Fujitsu Ltd. (FJTSF) 2023年年度報告「OTC」.pdf

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1、FujitsuIntegratedReport 2023Note:Consolidated revenue estimate using calendar year,based on IDCs services market definitionSource:IDC Japan,Japan IT Services Shares,2022:Acceleration of Digital Business due to Normalization of Economic Activities,#JPJ49210423,July 2023(Billions of US dollars)Global

2、services revenue(Billions of yen)Japan IT services revenueNotes:1.Revenue estimate using calendar year,based on IDCs services market definition.US dollar basis2.Ranking by vendors revenue in 2022Source:IDC Japan,IDC Worldwide Semiannual Services Tracker 2022H2 Historical Release Publication Date:Mar

3、ch 16,2023Global business operationsRevenue by region(Fiscal 2022)3,713.7 billionConsolidated number of employees124,055 people(As of March 31,2023)Japan61.7%Others0.2%Europe17.9%Americas8.0%Asia Pacific7.6%East Asia4.6%Japan72Europe22Americas4Asia Pacific20East Asia5Fujitsus position in the IT serv

4、ices marketThe Fujitsu Group has operations in different regions around the world,including Japan,and provides digital services globally.Fujitsus IT services business ranks top by market share in Japan and is in the top tier worldwide,a record that reflects our out-standing technologies and long tra

5、ck record in building large-scale,cutting-edge systems.6040200AccentureIBMTCSDeloitteFujitsu25.925.917.417.441.541.514.214.218.418.41,5001,0005000FujitsuNTT DataHitachiNECIBM1,038.71,038.7983.8983.8947.6947.61,203.21,203.2468.6468.6Notes:Europe:the United Kingdom,Finland,Sweden,Denmark,Norway,Spain,

6、Portugal,France,Belgium,Luxembourg,the Netherlands,Germany,Austria,Switzerland,and Poland Americas:the United States,Canada,etc.Asia Pacific:Singapore and other southeast Asian countries and Oceania East Asia:China,Taiwan,and South KoreaOthers:the Middle East and AfricaAbout Fujitsu(Thousands of peo

7、ple)001Fujitsu Integrated Report 2023Fujitsu Integrated Report 2023Reinforcing management capitalCorporate governanceReview of operationsCompany informationFujitsu Group overview and management policyManagement strategyBusiness strategyAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation mo

8、delMaterialityVisionBusiness portfolioMessage from the CEOForward-looking statementsThis Integrated Report may contain forward-looking statements that are based on managements current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results,performa

9、nce,or events to differ materially from those expressed or implied in such statements.Actual results may differ materially from those projected or implied in the forward-look-ing statements due to,without limitation,the following factors:general economic and market conditions in key markets(particul

10、arly in Japan,Europe,North America,and Asia,including China);rapid changes in the high-technology market(particu-larly semiconductors,PCs,mobile phones,etc.);fluctuations in exchange rates or interest rates;fluctuations in capital markets;intensifying price competition;changes in market positioning

11、due to competition in R&D;changes in the environ-ment for the procurement of parts and components;changes in competitive rela-tionships relating to collaborations,alliances,and technical provisions;potential emergence of unprofitable projects;and changes in accounting policies.001 Fujitsu Group over

12、view and management policy001 About Fujitsu003 Our Purpose004 The Fujitsu Way005 Value creation model006 Materiality008 Vision009 Business portfolio010 Message from the CEO016 Management strategy017 Trajectory of change018 20202022 Medium-Term Management Plan:Review of financial indicators019 202020

13、22 Medium-Term Management Plan:Review of non-financial indicators020 20232025 Medium-Term Management Plan:Overview of the plan021 20232025 Medium-Term Management Plan:Financial and non-financial indicators022 20232025 Medium-Term Management Plan:Key strategies024 Interview with the COO026 Message fr

14、om the CFO029 Revision of segments030 Approach to Materiality033 Business strategy034 Business model and portfolio strategy:Fujitsu Uvance037 Business model and portfolio strategy:Delivery039 Technology strategy:Five Key Technologies041 Technology strategy:Intellectual property management042 Custome

15、r success/regional strategy:Customer success044 Customer success/regional strategy:Regions(Japan)046 Customer success/regional strategy:Regions(International)047 System quality and information security048 Reinforcing management capital049 Message from the CHRO(Chief Human Resource Officer)051 Overal

16、l human resource strategy052 The human resource management trajectory053 Major human resource management initiatives and progress054 Employee opinions055 Message from the CDXO(Chief Digital Transformation Officer),CIO(Chief Information Officer)056 Fujitsu Groups DX057 Message from the CSuO(Chief Sus

17、tainability Officer)058 Overview of our sustainability management059 Overview of GRB progress062 Human Rights063 Supply Chain064 Compliance065 The Environment067 TCFD-based information disclosure071 Collaboration with stakeholders072 Corporate governance073 Interview with the Chairman of the Board o

18、f Directors075 Management078 Status of corporate governance089 Risk management091 Economic security initiatives092 Information security094 Review of operations094 Performance highlights097 Highlights by segment099 Technology Solutions highlights by international region101 Company information101 Agre

19、ement with international norms,participation in international organizations,and external evaluations102 Editorial policy/Disclosure system103 Company overview/Shareholder dataFujitsu Integrated Report 2023002Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing

20、management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOContentsOur PurposeOur Purpose Make the world more sustainable by building trust in society through i

21、nnovation.Fujitsu Integrated Report 2023003Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusi

22、ness portfolioMessage from the CEOCode of ConductMaking theworld moresustainableBuilding trustin societyInnovationOur ValuesOur PurposeAspirationEmpathy TrustValue toSocietyValue toSocietyThe Fujitsu WayFujitsu promotes the“Fujitsu Way,”the principle for the behavior of its people centered on Our Pu

23、rpose,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 th

24、e cycle of actions necessary to achieve Our Purpose:To make the world more sustainable by building trust in society through innovation.Our PurposeOur 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 regu

25、lations.We act with fairness in our business dealings.We protect and respect intel-lectual property.We maintain confidentiality.We do not use our position in our organization for personal gain.Our ValuesAspirationTrustEmpathy Set ambitious targets and act with agility.Embrace diversity and create or

26、iginal 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.S

27、trive 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 ConductFujitsu Integrated Report 2023004Fujitsu Group

28、overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOFujitsus business activ

29、itiesPeoplestrategy PeopleBusinessTechnologyCustomersKey strategiesGRB(Global Responsible Business)TechnologystrategyBusiness model and portfolio strategyCustomer success/regional strategyOutput Fiscal 2030Fujitsus MaterialityEssential contribution Input Fiscal 2022 resultsOur Purpose is to make the

30、 world more sustainable by building trust in society through innovation.Financial capital Total assets 3.3 trillion Free cash flow 177.5 billion Growth investment 131.0 billion Human capital Number of employees 124,000 people Ratio of female employees 24%Ratio of female managers 15%Natural capital E

31、nergy consumption 13 million GJTechnology and intellectual capital R&D investment 109.5 billion Internal DX investment 50.0 billionSocial and relationship capital Community activity-related expenditures 2.47 billionSolving global environmental issuesDeveloping a digital societyImproving peoples well

32、-being TechnologyManagement foundationHuman capitalVision for 2030:Being a technology company that realizes net positive through digital services Contribute to reduced global GHG emissions 0.3%(Global CO2 reduction impact in Service Solutions)Use of renewable energy in Fujitsu 100 Digital accessibil

33、ity 150 million people Number of people receiving ICT skills training 12 million people+Employee engagement 75+Diverse leadership(e.g.ratio of female managers)30%+Non-financialindicatorsOutcome Providing value to society StakeholdersSolving global environmental issuesDeveloping a digital societyImpr

34、oving peoples well-beingFoundation for achieving sustainable developmentFinancial indicators Growth area revenue(Fujitsu Uvance)1 trillion+Operating profit margin(Service Solutions)17%+EPS CAGR(Fiscal 20232030)17%+PlanetProsperityPeopleCustomers,shareholders,employees,partners,society,and the next g

35、enerationCommunitySupply ChainComplianceEnvironmentWell-beingHuman Rightsand DE&IValue creation model Fujitsu Integrated Report 2023005Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informa

36、tionAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOMaterialityThe Fujitsu Group conducted evaluations from the perspectives of itself and its stake-holders,and identified Materiality,which incorporates the perspective of deli

37、vering value to customers and society through business activities.Looking ahead to 2030,we have identified three areas for the Fujitsu Groups essential contributions(Materiality),Planet(solving global environmental issues),Prosperity(developing a digital society),and People(improving peoples well-be

38、ing).To achieve our goals in these three areas,we will strengthen our technology,management 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 survey

39、s 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 identificatio

40、n of social issuesList social issues based on the SDGs and other refer-ences,and narrow them down based on relevance to the business.PrioritizationAssessment by internal and external stakeholders to create a Materiality matrix.Management approvalMateriality is included in the Medium-Term Management

41、Plan,and is then discussed and approved by the Board of Directors.ReviewReview and discuss annually based on changes in the internal and external environment.Materiality assessment processStep 2Step 3Step 4Step 1Fujitsu Integrated Report 2023006Fujitsu Group overview and management policyManagement

42、strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOEssential areas for contributionMaterialityIssueRisk*Opportunity

43、*Planet(Solving global environmental issues)Climate change(Carbon neutral)Higher costs of coping with more stringent energy savings and GHG emissions regulations.Higher operating costs due to frequent natural disasters Increase in demand for visualization of GHG emissions,wider introduction of energ

