Fuji Electric Report Financials

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..........................................................42

01

Fuji Electric Report Financials 2020

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

Millions of yen

Years ended March 31

2016

2017

2018

2019

2020

2020

Net sales¥ 813,550¥ 837,765¥ 893,451¥ 914,915¥ 900,604$ 8,338,926

Japan

597,757

632,723

674,744682,503679,719

6,293,695

Operating Results

Overseas215,793

205,042

218,707

232,412220,885

2,045,231

Operating income

45,00644,70955,962

59,97242,515

393,658

Net Income Attributable to Owners of Parent

30,64440,97837,76340,267

28,793

266,606¥ 35,949¥ 34,910¥ 35,620¥ 33,669¥ 34,457$ 319,047

27,65027,14926,46543,33848,208446,377

29,72329,44530,15130,90632,319299,256

Cash flows from operating activities¥ 48,450¥ 58,185¥ 53,146¥ 54,949¥ 46,087$ 426,737

Cash flows from investing activities(19,410)

9,748(14,550)(21,448)(27,621)(255,752)

R&D and Capital Investment
R&D expenditures
Plant and equipment investment*

2

Depreciation and amortization*3
Cash Flows

Free cash flow

29,04067,934

38,59633,501

18,466

170,984

Cash flows from financing activities(31,567)(56,082)(46,887)(38,172)

16,918

156,646

Total assets*4¥ 845,378¥ 886,663¥ 914,744¥ 952,659¥ 996,827$ 9,229,885

Total net assets

260,980

323,863366,546

392,061

406,0023,759,282

Shareholders’ equity

230,399

291,216

330,636

352,922

365,620

3,385,368

Net interest-bearing debt

189,374

141,578

130,177

124,850

153,617

1,422,387

Interest-bearing debt

220,213

183,465

163,507

153,985

217,364

2,012,630

Ratio of operating income to net sales (%)

5.5

5.3

6.3

6.6

4.7

—

ROE (Return on equity) (%)

11.8

15.7

12.1

11.8

8.0

—

ROA (Return on assets) (%)*4

3.5

4.7

4.2

4.3

3.0

—

Equity ratio (%)*4

27.3

32.8

36.1

37.0

36.7

—

Net debt-equity ratio (times)*5

0.8

0.5

0.4

0.4

0.4

—

Debt-equity ratio (times)*6

1.0

0.6

0.5

0.4

0.6

—

Financial Position

Financial Indicators

Per Share Data*7
Net income

Yen

¥

42.90

¥

U.S. dollars*1

57.36¥ 264.34¥ 281.89¥ 201.57$

1.866

Net assets

322.52407.682,314.50

2,470.65

2,559.60

23.700Cash dividends

10.00

11.00

14.00

48.00

80.00

0.741

Employees

26,50826,50327,00927,41627,960—Japan

17,635

17,716

17,704

17,647

17,681—

Overseas

8,873

8,787

9,305

9,769

10,279—OthersHeadcount*1 T he U.S. dollar amounts represent the arithmetic results of translating yen into dollars at ¥108 = U.S. $1, the approximate exchange rate at March 31, 2020.
*2 P lant and equipment investment is the total of investment in tangible fixed assets, including acquisition amounts for lease contracts.
*3 D epreciation 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 N
 et debt-equity ratio is the ratio of net interest-bearing debt (interest-bearing debt + lease obligations – cash and cash equivalents) to shareholders’ equity.
*6 Debt-equity ratio is the ratio of interest-bearing debt to shareholders’ 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
per share 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 forfiscal 2018 amounted to ¥80 per share, including adjusted interim dividend of ¥40 per share and year-end dividend ¥40 per share.

Fuji Electric Report Financials 202002

Management’s Discussion and Analysis
Overview

Financial Performance
Net Sales
Net sales in fiscal 2019 decreased by 1.6% year on year, to¥900,604 million.
In the Electric Devices and Power Generation segment
sales increased year on year. However, sales in PowerElectronics Systems Energy, Power Electronics Systems
Industry and Food and Beverage Distribution segment
decreased year on year. Domestic sales decreased by 0.4%,
to ¥679,719 million. Overseas sales decreased by 5.0%, to¥220,885 million.
The ratio of overseas sales decreased by 0.9 percentage
point, to 24.5% year on year.

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. Under the plan, we are promoting various
growth strategies. These include focusing resources on
growth fields—namely, power electronics systems and power
semiconductors—while expanding our overseas business.
The operating environment in fiscal 2019 saw ongoingcurtailment of investments, especially in China, resulting mainly
from protracted U.S.-China trade friction that continued fromthe previous fiscal year, as well as bearish exports of machine
tools from Japan due to slowdowns in overseas markets.
Against this backdrop, the global COVID-19 pandemic, which
struck during the fourth quarter, greatly restricted economic
activities as unprecedented rules were enforced, including
factory closures and limitations on people’s movement. The
result was a severe environment caused by a growing sense of
uncertainty.
To help prevent the spread of COVID-19, the Company
asked employees working at the head office, branches, andother business sites in Japan to work from home wheneverpossible. Employees who cannot work from home, including
those working at production sites, were asked to take steps
to prevent the spread of the virus through various measures,such as adopting staggered work hours and avoiding confined
spaces, large gatherings, and close interactions. Overseas, we
suspended operations at some factories at the instruction of
local governments.

Net Sales /Ratio of Overseas Sales to Net Sales(Billions of yen)(%)

1,000.0

813.6
750.0 26.5

837.8

24.5

893.5

914.9 900.6

40

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)

25.4

24.5

30

6.3

20

5.3
56.0

60.0

45.0
500.0

(%)

80.0

5.5
24.5

Cost of Sales, Selling, General and Administrative
Expenses and Operating Income
The cost of sales was ¥680,068 million,which is the same level
as the previous year, and the ratio of cost of sales to net sales
increased by 1.2 percentage point, to 75.5%.
Selling, general and administrative expenses increasedby 1.7% year on year, to ¥178,021 million. The ratio of selling,
general and administrative expenses to net sales increased by
0.6 percentage point, to 19.8%.
Operating income decreased by ¥17,457 million year on
year, to ¥42,515 million, due to a decrease in net sales andproduction volumes, impact of foreign exchange rate, andinvestment in the power semiconductor business, partially
offset by cost reduction. The operating margin decreased by
1.8 percentage point, to 4.7% year on year.

6.6

60.0

44.7

7
6

4.7
42.5

5

60.0

50.0

4.2

3.8
41.0

40.0

5

4.4

4

37.8

40.3

30.6

4

40.0

(%)

4.9

3.2
28.8

30.0
3

250.0

10

2

20.0

1
0

16/3

17/3

18/3

19/3

20/3

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

03

Fuji Electric Report Financials 2020

0

0

16/3

17/3

18/3

19/3

20/3

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

0

3

2
20.0
1

10.0

0

16/3

17/3

18/3

19/3

20/3

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) decreased by ¥1,509 million year
on year,to ¥1,998 million. This decrease was primarily due to aforeign exchange loss of ¥1,326 million, compared to a foreignexchange gain of ¥89 million yen in the previous year.
As a result, ordinary income decreased by ¥18,966 million
to 44,513 million.
Extraordinary Income (Loss), Income before Income
Taxes and Non-Controlling Interests
Extraordinary income totaled ¥2,771 million and included
a gain on sales of noncurrent assets and a gain in sales ofinvestment securities. This represented a ¥320 million year-onyear increase due to an increase in gain on sales of investment
securities, which were partially offset by a reduction in foreign
currency translation adjustments reversal gains.
Extraordinary loss totaled ¥3,423 million and included aloss on disposal of noncurrent assets, a loss on devaluationof investment securities and a loss on compensation fordamage. This represented a ¥220 million year-on-year
decrease due to the impairment loss recorded in the previous
fiscal year, partially offset by an increased devaluation of
investment securities.
Net Income
Income before income taxes decreased by ¥18,427 million year
on year, to ¥43,860 million. After subtracting ¥11,989 million
in income taxes (the net of income taxes-current and income
taxes-deferred) and ¥3,078 million in net income attributable
to non-controlling interests, net income attributable to ownersof parent decreased by ¥11,474 million from the previous fiscal
year, to ¥28,793 million.

Results by Business Segment
Power Electronics Systems—Energy Solutions
Net sales: ¥218,013 million (a decrease of 2.7% year on year)
Operating income: ¥12,322 million (a decrease of ¥4,507
million year on year)
Net sales and operating income decreased year on year
mainly due to a decline in demand for the ED&C components
business, partially offset by strong demand in facility / powersource system business.
• In the energy management business, net sales and operating
income decreased year on year primarily due to the lower
demand for smart meters and the impact of large-scaleorders for overseas in the previous fiscal year, partially offset
by strong demand in power supply equipment for industry
and railways.
• In the facility / power source system business, net sales
and operating income increased primarily driven byincreased large-scale orders from overseas, partially offset
by the impact of large-scale domestic projects in theprevious fiscal year.
• In the ED&C components business, sales decreased yearon-year due to a decrease in demand from machine set
manufacturers and operating income decreased due to adecrease in demand and an increase in costs associatedwith product defects.
Orders received in fiscal 2019 (Power Electronics
Systems—Energy Solutions segment of Fuji Electric Co., Ltd.,
non-consolidated-basis) totaled ¥132.6 billion.
Power Electronics Systems—Industry Solutions
Net sales: ¥317,482 million (a decrease of 1.6% year on year)
Operating income: ¥16,547 million (a decrease of ¥2,870
million year on year)
Net sales and operating income decreased due to weak
demand in the factory automation business, caused by the
impact of U.S.-China trade friction and COVID-19, and theimpact of large-scale orders in the equipment construction

