Fuji Electric : Presentation Material PDF with script (20251030 3)

About this update from Fuji Electric Co., Ltd.

Consolidated Financial Results for 1H FY2025 Fuji Electric Co., Ltd. October 30, 2025 © Fuji Electric Co., Ltd. Hello, everyone. Once again, I am Miyoshi, Corporate General Manager, Corporate Management Planning Headquarters. Thank you for joining us today the first half results briefing of Fuji Electric in spite of your busy schedule. Key Points Financial Results for 1H FY2025 (YoY Comparison) Net Sales 543.2 billion yen (+45.8 billion yen ) Operating Profit 42.8 billion yen (+2.4 billion yen ) Operating Profit Ratio 7.9% (-0.2%) New record highs for net sales, operating profit, and ordinary profit Performance driven by Energy and Industry segments Forecasts for Full-year FY2025 (in Comparison to Forecast Announced on July 31, 2025) Net Sales 1,185.0 billion yen (+30.0 billion yen ) Operating Profit 128.5 billion yen (+4.0 billion yen ） Operating Profit Ratio 10.8% (±0.0%) Profit Attributable to Owners of Parent 89.0 billion yen (+3.5 billion yen ) Upward revisions to forecasts for net sales and operating profit Ongoing strong performance anticipated centered on plant and system operations of Energy and Industry segments Dividends of Surplus ・Interim dividend payments of ¥91 per share (up ¥16 year on year) to pursue full-year dividend payout ratio target of 30% © Fuji Electric Co., Ltd. 2 The first half results were higher both YOY as well 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. Contents 1. 1H FY2025 Results (YoY Comparison) P. 4 2. 1H FY2025 Results (in Comparison to Forecast Announced on July 31, 2025) P.15 3. Balance Sheet, Cash Flow Statement P.17 4. FY2025 Forecasts P.20 5. Dividend of Surplus P.23 © Fuji Electric Co., Ltd. 3 Contents 1. 1H FY2025 Results (YoY Comparison) P. 4 2. 1H FY2025 Results (in Comparison to Forecast Announced on July 31, 2025) P.15 3. Balance Sheet, Cash Flow Statement P.17 4. FY2025 Forecasts P.20 5. Dividend of Surplus P.23 © Fuji Electric Co., Ltd. 4 FY2024 FY2025 Change Net Sales 497.4 543.2 45.8 Operating Profit （ Operating Profit Ratio ） 40.3 （ 8.1% ） 42.8 （7.9%） 2.4 （ -0.2% ） Ordinary Profit 38.9 41.7 2.8 Extraordinary Profit 16.3 -1.2 -17.6 Profit Before Income Taxes 55.3 40.5 -14.8 Profit Taxes 17.5 12.6 -4.9 Profit Attributable to Non-controlling Interests 2.3 1.2 -1.0 Profit Attributable to Owners of Parent (Ratio of Profit Attributable to Owners of Parent) 35.5 （ 7.1% ） 26.6 （4.9%） -8.9 （ -2.2% ） US$ 142.73 148.88 6.15 EURO 159.43 174.47 15.04 RMB 20.46 20.88 0.42 US$ 152.63 146.04 -6.59 EURO 165.95 168.06 2.11 RMB 21.15 20.30 -0.85 Summary of Consolidated Financial Results for 1H FY2025 (YoY Comparison) New Record highs for net sales, operating profit and ordinary profit (Billion yen) Change of Net Sales Gain on translation of earnings of overseas subsidiaries Demand Increase +2.0 +43.8 FY FY Change of Non-operating Profit 2024 2025 Net interest expense -0.0 （ -0.2 → -0.3 ） Foreign exchange loss 0.3（ -0.7 → -0.3） Others 0.1（ -0.5 → -0.4） 0.4（ -1.4 → -1.0） Change of Extraordinary Profit Gain on sales of investment securities -16.5（ 16.6 → 0.1） Others -1.0（ -0.3 → -1.3） -17.6（ 16.3 → -1.2） (Period-End Rate : End of September) （ Yen ） (Average Exchange Rate) （ Yen ） © Fuji Electric Co., Ltd. 5 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 YOY. 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 pushed 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 YOY 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 YOY. 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 didn't repeat this year. Profit attributable to owners of parent was 26.6 billion yen, down 8.9 billion yen YOY. Factors Behind YoY Changes in Operating Profit in 1H FY2025 (YoY Comparison) (Billion yen) Increase in sales and Increase in production volumes (+10.6) fixed costs ( ▲ 7.5) Added value and others ( ▲ 0.3) 40.3 Exchange rate effect ( ▲ 0.4) 42.8 Impacts of rising raw material costs Effects of higher product selling price Differences in model mix, in profitability between projects and cost reduction, others -2.8 +0.9 +1.6 FY2024 FY2025 © Fuji Electric Co., Ltd. 6 Labor costs -5.4 R&D -0.2 Depreciation and leases paid -1.8 Other expenses -0.1 Higher profit, despite impacts of increased fixed costs and raw material costs, due to benefits of growth in sales and production volumes, profitability differences between models, and cost reductions Let me explain factors behind YOY changes in operating profit. We had negative factors such as fixed costs, increase in raw material