Embed Size (px)
Citation preview
5-1, Kiba 1-chome, Koto-ku, Tokyo 135-8512, JapanTel. +81-3-5606-1030Fax. +81-3-5606-1502URL. http://www.fujikura.co.jp
Printed in Japan
“TSUNAGU” Technology
ANNUAL REPORT 2007
Fujik
ura L
td. A
NN
UA
L R
EP
OR
T 2
00
7
Policy of the New Mid-Term Business PlanToward a “Customer Value Creation Business Model” “Deliver value, not just products, to customers”
Sustained awareness of “Mission • Vision •
Core Values (MVCV)” and promotion of organizational cultural reform
Reinforcement of “Monozukuri (manufacturing)”culture and to “Eliminate waste (Nothing is
scared in the quest for zero waste)”through promotion of G-FPS
MVCV
Business Strategy (Companywide & By Sector)
Business Strategy Goals
Mid-term & Single Year Execution Plan
Nothing is sacred inthe quest for zero waste
Sales-orientedManagement
Quality First
Manufacturing Culture of “Change”Quality Improvement
G-FPS Activities
Confirm “what MUST be performed and achieved” from the Customer’s perspective and “change” organizational culture to satisfy these requirements.
Since its establishment in 1885, Fujikura has continuously contributed to the advancement of society by developing cutting-edge
technologies and conducting its business on a foundation of trust and dependability. However, in order to not only survive but also win
in this market of constant and dramatic change, it is necessary to fundamentally reform our corporate culture. To achieve this objective,
FUJIKURA positioned 2005 as a year of rebirth – the beginning of the “Third 60 Years.” With this in mind, we have formulated the “Mission •
Vision • Core Values” to be shared by all Fujikura Group employees – a new set of corporate management concepts and principles that
will help us successfully navigate a new path to the future. Based on our new corporate philosophy defi ned in our “Mission • Vision • Core
Values,” we have commenced our G-FPS (Global Fujikura Production System) campaign under which we are implementing various strate-
gies and plans.
In our G-FPS activities, “Quality First” is the core concept that serves as the platform for our production activities, and injects the
culture of manufacturing with the spirit of craftsmanship. We must clarify to all that “Quality First” is “an absolute to be implemented from
the customers’ perspective,” and are undertaking a reform of our corporate climate to press forward with the “Third 60 Years.”
In our G-FPS activities, we use the corporate philosophy “Mission • Vision • Core Values” as a compass to navigate our way to
customer value creation, and each individual is an integral contributor in helping us to realize of our goals of reinforcing craftsmanship and
eliminating waste wherever possible. These activities will be implemented not only in the Fujikura Group’s Japanese operations, but also
overseas, in all areas of operations, at both production plants and support divisions.
Management Policies under
the New Medium-Term Business Plan
Consolidated Financial Highlights ........................................................... 1A Message from the President & CEO .................................................... 2Focusing on fused technology of optics, electronics and wireless ......... 6Fujikura at a Glance................................................................................. 8Telecommunications ............................................................................... 9Electronics & Auto ................................................................................. 10Metal Cable & Systems ......................................................................... 11Directors, Corporate Auditors and Executive Offi cers .......................... 12Corporate Social Responsibility ............................................................ 13
Contents
Management’s Analysis of Financial Position and Operating Results... 17Consolidated Balance Sheets ............................................................... 18Consolidated Statements of Income..................................................... 20Consolidated Statements of Changes in Net Assets ............................ 21Consolidated Statements of Cash Flows .............................................. 22Notes to the Consolidated Financial Statements .................................. 23Report of Independent Auditors............................................................ 36Main Consolidated Subsidiaries............................................................ 37Investor Information ............................................................................... 37
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2003 2004 2005 2006 2007
(millions of yen)
Net Sales
0
10,000
20,000
30,000
40,000
20042003 2005 2006 2007
(millions of yen)
Income from Operations
-10,000
0
10,000
20,000
30,000
20042003 2005 2006 2007
(millions of yen)
Net Income (Loss)
0
100,000
200,000
300,000
400,000
500,000
600,000
20042003 2005 2006 2007
(millions of yen)
Total Assets
0
100,000
200,000
300,000
20042003 2005 2006 2007
(millions of yen)
Shareholders’ Equity
0
10
20
30
40
50
20042003 2005 2006 2007
(%)
Shareholders’ Equity to Total Assets
Consolidated Financial HighlightsFujikura Ltd. and its Consolidated Subsidiaries
thousands of millions of yen U.S. dollars
Years ended March 31, 2003 2004 2005 2006 2007 2007
For the YearNet Sales ¥316,909 ¥331,325 ¥360,752 ¥503,090 ¥645,984 $5,470,272Income from Operations 8,887 13,359 16,763 39,758 34,508 292,214Net Income (Loss) (5,630) (2,557) 5,412 24,990 21,484 181,932Capital Expenditure 23,493 21,046 21,506 24,598 32,412 274,471Research and Development Expenditure 11,356 11,010 12,128 12,252 12,291 104,085
At Year-EndTotal Assets 421,633 412,316 411,619 465,358 536,766 4,545,402Total Shareholders’ Equity 177,474 177,852 181,029 — — — — — — 223,824 254,638 2,156,312
Number of Employees 23,873 23,825 27,553 33,658 43,874
yen U.S. dollars
Per Share DataNet Income (Loss) – Primary ¥(14.6) ¥(6.7) ¥14.4 ¥66.2 ¥57.3 $0.485Net Income – Fully Diluted — — — — — —Cash Dividends 3.0 3.0 6.0 10.0 10.0 0.085
Note 1: All dollar figures herein refer to U.S. currency, which have been translated from yen amounts, for convenience only, at the rate of ¥118.09=US$1.00, the rate of exchange on March 31, 2007.
2: Fujikura Ltd. and its subsidiaries restated their consolidated financial statements for the years ended March 31, 2005 and 2006. The consolidated financial statements for the years ended March 31, 2004 and 2003 were not restated.
1ANNUAL REPORT 2007
Dating from 1885 – the year of our birth as a manufacturer
of wire insulated by silk and cotton windings, 2006 marked
the 121st year of Fujikura’s existence. Throughout this period,
which is the equivalent of two traditional 60-year lifetimes.
Fujikura has continued to contribute to the advance of soci-
ety and earn its trust through the development and manu-
facture of cutting-edge technology. Today we are taking
our fi rst bold steps into our “Third 60 Years of Leadership”,
and we have announced a new mid-term business plan that
targets FY2010 for the achievement of our goals. As a “Value
Creation for Customer” enterprise, an approach that delivers
original value – not just products – to our customers, Fujikura
is committed to enriching the society of tomorrow.
