Renovation 2018 FY2018 Medium-Term Management Plan April 28, 2016 Fuji Electric Co., Ltd.

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2 Contents Looking back at FY2015 Medium-Term Management Plan - Comparison with FY Comparison between FY2015 Medium-Term Management Plan and Results FY2018 Medium-Term Management Plan 2016 Fuji Electric Co., Ltd. All rights reserved. 2

Business Performance Trends Record-breaking operating margin and net income, operating income

Restructuring 689.1 703.5 (1.7%) 15.1 11.9 (2.7%) 745.8 759.9 (2.9%) 26.4 19.3 22.0 11.

6 FY2012 2015 Change +67.8 (109%) +23.0 (205%) +4.

4 Business Performance Trends Record-breaking operating margin and net income, operating income doubled in comparison to FY2012 (billion yen) Establish a Profitable Structure through Business Restructuring (1.7%) (2.7%) (2.9%) FY2015 Medium-Term Management Plan (4.4%) (4.8%) (5.5%) FY Change (109%) (205%) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Net sales Operating income Profit attributable to owners of parent Operating margin 2016 Fuji Electric Co., Ltd. All rights reserved. 4

Net Sales (by Segment) (billion yen) 745.8 60.6 112.1 112.8 813.6 62.6 115.0 119.8 Others Food and Beverage Distribution Electronic Devices Change +67.8 +2.0 +2.9 +7.0 176.4 203.

5 Net Sales (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Change Power Electronics Industrial Infrastructure FY2012 Results FY2015 Results Power and Social Infrastructure Elimination Figures for FY2012 reflect the organizational restructuring conducted in FY Fuji Electric Co., Ltd. All rights reserved. 5

7 Operating Income (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Change Power Electronics Industrial Infrastructure Power and Social Infrastructure Elimination FY2012 Results FY2015 Results 2016 Fuji Electric Co., Ltd. All rights reserved. 7

Establish Foundations to Expand Overseas Business (Looking Back Three Years)

substation equipment and vending machines) India Factory (inverters)

Factory Virginia Factory Conduct M&A: 8 Investment amount:approx. 20.

SMBE(switchgear and controlgear) Fuji CAC (engineering) Fuji GEMCO

(medium-voltage inverters) RTS (power plant service) Fuji SEMEC (electrical

8 Establish Foundations to Expand Overseas Business (Looking Back Three Years) Establish production bases Asia Americas Thai Factory (power electronics, substation equipment and vending machines) India Factory (inverters) Virginia Factory(inverter boards, electrical equipment for railcars) India Factory Virginia Factory Conduct M&A: 8 Investment amount:approx billion Asia China Americas Europe Fuji Tusco (transformers) Fuji SMBE(switchgear and controlgear) Fuji CAC (engineering) Fuji GEMCO (engineering) Shanghai Electric Fuji Electric Power Technology (Wuxi) (medium-voltage inverters) RTS (power plant service) Fuji SEMEC (electrical equipment for railcars) Fuji N 2 (fuel cells) Fuji Tusco Fuji SMBE RTS 2016 Fuji Electric Co., Ltd. All rights reserved. 8

Measures to Establish a Profitable Structure (Looking Back Three Years) Advancement of profitability improvement activities (Pro-7 Activities) - Cost reductions: 65.

9 Measures to Establish a Profitable Structure (Looking Back Three Years) Advancement of profitability improvement activities (Pro-7 Activities) - Cost reductions: 65.5 billion Group centralized purchasing, global procurement, in-house manufacturing, and business efficiency improvement Promotion of local production and consumption - Reduced foreign exchange exposure 0 (billion yen) Operating income 22.0 FY2012 Results Price reductions Fixed costs increases High material prices, etc Cost reductions +8.3 Sales increases +1.8 Foreign exchange influences 45.0 FY2015 Results Fuji Electric Co., Ltd. All rights reserved. 9

11 FY2015 Medium-Term Management Plan and Results Net sales target unmet, operating income target met FY2015 Medium-Term Management Plan FY2015 Results (billion yen) Change Net Sales Operating Income Operating Margin 5.3% 5.5% +0.2pt Profit Attributable Owners of Parent Financial Indicators FY2015 Medium-Term Management Plan FY2015 Results Change Net Dept-Equity Ratio 0.7times 0.7times 0.0 times Total Net Asset Ratio 25% 27% +2pt ROA (Return on assets) 3% 4% +1pt ROE (Return on equity) 14% 12% -2pt 2016 Fuji Electric Co., Ltd. All rights reserved. 11

12 FY2015 Net Sales (by Segment) (billion yen) , Others Food and Beverage Distribution Electronic Devices Change Power Electronics Medium-Term Management Plan Results Industrial Infrastructure Power and Social Infrastructure Elimination Figures for FY2015 Medium-Term Management Plan reflect the organizational restructuring conducted in FY Fuji Electric Co., Ltd. All rights reserved. 12

FY2015 Operating Income (by Segment) (billion yen) 45.0 45.0 1.0 2.3 8.0 7.8 9.0 9.9 11.2 7.8 Others Food and Beverage Distribution Electronic Devices Power Electronics Change 0.0 +1.3-0.2 +0.9-3.

