Takahito Tokita
Representative Director
CEOMessage from the CEO

Before turning to the details of Management Vision 2035, let’s take a look at the outcome of the 2023-2025 Medium-Term Management Plan (previous medium-term plan).

The previous medium-term plan was positioned as a three-year period to build a model for sustainable growth and improved profitability toward 2030 and beyond. On the business front, we focused on three key initiatives: business model and portfolio transformation, reliable support of customers’ modernization, and improving international business profitability. As a result of these initiatives, I can report with confidence that we made progress on our shift to a business model that enables sustainable growth and improved profitability.

Our financial results also demonstrate this progress. Comparing fiscal 2025, the final year of the previous medium-term plan, with fiscal 2022, immediately before it began, revenue in our core business of Service Solutions increased 18.3%, while adjusted operating profit rose 121.9% and the adjusted operating profit margin improved by 7.2 percentage points. On a consolidated basis as well, revenue grew 5.2% on the back of factors such as the divestiture of non-core businesses, and adjusted operating profit rose 60.4%, as our earning power steadily improved. As a result, adjusted ROE also expanded from 12.8% in fiscal 2022 to 15.8% in fiscal 2025.

Regarding our technology foundation, we strengthened our AI platform Fujitsu Kozuchi and advanced the development of our next-generation processor FUJITSU-MONAKA and quantum computer, establishing a strong presence as a Japanese firm with advanced technological capabilities in leading-edge fields. The collaborative partnerships that Fujitsu has formed with leading companies across a wide range of industries is a testament to the high regard for our technology foundation.

Building on these results of the previous medium-term plan, we now aim to expand the speed and scale of our growth with technology at the core, guided by Management Vision 2035.

Over the next ten years, society will become AI-driven. From the perspective of corporate management, the most important challenge will be leveraging AI to solve societal issues and create the value that society needs.

Fujitsu anticipates that the important themes in 2035 will be Human Augmentation, i.e., the expansion of human capabilities and potential; Planetary Computing, where high-performance, energy-efficient computing is used to enable the simulation of planet-wide activities; and Security Trust, i.e., the protection of information based on data sovereignty and advanced security.

As society confronts structural transformation and increasingly complex challenges, we will contribute to the realization of these priorities by delivering solutions through the trusted technology that only Fujitsu can provide. We believe this is Fujitsu’s role in society and how we will fulfil Our Purpose.

Our input into the realization of these three themes will come into view through our initiatives in the areas of essential contribution identified in our Materiality: conserving the global environment (Planet), developing a digital society (Prosperity) and improving people’s well-being (People). Based on this thinking, Fujitsu has set out to pursue two strategies centered around technology, as laid out in Management Vision 2035: creating technology-powered business, and further expanding and evolving Service Solutions, which is our earnings base.

We will further accelerate the transformation of our business model advanced under the previous medium-term plan and further evolve Service Solutions, which we have placed on a growth trajectory. This will sustainably strengthen our cash generation capabilities and allow us to make investments to create new technology-driven businesses. This is the growth scenario we envision in Management Vision 2035.

AI is the driver of this business model transformation. In addition to Uvance, which is driving growth in Service Solutions, we will embed AI in all services, including modernization, to enhance the value we deliver to customers. At the same time, we will accelerate our business model transformation by executing our own operations and service development in an AI-driven manner. We plan to evolve our service delivery model through autonomous AI agents, enabling dramatic productivity gains while reducing costs. This transformation is expected to improve our gross margin by more than two percentage points every year over the next decade.

In parallel, we will also change our pricing model for customers. As of fiscal 2025, person-month billing, where fees are calculated based on the total number of engineers and the time required to deliver a service, accounted for approximately 70% of Uvance revenue. We will move away from this billing model and expand pricing models based on the value we provide to customers and the outcomes customers achieve as a result of using our services. Under the previous medium-term plan, pricing was largely driven by bottom-up initiatives on the front lines. Going forward, we will rebuild the pricing model under the direction of management.

The two strategies, creating technology-powered business and further expanding and evolving Service Solutions, are intended to clarify and refine our competitive advantages, thereby achieving value creation unique to Fujitsu and linking it to growth.

Fujitsu’s first competitive advantage is its proprietary advanced technology. In particular, our ability to comprehensively provide the sovereign technology required in domains that handle critical information, such as defense and healthcare, from the platform through to services sets Fujitsu clearly apart from other companies and serves as a source of value creation unique to us. We are convinced that sovereign technology offers significant value, not least in enabling Japan to chart and follow a winning path in the global community.

Our second competitive advantage is our ability to deliver the “last mile” of technology. As AI evolves, we have no doubt that customers will increasingly bring technology in-house themselves. Even so, verifying constantly evolving technologies, selecting their optimal
combination, and implementing them at speed is no easy task. We bridge the last mile of deployment that AI agents alone cannot fill, supporting our customers in reaping the value of this technology.

