C S R Report 2020

CSR Promotion Department
2-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8370, JapanTEL 03-3212-6571 FAX 03-5220-9766
URL https://www.furukawakk.co.jp/e_index.htm
Published in November 2020

In April 2020, FURUKAWA CO., LTD. received a Development Bank of Japan loan under the
DBJ Environmentally Rated Loan Program, having obtained the system’s highest rating as
a “company with particularly advanced environmental programs.”

Management Philosophy (Established August 8, 2015)
The Furukawa Company Group will remain indispensable to society by always embracing thespirit of challenge, advancing the technologies that have underpinned the foundation ofsociety that originated in mining development.
Action Guidelines (Established August 8, 2015)
In order to live up to our Management Philosophy, we put our Action Guidelines of Innovation,
Creativity, and Harmony into practice, always bearing in mind the three key words that best
represent the spirit of our founder: Luck, Stolidity, and Perseverance.
Innovation We will work constantly at self-innovation by embracing a future-oriented mindset.
Creativity We will seek to create reliable, appealing products that meet market needs.
Harmony We will improve management transparency and contribute to the development ofa society that is in harmony with the environment.

Vision for 2025

Editorial Policy
In order to remain indispensable to society, the Furukawa Company
Group makes efforts to contribute to resolving social issues andachieving SDGs. We created this report to communicate theGroup’s approach to CSR and our social initiatives, environmental
initiatives, and other activities to promote CSR to our stakeholders
in a straightforward manner.

Report Period

FURUKAWA Power & Passion 150

This report mainly covers results from fiscal 2020 (April 1, 2019 toMarch 31, 2020), but also initiatives from the past as well as somefrom fiscal 2021.
Note that the organization and titles are current as of July 31, 2020.

- Targeting consolidated annual operating income regularly in excess of ¥15 billion as weapproach our 150th anniversary in fiscal 2025. -Environmental Data
Manufacturing Division of Furukawa Industrial Machinery
Systems Co. Ltd.;
Takasaki Yoshii Works of Furukawa Rock Drill Co., Ltd.;
Sakura Works of Furukawa Unic Corporation;
Iwaki Works, Semiconductor Material Production Section(Semiconductor Material Plant), and Optical Parts Works Production
Section (Optical Parts Plant) of Furukawa Denshi Co., Ltd.;
Osaka Works of Furukawa Chemicals Co., Ltd.;
Ashio Office of Furukawa Co., Ltd.;
Furukawa Castec Co., Ltd.;
Ashio Rock Drill Co., Ltd.; and FRD Iwaki Co., Ltd.
Environmental Accounting
Environmental data report scope, Advanced Technology
Department, Material Research & Development Department,
and N Project Department of Furukawa Co., Ltd.
Other
Furukawa Co., Ltd. and consolidated subsidiaries“Become a corporate group that leverages its reputation for category
leadership and uniqueness to deliver growth.”

Policies for Achieving Vision for 2025
1 Increase the value of the Furukawa brandthrough “marketing-based management”
that incorporates CSV* perspectives

We will incorporate marketing into the core ofmanagement to provide products and services
recognized as valuable in changing markets, as well as
to resolve issues and problems faced by customers,
with the aims of increasing corporate value andachieving sustained growth. We will also strive toachieve the Sustainable Development Goals (SDGs)
and otherwise resolve various social issues, including
such domestic issues as building national resilienceand the declining working-age population, and thus
help realize a sustainable society.
①Reinforce technological sales capabilities (proposals
and solutions) reflecting customer needs②Develop products, technologies and services thatmeet market needs③Achieve category-leading positions by concentratingon niche products that have competitive advantages
and using differentiation strategy④Cultivate and create new markets and productcategories, and build a new business model⑤Enhance our products, technologies, and services,which underpin our social infrastructure, to help
resolve social issues* CSV: Creating shared value (CSV) is a management framework thatenables companies to co-create social value and corporate value by
tackling social, environmental, and other issues.

2 Sustainably expand the Machinery Business①Reinforce revenue bases in growing overseas
markets, mainly in business related to infrastructure
and resource development②Strengthen and enhance stock business③Maximize business opportunities by demonstrating
comprehensive Group competences and reinforcing
engineering strengths
3 Strengthen and expand our humanresource bases①Build vibrant human resources and corporate culture
for a new Furukawa②Secure, utilize, and develop diverse human resources
in Japan and overseas③Put even more effort into training sales and marketing
personnel

4 Actively promote investments to increase

corporate value①Make proactive capital investments necessary for growth②Expand business through strategic M&A and alliances

5 Establish a robust corporate foundation①Increase corporate value by improving profitability andcapital efficiency, targeting ROE of more than 10%②Establish a strong financial base③Achieve balanced appropriations between
investments for growth and return to shareholders④Increase corporate value by emphasizing businesspractices that reflect CSR/ESG issues recognized
and to be solved by the Group

Partial revisions to Vision for 2025 “Furukawa Power & Passion 150”
To prepare for entry into Phase 2 of Vision for 2025, we reaffirmed the reason for our existence and mission contained in the phrase “The Furukawa
Company Group will remain indispensable to society” from our Group philosophy, incorporated the perspectives of CSV into the marketing-based
management we promote as a Group in order to redefine it, and clarified our intent to improve the corporate value of the Group through business operation
conscious to CSR/ESG issues as part of our effort to establish a robust corporate foundation.
More than ever before, we intend to continue creating corporate value—providing infrastructure, products, technology, services, and more to help resolve social
issues—while simultaneously contributing to the creation of social value by developing social infrastructure and realizing a safe, eco-friendly, prosperous society.

1

CSR Report 2020

Report Scope

CONTENTS
3

Interview with President Miyakawa

CSR of the Furukawa Company Group7

CSR as It Relates to the Furukawa
Company Group’s Business

9

Effort for SGDs by Each Core Operating
Companies

13

Contributing Through Products andServices

15

CSR Management

Activity Reports
17

Governance andManagement

21

Customer Relations

23

Environmental Efforts

29

Employee Relations

33

Supplier Relations

35

Community Relations

36

Shareholder and Investor
Relations37

Corporate Information

Guidelines Referenced• “Sustainability Reporting Standards” by the Global Reporting
Initiative (GRI)• “Environmental Reporting Guidelines, 2018 Version” by the
Ministry of the Environment• “Environmental Accounting Guidelines, 2005 Version” by the
Ministry of the Environment• “JIS Z 26000: 2012 Guidance on Social Responsibility(ISO26000: 2010)” by the Japanese Standards Association

Company Names
Furukawa Co., Ltd.:The operating holding company of the divided core operatingcompanies
Furukawa Company Group:
33 consolidated subsidiaries and 5 equity method affiliates
Core operating companies:
Furukawa Industrial Machinery Systems Co., Ltd., Furukawa
Rock Drill Co., Ltd., Furukawa Unic Corporation, Furukawa
Metals & Resources Co., Ltd., Furukawa Denshi Co., Ltd.,
Furukawa Chemicals Co., Ltd.

