Corporate Philosophy
Corporate Mission
We, Fuji Electric, pledge as responsible corporate citizens ina global society to strengthen our trust with communities,
customers and partners.
Our mission is to:Contribute to prosperity
Encourage creativity
Seek harmony with the environment

SloganTo be enthusiastic, ambitious and sensitive.

Management Policies
Through our innovation in energy and environment technology,
we contribute to the creation of responsible andsustainable societies.
Achieve further growth through our global business expansion.
Maximize our strengths as a team, respecting employees’
diverse ambition.

Brand Statement

01 Fuji Electric Report 2018

Contents

01

Fuji Electric’s Energy andEnvironment Businesses

03

Consolidated Financial Highlights

05

President’s Message

Review of Operations(Overseas Operations)

23

Review of Operations(Capital Expenditures andR&D Expenditures)

24

Research and Development /Intellectual Property

25

Manufacturing / Procurement

27

Fuji Electric’s CSR Activities

29

Environment

31

Social33

Corporate Governance

35

Compliance38

Risk Management

39

List of Officers

40

Corporate Data

41

Global Network

43

Detailed information is available on
our website:
https://www.fujielectric.com

Corporate Information

Corporate
Information

13

CSR Activities

CSR Activities

Review of Operations(By Segment)

The Fuji Electric Report is published tohelp shareholders, investors, and otherstakeholders gain deeper insight into
the Company’s management activities.
The report provides wide-ranging
coverage of key points regarding ourmanagement policies and strategies,
as well as our business results, financial
position, and our environmental andsocial initiatives for the realization ofsustainable societies.

Business Report

Business Report

07

Objectives of This Report
President’s Message

Corporate Philosophy /Management Policies

 bout Fuji ElectricAInvestor Relations
CSR
Research & Development

Fuji Electric Report 201802

Fuji Electric’s Energy and Environment Businesses

With energy and environment technology as its core technology, Fuji Electric contributes to the creation of responsible
and sustainable societies through its four businesses—Power Electronics Systems, Power and New Energy, Electronic
Devices, and Food and Beverage Distribution—which have been arranged into five segments. The Company combines
IoT and control technologies with components using key devices to supply a wide range of solutions required byindustries and society in fields spanning from social infrastructure to industrial distribution.

Four Businesses inFive Segments

Power Electronics

Power and New Energy

Energy Solutions
Clean energy

Power and new energy

Stable supply and optimization of energy

Energy management

Power supply andfacility systems

	Energy management
systems	Power distribution	Transmission anddistribution	Smart meters	Data centers	Uninterruptible powersystems (UPSs)
	Switchboards	C old chain systems
	Plant factories

	Thermal power
Geothermal power
Hydro power
Solar and wind power
Fuel cells

ED&C components	Power distribution andcontrol equipment

System Solutions
System solutions combining components withengineering services and IoT* technologies

System* Internet of Things: Framework for fundamentally revolutionizing
business and our daily lives by connecting various objects throughnetworks and enabling them to achieve optimal, autonomous control
of one anotherEngineeringComponents

ControlComponents for measuring instruments and control
equipment and ED&C components that use key
devices to contribute to optimization, stabilization,
automation, efficiency improvements, and energy
savings in facilities and plants

Steamturbines

Key Devices
Power semiconductors for controlling power andsensors employing various applied technologies forsupporting safe operation in social infrastructure
and industrial fields

03 Fuji Electric Report 2018

MotorsInvertersFA
components

UPS

Power semiconductors

Transformers

Systems

Electronic
Devices

Food and Beverage
Distribution

Automation and energy saving

Miniaturization andenergy saving

Labor and energy saving

Process
automation

Social solutions

Semiconductors

Vending machines

Store distribution	Electrical equipment
for railcars
	Electric vehicle systems
	Radiation monitoring
systemsPower semiconductors

Vending machines	Store equipment
	Currency handlingequipment

Industry Solutions

Factory automation
	Inverters	Motors	FA components
	FA systems
	Distribution systems
	E xhaust gas cleaningsystem for ships

	Drive control
	Measurement
and control

IoT

Servicesequipment

ED&C
components

SmartmetersMeasuring
instruments

Electricalequipment
for railcars

Vending Showcases
machines

Sensors

Fuji Electric Report 201804

Consolidated Financial Highlights

Financial Highlights
Fiscal year

Operating Results
Net sales		Japan		Overseas
Operating income
Net income attributable to owners of parent
R&D and Capital Investment
R&D expenditures
Plant and equipment investment*2
Depreciation and amortization*3
Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flow
Cash flows from financing activities
Financial Position
Total assets
Total net assets
Shareholders’ equity
Net Interest-bearing debt
Interest-bearing debt
Financial Indicators
Ratio of operating income to net sales (%)
ROE (Return on equity) (%)
ROA (Return on assets) (%)
Equity ratio (%)
Net debt-equity ratio (times)*4
Debt-equity ratio (times)*5
Per Share Data
Net income
Net assets
Cash dividends
OthersEmployees
		Japan		Overseas

2009

2010

2011

2012

691,223
513,616
177,607924
6,757

689,065
510,843
178,221
11,917
15,104

703,534
525,096
178,437
19,252
11,801

745,781
567,314
178,466
21,992
26,36824,296
19,124
26,05332,56827,22327,94532,24724,98929,75531,16031,771
31,054

11,923(528)
11,395(62,575)

53,85384,241138,094(93,468)

28,314(13,489)
14,825(32,593)

55,342(24,286)
31,055(56,827)

908,938
196,134
178,866
347,749
385,032

805,797
174,935
155,355
225,059
306,856

792,848
183,217
163,576
225,227
289,489765,563
215,672
194,572
217,417257,105

0.1
4.4
0.7
19.7
1.9
2.2

1.7
9.0
1.8
19.3
1.4
2.0

2.7
7.4
1.5
20.6
1.4
1.8

2.9
14.7
3.4
25.4
1.1
1.3

9.46
250.281.50

21.14
217.404.00

16.52
228.91
4.00

36.90
272.295.00

23,524
18,692
4,832

24,56218,002
6,560

24,973
17,933
7,040

24,956
18,2716,685*1 The U.S. dollar amounts represent the arithmetic results of translating yen into dollars at ¥106 = U.S. $1, the approximate exchange rate at March 31, 2018.
*2 Plant and equipment investment is the total of investment in tangible fixed assets, including acquisition amounts for lease contracts.
*3 Depreciation and amortization expense is the total of the depreciation of tangible fixed assets and amortization of intangible assets.
*4 Net debt-equity ratio: Net interest-bearing debt (interest-bearing debt + lease obligations – cash and cash equivalents) / Shareholders’ equity*5 Debt-equity ratio: Interest-bearing debt / Shareholders’ equity

Business Performance Trends(Billions of yen)

Net Sales
Operating Income
Net Income
Attributable to Ownersof Parent
Operating Margin

691.2

689.1

703.5

745.8

（4.4%）（2.9%）（2.7%）（1.7%）（0.1%）

6.8
0.9

15.1
11.9

19.3
11.8

Financial Indicators

2009

2010

2011

Equity ratio

20%

19%

ROE

4%

9%

05 Fuji Electric Report 2018

759.9

26.4
22.0

（4.8%）（5.5%）

893.5（6.3%）（5.3%）

56.0
39.3

33.1

837.8

813.6

810.7

28.0

45.0

44.7
41.0

37.8

30.6

19.6

2012

2013

2014

2015

2016

2017

21%

25%

28%

32%

27%

33%

36%

7%

15%

9%

11%

12%

16%

12%

(FY)

(Millions of yen)(Thousands of
U.S. dollars*1)

2013

2014

2015

2016

2017

2017

759,911582,223
177,688
33,136
19,582810,678605,763
204,915
39,31627,978813,550
597,757
215,793
45,00630,644

837,765
632,723
205,042
44,70940,978893,451
674,744
218,707
55,962
37,7638,428,790
6,365,513
2,063,277
527,944356,263

32,02926,91630,84935,02329,041
33,61535,94927,65029,72334,91027,14929,44535,62026,46530,151

336,045249,679
284,451

53,651(9,649)44,002(50,570)

51,459(22,750)
28,708(33,827)

48,450(19,410)29,040(31,567)

58,185
9,748
67,934(56,082)

53,146(14,550)
38,596(46,887)

501,386(137,265)
364,121(442,336)

810,774
251,225
227,181200,340
233,753904,522319,636
290,339
194,579
226,474

845,378
260,980
230,399
189,374
220,213886,663
323,863291,216
141,578
183,465

918,859
366,546
330,636
130,177
163,5078,668,487
3,457,989
3,119,207
1,228,094
1,542,527

4.4
9.3
2.5
28.0
0.9
1.0

4.8
10.8
3.3
32.1
0.7
0.8

5.5
11.8
3.5
27.3
0.8
1.0

5.3
15.7
4.7
32.8
0.5
0.6

6.3
12.1
4.2
36.0
0.4
0.5

—
—
—
—
—
—

27.41
317.96
7.00

39.16
406.399.00

42.90
322.52
10.00

57.36
407.6811.00

52.87
462.9014.00

25,52418,022
7,502

25,74017,814
7,926

26,50817,635
8,873

26,503
17,716
8,787

27,00917,704
9,305

(Yen)

(U.S. dollars*1)

0.499
4.367
0.132

(Headcount)———

Cash Dividends per Share
(Yen)

14.0

9.0

10.0

11.0

7.0
5.0

4.0

4.0

2009

2010

2011

2012

2013

2014

2015

2016

2017

15.9%

18.9%

24.2%

13.6%

25.5%

23.0%

23.3%

19.2%

26.5%

1.5

Dividend payout ratio(FY)

Fuji Electric Report 201806

President’s Message

Through our innovation inenergy and environment
technology, we arecontributing to the creationof responsible andsustainable societies.
On behalf of Fuji Electric, I would like to express our sincere
gratitude to our stakeholders for their continued support andcommitment to the Company.
Turning an eye to the international stage, we will see a
movement to realize a sustainable society by achieving economic
growth, while also addressing social issues pertaining to energy,
the environment, human rights, and other areas. This movement
is exemplified by the adoption of the Paris Agreement, aninternational agreement to reduce greenhouse gas emissions,and the United Nations Sustainable Development Goals, a set ofinternational goals to be accomplished in order to realize
a sustainable society.
Efforts to address global warming, air pollution, and otherenvironmental issues are being advanced through the spread ofrenewable energy, the development of more energy efficientequipment and devices, and the promotion of electric vehicles,
or EVs. At the same time, the evolution of IoT, AI, and othertechnologies bring with them the potential to revolutionize
manufacturing. These factors are driving the transformation ofsociety as a whole.
In the midst of this progress, Fuji Electric remains committed
to further developing the energy and environment technology it
has honed over the more than 90 years since its founding in
1923. Through this process, we will turn a sincere eye to theissues faced by our customers and the ever-changing society
as we work together with them to resolve these issues.
As responsible corporate citizens in a global society,we pledge to strengthen our trusting relationships withstakeholders and contribute to the creation of responsible
and sustainable societies.

Michihiro Kitazawa
President andChairman of the Board of Directors

07 Fuji Electric Report 2018

Completion of the Medium-Term Management Plan to Form Foundations for Future GrowthEstablishment of New FY2023 Medium-Term
Management Plan

Fuji Electric is moving ahead with the FY2018 Medium-Term
Management Plan, Renovation 2018, which has fiscal 2018as its final year. Acting in accordance with the plan’s basic
policy of “further renovation of Fuji Electric,” we are implementing growth strategies and pursuing improved profitability.
In fiscal 2017, a gentle recovery trend was seen in ouroperating environment. This trend was supported by factors
such as increased production facility automation and laborsaving needs in China, and higher demand for replacementsof aged facility and for investments in automation and laborsaving in Japan.
In this environment, net sales increased ¥55.7 billion year
on year, to ¥893.5 billion. Meanwhile, operating income rose
¥11.3 billion year on year, to ¥56.0 billion, and the operating
margin climbed to 6.3%. These figures represented record
highs for both items, with operating income setting a newrecord for the first time in 11 years, the previous record beingfrom fiscal 2006, while the operating margin broke the record
from fiscal 2015, two years ago. Moreover, both figures
reached the level targeted in the Medium-Term Management
Plan, a year ahead of schedule.
As for financial indicators, the equity ratio rose to 36% and,even as we boosted equity, we were still able to secure returnon equity of 12% thanks to income growth. As for shareholder
returns, we have decided to issue a full-year dividend of ¥14
per share, comprising an interim dividend of ¥6 and a year-end
dividend of ¥8. This amount will represent an increase of ¥3
per share above the previous fiscal year and make for a dividend payout ratio of 26.5%.

We are committed to the completion of the FY2018 MediumTerm Management Plan in fiscal 2018, which will entail
addressing the four priority issues I will explain later on inorder to achieve our targets, ¥900.0 billion for net sales, ¥58.5
billion for operating income, and specifically record highs of
6.5% for the operating margin. Also, during this fiscal year, we
will begin preparing a new medium-term management plan,
which will kick off in fiscal 2019 and end in fiscal 2023, the100th anniversary of Fuji Electric’s founding. Our preliminary
targets for the final year of this plan are net sales of ¥1 trillion
and, based on the operating margin of 6.3% achieved in fiscal
2017, an operating margin of 8.0% or more.
In regard to shareholder returns, we will continue to adhere
to our current policy, which is to pay a stable, continuous
dividend, while strengthening our management base andmaintaining sufficient internal reserves for research anddevelopment, capital investment, mergers and acquisitions,and human resource development from a medium-to-longterm perspective. Given the anticipated improvements to ourfinancial base from income growth, we will target a dividend
payout ratio of around 30%.

President’s Message

Record-Breaking Operating Income and Operating
Margin Achieving Targets Ahead of Schedule

Further Renovation of Fuji Electric
Renovation 2018

813.6
（5.5%）

45.0

2015
Results

837.8（5.3%）

44.7

2016
Results

893.5

900

（6.3%）（6.5%）

56.0

58.5

2017
Results

2018
Management Plan

Financial Indicators

900

Net Sales（6.0%） Operating
Margin54

2018
Medium-Term
Management Plan

Equity ratio

27%

33%

36%

37%

32%

ROE

12%

16%

12%

12%

12%

Operating
IncomeNew FY2023
Medium-Term
Management Plan
(100th Anniversary of Founding)(FY)

Fuji Electric Report 201808

President’s Message

Global Business Growth Supported by Even Stronger Operations
The key issues that have been defined for fiscal 2018 are tostrengthen the power electronics systems business, proactively invest in the expansion of our power semiconductorbusiness, further enhance our manufacturing capabilities, andreenergize the Pro-7 Activities.
Key Issues for Fiscal 2018

Strengthen power electronics systems businessProactively invest in expansion of power
semiconductor businessFurther enhance manufacturing capabilities
Reenergize the Pro-7 Activities

09 Fuji Electric Report 2018

Strengthening of Power Electronics Systems BusinessIn fiscal 2017, we reorganized and integrated our social
infrastructure, industrial infrastructure, and power electronics
operations to form the Power Electronics Systems BusinessGroup. This new group accounts for roughly 60% of theCompany’s total net sales and thus represents the backboneof our business. In this group, we will create competitive
components, enhance systems through combinations ofthese competitive components, and expand overseas
businesses by leveraging systems.
In Japan, the Power Electronics Systems Business Grouphas been successful at incorporating facility replacement
demand from customers while capitalizing on the benefits of
its newly integrated operations to receive comprehensive
electrical equipment orders. A future goal will be to expand
such comprehensive electrical equipment orders, which
entails bundling substation and power supply equipment that
support power stability with energy management systems that
control electricity and heat at facilities.
The track record and expertise we have cultivated in Japan
will be utilized in the standardization of systems and thedevelopment of system bundles as well as in efforts to acquire
system solutions in China and other parts of Asia. We will
simultaneously promote local production and consumption
and accelerate the enhancement of manufacturing andengineering capabilities at overseas production bases.

