Fuji Electric Industry : Financial Results for the Year Ended January31, 2024

March 12, 2024

Financial Results for the Year Ended January 31, 2024

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 12, 2024

Date of the general meeting of shareholders: April 24, 2024

1. Results of fiscal year 2024 (February 1, 2023 through January 31, 2024)

(1) Operating Results										(Unit: Millions	of Yen)
		Net sales		Operating income			Ordinary income
		Millions of yen	%	Millions of yen	%		Millions of yen		%
FY 2024		3,723	0.4		399	13.9			425		13.7
FY 2023		3,707	(0.4)		350	52.9			374		36.6
								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 2024		349	33.3	63.05		62.95			3.4	3.8		10.7
FY 2023		262	37.3	46.77		46.70			2.6	3.4		9.5

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 2024	11,279	10,446	92.5	1,880.31
FY 2023	10,869	10,167	93.5	1,831.24

Note: Equity capital

FY 2024

10,438 million yen

FY 2023

10,158 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 2024

446

(103)

(178)

1,335

FY 2023

396

29

(413)

1,166

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 2023

16.00

16.00

32.00

177

68.4

1.7

FY 2024

16.00

19.00

35.00

194

55.5

1.9

FY 2025

16.00

16.00

32.00

－

107.9

－

(forecast)

Note: We returned a commemorative dividend of 3 yen as the year-end dividend for fiscal 2024.

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3.Forecast of operating results for Fiscal Year 2025(February 1, 2024 through January 31, 2025)

	Net sales		Operating income	Ordinary income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
Interim	1,884	3.3	90	(54.9)	99	(53.4)
FY 2025	3,785	1.7	218	(45.4)	236	(44.4)
	Net income		Net income per share
	Millions of yen	%	Yen
Interim	69	(68.3)	12.47
FY 2025	164	(52.9)	29.67

Note 1: Percentages for net sales, operating income etc. for the FY 2025 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 2024	6,669,000	FY 2023	6,669,000
	Treasury stock at end of each period ：	FY 2024	1,117,630	FY 2023	1,121,430
	Average number of shares	：	FY 2024	5,550,297	FY 2023	5,613,076

• Note with respect to "Forecast of operating results for Fiscal Year 2025"
  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, 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 continuous domestic price increases and overseas geopolitical risks.

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

The cumulative sales amount of this fiscal year was 3,723 million yen (increased by 0.4% compared with the previous year).

Regarding the cumulative profit, the net sales exceeded last year's, selling, general and administrative expenses decreased, the operating income was 399 million yen (increased by 13.9% compared with the previous year), the ordinary income was 425 million yen (increased by 13.7% compared with the previous year), and recorded 104 million yen under gain on sales of investment securities in extraordinary income, the net income was 349 million yen (increased by 33.3% compared with the previous year).

1. Operating results by segment Control switches
   The sales of Auxiliary Switches and Switches for railway vehicles decreased, the sales amount was 919 million yen (decreased by 7.6% compared with the previous year).
   Connecting devices
   The sales of Large current busbar connector and Test terminal block increased. However, the sales of Terminal blocks and Connector terminal block decreased. The sales amount was 1,532 million yen (decreased by 4.9% compared with the previous year).
   Pilot lamps and Indicators
   Although the sales of Indicator for railway vehicles increased, the sales of Multi-window Indicator and Indicators decreased. The sales amount was 436 million yen (decreased by 6.2% compared with the previous year).
   Electronic devices
   Telephone relay and I/O terminal were selling well. The sales amount was 724 million yen (increased by 21.1% 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 102 million yen (increased by 182.4% compared with the previous year).
   Others
   The sales amount except for Electric control devices was 8 million yen.

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2. Forecast for the fiscal year ending January 31, 2025

The economic outlook for the next financial year, it will remain uncertain including concerns about continuous domestic price increases, rises in personnel expenses because of wage increases, and overseas geopolitical risks.

The heavy electrical machinery market, our main business environment, is changing drastically and rapidly because the development of cross -regional interconnected grid is in progress for constructing next-generation power network centered on digitalization of system, utilizing renewable energy, and strengthening power grid resilience.

We will continue to increase our sales through cultivating "the heavy electrical equipment market", "the railway rolling stock market", and "overseas markets". And we will further promote products development suited to user needs including digitalization and manpower -saving and labor-saving.

