Fuji Electric ReportContents
Editorial Policy

Corporate Philosophy /Management Policies /Brand Statement

02

Fuji Electric’s Energy andEnvironment Businesses

03

President s
MessageStart of FY2023 Medium-Term
Management Plan—
Reiwa Prosperity 2023
Pursuit of Sustainable Growth in Energy
and Environment Businesses

05

Review ofOperations

Fiscal 2018 Performance
Fiscal 2019 Management Plan

11

Power Electronics Systems Energy
Power Electronics Systems Industry

13

Electronic Devices

19
21
23

Food and Beverage Distribution
Power Generation

Initiatives for
Accomplishing
the SDGs
Material
Management
Initiatives

Corporate
Information

01 Fuji Electric Report 2019

Fuji Electric Reports are important communication
tools that are prepared and published for the
purpose of facilitating understanding of theCompany’s corporate activities among its shareholders, investors, and various other stakeholders.
In preparing Fuji Electric Report 2019, wesought to foster understanding with regard to
Fuji Electric’s efforts to create value over the
medium-to-long-term. This report thus compiles
information on corporate activities aimed at contributing to the realization of a sustainable society
through energy and environment businesses. The
presentation of this information is framed in the
new medium-term management plan announced
in June 2019 and incorporates the perspective ofcontributions to the accomplishment of the United
Nations Sustainable Development Goals (SDGs).

Information Disclosure Venues

25

Fuji Electric Reports include highlights of financial
information as well as non-financial information
pertaining to social and environmental issues.
More detailed financial information can be foundin the Company’s financial results summaries andsecurities reports (Japanese only) on its investor
relations website. Additional non-financial information is available in the form of detailed explanations of Fuji Electric’s social and environmental
initiatives on the Company’s corporate website.
Investor Relations Website:
https://www.fujielectric.com/ir/
Environmental, Social, and Governance Website:
https://www.fujielectric.com/company/csr/

Material Issues to Reinforcing
Operating Foundations

26

Fuji Electric Code of Conduct

27

People (Employees)

29

Customers

31

Business Partners

31

Shareholders / Investors

32

Environment

33

Corporate Governance

37

Compliance42

Risk Management

44

Social Outreach(Local Communities)

46

Corporate Data

47

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

Corporate Philosophy
Corporate Mission
President’s Message

We, Fuji Electric, pledge as responsible corporate citizens in a global society
to strengthen our trust with communities, customers and partners.
Our mission is to:・Contribute to prosperity
・Encourage creativity

Review of Operations

・Seek harmony with the environment

SloganTo be enthusiastic, ambitious and sensitive.

Initiatives for
Accomplishing the SDGs

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

Material Management
Initiatives

Brand Statement
Corporate Information

Brand Promise
Through our pursuit of innovation in electric and thermal energy technology,
we develop products that maximize energy efficiency and lead toa responsible and sustainable society.

Fuji Electric Report 201902

Fuji Electric’s Energy and Environment Businesses

SDGs tobe Addressed
through Energy
and Environment
Businesses

Value Created

Clean energy

Four Businesses
Five Segments

Power Generation

Stable supply of energy			Power Electronics Systems
EnergyBusiness Fields
Power and new energy

Energymanagement

Power supply
and facility
systems

System solutions that combine components with engineering services, optimal control technologies, and IoT technologies to create value that is beneficial for society

ED&C
components

System

Optimal Control
Technologies

Engineering

Components
Smart meters

Key Devices

Transformers

Uninterruptible
power systems

Molded-casecircuit breakers

World-leading power semiconductors
for regulating electricity
Power semiconductors

03 Fuji Electric Report 2019

Magnetic switches			Fuji Electric is committed to thoroughly exercising synergies between its core power semiconductor and power electronics technologies. By combining high-quality equipment employing key devices with engineering services, optimal control
technologies, and IoT technologies developed through frontline operations, we will make contributions to the creation of
responsible and sustainable societies in industrial and social infrastructure fields.

Automation
Energy saving

Automation Energy saving

Power Electronics Systems
Industry

Factory automation

SocialsolutionsElectronic
Devices

Food and Beverage
Distribution

Semiconductors

Vending
machinesStore
distribution

Solutions

IoT

Services

Inverters

MotorsServo systems

Controllers

Measuring
instruments

Sensors utilizing various applied technologies
that underpin safe operations
Sensors
Internet of Things (IoT): Framework for fundamentally revolutionizing business and our daily lives byconnecting various objects through networks and enabling them to achieve optimal, autonomous
control of one anotherFuji Electric Report 201904

President’s Message
Start of FY2023 Medium-Term
Management Plan—Reiwa Prosperity 2023
Pursuit of Sustainable Growth inEnergy and Environment Businesses

Through Putting our Corporate Philosophy andManagement Policies into Practice, We areContributing to the Creation of Sustainable Societies

Record-Breaking Operating Income Posted for
Second Consecutive Year and All Targets of
FY2018 Medium-Term Management Plan Achieved

Global society is currently engaged in a movement to achieve
economic growth while simultaneously addressing social andenvironmental issues. This movement can be seen in the United
Nations Sustainable Development Goals, a set of international
goals for realizing a sustainable society, and the Paris
Agreement, an international framework for combating global
warming. Companies, too, are expected to take part in proactive efforts toward these goals as responsible members ofsociety. Acting in accordance with Fuji Electric’s corporate
philosophy of “contribute to prosperity,” “encourage creativity,”and “seek harmony with the environment,” the Company bases
its management policies on contributing to the creation ofsustainable societies through its energy and environment businesses. This direction indicated by Fuji Electric’s corporate
philosophy is compatible with enhancing the three areas ofsociety, economy, and environment.
Going forward, we will continue to sincerely put our corporate philosophy and management policies into practice whilefurther refining our energy and environment technology. By
working together with our customers and business partners tosolve social and environmental issues and create customer
value, we will contribute to the creation of responsible andsustainable societies.

In fiscal 2018, the final year of the FY2018 Medium-Term
Management Plan, Renovation 2018, which adopted “further
renovation of Fuji Electric” as its basic policy, we implemented
growth strategies and pursued improved profitability.
In fiscal 2018, net sales increased to ¥914.9 billion andoperating income rose to ¥60.0 billion, as we recorded year-onyear increases in revenue and earnings, and record-highincome for the second consecutive year. These results were
driven by robust demand for investment in equipment in Japan,
despite a trend toward investment restraint in the Chinese
market in the second half of the fiscal year due to the trade
friction between the United States and China. Furthermore, thesuccessful achievement of all the management targets of the
FY2018 Medium-Term Management Plan, including the financial targets, instilled great confidence into employees.

FY2017
Results

FY2018
Medium-Term
Management
Plan (Target)

FY2018Results

Net Sales

893.5

900.0

914.9

Operating Income

56.0

54.0

60.0

Operating Margin

6.3%

6.0%

6.6%

Net Income Attributable to
Owners of Parent

37.8

34.0

40.3

0.4 times

0.7 times

0.4 times

Equity Ratio

36%

32%

37%

ROA

4%

4%

4%

ROE

12%

12%

12%

(Billions of yen)

Resolution of Social andEnvironmental Issues

Creation of Customer Value

Financial Indicators
Net Debt-to-Equity Ratio*

Fuji Electric’s Vision

Contribute to the creation of
responsible and sustainable societies
Energy and environment businesses*Net interest-bearing debt / Shareholders’ equity
Corporate
Philosophy

Contribute toprosperity

05 Fuji Electric Report 2019

Encourage
creativity

Seek harmony with theenvironment

Review of Fiscal 2010 to Fiscal 2018

Looking back on the 10 years since fiscal 2009, we haveworked hard to boost profitability through a number of initiatives. These initiatives include realizing innovation of our business structure in the immediate aftermath of the global
financial crisis, abolishing the holding company system, andrestructuring our organization with the aim of integrating business management. At the same time, we reduced the numberof executive officers from 53 to 18 to create an executive
system that would facilitate the speed of decision making.
From 2013, when we had made good progress toward
strengthening our foundations, we looked to the future bypromoting growth strategies, such as conducting proactive
investments including M&A, as we continued to achieve
increases in revenue and earnings. Moreover, as a result of
improved business performance, we were able to increase
dividend payments to shareholders almost every year andproperly reward employees with bonuses.
Since assuming the office of president of Fuji Electric, I
have consistently emphasized the expansion of our energy
and environment businesses, globalization, and teamwork, in
accordance with our management policies. In addition, I havealso emphasized augmenting our manufacturing capabilities—
our starting point as a manufacturer and the source of ourearnings. With “benchmarks are the way of the old Fuji
Electric” as our motto, we have worked to create a culturethat is conducive to thinking about how we can achieve ourgoals, without being tied to conventional methods or thinking.
We clarified energy and the environment as Fuji Electric’s
business domains by integrating and reorganizing the three business segments of Industrial Infrastructure, Social Infrastructure,and Power Electronics, to establish the power electronics systems business in 2017. We made this change in order to pursue
synergies in related businesses, with a focus on power electronics
technologies, an area of strength for the Company.
With the aim of strengthening cost-competitiveness andminimizing geopolitical risks, we expanded overseas production

Business
Performance Trends

Strengthen a Profitable Structure
through Business Restructuring

Implement Growth
Strategies

Further Renovation of
Fuji Electric(Billions of yen)

691.2

689.1

745.8

703.5

（5.5%）（4.4%）（2.7%）（1.7%）（0.1%）

0.9

6.8

15.1
11.9

19.3

26.4
22.0

28.0

（6.3%）(6.6%)（5.3%）

56.0

39.3
33.1

914.9

893.5

（4.8%）

45.0（2.9%）Net Sales
Operating Income
Net Income
Attributable to Ownersof Parent
Operating Margin

837.8

813.6

810.7

759.9

President’s Message

bases and promoted global procurement in order to expand
our overseas operations. We thoroughly pursued local production and local consumption. We had previously over-emphasized the importance of our production bases in China but weestablished a system in which products to be sold in China aremade in China, and products to be sold in Asia are made in
Asia, thereby promoting the expansion of overseas production
bases and global procurement. In addition, we proactively
conducted M&A activities and collaboration with the aim ofcapturing human resources and sales channels, establishing
the companies as development and engineering bases centered on China and other parts of Asia.
To enable Fuji Electric to unite and maximize its strengths,
I believe that it will be vital to transcend organizational andnational boundaries while enhancing the capabilities of individuals. An example of that is the Companywide Pro-7 Activities
that we started in 2012 with a view to improving profitability.
These activities, in which employees review the way they workfrom the ground up by forming teams and setting tasks andtargets, are designed to improve work quality and efficiency.
The greatest achievement of these activities is their permeation
to all corners of frontline operations, changing the awareness of
employees. The accumulation of these steady efforts has raised
the level of profit improvements.
At the same time, we have made great efforts to augment
our manufacturing capabilities in order to strengthen our factories, which is the source of our profits. In addition to training
engineers and technicians, we have promoted the visualization of
costs for each product and business. By pursuing in-housemanufacturing, automation, and standardization with the goal ofachieving cost reductions and enhancing productivity, we havesuccessfully revamped our production technology capabilities.
We have also recently embarked upon the automation of quality
control documentation, thereby heightening their reliability.
Moreover, as a way to strengthen technological development capabilities, we are bolstering cooperation among developers while increasing speed and efficiency by constructing
development wings at each of the three power electronics
systems and electronic devices global mother factories inJapan, in order to gather together researchers and engineers.

Business Restructuring, Growth Strategies, andFurther Renovation

44.7
41.0

37.8

60.0

40.3

30.6

19.6

11.8

Financial Indicators

2009

2010

2011

2012

2013

Equity Ratio

20%

19%

ROE

4%

9%

21%

25%

7%

15%

Dividends per Share

7.5

20

20

25

2018

2014

2015

2016

2017

28%

32%

27%

33%

36%

37%

9%

11%

12%

16%

12%

12%

35

45

50

55

70

80

(FY)

(Yen)

Note: Dividends were calculated making reference to the share consolidation of October 1, 2018.

Fuji Electric Report 201906

FY2023 Medium-Term Management Plan “Reiwa Prosperity 2023”
Establishing Foundations for Sustainable GrowthIn fiscal 2019, the start of the Reiwa era in Japan, we launched
a new five-year Medium-Term Management Plan. The plan has
fiscal 2023 as its final year—the 100th anniversary of Fuji
Electric’s founding. “Reiwa Prosperity 2023” articulates our aim
to prosper with society by 2023 through our energy and environment businesses.
The five years toward fiscal 2023 are a time for strengthening our foundations as a company that realizes ongoing growth.
With a focus on implementing growth strategies and further
improving profitability, we will also enhance management quality
from a long-term perspective by addressing the managementbase that supports our operations on a global scale, regarding
such matters as the environment, human resources, and corporate governance.

Target Net Sales of ¥1 Trillion and Operating
Margin of 8.0% or more for Fiscal 2023
Among the management targets for fiscal 2023, net sales of ¥1
trillion and an operating margin of 8.0% or more are the oneson which we place the most importance. In regard to financial
indicators, we have adopted targets that emphasize balancing
growth potential, profitability, and efficiency with financial
soundness. Those targets have a net debt-to-equity ratio of 0.1
times, an equity ratio of 50.0%, and ROE of 11.0%. In terms ofcapital efficiency, we will achieve qualitative improvement of
ROE by enhancing profits and reducing working capital. We
have positioned the next five years as a stage for conducting
proactive investments in pursuit of business expansion.
Nevertheless, we aim to achieve a dividend payout ratio of 30%
as soon as possible for shareholder returns while maintaining
sufficient funds for growth investments such as capital investment, research and development, and human resource investment. Furthermore, we recognize that it is debatable whether
an equity ratio of 50% is an appropriate level and we will continue to consider that and other points, including utilization of
growth investments and our policy on cross-shareholdings, as
we pursue further enhancement of capital efficiency.

FY2023 Management Targets
FY2018Results

FY2023Medium-Term
Management
Plan (Target)

FY2018–FY2023
ChangeNet Sales

914.9

1,000.0+85.1

Operating Income

60.0

80.0

+20.0

Operating Margin

6.6%

8.0%

+1.4ptNet Income Attributableto Owners of Parent

40.3

55.0

+14.7

(Billions of yen)

0.4 times

Equity Ratio

37%

ROA

4%

ROE

12%

Payout Ratio

28%

0.1 times
50%

Promote Growth Strategies

Further Improve Profitability• Concentrate resources on
growth fields (power electronics
systems and power
semiconductors)• Expand overseas businesses• Augment global
manufacturing capabilities

Ongoing Reinforcement of Operating Foundations
Environment

5%
11%
30%

+1pt
–1pt
+2pt

Human Resources

Governance

Evolution of Companywide Pro-7 Activities

Growth Centered on Power Electronics Systems andElectronic Devices and Emphasis on Profits in Power
Generation and Food and Beverage Distribution
As the need for improved energy efficiency and energy conservation in the industrial world increases toward the pursuit of therealization of a low-carbon society, we are seeing an expansion
in business opportunities that allow Fuji Electric to leverage its
strengths in power electronics technology and power semiconductor technology. Responding proactively to this favorable
market situation, we will target expanding sales from PowerElectronics Systems and Electronic Devices so that theyaccount for about 80% of total consolidated sales and profits.
A major strength of Fuji Electric’s power electronics systems
business is that it is a one-stop shop for addressing various
issues faced by customers. As the leading manufacturer of
power semiconductors, we have an advantage over others. We
develop competitive component products equipped with power
semiconductors that address a variety of issues, from energy
stabilization and optimization to factory energy conservation
and automation through systems with added engineering,
service, and IoT technologies. With the strength of our powerelectronics systems business, we will leverage the expertise wehave cultivated in Japan to expand operations centered onenergy management, power supply and facility systems, andautomation systems.
Net Sales

Operating Income(Billions of yen)

(Billions of yen)

914.9

1,000.0

80.0

60.0
80.0

62.2
107.0

60.0

120.0

113.6

2.8
4.8
5.8

200.0

137.3

3.0
5.6
8.5

OthersPower Generation
Food and Beverage
Distribution

22.0

Electronic Devices

48.0

Power Electronics
Systems

Elimination andCorporation
(FY)

15.6

80%

75%

79%

546.6

600.0

–51.9

–60.0

–5.2

–7.0

2018
Results

2023
Medium-Term
Management
Plan(Target)2018
Results

2023
Medium-Term
Management
Plan(Target)

– 0.3
+13pt

Note: Assumed exchange rates for fiscal 2023: ¥105 to the U.S. dollar; ¥123 to the Euro; ¥16 to
the RMB

07 Fuji Electric Report 2019

Establish Foundations for Sustainable Growth71%

Financial Indicators
Net Debt-to-Equity Ratio

FY2023 Medium-Term Management Plan Key Issues

36.2

Note: Ratios for Power Electronics Systems and Electronic Devices are calculated based onamounts before elimination and adjustment of inter-segment transactions

Concentrating Management Resources on PowerElectronics Systems and Power Semiconductors
In order to reinforce strong businesses and expand operations,
we will concentrate management resources on power electronics systems and power semiconductors, allocating 90% of
plant and equipment investment and 80% of research anddevelopment (R&D) expenditures to the two businesses.
Although the amount of plant and equipment investment
in power semiconductors of ¥120.0 billion accounts for about
half of total plant and equipment investment, in regard to theautomotive field in particular, we will steadily increase investment to strengthen production capacity while carefully
assessing market trends and controlling risk. As for R&D, wewill focus on developing new products aimed at increasing
sales in the automotive field as well as continuing to focus
efforts on the development of next-generation SiC power
semiconductor modules in pursuit of future sales expansion.
We have made progress in power electronics systems
with respect to the development of global products as well as
the standardization and bundling of systems. In addition, ourpartnership strategy in China and the rest of Asia has become
clear as a result of collaborations and M&A activities, and wewill expand the systems business overseas on a full-scalebasis over the next five years. At Fuji Electric Manufacturing(Thailand) Co., Ltd., which will serve as a core production sitein Asia, we have established switchgear and controlgear

system factories. By coordinating manufacturing, engineering,and services with sales bases in Asian countries, we willachieve business expansion. Moreover, as new products andnew businesses result from Fuji Electric’s proprietary technology, we will focus efforts on expanding sales of SiC-equipped
power electronics products for railroad applications and systems for ships.

Expanding Sales Outside Japan and Augmenting
Manufacturing Capabilities GloballyWith a focus on Southeast Asia, India, and China as key
regions with high growth potential due to energy conservation
and automation investments in industrial and social infrastructure and the proliferation of electric vehicles (EVs), we will
increase the ratio of sales outside Japan to total net sales from
25% to 35%.
We will increase sales in Asia, the region with the biggest
sales volume, centered on power electronics systems.
Meanwhile, power semiconductors for EVs will be the driver ofgrowth in China and Europe.
In parallel with expanding operations overseas, we will
redouble efforts to promote local production and local consumption while augmenting global manufacturing capabilities
in order to increase profits. By transferring the production
technology capabilities cultivated at regional mother factories
in Thailand and China to related factories overseas, we will
promote their autonomy. Human resource development will bevital to these initiatives. At Fuji Electric Manufacturing(Thailand) Co., Ltd., which we have positioned as an Asian
regional mother factory, local staff played a central role inproviding guidance to factories in India and France in startinga low-voltage inverter production line. In such ways, the coordination among overseas bases is growing. We will step up
the cultivation of local leaders to further accelerate the autonomy of overseas production bases.
Moreover, in addition to the in-house manufacturing, automation, and standardization that we have pursued to date, wewill also promote manufacturing innovations that leverage IoTtechnologies in order to augment manufacturing capabilities
globally. We will build a platform with information on designs,
purchasing, production, and testing from every overseas production base to facilitate the advancement of coordination
through the visualization and sharing of information, and linkthat to shortening lead times, reducing the amount of work inprogress, and improving cash flow.