Report Publication Date
November 2020 (Previous: November 2019, Next: Scheduled for
November 2021)
2

Interview with President Miyakawa

Executing marketing-based management that incorporates a
CSV approach with the aim of actualizing our philosophy tocontinue being a company that is indispensable to societythat began around January 2020 has impacted economies andcorporate foundation: improvement of corporate value throughsocial life in ways that remain immeasurable. Additionally, naturalbusiness operation geared towards resolving CSR/ESG issues.

disasters such as torrential rain and typhoons caused by climate

We will embed marketing into the core of our management,change continue to intensify, prompting our recognition of the

improving corporate value and achieving sustainable growth byvastly increased scale of the responsibilities our Group must fulfill,providing products and services recognized as valuable in changing

which include disaster risk reduction and other disaster control

markets, and resolving the issues faced by our customers, inmeasures as well as infrastructure development.

addition to providing infrastructure development, products,

In addition, the dizzying pace of change throughout the worldtechnology, services, and more to achieve sustainable development

is bringing many innovations from the IoT, AI, big data analysis, andgoals (SDGs) and resolve social issues such as making the nation

other developments in technology. The Group views these changes

of Japan more resilient and dealing with the decreasing working

as opportunities for business expansion. The Group has a wide

population. Through these efforts, we will continue creatingarray of businesses and specialized technologies and products, thecorporate value while simultaneously contributing to the creation ofability to combine technologies and products from different fields tosocial value—namely developing social infrastructure and realizing

create new things, and a pioneering spirit toward new business. Ina safe, eco-friendly, prosperous society—and the realization of aother words, it can be said that we have developed the capacity tosustainable society.

respond to changes in the world and grow continuously.

(Related information: P. 9-12 “Efforts for SDGs by EachCore Operating Companies”)

Revising Vision for 2025

Q: What was the intent behind this year’s revision to Vision
for 2025?

Despite the highly volatile circumstances we find ourselves in, we

President and Representative Director

Naohisa Miyakawa

will continue to provide products and services with recognizedvalue, and to discover and resolve the issues and problems ourcustomers are facing in an effort to grow sustainably and increase
our corporate value while deepening the bonds with our customers.
This perspective informed our partial revisions to Vision for 2025
as we enter Phase 2; specifically, we incorporated the preceptsof CSV* into the marketing-based management we promote as a

Introduction

business was a key industry that influenced Japan’s growth.

I would like to respectfully express my condolences to those who

supported Japan’s growth by instigating technological innovations

are currently ill or are experiencing difficulty due to pandemic, andhope that they recover as soon as possible. Additionally, allow me
to express my gratitude and respect to those in the medical fieldfrom overseas, and by building the Ashio Copper Mine into thenation’s largest in terms of output.
Copper mine development was a national policy priority,
but the manifestation of pollution problems forced us to the

who are committed to the treatment and prevention of infections.

brink of a shutdown. Our precursors faced these issues head-Social Role and Mission of
the Furukawa Company Grouptechnologies, and other technologies and methods, and worked

Q: Amid recent demand for adaptation to a sustainableeconomic society against a backdrop that includes
the increasing severity of social issues, companies are
re-examining their reason for existence and mission.
What is the Furukawa Company Group’s social role andmission?

At the time of the founding of Furukawa Co., Ltd. in 1875, Japanwas in the midst of industrial development, and the copper mining
3

through the introduction of rock drills and other mining machinery

Q: Phase 2 of the realization of Vision for 2025 started
during fiscal 2021. What is the positioning of MediumTerm Management Policy 2022?

The spread of the COVID-19 infection around the globe anduncertainty as to when the situation will be brought under control
substantially changed the management and business environments

on, and developed new pollution controls, by-product recycling
together with local communities and other stakeholders toward

Positioning of Medium-Term
Management Policy 2022
Create “Corporate value/Social value”

their families. I also wish to offer heartfelt concern for those who

Formulating Medium-Term
Management Policy 2022

Amidst these circumstances, the company has continuously

Vision for 2025

Targeting consolidated
annual operating income
regularly in excessof ¥15 billion(ideal image for 150th
anniversary of foundation)

Become a corporate group that leverages its
reputation for category leadership anduniqueness to deliver growth

resolutions of the problems.
Thus, I believe that our precursors’ corporate stance andteachings—that the very survival of our company rests on the
bedrock of earnestly tackling social issues and diligently fulfilling
our social responsibilities—are the irreplaceable foundation of theGroup’s CSR as a part of our DNA that will never change.
Various social issues have increased in both complexity andintensity in recent years, and threaten the foundation of the Group’sbusiness, which we have expanded around the globe. Amid suchcircumstances, the novel coronavirus (COVID-19) pandemic

Medium-Term Business Plan

have lost their lives due to the novel coronavirus (COVID-19), toGroup, and defined a new part of our effort to establish a robust* CSV: Creating shared value (CSV) is a management framework that enables
companies to simultaneously create social value and corporate value by tacklingsocial, environmental, and other issues.

Phase

Phase 1

Phase 2Phase 3Time period

FY2018–2020

FY2021–2023

FY2024–2026

Positioning

Building foundations
for renewed growth

Expedite growth and further
improve profitability

Complete realizationof Vision for 2025

Performanceindicators

Operatingincome¥8.5 billion range [¥8.6 billion*]

ROE

6%-7% range [5.8%*]

To be published once
Regularly in excess of ¥15 billion
the new Medium-Term
More than 10%
Business Plan is formulated*Bracketed figures are fiscal 2020 actual results (published in the summary of accounts)

4

Interview with President Miyakawa

assumed and anticipated during the formulation of Medium-Termfuture, considerations will be made to revise each company’s

Business Plan 2022, Phase 2 on the path toward achieving Vision

BCP—including Group BCP—to include measures to take against

promotionfor 2025. Therefore, we decided to postpone the publication

infectious diseases in addition to accidents and natural disasters.

administered to the major suppliers of each operating companyof Medium-Term Business Plan 2022, and instead formulated

The revision process will include cross-departmental collaborationthat began in fiscal 2017, analyzed the results, and conductedMedium-Term Management Policy 2022 to clarify matters suchand discussion.

individual interviews and follow-up based on the results. From now

as management strategies and priority issues to address during
Phase 2.

of the Code of Conduct for Officers and Employees and the Charter

questionnaires

andfollow-up

questionnaires

on, we will aim to further deepen partnerships with our suppliersand establish a PDCA cycle for follow-up.