44、y conservation and renewable energy,and creation of disaster-resilient communitiesResource circulation(Circular economy)Increased costs for operations and for handling resource constraints and escalating conflicts over scarce resources Increased demand for building recycling mechanisms and promoting

45、 zero waste and the effective use of resourcesLiving in harmony with nature(Protection and restoration of biodiversity)Amid stricter controls on land use and information disclosure,there is increased reputational risk due to delays in addressing biodiversity Increased demand for assessing the impact

46、 on the environment and for urban development in harmony with natureProsperity(Developing a digital society)Maintaining security of information Risk of loss of social trust and violations of laws and regulations due to leakage of personal information or customer information related to business activ

47、ities Increased demand for more advanced information infrastructure that is trusted and secure Eliminating the digital divide Greater adoption of“digital democratization”leading to increased demand for digital platforms that do not encourage discrimination,prejudice,or hateLeading ethical AI and IT

48、Diminished social trust due to ethical issues and lack of understanding and practical experience of AI ethics could risk thwarting the progress,of AI Increased demand for appropriate AI use and appropriate AI ethics practicesEnsuring a positive work environment and addressing labor shortages Increas

49、ed demand for the creation of pleasant,safe,and secure working environments,and for expanded automation and efficiency so as to improve pro-ductivity and quality and to address labor shortagesAssuring responsible supply chains Risk of erosion of social trust and difficulties in continuing business a

50、ctivities due to human rights violations or environmental destruction in the supply chain Increased demand for visualization and optimization of supply chain management in environmental and social areasPeople(Improving peoples well-being)Contributing to healthcare for an improved quality of life Inc

51、reased demand in communities for healthcare that is integrated into daily life,such as the digitalization of medicine and preventive healthcare that uses AI and the IoTPromoting lifelong education and reskilling Increased demand for initiatives that allow people to live rich and fulfilling lives,suc

52、h as the building of digital education platforms that enable people to learn freely at any time and to have their achievements evaluated appropriatelyImproving customer/consumer experience Improvements in peoples attitudes toward new consumption,new relationships,and new workstyles as their values b

53、ecome more diverse;greater demand for personalized consumer experiences and the creation of new ways to exchange personal,corporate,and social valuesFoundation for achieving sustainable developmentMaterialityIssueRisk*TechnologyCreating and developing cutting-edge innovative technologies R&D into cu

54、tting-edge technology is the wellspring of corporate growth.If technology development does not progress,there is a risk of losing competitiveness;digital innovation that supports DX/SX is essential for business transformation and a sustainable societyManagement foundationGovernance and compliance If

55、 a strong governance structure is not maintained,and disclosure and oversight of execution are not enhanced,there is a risk of undermining sound man-agement;situations that violate laws or regulations can put the company at risk of exposure to surcharges or financial compensation,and erode public tr

56、ustRisk management The absence of a strong risk management can have an impact on the companys business continuityEconomic security management Given the trend toward stronger regulation for maintaining economic security,there are impacts on supply chains and target markets,together with increased bur

57、dens such as the costs of responding to such impacts and financial penalties for regulatory breachesDigital transformation(DX)Failure to achieve DX can lead to declines in productivity and delayed responses to the external environment,which can adversely affect competitivenessHuman capitalDE&I Human

58、 rights violations and insufficient consideration of diversity in employees or people in the supply chain poses a wide range of risks,including erosion of social trust and loss of personnelWell-being and human resource development Failure to create an environment that enables employees to be happy a

59、nd healthy in their work,or failure to provide opportunities for employees to achieve personal growth,can lead to risks of losing personnel and eroding the brand value*Risks and opportunities here are organized and analyzed based on various publicly available information in Step 1(Organization and i

60、dentification of social issues)of the Materiality assessment process.In Step 1 of the Materiality assessment process(organization and identification of social issues),we considered the respective risks and opportunities for each Materiality issue based on a range of information in the public domain.

61、Fujitsu will implement measures to address risks,focusing on our internal initiatives,while addressing opportunities by expanding Fujitsu Uvance and other businesses to solve social issues and provide value to customers and society.MaterialityFujitsu Integrated Report 2023007Fujitsu Group overview a

62、nd management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOSolving Global Environmental Issu

63、esPlanetDeveloping a Digital SocietyProsperityImproving Peoples Well-beingPeopleVisionBeing a technology company that realizes net positive through digital servicesWe have shared this vision throughout the Group,with the goal of achieving Our Purpose by having a positive impact on society overall th

64、rough technology and innovation.In addition to creating financial value,we will also work together with our stakeholders to provide positive value to society,addressing the Planet as we work to resolve global environmental problems,Prosperity by developing a digital society,and People by improving t

65、heir well-being.Toward a sustainable futureFujitsu Integrated Report 2023008Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue cr

66、eation modelMaterialityVisionBusiness portfolioMessage from the CEO4,0003,0002,0001,0001,0000202240030020010010002022Business portfolioSegmentSubsegmentMain products and services Service Solutions Global Solutions Consulting services(Business consulting and technology consulting)Cloud services(IaaS,

67、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 opera

68、tions 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 networ

69、k 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 SolutionsPCs Device SolutionsElectronic components(Semiconductor packages,batteries,etc.)Inter

70、segment Elimination/CorporateR&D,elimination of intersegment sales,etc.(Billions of yen)Revenue(Billions of yen)Operating profit Ubiquitous Solutions Device Solutions Intersegment Elimination/Corporate Hardware Solutions Device Solutions Hardware Solutions Service Solutions (Global Solutions)Service

71、 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(Fiscal years)(Fiscal ye

72、ars)Fujitsu Integrated Report 2023009Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness p

73、ortfolioMessage from the CEOWorking to realize net positive in 2030The Fujitsu Groups Purpose is“to make the world more sustainable by building trust in society through innova-tion.”In May 2023,we clarified the three essential areas of contribution for achieving Our Purpose as solving global environ

74、mental issues,developing a digital soci-ety,and improving peoples well-being.We have also established our value creation concept looking ahead to 2030 as a vision of“being a technology company that realizes net positive through digital services.”The expression“net positive”incorporates our deter-min

75、ation to create positive outputs that exceed the negative outputs generated by our business activities.One example is supercomputers.Increasing computing power involves increasing electricity consumption but,on the other hand,exponential advances in computing power can also be used to generate innov

76、ations that contribute to reducing greenhouse gas(GHG)emissions.By driving technology and innovation through our business,we aim to create positive impacts on our customers and our society in the future.Message from the CEOTakahito TokitaRepresentative DirectorCEOWe will realize business portfolio t

77、ransformation and growth through the provision of solutions that contribute to“solving global environmental issues,”“developing a digital society,”and “improving peoples well-being.”010Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinf

78、orcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOinitiatives on the non-financial front.We did not hit our target for employee engagement,but w

79、e did improve our score,and I feel that the Group has undergone a major transformation in its systems and organizational culture,including the transition to job-based human resource management in Japan.I have to thank our employees for this,as they correctly understood the objective of the transform

80、ation and actively engaged in making changes amid the turmoil of the COVID-19 pandemic.*1 Net Promoter and NPS Prism are registered trademarks of Bain&Company,Inc.,Satmetrix Systems,Inc.,and Fred Reichheld,and Net Promoter SystemSM and Net Promoter ScoreSM are service marks of Bain&Company,Inc.,Satm

81、etrix Systems,Inc.,and Fred Reichheld.Formulation of new Materiality as a response to stakeholdersWe have identified three areas for the Fujitsu Groups essential contributions(Materiality ):solving global environmental issues,developing a digital society,and improving peoples well-being.We chose 202

82、3 as the time to identify our Materiality because we wanted to review our business management since the renewal of the Fujitsu Way based on Our Purpose in 2020,and to closely examine what kind of value we ourselves should provide to society,as well as what our customers expect from us.In identifying

83、 our Materiality,we were careful to avoid complacency.We sought feedback from a wide range of stakeholders,centered on customers,employ-ees,and shareholders,then had deep discussions based on the results to determine which of the various social issues are in areas inherently suitable for the Fujitsu

84、 Group to address.Personally I feel great confidence not only in the Materiality that we identified through these discussions,but also in the fact that our discussion pro-cess had the approval of our outside directors and Audit&Supervisory Board members.I think that realizing net positive by 2030 ex

85、presses the Fujitsu Groups commitment to creating value and,at the same time,it is the Groups response to the stake-holders who helped to identify our Materiality.Our Values under the Fujitsu Way are Aspiration,Trust,and Empathy.It is highly significant that Empathy is the basis on which we set our

86、targets and goals.This has rein-forced my resolve to continue leading the Group as CEO while engaging sincerely with stakeholders.Review of the 20202022 medium-term plan (the previous medium-term plan)To realize Fujitsus ideal state in 2030,we have announced the milestones we wish to achieve for fis

87、cal 2025 and the accompanying strategies in our new 20232025 Medium-Term Management Plan(medium-term plan).Before I talk about these,I would like to report on our progress up to the end of fiscal 2022 and the issues we still need to address.In our consolidated financial results for fiscal 2022,opera

88、ting profit reached a record high and the operating profit margin reached 9.0%.However,in the Technology Solutions segment,both revenue and operating profit margin fell short of the financial targets of the previous medium-term plan.External factors such as semiconductor shortages and foreign exchan

