of performance, and when we have
greater collaboration among business divisions and
between business and corporate divisions.
This is the thinking behind the high financial tar
gets in our plan for fiscal 2023. We fell short of the
planned targets in some areas, which is grounds for
reflection. I consider it my responsibility as a manager
to set goals that encourage all employees to take on
challenges and grow, and then to achieve these goals
to meet the expectations and earn the trust of
shareholders, investors, and other stakeholders.
*1 Net Promoter®, NPS®, NPS Prism®, and the images and symbols used in connection
with NPS are registered trademarks of Bain & Company, Fred Reichheld, and NICE
Systems, Inc.
I am by no means satisfied with the status quo. I believe that the Group's
transformation will accelerate only when all of its business divisions take
on the challenge of achieving higher levels of performance, and when
we have greater collaboration among business divisions and between
business and corporate divisions.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
11
Fujitsu Integrated Report 2024
11
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Message from the CEO
Demonstrating competitive advantages through
our growth strategy
Even so, I am confident about the Group’s medium-
to long-term growth. We are outlining a business
vision that looks to 2030 and even beyond—to a
point in the longer-term future after society has
become carbon neutral. We have formulated a
growth strategy considering what services are
required to get to that point, what technologies are
necessary, and what human capital is required to
offer them. We are making steady progress toward
realizing this strategy, and we are demonstrating the
Group’s competitive advantages in the process.
One of the Group’s competitive advantages is tech
nological expertise. We have been researching artificial
intelligence (AI) since the 1980s, and have integrated
the results of this research into Fujitsu Uvance and its
practical application as a service that customers can
actually use. For instance, in June 2024 we announced
several generative AI technologies, including the spe
cialized automatic generative AI tailored to corporate
needs utilizing the world’s first technology. Highlighting
our R&D capabilities involving cutting-edge technolo
gies, in October 2023 we unveiled development of a
64-qubit superconducting quantum computer offering
service through a platform that can be linked to
a quantum simulator. We are also making steady R&D
progress on a next-generation, high-performance,
power-saving processor tentatively dubbed the
FUJITSU-MONAKA.
Another notable competitive advantage is our cus
tomer base and positioning in the Japanese market.
The Group maintains the top share of the IT services
market and has established a dominant position in the
domestic market for the development and manufac
ture of mainframes and UNIX servers. Although this is
now referred to as “legacy” hardware, the relation
ships of trust with customers and deep understanding
of their businesses we have built through the con
struction and operation of mission-critical systems
have lasting value. These relationships are important
because they prepare the ground for new proposals.
The responsibility to support the digital transforma
tion (DX) of long-time customers through our hard
ware and systems integration business and the
potential for offering new value through sustainability
transformation (SX) are major business opportunities
for the Group.
The Group’s extremely robust alliances with global
IT companies are due in part to their high regard for
these competitive advantages. Even global companies
with strong platforms and solutions can find it difficult
to deliver that value in a way that benefits customers
in Japan. This is where the Group’s expertise comes
into play: developing advanced applications that
leverage platforms and implementing proposals and
solutions that address customers’ business challenges.
The Group’s combination of technical capabilities,
customer base, and market positioning make it a
unique match for alliance partners seeking to provide
IT services in the Japanese market.
Transforming our business portfolio and
accelerating the commercialization of AI
I mentioned that Fujitsu Uvance, a business model
that is geared toward structural changes in society
and industry, is gaining customer acceptance, which
is producing strong results. This success is due in part
to our approach—we invited our customers’ manage
ment teams to the Fujitsu Uvance experience space
at our headquarters to view demonstrations—as well
as to the fact that we now have a full menu of service
offerings. That said, I honestly believe this rollout was
a year late, based on our assumptions when we
announced Fujitsu Uvance in 2021. To translate our
competitive advantages into medium- and long-term
growth, we need to step up the pace of change. With
consulting services that are integral to customer
negotiations now in full swing under the new Uvance
Wayfinders brand, and with an increased variety of
offerings, in fiscal 2024 we will accelerate the trans
formation of our business portfolio centered on
Fujitsu Uvance.
AI is also key to increasing the value Fujitsu Uvance
provides to customers. We believe that by 2030,
The potential for offering new
value through sustainability
transformation (SX) is a
major business opportunity for
the Group.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
12
Fujitsu Integrated Report 2024
12
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Message from the CEO
a company’s competitiveness will depend on the
integration of AI into its business processes.
Accordingly, we need to step up our investment in
growth, especially in AI. We need to put AI and other
technologies to practical use more quickly. We will
integrate our proprietary technology into Fujitsu
Uvance to add value to our customers, differentiate
our services, and aim for the top position in
AI-related services for the Japanese market.
We will accelerate our business portfolio transfor
mation and continue to improve system quality, which
is a cornerstone of customer trust. Under the lead of
the CQO (Chief Quality Officer), the Group has contin
uously reviewed and promoted measures to enhance
system quality. Of course, we also need to use data to
explain to customers how our initiatives are enhancing
quality. We welcome honest feedback from customers
and society as well as suggestions on areas we need
to improve. I believe this is how a technology com
pany should fulfill its responsibility to continuously
strive for quality that meets customers’ expectations.
Utilizing the practical knowledge we have
accumulated through data-driven management
The Group is promoting the core OneFujitsu program
in its quest for data-driven management. In addition
to OneCRM, which has been operating in all regions
since April 2022, OneERP+, the Group’s backbone
system, will go live in October 2024 starting in Japan.
This system will further augment the real-time visual
ization of business operations, which we have already
partially achieved. It will also enhance the ease of
system maintenance and operation, and our response
capability and the speed with which we address
changes in the environment through system updates
and revisions. More than anything, we look forward to
increasing productivity through further progress in
standardizing the business processes we have been
working on under the OneFujitsu program.
The benefits of the OneFujitsu program go beyond
the Group’s own productivity gains. The experience
and knowledge acquired through our internal prac
tices serve as a reference for our customers and help
strengthen our consulting capabilities, which is a key
focus for the Group. In particular, we have gained
valuable practical knowledge through the Group’s
trial-and-error process of introducing 3S: SAP,
ServiceNow, and Salesforce.*2 In addition to the tech
nology needed to implement 3S, we have gained
extremely broad-based knowledge, such as in how to
make the most of 3S, how to adjust business pro
cesses to take advantage of them, and how to culti
vate the personnel who use them in corporate
divisions, such as accounting and human resources,
and in front office sales division. I am convinced that
by taking up the challenge of DX to move away from
legacy systems and by utilizing the practical knowl
edge we have gained by repeatedly overcoming
obstacles, we can outshine our competitors in provid
ing consulting services that are more responsive to
customers’ issues and needs.
*2 A business application that encapsulates enterprise resource management (ERP),
customer service management (CSM), and customer relationship management
(CRM)
We will . . . aim for the top position
in AI-related services for the
Japanese market.
By utilizing the practical
knowledge we have gained
repeatedly overcoming obstacles,
we can outshine our competitors
in providing consulting services
that are more responsive to
customers’ issues and needs.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
13
Fujitsu Integrated Report 2024
13
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Message from the CEO
Strengthening functions through a new
management leadership structure
The Group has positioned its three-year medium-
term plan as a period of preparation to launch on a
growth trajectory from 2026. The forward-looking
reinforcement of management functions is part of
this preparation. To this end, in April 2024 we put in
place a new management leadership structure com
posed of five vice presidents, as well as myself. The
aim is to further increase management efficiency and
speed up decision-making by delineation according
to function.
In addition to the CFO, who specializes in finance,
and the CTO, who is responsible for accelerating the
commercialization of technology, we have clarified
functional responsibility in the Service Solutions seg
ment, which is a growth area. We have assigned three
vice presidents to handle the individual functions of
consulting, Fujitsu Uvance, and modernization. We
believe this arrangement will enable us to change
course more swiftly, as fluctuations in the business
environment necessitate. The team of five will work
together as a team, while also engaging in robust
debate, toward the common goal of transforming the
Group, which is a massive entity with more than
120,000 employees.
The resolve embodied in net positive
We must continue to embrace the challenge of creat
ing value and achieving medium- to long-term
growth. “Net positive,” a phrase used in our vision for
2030, expresses this belief. The outcomes of the
Group’s business activities are not unfailingly positive.
For example, the spread of cloud services has caused
power consumption to rise. We believe, however, that
we should wholeheartedly embrace businesses that
help society and generate overall positive value that
outweighs negative impacts. If we stop taking on
challenges for fear of repercussions, in addition to
neglecting one of the most important tenets of the
Fujitsu Way, we will be left behind in a rapidly chang
ing society and be unable to achieve Our Purpose.
Since becoming president, we hold town hall
meetings for employees to entrench these ideas
throughout the Group. To truly internalize these con
cepts, though, employees need to embrace them in
their work. As a leader, I need to set high goals while
clearly outlining a growth strategy, and continue to
encourage behavioral change among employees. I
believe our employees will come to realize the impor
tance of challenges that contribute to net positive
while taking action to achieve our goals and discover
ing and solving problems independently as we pro
mote our growth strategy toward 2030.
The Group will continue its transformation toward
2030. We will persevere in our efforts to address
global environmental problems, develop a digital
society, and improve people’s well-being. We aim to
create a positive impact on society as a whole and
sustainably enhance corporate value. We expect to
realize Our Purpose as the culmination of these
efforts. I encourage our stakeholders to follow
Fujitsu’s developments with interest.
Takahito Tokita
Representative Director
CEO
We must continue to embrace
the challenge of creating value
and achieving medium- to long-
term growth.
(Top row, from left)
Takeshi Isobe,
Vivek Mahajan,
Yoshinami Takahashi
(Bottom row, from left)
Megumi Shimazu,
Shunsuke Onishi
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
Fujitsu Integrated Report 2024
14
Fujitsu Integrated Report 2024
14
About Fujitsu
The Fujitsu Way
Value creation model
Trajectory of change
Business portfolio
Materiality
Message from the CEO
Management
strategy
Fujitsu is promoting the 2023–2025 Medium-Term
Management Plan, which it formulated by backcast
ing from its vision for the future in 2030 and beyond.
The plan has three main initiatives: transform our
business model and portfolio, ensure reliable sup
port for the modernization of customers’ IT assets,
and improve the profitability of our international
business. By implementing these three initiatives and
the four key strategies for realizing them, we aim to
build a business model that combines sustainable
growth and high profitability.
15
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term Management Plan
2030 vision
Being a technology company that realizes net
positive through digital services
Impact indicators (Materiality)
Solving global environmental issues
Contribute to reduced global GHG
emissions:
Reduction of at least 0.3%
Use of renewable energy in Fujitsu:
100%
Developing a digital society
Digital accessibility:
150 million people+
Improving people’s well-being
Number of people receiving ICT
skills training:
12 million people+
Non-financial indicators
Employee engagement:
75+
Diverse leadership
(ratio of female managers):
30%+
Financial indicators
Growth area revenue: Fujitsu Uvance ¥1 trillion+
Operating profit margin: Service Solutions
17%+
EPS: CAGR (Fiscal 2023–2030)
17%+
During this three-year plan period, we will establish a business
model for sustainable growth and improved profitability
targeting 2025, through to 2030 and beyond
Medium-Term Management Plan
(Fiscal 2023 to 2025)
Previous Medium-Term
Management Plan
(Fiscal 2020 to 2022)
Aiming for 2030
and beyond
Transform our business model and portfolio
Ensure reliable support for customers’ modernization
Improve the profitability of our international business
2019
2022 2023
2025 2026
2030
Main initiatives
The 2023–2025 Medium-Term Management Plan was formulated
by envisioning Fujitsu’s ideal position in society in 2030 and
beyond, and then working backward from that vision.
2030
vision
Business model and portfolio strategy
Business segments and portfolio
Shift to growth areas
Customer engagement model
Technology strategy
Develop core technologies
Business utilization of technologies
(enhance value delivered)
Technology
People
Customers
Business
Customer success/
regional strategy
Expand consulting
Modernization
International focus on services
Strategic alliances
Further stability of customers’ business
People strategy
Globally unified roles
Improve productivity (per employee)
Strengthen management foundation
Digital society
Global environment
Well-being
Key strategies
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
16
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
2023–2025 Medium-Term Management Plan
Outline of key strategies
To achieve our vision for 2030 and beyond, our 2023–2025 Medium-Term
Management Plan (medium-term plan) outlines three main initiatives: transform our
business model and portfolio, ensure reliable support for the modernization of
customers’ IT assets, and improve the profitability of our international business. We
developed four key strategies to steadily advance these initiatives.
Our business model and portfolio strategy aims to strengthen our business foun
dation by expanding service areas, specifically targeting growth in the Fujitsu Uvance
and modernization businesses. Our customer success/regional strategy is focused on
strengthening our global customer engagement and support which includes pro
moting and expanding our consulting talent, beginning in Japan, whilst in parallel
shifting our international business to a services focus. Our technology strategy is
focused on increasing the value we provide to customers by leveraging Fujitsu’s
competitive advantages in technology. We are developing five Key Technologies
centered around AI, and embedding them within Fujitsu Uvance solutions and
services. Our people strategy aims to strengthen our business foundations by
establishing a global workforce portfolio that is connected to our business needs,
and improving productivity through Fujitsu’s own digital transformation (DX).
All key strategies contribute to our financial and non-financial measures, working
towards achieving an overall net positive contribution.
R&D focused on five Key Technologies, all centered on AI
Contribute to differentiated and improved customer value by
deploying core technologies
Technology
People
Customers
Business
Build a portfolio of human resources linked to businesses and
advance training programs
Enhance customer value and elevate our business foundation by
strengthening human resource management and fully establish
ing data-driven management
Digital society
Global environment
Well-being
Grow and increase the profitability of our Service Solutions busi
ness by enhancing digital services and modernization, focusing
on Fujitsu Uvance. This includes expanding our global footprint,
market share, and entry into new, high-growth markets
Provide optimal, differentiated solutions that foster long-term
customer engagement
Promote global standardization and automation of delivery
Strengthen business portfolio management
Acquire and increase technology and business consulting expertise
Support customers’ asset optimization, DX, and sustainability
transformation (SX)
Increase the ratio of Fujitsu Uvance revenue in the international
business
Strengthen and expand strategic partner alliances to enhance
value provided to customers
Strengthen management, measure effectiveness, and constantly
improve system quality and information security
Technology strategy
People strategy
Business model and portfolio strategy
Customer success/regional strategy
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
17
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
Business
2023–2025 Medium-Term Management Plan
Progress on business model and portfolio strategy
Priorities and key measures
Targets and KPIs
Progress in fiscal 2023
Aims for fiscal 2024 and beyond
• Strengthen development and expand Fujitsu Uvance global
standard offerings
• Establish a “One Delivery” global model centered on provid
ing Fujitsu Uvance services
• Enhance consulting capabilities in Vertical areas*1
• Strengthen delivery capabilities in Horizontal areas*2
• Develop cloud solutions to realize SX
• Enhance Consumer Experience offerings centered on GK
Software
• Based on fiscal 2022 sales, target sales of ¥400.0 billion
in Vertical areas and ¥100.0 billion in Horizontal areas,
and total revenue of ¥700.0 billion by fiscal 2025
• Aim to increase the gross margin in Vertical areas to
more than 40% by fiscal 2025
• Assuming sales expansion, capture a 5% share of the SX
market, which is expected to reach ¥8 trillion globally
by fiscal 2025
• Bolster the number of specialist personnel supporting
delivery in the Business Applications domain (including
SAP, ServiceNow, and Salesforce) from 3,000 in fiscal
2022, to 8,000 in fiscal 2025
• Aim to achieve sales of ¥100.0 billion in the Consumer
Experience domain by fiscal 2025, centered on GK
Software
• Fujitsu Uvance revenue grew 84% year on year
to ¥367.9 billion
• Accelerated availability of new offerings, partic
ularly in Vertical focus areas, with a total of 37
total Fujitsu Uvance offerings being available at
the end of fiscal 2023
• Won a number of new major business deals as
demand expanded for Fujitsu Uvance offerings—
particularly in relation to Sustainable
Manufacturing
• AI now features in 22 Fujitsu Uvance offerings
• Made a number of acquisitions, including GK
Software, a leading company in cloud solutions
for the global retail industry, with offerings
now starting to be made available in Japan
• Developed and increased the number of
accredited personnel in ServiceNow, SAP, and
Salesforce skills
• Expand global common services with stan
dardized offerings
• Aim to expand offerings to 64 types during
fiscal 2024
• Target gross margin of more than 40% for
offerings in Vertical areas by fiscal 2025
• Aim for growth driven by increased user num
bers and usage volume for offerings, from
fiscal 2025
• Strengthen regional collaboration to fully
establish Verticals internationally
• Improve delivery efficiency, quality, and speed by utilizing the
Fujitsu Developers Platform, a standardized platform for project
management and development technologies
• Advance human resource management and reskilling within
our Global Delivery Centers (GDCs)
• Increase the number and expertise of GDC- and Japan Global
Gateway (JGG)-based personnel and JGG–insourcing work
from partner organizations
• Strengthen GDC capability to support future areas of busi
ness growth areas
• Continue expanding our center of excellence for
Modernization, delivering high-quality, efficient, and speedy
modernization solutions
• Consolidate and disseminate modernization insight, standard
ize and streamline processes—sharing success patterns, and
proactively deploy horizontal technical capability including
working with partners
• Increase the number of GDC/JGG delivery personnel
from 30,000 in fiscal 2022 to 40,000 by the end of fiscal
2025
• Between fiscal 2022 and fiscal 2025, increase the proj
ect internalization rate from 59% to 64%, the offshoring
rate (i.e., GDC ratio) from 11% to 18%, and the applica
tion of standardization and automation from 30% to
45%
• Increase the ratio of GDC personnel assigned to growth
areas from 10% to 45%
• Maintain a high level of employee engagement at
GDCs
• Promote modernization and on-cloud business expansion
at a faster pace than market growth
• Increased the number of GDC/JGG personnel
to 32,000 as of the end of fiscal 2023
• Adoption of GDC increased by 3 percentage
points year on year to 14%
• Expanded standardization and automation
through use of JGG and development platform
• Enhanced visibility of resource requirements to
meet modernization demand
• Significantly increased personnel at the
Modernization Knowledge Center, a core part
of our Modernization center of excellence,
which has resulted in consolidated technical
information, know-how, and insights
• Expanded our global partnership with AWS to
accelerate customers’ modernization
• Gross margin improved 2 percentage points
year on year in fiscal 2023
• Provide Fujitsu PROGRESSION, an automated
mainframe modernization service, in Japan
• Strengthen systems to efficiently and flexibly
assign resources in line with growth and cus
tomer business priorities
• Continuously develop and expand the pool of
specialized skill personnel (Modernization
Meisters)
*1 Four Vertical areas of Fujitsu Uvance that solve societal issues: Sustainable Manufacturing, Consumer Experience, Healthy Living, and Trusted Society
*2 Three cross-industry Horizontal areas that support the Vertical areas: Digital Shifts, Business Applications, and Hybrid IT
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
18
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
2023–2025 Medium-Term Management Plan
Progress on customer success/regional strategy
Priorities and key measures
Targets and KPIs
Progress in fiscal 2023
Aims for fiscal 2024 and beyond
Customer success
Customers
• Fully establish and growth the Uvance Wayfinders consulting business, which addresses customers’
issues from both a business and technology perspective
• Deploy an enhanced value-based global pricing strategy
Organization
• Appointment of a CRO (Chief Revenue Officer) with responsibility for global customer services,
leading all regions and deploying a cross-regional strategy and governance for revenue and profit
maximization, with the main focus being on the expansion of Fujitsu Uvance
Personnel/resources
• Develop and appoint global account directors (GADs) and account general managers (AGMs) who
are capable of competing on a global stage, and implement a new operating model for global
customer accounts, designed to help our customers grow globally
• Accelerate talent acquisition from the global market—particularly in relation to consulting
Partners
• Establish global-scale go-to-market strategies with strategic partners that bring differentiated
value to customers
• Increase the number of consultants
to 10,000 by fiscal 2025 (3,000 busi
ness consultants, 7,000 technology
consultants) through reskilling of
internal human resources, hiring and
M&A
• Improve gross margin by 2 percent
age points in the Service Solutions
segment through a value-based pric
ing strategy and changes in delivery
• Accelerated GTM of Fujitsu Uvance, primarily
targeting Japan domestic customers
• Launched new consulting business brand
Uvance Wayfinders and established 13 key
consulting areas (practices)
• Enhanced reskilling of internal talent and
recruitment to expand consulting capabilities
• Increased number of consultants to approxi
mately 2,000 as of the end of fiscal 2023 (600
business consultants and 1,400 technology
consultants)
• Deployed a value-based pricing strategy
globally
• Promoted recruitment and training of GADs/
AGMs, and assigned them to accounts
• Consulting-led business growth
• Augment consulting capabilities through
talent recruitment, reskilling, and acquisition.
• Establish a proprietary certification system for
Uvance Wayfinders and develop certified
consultants with professional expertise in
13 practices
• Further promote strategic alliances
Regional strategy: Regions (Japan)
• Drive revenue growth by proposing Fujitsu Uvance offerings to customers. Understand and sup
port customers’ modernization needs—particularly those using products such as mainframe com
puters, UNIX servers, and office computers
• Expand consulting approaches and execute ideas that result in optimizing use of Fujitsu Uvance
and modernization offerings
• Transform and enhance customer-facing frontline engagement, and promote digital sales, working
in collaboration with business development and sales partners
• Strengthen information security and quality management across all customer-facing frontline
organizations in Japan and International regions, led by the CQO (Chief Quality Officer) and CISO
(Chief Information Security Officer), to reduce the number of information security incidents and
system quality issues
• Grow revenue in Regions (Japan)
from ¥1,194.6 billion in fiscal 2022 to
¥1,450.0 billion in fiscal 2025, and
increase the operating profit margin
from 12.4% to 19.3%
• Increased revenue 5.7% year on year to
¥1,262.1 billion
• Increased revenue across various sectors,
including finance, public, and healthcare
• Increased annual orders 16% year on year,
with growth driven by DX and modernization
projects
• Improved the adjusted operating profit
margin by 4.5 percentage points year on year
to 16.9%, with better profitability and a boost
from revenue growth
• Focus on expanding Fujitsu Uvance and mod
ernization, build a portfolio of reference
projects
• Accelerate reskilling of internal talent to
strengthen consulting capabilities
• Continue to enhance information security and
quality management
• Pursue added value for customers and
advance application of global rate cards
Regional strategy: Regions (International)
• Accelerate shift from traditional infrastructure-based business (MIS*1) to SaaS-based business
(BAS*2) and focus on expanding our offerings in Fujitsu Uvance’s Vertical areas
• Develop and expand our consulting capabilities and approach, adopting global methodologies
and operating model
• Create a globally integrated customer-facing organization structure
• Reskill our employees to align their expertise with future focus growth areas
• Increase the added value of services and differentiate through increased adoption of both our own
unique technology capabilities as well as our strategic alliances—implementing joint go-to-market
strategies
• Increase revenue in Regions
(International) from ¥581.7 billion in
fiscal 2022 to ¥600.0 billion in fiscal
2025, and increase the operating
profit margin from 1.8% to 3.3%
• Completed shift to services in the Americas
region, and stabilized revenue by expanding
services centered on Fujitsu Uvance
• Structural reforms are underway in the Europe
region to increase our focus on profit and
growth areas aligned to our future Service
Solutions portfolio
• Complete structural reforms in the Europe
region by fiscal 2025
• Implement structural reforms in the Asia
Pacific region
*1 Managed infrastructure services
*2 Business application services
Customers
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
19
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
2023–2025 Medium-Term Management Plan
Progress on technology strategy
Progress on people strategy
Priorities and key measures
Progress in fiscal 2023
Aims for fiscal 2024 and beyond
• Advance social implementation of the five Key Technologies through Fujitsu Uvance; in AI technol
ogy, having globally launched Fujitsu Kozuchi in April 2023, accelerate business development
through cutting-edge AI
• In quantum computing, cover all technology fields, from quantum devices to basic software and
application development, through joint research with preeminent research institutes and leading
companies worldwide
• Enhance Fujitsu’s product portfolio based on Fujitsu Uvance
• Strengthen global strategies through alliances with major partners, such as AWS, Microsoft, SAP,
ServiceNow, and Salesforce
• Accelerate research under a global structure by expanding recruitment of world-leading human
resources; actively recruit talent specializing in AI, Network, and Computing in India, and Security
in Israel
• For more details, see Technology leadership underpinned by a pioneering AI strategy
• Formulated a new AI strategy that integrates advanced AI tech
nology with Fujitsu Uvance offerings
• Launched Fujitsu Data Intelligence PaaS, bundling AI as a PaaS
offering within Fujitsu Uvance
• Gave proposals to global customers that utilize Fujitsu Kozuchi
from April 2023, conducting over 500 proof-of-concept
demonstrations
• Developed a 64-qubit superconducting quantum computer in col
laboration with RIKEN, expanding the exploration of practical
quantum applications
• Promoted global and cross-sectional collaborative industry–
academia research through Fujitsu Small Research Lab
• Further strengthen the five Key Technologies, centered on advanced AI technology
• Accelerate implementation of AI and other Key Technologies into Fujitsu Uvance
• Announced the Enterprise Generative AI Framework in June 2024, and will gradually roll
it out through Fujitsu Kozuchi
• Provide iterations of cutting-edge technologies through the Fujitsu Research Portal,
including generative AI specialized in areas like image and code generation, and genera
tive AI hybrid technology that efficiently combines multiple generative AI models
• Advance the manufacture of a superconducting gate-type quantum computer system
that was ordered in fiscal 2024, representing Japan’s first commercial quantum com
puter system by a domestic vendor, while aiming to start operations in fiscal 2025
• Continue development of FUJITSU-MONAKA, a next-generation, high-performance,
energy-efficient processor made in Japan toward achieving a carbon-neutral digital
society, targeting a release date in 2027
Priorities and key measures
Progress in fiscal 2023
Aims for fiscal 2024 and beyond
Human resources
• Advance creation of a human resource portfolio and training plans aligned with businesses
• Conduct reskilling and upskilling for personnel based on globally unified definitions of job roles
and expand resources in growth areas
• For more details, see Human resource management
• Revised the compensation system and increased compensation
levels for all employees in Japan with an eye on enhancing
medium- to long-term competitiveness
• Standardized roles globally and promoted recruitment and reskill
ing to strengthen human resources in coordination with business
units and departments, including GDCs and Business Applications
(3S), in tune with business strategies
• Held CHRO Roundtable meetings with other companies aimed at
the practical implementation of human capital management; dis
cussed and verified hypotheses based on management strategies,
initiatives, and practical HR data, and published outcomes in the
CHRO Roundtable Report
• Visualize the human resource portfolio and key positions along three axes: region, role,
and business
• Build human resource portfolios for each region
• Accelerate reskilling of internal human resources and recruitment to strengthen consult
ing capabilities
• Continue to increase personnel in key areas, including GDCs and 3S
• Expand the job-based talent management approach to new graduates and shift to a
new recruitment model
Data-driven management
• Promote the OneFujitsu Program to strengthen the management foundation and improve
productivity
• Provide customers with the value of our experience and knowledge gained by implementing an
in-house DX strategy and moving to a strengthened data-driven management, thereby promoting
DX across society
• For more details, see Data-driven management expertise
• Promoted global standardization of account management through
OneCRM
• Expanded the global deployment of OneData, a platform for
utilizing data from OneCRM, OneERP+, and other sources
• Fully launch OneERP+ at Fujitsu headquarters and Fujitsu Japan in October 2024
• Work on integrating overseas regions into OneERP+, aiming for completion by fiscal 2028
• Develop high-level IT and digital talent through the internal implementation of the
OneFujitsu Program
• Codify and reference the practical knowledge from OneFujitsu to contribute to growth
in consulting, Fujitsu Uvance, modernization, and other business areas
Technology
People
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
20
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
2023–2025 Medium-Term Management Plan
Progress toward financial targets
Fiscal 2022 results
Fiscal 2023 results
Change from fiscal 2022
to fiscal 2023
Fiscal 2024 plan
Fiscal 2025 target
Business growth and
improved profitability
Revenue
¥3,713.7 billion
¥3,756.0 billion
+1.1%
¥3,760.0 billion
¥4,200.0 billion
Service Solutions
¥1,984.2 billion
¥2,137.5 billion
+7.7%
¥2,230.0 billion
¥2,400.0 billion
Fujitsu Uvance
¥200.0 billion
¥367.9 billion
+84.0%
¥450.0 billion
¥700.0 billion
Adjusted operating profit*1
¥320.8 billion
¥283.6 billion
-11.6%
¥330.0 billion
¥500.0 billion
Service Solutions
¥162.9 billion
¥237.2 billion
+45.5%
¥280.0 billion
¥360.0 billion
Adjusted operating profit margin
8.6%
7.6%
-1.0pp
8.8%
12.0%
Service Solutions
8.2%
11.1%
+2.9pp
12.6%
15.0%
Strengthen cash
generation capabilities
Core FCF*2 (Companywide)
¥157.1 billion
¥197.2 billion
+25.5%
¥220.0 billion
¥300.0 billion
Fiscal 2019–2022
Fiscal 2022–2025
Increase efficiency of
corporate capital
EPS CAGR
12%
14–16%
*1 An indicator that represents actual profit from the core business calculated by deducting profits from business restructuring, M&As, etc., and one-off profits from changes in regulations from operating profit; previously presented as operating profit excluding special items
*2 Core free cash flow (FCF): current FCF after deducting temporary income and expenses associated with business restructuring, M&As, etc.
Revenue
Adjusted operating profit
Core FCF
In fiscal 2023, revenue increased compared with the previous
fiscal year. In the Service Solutions segment, Fujitsu Uvance
grew in addition to expansion in the DX and modernization busi
nesses, especially in Japan. In the Hardware Solutions segment,
revenue for system products increased owing in part to the
impact of fluctuations in foreign exchange rates, while for
network products, revenue declined on a pullback in demand
from strong levels in the previous fiscal year. Revenue in the
Device Solutions segment also declined amid weak demand for
semiconductor packages.
In fiscal 2023, adjusted operating profit decreased year on year.
In the Service Solutions segment, which the Group has posi
tioned as a key driver of growth, profit increased sharply on the
back of higher sales and steady improvement in the profitability
of domestic services. However, due to lower operating rates and
volumes in Device Solutions, drop in demand in network products,
and increase in costs associated with aggressive business growth
investments, profit fell on a consolidated basis.
Core free cash flow totaled ¥197.2 billion in fiscal 2023, a year-on-
year increase of ¥40.1 billion. Cash flows from operating activities
improved compared with the previous fiscal year as inventories
were reduced and accounts receivable were collected, despite an
increase in corporate tax payments due to higher profit last fiscal
year. As for cash flows from investing activities, expenditure
increased from the previous fiscal year due to increased capital
expenditures in the Device Solutions segment.
For more details, see financial strategy and business overview
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
21
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
2020
2023
2025
(Target)
(Fiscal years)
2020
2023
2025
(Target)
(Fiscal years)
2022
2023
2025
(Target)
(Fiscal years)
2022
2023
2025
(Target)
(Fiscal years)
69
69
75
75
2022
2023
2025
(Target)
(Fiscal years)
15
15
20
20
2022
2023
2025
(Target)
(Fiscal years)
–41.6%
–34.2%
–50%
–11%
69
16
+7.7
+40%
+20
–12.5%
* Category 11: CO2 emissions due to product power consumption only
GHG emissions: Supply chain Scope 3*
(Compared with fiscal 2020)
Diverse leadership
(Ratio of female managers)
Per capita productivity
(Operating income compared with fiscal 2022)
GHG emissions: Fujitsu Group Scope 1 and 2
(Compared with fiscal 2020)
2023–2025 Medium-Term Management Plan
Progress toward non-financial targets
Environment
Customers
Productivity
People
The Fujitsu Group has set targets for reducing GHG emissions as
an environmental KPI, aiming to lower Scope 1 and 2 emissions
by 50% by fiscal 2025 compared with the fiscal 2020 level. We
have achieved a 41.6% reduction as of fiscal 2023.
