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FUJITSU
shaping tomorrow with you
Business Update
Roger Gilbert
CEO Fujitsu, UK & Ireland
10" February 2011
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Our Strategy (recap) FUJITSU
« Protect and strengthen our core Infrastructure Services
business
= Rebalance our business across Public and Private Sectors
from 64%:36% in FYO9 approaching 50%:50% in FY 13/14
« Increase the contribution of Applications, Networks and
Products to our overall business from 25% to 35%
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Increase the number of £30m+ accounts... — rufirsu_
... because these are profitable, stable sources of long term income
16
[I Private Sector [J Government
14
No. of £30m+ Accounts
FY10 FY11 FY12 FY13
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Rebalance our business FUJITSU
Grow our Private Sector - aS
1200 I i AD
business at pace ...
@ ROI
1000
PSD
mRBSG - £147m aun I a =
@ Shell - £82m 600
BAIG - £33m 400
=Boots - £25m
200
Total Private Sector Orders (£m)
o
FY09 (Act) FY10(Q3RF) FY11 FY12 FY13
{I Government [Mj Private Sector
100% — =r a). eo
... to reduce our dependence
on Government
25%
% Split of business by revenue
o
FY09 (Act) FY10 (Q3RF) FY11 FY12 FY13
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Balancing our business mix FUJITSU
160%
140% I FY11
WFY12
120% I —Eya3
100%
Our Applications,
Networks and Product
businesses will grow...
80%
60%
40%
0% I gpg mm)
Infrastructure Applications Networks Product
Networks
3%
Applications
10%
Cumulative Revenue Growth
Networks
al
Applications
14%
... to increase their
contribution to our preaicn
. 12%
business. :
Product
14%
FY10 FY13
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The Headlines FUJITSU
™ Government sector is not a good place to be this year
@ Exceptional Sales growth in the Private Sector
@ Excellent progress by the Horizontal Divisions
@ Cloud and other investments
@ Ireland: Success under tough market conditions
@ Delivery performance
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Government Cuts FUJITSU
™@ Fujitsu's shares plunge in Tokyo after slashing full year profit
forecast
The shares fell 9.4 percent to 494 yen on the Tokyo Stock
Exchange, the biggest intraday decline since January 2009.
“Fiscal tightening among European governments, particularly the
UK, which Fujitsu is highly exposed to along with generally weak
IT spending environment at home leaves its next term’s earnings
outlook with more negative surprises”
Amir Anvarzadeh, BGC Partners Asian equity sales team, London,
28" January 2011 after Fujitsu reported earnings.
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Competitors
@ Capita
m FY10 revenue down 10%
@ Capgemini
® Q3 sales down 26% in UK public sector
@ Logica
™ Q3 UK revenue down 11% year-on-year
@ Atos Origin
™ Q3 UK revenue down 8% year-on-year
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Two factors FUJITSU
® Government Memorandum of Understanding
m= Government have insisted that we reduce our billings in FY10/11 by
£46M
™ Impact on profit: £20M to £30M
@ Moratorium on New Contracts and Commitments
@ All contracts and extensions over £1M (now £5M) require central
approval
m= December YTD Sales in Government: £300M (2009: £785M)
@ Impact on profit: circa £30M
@ However — one or two slip through:
NI Court Service w IT Outsource £26m
HMRC @) EM Revenue Desktop Refresh £11m
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The Headlines puts.
