CSR

In fiscal 2014, all Group members made a concerted effort to respond to the maturation and shrinkage of the Japanese infrastructure market and to bring recovery to the electronics business as the two priority tasks to be addressed in the ever changing business environment. As a result, we were able to achieve great results in the year.

For our measures implemented towards Japanese infrastructure industries, the mature market continued to shrink, and in response, we consolidated our manufacturing bases, restructured the Sakura Plant (our largest manufacturing base) to make better use of it, and reformed our sales and logistics operations for the selection and concentration of businesses to improve profitability. As for the electronics business, we were able to re-acquire trust from customers on a global scale in fiscal 2014, achieving recovery of the manufacturing facilities that were damaged by the flood in Thailand in 2011. As a result of implementing these measures proactively, net sales of the Fujikura Group increased by 11.9% year on year to 661.5 billion yen, operating income increased by 23.2%, to 25 billion yen, and net income increased by 266.5%, to 12.2 billion yen. We are thus growing into a corporate group that can fulfill its social responsibility financially as well.
In fiscal 2015, which is the final year of the 2015 Mid-Term Business Plan, we should bear fruit from the efforts we made to attain the targets set in the plan. To this end, we will achieve the following three priorities while accelerating the launch of new businesses: (1) foster globalization of the infrastructure business; (2) further improve the profitability of the electronics business; and (3) expand the automotive products business and increase its profitability.

The Fujikura Group deems it as its CSR to achieve 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 the global environment based on the Group's Corporate Philosophy MVCV.
For implementation of the CSR philosophy, we are pressing forward with the Fujikura Group priority CSR measures (25 priority items) for completion by the end of fiscal 2015. In the following, I will mention about some of these measures.
First, we have enhanced the content of the CSR Integrated Report, which we began to create based on the International Integrated Reporting Framework in the previous fiscal year. We worked to improve this second CSR Integrated Report to meet the expectations of shareholders and investors in a more outstanding manner. Second, we started to conduct specific activities to achieve the Group's long-term vision for biodiversity (Roadmap 2030), receiving advice from experts. Third, we had our environmental performance data verified and assured by an independent third party, which helped to increase the credibility of the Report.

The Fujikura Group will continue to proactively implement measures in a socially responsible manner backed by the strong commitment of its employees, aiming 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 understanding and continued support.