ANNUAL REPORT 2004 01 02 04 Contents Question 1 Question 2 Question 3 Question 4 08 10 12 14 20 26 32 38 40 46 48 51 51 52 60 62 63 64 65 81 82 84 86 87 10,000 8,000 8,518 8,910 8,391 8,324 8,561 2000.3 2001.3 2002.3 2003.3 2004.3 6,000 4,000 2,000 0 250 100 250 200 174 150 129 97 50 39 55 0 100 50 74 –50 41 –100 0 2000.3 2001.3 2002.3 2003.3 2004.3 –32 –74 2000.3 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 01 A Message From the President 02 02 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 03 Interview With the President 04 Q1 04 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Q2 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 05 Interview With the President Q3 5.0 5.0 5,000 4.0 4,000 3.0 3,000 2.0 2.0 2.5 3,630 3,300 3,000 2,000 1.5 1.0 1,000 0 0 2003.3 06 4,388 2004.3 2005.3 2006.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 2003.3 2004.3 2005.3 2006.3 Q4 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 07 Fuji Electric : a frontrunner for 80 years 08 1923 8 08 1927 1930 1936 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 1954 1955 1958 1965 1969 1971 1975 1985 1986 1989 1991 1992 1995 1996 1998 2002 2003 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 09 9 Topics 10 10 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 11 At a Glance 4,135 2002.3 32 3,833 12 2003.3 –1 4,031 2004.3 5 1,591 2002.3 –33 1,599 2003.3 11 1,680 2004.3 23 1,284 2002.3 45 1,245 2003.3 72 1,296 2004.3 97 2002.3 1,295 25 2003.3 25 1,544 1,507 2004.3 2002.3 12 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 20 752 5 2003.3 761 20 2004.3 757 23 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 13 Review of Operations 14 14 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Energy & Electric Systems Group Membrane Filtration System for Water Purification FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 15 Review of Operations Waste Recycling Facility Workplace Radiation Management System 16 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Steam Turbine for Use in Thermal Power Plants Large-capacity Transformer Rectifier Unit The 8000 Series of Next-generation UPS Units FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 17 Review of Operations 18 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 5,000 4,000 3,000 41.4 3,816 42.7 4,135 45.7 4,135 42.7 43.5 3,833 4,031 50.0 40.0 30.0 2,000 20.0 1,000 10.0 0 0 2000.3 80 2001.3 2002.3 2004.3 4.0 75 60 61 40 1.6 20 3.0 2.0 32 1.0 1.8 0.8 0 –20 2000.3 120 100 80 60 40 20 0 2003.3 2001.3 2002.3 76 73 68 70 –1 5 0.0 0.1 2003.3 2004.3 0 –1.0 102 67 2000.3 63 42 47 2003.3 2004.3 40 2001.3 2002.3 98 103 2000.3 2001.3 2002.3 2003.3 2004.3 9,930 10,536 9,522 10,190 10,535 2000.3 2001.3 2002.3 2003.3 2004.3 150 120 116 90 90 103 60 30 0 12,500 10,000 7,500 5,000 2,500 0 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 19 Review of Operations 20 20 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 ED&C•Drive Systems Group The New 움-TWIN Series of Molded-case Circuit Breakers and Earth-leakage Circuit Breakers FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 21 Review of Operations The FRENIC-Eco Series of General Purpose Inverters 22 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 The NEO SC Series of Magnetic Contactors The MICREX-SX Series of Programmable Logic Controllers FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 23 Review of Operations 24 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 1,965 2,000 1,500 40.0 1,591 1,560 1,599 1,680 30.0 1,000 500 20.0 16.9 20.3 17.6 17.8 18.1 2002.3 2003.3 2004.3 0 0 2000.3 2001.3 75 6.0 53 50 4.0 25 0 –24 2.7 –33 11 23 2.0 1.4 0 0.7 –25 –50 10.0 –1.6 2000.3 2001.3 –2.1 2002.3 –2.0 –4.0 2003.3 2004.3 75 60 45 63 50 52 50 55 47 44 49 30 40 22 15 0 2000.3 2001.3 2002.3 2003.3 50 45 40 30 2004.3 35 28 29 2000.3 2001.3 6,033 6,019 28 20 10 0 2002.3 2003.3 2004.3 5,263 5,435 5,119 2002.3 2003.3 2004.3 7,500 6,000 4,500 3,000 1,500 0 2000.3 2001.