Fujitsu

Basic Information

Stock Code
6702
Industry
Electrical Equipment
Category Detail
Diversified Electrical Equipment
Prefecture
Tokyo
Establishment Year
June 1935
Listing Year
May 1949
Official Website
https://www.fujitsu.com/jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hitachi, Mitsubishi Electric, NEC, Panasonic Holdings, Sharp, Sony Group

Overview

Fujitsu is a comprehensive electrical equipment manufacturer founded in 1935, boasting top-class sales in Japan's IT services sector, and is a global leader in manufacturing and selling communication systems and electronic devices.

Current Situation

In the fiscal year ended March 2021, Fujitsu recorded consolidated sales of approximately 3.5897 trillion yen, operating profit of about 266.3 billion yen, and net profit of about 202.7 billion yen. It holds the top market share in Japan's domestic IT services market and ranks in the global top 10. Its main businesses include manufacturing and sales of communication systems, information processing systems, and electronic devices, as well as service provision, with strengths in large-scale system development for government agencies and financial institutions. It has demonstrated high technological capabilities through the development of the supercomputer 'Fugaku' and is actively engaged in environmental conservation. Since 2017, it has sold part of its subsidiary's PC business to Lenovo and its mobile phone business to an external fund, focusing on business selection and concentration. The latest DX promotion project 'Fujitra' is accelerating digital transformation, and it is advancing growth strategies toward 2030. Recently, it has been selling stakes and reorganizing its organization to focus on creating sustainable corporate value.

Trivia

Interesting Facts

  • Fujitsu's supercomputer 'Fugaku' boasts the world's highest performance.
  • Founded in 1935, transformed from communications equipment manufacturing to a comprehensive IT company.
  • World's first commercialization of non-contact palm vein authentication technology.
  • No. 1 domestic market share in IT services, top 10 globally.
  • Global company with approximately 120,000 employees worldwide.
  • Achieved world No. 1 green IT vendor ranking for two consecutive years in environmental magazine.
  • Brand slogan: 'shaping tomorrow with you'.
  • One of the representative stocks on the Tokyo Stock Exchange Prime Market.
  • Long history as a core company of the Furukawa Group.
  • Provides wide-ranging IT solutions for diverse industries.
  • Head office functions relocation from Tokyo to Kawasaki scheduled for 2023.
  • Strengthened international expansion by acquiring Siemens' IT division in Europe.
  • Since 2010, PC business deployed in collaboration with Lenovo.
  • Track record of technical cooperation in Hankyu Bus's demand-responsive bus service.
  • Has experienced administrative guidance and system failures due to past scandals.

Hidden Connections

  • Fujitsu is a council company of the Furukawa Group with broad capital relationships.
  • Supercomputer co-developed with RIKEN receives international acclaim.
  • Major subsidiary Fujitsu Japan is key to expanding domestic service market.
  • Partnership with Lenovo maintains international competitiveness in PC business.
  • Strategic collaborations with leading IT companies like MS and IBM.
  • Extensively supplies indispensable communications network equipment for Japan's infrastructure.
  • Strengthening group's overall IT foundation through cloud and DX promotion.
  • Contributes to enhancing domestic and international recognition through extensive sports support activities.

Future Outlook

Growth Drivers

  • Steady growth in IT services due to robust DX demand.
  • New business development through utilization of AI and IoT technologies.
  • Demand for large-scale system updates in government and finance sectors.
  • Rapid growth in cloud infrastructure market.
  • Increasing social demand for environmental and energy-saving technologies.
  • Results of expansion strategies in global markets.
  • Demand for IoT solutions for smart manufacturing.
  • Rising needs for security enhancements.
  • Acceleration of 5G and next-generation communications infrastructure development.
  • Expansion of IT solutions in health and welfare fields.
  • Technology development contributing to sustainable society building.
  • Enhanced talent utilization through promotion of diverse work styles.

