Fuji Electric Industry : Financial Results for the Second Quarter of the Year 2024

September 5, 2023

Financial Results for the Second Quarter of the Year 2024

(Six months ended on July 31, 2023)

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 5, 2023

1.Second quarter financial results for the six months ended on July 31(February 1,2023 through July

31,2023)
(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 2024		1,824	(3.5)	200	5.1	213	2.7
2nd Q.FY 2023		1,890	3.1	190	125.5	207	80.1
		Net income		Net income per share	Net income per share
			－basic		－diluted
		Millions of yen	%	Yen		Yen
2nd Q.FY 2024		218	50.1	39.38		39.32
2nd Q.FY 2023		145	79.6	25.64		25.60

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 2024	11,120	10,335	92.9	1,860.23
FY 2023	10,869	10,167	93.5	1,831.24

Note: Equity capital						2nd Q.FY 2024	10,326 million yen
						FY 2023		10,158 million yen
2.Dividends
				Dividend per share
		First quarter	Second quarter			Third quarter		Year-end		Annual
		Yen	Yen			Yen		Yen		Yen
FY 2023		－	16.00			－		16.00		32.00
FY 2024		－	16.00
FY 2024 (forecast)						－		16.00		32.00

Note : Revision of dividends forecast for this period：No

3.Forecast of operating results for Fiscal Year 2024(February 1,2023 through January 31,2024)

	Net sales		Operating income		Ordinary income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY 2024	3,720	0.3	330	(5.7)	353	(5.7)
	Net income		Net income per share
	Millions of yen	%	Yen
FY 2024	304	16.1	54.90

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 2024	6,669,000	FY 2023	6,669,000
	Treasury stock at end of each period ：	2nd Q.FY 2024	1,117,630	FY 2023	1,121,430
	Average number of shares	：	2nd Q.FY 2024	5,549,207	2nd Q.FY 2023	5,679,777

• Note with respect to "Forecast of operating results for Fiscal Year 2024"
  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 6, 2023.

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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, 2024, Japan's economy slowly recovered because of these factors like improvements in consumer spending and corporate earnings. However, it remains uncertain including concerns about rising domestic prices continuously.

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 Telephone relay and I/O terminal increased, the sales of Terminal blocks and Connector terminal block decreased.

The cumulative sales amount in the first six months of the fiscal year was 1,824 million yen (decreased by 3.5% compared with the previous year).

Regarding the cumulative profit, the net sales fell below last year's, inventory was built up, selling, general and administrative expenses decreased, the operating income was 200 million yen (increased by 5.1% compared with the previous year), the ordinary income was 213 million yen (increased by 2.7% compared with the previous year), and recorded 102 million yen under gain on sales of investment securities in extraordinary income, the net income was 218 million yen (increased by 50.1% compared with the previous year).

1. Products sales Control switches
   Although the sales of Cam switch increased, the sales of Auxiliary Switch and Switches for railway vehicles decreased. The sales amount was 455 million yen (decreased by 11.3% compared with the previous year).
   Connecting devices
   The sales of Large current busbar connector increased. However, the sales of Terminal blocks and Connector terminal block decreased. The sales amount was 740 million yen (decreased by 10.7% compared with the previous year).
   Pilot lamps and Indicators
   The sales of Multi-window Indicator and Indicators were sluggish. The sales amount was 214 million yen (decreased by 9.0% compared with the previous year).
   Electronic devices
   Telephone relay and I/O terminal were selling well. The sales amount was 373 million yen (increased by 29.6% compared with the previous year).
   Third party sales
   Because of the increase in sales of Equipments for photovoltaic generation and parts, the sales amount was 31 million yen (increased by 34.4% compared with the previous year).
   Others
   The sales amount except for Electric control devices was 8 million yen.

2. Description on business performance forecast

As for the prospects of our business performances of January 2024, there have been no changes in the prospects announced by the brief note on August 29, 2023.

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of July 31,
	2023	2023
	Amount	Amount
（Assets）
Ⅰ Current assets
1.Cash and deposits	4,466,974	4,640,121
2.Notes and accounts receivable-trade	1,053,605	1,107,507
3.Electronically recorded monetary claims	322,929	295,334
4. Finished goods	255,512	296,604
5. Work in process	453,508	475,975
6. Raw materials	563,602	557,516
7. Others	35,934	53,909
Total current assets	7,152,067	7,426,970
Ⅱ Noncurrent assets
(1) Property, plant and equipment
1.Buildings, net	1,509,720	1,457,674
2.Land	1,347,627	1,347,627
3.Others, net	189,279	197,230
Total property, plant and equipment	3,046,626	3,002,532
(2) Intangible assets	13,005	10,606
(3) Investments and other assets
1.Investment securities	609,408	651,031
2.Others	48,873	29,303
Total investments and other assets	658,281	680,334
Total noncurrent assets	3,717,913	3,693,473
Total assets	10,869,981	11,120,444

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3.Non-consolidated quarterly balance sheets

		Thousands of Yen
	As of January 31,	As of July 31,
	2023	2023
	Amount	Amount
（Liabilities）
Ⅰ Current liabilities
1.Accounts payable-trade	122,753	114,049
2.Short-term loans payable	120,000	120,000
3.Income taxes payable	75,768	110,625
4.Provision for bonuses	55,566	53,003
5.Provision for directors' bonuses	－	2,025
6.Provision for product warranties	84,914	70,181
7.Others	119,421	183,517
Total current liabilities	578,423	653,402
Ⅱ Noncurrent liabilities
1.Provision for retirement benefits	108,523	115,698
2.Others	15,440	15,874
Total noncurrent liabilities	123,963	131,572
Total liabilities	702,387	784,975
（Net assets）
Ⅰ Shareholders' equity
1.Capital stock	1,087,250	1,087,250
2.Capital surplus	1,712,314	1,712,257
3.Retained earnings	8,368,109	8,497,859
4.Treasury stock	(1,255,990)	(1,251,734)
Total shareholders' equity	9,911,683	10,045,633
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities	247,253	281,179
Total valuation and translation adjustments	247,253	281,179
Ⅲ Share option	8,656	8,656
Total net assets	10,167,593	10,335,468
Total liabilities and net assets	10,869,981	11,120,444

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