Contents
03

09

ProfilePromoting Material Initiatives for Management

03

Corporate Philosophy and Management Policies

1505

Fuji Electric’s Energy and Environment Businesses

07

Contributing to the Reduction of Greenhouse Gas EmissionsI nterview with the President
and COO	We Must Become More
Resilient to Change and Take on
the Challenge of Creating New
Social Value through Energy andEnvironmental Technologies

57

Promoting Material Initiatives for Management

31

Research and Development17	
FY2023 Medium-Term Management Plan
“Reiwa Prosperity 2023”

33

Environment

37

Human Resources

21

Overview of Segments

39

Corporate Governance

21

Power Electronics Energy

49

Compliance23Power Electronics Industry

51

Risk Management

25

Semiconductors

55

Sustainable Procurement

27

Power Generation

29

Food and Beverage DistributionM essage from the Chairman of
the Board and CEO	Contributing to the Developmentof the SDGs and the Realizationof a Decarbonized Society
through Our Energy andEnvironment Businesses

13

15

Basic Information
57

Consolidated Financial and Non-Financial Highlights

59

Corporate Data

60

History

Regarding the Fuji Electric Report
Fuji Electric Report is an integrated report that is prepared and published for the purposeof facilitating understanding of the Company’s whole corporate activities among its
stakeholders, mainly shareholders and investors. Fuji Electric places great importance on
clear communication of its material issues of ESG (environment, society, governance) andinitiatives aimed at improving sustainability to enhance long-term corporate value.
Covered organizations in the chapter “Promoting Material Initiatives for Management” areFuji Electric Co., Ltd. and its consolidated subsidiaries in Japan and overseas, which arecollectively referred to as Fuji Electric.

About the Front Cover
The front cover of this report reflects Fuji
Electric’s attitude toward growth and enhancing
corporate value over the long term in addition tocontributing to developing SDGs and realizing asustainable society, leveraging synergies in its
energy and environment businesses.

For details of financial and non-financial information, please refer to the Company’s website
and other disclosure materials.
Investor Relations Website:
https://www.fujielectric.com/ir/ nvironmental, Social, and Governance Website:Ehttps://www.fujielectric.com/company/csr/

Disclaimer Regarding Forward-Looking Statements
Statements made in this report regarding estimates or projections are forward-looking statements based on the Company’s judgments andassumptions in light of currently available information. Actual results may differ materially from those projected as a result of uncertainties inherent insuch judgments and assumptions as well as changes in business operations or other internal or external conditions. Accordingly, the Company gives
no guarantee regarding the reliability of any information contained in these forward-looking statements. Investors are encouraged to also reference
documents submitted by the Company in accordance with the Financial Instruments and Exchange Act of Japan and other disclosure materials.

1

Fuji Electric Report 2022

Fuji Electric Report 20222

Corporate Philosophy

Fuji Electric’s corporate philosophy hinges on a mission to contribute to prosperity, encourage creativity,and seek harmony with the environment, while the Company’s management policies are centered on
the notion of contributing to society through its energy and environment businesses.
By putting this corporate philosophy and management policies into practice based on its Corporate Code of Conduct,
which sets forth guidelines for the conduct of employees, Fuji Electric and its employees, together with customers andbusiness partners, will aim to resolve social and environmental issues, create customer value, develop the SDGs,
and contribute to the creation of a responsible and sustainable society.
Through our energy and environment businesses, we aim to benefit society and become a company ofProfileCorporate Philosophy and Management Policies

We, Fuji Electric, pledge as responsible corporate citizens in a global society tostrengthen our trust with communities, customers and partners.
Contribute toprosperity

sustainable growth.

SloganEncourage
creativity

Seek harmony withthe environment

To be enthusiastic, ambitious and sensitive.

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

Contribute to the creation of a Responsible and Sustainable Society

Fuji Electric Code of Conduct
In order to practice our corporate philosophy to fulfill social responsibility and act
with high ethical standards while understanding and complying with relevant laws,
regulations, international rules, and the spirit of such regulations and rules, bothResolution ofSocial andEnvironmental
IssuesCreation ofCustomer Valuedomestically and abroad, Fuji Electric and its employees have defined this code as afoundation for decision-making and behavior.
1. Respect and value all people

6. Respect and value interaction with society

2. Respect and value our customers

7. Make global compliance a top priority

3. Respect and value our business partners

7-1. Thorough compliance

4. Respect and value our shareholders

7-2. Thorough risk management

and investors

Corporate Philosophy
Contribute to prosperity

Encourage creativity

8. Top management will thoroughly practice

5. Respect and value the global environment

this standard

Further information about Fuji Electric Code of Conduct is available at our website.
https://www.fujielectric.com/company/conduct.html

Seek harmony withthe environment

Brand Statement

Management Policies
Expand Energy and Environment Businesses

Brand Promise

Through our pursuit of innovation in electric and thermal energy technology,

Fuji Electric Code of Conduct
3

Fuji Electric Report 2022

we develop products that maximize energy efficiency and lead to a responsible
and sustainable society.
Fuji Electric Report 2022

4

Profile

Fuji Electric’s Energy and Environment Businesses
We will ceaselessly pursue synergies between our core power semiconductor and power electronics technologies
and contribute to the creation of a responsible and sustainable society in industrial and social infrastructure fields
through the four businesses of Power Electronics Systems, Semiconductors, Power Generation, and Food andBeverage Distribution.

Clean energyof energy

Power Electronics

Systems

EnergyPower Generation

Courtesy of PT.SEML

Stable supply

Energymanagement

Substation
systems

Energy saving

Industry

Power supply andfacility systems

Geothermal power generation

Factory
automation

SystemSolutions

Engineering

Services

Process
automation

Automation

Food and Beverage
Distribution

Socialsolutions
Vending machines

Solar power generation

Store facilities and equipment
Power conditioning
systems

Transformers

Switchgear
and controlgear

Power distribution andcontrol equipment

Uninterruptible
power systems

Semi

Inverters

MotorsServo systems

Controllers

Measuring
instruments

Smartmetersconductors

Industrial field

Automotive field

Priority SDGs to Be
Addressed throughOur Businesses
Spread of renewable energy use
Improvement of energy efficiency

5

Fuji Electric Report 2022

Reduction of CO2 emissions fromindustrial processes

Building safe and secure urban
infrastructure services

Reinforcement of social andindustrial infrastructure

Development of sustainabletransport systems

Efficient use of natural resources
Rigorous management and reductionof emissions of chemical substances
and waste

Reducing society’s CO2 emissions
through products
Reducing GHG emissions during
production
Fuji Electric Report 2022

6

To reduce greenhouse gas emissions, energy suppliers have been promoting the use of clean energy, and energy
consumers have been promoting energy saving, electrification, and power-source distribution through the introduction

Reducing society’s CO2 emissions throughour productsof private power generation facilities.

To help limit the rise of Earth’s temperature to no

45.44

Fuji Electric’s strengths lie in our ability to develop and manufacture power semiconductors—energy saving

more than 1.5°C compared to pre-industrial levels,

key devices—and to then provide comprehensive services featuring power electronics equipment using such

Fuji Electric has defined goals of reducing society’s

Power
Generation
15.28

semiconductors, systems comprised of these pieces of equipment, and engineering work.

CO2 emissions through its products, and we conduct

We therefore contribute to the reduction of greenhouse gas emissions throughout the supply chain, on both the energy

corporate activities accordingly. (For details, please

supply and demand sides.

refer to Environment on P33.)

Reduction of CO2 Emissions by Segment
in Fiscal 2021 (Million tons)

Over 59.00

Food andBeverage Distribution
1.05
Semiconductors
6.25

Power
Electronics
22.86
Fiscal 2021 Results

Fiscal 2030 Target

Supply side

Demand side

Factories
Power companies andpower producers

Facilities

Ports

Automobiles

Railways

Reduction of
CO2 emissions

22.86

Power Electronics
Reduction of
CO2 emissions

Power Generation

ProfileContributing to the Reduction of Greenhouse Gas Emissions

Reduction of
CO2 emissions

15.28

milliontons

6.25

Semiconductors

milliontons

milliontons

Reduction of
CO2 emissions

1.05

Food and Beverage Distribution

milliontons

Making clean energy mainstream

Stabilizing the energy supply

Spreading energy-efficient equipment and systems

Improving the electrification rate

We have a broad clean energy lineup, including

Through package proposals for data centers, factories, and others that include

We help factories, buildings, facilities, and others save energy through energy

We use our technical capabilities—with which we havegeothermal, hydro, solar, wind, and fuel cells. Byboth the supply and maintenance of a wide range of products and systems,saving proposals, including the visualization of energy saving issues by utilizing

pursued the increased miniaturization and efficiency

combining the above with the technologies that enable

including highly efficient uninterruptible power systems and environmentallymeasuring and control technologies we have developed over the years as wellof power electronics equipment—to contribute to

the stable supply of renewable energy to help expand

friendly substation equipment, we contribute to the stable supply and optimization

as effective use of power electronics equipment with our highly efficient power

the improvement of the electrification rate, including

the use of clean energy and distributed power sources.

of power as well as the reinforcement of industrial infrastructure.

semiconductors, drive control systems, and thermal energy.

power semiconductors for electrified vehicles andelectric propulsion systems for vessels.

Courtesy of PT SEML

Geothermal power

Solar power

Substation equipment

Monitoring and control
systems for power grids

Energy management systems(EMS)

Inverters

Motors

Semiconductors

Power storage systems

Uninterruptible power systems

Power conditioning systems

EMS solutions

Hybrid heat pump vending
machines

Non-leak showcases

Optimizing and increasing the efficiency of the7

Fuji Electric Report 2022

Electric propulsion systems
for vessels

energy supply-demand balance through AI

Thanks to our efforts related to smart community demonstration projects both inJapan and overseas until now, we have built up know-how related to achieving

sophisticated power grid operations, and our strengths include technologies for

optimizing both the energy supply and usage efficiency.

We capitalize on our analytics and AI technologies—for which we boast an extensive

Power semiconductors
for electrified vehicles

track record—to contribute to stabilization and optimization by using on-site data.
Fuji Electric Report 2022

8

Message from the Chairman of the Board and CEO

Michihiro Kitazawa
Chairman of the Board and CEO

Achieved fiscal 2023 operating margin target
two years ahead of schedule
Aiming for further earnings growth in powerelectronics and power semiconductors

and income, with operating income, operating margin, andnet income all at record highs. With an operating marginof 8.2%, we achieved the target of the Medium-Term
Management Plan two years ahead of schedule. This is the

In April 2022, with the aim of strengthening management

result of our efforts over the past decade or so to improveand business execution functions, Fuji Electric launched athe structure of our factories, which are the source of our

new structure with a Chairman and CEO (Chief Executive

profits, and to augment our manufacturing and procurement

Officer) and a President and COO (Chief Operating Officer).

capabilities through supply chain reforms centered on

As Chairman and CEO, I will continue to have responsibility

in-house production and automation, based on the concept

and authority over the Board of Directors and the Executiveof local production for local consumption.
Fiscal 2022 is an important year as the final year ofCommittee, which are responsible for important management
decision-making functions, and will continue to solidify our

preparation for the achievement of the Medium-Termfoundation as a sustainable growth company based on ourManagement Plan. Having set must-reach targets of net

Corporate Philosophy and Management Policies.

sales of ¥960 billion, operating income of ¥82 billion, and an

Our five-year Medium-Term Management Plan—Reiwa

operating margin of 8.5%, we aim to further expand earnings

Prosperity 2023—which ends at the close of fiscal 2023,

in power electronics and power semiconductors. The biggest

targets net sales of ¥1 trillion and an operating margin of 8%

challenge is to expand sales in the power electronics business,or more. Under the plan, we will strengthen our operating

which accounts for about 60% of total sales. Globally,

foundation for Fuji Electric’s further development in fiscal 2024

investments toward a decarbonized society, such as clean

and thereafter and aim for prosperity together with society.

energy, energy saving, and electrification, are expanding, andFrom the first year of the start of the plan, the businesswe must step up efforts to capture this new demand andenvironment surrounding the Company changed dramatically.

reap the benefits. In power semiconductors, another pillarof our business, we intend to respond to strong customer

Maximize employees’ strengths as a teamand strive for sustainable growthclean energy-related products. We are contributing to the

In addition to the U.S.-China trade friction in fiscal 2019 anddevelopment of the SDGs and the realization of a decarbonized

the COVID-19 pandemic in fiscal 2020, in fiscal 2021, changes

demand, steadily increase production capacity, and solidify

Since its establishment in 1923, Fuji Electric has contributed tosociety through our businesses, centered on the powerin the international political situation added to the impact ofour credibility and trust. As for power generation and food andsolving social and environmental issues and creating customer

electronics and power semiconductor businesses. In addition,soaring material prices, material shortages, and other factors

beverage distribution, they are strong businesses with a highvalue through its cutting-edge energy and environment

we believe that when it comes to the ESG issues that form

that spread throughout the supply chain.

market share and play an important role in supporting social

technologies. The conceptual underpinning of this is ourthe foundation of our operations, it is important to set goals

Although net sales did not grow as planned due to thisCorporate Philosophy. As responsible corporate citizens in afrom a high-level management perspective, to share them

unexpectedly challenging business environment, our fiscal

global society, we seek to deepen our relationships of trustwith employees, and then work as a team to put them into

2021 results surpassed the previous fiscal year in both sales

by valuing local communities, customers, and partners underpractice. Under the concept of “employees first,” the growth of

our corporate mission: “contribute to prosperity,” “encourage

our employees leads to the prosperity of our company, which

creativity,” and “seek harmony with the environment.”

creates a virtuous cycle in which profits earned through ourThis is exactly in line with the concept of the Sustainablebusiness activities are returned to employees, shareholders,Development Goals (SDGs), which aim for integrated

and society. This is how we aim to achieve sustainable growth.

on a global scale is the solution of problems for realizing
a decarbonized society, and this is expanding business

Develop the
SDGs

Realize adecarbonizedsocietyopportunities in our core energy and environment businesses.
Our greatest strength is our ability to provide comprehensive
solutions to the needs of our customers from the energy

Energy and Environment Businesses

supply side to the demand side, from stable energy supply
to energy saving and automation solutions and more. We

Clean energy

do this by offering power electronics equipment with worldleading power semiconductors, systems that combine such
equipment, and bundled engineering services, in addition to9

Fuji Electric Report 2022

Power
Generation

Stable energy
supplyPower
Electronics
Systems

Semiconductors

infrastructure, and we will continue to operate them with afocus on profitability.

Consolidated Business Performance Trends (Billions of yen)

914.9

900.6

economic, social, and environmental improvement.
At present, one of the important themes to be tackled

Message from the Chairmanof the Board and CEO

Contributing to the Developmentof the SDGs and the Realizationof a Decarbonized Society
through Our Energy andEnvironment Businesses

875.9

910.2
8.2%

6.6%
5.5%

60.0
40.3

4.7%

42.5
28.8

48.6
41.9

1,000.0

960.0

74.8
58.7

8.5%

82.0
59.0

Net Sales

8.0%

OperatingMargin80.0

Operating
IncomeNet Income
Attributable to
Owners of
Parent55.0

Energy saving
and automation

Food andBeverageDistribution

FY2018Results

FY2019Results

FY2020Results

FY2021Results

FY2022
FY2023 Medium-Term
Management Plan Management Plan
(Target)(Target)Fuji Electric Report 202210

are taking measures to minimize investment and maximize
profits, such as utilizing the clean rooms vacated by our exit

Ongoing reinforcement of operating
foundations with ESG as the core

Take good care of Fuji Electric’s“enthusiastic, ambitious and sensitive” DNA

Fuji Electric has been working to improve its financial position
since it fell into an operating deficit in fiscal 2008 due to thefrom magnetic disks for semiconductor manufacturing. We

To become a sustainable growth company, we are strengthening

I have always felt that an individual’s strength is limited and soare also working to improve the cash conversion cycle (CCC)

initiatives related to the environment, human resources, andeffects of the global financial crisis. We have clarified our

teamwork is important. In particular, we have been focusing

by strengthening collection of accounts receivable-trade andgovernance, which form our operating foundations.

on the companywide Pro-7 activities that mobilize the power

reducing inventories. Going forward, we will continue to invest

generating free cash flow through measures such as focusing

in growth in focus areas, maximize profits, and improve capitalworld’s aim of carbon neutrality, we have established ourin 2012 to improve profitability, employees aim to pursue

resources on power electronics and power semiconductors,

efficiency while taking financial balance into account.

Environmental Vision 2050, which defines the direction of

Prosperity (company prosperity, returns to shareholders,

our environmental activities, and set interim goals for fiscal

and happiness of and their families), identify their own tasks,

profitability, and systematically selling our cross-shareholdings.

to increase dividends since fiscal 2011, and in fiscal 2021,

2030. The three goals are to reduce CO2 emissions in society

review their work practices from scratch, and work as a

As a result, in fiscal 2021, not only our operating margin, but

we declared annual dividends of ¥100 per share (¥45 interim

through our products, to reduce greenhouse gas emissions

team to improve their work efficiency and quality. Today,

also our net debt-equity ratio and equity ratio reached record

dividend and ¥55 year-end dividend), up ¥15 year on year.

during production, and to reduce greenhouse gas emissions

awareness of the company’s profitability and productivity

highs. In terms of capital efficiency, ROA and ROE exceeded

From a medium- to long-term perspective, in anticipation ofthroughout our supply chain by promoting the effective use

improvements has taken root in each employee and has

the Medium-Term Management Plan’s targets of 5% ROA andthe business growth cycle, we will aim for a dividend payoutof resources. To further reduce CO emissions in our core

become an integral part of their daily work. Workstyle reforms

11% ROE in fiscal 2023.

Regarding dividends to shareholders, we have continued

augmenting our manufacturing capabilities to enhance2

ratio of 30% as targeted in the Medium-Term Management

energy and environment businesses, we are strengthening

are also incorporated into these activities, and feedback fromStarting in fiscal 2021, we introduced per-business ROIC

Plan, emphasizing stable and sustainable dividends while

the development of new products. In our production activities,

the operational frontlines is leading to the development of a

as a performance indicator. In the semiconductor business,retaining internal reserves for research and development,

we will pursue production processes with low environmental

better working environment. I believe these companywide

where growth is expected but investments are large, we

capital investment, and human resource development.

impact and make environmental investments such as installing

Pro-7 activities have led to the growth of our employees andsolar power generation systems and introducing renewable

the strengthening of teamwork, thereby laying an operatingenergy at production bases in Japan and overseas.

foundations for Fuji Electric.

We declared our support for the Task Force on Climate-

15.7

14.7

10.8

Net Income Attributableto Owners of Parent(Billions of yen)

7.4

ROA (%)

15.1

41.0

9.3

9.0
ROE (%)

12.1

11.8

28.0

26.4

40.3

41.9

11.8

28.8

37.8

related Financial Disclosures (TCFD) in 2020, and arecommitted to proactive and quality information disclosure. We

sensitive—with our employees. “Enthusiastic” refers to theare utilizing TCFD’s review scheme to translate climate change

passion to develop new technologies, new products, and to

58.7

risks, opportunities, and adaptation measures into action plansserve the world. “Ambitious” means that we must aim high. If

13.2

so that we can minimize the risk impact while enhancing ouryou accept “good enough,” you’ll never do better. No matterlong-term growth and reason for existence.

how hard it may be, we share goals that aim high. Finally,

10.7

In terms of human resources, we are actively investing in

8.0

30.6

19.6
11.8
3.4

1.8

1.5

2010

2011

2012

2.5
2013

3.3

3.5

2014

2015

4.7

2016

4.2

2017

5.4

4.3
3.0
2018

2019

4.1

2021 (FY)“sensitive” refers to kindness. A feeling of kindness for ourhuman resources and creating an environment that enables us

customers, the colleagues we work with, and our families. My

to “maximize our strengths as a team, respecting employees’

hope is that each and every employee will take good care ofdiverse ambition,” as stated in our Management Policies.

this Fuji Electric DNA and pass it on to the next generation.

Based on a foundation of respecting human rights, ensuring
2020

I place great importance on sharing the meaning of ourcorporate slogan—To be enthusiastic, ambitious andChanges in Key Financial Indicators

Fuji Electric will celebrate its 100th anniversary in 2023. To

occupational health and safety, and protecting employee health,continue to be a sustainable growth company into the future,

Net Debt-Equity Ratio(Times)we have been and will continue to focus on the promotion of

we will maximize the strengths of our employees, who have

1.4

1.4

1.1

0.9

0.7

0.8

0.5

0.4

0.4

0.4

0.3

0.2

diversity with a particular emphasis on the advancement ofdiverse personalities, as a team in order to develop our energy

Equity Ratio (%)

19.3

20.6

25.4

28.0

32.1

27.3

32.8

36.1

37.0

36.7

39.6

42.3

women, the success of experienced senior employees, theand environment businesses and contribute to solving social

cultivation of manufacturing talent, and the cultivation of futureand environmental issues and creating value for our customers.

management candidates who will lead Fuji Electric in the future.

We look forward to the continued understanding and support

In terms of diversity, in June 2022 a female outside directorof all stakeholders, including shareholders and other investors.

Changes in Annual Dividend and Dividend Payout Ratio
39.7

70
25.5

24.2
18.9
Dividend Payout Ratio (%)

13.6

20

20

35

23.0

45

23.3

50

55

26.5

85

80
28.4

80

100

29.0
24.3

19.2

with a deep knowledge of business areas relevant to thepower electronics business joined our Board of Directors.
We believe that diversity is more important than ever intoday’s rapidly changing, uncertain, and opaque businessenvironment. To become a sustainable growth company, we

25

will further invigorate our discussions on important medium- tolong-term issues at our Board of Directors meetings.

