Fuji Electric Report Financials

2021

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..........................................................41

01

Fuji Electric Report Financials 2021

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

Millions of yen

Years ended March 31

2017

2018

2019

2020

Net sales¥ 837,765¥ 893,451¥ 914,915¥ 900,604

875,927$ 7,962,980

Japan

632,723

674,744682,503679,719654,020

5,945,639

2021

2021

Operating Results¥

Overseas

205,042

218,707

232,412220,885

221,9072,017,340

Operating income

44,70955,962

59,97242,515

48,595

441,779

Net Income Attributable to Owners of Parent

40,97837,76340,267

28,793

41,926381,154¥ 34,910¥ 35,620¥ 33,669¥ 34,457

27,14926,46543,33848,20835,890326,281

29,44530,15130,90632,31936,194

329,039

Cash flows from operating activities¥ 58,185¥ 53,146¥ 54,949¥ 46,087

Cash flows from investing activities

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

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

2

Depreciation and amortization*3¥

33,562$

305,114

Cash Flows¥

26,931$

23,477

244,827
213,435

Free cash flow

67,934

38,59633,501

18,46650,408458,262

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

16,918(39,518)(359,276)

Total assets*4¥ 886,663¥ 914,744¥ 952,659¥ 996,827¥ 1,051,952$ 9,563,209

Total net assets

323,863366,546

392,061

406,002461,254

4,193,224

Equity291,216

330,636

352,922

365,620

416,997

3,790,881

Net interest-bearing debt

141,578

130,177

124,850

153,617140,872

1,280,658

Interest-bearing debt

183,465

163,507

153,985

217,364

216,205

1,965,503

Ratio of operating income to net sales (%)

5.3

6.3

6.6

4.7

5.5

—

ROE (Return on equity) (%)

15.7

12.1

11.8

8.0

10.7

—

ROA (Return on assets) (%)*4

4.7

4.2

4.3

3.0

4.1

—

Equity ratio (%)*

32.8

36.1

37.0

36.7

39.6

—

Net debt-equity ratio (times)*5

0.5

0.4

0.4

0.4

0.3

—

Debt-equity ratio (times)*6

0.6

0.5

0.4

0.6

0.5

—

Financial Position

Financial Indicators

4

Per Share Data *7
Net income

U.S. dollars*1

¥

57.36

¥ 264.34¥ 281.89¥ 201.57

Net assets

407.682,314.50

2,470.65

2,559.60

2,919.34

26.539Cash dividends

11.00

14.00

48.00

80.00

85.00

0.773

Employees

26,50327,00927,41627,96027,593—

Japan

17,716

17,704

17,647

17,681

17,647—

Overseas

8,787

9,305

9,769

10,279

9,946

—

¥

293.52$

2.668

Others*1 The U.S. dollar amounts represent the arithmetic results of translating yen into dollars at ¥110 = U.S. $1, the approximate exchange rate at March 31, 2021.
*2 Plant and equipment investment is the total of investment in tangible fixed assets, including acquisition amounts for lease contracts.
*3 Depreciation and amortization expense is the total of the depreciation of tangible fixed assets and amortization of intangible assets.
*4 E
 ffective April 1, 2018, the Company have adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, revised on February 16,2018). As such, major management indicators in consolidated accounting period as of March 31, 2018 have been adjusted to retroactively apply said accounting standards.
*5 Net debt-equity ratio is the ratio of net interest-bearing debt (interest-bearing debt + lease obligations – cash and cash equivalents) to equity.
*6 Debt-equity ratio is the ratio of interest-bearing debt to equity.
*7 Effective October 1, 2018, the Company conducted an 1-for-5 common stock consolidation. Amounts for net income per share and net assets per share have been calculated
assuming that the stock consolidation took place on April 1, 2017. The amount of dividend ¥48 per share for the year ended March 31, 2019 is total of the interim dividend of ¥8
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 2021

02

Management’s Discussion and Analysis
Overview

Financial Performance
Net Sales
Net sales in fiscal 2020 decreased by 2.7%, to ¥875,927 million.
In the Power Electronics Systems Industry and Electric
Devices segments, net sales increased. However, in the PowerElectronics Systems Energy, Food and Beverage Distribution
and Power Generation segments, net sales decreased.
Domestic sales decreased by 3.8%, to ¥654,020 million.
Overseas sales increased by 0.5%, to ¥221,907 million.
The ratio of overseas sales increased by 0.8 percentage
points, to 25.3%.

In fiscal 2019, we launched a five-year Medium-Term
Management Plan called “Reiwa Prosperity 2023.” The final
year of the plan is fiscal 2023, when we will celebrate the100th anniversary of our founding. Under the plan, we arepromoting various growth strategies. These include focusing
resources on growth fields—namely, power electronics
systems and power semiconductors—while expanding ouroverseas business.
In fiscal 2020, the operating environment remained
challenging, with continued investment restraint in Japan andoverseas due to the global spread of COVID-19. Under thesecircumstances, economic activity in China resumed quickly inthe first half of the year, and there were signs of a recovery incapital investment in the manufacturing sector. In the second
half of the year, meanwhile, domestic demand for machine
tools increased, and demand for semiconductors in Japan andoverseas jumped significantly, bolstered by the electrification of
automobiles and the growing popularity of renewable energy.

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

837.8
750.0

24.5

(%)

893.5

914.9 900.6
875.9

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)

80.0

(%)

6.3
5.3

24.5

25.4

24.5

25.3

30

Cost of Sales, Selling, General and Administrative
Expenses and Operating Income
The cost of sales decreased by 3.7 percentage points,
to ¥654,661 million. The ratio of cost of sales to net sales
decreased by 0.8 percentage points, to 74.7%.
Selling, general and administrative expenses decreasedby 3.0%, to ¥172,670 million. The ratio of selling, generaland administrative expenses to net sales decreased by 0.1
percentage point, to 19.7%.
Operating income increased by ¥6,080 million, to ¥48,595
million, primarily due to cost and fixed expenses reduction,
despite a decrease in net sales. The operating marginincreased by 0.8 percentage points, to 5.5%.

56.0

60.0

6.6

60.0

20

5.5

60.0

42.5

4.8
4.2

6
5

4.4

50.0

4.7

48.6

44.7
500.0

7

(%)

4.9

41.0
40.0

37.8

40.3

4

40.0

3.2

41.9

3

250.0

10

2

20.0

1
0

17/3

18/3

19/3

20/3

21/3

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

03

Fuji Electric Report Financials 2021

0

0

17/3

18/3

19/3

20/3

21/3

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

0

4

3

28.8

30.0

5

2
20.0
1

10.0

0

17/3

18/3

19/3

20/3

21/3

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

0Non-Operating Income (Expenses) and Ordinary Income
Non-operating income (net) was ¥1,806 million, a ¥192 million
decrease from ¥1,998 million in the previous fiscal year. Thisdecrease was primarily due to an increase in provision ofallowance for doubtful accounts for subsidiaries and affiliatesby ¥454 million and a ¥442 million of provision of allowancefor doubtful accounts for investment loss for subsidiaries andassociates, partially offset by a decrease in foreign exchange
loss of ¥947 million. As a result, ordinary income increased by¥5,888 million, to ¥50,401 million.
Extraordinary Income (Loss), Income before Income
Taxes and Non-Controlling Interests
Extraordinary income was ¥41,145 million, included gain on
sales of noncurrent assets and gain on sales of investment
securities. This represented a ¥38,374 increase due to anincrease in gain on sales of investment securities.
Extraordinary loss was ¥28,262 million, included loss
on disposal of noncurrent assets, loss on devaluation of
investment securities, impairment loss and cost of corrective
measures for product defects. This represented a ¥24,839
million increase due to impairment loss and cost of corrective
measures for product defects, partially offset by a decreasein loss on disposal of noncurrent assets and loss ondevaluation of investment securities.
Net Income
Income before income taxes increased by ¥19,424 million, to¥63,284 million. After subtracting ¥17,941 million of income
taxes (the net of income taxes-current and income taxesdeferred) and ¥3,417 million of net income attributable tonon-controlling interests, net income attributable to owners ofparent increased by ¥13,133 million, to ¥41,926 million.

Results by Business Segment
Power Electronics Systems Energy
Net sales: ¥209,229 million (a decrease of 4.0%)
Operating income: ¥14,018 million (an increase of ¥1,696 million)
Although net sales in all of the business units decreased,
operating income increased as a result of cost reduction.
• In the energy management business, net sales decreased
primarily due to large-scale orders for industrial power
supplies in the previous fiscal year and lower demand forsmart meters. However, operating income increased as aresult of cost reduction.
• In the facility / power source system business, net
sales decreased primarily due to large-scale orders forswitchboards. However, the operating income increased asa result of cost reduction.
• In the ED&C components business, net sales and operating
income decreased primarily due to lower demand in the firsthalf year, while demand from machine set manufacturers
was recovering in the second half year.
Orders received in fiscal 2020 (Power Electronics Systems
Energy segment of Fuji Electric Co., Ltd., non-consolidatedbasis) totaled ¥112.1 billion.
Power Electronics Systems—Industry Solutions
Net sales: ¥345,884 million (an increase of 8.9%)
Operating income: ¥21,781 million (an increase of ¥5,234 million)
Net sales and operating income increased primarily due
to higher demand in the IT solutions business, the factory
automation business and the social solutions business,partially offset by a decease in net sales in the equipment
construction business due to suspensions of investment bycustomers.
• In the factory automation business, net sales and operating
income increased primarily due to higher demand for
FA components in China, while lower demand in thedomestic market.