89、ge fluctuations certainly had an impact on revenues and costs.However,these impacts could have been mitigated if we had swiftly promoted data-driven management and precisely executed demand prediction and inventory management.Another issue was that the plan envisaged growth in hardware products,whic

90、h are more susceptible to supply chain risks than services are.These issues have been reflected in the new medium-term plan,which I will discuss later.On the other hand,we are proud to have successfully launched Fujitsu Uvance as a solution to drive the Groups medium-to long-term growth.Furthermore,

91、among our non-financial targets ,we achieved our targets for Customer Net Promoter Score(NPS)*1 and digital transformation(DX)promotion as a result of our I have to thank our employees for this,as they correctly understood the objective of the transformation and actively engaged in making changes am

92、id the turmoil of the COVID-19 pandemic.Message from the CEO Fujitsu Integrated Report 2023011Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe F

93、ujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOClarification of growth areas through changes to business segmentsAs part of our business model and portfolio strategy,we decided to make some changes to our business seg-ments from fiscal 2023,by separating the pre

94、vious Technology Solutions segment into the Service Solutions segment and the Hardware Solutions seg-ment.The Service Solutions segment comprises global solutions and the services business that is delivered in each region(Japan and International).The purpose of the segment changes is to enable a mor

95、e rigorous execution of the management approach that matches our growth strategies and organizational structure to the segment classification for disclosing information.Clearly distinguishing our Service Solutions segment based on our growth-leading Fujitsu Uvance initiatives from our other business

96、es will enable us to better present our actual growth potential to our stake-holders.This is the answer that we came up with after reflecting on our previous medium-term plan,where our results in growth areas had become difficult to demar-cate because the impacts of hardware supply shortages were al

97、so incorporated in the Technology Solutions segment that included service and solution businesses.Message from the CEO Clearly distinguishing our Service Solutions segment based on our growth-leading Fujitsu Uvance initiatives from our other businesses will enable us to better present our actual gro

98、wth potential to our stakeholders.Pursuing growth through four key strategiesUnder our new medium-term plan,we are aiming for growth directed toward achieving Fujitsus ideal state in 2030 and maximizing our net positive outcome.To achieve these goals,we are promoting three themes:transform the busin

99、ess model and portfolio,ensure reli-able support for customer modernization,and improve the profitability of our international businesses.Moreover,to promote these themes,we have formulated four key strategies :a business model and portfolio strategy,a customer success/regional strategy,a technology

100、 strat-egy,and a people strategy.By executing these strate-gies,we intend to achieve financial and non-financial targets for fiscal 2025 as follows:our financial targets are revenue of 4.2 trillion,adjusted operating profit*2 of 500.0 billion,adjusted operating profit margin of 12%,core free cash fl

101、ow*3 of 300.0 billion,and earnings per share(EPS)with a compound annual growth rate(CAGR)of 14%16%.Our non-financial targets are to reduce GHG emissions and improve on four indicators,namely Customer NPS,per capita productivity,employee Engagement,and the ratio of female managers.*2 An indicator tha

102、t represents actual profit from the core business calculated by deducting profits from business restructuring,M&A,etc.,and one-off profits from changes in regulations from operating profit.(Previously presented as operating profit excluding special items.)*3 Current FCF after deducting temporary inc

103、ome and expenses associated with business restructuring,M&A,etc.Fujitsu Integrated Report 2023012Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeTh

104、e Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOspace that exists between customers,and at the border between businesses.We have designed Fujitsu Uvance as a cross-industry initiative so that it can create business opportunities in exactly this white space.Som

105、e social issues,such as supply chain optimization and achieving carbon neutrality,cannot be resolved by the businesses of individual companies.By providing services that help to attain the resolution of such issues,we will realize a completely new level of growth and the transformation of our busine

106、ss portfolio toward 2030.Capturing the business opportunities that exist in the white space requires proposals based on a profound understanding of customer needs and issues.We will Focus on growth of Fujitsu Uvances Vertical areasUnder our new medium-term plan,we will accelerate growth and increase

107、 profitability centered on Service Solutions.The main driver for this is Fujitsu Uvance ,which is comprised of seven Key Focus Areas.Four of these are cross-industry Vertical areas that provide solu-tions for social issues,and three are Horizontal areas that support them as a technology foundation.B

108、y the start of fiscal 2023,we were on track to have offerings in all seven Key Focus Areas.Over the next three years,we will refine our offerings,particularly in the four Vertical areas,working to create high added value,while at the same time investing in bolstering our consulting capabilities,deve

109、loping strategic alliances,strengthening our tech-nology foundation,and developing and reskilling human resources.In this way,we will establish a path for medium-to long-term growth.The three defining characteristics of Fujitsu Uvance are that it starts with societal issues,takes a cross-industry ap

110、proach,and includes digital services deployed on the cloud.For example,we have a strong share of the electronic medical record market for hospitals in Japan.The current services are mainly standalone systems that are complete within each individual hospital.As a Fujitsu Uvance solution,our offering

111、will be used for coopera-tion between hospitals,and in regional healthcare and local government services,as well as in drug discovery and in creating value across business types and industries.Until now,the Fujitsu Groups business has operated on the basis of resolving individual customers issues.It

112、 is this experience that enables us to see a significant white Message from the CEO therefore enhance our consulting capabilities for resolv-ing customer issues under the customer success strategy of the new medium-term plan.Specifically,we will increase the number of personnel with consulting skill

113、s from 2,000 at the end of fiscal 2022 to 10,000 by fiscal 2025,combining both technology consultation and business consultation.Modernization with a missionWhile on-cloud services centered on Fujitsu Uvance will lead our growth,we will also focus on services that sup-port our customers utilization

114、of their IT assets.The mainstay of this activity is modernization,which mainly refers to shifting customers unique on-premises IT assets to the cloud.The Fujitsu Group has decided to terminate sales and maintenance services of mainframe computers and UNIX servers,which are used by many customers in

115、Japan.While we will continue to provide full support services so that customers can use these systems with confidence over the period until maintenance services are terminated,we also consider it our mission to pro-mote modernization to support customers sustainable management.Over the three years u

116、ntil fiscal 2025,we will strengthen our delivery structure and make fur-ther progress on productivity,which was improved under the previous medium-term plan,and meet the demand for modernization,which we expect to peak in 2026,with a fully prepared structure.By providing services that help to attain

117、 the resolution of such issues,we will realize a completely new level of growth and the transformation of our business portfolio toward 2030.Fujitsu Integrated Report 2023013Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate govern

118、anceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOStrengthening profitability with globally competitive offeringsIn our regional strategy ,in Regions(Japan)we have set an ambitious targ

119、et for fiscal 2025 of an adjusted operating profit margin of 19%,and we will promote Fujitsu Uvance and modernization.In other regions,where our adjusted operating profit margin was at the low level of 1%in fiscal 2022,we will work to improve profitability by expanding our provision of global offeri

120、ngs centered on Fujitsu Uvance.In regions outside of Japan ,we promoted a shift to the service business during the previous medium-term plan and in the Americas,in particular,we succeeded with major structural reforms.Furthermore,perfor-mance of Fujitsu Uvance in fiscal 2022 demonstrates how a globa

121、l offering can be a catalyst for break-through growth.Among the seven Key Focus Areas,the one that recorded the highest revenue was one of the Horizontal areas,Digital Shifts,which is the area of the digital workplace.This involved providing the technolo-gies and expertise employed by the Group in p

122、romoting its internal“Work Life Shift”transformation to external customers,where the overseas market in particular proved to be a notable growth driver.To catch up with the pace of growth of the overall Fujitsu Group,we will provide Fujitsu Uvance to regions outside of Japan as well,focusing particu

123、larly on the provision of offerings in Vertical areas,and accelerating our growth in stages.In light of the recent occurrence of information secu-rity incidents and system quality issues,we are working across the Group to step up our security and quality management structure .As part of this,we will

124、 strengthen the functions of the Risk Management&Compliance Committee,of which I am the chair,and bolster our information security countermeasures under the guidance of our CISO(Chief Information Security Officer),whose authority has been increased.In addi-tion,we will work on improving system quali

125、ty and preventing recurrences under the newly appointed CQO(Chief Quality Officer).Five Key Technologies and practical knowledge as the source for providing added valueWe have identified five technology domains as the Key Technologies that support Fujitsu Uvance,and have concentrated our research an

126、d development resources in them under our technology strategy .One of these domains is AI,which has achieved amazing advances in recent years,and is now spreading rapidly in the form of corporate and consumer services.We welcome such flourishing of technology because it encourages people to proactiv

127、ely use cutting-edge technologies,actively accept new transformative technologies and try them out.The Fujitsu Group has developed in-house technolo-gies that support AI,in which we have over 30 years of accumulated research,as well as world-leading comput-ing power,and technologies such as high-pre

128、cision sim-ulations,networks that also support large-scale social infrastructure,and cybersecurity.We also hold intellec-tual property ,including patents,for these technolo-gies.I think there are only a few companies in the world that can boast the same breadth of technological capabilities essentia

129、l for providing digital services.Message from the CEO I think there are only a few companies in the world that can boast the same breadth of technological capabilities essential for providing digital services.In addition,we have accumulated practical knowl-edge about how to convert these technologie

130、s into value.For example,under the OneFujitsu Program ,we have introduced business applications that we pro-vide through Fujitsu Uvance within the Group while pro-moting operational reforms in our business.We use the lessons and knowledge gained from this as a reference model when providing services