Looking back on FY2006
The Japanese economy during the last fi scal year (April 1,
2006~March 31, 2007) enjoyed overall growth. Both capital
investment and hiring increased in step with the improving
corporate profi ts, stimulating a moderate recovery in personal
consumption. For Fujikura, this generally favorable climate
served as a tailwind for our business activities. On the other
hand, factors such as soaring material costs in global mar-
kets and increasingly severe price competition produced new
hurdles to overcome. As a result, while consolidated sales of
Fujikura reached ¥645,984 million – a 28.4% increase over
the previous year and the highest in our history, we recorded
ordinary profi t of ¥32,772 million for the same period or a 9.0%
decrease from the previous year, which was mainly attributed
to downward pressures on our supply price of fl exible printed
circuits (FPC). However, dividends of ¥10 per share were the
same as in the previous fi scal year.
In the Telecommunications segment, we witnessed the
continuing rapid expansion of the broadband market and
aggressive investment in Fiber To The Home (FTTH) infra-
structure by carriers both in Japan and abroad. Anticipating
this demand, our strategy to increase optical fi ber & optical
fi ber cable manufacturing capacity proved successful, and
we have enjoyed growth in not only sales but also profi ts
A Message from the President & CEO
Kazuhiko Ohashi, President & CEO
2 Fujikura Ltd.
thanks to reduced manufacturing costs. America Fujikura Ltd.
(AFL) reported strong sales of optical fi ber cable and related
connectivity products, further contributing to favorable results
in this segment.
In the Electronics & Auto segment, the recovery in
consumer spending has fueled expansion of products
ranging from digital appliances and mobile phones to digital
cameras. On the other hand, the severe price competition
facing these consumer goods in turn had a large impact on
our core FPC (fl exible printed circuits) business, resulting in
the unavoidable reduction of our prices.
In the Metal Cable & Systems segment, Fujikura also
enjoyed favorable results driven by strong investment in plant
and equipment, large-scale commercial facility construction
in Japan, and our positioning as a supplier for overseas plant
engineering projects. From the perspective of profi tability, soaring
copper prices were absorbed by an appropriate adjustment
in cable product prices, but more importantly by successful
efforts to reduce costs. As a consequence, operating profi ts
were about double the level of the previous year.
New mid-term business plan targets new levels of
growth and improved profi tability.
Announced in June 2007, the new mid-term business plan
clearly positions the Electronics & Auto segment as the
nucleus of Fujikura’s business and aims at driving growth
and increased profi tability through aggressive investment.
Through these efforts, Fujikura plans to achieve total sales
of ¥850,000 million on a consolidated basis in FY2010 (32%
increase compared with FY2006) and operating profi ts of
¥68,000 million (97% increase compared with FY2006). This
will represent an increase in the operating profi t ratio from the
current 5.3% to 8.0%.
In the Electronics & Auto segment, we will pursue
aggressive investment in the core FPC products, aiming at
enhanced product functionality and further modularization.
By offering a complete lineup of added-value module
products that combine FPC with other components such as
fi ne-pitch connectors and dome switches for mobile devices,
Fujikura will boost sales and improve profi tability. For FY2007,
we are targeting FPC sales of ¥100 billion and expect to
further expand sales to ¥150 billion in FY2010.
In order for our Automotive Electronics business to
respond to the globalization of the automobile industry, we
acquired a 60% equity share in Auxiliar de Componentes
Electricos, S.A. (“ACE”), a manufacturer of wire harnesses in
Spain, in October 2006. The addition of ACE to the Fujikura
Group reinforced our supply system and completed our
global network of 4 centers serving Japan, China, North
America and Europe. The powerful synergy of Fujikura’s
technological excellence and ACE’s strong relationship with
European automakers is expected to contribute to signifi cant
future growth of our European operations. We are committed
to answering the remarkable electronics revolution in auto-
motive design by incorporating FPC, membrane switches
and other strengths of Fujikura technology in new product
proposals for our Automotive Electronics business.
Through the execution of these strategies, our business
plan aims at growing the Electronics & Auto segment into a
core business of Fujikura, targeting sales of ¥400 billion (66%
increase compared with FY2006) and operating profi t of ¥35
billion (182% increase compared with FY2006) in FY2010, or
approximately half of all company sales and profi ts.
In the Telecommunications segment, we will exploit
our globally leading cost competitiveness in optical fi ber
manufacturing and focus on expanding sales in overseas
markets. In response to the global expansion of FTTH
networks, we will leverage the powerful sales channels that
have won Fujikura the top share of the global connectivity
device market. Our aim is to grow and become the world’s
leading optical cable system provider. Also in the fi eld of
device components, we will expand sales in the medical
fi eld, sensors, automotive applications and other non-
telecommunications markets that hold huge future potential
for optical technology applications. With these expectations
in mind, Fujikura is committing even larger investments in
related research and development.
3ANNUAL REPORT 2007
Engineering Service is a strength of AFL, and Fujikura
will be concentrating its energies on expanding its presence
in the giant American market.
The Metal Cable & Systems segment market is quite
mature, especially in Japan, and signifi cant growth is not
expected; however, because this segment continues to be a
stable source of sales and takes advantage of core technolo-
gies that have been fostered over our 120-year corporate
history, it will maintain a high priority at Fujikura. In overseas
markets such as China and the Middle East, demand is brisk.
Last year we sought improved effi ciencies on the production
side by consolidating the manufacturing of metal cable for
telecommunications in the Suzuka Plant. Through these
marketing and production measures, we forecast operating
profi ts of ¥10 billion in FY2010 – twice the level of FY2006.
Over the 4-year period from FY2007 to FY2010, the
planned investment in plant and equipment that will support
our strategies will total approximately ¥150 billion, of which
60% will be allocated to the Electronics and Auto segment
and 15% to Telecommunications segment. Also during
the same 4-year period, approximately ¥70 billion is to be
invested in research and development with a focus on fused
technologies of optical/
wireless and electronics,
and also on life sciences.
Since June 2007, we
have been concentrating
our domestic R&D activi-
ties in the Sakura Plant,
enabling us to pursue our
research more effi ciently.
Our key to success in the Third 60 Years is our
employees.
In the previous era, the core business of Fujikura was driven
by booming demand generated by the electrical power and
telecommunications infrastructure. As a result, we enjoyed
strong and steady business performance built on relationships
with a handful of trusted clients. Today, however, demand
from the domestic infrastructure has peaked, and we must
seek new concepts and approaches in order to achieve
further growth. With the aim of instilling the spirit and com-
mitment towards starting anew, I declared the “Third 60
Years” of Fujikura.
