Fujitsu Financial Performance

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2021: Ninth in the world among ICT developers by revenue

According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, in this market reached $613 billion in 2021, which is 10% more than a year earlier. Fujitsu took ninth place in this list.

World's Largest Business ICT Manufacturers

2020: Revenue decline by 6.9%, to 3.69 trillion yen, profit - 202.7 billion yen

Fujitsu ended its 2020 fiscal year with revenue of 3.69 trillion yen (about $34.8 billion at the weighted average rate), which is 6.9% less than a year earlier.

It follows from the company's accounts that its losses due to coronavirus COVID-19 amounted to 146.9 billion yen. Moreover, such losses in the IT Solutions division (Technology Solutions) reached 165.4 billion yen, and in the direction of Ubiquitous Solutions, the pandemic, on the contrary, brought an additional 27.8 billion yen.

Technology Solutions revenue for 2020 FGD exceeded 3.04 trillion yen against 3.21 trillion yen in 2019. In the structure of Ubiquitous Solutions, sales decreased from 334.6 billion to 455.2 billion yen, and in the unit of Device Solutions, turnover fell from 308.4 billion to 293.9 billion yen.

Fujitsu revenue in 2020 fell 7% due to coronavirus

A significant decrease in revenue at Technology Solutions in Fujitsu was associated with the consequence of the coronavirus pandemic, as well as a drop in sales of devices and services related to their maintenance (including computer deployment services).

The company noted an 18.5 percent increase in annual sales of network equipment (up to 245.1 billion yen), which was largely facilitated by a surge in demand for base stations for 5G networks.

The Japanese company still receives most of its revenues in the home market - there Fujitsu's turnover in 2020 reached 2.42 trillion yen against 2.63 trillion yen a year earlier. Abroad, the total revenue of the company decreased from 1.23 trillion to 1.17 trillion yen. In Central and Eastern Europe, to which the Russian market belongs, annual revenue fell from 171.6 billion to 170.4 billion yen annually. In Northern and Western Europe, revenues fell from 356 to 347.8 billion yen.

Fujitsu's net profit at the end of 2020 reached 202.7 billion yen, having increased relative to profit of 160 billion yen a year earlier.^[1]

2019: Revenue decline by 2.4% to 3.86 trillion yen

In fiscal year 2019, which ended at the end of March 2020, Fujitsu earned 3.86 trillion yen ($35.39 billion at the weighted average dollar exchange rate for the reporting period, which is indicated in the company's statements), which is 2.4% less than sales a year ago. The company linked this decline to the restructuring of the consumer computer business and the Device Solutions division.

Technology Solutions registered a 1.3 percent increase in turnover in 2019, which is 1.3% more than a year earlier. Here, most of the revenues were brought by services (mainly systemic integration) - 2.67 trillion yen (+ 0.3%). Sales of system platforms rose by 6.8% and reached 491.3 billion yen, this included network equipment, the implementation of which increased by 2.8%, to 186.4 billion yen.

Fujitsu Financial Performance

In the 2019 reporting year, the Ubiquitous Solutions division showed revenue growth of 7.4%, to 547.8 billion yen, which was largely facilitated by strong computer sales due to the cessation of support for Windows 7 and the transition of companies to Windows 10.

Revenue in the direction of Device Solutions in the 2019 financial year turned out to be equal to 317 billion yen, having decreased by more than a third compared to the previous year. The main reason for this decline is due to the restructuring, on which Fujitsu spent about 175 billion yen. In the fourth quarter of 2018, the indicators of subsidiaries for the production of chips and electronic components were excluded from the reporting. The company also notes the reorganization of the plant in the Japanese prefecture of Mie, which is not taken into account in the financial results from the third quarter of 2019. If you do not take into account these factors, then sales in Device Solutions increased slightly in the 2019 reporting year, Fujitsu claims.

The net profit of the Japanese corporation in fiscal 2019 increased to 160 billion yen from 104.5 billion in 2018.^[2]

2018: 3.6% drop in revenue to 3.95 trillion yen

In fiscal year 2018, the end of which fell on March 31, 2019, Fujitsu's revenue amounted to 3.95 trillion yen ($35.85 billion), a decrease of 3.6% compared to the previous year. The decline is caused by restructuring costs associated with the sale of majority shares in computer and telephone units.

