Corporate Profile

Company name	Fujikura Ltd.
Established	February, 1885
Incorporation	March, 1910
Paid in Capital	53.0 billion yen (as of March 31, 2018 Consolidated)
Net Sales	740 billion yen (FY2017, Consolidated)
President & CEO	Masahiko Ito
Head Office	1-5-1, kiba, koto-ku,Tokyo 135-8512 Japan
Plants	Sakura, Suzuka, Numazu, Ishioka
R&D	Tokyo, Sakura
Branch/Business Office	Osaka, Nagoya / Utsunomiya, Toyota
Overseas	U.S.A., U.K., Singapore, Malaysia, Thailand, China, Vietnam, India etc. 16 other countries
Number of Employees	58,422 (as of March 31, 2018 Consolidated)
Main Business	Optical Fiber Cable, Optical Tele System, Tele System, Electronics & Automotive Components, Metal Cable & System, Metal Wires, Real Estate Business, etc.

Company History

Please refer to the following for the company history.

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Fujikura Group's Brand Logo

The history of the Fujikura Group's brand logo dates back more than 100 years ago to 1910, when Fujikura was reorganized from a partnership corporation to a joint-stock corporation. Subsequently in 1985, the Company established a new corporate mark in celebration of the 100th anniversary of its founding. Twenty-five years later in 2009, the present brand logo (registered trademark) was established and began to be used by Fujikura Ltd. first followed by its domestic consolidated subsidiaries in March 2011. Presently, the logo is also used outside Japan by the Company's wholly-owned subsidiaries.

The Fujikura Group's brand logo (registered trademark) is the most basic and essential tool used to communicate our brand image and is composed of the following three elements: the corporate symbol, the alphabetical letters "Fujikura" and the corporate color. The brand logo plays an important role as a symbol of the Fujikura Group and is designed to be regarded as proof of our reliability for customers and society at large and to attract more people to the Group.

The Fujikura Group is fostering its business in a number of countries around the world. In order to expand our business strategically in the global market, we are making a better use of our brand logo. At present, we have registered or are applying for registration of the logo in more than 150 countries.

Fujikura Group's Brand Logo

Fujikura Group Brand Logo Policy（March 2011）

The Fujikura Group defines a uniform worldwide brand logo in order to advance our business esstrategically at the global level.

Group Network (as of the end of March 2018)

Global Network

Number of Employees

Number of group employees / Number of employees by region

Group employee ratio

Business Introduction

The Group has global operations with four companies

Power & Telecommunication Systems Company

Company Outline

The network is evolving to NGN (Next Generation Infrastructure Network) by seeking "fast", high quality, large capacity "connection". The optical fiber that supports it, the Fujikura group is always the world's top level. The optical fusion splicer that connects the optical fiber with extremely low loss is "the world's No. 1", and we offer a total solution of light.

Contributing to the stable supply of electric energy that supports the foundation of society is our starting point since our founding. The Fujikura Group, which delivers essential products for power infrastructure globally, from power cables and overhead power transmission lines to general purpose low voltage cables and industrial cables, has earned high praise as the world's top runner.

Major Products

Optical Fibers / Optical Fiber Cables
Fusion Splicer
Optical Cables with Connectors
Network related Products
Electric Power Cables
Industrial Cables
Eco Cables
Enginering

Management Envrionment

Fujikura is working to reallocate resources to high-growth areas and implement structural reform in its business to create a business structure that is highly profitable and has a powerful reinvention. During FY2018 we will begin to reap the benefits of those efforts.

Investment in data centers, mobile, FTTx, and other types of telecommunications infrastructure was robust in FY2017 and demand for optical fiber grew, mainly in China and North America. We expect the global optical fiber shortage to persist in FY2018 as well, and are working to add capacity for optical fiber and optical cable in light of these trends in demand.

Rapid growth in the electrical infrastructure market is projected in Myanmar and other countries in Southeast Asia and Brazil and neighboring countries in FY2018. Fujikura will work hand-in-hand with partners in each country to pursue EPC business (Engineering, Procurement, and Construction).

