Message from the Director, President and CEO

Fujikura Group has formulated a three-year Mid-Term Plan that will begin in fiscal year 2026. We position fiscal year 2026, when this plan begins, as the starting point for Fujikura's "fourth founding."

Since its founding in 1885, Fujikura has experienced continuous growth through its first, second, and third foundings. However, in fiscal year 2019, it recorded a net loss of 38.5 billion yen, plunging it into what could be described as a management crisis. Subsequently, it embarked on management reforms and business structure reforms, achieving a V-shaped recovery, and in fiscal year 2025, consolidated sales will exceed 1 trillion yen for the first time since its founding.

To move towards the next stage of growth, Fujikura Group has formulated a new Corporate Philosophy and will proceed with business development centered on its core business areas and the exploration of new business areas.

The business environment is changing at an unprecedented pace due to factors such as the evolution of AI and geopolitical shifts. To achieve further growth, we believe it is essential to anticipate these changes and continue transforming at an even faster pace than before. Therefore, we have positioned fiscal year 2026 as the starting point for our "fourth founding."

Since the management crisis in fiscal 2019, Fujikura Group has been advancing management reforms and business structural reforms starting from the "100-Day Plan." In this process, we have returned to Fujikura's DNA of "pioneering spirit" and "Fujikura, a Technology Leader," consistently communicating that responding to customer and societal demands with advanced technology ultimately leads to business, and that what is necessary for this is that we ourselves must first change.

Through communication with Fujikura employee, I've noticed a growing mindset throughout organization of taking problems and difficulties personally and taking initiative to solve them. I believe this change is what has driven us to overcome the crisis and achieve reform.

As a result, in the 2025 Medium-Term Management Plan, we achieved many of the goals that we had aimed to accomplish over three years in the second year, and in the final year, fiscal year 2025, we were able to achieve results that far exceeded the targets of Mid-Term Plan, such as consolidated sales exceeding the 1 trillion yen mark.

However, organization risk reverting to their old ways if they don't continuously adapt. I believe that now, while business environment is favorable, is the time to take a gamble. Otherwise, we risk not only missing out on significant opportunities for the future, but also jeopardizing our current position. We cannot survive if we do not change simply because it is difficult. Isn't that the kind of era we are living in now?

Along with the formulation of 2028 Mid-Term Plan (hereinafter referred to as the "28 Medium-Term Plan"), we have also revision Fujikura Group 's Corporate Philosophy MVCV and materiality.

Fujikura employee Under its new mission statement—"To create value for customer and contribute to society through "Tsunagu" Technology™"—Corporate Philosophy has established a vision to "Realize a digital society and carbon neutrality through the global Monodukuri capabilities" and has defined Innovation, Motivation, and Communication as its core values.
Corporate Philosophy During the “revision,” we strongly recognized the need to clarify the specific areas in which Fujikura Group operates. Accordingly, in the 28th Mid-Term Management Plan, we defined information infrastructure, information storage, and information terminals as the core business areas where Fujikura Group can contribute to the development of a digital society.

The driving force behind this is generative AI, and the underlying data center. As data center expand, we expect to see improvements in network infrastructure, including optical communication infrastructure, as well as the development of power transmission and distribution infrastructure to support the increasing demand for electricity. Furthermore, the proliferation of CASE (Connected, Autonomous, Shared, Electric) technologies and physical AI robots will further boost the demand for advanced information and communication technologies.

We believe this trend of expanding demand will continue, providing a significant tailwind for Fujikura Group 's information and communication, electronics, and energy business. This is not a defensive strategy, but rather a proactive selection and focus aimed at future growth.

At the same time, we will actively explore new business areas such as fusion energy (fusion energy power generation) and semiconductor and new material processing as new business areas for the future. I see great potential in fusion energy. When technologies that change the world are created, their demand and market can expand dramatically. In fact, we are experiencing this. Optical Fiber was exactly like that.

I believe Fusion Energy has similar or even greater growth potential, and I believe it has the potential to lead to a major business that will become the next pillar of Fujikura's business.

Furthermore, high-temperature superconducting wires are expected to have a wide range of applications, not only in the fusion energy field, but also in mobility, medical, and other fields. Fujikura possesses high technological capabilities and competitiveness, and we intend to further refine these to enhance our overwhelming dominance in this market.

The reason we added the vision of achieving "carbon neutrality" alongside "digital society" as part of our new Corporate Philosophy is because there is currently an imbalance between a highly digital society and carbon neutrality.

The expansion of data center is also a trigger for our growth, but the reality is that we consume a large amount of electricity, much of which depends on fossil fuels. We need to strike a proper balance, and we believe there are also business opportunities for Fujikura. Both existing business and new business always view business (profitability) and environmental response (environmental impact) as two wheels, balancing them to achieve both. This is also a lesson we learned from the management crisis seven years ago.

In revision our materiality, we have organized business materiality and foundational materiality. In revision, we focused not only on listing general environmental and social issues, but also on identifying issues that only Fujikura should address. By incorporating feedback from business units, we have created materiality that emphasizes "Fujikura's unique identity."

business materiality includes "digital society" and "carbon neutrality," which are outlined in Corporate Philosophy vision. These are important themes for Fujikura Group to achieve both the resolution of social issues and growth through business.

In its core materiality, Fujikura has identified four areas: "management foundation," "Monodukuri capabilities," "human resource," and "social responsibility," defining specific challenges to support sustainable growth. Improving management is a particularly important theme for Fujikura, given its experience with a management crisis.

Furthermore, strengthening human resource is essential to maintaining our top position in the industry. Fujikura's technological capabilities are supported not only by the technology visible in our products, but also by manufacturing technology and human resource. Because the important technologies change with the times, we believe that instilling technology in people and continuously passing it down is the foundation that supports "Fujikura, a Technology Leader."

Fujikura Group 's ability to overcome its financial crisis, achieve a V-shaped recovery, and become a trillion-yen company was not solely due to our efforts. The market environment surrounding Fujikura Group also played a significant role. In particular, the rapid development and widespread adoption of generative AI, and the resulting expansion of data center demand, have greatly boosted Fujikura Group 's growth.

data center construction will likely expand globally, moving beyond its current US-centric focus. As the number of data center increases, the demand for fiber optic cables connecting them will also grow. We are laying the groundwork for the future, anticipating these growth opportunities.

Fujikura Group still has significant room for growth. Please look forward to Fujikura's future from a medium- to long-term perspective.