Fujitsu Limited (TYO:6702)
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May 1, 2026, 3:30 PM JST
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Investor Update

May 24, 2023

Kunihiko Nomoto
Head of Public and Investor Relations Division, Fujitsu

To begin. Before we begin the explanation of the mid-term management plan, CEO Tokita will talk about the recent system failure.

Takahito Tokita
Representative Director and CEO, Fujitsu

At our company, we had reiterated, repeated information security incidents and systems quality problems at our company and our group companies of late. We have caused much concern and inconvenience to our customers and related parties. I would like to once again offer my deepest apologies. Regarding information security. There were unauthorized access to ProjectWEB and information security incidents in the cloud services. We have caused inconvenience and concern. We apologize for that. There were a series of troubles for Fujitsu MICJET convenience store delivery system. We ended up undermining the trust that residents have in the public administrative services they use.

As announced, yesterday, we have asked each municipality to conduct across the board a system checks with system shutdowns. We sincerely apologize again for the inconvenience caused to many people by the service outage. Regarding cause analysis and measures to prevent recurrence as we announced on May 19th, we have newly appointed a CQO Chief Quality Officer, so we'll establish a mechanism for systems quality control. In addition the risk, and compliance committee, which I chair, will make decisions, on specific measures, including various policies and responses, to individual events and promptly implement them. We will continue our efforts to restore the trust of our customers and society, that was damaged by this incident and realize our company's purpose of making the world more sustainable by building trust in society through innovation.

Kunihiko Nomoto
Head of Public and Investor Relations Division, Fujitsu

Once again. Once again, we would like to commence medium-term management plan of Fujitsu Limited. Thank you very much for your attendance despite your very busy schedule. The presenters for today are Takahito Tokita, Representative Director CEO, and Takeshi Isobe, Director and Corporate Executive Officer SVP CFO. The moderator will be Nomoto from Public Relations/IR. As for how to proceed today, CEO Tokita will speak for about 25 minutes on medium-term management plan, followed by CFO Isobe for about 10 minutes on medium-term management plan segment revision and financial plan. It will be followed by Q&A session. From 4:10 P.M., there will be Q&A session for media, and from 4:40 P.M., we have time for investors and analysts. For the Q&A session, anyone is able to view.

If you would like to ask questions, there is a need for you to participate through Zoom Webinar. Please confirm by the email which is sent to you in advance. Now we would like to begin. CEO Tokita, the floor is yours.

Takahito Tokita
Representative Director and CEO, Fujitsu

Thank you very much for taking time out of your busy schedules to join us today. During the recent financial report for fiscal year 2022, I'll share with you a review of our mid-term management plan which concluded in fiscal year 2022. Today, I would like to explain our new medium-term management plan which will end in FY 2025. I will give a brief summary of the previous medium-term management plan up to fiscal year 2022, and share our future vision, and explain our new medium-term management plan on targets up to fiscal year 2025. First, this is Fujitsu Group's purpose, which is to make the world more sustainable by building trust in society through innovation.

All of our corporate activities are designed to achieve this purpose, which gives meaning and raison d'être to our existence and what we aim to be. Fujitsu Way, which all Fujitsu Group employees must abide by, sets out the three important values of aspiration, trust, and empathy, as well as code of conduct, which are all anchored in our purpose. The Fujitsu Way serves as the basis for our actions and judgments and is also a promise to our customers and society. We're making efforts to spread this to all our employees around the world. I will now revisit and summarize our performance in the previous three-year medium-term management plan. In 2021, we announced Fujitsu Uvance, which is designed to contribute to achieving a sustainable society through purpose-driven business activities.

Fujitsu Uvance is not just a collection of solutions, but a framework for resolving societal issues, through cross-industry cooperation with customers and partners, which is the business model we aim to establish. We are focusing our investments and resources on seven key focus areas in Fujitsu Uvance and five key technologies that support them. Within Fujitsu Uvance, our new businesses are emerging based on social issues. Here are some examples of the supply chain initiatives under that. To ensure sustainability in supply chains, issues to be addressed include reducing environmental impact, ensuring a stable supply of materials in the event of an emergency, as well as optimizing overall supply chain operations. In response to this, Fujitsu provides support to visualizing and enabling reductions in CO2 emissions generated throughout the supply chain, as well as to simulate the impact of hazardous scenarios with proposals for workarounds.

