Fuji Electric Industry : Financial Results for the Second Quarter of the Year 2023

September 6, 2022

Financial Results for the Second Quarter of the Year 2023

(Six months ended on July 31, 2022)

Company:	FUJI ELECTRIC INDUSTRY CO., LTD.	Stock:	Tokyo Stock Exchange
Code Number:	6654	URL:	https://www.fujidk.co.jp
Coordinator:	Noriko Shimomura	Head Office:	Kyoto, JAPAN
	Director and Executive Officer	Telephone:	[phone]

Date of the board meeting for this period: September 6, 2022

1.Second quarter financial results for the six months ended on July 31(February 1,2022 through July

31,2022)
(1) Operating Results					(Unit: Millions	of Yen)
		Net sales		Operating income	Ordinary income
		Millions of yen	%	Millions of yen	%	Millions of yen	%
2nd Q.FY 2023		1,890	3.1	190	125.5	207	80.1
2nd Q.FY 2022		1,833	(1.1)	84	(54.0)	115	(39.7)
		Net income		Net income per share	Net income per share
			－basic		－diluted
		Millions of yen	%	Yen		Yen
2nd Q.FY 2023		145	79.6	25.64		25.60
2nd Q.FY 2022		81	(39.2)	14.15		14.11

Note: Percentages for net sales, operating income etc. show increase (decrease) from previous year's second quarter.

(2) Financial Condition

	Total assets	Net assets	Equity ratio	Net assets per
	share
	Millions of yen	Millions of yen	%	Yen
2nd Q.FY 2023	10,936	10,139	92.6	1,826.19
FY 2022	11,004	10,286	93.4	1,789.50

Note: Equity capital						2nd Q.FY 2023	10,129 million yen
						FY 2022		10,277 million yen
2.Dividends
				Dividend per share
		First quarter	Second quarter			Third quarter		Year-end		Annual
		Yen	Yen			Yen		Yen		Yen
FY 2022		－	16.00			－		16.00		32.00
FY 2023		－	16.00
FY 2023 (forecast)						－		16.00		32.00

Note : Revision of dividends forecast for this period：No

3.Forecast of operating results for Fiscal Year 2023(February 1,2022 through January 31,2023)

	Net sales		Operating income		Ordinary income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY 2023	3,900	4.8	291	27.1	313	14.3
	Net income		Net income per share
	Millions of yen	%	Yen
FY 2023	217	13.9	38.81

Note : Revision of operating results forecast for this period：No

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4.Others
(1)	Application of special accounting policy for quarterly financial reporting ：No
(2)	Changes in the accounting policy		：Yes
(3)	Changes except (2)			：No
(4)	About number of shares
	Number of shares issued	：	2nd Q.FY 2023	6,669,000	FY 2022	6,669,000
	Treasury stock at end of each period ：	2nd Q.FY 2023	1,121,930	FY 2022	925,730
	Average number of shares	：	2nd Q.FY 2023	5,679,777	2nd Q.FY 2022	5,730,529

• Note with respect to "Forecast of operating results for Fiscal Year 2023"
  Forecasts announced by the company referred to above be prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties.
  Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts (earnings forecast, dividend forecast, and other forecasts).
  Supplementary financial materials will be posted on our web site on September 7, 2022.

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Qualitative information / Financial affairs

1.Description on business performance

(1) General situation

During the first six months of the fiscal year ending January 31, 2023, Japan's economy was showing signs of recovery in consumer spending and capital investment. However, it remains uncertain because of concerns about soaring raw material prices associated with geopolitical risk and about volatility in financial markets.

Under these circumstances, We focused our sales activity on the domestic market of electric power, public facilities, general industries, electric railway and overseas market of Asia and the Middle East. As a result of this performance, although the sales of Switches for electric power and railway vehicles decreased, the sales of Connector terminal block and Test terminal block increased.

