The following is a summary of the Fujitsu Limited (FJTSF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Fujitsu reported a consolidated revenue of JPY3.756 trillion in FY 2023, a 2.2% increase YoY.
Service Solutions revenue grew about 10% YoY to JPY2.1375 trillion.
Adjusted operating profit was JPY283.6 billion, a decrease of 11.6% due to business restructuring in Europe and lower demand for network and device sales.
The company expects device sales to rebound and network sales to stabilize in FY 2024.
Despite transformation-related losses in certain sectors, Fujitsu still achieved its highest-ever profit in fiscal year 2023 with core cash flow of JPY197.2 billion and free cash flow of JPY151.9 billion.
Business Progress:
Fujitsu is progressing with nonfinancial goals focusing on the environment, customer, productivity, and people, reporting reduced Scope 3 greenhouse gas emissions and increased productivity in Service Solutions.
Fujitsu Uvance sales increased significantly in FY 2023, with plans for further expansion in FY 2024.
Investments are being made in employee training, security, and the development of Fujitsu Uvance offerings.
Digital transformation initiatives for 2024 include operating a unified ERP for its services business in Japan, shrinking low-profit businesses, focusing on high-profit areas, and restructuring European businesses.
The company also launched a dedicated service and storage solutions company in Japan, integrating several functions.
Fujitsu plans to invest heavily in AI and cutting-edge R&D and strengthen management foundation through one Fujitsu initiative.
For FY 2024, Fujitsu expects continued growth from Service Solutions with a projected adjusted operating profit forecast of JPY330 billion and revenue of JPY3.760 trillion.
More details: FUJITSU IR
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