Annual Dividend (yen)
2010

11

of individuals into teams. Under Pro-7, which was launchedbusiness domain and reduced our interest-bearing debt by

In terms of the environment, in order to achieve the

Message from the Chairmanof the Board and CEO

Continue to invest in growth, maximize
profits, and improve capital efficiency

Fuji Electric Report 2022

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (FY)

Fuji Electric Report 2022

12

Interview with the President and COO

Shiro Kondo
President and COO

task will be meeting demand from electrified vehicles. In

management that optimizes the supply and demand balancefiscal 2021, we invested in the Tsugaru Factory, and in fiscal

will become more important and more complicated than ever2022, we invested in the Malaysian Factory to increase

before. At the same time, there will be a major trend toward

production capacity. We will steadily implement measuresdecarbonization of energy and electrification on the demand

to meet the strong demand of our customers and expand

side. The equipment and systems that enable decarbonizedsales. Furthermore, improved performance of power

power sources, the ability to regulate electricity supply andsemiconductors will be a key factor in the expansion ofdemand, the electrification of heat, energy saving, and so onelectric vehicles (EVs). In addition to IGBTs, which are one ofare typically associated with our Power Electronics and Power

our strengths, we are deploying a production system for SiC

Generation businesses. However, the application of thesepower semiconductors, which contribute to extending theequipment and systems is not limited to factories, but also

cruising range of EVs and other applications, with the aim ofextends to airports, ports, stores, and many other forms ofmass production in fiscal 2024.

social infrastructure. I believe we must build a system over the

In terms of profitability, we set an operating margin targetof 8.5% for fiscal 2022, but we are committed to achieving

Interview with the
President and COO

We Must Become More Resilientto Change and Take on the
Challenge of Creating New
Social Value through Energy andEnvironmental Technologies

next two years that will allow Fuji Electric to provide a one-stop
shop for our customers and partners.

8% “or higher” and aim for further improvement. Given the

Furthermore, in response to the shift in values among

difficulties in procuring parts and soaring logistics costs

our customers and society, I think we will need some kind

we experienced last year, it is more necessary than ever toof environmental contribution indicator in addition to thetake a bird’s eye view of the entire supply chain and taketraditional management indicators.

appropriate measures. Over the past 10 years, we have beenworking to augment our manufacturing and procurement
capabilities under the basic policy of local production for local
consumption. Going forward, we will work to further improve
productivity through the use of digital technology.

Q	What do you think you will need to focus on
in order to achieve your two missions?
With so many unexpected events occurring throughout theworld, and a shift toward new values, I feel that we must

Q	
What is Fuji Electric’s direction forQ	
What are your aspirations upon assuming
the position of President and COO?

FY2023 Medium-Term Management Plan?

steps are important when it comes to adapting to change.
The first is for each employee to increase their information

We will continue to focus on our energy and environment

sensitivity to perceive signs of change. The second is tobusinesses in fiscal 2024 and beyond. One of our strengths

openly and frankly discuss how to respond to the change.

As the person responsible for execution, I believe I have two

I think it comes down to the ability to execute. Although fiscal

is our comprehensive capabilities. I hope that by leveraging

I believe that people tend to have a status quo bias when

missions. The first is to achieve our Medium-Term Management

2022 will be the last year to prepare for the achievement of

the foundation of our businesses, technologies, and broad

faced with new changes, and I think it is important to remove

Plan (net sales of ¥1 trillion and an operating margin of 8% or

the Medium-Term Management Plan, we have already outlined

customer base, we can further improve the field-based,

this as much as possible from the discussion. And third,

higher), which ends at the close of fiscal 2023. The second is toa major strategy for fiscal 2023. Over these two years, ourreal-world technologies we have cultivated over the years.

once the direction is set, the team must work together todraw up a new growth strategy for 2030 and show the path toemployees will work as a team to respond to changes in the

Meanwhile, I would like to combine these existing technologies

achieve the goal. I believe that if each of us makes an effort

becoming a sustainable growth company.

business environment while working through the strategies wewith digital technologies such as AI and IoT technologies toto perceive change and face it as a team in this way, we will

have drawn up. Our success depends on this.

create even more value for our customers. At the same time,naturally become more resilient. Our stated management

it is important to improve the quality of service. I want topolicy is “maximize our strengths as a team, respecting

Since joining the company, I have been involved in thedevelopment of various products as an engineer in fields such

13

Q	
What are the challenges in achieving the

fiscal 2024 and beyond?

become more resilient to change. I think the following three

Let me address sales growth specifically. In fiscal 2021, we

as information, communications and networking. In recent

had net sales of only ¥910.2 billion, against orders received

continue to nurture our relationship of trust with our customers

employees’ diverse ambition.” I believe that this has spreadyears, as the head of technology development, I have beenof over ¥1 trillion. Above all, I believe that expanding sales inso that we achieve sustainability together.

to all employees, and the foundation for this has been

striving to achieve the timely alignment of the vertical productPower Electronics is our most important task. We reviewed

For the next Medium-Term Management Plan, we will

established, but the pandemic has changed the state of ourdevelopment in the business divisions with the horizontal

the sales structure of Power Electronics in September of lastconsider both forecasting from the perspective of the current

communication. Personally, I want to take every opportunity,

development of fundamental and advanced technologies

year, and started to develop new customers and introduce

situation and backcasting from the perspective of where

including tours of factories and area operations and next-company-wide. As the world moves toward a sustainable

new products. Orders are steadily accumulating, and we are

Fuji Electric wants to be in 2030. In the midst of major

generation management training, to create and communicate

society, including decarbonization and environmental

aiming to increase sales. In addition, in our overseas business,market changes, we will have a thorough discussion on Fuji

opportunities for dialogue and to stimulate dialogue at every

conservation, I feel that environmental and socially conscious

we plan to expand sales to Southeast Asia, India, and China,

Electric’s position in decarbonization and determine ourlevel, from individuals to teams. My hope is that, by becoming

products, systems, and solutions are needed more than ever.

with a focus on global products developed to meet local

strengths and direction.

more resilient to change through a climate that respects

Focusing on power electronics and power semiconductor

specifications.

We have various products and systems on both thediverse personalities and teamwork, we will achieve ourtechnologies, I hope to contribute to solving social issues by

In semiconductors, another key business, we expect tosupply side and the demand side of energy, but the future

Medium-Term Management Plan and further growth in fiscal

using our comprehensive vertical and horizontal strengths toachieve the sales target in the Medium-Term Managementof energy distribution will be a system where the supply

2024 and beyond.

combine all of our businesses and technologies in new ways.

Plan one year ahead of schedule. However, an importantside and the demand side are mixed. Therefore, energy

Fuji Electric Report 2022

Fuji Electric Report 2022

14

FieldPromoting Material Initiatives for Management

Material Issues for Management and Major Initiatives
Material Issues

Major Initiatives
Expand power electronics andsemiconductor businesses

By assessing the link between the value created by our energy

SDGs to Be Addressed throughFuji Electric’s Companywide Activities

and environment businesses (clean energy, stable energy
supply, energy saving, and automation) and contributions
to the accomplishment of the SDGs, Fuji Electric selected

Businesses

SDGs to Be Addressed through Companywide Activities

five priority goals. Furthermore, four additional goals were

Realize adecarbonizedsocietydesignated as priorities in relation to the reinforcement of ouroperating foundation to be pursued through overall corporate• Net sales: ¥910.2 billion(power electronics: ¥555.1 billion,
semiconductors: ¥178.8 billion)• Operating income: ¥74.8 billion(power electronics: ¥45 billion,
semiconductors: ¥27.1 billion)• Operating margin: 8.2%

Reduce greenhouse gas emissions
throughout the supply chain

Fiscal 2030 targets
Greenhouse gas emissions throughout the
supply chain: reduce by more than 46%(compared to fiscal 2019)

Greenhouse gas emissions throughout the supply
chain: increased by 44% (compared to fiscal 2019)

Reduce greenhouse gas emissions
during production

Greenhouse gas emissions during
production: reduced by more than 46%(compared to fiscal 2019)

Greenhouse gas emissions during production:
reduced by 22% (compared to fiscal 2019)

Reduce society’s CO2 emissions byproviding energy-saving products

Reduction of society’s CO2 emissions byproducts: more than 59 million tons / year

Reduction of society’s CO2 emissions by products:
45.44 million tons / year

Promote the 3Rs (Reduce, Reuse,
Recycle) throughout the supply
chain• Ratio of waste sent to landfills:
1.2% in fiscal 2022
• Water consumption per unit of sales:
1,800 tons / ¥100 million in fiscal 2022

• Ratio of waste sent to landfills: 2.3%
• Water consumption per unit of sales:
1,100 tons / ¥100 million

E

activities, making for a total of nine goals.

Realize arecyclingoriented society

Respect forhuman rights• Implement human rights
awareness raising activities• Implement human rights due
diligence—

Today, advancing the SDGs and realizing a decarbonized society have become increasingly significant common global issues. To
continue growing sustainably, Fuji Electric has defined high-priority material issues for management (materialities) that the Company

Promote active participation of
female employees

must address through our business activities.

Promotion system

We have identified our material issues for management based

Material issues for management are deliberated at committees

on the ongoing reinforcement of our operating foundation,

consisting of executive officers responsible for the business,a material issue in our FY2023 Medium-Term Management

sales, and corporate divisions alongside divisions affected byPlan. In addition to promoting our energy and environment

the issues, and as necessary, reported and deliberated at thebusinesses as stated in our management policies, we have

Executive Committee and the Board of Directors.

Promote active participation ofsenior employeesS

Our approach to material initiatives for management

Activeparticipation ofdiverse humanresources

Broaden scope of duties performedby differently abled employees• Percentage of women hired:
20% in fiscal 2023
• Number of female employees insupervisory positions: 400 in fiscal 2023—

Percentage of differently abled individuals
hired: At least the statutory employment rateof Conduct, which serves as a guide for the Company’s

Major Committees Related to Material Issues for Management
Field

Production Technology Committee
Technology Development Committee
International Standardization Committee

Environment (E)Realize a decarbonized society
Realize a recycling-oriented society

SDGs Promotion Committee

Respect for human rights
Active participation of diverse human resources

SDGs Promotion Committee
Health & Safety Promotion Committee
Skills Development Committee

Compliance Promotion Committee

Society and Governance(S & G)

Create a supply chain that supports a sustainable society

SDGs Promotion Committee

Promotecompliance

Enhance risk
management

S&G

Governance (G)Improve effectiveness of corporate governance
Promote compliance
Enhance risk management

Fuji Electric Report 2022

G

Promote energy and environment businesses

Create a
supply chainthat supportsa sustainable
society

Environment
P33–36• Enhance human rights awareness training• Continued implementing harassment prevention
education• Implemented improvement guidance for consolidated
overseas subsidiaries related to respect forhuman rights• Percentage of women hired: 21%• Number of female employees in supervisory
positions: 328* As of June 2022

Percentage of persons who used the Selective
Retirement Age System: 82.5%(Number of persons who selected the system:
254 out of 308 eligible persons)

Human resources
P37–38Percentage of differently abled individuals hired: 2.95%(Reference value: statutory employment rate = 2.3%)—• Continued third-party evaluation of the effectivenessof the Board of Directors and incorporated thisevaluation into operations• Reduced cross-shareholding- Number of types of listed shares held: 45 at theend of fiscal 2021 (a decrease of 29 compared tothe end of the previous fiscal year)

Corporate
governanceP39–48—• Implemented compliance education- Level-specific training: 413 trainees- Job-specific training: 2,893 trainees• Thoroughly implemented the Business Ethics
Whistle-Blowing Systems- Number of reports: 31

ComplianceP49–50

Improve product quality—

Strengthened the promotion of high-reliability activities

Strengthen our response to natural
disasters and accidents—

Established a system that enables us to understandthe situation when disasters occur by introducing adisaster prevention information system for customers

Strengthen information security—

Strengthened countermeasures against cyber attacks—• Continued to implement self-assessments of
CSR procurement and expanded their targets- Implemented for: 748 companies• Expanded the number of materials procured bypurchasing them from multiple suppliers- Percentage of materials procured by purchasing
them from multiple suppliers: approximately 60%

Improve transparency andsupervisory functions ofmanagement

Relevant Major Committees

Business

Society (S)15Material Issues

Semiconductors
P25–26—act in order to put our corporate philosophy and management
Improveeffectivenessof corporate
governancePower electronics
P21–24• Continued implementing companywide Pro-7 activities• Strengthened our support for work-life balance
between work and raising children- Number of persons who took childcare leave: 124(men: 21, women: 103)
• Further promoted flexible workstyle reforms

foundation and how we, along with all our employees, should
policies into practice and fulfill our social responsibility.

Reference
Page(s)* As of June 2022

Advance workstyle reforms,
promote work-life balance

organized our major initiatives based on the Fuji Electric Code

Relevant SDGs

Promoting Material Initiatives
for Management

Material Initiatives for Management to Achieve Sustainable GrowthFiscal 2021 Results

FY2023 Medium-Term Management Plan
• Net sales: ¥1 trillion(power electronics: ¥600 billion,
semiconductors: ¥200 billion)• Operating income: ¥80 billion(power electronics: ¥48 billion,
semiconductors: ¥22 billion)• Operating margin: 8% or more

Promoteenergy andenvironment
businesses

Priority SDGs to Be Addressed throughEnergy and Environment Businesses

Targets

Ensure effective implementationof the Fuji Electric Compliance
Program• Practice fair and equitableprocurement• Practice sustainable procurement
together with business partners

Risk management
P51–54

Sustainableprocurement
P55–56

Details about ESG material issues are available on our website:
https://www.fujielectric.com/company/csr/material-issues.html

Fuji Electric Report 2022

16

FY2023 Medium-Term Management Plan
“Reiwa Prosperity 2023”
Following the global financial crisis in 2008, Fuji Electric began restructuring its business in order to generate income even
without increasing sales, primarily by strengthening its global manufacturing capabilities based on a local production for
local consumption approach. To further expand its business and further improve its profitability, since then the Company has
also been focusing on our power electronics and power semiconductors businesses by concentrating its resources there.
Under our FY2023 Medium-Term Management Plan, we aim to establish a foundation for sustainable growth with net salesof ¥1 trillion and an operating margin of 8% or more, and pursing three key initiatives: “promote growth strategies,” “further
improve profitability,” and “ongoing reinforcement of operating foundation.”
Further information about progress of management reforms is available at our website.
https://www.fujielectric.com/ir/library/reports/progress.html
Fiscal 2023 Management Targets

Establish Foundations for Sustainable Growth

Net Sales•	Concentrate resources on our
power electronics and power
semiconductor businesses•	Expand overseas business-	Increase sales centered on Southeast
Asia, India, and China-	Target ratio of sales outside Japan:
35%•	Augment global manufacturing
capabilities-	Promote local production for local
consumption-	Step up the development of local
leaders overseas-	Deploy IoT technologies to advancedigital reforms of our manufacturing

United States and China, and we suffered a year-on-year

mainly due to increased demand for ED&C components,

decrease in sales and income, mainly due to decreased

power electronics FA, industrial power semiconductors,

demand for ED&C components, power electronics FA,*

vending machines, and store facilities resulting from expanded

industrial power semiconductors, vending machines, andour comprehensive electrical equipment business, ongoingother major components.

increases in the demand for power semiconductors for¥1 trillion

Operating Income¥80 billion

Operating Margin

8% or more

Net Income
Attributable to
Owners of Parent¥55 billion

investment in the manufacturing sector, and other factors—

and a decrease in large-scale power generation orders due

and we achieved record-high results for our operating income,to the effects of the COVID-19 pandemic, but our operating

operating margin, and net income.

income increased due to factors that included increased* Power electronics FA: Inverters, FA components, and other businesses

demand for power semiconductors, and cost reduction

Enhancing Our Ability to Respond to Changes in the External Environment to Improve Profitability

Net Debt-Equity
Ratio•	Ongoing reinforcement of our operating foundations with a focus on theenvironment, human resources, and governance• Evolution of companywide Pro-7 activities

Financial Policy•	Emphasize a balance between growth potential, profitability, efficiency,
and financial soundness•	Further improve capital efficiency•	For shareholder returns, target a dividend payout ratio of around 30%
based on the principle of stable and continuous dividends

0.1 times

Equity Ratio

50%

ROA
(Return on Assets)

5%

ROE(Return on Equity)

11%

Dividend Payout
Ratio

30%

*N
 et debt-equity ratio = net interest-bearing
debt ÷ equity*A ssumed exchange rates for fiscal 2023:¥105 to the U.S. dollar, ¥123 to the Euro,¥16 to the RMB

Changes inthe external
environment

Impacton theCompany

Fiscal 2019

Fiscal 2020

Trade friction
between the UnitedStates and China

COVID-19 pandemic

Decreased
demand for major
components(ED&C components,
power electronics FA,
semiconductors, andvending machines)

Progress of the FY2023 Medium-Term Management Plan
operating margin, we achieved our Medium-Term Management Plan target two years ahead of schedule.

Management
measures

Consolidated Business Performance Trends (Billions of yen)
Net Sales
Operating Income
Net Income
Attributable to
Owners of Parent
Operating Margin

Financial Indicators
Net Debt-Equity Ratio
Equity Ratio

960.0

910.2

875.9

40.3
6.6%

48.6

42.5
28.8

(due to a significant
decrease in demand forvending machines)

Postponementof overseas
projects of power
generation

Changes in magnetic
disks customer policies

Difficulty procuring
materials, soaring
material prices anddistribution costs

Decreased demand formagnetic disks

Delivery delays andincreased production
costs

FY2020Results

FY2021Results

FY2022
Management Plan
(Target)0.4 times

0.3 times

0.2 times

0.2 times

37%

40%

42%

44%

FY2018Results

FY2019Results

0.4 times
37%

Promotecompanywide
cost reduction

Withdraw from themagnetic disks business

Strengthen our ability tohandle procurement risk(by reducing the fixed costs,
integrating production
bases, and increasing the
product selling price)=> U se factory clean rooms
for our 8-inch Si* power
semiconductor lines(by promoting material
multi-sourcing, long-term
contracts, productdesign revisions, and the
procurement of alternative
materials)

Increased our power
semiconductor
production capacity

Minimized the negative
impact on our results

41.9
8.5%

5.5%

Strengthen the profit
structure for our vending
machines business

59.0

58.7
8.2%

4.7%

Strengthen the profit
structure for our
ED&C components
business(by revising the sales
and manufacturingsystems and reducing
fixed costs)

82.0

74.8
60.0

Food and beverage
distribution in the red

Fiscal 2021

Restructure

In fiscal 2021, we achieved record-high results for our operating income, operating margin, and net income. Regarding the

900.6

electrified vehicles, the recovery of plant and equipment

due to significantly decreased demand for vending machines

Financial Indicators

Ongoing reinforcement of operating foundations

914.9

In fiscal 2021, we saw an increase in sales and income—

especially in China, due to trade friction between the

Promoting Material Initiatives
for Management

Further improve profitability

activities promoted on a companywide basis.

In fiscal 2019, we faced market contraction overseas,

In fiscal 2020, our net sales decreased year on year, mainly

FY2023 Medium-Term Management Plan: Key Issues

Promote growth strategies

Overview of Results for Fiscal 2019 to 2021

ROA (Return on Assets)

4%

3%

4%

5%

5%

ROE (Return on Equity)

12%

8%

11%

13%

12%

Dividend Payout Ratio

28%

40%

29%

24%

—

Results

Achieved recordhigh profit for our
ED&C components
business in fiscal
2021

Achieved profitability for
our food and beverage
distribution business infiscal 2021

Reduced fixed
costs throughout
the company(by starting up mass
production in fiscal 2023)

Achieved an operating margin of 8.2% in fiscal 2021
* Si: silicon

17

Fuji Electric Report 2022

Fuji Electric Report 2022

18

Fiscal 2022 Management Plan

Plant and Equipment Investment and R&D Expenditures

In fiscal 2022—as our final preparations to achieve net salesof ¥1 trillion and an operating margin of 8% or more, both ofwhich are targets of our FY2023 Medium-Term Management
Plan—we will aim to achieve record-high results for ouroperating income, operating margin, and net income for thesecond year in a row.
We will aim to increase our net sales to ¥960 billion, a
year-on-year increase of ¥49.8 billion, mainly by taking
advantage of increased sales in Power Electronics
Industry—a result of increased demand for automation andIT solutions due to increased energy saving, automation, anddigital transformation (DX) needs—and increased sales in
Semiconductors, stemming from an increase in demand forSales outside Japan (Billions of yen)

960.0

+49.8

54.0
92.0
82.0

-0.7
+1.2
+3.4

178.8

200.0

+21.2

324.1

349.0

231.0

236.0

54.7
90.8
78.6

-47.8

-53.0

FY2021Results

FY2022
Management Plan
(Target)

28%

27%

82.0

Change
+7.2

2.6
5.1
4.1

-0.2
+2.1
+1.0

30.5

+3.4

23.8

26.8

+3.0

21.2

22.1

+0.9

-6.3

-9.2

-2.9

FY2021Results

FY2022
Management Plan
(Target)

74.8

254.4

258.9

Change
+4.5

17.0
20.0

16.8
27.9

-0.3
+7.9

+24.9

100.5

86.6

-13.9

+5.0

116.8

127.6

+10.8

-5.2

Power Electronics Energy
Power Electronics Industry
Semiconductors
Power Generation
Food and Beverage Distribution
OthersElimination and Corporation

FY2021Results

FY2022
Management Plan
(Target)Asia (except for China)
China
Ratio of Sales outside Japan

Europesemiconductors businesses. In addition, to respond to the strong demand for power semiconductors, we have increased our initialplan for plant and equipment investment during the five years leading up to fiscal 2023 from a total of ¥120 billion to ¥190 billion.

Americas

2.8
3.0
3.1
27.1

Power Electronics Energy
Power Electronics Industry
Semiconductors
Power Generation
Food and Beverage Distribution
OthersElimination* Figures for FY2021 reflect the organizational restructuring conducted in FY2022.