Plant and Equipment Investment

R&D Expenditures

Overseas Sales(Billions of yen)

(Billions of yen)

(Billions of yen)

220.0
2.0

15.0

5.0

153.6
13.2
15.0
65.8

200.0

SharedPower Generation
Food and Beverage
Distribution

175.2
13.6
9.4

6.0

120.0

62.4

90%

53.7
2014–2018
Cumulative
Results

78.0

2019–2023
Cumulative(Target)Power Electronics
Systems
(FY)SharedPower Generation
Food and Beverage
Distribution

74.0

Electronic Devices(power semiconductors)

Ratio of
Overseas Sales

25%

35%

350.0
27.0
30.0

Americas
Europe

135.0

China

158.0

Asia and others

232.4
15.8
16.5
78.4

80%

80%

78%

15.0
11.0
15.0

12.5

Electronic Devices(power semiconductors)

President’s Message

Recognizing the proliferation of electrified vehicles (xEVs) andthe spread of renewable energy as growth opportunities, we willgrow the Electronic Devices segment through our power semiconductors, for which Fuji Electric possesses world-leading
technologies.
Meanwhile, we will seek profitability for the Power Generation
and Food and Beverage Distribution segments by promoting
business portfolio reform through business selection and concentration, rather than pursuing sales expansion. In Power
Generation, where the global movement to phase out coal-fired
thermal power is picking up speed, we will shift to the field of
renewable energies and distributed power supply such as geothermal power generation, in which we have a leading market
share around the world, while bolstering after-sales businesses.
In Food and Beverage Distribution, we will expand both our
vending machine business in China and Southeast Asia and oursystems business that facilitates the efficiency of vending
machine operations and labor and power-saving at stores.

77.2

85.0

2014–2018
Cumulative
Results

2019–2023
Cumulative(Target)Power Electronics
Systems

(FY)

121.7

2018
Results

2023
Medium-Term
Management
Plan(Target)(FY)

Note: Figures for R&D expenditures are allocated by research theme and therefore differ fromthose in the consolidated financial report

Fuji Electric Report 201908

Ongoing Reinforcement of Operating Foundations
Fuji Electric is reinforcing its operating foundations toward theenhancement of corporate value over the long term, including
initiatives for environmental preservation, human resource development, and corporate governance. Moreover, the Company
revised its Code of Conduct, which sets forth guidelines for the
conduct of employees, to incorporate the concepts of the United
Nations Global Compact and Sustainable Development Goals. I
believe that awareness among employees, including Group
employees overseas, is an important issue.

Strengthening Human Resources
Amid a falling birthrate and an aging society in Japan, Fuji
Electric is faced with management issues such as the aging of
its labor force, globalization, and changes in its business structure. Against this backdrop, it is becoming increasingly important to strengthen human resources, which are the source of acompany’s competitiveness. In this environment, the handing
down of skills from generation to generation has been a perennial issue. About 100 employees aged 65 or over are currently
engaged in the instruction and development of young employees and it is necessary to treat highly skilled employees appropriately. In addition, we will develop a system to ensure that
employees aged 60 or over with excellent track records, notjust engineers, receive treatment that is matched to the value of
their work.
In regard to female empowerment, we will continue toproactively hire female employees while pursuing planned
career development and cultivation in order to increase thenumber of female employees in supervisory positions.
Today, the issue warranting the most attention is the line
management of middle managers, who are the core of every
team. This issue was brought to the fore in the employee
awareness surveys that we continuously conduct. We will stepup our efforts to an even greater extent than before to cultivate
middle managers while improving their amount of experiencethrough planned rotation, thereby developing the humanresources who will lead the Fuji Electric of tomorrow.

Enhancing the Transparency of Management
Thorough Reinforcement of Global ComplianceFuji Electric established a voluntary Nomination andRemuneration Committee composed of a majority of Outside
Directors and with an Outside Director as its chairman. The
committee began its activities in July 2019. Although we havelong been appointing Outside Officers to strengthen the management supervisory function and auditing function, we willfurther enhance management transparency through theNomination and Remuneration Committee going forward.
Moreover, as a result of the expansion of overseas businesses, we will conduct thorough compliance reinforcement
at overseas subsidiaries while, in terms of risk management,
we will strengthen business continuity capabilities and information security countermeasures.

Contributing to the Environment through Our
Business Activities
In June 2019, we created the Environmental Vision 2050, whichaims to make contributions to the supply chain for the realization of a low-carbon society, recycling-oriented society, andsociety in harmony with nature. As specific targets for achieving
a low-carbon society, we have adopted quantitative targets forfiscal 2030, such as reducing greenhouse gas emissions during
production by 31% and reducing CO2 emissions by 50 million
tons annually through our products.
Fuji Electric’s strength is that it is able to contribute to society through its energy and environment businesses. Goingforward, we will contribute to efforts to combat global warming
together with our customers and business partners.

Fuji Electric Environmental Vision 2050
We aim to achieve a “Low-Carbon Society,”“Recycling-Oriented Society,” and “Society in Harmony with
Nature” by expanding use of Fuji Electric’s innovative clean
energy technology and energy-saving products.

Realize a Low-Carbon Society
Target a reduction of 80% or more in greenhouse gas emissions
across the supply chain

Realize a RecyclingOriented Society
Promote green supply chainsand 3R* activities to reduce
environmental impact to zero*Reduce, Reuse, Recycle

09 Fuji Electric Report 2019

Realize a Society inHarmony with Nature
Aim for zero influence on theecosystem by corporate
activities contributing tobiodiversity

Toward Sustainable Growth
Realizing “Enthusiastic, Ambitious andSensitive” Employees

When we launched the Companywide Pro-7 Activities, ourgoal was to contribute directly to profits by lowering costs andimproving profit margins. However, the goal is now work itself.
We practice self-monitoring and review every aspect of ourwork from the ground up and promote the Activities throughthe three pillars of enhancing work efficiency and quality, andworkstyle reforms designed to improve productivity. Ultimately,
what we are targeting through Pro-7 Activities is prosperity as
a company, returns to shareholders, and the happiness of
employees. We will pursue prosperity for the customers who
support and trust us, the shareholders who back us, and our
employees and their families.

President’s Message

Develop Pro-7 Activities and Pursue Prosperity

Since I believe that it is important to contribute to society
through work and take ownership of one’s own growth, I
directly convey the slogan adopted in our corporate philosophy—“to be enthusiastic, ambitious and sensitive”—toemployees at production and sales bases in Japan and overseas. In this slogan, “enthusiasm” means the desire to contribute to society by creating new technologies and products.
“Ambition” means setting lofty goals and working to achieve
them with a strong spirit, no matter what challenges may be
faced. “Sensitive” means valuing customers, allies, and thefamilies that support us. This sensitivity truly represents Fuji
Electric’s corporate DNA. By having all employees sharing thevalues of our management slogan engage in Pro-7 Activities, I
firmly believe that the Company’s management base will work
as a team and grow even stronger.
Fuji Electric will continue to put its management slogan into
practice, utilize the comprehensive strength of teams of diverse,
individual employees, and contribute to the creation of sustainable societies through our energy and environment businesses.
In closing, we would like to ask for the continued support of all
our stakeholders.
July 2019

Michihiro Kitazawa
President and Chairman of the Board of Directors

Establishment of Foundation for Sustainable Growth throughCompanywide Pro-7 Activities
Fuji Electric’s
prosperity
Employeehappiness

Shareholder
returns

Prosperity
Enhancementof work quality

Pro-7
Improvement ofwork efficiency

Workstylereforms

Fuji Electric Report 201910

Review of Operations

Fiscal 2018 Performance
Seeking to complete the FY2018 Medium-Term Management
Plan, Fuji Electric strengthened the power electronics systems
business and aggressively invested in the expansion of its power
semiconductor operations while also pursuing increased profitability by further enhancing manufacturing capabilities and reenergizing the Companywide Pro-7 Activities that are aimed at
improving work quality.
Consolidated net sales in fiscal 2018 increased ¥21.5 billion
year on year, to ¥914.9 billion, due to higher demand centeredon the Power Electronics Systems—Energy Solutions segment,
the Electronic Devices segment, and the Power and New
Energy segment. Despite the impacts of slowdown in demand
seen in the second half of the fiscal year as well as increased
costs associated with a large-scale project in the Power and
New Energy segment, operating income rose ¥4.0 billion year
on year, to ¥60.0 billion.
As a result, we achieved the targets of the FY2018 MediumTerm Management Plan for net sales, operating income, and net
income attributable to owners of parent as well as for all relevant
financial indicators.

Net Sales

FY2017
Results

FY2018Results

ChangeFY2018
Medium-Term
Management
Plan (Target)

Net Sales

893.5

914.9

+21.5

900.0

Operating Income

56.0

60.0

+4.0

54.0

Operating Margin

6.3%

6.6%

+0.3pt6.0%

Net Income Attributableto Owners of Parent

37.8

40.3

+2.5

34.0

0.4 times—

0.7 times

37%
4%
12%

+1pt

32%

(Billions of yen)

Financial Indicators
Net Debt-to-Equity Ratio* 0.4 times
Equity Ratio

36%

ROA

4%

ROE

12%

—

4%

—

12%

*Net interest-bearing debt / Shareholders’ equity

Operating Income(Billions of yen)

(Billions of yen)

893.5

914.9

(Change)

56.0(Change)

OthersPower and New Energy
Food and Beverage Distribution

–0.8
–0.5

15.6

Electronic Devices

+1.9

19.4

Power Electronics Systems—
Industry Solutions

+0.5

16.9

Power Electronics Systems—
Energy Solutions

+2.8

–5.3

–5.2

Elimination and Corporation

2017
Results

2018
Results

62.2
107.0

OthersPower and New Energy

117.8

113.6

Food and Beverage Distribution

+10.1
–4.1

2.9
5.5
6.2

126.9

137.3

Electronic Devices

+10.5

13.7

321.0

321.9

Power Electronics Systems—
Industry Solutions

+1.0

18.9

217.6

224.8

Power Electronics Systems—
Energy Solutions

+7.2

14.0

–47.1

–52.0

Elimination

2017
Results

2018
Results

(FY)

60.0
2.8
4.8
5.8

60.4
96.9

(FY)

Major Initiatives by Segment
Segment

Major Initiatives

Power Electronics Systems—
Energy Solutions• Expanded comprehensive electrical equipment supply operations (semiconductor factories, data centers,
oil depots, etc.)• Aggressively capitalized on substation replacement demand• Commercialized new storage battery systems using reused electric vehicle storage batteries

Power Electronics Systems—
Industry Solutions• Developed ship exhaust gas cleaning systems and delivered first unit
• Established joint venture company with Dalian Bingshan Group Co., Ltd., to strengthen system operationsin China• Commenced production of low-voltage inverters in India and France• Developed and launched OnePackEdge package bundling everything from production floor data collection
to analysis• Developed inverters for railcars

Electronic Devices• Invested in power semiconductor production capacity increases• Advanced development of 4th-generation direct liquid-cooling automotive modules

Food and Beverage
Distribution• Expanded lineup of vending machines (IoT-powered, beverage, food and other items) for the Chinese
market• Commenced production of vending machines for the Southeast Asia market (P.T. Fuji Metec Semarang)• Developed and deployed store fixtures and equipment for addressing labor shortages

Power and New Energy• Commenced on-site construction in Kenya for first geothermal power generation plant order received in
Africa• Received several scrap and build* orders pertaining to hydro power generation systems* Projects in which aged, inefficient facilities are decommissioned and replaced with new facilities to improve efficiency

11 Fuji Electric Report 2019

Fiscal 2019 Management Plan

Net Sales
概況(Billions of yen)

FY2019Management Plan
(Target)ChangeNet Sales

914.9

930.0

+15.1

Operating Income

60.0

62.0

+2.0

Operating Margin

6.6%

6.7%

+0.1ptNet Income Attributable to
Owners of Parent

40.3

40.4

+0.1

0.4 times

0.4 times

—

37%

40%
4%
11%

+3pt

Financial Indicators
Net Debt-to-Equity Ratio
Equity Ratio
ROA

4%

ROE

12%

930.0

Note: A ssumed exchange rates for fiscal 2019: ¥105 to the U.S. dollar; ¥123 to the Euro; ¥16 to
the RMB(Change)

60.0

113.6

113.6

OthersPower Generation
Food and Beverage Distribution

+9.0
0.0

2.8
4.8
5.8

137.3

150.3

Electronic Devices

+12.9

15.6

322.5

332.0

Power Electronics Systems
Industry

+9.5

19.4

224.1

220.0

Power Electronics Systems
Energy

–51.9

–61.9

Elimination

62.2
107.0

60.0
116.0

—
–1pt

Operating Income
2019 年度経営計画営業利益(Billions of 概況yen)

2019 年度経営計画

914.9(Billions of yen)

FY2018Results

Review of Operations

In fiscal 2019, the first year of the FY2023 Medium-Term
Management Plan, Fuji Electric will strengthen the power electronics systems business, aggressively invest in and expand its
power semiconductor operations, and pursue improvements inoperational efficiency and work quality through Pro-7 Activities.
We will target net sales of ¥930.0 billion in fiscal 2019, a
year-on-year increase of ¥15.1 billion, while working toward a
record-breaking ¥62.0 billion in operating income, an increaseof ¥2.0 billion. Companywide performance is expected to be
driven by higher sales volumes of inverters, other components,and ship exhaust gas cleaning systems in the PowerElectronics Systems Industry segment and of automotive andother power semiconductors in the Electronic Devices segment. During fiscal 2019, capital expenditures and R&D activities will be primarily aimed at the Power Electronics Systems
segment and the Electronic Devices segment (namely power
semiconductors), both areas where we anticipate growth.

62.0

16.8

–4.1

–5.2

OthersPower Generation
Food and Beverage Distribution

–0.5
+0.8

17.5

Electronic Devices

+1.9

21.9

Power Electronics Systems
Industry

+2.5

16.8

Power Electronics Systems
Energy0.0

Elimination and Corporation

–7.4

2018
Results(Change)

2.2
4.3
6.6

(FY)
(FY)
2019
2018
2019
Management Plan
Results
Management Plan
(Target)(Target)Note: The Power Electronics Systems—Energy Solutions and Power Electronics Systems—Industry Solutions segments have been reorganized to form the Power Electronics Systems
Energy and Power Electronics Systems Industry segments from fiscal 2019. In addition, the Power and New Energy segment has been renamed the Power Generation segment.
Figures for fiscal 2018 have been restated to reflect these changes.

Plant and Equipment Investment
概況 設備投資(Billions of yen)

53.7 0.6

2.3

0.0
+0.3

34.1

Electronic Devices

+6.0

6.1

Power Electronics Systems
Industry

+1.8

1.1

33.7
3.2
1.6
2.6

1.1

6.5

9.1

2018
Results

2019
Management Plan
(Target)Power Electronics Systems
EnergySegment

9.2

+2.6

3.9

(FY)

2018
Results

+3.5

37.2
3.0
1.8
3.0

SharedPower Generation
Food and Beverage Distribution

+0.2
+0.4

13.7

Electronic Devices

+0.5

9.7

Power Electronics Systems
Industry

+0.5

6.0

Power Electronics Systems
Energy

+2.1

13.2

28.1

4.3

Change(Billions of yen)

+10.4
SharedPower Generation
Food and Beverage Distribution

2.6

43.3 1.0

R&D Expenditures
概況 研究開発

Change2019
Management Plan
(Target)Note: Figures for R&D expenditures above have been divided by segment based ontheme and may therefore differ from the figures contained in the consolidated
financial report for the fiscal year ended March 31, 2019.

Major Plant and Equipment Investment(FY)

Major R&D Expenditures

Power Electronics Systems Energy

Construction of switchgear and controlgear
system factories (Thailand)

Global products (transformers, switchgears, etc.)

Power Electronics Systems Industry

Ship exhaust gas cleaning systems, etc.

SiC-equipped power electronics devices, factory automation
systems, servo systems, etc.

Electronic Devices

Increased power semiconductor production
capacity

IGBTs for electric vehicles, 7th-generation IGBTs (large-capacity
series), etc.

Food and Beverage Distribution—

Vending machines for Chinese and Asian markets, energy-saving
and labor-saving store distribution products

Power Generation—

Service technologies and products
Fuji Electric Report 201912

Power Electronics Systems Energy / Industry

Priority Measures for Fiscal 2019

Value
CreatedSocial Infrastructure Field (Power / Telecommunications)

Creation of Competitive Components
Fuji Electric will accelerate the development of transformers, switchgears and controlgears, and others to createcompetitive global products.
Another focus of development is differentiated products
equipped with next-generation SiC power semiconductorsthat contribute to the realization of more efficient and compact equipment. In this area, we are moving ahead with thedevelopment of traction converters for railcars.

Customers

Segment

Principal Systems

Expansion of Overseas Businesses by
Leveraging Systems
Fuji Electric is stepping up development of high-value-added
systems that combine standardized product and systembundles with engineering services and IoT technologies.
Acting in accordance with our basic principle of local
production and consumption, we will ramp up local
design in China and other parts of Asia, move ahead withthe construction of switchgear and controlgear system
factories at Fuji Electric Manufacturing (Thailand) Co.,
Ltd., and establish engineering centers. At the sametime, we will look to expand overseas operations throughpartner strategies with affiliates and with companies
acquired through M&A activities.

Stable Supply and Optimization of Energy

Power Electronics Systems Energy
Substation Equipment /Monitoring and Control Systems

Energy Management
Systems

Electricity Storage Control Systems

Comprehensive Data
Center Systems

Power conditioning systems

Power stabilizers

Modular data centers

China
We will pursue collaboration with Shanghai Electric Group
Co., Ltd., to promote sales of control systems that support
stable operation at material factories. At the same time, wewill work together with Dalian Bingshan Group Co., Ltd., toexpand sales of energy management systems for contributing to energy saving and optimization at beverage factories.

Transmission and distribution systems and comprehensive electrical equipment supply operations will be fortified through launches of new products while the sales
channels of Fuji CAC Joint Stock Company are used to
expand sales of control systems for cement factories.

India
In addition to leveraging the sales channels of Fuji Gemco
Private Limited to grow sales of steel plant control systems,
we will also seek to expand our power supply operations
through the newly acquired Consul Neowatt Power Solutions
Pvt Ltd. This company’s technologies, manufacturing capabilities, and sales channels will be used to bolster local production and consumption systems in India in order to growour operations in this market.

13 Fuji Electric Report 2019

Major Components

Southeast Asia

Transmission and Distribution /Power Supplies
Transformers Uninterruptible powersystems (UPSs)

The Power Electronics Systems Energy segment, which contributes to the stable supply and optimization of energy, and thePower Electronics Systems Energy segment, which realizes automation and energy saving at factories, operate their businesses under shared policies as Fuji Electric’s power electronics systems business. Based on these shared policies, we seek
to create competitive components through synergies with our core power semiconductor and power electronics technologies;
reinforce systems operations by combining engineering services, optimal control technologies, and IoT technologies; andexpand overseas operations.

Automation and Energy Saving
Industrial Field (Assembly Processing / Materials)

Transportation Field
Review of Operations

Power Electronics Systems Industry
Drive Control / Monitoring Control Systems
for Material Plants

Systems for Railcars
Passenger door systems

Drive systems forhigh-speed railcars

Electric Facility
Construction

Switchgears andControlgears

Operational Information Collection Systems
for Assembly and Processing Equipment

Ship Exhaust Gas Cleaning Systems
SOx scrubbers

Laser type gas analyzers

Inverters

Information Network
Systems

Control Equipment
Controllers

Programmable displays

ED&C Components
Magnetic
switches

Molded-casecircuit breakers

Drive Equipment
Inverters

MotorsMeasuring Instruments
Servo systems

Ultrasonicflowmeters

Gas analyzers

Fuji Electric Report 201914

Expand overseas businesses by leveraging
proposal bundles for electrical equipment

Power Electronics
Systems Energy

Executive Officer
Corporate General Manager,
Power Electronics Systems Energy Business Group

Masahiro Morimoto

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

224.1

220.0

Change

–4.1

7.5%
16.8

7.6%
16.8

Priority Measures for Fiscal 2019
OperatingMarginChange0.0

We will expand our transmission and distribution systems business and comprehensive electrical equipment business overseas through Asian manufacturing and engineering andcapabilities in proposal bundles cultivated in Japan.

