Core Insights - Celonis is enabling business transformation at Fujitsu through its Process Intelligence Platform, which enhances decision-making and cost reduction [1][4] - The collaboration has led to significant inventory optimizations and multi-million-dollar savings for Fujitsu's subsidiary, FSAS Technologies [2][3] Group 1: Cost Reduction and Efficiency - Fujitsu has achieved a 20% reduction in excess inventory and a 50% reduction in inventory orders within the first six months of implementing Celonis [7] - The Celonis Platform provides transparency into inventory levels and AI-enhanced recommendations for purchasing and reallocating materials [1][2] Group 2: AI-Driven Transformation - Celonis helps companies like Fujitsu deploy AI solutions effectively by providing necessary context and ensuring integration with existing processes [3][4] - The partnership aims to scale AI across Fujitsu's enterprise, enhancing operational efficiency and customer support [4][3] Group 3: Process Intelligence and Value Creation - The Celonis Process Intelligence Platform creates a digital twin of business operations, allowing companies to understand and optimize their processes [5] - By combining digital transformation capabilities with the Celonis Platform, Fujitsu can deliver tailored solutions that generate significant value [3][5]

Core Insights - Super Micro Computer (NASDAQ:SMCI) experienced a decline of 5.05% to $28.6 due to analyst downgrades and margin concerns, despite a remarkable growth of 3,165% since its IPO in 2007 [1][4] - The trading volume surged to 51.4 million shares, significantly above the three-month average of 26.4 million shares, indicating heightened investor activity [1] Company Performance - The recent "sell" rating from Goldman Sachs, with a price target set at $26, has contributed to the downward pressure on Super Micro's shares [4] - Analyst Katherine Murphy highlighted that increasing competition is eroding margins, even as demand for AI infrastructure continues to grow [5] - Super Micro is focusing on securing AI server agreements to boost sales volume, potentially at the cost of profitability [5] Market Context - The broader market saw the S&P 500 and Nasdaq Composite decline by 0.20% and 0.10% respectively, while peers in the computer hardware industry showed mixed results, with Hewlett-Packard Enterprise rising by 0.88% and Dell Technologies falling by 0.66% [3] - Investors are closely monitoring how AI server demand can mitigate profit pressures amid rising component costs and potential margin headwinds [2][3]

Core Insights - The US is inviting India to join Pax Silica, a strategic initiative aimed at securing the global silicon supply chain in the AI era [1][2] Group 1: Overview of Pax Silica - Pax Silica is designed to identify trusted partner nations to enhance AI efforts and create a robust global supply chain for silicon and related materials [3] - The initiative includes countries such as the US, Japan, South Korea, Singapore, the Netherlands, Israel, UAE, the UK, and Australia, with India potentially joining [3] - Each participating nation is expected to contribute unique strengths in areas like critical minerals, advanced manufacturing, semiconductor capability, and AI innovation [3] Group 2: Importance for India - India's participation in Pax Silica would signify its role in shaping future supply chains for AI and advanced computing [7] - The Indian government emphasizes the strategic importance of being involved in critical mineral security discussions [8] - India's existing initiatives in AI and semiconductors align with Pax Silica's objectives, including the India AI Mission with a ₹10,372 crore budget and the India Semiconductor Mission with a ₹76,000 crore allocation [9] Group 3: India's Technological Landscape - India hosts over 2,975 global capability centers (GCCs), employing nearly 1.9 million professionals, highlighting its significant role in the global tech ecosystem [10][11] - Major multinational investments, such as Microsoft's $17.5 billion investment in AI and cloud infrastructure in India, further strengthen its positioning [11] Group 4: Geopolitical Context - Pax Silica reflects a strategic shift where economic tools are increasingly used for geopolitical ends, particularly in the context of reducing dependence on China [12][13] - China's dominance in critical supply chains, especially in rare earth materials, has prompted India to support domestic manufacturing initiatives [14] - India's potential contributions to Pax Silica include its large market for new technology and its integration into the global tech ecosystem [15]