These solutions leverage Fujitsu's own technologies, including Explainable AI. Now, I would like to summarize the performance results in the previous MTMP. Profitability progressively improved over the past 3 years, and in fiscal year 2022, we achieved a record high operating profit margin. For our non-financial indicators, we achieved both the customer Net Promoter Score and DX Promotional Index targets. During this last medium-term management plan, we have identified 7 strategic priorities and worked on them to advance 2 pillars of value creation and internal transformation. As part of our efforts to rebuild our global business, we launched Fujitsu Uvance with global standard offerings and achieved a revenue of JPY 200 billion during fiscal year 2022. We strengthened approach to customer problem-solving by reskilling 8,000 out of 11,000 sales representatives.

We strengthened our foundations for future global business expansion by now having over 30,000 employees in our global delivery centers and Japan Global Gateway. We also established REACH Alliance as a first step to developing and expanding a standard approach to consulting through Fujitsu. For internal transformation, we have been working on digital transformation across all areas. The results of these efforts are reflected in the DX Promotional Index scoring, which has reached the level of a global company. We launched One Fujitsu programs to establish data-driven management on a global scale, as well as reforms to human resources management and adopt more flexible working styles such as Work Life Shift. As a result of these measures, productivity increased and operating profit per employee increased by 60% compared to fiscal year 2019. I will now describe Fujitsu's ideal state.

We have established three areas of materiality, a contribution that are essential to achieving our purpose. These are solving global environmental issues, developing a digital society, and improving people's wellbeing. There are three areas. We have also identified 11 key issues to focus on across these three areas, including addressing climate change, maintaining information security, and contributing to healthcare and wellbeing for an improved quality of life. Fujitsu will contribute to society by fully leveraging our capabilities, including our leading-edge technologies and diverse talents. We will develop and create future technologies and offerings to solve these societal issues I have described. Next, I will explain the concept of value creation for 2030.

We have newly established our vision for 2030 as a technology company that provides digital services that contribute to sustainability cross-industry and realizes Net Positive for stakeholders, including society, customers, shareholders, and employees. Fujitsu defines Net Positive as Fujitsu, which exists in society, must address the materiality of solving global environmental problems, developing a digital society, and improving people's wellbeing, in addition to maximizing financial returns and making a positive impact on society as a whole through technology and innovation. We have set financial indicators and indicators for the three materiality items that meet the 2030 levels and geared our activities, outputs, and outcomes to achieve our vision and our purpose.

By investing capital and pursuing materiality in line with our key strategies, we will continue generating outputs and outcomes in both financial and non-financial terms and invest them as inputs to improve our value proposal and value proposition. This is the positioning of this medium-term management plan. During the 3 years of this medium-term management plan, we will work to transform our business model and business portfolio, provide reliable support for our customers' modernization needs, and improve the profitability of our international businesses, including shifting our focus to being a services business. I will explain the key strategies and major initiatives for the new medium-term management plan ending our fiscal 2025.

In this medium-term management plan, we have set four key strategies to realize Fujitsu's ideal state for 2025 and maximize the value provided to stakeholders, while also looking to our ideal state for 2030 and beyond. First is our business model and portfolio strategy. Second is our customer success and regional strategy. Third is our technology strategy, and fourth is our people strategy or resource strategy. I will explain the activities for each strategy. Firstly, our business model and portfolio strategy. Fujitsu has worked to transform its business model and portfolio. We will change our business segments in fiscal year 2023 to reflect the current business conditions. The Technology Solutions segment that we've conventionally had separates into two categories: Service Solutions and Hardware Solutions. That consists of hardware provision and hardware maintenance businesses.

