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News Release
Fuji Electric Group Realigns Its Sales Organization Approximately 2000 sales staff will be integrated into Fuji Electric Systems

May 15,2009
Fuji Electric Holdings Co., Ltd.

Fuji Electric Holdings Co., Ltd. (FHC) (President: Haruo Ito, Headquarters: Shinagawa-ku, Tokyo) has announced today that Fuji Electric Systems Co., Ltd. (FES), its one of the operating companies, will consolidate the semiconductor sales division of Fuji Electric Device Technology Co., Ltd. (FDT) and its five sales subsidiaries, Fuji EIC Co., Ltd., Nishinihon Fuji Electric Co., Ltd., Chubu Fuji Electric Co., Ltd., Kyushu Fuji Electric Co., Ltd., and Tohoku Fuji Electric Co., Ltd., into its sales division as of July 1, 2009. By these integrating seven sales organizations into one company, the Fuji Electric Group will provide solutions and services that are directly linked to customers.

　FHC has also announced that Fuji Electric Technica Co., Ltd., another sales subsidiary of FES, will become under the control of Fuji Electric FA Components & Systems Co., Ltd. (FCS), a joint venture company with the French company, Schneider Electric, as of July 1, 2009. Through this transfer of control of the FES's subsidiary, the Fuji Electric Group will work more closely with customers to offer component products and deliver customer satisfaction.

1.Objectives

(1) Concentrate management resources to raise customer satisfaction

(a) Transform the organization to an optimal sales structure
Sales resources of seven companies will be consolidated to establish a single interface with customers in order to achieve a more close communication and further raise customers' satisfaction. A large sales workforce comprised of approximately 2000 people will make a concerted effort to offer solutions and services that best fit with each customer.
(b) Further focus on the Energy and Environment fields
Focusing on the Energy and Environment fields, capabilities of sales representatives will be strengthened so that they can propose better solutions to customers and offer one-stop sales covering from components to system plants. By being ahead of rivals in anticipating future needs, we will pursue to fulfill customers' needs.

(2) Add value to the products

(a) Provide composite products comprising semiconductors, motors, control equipment and others
We have traditionally offered individually optimized systems and products. Going forward, however, we will combine systems and products to create solutions tailored to each customer. The following is some of the examples:
・ Driving power supply systems for social infrastructure such as railway cars
・ Power generation systems using green energy (e.g. solar cells, photovoltaic power conditioning systems, grid connection, smart-grids)
・ Power supply systems for Green IT
(b) Bolster solution sales
・ Engineering and service divisions composed of 700 people will be consolidated with the sales division to bolster solution sales.
・ Reassign development engineers who work at the factories on the front-line of sales to reinforce solution activities for customers.

(3) Better manage costs by streamlining operations

While maintaining existing service sites, we will further fine-tune our customer services. To maximize benefits of this realignment, we will operate a simple organization and better manage costs through rapid response to customers, reduction of SG&A in the sales division, consolidation of sales sites and supply chain innovation.

By achieving these objectives, the Fuji Electric Group will restore profitability. We position fiscal 2009 as the final year for the structural reform and are committed to turning a profit in fiscal 2010 through (1) expansion of Energy and Environment businesses and (2) turnaround of the electric distribution and control (E&C) equipment business. To this end, we will further move forward the business structural reform and disclose the progress status accordingly.

2.Realignment Scheme

(1) Scheme for consolidation of seven companies

(a) The semiconductor sales division of FDT will be consolidated into FES.
(b) Five sales subsidiaries of FES, Fuji EIC, Nishinihon Fuji Electric, Chubu Fuji Electric, Kyushu Fuji Electric and Tohoku Fuji Electric will be merged into FES.

(2) Reinforcement scheme for the ED&C Equipment business

　(a)　 Strengthen sales channel

　 The component business centered on ED&C equipment will be strengthened by transferring control of Fuji Electric Technica, a sales subsidiary, from FES to FCS.
(b) Increase collaboration with Schneider Electric
Aiming to turn the ED&C equipment business into the black, we have formed and set up a collaboration reinforcement team with Schneider Electric and have agreed on driving unprecedented, innovative reforms in manufacturing, development and design, engineering, sales and logistics areas.

(3)Initiatives to streamline operations

Being committed to turning a profit in fiscal 2010, we will reduce fixed costs, in addition to better management of costs through cutback on SG&A in the sales division, consolidation of sales sites and supply chain innovation.

  • Cut back on SG&A in the sales division by￥7.5 billion

  • Consolidate 90 sales sites into 50 sites

  • Carry out supply chain innovation to reduce product inventories and warehouses

3.Sales Target

  • Sales target of the relevant segments for fiscal 2009:￥510 billion
    (No. of sales staff: about 2,000; Ratio of SG&A in the sales division: 10.7% in fiscal 2008 →9.8% in fiscal 2009)

4.Schedule

As of July 1, 2009,

(1) the semiconductor sales division of FDT will be consolidated into FES;
(2) five sales subsidiaries will be merged into FES; and
(3) Fuji Electric Technica will become under the control of FCS.

FYR: Overseas Sales Organization

In line with realignment of sales organization in Japan, general sales companies were set up in China, Asia, Europe and the US as of April 1, 2009.

Contact to:

Marketing
Business Strategy DiV.
Fuji Electric Holdings Co., Ltd.
Tel. +81-3-5435-7201