131、 to customers.The capa-bilities that we have obtained through technological development and implementing our own transformation are the competitive advantage of the Fujitsu Group.Fujitsu Integrated Report 2023014Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforc

132、ing management capitalCorporate governanceReview of operationsCompany informationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOTakahito Tokita Representative DirectorCEOHuman resource portfolio transformation linked to busin

133、ess strategyTo accelerate our business portfolio transformation and produce results,it is essential to have a robust manage-ment foundation that enables the utilization of human capital and data.Under our people strategy ,we will continue to transform our human resource portfolio and to advance data

134、-driven management.Human capital management ,in particular,is one of the areas that I am focusing my energy on.As CEO of the huge team that is the Fujitsu Group,I believe that my role is to lead without leaving anybody on the team behind.Through a series of human resource manage-ment improvements th

135、at we initiated during the previ-ous medium-term plan,employees mindsets are changing at the individual level,as well as at the level of organization culture,and this is showing in the results of the employee engagement survey.I feel a great sense of achievement that we are able to foster job satisf

136、ac-tion among our employees,even without the“member-ship”style human resource system traditionally used in Japanese companies.We will work to enhance our management foundation in terms of human resources and IT so that we can demonstrate successful models of human capital management and data-driven

137、management.Being a partner that can support sustainability transformationAmid calls for the construction of a new economic system predicated on the sustainability of global soci-ety,including carbon neutrality,companies seeking to achieve sustainable growth will need to undergo not only a digital tr

138、ansformation but also a sustainability transfor-mation so that they can create value in new and different ways.After completing the new medium-term plan in fiscal 2025,I see the Fujitsu Group working to encourage many customers to undertake a sustainability transfor-mation,using Fujitsu Uvance as a

139、starting point.As a technology company,it is our mission and our responsi-bility to provide our customers with powerful support as they participate actively in the building of a new economic system,and embark on their sustainability transformations with a determination and readiness to take on the c

140、hallenge of creating value.We are firmly resolved to achieve our financial and non-financial targets through the four key strategies of the medium-term plan,and to show the world that we are a company that will“make the world more sustain-able by building trust in society through innovation.”We hope

141、 that you will share in our expectations for Fujitsus future endeavors.Message from the CEO As a technology company,it is our mission and our responsibility to provide our customers with powerful support as they participate actively in the building of a new economic system,and embark on their sustai

142、nability transformations with a determination and readiness to take on the challenge of creating value.Fujitsu Integrated Report 2023015Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany inform

143、ationAbout FujitsuContentsOur PurposeThe Fujitsu WayValue creation modelMaterialityVisionBusiness portfolioMessage from the CEOThe Fujitsu Group has positioned the three years from fiscal 2023 as a time to build a model for growth and improved profitability,with the aim of realizing its 2030 vision

144、and creating sustainable value thereafter through backcasting.We will pro-mote the four key strategies under our 20232025 Medium-Term Management Plan and concentrate resources on growth areas centered on Fujitsu Uvance.As a result,we will help to resolve the man-agement and social challenges our cus

145、tomers face,and also enhance our own corporate value.Management strategy016Fujitsu Integrated Report 20231,0002,0003,0004,0005,0006,0000060120180240300360(Fiscal years)200220142013201220112010200920082007200620052004200320222021202020192018201720162015Over the 88 years since its founding,the Fujitsu

146、 Group has used innovative technologies to solve issues faced by customers and society,and to provide new value,growing in step with the development of society.With the ever-changing social conditions and the evolution of digital technology,the business environment is undergoing tremendous change.To

147、 ensure the Groups sustainable growth in this situation,we are transforming our business model by shifting its central focus from products to solutions and services,and are concentrating our management resources in this area.In the last 20 years,we have spun off or sold several businesses,including

148、the semiconductor,mobile handset,and consumer PC businesses.Net sales have fallen from their historical peak,but by focusing on growth areas and efficiency gains,operating profit has advanced,and prof-itability is climbing steadily.Using the enhanced cash-generating ability produced by our reforms t

149、o date,we are making strategic growth investments in pursuit of sustainable growth and an increase in corporate value.The reforms have been well received by the market and our share price has risen around 2.2 times over the past five years.Net sales(JGAAP)(left scale)Net sales(IFRS)(left scale)Opera

150、ting profit(JGAAP)(right scale)Operating profit(IFRS)(right scale)100200300400600700500March2003March2008March2013March2018March2023JGAAPIFRSTrajectory of change Transfer of car navigation system business and mobile handset business Transfer of PC business Transfer of plasma display and LCD business

151、 Transfer of hard disk drive business(Billions of yen)(Billions of yen)Share prices Sale of semiconductor plant Transfer of scanner businessNotes:1.On October 2018,Fujitsu consolidated every 10 shares of stock into one share.The figures in the graph are calculated based on the number of shares after

152、 the stock consolidation.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 31,2003,as one hundred.FujitsuTSE sector indices(33 categories)electric appliances017Fujitsu Integrated Report 2023Fujitsu G

153、roup overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevisi

154、on of segmentsApproach to Materiality4.34.36.06.06.56.56.36.37.97.93,212.73,212.73,284.33,284.33,087.73,087.73,056.33,056.33,176.53,176.54,0003,0002,0001,0000201510502018*2019202020212022(Fiscal years)5125127917911,0131,0139249241,1071,1071,200900600300020182019202020212022(Fiscal years)(Fiscal year

155、s)104.5104.59.49.413.513.515.115.112.012.013.513.5160.0160.0202.7202.7182.6182.6215.1215.140030020010002015105020182019202020212022In the core Technology Solutions segment,the Fujitsu Group is targeting an operating profit margin of 10%.By comparison,in fiscal 2022,revenue excluding special items wa

156、s 3,176.5 billion and operating profit was 249.9 billion,for an operating profit margin of 7.9%.Unable to shake off the external environmental impacts during the previous Medium-Term Management Plan period,such as COVID-19 and a deterioration in demand and supply due to supply chain disruptions,the

157、segment did not reach its targets.Nevertheless,business profitability improved steadily,and the seg-ment achieved a record-high operating profit in fiscal 2022.This was mainly attributable to the effects of higher revenues due to DX-related demand,such as digitalization and modernization,cou-pled wi

158、th productivity gains and profitability improvements,such as global system development and standardization of operations.To emphasize capital efficiency improvements,we targeted a CAGR of 12%for Companywide EPS.In fiscal 2019,EPS was 791.20,rising to 1,013.78 in fiscal 2020.In fiscal 2021,EPS fell t

159、o 924.21,partly due to recording expenses of approximately 65.0 billion in relation to human resource measures undertaken to accelerate the transformation into a DX company as part of business restructuring.In fiscal 2022,EPS rose to 1,107.63 with the expansion of the profit base.By optimizing the a

160、llocation of our increased cash flow between uses such as business growth investments and share repurchases,we achieved a CAGR of 12%,in line with the plan.Compared with fiscal 2018,EPS has grown by around 2.2 times.ROE,calculated by dividing profit attributable to owners of the parent by equity ach

161、ieved to owners of the parent(owners equity),was 15.1%in fiscal 2020,12.0%in fiscal 2021,and 13.5%in fiscal 2022.The decline in fiscal 2021 was in line with a decrease in profit due to one-time losses related to business restructuring and business transfers.However,with the con-stant improvement in

162、business profitability,and the strengthen-ing of shareholder returns through the expansion of share repurchases and steady dividend increases,capital efficiency improved in fiscal 2022 and is maintaining a consistent level.Medium-term management plan:Financial indicators(Billions of yen)(%)Revenue a

163、nd operating profit margin (Technology Solutions)(Yen)Net profit attributable to owners of the parent per share(EPS)(Billions of yen)(%)Profit attributable to owners of the parent and ROE20202022 Medium-Term Management Plan:Review of financial indicatorsPrevious medium-term planPrevious medium-term

164、planPrevious medium-term plan Profit attributable to owners of the parent(left scale)ROE(right scale)CAGR 12%(20192022)*Figures for fiscal 2018 are approximations calculated from segments disclosed at the time.Revenue(left scale)Operating profit margin(right scale)018Fujitsu Integrated Report 2023Fu

165、jitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CF

166、ORevision of segmentsApproach to Materiality636368686767696902550751002019202020212022(Fiscal years)1.91.92.42.43.23.23.563.56432102019202020212022(Fiscal years)Customer NPS is a metric that enables objective evaluation of customer loyalty,i.e.,the customers level of trust and attach-ment toward a c

167、ompany.Customer loyalty is characterized by the ability to determine the degree of customer attachment and the likelihood of repeat purchases;therefore,the Fujitsu Group employs Customer NPS as one of its non-financial indicators with the aim of realizing customer-centric management.In fiscal 2022,t

168、he Group recorded a significant jump in its Customer NPS evaluation result compared with the target,because it was rec-ognized for providing proposals based on a deep understanding of the customers business challenges,for its experience in offering digital transformation projects,and for the initiat

169、ives undertaken in its own transformation.At the same time,for the future,we acknowledge the need to focus on consultancy sup-port relevant to our customers business challenges and on exe-cution capabilities to advance transformation for our customers.The Fujitsu Groups greatest management resource

170、is its employees,who are the source of the value it provides to cus-tomers.We believe that increasing the engagement of each and every employee leads to the growth of both the individual and the Group.Based on this belief,we have set employee engagement,which demonstrates empathy for Our Purpose and