Strategic Goals

  • Achieve over 70% sales ratio from IT services domestically and internationally.
  • Strengthen sustainability as a top ESG-rated company.
  • Maintain world top position in AI and supercomputer technologies.
  • Significantly reduce environmental impact through energy saving and CO2 reduction.
  • Achieve market share expansion in cloud services.
  • Continuously maintain high reliability in systems for government agencies.
  • Scale security services business to 100 billion yen annually.
  • Build business foundation in new markets (smart cities, etc.).
  • Deepen digital talent development and diversity promotion.
  • Deploy co-creation business models contributing to solving social issues.

Business Segments

IT Systems for Public and Government Agencies

Overview
Provides IT systems specialized for the public sector requiring high reliability.
Competitiveness
Most extensive track record in domestic public systems
Customers
  • National and local governments
  • Public institutions
Products
  • Large-scale IT system construction
  • Public cloud services
  • Security solutions

Systems for Financial Institutions

Overview
Top-class track record in providing systems for financial infrastructure in Japan.
Competitiveness
Strengths in security and stability
Customers
  • Banks
  • Securities companies
  • Insurance companies
Products
  • Payment systems
  • Core business systems
  • FinTech solutions

Solutions for Manufacturing and Industrial Machinery

Overview
Provides manufacturing support using cutting-edge technology for smart factories.
Competitiveness
Control technology integrating IoT and AI
Customers
  • Manufacturing industry
  • Equipment manufacturers
Products
  • FA systems
  • IoT platforms
  • Remote monitoring systems

Communications Infrastructure Equipment

Overview
Deploys advanced technology for mobile base stations and networks.
Competitiveness
One of Japan's leading suppliers of communications equipment
Customers
  • Telecommunications carriers
  • Network operators
Products
  • Base station equipment
  • Optical communication equipment
  • Network monitoring devices

Cloud and Data Center Services

Overview
Provides data environments tailored to cloud needs across diverse industries.
Competitiveness
Japan's largest-scale data center operations
Customers
  • Large corporations
  • IT companies
Products
  • Cloud hosting
  • Data center operations
  • Multi-cloud management

Security Solutions

Overview
Provides advanced authentication technology and comprehensive security measures.
Competitiveness
Track record of world's first multi-factor authentication development
Customers
  • Government agencies
  • Finance
  • General corporations
Products
  • Authentication systems
  • Information security measures
  • Monitoring and analysis tools

Energy and Environmental Solutions

Overview
Supports reduction of environmental impact and energy efficiency.
Competitiveness
Top-class in green IT industry
Customers
  • Power companies
  • Environmental companies
Products
  • Energy management systems
  • Environmental measurement equipment

Healthcare and Welfare IT Systems

Overview
IT services supporting efficiency in medical and welfare sites.
Competitiveness
Extensive on-site implementation track record
Customers
  • Hospitals
  • Nursing homes
  • Medical institutions
Products
  • Electronic medical records systems
  • Nursing support software
  • Remote medical support

Services for Financial Payments and Insurance

Overview
Provides financial services using innovative digital technology.
Competitiveness
Blockchain integration technology
Customers
  • Financial institutions
  • Insurance companies
Products
  • Blockchain payments
  • Insurance systems
  • Customer management tools

Education and Human Resource Development Support Services

Overview
Supports education sites and corporate talent development with ICT.
Competitiveness
Diverse educational program offerings
Customers
  • Educational corporations
  • Corporate training departments
Products
  • e-Learning tools
  • Human resource development programs

AI and Digital Transformation Support for Manufacturing

Overview
Realizes advanced and efficient manufacturing processes with AI.
Competitiveness
Track record of integrating AI technology with practical operations
Customers
  • Manufacturing industry
  • Factories
Products
  • AI optimization solutions
  • Factory IoT systems

Logistics and Distribution Systems

Overview
Provides IT solutions for logistics efficiency.
Competitiveness
Experience in implementing large-scale logistics systems
Customers
  • Logistics companies
  • Retailers
Products
  • Warehouse management systems
  • Shipping and delivery optimization software

