Top Message

For fiscal 2017, we have set forth a policy of working to construct growth foundations through business model renovation, and we plan to advance initiatives to strengthen the power electronics systems business, further enhance manufacturing capabilities, and re-energize Pro-7 Activities.

To Our Shareholders and Investors

In April 2016, we unveiled 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 growth strategies while also improving profitability.

Fuji Electric will celebrate the 100th anniversary of its founding in 2023. In light of this momentous occasion, we established the management policy of “contributing to the creation of sustainable societies through our energy and environment businesses,” based on which we advanced operational reforms in pursuit of further growth. In addition, we established our new power electronics systems business, which is tasked with expanding its operations with systems that utilize competitive components, and launched a new organizational structure in fiscal 2017.

To expand overseas operations, we are steadily capitalizing on the benefits of the corporate acquisitions we have conducted to date. For example, our thermal power generation plant after sales businesses have spread outside of North America. In the power electronics systems business, we have made progress in the localization of engineering and manufacturing functions in Asia. Also, the vending machine business saw the start of construction of a new factory in Dalian designed to double our production capacity in China. In this manner, we have been increasing local production and local consumption.

Looking at finances, we reviewed our stockholdings with the aim of further stabilizing the Company’s financial position, and thus decided to sell a portion of our holding in FUJITSU LIMITED. The capital generated through this sale will be used to conduct additional mergers and acquisitions and otherwise advance growth strategies.

Consolidated operating performance in fiscal 2016 included net sales of ¥837.8 billion, up ¥24.2 billion year on year, and operating income of ¥44.7 billion, down ¥0.3 billion. In addition, net income attributable to owners of parent rose ¥10.3 billion and reached a new record high of ¥41.0 billion.

In consideration of these performance trends, we decided to issue a year-end dividend of ¥6 per share, which, combined with the interim dividend, will make for a total of ¥11 per share for fiscal 2016, an increase of ¥1 per share over the previous fiscal year.

For fiscal 2017, we have set forth a policy of working to construct growth foundations through business model renovation, and we plan to advance initiatives to strengthen the power electronics systems business, further enhance manufacturing capabilities, and re-energize Pro-7 Activities.

I ask investors and other stakeholders for their continuing support and understanding of these endeavors.

June 2017