Medium-Term Management Policy 2022 aims to improve theof Corporate Conduct revised last year. As I explained previously,

Regarding human resources—a key toward achieving Vision

value of the Furukawa brand on the path toward achieving Vision forthese documents were revised to account for changes in thefor 2025—we were generally able to promote intensive efforts

2025 through the promotion of marketing-based management thatbusiness and social environments as well as a global perspective

toward human resources development, work-life balance, andincorporates a CSV approach. Furthermore, we intend to improveand the approaches of the SDGs and CSV. We will strive to spread

diversity according to plans. However, we failed to reach our target

our on-site strengths and capacity for innovation and make efforts

these revised documents throughout the Group as well as to revise

for employing people with disabilities, and intend to continue toto achieve sustainable growth by strengthening and expanding ourcompliance manuals and improve the content of training.

intensify efforts toward that end. As a measure to prevent thehuman resource bases, actively promoting investments to increase

Efforts toward product safety included the promotion of the

spread of COVID-19 infection, head office employees were

corporate value, and establishing a robust corporate foundation.

visualization of on-site change points identified as major factors

instructed to work from home from March 27 to June 28, 2020.

We will also expedite growth and further improve profitability bybehind complaints in order to strengthen quality assurance

We will administer a questionnaire to these employees in order todevoting our full energies to solidifying the foundation for new

systems in each workplace, and the improvement of operationalverify the circumstances under which they worked and how eachgrowth established under Medium-Term Business Plan 2019.

efficiency through the transition to ICT in production anddepartment’s business functioned during that period. We also

In the Rock Drill Machinery segment, we will tackle the urgent,inspection operations. The Group’s products and technologies

plan to conduct an engagement survey to supplement the mental

priority issue of strengthening and rebuilding our overseas marketingare already being utilized in many areas of our lives, and help

health checks we already perform in an effort to provide sufficientcapabilities, and commit to efforts such as establishing a businessactualize convenient, prosperous life and safe, secure societies.

care for our employees’ physical and mental health. We intend tomodel that leverages lifecycle support. In the Industrial Machinery

We intend to further the discussion not only in terms of quality

use the results of these surveys in various reforms to realize work

segment, we will continue to innovate namely by making a major

but also in terms of the risk of major accidents attributable to theenvironments that are healthy and meaningful for a wide range ofshift in profit structure by aiming to become more than simply an

specifications of our products to increase awareness and impress

people. We will also launch efforts toward human due diligence,equipment manufacturer. In the Unic Machinery segment, we will

upon every employee the importance of contributing to society andwhich we have regarded as an issue for some time.

steadily strengthen the power of our products, sales, services, andthe environment through the Group’s work. We will also strive totechnology outside Japan.

further strengthen engineer training.

Specifically, we will continue efforts to sustainably expand theRegarding the environment, we promoted activities to reduce

Machinery business—positioned as a core business in Medium-environmental impact and preserve biodiversity based on the FourthTerm Business Plan 2019—to warrant its positioning as a growth

Medium-Term Reduction Targets (10-year period) formulated inbusiness and a target of intensive investment, in addition to

fiscal 2020. We also used the concept to connect improvements

intensifying efforts toward alliances and M&As to achieve dynamic

in our customers’ work efficiency and the mechanical efficiency

growth.

of our machine products to reduce CO2 emissions as the basis

Evaluating CSR Activities in Fiscal
2020/Plans for Fiscal 2021

Q: What is your evaluation of activities in fiscal 2020, and5

Regarding compliance, we prepared foreign-language versions

Regarding procurement, we completed a series of CSR

for establishing specific emissions targets for each product in linewith the Group development roadmap for key product families.
Through these efforts, we strive to improve the awareness of eachand every Group employee toward contributing to society, and aim
for product development that improves customer satisfaction while

what issues are you devoting energy to addressing?

simultaneously contributing to the global environment. Regarding

We are formulating our Ideal Image for CSR 2025 to accompany

we intend to move forward with discussions for considering

FURUKAWA Power & Passion 150, our Vision for 2025, theenvironmental impact reductions.

massive capital investment toward further emissions reductions,150th anniversary of our founding. We have also formulated andRegarding industrial safety and health, although we regret

promoted activities toward CSR Medium-Term Goals (fiscal 2018-

being unable to achieve Zero accidents, we took steps to improve2020) based on backcasting. The following are some of the main

the safety of our activities with the aim of eliminating unsafe

activities and outcomes of fiscal 2020, as well as plans for theconditions and behaviors. Unfortunately, attention to QCD* tends

future.

to overshadow efforts toward safety and work environments inFirst, regarding risk management, nearly all core operatingproduction plants. However, we believe in the need to strengthen

companies have finished formulating BCP, and we intend to

QCD + SE* in order to continue producing and selling reliable

continue promoting the formulation of BCP for affiliate companies.

products to our customers. We intend to continue to promote thePlans for fiscal 2020 included initial response and BCP drills,

visualization of issues in regularly conducted environmental andthe establishment of Group BCP Sections, and the hosting ofsafety audits, thereby promoting corporate activities that reduce

Business Risk Review Sectional Meetings; however, these plans

environmental and safety risks and strike a balance between safety

were postponed due to COVID-19 countermeasures. In theand the global environment.

In light of the above, in our view, although improvement isneeded, we were able to make steady progress in fiscal 2020, thelast year of Phase 1.
*QCD: Quality, Cost, Delivery.
*SE: Safety, Environment.

SDGs through our business. The reason for this desire is because
society and the environment come before all stakeholders weinteract with; the aim is to constantly understand situations fromother people’s perspectives, sensitively perceive the challenges
they face as well as individual issues and needs, and leverage ourcorporate and individual strengths to provide the maximum value.
This is exactly the type of “marketing-based management” theGroup should be putting into practice.
In addition, so that outside stakeholders appropriately assess
the corporate value of the Group, we must accurately convey

Achieving Vision for 2025

information to them about the social value we create. For example,

Q: What excites you about achieving Vision for 2025, andcourse of action, and social value created amid communication inwhat are some important points of Phase 2?

I believe that conveying our Group’s reason for existence, intended
sales and development situations will encourage people to turn to
Furukawa for consultation on issues, and inspire them to believe

As I explained previously, I feel that social issues will continue toin their company’s ability to contribute to society through theirgrow more serious and complex in the near future, and I believe

business and operations.

that the time will come to ask ourselves more critically what kind

While this is not an easy path to travel, I believe that unflagging

of social value we can create in the world. Also, the difficulty ofinnovation stems from each and every employee having

predicting the future makes it all the more important to promote

confidence and pride in their own work. Indeed, innovation is the

management grounded in unshakable principles. Those principles

most important keyword in and after Phase 2 for achieving Vision

are market-based management redefined to incorporate thefor 2025. In other words, innovation as we see it is not limited toprecepts of CSV, Vision for 2025, and Medium-Term Management

technical innovation in research and development departments,

Policy 2022. We also intend to steadily promote CSR activities inbut encompasses a wide range of innovative behavior originating

line with Medium-term CSR Goals (fiscal 2021-2023) formulated tofrom the everyday activities of all employees. It is also the source

achieve our Ideal Image for CSR 2025.

of the ability to establish and reform business models and achieve

Regarding contributing to achieving SDGs, we need to further
increase the awareness of each and every member of our Group.

reform and improvement to create corporate and social value in all
corporate activities.