No matter what business strategy we formulate, it will
be the spirit of the employees to meet and overcome new
challenges that will determine our success. In October 2005,
I unveiled our new corporate philosophy “Mission • Vision •
Core Values (MVCV)” and our mission, stating “Our FIRST
RESPONSIBILITY is to our customers. We shall help them
sustain and develop their business by providing superior
products and services through “TSUNAGU” (connection)
technologies.” Every since then, I have been visiting our
offi ces and plants around Japan and the world, and urging
employees to embrace “change” and take an active role
in the “Third 60 Years” of our company. In order to make
our aims for the Third 60 Years easier to understand and
to encourage common understanding, we produced an
illustrated book entitled “Tobu Zo” (Let’s Fly) in August 2006,
and distributed it to our employees, allowing me to share my
thoughts on the joy and sense of achievement that can be
found in a job well done.
In June of this year, we announced our new mid-term
business plan, which established goals to be achieved in
FY2010. As one of the companywide activities to help us
reach these targets, we launched G-FPS (Global Fujikura
Production System). Based on the fundamental concept of
“Quality First” – which is the platform for all our manufactur-
ing, G-FPS calls on each employee to take the initiative and
tackle their jobs with our “MVCV” corporate philosophy
serving as their navigator. While reinforcing the essential
manufacturing culture, we are eliminating waste wherever it
exists – not only in our domestic group operations but also
overseas. Not only in every corner of manufacturing, but any
operation indirectly related to or supporting manufacturing is
subject to severe scrutiny. Nothing is sacred in our quest to
cut waste.
A Message from the President & CEO
4 Fujikura Ltd.
Always “connected” with society.
Throughout the long history of Fujikura, we have assigned
the highest priority to our social responsibilities. In 1919,
our founder’s family donated both personal funds and land
for the creation of Fujikura Gakuen, a special facility for the
mentally challenged. Since then, our company and our
employees have continued to fully support this institution. In
June of this year as part of the commemoration of the 120th
anniversary of our founding, we presented Fujikura Gakuen
with a newly constructed main hall to replace the aging facili-
ties as well as a new building where the mentally challenged
can receive training to help them become more self-reliant.
Fujikura’s contribution does not end at the shores of
Japan. Our Group employs approximately 43,000 people,
and in Thailand, where Fujikura is one of the largest Japan-
based corporate groups operating in that country, we are
contributing to local education through a variety of activities
including sponsorship of scholarships and donation of
recreational equipment to primary schools.
Fujikura is also aggressively tackling environmental
management and is in the process of earning ISO14001
certifi cation for all its domestic business and manufacturing
centers.
All over the world, awareness and expectations of
corporate social responsibility are on the rise. For companies
that aspire to be corporate citizens on a global scale, it is
vital to be conscious of responsibilities on the global stage
and to have a clearly defi ned and executed CSR policy. At
Fujikura, we strive to conduct ourselves, fully aware of our
economic, environmental and social responsibilities, and we
are committed to improvement of social welfare and making
our world a better place for all.
Prospects for FY2007
In our business plan for FY2007, we expect to record net
sales of ¥655 billion (+1.4% from FY2006), ordinary profi t of
¥30 billion (-8.5%) and after-tax profi ts of ¥ 20 billion (+6.9%
from FY2006) on a consolidated basis. The main factor
behind our forecast for decreased profi ts is the lingering
impact of FPC price erosion.
Guided by our new mid-term business plan, we shall
endeavor to achieve further growth and improve our profi t-
ability. Above all, we aim to raise shareholder value with a
dividend payout ratio of 30% as our target.
With the continued support and encouragement of all
our investors and shareholders, I look forward to not only
meeting but also exceeding your expectations.
June 2007
Kazuhiko Ohashi
President & CEO
5ANNUAL REPORT 2007
Focusing on fused technology of optics, electronics and wireless
Telecommunications
With proven strength in optical communications
technologies, the Fujikura Group supplies optical fi ber cables and optical
components all over the world.
In Japan, major telecommunications carriers are working to expand broadband FTTH (Fiber
to the Home) subscribership. Fujikura is contributing to this effort through the development and
supply of a broad range of miniature optical connectors and other components at reduced costs with
the aim of supplying FTTH networks to a larger number of households. Of late the high-end residential
condominium market shows the most promise for growth in demand. For this application, Fujikura has
developed highly fl exible optical fi ber cable – halving in bending radius of conventional cable – facil-
itating cable installation. Fujikura maintains the major share of the world market for state-of-
the-art optical fi ber fusion splicers which can connect large core optical fi ber and other
special purposed fi bers. Fujikura is also developing a 10 Gbps optical transceiver
and a 10 Gbps optical transponder. We are also developing applications for
industries other than telecommunications, including fi ber lasers
and optical interconnection modules.
As a research-driven company that regards high-tech as the wellspring of its competitiveness, Fujikura
pursues advanced R&D activities to support all aspects of its Telecommunications, Electronics &
Auto, and Metal Cable & Systems segments. In Japan, we operate three research facilities including
Optics and Electronics Laboratory, Material Technology Laboratory, and Electron Device Laboratory.
Besides these laboratories, Electronic Components R&D Center, Optical Cable System R&D Center,
and Optoelectronics Circuits & Systems R&D Center, and Power and Telecommunication Cable System
R&D Center are operating in each fi eld of our business segments. Overseas, we operate the Fujikura
Technology Singapore facility.
Below is an outline of current progress in R&D activities.
6 Fujikura Ltd.
This segment supplies fl exible printed circuits (FPC), electronic wire, semiconductor device packaging
products and thermal products such as heat pipes to the digital consumer appliance and electronic
device industries. We supply wire harnesses and other electronics to the automotive industry.
We are currently observing an accelerating trend toward more advanced functionality, com-
pactness and reduced costs in digital home appliances as well as electronic devices. To meet the
requirements of these applications, Fujikura is developing technologies that include fi ne-patterning
and multi-layering technologies, IC-chip-embedded board and low spring-back materials for
substrate use. In electronic wiring, we have begun to mass-produce micro coaxial cables and we
are further developing our technologies to achieve even smaller wire radii. Our semiconductor
packaging products employ WLP (Wafer Level Packaging) technology. We have used this
technology in conjunction with our expertise in MEMS (Micro Electro Mechanical Systems)
technology to establish a method for three-dimensional pattern processing which
used through silicon vias (TSV). For thermal devices, we are developing systems that
incorporate cooling fans in addition to conventional heat pipes and heat chambers.
