Investment in technology development, overseas expansion, and M&A will be critical to achieving the vision of Furukawa Electric's new medium-term plan to develop new businesses and restructure its operating portfolio.

For fiscal 2011 to fiscal 2013, we have increased average annual research and development spending 20% above fiscal 2010 levels to ¥21.5 billion, and established the New Frontier Fund with a total of ¥20 billion.

The New Frontier Fund, endowed through asset sales and business profits rather than through a new offering of capital stock, is being used to accelerate our growth plans in new businesses and markets. Of the ¥20 billion fund, ¥10 billion will be allocated for research and development, while the remaining ¥10 billion will be used for M&A and business alliances that will enhance our mobility to respond to changes in the management environment.