Below is the summary announced on October 26, 2023 of financial results for 1H FY2023 six months ended September 30, 2023.

  The targets of Fuji Electric’s Reiwa Prosperity 2023 medium-term management plan, which concludes with the fiscal year ending March 31, 2024, were accomplished a year ahead of schedule in the fiscalyear ended March 31, 2023. Specifically, these targets were net sales of ¥1 trillion and an operatingprofit ratio of more than 8.0%. To achieve further growth in the fiscal year ending March 31, 2024, theyear of the centennial anniversary of Fuji Electric’s founding, the Company will move forward withthe promotion of growth strategies centered on expanding its power electronics and powersemiconductor businesses, the further improvement of profitability through the strengthening ofglobal manufacturing capabilities, and the ongoing reinforcement of operating foundations focused onenvironmental, social, and governance (ESG) factors, with a particular emphasis on human resourcesin regard to social factors. In addition, adaptiveness toward operating environment changes will beheightened with the goal of growing sales and profit.

  In the six-month period ended September 30, 2023, brisk capital investment by manufacturers and data center business operators was seen amid constantly growing needs related to vehicle electrification, energy saving, and digital infrastructure. These needs were sparked by the growth in investments for achieving carbon neutrality and promoting digitalization. Meanwhile, the outlook remains opaque as a result of the continuation of sluggish capital investment trends in China as well as global monetary tightening.

  In this environment, production capacity increases for power semiconductors were carried out in response to growing demand while ongoing steps were taken to optimize production systems to accommodate demand and to minimize the impacts on part procurement from geopolitical risks and supply chain disruptions.

  Increases were seen in the sales of all segments, with the exception of the Power Generation segment, resulting in consolidated net sales in the six-month period ended September 30, 2023, rising ¥44.6 billion, or 10%, year on year, to ¥491.7 billion.New record highs were posted for net sales.

  Although profit was impacted by high material and energy prices as well as by rising expenses for research and development and production capacity augmentations, overall profit 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 profit rose ¥8.3 billion year on year, to ¥35.0 billion; ordinary profit was up ¥5.7 billion, to ¥34.6 billion; and profit attributable to owners of parent increased ¥4.1 billion, to ¥24.3 billion. New record highs were posted for operating profit, ordinary profit, and profit attributable to owners of parent.

Net sales: ¥122.8 billion (up 6% year on year)
Operating profit: ¥8.7 billion (down ¥0.9 billion year on year)

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

Net sales: ¥171.2 billion (up 14% year on year)
Operating profit: ¥5.0 billion (up ¥3.9 billion year on year)

  In the Power Electronics Industry segment, net sales and operating profit were up year on year as a result of higher demand in the automation systems business, the equipment construction business, and the IT solutions business.

• In the automation systems business, net sales and operating results were up year on year largely as a result of increased production of factory automation components.
• In the social solutions business, net sales and operating results were up year on year due to increases in orders for radiation-related equipment.
• In the equipment construction business, net sales and operating results were up year on year as a result of the recording of large-scale orders for air-conditioning equipment construction.
• In the IT solutions business, net sales and operating results were up year on year due to higher demand for large-scale public- and academic-sector projects.

Net sales: ¥108.5 billion (up 12% year on year)
Operating profit: ¥16.8 billion (up ¥1.8 billion year on year)

  In the semiconductor business, net sales increased year on year due to growth in demand for power semiconductors for electrified vehicles (xEVs). The growth in sales led to operating results improving year on year, despite the rise in expenses for bolstering power semiconductor production capacity and the increases in material costs.

Net sales: ¥32.5 billion (down 6% year on year)
Operating profit: ¥0.1 billion (compared with operating loss of ¥0.5 billion in the previous equivalent period)

• In the power generation business, net sales were down year on year due to the absence of large-scale renewable energy projects recorded in the previous equivalent period while operating results were up as a result of differences in profitability between projects and the benefits of cost reduction activities.

Net sales: ¥53.2 billion (up 19% year on year)
Operating profit: ¥5.4 billion (up ¥2.2 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.
• In the store distribution business, net sales and operating results were up year on year due to higher orders for counter fixtures combined with growth in demand for convenience store equipment renovations.

Net sales: ¥31.3 billion (up 9% year on year)
Operating profit: ¥2.1 billion (up ¥0.5 billion year on year)

  In light of the business result trends seen in the six-month period ended September 30, 2023, Fuji Electric has chosen not to revise the consolidated forecast for business results for the fiscal year ending March 31, 2024, that was announced together with financial results for three-month period ended June 30, 2023, on July 27, 2023. This decision was made despite the following disparities between the performance and forecasts for individual segments.

  The forecast assumes exchange rates of US$1 = ¥140, €1 = ¥150, and RMB1 = ¥19.5 for the period from October 1, 2023, onward.