Strengthen systems for Asian manufacturing andengineering
2018
Results

2019
Management
Plan(Target)

(FY)

2018
Results

2019
Management
Plan(Target)(FY)

Awareness of Market Needs
We are seeing continuing renewal investments in the manufacturing industry in Japan due to aged equipment such as substation equipment acquired in the 1970s and 1980s, while ashortage of equipment management engineers among customers is stimulating requirements for equipment orders and efficiency of management. Moreover, with a view to improving
energy saving throughout factories and reducing CO2 emissions
from the perspective of growing environmental awareness andrestricting energy costs, demand is increasing not only for the
introduction of products with a high level of power conversion
efficiency, but also for the visualization and optimization ofenergy throughout factories leveraging energy management
systems (EMS).
In the Southeast Asia and Middle East regions, which areexperiencing remarkable economic growth, demand for substation equipment and switchgear and controlgear for factories
and buildings to stabilize power supplies is increasing amid
growing investment in industrial and social infrastructure anddemand for electricity.

Strengths of the Power Electronics
Systems Energy Segment
The strength of the Power Electronics Systems Energy segment lies in its wide range of products and systems, from
instruments that prepare electricity such as transformers andswitchboards to instruments that protect equipment from lightning and instantaneous voltage drops, such as uninterruptible
power systems and EMS. Moreover, in addition to the expertiseon energy saving at Fuji Electric’s factories, we possess anextensive delivery track record and engineering experience. At
the same time, we are experts in the operation of various factories and facilities, and are able to provide maintenance services
that suit user conditions, including the products and systems
that underpin power stabilization and optimization in line withcustomer specifications. In these ways, the ability to offer comprehensive proposal bundles, from a diverse array of products
and systems up to and including maintenance services, is thissegment’s strength.

15 Fuji Electric Report 2019

We will construct switchgear and controlgear system factories
at Fuji Electric Manufacturing (Thailand) Co., Ltd. (FMT), andbuild a new engineering center in order to consolidate engineering staff, who had previously been dispersed. Through coordination between the engineering center and the technologicalsales force at sales companies in Thailand, Indonesia, Vietnam,
the Philippines, and Singapore, we will expand sales proposals
that are custom-tailored to the needs of customers.

Expand the transmission and distribution business by introducing new global products

We will introduce new, price-competitive transformers andswitchgear products. In Southeast Asia we will expand ourbusiness targeting the electricity and materials fields that combines substation equipment with switchgear and controlgear.
Meanwhile, in the Middle East, we will concentrate our efforts
on capturing demand for renewals and services among existing
substation equipment customers by bolstering sales proposals
for equipment malfunction prevention, and lifespan diagnosis
services via coordination with local service companies.

Expand the comprehensive electrical equipment
business for factories and facilities

Since fiscal 2018 we have strengthened our systems and are
growing comprehensive electrical equipment orders for data
centers and semiconductor factories centered on Japan. Goingforward, we will continue to expand the comprehensive electrical equipment business in Japan and Southeast Asia where weanticipate robust capital expenditure in those industries. The
key to strengthening competitiveness is short delivery times
and low costs. In order to realize this, we will further promote
the standardization of our core products, namely switchgear
and controlgear. At the same time, we will begin local production in order to improve our lineup of products that conform tooverseas standards.

Expand sales of ED&C components business targeting the power distribution market
We will expand sales on the back of Tokyo 2020 Olympic andParalympic Games-related investment by strengthening nomination activities in the power distribution market for buildings
and general contractors.

Close-Up

Contributing to the stable supply and optimization of electricity through the comprehensive electrical equipment business for factories and facilities
Fuji Electric contributes to the stable supply and optimization of electricity by performing everything up to and including
design, installation work, and maintenance services for electrical equipment at factories and facilities.
Comprehensive Factory and Facility Electrical Equipment Business Model
Key to success incomprehensive
electrical equipment

System Design, Installation Work, and Maintenance Services

Prepareelectricity

Protect
equipment

Initiatives toward
standardization of switchgear and controlgear

Conserve
energyGIS*

EMS

Switchboards

UPS

Indirect external
air-conditioning units

Customerfactories andfacilities

Review of Operations

Transformers

Stable supply
and optimizationof electricity

At our Kobe factory, themother factory of ourswitchgear and controlgear
business, we have improved
the external form, capacity,
structure, and circuit designof more than 10,000 highvoltage switchgear andcontrolgear over the past ten
years, resulting in standardizing specifications. These
efforts are contributing to
reductions in standard leadtimes and enhanced costcompetitiveness.

Monitoring andcontrol system*Gas-insulated switchgears

Case Study 1

Data Center of a
Foreign Company(Japan)Case Study 2

Oil Tank Factory(Japan)Realizing early facility construction andenergy saving through a wealth of expertiseand products
Amid progress in the shift to cloud-based information systems and in anticipation of the expansion of the information and communication
technology (ICT) market, foreign data center
businesses are increasingly establishing a presence in Japan. Although foreign customers
expect shortened construction periods, a shortage of their own engineers at their Japanesebases and lack of progress in procuring materials became an issue.
Fuji Electric shortened the construction period

by comprehensively undertaking everything fromdesign of the entire facility up to its construction,
combining power distribution equipment, UPSs,
emergency power generation equipment, andother equipment to enable a stable power
supply. Furthermore, on the operational front, we
supported energy saving by providing monitoring
and control systems that facilitate the visualization of energy, air-conditioning equipment thatutilizes outside air, and UPSs with industryleading levels of efficiency. We have gained
recognition for our track record in Japan and weare now seeing an increase in inquiries overseas,
principally in Southeast Asia.

Realizing energy saving and reliable operations through factory diagnosis and maintenance services
A lack of engineers to implement energy saving
throughout the factory was an issue for thecustomer when renewing their production
facilities. We implemented a facility diagnosis
by checking the deterioration of all electricalequipment, such as substation equipment,
including equipment manufactured by othercompanies, high voltage motors, inverters
inside switchgears and controlgears, and circuit
breakers while clarifying recommendations on
the timing of the renewal of such equipment.
We were awarded a contract that entails everything from replacing existing products with Fuji
Electric ones to 24 hours a day, 365 days ayear maintenance services, and have thereby
contributed to higher than ever energy-saving
effects and operational reliability.

Fuji Electric Report 201916

Expand the systems business throughpromotion of an overseas partnership strategy

Power Electronics
Systems Industry

Executive Officer
Corporate General Manager,
Power Electronics Systems Industry Business Group

Hiroshi Tetsutani

Net Sales

Operating Income(Billions of yen)

(Billions of yen)

322.5

332.0

Change

+9.5

6.0%

6.6%

OperatingMargin21.9

Change19.4

systems, monitoring control systems, and other systems havean extensive delivery track record, enabling us to have a deep
understanding of the production processes of customer plants.
By combining these differentiated products with production
floor expertise we are able to establish ideal plants and systems
that address the issues of customers.

+2.5

Priority Measures for Fiscal 20192018
Results

2019
Management
Plan(Target)

(FY)

2018
Results

2019
Management
Plan(Target)(FY)

Awareness of Market Needs
In the industrial field in Japan, a shortage of labor is stimulating
an increase in demand for automation and reducing labor
requirements. In addition, initiatives are being stepped up towardheightening competitiveness through production reforms such as
the visualization of equipment operating conditions as well as theprediction of equipment defects and analysis of the reasons forsuch defects. Moreover, renewal and energy-saving investments
are continuing due to aged production equipment in thematerials field.
In China, we anticipate investment in energy saving driven
by environmental measures, and investment in automation andlabor saving on the back of a shortage of labor. Meanwhile, we
anticipate new and renewal investment in the materials field inSoutheast Asia and India.
In the transportation field, such as ships and railroads,
making equipment lighter and more compact while reducing
environmental impacts is becoming a global issue.

Strengths of the Power Electronics
Systems Industry Segment
The Power Electronics Systems Industry segment provides awide range of products—combining drive equipment, measuring instruments, control equipment, and the Internet of Things(IoT) that facilitate the automation of production equipment andlabor saving—to a broad spectrum of customers, from those in
the materials field to the assembly field. In particular, the segment’s greatest strength is its ability to be the first to introduce
to the market competitive power electronics products equippedwith our own power semiconductors, the key devices for facilitating energy saving. The extensive lineup of our core productof inverters that are suitable for all industries and a variety of
applications is the segment’s forte while motion systems combining servo systems and controllers that boast industry-leading levels of control performance have a considerable delivery
track record in machine tools, packaging machinery, and otherareas. As for steel and cement plants, our drive control

17 Fuji Electric Report 2019

We will expand the systems business in China and elsewhere in
Asia through M&A activities and a partnership strategy withcooperative companies while setting the business targetingships to a growth trajectory.

Expansion of the systems business

In China, we will expand a system that facilitates production
optimization and energy saving by leveraging Dalian Fuji
Bingshan’s air-conditioning heating and cooling technologies
and equipment and its sales channels while combining inverters, measuring instruments, control equipment, and energy
management systems to target beverage plants. Moreover,
we will expand sales of drive control systems and monitoring
control systems for the materials field by utilizing Shanghai
Electric’s sales channels. In Southeast Asia, we will leverage
the engineering and sales channels of Fuji CAC of Vietnam topromote sales of control systems for cement plants, while inIndia, we will increase sales of control systems for steel plants
centered on Fuji Gemco.
In Japan, we will continue to focus our efforts on capturing
renewal demand for aged equipment in the materials field while
promoting sales of semiconductor production equipment
through the introduction of new servo system products. In addition, we will expand the systems business by providing datacollection equipment and analysis and support services utilizing
IoT for process assembly such as for automotives.

Expanding ship exhaust gas cleaning systems
operations

Fuji Electric will expand its ship exhaust gas cleaning systems
operations, business negotiations for which are increasing due
to environmental regulations. We will bolster production capabilities and reinforce engineering systems while promoting productivity increases and cost reduction through the introductionof automation equipment. Additionally, we will respond to customer needs by developing large-sized products, with a goal oflaunching them in fiscal 2019.

Close-Up

Facilitating productivity and quality enhancements through data collection andanalysis of production equipment
Structure of OnePackEdge
OnePackEdge

Data containedin the product

Data collection
section

Data collection
sectionProcessing
Sensors
Temperature
Vibration
Pressure …
Current

Data A

AnalysisAutomatic software (MSPC)
conversion

Data collection
sectionInspection

Assembly

CNC

Sensors

PLC

Sensors

PLC

Operational
information
Quality …
information

Data A

Data B

Data A

Data B

Data B

Review of Operations

Utilization of IoT in order to improve operations andenhance productivity on production floors has been
increasing in recent years.
“OnePackEdge,” comprising data collection sections andanalysis software, supports analysis of the factors of equipment abnormalities and defects by collecting together data
including information on temperature, vibration and operation,and quality from production floor sensors and controllers.
We contribute to the early resolution of issues facing
customers by providing data collection and analysis in
one package.

Data collection section“OnePackEdge Controller”

Case Study

Automotive
Manufacturer(Japan)Significantly shortening data collection andfactor identification time
As data management was conducted departmentally on the customer’s production floors, datacollection factor identification took a considerable
amount of time when problems occurred.
By adopting “OnePackEdge,” the amount oftime required to collect and aggregate data on
the motor rotation speed and current of processing equipment, screw-tightening pressure

on assembly equipment, breakdown history, andother issues at the customer’s engine factory
was drastically reduced. Furthermore, Fuji
Electric’s proprietary software makes it possible
to predict and prevent abnormality occurrences.
Therefore, we are contributing to the customer’s
operational efficiency improvement and quality
enhancement.

Contributing to the resolution of the environmental problems of ships
The International Maritime Organization will strengthen
regulations on sulfur oxide (SOx), a pollutant, in oceans
throughout the world from 2020. The running costs ofexpensive low-sulfur fuels that conform to these regulations
has become an issue.
Fuji Electric offers ship exhaust gas cleaning systems
that enable the continued use of current fuel. We provide
SOx scrubbers that reduce sulfur oxide in exhaust gas bymixing sea water with exhaust gas to create a chemical
reaction, and a combination of gas analyzers that measure
the constituent concentration of SOx scrubbers andexhaust gas in real time as well as inverters and controllers
for managing a feed pump that draws seawater in an optimal manner.
In these ways, Fuji Electric’s ship exhaust gas cleaningsystems are helping customers to adhere to air pollution
regulations.

System structure (Fuji Electric provides blue areas)

Laser-type
gas analyzers
SOx scrubbers

Exhaust gas monitor

システム構成（青字Exterior of scrubbers

レーザ式
ガス分析計

SO X スクラバー

Heat exchanger
Tank
Control
panel
Wastewater
treatment
equipment
Pump

Seawateris sprayedfrombranchpipe

熱交換器

Exhaust gas
rotates andrises

Shipbuilder(Japan)Limiting required loading space through theworld’s smallest scrubbers
The customer was planning to equip mediumsized new ships with SOx scrubbers in order toconform to regulations but securing cargo space
had become an issue.
Fuji Electric’s scrubbers are the world’s firstscrubbers for ships to adopt cyclone technology
in their internal structure. By securing the retention time of exhaust gas inside scrubbers, wehave heightened the cleaning effect of scrubbers

ポンプ

on SOx, and realized the world’s smallest scrubbers, at 50% of the volume of those of othercompanies, thereby contributing to a reductionof the loading space required for scrubbers on
customer ships. We are creating new businessas a result of our compact-sized scrubbers,
which are suitable for both new and existingships and make placement easy to consider,and providing optimal systems.

Fuji Electric Report 2019タ排

Water quality
measurement
tool
EngineInternal structure of scrubbers

Case Study

排

18

水質

Increase automotive sales by expanding ourpower semiconductor production capacity

Electronic Devices

Managing Executive Officer
Corporate General Manager,
Electronic Devices Business GroupToru Housen

Priority Measures for Fiscal 2019

Business Areas

Launching mass production of new products forautomotive applications■ Semiconductors(Industrial and automotive fields)■ Magnetic disks

Net Sales

Operating Income(Billions of yen)(Billions of yen)

137.3

2018
Results

150.3

Change+12.9

2019Management
plan(Target)

(FY)

11.4%

11.6%

OperatingMargin15.6

17.5

Change2018
Results+1.9

2019
Management
plan(Target)(FY)

Awareness of Market Needs
Demand in the industrial and social infrastructure fields isincreasing for power semiconductors that fulfill the role ofenergy saving with high levels of conversion efficiency andpower control. This demand is driven by increasing energy
demands and environmental regulations such as global warming countermeasures.
In the industrial field, the adoption of renewable energies
such as wind power and solar power is proceeding centeredon China and Europe, while demand for inverter air-conditioning
units is growing in China. Over the medium and long term, we
forecast that investments in production floor automation withthe aim of solving labor shortages and enhancing productivity
will result in growing demand for machine tools and robots.
The driver of growth going forward will be the automotive
field. We anticipate demand throughout the world for power
semiconductors for motor control inverters which are necessaryfor electric vehicles (EVs).

Strengths of the Electronic Devices
Segment
The strengths of the Electronic Devices segment are in technologies that enable the commercialization of IGBT modules
that contribute to increasing the efficiency, miniaturization, andreliability of power electronics by combining cutting-edge IGBT
chip technologies with package technologies possessing highheat dissipation and high levels of reliability. We are promptly
meeting market needs and providing ideal products for a variety
of applications through collaboration with our power electronics
systems business.

19 Fuji Electric Report 2019

We are moving ahead with the development and mass production of Reverse-Conducting IGBT (RC-IGBT) chips and 4thgeneration direct liquid cooling modules and we will provide
these products to customers throughout the world. We willbolster specification incorporation activities that conduct proposals at the customers’ product design stage and provide
new products that meet customer needs. Through these efforts
we will aim for further customer acquisition. By continuing toprovide full support after specification incorporation, we willheighten the value of Fuji Electric products.

Boost sales of 7th-generation IGBT for
industrial applications

We will aim to boost sales by bolstering product lines that combine 7th-generation IGBT chips that reduce losses by approximately 30% more than before and 7th-generation IGBT modules,
which boast high levels of heat dissipation and reliability. We willachieve differentiation by creating a lineup of high-capacity products not provided by other companies that can be easily applied
to equipment.
Targeting air conditioners, where there are calls for further
energy saving, we will respond to customer needs by expanding
our lineup of products for large, rather than compact models.

Accelerate improvements to manufacturing
capabilities

In order to grow sales, we are implementing appropriate equipment investments in a timely manner. In chip manufacturing(front-end processes), we are increasing 8-inch chip production
equipment centered on our Yamanashi Factory, while formodule assembly (back-end processes), we are augmenting
capacities for production bases in Japan and overseas that are
accelerating local production and consumption.

Close-Up

RC-IGBTs that realize miniaturization andhigh levels of reliability
One of Fuji Electric’s strengths is its RC-IGBT. RC-IGBTs
were adopted by the automotive industry and are currently
being deployed horizontally in industrial fields.
By using an RC-IGBT that arranges two types of semiconductor with differing functions—an IGBT and a freewheeling diode (FWD)—alternately in a straight line on asingle chip, it is possible to realize significant miniaturization
when compared with arranging an IGBT and an FWD in two
separate chips. A high level of reliability is realized as aresult of dispersal of the heat generated during operation.

Configuration of an
RC-IGBT

IGBT

Temperature distribution
during chip operation

FWD

FWD

IGBT

FWD

IGBT

RC-IGBT

RC-IGBT

25% reduction of chip area*

33% reduction of increases in chip heat*

Review of Operations* Figures derived by comparing IGBT and FWD with RC-IGBT under certain
assumed conditionsContribute to reducing the environmental impact of EVs andenhance driving distanceIn order to improve environmental impact reductions anddriving distances for EVs and hybrid electric vehicles, forwhich we anticipate an increase in demand, there is a needfor smaller, lighter, and highly reliable mounted components.
In order to meet that need, Fuji Electric provides direct
liquid cooling modules for inverters for motor control applications, which are essential to electrified vehicles (xEVs).

A direct liquid cooling module is equipped with an
RC-IGBT and uses a direct cooling structure that has higher
heat dissipation performance than prior products, realizing
smaller size, lighter weight, and a high level of reliability.

Electric Vehicle (EV)No. of xEV Units & Rate of Electrification

from
rate
h
t
ow 1%
l gr
4
33
nua 2023:
n
a
e
o
t
g
a 018
r
27
e
2
Av

(Millions of units)

40
30

(%)

Direct liquid
cooling module

40

Electric
vehicle

30

21

20
10
0

16
4
3
2016

10

5

7

4
2017

6

9

2018

2019

No. of xEV units (left)
Source : IHS2018

15
2020

21
2021

27

34

小型・高電力密度化を実現Inverter

20
10

2022

2023

(FY) 0Rate of electrification (right)

Motor
BatteryRealizing higher levels of efficiency and more compact size of power conditioning
systems for wind and solar power generation
The introduction of renewable energies such as wind andsolar power is proceeding in order to realize a low-carbon
society. Power conditioning systems (PCSs), an apparatus
for stabilizing power, are needed for wind and solar power
generation, while power semiconductors, which convert
power efficiently, are indispensable.
The 7th-generation IGBT products offered by Fuji Electric
are thinner than previous models. The combination of a chipthat reduces power loss through the application of Fuji
Electric’s micro-machining technology and a module withenhanced heat dissipation properties by applying newly developed materials, realizes highly efficient energy conversion andenhances levels of output electric power density*. As a result,more efficient and compact PCSs can be realized.
In order to expand use of 7th-generation IGBTs, we willreinforce specification incorporation activities at our design

centers throughout the world, targeting PCS manufacturers.
Going forward, we will aim to increase sales by expanding
our lineup of high-capacity products not provided by othercompanies.
*Power density per unit

PCS (photograph on left) and 7thgeneration IGBT module (Prime
PACK™ 3) for renewable energy
applications
Prime PACK™ 3 is a registered trademark of Infineon Technologies AG.

