Fuji Electric Report Financials

2022

Contents
Consolidated Financial Highlights....................................................02
Management’s Discussion and Analysis..........................................03
Consolidated Balance Sheets..........................................................11
Consolidated Statements of Income................................................13
Consolidated Statements of Comprehensive Income.......................14
Consolidated Statements of Changes in Net Assets........................15
Consolidated Statements of Cash Flows.........................................16
Notes to the Consolidated Financial Statements..............................17
Independent Auditor’s Report..........................................................45

01

Fuji Electric Report Financials 2022

Consolidated Financial Highlights
Thousands of
U.S. dollars*1

Millions of yen

Years ended March 31

2018

2019

2020

2021

2022*92022*9Operating Results
Net sales
Japan
Overseas
Operating income
Net Income Attributable to Owners of Parent¥ 893,451
674,744
218,707
55,962
37,763¥ 914,915
682,503
232,41259,97240,267¥ 900,604
679,719
220,885
42,51528,793¥ 875,927
654,020
221,907
48,59541,926¥ 910,226
655,821
254,405
74,83558,660$ 7,460,873
5,375,586
2,085,287
613,407480,823

R&D and Capital Investment
R&D expenditures
Plant and equipment investment*2
Depreciation and amortization*3¥ 35,620
26,46530,151¥ 33,669
43,33830,906¥ 34,457
48,20832,319¥33,56235,89036,194¥33,75659,32039,969$276,693486,236
327,616

Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flow
Cash flows from financing activities¥ 53,146(14,550)
38,596(46,887)¥ 54,949(21,448)
33,501(38,172)¥ 46,087(27,621)
18,466
16,918¥26,931
23,47750,408(39,518)¥

76,809(22,350)
54,458(42,894)$

629,583(183,204)
446,380(351,591)

Financial Position
Total assets*4
Total net assets
EquityNet interest-bearing debt
Interest-bearing debt

¥ 914,744
366,546
330,636
130,177
163,507¥ 952,659
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

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

—
—
—
—
—
—
—

¥ 264.34
2,314.50
70.00
26.5

¥ 281.89
2,470.65
80.00
28.4

¥ 201.57
2,559.60
80.00
39.70

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

—
—
—

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 (%)
OthersEmployees
Japan
Overseas

Yen

U.S. dollars*1¥

293.52
2,919.34
85.00
29.00

¥

410.683,310.80
100.00
24.30

$

3.366
27.1380.820—

Total shareholder return (%)(Comparative indicator:
TOPIX including dividends)

111.7

99.6

81.1

149.0

198.94—(115.9)(99.6)(141.5)(144.34)—

Highest stock price (Yen)*8

955

3,950

4,860

6,500

—

Lowest stock price (Yen)*8559(110.0)
4,760
(942)
2,982
(697)

1,960

2,197

4,370

—

*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 E
 ffective 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.
*7 Effective October 1, 2018, the Company conducted an 1-for-5 common stock consolidation. Amounts for net income per share and net assets per share have been calculated
assuming that the stock consolidation took place on April 1, 2017. The amount of dividend ¥48 per share for the year ended March 31, 2019 is total of the interim dividend of ¥8 pershare and the year-end dividend of ¥40 per share. Since the Company conducted an 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, the interim 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 highest and lowest stock prices are on the Tokyo Stock Exchange (First Section). The Company conducted an 1-for-5 common stock consolidation effective October 1, 2018. The
stock price in fiscal 2018 is the highest and lowest stock price after the stock consolidation and the highest and lowest stock prices before the stock consolidation are in parentheses.
*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 Financials 2022

02

Management’s Discussion and Analysis
Overview

Financial Performance
Net Sales
Net sales in fiscal 2021 increased by 3.9%, to ¥910,226 million.
In the Power Electronics Energy, Semiconductors,
and Food and Beverage Distribution segments, net sales
increased. However, in the Power Electronics Industry andPower Generation segments, net sales decreased. Domestic
sales increased by 0.3%, to ¥655,821 million. Overseas sales
increased by 14.6%, to ¥254,405 million.
The ratio of overseas sales increased by 2.6 percentage
points, to 27.9%.

In fiscal 2019, we launched a five-year Medium-Term
Management Plan called “Reiwa Prosperity 2023.” The final
year of the plan is fiscal 2023, when we will celebrate the100th anniversary of our founding. Under the plan, we arepromoting various growth strategies. These include focusing
resources on growth fields—namely, power electronics
systems and power semiconductors—while expanding ouroverseas business.
In fiscal 2021, the market environment surrounding theCompany benefited from the trends of global initiatives toward
decarbonization and the recovery of economic activity.
Demand for machine tool-related products remained high as
plant and equipment investment in the manufacturing sector
continued to pick up, and growth in the electrification of
automobiles and the need for energy saving led to significant
expansion in demand. On the other hand, the future outlook
remained uncertain as the global supply chain suffered mainly
from soaring material prices and material shortages due tothe impact of the COVID-19 pandemic and changes in theinternational political situation.

Net Sales /Ratio of Overseas Sales to Net Sales(Billions of yen)
1,000.0

750.0

893.5

24.5

(%)

914.9 900.6
875.9

25.4

24.5

25.3

910.2

40

Cost of Sales, Selling, General and
Administrative Expenses and Operating Income
Cost of sales increased by 0.5 percentage points, to ¥657,790
million. The ratio of cost of sales to net sales decreased by 2.4
percentage points, to 72.3%.
Selling, general and administrative expenses increasedby 2.9%, to ¥177,601 million. The ratio of selling, generaland administrative expenses to net sales decreased by 0.2
percentage point, to 19.5%.
Operating income increased by ¥26,240 million, to ¥74,835
million, primarily due to higher sales and production volumes,
increase in product sales price, and strengthening theconstitution of factories mainly by cost reduction, while being
affected by soaring material prices. The operating marginincreased by 2.7 percentage points, to 8.2%.

Operating Income /Ratio of Operating Income to Net Sales

Net Income Attributable to Owners of
Parent / Ratio of Net Income Attributableto Owners of Parent to Net Sales(Billions of yen)(Billions of yen)

(%)

74.8

80.0

10

8.2
27.9

30

60.0 56.0

6.3
500.0

20

60.0
6.6

40.0

8

48.6
42.5

(%)

58.7

60.0

6.4

50.0

40.0

37.8

30.0

4.7

4.2

41.9

40.3

6

5.5

8

4.4

28.8

6

4.8
4

3.2

4
20.0
250.0

0

10

18/3

19/3

20/3

21/3

22/3

Net Sales (left)
Ratio of Overseas Sales to Net Sales (right)

03

Fuji Electric Report Financials 2022

0

20.0

0

2

18/3

19/3

20/3

21/3

22/3

Operating Income (left)
Ratio of Operating Income to Net Sales (right)

0

2
10.0

0

18/3

19/3

20/3

21/3

22/3

Net Income Attributable to Owners of Parent (left)
Ratio of Net Income Attributable to Owners of
Parent to Net Sales (right)

0Non-Operating Income (Expenses) and
Ordinary Income
Non-operating income (net) was ¥4,462 million, a ¥2,656
million increase from ¥1,806 million in the previous fiscal
year. This increase was primarily due to a ¥1,288 million
foreign exchange gain, which ¥379 million foreign exchange
loss turned into, and a decrease in provision of allowancefor doubtful accounts for investment loss for subsidiaries
and affiliates by ¥442 million. As a result, ordinary income
increased by ¥28,896 million, to ¥79,297 million.
Extraordinary Income (Loss), Income before Income
Taxes and Non-Controlling Interests
Extraordinary income was ¥10,537 million, included gain on
sales of noncurrent assets and gain on sales of investment
securities. This represented a ¥30,607 million decrease due
to a decrease in gain on sales of investment securities.
Extraordinary loss was ¥1,349 million, included loss
on disposal of noncurrent assets, loss on devaluation of
investment securities, factory integration expenses, and loss
on withdrawal from business. This represented a ¥26,913
million decrease due to cost of corrective measures for productdefects and impairment loss in the previous fiscal year.

Results by Business Segment
Power Electronics Energy
Net sales: ¥240,559 million (an increase of 15.0%)
Operating income: ¥21,365 million (an increase of ¥7,347 million)
Net sales and operating income increased primarily due tohigher demand for the ED&C components business and thefacility / power source system business.
• In the energy management business, net sales and operating
income decreased primarily due to large-scale orders forindustrial and railway substation in the previous fiscal year.
• In the facility / power source system business, net sales
and operating income increased due to higher demand fordata centers and semiconductor manufacturers.
• In the ED&C components business, net sales and operating
income increased due to higher demand from domestic andoversea machine set manufacturers.
Orders received in fiscal 2021 (Power Electronics Energy
segment of Fuji Electric Co., Ltd., non-consolidated-basis)
totaled ¥137.5 billion.

Net Income
Income before income taxes increased by ¥25,203 million,to ¥88,487 million. After deducting ¥23,931 million of income
taxes (the net of income taxes-current and income taxesdeferred) and ¥5,896 million of net income attributable tonon-controlling interests, net income attributable to owners ofparent increased by ¥16,734 million, to ¥58,660 million.

Power Electronics Industry
Net sales: ¥314,310 million (a decrease of 9.1%)
Operating income: ¥23,676 million (an increase of ¥1,895 million)
Net sales decreased primarily due to large-scale orders
in the IT solutions business in the previous fiscal year, while
higher demand for factory automation business. However,operating income increased primarily due to higher demand forfactory automation business, changing designs and alternative
materials as a countermeasure for difficulty in procuring
materials, and cost reduction.
• In the factory automation business, net sales and operating
income increased primarily due to higher demand for lowvoltage inverters and FA components.

Net Sales by Segment

Operating Income (Loss) by Segment(Billions of yen)(Billions of yen)

1,000.0

875.9

910.2

52.7
76.6
80.4

800.0

157.5

54.7
90.8

Others

78.6

Power Generation

178.8

Semiconductors

Food and Beverage Distribution

70.0

48.6
2.2
2.5

60.0
50.0

600.0

74.8

80.0

314.3

345.9

OthersFood and Beverage Distribution
Power Generation

27.1

Semiconductors

23.7

Power Electronics Systems Industry

21.4

Power Electronics Systems Energy-6.3

Adjustments

17.7

40.0
400.0

2.8
3.0
3.1

Power Electronics Systems Industry
30.0

21.8

20.0

200.0

0

209.2

240.6

Power Electronics Systems Energy

-46.3

-47.5

Adjustments

10.0

14.0

0

-5.3
-4.3

-10.0
-200.0

21/3

22/3

21/3

22/3

Fuji Electric Report Financials 202204• In the social solutions business, net sales decreased
primarily due to lower demand for the scrubber systems,
while there was higher demand for the large-scale electrical
products for transport systems. However, operating income
increased primarily due to the favorable sales mix.
• In the equipment construction business, net sales andoperating income increased primarily due to higher demandfor electricity and air-conditioning equipment constructions.
• In the IT solutions business, net sales and operating income
decreased due to large-scale orders for the academic sector
and the public sector in the previous fiscal year.
Orders received in fiscal 2021 (Power Electronics Industry
segment of Fuji Electric Co., Ltd., non-consolidated-basis)
totaled ¥166.6 billion.

Power Generation
Net sales: ¥78,563 million (a decrease of 2.2%)
Operating income: ¥3,124 million (an increase of ¥607 million)• In the power generation plant business, net sales decreased
primarily due to large-scale orders for renewable energy
in the previous fiscal year. However, operating income
increased due to the favorable sales mix and cost reduction.
Orders received in fiscal 2021 (Power Generation segmentof Fuji Electric Co., Ltd., non-consolidated-basis) totaled¥81.8 billion.
Food and Beverage Distribution
Net sales: ¥90,783 million (an increase of 18.6%)
Operating income: ¥3,007 million (an increase of ¥8,287 million)• In the vending machine business, net sales increased
primarily due to higher demand in domestic and overseas
market. In addition, operating income increased primarily due
to an increase in sales and a reduction in fixed costs.
• In the store distribution business, net sales and operating
income increased primarily due to higher demand for store
equipment for convenience stores.
Orders received in fiscal 2021 (Food and Beverage
Distribution segment of Fuji Electric Co., Ltd., nonconsolidated-basis) totaled ¥84.3 billion.

Semiconductors
Net sales: ¥178,807 million (an increase of 13.5%)
Operating income: ¥27,136 million (an increase of ¥9,484 million)• In the semiconductors business, net sales increased
primarily due to the acceleration of the increase inproduction capacity in response to higher demand for power
semiconductors for electric vehicles (xEV) and industrial
fields, while withdrawing from the magnetic disks business.
As a result, although costs related to the increase inproduction capacity for power semiconductor and researchand development increased, operating income increased
due to maintaining high operations.
Orders received in fiscal 2021 (Semiconductors segmentof Fuji Electric Co., Ltd., non-consolidated-basis) totaled¥151.9 billion.

Others
Net sales: ¥54,711 million (an increase of 3.8%)
Operating income: ¥2,838 million (an increase of ¥623 million)

R&D Expenditures /Ratio of R&D Expenditures to Net Sales

Plant and Equipment Investment /Depreciation and Amortization

Total Net Assets / ROE(Billions of yen)(Billions of yen)(Billions of yen)

40.0

35.6

(%)
8

33.7

34.5

33.6

59.3

60.0

33.8

48.2

50.0
30.0

40.0

4.0
20.0

3.7

3.8

3.8

3.7

10.0

0

30.9

523.7

35.9 36.2
32.3

40.0

461.3

400.0 366.5

18/3

19/3

20/3

21/3

22/3

Fuji Electric Report Financials 2022

0

30

200.0

10.0

100.0

18/3

40

300.0

20.0

0

50

392.1 406.0

12.1

11.8

2

R&D Expenditures (left)
Ratio of R&D Expenditures to Net Sales (right)

05

4

30.2
30.0 26.5

600.0

500.0

43.3

6

(%)

19/3

20/3

Plant and Equipment Investment
Depreciation and Amortization

21/3

22/3

0

18/3

19/3

Total Net Assets (left)
ROE (right)

8.0

20/3

10.7

13.2

20

10

21/3

22/3

0

consolidated the production functions of switch gears andmolded transformers, which had been dispersed among
multiple bases in Southeast Asia, at Fuji Electric Manufacturing(Thailand) Co., Ltd . and increased production capacity forinverters and measuring instruments at Fuji Electric India
Private Ltd. We are expanding our systems business globally.
As part of our investments for environmental measures
to reduce greenhouse gas emissions, we have installed LED
lighting, high-efficiency air conditioning, and greenhouse gas
removal equipment at our factories.

R&D Investment and Plant andEquipment Investment
R&D
Fuji Electric is engaged in many advanced systems suchas creations of energy, stable supplies, automation, andelectrification of mobility by utilizing core technologies suchas power semiconductors, power electronics, measuring andcontrol, and cooling.
The Company’s R&D expenditures in fiscal 2021 totaled¥33,756 million.
As of March 31, 2022, the number of our industrial property
rights registered in Japan and overseas was 13,353.

Financial Position
Total Assets
As of March 31, 2022, total assets was ¥1,117,112 million, an
increase of ¥65,160 million.