In order to improve the customer experience, the Group targets
a 20-point improvement in the Customer Net Promoter Score
(NPS) by fiscal 2025 compared with the fiscal 2022 level. As of
fiscal 2023, NPS had improved by 7.7 points.
As an indicator to measure sustained growth, the Group intends
to achieve its target of 75, the benchmark for global companies,
by fiscal 2025. As of fiscal 2023, this indicator was 69 points.
In addition to Scope 1 and 2, the Group has set targets for reduc
ing Scope 3 emissions by fiscal 2025, aiming to cut emissions by
12.5% compared with the fiscal 2020 level. As of fiscal 2023, we
have achieved a 34.2% reduction, surpassing this target.
The Group aims to increase adjusted operating profit per
employee by 40% by fiscal 2025 compared with the fiscal 2022
level. This metric declined 11% on a consolidated basis in fiscal
2023, but exceeded 40% in the growth area of Service Solutions.
To realize an equitable and inclusive corporate culture, the Group
tracks the ratio of women in management positions as an indica
tor of diversity in human resources, targeting a ratio of 20% by
fiscal 2025. This ratio was 16% as of the end of fiscal 2023.
(10,000 tons)
(10,000 tons)
(Points)
(Yen)
(Points)
(%)
Customer Net Promoter Score (NPS®)
(Compared with fiscal 2022)
Employee engagement
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
22
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
Understanding the relationship between financial and non-financial indicators
Outline of non-financial indicator task force and initiatives
To realize Our Purpose, the Fujitsu Group believes it is essential to maximize perfor
mance in both financial and non-financial aspects to achieve sustainable growth and
create value for customers and society. Based on this belief, the Group has inte
grated non-financial targets into the core of its business activities, and is promoting
efforts to achieve these goals along with financial targets. In the medium-term plan,
we have set targets for non-financial management indicators, such as for GHG emis
sion reductions, Customer NPS, operating profit per employee, employee engage
ment, and diversity leadership (ratio of female managers). We monitor our progress
toward these goals.
To achieve non-financial goals, it is necessary for each and every employee to
understand the importance of non-financial initiatives. Recognizing the need to clar
ify the logic of non-financial goals in order to increase understanding of their impor
tance, we established an internal task force in January 2022 composed of members
responsible for each non-financial management indicator and internal system devel
opers. This task force has facilitated robust discussions among diverse members with
varying expertise, with the intention of establishing a framework for shedding light
on and understanding the relationship between non-financial and financial indicators,
ultimately integrating these findings into business models and operations. Initially,
we used data to analyze and verify correlations and causal relationships between
non-financial and financial indicators, exploring how non-financial indicators can be
improved and their relationship with financial indicators.
In fiscal 2023, we have taken a more concrete approach to clarify the story of how
non-financial initiatives impact other non-financial indicators and financial indicators.
We established two narrative hypotheses from the perspectives of the importance
and measurability of our initiatives: one starts with human capital initiatives and
another with climate change initiatives. Based on these narrative hypotheses, we are
further analyzing and verifying the relationships between the KPIs related to each ini
tiative, non-financial management indicators, and financial indicators, such as revenue
and operating profit margin.
These initiatives are reported to the Sustainability Management Committee,
chaired by the CEO, and the results of discussions in this committee are reflected in
the task force’s initiatives.
ESG Management Platform
The Group has created the ESG Management Platform with the aim of facilitating
business decisions and organizational management, in addition to engagement with
external parties, including information disclosure, through the unified collection of
financial and non-financial indicators, as well as the visualization, analysis, and simu
lation of data. While coordinating with the task force for non-financial indicators, the
Group measures progress on financial and non-financial management indicators,
analyzes story hypotheses and visualizes the results of simulations.
This initiative is a part of data-driven management activities that the Group is
targeting, and has led to the provision of services to customers that utilize know-how
gained through practical experience internally.
Non-financial management targets and understanding the relationship between
financial and non-financial indicators
ESG Management Platform
For more details, see non-financial indicators
Purpose-driven management
Input data Financial indicators, non-financial indicators, etc.
Improve corporate value
on both financial and
non-financial sides
ESG Management Platform
Revenues / Operating profit margin
GHG emissions
reductions
Customers and society
Fujitsu and supply
chains
Starts with human capital
initiatives
Customer NPS
Starts with climate change
initiatives
Productivity
Operating profit per
employee
Diversity
leadership
(Ratio of female
managers)
Employee
engagement
Improve stakeholder
engagement
Visualize (dashboard)
Information disclosure
Response to information disclosure
External engagement
Information visualization/relationship analysis
Use in management decisions
Use in organization management
Tally
Analyze
Non-financial indicators
Narrative hypothesis
Motivation, satisfaction
Satisfaction with Fujitsu
Number of leads,
contract rate
Cost reductions
Causal relationships
and correlations
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
23
Fujitsu Integrated Report 2024
2030 vision and 2023–2025 Medium-Term
Management Plan
2023–2025 Medium-Term Management Plan
Understanding the relationship between
financial and non-financial indicators
Financial strategy
and business
overview
To achieve sustainable growth and enhance corpo
rate value, Fujitsu is pursuing a financial strategy that
emphasizes the expansion of cash generation and
optimization of capital allocation. Based on the
2023–2025 Medium-Term Management Plan, we will
steadily invest in business growth and shareholder
returns, growing Service Solutions and enhancing
profitability. At the same time, we intend to fulfill
stakeholders’ expectations by achieving our financial
targets for fiscal 2025, a milestone on the path
toward 2030.
24
Fujitsu Integrated Report 2024
77.9
77.9
86.6
86.6
97.6
97.6
(11%)
(11%)
(13%)
(13%)
105.1
105.1
(8%)
(8%)
125.6
125.6
(20%)
(20%)
140
120
100
80
0
2019
2020
2021
2022
2023
(Fiscal years)
13.5
13.5
15.1
15.1
12.0
12.0
13.5
13.5
15.2
15.2
16
14
12
10
0
2019
2020
2021
2022
2023
(Fiscal years)
Message from the CFO
We will focus on the growth area of
Service Solutions to realize sustainable
increases in corporate value.
Takeshi Isobe
Representative Director
CFO
Performance in fiscal 2023, our starting point
for growth
Looking at our consolidated financial results for fiscal
2023, revenue grew 2.2% year on year to ¥3,756.0
billion, excluding the impact of business restructuring,
and profit attributable to owners of the parent climbed
18.3% to ¥254.4 billion, reaching record highs. Adjusted
operating profit, which excludes business restructuring
and other transient factors, fell 11.6% to ¥283.6 billion,
and the adjusted operating profit margin was 7.6%. As
a result, adjusted earnings per share (EPS) came to
¥125.6, and return on equity (ROE) was 15.2%.
Honing in on performance by business segment,
revenue and profit grew substantially in Service
Solutions, which we are focusing on as a growth area.
Excluding the impact of business restructuring,
segment revenue rose 9.9% year on year. Segment
revenue in Japan increased 12.0%, sharply outpacing
the market growth rate. Revenue from Fujitsu Uvance,
a key driver of business growth, rose 84.0% year on
year, as demand related to digital transformation (DX)
and modernization buoyed business scale expansion.
In an effort to improve profitability, we pushed forward
with delivery transformation, with the standardization,
automation, and insourcing of system development.
Accordingly, the gross margin ratio improved 2
percentage points to 35%. Adjusted operating profit
increased ¥74.2 billion to ¥237.2 billion, and the
adjusted operating profit margin improved 2.9
percentage points to 11.1%. As a result, we made
progress on two fronts: expanding our scale of
business and improving profitability.
Meanwhile, in Hardware Solutions, revenue from
network products fell from the high demand levels of
the previous fiscal year. In Device Solutions, perfor
mance was significantly affected by the sluggish global
Note: The Fujitsu Group conducted a 10-for-1 stock split of its common stock effective
on April 1, 2024. Per-share information has been adjusted to reflect values after
the stock split.
(Yen)
(%)
Adjusted EPS (Growth over prior year)
ROE
Growth over
prior year
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
25
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
117.2
117.2
107.8
107.8
162.9
162.9
280.0
280.0
237.2
237.2
360.0
360.0
6.1
6.1
6.0
6.0
8.2
8.2
11.1
11.1
12.6
12.6
15.0
15.0
0
200
100
300
400
0
4.0
8.0
12.0
16.0
2020
98.2
98.2
5.2
5.2
1,984.2
200.0
1,984.2
200.0
1,928.1
1,928.1
1,804.7
1,804.7
2,137.5
367.9
2,137.5
367.9
2,230.0
450.0
2,230.0
450.0
2,400.0
700.0
2,400.0
700.0
1,873.2
1,873.2
2019
2022
2023
2024
2021
2025
(Fiscal years)
(Plan)
(Forecast)
1.6
1.6
2.2
2.2
2.3
2.3
2.1
2.1
2.6
2.6
975
975
1,600
1,600
1,841
1,841
1,783
1,783
2,490
2,490
3,000
2,400
1,800
1,200
600
0
3.0
1.8
2.4
1.2
0.6
0
2019
2020
2021
2022
2023
(Fiscal years)
market for semiconductor packages, suppressing
revenue and profits.
We made substantial headway in addressing
medium- and long-term business issues. In Regions
(International), we decided to carve out low-profit
businesses and restructure the European corporate
structure in order to transform the portfolio. In
Hardware Solutions, we established Fsas Technologies
Inc. to boost business efficiency by integrating
development, manufacturing, sales, and maintenance
functions in the domestic servers and storage system
business. Furthermore, in Device Solutions we
concluded an agreement for the transfer of shares in
SHINKO ELECTRIC INDUSTRIES CO., LTD.
The impact on profits of addressing these
medium- to long-term issues was more than ¥120.0
billion in one-time losses affecting operating profit.
However, the restructuring of the European corporate
system and other factors resulted in a tax benefit of
more than ¥140.0 billion, for a net positive effect.
We believe our share price and price book-value
ratio (PBR) at the end of fiscal 2024 will reflect the
growth of the Service Solutions segment and the
market’s evaluation of our efforts to address medium-
to long-term business challenges.
Efforts to accelerate growth in fiscal 2024
Fiscal 2024 is the midpoint of our 2023–2025
Medium-Term Management Plan (medium-term plan),
and is thus an important year in connection with our
goals. We anticipate that adjusted operating profit
from Service Solutions will increase 18% year on year
due to revenue growth and steady profitability
improvements, backed by robust growth in Fujitsu
Uvance and the modernization business. In particular,
from the viewpoint of improving profitability, in addi
tion to the ongoing delivery transformation we expect
a contribution from expanded offerings in the highly
profitable Vertical areas of Fujitsu Uvance.
We will continue investing to accelerate business
growth over the medium to long term. In fiscal 2024,
our focus will be on investing, particularly in relation
to the acquisition of consulting capabilities and the
evolution of Key Technologies such as AI. These are
essential areas for providing customers with services
that help solve social issues and create value through
Fujitsu Uvance and modernization. By stepping up
these initiatives, we aim to achieve the medium-term
plan and position ourselves for sustainable growth in
2030 and beyond.
Message from the CFO
(Billions of yen)
(%)
Progress of Service Solutions
(Yen)
(Times)
Share price / PBR
Share price (left scale)
PBR (right scale)
Revenue
Fujitsu Uvance revenue
Adjusted operating profit
(left scale)
Adjusted operating profit
margin (right scale)
Period of medium-term plan
Note: The Fujitsu Group conducted a 10-for-1 stock split of its common stock effective
on April 1, 2024. Per-share information has been adjusted to reflect values after
the stock split.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
26
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
50.1
50.1
43.3
43.3
150.0
150.0
46.1
46.1
103.1
103.1
48.4
48.4
180.0
180.0
50.0
50.0
170.0
170.0
50.0
50.0
0
60
120
180
240
2021
20.1
20.1
39.9
39.9
2020
2022
2023
2025
2024
(Fiscal years)
(Plan)
(Forecast)
200.0
200.0
300.0
300.0
202.1
202.1
2023
2024
2025 (Fiscal years)
230.0
230.0
220.0
220.0
151.5
151.5
2023
2024
2025 (Fiscal years)
Cash flow generation and capital allocation
Business growth and productivity improvements have
steadily expanded our cash flow generation capabili
ties. During the three years of the medium-term plan,
fiscal 2023 through fiscal 2025, we are targeting base
cash flow* of ¥1.3 trillion. Base cash flow, which is
the source of funds for capital allocation, includes
cash generated through asset recycling. Our capital
allocation plan remains unchanged. This plan calls for
us to allocate around ¥700.0 billion in cash flow
toward business growth investments and approxi
mately ¥600.0 billion to shareholder returns, ensuring
sustainable growth in corporate value.
Key areas of focus for our business growth invest
ments are expanding Fujitsu Uvance offerings,
enhancing consulting capabilities, conducting R&D
into advanced technologies, and strengthening man
agement foundations such as the OneFujitsu Program.
Naturally, we thoroughly monitor return on
investment (ROI). We seek to increase ROI by empha
sizing contribution to growth from a medium- to
long-term perspective, as well as short-term capital
recovery.
We view shareholder returns as total returns from
the combination of stable dividends and flexible
share buybacks. In fiscal 2023, we awarded annual
dividends of ¥26 per share, paying a total of ¥48.4
billion in dividends. This was our eighth consecutive
year of dividend increases. We also acquired ¥103.1
billion in treasury stock. Including this share buyback,
in fiscal 2023 total shareholder returns came to
¥151.5 billion, bringing the total return ratio to 60%.
We expect to continue increasing dividends for the
ninth consecutive year in fiscal 2024, awarding annual
dividends of ¥28 per share. We also plan to buy back
shares worth ¥180.0 billion, boosting total returns for
the year to ¥230.0 billion. Our plan to achieve share
holder returns of ¥600.0 billion over three years
remains unchanged.
* Cash flows including free cash flow before growth investments and lease expenses
Ensuring we achieve our targets under the
medium-term plan
In fiscal 2023, we saw steady results in the growth of
the Service Solutions segment and made progress in
addressing medium- and long-term business issues to
create a starting point for growth. We will accelerate
this growth in fiscal 2024, while at the same time
firmly promoting initiatives that will lead to sustainable
growth in fiscal 2025 and beyond.
We will continue working to craft solutions and
technologies based on our deep insight into chang
ing social issues and strive to meet the financial tar
gets set forth in our medium-term plan in order to
realize our vision for 2030.
Message from the CFO
(Billions of yen)
Progress on capital allocation
(Billions of yen)
Shareholder returns
Total dividends
Share buybacks
Original plan
Progress
(Forecast)
(Forecast)
(Plan)
(Plan)
Asset recycling
250.0-300.0
Growth
investments
700.0
Fiscal 2025
380.0
Fiscal 2024
350.0
Shareholder
returns
600.0
Fiscal 2023
303.0
Period of
medium-term plan
Base cash flow
1,300
(Fiscal 2023–2025)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
27
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
3,857.7
3,857.7
3,589.7
3,589.7
3,586.8
3,586.8
3,713.7
3,713.7
3,756.0
3,756.0
4,000
3,000
2,000
1,000
0
2019
2020
2021
2022
2023
(Fiscal years)
13.5
13.5
15.1
15.1
12.0
12.0
13.5
13.5
15.2
15.2
160.0
160.0
202.7
202.7
182.6
182.6
215.1
215.1
254.4
254.4
400
300
200
100
0
16
12
8
4
0
2019
2020
2021
2022
2023
(Fiscal years)
233.0
233.0
236.3
236.3
189.0
189.0
177.5
177.5
151.9
151.9
300
200
100
0
2019
2020
2021
2022
2023
(Fiscal years)
77.9
77.9
86.6
86.6
97.6
97.6
105.1
105.1
125.6
125.6
160
120
80
40
0
2019
2020
2021
2022
2023
(Fiscal years)
38.9
38.9
45.5
45.5
47.7
47.7
48.6
48.6
49.9
49.9
3,187.4
3,187.4
3,190.2
3,190.2
3,331.8
3,331.8
3,265.5
3,265.5
3,514.8
3,514.8
4,000
3,000
2,000
1,000
0
80
60
40
20
0
2019
2020
2021
2022
2023
(End of
ùiscal years)
275.6
275.6
320.8
320.8
283.6
283.6
7.7
7.7
8.6
8.6
7.6
7.6
500
400
300
200
100
0
10
8
6
4
2
0
2021
2022
2023
(Fiscal years)
Highlights of consolidated performance in fiscal 2023
(Billions of yen)
(Billions of yen)
(%)
(Billions of yen)
(Yen)
(Billions of yen)
(%)
(Billions of yen)
(%)
Revenue +¥42.2 billion
UP
Revenue increased mainly due to a sharp increase in orders for DX and modern
ization projects centered on the domestic market, as well as growth in revenue
from Fujitsu Uvance in the Service Solutions segment.
Profit attributable to owners of the parent +¥39.2 billion
UP
Profit attributable to owners of the parent rose to a record high, primarily owing to
the impact of lower tax expenses after recognizing deferred tax assets in connec
tion with the restructuring of our corporate structure in Europe, despite the book
ing of one-off losses arising from the execution of structural reforms centered on
business in Regions (International).
Free cash flow -¥25.5 billion DOWN
Although cash flows from operating activities increased from the previous fiscal
year due to progress made on reducing inventories and collecting accounts receiv
able, cash flows from investing activities increased, mainly from the acquisition of
GK Software. As a result, free cash flow declined.
Adjusted net profit attributable to owners of the parent per share
(EPS) +¥20.5
UP
EPS increased as a result of not only core business profit growth, but share
buybacks and other efforts aimed at improving capital efficiency.
Equity attributable to owners of the parent ratio
+1.3 percentage points
UP
Retained earnings increased mainly due to the recording of profit for the year
attributable to owners of the parent. Also, the Company repurchased ¥103.1 billion
of shares as a shareholder return measure. As a result, the equity attributable to
owners of the parent ratio increased from the end of the previous fiscal year.
Adjusted operating profit -¥37.1 billion DOWN
Although profit in the Service Solutions segment was boosted by higher revenue
and margin improvements in domestic services, among other factors, adjusted
operating profit declined overall, reflecting the impact of lower profits in network
products in the Hardware Solutions segment and the Device Solutions segment.
Profit attributable to owners of the parent (left scale)
ROE (right scale)
Total assets (left scale)
Equity attributable to owners of the parent ratio (right scale)
Adjusted operating profit (left scale)
Adjusted operating profit margin (right scale)
Revenue
Profit attributable to owners of the parent / ROE
Free cash flow
Adjusted net profit attributable to owners of the parent
per share (EPS)
Total assets / Equity attributable to owners of the
parent ratio
Adjusted operating profit / Adjusted operating profit margin
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
28
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
162.9
162.9
8.2%
8.2%
+60.2
+60.2
+35.3
+35.3
–21.4
–21.4
237.2
237.2
11.1%
11.1%
2022
2023
(Fiscal years)
Overview of operations by segment
Service Solutions
Market environment
The IT services market in 2023 saw
strong growth driven by demand for
legacy system modernization and DX.
Whereas the existing IT market, such as
traditional core systems, is expected to
gradually shrink, investment in modern
ization and cloud migration should
steadily expand going forward. Also,
investment in digitalization such as AI
and other technologies, as well as data
analysis and utilization, is expected to
expand in the future, driven by demand
for growth and development from soci
ety and corporations, as well as the
need to keep pace with changes in
social systems and industrial structures.
Revenue came to ¥2,137.5 billion (up 7.7% year on year) on the back
of strong growth in DX and modernization business primarily in Japan.
By tapping strong demand for sustainability transformation projects
and the like, Fujitsu Uvance revenue and orders increased sharply to
¥367.9 billion (up 84% year on year) and ¥449.3 billion (up 80%),
respectively. The weighting of revenue from Fujitsu Uvance as a per
centage of overall Service Solutions revenue rose from 10% last fiscal
year to 17%.
Adjusted operating profit came to ¥237.2 billion (up ¥74.2 billion
year on year). Alongside the boost from higher revenue, profitability
improved on the strength of offshoring through our Global Delivery
Centers as well as steady improvements in the standardization,
automation, and insourcing of development processes. These profit
drivers outweighed increased investments in the development of
Fujitsu Uvance offerings, the nurturing of highly skilled human
resources, reskilling, and security enhancements, and as a result,
adjusted operating profit substantially increased.
We continue to transform the business
portfolio with a view to improving prof
itability in Regions (International). (1) By
carving out the private cloud business in
Germany, we stepped up our focus on
business domains centered on Fujitsu
Uvance. (2) By withdrawing from low
profitability regions and downsizing cor
porate functions in Europe, we will con
centrate operations and improve
business efficiency, and as a result, we
expect to reap the benefits of cost
improvements from fiscal 2024 onward.
(3) By streamlining and reorganizing our
corporate structure in Europe and
establishing clear business management
systems for service and hardware busi
nesses, we aim to improve management
efficiency and strengthen governance.
We anticipate revenue growth centered
on Fujitsu Uvance and will look to
steadily capture brisk demand for mod
ernization and expand the consulting
business. Also, in overseas markets, we
will endeavor to improve profitability by
steadily realizing improvements in mar
gins with transformation initiatives.
While continuing to accelerate our hith
erto measures for improving productivity,
we will also aim to ramp up investments
for the future with a view to enhancing
consulting capabilities and developing
Fujitsu Uvance offerings. By implement
ing the above-mentioned initiatives, we
forecast growth in both revenue and
adjusted operating profit in the Service
Solutions segment, to ¥2,230.0 billion
and ¥280.0 billion, respectively.
Business review
Key topics
Fiscal 2024 earnings outlook
See page 8 for main products and services of the Service Solutions segment
(Billions of yen)
Factors behind change in adjusted operating profit
Increase in profit due
to increased revenue
(Increased revenue +192.0
Revenue growth ratio +10%)
Japan +12%
International +4%
Improvement in
profitability
(Gross margin ratio +2%)
Fiscal 2022 33%
Fiscal 2023 35%
Investment expansion,
etc.
(Development cost
of Fujitsu Uvance, etc.)
Adjusted operating
profit margin
Adjusted operating
profit margin
Revenue +192.0 / Adjusted operating profit +74.2
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
29
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
1,984.2
1,984.2
2,137.5
2,137.5
2,230.0
2,230.0
3,000
2,000
1,000
0
2022
2023
2024
(Forecast)
(Fiscal years)
407.2
407.2
480.3
480.3
530.0
530.0
600
400
200
0
2022
2023
2024
(Fiscal
years)
(Forecast)
5.0
5.0
13.7
13.7
20.0
20.0
1.2
1.2
2.9
2.9
3.8
3.8
40
20
10
0
4
30
3
2
1
0
2022
2023
2024
(Fiscal
years)
(Forecast)
147.7
147.7
213.1
213.1
240.0
240.0
12.4
12.4
16.9
16.9
17.5
17.5
240
120
60
0
180
20
15
10
5
0
2022
2023
2024
(Fiscal
years)
(Forecast)
10.3
10.3
10.3
10.3
20.0
20.0
1.8
1.8
1.7
1.7
3.7
3.7
24
12
6
0
4
18
3
2
1
0
2022
2023
2024
(Fiscal
years)
(Forecast)
1,194.6
1,194.6
1,262.1
1,262.1
1,370.0
1,370.0
1,500
1,000
500
0
2022
2023
2024
(Fiscal
years)
(Forecast)
581.7
581.7
604.1
604.1
540.0
540.0
2022
2023
2024
(Fiscal
years)
(Forecast)
0
200
400
600
800
162.9
162.9
237.2
237.2
280.0
280.0
8.2
8.2
11.1
11.1
12.6
12.6
400
200
100
0
16
12
8
4
0
300
2022
2023
2024
(Forecast)
(Fiscal years)
90
60
30
0
27.8
27.8
31.5
31.5
85.1
85.1
80.2
80.2
2022
2023
(Fiscal years)
(Billions of yen)
(Billions of yen)
(%)
(Billions of yen)
(%)
(Billions of yen)
(%)
(Billions of yen)
(Billions of yen)
(Billions of yen)
(Billions of yen)
(%)
(Billions of yen)
Overview of operations by segment
Fiscal 2023 financial results and fiscal 2024 forecast
Global Solutions
Regions (Japan)
Regions (International)
Revenue
Revenue
Adjusted operating profit /
Adjusted operating profit margin
Adjusted operating profit /
Adjusted operating profit margin
Adjusted operating profit /
Adjusted operating profit margin
Revenue
Revenue
Adjusted operating profit /
Adjusted operating profit margin
Capital expenditure / Depreciation and
amortization
Financial targets in medium-term
management plan
Fiscal 2025 revenue:
¥2.4 trillion
Of which, Fujitsu Uvance: ¥700 billion
Fiscal 2025 adjusted
operating profit:
¥360 billion
Fiscal 2025 adjusted operating
profit margin:
15%
Adjusted operating profit (left scale)
Adjusted operating profit margin (right scale)
Capital expenditure
Depreciation and amortization
Adjusted operating profit (left scale)
Adjusted operating profit margin
(right scale)
Adjusted operating profit (left scale)
Adjusted operating profit margin
(right scale)
Adjusted operating profit (left scale)
Adjusted operating profit margin
(right scale)
Service Solutions
See page 8 for main products and services of the Service Solutions segment
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
30
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
1,132.3
1,132.3
1,108.0
1,108.0
1,030.0
1,030.0
1,200
800
400
0
2022
2023
2024
(Forecast)
(Fiscal years)
83.6
83.6
7.6
7.6
12
9
6
3
0
120
60
30
0
90
2022
2023
2024
(Forecast)
(Fiscal years)
70.0
70.0
6.8
6.8
112.6
112.6
9.9
9.9
9.0
9.0
10.9
10.9
19.7
19.7
15.9
15.9
2022
2023
30
20
10
0
(Fiscal years)
Overview of operations by segment
Hardware Solutions
Market environment
Although negative growth in sales volume is fore
casted for the system products market, demand for
IT infrastructure remains firm, and the market is
expected to grow driven by rising sales prices asso
ciated with global inflation and performance
improvements.
The network products market overall is shrink
ing due to rapid contraction of the LTE market,
despite ongoing investments in 5G in the mobile
systems space. The optical transmission market is
also expected to contract with the peaking of
5G construction and a deteriorating market
environment, among other factors.
Revenue came to ¥1,108 billion (down 2.2% year
on year). Revenue in the system products business
increased 7.2% year on year mainly due to the
impact of foreign exchange effects. In contrast,
revenue in the network products business declined
32.2% owing to a continued downturn in demand
for mobile systems and photonics from the previ
ous fiscal year. We are ramping up investments in
developments for the next cycle in order to
achieve faster and higher capacity networks that
use less energy. Adjusted operating profit was
¥83.6 billion (down ¥28.9 billion year on year),
primarily reflecting the impact of lower revenue.
With the objective of strengthening the foundation
of the hardware business, particularly in the areas of
servers and storage systems, on April 1, 2024 we
launched Fsas Technologies Inc. By establishing an
integrated system from development, manufactur
ing and sales to maintenance, we will pursue speedy
decision-making and thorough efficiency in
management.
Combining our extensive lineup of offerings
with high-value-added hardware solutions that can
quickly ascertain customer needs, the entire Group
will look to provide total solutions that support the
transformation of society and corporations.
We forecast lower revenue in the
system products business, partly
reflecting the downturn in large-
scale deals for servers/storage
systems and machine upgrades to
support Japan’s new bank notes. We
expect demand for network
products in fiscal 2024 will be on
par with fiscal 2023. Owing to the
above, for the Hardware Solutions
segment, we forecast revenue and
adjusted operating profit of
¥1,030.0 billion and ¥70.0 billion,
respectively.
Business review
Key topics
Fiscal 2024 earnings outlook
(Billions of yen)
(Billions of yen)
(%)
(Billions of yen)
Fiscal 2023 financial results and fiscal 2024 forecast
Revenue
Adjusted operating profit /
Adjusted operating profit margin
Capital expenditure / Depreciation and amortization
Adjusted operating profit (left scale)
Adjusted operating profit margin (right scale)
See page 8 for main products and services of the Hardware Solutions segment
Capital expenditure
Depreciation and amortization
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
31
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
286.0
286.0
273.3
273.3
220.0
220.0
300
200
100
0
2022
2023
2024
(Fiscal
years)
(Forecast)
382.6
382.6
286.3
286.3
335.0
335.0
400
300
200
100
0
2022
2023
2024
(Fiscal
years)
(Forecast)
8.6
8.6
24.2
24.2
20.0
20.0
3.0
3.0
8.9
8.9
9.1
9.1
40
20
10
0
30
12
9
6
3
0
2022
2023
2024
(Fiscal
years)
(Forecast)
77.4
77.4
18.3
18.3
40.0
40.0
20.2
20.2
6.4
6.4
11.9
11.9
80
40
20
0
60
20
15
10
5
0
2022
2023
2024
(Fiscal
years)
(Forecast)
0.3
0.2
0.1
0
0
0
0.2
0.2
0.2
0.2
2022
2023
(Fiscal years)
90
60
30
0
(Fiscal years)
72.3
72.3
78.5
78.5
39.0
39.0
31.8
31.8
2022
2023
Overview of operations by segment
Ubiquitous Solutions
Device Solutions
Market environment
Market environment
The PC market continued to experience
negative growth in 2023, following the con
clusion of one-time demand driven by tele
work and other workplace environment
upgrades. Going forward, the market as a
whole is expected to expand, reflecting
forecasts for replacement demand for
Windows 10 support ending in 2025 and an
anticipated recovery in demand in the
domestic Japanese market, buoyed mainly
by PC replacement demand for the GIGA
School Program in the education market.
The delayed recovery of the PC, server, and
smartphone markets, as well as concerns
over a prolonged adjustment in semicon
ductor inventories, will likely persist going
forward, but there are also expectations for
a recovery in chip demand fueled mainly by
the proliferation of AI services. Also, with
the increasing importance of semiconduc
tors as a key technology supporting
advancements in DX and green transforma
tion for a carbon-neutral society, global
competition in this sector is expected to
further intensify.
Revenue was ¥273.3 billion (down 4.4% year on
year). As a result of efforts to cut costs and imple
ment cost pass-alongs in response to the higher
prices of components, including the impact of for
eign exchange effects, adjusted operating profit
surged to ¥24.2 billion (up ¥15.5 billion, or 178.4%,
year on year). Also, in April 2024 we withdrew from
the client computing devices (CCD) business in
Europe due to the intensely competitive environ
ment, in which we struggled to turn a profit. Owing
to this withdrawal, we forecast a decline in revenue
in fiscal 2024.
Revenue was ¥286.3 billion (down 25.2% year on
year). Demand for semiconductor packages was
brisk through the first half of fiscal 2022, but slowed
significantly in the second half and remained weak
throughout fiscal 2023. As a result, coupled with a
downturn in plant operations owing to reduced
volume, adjusted operating profit came to ¥18.3
billion (down ¥59.0 billion year on year). Also, in
December 2023 the Group announced the conclu
sion of an agreement regarding the transfer of the
shares of SHINKO ELECTRIC INDUSTRIES CO., LTD.