Toward that end, this fiscal year, we intend to clarify and summarize

We will continue to honor the corporate stance that has

how our Group business and the activities of each department

become part of our Group’s DNA—keeping a close eye on changes

relate to SDGs. It is my hope that these relationships will further

in the world, earnestly tackling social issues, and diligently fulfillingunderstanding of SDGs and lead to the refinement of priority

our social responsibilities—and tirelessly seek new challenges tochallenges and proposal of business strategies to contribute tocontinue to be a company that is indispensable to society.
6CSR of the Furukawa Company GroupCSR as It Relates to the Furukawa Company Group’s Business
The Furukawa Company Group’s Management Philosophy is embodied in its CSR activities. Since commencing
operations in the copper mining business in 1875, we have worked constantly at achieving self-innovation byembracing a future-oriented mindset. At the same time, we have sought to create reliable, appealing products in order
to consistently address the needs of the times. In the process, we have developed multiple businesses and madesignificant contributions to the advancement of Japanese industry.
In order to persist as a company that plays an essential role in society going forward,
we will contribute to the development of a sustainable society that is in harmony
with the environment, while also improving our managerial transparency,
further strengthening our manufacturing capabilities for the future,and enhancing communication with our various stakeholders.

Medium-term CSR Goals(Fiscal 2021-2023)

Corporate
SocialResponsibility

Three-step approach to addressing social issues

Management
Philosophy

STEP

1

Contribute through business processes

STEP

2

Contribute through products and services

STEP

3

Contribute in partnership with stakeholders

Vision for 2025

Management
Plan

Medium-TermBusiness Plan 2022
(Fiscal 2021-2023)

Expedite growth andfurther improve
profitability

2030

2025

Development of a Sustainable Society[SDGs: Sustainable Development Goals]

Ideal Image for CSR 2025
The Furukawa Company Group will develop andestablish a risk management framework that
extends beyond crisis management.
All officers and employees will be keenly awareof compliance as it applies to international
community.
Promote environmental and safety activities(Reduce environmental impacts, protect
environment and ensure safety, protect
biodiversity, publish environmental and safety
activity outcomes, and continue working to ensure
there are no accidents or disasters at suspended
or abandoned mines)
We aim to improve brand strengths of Furukawa
products and achieve top rankings in productcategories.
Expand and Strengthen our human resourcebases
We will develop rewarding work environments
where it is possible to create new forms of value by
maximizing the abilities of each and every employee
We will pursue a QCD* approach based on
CSR-oriented procurement practices geared toachieving sustainable manufacturing and sales of
products that earn the trust of our customers.

■ Helping to address challenges
encountered worldwide
In September 2015, the United Nations General Assembly
adopted its Sustainable Development Goals (SDGs) andpresented an action plan for human and environmental
prosperity. The SDGs consist of 17 goals and 169 targets
lo ok ing towa rd 2030, suc h that he lp cla r if y pr ior it yglobal-scale issues and a worldwide vision related tosustainable development and are intended to encourage
global-scale initiatives to address those issues.
The Furukawa Group strives to help achieve the SDGs,
established by the international community, through its
business activities and ef for ts geared to fulfilling its
corporate social responsibilities.

Medium-term CSR Goals
Committee / Department
Risk Management Committee

Compliance Committee

Medium-term CSR Goals (Fiscal 2021–2023)●

Develop the Group-wide crisis management framework●

Develop the Group-wide risk management framework●Improve awareness of the importance of thorough compliance●Spread awareness of the Charter of Corporate Conduct and the Code of Conduct for Officers and Employees●Improve and expand guidelines and manuals●

Expend every effort toward timely, appropriate reporting of compliance violations●●●

Environment & Safety
Management Committee

●

●

●

 elease more effective publications that account for trends in ESG investment resulting from environmental andR
safety activities, requirements for SDGs, and more

Product Safety Committee(2) Improve awareness of quality assurance
1. Add to and improve training to raise minimum skill levels
2. Improve systems for sharing information between segments
3. Strengthen quality assurance management in overseas procurement and factories●

Improve safety(1) Revise and improve product safety evaluation systems

Human Resources & General
Affairs Department

Promote the sharing of information about the latest laws and regulations and understanding of environmental laws, theIndustrial Safety and Health Act, and other legislation as it pertains to operations in factories and other places of businessImplement robust management of forests owned and promote animal and plant species restoration activities asmeasures for biodiversity

Improve product quality(1) Strive to reduce and eliminate complaints about products
1. Strengthen change points control
2. Make efforts to improve quality at the stage of development and design
3. Eliminate repetitive complaints

Hold discussions and provide guidance for achieving the Fourth Medium-term Reduction Targets (CO2, water, waste) igorously perform 5S* activities to eliminate accidents and disasters and implement preventive measures thatR
are more tailored to work environments

Medium-term CSR Goals (Fiscal 2021–2023)●

 espond appropriately (completed) to matters to correct identified during environment and safety audits, andRcontribute to preventive measures*5S: Workplace Organization System: Sort, Set in order, Shine, Standardize, and Sustain

7

Committee / Department

Purchasing Department●

Develop human resources●

Promote health and productivity management●

Promote diversity●

Improve work environments●

Establish CSR procurement systems●

Strengthen supplier management systems (QCD + CSR)●

Strengthen internal CSR activities* QCD: Quality, cost, and delivery

8Special
FeatureEfforts for SDGs by Each Core Operating Companies
Contributing to the Achievement of SDGs through Marketing-Based Management that Incorporates CSV Perspectives

Furukawa Industrial Machinery Systems

Furukawa Unic

Aiming to respond to customers’ needs and resolve social issues

Making efforts to develop products that contribute to the resolution of social issues

The Company’s BusinessOur company’s business comprises three foundational segments:
pumps and other fluid machinery, crushers and other material
machinery, and contractor business centered on conveyanceequipment and steel structures. Our aim is to become more thansimply an equipment manufacturer; we want to become strategic
partners for our customers by developing into a manufacturer withthe engineering capacity to provide optimal proposals that accountfor total balance between many factors, including functionality,
cost, usage environment, and safety. By combining our products,
we propose equipment that is both efficient and safe for major
projects encompass all stages from the equipment designing
process to installation and operation.

Our Contributions
While we obviously contribute to the development of social infrastructure,
the equipment we provide is also environmentally friendly. As formeasures to counter the deterioration of social infrastructure, in thearea of road infrastructure, we are involved in bridge replacement andrepair. In the area of sewerage system infrastructure, we contribute towater environments by providing pump station equipment. Regarding
disaster countermeasures such as disaster risk reduction and otherdisaster control measures, in the area of tsunami countermeasures,
we have provided and operated crushers and belt conveyor equipment

for land-raising work. As formeasures to control floods
caused by climate change, we
provide equipment required toconstruct regulating reservoirs
and dams to control river levels
Furukawa Industrial Machinery Systems
Co., Ltd.
in urban areas. We provide lowPresident and Representative Director
noise, low-vibration machinery
Katsuhira Kawashita
and use foolproof construction
management technology at eachstage of work to both improve work efficiency and maintain surrounding
environments, thereby leading to a sense of safety and security.