A new issue to be addressed in fiscal 2018 is the proactive
investment in expanding our power semiconductor businessand thereby reinforcing this already strong business.
Semiconductor businesses inherently face the risk offluctuations in sales volumes. Previously, Fuji Electric haschosen to limit the scale of its semiconductor operations to asize that would enable it to compensate for this risk. As such,our semiconductor operations have fulfilled the role ofproviding the key power control and conversion devices
crucial to supporting the competitiveness of our powerelectronics systems operations. Recently, however, thestructure of the power semiconductor market has been
undergoing substantial changes. Factors behind thesechanges include the brisk investment in automation in theindustrial field as well as the rapid proliferation of EVs aroundthe world.
In light of these changes, we have chosen to alter ourapproach to commence proactive investment in manufacturing
and research and development in relation to power semiconductors, an area in which Fuji Electric boasts world-leading
technologies and a high market share for its mainstay IGBT
modules. Through these efforts, we aim to boost both sales
and profitability in this area. Specifically, we are planning
capital expenditures of approximately ¥20.0 billion foraugmenting production capacities and installing production
facility that is compatible with new products. As for researchand development, we will invest in the development of power
semiconductors for automotive and railroad applications aswell as next-generation SiC power semiconductors. These
investments are slated to begin producing results within the
period of the new FY2023 Medium-Term Management Plan.

Further Enhancement of Manufacturing Capabilities

President’s Message

Proactively Invest in Expansion of Power
Semiconductor BusinessIn fiscal 2018, we will endeavor to further enhance ourmanufacturing capabilities by realizing more efficient andhigher value production through automation and in-houseproduction and by utilizing IoT. Meanwhile, increased coordination will be promoted between domestic mother factories
and overseas production bases as well as among overseas
production bases themselves to fortify the foundations of ourglobal supply chain. Human resources development will be of
the utmost importance to accomplishing these objectives. For
example, Fuji Electric Manufacturing (Thailand) Co., Ltd., as aregional mother factory for overseas production bases,
provided guidance to an Indian factory of Fuji Electric India
Private Ltd. as well as to Fuji Electric France S.A.S. when thiscompany was attempting to start up a new low voltage
inverter production line. Staff from Fuji Electric Manufacturing(Thailand) played a central role in the latter undertaking. In thepast, we primarily trained local overseas hires in Japan. Goingforward, however, we will step up education programs for
manufacturing staff on a global basis. We anticipate that these
efforts will help us continue to supply customers productswith quality they can trust.

Reenergization of the Pro-7 Activities
Fuji Electric’s Pro-7 Activities entail all Group employees
reviewing the way they work from the ground up in order toimprove work quality and efficiency. Key to these activities,
I believe, are employee awareness reforms. Based on thisbelief, we encouraged employees to remind themselves of thebasics of their work and practice self-monitoring and selfanalysis in their work during fiscal 2017. The efforts helped
employees discover new aspects of their job.
Pro-7 Activities have become a fixture of our corporate
culture in Japan. By extending these activities to overseas,
we hope to realize further improvements to work quality andsubsequently profits.

Manufacturing is how a manufacturer makes its money.
Previously, our focus in manufacturing reforms has beenmonitoring techniques for identifying issues along with thepromotion of in-house manufacturing and automation.
Through these efforts, we have proceeded to cut fixed andother costs.

Fuji Electric Report 201810

President’s Message

Earnest Effort to Address ESG Issues and Achieve Ongoing Growth
Fuji Electric aspires to build trusting relationships withstakeholders and contribute to the resolution of social issues
as a responsible member of society. Exercising its corporate
philosophy and management policies how Fuji Electric fulfills
its corporate social responsibilities. Moreover, the Company
participates in the United Nations Global Compact, and has
incorporated the Compact’s Ten Principles—which pertain to
the four areas of human rights, labor, environment, andanti-corruption—into its Code of Conduct, which sets forth
guidelines for the conduct of all employees, to promoteadherence with these principles.
Guided by the Code of Conduct, we have reorganized our
key CSR issues from the perspective of environmental, social,and governance (ESG) concerns. Through earnest efforts toaddress these ESG issues, we aim to improve medium-tolong-term corporate value. At the same time, we are making
future contributions to the realization of a sustainable society
by working toward the accomplishment of the United Nations
Sustainable Development Goals in our business activities.

Appointment of Independent Outside Directors andReinforcement of Governance at Overseas Subsidiaries
The Company is taking steps to reinforce corporate
governance, such as by appointing outside directors that arealso designated as independent directors. Our goal in theseundertakings is to improve management transparency andfacilitate ongoing growth through enhanced oversight.
Governance reinforcement initiatives are being extended toall subsidiaries, whether in Japan or overseas. Daily monitoring,audits, and education as well as efforts to entrench awarenessregarding our various rules are carried out on a steady,ongoing basis. Particular attention is paid to companies
acquired through mergers and acquisitions. From the moment
such companies become members of the Fuji Electric Group,
we work to reinforce corporate governance through internal
audits and other means.

11 Fuji Electric Report 2018

Respect for Human Rights and Promotion of Diversity
and Workstyle Reforms
As we develop our business on a global scale, we findourselves interacting with various stakeholders. In these
relationships, Fuji Electric views respect for basic human rights
to be among the most fundamental values of a functioning
member of society. For this reason, we conduct human rights
training at domestic and overseas bases in accordance with
the Fuji Electric Compliance Program and implement otherinitiatives to ensure that human rights are respected.
We also place importance on respect for diversity, and weare actively fostering a workplace environment that is conducive to utilizing diverse values to improve teamwork within the
Company and to drive growth. Fuji Electric actively recruits
female employees and systematically develops female leaders. In addition, we are broadening the scope of duties thatcan be performed by differently abled employees, which now
includes work on manufacturing lines, in order to increase
employment of such individuals. We also seek to assist
employees in balancing their work while looking after smallchildren or caring for family members. To support such
employees, we are enhancing our range of teleworking andsatellite office working systems. Moreover, we have been
expanding the scope of employees that we encourage to takefive consecutive days of paid leave a year since I becamepresident, and this scope now includes all employees. One
goal of these efforts is to create frameworks and workplaceenvironments that enable employees to function as a team toprevent work from being delayed should someone take timeoff. Another goal is to facilitate workstyles that achieve a
better balance between work and private life by having
employees take consecutive days off to spend with theirfamilies and then come back refreshed. These paid leavepractices have become entrenched in our corporate culture.

President’s Message

Fuji Electric’s DNA of Being“Enthusiastic, Ambitious and Sensitive”
Formulation of New Environmental Vision
Fuji Electric is working toward Environmental Vision 2020,
which is centered on the three pillars of stopping global
warming, creating a recycling-oriented society, and meeting
our corporate social responsibilities. However, we have also
begun working on a new environmental vision that sets its
sights on fiscal 2050 in light of the adoption of global
frameworks pertaining to climate change issues. Looking
ahead, we will continue our efforts to contribute to therealization of a low-carbon and eventually carbon-free society
by expanding sales of energy-creating and energy-conserving
products that help protect the environment and by reducing
CO2 emissions through energy-saving efforts in our global
production activities.

I believe it is important for all employees to contribute tosociety and grow through their work. It is for this reason that
I take every opportunity, whether in Japan or overseas, toencourage people to act in accordance with the slogan
contained in our corporate philosophy of “to be enthusiastic,
ambitious and sensitive.” As encapsulated in this slogan,
employees should be “enthusiastic” toward creating new
products and services that contribute to society, “ambitious”
in the goals they set and committed to overcoming obstacles
to achieve these goals, and “sensitive” in their ability toappreciate customers, colleagues and the members of theirfamily that support them. This is the DNA of Fuji Electric.
Our goal is to ensure our prosperity as a company, returns
to our shareholders, and the happiness of our employees andtheir families, while contributing to the achievement of asustainable society through our energy and environment
businesses. In closing, we would like to ask for the continued
support of our shareholders, investors, and all of ourother stakeholders.
July 2018

Michihiro Kitazawa
President andChairman of the Board of Directors

Fuji Electric Report 201812

Review of Operations (By Segment)

Power Electronics Systems (Energy Solutions / Industry Solutions)
In the Energy Solutions segment, Fuji Electric supports power infrastructure with its proven technologies to contributeto the stable supply, optimization, and stabilization of energy for customers. In the Industry Solutions segment, we­combine power electronics with measuring instruments and IoT technologies to contribute to improved productivity andenergy savings with factory automation and monitoring.

Power Electronics Systems Business Policy

Strengthen systems operations using competitive components,
expand overseas businesses by leveraging systems
Priority Measures for Fiscal 2018
Develop and introduce global products
Promote standardization and bundling of system solutions

Strengthen systems operations by utilizing overseas
engineering companies partnered with or acquired throughM&A activities
Pursue local production and consumption in Asia

Social Infrastructure Field

Industrial Field(Power / Telecommunications)(Materials / Assembly)

Distribution andLogistics Field

Enhancement ofsystems
Stable supply andoptimization of energy

Automation and energy saving

IoT

Energy solutions

Industry solutions

Engineering / Services

Creation of competitive components

Components
Controlequipment
ED&C
components

Powerequipment

Measuring
instruments

Key Devices
Power semiconductors

13 Fuji Electric Report 2018

Sensors

Creation of Competitive Components
The systems that support the optimal operation of customers’
production facilities and plants require unique, competitive, anddifferentiated components. Fuji Electric’s factory automation
business is focused on the development of servos, which need
the most precise control technologies among FA components;
sensors for monitoring temperature, vibration, and electricity;and programmable logic controllers (PLCs), a type of control
device that regulates the operations of production lines andmaterial plants to guarantee safety. In addition, we are accelerating the creation of global products based on international
specifications to expand overseas operations.

Enhancement of Systems Using Competitive
Components
The systems project track record, technologies, and expertise
Fuji Electric has cultivated to date are being utilized to promote
the standardization and bundling of hardware and software inan effort to step up development of high-value-added systems.
Furthermore, we are backing these systems with engineeringand other services.

Fuji Electric is focusing on developing its transmission anddistribution systems, process automation, and FA systems
primarily in China and other parts of Asia. In these operations,
we take advantage of overseas engineering companies
acquired through M&A activities, namely Fuji Tusco Co., Ltd.;
Fuji Gemco Private Limited; Fuji CAC Joint Stock Company;
and Fuji SEMEC Inc. At Fuji Electric Manufacturing (Thailand)Co., Ltd., meanwhile, we have begun constructing switchgear
and controlgear system factories (third factory scheduled tocommence operation in 2019). These facilities are anticipatedto help us cater to demand for the switchboards that control
power at factories; this demand is rising in Asia, where factories
and buildings are being constructed at a rapid pace. In addition
to these undertakings, we are applying standardized andbundled systems to focus areas, such as steel, cement, andchemicals, to increase orders overseas, where systems often
must be delivered on tight schedules.

China

North America

Power
Energyconditioning sub- Management
systems (PCSs) System (EMS)

FA systems

Wuxi Fuji Electric FA Fuji ElectricCo., Ltd.
Motor (Dalian)Co., Ltd.

Business Report

Expansion of Overseas Businesses by Leveraging Systems

Railcars

Fuji SEMEC Inc.

Shanghai Electric Dalian Fuji Bingshan
Fuji Electric
Smart Control Systems
PowerCo., Ltd.
Technology(Scheduled to establish in(Wuxi) Co., Ltd. September 2018)

Asia
Uninterruptible
power Switchgears
systems
andInverters(UPSs) controlgears

Fuji Electric Manufacturing(Thailand) Co., Ltd

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

Fuji Tusco Co.,Ltd.

Ratio ofoverseas
sales

19%

504.8

21%

21%

538.6

546.4
27.7

2016
Results

2017
2018
Results Management
Plan

(FY)

2016
Results

32.9

Substationequipment

Process automation

Fuji Gemco
Private Limited

Fuji CAC
Joint Stock
Company

Net Sales Composition Ratio(Management Plan in FY2018)

Operating Income
Composition Ratio(Management Plan in FY2018)

57%

54%

35.6

2017
2018
Results Management
Plan

(FY)

Energy Solutions
Industry Solutions
Note: Figures for FY2016 and FY2017 reflect the organizational restructuringconducted in FY2018
Fuji Electric Report 201814

Review of Operations (By Segment)

Energy Solutions

Business Areas

Operating Environment
In Japan, demand is rising for solutions to stabilize power supplies and optimize theenergy supply and demand in order to maintain reliable operations of equipment atfactories and facilities. At the same time, the shortage in facility ­management personnel
is stimulating demand for IoT to be utilized in all service areas, including after-sales
services, in order to monitor and optimize operations while saving energy.
In rapidly growing Southeast Asia and other emerging countries, the acceleration of
investment in social infrastructure and in production facilities is creating issues related tothe stability and efficiency of power supplies that need to be addressed.

 nergy Management
E
Power distribution, Smart meters,
Industrial substation, Railway
substation, Industrial power supplies
Power Supply and Facility Systems
Data centers, UPS, Electrical facilities,
Switchgears and Controlgears
ED&C Components
Power distribution and control
equipment

Review of Operations in Fiscal 2017

Priority Measures for Fiscal 2018

In the Energy Solutions segment, net sales were up year on
year. Sales benefited from large-scale orders for substationequipment for the power and industrial fields overseas. In addition,
this segment enjoyed increased demand from machine tool andother equipment manufacturers and from overseas in the ED&C
components business.
Operating income in this segment increased due to higher sales
in the ED&C components business as well as due to cost reductions.

Grow Comprehensive Factory and Facility Electrical
Equipment Orders
In fiscal 2018, Fuji Electric will pursue growth in comprehensive
electrical equipment orders. Focused on the five target fields ofsteel, semiconductors, buildings and facilities, assembly, and food,we will propose bundles that combine the substation, power
supply, and air-conditioning
Optimalequipment that underpin the
Stable energy
energy supplystable supply and optimizasupply
demand balancetion of power at factories
and facilities with energy
management systems
Maintenancecustomized for specificand services
industries. Furthermore,
we will seek to expand ourComprehensive Energy Solutions
business through theprovision of comprehensive energy solutions that encompass
everything up to and including maintenance and other services.
Expand Transmission and Distribution Systems Businessin Asia
We will reinforce our engineering systems and increase ordersof engineering, procurement, and construction (EPC) projects inorder to expand our transmission and distribution systems
business in Asia. At the same time, the strengths of Fuji Tusco,
which manufactures transformers, will be utilized to boost thecompetitiveness of our product lineup through the promotion of
global products and to thereby facilitate the growth of completely
local businesses. For replacement projects, we will coordinate
with local distributors and trading companies to step up service
proposal activities.

Major Initiatives in Fiscal 2017
Expansion of Orders Amid Substation Equipment
Replacement Demand
In Japan, replacement demand isrising as existing facility and plants
age. In fiscal 2017, Fuji Electricincreased in orders for substationequipment centered on steel, chemical,
and other material industries. This featwas accomplished by proposing
Substation equipment
renovations and replacements ofcustomers’ aged facilities.
Plant System Order Acquisition with a Focus on Energy
Management Systems
In fiscal 2017, Fuji Electric bundled energy management systems,
which optimize electricity and heat usage within factories, andcombined heat and power supply equipment, such as cogeneration systems that up self-sufficiency in terms of energy, to provide
comprehensive energy optimization packages. We also developed
control software that was ideally suited to specific industries.
With focused on energy management systems, we sought
to capture plant system orders by proposing combinations of
substation and power supply equipment to customers.