As a result of the share transfer, SHINKO ELECTRIC
INDUSTRIES is scheduled to be removed from the
Group’s consolidated subsidiaries.
Business review and key topics
Business review and key topics
(Billions of yen)
(Billions of yen)
(Billions of yen)
(%)
(Billions of yen)
(%)
(Billions of yen)
(Billions of yen)
Fiscal 2023 financial results and fiscal 2024 forecast
Fiscal 2023 financial results and fiscal 2024 forecast
Revenue
Revenue
Adjusted operating profit /
Adjusted operating profit margin
Adjusted operating profit /
Adjusted operating profit margin
Capital expenditure /
Depreciation and amortization
Capital expenditure /
Depreciation and amortization
Adjusted operating profit (left scale)
Adjusted operating profit margin
(right scale)
Adjusted operating profit (left scale)
Adjusted operating profit margin
(right scale)
See page 8 for main products and services of the Ubiquitous Solutions segment
See page 8 for main products and services of the Device Solutions segment
Capital expenditure
Depreciation and amortization
Capital expenditure
Depreciation and amortization
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
32
Fujitsu Integrated Report 2024
Message from the CFO
Highlights of consolidated performance in fiscal 2023
Overview of operations by segment
Progress and
outlook
in focus areas
Setting its sights on 2030 and beyond, Fujitsu is
expanding its digital services centered on Fujitsu
Uvance, strengthening its consulting capabilities to
enhance its competitiveness, and executing its AI
strategies. We are also promoting modernization and
delivery transformation that will contribute to cus
tomer DX and SX. We will achieve sustainable growth
and enhance corporate value by simultaneously pro
viding new value to our customers and pursuing our
own innovation.
33
Fujitsu Integrated Report 2024
We develop overall vision through consulting-led approach and deploy comprehensive measures to realize
management and business transformation of customers
Strengthening of consulting capabilities
Shunsuke Onishi
Corporate Executive Officer,
Corporate Vice President,
COO (in charge of Regions), CRO,
Head of Global Customer Success,
Co-CEO, Japan Region
(in charge of Enterprise & Business transformation)
* Revenue
We aim to offer higher value-added services
by combining the Group’s accumulated
knowledge and technological capabilities with
consulting skills.
Launch of Uvance Wayfinders
Under the 2023–2025 Medium-Term Management
Plan, the Group has prioritized the expansion of
consulting services as part of its customer success/
regional strategy. This focus is driven by our vision
of being a technology company that realizes a net
positive for society by 2030. Achieving this vision
requires a consulting approach that can compre
hensively understand and address issues. In the
medium-term plan, the Group has announced its
target of expanding to approximately 10,000
consulting personnel by the end of fiscal 2025. In
February 2024, the Group launched a new brand for
the consulting business called Uvance Wayfinders,
conveying to the market our commitment to
expand the consulting business and establish a
robust consulting structure.
We are working to expand the consulting business
for the following three reasons. First, as industrial struc
tures evolve and issues become more complex and
diverse, we aim to contribute to solving issues in cross-
industry domains, where knowledge from various sec
tors and fields is essential. Second, as technologies
such as AI and quantum computing have a growing
impact on industries, we intend to create innovative
business models with customers, leveraging our
strengths as a technology company engaged in R&D.
Third, we aim to offer higher value-added services by
combining the Group’s accumulated knowledge and
technological capabilities with consulting services.
Business model transformation
Business transformation
Societal issue resolution
• Set the transformation agenda with customer CxOs
• Develop plans that balance solving societal issues
with economic viability
• Form cross-industry ecosystems
• Lead transformation by leverag-
ing technology expertise and
practical knowledge
Outcomes
Strategy and vision planning
New
business
model
Business
consulting
• Lead AI-driven transformation
• Develop new business models with advanced
technology (e.g., quantum)
Technology
consulting
Transform business with data
× AI and boost productivity
Modernization
Implement individual system
integration (SI)/IT solutions
Solve specific issues
with IT solutions
Detail system plans based on customer requirements
Build a resilient supply chain
Realize a circular economy
Optimize business operations
aligning with strategic goals
Conventional
IT services
Execution of transformation
Revamp foundations to
support transformation
Engage top management to drive multiple key transformation agendas
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
34
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Strengthening of consulting capabilities
Example of consulting-driven services provided to
a customer
Taisei Corporation came to view information as a new man
agement resource, including digital technology and data
utilization, and embarked on digital transformation (DX) in
2020 with the goal of making data-driven management
decisions and enhancing operations. Fujitsu’s support for
Taisei’s DX initiative was kicked off with consulting services
which culminated in the building of a data asset utilization
platform called Taisei-Data as a Service (Taisei-DaaS) in
2021 and its operational launch in 2022.
The first step supported by our consultants was the
development of an implementation plan for Taisei-DaaS.
This included identifying needs in multiple departments
where utilization was anticipated, clarifying overall IT envi
ronment requirements, establishing rules and processes
aimed at promoting collaboration between developers and
operators, and detailing the steps necessary to make this
happen. This process helped to foster a shared ownership
among stakeholders.
In fiscal 2021, we kicked off the Taisei-DaaS launch proj
ect, which included the data engineering team. Under the
management of the consultants, the platform was built
through a repeated process of short development and test
ing cycles, resulting in its operational launch in early fiscal
2022. Even after the launch, the consultants remained
involved in advocating for data utilization, such as data
democratization, and continued to support Taisei’s DX
efforts aimed at enhancing corporate value.
Consulting-driven business model transformation
Transforming business models is one of the objec
tives in our launch of Uvance Wayfinders. Uvance
Wayfinders goes beyond traditional business consult
ing and technology implementation by leveraging
the Group’s own cutting-edge technologies, such as
AI, to provide technology-driven consulting services
for conceptualizing the transformation of business
models. Fujitsu intends to lead the formation of
cross-industry ecosystems and the co-creation of
new digital services, ultimately contributing to solu
tions for societal issues and customers’ management
and business issues, including the realization of more
resilient social systems and a circular economy.
By approaching issues through consulting
grounded in technology and execution capabilities,
the Group aims to enhance the profitability of its
consulting business. Additionally, we seek to increase
the value we provides and broaden revenue streams
by leading the transformation of business through
the effective introduction of Fujitsu Uvance and
modernization solutions tailored to specific issues.
Business plan
In fiscal 2023, the Fujitsu Group’s consulting business
generated approximately ¥30.0 billion in revenue,
with a gross margin of around 30%. By fiscal 2025, the
Group aims to increase revenue in the consulting
business to approximately ¥180.0 billion and improve
the gross margin to 50%. To achieve this, we plan to
expand the number of consulting personnel to about
10,000 people by the end of fiscal 2025, sourcing
talent both internally and externally. Furthermore, the
Group aims to significantly scale up Fujitsu Uvance
and the modernization and digital service businesses,
driving this growth through consulting services, from
a revenue base of approximately ¥10.0 billion in fiscal
2023 to ¥280.0 billion in fiscal 2025. The Group aims
to enhance profitability by increasing the proportion
of consulting that leads to projects for high-margin
businesses centered on Fujitsu Uvance’s Vertical areas,
and shifting from a labor-intensive business model to
collaborative and recurring business models.
Strengthening our consulting capabilities
To achieve our business plan, we are expanding our
headcount in the consulting business. As of the end
of fiscal 2023, the Group had approximately 2,000
consultants, comprising around 600 business consul
tants and 1,400 technology consultants. By the end of
fiscal 2025, we plan to increase this to 3,000 business
consultants and 7,000 technology consultants. To
support this expansion, the Group will invest approxi
mately ¥20.0 billion in fiscal 2024, linking its consulting
business strategy and human resource strategy. This
investment will focus on reskilling employees and
stepping up recruitment efforts both in Japan and
abroad in order to acquire the necessary talent.
Of the planned 10,000 consultants, about 7,000
consultants are expected to be reskilled employees.
We are targeting knowledgeable and experienced
system engineers (SEs) and business producers (BPs)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
35
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Strengthening of consulting capabilities
for reskilling, not only through training programs but
also through practical experience via on-the-job
training (OJT) to enhance their consulting capabilities.
Additionally, we have set up a certification system to
assess whether individuals are capable of delivering
value to clients, ensuring the quality of our
consulting services.
In our recruitment activities,
amid intense competition for
experienced consultants, we
emphasize several key high
lights for working at the Fujitsu
Group: the opportunity to
engage in transformative proj
ects utilizing advanced technol
ogies; the chance to quickly gain experience in
solving complex, intertwined societal issues; and our
leading position in the domestic IT services market,
which opens up access to decision-makers across a
wide range of customers.
Furthermore, through our Center of Excellence (CoE)
for consulting, we are building systems to share
consulting knowledge globally, which supports the
professional development of our talent and continu
ously enhances the quality of Uvance Wayfinders.
Our current position and outlook
The Group has already instituted the Uvance
Wayfinders certification system and introduced a
human resource system for consultants. Our first
group of certified consultants began to make their
mark in the market as of January 2024. The reskilling
program also began in December 2023, with about
100 employees each month learning and honing their
consulting skills in real-world scenarios. Our certified
consultants have started to develop markets, steadily
expanding our pipeline of projects.
While the market for talent acquisition remains
intensely competitive, presenting challenges in
recruiting new hires, as of August 2024 Fujitsu has
increased its consulting workforce to 2,500 person
nel, achieved ¥8.7 billion in consulting business reve
nue, and generated ¥6.0 billion in revenue from
Fujitsu Uvance and related businesses through
consulting leads. The size of our consulting workforce
is now comparable to that of major consulting firms
in Japan, and we are seeing positive signs of growth.
Looking ahead, we anticipate tough competition
for recruiting talent as companies seek to hire more
types of consultants, such as cloud service providers
expanding their recruitment of cloud consultants and
consulting firms increasing their focus on hiring gen
erative AI consultants. Nevertheless, with increased
fluidity in the job market, as evidenced by the recent
layoffs announced by firms both domestically and
internationally, we believe there are ample opportu
nities to recruit sizeable numbers of consultants.
From a business perspective, competition in
technology-driven consulting is becoming increas
ingly tough, especially as major strategy consulting
firms strengthen their presence in the digital field.
However, Fujitsu is well-positioned to capitalize on
these opportunities and drive business expansion by
leveraging its ability to identify issues through a
cross-industry approach linked with Fujitsu Uvance,
and pursuing M&As overseas under a globally
coordinated strategy led by headquarters.
In fiscal 2024, the Group will establish a consulting
business framework in each region. In North America,
we will focus on recruiting partner-level professionals
and teams that will shape the core of its consulting
business, and launch several consulting practices, such
as Customer Experience (CX). In the Asia Pacific region,
we will expand the certifications of consultants, partic
ularly those from companies acquired through M&As,
and globally utilize their expertise in areas like security
consulting. In Europe, we will actively pursue M&As to
complement our consulting capabilities and accelerate
the development of Fujitsu Uvance. In Japan, we will
enhance our consulting approach for key clients, which
should strengthen our client portfolio. The CoE for
consulting, which oversees all regions, will develop
consulting service offerings, consolidate knowledge,
and provide training.
In fiscal 2025, we aim to establish competitive
advantages by expanding this system globally and
through consulting grounded in technology and
execution capabilities. Looking forward to 2030, as
technology increasingly reshapes the nature of
business, Uvance Wayfinders, with technology in their
DNA, will lead us to a new era in consulting.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
36
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Growth scenario for Fujitsu Uvance
Yoshinami Takahashi
Corporate Executive Officer,
Corporate Vice President,
COO (in charge of Fujitsu Uvance),
Head of Global Solutions
By providing unique and high-value-added
offerings, we will achieve sustainable growth
and transform our business model.
Significance of Fujitsu Uvance
Fujitsu Uvance was inspired by societal issues such as
carbon neutrality that can only be resolved by tran
scending industry boundaries, and aims to provide
cross-industry offerings that help customers imple
ment both business and social solutions. The
medium-term plan sets a revenue target of ¥700.0
billion for Fujitsu Uvance by fiscal 2025.
Fujitsu Uvance also represents the transformation
to a new business model. To provide Fujitsu Uvance,
we need to renew the Fujitsu Group, which has long
been optimized for the system integration (SI)
business. This renewal needs to happen at all
levels—in our organizational culture, the value we
provide to customers, business processes, and per
sonnel evaluation and compensation systems. We
also need to foster substantial behavioral changes on
the part of each employee.
Fujitsu Uvance’s competitive advantages
The first advantage of Fujitsu Uvance lies in the value of
the Group’s proprietary offerings to its customers. Fujitsu
Uvance provides wide-ranging values including supply
chain optimization across industries such as manufactur
ing, logistics, and retail; automation and improvement of
operations using AI; and visualization and advanced
decision-making support by integrating various business
applications and data throughout the enterprise. These
values help our customers achieve both economic
streamlining and sustainability, which in turn help them
transform their management and business.
Difference between SI and offerings
SI involves tailoring development to meet the individual
service requirements of each customer. In contrast to this
one-to-one approach, Fujitsu Uvance involves one-to-many
(1:N) offerings. Under this model, services developed
through hypothesis testing with multiple customers are
deployed to other customers via the cloud. Within a given
framework, we customize our offerings to meet customers’
needs, and continuously expand and improve the function
ality of our offerings based on customer feedback. This
allows our customers to implement best practices in a rela
tively short period of time in the form of offerings, even for
issues for which requirement definition is difficult. For the
Fujitsu Group, 1:N deployment increases productivity and
enables sales growth independent of delivery resources.
The relationship with the customer is also different. In SI, an
IT system is developed based on the definition of require
ments. We receive compensation when the system is deliv
ered, and the transaction is then complete. With Fujitsu
Uvance offerings, revenue recurs and is recorded based on
when and how much the offerings are used.
SI business
Fujitsu Uvance
Development
method
Contract development
based on customer
requirements
Development of offer
ings through hypothesis
testing with customers
Deployment
1:1 (by individual
company)
1:N
Sales method
Sale ends once IT
system is delivered
Recurring sales, due to
ongoing provision of
offerings
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
37
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Fujitsu Uvance and Materiality
Fujitsu Uvance, which is inspired by societal issues, is
aligned with Fujitsu’s Materiality, or “essential contri
butions,” which were identified by extracting, organiz
ing, evaluating, and examining societal issues to be
solved through Fujitsu’s businesses and the values to
be provided to customers and society toward the
year 2030. Fujitsu Uvance’s growth is directly linked
to the promotion of Materiality. Fujitsu Uvance can be
thought of as a business model that delivers offerings
that contribute to solving global environmental issues
(Planet), developing a digital society (Prosperity), and
improving people’s well-being (People).
When we develop and provide offerings, we
ensure linkage with our Materiality by clearly defining
the value of the offerings based on societal issues to
be solved. In our proposals to customers and presen
tations to the public, we make a thorough effort to
build scenarios around such issues. In addition, Fujitsu
Uvance continuously works to foster understanding
among employees by including information in train
ing programs for business producers (BPs) in front
office sales division, who are responsible for making
proposals to Fujitsu Uvance customers, about how to
propose offerings systematized from the viewpoint of
Materiality. In this way, we are continuously working
to cultivate employees’ understanding.
Progress on operating performance
In fiscal 2023, which marked our full-fledged launch
of offerings in Vertical areas, revenue from Fujitsu
Uvance surged 84% year on year to ¥367.9 billion,
rising as a percentage of revenue in the core Service
Solutions segment from around 10% in the previous
fiscal year to approximately 17%. Driven by expanded
offerings, notably in the area of Sustainable
Manufacturing, we obtained large-scale business
deals that caused revenue from Vertical areas to soar
¥101.3 billion year on year. Meanwhile, Horizontal
areas also expanded steadily, as our ability to
respond to strong demand led to the acquisition of
large business deals in Business Applications both in
Japan and overseas, mainly from the manufacturing
industry.
The second advantage is time. Fujitsu Uvance’s
approach allows customers to be flexible in expand
ing the scope of implementation and to confirm
effectiveness in short cycles, rather than a process
that takes years to go from requirement definitions to
development, implementation, and measurement of
effectiveness. By taking a consulting approach
toward organizing issues and requirements, utilizing
standardized offerings, and leveraging our experi
ence in implementing them, we can deliver tangible
results to our customers quickly, getting offerings up
and running in as little as a several weeks.
Third is our ability to implement offerings based on
a deep awareness of customers’ IT assets. We have
years of accumulated knowledge of customer opera
tions. We leverage this understanding to propose the
best ways of integrating standardized Fujitsu Uvance
offerings into their existing systems. The capabilities
we have honed through our SI business lead to a high
success rate with Fujitsu Uvance and increase the
speed of implementation of our offerings.
Finally, consulting services represent a competitive
advantage that we will strengthen further going for
ward. We are focused on reinforcing our consulting
capabilities to provide solutions in areas such as sus
tainability transformation (SX), where customers may
have difficulty resolving issues on their own. Through
consulting, we maintain a dialogue with our customers
even after offerings have been deployed to provide
enhancements and ensure ongoing customer success.
46
Number of offerings in fiscal 2023
Growth scenario for Fujitsu Uvance
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
38
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
200.0
200.0
185.0
185.0
15.0
15.0
251.5
251.5
116.3
116.3
367.9
367.9
270.0
270.0
180.0
180.0
450.0
450.0
300.0
300.0
400.0
400.0
700.0
700.0
(Billions of yen)
aiming to reach ¥700.0 billion in revenue, our target
under the medium-term plan.
Global rollout
To expand Fujitsu Uvance in overseas markets, where
the Group has fewer resources than in Japan, a dedi
cated organization was established in Regions
(International) in fiscal 2023. In collaboration with
Groupwide measures to reinforce consulting, we built a
structure capable of proposing and receiving orders for
offerings in Vertical areas, in particular. In addition, by
establishing a delivery model for each offering and
thoroughly standardizing the development and imple
mentation process, we are developing a system to
deploy Fujitsu Uvance globally.
While demand in Regions (International) is strong
and sales are growing steadily, in Horizontal areas
price competition is fierce and improving profitability
is an issue. Working region by region, we intend to
migrate from overly optimized services to common
global offerings with high added value. At the same
time, we will work to heighten competitiveness and
improve profitability. Specifically, we will focus on
security, a growth area, and expand sales of Fujitsu
Data Intelligence PaaS (DI PaaS), an operations
platform that leverages data and AI.
In addition, we will take various measures to
reinforce our structure for SAP, Salesforce, and
ServiceNow (3S), which enjoy strong demand. These
efforts will include the global development of high-
value-added services such as consulting and M&As.
For example, with ServiceNow, we combine our
Customer Advisory and Support Excellence advisory
service, which supports continuous improvement
from platform utilization to strategic planning, with
ServiceNow's ServiceNow Impact to maximize the
value of offerings on the ServiceNow platform for
our customers.
Offerings in Vertical areas and the Digital Shifts field
will drive future growth. We will continue to
strengthen our offerings in fiscal 2024, particularly in
areas such as supply chain management, AI, and data
utilization, where we believe the market will increase.
While we expect offerings to expand to some extend
in fiscal 2024, from that point we plan to focus simul
taneously on increasing the number of users of exist
ing offerings and the value of those offerings. In
fiscal 2025, we will continue to focus on achieving
growth by augmenting sales and profit per offering,
Growth scenario for Fujitsu Uvance
Percentage of
total revenue
(Fujitsu Uvance /
Service Solutions)
Revenue
increase
Status of Fujitsu Uvance
2024 (Plan)
2025 (Plan)
(Fiscal years)
2022
2023
Fujitsu Uvance
Vertical
Horizontal
10%
¥200.0
billion
17%
¥367.9
billion
Up 84%
Up 22%
20%
¥450.0
billion
30%
¥700.0
billion
Period of medium-term plan
Up 56%
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
39
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
services market by proactively adopting the latest
technologies and global best practices, and to pro
vide customers with advanced, global-standard ser
vices and solutions to drive sustainable growth. In
addition to the above-mentioned partnership with
ServiceNow, in fiscal 2023 we formed a global part
nership with Palantir Technologies Inc. to incorporate
and offer AI and data integration capabilities as the
offering’s data foundation. As Japan’s first premium
supplier for SAP, we have a wide range of partner
ships in place. These include the development and
provision of a comprehensive cloud ERP solution
called RISE with SAP, a premium supplier option via
Higher with Fujitsu, which we provide as an offering
in Horizontal areas.
The Group’s focus in these strategic partnerships is
to add more value by leveraging its unique intellec
tual property (IP). By combining Fujitsu’s proprietary
technologies and services with the platforms and
solutions offered in the cloud by global players such
as 3S, Microsoft, and AWS, we provide offerings that
address our customers’ problems and create added
value unique to the Group. We have developed a
number of in-house technologies to leverage Fujitsu
Kozuchi, our suite of AI services. For instance, Fujitsu
AutoML automatically creates predictive models from
data, and Fujitsu Kozuchi for Vision recognizes human
behavior and facial expressions from video images. AI
Trust is designed to address the hallucinations that
can occur with generative AI and the hostile attacks
that can trick AI. Even as we work to expand Fujitsu
Uvance’s offerings globally, we will continue to con
centrate on rapidly expanding our scale by leveraging
the extensive knowledge of our global partners.
Value-based pricing
In the SI business, conventional practice is to esti
mate pricing based on the total amount of labor and
other costs required for system development. In con
trast, many of Fujitsu Uvance’s offerings use a pricing
model centered on the monetary value provided to
customers, or a pay-as-you-go model based on the
quantity of computing resources used.
The components of monetary value can be broadly
divided into cost savings realized by the customer and
the benefits the customer derives from increased sales.
In the planning stage of an offering, we hypothesize its
effect in order to calculate the monetary value to the
customer. We then repeatedly confirm the veracity of
the hypothesis, thereby improving the accuracy of
the pricing.
We began planning and developing products with
actual value-based pricing in the second half of fiscal
2023. Of the approximately 30 offerings in Vertical
areas we have launched since then, two-thirds use
value-based pricing. We plan to continue making
value-based pricing more adaptable, focusing on
newly developed offerings, and reflect in our pricing
the greater value we provide to customers through
functional enhancements.
Strategic partnerships
In recent years, the Group has accelerated its strate
gic alliances with global solution and application
vendors, led by 3S. The strategic idea behind this
focus is to respond quickly to changes in the IT
Examples of added value created through
strategic partnerships
In May 2024, the Fujitsu Group and ServiceNow announced
a strategic partnership to deliver innovative cross-industry
offerings. Through this partnership, we plan to combine
ServiceNow’s digital business platform with Fujitsu Uvance
by utilizing the Fujitsu Group’s extensive expertise in a vari
ety of industries. For example, combining our AI service
suite Fujitsu Kozuchi with ServiceNow’s Now Assist will
enable us to automatically generate bodies of Q&A by pre
dicting problems based on an analysis of response trends
and ascertaining operator responses. We expect this offer
ing to revolutionize helpdesk operations and significantly
improve efficiency in the service industry.
In this way, the Group will go beyond the development
of offerings based on ServiceNow’s knowledge. Instead, to
increase the value provided to customers we will share our
product development road map and ServiceNow will dis
patch dedicated Fujitsu personnel to develop offerings. In
addition to collaborating in sales, marketing implementa
tion, and delivery, we are introducing ServiceNow’s training
program to all Fujitsu Group employees, aiming to enhance
added value through human resource development.
Growth scenario for Fujitsu Uvance
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
40
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Fujitsu Uvance’s key offerings
Name of offering
Domain, type
Services and value provided to customers
Target customer
Utilization of Fujitsu’s proprietary
technologies and knowledge
Marketability, including potential for
global expansion
Dynamic SCM*
* Supply chain
management
[Vertical]
This Sustainable Manufacturing
offering aims to advance data
utilization and process transfor
mation throughout the supply
chain. It utilizes Horizontal DI
PaaS.
• In addition to Vertical integration by
industry sector, such as manufacturing,
logistics, and retail, through Horizontal
(i.e., cross-industry) integration sup
ports common supply chain manage
ment issues, such as demand
forecasting, improving the accuracy of
production planning, timely coordina
tion with suppliers and business part
ners, and recovery from problems
• Visualizes management indicators of
sales expansion and indicators of on-
site management
• Helps to improve management effi
ciency and profitability by optimizing
the entire supply chain
• Supports high-level decision-making to
ensure that resilience and ESG factors
are considered, in addition to matters
of economic rationality and efficiency
Mainly large manu
facturing companies
with numerous
suppliers
• Integrates all industry knowl
edge related to manufacturing,
logistics, and retail
• Uses DI PaaS to collect and cal
culate data throughout the
Company, which is necessary to
visualize management indicators
and on-site management
metrics
• Utilizes Fujitsu Kozuchi AI for
demand forecasting and delivery
planning optimization
• In a rapidly changing and
difficult-to-predict future, the
need for supply chain manage
ment is high and growth in this
area is expected to be higher
than in other Vertical areas.
• Supply chain management
embodies a wide range of
decisions. Once a customer
adopts this offering, we antici
pate ongoing sales increases
and corresponding growth in
the scope of services.
• We plan to prioritize the over
seas expansion of this offer
ing, as it addresses issues that
are urgent globally, as well as
in Japan.
Fujitsu Data
Intelligence PaaS
(DI PaaS)
[Horizontal]
This Digital Shifts offering real
izes data-driven management,
using an all-in-one operating
platform.
• One-stop shop for data infrastructure,
AI, and blockchain
• Meaningfully integrates vast amounts of
data inside and outside the enterprise,
such as company locations and suppli
ers, and enables the use of business-
specific AI, including highly accurate
demand forecasting, to support
decision-making
• Achieves data integration without
requiring the modification of existing
systems
• Through integrated collaboration and
analysis of data fragmented among
industries, promotes cross-industry
co-creation among companies and
contributes to SX and the resolution of
social issues for our customers
Customers of all
sizes, in various
industries
• Augments Fujitsu Kozuchi with
in-house technologies such as
Fujitsu AutoML, which automati
cally creates predictive models
from data, and AI Trust technol
ogy, which addresses hallucina
tions from generative AI and
hostile attacks that can trick AI
• Integrates Fujitsu Track and
Trust, a blockchain technology
that enables data collaboration
and traceability across compa
nies and industries
• Reflects the knowledge and
insights acquired and accumu
lated through the in-house prac
tice of data-driven management
in professional services including
consulting, implementation, and
operational support
• Given the rapid spread of gen
erative AI, we expect
increased demand for PaaS
that enables data integration,
which is a prerequisite for AI
utilization.
• We are expanding overseas,
building on our track record
with large manufacturers and
other companies in Japan. In
addition to DI PaaS, we will
cultivate global technology
consultants to support imple
mentation and offer services.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
41
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Technology leadership underpinned by a pioneering AI strategy
A commitment to drive technology innovation
Our strength lies in our ability to provide new value
to customers based on independently developed
cutting-edge technologies, while proactively incor
porating external technologies. We are focusing our
resources on developing five Key Technologies: AI,
which has been under development since the 1980s,
complemented by computing, data & security, net
working, and converging technologies that combine
digital technologies and the humanities.
Generative AI is rapidly expanding in business
applications, and its growth has been explosive. In
response to this trend, we announced the Fujitsu AI
Strategy in February 2024, reinforcing our objective
to become a top global player in the drive to get
enterprises to adopt generative AI, by focusing on AI
models tailored to enterprise needs. Specifically, we
are enhancing the value we provide to customers by
offering the cloud-based AI platform Fujitsu Kozuchi
as a part of Fujitsu Uvance.
To carve out a leading position in the fiercely com
petitive new technology arena, we believe that speed
and agility are key—delivering developed technolo
gies to customers quickly, gathering feedback and
turning this into fast-track improvements. Featuring
our cutting-edge AI technology, Fujitsu Kozuchi is a
set of “ready-to-use” AI solutions that embodies this
approach. Since its release in April 2023, we have
conducted approximately 500 proposal activities and
proof-of-concept demonstrations for customers.
Based on our accumulated knowledge and insights
from these activities, we have continuously evolved
the platform to meet customer needs, culminating in
its commercial launch in February 2024. We continue
to expand our lineup of offerings and accelerate its
integration into Fujitsu Uvance.
Vivek Mahajan
Corporate Executive Officer,
Corporate Vice President,
CTO, CPO,
in charge of System Platform
* Technology * Portfolio
Fujitsu aims to become a top global player in
driving the adoption of generative AI in
enterprises. It is realizing this ambition by
accelerating the comprehensive implementation
of AI into Fujitsu Uvance offerings.
Evolution tailored to enterprise needs
The Generative AI Framework for Enterprises, a new
addition to the Fujitsu Kozuchi lineup, launched in July
2024. This framework combines and links three of our
proprietary technologies: Knowledge Graph*1
Extended RAG,*2 Generative AI Amalgamation
Technology, and Generative AI Audit Technology. This
approach generates specialized generative AI auto
matically that flexibly responds to corporate needs,
enables the resolution of issues associated with the
handling of large amounts of corporate data, and
provides output that can be explained in compliance
with laws, regulations and corporate rules.
Fujitsu’s aim is to realize a sustainable society
where customers can safely use AI, and to this end,
we are also advancing R&D and conducting proof-of-
concept demonstrations that enhance AI trustworthi
ness. One example is our proprietary AI trust
technology, Fujitsu AI Ethics for Fairness, which veri
fies and improves the impartiality of AI models. This
technology is integrated into the AI core engine of
Fujitsu Kozuchi, enabling people who are not special
ists in AI ethics and do not have programming skills
to verify and improve AI fairness.
In May 2024, Fujitsu released Fugaku-LLM, a large-
scale language model (LLM) trained on the super
computer Fugaku. We are encouraging its use in
innovative scientific research and business applica
tions. Additionally, in July 2024, Fujitsu announced a
strategic partnership with Canadian startup Cohere
Inc., which has a proven track record in enterprise AI,
to provide generative AI solutions for companies.
Together, we co-developed Takane, an enterprise LLM
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
42
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Technology leadership underpinned by a pioneering AI strategy
with excellent Japanese language support, and began
offering it to Japanese companies in September 2024,
leading the adoption of generative AI in enterprises.
*1 A network of various knowledge systematically represented in a graph structure
*2 Retrieval Augmented Generation
Research and development to adapt to
changing times
Fujitsu continuously engages in future-oriented tech
nology development. Some major examples of our
technological leadership are FUJITSU-MONAKA, a
next-generation, energy-efficient processor that
inherits our high-performance computing (HPC)
know-how gained with Fugaku; the AI Computing
Broker, which has the potential to halve the power
consumption of AI processes in data centers; inte
grated analysis technology for authenticity checks in
security fields; social digital twin technology for
devising measures that balance environmental, social,
and economic perspectives; and quantum computing
technology for developing a 256-qubit quantum
computer by fiscal 2024 and more than 1,000-qubit
quantum computers from fiscal 2026. Through the
ongoing development of our five Key Technologies
centered on AI, we aim to create exceptional levels of
new value that is unmatched by other companies,
and as a result, directly contribute to the realization
of a sustainable society.
Sustainable world
Fujitsu Uvance
Planet
Computing
Converging
Technologies
Prosperity
AI
Business issues
People
Network
Data & Security
5 Key Technologies
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
43
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Growth potential of modernization
What is modernization?
Modernization entails the upgrading of so-called
“legacy” systems, which were developed with older
technology and optimized for individual companies or
operations, to the latest technologies. Modernization
enhances the scalability, innovativeness, and cost effi
ciency of IT assets, facilitating DX that enables data-
driven management, and the success of SX.
At the Fujitsu Group, we view modernization as
encompassing four steps: 1) the visualization of assets,
including business operations, applications, processes,
infrastructure, and data; 2) the formulation of a grand
design; 3) the streamlining of the overall information
system; and 4) modernization, which includes migrat
ing systems to an optimal IT infrastructure and prepar
ing for further DX realization.
