小林敬一 写真

Keiichi Kobayashi
President小林敬一

I would like to begin by expressing my sincere gratitude to our shareholders for their exceptional support and generosity.

During the first half of the fiscal year under review (consolidated cumulative second quarter), the Furukawa Electric Group saw healthy sales of wire harnesses in the Automotive Products business in the Electronics & Automotive Systems segment and products targeted primarily at data centers in the Functional Products segment. However, sluggish performance in the Energy Infrastructure business and the fact that optical fiber cable business in North America is still in the recovery phase led to lower earnings in the Infrastructure segment. As a result, revenue was higher but income was lower compared with the same period during the previous year.

Moreover, one of the primary factors in the above-mentioned delayed recovery of the Infrastructure segment was our downward revision for the full-year financial forecast regarding the fiscal year under review. I would like to offer my sincerest apologies for the significant concern we may have caused our shareholders.

In preparation for achieving the medium-term management plan "Furukawa G Plan 2020", during the current fiscal year we will strengthen capital investments and research and development investments in key fields, as well as steadily implement initiatives aimed at enhancing earning capacity, including optimizing the business portfolio.

Moreover, we have called off the interim dividend for the period under review, but plan to offer a year-end dividend of 80 yen per share.

It is my hope that you offer us your extended support.

December, 2018