Plant and Equipment Investment
In fiscal 2021, we made capital investments totaling ¥59,320
million, including leases, to increase the production capacity ofsemiconductors and to increase revenues in power electronics
systems. Major investments were as follows.
In the Semiconductors business, in response to theelectrification of automobile s and growing demand forrenewable energy, we made a new large-scale investment infront-end processes at Fuji Electric Tsugaru Semiconductor
Co., Ltd. to increase production capacity for power
semiconductor chips. In back-end processes, we madeinvestments to increase production of high-capacity IGBT
modules in Japan and overseas.
In the Power Electronics Systems business in Japan,
we completed construction of the plant system building at
the Tokyo Factory to strengthen plant system development
and production systems. In response to growing demand in
the datacenter market, we made investments at the Kobe
Factory to increase uninterruptible power system (UPS)
testing capacity and to streamline operations. Overseas, we

Total Assets / ROA(Billions of yen)(%)

1,200.0

914.7

952.7

996.8

1,052.01117.1

5.4

900.0

4.2

6

Equity Ratio

Interest-bearing Debt /Debt-equity Ratio(%)(Billions of yen)
50.0

4.1

(Times)300.0

40.0 36.1

37.0

36.7

39.6

3

42.3
217.4
200.0

4.3

600.0

8

Current Assets and Current Liabilities
Total current assets was ¥681,981 million, an increaseof ¥52,774 million. This increase was primarily due to anincrease of ¥16,018 million in cash and cash equivalentsand ¥37,697 million in notes receivable-trade, accounts
receivable-trade, and contract assets.
Total current liabilities was ¥386,969 million, an increaseof ¥30,553 million. This increase was primarily due toan increase of ¥26,151 million in current portion of longterm debt, partially offset by a decrease of 8,418 million inprovision for product warranties.

30.0

163.5

216.3

208.4
2

154.0

4

3.0

20.0
100.0
300.0

0

2

18/3

19/3

Total Assets (left)
ROA (right)

20/3

21/3

22/3

0

10.0

0

1

0.5

18/3

19/3

20/3

21/3

22/3

0

18/3

0.4

19/3

0.6

20/3

0.5

0.4

21/3

22/3

0

Interest-bearing Debt (left)
Debt-equity Ratio (right)

Fuji Electric Report Financials 202206

Noncurrent Assets
Total noncurrent assets was ¥435,131 million, an increaseof ¥12,386 million. Net property, plant and equipment
was ¥233,675 million, an increase of ¥23,917 million. Total
investments and other assets was ¥201,456 million, adecrease of ¥11,531 million. This decrease was primarily due
to a decrease of ¥9,966 million in investment securities mainly
due to sales.

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥76,809
million, compared with ¥26,931 million in the previous fiscal
year. Major factors of cash decrease included an increase ininventories and a decrease in trade payables. Major factors of
the cash increase included income before income taxes andan increase in contract liabilities. Cash flows from operating
activities increased by ¥49,878 million.

Long-term Liabilities
Total long-term liabilities was ¥206,414 million, a decreaseof ¥27,868 million. This decrease was primarily due to adecrease of ¥30,410 million in long-term debt.

Cash Flows from Investing Activities
Net cash used in investing activities was ¥22,350 million,
compared with net cash provided by investing activities of¥23,477 million in the previous fiscal year. This was primarily
due to purchases of property, plant and equipment offset
by sales of investment securities. Net cash used in investing
activities increased by ¥45,827 million.

Net Assets
As of March 31, 2022, net assets was ¥523,729 million, an
increase of ¥62,475 million. This increase was primarily due
to an increase of ¥47,513 million in retained earnings and¥12,628 million in foreign currency translation adjustments.
As a result, the equity ratio was 42.3%, an increase of 2.7
percentage points.
Debt
As of March 31, 2022, interest-bearing debt was ¥208,391
million, a decrease of ¥7,814 million. The ratio of interestbearing debt to total assets was 18.7%, a decrease of 1.9
percentage-points.

Cash Flows from Financing Activities
Net cash used in financing activities was ¥42,894 million,
compared with net cash used in financing activities of ¥39,518
million in the previous fiscal year. This was primarily due
to repayments of lease obligations and payments of cash
dividends paid. Net cash used in financing activities increasedby ¥3,376 million.

Cash Flow
Consolidated free cash flow (net cash provided by (used in)operating activities + net cash provided by (used in) investing
activities) was a positive ¥54,458 million, a ¥4,050 million
increase from the previous fiscal year’s positive free cash flowof ¥50,408 million.

Cash Flows

Free Cash Flow /Cash and Cash Equivalents(Billions of yen)(Billions of yen)

76.8

80.0
60.0 53.1

54.9

46.1

40.0

63.7
60.0

0

-40.0

75.3

80.0

26.9 23.5
16.9

20.0

-20.0

91.4

100.0

-14.6

-21.4

-46.9

-38.2

-22.4

-27.6

-39.5

-42.9

40.0

50.4

54.5

38.6
33.5
33.3
29.1
18.5

20.0

-60.0
-80.0

18/3

19/3

20/3

21/3

22/3

Cash Flows from Operating Activities
Cash Flows from (Used in) Investing Activities
Cash Flows from (Used in) Financing Activities

07

Fuji Electric Report Financials 2022

0

18/3

19/3

20/3

Free Cash Flow
Cash and Cash Equivalents

21/3

22/3

Risk Factors
Fuji Electric manages business and other risks in acoordinated, systematic manner and takes appropriate
measures to minimize the impact of such risks. The following
factors were judged to have a potential future effect on Fuji
Electric’s business performance and financial position. Any
forward-looking statements in the following are based on the
judgment of management as of the date of submitting thesecurities report (June 28, 2022).
(1) M anagement Strategies, Business Strategies, andOperating Environment
Fuji Electric works to swiftly concentrate management
resources on businesses earmarked for growth while making
capital and R&D investments aimed at expanding anddeveloping its businesses. With respect to semiconductorrelated capital investments, which require large amountsof money, we make decisions based on negotiations
with customers regarding physical quantities and pricing.
Regarding R&D investments, we emphasize consistency withour business strategies and contribution to our businesses.
Based on our roadmap, we pursue R&D on fundamental andadvanced technologies that support Fuji Electric’s future. Here,the management engages in regular deliberations about key
development themes and constantly reviews the roadmap
according to market changes. However, the semiconductor
field is characterized by short product cycles, major
fluctuations in product supply/demand levels, and intensecompetition. In some cases, therefore, we may be unable
to recover our investment, which may affect its businessperformance and financial position.
Fuji Electric is contributing to realize a sustainable society
through our energy and environment related businesses,
considering protection of the global environment to be
an important management priority. Also, we promote ourEnvironmental Vision 2050, which aims to realize a low-carbon
society, recycling-oriented society, and a society in harmony
with nature, across the supply chain. Further, we announced
its support for the recommendations of the TCFD, Task
Force on Climate-related Financial Disclosures, and conduct
climate change risk analysis from a long-term perspective.
However, stricter enforcement of the Paris Agreement andother environmental regulations, as well as assessments by
ESG evaluation institutions may lead to stronger criticism ofpart of Fuji Electric’s operations (coal-fired power generation
business), which may affect its business performance andfinancial position.
Fuji Electric has business bases around the world andprovides products and services to markets and customers in
multiple regions. The spread of COVID-19 in many countries
has led to emergency declarations, lockdowns, and otherrestrictions on economic activities. These have had various
effects on Fuji Electric’s business activities, including
restrictions on sales activities, factory operation suspensions,and limitations on construction site visits. If these restrictions
are tightened, it could increase the impact on Fuji Electric’s
business activities, which may affect its business performanceand financial position.
(2) Corporate GovernanceFuji Electric is working to strengthen its corporate governanceby improving management transparency and auditing
functions during normal times. However, an unprecedented
event may lead to deficiencies in our internal control andaudit functions, resulting in corporate governance breakdown
and business disruption, etc., which may affect our businessperformance and financial position.
(3) Business Reorganizations, Alliances, andWithdrawals
Fuji Electric actively engages in M&As, joint ventures, businessalliances, and the like with third parties in order to strengthen
its competitiveness in each business field. As part of these
activities, we share our corporate philosophy, management
policy, code of conduct, business plans, business strategies,
and so on to facilitate integration of our business strategies,
technologies, products, and human resources. Throughmanagement meetings and other forums, we strive tomaintain close communication with partners and build good
relationships with them. Due to differences in systems andcultures, however, we may be unable to achieve the desired
outcomes, which may affect our business performance andfinancial position.
(4) Orders, Marketing, and Sales Promotion
Fuji Electric is developing operations actively in overseas
markets, focusing particularly on expanding sales in China
and other Asian markets. We have sales offices in various
markets to better understand customer trends and centrally
manage the information we collects for analysis andconsideration and otherwise strive not to miss business
opportunities. We also work to reduce costs and expenses
in order to minimize the impact of domestic and overseas
trends on our business performance. However, any numberof events may affect our business performance and financial
position. These include deteriorating market conditions ineach country —including private capital investments andpublic expenditures— as well as sudden changes in supply
and demand of products, intensifying competition, and theresultant significant falls in prices.
Fuji Electric receives orders for large-scale plant projects
in the power electronics field and the power generation field,
etc. In order to secure appropriate profits in each project, wework to improve the accuracy of our quotations at the time oforder receipt and strengthen project management afterwards.
After receipt of orders, however, any number of events may
affect our business performance and financial position. These
include unanticipated specification changes, process delays,
and profitability declines due to natural disasters and the like.

Fuji Electric Report Financials 202208

(5) Development and Design Engineering
Fuji Electric has established an R&D system to accelerate
research and development and constantly monitors market,
customer needs and the latest technological trends. At
the same time, we conduct R&D aimed at creating strong
components and systems, focused on power electronics
and power semiconductor technologies, and R&D to develop
solutions that generate customer value through combinationsof elemental technologies.
Due to rapid technological advances, however, we may
lose our advantage over other companies, and productdevelopment may not proceed as planned, making it
impossible to launch new product at the right time. Any ofthese events may affect our business performance andfinancial position.
(6) Procurement
Fuji Electric deploys various means, including product swaps,
to reduce the risk of rising raw material prices. However, in
addition to increasing raw material and components prices
against the background of a weak yen, such changes as thedrastically increasing demand in emerging nations may resultin tightened supply and demand as regards materials andraw materials and significant increases in their prices. Anyof these events may affect our business performance andfinancial position.
(7) P roduction, Manufacturing, Shipping, Logistics,
Installation, Delivery, and Service
Fuji Electric always keeps track of the latest physical quantity
flows by sharing information between its sales and businessdepartments at management meetings and other forums. We
have also built an optimal production management system thatcan respond to changes in physical quantity flows by suchas improving productivity and promoting local production for
local consumption. However, an unprecedented event could
result in increased/decreased demand and other changes
in physical quantity flows, leading to delayed responses andinventory shortages/surpluses, which may affect our businessperformance and financial position.
Through reforms of its supply chain, Fuji Electric works topromote “completely localized” manufacturing through local
production for local consumption while also emphasizing
global procurement. However, an unprecedented event could
result in restrictions on human and commodity movements
and disruptions to our distribution network. This could
prevent our supply chain from functioning and cause delays
in deliveries, which may affect our business performance andfinancial position.

09

Fuji Electric Report Financials 2022

(8) Quality Assurance
Fuji Electric has established a quality control system for the
products it manufactures and sells and strives to ensure highquality standards. Although we have made the necessary
insurance arrangements, an unprecedented event could cause
quality-related problems in our products to arise and spread,which may affect our business performance and financial
position.
(9) Human Resources and Labor
The business activities of Fuji Electric depend heavily on its
human resources. To attract and develop excellent humanresources in various fields —such as technology, production,
sales, and business management— we focus on cultivating
professional human resources who will help strengthen our
global competitiveness. We also actively conduct employee
education and training and are expanding mid-career
recruitment and other measures to attract exceptional humanresources. However, failure to attract and develop suchimportant human resources may have an impact on ourbusiness performance and financial position.
(10) Finance and Accounting
Seeking to minimize fund-raising costs, Fuji Electric
constantly examines the optimal mix of corporate bonds,
commercial paper, and short-term and long-term borrowings,
in order to ensure flexible and stable financing arrangements.
However, an unexpected increase in interest rates could
raise the interest rate burden on our interest-bearing debt,
which may have an impact on our business performance andfinancial position.
Fuji Electric works to strengthen credit management,
including by monitoring long-overdue receivables and thefinancial status of business partners, in order to enhance
its collection of trade receivables. However, restrictions on
economic activities and economic downturn could cause
business partners’ cash flows to deteriorate and prevent us
from recovering debts, which may have an impact on ourbusiness performance and financial position.

(11) Legal and EthicalFuji Electric engages in business in various fields and regions,and as such is subject to the laws and regulations of eachcountry. The Fuji Electric Compliance Promotion Committee,
chaired by our representative director, spearheads efforts
to ensure rigorous compliance with laws and regulations.
We also have a compliance program that clearly identifies
roles and responsibilities covering each aspect of legal
regulations —namely, internal rules, monitoring, auditing,and education— and our compliance structure also includes
a whistleblowing system. However, any occurrence of legal
violations and the like may have an impact on our businessperformance and financial position.
In preparation for lawsuits and other legal disputes, Fuji
Electric has formed a task force aimed at building a system
to ensure that necessary procedures (fact investigation,corrective action, recurrence prevention, internal write-down,
and disclosure) and are conducted promptly. However,
we may be ordered to pay unexpectedly large amounts ofdamages, which, depending on the nature of the decision,
may have an impact on our business performance andfinancial position.
Fuji Electric strives to effectively protect intellectual
property rights and develop products and technologies that
respect the rights of other companies. Due to the speed oftechnological innovation and the global expansion of ourbusiness activities, however, intellectual property disputes
could arise, which may have an impact on our businessperformance and financial position.
(12) Political and Socioeconomic Trends
Fuji Electric engages in currency exchange contracts, basedon certain criteria, to minimize the impact of foreign exchange
fluctuations. However, any changes in exchange rates,
primarily between the yen and the U.S. dollar, may have an
impact on our business performance and financial position.
Fuji Electric develops its business in many overseas
markets, mainly in China and other Asian markets, and always
closely monitors the latest information on geopolitical risks.
We are also diversifying our production and sales bases in
preparation for unexpected risks.
However, any of the following events may have an impact
on our business performance and financial position:- Unexpected enactment of laws/regulations and changes intax systems with adverse effects- Disadvantageous political situations- Social turmoil due to social upheaval, terrorism, war, andthe like(13) Trends of Shareholder and Other Investors
Fuji Electric attaches great importance to disclosure offinancial information, active disclosure of non-financial
information, and communication with shareholders andinstitutional investors. We also strive to foster understandingof our management through sincere and accurate disclosureof information according to our Disclosure Policy. However,

the intentions of stockholders and other investors may differ
from those of the Company’s management, which could resultin a vote against the election of directors. Also, a shareholder
proposal against management could cause disruption of ouroperations. These and other events may have an impact on
our business performance and financial position.
(14) Natural Disasters and Accidents
Fuji Electric has business bases all over the world and iscommitted to fulfilling its responsibilities to customers andsociety by continuously supplying products and services inthe event of disaster or accident. To this end, we establisheda dedicated crisis management team to spearhead fire anddisaster prevention efforts, formulation of a business continuity
plan (BCP), and adoption of necessary insurance arrangements
in order to “strengthen our business continuity capability.”
However, any number of events may have an impact on ourbusiness performance and financial position. These include
large-scale disasters or accidents at/near our businesssites, which could cause damage of production equipment,interruption of operations, and delays in product shipments.
(15) External Attacks
To address increasingly diversified and sophisticated cybersecurity threats, Fuji Electric established a countermeasuresystem and a security response organization (CSIRT/SOC) tomonitor and suppress any attacks. We are also continuously
strengthening our response capabilities —in such areas asdefense, detection system reinforcement, and cyber training—
to prepare for the emergence of new threats. However, any
number of events may have an impact on our businessperformance and financial position. These include system
malfunction and information leakage due to external attacks(such as cyber-terrorism), resulting in loss of social trust.
(16) Individual Event (Impact of COVID-19)
Fuji Electric has established a set of “Contingency Plan” toimplement in times of emergency resulting from various risks
that may affect its operations. Based on these procedures,
we set up the “New Coronavirus Infection Prevention
and Business Continuity Promotion Countermeasures
Headquarters,” chaired by the president COO, to address
the COVID-19 pandemic. The stated policy is to “take prompt
and appropriate measures with top priority on respecting
human life, preventing the spread of infections, and minimizing
damage.” Under this policy, we are collecting and aggregating
information related to COVID-19 and taking measures toprevent the spread of infections (for example, enforcing rules,
such as hand washing and hand sanitizing; avoiding confined
spaces, large gatherings, and close interactions; and asking
employees to work from home and staggered work hours),
while also emphasizing business continuity. However, we may
be forced to suspend various business activities, including
production and sales, if infections occur in the workplace oramong customers and business partners, which may have an
impact on our business performance and financial position.

