Results Summary

Below is the summary announced on April 26, 2018 of financial results for FY2017 ended March 31, 2018.

Consolidated Financial Summary

(¥ billion)

  FY2016 FY2017 Change
Net sales
837.8
893.5
55.7
Operating Income/Loss
44.7
56.0
11.3
Ordinary Income/Loss
46.3
56.0
9.8
Net income attributable to owners of parent
41.0
37.8
(3.2)

In the fiscal year ended March 31, 2018, a gentle, overseas recovery trend was seen in the Company’s operating environment supported by robust demand for machine tools and robots, which was driven by increased production facility automation and labor saving needs in China and other countries. In Japan, there was a modest recovery trend against the backdrop of higher demand resulted from increases in replacements of aged equipment and investments in automation and labor saving.

In this environment, we moved ahead with the FY2018 Medium-Term Management Plan, Renovation 2018. Acting in accordance with the plan’s basic policy of “further renovation of Fuji Electric,” we are implementing the growth strategies of strengthening the power electronics systems business and further enhancing manufacturing capabilities while also pursuing improved profitability by reenergizing the Pro-7 Activities that entail reviewing all costs associated with business activities.

Net Sales

Consolidated net sales in the fiscal year ended March 31, 2018, increased ¥55.7 billion year on year, to ¥893.5 billion, as a result of higher demand. Higher sales were posted in all business segments, with particularly large increases being seen in the Power Electronics Systems—Industry Solutions, Electronic Devices, and Food and Beverage Distribution segments.

Operating Income, Ordinary Income and Net Income Attributable to Owners of Parent

Consolidated operating income rose ¥11.3 billion year on year, to ¥56.0 billion, due to the benefits of higher demand and cost reduction efforts, and ordinary income was up ¥9.8 billion, to ¥56.0 billion. Both of these figures represented new record highs. Net income attributable to owners of parent, meanwhile, decreased ¥3.2 billion, to ¥37.8 billion, because of the absence of the gain on sales of investment securities recorded in the previous fiscal year.

Consolidated Financial Results by Segments

Power Electronics Systems—Energy Solutions

Net sales: ¥224.1 billion (up 2% year on year)
Operating income: ¥14.7 billion (up ¥0.9 billion year on year)


In the Power Electronics Systems—Energy Solutions segment, net sales and operating income were up year on year. Solid performance in the ED&C components business supported by increased machine tool demand outweighed the impacts of reduced demand in the energy management business and the power supply systems business.

・In the energy management business, net sales decreased year on year primarily due to a decline in smart meter sales volumes while operating results were relatively unchanged from the previous fiscal year due to the benefits of cost reduction efforts.
・In the transmission and distribution systems business, net sales increased year on year due to contributions from large-scale power and industrial field orders from overseas. However, operating results worsened year on year as a result of a less favorable sales mix.
・In the power supply systems business, net sales decreased year on year due to reduced demand for power conditioning systems for use in solar power generation systems. Regardless, operating results improved year on year due to the benefits of cost reduction efforts.
・In the ED&C components business, net sales and operating results improved year on year as a result of strong demand seen from machine tool and other machinery manufacturers as well as from overseas semiconductor manufacturers.

Power Electronics Systems—Industry Solutions

Net sales: ¥315.9 billion (up 10% year on year)
Operating income: ¥18.3 billion (up ¥4.3 billion year on year)


In the Power Electronics Systems—Industry Solutions segment, net sales and operating income increased year on year. Performance was driven by the factory automation business, which benefited from robust demand for the automation of production facilities in Japan and China, and the process automation business, which enjoyed brisk replacement demand in the Japanese market, as well as by the IT solutions business.

・In the factory automation business, net sales and operating results improved year on year due to strong conditions in Japan and China centered on markets for inverters and factory automation components.
・In the process automation business, net sales and operating results improved year on year because of the brisk replacement demand seen in the Japanese market.
・In the environmental and social solutions business, net sales and operating results improved year on year as a result of higher demand for electrical equipment for railcars in Asia and other regions.
・In the equipment construction business, net sales increased year on year following strong performance in air-conditioning equipment and electricity and information distribution operations. Operating results, however, worsened year on year as a result of a less favorable sales mix.
・In the IT solutions business, net sales and operating results improved year on year due to increases in orders from the academic sector and large-scales orders from the public sector.