Net Sales by Segment

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

1,000.0

914.9
62.2

800.0

600.0

900.6

80.0

60.8

Others

107.0

109.9

Power Generation

70.0

113.6

104.4

Food and Beverage Distribution

60.0

137.3

137.4

Electronic Devices

50.0

322.5

317.5

Power Electronics Systems Industry

60.0

2.8
4.8
5.8

42.5

15.6

40.0
400.0

30.0

0

224.1

218.0

Power Electronics Systems Energy

-51.9

-47.5

Adjustments

OthersPower Generation
Food and Beverage Distribution
Electronic Devices

16.5

Power Electronics Systems Industry

19.4

20.0

200.0

2.7
2.3
3.8
9.7

10.0

16.8

0

-5.2

12.3

Power Electronics Systems Energy-4.9

Adjustments-10.0-200.0

19/3

20/3

19/3

20/3

Fuji Electric Report Financials 202004

business in the previous year. These decreases were partially
offset by strong demand in IT solutions business.
• In the factory automation business, net sales and operating
income decreased due to weak demand mainly indomestic and Chinese markets for low-voltage invertersand FA components, affected by U.S.-China trade friction.
In addition, these decreases were attributable to thesuspension of operations in China, caused by COVID-19 anddecreased demand in Asia and Europe.
• In the social solutions business, net sales decreased year on
year primarily due to large-scale orders in the previous fiscal
year, but operating income increased due to cost reductions.
• In the equipment construction business, net sales decreased
mainly due to large-scale orders in the previous fiscal year,
but operating income increased due to cost reductions.
• In the IT solutions business, net sales and operating income
increased year on year due to increases in orders from theacademic sector and the public sector.
Orders received in fiscal 2019 (Power Electronics Systems
Industry segment of Fuji Electric Co., Ltd., non-consolidatedbasis) totaled ¥162.3 billion.
Electronic Devices
Net sales: ¥137,421 million (the same level as the previous year)
Operating income: ¥9,718 million (a decrease of ¥5,905 million
year on year)• In the electronic devices business, net sales were the samelevel as the previous year due to lower demand in industrial
fields, primarily in the Chinese market caused by the impactof U.S.-China trade friction and COVID-19, and the impact offoreign exchange, partially offset by increased demand for
power semiconductors for electric vehicles (xEV). Operating
income decreased due to an increase in expenses forinvestment relating to power semiconductor production
capacity enhancement for electric vehicles (xEV), foreignexchange effects, and product repair costs.
Orders received in fiscal 2019 (Electronic Devices segmentof Fuji Electric Co., Ltd., non-consolidated-basis) totaled¥94.8 billion.
Food and Beverage Distribution
Net sales: ¥104,413 million (a decrease of 8.1% year on year)
Operating income: ¥3,842 million (a decrease of ¥1,914 million
year on year)• In the vending machine business, net sales and operating
income decreased year on year primarily due to weak
demand in domestic and Chinese market and extension of
the installation plan in those areas, caused by the impact of
COVID-19.
• In the store distribution business, net sales decreased due
to weak demand, affected by COVID-19, for store equipmentused in convenience stores. However, operating income
increased, driven by cost reduction.
Orders received in fiscal 2019 (Food and Beverage
Distribution segment of Fuji Electric Co., Ltd., nonconsolidated-basis) totaled ¥95.4 billion.
Power Generation
Net sales: ¥109,891 million (an increase of 2.7% year on year)
Operating income: ¥2,298 million (a decrease of ¥2,452 million
year on year)• In the power generation plant field, net sales increased
year on year due to large-scale orders for thermal power
generation facilities. However, operating income decreased
year on year as a result of an unfavorable sales mix and anincrease in expenses for large overseas projects.
Orders received in fiscal 2019 (Power and New Energy
segment of Fuji Electric Co., Ltd., non-consolidated-basis)
totaled ¥74.8 billion.
Others
Net sales: ¥60,846 million (a decrease of 2.2% year on year)
Operating income: ¥2,697 million (a decrease of ¥71 million
year on year)

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

35.9

(%)

34.9

35.6

8

33.7

40.0

20.0

3.7

3.8

500.0

50

366.5

400.0

29.7

4.0

30.0 27.7

30.2
29.4
27.1
26.5

30.9

32.3

2

16/3

17/3

18/3

19/3

20/3

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

05

Fuji Electric Report Financials 2020

406.0
40

323.9
300.0 261.0

200.0

11.8

0

392.1

30

4
20.0

10.0

(%)

43.3
6

4.2

50.0

34.5

30.0

4.4

48.2

0

10.0

0

15.7

20

12.1

11.8

100.0

16/3

17/3

18/3

Plant and Equipment Investment
Depreciation and Amortization

19/3

20/3

0

16/3

17/3

Total Net Assets (left)
ROE (right)

18/3

19/3

8.0

20/3

10

0

In the Power Electronics Systems Industry segment, wemade investments to streamline production lines at the Suzuka
Factory and Tokyo Factory. These were aimed at increasing
in-house production and thus enhancing the competitivenessof our inverters and measuring instruments.
In the Electronic Devices segment, we continued making
large-scale investments in the Yamanashi Factory, as we didin the previous year, aimed at increasing production capacityof power semiconductor chips, mainly for automobiles.
We also made investments for back-end processes in ourdomestic and overseas factories to increase production of
in-vehicle pressure sensors and large-capacity IGBT modules
for power converters.
In the Food and Beverage Distribution segment, we invested
in streamlining production at the Mie Plant using the IoT toestablish an integrated production line for vending machines.

R&D Investment and Plant andEquipment Investment
R&D
In order to establish a foundation as a sustainablegrowth company, Fuji Electric is focused on research anddevelopment activities that create solutions producing value
for customers by utilizing the synergies of power electronics
technology and power semiconductor technology as well as
combining competitive components, systems and fundamental
technologies.
In addition, the company works to develop new products
in line with its business strategy, localize overseas productdevelopment, enhance theme exploration through utilizing
technology marketing, and improve development productivity.
The Company’s R&D expenditures in fiscal 2019 totaled¥34,457 million.
As of March 31, 2020, the number of industrial property
rights which were registered in Japan and overseas and held
by Fuji Electric stood at 12,956.

Financial Position
Total Assets
Total assets on March 31, 2020, stood at ¥996,827 million,
an increase of ¥44,168 million from the end of the previous
fiscal year.

Plant and Equipment Investment
Plant and equipment investment, including leases,amounted to ¥48,208 million in fiscal 2019. These weredirected toward increasing production capacity andstreamlining production lines, mainly for power electronics
systems and electronic devices.
Major investments were as follows.
In the Power Electronics Systems Energy segment, we
completed construction of a new production facility at Fuji
Electric Manufacturing (Thailand) Co., Ltd. aimed at expanding
our systems business in Asia. We also started construction ofan engineering center at the Chiba Factory to strengthen our
lineup of energy-related products.

Total Assets / ROA(Billions of yen)
1,000.0

845.4

886.7

914.7

952.7

996.8

(%)
10

Current Assets and Current Liabilities
Total current assets increased ¥22,596 million from theprevious fiscal year-end, to ¥595,692 million. This increase is
primarily due to an increase of ¥34,612 million in cash and cash
equivalents and ¥11,141 million in inventories, partially offset by adecrease of ¥14,327 million in trade receivables.
Total current liabilities decreased ¥2,734 million from theprevious fiscal year-end, to ¥423,160 million. This decrease is
primarily due to a decrease of ¥9,717 million in current portionof long-term debt and ¥16,755 million in trade payables, partially
offset by an increase of ¥41,263 million in short-term debt.

Equity Ratio

Interest-bearing Debt /Debt-equity Ratio(%)(Billions of yen)
40.0

36.1

37.0

36.7

300.0

3

32.8

800.0

8

600.0

6

30.0

400.0

4.7

4.2

4.3

183.5
163.5

200.0

1.0

4

2

16/3

17/3

Total Assets (left)
ROA (right)

18/3

19/3

2

154.0

20.0

3.0

100.0

0

217.4

220.2

27.3
200.0

3.5

(Times)

20/3

0

0.6

10.0

0

16/3

17/3

18/3

19/3

20/3

0

16/3

17/3

0.5

18/3

0.4

19/3

0.6

20/3

1

0

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

Fuji Electric Report Financials 202006

Noncurrent Assets
Total noncurrent assets increased by ¥21,572 million year on
year, to ¥401,135 million on March 31, 2020. Net property,
plant and equipment were ¥201,892 million, an increase of¥19,768 million year on year. Total investments and otherassets amounted to ¥199,243 million, an increase of ¥1,804
million year on year. This increase is mainly due to a ¥7,208
million increase in other investments and other assets, partially
offset by a decrease of ¥5,060 million, due to the sale.

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥46,087
million, compared with ¥54,949 million in the previous fiscal
year. Major factors of cash increase included income before
income taxes and a decrease in trade receivables. Major
factors of cash decrease included payment of income taxes,
an increase in inventories and a decrease in trade payables.
Cash flows from operating activities decreased by ¥8,862
million year on year.

Long-term Liabilities
Total long-term liabilities increased by ¥32,961 million fromthe previous fiscal year-end, to ¥167,665 million. This increaseis mainly due to an increase in long term debt and leaseobligations by ¥13,056 million and ¥14,049 million, respectively.

Cash Flows from Investing Activities
Net cash used in investing activities was ¥27,621 million,
compared with net cash used in investing activities of ¥21,448
million, in the previous fiscal year. This was primarily a result of
the purchase of property, plant and equipment.
Net cash used in investing activities increased by ¥6,173
million year on year.

Net Assets
Net assets as of March 31, 2020, totaled ¥406,002 million, an
increase of ¥13,941 million from the previous fiscal year-end.
This increase was mainly attributable to an increase of ¥17,365
million in retained earnings. As a result, the equity ratio stoodat 36.7%, a decrease of 0.3 percentage points year on year.
Debt
Interest-bearing debt as of the fiscal year-end totaled ¥217,364
million, an increase of ¥63,379 million year on year. The ratio ofinterest-bearing debt to total assets was 21.8%, an increase of
5.6 percentage points year on year.

Cash Flows from Financing Activities
Net cash provided by financing activities was ¥16,918 million,
compared with net cash used in financing activities of ¥38,172
million, in the previous fiscal year. This was primarily due to anincrease in short-term loans payable.
Net cash provided by financing activities increased by¥55,090 million year on year.

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 ¥18,466 million, a ¥15,035 million
decrease from the previous fiscal year’s positive free cash flowof ¥33,501 million.

Cash Flows

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

80.0
60.0

80.0

48.5

58.2

53.1

54.9

40.0

60.0

41.9

0

40.0

-14.6

-20.0 -19.4

-21.4

-31.6
-40.0

-56.1

-60.0
16/3

17/3

-46.9

18/3

-38.2

19/3

Fuji Electric Report Financials 2020

30.8
29.0

38.6
33.5
33.3
29.1

-27.6

18.5

20.0

20/3

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

07

63.7

16.9

9.7

20.0

-80.0

67.9

46.1

0

16/3

17/3

18/3

Free Cash Flow
Cash and Cash Equivalents

19/3

20/3

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 (August 6, 2020).
(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 considers protection of the global environment
to be an important management priority and announced
its support for the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). In addition,
we created our Environmental Vision 2050, which aims to
make efforts across the supply chain aimed at realizing a
low-carbon society, recycling-oriented society, and a society
in harmony with nature. In these and other ways, we areadvancing efforts to realize a sustainable society through ourenergy- and environment-related businesses and continuously
disseminating such information. However, stricter enforcementof the Paris Agreement and other environmental regulations, aswell as assessments by ESG evaluation institutions may lead tostronger criticism of part of Fuji Electric’s operations (coal-fired
power generation business), which may affect its businessperformance and financial 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 restrictions arefurther 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) B usiness 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
power electronics systems and power generation. In order tosecure appropriate profits in each project, we work to improve
the accuracy of our quotations at the time of order receipt
and strengthen project management afterwards. After receipt
of orders, however, any number of events may affect ourbusiness performance and financial position. These include
unanticipated specification changes, process delays, andprofitability declines due to natural disasters and the like.