3.4
4.9
3.1

143.4

19

Fuji Electric Report 2022

FY2019-2021

2.0
15.0
5.0

190.0

120.0

Power Electronics

Thailand: Construction of switchgear and controlgear
system factory and engineering center
India: Expansion of factory and production models
Chiba Factory: Construction of engineering centerTokyo Factory: Construction of the Plant Systems Center

Semiconductors

Front-end process (8-inch Si) production capacity
expansion (Yamanashi, Matsumoto, Tsugaru Factories)(after revision)

93.2
78.0

38.9
FY2019-2021
3-Year Cumulative Results

FY2019-2023
5-Year Cumulative (Target)

Power Electronics
Semiconductors
Power Generation
Food and Beverage Distribution
OthersTsugaru Factory(Fuji Electric Tsugaru Semiconductor Co., Ltd.)

Fuji Electric Manufacturing (Thailand) Co., Ltd.

FY2019-2021

200.0

adjusting our production in response to recent fluctuations indemand. We will also steadily increase our production capacity
to deal with the rapid increase in demand for electrified vehicles.
In addition, to respond to the increasing need for improved
power conversion efficiency, we will promote the developmentof silicon carbide (SiC) and other new products as well as theestablishment of a mass-production system.
Further improve profitability
We will strive to minimize the impact of supply chain disorderdue to external environment changes on our results, such as byconcluding long-term contracts in response to soaring material
prices, revising our product prices in accordance with increases
in basic costs, securing alternative materials and the ability topurchase from multiple suppliers in the case of materials forwhich the supply is tight, and promoting design changes.
In addition, we will promote DX through manufacturing
innovations based on the expanded application of digitaland AI technologies as well as the development of humanresources in order to thoroughly enhance quality at every step
through our design, manufacturing, and testing processes.

15.0
15.0
11.0

101.8
10.9
7.4
4.2

36.8

74.0

Power Electronics

Global product development(transformers, switchgears, large-capacity UPSs,
products for plants)
Products for the mobility field(electrical equipment for railcars, ship systems)

Semiconductors

Development of 8th-generation IGBT technologies
IGBTs for electrified vehicles
SiC technology development

85.0

39.9
FY2019-2021
3-Year Cumulative Results

Tokyo Factory Plant Systems Center

Major R&D Expenditures Details

R&D Expenditures (Billions of yen)

Fiscal 2022 Priority Measures
Promote growth strategies
For our power electronics business, we are striving to
expand our comprehensive electrical equipment businessthat supports stable equipment operation both in Japan andoverseas, and we have established a special department
to respond to the various carbon neutrality needs of ourcustomers as we expand our business. To expand ourafter-sales business, we are expanding our services forsupporting the efficiency of overall equipment maintenancebusiness as well as our equipment deterioration diagnosis
service to prevent accidents and other problems involving
aged equipment. In terms of our overseas business, we are
striving to expand our global products, including inverters andsubstation equipment, while also promoting the strengtheningof our manufacturing systems to achieve local production for
local consumption, the expansion of our production models,
and the strengthening of cooperation between our regionalsales and manufacturing bases. In this way, we are working on
increasing sales for data centers and in the renewable energy
and material plant fields where growth is expected.
For our semiconductors business, we will maintain a high rateof operation—and thus maximize our profitability—by flexibly

Major Plant and Equipment Investment Details

Plant and Equipment Investment (Billions of yen)
220.0

Operating Income by Segment (Billions of yen)

Change910.2

We are making continuous plant and equipment investment and R&D investment, mainly for our power electronics andPromoting Material Initiatives
for Management

Net Sales by Segment (Billions of yen)power semiconductors for electrified vehicles.
Our overseas sales to China—especially of Power Electronics
and Semiconductors—are expected to decline, mainly due tothe impact of the lockdown. However, we will increase our sales
to Asia and Europe of Power Electronics, Semiconductors,
and Power Generation in particular by taking advantage of an
expected increase in renewable energy demand as well as
increasing energy saving and electrified vehicle needs.
We are aiming to increase our operating income to ¥82
billion, a ¥7.2 billion year-on-year increase, thanks to increased
sales and production volumes of Power Electronics Industry
and Semiconductors as well as improved profitability of Power
Generation and Food and Beverage Distribution.

FY2019-2023
5-Year Cumulative (Target)

Power Electronics
Semiconductors
Power Generation
Food and Beverage Distribution
Others* Figures for R&D expenditures are classified by segment according to theme andtherefore differ from figures stated in the consolidated financial report.

Large-capacity UPSs

IGBT modules for electrified vehicles

SiC wafers

Fuji Electric Report 2022

20

Overview of Segments
Power Electronics Energy

Priority Measures
Electric Manufacturing (Thailand) Co., Ltd.’s engineering centercal equipment business, particularly in Southeast Asia.

Expanding orders in the substation business anddeveloping the carbon neutrality market
In the substation business, we plan to expand our businesscooperation with sales divisions in Japan.

We will strengthen businesses that contribute tothrough early development and market launch of differentiatedWe will work to expand sales in our comprehensive electri-carbon neutrality.

Masashi Kawano
Managing Executive Officer
Corporate General Manager, Power Electronics Energy Business GroupNet sales in FY2021

products. To expand orders, we are developing new products
such as natural ester filled global transformers for substations,of information systems to the cloud and the progress of

where safety and environmental regulations are important, ande-commerce systems, there are calls for uninterruptible

gas insulated switchgear (GIS) that minimizes the generation

power systems (UPSs) to have higher capacity and beof greenhouse gases, and combining these new products withmade more compact and energy-efficient to expand server

other power electronics equipment.

installation space and reduce power consumption. The

25%

Power companies, Material plants (steel, chemical, etc.),
Data centers, Semiconductor factories, Machine manufacturers

to promote the development of the carbon neutrality market,

combines one of the industry’s smallest footprints and highest

Strengths• Package proposals from a wide range of products and systems
to maintenance services, contributing to stable power supply
and power optimization

which is expected to expand over the medium to long term.

power efficiency rating, making it the optimal product for the

Based on the know-how gained through our own carbon

needs of our customers. We aim to expand sales throughneutrality initiatives, such as the introduction of renewable

our comprehensive electrical equipment business, whichenergy power generation equipment and cogeneration

ED&C components

34%

Power distribution andcontrol equipment

combines highly competitive large-capacity UPSs as the core(combined heat and power generation) in our own factories,

with substation equipment, installation work, and maintenancewe will develop new markets with solutions such as energy

services.

Power supply andfacility systems• Extensive delivery record and engineering experience in stable
power supply and power optimization

Uninterruptible power systems (UPS),
Switchgear and controlgear• Energy-saving expertise developed at Fuji Electric’s factories inJapan and overseas

management systems and power stabilization systems that

* Ratios for net sales are calculated based on amounts before elimination and adjustment of inter-segment transactions.

Market Trends and Business Opportunities
In the energy management business, we can expect an increase

and semiconductor factories for our comprehensive electricalin equipment renewal demand due to replacement of aging

equipment business.

help customers adopt and procure renewable energy.

Promoting strength of our ED&C components
business

Expanding sales in Southeast Asia bystrengthening our comprehensive electricalequipment businessIn the ED&C components business, we aim to maintain andimprove our highly profitable structure by strengthening our
response to parts procurement difficulties and material price

Our comprehensive electrical equipment business, for which

hikes, and by continuing to engage in cost reduction activities.

In the ED&C components business, demand from machine

demand is growing at data centers and semiconductor

In terms of our sales structure, by integrating our sales bases

related to renewable energy aimed at carbon neutrality.

manufacturers is expected to continue to increase, driven byfactories, has received high praise in terms of shortening

with our subsidiary Fuji Electric FA Components & Systems

In the power supply and facility systems business,investment in electric vehicles and rising demand for 5G. In

the customer’s construction period and reducing equipment

Co., Ltd., we will work to develop new customers and expand

investments by IDC operators, driven by digitalization and the

addition, we will continue to monitor and adjust to changes inmanagement personnel, and based on our track record insales volume by utilizing mutual sales channels. Furthermore,

use of 5G, as well as semiconductor-related investments, aredemand and the situation related to procurement of parts andJapan, inquiries are increasing overseas, mainly in Southeast

we will work to strengthen the competitiveness of our products

expanding, and demand continues to increase at data centersmaterials due to the impact of the lockdowns in China.

Asia. To meet this demand, we will expand our business in

by investing in the development of key models to focus on,

Southeast Asia by increasing the number of personnel at Fuji

such as switch controls and power distribution equipment.

substation equipment and an increase in capital investment

Fiscal 2021 Results and Fiscal 2022 Plan

Energy management

Power supply and facility systems

Consolidation adjustments

ED&C components

6.7%
71.3

14.0

73.2
-9.0

Net
Sales

Operating
IncomeFY2020Results

9.2%

96.1

21.2
83.2

90.3

61.3

60.0

-10.5

-10.3

Net
Sales

Large-Capacity UPS for Large Data Centers

Supplied to7500WX Series

benefits of business structural reforms including fixed cost

236.0

reductions to date.

209.2
97.0

to increased demand for ED&C components from machine
manufacturers in both in Japan and overseas, as well as the

Operating margin

231.0

73.8

Comprehensive Electrical Equipment BusinessIn fiscal 2021, the operating margin rose to 9.2% thanks

Business Performance Trends (Billions of yen)

Operating
IncomeFY2021Results

Net
Sales

Data centers

Semiconductor factories

in China and a decrease in large-scale energy management

22.1

projects, we forecast net sales of ¥236.0 billion, up ¥5.0
billion year on year, and operating income of ¥22.1 billion, up

Package proposals from system design to installation and maintenance services
Key products

Main products and services¥0.9 billion, with an operating margin of 9.4%, mainly driven

1. Industry’s smallest footprint
2. Industry’s highest power efficiency rating
3. Compliant with global standard power supply
specifications

by increased sales of power supply and facility systems dueto the continued expansion of the comprehensive electrical
Operating
Incomeequipment business.

Substation equipment

Transformers

Large-Capacity UPS

Air conditioning equipment

FY2022
Management Plan

In-house power
generation equipment

Fuji Electric Report 2022

Product
featuresIn fiscal 2022, despite the anticipated impact of lockdowns
9.4%* Results for FY2021 reflect the business restructuring in FY2022.

21

Promoting Material Initiatives
for Management

41%

Substation equipment,
Energy management systems

7500WX Series large-capacity UPS we launched last year

Supplied toEnergy management

231.0 billion yen

In the data center market, as construction of large-scaledata centers increases globally driven by the transition

In addition, we have established a specialized organization

Business Areasand production and sales bases, as well as by strengthening

Gas insulated switchgear(GIS)

Monitoring systems

Equipment construction
and services

Product
lineupCapacity specifications:• 1200 kVA (released April 2021)• 2400 kVA (scheduled to be released in 2022)
Larger-capacity models will be introduced to the market

Fuji Electric Report 2022

22

Power Electronics Industry

Priority Measures

We will work to expand our overseas businesses bybuilding a system of local design, local production, andlocal consumption, and by launching new global products.

Hiroshi Tetsutani
Managing Executive Officer
Corporate General Manager, Power Electronics Industry Business Group

Business Areas

Supplied toAutomation systems

Net sales in FY2021

324.1 billion yen

17%
20%

ICT-related equipment
and software

51%

Social solutions

12%

Equipment construction

Strengths

Drive systems and door systems for railcars,
Systems for ships and ports,
Radiation equipment and systems

Electrical equipment construction,
Air conditioning equipment construction* Ratios for net sales are calculated based on amounts before elimination and adjustment of inter-segment transactions.

• Early development of power electronics equippedwith power semiconductors• Extensive product lineup tailored to customer
applications• Engineering capabilities built up over a substantial
delivery track record

In China, where we continue to develop new customers

To strengthen cost competitiveness and build a systemsuch as machine manufacturers and material plants as thethat can steadily generate earnings, we are strengthening

main focus area, mainly with components, there is increasing

our system of “local design, local production, and local

demand for induction furnaces, which are more environmentallyconsumption” for components at the global level. We arefriendly. We will work to expand sales by promoting our high-working to strengthen profitability by expanding production

efficiency global induction furnaces, which use our powermodels in India and Europe in fiscal 2022, launching

electronics, analysis, and control technologies and backed byknockdown production of low-voltage inverters in the Americas

our track record as the No.1 market leader in Japan.

in fiscal 2023, and establishing a global six-pole production

For Southeast Asia and India, we have been developing asystem (Japan, China, Southeast Asia, India, Europe, and theglobal control system as an easy-to-use engineering support

Americas).

tool for steel, chemical, and other material plants, and plan tobring it to market in fiscal 2022.

Furthermore, we are promoting the creation of the platforms
for the main components of our products to standardize them,applied. Through that efforts, we can significantly reduce theExpanding business in the railway andship sectors through differentiated products

number of parts, reduce procurement and production costs,

In the railway business, electric door systems are highly

and reduce material inventories, contributing to improved

regarded in the public transportation field for their easeprofitability. In addition, the use of common parts facilitatesof maintenance, safety, and reliability. We will expand ourreplacement with alternative parts, which helps to mitigate

business globally with highly reliable electric door systems bydifficulties in the procurement of parts and materials.

using their platform.

Offer new products in the Chinese,
Southeast Asian, and Indian markets to expand
overseas businesseson the development of carbon neutral ports, led by Japan’s

Whereas in the past we have been working to establish

comprehensive proposal capabilities, and product lineup, wethereby expanding the range of products to which they can be

Promoting Material Initiatives
for Management

IT solutions

Inverters, Motors, Small capacity power supplies,
Measuring instruments, Sensors,
FA components, FA systems, Drive control,
Measuring and control systems, Induction
furnaces

Air conditioning and water treatment facilities,
Machine manufacturers, Power companies,
Material plants (steel, chemical, etc.),
Railway companies, Shipbuilding companies,
Public agencies and local government

Creating the platform for component products

In the ship and port business, specific studies have begun

Market Trends and Business Opportunities
Globally, further capital investment in decarbonization-related

chemical sectors, as well as strategic investments related toenvironmental measures, automation, DX, and related areas ishigh performance, electrification, and carbon neutrality.
In the social solutions business, investments associated withexpected in the future.

Ministry of Land, Infrastructure, Transport and Tourism, with thegoal of decarbonization of ports. Leveraging our track record,

production and engineering systems outside Japan andwill expand our business by offering electrification of ships andIn the automation systems business, although demandequipment replacement demand continued in the rail sector,

strengthen our partnerships, we now intend to expand oursystems that supply power to ships from the land.

for components remains uncertain due to the impact of thewhile in the ship sector, the market for environmentally friendly

business by providing competitive global products overseas.

COVID-19 lockdowns in China and the impact of the global

products is beginning to grow as countries move towarddifficulty in procuring materials, including semiconductors,

electrification and decarbonization of ports.

market conditions in Southeast Asia and India are predicted

In the IT solutions business, rising demand is expected due

to continue their moderate recovery from the COVID-19

to digitalization and teleworking in government, municipalities,

pandemic. In plant systems, we anticipate equipment

and offices, and in the future, we also anticipate new demand

replacement demand to improve productivity in the steel andin the industrial DX market.

Products for Focus Regions outside Japan
Key
Target Markets

Components

Plant Systems

Fiscal 2021 Results and Fiscal 2022 Plan

Automation systems

Social solutions

Consolidation adjustments

345.9

63.9
45.4

61.1

7.3%

70.0
71.0

70.7

23.8

7.7%

In fiscal 2022, despite the anticipated impact of lockdowns
26.8

41.2

in China and material procurement difficulties, we expect
capital investment to remain strong among manufacturers
steel, chemicals, and other materials. Furthermore, due mainly

184.9

179.7

to increased demand in automation systems and IT solutions

Net
Sales

-18.1

-28.4

Operating
IncomeFY2020Results

Net
Sales

Operating
IncomeFY2021Results

Net
Sales

Operating
IncomeFY2022
Management Planbillion, up ¥24.9 billion year on year, and operating income of¥26.8 billion, up ¥3.0 billion, with an operating margin of 7.7%.

India

driven by growing DX needs, we forecast net sales of ¥349.0-22.2

Low-Voltage Inverters

Servo systems

Human machineinterfaces

Rotating machines
Measuring
instruments

High-Voltage Inverters

Chemicals
CementWaste incineration
Food and beverage
Iron & steel
Ports
Solar powerSet manufacturers

Low-Voltage Inverters

Low-Voltage Inverters

Servo systems

Measuring instruments* Under expansion of production models

Fuji Electric Report 2022

Measuring instruments

Servo systems* Results for FY2021 reflect the business restructuring in FY2022.

23

Global induction furnaces

margin rose to 7.3%.

of machine tools, semiconductor manufacturing equipment,

152.2

Electric power
Iron & steel
Ports
Set manufacturers

low-voltage inverters and FA components, and the operating

349.0

6.3%
41.1

impact of the preceding fiscal year’s large-scale IT solutions
projects, demand for automation systems grew, mainly for

324.1

21.8

IT solutions

Operating margin

Southeast Asia

106.6

Equipment construction

China

In fiscal 2021, despite a decrease in net sales due to theBusiness Performance Trends (Billions of yen)

Global control systems
Compact power supplies(Mini-UPS)

Inverter panels* Market rollout planned for FY2022

Fuji Electric Report 2022

24

Semiconductors

Priority Measures

In response to growing demand for power semiconductors
for electrified vehicles, we will steadily increase production
capacity and expand sales.

Growing sales of power semiconductors for xEVs
Power semiconductors contribute to reducing power loss

Expanding sales of 7th-generation IGBT modules
for industrial applications

and improving driving distance, which are major issues for

We are expanding our product lineup of 7th-generation

xEVs, and as demand grows rapidly, there is a need for ever

IGBT modules—which feature high heat dissipation and highhigher efficiency.

reliability—and increasing sales of products for the renewable

Fuji Electric’s power semiconductor modules incorporate Si
RC-IGBT*, which we developed independently ahead of ourToru Hosen
Senior Managing Executive Officer
Corporate General Manager, Semiconductors Business Group

competitors, and use a direct liquid cooling structure. We have

Supplied to

Net sales in FY2021

178.8 billion yen
59%

Industry(Magnetic disks
4%)

Strengths* Ratios for net sales are calculated based on amounts before elimination and adjustment of inter-segment transactions.

[Power semiconductors]• High performance devices that greatly improve power conversion efficiency• Packaging technologies that achieve high levels of heat dissipation andhigh reliability• Product development capabilities of modules that contribute to increasing
the efficiency, compactness, and reliability of power electronics

adopting our modules in Japan and overseas.
In addition, there is a growing need for silicon carbide

Steadily implementing production capacity
augmentation
In order to respond to strong demand for power(SiC) products, which can significantly reduce power loss

semiconductors, we have decided to increase our cumulative

compared to Si products, and we have decided to work withplant and equipment investment for the five years up to fiscal

our customers to develop new SiC products and to invest in

2023 from ¥120 billion in our initial plan to ¥190 billion.

increasing production of SiC power semiconductors.
We will continue to work to increase sales beyond thePromoting Material Initiatives
for Management

41%

Automobile[Industry]
Inverters, Machine tools, Air conditioners, Solar and wind power,
Electric railways[Automobile]
Motor drives for electrified vehicles (EVs, HEVs, etc.),
Engine control, Brake control

Going forward, we will continue to capture the strong
demand in these markets to boost sales.

continued their development to meet customers’ requirement
specifications, more and more manufacturers and models are

Business Areas

energy and FA markets.

For the manufacturing process of power semiconductor
chips, we are accelerating investments to increase thegrowth of the xEV market.

production capacity for 8-inch Si wafers and plan to increase* RC-IGBT: Reverse-conducting IGBT

production capacity in fiscal 2022 by about 2.4 times the levelof fiscal 2019. For the assembly process, we are continuing
investments to increase the production capacity for automotive
and industrial products.

Market Trends and Business Opportunities

For SiC products, as the SiC module market is expected toPower semiconductors help save energy thanks to their hightargets, will grow at an average annual rate of 42%* from 2019

levels of conversion efficiency and power control. Demand

to 2023.

for these devices is rising globally, driven by environmental

In the industry field, due to growing demand for energy

action aimed at decarbonization and increasing investment insaving and automation, demand is expected to continue toautomation in the manufacturing industry.

grow for factory automation equipment, such as inverters

In the automotive field, the shift from gasoline-powered
vehicles to electrified vehicles (xEVs) is gaining momentum
in various countries around the world, and production of fullgrow from fiscal 2024 onward, mainly for EV applications, weare preparing for the start of mass production at Fuji ElectricTsugaru Semiconductor in fiscal 2024.

RC-IGBT Features[RC-IGBT structure][Temperature distribution
during chip operation]

Plant and Equipment Investment (Whole Segment) (Billions of yen)and machine tools, and applications for renewable energy,
including solar and wind.

190.0
IGBT

* Fuji Electric forecast based on research firm forecasts

FWD

IGBT

FWD

hybrid and electric vehicles (EVs), which are Fuji Electric’s

120.0
FWD

IGBT

71.7

In fiscal 2021, despite the impact of our exit from the magnetic

Business Performance Trends (Billions of yen)
Industry

Automobile

Magnetic disks (included in industry area)

Operating margin

RC-IGBT

RC-IGBTFiscal 2021 Results and Fiscal 2022 Plan

31.3

Chip mounting area reduced by 25%

Chip heat rise reduced by 33%

Miniaturization

High reliability

disk operation, increased demand for power semiconductors

FY2019Results

41.9
19.9
FY2020Results

FY2021Results

FY2019-2023
Medium-Term
Management Plan

FY2022
Management
Planfor automotive and industry applications, as well as
accelerated expansion of 8-inch silicon (Si) wafer production
178.8 15.2%

157.5
11.2%

27.1

15.3%
100.2

30.5

105.7

FY2020Results

6.0

year on year, and operating income of ¥30.5 billion, up ¥3.4

99.8

billion, with an operating margin of 15.3%.