Net Sales by Segment

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

1,000.0

900.6
60.8

875.9

109.9
800.0

104.4
137.4

600.0

80.0

52.7
80.4
76.6

OthersPower Generation

157.5

Electronic Devices

Food and Beverage Distribution

70.0

48.6

60.0
50.0

42.5

40.0

317.5

400.0

345.9

Power Electronics Systems Industry

30.0

16.5

20.0

200.0

0

218.0

209.2

Power Electronics Systems Energy

-47.5

-46.3

Adjustments

2.7
2.3
3.8
9.7

2.2
2.5

OthersPower Generation

17.7

Electronic Devices

21.8

Power Electronics Systems Industry

10.0

12.3

14.0

Power Electronics Systems Energy

0

-4.9

-5.3
-4.3

Food and Beverage Distribution
Adjustments-10.0-200.0

20/3

21/3

20/3

21/3

Fuji Electric Report Financials 202104• In the social solutions business, net sales and operating
income increased due to higher demand for the scrubber
systems and the electrical products for transport systems.
• In the equipment construction business, net sales decreased
due to suspensions of investment by costumers and largescal orders for electricity equipment constructions in theprevious fiscal year. However, operating insomes increased
due to cost reduction.
• In the IT solutions business, net sales and operating income
increased due to large-scale orders for the GIGA (global andinnovation gateway for all) school plan in the academic sector.
Orders received in fiscal 2020 (Power Electronics Systems
Industry segment of Fuji Electric Co., Ltd., non-consolidatedbasis) totaled ¥137.7 billion.
Note: From the third quarter of the current fiscal year, the Scrubber system business
was transferred from the factory automation business to the social solutions
business and the figures were changed after the transfer of the figures in theprevious fiscal year.

Electronic Devices
Net sales: ¥157,484 million (an increase of 14.6%)
Operating income: ¥17,652 million (an increase of ¥7,934 million)• In the electronic devices business, net sales and operating
income increased, primarily due to higher demand for newenergy markets and factory automation, while increasing in
expenses for investment relating to power semiconductor
production capacity enhancement for electric vehicles (xEV).
Food and Beverage Distribution
Net sales: ¥76,556 million (a decrease of 26.7%)
Operating loss: ¥5,280 million (a decrease of ¥9,122 million)
Net sales and operating income decreased due to sharply
fallen demand caused by restraints of investment andsuspensions of delivery by costumers, which were attributable
to the continuous effect of the COVID-19.

Power Generation
Net sales: ¥80,352 million (a decrease of 26.9%)
Operating income: ¥2,517 million (an increase of ¥219 million)• In the power generation plant field, net sales decreased
primarily due to large-scale orders for thermal power
generation and renewable energy. However, operating
income increased as a result of the favorable sales mix,
despite the fact the COVID-19 caused extensions ofconstruction and the cost increased.
Orders received in fiscal 2020 (Power Generation segmentof Fuji Electric Co., Ltd., non-consolidated-basis) totaled¥80.6 billion.
Others
Net sales: ¥52,695 million (a decrease of 13.4%)
Operating income: ¥2,215 million (a decrease of ¥482 million)

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

Plant and Equipment Investment /Depreciation and Amortization

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

40.0

34.9

(%)

35.6

8

33.7

34.5

4.0

20.0

3.7

3.8

3.8

10.0

0

18/3

19/3

20/3

21/3

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

Fuji Electric Report Financials 2021

461.3

500.0

35.9 36.2

40.0

30.2
29.4
26.5

30.9

366.5

400.0

392.1

50

406.0
40

323.9

32.3

30.0 27.1

300.0

20.0

200.0 15.7

30

4

2

17/3

50.0

(%)

43.3
6

4.2

48.2

33.6

30.0

05

• In the vending machine business, net sales and operating
income decreased primarily due to restraints of investment
by domestic beverage manufacturers and lower demand in
China and Asia.
• In the store distribution business, net sales and operating
income decreased primarily due to lower demand forstore equipment for convenience stores and suspensionsof delivery.
Orders received in fiscal 2020 (Food and Beverage
Distribution segment of Fuji Electric Co., Ltd., nonconsolidated-basis) totaled ¥69.8 billion.

0

10.0

0

20

12.1

11.8

100.0

17/3

18/3

19/3

Plant and Equipment Investment
Depreciation and Amortization

20/3

21/3

0

17/3

18/3

Total Net Assets (left)
ROE (right)

19/3

8.0

20/3

10.7
10

21/3

0

In the Power Electronics Systems segment, we completed
construction of an engineering center at the Chiba Factory
to strengthen our energy-related products. To accelerate
product development of high-capacity UPSs for data centers,
we introduced high-capacity testing equipment at the Tokyo
Factory. In addition, we started construction of a plantsystem building at the Tokyo Factory aimed at establishingan integrated production system to expand sales of theswitchgear and control-gear system.

R&D Investment and Plant andEquipment Investment
R&D
We focus on research and development activities thatcreate solutions producing value for customers by utilizing
the synergies of power electronics technology and power
semiconductor technology as well as combined elemental
technologies.
We improve our real technology, deepen the latest digitaltechnology and accelerate to expand an application ofanalytics and AI. In addition, we contribute to creations ofclean energy, stable supplies, automations to the consumer
side and energy and cost savings.
The Company’s R&D expenditures in fiscal 2020 totaled¥33,562 million.
As of March 31, 2021, the number of our industrial property
rights registered in Japan and overseas was 13,398.

Financial Position
Total Assets
As of March 31, 2021, total assets was ¥1,051,952 million, an
increase ¥55,125 million from the the previous fiscal year-end.
Current Assets and Current Liabilities
Total current assets increased by ¥33,515 million from theprevious fiscal year-end, to ¥629,207 million. This increase
was primarily due to an increase of ¥11,586 million in cash
and cash equivalents and ¥25,140 million in trade receivables,
partially offset by a decrease of ¥4,923 million in inventories.
Total current liabilities decreased by ¥66,744 million
from the previous fiscal year-end, to ¥356,416 million. Thisdecrease was primarily due to a decrease of ¥12,654 million
in trade payables, ¥53,170 million in short-term debt and¥12,929 million in current portion of long-term debt, partially
offset by an increase of ¥15,479 million in provision for
product warranties.

Plant and Equipment Investment
In fiscal 2020 , we made investments totaling ¥35,890 million,
including plant and equipment investment and leases, mainly
to increase the production capacity of electronic devices
and to strengthen the product competitiveness of powerelectronics systems. Major investments were as follows.
In the Electronic Devices segment, we continued making
large-scale investments in the Yamanashi Factory, as we did in
the previous year, aimed at increasing production capacity of
power semiconductor chips, mainly for automobiles. In backend processes, we made investments to increase productionof pressure sensors for vehicles, air-conditioning IPMs, andhigh-capacity IGBT modules used in power conversion
equipment for power generation of renewable energy, in Japanand overseas.

Total Assets / ROA

Equity Ratio(Billions of yen)(%)

1,200.0

900.0

886.7
4.7

914.7

952.7

996.8

1,052.0

8

39.6
40.0

36.1

37.0

36.7

(Billions of yen)

217.4

30.0

4

20.0

2

10.0

0

0

100.0
300.0

0

17/3

18/3

Total Assets (left)
ROA (right)

19/3

3

4.1
3.0

20/3

21/3

(Times)300.0

200.0 183.5

4.3

600.0

(%)

32.8
6

4.2

Interest-bearing Debt /Debt-equity Ratio

17/3

18/3

19/3

20/3

21/3

0

0.6

17/3

163.5

216.3
2

154.0

1

0.5

18/3

0.4

19/3

0.6

0.5

20/3

21/3

0

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

Fuji Electric Report Financials 2021

06

Noncurrent Assets
Total noncurrent assets increased by ¥21,610 million from theprevious fiscal year-end, to ¥422,745 million. Net property,
plant and equipment was ¥209,758 million, an increaseof ¥7,866 million. Total investments and other assets was¥212,987 million, an increase of ¥13,744 million year-on-year.
This increase was primarily due to a ¥7,993 million increase ininvestment securities corresponding to an increase in valuationdifference on available-for-sale securities and a ¥5,960 million
increase in net defined benefit asset.
Long-term Liabilities
Total long-term liabilities increased by ¥66,617 million fromthe previous fiscal year-end, to ¥234,282 million. This
increase was primarily due to an increase in long-term debt
by ¥58,082 million.
Net Assets
As of March 31, 2021, net assets was ¥461,254 million, an
increase of ¥52,252 million from the previous fiscal year-end.
This increase was primarily due to an increase of ¥30,467
million in retained earnings and ¥11,155 million in valuationdifference on available-for-sale securities. As a result, theequity ratio was 39.6%, an increase of 2.9 percentage points.

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥26,931 million,
compared with ¥46,087 million in the previous fiscal year.
Major factors of cash decrease included payment of income
taxes, an increase in trade receivables and a decrease intrade payable. Major factors of cash increase included income
before income taxes and a decrease in inventories. Cash flows
from operating activities decreased by ¥19,156 million.
Cash Flows from Investing Activities
Net cash provided by investing activities was ¥23,477 million,
compared with net cash used in investing activities of ¥27,621
million in the previous fiscal year. This was primarily due toproceeds from sales of investment securities, while purchasingof property, plant and equipment. Net cash provided byinvesting activities increased by ¥51,098 million.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥39,518 million,
compared with net cash provided in financing activitiesof ¥16,918 million in the previous fiscal year. This wasprimarily due to an decrease in short-term loans payable andrepayments of lease obligations, while increasing proceedsfrom long-term loans payable. Net cash used in financing
activities increased by ¥56,436 million.

