Fuji Electric Global

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Results Summary

Below is the summary announced on January 26, 2023 of financial results for 3Q FY2022 nine months ended December 31, 2022.

Consolidated Financial Summary

(¥ billion)
  Nine-month period ended December 31, 2021 Nine-month period ended December 31, 2022 Change
Net sales 620.0 690.8 70.8
Operating income 32.7 42.4 9.8
Ordinary income 34.1 41.3 7.1
Net income attributable to owners of parent 25.4 29.0 3.6

  The fiscal year ending March 31, 2023, will be an important year for working toward the targets of the Reiwa Prosperity 2023, the five-year medium-term management plan slated to conclude with the fiscal year ending March 31, 2024. In the fiscal year ended March 31, 2022, an operating margin of 8.2% was achieved. In pursuit of greater improvements with this regard, the Company is moving forward with the promotion of growth strategies centered on expanding its power electronics and power semiconductor businesses, the further improvement of profitability through the strengthening of global manufacturing capabilities, and the ongoing reinforcement of operating foundations focused on environmental, social, and governance (ESG) factors, with a particular emphasis on human resources in regard to social factors. These efforts are aimed at accomplishing our target of net sales of ¥1 trillion in the fiscal year ending March 31, 2024.

  In the nine-month period ended December 31, 2022, ongoing capital investment by manufacturers and data center business operators was seen amid growing needs related to vehicle electrification, energy saving, and digital infrastructure. These needs were sparked by the global movement toward decarbonization and the accelerated digitalization trend. Meanwhile, capital investment in China was sluggish due to the impacts of the COVID-19 pandemic. The outlook remains opaque as a result of the impacts on global supply chains of factors such as rising energy costs and high material prices stemming from the rapid depreciation of the Japanese yen as well as material shortages.

  In this environment, production capacity increases for power semiconductors were carried out in response to robust demand while ongoing steps were taken to optimize supply chains, including forming relationships with multiple suppliers and altering designs to use alternative parts in order to address the difficulties in procuring certain parts.

Net Sales

  Increases were seen in the sales of all segments, despite the limitation on production from parts shortages, resulting in consolidated net sales in the nine-month period ended December 31, 2022, rising ¥70.8 billion, or 11%, year on year, to ¥690.8 billion

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

  Although high material and energy prices impacted income, overall income was buoyed by sales volume growth coupled with the benefits of increases to product selling prices, cost reduction activities, and foreign exchange influences. As a result, consolidated operating income rose ¥9.8 billion year on year, to ¥42.4 billion; ordinary income was up ¥7.1 billion, to ¥41.3 billion; and net income attributable to owners of parent increased 3.6 billion, to ¥29.0 billion. New record highs were posted for net sales, operating income, ordinary income, and net income attributable to owners of parent.

Consolidated Financial Results by Segments

Power Electronics Energy

Net sales: ¥180.2 billion (up 16% year on year)
Operating income: ¥15.3 billion (up ¥6.0 billion year on year)

  In the Power Electronics Energy segment, net sales and operating income were up year on year primarily as a result of higher demand in the power supply and facility systems business and the ED&C components business.

  • In the energy management business, net sales and operating results were down year on year as a result of the absence of large-scale orders for substation equipment for industrial applications recorded in the previous equivalent period.
  • In the power supply and facility systems business, net sales and operating results improved year on year as a result of substantially higher demand for projects from data centers and semiconductor manufacturers in Japan and overseas.
  • In the ED&C components business, net sales and operating results improved year on year due to higher demand from manufacturers of machine tools, semiconductor production equipment, and other finished equipment. Such demand was particularly notable among manufacturers in Japan.

Power Electronics Industry

Net sales: ¥233.1 billion (up 6% year on year)
Operating income: ¥3.8 billion (down ¥2.5 billion year on year)

  In the Power Electronics Industry segment, net sales were up year on year as a result of higher demand in the IT solutions business coupled with the benefits of foreign exchange influences. Meanwhile, operating income was down year on year due to high material prices and reductions in production following difficulties in procuring parts.