6.4
Operating
Income7.0

15.2%, up 4 percentage points from the previous fiscal year.
for xEVs, we forecast sales of ¥200.0 billion, up ¥21.2 billion

103.5

Net
Sales

over the previous fiscal year, with an operating margin of
In fiscal 2022, thanks to sales growth in the growing market

17.7

19.1

capacity, has led to a significant increase in sales and income

Net
Sales

Operating
IncomeFY2021Results

Net
Sales

Operating
IncomeFY2022
Management Plan

* Results for FY2021 reflect the business restructuring in FY2022.

Changes in Performance of Power Semiconductor Modules
for xEVs

Output current density (ratio)*

73.1

54.0

200.0

SiC modules

Fuji Electric Report 2022

236
160

Si IGBT modules

3.0
2.0

4th-generation

100

124

3rd-generation
2nd-generation

1.0
FY2019Results

Direct liquid cooling 1st-generation
0

FY2015

FY2020* Ratio with the 1st generation set to 1

25

8-Inch Si Wafer Production Capacity

5.0
4.0

FY2019-2023
Medium-Term
Management Plan
(Revised)

FY2025

FY2030

FY2020Results

FY2021Results

FY2022
Management Plan

* For production capacity (year-end comparison), FY2019 (benchmark year) is assigned 100 forcomparison purposes.

Fuji Electric Report 2022

26

Power Generation

Priority Measures

We will transform our portfolio and strengthen profitability
by expanding our renewable energy, after-sales,
and nuclear power-related businesses.

We are promoting the transformation of our business portfolio

Solar and wind power

in response to the accelerating tide of decarbonization.

For solar power generation, we are pursuing increased

In addition to our core renewable energy and after-sales

orders by leveraging our strengths in high-efficiency powerbusinesses, we will expand business in the decommissioning

conditioning systems, as well as solutions that use storage

and waste treatment sectors in nuclear power-related facilities

batteries to contribute to power stabilization and peak shifts,

and increase sales in the carbon-free sector.

and by responding to the need for distributed power sources
in Japan, for example with regional microgrid construction andTadao Horie
Executive Officer
Corporate General Manager, Power Generation Business Group

Expanding orders for renewable energy

self-consumption power generation facilities in the industrial

Geothermal power

sector. Overseas, we will seek to expand orders by leveraging

In geothermal power generation, where we have the top

the supply chain we have established for geothermal power

Business Areas

market share in the industry, we are expanding our businessgeneration and other projects, particularly in Southeast Asia.

Net sales in FY2021

mainly in Japan, Asia, and Africa. Fuji Electric has the78.6 billion yen
Renewable energy
Geothermal power, Hydro power,
Solar power, Wind power, Fuel cells

Nuclear power-related
equipment

Power generation companies

advantage of being able to handle flash cycles, which areout our ongoing large-scale self-consumption wind power

Strengths• Engineering capabilities across the whole plantsuitable for high-temperature heat sources, and ORC*, which

generation facility project, we will strengthen our proposals• One-stop proposal capabilities in geothermal power

can generate power from low-temperature heat sources, as

in Japan by leveraging the know-how we have accumulated

a single company. Taking advantage of this strength, we willthrough this project and our strengths in power stabilization

intensify proposals to expand orders in Japan for small-scaletechnology and other areas.

• Extensive delivery track record in hydro power• Power storage control technologies and economic efficiency insolar and wind power

Promoting Material Initiatives
for Management

Thermal power

For wind power generation, in addition to steadily carrying

Supplied toheat sources of 5 MW or less, which have short lead times.
in countries developing geothermal power systems in Asia

Expanding our nuclear power-related equipment
businessand Africa.

Amid progressive efforts to improve the safety of nuclear-* ORC (Organic Rankine Cycle): A method of generating electricity using a low-boiling
medium with a low evaporation temperature instead of water and steam

related facilities, we are continuing to contribute to safe andOverseas, we will continue to promote activities to win orders

Market Trends and Business Opportunities
In response to the growing problem of climate change, theregional microgrids as distributed power sources is graduallymarket for renewable energy is expanding as the trend toward

expanding in Japan, while Official Development Assistancedecarbonization accelerates.

(ODA) projects are taking shape in Southeast Asia.

secure decommissioning and waste treatment by utilizing Fuji
Electric’s strengths in remote handling (including nuclear fuelHydro power

removal and storage), radiation measurement, radioactive

In response to the high level of power plant S&B* demand,

waste cutting and solidification, and other technologies.

For geothermal power generation, although businessIn the nuclear power generation sector, safety is a top

we are expanding orders by leveraging our strengths innegotiations have stalled in some overseas markets due

priority, and there is increasing demand for decommissioning

differentiated products such as hybrid servo systems that

Expanding our after-sales businessto the impact of the COVID-19 pandemic, development isof facilities and waste treatment.

reduce environmental impact and improve reliability and

To expand sales of maintenance and replacement services,

In the after-sales sector, in response to the expansion ofmaintainability, as well as turbine technology that enables

we will develop and propose new products that meetrenewable energy sources with fluctuating output, such as

highly efficient power generation from water sources withdecarbonization needs, such as solutions for changing fuelIn hydro power generation, which is a stable source of

solar and wind power generation, there is a growing need tovaried flow rates. As of the beginning of fiscal 2022, our ordermixes. In Japan, we will strengthen our solution proposals

electricity, demand continues in Japan for replacing aging

improve the output adjustment capabilities of existing thermal

backlog had grown around 3.1-fold for the past 4 years, andby increasing the efficiency of power generation facilities

power generation facilities and rising output.

and geothermal power generation facilities.

we will strive to respond to high workloads by developing

and improving the adjustment capabilities of existing powerand expanding human resources, with the goal of further

generation facilities, which contribute to stabilizing electric

expanding orders and sales.

power when combined with renewable energy. Overseas, we

progressing in Japan, and projects with low capacities arestarting to materialize.

For solar power generation, demand for the construction ofwill strengthen our proposals to ensure that we capture the* S&B (Scrap and Build): Achieving efficiency by scrapping or eliminating obsolete andinefficient facilities and replacing them with new ones

Fiscal 2021 Results and Fiscal 2022 Plan

maintenance needs of existing power generation facilities inSoutheast Asia and other regions.

We are focusing on improving profitability as well as promoting

Business Performance Trends (Billions of yen)

the transformation of our portfolio with a focus on the

Operating Margin

renewable energy and after-sales businesses.
In fiscal 2021, despite a decrease in sales due to rebound80.4

from large-scale renewable energy projects recorded in the

82.0

78.6

5.0%
4.0%

Carbon free

Carbon emitting

Service

New installations

previous fiscal year, the operating margin improved to 4.0%,
reflecting differences between projects and cost reductions.
In fiscal 2022, thanks mainly to higher sales in the renewable

3.1%

Percentage of Sales by Sector

40%

56%

35%

27%
54%

55%

energy and after-sales businesses, particularly geothermal
3.1

2.5
Net
Sales

Operating
IncomeFY2020Results

27

Fuji Electric Report 2022

4.1

Net
Sales

Operating
IncomeFY2021Results

power generation, we forecast net sales of ¥82.0 billion, up¥3.4 billion year on year, and operating income of ¥4.1 billion,

Net
Sales

Operating
IncomeFY2022
Management Plan

60%

73%

65%
44%

45%

46%

up ¥1.0 billion, with an operating margin of 5.0%.
FY2020Results

FY2021Results

FY2022
Management Plan

Fuji Electric Report 2022

28

Food and Beverage Distribution

Priority Measures

the added value of products that meet market needs andExpanding sales and further improving
profitability in the vending machine business

Offering high-value-added products thatmeet diversifying needs

In the vending machine sector in Japan, we will continue

In the field of store distribution, we will develop total solutions

reducing the total cost of manufacturing.

to introduce high-value-added vending machines that are

centered on convenience stores, including showcases,

energy-saving and cashless. In addition, we will expand sales

counter fixtures, automatic change dispensers, and vending

and improve profitability by developing DX-related products

machine convenience stores. In the store distribution market,

such as vending machine IoT services that enable beverageneeds are diversifying, and now include energy saving, labor

manufacturers and vending machine operators to improvesaving, food loss reduction, and non-face-to-face sales.

the efficiency of product replenishment operations. Overseas,

To meet these needs, we will offer more high-value-added

in addition to energy saving, we will develop differentiatedproducts such as eco-friendly showcases that improve

Business Areas

products that meet demands for high functionality, such asenergy-saving performance, new labor-saving, energy-efficient

Net sales in FY2021

machines that support non-face-to-face sales, food delivery or

counter fixtures, and store operation management services,other services.

thereby improving profitability.

We will expand sales and improve profitability by increasing

Keiichi Asano
Executive Officer
Corporate General Manager, Food and Beverage Distribution Business Group

Supplied to90.8 billion yen
45%

Vending machines

Store facilities and equipment,
Automatic change dispensers

Strengths

Beverage vending machines,
Vending machines for food and other goods• Top market share of beverage vending machines in Japan,
China, and Southeast Asia (our estimate)• Extensive lineup of store fixtures and equipment• Energy-saving technologies centered on airflow andheating/cooling* Ratios for net sales are calculated based on amounts before elimination and adjustment of inter-segment transactions.

To improve profitability, for the fully redesigned machines toplatform design, consolidate models, and promote total cost

Developing customers with a “vending machineas a store”

reductions, including improved productivity and operational

For customers considering the use of new vending machines toefficiency in manufacturing. In addition to passing on higher raw

meet the demand for contact-free, non-face-to-face, 24-hourmaterial prices, we will revise prices to reflect product value.

sales, we will introduce vending machines that can handle abe launched in fiscal 2022, we will standardize parts throughPromoting Material Initiatives
for Management

55%

Store distribution

Beverage manufacturers, Vending machine operators,
Convenience stores, Supermarkets, POS manufacturers

variety of products, including frozen foods. Furthermore, tomeet the needs of new customers, such as restaurant chains
and retailers, a specialized sales organization to be launched inMarket Trends and Business Opportunities

fiscal 2022 will play a central role in accelerating the capture of

The food and beverage distribution market, which had

expansion of products being sold and the diversification of

declined significantly due to the COVID-19 pandemic, is on thecustomer needs in areas such as energy saving and eco-road to recovery.

friendliness, although in the case of China we are closelyWith regard to the vending machine market in Japan,
in addition to a recovery in investment by beverage

Develop Products and Solutions that Meet Diverse Needs

monitoring the lockdown and zero-COVID policy situations.
In the store distribution market, along with an increase

manufacturers, we anticipate a growing market for new

in demand for store renovations to meet energy-saving

vending machines as the demand for contact-free, non-face-requirements, particularly in convenience stores, needs are

to-face sales increases.

diversifying to include labor saving, food loss reduction, andAs for the overseas vending machine market, sales aredemand and will be a pillar of our new growth strategy.

Existing fields

Convenience and other storescontact-free, non-face-to-face interactions.

Eco-friendly showcases(CO2, long-lasting freshness,
ultralow energy consumption)

Counter fixtures

Automatic change
dispensers

IoT services(store operation
management)

Vending machine
convenience stores

Food vending machines
for overseas markets(for satellite stores)

New fields

on a recovery trend from the previous fiscal year due to theBeverage manufacturers

Fiscal 2021 Results and Fiscal 2022 Plan
In fiscal 2021, sales increased thanks to a recovery in demandBusiness Performance Trends (Billions of yen)
Vending machines

Store distribution

in vending machine investments, mainly from beverage

Operating margin

High-value-added vending
machines (energy saving,
two way communications,cashless payments)

manufacturers in Japan, and an increase in demand for store

92.0

90.8
76.6
49.5
40.7

3.3%

3.0

46.1

5.1

-5.3

Operating
IncomeFY2020Resultsof ¥92.0 billion, up ¥1.2 billion year on year, thanks to theContact-free,
non-face-to-faceongoing recovery of beverage manufacturers’ investment in

Operating
IncomeFY2021Results

Net
Sales

Operating
IncomeFY2022
Management Plan

is projected to increase by ¥2.1 billion to ¥5.1 billion, with anoperating margin of 5.5%, due to increased product volume,

Energy-saving

Decarbonization

Labor-saving

Energy-saving
Operational efficiency

centered on frozen food vending machines. Operating income
Net
Sales

Energy-saving beveragevending machines(overseas)

automatic change dispenser projects, we forecast sales

vending machines in Japan and the expansion of new markets

-6.9%
Net
Sales

Optimized operation

In fiscal 2022, despite a reactionary fall in large-scale

41.3
35.9

Online payments

income improved from a loss of ¥5.3 billion in the previous
benefits of business restructuring in the previous fiscal year.

Frozen food vending
Refrigerated goods vending
machine (FROZEN STATION)
machine (Multi-kun)

Accumulated sales data

facilities and equipment at convenience stores. Operating
fiscal year to ¥8.3 billion, a surplus of ¥3 billion, reflecting the45.9 5.5%

IoT services(vending machines)

Restaurant chains/retailers−> Customers using new
vending machines

Freezing
and heating
technologies

Contact-free,
non-face-to-faceConveyancetechnology
Water
proofing

24-hour service

Core technologies

Microconveyance

Airflow
controlstreamlining of manufacturing, and progress in measuresagainst variable costs.

29

Fuji Electric Report 2022

Fuji Electric Report 2022

30

Research and Development
Basic Policies

with higher power density for electrified vehicles (xEVs) andWe attempt to create new customer value and resolve social issues by integrating power semiconductor and power electronics
technologies with advanced digital technologies.

Contribution to Net Sales from New Products*
Overall: approx. 1.5x

promoted the development of SiC modules that achieve evenlower loss using the next-generation material.
In fiscal 2022, we will continue to actively invest in

Othersdevelopment in the power electronics and semiconductor

Fuji Electric’s Core Technologies
semiconductors with top-of-the-line power conversion

contributed to solving customers’ problems in a wide range

efficiency and power electronics to convert and utilize electricof fields from energy creation to stable energy supply, energy

power freely and without waste, as well as measurementsaving, automation, and mobility electrification. Going forward,

and control technology and heating and cooling technology

we will continue to strengthen our advanced and common

cultivated in our industry-leading vending machines. Thesefundamental technologies, as well as our core technologies,

core technologies are underpinned by high levels of advanced

all of which are the source of our competitive advantage, andtechnology and common fundamental technology, both analog

work to create new customer value and solve social issues.

and digital, including materials and analysis, electrochemistry,

Energy saving

Stable energy supply

products, strengthen the competitiveness of our products,
and expand sales of new products, thereby contributing to
the achievement of the sales targets of the Medium-Term

Mobility electrification

Measurement andcontrol technology

As a medium- to long-term initiative, we are strengthening

development. To achieve the sustainable growth of Fuji

our technology marketing*, which envisages social issues

Electric, the sales, business, and R&D divisions collaborate

10 years into the future. At the same time, we are stepping

cross-sectionally to analyze market and customer trends fromup our search for themes to address increasingly complex

a medium- to long-term perspective, and then match market

issues through both advanced technology development andneeds with Fuji Electric’s mix of technologies to create newsocial acceptability research. In fiscal 2021, we establishedbusiness opportunities and social value through products.

Headquarters to accelerate and promote future new productSocial issues

Heating andcooling technology

Breaking
andInsulating

Customer value

AI andMachinelearning

Grid control

Simulation
and CAE*2

Changes in
population structure
due to aging

Information
systems

Clean energy

Stable energy
supplyEnergy saving
Problems
surrounding
resourcesand energy

etc.
*1 EMC: Electromagnetic Compatibility

Medium- to long-term
development themes

Power Generation

DigitalPower
conversion
and EMC*1* This means uncovering new customer value from a technology-oriented perspective,
creating an ecosystem with potential customers, and co-creating a product market,
before creating the product itself.

*2 CAE: Computer Aided Engineering

Power Electronics

Semiconductors

Automation

Food andBeverage Distribution

Efforts to Achieve the Medium-Term Management Plan
As part of the growth strategy in the FY2023 Medium-Term
Management Plan, we announced a policy of investing
80% of our R&D expenditure in our power electronics andPower Electronics
Semiconductors
Power Generation
Advanced Technology and Common Fundamental Technology

substation equipment and control systems to expand overseas

2.0
1.2

field, including ships. Meanwhile, in response to the difficulty
in procuring parts, we focused on changing the designs of

4.1

4.1

2.2
1.7

79%

78%
14.4

16.4

FY2021Results

FY2022
Management Plan

(3) Patents related to our food and beverage distribution sector

management resource. We are strengthening intellectual

Among our global intellectual property activities, we areproperty at the source of business planning and R&D andcontinuing to address intellectual property issues overseas andpromoting global intellectual property strategies, including thetake measures against counterfeit products. For international

promotion of international standardization. Our aim is to build astandardization, we foster the development of standards

group of patents that will give us an advantage in our business,in close cooperation with the International Electrotechnicalsuch as:Commission (IEC), which is in charge of standards related to(1) Patents related to enhancing efficiency and energy savingof power electronics products

existing products to facilitate adoption of alternative parts. In
semiconductors, we focused on developing automotive IGBTs

Intellectual Property Initiatives
Fuji Electric considers intellectual property to be an important

12.5

12.1

businesses and products for electrification in the mobility

Food and Beverage Distribution

37.0

33.8

In fiscal 2021, we invested ¥33.8 billion in R&D, 78% of
power electronics, we are developing global products such as

CO2 separation and recovery technology
Hydrogen generation andutilization technology
Distributed power management systems
and equipment
Digital substations
Environmentally friendly substation equipment
High-voltage direct power electronics product
Smart factories
Next-generation waste heat recovery andapplied technology
Power electronics equipment forelectriﬁed vehicles
SiC devices for electriﬁed vehicles
Next-generation wide-band gap devices
Smart store systems

R&D Expenditures (Billions of yen)semiconductor businesses.
which was for power electronics and semiconductors. In

Business and technology mix

Circuits
and Signal
processing

FY2023
TargetMedium- to Long-Term R&D Initiatives

Global warming

Materials
and Analysis

Powerelectronics· Global products
Transformers, GIS, UPSs,
induction furnaces,
control systems,
low/high voltage inverters· Mobility
Railways, ships* New products: Products within 5 years of market launch

Advanced and common fundamental technologies underpinning core technologies
Analogapprox. 2.2x

· 7th-generation IGBTs
Semi· Automotive IGBTs
conductors · SiCs

FY2021Results

expected to grow by about 1.5 times compared to fiscal 2021.

Fuji Electric’s core technologies
Power electronics

Semiconductors Power electronics:
Powerelectronics

Management Plan. In fiscal 2023, sales of new products are

a New Products Development Office in our Corporate R&D

Automation

Approx. 60%

Semiconductors:
approx. 1.4x

Promoting Material Initiatives
for Management

AI and machine learning, and system control. Fuji Electric has

Power semiconductors

Otherswill accelerate the development and market launch of new

Fuji Electric has four core technologies, centered on power

Energy creation

Approx. 70%

businesses, including mobility and global products. We

electrical and electronics technologies, as well as other industry
organizations in Japan and overseas.

(2) Patents related to power semiconductors, including SiCrelated technology*F igures for R&D expenditures are classified by segment according to theme andtherefore differ from figures stated in the consolidated financial report.

31

Fuji Electric Report 2022

Fuji Electric Report 2022

32

Environment

Environmental Vision 2050 Initiatives
Achieve a decarbonized society

We will take advantage of our energy andenvironmental technologies to contribute tosolving social and environmental issues on theway to achieving our Environmental Vision 2050.

GHG emissions throughout the supply chain (Scope 1+2+3)
Our total emissions in fiscal 2021 were 180 million tons, up
Of the total emissions, 99.8% are Scope 3*. The increase wasmainly due to large-scale thermal power EPC (engineering,procurement, and construction) projects for power generation

Takashi Obinata

plants, which accounted for 61% of the total emissions at

Executive Officer
Corporate General Manager, Production & Procurement Groupapproximately 1.1 million tons. As large-scale thermal power

become more and more important for businesses to address

Electric as an “A List Company” with excellent climate

environmental challenges.

change initiatives and information disclosure. We will continue

In light of the global movement toward carbon neutrality

to work to solve social and environmental issues throughour decarbonization initiatives, taking advantage of the

our “Environmental Vision 2050” and “Fiscal 2030 Target”

technologies we have cultivated to date in the energy andestablished in 2019 were revised in 2021.

environment fields.

emit greenhouse gases as we approach fiscal 2030.

Scope 1
and 2

FY2020FY2019ResultResult<Base Year>approximately 70,000 tons compared to the previous fiscal
year. In the future, along with plant and equipment investment

and expanding procurement of renewable energy electricity.

and we are considering new targets that reflect these goals.

[Key emission reduction factors]• Eliminated use of solvents by discontinuing production of magnetic disks at
Fuji Electric (Malaysia) Sdn. Bhd.
• Reduced insulating gas (SF6) used in gas abatement apparatuses andother equipment for various semiconductor processes

Revised Environmental Vision 2050 and Fiscal 2030 Target(10,000 t-CO2)

46

44

Scope 236

35

sets the long-term direction of our environmental activities,
we clearly stated that we target carbon neutrality across the
supply chain. We also revised our interim Fiscal 2030 Target
and set a new target for reducing greenhouse gas (GHG)
emissions not only for our company but across the supply
chain that includes our business partners.
Our new Fiscal 2030 Target corresponds to the “1.5°C level”
accreditation criteria of the international Science Based Targets
initiative (SBTi). Fuji Electric applied for SBT certification in
March 2022.