Fuji Electric Report Financials 202008

(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 technologicaladvances, however, we may lose our advantage over othercompanies, and product development may not proceed
as planned, making it impossible to launch new product at
the right time. Any of these events may affect our businessperformance and financial 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 2020

(8) Quality Assurance
Fuji Electric has established a quality control system forthe products it manufactures and sells and strives toensure high quality standards. Although we have made thenecessary insurance arrangements, an unprecedented event
could cause quality-related problems to arise, which may
affect our business performance and financial position. In
addition, we have received reports of a defect in some ofour power semiconductors used in specific fields. We are
currently examining the degree of potential risk and will makeappropriate disclosures if we identify any significant impact on
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 toensure rigorous compliance with laws and regulations. We also
have a compliance program that clearly identifies roles andresponsibilities 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 thelike may have an impact on our business performance andfinancial 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 of damages,
which, depending on the nature of the decision, may have an
impact on our business performance and financial 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 fireand disaster 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 our business performance and financial position.
These include large-scale disasters or accidents at/near ourbusiness sites, which could cause damage of production
equipment, interruption of operations, and delays in productshipments.
(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, 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 202010

Consolidated Balance Sheets
As of March 31, 2020 and 2019

Thousands of
U.S. dollars(Note 3)

Millions of yen

2020

2019

2020

¥ 63,746
327
294,504(2,597)
188,11351,599595,692¥ 29,134
169
308,831(2,084)
176,972
60,074573,096$ 590,243
3,035
2,726,889(24,053)
1,741,788
477,771
5,515,673

Less accumulated depreciation
Net Property, Plant and Equipment

35,504
251,118
216,080
95,8605,045
1,391
604,998(403,106)
201,892

35,032
243,822
212,587
76,2189,211—
576,870(394,746)
182,124

328,741
2,325,170
2,000,749
887,599
46,71812,8575,601,834(3,732,460)
1,869,374

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 11)
Deferred tax assets (Note 16)
Other investments and other assets (Note 19)
Allowance for doubtful accounts
Total Investments and Other Assets
Total Assets

19,897
108,391672
15,08317,75637,866(422)
199,243¥ 996,827

24,614
108,734
710
16,382
16,82530,658(484)
197,439¥ 952,659

184,237
1,003,629
6,229
139,664
164,415
350,577(3,913)
1,844,838$ 9,229,885

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

Property, Plant and Equipment (Note 5):Land
Buildings and structures
Machinery and equipment
Lease assets (Note 19)
Construction in progress
Others

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

11

Fuji Electric Report Financials 2020

Thousands of
U.S. dollars(Note 3)

Millions of yen

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
Income taxes payable (Note 16)
Other current liabilities (Notes 16 and 23)
Total Current Liabilities
Long-term Liabilities:
Long-term debt (Notes 5, 6, and 9)
Lease obligations (Notes 6 and 10)
Net defined benefit liability (Note 11)
Provision for directors’ retirement benefits
Deferred tax liabilities (Note 16)
Other long-term liabilities (Note 23)
Total Long-term Liabilities
Total Liabilities

2020

2019

2020

¥ 70,771
17,071
179,914
15,66847,203
6,625
85,908423,160¥ 29,508
26,788
196,669
11,99145,496
10,892
104,550
425,894$ 655,287
158,066
1,665,878
145,077
437,068
61,351
795,428
3,918,155

73,60439,19750,011
193
1,172
3,488
167,665
590,825

60,54825,14845,794
215
475
2,524
134,704
560,598

681,523
362,941
463,067
1,790
10,861
32,266
1,552,448
5,470,603

47,586—45,949241,305—
47,586
46,067
223,940

440,612—425,457
2,234,313(7,327)—
327,513—(7,316)
310,277(67,847)—
3,032,535

44,606(231)(3,544)(2,724)
38,10740,382406,002¥ 996,827

43,974(280)
368(1,417)42,645
39,139392,061¥ 952,659

413,028(2,142)(32,826)(25,227)
352,833
373,9143,759,282$ 9,229,885

Contingent Liabilities (Note 18):
Net Assets (Note 24)
Shareholders’ Equity:
Capital stock (Note 12):
Authorized - 320,000,000 shares
Issued- 149,296,991 shares as of March 31, 2020
149,296,991 shares as of March 31, 2019
Capital surplus
Retained earnings
Treasury stock at cost (Note 12) :6,454,259 shares as of March 31, 2020
6,451,315 shares as of March 31, 2019
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 202012

Consolidated Statements of Income
Years ended March 31, 2020 and 2019

Thousands of
U.S. dollars(Note 3)

Millions of yen

2020

2019

2020

Net Sales
Cost of Sales (Note 13)
Gross Profit¥ 900,604
680,068
220,536¥ 914,915
679,877
235,038$ 8,338,926
6,296,925
2,042,001

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

178,02142,515

175,066
59,972

1,648,343
393,658

2,830(1,405)(60)(1,326)
1,416
543
1,998
44,513

3,122(1,377)
(520)
89
1,682
511
3,507
63,47926,212(13,012)(556)(12,278)
13,1205,017
18,503412,161(653)
43,860(1,192)62,287(6,042)406,119

11,98931,871

17,21745,070111,011295,108

3,078¥ 28,793

4,803¥ 40,267

28,502$ 266,606

Non-Operating Income (Expenses):
Interest and dividend income
Interest expense
Provision of allowance for doubtful accounts for subsidiaries and affiliates
Foreign exchange gains (losses)
Equity in earnings of affiliates
Other, net
Ordinary Income
Extraordinary Loss, 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 24)

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

13

Fuji Electric Report Financials 2020

Consolidated Statements of Comprehensive Income
Years ended March 31, 2020 and 2019

Thousands of
U.S. dollars(Note 3)

Millions of yen

Net Income

2020

2019

2020

¥ 31,871¥ 45,070$ 295,108

608
49(4,574)(1,531)(3,782)(369)(1,361)(1,106)

5,638
455(42,358)(14,184)

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 of associates accounted forusing equity method
Total Other Comprehensive loss
Comprehensive Income

402

201

3,722

(5,046)¥ 26,825(6,417)¥ 38,653(46,727)$ 248,381

Comprehensive Income Attributable to:
Owners of parent
Non-controlling interests¥ 24,254
2,571¥ 34,082
4,571$ 224,577
23,804

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

Fuji Electric Report Financials 202014

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2020 and 2019

Thousands

Millions of yen

Retainedearnings

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Treasury
stock

Total

Noncontrollinginterests

Total
net assets¥45,986¥195,517¥47,665¥ 88¥ 1,574¥ (496)¥(7,284)¥330,636¥35,910¥366,546—

40,267

—

—

—

—

—

40,267—40,267

Number ofshares ofcapital stock

Capitalstock

Capitalsurplus

Balance at March 31, 2018

746,484¥47,586

Net income attributable toowners of parent——

Change of scope of
consolidation

—

—

—

(416)

—

—

—

—

—

(416)

—

(416)

Cash dividends

—

—

—

(11,428)

—

—

—

—

—

(11,428)—(11,428)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(32)

(32)

—

(32)

Sales of treasury stock

—

—

2

—

—

—

—

—

0

2

—

2

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

—

—

79

—

—

—

—

—

—

79

—

79

Net changes of items otherthan shareholders’ equity(597,188)———(3,691)(368)

Balance at March 31, 2019

149,296¥47,586¥46,067¥223,940¥43,974¥(280)Net income attributable toowners of parent

—

—

—

28,793—

Change of scope of
consolidation

—

—

—

—

—

(1,206)(921)—(6,186)

3,229(2,957)368¥(1,417)¥(7,316)¥352,922¥39,139¥392,061

—

—

—

—

28,793—

28,793

—

—

—

—

—

—

—

¥

Cash dividends

—

—

—

(11,428)

—

—

—

—

—

(11,428)—(11,428)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(11)

(11)

—

(11)

Sales of treasury stock

—

—

1

—

—

—

—

—

0

1

—

1

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

—

—

(119)

—

—

—

—

—

—

(119)

—

(119)

—

—

—

632

49

(3,912)(1,307)—(4,538)1,243(3,295)¥47,586¥45,949¥241,305¥44,606¥(231)¥(3,544)¥(2,724)¥(7,327) ¥365,620¥40,382¥406,002

Net changes of items otherthan shareholders’ equity
Balance at March 31, 2020

149,296

Thousands of U.S. dollars (Note 3)

Balance at March 31, 2019

$440,612

Net income attributable toowners of parent—$426,548 $2,073,519 $407,175—

266,606—$(2,597)$ 3,411$(13,128)

—

—

—

—

266,606—

266,606

Change of scope of
consolidation

—

—

—

—

—

—

—

—

—

—

0

Cash dividends——(105,812)

—

—

—

—

—

(105,812)—(105,812)

Purchase of treasury stock

—

—

—

—

—

—

—

(107)

(107)

—

(107)

Sales of treasury stock

—

10

—

—

—

—

—

5

15

—

15

Change in treasury sharesof parent arising fromtransactions with
non-controlling shareholders—(1,101)

—

—

—

—

—

—

(1,101)—(1,101)

—

—

5,853

455

(36,237)(12,099)—(42,028)

11,510(30,518)$425,457 $2,234,313 $413,028$(2,142)$(32,826)$(25,227)

Net changes of items otherthan shareholders’ equity
Balance at March 31, 2020—
$440,612

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

15$(67,745) $3,267,795 $362,404 $3,630,199

Fuji Electric Report Financials 2020$(67,847) $3,385,368 $373,914 $3,759,282

Consolidated Statements of Cash Flows
Years ended March 31, 2020 and 2019

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
Interest and dividend income
Interest expense
Foreign exchange losses (gains)
Gain on sales of noncurrent assets
Gain on sales of investment securities
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Impairment loss
Foreign currency translation adjustments reversal gains
Changes in operating assets and liabilities:
Trade receivables
Inventories
Trade payables
Advances received
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
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities
Cash Flows from Financing Activities:
Net Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
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
Other, net
Net cash provided by (used in) financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) 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

