Good morning, hello. My name is Isobe from Fujitsu. First of all, thank you very much for attending the sustainability briefing by Fujitsu Limited. First of all, I would like to talk about the entire picture of the Fujitsu sustainability management. To introduce myself, I'm CSSO. In April last year, I became Chief Sustainability and Supply Chain Officer, so about a year ago. When I joined Fujitsu, when I started my career, I was in charge of the procurement logistics, and that's my area of specialty. My title is CSSO, and I'm the first CSSO at Fujitsu in the area of sustainability. The Chief Sustainability Officer was my preceding officer, so the S was added to my position. This is described in a way that we made transition from a principle to action. Purpose was set by my predecessor, and materialities were also set.
The philosophies and concepts were introduced by my predecessor, CSO. Yes, now it is time to bring principles to action. There are several challenges related to sustainability, and supply chain is one of the major areas and issues in the field of sustainability, so S was added. Supply chain, in the area of supply chain, I built my career. In that process, so-called the green procurement that we were engaged, CSR, sustainability that we talk about today, the topics related to sustainability were also important to supply chain, and its importance has been growing. That is the reason why we introduced this notion of CSSO globally, driving the notion of sustainability. This is our purpose, once again, to make the world more sustainable by building trust in society through innovation. Throughout our activities at Fujitsu, this is our starting point, our purpose.
Two years ago, we introduced and formulated this vision for 2030, a technology company that realizes Net Positive through digital services. So this is our vision.
このネットポジティブへの取り組み、ビジョンに向けた取り組み。
For this net positive. As we work on our efforts on vision, the growth as a company and the enhancement of the corporate value will be realized. That is our view. In that area, the important theme is identified as materiality, essential contributions to have impact in that area. And as you can see at the very bottom of this slide, the foundation for achieving this, we have a two-phased approach as a structure.
このマテリアリティについてもう少し。
With respect to this materiality, I would like to introduce further, as I mentioned, the blue part, the foundation. And with that foundation, there is foundation, and against the pink parts, the contributions will be made. On the top, you have three areas of contributions: planet, solving global environmental issues; prosperity, developing a digital society; and people, improving people's well-being. These areas, and as the foundation, technology, management foundation, and human capital, it consists of three. And today, on people, Mr. Hiramatsu will address to you. And actually, there are three on the top and three on the bottom, and we have subcategories, and we have a total of 25. That is our materiality. In those areas, mainly in business, technology, digital service, will be provided to customers and to the society to bring about impact.
Not only business, not only commerce, but the initiative to community, supply chain, and to employees, we will continue to yield impact. When we say impact, social impact is what we are trying to deliver. At the same time, we will achieve financial performance and financial impact. That is our Materiality and what we are trying to aim for with Net Positive.
こういった活動をやっていく中で、
As we go through these activities, the so-called financial KPIs and non-financial KPIs, how are we organizing them? I would like to briefly talk about that. Through business activities, revenue and operating profit margin will improve. Of course, we do have such financial indicators, but in order to enhance corporate value, as you can see at the bottom green part, non-financial indicators are also raised, and by achieving both, we are going to enhance corporate value. That is our aim. The non-financial indicators we have at the moment include greenhouse gas emission reduction and customer Net Promoter Score, productivity enhancement, employee engagement, and diversity leadership. We have the numerical targets to address them, and this is the final year, and that is the current medium-term business plan. These non-financial indicators are laid out, but with these indicators, we are trying to deliver results to lead to financial performance.
As you can see at the very bottom, the human resources management may have some impact, and by leveraging digital tools, these KPIs will be boosted, and how are we going to change the approach to customers, and those would work effectively to the top. The causal relationship and correlations of them. Our R&D, by using our exploration technology for causal relationship, we are about to work on improvement. That is our current position.
当社のサステナビリティに関する取り組み、ウェブ上に。
Our efforts on sustainability are disclosed on our website. In our integrated report this year, you see the message of our CEO as a short video. Please take a look at this when you have time. That concludes my presentation. Thank you very much for your attention.