Service Solutions consists of Global Solutions centered on Fujitsu Uvance and the services business delivered in each region. By simplifying our business structure in this way, we will focus efforts and investments in growth areas and strengthen the management of our business portfolio. I will now explain more about Service Solutions which will drive our company's future growth. This segment consists of on-cloud digital services centered on Fujitsu Uvance and traditional on-premise services. In the three years up to fiscal year 2025, we are targeting an approximately 20% increase in revenue and approximately a twofold increase in the adjusted operating margin. On cloud digital services, we'll increase revenue and profit targeting high-growth profitable business. We are focusing on further expansion of our consulting capabilities, enhancing strategic partner alliances, developing leading-edge technologies for business implementation, and developing our people to provide digital services.

For on-premise services, we aim to increase profitability by improving productivity through delivery, standardization, and expanding modernization that will lead to a shift to the cloud. For these services, we provide a number of infrastructure systems to support our customers' businesses. Across the entire company, we will continue improving quality and strengthen security to ensure the stable operation of customer systems and eliminate unprofitable projects. This is a model for building long-term engagement with customers. To maintain and further improve customer engagement over the long term, we have redefined the business model to build customer relationships according to each stage of the business model. In each of the phases of consulting, delivery, and modernization, we will work closely with our customers to meet their business challenges, continuously provide optimal solutions, and provide long-term support for them to realize DX, including modernization and cloud shift.

We will enhance customer engagement by connecting these three assets, which have tended to be fragmented in the past. In the current medium-term management plan, we will enhance our approach to consulting to provide effective solutions that are more appropriate to our customers' needs. I will now explain the second of our key strategies, which is the customer success and regional strategy. Enhancement of consulting. Through management challenges of customers and to social challenges related to customer business, we will be facing together with the customers and to strengthen consulting to propose solutions through digital technology led by horizontal domain of Fujitsu Uvance and the technology consulting and Fujitsu Uvance, a vertical domain business managing related business consulting. From both of them, we will be supporting customers and to provide support to achieve what they aspire to be.

We will be implementing reskilling. By FY 2025, we are trying to increase the number of consulting skill headcount to 10,000 people with technology and business combined. Next is modernization business.

Kunihiko Nomoto
Head of Public and Investor Relations Division, Fujitsu

We are succeeding the existing assets of customers. From both the technology and business, we will be working on consulting capabilities. Through mainframe and core systems configuration, we have developed engineering capabilities for a long time and we have a global delivery structure with the organization of dedicated staff for modernization. We will be proposing optimal solutions by leveraging our unique strength. We will be demonstrating grand design for the future ideal state a nd we will be providing the implementation of modernization and visualization of business and assets totally and we will be supporting green transformation, DX, GX a nd optimization of the information system. These are the major efforts by region. We will be aiming at the enhancement of profitability and continue to strengthen service business. In Japan, we will support modernization of customers in all industries originating in Japan to customers who deploy global business.

We will be strengthening structure to provide support and global standardized services. In other regions, centering around Fujitsu Uvance , we will be expanding the provision of global solution and service. Fujitsu Uvance ratio in overseas service revenue will be increasing to 2.3-fold in FY 2025 compared to 22% to 45% and to accelerate the transformation quality of overseas business. We will also enhance the alliance with strategic partners. With Microsoft as the only global SI partner domestically, we will strengthen strategic partnership. With AWS, we will be starting from collaboration in industries with strengths. We will aid in offering development and talent development and we will expand to company-wide collaboration. With SAP, ERP data provided by SAP and RISE with SAP, which is offering a processor cloud migration.

We will be basing on practicing this internally and to the aids as a global technology partner to expand business. With ServiceNow, we have concluded enterprise training agreement and toward the acquisition and the strengthening of the ServiceNow related skills. All the employees will be able to receive education unlimitedly and we have introduced systems to challenge on the acquisition of qualification. Within FY 2023, the number of ServiceNow certification holder to be expanded to over 10,000. Furthermore, we became the recipient of a Worldwide Elite Segment Partner of the Year 2023. We will be strengthening business expansion globally even further. With Salesforce, we will be starting from the joint solution development in manufacturing in the healthcare areas and we will try to expand business and to strengthen further alliance.