Future Direction
Through efforts such as providing environmentally friendly, efficientmachinery for reducing energy consumption to meet requirements
to respond to natural disasters and accommodate the naturalenvironment in individual countries, and providing facilities andequipment for measures to counter the deterioration of infrastructure,disaster risk reduction and other disaster control measures, we provide
all-purpose facilities and equipment that both respond to customers’
needs for the projects they are planning, and resolve social issues. We
are also committed to proposing machinery that enables labor-savingin facility maintenance to respond to aging societies.

Furukawa Rock Drill
The Company’s Business

Our Contributions
In Japan, we contribute not only to infrastructure development projects
such as the construction of the Chuo Shinkansen (a linear Shinkansen),but also to underground resource development and countermeasuresagainst natural calamities such as reconstruction and restoration
work in Kumamoto and the Tohoku region. In the last several years inJapan, demand for machinery automation has increased in response
to social issues such as shortages of skilled workers as a result of theaging of society. On the other hand, in developing countries, there9

are flourishing in places where
automation and labor-saving
was previously impossible.
Developments such as theactive use of ocean cranes infishing industry and active use
Furukawa Unic Corporationof UNIC PAL in forestry industry
President and Representative Director
for respective saving of labor,
Minoru Nakatogawa
are addressing aging and labor
shortages and contributing to
the resolution of other social issues. Our cranes are also in active
in developing countries and elsewhere outside Japan, where they
are used for infrastructure construction aimed at increasing social
capital.

Future Direction
Our Contributions
UNIC cranes make contributions throughout society as machinesthat enable streamlining and labor-saving in logistics; we havealways produced products that enable users to work with asense of safety and security. Furthermore, our pursuit of low noiselevels and fuel efficiency underlies our commitment to the naturalenvironment by enabling users to be considerate of surrounding
environments, contributing to the reduction of CO2, and more.
Mini-crawler cranes allow users to work in narrow sites, andAs the electrification of vehicles progresses into the future, wewill have to consider the electrification of cranes, as well. We
have already achieved electrification of mini-crawler cranes; wedeveloped a battery-powered model in 2016. The electrificationof UNIC cranes will proceed alongside that of trucks, and we willcontinue to engage in manufacturing that meets the needs of ourusers by improving fuel efficiency as an ongoing environmental
measure and providing safe, secure, user-friendly products to
respond to changes on the users’ end.

Furukawa Metals & Resources

Contributing to infrastructure development and measures against deterioration

Our company provides a wide array of machinery including
machinery for road and railway tunneling and mining; blast hole
drills used to extract limestone, the raw materials of concrete, andthe crushed stone needed for urban development; and hydraulicbreakers, hydraulic crushers, and other machinery used for
purposes such as building demolition.
Our products are used in many environments and to various
ends, and we are committed to improving our products to respondto customer needs in terms of safety and labor-saving as well as
production cost-saving. We are promoting lifecycle support for our
products as a business because replacement of consumable parts,
maintenance, and inspection are deeply related to work efficiency.

The Company’s BusinessOur company provides our customers with truck-mounted UNIC
cranes as well as mini-crawler cranes, UNIC carriers, and more.
Most of our UNIC crane are sold in the domestic market, andour efforts to develop safer products in response to the partial
amendment of structural standards for mobile cranes in 2019 haveearned high praise from customers. Overseas customers accountfor roughly 20% of sales by segment. We sell UNIC truck-mounted
cranes mainly in Asia and the Middle East, and demand for minicrawler cranes is high in Europe and the Americas.
In an effort to optimize costs while improving quality andproductivity, we deploy a three-factory production systemcomprising Sakura Works, the mother factory in Chiba Prefecture,and one factory each in Thailand and China that operate under theguidance of the mother factory.

is a needs to address safety andhealth due to problems with theworking environment. To meetsuch diverse needs, we haveprovided support for improving
work efficiency and safety byintroducing
drill
navigation
systems, providing ICT-equipped
operational support systems, anddeveloping machinery to perform
supplementary work.

Contributing to various industries by ensuring a stable supply of products that
underpin industry
The Company’s Business

Furukawa Rock Drill Co., Ltd.
President and Representative Director

Hiroyuki Abe

Future Direction
In an effort to further improve work efficiency and safety, rather
than simply selling the product, it is important to have customers
appreciate the value of the product throughout its life cycle including
selection of optimal machinery, instruction of proper operation andmaintenance, repair and refurbishment in case of failure, and disposal
and replacement at the end of the product life. We will evolve the life
cycle support that we have promoted so far, strive to ensure that all
customers can work safely with a sense of security, and contributeto infrastructure development in developing countries as well as
measures against aging infrastructure in developed countries.

Our company’s business is driven by sales of electrolytic copperand sulfuric acid. We have electrolytic copper produced by our joint
smelter, and then market it to electrical equipment manufacturers,
electric wire manufacturers, and others who underpin industry.
Additionally, in order to leverage the experience and knowledge
we have accumulated to date, we launched a Technical Department
in 2017, and have begun our search for new business as we
reduce the cost of neutralizers needed for acid mine drainage
treatment, including a process employing bacteria to remove ironand to recover heavy metals from the water treatment.
As for business in the international market, we are actively
involved in underground resources development, including joint
investments in copper mines.

near future as electric vehicles
gain popularity. Our company
contributes
toeconomicdevelopment by providing astable supply of electrolytic
copper. Sulfuric acid also has
Furukawa Metals & Resources Co., Ltd.
a broad range of applications
President & Representative Directorin paper manufacturing as well
Masanori Saito
as fertilizers, pesticides, foodadditives, water sterilization,
pharmaceuticals, automobiles, telecommunications, and more.
Our company contributes to the development of various industries
by providing a stable supply of sulfuric acid.

Future Direction
Our Contributions
Copper is widely used in many industries; it is an essential material forthe automotive industry as well as in construction for infrastructuredevelopment and establishing information and communication
networks. Demand for copper is expected to increase in the

We must closely examine the profitability and future potential of
the copper smelting business we are currently outsourcing, andmust also develop new business. We intend to leverage theknowledge we have accumulated to date to innovate in order tomake contributions in new businesses.

10Special
FeatureEfforts for SDGs by Each Core Operating Companies
Contributing to the Achievement of SDGs through Marketing-Based Management that Incorporates CSV Perspectives

Furukawa Denshi

Main Products and Services Contributing to the Resolution of Issues

Contributing to the realization of prosperous lifestyles by creating higher-valueadded products and ensuring a stable supply
The Company’s BusinessOur company provides our customers with sulfuric acid, cuprous
oxide, polyferric sulfate solutions, cupric oxide, sulfuric acid bands,
and more. Sulfuric acid has a broad range of applications in paper
manufacturing as well as fertilizers, pesticides, food additives,automotive, telecommunications, and more. Cuprous oxide isused in ship hull coating, polyferric sulfate solutions are used inwater treatment, cupric oxide is the raw copper material for plating,and sulfuric acid bands are used for inorganic water treatment ofdrinking water, industrial wastewater, sewage, and more. We are
stepping up the manufacturing of high-value-added products
among our existing products, and providing our customers with
newly developed products that meet their needs.