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

Net Sales Composition Ratio(Management Plan in FY2018)

Operating Income
Composition Ratio(Management Plan in FY2018)

23%

25%

Ratio ofoverseas
sales

25%

27%

27%

212.2

217.6

224.4
13.7

2016
Results

2017
2018
Results Management
Plan

(FY)

2016
Results

14.0

16.4

2017
2018
Results Management
Plan

Note: Figures for FY2016 and FY2017 reflect the organizational restructuringconducted in FY2018

15 Fuji Electric Report 2018

(FY)

Industry Solutions

Business Areas

Operating Environment

 actory Automation
F
Inverters, Motors, FA
components (servo andcontroller), Measuring
instruments and sensors,
FA systems
Process Automation
Drive control systems, Measuring
and control systems

Labor shortfalls and aging production facilities are s­ timulating
increased demand for automation and labor saving in thedomestic industrial field.
In China and other parts of Asia, a lack of production floor
staff and the need to improve productivity are creating issues
amid the continually robust capital expenditure demandcentered on the semiconductor and automotive fields.

 ocial Solutions
S
Electrical equipment for railcars,
Radiation monitoring systems
Equipment ConstructionIT Solutions

Priority Measures for Fiscal 2018

In the Industry Solutions segment, net sales increased year on
year. Performance was driven by the factory automation
business, which benefited from robust demand for the automationof production facilities in Japan and China, and the process
automation business, which enjoyed brisk replacement demandin the Japanese market. Another proponent of performance
was the IT solutions business, which saw increased demand fortablets in conjunction with the trend toward utilizing IT for
education in schools.
Operating income in this segment grew together with net sales.

Expand FA Systems
In fiscal 2018, Fuji Electric will undertake the development andsupply of testing apparatuses and production line conveyancesystems that help resolve customer issues by combining its
components, such as inverters, servos, controllers, and sensors,with its control technologies and engineering capabilities.
To support these efforts, we will approach assembly
processing industry end users in the automotive andsemiconductor fields with the aim of growing FA system orders.
At the same time, we will utilize the track record and expertise
cultivated in Japan to expand our operations overseas.
Grow the Process Automation Business in Asia
We are stepping up engineering training at Fuji Gemco of India
and Fuji CAC of Vietnam, both acquired through M&A activities,
and other overseas engineering companies. We thereby aim togrow overseas operations targeting steel and cement plants
and other system fields in which Fuji Electric specializes.

Major Initiatives in Fiscal 2017
Expansion of Factory Automation Orders
In fiscal 2017, welaunched our ALPHA7
series of servo systems
boasting industry-leading
MICREX-SX Series
levels of control
ALPHA7
SPH3000D
performance as well as
the MICREX-SX Series SPH3000D motion controller. These
products are applicable in a variety of fields, ranging fromfactory production facility and machine tools to packaging
machinery, and we were thus able to expand orders of theseproducts as an integrated motion control system. Orders wereprimarily centered on China and Japan.
Acquisition of Steel Plant Order in India
Fuji Gemco, a company in India acquired through M&A activities,
received steel plant orders in fiscal 2017. We filled these orders
by delivering a system that bundled software with our PLCs,
motors, and inverters for use in steel rod and rolling lines. By
shortening development periods to quickly deliver highly reliable
systems, Fuji Electric will endeavor to meet the needs ofcustomers requiring quick turnaround times.

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

Steel rolling facilities

16%

2,92.516%

321.0

Operating Income
Composition Ratio(Management Plan in FY2018)

34%

29%

17%

322.0
14.0

2016
Results

Fuji Gemco

Net Sales Composition Ratio(Management Plan in FY2018)

Ratio ofoverseas
sales

Business Report

Review of Operations in Fiscal 2017

2017
2018
Results Management
Plan

(FY)

2016
Results

18.9

19.2

2017
2018
Results Management
Plan

(FY)

Note: Figures for FY2016 and FY2017 reflect the organizational restructuringconducted in FY2018
Fuji Electric Report 201816

Review of Operations (By Segment)

Systems Project Case Studies

Energy Management
Seeking to reduce energy consumption at the Yamanashi
Factory, which produces power semiconductors, Fuji Electric
implemented the Smart Factory Initiative at this factory torealize stable power supplies and energy savings.
As part of this undertaking, we actively introduced ourenergy-saving equipment. In the clean room, conventional
motors for fan and pump were replaced with the Company’s
high-efficiency inverter motors. Meanwhile, air-conditioning
equipment, which consumes massive amounts of power, wasreplaced with systems that use cold water to cool only thenecessary areas.
In addition, we installed our fuel cells and in-house generationequipment at the factory site and introduced a cogeneration
system (combined heat and power) to make effective use of
exhaust heat. Furthermore, sensors were installed on factoryequipment. These sensors, which are an area of strength for
the Company, allow for the monitoring and collection of dataon energy usage within the factory. By analyzing this data(monitoring and comprehension) and running simulations toachieve optimal operating conditions (optimization), we succeeded in reducing the amount of energy consumed by the
Yamanashi Factory and were able to secure all the power thatwas used through in-house generation.

Process Automation
Intermediate waste treatment facilities, which primarily treat
household garbage, employ a variety of facilities, including
incinerators as well as the cranes and conveyors used totransport waste. It is important for these facilities to be able tomaintain safe and stable operation while also reducing theimpact on the environment from waste incineration. Fuji
Electric supplied the system currently used by the Miyanojin
Clean Center of Kurume City in Fukuoka Prefecture, which isable to efficiently incinerate massive quantities of waste. Thissystem consists of a decentralized control system equippedwith PLCs that achieve optimal control of conveyance speed,
air intake, and combustion temperature based on measurements taken by measuring instruments as necessitated by thetypes of waste being treated. This system has been effectiveat realizing safe and stable operation and reduced environmental impact. Moreover, the system goes further to makecontributions to a low-carbon, recycling-oriented society bygenerating electricity using the heat energy given off during
the waste incineration process. Switchboards are used to
distribute the generated electricity for use within the facility,with surplus power being sold. The end result is energy
savings and subsequently a smaller environmental footprint.
A major strength of Fuji Electric is its ability to propose
systems that combine electrical equipment, measuring instruments, and control equipment. Capitalizing on this strength,
we are moving forward with system bundle proposals andorder acquisition activities to contribute to the optimization ofentire production lines and even entire facilities.

17 Fuji Electric Report 2018

Optimization of Energy Usage
This optimal energy control system has been dubbed the“Yamanashi Model.” We are currently adapting this model into
industry-specific systems packages for use at a variety of
external facilities, including semiconductor, steel, assembly,
and food plants and buildings and other structures.
Energy Management System1 onitoringM
Monitoring of energy usage2

 omprehension
C
Analysis of energy usage data3

 ptimization
O
Optimization of energy usage

34% reduction in energy usage in fiscal 2015
(in comparison to fiscal 2010)

Waste Treatment Facility Control System
Fuji Electric System at Miyanojin Clean Center

1 Decentralized control

system (Capable of controlling operations throughout
the facility)
2 PLC
3 Generator
4 Switchboard

1

2

3

4

Improvement of EV Storage Battery Quality and Productivity

Electric vehicles (EVs) are expected to become increasingly
more mainstream going forward. In China, the drive to adopt
EVs is being supercharged by plans to introduce regulation on
new energy vehicles (NEVs) in 2019. Furthermore, over half of
the world’s lithium-ion batteries, which are indispensable toEVs, are produced in China. Fuji Electric is supplying major
Chinese lithium-ion battery production equipment manufacturers
with its motion control systems, which boast industry-leading
control capabilities.
Lithium-ion batteries are comprised of coiled layers of film
coated in materials that are able to store electricity. If these coils
are not sufficiently tight, it can have a significant adverse impact
on the lifespan and performance of the battery. For this reason,
manufacturing these batteries requires sophisticated technologicalcapabilities to control the strength and speed at which film
is stretched.
Fuji Electric’s motion control systems contribute to improved
product quality and productivity for customers with their ability
to realize high-precision, high-speed motion control.
When it comes to business negotiations related to systems,
the competitiveness of proposals hinges on the ability to swiftly
meet customers’ needs. In this regard, Fuji Electric’s in-house
design and production of equipment is a huge advantage.

By merging our control technologies with mechatronic
technologies, we are able to achieve timely development andproposal of systems matched to the needs of each customer.

Factory Automation
There are currently around 110,000 ships at sail around theworld, and another 2,000 ships are built each year. Sulfur
oxide (SOx), a pollutant contained in ship exhaust gas, isdamaging to the environment and to people’s health. Seeking
to reduce such damages, the International Maritime
Organization plans to implement regulations on SOx, as wellas particulate matter, another pollutant, in 2020. These
regulations will call for a 95% reduction in fuel oil SOx content.
Complying with these regulations will require ship operators toswitch to costly low-sulfur fuels, resulting in a massive
increase in running costs. Another approved option is to use
ship exhaust gas cleaning systems, of which SOx scrubbers
are a key component. The market for these systems is
expected to grow rapidly as they represent a SOx reduction
solution that enables ship operators to continue using thesame fuel.
Fuji Electric has developed SOx scrubbers that employ a
proprietary cyclone technology. We offer these scrubbers todomestic ship operators and have been moving forward withverification tests, leading to the acquisition of our first order infiscal 2017.
Conventional SOx scrubbers utilize a technology in which
seawaters is sprayed on exhaust gas to remove SOx bytaking advantage of a chemical reaction between SOx andthe alkalis in the seawater. As such, achieving large processing
capacities required massive overhauls to ships, which wasa significant obstacle to introduction. Fuji Electric’s cyclone
SOx scrubbers have garnered attention across the industry
for their compact size, which enables them to fit in the engine

Business Report

Factory Automation

Verification-use film coiling system

Motion control system

Ship Exhaust Gas Cleaning Systems
rooms of most ships. Another benefit of using Fuji Electric
scrubbers is that they can be supplied in system bundles that
contribute to energy savings. These bundles combine gas
analyzers and other measuring instruments that monitor the
status of SOx scrubbers in real-time as well as inverters forcontrolling seawater intake and other peripheral equipment.
In the future, we hope to incorporate IoT technologies into ourship exhaust gas cleaning systems to help automaticallymonitor the operating status of systems to prevent malfunctions
or otherwise add value through after sales businesses.

Main unit of ship exhaust gas
cleaning system (upper right)

Fuji Electric Report 201818

Review of Operations (By Segment)

Electronic Devices

Business Areas

Across the industrial and automotive fields, Fuji Electric
contributes to high power conversion efficiency andenergy savings by supplying power semiconductors,
which are key devices in power electronics.

Semiconductors
Industrial and Automotive fields
Magnetic disks

Operating Environment
A trend toward automation and labor saving is currently being seen in the industrial field centered on Japan and China, stimulating
growth in demand for power semiconductors for motor control applications of machine tool and robots.
In the automotive field, Germany, the United Kingdom, and France have announced future bans on the sales of conventional
fossil fuel vehicles. Meanwhile, China, the world’s largest automotive market, is advancing a national movement to promote EVs.
These trends are accelerating the shift toward EVs, which is expected to drive rapid growth in demand for power semiconductors
for automotive applications.

Review of Operations in Fiscal 2017

Priority Measures for Fiscal 2018

In the Electronic Devices segment, net sales were up year on
year. Sales of semiconductors for machine tools and otherareas of the industrial field showed substantial growth on theback of increased automation and labor-saving investment in
the Chinese and Japanese markets. In addition, demand forsemiconductors for automotive applications was firm.
Operating income rose due to the higher net sales and thebenefits of favorable foreign exchange influences.

Invest in Production Capacity Increases for Expanding
Power Semiconductor Operations
We plan to conduct aggressive investment in power semiconductor production equipment in preparation for the projected
growth in industrial field demand and the full-fledged proliferation of EVs. In regard to front-end processes, we will invest inincreasing 8-inch wafer production capacity. As for back-end
processes, investment will be mainly directed toward production facilities for modules for industrial, automotive, and air
conditioning applications. We will thereby seek to expand
domestic and overseas production levels.
Accelerate Automotive Power Semiconductor
Product Development
In its R&D, Fuji Electric is shifting development resources toautomotive IGBT modules and investing in related development
equipment with the aim of growing sales of these modules.
In addition, we have commenced mass production of SiC
trench gate MOSFETs* in the form of an all-SiC module andbegan employing this module in our power electronics products.
When incorporated into an inverter, this module can contributeto power loss reductions of 78% incomparison to prior Fuji Electric
Si devices.

Major Initiatives in Fiscal 2017
Expansion of Domestic and Overseas Power
Semiconductor Production Capacities
We bolstered our series of 7th-generation IGBT modules, which
contribute to more compact equipment as well as to greater
energy and space savings in comparison to previous offerings,
while also expanding our 8-inch wafer production capacity andimproving productivity. In addition, we boosted back-end processing capabilities overseas to address growth in inverter air
conditioner unit demand in China. These efforts contributed tohigher sales.
Development and Mass Production ofAutomotive Power Semiconductors
Fuji Electric developed an automotive IGBT module utilizing theCompany’s direct liquid cooling technology and RC-IGBT chiptechnology and commenced mass production. These technologies helps EVs drive for longer distances while making theirmotor drive units smaller. Moreover, they are top in their class interms of output electric power density.

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

*M
 etal-Oxide-Semiconductor Field-Effect Transister

All-SiC module

Net Sales Composition Ratio(Management Plan in FY2018)

Operating Income
Composition Ratio(Management Plan in FY2018)

14%

23%

Ratio ofoverseas
sales

61%

61%

61%

118.5

126.9

133.0
13.7

15.2

8.0
2016
Results

2017
2018
Results Management
Plan

Semiconductors(FY)

Magnetic Disks

19 Fuji Electric Report 20182016
Results

2017
2018
Results Management
Plan

(FY)

Fuji Electric’s Power Semiconductors
technologies, and packaging technologies. In addition, withfront-end and back-end processing equipment at bases inJapan and overseas, we are able to perform all procedures
related to the production of power semiconductors in-house.
Furthermore, we are diversifying the locations of our production bases to promote local production and consumption while simultaneously planning for business continuity.
Meanwhile, increased productivity is being pursued bybolstering 8-inch wafer production capacity. We are also
developing SiC* power semiconductors that contribute tomore compact and energy efficient devices in order tofurther boost the competitiveness of our products.
* SiC: Silicon Carbide
Business Report

Semiconductors primarily come in four varieties: microcomputers used to make calculations, memory used torecord information, power semiconductors used to control
electricity, and optical semiconductors are others.
Manufactured with sophisticated production and processing technologies, power semiconductors convert
electricity between DC and AC power as well as the voltage
and frequency of electricity to realize efficient use of power.
These devices are incorporated into robots, machine tools,
and other production equipment; data centers; facilities
and power sources necessary to maintain stable suppliesof renewable energy; railroad equipment; and EVs. In theseapplications, power semiconductors support industrial andsocial infrastructure as key devices in realizing energy savings through the control of electricity and its conversion.
Fuji Electric employs power semiconductors in many of
its mainstay power electronics products, including inverters, servo motors, UPSs, and PCSs, to realize higher levelsof efficiency while also making these products more compact. Moreover, it develops operations using these devices
on a global scale.
One of Fuji Electric’s core strengths is that the Company
possesses all of the technologies necessary for the development and production of power semiconductors, specifically power electronics technologies, microelectronics

Strengths of Fuji Electric’s Power Semiconductors
Power electronics
technologies

Powersemiconductors

Microelectronics
technologies(Microfablication)

Packagingtechnologies(Assembly)

Applications of Power Semiconductors
Industrial Field (High Capacity)
Amps

Automotive Field(Medium Capacity)
Electric trains

EVs*1, HEVs*2

Industrial Field(Medium Capacity)

Wind power
generation

Solar power
generation

Industrial Field(Low Capacity)

Inverters
Air conditioners*1 Electric vehicles

Robots(numerical control
machinery, etc.)*2 Hybrid electric vehicles

UPSs

Voltage

Applications of Automotive Semiconductors
EV / HEV motor control
Wiper and power window control
Power MOSFETs

IGBT modules
Intelligent power modules

Engine control

EV / HEV DC-DC converter

Pressure sensors
Power ICs

Power MOSFETs

Light control
Power MOSFETs
Brake control

Steering control
Power MOSFETs
Transmission control
Power ICs

Power ICs

Fuji Electric Report 201820

Review of Operations (By Segment)

Power and New Energy

Business Areas

With its sophisticated plant engineering capabilities,
Fuji Electric meets the growing demand for electricity byproviding various high-efficiency power generation
systems that supply eco-friendly clean power.

 hermal powerTRenewable and new energy
Biomass power generation plants, Geothermal power generation
plants, Hydro power generation facilities, Solar power generation
systems, Wind power generation systems, Fuel cells
Nuclear power-related equipment(fuel handling equipment and waste treatment equipment)

Operating Environment
We are in the midst of a social movement to combat global warming, with efforts on this front predominantly focused on reducing
and eventually eliminating carbon emissions. As power demand and the capacity of generation facilities grow in emerging
countries and other parts of the world, the shift from large-scale power sources to distributed power sources is gaining speed.
In Japan, which is highly dependent on fossil fuels procured from overseas, there is also a need to establish an ideal energy mix*1for ensuring reliable supplies of electricity. In light of these trends, Fuji Electric anticipates growth in after-sales businesses in thethermal power field that entail encouraging customers to upgrade to more efficient systems and products along with increased
introduction of geothermal power, hydro power, solar power, wind power, and other eco-friendly forms of renewable energy.
*1 Mix of power sources allowing for the balanced use of various power types for maximum benefits

Review of Operations in Fiscal 2017

Priority Measures for Fiscal 2018

In the Power and New Energy segment, net sales were up year
on year because the benefits of large-scale orders for thermal
power generation systems counteracted the impacts of thedecline in large-scale orders for hydro power generation systems
and solar power generation systems.
However, operating income declined as a result of lower
revenues from hydro power generation systems and solar
power generation systems and a less favorable sales mix.

