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News Release
Fuji Electric Group Formulates New Medium-term Management Plan (FY2009 to FY2011)

February 25,2010
Fuji Electric Holdings Co., Ltd.

A company that contributes to society through its businesses in the field of “energy and the environment”

The Fuji Electric Group announced today that it has formulated its new three-year medium-term management plan for the period from fiscal 2009 to fiscal 2011. This plan outlines our approach to become a company that contributes to society through its businesses in the field of “energy and the environment.”
　The Fuji Electric Group will continue to concentrate its management resources on businesses in the field of “energy and the environment,” from completing its ongoing restructuring initiatives that are being implemented in fiscal 2009 to pursuing the growth strategy initiatives that will be implemented from fiscal 2010. The Group seeks to build a long-term and stable earning base as well as to implement CSR management initiatives in pursuit of fostering harmony with the global society.

1. Basic Policy

The Fuji Electric Group aims to become a consistently high-earning business group centered on power electronics through the implementation of the following three medium-term management strategies.

(1) Concentrate efforts on businesses in the field of “energy and the environment”
Develop businesses based on technological strengths accumulated over many years in power electronics, etc.
(2) Develop solutions business with emphasis on technology
Provide customer-oriented products / services underpinned by strong technologies
(3) Develop business centered on Chinese / Asian market
Increase overseas sales as percentage of net sales: 25% => 40%

2. Management Targets for FY2011

Net Sales ¥ 750.0 billion
Ratio of Operating
Income to Net Sales		 5.0%

3. Management Initiatives

Overseas Business Expansion 40%
(Increase overseas production ratio in FY2011 from the 22% FY2009 forecast)
R&D Cost ¥ 85.0 billion
(3-year cumulative figure; priority investment in the field of “energy and the environment”: 60%)
Capital Investment ¥ 83.0 billion
(3-year cumulative figure; priority investment in the field of “energy and the environment”: 67%)

4. New Segment

The Fuji Electric Group will proceed toward the creation of a new segment in the field of “energy and the environment” in step with development of optimal solutions business from April 1, 2010.

New Segment

Net Sales by Segment for FY2011 (¥ billion)

Energy Solutions 100.0
Environmental Solutions 340.0
Semiconductors 90.0
Vending Machines, ED&C Components, and Magnetic Disks 205.0
Others such as Plant Facility Construction 110.0

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Amounts shown are before elimination of inter-segment sales.

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Please refer to the Investor Relations section of our corporate Web site for further information. (The information will be made available within a few days of this news release.)