costs, exchange rates and so on, totaling little over 10 billion yen. These negative factors were offset by increase in sales and production volumes of 10.6 billion yen and furthermore, added values and others, such as higher selling price, better model mix, profitability difference among projects and cost reductions which accumulated profits on top. As a result, operating profit was 2.4 billion yen higher YOY. With regards to increase in sales and production volumes of 10.6 billion yen, Energy drove the strong results. Around 60% of the profit was generated by Energy. Second largest contribution was Industry, in particular, IT Solutions, where net sales increased a lot, therefore, contributed to the profit. Fixed costs increased by 7.5 billion yen. Labor costs, depreciation and leases paid increased, majority of which related to Semiconductors business. With regards to Added value and others, impacts from rising raw material costs have continued mainly from silver and copper, which totaled 2.8 billion yen as negative factors. Business units which were impacted mostly were semiconductors and ED&C components. Most of the impact was on these two divisions. (Billion yen) FY2024 FY2025 Change Net Sales Operating Profit Operating Profit Ratio Net Sales Operating Profit Operating Profit Ratio Net Sales Operating Profit Operating Profit Ratio Energy 144.0 10.0 7.0% 165.2 19.0 11.5% 4.5% -1.4* 21.2 -0.4* 8.9 Industry 175.4 8.1 4.6% 206.3 11.0 5.3% 0.7% +0.9* 31.0 -0.0* 2.9 Semiconductors 108.0 15.1 13.9% 108.7 9.0 8.3% -5.7% +2.2* 0.7 -0.0* -6.1 Food and Beverage Distribution 58.3 8.7 14.9% 52.4 5.8 11.1% -5.9 -2.9 -3.9% Others 27.4 1.7 6.0% 27.8 1.6 5.7% 0.4 -0.1 -0.3% Elimination and Corporate -15.8 -3.2 - -17.4 -3.6 - -1.6 -0.3 - Total 497.4 40.3 8.1% 543.2 42.8 7.9% -0.2% +2.0* 45.8 -0.4* 2.4 ※ Figures for FY2024 performance reflect the business reorganization undertaken in the FY2025. * Exchange rate effect Net Sales and Operating Profit by Segment for 1H FY2025 (YoY Comparison) Net sales and operating profit supported by Energy and Industry segments © Fuji Electric Co., Ltd. 7 Next, I would like to explain net sales and operating profit by segment. Net sales of Energy and Industry increased YOY by 21.2 billion yen and 31 billion yen respectively. Operating profit of Energy increased by 8.9 billion yen and Industry by 2.9 billion yen YOY, which offset the decline of profit in Semiconductors and Food and Beverage Distribution. We achieved operating profit ratio improvement in Energy up to 11.5% in the first half. Power Generation Higher net sales and operating results (Net Sales Increased by 6%) Increase in net sales and operating results as a result of the benefits of an increase in large-scale renewable energy projects Energy Management Higher net sales and operating results (Net Sales Increased by 26%) Increase in net sales and operating results as a result of increases in storage battery system orders and in large-scale orders for substation equipment for power and industrial applications and power supply equipment for industrial applications Power Supply and Facility Systems Higher net sales and operating results (Net Sales Increased by 16%) Increase in net sales and operating results due to growth in demand from data centers Equipment Construction Higher net sales and operating results (Net Sales Increased by 8%) Increase in net sales and operating results due to an increase in large-scale orders, differences in profitability between projects, and the benefits of cost reduction activities Business Results by Segment for 1H FY2025 (YoY Comparison) Energy (Billion yen) 11.5% 7.0% Change 165.2 +21.2 Sales 144.0 19.0 +8.9 Operating Profit 10.0 Sales Operating Profit FY2024 Sales Operating Profit FY2025 ※ Figures for FY2024 performance reflect the business reorganization undertaken in the FY2025. © Fuji Electric Co., Ltd. 8 Higher net sales and operating profit, driven by expanding energy demand and improved margins In Energy, net sales increased by 21.2 billion yen and operating profit increased by 8.9 billion yen YOY. Operating profit margin was 11.5%. Revenue drivers were clearly Energy Management and Power Supply and Facility Systems in particular, contributing greatly to net sales. Accordingly, operating profit improved significantly in those two subsegments. Let me go though each sub-segment. With regards to Power Generation, we achieved increases both in net sales and operating profit as a result of the benefits of an increase in large-scale renewable energy projects. With regards to Energy Management, we achieved increases both