Pursue Further Growth in Renewable Energy Orders
Fuji Electric will pursue further growth in orders for geothermal
power generation plants by utilizing its anti-corrosion and turbine
production technologies and it seeks to explore new markets such
as Africa, where increases in energy demand are anticipated.
We also look forward to increases in the introduction of wind
power generation systems given the fact that the systems
currently operating in Japan only account for a low 12%*2 of theapproved generation capacity under the country’s feed-in-tariff
system. Furthermore, we aim to acquire EPC contracts byaddressing issues related to unreliable generation outputs withthe strength of our electricity storage systems, which areequipped with Fuji Electric’s power semiconductor power
conversion technologies.

Major Initiatives in Fiscal 2017
Expansion of Renewable Energy Orders
In the field of small- to medium-capacity generation systems,
an area of expertise for Fuji Electric, we increased in sales forwoody biomass power generation facilities and also delivered
steam turbines and generators to customers such as
Nakayama Nagoya Joint Power
Generation of Aichi Prefecture.
In regard to geothermal power
generation plants, we delivered
Japan’s largest binary geothermal
Nagoya Power Plant 2
power generation plants to the(Biomass)
Yamagawa Binary Power Station of
Kyuden Mirai Energy Company,
Incorporated, located in Ibusuki City,
Kagoshima Prefecture. It is able togenerate power from low-temperature
Steam turbine andheated water that previously could not
generator
be used for generation.
Net Sales

Operating Income(Billions of yen)

(Billions of yen)

*2 Based on figures released by the Agency for Natural Resources and Energy asof September 30, 2017

Expansion of After-Sales Businesses
We are expanding after-sales businesses in which we provide
regular inspections as well as services for boosting generation
efficiency and preventing malfunctions. In regard to thermal andgeothermal power generation plants, specifically, we will construct
networks for providing services that are custom-tailored to theneeds of customers in priority regions such as Asia, the Americas,
and the Middle East under the guidance of mother factories inJapan. At the same time, we will bolster our lineup of lifespandiagnosis services, IoT-powered remote technical services, andother services.

Net Sales Composition Ratio(Management Plan in FY2018)

Operating Income
Composition Ratio(Management Plan in FY2018)

11%

10%

Ratio ofoverseas
sales

22%

17%

20%

93.8

96.9

102.0
7.5

2016
Results

2017
2018
Results Management
Plan

21 Fuji Electric Report 2018

(FY)

2016
Results

5.5

6.5

2017
2018
Results Management
Plan

(FY)

Food and Beverage Distribution

Business Areas

In the food and beverage distribution segment, Fuji Electric
helps to ensure the safety and security of food and beverage products by combining its core heating and cooling technologies with mechatronic and IoT technologies
to provide ideal products and solutions.

 ending machines
V
Beverage vending machines, Vending machines for food andother goods
Store distribution
Showcases, Automatic change dispensers, Eco-friendly stores

Operating Environment

Review of Operations in Fiscal 2017

Priority Measures for Fiscal 2018

Net sales in the Food and Beverage Distribution segment
increased year on year. Although the revision of customers’plans caused performance in the Chinese market to remainaround the same level as in the previous fiscal year in thevending machine business, this business was still able toprosper due to higher demand from customers in the Japanesemarket. The store distribution business enjoyed increased
demand for products for convenience stores.
Operating income was up as the growth in domestic vending
machine demand was able to counteract the downward pressure
placed on income by a less favorable sales mix in the store
distribution business.

Grow Vending Machine Business in China
We will continue to form relationships
with new customers in China, including
beverage manufactures and operator
companies, while introducing cup,
food, and other vending machines
into the Chinese market to respond to Manufacturing floor ofthe diverse needs therein. We thereby second Dalian factory
aim to grow vending machine sales.
Creation of Southeast Asian Vending Machine Market
With the aim of creating a Southeast Asian
vending machine market, we plan to stepup efforts to research the needs of customers
in Thailand and other countries while
promoting proposals for replacing old
vending machines with new models. We
will also commence full-fledged operationof our Indonesia Factory, a new production
Food and goods
vending machine forbase in Southeast Asia, to quickly cement
Southeast Asia
operating foundations in this region.
Development of Labor-Saving Products for Next
Generation Stores
Fuji Electric is committed to developing and proposing
new products that address the labor-saving needs ofconvenience stores.

Major Initiatives in Fiscal 2017
Overseas Expansion of Vending Machine BusinessWe bolstered our vending machine production system in China
with the completion of our second factory in Dalian City, and
we also undertook reinforcements to sales, service, anddevelopment systems. Moreover, we succeeded in strengthening
overall business systems by supporting local beverage manufacturers in deploying vending machines and by providing
operational assistance to local operator companies, which use
vending machines as a venue to sell the items contained
therein. In addition, a vending machine production and sales
company in Indonesia was acquired with an eye to the further
enhancement of operating foundations in Southeast Asia.

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

Net Sales Composition Ratio(Management Plan in FY2018)

Operating Income
Composition Ratio(Management Plan in FY2018)

12%

10%

Ratio ofoverseas
sales

8%

8%

12%

109.6

117.8

116.0
6.0

2016
Results

2017
2018
Results Management
Plan

(FY)

2016
Results

6.2

6.5

2017
2018
Results Management
Plan

Business Report

In China and other parts of Asia, the rise in labor costs are driving a rapid trend toward the automation of beverage and otherretail sales, which is contributing to the growth of the vending machine market. As a result, the Chinese market features demand
for a wide range of vending machines, including can, PET bottle, cup, and food vending machines.
Turning to the domestic convenience store market, we anticipate increased investment in existing stores for the purposes ofboosting sales, reducing labor requirements, and conserving energy. At the same time, the increasingly severe shortage of
employees to operate stores is stimulating a rise in demand for operating solutions that can be used with fewer employees.

(FY)

Fuji Electric Report 201822

Review of Operations (Overseas Operations)

Fuji Electric is applying its policy of local design, local production, and local consumption to building overseas operating
foundations. As part of this undertaking, we are establishing and strengthening sales, engineering, and production basesin China, other parts of Asia, the Americas, and Europe. We have also conducted a total of nine overseas M&A activities
over the period spanning from fiscal 2013 to fiscal 2017 for the purpose of acquiring human resources and sales channels.
Leveraging these bases, we have been successful in approaching customers and strengthening engineering capabilities
overseas, and these efforts have led to the acquisition of steel, cement, and other plant orders, primarily in Asia.
Going forward, we will promote enhanced coordination between manufacturing and engineering bases in Japanand other areas in the pursuit of higher sales in China, India, and other growing Asian markets.

Overseas Sales
In fiscal 2017, overseas sales increased ¥13.7 billion year on
year, to ¥218.7 billion. This growth was driven by performancein China and other parts of Asia, which accounted for morethan 80% of these sales.
The Energy Solutions segment benefited from large-scaleorders for substation equipment in Asia. Meanwhile, the Industry
Solutions segment and the Electronic Devices segment enjoyedincreased demand for FA components, inverters, and power
semiconductors due to the rising production facility automationand energy saving needs in the Chinese market.
In fiscal 2018, we will target overseas sales of ¥236.3 billion,
an increase of ¥17.6 billion year on year, by further expanding
operations in Asia and China.

Domestic and Overseas Sales(Billions of yen)
Ratio ofoverseas sales

24%

837.8

24%

26%

893.5

900.0

205.0

632.7

2016
Results

218.7

236.3

Overseas

674.7

663.7

Domestic

2017
Results

2018
Management Plan

(FY)

Priority Measures for Fiscal 2018Asia
 cquire large-scale thermal and geothermal power generationAsystem orders and grow after sales businesses (Power and
New Energy)
Step up efforts to acquire steel and cement plant orders by
utilizing Fuji Gemco and Fuji CAC (Industry Solutions)
Commence operation at the Indonesia Factory to strengthen
operating foundations in the Southeast Asian vending
machine market in order to create a new model vending
machine market (Food and Beverage Distribution)

China oost FA component and system sales by catering toBproduction facility automation needs (Industry Solutions)Introduce new solar power generation PCSs and accelerate
solar power generation system order acquisition activities withjoint ventures with Shanghai Electric Group to address rising
renewable energy demand (Industry Solutions)Increase orders for air conditioner power semiconductors
by growing inverter-equipped air conditioner sales(Electronic Devices)
Expand sales of new products for automobiles amid national
movement to promote EVs (Electronic Devices)
Bolster vending machine lineup in response to diversifying
market needs (Food and Beverage Distribution)

AmericasStrengthen
systems for local production and consumption bytransferring development and engineering functions to railcars

23 Fuji Electric Report 2018

operations bases acquired through M&A activities in order toexpand overseas systems operations (Industry Solutions)Expand thermal power and geothermal power after-sales
businesses to address rising aged power plants after-sales
service demand (Power and New Energy)

Europe einforce European production systems throughRcommencement of knockdown production* of inverters(Industry Solutions)* A manufacturing technique in which the main parts of a product are procured
from another country or another company and then assembled for sale in thelocal market

Overseas Sales (by Region)(Billions of yen)

205.0

2016
Results

218.7
16.6
14.8

236.3
17.6
15.2

67.5

75.0

106.1

110.9

2017
Results

16.7

Europe15.8

Americas

86.3

China

117.5

Asia

2018
Management Plan(FY)Review of Operations (Capital Expenditures and R&D Expenditures)

Capital Expenditures
Capital Expenditures(Billions of yen)

50.6 0.9
2.8

27.1

1.1
3.7

26.5

8.9

1.1

1.5

12.3
2016
Results

33.2 Electronic Devices
1.5
4.8
11.1

1.2

SharedFood and Beverage
Distribution

12.4 Power Electronics
Systems

7.6
2017
Results

Power and New Energy

2018Management Plan

Business Report

Fuji Electric enacts a basic capital expenditure policy of concentrating investments on facilitating local design, local
production, and local consumption and on focus areas.
In fiscal 2017, expenditures were conducted in theElectronic Devices segment to install production equipment
compatible with SiC power semiconductors and other newly
developed products. Meanwhile, the Food and Beverage
Distribution segment saw expenditures for the completion of
the second Dalian factory in China, which was built to augment
vending machine production capacity in this country.
In fiscal 2018, we are planning expenditures in the Electronic
Devices segment for bolstering production capacity to expand
power semiconductor operations and for investing in production
equipment for manufacturing newly developed products, suchas power semiconductors for automotive and industrial applications and SiC power semiconductors. In the Power Electronics
Systems segment, we will start construction of switchgear andcontrolgear system factories at our production base in Thailand(Fuji Electric Manufacturing (Thailand)).

(FY)

R&D Expenditures
Fuji Electric’s basic policy for R&D expenditures is to invest in
research and development for accelerating the development ofcompetitive, value-added products.
In fiscal 2017, our focus was the creation of competitive
components and systems. We invested in SiC power semiconductors that contribute to substantial energy savings in theequipment in which they are used in the Electronic Devices segment.
Expenditures in the Power Electronics Systems segment weremade to develop an automobile tire testing machines that employs
Fuji Electric’s FA systems. Another R&D focus was the development of an IoT platform that helps customers optimize theirenergy usage and operations through the diagnosis, analysis,
and prediction of facility operating conditions.
In fiscal 2018, we once again plan to devote 40% of R&D
expenditures to the Electronic Devices segment, where we will
move ahead with the development of SiC power semiconductors
and automotive power semiconductors. In the Power Electronics
Systems segment, which will also be the target of 40% of R&D
expenditures, we will conduct research and development on
power electronics products equipped with SiC modules. As forcorporate research and development, we develop IoT-compatible
equipment and systems.

R&D Expenditures*(Billions of yen)

35.6

34.9

2.6
2.8

2.0
2.5

2016
Results

35.2
2.6

Shared2.7

Food and Beverage
Distribution

12.8

12.9

13.4 Electronic Devices

1.6

1.9

1.9

14.8

15.3

14.5 Power Electronics
Systems

2017
Results

Power and New Energy

2018Management Plan(FY)

* Figures for R&D expenditure above have been divided by segment based ontheme and may therefore differ from the figures contained in the consolidated
financial report for the fiscal year ended March 31, 2018.

Fuji Electric Report 201824

Research and Development / Intellectual Property

Research and Development
Fuji Electric is focused on research and development activities for creating competitive components and systems
centered on power semiconductor technologies and power electronics technologies as well as activities for developing solutions that produce value for customers by combining fundamental technologies. The Company has designed
its R&D system to accelerate R&D activities by delegating product development functions to the respective businessgroups while the corporate R&D group handles technology marketing, advanced research, and basic research.

R&D Policies
 reate competitive components and systems utilizing cutting-edge technologies
CDevelop competitive product technologies utilizing technology marketingRealize new innovation by combining Fuji Electric’s fundamental technologies with open innovations

Initiatives in Fiscal 2017
Creation of Competitive Components and Systems
 ower Conditioning Sub-Systems for Large-Scale
P
Solar Power Generation Systems
Fuji Electric has succeeded in the development of a compact,
lightweight, and affordable independent power conditioning
sub-system (PCS) for outdoor use. This PCS reduces current
value by approximately 30% through conversion to higher
voltages and thereby contributes to a massive reduction in thecosts associated with power supplies for solar power generation systems. By revising the parts and designs used in this
PCS, we were able to realize a 20% reduction in size and a 25%
reduction in weight compared to ourprevious models.
Fuji Electric will leverage theincreased competitiveness of thisproduct to expand its operations
in Southeast Asia and other
New PCS: PVI1000BJ-3/1000
overseas regions.

