March 22, 2021

Overview of New Managerial

Structure and Progress of

Operational Turnaround

Masahiko Ito, President & CEO

Introduction• Last September, we formulated the 100-Day Plan for an operational turnaround and

took actions toward a fundamental reform of our managerial culture and business

structure.

• To enable the unreserved selection and concentration of existing businesses, stronger

corporate governance, and a more muscular organization and structure, we will

change our managerial and organizational structures.

• To quickly begin managing under the new structure in the next fiscal year, we have

decided to go ahead and change the managerial structure effective from April 1,

including directors, instead of waiting until the reappointment of officers at the

General Meeting of Shareholders scheduled for June of this year.

• Everyone at Fujikura is resolved to work as one in the push to revitalize the

Company's business.

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1. Overview of the New Managerial Structure

1. Unreserved selection and concentration of

existing businesses

2. Stronger corporate governance

Change to Managerial Structure (1)

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Key Points

• Installation of CEO and COO

The CEO will support the COO and focus on solutions to company-

wide business challenges and structural reform.

The COO will implement core businesses.

• Expanded executive responsibility for executive officers

Half as many executive officers, with revised functions and authority

(22 → 11)

With the CEO's support, the COO will focus on core businesses.

A leaner organization will act with greater speed.

Change to Managerial Structure (2)

*CEO: Chief Executive Officer*COO: Chief Operating Officer

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Unreserved Selection and

Concentration of Existing Businesses

Change to Managerial Structure (3) Stronger Corporate Governance

• 50% of Board of Directors members will be outside directors.

• Other additions include the Corporate Governance Division.

For more standardized management

R&D

Sales

Corporate Staff

Audit & Supervisory Committee members (outside)

Audit & Supervisory Committee members (outside)

Audit & Supervisory Committee members (in-house)

Audit & Supervisory Committee members (outside)

Electronics, Automotive & Connector Company

President

Power & Telecommunication Systems Company

Audit & Supervisory Committee members (outside)

United States Business

Staff & Real Estate (Accounting, etc.)

New Business

Audit & Supervisory Committee members (outside)

COO

Member of the Board

Audit & Supervisory Committee members (outside)

Audit & Supervisory Committee members (outside)

Audit & Supervisory Committee members (in-house)

Audit & Supervisory Committee members (outside)

CEO

Member of the Board

Audit & Supervisory Committee members (outside)

Audit & Supervisory Committee members (outside)

Board of Directors composition

(from July 2021)

Board of Directors composition

(as of March 2021)

*In-house5 directors

*Outside5 directors

• Fewer executive officers and board members →

Board of Directors will discuss company-wide issues

without favoring departmental interests

• Restraint imposed by higher share of outside directors

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Managerial Structure from April 2021

Change to Managerial Structure (4) Managerial Structure Chart

CEO

Other DirectorsCOO

Core Businesses

- Telecommunication Systems

- PC

- Connector

- Automotive

- Electronic Component

- AFL*

- Industrial Wires

- Real Estate

Structural Reform

Task Force

- New Business

Creation and

Research &

Development

- Corporate

- Quality

Board of Directors (*50% outside directors)

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*AFL Telecommunications LLC

Managerial overhaul: different executive officer

structure and organizational reform

Leaner, faster decision-making framework

With unwavering determination, we will focus heavily on

enacting further reform

Change to Managerial Structure (5) Message

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2. Progress of Operational Turnaround

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(* From materials published on June 10, 2020)

2016 2019

Abandon the 2020 Mid-Term Business Plan mid-course& move to the operational

turnaround phase

Current Mid-TermBusiness Plan

Operational Turnaround Strategic Turnaround

100-Day Plan・Minimize cash outflow・Reduce costs・Formulate an operational

turnaround plan

2nd HalfImplement the operationalturnaround plan

Put the company on the path of growth through a new Mid-Term Business Plan

2020 Mid-TermBusiness Plan

Radical reformof the management

& business structure

Creating corporate value through

sustained growth

We will establish an operational turnaround period, albeit a short one to normalize operations then disclose the operational turnaround plan and policies in the 2nd half of FY2020.

The new Mid-Term Business Plan incorporating our post-coronavirus growth strategy will be disclosed and implemented after we have successfully turned operations around (strategic turnaround).

Abandoning the Mid-Term Business Plan and Moving to the Operational Turnaround Phase

• The actions explained upon the release of the 100-Day Plan and first-half results in

September 2020 have largely proceeded as expected.

Status of Turnaround Plan Execution (1)

Type Action in FY2020

Early retirement, etc. ~200 at head office (completed by Dec 31, 2020)

Improved finances

Sales of real estate (Dec 2020 announcement: total 3.6 billion yen in

expected extraordinary income)

Procure 40 billion yen in capital-like funds through hybrid loan(s)

Business location consolidation,

etc.

WH: streamline support units, close some European locations

FPC: staff reductions, mostly at overseas locations

Managerial overhaulFewer board members and executive officers (announced today)

(to be presented at June 2021 General Meeting)

Larger optical fiber cable

business

Begin capital investment, contribute in H2 FY2021

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Status of Turnaround Plan Execution (2)

(Unit: billion yen)

SegmentFY2020

Q1-Q3 FY Comments

Power & Telecommunication Systems Company 2.4 3.2

[Impairment]

- FY2019: optical fiber production equipment (2.2)

- FY2019: fiber laser production equipment (0.6)

Electronics Business Company 0.3 0.6

Automotive Products Business Company 3.0 4.0

[Impairment]

- FY2019: wire harness production equipment in Europe, etc.

(1.5)

[Structural reform costs]

- FY2019/20: staff reductions in Europe, Asia, N./S. America

(2.5)

Electronics, Automotive & Connector Company 3.3 4.6

Other 0 0.4[Structural reform costs]

- FY2020: staff reductions at head office and elsewhere (0.4)

Total 5.7 8.2

FY2020 expectations: lower depreciation costs due to impairment and improved business structure

(*From Q3 results released on Feb 8, 2021)

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Conclusion

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Promise made with release of first-half results• Commitment to executing the turnaround plan for all stakeholders

→ We want to follow the PDCA cycle and fully carry out the turnaround plan

• Suitable proposals/execution for additional action

• Actions taken by businesses Telecommunications: a core domain of the company (focus on business resources and continue

spending on growth)

FPC & automotive WH: downsize to appropriate level

• Selective capital investment during turnaround, continuing with policy for a much reduced

total

• Implement unreserved reform, acting with unwavering determination as a united company

We will enact further reform through a managerial overhaul.

Disclaimer: These materials contain Fujikura’s management policy (intentions) for FY2020. Statements about sales, profits,

and other forward-looking statements about FY2020 and future fiscal years are based on market decisions made according

to the latest information available at the time. Fujikura’s intentions in regard to investments have been quantified, but may

change at some point in the future due to changes in the business environment or other factors.