m@ Government sector is not a good place to be this year
m@ Exceptional Sales growth in the Private Sector
m@ Excellent progress by the Horizontal Divisions
@ Cloud and other investments
m@ Ireland: Success under tough market conditions
m@ Delivery performance
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Private Sector Sales FUJITSU
Major Wins Year to Date New Client
RBS %£RBS Virtual Desktop Service £147m
Shell ~@ _ Distributed Support £82m
Centrica centrica Desktop Managed Service £77m
AIG Europe AIG Infrastructure solution £33m
Boots & Store Maintenance £25m
BAT ee Global Service Desk £13m
Lexmark Lexmyrk —_—-IT Support £8m
Kentucky Fried Chicken eal Support and Maintenance £7m
PSD Sales: December Year to Date: £519M (2009: £180M)
Win Rate on Competitive Opportunities
Win Rate — Value 21% 35%
Win Rate — No. Deals 38% 39%
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The Headlines pafitsu
m@ Government sector is not a good place to be this year
m Exceptional Sales growth in the Private Sector
™ Excellent progress by the Horizontal Divisions
@ Cloud and other investments
m@ Ireland: Success under tough market conditions
m@ Delivery performance
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Network Solutions Division FUJITSU
™ There are strong synergies between FTEL’s capability and the
access to the market provided by the UK and Ireland Region
m@ The two companies have worked together over the last 12
months and have demonstrated the potential for growth
® Moving towards full integration with FTEL
@ Sales — Wins and preferred supplier negotiations
™ BAA (£12M)
@ Ford (£10M)
= M&B Network Tower (£20M)
@ Global WAN and 3rd Party spend initiatives
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Technology Solutions Division FUJITSU
@ Fujitsu First
m@ PRIMERGY — 5% market share by FY13/14
@ ETERNUS
1% FUJITSU RESTRICTED - UK & IRELAND EYES ONLY
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Applications Division FUJITSU
™ Market awareness with increased press and analyst coverage
@ New propositions and campaigns
@ New client acquisition with specialist application sales
capability
@ Exploiting partner channels
orAcLe PTY Microsoft:
®@ Application Cloud Service
® Independent Software Vendors
= Consulting
= Migration & Development
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The Headlines
m@ Government sector is not 5 good place to be this year
m Exceptional Sales growth in the Private Sector
m@ Excellent progress by the Horizontal Divisions
® Cloud and other investments
m@ Ireland: Success under tough market conditions
m@ Delivery performance
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Investment FUJITSU
@ Within the UK&l Mid Term Plan (MTP) we have investments of
£114M for major programmes including:
m= Cloud
® Applications
= Dynamic Infrastructure Services
@ Fujitsu Limited and Global Business Group (GBG) are
supporting growth:
® Dynamic Infrastructure Services — Develop our global leadership
* Mobile Professional
* Virtualised Client
* TRIOLE for Service
* Global WAN
= Cloud
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The Headlines Fujitsu
m The Government sector is not a good place to be this }
year
m Exceptional Sales growth in the Private Sector
m@ Excellent progress by the Horizontal Divisions
™ Cloud and other investments
@ Ireland: Success under tough market conditions
m@ Delivery performance
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The Headlines
m The Government sector is not a good place to be this
year
m Exceptional Sales growth in the Private Sector
m@ Excellent progress by the Horizontal Divisions
™ Cloud and other investments
™@ Ireland: Success under tough market conditions
@ Delivery performance
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Delivery FUJITSU
™ Some good progress in resolving problem accounts
m HNG-X
=m FSA
= PwC
@ Gold Teams and Delivery Assurance have helped but need
strengthening
@ But we still have delivery issues
= DWP
@ We need to take urgent action
= Technical Governance
® Due Diligence
™® Resource Planning
® Reporting
m® Review Structure
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The Numbers
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(i Last Year’s MTP [I This MTP
2500
2000
1500
1000
Revenue £m
500
FY09 (Act) FY10 FY11 FY12 FY13
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Key numbers — FY10/11 FUJITSU
Orders 1078 512 1,590 1,815
Backlog 4,713 147 4,860 5,068
Revenue 1,308 358 1,666 1,750
Gross Margin 17.0% 23.2% 18.3% 20.5%
Operating Profit 40 28 68 119
Profit Before Tax 32 13 45 100
Free Cash Flow (55) (27) (82) (37)
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Key Numbers — FY11
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FUJITSU
Orders 1,590 1,892
Backlog 4,860 4,975
Revenue 1,666 1,788
Gross Margin 18.3% 18.7%
Operating Profit 68 74
Profit Before Tax 45 4
Free Cash Flow (82) (83)
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Focus for the rest of Q4 FUJITSU
®@ Successfully close significant sales campaigns:
@ Increase pipeline building and external revenue focus in
Applications, Technology Solutions and Network Solutions
Divisions
@ Drive Fujitsu First programme for PRIMERGY and
ETERNUS products
@ Improve our performance on major transition and
transformation programmes
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shaping tomorrow with you