2020

2019

2020

¥ 43,860
32,319352(2,830)
1,405
149
(245)
(2,525)
1,517
1,481
0
0

¥ 62,287
30,906802(3,122)
1,377
(544)
(96)
(1,055)
1,121
279
2,242
(1,299)$ 406,119
299,256
3,267(26,212)
13,012
1,385(2,272)(23,388)
14,04813,7140
012,127(11,873)(15,159)
1,557
(900)
61,2352,830(1,396)(16,582)
46,087(21,949)(26,937)
12,410(3,129)12,18665,4793,142(1,412)(12,260)
54,949112,296(109,941)(140,367)
14,421(8,340)566,998
26,212(12,929)(153,544)
426,737(22,699)
741
(638)
8,956
(9,422)(7,825)
7,768(4,502)(27,621)(15,932)
354
(639)
1,600
0
(7,381)
7,339(6,789)(21,448)(210,181)
6,867(5,915)82,932(87,250)(72,459)
71,928(41,674)(255,752)

41,20330,126(26,663)——(14,625)1(11)(11,428)(1,442)(2,680)3,044(2,068)10,000(20,000)(13,106)
2(32)(11,428)(1,340)381,511
278,949(246,883)00(135,424)15(107)(105,812)(13,360)

(242)

(512)

(2,244)(1)
16,918(772)
34,612
29,134(52)(38,172)338(4,333)33,3291
156,646(7,155)
320,476
269,767—

138

0¥ 63,746¥ 29,134$ 590,243

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

Fuji Electric Report Financials 202016

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 ofaccounting principles generally accepted in Japan, which are
different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards, andare compiled from the consolidated financial statements preparedby the Company as required by the Financial Instruments andExchange 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 thesestatements 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, 2020 include the accounts of the Company and its 73
significant subsidiaries and its 4 subsidiaries and affiliates areaccounted for by the equity method (72 and 4 in 2019).
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, the assets
and liabilities of the subsidiaries, including the portion attributable
to non-controlling shareholders, are evaluated using the fairvalue at the time the Company acquired control of the respective
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 2020

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
Marketable securities classified as other securities are stated atfair value. Unrealized gains and losses, net of taxes, are reported
in a separate component of net assets.
Nonmarketable securities classified as other securities arestated 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 and interest rate andcurrency swap agreements as a means of managing its interest
rate and foreign currency exposures on certain liabilities.
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
currency transactions 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.
c) T he interest rate and currency swaps which qualify for hedge
accounting and meet criteria for exceptional accounting
treatment (“Tokurei shori”) and allocation treatment (“Furiate
shori”) under hedge accounting are accounted for integrated
treatment (“Ittai shori”).

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 thestraight-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. 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)	The prior service costs are amortized by the straight-line
method within the average remaining years of service of theemployees participants. The actuarial gains and losses areamortized by the straight-line method within the averageremaining years of service of the employee participants fromthe next period in which they arise, respectively.

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

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

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.

m. 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.

n. 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.

o. Accounting for Consumption Taxes
The Japanese consumption taxes withheld and consumption
taxes paid are not included in the accompanying consolidated
statements of income.

p. Adapting Tax Effect Accounting for the Transition
from Consolidated Tax Return Filing System toJapanese Group Relief System
Regarding the transition to the group tax sharing system,
established under the “Law that partially amends the Income
Tax Law” (Law No. 8 of 2 years of Reiwa), and revised itemsof the Non-consolidated Tax Return Filing System in relation
to the transition, Fuji electric and some domestic consolidated
subsidiaries did not adopt 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 Effect Accounting for theTransition from the Consolidated Taxation System to the GroupTax Sharing System” (Practical Solution No. 39 issued on March
30, 2020) paragraph 3. Therefore, the amount of deferred tax
assets and deferred tax liabilities were based on the tax law before
the revision.

k. Recognition for Revenue and Costs
For long-term construction contracts whose outcome can be
estimated reliably, the percentage-of-completion method isadopted. The stage of completion of a contract is determined by
the percentage of the cost incurred to date to the estimated total
cost. When the outcome of the construction contracts can not be
estimated reliably, the completed-contract method is adopted.

l. 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

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.
Fuji Electric Report Financials 202018

r. Accounting Standards Issued but not yet Effective- “Accounting Standard for Revenue Recognition” (AccountingStandard Board of Japan (“ASBJ”) statement No. 29 issued on
March 30, 2018)- “Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30 issued on March 30, 2018)- “Implementation Guidance on Disclosures about Fair Value of
Financial Instruments.” (ASBJ Guidance No. 19 issued on March
31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and theUnited States Financial Accounting Standards Board (FASB)
worked together toward development of a comprehensive
accounting standard for revenue recognition and “Revenue
from Contracts with Customers” was issued as IFRS 15 by
the IASB and as ASC 606 by the FASB in May, 2014. IFRS 15
became effective for annual reporting periods beginning on
or after January 1, 2018 and ASC 606 became effective forthe periods beginning on or after December 15, 2017. In lightof these circumstances, the ASBJ developed and issued acomprehensive accounting standard for revenue recognition
together with an implementation guidance.
The ASBJ’s basic policy for developing accounting standard
for revenue recognition is to build the standard on the core
principle of IFRS 15 in terms of international comparability
between financial statements that is one of the benefits of
convergence toward IFRS 15. It also stated that alternative
accounting treatment may be additionally adopted locally,
to make consideration to the current Japanese practices ifnecessary, provided such alternative treatments would not
impair international comparability.
(2) Scheduled date of adoption
The Companies expect to adopt the accounting standard andimplementation guidance from the beginning of the fiscal year
ending March 31, 2022.
(3)	Impact of the adoption of accounting standard andimplementation guidanceThe Companies are currently evaluating the effect of the
adoption of this accounting standard and implementation
guidance on the consolidated financial statements.
- “Accounting Standard for Fair Value Measurement” (AccountingStandard Board of Japan (“ASBJ”) statement No. 30 issued on
July 4, 2019)- “Accounting Standard for Measurement of Inventories”(Accounting Standard Board of Japan (“ASBJ”) statement No. 9
issued on July 4, 2019)- “Accounting Standard for Financial Instruments” (AccountingStandard Board of Japan (“ASBJ”) statement No. 10 issued on
July 4, 2019)- “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (Accounting Standard Board of Japan (“ASBJ”)
statement No. 31 issued on July 4, 2019)- “Implementation Guidance on Disclosures about Fair Value of
Financial Instruments.” (Accounting Standard Board of Japan(“ASBJ”) statement No. 19 issued on March 31, 2020)

19

Fuji Electric Report Financials 2020

(1) Overview
The International Accounting Standards Board (IASB) andthe United States Financial Accounting Standards Board(FASB) provide nearly identical detailed guidance on fairvalue measurements (IFRS 13 “Fair Value Measurements”
in International Financial Reporting Standards (IFRS),
the Accounting Standards Codification Topic 820 “Fair
Value Measurement” in the United States). In light of thesecircumstances, the ASBJ improved consistency between
domestic and international accounting standards with regard
to the guidance and disclosure mainly on the fair value offinancial instruments, and issued “Accounting Standard for Fair
Value Measurement” and relating accounting standards. The
ASBJ’s basic policy for developing accounting standard forfair value measurement is to basically adopt all the provisionsof IFRS 13 in order to improve the comparability of financial
statements between domestic and foreign companies by usinga uniform calculation method. It also stated that alternative
accounting treatment may be additionally adopted locally,
to make consideration to the current Japanese practices ifnecessary, provided such alternative treatments would not
impair international comparability.
(2) Scheduled date of adoption
The Companies expect to adopt the accounting standard andimplementation guidance from the beginning of the fiscal year
ending March 31, 2022.
(3)	Impact of the adoption of accounting standard andimplementation guidanceThe effect of the adoption of this accounting standard andimplementation guidance on the consolidated financial
statements is yet to be determined.
- “Accounting Standard for Disclosure of Accounting Estimates”(Accounting Standard Board of Japan (“ASBJ”) statement No. 31
issued on March 31, 2020)(1) Overview
International Accounting Standards (IAS) 1 “Presentation offinancial statements” paragraph 125, issued by the International
Accounting Standards Board (IASB) in 2003, requires todisclose the “Sources of estimation uncertainty”. The ASBJ
received a request for consideration of requiring disclosure asnote information under Japanese standards as well, as that
information is highly useful to users of financial statements.
Then the ASBJ developed and issued Accounting Standard
for Disclosure of Accounting Estimates. The ASBJ’s basic
policy for developing the accounting standard is that specificdisclosure contents should be determined by entities withconsideration of disclosure purposes, and in developing thestandard, the ASBJ referred to IAS 1 paragraph 125.
(2) Scheduled date of adoption
The Companies expect to adopt the accounting standard andimplementation guidance from the beginning of the fiscal year
ending March 31, 2021.

- The revised “Accounting Standard for Accounting Policy
Disclosures, Accounting Changes and Error Corrections”(Accounting Standard Board of Japan (“ASBJ”) statement No. 24
issued on March 31, 2020)(1) Overview
In response to the recommendation to consider theenhancement of the note information related “Accounting
principles and procedures adopted when the provisionsof relevant accounting standards are not clear”, the ASBJ
revised and issued Accounting Standard for Accounting Policy
Disclosures, Accounting Changes and Error Corrections. Whendeveloping the revision, the provisions of accounting standard
Interpretations (Note 1-2) will be taken over in order not to affectthe past practices when the provisions of related accounting
standards are clear.

(2) Scheduled date of adoption
The Companies expect to adopt the accounting standard andimplementation guidance from the beginning of the fiscal year
ending March 31, 2021.

s. Additional Information
About the effects of novel coronavirus (COVID-19) pandemic
The novel coronavirus (COVID-19) pandemic has restrictedeconomic activity on an unprecedented scale in many countries.
Due to the tough situation, we 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, we estimate impairments of fixed assets, based on theinformation available at the end of the consolidated fiscal year andthe assumption that the condition will continue for a certain periodof the next consolidated fiscal year.

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¥108=U.S.$1, the approximate exchange rate as of March 31,
2020. The U.S. dollar amounts are presented solely for theconvenience of the readers outside Japan.

