Fujitsu (6702) Investor Day 2025 summary

Progress against medium-term management plan

• Revenue and adjusted operating profit have grown steadily, with Service Solutions as the main driver, outpacing the domestic IT market with a 9% CAGR versus the market's 6.5% from 2023–2028.

• Profitability has increased, with a JPY 200 billion rise in Service Solutions profitability planned over three years, and international regions now targeting a 5% operating margin.

• Business portfolio transformation included carve-outs of non-core businesses and the creation of independent entities to improve efficiency and decision-making.

• Uvance and Modernization sales grew from JPY 280 billion in 2022 to JPY 680 billion, now targeting 40% of total Service Solutions revenue by 2025.

• Gross margin improvements are driven by delivery transformation, value-based pricing, and AI utilization.

Strategic vision and medium-term management plan

• Aims to be a technology company achieving net positive impact by 2030 through digital services and innovation, focusing on sustainability and trust in society.

• Current plan emphasizes transforming the business model, expanding service solutions, and improving international profitability, with a strong focus on consulting, modernization, and technology-driven growth.

• Revenue and profit targets for FY2025 are ¥3,450 billion and ¥360 billion adjusted operating profit, with a 10.4% margin, driven by service solutions outpacing market growth.

• Portfolio transformation is progressing, with increased revenue from Uvance and modernization, and a reduction in legacy IT services.

Growth strategy and business drivers

• Consulting capabilities are being enhanced through the Wayfinders program, aiming to increase deal size and conversion rates, especially with new customers.

• Uvance business achieved JPY 482.8 billion in revenue in FY2024, up 31% year-on-year, with a target of JPY 700 billion and a recurring revenue ratio rising to 44%.

• Modernization revenue grew 86% year-on-year, with a market share increase from 22% to 26%, and a FY2025 target of JPY 330 billion and 40% gross margin.

• Generative AI (Kozuchi) and proprietary technologies are being integrated into modernization and delivery, improving efficiency by 20–50% and enabling expansion into non-Fujitsu markets.

• Market share in modernization is expected to exceed 30% in FY2025, with a CAGR of 30% through 2030, outpacing the market.