  • In the automation systems business, net sales were up year on year as the benefits of foreign exchange influences outweighed the impacts of the COVID-19 pandemic seen in China. Operating results, however, were down year on year due to the high prices for materials and the effects on production from difficulties in procuring parts felt centered on low-voltage inverters and FA components.
  • In the social solutions business, net sales and operating results were down year on year due to decreases in ship- and railcar-related orders.
  • In the equipment construction business, net sales were up year on year as a result of higher demand for electrical equipment construction while operating results were down year on year due to increases in material and equipment prices.
  • In the IT solutions business, net sales and operating results were up year on year due to higher demand for large-scale academic- and private-sector projects.

Semiconductor

Net sales: ¥146.9 billion (up 13% year on year)
Operating income: ¥22.5 billion (up ¥3.3 billion year on year)

  In the semiconductor business, net sales increased year on year, despite the repercussions of withdrawing from magnetic disk operations, due to growth in demand for power semiconductors for electrified vehicles (xEVs) and for industrial applications as well as to the benefits of foreign exchange influences. The growth in sales and increased production levels resulted from high operating ratios led to improvements in operating results, despite the rise in expenses for bolstering power semiconductor production capacity and the increases in material and energy costs.

Power Generation

Net sales: ¥55.7 billion (up 26% year on year)
Operating loss: ¥0.2 billion (compared with operating loss of ¥1.1 billion in the previous equivalent period)

  • In the power generation business, net sales and operating income was up year on year due to the benefits of large-scale renewable energy projects and differences in profitability between projects.

Food and Beverage Distribution

Net sales: ¥68.4 billion (up 5% year on year)
Operating income: ¥2.9 billion (up ¥1.3 billion year on year)

  • In the vending machine business, net sales and operating results improved year on year because of growth in demand in Japan and the benefits of cost reduction activities, which counteracted the negative impacts of a Chinese subsidiary recording an allowance for doubtful accounts.
  • In the store distribution business, net sales and operating results were down year on year due to the absence of large-scale orders for automatic change dispensers recorded in the previous equivalent period.

Others

Net sales: ¥43.2 billion (up 10% year on year)
Operating income: ¥2.5 billion (up ¥0.8 billion year on year)

  • Note:

    • Effective April 1, 2022, the businesses included in the Power Electronics Energy segment and the Power Electronics Industry segment were reorganized in conjunction with changes to organizational structures.
      Figures for the six-month period ended September 30, 2021, have been restated to reflect this change.

Forecasts for the Fiscal Year Ending March 31, 2023

  In light of the business result trends seen in the nine-month period ended December 31, 2022, Fuji Electric has chosen not to revise the consolidated forecast for business results for the fiscal year ending March 31, 2023, that was announced together with financial results for six-month period ended September 30, 2022, on October 27, 2022

  Forecasts for consolidated business results in the fiscal year ending March 31, 2023, are as follows.

  The forecast assumes exchange rates of US$1 = ¥135, €1 = ¥135, and RMB1 = ¥19.5 for the period from January 1, 2023, onward.

Forecasts for consolidated business results in the fiscal year ending March 31, 2023

(¥ billion)
  Previous announcement Today's announcement Change
Net sales 985.0 985.0 0.0
Operating income 87.0 87.0 0.0
Ordinary income 88.0 88.0 0.0
Net income attributable to owners of parent 59.5 59.5 0.0

(Forecasts by Segment)

(¥ billion)
  Previous announcement Today's announcement Change
Net sales Operating
income
(Loss)
Net sales Operating
income
(Loss)
Net sales Operating
income
(Loss)
Power Electronics Systems Energy 252.0 26.6 252.0 26.6 0.0 0.0
Power Electronics Systems Industry 355.0 25.6 355.0 25.6 0.0 0.0
Semiconductors 204.0 31.3 204.0 31.3 0.0 0.0
Power Generation 82.0 4.1 82.0 4.1 0.0 0.0
Food and Beverage Distribution 93.0 4.2 93.0 4.2 0.0 0.0
Others 55.0 3.3 55.0 3.3 0.0 0.0
Elimination and Corporate (56.0) (8.1) (56.0) (8.1) 0.0 0.0
Total 985.0 87.0 985.0 87.0 0.0 0.0