Summary of Key Points from the Conference Call Industry Overview - Focus on the Asia technology (hardware) sector, particularly the AI supply chain, as a priority investment area for 1H26 due to its significant influence on earnings growth amid concerns over smartphone/PC demand and auto production recovery [2][12] Core Themes and Stock Recommendations 1. **AI Supply Chain Investment**: - Emphasis on investing in the AI supply chain, which is expected to drive earnings growth despite potential slowdowns in other sectors [2][12] - Anticipation of clearer benefits from AI for earnings in 2026, with no signs of slowdown heading into 2027 [12] 2. **Under-the-Radar AI Themes**: - Five notable themes identified: 1. **Power Consumption**: Opportunities in power supply, power rack products, capacitors, and power semiconductors. Companies to watch include Delta Electronics, Panasonic HD, Murata Mfg., Taiyo Yuden, and Renesas Electronics [6][25] 2. **Data Transmission**: Advancements in large-scale data transmission technologies, with companies like Fujikura and Mitsubishi Electric highlighted [6][25] 3. **Niche Components**: Price stabilization and increases in demand for components like MLCCs and substrates, with key players including Murata Mfg. and SEMCO [6][25] 4. **Physical AI Integration**: Companies like Hitachi and Mitsubishi Electric are leading in embedding AI into industrial applications [6][27] 5. **Software/Services Disruption**: Generative AI's potential to improve productivity in Japan's software industry, with Fujitsu and NEC as key players [6][27] 3. **High-Profile Sub-Sectors**: - Continued growth in foundry, memory, semiconductor production equipment, AI servers, and edge AI, with recommended stocks including TSMC, Samsung Electronics, and Hon Hai [30][31] Market Dynamics and Risks - **Top-Down Risks**: - Concerns regarding valuations, implementation risks, over-investment, monetization challenges, and funding sources, particularly with emerging players in the market [13] - **Bottom-Up Perspective**: - Fundamentals differ from the IT bubble of 2000, with a larger scale and longer timeline for AI infrastructure development, and sound supply chain management in Asian hardware [14][16] Technological Advancements - **Power Consumption Trends**: - Significant rise in power consumption for AI servers, with expectations for voltage increases to 800V and beyond, creating business opportunities for power-related products [33][38] - **Data Transmission Innovations**: - Transition to higher communication speeds (800-1.6Tbps) and co-packaged optics (CPO) expected to enhance industry value [58][59] Conclusion - The Asia technology sector, particularly the AI supply chain, presents substantial investment opportunities driven by technological advancements and evolving market dynamics. Key players and themes are positioned to benefit from these trends, while investors should remain cautious of potential risks associated with rapid market changes.

Summary of Conference Call Notes on Japan Industrials Industry Overview - The conference call discusses the Japan Industrials sector, particularly focusing on the implications of China's recent export control measures on dual-use items to Japan [1][2]. Key Points and Arguments 1. **Export Control Announcement**: On January 6, China's Ministry of Commerce announced strengthened export controls on dual-use items to Japan, citing national security and international obligations [1]. 2. **Prohibition Details**: The export of dual-use items to Japanese military users for military purposes is strictly prohibited. Violators will face legal consequences [2]. 3. **Rare Earths Inclusion**: Media reports suggest that rare earths may be included in these export controls, which could have significant implications for Japan's industrial sectors [2]. 4. **Historical Context**: The focus on rare earths is heightened due to China's previous actions in April 2025, when it added several rare earths to its dual-use item export control list [2]. 5. **Ambiguity in Applications**: There are gray areas in distinguishing between military and civilian applications of these items, leading to potential supply disruptions [6]. 6. **End-Use Certification Challenges**: The high bar for end-use certification complicates the situation, as items with both military and civilian applications may fail to pass review [7]. 7. **Industrial Impact**: The potential for widespread industrial impact, especially in Japan's precision and manufacturing sectors, necessitates close monitoring of future developments [7]. 8. **Historical Reactions**: Past issues related to rare earths have caused short-term shocks but also spurred the development of alternative materials in some fields [8]. Additional Important Content - **Analyst Disclosures**: Analysts from Goldman Sachs may have conflicts of interest due to their business relationships with companies covered in the report [3]. - **Valuation Comparisons**: The document includes a valuation comparison table for various companies within the Japan Industrials sector, detailing metrics such as price targets, P/E ratios, and expected returns [9][11]. - **Contact Information**: Contact details for analysts covering the sector are provided for further inquiries [4]. This summary encapsulates the critical insights and implications of the recent developments in the Japan Industrials sector, particularly concerning China's export controls and their potential impact on the industry.