New Product Initiatives

6,912- Optical Fiber Cable (SWR®/WTC®)	Ultra-High-Density SWR®/WTC® Wiring Solutions	Low Wind-Pressure Low-Loss Overhead Transmission Conductor

Fujikura has developed Spider Web Ribbon™/Wrapping Tube Cable™ (SWR™/WTC™) with density highest in the world, small diameter, light weight and excellent workability. One WTC™ has 6,912 fibers which is the largest number ever in the world.	Together with ultra-high-density SWR™/WTC™, we lined up closures and patch panels which offer higher capacity while being compact and less time for installation.	The use of the polygonal structure reduces wind pressure and increases the aluminum cross-section. This reduces electrical transmission loss and reduces the amount of CO2 generated from thermal power generation.。

Electronics Business Company

Company Outline

Electronic components such as printed circuits, electronic wires and connectors are delicate "nerves" for electronics products that are small and highly integrated. In this field, the Fujikura group also demonstrates its accumulated technical capabilities for many years, and it has become a top priority for FPC (Flexible Printed Wiring Board), which is the most suitable for compactness and light weight, in state-of-the-art equipment such as smartphones and digital cameras, To provide a one-stop solution to provide total. In addition, the Fujikura Group, which is developing globally, responds to customers' demands that diversify these high-reliability electronic components including high-density mounting from design to mass production, and supports the current electronics world.

Major Products

FPC
Connectors
Ultrafin Coaxial Cables
Thermal Solution
HDD Related Products

Management Envrionment

During FY2017, Fujikura achieved substantial growth in FPC and connector sales, mainly to smartphone manufacturers, which are key customers. We captured the stronger-than-expected demand in the first quarter, despite the fact that this is normally a slow period with very low demand, and remained extremely busy until the fourth quarter, when the pace of demand decelerated. This resulted in full-year net sales of 195.9 billion yen and operating income of 10.4 billion yen, far outperforming the previous fiscal year. Analysis showed that the strong performance was not only due to growth in demand. It was also the result of labor-savings from the automation we have pursued to this point and steady improvement in productivity, which led to small but continual incremental increases in earning power.

FY2018 is the middle year of the 2020 Mid-term Business Plan and we regard it as an important year to put the company on-track for achieving the plan goals. We will work to improve yields and quality for FPC and connectors, and deepen customer relationships through rapid response. In other segments of the electronic components business, we will proceed with a process of selection and concentration to build a business structure capable of sustaining stable sales and profits, and will work to create products that will become the cornerstones of the next-generation. We will also actively pursue introduction of the latest technology, such as IoT and AI, and work to enhance our competitiveness and achieve our plan targets of 214 billion yen in net sales and 14.0 billion yen in operating income.

New Product Initiatives

FPC for Daytime Running Lights (DRL)	Board-to-Board Connectors for Vehicles and Mobile Devices	Digital Ultra-Low Pressure Sensors (AL4 Series)

LED lights mounted on FPC take advantage of the flexibility of FPC and offer a superior sense of design for daytime running lights (DRL).	Fujikura developed board-to-board connectors to meet the demand for electronic control and miniaturization in vehicles and is expanding the variety in the product line-up. These highly reliable connectors have a lock mechanism to withstand vibration and prevent disconnection, and enable a more compact board mounting space.	Fujikura has developed a digital ultra-low pressure sensor. This product offers high-precision, ultra-low pressure detection (10 kPa or less) and is also capable of withstanding high pressure. It is used in respiratory medical equipment and industrial pneumatic equipment.

Automotive Products Company

Company Outline

The automobile industry that continues to develop into global. Automotive wiring harnesses are supporting automotive safety, security and comfort in the world of car electronics where electronic information is progressing. The Fujikura Group is accelerating the evolution of vehicles with a total wiring system including automotive wiring harnesses, in-car LANs, seat sensors, power supply connectors for electric vehicles, where demand is expected to increase in response to environmental issues. The Fujikura Group is a global production base that provides customers with a comprehensive wiring system for vehicles and is leading technology that "connects" the evolving world of car electronics.

Major Products

Wire Harnesses
Automotive Components
Seat Sensors

Management Envrionment

The automotive products business recorded net sales growth of 23.9 billion yen (up 18.0% YoY) over last fiscal year to 157 billion yen. The business had an operating loss of 3.1 billion yen as operating profit declined by 5.7 billion yen from last fiscal year, due to higher costs accompanying an increase in employee turnover at our plants in Eastern Europe during the first half.

The establishment of the Automotive Electrical System R&D Center within Fujikura’s R&D division has enabled us to undertake research that crosses beyond divisional boundaries. The center conducts research that is closely aligned with the customer perspective to develop and commercialize next-generation automotive electrical systems.

We expect net sales in fiscal year ending March 31, 2019 to be on par with last fiscal year, despite the impact from yen appreciation. Sales will be sustained by the launch of new vehicle models. We will work to improve productivity at our plants in Eastern Europe and all three regions will work as one team to achieve growth in operating income.

New Product Initiatives

Large-size Aluminum Conductor Cables	Ultrasonic Welding Terminals	Seat Occupancy Sensors (for S-harness)

Fujikura has developed large-size aluminum conductor cables to reduce the weight of high-current circuits in EV/PHEV. We will start mass production of this cable from September 2018.	We have also developed ultrasonic welding terminals and a connection method to enhance the reliability of electrical connections between large size aluminum conductors and the copper terminals.	The new seat occupancy sensor is installed on the spring located beneath the seat cushion material on top of the seat.It is more compact than existing sensors.