The structure of Fujitsu Technology Solutions, which deals with system integration services and the sale of IT equipment, recorded a turnover of 3.12 trillion yen, which is 2.3% higher than a year ago. Service revenue rose 2.5%, reaching 2.66 trillion yen. In the direction of System Platforms (servers, storage systems, network equipment, etc.) there were sales of 459.9 billion yen (an increase of 1.2% year on year). The implementation of network devices fell by 9.3% to 186.4 billion yen.

Fujitsu Financial Performance

The division of Ubiquitous Solutions, which takes into account sales of computers and mobile phones, showed a decrease in revenue by 23.2% in 2018 compared to 2017 - up to 509.9 billion yen. The decline was due to a restructuring in which the consumer PC business ceased to belong to Ubiquitous Solutions, and the telephone business was transformed after the sale of a 70 percent stake in it. Due to restructuring, the company did not count 210 billion yen of annual income.

The revenue of the semiconductor division (Device Solutions) decreased by 13% compared to year-on-year and amounted to 487 billion yen.

In fiscal year 2018, Fujitsu earned 104.5 billion yen in profit, which is 38.3% more than a year earlier. Profit in Technology Solutions decreased by 0.8%, amounting to 187.9 billion yen. Ubiquitous Solutions recorded losses in the amount of 20.4 billion yen. Device Solutions profit turned out to be 4.5 billion yen, reducing by 67% compared to the 2017 reporting year.^[3]

2017: 0.8% drop in revenue to 4.1 trillion yen

In fiscal year 2017, which ended on March 31, 2018, Fujitsu's revenue amounted to 4.1 trillion yen, which is 0.8% less than a year earlier. In the report for the previous year (2016), the company indicated revenue of 4.5 trillion yen, and now the amount has been lowered to 4.13 trillion yen, which is associated with the sale of assets.

Fujitsu's net profit increased by 91.4% to 169.3 billion yen. About 7 billion yen of this increase was obtained due to the cessation of some operations.

Fujitsu Financial Performance

Due to the sale of the consumer business of a subsidiary of Nifty, the Japanese giant did not count 52 billion yen of revenue. In addition, a significant decrease in the implementation of network products has affected. Excluding restructuring, Fujitsu's turnover increased due to growing computer sales and a low yen rate, which favorably affected revenues from sales of services and equipment.

In fiscal year 2017, revenue from Technology Solutions, which specializes in systems integration services and sales of a wide range of IT products, amounted to 3 trillion yen, a decrease of 2.4% compared to the previous year. Most of the earnings (2.6 trillion yen) came from the service business.

In the Ubiquitous Solutions division, which takes into account income from sales of personal computers and mobile phones, the turnover turned out to be 663.9 billion yen, an increase of 3% compared to the value of a year ago.

In the structure of Device Solutions (semiconductor products and services, batteries and other electronic components), sales were recorded at the level of 560 billion yen, which is 3% more compared to fiscal year 2016.

Fujitsu still earns the most in the home market. In 2017, revenue there amounted to almost 2.6 trillion yen against 1.5 trillion yen of foreign income.^[4]

2016: Lower sales and higher profits due to lower costs

In 2016, Fujitsu sales reached 4.5 trillion yen ($39.4 billion), while in 2015 they were measured at 4.7 trillion yen. The company's net profit grew by 2% due to reduced costs, especially in the telephone and computer business. At the same time, the company's revenue decreased by almost 5%

For the 12-month reporting period closed on March 31, 2017, Fujitsu's net profit amounted to 88.4 billion yen ($774.6 million) against 86.7 billion yen in profit a year earlier.

Fujitsu revenue decreased by almost 5% in fiscal 2016

The revenue rise occurred after the termination of restructuring costs. At the end of calendar year 2015, the company announced the allocation of two of its businesses - the production of PCs and smartphones - to independent companies in order to increase their efficiency and competitiveness. Fujitsu Client Computing Limited was created on the basis of the computer division, and as for smartphones, Fujitsu Connected Technologies took up them. Fujitsu's annual expenses decreased more than tenfold - to 0.6 billion yen.

