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2026 President's New Year Message (Summary)

Happy new year

Looking back on 2025, the international community continued to face numerous geopolitical challenges, with persistent instability stemming from the Ukraine situation and the ongoing conflict in the Middle East. Major political transitions and policy shifts in key nations led to significant fluctuations in the global political and economic environment. Exchange rates, interest rates, and prices experienced substantial volatility, making it a year marked by heightened uncertainty for corporate management.
Domestically, however, positive movements were observed, including sustained wage increases, robust capital investment, and a recovery in consumption, all supporting the overall economy. The Nikkei Stock Average reached a historic high above 50,000 points, signaling forward momentum.

< Regarding Our Company's Performance >
During the first half, robust investment in data centers driven by the proliferation and expansion of generative AI significantly boosted profits in the Telecommunication Systems Business Unit, exceeding plans substantially. While the Electronics Business Unit saw reduced profits due to delayed productivity improvements and intensified competition, the Automotive Products Business Unit maintained profitability. Power Systems Business Unit also secured increased profits, supported by steady domestic demand for electric cables, higher shipments of high-margin products, and improved selling prices.As a result, the group's first-half results showed substantial increases in both revenue and profit compared to the plan, achieving record highs for the first half in net sales, operating profit, and ordinary profit.
Based on first-half progress, the company has revised its full-year earnings forecast upward. Consequently, the outlook for fiscal 2025 now projects record-high figures across the board: net sales of ¥1,109 billion, operating income of ¥179 billion, ordinary income of ¥184 billion, and net income of ¥132 billion.Net sales are projected to exceed ¥1 trillion for the first time, and net income is also expected to surpass ¥100 billion for the first time.

<Safety>
Following the major disaster that occurred in April 2016, our group has been committed to intrinsic safety. Safety is the top priority that supersedes all other business activities. If you have any concerns, no matter how small, please share them with your colleagues or supervisor without hesitation. Let us work with strong determination to enhance each individual's safety awareness and achieve a safe workplace with "zero unacceptable risks."

<As we approach 2026>
This year marks the start of a new mid-term management plan. The next mid-term management plan, currently under development, will be a three-year plan covering the period up to fiscal year 2028, with an announcement scheduled for May.
Over the past five years, our company has undergone significant transformation, expanded its business performance, and seen heightened expectations both internally and externally. Amidst this, we stand at a crucial crossroads for our future. Stopping change risks reverting to our former state. Therefore, the next mid-term management plan will steer us toward "aggressive selection and concentration," accelerating resource allocation to growth areas.

Moving forward, we will continue to challenge ourselves, guided by our DNA of "Enterprising Spirit" to take on new challenges and "Fujikura, a Technology Leader" to pursue advanced technologies. Through creating customer value and contributing to society, we will strive to become a high-profit company with a promising future. Let's all work hard together.