All-SiC Module
Fuji Electric has developed and commercialized an all-SiC
module equipped with SiC trench gate MOSFET. This device
boasts a resistance level that is among the lowest in the world(1200 V, 3.5 mΩ cm2).
When incorporated into an inverter, this device can contributeto loss reductions of 78% in comparison to Fuji Electric’s
Si devices and can thereby realize significant energy savings.
Looking ahead, we intend to expand
the range of products that employ
all-SiC modules in order to bolster thecompetitiveness of Fuji Electric’s
power electronics products.
All-SiC module

Development of Product Technologies Utilizing Technology Marketing
IoT Platform
Fuji Electric has developed an IoT platform that tracks andoptimizes plant and factory operations and energy usage. This
platform utilizes sensing technologies and network connection
technologies to conduct analyses of the big data collected from
customers’ field equipment. In this manner, the platform is able
to function as a solution service that is capable of predicting
facility abnormalities, improving productivity, reducing energy
costs, and otherwise creating value for customers.
Energy management

Operational optimization
Diagnosis / Analysis
Forecasting
Optimization

Equipment management

Big data
Field equipment
Buildings and condominiums Factories and industrial parks Data centers utomobile Tire Testing Machine Compatible with
A
International Standards
The Company has developed an automobile tire testing machinethat is compatible with the Worldwide harmonized Light vehicles
Test Procedure (WLTP), an international standard for exhaustgas and fuel efficiency tests for automobile tires. Fuji Electric’s
electrical inertia control and other sophisticated control techniques
enable this system to test tires for a wide variety of vehicles,
ranging from lightweight passenger cars to four-ton trucks.
We hope to grow sales
in new fields by providing
offerings that combine thistesting machine with
FA systems.
Tire testing machine compatible with WLTP

IoT platform

Realization of New Innovation
Fuji Electric is advancing joint research with Japanese universities
and research institutions based on comprehensive partnershipagreements. In addition, we have endowed laboratories to the
University of Tsukuba and the University of Yamanashi and

25 Fuji Electric Report 2018

helped establish a collaboration center at Zhejiang University.
Through these venues, we are advancing efforts in researchand the development of human resources in the fields of powerdevices, power electronics, and IoT.

Future Initiatives
Focuses of Fuji Electric’s R&D activities going forward will include SiC power semiconductors, automotive power semiconductors,
and SiC-equipped power electronics products as well as automotive and railroad power electronics products and other competitive
components. We will also develop factory automation and process automation systems and IoT solutions that are synergetic withthese components while fostering human resources through the process of tackling new challenges. Through these undertakings,
we will seek to create new value for our customers.

Intellectual Property
Positioning intellectual property (IP) rights as one of the most important management resources, Fuji Electric is
working to implement IP strategies that are aligned with its business and R&D strategies to contribute to thestrengthening and expansion of its globalization-compatible business.
Business Report

IP Policies
 trengthen IP activities that extend back into the stages of business planning and R&D
S
Investigate and respond to overseas IP systems and their current statuses and reinforce IP activities at overseas bases
Promote international standardization activities

Initiatives in Fiscal 2017
IP Activities in the Initial Stages of BusinessWe endeavored to formulate IP strategies from the businessand R&D theme planning stage. After confirming business andR&D directives, these strategies were drafted based on patent
analysis and surveys. We also took steps to develop patentportfolios that ensure a strong advantage in business activities.

Main Fields for Patent Applications
 atents relating to increasing the efficiency and energy savings of powerPelectronics productsPatents pertaining to power semiconductors, such as those for
SiC-related technologies
 atents relating to vending machines and other areas of the food andPbeverage distribution field

Global IP Activities
Fuji Electric continues to address overseas IP issues andimplement measures against counterfeit products to minimize
business risks related to IP.
In fiscal 2017, the patent survey and application functions in
China that were enhanced during fiscal 2016 were used inadvancing survey and application activities spearheaded by our
local Chinese IP division. At the same time, we implemented
measures for countering risks associated with counterfeit
products and IP.
As part of its contributions to international standardization
movements, we collaborated with the International
Electrotechnical Commission (IEC), an international institution
aimed at developing standards for electric and electronic
technologies. Specifically, Fuji Electric contributed as a memberof the international committees responsible for establishing
the IEC System for Certification to Standards Relating toEquipment for Use in Renewable Energy Applications (IECRE
System). Most notably, Fuji Electric was chosen to represent
Japan on the committee on solar power generation system
operation and management.
As a result of these efforts,
Fuji Electric was chosen, for the
first time, to be included in the2017 Top 100 Global Innovators
by Clarivate Analytics, a global
Shiro Kondo (right), Corporate
information service company
General Manager of the Corporate
located in Philadelphia in the
R&D Headquarters, receiving trophy
United States.
from Clarivate Analytics

Future Initiatives
Against a backdrop of increasing globalization, Fuji Electric will move ahead with initiatives linked to its business and R&D strategies
as well as IP activities aimed at addressing IP issues faced overseas. We will also seek to contribute to business through proposal
activities based on global standards in light of the trend toward IoT.

Fuji Electric Report 201826

Manufacturing / Procurement

Manufacturing
Based on its policies of promoting local design, local production, and local consumption, Fuji Electric is developing aframework for optimizing global operations of mother factories in Japan and overseas bases in China and other Asian
countries in order to respond to diverse needs around the world. We also strive to transmit the manufacturing DNA
that we have continued to pass down since Fuji Electric’s inception while promoting and expanding use of new
manufacturing techniques utilizing IoT, improving productivity, and seeking to provide products and services of
the highest caliber in order to leave customers thoroughly satisfied.

Manufacturing Policies
Innovate production with IoT and M2M*
Promote global supply chain reformEnhance on-site production capabilities, production technology capabilities, and humanresource development
Improve product quality* Machine to Machine: System for realizing automated and optimal control by having machines exchange information
without human involvement

Initiatives in Fiscal 2017
Cost Reductions through Manufacturing IoT
The basic concept of manufacturing IoT has been recognized
to be cost reductions. The Otawara Factory, which mainly
produces molded-case circuit breakers, and the Mie Factory,
which produces vending machines, freezers and refrigerated
showcases, have been designated as model factories at which
we will advance manufacturing IoT initiatives. At these factories,
we have installed dashboard systems that monitor production,equipment operation, and energy statistics in real-time. We also
implemented predictive maintenance and quality improvement
initiatives utilizing big data analysis technologies.
Successful manufacturing IoT initiatives will be introduced atother Fuji Electric factories.

Basic Concept of Manufacturing IoTImprovements in productivity
and quality
Energy conservation

Safe andsecure labor savings

Design and production platforms
Value provision

Cost reduction realized

Strengthening of Production Technology Capabilities
In the pursuit of stronger manufacturing capabilities, Fuji Electric
is promoting development of products with an emphasis onease of production through standardization and modular design.
At the same time, we have expanded the scope of in-houseproduction in order to improve value. Meanwhile, productivity
was improved through the automation of conventional assembly
procedures, and we expanded the scope of inspection
procedure automation, contributing to higher product quality
and reliability.

Sheet metal processing line
(Kobe Factory)

Printed wiring board mounting line
(Suzuka Factory)

TOPICSA second factory was constructed at Dalian Fuji Bingshan
Vending Machine Co., Ltd. (DFB), in order to improve ourvending machine production capacity in China. We introduced the integrated production line technologies at use in
Mie Factory into the second Dalian factory and also installed
cutting-edge automation and IoT equipment to improve
productivity.

27 Fuji Electric Report 2018

Second DFB factory

Automated vending machine
welding lineEnhancement of Human Resource Development
Global mother factories in Japan are working to accumulatetechnologies and expertise. Moreover, by encouraging our
employees to participate in the National Skills Competition and
the Skill Grand Prix,* we are eager to nurture ambitious
employees with superior abilities that can take on high-level
challenges. Overseas, Fuji Electric Manufacturing (Thailand)Co., Ltd., has been positioned as an overseas regional motherfactory responsible for supporting production bases in India,
Europe, and the surrounding regions in enhancing their quality
and manufacturing capabilities. One focus overseas isestablishing systems for training local engineers and educatingproduction floor leaders. At the same time, we will continue toactively transmit the manufacturing DNA cultivated in Japan tooverseas operating bases in order to ensure that we canprovide the same levels of quality and service anywhere in theworld.
* Held jointly by the Ministry of Health, Labour and Welfare, the Japan Vocational
Ability Development Association, and ZENGIREN, this competition lets seasoned
engineers put their skills to the test to determine who is the best in Japan. With noage restriction, the level of competition in this event is higher than in the National
Skills Competition, which is generally only open to people ages 23 and under.

Future Initiatives
Business Report

In the future, Fuji Electric will pursue production innovations based on the concept of completely localized production along withcost reductions utilizing IoT in order to boost product competitiveness. Also, measures for automating testing and inspection
processes, utilizing AI for autonomous production, and reducing costs with IoT will be implemented under the guidance of global
mother factories in Japan with the aim of creating factories linked through these technologies.

Procurement
To increase profitability and reduce risks, Fuji Electric is strengthening its global-scale procurement system while also
striving to keep down all costs of materials and indirect materials used in products as well as promoting CSR-oriented
procurement activities.

Procurement Policies
 ecure necessary materials and limit cost increases through responses to procurement
S
environment changes
Promote strategic procurement through coordination between design and development
departments and suppliers
Enhance global procurement capabilities through global estimate management system
Promote thorough compliance

Global estimate management system
explanatory forum for business partners

Initiatives in Fiscal 2017
Strengthening of Global Procurement Capabilities to Reduce Costs of Direct and Indirect Materials
In response to changes in the procurement environment, suchas soaring material prices and tight supply-demand balances,
Fuji Electric expanded the scope of strategic procurement
through coordination between design and development
departments and suppliers with the aim of realizing further cost
reductions. At the same time, we sought to limit cost increases

by standardizing parts and switching to easier to obtain materials.
Furthermore, the Company implemented a global estimate
management system that allows for the sharing of information
on estimates received at all bases. This system enables us tomore efficiently form relationships with competitive suppliers.

Reinforcement of Procurement Business Community Management
Acting in accordance with Fuji Electric’s procurement business
community management regulations, we sought to establish
frameworks for quick confirmation of the impacts on the supply
chain of any natural disasters that may occur. We also worked

to entrench information management practices that will facilitate
the identification of risks associated with material procurement
and thereby help ensure business continuity.

Future Initiatives
The current procurement environment is characterized by a tight supply-demand situation for electronic components, wafers, andother items. Amid these conditions, Fuji Electric will implement its global estimate management system, monitor component related
information from all bases, and collect a broad range of other information to move forward with the standardization of materials
procured and with the establishment of multiple sources for these materials. Going forward, we will strive to contribute to the
expansion of Fuji Electric’s business while simultaneously securing the necessary materials, limiting cost increases, and pursuingcost reductions.
Fuji Electric Report 201828

Fuji Electric’s CSR Activities

Fuji Electric’s CSR is summed up precisely in its corporate philosophy and management policies. These principles entail
contributing to the resolution of social issues through our energy- and environment-related businesses, effectively
managing our business in a way that maximizes the positive impact of overall corporate activities on society and theenvironment while working to prevent or alleviate any negative impact.

Promotion of CSR
As a compass for the promotion of CSR, we have established
the Fuji Electric Code of Conduct, a set of six principles for
guiding concerted action based on a shared understanding
between the Company and all of its employees. In addition,
Fuji Electric has defined key environmental, social, andgovernance (ESG) issues in reflection of the Ten Principles of
the United Nations Global Compact, which are arranged
around four areas. Initiatives for addressing these issues areunderway. Through its business, Fuji Electric endeavors tocontribute to the achievement of the United Nations
Sustainable Development Goals, which were adopted by the
UN General Assembly in September 2015, and is thereby
striving to help realize a sustainable society.
Sustainable Development Goals

Contributions to a Sustainable Society Through Fuji Electric’s BusinessSupply chain

Product quality

Promotion of eco-Green procurement

Transmission ofService quality

techniques

improvements

Initiatives to reduceRemote services

management

improvements

Fair procurement
practices

CO2 emissions fromproduction

friendly products

powered by IoT

Waste reduction

Foundations Supporting Value Creation
Corporate governance

Shareholders andinvestors
Engagement
activities
Information
disclosure

Employees
 espect for human rights
RSafe and healthy
workplaces
Contributions by diverse
employees
Work-life balanceHuman resources
development

Social contributions
 ontributions to local
C
communities

Fuji Electric Code of Conduct
 espect and value our customers
RRespect and value all people
3 Respect and value the global environment

 espect and value our shareholders and investorsRRespect and value interaction with society
6 
Respect, value and conform with all applicable laws
and regulations

1

4

2

5

29 Fuji Electric Report 2018

Ongoing growth of businessInternal control systems
Risk management
ComplianceIntellectual properties
Information security

Contribution to a sustainable society

Sales, marketing,and after-sales
services

Creation of value for customers and society roduct planning,P
design, anddevelopment
Planning of products
for addressing social
issuesEnvironmentalperspective lifecycle
assessments at
design and development phases

Production anddistribution

Procurement

Resolution of social issues

Contributions to asustainable society
through Fuji
Electric’s businessKey ESG Initiatives
Fuji Electric acts from a perspective focusing on ESG issues with the aim of realizing ongoing improvements in corporate value.
Accordingly, the Company has defined key ESG issues, which it is actively working to address. These issues relate to the preservation of the global environment, human rights, occupational health and safety, promotion of diverse workstyles and other workplace
initiatives, compliance at subsidiaries and other Group companies, and fair and impartial engagement with shareholders and otherinvestors. An end goal of these initiatives is to realize ongoing growth on a global scale.
ESG Area

Environmental

Key Issues

Globalenvironment

Major Initiatives

Relevant Pages

Prevention of global
warming educe CO2 emissions during production
R
Reduce society’s CO2 emissions through provision ofenergy-saving products

Creation of a recyclingoriented society romote 3Rs (reuse, reduce, recycle) in relation toPproducts and production activities

Improvement ofcustomer satisfaction

 nhance customer support and service systems
EAdminister customer satisfaction surveys
Provide safe, high-quality products and services

Promotion of CSR acrossthe supply chain

 nforce procurement policies
EPractice green procurement
Support CSR activities of business partners

Human rights

 ntrench awareness of Policy for Human Rights of theE
Employees among all employees
Conduct ongoing human rights training

Safe and healthy
workplaces

 onduct ongoing occupational health and safety training toCprevent occupational accidents
Carry out safety patrols to prevent serious accidents andfrequently occurring accidents
Establish comfortable, healthy workplaces

Diversity

 mploy a diverse range of human resources (non-Japanese P.33–P.34
Epeople, people with disabilities, senior citizens)Reform awareness of management and female employees

Work-life balancePromote flexible workstyles(allow for work in satellite or home offices)
Cut back on excessive work hours
Encourage leave acquisition

Human resources
development

 ultivate globally competent employees regardless of workClocations and nationalities

Community outreach ontribute to communities through activities for protectingC
the natural environment and promoting youth development
Engage in community outreach at operating bases

P.34

Compliance with laws
and corporate ethics

 einforce corporate governance framework
RCultivate mindset of strict compliance among employees

P.35–P.37

Effective complianceprogram implementation

 stablish and revise internal rules and conduct oversight,E
monitoring, and education based on the Fuji Electric
Compliance Program

P.38

Risk management

Establish business continuity plans

P.39

Shareholder and investor
engagement

 old factory tours for private shareholders and investors
HConduct financial briefings for analysts and institutional
investors
Disclose information through shareholder reports, etc.

P.37

P.31–P.32

P.27–P.28

Customers

Employees

Contributions tocommunities

Globalcompliance
Governance

Shareholders
and investors

CSR Activities

SocialPlease refer to Fuji Electric’s corporate website for more information on ESG initiatives.
https://www.fujielectric.com/company/csr/index.html

Fuji Electric Report 201830

Environment

One of Fuji Electric’s management policies states “Through our innovation in energy and environment technology, we
contribute to the creation of responsible and sustainable societies.” This policy guides a united, Groupwide effort toaddress global environmental issues. Moreover, acting in accordance with the Basic Environmental Protection Policy,
we aspire to help preserve the global environment through the reduction of CO2 emissions from our factories and theprovision of energy-saving and energy-creating products to society.

Basic Environmental Protection Policy
1 Offering products and technologies that contribute to global

environmental protection
2 Reduction of environmental burden throughout productlife cycles
3 Reduction of environmental burden in business activities
4 Compliance with laws, regulations, and standards

5 Establishment of environment management systems andcontinuous improvements of the systems
6 Improvement of employees’ environmental awareness andsocial contribution
7 Promotion of communication

Environmental Vision
In 2009, Fuji Electric formulated Environmental Vision 2020 toguide its medium-to-long-term environmental activities, and wehave been working toward the goals of this vision since.
This vision is centered on three specified material issues of
stopping global warming, creating a recycling-oriented society,and meeting our corporate social responsibilities.
In addition to reducing the environmental footprint of our own
production activities, we seek to help achieve sustainable

societies by providing products and technologies that leverage
our strengths in electrical and thermal energy technologies.
At the moment, Fuji Electric is in the process of formulating
its new Environmental Vision 2050, a long-term vision based on
the Paris Agreement, which was adopted by the United Nations
to shape action against global environmental issues, as well as
on Japan’s plan for global warming countermeasures.

