FUJI ELECTRIC CO., LTD Hello everyone, I am Kawano from the Energy Business Group.
I will now explain the FY2026 Medium-Term Management Plan for the Energy Business Group.
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For today's presentation,
I will first provide an overview of the business. Next, I will review the FY2023 Medium- Term Management Plan, followed lastly by an explanation of the FY2026 Medium-Term Management Plan.
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This slide is an overview of the Energy Business Group. In the second half of last year, we integrated operations of power generation. We now operate in four business areas, offering products that contribute to the stable, optimal, and reliable supply of clean energy.
Sales in the previous fiscal year totaled ¥342.8 billion, with approximately 35% of sales from overseas. Our main customers are in a wide range of sectors, including electric power companies, public utilities, railway companies, general industry, data centers, and semiconductor manufacturers. For ED&C Components related products, our customers include machinery manufacturers and power distribution equipment manufacturers.
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This slide explains the strengths of our business.
Strengths in the Power Generation Business are derived from our extensive track record in deliveries and advanced engineering capabilities.
We hold the No. 1 global share in geothermal power generation and maintain a leading share of the domestic market for hydropower.
In the Energy Management Business, we have a long track record in deliveries and advanced power grid stabilization and control technologies.
This business includes products like PCS and peripheral electrical equipment, as well as large-capacity rectifiers, where we a leading group in terms of global market share.
The Power Supply and Facility Systems Business is capable of providing complete bundles of substation equipment and UPSs.
The business has a leading share of the domestic market for related products used in data centers.
In the ED&C Components Business, our strengths are high quality and a wide product lineup. It has the No. 1 and No. 2 domestic market shares for magnetic switches and hardwire circuit breakers, respectively.
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Next, I will review the FY2023 Medium-Term Management Plan.
The chart here shows trends in net sales and operating profit since FY2018. Fuji Electric exceeded both net sales and operating profit targets in the FY2023 Medium-Term Management Plan, mainly due to robust capital investment at domestic and overseas internet data center (IDC) and semiconductor-related customers.
Our achievements include building relationships with internet data center and semiconductor-related customers that have resulted in an inflow of orders. We anticipate continued growth in orders from these customers.
At our domestic and overseas production bases, we have strengthened manufacturing by promoting standardization, in-house production, and production streamlining. In the ED&C Components Business, we focused on enhancing profitability.
Meanwhile, the challenges we face in the FY2026 Medium-Term Management Plan include delays in the launch of new products and the expansion of overseas business in the plant systems field. In ED&C Components, some challenges remain in expanding the domestic power distribution business and our presence in overseas markets.
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Next, I will discuss market conditions, which form the basis of the FY2026 Medium-Term Management Plan. This slide outlines our market outlook for the environment surrounding our businesses.
In the Power Generation Business, demand for clean energy is expanding, and we expect continued demand for both geothermal and hydropower. We think pumped storage hydropower will draw more attention in the future.
In the Energy Management Business, the energy management field should see stronger demand for power grid stabilization, driven by expansion in renewable energy. In the power for general industry field, we forecast stronger demand for equipment upgrades and decarbonization.
In the renewable energy field, large-scale solar power systems in Japan are decreasing, but we expect higher demand for small- to medium-sized solar power systems and PPA projects.
In the Power Supply and Facility Systems Business, we expect ongoing capital investment by domestic and overseas data center operators, driven by the spread of generative AI. For semiconductors, we anticipate continued investments at customers to strengthen manufacturing bases in both Japan and overseas.
In the ED&C Components Business, we expect a recovery in demand for machine tools, robots, and semiconductor production equipment, which was sluggish last year, to begin in the latter half of FY2024. Demand should remain relatively stable in the power distribution field, especially for internet data center and factory construction.
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Business Policies / Business Plan
Business Policies
◆Advance priority measures for contributing to stable, optimal, and reliable supplies of energy
Net Sales by Subsegment (Billion yen) | Domestic and Overseas | ||||||||||||
Overseas | Net Sales (Billion yen) | ||||||||||||
vs FY2023 | 35% | 34% | 33% | vs FY2023 | |||||||||
sales | |||||||||||||
385.0 | +42.2 | ratio | 385.0 | +42.2 | |||||||||
342.8 | 348.0 | 348.0 | |||||||||||
54.0 | +1.1 | 342.8 | |||||||||||
Power | 52.9 | 52.9 | |||||||||||
125.5 | +5.7 | ||||||||||||
Generation | 98.0 | +17.3 | 119.8 | 118.8 | |||||||||
ManagementEnergy | 80.7 | 80.8 | Overseas | ||||||||||
Power Supply | 125.6 | 124.5 | 128.0 | +2.4 | |||||||||
and Facility | |||||||||||||
Systems | Japan 222.9 | 229.2 | 259.5 | +36.5 | |||||||||
ED&C | 96.5 | 102.9 | 111.0 | +14.4 | |||||||||
Components | |||||||||||||
Consolidation | -13.0 | -13.1 | -6.0 | FY2026 | |||||||||
Adjustment | FY2023 | FY2024 | |||||||||||
FY2026 | Medium-term | ||||||||||||
FY2024 | Management | ||||||||||||
FY2023 | Medium-term | Results | plan targets | management | |||||||||
Management | plan targets | ||||||||||||
Results | management | ||||||||||||
plan targets | |||||||||||||
plan targets | |||||||||||||
Operating Profit / Operating Profit Ratio (Billion yen)
vs FY2023
39.0 +8.9
30.1 31.0
10.1% +1.3%
8.8% 8.9%
FY2023 | FY2024 | FY2026 |
Medium-term | ||
Management | ||
Results | management | |
plan targets | ||
plan targets |
© Fuji Electric Co., Ltd. 10
This slide outlines our business policies and plans.
Fuji Electric will implement priority measures to contribute to the stable, optimized, and reliable supply of energy.
The Company targets net sales of ¥385 billion in FY2026, which represents an increase of ¥42.2 billion compared with FY2023.
While it may appear that the overseas sales ratio is decreasing due to a higher weighting in domestic sales, Fuji Electric also aims to increase overseas sales by ¥5.7 billion from FY2023.
By business segment, we plan to significantly expand sales in the Energy Management Business and ED&C Components Businesses compared to FY2023, and strongly expand the Power Supply and Facility Systems Business with a focus on data centers and semiconductor plants.
The Company aims for operating profit of ¥39.0 billion and an operating profit ratio of 10.1%.
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Disclaimer
Fuji Electric Co. Ltd. published this content on 28 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2024 02:42:05 UTC.