Debt
As of March 31, 2021, interest-bearing debt was ¥216,205
million, a decrease of ¥1,159 million. The ratio of interestbearing debt to total assets was 20.6%, representing a 1.2
percentage-points increase from the previous fiscal year-end.
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 ¥50,408 million, a ¥31,942 million
increase from the previous fiscal year’s positive free cash flowof ¥18,466 million.

Cash Flows

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

80.0
60.0

53.1

54.9

67.9

46.1

26.9

40.0
20.0

16.9

9.7

60.0

41.9
-14.6

-40.0

-80.0

-56.1
17/3

-21.4

-46.9

18/3

-38.2

19/3

38.6
33.5
33.3
29.1

-27.6

-39.5

20/3

21/3

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

07

50.4

40.0

-20.0

63.7

23.5

0

-60.0

75.3

80.0

58.2

Fuji Electric Report Financials 2021

18.5

20.0

0

17/3

18/3

19/3

Free Cash Flow
Cash and Cash Equivalents

20/3

21/3

Risk Factors
Fuji Electric manages business and other risks in acoordinated, systematic manner and takes appropriate
measures to minimize the impact of such risks. The following
factors were judged to have a potential future effect on Fuji
Electric’s business performance and financial position. Any
forward-looking statements in the following are based on the
judgment of management as of the date of submitting thesecurities report (June 25, 2021).
(1) M anagement Strategies, Business Strategies, andOperating Environment
Fuji Electric works to swiftly concentrate management
resources on businesses earmarked for growth while making
capital and R&D investments aimed at expanding anddeveloping its businesses. With respect to semiconductorrelated capital investments, which require large amountsof money, we make decisions based on negotiations
with customers regarding physical quantities and pricing.
Regarding R&D investments, we emphasize consistency withour business strategies and contribution to our businesses.
Based on our roadmap, we pursue R&D on fundamental andadvanced technologies that support Fuji Electric’s future. Here,the management engages in regular deliberations about key
development themes and constantly reviews the roadmap
according to market changes. However, the semiconductor
field is characterized by short product cycles, major
fluctuations in product supply/demand levels, and intensecompetition. In some cases, therefore, we may be unable
to recover our investment, which may affect its businessperformance and financial position.
Fuji Electric is contributing to realize a sustainable society
through our energy and environment related businesses,
considering protection of the global environment to be
an important management priority. Also, we promote ourEnvironmental Vision 2050, which aims to realize a low-carbon
society, recycling-oriented society, and a society in harmony
with nature, across the supply chain. Further, we announced
its support for the recommendations of the TCFD, Task Forceon Climate-related Financial Disclosures, and conduct risk
analysis. However, stricter enforcement of the Paris Agreement
and other environmental regulations, as well as assessments
by ESG evaluation institutions may lead to stronger criticism ofpart of Fuji Electric’s operations (coal-fired power generation
business), which may affect its business performance andfinancial position.
Fuji Electric has business bases around the world andprovides products and services to markets and customers in
multiple regions. The spread of COVID-19 in many countries
has led to emergency declarations, lockdowns, and otherrestrictions on economic activities. These have had various
effects on Fuji Electric’s business activities, including
restrictions on sales activities, factory operation suspensions,and limitations on construction site visits. If 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 202108

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

09

Fuji Electric Report Financials 2021

(8) Quality Assurance
Fuji Electric has established a quality control system for the
products it manufactures and sells and strives to ensure highquality standards. Although we have made the necessary
insurance arrangements, an unprecedented event could
cause quality-related problems to arise, which may affectour business performance and financial position. In addition,
regarding to the defect in some of our power semiconductors
in specific fields, which was disclosed in FY2021 3Q Financial
Results filed in Feb 12, 2021, we recorded JPY 25.7 billion
costs of corrective measures for product defects as a
extraordinary loss. The part of the costs was reasonably
estimated based on factors such as the application bycustomers of equipment in which the products wereincorporated and the usage conditions of such equipment.
However, events occurring which are not considered in theestimation may incur additional costs. We will appropriately
disclose the events when they have a material impact on ourbusiness performance and financial position.
(9) Human Resources and Labor
The business activities of Fuji Electric depend heavily on its
human resources. To attract and develop excellent humanresources in various fields —such as technology, production,
sales, and business management— we focus on cultivating
professional human resources who will help strengthen our
global competitiveness. We also actively conduct employee
education and training and are expanding mid-career
recruitment and other measures to attract exceptional humanresources. However, failure to attract and develop suchimportant human resources may have an impact on ourbusiness performance and financial position.
(10) Finance and Accounting
Seeking to minimize fund-raising costs, Fuji Electric
constantly examines the optimal mix of corporate bonds,
commercial paper, and short-term and long-term borrowings,
in order to ensure flexible and stable financing arrangements.
However, an unexpected increase in interest rates could
raise the interest rate burden on our interest-bearing debt,
which may have an impact on our business performance andfinancial position.
Fuji Electric works to strengthen credit management,
including by monitoring long-overdue receivables and thefinancial status of business partners, in order to enhance
its collection of trade receivables. However, restrictions on
economic activities and economic downturn could cause
business partners’ cash flows to deteriorate and prevent us
from recovering debts, which may have an impact on ourbusiness performance and financial position.

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

the intentions of stockholders and other investors may differ
from those of the Company’s management, which could resultin a vote against the election of directors. Also, a shareholder
proposal against management could cause disruption of ouroperations. These and other events may have an impact on
our business performance and financial position.
(14) Natural Disasters and Accidents
Fuji Electric has business bases all over the world and iscommitted to fulfilling its responsibilities to customers andsociety by continuously supplying products and services inthe event of disaster or accident. To this end, we establisheda dedicated crisis management team to spearhead fire anddisaster prevention efforts, formulation of a business continuity
plan (BCP), and adoption of necessary insurance arrangements
in order to “strengthen our business continuity capability.”
However, any number of events may have an impact on ourbusiness performance and financial position. These include
large-scale disasters or accidents at/near our businesssites, which could cause damage of production equipment,interruption of operations, and delays in product shipments.
(15) External Attacks
To address increasingly diversified and sophisticated cybersecurity threats, Fuji Electric established a countermeasuresystem and a security response organization (CSIRT/SOC) tomonitor and suppress any attacks. We are also continuously
strengthening our response capabilities —in such areas asdefense, detection system reinforcement, and cyber training—
to prepare for the emergence of new threats. However, any
number of events may have an impact on our businessperformance and financial position. These include system
malfunction and information leakage due to external attacks(such as cyber-terrorism), resulting in loss of social trust.
(16) Individual Event (Impact of COVID-19)
Fuji Electric has established a set of “Contingency Plan” toimplement in times of emergency resulting from various risks
that may affect its operations. Based on these procedures,
we set up the “New Coronavirus Infection Prevention
and Business Continuity Promotion Countermeasures
Headquarters,” chaired by the president, 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 2021

10

Consolidated Balance Sheets
As of March 31, 2021 and 2020

Thousands of
U.S. dollars(Note 3)

Millions of yen

2021

2020

2021

¥ 75,332
1,213
319,644(3,897)
183,190
53,725629,207¥ 63,746
327
294,504(2,597)
188,11351,599595,692$ 684,845
11,0292,905,860(35,427)
1,665,370
488,395
5,720,072

Less accumulated depreciation
Net Property, Plant and Equipment

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

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

323,066
2,355,883
2,006,689
975,390
35,72815,433
5,712,189(3,805,296)
1,906,893

Investments and Other Assets:
Investment securities (Notes 5, 6 and 7):
Unconsolidated subsidiaries and affiliates
Other
Long-term loans receivable
Net defined benefit asset (Note 2 and 11)
Deferred tax assets (Note 17)
Other investments and other assets (Note 20)
Allowance for doubtful accounts
Total Investments and Other Assets
Total Assets

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

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

179,779
1,059,151
5,955
191,301
133,476
370,780(4,198)
1,936,244$ 9,563,209

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 20)
Construction in progress
Others

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

11

Fuji Electric Report Financials 2021

Thousands of
U.S. dollars(Note 3)

Millions of yen

2020

2021

17,601
4,142
167,260
18,37635,23918,183
15,69879,917356,416¥ 70,771
17,071
179,914
15,66847,2036,625
219
85,689423,160$ 160,018
37,657
1,520,551
167,063
320,363
165,307
142,714
726,479
3,240,152

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

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

1,197,148
392,964
484,752
1,366
15,25738,3462,129,833
5,369,985

47,586—46,003271,772—
47,58645,949241,305

432,601—
418,216
2,470,657(7,340)—358,021—(7,327)
327,513(66,733)—
3,254,741

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

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

506,923
2,931
13,997
12,289536,140
402,343
4,193,224$ 9,563,209

2021

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 (Note 5 and 6)
Lease obligations (Notes 6 and 10)
Advances received
Income taxes payable (Note 17)
Provision for product warranties (Note 2)
Other current liabilities (Notes 17 and 24)
Total Current Liabilities
Long-term Liabilities:
Long-term debt (Notes 5, 6, and 9)
Lease obligations (Notes 6 and 10)
Net defined benefit liability (Note 2 and 11)
Provision for directors’ retirement benefits
Deferred tax liabilities (Note 17)
Other long-term liabilities (Note 24)
Total Long-term Liabilities
Total Liabilities¥

Contingent Liabilities (Note 19):
Net Assets (Note 25)
Shareholders’ Equity:
Capital stock (Note 12):
Authorized - 320,000,000 shares
Issued - 149,296,991 shares as of March 31, 2021
149,296,991 shares as of March 31, 2020
Capital surplus
Retained earnings
Treasury stock at cost (Note 12) :6,457,667 shares as of March 31, 2021
6,454,259 shares as of March 31, 2020
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 2021

