Fuji Electric (6504) investor relations material

Executive summary

• Net sales rose 10% year-over-year to a record ¥273.3 billion, with operating profit up 38% to ¥25.0 billion, driven by strong Energy and Industry segment performance.

• Profit attributable to owners of parent increased by ¥9.8 billion to ¥20.7 billion, with operating profit ratio improving by 1.9 percentage points to 9.2%.

• Profit growth was supported by gains on sales of cross-shareholdings and robust demand, despite higher personnel and raw material costs and weaker automotive semiconductor and vending machine sales.

• Upward revisions were made to six-month and full-year forecasts based on robust Q1 results and recent trends.

Financial highlights

• Net sales: ¥273.3 billion (+10.2% YoY); Operating profit: ¥25.0 billion (+38.3% YoY); Ordinary profit: ¥25.6 billion (+47.8% YoY); Profit attributable to owners of parent: ¥20.7 billion (+89.4% YoY).

• EPS for the quarter: ¥141.09, up from ¥74.16 YoY.

• Free cash flow turned positive at ¥44.4 billion, up ¥54.9 billion YoY.

• Share buyback of ¥21 billion executed during the quarter.

Outlook and guidance

• Full-year net sales forecast increased to ¥1,300.0 billion, with operating profit expected at ¥156.5 billion (12.0% margin).

• Six-month net sales forecast raised to ¥594.0 billion and operating profit to ¥58.0 billion, reflecting a 9.8% operating profit ratio.

• No change to second-half guidance; upward revision reflects strong first-half performance.

• Assumes exchange rates of $1=¥150, €1=¥175, RMB1=¥21.9 for the remainder of the year.