Management Plan for FY2024
Fuji Electric Co., Ltd.
April 25, 2024
© Fuji Electric Co., Ltd.
Schedule for Financial Results, Management Plan and
Medium-term Management Plan Briefing
April 25 (Thu.) FY2023 Financial Results Briefing FY2024 Management Plan Briefing
May 23 (Thu.) FY2026 Medium-term Management Plan Briefing (Overview)
May 30 (Thu.) FY2026 Medium-term Management Plan Briefing (Segment explanations)
© Fuji Electric Co., Ltd. 2
Contents
1. | FY2024 Management Plan (YoY Comparison) | P. 4 |
2. | Reference | P. 17 |
© Fuji Electric Co., Ltd. 3
1. FY2024 Management Plan
© Fuji Electric Co., Ltd. 4
Operating Environment for FY2024 Management Plan
Opaque political and economic conditions
Market Outlook
Energy
- Consistently strong equipment upgrade demand from renewable energy, internet data center, and semiconductor factory applications
- Modest 2Q recovery seen both in Japan and overseas in ED&C Components business
Industry
Semiconductors
Food and
Beverage
Distribution
- Continuously strong plant system demand
- Recovery in factory automation components seen in Japan and overseas in second half of fiscal year
- Consistently strong demand related to electrified vehicle and renewable energy applications
- Recovery in industrial (factory automation) products seen in second half of fiscal year
- Vending machine demand unchanged year on year
- Conclusion of introduction phases for large-scale orders for store counter fixtures
© Fuji Electric Co., Ltd. 5
Summary of Consolidated Management Plan for FY2024 (YoY Comparison)
Targets of higher sales and profit along with operating profit ratio of more than 9.8%
FY2024 management plan beginning with minimal target
(Billion yen) | |||||
FY2023 | FY2024 | Change | |||
Results | Management Plan | ||||
Net Sales | 1,103.2 | 1,114.0 | 10.8 | ||
-18.2* | |||||
Operating Profit | 106.1 | 109.0 | 2.9 | ||
-4.1* | |||||
Operating Profit | 9.6% | 9.8 % | 0.2% | ||
Ratio | |||||
Profit Attributable to | 75.4 | 76.5 | 1.1 | ||
Owners of Parent | |||||
*Exchange rate effect | |||||
Financial Indicators | |||||
ROE | 13.5% | 12.3% | -1.2% | ||
ROIC | 11.5% | 10.6% | -0.8% | ||
Equity Ratio | 47.4% | 49.3% | 1.9% | ||
Net D/E Ratio※ | 0.2 times | 0.2 times | - | ||
※Net D/E ratio: Net interest-bearing debt ÷ Equity
Conservative forecast based on recent foreign exchange rates
US$ | EURO | RMB | |
FY2024 | ¥ 140.00 | ¥150.00 | ¥19.50 |
Exchange Rate | |||
Sensitivity of | -60 | +130 | +300 |
operating profit to | |||
foreign exchange | Million Yen | Million Yen | Million Yen |
influences | |||
- US$ and EURO: Impact of ¥1-fluctuation
RMB: Impact of 1% fluctuations
© Fuji Electric Co., Ltd. 6
Breakdown of Changes in Operating Results for FY2024
(YoY Comparison)
Higher profit as impacts of higher fixed costs outweighed by benefits of cost reductions as well as increases in sales and production volumes
(Billion Yen)
Increase in sales and | Increase in |
production volumes | fixed costs |
(15.4) | (▲17.8) | Exchange rate | Others | |
106.1 | effect | 109.0 | ||
(+9.4) | ||||
(▲4.1) | ||||
Labor Cost | -10.0 | Effect of higher product selling | +3.8 | |||||
prices | ||||||||
R&D | -3.5 | |||||||
Impacts of rising raw material | -4.4 | |||||||
Depreciation | prices | |||||||
-8.4 | ||||||||
and leases paid | Differences in model mix, | |||||||
Other expenses +4.1 | profitability between projects | +10.0 | ||||||
and cost reductions | ||||||||
FY2024 | ||||||||
FY2023 | ||||||||
Results | Management Plan |
© Fuji Electric Co., Ltd. 7
Net Sales and Operating Profit by Segment for FY2024
Higher operating results in all segments due to management approach emphasizing profits
(Billion Yen) | |||||||||||||||||
FY2023 | FY2024 | Change | |||||||||||||||
Results | Management Plan | ||||||||||||||||
Net | Operating | Operating | Net | Operating | Operating | Net | Operating | Operating | |||||||||
Sales | profit | profit ratio | Sales | profit | profit ratio | Sales | profit | profit ratio | |||||||||
Energy | 342.8 | 30.1 | 8.8% | 348.0 | 31.0 | 8.9% | 5.2 | 0.9 | 0.1% | ||||||||