14 FY2015 Operating Income (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Power Electronics Change Industrial Infrastructure Medium-Term Management Plan Results Power and Social Infrastructure Elimination Fuji Electric Co., Ltd. All rights reserved. 14

15 Issued Identified Under FY2015 Medium-Term Management Plan Failure to grow net sales in line with targets Low profit margins for power electronics 2016 Fuji Electric Co., Ltd. All rights reserved. 15

Corporate Philosophy Corporate Philosophy We, Fuji Electric, pledge as responsible corporate citizens in a global society to strengthen our trust with communities, customers and

17 Corporate Philosophy Corporate Philosophy We, Fuji Electric, pledge as responsible corporate citizens in a global society to strengthen our trust with communities, customers and partners. Contribute to prosperity Encourage creativity Seek harmony with the environment Slogan To be enthusiastic, ambitious and sensitive Fuji Electric Co., Ltd. All rights reserved. 17

Management Policies Management Policies 1.Through our innovation in energy and environment technology, we contribute to the creation of responsible and sustainable societies. 2.

18 Management Policies Management Policies 1.Through our innovation in energy and environment technology, we contribute to the creation of responsible and sustainable societies. 2.Achieve further growth through our global business expansion. 3.Maximize our strengths as a team, respecting employees diverse ambition Fuji Electric Co., Ltd. All rights reserved. 18

19 Priority Measures for FY2018 Medium-Term Management Plan Further Renovation of Fuji Electric Renovation 2018 Implement growth strategies Reform operating processes in social infrastructure, industrial infrastructure, and power electronics businesses Continue expansion of overseas operations through additional M&As Create high-value-added products that meet customer demand Improve profitability Reinforce profit structure for power electronics Re-energize Pro-7 Activities 2016 Fuji Electric Co., Ltd. All rights reserved. 19

20 FY2018 Medium-Term Management Plan Target operating margin of more than 6% in FY2018 FY2015 Results FY2018 Medium-Term Management Plan Change Net Sales Operating Income Operating Margin 5.5% 6.0% +0.5pt Profit Attributable Owners of Parent Financial Indicators Net Dept-Equity Ratio 0.7times 0.6 times -0.1times Total Net Asset Ratio 27% 32% +5pt ROA (Return on assets) 4% 4% 0.0pt ROE (Return on equity) 12% 12% 0.0pt (billion yen) FY US$ EURO Assumed Exchange Rate Fuji Electric Co., Ltd. All rights reserved. 20

Megatrends and Macroeconomic Market Projections (2016-2018) Megatrends Region Market trend forecasts Real GDP growth rate* Growing

Expansion of new services utilizing IoT.

in general consumption and retail fields. 0.2% 6.

Electric estimates based on IMF (Investigation on April 2016) Higher energy demand centered on emerging countries, accelerated

21 Megatrends and Macroeconomic Market Projections ( ) Megatrends Region Market trend forecasts Real GDP growth rate* Growing population and changing population distribution Rapid urbanization Japan China Increased investment stimulated by deregulation of electricity sales. Progressive social and industrial infrastructure redevelopment in consideration of 2020 Tokyo Olympics and infrastructure aging. Expansion of new services utilizing IoT. Overall deceleration in investment growth but higher environment- and production facility automation-related investment and growth in general consumption and retail fields. 0.2% 6.1% More-advanced industry / technological progress Climate change (environmental regulations) Asia Americas Europe * GDP: Fuji Electric estimates based on IMF (Investigation on April 2016) Higher energy demand centered on emerging countries, accelerated investment in social infrastructure and production facilities, and increased infrastructure investment in India fueled by robust internal demand. Overall economic stability and growth in railroad, transportation, telecommunications, and automotive markets. 4.4% 2.4% Improved energy efficiency and growth in renewable energy investment and high-efficiency production facility investment. 1.7% 2016 Fuji Electric Co., Ltd. All rights reserved. 21