Market Overview - Sentiment in Asian markets remains mixed as they brace for year-end, with focus on FOMC minutes and geopolitical developments in China, the Middle East, and the Russia-Ukraine conflict [1] Stock Indices Performance - China's Shanghai Composite Index closed flat at 3,965.12, ending a nine-day winning streak, with a trading range of 3,947.42 to 3,979.99 [2] - The Shenzhen Component Index increased by 0.50 percent to close at 13,604.07, up from 13,537.10 [2] - Japan's Nikkei 225 fell by 183 points or 0.36 percent to 50,343.50, with a trading range of 50,208.50 to 50,549.00 [2] - Korea's Kospi Index decreased by 6 points or 0.15 percent to 4,214.17, trading between 4,186.95 and 4,226.36 [4] - Hong Kong's Hang Seng Index rose by 219 points or 0.86 percent to 25,854.60, with a range of 25,930.22 to 25,611.23 [4] - Australia's S&P/ASX200 closed at 8,717.10, down 9 points or 0.10 percent, with a trading range of 8,706.60 to 8,751.90 [5] - New Zealand's NZX 50 gained 22 points or 0.16 percent to close at 13,548.13, trading between 13,518.17 and 13,569.85 [6] - Wall Street closed negatively, with the Dow Jones Industrial Average down 0.51 percent to 48,746.93 and the Nasdaq Composite down 0.50 percent to 23,474.35 [7] Company Performance - Fujitsu and Nidec Corp both rallied more than 2.2 percent [3] - Dainippon Screen Mfg Co, Murata Mfg Co, and Nitori Holdings Co gained over 1 percent [3] - Sumitomo Metal Mining led losses with a decline of 4.8 percent, followed by Rakuten, Japan Steel Works, Mitsubishi Materials Corp, and TOTO, all losing more than 2 percent [3] - Netwealth Group rebounded by 2.1 percent, while Temple & Webster Group, Mirvac Group, Santos, and Centuria Capital Group all rallied more than 1.5 percent [5] - Silex Systems and Liontown both plunged more than 4.7 percent, with Newmont Corp losing 4.1 percent and Catalyst Metals and Evolution Mining losing more than 3 percent [5] - Synlait Milk topped gains with a surge of 3.2 percent, while Pacific Edge, NZX, Scales, and Sanford all rallied more than 2 percent [6] - KMD Brands, Summerset Group, Serko, and Genesis Energy all declined by more than 1 percent [6]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Technology sector**, specifically within **Consumer Electronics**, **Industrial Electronics**, and **Precision Electronics** [1] Core Company Insights - **Hitachi (6501)**: - Rating: Overweight (OW) - Target Price: JPY 5,010 - Market Cap: JPY 22,935 million - P/E Ratio: 30.2x for FY1, 28.9x for FY2 - ROE: 14.8% for FY1, 14.2% for FY2 - Dividend Yield: 3.9% for FY1, 2.7% for FY2 [5][7] - **Mitsubishi Electric (6503)**: - Rating: Overweight (OW) - Target Price: JPY 4,793 - Market Cap: JPY 9,947 million - P/E Ratio: 29.4x for FY1, 24.6x for FY2 - ROE: 14.5% for FY1, 12.3% for FY2 - Dividend Yield: 1.9% for FY1, 4.3% for FY2 [5][7] - **NEC (6701)**: - Rating: Overweight (OW) - Target Price: JPY 5,526 - Market Cap: JPY 7,364 million - P/E Ratio: 31.6x for FY1, 26.6x for FY2 - ROE: 14.3% for FY1, 12.2% for FY2 - Dividend Yield: 3.7% for FY1, 4.1% for FY2 [5][7] - **Fujitsu (6702)**: - Rating: Overweight (OW) - Target Price: JPY 4,216 - Market Cap: JPY 7,493 million - P/E Ratio: 17.2x for FY1, 24.8x for FY2 - ROE: 23.1% for FY1, 14.4% for FY2 - Dividend Yield: 4.0% for FY1, 3.1% for FY2 [5][7] - **Sony Group (6758)**: - Rating: Overweight (OW) - Target Price: JPY 4,181 - Market Cap: JPY 25,191 million - P/E Ratio: 23.9x for FY1, 22.3x for FY2 - ROE: 11.9% for FY1, 11.3% for FY2 - Dividend Yield: 2.3% for FY1, 3.4% for FY2 [5][7] Performance Metrics - The average P/E ratio across the companies analyzed is 20.2x for FY1 and 18.7x for FY2 - The average dividend yield is 5.0% for FY1 and 5.3% for FY2 [5] Investment Themes - **AI