New Year’s Message for 2025 (Summary) Happy New Year, everyone. Looking back on the year 2024, the international situation remained tense with the ongoing Russian invasion of Ukraine, the Israeli-Palestinian conflict, and the collapse of the Assad regime, while it was also an "Election Year" with presidential and general elections held in many countries and regions, including the United States. Under these circumstances, exchange rates, commodity prices, interest rates, and other factors fluctuated widely, and the year was marked by further uncertainty about the future. However, looking at the domestic economy, there were positive developments such as capital investment and wage increases, which reached the highest level in decades. The Nikkei Stock Average reached the 40,000-yen level for the first time. ＜Our Business Performance＞ In the first half of the fiscal year, investment in data centers was booming due to the spread and expansion of generated AI, and profits in Telecommunications Systems Business segment grew significantly. In addition, Automotive Products Business, Electronics Business, and Power Business segments also exceeded their initial plans, achieving record highs in net sales, operating income, and ordinary income. For the second half of the fiscal year, although some markets are expected to face a difficult environment, we expect strong demand for data centers to continue, and we have revised upward our plan. As a result, for FY2024, we forecast net sales of 880 billion yen, operating income of 104 billion yen, ordinary income of 103 billion yen, and net income of 62 billion yen, all of which are expected to be record highs. ＜Safety Activities＞ Please keep in mind that health and safety is the basis of all activities and an important corporate foundation, and strive to create a safer work environment by continuing proactive improvement activities. In addition, an "open organizational culture" is very important in order to revitalize safety and health activities and make them a sustainable effort. Regardless of age, position, or job title, let’s respect each other and activate two-way communication without any conjecture. This year marks the final year of our 2025 Mid-Term Management Plan. Thanks to everyone's efforts, in FY2024, the second year of the plan, we expect to achieve the mid-term plan ahead of schedule in sales, operating income, and key indicators such as capital adequacy ratio, ROE, and ROIC. In FY2025, the final year of the plan, we will continue to aim for results that significantly exceed the mid-term plan, and we will also continue sowing seeds for the future business, looking beyond the 2025 mid-term plan, in order to leave a better business to the next generation. The year 2025 marks the 140th anniversary for Fujikura, and since 1885. When we started manufacturing silk and cotton winding wires, we have expanded our business to date by responding to the social issues of each era and creating new products and technologies. This is due to the tireless efforts of our predecessors and current employees, for which we express our sincere gratitude. We will continue to challenge ourselves to make Fujikura a highly profitable company with a bright future by creating value for our customers and contributing to society with an "enterprising spirit" to take on new challenges and a "technological Fujikura" to pursue advanced technologies in our DNA. Let's work hard together.
