Fujikura : FY2025Q3 Financial Results Conference Call Q&A Summary

February 17, 2026

Date and Time: Monday, February 9, 2026, 15:00-16:08 Speakers: Naoki Okada, Director, President and CEO

Kazuhito Iijima, Director, CFO

• 3rdQuarter Financial results and 4thQuarter Forecast

  Q1. What is the foreign exchange sensitivity for this fiscal year?

  A1. For this fiscal year, we expect a positive impact of JPY 1.7 billion on operating profit on an annual basis for every JPY 1 depreciation of the yen. We expect foreign exchange sensitivity to increase slightly toward Q4.

  Q2. In the Telecommunication Systems business, despite yen depreciation from Q2 to Q3, sales and profits were flat. What is the reason?

  A2. Although demand, particularly from data center customers, has been on an expanding trend, sales and profits remained flat due to the impact of certain projects originally scheduled for Q3 being deferred to Q4.

  Q3. What is driving higher sales, profits, and margin improvement from Q3 to Q4 in the Telecommunication Systems business?

  A3. In Q4, we expect higher sales and profits driven by continued strong data center demand and the recognition of projects deferred from Q3. We also anticipate margin improvement due to a more favorable product mix and the impact of price revisions.

• Capacity Expansion

  Q4. You indicated that fiber optic cable capacity in FY2026 will increase about 30% YoY. Can this expansion continue in FY2027 and FY2028?

  A4. We expect the data center market to continue growing at 20-30% annually. In FY2026, we believe capacity expansion in line with market growth will be possible through external optical fiber procurement and productivity improvements at existing facilities. These efforts will continue beyond FY2027, and we are also preparing for the partial early start-up of the new Sakura plant planned for FY2029, with the aim of building a production system capable of supporting sustained demand growth over the mid to long term.

  Q5. Can we expect fiber optic cable sales to grow at a similar rate as the 20-30% capacity increase?

  A5. Demand for data center remains strong, and we expect sales expansion. In addition, we will actively expand businesses not directly dependent on fiber capacity, such as optical connectors, components, and engineering.

  Q6. Please explain the status of external fiber procurement and quality requirements.

  A6. Externally procured fiber is limited to products meeting our standards, including compatibility with SWR®/WTC®. We will continue to use external procurement while expanding in-house capacity through next-generation plants.

  Q7. We recognize that global demand for optical fiber is increasing and that market prices have been rising. Given this situation, how do you see the impact of external optical fiber procurement on profit margins?

  A7. While prices for externally procured optical fiber have been increasing, we believe we can continue to maintain a certain level of margins by leveraging our strengths in high-value-added, ultra-high-fiber-count optical cable manufacturing. As rising optical fiber prices are also expected to drive higher cable prices, we will pursue appropriate pricing actions while carefully monitoring market trends.

  Q8. Regarding annual MT ferrule production volume, we believe that as of November 7 you mentioned an increase of approximately 1.5 times compared with the previous fiscal year-end. Does this mean that it has increased to around 2 times as of the end of the 3Q?

  A8. On a capacity basis, it is expected to double YoY by the end of FY2025. Actual annual production is expected to be about 1.7 times the amount due to phased ramp-up.

  Q9. We recognize that MT ferrule production capacity has so far been expanded through equipment investments. As you consider further capacity expansion going forward, will it become necessary to construct new factory buildings or undertake similar investments?

  A9. MT ferrule capacity can be expanded with relatively small investments and short lead times, allowing us to respond flexibly to demand. We expect MT ferrule production volume to increase by about 1.7 times YoY in FY2025, while capacity is projected to double by the end of the fiscal year. Given the continued strength in demand, we are also considering further capacity expansion investments.

  Q10. Regarding the signing of the framework agreement with the U.S. Department of Commerce, could you share any new information since November 7?

  A10. We are continuing information gatherings and discussions. Demand related to this framework is expected to be substantial, and we are considering not only equipment investment but also potential new factory construction.

  Q11. How far ahead are you planning for U.S. AI infrastructure-related demand?

  A11. While U.S. factory construction is one of options, we must carefully balance difficulty and cost. We already operate SWR®/WTC® processes in the U.S., and some level of continued investment is necessary regardless of this project.

  Furthermore, we recognize that not all the expected demand will be fully committed to Fujikura Ltd. Amid a globally constrained supply of optical fiber, accurately assessing future demand visibility and the certainty of return on investment remains challenging. As such, we will continue to carefully evaluate and make prudent decisions regarding the timing of investments.

  Q12. How will you control risks related to new factory investments?

  A12. We are still gathering information and evaluating demand scale, infrastructure constraints such as power supply, and market trends. In addition, as factory construction requires a certain period from commencement to the start of operations, we will make investment decisions once a reasonable level of clarity regarding demand prospects has been established.

• Business Environment

Q13. What are the technical challenges and growth outlook for MMC connectors?

A13. While MPO currently represents over 80% of the multi-fiber optical connector market, we view MMC as having relatively higher growth potential going forward. Based on these market dynamics, we believe it is important to strengthen our efforts in MMC over the mid- to longterm. As we already have MMC manufacturing capabilities, we will appropriately address future demand by carefully assessing market trends and the adoption of international standards by manufacturers of transmission equipment.

Q14. We understand that some companies are stepping up investments to expand capacity and market share in MMC connectors. Has there been any change in the competitive landscape?

A14. At present, demand for MT ferrules used in MPO connectors remains strong, and we are in a situation where we need to consider an additional round of capacity expansion investments. On the other hand, from a mid- to long-term perspective, we expect demand for smaller-form-factor MMC connectors to expand. We aim to maintain and expand our market share by strengthening our competitive advantage in MMC as well, leveraging our strengths in high quality and advanced manufacturing technologies.

Q15. Please explain the data center engineering business and growth outlook.

A15. This business mainly involves optical fiber installation and connection work within data centers, including connections using connectors and fusion splicers, and has experienced rapid growth this fiscal year. Although many data center construction projects are progressing across the U.S., the projects we have captured to date remain limited, and we will continue our efforts to expand orders.

Q16. Will engineering business drive fusion splicer sales?

A16. In engineering business, skilled technicians and high-performance optical fiber fusion splicers are essential to achieve fast and high-quality fusion splicing. We aim to pursue growth in both engineering business and optical fiber fusion splicers.