Happy New Year.

Last year, Japan’s economy continued to see a moderate recovery overall, despite concerns on issues such as growing trade tensions and the future of China’s economy. Japan also suffered damages across the country due to landslides and river flooding caused by record breaking winds and rainfall from typhoons Faxai (No. 15 in Japan), Hagibis (19), and Bualoi (21). Some Fujikura Group employees and their families were affected. I would like to offer my sympathies to those affected and, at the same time, I am strongly aware that preparing for damages resulting from this intense climate change is an urgent issue for management.

To increase corporate value, I believe we need to increase the value Fujikura offers to customers, shareholders, and, of course, employees. In other words, we need to elevate the Fujikura brand. Therefore, our management team will show employees how to contribute to society, what direction we will take in order to maintain a sustainable company. By obtaining your understanding in this regard, it will be important to ensure the company’s commitment and employees’ commitment are the same. Companies with a high level of employee engagement should align both commitments. By enhancing employee engagement, we will be able to raise employees’ motivation to enhancing the Fujikura brand. Employees with a greater sense of motivation will think more about increasing value from the customer’s perspective. In this manner, we will be able to provide solid value to customers and move customers in a way that exceeds customer expectation. As a result of increasing value from the customer’s perspective, I believe that value from the shareholder’s perspective will naturally increase, too.

As you all know, the current operating environments of our core businesses are very challenging. However, there is a source of power that has always united and overcome the crisis at the heart of our corporate culture. The difficult situation today is precisely the time for us to combine our collective strengths to pave new roads.

I look forward to working with all of you to restore and further enhance Fujikura’s corporate value.