[Company analysis] Fuji Electric Holdings Co., Ltd. (富士電機)

「Fuji Electric Holdings Co., Ltd. (富士電機)」is a major electronic equipment manufacturer headquartered in Tokyo, and a core company of「Furukawa Zaibatsu(古河財閥)」.They are focusing on large electrical equipment such as pressure / differential pressure gauges, flow meters, gas analyzers, controllers, inverters, pumps, generators, ICs, motors, and electric power equipment. Their main competitors are「Hitachi, Ltd.(日立製作所)」,「Mitsubishi Electric Corporation(三菱電機)」,「Toshiba Corporation(東芝)」and「Nissin Electric Co., Ltd.(日新電機)」. In the past, this company handled   home appliances business, but they withdrew it in 1976 due to lack of distribution channels. The number of consolidated employees is approximately 27,009.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Fuji Electric Holdings Co., Ltd.
Company name (Japanese)	富士電機
Date of establishment	Wednesday, August 29, 1923
Headquarters location	〒141-0032 東京都品川区大崎一丁目11番2号
Capital	47,586
Consolidated sales	914,915
Consolidated operating profit	59,972
Consolidated total assets	952,659
Consolidated capital	392,061
Capital adequacy ratio	41.2%
Consolidated number of employees	27,009

 

 

 

2. Summary and Features

 
「Fuji Electric」is a company established in 1917 by「Furukawa Electric Co., Ltd.(古河電気工業)」by forming a capital and technical tie-up with「Siemens」in Germany. "Fuji" of "Furukawa Electric Industry" and "Ji" of "Siemens" were combined to determine the company name "Fuji". Currently, This company conducts business activities with 116 subsidiary companies and 21 affiliated companies including「Fuji Electric FA Components & Systems Co., Ltd.(富士電機機器制御)」 which is the core company of this group.

「Fuji Electric」is a general electric machine manufacturer that is basically focused on the energy business. They mainly handle heavy electrical products, and have a variety of products in the fields of steam turbines for power plants, power semiconductors for factories, industrial plants, and power semiconductors. Among them, they specialize in power generation facilities and have the world's top share (about 40%) in the geothermal power generation field. In 2010, they started operation of a 140 MW geothermal power plant in New Zealand, which is the largest single-unit capacity in the world. They are also actively participating in the development of smart grids as a company that handles electricity. 

 

In 1969, this company entered the vending machine business, and exclusively supplied 230 drinking water vending machines at the 1970 Osaka World Exposition. In this vending machine field, they currently have the largest share(about 50%) in Japan, and after they bought the shares of the vending machine manufacturing company from「Sanyo Electric Co., Ltd.(三洋電機)」. They also jointly developed a peak-shift vending machine with「Coca-Cola Japan Company, Limited(日本コカ・コーラ)」and they collaborated with「Seven-Eleven Japan Co., Ltd.,(セブン-イレブン・ジャパン)」to develop vending machines for "Seven Cafe". Even now, they are jointly developing  vending machine jointly developed with「Japan Railway」.

In addition,「Fujitsu(富士通)」, a company with a similar company name, was actually an independent company  from the telephone department of「Fuji Electric」. They were spun off on June 20, 1935. 「Fujitsu」become now a famous IT company in Japan, and they have many excellent affiliated companies such as「FANUC Corporation(ファナック)」. However, there is no more a direct capital relationship between「Fujitsu」and「Fuji Electric」.

 

 

 

3. Major Business

 

■ Power electronics system
It is a business that supports the power infrastructure and supplies, optimizes, and stabilizes energy. They handle energy management systems, data centers, uninterruptible power supplies (UPS), switchboards, controllers, etc.

■ Electronic device
They mainly handle industrial and automotive semiconductors with high quality, miniaturization and low power consumption.

■ Power plant
Not only thermal power and nuclear power, but also geothermal power generation, hydroelectric power generation, solar power generation, and wind power generation, we provide integrated support from design and production to installation, trial operation, and after-sales service.

■ Food distribution
They handle automated food distribution services such as beverage and food vending machines.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		837,765	893,451	914,915
Consolidated operating profit		44,709	55,962	59,972
Consolidated total assets		886,663	918,859	952,659
Consolidated net assets		323,863	366,546	392,061
Breakdown of sales	Power system・Energy solution business	210,285	217,861	220,409
	Power system・Industrial solution business	277,826	306,754	308,921
	Power generation business	93,427	96,757	106,921
	Electronics business	115,306	123,502	133,828
	Food distribution business	109,246	117,485	113,345
	Others	31,672	31,089	31,488