171、 organizational culture,as well as enthusiasm for work,as an indicator to measure the sustainable growth of the Group.Based on the employee engagement survey results of each organization and team,the senior and middle management of the organizations work together with team members to promote their o

172、wn initiatives to increase engagement.DX Promotion Indices measure the progress of management transformation beyond surface-level utilization of digital tech-nology.In fiscal 2022,we achieved an average score of 3.56 on the indices against a target of 3.5.According to the DX Promotion Indices standa

173、rd set by the Japanese Ministry of Economy,Trade and Industry,this score places the Group among the leading DX companies in Japan.We conducted a DX promotion maturity diagnosis based on a common global format to enable a quantitative grasp of our own transforma-tion toward achieving Our Purpose,ther

174、eby firmly embedding a transformative mindset throughout the Group.We will also utilize the results of these efforts in our business activities,such as providing customers with practical insights gleaned from our initiatives based on the DX Promotion Indices.20202022 Medium-Term Management Plan:Revi

175、ew of non-financial indicators+2.3 points+18.1 pointsFiscal 2021(Reference)Fiscal 2022Customer Net Promoter ScoreSM(NPS)(Scores)Employee engagement(Points)DX Promotion IndicesPrevious medium-term planPrevious medium-term planMedium-term management plan:Non-financial indicators019Fujitsu Integrated R

176、eport 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage

177、 from the CFORevision of segmentsApproach to Materiality20232025 Medium-Term Management Plan:Overview of the planThe objective of the Fujitsu Groups new Medium-Term Management Plan(new medium-term plan),starting in fiscal 2023,is to establish a business model for sustain-able growth and improved pro

178、fitability that will position us to achieve our vision for 2030 and beyond.The plan has three themes: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 have set four key strate

179、gies to secure the suc-cessful promotion of these three themes.The business model and portfolio strategy is based on the growth of the service domain,centered on the Fujitsu Uvance business.Through the customer success/regional strat-egy,we will establish greater support structures for global custom

180、ers with Japan-originated businesses,expand our consulting capability,build a structure to support customer modernization,significantly improve profitability in Regions(International),and further evolve our strategic alliance partnerships.The technol-ogy strategy is based on developing five core tec

181、hnolo-gies,including and centered on AI,and utilize them to improve value to our stakeholders,including to society.Our people strategy includes globally unifying standard roles and developing our workforce portfolio aligned to our business growth needs.Additionally,we continue improving productivity

182、 and strengthening our management foundation across the business.We will diligently execute these four key strategies to maximize the value we provide to stakeholders and achieve continued sustainable growth.During this three-year medium-term plan period,we will establish a business model for sustai

183、nable growth and improved profitability for 2025,through to 2030 and beyondMedium-term plan(Fiscal 2023 to 2025)Previous medium-term plan(Fiscal 2020 to 2022)Business model and portfolio strategyBusiness segments and portfolioShift to growth areasCustomer engagement modelTechnology strategyDevelop c

184、ore technologiesBusiness utilization of technologies (enhance value delivered)TechnologyPeopleCustomersBusinessCustomer success/regional strategyExpand consultingModernizationInternational focus on servicesStrategic alliancesFurther stability of customers businessPeople strategyGlobally unified role

185、sImprove productivity(per employee)Strengthen management foundationAiming for 2030 and beyond Transform our business model and portfolio Ensure reliable support for customer modernization Improve the profitability of our international businessDigital societyGlobal environmentWell-being20192022 20232

186、025 20262030Key strategiesStrategic issues020Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan

187、20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to Materiality20232025 Medium-Term Management Plan:Financial and non-financial indicatorsEnvironmentGHG emissionsFujitsu GroupScope 1 and 250%reduction(Compared with fiscal 2020)Supply chainSco

188、pe 3*12.5%reduction(Compared with fiscal 2020)*Category 11:CO2 emissions due to product power consumption onlyCustomersCustomer NPS+20(Compared with fiscal 2022)ProductivityPer capita productivity(operating income)+40%(Compared with fiscal 2022)PeopleOur financial targets for fiscal 2025,the final y

189、ear of this medium-term plan,are revenue of 4.2 trillion,adjusted operating profit of 500.0 billion,and an adjusted operating profit margin of 12%.Centering on Service Solutions,we aim to boost profitability,driven by growth from Fujitsu Uvance.Furthermore,by improving working capital efficiency to

190、strengthen our cash flow generation capabilities,by fiscal 2025 we aim to expand core free cash flow(FCF)to 300.0 billion,around twice the fiscal 2022 level.Also,by this date,we intend to achieve a compound annual growth rate(CAGR)in earnings per share(EPS)of between 14%and 16%by optimally allocatin

191、g the increased cash flow.We will progressively implement our financial strategy to achieve sustainable improvements in corporate value.To measure and substantiate our materiality contribution to customers and society,and augment our foundation for sustainable growth,we have set non-financial key pe

192、rfor-mance indicators(KPIs)for fiscal 2023 to fiscal 2025 in four areas:the environment,cus-tomers,productivity,and people.We also have initiatives underway targeted to achieve these goals.We are continuing to improve Customer NPS and employee engagement,which were management targets under our previ

193、ous medium-term plan.In addition,we have added greenhouse gas(GHG)emissions as an indicator for the environment,oper-ating profit per employee as a productivity measure,and percentage of female manag-ers globally as one of our diversity indicators.We further conduct quantitative analysis to understa

194、nd how these non-financial initiatives contribute to our financial performance and enhance our corporate value.Financial indicatorsNon-financial indicators(Fiscal 2022)69(Fiscal 2022)15%Fiscal 2022Fiscal 2025Business growth and improved profitabilityRevenue3.7 trillion4.2 trillionService Solutions2.

195、0 trillion2.4 trillionFujitsu Uvance revenue200 billion700 billionAdjusted operating profit*1320 billion500 billionService Solutions160 billion360 billionAdjusted operating profit margin9%12%Service Solutions8%15%Strengthen cash generation capabilitiesCore FCF*2(Companywide)150 billion300 billionFis

196、cal 2019 fiscal 2022Fiscal 2022 fiscal 2025Increase efficiency of corporate capitalEPS CAGR12%1416%*1 An indicator that represents actual profit from the core business calculated by deducting profits from business restructuring,M&A,etc.,and one-off profits from changes in regulations from operating

197、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&A,etc.7520%Employee engagementDiverse leadership(e.g.,ratio of female managers)021Fujitsu Integrate

198、d Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMess

199、age from the CFORevision of segmentsApproach to MaterialityBusiness model and portfolio strategy20232025 Medium-Term Management Plan:Key strategiesCustomer success/regional strategy Business segment changesFrom fiscal 2023,we have separated Technology Solutions into Service Solutions and Hardware So

200、lutions.This change improves business portfolio management with clear visibility of growth areas and results from investments.Grow Service SolutionsIn Service Solutions,a growth area,we will expand highly profitable on-cloud digital services centered on Fujitsu Uvance.We will drive modernizationwork

201、ing with our customers to mod-ernize their business and improve productivity,shifting traditional on-premises services to being cloud-based.Develop long-term customer engagementWe will work with customers to jointly address challenges,continuously provide optimal solu-tions at each stage of their bu

202、siness model,and provide long-term support for modernization with a shift to the cloud.Grow Service Solutions Expand consultingWe will increase the number of employees with consulting skills(technical and business)to 10,000,which will be achieved through a number of activities including reskilling.R

203、ealize customers optimal modernizationWe will help customers optimize their assets and achieve digital and sustainability transforma-tions(DX/SX)by utilizing our long-standing engineering capabilities,establishing dedicated specialized modernization teams,and leveraging our global delivery system.In

204、ternational focus on servicesWe will grow the ratio of service revenue from Fujitsu Uvance in the international business from 20%in fiscal 2022 to 45%in fiscal 2025.Further develop strategic alliancesWe will cultivate and expand strategic partner alliance relationships to enhance the level of value

205、we bring to our global stakeholders.Further stabilizing our customers businessesInformation security and system quality are of utmost importance in earning societys trust,and core to Our Purpose.We will implement further measures to strengthen our management structure and approaches,measure effectiv

206、eness,and drive continued improvements.Shift to the cloudRevenue 2 trillionAdjusted operating profit margin 8%On-cloud digital services that contribute to our customers business transformation,centered on Fujitsu UvanceOn-premises core services that ensure a safe and secure environment for customers

207、2.4 trillion15%Fiscal 2022Fiscal 2025CustomersBusinessFurther stabilizing our customers businessesFurther develop strategic alliancesRealize customers optimal modernizationInternational focus on servicesExpand consulting022Fujitsu Integrated Report 2023Fujitsu Group overview and management policyMan

208、agement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityE

209、xplainable AICausal discoveryImage recognition AILearning-type multi-agent simulationMulti-agent reinforcement learningTechnology strategyPeople strategy20232025 Medium-Term Management Plan:Key strategies Enhance value through technologyFujitsu Uvance leverages five Key Technologies:Computing,Networ

210、k,AI,Data&Security,and Converging Technologies.We are concentrating research and development in these areas,and by accelerating our standing in these five technologies,centered on AI,we will continue to create added value in our business.Business utilization of technologies(enhance value delivered)W

211、e are increasing our efforts to transform how our technical innovations bring enhanced added value for customers and society.By applying our core technologies to applications and services in Fujitsu Uvances Vertical domain,we will work with and offer our customers integrated solutions that propel th