Our Contributions
Regarding existing products, we provide our customers with sulfuric
acid bands for inorganic water treatment, thereby contributing to
the supply of high-quality drinking water. We also provide ferrous
sulfate for food additives and supplements. Our high-quality sulfuric
acid, a high-value-added product, is used in electronic materials
and the like for its capacity to reduce impurities.
Our metallic copper powder, a newly developed product, is
expected to function as a raw material in components needed11

for control in automated driving
and electric vehicles, as wellas in telecommunications as amaterial for 5G expansion.

Future Direction
Our company’s basic strategy
Furukawa Chemicals Co., Ltd.
President and Representative Director
is to expand business for
Kazuyoshi Iwama
existing products, and launchand develop business for newly
developed products. To realize this strategy, we need to expand
sales for high-value-added products among our existing products.
As for sulfuric acid, we believe it is possible to respond to ourcustomers’ new needs and resolve their issues in areas including
food additives and electronic materials by improving added value
and stepping up manufacturing of products such as high-quality
sulfuric acid, one of our company’s strengths. As for newly developed
products, customer needs differ in features and functions. We intend
to make contributions in automated driving, telecommunications
systems, and other areas by establishing systems for quality, mass
production, and sales for metallic copper powder and other newly
developed products and providing a stable supply of high-quality
products that respond to diverse customer requirements.

Belt conveyors

Transporting high volumes ofearth and sand, ores, etc.

Reducing environmental impact by efficiently
transporting high volumes of earth and sand,ores, etc.

Steel bridges
and steelstructures

Pedestrian bridges,
expressways, etc.

Providing people with the means for ensuring
safe, secure transport

Tunnel drill
jumbosDrilling holes for blasting in
the development of road andrailway tunnels, etc.

Hydraulic crawler
drillsDrilling holes for blastingat quarries and limestone
mines, etc.

Contributing to the supply of the raw materials
that support infrastructure development

Hydrauliccrushers

Tearing down concrete
structures and cutting steel
frames, etc.

Contributing to the demolition of aging
facilities to promote safe and prosperous
urban development.

UNIC cranes

Truck-mounted cranes

Providing safe working environments forconstruction sites and workplaces in logistics

Mini-crawler
cranesCranes for use inside high-risebuildings and narrow sites

Contributing to ensuring the safety ofdangerous workplaces and mitigating hardlabor environments

Ocean cranes

Cranes installed on fishingboats, etc.

Contributing to the establishment of working
environments that enable fishing industry
operations to continue despite labor shortages

Electrolytic
copperThis substance is used in thewires, copper pipes, and othercomponents of household
appliances, communication
devices, and automobiles.

Contributing to various areas of industry byproviding a stable supply of the materials that
underpin industry

High-purity
metallic arsenic

Raw materials for mobile
equipment and lasers

Contributing to infrastructure establishment
and promoting industrialization and innovation
by supplying materials for electronicequipment and automobiles

Coils

Filter coils are used to control
noise from electric control
units and power sources.

Contributing to reducing environmental
burdens and promoting innovation by
providing materials for fuel-efficient vehicles
and electric vehicles

Opticalcomponents(lenses)

Infrared lenses used in noncontact thermometers, etc.

Contributing to medical care development
and Universal Health Coverage* by supplying
optical products for thermometers, etc.

Sulfuric acidFoundational raw material
for various fields of chemicalengineering

Contributing to economic growth by
supplying sulfuric acid in a wide range ofareas including agriculture, food products,
automobiles, and telecommunications

Sulfuric acidbands

Inorganic water treatmentof drinking water, industrial
wastewater, sewage, etc.

Contributing to improving water environments
by supplying inorganic water treatment agents
to facilities that treat drinking water, industrial
wastewater, sewage, etc.

Furukawa Industrial Machinery
Systems Co., Ltd.

Wastewater treatment
equipment, water treatment
plant equipment, etc.

Furukawa Rock Drill Co., Ltd.

Furukawa Chemicals

Pumpingequipment at
wastewater
treatment facilities

Contributing to improving sanitation and marine
environments and protecting ecosystems byproviding wastewater treatment equipment andwater treatment plant equipment

Furukawa Metals& Resources
Co., Ltd.

Our Contributions
We provide our materials to the automotive industry as well as thetelecommunications and electronic equipment industries. The highpurity metallic arsenic and aluminum nitride used to manufacture IC,
LSI, and other electronics, semiconductor devices, transformers,
sensors, and more are essential for establishing infrastructure andFuture Direction
We intend to continue contributing to the development oftelecommunications infrastructure and automotive and medical
equipment by providing a stable supply of our main products—
high-purity metallic arsenic, crystalline products, and coils—andalso using our strategic products—namely developing highperformance aluminum nitride products and improving DOE andother optical products for laser machining—to develop productsthat help customers resolve their issues, thereby contributing to
the creation of a convenient, comfortable society by promoting
automation, labor-saving, health, and more.

Contributions

Furukawa Denshi Co., Ltd.

Our company provides our customers with materials, namely highpurity metallic arsenic, crystalline products, and coils. We have alarge share of the market for high-purity metallic arsenic, which ismainly used to manufacture the compound semiconductors used intelecommunications equipment, high-performance computers, and thelike. As for crystalline products, we provide oxide crystals and the like foruse in medical care; for optical products, we provide infrared lenses andother components of non-contact thermometers. We also provide coils
for noise-controlling filters in automobiles and for various equipment.
Several products are strategic to our company’s business, andour efforts—expanding aluminum nitride business by leveraging highvalue-added firing technology and developing high-thermal conductivity,
high-strength aluminum nitride; expanding sales channels for diffractive
optical element (DOE) products that leverage our micromachining
technology; and developing hybrid coil samples that leverage our highdegree of design freedom—help us respond to diverse customer needs.

promoting innovation. The coils
used in PHV, EV, and fuel cellvehicles and the like contributeto environmental measures,
resource-saving through lower
fuel consumption, and more.
Furukawa Denshi Co., Ltd.
Additionally, our crystal oxides
President and Representative Director
are used in X-ray and CT
Hitoshi Iida
scanning equipment in the
medical industry, and contributeto labor saving in logistics through their use in large cargo scanners
and other necessary equipment at airports and elsewhere.

Products

Furukawa Chemicals Co., Ltd.

The Company’s Business

Applications

Furukawa Unic Corporation

Contributing to the creation of a more convenient, comfortable society throughautomation, labor-saving, health promotion, and more

SDGs
Top Contribution

Other Relevant Targets

Contributing to infrastructure development indeveloping countries
Contributing to safer, more secure working
environments through automation

Raw material for color grading
Contributing to universal health coverage by
and stabilizing agents, nutritional
Ferrous sulfate
fortification agents, agents for
supplying the raw materials for food additives
processed food production,and supplements
oxygen absorbers, etc.
* Universal Health Coverage: Coverage that enables everyone to receive services relating to proper health promotion, prevention, treatment, and recovery of functions at affordable prices.