in net sales and operating profit driven by storage battery system for grid stability and substation equipment. Regarding Power Supply and facility systems, demand from data centers stayed strong, achieving increases both in net sales and operating profit. With regards to Equipment Construction, good momentum is continuing and we achieved higher net sales and operating profit. Factory Automation Components Higher net sales and operating results (Net Sales Increased by 4%) Increase in net sales and operating results, despite flat growth in domestic demand, as a result of rising demand seen centered on Asia and Europe Automation Systems Higher net sales but operating results worsened (Net Sales Increased by 11%) Increase in net sales due to increased demand from the steel industry. Decrease in Operating results because of a rise in expenses associated with large-scale projects Social Solutions Higher net sales and operating results (Net Sales Increased by 17%) Increase in net sales and operating results due to increases in demand for transportation systems g ED&C Components Higher net sales and flat operating results (Net Sales Increased by 7%) Increase in net sales because of a modest recovery in demand from finished machinery manufacturers while operating results were relatively unchanged due to the impacts of higher material prices IT Solutions Higher net sales and operating results (Net Sales Increased by 54%) Increase in net sales and operating results following growth in large-scale orders from the academic sector Business Results by Segment for 1H FY2025 (YoY Comparison) ​Industry Higher net sales and operating profit, driven by IT Solutions (Billion yen) 4.6% 5.3% 206.3 Change +31.0 Sales 175.4 11.0 +2.9 Operatin Profit 8.1 Sales Operating FY2024 Profit Sales Operating FY2025 Profit ※ Figures for FY2024 performance reflect the business reorganization undertaken in the FY2025. © Fuji Electric Co., Ltd. 9 Net sales in Industry increased by 31 billion yen to 206.3 billion yen. Operating profit increased by 2.9 billion yen to 11 billion yen. Operating profit ratio was 5.3%. Of the increase of net sales by 31 billion yen, around two thirds was contributed by IT Solutions. Other businesses, Factory Automation Components, Automation, Social Solutions, ED&C Components saw net sales increase of 2 to 3 billion yen respectively YOY. With regards to Automation Systems, net sales increased but unfortunately profit decreased due to higher expenses associated with large-scale projects as we explained in the first quarter. Sales FY2024 FY2025 Change Industrial 51.1 56.4 5.3 Automotive 57.0 52.3 -4.6 Capital investment 39.4 22.7 -16.7 Depreciation and leases paid* 17.4 18.8 1.5 Business Results by Segment for 1H FY2025 (YoY Comparison) Semiconductors (Billion yen) 13.9% 8.3% Change 108.0 108.7 +0.7 Sales (Billion Yen) 15.1 9.0 -6.1 Operating Profit Sales Operating FY2024 Profit Sales Operating FY2025 Profit * The total amount of depreciation and leases paid as stated in the consolidated financial report. © Fuji Electric Co., Ltd. 10 Decrease in operating profit, mainly due to reduce automotive demand Higher net sales but operating results worsened (Net Sales Increased by 1%) Increase sales of industrial semiconductors due to higher demand in China and beneficial foreign exchange influences, but decrease sales of automotive semiconductors due to reductions in domestic and overseas demand for power semiconductors for electrified vehicles Decrease operating results, regardless of the growth in sales of industrial semiconductors, due to the lower sales of automotive semiconductors, the rise in expenses for bolstering production capacity, and the increases in material costs In Semiconductors, net sales increased by 0.7 billion yen YOY to 108.7 billion yen. Operating profit declined by 6.1 billion yen to 9 billion yen. Operating profit margin was 8.3%, significant decline in profit. At the bottom on the right, we show the breakdown between Industrial and Automotive. In Industrial, net sales increased by 5.3 billion yen YOY. As we explained in Q1, it is driven by strong demand from renewable energy mainly in China. On the other hand, in Automotive, net sales declined by 4.6 billion yen due to decline in demand from power semiconductors both in Japan and overseas. Compared to the magnitude of net sales decline, operating profit fell more because of higher raw material prices and increase in depreciation and leases paid, which could not be fully offset by increase in sales and production volume.

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