Below is the summary announced on Apr 27, 2022 of financial results for FY2021.

In the fiscal year ended March 31, 2020, Fuji Electric launched Reiwa Prosperity 2023, a new five-year medium-term management plan slated to conclude with the fiscal year ending March 31, 2024, the year in which we will celebrate the centennial anniversary of Fuji Electric’s founding. Under this plan, the Company is implementing growth strategies prescribing the concentration of resources on growth fields, namely the power electronics and power semiconductor businesses, and the expansion of overseas businesses.

In the fiscal year ended March 31, 2022, an ongoing recovery trend was seen in capital investment in the manufacturing industry that was stimulated by the global decarbonization movement and the resumption of economic activities. Against this backdrop, a consistently high level of demand was seen for machine tools while demand for other articles rose rapidly in response to the growing needs for automobile electrification and energy saving. Nevertheless, the outlook for the operating environment remains opaque due to rising material prices and shortages as well as other global supply chain issues resulted from the COVID-19 pandemic and changes in the international political climate.

Production capacity increases for power semiconductors were instituted ahead of schedule in response to robust demand while steps were taken to optimize supply chains, including forming relationships with multiple suppliers and altering designs to use alternative parts in order to address the difficulties in procuring certain parts. Due to these factors, large increases were seen in the sales of the Power Electronics Energy, Semiconductor, and Food and Beverage Distribution segments, resulting in consolidated net sales in the fiscal year ended March 31, 2022, rising ¥34.3 billion year on year, to ¥910.2 billion.

Although high material prices impacted income, overall income benefited from sales volume growth coupled with the benefits of increases to product sales prices and cost reduction activities centered on augmentations to factories. As a result, consolidated operating income rose ¥26.2 billion year on year, to ¥74.8 billion; ordinary income was up ¥28.9 billion, to ¥79.3 billion; and net income attributable to owners of parent increased ¥16.7 billion, to ¥58.7 billion. All three figures represented record highs.

In addition, an operating margin of 8.2% was posted, accomplishing the target of 8% or more put forth in the medium-term management plan two years ahead of schedule.

Net sales: ¥240.6 billion (up 15% year on year)
Operating income: ¥21.4 billion (up ¥7.3 billion year on year)

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

Net sales: ¥314.3 billion (down 9% year on year)
Operating income: ¥23.7 billion (up ¥1.9 billion year on year)

In the Power Electronics Industry segment, net sales were down year on year, despite demand growth in the automation systems business and other areas, due to the absence of large-scale orders recorded in the IT solutions business in the previous fiscal year. Conversely, operating income was up year on year as the reduction to the income of the IT solutions business was outweighed by the benefits of cost reduction activities and alterations to designs to use alternative parts in order to address the difficulties in procuring certain parts.

• In the automation systems business, net sales and operating results improved year on year due to the higher demand seen centered on low-voltage inverters and factory automation components.
• In the social solutions business, net sales were down year on year, despite an increase in large-scale projects for electrical equipment for railcars, because of a reduction in orders for exhaust gas cleaning systems for ships. Operating results, meanwhile, improved year on year due to differences in profitability between projects.
• In the equipment construction business, net sales and operating results improved year on year due to higher demand for electrical and air-conditioning equipment construction.
• 在我T solutions business, net sales and operating results decreased year on year due to the absence of the large-scale public- and academic-sector projects recorded in the previous fiscal year.

Net sales: ¥178.8 billion (up 14% year on year)
Operating income: ¥27.1 billion (up ¥9.5 billion year on year)

In the semiconductor business, net sales increased year on year, despite the repercussions of withdrawing from magnetic disk operations, due to production capacity increases undertaken in response to substantial growth in demand for power semiconductors for electrified vehicles (xEVs) and for industrial applications. As a result, high operating ratios were able to be maintained leading to massive increases in sales volumes and subsequently improvements in operating results, regardless of the rise in expenses for bolstering power semiconductor production capacity and for conducting research and development.

Net sales: ¥78.6 billion (down 2% year on year)
Operating income: ¥3.1 billion (up ¥0.6 billion year on year)

• In the power generation business, net sales were down year on year due to the rebound from a large-scale renewable energy project recorded in the previous fiscal year. Operating results were up year on year because of differences in profitability between projects and the benefits of cost reductions activities.

Net sales: ¥90.8 billion (up 19% year on year)
Operating loss: ¥3.0 billion (compared with operating loss of ¥5.3 billion in the previous equivalent period)

• In the vending machine business, net sales were up year on year following growth in demand in Japan and overseas while operating results improved due to the higher sales and the benefits of cost reduction activities.
• In the store distribution business, net sales and operating results were up year on year because of an increase in demand for store equipment for convenience stores.

Net sales: ¥54.7 billion (up 4% year on year)
Operating income: ¥2.8 billion (up ¥0.6 billion year on year)

• Note:

  • Effective April 1, 2021, the Electronic Devices segment was renamed the Semiconductor segment.
  • Effective July 1, 2021, the Power Electronics Systems Energy segment was renamed the Power Electronics Energy segment and the Power Electronics Systems Industry segment was renamed the Power Electronics Industry segment.

Forecasts for consolidated business results in the fiscal year ending March 31, 2023, are as follows.

Furthermore, forecasts for the fiscal year ending March 31, 2023, assume exchange rates of US$1 = ¥120, €1 = ¥133, RMB1 = ¥19.