22 Net Sales (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Change Power Electronics FY2015 Results FY2018 Medium-Term Management Plan Industrial Infrastructure Power and Social Infrastructure Elimination Figures for FY2015 Results reflect the organizational restructuring conducted in FY Fuji Electric Co., Ltd. All rights reserved. 22

23 Net Sales (Japan and Overseas) (billion yen) Ratio of overseas sales 27% 30% Change Overseas Japan FY2015 Results FY2018 Medium-Term Management Plan 2016 Fuji Electric Co., Ltd. All rights reserved. 23

24 Net Sales in Japan (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Power Electronics Change Industrial Infrastructure Power and Social Infrastructure Elimination FY2015 Results FY2018 Medium-Term Management Plan 2016 Fuji Electric Co., Ltd. All rights reserved. 24

Overseas Net Sales (by Segment) (billion yen) 215.8 5.5 11.9 265.3 6.2 23.4 85.

7 81.2 34.4 29.0 38.8 FY2015 Results -1.3-3.

25 Overseas Net Sales (by Segment) (billion yen) Others Food and Beverage Distribution Electronic Devices Change FY2015 Results FY2018 Medium-Term Management Plan Power Electronics Industrial Infrastructure Power and Social Infrastructure Elimination Fuji Electric Co., Ltd. All rights reserved. 25

Overseas Net Sales (by Area) (billion yen) 265.3 Change +49.5 215.8 16.7 12.6 25.1 26.2 Europe Americas +8.4 +13.6 82.6 89.

27 Operating Income (by Segment) (billion yen) 54.0 Change Others Food and Beverage Distribution Electronic Devices Power Electronics Industrial Infrastructure Power and Social Infrastructure Elimination +2.7 FY2015 Results FY2018 Medium-Term Management Plan 2016 Fuji Electric Co., Ltd. All rights reserved. 27

Power and Social Infrastructure < Japan> Increase

sales Bolster smart meter production capacity and

suppliers (cloud systems, electricity storage systems,

generation service businesses Increase fuel cell and

meters Thermal power generation Fuel cells (Germany)

29 Power and Social Infrastructure < Japan> Increase thermal and geothermal power generation orders and sales Bolster smart meter production capacity and reduce costs Expand new businesses targeting new power suppliers (cloud systems, electricity storage systems, etc.) <Overseas> Expand thermal and geothermal power generation service businesses Increase fuel cell and solar power generation system orders and sales Smart meters Thermal power generation Fuel cells (Germany) service business (Americas) 2016 Fuji Electric Co., Ltd. All rights reserved. 29

Industrial Infrastructure <Japan> Continue addressing domestic

businesses centered on IoT <Overseas> Expand operations in Asia -Utilize

measure operations centered on China Service business Asia business

30 Industrial Infrastructure <Japan> Continue addressing domestic infrastructure investment and replacement demand Expand system and service businesses centered on IoT <Overseas> Expand operations in Asia -Utilize M&As to reinforce completely localized businesses Grow environmental measure operations centered on China Service business Asia business Aerosol analyzer (China) (Thailand /transformers) 2016 Fuji Electric Co., Ltd. All rights reserved. 30

Power Electronics Reinforce profit structure <Japan> Develop

electronics equipment and DC-related equipment <Overseas>

Grow system businesses in motion and FA fields DC power supply

31 Power Electronics Reinforce profit structure <Japan> Develop and launch competitive, new products -SiC-equipped power electronics equipment and DC-related equipment <Overseas> Increase sales by stepping up M&As and overseas collaboration Grow system businesses in motion and FA fields DC power supply system Motion and control 2016 Fuji Electric Co., Ltd. All rights reserved. 31

Electronic Devices Reinforce development of SiC modules -SiC modules

IGBTs (industrial fields) Accelerate local production and consumption

SiC hybrid modules for industrial IGBT modules for automotive 7 th

32 Electronic Devices Reinforce development of SiC modules -SiC modules (industrial, railway and automotive-use) Boost share of 7th-generation IGBTs (industrial fields) Accelerate local production and consumption -Ratio of back-end production processes conducted overseas (50% 56%) SiC hybrid modules for industrial IGBT modules for automotive 7 th -generation IGBT modules 2016 Fuji Electric Co., Ltd. All rights reserved. 32

Food and Beverage Distribution <Japan> Develop and promote new products

in China and Asia -Production capacity increases in China (develop system

integrated showcase Cup vending machine (China) Production line of

33 Food and Beverage Distribution <Japan> Develop and promote new products for convenience store industry <Overseas> Expand vending machine business in China and Asia -Production capacity increases in China (develop system with annual production capacity of 100,000 units) Refrigerator unit integrated showcase Cup vending machine (China) Production line of vending machine (Dalian, China) 2016 Fuji Electric Co., Ltd. All rights reserved. 33