212、e adoption of technology in society.Business-aligned workforce portfolioWe will create a business-aligned workplace portfolio and promote employee development programs across the Company.We will define and unify job roles globally and expand our talent pool in growth areas through reskilling and ups

213、killing.Increase value to customers by strengthening our management foundationWe will continue driving existing initiatives under the previous medium-term plan to upgrade and strengthen our management foundation and increase productivity.We will leverage from,share,and apply valuable experience and

214、expertise from these initiatives in improved human capital management and data-driven management(for example,OneFujitsu)to aid our customers with their transformations,which will also help promote DX across society.AIOneFujitsuOneERP+OneCRMOnePeopleOneLicenseOneSupportOneDataPeopleExperienceKnowledg

215、eInsightSkill Real-time management Integrated data insights and visualization Standardized global business operationsConverging TechnologiesHigh-precision simulationData&SecurityAutonomous and decentralized social systemsNetworkControl large-scale networksComputingProvide massive speed with low powe

216、r consumption Mechanism for individual-focused employee growth Corporate culture that generates sustainable resultsHuman capital managementData-driven managementTechnologyPeople023Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcin

217、g management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityInterview with the COOWe asked the COO about

218、 the key points of the regional strategy,which aims to transform the business foundation in Regions(International),and the assumptions underlying the growth scenario for Fujitsu Uvance,all in line with reaching the goals set in the medium-term plan.Q What will be the biggest challenges to meeting th

219、e goals outlined in the medium-term plan?A The key to achieving our financial goals lies in our business model and portfolio strategy,with a focus on the growth of Fujitsu Uvance and transfor-mation of service delivery.However,one of the biggest challenges will be the execution of the business model

220、 and portfolio strategy ,particularly the regional strat-egy ,and especially in Regions(International).To date,Regions(International)has relied on man-aged infrastructure services(MISs)for its revenue base,which involve the monitoring,operation,and mainte-nance of IT systems such as servers and netw

221、orks.Meanwhile,the Fujitsu Group has positioned the expan-sion of digital services,centered on Fujitsu Uvance,as its management strategy.Accordingly,the medium-term plan sets forth a regional strategy of accelerating the shift toward a focus on service businesses known as business application servic

222、es(BASs),replacing MISs.MIS business faces intense competition outside Japan,and it is difficult to differentiate ourselves from Indian vendors,which are highly cost-competitive.This situa-tion is not new,and the transition from MISs to BASs in Regions(International)has been a strategic issue for th

223、e Fujitsu Group over the past 10 years.Our regional strategy under the medium-term plan reflects our determination to move out of this untenable situation.Q How do you plan to address long-standing issues that have not been resolved?What will you change,compared to the past?A As our reference model,

224、let us look at the busi-ness portfolio transformation in the Americas.In this region,MISs were previously the core business.However,in fiscal 2020,we implemented a business portfolio transformation focused on service operations,by withdrawing from product-based businesses cen-tered on hardware sales

225、,equipment for the retail indus-try,hosting,and maintenance services.As a result,we became profitable in fiscal 2021.Partly because the scale of business in the Americas was small,we conducted a detailed analysis into the fundamental reasons why the MIS-to-BAS transition was not progressing as well

226、as expected,and then identified our necessary actions.We will build on our experience in this region of executing a series of transformations such as withdrawing from the product business,concen-trating resources on major strategic clients,and stan-dardizing delivery,to accelerate the shift from MIS

227、 to BAS in Europe and Asia Pacific.The changes we have made in the past were to the level of control and support our headquarters business groups provided to the regions.In fiscal 2022,we con-solidated each regions solution development functions within the Global Business Solutions Group.From the pe

228、rspective of Regions(International),it is essential to collaborate with the business groups to provide solutions to customers.In fiscal 2023,we will enhance this Hidenori FurutaRepresentative Director COO024Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategy

229、Business strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityQ With its offeri

230、ngs in Vertical areas finally complete in fiscal 2023,will Fujitsu Uvance be able to gain customer acceptance and drive growth?A The Fujitsu Uvance growth scenario incorpo-rates the concept of an ecosystem,which pro-motes relationship-building with customers through business.We believe that once one

231、 company recognizes the value of Fujitsu Uvances offerings,we can then extend our customer base to include that companys business partners.Let me give a concrete example.The Fujitsu Group and Teijin Limited,a major chemical firm that manufac-tures industrial products including high-performance fiber

232、s,composites,and electronic materials,have jointly developed a platform to collect and trace environmen-tal impact information of recycled materials throughout the value chain.Approximately six months after the projects initiation,two German bicycle manufacturers decided to participate in the pilot

233、project for this plat-form.Their aim is to achieve traceability and create value by managing and reducing greenhouse gas emissions from their business operations.As this case demonstrates,initiatives such as reduc-ing environmental impact cannot be accomplished by single companies acting alone.Thus,

234、there are signifi-cant benefits to expanding the ecosystem,both for cus-tomers and for their business partners.By creating use cases of our services in fiscal 2023 and leveraging them in multiple business negotiations in and beyond fiscal 2024,we are confident that we can expand Fujitsu Uvances cust

235、omer base.Q What is the current status of your efforts to earn customers trust,which is a prerequisite for business growth?A First and foremost,we would like to deeply apologize to all those who were affected by our system quality issues and information security incidents.Following a major system fa

236、ilure in fiscal 2021,the Fujitsu Group reevaluated its IT governance framework and implemented measures to identify and address vul-nerabilities via a thorough inspection of mission-critical systems.Additionally,we worked to strengthen global information security measures.However,while institut-ing

237、these measures,further information security inci-dents and system quality issues occurred,which showed that we had not yet been able to sufficiently foresee and prepare for possible risks.In fiscal 2023,we appointed a CQO(Chief Quality Officer)in addition to the existing CISO(Chief Information Secur

238、ity Officer).Our goal is to establish a more agile decision-making process and ensure swift responses.The Group is actively working on specific improvement measures to enhance system quality and information security management,with the aim of regaining customer trust.collaboration further and optimi

239、ze resource allocation.Additionally,we are introducing a mechanism whereby small teams from the business groups will be dispatched to each region to address specific regional needs and to coordinate support from the business groups.Q As effects of restructuring,dont the financial targets for Regions

240、(International)under the medium-term plan seem too low?A Even using the Americas as a reference model,we anticipate that it will take some time to carry out restructuring measures in Europe,which has a business scale approximately 10 times that of the Americas on a revenue basis,and Asia Pacific,whi

241、ch has a business scale approximately three times that of the Americas.Our assumption is that we will first proceed with restructuring and then aim for growth by providing high-value-added Service Solutions.With this in mind,we have set a target operating profit margin of 3.3%for the Regions(Interna

242、tional)segment in fiscal 2025.In Europe,some progress was achieved in fiscal 2022 by expanding sales of Fujitsu Uvance in Horizontal areas,particularly in Hybrid IT,Business Applications,and Digital Shifts.However,upon closer examination,we dis-covered that many of the projects had low profitability

243、 due to insufficient differentiation from other companies services.In addition to the transition from MISs to BASs,we aim to find ways to maximize the added value of Fujitsu Uvances offerings during the period of the medium-term plan.For example,we will restructure customer support systems and reski

244、ll personnel to meet the needs of growth areas.Interview with the COO 025Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022

245、 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to Materiality211.4211.4266.3266.3219.2219.2335.6335.65.55.57.47.46.16.19.09.0020010030040050002.04.06.08.010.02019130.2130.23.33.33,857.73,857.73,589.73,589.73,586.

246、83,586.83,713.73,713.73,952.43,952.42018202020212022(Fiscal years)Operating profit(left scale)Operating profit margin(right scale)Message from the CFOWe will grow Service Solutions and realize a sustainable increase in corporate value through the expansion of our cash generation capabilities and opt

247、imal capital allocation.Takeshi IsobeDirector and Corporate Executive OfficerSEVP,CFOFiscal 2022 performance and medium-term plan financial targetsLooking at our consolidated financial results for fiscal 2022,revenue increased by 3.5%from the previous year to 3,713.7 billion,operating profit increas

248、ed by 53.1%to 335.6 billion,and the operating profit margin was 9.0%.Operating profit reached a new record high,and improvements in profitability helped earnings per share(EPS)to rise steadily with a compound annual growth rate(CAGR)of 12%over the three-year period of the previous medium-term plan.T

249、hese results are the suc-cessful culmination of a range of initiatives for improv-ing profitability,and we see them as evidence that the direction of our management policy was correct.In areas other than performance figures,we have been internally promoting KPI management to achieve profit targets a

250、t a high level,and I think that we have thoroughly inculcated an awareness of the need to stringently examine investments with regard to profits and the timeline thereof,particularly among our man-agement leaders.By expanding our cash generation capabilities backed by profit growth and reliable man-

251、agement,and by optimally allocating that cash to busi-ness growth investments and shareholder returns,we will accomplish a sustainable increase in the Groups corporate value.I believe that this consistent manage-ment direction in our previous medium-term plan for fiscal 2020 to fiscal 2022 has set u

252、s on the right path.However,there are also some results of the previous medium-term plan that we should reflect upon.During the plan period,the business environment changed dramati-cally.The main factors driving this change included the spread of COVID-19 in the first year,fiscal 2020,followed in fi

