FUJ00116684
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[DateTime]
UK & Ireland Region
PSD Review Pack
May 2009
© Fujtsu Services 2008
Guidelines:
This pack will supplement the Division Review pack as defined by finance and will be provided by each Division at the Monthly
Review with the CEO and CFO. There are guidance notes accompanying each slide in this pack. In addition to those guidelines,
the following criteria also applies:
The pack is intended to capture exceptions (ie three bullets points per slide) other than when a finance schedule is inserted
Packs (this one and the finance one) MUST be submitted a full 24 hours before the review.
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Backlog analysis
FOO pps
[Gane Rev Budget 650
In Year Rev from Tov
'BBackiog rom 9/10 TOV, 594
600 I \aRev From Backlog
526
500
& 400
2
g
2
3 300
. [
200
100 I
L
FY08/09 FYO9/10 FY10/11
rev Services Ee Tar
ProjectGhurn 174 153
Total 508 600
Revenue [Backlog 318 Bal 308 (107 + 112 from 9110 orders)
in Year from TOV 207 259, 347 to meet budget
Total 526 530.
FB Rates Serene 3508 -
Excluding FTS
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Management Summary
+ April results
3.8m, being slippages in CCN’s with PO and
lipping
Budget at £30.6m, being £4.2m/
milestone slip on Transformation and!
* Operating Profit £0.2m better at
higher transformation costs on
+ Initial Observations
+ Eating Order Backlog — Business is declining and revenue from
backlog falling year on year
+ Problem Contracts — HNGx delivery plan and:
+ Major Customer Relations challenges — FS main concern
sitives — [1 improving, down select on {
scrubbed and looks good, quality of Management team
+ Sales Organisation needs investment
+ Staff Retention issue — team needs lifting
TO Faiten Sevices 2008
Fujitsu
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Immediate Priorities
+ Full commitment to Orders target — build plan to deliver growth
+ Maximise Revenue — current view £594m, (plus FTS at £121) being
£271m from backlog and £259 from new business, giving a gap of
£64m, £30m of which i:
* Profit delivery plan — major challenge. BU outlook £20m, PSD view
£40m but still with high risk
+ FTS revenues of £121m and Profit of £9.4m taken at face value in
this forecast — need to verify and confirm.
+ Get underneath HNGx and fully understand delivery and integration
issues
+ Ensure stabilisation of !
and delivery to revised plan
+ Rigorous review of PSD opex base and structure
+ Complete review of sales team and strengthen as appropriate
+ Stability of forecasts across all BU’s — need to reduce volatility
2B Rite Serices 2008
Fujitsu
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Operating Profit Track — May Forecast
+ May Forecast profit is £40m, £37m below the Q2 Restated budget including
FTS. (BU roll up gave a profit of £19.4m.). Forecast still contains
considerable risk es; ecially around cost assumptions in HNGx which have
still to be reviewed. Net risk is circa £30m.
* Original budget contained a task of £20m which was not owned or allocated
to sub BU’s.
10.8m from Transformation slippages,
from HNGx programme slippages
have taken a £5m profit task to be delivered by additional 3°
ost removal, aggressive cost reduction programmes
£77m
£(11)m
£(7)m
£(4)m
udget Task £(20)m
+ May Forecast Task £5m
+ Total £40m
5B Raitan Savvis B08
Fujitsu
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Key Numbers 09/10
Key Numbers tm
a @ Fy 2000770
Private Sector May I @ I Ot dpa, Way I @2 ) Ot pay, Nay) a2 pro ve
Forecast Budget Budget IPTF Y**"! I ForecastI Budget I Budget POT Y**"! I Forecast Budget I Budget Prior YearI
[orders Received ][[ sa) ts05] 1058] 1008] [100s] 70a] 22] v0a][ e000 e000) 000] sv]
[Feckiop I [etseo) taser] szeat] tat0s] [raaos]stseo] tasea] savas] [ tarsa)saera] aera] taza]
Frota Revenue ‘aaa tai) 1130) 1362] [ tao] t0sa) tava] 1902] [es10 Tra) soar] saa
Revenue Growth % eee I wsxII 2am 366 t3%I om
warsin os 176122) tar] I ta) 07 tsoII 7941185, 966) 0a
hangin 2 1% mt) ef] om, 12% wxI] 12% 0% 10% 11%
Net gnneral and cin aa aa, gal as] a] aj] 3613630] 37
Develarment Opex 00 00, +00, oof! 0,00, ~~ oh =, Soy
Grave Charges 00 00, +00, + ast = 00, -~S on), oo-~S sof © 00S, coI_—st
Bie Costs 2525, 2sI a 13) 19, t9] a7] ate, we] a
Sales & Marketing Opex a4 34, 2a] a5, 35, 2a, taff 99,139, oaI___7I
[Spex 3 ea 8a aa a7 ars tral neta
lover % 7% 7m! tome] ox] sees] I ore! sre] eons
Rationalisation 1329, 2a, 14) 01) os], oof] aa 0, tot
lon prot Assoc 00 00, ~— 00, oat} 00-09, on} = S00,
loperating Prot os 54 ts tal] a0 0970] ark waka
loperating Prt % Se I I
(Permanent Headcount I
INon-Permanent Headcount 5a ot 4 4 ale ‘4 Hi 43
Aprae May-08 Jano
Private Sector a tay [a a Way at
