Notice Concerning Changes to the Capital Structure of Fujitsu Component Limited

In 1995, in order to consolidate and strengthen the electronic component businesses operated across various companies in the Fujitsu Group, Fujitsu Takamisawa Component Limited was created through a joint investment by Fujitsu and Takamisawa Electric Co., Ltd. This integrated Fujitsu’s business units relating to electronic components with Takamisawa’s design and sales units. Subsequently, the structure of the company was altered in 2001 to become the current FCL Group. While it has been a subsidiary of Fujitsu, since 1995, FCL has continued to conduct business activities with the goal of being an electronic component company that contributes to greater value for all its customers, pursuing synergies with Fujitsu while also developing independent business as the company responsible for the Fujitsu Group’s electronic component business. Over the last five years, FCL smoothly expanded its sales and built a foundation for growth, but it has come to the recognition that an ample amount of capital and greater synergy with its extensive customer base, including the Fujitsu Group, is required for further growth. Fujitsu announced in its management direction in October 2015 that, with the advance of IoT, it plans to concentrate management resources in Technology Solutions, where it has a competitive advantage so as to increase its global competitive strength through connected services. At the same time, for its device businesses, including electronic components, it plans to position them as independent businesses, aiming for them to prevail over the competition on their own through product development and business expansion, while still pursuing synergies within the Fujitsu Group. As a result of discussions about FCL’s capital and business planning, conducted based on the two companies’ direction and shared recognition, and upon the premise of FCL’s capital expansion and continued collaboration with Fujitsu, FCL decided to accept an infusion of capital from a company (Founder’s Consultants Holdings Inc.) affiliated with the Longreach Group, an independent investment company. Furthermore, Fujitsu decided to accept an offer from FCL to buy back its own shares of stock from Fujitsu, resulting in equity interests of 25% for Fujitsu and 75% for the Longreach Group. It is hoped that this will lead to a significant enrichment of FCL’s capital, which will ensure a strong financial foundation that will both increase its independence and enhance its ability to grow. At the same time, FCL will continue to pursue synergies within the Fujitsu Group as an affiliated company, including by utilizing its design and manufacturing capabilities for the electronic components that comprise one part of Fujitsu’s IoT solutions. The companies have also determined that by being able to further deepen a worldwide customer base, this will contribute to greater strength in FCL's business foundation. There will be no changes to FCL’s company name, brand, employees, or business structure.

Related Links

Declaration of Opinion regarding the Tender Offer for Our Shares by FC Holdings Godo Kaisha
http://www.fujitsu.com/jp/group/fcl/documents/finance/2018/20180726-1e.pdf (133 KB)

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company, offering a full range of technology products, solutions, and services. Approximately 140,000 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 4.1 trillion yen (US $39 billion) for the fiscal year ended March 31, 2018. For more information, please see http://www.fujitsu.com.

About Fujitsu Component

Fujitsu Component Limited is a leading component company manufacturing and selling Switching Devices such as relays and connectors, and Human Interface Devices such as touch panels, keyboards, thermal printers, server console switches, IP power controllers, wireless modules and electronic appliance equipment. Fujitsu Component Limited (TSE:6719) reported consolidated revenues of 49.4billion yen for the fiscal year ended March 31, 2018. For more information, please see https://www.fujitsu.com/jp/group/fcl/en/.