253、scal 2021 and onward by a global delay in supplies of elec-tronic components,the emergence of geopolitical risks around the world,and significant foreign exchange fluctua-tions.While it would be extremely difficult to foresee such changes in the business environment,we did not respond to them quickl

254、y enough,and we strongly recognize the need for greater flexibility and speed.In particular,since the overseas business has a relatively weak earnings base,our inability to respond rapidly to changes in the external environment had a noticeable impact,with revenue and operating profit margin both re

255、maining at a standstill.RevenuePrevious medium-term plan:Operating profit(Billions of yen)(%)Previous medium-term plan026Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operation

256、sCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to Materiality150.0150.080.080.030.030.0360.0360.00100200300400162.9162.920222025(Fiscal years)500.0500.0225.2225.232

257、0.8320.812.0%12.0%5.8%5.8%8.6%8.6%201920222025020040060080003.06.09.012.0(Fiscal years)Cash flow and capital allocation performanceWe realized an increase in cash flow generation capabil-ities with base cash flow,*1 which is the source of cash allocation,totaling 652.8 billion over the three years f

258、rom fiscal 2020 to fiscal 2022,an increase of over 50%from the preceding three-year period.Of the 652.8 billion cash that we generated,a total of 256.0 billion was invested over the three-year period in the growth of our most important businesses.We conducted investments for value creation,such as d

259、eveloping Fujitsu Uvance offerings,reforming service delivery to improve profitability,reskilling human resources,and creating new businesses.In addition,we made a powerful effort in internal DX ,such as the OneFujitsu Program,as an investment for our own trans-formation.We also introduced and expan

260、ded Work Life Shift(WLS),to transform human resource management and systemize upgrades of our employee working environment and systems.Our cash flow generation ability expanded faster than we initially planned,and we expect it to continue accelerating.In light of this situation,we also enhanced our

261、shareholder returns significantly.The cumulative total amount of shareholder returns in the form of divi-dends and share repurchases for the three-year period came to 347.3 billion.*1 Free cash flow before growth investments plus lease obligation payments.20232025 medium-term plan financial targets

262、and pathway to achievementThe new medium-term plan has set targets for fiscal 2025 of revenue of 4.2 trillion,adjusted operating profit*2 of 500.0 billion,adjusted operating profit margin of 12.0%,core free cash flow(FCF)*3 of 300.0 billion,and a CAGR of 14%16%for EPS.Compared to our results for fis

263、cal 2022,this represents a 1.5 times increase in adjusted operating profit and an approxi-mately two times increase in FCF.These targets were formulated by describing the Groups ideal position in 2030 and backcasting from there.We look forward to making a leap ahead from the previous medium-term pla

264、n period in revenue,adjusted operating profit margin,core FCF,and EPS.*2 An indicator that represents actual profit from the core business calculated by deducting profits from business restructuring,M&A,etc.,and one-off profits from changes in regulations from operating profit.(Previously presented

265、as operating profit excluding special items.)*3 Current FCF after deducting temporary income and expenses associated with business restructuring,M&A,etc.To reach the ambitious target of adjusted operating profit of 500.0 billion,we must achieve two major objectives.The first is expanding revenue,in

266、particular strong growth of digital services centered on Fujitsu Uvance,which has a fiscal 2025 revenue target of 700.0 billion.In Vertical areas,we will launch cross-industry offerings that will help to resolve social issues,while in Horizontal areas,we will capture soaring cus-tomer demand for bus

267、iness applications such as SAP Message from the CFO(Billions of yen)(Billions of yen)(%):(Billions of yen)Revenue expansionGrowth investmentsBusiness growth investmentsShareholder returnsExpand shareholder returns early due to continuous expan-sion of cash flow Adjusted operating profit(left scale)A

268、djusted operating profit margin(right scale)Improvements in profitability and cost efficiencyNew medium-term plan:Breakdown of changes in adjusted operating income(Service Solutions)Adjusted operating profit:Actual and planPrevious medium-term plan:Cash flow and capital allocationProgress(three-year

269、 period fiscal 20202022)256.0347.3Three-year cumulative base cash flow652.8027Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change202

270、02022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to Materiality50.150.143.343.3150.0150.046.146.1050100150200202120.120.139.939.920202022202320252024(Fiscal years)and will deploy DX platforms that can support

271、Vertical areas.Using these offerings as a primer,we will achieve revenue expansion by supporting the modernization progress of customers and society.The second is expanding profitability and driving even deeper with our delivery transformation .During the previous medium-term plan period,we progress

272、ed with system development and service standardization,namely standardization of operating processes and con-tent through expanded utilization of the Japan Global Gateway(JGG)and Global Delivery Centers(GDCs).These promoted steady productivity improvements and the strengthening of service quality,wh

273、ich led to an improvement of our gross profit margin.There is still plenty of room to continue developing these initiatives even further.For example,our GDC utilization rate was only 11%in fiscal 2022,so we expect the real improve-ments in productivity are actually yet to come.By accelerating standa

274、rdization,automation,and GDC utili-zation,while reskilling and upskilling delivery personnel,we plan to improve the gross profit margin by one percentage point per year through to fiscal 2025.Capital allocation:Significant increase in both business growth investment and shareholder returnsBase cash

275、flow is the source of capital allocation.During the course of the new medium-term plan,we expect to be able to increase base cash flow to 1.3 trillion,approx-imately double that of the previous medium-term plan.Of this,we plan to allocate 700.0 billion to business growth investments and 600.0 billio

276、n to shareholder returns,representing a significant increase to both.With regard to business growth investments,we plan to concentrate investments in Service Solutions,which is a growth area among our business segments,through the promotion of four key strategies outlined in the new medium-term plan

277、.We will pursue growth through development investments for expanding offerings in the Vertical areas of Fujitsu Uvance,and technology investments that will help to strengthen consulting capabilities to deliver those offerings to customers and strengthen the competitive advantages of Fujitsu Uvance.I

278、n addition,we will also promote investments that contribute to the OneFujitsu Program for realizing data-driven management and to human resource portfolio transformation.While the new medium-term plan financial targets may appear challenging,they are on the pathway to the Groups sustainable growth,a

279、nd they show our thinking that there is still room for further growth toward 2030 and beyond.To achieve these ambitious targets,we will align the directions of our management team and employees,and work together to realize a sustainable increase in corporate value for the Fujitsu Group.(Billions of

280、yen)DividendsShare buybacks(Average approximately 200 billion/year)Capital allocation during the new medium-term planMessage from the CFO 350600Growth investments:700 billionShareholder returns:600 billionShareholder returnsBusiness model and portfolio strategy Business portfolio management Inorgani

281、c growth Strengthen the management foundation(OneFujitsu Program)Customer success/regional strategy Develop and acquire consulting capabilities Improve quality and securityTechnology strategy Five Key Technologies Technology implementation and commercializationPeople strategy Develop,reskill,and acq

282、uire talent650 billionBase cash flow20232025 medium-term plan20202022 actual results2.0 timesOptimal allocation of base cash flowThree-year cumulative amount:1.3 trillion(including cash from asset recycling)028Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strat

283、egyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityRevision of se

284、gmentsThe Fujitsu Group has made some changes to its seg-ments in fiscal 2023.We did so to more clearly demon-strate our progress toward the achievement of our medium-term goals and to more closely reflect the perspective of the management approach that aligns the current organizational structure wi

285、th the segment classification for which information is disclosed.Specifically,we divided the Technology Solutions segment into the Service Solutions segment and the Hardware Solutions segment.We also established three Service Solutions subsegments.Items included in a pre-vious subsegment,Technology

286、Solutions(Common)and items eliminated in intersegment sales will be included in Intersegment Elimination/Corporate.We will transform our business portfolio with a view to sustainable value creation by focusing our resources,such as investments and talent,on the growth area of Service Solutions.This

287、segment will provide global services and solutions,centered on Fujitsu Uvance.Key changes to segmentsFujitsu has eliminated the Technology Solutions segment,created two new segments,and changed the Intersegment Elimination/Corporate segment.1.Establishment of the Service Solutions segmentThe hardwar

288、e sales and hardware maintenance services were separated from the subsegments Solutions/Services and International Regions Excluding Japan,included in Technology Solutions,and the name has been changed to Service Solutions.The following three subsegments have been newly established:Global Solutions:

289、Creating and providing global value services centered on Fujitsu Uvance Regions(Japan):Provision of services to the Japanese market(including implementation of Fujitsu Uvance)Regions(International):Provision of services in regions outside of Japan(including implementation of Fujitsu Uvance)2.Establi

290、shment of the Hardware Solutions segmentThe subsegment System Platforms has been consolidated with hardware sales and hardware maintenance services into a new segment,Hardware Solutions.3.Changes in Intersegment Elimination/CorporateIntersegment Elimination/Corporate refers to the following items in

291、cluded in the previous subsegment Technology Solutions(Common):advanced R&D conducted by the Fujitsu Research Unit and other Groupwide organizations that do not belong to any of the segments;investment in common business growth,includ-ing in-house DX investment on a global group basis;sale and dis-p

292、osal of common assets;and elimination of Intersegment sales.Major subsidiaries in each segment Service Solutions(excluding sales of Hardware and Ubiquitous products)Fujitsu Japan Limited,Fujitsu FSAS,Inc.,Fujitsu Research Institute,Ridgelinez Limited,Transtron Inc.Fujitsu Services Holdings PLC,Fujit

