Takahito Tokita
Representative Director
CEOMessage from the CEO

Photo of Takahito Tokita, Representative Director, CEO

Renewing our competitive advantage in response to the breakneck evolution of AI

Fujitsu’s vision for 2030 is to be “a technology company that realizes net positive through digital services.” In formulating this vision, the Fujitsu Group took a long-term perspective to envision the kind of society we should aspire to create. We examined the value that society will demand in the future, the businesses and services that will generate that value, the technologies required to support them, and the workforce portfolio needed to deliver it all. However, we now find ourselves facing changes that could not have been fully anticipated at the time these discussions took place. Specifically, we are witnessing the breakneck evolution and widespread adoption of artificial intelligence (AI) and the emergence of new business models and services powered by it.

How can we, as a technology company, keep pace with this speed of change while continuing to deliver high added value to customers and society and also achieve sustainable growth? One of the answers I have arrived at is the need to consistently update and share our industry- and business-specific expertise which forms the foundation of our competitive advantage.

Some may wonder why we place such emphasis given our focus on providing cross-industry digital services that transcend traditional industry boundaries. The reality is that accurately identifying customers’ management challenges and providing meaningful consulting support is only possible through a deep understanding of their businesses and industries, including global trends in technology, markets, co-creation, and regulation. Accordingly, I have embarked on fiscal 2025 with a renewed determination to rebuild a system that enables us to continuously accumulate and share this understanding.

About Fujitsu

Building a new business model shaped by three main initiatives

We are currently implementing the 2023–2025 Medium-Term Management Plan (medium-term plan) which is oriented around the theme of building a business model for sustainable growth and improved profitability with a view to 2030 and beyond. We are focusing in particular on three main initiatives: transforming our business model and portfolio, ensuring reliable support for customers’ modernization, and improving the profitability of our international business. If these three main initiatives yield results, our business model will evolve substantially by the end of fiscal 2025.

In fiscal 2024, we made significant progress transforming our business model and portfolio in two key areas. The first is the carve-out of non-core businesses. In our medium-term plan, we clearly stated our intention to concentrate management resources in the Service Solutions segment, which we define as a growth area. At the same time, we have explored independent growth opportunities for the Device Solutions segment, which we position as a non-core business. In fiscal 2024, we decided to carve out three subsidiaries within the Device Solutions segment—Shinko Electric Industries Co., Ltd., Fujitsu Optical Components Limited (currently, Furukawa FITEL Optical Components Co., Ltd.), and FDK Corporation—and aim to complete the transfer of these businesses within fiscal 2025. Accordingly, in our fiscal 2024 results we classified the Device Solutions segment as a discontinued operation, marking a significant shift in our business portfolio.

The second area is the growth of our core Service Solutions segment. In this segment, our goal is to shift from a labor-intensive, system integration (SI)-centric business model to one centered on delivering cloud-based digital services. Positioned as a core driver of this transformation, Uvance achieved 31% revenue growth year on year in fiscal 2024, demonstrating clear progress toward our vision.

We also continued to see improvements in our gross profit margin, which rose by 1.9 percentage points year on year. This increase reflects the positive impact of our efforts to standardize and automate system development, or “delivery,” which refers to the process of configuring and providing IT systems to customers. Our value-based pricing strategy in customer negotiations has also contributed to this outcome. These initiatives are steadily contributing to our transformation toward a more profitable business model.

Our modernization of customers’ IT assets also exceeded expectations, driven by strong demand for upgrades of mission-critical systems. However, our focus on modernization is not based solely on short-term market growth prospects. It has now been three years since we announced the planned discontinuation of sales and support for our legacy mainframes and UNIX servers, which were once a core business. With complete discontinuation scheduled for 2035, it is our responsibility to pave the way in modernization for customers still using over 600 mainframes and an order of magnitude more UNIX servers. Customers are also transforming their businesses and optimizing their portfolios. As a result, needs for IT systems are also shifting from on-premises or large, rigid, and proprietary system architectures to hybrid and cloud-based environments, and evolving accordingly toward digital services that enable data utilization. To quickly capture and respond to these evolving needs, we must take the lead in driving modernization.