Fuji Electric Report 201920

Expand vending machine business in China
and Southeast Asia and bolster lineup oflabor and energy saving solutions for stores

Food and Beverage
Distribution

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

Yasuhiro Takahashi

a sales and service company in 2018. Our development andproduction systems in China were reinforced in 2016 with theconstruction of the second Dalian factory, which was equippedwith state-of-the-art automation equipment.
In Southeast Asia, a vending machine operator company
was created in Thailand in 2016 and a vending machine production and sales company in Indonesia was acquired from Kubota
Corporation in 2017. These two bases are playing a central rolein our efforts to explore these markets.

Business Areas■ Vending machines
Beverage vending
machines, vending
machines for food andother goods■ Store distribution
Store fixtures andequipment, automaticchange dispensers

Net Sales

Operating Income(Billions of yen)(Billions of yen)

113.6

113.6

Change0.0

2018
Results

2019
Management
Plan(Target)

(FY)

5.1%

5.8%

OperatingMargin5.8

6.6

Change2018
Results

2019
Management
Plan(Target)

+0.8

(FY)

Awareness of Market Needs
In Japan, customers such as beverage manufacturers, convenience stores, and supermarkets are promoting low-labor,energy-efficient operations in response to social issues such as
global warming and labor shortages stemming from the shrinking workforce.
Overseas, growing automation needs, such as those arisingfrom the attention surrounding low-labor convenience stores
employing cutting-edge technologies, are expected to stimulate
increased demand for vending machines in Fuji Electric’s focus
market of China. As for Southeast Asia, where markets are stilltaking shape, market participation by major beverage manufacturers is contributing to higher vending machine needs centeredon Thailand.

Strengths of the Food and Beverage
Distribution Segment
The strengths of the Food and Beverage Distribution segment
include its industry-leading share for vending machines as wellas the technological prowess that it has cultivated through thedevelopment of freezers and refrigerated showcases for stores.
These strengths are centered on the segment’s automation,
heating and cooling, and currency identification technologies,
which will be indispensable strengths in the growing laborsaving and energy saving markets.
Fuji Electric began developing its vending machine businessin overseas markets a step ahead of the rest of the competitors. In China, our first Dalian factory commenced operations in2003 as a joint venture with a local partner, and we established

21 Fuji Electric Report 2019

Priority Measures for Fiscal 2019
Based on an accurate understanding of customer needs, theFood and Beverage Distribution segment is expanding its
vending machine business in China and Southeast Asia andbolstering its lineup of labor and energy saving solutions forstores.

Expand vending machine business in China
and Southeast Asia

The items sold in vending machines vary greatly between country and region. Fuji Electric is enhancing its vending machine
lineup based on the local needs seen in the markets it serves.
For example, operational know-how such as combining thefavored temperatures and displays of offerings (beverages,
foods or other goods), e-money compatible machines, and thedevelopment of machines with internal structures compatible
with various container shapes.
Furthermore, the Company is engaged in the developmentof operation systems that support efficient vending machine
operations for customers lacking such know-how in China andSoutheast Asia in order to encourage local beverage manufacturers to enter into the vending machine market.

Bolster lineup of labor and energy saving
solutions

In the Food and Beverage Distribution segment, we are developing store management systems that respond to customers’
labor and energy saving needs with functions for managing
product inventories, achieving traceability, and optimizing
store environments.
We are also bolstering our lineup of other products that
help alleviate labor shortages. These products include dual
stores / 2Way vending machines that enable convenience
stores to be converted into vending machine depots during
the nighttime hours as well as automatic change dispensers
that simplify the cash handling processes needing to be performed by store staff.

Close-Up

Supporting efficient vending machine operations for customers with AI
Vending machine

Operation /Management

DeliveryRemote configuration（Lighting, temperature,
prices, etc.）

Restocking
order

Review of Operations

Many vending machine business operators in China lackknow-how.
Issues faced in this market include losses of sales
opportunities due to depleted stock as well as slow progressin streamlining delivery routes. Improving investment returns
through efficient operations will be key to promoting the
spread of vending machines going forward.
Capitalizing on the technologies and know-how Fuji
Electric boasts as a leading manufacturer in the domestic
market, we are moving ahead with the development of asystem that uses artificial intelligence (AI) to support vending machine operations. Areas in which this system is applicable include the formulation of the necessary sales anddelivery plans and the demand projections for items sold invending machines.
By packaging AI-powered operation systems withvending machines, Fuji Electric seeks to drive the expansion of vending machine markets by creating frameworks
for maximizing customer earnings.

Inventory
information, sales
information, etc.

Vending Machine
Operation System
AI-powered proposal of optimal sales and delivery plans
based on vending machine information

Contributing to labor and energy savings at stores
Realizing store labor savings with vending machine
automation technologies
In the store distribution business, there is a rising need forthe automation technologies that Fuji Electric has fosteredthrough the development of vending machines. We are thus
seeing a rise in the introduction of self-service cash registers using Fuji Electric’s automatic change dispensers aswell as vending machine convenience stores.
Fuji Electric is also proposing a new store model for
stores that have difficulty securing nighttime staff. In thismodel, we create dual stores / 2Way vending machinesthat reduce labor requirements and improve consumer
convenience by functioning as showcases during the day
and vending machines at night.

Automatic change dispenser

Vending machine convenience store

Nighttime（vending machines ＝unmanned stores）

Daytime (showcases =manned stores)

Reducing air-conditioning energy consumption andinflux of dust and particle matter through store air pressure control
Fuji Electric has developed and launched a new system forcontrolling the air pressure inside of stores.
This system uses sensors to control the balance of air
intake and exhaust by ventilation fans and other equipment
to prevent influxes of outside air when automatic doors are
opened or closed. Furthermore, the system realizes a 10%
reduction in energy consumption by lowering the burden
placed on air conditioners while also cutting particle matter
influx by 30%, thereby decreasing the amount of cleaning
work needing to be done by employees.
This system has won great praise from customers for its
ability to contribute to labor and energy savings in stores.

Dual stores / 2Way vending machinesStandard store → Outside dust
and particle matter flow into store

System-equipped store →No influx

Influx ofoutsideair

Preventionof influx• 10% reduction in energy consumption• 30% reduction in particle matter influx
Note: Figures based on a verification test

Fuji Electric Report 201922

Fully leverage cultivated power plant strengths toshift to renewable energy and after-sales businesses

Power Generation

Executive Officer
Corporate General Manager,
Power Generation Business Group

Tadao Horie

numerous solar power EPC projects as the number of suchprojects grew rapidly following the introduction of feed-in tariff
schemes. In nuclear power-related equipment, we have developed a track record with regard to fuel transport and radioactive waste material treatment facilities.
The plant engineering experience and the insight andexpertise gained through this experience are valuable assets of
the Power Generation segment.

Business Areas■ Renewable and newenergyGeothermal power,hydro power, solar power,
wind power, fuel cells■ Thermal power■ Nuclear power-related
equipment2018 実績

Net Sales

Operating Income(Billions of yen)(Billions of yen)

107.0

116.0
Change+9
2018
Results

2019
Management
Plan(Target)(FY)

Priority Measures for Fiscal 2019

4.4%

3.7%

OperatingMargin4.8

4.3

Change2018
Results

2019
Management
Plan(Target)

–0.5
(FY)

Awareness of Market Needs
Since the adoption of the Paris Agreement, an internationalframework for combating climate change, there has been astrong global push to realize a low-carbon society. This push
has stimulated structural reforms in thermal power businesses
in Japan and overseas.
Against this backdrop, it can be expected that use ofrenewable energy that does not emit greenhouse gases will
spread. At the same time, demand is growing on a global
scale for the improvement of generation efficiency throughreplacements of and upgrades to aging generation facilities.
Furthermore, decommissioning has been decided or isbeing considered with regard to several nuclear power plants
in Japan. This situation is expected to drive the growth of thedecommissioning system market going forward.

Strengths of the Power Generation
Segment
The Power Generation Segment boasts a diverse lineup of
products encompassing thermal power, geothermal power,hydro power, solar power, and wind power generation equipment; nuclear power-related equipment; and fuel cells. We also
have an extensive track record of delivering such power generation facilities to a wide range of power generation business
operators through engineering, procurement, and construction(EPC) and other arrangements.
Fuji Electric has more than half a century of experience inthe thermal and hydro power fields, and we have maintained
the top global share of deliveries of geothermal power generation equipment since 2000. In addition, we have participated in

23 Fuji Electric Report 2019

The Power Generation segment has begun overhauling its
previous business structure, which was centered on thermal
power generation. By fully leveraging its cultivated power plant
strengths, Fuji Electric is shifting its business portfolio toward
renewable energy and after-sales businesses.

Expand renewable energy orders

Fuji Electric aims to expand renewable energy orders throughthe provision of high-value-added solutions. In the wind andsolar power fields, we will contribute to stable electricity quality and energy supplies by making excellent use of the various
technologies related to control and electricity storage.
Meanwhile, in the geothermal power field, we are bolstering
our lineup of binary geothermal power offerings that make useof the heat emitted from existing facilities as we seek to help
quickly bring geothermal power plants on stream.

Expand after-sales businesses

In its after-sales businesses, Fuji Electric is shifting its focus
from inspections and repairs to proposal-based services. In
the thermal and geothermal power field, we boast extensive
insight and experience as a power generation equipment
manufacturer that is knowledgeable in everything from structures to materials. Leveraging this foundation as well as thetechnologies of the specialized after-sales service company
acquired in the United States in fiscal 2015, we aim to expand
orders for onsite and quick delivery after-sales services toimprove power generation efficiency and to extend equipment
lifespans. As for hydro power, our efforts will be focused on
responding to the robust replacement demand by contributing
to customers’ businesses and to reductions in environmental
impacts through such means as improving efficiency andmitigating oil leak risks.

Reinforce and expand decommissioning system
operations

Centered on fuel transport and radioactive waste material treatment facilities, areas where it has a developed track record, Fuji
Electric is taking steps to reinforce and expand its domestic
decommissioning system operations. Looking specifically atradioactive waste material treatment facilities, we are enhancing
our proposal capabilities with the aim of spreading applicationof the SIAL® cutting-edge solidification technology, which has
a track record overseas.

Close-Up

Contributing to expanded use of renewable energy through binary geothermal power*1 A generation method in which geothermal steam directly turns turbines*2 A generation method in which low-temperature steam or hot water is used to heatand evaporate organic mediums with low boiling points so that the resulting steam
can turn turbines

Flash-cycle

Nga Awa Purua Geothermal Power Station(140 MW generation capacity, New Zealand)

Review of Operations

Since delivering the first geothermal power generation facility to
be put to practical application in Japan in 1960, Fuji Electric hasproceeded to supply 82 geothermal power turbines around theworld with a combined generation capacity of 3.2 GW. Principal
examples of Fuji Electric-supplied facilities include one of theworld’s largest flash-cycle*1 turbines as well as one of Japan’slargest binary*2 turbines.
Demand for binary generation technologies is rising above thedemand for flash-cycle technologies as binary technologies allow for
power generation to be performed using hot water or low-temperature steam, thus bringing the potential to expand the scope of geothermal power generation businesses.
Fuji Electric is advancing the development of equipment thatrealizes high-efficiency generation using smaller heat sources. We
also package geothermal systems as decentralized power sources inbundles tailored to provide the ideal response to customer needs inorder to reduce the amount of expenses and time required for installation. In addition, we develop portable systems to enable equipment
to be more easily reused in case a heat source is depleted.
In this manner, we are committed to contributing to the spreadof renewable energy by providing these solutions for heightening
the profitability of customers’ power generation operations.

Binary generation

Takigami Binary Geothermal Power Station ofIdemitsu Oita Geothermal Co., Ltd.
(5.05 MW generation capacity, Oita Prefecture, Japan)Upgrading hydro power generation facilities to contribute to higher efficiency andreliability and lower costs
Fuji Electric has been involved in the hydro power field longer thanany other area of power generation. Over our many years of involvement in this field, we have delivered 431 hydro power generation
facilities to power companies and private generation business operators in Japan with a combined generation capacity of 4.8 GW.
Hydro power has continued to support the economic growth ofJapan as a reliable, low-cost base load power supply. As existing hydropower facilities age, demand is growing for scrap and build*1 projects.
For example, we installed a turbine designed using state-ofthe-art 3D flow analysis technologies at the Akiha No. 1 Power
Station and were thereby able to boost this facility’s generation
capacity from 45.3 MW to 47.2 MW.
One strength of Fuji Electric in this field is its turbine output
adjustment technologies. Previously, it has been common for
output adjustment to be performed using hydraulic servos forturbines with medium to large output capacities and electric
servos for small-capacity turbines. However, Fuji Electric is leading the industry as it was among the earliest to realize the practical application of hybrid servo systems that maintain the costbenefits of electric servos while being applicable to a wider rangeof turbines.
The upgrade at the Akiha No. 1 Power Station enabled us torefine this system while employing a proprietary design*2 that utilizes backup facilities under normal operating conditions in addition
to during main equipment failures. This design realizes the samelevel of performance as a conventional system with less than half
the equipment.
The reduction in the number of parts not only increased thereliability and ease of maintenance of the system, but also contributed to significantly lower initial and running costs.

Akiha No. 1 Power Station of Electric Power Development Co., Ltd.
(47.2 MW, Shizuoka Prefecture, Japan)

Hybrid servo system*1 Projects in which aged, inefficient facilities are decommissioned and replaced withnew facilities to improve efficiency*2 Joint patent held with Electric Power Development Co., Ltd.

Fuji Electric Report 201924

Initiatives for Accomplishing the SDGs

Relationship Between Fuji Electric’s Activities and the SDGs
The United Nations Sustainable Development Goals (SDGs) area set of goals geared toward achieving economic growth while
simultaneously addressing social and environmental issues.
Fuji Electric’s corporate philosophy and management policies
and its energy and environment businesses are congruent with
the SDGs and other contemporary expectations.
We are committed to contributing to the realization of asustainable society through the exercise of our corporate
philosophy, and the Fuji Electric Code of Conduct has been
established based on this commitment to serve as a concrete
guide for the actions of employees. In June 2019, the Code of
Conduct was revised to further enhance initiatives aimed at
the accomplishment of Fuji Electric’s ideals.
This revision was meant to present our policies for responding to the SDGs and other targets and standards shared by the
global community in a clear form to both internal and external
stakeholders. By acting in accordance with the revised Code of
Conduct, we will pursue higher corporate value as a sustainably
growing company.

Priority SDGs
In fiscal 2018, Fuji Electric identified the goals among the SDGs
that it will prioritize addressing in its business activities.
Assessing the link between the value created by the four businesses advanced by our five segments and contributions to theaccomplishment of the SDGs, we selected five priority goals.
Furthermore, additional goals were designated as priorities byverifying the relationship between the SDGs and the reinforcement of our operating foundation, making for a total of nine
SDGs to be pursued through overall corporate activities.

Contributions to Accomplishment of Five Priority SDGs
■
■

■
■

■
■
■
■

■

 pread of renewable energy use
SImprovement of energy efficiency
 eduction of CO2 emissions from industrial processesR
Reinforcement of social and industrial infrastructure rovision of energy and other basic services for cities and residential areasPDevelopment of sustainable transport systems
 fficient use of natural resourcesE
Rigorous management and reduction of emissions of chemical
substances and waste
 ontributions to climate change countermeasures through the supplyCof products that help reduce CO2 emissions

Policies for Future Initiatives in Contribution to the
Achievement of the SDGs
Fuji Electric will continue in-house education activities designed
to communicate its policies for contributing to the accomplishment of the SDGs. At the same time, the Environmental Vision
2050 will be used to guide environmental initiatives in ourbusiness activities and the disclosure of related information.
The Company has also begun examining methods ofassessing the social and economic contributions made to theaccomplishment of the SDGs through its business activities
from various perspectives, such as quality of life. These assessment methods are scheduled to be instituted in fiscal 2020.

25 Fuji Electric Report 2019

Resolution of Social andEnvironmental Issues

Creation of Customer Value

Energy and Environment Businesses
Clean energy

Stable supply of energy

Automation

Energy saving

Fuji Electric Code of Conduct
Management Policies
Corporate Philosophy
Contribute toprosperity

Encourage
creativity

Seek harmony
with theenvironment

SDGs to be Addressed through Fuji Electric’s
Companywide Activities
Priority SDGs to be Addressed throughEnergy and Environment Businesses

Material Management Initiatives

Material Issues to Reinforcing Operating Foundations
Fuji Electric has identified key issues pertaining to the implementation of its Code of Conduct. We are proactively addressing theseissues to improve long-term corporate value (the Fuji Electric Code of Conduct is available in its entirety on the following page).
Code of Conduct Area

Key Issues

Human rights

Major Initiatives■

Relevant SDGs

Relevant Pages

Implement human rights due diligenceImprove occupational health and safety awarenessamong employees■ Bolster initiatives for ensuring occupational healthand safety and protecting employee health■

Safe and healthy
workplaces xpand areas in which female employees makeEcontributions■ Utilize employees over 60■ Broaden scope of duties performed by differently
abled employees■

Respect andvalue all people

Diversity■

Work-life balance

Respect andvalue ourcustomers

Improvement ofcustomersatisfaction

Respect andValue chains forsupporting susvalue ourbusiness partners tainable societies

Respect andvalue the global
environment

Respect andvalue interaction
with society

■
■

■
■


Improveproduct and service quality
Enhance customer support and service systems

Customers
P31

 ractice fair and impartial procurement
PFulfill social responsibilities together with business
partners

Business
Partners
P31–P32

 onduct timely, fair, and impartial information
C
disclosure■ Enhance shareholder and investor engagement
activities

Constructive
shareholder andinvestorengagement■

Realization of alow-carbon
society■

Creation of arecycling-oriented
society nhance development of future managementEcandidates

Reduce society’s CO2 emissions through provisionof energy-saving products■ Reduce CO2 emissions during production■

Shareholders /Investors
P32

Environment
P33-P36

 romote 3Rs (reduce, reuse, recycle) in relation toPproducts and production activities ontribute to communities through activities forCprotecting the natural environment and promoting
youth development■ Engage in community outreach at major sites ofoverseas operations

Social Outreach(LocalCommunities)
P46

 stablish and revise internal rules and conductEoversight, monitoring, and education based on the
Fuji Electric Compliance Program■ Cultivate mindset of strict compliance among
employees

Compliance
P42–P43■

Community
outreach

Material Management
Initiatives

Respect andvalue ourshareholders andinvestors■ romote flexible workstyles
POffer work-life balance support and foster conducive workplace environments
Initiatives for
Accomplishing the SDGs

Human resources
development■

People(Employees)
P29–P30■Make global
compliance a toppriority

Effective compliance program
implementation

Risk
Management

Top management
will thoroughly
practice thisCode of Conduct

Improvement ofmanagementtransparency andoversight function■

 einforce business continuity capacities
R
Strengthen information security

Risk Management
P44–P45■

Reinforce corporate governance framework

Corporate
Governance
P37–P41■

Fuji Electric Report 201926

Fuji Electric Code of Conduct

The Fuji Electric Code of Conduct is a guideline for the behavior of all employees and simultaneously a declaration of ourcommitment to resolving social and environmental issues across the supply chain and contributing to the accomplishmentof the SDGs through our corporate activities.