ありがとうございました。続きまして。
Thank you very much. Now, let us move on to the next presentation about the Fujitsu Human Capital Strategy by CHRO Hiramatsu. Thank you very much for taking the time to join us today. I'm Hiramatsu, CHRO of Fujitsu Limited. Today, I will be explaining our human capital management efforts to increase our corporate value and growth in our business, titled Enhancing Corporate Value: Fujitsu's Human Capital Strategy. First, allow me to introduce myself. I joined Fujitsu in 1989 and have consistently built my career in the human resources area. In particular, in 2019, when Tokita became the president, I became responsible for human resources, implementing work-style reforms such as a transition to job-based human resources management and work-life shift, and carrying out human resources reforms that support the company's management strategy and business portfolio reforms.
Outside the company, I participate in various expert meetings, including the Cabinet Office Council for Realizing New Forms of Capitalism, in order to contribute to the total transformation of Japanese companies as a whole. Now, I'd like to explain our HR transformation along with the history of our business structure transformation. This slide shows the evolution of our business structure reforms and the trend in market capitalization. Since President Tokita took office in 2019, our company has transitioned into a DX promotion period. During this period, we advocated purpose-driven management and pursued fundamental qualitative transformation from IT company to DX company. The foundation for this is our company-wide DX Fujitra and personnel reform. As a result, our market capitalization reached JPY 8.73 trillion as of December 12, 2025, and our corporate value is steadily increasing. President Tokita strongly believes that the people are the core of the transformation.
He says, "The business will follow. People are the driving force." These words demonstrate our unwavering determination to first embark upon HR reform and increase the growth and engagement of each employee, which will ultimately lead to the successful reform of our business portfolio and increase corporate value. Fujitsu does not simply respond to changes in the VUCA era. We aim to be a company that contributes to the sustainability of society by working with our employees to develop the ability to create changes ourselves, to achieve our purpose of making the world more sustainable by building trust in society through innovation. We have defined our HR vision as a DX company where diverse talents gather to create innovation everywhere in society, and we introduce the various HR initiatives. Our human capital management is based upon this framework, the Human Capital Value Enhancement Model.
Starting from our corporate philosophy and purpose, we begin by drawing up a vision, business strategy, and the future human resources portfolio required for that. As initiatives for generating results, we clarify the as-is-to-be gap of the human resources portfolio and formulate an action plan that involves investment, consistently capturing everything from defining the necessary human resources requirement to acquiring, allocating, and developing their capabilities, and at the same time, for initiatives for sustainable impact, we have drawn up a structure that ultimately leads to revenue generation and increased profits. To realize this framework, we have made the bold move to a full model change to job-based HR management. This is because a personal system without consistency will not resonate with employees or lead to changes.
First, we design organizations and positions based upon business strategy, and then clarify responsibilities, authority, and the personnel requirement through job description, job-based compensation system, and a remuneration for highly skilled professionals, encouraging employees to take on greater responsibilities. We also delegate authority for recruiting, posting, and other matters to the field, achieving optimal resource management initiated by the business division. We also strongly support autonomous learning and growth by introducing on-demand education and one-on-one meetings. The picture on the left depicts our HR reforms as a tree. With job-based HR management as a foundation, we aim to improve an organizational culture while improving our financial and non-financial indicators as outcomes. Today, I will talk about the four initiatives that form the foundation: job-based HR management, career ownership, diversity and inclusion, and employee engagement, and the non-financial indicators that are linked to them together with specific data.
Fujitsu's traditional human resource management approach was based upon assigning the right person to the right position. We designed the organization on the assumption that existing human resources would not change significantly and formulated business strategies to maximize the performance. However, today, where the market conditions are changing and global competition is intense, this approach is not enough. We formulate strategies by predicting changes in the market and competitors and envision the organization and HR needed to realize those strategies. From there, we clarify gaps with the existing human resources and implement specific measures to fill these gaps, and this has led to job-based HR resource management that selects the right person to the right role. This will more strongly align management strategies with human resource strategies, ensuring business growth from a human perspective. The core of this system is the significant expansion of postings.
Whereas previously, the transfers, rotations, and promotion funds were led by the organization, but the job-based model marks a major shift in the way each employee independently considers their own career path and aims for transfers and promotions to managerial positions through postings. This allows employees to take a more proactive role in seizing opportunities for their own growth, and each organization can also assign the best possible persons to the right positions, creating a system that benefits both parties. Since the introduction of the internal posting system, its use has expanded dramatically. As this graph shows, we have significantly expanded posting since fiscal 2020, creating an environment where employees can actively develop their careers on their own volition through the year. Of approximately 70,000 employees in Japan, about 35,000 have applied for internal posting over the past five years, and 13,000 of them have been successful and transferred.
