Management Information
Medium-Term Management Plan

FY2023 Medium-Term Management Plan "Reiwa Prosperity 2023"

Following global financial crisis in 2008, Fuji Electric began reinforcing its profit structure through business restructuring and has since been implementing management reforms to further expand its business and enhance its profitability.

Under our FY2023 Medium-Term Management Plan, we aim to establish a foundation for sustainable growth with net sales of ¥1 trillion and an operating margin of 8% or more, and pursing three key initiatives: “promote growth strategies,” “further improve profitability,” and “ongoing reinforcement of operating foundation.”

Medium-Term Management Targets

Targets for fiscal 2023 are net sales of ¥1 trillion and an operating margin of 8.0% or more. In regard to financial indicators, we have adopted targets that emphasize balancing growth potential, profitability, and efficiency with financial soundness. We aim to achieve a dividend payout ratio of 30% as soon as possible for shareholder returns.

Priority Issues for FY2023 Medium-Term Management Plan

FY2023 Medium-Term Management Plan focuses on "Promotion of growth strategies" and "Further improvement of profitability", and will also work globally, including overseas bases, on the management base that supports businesses such as the environment, human resources, and governance. We will also improve management quality from a long-term perspective.

Growth centered on Power Electronics Systems and Electronic Devices and Emphasizes on profits in Power Generation and Food and Beverage Distribution

As the need for improved energy efficiency and energy conservation toward the pursuit of the realization of a low-carbon society, we are seeing an expansion in business opportunities that allow Fuji Electric to leverage its strengths in power electronics technology and power semiconductor technology.

Power Electronics Systems will expand its system business overseas, mainly in China and Asia. Electronic Devices (power semiconductors) will grow due to recognizing the proliferation of electrified vehicles (xEVs) and the spread of renewable energy as growth opportunities. We will target expanding these sales and they account for about 80% of total consolidated sales and profits.

On the other hand, we will seek profitability for the Power Generation and Food and Beverage Distribution segments by promoting business portfolio reform through business selection and concentration, rather than pursuing sales expansion.

Concentrating management resources on Power Electronics Systems and power semiconductors

In order to reinforce strong businesses and expand business, we will concentrate management resources on Power Electronics Systems and power semiconductors, allocating 90% of capital investment and 80% of research and development (R&D) to the two businesses.

Although the plant and equipment investment in power semiconductors of ¥120 billion accounts for about half of its total, in regard to the automotive field (xEVs) in particular, we will steadily increase investment to strengthen production capacity while carefully assessing market trends and controlling risk.

Expand overseas sales and augmentating global manufacturing capabilities

With a focus on Southeast Asia, India, and China as key regions with high growth potential due to energy conservation and automation investments in industrial and social infrastructure and proliferation of electric vehicles (EVs), we will increase the overseas sales ratio from 25% to 35%.

We will increase sales in Asia, the region with the biggest sales volume, centered on Power Electronics Systems. Meanwhile, power semiconductors for EVs will be the driver of growth in China and Europe.

In parallel with expanding operations overseas, we will redouble efforts to promote local production and local consumption while augmenting global manufacturing capabilities in order to increase profits.


See below for details of the Medium-Term Management Plan. Regarding the content of one of the above key issues "Ongoing Reinforcement of Operating Foundations", please refer to the briefing materials for the Mid-term Management Plan (pages 17-21) and the president’s message (pages 9-10) of "Fuji Electric Report 2019".