For electrical components, we have commercialized static capacitance sensors,
Liquid Crystal back light cooling heat pipes and antenna coils for RFID (Radio
Frequency Identifi cation). We plan to continue our efforts to adapt our proprietary
technologies to electrical components.
Metal Cable & Systems
Electronics & Auto
In step with our expansion on the global stage, our development in Metal
Cable & Systems is increasingly focused on meeting the relevant component, construction
and installation requirements in those overseas markets, as well as the development of power
distribution systems and components that satisfy the diverse needs of the new approaches to environ-
mentally friendly power generation.
In the fi eld of telecommunications metal cable, we are focusing on the development of corrugated coaxial
cable known for its superior electrical and mechanical properties, and leaky coaxial cable for the era of “ubiqui-
tous” networking. Another type of micro coaxial cable was also developed and joined our electronics lineup.
In the area of YBa2Cu3O7-x (YBCO) oxide superconducting wire, Fujikura is attracting global attention
for development of prototype superconducting coil that generated 1 tesla and powered a motor driving
a propeller in an underwater experiment - the fi rst time that this has been achieved anywhere in the
world. Future plans will see the production of longer superconductive coils to be used in
feasibility research with a view towards commercialization.
7ANNUAL REPORT 2007
Net Sales
18%
Net Sales
36%
Net Sales
42%
Net Sales
4%
As a Global Wiring Solution Provider, Fujikura is the source for one-stop solutions ranging from fl exible printed circuits (FPC) that enable higher functionality and miniaturization in digital cameras and mobile phones to a variety of other products including electronic wiring, components for hard disk drives, membrane switches, micro heat pipes, heat sinks, vapor chambers and other modular products. In car electronics, the establishment of a new base in Europe – principally for the production of automotive wire harnesses incorporating advanced wiring technologies, completes a global production network that boasts production bases in each of the four key marketing regions of the world.
The former Fujikura plant site at Kiba in Koto Ward, Tokyo (70,000 square meters) has been redeveloped into an integrated urban complex that includes offi ce buildings, a shopping mall, a cinema complex, a fi tness club, and restaurants. The new offi ce building (N-Tower) completed in January 2007 and the S-Tower completed in 2003 together comprise the twin-tower centerpiece of the project. Sales in this segment totaled ¥14.2 billion, up ¥700 million year-on-year, refl ecting real estate rental revenues principally from the Fukagawa redevelopment business. Operating profi t rose ¥500 million year-on-year, to ¥3.6 billion.
In addition to supplying metal cable for telecommunications including coaxial cable, tele-communications cable for telephone use and plant instrumentation cable, Fujikura provides a variety of other electric wiring and cable such as the electric and control cable used inside buildings and factories, industrial device cable, as well as the electric wiring and cable used in elevators, shipping, rail transportation, and various other industrial applications, and we also supply eco products. Fujikura also enjoys a global reputation for the performance and reliability of ultra-high voltage (500,000 volts) underground and submarine transmission cable, overhead power transmission networks for electric power companies, and overhead power and ground wiring incorporating optical fi ber.
Leading the world in optical fi ber manufacturing technology, Fujikura has pioneered optical fi ber cable, optical components, optical fusion splicers and other products for the Fiber to the Home (FTTH) sector. For the development of FTTH and next-generation networks in Japan and abroad, we are combining our proprietary technology with the latest technolo-gies to provide total solutions that satisfy the demands of every aspect and application of optical networks.
Fujikura at a Glance
Telecommunications Segment>>
Electronics & Auto Segment>>
Metal Cable & Systems Segment>>
Other>>
8 Fujikura Ltd.
20,000
40,000
60,000
80,000
100,000
120,000
02003 2004 2005 2006 2007
(millions of yen)
Net Sales
Business Activities
In the Telecommunications segment, we expect an ongoing expansionary trend in FTTH
worldwide. In the segment’s mainstay optical cable and network equipment operations, we
anticipate growing demand for backbone and access systems.
Fujikura is expanding its sales network in the U.S., and also in China, India, Russia,
the Middle East and Africa. Strong sales of optical fi ber cable and optical fusion splicers are
primarily attributable to our cost competitiveness, which we have improved over the long
term. We will continue making patient efforts to enhance our strengths.
Results
Steady growth in demand for FTTH both in Japan and overseas has fueled strong demand
for our optical fi ber cables and optical connection components for access networks as well
as optical fusion splicers. In particular, robust demand for optical fi ber cable contributed
signifi cantly, resulting in a growth in both revenues and earnings. Overseas, America Fujikura
Ltd., our U.S. unit achieved a dramatic growth in revenues and earnings thanks to strong
demand for optical fi ber cable and connecting components. The Telecommunications seg-
ment reported a ¥17.3 billion increase in sales, to ¥117.7 billion on a consolidated basis, while
operating profi t grew ¥4.0 billion, to ¥13.6 billion.
Major Businesses
Optical fi ber & optical fi ber cables, optical connectors and connection components, optical
devices, optical fusion splicers, optical network monitoring systems, optical transmission
equipment, optical wiring systems, and telecommunications-related installation projects.
Telecommunications
9ANNUAL REPORT 2007
50,000
100,000
150,000
200,000
250,000
02003 2004 2005 2006 2007
(millions of yen)
Net Sales
Business Activities
In the Electronics & Auto segment, we forecast growth in demand from digital home electronics
and mobile equipment manufacturers for our mainstay FPC (fl exible printed circuits) and con-
nector products, amid the spread of “ubiquitous networks.” On the other hand, the operating
environment is quite severe, given the shortened product lifecycles and intensifying price
competition. We will be required to undertake active investment, while maintaining a cautious
stance on decision-making for individual projects, to raise profi ts under these circumstances.
We will continue to proactively invest in production capacity for FPC, connectors, and HDD (hard
disk drive) components, among other items. We are working to raise our production yield and
improve product quality by upgrading our production capabilities.
Results
Sales in the Electronics & Auto segment rose ¥43.3 billion to ¥240.9 billion. Operating profi t
declined ¥12.3 billion to ¥12.3 billion. FPC products performed well amid a growing market
for digital home electronics, mobile phones, and digital cameras. The impact of severe price
competition for these fi nished products made reductions in the price of FPC, as a component,
unavoidable. In terms of profi ts, there was a considerable deterioration compared with the previ-
ous year’s results, which was the primary reason for the decline in the overall operating profi t for
the Electronics & Auto segment. In addition, we made extensive efforts to boost sales of con-
necters, taking advantage of market expansion, and achieved a year-on-year growth in sales.