Scope 1

25
57

FY2020FY2019ResultResult<Base Year>FY2021ResultFY2022
TargetEnvironmental Vision 2050
We aim to achieve a “Decarbonized Society,”“Recycling-Oriented Society,” and “Society in Harmony with
Nature” by expanding use of Fuji Electric’s innovative clean
energy technology and energy-saving products.
Achieve a
Decarbonized Society

Target carbon neutrality across the supply chain

Achieve a RecyclingOriented Society

Promote green supply chains and 3R activities
to reduce environmental impact to zero

Achieve a Society inHarmony with Nature

Aim for zero influence on the ecosystem bycorporate activities contributing to biodiversity

We aim to achieve the following goals in order to limit thetemperature rise to 1.5°C above pre-industrial levels.
Greenhouse gas emissions throughout the supply chain (Scope 1+2+3):
Reduction of over 46% (compared to FY2019)
Greenhouse gas emissions during production (Scope 1+2):
Reduction of over 46% (compared to FY2019)*
Contributions to CO2 emissions reduction in society through our products:
Over 59 million tons/year* Reduction rate from FY2013: 54%

Percentage of total shown in parentheses

was 45.44 million tons, up approximately 4.17 million tons

(10,000 t)

from the previous fiscal year. By business segment, the largest
contributions came from Power Electronics, which contributes
to energy saving, and Power Generation, which handles
geothermal, hydro, and solar power generation.
* Contribution amounts are calculated based on the reduction of CO2 emissions fromproducts shipped in fiscal 2009 and thereafter that are in operation for one year.
CO2 emissions that can be reduced by using Fuji Electric products = (emissions fromexisting products - emissions from new products) × number of units in operation in thecurrent year

4,127

99
Food andBeverage Distribution
1,470Power Generation
572
Semiconductors
Power Electronics• Inverters• High-efﬁciency motors, etc.

(2%)
(36%)
(14%)

1,986

(48%)

FY2020Result

105

4,544

54.7

(2%)

1,528

(34%)

625

(14%)

2,286

(50%)

<Reference>
Net Sales¥910.2 billion

FY2021ResultOthers

90.8
78.6
178.8

(9%)
(8%)

555.1

(58%)

-47.5

Elimination andCorporation

FY2021Result(19%)

Achieve a recycling-oriented society
Fuji Electric is committed to practicing the 3Rs (Reduce,

equipment in semiconductor factories, which use a lot of

Reuse, Recycle) throughout our supply chain, including

water. Going forward, we will promote the efficient and cyclicalthrough life cycle assessments at the design stage anduse of resources and consider shifting to a circular economy

green procurement. We are also focusing on reducing waterthat increases added value in order to build a “green supply

consumption through recycling, and are installing recycling

chain” as set forth in our environmental vision.

Ratio of waste sent to landfill
In fiscal 2021, the ratio of waste sent to landfill was 2.3%, a
0.5 percentage point increase from the previous fiscal year,

Amount and Ratio of Waste Sent to Landfill
Amount of waste sent to landﬁll (t)Ratio of waste sent to landﬁll (%)

reflecting greater disposal of sludge into landfill due to achange in the acceptance criteria at the company that recycles

recycling rate by increasing the accuracy of sludge separation.

678
489

345

the sludge generated at our semiconductor plant in Malaysia
into cement. In fiscal 2022, we will work to increase theFuji Electric Report 2022

FY2030TargetContributions to CO2 emissions reductions in society through our products

Fiscal 2030 Target

33

-46%

125

Our contributions to CO2 emissions reductions* in fiscal 2021
In the revisions to our Environmental Vision 2050, which

FY2030TargetEmissions in fiscal 2021 were 360,000 tons, a decrease ofgeneration equipment on factory premises in Japan and overseas

recycling-oriented society and a society in harmony with nature,

FY2022
Target* Calculated in accordance with the Ministry of the Environment’s “Basic Guidelines on
Accounting for Greenhouse Gas Emissions Throughout the Supply Chain.”emissions through measures such as installing solar power

are increasingly active social movements aimed at achieving a

FY2021ResultGHG emissions during production (Scope 1 and 2)

to reduce power and fuel consumption, we plan to reduce

Beyond the goal of achieving a decarbonized society, there

67

57

Promoting Material Initiatives
for Management

and the Japanese government’s decarbonization goals,

However, we aim to increase the ratio of energy that does not-46%

Scope 3the target for fiscal 2022 is set at the same level as fiscal 2021.
For the third consecutive year, the CDP certified Fuji

(Million t-CO2)

125

EPC projects are expected to continue in the next fiscal year,
As efforts toward decarbonization spread internationally, it has

181

180

approximately 123 million tons from the previous fiscal year.

1.8

2.3
1.2

1.1
FY2019ResultFY2020ResultFY2021ResultFY2022
TargetFuji Electric Report 2022

34

Water consumption per unit of sales
In fiscal 2021, water consumption per unit of sales was

Water Consumption per Unit of Sales and Recycling Rate
Water consumption per unit of sales (thousand tons / ¥100 million)

1,100 tons per ¥100 million, a significant decrease from theprevious fiscal year. The main factor was the suspension of

16.6

18.4

withdrawal from the magnetic disk business. In addition, the

1.5

1.5

FY2019ResultFY2020Result

1.8

Yamanashi Factory, which produces semiconductors.

Overview

External Scenarios Adopted

Scenario in which stringent measures are taken to limit the global averagetemperature rise as of 2100 to below 1.5°C above the pre-industrial average,
using technologies and solutions scaled up from the “below 2°C” scenario.

IEA*1: World Energy Outlook (WEO) 2020 NZE
IPCC*2: “Special Report on Global Warming of 1.5°C” RCP2.6

1.1

company-wide recycling rate increased from 18.4% to 20.8%
as a result of the expansion of water recycling facilities at the

Recycling rate (%)

20.8

production at Fuji Electric (Malaysia) Sdn. Bhd. due to our

Risks and Opportunities and Adaptation Measures in the “Below 1.5°C” Scenario

FY2021Result*1 IEA: International Energy Agency*2 IPCC: Intergovernmental Panel on Climate Change

FY2022
TargetRisks

Achieve a society in harmony with nature
We aim to ensure that our products are designed andand overseas engages in its own environmental protection

manufactured in a way that does not adversely affect theactivities to meet local needs. Going forward, we will consider

ecosystem so our customers can use them with peace ofspecific targets and measures for achieving zero impact on

mind. To preserve biodiversity, meanwhile, each base in Japanecosystems from business activities.

Our volatile organic compound (VOC) emissions in fiscal(Shenzhen) Co., Ltd., which produces semiconductors, and2021 were 617 tons, a reduction of more than 200 tons

the discontinuation of production of magnetic disks at Fuji

compared to the previous fiscal year. The main factors wereElectric (Malaysia) Sdn. Bhd.

the enhancement of VOC recovery equipment at Fuji Electric

Approach to Disclose Climate-Related Information in Accordance with TCFD Recommendations
The TCFD* recommendations require companies to disclose

provided regular updates on the progress of our efforts in theseinformation on Governance, Strategy, Risk Management, andfour areas. (For more information, please visit our website.)

Metrics and Targets related to climate change. Since declaring* TCFD: Task Force on Climate-related Financial Disclosures•D eterioration in profit due toprocurement difficulties and cost
increases

Adaptation Measures• Promotion of parts standardization andunification• Expanded use of recycled materials in
products

Development
and Design•D elays in technology development tomeet decarbonization requirements

Manufacturing•C ost increases associated withdecarbonization of production facilities(plant and equipment investment andother costs, purchase of renewableelectricity)——• Promotion of “local production for local
consumption” (inventory reduction,
logistics cost reduction, tax saving)

Logistics

Customers andMarkets• Loss of business opportunities due
to lack of support for 100% usage of
renewable energy during production• Decrease in demand for thermal power
generation• Increased demand for technologies
needed to promote decarbonization•P romote multi-sourcing•S upport for decarbonization of key
suppliers•A ccelerate R&D of new technologies
related to decarbonization, release
them to the market in a timely manner,and reduce their costs
Promoting Material Initiatives
for Management

Amount of volatile organic compound (VOC) atmospheric emissions

Suppliers

Opportunities•E xpand parts recycling throughcollaboration with customers andrecycling companies•S trengthen reduction of greenhousegas emission at production facilities• Increased demand for renewable energy
and energy-saving products•R espond to increased demand
by increasing production capacity[Semiconductors]•S hift resources to renewable energy
business [Power generation]• Increased demand for renewal ofthermal power generation services due
to changes in fuel types for thermal
power generation and the spread of
CCS and CCUS

support for the TCFD recommendations in June 2020, we have
Approach to Disclosing Climate-Related Information in Accordance with TCFD Recommendations
https://www.fujielectric.com/company/csr/global_environment/management_02_03.html

Overview

Items Required
for Disclosure

Governance

Strategy

RiskManagement

Metrics andTargets

35

Risks and Opportunities and Adaptation Measures in the “4°C” Scenario

Our Approach

Major Initiatives in Fiscal 2021

• The SDGs Promotion Committee (established in 2020 and consisting ofmanagers from all business, sales, and corporate divisions) deliberates on climatechange-related issues and evaluates policies.

The SDGs Promotion Committee met twice to address climate change-related
issues (in May and December 2021).
• Proposed revisions to the Fiscal 2030 Target in the Environmental Vision 2050
were compiled and discussed at the Executive Committee meeting and reported
to the Board of Directors.
• Climate change-related risks, opportunities, and adaptation measures based on
multiple scenarios were compiled and discussed at the Executive Committee
meeting and reported to the Board of Directors.

• The results of the Committee’s deliberations and evaluations are reported to
the Executive Committee (consisting of all executive officers and Standing Audit& Supervisory Board Members) and the Board of Directors for deliberation asnecessary.
• We will analyze and identify risks and opportunities that climate change poses
to our business (including supply chain) from short-, medium- and long-term
perspectives using multiple temperature rise scenarios, and incorporate theimpacts and adaptation measures into our business strategies.
• We will disclose the risks and opportunities, adaptation measures, financial
implications, and other information in a phased manner as the formulation
progresses, taking into account management priorities.

• In addition to analyses using two temperature rise scenarios, “below 2°C” and“4°C,” conducted in fiscal 2020, we identified risks and opportunities under
the scenarios of “below 1.5°C” and “4°C” and developed adaptation measures(disclosed in March 2022).

• Fuji Electric will systematically recognize and evaluate risks that may affect its
management, and appropriately manage and deal with such risks in accordancewith the Fuji Electric Risk Management Rules (hereinafter referred to as the “RiskManagement Rules”).

• Recognizing climate change-related risks as one of the risks that may affectmanagement, we added them to the list of “external risks” stipulated in the Risk
Management Rules.
• In accordance with the risk management process stipulated in the Risk
Management Rules, we conducted segment-specific risk identification, asemi-annual (interim) assessment, and an annual assessment.

• Recognizing climate change as one of the external risks that may affectmanagement, we will assess and manage it in accordance with the Risk
Management Rules.
• We will use the Fiscal 2030 Target in the Environmental Vision 2050 as indicators
for assessing climate-related risks and opportunities, and the medium-term targets
will cover greenhouse gas emissions along the entire supply chain (Scope 1+2+3).

Fuji Electric Report 2022

* Time frames considered: short term (up to 2022), medium term (up to around 2030), long term
(up to around 2040)

External Scenarios Adopted

Scenario in which a global average temperature rise of around 4°C above
the Industrial Revolution period is assumed unless measures exceeding thecurrent level are taken.

Risks• Delays in procurement of parts• Cost increases due to wind and flood damage
countermeasures in response to frequent
extreme weather events• Delays in outdoor construction and service work
• Delays in product delivery due to the disruptionof logistics network and influence to production

IPCC: “Fifth Assessment Report” RCP8.5

Opportunities• Increased demand resulting from active
investment in BCP measures by customers

Adaptation Measures• Promote multi-sourcing of parts (identify parts
with high procurement risk due to thedisasters, and diversify risks)• Reinforce wind and flood protection measures
for factory buildings in Japan and overseas
located mainly in bay areas and areas coveredby hazard maps

• We established a new reduction target for greenhouse gas emissions across the
supply chain based on the “below 1.5°C” scenario.

Fuji Electric Report 2022

36

Human Resources(20%) as new employees for the fifth year in a row since 2018.
in supervisory positions, we promote two major initiatives:

document delivery work and cleaning work as well as

implementing intensive training for ambitious female employees

manufacturing support and light-duty work at each operatingand establishing a workplace environment that is pleasant forsite, and the company is actively working on expanding theTakeshi Kadoshima

female employees to work in.

scope of duties to focus more on manufacturing support andThanks to the promising results of these initiatives, theManaging Executive Officer
General Manager, Human Resources and General Affairs Office

One of Fuji Electric’s management policies is to “maximize

growth, corporate prosperity, and profit returns based on an

our strengths as a team, respecting employees’ diverse“employee-first” approach.

ambition,” and the Fuji Electric Code of Conduct states that

We will also continue striving to reinforce our operating
foundations, such as by pursuing initiatives aimed atfor human rights, health and safety, and the protection ofrespecting human rights—a topic of great social interest—

our employees’ health to be the foundation of our businessencouraging the active participation of diverse humanactivities and actively invest in people to encourage activities,

resources, enhancing initiatives aimed at revitalizing senior

training, and suitable assignment of human resources, which

employees and securing personnel in line with the Company’s

become the core of our efforts to achieve the sustainable

workforce composition, aiming to significantly improve ourgrowth of our business.

business efficiency, promoting workstyle reforms that facilitate

In terms of promoting human resource measures, we

work-life balance, and promoting other initiatives to address
various issues in a timely manner.

Respect for Human Rights
Based on the United Nations Guiding Principles on Businessapproach to internationally agreed upon human rights as welland Human Rights, we are working to establish a sustainable

as the relationship between corporate activities and humancorporate structure that is never involved in or complicit inrights. In addition, based on our belief that running a pleasanthuman rights violations. Based on our Policy for Human Rights

workplace where human rights are respected is a key sourceof the Employees, we implement human rights due diligence*of corporate competitiveness, we provide all of our employees

targeting our operating sites and consolidated subsidiaries

with ongoing training aimed at preventing harassment.

both in Japan and overseas.
In fiscal 2021, in relation to our initiatives aimed at

Fiscal 2022 is the first year during which we will implementhuman rights due diligence once in two years—instead of once

respecting human rights, we provided improvementin three years as was our conventional approach—and we

instructions to overseas consolidated subsidiaries for whichhave also revised the details by switching to a self-assessment

we confirmed that improvements are necessary. We alsothat complies with the latest international standards, thereby

strived to flesh out our human rights awareness-raising training

increasing the effectiveness of our approach.

related to the responsibility of companies to respect humanrights. More specifically, we implement training that deepens* Human rights due diligence
Efforts to recognize, prevent, and deal with the risk of human rights violation risks in advancethe understanding of our team leaders and managers of our

Promoting Active Participation of Diverse Human Resources

The major duties covered by the company include internal

light-duty work.

Ministry of Economy, Trade andAs of June of 2022, 431 differently abled people were

Industry—in collaboration with theregistered, and the employment ratio of such people wasTokyo Stock Exchange—has selected

2.95%, well above the statutory employment rate (2.3%). We

us as a Semi-Nadeshiko Brand.

will continue striving to hire about 20 differently abled people
per year as we secure and expand duties available to themPromoting the active participation ofsenior employees

and work on achieving stable employment.

To respond to the workforce composition, which is aging due

Workstyle reforms

to the declining birthrate and aging population, it is becoming

As part of our Company-wide Pro-7 Activities, we promoteincreasingly important to promote the active participation of

initiatives based on two perspectives: workstyle reforms

senior employees.

aimed at improving work efficiency and quality as well as theEver since we introduced our Selective Retirement

achievement of work-life balance.

Extension System for general employees in fiscal 2000, we

Regarding workstyle reforms, we started promoting

have strived to improve the user friendliness of the systemcompany-wide initiatives in fiscal 2017, including reducing

while establishing it, and our employees use the system tolong working hours, encouraging the use of vacation time, andselect their retirement age from the range between 60 and 65

otherwise striving to achieve a well-balanced workstyle, mainly

years old in accordance with their life plan. We also introduced

by implementing steady awareness-raising and visualizing

our Senior Task System for managers in fiscal 2020, which

the actual working hours by utilizing IT. We have also beenenables senior employees aged 60 and over to receive thegradually expanding the users of our diverse work systems

same treatment as younger employees depending on thefor promoting flexibility of working hours and locations, anddetails of their work and their performance. This system is

we have used the COVID-19 pandemic as an opportunity

intended to boost the motivation of our senior employees.

to increase the user friendliness of these systems. To help

In addition, to enable employees of age 65 or over tofacilitate work-life balance, we have also set up various

continue to contribute by demonstrating their advanced skills

systems that support life at work and at home, including

and knowledge until they are up to 75 years old, we establishedvacation systems for childcare and family care, reduced

the Employment Guidelines for Employees over 65, which are

working hour systems, and vacation time when a spouses isused to promote the active participation of senior employees.

transferred in Japan and overseas.

Promoting the active participation ofdifferently abled people

to improve employee productivity—we established new

The Company established Fuji Electric Frontier in 1994 asworkstyles with a high time value. We also revised our systems

a special-purpose subsidiary under the Act on Employment

to strengthen our support for balancing work and childcare,

Promotion etc. of Persons with Disabilities. By increasing theincluding relaxing the requirements for our telework system

hiring of differently abled people and expanding their scopeand establishing a special paid leave system for femaleof duties, this company is gradually expanding its bases andemployees who have to leave the workplace for a while due tocurrently has 12 bases at every one of our major operating

childbirth, and childcare as a way to help them get back to thesites, through which efforts are underway to promote theworkplace sooner.

In fiscal 2021—in an effort to change attitudes in orderrules for providing an allowance to employees who achieve

Promoting the active participation of
female employees

our project members actively established points of contact withAmong our diversity initiatives, we place particular emphasis

hire. As a result, we reached our target ratio of females hired

Fostering Next-Generation Management

Changes in the Ratio of Females Hired, Ratio of Female Managers,and Number of Female Employees in Supervisory Positions

We are also taking active measures to foster future

in an effort to achieve systematic line manager training. By

management candidates who will lead our sustainable growth.

combining these two systems, we are striving to connect

Our human resource development covers three main areas.

posts that require succession training to individual training,on stepping up measures to promote the active participationof women. We have established fiscal 2023 targets of aratio of females hired of 20% and 400 female employees
in supervisory positions, and we are implementing various
measures to achieve these targets.
We have set up a project aimed at hiring women, especiallythose with science and engineering backgrounds. In fiscal
2021—as a countermeasure against COVID-19—we conducted
online interviews alongside the usual face-to-face ones, andFuji Electric Report 2022

Promoting Material Initiatives
for Management

we will respect and value all people. We consider respectconsider it important to achieve a virtuous cycle of employee

37

active participation of differently abled people.

To reinforce operating foundations forsustainable growth, we will promote further
revitalization and training of human resources.

In addition, to increase the number of female employees

female students in an effort to increase how many women we

2020

2021

2022

2023
(Target)Ratio of females hired*1

22%

20%

21%

20%

Ratio of female managers*2

2.5%

2.8%

3.1%

3.0%

No. of female employees insupervisory positions*3

268

300

328

400

(FY)

Data collected from the Company and consolidated subsidiaries that adopt the same
personnel system (6 companies in total)*1 Graduates from universities or technical colleges*2 Managerial positions or above *3 Team leaders or above

The first is carefully selecting young trainees, the second isthereby achieving more effective management-candidate

effective OJT (on-the-job training) based on a training plan,

training. We also strive to work out the details by sharing

and the third is participation in selective training. In fiscal 2021,

and discussing the following and other details with executive

to complement our future management candidate training

officers: trainee selection details, the implementation status ofsystem, we launched our Line Successor Planning Systemtraining rotations, and who has undergone selective training.

Fuji Electric Report 2022

38

Corporate Governance
Basic Policies

Nomination and Remuneration Committee

In strengthening our corporate governance, our basic policies

stakeholders, ensure proper information disclosure andare to protect shareholder rights and ensure their equaltransparency, execute the duties of the Board of Directors,

treatment, cooperate appropriately with non-shareholder

and engage in dialogue with shareholders.

Corporate Governance Framework
Fuji Electric’s corporate governance framework consists

and expedite decision-making, we have introduced anof the Board of Directors, which performs the functions ofexecutive officer system to clarify the duties, authority, andmanagement supervision and making important decisions,

responsibilities of each executive officer and streamline theand the Audit & Supervisory Board, which is in charge of theexecution of duties.
In order to continue strengthening our operating foundation

management audit function. As a company employing the

as a company with sustainable growth, in April 2022 we

Board suitably undertakes audits of the Company’s Directors

appointed a Chief Executive Officer and Chairman and a Chiefand Executive Officers and guarantees objectivity and neutrality.

Operating Officer and President. We are endeavoring to build

The Company actively appoints Outside Directors and Audit

an effective corporate governance framework with the use of& Supervisory Board Members that satisfy the requirements

the Executive Committee, which discusses and reports on

for independence, endeavors to strengthen management

important matters related to management as an advisory bodysupervisory and auditing functions, and has established theto the Representative Director, Chairman of the Board, Chief

Nomination and Remuneration Committee comprising a

Executive Officer and Representative Director, Director andmajority of Outside Directors as an advisory body to the Board

President, Chief Operating Officer, as well as other committees

of Directors.

tasked with planning and promoting key business strategy

In addition, in order to separate management and execution

issues and key external issues, such as legal compliance.

Corporate Governance Framework
General Meeting of Shareholders
Appointment/
Dismissal

Appointment/
Dismissal

Board of Directors
Comprising 10 Directors(including 4 Outside Directors)
Consultation/
Recommendations

Nomination andRemuneration Committee

Appointment/
Dismissal

Audit & Supervisory Board
Audit
Oversight
ReportAccounting Auditors

Comprising 5 Audit &Supervisory Board Members

Cooperation(including 3 Outside Audit &Supervisory Board Members)* Committees

Audit

Representative Director, Chairman of the Board,
Chief Executive Ofﬁcer
Representative Director, Director and President,
Chief Operating Ofﬁcer[Key issues for Fuji Electric froman SDGs perspective]
Executive
Committee• SDGs Promotion Committee[Legal compliance andother key external issues]Committees*
Internal Auditing Divisions[Key business strategy issues]

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(As of June 28, 2022)

39

Fuji Electric Report 2022

Fuji Electric Compliance Regulations
Fuji Electric Compliance Program
Business Ethics Whistle-Blowing Systems
Fuji Electric Risk Management Rules• Fuji Electric Compliance Promotion Committee• Health & Safety Promotion Committee

Fuji Electric Rules for Prevention of Insider Trading
Fuji Electric Group Contingency Plan for
Emergency Situations
Auditor Liaison Committee etc.