Note 4. Inventories
Inventories as of March 31, 2020 and 2019 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Merchandise and finished goods
Work in process
Raw materials
Inventories

2020

2019

2020

¥ 66,866
67,87553,372¥ 188,113¥ 62,185
63,91450,873¥ 176,972$ 619,137
628,474
494,177$ 1,741,788

Losses on valuation of inventories with lower profitability were ¥489 million ($4,533 thousand) and ¥390 million for the years ended
March 31, 2020 and 2019, 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, 2020 and 2019 wereas follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2019

2020

Investment securities
Property, plant and equipment
Intangible assets
Total

¥

12
1,438
405
¥ 1,855

¥

14
1,545
415
¥ 1,974

2020

$

115
13,323
3,740$ 17,178

Collateralized liabilities as of March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2019

2020

77
891
101
¥ 1,069

$ 433
2,075
584
$ 3,092

2020

Trade payables
Short-term debt
Long-term debt
Total

¥ 46
224
63
¥ 333

¥

Fuji Electric Report Financials 202020

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 in foreign
currencies, offset by the amount of the trade payables denominatedin the same currencies.
Short-term investments and investment securities are comprised
primarily of stocks of companies with which the Companies havebusiness relation and are exposed to market price risk.
Trade payables are mostly payable within one year. Some trade
payables are denominated in foreign currencies and exposed to
exchange risk. The Companies hedge the exchange risk of the trade
payables denominated in foreign currencies in principle, except
for the amount within that of trade receivables denominated in thesame 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 14 years at the longest after the balance
sheet date. Some are exposed to interest rate fluctuation andexchange risk and the Companies hedge such risk by interest rateand currency swap transactions.
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 interest rate and currency swap
transactions to reduce the interest rate fluctuation and exchange
risk of loans, and use commodityswap transactions to reduce
the risk of fluctuation of commodity prices for raw materials. As
hedging instruments under hedge accounting, the Companies
enter into these derivative transactions in accordance with
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.

21

Fuji Electric Report Financials 2020

(3) Systems for management of financial instruments riska) Credit 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) Market risk management (the risks arising from fluctuations
in exchange rates, interest rates and other indicators)
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 interest rate and currency swap transactions to
reduce the interest rate and exchange fluctuation risk of loans, anduse commodity swap transactions to reduce the risk of fluctuationof 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
The estimated fair value of financial instruments is their pricebased on their market price and other indicators. When there isno market price available, it includes prices which are reasonably
computed.
Since variable factors are taken into account in computing theprice, this price may fluctuate depending on different assumptions
adopted. In addition, the contract (notional) amount of derivatives
in “Note 8. Derivatives” is not an indicator of the actual market risk
involved in derivative transactions.

2. Estimated Fair Value and Other Matters Related to Financial Instruments
Carrying amounts on the consolidated balance sheets as of March 31, 2020 and 2019, estimated fair value and the variance between
them are shown in the following table. Financial instruments whose estimated fair value is deemed to be extremely difficult to obtain are
not included (Please refer to Note 2).
Millions of yen

2020

Cash and cash equivalents
Trade receivables
Investment securities
Trade payables
Short-term debt
Current portion of long-term debt
Lease obligations (Current Liabilities)
Long-term debt
Lease obligations (Long-term Liabilities)
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value¥ 63,746
294,504
113,511(179,914)(70,771)(17,071)(15,668)(73,604)(39,197)¥ 63,746
294,461
125,474(179,914)(70,771)(17,086)(15,668)(73,719)(39,602)

15
(333)

15
(333)

Variance¥—(43)
11,963
—
—
15
—
115
405
—
—

Millions of yen

2019

Cash and cash equivalents
Trade receivables
Investment securities
Trade payables
Short-term debt
Current portion of long-term debt
Lease obligations (Current Liabilities)
Long-term debt
Lease obligations (Long-term Liabilities)
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value¥ 29,134
308,831
117,739(196,669)(29,508)(26,788)(11,991)(60,548)(25,148)¥ 29,134
308,808
128,010(196,669)(29,508)(26,788)(11,991)(61,044)(25,472)

24
(404)

24
(404)

Variance¥—(23)
10,271
—
—
—
—
496
324
—
—

Thousands of U.S. dollars (Note 3)

2020

Cash and cash equivalents
Trade receivables
Investment securities
Trade payables
Short-term debt
Current portion of long-term debt
Lease obligations (Current Liabilities)
Long-term debt
Lease obligations (Long-term Liabilities)
Derivatives
Derivative transactions to which hedge accounting is not applied
Derivative transactions to which hedge accounting is applied

Carrying amounts

Fair value$ 590,243
2,726,889
1,051,033(1,665,878)(655,287)(158,066)(145,077)(681,523)(362,941)$ 590,243
2,726,498
1,161,803(1,665,878)(655,287)(158,205)(145,077)(682,585)(366,686)

148(3,087)148(3,087)

Variance

$

—
(391)
110,770
—
—
139
—
1,062
3,745
—
—

(*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.

Fuji Electric Report Financials 202022

Notes: 1. Methods for computing the estimated fair value of financial instruments, and information on securities and derivatives(1)	Cash and cash equivalents
Since these items are settled in a short period of time, estimated fair values are virtually the same as the carrying amounts.
(2)	Trade receivables
Fair values of trade receivables, classified by each maturity, are based on the present value discounted by the interest rate determined taking into account the term
until maturity and the credit risk.
(3)	Investment securities
Stocks are valued at the exchange trading price. For information on securities classified by the purpose of holding, please refer to “Note 7. Securities.”(4)	Trade payables, (5) Short-term debt, (6) Current portion of long-term debt (except bonds) and (7) Lease obligations (Current Liabilities)
Since these items are settled in a short period of time, estimated fair values are virtually the same as the carrying amounts.
(6)	Current portion of long-term debt (bonds) and (8) Long-term debt (bonds)
Fair values of bonds issued by the Company are based on each market price.
(8)	Long-term debt (except bonds) and (9) Lease obligations (Long-term Liabilities)
Fair values of these items are based on the present value of the total of principal and interest discounted by the interest rate applied if similar new borrowings and newlease transactions were entered into.
(10)	Derivatives
Please refer to “Note 8. Derivatives.”
2. Items for which obtaining an estimated fair value is deemed to be extremely difficult
Thousands of
U.S. dollars (Note 3)

Millions of yen

2020

2019

2020

Carrying amounts

Carrying amounts

Carrying amounts¥14,777¥15,608$136,832

Unlisted stocks (including stocks of unconsolidated subsidiaries and affiliates)

Because the items in the preceding table do not have market price and obtaining the estimated fair values of these items is deemed to be extremely difficult, fair value has
not been disclosed in (3) Investment securities.
3. Redemption schedule for monetary assets and securities with maturity dates as of March 31, 2020 and 2019:
Millions of yen

2020
Within 1 year

Between 1 and5 years

Between 5 and10 years

Over 10 years

—

¥ —

¥—

Cash and cash equivalents¥ 63,746

Trade receivables

286,796

7,191

515

—

¥ 350,542¥ 7,191¥ 515¥—

Between 5 and10 years

Over 10 years
¥—

Total

¥

Millions of yen

2019Within 1 year

Between 1 and5 years

Cash and cash equivalents¥ 29,134—¥—

Trade receivables

299,560

9,206

64

—

¥ 328,694¥ 9,206

¥ 64

¥—

Total

¥

Thousands of U.S. dollars (Note 3)

2020
Within 1 year
Cash and cash equivalents
Trade receivables
Total

$

590,243

Fuji Electric Report Financials 2020$—

Between 5 and10 years$—

Over 10 years$—

2,655,524

66,5884,777—$ 3,245,767$ 66,588$ 4,777$—

4. 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.”

23

Between 1 and5 years

Note 7. Securities
1. Other Securities as of March 31, 2020 and 2019 were as Follows:
Millions of yen

2020

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

Cost

Carrying amounts

Unrealized gains

Unrealized losses¥ 39,873——¥ 39,873¥ 104,420——¥ 104,420¥ 65,616——¥ 65,616¥(1,069)——¥(1,069)

Millions of yen

2019Marketable securities classified as other securities
Equity securities
Debt securities
Others
Total

Cost

Carrying amounts

Unrealized gains

Unrealized losses¥ 41,069——¥ 41,069¥ 104,610——¥ 104,610¥ 64,104——¥ 64,104¥(563)——¥(563)

Thousands of U.S. dollars (Note 3)

2020

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

Cost

Carrying amounts

Unrealized gains

Unrealized losses$ 369,200——$ 369,200$ 966,857——$ 966,857$ 607,557——$ 607,557$ (9,900)——$ (9,900)

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, 2020 and 2019 were ¥3,971 million ($36,772 thousand) and ¥4,124 million, respectively.)

2. Sales of Other Securities for the Years Ended March 31, 2020 and 2019 were as Follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Proceed from sales
Gain on sales
Loss on sales

2020

2019

2020

¥ 1,434718(10)¥ 1,590
1,055—$ 13,286
6,653
(96)

3. Impairment of Other Securities for the Years Ended March 31, 2020 and 2019 were as Follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Impairment losses

2020

2019

2020

¥ 1,481¥ 279$ 13,714

Fuji Electric Report Financials 202024

Note 8. Derivatives
1. Derivative Transactions to which Hedge Accounting is Not Applied
Millions of yen

2020

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

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss

¥ 952
714
216
144

¥—
—
—
—

¥ (5)
13
0
4

¥ (5)
13
0
4

294
770
884
¥ 3,974

—
—
—
¥—

2
48
(47)
¥ 15

2
48
(47)
¥ 15

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss¥ 2,708
1,924
112
136
1,624

¥—
—
—
—
—

¥ (16)
54
(0)
(3)
(13)

¥ (16)
54
(0)
(3)
(13)

205
22
¥ 6,731

—
—
¥—

2
0
¥ 24

2
0
¥ 24

Millions of yen

2019Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Won
Baht
Yuan Renminbi
Payables:U.S. Dollar
Yen
Total

Thousands of U.S. dollars (Note 3)

2020

Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Won
Baht
Payables:U.S. Dollar
Yen
Singapore Dollar
Total
Note: The fair value is estimated based on forward exchange rates.