Fujitsu’s competitive advantages
Fujitsu’s competitive edge lies in its technical expertise
accumulated through the development and building of
large-scale core information systems, its knowledge of
mainframes developed and manufactured in-house,
and the depth of its engineering workforce that applies
these technologies and knowledge in the provision of
comprehensive services. Additionally, our extensive
experience and track record in modernization, DX, and
SX, including our in-house implementations, have
afforded us excellent project proposal and execution
capabilities in the DX and SX fields. Furthermore, Fujitsu
boasts the largest customer base in Japan, including
customers using Fujitsu-made mainframes.
The domestic modernization market is worth approx
imately ¥2.72 trillion in fiscal 2024. Fujitsu forecasts
that this market will expand at a compound annual
growth rate (CAGR) of 14.5% through 2026 and main
tain an annual scale of ¥3 trillion through 2030. Fujitsu
intends to establish a leading position in this market.
Megumi Shimazu
Corporate Executive Officer,
Corporate Vice President,
COO (in charge of Service Delivery)
By steadily tapping into demand for
modernization and expanding
our delivery capabilities, we contribute to
the success of our customers’ DX, and
translate this into growth.
Modernization Knowledge Center
In 2022, Fujitsu established the Modernization
Knowledge Center as a CoE to consolidate superior
insights, best practices, and talent related to modern
ization. As of August 2024, approximately 150 engi
neers are working to standardize services based on
practical and experiential knowledge of modernization.
They also provide support for BPs and SEs responsible
for customer engagements, and verify, prepare, and
deliver tools and services for both Fujitsu and strategic
partners.
At the Modernization Knowledge Center, we are also
expanding our team of specialist engineers known as
Modernization Meisters who work closely on projects.
By re-hiring and training engineers who are approach
ing mandatory retirement, we plan to grow the team
of Modernization Meisters from 40 members as of June
2024 to 100 by April 2025 and to 500 by fiscal 2026.
These Modernization Meisters provide advanced
expertise based on their much-needed skills and expe
rience, collaborating with our extensive delivery teams
to meet increasing demand for modernization.
Source: Estimated by Fujitsu based on data from each research company
40,000
30,000
20,000
10,000
0
2021 2022 2023 2024 2025 2026
(Calendar
years)
(Millions of US dollars)
Outlook for modernization market
On premise
CAGR
–15.4%
Modernization
CAGR
14.5%
On cloud (DX)
CAGR
34.7%
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
44
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Improving productivity by transforming delivery
Service delivery transformation
At Fujitsu, service delivery encompasses all processes
and tasks involved in the building, operation, and main
tenance of IT systems for customers. This includes
not only traditional SI projects, but also the delivery
of Fujitsu Uvance offerings.
Until a few years ago, Fujitsu’s delivery system was
overly optimized for delivering solutions to individual
customers and organizations, leading to the personaliza
tion of know-how and a high dependency on the
resources of external development partners to cover
skill and labor shortages within the Group. This created
challenges related to work efficiency and internal
knowledge accumulation and transfer, including for proj
ect management and technical skills. To address these
challenges, Fujitsu began to accelerate a transformation
of its delivery system in fiscal 2021, kicking off with the
integration of its SI subsidiaries.
The goal of this transformation is to increase the
internal production ratio, productivity, quality, and
security by promoting the standardization and auto
mation of delivery processes, and expanding the use
of Global Delivery Centers (GDCs). We aim to reduce
development based on customer-specific methods
and personalized know-how as much as possible, and
standardize all work processes related to engineering,
development, and testing for service delivery and
offerings. This will allow us to provide higher quality
services more quickly on a global scale. Additionally,
we are pursuing productivity improvements by auto
mating delivery tasks through the use of generative
AI and other technologies.
Strengthening the delivery system
Fujitsu’s delivery system, a combination of GDCs and
the Japan Global Gateway (JGG), aims to expand to
40,000 personnel by fiscal 2025, the final year of the
medium-term plan. As of the end of fiscal 2023, the
number of delivery system personnel reached 32,000,
increasing at a pace slightly ahead of plan. In addition
to increasing the number of personnel, we are also
enhancing our delivery capabilities. Having desig
nated the priority areas of 3S, modernization, cloud,
agile, and project management, we are promoting the
reskilling of GDC personnel in these areas. Fujitsu
aims to increase the ratio of personnel capable of
handling growth areas at GDCs from 10% in fiscal
2022 to 45% by fiscal 2025.
What are GDCs and the JGG?
GDCs and the JGG are hubs that bring together the special
ized personnel and expertise that are essential for delivery
operations. Located in countries such as the Philippines, India,
Poland, and Costa Rica, our GDCs work not only for Japan but
also in collaboration with various overseas regions. They
handle a wide range of tasks, including the implementation of
Fujitsu Uvance offerings, the development of software and
applications, operational services, and call center outsourcing.
As a group of engineers based in Japan, the JGG leads all
processes and tasks encompassed in project requirements,
from system engineering and development of traditional SI
projects to final delivery. To move away from personalized
work in domestic operations and increase the utilization of
GDCs (i.e., increase the offshoring ratio), the JGG promotes the
standardization of processes and rules related to development
and implementation tasks in collaboration with GDCs, as well
as the education of GDCs on Japanese business practices.
GDCs and the JGG are key drivers in enhancing delivery
capabilities and improving the gross profit margin of the
Service Solutions segment. We use the resources provided by
standardization and automation to reskill personnel on higher-
level specialized skills, in a continuation of strengthening our
delivery capabilities. At the same time, we are skill mapping
our human resources and use automation technologies to
match necessary personnel to essential projects. This ensures
that human resources are efficiently allocated to projects with
demand for more resources, further enhancing productivity.
40,000
(30,000 / 10,000)
30,000
(23,000 / 7,000)
23,200
(18,500 / 4,700)
Established JGG, merged
domestic group companies
2021
2022
2023
2025
Number of
employees
(GDCs / JGG)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
45
Fujitsu Integrated Report 2024
Strengthening of consulting
capabilities
Growth scenario for Fujitsu Uvance
Fujitsu Uvance’s key offerings
Technology leadership underpinned
by a pioneering AI strategy
Growth potential of modernization
Improving productivity
by transforming delivery
Reinforcing
management
capital
Management capital, represented by human
resources, intellectual property, and know-how
related to data-driven management, is an essential
input to Fujitsu’s business activities and a source of
value creation. We strive to allocate and utilize these
components of management capital in conjunction
with our business strategies to create value. Also,
we are continually augmenting this capital through
strategic investments and effective management,
thereby elevating the sustainability of our management.
46
Fujitsu Integrated Report 2024
Building a people portfolio that aligns with our
business strategies
The mobilization of people is the key to realizing a
business-aligned people portfolio, a resource strategy
in the 2023–2025 Medium-Term Management Plan
(medium-term plan). This is because we need to shift
human resources to business areas that are expected
to grow and become highly profitable in the future—
the focus fields described in the medium-term plan’s
business model and portfolio strategy. Based on this
concept, since fiscal 2023 the Fujitsu Group has been
working on the mobilization of people in line with
expanding the focus field, Fujitsu Uvance; the launch
of the Uvance Wayfinders consulting brand; and build
ing a global organizational structure, promoting inter
nal job-posting,*1 reskilling and significantly expanding
the recruitment of mid-career personnel.
In addition to these initiatives, in fiscal 2024 we
introduced a visualization and monitoring process for
our people portfolio. Specifically, we identify the
number of people required and capabilities that need
to be strengthened along three axes: business, role,
and region. We then analyze gaps in the current
people portfolio to link them to strategic human
resource investments and KPIs.
We will also develop data and processes to
enhance our monitoring of the timely and strategic
execution of recruitment, assignment, and training.
By sharing with employees our future people port
folio and capabilities that need to be strengthened,
we encourage internal job-posting and on-demand
learning throughout the Company to enhance mobil
ity and productivity.
*1 A system enabling employees to request transfers to available departments or posi
tions that meet their career plans
Strengthening consulting capabilities
From the viewpoint of flexibly promoting measures in
the focus fields indicated in the medium-term plan,
while ensuring alignment with the Groupwide human
resource strategy, it is also important for the HR
department to align with business departments that
are in charge of business strategy. We monitor the
progress of career recruitment, internal job-posting,
and reskilling, which are the key elements of our busi
ness strategy. We analyze whether we are above or
below our targets, and if below, we determine where
the problems lie. The business departments and the
HR department then work together to find solutions.
Strengthening consulting capabilities is one mea
sure we are promoting in alignment with business
departments. To achieve our goal of the business
becoming a 10,000-strong organization during the
period of our medium-term plan, we are focused on
reskilling existing personnel and increasing recruitment
of mid-career personnel. To develop consulting per
sonnel through reskilling, we have introduced a training
and certification process that combines an educational
program leveraging Ridgelinez knowledge with on-
the-job training. The Group has a large number of
highly specialized and skilled employees who are
familiar with the latest technologies and customer
operations. We believe that the development of con
sulting skills by reskilling these employees will enhance
the value we provide to our customers and broaden
employees’ career options, thereby strengthening our
human capital over the medium to long term.
The Group recruits from a wide variety of channels,
including through direct scouting and referral-based
We will accelerate HR poli
cies that promote mobility
of human resources, create a
people portfolio that aligns
with our business strategies,
and strengthen our human
capital over the medium to
long term.
Hiroki Hiramatsu
Director, SEVP
CHRO
* Human Resource
Message from the CHRO (Chief Human Resource Officer)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
47
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Message from the CHRO (Chief Human Resource Officer)
recruitment of experienced professionals. We also
recruit people who have left the Group at some point
but are interested in returning. In fiscal 2023, we con
ducted a review in Japan of the compensation system
for employees at all levels. As a result, our compensa
tion level is now competitive with consulting firms.
We will continue to monitor market trends to ensure
we maintain this competitive edge.
Challenges for employees as driving force of
transformation
Changing employee behaviors is the starting point
for transforming our business model and business
portfolio and taking a unconventional approach
toward providing value to our customers. We have
designed and operate a global personnel evaluation
system, called “Connect,” to foster a mindset that
embraces challenges and the career ownership that
is essential to such behavioral change. We want to
encourage employees to proactively take on chal
lenges and grow. This is precisely why we evaluate
not only their contribution to the achievement of
short-term performance targets but their efforts to
undertake challenges and help realize Our Purpose
and organizational vision by cultivating new busi
nesses and transforming the business model.
In addition to personnel evaluations, we have intro
duced a system that encourages employees to take
on new challenges by adjusting their work objectives
and initiatives to respond in a timely manner to the
rapidly changing business environment. Specifically,
the one-on-one meetings conducted at least once a
month between managers and subordinates provide
important opportunities for coaching and feedback.
Progress on human resource indicators under the
medium-term plan
Of the non-financial targets related to human resources in
the medium-term plan, we are seeing steady improve
ments in diversity leadership. We have set the ratio of
female managers as a KPI, but essentially we are working
to change our corporate culture. We believe in the neces
sity of an omnidirectional approach to rolling out initiatives.
In addition to implementing positive actions,*2 we need to
change our mindset by overcoming unconscious bias, pro
moting inclusive leadership, and reforming workstyles so
individuals have the freedom to work in their own way.
Regarding employee engagement, while we saw
some significant improvements in fiscal 2023 at the
organizational level, the Groupwide figure was on par
with fiscal 2022. This demonstrates the difficulty of rais
ing engagement among the Group’s 120,000-plus
employees. Analysis of data collected in fiscal 2023 sug
gests that improving people management*3 is key to
enhancing engagement and organizational performance.
Based on results obtained through data analysis, we
intend to persistently work toward augmenting engage
ment by establishing best practices for each issue and
developing effective actions for each organization.
*2 Voluntary and proactive efforts to eliminate disparities between male and female
workers, where such disparities exist, and to achieve substantial equal opportunity
*3 Interactive management, in which managers motivate their subordinates through
dialogue and support challenges that lead to their own growth
Conveying the significance and results of human
capital management
The Fujitsu Group is a leader in digital transformation
(DX) for its customers. Internally, we also practice
data-driven management, continuously collecting
and analyzing human resource data and incorporating
the insights gained into our human resource mea
sures. Disclosing data on human resources and visual
izing return on investment of our policies boosts
management transparency. This approach also helps
elucidate the ways in which human capital manage
ment bolsters corporate value. However, in human
resource-related areas alone, the factors that have
the potential to influence the growth of our financial
value are numerous. As a result, we have not yet been
able to complete a sufficiently quantitative analysis
of the relationship between recruitment, training, and
other human resource measures and business
growth. We will continue to utilize the latest technol
ogy to more effectively leverage data, and work to
enhance the Group’s corporate value through more
effective human resource measures.
In addition to CHRO, since June 2024 I have also
served as a board member, an appointment I believe
has been significant in communicating that the
Group considers human resources one the most
important elements of capital and vital to the
enhancement of corporate value. Understanding the
value that the Group’s business activities provide to
customers and society, as well as the culture and
structure that encourages employees to take on chal
lenges and grow independently, are important to our
efforts to continue attracting talented people in this
era of intense competition for human resources. I
believe my role is to reinforce the Group’s human
capital by implementing its human resource strate
gies, and to actively communicate the significance
and results of our human capital management.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
48
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Human resource management
Fujitsu’s human capital management
Recognizing that human capital management is an
important management topic for many Japanese
companies, the Group hosts CHRO Roundtable
meetings, where CHROs from companies in various
industries gather for discussions.
Through such discussions, we have formulated a
Human Capital Value Improvement Model, a concep
tual framework that each company can use when
considering its own human capital management.
The Fujitsu Group also uses this model to identify
“short-term initiatives to produce results” and “long-
term initiatives to produce sustainable effects” to
help realize management and business strategies in
line with its Human Capital Value Creation Model,
and promotes human capital management in a well-
balanced manner. Specific measures in the first cate
gory include formulating a people portfolio to realize
our business strategy and recruiting and assignment
of human resources and designing compensation to
bring the strategy into reality. The second category
includes such measures as promoting DE&I through
GRB (Global Responsible Business), well-being,
health management, and promoting labor safety and
health, operating position-based human resource
management and internal job-posting systems,
encouraging regular one-on-one dialogue between
managers and subordinates, and providing on-
demand training programs that support each
employee to learn autonomously.
At the same time, we are working to establish a
cycle for improving measures as human resource
strategies evolve and times change. We are also
seeking to clarify these measures’ relationships with
corporate value by analyzing and disclosing data and
making visible the return on investment of human
resource-related measures. Specifically, we are scien
tifically analyzing the effects of measures and making
continuous improvements by utilizing human resource
data collected as part of our global employee survey
and through our data-driven management. For exam
ple, previous analyses have shown that personnel
transferred through internal job-posting (our open
recruitment system for human resources) and the
recruitment of mid-career personnel correlate posi
tively with the rate of growth in financial indicators.
This suggests that better mobilization of human
resources, which assumes employees take ownership
of their careers, may help increase corporate value.
Chronological overview of our human resource management transformation
2020
Introduced job-based human resource management
for managers in Japan
Conducted the full-fledged rollout of Work Life Shift
(WLS)
Expanded the internal job-posting system
Revised the performance management system for
senior executives
2022
Expanded the scope of application of job-
based human resource management to all
employees
Rolled out the performance management
system “Connect” to all employees globally
Expanded the scope of the internal job-posting
system globally
2023
Revised the reward system for employees in
Japan and raised the level of compensation
Launched the consulting brand Uvance
Wayfinders and accelerate the expansion of
consulting personnel
Made the employee survey platform globally
2024
In recruiting new graduates, abolished
the practice of starting salary on the
basis of educational background, instead
basing rewards on role and job type
(from April 2026)
(Fiscal years)
Human Capital Value Improvement Model
Initiatives to produce sustainable
effects
Initiatives to produce results
Elements of business management
and strategies other than HR
strategies
Strongly correlated links
Possibly correlated links
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
49
Fujitsu Integrated Report 2024
Corporate Philosophy and Purpose
People Portfolio
Defining Requirements
for Required Human
Resources
Allocation and
Acquisition of People
HumanResource
Evaluation
Learning &
Development
Vision
Revenue
Profit
generation
Individual
Strategy
Autonomous
People
D&I
Mobility
Individual
Motivation
Individual Career
Experience
Engagement
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Human resource management
Creating a business-aligned people portfolio
The resource strategy outlined in the Group’s medium-term plan is to “create a business-aligned people portfolio.”
Accordingly, we are building and operating a people portfolio based on a common global definition of roles.
We have started to define roles and skills that will be needed in the
future based on our business strategy, identify the number of people
required, and analyze gaps between the Group’s current human
resources and those needed in the future.
We have focused on developing engineers with skills in SAP,
Salesforce, and ServiceNow (3S) solutions in the Business
Application domain in order to expand Fujitsu Uvance.
In addition to new graduate hires, we are increasing the year-round
recruitment of mid-career personnel to attract human resources in
a timely manner.
In April 2023, we raised employees’ monthly compensation by an
average of 10%. This move was designed to make us more com
petitive in attracting human resources.
To become more competitive in recruiting experienced workers in
high-priority areas of our business strategy, such as cybersecurity,
AI, data science, and 3S, we will continue to offer the “Highly
Specialized Personnel Compensation System,” a system that
provides add-on reward for employees with strong expertise in
relevant areas.
We will begin studying the process of visualizing and monitoring a
people portfolio based on three axis: business, role, and region. We
will determine headcount requirements by role in line with the busi
ness portfolio, leading to strategic recruitment and assignment of
human resources to growth areas and implementation of human
resource development measures, including reskilling and upskilling.
To expand our consulting capabilities, we are focusing on referrals
and rehires, with plans to reskill or recruit approximately 1,000 mid-
career personnel.
We will continue to focus on training engineers with SAP,
Salesforce, and ServiceNow (3S) skills.
We will extend position-based human resource management to
new graduate hires (from April 2026). We will do away with the
system of starting salaries based on academic background, in
which uniform amounts are offered based on undergraduate or
master’s degrees. Instead, we will offer salary commensurate with
the ability to perform jobs that require a high level of expertise, to
attract more talented and diverse human resources.
At the same time, we will expand our paid internship program from
one to six months, providing opportunity for diverse human
resources to understand and experience working at Fujitsu.
Progress in fiscal 2023
Fiscal 2024 initiatives
Key data related to building a business-aligned
people portfolio
Indicators
Fiscal 2022
results
Fiscal 2023
results
New graduate hires
765
1,037
Mid-career hires
818
1,083
Number of people certified as
highly skilled personnel
78
143
Number of people certified as
highly skilled personnel (3S)
57
128
Number of SAP qualifications
obtained
848
452
Number of ServiceNow
qualifications obtained
217
430
Number of Salesforce
qualifications obtained
589
950
Notes:
1. As of March 31 for each fiscal year
2. Fujitsu on a non-consolidated basis
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
50
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
16
16
15
15
40
30
20
10
0
2023
2022
20
20
2025
30
30
2030
10,000
7,500
5,000
2,500
0
2021
7,217
7,217
2022
7,582
7,582
6,187
6,187
1,030
1,030
589
589
6,933
6,933
7,902
7,902
597
597
2023
7,305
7,305
Major human resource management initiatives and progress
26,485
26,485
80,000
60,000
40,000
20,000
0
2021
30,363
30,363
33,320
33,320
2022
63,683
63,683
2023
36,764
36,764
80
75
70
65
0
2022
2023
75
75
2025
69
69
69
69
Human resource management
Reskilling (Number of people in on-demand training)
Mobility (Number of applicants for internal job-posting system)
DE&I (Ratio of female managers)
Employee engagement
We work to increase employee engagement,
which demonstrates empathy for Our Purpose
and organizational culture, as well as enthusi
asm for work, on the basis that higher levels of
engagement are linked to the growth of both
the individual and the Group. Accordingly, we
have established employee engagement as a
non-financial indicator.
Our target value, a benchmark of global
companies, is 75. In fiscal 2023, employee
engagement remained unchanged year on
year, at 69. Going forward, we plan to more
effectively leverage the data we collect,
extracting insights as we continue to develop
best practices to meet the agendas we face.
Together with the position-based human
resource management system that we intro
duced in fiscal 2020, we significantly expanded
our internal job-posting system with the aim of
promoting job mobility and diversity to realize
our business strategy. We expanded this system
onto a global scale in fiscal 2022. Over the
course of four years, we have received more than
27,000 applicants, and about 10,000 employees
have changed their positions. Notably, we have
adopted our internal job-posting system in
which all new managers go through a selection
process based on the system. We will continue
to provide employees with opportunities for
growth through this measure.
To realize a corporate culture in which diverse
human resources can leverage their capabilities
and express their values, in fiscal 2023 we set
the percentage of female managers as one of
our non-financial indicators, targeting a rate of
30% by the end of fiscal 2030. As a milestone
toward that goal, we aim to achieve a 20% ratio
of female managers by the end of fiscal 2025.
In addition to these efforts, we will continue
to promote various other initiatives, such as
“mindset shift,” “positive action,” and “improving
the working environment through Work Life
Shift promotion.”
The Group has developed an on-demand train
ing platform that allows employees to select
and take the training they need on their own.
We introduced LinkedIn Learning in fiscal 2023;
as of June 2024, it was used by approximately
80% of employees. Looking at the combination
for LinkedIn Learning and Udemy, the number
of participants and total learning time in Japan
have grown significantly since fiscal 2020 by
4.8 times and 4.4 times, respectively. As these
figures show, autonomous learning has become
standard over the past four years.
(Fiscal
years)
(Fiscal years)
(Fiscal years)
(Target)
(Target)
Open-
period job-
posting
Participants
using
Udemy only
New
manager
positions
Participants
using LinkedIn
Learning only
or LinkedIn
Learning +
Udemy
(%)
(People)
(People)
(Fiscal years)
(Points)
(Target)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
51
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Employee opinions
Human resource management
Global Job Opportunities
I decided to use the Global Job
Opportunities because I had a strong
desire to work in the United States
again someday, as my previous assign
ment in the U.S. had been very stimulat
ing and earned me many opportunities
for my personal growth.
Before I applied through the Global
Job Opportunities, I tried to gain an
accurate understanding of the HR pro
cess associated with the new position. I
checked the posting information regu
larly and focused in particular on the operational process and
procedures related to global assignments. Because I thought
first-hand information was important, I consulted directly with
the reporting manager of the new posting to get a better under
standing of specific roles, expectations, scope of responsibilities,
and business situation. I also obtained information about career
and living conditions from local colleagues, helping to clarify the
image of my own active role after my expatriation.
Through the Global Job Opportunities, I feel that I have grown
more than I had initially expected. I succeeded in forging per
sonal networks both inside and outside the Group, forming the
habit of thinking from a medium- to long-term perspective with
an awareness of the issues at stake, taking the initiative to
develop a career I am passionate about, and adopting the work
attitude of “fail fast and learn faster.” There are issues that can be
seen only from being on the front lines in the U.S., where compe
tition is fierce and trial-and-error is repeated on a daily basis. First,
we will continue to contribute to the execution of growth strate
gies centered on Fujitsu Uvance through an issue-driven
approach based on a correct understanding and analysis of such
issues and the actual situation of our customers.
Since joining the Company as a busi
ness producer (a “BP,” the Group’s term
for a salesperson), I had always consid
ered “clarifying issues” to be an essen
tial skill, but I always had a nagging
suspicion that I might not really be fully
understanding the issues customers
faced when I prepared proposals.
When I was assigned to my first DX
project, I was unable to explain my pro
posal in my own words. This was a
crisis; I could not go on like this.
Through the Job Challe!! system, I decided to apply for a
position in the data consulting department. I thought that
being in this challenging environment for a limited period of
time would provide me with experience that would be an asset
to my career as a BP.
I gained three things through Job Challe!! First, I learned the
art of engaging in day-to-day operations and negotiations from
a wide range of perspectives including those required as a BP,
from a project management perspective, and from a risk man
agement perspective. Second, I gained an awareness of high-
quality output. It was a particularly good experience for me to
formulate hypotheses based on publicly available information
and past experiences, clarify issues that customers were not
aware of, and create appealing proposals, especially when we
were unable to obtain information from customers directly. The
third thing was pride in my work. I have noticed that having this
pride creates pressure to meet expectations both internally and
externally. This pressure, in turn, reinforces a sense of commit
ment to results and improves the quality of output. I hope to
internalize what I have learned in this position as my own
strength and work even harder as a BP.
Job Challe!! system
Since joining the Group, I had been a
BP targeting the pharmaceutical and
medical industries. However, I wanted
to help solve problems at a level closer
to the customer. My hope was to transi
tion to a system engineer (SE) position,
so I took a reskilling training course
toward becoming an SE in charge of
system implementation. As this would
mean a major career change, I expected
the hurdles to be high. At the same
time, I thought it would be a unique
opportunity to receive intensive train
ing in a new area of business, so I vol
unteered to take on the challenge.
Midway through my training period, I applied for a position
through the internal job-posting system and transferred to my
current department, meeting my goal of becoming an SE with
around two months of study. However, these two months
helped to dispel my anxiety about changing careers, as I was
able to systematically learn the basic behaviors and technical
skills related to system integration as an SE at Fujitsu. Team
exercises also helped me to interact for the first time with
people in different professions. This broadened my knowledge,
stimulated me, and increased my motivation.
Having used the internal job-posting system to change posi
tions, nowadays I am involved in implementing and expanding
the sales of solutions for acute care settings. I hope to help
resolve issues in the medical field by combining the problem-
solving skills developed in my sales career and the technical
knowledge I gained during reskilling. I intend to fulfill my own
purpose, to create a safe, secure, and comfortable society
through dialogue on a daily basis.
Reskilling
D.M. Thanuja
JOC Sales
Americas Region
Risa Hirate
Electronics Division
Enterprise Business Unit
Tomomi
Nakagawa
Wide-Area Healthcare
Delivery Second Division
Healthcare Business Unit
Fujitsu Japan Limited
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
52
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
IP as a source of added value
Intellectual property (IP) plays a major role in Fujitsu
Uvance, which is a pillar of our business portfolio and
business model transformation moving toward 2030.
Our own IP and the combination of our own IP and IP
from other companies are both the keys to develop
ing unique offerings and the source of the added
value these offerings generate. When offering ser
vices that combine IP in this manner, it becomes even
more important to demonstrate the Group’s unique
ness, highlighting capabilities only Fujitsu can provide.
To secure this uniqueness, the Group’s Intellectual
Property Division is responsible for IP management,
including patent prosecution from a legal perspective.
The Group’s technology strategy focuses R&D
resources on five Key Technologies (KTs), with their
core in artificial intelligence (AI), which is essential for
digital services such as Fujitsu Uvance. Under this strat
egy, the share of the five KTs is increasing in the
Group’s IP portfolio. In particular, the number of
patent applications for AI-related technology, which
has accumulated research and development since the
1980s, ranked first in Japan in fiscal 2023, following
fiscal 2022.
Focus on IP for applied technology
In addition to core technology IP, which has histori
cally been a strength for the Group, now we are focus
ing on IP prosecution in the area of AI applied
technologies. Applied technologies refer to technolo
gies that fuse core technologies with knowledge
about specific industries and applications such as
those implemented in Fujitsu Uvance’s offerings, or
technologies that fuse AI and the other four KTs.
IP prosecution for applied technologies is linked to
our business strategy of accelerating the fusion of
the five KTs, with AI at their core, into Fujitsu Uvance.
In line with the business strategy announced in
February 2024 to provide Fujitsu Uvance with the
Fujitsu Kozuchi AI platform, we are working to build
an IP portfolio of applied technologies.
Enhancing dialogue between research and IP
divisions
We are strengthening cooperation between the
Research Division and Intellectual Property Division.
One specific example is identifying areas where
resources should be invested in prosecution in accor
dance with the IP utilization policy developed based
on the Group’s technology strategy and the current
state of its IP portfolio. To gain competitive advan
tages, the Intellectual Property Division analyzes the
strengths of the technologies under development in
the marketplace with IP information and feeds these
results back to the Research Division, and identify
areas where international standardization and open
source software (OSS) should be actively utilized and
promote the efforts. Furthermore, we will deepen col
laboration between the Intellectual Property Division
and business divisions to promote stronger Group
offerings through R&D technologies in order to
enhance the added value of Fujitsu Uvance’s offerings.
In addition to IP prosecution of technologies, IP man
agement contributes to value creation through various
approaches, including design and brand prosecution, IP
license management in the area of open innovation, and
strategic use of international standards, rules, and OSS.
IP management, including preventing other companies
from infringing on the Group’s rights, appropriate IP
management, and compliance, is also an effort to iden
tify and reduce risks related to intellectual property that
may damage corporate value. We are striving to contin
uously enhance corporate value by promoting IP man
agement that aligns with our management strategy,
technology strategy, and portfolio strategy.
Intellectual property
Technology
strategy
(Focus on five
Key Technologies)
Portfolio
strategy
(Fujitsu Uvance)
Development
of competitive
offerings
Expansion of
the ecosystem
Input into medium- to long-term technology strategy
and portfolio strategy (search for business opportunities)
Support for new business model
creation (preparation of revenue
model based on co-creation)
Support for
development of
offerings
Strategic use of international standards and rules
OSS compliance
Establishment of technology, design, and brand rights
Rights infringement prevention survey/
consultation on IP-related contracts
Domains for future functional enhancement
Functions from the past to present day
Technology strategy, portfolio strategy, and IP management
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
53
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Management transformation through
the OneFujitsu Program
The OneFujitsu Program is the core of the Group’s dig
ital transformation (DX), an initiative to realize data-
driven management and pursue operational
excellence.* More than just an IT project, OneFujitsu
represents management transformation in the sense
that DX can only be achieved through comprehensive
reforms that include the standardization of business
processes, integration of infrastructure, and deploy
ment to frontline departments.
OneFujitsu applies solutions used as global stan
dards, such as SAP and Salesforce, to ensure that the
global definitions of business processes are uniform
and standardized.
We have also developed a package of measures
such as reskilling that encourage employees to change
their behavior. This is essential for improving the quality
of OneData (data that is consistent Groupwide), and
maximizing the effects of data-driven management. We
have rolled out this package across the Group. In addi
tion, we have honed an agile and speedy approach
to improvement. This
approach centers on
close and ongoing
discussions with man
agement in the use of
technology, including
AI, and in the construc
tion of dashboards that
are displayed atop the
data infrastructure.
* A state in which a company main
tains a unique advantage that
competitors cannot emulate by
aiming for operational efficiency
and improvement
Creating value by utilizing practical knowledge
and expertise
Alongside these efforts, the Group has established an
organization to promote data-driven management and
developed a scheme to consolidate the knowledge
and know-how gained through the global develop
ment of OneFujitsu-related initiatives and best prac
tices for data utilization in various internal departments.
The Group has accumulated a wealth of practical
knowledge and expertise as a result of its experience in
confronting and overcoming a variety of transformation
challenges. These include formulating strategies for
realizing data-driven management, establishing a strat
egy promotion system, studying implementation meth
ods, and developing various frameworks and programs
for Groupwide deployment.
The Group applies this practical knowledge and exper
tise to its proposals for solving the business challenges
customers face. This expertise amounts to crucial man
agement capital, as it adds value to the Group’s offerings
and services, including consulting services, modernization,
and Fujitsu Uvance, and constitutes a source of competi
tive advantage for the Group in these areas.
Realizing data-based management
The Group’s data-driven management continues to
evolve as the OneFujitsu Program progresses.