• Skills Development Committee• Production Technology Committee• Technology Development Committee• International Standardization Committee

Matters for Consultation(1) Policy on the composition of the Board of Directors(2) Policies and criteria regarding the appointment or dismissal of
Directors, the President and Chairman of the Board of Directors,
and Audit & Supervisory Board Members(3) Appointment or dismissal of Directors, the President andChairman of the Board of Directors, and Audit & Supervisory
Board Members(4) Matters regarding the formulation and implementation of a
succession plan for the President and Chairman of the Board of
Directors(5) Policies and criteria regarding the remuneration of Directors andAudit & Supervisory Board Members(6) Details of remuneration for Directors and Audit & Supervisory
Board Members

The committee comprises at least three Directors as
members, the majority of which are elected from among theCompany’s Outside Directors. The chairman is electedfrom among the Outside Directors that sit on the committee
as members.
The Nomination and Remuneration Committee met
three times in fiscal 2021 to discuss and confirm executive
remuneration, compliance with the revised Corporate
Governance Code, and executive appointments, as well as
to deliberate and report to the Board of Directors on advisory
matters concerning appointment of Directors and Audit &Supervisory Board Members.

Promoting Material Initiatives
for Management

corporate auditor system, Fuji Electric’s Audit & Supervisory

Fuji Electric has established the Nomination and Remuneration
Committee as the advisory body for the Board of Directors
in order to enhance the Company’s corporate governanceby reinforcing the fairness, transparency, and objectivity ofprocedures concerning the nomination of and remuneration for
Directors and Audit & Supervisory Board Members.

Nomination and Remuneration Committee (Fiscal 2022)
The Committee Chairman
Outside Director
Toshihito Tamba
Committee Members
Outside Directors
Naoomi Tachikawa, Yoshitsugu Hayashi
Standing Directors Michihiro Kitazawa, Shiro Kondo

Appointment of Directors and Audit & Supervisory Board Members
Fuji Electric’s policy on nominating candidates for Directors
and Audit & Supervisory Board Members is to decide on
candidates by taking into account such factors as the overallbalance of qualifications and experience on the Board of
Directors, and other viewpoints such as diversity.
Persons with the qualifications, experience, and otherattributes required to execute the Company’s management
policies are appointed as Standing Directors. Persons equippedwith the insight and experience required to make multilateralbusiness decisions who also have an understanding of Fuji
Electric’s management are appointed as Outside Directors,
including persons with management experience at othercompanies, knowledge in the energy and environment fields
related to our business, and international experience.

Each Director’s term of office is one year so that we maintainthe management framework capable of making clear the
responsibilities of management in each fiscal year and of
responding quickly to changes in the business environment.
Persons familiar with the Company’s operations in general
who also possess expert knowledge and experience areappointed as Standing Audit & Supervisory Board Members.
Persons equipped with the expert knowledge and experience
required to undertake audits who also have an understandingof Fuji Electric’s management are appointed as Outside Audit& Supervisory Board Members. For instance, corporate
managers, persons with experience as a standing auditor of alisted company, or legal experts.

Independence Criteria for Outside Directors and Audit & Supervisory Board Members
Fuji Electric judges the applicable candidate to be fully
independent from the Company when he/she does not fallunder any of the conditions listed below, in addition to thecriteria for independence stipulated by domestic financial
exchanges, including the Tokyo Stock Exchange.
(1) Major shareholder
A major shareholder of the Company (who owns 10% or moreof 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 theCompany 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 is
indispensable for the Company’s funding and on which theCompany depends to the extent that it is irreplaceable.
(4) Accounting Auditor
A certified public accountant who belongs to an auditing firmthat serves as the Accounting Auditor of the Company or an
employee of or any other person belonging to such auditing firm.
(5) Donee
A person executing the business of an organization which
receives a donation exceeding 10 million yen per year that isgreater than 2% of its annual income from the Company forthe past three fiscal years.

Fuji Electric Report 2022

40

List of Officers (As of June 28, 2022)
Areas Expected to Director by the Company

Directors
Business
Management

Finance andAccounting

GlobalBusiness

Environment
and Society

Audit & Supervisory Board Members

Corporate
R&D,
Governance, Marketing andTechnology,
Industry
Manufacturing, Legal Matters,
and Risks
and DX

Yoshio Okuno

Junichi MatsumotoStanding Audit & Supervisory Board Member

Standing Audit & Supervisory Board Member

Chairman of the Audit & Supervisory Board

Michihiro Kitazawa
Representative Director
Chairman of the Board of Directors
Chairman of the Board and Chief Executive Officer
Nomination and Remuneration Committee member

Tetsuo Hiramatsu

Hirohiko Takaoka

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Shiro Kondo

Chairman & Representative Director, Chuo-NittochiGroup Co., Ltd.
Chairman & Representative Director, Chuo-NittochiCo., Ltd.

Representative Director
President and Chief Operating Officer
In charge of Corporate R&D
Nomination and Remuneration Committee member

Yuko Katsuta
Outside Audit & Supervisory Board Member
Partner, ITN Partners

Toshihito Tamba
Promoting Material Initiatives
for Management

Outside Director
Nomination and Remuneration Committee
chairman
Executive Adviser, Tokyo Century Corporation

Naoomi Tachikawa
Outside Director
Nomination and Remuneration Committee member

Executive Officers
Position

Yoshitsugu Hayashi
Outside Director
Nomination and Remuneration Committee member
Distinguished Professor, Center for Sustainable
Development and Global Smart City, Chubu University

Yukari Tominaga
Outside Director
External Director, MORINAGA MILK INDUSTRY
CO., LTD.
Outside Director, Yashima & Co., Ltd.
Outside Director, SB Technology Corp.

Michio Abe
Director
Senior Managing Executive Officer
In charge of Production & Procurement and Power
Generation Business

Junichi Arai
Director
Senior Managing Executive Officer
Corporate General Manager,
Corporate Management Planning Headquarters
General Manager, Export Administration Office
In charge of compliance management

Toru Hosen
Director
Senior Managing Executive Officer
Corporate General Manager, Semiconductors
Business Group

Name

Division

President Executive
Officer

Shiro Kondo

Chief Operating Officer; In charge of Corporate R&D

Senior Managing
Executive Officer

Michio Abe

In charge of Production & Procurement and Power Generation Business

Senior Managing
Executive Officer

Masatsugu Tomotaka

In charge of Power Electronics Sales, Power Electronics Energy Business,
Power Electronics Industry Business, and Fuji Electric FA Components & Systems Co., Ltd.

Senior Managing
Executive Officer

Junichi Arai

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

Senior Managing
Executive Officer

Toru Hosen

Corporate General Manager, Semiconductors Business GroupManaging
Executive Officer

Takeshi Kadoshima

General Manager, Human Resources and General Affairs Office; In charge of crisis management

Managing
Executive Officer

Masashi Kawano

Corporate General Manager, Power Electronics Energy Business GroupManaging
Executive Officer

Hiroshi Tetsutani

Corporate General Manager, Power Electronics Industry Business GroupManaging
Executive Officer

Yoshitada Miyoshi

General Manager, President’s Office; In charge of SDGs Promotion, and Public Relations and IR

Executive Officer

Kenji Goto

Deputy Corporate General Manager, Power Electronics Energy Business Group

Executive Officer

Masahiro Morimoto

President and Representative Director, Fuji Electric FA Components & Systems Co., Ltd.

Executive Officer

Tadao Horie

Corporate General Manager, Power Generation Business Group

Executive Officer

Masato Miyake

General Manager, Legal Office, Corporate Management Planning Headquarters

Executive Officer

Keiichi Asano

Corporate General Manager, Food & Beverage Distribution Business Group

Executive Officer

Takashi Obinata

Corporate General Manager, Production & Procurement Group

Executive Officer

Hiroshi Ishii

Corporate General Manager, Power Electronics Sales Group

Hiroshi Tetsutani
Director
Managing Executive Officer
Corporate General Manager, Power Electronics
Industry Business Group

41

Fuji Electric Report 2022

Fuji Electric Report 2022

42

Activities of Outside Directors and Audit & Supervisory Board Members in Fiscal 2021

Remuneration for Directors and Audit & Supervisory Board Members

To strengthen our management supervisory and auditing functions, and to ensure the validity and appropriateness of our important

Process of determining remuneration

Policy regarding decisions on remuneration

decisions, the Directors and Audit & Supervisory Board Members play the proper roles as stated below.

Consulted by the Board of Directors, the Nomination andWe have established a remuneration system and remuneration

Remuneration Committee discusses policies and criteria

levels that are deemed appropriate for their respective

concerning remuneration as well as the details of remuneration.

duties and in accordance with shareholder mandates, giving

The Board of Directors resolves on the policy for the final

due consideration to the aims of securing and maintaining

decisions respecting the details of the committee’s report thatcompetent personnel and providing incentives for thethe Board of Directors has received from the Committee.

improvement of business performance.

Outside Directors

Name

Status of Attendance at Board of
Directors Meetings(Meetings Attended/Meetings Held)
Status of Attendance at Nomination
and Remuneration Committee(Meetings Attended/Meetings Held)

13/13
3/3

Toshihito Tamba

13/13
3/3

Yoshitsugu Hayashi

The actual decision on remuneration amounts for individual[Board of Directors]
Mr. Tamba offered opinions as necessary on all areas of Fuji Electric’s management, including on the following
matters, based on his professional standpoint and considerable insight as a manager of listed companies.
• Formulation of a business plan taking into account changes in the market environment• Appropriate ways to carry out IR activities[Nomination and Remuneration Committee]
Mr. Tamba led the supervisory function in appointment of candidates for Directors and Audit & Supervisory Board
Members and the process of determining remunerations for Directors and Audit & Supervisory Board Members froman objective and neutral standpoint.
[Board of Directors]
Mr. Tachikawa offered opinions as necessary on all areas of Fuji Electric’s management, including on the following
matters, based on his professional standpoint and considerable insight as a manager of listed companies.
• Managing the progress of management plans• Managing the progress of large-scale orders[Nomination and Remuneration Committee]
Mr. Tachikawa carried out the supervisory function in appointment of candidates for Directors and Audit &Supervisory Board Members and the process of determining remunerations for Directors and Audit & Supervisory
Board Members from an objective and neutral standpoint.
[Board of Directors]
Mr. Hayashi offered opinions as necessary on all areas of Fuji Electric’s management, including on the following
matters, based on his professional standpoint and considerable insight about the environment, transportation, andurban sustainable development fields that are closely related to the Company’s management policies.
• Initiatives to realize a decarbonized society• How to discuss sustainability at Board of Directors meetings[Nomination and Remuneration Committee]
Mr. Hayashi carried out the supervisory function in appointment of candidates for Directors and Audit & Supervisory
Board Members and the process of determining remunerations for Directors and Audit & Supervisory Board
Members from an objective and neutral standpoint.

Status of Attendance at Board of
Directors Meetings(Meetings Attended/Meetings Held)
Status of Attendance at Audit &Supervisory Board Meetings(Meetings Attended/Meetings Held)

Main Activities

13/13
10/10

[Board of Directors]
Mr. Hiramatsu confirmed and offered opinions as necessary concerning agenda items and the status of Fuji
Electric’s business activities based on his extensive experience and considerable insight as a manager at financial
institutions.
[Audit & Supervisory Board]
Mr. Hiramatsu confirmed and offered opinions on the legal compliance of the overall business activities of Fuji Electric.

Tetsuo Hiramatsu

Hirohiko Takaoka

Yuko Katsuta

43

Fuji Electric Report 2022

appropriate or whether they need reviewing in light of changes

Michihiro Kitazawa, but within the limit resolved at the Generalin the operating environment or objective external data.

Meeting of Shareholders and with reference to the details of
the committee’s report.
Classification-Based Remuneration System
Classification

Remuneration System

The amount of performance-linked remuneration for Standing Directors is based on the payment level that pushes up the
proportion of performance-linked remuneration when there is a rise in the consolidated ratio of operating income to net sales,
which is set as a critical target in a medium-term management plan. The previous year’s consolidated performance (e.g., net
sales, operating income, net income, and dividends) is taken into account to make the final decision. The consolidated ratio of
operating income to net sales for fiscal 2021 was 8.2%, and performance-linked remuneration accounted for about 53% of
the remuneration.

Standing Directors

Base Remuneration
Base remuneration is a predetermined amount that is paid monthly at a certain time according to their position. A portion of
the base remuneration 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 annually at a certain time only in instances in which dividends are paid to allshareholders from retained earnings. The total amount of performance-linked remuneration shall be within 1.0% ofconsolidated net income for the fiscal year prior to the date of payment in order to make the link with consolidated results foreach fiscal year more clearly.

Standing Audit & Supervisory Board Members
Outside Directors and Audit &Supervisory Board Members

A predetermined amount is paid monthly at a certain time according to their position as base remuneration. Stocks in the
Company may be acquired at their own discretion.

Remuneration by Classification (Fiscal 2021)

Outside Audit & Supervisory Board Members

Name

We routinely verify that the system and levels are

Directors is left to the discretion of Representative Director

Promoting Material Initiatives
for Management

13/13
3/3

Naoomi Tachikawa

Main Activities

13/13
10/10

[Board of Directors]
Mr. Takaoka confirmed and offered opinions as necessary concerning agenda items and the status of Fuji Electric’s
business activities based on his extensive experience and considerable insight as an experienced Full-time Audit &Supervisory Board Member and any other type of executive of listed companies.
[Audit & Supervisory Board]
Mr. Takaoka confirmed and offered opinions on the legal compliance of the overall business activities of Fuji Electric.

13/13
10/10

[Board of Directors]
Ms. Katsuta confirmed and offered opinions as necessary concerning agenda items and the status of Fuji Electric’s
business activities based on her expert knowledge as an attorney.
[Audit & Supervisory Board]
Ms. Katsuta confirmed and offered opinions on the legal compliance of the overall business activities of Fuji Electric.

Remuneration by Type (Millions of Yen)

Total Remuneration(Millions of Yen)

Base Remuneration

Performance-Linked
Remuneration

Number of Recipients

Standing Directors

610

269

341

6

Standing Audit & Supervisory Board Members

58

58

—

2

Outside Directors and Audit &Supervisory Board Members

50

50

—

6

Classification

Amount of Contributions to Director Shareholding Association and Shares of the Company Acquired (Fiscal 2021)
Amount of Contributions to the Director Shareholding Association(Millions of Yen)

Shares of the Company Acquired(Hundreds of Shares)

Directors

19

37

Audit & Supervisory Board Members

48Classification

Fuji Electric Report 2022

44

Training Policy for Directors and Audit & Supervisory Board Members

Internal Control System

Before taking office, Standing Directors and Audit &With the aim of complying with laws and regulations, managing
the risk of loss, and securing the efficiency of the execution ofduties, the Fuji Electric Board of Directors has determined basic
policies concerning the establishment of an internal control
system as stipulated in the Companies Act of Japan, andthe Company discloses those policies. Fuji Electric discloses
information on the implementation of its internal control system,
thereby taking steps to respond promptly and accurately to thedemands placed upon the Company by society.

Supervisory Board Members undergo compliance training,which also encompasses legal and taxation matters. They
are also provided opportunities after taking office to acquirenecessary knowledge on an ongoing basis.
Before taking office, Outside Directors and Audit &Supervisory Board Members are briefed on the state of
the Company and the roles they are expected to perform.

Outside Directors and Audit & Supervisory Board Members
visiting the Chiba Factory

After taking office, they have the chance to deepen theirunderstanding of the Company through presentations on theMain systems based on the internal control systemstrategies for business, R&D, and other operations and byCompliance system
Based on systems for ensuring that Directors and employees

inspecting business bases.

Evaluation of Effectiveness of the Board of Directors

Audit & Supervisory Board Members and Internal Audits
thereof. The results of the survey are reported to the Board of

Directors with the use of a third-party survey in order to verify

Directors, and issues that require improvement going forwardwhether the Board of Directors is properly fulfilling its expected

are shared with everyone.

Strengthening collaboration between audit functions

Method of Evaluation of Effectiveness of the Board of Directors

We ensure the effectiveness of Fuji Electric’s audit functions
by reinforcing collaboration between statutory audit functions(Audit & Supervisory Board Members, Accounting Auditors)andinternal audit functions (Internal Audit Office). We will continue

Evaluation method

Anonymous survey of all the Directors and Audit & Supervisory Board Members conducted by a third party

Main Initiatives for Strengthening Collaboration

Main question categories(1) Board of Directors make-up, administration, discussions, and monitoring functions(2) Support structure and training for Directors and Audit & Supervisory Board Members(3) Dialogue with shareholders(4) Initiatives implemented by Directors and Audit & Supervisory Board Members themselves

roles and functions and to facilitate further improvements(1) Subjects answer a survey conducted by a third party(2) The third party identifies issues based on a results report and advice(3) Board of Directors analyzes, discusses, and assesses the findings

medium- to long-term issues, it was agreed that challenges

discussions as well as support for Directors and Audit

lie ahead in order to further improve the Board’s functions and& Supervisory Board Members, earned mostly positive

invigorate discussions.

assessments, thereby assuring the overall effectiveness of theGoing forward, after due consideration, we will promptly

Key matters shared by Auditor Liaison
Committee (once yearly)

Statutory audit functions

On the other hand, in light of the opinions in the survey
calling for more in-depth discussions about materialof this effectiveness evaluation so that we continue working toInternal audit functions

Audit & Supervisory Board
Accounting Auditors

Audit &
Supervisory Board Members

Internal Audit Ofﬁce

Information shared between Audit &Supervisory Board Members andthe Internal Audit Ofﬁce (once monthly)Group Auditor Committee (every quarter)

Information shared by Auditor Liaison
Committee (once monthly)

Subsidiary, which is a large company under the Companies Act

Statutory audit functions

address the issues that have been shared based on the results

Board of Directors.

to strengthen this collaboration going forward, with a particularfocus on project management for large-scale projects,
compliance audits, and audits at overseas subsidiaries.

Fuji Electric

Summary of evaluation results and issues to be addressed
The performance of the Board of Directors, including

Promoting Material Initiatives
for Management

We conduct the evaluation of the effectiveness of the Board of

Evaluation process

perform their duties in a manner that is compliant with laws
and the articles of incorporation, Fuji Electric has establishedand promotes a compliance system in order to secure thetransparency and soundness of business execution.
Risk management system
Based on regulations and other systems pertaining tomanaging the risk of loss, Fuji Electric has developed an
appropriate risk management system in order to manage
business risks in a coordinated, systematic manner. In regard
to specific cross-sectional risks, the Company determines
departments to put in charge of each risk, thereby establishinga risk management system.

Accounting Auditors

Internal audit functions

Audit &
Supervisory Board Members

Internal Audit Ofﬁce

enhance the functions of the Board of Directors.

Major Issues and Major Initiatives Identified in the Effectiveness Evaluation of the Board of Directors

45

Major Issues

Major Initiatives in FY2021

Policies for Major Initiatives in FY2022

Further discussion of key medium- and long-term
issuesDiscussed each segment’s business plans and strategies,
major issues of the SDGs Promotion Committee, andpolicy on cross-shareholding.

Continue to work on enhancing opportunities for reportingand discussing key issues.

Diversity in the composition of the Board of
Directors (further consideration of knowledge,
experience, expertise, gender, internationality, etc.)

Selected members of the Board of Directors for the next
term, including three new Directors (one of whom is afemale Director).

Continue to engage in vigorous discussions at themeetings of the Nomination and Remuneration
Committee and Board of Directors.

Enhancement of information provision andexchange of opinions on our business andproducts through factory visits

Resumed factory inspections for Outside Directors andAudit & Supervisory Board Members, which had beensuspended due to the COVID-19 pandemic, and conducted
inspections of the Yamanashi Factory and Chiba Factory.

Continue to work to provide enriched information on
our business and products, as well as to enhance
opportunities for exchanging opinions among Directors
and Audit & Supervisory Board Members.

Report on dialogue with institutional investors

Reported to the Board of Directors on the status of IR
activities as well as opinions and requests from analysts
and institutional investors.

Continue to work on initiatives from the previous fiscal
year.

Fuji Electric Report 2022

Audits by the Audit & Supervisory Board Members
Audit & Supervisory Board Members conduct audits inaccordance with the audit policies and duties assigned and incompliance with the standards for audits established by the
Audit & Supervisory Board. They report the details and resultsof their audits to the Audit & Supervisory Board.
In fiscal 2021, the Audit & Supervisory Board convened
ten times in total. Every meeting was attended by all of theCompany’s Audit & Supervisory Board Members. During themeetings, the Audit & Supervisory Board mainly reviewed audit
policies and plans, the appropriateness of auditing methods
and results of the Accounting Auditors, and undertook an
assessment of the Accounting Auditors. It also reported on

and reviewed important matters that the Standing Audit &Supervisory Board Members communicated to the Outside
Audit & Supervisory Board Members.
Main tasks• Attending and offering opinions at meetings of the Board of
Directors, the Executive Committee, the Compliance Promotion
Committee, and other important committees• Reviewing documents pertaining to important resolutions• Receiving explanations on the status of operational execution
from Directors and internal auditing divisions• Investigating the status of operations and assets at Fuji Electric’s
business divisions, consolidated subsidiaries in Japan and overseas,
and companies undertaking M&As (done remotely as necessary)

Fuji Electric Report 2022

46

Dialogue with Shareholders and Investors

Internal audits
In fiscal 2021, utilizing remote auditing, we conducted

Every second year, the internal auditing divisions as bodies
directly under the President perform the following audits on Fuji

audits at 42 bases, or about 40% of the audit sites. No risks or

Electric’s business divisions and subsidiaries in accordance

inadequacies with the potential to seriously affect managementwith internal auditing standards and annual audit plans.

were discovered.