25

Fuji Electric Report Financials 2020

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss$ 8,776
6,616
2,006
1,340

$—
—
—
—

$ (56)
126
3
39$ (56)
126
3
39

2,731
7,135
8,194
$ 36,798

—
—
—
$—

24
450
(438)
$ 148

24
450
(438)
$ 148

2. Derivative Transactions to which Hedge Accounting is Applied(1) Currency-related contracts
Millions of yen

2020
Hedge accounting
methodType of derivative

Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Deferral hedge
Payables:methodU.S. Dollar
Euro
Pound sterling
Indian Rupee
Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Yuan Renminbi
Allocation method
Baht
Payables:U.S. Dollar
Euro
Pound sterling
Total

Principal items hedged

Contract amountContract amountover 1 year

Fair value

Accounts receivable-trade¥ 1,795
159

¥

—
19

¥ (97)
(1)

54
5,077
—
—

13
(217)
0
(31)

Accounts payable-trade
3,204
10,32822,460
Accounts receivable-trade¥ 3,170
86
152
105

¥

—
—
—
—

(Note2)914
243
2¥ 22,620———¥ 5,150¥ (333)

Accounts payable-trade

Millions of yen

2019
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
Yuan Renminbi
Allocation method
Baht
Payables:U.S. Dollar
Euro
Total

Principal items hedged

Contract amountContract amountover 1 year

Fair value¥ 5,4612,048
25¥ 1,814——¥ (223)
20
(1)

3,750
6,375
32

—
2,537
—

42
(242)
0

Accounts receivable-trade

Accounts payable-trade

Accounts receivable-trade¥ 2,201
184
168

¥

—
—
—

(Note2)

1,078
178¥ 21,500——¥ 4,351¥ (404)

Accounts payable-trade

Fuji Electric Report Financials 202026

Thousands of U.S. dollars (Note 3)

2020
Hedge accounting
methodType of derivative

Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Deferral hedge
Payables:methodU.S. Dollar
Euro
Pound sterling
Indian Rupee
Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Yuan Renminbi
Allocation method
Baht
Payables:U.S. Dollar
Euro
Pound sterling
Total

Principal items hedged

Contract amountContract amountover 1 year

Fair value

Accounts receivable-trade$ 16,623
1,475

$

—
184

$

(905)
(11)

Accounts payable-trade29,66995,58228
22,782

501
47,007——126(2,003)(2)(292)

Accounts receivable-trade$ 29,352
804
1,415
977

$

—
—
—
—

(Note2)

8,466
2,253
24
$ 209,450———$ 47,692$ (3,087)

Accounts payable-trade

Notes: 1. The fair value is estimated based on forward exchange rates.
2. S
 ince amounts in foreign currency forward contracts treated by the allocation method are handled together with accounts receivable-trade and accounts payable-tradethat are subject to hedging, the estimated fair value of such contracts is included in the fair value of accounts receivable-trade or accounts payable-trade.

(2) Interest-rate-related contracts
Millions of yen

2020
Hedge accounting method

Exceptional accounting
treatment andallocation treatment

Type of derivative

Principal items hedged

Interest rate and currency swap
Long-term loans payable
contracts (Floating rate receipts /Fixed rate payments)

Contract amountContract amountover 1 year

Fair value¥ 1,835¥ 1,835(Note2)Millions of yen

2019
Hedge accounting method

Exceptional accounting
treatment andallocation treatment

Type of derivative

Principal items hedged

Interest rate and currency swap
Long-term loans payable
contracts (Floating rate receipts /Fixed rate payments)

Contract amountContract amountover 1 year

Fair value¥ 1,835¥ 1,835(Note2)Thousands of U.S. dollars (Note 3)

2020
Hedge accounting method

Exceptional accounting
treatment andallocation treatment

Type of derivative

Principal items hedged

Interest rate and currency swap
Long-term loans payable
contracts (Floating rate receipts /Fixed rate payments)

Contract amountContract amountover 1 year

Fair value$ 16,993$ 16,993(Note2)

Notes: 1. The fair value is principally based on the quotes obtained from the correspondent financial institutions.
2. S ince amounts in interest rate swaps which qualify for hedge accounting and meet specific matching criteria are handled together with long-term loans payable that are
subject to hedging, the estimated fair value of such interest rate swaps is included in the fair value of the long-term loans payable.

27

Fuji Electric Report Financials 2020

Note 9. Short-term Debt and Long-term Debt
Short-term debt as of March 31, 2020 and 2019 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Loans, principally from banks
Commercial paper
Short-term debt

2020

2019

2020

¥ 19,271
51,500¥ 70,771¥ 21,508
8,000¥ 29,508$ 178,435
476,852$ 655,287

Note: The weighted average interest rates on short-term debt as of March 31, 2020 and 2019 were 0.45% and 1.21%, respectively.

Long-term debt as of March 31, 2020 and 2019 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:
0.38% Yen unsecured straight bonds due September 4, 2020
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

2020

2019

2020

¥ 40,675¥ 37,336$ 376,626

15,00015,00010,00010,00090,675
17,071¥ 73,604

15,00015,00010,00010,00087,336
26,788¥ 60,548

138,889
138,889
92,59392,593
839,589
158,066$ 681,523

Note: The weighted average interest rates on loans, principally from banks and insurance companies, as of March 31, 2020 and 2019 were 0.40% and 0.57%, respectively.

As of March 31, 2020, 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)

2022
2023
2024
2025
2026 thereafterTotal¥ 4,332
30,242
17,5301,500
20,000¥ 73,604$ 40,104
280,025
162,320
13,889185,185$ 681,523

Note 10. Lease Obligations
Lease obligations as of March 31, 2020 and 2019 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

2020

2019

2020

¥ 15,668
39,197¥ 54,865¥ 11,991
25,148¥ 37,139$ 145,077
362,941$ 508,018

Years ending March 31,

Millions of yen

Thousands of
U.S. dollars (Note 3)

2022
2023
2024
2025
2026 thereafter
Total¥ 14,220
10,586
7,726
4,586
2,079
¥ 39,197$ 131,675
98,021
71,541
42,467
19,237$ 362,941

Short-termLong-term
Total

Note: The weighted average interest rates on lease obligations as of March 31, 2020 and 2019 were 1.88% and 1.70%, respectively.

As of March 31, 2020, the aggregate annual maturities of lease obligations were as follows:

Fuji Electric Report Financials 202028

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, 2020 and 2019 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
OthersRetirement benefit obligation at the end of the year

2020

2019

2020

¥ 181,387
3,167
2,409
1,406
(11,524)(681)
28¥ 176,192

187,344
3,202
2,488
1,296
(12,950)(0)
7¥ 181,387$ 1,679,512
29,332
22,31313,020(106,706)(6,307)246$ 1,631,410(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, 2020 and 2019 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
Redemption of the retirement benefit trust assets
OthersPlan assets at fair value at the end of the year

2020

2019

2020

¥ 153,859
2,117(2,819)
1,219(10,965)—(6)¥ 143,405¥ 186,726
2,166
(462)
1,753
(11,771)(24,556)
3¥ 153,859$ 1,424,627
19,604(26,105)
11,290(101,529)—(59)$ 1,327,828(3) T he changes in net defined benefit liability calculated by a simplified method during the years ended March 31, 2020 and2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Retirement benefit obligation at the beginning of the year
Retirement benefit expenses
Retirement benefits paid
Contributions
OthersNet defined benefit liability at the end of the year

29

Fuji Electric Report Financials 2020

2020

2019

2020

¥ 1,884
493
(79)
(147)
(11)
¥ 2,140¥ 1,792
280
(47)
(139)
(2)
¥ 1,884$ 17,447
4,572
(733)
(1,366)(99)$ 19,821

(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

2020

2019

2020

Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized in the consolidated balance sheet¥ 175,370(146,953)
28,417
6,510¥ 34,927¥ 180,868(157,467)
23,401
6,010¥ 29,411$ 1,623,804(1,360,677)
263,127
60,276$ 323,403

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

50,011(15,084)¥ 34,927

45,794(16,383)¥ 29,411

463,067(139,664)$ 323,403

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, 2020 and 2019 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
OthersRetirement benefit expenses

2020

2019

2020

¥ 3,167
2,409(2,117)
1,654
(280)
493
106
¥ 5,432¥ 3,202
2,488(2,166)
181
17
280
129
¥ 4,131$ 29,332
22,313(19,604)
15,316(2,595)
4,572
967$ 50,301(6) T he components of remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for
the years ended March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2019

2020

(17)
1,575
¥ 1,558$ (3,712)
23,797$ 20,085

2020

Prior service cost
Actuarial gain and loss
Total

¥

¥ (400)2,569¥ 2,169(7) The components of remeasurements of defined benefit plans included in accumulated other comprehensive income (before
tax effect) as of March 31, 2019 and 2018 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

2020

2019

2020

¥ (6,479)
10,087¥ 3,608¥ (6,078)
7,516¥ 1,438$ (59,991)
93,400$ 33,409(8) The breakdown of plan assets by major category as of March 31, 2020 and 2019 were as follows:
Debt securities
Deposit
Equity securities
General accounts at life insurance companies
Others
Total

2020

2019

40%
24
14
21
1
100%

40%
25
15
18
2
100%

Note: Retirement benefit trust established for the corporate pension plans is included and equivalent to 9% of total amount of plan assets as of March 31, 2020 and 9% of total
amount of plan assets as of March 31, 2019.

The long-term expected rates of return on plan assets has been determined as a result of consideration of both the portfolio allocation atpresent and in the future, and long-term rates of return from multiple plan assets at present and in the future.
Fuji Electric Report Financials 202030

(9) The assumptions used in accounting for the defined benefit plans as of March 31, 2020 and 2019 were as follows:
Discount rates
Long-term expected rates of return on plan assets
Expected rates of salary increase

2020

2019

0.27% – 1.40%
mainly 2.0%
0.0% – 8.6%

0.27% – 1.40%
mainly 2.0%
2.5% – 8.6%

3. Information on Defined Contribution Pension Plans
Contributions of defined contribution pension plans for the years ended March 31, 2020 and 2019 were ¥4,724 million ($43,745 thousand)and ¥4,708 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, 2020 and 2019 were ¥15 million ($139 thousand) and ¥14 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, 2020 and 2019 were as follows:
Thousands of shares

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

March 31, 2019

Increasein the year

Decreasein the year

March 31, 2020

149,296
149,296————

149,296
149,296

6,451
6,451

3
3

—
—

6,454
6,454

Thousands of shares

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

March 31, 2018

Increasein the year

Decreasein the year

March 31, 2019

746,484
746,484——

597,188597,188

149,296
149,296

32,21532,21519
19

25,78325,783

6,451
6,451

Note for the year ended March 31, 2020
The increase of treasury stock of common stock amounted to 3 thousand is due to purchase of shares of less than one voting unit.
Notes for the year ended March 31, 2019
1. Fuji Electric conducted an 1-for-5 common stock consolidation effective October 1, 2018.
2. The decrease of shares outstanding of common stock amounted to 597,188 thousand is due to stock consolidation.
3. T he increase of treasury stock of common stock amounted to 19 thousand consists of the increase amounted to 2 thousand due to purchase of fractions less than a share
as a result of the stock consolidation, and the increase amounted to 17 thousand (Before the stock consolidation: 13 thousand, after stock consolidation: 3 thousand) due
to purchase of shares of less than a share trading unit associated with the stock consolidation.
4. T he decrease of treasury stock of common stock amounted to 25,783 thousand consists of the stock consolidation amounted to 25,782 thousand and the sales of sharesof less than a share trading unit amounted to 1 thousand (Before the stock consolidation: 0 thousand, after stock consolidation: 0 thousand).