Real Estate Business Company

Company Outline

We are doing building leasing business through the operation of Fukagawa Gazalia, a city where people gather, such as offices, shopping and restaurants.

Management Envrionment

Our real estate business continues to achieve high occupancy rates and stable income owing to the advantage of locations that are near to central Tokyo. Fiscal year ended March 31, 2018 saw growth in both revenue and profit from the acquisition of one office building during the previous period. Operating income reached a record high of 5.5 billion yen. The plan for fiscal year ending March 31, 2019 projects a decline in both revenue and profit arising from temporary vacancies caused by the replacement of some tenants, but we expect results to rebound in fiscal year ending March 31, 2020 and beyond.

Participation in Industry Associations

Name of the Organization	Outline of the Industrial Association
Japan Business Federation (KEIDANREN)	The Japan Business Federation (KEIDANREN) is composed of 1,350 representative companies of Japan, 109 nationwide industrial associations, and 47 regional economic organizations (as of April 1, 2017). As a comprehensive economic organization, KEIDANREN contributes to the self-sustaining development of the Japanese economy and improvement in Japanese people’s quality of life by invigorating companies as well as individuals and local communities that support companies.
Japanese Electric Wire & Cable Makers' Association (JCMA)	The Japanese Electric Wire & Cable Makers' Association (JCMA) is an industrial association that contributes to the development of Japan's economy and improvement in the quality of life of people in Japan by fostering further development of Japan's electric wire and cable industry.
Japan Electric Cable Technology Center (JECTEC)	The Japan Electric Cable Technology Center (JECTEC) is engaged in the testing, examination, certification and research of the safety and reliability of electric wires and cables; human resource development in the technological field including overseas training; and information exchange and database establishment/utilization.
Japan Electronics and Information Technology Industries Association (JEITA)	The Japan Electronics and Information Technology Industries Association (JEITA) works to foster the sound manufacturing, international trade and consumption of electronic devices and components as well as the comprehensive development of the Japanese electronics and information technology industries, with a view to contributing to the development of Japan's economy and culture.
Optoelectronics Industry and Technology Development Association (OITDA)	The Optoelectronics Industry and Technology Development Association (OITDA) is committed to fostering the comprehensive growth and development of the optical industry and improving Japanese people's quality of life, thereby contributing to Japan's socioeconomic development.
Tokyo-to Koto Sangyo Renmei (labor insurance administration association)	The Tokyo-to Koto Sangyo Renmei (labor insurance administration association) is contributing to the development of the Koto City in cooperation with the city government and related organizations.
Communication Cable Wire Association	The Communication Cable Wire Association aims to ensure healthy development and progress in communication wires through mutual cooperation among members, and to contribute to its members' prosperity and improve public well-being. *FY2016 CEO Masahiko Itou is inaugurated as president

External Evaluation

	FTSE4GOOD Global Index incorporated (From June 2016)
	FTSE Blossom Japan Index (From June 2017) * Government Pension Investment Fund (GPIF) ESG Index Placement
	S&P/JPX Carbon Efficient Index * Government Pension Investment Fund (GPIF) ESG Index Placement
	Morningstar Socially Responsible Investment Index（From January 2016） * Morningstar Socially Responsible Investment Index
	Official induction into the Japan Business Federation's "1% Club" for social contributions (July 2017)
	Eruboshi Recognition (March 2017) Awarded Minister of Health, Labour and Welfare’s highest “acknowledgment of women’s workers (eruboshi)”
	Kurumin Recognition (November 2016) Awarded Minister of Health, Labour and Welfare’s Kurumin Mark for “corporate child support”

The Sweet Viburnum

In 1881, Zenpachi Fujikura moved to Kanda Awaji-cho as he looked for a way to recover from a series of business failures. The new residence was located adjacent to Kaku Shrine, which has a distinguished history. Zenpachi took care of the shrine's sacred tree (a sweet viburnum) every day, and perhaps due to this deed, he began to succeed in business. He started the electric wire business in 1885, and this became more prosperous by the day. After the death of Zenpachi, employees bought the tree from the shrine as a "living monument to the foundation of the company" and the tree has been taken care of by employees from then to the present. While the tree suffered in two fires, one caused by the Great Kanto Earthquake (1923) and the other by the air raid on Tokyo in 1945, new buds continued to sprout from the burned stump and each time the tree sprang back to life. This miraculous tree provided great motivation to employees who were devoted to the recovery of the manufacturing facilities in the wake of the disasters.