Specifically, OneCRM was operational in 31 countries
as of 2022, with 20,000 Group employees from man
agement to frontline business staff able to monitor
comprehensive and granular data along a time axis. We
are gaining the ability to predict physical market trends
and optimize our management and business strategies
accordingly.
In addition, OneERP+, which converts tangible and
intangible management resources into data and
makes them visible, has begun operations at Fujitsu
Limited and Fujitsu Japan Limited, marking a major
milestone for data-driven management. In the area of
purchasing, for instance, the new system facilitates
seamless linking among all processes, from compiling
the information needed to place orders all the way to
paying suppliers. The system will offer centralized
management of all data, including necessary forms
and documents. The system will also facilitate visual
ization of procurement and supplier status across the
entire Group.
We will continue working to realize data-driven
management and achieve operational excellence by
upgrading our business management and service
structure based on OneERP+ and extending the
reach of our data infrastructure to all regions.
Data-driven management expertise
OneFujitsu milestones
2020
Full-fledged launch of the DX project Fujitsu
Transformation (Fujitra)
April 2022
OneData launches in Japan
OneCRM launches in all regions; definitions are
unified globally
OneERP+ goes live first in the United Kingdom
and Ireland
December
2023
Global rollout of OneData
October 2024
OneERP+ goes live at Fujitsu Limited and Fujitsu
Japan Limited
OneFujitsu
OneERP+
OneCRM
OnePeople
OneLicense
OneSupport
OneData
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
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Reinforcing management
capital
Sustainability
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Corporate governance
Data section
54
Fujitsu Integrated Report 2024
Message from the CHRO
Human resource management
Intellectual property
Data-driven management expertise
Sustainability
management
To achieve Our Purpose, which is to make the world
more sustainable by building trust in society through
innovation, Fujitsu is practicing sustainability manage
ment in line with the Group’s Materiality. We will
integrate the references obtained through practice
into our business and contribute to our customers'
sustainability transformation.
55
Fujitsu Integrated Report 2024
Message from the CSSO (Chief Sustainability & Supply Chain Officer)
Gearing up for the practical phase
The Fujitsu Group’s Materiality clearly states its intent
to positively impact customers and society through its
business, indicating that the Group has advanced from
encouraging employees to take ownership of sustain
ability, by fostering an awareness of its importance
and understanding Our Purpose, to creating an impact
through its business activities. Furthermore, we have
moved on to the stage of linking this impact to our
market valuation—to enhancing our corporate value.
For example, supply chain priorities have tradition
ally focused on managing risk factors that could
negatively impact the Group’s business, beginning
with environmental stewardship and respect for
human rights and continuing with compliance, ensur
ing economic security, and enhancing information
security. However, the question now is how to gain
the empathy of partners and work together to
manage the supply chain from a sustainability per
spective, creating an overall positive impact and con
tributing to the Group’s corporate value.
I was appointed CSSO in April 2024, and the addi
tion of sustainability to my existing responsibilities in
the supply chain has made me realize the importance
of my role in shifting the Fujitsu Group’s sustainability
management to the practical phase.
The impact we pursue through our business
My role as CSSO in this new phase is to create a
mechanism to make the Fujitsu Group’s vision reso
nate with employees, business partners, and other
stakeholders, and to put this vision into practice.
Specifically, we will organize KPIs so that employees
can think about Materiality in relation to their own
work, measure their impact using metrics that are
widely accepted both internally and externally, while
also taking external indicators into consideration, and
communicate the progress.
To ensure this practice gains traction, we also need
to integrate sustainability into the business strategy
and establish a mechanism to promote sustainability in
all business groups and functional sections within the
organization. This includes integrating the knowledge
and expertise the Group has accumulated through
sustainability management into Fujitsu Uvance and
other businesses, and converting it into value for cus
tomers and society. We will reference the Group’s
experiences by making the correlation and causality
between financial and non-financial indicators visible,
so we can assist customers in their own transformation
to sustainability.
As CSSO, my role is to connect the sustainability
initiatives of organizations within the Fujitsu Group.
I will contribute to enhancing corporate value by
ensuring the permeation of sustainability and focus
ing on building a framework to advance initiatives
that produce an impact through our business.
We focus on sustainability
management that
contributes to enhancing
corporate value.
Takashi Yamanishi
Corporate Executive Officer, EVP
CSSO
* Sustainability & Supply Chain
Fujitsu Group overview
and management policy
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Financial strategy and
business overview
Progress and outlook in
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Corporate governance
Data section
56
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Overview of our sustainability management
As a member of international society, the Fujitsu Group is working earnestly to resolve societal issues through responsible business activities, from the
perspectives of the environment, society, and the economy. We aim to grow over the long term while generating a positive impact on society. To realize
this goal, we are promoting sustainability management under the guidance of our senior management team.
Sustainability Management Committee
The Fujitsu Group has established the Sustainability
Management Committee, which will drive a sustainability
focused management approach under the supervision and
direction of the Board of Directors meeting and the Executive
Management Council meeting. The committee is tasked with
discussing how a responsible global company should con
duct sustainability management in order to realize long-term
growth and transformation, while taking into consideration
environmental, social, and economic impacts, as well as all of
the Group’s stakeholders. The committee is chaired by the
CEO and comprises executives or SVPs appointed by the
chairperson. As of September 2024, the committee had 15
members, including the chairperson. The committee meets
once every six months, and each agenda item is designed for
discussion, not just a description of activities.
Based on Our Purpose and Our Values as set out in the
Fujitsu Way, we identified issues that are deeply connected
to the sources of the Fujitsu Group’s value creation. These
included respect for human rights, acceptance of diversity
and equity, human resource development, maintenance of
the global environment, and contributing to the develop
ment of regional communities. We refer to such matters as
GRB (Global Responsible Business), and our activities in
these areas have been reported and discussed in the com
mittee since fiscal 2020. Moreover, based on the Materiality
defined in 2023, we have assigned an executive for each
Materiality, and we are discussing non-financial indicators
and confirming progress in relation to our non-financial
impact on customers and society through our business
activities. In this way, we aim to increase the corporate
value of the Fujitsu Group sustainably over the long term.
Agenda items for committee meetings held in fiscal 2023
• Activity reports on GRB priority issues
• Status reports on sustainability in business
• Materiality
• Performance analysis of non-financial and financial indica
tors, dashboards
• Information disclosure on sustainability
Sustainability Management Committee
Reporting, deliberation, and decision-making on sustainability-related policies and activities
Chairperson: CEO; Vice-chairperson: Corporate Vice President;
Committee members: Corporate and business group board members or SVPs
Head of Office: CSSO (Chief Sustainability & Supply Chain Officer)
Sustainability management promotional framework
Board of Directors meeting
Executive Management Council meeting
Business groups/regions and corporate functions
For more details, see sustainability management in the Fujitsu Group
For more details, see GRB (Global Responsible Business)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
57
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainabil-
ity management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
The environment
To address environmental and social issues, we have established eight targets along
the two axes of “customers and society” and “Fujitsu and Supply Chain.” These targets
cover three global risks identified by the World Economic Forum: “climate change,”
“resource circulation,” and “living in harmony with nature.” We are developing
Fiscal 2023 results of Environmental Action Plan (Stage XI) (fiscal 2023–2025)
initiatives to contribute to customers and society through digital technology, expand
our use of renewable energy, and otherwise solidify our footing toward the realiza
tion of the Group’s environmental vision (described below). In fiscal 2023, we met all
our targets, which we set by backcasting from the fiscal 2025 targets.
Environmental Action Plan Stage XI (fiscal 2023–2025)
Goal
Base line
Targets for fiscal 2025
Fiscal 2023 results
Customers and society
• Fiscal 2023: Environmental contribution metrics will be developed.
Fiscal 2024 to fiscal 2025: The amount of contribution will be measured
and disclosed.
• Earn the objective recognition of global customers and society as an SX
leader
—
Deliver SX offerings to customers
Established indicators, improved exter
nal evaluation, advanced social imple
mentation (linked data on CO2
emissions in the supply chain)
Fujitsu and supply chain
Climate
change*1
Scope 1 and 2
Reduce GHG emissions at business sites by half of the base year by the end
of fiscal 2025
• Increase use of renewable energy to 50% or more by 2025
Fiscal 2020
Reduction of at least 50%
41.6% reduction
(330,000 tons)
Scope 3
(Category 11)
Reduce CO2 emissions from power consumption during product use by
12.5% or more
Fiscal 2020
Reduction of at least 12.5%
34.2% reduction
Scope 3
(Category 1)
Reduce GHG emissions in the supply chain
• Major business partners should set emissions reduction targets
(equivalent to SBT well below 2°C target)
• Collection of GHG reduction data, construction and deployment of
mechanisms
—
To complete target setting
Set target at 54% (220 companies)
Resource circulation
Develop products and services that contribute to a circular
economy (CE) business model
—
Circular economy business products and
service development
Finished setting targets for each product
business division
Reduce water consumption by 57,000 m3 or more by implementing
continuous water reduction measures
—
57,000 m3 or more
59,166 m3 reduction
Strengthen awareness of water resource conservation in the upstream
supply chain
• Request our major suppliers to make efforts to raise their awareness of
the importance of water resources
—
To complete the request
Completed 100% of requests
Living in harmony with nature
(conservation of biodiversity)
Reduce negative impacts on biodiversity in the areas of our corporate
activities, including supply chains, by at least 12.5%; in addition, promote
activities that increase positive impacts on biodiversity
Fiscal 2020
Reduction of at least 12.5%
27.5% reduction
*1 Scope 1, 2, and 3 adjusted for acquisitions and divestitures
Fujitsu and supply chain
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
58
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Reduction of GHG emissions across the entire value chain (Scope 1, 2, and 3)
Road map to zero emissions
The Fujitsu Group has been working toward carbon neutrality, revising its fiscal 2030
target for reducing GHG emissions from business activities (Scope 1 and 2) from a 33%
to a 71.4% reduction compared with fiscal 2013 levels (the “1.5°C pathway” validated
by the SBTi in April 2021). However, as the global community accelerates its efforts to
become carbon neutral, the Fujitsu Group is reexamining the role it should play in
society. Accordingly, we now aim to meet our target of “zero CO2 emissions by the
Fujitsu Group by fiscal 2050” by fiscal 2030—20 years ahead of the original schedule.
Reduction of GHG emissions from business activities (Scope 1 and 2)
We have also established a new target to achieve net zero*2 GHG emissions for
the entire value chain (Scope 1, 2, and 3) by fiscal 2040. This target, which sets fiscal
2020 as the base year for reaching net zero by fiscal 2040, was validated as net zero
by the SBTi in June 2023.
*2 Refers to reducing GHG emissions by at least 90% from the emissions in the base fiscal year by the target fiscal year, then removing
10% of lower residual emissions by absorbing atmospheric CO2 through the use of Direct Air Capture (DAC) technology and
afforestation
Efforts to achieve net zero
The Fujitsu Group is actively procuring and strategically expanding its use of renew
able energy both in Japan and overseas in order to achieve RE100 by 2030. In Japan,
the goal is to source 100% of electricity used at major data centers from renewable
energy by 2025. Fujitsu Australia sourced 47% of electricity used at its data centers
from renewable energy sources in fiscal 2023. This
was due to the company’s signing in 2022 of a
Power Purchase Agreement (PPA) with CWP
Renewables (at the time); this is the Fujitsu Group’s
largest PPA. We will continue to provide low-GHG-
emission services to our customers. We also intend
to expand our use of renewable energy and con
tribute to climate change adaptation by introduc
ing renewable energy sources additionally and
further improving energy efficiency.
Initiatives to realize a circular economy
Now that the concept of a “circular economy” has evolved into a global trend, the
Fujitsu Group needs to consider a circular economy business model that matches
the characteristics of individual products, and to design products to match this new
business model. Environmental Action Plan (Stage XI) calls for the development of
products and services that contribute to a circular economy business model. We
held a briefing and workshop on circular economy business in September 2023,
mainly targeting the design and development departments of Group products, and
established activity targets for each product business unit. Going forward, we will
promote service developments that center on our products.
For more details, see the environment
Base year
emissions
100%
2020
2030
2040
Equalize
amount between
residual emissions
and
neutralization
(net zero)
0
Greenhouse gas
emissions
t-CO2
Neutralization amount (removal and storage from the atmosphere)
Reduction of
at least 90%
Baseline
The environment
2°C pathway
1.5°C pathway
Energy conservation
Renewable energy
20 years ahead of schedule
0%
2030
100%
100%
50%
100%
Greenhouse
gas emissions
reduction rate
%
2013
2020
2050
33%
Baseline
71.4%
Sapphire Wind Farm, the largest wind farm in New
South Wales, operated by CWP Renewables
(at the time)
Fujitsu Group overview
and management policy
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Financial strategy and
business overview
Progress and outlook in
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Reinforcing management
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Sustainability
management
Corporate governance
Data section
59
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
TCFD-based information disclosure
The Fujitsu Group recognizes that climate change is an important issue for management as it has a significant impact on the sustainability of society over the long term, and we therefore
conduct analysis to ascertain medium- to long-term risks and opportunities. In addition to our own response to climate change risks, we believe that examining the potential climate
change risks affecting our customers and making value creation proposals to them using our strengths in digital technology will also lead to business opportunities.
As a result, we have also strengthened our governance as we aggressively promote initiatives on management strategies for climate change countermeasures. In April 2019,
we announced our support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD), and we are working to disclose information
effectively to various stakeholders, including investors.
For more details, see TCFD-based information disclosure, including scenario analysis
Item
Response status
Governance
Oversight structure under the Board of
Directors for climate-related risks and
opportunities
• The Sustainability Management Committee shares the risks and opportunities arising from climate change, deliberates on medium- and long-term issues, and formulates policies. These
results are reported to the Board of Directors via the Executive Management Council. In fiscal 2021, the results of analysis using multiple climate change scenarios, including limiting global
warming to 1.5°C, were reported on and discussed by the Sustainability Management Committee.
• Important risks identified for the overall Group, including climate risk, are reported periodically to the Board of Directors by the Risk Management & Compliance Committee.
Role of management in assessing and
managing climate-related risks and
opportunities
• The representative director and CEO serves as the chair of the Sustainability Management Committee, with responsibility for the highest level of decision-making and for business execution.
Directors are responsible for supervision based on reports by the Executive Management Council. The CSSO (Chief Sustainability & Supply Chain Officer) proposes reforms to directors and
the executive team and executes business related to sustainability.
• The Company introduced ESG indicators, including consideration of climate-change issues, for evaluation of executive directors’ bonuses.
Strategy
Short-, medium-, and long-term climate-
related risks and opportunities
• The provision of ICT products that can contribute to climate change mitigation and adaptation measures creates opportunities to increase sales. Physical risks and legal risks have an impact
on operational costs by requiring the implementation of measures in the Group’s operations and supply chains.
Impacts on business, strategy, and finan
cial planning
Resilience of the organization’s strategy,
taking into consideration different climate-
related scenarios, including a 2°C or lower
scenario
• In fiscal 2021, scenario analysis was conducted for businesses susceptible to climate change, covering the period to 2050 and using 1.5°C and 4°C scenarios.
• Analysis of the risk to the Group and the opportunities acquired by supporting resolutions to customers’ issues found that the Group’s businesses have strategic resilience from a medium- to
long-term perspective.
Risk management
Climate-related risk identification and
assessment process
• The Risk Management & Compliance Committee promotes Groupwide risk management policy, including for risks related to climate change. Based on the risk assessment results for each
division, the committee conducts a two-factor matrix analysis with severity and likelihood axes, selects and assesses risks, and reports the results to the Board of Directors.
Climate-related risk management
process
• The Group conducts risk monitoring using an environmental management system based on ISO 14001. The Sustainability Management Committee is responsible for managing the progress
of climate change measures.
Status of integration with organization-
wide risk management
• The Risk Management & Compliance Committee identifies and evaluates Groupwide risks, including climate change, and coordinates with the Sustainability Management Committee to iden
tify, analyze, and evaluate risks, and to propose and implement recurrence prevention strategies.
Metrics and targets
Metrics used by the organization to
assess climate-related risks and opportu
nities in line with its strategy and risk
management process
• Fujitsu uses greenhouse gas (GHG) emissions and the renewable energy introduction rate as metrics.
Scope 1 and 2, and the corresponding
Scope 3 GHG emissions (fiscal 2023
achievements)
• Scope 1: 64 kt-CO2
• Scope 2: 266 kt-CO2 (Market-based)
• Scope 3: 1,086 kt-CO2 (Category 1: Purchased Goods and Services), 2,283 kt-CO2 (Category 11: Use of Sold Products)
Targets used by the organization to
manage climate-related risks and oppor
tunities and performance against targets
(fiscal 2023 achievements)
• Set new targets to achieve net zero GHG emissions in the Group’s own business activities by fiscal 2030 and across the entire value chain by fiscal 2040
• Scope 1 and 2 (compared with fiscal 2020): 41.6% reduction in fiscal 2023 versus a target of 100% reduction by fiscal 2030
• Scope 1 to 3 (compared with fiscal 2020): 28.1% reduction in fiscal 2023 versus a target of 90% reduction by fiscal 2040
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
60
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
TNFD-based information disclosure
Human rights
Human rights policy and structure
The Fujitsu Group has formulated the Fujitsu Group Human Rights Statement, which
clearly states the Group’s commitment to upholding international norms such as the
United Nations Guiding Principles on Business and Human Rights, complying with
laws and regulations, conducting human rights due diligence on an ongoing basis,
and engaging in dialogue with stakeholders. The statement has been translated into
21 languages and is disseminated to all Group companies, as well as to suppliers for
their agreement and support.
An organization to spearhead human rights efforts has been established within
the CEO office, which reports directly to the president. This organization works with
corporate and business divisions to implement activities aimed at resolving human
rights issues throughout the value chain. We have also set up a program of regular
meetings with human rights staff in each region to promote the program globally.
Activities are reported to and discussed by the Sustainability Management
Committee, which is chaired by the president, and results are reported to the
Executive Management Council and the Board of Directors.
Promoting human rights due diligence
Adopted the TNFD framework
Expressing its agreement with the framework of the Taskforce on Nature-related
Financial Disclosures (TNFD), the Fujitsu Group registered as a TNFD Adopter. The TNFD
announced our adoption at the Annual Meeting of the World Economic Forum in Davos,
Switzerland. We plan to conduct an assessment in line with the LEAP approach and
conduct disclosure from 2024 onward in accordance with the disclosure items recom
mended under the TNFD framework. We will gradually update our disclosure content.
Nature-oriented initiatives
Formulation of our vision and short- and medium-term targets
The Fujitsu Group has formulated its vision for 2050, medium-term target for 2030, and
short-term target for 2025 (Environmental Action Plan Stage XI). Established in line with
the Kunming-Montreal GBF, these targets aim to move us along a nature-positive pathway.
Vision (2050)
Create a world in harmony with nature, where “nature and biodiversity,” which are funda
mental to a sustainable society, are fully restored through digital technology
Medium-term target
(2030)
Reduce negative impacts on biodiversity by at least 25% (base year: fiscal 2020) in the
area of company’s corporate activities, including supply chain, and promote activities to
increase positive impacts on it.
Short-term target
(2025)
Reduce negative impacts on biodiversity by at least 12.5% (base year: fiscal 2020) in the
area of company’s corporate activities, including supply chain, and promote activities to
increase positive impacts on it.
Examples of activities that reduce negative
impacts on biodiversity
An evaluation of the Fujitsu Group’s overall cor
porate activities, using the Ecological Footprint
(EF) as a metric, identified “CO2 emissions” and
“energy use” as accounting for 99% of factors.
Accordingly, we concluded that our climate
change measures are effective at reducing
negative impacts on biodiversity.
Examples of activities that increase positive impacts on biodiversity
The Fujitsu Numazu Plant has been certified as a Nationally Certified Sustainably
Managed Natural Site (site for symbiosis with nature) by the Japanese Ministry of the
Environment, contributing to achievement of the 30by30 target.
For more details, see our response to the TNFD
Water resource use
(Fujitsu Group, supply chain)
8%
Other activities: Close to 0%
EF calculation results in the group
(fiscal 2020)
- Percentage by corporate activity -
Emission of CO2 (Fujitsu Group)
10%
Emission of CO2 (supply chain)
82%
90% of this amount
is attributable to
energy use
Human rights issues identified through a human rights impact assessment conducted
in fiscal 2022
High
Low
Low
High
Salience of risk
(scope, scale, remediability likelihood)
Relevance for business
(Attribution, leverage, current management)
Non-
discrimination
and equal
opportunity
Freedom of association
and collective bargaining
Privacy and information security
Product quality and safety
Issue categories
Tier 1
Tier 2
Tier 3
Employees
Supply chain
Customers, consumers,
communities
Cross-cutting issues
Climate change and
environmental impact
Forced, bonded
labor
Raw materials procurement from
conflict-affected and high-risk areas
Ethical use of technology
DE&I
Grievance mechanism
and access to remedy
Fair business practices
and anti-corruption
Occupational health
and safety
Working conditions
Privacy and information security
Forced, bonded,
compulsory labor
Supplier, labor standards
Risk in conflict-affected
and high-risk areas
Child labor
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
61
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
The Fujitsu Group conducts human rights due diligence as a process of ongoing improve
ment in which it identifies, works to prevent, and mitigates negative human rights
impacts throughout the value chain, in accordance with the Group’s human rights policy.
To enhance the effectiveness of our human rights due diligence, we regularly
conduct human rights impact assessments. In 2022, we assessed the possible nega
tive human rights impacts of our business activities in cooperation with Business for
Social Responsibility (BSR), an international NPO. We identified 18 human rights
issues affecting three rights holders in Fujitsu’s value chain (supply chain, employees,
and customers/consumers/communities) and are working on prevention and mitiga
tion measures, starting with high-priority issues.
In relation to “supplier and labor standards,” “forced, bonded and compulsory
labor,” and “child labor” in the supply chain, we ask our suppliers to improve their
working environment, eliminate forced and child labor, and conduct regular surveys.
Addressing the topics of working conditions and non-discrimination and equal
opportunity among employees, we have introduced flexible working hours and tele
commuting systems to improve work-life balance and reduce long working hours. In
addition, we strive to improve the work environment and foster respect for each and
every employee through employee engagement surveys as well as education on
human rights, biases, and other topics.
With regard to privacy and information security and the ethical use of technology
for customers, consumers, and the community, under the leadership of the CISO
(Chief Information Security Officer), we are promoting efforts to ensure and improve
customer information security by continuing to reform the awareness of each
employee and our organizational culture. We also have AI ethics initiatives in place to
address the risks associated with data handling and the use of artificial intelligence.
The Fujitsu Group sets a goal to engage in dialogue with stakeholders once a
year. In March 2024, we invited human rights experts from the United Nations
Development Programme (UNDP) and Caux Round Table Japan (CRT Japan) as external
experts to evaluate and provide suggestions on human rights promotion.*1
In November 2023, we joined the “Engagement and Remedy Platform,” which is operated
and provided by the Japan Center for Engagement and Remedy on Business and
Human Rights (JaCER).*2 By accepting complaints through a third party, we foster fairness
and transparency in the handling of complaints and promote dialogue and redress.
AI ethics and human rights
Rapid advances in information and communication technologies, especially AI, are
changing people’s lives and the society significantly. At the same time, some AI use
can have serious consequences, leading to inequality, discrimination, and other
human rights violations, and AI can have unforeseen side effects.
The Fujitsu Group has been promoting the concept of being “human centric” for
many years, and aiming to realize a human-centric ICT society. In 2019, we formu
lated the “Fujitsu Group AI Commitment” as a guideline to support our customers’
business transformation as a trusted business partner. In this guideline, we discipline
ourselves as an AI developer and provider and as a trusted business partner to our
customers. In 2022, we established the AI ethics and Governance Office to lead the
Group’s governance from the perspective of AI ethics, and are promoting its global
expansion and implementation as described below.
Since 2019, Fujitsu has regularly held meetings of the “Fujitsu Group External
Advisory Committee on AI ethics” to obtain objective evaluations of our AI ethics
efforts from external experts in AI technology as well as a diverse range of non-AI
experts, including people from the legal, biomedical, environmental, consumer
affairs, and ecological fields. Committee meetings are attended by the CEO and
other C-suite managers involved in AI-related R&D and business. The committee’s
discussions are also shared with the Board of Directors to ensure transparency
among our organizational management. Our progressive initiatives have been
recognized as meaningful efforts to link AI ethics with corporate governance.
We also believe it is essential for each employee to understand the importance
of AI ethics and to practice self-discipline. In fiscal 2020 we introduced mandatory
e-learning on AI ethics in Japan region. In fiscal 2023, 93% of all Group employees
in Japan region completed the e-learning course, and global regions are currently
promoting similar training in AI ethics. In the AI delivery process, we are working to
address AI-specific risks with existing quality and security processes, as well as
mandating independent reviews on ethical aspects.
In addition to fostering AI ethics within the Group, we encourage discussions on
AI ethics with next generation through industry–academia collaboration activities.
We work actively to share our efforts toward and knowledge of AI ethics to consum
ers and user companies that come into direct contact with consumers. Furthermore,
we provide user companies with our “Fujitsu Generative AI Guidelines” and tools to
detect ethical risks related to AI.
For more details, see human rights
Human rights
*1 Details of dialogue with external experts
*2 Details of Fujitsu’s human rights consultations and reporting system operations
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
62
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Supply chain strategy encompassing financial and non-financial aspects
Supply chains are vital for the Fujitsu Group to supply products and services to its
customers. We drive our supply chain strategies from both financial and non-financial
viewpoints.
On the financial side, the Company is promoting collaboration with strategic part
ners based on its seven Key Focus Areas. To prepare a foundation to support busi
ness growth, we are working to standardize and automate operations when
procuring other companies’ services, and taking steps to deal with IT personnel
shortages by using IT personnel databases that we share with our partners. This
system ensures that we can secure the necessary personnel when needed.
On the non-financial side, aiming to realize responsible procurement in our own
supply chain, we have established a global coordination structure and we are working
together with each region in planning and operations. Moreover, we promote inte
grated efforts in which key social issues such as human rights, diversity, compliance,
and the environment are addressed in our supply chain. To this end, we coordinate
closely with relevant business units to promote initiatives.
Building responsible supply chains
In its supply chain, the Fujitsu Group will achieve responsible procurement that
embraces diversity and gives full consideration to human rights, the environment,
and health & safety. We are promoting sustainable procurement activities as
part of what Fujitsu aspires to be. In 2005, we formulated the Fujitsu Group CSR
Procurement Guideline, and in 2018 we adopted the Code of Conduct of the
Responsible Business Alliance (RBA), a shared global industry initiative, as part of the
guideline. In 2023, in light of demand for stronger human rights-related measures,
this was revised to the Fujitsu Group Sustainable Procurement Guideline and now
applies to the entire supply chain, including service suppliers. We are also working
with suppliers to reduce greenhouse gas (GHG) emissions in the supply chain by
holding briefing sessions with major suppliers and requesting that they set numerical
targets in line with international standards.
Furthermore, to ensure supply chain diversity, in each region and country we are
promoting procurement from companies with diverse characteristics, such as small
and medium-sized enterprises (SMEs) and companies owned by women or operated
by ethnic minorities. In addition, in selecting suppliers, we conduct due diligence and
provide training on information security and compliance.
PACT program
As a member of the Partnership for Carbon Transparency (PACT), which is spon
sored by the World Business Council for Sustainable Development (WBCSD), Fujitsu
participated in the PACT Implementation Program. This is the world’s first social
implementation program for linking product carbon footprint (PCF) information as
intercompany data. As a result, we have succeeded in making CO2 emissions visible
throughout actual supply chains.
In this implementation, Fujitsu took the supply chain of Fujitsu’s notebook PC
enclosures as an example. We used a PACT-compliant Fujitsu solution based on the
Pathfinder Network, a technical specification for data linkage. The “ESG Management
Platform/Fujitsu Track and Trust” and other solutions were used to calculate the CO2
emissions of PCFs and link actual data. We also identified issues in the real supply
chain, such as improving supplier engagement and building ecosystems, through
PCF data links using actual supplier data.
We have called on various suppliers to accelerate and expand the scale of this
activity, as well as to develop better interface solutions based on the experience of
the world’s first social implementation. We share the significance and methodology
of data linkage and PCF calculation, which is a measure for setting GHG emissions
targets and achieving reductions. As a provider of a PACT conformant solution, in
addition to our own efforts, we will contribute to the realization of a sustainable soci
ety by formulating a concrete action plan to achieve our goal of net zero emissions
throughout the value chain by fiscal 2040.
For more details, see the supply chain
Supply chain
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
63
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Fujitsu Compliance Week
Fujitsu actively and continuously communicates its management’s commitment to
compliance, including through direct communication with employees. In this way,
we promote and implement our Code of Conduct and GBS throughout the Group.
Along with personal messages from the president to all employees in Japan and
overseas repeatedly declaring the Company’s commitment to eliminating bid rig
ging, cartels, and other compliance violations, regional heads and Group company
managers overseas share messages on an ongoing basis stressing the importance of
compliance and a corporate culture of zero tolerance of fraud (zero tolerance).
In addition, we have designated December 9–15 as Fujitsu Compliance Week to
coincide with International Anti-Corruption Day as advocated by the United Nations.
During this week, the president and members of management at Fujitsu headquarters
along with the presidents of Group companies in each country share coordinated com
pliance messages with employees. We also provide an annually updated e-learning
course on compliance for all Group company employees and offer compliance-related
activities planned for each region.
In addition to these top-down initiatives, we collect ideas and strategies from
employees on how to avoid compliance violations through surveys. The valuable
insights gathered from these surveys are then published on the Group intranet,
providing an opportunity for employees to learn from each other.
Compliance training
We provide compliance e-learning for all Fujitsu Group executives and employees
annually (for approximately 120,000 people in 14 languages). The participation rate
is high, at over 95% annually. In fiscal 2023, we also
conducted training on fair business practices for
employees and around 211 partner companies. We
plan to continue these programs every year.
For more details, see compliance
Compliance
Fujitsu Way Code of Conduct
Fujitsu Way Code of Conduct
The Fujitsu Way contains a Code of Conduct,
which outlines the fundamental principles that
all Fujitsu Group employees should abide by,
as shown on the right. Fujitsu has also refined
its Fujitsu Way Code of Conduct by develop-
ing the Global Business Standards (GBS) in 14
languages to serve as a guide on legally com-
pliant behavior for all Fujitsu Group-affiliated
employees worldwide and applies the GBS
uniformly across the Fujitsu Group.
Global Compliance Program
Fujitsu has developed the Fujitsu Global
Compliance Program (GCP) to implement and
disseminate the Fujitsu Way Code of Conduct
and the GBS, and is working to maintain and
improve the Fujitsu Group’s global legal com
pliance structure. The GCP organizes Fujitsu’s
various compliance-related activities into five
pillars in a systematic manner, and promotes
external understanding of Fujitsu’s compliance
structure and its compliance activities, in addi
tion to clarifying what items Fujitsu needs to
address on a continual basis. Based on this
GCP, we implement various policies and initia
tives in each region, taking into account
factors such as each country and region’s
legal systems and government guidelines.
Participation in compliance
e-learning by all executives
and employees
Fiscal 2023
97.0%
Fiscal 2022
98.1%
Fiscal 2021
97.6%
For more details, see Global Business Standards (GBS)
For more details, see the Global Compliance Program
We respect
human rights.
We protect and
respect intellectual
property.
We comply with all
laws and regulations.
We maintain
confidentiality.
We act with fairness in
our business dealings.
We do not use our posi-
tion in our organization
for personal gain.