2. Dividends(1) Dividends paid
For the year ended March 31, 2020
Resolution

Type ofsharesMeeting of the Board of
CommonDirectors on May 23, 2019stock
Meeting of the Board of
CommonDirectors on October 31, 2019
stock

31

Fuji Electric Report Financials 2020

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))¥ 5,713$ 52,906¥ 40.0$ 0.37

5,713

52,90640.0

0.37

Cut-off date

Effective date

March 31,
June 5,20192019
September 30, December 3,
2019
2019

For the year ended March 31, 2019
Type ofsharesResolution

Total dividends (millions of yen)

Meeting of the Board of
CommonDirectors on May 24, 2018stock
Meeting of the Board of
CommonDirectors on October 25, 2018stock

Dividends per share (yen)¥ 5,714

¥8.0

5,714

8.0

Cut-off date

Effective date

March 31,
June 6,20182018
September 30, December 4,
2018
2018

(2) Dividends with the cut-off date in the year ended March 31, 2020 and effective date in the year ending March 31, 2021
Type ofsharesResolution

Meeting of the Board of
Directors on May 29, 2020

Commonstock

Total dividends(millions of yen)

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

Source ofdividends$52,905

Retained
Earnings¥5,713

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

Effective date

March 31,2020

June 29,
2020

¥40.0

$0.37

Dividends with the cut-off date in the year ended March 31, 2019 and effective date in the year ended March 31, 2020
Type ofsharesResolution

Meeting of the Board of
Directors on May 23, 2019

Total dividends (millions of yen)

Source ofdividends¥5,713Retained
Earnings

Commonstock

Dividends per share (yen)Cut-off date

Effective date

¥40.0

March 31,2019

June 5,2019

Note 13. Research and Development Costs
Research and development costs charged to income were ¥34,457 million ($319,047 thousand) and ¥33,669 million for the years ended
March 31, 2020 and 2019, respectively.
Thousands of
U.S. dollars (Note 3)

Millions of yen

Research and development costs

2020

2019

2020

¥ 34,457¥ 33,669$ 319,047

Note 14. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Salaries and wages
Retirement benefit expenses
Research and development costs

2020

2019

2020

¥ 81,061
4,592
30,366¥ 79,830
3,974
29,581$ 750,570
42,523281,172

Note 15. Extraordinary Income, Net
Extraordinary income, net, for the years ended March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2019

2020

96
1,055
1,299

$ 2,272
23,388—(1,121)(279)—(2,242)¥ (1,192)(14,048)(13,714)(3,940)—$ (6,042)

2020

Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Foreign currency translation adjustments reversal gains
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Loss on compensation for damage
Impairment loss
Extraordinary income (loss), net

¥

245
2,525
—

(1,517)(1,481)(425)—¥ (653)¥

Fuji Electric Report Financials 202032

Note 16. Income Taxes
1. The Components of Income Taxes for the Years Ended March 31, 2020 and 2019 were as Follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Current
DeferredIncome taxes

2020

2019

2020

¥ 12,488(499)¥ 11,989¥ 16,051
1,166¥ 17,217$ 115,637(4,626)$ 111,011

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, 2020 and 2019 were as Follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Deferred tax assets
Net defined benefit liability
The investment deduction of the foreign consolidated subsidiaries
Inventories
Accrued employees’ bonuses
Investment securities
Tangible fixed assets
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)

2020

2019

2020

¥ 22,069
12,021
8,448
6,965
6,443
1,935
7,510
65,391(20,321)45,070¥ 21,609
13,668
7,596
6,860
6,366
2,185
7,259
65,543(21,554)
43,989$ 204,346
111,310
78,22564,49559,66017,92469,514605,474(188,157)
417,317(20,082)(2,423)(5,981)(28,486)¥ 16,584(19,700)(2,451)(5,488)(27,639)¥ 16,350(185,951)(22,441)(55,371)(263,763)$ 153,554

3. T he Reconciliation Between the Statutory Income Tax Rate and the Effective Income Tax Rate for the Years
Ended March 31, 2020 and 2019 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

33

Fuji Electric Report Financials 2020

2020

2019

30.6 %
(3.8)
(5.7)
(0.1)
(2.1)
2.9
3.5
2.0
27.3 %

30.6 %
(3.6)
(2.8)
(0.1)
(0.4)
2.0
—
1.9
27.6 %

Note 17. Consolidated Statements of Comprehensive Income
Amounts reclassified to profit (loss) in the current period that were recognized in other comprehensive loss in the current or previous
periods and the tax effects for each component of other comprehensive loss 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
Reclassification adjustments
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 loss

2020

2019

2020

¥ 1,049
(58)
991
(383)
608

¥ (4,246)(931)(5,177)
1,395(3,782)$ 9,717(541)
9,176(3,538)
5,638

70
70
(21)
49

(532)
(532)
163
(369)

655
655
(201)
455

(4,574)0(4,574)—(4,574)(443)(1,300)(1,743)382(1,361)(42,358)0(42,358)—(42,358)(3,542)
1,373(2,169)638(1,531)(1,757)199(1,558)452(1,106)(32,802)12,717(20,085)
5,901(14,184)

299
103

68
133

2,775
948

402
¥ (5,046)201¥ (6,417)

3,722$ (46,727)

Note 18. Contingent Liabilities
Contingent liabilities as of March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Guarantees

2020

2019

2020

¥ 11,127¥ 15,169$ 103,034

Fuji Electric Report Financials 202034

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.”
In addition, finance leases other than those that were deemed to transfer the ownership of the leased assets to the lessees andcontracted before April 1, 2008, are accounted for by the method that is applicable to ordinary operating leases.
Pro forma information of those leased property such as acquisition cost, accumulated depreciation, accumulated impairment loss,
obligations under finance leases, lease expense, depreciation expense, interest expense and impairment loss on an “as if capitalized”
basis for the years ended March 31, 2020 and 2019 were as follows:(a) Acquisition cost and accumulated depreciation under finance leases:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Acquisition cost
Accumulated depreciation
Net leased property

2020

2019

2020

¥ 240
232
¥ 8

¥ 1,103
1,029¥
74$ 2,2252,144$81(b) Obligations under finance leases:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Due within one year
Due after one year
Total

2020

2019

2020

¥ 20
10
¥ 30

¥ 83
31
¥ 114

$ 188
95
$ 283

(c) Lease expense, depreciation expense and interest expense under finance leases:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Lease expense
Depreciation expense
Interest expense

2020

2019

2020

¥ 86
71
2

¥ 98
82
5

$ 797
660
23

(d) Method of calculating estimated depreciation expense
Depreciation is computed by the straight-line method over the lease period assuming no residual value.
(e) Method of calculating estimated interest expense
Interest expense is computed and allocated to each period using the interest method assuming interest expense to be the excess of totallease payments over the acquisition cost.

2. Operating Lease Transactions
The minimum rental commitments under noncancellable operating leases as of March 31, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Due within one year
Due after one year
Total

35

Fuji Electric Report Financials 2020

2020

2019

2020

¥ 1,604
2,705¥ 4,309¥ 2,2441,518¥ 3,762$ 14,858
25,041$ 39,899

Note 20. Segment Information
1. Segment Information

Distribution and Power and New Energy. These segments except
for Electronic Devices and Power and New Energy consist of 2 ormore business segments.
As of April 1, 2019, due to changes in the organizational
structure, the reporting segment of Power Electronics Systems— Energy Solutions and Power Electronics Systems — Industry
Solutions have been changed to Power Electronics Systems
Energy and Power Electronics Systems Industry, respectively.
Also, Power and New Energy, the name of the reporting
segment, has been changed to Power Generation.
The change in the name of the reporting segment will not affectthe segment information.
The reporting segment information for the year ended March
31, 2019 has been reclassified to reflect this change.

(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 allocation andto assess performance. The Company has business headquarters
by products and services at its head office. The businessheadquarters prepare comprehensively global strategies related totheir products and services and control their business activities.
Accordingly, the Companies have five reporting segments,
principally based on the business headquarters, that take into
account the similarity of category and nature of products andservices: Power Electronics Systems Energy, Power Electronics
Systems Industry, Electronic Devices, Food and Beverage

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

Main products and services

Power Electronics Systems Energy

Power distribution, smart meters, industrial substation, railway substation, industrial power
supplies, datacenters, uninterruptible power systems (UPSs), electrical facilities, switchboards,
power distribution and control equipment

Power Electronics Systems Industry

Inverters, motors, FA components (servos/ controllers), measuring instruments and sensors,
FA systems drive control systems, measuring and control systems, transport systems, radiation
monitoring systems, electricity and air conditioning equipment construction, information
systems

Electronic Devices

Power semiconductors, magnetic disks

Food and Beverage Distribution

Beverage vending machines, vending machines for food and other goods, store equipment,
currency handling equipment

Power Generation

Geothermal power generation, hydroelectric power generation, solar power generation, wind
power generation, fuel cells, thermal power generation(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 calculated based on operating income in the
consolidated statements of income. Intersegment sales and transfer are determined by market value.
(3) Information on net sales, profit or loss, assets, liabilities and other items by each reporting segment
Reporting segment information as of March 31, 2020 and 2019 and for the years then ended were as follows:
Millions of yen

Year ended March 31, 2020

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
Systems
EnergyPower
Electronics
Systems
Industry

Electronic
Devices

Food andBeverageDistribution

Power
Generation

OthersTotal¥ 214,851¥ 307,013¥ 134,384¥ 104,052¥ 109,278¥ 31,026

3,162
218,013¥ 12,322¥ 201,907

10,469317,482¥ 16,547¥ 275,030

3,037
137,421¥ 9,718¥ 202,694

361
104,413¥ 3,842¥ 88,336

613
109,891¥ 2,298¥ 74,046

¥

5,679

¥

6,059

¥ 15,071

¥

2,399

¥

¥ 10,051¥ 6,865

¥
¥

1,722
7,677

¥
—
¥ 31,739

¥
¥

—
2,633

¥
¥

Adjustments

Consolidated¥ 900,604¥¥ 900,604

29,82060,846¥ 2,697¥ 35,013

47,462
948,066¥ 47,424¥ 877,026(47,462)—(47,462) 900,604¥ (4,909) ¥ 42,515¥ 119,801 ¥ 996,827