Competitive Advantage

Strengths

  • High technological capabilities in communication systems and IT services
  • Overwhelming track record for government agencies and financial institutions
  • World-leading supercomputer development capabilities
  • No. 1 market share in Japan's domestic IT services market
  • High evaluation of energy-saving and environmental technologies
  • Wide product portfolio
  • Building long-term customer relationships
  • Global deployment and対応 to diverse industries
  • Advanced AI and DX promotion capabilities
  • Operational efficiency and solid financial foundation
  • Strong brand recognition
  • Wide sales channels domestically and internationally
  • Strong intellectual property rights in technological competition
  • Abundant R&D investment
  • Extensive network of specialized personnel

Competitive Advantages

  • Leads the market in IT systems for domestic government agencies
  • Deploys top-class financial IT solutions
  • Technological superiority of supercomputer Fugaku through collaboration with RIKEN
  • Trust as Japan's No. 1 IT services company
  • Excellent dissemination of green IT technology certified by Ministry of the Environment, etc.
  • Cross-selling through diversified product lineup
  • Advanced technology utilization via DX promotion project 'Fujitra'
  • Stable revenue structure through multi-country deployment
  • Industry-leading security response capabilities
  • Stable revenue base through long-term contracts
  • Broad market access through diverse sales channels
  • Pioneering position in supercomputer and AI technology development
  • Possession of advanced payment and blockchain technology in finance
  • Technology sharing through numerous subsidiaries and affiliates
  • Strong internal IT talent development system and high expertise

Threats

  • Intense competition with global IT giants
  • Supply challenges following withdrawal from semiconductor manufacturing
  • Changes in technology trends due to rapid digital shift
  • Impact of international politics on government procurement projects
  • Sophistication of cyber security risks
  • Rise of emerging country IT companies in overseas markets
  • Intensifying competition in cloud services
  • Impact of customer IT investment cuts and economic fluctuations
  • Recruitment difficulties and talent outflow risks
  • Cost increases due to stricter environmental regulations
  • Impact of exchange rate fluctuations on earnings
  • Risk of scandals leading to loss of social trust

Innovations

2024: Full-Scale Launch of Company-Wide DX Project 'Fujitra'

Overview
Promotes internal digital transformation to accelerate efficiency and new technology utilization.
Impact
Strengthens foundation for operational efficiency improvement and new business creation

2023: Functional Expansion of Supercomputer 'Fugaku'

Overview
Implemented performance improvements for AI analysis and climate change models.
Impact
Enhances support for high-precision analysis in research institutions

2022: Diversification and Strengthening of Cloud Services

Overview
Promotes hybrid cloud deployment with multi-cloud support.
Impact
Improves customer satisfaction and expands revenue base

2021: Development of Solutions for Manufacturing Using AI and IoT Technologies

Overview
Created new product lineup for realizing smart factories.
Impact
Significantly improves operational efficiency in manufacturing

2024: Development of Green IT Technologies to Reduce Environmental Impact

Overview
Introduced energy-saving and CO2 reduction technologies into IT equipment.
Impact
Contributes to 30% reduction in energy consumption

2023: Advanced Security Authentication Systems

Overview
Enhanced biometric authentication technologies such as non-contact palm vein authentication.
Impact
Improved safety expands adoption in public and financial sectors

2022: Absorption and Merger of Major Domestic SI Group

Overview
Implemented organizational integration to boost technological capabilities and service quality.
Impact
Strengthens system construction and customer response capabilities

2020: Reorganization of Mobile Phone Business and New Brand Development

Overview
Balanced sale of part of mobile terminal business with brand maintenance.
Impact
Improves profitability and maintains competitiveness

Sustainability

  • Introduction of world top-level energy-saving technologies in green IT field
  • Promotion of CO2 emission reduction plans and establishment of reporting systems
  • Strengthening environmentally considerate product design
  • Introduction of sustainable procurement standards
  • Active participation in local environmental conservation activities
  • Improved transparency in CSR reports
  • Implementation of recycling and waste reduction programs
  • Operation of highly power-efficient data centers
  • Regular employee environmental education
  • Promotion of green energy utilization
  • Work style reform to improve employee satisfaction
  • Promotion of women's empowerment and fostering a culture of diversity