Policies & Procedures
Top Commitment & Resources
Training & Communication
Incident Reporting & Response
Monitoring & Review
Five pillars of the GCP
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
64
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Collaboration with stakeholders
World Economic Forum
In January 2024, the Annual Meeting of the World Economic Forum (WEF) was held
in Davos. Under the 2024 theme of “Rebuilding Trust,” forum discussions focused on
such topics as geopolitical risks, including the situation in the Middle East and
Ukraine, problems with new technologies represented by generative AI, and energy
and other resource issues.
On the topic of AI in particular, speakers reported progress on innovations in gener
ative AI, and discussions covered the risks posed by generative AI and how to deal
with them. Securing employment due to the spread of AI was noted as a major issue,
and other discussions covered responsible AI to ensure employment, cultivating digital
human resources, and the state of AI regulation.
At the forum, Takahito Tokita (Fujitsu’s CEO) and Hidenori Furuta (then COO, now
chairman), along with political and business leaders, were able to share WEF’s global
agenda, including economic security, sustainability and the future of new technologies
such as DX and generative AI.
In addition, for the second year in a row,
the Fujitsu Group set up its own booth at the
Fujitsu Uvance House, the only one of its kind
by a Japanese company. At this booth,
Yoshinami Takahashi (then corporate execu
tive officer, now COO) and Taeko Yamamoto
(corporate executive officer), and others net
worked with government officials and top
corporate executives from various countries.
At a roundtable discussion co-sponsored
with the Financial Times, we deepened our
relationships with the senior management of
key customers.
As a World Economic Forum Partner, the
Fujitsu Group will work toward realizing the
themes of this year’s Annual Meeting by link
ing its global agenda with the Group’s
Materiality, and leading the formation of a
global consensus as a technology company
working to achieve a net positive outcome.
World Business Council for Sustainable Development
The World Business Council for Sustainable
Development (WBCSD) is an international community
of more than 230 companies around the world. Fujitsu
has been participating in the WBCSD since 2013, and
since 2018, Fujitsu executives have also served as the
vice chair and a member of the Executive Committee,
working with member companies to accelerate the
system’s transformation through business in accordance with the vision* set forth by
the WBCSD.
Through its participation in wide-ranging WBCSD initiatives, Fujitsu works with
various organizations and companies across sectors to mutually enhance knowledge
and examine and enact best practices.
Main initiatives
Fujitsu embarks on digital collaboration with WBCSD for carbon neutral transpor
tation: Fujitsu has commenced digital collaboration with the WBCSD, Dutch con
sulting firm Arcadis, and British electricity company National Grid, leveraging
Fujitsu’s Fleet Optimization solution. By charging electric vehicles (EVs) during
hours when green power is abundant, fleet operators have seen a 15% reduction in
CO2 emissions from EV charging.
Development of Integrated Performance Management (IPM), a framework for
integrating ESG into decision-making processes: Fujitsu has been involved in the
IPM project, collaborating with other companies, and developed a report on IPM in
2023. This report presents Fujitsu’s case study and demonstrates the importance
of its strong commitment from corporate leaders to achieve the purpose.
We will continue to actively engage in the activities of the WBCSD, which shares
a common direction with the Group’s purpose, and contribute to the realization of
a sustainable future.
* WBCSD vision: A world in which more than 9 billion people are able to live well, within planetary boundaries, by 2050
For more details, see collaboration with external parties
For more details, see the implementation of a demonstration test
to achieve carbon-neutral transportation through data sharing
For more details, see Integrated Performance Management (IPM)
The Fujitsu Uvance House booth (inside)
The Fujitsu Uvance House booth (outside)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
65
Fujitsu Integrated Report 2024
Message from the CSSO
Overview of our sustainability
management
The environment
Human rights
Supply chain
Compliance
Collaboration with stakeholders
Corporate governance
Hiroki Hiramatsu
Director and Corporate
Executive Officer, CHRO
Takahito Tokita
Representative Director
CEO
Takuya Hirano
Director*
Kenichiro Sasae
Director*
Hidenori Furuta
Non-Executive Chairman
Yoshiko Kojo
Director*
Takeshi Isobe
Representative Director
CFO
Byron Gill
Director*
Chiaki Mukai
Director*
Catherine O’Connell
Audit & Supervisory Board
Member*
Yuuichi Koseki
Audit & Supervisory Board
Member
Youichi Hirose
Audit & Supervisory Board
Member
Koji Hatsukawa
Audit & Supervisory
Board Member*
Hideo Makuta
Audit & Supervisory Board
Member*
* Independent directors and Audit & Supervisory Board members
(Back row from left)
(Front row from left)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
66
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Q
What are your future aspirations as
Chairperson of the Board of Directors?
A
June 2024 marks six full years as an external direc
tor of the Fujitsu Group, so this new position has a
special significance for me. As chairperson, I believe it is
my mission to improve corporate governance while
emphasizing accountability, transparency, risk manage
ment, fairness, and responsibility. I will promote discus
sion at Board of Directors meetings, to help the Board
respond quickly and efficiently to changes in the busi
ness environment. I encourage our employees to “keep
taking on challenges, even when the going is tough,” so I
will also view chairperson as a tough assignment and
fulfill the responsibilities of the position.
Moreover, I will strive to engage in dialogue with
investors and other stakeholders. I understand that
investors expect me to communicate frankly with them
based on how Fujitsu’s management is viewed by the
Board of Directors, the majority of which is composed
of external directors, rather than to explain strategy
specifics or the details of execution. I will do my best
to take part in dialogue and meet these needs.
Q
What were issues the Board of Directors
focused on in fiscal 2023? What is your
assessment of progress on the 2023–2025 Medium-
Term Management Plan (medium-term plan)?
A
The issues the Board of Directors focused on
most were the progress of Fujitsu Uvance,
which is positioned as a growth driver, and its future
growth strategy. We also prioritized discussions on
topics such as quality control, addressing risks, and
the future direction of listed subsidiaries.
With regard to the three main initiatives of the
medium-term plan, I believe that its progress
deserves good marks to some extent. That Fujitsu
Uvance’s growth outpaced our forecast, and that rev
enue and profits in Service Solutions increased, are
signs that the evolution of the Group’s business port
folio and transformation of the business model are
progressing well. To reliably support customers’ mod
ernization, we have consolidated our knowledge in
the Modernization Knowledge Center, and are now
ready to make proposals that contribute to our
customers’ business.
On the other hand, we still have work to make our
international businesses more profitable. Through
structural reforms, we have made inroads on reorga
nizing existing businesses; the next step is to achieve
growth and profitability improvement. While the
transformation of our business model in the United
States is commendable, the scale of business is small.
We will continue to monitor the situation closely to
see if similar changes can be implemented in other
regions, as the executive team intends.
Non-financial indicators show a trend of improve
ment, but still require continued efforts, including in
categories such as employee engagement. Capital
allocation is also an important agenda item. To ensure
proper investment returns, the Board of Directors mon
itors the execution and effectiveness of investments in
R&D, offerings, human resources, internal DX, and many
other areas that are essential for sustainable growth.
Interview with the Chairperson of the Board of Directors
We asked Ms. Kojo, who is currently a member of Fujitsu’s Executive Nomination Committee and who was
appointed as chairperson of Fujitsu’s Board of Directors on June 24, 2024, about her aspirations as chairperson,
the focus in the role of supervision for medium- to long-term value creation, and the reasons for the selection of
new directors.
Yoshiko Kojo
Director
Professor of Department of
International Politics
Aoyama Gakuin University
School of International Politics,
Economics and Communication
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
67
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Q
What do you see as the key to sustainable
value creation looking toward 2030? What
do you think are the responsibilities that technol
ogy companies should fulfill in society?
A
We have set forth our vision for 2030, established
Materiality items to realize the vision, considered
what is necessary to realize these Materiality items, and
designed a medium-term plan accordingly. In other words,
the steady implementation of the medium-term plan is a
step toward enhancing the Group’s corporate value.
The Group is unique in that it uses technology to
achieve sustainability. The concept of solving social
issues through business already permeates the Group,
so the next step is to achieve sustainability through
Fujitsu Uvance. We recognize that we are in the phase
of implementing value creation through problem-solving,
by putting the concept into concrete offerings.
As a scholar of international politics, I believe that
technology companies have a significant role to play in
solving global issues, including those outlined in the
United Nations Sustainable Development Goals (SDGs).
In reality, it is clear that public–private partnerships are
essential to addressing these issues. Personally, I look
forward to the Group’s efforts to implement technolo
gies for digital services and contribute to constructing
a better society by creating new values.
Quality control of services and products, as well as
their enhancement, are extremely important issues for
fulfilling our responsibilities as a technology company.
The way issues are handled has a major impact on soci
ety and affects the Group’s reputation. Whenever a qual
ity issue arises, the Board of Directors discusses it in a
timely manner and regularly reviews the appropriateness
and progress of measures taken on the executive side.
Q
Please share with us what the Executive
Nomination Committee focuses on when
recommending new director candidates to the
Board of Directors.
A
Mr. Hiramatsu, the CHRO, was proposed as a
candidate because human resource manage
ment is critical to the Group’s business portfolio trans
formation. This is identified as an area of focus in the
medium-term plan’s resource strategy. I look forward
to the promotion of HR strategies that go beyond the
development of systems such as job-based human
resource management and lead value creation.
In nominating candidates for external director, we
use a skills matrix to focus our search on individuals
with global business acumen and a deep understand
ing of technology. We determined that Takuya
Hirano, with his extensive experience in technology
companies and management experience in both
Japan and the United States, was the best choice.
Some Board members, including myself, do not
have technology backgrounds. We are continuously
learning, such as by attending research institute pre
sentations, but this “information asymmetry” compared
with the executive side is not easy to fill. The Board of
Directors expects to benefit from Mr. Hirano’s advice,
capably provided based on his understanding of the
global competitive environment and cutting-edge
technology, as the Group aims to develop services that
can be competitive both in Japan and overseas.
Q
What discussions took place regarding the
new executive structure with a president
and five vice presidents?
A
I understand that the shift to a six-person top
management team is aimed at moving from
a system of centralized authority to one that allows
more efficient and faster decision-making. External
directors expressed concerns that delegating more
authority to the vice presidents under the new struc
ture might reduce the transparency of information-
sharing with the Board of Directors and the
decision-making process. The executive side
responded by quickly strengthening the information-
sharing mechanism and ensuring that Board members
could confirm information at any time, even on topics
not raised at management meetings.
Q
Please describe the status of succession
planning.
A
CEO succession planning is the biggest chal
lenge in the Executive Nomination Committee,
and we are constantly discussing development plans,
such as tough assignments to future management-
level personnel, to ensure that each individual is
enhancing his or her experience and skills. In addition
to executive officers, we also provide opportunities for
interaction with directors, so they can get a better feel
for the next generation of leaders. In April 2024, a con
ference was held between external directors, external
auditors, and young employees who volunteered to
meet with them, providing a forum for frank, spirited
dialogue. It was encouraging to realize that the younger
employees are strongly motivated to take advantage of
the posting system and other new personnel policies
for their own growth, and to see they understand their
own successes lead to the advancement of the Group.
Interview with the Chairperson of the Board of Directors
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
68
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Management
(As of October 1, 2024)
Executive Directors
Takahito Tokita
Representative Director
CEO
Number of years as director: 5
Number of Fujitsu shares held:
106,470*1
Born: September 2, 1962
Apr. 1988 Joined the Company
Jun. 2014 Head of Financial Systems Unit
Apr. 2015 Corporate Executive Officer
Jan. 2019 Corporate Executive Officer, EVP*2
Head of Global Delivery Group
Mar. 2019 Corporate Executive Officer, SEVP
Jun. 2019 Representative Director and CEO
(Chief Executive Officer)*3
Chairman of the Risk Management & Compliance
Committee*3
Oct. 2019 CDXO (Chief Digital Transformation Officer)
(until March 2023)
Hidenori Furuta
Non-Executive Chairman
Number of years as director: 5
Number of Fujitsu shares held:
78,010*1
Born: December 13, 1958
Apr. 1982 Joined the Company
May 2009 Head of Manufacturing Industry Solutions
Business Unit
Apr. 2012 Corporate Executive Officer
Apr. 2014 Corporate Executive Officer, EVP*2
Head of Global Delivery
Apr. 2018 Corporate Executive Officer, SEVP*2
(until May 2019)
Head of Digital Services Business
Jan. 2019 SEVP, Head of Technology Solutions Business
(until March 2020)
CTO (Chief Technology Officer) (until June 2021)
Jun. 2019 Representative Director and COO
(Chief Operating Officer) (until March 2024)
Apr. 2020 SEVP, Head of Global Solutions Business
Apr. 2021 COO (until March 2024)
Oct. 2021 CDPO (Chief Data & Process Officer) (until March
2023)
Apr. 2024 Non-Executive Chairman, Member of the Board
of Directors*3
Jun. 2024 Member of the Executive Nomination
Committee*3
Hiroki Hiramatsu
Director and
Corporate Executive Officer
CHRO
Number of years as director:
Newly appointed
Number of Fujitsu shares held:
27,360*1
Takeshi Isobe
Representative Director
CFO
Number of years as director: 4
Number of Fujitsu shares held:
37,700*1
Born: November 29, 1965
Apr. 1989 Joined the Company
Apr. 2019 Corporate Executive Officer*2 (until March 2020)
Head of Global Human Resources, Global
Corporate Functions
Jun. 2019 Head of Global Human Resources & Corporate
Affairs Unit, Global Corporate Functions
Apr. 2020 Corporate Executive Officer, EVP*2
(until March 2022)
Head of Global Human Resources & Corporate
Affairs Unit Health Promotion Unit
Apr. 2021 Corporate Executive Officer,
CHRO (Chief Human Resources Officer)*3
Apr. 2022 Corporate Executive Officer, EVP
(until March 2024)
Apr. 2024 Corporate Executive Officer, SEVP
Jun. 2024 Director and Corporate Executive Officer,
CHRO*3
Born: July 29, 1962
Apr. 1985 Joined the Company
Jun. 2014 VP of Corporate Controller Division,
Corporate Finance Unit
Apr. 2018 Corporate Executive Officer
Head of Corporate Finance Unit
(until March 2021)
Jun. 2019 Corporate Executive Officer, EVP*2
CFO (Chief Financial Officer)*3
Apr. 2020 Corporate Executive Officer, SEVP*2
Jun. 2020 Director and Corporate Executive Officer, SEVP*2
Apr. 2024 Representative Director, Corporate Vice
President, CFO*3
Non-Executive Directors
Chiaki Mukai
Independent Director
Specially Appointed Vice President of
Tokyo University of Science
Number of years as director: 9
Number of Fujitsu shares held:
39,050*1
Born: May 6, 1952
Apr. 1977 Staff of Department of Surgery, Keio University
School of Medicine (until November 1985)
Aug. 1985 Payload Specialist of National Space
Development Agency of Japan*4
(until March 2015)
Jun. 1987 Visiting Scientist of Division of Cardiovascular
Physiology, Space Biomedical Research Institute,
NASA Johnson Space Center
(until December 1988)
Oct. 2014 Vice President of Science Council of Japan
(until September 2017)
Apr. 2015 Vice President, Tokyo University of Science
(until March 2016)
Jun. 2015 Director*3
Apr. 2016 Specially Appointed Vice President of Tokyo
University of Science*3
Jul. 2016
Member of the Executive Nomination Committee
(until June 2021)
Member of the Compensation Committee
(until June 2018)
Jan. 2017 Chair of the Scientific and Technical
Subcommittee, UN Committee on the Peaceful
Uses of Outer Space (COPUOS)
(until January 2018)
Apr. 2018 Special Counselor of JAXA (until March 2021)
Jul. 2018
Chairperson of the Compensation Committee
(until June 2024)
Mar. 2019 Outside Director, Kao Corporation (until March
2024)
Nov. 2022 Director, Keio University*3
Feb. 2024 Advisor, TOPPAN Holdings Inc.*3
Apr. 2024 Corporate Executive Fellow, Kao Corporation*3
Jun. 2024 Chairperson of the Executive Nomination
Committee of the Company*3
Yoshiko Kojo
Independent Director
Chairperson of the Board of Directors
Professor of Department of
International Politics
Aoyama Gakuin University School of
International Politics,
Economics and Communication
Number of years as director: 6
Number of Fujitsu shares held:
13,120*1
Born: June 19, 1956
Apr. 1988 Assistant Professor of International Relations,
Faculty of Law, Kokugakuin University
Apr. 1991 Associate Professor of International Relations,
Faculty of Law, Kokugakuin University
Apr. 1996 Associate Professor of International Relations,
Department of Advanced Social and International
Studies, The University of Tokyo
Jun. 1999 Professor of International Relations, Department of
Advanced Social and International Relations,
The University of Tokyo (until March 2020)
Oct. 2010 President, Japan Association of International
Relations
Oct. 2012 Member of Advisory Board, Japan Association of
International Relations*3
Oct. 2014 Member of Science Council of Japan
(until September 2020)
Jun. 2018 Director*3
Jul. 2019
Member of the Executive Nomination Committee*3
Member of the Compensation Committee
(until June 2023)
Apr. 2020 Professor of Department of International Politics,
Aoyama Gakuin University School of International
Politics, Economics and Communication*3
Jun. 2024 Chairperson of the Board of Directors*3
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
69
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Non-Executive Directors
Kenichiro Sasae
Independent Director
President, The Japan Institute of
International Affairs
Number of years as director: 3
Number of Fujitsu shares held:
2,280*1
Born: September 25, 1951
Apr. 1974 Joined Ministry of Foreign Affairs
Mar. 2002 Director-General of Economic Affairs Bureau,
Ministry of Foreign Affairs
Jan. 2005 Director-General of Asian and Oceania Affairs
Bureau, Ministry of Foreign Affairs
Jan. 2008 Deputy Minister for Foreign Affairs
Aug. 2010 Vice-Minister for Foreign Affairs
Sep. 2012 Ambassador Extraordinary and Plenipotentiary of
Japan to the United States of America
Jun. 2018 President and Director General, The Japan Institute
of International Affairs
Jun. 2019 Outside Director, SEIREN CO., LTD.*3
Outside Director, MITSUBISHI MOTORS
CORPORATION*3
Dec. 2020 President, The Japan Institute of International
Affairs*3
Jun. 2021 Director*3
Jul. 2021
Member of the Compensation Committee*3
Mar. 2022 Outside Director, Asahi Group Holdings, Ltd.*3
Takuya Hirano
Independent Director
Co-founder,
Three Fields Advisors, LLC
Number of years as director:
Newly appointed
Number of Fujitsu shares held: 0*1
Byron Gill
Independent Director
Managing Partner, Indus Capital
Partners, LLC
Number of years as director: 1
Number of Fujitsu shares held: 0*1
Born: August 11, 1970
Dec. 1995 Joined Kanematsu USA Inc.
Feb. 2001 President, Hyperion Solutions Japan*6
Feb. 2006 General Manager, Enterprise Service,
Microsoft Co., Ltd.*7
Jul. 2007
General Manager, Enterprise Business &
Enterprise Service, Microsoft Co., Ltd.
Mar. 2008 General Manager, Enterprise Business,
Microsoft Co., Ltd.
Sep. 2011 General Manager, Multi-country,
Microsoft Central and Eastern Europe
Jul. 2014
Executive Vice President, Marketing & Operations,
Microsoft Japan Co., Ltd.
Mar. 2015 Representative Officer, Executive Deputy
President, Microsoft Japan Co., Ltd.
Jul. 2015
President, Microsoft Japan Co., Ltd.
(until August 2019)
Sep. 2019 Vice President, Global Service Partner Business,
Microsoft Corporation (until September 2022)
Jun. 2022 Outside Director, Yokogawa Electric
Corporation*3
Sep. 2022 Co-founder, Three Fields Advisors, LLC*3
Mar. 2023 Outside Director, Renesas Electronics
Corporation*3
Jun. 2024 Director of the Company,*3 member of the
Compensation Committee of the Company*3
Born: December 29, 1968
Sep. 1991 Joined Saison Corporation
Jul. 1997
Vice President,
Nikko Salomon Smith Barney Limited*5
Aug. 1999 Chief Representative, Japan Branch,
Soros Global Advisors, LLC
Aug. 2000 Founding Partner, Indus Capital Partners, LLC
Japan Representative, Indus Capital Advisors, Inc.
Jul. 2016
Managing Partner, Indus Capital Partners, LLC*3
Jun. 2023 Director*3
Member of the Compensation Committee
(until June 2024)
Jun. 2024 Chairman of the Compensation Committee of
the Company*3
Audit & Supervisory Board Members
Youichi Hirose
Audit & Supervisory Board Member
Number of years as Audit &
Supervisory Board Member: 7
Number of Fujitsu shares held:
33,130*1
Born: March 5, 1958
Apr. 1981 Joined the Company
Jun. 2009 Vice President, Corporate Controller, Corporate
Finance Unit (until June 2014)
Apr. 2012 Executive Vice President Vice Head of Corporate
Finance Unit (until March 2014)
May. 2013 Corporate Vice President (until March 2017)
Apr. 2014 Head of Corporate Finance Unit
Apr. 2017 Executive Advisor
Jun. 2017 Audit & Supervisory Board Member*3
Jun. 2018 External Audit & Supervisory Board Member,
FUJITSU GENERAL LIMITED*3
Yuuichi Koseki
Audit & Supervisory Board Member
Number of years as Audit &
Supervisory Board Member:
Newly appointed
Number of Fujitsu shares held:
25,240*1
Born: March 12, 1964
Apr. 1986 Joined the Company
Jun. 2015 Head of Business Management Unit,
Integration Services Business
Apr. 2016 Corporate Executive Officer (until December 2018)
Head of Business Management Unit, Japan Sales
(until March 2020)
Jun. 2018 Outside Director, DAIKO DENSHI TSUSHIN, LTD.
(until June 2024)
Apr. 2020 Head of Business Management Unit, Japan Region
Apr. 2021 Corporate Executive Officer, EVP*2
Head of Business Management Unit (until March
2023)
Apr. 2022 Corporate Executive Officer, EVP (until March
2024)
Apr. 2023 Co-Head of Business Management Unit (until
March 2024)
Apr. 2024 Senior Advisor
Jun. 2024 Audit & Supervisory Board Member*3
Koji Hatsukawa
Independent Audit & Supervisory
Board Member
CPA
Number of years as Audit &
Supervisory Board Member: 11
Number of Fujitsu shares held:
20,750*1
Born: September 25, 1951
Mar. 1974 Joined Price Waterhouse Accounting Office
Jul. 1991
Representative Partner, Aoyama Audit Corporation
Apr. 2000 Representative Partner,
ChuoAoyama PricewaterhouseCoopers
Oct. 2005 Director and Manager of International
Operations, ChuoAoyama
PricewaterhouseCoopers
May 2009 CEO, PricewaterhouseCoopers Aarata*8
(until May 2012)
Jun. 2012 Audit & Supervisory Board Member,
The Norinchukin Bank (until June 2021)
Jun. 2013 Audit & Supervisory Board Member*3
Jun. 2016 External Director (Audit & Supervisory
Committee member), Takeda Pharmaceutical
Company Limited*3
Management
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
70
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Audit & Supervisory Board Members
Hideo Makuta
Independent Audit & Supervisory
Board Member
Lawyer, GINZA CHUO LAW OFFICE
Number of years as Audit &
Supervisory Board Member: 4
Number of Fujitsu shares held: 0*1
Born: February 6, 1953
Apr. 1978 Public Prosecutor, Tokyo District Public
Prosecutors Office
Dec. 2006 Chief Prosecutor, Niigata District Public
Prosecutors Office
Apr. 2010 Chief Prosecutor, Chiba District Public
Prosecutors Office
Aug. 2011 Director, Criminal Affairs Department,
Supreme Public Prosecutors Office
Jul. 2012
Commissioner, Japan Fair Trade Commission
(until June 2017)
Sep. 2017 Registered as a Lawyer Advisor, Nagashima Ohno
& Tsunematsu (until February 2023)
Apr. 2019 Commissioner, Contract Monitoring Committee,
Japan Atomic Energy Agency*3
Jun. 2020 Audit & Supervisory Board Member*3
External Audit & Supervisory Board Member,
Daicel Corporation*3
Mar. 2023 Lawyer, GINZA CHUO LAW OFFICE*3
Catherine O’Connell
Independent Audit & Supervisory
Board Member
Principal, Catherine O’Connell Law
Number of years as Audit &
Supervisory Board Member: 2
Number of Fujitsu shares held: 0*1
Born: February 10, 1967
Nov. 1994 Anderson Lloyd Barristers & Solicitors
Mar. 2012 Head of Legal, Molex Japan LLC
Jun. 2017 Representative Director, O’Connell Consultants
(until December 2017)
Jan. 2018 Principal, Catherine O’Connell Law*3
Jun. 2022 Audit & Supervisory Board Member*3
Jun. 2023 External Audit & Supervisory Board Member,
Toyota Motor Corporation*3
*1 Number of shares held as of March 31, 2024. As the Fujitsu Group conducted a
10-for-1 stock split of its common stock effective on April 1, 2024, the number of
shares after the split is stated as converted.
*2 We eliminated the position names of Corporate Executive Officer (Senior Executive
Vice President/Executive Vice President) in April 2022 and Executive President in
April 2023 respectively, and changed to naming that demonstrates the scale of job
responsibility using the FUJITSU Level (SEVP, EVP, SVP, etc.).
*3 To present
*4 Currently, the Japan Aerospace Exploration Agency (JAXA)
*5 Currently, Citigroup Global Markets Japan Inc.
*6 The Japanese operations of Hyperion Solutions Corporation (currently, Oracle
Corporation)
*7 Currently, Microsoft Japan Co., Ltd.
*8 Currently, PricewaterhouseCoopers Japan LLC
Representative Directors / Corporate Executive Officers
Representative Director, CEO
Takahito Tokita
Representative Director, Corporate Vice President, CFO
Takeshi Isobe
Director and Corporate Executive Officer, CHRO
Hiroki Hiramatsu
Corporate Executive Officer, Corporate Vice President
Vivek Mahajan
Yoshinami Takahashi
Megumi Shimazu
Shunsuke Onishi
Corporate Executive Officers
Taizo Takahashi
Yoshihiko Oishi
Ryuji Kushida
Masaaki Moribayashi
Kazushi Koga
Tsuneo Hayashi
Tim White
Yuzuru Fukuda
Kohei Toyama
Takashi Yamanishi
Tomoko Tsukahara
Masahiro Ohta
Kyoko Mizuguchi
Taeko Yamamoto
Nicholas Fraser
Ryuichi Kubota
Junichi Saito
Seishi Okamoto
Shingo Mizuno
Shunsuke Baba
Naoko Otsuka
Sinead Kaiya
Masaru Yagi
Yoshiaki Eguchi
Yoshiko Furuhama
Paul Patterson
Mikihito Saito
Asif Poonja
Graeme Beardsell
For more details, see management
Management
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
71
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
4
2
Internal male
directors
Audit & Supervisory
Board members
(Japanese male)
External Audit & Supervisory
Board member
(Non-Japanese female)
3
2
Independent
male
directors
1
Non-Japanese
External Audit & Supervisory
Board members
(Japanese male)
2
1
Independent
female directors
Status of corporate governance
Basic approach to corporate governance
We regard corporate governance as a critical mechanism to fulfill the senior man
agement team’s mission in a manner befitting shareholders’ trust. This mission is
based on Our Purpose, and enables a form of business management that, rather
than pursuing short-term profits, earns the trust of customers and business partners,
motivates employees to work with vitality and pride, and contributes to society.
Through such business management, the Company will grow and enhance corpo
rate value over the medium to long term.
Corporate governance as a foundation for sustainable development
In the Materiality formulated in 2023, we identified governance and compliance as
key elements forming the foundation for sustainable development. We are commit
ted to continuously reviewing our corporate governance, enhancing disclosure to
facilitate collaboration with shareholders and all other stakeholders, and promoting
constructive dialogue with shareholders. Through these efforts, we aim to uphold
the trust placed in us by our shareholders.
Reasons for adopting our current corporate governance system
We believe that we can ensure a more robust supervisory function by having non-
executive directors supervise business execution, with independent oversight provided
by Audit & Supervisory Board members who do not participate in decision-making. In line
with this thinking, we have adopted the form of a company with an Audit & Supervisory
Board system, that establishes the Audit & Supervisory Board, which is composed of the
Audit & Supervisory Board members appointed as an independent agent.
The Board of Directors consists mostly of non-executive directors and independent
directors constitute a majority on the Board of Directors, as we believe this arrange
ment is ideally suited to the correction and remediation of errors, insufficiencies, and
recklessness in business execution. At the core of our non-executive directors are
external directors who have a high degree of independence and diverse perspectives.
In addition, we appoint at least one non-executive director from within the Company
to complement any lack of knowledge about or understanding of our business areas,
corporate culture, or other aspects of the Company. This arrangement enhances the
effectiveness of supervision and advice provided by non-executive directors.