and Electricity**: Companies like Hitachi and Mitsubishi Electric are heavily involved in AI and electricity-related technologies, with Hitachi focusing on T&D equipment and Mitsubishi on optical devices and submarine cables [10][11] - **Defense**: The Takaichi administration plans to lift restrictions on defense equipment exports, which could benefit companies like Fujitsu and NEC [46] - **Content IP**: Sony Group is increasing its stake in content IP, particularly in the anime market, which has shown significant growth [51][53] Recent Collaborations and Acquisitions - **Hitachi**: Partnered with NVIDIA for AI data center solutions and acquired Synvert to enhance its AI capabilities [55] - **Fujitsu**: Acquired BrainPad for JPY 56.6 billion to strengthen its data and AI business [55] - **NEC**: Acquired CSG Systems for $2.9 billion to enhance telecom offerings [55] - **Mitsubishi Electric**: Acquired Nozomi Networks for $830 million to improve operational technology security [55] Market Trends - The optical semiconductor market is expected to grow significantly, with Mitsubishi Electric holding a leading market share [32] - The submarine cable market is projected to reach JPY 500 billion annually by 2025, with NEC holding a 25% market share [32] Conclusion - The technology sector, particularly in consumer and industrial electronics, is poised for growth driven by advancements in AI, defense, and content IP. Companies are actively pursuing strategic partnerships and acquisitions to enhance their market positions and capitalize on emerging trends [1][55]

Fujitsu Sustainability and Human Capital Strategy Briefing Summary Company Overview - **Company**: Fujitsu Limited - **Event**: Sustainability and Human Capital Strategy Briefing - **Date**: December 14, 2025 Key Points on Sustainability Management - Fujitsu aims to transition from principles to action in sustainability, with a focus on supply chain management as a major area of concern [1][2] - The company has set a vision for 2030 to become a technology company that realizes Net Positive through digital services [3] - Fujitsu's sustainability efforts are structured around three main contributions: planet (global environmental issues), prosperity (digital society development), and people (improving well-being) [5][6] - The company emphasizes the importance of both financial and non-financial KPIs, including greenhouse gas emission reduction and employee engagement [7][8] Human Capital Strategy - Fujitsu's human capital management is designed to enhance corporate value and business growth, focusing on job-based HR management and employee engagement [11][12] - The company has transitioned to a DX (Digital Transformation) promotion period, advocating purpose-driven management and qualitative transformation from an IT company to a DX company [12][13] - Market capitalization reached JPY 8.73 trillion as of December 12, 2025, indicating steady growth in corporate value [12] HR Transformation Initiatives - Fujitsu has implemented a job-based HR management model to align management strategies with human resource strategies, allowing employees to take ownership of their careers [17][18] - The internal posting system has seen significant use, with approximately 35,000 employees applying for internal postings over the past five years, leading to a growing sense of career ownership [18][19] - The company is shifting hiring methods to be more flexible, allowing for mid-career hires and year-round recruitment [19][20] Employee Engagement and Diversity - Fujitsu has seen an increase in employee engagement scores from 61 in FY 2019 to 69 in FY 2024, reflecting improved motivation and commitment [25][26] - The ratio of female employees reached 31.1% and female