It follows from Fujitsu's report that the annual revenue at Technology Solutions, which specializes in systems integration services and sales of a wide range of IT products, amounted to 3.1 trillion yen ($27.1 billion), which is 4.8% less than a year ago. Network equipment sales fell by 3.6%, to 246.8 billion yen ($2.2 billion).

In the Ubiquitous Solutions division, which takes into account income from sales of personal computers and mobile phones, turnover decreased by 1.5% to about 1 trillion yen ($8.8 billion).

The structure of Device Solutions (semiconductor products and services, batteries and other electronic components) recorded annual revenue of 544.3 billion yen ($4.8 billion), which is 10% less than a year earlier.^[5]

2015: Revenue $43 billion

In May 2016, Fujitsu announced its performance in fiscal 2015. The company's revenues were below its own expectations due to unfavorable currency fluctuations and weak sales of network products.

According to the results of the period from April 1, 2015 to March 31, 2016, Fujitsu received revenue in the amount of 4.7 trillion yen ($43 billion), which is 0.3% less than a year earlier. The company predicted 60.7 billion yen in larger sales, but they turned out to be less due to unprofitable currency exchange after profit abroad, as well as not high enough compared to the expected revenue in the network equipment business (amounted to 256 billion yen/$ 2.3 billion, down 20% year-on-year). In fiscal 2015, Fujitsu recorded a net profit of 86.7 billion yen.

Fujitsu Results: Net Losses and Earnings Below Expectations

Operating profit decreased by a third to 120.6 billion yen ($1.1 billion), which is 9.3 billion yen less than the manufacturer predicted. Here, additional costs affected the transformation of business outside Japan.

The 12-month period closed March 31, 2016, Technology Solutions (specializing in systems integration services and sales of a wide range of IT products) ended with revenue of 3.3 trillion yen ($30.1 billion), which is approximately the same as a year ago.

Sales of computers and mobile phones decreased by 8.2% to 651.3 billion yen ($6 billion). In the division of Device Solutions (semiconductor products and services, batteries and other electronic components), there was annual revenue of 603.9 billion yen ($5.5 billion), which is 1.4% more than in 2014.

2014: Currency fluctuations doubled profits

On April 30, 2015, Fujitsu published its annual financial report. It follows from it that the revenue of the Japanese company for the year practically did not change, and net profit doubled largely due to fluctuations in exchange rates.

According to the results of fiscal year 2014, closed on March 31, 2015, Fujitsu's consolidated sales amounted to 4.75 trillion yen ($39.8 billion) against 4.76 trillion yen a year earlier. In Japan, the company's revenue fell by 3%, and outside of this country it grew by 4.4%. The share of foreign markets in the income of the producer increased by 1.8 percentage points and reached 39.6% in fiscal year 2014, which was facilitated by favorable exchange of currencies. Thus, the decrease in the value of the yen against the dollar and the British pound added about 120 billion yen ($1 billion) to Fujitsu's annual revenue.

Fujitsu released an annual financial report that brought down the company's shares

Operating profit for the same period rose by 21.3% to 178.6 billion yen ($1.5 billion). Net profit increased from 5.4 billion yen ($45.2 million) in fiscal 2013 to 11.7 billion yen ($97.9 million) a year later.

At the end of fiscal year 2015, which started on April 1, 2015, Fujitsu expects a 16 percent drop in operating profit to 150 billion yen ($1.26 billion), which is less than the forecasts of analysts and the company itself.

Experts believe that the expected decline in Fujitsu revenues is associated with the devaluation of the euro and a change in the company's business focus - from hardware business (mobile phones, computers, etc.) to software and services.

In fiscal 2015, Fujitsu plans to write off 30 billion yen ($251 million) at a loss due to the reform of its business model, said Nomura Holdings analyst Masaya Yamasaki.

Nomura downgraded Fujitsu shares from Buy to Neutral, explaining this by the company's restructuring costs, a decrease in the profitability of the hardware business and the negative effect of the weakening euro.

On April 30, 2015, amid a weak forecast, the value of Fujitsu shares decreased by 18%, which was the largest decline for the company since its entry into the Tokyo stock exchange in 1974.^[6]

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