As the points that were to relate to all our business activities and to have stability in a customer business, I will be speaking about our efforts. In system troubles and security incidents, we are causing inconvenience and concerns. Once again, I would like to take this opportunity to express my apologies. Once again, we will be strengthening company-wide governance, strengthening the information security and we will be improving the quality of system as the three pillars. We will be implementing them with speed and to measured effect and we will have the permanent measures to improve management. Next, I will come to the third point of the focus strategy, which is technology strategy. As the key technologies to support Fujitsu Uvance , we identified five items, computing, network, AI, data and security and Converging Technologies. We are conducting research and development with a focus.

Going forward, by having AI as a core, we will be strengthening five core technologies. We will be implementing in business as added values. Innovation through technology will be changed to added values. I would like to cite the examples to deliver our efforts to customers and society. The one on the left is the combination of AI and key technology. One of the example of R&D and demonstration project to deliver greater value. The top left represents the combination with computing. The company is working together with the Tokyo Institute of Technology, Tohoku University and RIKEN. We have started the development of learning methods to enhance performance of large-scale deep learning represented by ChatGPT. We will be contributing to the enhancement of our research capability of AI, which can be used by companies and academia. The bottom left is the combination with Converging.

We will be able to reproduce to predict the change in the behaviors of people and to make it verifiable as the technology of a Digital Rehearsal technology. In the Isle of Wight in the UK, this technology is used for the operation of shared e-scooter and it is used for the verification of measure to enhance the convenience of the users and the reduction of CO2 emission. The one on the right is an example of a value provision model originating from technology. As we announced the other day, the advanced AI technology can be tried with the application to the new business by using the elemental technology of Web3 and the Fujitsu Kozuchi AI platform.

Web3 Acceleration Platform will be the center to combine with the other companies' technology and OSS. This will be implemented in hybrid IT, which is one of the horizontal area of Fujitsu Uvance. With this application and the services of the vertical area of Fujitsu Uvance, can be combined. By providing this as the offering, we will be implementing society, implementation with the customers. Next is the resource strategy, the fourth focus. We will be achieving globally for all the talent portfolio aligned with the business. We will define job role, which will be consistent globally. We will visualize a human resource portfolio and we will be promoting a talent planning globally. Reskilling and upskilling will be implemented to enhance the resources in growth area. We will continue to enhance productivity and to strengthen management foundation.

With talent and digital technology, we will be enhancing the management foundation supporting business. Human resources and as a human resource management, as a part of the effort for achieving the talent portfolio along with the business portfolio, we will be implementing measures to focus more on autonomy by focusing on career development. For digital technology, centering around the One Fujitsu program, we will be promoting the strengthening of the data-driven management. Based on the experiences and know-how acquired internally, we will be delivering to customers as values. We have the similar kind of agenda as many of the companies do. Our practices can be offered as references to customers so that we can promote the DX as an entire society. This concludes the explanation for our focus strategies. I would like to touch upon the corporate goals for FY 2025.

The details will be covered by our CFO, Isobe, later on. This is the financial target for FY 2025. Revenue is JPY 4.2 trillion, adjusted operating income is for JPY 500 billion with the adjusted operating margin of 12% are our targets. As the driver for growth, Fujitsu Uvance is set, we will be targeting for the profitability enhancement in the service solution. A cash generation capability, Core Free Cash Flow will be JPY 300 billion. For the capital efficiency, EPS CAGR will be set from 14%-60% as our target. To enhance the enterprise value, I would like to talk about the financial strategy. We will be focusing on the concentration to service solution to accelerate cash generation speed.

