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Fujikura's Prestigious Recognition in Corporate Governance

Fujikura Ltd., led by its President and CEO Naoki Okada, has achieved a significant milestone by winning the Minister of Economy, Trade and Industry Award at the Corporate Governance of the Year 2025 event hosted by the Japan Directors Association. This accolade marks the first time Fujikura has been recognized at this prestigious award ceremony, highlighting its commitment to exemplary corporate governance practices.

Understanding the Corporate Governance of the Year Award

Since its inception in 2015, the Corporate Governance of the Year award has aimed to position corporate governance as a critical pillar for corporate growth strategies, supported by the government. This annual event acknowledges companies that actively contribute to mid- to long-term growth through effective governance measures. This year's award selection process for the Minister's award focused on identifying companies that have engaged in thoughtful practices around the appointment and succession planning for executives, ensuring that these appointments align with strategies to enhance organizational profitability.

Fujikura was selected based on five key considerations reflecting its innovative governance strategies amidst a challenging business landscape:

1. Strategic Succession Planning

Fujikura’s current president emerged from a well-defined succession program established by his predecessor. This program involved rigorous assessments and practical training opportunities that helped identify and develop multiple candidates for the president’s role. Upon his appointment in 2022, he had already led initiatives under the company's critical '100-Day Plan' aimed at reviving the business during a period of significant operational crisis.

2. Governance Aligned with Business Strategy

In tandem with the new mid-term management plan commencing in 2026, Fujikura has reassessed its board of directors’ skills matrix to ensure alignment with the organization's strategic objectives. The Nomination Advisory Committee is actively involved in scrutinizing the nomination and dismissal processes for directors and takes an active role in selecting external board members, thus reinforcing governance that drives profitability.

3. Development of Strategic Talent

Fujikura emphasizes the importance of storytelling in its corporate strategy and has implemented a comprehensive talent development initiative. This program ensures that employees across various age groups engage in discussions about corporate strategy and recovery from crises, allowing them to gain insightful exposure to management practices and strategies that prepare them for future leadership roles.

4. Effective Board Composition

Following significant reforms during critical periods, Fujikura is committed to continuously improving the functionality of its board of directors. The company aims to maintain a board with a majority of external directors and has onboarded seasoned executives from global firms to enhance the governance framework, ensuring alignment with corporate strategies while addressing ongoing challenges.

5. Strong Financial Performance

Since 2020, Fujikura has focused on refining its management practices, leading to enhanced profitability and operational efficiency. The company has recorded sequential quarterly increases in net profits, achieving historic highs and earning favorable market evaluations reflected in rising performance metrics such as ROE and ROA.

For more comprehensive details about their governance and achievements, check out Fujikura's Corporate Governance and Fujikura Governance Overview.

Looking Ahead

Moving forward, Fujikura pledges to continue strengthening its corporate governance framework to secure a sustainable growth trajectory and improve long-term corporate value. Their goal is to ensure a governance structure that is not only transparent and efficient but also resilient against future challenges, underpinning their commitment to compliance, performance, and strategic alignment.