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.

Core Insights - Broadcom Inc. is expanding its strategic partnership with NEC Corporation to adopt a modern private cloud using VMware Cloud Foundation (VCF) [1][4] - VCF is designed to combine the flexibility of public clouds with the security and low total cost of ownership of private clouds, enabling consistent management of all applications [2][3] - NEC will implement VCF into its IT systems as part of its "Client Zero" strategy, enhancing its understanding and expertise in VCF [4][6] Company Collaboration - Broadcom and NEC have collaborated for over 20 years, and this partnership aims to drive digital transformation for customers [4][6] - NEC offers VCF-based solutions as part of its value creation model, including a managed service launched in October 2025 [5][6] - The integration of VCF into NEC's BluStellar Scenario is intended to support customers in adopting modern private cloud solutions [6] Market Position - VCF is currently deployed by nine of the top 10 Fortune 500 companies, indicating its strong market presence [3] - Broadcom is recognized as a global technology leader in semiconductor and enterprise software solutions, serving critical markets including cloud and data centers [7]

Financial Performance & Targets - Information & Communication business achieved net sales of JPY 929.3 billion and a non-GAAP operating profit of JPY 50.2 billion in FY2024, with an operating margin of 5.4%[7] - The FY2025 plan aims to increase profit through scaling the digital business and structural reforms of existing businesses[9] - The company projects sales of JPY 907.0 billion and a 7% non-GAAP operating margin for FY2025, and targets sales of JPY 921.0 billion with a non-GAAP operating margin of over 10% by FY2030[30] - The company aims to increase the portion contributed by growth fields to 60% by FY2030, with sales of JPY 542.0 billion and a non-GAAP operating margin of 10%+[30] Business Strategy & Growth Initiatives - The company is shifting from providing standalone digital solutions to "continuous services" that combine multiple solutions, including operational support, to establish a cyclical business model[17, 19] - The company is concentrating on target markets and bolstering proposal activities, focusing on Security, Marketing DX, BPO, and IoT/Auto-ID, with a combined SAM of approximately JPY 6.1 trillion in 2030 and a market growth rate of approximately 7.6%[20, 21] - The company is integrating TOPPAN, TOPPAN Edge, and TOPPAN Digital to strengthen and optimize resources, aiming to visualize the skills of approximately 6,000 DX personnel and reallocate resources[23, 24] - The company is strengthening AI utilization and AI service development to enhance internal productivity and accelerate the provision of high-value-added services incorporating AI[25, 26] Security DX - The company aims to expand its security DX business by shifting from a physical-centric business to a more digital one, centered on data management in secure environments[52, 53] - The company estimates the security DX market potential in Japan to be nearly JPY 2 trillion with a CAGR of approximately 10%[67] - The company is leveraging businesses and manufacturing facilities acquired through M&A to expand the payment and personal ID businesses, focusing on the Global South[76, 78] Marketing DX - The company aims to contribute to "subtraction (reducing costs through marketing BPR)" and "addition (generating profit by enhancing customer experience)" in clients' businesses through marketing DX[94] - The company estimates the marketing DX market with an estimated SAM of JPY 1.3 trillion in FY2024 and a CAGR of 7.7%[96, 97] - The company aims to achieve JPY 100 billion in sales for Marketing DX by FY2030 by providing end-to-end marketing DX and accelerating talent development[117] BPO - The company's BPO business delivers value by leveraging strengths in highly-specialized BPR consulting and business process design capabilities, rooted in an understanding of systems and industries cultivated in the public and financial sectors[140] - The company estimates the SAM of BPO for complex operations is approximately JPY 630 billion, with a CAGR of approximately 5.0%[143] - The company intends to expand sales revenue from JPY 77.0 billion to JPY 83.0 billion towards 2030, growing complex operations at a CAGR of 10% and shifting the proportion of complex operations from 40% to 60%, aiming to enhance profitability and raise operating profit margin from 8% to 15%[164, 165] IoT / Auto-ID - The company is shifting from single items and a one-time model to integrated packaged services and a continuous model in the IoT/Auto-ID business[173] - The company's mission is to give an ID to everything, generate data, and create customer value to enable a society in which all "things" are linked[178] - The company estimates the 2025 SAM for high-value-added RFID markets to be JPY 252.7 billion, growing to JPY 404.2 billion by 2030, with a CAGR of 9.9%[183]