In the fi eld of electronic wire harnesses, demand remained strong for micro coaxial cables
for use in mobile phones. Wire harnesses for automotive applications remained steady. In order
to commit actively to the automotive industry, which is fl ourishing globally, we acquired a 60%
stake in Auxiliar de Componentes Electricos, S.A. (“ACE”), a Spanish manufacturer of wire
harness, and then, in December, we acquired the remaining shares in the Chinese joint venture
company Fujikura Changchun Ltd. from the U.S. company Alcoa Inc., making it our wholly
owned subsidiary.
The Group already operates production bases for wire harnesses in Japan, the U.S. and
China. The acquisition of ACE has enabled the establishment of a base in the European market,
and helped us to create a system for responding to demand in the world’s leading vehicle markets.
Major Businesses
Flexible printed circuit boards (FPC), connectors, automotive wire harnesses, automotive compo-
nents, sensors, electronic wiring, hard disk drive components, micro heat pipes and heat sinks.
Electronics & Auto
10 Fujikura Ltd.
100,000
200,000
250,000
50,000
150,000
300,000
02003 2004 2005 2006 2007
(millions of yen)
Net Sales
Business Activities
Markets for the Metal Cable & Systems segment have already matured. Nonetheless, there still
exists room for developing new products and carving out new demand, and we are making
strenuous efforts to this end. Moreover, we are consolidating manufacturing facilities to improve
profi tability and enhance our cost-competitiveness.
Results
Thanks to a high level of capital investment in Japan, centered primarily on the construction of
large-scale commercial facilities, and the robust overseas demand for plants, the industrial-use
wire market saw steady growth. Another factor was the ongoing upward trend in copper prices
that began the preceding year.
Overall, sales for the Metal Cable & Systems segment rose ¥81.4 billion to ¥273.0 billion,
registering a substantial growth. Operating profi t in this segment came to ¥4.9 billion, an increase of
¥2.6 billion year-on-year, and a major improvement in performance achieved through cost-cutting
measures implemented in recent years and a strong performance in overhead power transmission
wires in the U.S. market.
In the Japanese market, on April 1, 2006 the telecommunications-use metal cable business
of the Telecommunications segment was incorporated into the Power Cables segment, and
relaunched as the Metal Cable & Systems segment. In addition, we transferred production facilities
of metal cables from our Sakura Plant to our Suzuka Plant, consolidating production to enhance
effi ciency in manufacturing and to strengthen our technological and development capabilities.
Simultaneously, we worked to unify the leadership of Group companies, provide support for pro-
duction, and upgrade manufacturing technologies as we undertook reorganization of operations.
Overseas, we set up a joint venture in China to manufacture and sell components for use in
electric power networks supplying electric power for homes and small businesses in units of 6.6
kv or less. These components consist primarily of metal and rubber parts for connecting electric
cables and attaching cables to electric poles.
Major Businesses
Industrial cables, metal telecommunications cables, overhead power transmission cables,
distribution wires, magnet wires, electrical wire, all kinds of cable accessory products, and cable
laying works.
Metal Cable & Systems
11ANNUAL REPORT 2007
Directors, Corporate Auditors and Executive Offi cers
Kazuhiko OhashiPresident & CEO &
Representative Director
Masao KawabataSenior Executive Vice President &
Representative Director
Yutaka WakuiExecutive Vice President &
Member of the Board
Takashi NishidaExecutive Vice President &
Member of the Board
Yoichi NagahamaSenior Vice President & Member of the Board
Toshio MizushimaSenior Vice President & Member of the Board
Takashi SatoSenior Vice President & Member of the Board
President & CEO & Representative Director
Kazuhiko Ohashi
Senior Executive Vice President & Representative Director
Masao Kawabata
Executive Vice President & Member of the Board
Yutaka Wakui
Takashi Nishida
Senior Vice President & Member of the Board
Toshio Mizushima
Yoichi Nagahama
Takashi Sato
Takao Shioda
Masato Koike
Corporate Auditor
Takashi Sugiyama
Takeo Kuroki
Takahiko Abe
Hiroyoshi Ichisawa
Managing Executive Offi cer
Ryozo Yamauchi
Noboru Sugiyama
Joji Suzuki
Executive Offi cer
Hideo Suzuki
Mitsuhiro Nakazawa
Takashi Kunimoto
Eiichiro Yamada
Hideo Shiwa
As of June 29, 2007
Takao ShiodaSenior Vice President & Member of the Board
Masato KoikeSenior Vice President & Member of the Board
12 Fujikura Ltd.
Corporate Social Responsibility
Corporate Social Responsibility SystemThe Fujikura Group aims to behave in a responsible manner toward its business partners, society and the natural environment, contributing toward the realization of a sustainable society. We operate a balanced approach to addressing the various issues of human rights, employment conditions, product quality, corporate
ethics, compliance, risk management, and information security, with the ultimate goal of meeting our stakeholders’ expectations by raising the Company’s enterprise value. The following organizational chart shows the system utilized by Fujikura for overseeing and implementing corporate governance.
Corporate Governance SystemsFujikura ensures clarifi cation of operating responsibilities and an effi cient top management by adopting the executive offi cer system as well as the corporate auditor system, as a system that enables monitoring and supervision of management in the management decision-making process. We have divided the execution and supervision of management through the introduction of the executive offi cer system. The system defi nes the monitoring and supervising functions of Directors and requires them to monitor whether business operations comply with the relevant laws and regulations and the Company’s Articles of Incorporation. The activities of internal control with regard to daily operations are designed to supervise legal compliance in operational pro-cesses through the Internal Control System Development Division, the relevant departments at headquarters, and administrative organizations within each business segment. As a system for internal control, we have established manage-ment rules for documents and electronic information, and the storage of control management information. In addition, we review company-wide risks, promote a compliance system and manage a
whistle-blowing system through the Risk Management Committee and the Conduct Code Promotion Committee. As for control of the Group, we established the “Group Management Policy” to promote its common values and facilitate a shared sense of unity as well as improve the effectiveness of man-agement supervision, risk management and compliance systems throughout the Group. As for a mechanism to support Auditors’ operational audit and improve audit accuracy, we have formulated Directors’ responsibilities concerning the appointment and dismissal of employees supporting Auditors, independence from operating departments, and access to information required by Auditors. We also sets up regular occa-sions to exchange views with operating offi cers and ensure that opportunities are provided for Auditors to express their demands. Our system of internal controls will also cover our fi nancial report for the FY2008 reporting period and after. We have set up an organization to oversee this process, and FY2007 has been designated as a trial period, in preparation for the full-scale imple-mentation of this system.