Characteristics of Fujitsu’s corporate governance
Independent directors constitute a majority on the Board of Directors to ensure
the effectiveness of oversight
Directors and Audit & Supervisory Board members possessing the diversity and
skills needed to effectively fulfill their respective roles and responsibilities are
appointed to the Board of Directors and the Audit & Supervisory Board
The Board of Directors is strengthened and supported by external audits and over
sight provided by Audit & Supervisory Board members, as well as the voluntary
Executive Nomination Committee, Compensation Committee, and Independent
Directors & Auditors Council, all of which are composed of non-executive directors
Discussions pertaining to the medium- to long-term direction of the Group have
been invigorated by the establishment of the Independent Directors & Auditors
Council as a forum for independent directors and auditors to share information
and exchange opinions
The Board of Directors, the Executive Nomination Committee, and the
Compensation Committee are chaired by independent directors to ensure the
objectivity and transparency of discussions
Diversity of the Board of Directors
(As of June 24, 2024)
Diversity of the Audit & Supervisory Board
(As of June 24, 2024)
For more details, see our Corporate Governance Policy
For more details, see corporate governance
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
72
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Status of corporate governance
Initiatives to strengthen corporate governance
Reduced directors’ terms to one year
To further clarify directors’ management
responsibilities
Established the Executive Nomination
Committee and Compensation Committee
To ensure the transparency and objectivity of
the process for choosing candidates for execu
tives and the process of determining compen
sation, and to ensure an appropriate
compensation system and level
Established the Independent Directors &
Auditors Council
To support independent directors and Audit &
Supervisory Board members, who maintain a
certain degree of separation from the execu
tion of business activities, in consistently gain
ing a deeper understanding of Fujitsu’s business
Established the Corporate Governance Policy
To explain to shareholders basic policies on the
establishment and operation of systems in light
of basic approaches to corporate governance
Introduced a performance-based stock
compensation plan
To incentivize executive directors to
improve medium- to long-term corporate
value and to promote shareholder-oriented
business management
Abolished senior executive advisor/advisor
system
To clarify management responsibility and
strengthen corporate governance, Fujitsu will
enter into commission contracts with retiring
officers, who will be known as “senior advisors”
or “senior fellows,” on an individual basis and
subject to a resolution of the Board of Directors,
in cases where such treatment of retiring offi
cers is indispensable as they are to be appointed
as an officer of an unaffiliated organization, or
where it is judged that the individual is particu
larly useful for Fujitsu’s business operations
Made independent directors a majority on the
Board of Directors
Among nine directors, five independent direc
tors constitute a majority. Our aim is to
increase the transparency and objectivity of
deliberations
Revised the executive compensation system (1)
Earnings per share (EPS) and non-financial
indicators were added to the evaluation indi
cators for executive compensation to further
enhance the link between earnings and share
holder value and to create a more transparent
compensation system
Appointed independent directors as chairper
son of the Board and other committees
Independent directors are appointed as
chairperson of the Board, chairperson of the
Executive Nomination Committee, and chair
person of the Compensation Committee in
order to strengthen the supervisory function
Comprehensively revised the “Basic Policy
on Corporate Governance” in line with the
revision of the Corporate Governance Code
To achieve the higher level of governance
expected of a company on the Prime Market
of the Tokyo Stock Exchange, and to achieve
further sustainable growth and increase cor
porate value over the medium to long term
Introduced a policy for the return of compensation (malus and clawback policy)
To reinforce the discipline of executive directors and prevent improper accounting
and serious compliance violations
Formulated Stock Holding Guideline
To foster long-term value sharing with shareholders and promote management from
a more shareholder-oriented perspective by encouraging executive directors and
external directors who are eligible to receive stock compensation to hold at least
a certain number of Company shares
Introduced a stock compensation plan for external directors based on restricted stock
units
To promote further value sharing with shareholders and encourage external directors
to contribute to sustainable and long-term increases in corporate value
Revised the executive compensation system (2)
To further enhance the link with the new Medium-Term Management Plan, of the eval
uation indicators for bonuses, the financial indicator of core free cash flow was added,
while the non-financial indicator of diversity leadership (ratio of female managers) was
added to replace DX Promotion Indices
Revised the executive compensation system (3)
To further promote management that emphasizes medium- to long-term profitabil
ity and the sharing of value with shareholders, we are increasing the weighting of
performance-based stock compensation, retaining the performance-based stock
compensation evaluation indicators of consolidated operating profit and EPS, and
replacing consolidated revenue with total shareholder return (TSR)
Revised the benchmark policy for compensation levels
To further enhance competitiveness in securing management personnel and to
strengthen the commitment of the management team to achieving performance tar
gets, we are adjusting the benchmarks for compensation levels to be focused more on
global companies rather than those in Japan with similar business lines and business scale
Expanded scope of restricted stock unit plan
To further promote the sharing of value with shareholders, we are expanding the
scope of the plan’s eligible recipients, previously limited to external directors, to also
include directors from within the Company who do not execute operations
2006
2009
2015
2017
2018
2019
2021
2020
2022
2023
2024
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
73
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Status of corporate governance
1. Overview of corporate governance structure
Roles and composition of key boards, committees, and councils
Board of
Directors
• Serves as a body for making important decisions and overseeing
management
• Mainly oversees and acts in an advisory capacity in relation to the
management execution of directors
• Composed mainly of non-executive directors, with a majority of the
Board of Directors consisting of independent directors
• At least one non-executive director appointed from within the Company
• One-year term of office for Directors
• As of June 24, 2024, the Board of Directors is composed of nine
members, of whom three are executive and six are non-executive di
rectors (including five independent directors). The Board of Directors
is chaired by an independent director.
Audit &
Supervisory
Board
• From an independent position, audits and provides oversight of the
Board of Directors as well as management execution functions, and
conducts accounting audits
• Four-year term of office for Audit & Supervisory Board members
• As of June 24, 2024, the Audit & Supervisory Board is composed of five
members, of whom two are full-time Audit & Supervisory Board mem
bers and three are external Audit & Supervisory Board members.
Executive
Nomination
Committee and
Compensation
Committee
• Serve as advisory bodies to the Board of Directors
• The Executive Nomination Committee deliberates on candidates
for director and Audit & Supervisory Board member positions in ac
cordance with the Structural Framework of the Corporate Governance
Structure and the Procedures and Policy of Directors’ and Auditors’
Nomination/Dismissal stipulated in the Company’s Corporate Gover
nance Policy, and submits recommendations to the Board of Directors.
• The Compensation Committee submits recommendations on the level
of base compensation and the method for calculating performance-
based compensation to the Board of Directors in accordance with
the Procedures and Policy of Directors’ and Auditors’ Nomination/
Dismissal stipulated in the Company’s Corporate Governance Policy.
• As of June 24, 2024, the Executive Nomination Committee is com
posed of two independent directors and one non-executive director;
the Compensation Committee is composed of three independent
directors. (For details on committee members, please see “Members
of the Board of Directors and Audit & Supervisory Board” on page 75.)
• As of June 24, 2024, both committees are chaired by independent directors.
Independent
Directors &
Auditors
Council
• Serves as a framework under which independent directors and
independent Audit & Supervisory Board members share informa
tion and further their understanding of the Company’s businesses.
Council members discuss the medium- and long-term direction of
the Company, share information, and exchange viewpoints so that all
members can formulate their own opinions.
• Composed of all independent directors and independent Audit &
Supervisory Board members
(As of June 24, 2024)
Fujitsu’s corporate governance structure
Shareholders / Shareholders’ Meeting
Election / Dismissal
Oversight
Oversight
Report
Report
Report
Supervision
Supervision
Coordinate
Accounting audit /
Internal control audit
Audit
Internal control promotion
Internal audit
Report
Coordinate
Coordinate
Report
Coordinate
Report
Duty to establish a structure
Oversight
Advice
Recommend
Audit / Oversight
Others
Share information / Formulate opinion
Consult
Election / Dismissal
Election / Dismissal
Board of Directors
9 members of the Board
Representative Director and CEO
Executive Directors
3 members of the Board
Corporate
executive
officers
Executive
Management
Council
Organizations,
Group
companies
Risk Management & Compliance Committee
Non-Executive Directors
6 members of the Board
(including 5 independent directors)
Internal Audit Division
Audit &
Supervisory
Board
5 Audit &
Supervisory
Board members
(including 3
independent
Audit &
Supervisory
Board members)
Accounting
Auditor
Compensation Committee,
Executive Nomination
Committee
Basic Policy on the Internal Control Structure
Independent Directors & Auditors Council
5 independent directors and
3 independent Audit & Supervisory Board members
Corporate governance structure
Internal control system
Internal Control Division
Business Execution Organs
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
74
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Status of corporate governance
2. Directors / Audit & Supervisory Board members
Independence standards for external directors
and auditors
The Company has established independence stan
dards and evaluates the independence of external
directors and auditors based on these standards.
For more details, see our Corporate Governance Policy
Skills of directors and Audit & Supervisory Board
members
As a global company with the purpose “to make
the world more sustainable by building trust in
society through innovation,” Fujitsu Limited has
identified requisite qualities including diversity and
the necessary skills for the Board of Directors and
Audit & Supervisory Board members to provide
appropriate advice and supervision in their respec
tive roles, and summarizes and discloses the quali
ties and skills in a matrix.
Members of the
Board of Directors
and Audit &
Supervisory Board
(As of June 24, 2024)
Male
Female
Chairperson
Member
Nine members of the Board of Directors
Five members of the Audit & Supervisory Board
Executive
Non-executive
Non-executive
Internal
Independent
Internal/Full-time
Independent
Representative
director
Representative
director
Chairperson of
the Board of Directors
Takahito
Tokita
Takeshi
Isobe
Hiroki
Hiramatsu
Hidenori
Furuta
Chiaki
Mukai
Yoshiko
Kojo
Kenichiro
Sasae
Byron
Gill
Takuya
Hirano
Youichi
Hirose
Yuuichi
Koseki
Koji
Hatsukawa
Hideo
Makuta
Catherine
O’Connell
Executive Nomination
Committee
Compensation Committee
Independent Directors &
Auditors Council
Name
Nationality
Independent
Skills matrix
Corporate
management
Finance and
investment
Global
Technology
ESG, academia,
and policy
Non-Executive Chairman
Hidenori Furuta
Japan
Representative Director, CEO
Takahito Tokita
Japan
Representative Director, CFO
Takeshi Isobe
Japan
Director and Corporate Executive
Officer, CHRO
Hiroki Hiramatsu
Japan
Independent Director
Chiaki Mukai
Japan
Independent Director
Yoshiko Kojo
Japan
Independent Director
Kenichiro Sasae
Japan
Independent Director
Byron Gill
United States
Independent Director
Takuya Hirano
Japan
Name
Nationality
Independent
Skills matrix
Legal affairs and compliance
Finance and accounting
Operating process
Full-time Audit & Supervisory Board
Member
Youichi Hirose
Japan
Full-time Audit & Supervisory Board
Member
Yuuichi Koseki
Japan
Audit & Supervisory Board Member
Koji Hatsukawa
Japan
Audit & Supervisory Board Member
Hideo Makuta
Japan
Audit & Supervisory Board Member
Catherine O’Connell
New Zealand
Skills matrix of the Board of Directors and Audit & Supervisory Board members (As of June 24, 2024)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
75
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Status of corporate governance
3. Executive compensation
Policy for determining executive compensation
[Method of determining the amount of remuneration for directors]
In order to make the executive compensation system more transparent, we estab
lished the Compensation Committee by resolution of the Board of Directors in
October 2009. In addition, the policy for determining the details of individual director
compensation (hereinafter referred to as the “Policy for Determination”) is determined
by the Board of Directors based on the report of the Compensation Committee.
In accordance with the following review of executive compensation, compensa
tion for directors for fiscal 2024 and thereafter will be determined by resolution of
the Board of Directors after deliberation by the Compensation Committee, and
compensation for Audit & Supervisory Board members will be determined based on
discussions by Audit & Supervisory Board members, within the total amount of com
pensation determined by resolution of the Annual Shareholders’ Meeting, based on
the framework of this Policy for Determination (“revised policy”) after changes in
accordance with said review.
[Review of executive compensation for fiscal 2024 and thereafter]
At meetings held on March 28 and May 29, 2024, the Board of Directors resolved to
make changes to executive compensation from fiscal 2024, based on a recommenda
tion from the Compensation Committee. Of these, the revision to the performance-
based stock compensation plan for executive directors and the revision to the
restricted stock unit plan for external directors were passed as resolutions at the
124th Annual Shareholders’ Meeting held on June 24, 2024. The table below
describes the revised executive compensation from fiscal 2024.
Item
Before revision
After revision
Policy on compensation levels (benchmarks for
compensation levels according to position and
responsibilities)
Other companies with similar
business lines and business
scale (mostly in Japan)
Global companies in Japan and
overseas with similar business
lines and business scale
Benchmark composition ratio for compensation
(ratio for base compensation, bonuses, and
performance-based stock compensation)
1:1:3
1:1:4
Performance-based stock
compensation
Maximum amount
Up to ¥1.2 billion annually
Up to ¥2.5 billion annually
Total number of
shares allocated
No more than 750,000 shares
per year
No more than 1,000,000 shares
per year
Evaluation
indicators
Consolidated revenue, operating
profit, and EPS
Removal of consolidated reve
nue and addition of TSR
Restricted stock units
Eligible recipients
External directors
Non-executive directors
(external directors and directors
appointed from within the
Company not responsible for
business execution)
Maximum amount
Up to ¥100 million annually
Up to ¥100 million annually
(up to ¥90 million for external
directors)
Total number of
shares allocated
No more than 60,000 shares per
year
No more than 60,000 shares per
year (no more than 53,000
shares for external directors)
Basic policy on executive compensation
The Company has established the following basic policy on compensation for executive
directors to secure the exceptional talent required to manage the Fujitsu Group and
achieve its Purpose “to make the world more sustainable by building trust in society
through innovation,” and to further strengthen the link between its financial performance
and shareholder value while at the same time improving its transparency.
I. Policy on the compensation system and compensation levels
• The remuneration system for executive directors consists of the following: “base compensation,”
which is a fixed monthly amount in accordance with the position and responsibilities; “bonuses,”
which are linked to short-term business performance; and “stock compensation,” which is
a medium- to long-term incentive that emphasizes the connection to shareholder value.
• With the aim of setting competitive compensation that contributes to securing and main
taining exceptional talent, compensation levels and compensation ratio by type shall be
determined based on the financial position of the Company, and analyzing the compensa
tion composition ratio and compensation levels for each executive position and responsi
bility at global companies in Japan and overseas with similar business lines and similar
scale to those of the Company as benchmarks.
• The ratio of performance-based compensation (bonuses and performance-linked stock
compensation) to the total compensation for executive directors shall be determined so
as to strengthen the link between the Group’s financial performance and shareholder
value by setting the higher ratio to the greater responsibilities.
• Individual director’s remuneration shall be determined by the Board of Directors after delib
eration at the Compensation Committee to ensure objectivity, transparency, and fairness.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
76
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
(Reference) Executive compensation items and payment recipients
Recipient
Base compensation
Bonuses
Stock compensation
Performance-based
stock compensation
Restricted stock units
Executive directors
—
Non-executive
directors
—
—
Audit & Supervisory
Board members
—
—
—
II. Our perspectives on each portion of executive compensation
[Base compensation]
Base compensation is paid to all executives (directors and Audit & Supervisory Board
members). All executives are paid a fixed monthly amount in accordance with their
position and responsibilities.
[Bonuses]
• Bonuses shall be paid to executive directors. The amount of a bonus shall reflect business
performance in the respective fiscal year.
• As a specific evaluation indicator and calculation method, the Company shall adopt an “on
target model” to determine the bonus amount to be paid by setting the base amount in
accordance with the position and responsibilities in advance. The bonus amount is calcu
lated by multiplying the base amount by the coefficient in accordance with the following
elements: the degree of achievement of the performance targets for the fiscal year based
on the Company’s consolidated revenue, adjusted consolidated operating profit, and core
free cash flow,*1 (financial management target indicators), growth from the previous fiscal
year in the non-financial management target indicators of Customer NPS®,*2 employee
engagement,*3 and diversity leadership (ratio of female managers), and acquisition of the
highest evaluation from a third-party assessment organization on ESG initiatives.
*1 Free cash flow excluding special items, such as from sales of businesses, acquisitions, and business model transformation expenses
*2 Net Promoter ScoreSM, an indicator to measure “customer loyalty,” which presents the degrees of trust and attachment of customers to
companies, products, and services, in order to understand the degree of improvement and depth of the customer experience (CX)
*3 An indicator to measure employees’ willingness and attachment to work voluntarily and independently, and to contribute to their com
pany, with empathy for the company’s direction and purpose
[Stock compensation]
(1) Performance-based stock compensation
• Bonuses shall be paid to executive directors. The amount of a bonus shall reflect business
performance in the respective fiscal year.
• As a specific indicator and calculation method, the Company shall set a base number of
stock units in accordance with the position and responsibilities in advance, and calculate
the number of stock units each fiscal year and at the end of the performance evaluation
period by multiplying the base number of stock units by the coefficient in accordance
with the degree of achievement of performance targets for the performance evaluation
period (three years) based on the Company’s financial management target indicators of
adjusted consolidated operating profit and adjusted EPS, as well as relative TSR compared
to the TOPIX growth rate and the result of comparison of TSR for each company in a pre-
selected peer group at the end of the performance evaluation period. At the end of such
period, the total number of shares for each eligible recipient is calculated, with one stock
unit corresponding to one share. A portion of the total number of shares is paid in cash in
consideration of tax liabilities likely to be incurred by recipients owing to the payment of
compensation, while the remainder is allocated in shares of the Company.
Base number of
stock units
X
=
Coefficient based on financial manage
ment target indicators (adjusted consoli
dated profit, adjusted EPS, and TSR)
Cash payments and allot
ments of shares
(2) Restricted stock units
• Restricted stock units (under a post-delivery type incentive plan that grants shares as
compensation after confirming the right to receive these units, which is subject to a cer
tain period of continuous service) shall be granted to non-executive directors, in order to
share profits with shareholders and encourage their contribution to the sustainable
enhancement of corporate value.
• For each fiscal year, the Company sets in advance a number of stock units according to
the eligible recipient’s position, and at the end of the period of continuous service (three
years), the total number of shares is calculated, with one stock unit corresponding to one
share. A portion of the total number of shares is paid in cash in consideration of tax liabili
ties likely to be incurred by the recipient owing to the payment of compensation, while
the remainder is allocated in shares of the Company.
[Benchmark composition ratio for compensation]
The benchmark ratio for base compensation, bonuses, and performance-based
Status of corporate governance
Base
amount X
+
Coefficient based on financial man
agement target indicators (consoli
dated revenue, adjusted consolidated
operating profit, and core free cash
flow)
Coefficient based on non-financial
management target indicators
(Customer NPS, employee engage
ment, diversity leadership) and third-
party assessment of ESG initiatives
=
Payment
amount
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
77
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
stock compensation shall be 1:1:4 for the representative director and CEO, with the
percentage for performance-based compensation set higher than that for other
executive directors. The benchmark ratio for base compensation (excluding allow
ances) and restricted stock units for external directors shall be 7:3.
Benchmark composition ratio for compensation for the representative director and CEO
[Stock Holding Guideline]
The Company has established Stock Holding Guideline with the aim of promoting
long-term value sharing with shareholders. During their terms of office, directors
who are eligible to receive stock compensation shall make an effort to hold at least
the number of Company shares determined as corresponding to their position. The
representative director and CEO shall endeavor to hold shares equivalent to twice
their annual base compensation within four years after taking office and continue to
hold them during their term of office.
[Return of compensation (malus and clawback policy)]
In the event of inappropriate accounting, including material ex-post adjustments to
past-year financial results or serious misconduct or compliance violations during the
term of office, the Company may demand a reduction in or return of performance-
based compensation (bonuses and performance-based stock compensation) from
an executive director (including executive directors who have retired less than two
years ago), based on a decision of the Board of Directors after deliberation by the
Compensation Committee.
As resolved at the Annual Shareholders’ Meeting, the total amount of base com
pensation and bonuses to directors shall not exceed ¥1,200 million per year (of
which, the portion for external directors shall not exceed ¥150 million per year). The
performance-based stock compensation for executive directors shall not exceed
¥2,500 million per year, while the total number of shares to be allocated shall not
exceed 1 million shares per year. The restricted stock units for non-executive direc
tors shall not exceed ¥100 million per year, while the total number of shares to be
allocated shall not exceed 60,000 shares per year (of which, the portions for external
directors shall not exceed ¥90 million and 53,000 shares per year, respectively).
The amount of base compensation for Audit & Supervisory Board members shall
not exceed ¥150 million per year.
4. Succession planning for senior management
At Fujitsu, we consider succession planning for senior management, including the
CEO, to be one of the most important issues for the sustained improvement of the
Group’s corporate value.
In succession planning, we make every effort to ensure a transparent and objec
tive process by having the voluntary Executive Nomination Committee spearhead
discussions and evaluations and report the results thereof to the Board of Directors.
This committee is composed solely of non-executive officers, the majority of whom
are independent external directors and one of whom serves as chair.
The Executive Nomination Committee defines the requirements for senior man
agement and makes use of reviews and internal and external assessments of the
candidates to verify, based on multifaceted information, their preparedness includ
ing suitability, skills, and experience with regard to roles they would be expected to
fulfill in the future. The members of the committee also arrange opportunities for
direct communication with the candidates in an effort to learn more about their
character, thereby continuously nurturing and evaluating candidates for future
senior management with the aim of identifying the most suitable successors.
Furthermore, the role of the CEO in this process includes developing candidate pro
posals and development plans and explaining them to the Executive Nomination
Committee (once a year), providing challenges and executive development programs
necessary for the growth of each candidate based on the discussions and advice of
the committee, and regularly reporting to the committee on the performance and
development progress of candidates. The CEO continuously collaborates with the
committee and participates in this process by committee meetings as an observer.
Succession planning process
Status of corporate governance
Definition of
requirements for
senior management
Selection
Training
Evaluation
Identification
• The requirements of
future senior manage
ment are defined in
anticipation of changes
in the operating environ
ment (roles, skills, expe
riences, personality, etc.)
• Multiple suitable candi
dates are selected fol
lowing a periodic
review process (once a
year)
• Tough assignments
• Undertaking of external
programs for managers
• Growth support from the
CEO
• Regular reviews of per
formance and training
progress
• Internal and external
assessments
• Narrowing down of
candidates with refer
ence to evaluation
results and other
factors
Base
compensation
Bonuses
Performance-based stock compensation
1
1
4
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
78
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
5. Policy for strategic shareholdings
The Company holds only those strategic shares with clear-cut objectives and positive,
meaningful significance. The Board of Directors examines the weighted average capital
cost of the Company as the standard to evaluate quantitatively whether returns (quan
titative factors such as dividends and the state of transactions) or risks are well bal
anced with the cost. If quantitative significance in shareholdings is not found, the Board
of Directors will further evaluate whether there is a qualitative reason that supports the
rationale for continuing to hold those shares and will discuss the continuation of such
holdings. During the fiscal 2023, the Company sold six issues, and at the Board of
Directors meeting held on June 21, 2024, the Board discussed the continuation of the
remaining strategic shareholdings held by the Company at the end of the fiscal year.
The Company deals
with strategic shareholders
on an equal footing, just as
it does with other business
partners. Even when stra
tegic shareholders indicate
their sale of shares, we do
not prevent them from
selling. That said, we
sometimes call upon them
to consider the timing of
the sale or the ways of
selling their shares.
6. Views and policies for Group management and measures to ensure the
effectiveness of corporate governance
Fujitsu Limited manages the Fujitsu Group with the aim of achieving continuous
growth and the generation of medium- to long-term corporate value of the entire
Group, while also urging each Group company to realize its potential to the maximum
extent possible. Where the Company needs to seek resources from outside because
they are not available within the Group, we may utilize equity-method affiliates for
purposes such as risk diversification, compliance with foreign investment regulations,
or completing the process of complete acquisition or business withdrawal.
For some subsidiaries and equity-method affiliates, we publicly list them with the
aim of further improving their business value through diversification of the capital
procurement necessary for sustainable growth and enhancing the value of the entire
Group. By publicly listing subsidiaries and equity-method affiliates it is possible to
focus on investment in specific businesses rather than just in the Group as a whole,
thus contributing to diversifying investment opportunities. As there are some con
cerns regarding the possibility of a conflict of interest with minority shareholders and
our publicly listed subsidiaries and equity-method affiliates, we respect the indepen
dence of their management and make efforts to provide advice and support to
enhance the corporate value of relevant listed subsidiaries and equity method associ
ates by holding reporting sessions on an as-needed basis. To further promote our pol
icies for group management, we established a department in February 2020 as a
corporate function that specializes in formulating and conducting plans and measures
for the most suitable group formation and corporate governance, thus handling the
management of the Group including listed subsidiaries and equity-method affiliates.
Our policy is to turn non-core listed companies and equity-method affiliates into
strong independent businesses. We will consider their independence from the follow
ing perspectives: ensuring sustainable growth of the relevant business, maximizing
the Company’s asset value, and considering the best timing for independence.
Measures to ensure the effectiveness of corporate governance
Fujitsu Limited understands that its publicly listed subsidiaries and equity-method affili
ate make efforts to enhance corporate governance and provides support for these
efforts. All listed subsidiaries and equity-method affiliate are ensured their indepen
dence by appointing independent directors and directors dispatched from the Company
to help maximize their corporate value. Also, all listed subsidiaries become a company
with an Audit & Supervisory Committee to strengthen corporate governance.
7. Review of corporate governance in fiscal 2023
In fiscal 2023, the Board of Directors identified the following six themes that should
be focused on in light of the Group’s operating environment. Throughout the year,
these themes were intensively discussed and continuously monitored.
Status of corporate governance
• Progress on the new Medium-Term
Management Plan
• Business portfolio transformation
• Improving international business profitability
• Monitoring and responding to quality and
security incidents
• Succession planning for directors and other
officers
• Methods of efficiently monitoring each theme
160,000
120,000
80,000
40,000
0
320
(Fiscal years)
240
160
80
0
2019
2020
2021
2022
2023
(Millions of yen)
(Number of issues)
Amount of strategic shareholdings recorded on the
balance sheet and number of shares held
Amount of unlisted shares
(left scale)
Amount of shares other than
unlisted shares (left scale)
Total number of issues
held (right scale)
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
79
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Major activities of the Independent Directors & Auditors Council
The Independent Directors & Auditors Council met eight times in fiscal 2023. The
members continued to discuss, share information, and exchange viewpoints on the
Company’s management direction and important management matters associated
with business restructuring, including M&As by Fujitsu Limited and the Fujitsu Group.
Major activities of the Executive Nomination Committee
In fiscal 2023, the Executive Nomination Committee met nine times to consider pro
posals for the nomination of representative directors, including the CEO, as well as
for director and Audit & Supervisory Board member candidates and a proposal for
the nomination of a candidate for chairperson of the Board. The committee also
examined succession plans for the CEO and other executives, considered candidates
for external directors, and carried out mutual evaluations of non-executive directors.
Major activities of the Compensation Committee
The Compensation Committee met seven times in fiscal 2023 to consider revisions
to the level of compensation for directors, revisions to the details of performance-
based compensation for executive directors, and the introduction of stock compen
sation for non-executive directors. After considering these items, it provided its
findings to the Board of Directors. The committee also examined the amounts of
compensation paid to individual executive directors in the fiscal year.
Details of executive compensation in fiscal 2023
The remuneration for directors and Audit & Supervisory Board members for fiscal
2023, as presented in the table below, was determined based on the policy decided in
fiscal 2023, prior to the fiscal 2023 revision to the compensation policy for executive
directors as described in “3. Executive compensation.” Please refer to the following for
the policy for deciding executive compensation before the review.
For more details of our policy on determining compensation in fiscal 2023,
see the 2023 Fujitsu Integrated Report
Details of remuneration
Position
Number of
recipients
Remuneration type
Total amount of
compensation
Base
remuneration
Bonuses
Performance-
based stock
compensation
Restricted stock
units
Directors (internal)
4
¥246 million
¥125 million
¥411 million
–
¥783 million
External directors
6
¥66 million
–
–
¥12 million
¥79 million
Audit & Supervisory
Board members
(internal)
2
¥72 million
–
–
–
¥72 million
External Audit &
Supervisory Board
members
3
¥45 million
–
–
–
¥45 million
1. The above includes directors and Audit & Supervisory Board members who resigned in fiscal 2023.
2. The total amount of monetary compensation for directors was resolved to be within ¥1,200 million or less per year (including ¥150 mil
lion or less per year for external directors) at the 121st Annual Shareholders’ Meeting held on June 28, 2021. At this Annual Shareholders’
Meeting, the total amount of non-monetary compensation for executive directors, established separately from the above monetary
compensation, was resolved to be ¥1,200 million or less per year and the total number of shares of common stock of the Company to
be allocated was set within 75,000 shares per year (and within 750,000 shares per year after the 10-for-1 split of its common stock
effective on April 1, 2024). As of the close of the 121st Annual Shareholders’ Meeting, the number of directors was nine (including three
executive directors and five external directors). At the 123rd Annual Shareholders’ Meeting held on June 26, 2023, the total amount of
non-monetary compensation for external directors, established separately from the above monetary compensation, was resolved to be
¥100 million or less per year and the total number of shares of common stock of the Company to be allocated was set within 6,000
shares per year (and within 60,000 shares per year after the 10-for-1 split of common stock, effective on April 1, 2024). As of the close
of the 123rd Annual Shareholders’ Meeting, the number of external directors was five. The Company is paying the compensation shown
in the above table, which is within these limits.
3. The total amount of compensation for Audit & Supervisory Board members was resolved to be ¥150 million or less per year at the 111th
Annual Shareholders’ Meeting held on June 23, 2011. As of the close of the 111th Annual Shareholders’ Meeting, there were five Audit &
Supervisory Board members (including three external Audit & Supervisory Board members). The Company is paying the compensation
shown in the above table, which is within these limits.
4. Performance-based stock compensation and restricted stock units show the amounts that were recorded as expenses in the fiscal year
ended March 31, 2024.
Performance-based compensation indicators: Targets and results (financial indicators)
Status of corporate governance
Indicator
Fiscal 2023 target
Fiscal 2023 result
Consolidated revenue
¥3,860.0 billion
¥3,756.0 billion
Adjusted consolidated operating profit
¥340.0 billion
¥283.6 billion
Core free cash flow
¥225.0 billion
¥197.2 billion
The target for EPS, which is used to evaluate performance-based stock compensation, is
set at the beginning of each performance evaluation period (three years), as shown below.
Period of performance-based stock compensation
Target
Fiscal 2023 result
Adjusted EPS
Third year of period beginning in fiscal 2021
¥124.5
¥125.6
Second year of period beginning in fiscal 2022
¥124.5
First year of period beginning in fiscal 2023
¥116.0–118.0
Attendance of external Audit & Supervisory Board
members at Board of Directors meetings
96.3%
Attendance of external Audit & Supervisory Board
members at Audit & Supervisory Board meetings
97.0%
Board of Directors meetings
(including extraordinary meetings)
18 (6)
Audit & Supervisory
Board meetings
(extraordinary Audit &
Supervisory Board meetings)
11 (2)
Attendance of external directors at Board of Directors
meetings
95.6%
Number of meetings of key boards and committees
Note: The above includes executives who retired on June 24, 2023.
Koji Hatsukawa: 90.9%; Hideo Makuta:
100%; Catherine O’Connell: 100%
Koji Hatsukawa: 88.9%; Hideo Makuta:
100%; Catherine O’Connell: 100%
Chiaki Mukai: 100%; Atsushi Abe: 100%;
Yoshiko Kojo: 100%; Byron Gill: 100%;
Kenichiro Sasae: 83.3%; Scott Callon: 83.3%
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
80
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
8. Effectiveness of the Board of Directors
Systems for ensuring the effectiveness of the Board
of Directors
In enhancing the effectiveness of the Board of Directors,
we have focused on creating a system under which non-
executive directors function efficiently. Specifically, we
believe that it is essential to establish a system that
enables independent directors and Audit & Supervisory
Board members, who maintain a certain degree of separa
tion from the execution of business activities, to consis
tently gain a deeper understanding of the Company’s
business. The Independent Directors & Auditors Council
convenes on multiple occasions each year (eight times in
fiscal 2023), and its members share information and
exchange viewpoints so that each member can formulate
their own opinions. In fiscal 2022, the members continu
ously engaged in discussions, shared information, and
exchanged views on important management matters,
including the Company’s management direction and
Group business restructuring through M&As and other
activities. Moreover, to facilitate the operation of the
Independent Directors & Auditors Council, we established
the Independent Directors & Auditors Council Support
Office in 2015. Under this system, one junior employee is
assigned to support each council member so that they
are able to acquire information through the support of
these employees without requiring the mediation of the
management execution team.
Evaluation of the effectiveness of the Board of Directors
To maintain and improve the effectiveness of the Board of
Directors, our Corporate Governance Policy stipulates that
an evaluation of the Board is to be conducted every year.
The Legal Division, which serves as the administrative
office for the Board of Directors, conducts this evaluation
after consulting with the chairperson and then compiles
and summarizes the results.
Status of corporate governance
Actions taken
in fiscal 2023
based on
fiscal 2022
evaluation
In fiscal 2023, from the viewpoint of effective oversight and discussions by the Board of Directors, the Group continued with
the following initiatives with the aim of sharing information in advance with independent directors and auditors to facilitate
the review of high-priority items at Board of Directors meetings, and to enhance substantial communication among Board
members (directors and auditors): meetings of (1) the Independent Directors & Auditors Council and (2) private sessions for
non-executive directors were held to provide them with a platform to enhance communication among themselves. Also,
briefing sessions were held during which the executive officers in charge of each business group shared the progress of ini
tiatives for business strategies and the Medium-Term Management Plan with independent external directors. In doing so, we
were able to provide information with greater clarity concerning the progress of the action plans of each business unit.
