Message from the President We aim to become a corporate group that is appreciated by customers and highly evaluated by society. Fujikura Group CSR Philosophy All of us at Fujikura believe that our Corporate Social Responsibility (CSR) is to aim to achieve both "ongoing growth for our group" and "a sustainable society" through corporate activities that are "people-friendly and earth-friendly," in accordance with our Group Corporate Philosophy MVCV. This way of thinking has been the basis for all of our corporate activities since undertaking authentic CSR endeavors, and we aim to carry it forward unchanged. Our Pledge to Reform Work Styles: Employees as assets We are currently at work on efforts to address "work style reforms," a topic recently receive widespread attention. We must continued to enhance our competitive edge despite Japan's declining birth rate and aging population, as well as the continued progress of globalization. Thus, it is vital that we build an organization where all personnel can shine to their fullest, regardless of nationality, race, sex, creed, age, or work history. I am personally always aware that our "employees as assets." To keep the Fujikura group a collection of healthy, creative individuals in both mind and body, we will work ever more intently on diversity promotion. The Challenge of Global Conservation: Looking ahead to 2050 International organizations like the Organization for Economic Co-operation and Development (OECD) currently predict that the earth is approaching a dangerous climate situation, and have issued warnings. Given our global business, the Fujikura Group issued our "Fujikura Group Environmental Challenge 2050" with an eye toward the year 2050 in the future. This vision coordinates four challenges we aim to undertake; we are currently at work on reducing our factory CO2 emissions to zero, the most demanding of these challenges. Support for "Social Welfare Corporation Fujikura Gakuen" - the "Starting Point" for our Contributions to Society - "Fujikura Gakuen", a facility founded by Fujikura's founder's younger brother Harukichi Nakauchi, using his personal fortune roughly 100 years ago. The facility acts to serve persons with intellectual disabilities, and as the "starting point" for our contributions to social welfare, it also society. It also continues to draw support from Fujikura companies and employees alike in the form of donations and volunteer work. Out of our hope to share our longstanding efforts in this sphere with our stakeholders, we distributed cookies made at "Fujicafe", an independent facility managed by the Fujikura Gakuen, to all of our stockholders at the General Meeting of Shareholders this year. We will continue to focusing on societal contributions in the future, in addition to continuing our support for the Fujikura Gakuen. Securing Year-on-year Operating Income Increases FY2016 net sales fell 3.6% year-over-year to 653.7 billion yen, while operating income experienced a level 4.9% growth to 34.2 billion yen. The consolidated business plan for FY2017 projects net sales of 700.0 billion yen (7.1% year-on-year growth) and operating income of 38.0 billion yen (11% growth). Furthermore, we have also additional measures to strengthen the corporate governance structure, such as increasing the number of outside directors and transitioning to a "company with audit and supervisory committee." In the Fujikura Group, we aim to establish corporate governance, win ever-higher regard with regard to environmental and social contributions, and ensure the continuation of our business. Each one of our team members holds high goals and lofty ambitions, and strives to make us "We aim to become a corporate group that is appreciated by customers and highly evaluated by society" through behavior that demonstrates our responsibility to society. I hope for your continued understanding and supporting us in the future. Fujikura expressed its support for the United Nations Global Compact (UNGC) in September 2013 and has been involved in the activities.