The prospects of our business performances of next financial year are as fol lows.

The net sales is 3,785 million yen (increased by 1.7% compared with the previous year). Regarding the profit, soring material prices associated with domestic increasing prices, increases in depreciation for mold investment, and rises in personnel expenses because of investment in human capital, the operating income is 218 million yen (decreased by 45.4% compared with the previous year), the ordinary income is 236 million yen (decreased by 44.4% compared with the previous year), and the net income is 164 million yen (decreased by 52.9% compared with the previous year).

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Financial statements 1. Balance Sheets

				Thousands of Yen
	As of January31, 2023		As of January31, 2024
	Amount		％	Amount		％
（Assets）
Ⅰ Current assets
1.Cash and deposits	4,466,974			4,635,420
2.Notes and accounts receivable-trade	1,053,605			1,141,675
3.Electronically recorded monetary claims	322,929			311,996
4. Inventories	1,272,623			1,315,368
5. Others	35,934			42,055
Total current assets	7,152,067		65.8	7,446,515		66.0
Ⅱ Noncurrent assets
1.Property, plant and equipment	3,046,626			2,960,845
2.Intangible assets	13,005			7,529
3.Investments and other assets	658,281			864,292
Total noncurrent assets	3,717,913		34.2	3,832,666		34.0
Total assets	10,869,981		100.0	11,279,181		100.0
（Liabilities）
Ⅰ Current liabilities
1.Notes and accounts payable-trade	122,753			126,894
2.Short-term loans payable	120,000			120,000
3.Other current liabilities	335,670			426,428
Total current liabilities	578,423		5.3	673,322		6.0
Ⅱ Noncurrent liabilities
1.Other noncurrent liabilities	123,963			158,909
Total noncurrent liabilities	123,963		1.2	158,909		1.4
Total liabilities	702,387		6.5	832,232		7.4
（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			8,540,450
4.Treasury stock	(1,255,990)			(1,251,734)
Total shareholders' equity	9,911,683		91.2	10,088,223		89.4
Ⅱ Valuation and translation adjustments
Valuation difference on	247,253			350,069
available-for-sale securities
Total valuation and translation	247,253		2.2	350,069		3.1
adjustments
Ⅲ Share option	8,656		0.1	8,656		0.1
Total net assets	10,167,593		93.5	10,446,949		92.6
Total liabilities and net assets	10,869,981		100.0	11,279,181		100.0

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2. Statements of Income

				Thousands of Yen
	As of January31, 2023		As of January31, 2024
	Amount		％	Amount		％
Ⅰ Net sales	3,707,244		100.0	3,723,518		100.0
Ⅱ Cost of sales	2,415,005		65.1	2,399,237		64.4
Gross profit	1,292,239		34.9	1,324,280		35.6
Ⅲ Selling, general, and	941,291		25.4	924,693		24.9
administrative expenses
Operating income	350,948		9.5	399,587		10.7
Ⅳ Non-operating income	30,257		0.8	33,190		0.9
Ⅴ Non-operating expenses	6,708		0.2	7,073		0.2
Ordinary income	374,497		10.1	425,705		11.4
Ⅵ Extraordinary income	－			104,940		2.8
Ⅶ Extraordinary loss	0		0.0	24,089		0.6
Income before income taxes	374,497		10.1	506,555		13.6
Income taxes	111,968		3.0	156,631		4.2
Net income	262,528		7.1	349,923		9.4

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3. Statements of Changes in Net Assets

				(Unit: Thousands of Yen)
			Shareholders' equity
	Common	Capital surplus	Retained	Treasury stock	Total shareholders'
	stock	earnings	equity
Balance at beginning of	1,087,250	1,712,314	8,368,109	(1,255,990)	9,911,683
current period
Changes of items during
period
Dividends of surplus			(177,583)		(177,583)
Net income			349,923		349,923
Purchase of treasury shares					－
Disposal of treasury shares		(57)		4,256	4,199
Net changes of items other
than shareholders' equity
Total changes of items	－	(57)	172,340	4,256	176,539
during period
Balance at end of current	1,087,250	1,712,257	8,540,450	(1,251,734)	10,088,223
period

