Message from the President Thank you very much for your continued support. In response to the rapid and significant deterioration of our business performance in fiscal 2019, Fujikura Group had positioned the second half of FY2020 and beyond as the “operational turnaround phase,” formulated a business revitalization plan, the "100-Day Plan," and decisively implemented business structural reforms without sanctuary. We had completed the “100-Day Plan” by the end of FY2021 and had entered a “Sustainable Growth Phase” as the new Fujikura from April 2022. In the fiscal year 2022, although under the complicated business environment of rising raw material prices and continued supply constraints, with the tailwind of a weaker yen, the Group's net sales increased 20.3% from the previous year to 806.5 billion yen and operating income increased 83.2% to 70.2 billion yen, and both net sales and operating income reaching record highs. In the Telecommunication Systems Business, our strategy of focusing on the optical wiring solution business based on SWR®/WTC®, our innovative optical cables, was successful. Net sales and profit grew significantly as we captured demand for developing telecommunications infrastructure, mainly in Europe and the United States, and for expanding data center facilities due to increased global data traffic. In the Electronics Business, the operating income doubled from the previous year to 27.6 billion yen, thanks to strong sales of connectors as well as FPCs, where we shifted our order strategy to high value-added products that take advantage of our strengths. We believe that the above results are proof of the various measures taken by the entire group as part of the "selection and concentration" of existing businesses without sanctuary during the business revitalization phase. In May 2023, we announced the "2025 Mid-Term Management Plan (25 Mid-Term)," a three-year mid-term management plan ending in FY2025, with the aim of achieving sustainable growth of our group and further enhancing corporate value. Under the 25 Mid-Term Plan, we have positioned three areas where our group's technologies can be utilized, namely "information infrastructure," "information storage," and "information terminal," as our core business areas, and will concentrate our management resources in these areas to become a highly profitable company in order to realize a more advanced information society in the future. In addition, toward Beyond 2025, we will promote the commercialization of superconductivity and fiber laser technologies, as we see "carbon neutrality," which contributes to the realization of a sustainable society, as an opportunity for the creation of new businesses. In FY2023, we anticipate a temporary slowdown in demand due to concerns of economic recession mainly overseas, including rising interest rates and global inflationary pressures mainly in Europe and the United States, but the entire group will work together to achieve the single-year plan and aggressively make strategic moves toward the final year targets of the 25-mid-term plan: net sales of 825.0 billion yen and operating income of 85.0 billion yen. Fujikura Group will continue to create value for our customers and develop a society based on our DNA of "an 'enterprising spirit' to take on new challenges" and "technological Fujikura" to explore advanced technologies. We look forward to our shareholders' and investors' continued support and encouragement. Director, President and CEO Naoki Okada