From the perspective of meeting management, we exhaustively implemented several measures necessary for enhancing
the quality of discussions on the day of Board meetings: (1) we formed a task force consisting of some Board members to stan
dardize the proposal document format, making it more concise, easy to read, and ensuring it contains the necessary information
for Board discussions; (2) we established and enforced rules for the distribution of agenda item materials in advance to ensure
that meetings run smoothly and efficiently; and (3) we compiled a glossary of in-house and technical terms with footnotes and
other annotations to be included for such terms in proposal documents. Moreover, for proposals that require elaborate discus
sions prior to a Board meeting resolution, we purposefully created separate opportunities via the Independent Directors &
Auditors Council and other meeting bodies so that information could be shared and thoroughly discussed in advance.
Fiscal 2023
evaluation
method
As in fiscal 2022 and previous years, in fiscal 2023 the members of the Board of Directors were asked to complete a ques
tionnaire by scoring certain items between one and five. This time, we improved usability by having respondents complete
the questionnaire through a survey tool, and further devised a way to efficiently perform quantitative analyses of the results
by adding questions to which respondents must either assign a score or write their own response. In addition, by interview
ing each respondent based on their responses, we were able to accurately gauge individual concerns and gather feedback
on new initiatives described above that could not be readily discerned from quantitative scores and free-form comments
alone. This approach enabled us to carry out qualitative analyses as the basis for considering meaningful action to take
going forward. The questionnaire included an evaluation of the chairperson and self-evaluations by directors and Audit &
Supervisory Board members, and also asked questions about agenda items, materials, information sharing tools, and how
Board meetings are managed. The results of the Board of Directors effectiveness evaluation were reported and discussed
at regular Board of Directors meetings. Results of an evaluation of the Board by a proxy advisory firm were also reported.
Fiscal 2023
evaluation
results
Where possible, we compared this year’s results with questionnaire responses over the past five years and made the follow
ing assessments:
• In quantitative responses, the overall average of evaluation points was higher than the previous fiscal year. In particular, we
saw increases in (1) effective monitoring of business strategy decisions and business execution, and (2) prior distribution of
agenda item materials. However, based on requests for further improvement obtained from qualitative free-form comments
and interviews, we intend to implement the following measures: (1) share the summaries of scheduled agenda items as early
as possible and reduce the volume of agenda item materials; and (2) enhance explanations about matters that are to be regu
larly monitored by the Board (through not only the provision of materials but oral updates at Board meetings), expand oppor
tunities for discussion, and provide better descriptions in agenda item materials (clarifying key points for discussion, etc.).
• Based on the quantitative and qualitative results of the evaluation, we received numerous requests from the Board mem
bers in fiscal 2023 calling for improvements in the infrastructure used to share agenda item materials. We will therefore
consider making further improvements to both the hardware and the services we use for sharing information.
• To strengthen the oversight function of the Board of Directors, we will further streamline meeting proceedings to ensure suf
ficient time for discussion of important proposals. We will also brush up descriptions in agenda item materials, ensure distribu
tion well in advance of meetings, and endeavor to elevate the quality of Board discussions by further expanding opportunities
to provide information, including via the Independent Directors & Auditors Council and business briefing sessions.
• Given the many specific opinions in evaluation results concerning matters that the Board should receive regular reports
on, as well as matters that should be exhaustively discussed from a longer-term perspective, we will investigate the set
ting and timing of meeting agendas so as to better facilitate discussion.
It is also worth mentioning that the Group’s independent external directors have assessed the discussions of the Board
to be extremely lively and substantial compared to those of other companies.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
81
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Guidelines & structure
The Fujitsu Group aims to achieve business continuity, enhanced corporate value,
and the sustainable development of corporate activities. Uncertainties that might
affect the achievement of these objectives are considered to be risks. To address
these risks, the Fujitsu Group established a Risk Management & Compliance
Committee based on the Policy on the Internal Control System determined by the
Board of Directors. The Committee reports directly to the Board of Directors and
oversees risk management and compliance for the entire Fujitsu Group.
The Risk Management & Compliance Committee is chaired by the CEO and is
composed of board members. Its primary function is to continually assess and verify
risks that could potentially lead to losses for the Fujitsu Group. The Committee pro
actively implements measures to control risks identified during the course of busi
ness operations (potential risk management). Additionally, the Committee regularly
analyzes realized risks to minimize losses, reporting them to the Board of Directors
and working to prevent their recurrence (materialized risk management).
The Risk Management & Compliance Committee has established Regional Risk
Management & Compliance Committees in each region that forms part of the global,
region-based business execution structure. These regional committees operate as sub
committees. The Risk Management & Compliance Committee has deployed Risk
Management & Compliance Officers to business units (first line), as well as to Group com
panies and regions, both in Japan and overseas. Together, these entities collaborate to
build a structure that promotes risk management and compliance throughout the Group.
To further strengthen the Group’s risk management capabilities, the Group has
established the Corporate Risk Management Office (second line), a department which
reports directly to the CEO and is independent of the business divisions. The
Committee’s secretariat function is provided by the Corporate Risk Management
Office and is supervised by the CRMO (Chief Risk Management Officer). The
Secretariat monitors overall risk information, providing rapid and appropriate
responses. In June 2023, the Group appointed a CQO (Chief Quality Officer) to ensure
prompt implementation of corporate policies and support for information security and
system quality, as well as thorough risk management under the CEO’s direction. The
CQO convenes a monthly meeting of the Risk Management & Compliance Committee
to ensure the swift and effective implementation of corporate policies.
To check that the risk management and compliance system is functioning prop
erly, the Group conducts annual audits by corporate auditors, internal audits by audit
departments (third line), and external audits by an auditing firm.
Positioning of the Risk Management & Compliance Committee in the internal control system
Risk management & compliance structure
Risk management
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
82
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Risk management process
Potential risk management process
Identification and review of important risks of the Fujitsu Group
The Risk Management & Compliance Committee Secretariat (Corporate Risk Management
Office, second line) identifies and reviews the 16 important risks considered important to the
Group, taking into account environmental changes affecting the Group. Risk scenarios are
defined for each important risk, and they are classified into pure risk and management risk.
Appointment of risk management departments (second line)
A risk management department is assigned to each important risk, and is responsible for
maintaining control over that specific risk.
Evaluation of risks to the Fujitsu Group
Risk management departments, business units, and Group companies evaluate the impact of
each important risk, the likelihood of its occurrence, and the status of mitigation measures.
We select the risks that must be actively taken to achieve the Group’s business strategies
and goals, and those that must be actively avoided.
Ranking and mapping of important risks
Based on the evaluation results of the Group, we rank important risks and create risk maps
to visualize their importance. High-priority risks are determined based on their importance.
Risk Management & Compliance Committee Report
Analyses are conducted based on the evaluation findings, and mitigation policies are dis
cussed and determined to address important risks to the Group.
Issuing of corrective instructions to business units and Group companies
Based on the evaluation results, feedback is provided to business units and Group com
panies, advising them on improvements.
Risk monitoring within business units and Group companies
Regular risk monitoring is implemented within business units and Group companies to
assess the status of mitigation measures and reduce risk exposure.
High priority risks
Considering the findings from evaluations conducted in the potential risk manage
ment process and the status of materialized risks, we have chosen to focus on high
priority risks based on their impact on achieving the Group’s business strategies and
goals. Consequently, we have identified the following two important risks as high
priority for fiscal 2023 and fiscal 2024:
Security risks
Deficiencies or flaws in products and services
Please refer to risk management for detailed information on important risks of
the Group.
Security risks
Risks of natural disasters and unforeseen
incidents
Compliance risks
Financial risks
Intellectual property risks
Risks related to environment and climate
change
Risks related to suppliers, alliances, etc.
Customer risks
Risks related to competitors and industries
Deficiencies or flaws in products and
services
Risks related to public regulations, public
policy, and tax matters
Risks related to human resources
Human rights risks
Risks related to economic and financial
market trends
Risks related to investment decisions and
business restructuring
Risks related to the Fujitsu Group facilities
and systems
Important risks of the Group
Risk management
Risk management process
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
83
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Product and service quality
Our quality management structure
The Fujitsu Group appointed a CQO (Chief Quality Officer) in June 2023 in an effort
to enhance the quality of our products/services across the entire Group.
Furthermore, Fujitsu established Quality Management Representatives (QMRs) in each
business group and Group company to govern Groupwide quality management under
the leadership of the CQO. Following the decision and direction of the CQO, the Global
Quality Management and Assurance Unit formulates common policies, standardization,
and quality improvement mea
sures as the headquarters of
quality. By deploying these
common measures through
QMRs, with close collaboration,
we strive toward more field-ori
ented implementation and qual
ity management in an effort to
provide products/services with
consistent and optimal quality
for our customers.
Quality governance
Under the CQO, we are working to strengthen quality governance across the Fujitsu
Group as well as prevent major incidents from reoccurring and enhancing the quality
of products/services.
The process of strengthening quality governance involves rolling out a common
platform to assess quality risk and the quality assurance process that supports ser
vice delivery within the Fujitsu Group to correctly assess risks and take thorough
action against it.
As the number of challenges in new areas of business increases and information
systems become more complex, we use these mechanisms as a base to make swift
and appropriate decisions and prepare for a variety of risks.
Strengthening the design and operation platform supporting quality governance
and risk monitoring
We will consolidate quality-related infor
mation that we obtain in the develop
ment field, such as progress of
development projects, test density, and
defect detection rate, onto our common
platform, the Fujitsu Developers Platform.
By combining this information with
earned value management (EVM) and
quality indicators and conducting timely
analysis, we will build a mechanism for assessing the quality and delivery decisions in
the development field in a more objective manner.
Quality assurance process that supports service delivery
To provide customers with higher value than ever before and ensure stable system
operation, we are moving to the “One Delivery” project structure—a new type of
service delivery that is not organization-dependent. One Delivery manages projects
in accordance with the shared “One Delivery Quality Assurance Process” to enable
centralized risk management.
The One Delivery Quality Assurance Process embodies four key steps based on
past quality issue trends. First, resource management aims to prevent skills mismatch
and similar problems. Next, the GOGI approval system determines the promotion of
business opportunities and projects from
an objective and multifaceted perspec
tive. Technology control then aims to
improve technological appropriateness
and feasibility. Finally, through business
opportunity and quality monitoring, we
detect at an early stage those projects
with potential troubles.
We are working to apply and improve
the One Delivery Quality Assurance Process,
enabling the entire Group to provide
higher-quality, more stable services.
For more details, see quality initiatives
Our quality management structure
Mechanism for objectively assessing
field decisions
One Delivery Quality Assurance Process
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
84
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Information security
Information security management structure
Policy
The Group has appointed a dedicated CISO (Chief Information Security Officer) to
strengthen its information security management regime, including development of
globally consistent security policies and measures to ensure the information security
of the entire Group, as well as to ensure and improve information security for cus
tomers through its products and services.
Management structure
With the rapid increase in more complex and sophisticated cyberattacks, strength
ening information security has become a top priority for national economic security
and for corporate business activities. In order to further strengthen and ensure the
effectiveness of our information security policies, we believe is it necessary more
than ever to take prompt and appropriate actions under the leadership of senior
management. Therefore, we have enhanced the structure and functions of the Risk
Management & Compliance Committee, chaired by the CEO, where critical risks and
compliance issues in the Group are discussed, to enable continuous, Groupwide
cybersecurity controls.
In parallel with the security controls by the Risk Management & Compliance
Committee, monthly regular meeting on quality and security measures have been
established as a venues for discussing countermeasures involving the CEO, CISO,
CRMO (Chief Risk Management Officer), CQO (Chief Quality Officer), and the heads
of business groups to share the status of information security and strengthen mea
sures according to the given status, thereby ensuring CEO-led risk management.
The CISO governance structure includes regional CISOs in Japan and three inter
national regions (the Americas, Asia Pacific, and Europe) to strengthen information
security through a globally integrated structure by aligning headquarters policies
with the security requirement specific to each country. For Fujitsu and Group com
panies in Japan and international regions, information security managers have been
assigned to strengthen autonomous information security in each organization, and a
governance structure has been established to reinforce the leadership by the CISO.
Specifically, our security manager system ensures that each department has an
Information Manager, who oversees the management and protection of information;
a System Security Manager, who supervises the maintenance and management of
the information security system; and a Product Security Incident Response Team
(PSIRT) Manager, who leads product vulnerability management, so that they can
promote various information security measures in cooperation with the CISO.
Our goals for information security
Our goal is to achieve information security to provide secure services to our custom
ers through appropriate risk control by planning/executing proactive security strate
gies and initiatives based on security life cycle management.
To achieve this goal, we are committed to “respond to cyberattacks with ever-
evolving advanced information security,” and to “improve the awareness of each
employee and reform our organizational culture,” which are the keys to success. The
entire Group is united in the efforts to develop processes, rules, and methods to pro
mote cybersecurity practices, and to strengthen information security for the entire
Group, while ensuring a safe environment for its customers and partner companies.
Information security management system run by the CISO and information security managers
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
85
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Information security
Information security processes and rules
In order to prepare processes and rules for information security practices, we
referred to global standards, including NIST’s CSF,*1 SP 800-53,*2 SP 800-37,*3 and
ISO/IEC 27002, to formulate the Fujitsu Group Standards for Information Security
Measures and the Risk Management Framework. Information management methods
based on the Fujitsu Group Standards for Information Security Measures are applied
to each organization and information system through the execution of the series of
processes outlined in the Risk Management Framework. We strive to achieve effec
tive implementation of security measures and to realize “security by design” through
a process of continuous improvement.
*1 CSF: Cybersecurity Framework
*2 SP 800-53: NIST SP 800-53 Rev. 5 Security and Privacy Controls for Information Systems and Organizations
*3 SP 800-37: NIST SP 800-37 Rev. 2 Risk Management Framework
Autonomous risk remediation through centralized and visualized IT asset
management
To support our customers’ safe, secure, and sustainable business activities, we have
centralized and visualized the IT asset management of our global IT systems for our
customers around the world, as well as our internal IT systems. This helps us
promptly identify and mitigate any security risks throughout the Group. In addition
to the effort of strengthening risk management throughout normal operations, risk
audits are conducted by the CISO organization. The results of the audit are disclosed
and visualized for each department to be aware of their security conditions and to
encourage them to take autonomous remedial action.
Vulnerability detection and remediation
By providing vulnerability scanning process for systems (assets) directly accessible
from the Internet using IT asset management information, each department that
manages the systems can autonomously conduct periodic scanning and implement
remedial solutions triggered by vulnerability detection. Annual inspections using this
process are conducted to ensure that vulnerability remediation practices are in
place, and when high-risk vulnerabilities are detected, reliable solutions will be
implemented in a timely manner with the involvement of the CISO organization.
Information management
The Group implemented the Information Protection Management System in order to
appropriately protect third-party confidential information, including personal infor
mation, as well as our own confidential information, applying a PDCA cycle to infor
mation management. In order to clarify information assets that must be protected,
we establish suitable information management practices according to the circum
stances of our customers and business partners, and take stringent measures to pro
tect information. These measures are taken for the autonomous information
protection activities (regulations by industry, business type, etc.) conducted by each
department, while unifying the classification of information on a global scale.
In addition, along with the operation of the Information Protection Management
System, we have developed and launched a storage service that systematically
checks the status of information management (e.g., information classification, grant
ing of appropriate access rights). When deficiencies in information management are
detected, managers in each department are notified, allowing immediate remedia
tion to ensure appropriate information management conditions.
Meanwhile, Fujitsu has established a global Personal Information Protection
System to strengthen the protection of personal data. Under the leadership of the
CISO organization and the Legal Division, we work with each region and Group com
pany to comply with the local laws and regulations of each country, including the
GDPR.*4 Privacy policy is available on the public websites of each country, describing
our policy on handling personal information.
*4 GDPR: General Data Protection Regulation
For more details, see information security
Global IT asset management
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
86
Fujitsu Integrated Report 2024
Interview with the Chairperson of
the Board of Directors
Management
Status of corporate governance
Risk management
Product and service quality
Information security
Profit attributable to owners of the parent
Profit attributable to owners of the parent came to ¥254.4 bil
lion, a record high for the second consecutive year. This is pri
marily due to the impact of lower tax expenses after
recognizing deferred tax assets in connection with the restruc
turing of our corporate structure in Europe, despite the booking
of one-off losses arising from the expansion of structural
reforms centered on business in Regions (International).
Free cash flow
Cash flows from operating activities increased from the previous
fiscal year due to progress made on reducing inventories and
collecting accounts receivable, while cash flows from investing
activities increased, mainly from the acquisition of GK Software.
As a result, free cash flow declined.
Performance highlights
Fujitsu Limited and consolidated subsidiaries
On November 1, 2017, the Company sold some of its shares in Fujitsu TEN Limited to DENSO CORPORATION. Consequently, Fujitsu TEN became classified as a discontinued business and net sales (revenue) and operating profit were reclassified in fiscal 2016.
Point
1
Point
2
*1 The actual figures are shown in units of billions of yen, and the rate of
change is calculated in units of millions of yen.
(Billions of yen)
(%)
IFRS
Year-on-year
change (%)*1
Fiscal years
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2023/2022
Financial data
Revenue
¥4,753.2
¥4,739.2
¥4,132.9
¥4,098.3
¥3,952.4
¥3,857.7
¥3,589.7
¥3,586.8
¥3,713.7
¥3,756.0
1.1
Revenue outside Japan
1,879.9
1,894.2
1,461.2
1,506.8
1,435.4
1,228.5
1,172.0
1,316.9
1,423.4
1,318.4
(7.4)
Percentage of sales outside Japan (%)
39.6
40.0
35.4
36.8
36.3
31.8
32.7
36.7
38.3
35.1
Operating profit
178.6
120.6
117.4
182.4
130.2
211.4
266.3
219.2
335.6
160.2
(52.2)
Operating profit margin (%)
3.8
2.5
2.8
4.5
3.3
5.5
7.4
6.1
9.0
4.3
Profit attributable to owners of the parent
140.0
86.7
88.4
169.3
104.5
160.0
202.7
182.6
215.1
254.4
18.3
Cash flows from operating activities
¥ 280.1
¥ 253.0
¥ 250.3
¥ 200.4
¥ 99.4
¥ 347.2
¥ 307.9
¥ 248.3
¥ 220.3
¥ 309.2
40.3
Cash flows from investing activities
(200.5)
(164.3)
(145.4)
(22.5)
4.1
(114.2)
(71.5)
(59.2)
(42.8)
(157.2)
—
Free cash flow
79.6
88.7
104.8
177.8
103.5
233.0
236.3
189.0
177.5
151.9
(14.4)
Cash flows from financing activities
(17.3)
(67.7)
(98.8)
(112.4)
(136.6)
(193.1)
(219.6)
(193.6)
(313.5)
(181.4)
—
Inventories
¥ 313.8
¥ 298.8
¥ 293.1
¥ 241.6
¥ 226.0
¥ 238.0
¥ 237.0
¥ 309.8
¥ 337.0
¥ 298.8
(11.3)
Monthly inventory turnover rate (times)
1.11
1.12
1.15
1.21
1.22
1.13
1.16
0.98
0.83
0.87
Total assets
3,271.1
3,226.3
3,191.4
3,121.5
3,104.8
3,187.4
3,190.2
3,331.8
3,265.5
3,514.8
7.6
Equity attributable to owners of the parent
790.0
782.7
881.2
1,087.7
1,132.0
1,240.9
1,450.1
1,590.7
1,586.8
1,752.3
10.4
Point
1
Point
2
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
87
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data
(%)
IFRS
Year-on-year
change (%)*1
Fiscal years
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2023/2022
Financial data
Return on equity (ROE) (%)
20.6
11.0
10.6
17.2
9.4
13.5
15.1
12.0
13.5
15.2
Equity attributable to owners of the parent ratio (%)
24.2
24.3
27.6
34.8
36.5
38.9
45.5
47.7
48.6
49.9
Return on assets (ROA) (%)
4.4
2.7
2.8
5.4
3.4
5.1
6.4
5.6
6.5
7.5
Interest-bearing loans (billions of yen)
578.4
534.9
486.7
402.2
316.2
405.5
316.3
285.3
211.1
245.6
16.3
D/E ratio (times)
0.73
0.68
0.55
0.37
0.28
0.33
0.22
0.18
0.13
0.14
Net D/E ratio (times)
0.27
0.20
0.12
-0.05
-0.09
-0.04
-0.11
-0.12
-0.09
-0.06
R&D expenses (billions of yen)
202.7
179.8
170.0
158.6
134.9
123.3
113.8
105.3
109.5
123.3
12.5
Capital expenditure*2 (billions of yen)
140.6
156.0
120.6
94.0
83.5
96.4
87.5
88.9
121.0
129.7
7.2
Depreciation*2 (billions of yen)
121.2
119.8
108.6
107.0
96.9
84.5
76.0
89.5
89.6
83.3
(7.0)
Amounts per share of common stock (yen)*3
Net profit attributable to owners of the parent per share (EPS)*4
¥ 67.68
¥ 41.94
¥ 42.83
¥ 82.53
¥ 51.25
¥ 79.12
¥101.37
¥ 92.42
¥110.76
¥135.59
22.4
Dividends
8
8
9
11
15
18
20
22
24
26
8.3
Equity attributable to owners of the parent*5
381.88
378.37
429.8
528.38
558.54
619.71
728.72
809.47
842.54
952.76
13.1
ROE
ROE, calculated by dividing profit attributable to owners of the
parent by total equity attributable to owners of the parent, was
15.2%, compared with 13.5% in the previous fiscal year.
Adjusted net profit attributable to owners of the
parent per share (EPS)
Adjusted EPS was ¥125.6 for the fiscal year, up from ¥105.1 in the
previous fiscal year. The CAGR from the fiscal year ended March
31, 2023 to the fiscal year ended March 31, 2024 was 19.6%,
above the target for the fiscal year ending March 31, 2026.
*1 The actual figures are shown in units of billions of yen, and the rate of change
is calculated in units of millions of yen.
*2 Capital expenditure and depreciation do not include the effect of adopting
IFRS 16 (Leases).
*3 The Fujitsu Group conducted a 10-for-1 stock split of its common stock
effective on April 1, 2024. Per-share information has been adjusted to reflect
values after the stock split.
*4 Net profit attributable to owners of the parent ÷ Average number of shares
of common stock outstanding excluding treasury stock during the fiscal year
*5 Equity attributable to owners of the parent (Owners’ equity) ÷ Number of
shares of common stock outstanding excluding treasury stock at the end of
the fiscal year
Performance highlights
Fujitsu Limited and consolidated subsidiaries
On November 1, 2017, the Company sold some of its shares in Fujitsu TEN Limited to DENSO CORPORATION. Consequently, Fujitsu TEN became classified as a discontinued business and net sales (revenue) and operating profit were reclassified in fiscal 2016.
Point
3
Point
4
Point
3
Point
4
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
88
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data
(%)
Fiscal years
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2023/2022
year-on-year
change (%)
Non-financial data (ESG indicators)
Management indicators (non-financial indicators, excluding
greenhouse gas emissions below)
Customer NPS®*6 (year on year) (percentage points)
–
–
–
–
–
–
–
+26.2
+18.1
+7.7
Productivity per employee (operating profit per employee,
year on year) (percentage points)
–
–
–
–
–
–
–
–
–
-11
Employee engagement*7
–
–
–
–
–
63
68
67
69
69
Diversity leadership (percentage of female managers) (%)
–
–
–
–
–
–
–
–
15.0
15.8
Environmental
Greenhouse gas emissions (Scope 1) (thousand tons)*8
197
189
208
198
147
87
75
70
65
64
(1.5)
Greenhouse gas emissions (Scope 2 [Location-based])
(thousand tons)*8
700
686
1,021
939
808
715
583
530
476
451
(5.3)
Greenhouse gas emissions (Scope 2 [Market-based])
(thousand tons)*8
–
–
–
912
771
663
540
428
341
268
(21.4)
Greenhouse gas emissions (Scope 3) (thousand tons)
8,124
7,290
7,800
6,271
6,105
5,886
5,395
7,191
5,372
3,646
(32.1)
Energy usage (PJ)*9
–
–
–
–
–
–
5.88
5.57
5.09
4.88
(4.1)
Ratio of renewable energy to total electricity consumption (%)
–
–
–
–
–
–
10.1
20.7
30.0
42.9
43.0
Water usage (thousand m3)
16,600
15,830
16,870
15,540
13,830
9,910
6,770
6,890
6,150
6,090
(1)
Performance highlights
Fujitsu Limited and consolidated subsidiaries
*6 Net Promoter®, NPS®, NPS Prism®, and the images and symbols used in connection
with NPS are registered trademarks of Bain & Company, Fred Reichheld, and NICE
Systems, Inc.
*7 An average score calculated by assigning scores between 0 and 100 to each of the
five answer options of survey questions
*8 Includes emissions from Group companies that were present for only part of the
relevant fiscal year (consolidated Group data has been used from fiscal 2022)
*9 The heat conversion coefficients for electricity have been revised in the data from
fiscal 2020.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
89
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data
(%)
Fiscal years
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Non-financial data (ESG indicators)
Social
Number of employees
158,846
156,515
155,069
140,365
132,138
129,071
126,371
124,216
124,055
123,527
Outside Japan
59,491
57,610
56,622
47,889
46,791
46,839
44,946
47,371
51,414
51,478
Of which, non-consolidated
25,627
24,112
33,095
32,969
31,827
32,568
32,026
34,430
35,092
35,924
Average age of employees (non-consolidated) (years)
43.3
43.3
43.1
43.3
43.2
43.6
43.8
43.6
43.7
43.6
Average years of service (non-consolidated) (years)
20.0
20.3
20.0
20.0
19.2
19.5
19.6
19.2
19.1
18.8
Average annual salary of employees (non-consolidated) (yen)
8,107,983
8,100,102
7,970,455
7,900,199
7,985,114
8,036,835
8,651,494
8,594,757
8,789,575
9,654,460
Percentage of male workers taking childcare leave
(non-consolidated) (%)
85.1
86.2
Difference in wages between male and female workers
(non-consolidated)*10
–
–
–
–
–
–
–
–
76.9
76.8
Applicants to job-posting system
(non-consolidated and consolidated subsidiaries in Japan) (people)
–
–
–
–
–
–
4,299
7,217
7,902
7,582
Of which, number transferred
(non-consolidated and consolidated subsidiaries in Japan) (people)
–
–
–
–
–
–
1,458
2,691
3,419
2,725
Reskilling (participants in on-demand training) (people)
–
–
–
–
–
–
13,194
26,485
36,764
63,683
Governance
Percentage of independent directors (non-consolidated) (%)
36.4
40.0
40.0
40.0
40.0
55.6
55.6
55.6
55.6
55.6
Percentage of female directors (non-consolidated) (%)
16.7
20.0
20.0
20.0
20.0
22.2
22.2
22.2
22.2
22.2
Performance highlights
Fujitsu Limited and consolidated subsidiaries
*10 Indicates the ratio of female workers’ wages to male workers’ wages. There
is no difference in wages for the same work, so the gap is due to differences
in the composition of people at each job level.
Percentage of independent directors
(non-consolidated)
As of the Annual Shareholders’ Meeting convened in June 2024,
five of the Company’s nine directors approved were indepen
dent directors, who constitute a majority at meetings of the
Board of Directors. The Company is strengthening oversight and
advisory capabilities by actively appointing external directors
with a high degree of independence and diverse perspectives.
Point
5
Point
5
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
90
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data
Sustainability
Yearbook
CDP
Received the highest grade of A in “Climate
Change” and “Supplier Engagement Rating”;
certified as a “Supplier Engagement Leader
Board” company
Agreement with international norms, participation in international organizations, and external evaluations
United Nations Global
Compact (UNGC)
FTSE4Good Index Series
Selected for all six ESG stock indices adopted by the Government Pension Investment Fund (GPIF)
MSCI World ESG Leaders Index
EcoVadis Sustainability Rating
MSCI ESG Ratings
ISS ESG Corporate Rating
World Business Council for
Sustainable Development (WBCSD)
World Economic Forum (WEF)
Registered as an adopter of the
Taskforce on Nature-related
Financial Disclosures (TNFD)
Science Based Targets
initiative (SBTi)
Gold Member Participant
in Renewable Energy 100%
(RE100)
High ratings received from global ESG rating institutions, among other international bodies
Agreement with international norms and
participation in international organizations
External evaluations
For details on the Fujitsu Group’s participation in the WBCSD and
WEF, please see “Collaboration with stakeholders” on page 65
Agreement with the recommendations
of the Task Force on Climate-related
Financial Disclosures (TCFD)
The inclusion of Fujitsu Limited in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship,
endorsement or promotion of Fujitsu Limited by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names
and logos are trademarks or service marks of MSCI or its affiliates.
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
91
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data
Corporate headquarters: 4-1-1 Kamikodanaka, Nakahara-ku,
Kawasaki-shi, Kanagawa, 211-8588, Japan
Telephone: +81-44-777-1111
Transfer agent:
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan
Stock exchange listings: Tokyo, Nagoya
Accounting auditors:
Ernst & Young ShinNihon LLC
Shareholder information: For further information, please contact:
Fujitsu Limited Public & Investor Relations
Telephone: +81-3-6252-2173
Company overview / Shareholder data
(As of March 31, 2024)
March
2014
March
2015
March
2016
March
2017
March
2018
March
2019
March
2024
March
2020
March
2021
March
2022
March
2023
0
100
200
300
400
500
Total shareholder return: TSR
Source: LSEG
Notes: 1. The Fujitsu Group conducted a 10-for-1 stock split of its common stock effective on April 1, 2024. The graph shows values prior to the
stock split.
2. The graph displays the relative value of the stock price including dividends (dividends reinvested) at the end of each month, taking the
closing value at the end of the fiscal year ended March 31, 2014 as one hundred.
Capital:
¥325,638,181,205
Authorized common stock:
500,000,000 shares
Issued common stock:
207,110,845 shares
Number of shareholders:
91,389
Equity shareholdings by type of shareholder:
Status of principal shareholders:
Principal shareholders
Number of shares
held (thousands)
Percentage of
shares held (%)
The Master Trust Bank of Japan, Ltd. (for trust)
28,558
15.53
Ichigo Trust Pte. Ltd.
11,183
6.08
Custody Bank of Japan, Ltd. (for trust)
10,142
5.51
GIC PRIVATE LIMITED - C
6,703
3.64
JP MORGAN CHASE BANK 385632
5,903
3.21
SSBTC CLIENT OMNIBUS ACCOUNT
3,981
2.16
STATE STREET BANK WEST CLIENT - TREATY 505234
3,553
1.93
Asahi Mutual Life Insurance Company
3,518
1.91
STATE STREET BANK AND TRUST COMPANY 505223
3,445
1.87
Fujitsu Employee Shareholding Association
3,439
1.87
Notes: 1. The investment ratio is calculated after exclusion of treasury stock holdings (18,661,673 shares).
2. The shares held by The Master Trust Bank of Japan, Ltd. (for trust) and Custody Bank of Japan, Ltd. (for trust) pertain to
their trust business.
Fujitsu
TSE sector indices (33 categories) /
electric appliances
Japanese financial
institutions and
securities firms
2.30%
Other
Japanese
corporations
Foreign
institutions and
individuals
27.21%
58.90%
11.58%
Japanese
individuals
and others
For inquiries, please use the contact form on our investor relations website:
https://www.fujitsu.com/global/about/ir/
Fujitsu Group overview
and management policy
Management strategy
Financial strategy and
business overview
Progress and outlook in
focus areas
Reinforcing management
capital
Sustainability
management
Corporate governance
Data section
92
Fujitsu Integrated Report 2024
Performance highlights
Agreement with international norms, participation in
international organizations, and external evaluations
Company overview / Shareholder data