12

CSR of the Furukawa Company Group

Contributing through Products and Services
A closer look at everyday life reveals the Furukawa Group’s products and technologies
in action in readily recognizable places. The Group’s products and technologies touch
every aspect of our lives, making them convenient and prosperous, and protecting the

UNIC cranes

safety and security of society.

These truck-mounted cranes are used on
construction sites and the like.

Electrolytic copperThis substance is used in the wires, copper pipes,
and other components of household appliances,
communication devices, and automobiles.

Electrostatic precipitators
This equipment prevents air pollution fromplants and other facilities.

P umping equipment at wastewater
treatment facilities

We have a wealth of experience with this equipment
at wastewater treatment plants and water treatment
plants throughout Japan.

Mini crawler cranes

Crushers

Outside Japan, these cranes are used on
construction sites for skyscrapers andthe like.

These machines crush rocks into smaller
pieces at quarry.

Hydraulic breakers

Belt conveyors

These machines are used to break rocks
and crush concrete.

This equipment transports massive
amounts of earth and sand, ore, coal, andother raw materials.

Enclosed suspended conveyors

Tunnel drill jumbos

These conveyors are used to close off andvertically transport materials.

These machines are used for the Linear
Chuo Shinkansen and other construction
projects.

Hydraulic crushers

Ocean cranes

These machines are used to tear down
concrete and structural steelwork inbuilding demolition and the like.

13

Hydraulic crawler drills
These machines drill holes for blasting atstone-crushing plants and limestone mines.

These machines are used in oyster farming
and unloading catches from vessels.

High-purity arsenic

Cuprous oxide

Bridges and steel structures

Coils

UNIC carriersThis high-purity metal is used as a raw
material for mobile equipment and lasers.

This eco-friendly substance is used to coat
the undersides of marine vessels.

We construct pedestrian bridges,
motorways, and more.

Filter coils are used to control noise fromelectric control units and power sources.

Trucks that carry new cars and damaged
cars.

14

CSR of the Furukawa Company GroupCSR Management
The Furukawa Company Group promotes corporate social responsibility (CSR), while reinforcing its governanceframework and compliance practices, with respect to its business activities such that have involved full-scale

Identifying Priority Issues

Priority issues regarding CSR

Page
P17

manufacturing and structural development carried out thus far, as well as various other activities particularly

The Group identifies important issues and reinforces its CSR

Developing a robust corporate governance framework

involving environmental protection, social contribution, and human resource development.

activities to ensure that its business activities contribute to society

Enhancing complianceP20

in the broader sense.

Providing products and services that engender customer
satisfaction

P21

related issues from the perspectives of both stakeholders andPromoting environmental conservation initiatives

P23

At the Furukawa Company Group, we actively engage in CSR initiatives, particularly through efforts that have involved establishing the CSR

the Group, then analyzed and evaluated the importance of those

Promotion Meeting at Furukawa Co., Ltd. in order to vigorously promote such endeavors, clarifying our responsibilities to stakeholders, andissues and finalized the Group’s CSR priority issues.

Creating pleasant workplace environments for employeeswith fair performance evaluations and incentives

P29

Building fair and just business relationships and reciprocal
trust with suppliers

P33

Promoting corporate social responsibility

P35

Communicating with shareholders and other investors

P36

To identify CSR priority issues, we selected important CSR-

Framework for Promoting CSR

The pages of the Activity Report detailing our CSR activities

identifying priority issues that need to be addressed.
Sessions of the CSR Promotion Meeting are held by Furukawa’s CSR Promotion Department, acting as the secretariat, and chaired by
Furukawa’s President and Representative Director. The meetings primarily act as a forum for discussions on various issues related to CSR,

provide information on priority issues regarding the Furukawa
Company Group’s CSR.

particularly with respect to formulating fundamental policies, promotion frameworks and action plans, verifying and evaluating the status ofinitiatives, and planning priority measures.
The CSR Promotion Meeting’s organizational structure consists of four committees (Risk Management Committee, Compliance Committee,
Environmental & Safety Management Committee, and Product Safety Committee) and two departments (Human Resources & General Affairs
Department and Purchasing Department). It takes a PDCA cycle approach to planning, implementation, evaluation and improvement, in

Steps to identifying
priority issues

Extract issues

Evaluate importance tostakeholders and the Group

Analyze theimportance of issues

Decide and approvepriority issues

coordination with respective Group companies and respective Company departments, which take on the function of executing CSR initiatives.

Risk Management
Committee
Compliance Committee

Human Resources &General Affairs Department

Environmental & Safety
Purchasing Department
Management Committee

CSR Promotion Department(Secretariat)

Interaction

Product Safety
Committee

Guidance /instruction

Reporting

Implementation body
Reports at each PDCA stage

Reporting

Fiscal 2021 Targets for Respective Committees and Relevant Departments
Committee / Department

Group companies / departments

Guidance / instruction

CSR Promotion Meeting

President and Representative Director

CSR Promotion System

Plan

Formulate the planDo

Execute the plan

Risk
Management
Committee

Action Take countermeasures
as necessary❶ Expand compliance training

Examine countermeasures for crises other than

Operate and promote effective❶ environmental and safety management
systems for each Group company

to build relationships of trust and accordingly maximize our corporate value by engaging in appropriate communications that involve clearly
conveying our responsibilities to each group of stakeholders.
Stakeholders

Responsibilities

Stakeholders

Responsibilities

Customers

We shall provide customers with safe, high-quality products andservices in order to increase satisfaction levels.

Employees

We shall create safe, healthy, and motivating workplaces inwhich our diversified human resources can excel while adopting
appropriate evaluation standards and fair incentives.

We shall build and maintain mutually beneficial relationships
conducive to harmonious coexistence through stableprocurement activities based on the principles of fairness andeconomic rationality.

Local
communities

We shall build and maintain favorable relationships of trust by
pursuing social contribution activities aimed at harmonious
coexistence with local communities.

Globalenvironment

We shall protect biodiversity by developing environmentallyfriendly technologies and products while minimizing theenvironmental impact of our activities through savings of energy
and resources and reduction of waste.

Further information on CSR management

15❸

Strengthen quality assurance management forcomponents procured overseas❹

Engage in initiatives involving quality assurance
frameworks❶ Develop human resources

Revise systems for sharing information about

follows: customers, suppliers, shareholders and other investors, employees, local communities, and the global environment. Moreover, we aim

We shall work to maximize corporate value throughcommunications focusing on timely and appropriate information
disclosure and IR activities.

❷ Improve DR/SR in the development and design stages
Product Safety
Committee❷ Create and revise compliance manuals and guidelines❸ complianceIn the course of strengthening our CSR activities and implementing our Management Philosophy, we have identified our stakeholders as

Shareholders
and investors

occurring

Revise and improve Group BCP and the BCP of core

❸ earthquakes

Compliance
Committee❶ educational activities for preventing defects from❷ operating companies

Check Check the outcome

Relationships with Stakeholders

Business
partners

Use the results of change point controls to enhance❶ Improve response capabilities in event of a crisis

Environment& Safety
Management
Committee

Activities
Promote the continuous improvement of❷ environmental performance
involvingenvironmental
conservation,
health, and ❸ Promote biodiversity protection activities
safety.