Fuji Electric Report Financials 202210

Consolidated Balance Sheets
As of March 31, 2022 and 2021

Thousands of
U.S. dollars(Note 3)

Millions of yen

2021

2022

AssetsCurrent Assets:
Cash and cash equivalents (Note 6)
Short-term investments (Notes 5, 6 and 7)
Trade receivables (Note 6)
Notes receivable-trade (Note 6)
Accounts receivable-trade (Note 6)
Contract assets
Allowance for doubtful accounts
Inventories (Note 4)
Other current assets
Total Current Assets

75,332
1,213
319,644———(3,897)
183,190
53,725629,207$ 748,776
13,243—
619,030
1,784,686
525,315(41,978)
1,395,862
545,0825,590,016

Less accumulated depreciation
Net Property, Plant and Equipment

35,695275,247
201,219
95,027
8,635
2,432
618,255(384,580)
233,675

35,537259,147
220,735
107,292
3,932
1,697
628,340(418,582)
209,758

292,587
2,256,126
1,649,340
778,91370,763
19,9385,067,667(3,152,293)
1,915,374

Investments and Other Assets:
Investment securities (Notes 5, 6 and 7):
Unconsolidated subsidiaries and affiliates
Other
Long-term loans receivable
Net defined benefit asset (Note 2 and 11)
Deferred tax assets (Note 16)
Other investments and other assets (Note 20)
Allowance for doubtful accounts
Total Investments and Other Assets
Total Assets

22,554
103,761817
22,516
13,28638,990(468)
201,456¥ 1,117,112

19,775116,506655
21,043
14,68240,787(461)
212,987¥ 1,051,952

184,876
850,504
6,703
184,560
108,905
319,565(3,840)1,651,273$ 9,156,663

Property, Plant and Equipment (Note 5):Land
Buildings and structures
Machinery and equipment
Lease assets (Note 20)
Construction in progress
Others

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

11

Fuji Electric Report Financials 2022¥

91,3501,615—
75,521
217,73164,088(5,121)
170,295
66,502681,981¥2022

Thousands of
U.S. dollars(Note 3)

Millions of yen

2021

2022

Liabilities and Net Assets
Current Liabilities:
Short-term debt (Notes 5, 6 and 9)
Current portion of long-term debt (Notes 5, 6 and 9)
Trade payables (Notes 5 and 6)
Lease obligations (Notes 6 and 10)
Advances received
Contract liabilities
Income taxes payable (Note 16)
Provision for product warranties (Note 2)
Other current liabilities (Note 24)
Total Current Liabilities
Long-term Liabilities:
Long-term debt (Notes 5, 6, and 9)
Lease obligations (Notes 6 and 10)
Net defined benefit liability (Notes 2 and 11)
Provision for directors’ retirement benefits
Deferred tax liabilities (Note 16)
Other long-term liabilities (Note 24)
Total Long-term Liabilities
Total Liabilities

17,601
4,142
167,260
18,37635,239—18,183
15,69879,917356,416$ 120,418
248,303
1,407,782
160,527—
323,305
121,967
59,674
729,908
3,171,884

101,276
40,97857,590
94
1,580
4,896
206,414593,383

131,686
43,22653,322
150
1,678
4,220
234,282590,698

830,138
335,888472,055
775
12,95640,0991,691,911
4,863,795

47,586—45,955319,285—
47,58646,003271,772

390,050—
376,6812,617,096(7,359)—405,467—(7,340)358,021(60,324)—
3,323,503

51,649507
14,1701,107
67,43350,829523,729¥ 1,117,112

55,761
322
1,542
1,351
58,97644,257461,254¥ 1,051,952

423,357
4,159
116,140
9,076
552,732
416,633
4,292,868$ 9,156,663¥

14,69130,293
171,749
19,584—39,443
14,8797,280
89,050386,969¥2022

Contingent Liabilities (Note 19):
Net Assets (Note 25)
Shareholders’ Equity:
Capital stock (Note 12):
Authorized - 320,000,000 shares
Issued - 149,296,991 shares as of March 31, 2022
149,296,991 shares as of March 31, 2021
Capital surplus
Retained earnings
Treasury stock at cost (Note 12) :6,461,058 shares as of March 31, 2022
6,457,667 shares as of March 31, 2021
Total Shareholders’ Equity
Accumulated Other Comprehensive Income (Loss):
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges (Notes 6 and 8)
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive Income
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

Fuji Electric Report Financials 202212

Consolidated Statements of Income
Years ended March 31, 2022 and 2021

Thousands of
U.S. dollars(Note 3)

Millions of yen

2022

2021

2022

Net Sales
Cost of Sales (Note 13)
Gross Profit¥ 910,226
657,790
252,436¥ 875,927
654,661
221,266$ 7,460,873
5,391,718
2,069,155

Selling, General and Administrative Expenses (Notes 13 and 14)
Operating Income

177,601
74,835

172,671
48,595

1,455,748
613,407

2,885(1,744)
(285)
—
1,288
1,647
671
4,462
79,297

2,955(1,441)
(514)
(442)
(379)
1,678
(51)
1,806
50,401

23,650(14,300)(2,336)—
10,563
13,5085,489
36,574649,981

9,190
88,487

12,88363,28475,324725,305

23,93164,556

17,94145,343

196,163
529,142

5,896¥ 58,660

3,417¥ 41,926

48,319$ 480,823

Non-Operating Income (Expenses):
Interest and dividend income
Interest expense
Provision of allowance for doubtful accounts for subsidiaries and affiliates
Provision of allowance for investment loss for subsidiaries and affiliates
Foreign exchange gains (losses)
Equity in earnings of affiliates
Other, net
Ordinary Income
Extraordinary Income, Net (Note 15)
Income Before Income Taxes
Income Taxes (Note 16)
Net Income
Net Income Attributable To Non-controlling Interests
Net Income Attributable To Owners of Parent (Note 25)
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

13

Fuji Electric Report Financials 2022

Consolidated Statements of Comprehensive Income
Years ended March 31, 2022 and 2021

Thousands of
U.S. dollars(Note 3)

Millions of yen

Net Income

2022

2021

2022

¥ 64,556¥ 45,342$ 529,142

Other Comprehensive Income (Loss) (Note 17)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income (loss) of associates accounted forusing equity method
Total Other Comprehensive Income
Comprehensive Income(4,222)
185
13,983(37)

11,400
553
5,938
4,419

(34,615)
1,516
114,639
(310)

20
9,929
¥ 74,485(215)
22,095¥ 67,437

168
81,398$ 610,540

Comprehensive Income Attributable to:
Owners of parent
Non-controlling interests¥ 67,118
7,367¥ 62,796
4,641$ 550,150
60,390

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

Fuji Electric Report Financials 202214

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2022 and 2021

Thousands

Balance at March 31, 2020

Millions of yen

Number ofshares ofcapital stock

Capitalstock

Capitalsurplus149,296¥47,586¥45,949

Retainedearnings

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Treasury
stock

Total

Noncontrollinginterests

Total
net assets¥241,305¥44,606¥(231)¥ (3,544)¥(2,724)¥(7,327)¥365,620¥40,382¥406,002

Cumulative effect of changes
in accounting policies

—

—

—

—

—

—

—

—

—

—

—

—

Restated balance—

47,58645,949241,305

44,606(231)(3,544)(2,724)(7,327)

365,620

40,382406,002

Net income attributable toowners of parent

—

—

—

41,926

—

—

—

—

—

41,926—41,926

Change of scope of
consolidation

—

—

—

(33)

—

—

—

—

—

(33)

—

(33)

Cash dividends

—

—

—

(11,426)

—

—

—

—

—

(11,426)—(11,426)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(13)

(13)

—

(13)

Sales of treasury stock

—

—

1

—

—

—

—

—

0

1

—

1

Change in treasury sharesof parent arising fromtransactions with
non-controlling shareholders

—

—

53

—

—

—

—

—

—

53

—

53

Net changes of items otherthan shareholders’ equity

—

—

—

—

11,155

553

5,086

4,075

—

20,8693,875

24,744

Balance at March 31, 2021

149,296¥47,586¥46,003¥271,772¥55,761¥ 322¥ 1,542¥ 1,351¥(7,340)¥416,997¥44,257¥461,254

Cumulative effect of changes
in accounting policies

—

—

—

1,708

—

—

—

—

—

1,708

—

1,708

Restated balance—

47,58646,003

273,480

55,761

322

1,542

1,351

(7,340)418,705

44,257462,962

Net income attributable toowners of parent

—

—

—

58,660

—

—

—

—

—

58,660—58,660Change of scope of
consolidation

—

—

—

—

—

—

—

—

—

—

—

—

Cash dividends

—

—

—

(12,855)

—

—

—

—

—

(12,855)—(12,855)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(19)

(19)

—

(19)

Sales of treasury stock

—

—

0

—

—

—

—

—

0

0

—

0

Change in treasury sharesof parent arising fromtransactions with
non-controlling shareholders

—

—

(48)

—

—

—

—

—

—

(48)

—

(48)

—

8,457

6,572

15,029¥(7,359) ¥472,900¥50,829¥523,729

Net changes of items otherthan shareholders’ equity

—

—

—

—

(4,112)

185

12,628(244)

Balance at March 31, 2022

149,296¥47,586¥45,955¥319,285¥51,649¥ 507¥ 14,170¥ 1,107

Balance at March 31, 2021

149,296$390,050$377,080 $2,227,642 $457,062$2,643Thousands of U.S. dollars (Note 3)

Cumulative effect of changes
in accounting policies——

Restated balance—

390,050

Net income attributable toowners of parent

—

—

—

Change of scope of
consolidation——

Cash dividends——

Purchase of treasury stock—

Sales of treasury stock—

Change in treasury sharesof parent arising fromtransactions with
non-controlling shareholders—

Net changes of items otherthan shareholders’ equity
Balance at March 31, 2022

—

—

—

—

457,062

2,643

12,62011,080480,823

—

—

—

—

—

—

—

—

—

—

—

—

(105,373)

—

—

—

—

—

—

—

—

—

—

—

4

—

—

—

—

—

(403)

—

—

—

—

—

—

(33,705)

1,516

103,520(2,004)$376,681 $2,617,096 $423,357$4,159$116,140$ 9,076——$390,050

Fuji Electric Report Financials 2022$(60,169) $3,418,008 $362,768 $3,780,776

14,004

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

15$11,080

377,080 2,241,646

149,296—$ 12,620—

14,004(60,169) 3,432,012—

14,004

362,768 3,794,780

480,823—

480,823

—

—

—

—

—

(105,373)—(105,373)

—

(156)

(156)

—

(156)

—

1

5

—

5

—

—

(403)

—

(403)

—

69,32753,865

123,192$(60,324) $3,876,235 $416,633 $4,292,868

Consolidated Statements of Cash Flows
Years ended March 31, 2022 and 2021

Thousands of
U.S. dollars(Note 3)

Millions of yen

Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Increase in allowance for doubtful accounts
Decrease (increase) in provision for product warranties
Interest and dividend income
Interest expense
Foreign exchange losses
Gain on sales of noncurrent assets
Gain on sales of investment securities
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Factory integration expenses
Loss on withdrawal from businessImpairment loss
Changes in operating assets and liabilities:
Trade receivables
Trade receivables and contract assets
Inventories
Trade payables
Advances received
Contract liabilities
Other, net
Cash generated from operations
Interest and dividends received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash Flows from Investing Activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in (provided by) investing activities
Cash Flows from Financing Activities:
Net decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation
Proceeds from share issuance to non-controlling shareholders
Other, net
Net cash used in financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Increase in Cash and Cash Equivalents Resulting from Change of
Scope of Consolidation
Cash and Cash Equivalents at End of Year

2022

2021

2022

¥ 88,487
39,9691,006(8,711)(2,885)
1,744
(226)
(179)
(10,359)
632
239
335
141
—

¥ 63,284
36,194
1,268
15,478(2,955)
1,441
204
(280)
(40,864)
552
1,018
—
—
963

$ 725,305
327,617
8,248(71,406)(23,650)
14,300(1,860)(1,469)(84,914)
5,186
1,963
2,748
1,163
—

—
(749)
(5,707)(2,623)—9,339(9,624)
100,829
2,847(1,738)(25,129)76,809(20,852)—
7,513(15,881)(12,185)—864
35,762
2,959(1,416)(10,374)
26,931—(6,140)(46,786)(21,507)—
76,556(78,880)
826,474
23,341(14,251)(205,981)
629,583(33,047)
3,762(1,909)17,408(11,146)
7,324(4,742)(22,350)(20,578)622(28)
49,230(3,418)2,802(5,153)
23,477(270,882)
30,844(15,655)
142,694(91,366)
60,035(38,874)(183,204)(3,592)—(4,405)—(20,551)0(19)(12,855)(1,308)(54,178)
62,165(2,156)(15,000)(17,882)1(13)(11,426)(1,134)(29,449)—(36,108)—(168,451)
5(156)(105,373)(10,724)

(163)
—
(1)
(42,894)
4,453
16,01875,332—
105—(39,518)680
11,57063,746(1,337)—2(351,591)
36,505
131,293
617,483—¥ 91,350

16¥ 75,332—$ 748,776

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

Fuji Electric Report Financials 2022

16

Notes to the Consolidated Financial Statements
Note 1. Basis of Preparing Consolidated Financial Statements
The accompanying consolidated financial statements of Fuji
Electric Co., Ltd. (the “Company”) and consolidated subsidiaries(together, the “Companies”) are prepared on the basis of accounting
principles generally accepted in Japan, which are different incertain respects as to application and disclosure requirements ofInternational Financial Reporting Standards, and are compiled fromthe consolidated financial statements prepared by the Company as
required by the Financial Instruments and Exchange Law of Japan.
In preparing these statements, certain reclassifications andrearrangements have been made to the consolidated financial
statements prepared domestically in Japan in order to present
these statements in a form that is more familiar to readers
outside Japan.
In addition, the notes to the consolidated financial statements
include additional information which is not required underaccounting principles generally accepted in Japan.
Certain amounts in the prior year’s financial statements havebeen reclassified to conform to the current year’s presentation.