Forward

2. Respect and value our customers

Fuji Electric and our employees, in our corporate philosophy, state that we “pledge as responsible corporate citizens in a global society to strengthen our trust with
communities, customers and partners, and fulfill our mission in good faith,” and through all corporate activities wewill “contribute to prosperity,” “encourage creativity,” and“seek harmony with the environment,” while also contributing to the achievement of the United Nations
Sustainable Development Goals (SDGs).
In order to practice our corporate philosophy to fulfill
social responsibility and act with high ethical standards
while understanding and complying with relevant laws,
regulations, international rules, and the spirit of such regulations and rules, both domestically and abroad, Fuji Electricand its employees have defined this code as a foundation
for decision-making and behavior.

Fuji Electric and its employees will strive to improve customer
satisfaction by expanding business globally and providing
safe, secure, and reliable products and services that makefull use of energy and environmental technologies.

1. Respect and value all people■

Fuji Electric and its employees will respect human rights intheir relationships within all corporate activities. In addition,
we will promote the activities of diverse human resources,
and strive to create a workplace that takes health andsafety into consideration, with each employee having
decent work.
■■■ e will conduct human rights due diligence to recognize,W
prevent, and deal with adverse human rights harm based oninternational human rights standards such as the Universal
Declaration of Human Rights and the United Nations Guiding
Principles on Business and Human Rights.
 e will build human resources and handling systems thatW
enable employment and performance of diverse humanresources, and strengthen human resource training to achieve
development for each employee and the full potential of teams.

■■

 e will respond to our customers in good faith and reflectW
their feedback in improvements to products and services.

3. Respect and value our business partners
Fuji Electric and its employees, along with business partners, will promote procurement activities aimed at establishing fair and equitable transactions and a supply chainthat supports a sustainable society.

■ hrough fair and equitable transactions, we will build better
T
partnerships, deepen mutual understanding, and strive tomaintain and improve cooperative relationships.
 e will seek suppliers globally that are highly competitive inWterms of quality, price, turnaround, and service, and thatconsider sustainability in terms of the environment, society,and governance.

4. Respect and value our shareholders
and investors
Fuji Electric and its employees will deepen mutual understanding and trust by promoting honest and active information disclosure and constructive dialogue with shareholders
and investors.
■

 e will put top priority on employee health and safety, andW
strive to create an efficient and comfortable work environment.
■

27 Fuji Electric Report 2019 e will promote technology development and manufacturW
ing that meet the needs of our customers, and provide
safe, reliable, high-quality products and services with all
our strength.

 inancial information will be provided that is useful to shareF
holders and investors, and non-financial information such asenvironmental, societal and governance matters, in a timely
and fair manner, and in accordance with relevant laws, regulations, and the Company’s fair disclosure policy.
 onstructive dialogue with shareholders and investors will beCconducted through financial results briefings and small meetings, and information obtained from such dialogue will beshared as feedback with executives and relevant departments.

5. Respect and value the global environment
Fuji Electric and its employees will, according to the Fuji
Electric Basic Environmental Protection Policy, proactively andactively tackle global environmental issues in all corporate
activities and contribute to the realization of a low-carbon,
recycling-oriented society that is in harmony with nature.
■■■ ith the aim of achieving a low-carbon society, we willW
strive to reduce greenhouse gas emissions from our own
production activities and, by providing products and services to customers that help prevent global warming, we
will contribute to the reduction of CO2 in society.
 ith the aim of achieving a recycling-oriented society, we willW
strive to reduce our environmental impact throughout our
supply chain, and promote waste reduction during production
with efficient use of water and the 3Rs (reduce, reuse,recycle).
 ith the aim of achieving a society in harmony with nature,W
we will promote activities that contribute to conservation of
biodiversity through our corporate activities.

6. Respect and value interaction with society
Fuji Electric and its employees will, as good corporate
citizens, actively participate in communities, communicate
with local stakeholders, and contribute to their development
through collaboration.

■

 e will strive to understand social circumstances in eachWcountry and region, and gain mutual trust with our stakeholders through communication.
 e will work with local communities, governments, NGOs,W
and other stakeholders in communities in an effort to contribute to those communities by resolving social issues.

7. Make global compliance a top priority
7-1 Thorough complianceFuji Electric and its employees will, as members of a highly
public group that declares its contributions to solutions to
global problems such as the environment and energy, recognize the importance of compliance, fully understanddomestic and foreign laws, customs, and all other social
norms and their spirit, comply with them, and always act
with the highest ethical standards.

 cting in accordance with laws, regulations and ethicalA
standards■

Complying with contracts■

Prevention of bribery and corruption■

Compliance with competition laws■

Fair selection of business partners■

Insulation from antisocial forces■■ istinction between public and private, and prohibition ofD
insider trading uild sound relationships with political bodies and governB
ment agencies

7-2 Thorough risk management
Fuji Electric and its employees will implement thorough risk
management for the sustainable growth of Fuji Electric.
■■

 e will strictly manage our intellectual property, personalW
information, customer and confidential information, and fully
respect the property and information of others.
In addition to natural disasters, we will build and strengthen
our organizational crisis management system to protect
employee safety and business continuity from malicious
threats such as cyber attacks and terrorism.

8. Top management will thoroughly practice thisCode of Conduct
To put this Code of Conduct into practice, Fuji Electricmanagement will build and promote a governance systemthat ensures the soundness, efficiency, transparency, andeffectiveness of corporate management, and a compliancesystem that ensures thorough compliance with laws andsocial norms. This Code of Conduct will be shared with all
employees and communicated to partners, etc., as well as
supply chains.
In the event of a violation of the law or any other situation that violates this Code of Conduct, while working toresolve issues and fulfilling accountability to society, top
management will strive to investigate causes, recoverdamages, prevent recurrence, and deal strict punishment.

Fuji Electric Report 2019

Material Management
Initiatives

■

■

28

People (Employees)

From the perspective of guaranteeing the ongoing development of its business, Fuji Electric is seeking to secure talented human resources by promoting diversity, through means such as promoting inclusion of senior citizens andwomen in the workforce; fostering a comfortable workplace; enabling flexible workstyles; and bolstering our competitiveness in recruitment. The foundation for these activities is formed by the principles of respect for human rights,
occupational health and safety, and protection of employee health. In addition, our human resource strategies prioritize
selection and development from a results-oriented perspective and the development of human resources for expanding global operations in order to bolster our business constitution and competitiveness.

Respect for Human Rights
Enhancement of Human Rights Due Diligence Activities
The Fuji Electric Code of Conduct states that we should “respect
and value all people,” and we are promoting respect for humanrights accordingly.
The Company respects the human rights of all of its
employees and practices human rights due diligence to ensurethat the rights of everyone connected to its business activities
are respected.

Based on international human rights standards, such as the
Universal Declaration of Human Rights, as well as on the UN
Guiding Principles on Business and Human Rights, the 2019revision of the Fuji Electric Code of Conduct clearly states ourcommitment to ensure that the Company is never involved in orcomplicit in human rights violations.

Occupational Health and Safety
Acceleration of Occupational Health and
Safety Initiatives
Fuji Electric believes that the “health and safety of workers takes
precedence over everything else” and has positioned occupational health and safety as a top priority for the Company. In linewith this philosophy, we actively communicate the principles of
our Health and Safety Basic Policy both inside and outside of theCompany and are advancing occupational health and safety
initiatives based on this policy.
Health and safety education programs based on hands-on
curricula are planned and implemented on an ongoing basis
throughout the duration of each year. These programs include
legally mandated health and safety education, training for new
employees, and education and training programs planned byoperating sites or construction work sites. In addition, we provide training for supervisors and health and safety representatives to educate the frontline leaders at associate companies. A
focus in recent years has been traffic seminars and mental
health education aimed at eliminating accidents involving commercial vehicles.

In recognition of these efforts, Fuji Electric was included in
the 2019 Certified Health & Productivity Management
Organization Recognition Program (White 500) in fiscal 2018,recognizing it as a company exhibiting excellence in healthand productivity management.
Frequency Ratio of Occupational Accidents (in Japan)
（FY）

2014

2015

2016

2017

2018

Fuji Electric

0.12

0.08

0.08

0.19

0.08

Number ofoccupational
accidents

33

30

24

23

23

All industries

1.66

1.61

1.63

1.66

1.83

Electricalequipment
manufacturers

0.41

0.54

0.51

0.45

0.58

Scope: Fuji Electric Co., Ltd.; Fuji Electric FA Components & Systems Co., Ltd.

Diversity
Support for Contributions by Diverse Human Resources
One of Fuji Electric’s management policies states that we will
“maximize our strengths as a team, respecting employees’
diverse ambition.” Diversity has been identified as an importantpriority of human resource strategies accordingly.
The aging population in Japan is expected to lead to asignificant expansion in the number of employees aged over 60
a decade from now, making the transmission of manufacturing
skills an important task. For this reason, we are examining thepossibility of introducing new employee treatment systems topromote the contributions of all employees over 60, not justthose with high-level technical skills.

29 Fuji Electric Report 2019

Meanwhile, Fuji Electric is working to empower its female
employees through the continued implementation of work-life
support systems and promotion of diverse workstyles. In addition, we are enhancing the mentor system for female employees and seeking to expand the female population at Fuji Electricby aggressively recruiting female university students from science and engineering backgrounds. Steps are also being taken
to increase the number of female employees in supervisory
positions by bolstering career development support for female
employees and offering them a wider range of opportunities totackle new challenges.

Female Employees and Managers
（FY）

2017

2018

2019

2023
TargetRatio of female employees among
newly hired employees*1

14%

20%

21%

20%

Ratio of female employees inmanagement positions*2

1.9%

1.9%

2.3%

3.0%

Number of female employees insupervisory positions*3

215

225

249

400

Data collected from Fuji Electric, Fuji Electric FA Components & Systems, Fuji
Office & Life Service, Fuji Electric IT Center, Fuji Electric Finance and Accounting
Support, Fuji Architects and Engineering, and Fuji Electric FrontierCompanies hiring new female employees are Fuji Electric and Fuji Electric FA
Components & Systems*1 Number of newly hired female employees refers to graduates from universities ortechnical colleges*2 Number of female employees in management positions refers to employees ofmanager rank or above*3 Number of female employees in supervisory positions refers to employees ofassistant manager class or above

Fuji Electric promotes the employment of differently abledindividuals with a goal of enabling as many such individuals as
possible to continue working until retirement age. Accordingly,
we aim to grow rates of employment of differently abled individuals while remaining above the legally mandated rate. Efforts
to this end include the expansion of the scope of duties performed by differently abled individuals, support for ongoing
employment, and other measures for promoting the employment of differently abled individuals.
Ratio of Differently Abled Employees to Total Employees
（FY）

2017

2018

Number of differently abled employees

370

378

397

Employment rate

2.51%

2.57%

2.73%

2018

2019

Legally Mandated Ratio: 2.0% until 2017, 2.2% from 2018

最小サイズ
ヨコ 12.8 ミリまで

Work-Life Balance
Workstyle Reforms and Work-Life Balance Support

（FY）

2016

2017

Paid vacation days acquired annually

14.3

14.1

14.5

Average overtime work hours

22.07

23.34

24.04

Location Flexible Working System Use
（FY）

2017

2018

Home office (registeredusers / number of uses)

559 / 610

744 / 1,940

Satellite office (registeredusers / number of uses)

284 / 444

387 / 457

Material Management
Initiatives

We are strengthening initiatives to help employees achieve
work-life balance by creating workplace environments that are
more conducive to the efforts of diverse employees and thatenable people to fulfill their potential.
Fuji Electric is promoting flexible workstyles through theintroduction of Location Flexible working systems that enable
employees to work in satellite or home offices. At the sametime, we seek to reduce excessive work hours and encourage
employees to acquire consecutive days of paid leave in order tofacilitate workstyles that achieve a better balance between
work and private life.
Furthermore, the Company is bolstering its range of work-lifebalance support systems and fostering conducive workplaceenvironments to help employees raising children or caring forfamily members strike a better balance between their work andtheir private life while still exercising their full talents at work.

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

Human Resource Development
Enhancement of Management Skills and Future Management Candidate Development
Developing the skills of employees is a top priority for management. We are focused on cultivating professionals that can contribute to increased global competitiveness as we implement
proactive employee training and education programs.
Employee awareness surveys have indicated a need toenhance mid-level line management (manager rank) capabilities. We are addressing this need through systematic rotation
programs for enabling managers to gain more experience aswell as through other initiatives to augment management skills.
The Company has also instituted measures for cultivating future
management candidates. Opportunities for enhancing thedevelopment of the management candidates that will shape thefuture of Fuji Electric include careful selection of candidates
from among junior employees, effective on-the-job training
through position rotations, and participation in selective training.

Individuals will be registered as management candidates on asingle-year basis, and the registered candidates will be replaced
based on annual evaluations to promote ongoing development.
Fuji Electric also implements a variety of other training programs on an ongoing basis. These programs include levelspecific training, which is conducted in conjunction withpromotions, special assignments, or other such timings tofoster management capabilities, human skills, and logical thinking capacities. We also offer specialized-field training, forenabling employees to improve their capabilities or acquire
specialized knowledge or skills; manufacturing training, forlearning techniques and technologies; and global employee
training. In addition, employees are positioned strategically
based on their individual experience and skills.

Fuji Electric Report 201930

Customers

Fuji Electric promotes technology development and manufacturing that meet the needs of our customers, and provides safe, reliable, high-quality products and services with all our strength. In addition, we respond to our customers
in good faith and reflect their feedback in improvements to products and services.

Improvement of Customer Satisfaction
Enhancement of Customer Support and Service Systems
Fuji Electric’s Quality Assurance Policy stipulates that we are toassure the industry’s highest standard for quality in all of our
products and services. We are therefore advancing quality
improvement initiatives through a Companywide organizational
structure. In addition, we formulate a High Reliability Activities
Policy each year, based on which we dedicate our efforts toimproving quality at every stage of our business, from productplanning to sales and service.
Each business segment caters to different customers.
Accordingly, service divisions have been established in all
segments. We are also developing global service systems toensure that we are equipped to satisfy our customers.
Furthermore, our power electronics systems business andFood and Beverage Distribution segment have call centersthat respond to customer inquiries 24 hours a day, 365 days ayear. We also pursue higher levels of customer satisfaction
through customer satisfaction activities in which we endeavor
to broaden our business scope beyond after-sales services todeliver solution services that utilize Fuji Electric products andtechnologies to resolve customer issues.

Major Initiatives in Fiscal 2018
Power Electronics
Systems■■

Electronic Devices
Food and Beverage
Distribution■■

Power and New Energy einforcement of support systems by expandingR
scope of models (gas analyzers) that can receive
maintenance at the Company’s Thailand base olstering of support system by broadening theBrange of models for which inquiries can beaddressed through call centers (Shenzhen, China)
Improvement of service quality by developing
cloud-based service platform (China)
 nhancement of upgrade services by bolsteringEsales and technical service systems at bases inVietnam and other parts of Asia

Business Partners
Fuji Electric aspires to build strong relationships with its business partners through fair and equitable transactions, andwe are working together with our partners to promote procurement activities that contribute to the development
supply chains capable of supporting a sustainable society. We are committed to fair and equitable procurement that iscompliant with relevant laws and regulations in Japan and overseas, and our procurement activities are tailored forsustainability from both social and environmental perspectives.

Supply Chains for Supporting a Sustainable Society
Fair and Equitable Procurement 
Fuji Electric strictly adheres to principles of fair and equitableprocurement in compliance with procurement-related laws.
The divisions responsible for procurement at the head
office and other domestic operating sites take steps to ensure
legal compliance through regular audits of procurement activities and compliance training. Meanwhile, procurement divisions at overseas affiliate companies are implementing
procurement-related rules and standards based on the regulations of their respective countries.

31 Fuji Electric Report 2019

We also operate a Partner Hotline System on Fuji Electric’s
corporate website through which business partners can makereports regarding misconduct in the Company’s procurement
activities in order to prevent and quickly detect unlawful orunethical behavior. By earnestly addressing feedback frombusiness partners, we seek to build trusting relationships.

CSR Exercised Together with Business Partners
Fuji Electric believes that it is important to aim to be a company
with high social value by working with its business partners tofulfill its corporate social responsibility (CSR). To this end, weare promoting initiatives to prevent compliance violations andhuman rights infringements across the supply chain while
addressing conflict minerals. Proactive green procurement
initiatives are implemented from the perspective of environmental preservation.
In addition, CSR surveys are administered as one facet of
our CSR procurement efforts. In 2018, these surveys indicatedthat there were no business partners in need of immediate

corrective measures. Revisions will be made to surveys andfeedback methods going forward in order to facilitate better
understanding of the circumstances at business partners
through future surveys.
Major Initiatives in Fiscal 2018■■■

 SR surveys (administered to top 500 business partners
C
accounting for 80% of domestic transaction amounts)
 rocurement policy briefings for business partners
P(at individual factories and operating sites) rocurement-related compliance trainingP(held at 32 bases on rotational basis, 1,045 participants)

Shareholders / Investors
Fuji Electric is committed to building upon trusting relationships with shareholders and other investors. To this end, we
practice timely, fair, and equitable disclosure of information required by law and the regulations of the stock exchanges
on which the Company is listed as well as of other information deemed to be of value to shareholders and investors. In
addition, members of top management take part in activities for engaging with shareholders and other investors.

Constructive Dialogue with Shareholders and Investors
Timely, Fair, and Equitable Information Disclosure Furthermore, we actively disclose information deemed
relevant to shareholders and other investors, such as answers
to questions frequently asked by such stakeholders, whether
this information is management related, financial information,or non-financial information pertaining to social or environmental matters.
Such information is promptly disclosed through theCompany’s corporate website.

Material Management
Initiatives

Fuji Electric discloses information that may have a material
impact on the investment decisions of shareholders and otherinvestors in an effort to earn trust and foster proper understanding with regard to the Company. In these disclosure activities, we release information as required by law and by thedisclosure regulations of the stock exchanges on which theCompany lists its stock as well as in accordance with the Fair
Disclosure Rule of the Financial Services Agency.

Meaningful Dialogue with Shareholders and Investors 
The Company emphasizes dialogue with shareholders andother investors in its investor relations activities, and we arededicated to enhancing reciprocal communication in these
activities. We also strive to make effective use of the input
gained through these activities by relaying it to the Board of
Directors, management, and relevant divisions through reports
to committees or paper reports as deemed necessary.

External Recognition

Fuji Electric has been included in the following socially
responsible investment indexes, indicating that it has beenrecognized as a socially responsible company.

Major Initiatives in Fiscal 2018
Analysts andinstitutional investors

Private shareholders andinvestors

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

4
1
1
2


Factory
tours for shareholders:
4 factories (Suzuka, Tokyo, Kobe, and Chiba)■ Fuji Electric system solutions exhibits(498 participants in factory tours andsystem solutions exhibits)■

Fuji Electric Report 201932

Environment

Message from the Environmental Officer

Establishment of Environmental Vision 2050

Executive Officer
Corporate General Manager,
Production & Procurement Group
Fuji Electric Co., Ltd.