managers 21.4% in FY 2024, with initiatives in place to support women's growth and empowerment [25] - Employee engagement is linked to performance improvement and attrition rate decline, with a target to reduce the attrition rate from 2.72% in FY 2019 to 2.55% in FY 2024 [26][27] Financial Performance and Projections - Revenue in the service solutions business grew steadily, with adjusted operating profit margin improving from 8.2% to 15.5% from FY 2019 to FY 2024 [30] - Fujitsu plans to invest approximately JPY 40 billion in HR reform in FY 2024, aiming to optimize personnel allocation and improve productivity [31] - Sales are projected to grow 45% to JPY 700 billion in FY 2025, with significant increases in human sales (31%) and modernization sales (70%) [32] Future Directions - Fujitsu aims to enhance productivity through collaboration between people and AI, promoting organizational transformation and optimizing talent portfolios globally [39][40] - The company is committed to resolving human resource issues across society and developing industry through data-driven HR practices [39][40] This summary encapsulates the key insights from Fujitsu's sustainability and human capital strategy briefing, highlighting the company's commitment to sustainability, employee engagement, and financial growth.

Fujitsu's Sustainability Management Takashi Yamanishi © 2025 Fujitsu Limited Takashi Yamanishi Corporate Executive Officer, EVP, CSSO (Chief Sustainability & Supply Chain Officer) April 1989 Joined Fujitsu Corporate Executive Officer, EVP, CSSO (Chief Sustainability & Supply Chain Officer) Fujitsu Limited December 15, 2025 © 2025 Fujitsu Limited 1 Vice President, LSI and Electronic Component Procurement Division, Procurement Unit April 2010 January 2019 Head of Procurement Unit Corporate Executive Officer E ...

Core Insights - The global multi-vendor IT support services market generated approximately $13,830 million in revenue in 2022 and is projected to reach $17,640 million by 2029, with a compound annual growth rate (CAGR) of 3.5% from 2023 to 2029 [3]. Market Overview - The analysis covers the historical performance of the multi-vendor IT support services market from 2018 to 2022, including revenue, pricing, and market share across major regions and companies [2]. - The report forecasts revenue growth for the global market and key regions, as well as revenue predictions by product category and application through 2029 [2]. Regional Insights - In 2022, the Chinese market size was significant, contributing to the global market share, while North America and Europe also held notable shares [3]. - The Asia-Pacific region is expected to play an increasingly important role, with countries like Japan, South Korea, India, and Southeast Asia being highlighted as key markets [3]. Competitive Landscape - The top 10 companies accounted for approximately 60% of the global market share in 2019, with major players including IBM, Fujitsu, and Hitachi, whose revenue shares were 28.45%, 10.10%, and 5.37% respectively [3]. - The market is segmented into hardware support services and software support services, with various applications such as sales and marketing, financial accounting, supply chain, and IT operations being analyzed [4]. Company Profiles - Key companies in the multi-vendor IT support services sector include IBM, Fujitsu, Hitachi, NetApp, NEC, Lenovo, HP, Dell, Oracle, and others [5]. - The report provides detailed company profiles, including business operations, main products, and recent developments in the multi-vendor IT support services sector [5]. Market Dynamics - The report discusses market drivers, barriers, and development trends that are shaping the multi-vendor IT support services industry [2].