This data clearly shows the employees have a growing sense of career ownership, and this led to actual action. We believe this will contribute to the revitalization of the organization and more strategic allocation of personnel, ultimately leading to productivity enhancement and growth across the company. In the traditional Japanese employment system, it was common to hire new graduates all at once, but with the introduction of job-based HR management, hiring methods have also undergone major changes. We are no longer bound by the distinction between the new graduates and mid-career hires, and flexibly hiring throughout the year without setting fixed numbers. We will fully transition to this way of thinking from the 2026 hiring year, and by acquiring diverse talent at optimal time, we will always pursue a talent portfolio that is in line with our strategy.
This will enable us to realize a talent strategy that can respond quickly to the changes in the market, contributing to our securing a competitive advantage. Next, I will explain about career ownership. Career ownership by each employee is essential for job-based HR management to take root. We have made a major shift from the previous style in which the company takes a lead on careers to a style in which the company provides career opportunities, which cultivates the ability for employees to think about and shape their own careers independently. This means that the employees are no longer passive, but rather seek out opportunities to take on challenges and receive specialized education tailored to the careers they are aiming for. By improving employee motivation and encouraging autonomous growth, this will become the foundation for supporting the sustainable growth of the entire company.
As a specific measure, we offer various programs. Firstly, in understanding and penetration, we offer Career Café in workshop to reflect on one's own career in the workshop, career counseling to allow consultation with experts and Career Ownership to get insights into current situation and actions. Secondly, in learning opportunities, Fujitsu Learning Experience offers diverse learning options, EX practice, acquiring essential mindsets for DX professionals, and reskilling and upskilling, learning to adapt to business changes are available. Furthermore, our challenge opportunities, expanded posting system, taking on new roles, job challenge, internal internship, and Assign Me as internal side jobs are deployed. Lastly, as fostering an autonomous work culture and organization, Work-Life Shift, expanding work-style options through one-on-one meeting, promoting communication for growth support and management transformation, eliciting empathy from and encouraging challenges from employees, employees' initiatives and engagements are enhanced.
The symbolic measure of understanding and penetration, Career Café, is an interactive participation-based workshop designed to broaden perspectives through conversations with various individuals, offering hints to autonomously consider and act on one's career. From 2021 to 2024, on a cumulative basis, 25,638 employees participated, demonstrating steady penetration of career partnership culture and strong needs for our support measures. Another important measure is the Career Ownership Assessment, supervised by Professor Kenosuke Tanaka of Hosei University. This is an app which diagnoses employees' current career ownership status and provides tips for action by answering 16 questions from FY 2022 to 2024, a cumulative total of 36,979 have used to objectively review their careers, becoming a powerful tool to promote actions toward future creation. This diagnosis serves as a tremendous support to grasp one's career phase and to consider specific next steps from both identity and adaptability of employees themselves.
The core of the learning opportunities is Fujitsu Learning Experience, an on-demand educational platform where each employee sets goals and learns autonomously according to their career aspirations and strengths. The use of this platform is astonishing. In comparison to FY 2020, the participants of Udemy and LIL increased 5.24 to 68,000, and the study hours increased to 5.94 to 950,000 hours. This demonstrates that the employees learn proactively according to their own will and commit to reskilling and upskilling. The autonomous study culture strongly promotes our DX talent development and nurtures expertise essential to business growth. Next is diversity and inclusion. We believe that building an organization where diverse talent can be active is the source of innovation and directly links to the strengthening of corporate competitiveness. We have set specific non-financial indicators in women's empowerment and are committed to achieving that as a company.
As the graph on the slide shows, the ratio of female employees, the ratio of newly appointed female managers, and the ratio of female managers all improved steadily, achieving 31.1% in the ratio of female employees and 21.4% in the ratio of female managers in FY 2024. These indicators are set in STI indicators for directors and senior managers and linked to midterm management plan. Furthermore, through initiatives such as open-call career workshops for female employees, female organizational leader development programs at each business group, and Work-Life Shift, company-wide support is provided to women's growth and empowerment. Also, the employee engagement. We value engagement where each employee works lively and wishes to contribute to the company. If you take a look at the engagement score trend, it steadily improved from 61 in FY 2019 to 69 in FY 2024.