Type of Audit

Main Tasks

Organizational management

Evaluating the appropriateness of management and administration (development of regulations, approval
procedures, performance management, etc.)

Basic policies

Opinions of analysts and institutional investors

We disclose information in accordance with various laws andWe actively engage in dialogue with analysts and institutional

regulations. Even if we are not required to do so by law, weinvestors, and the information shared at briefings and thealso strive to disclose corporate information thought to haveprincipal feedback and requests we receive during private

a significant impact on investment decisions in a timely, fair,meetings are shared with the executive officers and Board ofand equitable manner, so that we might earn the trust of our

Directors, so that we discuss them as management issues.

shareholders and investors and ensure they have a proper

The main opinions and requests received from analysts andunderstanding of the Company.

institutional investors in fiscal 2021 are as follows.

Risk management

Evaluating the effectiveness of risk management systems and risk response

Compliance

Checking for compliance with laws and regulations based on the Fuji Electric Compliance Program andconfirming legal compliance

Major initiatives in fiscal 2021

Business execution

Evaluating the appropriateness, efficiency, and effectiveness of business execution (booking of sales andpurchases, investments, cash flow, etc.)

online, provided more elaborate information than ever to

Accounting

Evaluating the appropriateness of cost accounting and the soundness of assets and liabilities

IR information on our website in order to ensure that our

We handled more media coverage on conference calls or
disclose at the IR briefings, and published more detailed
shareholders and investors have a clearer understanding of our

Policy on Cross-Shareholding and Current Status
Fuji Electric holds listed shares as a matter of policy in order toand strengthen relations with the investee companies and of

maintain and strengthen relations with its investee companies.

the comparison of capital cost and return. The details of the

Our basic policy is to reduce cross-shareholdings. Even inreview are disclosed.
The voting rights that come with cross-shareholding arecases where we recognize a certain rationality in holding
these cross-shareholdings, we will reduce them while paying

exercised after considering all relevant factors, including

attention to the impact on management and business.

whether the proposed action will help the issuing company

Timely disclosure (examples)• Losses Caused Due to Product Defect (April 2021)• Announcement of the Board of Directors’ Resolution
on Selection of New Market Segment “Prime Market”(September 2021)• Notice Concerning Change of Representative Director(February 2022)

Based on the above policy, we have reduced the number ofto establish an appropriate corporate governance framework

different listed stocks we held from 102 as of the end of fiscal

and to increase its medium- to long-term corporate value, andExplanatory forums for analysts and investors

2018 to 45 as of the end of fiscal 2021.

what impact the action will have on Fuji Electric. We also have

• Financial results presentations(April, July, and October 2021; January 2022)• Management plan presentations (April 2021)• Business strategy presentations (May 2021)• ESG Meeting (March 2022)

The Board of Directors periodically evaluates the rationalityof shareholding in light of whether it is necessary to maintaindialogue regarding the details of the proposal, among others,with the issuing company as necessary.

Number of Cross-Shareholdings and Balance Sheet ValueType

Number of different stocks(issues)

Balance sheet value(billion yen)

End of FY2018

End of FY2019

End of FY2020

End of FY2021

Listed stock

102

79

74

45

Unlisted stock

73

69

69

69

Total

175

148

143

114

Listed stock

100.4

99.8

105.0

98.0

Unlisted stock

4.0

3.9

3.9

4.0

104.5

103.7

108.9

102.0

Total

Publication of reports for shareholders(June, August, and December 2021; February 2022)

Opinions on management and business•P romote measures to expand business in decarbonizationrelated businesses•C larify growth strategy and direction for fiscal 2024
and beyond•P romote measures to improve low-profit businesses•A ppoint female Directors to ensure diversity on the Boardof Directors•R educe cross-shareholdings

Promoting Material Initiatives
for Managementbusiness environment, business strategy, and ESG initiatives.

Main opinions and requests

Opinions on topics for information disclosure•P rospects for expanding sales in the power electronics
business and competitive strategies•C ompetitive advantage of SiC in the semiconductorbusiness and measures to expand market share•P rogress in expansion of renewable energy and after-sales
businesses in the power generation business•F uture growth potential of the vending machine market andmeasures to further improve profit margins• Initiatives to achieve the target of the Environmental Vision
2050•S trengthening information dissemination related to ourbusiness opportunities in the initiatives toward achieving adecarbonized society• Approach and measures to improve capital efficiency

Investor relations (IR) website:
https://www.fujielectric.com/ir/* In addition to the above, there are deemed cross-shareholdings (end of FY2018: ¥2.5 billion, end of FY2019: ¥2.2 billion, end of FY2020: ¥2.2 billion,
end of FY2021: ¥1.9 billion). The amount of deemed shareholdings is calculated by multiplying the market value of shares as of March 31, 2022 by
the number of shares held.

47

Fuji Electric Report 2022

Fuji Electric Report 2022

48

Compliance
Basic Policies

Fuji Electric Business Ethics Whistle-Blowing
Systems

The Fuji Electric Code of Conduct states that Fuji Electric

To prevent infractions of laws and regulations and ensuremust “make global compliance a top priority.” In addition,

Fuji Electric Compliance Regulations

we have defined the Fuji Electric Compliance Regulations, aguideline for compliance, under the supervision of the Boardof Directors. We also globally promote compliance throughBoard of Directors

the Fuji Electric Compliance Program and the Fuji ElectricBusiness Ethics Whistle-Blowing Systems.

Executive Committee

Promotion System

Fuji Electric
Compliance Promotion
Committee

The Fuji Electric Compliance Promotion Committee is headed
by our President and COO as its Chairman, and it consists

early detection, we have introduced and are operating thewebsite and briefing sessions for business partners.
In fiscal 2021, there were 31 reports.
Note that we work meticulously to protect whistle-blowers

Fuji Electric Business Ethics Whistle-Blowing Systems.

by keeping their personal information confidential andUnder these systems, internal and external parties can reportprohibiting disadvantageous treatment and retaliatory orreal or suspected violations of laws, regulations, or internal

discriminatory acts on the grounds of whistle-blowing. In

rules—including matters related to bribery and corruption—to

addition, we take all necessary steps to resolve issues raised

the President and COO of Fuji Electric via whistle-blowing

by whistle-blowers, including fact-finding investigations,contact points (in-house contact points and external lawyers).

corrective actions, recurrence prevention measures, and(Anonymous reporting is also possible.)

disciplinary actions. We also provide the details of ourBusiness Ethics Helpline

response to the whistle-blowers themselves as feedback. (WeThe Business Ethics Helpline handles reports from ouralso strive to indirectly provide feedback through the above

executives and employees in Japan and overseas (including

measures in the case of anonymous whistle-blowing.)

department heads) responsible for regulating laws and acts,

among employees through publications in the Company

Protection Act on June 1, 2022, we significantly strengthenedmagazine and the intranet.

our protection of whistle-blowers by expanding the coveragePartner Hotlineof the protection to encompass all Fuji Electric executives and

The Partner Hotline handles reports from external stakeholders.

employees, including retirees.

Fuji ElectricBusiness Ethics
Whistle-Blowing Systems

with Standing Audit & Supervisory Board members andoutside experts (attorneys) as observers. The Committee
meets twice per year to deliberate on the implementation
status of the Fuji Electric Compliance Program and the Fuji
Electric Business Ethics Whistle-Blowing Systems as well

Fuji Electric
Compliance Program

Business Ethics Helpline(reports from executives andemployees, including retirees
and dispatch employees)

as the plan for implementing the Fuji Electric CompliancePartner Hotline

Program and then reports to the Board of Directors once per

Promoting Material Initiatives
for Management

Due to the enforcement of the revised Whistleblowerof control chiefs (managers of businesses and corporate

retirees and dispatch employees). It is thoroughly promoted

It is thoroughly promoted among them through posts on thePartner Hotline
https://www.fujielectric.com/company/procurement/partnerhotline.html(reports from business partners)

year. In the event of a compliance infraction, the Committee* In-house contact points and external lawyers
receive whistle-blowing reports.

has a system in place to take any necessary measures after
deliberating on fact-finding investigations, corrective actions,recurrence prevention measures, internal punishments, andinternal and external disclosure.

Results of Promotion
In fiscal 2021, there were no compliance infractions with thesubject to disciplinary actions due to the violation of our anti-

potential to seriously impact management.

bribery rules, and no fines, surcharges, or settlements related
to bribery were incurred.

Bribery prevention

Status of Promotion

With the article “Make global compliance a top priority” statedFuji Electric Compliance Program

Compliance education

Fuji Electric has established the Fuji Electric Compliance

We promote wide-ranging compliance education and

Program to cover four aspects related to compliance with

instruction through level-specific and job-specific groupJapanese and overseas laws by both the Company and its

training and e-learning programs, as well as by displaying

Group companies in Japan and overseas. Through reviews

posters internally and distributing pamphlets.

and revisions made by the Fuji Electric Compliance Promotion
Committee, we conduct activities while also actively acquiringexternal certifications and disclosing information externallyin order to verify the effectiveness of our activities from anexternal perspective.

Fiscal 2021 Compliance Education Results (examples)
Training
category

Newly appointed
executives

Fuji Electric Compliance Program
Target laws (examples)• Bribery, anti-corruption,and competition laws
• Labor and human rights• Product safety and theenvironment• Taxation and accounting• Information security• Export management

49

Fuji Electric Report 2022

Participants

Establishment, revision, abolition, anddissemination of internal rules

Levelspecifictraining

Daily monitoring of the status of compliancewith laws and internal rules

Newly appointed
managers

New employees

Details

29

127

257

Auditing by third parties

Compliance education

Jobspecifictraining

Sales andadministrative
division employees

2,893

Building a legal compliancesystemCompliance with major laws
Overview of our Fuji Electric
Compliance Program andBusiness Ethics WhistleBlowing Systems

Compliance with major laws

Prevention of competition law infractionsin the Fuji Electric our Corporate Code of Conduct, we have

In an effort to prevent the violation of competition laws,

declared our commitment to bribery and corruption prevention,

we have established and appropriately revise daily business

and we have disclosed the Fuji Electric Anti-Bribery Policy as

rules, including our Antimonopoly Act Compliance Manualpart of the Fuji Electric Code of Conduct. Under this policy,

and Foreign Competition Law Compliance Manual. We

we endeavor to prevent bribery throughout the supply chain,

also perform daily monitoring by confirming quotations

such as by ensuring that no Fuji Electric employee (including

and estimates via a comprehensive bidding information

dispatch employees) ever engages in bribery or any act thatmanagement system and extensive record-keeping. In

could arouse the suspicion of bribery and by requesting that

addition, our internal auditing divisions perform audits

all of our stakeholders—including suppliers and other businessin accordance with auditing guidelines, and we conduct

partners—strive to prevent bribery.

extensive level-specific and job-specific training.

We have also established the Fuji Electric Anti-Bribery

Any employee who is involved in the violation of competition

Guidelines as a set of rules for Fuji Electric employees

laws will be subject to strict disciplinary actions based on our(including dispatch employees) to help them prevent bribery

work rules.

during their daily business, and we endeavor to prevent bribery
through the execution of the Fuji Electric Compliance Program.
Any employee who is involved in bribery will be subject tostrict disciplinary actions based on our work rules.

In fiscal 2021, there were no incidents of employees being
subject to disciplinary actions due to the violation of ourcompetition law rules, and no fines, surcharges, or settlements
related to competition laws were incurred.

In fiscal 2021, there were no incidents of employees being
Fuji Electric Anti-Bribery Policy
https://www.fujielectric.com/company/box/doc/Anti-Bribery%20Policy.pdf

Fuji Electric Report 2022

50

Risk Management
Basic Policies

Major Risks

Based on the Fuji Electric Risk Management Rules, theto prevent risks from materializing (crisis situations), thereby

Company manages risks in a coordinated, systematic manner.

minimizing the impact on management in the event that risks

We practice appropriate management and counter various

do materialize.

risks that could affect Fuji Electric’s management in order

The current major risks that could impact Fuji Electric’s results or financial situation are shown below.
Risk Details

Management Strategy• We concentrate our management resources on business that is expected to grow and pursue
capital investment and R&D investment accordingly. Regarding semiconductor capital investment
in particular, we make investment decisions based on our volume and price negotiations withcustomers, and regarding R&D investment, we emphasize factors that include consistency withour business strategy, and we promote fundamental and advanced technology R&D to support our
future based on our roadmap. Be that as it may, the semiconductor field has a short product cycle,
fluctuations in the product supply-demand balance, and fierce competition, and there is still a riskof not being able to recover investments.
• We consider the protection of the global environment to be a key management issue, and wecontinuously communicate our efforts to achieve a more sustainable society through our business,
including declaring our support for the TCFD and establishing our Environmental Vision 2050.
However, if our coal-fired thermal power business becomes the subject of increased criticism dueto the strengthening of environmental regulations or initiative evaluations by ESG evaluation bodies,
there is still a risk of this impacting Fuji Electric’s reputation.

Business Strategy

Risk Management System

Business Environment

The Company’s business divisions and affiliated companies

each type of risk and inform the whole Company about ourare responsible for managing risks related to their businessefforts to manage risks through company magazines and otheractivities as a part of their business duty, developing

appropriate means.
The internal auditing divisions conduct regular audits toappropriate risk management systems, and implementing risk

check whether each business division and affiliated company

countermeasures.
Significant risks, such as those related to business plans

identifies and evaluates risks based on the Fuji Electric Risk

and large-scale investments, are reported at the Executive

Management Rules, defines countermeasure policies, andCommittee as appropriate to facilitate the sharing ofproperly builds and operates management systems.

information. We also have manuals in place to ensure thatrisks are steadily managed. We provide training in handling
Board of Directors

Audit

Audit & Supervisory Board

Cooperation

Corporate Governance• By constantly striving to improve our management transparency and auditing functions, we workon strengthening our corporate governance, but there are still risks, such as our management
falling into disorder as a result of our corporate governance failing to function when internal control
and other inadequacies occur due to unforeseen situations.

Business
Reorganizations,
Alliances, andWithdrawals• We strive to strengthen our competitiveness by collaborating with third parties, thereby building
good relationships with them as we share our corporate philosophy, etc. and endeavor to achieve
close communication, but there is still a risk of us not being able to achieve sufficient results due todifferences in systems and cultures.

Orders, Marketing, andSales Promotion• We work on avoiding opportunity loss as we strive to keep costs down and reduce our total
expenses in order to minimize the impact of Japanese and overseas market trends on our results,
but there is still a risk of the market environment worsening, the product supply-demand balance
suddenly fluctuating, competition becoming fiercer, and the price level falling significantly as a resultof the above.
• For large plant projects, we strive to improve the accuracy of our quotations when we receive
orders and strengthen our project management after orders are received in order to ensure theappropriate level of income, but there is still a risk of our profitability worsening as a result of
unforeseen specification changes after orders are received, process delays, natural disasters, etc.

Development and
Design• We focus on R&D aimed at creating competitive components and systems as well as R&D thatprovides higher value solutions to customers by combining underlying technologies, but there is stilla risk of us failing to market our products at the right time due to us losing our superiority to othercompanies as a result of rapid technological progress or failing to achieve development as planned.

Accounting Auditor

Oversight and Report

Executive Committee
ReportReportInternal Auditing Divisions

Each Committee

Each Group and Each Office (General Manager)

Audit

ReportDivisions, Area Operations, Factories, Subsidiaries

Emergency response
If an emergency arises due to a large-scale disaster or any

possible. Hence, we have guidelines in place on preparations

other serious cause, we need to act to prevent the situation

for possible emergencies, an emergency contact network, andfrom becoming any worse and resolve the situation as soon as

setting up an emergency task force.

Risk Management Process
When annual budgets are formulated, the Company’sPlanunderstanding of and evaluate risks related to their business

Understand andevaluate risks

activities.
mitigation, relocation, retention, and so forth) are consideredbased on their impact on management and frequency ofoccurrence, and each division appoints a person in charge ofpolicy and countermeasure execution.
We also conduct mid-year progress checks at the endof the second quarter of each fiscal year to improve andEngineering

Annual Risk Management Processbusiness divisions and affiliated companies gain an

Policies and countermeasures in response to risks (aversion,

Promoting Material Initiatives
for Management

Risk Items

Procurement• We deploy various means, including product swaps, to deal with the risk of the prices of raw
materials soaring, but there is still a risk of the prices of raw materials, etc. significantly rising due toyen depreciation, demand increases, and similar factors.

Production &Manufacturing• We constantly strive to understand the latest volume trends while building production management
systems that are optimal for responding to volume fluctuations, but there is still a risk of excessive
or deficient inventory if there are delays in responding to changes in volume trends due tounforeseen situations.
• We strive to promote community-based manufacturing, global procurement, but there is still arisk of delivery delays and similar problems due to the distribution network being disrupted bylimitations on the movement of goods and people.

Do

ActionConsider policies andcountermeasures toaddress risks

Improve and implement
risk countermeasures

Check
Conduct mid-year
progress checks• Results of education drills• Organizational changes,
personnel reassignments• Revision of laws, regulations, etc.
• Applying experiences of addressing risks

effectively implement risk countermeasures.
Audits by Internal Auditing Divisions

Shipping & Distribution
Installation & Delivery
Services(Management system and operational status)

51

Fuji Electric Report 2022

Fuji Electric Report 2022

52

Close Up
Risk Items
Quality Assurance

Risk Details• We have developed a quality control system, we strive to ensure a high level of quality, andwe have the necessary insurance, but there is still a risk of quality problems due to unforeseen
situations impacting our results.
• We actively educate and train our employees and are expanding our mid-career hiring to ensurethat we have outstanding personnel, but there is still a risk of us not being able to secure or train
the necessary personnel.

Finance andAccounting• We constantly verify the optimal mix of corporate bonds, commercial paper, and short-term andlong-term borrowings, thereby striving to ensure that flexible, stable funding is possible, but there is
still a risk of our interest rate burden with respect to interest-bearing debt increasing due to interest
rates rising more than expected.
• We strive to enhance our collection of trade receivables by trying to strengthen our credit
management, but there is still a risk of not being able to recover debt due to the cash flows of ourbusiness partners worsening as a result of economic stagnation and similar factors.

Legal Affairs
and Ethics• We strive to ensure compliance with laws through our Fuji Electric Compliance Promotion
Committee and have developed compliance systems that include our compliance program andinternal whistle-blowing systems, but there is still a risk of society’s trust in us or our results being
impacted if violations of laws and regulations occur.
• We are building systems to quickly handle necessary processes in preparation for lawsuits andother legal disputes (including fact-finding investigations, corrective actions, recurrence prevention
measures, internal disciplinary actions, and disclosure), but there is still a risk of us being ordered to
pay an unforeseen, large amount of compensation.
• We strive to effectively protect intellectual property rights and develop products and technologies that
respect the rights of other companies, but there is still a risk of disputes that could impact our results.

Political andSocioeconomic Trends• We implement currency exchange contracts according to certain standards, but there is still a riskof exchange rates to the yen fluctuating.
• To prepare for unexpected risks, we are trying to decentralize our production and sales bases,
but there is still a risk of our results being impacted by changes in overseas laws and regulations,political factors, social disorder, and similar issues.

Trends of Shareholders
and Other Investors• We strive to deepen everyone’s understanding of the Company’s management by emphasizing
active disclosure and communication with our shareholders and institutional investors while
also disclosing honest, accurate information, but there is still a risk of votes against executiveappointment agenda items, etc. due to differences between the intentions of investors andshareholders on the one hand and the Company’s management on the other.

Natural Disasters
and Accidents• We strive to “strengthen our business continuity capabilities,” by setting up a specialized crisis
management team involved in spearheading fire safety and disaster-preparedness activities andformulating the business continuity plans (BCPs), but there is still a risk of damage to production
facilities, operations being suspended, product shipping delays, or similar problems due to largescale disasters and accidents.

External Attacks• To respond to cyber-security threats, we implement attack monitoring and control, enhance our
defense and detection systems, and continuously strengthen our ability to respond through cyberdrills and similar measures, but there is still a risk of us losing the trust of society in cases where
our systems fail to function due to attacks from outside (cyberterrorism, etc.) and lead to problems
such as information leakage.

Individual Events(Impact of COVID-19)• We have established a set of emergency Guidelines in response to various risks. In response to
COVID-19, we collect and consolidate information and strive to promote business continuity as wetake comprehensive measures against the COVID-19 pandemic, but there is still a risk of us having
to stop various business activities if someone infected with COVID-19 is found in the workplaces of
the Company, customers or business partners.