To do that, we will be focusing on four focus strategies. We will do the optimum allocation by continuing investment on growth. In the previous midterm management plan, we were able to create a Base Cash Flow of JPY 650 billion on 3-year basis. In the next 3 years, we are targeting for JPY 1.3 trillion, which will be double that amount. Lastly, I will talk about non-financial targets for FY 2025. Environment, customers, productivity a nd talent. In these four areas, we have set KPIs and we will be addressing to achieve them. As the KPI in environment, GHG reduction amount compared with FY 2020. In Scope 1 and 2, Fujitsu Group will reduce 50%. In Scope 3, in supply chain, we will be targeting for the reduction of 12.5%.

With respect to customers, we will continue customer Net Promoter Score. The conventional KPI will be continued and we will be aiming at the increase by 20 points compared to 2022. For productivity, operating income per employee, we will be aiming for +40% versus FY 2022. In talent, the traditional KPI employee engagement will be continued a nd we will be targeting for the achievement of the global score 75. As the indicator for diversity leadership, the female representation globally will be set as KPI. From 14% in FY 2022, we will be targeting to expand to 20% in FY 2025. In 2030, we will be targeting for the achievement of 30% and this is back-casted to determine this figure.

Furthermore, the efforts in non-financial area, how much it would contribute to financial area, will be analyzed quantitatively.

Takahito Tokita
Representative Director and CEO, Fujitsu

For both the financial and non-financial areas that we will be targeting to achieve our targets. Fujitsu has already specified the purpose and we have been promoting various types of transformation in order to achieve them. Over three years up to 2022, business organizational structure HR system, internal system and to the mindset of employees and to corporate cultures, we have seen tremendous change. Along with the new midterm management plan, we will be promoting transformation and we feel that we are ready to deliver the change. This time we have specified new vision and materiality.

Toward the 2030, Fujitsu will try to solve global environment issues, toward the future where people and nature can coexist and the development of digital society, where stability and prosperity of the world can be achieved and enhancement of people's wellbeing, by formulating the life foundation, which is human-centric and we will be concentrating our management resources to these three materiality. In order to build the stronger foundation as sustainable company, we will be delivering this Medium-Term Management Plan. With this, I would like to conclude my explanation. Thank you very much for your attention. Next, Isobe will be making his presentation. CFO Isobe , the floor is yours. Now let me explain the financial plan under the Medium-Term Management Plan.

Before discussing the financial plan, however, I would like to provide some supplemental information on the changes to our business segments. First, I will present an overview of changes to the segment. CEO Tokita touched on this, so I'll go over just the main points. The major change is that existing Technology Solutions are divided into two categories, Service Solutions and Hardware Solutions. In the previous Technology Solutions segment, the hardware sales and hardware maintenance services that have been a part of the solution services and international regions, excluding Japan sub-sub-segments are separated out to create the new Service Solutions segment.

By separating out all hardware including hardware sales conducted by sales companies such as Fujitsu Japan, as well as the hardware maintenance services that have been included in the previous solutions and services segment the new service solution segment will just include systems integration and other services businesses. There will be three under this. The first is Global Solutions which will create and provide uniform global value delivery business, centered on Fujitsu Uvance. It is the cornerstone of our business portfolio transformation and is positioned as a driver of growth in our medium-term management plan. Second segments are the regions. These businesses provide services depending on the region and location of the customer. Please note that Uvance implementation is also included in the regions. Regions are divided into Japan and overseas according to major market segments.

The Japan region is a business backed by a strong customer base. This region is positioned as a cash cow in the current business portfolio and Fujitsu's business in this area will continue to play a leading role in digitalization and modernization of Japan. In this business, we aim to further improve profitability through steady business growth and enhanced delivery. In the overseas regions, there are still many issues to be resolved. During this medium term management plan period, we will move forward to ensure a shift in our business structure by implementing a uniform global strategy. The Service Solutions segment consists of the three sub-segments I just described. The other new segment is Hardware Solutions.