12

Consolidated Statements of Income
Years ended March 31, 2021 and 2020

Thousands of
U.S. dollars(Note 3)

Millions of yen

2021

2020

2021

Net Sales
Cost of Sales (Note 13)
Gross Profit¥ 875,927
654,661
221,266¥ 900,604
680,068
220,536$ 7,962,980
5,951,467
2,011,513

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

172,671
48,595

178,02142,515

1,569,734
441,779

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

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

26,871(13,104)(4,673)(4,025)(3,454)
15,256(458)
16,413458,192

12,88363,284(653)
43,860117,122575,314

17,94145,343

11,98931,871

163,108
412,206

3,417¥ 41,926

3,078¥ 28,793

31,052$ 381,154

Non-Operating Income (Expenses):
Interest and dividend income
Interest expense
Provision of allowance for doubtful accounts for subsidiaries and affiliates
Provision of allowance for investment loss for subsidiaries and affiliates
Foreign exchange gains (losses)
Equity in earnings of affiliates
Other, net
Ordinary Income
Extraordinary Income (Loss), Net (Note 15 and 16)
Income Before Income Taxes
Income Taxes (Note 17)
Net Income
Net Income Attributable To Non-controlling Interests
Net Income Attributable To Owners of Parent (Note 25)

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

13

Fuji Electric Report Financials 2021

Consolidated Statements of Comprehensive Income
Years ended March 31, 2021 and 2020

Thousands of
U.S. dollars(Note 3)

Millions of yen

Net Income

2021

2020

2021

¥ 45,342¥ 31,871$ 412,206

11,400
553
5,938
4,419

608
49
(4,574)(1,531)

103,642
5,034
53,96240,180

Other Comprehensive Income (Loss) (Note 18)
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 loss (income) of associates accounted forusing equity method
Total Other Comprehensive Income (Loss)
Comprehensive Income

(215)

402

(1,959)22,095¥ 67,437(5,046)¥ 26,825

200,859$ 613,065

Comprehensive Income Attributable to:
Owners of parent
Non-controlling interests¥ 62,796
4,641¥ 24,254
2,571$ 570,877
42,188The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

Fuji Electric Report Financials 202114

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2021 and 2020

Thousands

Millions of yen

Number ofshares ofcapital stock

Capitalstock

CapitalsurplusRetainedearnings

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustments¥

Remeasurements ofdefinedbenefit plans

Treasury
stock

Total

Noncontrollinginterests

Total
net assets

Balance at March 31, 2019

149,296¥47,586¥46,067¥223,940¥43,974¥(280)

368¥(1,417)¥(7,316)¥352,922¥39,139¥392,061

Net income attributable toowners of parent

—

—

—

28,793

—

—

—

—

—

28,793—

28,793

Change of scope of
consolidation

—

—

—

—

—

—

—

—

—

—

—

—

Cash dividends

—

—

—

(11,428)

—

—

—

—

—

(11,428)—(11,428)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(11)

(11)

—

(11)

Sales of treasury stock

—

—

1

—

—

—

—

—

0

1

—

1

Capital increase of
consolidated subsidiaries

—

—

—

—

—

—

—

—

—

—

—

—

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)

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

149,296¥47,586¥45,949¥241,305¥44,606¥(231)¥(3,544)¥(2,724)¥(7,327)¥365,620¥40,382¥406,002

Net income attributable toowners of parent

—

—

—

41,926

—

—

—

—

—

41,926—41,926

Change of scope of
consolidation

—

—

—

(33)

—

—

—

—

—

(33)

—

(33)

Cash dividends

—

—

—

(11,426)

—

—

—

—

—

(11,426)—(11,426)

Purchase of treasury stock

—

—

—

—

—

—

—

—

(13)

(13)

—

(13)

Sales of treasury stock

—

—

1

—

—

—

—

—

0

1

—

1

Capital increase of
consolidated subsidiaries

—

—

53

—

—

—

—

—

—

53

—

53

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

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

11,155

553

5,086

4,075

—

20,8693,875

24,744¥47,586¥46,003¥271,772¥55,761¥ 322¥ 1,542¥1,351¥(7,340) ¥416,997¥44,257¥461,254

Net changes of items otherthan shareholders’ equity
Balance at March 31, 2021

149,296

Thousands of U.S. dollars (Note 3)

Balance at March 31, 2020

$432,601

Net income attributable toowners of parent—$417,722 $2,193,690 $405,518—

381,154—$(2,103)$(32,230)$(24,769)

—

—

—

—

381,154—

381,154

Change of scope of
consolidation

—

—

(301)

—

—

—

—

—

(301)

—

(301)

Cash dividends——(103,886)

—

—

—

—

—

(103,886)—(103,886)(125)

Purchase of treasury stock

—

—

—

—

—

—

—

(125)

(125)

—

Sales of treasury stock

—

10

—

—

—

—

—

5

15

—

15

Capital increase of
consolidated subsidiaries

—

484

—

—

—

—

—

—

484

—

484

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

—

—

—

—

—

—

—

—

—

—

—

Net changes of items otherthan shareholders’ equity

—

—

—

101,405

5,034

46,22737,058—

189,724

35,228

224,952$418,216 $2,470,657 $506,923$ 2,931$ 13,997$ 12,289

Balance at March 31, 2021

$432,601

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

15$(66,613) $3,323,816 $367,115 $3,690,931

Fuji Electric Report Financials 2021$(66,733) $3,790,881 $402,343 $4,193,224

Consolidated Statements of Cash Flows
Years ended March 31, 2021 and 2020

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
Increase in provision for product warranties
Interest and dividend income
Interest expense
Foreign exchange losses
Gain on sales of noncurrent assets
Gain on sales of investment securities
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Impairment loss
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 provided by (used in) investing activities
Cash Flows from Financing Activities:
Net Decrease (increase) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation
Proceeds from share issuance to non-controlling shareholders
Other, net
Net cash (used in) provided by financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Increase in Cash and Cash Equivalents Resulting from Change of
Scope of Consolidation
Cash and Cash Equivalents at End of Year

2021

2020

2021

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

¥ 43,860
32,319352
60(2,830)
1,405
149
(245)
(2,525)
1,517
1,481
—

$ 575,314
329,039
11,528140,717(26,871)
13,104
1,863(2,550)(371,500)
5,022
9,258
8,757

(20,852)
7,513(15,881)(12,185)864
35,762
2,959(1,416)(10,374)
26,931

12,127(11,873)(15,159)
1,557
(960)
61,2352,830(1,396)(16,582)
46,087(189,567)
68,308(144,374)(110,779)
7,844
325,113
26,903(12,873)(94,316)
244,827(20,578)622(28)
49,230—(3,418)2,802(5,153)
23,477(22,699)
741
(638)
8,956
(9,422)(7,825)
7,768(4,502)(27,621)(187,076)
5,656
(263)
447,550—(31,074)
25,478(46,836)
213,435(54,178)
62,165(2,156)(15,000)(17,882)1(13)(11,426)(1,134)

41,20330,126(26,663)—(14,625)1(11)(11,428)(1,442)(492,528)
565,140(19,608)(136,364)(162,572)
15(125)(103,885)(10,310)

—

(242)

—

105
—
(39,518)680
11,57063,746—(1)
16,918(772)
34,612
29,134962(1)(359,276)
6,188
105,174
579,519

16

—

152

¥ 75,332¥ 63,746$ 684,845

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

Fuji Electric Report Financials 2021

16

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

Note 2. Summary of Significant Accounting Policies
a. Principles of Consolidation
The consolidated financial statements for the year ended March
31, 2021 include the accounts of the Company and its 74
significant subsidiaries and its 4 subsidiaries and affiliates areaccounted for by the equity method (73 and 4 in 2020).
Under the control or influence concept, the accompanying
consolidated financial statements include the accounts of theCompany and, with minor exceptions, those of its subsidiaries,
whether directly or indirectly controlled, and those companies
over which the Companies have the ability to exercise significant
influence are accounted for by the equity method. All significant
intercompany balances and transactions have been eliminatedin consolidation. All material unrealized profits included in assets
resulting from transactions within the Companies are eliminated.
The Company does not consolidate nor apply the equity method
to subsidiaries or affiliates whose gross assets, net sales, net
income (loss) and retained earnings are not significant to theconsolidated financial statements.
Investments in unconsolidated subsidiaries and affiliates arestated at cost.
The balance sheet date of certain consolidated subsidiaries is
December 31 or January 31. In principle, the financial statementsof such subsidiaries were tentatively prepared in accordance withthe fiscal year of the Company, and those were consolidated.
In the elimination of investments in subsidiaries, theassets and liabilities of the subsidiaries, including the portion
attributable to non-controlling shareholders, are evaluated using
the fair value at the time the Company acquired control of therespective subsidiaries.
Goodwill resulting from the difference between the cost andthe underlying net assets at the respective dates of acquisition arebeing amortized over a period of 5 or 10 years.

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

c. Inventories
Raw materials are mainly stated at cost, determined by themost recent purchase price method. Finished goods and workin process are mainly stated at actual cost determined byaccumulated production cost for contract items or average costfor regular production items, except that finished goods of certain
consolidated subsidiaries are priced by the most recent purchase17

Fuji Electric Report Financials 2021

price 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 currencytransactions are classified and accounted for as follows:a) E xcept as described in the following paragraphs b) and c),
all derivatives are recognized as either assets or liabilities
and measured at fair value, and forward contracts applied
for forecasted transactions are measured at fair value but
the unrealized gains/losses are deferred until the underlying
transactions are completed if the forward contracts qualify
for hedge accounting.
b) Trade receivables and trade payables denominated inforeign currencies for which foreign exchange forward
contracts are used to hedge the foreign currency
fluctuations are accounted for allocation treatment ("Furiate
shori") where these receivables and payables are translated
at the contracted rate if the forward contracts qualify forhedge accounting.
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

m. Income Taxes

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.