Core Insights - FUJIFILM Holdings Corporation reported a first-quarter fiscal 2025 net income of ¥53.8 billion, down from ¥60.7 billion in the previous year, primarily due to foreign exchange losses [1][9] - Revenues increased slightly by 0.1% year over year to ¥749.5 billion, driven by strong performances in Bio CDMO, Semiconductor Materials, and Imaging segments [1][9] Segment Performance - The Healthcare segment generated revenues of ¥228.5 billion, a decrease of 2.9% from the previous year, with Medical Systems revenues down 8.7% to ¥144 billion due to lower demand in China and lack of large-scale orders [2][3] - Bio CDMO revenues rose by 12.8% to ¥53.2 billion, attributed to new operations in Denmark and resumed operations in Texas, despite maintenance impacts [4] - In the Electronics segment, revenues were ¥102.1 billion, down 0.9% year over year, with Semiconductor Materials revenues increasing by 3.8% to ¥64.7 billion, while AF materials revenues fell by 8.2% to ¥37.5 billion [5] - The Business Innovation Solutions segment saw revenues of ¥273.6 billion, a decrease of 2.3%, but business solutions grew by 7% to ¥75.8 billion [6] - Imaging Solutions revenues increased by 11.2% to ¥145.3 billion, driven by strong sales of Instax systems and high-end digital cameras [8][10] Financial Overview - Selling, general and administrative expenses decreased by 4.6% to ¥196.6 billion, while research and development expenses increased by 0.9% to ¥40.6 billion [11] - Operating income rose by 21.1% year over year to ¥75.3 billion, mainly due to higher sales in the Imaging segment [11] - As of June 30, 2025, cash and cash equivalents were ¥160 billion, down from ¥172.1 billion, with total debt at ¥749.8 billion [12] Future Guidance - FUJIFILM expects fiscal 2025 revenues of ¥3,280 billion, indicating a growth of 2.6% year over year, with anticipated operating income of ¥331 billion and net income of ¥262 billion [13][14]

Investment Rating - The report maintains an Overweight rating for BayCurrent, reflecting its long-term growth potential despite limited short-term upside [1][4]. Core Insights - The price target for December 2025 has been raised from ¥8,000 to ¥8,600, indicating a 5% upside as of May 22 [1][10]. - The consulting market is experiencing significant growth, and BayCurrent's recruitment efforts are expected to stabilize project assignments [1][9]. - The company is projected to maintain a return on equity (ROE) of at least 40% from FY2026, supported by a new capital policy that includes a dividend payout ratio of 40% and a total return ratio of about 60% [1][6]. Financial Estimates - For FY2025, revenue is forecasted to grow by 25% year-over-year to ¥144.6 billion, with operating profit increasing by 23% to ¥52.3 billion [6][8]. - The three-year compound annual growth rates (CAGRs) for sales and operating profit are expected to be around 20%, with consultant headcount growth at 17% [6][8]. - The report anticipates a gross margin of 53.7% and an EBITDA margin of 36.8% for FY2026 [8][15]. Market Position and Client Trends - BayCurrent's core clients include major companies like Nissan and Honda, which together accounted for approximately 11% of sales in FY2024 [6][9]. - The report notes that concerns regarding investment by Japanese exporters due to potential US tariffs have eased, which may positively impact BayCurrent's business [6][9]. - The company is expected to benefit from synergies with NTT Group, potentially leading to increased sales contributions [6][9].