Note 2. Summary of Significant Accounting Policies
a. Principles of Consolidation
The consolidated financial statements for the year ended March
31, 2022 include the accounts of the Company and its 71
significant subsidiaries and its 4 subsidiaries and affiliates areaccounted for by the equity method (74 and 4 in 2021).
Under the control or influence concept, the accompanying
consolidated financial statements include the accounts of theCompany and, with minor exceptions, those of its subsidiaries,
whether directly or indirectly controlled, and those companies
over which the Companies have the ability to exercise significant
influence are accounted for by the equity method. All significant
intercompany balances and transactions have been eliminatedin consolidation. All material unrealized profits included in assets
resulting from transactions within the Companies are eliminated.
The Company does not consolidate nor apply the equity method
to subsidiaries or affiliates whose gross assets, net sales, net
income (loss) and retained earnings are not significant to theconsolidated financial statements.
Investments in unconsolidated subsidiaries and affiliates arestated at cost.
The balance sheet date of certain consolidated subsidiaries is
December 31 or January 31. In principle, the financial statementsof such subsidiaries were tentatively prepared in accordance withthe fiscal year of the Company, and those were consolidated.
In the elimination of investments in subsidiaries, theassets and liabilities of the subsidiaries, including the portion
attributable to non-controlling shareholders, are evaluated using
the fair value at the time the Company acquired control of therespective subsidiaries.
Goodwill resulting from the difference between the cost andthe underlying net assets at the respective dates of acquisition arebeing amortized over a period of 5 or 10 years.

b. Cash Equivalents
For the purpose of the consolidated statements of cash flows, theCompanies consider all short-term, highly liquid instruments with amaturity of three months or less to be cash equivalents.

c. Inventories
Raw materials are mainly stated at cost, determined by themost recent purchase price method. Finished goods and workin process are mainly stated at actual cost determined byaccumulated production cost for contract items or average costfor regular production items, except that finished goods of certain

17

Fuji Electric Report Financials 2022

consolidated subsidiaries are priced by the most recent purchaseprice method. In accordance with accounting practices generally
accepted in the heavy electric industry, inventories include itemswith a manufacturing period exceeding one year.
Inventories with lower profitability were written down and thelosses on valuation were included in cost of sales.

d. Securities
Other securities
Securities with quoted market price are stated at fair value.
Unrealized gains and losses, net of taxes, are reported in a
separate component of net assets.
Securities with no quoted market price are stated at cost
determined by the moving-average method.

e. Derivatives and Hedging Activities
The Companies enter into derivative financial instruments(“derivatives”), including foreign currency forward contracts tohedge foreign exchange risk associated with certain assets andliabilities denominated in foreign currencies.
In addition, the Companies enter into commodity swap
agreements to hedge the risk of fluctuation of commodity prices
for raw materials.
Derivative financial instruments and foreign currencytransactions are classified and accounted for as follows:a) E xcept as described in the following paragraphs b) and c),
all derivatives are recognized as either assets or liabilities
and measured at fair value, and forward contracts applied
for forecasted transactions are measured at fair value but
the unrealized gains/losses are deferred until the underlying
transactions are completed if the forward contracts qualify
for hedge accounting.
b) Trade receivables and trade payables denominated inforeign currencies for which foreign exchange forward
contracts are used to hedge the foreign currency
fluctuations are accounted for allocation treatment (“Furiate
shori”) where these receivables and payables are translated
at the contracted rate if the forward contracts qualify forhedge accounting.

f. Depreciation
1) Tangible fixed assets (excluding leased assets)
Depreciation is computed by the declining-balance method at
rates based on the estimated useful lives of the assets, while thestraight-line method is applied to the buildings of the Company
and its domestic consolidated subsidiaries acquired after April 1,
1998 and the facilities attached to buildings and the other nonbuilding structures acquired after April 1, 2016. The range of useful
lives is from 15 to 50 years for buildings and from 5 to 12 years formachinery and equipment.
2) Leased assets
Depreciation is computed by the straight-line method over thelease period assuming no residual value. Finance leases otherthan those that were deemed to transfer the ownership of theleased assets to the lessees and contracted before April 1, 2008,
are accounted for by the method that is applicable to ordinary
operating leases.

g. Allowance for Doubtful Accounts
The allowance for doubtful accounts is stated in amounts
considered to be appropriate based on the Companies’ pastcredit loss experience and an evaluation of potential losses in thereceivables outstanding.

h. Provision for Directors’ Retirement Benefits
For certain consolidated subsidiaries, provision for directors’
retirement benefits were provided mainly at an amount to berequired at the year-end according to internal regulations.

i. Provision for product warranties
To prepare for potential warranty costs, provision for productwarranties is recorded based on the past occurrence of thedefects and expected specific events.

j. Retirement Benefits(1)	The retirement benefit obligation for employees is attributed toeach period by the benefit formula method over the estimatedyears of service of the eligible employees.
(2)	Prior service costs are amortized by the straight-line method
within the average remaining years of service of the employee
participants. The actuarial gains and losses are amortized by
the straight-line method within the average remaining years ofservice of the employee participants from the next period inwhich they arise, respectively.

k. Research and Development Costs
Research and development costs are charged to income as incurred.

The Companies are engaged in a wide range of businessactivities, such as product development, production, sales, andservices. The details of the main performance obligations related
to revenues from the contracts with the customers in the main
business and the normal time points to satisfy the performanceobligations (normal time points to recognize revenues) are as
follows.
(1) Sales of standard products
For the performance obligation, control of goods is transferred to acustomer at a point in time.
For domestic sales, the Companies recognize revenue upon
shipment because the period from shipment to transfer of control
of goods to customer is the normal period. (Application of shipping
standards) For domestic sales which do not apply shipping
standards, the Companies recognize revenue upon delivery of
goods to a customer.
For export transactions, the Companies recognize revenue
upon delivery of goods to customer specified in trade terms.
(2) S ales of job-order production goods, contract works andrendering of services
For the performance obligation, the Companies apply the methodthat revenues is recognized over time by measuring progress
toward complete satisfaction of performance obligations (thecost-based input method is used in measuring the progress). The
progress toward complete satisfaction of performance obligations
is determined based on the ratio of costs incurred to the end of
the fiscal year to the estimate of the total cost of the contract.
In the case that progress cannot be reasonably estimated, theCompanies recognize revenue under the cost recovery method
only to the extent of the costs incurred that are expected to be
recovered. For maintenance contracts, etc., in which services
are rendered to customers evenly over the contract period, theCompanies recognize revenue on a straight-line basis over thecontract period. When an invoiced amount (right to invoice)directly corresponds to the consideration amount for the satisfied
performance obligation, the Companies recognize revenue by theamount in which the invoice is entitled. Regarding estimates ofprogress toward complete satisfaction of performance obligations,the Companies apply a method that appropriately reflects thetransfer of control and consistently apply it to similar performanceobligations. In addition, the progress toward complete satisfactionof performance obligations is appropriately reviewed at the end of
the fiscal year.

l. Recognition for Revenue and Costs
In accordance with the following five-step approach, theCompanies recognize a transfer of a promised good or service
to a customer as revenue in an amount which reflects theconsideration expected to be entitled in exchange for the good orservice.
Step 1: Identify the contract (s) with a customer
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price
Step 4: A llocate the transaction price to the performanceobligations in the contract
Step 5: R ecognize revenue when (or as) the Companies satisfies a
performance obligation

m. Income Taxes
The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income. The
Company filed a consolidated tax return, which allows companies
to file tax payments on the combined basis of profits or losses ofthe parent company and its wholly owned domestic subsidiaries.
The asset and liability approach is used to recognize deferred tax
assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax
bases of assets and liabilities. Deferred taxes are measured byapplying currently enacted tax laws to the temporary differences.

Fuji Electric Report Financials 2022

18

n. Foreign Currency Transactions
All monetary receivables and payables denominated in foreign
currencies are translated into Japanese yen at the exchange rates
at the balance sheet date. The foreign exchange gains and losses
from translation are recognized in the consolidated statements
of income to the extent that they are not hedged by forward
exchange contracts.

o. Foreign Currency Financial Statements
Assets, liabilities, and revenue and expense accounts of theforeign consolidated subsidiaries are translated into Japanese yenat the current exchange rate as of the balance sheet date except
for shareholders’ equity, which is translated at the historical rate.
Differences arising from such translation are included in foreign
currency translation adjustments and non-controlling interests inconsolidated subsidiaries as a separate component of net assets.

p. Applying tax effect accounting for the transition from
Consolidated Taxation System to Group Tax Sharing
SystemFuji electric and some domestic consolidated subsidiaries expect
to transfer from the “Consolidated Taxation System” to the“Group Tax Sharing System” from the subsequent fiscal year.
However, regarding the transition to the group tax sharing system,
established under the “Law that partially amends the Income
Tax Law” (Law No. 8 issued on 2020), and the revised items of
the Non-consolidated Tax Return Filing System in relation to thetransition, the Companies did not apply the “Implementation
Guidance on Tax Effect Accounting” (Accounting Standard

Board of Japan (“ASBJ”) statement No.28 issued on February 16,2018) paragraph 44, in accordance with “Treatment of Tax EffectAccounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System” (Practical Solution No.
39 issued on March 31, 2020) paragraph 3. Therefore, the amountof deferred tax assets and deferred tax liabilities were based on
the tax law before the revision.
From the beginning of the subsequent fiscal year, theCompanies expect to adopt the “Accounting and Disclosure Under
the Group Tax Sharing System” (Practical Solution No. 42 issued
on August 12, 2021), which stipulates treatments for corporate
income tax, local corporate income tax, and tax effect accounting
when applying the “Group Tax Sharing System.”q. Amounts Per Share
Basic net income per share is computed based on the net income
attributable to common shareholders of the parent and theweighted average number of shares of common stock outstanding
during the year, and diluted net income per share is computed
based on the net income attributable to owners of parent’s
common stock and weighted average number of shares ofcommon stock outstanding during each year after giving effect tothe dilutive potential of shares of common stock to be issued upon
the exercise of warrants and stock subscription rights.
Net assets per share are computed based on the net assets
excluding share subscription rights and non-controlling interests
and the number of shares of common stock outstanding at theyear end.

r. A ccounting Standard for Disclosure of Accounting Estimates
1. Revenues recognized over time by measuring progress toward complete satisfaction of performance obligations(1) Amounts recorded for the year ended March 31, 2022
Thousands of
U.S. dollars (Note 3)

Millions of yen

Sales
Ending balance of contract assets(construction contract receivable for the previous fiscal year)

2022

2021

2022

¥ 94,957¥ 66,897$ 778,343

46,34930,754379,917

Note: T he above amounts represent unfinished, undelivered, or imcomplete contracts of job-order production goods, contract works and rendering of services, which recognize
revenues over time by measuring progress toward complete satisfaction of performance obligations, as of the end of the current fiscal year. (Contracts which have satisfied theall performance obligations are not included. In addition, contracts in which revenues are recognized under the cost recovery method, which recognizes revenue only to theextent of the costs incurred expected to be recovered in the case that progress cannot be reasonably estimated, are not included.)(2) S upplemental information for understanding
the consolidated financial statements
a. Calculation method
For construction contracts, the Companies apply the method thatrevenue is recognized over time by measuring progress toward
complete satisfaction of performance obligations (the cost-based
input method is used in measuring the progress). The progress
toward complete satisfaction of performance obligations isdetermined based on the ratio of costs incurred to the end of the
fiscal year to the estimation of the total cost of the contract.
b. Key assumption
The estimates of total costs are calculated by aggregating
objective prices such as third party quotations and internally

19

Fuji Electric Report Financials 2022

approved standard unit prices. However, the estimates of
total costs are the key assumption because the Companies
also rely on their specialized knowledge of and experience inconstruction contract.
c. Effect on the subsequent fiscal year
Since construction contracts are, in general, long-term contracts,
construction contracts may potentially be modified and there
may be fluctuations in material, labor, and other such costs whileconstruction contracts are still in progress. Corresponding tochanges in the estimates of total costs, progress rates change andthe amount of revenue to be recognized in the subsequent fiscal
year may be affected.

2. C alculation of defined benefit obligation(1) Amounts recorded for the year ended March 31, 2022
Thousands of
U.S. dollars (Note 3)

Millions of yen

Net defined benefit asset
Net defined benefit liability
Remeasurements of defined benefit plans(2) S upplemental information for understanding the financial
statements
a. Calculation method
The Companies primarily apply defined benefit plans. Defined
benefit obligation for defined benefit plans is estimated by
payment calculation standard, based on discount rates andactuarial assumptions, such as mortality rates, retirement rates,
salary inflation etc.
b. Key assumption
Discount rates are calculated by the yield curve equivalentapproach primarily based on high quality corporate bonds.
c. Effect on the subsequent fiscal year
In the case that it is necessary to review discount rates, which areused to calculate defined benefit obligation, net defined benefit
asset, net defined benefit liability, and remeasurements of defined
benefit plans for the subsequent fiscal year may be affected.
Note: About the effects of novel coronavirus (COVID-19) pandemic
The novel coronavirus (COVID-19) pandemic has restricted economic activity
on an unprecedented scale in many countries. Due to the tough situation, theCompanies are facing problems such as extensions of delivery and capital
investment cutbacks. Since it is very difficult to predict how long it will spread
and when it will end, the Companies make accounting estimations based on
the information available at the end of the consolidated fiscal year and theassumption that the condition will continue for a certain period of the next
consolidated fiscal year.

s. Change in accounting policy
1. Application of “Accounting Standard for Revenue
Recognition,” etc.
From the beginning of the current fiscal year, the Companies
applied “Accounting Standard for Revenue Recognition” (ASBJ
statement No. 29 issued on March 31, 2020), etc. Under thesestandards, the Companies recognize revenue as ‘the amount
expected to be received in exchange for goods or services’ whencontrol of the promised goods or services are transferred to acustomer. The main changes due to the application of “AccountingStandard for Revenue Recognition,” etc. are as follows:(1) Performance obligations to be satisfied over time
Regarding to construction contracts for which the Companies
had previously applied the percentage of completion method,
the Companies changed the revenue recognition method for thecontracts which satisfy performance obligations over time. Under
the new method, if the progress toward complete satisfactionof performance obligations can be reasonably estimated, theCompanies recognize revenue based on the ratio of costs incurred
to the estimate of the total cost. If the progress toward complete
satisfaction of performance obligations cannot be reasonably
estimated, the Companies recognize revenue, under the cost

2022

2021

2022

¥ 22,516
57,5901,107¥ 21,043
53,322
1,351$ 184,560
472,055
9,076

recovery method, only to the extent of the costs incurred which
are expected to be recovered.
(2) Agent transactions
Regarding to agent transactions for which the Companies
had previously recognized revenue with the gross amount, theCompanies changed to recognize revenue with the net amount.
Regarding the application of the “Accounting Standard for
Revenue Recognition,” etc., in accordance with the transitional
treatment stipulated in the proviso of paragraph 84 of the“Accounting Standard for Revenue Recognition,” the cumulative
impact of retroactive application of new accounting policies prior
to the beginning of the current fiscal year is added or subtracted
from retained earnings at the beginning of the current fiscal year.
However, in accordance with the paragraph 86 of the “AccountingStandard for Revenue Recognition,” contracts from which almost
all revenue was recognized under the prior accounting policy did
not retrospectively apply the new accounting policy. In addition, in
accordance with the proviso 1 of paragraph 86 of the “AccountingStandard for Revenue Recognition,” contract changes madebefore the beginning of the current fiscal year were accounted
for based on the contract conditions after reflecting all contractchanges and the cumulative impact is added or subtracted fromretained earnings at the beginning of the current fiscal year.
As a result, compared to before the application of the “AccountingStandard for Revenue Recognition,” etc., net sales decreasedby ¥2,065 million ($16,933 thousand), with the cost of sales
decreasing by ¥1,377 million ($11,293 thousand), selling, generaland administrative expenses decreasing by ¥184 million ($1,512
thousand), operating income decreasing by ¥503 million ($4,128
thousand) and ordinary income and income before income
taxes decreasing by ¥377 million ($3,094 thousand). In addition,reflecting the cumulative impact of the application, the beginningbalance of retained earnings increased by ¥1,708 million ($14,004
thousand).
Due to the application of the “Accounting Standard for Revenue
Recognition,” etc., “Trade receivables” stated in the current
assets for the previous year is separately classified as “Notes
receivable-trade,” “Accounts receivable-trade” and “Contract
assets” from the current fiscal year. “Advances received” stated in
the current liabilities in the previous year is included in “Contract
liabilities” from the current fiscal year. The effect on amounts per
share information is stated in “Note 25. Amounts Per Share.” Inaccordance with the transitional treatment stipulated in paragraph89-3 of the Accounting Standard for Revenue Recognition,” notes
related to the “Revenue Recognition” for the previous fiscal year
are not stated.