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

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.

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

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

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

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

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

j. Retirement Benefits(1)	The retirement benefit obligation for employees is attributed toeach period by the benefit formula method over the estimatedyears of service of the eligible employees.
(2)	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.

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

l. Recognition for Revenue and Costs
For the portion of work completed up to the end of the current
period for construction contracts for which completion isdeemed to be certain, the percentage-of-completion method isadopted (the cost-to-cost method is used in estimating progress
toward completion of construction). When the outcome of
the construction contracts can not be estimated reliably, thecompleted-contract method is adopted.

The Japanese consumption taxes withheld and consumption
taxes paid are not included in the accompanying consolidated
statements of income.

q. Adapting tax effect accounting for the transition from
Consolidated Tax Return Filing System to JapaneseGroup 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 the 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
31, 2020) paragraph 3. Therefore, the amount of deferred tax
assets and deferred tax liabilities were based on the tax law before
the revision.

r. 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

Fuji Electric Report Financials 2021

18

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.

s. Accounting Standard for Disclosure of Accounting
Estimates
1. Recognition of construction revenue based on thepercentage-of-completion method(1) Amounts recorded for the year ended March 31, 2021
Millions of yen

Construction revenues
Ending balance of constriction
contract receivableThousands of
U.S. dollars (Note 3)

2021

2021

¥ 66,897$ 608,159¥ 30,754$ 279,585

Note: T he above amounts are stated for incomplete or undelivered construction
contracts as of the end of the current fiscal year, to which the percentageof-completion method is applied. (Construction contracts which have been
completed and delivered are not included.)(2) Supplemental information for understanding the financial
statements
a. Calculation method
The Companies apply the percentage-of-completion method forthe portion of work completed up to the end of the current period
for construction contracts for which completion is deemed to becertain. Revenue for which the percentage-of-completion method
is applied is measured based on progress toward completionof construction, and progress toward completion is determinedbased on the ratio of costs incurred up to the end of the current
period to the estimate of the total cost of construction.
b. Principle assumption
The estimates of total construction costs are calculated byaccumulating objective prices such as third party quotations
and internally approved standard unit prices. However, thetotal construction costs are principle assumption because
the Companies also rely on our specialized knowledge of andexperience in construction.
c. Effect on the subsequent fiscal year
Since construction contract is, generally, long-term contract,
construction contracts may potentially be modified and there
may be fluctuations in material, labor, and other such costs whileconstruction is still in progress. Corresponding to changes in the
total construction costs, construction progress rates change andthe amount of revenue recognized in the subsequent fiscal year
may be affected.

2. P
 rovision for product warranties for costs of corrective
measures in response to defects in certain power
semiconductors for certain customers(1) Amounts recorded for the year ended March 31, 2021

Ending balance of the provision
for product warranties forcosts of corrective measuresin response to defects incertain power semiconductors
for certain customers

Millions of yen

Thousands of
U.S. dollars (Note 3)

2021

2021

¥ 15,476$ 140,691(2) Supplemental information for understanding the financial
statements
a. Calculation method
Considering expected product defects of power
semiconductors in specific fields, the Companies recorded
provision for product warranties to prepare for the expenditureof guarantee costs related to product quality.
b. Principle assumption
The provision for product warranties for costs of corrective
measures in response to defects was calculated by assuming ascope of incidence of the defect based on factors such as theapplication by customers of equipment in which the products
were incorporated and the usage conditions of such equipment,in consideration of reports of defects in products stemmingfrom procured parts inside of the products and arising in certain
environments in which the products were used.
c. Effect on the subsequent fiscal year
In the case of that assumptions used to estimate provision for
product warranties differ from actual results, financial statements
for the subsequent fiscal year may be affected.
3. Measurement of defined benefit obligation(1) Amounts recorded for the year ended March 31, 2021
Millions of yen

Net defined benefit asset
Net defined benefit liability
Remeasurements of defined
benefit plans

Thousands of
U.S. dollars (Note 3)

2021

2021

¥ 21,043¥ 53,322$ 191,301$ 484,752¥ 1,351$ 12,289(2) Supplemental information for understanding the financial
statements
a. Calculation method
The Companies primarily apply defined benefit plans. Defined
benefit obligation for defined benefit plans is estimated by
payment calculation standard, based on discount rates andactuarial assumptions, such as mortality rates, retirement rates,
salary inflation etc.
b. Principle assumption
Discount rates are computed by the yield curve equivalentapproach primarily based on high quality corporate bonds.

19

Fuji Electric Report Financials 2021

c. Effect on the subsequent fiscal year
In the case of that it is necessary to review discount rates, which
are used to calculate defined benefit obligation, net defined benefit
asset, net defined benefit liability and remeasurements of defined
benefit plans for the subsequent fiscal year may be affected.
Note: About the effects of novel coronavirus (COVID-19) pandemic
The novel coronavirus (COVID-19) pandemic has restricted economic activity on
an unprecedented scale in many countries. Due to the tough situation, we arefacing 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, theCompanies make accounting estimations based on the information available atthe end of the consolidated fiscal year and the assumption that the condition willcontinue for a certain period of the next consolidated fiscal year.

- “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
Financia l Instruments.” (Accounting Standard Board of Japan(“ASBJ”) statement No. 19 issued on March 31, 2020)

t. Accounting Standards Issued but not yet Effective- “Accounting Standard for Revenue Recognition” (AccountingStandard Board of Japan (“ASBJ”) statement No. 29 issued on
March 31, 2020)- “Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30 issued on March 26, 2021)- “Implementation Guidance on Disclosures about Fair Value of
Financial Instruments.” (ASBJ Guidance No. 19 issued on March
31, 2020)(1) Overview
International Accounting Standards Board (“IASB”) and
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 for the periods beginningon or after December 15, 2017. In light of these circumstances,
the ASBJ developed and issued a comprehensive
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)(1) Overview
The International Accounting Standards Board (IASB) and theUnited States Financial Accounting Standards Board (FASB)
provide detailed guidance on similar fair value 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). Based on the situation, the ASBJ improved
the comparability of financial statements, with regard to theguidance and disclosure mainly on the fair value of financial
instruments, between domestic and international accounting
standards, and issued “Accounting Standard for Fair Value
Measurement ” and relating accounting standards. The ASBJ’s
basic policy for developing accounting standard for fair value
measurement is to basically adopt all the provisions of IFRS 13
in order to improve the comparability of financial statements
between domestic and foreign companies by using a uniform
calculation method. It also stated that alternative accounting
treatment may be additionally adopted locally, to makeconsideration to the current Japanese practices if necessary,
provided such alternative treatments would not impair
international implementation guidance.
(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 undecided.

u. Changes in presentations(1) Consolidated Balance Sheets“Provision for product warranties” was previously included in“Other current liabilities” in “Current Liabilities.” Since its materiality
has increased, “Provision for product warranties” is represented
independently from the current fiscal year.In addition, to reflect thechange in presentation, previous financial statements have been
reclassified. As a result, “Other current liabilities” of ¥85,908 million
was reclassified to “Provision for product warranties” of ¥219
million and “Current Liabilities” of ¥85,689 million.

Fuji Electric Report Financials 202120

(2) Consolidated Statements of Cash Flows“Increase in provision for product warranties” was previously
included in “Other, net” in “Cash Flows from Operating
Activities.”Since its materiality has increased, “Increase in provision
for product warranties” is represented independently from thecurrent fiscal year. To reflect the change in presentation, previous
financial statements have been reclassified. As a result, “Other,
net” of negative ¥900 million was reclassified to “Increase inprovision for product warranties” of ¥60 million and “Other, net” ofnegative ¥960 million.

(3) A daption of “Accounting Standard for Disclosure of Accounting
Estimates”
From the year ended March 31, 2021, “Accounting Standard forDisclosure of Accounting Estimates” (Accounting Standard Boardof Japan (“ASBJ”) statement No. 31 issued on March 31, 2020) is
adapted and disclosed in “s. Accounting Standard for Disclosureof Accounting Estimates.” However, accounting estimates related
to the previous fiscal year are not described in accordance withthe accounting standard paragraph 3 supplemental rule forprovisional measures.

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¥110=U.S.$1, the approximate exchange rate as of March 31,
2021. The U.S. dollar amounts are presented solely for theconvenience of the readers outside Japan.