Our third competitive advantage is the deep knowledge of industries and operations that we have accumulated through business with customers across every industry sector. It is precisely this strength that enables us to deliver value in the last mile, and it is also an indispensable element in advancing the value we provide at the application layer, notably Uvance, which I discuss below. At the same time, given the speed at which AI evolves as it continuously learns the knowledge held by people and organizations, industry and operational knowledge will not necessarily remain a differentiator going forward. Viewed from another angle, the key to maintaining our competitive advantages lies in integrating industry-domain expertise into industry-specific AI agents, and providing it through services that contribute to innovation in industrial structures and to our customers’ transformation.

Aiming to create technology-powered business, we have set three new target domains: Sovereign Platform, a highly reliable and energy-efficient computing infrastructure; Physical AI, in which people and robots collaborate and evolve autonomously; and Intelligent Society, which enables more advanced decision-making through digital twin technology. In these domains, which we estimate will reach a global scale of about ¥30 trillion in 2035, we have set a revenue target of ¥3 trillion, equivalent to 10% of that market.

In the technology domain, we are currently developing the sovereign processors and AI servers essential to Sovereign Platform, an operating system that connects the digital and the physical in Physical AI, and the data platform that underpins Intelligent Society. We are also rapidly expanding our strategic partnerships with companies and research institutions, which form an ecosystem that is indispensable for these technologies to be widely used.
Since entering mainframe development in the 1960s, Fujitsu has built a track record of technological innovation. Behind technology-driven value creation, a central theme of Management Vision 2035, lies our aim to establish a unique position in the market centered on trusted technology. We will achieve this by placing at the core of our business model those technologies that only Fujitsu possesses in Japan, including our development of the FUJITSU-MONAKA proprietary processor.

We are still exploring the business models that will monetize these new domains. Even so, I deliberately decided on technology-powered business creation and a revenue target of ¥3 trillion in Management Vision 2035 because I felt that we must compel ourselves to take on challenges that go beyond the linear progression of the past. Given the pace of innovation, a new business may become old overnight. If we cannot operate at 100% or even 120%, we will be left behind. We will work to create new business with the energy of a startup while balancing this sense of urgency with our excitement to explore new possibilities.

For Service Solutions, we are targeting growth at a compound annual growth rate (CAGR) of 6% to 8% through fiscal 2035. Driving this expansion is Uvance, our business model to solve societal issues. Uvance grew during the previous medium-term plan to account for 30% of Service Solutions, and we aim to expand it at a CAGR of 20% or more from fiscal 2025 to fiscal 2030, raising its share of Service Solutions to at least 70%. AI holds the key to this growth. By integrating industry-specific AI agents grounded in industry-domain expertise into our services, we will enhance the value we provide to customers.

In line with this business strategy, we expanded the organizational management model introduced in Japan in fiscal 2025, and from April 2026 we have pivoted our global organizational management model from a region-centric one to an industry-centric one. Shifting organizational management to an industry-centric model means concentrating resources on businesses and regions that hold growth potential. It is also a statement of management’s resolve to not shy away from hard decisions including discontinuing businesses and withdrawing from regions that are unable to achieve growth.

Taking the pivot to industry-centric management as an opportunity, we have also made clear our focus on the defense business. As one of the companies supporting Japan’s defense, Fujitsu has provided integrated command and control systems and defense information infrastructure over many years. In light of recent changes in the security environment, we will respond to the growing need for trusted technology not only in Japan, but also in Europe and other regions, and fulfill a role that only Fujitsu can play.

For modernization as well, we target a CAGR of 10% or more from fiscal 2025 to fiscal 2030. In addition to modernization for customers using our mainframes and UNIX servers, which we expect to peak in 2029, we will expand our business domain to the modernization of other companies’ IT assets and to modernization toward AI-first systems.

To realize technology-driven value creation and enhance the value we offer to customers, the fundamental premise is that Fujitsu itself is Customer Zero, practicing its own AI-driven management and decision-making, business strategy formulation and execution, and business process transformation, continually updating its knowledge and insights. We are advancing our business foundation by redesigning our organization, people, and security foundations on the premise of AI.

Among these, our people are the most important element in putting AI-driven practices into motion. The dramatic improvements in productivity thanks to AI also signifies the possibility that a single individual with outstanding capabilities can use AI to spur innovation, handle the work of one hundred people, or produce results in one-hundredth of the time previously required. As we move forward with redefining the roles and skills of our people on the premise of AI, it is inevitable that some will find opportunities to excel within Fujitsu while others will find opportunities to excel outside it.

The number of consolidated Group employees, which stood at just over 124,000 at the end of fiscal 2022, totaled just over 99,000 at the end of fiscal 2025. This is the outcome of emphasizing the acquisition and retention of people who can autonomously enhance their own value, and designing a talent portfolio aligned with the business portfolio, an approach that delivered results under the previous medium-term plan, and we intend to continue moving in this direction going forward. We will also actively hire specialized talent and build systems that appropriately evaluate employees who take ownership of issues and continue to hone their capabilities, thereby strengthening our human capital.