Fuji Electric Report Financials 2022

20

2. A
 pplication of “Accounting Standard for Fair Value
Measurement,” etc.
From the beginning of the current fiscal year, the Companies
applied the “Accounting Standard for Fair Value Measurement”(ASBJ statement No. 30 issued on July 4, 2019). In accordancewith the transitional treatment stipulated in paragraph 19 of
the “Accounting Standard for Fair Value Measurement” andthe “Accounting Standard for Financial Instruments” (ASBJ
statement No. 10 issued on July 4, 2019) paragraph 44-2, the

new accounting policy stipulated by “Accounting Standard for
Fair Value Measurement,” etc. will be applied in the future. The
application does not affect the consolidated financial statements.
Regarding to the note to financial instruments, fair values offinancial instruments by levels are stated. However, in accordancewith the transitional treatment stipulated in paragraph 7-4 of the“Implementation Guidance on Disclosures about Fair Value of
Financial Instruments.” (ASBJ statement No. 19 issued on July 4,2019), notes related to the previous fiscal year are not stated.

Note 3. U.S. dollar Amounts
The U.S. dollar amounts included in the accompanying
consolidated financial statements and notes thereto represent
the arithmetic results of translating yen into U.S. dollars at¥122=U.S.$1, the approximate exchange rate as of March 31,
2022. The U.S. dollar amounts are presented solely for theconvenience of the readers outside Japan.

Note 4. Inventories
Inventories as of March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Merchandise and finished goods
Work in process
Raw materials
Inventories

2022

2021

2022

¥ 55,051
51,82763,417¥ 170,295¥ 66,319
65,023
51,848¥ 183,190$ 451,243
424,816
519,803$ 1,395,862

Losses on valuation of inventories with lower profitability were ¥71 million ($584 thousand) and ¥50 million for the years ended March
31, 2022 and 2021, respectively. These were included in cost of sales.

Note 5. Pledged Assets and Financial Assets Accepted as Collateral
The amounts of assets pledged as collateral for trade payables, short-term debt and long-term debt as of March 31, 2022 and 2021 wereas follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Investment securities
Property, plant and equipment
Intangible assets
Total

2022

2021

2022

¥ 17
443
—
¥ 460

¥ 21
585
379
¥ 985

$ 146
3,627
—
$ 3,773

Collateralized liabilities as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Trade payables
Short-term debt
Total

21

Fuji Electric Report Financials 2022

2022

2021

2022

¥ 78
153
¥ 231

¥ 37
479
¥ 516

$ 643
1,254
$ 1,897

Note 6. Financial Instruments
1. Status of financial instruments(1) Policy regarding financial instruments
The Companies limit the scope of their cash and fundmanagement activities to short-term deposits. When raisingfunds, the Companies have a policy of relying principally onbank borrowings, bonds payable and commercial paper. The
Companies mainly raise the operating funds through short-termloans payable and commercial paper, and the funds relating tocapital investments through long-term loans payable and bonds
payable. The Companies make use of derivatives to reduce risk,
as explained below, and have a policy of not engaging in derivativetransactions for speculative purposes.
(2) Details of financial instruments and associated risk
In the course of its business activities, trade receivables are
exposed to customer credit risk.
In addition, trade receivables denominated in foreign currencies
arising from international business are exposed to exchangerisk. The Companies hedge the exchange risk, by using foreignexchange forward contracts within the range prescribed relating
to the net amount of the trade receivables denominated inforeign currencies, offset by the amount of the trade payables
denominated in the same currencies.
Short-term investments and investment securities arecomprised primarily of stocks of companies with which theCompanies have business relation and are exposed to market
price risk.
Trade payables are mostly payable within one year. Some
trade payables are denominated in foreign currencies andexposed to exchange risk. The Companies hedge the exchange
risk of the trade payables denominated in foreign currencies inprinciple, except for the amount within that of trade receivables
denominated in the same currencies, by using foreign exchange
forward contracts.
Short-term loans payable and commercial paper are primarilyraised for the purpose of maintaining operating funds. Bonds
payable, long-term loans payable and lease obligations on financelease transactions are primarily raised for the purpose of preparing
capital investment. The maturities of these bonds payable,
long-term loans payable and lease obligations on finance leasetransactions are up to 15 years at the longest after the balance
sheet date. Some are exposed to interest rate fluctuation andexchange risk.
Regarding derivatives, the Companies employ foreignexchange forward contracts to reduce the risk of foreign currency
exchange movements that arise from the previously mentioned
receivables and payables denominated in foreign currencies.
In addition, the Companies use commodity swap transactions
to reduce the risk of fluctuation of commodity prices for raw
materials. As hedging instruments under hedge accounting, theCompanies enter into these derivative transactions in accordancewith Companies’ policies to reduce the corresponding risk to eachhedged item. The Companies compare the market change ofhedged items and hedging instruments or the cash flow changes.
Assessment of effectiveness for hedging activities depends on theratio of the amount of change.

(3) Systems for management of financial instruments riska) C redit risk management (the risk that transaction partners
may default on their obligations to the Companies)
The credit risk in relation to trade receivables from customers,
pursuant to criteria for managing credit exposure, is managed bycontrolling due dates and balances of each customer. In addition,
the Companies manage to identify doubtful receivables earlier
and mitigate their risk caused by aggravation of the financing
position, etc.
Because the counterparties to derivative transactions arelimited to authentic financial institutions, the Companies do not
anticipate any losses arising from credit risk.
b) M arket risk management (the risks arising fromfluctuations in exchange rates, interest rates and otherindicators)
The Companies, in principle, employ foreign exchange forward
contracts to reduce the risk of foreign currency exchange
movements that arise from the previously mentioned receivables
and payables denominated in foreign currencies. In addition, theCompanies use commodity swap transactions to reduce the riskof fluctuation of commodity prices for raw materials.
Regarding investment securities, the Companies periodicallyreview the market value of such financial instruments and thefinancial position of the issuer (the company having business
transactions with the Companies). In addition, other than debt
securities to be held until maturity, the Companies review thestatus of these investments on a continuing basis.
Derivative transactions have been entered into in accordancewith the Companies’ policies. The execution of derivatives, which
is based on the application of each section, is mainly controlled
by the Finance Department of each company, or by the Material
Section regarding commodity swap transactions. In addition, theFinance Department periodically reports to the management andeach section, and strictly performs risk management relating toderivative transactions.
c) L iquidity risk management (the risk that the Companies
may not be able to meet its payment obligations on thescheduled date)
The Companies reduce the liquidity risk by having each company
review and revise cash management plans monthly or timely.
(4) S upplementary explanation of the estimated fair value offinancial instruments and related matters
Since variable factors are taken into account in computing thefair value of financial instruments, the price is may fluctuate
depending on different assumptions adopted. In addition, thecontract (notional) amount of derivatives in “Note 8. Derivatives”
is not an indicator of the actual market risk involved in derivativetransactions.

Fuji Electric Report Financials 2022

22

2. Estimated fair value and other matters related to financial instruments
Carrying amounts on the consolidated balance sheets as of March 31, 2022 and 2021, estimated fair value and the variance between
them are shown in the following table.
Millions of yen

2022

Accounts receivable-trade
Investment securities
Bonds
Long-term debt
Lease obligations
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value¥ 217,731
110,217(35,000)(66,276)(60,562)¥ 217,702
121,365(34,851)(66,264)(60,908)

(150)
731

(150)
731

Variance¥(29)
11,148
(149)
(12)
346
—
—

Note: The following securities with no quoted market price are not included in the “Investment securities.”
Millions of yen

2022
Carrying amounts
Unlisted stocks (including stocks of unconsolidated subsidiaries and affiliates)¥16,098

Millions of yen

2021

Accounts receivable-trade
Investment securities
Bonds
Long-term debt
Lease obligations
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value¥ 260,141
122,284(35,000)(96,686)(61,602)¥ 260,108
136,587(34,925)(96,859)(62,121)

(200)
464

(200)
464

Variance¥(33)
14,303
75
(173)
519
—
—

Note: T he following financial instruments are not included in “Investment securities” because they do not have a market price and obtaining an estimated fair value is deemed to be
extremely difficult.
Millions of yen

2021
Carrying amounts
Unlisted stocks (including stocks of unconsolidated subsidiaries and affiliates)¥13,997

Thousands of U.S. dollars (Note 3)2022

Accounts receivable-trade
Investment securities
Bonds
Long-term debt
Lease obligations
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value$ 1,784,686
903,424(286,885)(543,253)(496,414)$ 1,784,446
994,796(285,664)(543,155)(499,251)(1,232)
5,995(1,232)
5,995

Variance$(240)
91,372(1,221)
(98)
2,837
—
—

Note: The following securities with no quoted market price are not included in the “Investment securities.”
Thousands of
U.S. dollars (Note 3)

2022
Carrying amounts
Unlisted stocks (including stocks of unconsolidated subsidiaries and affiliates)$131,955(*1) Figures shown in parentheses are liability items.
(*2) The value of assets and liabilities arising from derivatives is shown at net value, and a net liability position is shown in parentheses.
(*3) S ince Cash and cash equivalents, Notes receivable-trade, Trade payables, and Short-term debt are settled in a short period of time, estimated fair values are virtually thesame as the carrying amounts.

23

Fuji Electric Report Financials 2022

Note 1: Redemption schedule for monetary assets and securities with maturity dates as of March 31, 2022 and 2021:
Millions of yen

2022
Within 1 year
Cash and cash equivalents¥ 91,350

Between 1 and5 years¥

Between 5 and10 years

Over 10 years

—

¥ —

¥—

Notes receivable-trade75,521———

Accounts receivable-trade215,671

1,579

482

—

¥ 382,542¥ 1,579¥ 482¥—

Between 5 and10 years

Over 10 years

—

¥ —

¥—

Total

Millions of yen

2021
Within 1 year

Between 1 and5 years

Cash and cash equivalents¥ 75,332

Trade receivables

313,253

5,920

470

—

¥ 388,585¥ 5,920

¥ 470

¥—

Total

¥

Thousands of U.S. dollars (Note 3)2022
Within 1 year
Cash and cash equivalents$

748,776

Notes receivable-trade$

Between 5 and10 years—$

Over 10 years—$—

619,030———

1,767,787

12,944

3,954—$ 3,135,593$ 12,944$ 3,954$—

Accounts receivable-trade
Total

Between 1 and5 years

Note 2:Repayment schedule for long-term debt and lease obligations:
Please refer to “Note 9. Short-term Debt and Long-term Debt” and “Note 10. Lease Obligations.”

3. Fair value of financial instruments by levels
Financial instruments measured at fair value are classified into the following three levels based on the observability and significance of
inputs used to measure such financial instruments.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Fair value, other than Level 1, that is determined by directly or indirectly using the observable price
Level 3: Fair value determined by using valuation techniques that incorporate unobservable inputs
When several inputs are used for a fair value measurement, the level is determined based on the input that is significant with thelowest level in the fair value measurement .
(1) Financial instruments measured at fair value on the consolidated balance sheets
Millions of yen

2022
Fair value
Class of financial instrument

Investment securities
Other securities
Equity securities
Total financial assets at fair value
Derivatives
Currency derivatives
Total derivatives at fair value

Level 1

Level 2

Level 3Total

¥ 99,698¥ 99,698

¥ —
¥ —

¥—
¥—

¥ 99,698¥ 99,698

¥
¥

¥ 581
¥ 581

¥—
¥—

¥
¥

—
—

581
581

Thousands of U.S. dollars (Note 3)

2022
Fair value
Class of financial instrument

Investment securities
Other securities
Equity securities
Total financial assets at fair value
Derivatives
Currency derivatives
Total derivatives at fair value

Level 1

Level 2

Level 3

Total

$ 817,202$ 817,202

$
$

—
—

$—
$—

$ 817,202$ 817,202$$$ 4,763$ 4,763

$—
$—

$
$

—
—

4,763
4,763

Note: The value of assets and liabilities arising from derivatives is shown at net value, and a net liability position is shown in parentheses.

Fuji Electric Report Financials 202224

(2) Financial instruments other than those measured at fair value on the consolidated balance sheets
Millions of yen

2022
Fair value
Class of financial instrument

Accounts receivable-trade
Investment securities
Unconsolidated subsidiaries and affiliates
Shares of Affiliates
Total financial assets at fair value
Bonds
Long-term debt
Lease obligations
Total financial liabilities at fair value

Level 1

Level 2

Level 3Total—

¥ 217,702¥—¥ 217,702

21,666¥ 21,666
¥
—
—
—
¥
—

—
¥ 217,702¥ 34,851
66,26460,909¥ 162,024

—
¥—
¥—
—
—
¥—

21,666¥ 239,368¥ 34,851
66,26460,909¥ 162,024¥

Thousands of U.S. dollars (Note 3)

2022
Fair value
Class of financial instrument

Accounts receivable-trade
Investment securities
Unconsolidated subsidiaries and affiliates
Shares of Affiliates
Total financial assets at fair value
Bonds
Long-term debt
Lease obligations
Total financial liabilities at fair value

Level 1

Level 2

Level 3

Total—

$ 1,784,446$—$ 1,784,446

177,594$ 177,594
$
—
—
—
$
—

—
$ 1,784,446$ 285,664
543,155499,251$ 1,328,070

—
$—
$—
—
—
$—

177,594$ 1,962,040$ 285,664
543,155499,251$ 1,328,070$

Notes: Measurement method and description of inputs for fair value for financial instruments(1) Investment securities
The fair value of listed stocks is based on the quoted price. Since listed stocks are traded in active markets, the fair value is classified as Level 1.
(2) Derivatives
The fair values of foreign currency forward contracts and commodity swap contracts are based on the the prices provided by financial institutions and the fair value isclassified as Level 2. In addition, since foreign currency forward contracts under the allocation method are treated together with accounts receivable-trade, contract assets
and accounts payable-trade the fair value of such contracts is included in the fair value of the accounts.
(3) Accounts receivable-trade
The fair values of accounts receivable-trade, classified by each maturity, is based on the present value discounted by the interest rate that takes into account the maturity andthe credit risk. The fair value is classified as Level 2.
(4) Bonds
The fair value of listed stocks is based on the quoted price provided by the Japan Securities Dealers Association. Since the quoted price is not in active markets, the fair value
is classified as Level 2.
(5) Long-term debt (except bonds) and (6) Lease obligations
Fair values of long-term debt and lease obligations are based on the present value of the total principal and interest discounted by the interest rate that takes into account thematurity and the credit risk. The fair value is classified as Level 2.

