Fuji Electric Industry : Financial Results for the Year Ended January31, 2023

March 9, 2023

Financial Results for the Year Ended January 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]
	General Manager

Date of the board meeting for this period: March 9, 2023

Date of the general meeting of shareholders: April 27, 2023

1. Results of fiscal year 2023 (February 1, 2022 through January 31, 2023)

(1) Operating Results										(Unit: Millions	of Yen)
		Net sales		Operating income			Ordinary income
		Millions of yen	%	Millions of yen	%		Millions of yen		%
FY 2023		3,707	(0.4)		350	52.9			374		36.6
FY 2022		3,721	1.7		229	(20.2)		274		(10.6)
								Return	Ratio of		Ratio of
				Net income per share		Ordinary
					Operating
		Net income				on	income to
								income to
								equity	Total
								Net sales
				－basic		－diluted					assets
		Millions of yen	%	Yen		Yen			%	%		%
FY 2023		262	37.3	46.77		46.70			2.6	3.4		9.5
FY 2022		191	(6.9)	33.34		33.26			1.9	2.5		6.2

Note 1: Percentages for net sales, operating income etc. show increase (decrease) from the previous year.

Note 2: Equity in earnings of affiliates: No

(2) Financial Condition

	Total assets	Net assets	Equity ratio	Net assets per
	share
	Millions of yen	Millions of yen	%	Yen
FY 2023	10,869	10,167	93.5	1,831.24
FY 2022	11,004	10,286	93.4	1,789.50

Note: Equity capital

FY 2023

10,158 million yen

FY 2022

10,277 million yen

(3) Cash Flows

Net cash

Net cash

Net cash

Cash and cash

provided by (used in)

provided by (used in)

provided by (used in)

equivalents at end of

operating activities

investing activities

financing activities

period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY 2023

396

29

(413)

1,166

FY 2022

375

(251)

(182)

1,152

2.Dividends

Dividends per share

Payout ratio

Dividends to

Total dividends

shareholders'

Interim

Year-end

Annual

equity ratio

Yen

Yen

Yen

Millions of yen

%

%

FY 2022

16.00

16.00

32.00

183

96.0

1.8

FY 2023

16.00

16.00

32.00

177

68.4

1.7

FY 2024

16.00

16.00

32.00

－

96.2

－

(forecast)

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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	%
Interim	2,014	6.5	129	(32.1)	142	(31.2)
FY 2024	4,000	7.9	242	(30.8)	265	(29.1)
	Net income		Net income per share
	Millions of yen	%	Yen
Interim	99	(31.7)	17.92
FY 2024	184	(29.7)	33.28

Note 1: Percentages for net sales, operating income etc. for the FY 2024 show increase (decrease) from the previous year.

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

4.Others
(1)	Changes in the accounting policy		：Yes
(2)	Changes except (1)			：No
(3)	About number of shares
	Number of shares issued	：	FY 2023	6,669,000	FY 2022	6,669,000
	Treasury stock at end of each period ：	FY 2023	1,121,430	FY 2022	925,730
	Average number of shares	：	FY 2023	5,613,076	FY 2022	5,736,594

• 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).

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Business performance and Financial circumstances

1. Analysis of operating results

(1) General situation

During the fiscal year ending January 31, 2023, Japan's economy was showing signs of recovery in capital investment and production activities. However, it remains uncertain because of concerns about soaring raw material prices associated with geopolitical risk and about sluggish consumer spending due to rising domestic prices.

Under these circumstances, We focused our sales activity on the domestic market of electric power, general industries, electric railway and overseas market of Asia and Middle East. As a result of this performance, although the sales of Auxiliary switch and Test terminal block increased, the sales of Equipments for photovoltaic generation and Products for railway vehicles decreased.

The cumulative sales amount of this fiscal year was 3,707 million yen (decreased by 0.4% compared with the previous year).

Regarding the cumulative profit, the inventory was built up with increase of orders received, manufacturing costs decreased, the operating income was 350 million yen (increased by 52.9% compared with the previous year), the ordinary income was 374 million yen (increased by 36.6% compared with the previous year), and the net income was 262 million yen (increased by 37.3% compared with the previous year).