In our international business, we are making progress on structural reforms aimed at shifting to a services-focused model. In the Americas, which was the first region to undergo reforms, although our business there is small in scale, profitability has improved steadily. Using this transformation model as a reference, we are in the final stretch of structural reforms to streamline low-profitability businesses in Europe, and similar efforts have also commenced in the Asia Pacific region. By shifting away from a business model centered on hardware and concentrating resources in the Service Solutions segment, we will further enhance the stability of our earnings base.

Uvance

Demonstrating our competitiveness in the application layer

It is clear that progress made so far in transforming our business model has been driven not only by the growth of our core Service Solutions segment, but significantly by the carve-out of our non-core businesses. This means that from fiscal 2026, as we look toward 2030, we will enter a phase where the true capabilities of the Service Solutions segment will be put to the test. That said, I have a sense of urgency—a feeling that even if our business model transformation continues at its current pace, it may not be enough for us to emerge with a meaningful presence in 2030. If I were to sum up what is missing in a single word, that word would be “Aspiration.”

Our numerous strategic alliances and partnerships are, in my view, a reflection of the strong reputation and market positioning we have established, particularly in Japan. This reputation is built not only on our broad customer base and high market share, from enterprises to the public sector, but on expectations for our technological capabilities, including in-house expertise in developing artificial intelligence (AI), processors, and quantum computers. There is no doubt that the Fujitsu Group currently stands among the global leaders in cutting-edge technology development.

However, the reality is that we still lack the scale and experience required to fully commercialize these technologies. To close this gap, I believe we also must boldly take on the challenge of developing services that deliver the value of technology to our customers, in addition to developing the technology itself. Among the three Fujitsu values set out in the Fujitsu Way, “Aspiration” is what we need most right now. The ability to translate technology into services—the source of our competitive strength at the application layer—ultimately depends on our industry- and business-specific expertise, as I emphasized earlier.

Based on this concept, we reorganized the former Global Customer Success Business Group and Regions (Japan), transitioning in April 2025 to two new industry-focused organizations: Enterprise Business (Manufacturing, Distribution, and Service) and Public Business (Finance, Public, and Social Infrastructure). However, this does not signify a return to the rigid, vertically siloed organizational structure of the past, divided strictly by industry. For example, when we consider growing customer needs for building flexible, resilient supply chains, management challenges cannot be addressed without a cross-industry perspective. At the same time, delivering new value to customers by exploring the underlying causes of these challenges requires deep, specialized knowledge of every industry, including the public sector. This is where our competitive advantage lies. To maintain and strengthen this competitive advantage for the future, we are once again focusing on the accumulation and sharing of industry- and business-specific expertise.

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Fujitsu Way

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Taking on challenges in the global market by embracing market principles

Our shift to an industry-focused approach has another important objective: overcoming the long-standing challenge of developing and delivering services that can be deployed globally.
To date, we have formulated strategies and promoted business operations on a regional basis. We are still advancing structural reforms for each region. However, going forward, rather than focusing solely on optimization by country or region, I want to embed a competitive principle within our organization—an approach where we optimize globally by industry,including the location of operations, with a clear focus on delivering services and creating value for our customers. I want to establish a robust mechanism that enables us to concentrate resources in the strongest industries and businesses in the most optimal locations.

For example, consider Consumer Experience, one of the target areas for Uvance, which involves providing solutions for the retail sector. This area includes offerings based on solutions developed by GK Software, a Fujitsu subsidiary headquartered in Germany. In this case, it may be far more effective and efficient to develop a global strategy with Europe as the operational base, rather than Japan. I want to foster healthy and free competition within the Group to effectively leverage our limited resources—such as technology, talent, and development funds—and take on the challenge of nurturing strong businesses in the optimal locations.

The growing mobility of talent within the Group, driven by the introduction of an internal job-posting system, will undoubtedly become a powerful catalyst for both healthy competition and the creation of momentum for our business model transformation. Over the past several years, we have increased the appointment of external hires to executive positions and expanded mid-career recruitment. We have also reviewed our traditional practice of mass graduate recruitment, and from fiscal 2026, we plan to apply a job-based human resource management approach for all hires, regardless of whether they are new graduates or mid-career professionals. While we recognize that we still have work to do in terms of gender balance, the number of women in management positions is steadily increasing. Fujitsu Transformation (Fujitra), our internal transformation project, is driving changes in our talent portfolio and the evolution of data-driven management is reinforcing the organizational foundation needed to embed our business model transformation.

