To Our Shareholders and Investors

   The United Nations Sustainable Development Goals (SDGs) and the Paris Agreement (an international framework for global warming countermeasures) have been adopted by the international community, and so, as members of society, companies must also take positive action to both achieve economic growth and resolve social and environmental issues.
   Fuji Electric's energy and environment businesses are congruent with contemporary needs. We will create products and systems that can efficiently use electricity and thermal energy, enhance our manufacturing capabilities and product reliability as a manufacturer, and unite our employees from around the world to contribute to solving the issues faced by our customers and by society.

  In fiscal 2018, which we called Renovation 2018 and set as the final year of our Medium-Term Management Plan, we adopted a basic policy of "further renovation of Fuji Electric" and worked on promoting growth strategy and strengthening profitability. We also started to formulate a new five-year Medium-Term Management Plan set to end in fiscal 2023, which marks the 100-year anniversary of our foundation.
   Consolidated net sales in fiscal 2018 rose ¥21.5 billion to ¥914.9 billion despite increased market uncertainty caused by trade friction between the United States and China. Operating income rose ¥4 billion to ¥60 billion, and the operating margin reached a record high of 6.6%. Net income attributable to owners of parent increased ¥2.5 billion to ¥40.3 billion. We were able to achieve all the targets for net sales, income, and financial indicators set forth in the Medium-Term Management Plan.

   In consideration of these performance trends, we decided to issue a year-end dividend of ¥40 per share to our shareholders. As of October 1, 2018, we conducted a one-for-five reverse stock split pertaining to shares of common stock, and so considering the impact of this consolidation, the annual dividend per share will be ¥80, an increase of ¥10 over the previous fiscal year.

  As for our FY2023 Medium-Term Management Plan, which is positioned as our medium-term management target, we will further strengthen the power electronics systems and power semiconductor businesses that have been our focus thus far, and strengthen our foundation as a sustainable growth company by prioritizing the expansion of our overseas business, particularly in Southeast Asia, India, and China.

  We will continue to put into practice the slogan given in our Corporate Philosophy -"To be enthusiastic, ambitious and sensitive"- and contribute to the realization of a responsible and sustainable society through our energy and environment businesses.

  In closing, we would like to thank our shareholders for their continued understanding and support.

June 2019