Happy new year
It has been a turbulent start to the year, with the news of the Noto Peninsula earthquake in Ishikawa Prefecture on New Year's Day and the subsequent news of an airplane catching fire at Haneda Airport the following day. We pray for the repose of the souls of those who lost their lives in these disasters, and offer our condolences and sympathies to those affected and their families. We pray for a speedy recovery and reconstruction.
Looking back at 2023, the COVID-19 pandemic, which has had a major impact on our lifestyles and values, was classified as Class 5 under the Infection Control Act, and various events that had previously been restrained or restricted were revived, while domestic and international travel became more active, making this a year in which we could truly feel the changes to the so-called post-coronavirus era. In the domestic economy, the Nikkei Stock Average recovered to the 33,000 yen range for the first time in about 33 years in June, and attention is focused on the future outlook for the Japanese economy as it moves toward a full-scale post-coronavirus economic recovery. On the other hand, looking at the world, the international situation has become even more unstable and uncertain, with Russia's continued invasion of Ukraine and the outbreak of the Israel-Hamas conflict.
<Our Group's business situation>
In the first half of the fiscal year, the Group's performance was affected by the effects of intensifying competition in the Electronics business and the decline in demand due to people staying at home, but thanks to the tailwind of the weak yen and favorable domestic demand in the Energy business, the Group achieved its initial plan for the first half of the fiscal year with sales of 399.1 billion yen and operating profit of 30.8 billion yen. In the second half of the fiscal year, the impact of the postponement of investments by US telecommunications carriers due to BABA (Build America, Buy America) in the Information and Communications business and the prolonged inventory adjustment in the electronic components market in the Electronics business has been anticipated, and the full-year forecast has been lowered from the initial plan of sales of 770 billion yen and operating profit of 60 billion yen to sales of 760 billion yen and operating profit of 54 billion yen. However, the unit will strive to achieve its second-half plan by quickly responding to changes in business environment in each division and steadily implementing various measures.
<Regarding the inappropriate case at the U.S. subsidiary >
Last year, it was discovered that a former director of our company, who was the CEO of our US subsidiary, had illegally acquired and used subsidiary, strengthening governance system and internal regulation of each business company within our group, and providing education to executives and employees.
<Safety and Health>
Health and safety management is the basis of all our activities, an important part of our company's foundation, and our corporate value. Since the serious accident that occurred in April 2016, we have been promoting intrinsic safety activities, and the number of reported accidents has been on a downward trend in recent years. Please strive to create an open and friendly organization, and let's work together as a group to realize a safe and comfortable working environment and promote the maintenance and promotion of physical and mental health.
<As we approach 2024>
The year 2024 will be an important year for accelerating the growth strategy of the "2025 Mid-term Management Plan." In order to survive the fierce global competition and maintain our superiority, Fujikura Group must come together and aim to become a highly profitable company with dreams, based on our "enterprising spirit" and "Fujikura's technology."
