Fujitsu (6702) Q4 2024 earnings summary

Executive summary

• FY2023 revenue was ¥3,756.1B, up 1.1% YoY; it rose 2.2% excluding restructuring impacts. Profit attributable to owners reached ¥254.5B, while adjusted operating profit was ¥283.7B.

• Service Solutions led growth, while lower hardware and device profits and structural-reform costs weighed on adjusted operating profit.

Financial highlights

• Reported operating profit fell 52.2% to ¥160.3B; adjusted operating profit declined from ¥320.9B to ¥283.7B.

• Adjusted profit for the year rose to ¥235.8B; adjusted EPS was ¥125.6, up 20% YoY.

• Under the financial-statement presentation, profit for the year was ¥266.7B, up 8.9%; total comprehensive income rose 51.4% to ¥332.1B.

• Operating cash flow was ¥309.2B, investing cash flow -¥157.2B and financing cash flow -¥181.5B; year-end cash was ¥342.1B.

Outlook and guidance

• FY2024 revenue is forecast at ¥3,760.0B; adjusted operating profit at ¥330.0B, up 16.3%, with margin rising to 8.8% from 7.6%.

• Adjusted profit for the year is forecast at ¥226.0B, down 4.2%; guidance excludes a ~¥150.0B one-time gain from the planned SHINKO ELECTRIC share sale.

• FY2024 basic EPS is forecast at ¥122.87 after the 10-for-1 stock split; forecast EPS excludes the effect of the share repurchase approved April 25, 2024.

• Service Solutions FY2024 revenue and adjusted operating profit are forecast at ¥2,230.0B and ¥280.0B; Fujitsu Uvance revenue target is ¥450.0B.

• FY2024 core free cash flow and free cash flow are each forecast at ¥220.0B.