-4.0* | -0.5* | ||||||||||||||||
Industry | 419.9 | 34.3 | 8.2% | 414.0 | 36.0 | 8.7% | -5.9 | 1.7 | 0.5% | ||||||||
-5.5* | -1.3* | ||||||||||||||||
Semiconductors | 228.0 | 36.2 | 15.9% | 245.0 | 37.0 | 15.1% | 17.0 | 0.8 | -0.8% | ||||||||
-8.3* | -2.3* | ||||||||||||||||
Food and | 107.3 | 8.8 | 8.2% | 102.0 | 9.2 | 9.0% | -5.3 | 0.4 | 0.8% | ||||||||
Beverage | |||||||||||||||||
Distribution | |||||||||||||||||
Others | 63.2 | 4.3 | 6.8% | 55.0 | 3.7 | 6.7% | -8.2 | -0.6 | -0.1% | ||||||||
Elimination | -57.9 | -7.6 | - | -50.0 | -7.9 | - | 7.9 | -0.3 | - | ||||||||
and Corporate | |||||||||||||||||
Total | 1,103.2 | 106.1 | 9.6% | 1,114.0 | 109.0 | 9.8% | 10.8 | 2.9 | 0.2% | ||||||||
-18.2* | -4.1* | ||||||||||||||||
*Exchange rate effect | |||||||||||||||||
© Fuji Electric Co., Ltd. 8 | |||||||||||||||||
Incoming Orders for FY2024 (YoY Comparison)
Orders unchanged year on year as increases in growth fields and industry component orders compensated for absence of large-scale orders recorded in previous fiscal year
By Segment | YoY | ||
1,109.8 | |||
1,110.0 +0.2 | |||
56.8 | 55.4 | -1.4 | Others |
107.4 | 101.8 | -5.6 | Food and |
Beverage | |||
Distribution |
217.8 244.6 +26.8 Semiconductors
419.0 | 407.2 -11.8Industry |
362.3 347.9 -14.4Energy
Elimination and | ||||||
-53.5 | -47.0 | +6.5 | Corporate | |||
FY2023 | FY2024 | |||||
Results | Management Plan |
(Billion Yen) | |
Expansion of operations in growth fields | +25.1 |
Energy (Energy Management, Power Supply and | +6.0 |
facility systems) | |
Semiconductors (Automotive) | +19.1 |
Recovery in demand for industrial components | +33.6 |
Energy (ED&C Components) | +11.1 |
Industry (FA※) | +14.8 |
Semiconductors (Industrial) | +7.7 |
※FA:Low voltage inverters, motors, measuring instruments | |
Decrease due to absence of large-scale orders | -56.4 |
recorded in previous fiscal year | |
Energy (Power Generation) | -32.0 |
Industry (Social Solutions and Equipment Construction) | -24.4 |
※FY2023 results reflect the organization reform conducted in FY2024
© Fuji Electric Co., Ltd. 9
Performance Outlook and Priority Measures by Segment
Energy / Industry
(Billion Yen) | Performance outlook | |||||||||||
342.8 | 348.0 | +5.2 | Net Sales | • Higher sales following growth in demand for ED&C | ||||||||
components | ||||||||||||
8.8% | 8.9% | Operating | • Increased profit due to benefits of higher sales volumes and | |||||||||
+0.1% profit ratio | ||||||||||||
Energy | 30.1 | cost reduction activities | ||||||||||
31.0 | +0.9 | profit | Priority measures | |||||||||
Operating | ||||||||||||
• Growth in orders in businesses related to renewable energy, | ||||||||||||
data centers, and semiconductor factories | ||||||||||||
FY2023 | FY2024 | • Expansion of ED&C components business following | ||||||||||
Results | Management Plan | introduction of new products | ||||||||||
(Billion Yen) | Performance outlook | |||||||||||
• Lower sales as a result of sales declines in equipment | ||||||||||||
419.9 | 414.0 | -5.9 | Net Sales | construction business | ||||||||
• Growth in profit due to benefits of higher sales volumes for | ||||||||||||
Operating | ||||||||||||
8.2% | 8.7% | +0.5% | factory automation and IT solutions products as well as cost | |||||||||
profit ratio | ||||||||||||
Industry | reduction activities | |||||||||||
34.3 | 36.0 | Operating | Priority measures | |||||||||
+1.7 | ||||||||||||
profit | • Reductions in lead times and costs achieved through | |||||||||||
acceleration of local production and consumption | ||||||||||||
• Expansion of operations in India and other overseas markets | ||||||||||||
FY2023 | FY2024 | |||||||||||
Results | Management Plan | • Growth of businesses related to manufacturing digital | ||||||||||
transformation solutions and decarbonization businesses | ||||||||||||
© Fuji Electric Co., Ltd. 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Fuji Electric Co. Ltd. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 07:14:24 UTC.