Fuji Electric Industry : Financial Results for the Third Quarter of the Year 2023

December 6, 2022

Financial Results for the Third Quarter of the Year 2023

(Nine months ended on October 31, 2022)

Company:	FUJI ELECTRIC INDUSTRY CO., LTD.	Stock:	Tokyo Stock Exchange
Code Number:	6654	URL:	https://www.fujidk.co.jp/
Coordinator:	Noriko Shimomura	Head Office:	Kyoto, JAPAN
	Director and Executive Officer	Telephone:	[phone]

Date of the board meeting for this period: December 6, 2022

1. Third quarter financial results for the nine months ended on October 31(February 1,2022 through October 31,2022)

(1) Operating Results					(Unit: Millions	of Yen)
		Net sales		Operating income	Ordinary income
		Millions of yen	%	Millions of yen	%	Millions of yen	%
3rd Q.FY 2023		2,798	(1.0)	268	60.7	291	45.5
3rd Q.FY 2022		2,825	1.1	166	(38.4)	200	(28.4)
		Net income		Net income per share	Net income per share
			－basic		－diluted
		Millions of yen	%	Yen		Yen
3rd Q.FY 2023		204	46.1	36.23		36.18
3rd Q.FY 2022		139	(29.1)	24.37		24.31

Note: Percentages for net sales, operating income etc. show increase (decrease) from previous year's third

quarter.

(2) Financial Condition

	Total assets	Net assets	Equity ratio	Net assets per
	share
	Millions of yen	Millions of yen	%	Yen
3rd Q.FY 2023	10,913	10,097	92.4	1,818.64
FY 2022	11,004	10,286	93.4	1,789.50

Note: Equity capital						3rd Q.FY 2023	10,089 million yen
						FY 2022		10,277 million yen
2.Dividends
				Dividend per share
		First quarter	Second quarter			Third quarter		Year-end		Annual
		Yen	Yen			Yen		Yen		Yen
FY 2022		－	16.00			－		16.00		32.00
FY 2023		－	16.00
FY 2023 (forecast)						－		16.00		32.00

Note : Revision of dividends forecast for this period：No

3.Forecast of operating results for Fiscal Year 2023(February 1,2022 through January 31,2023)

	Net sales		Operating income		Ordinary income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY 2023	3,900	4.8	291	27.1	313	14.3
	Net income		Net income per share
	Millions of yen	%	Yen
FY 2023	217	13.9	38.81

Note 1: Percentages for net sales, operating income etc. for the FY 2023 show increase (decrease) from the previous year.

2: Revision of operating results forecast for this period：No

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4.Others
(1)	Application of special accounting policy for quarterly financial reporting ：No
(2)	Changes in the accounting policy		：Yes
(3)	Changes except (2)			：No
(4)	About number of shares
	Number of shares issued	：	3rd Q.FY 2023	6,669,000	FY 2022	6,669,000
	Treasury stock at end of each period ：	3rd Q.FY 2023	1,121,430	FY 2022	925,730
	Average number of shares	：	3rd Q.FY 2023	5,635,152	3rd Q.FY 2022	5,734,553

• Note with respect to "Forecast of operating results for Fiscal Year 2023"
  Forecasts announced by the company referred to above be prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties.
  Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts (earnings forecast, dividend forecast, and other forecasts).

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Qualitative information / Financial affairs

1.Description on business performance

(1) General situation

During the first nine months of the fiscal year ending January 31, 2023, Japan's economy was showing signs of recovery in consumer spending and capital investment.

Under these circumstances, We focused our sales activity on the domestic market of electric power, public facilities, general industries, electric railway and overseas market of Asia and the Middle East. As a result of this performance, although the sales of Auxiliary switch and Connector terminal block increased, the sales of Equipments for photovoltaic generation and Products for railway vehicles decreased.

The cumulative sales amount in the first nine months of the fiscal year was 2,798 million yen (decreased by 1.0% compared with the previous year).

Regarding the cumulative profit, the inventory was built up with increase of orders received, manufacturing costs decreased, the operating income was 268 million yen (increased by 60.7% compared with the previous year), the ordinary income was 291 million yen (increased by 45.5% compared with the previous year), and the net income was 204 million yen (increased by 46.1% compared with the previous year).

1. Products sales Control switches
   Although the sales of Switches for railway vehicles decreased, the sales of Auxiliary switch increased. The sales amount was 760 million yen (increased by 1.4% compared with the previous year).
   Connecting devices
   Connector terminal block and Test terminal block were selling well. The sales amount was 1,218 million yen (increased by 9.7% compared with the previous year).
   Pilot lamps and Indicators
   Although the sales of Indicators increased, the sales of Indicator for railway vehicles and Multi-window Indicator decreased.
   The sales amount was 350 million yen (decreased by 4.5% compared with the previous year). Electronic devices
   The sales of Digital alarm and Indicator module were sluggish. However, the sales of I/O terminal and Telephone relay increased.
   The sales amount was 436 million yen (increased by 5.8% compared with the previous year). Third party sales
   Although the sales of parts increased, the sales of Equipments for photovoltaic generation decreased. The sales amount was 32 million yen (decreased by 81.2% compared with the previous year).
   Others
   The sales amount except for Electric control devices was 0 million yen.

2. Description on business performance forecast

As for the prospects of our business performances of January 2023, there have been no changes in the prospects announced by the brief note on August 29, 2022.

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of October 31,
	2022	2022
	Amount	Amount
（Assets）
Ⅰ Current assets
1.Cash and deposits	4,552,192	4,455,800
2.Notes and accounts receivable-trade	1,197,161	1,117,586
3.Electronically recorded monetary claims	311,988	306,312
4.Finished goods	163,762	234,878
5.Work in process	397,250	459,237
6.Raw materials	498,818	561,708
7.Others	39,880	38,928
Total current assets	7,161,055	7,174,452
Ⅱ Noncurrent assets
(1) Property, plant and equipment
1.Buildings, net	1,615,507	1,536,124
2.Land	1,347,627	1,347,627
3.Others, net	244,574	188,844
Total property, plant and equipment	3,207,709	3,072,596
(2) Intangible assets	9,510	7,222
(3) Investments and other assets
1.Investment securities	577,579	595,291
2.Others	48,336	64,199
Total investments and other assets	625,915	659,490
Total noncurrent assets	3,843,136	3,739,309
Total assets	11,004,191	10,913,761

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of October 31,
	2022	2022
	Amount	Amount
（Liabilities）
Ⅰ Current liabilities
1.Accounts payable-trade	138,762	160,434
2.Short-term loans payable	120,000	120,000
3.Income taxes payable	54,359	63,249
4.Provision for bonuses	58,533	99,207
5.Provision for product warranties	114,019	102,886
6.Others	117,489	137,027
Total current liabilities	603,164	682,805
Ⅱ Noncurrent liabilities
1.Provision for retirement benefits	100,732	118,186
2.Others	13,553	15,061
Total noncurrent liabilities	114,285	133,247
Total liabilities	717,449	816,053
（Net assets）
Ⅰ Shareholders' equity
1.Capital stock	1,087,250	1,087,250
2.Capital surplus	1,712,365	1,712,314
3.Retained earnings	8,286,226	8,309,744
4.Treasury stock	(1,027,968)	(1,255,990)
Total shareholders' equity	10,057,873	9,853,318
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities	219,680	235,733
Total valuation and translation adjustments	219,680	235,733
Ⅲ Share option	9,187	8,656
Total net assets	10,286,741	10,097,708
Total liabilities and net assets	11,004,191	10,913,761

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