The cumulative sales amount in the first six months of the fiscal year was 1,890 million yen (increased by 3.1% compared with the previous year).

Regarding the cumulative profit, the net sales exceeded last year's, inventory was built up with increase of orders received, manufacturing costs decreased, the operating income was 190 million yen (increased by 125.5% compared with the previous year), the ordinary income was 207 million yen (increased by 80.1% compared with the previous year), and the net income was 145 million yen (increased by 79.6% compared with the previous year).

1. Products sales Control switches
   Although the sales of Auxiliary switch increased, the sales of Cam switch and Switches for railway vehicles decreased. The sales amount was 513 million yen (decreased by 0.7% compared with the previous year).
   Connecting devices
   Connector terminal block and Test terminal block were selling well. The sales amount was 829 million yen (increased by 13.3% compared with the previous year).
   Pilot lamps and Indicators
   Although the sales of Indicators increased, the sales of LED Indicator and Multi-window Indicator decreased.
   The sales amount was 235 million yen (decreased by 0.8% compared with the previous year). Electronic devices
   The sales of Digital alarm and Indicator module were sluggish. However, the sales of Interface unit and Annunciator relay increased.
   The sales amount was 288 million yen (increased by 3.0% compared with the previous year). Third party sales
   Although the sales of parts increased, the sales of Equipments for photovoltaic generation decreased. The sales amount was 23 million yen (decreased by 58.4% compared with the previous year).
   Others
   The sales amount except for Electric control devices was 0 million yen.

2. Description on business performance forecast

As for the prospects of our business performances of January 2023, there have been no changes in the prospects announced by the brief note on August 29, 2022.

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of July 31,
	2022	2022
	Amount	Amount
（Assets）
Ⅰ Current assets
1.Cash and deposits	4,552,192	4,391,566
2.Notes and accounts receivable-trade	1,197,161	1,191,710
3.Electronically recorded monetary claims	311,988	342,255
4. Finished goods	163,762	210,560
5. Work in process	397,250	412,937
6. Raw materials	498,818	551,375
7. Others	39,880	50,214
Total current assets	7,161,055	7,150,619
Ⅱ Noncurrent assets
(1) Property, plant and equipment
1.Buildings, net	1,615,507	1,562,585
2.Land	1,347,627	1,347,627
3.Others, net	244,574	211,442
Total property, plant and equipment	3,207,709	3,121,655
(2) Intangible assets	9,510	7,538
(3) Investments and other assets
1.Investment securities	577,579	611,488
2.Others	48,336	45,671
Total investments and other assets	625,915	657,160
Total noncurrent assets	3,843,136	3,786,354
Total assets	11,004,191	10,936,974

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of July 31,
	2022	2022
	Amount	Amount
（Liabilities）
Ⅰ Current liabilities
1.Accounts payable-trade	138,762	152,076
2.Short-term loans payable	120,000	120,000
3.Income taxes payable	54,359	76,137
4.Provision for bonuses	58,533	52,939
5.Provision for directors' bonuses	－	990
6. Provision for product warranties	114,019	102,360
7. Others	117,489	157,860
Total current liabilities	603,164	662,364
Ⅱ Noncurrent liabilities
1.Provision for retirement benefits	100,732	120,461
2.Others	13,553	14,983
Total noncurrent liabilities	114,285	135,444
Total liabilities	717,449	797,809
（Net assets）
Ⅰ Shareholders' equity
1.Capital stock	1,087,250	1,087,250
2.Capital surplus	1,712,365	1,712,342
3.Retained earnings	8,286,226	8,339,937
4.Treasury stock	(1,027,968)	(1,256,550)
Total shareholders' equity	10,057,873	9,882,980
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities	219,680	246,996
Total valuation and translation adjustments	219,680	246,996
Ⅲ Share option	9,187	9,187
Total net assets	10,286,741	10,139,164
Total liabilities and net assets	11,004,191	10,936,974

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