Fuji Electric’s Environmental Vision 2050

Japan’s Plan for Global Warming Countermeasures
80% reduction in greenhouse gas emissions from FY2013 levels by FY2050
26% reduction in greenhouse gas emissions from FY2013 levels by FY2030
Paris Agreement adopted
by the United Nations

Fuji Electric’s Environmental Vision 2020
Stop Global Warming

Create a Recycling-Oriented Society

Reduce CO2 emissions during production
by 20% (compared with fiscal 2006 levels).

Increase our number of eco-products bypromoting the 3Rs (reuse, reduce, recycle)
in our products.

 aise the energy efficiency of products,
R
reducing CO2 emissions by 30 million
tons through energy-conserving andenergy creating products.

31 Fuji Electric Report 2018 chieve zero emissions at operationalA
sites by reducing waste and the use ofenergy and chemical substances.

Meet Our Corporate Social
Responsibilities
Strive to enhance environmental awareness through environmental citizen
movements, activities to protect thenatural environment, and environmental
education

Prevention of Global Warming
Fuji Electric endeavors to help stop global warming by reducing CO2 emissions around the world through energy conservation activities at factories and offices and through the supply of energy-saving and energy-creating products and services.

Reduction of CO2 Emissions During Production

CO2 Emissions from Production Activities (Global)

In fiscal 2017, total CO2 emissions from Fuji Electric’s
production activities amounted to 328,000 tons on a global
basis. Emission reduction initiatives included the consolidationof clean rooms in Japan (Matsumoto and Tsugaru) and theinstallation of solar power generation facilities with a combined
capacity of 92 kW overseas (Malaysia and Singapore).
In addition, we utilized Fuji Electric products and technologies
to introduce factory energy management systems capable oftracking and optimizing energy usage at the Suzuka Factory
and the Fukiage Factory.

(1,000 t-CO2)
400

386

384
85

134

300
200

299

327

252

100
0

2006

Japan

2010

Overseas

328

328

307

130

130

131

197

198

197

2015

2017 2020 (Target) (FY)2016

Global Target

Reductions to CO2 Emissions through Products* (Global)(1,000 t-CO2)

Reduction of Society’s CO2 Emissions
through Products

30,000Fuji Electric contributes to reduced CO2 emissions acrosssociety by supplying customers with products boasting highenergy efficiency.
Contributions to CO2 emission reductions from products
totaled 25,790,000 tons in fiscal 2017, an increase of
3,490,000 tons over fiscal 2016. Particularly large contributions
to emission reductions were made by inverters and otherpower electronics systems products (2,800,000 tons) andelectronic devices, such as power semiconductors that limit
heat production (540,000 tons).

15,00025,00020,00010,000022,30015,980

540
1,960
5,940
7,540

2015

25,790

690
2,420
7,960

8,290
13,580

11,2202016

30,000

820
2,830

2017

Power Electronics Systems
Power and New Energy
Food and Beverage Distribution
Target2020 (Target) (FY)Electronic Devices

CSR Activities* Amount of CO2 reduction is based on one year of operation of products shipped
for each fiscal year after fiscal 2009.
Calculated making reference to the quantification method of greenhouse gas
emission reductions stipulated in the electrical and electronics industries’ Action
Plan for Commitment to a Low-Carbon Society

Creation of a Recycling-Oriented Society
By promoting initiatives focusing on the 3Rs (reuse, reduce, recycle) as part of its business activities, Fuji Electric is working torealize zero waste emissions at its operating sites and thereby contribute to the creation of a recycling-oriented society.

Waste Reduction

Amount and Ratio of Waste Sent to Landfills in Japan

In Japan, Fuji Electric has achieved its goal of zero waste emissions every year since fiscal 2004. In fiscal 2017, we once
again achieved our target of reducing the ratio of waste sent tolandfills to below 0.5% with a ratio of 0.17%.
Overseas, the inability to recycle certain sludge (industrial
waste) produced during water treatment processes at the
Malaysia Factory caused the ratio of waste sent to landfills toincrease to 17.29% in fiscal 2015. However, this ratio fell to
8.07% in fiscal 2017 as a result of efforts to recycle this sludge
as material for use in making cement.

FY2020 target for(t)(%)
ratio of waste sent
80
0.8
59
to landfills of less
52
60
0.6
than 0.5%
40

0.26

0.24

20
0

2015

2016

Amount of Waste Sent to Landfills (left)

0.2

2017 (FY)0

Ratio of Waste Sent to Landfills (right)(t)(%)

1,500
1,000

1,766
17.29

1,750
14.31

500
0

2015

2016

Amount of Waste Sent to Landfills (left)

In view of the problem of global water resource depletion, Fuji
Electric is advancing measures to comply with wastewater
quality requirements, reduce wastewater, and achieve more
efficient use of water resources.
In fiscal 2017, domestic and overseas water recycling initiatives led total water usage to amount to 12,523,000 tons, evenless than the target of 13,575,000 tons.

0.4

0.17

Amount and Ratio of Waste Sent to Landfills Overseas
2,000

Efficient Use of Water Resources

37

40
FY2020 target for
ratio of waste sent
to landfills of less8.07
than 3%

791

30
20
10
0

2017 (FY)

Ratio of Waste Sent to Landfills (right)

Water Usage Volumes (Global)(1,000t)
20,00015,00010,000
5,000
0

Japan

12,957
6,160
6,797
2015

Overseas

13,165
6,721
6,444
2016

12,523

12,436

5,288
7,235
2017

2020 (Target) (FY)Global Target

Fuji Electric Report 201832

Social (Employees)

Fuji Electric focuses on creating workplace environments in which human rights are respected, occupational healthand safety are assured, and diverse workstyles are possible. In addition, we acknowledge that incorporating an arrayof values and perspectives to strengthen our competitiveness is important to the Company’s global growth. The
growth and diversity of our people is thus a top priority of our personnel strategy.

Respect for Human Rights

Diversity

Global Human Rights Initiatives

Support for Contributions by Diverse Human
Resources

The Fuji Electric Code of Conduct states that we should“respect and value all people.” This statement makes clear Fuji
Electric’s commitment to respecting the basic human rights ofeveryone at the Group as well as those of all the people itinteracts with. In addition, the Policy for Human Rights of the
Employees, which expands upon the human rights-related
policies of the Fuji Electric Code of Conduct, is being
implemented at domestic and overseas subsidiaries andeverywhere else throughout the Group to ensure human rights
are respected.
We also observe global standards, such as those of the UN
Global Compact and the UN Guiding Principles on Business andHuman Rights, in our efforts to ensure respect for human rights
with the aim of making Fuji Electric into a sustainable company
that is never involved in or complicit in human rights violations.
Major Initiatives in Fiscal 2017
 evel-specific training (new employees, supervisors, managers)LHuman rights workshops (managers)Human rights promotion at temp agencies and subcontractors
Training held by human rights organizations and municipal government
agencies (human rights and hiring representatives)

Expanding our business on a global
scale will require that we bolster ourcompetitiveness by building a team withdiverse values. For this reason,promoting diversity has been made a top
Highest rank of “Eruboshi”
priority in our personnel strategy.
certification (Ministry of Health,
Our efforts to empower female
Labour and Welfare)employees, one facet of promoting
diversity, have won the Company
inclusion in the Nadeshiko Brand forthree consecutive years. As anotherresult of these efforts, we were recently
Nadeshiko Brand (Ministry of
Economy, Trade and Industry
awarded the highest rank of “Eruboshi”
and Tokyo Stock Exchange)
certification. Fuji Electric is also actively
promoting increased employment of differently abledindividuals. We thus endeavor to expand the range of duties
performed by such individuals and encourage ongoing
employment while inviting individuals to take part in facility tours
and internships. Our goal in these efforts is to encourage as
many people as possible to participate in society.
Major Initiatives in Fiscal 2017

Occupational Health and Safety
Improvement of Safety Awareness and
Health Management
Fuji Electric’s basic philosophy is that the “health and safety ofworkers takes precedence over everything else,” positioning
occupational health and safety as a top priority for theCompany. In line with this philosophy, we actively communicate
the principles of our Health and Safety Basic Policy both insideand outside of the Company and are advancing occupational
health and safety initiatives based on this policy.
Our efforts in fiscal 2017 were not limited to assessing occupational health and safety levels at factories, but also included
safety competitions at divisions across Japan aimed at eradicating occupational accidents and work-related automobile
accidents. In addition, fiscal 2017 was the second year of
implementing our stress check program designed to prevent
mental health issues among employees. This program has
been embraced by many employees.
Major Initiatives in Fiscal 2017
 ealth and safety education programs
HFactory occupational health and safety assessments andworkplace safety patrols
Mental health education
Stress check system promotion

33 Fuji Electric Report 2018

 roject for promoting hiring of women with educational backgroundsPin science and engineering led by a team of female employees withsimilar backgrounds
Mentor system in which more experienced female employees mentor
newer employees
Enhanced and systematic cultivation of female managers
Level-specific educational programs (new employees, mid-careerhires, newly appointed supervisors, newly appointed managers)
Ongoing expansion of the scope of duties that can be performed bypeople with disabilities

Female Employees and Managers(FY)

Ratio of female employees
among newly hired employees
Ratio of female employees inmanagement positions
Number of female employees insupervisory positions

2016

2017

2018

2020 Target

17%

14%

20%

20%

1.9%

1.9%

1.9%

3.0%

192

215

225

300

Notes:
1. Data collected from Fuji Electric, Fuji Electric FA Components & Systems, Fuji
Office & Life Service, Fuji Electric IT Center, Fuji Electric Finance and Accounting
Support, Fuji Architect and Engineering, and Fuji Electric Frontier
2. Companies hiring new female employees are Fuji Electric and Fuji Electric FA
Components & Systems
3. Number of newly hired female employees refers to graduates from universities ortechnical colleges; Number of female employees in management positions refers
to employees of manager rank or above; Number of female employees insupervisory positions refers to employees of assistant manager class or above

Ratio of Differently Abled Employees to Total Employees
(FY)

2016

2017

2018

Number of differently abled
employees
Employment rate

360

370

378

2.43%

2.51%

2.57%

2018
Legally Mandated Ratio(From April 1, 2018)

2.2%

Work-Life Balance
Workstyle Reforms
We are strengthening initiatives to help employees achieve
work-life balance by creating workplace environments that are
more conducive to the efforts of diverse employees and thatenable people to fulfill their potential.
Fuji Electric promoted flexible workstyles through the introduction of Location Flexible working systems that enable
employees to work in satellite or home offices. At the sametime, we sought to reduce excessive work hours and encourage employees to acquire consecutive days of paid leave inorder to facilitate workstyles that achieve a better balance
between work and private life.

Location Flexible Working Systems

 cceleration of initiatives and enhancement of systems for reformingA
workstyles and promoting leave acquisition
Encouragement of male employees to take leave for childbirthby spouses and establishment of consultation venues at bases
Pair work training for employees returning to work after childcare leaveand their supervisors
Level-specific educational programs (new employees, mid-careerhires, newly appointed supervisors, newly appointed managers)

Paid Vacation Days Acquired Annually and Average Overtime
Work Hours in Japan
(FY)

2015

2016

2017

Paid vacation days acquired annually
Average overtime work hours

13.8
23.11

14.3
22.07

14.1
23.34

Human Resource Development
Global Development of Human Resources
Fuji Electric views the development of employee skills as a toppriority for management. Training at Fuji Electric is intended to give
form to the corporate philosophy and management policies and tocultivate professionals that can contribute to increased global
competitiveness. We are thus proactive in offering education andtraining opportunities for employees.
In fiscal 2017, we launched new global human resources
development programs based on a review of the issues faced inprior programs.

CSR Activities

In June 2017, Fuji Electric introduced Location Flexible working
systems that enable employees to work in locations other thanthe office at which they are posted. These systems help cutback on the amount of time devoted to transportation, whether
for everyday work or for business trips, making it possible toreallocate the saved time to one’s work. We therefore anticipate
benefits including more meaningful use of time and improved
work-life balance.
Initial usage numbers were low, but we have recently been
witnessing monthly growth in usage. Improvements are being
made to these systems with the goal of achieving further
increases in usage.

Major Initiatives in Fiscal 2017

Major Initiatives in Fiscal 2017
 evel-specific training (when receiving promotions or joining theL
Company, during 2nd year, etc.)
Selective training (future management candidates)
Specialized field training (engineering, business skills, etc.)
Manufacturing training (technical, engineering)Global employee training

Social (Contributions to Communities)
Striving to further strengthen its bonds of trust with society, Fuji Electric enacts a basic policy concerning local community
contribution activities that calls on us to (1) Meet the expectations of each era and region using the human resources andtechnologies nurtured through the Company’s business activities; (2) As a basic principle, engage in activities in areas
where the Company maintains business operations; and (3) Coordinate efforts on a global scale to ensure the largest
possible number of employees participate in the Company’s local community contribution activities. Based on this policy,
we are protecting the natural environment and promoting youth development in Japan and overseas.

Promotion of Youth Development
Fuji Electric holds science classes for elementary school and juniorhigh school students at major factories in Japan in the hopes ofencouraging them to take an interest in science. In addition toclasses for children, we also conduct programs for informing
elementary school and junior high school teachers about theCompany and practical science teaching skills.
Overseas, we support prospective engineers by helping
students enrolled in science and technology schools acquire
electrical engineering skills. These activities are conducted in
Asia, where Fuji Electric has operating bases.

Major Initiatives in Fiscal 2017
 cience classes for elementary school and junior high school
S
Company-related and practical science teaching skill programsfor teachers
Support for prospective engineers at vocational schools (Cambodia)
Donations of educational supplies to Hanoi University of Science andTechnology (Vietnam)

Science class (Saitama)

Support for prospective engineers
at vocational school (Cambodia)

Fuji Electric Report 201834

Corporate GovernanceFuji Electric is reinforcing its corporate governance toward the improvement of its management transparency and its
oversight function.
Furthermore, the Company has prepared its response measures to Japan’s Corporate Governance Code, which was instituted by the Tokyo Stock Exchange. These measures have been compiled into the Company’s Corporate Governance Report.

Corporate Governance Framework
Fuji Electric’s corporate governance framework consists of a
Board of Directors, which performs the functions ofmanagement supervision and making important decisions, andthe Board of Auditors, which is in charge of the management
audit function.
Comprising eight Directors (including three Outside
Directors) and five Auditors (including three Outside Auditors),
the governance framework is designed to reinforce theCompany’s management supervision and audit functions.

To this end, Fuji Electric actively calls on Outside Officers. The
Company considers independency based on criteria such as
those detailed on the following page when selecting Outside
Director and Outside Auditor candidates for the purpose of
appointing Outside Directors and Outside Auditors that are
sufficiently independent from the Company.
Fuji Electric uses the executive officer system to strengthenbusiness execution functions.

Corporate Governance Framework

Directors and Board of Directors

General Meeting of Shareholders
Fuji ElectricAppointment

Board ofDirectors

Appointment

Board ofAuditors

Audit

Oversight
ReportAppointment

Cooperation

Accounting
Auditor

Audit

Executive Committee
President
Deliberation
ReportExecutive
Officers
Standing
Auditors
Internal Auditing
DivisionsAuditors and Board of Auditors

Committees(Fuji Electric Compliance
Promotion Committee, etc)

Subsidiaries

Board ofDirectors

Auditors

Accounting
AuditorExecutive Committee
Members

Internal Auditing
Divisions
Major Regulations and Committees Comprising Internal Control Systems• Corporate Philosophy• Fuji Electric Code of Conduct• Fuji Electric Job
Authority Rules• Fuji Electric Compliance
Promotion Committee• Fuji Electric Compliance
Program

35 Fuji Electric Report 2018

The Board of Auditors inspects Fuji
Electric’s management and businessexecution. In addition to our proactive
appointment of Outside Auditors, auditing
functions are enhanced by having
Standing Auditors attend the Executive
Committee.

