Fuji Electric : Presentation Material with script

Hello everyone, I am Asano, in charge of the Food & Beverage Distribution Business Group. I will now begin the presentation.

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This slide gives the business overview.

The Food & Beverage Distribution Business Group operates in two areas: Vending Machines and Store Distribution.

In vending machines, Fuji Electric has the top market share in Japan. Our business is primarily with beverage manufacturers, and we are shifting from traditional vending machines to high-value-added vending machines. Overseas, our main markets are China and Thailand in Southeast Asia.

In Store Distribution, we cater to major domestic convenience store operators, offering a wide range of equipment that includes showcases, counter fixtures, and automatic change dispensers.

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This slide outlines the strengths of our business.

In the domestic vending machine business, Fuji Electric has the No. 1 market share for both beverage vending machines and food/goods vending machines.

Our greatest strengths lie in industry-leading technologies for "freezing and heating," "conveyance," "durability," and "waterproofing," as well as the trust we have built up over half a century of operations.

Approximately half of the vending machines currently installed in the market were manufactured by Fuji Electric, which allows the Company to secure stable replacement demand.

Overseas, we hold the top market share in China and Thailand, backed by made-in-Japan quality assurance technologies and a robust service network.

In Store Distribution, we hold the No. 1 market share for showcases for domestic convenience stores and the No. 2 market share for automatic change dispensers. Fuji Electric has a wide range of technologies, such as "refrigeration/freezing," "airflow control," and "finely tuned conveyance," supported by a 24/7 service network, another of our strengths.

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Here is a review of the previous medium-term management plan.

Starting in FY2018, earnings have considerably deteriorated in the Food & Beverage Distribution Business Group, owing in part to the impact of COVID-19 in FY2020. We revised our strategies significantly to deal with the uncertainty of when the pandemic would end and a recovery would start.

We shifted our focus from quantity to quality, emphasizing profitability while optimizing personnel, restructuring manufacturing bases, and raising prices to reflect the value of products. By FY2021, we returned to profitability and continued to advance high-value- added pricing strategies and reduce costs. As a result, in FY2023, our group achieved growth to net sales of ¥107.3 billion, operating profit of ¥8.8 billion, and an operating profit ratio of 8.2%.

Compared to the initial medium-term management plan, we did not reach the original target for net sales, but we met our targets for operating profit and the operating profit ratio, and achieved record-high profits for the Food & Beverage Distribution Business Group.

Challenges include further strengthening profitability and expanding the sales. We aim to address these issues in the next medium-term management plan.

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Next, I will present an overview of the FY2026 Medium-Term Management Plan for the Food & Beverage Distribution Segment.

We aim to further improve earnings power and reconstruct the operating foundation while eyeing 2030. We have positioned domestic vending machines and store distribution as core fields, and will work to enhance profitability further.

We will promote higher value added in our products, pricing strategies, and cost reductions. Additionally, as part of building the business foundation for 2030, our group will focus on growth areas such as digital transformation application services, new distribution fields like the restaurant and beverage industry, and global markets.

Fuji Electric will also strengthen the development of next-generation products. To achieve this, we will enhance our manufacturing capabilities, promote partnership strategies, and invest in growth.

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This one shows the business portfolio.

Through structural enhancements, our high market shares in the domestic vending machine and store distribution businesses have facilitated the generation of profit. We will nurture these businesses while shifting management resources from these areas to the growth sectors on the top left of the grid.

We aim to expand the new distribution, DX, and overseas fields with an eye on 2030.

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