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 25 Review of Operations 26 26 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Electronics Group Aluminum and Glass Magnetic Disks FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 27 Review of Operations 28 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 The Super FAP-G Series of Power MOSFETs The U Series of IGBT Modules Autofocus ICs Micro Power Supply Modules Organic Photoconductive Drums FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 29 Review of Operations 30 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 1,500 1,200 1,379 1,165 900 600 12.6 14.2 20.0 1,284 1,245 1,296 14.2 13.9 14.0 4.0 0 0 2000.3 2001.3 2002.3 2003.3 120 2004.3 97 80 59 40 –40 –75 4.3 5.8 12.0 8.0 72 45 7.5 3.5 4.0 0 –4.0 –6.5 –80 –8.0 2000.3 2001.3 2002.3 150 140 137 200 2003.3 2004.3 178 164 160 120 12.0 8.0 300 0 16.0 134 105 124 140 79 80 40 0 2000.3 2001.3 2002.3 2003.3 2004.3 79 75 77 78 2000.3 2001.3 2002.3 2003.3 2004.3 4,912 4,676 4,190 4,152 4,043 2002.3 2003.3 2004.3 80 70 60 40 20 0 5,000 4,000 3,000 2,000 1,000 0 2000.3 2001.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 31 Review of Operations 32 32 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Retail Support Equipment & Systems Group Cup-type Soft Drink Vending Machines Offering Frozen Drinks FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 33 Review of Operations Edy-compatible Settlement System for Retail Stores Dual Shop System 34 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 Unitized Store System Ecolo Unit Mini Store Construction System R-CUBE FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 35 Review of Operations 36 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 1,600 1,402 1,430 1,200 800 15.2 14.8 1,544 1,507 17.2 16.3 1,295 15.0 14.3 10.0 400 5.0 0 0 2000.3 75 2001.3 2002.3 2003.3 2004.3 5.0 4.5 60 45 4.0 62 3.0 2.6 30 37 15 1.9 1.7 25 25 2002.3 2003.3 0 2000.3 2001.3 75 1.4 2.0 1.0 20 0 2004.3 72 62 60 45 30 20.0 37 29 55 33 27 24 15 16 14 2003.3 2004.3 0 2000.3 2001.3 2002.3 50 46 40 30 30 27 26 2000.3 2001.3 2002.3 2,802 2,781 2,628 2000.3 2001.3 2002.3 26 20 10 0 3,500 2,800 2003.3 2004.3 3,219 3,080 2003.3 2004.3 2,100 1,400 700 0 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 37 Review of Operations 38 38 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 1,500 1,200 15.0 25 12.0 20 8.1 9.0 15 757 6.0 10 3.0 5 0 0 13.9 1,280 900 600 8.0 784 8.2 752 8.4 761 300 0 2000.3 2001.3 2002.3 2003.3 2004.3 80 60 40 24 23 20 20 5.0 4.0 3.0 3.1 3.1 2.7 5 1.6 2000.3 2.0 1.0 0 2001.3 0.7 2002.3 2003.3 2,152 2,116 2,067 2004.3 3,500 2,800 57 3,022 2,100 31 20 1,686 1,400 15 17 14 17 11 17 14 16 2001.3 2002.3 2003.3 2004.3 0 700 0 2000.3 2000.3 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 39 Research & Development 500 5.0 5,000 400 4.0 4,000 3.0 3,000 2.0 2,000 1.0 1,000 0 0 40 300 40 200 3.3 3.0 3.3 3.2 3.3 282 270 280 267 285 100 0 2000.3 2001.3 2002.3 2003.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 2004.3 4,559 4,550 4,418 4,680 2000.3 2001.3 2002.3 2003.3 4,467 2004.3 4.1% 16.2% 36.3% 27.6% 15.8% FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 41 Research & Development Membrane Filtration System for Water Purification 42 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 43 Research & Development High-definition Organic Light Emitting Displays Amorphous Silicon Solar Cells Integrated with Roof 44 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 45 160,000 167,192 148,164 143,585 120,000 46 Environmental Conservation/Social Contributions 200,000 46 80,000 28.9 27.2 27.6 129,916 130,154 25.9 25.0 40,000 0 50.0 50,000 40.0 40,000 30.0 30,000 20.0 20,000 10.0 10,000 0 1998.3 2001.3 2002.3 2003.