Power and New Energy

Net sales: ¥96.9 billion (up 3% year on year)
Operating income: ¥5.5 billion (down ¥2.0 billion year on year)


・In the power and new energy business, net sales increased year on year because the benefits of large-scale orders for thermal power generation systems counteracted the impacts of the decline in large-scale orders for hydro power generation systems and solar power generation systems. However, operating income worsened year on year as a result of a less favorable sales mix.

Electronic Devices

Net sales: ¥126.9 billion (up 7% year on year)
Operating income: ¥13.7 billion (up ¥5.7 billion year on year)


・In the electronic devices business, net sales and operating income improved year on year as a result of solid demand from the automotive field coupled with the increased demand for power semiconductors from industrial fields, which was a result of rising automation, labor saving, and energy saving needs in the Chinese and Japanese markets.

Food and Beverage Distribution

Net sales: ¥117.8 billion (up 7% year on year)
Operating income: ¥6.2 billion (up ¥0.2 billion year on year)


・In the vending machine business, although the revision of customers’ plans caused performance in the Chinese market to remain around the same level as in the previous fiscal year, overall net sales and operating results improved year on year due to higher demand from customers in the Japanese market.
・In the store distribution business, net sales increased year on year following a rise in demand for store equipment for convenience stores. However, operating results worsened year on year as a result of a less favorable sales mix.

Others

Net sales: ¥60.4 billion (up 2% year on year)
Operating income: ¥2.9 billion (up ¥0.8 billion year on year)


Forecasts for the Fiscal Year Ending March 31, 2019

Forecasts for consolidated business results in the fiscal year ending March 31, 2019, are as follows.
Further, forecasts for the fiscal year ending March 31, 2019, assume exchange rates of US$1 = ¥105 and €1 = ¥125.

Consolidated Business Results Forecasts(¥ billion)
  FY2017 FY2018 Change
Net sales
893.5
900.0
6.5
Operating income
56.0
58.5
2.5
Ordinary income
56.0
60.0
4.0
Net income attributable to owners of parent
37.8
39.5
1.7
Forecasts by Segment(¥ billion)
  FY2018
Net Sales Operating Income
Power Electronics Systems
- Energy Solutions
224.4 16.4
Power Electronics Systems
- Industry Solutions
322.0 19.2
Power and New Energy 102.0 6.5
Electronic Devices 133.0 15.2
Food and Beverage Distribution 116.0 6.5
Others 59.1 2.2
Elimination and Corporate (56.5) (7.6)
Total 900.0 58.5

Effective from April 1, 2018, the Company partially reorganized the areas of operations contained within the Power Electronics Systems—Energy Solutions and Power Electronics Systems—Industry Solutions business segments.


In the fiscal year ending March 31, 2019, the Power Electronics Systems—Energy Solutions business segment will focus on incorporating domestic replacement demand in the energy management business while expanding its operations in Asia. This segment will also enhance its overseas engineering and manufacturing capabilities in the power supply and facility systems business and work to take advantage of demand from domestic and overseas machinery manufacturers as well as domestic construction demand in the ED&C components business.


The Power Electronics Systems—Industry Solutions will endeavor to expand its factory automation systems operations in response to the automation needs of the Japanese and Chinese markets in the factory automation business. At the same time, this segment will seek to augment its overseas engineering and manufacturing capabilities and grow plant system orders in the process automation business. The focus of the social solutions business will be to accelerate the development of new products for expanding overseas railroad operations.


The Power and New Energy business segment will work to expand its thermal and geothermal power generation service operations while increasing domestic and overseas orders in the renewable energy and new energy fields.


The Electronic Device segment will strive to boost sales in the industrial field, which is seeing increased demand around the world, while also accelerating the development of new products in response to the trend toward electric vehicles in the automotive field and bolstering its production capacity to grow operations in this field.


The aims of the Food and Beverage Distribution business segment’s efforts in the vending machine business will be to expand overseas operations centered on China and other parts of Asia and to boost competitiveness by developing high-value-added products and reducing costs. In the store distribution business, the segment will strive to increase orders for store equipment from convenience stores while developing new products that help realize labor savings.

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