Quartaly Financial Results

Consolidated summary

(Billions of yen)

2022/3

2023/3

(Millions of yen)
  2023/3
  1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Net sales 203,940 243,197 447,138 243,638
Operating income 9,872 16,847 26,719 15,715
Ordinary income 12,296 16,582 28,879 12,387
Income before income taxes 16,473 18,131 34,604 14,970
Profit attributable to owners of parent 9,931 10,326 20,258 8,702
  2022/3
  1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Net sales 189,958 207,726 397,685 222,295 290,245 512,540 910,226
Operating income 5,299 10,992 16,291 16,368 42,175 58,543 74,835
Ordinary income 5,909 10,982 16,892 17,230 45,174 62,405 79,297
Income before income taxes 8,067 15,123 23,191 18,171 47,124 65,296 88,487
Profit attributable to owners of parent 4,973 9,005 13,979 11,417 33,263 44,681 58,660

Net Sales by Segment

(Millions of yen)
  2023/3
  1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Power Electronics Energy 51,257 64,384 115,642 64,510
Power Electronics Industry 65,172 84,982 150,154 82,969
Semiconductors 46,202 50,819 97,021 49,859
Power Generation 16,807 17,980 34,787 20,871
Food and Beverage Distribution 21,692 23,103 44,795 23,599
Others 14,338 14,267 28,605 14,609
Subtotal 215,470 255,536 471,007 256,420
Elimination -11,529 -12,339 -23,869 -12,781
Total 203,940 243,197 447,138 243,638
  2022/3
  1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Power Electronics Energy 44,740 54,006 98,747 56,766 75,457 132,224 230,971
Power Electronics Industry 65,299 74,459 139,758 80,600 103,790 184,390 324,149
Semiconductors 44,529 40,486 85,016 44,427 49,363 93,790 178,807
Food and Beverage Distribution 22,055 22,244 44,300 21,039 25,443 46,482 90,783
Power Generation 11,952 14,673 26,625 17,717 34,220 51,937 78,563
Others 12,336 13,173 25,509 13,882 15,318 29,200 54,710
Subtotal 200,914 219,043 419,957 234,434 303,592 538,026 957,984
Elimination -10,955 -11,316 -22,272 -12,138 -13,347 -25,486 -47,758
Total 189,958 207,726 397,685 222,295 290,245 512,540 910,226

Operating Income (Loss) by Segment

(Millions of yen)
2023/3
1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Power Electronics Energy 3,895 5,680 9,576 5,768
Power Electronics Industry -1,832 2,956 1,124 2,710
Semiconductors 7,103 7,845 14,948 7,503
Power Generation 100 -589 -489 723
Food and Beverage Distribution 1,634 1,594 3,229 -324
Others 741 792 1,534 939
Subtotal 11,643 18,280 29,924 17,321
Elimination/corporate -1,771 -1,433 -3,205 -1,605
Total 9,872 16,847 26,719 15,715
  2022/3
  1Q 2Q 1 Half 3Q 4Q 2 Half Annual
Power Electronics Energy 989 3,216 4,205 5,131 11,880 17,012 21,217
Power Electronics Industry 332 2,042 2,375 4,005 17,442 21,448 23,823
Semiconductors 5,553 6,259 11,812 7,352 7,970 15,323 27,136
Food and Beverage Distribution 210 641 852 714 1,440 2,154 3,007
Power Generation -673 -459 -1,133 6 4,251 4,258 3,124
Others 469 551 1,021 651 1,164 1,815 2,837
Subtotal 6,882 12,251 19,133 17,862 44,150 62,012 81,146
Elimination/corporate -1,583 -1,258 -2,842 -1,493 -1,975 -3,469 -6,311
Total 5,299 10,992 16,291 16,368 42,175 58,543 74,835

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