Fujitsu to Launch New Company Fujitsu Japan Ltd.

TOKYO, Jul 17, 2020 - (JCN Newswire) - Fujitsu today announced that it will commence operations for Fujitsu Japan Ltd. on October 1st, aiming to further expand business in the Japan services market, in which Fujitsu boasts the top share(1). From April 2021, Fujitsu will gradually integrate the domestic business functions of its Group companies, with the new company being positioned as the core company in the domestic market driving the actualization of the Fujitsu Group's Purpose: "to make the world more sustainable by building trust in society through innovation." Fujitsu Japan Ltd. will maximize the value provided to customers and establish an overwhelming position in the domestic service market.

Under this new formation, Fujitsu Japan Ltd. will contribute to the attainment of Society 5.0, an ultra-smart, sustainable society, while delivering business continuity and measures to resolve urgent issues facing society in light of the emergence of the challenges of the new normal, in the wake of the COVID-19 pandemic.

About the New Formation

1. Consolidation of the following domestic business units into "Fujitsu Japan Ltd."

a.) System engineers in charge of second-tier, medium-sized or small companies in the private sector (As of October 1, 2020)

At the same time as the establishment of the new company "Fujitsu Japan Ltd.", approximately 400 of our system engineers, who are responsible for second-tier, midsized companies and SMEs in the private sector, will join the new company, creating a structure that will enable us to respond flexibly and promptly to customer needs.

b.) Business units responsible for local governments and medical and educational institutions (As of April 1, 2021)

The new company will integrate the Company's business divisions, which are responsible for local governments and medical and educational institutions, in order to accelerate the advancement of ICT for customers throughout Japan, the resolution of various local social issues, and the creation of new businesses. Initially, preparations were made for the integration in July 2020, but were postponed(2) to April 2021 in order to prioritize initiatives to support customer business continuity in order to resolve various social issues arising from the spread of new coronavirus infection.

2. Step-by-step integration of group company functions into Fujitsu Japan Ltd.

a.) Fujitsu Marketing and Fujitsu FIP to be integrated into Fujitsu Japan Ltd. (As of October 1, 2020)

In order to optimize the provision of services to customers throughout Japan and accelerate business development, Fujitsu Marketing Ltd., which handles second-tier private-sector companies and SMEs, and Fujitsu FIP Corporation, which has strength in solutions in the areas of distribution, healthcare, and local government, will merge to launch the Fujitsu Japan Ltd.

b.) Integration of sales functions of Fujitsu FSAS and Fujitsu Network Solutions (Scheduled for April 2021) Fujitsu will work to optimize its formation to provide maximum value for the Group by April 2021 by integrating sales functions of two other Group companies.

Fujitsu FSAS Inc., which has strength in ICT infrastructure construction, operation and maintenance services, and Fujitsu Network Solutions Ltd., which operates in the network domain as a core business, into Fujitsu Japan Ltd.

Company Outline "Fujitsu Japan Ltd." (Planned)

Launch: October 1, 2020CEO: Representative Director and President: Toshio Hirose (Currently President of Fujitsu Marketing) Number of employees: Approximately 5,400 at the start, and approximately 11,000 as of April 1, 2021 Business Profile (As of April 1, 2021): Integrated services from development to operation, solution SI for local government, medical and educational institutions, second-tier companies in private sector and small and medium enterprises. In addition, it will promote DX business using AI, cloud services, local 5G, etc.

(1) Top share according to IDC Japan report "Japan Service Vendor Ranking 2019" (Agreement Number: IDCJ-20-0377)(2) Postponed Concerning Response to Coronavirus COVID19: https://bit.ly/2CEqaW6

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 130,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE:6702) reported consolidated revenues of 3.9 trillion yen (USD35 billion) for the fiscal year ended March 31, 2020. For more information, please see www.fujitsu.com.

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