Note 4. Inventories
Inventories as of March 31, 2021 and 2020 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Merchandise and finished goods
Work in process
Raw materials
Inventories

2021

2020

2021

¥ 66,319
65,023
51,848¥ 183,190¥ 66,866
67,87553,372¥ 188,113$ 602,906
591,121471,343$ 1,665,370

Losses on valuation of inventories with lower profitability were ¥50 million ($461 thousand) and ¥489 million for the years ended March
31, 2021 and 2020, 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, 2021 and 2020 wereas follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

2020

2021

12
1,438
405
¥ 1,855

$ 194
5,327
3,440
$ 8,9612021

Investment securities
Property, plant and equipment
Intangible assets
Total

¥ 21
585
379
¥ 985

¥

Collateralized liabilities as of March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Trade payables
Short-term debt
Long-term debt
Total

21

Fuji Electric Report Financials 2021

2021

2020

2021

¥ 37
479
—
¥ 516

¥ 46
224
63
¥ 333

$ 338
4,355
—
$ 4,693

Note 6. Financial Instruments
1. Status of financial instruments(1) Policy regarding financial instruments
The Companies limit the scope of their cash and fundmanagement activities to short-term deposits. When raisingfunds, the Companies have a policy of relying principally onbank borrowings, bonds payable and commercial paper. The
Companies mainly raise the operating funds through short-termloans payable and commercial paper, and the funds relating tocapital investments through long-term loans payable and bonds
payable. The Companies make use of derivatives to reduce risk,
as explained below, and have a policy of not engaging in derivativetransactions for speculative purposes.
(2) Details of financial instruments and associated risk
In the course of its business activities, trade receivables are
exposed to customer credit risk.
In addition, trade receivables denominated in foreign currencies
arising from international business are exposed to exchangerisk. The Companies hedge the exchange risk, by using foreignexchange forward contracts within the range prescribed relating
to the net amount of the trade receivables denominated inforeign currencies, offset by the amount of the trade payables
denominated in the same currencies.
Short-term investments and investment securities 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 commodity swap 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.

(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
is no market price available, it includes prices which arereasonably 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.

Fuji Electric Report Financials 2021

22

2. Estimated fair value and other matters related to financial instruments
Carrying amounts on the consolidated balance sheets as of March 31, 2021 and 2020, 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

2021

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¥ 75,332
319,644
122,284(167,260)(17,601)(4,142)(18,376)(131,686)(43,226)¥ 75,332
319,611
136,587(167,260)(17,601)(4,142)(18,376)(131,785)(43,744)

(200)
464

(200)
464

Variance¥—(33)
14,303
—
—
—
—
99
518
—
—

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
—
—

Thousands of U.S. dollars (Note 3)

2021

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$ 684,845
2,905,860
1,111,678(1,520,551)(160,018)(37,657)(167,063)(1,197,148)(392,964)$ 684,845
2,905,561
1,241,700(1,520,551)(160,018)(37,657)(167,063)(1,198,047)(397,677)(1,826)
4,225(1,826)4,225(*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.

23

Fuji Electric Report Financials 2021

Variance

$

—
(299)
130,022
—
—
—
—
899
4,713
—
—

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

2021

2020

2021

Carrying amounts

Carrying amounts

Carrying amounts¥13,997¥14,777$127,252

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, 2021 and 2020:
Millions of yen

2021
Within 1 year

Between 1 and5 years

Between 5 and10 years

Over 10 years

—

¥ —

¥—

Cash and cash equivalents¥ 75,332

Trade receivables

313,253

5,920

470

—

¥ 388,585¥ 5,920¥ 470¥—

Between 5 and10 years

Over 10 years
¥—

Total

¥

Millions of yen

2020
Within 1 year

Between 1 and5 years

Cash and cash equivalents¥ 63,746—¥ —Trade receivables

286,796

7,191

515

—

¥ 350,542¥ 7,191

¥ 515

¥—

Total

¥

Thousands of U.S. dollars (Note 3)

2021
Within 1 year
Cash and cash equivalents
Trade receivables
Total

$

684,845

Between 1 and5 years$—

Between 5 and10 years$—

Over 10 years$—

2,847,754

53,827

4,279—$ 3,532,599$ 53,827$ 4,279$—

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.”

Fuji Electric Report Financials 2021

24

Note 7. Securities
1. Other securities as of March 31, 2021 and 2020 were as follows:
Millions of yen

2021

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

Cost

Carrying amounts

Unrealized gains

Unrealized losses¥ 31,558——¥ 31,558¥ 112,491——¥ 112,491¥ 81,413——¥ 81,413¥ (480)——¥ (480)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)

Thousands of U.S. dollars (Note 3)

2021

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

Cost

Carrying amounts

Unrealized gains

Unrealized losses$ 286,899——$ 286,899$ 1,022,649——$ 1,022,649$ 740,126——$ 740,126$ (4,376)——$ (4,376)

Note: T he following is not included in the preceding tables because it does not have market price and obtaining an estimated fair value is deemed to be extremely difficult:
Unlisted stocks (Values in the consolidated balance sheets as of March 31, 2021 and 2020 were ¥4,015 million ($36,501 thousand) and ¥3,971 million, respectively.)

2. Sales of other securities for the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Proceed from sales
Gain on sales
Loss on sales

2021

2020

2021

¥ 49,224
40,864(0)¥ 1,434718(10)$ 447,495
371,500(0)

3. Impairment of other securities for the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Impairment losses

25

Fuji Electric Report Financials 2021

2021

2020

2021

¥ 1,018¥ 1,481$ 9,258

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

2021

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

Contract amountContract amountover 1 year

Fair value

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

¥—
—
—
—

¥ (50)
(70)
(10)
(48)

¥ (50)
(70)
(10)
(48)

1,445
1,933
9
111
¥ 9,035

—
—
—
—
¥—

16
(39)
0
1
¥ (200)

16
(39)
0
1
¥ (200)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

Thousands of U.S. dollars (Note 3)2021

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

Contract amountContract amountover 1 year

Fair value

Unrealized
gain/loss$ 9,185
17,115
3,091
20,934

$—
—
—
—

$

$

13,144
17,58085
1,010$ 82,144

—
—
—
—
$—

154
(363)
5
17
$ (1,826)

(462)
(637)
(96)
(444)

(462)
(637)
(96)
(444)

154
(363)
5
17
$ (1,826)

Note: The fair value is estimated based on forward exchange rates.

Fuji Electric Report Financials 2021

26

2. Derivative transactions to which hedge accounting is applied(1) Currency-related contracts
Millions of yen

2021
Hedge accounting
methodType of derivative

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

Principal items hedged

Contract amountover 1 year

Fair value

634
2,023
38

¥ 215
—
—

¥ (46)
(10)
(3)

157
5,216
2

—
3,710
—

7
516
0

Contract amountAccounts receivable-trade¥

Accounts payable-trade

Accounts receivable-trade
¥
¥

244
88
132
108
833

¥

—
—
—
—
—

(Note2)

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

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
Singapore Dollar
Foreign currency forward contracts:
Receivables:
U.S. Dollar
Euro
Yuan Renminbi
Allocation method
Baht
Payables:U.S. Dollar
Euro
Pound sterling
Total

27

Fuji Electric Report Financials 2021

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Thousands of U.S. dollars (Note 3)

2021
Hedge accounting
methodType of derivative

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

Principal items hedged

Contract amountContract amountover 1 year

Fair value$ 5,765
18,393350$ 1,960——$ (418)
(96)
(31)

1,427
47,38121—
33,722
—

70
4,698
2

Accounts receivable-trade

Accounts payable-trade

Accounts receivable-trade$ 2,226
$ 807
1,207
984
7,575

$

—
—
—
—
—

60
7,575
$ 93,771——$ 35,682(Note2)

Accounts payable-trade$ 4,225

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

2021
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 amount¥ 1,835

Contract amountover 1 year—

Fair value(Note2)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)Thousands of U.S. dollars (Note 3)

2021
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 amount$ 16,684

Contract amountover 1 year—

Fair value(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.

Fuji Electric Report Financials 2021

28

Note 9. Short-term Debt and Long-term Debt
Short-term debt as of March 31, 2021 and 2020 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

Loans, principally from banks
Commercial paper
Short-term debt

2021

2020

2021

¥ 17,601—¥ 17,601¥ 19,271
51,500¥ 70,771$ 160,018—$ 160,018

Note: The weighted average interest rates on short-term debt as of March 31, 2021 and 2020 were 1.26% and 0.45%, respectively.

Long-term debt as of March 31, 2021 and 2020 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

2021

2020

2021

¥ 100,828¥ 40,675$ 916,623—
15,00010,00010,000135,828
4,142¥ 131,686

15,00015,00010,00010,00090,675
17,071¥ 73,604—
136,364
90,90990,9091,234,805
37,657$ 1,197,148

Note: The weighted average interest rates on loans, principally from banks and insurance companies, as of March 31, 2021 and 2020 were 0.26% and 0.40%, respectively.

As of March 31, 2021, 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)

2023
2024
2025
2026
2027 thereafter
Total¥ 30,264
52,79828,524100
20,000¥ 131,686$ 275,119
479,985259,317909
181,818$ 1,197,148

Note 10. Lease Obligations
Lease obligations as of March 31, 2021 and 2020 consisted of the following:Thousands of
U.S. dollars (Note 3)

Millions of yen

2021

2020

2021

¥ 18,376
43,226¥ 61,602¥ 15,668
39,197¥ 54,865$ 167,063
392,964$ 560,027

Years ending March 31,

Millions of yen

Thousands of
U.S. dollars (Note 3)

2023
2024
2025
2026
2027 thereafter
Total¥ 15,487
12,092
8,269
4,937
2,441
¥ 43,226$ 140,800
109,936
75,17544,88522,168$ 392,964

Short-termLong-term
Total

Note: The weighted average interest rates on lease obligations as of March 31, 2021 and 2020 were 2.07% and 1.88%, respectively.

