Happy new year
Looking back at 2024, the international situation remained tense due to the continued Russian invasion of Ukraine, the Israeli-Palestinian conflict, and the collapse of the Assad regime, but it was also an election year in which presidential and general elections were held in many countries and regions, including the United States. In this situation, there were large fluctuations in exchange rates, prices, and interest rates, making the year even more uncertain about the future. However, looking at the domestic economy, there were also positive developments, such as capital investment and wage increases that reached their highest levels in decades, and the Nikkei average stock price reached the 40,000 yen range for the first time.
<About our business performance>
In the first half of the year, data center investment due to the spread and expansion of generated AI was brisk, and profits from information and telecommunications business units grew significantly. In addition, Automotive business units, Electronics business units, and Energy business units also exceeded initial forecasts, achieving record high figures for net sales, operating income, and ordinary income. For the second half of the fiscal year, although some markets are expected to face a difficult environment, we expect strong demand for data center to continue, and we have revised our initial plan upward. As a result, for FY2024, we forecast net sales of 880 billion yen, operating income of 104 billion yen, ordinary income of 103 billion yen, and net income of 62 billion yen, all of which will be record highs.
<Safety>
Keep in mind that safety and health are the basis of all activities and an important corporate foundation, and strive to create a safer work environment by continuing proactive improvement activities. In addition, an "open organization culture" is very important to invigorate safety and health activities and make them sustainable efforts. Regardless of age, position, or title, let's respect each other and activate two-way communication without any pretense.
<As we approach 2025>
This year is the final year of the 25-year Mid-term Plan. In fiscal 2024, the second year, we expect to achieve the mid-term plan's targets one year ahead of schedule for key indicators such as sales, operating profit, equity ratio, ROE, and ROIC. In fiscal 2025, the final year, we aim to achieve results that significantly exceed the mid-term plan, and we will also sow the seeds for the future beyond the 25-year Mid-term Plan in order to leave a better business for the next generation.
In addition, 2025 will be a milestone year for Fujikura, marking its 140th anniversary. Since we began manufacturing silk and cotton-wrapped wire in 1885, we have expanded business to this day by responding to the social challenges of each era and creating new products and technologies. This is the result of the tireless efforts of our predecessors and current employees, and we would like to express our sincere gratitude. In the future, we will continue to take on the challenge of making Fujikura a highly profitable company with a bright future by creating value for customer and contributing to society, with our "enterprising spirit" that challenges new things and "Fujikura's technology" that explores advanced technology in our DNA. Let's all work hard together.