Board of directors
Executive committee
Supervise Report results
Supervise/instruct Report results Report results
Stakeholders
Disclose information
CSR Activities Promotion Team
Legal Department
Security Export Administrative Division
Corporate Strategy Planning Division
Information disclosure, advertising and IRCompliance
Global Environment Division
Environment
Quality Assurance Division
Quality
Human Resource & General Affairs Division
Employee welfare, human rights and social contribution
Procurement Division
Market Research &Planning Department
Procurement and logistics
Business segment and group companies
Support/instruct Report/consult
Board of Auditors (Auditors)
Audit Division
Conduct Code Promotion Committee
Board of Directors (Directors)
Executive Committee
Executive officers
Business segment / the relevant divisions at headquarters
Affiliated companies
Accounting Auditor
Appointment
CooperationAudit
SupervisionAudit
Audit
Audit
Audit
Audit
CooperationAppointment/supervision
Appointment Appointment
General Meeting of Shareholders
Frame Format of the Fujikura Corporate Governance System
Accounting Auditor
Risk Management Committee
Compliance
Auditors (Board of Auditors)
13ANNUAL REPORT 2007
Corporate Social Responsibility
Risk Management
Fujikura classifi es risks to be managed into two groups: strategic
risks associated with business opportunities and operational risks
related to the conduct of business operations. Strategic risks are
managed under the aegis of top management (Board of Directors
and Executive Committee), while the Risk Management Committee
handles operational risks based on the Fujikura Risk Management
Regulations.
The Fujikura Risk Management Regulations also ensure that
top offi cials in the area of business affected are swiftly notifi ed when
critical situations arise and have created response mechanisms and
accountability frameworks for crisis management.
Compliance
We established a “Fujikura Code of Conduct,” basic rules that
executives, employees and all staff engaged in our business should
follow. It is the job of the Conduct Code Promotion Committee to
ensure that this code is respected. The Conduct Code Promotion
Committee consists of top management offi cials and full-time audi-
tors. The committee holds a meeting every three months to receive
reports on code of conduct compliance activities and problems
and other issues, and give necessary instructions.
We also have an internal report system as part of the code of
conduct. This system enables employees to report a compliance
problem or other issue to an external law fi rm without being penal-
ized. This report can be made anonymously. The details of the
report are immediately sent to related departments, who will then
take the necessary measures and report the results to the code of
conduct promotion committee.
Protection of Personal Information
1. Fujikura will build a companywide information security framework
and establish rules to protect personal information, to prevent
such information from being leaked, lost, damaged or otherwise
improperly handled.
2. Fujikura clarifi es the intended use when obtaining personal
information.
3. Fujikura only handles personal information for the intended use
and within the range reasonably accepted to have an equivalent
relationship to the intended use.
4. Fujikura does not disclose personal information to third parties
unless it is legally stipulated or Fujikura has informed consent.
5. Fujikura tries to ensure the transparency of personal information
it has and has established services such as an information center
for information providers.
Security of Electronic Information
Basic Policies
1. Fujikura will take appropriate human, physical and technological
measures to prevent unauthorized access, leakage, tampering,
destruction or other inappropriate handling of information assets.
Fujikura will also not be a perpetrator of such activities.
2. If a security breach should occur, Fujikura will promptly address
it to minimize damages.
3. Fujikura will ensure a high level of security by executing security
activities continuously and establishing a security management
framework to address new threats. We pledge to fulfi ll our social
responsibility to ensure the security of electronic information
through the above activities, gaining the trust of our customers,
stock holders, business partners and other stakeholders.
Measures to help prevent global warming
The Fujikura group is working to lower its emissions of greenhouse
gases by taking steps to improve the effi ciency of its use of energy
in its business operations. Under the Kyoto Protocol, Japan is
committed to reducing its emissions of greenhouse gases between
2008 and 2012 by 6% compared with the base year of 1990. The
Fujikura Group has for many years been working to raise the effi -
ciency of its use of energy in production processes, enabling it to
1Basic policies
Structure
2Basic rules
3Specific guidelines
Security standards related to electronic inform
ation
Security policies related
to electronic information
For proper management of information assets, rules that are standardized across the organization must be clearly stated so that information handling does not vary depending on the user
1
Behavior and criteria to be followed in order to ensure electronic information security2
Implementing procedures3
14 Fujikura Ltd.
realize energy conservation. Measures taken include the reduction
of energy amounts where not required, particularly by limiting the
use of air-conditioning equipment to certain areas of the Group’s
factories, and installing high-effi ciency lighting control devices.
Our Head Offi ce is located in Tokyo, and we are taking steps
to comply with Tokyo CO2 Emission Reduction Program (which
applies to over 1,000 places of business that use over a specifi ed
amount of energy) by reducing the carbon equivalents of the
electricity consumed by the Head Offi ce. In accordance with the
system operated by the Tokyo Metropolitan Government, we are to
submit to them a plan for reduction of energy consumption each
year from FY2005 to FY2010. The Tokyo Metropolitan government
evaluates the progress made, and the results of such evaluations
are made public on the Tokyo Metropolitan government’s website.
Currently, our evaluation stands at AA, indicating that our carbon
dioxide reduction rate surpasses the targeted fi gure by 5 percent-
age points.
Carbon dioxide emission
Target for FY2006: To accurately ascertain CO2 emissions
by Fujikura and its consolidated subsidiaries within Japan
The volume of carbon dioxide emitted by each individual business
facility and each company in the Fujikura Group in its operations
within Japan in FY2006 has been calculated utilizing the fi gures for
emission intensity (published by the electric power utility companies
from which we purchase our power) regarding the amount of car-
bon dioxide emissions per unit of electricity generated. (The fi gures
are adjusted to take into account the proportions of the different
fuels, with their differing carbon footprints, used to generate the
electricity. The emission coeffi cient for each fossil fuel is determined
by law.)
Improvement of energy effi ciency
Target: Reducing energy expenses in FY2006 (domestic
and overseas) as a percentage of sales by at least 1% for
domestic operations and at least 3% for overseas opera-
tions compared with the FY2005 level
We have set targets for improvement of the effi ciency of energy
use by Fujikura — expressed in terms of the cost of energy con-
sumed as a percentage of sales — in the form of reductions in the
energy-to-sales percentage for both manufacturing facilities and
offi ces within Japan and overseas, and are working to realize these
targets. As of FY2006, the cost of all energy consumed accounted
for 1.15% of total sales on a consolidated basis. While this fi gure
constitutes a reduction from the FY2005 level of 1.25%, the main
factors behind the decrease were the substantial rise in the price of
copper and the impact of the yen’s depreciation against the dollar,
both of which caused sales to record an all-time high.