As of March 31, 2021, the aggregate annual maturities of lease obligations were as follows:

29

Fuji Electric Report Financials 2021

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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 176,192
3,115
2,349
2,529
(11,408)
(109)
533
40
¥ 173,241¥ 181,387
3,167
2,409
1,406
(11,524)(681)—
28¥ 176,192$ 1,601,748
28,326
21,35622,998(103,711)
(997)
4,852
355
$ 1,574,926(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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 143,405
2,009
7,226
665
(10,710)562
5¥ 143,162¥ 153,859
2,117(2,819)
1,219(10,965)—(6)¥ 143,405$ 1,303,686
18,266
65,697
6,046(97,367)
5,111
41$ 1,301,480(3) T he changes in defined benefit liability and asset calculated by a simplified method during the years ended March 31, 2021
and 2020 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
Deference arising from the change from simplified method to principle method
OthersDefined benefit liability at the end of the year
Defined benefit asset at the end of the year

2021

2020

2021

¥ 2,140
192
(84)
(86)
22
17
¥ 2,211¥ (10)¥ 1,884
493
(79)
(147)
—
(11)
¥ 2,140—$ 19,461
1,747
(765)
(786)
201
148
$ 20,106$ (100)Fuji Electric Report Financials 202130

(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

2021

2020

2021

Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized in the consolidated balance sheet¥ 171,106(146,055)
25,051
7,228¥ 32,279¥ 175,370(146,953)
28,417
6,510¥ 34,927$ 1,555,511(1,327,771)
227,740
65,711$ 293,451

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

53,322(21,043)¥ 32,279

50,011(15,084)¥ 34,927

484,752(191,301)$ 293,451

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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 3,115
2,349(2,009)
2,418
(833)
192
(6)
92
¥ 5,318¥ 3,167
2,409(2,117)
1,654
(280)
493
—
106
¥ 5,432$ 28,326
21,356(18,266)
21,982(7,573)
1,747
(58)
838
$ 48,352(6) T he components of remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for
the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Prior service cost
Actuarial gain and loss
Total

2021

2020

723
(7,111)¥ (6,388)¥ (400)2,569¥ 2,169

¥

2021

$

6,576
(64,655)$ (58,079)(7) The components of remeasurements of defined benefit plans included in accumulated other comprehensive income (before
tax effect) as of March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

2021

2020

2021

¥ (5,755)
2,975¥ (2,780)¥ (6,479)
10,087¥ 3,608$ (52,324)
27,046$ (25,278)(8) The breakdown of plan assets by major category as of March 31, 2021 and 2020 were as follows:
Debt securities
Deposit
Equity securities
General accounts at life insurance companies
Others
Total

2021

2020

37%
22
19
22
0
100%

40%
24
14
21
1
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, 2021 and 9% of total
amount of plan assets as of March 31, 2020.

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

31

Fuji Electric Report Financials 2021

(9) The assumptions used in accounting for the defined benefit plans as of March 31, 2021 and 2020 were as follows:
Discount rates
Long-term expected rates of return on plan assets
Expected rates of salary increase

2021

2020

0.27% – 1.40%
mainly 2.0%
0.0% – 5.1%

0.27% – 1.40%
mainly 2.0%
0.0% – 8.6%

3. Information on defined contribution pension plans
Contributions of defined contribution pension plans for the years ended March 31, 2021 and 2020 were ¥4,819 million ($43,815 thousand)and ¥4,724 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, 2021 and 2020 were ¥15 million ($137 thousand) and ¥15 million, respectively.

Note 12. Shareholders’ Equity
1. Shares issued and outstanding / Treasury stock
The Companies Act of Japan provides that an amount equal to 10% of the amount to be disbursed as distributions of capital surplus(other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the capital stock account. Such distributions
can be made at any time by resolution of the shareholders or by the Board of Directors if certain conditions are met.
Movements in shares outstanding and treasury stock during the years ended March 31, 2021 and 2020 were as follows:
Thousands of shares

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

March 31, 2020

Increasein the year

Decreasein the year

March 31, 2021

149,296
149,296————

149,296
149,296

6,454
6,454

3
3

0
0

6,457
6,457

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

0
0

6,454
6,454

The increases of treasury stock were due to purchase of shares of less than one voting unit and the decreases of treasury stock were
due to sales of shares at the request of shareholders who own less than one voting unit for the years ended March 31, 2021 and 2020.

2. Dividends(1) Dividends paid
For the year ended March 31, 2021
Resolution

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

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$ 51,942¥ 40.0$ 0.36

5,713

51,94240.0

0.36

Cut-off date

Effective date

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

Fuji Electric Report Financials 2021

32

For the year ended March 31, 2020
Type ofsharesResolution

Total dividends (millions of yen)

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

Dividends per share (yen)¥ 5,713

¥40.0

5,713

40.0

Cut-off date

Effective date

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

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

Meeting of the Board of
Directors on May 27, 2021

Commonstock

Total dividends(millions of yen)

¥6,427

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

Source ofdividends$58,434

Retained
Earnings

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

¥45.0

$0.41

Effective date

March 31,2021

June 9,2021

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

Meeting of the Board of
Directors on May 29, 2020

Total dividends (millions of yen)

Source ofdividends¥5,713Retained
Earnings

Commonstock

Dividends per share (yen)Cut-off date

Effective date

¥40.0

March 31,2020

June 29,2020

Note 13. Research and Development Costs
Research and development costs charged to income were ¥33,562 million ($305,114 thousand) and ¥34,457 million for the years ended
March 31, 2021 and 2020, respectively.
Thousands of
U.S. dollars (Note 3)

Millions of yen

Research and development costs

2021

2020

2021

¥ 33,562¥ 34,457$ 305,114

Note 14. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Salaries and wages
Retirement benefit expenses
Research and development costs

2021

2020

2021

¥ 82,860
4,845
29,452¥ 81,061
4,592
30,366$ 753,276
44,048
267,754

Note 15. Extraordinary Income, Net
Extraordinary income, net, for the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Impairment loss
Costs of corrective measures for product defects
Loss on compensation for damage
Extraordinary income (loss), net

33

Fuji Electric Report Financials 2021

2021

2020

280
40,864

¥ 245
2,525

$

(552)
(1,019)(963)(25,727)—¥ 12,883(1,517)(1,481)——(425)¥ (653)(5,022)(9,258)(8,757)(233,891)—$ 117,122

¥

2021

2,550
371,500

Note 16. Impairment Loss
For the year ended March 31, 2021, the Companies recognized an impairment loss on the following asset groups:
Usage

Business assets production equipment
Business assets - other
Assets to be disposed

Location

ThailandIbaraki Prefecture
Mie Prefecture

Classification

Millions of yen

Thousands of
U.S. dollars (Note 3)

¥ 627
¥ 174
¥ 162

$ 5,701$ 1,587$ 1,469

Machinery and equipment,
Lease equipment and other assets
Buildings and structures, Land
Construction in progress

The Companies determine the asset group by considering thecategories of management accounting.
Regarding the above business assets - production equipment,
the Companies recognized an impairment loss of ¥627 million($5,701 thousand) on the machinery and other assets as an
extraordinary loss up to the recoverable amounts, reviewing futureplans based on the current business environment of consolidated
subsidiaries in the substation business. The impairment loss
consisted of ¥171 million ($1,562 thousand) for machineryand equipment and ¥331 million ($3,018 thousand) for leaseequipment and ¥125 million ($1,121 thousand) for other assets .
The recoverable amount of the assets group was assessed with its
value-in-use discounted at a rate of 12.6%.
Regarding the Business assets-other, the Companies
recognized an impairment loss of ¥174 million ($1,587 thousand)on the buildings and structures and land, which were converting
to warehouse accompanying the reorganization of the production
bases, as an extraordinary loss up to the recoverable amounts.
The impairment loss consisted of ¥72 million ($659 thousand) for
buildings and structures and ¥102 million ($928 thousand)for land.
The recoverable amount of the asset group was assessed with
the net realizable value. Further, as it was difficult to sell, the net
realizable value was assessed at zero.
Regarding the assets to be disposed, the Companies
recognized an impairment loss of ¥162 million ($1,469 thousand)on construction in progress as an extraordinary loss up to therecoverable amounts as they were not expected to be used. The
recoverable amount of the asset group was assessed with the
net realizable value. Further, as it was difficult to sell or convert toother use, the net realizable value was assessed at zero.

Note 17. Income Taxes
1. The components of income taxes for the years ended March 31, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Current
DeferredIncome taxes

2021

2020

2021

¥ 21,423(3,482)¥ 17,941¥ 12,488(499)¥ 11,989$ 194,755(31,647)$ 163,108

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, 2021 and 2020 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)

2021

2020

2021

¥ 19,979
11,893
7,728
6,919
6,814
1,937
12,53767,807(21,409)46,398¥ 22,069
12,021
8,448
6,965
6,443
1,935
7,510
65,391(20,321)45,070$ 181,635
108,123
70,25962,901
61,947
17,613113,953
616,431(194,623)
421,808(25,125)(1,358)(6,911)(33,394)¥ 13,004(20,082)(2,423)(5,981)(28,486)¥ 16,584(228,417)(12,352)(62,820)(303,589)$ 118,219

Fuji Electric Report Financials 2021

34

3. T
 he reconciliation between the statutory income tax rate and the effective income tax rate for the years ended
March 31, 2021 and 2020 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

2021

2020

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

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

Note 18. Consolidated Statements of Comprehensive Income
Amounts reclassified to profit (loss) in the current period that were recognized in other comprehensive income in the current or previous
periods and the tax effects for each component of other comprehensive income were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 57,286(40,843)
16,443(5,043)
11,400¥ 1,049
(58)
991
(383)
608

$ 520,791(371,302)
149,489(45,847)
103,642

798
798
(245)
553

70
70
(21)
49

7,256
7,256
(2,222)
5,034

5,938
5,938
—
5,938

(4,574)(4,574)—(4,574)53,96253,962—53,962

4,803
1,585
6,388
(1,969)4,419(3,542)
1,373(2,169)638(1,531)

43,67014,40958,079(17,899)
40,180

97
(312)

299
103

883
(2,842)(215)¥ 22,095402¥ (5,046)(1,959)$ 200,859

Note 19. Contingent Liabilities
Contingent liabilities as of March 31, 2021 and 2020 were as follows:(1) Guarantees
Thousands of
U.S. dollars (Note 3)

Millions of yen

Guarantees

35

Fuji Electric Report Financials 2021

2021

2020

2021

¥ 6,505¥ 11,127$ 59,145

(2) Product defects
For some of our power semiconductors in specific fields, the company recorded ¥25,727 million ($233,891 thousand) costs ofcorrective measures for product defects as an extraordinary loss. The part of the costs was reasonably estimated based on factors
such as the application by customers of equipment in which the products were incorporated and the usage conditions of such
equipment. However, events occurring which are not considered in the estimation may incur additional costs.