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Seizing opportunities created by technology

Our competitors today are not limited to other IT vendors. Increasingly, our customers themselves are pursuing in-house IT system development, creating and deploying their own business applications. If these companies quickly adopt AI agents and master generative AI, our relevance as a technology partner could be at risk. To fully demonstrate our true capabilities as a technology company, we are accelerating both the enhancement of our AI platform Fujitsu Kozuchi and the integration of AI into Uvance. At the same time, the utilization of AI in modernization projects and in our conventional system integration business is essential—not only for improving service quality and reducing lead times but for strengthening our competitive edge in the market. With a firm determination to seize the opportunities that technology brings, we will aggressively incorporate AI into our services to drive growth.

The same applies to the development of FUJITSU-MONAKA, our next-generation energy-efficient processor for data centers. In November 2024, Fujitsu entered a strategic partnership with Advanced Micro Devices, Inc., and in May 2025, we began collaborating with NVIDIA Corporation around its GPU offerings—an initiative expected to expand our future business opportunities.

Looking further ahead, I believe the market potential for quantum computing is enormous. Even on a global scale, there are only a limited number of companies capable of developing quantum computers—and those with the technical capabilities to manufacture actual quantum hardware are exceedingly rare. Against this backdrop, Fujitsu and RIKEN have jointly developed a 256-qubit superconducting quantum computer,significantly enhancing our combined computing capabilities. We are also working with pharmaceutical companies and materials manufacturers to rapidly develop pioneering applications using our quantum simulator. In short, the Fujitsu Group is positioned at the forefront of the new markets that will be opened up by the broad adoption of quantum computing.

Private-sector businesses are not the only players eager to leverage advanced technologies. Our technological foundation—ranging from traditional core strengths such as telecommunications and system integration to cutting-edge fields such as AI and quantum computing—is also attracting considerable attention from the national security domain. In fact, we are engaged in various discussions with Japan’s Ministry of Defense regarding critical technologies essential to national security, including AI and quantum computing. As global society undergoes major transformations and discussions continue around the creation of new security frameworks, I am increasingly convinced that the areas in which we must contribute to realizing Our Purpose, and the fields where we, as a technology company, must deliver net positive outcomes, are expanding further than ever before.

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Fujitsu Key Technologies

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Acting on our determination to create value in 2030 and beyond

To pursue Our Purpose and achieve our vision for 2030, we must strengthen our internal cohesion. Recently, we reviewed our Materiality and engaged in renewed discussions among senior management regarding the value we provide to customers. We reorganized our specific areas of focus accordingly, taking into account Fujitsu’s unique character. In addition, we launched a task force in 2022 to advance our analysis of the correlation between non-financial and financial indicators. This initiative is not only a key component of data-driven management, which enables highly efficient and rapid decision-making, but also plays a critical role in encouraging each employee to recognize the value generated by their own work and fostering momentum for transformation.

As we enter fiscal 2025, the final year of the current medium-term plan, I am keenly aware of our responsibility to deliver on the commitments we have made to our shareholders and investors. At the same time, my sights remain firmly set on 2030 and beyond. We are transforming our business model and portfolio, delivering technology-driven services centered on AI and quantum computing—key drivers of that transformation— accumulating and sharing the industry- and business-specific expertise essential to delivering technology for our customers, and developing advanced technologies. All of these initiatives, as I have explained throughout, are indispensable for ensuring the Fujitsu Group continues to grow and enhance its corporate value well beyond 2030. Fiscal 2025 will also see us begin deliberations toward the next management plan. The progress towards these goals and the results that we are achieving will inform these discussions.

We will strive to enhance our corporate value by building a business model that facilitates sustainable growth and improved profitability, which is the core theme of our plan, and demonstrate our presence in advanced technology fields. With unwavering
“Aspiration,” we will continue our efforts to become a company that realizes net positive and delivers high added value to society through 2030 and beyond.