25

Fuji Electric Report Financials 2022

Note 7. Securities
1. Other securities as of March 31, 2022 and 2021 were as follows:
Millions of yen

2022

Marketable securities classified as other securities
Equity securities
Debt securities
Others
Total

Cost

Carrying amounts

Unrealized gains

Unrealized losses¥ 24,726——¥ 24,726¥99,698——¥99,698¥ 75,961——¥ 75,961¥ (989)——¥ (989)Note: S ecurities with no quoted market price is not included in the preceding tables:
Unlisted stocks (Values in the consolidated balance sheets as of March 31, 2022 was ¥4,062 million.)

Millions of yen

2021

Marketable securities classified as other securities
Equity securities
Debt securities
Others
Total

Cost

Carrying amounts

Unrealized gains

Unrealized losses¥ 31,558——¥ 31,558¥ 112,491——¥ 112,491¥ 81,413——¥ 81,413¥ (480)——¥ (480)Note: T he following is not included in the preceding tables because it does not have market price and obtaining an estimated fair value is deemed to be extremely difficult:
Unlisted stocks (Values in the consolidated balance sheets as of March 31, 2021 was ¥4,015 million.)

Thousands of U.S. dollars (Note 3)2022

Marketable securities classified as other securities
Equity securities
Debt securities
Others
Total

Cost

Carrying amounts

Unrealized gains

Unrealized losses$ 202,676——$ 202,676$ 817,202——$ 817,202$ 622,634——$ 622,634$ (8,108)——$ (8,108)

Note: S ecurities with no quoted market price is not included in the preceding tables:
Unlisted stocks (Values in the consolidated balance sheets as of March 31, 2022 was $33,302 thousand.)2. Sales of other securities for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Proceeds from sales
Gain on sales
Loss on sales

2022

2021

2022

¥ 16,388
9,627
(21)

¥ 49,224
40,864(0)$ 134,333
78,913(172)

3. Impairment of other securities for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Impairment losses

2022

2021

2022

¥ 239

¥ 1,018$ 1,963

Fuji Electric Report Financials 2022

26

Note 8. Derivatives
1. Derivative transactions to which hedge accounting is not applied
Millions of yen

2022

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Won
Payables:U.S. dollar
YenAustralia Dollar
Total

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss

¥ 678
1,787
286

¥—
—
—

¥ (35)(77)(12)¥ (35)
(77)
(12)

259
1,956
27
¥ 4,993

—
—
—
¥—

6
(34)
2
¥ (150)6(34)
2¥ (150)Millions of yen

2021

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Won
Yuan Renminbi
Payables:U.S. dollar
Yen
Singapore Dollar
Yuan Renminbi
Total

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss¥ 1,013
1,882
340
2,302

¥—
—
—
—

¥ (50)
(70)
(10)
(48)

¥ (50)
(70)
(10)
(48)

1,445
1,933
9
111
¥ 9,035

—
—
—
—
¥—

16
(39)
0
1
¥ (200)

16
(39)
0
1
¥ (200)Thousands of U.S. dollars (Note 3)2022

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Won
Payables:U.S. dollar
YenAustralia Dollar
Total

27

Fuji Electric Report Financials 2022

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss$ 5,546
14,648
2,345

$—
—
—

$

$

2,127
16,040222$ 40,928

—
—
—
$—

54
(285)
17
$ (1,232)

(278)
(636)
(104)

(278)
(636)
(104)

54
(285)
17
$ (1,232)

2. Derivative transactions to which hedge accounting is applied
Currency-related contracts
Millions of yen

2022
Hedge accounting
methodType of derivative

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Deferral hedge
Payables:methodU.S. dollar
Euro
Australia Dollar
Baht
Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Yuan Renminbi
Baht
Allocation method
Singapore Dollar
Payables:U.S. dollar
Euro
Yen
Total

Principal items hedged

Contract amountContract amountover 1 year

Fair value

Accounts receivable-trade
¥

993
2,910

¥

—
—

¥

(4)
(10)

Accounts payable-trade
2,323
4,127
0
23

—
2,353
—
—

183
560
0
2

Accounts receivable-trade
¥

189
70
213
515
85

¥

—
—
—
—
—

(Note2)

Accounts payable-trade621
085¥ 12,154———¥ 2,353¥ 731

Millions of yen

2021
Hedge accounting
methodType of derivative

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Deferral hedge
Baht
methodPayables:U.S. dollar
Euro
Singapore Dollar
Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Yuan Renminbi
Allocation method
Baht
Singapore Dollar
Payables:U.S. dollar
Yen
Total

Principal items hedged

Contract amountover 1 year

Fair value

634
2,023
38

¥ 215
—
—

¥ (46)
(10)
(3)

157
5,216
2

—
3,710
—

7
516
0

Contract amountAccounts receivable-trade¥

Accounts payable-trade

Accounts receivable-trade
¥

244
88
132
108
833

¥

—
—
—
—
—

(Note2)

Accounts payable-trade
6833¥ 10,314——¥ 3,925¥ 464

Fuji Electric Report Financials 2022

28

Thousands of U.S. dollars (Note 3)

2022
Hedge accounting
methodType of derivative

Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Deferral hedge
Payables:methodU.S. dollar
Euro
Australia Dollar
Baht
Foreign currency forward contracts:
Receivables:
U.S. dollar
Euro
Yuan Renminbi
Baht
Allocation method
Singapore Dollar
Payables:U.S. dollar
Euro
Yen
Total

29

Fuji Electric Report Financials 2022

Principal items hedged

Contract amountContract amountover 1 year

Fair value

Accounts receivable-trade$ 8,091
23,853

$

—
—

$

(38)
(83)

Accounts payable-trade
19,042
33,834
1
196—
19,291
—
—

1,505
4,592
0
19

Accounts receivable-trade$ 1,552
578
1,751
4,225
703

$

—
—
—
—
—

5,097
4
703
$ 99,630———$ 19,291(Note2)

Accounts payable-trade$ 5,995

Note 9. Short-term Debt and Long-term Debt
Short-term debt as of March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Loans, principally from banks
Commercial paper
Short-term debt

2022

2021

2022

¥ 14,691—¥ 14,691¥ 17,601—¥ 17,601$ 120,418—$ 120,418

Note: The weighted average interest rates on short-term debt as of March 31, 2022 and 2021 were 1.92% and 1.26%, respectively.

Long-term debt as of March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Loans, principally from banks and insurance companies
Bonds issued by the Company:
0.28% Yen unsecured straight bonds due August 31, 2023
0.40% Yen unsecured straight bonds due May 21, 2027
0.40% Yen unsecured straight bonds due May 25, 2028
Less: Portion due within one year
Long-term debt

2022

2021

2022

¥ 96,569¥ 100,828$ 791,556

15,00010,00010,000131,569
30,293¥ 101,276

15,00010,00010,000135,828
4,142¥ 131,686

122,951
81,967
81,967
1,078,441
248,303$ 830,138

Note: The weighted average interest rates on loans, principally from banks and insurance companies, as of March 31, 2022 and 2021 were 0.26% and 0.26%, respectively.

As of March 31, 2022, the aggregate annual maturities of long-term debt were as follows:
Years ending March 31,

Millions of yen

Thousands of
U.S. dollars (Note 3)

2024
2025
2026
2027
2028 thereafter
Total¥ 52,676
28,500100—
20,000¥ 101,276$ 431,777
233,607820—
163,934$ 830,138

Note 10. Lease Obligations
Lease obligations as of March 31, 2022 and 2021 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

2022

2021

2022

¥ 19,584
40,978¥ 60,562¥ 18,376
43,226¥ 61,602$ 160,527
335,888$ 496,415

Years ending March 31,

Millions of yen

Thousands of
U.S. dollars (Note 3)

2024
2025
2026
2027
2028 thereafter
Total¥ 14,817
11,046
7,713
5,093
2,309
¥ 40,978$ 121,452
90,54363,22341,74918,921$ 335,888

Short-termLong-term
Total

Note: The weighted average interest rates on lease obligations as of March 31, 2022 and 2021 were 2.01% and 2.07%, respectively.

As of March 31, 2022, the aggregate annual maturities of lease obligations were as follows:

Fuji Electric Report Financials 2022

30

Note 11. Retirement Benefits
1. Outline of retirement benefits for employees
The Company and most of its consolidated subsidiaries have
either funded or unfunded defined benefit plans and defined
contribution pension plans.
Defined benefit corporate pension plans are all funded andcover substantially all employees who are entitled to lump-sum or
annuity payments determined by reference to their basic rates of
pay and length of service. In addition, retirement benefit trust has
been established in certain pension plans.
Lump-sum payment plans are either unfunded or funded
as a result of establishing retirement benefit trust. They coversubstantially all employees who are entitled to lump-sum
payments determined by reference to either points obtained withinterest credits or their basic rates of pay and length of service.
Certain domestic consolidated subsidiaries adopted asimplified method in the calculation of net defined benefit liability
and retirement benefit expense. Certain domestic consolidated
subsidiaries have multi-employer corporate pension plansaccounted for by the same methods used for defined contribution
pension plans because they cannot reasonably calculate their
portion of pension assets corresponding to their contributions.

2. Information on defined benefit pension plans(1) The changes in the retirement benefit obligation except for plans accounted for by a simplified method during the years
ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Retirement benefit obligation at the beginning of the year
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
Prior service cost
Deference arising from the change from simplified method to principle method
OthersRetirement benefit obligation at the end of the year

2022

2021

2022

¥ 173,241
3,374
2,331
295
(11,826)
1,709—
28¥ 169,152

176,192
3,115
2,349
2,529
(11,408)
(109)
533
40
¥ 173,241$ 1,420,015
27,662
19,113
2,422(96,937)
14,015—205$ 1,386,495(2) T he changes in plan assets at fair value except for plans accounted for by a simplified method during the years ended
March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Plan assets at fair value at the beginning of the year
Expected return on plan assets
Actuarial gainContributions by the Companies
Retirement benefits paid
Deference arising from the change from simplified method to principle method
OthersPlan assets at fair value at the end of the year

2022

2021

2022

¥ 143,162
2,074
1,241
627
(10,689)—5¥ 136,420¥ 143,405
2,009
7,226
665
(10,710)562
5¥ 143,162$ 1,173,466
17,001
10,1785,142(87,622)—39$ 1,118,204(3) T he changes in defined benefit liability and asset calculated by a simplified method during the years ended March 31, 2022
and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Retirement benefit obligation at the beginning of the year
Defined benefit asset at the beginning of the year
Retirement benefit expenses
Retirement benefits paid
Contributions
Deference arising from the change from simplified method to principle method
OthersDefined benefit liability at the end of the year
Defined benefit asset at the end of the year

31

Fuji Electric Report Financials 2022

2022

2021

2022

¥ 2,211
(10)
324
(229)
(36)
—
83
¥ 2,447¥ (104)¥ 2,140
—
192
(84)
(86)
22
17
¥ 2,211¥ (10)$ 18,128(90)
2,657(1,885)(303)—
698$ 20,064$ (859)(4) T he reconciliation of retirement benefit obligation and plan assets at fair value with net defined benefit liability and net
defined benefit asset recognized in consolidated balance sheet were outlined as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2022

2021

2022

Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized in the consolidated balance sheet¥ 164,259(138,328)
25,931
9,143¥ 35,074¥ 171,106(146,055)
25,051
7,228¥ 32,279$ 1,346,389(1,133,835)
212,553
74,943$ 287,496

Net defined benefit liability
Net defined benefit asset
Net amount of liabilities and assets recognized in the consolidated balance sheet

57,590(22,516)¥ 35,074

53,322(21,043)¥ 32,279

472,055(184,559)$ 287,496

Funded retirement benefit obligation
Plan assets at fair value

Note : Pension plans accounted for by a simplified method are included.

(5) The components of retirement benefit expenses for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expenses calculated by simplified method
Deference arising from the change from simplified method to principle method
OthersRetirement benefit expenses

2022

2021

2022

¥ 3,3742,331(2,074)
1,475
(774)
324
—
325
¥ 4,981¥ 3,115
2,349(2,009)
2,418
(833)
192
(6)
92
¥ 5,318$ 27,662
19,113(17,001)
12,094(6,351)
2,657
—
2,657
$ 40,831(6) T he components of remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for
the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2021

2022

723
(7,111)¥ (6,388)$ 20,366(19,705)
$
661

2022

Prior service cost
Actuarial gain and loss
Total

¥ 2,484(2,404)¥80¥(7) The components of remeasurements of defined benefit plans included in accumulated other comprehensive income (before
tax effect) as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

2022

2021

2022

¥ (3,270)571¥ (2,699)¥ (5,755)
2,975¥ (2,780)$ (26,811)
4,680$ (22,131)(8) The breakdown of plan assets by major category as of March 31, 2022 and 2021 were as follows:
Debt securities
Deposit
Equity securities
General accounts at life insurance companies
Others
Total

2022

2021

36%
21
19
23
1
100%

37%
22
19
22
0
100%

Note: R etirement benefit trust established for the corporate pension plans is included and equivalent to 9% of total amount of plan assets as of March 31, 2022 and 9% of total
amount of plan assets as of March 31, 2021.

The long-term expected rates of return on plan assets has been determined as a result of consideration of both the portfolio allocation
at present and in the future, and long-term rates of return from multiple plan assets at present and in the future.
Fuji Electric Report Financials 202232

(9) The assumptions used in accounting for the defined benefit plans as of March 31, 2022 and 2021 were as follows:
Discount rates
Long-term expected rates of return on plan assets
Expected rates of salary increase

2022

2021

0.27% – 1.40%
mainly 2.0%
0.0% – 5.1%

0.27% – 1.40%
mainly 2.0%
0.0% – 5.1%

3. Information on defined contribution pension plans
Contributions of defined contribution pension plans for the years ended March 31, 2022 and 2021 were ¥4,786 million ($39,235 thousand)and ¥4,819 million, respectively.

4. Information on multi-employer pension plans
Contributions to multi-employer welfare pension plans accounted for by the same methods used for defined contributions plans for theyears ended March 31, 2022 and 2021 were ¥14 million ($122 thousand) and ¥15 million, respectively.

Note 12. Shareholders’ Equity
1. Shares issued and outstanding / Treasury stock
The Companies Act of Japan provides that an amount equal to 10% of the amount to be disbursed as distributions of capital surplus(other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the capital stock account. Such distributions
can be made at any time by resolution of the shareholders or by the Board of Directors if certain conditions are met.
Movements in shares outstanding and treasury stock during the years ended March 31, 2022 and 2021 were as follows:
Thousands of shares

Shares outstanding:Common stock
Total
Treasury stock:
Common stock
Total

March 31, 2021

Increasein the year

Decreasein the year

March 31, 2022

149,296
149,296————

149,296
149,296

6,457
6,457

3
3

0
0

6,461
6,461

Thousands of shares

Shares outstanding:Common stock
Total
Treasury stock:
Common stock
Total

March 31, 2020

Increasein the year

Decreasein the year

March 31, 2021

149,296
149,296————

149,296
149,296

6,454
6,454

3
3

0
0

6,457
6,457

The increases of treasury stock were due to purchase of shares of less than one voting unit and the decreases of treasury stock were
due to sales of shares at the request of shareholders who own less than one voting unit for the years ended March 31, 2022 and 2021.