Masashi Kawano

Preventing climate change, effectively utilizing natural resources, preserving biodiversity, andaddressing other environmental issues are garnering rising attention. At the same time, the global
community is increasingly taking action toward realizing a sustainable environment. This push to
global action can be seen in the adoption of the SDGs by the United Nations in 2015 and in theimplementation of a climate change response framework in the form of the Paris Agreement in 2016.
Recognizing this social push, Fuji Electric established its Environmental Vision 2050 to guideaction for contributing to environmental preservation based on even loftier targets.
The vision sets the goal of our environmental initiatives to be realizing a low-carbon society, arecycling-oriented society, and a society in harmony with nature. Fuji Electric is approaching this goal
through a supply chain-wide effort to reduce greenhouse gas emissions, promote the 3Rs (reduce,reuse, recycle), and minimize impacts on ecosystems. We are thus working to accomplish this goal
through the efforts of employees as well as those of our associates.
Fuji Electric is dedicated to contributing to the realization of sustainable societies with innovativetechnologies and products going forward.

Fuji Electric positions the preservation of the environment asamong its top management priorities, and it has established its
Basic Environmental Protection Policy to guide activities foraddressing environmental issues. We have since been consistent in our approach to reducing the environmental impacts ofour business activities, and today we have in place an environmental management system that facilitates contributions toenvironmental preservation through our business.
In regard to global warming countermeasures in fiscal 2018,
contributions to CO2 emission reductions from products totaled
30,160,000 tons as a result of the high number of contributing
products shipped. Meanwhile, greenhouse emissions fromproduction activities increased by 15,000 tons because ofhigher production levels, but emissions per unit of production
decreased by 1 ton per ¥100 million worth of production.
The ratio of waste sent to landfills, a target for our efforts tocontribute to the realization of a recycling-oriented society, was
1.6% on a Companywide basis, a reduction of 0.7 percentage
point year on year.
Meanwhile, we helped protect biodiversity through ocean
and river preservation initiatives conducted as part of our social
contribution activities.
From fiscal 2019 forward, we will be adhering to the newly
established Environmental Vision 2050 as we seek to contribute to the realization of a low-carbon society, a recyclingoriented society, and a society in harmony with nature.

Basic Environmental Protection Policy
1. Offering products and technologies that contribute to global
environmental protection
2. Reduction of environmental burden throughout product lifecycles
3. Reduction of environmental burden in business activities
4. Compliance with laws, regulations, and standards
5. Establishment of environment management systems andcontinuous improvements of the systems
6. Improvement of employees’ environmental awareness andsocial contribution
7. Promotion of communication

Fuji Electric’s Environmental Vision 2050
We aim to achieve a “Low-Carbon Society,” “Recycling-Oriented Society,”and “Society in Harmony with Nature” by expanding use of Fuji Electric’s
innovative clean energy technology and energy-saving products.

Realize a Low-Carbon Society
Target a reduction of 80% or more in greenhouse gas emissions
across the supply chain

Realize a RecyclingOriented Society

Realize a Society inHarmony with Nature

Promote green supply chains and3R* activities to reduce
environmental impact to zeroAim for zero influence on theecosystem by corporate activities
contributing to biodiversity

Fiscal 2030 Target
Reducing Environmental Burden

Creating Environmental Value•R educe greenhouse gas emissions • R educe 50 million tons of CO2during production by 31%
emissions through products(Greenhouse gas emissions’ baseannually
year: Fiscal 2013)* Reduce, reuse, recycle

33 Fuji Electric Report 2019

Realization of a Low-Carbon Society—
Reduction of Society’s CO2 Emissions through Products
Reductions in CO2 Emissions through Products in Fiscal 2018

30,160,000 tons
By encouraging customers to use our clean energy facilities
and energy-saving products, we are able to reduce CO2 emissions from the use of our products. Fuji Electric calculates thecontributions to CO2 emissions reductions made over a fullyear of operation by all of the products it has shipped since
fiscal 2009 (excluding those that have reached the end of theiraverage life spans).
In fiscal 2018, the contribution to CO2 emissions reductions
from products was 30,160,000 tons. This contribution waslargely a result of sales of clean energy facilities in the power
and new energy business and of energy-saving equipment
such as inverters in the power electronics systems businessand IGBT modules in the electronic devices business. This
amount of reduction was equivalent to 2% of Japan’s total
greenhouse gas emissions in fiscal 2016 (approximately 1.3
billion tons).
Beginning with fiscal 2019, Fuji Electric will work toward
accomplishing the target for reductions to society’s CO2 emissions through products set in the Environmental Vision 2050
(50 million tons in fiscal 2030).

Reductions in CO2 Emissions through Products(1,000 t-CO2)

50,00030,16025,790

2018

2017

2030
(Target)(FY)

Net Sales and Reductions in CO2 Emissions throughProducts by Segment in Fiscal 2018¥914.9 billion
62.2
107
113.6
137.3

30,160thousand tons
8,870

29%

3,950

3%
13%

16,44055%900Segment

Major Contributing
Products

Power and New
EnergyClean energy
facilities

Food and Beverage
Vending machines
Distribution

Electronic Devices IGBT modules
546.6

–51.9

Net sales

Power Electronics Inverters, UPSs
Systems

Reductions to
CO2 emissions
throughproducts

Note: The contributions to CO2 emission reductions refers to CO2 emission reductions
from products shipped in and after fiscal 2009 that were in operation for a year.
Calculated based on the Ministry of Economy, Trade and Industry's Guideline forQuantifying Greenhouse Gas Emission Reduction Contribution

Products Contributing to Reductions to Society’s CO2 Emissions

Geothermal Power Generation
Contribution to reductions of 4 million tons of CO2 a year

Geothermal power is a form of renewable energy that is generated using steam and hot
water underground. Binary geothermal power generation employs new technologies thatmake it possible to generate geothermal power using low-temperature heat sources. These
technologies are put to use in the Takigami Binary Geothermal Power Plant, which is locatedat the foot of Mount Kuju in Oita Prefecture. Fuji Electric was contracted for procurement,
production, and construction activities pertaining to this power plant, which went onstream
in March 2017 boasting a generation capacity of 5,050 kW, among the largest in Japan.
The geothermal power generation plants Fuji Electric has delivered since 2009 have a
combined total generation capacity of 846 MW. The combined total CO2 emissions fromthese plants is 4 million tons less per year than would be emitted by standard thermal power
generation plants with the same generation capacity.

Case
ExampleMaterial Management
Initiatives

Case
ExampleTakigami Binary Geothermal Power Station

Annual Reductions to CO2 Emissions(1,000 t-CO2)

General-Purpose Inverters
Contribution to reductions of 1.2 million tons of
CO2 a year through energy savings

Inverters are used to control motor rotations in pumps, fans, and conveyance systems. With inverter control, the amount of electricity consumption
decreases in proportion to the cube of the motor rotations. Electric equipment using inverter control can therefore save 50% more energy comparedwith equipment not using inverters (damper control), assuming operation at
80% wind output.
In fiscal 2018, we shipped roughly 15,000 mega-type general-purpose
inverters (with a combined capacity of 100 kW), contributing to reductions of
1.2 million tons of CO2 a year.

Based on fiscal 2018 shipments ofmega-type general-purpose inverters

2,480
1,240

–1,240Pre-installation Post-installation

FRENIC-MEGA
general-purpose inverter

Note: Calculated under standard
operating conditions
50% decrease in electricity consumption when operating with 20%
reduction in wind output
CO2 coefficientsJapan: 0.496 kg-CO2
Overseas: 0.506 kg-CO2

Fuji Electric Report 201934

Realization of a Low-Carbon Society—
Reduction of Greenhouse Gas Emissions During Production
Total Greenhouse Gas Emissions from Production Activities

499,000 tons*

Total Greenhouse Gas Emissions from
Production Activities and Target

Emissions per unit ofproduction (tons/¥100 million)

Emissions (1,000 t-CO2)(down 7% from fiscal 2013)

As part of its efforts to contribute to the realization of a low-carbon society,Fuji Electric is working to reduce the greenhouse gases emitted during
production activities. When converted to a CO2 basis, total greenhouse gas
emissions in fiscal 2018 amounted to 499,000 tons, an increase of 15,000
tons and a reduction of 1 ton per ¥100 million worth of production in termsof emissions per unit of production compared with the previous year.
Of this, CO2 emissions came to 357,000 tons, an increase of 1,000
tons year on year. This outcome is largely a result of higher orders, andconsequently production of, power semiconductors and other offeringsin the electronic devices business and products such as energy-saving
equipment and systems in the power electronics systems business.
Energy conservation activities aimed at reducing CO2 emissions had
the benefit of lowering emissions by 8,000 tons on a Companywide
basis. Renewable energy usage is being promoted as one facet of these
activities. On this front, we installed a new solar power generation
system at Wuxi Fuji Electric FA Co., Ltd., of China. This system is supplying clean energy that accounts for approximately 20% of the electricity used to power the factory’s production activities.
Emissions of greenhouse gases other than CO2 totaled 142,000 tons,
up 14,000 tons year on year. This increase was primarily due to the bolstering of equipment to accommodate higher production levels in theelectronic devices business.
In fiscal 2019 and beyond, we will be accelerating initiatives for achieving the greenhouse gas emissions reduction target set for fiscal 2030. CO2
emission reduction initiatives will include tracking energy usage and installing LED lighting and high-efficiency air conditioners. As for greenhousegases other than CO2, we will target emission reductions by installingabatement apparatus and switching to alternative gases.

151

536
148

119

118

484

499

128

142
56

388

356

357

314

2013
Base year

2017

2018

2030
TargetNote: Emissions are calculated using actual or forecast electricity consumption
for each fiscal year (power coefficient for fiscal 2018: 0.496 kg-CO2e/kWh).

Prevention of Global Warming through Energy Savings in Production Activities
Suzuka Factory

The Suzuka Factory is our principal production base for power electronics system products,
and this factory is aggressively pursuing energy savings through three initiatives to help
prevent global warming.
The first initiative was the introduction of an energy usage monitoring system that canmonitor electricity usage conditions by piece of equipment, which has made it possible toimplement real-time energy conservation efforts. The second initiative was to improveenergy efficiency. Measures with this regard included the replacement of aged equipmentwith Fuji Electric inverters and high-efficiency air conditioners, which are effective in reducing the energy consumption of production equipment. The third initiative was to entrenchenergy conservation awareness among all employees. All employees at the Suzuka
Factory are taking part in energy conservation activities, such as regularly turning off
lights. These initiatives resulted in a 1% year-on-year reduction in total electricity consumption in fiscal 2018, despite the overall increase of 6% in total production hours,* to850,000 hours, that stemmed from higher production levels.
* Total production hours is the sum of all hours spent by all employees directly performing production processes.

35 Fuji Electric Report 2019

(FY)

CO2 Other greenhouse gases
Emissions per unit of production

Note: The power coefficient used for conversions is 0.496 kg-CO2e/kWh.

Case
Example–31%
370

Energy usage monitoring system

Realization of a Recycling-Oriented Society
Efficient Use of Water Resources
Companywide Water Usage in Fiscal 201813,478,000 tons

Japan: 7,503,000 tons
(Target: 7,297,000 tons)
Overseas: 5,974,000 tons
(Target: 5,901,000 tons)

Companywide Water Usage Volumes
and Recycling Rate
Water usage (1,000 tons)
8.8
7.8

As part of its efforts to efficiently use water resources, Fuji Electric is increasing
its water recycling rates with the goal of reducing total water usage.
In fiscal 2018, we failed to meet our water usage targets both in Japanand overseas due to higher production levels. However, the water recycling
rate rose by 3.4 percentage points year on year due to the recycling of anadditional 600,000 tons of water at the Malaysia Factory.
Going forward, we will endeavor to further reduce Companywide water
usage by raising water recycling rates at factories.

Waste Reduction
Ratio of Waste Sent to Landfills (Companywide)

1.6%

Japan: 0.6%
(Target: Less than 0.5%)
Overseas: 3.7%
(Target: Less than 7.0%)

Fuji Electric’s initiatives to reduce waste production volumes and the ratioof waste sent to landfills includes making lighter and more compact products and reducing defective products at the manufacturing stage.
On a Companywide basis, the ratio of waste sent to landfills in fiscal
2018 decreased 0.7 percentage point, to 1.6%. Overseas, this ratio was
3.7%, 3.3 percentage points lower than the target of 7.0%, due to achange in the sludge treatment method at the Malaysia Factory.
Looking ahead, Fuji Electric will continue striving to reduce theCompanywide ratio of waste sent to landfills below 1.0% by fiscal 2030.

Guided by the Fuji Electric Biodiversity Action Guidelines, the Company isadvancing biodiversity preservation activities through its social contribution
activities and through its business of supplying products that reduce air
pollution and other environmental impacts.
For example, the SOx scrubbers released in fiscal 2018 (see page 18)
help prevent air pollution by cleaning ship exhaust gas to remove morethan 98% of the pollutant sodium oxide (SOx) contained therein.

Case
Example13,478

13,165

12,523

6,444

5,288

5,974

6,721

7,235

7,503

2016

2017

2018

(FY)

Japan Overseas
Companywide water recycling rate

Amount and Ratio of Waste Sent to Landfills
Amount of waste sent to landfills (tons)

1,801

5.3

Ratio of waste sent to landfills (%)(Amount of waste sent to landfills /Total waste produced)

762
543
2.3

2016

2017

Amount of waste sent to landfills

1.6
2018

(FY)

Ratio of waste sent to landfills

Material Management
Initiatives

Realization of a Society inHarmony with Nature

Water recycling rate (%)
Recycled water /12.2
Water usage

Fuji Electric Biodiversity Action Guidelines
1. Reduce environmental impact through ourenergy and environment technologies, andcontribute to biodiversity
2. Minimize the impact of our business on
biodiversity and promote sustainable use
3. Work with society to actively promotebiodiversity action

Reduction of Amount of Waste Sent to Landfills
Malaysia Factory

The waste water produced during the manufacture of electronic devices is discharged intorivers after extracting the metal-containing sludge through treatment procedures. As recent
as fiscal 2016, the Malaysia Factory was burying this sludge, which was thus accounted for
directly in the amount of waste sent to landfills. As the Malaysia Factory was searching formethods of putting this sludge to better use, AKBK Sustainable Resource Management
Centre, a new waste recycling plant operated by a Japanese company, was established.
We were thus prompted to look into the possibility of recycling this sludge as cement, awaste treatment method that had not been used in Malaysia previously. We were able toadopt this treatment method, and recycling commenced when the AKBK Sustainable
Resource Management Centre started operation in fiscal 2017. As a result, the amount ofwaste sent to landfills at the Malaysia Factory in fiscal 2018 was approximately 70% lower
than in fiscal 2016.

AKBK Sustainable Resource Management
Centre (Malaysia)

Fuji Electric Report 201936

Corporate GovernanceFuji Electric is reinforcing its corporate governance toward the improvement of its managementtransparency and its oversight function.

Basic Policies
1. Protecting shareholder rights and ensuring their equal
treatment
2. Conducting appropriate collaboration with non-shareholder
stakeholders
3. Guaranteeing proper information disclosure and ensuringtransparency
4. Executing the duties of the Board of Directors
5. Engaging in dialogue with shareholders

To help realize our corporate philosophy, in which we pledge as
responsible corporate citizens in a global society to strengthen
our trust with communities, customers, and partners, Fuji
Electric is enhancing management transparency and oversightfunctions, and reinforcing corporate governance while pursuing
the following policies.

Corporate Governance Framework

Directors and Board of Directors

General Meeting of Shareholders
Appointment/
Dismissal

Fuji ElectricAppointment/
Dismissal

Board of Directors

Appointment/
Dismissal

Board of Auditors

Comprising 8 Directors(including 3 Outside
Directors)

Audit

Comprising 5 Auditors(including 3 Outside
Auditors)

Cooperation

Accounting
AuditorConsultation
Recommendations
Nomination andRemuneration
Committee

Oversight
ReportAuditors and Board of Auditors

Audit

The Board of Auditors inspects Fuji Electric’s
management and business execution.

Nomination and Remuneration
Committee

Executive Committee
Executive
Officers

President
Deliberation
ReportStanding
Auditors
Internal Auditing
Divisions

Committees(Fuji Electric Compliance
Promotion Committee, etc.)

The Executive Committee deliberates importantmatters and makes reports to enable monitoringof the status of management as a consulting
body for the president. The Executive
Committee is composed of Executive Officers
and is always attended by Standing Auditors.

Auditors

Accounting
AuditorExecutive Committee
President

Executive
Committee
Members
Internal Auditing
Divisions

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

37 Fuji Electric Report 2019

The Nomination and Remuneration Committee
ensures the transparency and objectivity of theprocess for the nomination and remuneration of
Directors and Auditors. The committee is composed of Standing and Outside Directors with amajority of Outside Directors, and the committee Chairman is an Outside Director. The committee began its activities in July 2019.

Executive Committee

Subsidiaries

Board ofDirectors

The Board of Directors conducts decision
making and oversight of the management ofFuji Electric and the execution of importantbusiness activities. The terms of Directors
have been set as one year in order to clarify
the management responsibilities of Directors
for each fiscal year and create a frameworkthat is conducive to flexible responses tooperating environment changes.

• Fuji Electric Compliance
Regulations• Fuji Electric Compliance
Program• Business Ethics
Whistle-Blowing System• Fuji Electric Risk Management
Rules• Fuji Electric Rules forPrevention of Insider Trading• Fuji Electric Group
Contingency Plan for
Emergency Situations• Auditor Liaison Committee

Executive Officers

Executive Officers conduct business executionfunctions and their terms have been set as one
year. The duties of each Executive Officer are
decided by a resolution of the Board of
Directors, thereby clarifying responsibilities andimproving the efficiency of business execution.

Outside Officers
Fuji Electric proactively appoints Outside Officers with a view tostrengthening the management supervisory function from an
objective perspective and maintaining the validity and appropriateness of business decisions. Based on the following independence criteria, Fuji Electric ensures that Outside Officers remain
independent of the Company, and notification has been submitted that these Outside Officers are Independent Directors /Auditors as required by domestic financial exchanges, including
the Tokyo Stock Exchange.
After their appointment, Outside Officers participate ininternal technology presentations and business site inspections

to deepen their understanding of Fuji Electric’s management.
In fiscal 2018, a business site inspection took place at Chiba
Factory. Outside Officers were given explanations of the factory
after which they toured theactual productions floors andengaged in discussions withfactory managers.

Tour of Chiba Factory

Outside Directors
NameToshihito Tamba

Naoomi Tachikawa

Yoshitsugu Hayashi

Status of Attendanceat Board of Directors
Meetings(Meetings Attended/
Meetings Held)

Main Activities (Fiscal 2018)

13/13

Mr. Tamba offered opinions as necessary on all areas of Fuji Electric’s management at the Board of
Directors meetings, including on the following matters, based on his professional standpoint and considerable insight as a manager of listed companies.
■ Formulation of a business plan taking into account changes in the market environment■ Appropriate ways to conduct investor relations (IR) activities

13/13

Mr. Tachikawa offered opinions as necessary on all areas of Fuji Electric’s management at the Board of
Directors meetings, including on the following matters, based on his professional standpoint and considerable insight as a manager of listed companies.
■ Management of progress for large-scale projects■ Necessity of paying attention to material procurement and human resources

10/13

Mr. Hayashi offered opinions as necessary on all areas of Fuji Electric’s management at the Board of
Directors meetings, including on the following matters, based on his professional standpoint and considerable insight as an environmental engineer.
■ Appropriate ways to carry out research and development■ Initiatives aimed at reducing Fuji Electric’s environmental footprint

Status of Attendance atBoard of Directors
Meetings
Status of Attendance atBoard of Auditors
Meetings(Meetings Attended/
Meetings Held)

Main Activities (Fiscal 2018)

Name

Yoshiki Sato

Akiko Kimura

Tetsuo Hiramatsu

13/13
7/8
13/13
8/8
13/13
8/8

Material Management
Initiatives

Outside Auditors

Mr. Sato confirmed and offered opinions as necessary at meetings of the Board of Directors concerning
agenda items and the status of Fuji Electric’s business activities based on his extensive experience andconsiderable insight as a manager at financial institutions. At meetings of the Board of Auditors, he confirmed and offered opinions on the legal compliance of the overall business activities of Fuji Electric.
Ms. Kimura confirmed and offered opinions as necessary at meetings of the Board of Directors concerning
agenda items and the status of Fuji Electric’s business activities based on her expert knowledge as an
attorney. At meetings of the Board of Auditors, she confirmed and offered opinions on the legal complianceof the overall business activities of Fuji Electric.
Mr. Hiramatsu confirmed and offered opinions as necessary at meetings of the Board of Directors concerning agenda items and the status of Fuji Electric’s business activities based on his extensive experience andconsiderable insight as a manager at financial institutions. At meetings of the Board of Auditors, he confirmed and offered opinions on the legal compliance of the overall business activities of Fuji Electric.