This indicates the enhancement of employees' motivation and company engagement driven by our human capital management efforts, especially job-type talent management and career partnership support and D&I promotion. Enhancement of engagement is viewed as a pivotal indicator directly connecting to employees' performance improvement, attrition rate decline, and corporate value enhancement. As an essential tool supporting enhancement of engagement score, we use Microsoft Viva Glint globally. The survey results visualize each manager's strengths and areas for improvement. It represents the most suitable recommended actions for each manager to promote behavioral change in the management. As a result, utilization of Glint's action registration is approximately 90%. When action-taking scores improve, engagement score improves too. Strong correlation is shown as the data.
This effort is expected to improve the attrition rate of 2.72% in FY 2019 to 2.55% in FY 2024, and contribution to engagement enhancement, attrition rate improvement, and contribution to productivity enhancements are shown in specific figures. To maximize business growth, people portfolio is deeply linked with business strategy. In the next section, I will explain the specific ideas and how they are linked to financial impact. Human capital management is not mere implementation of human resource measures. This slide is quoted from Talent Version Ito Report 2.0 from May 2022, but we totally concur with it. Closely aligned management strategy and human resource strategy clearly visualize and communicate human capital information to stakeholders proactively. That is the essence of human capital management Fujitsu is driving at.
Our people portfolio formulation process begins from the clarification of our business portfolio, clear growth simulation of which business, which area, and how much growth is conducted. On top of that, using the framework in this figure, people portfolio aligned with business portfolio is formulated. In other words, the number of headcount required by roles such as sales, consulting, delivery, R&D will be mapped by growth and downsize businesses, clarify roles to be strengthened, and roles to be streamlined. Furthermore, headcount plan by role is formulated by region, considering each region's market characteristics, talent market situation, and gap from the current talent portfolio. Lastly, specific measures and investment plans are formulated to achieve talent portfolios, and regular monitoring will be conducted by setting KPI. In this fashion, not only quantitative change, but qualitative requirements such as skills held are captured to promote human capital management through a data-driven approach.
This slide shows the changes in financial figures and employee numbers in our Service Solutions business, our main growth driver. While the number of employees decreased from 129,000 to 106,000 from fiscal 2019 to fiscal 2024, revenue grew steadily, and adjusted operating profit margin improved significantly from 8.2%- 15.5%. This is the result of optimal personal allocation, such as posting and reskilling based upon job-based HR management, and improved productivity through the use of AI and other measures. In particular, operating profit per employee has more than doubled from JPY 1.74 million in fiscal 2019 to JPY 3.6 million in fiscal 2024, demonstrating that shifting our business and human resource portfolio to higher profit margin areas is leading to financial return. In fiscal 2023, we raised the average annual salary of all employees by about 7%, up to a maximum of 24%.
Furthermore, in fiscal 2024, we are investing approximately JPY 40 billion in HR reform, aiming to optimize personal allocation and improve productivity through posting, reskilling, and external transfers. This is not simply a cost, but a strategic investment that encourages the concentration of human resources in growth business. This investment has led to significant growth in key areas, such as a 31% increase in Uvance sales and a 70% increase in modernization sales, and a financial impact of approximately a 5% increase in consolidated sales and a 22% increase in operating profit. This data demonstrates that investing in human capital, along with the transformation of the talent portfolio, is directly linked to future growth and corporate value creation. Uvance business, which is driving our high growth, is further strengthening its alignment with our HR strategy. In fiscal 2024, sales grew 31% year on year to JPY 482.5 billion.
We forecast the fiscal 2025 sales to grow 45% to JPY 700 billion. To accelerate this, we have increased the compensation levels of core human personnel by a cumulative 15% over the two-year period from 2023 to 2024, in line with the market rates, and strengthened our range of specialist positions. We are also shifting personnel to priority areas through internal postings and strategic personnel allocation. In addition, we have strengthened investment in skills, including those in 3S, SAP, ServiceNow, and Salesforce, and have seen more than 1,000 employees acquire these qualifications. By applying these skills to Uvance projects, we are further accelerating business growth. Modernizing existing assets is the gateway to Uvance and a driver of improved profitability. In fiscal 2024, sales increased 70% year on year to JPY 296.9 billion, and we are forecasting JPY 330 billion for fiscal 2025, demonstrating strong growth.