2. Dividends(1) Dividends paid
For the year ended March 31, 2022
Resolution

Type ofsharesMeeting of the Board of
CommonDirectors on May 27, 2021
stock
Meeting of the Board of
CommonDirectors on October 28, 2021
stock

33

Fuji Electric Report Financials 2022

Total dividends(millions of yen)

Total dividends(thousands of
U.S. dollars (Note 3))

Dividends per
share (yen)Dividends per share(U.S. dollars (Note 3))¥ 6,427$ 52,686¥ 45.0$ 0.37

6,427

52,68645.0

0.37

Cut-off date

Effective date

March 31,
June 9,2021
2021
September 30, December 2,
2021
2021

For the year ended March 31, 2021
Type ofsharesResolution

Total dividends (millions of yen)

Meeting of the Board of
CommonDirectors on May 29, 2020
stock
Meeting of the Board of
CommonDirectors on October 29, 2020
stock

Dividends per share (yen)¥ 5,713

¥40.0

5,713

40.0

Cut-off date

Effective date

March 31,
June 29,2020
2020
September 30, December 1,
2020
2020

(2) Dividends with the cut-off date in the year ended March 31, 2022 and effective date in the year ending March 31, 2023
Type ofsharesResolution

Meeting of the Board of
Directors on May 26, 2022

Commonstock

Total dividends(millions of yen)

¥7,855

Total dividends(thousands of
U.S. dollars (Note 3))

Source ofdividends$64,393

Retained
Earnings

Dividends per
share (yen)Dividends per share(U.S. dollars(Note 3))Cut-off date

¥55.0

$0.45

March 31,2022

Effective dateJune 8,2022

Dividends with the cut-off date in the year ended March 31, 2021 and effective date in the year ended March 31, 2022
Type ofsharesResolution

Meeting of the Board of
Directors on May 27, 2021

Total dividends (millions of yen)

Source ofdividends¥6,427Retained
Earnings

Commonstock

Dividends per share (yen)Cut-off date

Effective date

¥45.0

March 31,2021

June 9,2021

Note 13. Research and Development Costs
Research and development costs charged to income for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Research and development costs

2022

2021

2022

¥ 33,756¥ 33,562$ 276,693

Note 14. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Salaries and wages
Retirement benefit expenses
Research and development costs

2022

2021

2022

¥ 83,890
4,512
29,416¥ 82,860
4,845
29,452$ 687,625
36,989241,121Note 15. Extraordinary Income, Net
Extraordinary income, net, for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2021

2022

280
40,864$ 1,469
84,915(552)(1,019)——(963)(25,727)¥ 12,883(5,186)(1,963)(2,748)(1,163)——$ 75,324

2022

Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Factory integration expenses
Loss on withdrawal from businessImpairment loss
Costs of corrective measures for product defects
Extraordinary income (loss), net¥

179
10,358

(632)
(239)
(335)
(141)
—
—
¥ 9,190¥

Note: The costs of corrective measures in response to defects in certain power semiconductors for certain customers.

Fuji Electric Report Financials 2022

34

Note 16. Income Taxes
1. The components of income taxes for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Current
DeferredIncome taxes

2022

2021

2022

¥ 21,846
2,085¥ 23,931¥ 21,423(3,482)¥ 17,941$ 179,066
17,097$ 196,163

The Company and its domestic consolidated subsidiaries are subject to corporate income tax, prefectural and municipal inhabitants’taxes and enterprise tax, based on income.

2. The significant components of deferred tax assets and liabilities as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Deferred tax assets
Net defined benefit liability
Inventories
Accrued employees’ bonuses
Investment securities
Tangible fixed assets
The investment deduction of the foreign consolidated subsidiaries
Other
Gross deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Unrealized gain on other securities
Investment securities
Other
Gross deferred tax liabilities
Net deferred tax assets (liabilities)

2022

2021

2022

¥ 20,003
8,272
7,583
6,735
2,147
—
8,857
53,597(9,107)44,490¥ 19,979
7,728
6,919
6,814
1,937
11,893
12,53767,807(21,409)46,398$ 163,960
67,80862,161
55,211
17,605—72,581
439,326(74,652)
364,674(23,444)(1,342)(7,998)(32,784)¥ 11,706(25,125)(1,358)(6,911)(33,394)¥ 13,004(192,170)(11,007)(65,548)(268,725)$ 95,949

3. T he reconciliation between the statutory income tax rate and the effective income tax rate for the years ended
March 31, 2022 and 2021 were as follows:
Statutory income tax rate
Tax credits
Tax rate difference of overseas consolidated subsidiaries
Valuation allowance
Permanent difference resulting from non-taxable income, including dividends received
Permanent difference resulting from expenses not deductible for income tax purposes
Consolidation adjustment for gain on sales of investment securities
Other
Effective income tax rate

35

Fuji Electric Report Financials 2022

2022

2021

30.6%
(3.2)
(3.1)
—
(0.3)
1.2
—
1.8
27.0%

30.6%
(4.0)
(3.3)
1.7
(0.4)
1.0
—
2.8
28.4%

Note 17. Consolidated Statements of Comprehensive Income
Amounts reclassified to profit (loss) in the current period that were recognized in other comprehensive income in the current or previous
periods and the tax effects for each component of other comprehensive income were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Valuation difference on available-for-sale securities:
Amount arising during the year
Reclassification adjustments
Before tax effectTax effect
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges:
Amount arising during the year
Before tax effectTax effect
Deferred gains or losses on hedges
Foreign currency translation adjustments:
Amount arising during the year
Before tax effectTax effectForeign currency translation adjustments
Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments
Before tax effectTax effectRemeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using equity method:Amount arising during the year
Reclassification adjustments
Share of other comprehensive income of associates accounted for using equity
methodTotal other comprehensive income

2022

2021

2022

¥ 3,627(9,504)(5,877)
1,655(4,222)¥ 57,286(40,843)
16,443(5,043)
11,400$ 29,736(77,916)(48,180)
13,565(34,615)

266
266
(81)
185

798
798
(245)
553

2,186
2,186
(670)
1,516

13,95913,95924
13,983

5,938
5,938
—
5,938

114,424
114,424
215
114,639

(781)
701
(80)
43
(37)

4,803
1,585
6,388
(1,969)4,419(6,404)
5,743
(661)
351
(310)

(56)
76

97
(312)

(467)
635

20
¥ 9,929(215)¥ 22,095

168$ 81,398

Note 18. Contingent Liabilities
Contingent liabilities as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Guarantees

2022

2021

2022

¥ 4,733¥ 6,505$ 38,797

Fuji Electric Report Financials 2022

36

Note 19. Leases
1. Finance lease transactions(1) Leased assets
Leased assets primarily consist of machinery and equipment and software.
(2) Depreciation method for leased assets
Depreciation method for leased assets is as stated in “f. Depreciation, 2) Leased assets” in “Note 2. Summary of Significant
Accounting Policies.”

2. Operating lease transactions
The minimum rental commitments under noncancellable operating leases as of March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Due within one year
Due after one year
Total

2022

2021

2022

¥ 2,350
6,275¥ 8,625¥ 2,444
8,107¥ 10,551$ 19,266
51,434$ 70,700

Note 20. Revenue Recognition
1. Disaggregation of revenue
Disaggregation of revenue by geographical region for the year ended March 31, 2022 was as follows:
Millions of yen

Year ended March 31, 2022

Japan
Asia and other areas
China
EuropeAmerica
Revenue from contracts
with customers

PowerElectronics
EnergyPower
Electronics
Industry

Semiconductors

Power
Generation

Food andBeverageDistribution

OthersSubtotal

Adjustments

Total¥173,894
46,96915,649436
3,611¥245,879
29,71324,621
7,091
7,006¥ 81,596
26,32154,564
12,324
4,002¥64,531
11,535
232
118
2,147

¥85,647
1,344
3,523
—
269

¥49,918
1,717
3,052
2
22

¥701,465
117,599
101,641
19,971
17,057¥(45,644)(749)(1,106)0(8)¥655,821
116,850
100,535
19,971
17,049¥240,559¥314,310¥ 178,807¥78,563¥90,783¥54,711¥957,733¥(47,507)¥910,226

Power
Electronics
EnergyPower
Electronics
Industry

Subtotal

Adjustments

Total

Thousands of U.S. dollars (Note 3)

Year ended March 31, 2022

Japan
Asia and other areas
China
EuropeAmerica
Revenue from contracts
with customers

37

Power
Generation

Food andBeverageDistribution

Others$1,425,362 $2,015,409 $ 668,827
384,988
243,526
215,733
128,271
201,819447,249
3,576
58,128101,017
29,60357,43032,805$528,947
94,5291,909
972
17,603$702,026
11,01328,87702,210$409,145 $5,749,716
14,136
963,925
24,999833,124
6
163,699160
139,811$(374,131) $5,375,585(6,140)957,785(9,067)824,057(1)
163,698(64)
139,747$1,971,800 $2,576,312 $ 1,465,631$643,960$744,126$448,446 $7,850,275$(389,403) $7,460,872

Fuji Electric Report Financials 2022

Semiconductors

2. Foundational information to understand revenue
The Companies account for revenue in accordance with l.
Recognition for Revenue and Costs in “Note 2. Summary of
Significant Accounting Policies.” The Companies’ methods forrecognition of revenue for goods and services in each segment
are as follows:
The Companies are engaged in a wide range of businessactivities, such as product development, production, sales, andservices.
The Companies combine two or more contracts entered intoat or near the same time with the same customer and account forthe contracts as a single contract if one or more of the following
criteria are met:a) The contracts are negotiated as a package with a single
commercial objective.
b) The amount of consideration to be paid in one contract
depends on the price or performance of the other contract.
c) T he goods or services promised in the contracts are a single
performance obligation.
When a contract is modified in the scope or price (or both)of a contract that is approved by the parties to the contract, theCompanies assess whether the contract modification is a separate
contract or as if it were a part of the existing contract.
When a contract includes two or more goods or services, theCompanies identify whether or not the performance obligation is
distinct and determine accounting units.
If the Companies act as an agent to arrange for goods orservices to be provided by the other party, the Companies
recognize revenue in the net amount of consideration that theentity retains after paying the other party the consideration
received in exchange for the goods or services to be provided bythat party.
The Companies assess the transaction price in an amountof consideration to which the Companies expect to be entitledin exchange for transferring the goods or services. If an amountof consideration varies, the Companies estimate the amount asa variable consideration and include it in the transaction price.
The Companies include in the transaction price some or all of anamount of variable consideration only to the extent that it is highly
probable that a significant reversal in the amount of cumulative
revenue recognized will not occur when the uncertainty associatedwith the variable consideration is subsequently resolved.
The Companies deduct rebates to be paid to a customer fromrevenue.
The Companies allocate the transaction price to eachperformance obligation on a relative stand-alone selling pricebasis. If a stand-alone selling price is not directly observable, theCompanies estimate the stand-alone selling price by forecasting
its expected costs of satisfying a performance obligation and thenadding an appropriate margin for that good or service.
The Companies recognize revenue when (or as) the
performance obligation is satisfied by transferring a promised
good or service to a customer. The Companies determine
at contract inception whether the Companies satisfy theperformance obligation over time or satisfy the performanceobligation at a point in time. The Companies satisfy a performanceobligation and recognize revenue over time, if one of the following
criteria are met.

a) The customer simultaneously receives and consumes thebenefits provided by the Companies’ performance as theCompanies perform.
b) The Companies’ performance creates or enhances an asset
that the customer controls as the asset is created or enhanced.
c) T he Companies’ performance does not create an asset withan alternative use to the Companies and the Companies havean enforceable right to payment for performance completed
to date.
If the above criteria are not met, the Companies recognize
revenue at a point in time when the goods of services aretransferred to a customer and the performance obligation issatisfied.
(1) Sales of standard goods
The Companies are engaged in sales goods and construction
contracts such as smart meters and power distribution andcontrol equipment in Power Electronics Energy segment,
inverters, FA components, measuring instruments and sensors inPower Electronics Industry segment, power semiconductors forindustrial and vehicles in Semiconductors segment and beveragevending machines, vending machines for food and other goods,
store equipment and currency handling equipment in Food andBeverage Distribution segment.
For these transactions, control of goods is transferred to acustomers at a point in time.
For domestic sales, the Companies recognize revenue upon
shipment because the period between shipment and transfer ofcontrol of goods to customer is a normal period. (Application ofshipping standards)
For domestic sales for which shipping standards are notapplied, the Companies recognize revenue upon delivery of
goods to a customer.
For export transactions, the Companies recognize revenue
upon delivery of goods to a customer specified in the trade terms.
(2) S ales of job-order production goods and contract works
The Companies are engaged in sales for goods and construction
contracts such as substations, energy management systems,
uninterruptible power systems (UPSs) and switchboards in thePower Electronics Energy segment, FA systems, drive control
systems, measuring and control systems, transport systems,
scrubber systems, radiation monitoring systems, electricity
construction, air conditioning equipment construction, andICT equipment and software in Power Electronics Industry
segment and geothermal power generation, hydroelectric power
generation, solar power generation, wind power generation, fuelcells, thermal power generation and nuclear power generationequipments in Power Generation segment.
For these transactions, the Companies apply the method thatrevenue is recognized over time by measuring progress toward
complete satisfaction of performance obligations because its
performance obligations are satisfied over time (the cost-based
input method is used in measuring the progress).

Fuji Electric Report Financials 202238

(3) Rendering of services
The companies are engaged in services such as maintenance,
inspection, repair, remodeling, and operation maintenance andmanagement, related to (1) and (2).
For these transactions, the Companies apply the method thatrevenue is recognized over time based on the estimate of progress
toward complete satisfaction of performance obligations because
its performance obligations are satisfied over time (the cost-based
input method is used in measuring the progress).
For maintenance contracts, etc., in which services are renderedto customers evenly over the contract period, the Companies
recognize revenue on a straight-line basis over the contract period.
There is no significant financing component because theCompanies expect, at contract inception, that the period between
when the Companies transfer promised goods or services to acustomer and when the customer pays for that goods or services
will be one year or less.