Independence Criteria for Outside Officers

The Company judges the applicable candidate to be fully independent from the Company when he/she does not fall under any of
the conditions listed below in addition to criteria of independence stipulated by domestic financial exchanges including the Tokyo
Stock Exchange.
(1) Major shareholder		(2) Major business partner
				
				
(3) Major lender, etc.		
				(4) Accounting auditor						(5) Donee							

A major shareholder of the Company (who owns 10% or more of the voting rights) or its executor of business.
A business partner (consultants such as lawyers, certified public accountants, and tax accountants, as well as consulting
firms such as law firms, audit firms, and tax firms) or a person executing its business whose transactions with the Company
exceed 2% of the annual consolidated net sales of the Company or the other entity in the past three fiscal years.
A financial institution, other major creditor, or a person executing the business of these institutions that is indispensable for
the Company’s funding and on which the Company depends to the extent that it is irreplaceable.
A certified public accountant who belongs to an auditing firm that serves as the accounting auditor of the Company or 		
employee, etc. of such auditing firm.
A person executing the business of an organization which receives a donation exceeding 10 million year per year that isgreater than 2% of its annual income from the Company for the past three fiscal years.
Fuji Electric Report 201938

Executive Remuneration
Fuji Electric has established a remuneration system and remuneration levels for Directors and Auditors that are deemed
appropriate for their respective duties and in accordance withshareholder mandates, giving due consideration to the aims of
securing and maintaining competent personnel and providing
incentives for the improvement of business performance.

Standing Directors 

Outside Directors and Auditors 

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

Remuneration for Outside Directors and Auditors is paid as apredetermined amount as Outside Directors and Auditors arecharged with the duty of supervising or auditing the executionof duties across Fuji Electric. Outside Directors and Auditors
may acquire stock in the Company at their own discretion.

Base Remuneration
Base remuneration is a predetermined amount that is paid
to executives according to their position. A portion of the baseremuneration is contributed to the director shareholding association to share the economic interests of shareholders and as
an incentive to make management aware of share value.
Performance-Linked Remuneration
Performance-linked remuneration is paid only in instancesin which dividends are paid to all shareholders from retained
earnings. The total amount of executive performance remuneration shall be within 1.0% of consolidated net income for the
fiscal year prior to the date of payment in order to make the linkwith consolidated results for each fiscal year more clearly.
Remuneration Paid to Directors and Auditors (Fiscal 2018)
Remuneration by Type (Millions of Yen)

Total Remuneration(Millions of Yen)

Base Remuneration

Performance-Linked
Remuneration

Directors (excluding Outside Directors)

365

240

125

5

Auditors (excluding Outside Auditors)

58

58

—

2

Outside Officers

50

50

—

6

Classification

Number of Recipients

Notes: The above amount is the amount of performance-linked remuneration to be paid to Directors, which was determined in June 2019.
The amount of performance-linked remuneration in fiscal 2017 was ¥115 million.

Internal Control System
With the aim of complying with laws and regulations, managing
the risk of loss, and securing the efficiency of the execution ofduties, the Fuji Electric Board of Directors determines basic
policies concerning the establishment of an internal control
system as stipulated in the Companies Act of Japan, and theCompany discloses those policies. Fuji Electric discloses

information on the implementation of its internal control system,
thereby taking steps to respond promptly and accurately to thedemands placed upon the Company by society. Such information includes descriptions of provisions for ensuring that Directors
and employees perform their duties in a manner that is compliant
with laws and the articles of incorporation.

Main Systems Based on the Internal Control System Compliance System (Please refer to page 42 for details.)
Based on systems for ensuring that Directors and employees
perform their duties in a manner that is compliant with laws
and the articles of incorporation, Fuji Electric has establishedand promotes a compliance system in order to secure thetransparency and soundness of business execution.

39 Fuji Electric Report 2019

Risk Management System (Please refer to page 44 for details.)
Based on regulations and other systems pertaining to managing the risk of loss, Fuji Electric has developed an appropriate
risk management system in order to manage business risks ina coordinated, systematic manner. In regard to specific crosssectional risks, the Company determines departments to put
in charge of each risk, thereby establishing a risk management system.

Audits by the Board of Auditors and Internal Audits
Audits by the Board of Auditors 
Auditors attend meetings of the Board of Directors and otherimportant meetings based on the audit policies and duties
assigned in accordance with the standards for audits put forth
by the Board of Auditors. Audits are performed by receiving
explanations on the status of operational execution from
Directors, reviewing documents pertaining to important resolutions, investigating the status of operations and assets at
major operating sites, and requesting reports on operations
from subsidiaries as necessary. In addition, Auditors pursue

increased coordination with the Accounting Auditor and withinternal auditing divisions. At the monthly meetings of the
Auditor Liaison Committee, Auditors share information withinternal auditing divisions as well as report on the results of
the internal audits for the previous fiscal year and the internal
audit plans for thecurrent fiscal year. Through activities such as these, we are
ensuring the effectiveness of audits across the Group.

Internal Audits Internal auditing divisions perform internal audits based oninternal audit standards and annual audit plans. These audits
look at areas such as organizational management, risk management, compliance, operational execution, and accounting
from the perspectives of legal compliance in business activities,
reliability of financial reporting, preservation of asset portfolios,
and operational effectiveness and efficiency. A total of 44 bases

were audited in fiscal 2018. No risks or inadequacies with thepotential to seriously impact management were discovered.
Information on auditing activities is shared between theinternal auditing divisions of the Company and its subsidiaries
in order to ensure the effectiveness of internal audits acrossthe Group.

Approach to Cross-Shareholdings
Fuji Electric holds shares in listed companies only when it determines that doing so is necessary from the standpoint of maintaining and strengthening business alliances and transactions
for business activities. The Company regularly conducts com-prehensive evaluations at meetings of the Board of Directors on
the risks and returns that result from holding such shares andsells off cross-shareholdings in cases when it determines that
there is no rationality for holding such shares.

Material Management
Initiatives

Fuji Electric Report 201940

List of Officers (As of July 1, 2019)
Directors

President and Chairman of
the Board of Directors

Michihiro Kitazawa

Elected Corporate Director

Outside Director

Outside Director

Outside Director

Kenzo Sugai

Toshihito Tamba

Naoomi Tachikawa

Yoshitsugu Hayashi

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

Professor, Institute of
Science and Technology
Research, Chubu University

Director

Director

Director

Michio Abe

Masatsugu Tomotaka

Junichi Arai

Standing Auditor

Standing Auditor

Outside Auditor

Outside Auditor

Outside Auditor

Yoshio Okuno

Junichi Matsumoto

Yoshiki Sato

Akiko Kimura

Tetsuo Hiramatsu

Chairman of the Board,
Asahi Mutual Life Insurance
Company
External Auditor, ADEKA
Corporation
Outside Director, FUJIKYUKO CO., LTD.
President, National
Federation of UNESCO
Associations in JAPANOf Counsel, Anderson Mori
& Tomotsune

President, NIPPON TOCHITATEMONO Co., Ltd.

Auditors

Executive Officers （2018年7月1日現在）
President

Michihiro Kitazawa

General Management

Executive Vice President

Kenzo Sugai

Assistant to the President, Sales Management

Michio Abe

In charge of Production & Procurement and Power Generation Business

Masatsugu Tomotaka

In charge of Power Electronics Systems Energy Business and Power Electronics Systems
Industry Business

Junichi Arai

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

Toru Housen

Corporate General Manager, Electronic Devices Business Group

Takeshi Kadoshima

General Manager, Human Resources and General Affairs OfficeKenji Goto

Deputy Corporate General Manager, Power Electronics Systems Energy Business Group

Yasuhiro Takahashi

Corporate General Manager, Food and Beverage Distribution Business Group

Susumu Shinmura

Corporate General Manager, Sales Group

Masahiro Morimoto

Corporate General Manager, Power Electronics Systems Energy Business Group

Shiro Kondo

Corporate General Manager, Corporate R&D Headquarters

Tadao Horie

Corporate General Manager, Power Generation Business Group

Masashi Kawano

Corporate General Manager, Production & Procurement Group

Hiroshi Tetsutani

Corporate General Manager, Power Electronics Systems Industry Business Group

Senior Managing Executive
Officers

Managing Executive Officers
Executive Officers

41 Fuji Electric Report 2019

ComplianceFuji Electric employs thorough measures to ensure compliance with laws and corporate ethics and always acts withthe highest ethical standards to achieve sustained corporate growth.

Basic Policies
We state in the Fuji Electric Code of Conduct that we shall“make global compliance a top priority,” and this has been
incorporated into our basic policy on compliance. Based uponthis policy, we have established the Fuji Electric Compliance

Regulations, which is a concrete guideline for compliance,
and we promote compliance through the Fuji Electric
Compliance Program and the Fuji Electric Business Ethics
Whistle-Blowing Systems.

Compliance Promotion System
The Fuji Electric Compliance Promotion Committee—headed bya representative director and composed of the managers (corporate general managers and general managers) responsible forregulating laws and/or acts, with Standing Auditors andoutside experts (attorneys) as observers—has jurisdiction overcompliance of Fuji Electric. With the goal of achieving full compliance with laws and social norms globally, the committee meets
twice each fiscal year to deliberate on compliance execution andplanning and reports the results of these deliberations to theBoard of Directors. Furthermore, in the event of a complianceinfraction, the committee has a system in place to take anynecessary measures after carrying out deliberations on conducting fact-finding investigations, taking corrective actions, taking
measures to prevent a recurrence, dealing with the infraction
internally, and internal and external disclosure.

Fuji Electric Compliance Regulations
Board of Directors
President and Chairman of the Board of Directors(Executive Committee)
Business Ethics Whistle-Blowing Systems
Business Ethics Helpline

Fuji Electric Compliance ProgramFuji Electric Compliance
Promotion Committee

Material Management
Initiatives■(reports from employees)

Partner Hotline■(reports from materials suppliers)

Note: Hotline contact points are in-house points
and external lawyers

Status of Compliance Promotion(1) Fuji Electric Compliance Program Fuji Electric has established the Fuji Electric Compliance
Program, which brings together four aspects (see numbers
1–4 below) of domestic, overseas laws (laws regarding anticorruption, fair competition, labor, human rights, productsafety, the environment, taxation, accounting and information
security, and export management as well as other areas) for
the Company and Group companies in Japan and overseas.
The Fuji Electric Compliance Promotion Committee
implements the program while continuously reviewing it andmaking revisions.
1. Establishment, revision, abolition, and dissemination ofinternal rules
2. Constant monitoring of status of compliance with laws andinternal rules
3. Auditing of status of compliance with respect to 1. and 2.
4. Compliance education regarding laws and internal rules

Compliance Education
Based on the Fuji Electric Compliance Program, Fuji Electric
promotes wide-ranging compliance education and instruction
through level-specific and job-specific group training ande-learning programs, as well as displaying posters internallyand distributing pamphlets.

Training for newly appointed
managers

Fuji Electric Report 201942

Examples of Training Conducted in Fiscal 2018
ParticipantsType and Subject of Training

Level-SpecificTraining

Newly appointed executives 27
Newly appointed managers 97
New employees 234

Classroom-based training on topics including the Fuji Electric compliance system andthe Fuji Electric Compliance Program

Training for All
Employees

All employees

e-learning program on the protection of personal information and other topics(2) Fuji Electric Business Ethics Whistle-Blowing Systems To prevent infractions of the aforementioned laws, regulations,and internal rules and ensure early detection, Fuji Electric has
introduced, and is operating, the Fuji Electric Business Ethics
Whistle-Blowing Systems. Under these systems, internal andexternal parties can report violations or suspected violations oflaws, regulations, or internal rules to Fuji Electric’s president via
the department responsible for compliance or through an external lawyer. These systems rigorously protect whistle-blowers byconcealing their identity and prohibiting them from being subject to disadvantageous treatment, retaliation, or discriminationon the grounds of whistle-blowing.
These systems are the Business Ethics Helpline, which handles notifications from our employees in Japan and overseas(including dispatch employees); and the Partner Hotline, whichhandles notifications from our suppliers about Fuji Electric’s materials procurement operations. The Business Ethics Helpline ispromoted among employees at all compliance training sessions
and through postings on the Company’s intranet and on internalbulletin boards. Awareness of the Partner Hotline among business
partners is fostered through postings on the Company’s website
and at explanatory forums. Fuji Electric obtains reports of whistleblowing cases filed every year and takes necessary measures—such as conducting fact-finding investigations, taking corrective
actions, and taking
measures to prevent a recurrence—aimed at resolving issues
raised by whistle-blowers.

Framework of the Business Ethics Whistle-Blowing Systems
Business Ethics Whistle-Blowing Systems
Partner Hotline

Business Ethics Helpline

Whistle-blower (external)

Whistle-blower (internal)

External lawyer

General managerof the legal officeInform details ofwhistle-blowing

Report of whistle-blowing

President
Reportresults

Determine the department to deal withthe whistle-blowing case (take into
account protection of the whistle-blower)

Department to deal withthe whistle-blowing case
Report results
Report results

External lawyer
Feedback (except forcases of anonymous
whistle-blowing)

General manager of thelegal office
Feedback (except for cases ofanonymous whistle-blowing)

Whistle-blower(Internal/External)

Results of Compliance Promotion
As a result of implementing the Fuji Electric Compliance Program
and the Fuji Electric Business Ethics Whistle-Blowing Systems,
there were no compliance infractions with the potential to seriously impact management in fiscal 2018.
We are enhancing prevention of the violation of competition
laws by establishing as rules the regulations set forth in the
Antimonopoly Act Compliance Manual, the Foreign Competition
Law Compliance Manual, and other regulations, as well as daily
monitoring through confirmation of quotations and estimates via
an extensive information management system and thoroughrecord-keeping. In addition, auditing divisions perform audits inaccordance with auditing guidelines and extensive level-specificand job-specific training is conducted.
As a result of these initiatives, there were no serious problems that warranted disclosure in fiscal 2018.
In regard to the prevention of corruption, the Fuji Electric
Code of Conduct and a directive on the prevention of

43 Fuji Electric Report 2019

corruption established a rule that no employee is to offer or
receive bribes to or from public- or private-sector officials in any
country or region. Prevention of corruption is reinforced throughthorough daily monitoring, auditing, and training. Stricter laws
and regulations pertaining to corruption are being instituted inSoutheast Asia and other regions. Fuji Electric is responding tothis trend by constantly monitoring its operations through coordination with law firms and reflecting the new laws and regulations in its rules and education when necessary.
As a result of these initiatives, there were no serious problems that warranted disclosure in fiscal 2018.

Risk Management

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

Basic Policies
Based on the Fuji Electric Risk Management Rules, theCompany manages risk in a coordinated, systematic manner.
We will practice appropriate management and counter various
risks that could affect the Company’s management in order toprevent risks from materializing (crisis situations), thereby minimizing the impact on management in the event that risksmaterialize.

Types of Risk and Risk Management System
Risk Classification System

Risk Management System

Fuji Electric divides risks into categories and conducts risk
management optimized for each category.

Fuji Electric’s business divisions and affiliate companies are
responsible for the management of risk related to their businessactivities as part of their business responsibilities, developing
appropriate risk management systems and implementing risk
countermeasures.
Additionally, significant risks, such as business plans andlarge-scale investments, are reported at the Executive
Committee as appropriate, thereby facilitating the sharing of
information.

External Risks

Business Risks

Risks related tothe external
environment

Risks related to business activities

Operational
Risks

CommonRisks• Natural disasters

and accidents

Risks related topolicies andstrategies

Risks related tobusiness
processes

Risks related tobusiness
activities

others• Management• Human rights

environment• Corporate
governance• Partnering andwithdrawal

Quality, cost,and deadlines
for all aspectsof businesssuch as orders,
production,
shipment andservicesothersothersothers•A ttacks fromoutsidestrategy•B usinessand labor
practices•C ompliance

Board ofDirectors

Audit

Board ofAuditors

Oversight
ReportExecutive Committee

systems

Internal Auditing
Divisions

Report• Information

Report• Environmental

pollution

Accounting Auditor

Cooperation

Each Group

Material Management
Initiatives

Strategic
Risks• Economic trends

Audit

ReportBusiness Divisions, Branches,
Factories, Subsidiaries

Risk Management Process
Fuji Electric implements an annual risk management process
and revises it continuously. When annual budgets are formulated, business divisions and affiliate companies understandand evaluate risks related to their business activities. Policies
and countermeasures in response to risks (aversion, mitigation,
relocation, retention and so forth) are considered based on theirimpact on management and frequency of occurrence, a person
responsible for executing the policies and countermeasures isdesignated, and the policies and countermeasures are implemented. Mid-year progress checks are conducted at the end of
the second quarter of the fiscal year, and risk countermeasures
are improved and implemented.

Annual Risk Management Process

Plan
Understand andevaluate risks

ActionDo

Improvement andimplementationof risk countermeasures

Address risks
Consider policies
and countermeasures

Check
Mid-yearprogress check• Results of education drills• Organizational changes,
personnel reassignments• Revision of laws,
regulations, etc.
• Apply experiences ofaddressing risks

Audits by Auditing Divisions(Management system and operational status)

Fuji Electric Report 201944

Strengthening of Business Continuity Capabilities
In order to uphold its social responsibilities as a company, Fuji
Electric aims to continue core operations even if unexpected
events such as natural disasters and accidents occur by providing a stable supply of high performance, high-quality products and services required by our customers.

Fuji Electric received Resilience certification under
the program established by the Cabinet Secretariat’s
National Resilience Promotion Office in recognitionof active efforts to ensure business continuity.

Fire Safety and Disaster-Preparedness Initiatives Based on the Disaster Prevention and Procedural Manual, all of
Fuji Electric’s bases have developed disaster-response systems
and have put in place thorough measures to ensure thatstructures and facilities are earthquake resistant, stockpile
emergency goods, and conduct regular drills, among othermeasures.

Business Continuity Initiatives 

Response to Natural Disasters in Fiscal 2018

In addition to fire safety and disaster-preparedness initiatives, Fuji
Electric has formulated a business continuity plan (BCP) at thehead office, which acts as a command center during disasters,
and at factories that house a large number of key management
resources. We have also established Companywide BCPs for
procurement sections, which manage the supply chain, and for
IT sections, which manage the information systems.
In fiscal 2018, we once again expanded the range of products covered under the BCP. In addition, we conducted simulation drills based on large-scale earthquake and explosion
scenarios targeting business supervisors and base managers,
while all employees took part in safety confirmation drills. Goingforward, we will continue to expand the range of products
covered under the BCP while
striving to raise awareness ofand make ongoing improvements to it, thereby strengthening business continuity
capabilities.

In fiscal 2018, Japan was struck by frequent natural disasters,
including heavy rains in west Japan, an earthquake in the
Kansai region, and the 2018 Hokkaido Eastern Iburi earthquake. Fuji Electric extends its condolences to those impacted
by these disasters.
No damages occurred to employees or physical assets at
Fuji Electric affiliates or bases and no significant impacts to production were seen. We responded to these disasters throughcoordination between the head office crisis response division,
procurement management divisions, customer-related divisions,and business divisions based on predetermined disaster
response systems and procedures.
In response to the widespread power outages that followed
the Hokkaido earthquake, we were able to avoid any significant
confusion as a result of our efforts to swiftly confirm the safety of
employees and the impact on customers. Taking the lessons
learned through these disasters to heart, we installed emergency
power generators at various operational sites.

