Fujikura : Notice of revision of full-year consolidated business forecasts and dividends (resumption of dividend) for the year ending March 31 2022 and results of the Special Career Change Support System.

27-Apr-22

Dear All

Company Name:	Fujikura Ltd.
Representative:	Naoki Okada, Director of President, CEO
(Code: 5803 Prime market of TSE)
Inquiries:	Toru Hamasuna, General Manager of
Corporate Strategy Planning Division
(TEL. [phone])

Notice of revision of full-year consolidated business forecasts and dividends (resumption of dividend) for the year ending March 31 2022 and results of the Special Career Change Support System.

The Company (Fujikura Ltd.) announces revisions to our consolidated business forecast for the fiscal year ending March 31, 2022, announced on February 9, 2022, as well as dividend payments as follows.

The Company decided to implement the Special Career Change Support on February 9, 2022, and closed the solicitation for this program on April 22, 2022. As a result, the number of applications received far exceeded estimates, and the company announced that it has recorded the loss on the implementation of the scheme.

1. Forecast of Consolidated Business Performance for the year ending March 31 2022

Forecast for the Full-year of the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Consolidated Basis)

(Unit: Million yen)

Net Sales	Operating Income	Ordinary Income	Profit Attributable to Owners of Parent	Net Income per Share (Yen)
The Previous Forecast (A)	650,500	32,000	27,500	17,000	61.68
Current Forecast (B)	670,000	38,000	34,000	39,000	141.46
Change (B - A)	19,500	6,000	6,500	22,000
Changed Ratio (%)	3.0	18.8	23.6	129.4
Result for the Full-year of the Previous Fiscal Year	643,736	24,422	18,380	△ 5,369	△ 19.50

※Reasons for the Revision of the Business Forecast

Sales, operating income and ordinary income is affected by copper prices, high demand for data centers and FTTx in the Power & Telecommunication Systems Division and high demand for Stay Home in the Electronics Business Division.

Net profit attributable to shareholders of the parent company increased significantly compared to the previous forecast, mainly due to the above-mentioned factors for increased profit, as well as the fact that the risk of loss due to the re-expansion of Covid-19 had been conservatively factored in, but this risk is not expected to materialize, and a gain on the sale of fixed assets has been recorded.

2.Determination of Year-end Dividends

Dividend
1Q	2Q	3Q	4Q	Total
The prior Forecast （February 9, 2022）	Yen －	Yen 0.00	Yen －	Yen －	Yen －
This time Forecast	－	－	－	10.00	10.00
Result in FY2021	－	0.00	－
Result in FY2020	－	0.00	－	0.00	0.00

※ Reason

The company aims to achieve a payout ratio of 20%, taking into account a comprehensive consideration of the performance situation, the level of earnings per share and internal reserves in view of future business development.

However, the year-end dividend for the year ending 31 March 2020 and the dividend for the year ending 31 March 2021 are subject to a number of factors, including the recording of impairment losses. The company has regrettably decided not to pay a dividend due to the net loss for the year.

As stated in the reasons for the revision of the forecast for the year ending 31 March 2022, the business has remained strong and structural reforms have been completed.

The company has reached a certain point in the process. In addition, from 1st April 2022 onwards, the aim is to move out of the business turnaround phase and into the growth phase.

Based on these considerations, and taking into account the overall situation, we have decided that the environment for resumption of dividend payments is now in place, and we plan to pay a year-end dividend of 10 yen per share for the year ending 31 March 2022.

3.Application Results of the Special Career Change Support System ① Reasons for implementing the Special Career Change Support System

Our company has decided to embark on a sustainable growth phase from fiscal 2022, with the aim of achieving a business revitalization phase. In this new phase, our company aims to transform itself into a resilient organization, while at the same time achieving optimal human resource allocation and personnel structure in response to changes in the environment. This program provides special support to employees who wish to demonstrate their abilities and experiences outside of our company when thinking about an organization after such a transformation, and who are planning to embark on a new career or review their life plans for the future.

② Outline of the Special Career Change Support System

• (1) Eligible employees: Full-time regular employees and employees continuing to work after reaching the mandatory retirement age who were 40 years of age or older and had worked for 3 years or more as of June 30, 2022 and are recognized by The Company.

• (2) Application period: March 28, 2022 - April 22

• (3) Retirement date: June 30, 2022

• (4) Number of employees: Approximately 120

• (5) Preferential treatment: A special additional allowance based on monthly salary (up to 36 months) and the purchase amount of regular leave (up to 40 days) are added to the company's voluntary retirement allowance.

In addition, re-employment support will be provided to applicants through external consultation.

③ Result of the offering

Number of applicants 215 ④ Impact on performance

As a result of the above measures, The Company will post an extraordinary loss of 3.1 billion yen on a non-consolidated basis for the fiscal year ending March 2022.

These figures are included in the full-year consolidated earnings forecast.

In addition, the cost reduction effect of The Company group as a whole by implementing this measure is expected to be approximately 2.3 billion yen per year.

Notes： The aforementioned forecasts are based on the information currently available to the "Company"

Actual results may differ from the forecasts due to various factors arising in the future.