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

  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.

  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

  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.

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.

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.

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.

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.

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.

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.

  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.