President, Executive Officers, andExecutive Committee

Executive Committee
President

The Board of Directors conducts decision
making and oversight of the management of Fuji Electric and the execution ofimportant business activities. Fuji Electric
proactively appoints Outside Directors
with a view to strengthening the management supervisory function from an objective perspective and maintaining thevalidity and appropriateness of businessdecisions. The terms of Directors havebeen set as one year in order to clarify
the management responsibilities of
Directors for each fiscal year and create aframework that is conducive to flexible
responses to operating environmentchanges.

• Business Ethics Helpline
System• Fuji Electric Risk
Management Regulations• Fuji Electric Rules forPrevention of Insider Trading
Regulations• Fuji Electric Group
Contingency Plan for
Emergency Situations• Auditor Liaison Committee,
etc.

The president has ultimate responsibility
for the execution of business and makes
decisions on matters of business execution other than those decided upon by
the Board of Directors. The Executive
Committee deliberates important mattersand makes reports to enable monitoringof the status of management asa consulting body for the president.
Executive Officers control the executionof the business of which they are in charge.

Outside Officers
Outside Officers fulfill the role of providing management supervision and management audits from an objective perspective.
At the same time, they offer useful advice and instructions fromvarious perspectives on all areas of Fuji Electric’s management,
helping to ensure the appropriateness of management decisions.
After their appointment, Outside Officers participate in internal technology presentations and business site inspections todeepen their understanding of Fuji Electric’s management.

In fiscal 2017, business site
inspections took place at Tokyo
Factory and Mie Factory. During
these inspections, Outside
Officers were given explanationsof the factories after which they
toured the actual production
floors and engaged in discussions with factory managers.

Internal technology presentation

Outside Directors

Name

Attendance at Board of
Directors Meetings in Fiscal
2017 (Meetings Attended /Meetings Held)

Type of Advice and Opinions Offered

Toshihito Tamba

13 / 13

Mr. Tamba offers useful advice and opinions on all areas of Fuji Electric’s management basedon his professional standpoint and considerable insight as a manager of listed companies.

Naoomi Tachikawa

13 / 13

Mr. Tachikawa offers useful advice and opinions on all areas of Fuji Electric’s management basedon his professional standpoint and considerable insight as a manager of listed companies.

10 / 10(Appointed in June 2017)

Mr. Hayashi offers useful advice and opinions on all areas of Fuji Electric’s management
based on his professional standpoint and considerable insight as an environmental engineer.

Attendance at Board of
Directors and Board ofAuditors Meetings in Fiscal
2017 (Meetings Attended /Meetings Held)

Type of Advice and Opinions Offered

Yoshitsugu Hayashi

Outside Auditors

Yoshiki Sato

10 / 13
8/9

Mr. Sato offers useful advice and opinions at meetings of the Board of Directors concerning
agenda items and the business of Fuji Electric. Based on his extensive experience andconsiderable insight as a manager at financial institutions, at meetings of the Board of Auditors,
he offers useful advice and opinions and confirms the legal compliance of the overall businessactivities of Fuji Electric.

Akiko Kimura

12 / 13
8/9

Ms. Kimura offers useful advice and opinions at meetings of the Board of Directors concerning
agenda items and the business of Fuji Electric. Based on her expert knowledge as an attorney,
at meetings of the Board of Auditors, she offers useful advice and opinions and confirms thelegal compliance of the overall business activities of Fuji Electric.

Tetsuo Hiramatsu

12 / 13
8/9

Mr. Hiramatsu offers useful advice and opinions at meetings of the Board of Directors
concerning agenda items and the business of Fuji Electric. Based on his professional
standpoint and considerable insight as an individual with experience managing financial
institutions, at meetings of the Board of Auditors, he offers useful advice and opinions andconfirms the legal compliance of the overall business activities of Fuji Electric.

CSR Activities

Name

Note: Notification has been submitted that these Outside Officers are Independent Directors / Auditors as required by financial instruments exchanges.

Independence Criteria for Outside Officers

The Company judges the applicable candidate to be fully independent from the Company when he/she does not fall under any of the conditions listed below in addition to criteria of independence stipulated by domestic financial exchanges including the Tokyo Stock Exchange.
(1)	Major shareholder
A major shareholder of the Company (who owns 10% or more of the voting rights) or its executor of business.
(2)	Major business partner
A business partner (consultants such as lawyers, certified public accountants, and tax accountants, as well as consulting firms
such as law firms, audit firms, and tax firms) or a person executing its business whose transactions with the Company exceed
2% of the annual consolidated net sales of the Company or the other entity in the past three fiscal years.
(3)	Major lender, etc.
A financial institution, other major creditor, or a person executing the business of these institutions that are indispensable for theCompany’s funding and on which the Company depends to the extent that it is irreplaceable.
(4)	Accounting auditor
A certified public accountant who belongs to an auditing firm that serves as the accounting auditor of the Company or employee,etc. of such auditing firm.
(5)	Donee
A person executing the business of an organization which receives a donation exceeding 10 million yen per year that is greaterthan 2% of its annual income from the Company for the past three fiscal years.
Fuji Electric Report 201836

Corporate Governance

Executive Remuneration
Fuji Electric has established a remuneration system and remuneration levels for Directors and Auditors that are deemed
appropriate for their respective duties and in accordance withthe shareholders’ mandate, giving due consideration to theaims of securing and maintaining competent personnel andproviding incentives for the improvement of business performance.

Standing Directors
As Standing Directors are charged with the responsibility of
improving consolidated operating performance for each fiscal
year and realizing improvements in corporate value over the
medium-to-long-term, their remuneration is structured andmanaged in two categories: base remuneration and performance linked remuneration.

Base Remuneration 
Base remuneration is a predetermined amount that is paid
to executives according to their position. A portion of the baseremuneration is contributed to the Director shareholding association to share the economic interests of shareholders and as
an incentive to make management aware of share value.

Performance-Linked Remuneration 
Performance-linked remuneration is paid only in instancesin which dividends are paid to all shareholders from retained
earnings. The total amount of executive performance remuneration shall be within 1.0% of consolidated net income for the
fiscal year prior to the date of payment in order to make the linkwith consolidated results for each fiscal year more clearly.

Outside Directors and Auditors
Remuneration for Outside Directors and Auditors is paid as apredetermined amount according to their rank, as Outside
Directors and Auditors are charged with the duty of supervisingor auditing the execution of duties across Fuji Electric. Outside
Directors and Auditors may acquire stock in the Company attheir own discretion.
Total Amount of Remuneration Paid to Directors and Auditors(Fiscal 2017)
Number of
Recipients

Amount of Payment(Millions of yen)

Directors [of which, Outside Directors]

10 [4]

267 [27]

Auditors [of which, Outside Auditors]

6 [3]

80 [22]

Notes: 1. T he amount paid to Directors does not include performance-linked
remuneration for fiscal 2017.
2. In addition to the above, ¥83 million was paid as performance-linked
remuneration for fiscal 2016 to Standing Directors (six recipients).
3. In addition to the above payment, the Company paid ¥3 million toemployees who concurrently assumed the office of Director (1 employee)
as salary for employees.

Internal Control System
The Fuji Electric Board of Directors determines basic policies
concerning the establishment of an internal control system as
stipulated in the Companies Act of Japan, and the Company
discloses those policies. In conjunction with the Companies
Act, Fuji Electric began disclosing information on the implementation of its internal control system, thereby taking steps torespond promptly and accurately to the demands placed upon
the Company by society. Such information included descriptionsof provisions for ensuring that Directors and employees performtheir duties in a matter that is compliant with laws andthe articles of incorporation.

37 Fuji Electric Report 2018

Audits by the Board of Auditors andInternal Audits
Audits by the Board of Auditors
Auditors attend meetings of the Board of Directors and otherimportant meetings based on the audit policies and duties
assignment established in accordance with the standards foraudits put forth by the Board of Auditors. Audits are performedby receiving explanations on the status of operational execution
from directors, reviewing documents pertaining to importantresolutions, investigating the status of operations and assets at
major operating sites, and requesting reports on operations
from subsidiaries as necessary. In addition, Auditors pursue
increased coordination with the Accounting Auditor and withinternal auditing divisions in order to ensure the effectiveness ofaudits across the Group.

Internal Audits
Internal auditing divisions perform internal audits based oninternal audit standards and annual audit plans. These audits
look at areas such as organizational management, risk
management, compliance, operational execution, andaccounting from the perspectives of legal compliance inbusiness activities, reliability of financial reporting, preservationof asset portfolios, and operational effectiveness and efficiency.
A total of 39 bases were audited in fiscal 2017. No risks orinadequacies with the potential to seriously impact
management were discovered.
Information on auditing activities is shared between theinternal auditing divisions of the Company and its subsidiaries inorder to ensure the effectiveness of internal audits acrossthe Group.

Investor Engagement
In June 2018, the Company consolidated and reorganized its
internal compliance rules to create the Fuji Electric Disclosure
Policy in conjunction with the introduction of the Fair Disclosure
Rule following a partial amendment of the Financial Instruments
and Exchange Act. Fuji Electric is committed to building upontrusting relationships with shareholders and other investors. To
this end, we practice timely, fair, and impartial disclosure of
information required by law and the regulations of the stock
exchanges on which the Company is listed as well as of otherinformation deemed to be of value to shareholders and investors. In addition, members of senior management take part in
activities for engaging with shareholders and other investors.
We strive to make effective use of the input gained throughthese activities by relaying it to the Board of Directors, management, and relevant divisions through reports to committees or
paper reports as deemed necessary.
Activities for Engaging with Investors (Fiscal 2017)
Analysts andinstitutional investors

 inancial results briefings:
F
Management plan briefing:Business strategy briefing:Small meetings
Factory tours

4
1
1

Private shareholders andinvestors

Factory tours for shareholders:(participants: 405)

4 factories

Compliance

We employ thorough measures to ensure compliance with laws and corporate ethics and always act with a highdegree of social conscience to achieve sustained corporate growth.

Basic Compliance Policy
The Fuji Electric Code of Conduct*1 states that we shall“respect, value and conform with all applicable laws andregulations,” and has been incorporated into our basic policy.
Based upon this policy, we have established and have been
implementing the Fuji Electric Compliance Regulations, which isa concrete guideline for compliance, and the Fuji Electric

Compliance Program, which brings together four aspects*2 ofdomestic and overseas compliance.
*1 Please refer to Fuji Electric’s corporate website for more information.
*2 (1) Establishment, revision, abolition and dissemination of internal rules;(2) Constant monitoring of status of compliance with laws and internal rules;(3) Auditing of status of compliance with laws and internal rules; and(4) Compliance education regarding laws and internal rules

Fuji Electric Compliance Regulations
Board of Directors
President (Executive Committee)
Business Ethics Whistle-Blowing Systems
Fuji Electric Compliance ProgramFuji Electric Compliance
Promotion Committee*3• Business Ethics Helpline(reports from employees)• Partner Hotline(reports from materials suppliers)
CSR Activities

Note: Hotline contact points are in-house points
and external lawyers*3 M eets twice each fiscal year to deliberate on compliance execution and planning with the goal of achieving full compliance with laws and social norms globally.
Composed of a representative director, compliance representatives, organization heads, the general manager of the Legal Office, Standing Auditors, and an external lawyer

Compliance Promotion Structure
The Fuji Electric Compliance Promotion Committee, which isheaded by a representative director and composed of the
managers responsible for regulating laws and/or acts, with anoutside expert (attorney) as an observer, has jurisdiction overcompliance of Fuji Electric.

Global Promotion of the Fuji Electric Compliance
ProgramFuji Electric is enhancing the compliance of its overseas operations. At all overseas sites, in addition to globally common
items that apply such as the prohibition of human rights violations and unfair dealings, including bribery and corruption, theFuji Electric Compliance Program reflects the laws and regulations of each region where we conduct business. We practicecompliance through the actions of all our subsidiaries in Japanand overseas on the basis of this program.

Operation of Whistle-Blowing Systems in Japanand Overseas 
To prevent infractions of laws, regulations, and internal rules
and ensure early detection, Fuji Electric has introduced theBusiness Ethics Helpline System. Under this system, employees in Japan and overseas can report violations or suspectedviolations of laws, regulations, or internal rules to Fuji Electric’s
president via the department responsible for compliance or
through an external lawyer.
We also operate a Partner Hotline System, which handles
notifications from our suppliers about Fuji Electric’s materials
procurement operations. Building more highly reliable trading
relationships with our suppliers is part of fulfilling oursocial responsibility.

Conducting Compliance Training
Fuji Electric has created a compliance training program forofficers and employees of the Company and its subsidiaries
that addresses matters they comply with and/or encounter inthe course of their business activities. This compliance training
has two main thrusts: level-specific and job-specific courses.
Level-Specific Training 
Level-specific training is tailored to newly appointed executivesof consolidated subsidiaries in Japan, newly appointed managers, and new employees.
Level-Specific Training
Training lasts a half to one
Attended (Fiscal 2017)
full day, with sessions focusing
Newly appointed executives
22
on the Fuji Electric compliance
Newly appointed managers
137
framework and the Fuji Electric
New employees
215
Compliance Program.

Job-Specific Training 
Divisions responsible for legal affairs conduct job-specific trainingthat features items for consideration in practical businesssituations. In fiscal 2017, classroom-based training was
conducted mainly for the sales and administrative unit personnelof domestic and overseas companies covering a variety ofthemes, including antimonopoly laws and the prevention ofcorruption. Furthermore, we
conducted e-learning programsfor employees at all bases,
including those overseas.

Training at an overseas base

Fuji Electric Report 2018

38

Risk Management

Fuji Electric is strengthening its risk management to maximize corporate value and minimize the potential impact of risks.

Basic Policy on Risk Management
Based on the Fuji Electric Risk Management Regulations, whichwere formulated in May 2006, the Company manages risk in acoordinated, systematic manner.
We will practice appropriate management and counter
various risks that could affect the Company’s management

Types of Risk and Risk Management
SystemFuji Electric has divided risks into “External risks” and “Businessrisks,” with Business risks classified into “Strategy risks,”“Operational risks”, and “Common risks,” and conducts risk
management optimized for each category.
Countermeasures for risks that are common to the whole ofFuji Electric are implemented by the Headquarters Corporate
Division while countermeasures for business risks are
spearheaded by the relevant business divisions and affiliatecompanies. Business risks are analyzed each year and factored
into business plans.

Strengthening of Business Continuity
Capabilities
Fuji Electric aims to continue core operations even if unexpected
events such as natural disasters and accidents occur, continuing
to uphold social responsibilities as a company and providing
a stable supply of high performance, high-quality
products and services required by our customers.
Fuji Electric received Resilience certification under the program established by the Cabinet Secretariat’s National Resilience Promotion Office inrecognition of active efforts to ensure business continuity.

Fire Safety and Disaster-Preparedness Initiatives
Based on our Disaster Prevention and Procedural Manual, we
have created a disaster-preparedness headquarters system.
Meanwhile, at operating sites and affiliates, we have put inplace thorough measures to ensure that structures and facilities
are earthquake resistant, stockpile emergency goods, andconduct regular drills, among other measures.

in order to prevent risks from materializing (crisis situations).
At the same time, we will strive to minimize the impact onmanagement in the event that risks materialize.

