CSR

In 2011, we faced a series of disasters, including the Great East Japan Earthquake and tsunami that occurred on March 11, the subsequent accident at the Fukushima Daiichi Nuclear Station, and the flooding in Thailand in October, six months after the disaster in Japan. Due to the flooding in Thailand, we had to suspend operations of our nine electronic component manufacturing bases in the country, which had been built up by our forerunners since 1984. We made a concerted effort to resume operations of all flooded bases toward the recovery of the electronics business, which is one of the mainstays of the Fujikura Group. We have already resumed operations of all bases and are now implementing measures toward the full recovery of the business, including establishing a new production base.

Fiscal 2011 is indeed an important year for the 2015 Mid-Term Business Plan, and in the present challenging business environment, we will continue pursuing the target of achieving a 6.5% or higher operating profit margin, as initially set in the plan. To this end, we will strive to achieve full recovery of the electronics business as early as possible and further foster our "Focus & Deep (selection and concentration)" strategy. At the same time, we will accelerate implementation of our global strategy for the telecommunications and automotive components businesses as well as the strategy for the search and development of businesses in new fields.

The Fujikura Group officially started its CSR initiatives in fiscal 2009. Fiscal 2011 is the final year for the "priority CSR measures" that we have been focusing on for over three years. The entire Group has proactively implemented these measures, including fostering the achievement of our Corporate Philosophy MVCV to reform our corporate culture for the "Third 60 Years; raising employees' CSR and environmental awareness through CSR campaigns; proactively dispatching information to and enhancing communication with stakeholders; formulating business continuity plans (BCPs) in closer cooperation with customers in the aftermath of the Great East Japan Earthquake; implementing occupational safety and health management systems to provide safe and sound workplaces including the creation of a bio-garden named "Fujikura-Kiba Millennium Woods" to protect biodiversity in cooperation with local inhabitants and the establishment of a better mental health system; and fostering diversity by making greater use of female human resources and increasing the employment rate of people with disabilities. In particular, in fiscal 2011, we made efforts to protect human rights in relation to the issue of conflict minerals in the Congo.

The Fujikura Group deems as its corporate social responsibility (CSR), the achievement of both the creation of a sustainable society and the sustainable growth of the Group, by conducting corporate activities that are friendly to people as well as to the global environment. In 2011 we faced difficulties due to the Great East Japan Earthquake and the flooding in Thailand, but we were lucky to be able to receive support and encouragement from many around us, including our customers. Their kindness has made us recognize once again that we are not alone in society and how it is important to be a part of society. I would like to express my heartfelt gratitude to all those who have kindly supported us in overcoming our hardships.

The Fujikura Group will continue to implement measures in a socially responsible manner and with strong commitments made by its employees in order to achieve the targets of the Mid-Term Business Plan toward fiscal 2015, which is the final year of the plan, and to attain even higher targets in the ensuing years. Through these measures, we aim to become a corporate group that is appreciated by customers and highly evaluated by society. On behalf of our Group, I would like to ask for your kind understanding and continued support.