3. I nformation to understand the amount of revenue forthe current and subsequent fiscal year
(1) Contract assets and contract liabilities
Contract assets are the Companies’ right to considerationin exchange for goods or services that the Companies havetransferred to customers. Contract assets are transferred toaccounts receivable-trade when the right to consideration
become unconditional.
Contract liabilities are the Companies’ obligation to transfer
goods or services to customers for which the Companies havereceived consideration or the amount is due from the customers.
Notes for the ending balance of the notes receivable-trade,39

Fuji Electric Report Financials 2022

accounts receivable-trade and contract assets are omitted
because these balances are separately presented in the
consolidated balance sheet.
Revenue recognized in the current fiscal year that was includedin the contract liability balance at the beginning of the current fiscal
year was ¥20,377 million ($167,031 thousand).
In addition, revenue recognized in the current fiscal year fromperformance obligations satisfied (or partially satisfied) in theprevious periods is immaterial.
(2) T ransaction price allocated to the remaining performanceobligations
The aggregate amount of transaction price allocated to theperformance obligations that are unsatisfied (or partiallyunsatisfied) as of the end of the current fiscal year was ¥324,578
million ($2,660,483 thousand). Of this amount, Power Electronics
Energy, Power Electronics Industry and Power Generation havecontracts that recognize revenue over time.
The unsatisfied performance obligations by segments are
expected to be satisfied approximately within the following periods.
Power Electronics Energy: within 3 years
Power Electronics Industry: within 4 years
Power Generation: within 6 years
Regarding to the note for the “(2) Transaction price allocatedto the remaining performance obligations,” the Companies
applied the practical expedient and did not include contracts
that have an original expected duration of one year or less.
In addition, the above amounts do not include the material
estimates of variable consideration.

Note 21. Segment Information
1. Segment information(1) Outline of reporting segments
The Companies’ reporting segments are components for which
separate financial information is available and whose operating
results are reviewed regularly by the Board of Directors of theCompany in order to make decisions about resource allocationand to assess performance. The Company has businessheadquarters by products and services at its head office.
The business headquarters prepare comprehensively global
strategies related to their products and services and control theirbusiness activities.
Accordingly, the Companies have the following five reporting
segments, principally based on the business headquarters,that take into account the similarity of category and natureof products and services: Power Electronics Energy, PowerElectronics Industry, Semiconductors, Power Generation, andFood and Beverage Distribution. These segments except for
Semiconductors and Power Generation consist of 2 or morebusiness segments.
Also, the names of the Power Electronics Systems Energy,
Power Electronics Systems Industry and Electronic Devices
reporting segments have been changed to Power Electronics
Energy, Power Electronics Industry, and Semiconductors,
respectively. The change in the names of the reporting segments
does not affect the segment information.

Main products and services of each reporting segment consist of the following:
Reporting segments

Main products and services

Power Electronics Energy

Substations, energy management systems, smart meters, uninterruptible power systems (UPSs),
switchboards, power distribution and control equipment

Power Electronics Industry

Inverters, FA components, measuring instruments, sensors, FA systems, drive control systems,
measuring and control systems, transport systems, scrubber systems, radiation monitoring
systems, electricity construction, air conditioning equipment construction, ICT equipment andsoftware

Semiconductors

Power semiconductors for industrial and vehicles

Power Generation

Geothermal power generation, hydroelectric power generation, solar power generation, wind
power generation, fuel cells, thermal power generation

Food and Beverage Distribution

Beverage vending machines, vending machines for food and other goods, store equipment,
currency handling equipment(2) Calculation method of net sales, profit or loss, assets, liabilities and other items on each reporting segment
The accounting policies applied by each reporting segment are consistent with those described in “Note 2. Summary of Significant
Accounting Policies.” Segment profit or loss presented in segment information is based on operating income in the consolidated
statements of income. Intersegment sales and transfer are determined by market value.
(Application of “Accounting Standard for Revenue Recognition”)
As described in “s. Change in accounting policy,” the Companies
applied the “Accounting Standard for Revenue Recognition,” etc.
from the beginning of the current fiscal year, resulting in a change
to the accounting method for revenue recognition. The method for
calculating segment profit or loss has been changed as well.
As a result of this change, compared to the previous method,
net sales for the current consolidated fiscal year have decreasedby ¥722 million ($5,924 thousand) in Power Electronics Energy,¥630 million ($5,169 thousand) in Power Electronics Industry,¥858 million ($7,034 thousand) in Power Generation and ¥343

million ($2,814 thousand) in Food and Beverage Distribution.
Net sales have increased by ¥471 million ($3,869 thousand) in
Semiconductors and ¥17 million ($140 thousand) in Others. Also,
segment profit have decreased by ¥417 million ($3,425 thousand)in Power Electronics Energy, ¥113 million ($929 thousand) in
Semiconductors, ¥101 million ($829 thousand) in Food andBeverage Distribution and ¥31 million ($259 thousand) in Others.
Segment profit have increased by ¥87 million ($716 thousand) inPower Electronics Industry and ¥73 million ($599 thousand) inPower Generation.

Fuji Electric Report Financials 202240

(3) Information on net sales, profit or loss, assets, liabilities and other items by each reporting segment
Reporting segment information for the years ended March 31, 2022 and 2021 were as follows:
Millions of yen

Year ended March 31, 2022

Sales, profits or losses
and assets by reporting
segments
Net sales
Sales to third parties
Inter-segment sales andtransfers
Total sales
Segment profits (losses)
Segment assets
Other items
Depreciation andamortization
Investments for companies
applied equity method
Capital expenditures

Power
Electronics
EnergyPower
Electronics
Industry

Semiconductors

Power
Generation

Food andBeverageDistribution

OthersTotal¥ 237,773¥ 298,267¥ 174,249¥ 78,487¥ 90,191¥ 31,259

2,786
240,559¥ 21,365¥ 218,289

16,043314,310¥ 23,676¥ 304,636

4,558
178,807¥ 27,136¥ 267,172

76
78,563¥ 3,124¥ 79,490

592
90,783¥ 3,007¥ 75,047

¥

¥

7,357

¥ 20,827¥ 1,291¥ 12,043¥ 5,643¥ 1,851¥ 10,360¥—¥ 39,543¥—¥ 1,047

Power
Electronics
EnergyPower
Electronics
Industry¥ 206,559

5,958

Adjustments

Consolidated¥ 910,226¥¥ 910,226

23,45254,711¥ 2,838¥ 35,033

47,507
957,733¥ 81,146¥ 979,667(47,507)—(47,507)910,226¥ (6,311) ¥ 74,835¥ 137,445 ¥ 1,117,112¥ 2,537¥904¥ 38,874

¥

1,095

¥

39,969¥—¥ 1,149

¥
¥

—
625

¥ 13,894¥ 58,367

¥
¥

—
1,680

¥
¥

13,89460,047—

Millions of yen

Year ended March 31, 2021

Sales, profits or losses
and assets by reporting
segments
Net sales
Sales to third parties
Inter-segment sales andtransfers
Total sales
Segment profits (losses)
Segment assets
Other items
Depreciation andamortization
Investments for companies
applied equity method
Capital expenditures

41

Semiconductors

Power
Generation

Food andBeverageDistribution

OthersTotal¥ 332,294¥ 154,033¥ 80,114¥ 76,300¥ 26,627

2,670
209,229¥ 14,018¥ 203,048

13,590345,884¥ 21,781¥ 307,864

3,451
157,484¥ 17,652¥ 215,624

238
80,352¥ 2,517¥ 67,052

256
76,556¥ (5,280)¥ 82,411

¥

5,879

¥

6,660

¥ 18,049¥ 1,263¥ 10,995¥ 7,380

¥
¥

1,729
7,042

¥
—
¥ 21,507¥—¥ 1,136

Fuji Electric Report Financials 2022

Adjustments

Consolidated¥ 875,927¥¥ 875,927

26,06852,695¥ 2,215¥ 37,390

46,273922,200¥ 52,903¥ 913,389(46,273)—(46,273)875,927¥ (4,308) ¥ 48,595¥ 138,563 ¥ 1,051,952¥ 2,519¥863¥ 35,233

¥

961

¥

36,194¥—¥ 2,131

¥
¥

—
499

¥ 12,724¥ 39,695

¥
¥

—
1,297

¥
¥

12,72440,992—

Thousands of U.S. dollars (Note 3)
PowerElectronics
EnergySemiconductors

Power
Generation

Food andBeverageDistribution

OthersTotal$ 1,948,963 $ 2,444,820 $ 1,428,272$ 643,339$ 739,278$ 256,201$ 7,460,873 $

22,838131,49337,3601,971,801 2,576,313 1,465,632$ 175,123 $ 194,068 $ 222,426$ 1,789,258 $ 2,497,022 $ 2,189,937

621
643,960$ 25,613$ 651,560

4,849
744,127$ 24,648$ 615,140

192,242448,443$ 23,259$ 287,149

389,403(389,403)—
7,850,276(389,403) 7,460,873$ 665,137 $ (51,730) $ 613,407$ 8,030,066 $ 1,126,597 $ 9,156,663$

48,843 $60,308 $ 170,721$ 10,583$ 20,795$

7,391$ 318,641 $

8,976 $ 327,617$$

98,715 $46,259 $15,176 $—84,926 $ 324,124

$
$

$
$

$
$

—
5,104

$ 113,891 $$ 478,426 $— $ 113,891
13,764 $ 492,190

Year ended March 31, 2022

Sales, profits or losses
and assets by reporting
segments
Net sales
Sales to third parties
Inter-segment sales andtransfers
Total sales
Segment profits (losses)
Segment assets
Other items
Depreciation andamortization
Investments for companies
applied equity method
Capital expenditures

Power
Electronics
Industry

—
8,589

—
9,424

Adjustments

Consolidated— $ 7,460,873

Notes: 1. O thers segment consisted of business segments not attributable to reporting segments and included financial services, real estate operations, insurance agency services,travel agency services, printing and information services, etc.
2. The adjustments for segment information above were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Corporate expense*
Elimination of intersegment sales
Total

2022

2021

2022

¥ (6,270)¥ (4,314)$ (51,397)

(41)

6

(333)

¥ (6,311)¥ (4,308)$ (51,730)* Corporate expense mainly consisted of administration cost of the Company.
Thousands of
U.S. dollars (Note 3)

Millions of yen

Corporate assets*

2022

2021

2022

¥ 288,299¥ 276,445$ 2,363,112

Elimination of intersegment transactions
Total(150,855)(137,882)(1,236,515)¥ 137,444¥ 138,563$ 1,126,597* Corporate assets mainly consisted of invested cash surpluses (cash and cash equivalents), long-term invested assets (investment securities), assets relating toadministration department and assets of a financing subsidiary company.
3. Segment profits (losses) were reconciled to operating income (loss) in the consolidated statements of income.

Fuji Electric Report Financials 2022

42

2. Related Information
Related information for the years ended March 31, 2022 and 2021 were as follows:
Geographic information(a) Sales
Thousands of
U.S. dollars (Note 3)

Millions of yen

Japan
Asia (except for China), Others
China
EuropeAmerica
Consolidated

2022

2021

2022

¥ 655,821
116,850
100,535
19,971
17,049¥ 910,226¥ 654,020
108,207
83,874
16,512
13,314¥ 875,927$ 5,375,586
957,783
824,058
163,699
139,747$ 7,460,873

Note: Net sales information above is based on customer location.

(b) Tangible fixed assets
Thousands of
U.S. dollars (Note 3)

Millions of yen

Japan
Asia (except for China), Others
China
EuropeAmerica
Consolidated

2022

2021

2022

¥ 191,526
24,085
16,779612
673¥ 233,675¥ 168,724
25,44914,327605653¥ 209,758$ 1,569,888
197,400
137,541
5,022
5,523$ 1,915,374

3. Information on impairment loss of fixed assets by each reporting segment
Information on impairment loss of fixed assets by each reporting segment for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Power Electronics Energy
Power Electronics Industry
Semiconductors
Power Generation
Food and Beverage Distribution
Others
Total

2022

2021

2022

¥—
—
—
—
—
—
¥—

¥ 801
162
—
—
—
—
¥ 963

$—
—
—
—
—
—
$—

4. Information on amortization of goodwill and unamortized balance by each reporting segment
Information on amortization of goodwill and unamortized balance by each reporting segment for the year ended March 31, 2022 and2021 were as follows:
Millions of yen

Year ended March 31, 2022

Power Electronics
EnergyPower Electronics
Industry

Semiconductors

Power Generation

Food and Beverage
Distribution

OthersConsolidated

Amortization
Balance as of March 31

¥—
¥—

¥ 817
¥ 5,934

¥ 11
¥ 38

¥—
¥—

¥—
¥—

¥—
¥—

¥ 828
¥ 5,972

Year ended March 31, 2021

Power Electronics
EnergyPower Electronics
Industry

Semiconductors

Power Generation

Food and Beverage
Distribution

OthersConsolidated

Amortization
Balance as of March 31

¥—
¥—

¥ 843
¥ 6,294

¥ 10
¥ 44

¥—
¥—

¥—
¥—

¥—
¥—

¥ 853
¥ 6,338

Year ended March 31, 2022

Power Electronics
EnergyPower Electronics
Industry

Semiconductors

Power Generation

Food and Beverage
Distribution

OthersConsolidated

Amortization
Balance as of March 31$—$—$ 6,698$ 48,647

$ 89
$ 305

$—
$—

$—
$—

$—
$—

$ 6,787$ 48,952

Millions of yen

Thousands of U.S. dollars (Note 3)

5. Information on gain on negative goodwill by each reporting segment
None

43

Fuji Electric Report Financials 2022

Note 22. Information on Transactions with Related Parties
For the year ended March 31, 2022
None

Note 23. Business Combinations
For the year ended March 31, 2022
This disclosure is omitted due to the immateriality.

Note 24. Asset Retirement Obligations
Asset retirement obligations recorded on the consolidated balance sheets
1. Outline of asset retirement obligations
The Companies record asset retirement obligations related to the expenses for removing asbestos from company-owned buildings
upon their dismantlement and the obligations to restore head offices, sales offices and other premises to their original condition upon
termination of their lease contracts.
Regarding some of the obligations to restore head offices, sales offices and other premises to their original condition, the Companies
estimate nonrecoverable amounts of deposits for those premises and record the portion attributable to the current fiscal year as
expenses, instead of recording asset retirement obligations.

2. Calculation method of asset retirement obligations
In calculating the amounts of asset retirement obligations, the Companies estimate a period of use between 9 and 49 years and use a
discount rate equivalent to the interest rate of government bonds corresponding to the use period (0.03% to 2.3%).

3. Changes in the total amounts of asset retirement obligations
Changes in the total amounts of asset retirement obligations for the years ended March 31, 2022 and 2021 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Balance at the beginning of the year
Change in estimate
Adjustment due to passage of time
Decrease due to fulfillment of obligations
Balance at the end of the year

2022

2021

2022

¥ 1,900642
6(25)¥ 2,523¥ 1,896—
6(2)¥ 1,900$ 15,578
5,262
55
(211)
$ 20,684

Note 25. Amounts Per ShareInformation on amounts per share for the years ended March 31, 2022 and 2021 was as follows:Yen

Net assets per share
Net income per share

U.S. dollars (Note 3)

2022

2021

2022

¥ 3,310.80
410.68¥ 2,919.34
293.52$ 27.138
3.366

Notes 1. Diluted net income per share in 2022 and 2021 is not disclosed because there is no potential common stock that has a dilutive effect.
2. A
 s described in “t. Change in accounting policy,” the Companies applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 issued on March
31, 2020), etc. from the beginning of the current fiscal year. In addition, the Companies have applied transitional treatment stipulated in the proviso of paragraph 84 of“Accounting Standard for Revenue Recognition.” As a result, net assets per share increased by ¥10.57 and net income per share decreased by ¥1.39.

Fuji Electric Report Financials 2022

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Independent Auditor’s Report

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Fuji Electric Report Financials 2022

Fuji Electric Report Financials 2022

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Fuji Electric Report Financials 2022

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Fuji Electric Report Financials 2022

Fuji Electric Report Financials 2022

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

00A9-E-0015d Published in Japan 2022.9