Fuji Electric : Presentation Material with script

Hello, my name is Hosen. I'm from the Semiconductor Business Group.

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First up is the business overview. The Semiconductor Business Group has traditionally been divided into two segments: automotive and industrial.

Last fiscal year, sales amounted to ¥228.0 billion, with 45% in the industrial electronics

field and 55% in the automotive electronics field.

In FY2022, the industrial electronics field accounted for 51% of sales, so the automotive electronics field surpassed it in FY2023.

The automotive electronics field is primarily domestic, while the industrial electronics field is mainly focused overseas.

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This slide shows our strengths in the power semiconductor business. Currently, strengths in both the industrial and automotive electronics segments are centered around IGBT.

In IGBTs, our strengths are low loss with 7th-generation IGBTs and compact, high output with RC-IGBTs, and we place third globally in IGBT module market share.

Moving forward, we aim to expand sales by leveraging these strengths, i.e., the low loss and ease of use of our SiC-MOSFETs.

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Slide 7 reviews our previous medium-term management plan. Last fiscal year, Fuji Electric generated net sales of ¥228.0 billion. Despite withdrawing from the magnetic disk business in FY2021, the Company absorbed this impact and exceeded its sales targets,

achieving operating profit of ¥36.2 billion with a profit ratio of 15.9%, setting new records.

Our successes include doubling power semiconductor sales compared to FY2018. In the automotive electronics field, net sales have quadrupled, and we have expanded 8-inch wafer production capacity for silicon devices to approximately five times the 2018 level.

However, challenges remain. To further expand sales in the growing electrified vehicle market, Fuji Electric must continue to increase 8-inch wafer production capacity for both SiC and Si. Additionally, it is crucial to quickly develop and bring to market eighth- generation IGBTs and third-generation SiC devices, which are currently under development.

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Next is our market outlook in the FY2026 Medium-Term Management Plan.

In the industrial field, we anticipate that the adjustment phase for factory automation- related demand will continue until mid-FY2024. However, we expect a recovery in capital investment in the second half of the fiscal year, leading to market growth through FY2026.

We expect the favorable conditions to continue for renewable energy.

In the consumer electronics field, we do not anticipate significant growth in consumer electronics and air conditioning equipment in FY2024, but we expect a market recovery leading up to 2026.

In the automotive electronics field, while growth in battery electric vehicles (BEVs) has recently slowed, we anticipate significant growth in the overall electrified vehicle market. Conversely, we think demand for gasoline engine vehicles will decline as the transition to electric vehicles progresses.

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Our business policy aims to expand sales by ensuring our specifications are used in the growing fields of electric vehicles and renewable energy. Additionally, we will establish a robust production system to meet increasing demand for SiC devices.

We forecast net sales of ¥280.0 billion in FY2026, an increase of ¥52.0 billion compared to FY2023. While sales are likely to increase both domestically and internationally, we anticipate stronger growth in domestic sales and estimate the overseas sales ratio will be 47% in FY2026.

Fuji Electric targets operating profit of ¥44.5 billion, an increase of ¥8.3 billion compared to FY2023, and an operating profit ratio of 15.9%.

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