The energy cost to sales ratio for Fujikura and its group
companies (including both manufacturing facilities and offi ces), in
FY2006 in Japan and overseas, represented a decrease of 8.2%
compared with FY2005 for domestic operations but an increase
of 8.5% for overseas operations. Measures were taken both
within Japan and overseas to improve energy conservation, but
in the case of our overseas operations, the rise in the price of oil
combined with the depreciation of the yen to push up the prices of
electric power and other fuels purchased, as a result of which the
ratio worsened compared with FY2005.
For the current term (FY2007) and afterward, we will be
making further efforts to improve the effi ciency of our usage of
electric power with the aim of improving the productivity indicators
(production volume in terms of length/weight of wires and cables,
number of pieces of equipment, fl oor space utilized, etc.) for each
manufacturing facility.
(millions of yen)
700,000
0
100,000
300,000
500,000
Energy cost ratio (consolidated basis)
FY2003 FY2004 FY2005 FY2006
331,325
1.84
360,752
1.64
503,090
1.25
645,984
1.15
600,000
200,000
400,000
(%)
2.0
0.0
0.5
1.0
1.5
Sales (consolidated; left scale) Ratio (right scale)
CO2 (tons)
70,000
0
10,000
20,000
30,000
40,000
50,000
60,000
Emissions of greenhouse gases in FY2006 by the Fujikura Group(operations in Japan)
Fujikura (parent) Group companies Fujikura (parent)
Manufacturing facilities Offices
Group companies
58,544
64,497
4,061188
15ANNUAL REPORT 2007
Corporate Social Responsibility
Reduction in waste emissions
Target: Cutting landfi ll portion of waste products emitted by
the Fujikura Group in Japan to 5% or less
One of the major issues for manufacturers these days is their
responsibility to reduce the volume of the waste emissions from
their factories, and to recycle (or to assist in the recycling of) their
products when their useful lives are over. By reducing the volume
of marketable material generated by production processes (with
the exception of materials that can be repurchased at a profi t even
after deduction of transportation costs), the manufacturer is able
to decrease the total volume of waste emitted, and thereby reduce
the amount that goes to landfi ll sites. In addition, manufacturers
are being urged to contribute as far as possible to the realization
of a society dedicated to maximizing the effective reuse of natural
resources.
Fujikura has set itself the target for FY2010 of reducing the
volume of industrial waste for fi nal disposal (i.e. landfi ll) by 82%
compared with the volume for the base year of FY1995 as specifi ed
by the Japanese Electric Wire & Cable Makers’ Association (this
standard was adopted in response to the recommendations in the
Japan Business Federation guidelines for voluntary environmental
preservation measures). In common with other companies in our
industry, we have since the beginning been collecting scrap copper
and aluminum for recycling, as these metals have always been
treated as marketable resources rather than industrial waste. From
here onward, we intend to apply the same active recycling policy to
other materials as well.
The companies in the Fujikura Group are taking steps to
reduce wastage of raw materials during all production processes,
and are separately recovering waste for effective reuse, thereby
helping to lower the volume of waste that proceeds to the “fi nal
disposal” stage, i.e. landfi ll or incineration (excluding combustion
where the heat generated is effectively employed).
With effect from FY2006, the landfi ll waste volume reduction
activities of the Fujikura Group have been applied to all consolidated
subsidiaries of Fujikura operating within Japan.
The total waste emission volume of Fujikura Ltd. and the 14
other companies in its group for FY2006 amounted to 16,341 tons,
of which only 957 tons, or 5.85%, was consigned for fi nal disposal
at landfi ll sites. As the targeted level for the term was 5%, this
constitutes a failure to achieve our goal under our waste reduction
plan.
Currently, waste produced by us that is consigned to landfi ll
sites includes used wires and cables coated with a mixture of
polyethylene and eco-material, or with a mixture of polyethylene
and PVC. To facilitate recycling of the metals, we are working on
ways to easily strip these coatings from such wires and cables.
(t)
18,000
0
2,000
6,000
10,000
Fujikura Ltd. Fujikura Group(excluding parent;
in Japan)
Total(15 group companies
in Japan)
270.0 779.9 956.7
3.49
9.06
5.857,735 8,606
16,34116,000
12,000
14,000
4,000
8,000
(%)
10.0
0.0
2.0
4.0
6.0
8.0
Landfill volume (left scale)
Emission volume (left scale)
Landfill ratio (right scale)
16 Fujikura Ltd.
Management’s Analysis of Financial Position and Operating Results
Analysis of Financial Position and Operating Results
(1) Operating Results for the Fiscal Year to March 2007
Net sales for the year under review rose ¥142.8 billion year-on-year to ¥645.9
billion on a consolidated basis, driven by growth in the Telecommunications,
Metal Cable & Systems, and Electronics & Auto segments.
Income from operations declined ¥5.2 billion year-on-year to ¥34.5
billion, refl ecting the impact of sales price reductions for FPC (fl exible printed
circuits), our mainstay product of the Electronics & Auto segment. Recurring
income fell ¥3.6 billion to ¥32.7 billion.
Net income for the term under review declined ¥3.5 billion to ¥21.4
billion, marking an increase in revenues and a decrease in earnings.
(2) Signifi cant Factors Affecting the Results of Operations
The Telecommunications segment prospered on the robust demand for
FTTH services, and we continued making aggressive capital investments in
the Electronics & Auto segment. Moreover, Fujikura gained a European base
for its automotive electronics business through the acquisition of a majority
stake in a local company, as part of active efforts in this segment. However,
in line with the rapid rise in materials prices worldwide, copper prices surged,
which has created a severe situation for our industrial cable operations, as
copper accounts for more than half the production cost of cables. Due to
fi erce price competition in the digital home appliances market, we have been
forced to substantially reduce our selling prices for FPC, our leading product
in this fi eld.
(3) Analysis of Capital Resources and Liquidity
Cash fl ow provided by operating activities totaled ¥39.2 billion, unchanged
from the previous year’s level. Cash infl ows, mainly from income before
income taxes (¥32.7 billion) and depreciation expenses (¥26.9 billion), were
partially offset by cash outfl ows, principally from an increase of ¥9.4 billion in
trade receivables. Net cash used in investment activities, centering primarily
on plant, property and equipment investments, totaled ¥47.7 billion, up ¥28.9
billion from the previous year. Net cash from fi nancing activities, centering
mainly on fund procurement through loans, came to ¥1.2 billion, a ¥21.0
billion improvement over the previous year.