34 Capital Investment Increase overseas production facility investment (19% 26%) Strengthen manufacturing capabilities using IoT (billion yen) Change +7.3 Shared Shared Food and Beverage Distribution Test facility and evaluation equipment Vending machine construction of 2nd factory in China Production system reforms Electronic Devices 7-generation IGBT production facilities in Japan and Malaysia Power Electronics Suzuka technical center Production facilities at factories in U.S. and Thailand FY Aggregate FY Aggregate Industrial Infrastructure Power and Social Infrastructure Substation production facilities Smart meter production facilities Production facility in Kawasaki Factory 2016 Fuji Electric Co., Ltd. All rights reserved. 34

35 Research and Development Develop competitive, value-added products and conduct related upfront investments ( billion) Change +6.6 Shared +0.1 Food and Beverage Distribution Next-generation vending machines New products for convenience stores Electronic Devices SiC devices and modules Automotive devices and modules Power Electronics SiC-equipped power electronics equipment Motion/servo equipment Industrial Infrastructure IoT-compatible systems and services Industrial distribution solutions FY Aggregate 10.5 FY Aggregate +0.7 Power and Social Infrastructure High-efficiency of turbines Electric power distribution and electricity storage systems Note: Figures for R&D expenditures above have been divided by segment based on theme and may therefore differ from the figures contained in the consolidated financial report for the fiscal year ended March 31, Fuji Electric Co., Ltd. All rights reserved. 35

Human Resources Development Utilize diverse range of human resources Globally-competent human resources - Cultivate managers - Promote strategic rotation programs for mid-level employees and

36 Human Resources Development Utilize diverse range of human resources Globally-competent human resources - Cultivate managers - Promote strategic rotation programs for mid-level employees and stock-model for human resources - Increase dispatch of young employees as overseas trainees Empowerment of female employees - Increase number of female officers: 172 people in FY people in FY2020 Flexible working styles - Enhance work-nursing care balance support systems 2016 Fuji Electric Co., Ltd. All rights reserved. 36

38 Energy and Environment Business Operated by Fuji Electric in Pursuit of Sustainable Growth Energy Energy generation Power Supplies Electricity supply stabilization FEMS Drives and Automation Automation, labor saving, and energy saving Food and Beverage Distribution Food safety and security Mega-solar power Thermal power Geothermal power Micro-hydro power Wind power Fuel cells Power conditioners Fuel cell Power grids UPSs Smart meters Substation equipment Hospital UPSs Inverters Electric equipment for railcars Electronic Devices Electricity control and transformation Motion systems Distribution centers Automotive electronics Data centers Measuring instruments BEMS Fuel cells Smart stores Vending machines (fire protection /disaster prevention) 2016 Fuji Electric Co., Ltd. All rights reserved.

Pursuit of Sustainable Growth FY2016~2018

Automotive power electronics, etc ~FY2023

1 trillion Operating margin of 7% Contribute

39 Pursuit of Sustainable Growth FY2016~2018 Renovation Business model renovation and growth foundation establishment FY2019~ Fruition of new products and businesses Transformation into sustainably growing company Thermal power generation IoT SiC Automotive power electronics, etc ~FY2023 (100th anniversary of foundation) Net sales of 1 trillion Operating margin of 7% Contribute to realization of sustainable society 2016 Fuji Electric Co., Ltd. All rights reserved. 39

40 Disclaimer 1.These materials are outside the scope of auditing procedures required by law, and as of the date of this results presentation, financial statement auditing procedures required by law have not yet been completed. 2. Statements made in this documents or in the presentation to which they pertain regarding estimates or projections are forward-looking statements based on the company s judgments and assumptions in light of information currently available. Actual results may differ materially from those projected as a result of uncertainties inherent in such judgments and assumptions, as well as changes in business operations or other internal or external conditions. Accordingly, the company gives no guarantee regarding the reliability of any information contained in these forwardlooking statements. 3. These documents are for information purpose only, and do not constitute an inducement by the company to make investments. 4. Unauthorized reproduction of these documents, in part or in whole, is prohibited Fuji Electric Co., Ltd. All rights reserved. 40

Management Plan for FY2013

Management Plan for FY2013 for April 26, 2013 Fuji Electric Co., Ltd. 1 Looking back from FY2010 to Establish profitable structure by business restructuring ED&C, Magnetic Disks, Vending Machines, Drives, Power Semiconductors and