	Valuation and translation adjustments
	Valuation difference on	Total valuation and	Share option	Total net assets
	available-for-sale	translation
	securities	adjustments
Balance at beginning of	247,253	247,253	8,656	10,167,593
current period
Changes of items during
period
Dividends of surplus				(177,583)
Net income				349,923
Purchase of treasury				－
shares
Disposal of treasury shares				4,199
Net changes of items other	102,816	102,816		102,816
than shareholders' equity
Total changes of items	102,816	102,816	－	279,356
during period
Balance at end of current	350,069	350,069	8,656	10,446,949
period

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4. Statements of Cash Flows

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
Description	Amount	Amount
Ⅰ．Net cash provided by (used in) operating activities
Income before income taxes	374,497	506,555
Depreciation and amortization	225,813	215,021
Increase (decrease) in provision for directors' bonuses	－	6,100
Increase (decrease) in provision for retirement benefits	7,791	14,767
Interest and dividends income	(16,413)	(16,363)
Interest expenses	976	995
Increase (decrease) in provision for product warranties	(29,105)	(12,752)
Loss (gain) on sales of investment securities	－	(104,940)
Loss (gain) on investments in partnership	5,322	6,077
Subsidy income	(7,340)	(5,611)
Loss on retirement of property, plant and equipment	0	875
Loss on retirement of intangible fixed assets	－	736
Decrease (increase) in notes and accounts receivable-trade	132,615	(77,137)
Decrease (increase) in inventories	(212,792)	(42,744)
Increase (decrease) in notes and accounts payable-trade	(16,008)	4,140
Others	(3,301)	48,111
Subtotal	462,053	543,831
Interest and dividends received	16,321	16,334
Interest expenses paid	(976)	(1,000)
Proceeds from subsidy income	7,340	5,611
Income taxes paid	(88,210)	(117,857)
Net cash provided by (used in) operating activities	396,529	446,919
Ⅱ． Payment for time deposits	(5,600,003)	(5,400,005)
Proceeds from time deposits	5,700,001	5,400,003
Purchase of property, plant and equipment	(65,416)	(115,144)
Purchase of intangible assets	(7,610)	－
Purchase of investment securities	－	(109,716)
Proceeds from sales of investment securities	－	115,120
Others	2,500	6,400
Net cash provided by (used in) investing activities	29,470	(103,342)
Ⅲ． Cash dividends paid	(180,850)	(178,482)
Purchase of treasury shares	(232,800)	－
Others	0	－
Net cash provided by (used in) financing activities	(413,650)	(178,482)
Ⅳ．Effect of exchange rate change on cash and cash equivalents	2,430	3,349
Ⅴ．Net increase (decrease) in cash and cash equivalents	14,780	168,444
Ⅵ．Cash and cash equivalents-Beginning	1,152,190	1,166,971
Ⅶ．Cash and cash equivalents-Ending	1,166,971	1,335,415

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5. Others

(1) Actual of orders

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
Products category	Amount	Amount
Control switches	1,027,624	992,949
Connecting devices	1,615,132	1,483,406
Pilot lamps and Indicators	445,709	557,820
Electronic devices	811,893	581,574
Third party sales	64,402	126,925
Others	6,315	1,908
Total	3,971,078	3,744,583

(2) Backlog of orders

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
Products category	Amount	Amount
Control switches	349,803	423,095
Connecting devices	368,720	319,722
Pilot lamps and Indicators	155,509	276,341
Electronic devices	573,888	431,219
Third party sales	45,828	70,736
Others	6,300	－
Total	1,500,050	1,521,115

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(3) Sales

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
Products category	Amount	Amount
Control switches	995,550	919,657
Connecting devices	1,611,606	1,532,404
Pilot lamps and Indicators	465,692	436,988
Electronic devices	598,252	724,242
Third party sales	36,126	102,017
Others	15	8,208
Total	3,707,244	3,723,518

• Distribution channel

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
	Amount	Amount
Domestic sales	3,379,172	3,367,607
Overseas sales	328,072	355,911
Total	3,707,244	3,723,518

• Foreign market for trading company (overseas sales)

		Thousands of Yen
	Year ended	Year ended
	January 31, 2023	January 31, 2024
	Amount	Amount
Asia	245,550	271,999
Middle East	40,622	31,989
Others	41,899	51,922
Total	328,072	355,911

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