Promoting quality assurance activities
Under its Production Technology Committee—which isheaded by the Corporate General Manager of the Production& Procurement Group and consists of Corporate General
Managers of Business Groups—Fuji Electric strives to improve
its production technologies and quality.
The High Reliability Working Group, a subordinate
organization of the Production Technology Committee, aims
to achieve a stable, uniform level of quality by formulating a
High Reliability Activities Policy every year and then applying it
to business divisions and factories to promote activities. Every
year, the working group identifies all the serious complaints
received and continually conducts recurrence prevention
diagnosis to reassess the effectiveness of recurrence
prevention measures. The working group also promptly reports
any serious quality problem that has arisen to the Company’s
President and COO, the Production Technology Committee
members, and other stakeholders in accordance with the rules
and regulations to share which risks are involved and quickly
promote countermeasures.
In fiscal 2021, a working group was set up within the High
Reliability Promotion Working Group in order to conduct
activities intended to increase the quality soundness. In addition
to the internal auditing we typically conduct, this working
group diagnoses the health of our quality control system byhaving employees of different bases mutually check whether
the quality data of each base satisfies external required
specifications and whether there are any problems with thequality data creation process. In addition, these activities areconnected to instructional activities, such as efforts to promotea mindset leading to increased quality soundness.
At our factories, we are also working on further improving
the accuracy, reliability, and speed of our quality control byutilizing the IoT to promote the visualization of production,
quality information, and traceability, expanding the range ofequipment for which we can digitize or automate tests andinspections, and phasing in statistical quality control.
Training human resources to support quality
In an effort to thoroughly learn from past product defects andfailures and to conduct activities that prevent such problems,
we have continually held the Failure Utilization Workshop since
fiscal 2006. At this workshop, we use case studies to clarify
the true causes, backgrounds, and circumstances of failures,reflect on this information, derive lessons from it, share thiswith trainees as well as other in-house parties, and utilize theresults for our daily work.

Product quality assurance
https://www.fujielectric.com/company/csr/with_customer/
quality.html

Responding to natural disasters and accidents(BCP efforts)
Based on the Fuji Electric Disaster Prevention and Procedural
Manual, all of Fuji Electric’s bases have developed disasterresponse systems and put comprehensive measures in place
to ensure that structures and facilities are earthquake resistant.
They also stockpile emergency goods, conduct regular drills,
and take other preventive measures. In addition, we regularly
conduct safety confirmation training for all employees tostrengthen our disaster response capabilities.
We have formulated business continuity plans (BCPs) at
the head office, factories, and area operations that serveas contact points with customers. We have also formulated
Company-wide BCPs for our procurement sections, which
manage our supply chain, and for IT sections, which manage
our information systems. In addition, in fiscal 2021, we
introduced our disaster prevention information system—whichenables the automatic identification of domestic business
partners located in regions affected by natural disasters—for
customers as well, and we built a system that enables us toquickly understand the customer damage situation.
The Company has also been positively evaluated for its
active business continuity efforts, and we have therefore
acquired Resilience certification.

Promoting Material Initiatives
for Management

Human Resourcesand Labor

Efforts to improve quality

Positively evaluated for active
business continuity efforts,
leading to the acquisition of
Resilience certification

Efforts to maintain and strengthen information security
To properly manage confidential and personal information,
Fuji Electric has formulated and is implementing policies andregulations related to information security. We have alsoestablished management systems at the Company as wellas Group companies in Japan and overseas, and we provide
regular training to all of our employees, manage access tooperating sites and offices, implement Internet device andcomputer security measures, and conduct annual inspections
regarding the status of efforts taken by each workplace.
In addition, to respond to increasingly diversified andsophisticated cyber-security threats, we endeavor tostrengthen our computer security incident response teamand security operation center (CSIRT/SOC), our monitoring ofsigns and information related to new cyber attacks, and our
information-system defense and attack monitoring functions.
At our bases as well, we strive to improve ourcountermeasures based on the requirements of our business
partners, related industry organization guidelines, market
trends, and other factors. At Group companies requiringhigh-level information security management, a total of fivedepartments (in three companies) have acquired information
security management system (ISMS) certification, and both theCompany and four of its subsidiaries have acquired Privacy
Mark certification.

For details on how we are responding to climate change risks, please refer to Environment on P33-36.
For details on how we are responding to supply chain risks, please refer to Sustainable Procurement on P55-56.

53

Fuji Electric Report 2022

Fuji Electric Report 2022

54

Sustainable Procurement
Basic Policies

Contributing to Business Continuity through Stable Procurement

The Fuji Electric Code of Conduct states that Fuji Electric,

society, and governance.

By identifying, assessing, and addressing supply chain risks, we aim to build stable material procurement and production systems

along with its business partners, “will promote procurement

In addition, by freely engaging in transactions with allactivities aimed at creating a supply chain that supports a

our business partners that are based on fair and equitablesustainable society.” We endeavor to ensure fair and equitablecompetition, we strive to build better partnerships,

transactions that comply with laws and regulations in Japan

deepen mutual understanding, and maintain and improve

Responding to natural disaster risks

Efforts aimed at purchasing from multiple suppliers

and overseas, and we engage in procurement activities thatcooperative relationships.

The Company has introduced a disaster prevention information

In fiscal 2021, the supply was hindered as a result of various

system that makes it possible to identify domestic businesscountries being locked down due to the impact of COVID-19,

partners located in regions affected by earthquakes andwhich resulted in the production of many industrial supply

regions for which emergency warnings have been issued.

chains stopping and other problems. The Company has

In fiscal 2021, as a result of utilizing data related to theindividually evaluated the risks associated with approximately

approximately 9,000 bases of primary and secondary business

200,000 materials that could be purchased from multiple

partners registered to our disaster prevention information

suppliers and is striving to achieve multi-sourcing for materials

system, we were able to quickly confirm the situation whenthat have risk ratings of D and E. As a result, approximately

natural disasters (mainly earthquakes) occurred, thereby

60% of its procured material items have been sourced fromavoiding effects on the Company’s production activities. We

multiple vendors thus far. In addition, we are endeavoring towill strive to more effectively visualize supply chain risks andconclude long-term contracts in order to stably procure certain

expand the number of registered business partners.

items. We will continue to consider items for which we haveover the medium and long terms.

are compatible with the sustainability of the environment,
Fuji Electric Purchasing Policy
https://www.fujielectric.com/company/procurement.html

Every year, the Company implements the self-assessment of
CSR procurement in accordance with the Fuji Electric CSR
Procurement Guidelines for its business partners to deepen
their understanding of our corporate social responsibility (CSR)
approach and initiatives we would like to have them comply

Subjects in the Fuji Electric CSR Procurement Guidelines
1. Human Rights
and Labor

4. Fair Trade andEthics7. BusinessContinuity Plan

2. Health and
Safety5. Quality and
Safety8. Establishmentof Management
Systems

3. Environment

6. Information
Security

9. Social
Contribution

with and implement while also gaining an understanding of thestatus of such efforts.

Promoting Material Initiatives
for Management

Sustainable Procurement Activities with Business Partners

not yet achieved multi-sourcing.
* Multi-sourcing refers to a system in which materials are procured from multiple
business partners.

Procured Material Risk Rating Definitions
Fuji Electric CSR Procurement Guidelines
https://www.fujielectric.com/company/box/doc/procurement/pdf/guideline_csr_e.pdf

In fiscal 2021, of about 6,000 primary business partners in

Risk

Low

PDCA for the Self-Assessment of CSR Procurement

total, we implemented our assessment for 748 major business
partners, which accounted for the top 80% of our purchasing
results during the two-year period from fiscal 2019 to fiscal• Implement the
self-assessment of
CSR procurement

2020. The survey found that 55 business partners were rated
D, which means they needed to work on improving their CSR

Business
partnersurveyCollaborative
measures

Improvement

Check• Select companies for
self-assessment• Present example initiatives
by Fuji Electric and othercompanies

Conceptual image of the disaster prevention information system(when an earthquake occurs)

High

A

Multi-sourcing complete (ordering complete)

B

Multi-sourcing preparation complete (ordering possible)

C

Material evaluation complete

D

Candidate selection complete / not yet evaluatedE

Specified customer, no alternative, discontinued, alternative unknown

efforts. We made sure that these partners were interviewed sothey would have a deeper understanding of CSR initiatives andsuccessfully make these improvements.
We will deepen our communication with our business• Establish improvement
activities• Interviews and on-site
observation

partners so that we can work together to create a supply chainthat supports a sustainable society.

Number of Companies that Conducted the Self-Assessment
Business partners

Fiscal 2021 Assessment Results by RatingC
21
companies
(3%)

B
92
companies
(12%)

55

Fuji Electric Report 2022

748
companies in
total

Japan
OverseasD
55
companies(7%)

TOPICS

Implementing compliance education related to procurement activities(once a year or as necessary)

In October of 2020, we took our support for the

consultations from other divisions. We selected candidates

Declaration of Partnership Building promoted by thefrom various Fuji Electric Group bases, had them attend

Cabinet Office and the Small and Medium Enterpriselectures on related laws, and trained them through the use

Fiscal 2019

Fiscal 2020

Fiscal 2021

425

673

748

Agency as an opportunity to further strengthen ourof simulated internal auditing exercises, etc. As a result,

425

572

646

compliance system by taking steps to train compliance

we trained 21 compliance leaders in fiscal 2020 and 24

0

101

102

leaders who will be in charge of inspecting our in-housecompliance leaders in fiscal 2021. We will continue striving

procurement business and handing compliance-related

to build high-quality compliance systems.

Ratings

A
580
companies(78%)

RatingDescription

A

The business partner considers CSR as an organizational challenge
and takes specific actions.

B

The business partner considers CSR as an organizational challenge
and is planning specific actions.

C

The business partner considers CSR as an organizational challenge.

DThe business partner should consider CSR as an organizational
challenge and should work on improvements.

Declaration of Partnership Building web portal
https://www.biz-partnership.jp(Japanese only)

Compliance leader training

Fuji Electric Report 202256

Consolidated Financial and Non-Financial Highlights
Financial Highlights
Millions of yen

Fiscal year

2013

2014

2015

2016

2017

2018

2019

2020

2021*92021*9759,911582,223
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
37,763914,915
682,503
232,41259,97240,267

900,604
679,719
220,885
42,51528,793875,927654,020
221,907
48,59541,926910,226
655,821
254,405
74,83558,6607,460,873
5,375,586
2,085,287
613,407480,823

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

33,66943,33830,90634,457
48,20832,31933,56235,89036,19433,75659,32039,969276,693486,236
327,616

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)

54,949(21,448)
33,501(38,172)

46,087(27,621)
18,466
16,91826,931
23,47750,408(39,518)

76,809(22,350)
54,458(42,894)

629,583(183,204)
446,380(351,591)

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
183,465914,744366,546
330,636
130,177
163,507952,659
392,061
352,922
124,850
153,985

996,827
406,002
365,620
153,617217,364

1,051,952
461,254
416,997
140,872
216,205

1,117,112
523,729472,900
117,041
208,391

9,156,663
4,292,868
3,876,235
959,353
1,708,130

4.4
23.4
9.3
2.5
28.0
0.9
1.0

4.8
25.3
10.8
3.3
32.1
0.7
0.8

5.5
26.5
11.8
3.5
27.3
0.8
1.0

5.3
24.5
15.7
4.7
32.8
0.5
0.6

6.3
24.5
12.1
4.2
36.1
0.4
0.5

6.6
25.4
11.8
4.3
37.0
0.4
0.4

4.7
24.5
8.0
3.0
36.7
0.4
0.6

5.5
25.3
10.7
4.1
39.6
0.3
0.5

8.2
27.9
13.2
5.4
42.3
0.2
0.4

—
—
—
—
—
—
—
Yen

Basic Information

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*4
Total net assets
EquityNet interest-bearing debt
Interest-bearing debt
Financial Indicators
Ratio of operating income to net sales (%)
Ratio of overseas sales to net sales (%)
ROE (Return on equity) (%)
ROA (Return on assets) (%)*4
Equity ratio (%)*4
Net debt-equity ratio (times)*5
Debt-equity ratio (times)*6
Per Share Data*7
Net income
Net assets
Cash dividends
Dividend payout ratio (%)

Thousands of
U.S. dollars*1

U.S. dollars*1

137.03
1,589.79
35.00
25.5

195.802,031.97
45.00
23.0

214.481,612.59
50.00
23.3

286.82
2,038.40
55.00
19.2

264.342,314.50
70.00
26.5

281.892,470.65
80.00
28.4

201.572,559.60
80.00
39.7

293.52
2,919.34
85.00
29.0

410.683,310.80
100.00
24.3

2013

2014

2015

2016

2017

2018

2019

2020

2021

25,52418,022
7,502

25,74017,814
7,926

26,50817,635
8,873

26,503
17,716
8,787

27,00917,7049,305

27,416
17,647
9,769

27,96017,681
10,27927,593
17,647
9,946

26,757
17,493
9,264

—
—
—

53.6

53.8

51.9

46.7

48.4

52.1

45.6

43.7

36.4

—

601

1,043

1,598

2,230

2,579

3,162

3,651

4,127

4,544

—

3.366
27.1380.820

Non-Financial Highlights
Fiscal year

Employees
Japan
Overseas
Total greenhouse gas emissions fromproduction activities (10,000 t-CO2)
Reductions in CO2 emissions throughproducts (10,000 t-CO2)*8*1 The U.S. dollar amounts represent the arithmetic results of translating yen into dollars at ¥122 = U.S. $1, the approximate exchange rate at March 31, 2022.
*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	Effective April 1, 2018, the Company have adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, revised on February 16, 2018).
As such, major management indicators in consolidated accounting period as of March 31, 2018 have been adjusted to retroactively apply said accounting standards.
*5	Net debt-equity ratio is the ratio of net interest-bearing debt (interest-bearing debt + lease obligations – cash and cash equivalents) to equity.
*6 Debt-equity ratio is the ratio of interest-bearing debt to equity.

Detailed financial information is available on our website.
https://www.fujielectric.com/ir/library/financial_results/index.html

57

Fuji Electric Report 2022

2021

*7	Effective October 1, 2018, the Company conducted a 1-for-5 common stock consolidation. Amounts for net income per share and net assets per share have been calculated assumingthat the stock consolidation took place on April 1, 2012. The amount of dividend ¥48 per share for the year ended March 31, 2019 is total of the interim dividend of ¥8 per share andthe year-end dividend of ¥40 per share. Since the Company conducted a 1-for-5 common stock consolidation effective October 1, 2018, the interim dividend of ¥8 does not reflect
stock consolidation effect and the annual dividend of ¥40 reflects stock consolidation effect. If the stock consolidation effect is also considered to the interim dividend per share, theinterim dividend of ¥8 per share without the effect is equivalent to ¥40 per share with the stock consolidation effect. Accordingly, the annual dividend for fiscal 2018 amounted to ¥80
per share, including adjusted interim dividend of ¥40 per share and year-end dividend ¥40 per share.
*8	The contributions to CO2 emission reductions refers to CO2 emission reductions from products shipped in and after fiscal 2009 that were in operation for a year. Calculated based on
the Ministry of Economy, Trade and Industry’s Guideline for Quantifying Greenhouse Gas Emission Reduction Contribution.
*9	From the beginning of the current fiscal year, the company applied the “Accounting Standard for Revenue Recognition” (Accounting Standard Board of Japan (“ASBJ”) statement No.
29 issued on March 31, 2020), etc. The figures for the current fiscal year in the “Consolidated Financial Highlights” reflect the application of the accounting standards.

Fuji Electric Report 2022

58

Corporate Data

History
Fuji Electric continues to evolve in step with the times and with society, with technology as our driving force.

Company

Company Information (As of March 31, 2022)
Company Name

FUJI ELECTRIC CO., LTD.

Established

August 29, 1923

Consolidated Subsidiary

71 (Japan 21, Overseas 50)

Equity Method Affiliate

4

Head Office

1-1, Tanabeshinden, Kawasaki-ku, Kawasaki-shi, Kanagawa 210-9530, Japan

Head Office Business Address	Gate City Ohsaki, East Tower, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Capital Stock¥47.6 billion

Employees (Consolidated)

26,757 (Japan 17,493, Overseas 9,264)

Net Sales (Consolidated)¥910.2 billion (Year ended March 31, 2022)

Stock Code6504

Technology

1923 F uji Electric Manufacturing Co., Ltd., establishedEstablished as a capital andtechnology alliance between Japanbased Furukawa Electric Co., Ltd.
and German-based Siemens AG.
The result was a company with
Company emblem,
characteristics inherited from industry “FS” markin both countries.

1920

1937 Began manufacturing watt-hour meters
1954	Began manufacturing ultra-compact magnetic
switches (Photo 5)

1935 E stablished Fuji Tsushinki Manufacturing Co., Ltd.
(Present: FUJITSU LIMITED)by spinning off the Telephone Department

1959 Began manufacturing silicon diodes
1965 E lectric propulsion system fitted to Antarctic exploration
ship Fuji

1942 Began operation of the Matsumoto Factory

37,567

1966 S upplied nuclear pressure vessels andother equipment to the Tokai Nuclear Power Plant

1961 Began operation of the Chiba Factory

1966 Released medium and large capacity UPSs (200 kVA)

1968 B egan operation of the Kobe Factory andSuzuka Factory

1969 Released vending machines (Photo 6)

1970 E stablished Fuji Electric Co., Ltd., USA(Present: Fuji Electric Corp. of America)

1973 Released open showcases
1974 Released installation-type ultrasonic flowmeters
1975 Began manufacturing bipolar transistors

1984 Changed company name to Fuji Electric Co., Ltd.
Voting rights(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

25,632

17.95

Custody Bank of Japan, Ltd. (Trust Account)

16,152

11.31

Asahi Mutual Life Insurance Company

3,955

2.77

National Mutual Insurance Federation of Agricultural Cooperatives

3,059

2.14

GOVERNMENT OF NORWAY

2,723

1.91

FANUC CORPORATION

2,684

1.88

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

2,601

1.82

1999 E stablished Fuji Electric (Shanghai) Co., Ltd.
(Present: Fuji Electric (China) Co., Ltd.)STATE STREET BANK AND TRUST COMPANY 505001

2,235

1.57

FURUKAWA CO., LTD.

2,205

1.54

STATE STREET BANK WEST CLIENT - TREATY 505234

2,055

1.44

Notes: 1. Treasury stock of 6,461,058 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 Type
Number of shares

Holding (%)

Financial institutions/Securities firms

Type

138

66,712,843

44.69

Other corporations in Japan

426

9,725,063

6.51

Foreign corporations

758

51,846,961

34.73

Individuals and others

36,24521,012,124

Total

37,567

149,296,991

Note: “Individuals and others” includes treasury stock.

Number of shareholders

Photo 7

1976	Began manufacturing general-purpose inverters (Photo 7)

1987 E stablished Fuji Electric Gesellschaft mit beschränkter
Haftung (Present: Fuji Electric Europe GmbH)

Number of shares(1,000s)

Shareholders’ name

Photo 6

1970 Released cup-type coffee vending machines1973 Began operation of the Otawara Factory

Major Shareholders

Photo 5

1976 Released hot & cold vending machines

1989 E stablished Singapore Fuji Electric Co., Ltd.
(Present: Fuji Electric Asia Pacific Pte. Ltd.)1977 R eceived an order for our first full-scale geothermal power
generation facility

1991 Began operation of the Yamanashi Factory

1980 Released the programmable logic controller “MICREX-P”

1995 Established Fuji Electric (Thailand) Co., Ltd.

1988 Supplied world’s first EIC integrated control system to a steel company

1995 Established Fuji Electric Philippines, Inc.

1988 Began manufacturing 1st-generation IGBTs (Photo 8)

1996 Established Fuji Electric (Malaysia) Sdn. Bhd.

1997 S upplied the world’s first large-capacity flat IGBT
equipped main converters for Shinkansen trains

2002 Introduced our corporate symbol
mark (Photo 1)

Photo 81997 Expansion of 4th-generation IGBT product lineup

2000
Photo 1

2003 C hanged company name to Fuji Electric Holdings Co.,
Ltd., owing to shift to pure holding company system
2003 E stablished Dalian Fuji Bingshan Vending MachineCo., Ltd.

1998 Supplied 100 kW phosphoric acid fuel cells
2002 Supplied environmental radiation monitoring systems
2010 D evelopment of SiC modules of next-generation power
semiconductors (Photo 9)
2011 Released hybrid heat pump vending machines

Photo 92012 Released power conditioning systems for mega solar

2008 F uji Electric FA Components & Systems Co., Ltd.,
merged operations with Schneider Electric Japan Ltd.
(power distribution and control equipment joint venture)2012 Released coffee machines for convenience stores2016 B egan shipping direct water-cooled power modules for automotive
applications (built-in RC-IGBT)2008 E stablished METAWATER Co., Ltd. as a joint venturewith NGK Insulators, Ltd.

2017 Supplied SiC-equipped main converters for Shinkansen trains

2009 Established Fuji Electric India Private Ltd.

2018 Began shipping 7th-generation RC-IGBTs for industrial equipment

14.07

2010 E stablished Fuji Electric Power Supply (Thailand) Co., Ltd.
(Present: Fuji Electric Manufacturing (Thailand) Co., Ltd.)2018 Supplied exhaust gas cleaning systems for ships

100.002010 Began operation of the Tsukuba Factory

2017 Delivered one of Japan’s largest geothermal binary plants

2019 Released on-site diagnostic system that uses analytics and AI (Photo 10)2021 Released 7500WX Series large-capacity UPS

2011 Changed company name to Fuji Electric Co., Ltd.
2011 Established PT. Fuji Electric Indonesia
2013 E stablished Fuji Electric Vietnam
Co., Ltd.
2014 C reated new corporate brand emblem
for products (Photo 2)

59

Fuji Electric Report 2022

Photo 10
Photo 2

Fuji Electric Report 2022

60

Basic Information

Number of Shareholders

Photo 4

1955 Full-scale entry into thermal power generation business1944 Began operation of the Mie Factory

149,296,991

Photo 31936 B uilt first hydraulic turbine,
4,850 HP Francis turbine (Photo 4)

1943 B egan operation of the Fukiage Factory andTokyo Factory

Issued and Outstanding Shares

1925 Began manufacturing transformers
1930 Began manufacturing mercury-vapor rectifiers

1925 Began operation of the Kawasaki Factory

Stock Information (As of March 31, 2022)

1924 Began manufacturing electric motors (Photo 3)

This mark symbolizes
the commitment of Fuji Electric
to environmental protection

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

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

We have received the following certifications as a company exhibiting
excellence in health and productivity management.

Based on the universal design (UD) concept,
we have adopted fonts that are easy to read (and difficult to misread)by more and more people.

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

00A9-E-0002d Published in Japan 2022.9