Fuji Electric Co Ltd (FELTF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, once again I am Miyoshi, Corporate General Manager, Corporate Management Planning Headquarters. Thank you so much for joining us today, the first half result briefing of Fuji Electric, in spite of your busy schedule. The first half results were higher both year-on-year as well as compared to our July upward revision. Net sales, operating profit, and ordinary profit were all record highs. As we alluded in July, energy and industry were drivers for the financial performance and this trend was more obvious in the first half. This page shows the summary of consolidated financial results for the first half of FY2025 compared to the last fiscal year. Net sales, operating profit and ordinary profit were record highs. Net sales were 543.2 billion yen, 45.8 billion yen higher year-on-year. If you look at the right-hand side for the breakdown of changes in net sales, you see a gain on translation of earnings of overseas subsidiaries of 2 billion yen, which push up net sales. Without it, net sales increase would have been 43.8 billion yen driven by demand increase. Operating profit increased by 2.4 billion yen year-on-year to 42.8 billion yen. I will explain the details of changes in operating profit later. Operating profit ratio was 7.9%. There was no major change in non-operating profit in the first half, but with the impact from the exchange rate, ordinary profit was 41.7 billion yen, 2.8 billion yen higher year-on-year. Extraordinary profit declined 17.6 billion yen to minus 1.2 billion yen because we had a gain on sales of investment securities last year, but it did not repeat this year. Profit attributable to owners or parent was 26.6 billion yen, down 8.9 billion yen year on year. Let me explain factors behind year on year changes in operating profit. We ...