Actual pudget__ Budget [PT ¥*"I I Forecast I Budget I Budget [PM Y*I I Forecast Budget __ Budget _IPrOr YearI
Revenue a I or
loperating profit en ex _@a]__@nfI_@oI__20I en) sll _an 50, as) 58
SB Falter Sevices 2008
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Delivery Plan and Key Dependencies
Private Sector a a @ a Full Yew 2ttat0
Risks) and Opportunies Orders I Rev [Op Profi] Orders I Rev [OpProft] Orders I Rev [Op Profi] Orders [Rev [Op.ProftI Gries I Rev [Op Pt
contacted ising Business] 57 I 734 I (18H I 08 I ot I (sy I o7 I oe I (ies I M2 I ons I (a) I tea I md I 64a
[Chum on Current business 38 120 16 a6 13 u a oi) 2D 106 15 ra) ot oy BB
INew Business -current accounts 184 65 12 1835, 2 48 1986 B2 ity 1065 a7 128 MGT I 1203 BI
hew Business ames newaks I (04) mo I M5) wo I m7 I a6 I m5 I 5 I 64 I tm I ser I tno
costreducton plans I I ar I om I ta I a5 I oa I a2 I as I oe I t5 I os I ts I se I tte
Rater Plans (12) (13) (08) (33)
judgement (4) I ty I te I (ters) I og I at I at or 15 I 30 I (6) I 136 I (iat) I Ma) I 2B
ls-mrrasTrucrUREswles ] 49 I 40 I of I so I 0 I a2 I 15 I 75 I 03 I 3] 19 I om I me I wa I to
Irs ur I wr I as I I ms I 2 I ea I ma I tr I wae I oz I oe I soo I me I as
HQ. ck) 20 Lt (1.9) ry
latest Forecast ayForecas I 012 I tau I (aay I tons I uso I a0 I 264s I area I to2 I 1955 I ame I vas I ano I eto I a0
(aBuige tos I m7 I aa I ras I 1058 I toa [ was I wee I ze I ames I ass I cua I ooo I mas I 779
7 ain Seovees B08
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Risks & Opportunities
I(Risks) and Opportunities orders IRevenue OMSTat"GI cash I Orders cash I orders {Revenue OPS*=ti°g I cash]
[rotai Gpportuniti = a7 Tal FEI EK] Tz] RE) aT a7] 2505] BE PAE 2o5]
—
Irrelevant I ee
[Net Risks & Opportunities or, oa) a] 29) cx 77 ae) Gs) B54] 258) B03)) (40.3)]
SB Falter Sevices 2008
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Sales Update
Top 20 Sales Opportunities - 2009/10
I Irrelevant
EAA ee Ai Oca el eld cad cad nd cL
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Major Account Summary — Q1
Account Qt -May Ficast Q1-Q2 Budget Qt - Prior Year 2008/09
Ee a} oa el Tose a 34] a,
Irrelevant); {I I” Sed oat) ee ae
ToS Rian Services BOR
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Account Latest Forecast (May Forecast) Q2 Budget Prior Year 2008/09
fer ‘Orders I Revenue ow om, ‘Orders I Revenue OM omy, ‘Orders Revenue: om ous
Irrelevant I} 2) 3) 3) S)) 2: ol al Soon
Hi 85: 20: 59 5.0%) 5. 201 5 184] 12.9] 47 437%
i 3] oe { 3 i ce 34 ect I
i 201 1201 sss] ree] » 201 8 re 20"
rotar * nL Ze: Acs, ML re] [sara 8 so
Irrelevant
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Operational Performance — Alert Status
Irrelevant
cremweingerer na
* Post Office (HNGX)
* End to end programme plan review planned for the 27" May
+ Programme delivery team strengthened with PMO function, Test
Manager and end to end programme lead.
* 12 milestones agreed with customer for May, weekly progress
reporting in place, 7 achieved to date one milestone missed
FSB Rian Services BOR
PUjtTsu
Irrelevant
Irrelevant
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Programme Update 2
Irrelevan
f Irrelevant
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Organisation & People
* Current Issues
* PSD BU organisation structure
« PSD costs — people/Core/accommodation
* Revised Phase 3 rationalisation approval required; 23
people identified; £1.565m Ratex
team
* Key Resource Requirements
* Sales Director - PSD
* Sales Force — incremental 6 sales people required
¢ Talent Management Update — nothing to report
« Integration and utilisation of Declan Kelly’s FTS sales/bid
* Succession Planning — see PSD BU org structure above
TFB Raitan Services B08
Fujitsu
Guidelines: exception based reporting eg rationalisation programme, critical resource for big win etc. Provide an update on the
status of your Talent Management and succession planning.
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Headcount
‘Irrelevant: ;
Irrelevant ‘ : :
18 “GFujisu Sewices 2008
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Ratex Tracker
Private Sector
Heads Payback I Approval
impacted I YE2" Cost) ImpactDate I UT ts Further Info
NB. All payback period data is an average of the
Programme individual's pay back time for each programme
PSD-RRMT 50 340] 19th June tyear jin progress
{ 50 280I 19th June ‘year in progress
90 494{ 19th June ‘months lin progress
30 132) 19th June '5 months. Iin progress
10 280] 1th June ‘18mths {in progress
er 40
IRRMT BU SPECIFIC:
: 40 Soh September Comactual:Ralex for .c¢ Termination
i 100 Core
Royal Nal 20 200/30th September _Reskiling
lot shoring incl Royal ma 1483
To be identified ° Further review ofthe consolidated PSD structure
Total
al Ye Ratex in Latest FC
io Brian Services BOR
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