Risk Classification System
Business Risks

External Risks
Economic trends
 ttacks fromA
outside aturalN
disasters andaccidents
othersStrategy Risks

Operational Risks

Common Risks

 anagementMstrategyOrders, sales inance andFaccounting

 orporateC
restructuring
 artnering andPwithdrawal
others evelopment,Ddesign rocurement,P
manufacturingServiceothersInformation
systems
Legal and ethicalEnvironment
others• Risks related to business activities: Managed by businessdivisions and affiliate companies• Risks common to all of Fuji Electric: Managed by the
Headquarters Corporate Division

Business Continuity Initiatives
In addition to fire safety and disaster-preparedness initiatives,
Fuji Electric has formulated a business continuity plan (BCP) at thehead office, which acts as a command center during disasters, andat factories that house a large number of key management
resources. We have also established Companywide BCPs for
procurement sections, which manages the supply chain, and for
IT sections, which manages the information systems.
In fiscal 2017, we once again expanded the range of products
covered under the BCP. In addition, we conducted simulation drills
based on earthquake and explosion scenarios
targeting business supervisors and basemanagers. Furthermore, domestic factory
managers underwent public relations drills while
all employees took part in safety confirmation
Simulation drill
drills. Through these efforts, we sought toimprove our ability to respond to natural disasters.

Information Security
Implementation of Security Measures

External Certification Related to Information Security

To protect confidential and personal information properly, Fuji Electrichas formulated and implemented a policy and regulations related to
information security with consideration for the laws of relevant
countries. We seek to strengthen information security by instituting
annual training programs for employees and endeavor to prevent
information leaks. In addition, we have developed a countermeasuresystem, established a computer security incident response
team (CSIRT) and a security operation center (SOC) to handle evermore diversified cyber security risks, and implement monitoringand defense measures to ensure preparedness for attacks.

Companies that handle customers’ confidential and personal
information and require a high-level information security
management have acquired external certification.
As of April 1, 2018, three departments at Fuji Electric Co., Ltd.
and two subsidiaries have acquired information security
management system (ISMS) certification. In addition, Fuji ElectricCo., Ltd. and three subsidiaries have acquired Privacy
Mark certification.

Prevention of Infringement of Intellectual
Property Rights
As part of our intellectual property activities, we employ a system
to monitor other companies’ patents on a daily basis to prevent
any inadvertent infringement of patents held by third parties.

39 Fuji Electric Report 2018

To prevent infringement, we also conduct compliance training
for employees.
Note: Please refer to page 26 for more information on intellectual property initiatives.

List of Officers (As of July 1, 2018)

Directors

Michihiro Kitazawa

Kenzo Sugai

Toshihito Tamba

Naoomi Tachikawa

Yoshitsugu Hayashi

President and Chairman of theBoard of Directors

Representative Director

Outside Director

Outside Director

Outside Director

Chairman & Co-CEO,Representative Director, Tokyo
Century Corporation

Adviser, Furukawa ElectricCo., Ltd.

Professor, Institute of Scienceand Technology Research,
Chubu University

Michio Abe

Masatsugu Tomotaka

Junichi Arai

Director

Director

Director

Yoshio Okuno

Junichi Matsumoto

Yoshiki Sato

Akiko Kimura

Tetsuo Hiramatsu

Standing Auditor

Standing Auditor

Outside Auditor

Outside Auditor

Outside Auditor

Chairman and Representative
Director, Asahi Mutual Life
Insurance Company

Of Counsel, Anderson Mori &Tomotsune

President, NIPPONTOCHI-TATEMONO Co., Ltd.

Auditors

Corporate Information

Executive Officers
President

Michihiro Kitazawa

General Management

Executive Vice President

Kenzo Sugai

Assistant to the President, Corporate General Manager, Sales Group

Senior Managing
Executive Officers

Michio Abe

Corporate General Manager, Production & Procurement Group

Masatsugu Tomotaka

Corporate General Manager, Power Electronics Systems Business GroupManaging Executive Officers

Junichi Arai

Corporate General Manager, Corporate Management Planning Headquarters, General Manager,
Export Administration Office, In charge of compliance management and crisis management

Executive Officers

Takeshi Kadoshima

General Manager, Human Resources and General Affairs Office

Masahiro Fujiwara

Corporate General Manager, Power and New Energy Business Group

Kenji Goto

Deputy Corporate General Manager, Power Electronics Systems Business Group

Yasuhiro Takahashi

Corporate General Manager, Food and Beverage Distribution Business Group

Susumu Shinmura

Deputy Corporate General Manager, Sales Group

Masahiro Morimoto

Deputy Corporate General Manager, Power Electronics Systems Business GroupToru Housen

Corporate General Manager, Electronic Devices Business Group

Shiro Kondo

Corporate General Manager, Corporate R&D Headquarters

Note: Please refer to our website for each officer’s brief history.

Fuji Electric Report 201840

Corporate Data

Company Information (As of March 31, 2018)
Company Name
Established
Head Office
Head Office Business Address
Capital Stock
Employees (Consolidated)
Net Sales (Consolidated)
Stock Code

FUJI ELECTRIC CO., LTD.
August 29, 1923
1-1, Tanabeshinden, Kawasaki-ku, Kawasaki-shi 210-9530, Japan
Gate City Ohsaki, East Tower, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan¥47.6 billion
27,009 (Domestic 17,704, Overseas 9,305)¥893.5 billion (Year ended March 31, 2018)
6504

Stock Information (As of March 31, 2018)
Issued and Outstanding Shares
Number of Shareholders
Major Shareholders

746,484,957
41,539Number of shares(1,000s)

Shareholders’ names

Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
FUJITSU LIMITED
Asahi Mutual Life Insurance Company
FANUC CORPORATION
Japan Trustee Services Bank, Ltd. (Trust Account 5)
Japan Trustee Services Bank, Ltd. (Trust Account 7)
Mizuho Bank, Ltd.
FURUKAWA CO., LTD.
STATE STREET BANK WEST CLIENT-TREATY 505234

Voting rights(%)

63,06455,73820,333
19,775
13,421
11,514
11,257
11,254
11,025
9,602

8.83
7.80
2.85
2.77
1.88
1.61
1.58
1.58
1.54
1.34

Notes: 1. Treasury stock of 32,215,710 shares is excluded from the above list of top 10 shareholders.
		 2. The ratio of shareholding is calculated by deducting the number of treasury stock from the total number of shares
outstanding based on the provisions of the Ordinance for Enforcement of the Companies Act.

Share Distribution by Shareholder TypeType

Financial institutions / securities firms
Other domestic corporations
Foreign corporations
Individuals and others
Total

Number ofshareholders

Number of shares

Holding
(%)

168
538
590
40,243
41,539290,883,498
72,356,975
249,888,209
133,356,275
746,484,957

38.97
9.69
33.48
17.86
100.00Note: “Individuals and others” includes treasury stock.

Share Price and Trading Volume Fluctuations (Tokyo Stock Exchange)
(Yen)
1,000
800
600
400

(Millions of shares)
200
150
100
50
0

4

5

6

7

8
2017

Share Price

Trading Volume

41 Fuji Electric Report 2018

9

10

11

12

1

2
2018

3

(Month)Consolidated Subsidiaries and Equity-Method Affiliates (As of July 1, 2018)
Consolidated Subsidiaries (Domestic): 23
Fuji Electric FA Components & Systems Co., Ltd.

Fuji Electric Tsugaru Semiconductor Co., Ltd.

Fuji Furukawa Engineering & Construction Co., Ltd.*1

Shinshu Fuji Electric Co., Ltd.

Fuji Electric IT Solutions Co., Ltd.

Hoei Plastics Co., Ltd.

Hoei Denki Co., Ltd.

Mie Fuji Co., Ltd.

Hokkaido Fuji Electric Co., Ltd.

Fuji Electric Retail Service Co., Ltd.

Fuji Electric Meter Co., Ltd.

Fuji Electric F-Tech Co., Ltd.

Fuji IT Co., Ltd.

Fuji Electric Finance and Accounting Support Co., Ltd.

Ibaraki Fuji Co., Ltd.

Fuji Electric IT Center Co., Ltd.

Hakko Electronics Co., Ltd.

Fuji Office and Life Service Co., Ltd.

Fuji Electric FA Service Co., Ltd.

Fuji Electric Technica Co., Ltd.

Fuji Festec Co., Ltd.

Chichibu Fuji Co., Ltd.

Fuji Electric Power Semiconductor Co., Ltd.
*1 Fuji Furukawa Engineering & Construction Co., Ltd., is listed on the second section of the Tokyo Stock Exchange.

Equity-Method Affiliates (Domestic): 3
METAWATER Co., Ltd.*2

Fuji Furmanite Co., Ltd.

METAWATER SERVICE Co., Ltd.
*2 METAWATER Co., Ltd., is listed on the first section of the Tokyo Stock Exchange.

Consolidated Subsidiaries (Overseas): 49
Fuji Electric (Shenzhen) Co., Ltd.

Fuji SMBE Pte. Ltd.

Fuji Electric Dalian Co., Ltd.

Fuji Electric (Thailand) Co., Ltd.

Fuji Electric Motor (Dalian) Co., Ltd.

Fuji Electric Manufacturing (Thailand) Co., Ltd.

Dalian Fuji Bingshan Vending Machine Co., Ltd.

Fuji Tusco Co., Ltd.

Dalian Fuji Bingshan Vending Machine Sales Co., Ltd.

PT Fuji Electric Indonesia

Fuji Electric (Hangzhou) Software Co., Ltd.

Fuji Electric India Private Ltd.

Fuji Electric FA (Asia) Co., Ltd.

Fuji Gemco Private Limited.

Fuji Electric Hong Kong Co., Ltd.

Fuji Electric Philippines, Inc.

Hoei Hong Kong Co., Ltd.

Fuji Electric (Malaysia) Sdn. Bhd.

Fuji Electric Taiwan Co., Ltd.

Fuji CAC Joint Stock Company

Fuji Electric Korea Co., Ltd.

Fuji Electric (China) Co., Ltd.

Fuji Electric Corp. of America

Shanghai Electric Fuji Electric Power Technology (Wuxi) Co., Ltd.

Fuji Electric Europe GmbH

Wuxi Fuji Electric FA Co., Ltd.

Fuji Electric France S.A.S.

Fuji Electric (Changshu) Co., Ltd.

Reliable Turbine Services LLC

Fuji Electric (Zhuhai) Co., Ltd.

Fuji SEMEC Inc.



Corporate Information

Fuji Electric Asia Pacific Pte. Ltd.

Including the 32 above-listed companies, 49 companies.

Equity-Method Affiliate (Overseas): 1
FUJI FURUKAWA E&C (Thailand) Co., Ltd.

Fuji Electric Report 201842

Global Network(As of July 1, 2018)* Having manufacturing capabilities♳ Hokkaido Division♴ Hokkaido Fuji Electric Co., Ltd.

■■

㉒ Hokuriku Division㉓ Hakko Electronics Co., Ltd.*■♵ Fuji Electric Tsugaru Semiconductor Co., Ltd.*♶ Tohoku Division■㉙ Kansai Division㉚ Hoei Denki Co., Ltd.
㉛ Kobe Factory*

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Chugoku Division■■
Kyushu Division

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■

■ ■
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Shikoku Division■■■■■

Okinawa■

43 Fuji Electric Report 2018㉔ Matsumoto Factory*㉕ Yamanashi Factory*㉖ Fuji Electric Meter Co., Ltd.*㉗ Fuji Electric Power Semiconductor Co., Ltd.*㉘ Shinshu Fuji Electric Co., Ltd.*

■■

■

■
■

⓰ Chubu Division⓱ Fuji Electric FA Service Co., Ltd.
⓲ Mie Factory*⓳ Suzuka Factory*⓴ Mie Fuji Co., Ltd.*㉑ Hoei Plastics Co., Ltd.

Okinawa Division

■
■
■

■

■
♷ Kawasaki Factory*♸ Chiba Factory*♹ Fukiage Factory*⓼ Otawara Factory*⓽ Chichibu Fuji Co., Ltd.*⓾ Ibaraki Fuji Co., Ltd.*⓫ Facility Technology Center⓬ Fuji Electric F-Tech Co., Ltd.*⓭ Higashikanto Department⓮ Kitakanto Department⓯ Fuji Furukawa Engineering& Construction Co., Ltd.

Tokyo
Head Office
Hatchobori BranchTokyo Factory*
Fuji Electric FA Components & Systems Co., Ltd.
Fuji Electric Technica Co., Ltd.
Fuji Electric Finance and Accounting Support Co., Ltd.
Fuji Office & Life Service Co., Ltd.
Fuji IT Co., Ltd.
Fuji Electric IT Center Co., Ltd.
Fuji Electric IT Solutions Co., Ltd.
Fuji Festec Co., Ltd.
Fuji Electric Retail Service Co., Ltd.

■Europe
Americas♳ Fuji Electric Europe GmbH
❷ Switzerland Branch❸ U.K. Branch❹ France Branch❺ Italy Branch❻ Spain Branch♹ Fuji N2telligence GmbH
⓼ Fuji Electric France S.A.S.*
9 Middle East Branch⓾ Fuji Electric Corp. of America⓫ Virginia Factory*⓬ Chicago Branch⓭ Santa Ana Branch⓮ Fremont Branch⓯ Reliable Turbine Services LLC⓰ Fuji SEMEC Inc.*

❸
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South Asia
⓱ Fuji Electric India Private Ltd.
⓲ India Factory*⓳ Ahmedabad Branch⓴ Pune Branch㉑ Chandigarh Branch㉒ Delhi Branch㉓ Hyderabad Branch㉔ Bangalore Branch㉕ Chennai Branch㉖ Kolkata Branch㉗ Fuji Gemco Private Limited*

Affiliated Company
Overseas Offices* Having manufacturing capabilities■

Southeast Asia
㉘ Fuji Electric (Thailand) Co., Ltd.
㉙ Fuji Electric Manufacturing(Thailand) Co., Ltd.*㉚ Fuji Tusco Co., Ltd.*㉛ Fuji Electric (Malaysia) Sdn. Bhd.*㉜ Fuji Electric Asia Pacific Pte. Ltd.
㉝ Philippine Branch㉞ Fuji SMBE Pte. Ltd.*㉟ PT Fuji Electric Indonesia㊱ P.T. Fuji Metec Semarang*㊲ Fuji Electric Vietnam Co., Ltd.
㊳ Fuji CAC Joint Stock Company㊴ Fuji Electric Philippines, Inc.*㊵ Fuji Electric Co., Ltd.
(Myanmar Branch Office)㊶ Rep. Office of Fuji Electric Co., Ltd.
(in Cambodia)㊷ Fuji Electric Co., Ltd.
Construction Representative
Office Indonesia

Corporate Information

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■■■China■■■■■■■Asia■■■■■■/ East㊸ Fuji Electric (Zhuhai) Co., Ltd.*㊹ Fuji Electric (Shenzhen) Co., Ltd.*㊺ Fuji Electric FA (Asia) Co., Ltd.
㊻ Fuji Electric Hong Kong Co., Ltd.
㊼ Hoei Hong Kong Co., Ltd.
㊽ Fuji Electric (Changshu) Co., Ltd.*㊾ Wuxi Fuji Electric FA Co., Ltd.*㊿ Fuji Electric (Hangzhou) Software Co., Ltd.
� Fuji Electric (China) Co., Ltd.
� West China Branch� South China Branch
� North China Branch� Shanghai Electric Fuji Electric Power Technology(Wuxi) Co., Ltd.*� Fuji Electric Dalian Co., Ltd.*� Fuji Electric Motor (Dalian) Co., Ltd.*� Dalian Fuji Bingshan Vending Machine Co., Ltd.*� Dalian Fuji Bingshan Vending Machine Sales
Co., Ltd.
� Fuji Electric Taiwan Co., Ltd.
� Fuji Electric Korea Co., Ltd.
� Beijing Rep. OfficeFuji Electric Report 201844

External Evaluation 
Fuji Electric has been selected as a component of the following
socially responsible investment (SRI) indexes, as a company
with outstanding CSR performance.

We have received the following awards and certification inrecognition of our outstanding initiatives to promote diversity.

Care for the Environment 

Gate City Ohsaki, East Tower,
11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Contacts: CSR and Public Relations Dept., President’s Office
TEL: +81-3-5435-7111 https://www.fujielectric.com

00A9-E-0126 Printed in Japan 2018.8