To Our Shareholders and Investors

Fuji Electric is moving ahead with the FY2018 Medium-Term Management Plan, Renovation 2018, which covers the three-year period ending with fiscal 2018. Acting in accordance with the plan’s basic policy of “further renovation of Fuji Electric,” we are implementing the growth strategies and pursuing improved profitability.

In fiscal 2017, the second year of this three-year plan, consolidated net sales increased ¥55.7 billion year on year, to ¥893.5 billion, and operating income rose ¥11.3 billion year on year, to ¥56.0 billion, making for an operating margin of 6.3%. In this manner, operating income and the operating margin reached new record highs, achieving the targets of the medium-term management plan target a year ahead of schedule.

In consideration of these performance trends, we decided to issue a year-end dividend of ¥8 per share, which, combined with the interim dividend, will make for a total of ¥14 per share for fiscal 2017, an increase of ¥3 per share over the previous fiscal year.

Turning eyes to the international society, we will see a movement to realize a sustainable society by achieving economic growth while also addressing social issues pertaining to energy, the environment, human rights, and other areas. This movement is exemplified by the adoption of the Paris Agreement and the United Nations Sustainable Development Goals. Fuji Electric’s corporate philosophy and management policies emphasize its commitment to contributing to the creation of a sustainable society through its energy and environment businesses. In other words, our core principles are congruent with the contemporary needs of society and customers.

Looking to the future, Fuji Electric will advance a concerted effort to enhance its manufacturing capabilities and reenergize the Companywide Pro-7 Activities aimed at improved work quality. Our goal in these efforts will be to earn greater trust from stakeholders and continue the global provision of products customers trust.

In addition to these efforts, fiscal 2018 will also see use actively investing in the strengthening of our power electronics systems business and the expansion of our power semiconductors businesses as we seek to complete the current medium-term management plan. At the same time, we will begin formulating a new, five-year medium-term management plan set to end with fiscal 2023, when Fuji Electric will celebrate the 100th anniversary of its founding.

Fuji Electric stands committed contributing to the realization of a responsible and sustainable society through its business in order to address the energy and environmental issues that threaten the earth.

June 2018