Fuji Electric : Management Plan for FY2024

Management Plan for FY2024

Fuji Electric Co., Ltd.

April 25, 2024

© Fuji Electric Co., Ltd.

Schedule for Financial Results, Management Plan and

Medium-term Management Plan Briefing

April 25 (Thu.) FY2023 Financial Results Briefing FY2024 Management Plan Briefing

May 23 (Thu.) FY2026 Medium-term Management Plan Briefing (Overview)

May 30 (Thu.) FY2026 Medium-term Management Plan Briefing (Segment explanations)

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Contents

1.	FY2024 Management Plan (YoY Comparison)	P. 4
2.	Reference	P. 17

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1. FY2024 Management Plan

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Operating Environment for FY2024 Management Plan

Opaque political and economic conditions

Market Outlook

Energy

• Consistently strong equipment upgrade demand from renewable energy, internet data center, and semiconductor factory applications
• Modest 2Q recovery seen both in Japan and overseas in ED&C Components business

Industry

Semiconductors

Food and

Beverage

Distribution

• Continuously strong plant system demand
• Recovery in factory automation components seen in Japan and overseas in second half of fiscal year
• Consistently strong demand related to electrified vehicle and renewable energy applications
• Recovery in industrial (factory automation) products seen in second half of fiscal year
• Vending machine demand unchanged year on year
• Conclusion of introduction phases for large-scale orders for store counter fixtures

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Summary of Consolidated Management Plan for FY2024 (YoY Comparison)

Targets of higher sales and profit along with operating profit ratio of more than 9.8%

FY2024 management plan beginning with minimal target

			(Billion yen)
	FY2023	FY2024	Change
	Results	Management Plan
Net Sales	1,103.2	1,114.0		10.8
-18.2*
Operating Profit	106.1	109.0			2.9
-4.1*
Operating Profit	9.6%	9.8 %		0.2%
Ratio
Profit Attributable to	75.4	76.5		1.1
Owners of Parent
			*Exchange rate effect
Financial Indicators
ROE	13.5％	12.3％		-1.2%
ROIC	11.5％	10.6％		-0.8%
Equity Ratio	47.4％	49.3％		1.9%
Net D/E Ratio※	0.2 times	0.2 times		-

※Net D/E ratio: Net interest-bearing debt ÷ Equity

Conservative forecast based on recent foreign exchange rates

	US$	EURO	RMB
FY2024	¥ 140.00	¥150.00	¥19.50
Exchange Rate
Sensitivity of	-60	+130	+300
operating profit to
foreign exchange	Million Yen	Million Yen	Million Yen
influences

• US$ and EURO: Impact of ¥1-fluctuation
  RMB: Impact of 1% fluctuations

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Breakdown of Changes in Operating Results for FY2024

(YoY Comparison)

Higher profit as impacts of higher fixed costs outweighed by benefits of cost reductions as well as increases in sales and production volumes

(Billion Yen)

Increase in sales and	Increase in
production volumes	fixed costs

(15.4)	(▲17.8)	Exchange rate	Others
106.1			effect	109.0
		(+9.4)
		(▲4.1)

		Labor Cost	-10.0		Effect of higher product selling	+3.8
			prices
		R&D	-3.5
			Impacts of rising raw material	-4.4
		Depreciation			prices
		-8.4
		and leases paid		Differences in model mix,
		Other expenses +4.1		profitability between projects	+10.0
					and cost reductions
								FY2024
FY2023
Results					Management Plan

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Net Sales and Operating Profit by Segment for FY2024

Higher operating results in all segments due to management approach emphasizing profits

																	(Billion Yen)
		FY2023			FY2024									Change
		Results		Management Plan
	Net	Operating	Operating	Net	Operating	Operating			Net				Operating	Operating
	Sales	profit	profit ratio	Sales	profit	profit ratio			Sales				profit	profit ratio
Energy	342.8	30.1	8.8%	348.0	31.0	8.9%				5.2					0.9	0.1%
	-4.0*	-0.5*
Industry	419.9	34.3	8.2%	414.0	36.0	8.7%				-5.9					1.7	0.5%
		-5.5*		-1.3*
Semiconductors	228.0	36.2	15.9%	245.0	37.0	15.1%			17.0				0.8	-0.8%
-8.3*		-2.3*
Food and	107.3	8.8	8.2%	102.0	9.2	9.0%	-5.3	0.4	0.8%
Beverage
Distribution
Others	63.2	4.3	6.8%	55.0	3.7	6.7%	-8.2	-0.6	-0.1%
Elimination	-57.9	-7.6	-	-50.0	-7.9	-	7.9	-0.3	-
and Corporate
Total	1,103.2	106.1	9.6%	1,114.0	109.0	9.8%			10.8			2.9	0.2%
	-18.2*	-4.1*
									*Exchange rate effect
																© Fuji Electric Co., Ltd. 8

Incoming Orders for FY2024 (YoY Comparison)

Orders unchanged year on year as increases in growth fields and industry component orders compensated for absence of large-scale orders recorded in previous fiscal year

By Segment		YoY
1,109.8
1,110.0 +0.2
56.8	55.4	-1.4	Others
107.4	101.8	-5.6	Food and
Beverage
			Distribution

217.8 244.6 +26.8 Semiconductors

419.0

407.2 -11.8Industry

362.3 347.9 -14.4Energy

						Elimination and
	-53.5		-47.0	+6.5	Corporate
	FY2023		FY2024
	Results		Management Plan

	(Billion Yen)
Expansion of operations in growth fields	+25.1
Energy (Energy Management, Power Supply and	+6.0
facility systems)
Semiconductors (Automotive)	+19.1

Recovery in demand for industrial components	+33.6
Energy (ED&C Components)	+11.1
Industry (FA※)	+14.8
Semiconductors (Industrial)	+7.7
※FA：Low voltage inverters, motors, measuring instruments
Decrease due to absence of large-scale orders	-56.4
recorded in previous fiscal year
Energy (Power Generation)	-32.0
Industry (Social Solutions and Equipment Construction)	-24.4

※FY2023 results reflect the organization reform conducted in FY2024

© Fuji Electric Co., Ltd. 9

Performance Outlook and Priority Measures by Segment

Energy / Industry

(Billion Yen)

Performance outlook

342.8

348.0

+5.2

Net Sales

• Higher sales following growth in demand for ED&C

components

8.8%

8.9%

Operating

• Increased profit due to benefits of higher sales volumes and

+0.1% profit ratio

Energy

30.1

cost reduction activities

31.0

+0.9

profit

Priority measures

Operating

• Growth in orders in businesses related to renewable energy,

data centers, and semiconductor factories

FY2023

FY2024

• Expansion of ED&C components business following

Results

Management Plan

introduction of new products

(Billion Yen)

Performance outlook

• Lower sales as a result of sales declines in equipment

419.9

414.0

-5.9

Net Sales

construction business

• Growth in profit due to benefits of higher sales volumes for

Operating

8.2%

8.7%

+0.5%

factory automation and IT solutions products as well as cost

profit ratio

Industry

reduction activities

34.3

36.0

Operating

Priority measures

+1.7

profit

• Reductions in lead times and costs achieved through

acceleration of local production and consumption

• Expansion of operations in India and other overseas markets

FY2023

FY2024

Results

Management Plan

• Growth of businesses related to manufacturing digital

transformation solutions and decarbonization businesses

© Fuji Electric Co., Ltd. 10