It includes hardware sales and hardware maintenance business that have been part of the previous Service Solutions in international regions, excluding Japan sub-segments, and consolidates those business with the previous Hardware Solutions as a segment, creating a segment focused solely on hardware business. Eliminations corporate includes the common part of the previous Technology Solutions segment, as well as research laboratories and company-wide research and development activities that do not belong to any individual segment, and also company-wide DX investments. The following page show these segment changes. Since I just explained this, I will omit further explanation. The following page is a reclassification table of revenue and operating income. The old segments are on the left hand side of the page, and reclassification amounts are on the right, and the new segments are next to the amounts. I will do away with the details.

That concludes the overview of the segment changes. Next, I would like to discuss the financial plan. First, I would like to present the highlights of the consolidated financial plan revenue, Adjusted Operating Profit and Core Free Cash Flow. The period within the dotted line box is the period of this Midterm Management Plan. The term Adjusted Operating Profit is being used from now on, but this is the same as the previous term we called operating profit, excluding special items and restructuring. It is operating profit excluding one-time gains and losses from business restructuring, M&A, and institutional changes. It represents the recurring profit from the business. In fiscal 2025, the final year of the current Midterm Management Plan, sales revenue is projected to be JPY 4.2 trillion. Adjusted Operating Profit is targeted at JPY 500 billion.

Operating profit margin is projected at 12%. Absolute value of profits is projected to be approximately 1.5 times that of fiscal 2022. Core Free Cash Flow generated by this business growth in fiscal year 2025 is projected to be JPY 300 billion. There was a negative impact on cash flow in fiscal year 2022, mainly due to an increase in inventories resulting from advanced procurement of parts and materials. By addressing these current issues, we plan to double our ability to generate cash flow compared to fiscal 2022. The following pages describe the characteristics of each segment and new segment. Let me briefly explain.

At the top, are the consolidated totals, the figures I mentioned earlier, with Adjusted Operating Profit for fiscal 2025 projected to be JPY 500 billion, an increase of approximately JPY 180 billion from fiscal year 2022. The drivers that support this growth are in particular the revenue and profit from Service Solutions. Sales revenue in fiscal 2025 is projected to be JPY 2.4 trillion, representing an average annual increase from fiscal year 2022 of 6.5%. Adjusted Operating Profit is projected to be JPY 360 billion, 2.2 times higher than in fiscal year 2022. We aim to achieve an operating profit margin of 15%. Let me supplement information for each sub-segment. First Global Solutions.

This business is a driver for the growth of the service businesses and cornerstone of our portfolio transformation. Sales revenue is expected to expand significantly by developing value delivering businesses centered on Uvance. As we are currently in the upfront investment phase the Adjusted Operating Profit margin is very low at about 1%. Uvance's entire lineup will be available in 2023, however, sales revenue therefore is expected to expand significantly as the business develops. We aim to achieve a 10% profit margin in fiscal year 2025. The next region Japan is a cash cow backed by a strong customer base. We will further improve profitability. Sales revenue growth is expected to average just under 7% Fujitsu will continue to play a leading role in Japan's digitization and modernization through its business in the region.

In terms of profits in addition to steadily expanding businesses with healthy margins, we will continuously improve profitability by pursuing more sophisticated delivery. We aim to achieve an Adjusted Operating Profit margin of 19% in fiscal year 2025. We plan to transform the business structure of overseas region over the medium term. By achieving a transformation in business portfolio through a uniform global strategy, we will firmly establish the starting point for sound growth.

Kunihiko Nomoto
Head of Public and Investor Relations Division, Fujitsu

The next page shows the other segments. Our plan calls for us to ensure that the Hardware Ubiquitous and device solutions segments maintain the same level of profit as fiscal 2022. At the bottom of table, we plan to increase our investment in business growth. Although we expect to see decline in approximately JPY 20 billion in earnings from elimination and corporate. We will expand growth investments in advanced R&D centered on AI and our internal digital transformation for data-driven management. This page summarizes our plans to expand operating profit in Service Solutions, which is our growth driver. The leftmost figure is the Adjusted Operating Profit from fiscal 2022, which is the starting for the changes we are projecting through fiscal 2025. One is the increase in revenue and average growth rate over the 3-year period projected to be 6.5%.

