In FY2018, net sales for the Power and Telecommunication Systems Company declined 4.1% YoY to 354.8 billion yen and operating income fell 20.5% YoY to 17.7 billion yen. The decline in net sales was due to reorganization of a domestic electric wire sales company in the previous consolidated fiscal year. Operating income decreased due to the intensifying competition in the markets and the increasing costs in the overhead transmission cable project in Bangladesh, among other factors.

The plan for FY2019 is 356.6 billion yen in net sales and 14.5 billion yen in operating income. To achieve the plan, the Power and Telecommunication Systems Company is working to make the business highly profitable with the powerful ability to metabolize change.
While the persistent robust demand for optical fiber has eased, we are working to expand sales of solutions, mainly high-density, thin optical fiber (WTCTM with SWRTM).

To reduce CO2 emissions and prevent global warming, the introduction of renewable energy is accelerating and a series of solar power generation plants and windfarms are being built in various locations in Japan. The Fujikura Group is working to expand the use of renewable energy through the EPC* business.
*EPC: An acronym for Engineering, Procurement, and Construction

Optical fiber fusion splicer and peripheral equipment
We improved the efficiency of optical fiber tapping work by using a Bluetooth® connection and dramatically improved the ease of work at job sites.We improved the efficiency of optical fiber tapping work by using a Bluetooth® connection and dramatically improved the ease of work at job sites.

Air-Blown* WTC™
We developed optical cable (WTC™ with SWR™) that can be blown into conduits using the air pressure method.We developed optical cable (WTC™ with SWR™) that can be blown into conduits using the air pressure method.
*A method of installing cable in conduits by blowing them in with air pressure. This method is mainly used in Europe.*A method of installing cable in conduits by blowing them in with air pressure. This method is mainly used in Europe.

In FY2018, the Electronics Business saw a 5.6% YoY decline in net sales to 185 billion yen and a 20.3% decline in operating income to 8.3 billion yen. This mainly resulted from the impact of the rapid decline in demand for smartphones in the second half.

Our plan for FY2019 calls for 167.7 billion yen in net sales and 8.7 billion yen in operating income. The changes in the market environment caused by the trade policies of the U.S. and China have led to a business environment that requires us to pay attention to elements of uncertainty. To achieve the goals of the 2020 Mid-term Business Plan, we will pursue operational excellence and forcefully push ahead with automation and improvement in productivity.

Board-to-board Connectors for Vehicles and Mobile Devices
The Fujikura Group developed board-to-board connectors to meet the need for electronic control and miniaturization in vehicles and has expanded the variety of board-to-board connectors available. These connectors minimize the space required for mounting on printed circuit boards and are highly reliable, with a locking mechanism to resist vibration and prevent disconnection.

Ultra-thin Vapor Chamber
The increasing functional sophistication of smartphones, digital cameras, and other small mobile devices has caused problems with heat. Fujikura developed an ultra-thin 0.4-mm-thick vapor chamber to solve this problem. The vapor chamber uses a flat heat pipe to achieve high performance in dissipating heat.

Compact Oxygen Sensor
Fujikura developed FXCUWL, the optimal compact oxygen sensor. It is compact, lightweight, and portable, and will be mainly used in oxygen concentrators in the future. It reduces the height by 40% and weight by 20% compared to conventional products and is contributing to the creation of smaller oxygen concentrators. The Fujikura Group will contribute to better health and QoL (quality of life) for many people through this product.

In FY2018, the automotive products business saw a 1.9% YoY decline in net sales to 154.1 billion yen and an operating loss of 3.2 billion yen. While the increase in costs caused by the increase in the employee attrition rate at the manufacturing plant in Eastern Europe during FY2017 has been resolved, the impact of production cuts by customers in Asia resulted in this decline.

In FY2019, our plans call for 148.3 billion yen in net sales and an operating loss of 100 million yen. The three global regional headquarters for Asia, North & South America, and Europe are all working in concert to improve profitability through cost reduction initiatives such as relocating the manufacturing plant in Eastern Europe to Morocco and structural reform in Asia.

Junction Box for Hybrid Articulated Bus
Fujikura has developed high voltage junction box for the first made-in-Japan hybrid articulated bus. This box consists of the front car box, back car box, and high voltage wire harness. We will start mass production of this box from July 2019.

Capacitive Sensor Film for Touch Switches
This capacitance sensor film is used in console boxes, room lamps, and steering switches as a replacement for mechanical switches. The market is expected to expand sevenfold in 2025 compared to 2018.

LED Light-Guide Module
LED light-guide module is a complex product. It is assembled from a wire harness, a mounted FPC, and molded plastic parts (lens, light guide, etc.), and is installed in vehicle interiors.

In FY2018, both revenues and profit declined YoY due to the free rent period offered to new tenants who were replacing former tenants. However, the properties remained at full occupancy supported by a strong office leasing market. In FY2019, our plan calls for growth in revenues due to the expiration of free rent periods, but expenses will also increase due to energy-saving and other improvements to increase the value of the properties and we anticipate a slight increase in profit.

Fujikura redeveloped its former Fukagawa plant based on the concept of establishing a new identity for the Fukagawa and Kiba areas, resulting in Fukagawa Gatharia in 2010.
The area offers high convenience while also functioning as the center of the downtown culture and the need for new business areas has increased in recent years. In developing Fukagawa Gatharia, which boasts a large square that integrates businesses, shopping, and amenities, we also took on the challenge of reaching beyond the concept of simple redevelopment to urban renewal with view of passing on traditions and creating a world for a new era.

Fukagawa Gatharia co-exists with the surrounding environment as an intersection of the new and the old. We will strive to create a “town” that will help enrich the lives of everyone in the area and continued to be loved by and popular with everyone.

Logo Origin
Gatharia was coined by combining the words “gather” and “area” with “ia” (a suffix derived from Latin which means country or area). It expresses the concept of an area where people and things gather. The red, green, and blue colors in the logo symbol signify business, shopping, and amenities, and portray the image of the co-existence of all three elements.v

Tokyo is implementing the “Zero Emission Tokyo” initiative to eliminate CO2 emissions. The city is soliciting CO2 emissions reduction credits from the participants in the Tokyo Cap-and-Trade Program to help offset the carbon emissions related to the Tokyo 2020 Games.

At Fukagawa Gatharia, we have implemented measures to reduce greenhouse gas emissions while also utilizing the subsidy program to switch the ceiling lights to LED when performing construction when a tenant leaves and another one enters, and installing energy-saving equipment when upgrading old equipment, in part to fulfill our obligation under the Tokyo Cap-and-Trade Program. Pursuing these energy-savings and operating measures resulted in a 39.1% reduction in FY2018, compared to the mandatory reduction of 17%.
We recently donated the CO2 emissions credits we have earned thus far (credits earned from FY2010 to FY2014) to the city of Tokyo and received a letter of appreciation from the city.
Fujikura will continue to cooperate on initiatives aimed at achieving Zero Emission Tokyo.v

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.