Note 20. 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, 2021 and 2020 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

2021

2020

2021

¥ 133
133
—

¥ 240
232
¥ 8

$ 1,2121,212—(b) Obligations under finance leases:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Due within one year
Due after one year
Total

2021

2020

2021

¥ 10
—
¥ 10

¥ 20
10
¥ 30

$ 93
—
$ 93

(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

2021

2020

2021

¥ 10
8
0

¥ 86
71
2

$ 95
79
4

(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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

Due within one year
Due after one year
Total

2021

2020

2021

¥ 2,444
8,107¥ 10,551¥ 1,604
2,705¥ 4,309$ 22,227
73,699$ 95,926

Fuji Electric Report Financials 2021

36

Note 21. Segment Information
1. Segment information

their 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
Distribution and Power Generation. These segments except forElectronic Devices and Power Generation consist of 2 or morebusiness segments.

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

Main products and services

Power Electronics Systems Energy

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

Power Electronics Systems Industry

Inverters, motors, servo systems, controllers, programmable display, measuring instruments,
sensors, FA systems, drive control systems, measuring and control systems, transport systems,
scrubber systems, radiation monitoring systems, electricity construction, air conditioning
equipment construction, ICT equipment and software

Electronic Devices

Power semiconductors for industrial and vehicles, 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 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, 2021 and 2020 and for the years then ended were as follows:
Millions of yen

Year ended March 31, 2021

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

37

Power
Electronics
Systems
EnergyPower
Electronics
Systems
Industry

Electronic
Devices

Food andBeverageDistribution

Power
Generation

OthersTotal¥ 206,559¥ 332,294¥ 154,033¥ 76,300¥ 80,114¥ 26,627¥ 875,927¥

2,670
209,229¥ 14,018¥ 203,048

13,590345,884¥ 21,781¥ 307,864

3,451
157,484¥ 17,652¥ 215,624

256
76,556¥ (5,280)¥ 82,411

238
80,352¥ 2,517¥ 67,052

26,06852,695¥ 2,215¥ 37,390

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

¥

5,879

¥

6,660

¥ 18,049¥ 2,519¥ 1,263¥863¥ 35,233¥

961 ¥

36,194¥ 10,995¥ 7,380

¥
¥

1,729
7,042

¥
—
¥ 21,507¥—¥ 2,131¥—¥ 1,136

¥
¥

—
499

¥ 12,724¥ 39,695¥¥— ¥1,297 ¥

12,72440,992

Fuji Electric Report Financials 2021

Adjustments

Consolidated— ¥ 875,927

Millions of yen

Year ended March 31, 2020

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¥

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

Adjustments

Consolidated$ 7,962,980$$ 7,962,980

236,994
479,039$ 20,145$ 339,903

420,666
8,383,646$ 480,944$ 8,303,544(420,666)—(420,666) 7,962,980$ (39,165) $ 441,779$ 1,259,665 $ 9,563,209

11,489$7,817$ 320,301

$

8,738

$ 329,039—
10,328

$
$

—
4,508

$ 115,673$ 360,865$$—
11,794$ 115,673$ 372,659

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

5,679

¥

6,059

¥ 15,071

¥

2,399

¥

¥ 10,051¥ 6,865

¥
¥

1,722
7,677

¥
—
¥ 31,739

¥
¥

—
2,633

¥
¥

Year ended March 31, 2021

Power
Electronics
Systems
EnergyPower
Electronics
Systems
Industry

Electronic
Devices

Food andBeverageDistribution

Power
Generation

OthersTotal$ 1,877,817$ 3,020,859$ 1,400,303$ 693,643$ 728,313$ 242,045

24,265
1,902,082$ 127,437$ 1,845,893

123,541
3,144,400$ 198,010$ 2,798,766

31,377
1,431,680$ 160,475$ 1,960,222

2,323
695,966$ (48,007)$ 749,194

2,166
730,479$ 22,884$ 609,566$

53,450$60,552$ 164,086$ 22,907$$$

99,95567,096$$

15,71864,026$—$ 195,526$—$ 19,381$$—

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

2021

2020

2021

¥ (4,314)¥ (4,932)$ (39,226)

6

23

61

¥ (4,308)¥ (4,909)$ (39,165)* Corporate expense mainly consisted of administration cost of the Company.
Thousands of
U.S. dollars (Note 3)

Millions of yen

Corporate assets*

2021

2020

2021

¥ 276,445¥ 266,851$ 2,513,145

Elimination of intersegment transactions
Total(137,882)(147,050)(1,253,480)¥ 138,563¥ 119,801$ 1,259,665* Corporate assets mainly consisted of invested cash surpluses (cash and cash equivalents), long-term invested assets (investment securities), assets relating toadministration department and assets of a financing subsidiary company.
3. Segment profits (losses) were reconciled to operating income (loss) in the consolidated statements of income.

Fuji Electric Report Financials 2021

38

2. Related Information
Related information as of March 31, 2021 and 2020 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

2021

2020

2021

¥ 654,020
108,207
83,874
16,512
13,314¥ 875,927¥ 679,719
124,623
62,64418,961
14,657¥ 900,604$ 5,945,639
983,694
762,495
150,113
121,039$ 7,962,980

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

2021

2020

2021

¥ 168,724
25,44914,327605653¥ 209,758¥ 160,998
26,505
13,214598
577¥ 201,892$ 1,533,863
231,333
130,2515,504
5,942$ 1,906,893

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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 801
162
—
—
—
—
¥ 963

¥—
—
—
—
—
—
¥—

$ 7,288
1,469
—
—
—
—
$ 8,757

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, 2021 and2020 were as follows:
Millions of yen

Year ended March 31, 2021

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Food and BeverageElectronic Devices
Distribution
Power Generation

Amortization
Balance as of March 31

¥—
¥—

¥ 843
¥ 6,294

Year ended March 31, 2020

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Amortization
Balance as of March 31

¥ 292
¥ —

¥ 455
¥ 6,642

Year ended March 31, 2021

Power Electronics
Systems Energy

Power Electronics
Systems Industry

Electronic Devices

Amortization
Balance as of March 31$—$—$ 7,669$ 57,226

$ 89
$ 396

¥ 10
¥ 44

¥—
¥—

¥—
¥—

OthersConsolidated

¥—
¥—

¥ 853
¥ 6,338

OthersConsolidated

¥—
¥—

¥ 758
¥ 6,695

OthersConsolidated$—$—$ 7,758$ 57,622

Millions of yen
Food and BeverageElectronic Devices
Distribution
Power Generation

¥ 11
¥ 53

¥—
¥—

¥—
¥—

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

39

Fuji Electric Report Financials 2021$—$—

Note 22. Information on Transactions with Related Parties
For the year ended March 31, 2021
None
For the year ended March 31, 2020
Transactions with the Company’s consolidated subsidiaries and related parties as follows:
Capital or investments
in capital
Type

Name

Affiliated company

METAWATER Co., Ltd

Location

Chiyoda-ku, Tokyo

Millions of yen

Business description

Holding ratio ofvoting rights(Owned)¥11,946

Plant Engineering

24.4

Amounts
RelationshipTransaction

Millions of yen(Proceed)

Production sales
interlocking directors

Sale of securities of
the affiliated company¥7,484(Gain)¥1,772

Accounts

Ending balance(Millions of yen)

—

—

—

—

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 23. Business Combinations
For the year ended March 31, 2021
None

Note 24. Asset Retirement Obligations
Asset retirement obligations recorded on the consolidated balance sheets
1. Outline of asset retirement obligations
The Companies record asset retirement obligations related to the expenses for removing asbestos from company-owned buildings
upon their dismantlement and the obligations to restore head offices, sales offices and other premises to their original condition upon
termination of their lease contracts.
Regarding some of the obligations to restore head offices, sales offices and other premises to their original condition, the Companies
estimate nonrecoverable amounts of deposits for those premises and record the portion attributable to the current 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 17 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, 2021 and 2020 were as follows:
Thousands of
U.S. dollars (Note 3)

Millions of yen

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

2021

2020

2021

¥ 1,896
6(2)¥ 1,900¥ 1,9186(28)¥ 1,896$ 17,24357(23)$ 17,277

Note 25. Amounts Per ShareInformation of amounts per share as of March 31, 2021 and 2020 and for the years then ended were as follows:Yen

Net assets per share
Net income per share

U.S. dollars (Note 3)

2021

2020

2021

¥ 2,919.34
293.52¥ 2,559.60
201.57$ 26.539
2.668

Diluted net income per share in 2021 and 2020 are not disclosed because there is no potential common stock that has a dilutive effect.

Fuji Electric Report Financials 2021

40

Independent Auditor’s Report

41

Fuji Electric Report Financials 2021

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Fuji Electric Report Financials 2021

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Fuji Electric Report Financials 2021

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Fuji Electric Report Financials 2021

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

00A9-E-0015c Published in Japan 2021.9