1,216

¥

885

¥ 31,309¥

1,010¥ 32,319

—
1,087

¥
¥

—
698

¥ 11,773¥ 50,699

¥
¥

—
868

¥ 11,773¥ 51,567—

Fuji Electric Report Financials 202036

Millions of yen

Year ended March 31, 2019

Power
Electronics
Systems
EnergyPower
Electronics
Systems
Industry

Electronic
Devices

Food andBeverageDistribution

Power
Generation

OthersTotal¥ 219,758¥ 309,572¥ 133,828¥ 113,345¥ 106,921¥ 31,491

4,378
224,136¥ 16,829¥ 204,522

12,910322,482¥ 19,417¥ 264,054

3,506
137,334¥ 15,623¥ 172,699

261
113,606¥ 5,756¥ 78,733

91
107,012¥ 4,750¥ 116,144¥

Adjustments

Consolidated¥ 914,915¥—¥ 914,915

30,73962,230¥ 2,767¥ 33,960

51,885966,800¥ 65,142¥ 870,112(51,885)(51,885)¥ (5,170)¥ 82,547—
914,915¥ 59,972¥ 952,659

1,367

¥

874

¥ 29,842¥ 1,064¥ 30,906

—
1,193

¥
¥

—
929

¥ 16,254¥ 38,669

¥
¥

—
869

¥ 16,254¥ 39,538

Adjustments

Consolidated$ 8,338,926$$ 8,338,926

276,105
563,365$ 24,950$ 324,173

439,464
8,778,390$ 439,116$ 8,120,610(439,464)—(439,464) 8,338,926$ (45,458) $ 393,658$ 1,109,275 $ 9,229,885

11,267$8,163$ 289,896

$

9,360

$ 299,256—
10,072

$
$

—
6,442

$ 109,012$ 469,436

$
$

—
8,040

$ 109,012$ 477,476

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

5,668

¥

6,267

¥ 13,168

¥

2,498

¥

¥ 14,828¥ 6,443

¥
¥

1,426
7,006

¥
—
¥ 20,451

¥
¥

—
2,647

¥
¥

Year ended March 31, 2020

Power
Electronics
Systems
EnergyPower
Electronics
Systems
Industry

Electronic
Devices

Food andBeverageDistribution

Power
Generation

OthersTotal$ 1,989,369$ 2,842,714$ 1,244,298$ 963,449$ 1,011,836$ 287,260

29,2792,018,648$ 114,100$ 1,869,518

96,9412,939,655$ 153,216$ 2,546,576

28,123
1,272,421$ 89,982$ 1,876,804

3,343
966,792$ 35,581$ 817,927

5,673
1,017,509$ 21,287$ 685,612$

52,586$

56,106$ 139,553$ 22,221$$$

93,06463,569$$15,94871,090$—$ 293,880$—$ 24,383$$

Thousands of U.S. dollars (Note 3)

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—

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

2020

2019

2020

¥(4,932)¥(5,187)$(45,675)

23

17

217

¥(4,909)¥(5,170)$(45,458)* Corporate expense mainly consisted of administration cost of the Company.
Thousands of
U.S. dollars (Note 3)

Millions of yen

Corporate assets*

2020

2019

2020

¥ 266,851¥ 262,858$ 2,470,846

Elimination of intersegment transactions
Total(147,050)¥ 119,801¥(180,311)(1,361,571)

82,547$ 1,109,275* Corporate assets mainly consisted of invested cash surpluses (cash and cash equivalents), long-term invested assets (investment securities), assets relating to administration department and assets of a financing subsidiary company.
3. Segment profits (losses) were reconciled to operating income (loss) in the consolidated statements of income.

37

Fuji Electric Report Financials 2020

2. Related Information
Related information as of March 31, 2020 and 2019 and for the years then ended 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

2020

2019

2020

¥ 679,719
124,623
62,64418,961
14,657¥ 900,604¥ 682,503
121,733
78,36816,477
15,834¥ 914,915$ 6,293,695
1,153,895
580,046
175,569
135,721$ 8,338,926

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

2020

2019

2020

¥ 160,998
26,505
13,214598
577¥ 201,892¥ 141,585
24,90014,354660
625¥ 182,124$ 1,490,729
245,393
122,359
5,545
5,348$ 1,869,374

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, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2019

2020

34
572
—
—
1,636
—
¥ 2,242

$—
—
—
—
—
—
$—

2020

Power Electronics Systems Energy
Power Electronics Systems Industry
Electronic Devices
Food and Beverage Distribution
Power and New Energy
Others
Total

¥

¥—
—
—
—
—
—
¥—

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, 2020 and2019 were as follows:
Millions of yen

Year ended March 31, 2020

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Food and BeverageElectronic Devices
Distribution
Power Generation

Amortization
Balance as of March 31

¥ 292
¥ —

¥ 455
¥ 6,642

Year ended March 31, 2019

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Amortization
Balance as of March 31

¥ 292
¥ 292

¥ 134
¥ 580

Year ended March 31, 2020

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Electronic Devices

Amortization
Balance as of March 31$ 2,712$—$ 4,221$ 61,507

$ 89
$ 486

¥ 11
¥ 53

¥—
¥—

¥—
¥—

OthersConsolidated

¥—
¥—

¥ 758
¥ 6,695

OthersConsolidated

¥—
¥—

¥ 623
¥ 936

OthersConsolidated$—$—$ 7,022$ 61,993

Millions of yen
Food and BeverageElectronic Devices
Distribution
Power Generation

¥ 11
¥ 64

¥—
¥—

¥186
¥—

Thousands of U.S. dollars (Note 3)
Food and Beverage
Distribution
Power Generation

$—
$—

$—
$—

5. Information on gain on negative goodwill by each reporting segment
None
Fuji Electric Report Financials 202038

Note 21. Information on Transactions with Related Parties
For the year ended March 31, 2020
Transactions with the Company’s consolidated subsidiaries and related parties were as follows:
Capital or investments in capitalType

Affiliated company

Name

Location

METAWATER
Co., Ltd

Chiyoda-ku,
Tokyo

Millions of yen

Thousands of
U.S. dollars (Note 3) Business description¥11,946$110,618

Accounts

Ending balance(Millions of yen)

—

—

—

—

Plant
Engineering

Holding ratio ofvoting rights(Owned)24.4

Relationship

Production sales
Interlocking directors

Amounts
Transaction

Thousands of
U.S. dollars (Note 3)

Millions of yen(Proceed)

Sale of securitiesof the affiliatedcompany¥7,484$69,300(Gain)¥1,772$16,416

Note: This transaction was due to the sale of a portion of the Company’s shares in response to the tender offer for treasury stock by Metawater Co., Ltd.

Note 22. Business Combinations
Business Combination by Acquisition
1. Overview of the business combination(1) Name of the acquired company and description of its business
Name of the acquired company : Consul Neowatt Power Solutions Private Limited (CNPS)
Description of business: Development, manufacturing, engineering, sales, and service of UPSs, servo voltage stabilizers, active
harmonic filters, off-grid solar inverters and other customized power electronic solutions.
(2) Major reason for the business combination
CNPS is a leading manufacturer of power supply equipment in India. Uninterruptible power systems (UPSs), which is the CNPS’s main
product, is winning the first place of the domestic market share in the country. CNPS is also achieving many business results of sales
to manufacturing, medical and social infrastructure industries etc. in India. The company is expanding its power electronics systems
business in India through obtaining CNPS’s price competitive products, manufacturing bases and sales and service bases which arelocating throughout India mainly targeting on markets of manufacturers and data centers, which is active in recent years.
(3) Date of the business combination
August 30, 2019(4) Legal form of the business combination
Share acquisition in consideration of cash(5) Name of the company after the business combination
Fuji Electric Consul Neowatt Private Limited(6) Percentage of voting rights acquired
100%(7) Basis for determining an acquiring company
The Company acquired the shares in consideration of cash.
2. Period of acquiree’s results included in the consolidated financial statements
From October 1, 2019 to March 31, 2020

39

Fuji Electric Report Financials 2020

3. Acquisition cost
Consideration for acquisition
Acquisition cost

Cash

Millions of yen

Thousands of
U.S. dollars (Note 3)¥ 9,458¥ 9,458$ 87,575$ 87,575

Millions of yen

Thousands of
U.S. dollars (Note 3)¥ 163$ 1,5114. Major acquisition-related cost
Advisory fees and others

5. Amount of goodwill incurred, reasons for the goodwill incurred and the method and period of amortization(1) Amount of goodwill incurred

Millions of yen

Thousands of
U.S. dollars (Note 3)¥ 6,610$ 61,209

Millions of yen

Thousands of
U.S. dollars (Note 3)¥ 3,225419¥ 3,644¥ 2,52856¥ 2,584$ 29,863
3,881$ 33,744$ 23,414
513$ 23,927(2) Reason for the goodwill incurred
Arose from excess profitability expected from future business development(3) Method and period of amortization
Goodwill is amortized by the straight-line method over 10 years.
6. Assets acquired and liabilities assumed on the date of the business combination
Current assets
Non-Current assets
Total assets
Current liabilities
Non-Current liabilities
Total liabilities

7. Details of cotingent consideration specified in the business combination agreement and accounting policies
Based on the share transfer agreement, additional payment will be made as certain events occur in the future. In addition, if there is achange in the consideration for acquisition, the acquisition cost, goodwill amount and goodwill amortization amount are adjusted as if it
had been paid at the time of acquisition.
8. Effect on the consolidated statements of income assuming the business combination had been carried out on April1, 2019,
and the calculation method
The effect for the year ended March 31, 2020 was immaterial.

Fuji Electric Report Financials 202040

Note 23. 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 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 12 and 49 years and use a
discount rate equivalent to the interest rate of government bonds corresponding to the use period (0.3% 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, 2020 and 2019 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Balance at the beginning of the year
Increase due to acquisition of property, plant and equipment
Adjustment due to passage of time
Decrease due to fulfillment of obligations
Balance at the end of the year

2020

2019

2020

¥ 1,918—6(28)¥ 1,896¥ 1,9313
6(22)¥ 1,918$ 17,766—
60(263)$ 17,563

Note 24. Amounts Per ShareInformation of amounts per share as of March 31, 2020 and 2019 and for the years then ended were as follows:Yen

Net assets per share
Net income per share

U.S. dollars (Note 3)

2020

2019

2020

¥ 2,559.60
201.57¥ 2,470.65
281.89$ 23.700
1.866

Diluted net income per share in 2020 and 2019 are not disclosed because there is no potential common stock that has a dilutive effect.
The Company conducted an 1-for-5 common stock consolidation effective October 1, 2018.
Net assets per share and Net income per share are calculated assuming that the share consolidation was executed at the beginningof the year ended March 31, 2018.

41

Fuji Electric Report Financials 2020

Independent Auditor’s Report

Fuji Electric Report Financials 2020

42

43

Fuji Electric Report Financials 2020

Fuji Electric Report Financials 2020

44

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-0015b Published in Japan 2020.11