In this area, we integrated our engineering companies and reorganized them into advanced engineering organizations and established a new Modernization Knowledge Center. Furthermore, we will expand our Modernization Masters, our modernization specialists, from about 100 in fiscal 2024 to 500 by fiscal 2026. In the mid to long term, we plan to reduce all process man hours by 20%-50% through code conversion and test automation using GenAI, allowing us to shift resources to high-value-added areas such as human and consulting. This will not only improve efficiency, but also create an environment where employees can focus upon high-value-added work. This consulting division, operating as Uvance Wayfinders, is also an important engine for growth. In fiscal 2024, we established a four-region business structure of Japan, U.S., Europe, and Australia, and expanded our human resources through in-house reskilling.
Fiscal 2025 onwards, we will spread out consulting capabilities throughout the company, create examples of end-to-end support for client transformation. In terms of evaluation, appraisal, and compensation, we have defined jobs, grades, and compensation ranges in line with role standards based upon the global common evaluation system and have created a system that made it easy for people with background in consulting firms to work at Fujitsu too. In terms of in-house development, 1,666 people have taken training since 2024, and we are revamping our company-wide rollout and rolling out the training programs company-wide. AI business is also the core of our growth strategy. In fiscal 2024, Uvance 31% and AI-related projects and services contributing both vertically and horizontally.
In fiscal 2025, we set the goal of Uvance 2.0 is data and AI-centric and promote an expansion of a proportion of solutions centered on AI and data, as well as productivity improvement across the company. We have rolled out our in-house AI platform, Kozuchi, across the company, achieving 69,000 monthly active users and about 380,000 total daily usages. We are promoting the transformation of all employees into AI users so that they use AI and data tools, thereby improving productivity across the company. At the same time, we have defined specialized jobs such as data scientists and AI architects and accelerating acquisition of external AI data talent, including acquisition of BrainPad. The various human capital management initiatives I have explained so far are all based upon data. From formulating strategies to implement measures and verifying their effectiveness, we pursue a thoroughly data-driven HR approach.
This is an example of how we conduct data-driven HR. We conduct people analytics by integrating quantitative data such as sales, operating profit, engagement, transfer rates, ratio of female executives, with qualitative data such as employee feedback, including text, comments, and testimonials. As a result, we have confirmed a clear correlation. For example, that the greater the use of internal posting, the higher the sales revenue of the entire company and sales organization. Furthermore, a survey of employees who transferred through internal posting revealed that 50% felt they were able to utilize their strengths and 80% felt they had grown. In this way, through ongoing hypothesis testing, we believe that the increased proactive human resource mobility brought about by posting leads to a more active organization, improved engagement, which has a positive impact on business performance.
For deeper analysis, we also conduct a causal analysis of engagement scores using our people analytics platform, Fujitsu Intelligence PaaS. This slide shows that the factors that directly affect engagement scores differ depending upon gender. For example, for men, initiative and displaying individual strengths influence pride, recommendation, and ultimately satisfaction, leading to engagement score improvement. On the other hand, for women, discretion teamwork significantly contributes to pride, fulfillment, and satisfaction. In this way, by gaining a deeper understanding of the mechanisms of engagement based upon data, we can develop more precise, personalized measures and maximize the engagement of all employees, thereby improving overall corporate performance. Finally, I will explain the direction and the measures for our next midterm management plan. Fujitsu has set the goal of creating value through AI coexistence, human-centric organizational transformation, and data-driven HR.
Specifically, by improving productivity through collaboration between people and AI and promoting organizational and management transformation, we will enable people to focus upon more creative work through coexistence and collaboration with AI. Next, we will promote optimizing our talent portfolio at the global level, leveraging agile team formation and their diverse values to create value creation on a global scale. And through solving social issues and contributing to industry through data-driven HR, we will use advanced data utilization and scientific knowledge to lead the way in resolving human resource issues across the society and developing industry. I'm convinced that these initiatives are essential for our sustainable growth and for providing value to our investors. There are two keys to implementing human capital management: picturing the ideal future and clarifying the gap between the ideal and the current situation.
And then, to close the gap, we need to build an organization with a mobile workforce where individuals can exercise career ownership and take on challenges autonomously. By implementing these two pillars, Fujitsu will maximize its human capital and accelerate the creation of corporate value. Thank you very much for your attention. Human capital management is the most important strategy. Strategy for creating Fujitsu's future, and we will continue to work hard to meet the expectation of investors. Thank you very much.