As a result of the above, cash and cash equivalents at the end of the
term totaled ¥22.1 billion, a decline of ¥3.2 billion year-on-year.
(4) Issues Facing Management and Future Directions
The Fujikura Group will continue to shift management resources to promising
fi elds, and to base its growth strategy on strengthened and expanded
operating fundamentals.
In the Telecommunications segment, we expect to see ongoing expan-
sion in demand worldwide for FTTH. So as not to miss this opportunity,
Fujikura will undertake expansion of its sales network not only in the U.S. but
also in China, India, Russia, the Middle East and Africa. In addition, strong per-
formances by our optical fi ber cables and optical fusion splicers are widely
attributable to our cost competitiveness, which we have raised over the long-
term period. We will continue to make efforts to maximize this strength.
In the Electronics & Auto segment, although an overall high level
of growth is predicted, price competition is expected to increase amid a
shortening of the product lifecycle. Players in this fi eld are being required
to pursue bold investment strategies for profi t generation, even though
a cautious stance is required for decision-making on individual projects.
We will continue to improve manufacturing systems for FPC, connectors,
and components for use in hard disk drives. We will also keep working to
enhance our production technologies capabilities to raise production yields
and improve product quality.
In the Metal Cable & Systems segment, there is plenty of opportunity
available in this mature market for new product development as well as for
the cultivation of new markets. We will therefore work persistently to imple-
ment various measures, and by streamlining production facilities and raising
our cost competitiveness, endeavor to improve our earnings performance.
Risks Associated with Business
Risks associated with the Fujikura Group’s business that may affect its
operating results, stock price or fi nancial position, include, but are not limited
to, the following.
(1) Market Demand Trends
Results of operations for the Fujikura Group may be affected by trends in
capital investment in the telecommunications industry (the principal source
of demand for our products), in addition to capital investment trends in the
electronics, automotive and electric power industries.
(2) Currency Exchange Rate Fluctuations
The Fujikura Group takes steps to minimize the negative effects of
exchange-rate fl uctuations through hedged currency transactions within the
scope of ordinary transactions backed by actual demand, when conducting
export transactions in foreign currencies. The risk of fl uctuations in currency
exchange rates cannot be completely avoided, however, and these fl uctua-
tions could adversely affect the Group’s business results.
(3) Fluctuations in Raw Material Prices
The price of copper, a major material used in our products, fl uctuates in
accordance with international trends in supply and demand. Because a rise
in purchasing costs resulting from a steep rise in the price of copper cannot
immediately be transferred to product prices, signifi cant fl uctuations in the
price of copper could adversely affect the Group’s business results.
(4) Product Defects
The Group manufactures a wide range of products following strict quality
control standards, but cannot guarantee that every one of its products will
be defect-free or will not be the subject of quality complaints in the future.
We have taken out insurance to cover defect liability compensation, but we
cannot guarantee that the compensation total will always be fully covered by
this insurance.
(5) Laws and Regulations
The Group’s overseas business activities are subject to the laws in force in
each of the countries in which it operates. These regulations include govern-
ment permits needed for conducting business and making investments,
regulations relating to trading transactions and exporting and importing,
and laws and regulations relating to taxation, fi nancial transactions, and the
environment. The Group operates its business in strict conformity with these
laws and regulations. Its business results could be adversely affected if its
operations are now more strictly restricted or costs pushed up by diffi culty in
continuing to observe laws and regulations under these circumstances.
17ANNUAL REPORT 2007
Main Consolidated Subsidiaries
Investor Information
Head Offi ce 5-1, Kiba 1-chome, Koto-ku Tokyo 135-8512, Japan E-mail: [email protected]
Year of Establishment 1885
Date of Incorporation March 18, 1910
Common Stock Authorized: 1,190,000,000 shares Issued: 376,263,421 shares Capital: ¥53,075,807,507
Number of Shareholders 36,927
Independent Certified Public Accountants Misuzu Audit Corporation – A network fi rm of PricewaterhouseCoopers Grant Thornton Taiyo ASG
Further Information For further Information and additional copies
of our Annual Report, please contact the Investor Relations Group at the Head Offi ce.
Equity Ownership Paid-in Capital Percentage, Including (Millions ofCompany Name Indirect Ownership Each Currency) Business Overview
Nishi Nippon Electric Wire & Cable Co., Ltd. 60.7% ¥960 Manufacture and Sale of Cables
Yonezawa Electric Wire Co., Ltd. 92.8 ¥1,022 Manufacture and Sale of Cables
Dai-ichi Denshi Kogyo Co., Ltd. 86.6 ¥1,075 Manufacture of Connectors and Co-Axial Switches
Tohoku Fujikura Ltd. 100.0 ¥1,000 Manufacture and Sale of Electronics Parts
Fujikura Development Ltd. 100.0 ¥1,150 Real Estate and Insurance
Fujikura Dia Cable Ltd. 66.0 ¥400 Sales of Cables
DDK (Thailand) Ltd. 86.6 B.T.730 Manufacture of Connectors
Fujikura (Thailand) Ltd. 100.0 B.T.1,100 Manufacture and Sale of Electronic Materials
LTEC Ltd. 99.5 B.T.500 Manufacture and Sale of Electronic Materials
PCTT Ltd. 100.0 B.T.1,000 Manufacture, Assembling, and Sale of Printed Circuits
America Fujikura Ltd. 100.0 US$102 Manufacture and Sale of Optical Components and Equipment/Power Cables
Other than the above, 61 consolidated subsidiaries.
As of March 31, 2007
As of March 31, 2007
Major Shareholders
Number of Ratio of Shares Held Shareholding (Thousands) (%)
Japan Trustee Services Bank, Ltd. (Trust Account) 19,622 5.21
The Master Trust Bank of Japan, Ltd. (Trust Account) 14,550 3.87
Mitsui Life Insurance Company Limited 10,192 2.71
Japan Trustee Services Bank, Ltd.(Holder of Retirement Benefi t Trust for The ChuoMitsui Trust and Banking Company, Limited) 9,777 2.60
Sumitomo Mitsui Banking Corporation 8,456 2.25
The Sumitomo Trust and Banking Co., Ltd.(Trust Account B) 7,763 2.06
The Shizuoka Bank, Ltd. 7,713 2.05
Mitsui Sumitomo Insurance Company, Limited 6,891 1.83
Deutsche Bank AG London-BB Irish Residents 619 6,597 1.75
Dowa Metals & Mining Co., Ltd. 6,453 1.72
37ANNUAL REPORT 2007