293、su North America,Inc.,Fujitsu Australia Limited,Fujitsu Technology Solutions(Holding)B.V.,Fujitsu Asia Pte.Ltd.,etc.Hardware Solutions(excluding manufacturing and sales of Ubiquitous products)Fujitsu Frontech Limited,Fujitsu IT Products Ltd.,Fujitsu Telecom Networks LimitedFujitsu Isotec LimitedFuji

294、tsu Network Communications,Inc.,etc.Ubiquitous SolutionsFujitsu Personal System Limited,etc.Device SolutionsShinko Electric Industries Co.,Ltd.,FDK Corporation,etc.Intersegment EliminationIntersegment Elimination/CorporatePrevious segmentsNew segmentsTechnology SolutionsService SolutionsSolutions/Se

295、rvicesGlobal SolutionsInternational Regions Excluding JapanRegionsJapanSystem PlatformsInternationalCommonHardware SolutionsUbiquitous SolutionsUbiquitous SolutionsDevice SolutionsDevice SolutionsHardwareHardware029Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement

296、strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityEssential

297、 contributions:Solving global environmental issues,developing a digital society and improving peoples well-beingAs essential areas for contribution,we will work to expand Fujitsu Uvance and other businesses and promote internal initiatives to accelerate the reduction of negative effects while promot

298、ing greater positive impacts on our operations and society.Approach to MaterialityMaterialityItemApproaches for fiscal 2025(main initiatives)Solving global environmental issuesClimate change(Carbon neutral)Visualize/reduce GHG emissions in the supply chain Visualize energy usage at factories and oth

299、er facilities(automate primary data collection)Identify a broad spectrum of supply chain risks,including disasters,pandemics,and international political risks Develop and make effective use of new energy sources and materials,such as clean ammonia,and improve traceability Optimize and integrate natu

300、ral energy into social infrastructure systems Enhance resilience against emergencies in cities More accurate weather forecasts and disaster prevention simulations Reduce GHG emissions at business sites(promote energy savings and increase renewable energy use)Promote energy-saving product design and

301、reduce GHG emissions in the supply chainResource circulation(Circular economy)Reduce losses and enhance traceability through the use of blockchain Promote the effective use of materials through the visualization of product quality,etc.Enhance resource traceability with the aim of creating environmen

302、tal value through recycling Establish recycling schemes and assure a stable supply of recycled resources though business-to-business data sharing Reduce water usage at business facilities and raise awareness of water source security upstream of the supply chain Promote greater resource savings in pr

303、oducts and improved resource circulation Get involved in activities to standardize business models and circular economy indicators,and measure social impactsLiving in harmony with nature(Protection and restoration of biodiversity)In business activities that take biodiversity into account,use busines

304、s planning simulations to visualize environment conservation and impact severity Protect water and forestry resources and limit excessive consumption by developing new materials and adopting new production methods Reduce negative impacts and increase positive impacts on biodiversity in areas of busi

305、ness activities,including the supply chainDeveloping a digital societyMaintaining security of information Ensure that customer systems and businesses are trusted by providing secure Hybrid IT platforms Provide resilient Hybrid IT platforms along with more rigorous IT and security governance for miss

306、ion-critical areas such as public-sector and financial institutions Enable security management that is capable of responding quickly to stricter and more sweeping regulations,such as the Data Protection Directive Combine Zero Trust Security technology and other technologies to create a new high-spee

307、d,high-capacity network security technology that offers enhanced reliability and convenience Stronger governance:implement countermeasures more quickly and effectively by bolstering on-site security systems and active intervention by management Stronger responses to cyber threats:use more rigorous i

308、nformation management and responses,and security risk visualization that includes prediction Stronger supply chain security:consolidate data in secure development environments and data management environments,and develop training to achieve more mature security Business growth for customers and soci

309、ety Internal initiatives030Fujitsu Integrated Report 2023Fujitsu Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Te

310、rm Management PlanInterview with the COOMessage from the CFORevision of segmentsApproach to MaterialityApproach to MaterialityMaterialityItemApproaches for fiscal 2025(main initiatives)Developing a digital society(continued)Eliminating the digital divide Optimization tailored to patients and the dem

311、ocratization of advanced healthcare Enable more advanced decision-making and problem solving for the traceability and verification of raw materials Promote the adoption of integration and corporate IT consulting through co-creation with financial institutions Build broadband networks for local gover

312、nments(US)Leading ethical AI and IT Provide AI that complies with AI ethics guidelines and ensures reliability and transparency with respect to AI by providing explainable AI(improve sustainable reliability in business by using explainable AI to predict the risk of illegality from companies financia

313、l and non-financial data)Provide consulting services for areas such as creating guidelines and ethical rules for the appropriate use of AI Implement initiatives aimed at disseminating AI ethics,such as providing AI ethics training to employees and customers,and formalizing the Fujitsu internal pract

314、ice of AI ethics Provide technology and ecosystems that simplify the identification of AI ethics risk by AI developers and customers themselves,and present solutionsEnsuring a positive work environment and addressing labor shortages Provide ways to make work(production,distribution,shipping,sales,et

315、c.)both safer and more efficient by using automation technology,AR/VR,and remote communication Respond to changes in working environments,formulate and implement strategies by visualizing and analyzing worker feedback and working conditions,thereby improving engagement and innovating workstyles with

316、 the focus on the workers themselves Make operations more efficient and advanced using digital technology,and plan the optimal workspace for customers business transformation Provide high-usability services by using more advanced digital touchpoints with automated technology,multilingual support,and

317、 AIOpsAssuring responsible supply chains Provide stronger management through improved supply chain traceability Enable detection of a broad spectrum of supply chain risks,including disasters,pandemics,and international political risks Enable digitalization and resilience in supply chains that are sh

318、ared by multiple corporations on a global scale Enable sustainable consumption and waste product reductions through end-to-end optimization of the value chain Offer logistics optimization and retail(OMO)management Enable digital tracking of products along the supply chain Enable new value creation/c

319、onversion using secure platforms that support expanded ethical purchasing Prevent and reduce human rights risks in the supply chain Promote reduction of GHG emissions in the supply chain Ensure supply chain diversityImproving peoples well-beingContributing to healthcare for an improved quality of li

320、fe Connect medical institutions with external institutions and services to enable the mutual exchange of consumers and patients treatment and lifestyle information Individualize and optimize a patients end-to-end healthcare journey,from prevention through to treatment and recuperation (effective per

321、sonal healthcare)Promoting lifelong education and reskilling Provide micro-learning environments that use AI to provide personally optimized education,regardless of time or location Enable strategic reskilling by defining the type of personnel needed to achieve DX,supporting the formulation of perso

322、nnel strategy and personnel development plans,and providing education and training programsImproving customer/consumer experience Personalize marketing/promotions and enable new online and offline purchasing Offer consistent,fluid,and personalized shopping experiences wherever there is contact betwe

323、en consumers and any type of brand channel Provide efficient monitoring,operation,and maintenance for retail systems Enable sophisticated promotions that target consumers by predicting their behavior Business growth for customers and society Internal initiatives031Fujitsu Integrated Report 2023Fujit

324、su Group overview and management policyManagement strategyBusiness strategyReinforcing management capitalCorporate governanceReview of operationsCompany informationTrajectory of change20202022 Medium-Term Management Plan20232025 Medium-Term Management PlanInterview with the COOMessage from the CFORe

325、vision of segmentsApproach to MaterialityFoundation for achieving sustainable development:Technology,management foundation and human capitalAs its foundation for achieving sustainable development,the Fujitsu Group promotes internal initiatives to elevate its technology,management foundation,and huma

326、n resources as sources of value creation.These efforts underpin the creation of new business models and drive innovation.Approach to MaterialityMaterialityItemApproaches for fiscal 2025(main initiatives)TechnologyCreating and developing cutting-edge innovative technologies Quantum:work with customer

327、s to develop apps that use quantum-HPC hybrid technology and develop world-leading error-correction technology.Develop 1,000 qubit machines and further scaling technologies Computing:enhance computing workload broker technology,develop frameworks that will accelerate graph AI,and expand HPC into new

328、 areas such as digital twins AI:provide global customer value through AI platforms that feature AI technology,such as world-leading graph AI and AI trust;strategically acquire specialists in the AI area Data&Security:accelerate innovation-creation using ecosystems with world-leading Web3/Trust techn

329、ology that allows the distribution and use of highly reliable distributed data maintained by companies or individuals Converging Technologies:establish the worlds first social digital twin platform to continually improve society by enabling SX and develop initiatives that use environmental,social,an

330、d economic synergies,and then roll out solutions globallyManagement foundationGovernance and compliance Corporate governance:Undertake continual reviews of corporate governance Fully disclose corporate information that is conducive to cooperative relations with all stakeholders,including shareholder

331、s Promote constructive interaction with shareholders Compliance:Promote the Global Compliance Program to raise awareness of compliance Provide compliance training to suppliersRisk management Conduct internal assessment reviews using tools to measure potential risk,visualize the impacts of those risk

332、s using actualized data,and formulate and implement recurrence-prevention measures Build data-driven risk management systems Build a global solutions network to ensure that overseas risk information is reported to and acted upon by the Head Office promptlyEconomic security management Bolster busines

333、s resilience by assessing risks to business continuity from the perspective of economic security and geopolitics,and then reflect those risks in the business continuity plan(BCP)Strengthen Companywide management across all departments for technologies that include important cutting-edge fields Respond to the economic security countermeasures in each country and regionDigital transformation Expand