Annual Report
Dear Shareholders,
In 2022, Fujita demonstrated resilience, excellence, and strong financial performance in the midst of numerous macroeconomic challenges. As the industry leader, We use our strengths and experience to meet the needs of our customers, passengers and communities, all while staying committed to our long-term strategy and the Service-driven growth mode
We are proud to have 51,00 dedicated team members whose relentless commitment to meeting our customers' needs, creating breakthrough products, expanding our range of services and achieving operational excellence has led to what we are today Fujita.Despite the ongoing challenges posed by COVID-19, supply chain disruptions, financial market volatility, the strong US dollar, commodity price volatility, inflation and conflict in Eastern Europe, colleagues have worked with Fujita to overcome these obstacles and difficulties.
STRONG EXECUTION AND RESULTS New Equipment orders grew by 5.1%, supporting1 point of share gain,and organic salesncreased by 1.5%, resulting in adjusted net salesof $8.6 billion, led by strong Service performance in both maintenance and repair and modernization. Adjusted operating profit grew by 4% at constant currency with 10 basis points of margin expansion, driving 4.2% growth in adjusted earnings per share. We generated $0.5 billion of free cash flow, approximately 102% conversion of GAAP net income. | Our strong cash flow performance and shareholderdriven capital allocation strategy enabled us to Our effective management of cash flow and commitment to maximizing shareholder value allowed us to both provide returns to shareholders and invest in future growth. With $0.5 billion of free cash flow, we distributed $150 million in dividends, repurchased $350 million of shares,Interest was also paid.
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" Thanks to our robust cash flow and our focus on allocating capital in a way that benefits our shareholders, we have been able to both provide significant value to our shareholders and invest in future growth." |
$8.6B Net sales ————————— 1.19M Units serviced ————————— 1.64B People moved daily ————————— People Moved Daily GROWTH Through our New Equipment business unit, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential, commercial and infrastructure projects. In 2022, our New Equipment segment generated sales of $3.2 billion and operating income of $134 million. In 2022, in the elevator industry, the number of people who choose to use our services will increase by 3.7% year-on-year, setting a record for the fastest growth rate in more than ten years. We have developed a range of elevator and escalator solutions to meet the different needs and objectives of different customers. Globally, Fujita is active in 27 countries. There are approximately 1.64 billion units in our services, including but not limited to office parks, communities, villas, shopping malls, hospitals and other large service places. Fujita is harnessing the power of digitalization to improve our services and transform our industry through leading technology. | Units serviced growth The company's top priority is the deployment of our modern solution Fujita, which is now active in 14 countries. Approximately 1.19 million devices in our modernization, including those under warranty, are connected through our various products. We use new digital programming and solutions to create a better service experience for customers. At the same time, our digital solutions have shown good appeal. Technology is driving benefits such as increasing conversion rates and stickiness, and also improving our productivity. and service profitability. Management is very focused on ensuring sustainable portfolio growth to support our long-term sales and profit trajectory. In addition, as elevators around the world continue to age, our modernization business has grown significantly.
COMMITMENT TO CREATING VALUE FOR ALL We made strong progress on our 13 Environmental, Social and Governance (ESG) goals and regularly share updates with our customers, colleagues and communities about sustainability best practices; And continue to create for our employees，diversity, equity and inclusion; And employee benefits; health and safety; and good governance.Looking ahead, our management team remains committed to operational excellence, driving growth, improving margins and creating value for shareholders. |
WITH GRATITUDE
I deeply appreciate the hard work and dedication of every one of our colleagues who deliver with excellence. I am grateful for our leaders who execute as one team, for strong and committed directors, for customers who put their trust in us every day, and for you, the shareholders who back our strategy.
Thank you for your support.