Simulation drills in response to alarge-scale earthquake

Information Security
Implementation of Security Measures 
To protect confidential and personal information properly,
Fuji Electric has formulated and implemented a policy andregulations related to information security with consideration
for the laws of relevant countries. In addition, information management systems are put in place at Group companies andsystems have been instituted to manage access to operationalsites and to information, among other information security
measures. Meanwhile, we endeavor to prevent information
leaks while strengthening information security by instituting
annual training programs for employees and conducting
inspections and implementing improvements through effective

management and audits of workplaces.
Fuji Electric has developed a countermeasure system andestablished a computer security incident response team
(CSIRT) and a security operation center (SOC) to handle evermore diversified cyber security risks, through which we monitor for attacks and quickly gain control in the event of attacks.
We also take ongoing steps to improve our ability to respondto the constant emergence of new threats through the reinforcement of our defense and detection systems and throughcyber training.

External Certification Related to Information Security Companies that handle customers’ confidential and personal
information and require high-level information security management have acquired external certification. As of April 1, 2019, a
total of five departments at three Group companies have

45 Fuji Electric Report 2019acquired information security management system (ISMS) certification. In addition, Fuji Electric Co., Ltd. and four subsidiaries
have acquired Privacy Mark certification.

Social Outreach (Local Communities)

Our basic stance toward the communities surrounding our operating sites is to utilize the human resources and technologies developed through our business to build stronger relationships and foster ties by contributing to the resolutionof global social and environmental issues. To this end, we take part in various initiatives to help further the development
and energization of communities.

Relationship Building with Communities
Environmental Preservation 
Fuji Electric conducts tree planting, thinning, tree cutting, andother forest preservation activities centered on the communities
surrounding its operating sites in Japan and overseas. These
activities are in part based on the recognition that forests help
absorb CO2 and thereby prevent global warming.
The Company is also engaged in various other environmental preservation activities, including biodiversity conservation
activities that take advantage of forests on factory sites.
Employees performing forestry work (Fuji Electric Meter Co., Ltd.)

Major Initiatives in Fiscal 2018■

Forest restoration project (Azumino City, Nagano Prefecture)■Development of Musashino no Mori (Tokyo Factory)Musashino no Mori (Tokyo Factory)

Promotion of Youth Development 

Material Management
Initiatives

Fuji Electric holds science classes for elementary school students at major factories in Japan. In these classes, we aim tocommunicate to students the wonders of science and technology and the importance of manufacturing and to teach them
about the social contributions made through these areas.
In addition to classes for children, we also conduct a private-sector corporate training program for teachers as one
facet of our efforts to promote communication between companies and educators. This program is designed to help teachers better understand the appeal of science and the importanceof manufacturing while providing them with information on thelatest technological trends and other topics. Participants havebeen incorporating this information into their classes.

Science class (Kawasaki Factory)

Major Initiatives in Fiscal 2018■■■

 cience classes for elementary school students
S(at 10 factories in Japan)
 rivate-sector corporate training for teachers
P(Board of Education of Hino City, Tokyo)

Private-sector corporate training for teachers(Hino City, Tokyo)

 onations of educational supplies to Darma Persada University
D(Indonesia)

Supporting Disaster Recovery and Reconstruction Efforts Fuji Electric provides reconstruction support to areas impacted
by natural disasters in Japan and overseas.
For example, the Company donated to assist the victims of
the heavy rains that struck west Japan in July 2018 and tosupport reconstruction in the three prefectures that were mostseriously impacted (Hiroshima, Okayama, and Ehime).
The Company and Group companies also made donations
to support reconstruction after the 2018 Hokkaido Eastern
Iburi earthquake.

Fuji Electric Report 201946

Consolidated Financial and Non-Financial Highlights

Financial Highlights
Fiscal Year

Operating Results
Net sales
Japan
Overseas
Operating income
Net income attributable to owners of parent
R&D and Capital Investment
R&D expenditures
Plant and equipment investment*2
Depreciation and amortization*3
Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flow
Cash flows from financing activities
Financial Position
Total assets*4
Total net assets
Shareholders’ equity
Net interest-bearing debt
Interest-bearing debt
Financial Indicators
Ratio of operating income to net sales (%)
ROE (Return on equity) (%)
ROA (Return on assets) (%)*4
Equity ratio (%)*4
Net debt-equity ratio (times)*5
Debt-equity ratio (times)*6
Per Share Data*7
Net income
Net assets
Cash dividends
Dividend payout ratio (%)

2010

2011

2012

2013

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

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

745,781
567,314
178,466
21,992
26,368759,911582,223
177,688
33,136
19,58232,56827,22327,94532,24724,98929,75531,16031,771
31,05432,02926,91630,84953,85384,241138,094（93,468）

28,314（13,489）
14,825（32,592）

55,342（24,286）
31,055（56,827）

53,651（9,649）44,002（50,569）

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

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

810,774
251,225
227,181200,340
233,753

1.7
9.0
1.8
19.3
1.4
2.0

2.7
7.4
1.5
20.6
1.4
1.8

2.9
14.7
3.4
25.4
1.1
1.3

4.4
9.3
2.5
28.0
0.9
1.0

21.14
1,087.00
20.00
18.9

16.52
1,144.55
20.00
24.2

36.90
1,361.45
25.00
13.6

27.41
1,589.80
35.00
25.5

2010

2011

2012

2013

24,56218,002
6,560

24,973
17,933
7,040

24,956
18,271
6,685

25,52418,022
7,502

59.1

54.0

50.2

53.6

130

233

392

601

Non-Financial Highlights
Fiscal Year

Employees (Headcount)Japan
Overseas
Total greenhouse gas emissions from 		
production activities (10,000 t-CO2)
Reductions in CO2 emissions through 		
products (10,000 t-CO2)*8*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, 2019.
*2 Plant and equipment investment is the total of investment in tangible fixed assets, including acquisition amounts for lease contracts.
*3 Depreciation and amortization expense is the total of the depreciation of tangible fixed assets and amortization of intangible assets.
*4	Effective April 1, 2018, the Company has 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 shareholders' equity.
*6 Debt-equity ratio is the ratio of interest-bearing debt to shareholders' equity.

47 Fuji Electric Report 2019

Millions of yen
2018

Thousands of
U.S. dollars*1

2018

2014

2015

2016

2017

810,678605,763
204,915
39,31627,978813,550
597,757
215,793
45,00630,644

837,765
632,723
205,042
44,70940,978893,451
674,744
218,707
55,962
37,763914,915
682,503
232,41259,97240,267

8,317,414
6,204,573
2,112,841
545,203
366,073

35,02329,041
33,61535,94927,65029,72334,91027,14929,44535,62026,46530,151

33,66943,33830,906

306,087
393,985
280,965

51,459（22,750）
28,708（33,828）

48,450（19,410）29,040（31,566）

58,185
9,748
67,934（56,083）

53,146（14,550）
38,596（46,887）

54,949（21,448）
33,501（38,174）

499,544(194,985)
304,559(347,037)

904,522319,636
290,339
194,579
226,474

845,378
260,980
230,399
189,374
220,213886,663
323,863291,215
141,578
183,465914,744366,546
330,635
130,177
163,507952,659
392,061
352,921
124,850
153,985

8,660,545
3,564,195
3,208,381
1,135,008
1,399,870

4.8
10.8
3.3
32.1
0.7
0.8

5.5
11.8
3.5
27.3
0.8
1.0

5.3
15.7
4.7
32.8
0.5
0.6

6.3
12.1
4.2
36.1
0.4
0.5

6.6
11.8
4.3
37.0
0.4
0.4

—
—
—
—
—
—

39.16
2,031.95
45.00
23.0

42.90
1,612.60
50.00
23.3

57.36
2,038.40
55.00
19.2

264.342,314.50
70.00
26.5

281.892,470.65
80.00
28.4

2.563
22.46
0.727
28.4

2014

2015

2016

2017

2018

25,74017,814
7,926

26,50817,635
8,873

26,503
17,716
8,787

27,00917,7049,305

27,416
17,647
9,769

—
—
—

53.8

51.9

46.7

48.4

49.9

—

1,043

1,598

2,230

2,579

3,016

—

U.S. dollars*1

2018
Corporate Information*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, 2010.
	When the interim dividend of ¥8 per share for the fiscal year ended March 31, 2019, is recalculated to take into account the one-for-five reverse stock split, the dividend per share is¥40. Therefore, the dividend per share for the fiscal year ended March 31, 2019, is equivalent to ¥80, including the interim dividend.
Dividend per share has been adjusted retrospectively to reflect the impact of the reverse stock split for all periods presented.
*8	The contributions to CO2 emission reductions refers to CO2 emission reductions from products shipped in and after fiscal 2010 that were in operation for a year.
Calculated based on the Ministry of Economy, Trade and Industry's Guideline for Quantifying Greenhouse Gas Emission Reduction Contribution.

Fuji Electric Report 201948

Corporate Data

Company Information (As of March 31, 2019)
Company Name
Established
Head Office
Head Office Business Address
Capital Stock
Employees (Consolidated)
Net Sales (Consolidated)
Stock Code

FUJI ELECTRIC CO., LTD.
August 29, 1923
1-1, Tanabeshinden, Kawasaki-ku, Kawasaki-shi, Kanagawa 210-9530, Japan
Gate City Ohsaki, East Tower, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan¥47.6 billion
27,416 (Domestic 17,647, Overseas 9,769)¥914.9 billion (Year ended March 31, 2019)
6504

Stock Information (As of March 31, 2019)
Issued and Outstanding Shares
Major Shareholders

149,296,991     Number of Shareholders

36,564

Number of shares(1,000s)

Voting rights(%)

Japan Trustee Services Bank, Ltd. (Trust Account)

14,072

9.85

The Master Trust Bank of Japan, Ltd. (Trust Account)

13,4499.42

FUJITSU LIMITED

4,066

2.85

Asahi Mutual Life Insurance Company

3,955

2.77

FANUC CORPORATION

2,684

1.88

Japan Trustee Services Bank, Ltd. (Trust Account 5)

2,545

1.78

Japan Trustee Services Bank, Ltd. (Trust Account 7)

2,414

1.69

Mizuho Bank, Ltd.

2,250

1.58

FURUKAWA CO., LTD.

2,205

1.54

JP MORGAN CHASE BANK 385151

1,944

1.36

Shareholders’ names

Notes: 1. Treasury stock of 6,451,315 shares is excluded from the above list of top 10 shareholders.
		 2. The ratio of shareholding is calculated by deducting the number of treasury stock from the total number of shares
outstanding based on the provisions of the Ordinance for Enforcement of the Companies Act.

Share Distribution by Shareholder Type
Number ofshareholders

Type

Number of shares

Holding(%)

Financial institutions / securities firms

156

64,808,745

43.41

Other domestic corporations

466

14,100,181

9.45

Foreign corporations

627

46,271,318

30.99

Individuals and others

35,315

24,116,747

16.15

Total

36,564

149,296,991

100.00Note: “Individuals and others” includes treasury stock.

Share Price and Trading Volume Fluctuations (Tokyo Stock Exchange)
(Yen)
5,000

4,000

3,000

(Million of shares)
300
200
100
0

Share Price

4

5

6

7

8
2018

9

10

11

12

1

2
2019

3

(Month)Trading Volume

Note: Effective October 1, 2018, the Company conducted a one-for-five reverse stock split pertaining to shares of common
stock. Share price and trading figures have been restated to reflect this stock split.

49 Fuji Electric Report 2019

History
Company

Technology

1923

Fuji Electric Manufacturing Co., Ltd., established	Established as a capital and technology alliance
between Japan Furukawa Electric Co., Ltd.,and German Siemens AG. The result was acompany with characteristics inherited fromindustry in both countries

1920

1924

Began manufacturing electric motors
1925

Began transformer production
1927

Began electric fan production

1925

1936

Began operation of the
Kawasaki Factory

Built first hydraulic turbine,
4,850 HP Francis Turbine

1942

1937

Began watt-hour meter production

Began operation of the Matsumoto FactoryFrancis Turbine

1943

Began operation of the
Fukiage and Toyoda factories
1944

Company emblem,

Began operation of the Mie Factory “FS” mark

1950

1954

Began operation of the Chiba Factory

Began ultra-compact magnetic
switch production

1968

1959

1961

Merged with Kawasaki Denki Seizo Co., Ltd.,and commenced operations at the Kobe andSuzuka factories

Began manufacturing silicon diodes

1973

1971

Ultra-compact magnetic
switch production

1969

The first
vending machines

Began production of vending machines

Began operation of the Otawara Factory

Began manufacturing hybrid ICs
1976

Began manufacturing
general-purpose inverters
1984

Changed company name to Fuji Electric Co., Ltd.

1980

1991

Began operation of the Yamanashi Factory

General-purpose inverters

Released the programmable
logic controller “MICREX-F Series”
1987

Developed IGBT module

2002

Introduced Company
symbol mark
2003

1985

1991

Developed 2.5-inch magnetic disks
Symbol mark1996

Won order for IGBT main conversion
devices used in electric railways(The world’s first large-capacity flat IGBT)

Changed company name to Fuji Electric Holdings Co.,
Ltd., owing to shift to pure holding company system
2008

2011

Changed company name to Fuji Electric Co., Ltd.
2014

Created new corporate brand emblem for products

1998

Flat IGBT

Delivered 100 kW phosphoric acid fuel cell

2010

2010

Developed next-generation
SiC module power semiconductor
2012

Developed inverter equipped with
next-generation power semiconductor
SiC-SBD, a first in Japan

Corporate Information

Fuji Electric FA Components & Systems Co., Ltd.,
merged operations with Schneider ElectricJapan Ltd.
(Power distribution and control equipment joint
venture)SiC module
Inverters equipped withpower semiconductor
SiC-SBD

2014
EmblemLaunched power electronics equippedwith SiC power semiconductors
2015Power conditioning
systems for high-capacity
mega solar use

Launched steam-generation heat pumps
2018

Began manufacturing exhaustgas cleaning systems for ships

Exhaust gas
cleaning systems
for ships

Fuji Electric Report 201950

Corporate Data

Global Network(As of July 1, 2019)♳ Hokkaido Division♴ Hokkaido Fuji Electric Co., Ltd.

■■■■

㉓ Hokuriku Division
Kanazawa Branch㉔ Hakko Electronics Co., Ltd.

■■♵ Fuji Electric Tsugaru Semiconductor Co., Ltd.
♶ Tohoku Division㉚ Kansai Division㉛ Hoei Denki Co., Ltd.
㉜ Kobe Factory

■■
■■

■
■

■
■
■ ■
■■
■■
■
■
■ ■■
■■
■
■ ■ ■■
■ ■
■ ■ ■
■
■
■
■
■
■
■
■
■
■ ■
■
Chugoku■
Division■ ■■5 Kawasaki Factory■■■■
6 Chiba Factory■■■■
Kyushu Division■
7 Tsukuba Factory■■■
Shikoku Division■■■
8 Fukiage Factory■■
9 Otawara Factory⓾ Chichibu Fuji Co., Ltd.
⓫ Ibaraki Fuji Co., Ltd.
⓬ Facility Technology Center⓱ Chubu Division
Toyota Branch⓲ F uji Electric FA Service Co., Ltd.
⓳ Mie Factory⓴ Suzuka Factory㉑ Mie Fuji Co., Ltd.
㉒ Hoei Plastics Co., Ltd.

㉕ Matsumoto Factory㉖ Yamanashi Factory㉗ Fuji Electric Meter Co., Ltd.
㉘ Fuji Electric Power Semiconductor Co., Ltd.
㉙ Shinshu Fuji Electric Co., Ltd.

■ Okinawa■ Okinawa Division

51 Fuji Electric Report 2019

⓭ Fuji Electric F-Tech Co., Ltd.
⓮ East Kanto Branch⓯ North Kanto Branch⓰	Fuji Furukawa Engineering& Construction Co., Ltd.

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

Europe

Americas

1 Fuji Electric Europe GmbH

⓾ Fuji Electric Corp. of America■❷ Switzerland Branch⓫ Virginia Factory*●❸ U.K. Branch⓬ Chicago Branch❹ France Branch⓭ Santa Ana Branch●❺ Italy Branch⓮ Fremont Branch●⓯ Reliable Turbine Services LLC■❻ Spain Branch⓰ Fuji SEMEC Inc.*■

7 Fuji N2telligence GmbH
8 Fuji Electric France S.A.S.*
9 Middle East Branch

❸
●

■■
●
❷
■●
❹ ●
❺
❻
●

⓮

■

⓭
●

⓬
●

■
■
⓫
●

■

⓴
●
⓳
●

■
■

⓲
●

■

■
■ ■

●

■

●

● ●

■■

⓱ Fuji Electric India Private Ltd.
⓲ India Factory*⓳ Ahmedabad BranchSoutheast Asia

㉕ Fuji Electric (Thailand) Co., Ltd.
㉖ Fuji Electric Manufacturing(Thailand) Co., Ltd.*㉗ Fuji Tusco Co., Ltd.*㉑ Bangalore Branch㉘ Fuji Electric (Malaysia) Sdn. Bhd.*㉒ Chennai Branch㉙ Fuji Electric Sales Malaysia Sdn. Bhd.

㉓ Kolkata Branch㉚ Fuji Electric Asia Pacific Pte. Ltd.
㉛ Fuji SMBE Pte. Ltd.*㉜ PT Fuji Electric Indonesia㉝ P.T. Fuji Metec Semarang*㉞ Fuji Electric Vietnam Co., Ltd.
㉟ Fuji CAC Joint Stock Company㊱ Fuji Electric Philippines, Inc.*㊲ Fuji Electric Sales Philippines Inc.
㊳ Fuji Electric Co., Ltd.
(Myanmar Branch Office)㊴ Rep. Office of Fuji Electric Co., Ltd.

Affiliated companies
Overseas offices* Having manufacturing capabilities■■(in Cambodia)㊵ Fuji Electric Co., Ltd.
Construction Representative Office
Indonesia㊶ Fuji Electric (Zhuhai) Co., Ltd.*㊷ Fuji Electric (Shenzhen) Co., Ltd.*㊸ Fuji Electric FA (Asia) Co., Ltd.
㊹ Fuji Electric Hong Kong Co., Ltd.
㊺ Hoei Hong Kong Co., Ltd.
㊻ Fuji Electric (Changshu) Co., Ltd.*㊼ Wuxi Fuji Electric FA Co., Ltd.*㊽ Fuji Electric (Hangzhou) Software Co., Ltd.

Corporate Information⓴ Delhi Branch㉔ Fuji Gemco Private Limited*

■
■■■
■

China / East Asia
■ ■■South Asia

■■

■
■
●

■■

■
■

■

●

■

■

■●
●

㊾ Fuji Electric (China) Co., Ltd.
㊿ West China Branch South China Branch
 North China BranchS hanghai Electric Fuji Electric PowerTechnology (Wuxi) Co., Ltd.*F uji Electric Dalian Co., Ltd.*F uji Electric Motor (Dalian) Co., Ltd.*D alian Fuji Bingshan Vending
Machine Co., Ltd.* Dalian Fuji Bingshan Control Systems Co., Ltd.
D alian Fuji Bingshan Vending
Machine Sales Co., Ltd.
 Fuji Electric Taiwan Co., Ltd.
 Fuji Electric Korea Co., Ltd.
 Beijing Rep. OfficeFuji Electric Report 201952

Fuji Electric Report 2 019

Care for the Environment

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

00A9-E-0002a Printed in Japan 2019.8