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 2004.3 20.0 18.6 16.0 36,251 29,893 28,155 25,737 27,129 12.0 8.0 6,754 0 1991.3 2.8 846 2001.3 2.3 635 2002.3 1.8 466 2003.3 4.0 1.2 312 2004.3 0 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 47 Corporate Governance 48 48 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 49 Corporate Governance 50 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 51 10,000 8,000 8,518 8,910 8,391 8,324 8,561 2000.3 2001.3 2002.3 2003.3 2004.3 6,000 4,000 2,000 0 250 5.0 250 200 174 150 50 0 52 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 3.0 129 100 2.8 2.0 74 41 0.5 2000.3 1.6 2001.3 4.0 0.9 2002.3 2.0 1.0 0 2003.3 2004.3 100 50 39 0 –0.4 –50 –100 2.0 97 1.1 –0.9 –74 2000.3 0.5 55 0.6 1.0 0 –1.0 –32 –2.0 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 53 54 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 500 400 300 358 351 342 352 326 200 332 298 269 272 176 100 0 2000.3 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 55 400 4.0 3.3 300 200 282 3.0 270 3.3 280 3.2 3.3 267 285 3.0 100 1.0 0 0 2000.3 2001.3 12,000 2002.3 2003.3 2004.3 40.0 11,048 9,000 9,372 6,000 9,642 9,211 22.5 9,080 30.0 21.1 20.0 16.8 16.4 3,000 1,539 1,617 2,480 17.5 1,611 1,917 0 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 10.0 0 2000.3 56 2.0 2001.3 2002.3 2003.3 2004.3 5,000 4,000 47.8 4,476 46.0 4,435 3,000 41.6 4,601 50.0 47.6 39.9 40.0 3,630 30.0 4,388 2,000 20.0 1,000 10.0 0 0 2000.3 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 57 58 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 59 60 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 61 62 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 63 64 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 65 66 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 67 68 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 69 70 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 71 72 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 73 74 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 75 76 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 77 78 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 79 80 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 The Board of Directors Fuji Electric Holdings Co., Ltd. Certified Public Accountants Hibiya Kokusai Bldg. 2-2-3, Uchisaiwai-cho Chiyoda-ku, Tokyo 100-0011 C.P.O. Box 1196, Tokyo 100-8641 Phone: 03 3503-1100 Fax: 03 3503-1197 We have audited the accompanying consolidated balance sheets of Fuji Electric Holdings Co., Ltd. and consolidated subsidiaries as of March 31, 2004, 2003 and 2002, and the related consolidated statements of operations, shareholders’ equity, and cash flows for the years then ended, all expressed in yen. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Fuji Electric Holdings Co., Ltd. and consolidated subsidiaries at March 31, 2004, 2003 and 2002, and the consolidated results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan. The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2004 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 3 to the consolidated financial statements. June 25, 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 81 82 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 83 1,500 900 20.0 1,347 1,200 1,175 1,104 1,191 13.2 13.2 14.3 15.8 600 1,292 15.1 12.0 10.5% 8.0 300 2003.3 4.0 0 0 2000.3 2001.3 2002.3 4.1% 12.5% 7.9% 16.0 2003.3 2004.3 14.9% 21.6% 60.0% 2004.3 68.5% 1,000 986 886 852 800 734 714 2002.3 2003.3 600 400 200 0 2000.3 84 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 2001.3 2004.3 300 250 200 150 100 50 0 257 179 192 160 125 2000.3 2001.3 2002.3 2003.3 2004.3 200 161 150 107 100 119 125 2002.3 2003.3 88 93 71 50 0 2000.3 2001.3 2004.3 200 150 163 100 50 52 36 0 2000.3 2001.3 2002.3 2003.3 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 85 400 300 200 100 90,000 60,000 30,000 0 2003.4 86 2003.5 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 2003.6 2003.7 2003.8 2003.9 2003.10 2003.11 2003.12 2004.1 2004.2 2004.3 FUJI ELECTRIC HOLDINGS CO., LTD. Annual Report 2004 87 http://www.fujielectric.co.jp