The higher gross margin above we projected to be JPY 150 billion in higher operating profit increases largely from expansion of Uvance, which has generated revenue of approximately JPY 200 billion in fiscal 2022. Fiscal 2025, we aim to increase the sales to several hundred billion JPY or 30% of total revenue in Service Solutions segment. The next item is approximately JPY 80 billion in higher operating profit due to improved profitability. In addition to improving the gross margin by more than 1% per annum, we will improve profitability by developing value delivering business such as Uvance. Number three is as a result of the expansion of investments for business growth, operating profit expected to decline by JPY 30 billion. We will expand our investment, focusing on the development of Uvance offering and human resources.

As a result of these efforts, we aim to achieve Adjusted Operating Income of JPY 350 billion in fiscal 2025. Next is our financial strategy, the plan for capital allocation. We will be trying to optimize our capital allocation with the aim of consistently expanding our corporate value. First of all the Base Cash Flow, which is the source of the capital to be allocated, projected to greatly expand. Under the previous capital allocation policy the total capital allocation for the 5-year from fiscal 2022 was over JPY 1 trillion up to fiscal 2024.

Over a 3 period, we are planning for a Base Cash Flow over JPY 1.3 trillion which is going to be a significant increase from the previous year. This figure is in comparison with the 3-year actual from 2020 to 2022. This will be the scale over 2 times. In addition to the expansion of our cash flow by the growth of business we are also expecting to have the improvement of working capital efficiency and the cash from the sale of non-core asset. The allocation is on the right-hand side. JPY 700 billion for business growth investment and a shareholders return of JPY 600 billion as a balance. We will be leading to further sustainable growth in business.

These will include organic growth investment and the further transformation business transformation risk related fund. On the other hand a shareholder return is an important allocation to enhance our corporate value and we will be expanding greatly by looking at the capital efficiency and the financial foundation. These are related to shareholders' returns. There's no change from our plan. For dividend, we will be responding to a growth of the profit and we will be continuing to have the increase in dividend steadily and stably. We have seven-year consecutive years of increase in dividend up to last year and we will try to do so over the next three years. We will also be flexible and agile by looking at the situation in the share buyback.

Uh, already, uh, in twenty-twenty-two, we have conducted a share buyback of, uh, one hundred and fifty billion yen. Uh, in the next midterm business plan after twenty-twenty-three, we were expanding a cash flow, and, uh, we are also planning, uh, to have the similar level of, uh, share buyback. As a result, uh, in terms of the return, uh, in total from, uh, twenty-twenty to twenty-twenty-two, the total amount, uh, was three hundred and fifty billion yen. And there will be tremendous increase to six hundred a billion, a scale, uh, from the three years, uh, starting from twenty-twenty-three. Uh, with the background of the increase in cash flow generation capability and the profit from the sustainable business growth, uh, we will be achieving a improvement of our capital efficiency and a strong financial foundation.

On the slide we have the image of JPY 200 billion but we will be flexible in financing and also in the share buyback so there could be possible or increase or decrease. This is just to simply is to show the overall allocation policy over the three-year period. The last slide is the summary of what I explained so far, which is a summary of financial KPI. With the strengthening of a business growth and the profitability Adjusted Operating Income in FY 2025 will be set as JPY 500 billion. The driver for that will be Service Solutions. Adjusted Operating Income will be JPY 360 billion, and the margin will be 15%.

The middle is a cash. With the improvement of the working capital efficiency we will be strengthening cash flow generation capability. Cash core cash flow of FY 2025 will be double or that of FY 2022 to increase to JPY 300 billion. The one at the bottom is our capital efficiency. By allocating the expanded cash flow, EPS in comparison with the FY 2022 will be targeted at a 16% on average from 14%. RORAC is also considered as an important indicator. Our important target on the midterm basis will be ROIC of 15%. These are the financial plans. Even after FY 2023, in order to achieve the sustainable improvement of the corporate value, we will be committed. That concludes my explanation.

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