March 27, 2008
Corporate Name: Fuji Electric Holdings Co. Ltd.
Representative: Haruo Ito, President and Representative Director
(Ticker: 6504 TSE / OSE / NSE / FSE)
Contact: Yoshitada Miyoshi, General Manger, Corporate Communications
(Tel: +81-3-5435-7206)

Fuji Electric Reaches an Agreement in Principle with Schneider Electric Defining the Basic
Understanding with Respect to the Formation of a Joint Venture in the Field of Electrical
Distribution and Industrial Control Equipment

Fuji Electric Holdings Co. Ltd., headquartered in Shinagawa-ku, Tokyo (“FHC”), today announced that it
had reached an agreement in principle with Schneider Electric Industries SAS, headquartered in
Rueil-malmaison, France (“Schneider Electric”), defining their basic understanding in relation to creation
of a joint venture in the field of electrical distribution and industrial control (ED&C) equipment products.

1.

Objectives for formation of the Joint Venture
Fuji Electric FA Components & Systems Co. Ltd. (President: Mitsunori Shirakura, Headquarters: Chuo-ku,
Tokyo) (“FCS”), a core operating company of FHC has engaged in ED&C equipment business as one of its
core businesses and established a position as one of the most acclaimed ED&C companies in Japan and
other Asian countries.
Schneider Electric is a recognized world leader in the field of ED&C and Automation with a strong
presence in Europe, Asia and North America offering an unmatched worldwide support and service
network.
By forming a joint venture under the shared business strategy for expanding business, FCS and Schneider
Electric will further strengthen their ED&C products business through combining competitive advantage of
the each company. The both companies will supply each other complementary products that would leverage
its own strengths and share the both companies’ global network to allow their shared customers such as
Japanese multinational corporations to benefit from a wide range of services and support network
world-wide.
The Joint Venture will aim at becoming an industry-leading company in terms of quality, cost and product
lineup and create new demand by expanding solution business with its strong marketing, consulting and
technological capabilities accumulated through operations in Europe, North America and Japan. We believe
that this new company will position us to be an unsurpassed global leader in the key product areas in Asia.

2.

Detail of Basic Understanding
FHC and Schneider Electric have reached an agreement to form a new joint venture in association with
ED&C business of the subsidiaries of the both companies, FCS and Schneider Electric Japan. Under the
basic agreement, FHC will hold a majority 60% stake in the company, with Schneider Electric Japan
Holdings (Chief Executive Officer: Pierre Leveque, Headquarters: Taito-ku, Tokyo) (“SEJH”) holding the
remaining shares.
The both parties will continue discussions towards a definitive agreement with intent to establish the Joint
Venture in July 2008.
1)

Schedule for establishment of the Join Venture
Board Meeting for approval of Memorandum of Understanding (“MOU”)
March 27, 2008
Conclusion
of
MOU
March
27,
2008
Foundation
of
the
Join
Venture
July
2008
Note: the date of foundation is subject to change upon consultation between the both companies.
2)

Overview of the Joint Venture
Corporate name: TBD
Representative: TBD（Will be appointed from Fuji Electric Group）
Capital amount: TBD
Location: Chuo-ku, Tokyo
Scope of business: Development, manufacture and sales of and service provision for electrical
distribution and control equipment
Sales: ¥70 billion (As of foundation)
Number of employees: Approximately 3,000

3.

Overview of Concerned Companies

Corporate Name Fuji Electric Holdings Co., Ltd.
Fuji Electric FA Components & Systems Co., Ltd.
Year of Establishment
August 1923
October 2003
Registered Location
Kawasaki-shi, Kanagawa
Shinagawa-ku, Tokyo
Representative
Haruo Ito, President and Representative Director
Mitsunori Shirakura, President and Representative Director
Capital
¥47.5 billion
¥10 billion (wholly-owned by FHC)

Scope of Business
Holding Company
Development, manufacture and sales of and service provision for electrical distribution, control equipment, and drive and programmable control equipment
Sales
Operating income: ¥16.9 billion (for fiscal year ending March 31, 2007)
Unconsolidated sales: ¥102.7 billion Consolidated sales: ¥193.9 billion (for fiscal year ending March 31, 2007)
Number of Employees
141 (as of the end of March 2007)
1,908 (as of the end of March 2007)

Corporate Name Schneider Electric Industries SAS
Schneider Electric Japan Holdings Ltd.
Year of Establishment
1994 1975
Registered Location
Rueil-malmaison, France
Taito-ku, Tokyo
Representative Jean-Pascal
Tricoire,
Chief
Executive
Officer
Pierre Leveque, President
Capital
€896 billion
¥1.384 billion (wholly-owned by Schneider Electric Industries SAS)
Scope of Business
Development, manufacture and sales of and service provision for electrical distribution, automation and control equipment
Holding Company
Sales
Consolidated sales: €17.0 billion (for year 2007)

Number of Employees
Approximately 120,000 (world-wide)


FCS and Schneider Electric have closely worked together for complementary supply of products in ED&C
equipment business since November 2003 and established the joint venture manufacturing circuit breakers
in Dalian, China in March 2004.

4.

Business Forecast
FHC and Schneider Electric will continue to have discussions toward a definitive agreement for creating
the Joint Venture and keep working together to obtain necessary regulatory approval both in and outside
Japan, including that from anti-trust authority, in order to establish the new company in July 2008.
The consolidated and unconsolidated business results for the fiscal year ending March 2008 will not be
affected by this transaction. Expected impact on the business performance for the next fiscal year will be
disclosed as soon as it is confirmed.