Keiichi Kobayashi
President

Taking a strong step forward toward maximizing profits in the existing businesses through a focus on capital efficiency

I offer gratitude to our shareholders for your extraordinary support and kindness.

In FY2021, we achieved higher revenue as a result of recovering optical fiber and cable sales in North America in the Communications Solutions business, capturing the strong demand in the Electronics Component Materials business and the impact of soaring copper prices. On the other hand, despite efforts to increase productivity and improve the product mix, operating income growth was limited due in part to soaring raw material prices and transportation expenses. Based on these results, it was decided to issue a dividend of JPY60 per share for FY2021.

Concerning the forecast for FY2022, after taking into account the impact of the semiconductor shortage, situation in Ukraine and Russia and prolonged COVID-19 lockdown in Shanghai, we expect to achieve increased profit on higher revenue through increased revenue in each business segment, eliminating the one-time expenses (emergency transportation expenses, etc.) in the Automotive Products business and incorporating the higher costs into the sales price.

Also, in May, we announced our new Medium-term Management Plan “Road to Vision 2030 – Transform and Challenge” extending through FY2025. Under this plan, we will “maximize profits in the existing businesses through a focus on capital efficiency” and “build a foundation for creating new businesses by strengthening the development and proposal capabilities” directed at achieving our Furukawa Electric Group Vision 2030. Also, by working to “strengthen the foundation for ESG management”, we will aim to increase ROIC to at least 6% and operating income to at least JPY58.0 billion in FY2025.

I ask for your continued support.

June 2022