1. Operating results by segment Control switches
   Although the sales of Switches for railway vehicles decreased, the sales of Auxiliary switch increased. The sales amount was 995 million yen (increased by 2.2% compared with the previous year).
   Connecting devices
   Connector terminal block and Test terminal block were selling well. The sales amount was 1,611 million yen (increased by 6.3% compared with the previous year).
   Pilot lamps and Indicators
   Although the sales of Indicators increased, the sales of Indicator for railway vehicles and Multi-window Indicator decreased.
   The sales amount was 465 million yen (decreased by 2.5% compared with the previous year). Electronic devices
   The sales of Digital alarm and Indicator module were sluggish. However, the sales of I/O terminal and Annunciator relay increased.
   The sales amount was 598 million yen (increased by 8.4% 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 36 million yen (decreased by 80.4% compared with the previous year).
   Others
   The sales amount except for Electric control devices was 0 million yen.

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2. Forecast for the fiscal year ending January 31, 2024

The economic outlook for the next financial year, we expect that capital investment and production activities will recover, but it remains uncertain because of concerns ab out soaring raw material prices associated with geopolitical risk and about sluggish consumer spending due to rising domestic prices.

Electric power and heavy electrical machinery market, our main business environment, are changing drastically because it is expected to progress in construction of next -generation network and cross-regional interconnected grid to aim to achieve carbon neutral by 2050.

We will strengthen the revenue base through development of devices for digitalization, market launch of high-value-added products such as automatic equipment corresponding to population aging and working population declining.

Moreover, we will continue to increase our sales through exploring new markets by expanding our lineup in third party sales and promoting production equipment and mold manufacturing. The prospects of our business performances of next financial year are as follows.

The net sales is 4,000 million yen (increased by 7.9% compared with the previous year). Regarding the profit, we anticipate that soring material and energy prices, increasing in depreciation for mold investment, the operating income is 242 million yen (decreased by 30.8% compared with the previous year), the ordinary income is 265 million yen (decreased by 29.1% compared with the previous year), and the net income is 184 million yen (decreased by 29.7% compared with the previous year).

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Financial statements 1. Balance Sheets

				Thousands of Yen
	As of January31, 2022		As of January31, 2023
	Amount		％	Amount		％
（Assets）
Ⅰ Current assets
1.Cash and deposits	4,552,192			4,466,974
2.Notes and accounts receivable-trade	1,197,161			1,053,605
3.Electronically recorded monetary claims	311,988			322,929
4. Inventories	1,059,831			1,272,623
5. Others	39,880			35,934
Total current assets	7,161,055		65.1	7,152,067		65.8
Ⅱ Noncurrent assets
1.Property, plant and equipment	3,207,709			3,046,626
2.Intangible assets	9,510			13,005
3.Investments and other assets	625,915			658,281
Total noncurrent assets	3,843,136		34.9	3,717,913		34.2
Total assets	11,004,191		100.0	10,869,981		100.0
（Liabilities）
Ⅰ Current liabilities
1.Notes and accounts payable-trade	138,762			122,753
2.Short-term loans payable	120,000			120,000
3.Other current liabilities	344,401			335,670
Total current liabilities	603,164		5.5	578,423		5.3
Ⅱ Noncurrent liabilities
1.Other noncurrent liabilities	114,285			123,963
Total noncurrent liabilities	114,285		1.0	123,963		1.2
Total liabilities	717,449		6.5	702,387		6.5
（Net assets）
Ⅰ Shareholders' equity
1.Capital stock	1,087,250			1,087,250
2.Capital surplus	1,712,365			1,712,314
3.Retained earnings	8,286,226			8,368,109
4.Treasury stock	(1,027,968)			(1,255,990)
Total shareholders' equity	10,057,873		91.4	9,911,683		91.2
Ⅱ Valuation and translation adjustments
Valuation difference on	219,680			247,253
available-for-sale securities
Total valuation and translation	219,680		2.0	247,253		2.2
adjustments
Ⅲ Share option	9,187		0.1	8,656		0.1
Total net assets	10,286,741		93.5	10,167,593		93.5
Total liabilities and net assets	11,004,191		100.0	10,869,981		100.0

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