❷ Promote healthy and productivity management
Human
Resources &General Affairs
Department ❸ Promote diversity❹ Improve work environments❶

Enhance preventive measures for❹ eliminating accidents and disasters❷ Enhance management of major suppliers (QCD + CSR)

Improve on-site strengths by imparting❶ knowledge and skills
Monitorsuspended or
abandonedmines

Establish a PDCA cycle for the process from CSR
surveys to follow-up for major suppliers

Purchasing
Department

Maintain mine wastewater treatment❸ Foster partnerships with suppliers

Service final disposal sites and❹❷ facilities❸ underground mines

Continue Group-wide CSR-oriented procurement
activities

https://www.furukawakk.co.jp/pdf/CSR/e/csr_01.pdf
16

Governance and Management●Relevant
SDGs

グループガバナンス体制の強化

コンプライアンスの強化

Corporate Governance

お客さまとの関わり

環境への取り組み

Basic Approach

Executive Officer System

The Furukawa Company Group maintains fundamental policies
regarding corporate governance with respect to heightening
managerial transparency, building an effective managerial
framework through ongoing efforts to transform its corporate
structure, increasing its corporate value by generating consistentprofits, and contributing to its shareholders and stakeholders.

Executive Officers perform their tasks according to business plans
determined by the Board of Directors, and report the status of
従業員との関わりbusiness execution as appropriate to the Board of Directors and theManagement Committee. The Company has 16 Executive Officers asof June 26, 2020, including four concurrently serving as Directors.
取引先との関わりManagement Council and Management Committee
The Management Council sets the Group’s fundamental management
株主・投資家との関わり
policies and strategies, and makes decisions on important matters.
Meanwhile, the Management Committee meets monthly to report on thebusiness execution of the Company and its core operating companies,
and accordingly reviews such matters and provides direction 地域社会との関わり
in thatregard. Key managerial issues addressed by the Management Council
are referred to the Board of Directors for discussion and decisions.

Corporate Governance System
The Furukawa Company Group’s operating holding company
Furukawa Co., Ltd. has established the Board of Directors andthe Audit & Supervisory Board to supervise and audit businessexecution. The Company also employs an executive officer
system which facilitates quicker decision making and defined
responsibilities in terms of keeping management supervisory
functions separate from executive functions.

Audit & Supervisory Board and Its Members
Audit & Supervisory Board Members attend important meetings
including those of the Board of Directors, the Management Council,
and the Management Committee, pursuant to audit policy formulatedby the Audit & Supervisory Board. They furthermore receive business
reports from Directors and other managers, monitor business sites andsubsidiaries, and audit business execution by Directors. As of June
26, 2020, the Audit & Supervisory Board consists of four members,
including two Outside Members, and meets as appropriate.

Directors and Board of Directors
The Board of Directors holds regular meetings once a month, andextraordinary meetings as necessary, to supervise the Group’s
overall business execution. The Board consists of nine members
as of June 26, 2020, including three Outside Directors.

Outside Directors and Outside Audit & Supervisory Board Members
With the aims of ensuring managerial objectivity and transparency,
as well as appropriate decision-making, the Company appoints
Outside Directors and Outside Audit & Supervisory Board Members
who provide advice and perform verification from objective
viewpoints, drawing on their expertise and experience. As of June
26, 2020, the Company has three Outside Directors and two
Outside Audit & Supervisory Board Members, four of whom are
Independent Officers as stipulated by the Tokyo Stock Exchange.

Nomination and Remuneration Committee
The Company has the Nomination and Remuneration Committee
whose membership mainly consists of Independent Outside Directors.
The committee serves as an advisory body to the Board of Directors
and accordingly deliberates on matters relating to personnel affairs andremuneration of Directors and Audit & Supervisory Board Members.

Evaluating the Effectiveness of the Board of Directors
To analyze and evaluate the effectiveness of the Board of Directors,
the Company conducts questionnaire-based surveys of Directors
and Audit & Supervisory Board Members, and exchanges opinionswith Outside Officers. The results of these activities are reported to
the Board of Directors for discussion. Note that the questionnaire-based survey for fiscal 2020 was conducted through a third-party
organization in pursuit of greater objectivity.
The matters identified as issues to address for improvement infiscal 2020 have largely been addressed, and the Board of Directors
received relatively high marks for matters related to structure andmanagement. In fiscal 2021, the Board of Directors will strive to further
improve their effectiveness through five initiatives: (1) Promoting thedigitization of documents; (2) Improving explanations and descriptions
relating to proposals; (3) Adding supplementary explanations and thelike relating to Management Council meeting agendas to reported
matters; (4) Expanding the provision of information about Group
companies to Outside Directors and Outside Audit & Supervisory
Board Members; and (5) Exchanging opinions about IR activities anddetailed reports on the status of investor dialogue.

Internal Control System
The Group’s Basic Policy on Establishing an Internal Control
System encompasses corporate governance, risk management,compliance, and internal audits. Under the policy, internal controls
are to be implemented with an emphasis on promoting CSR, in
addition to ensuring efficient and appropriate business execution.
Moreover, the Group continually reassesses its internal control
systems and otherwise strives to build effective and efficient systems
in order to ensure the appropriateness of operations.

Message from an Outside Independent Director● Corporate Governance Structure

Shareholders’ Meeting
Election and dismissal

Election and dismissal
AuditsBoard of Directors
9 Directors(including 3 Outside Directors)

Consultation

Reporting

Supervise

Nomination &Remuneration Committee

Audit & Supervisory Board
4 Audit & Supervisory Board Members(including 2 Outside Audit & Supervisory Board Members)

Reports

Reports

AuditsElection and dismissal

Collaboration

Collaboration

Accounting Auditor

Collaboration<Business execution>
Representative Director

Internal Audit Department

Reports

Accounting Dept., others

Management Council
Management
Committee

CSR Promotion Meeting<Internal Control Division>

16 Executive Officers

AuditsAll Divisions and Group Companies

Further information on corporate governancehttps://www.furukawakk.co.jp/pdf/CSR/e/csr_08.pdf
17

Audits

I assumed office as an outside independent director of the Company in June 2019. I believe that the main responsibility of outside
independent directors is to ensure that management decisions are appropriate and are made objectively and transparently. At
meetings of the Board of Directors, we discuss a wide range of matters and engage in repeated debate on particularly important
issues. My conclusion is that the Company is being managed appropriately and carefully.
Fiscal 2020 was the final year of Phase 1 of our Vision for 2025. While our results
differed according to business segment, we reached our target for operating income,which I applaud. In fiscal 2021, as we enter Phase 2, there are concerns that the COVID-19
pandemic will cause drastic changes in the business environment. Accordingly, fiscal 2021
will be a year that will determine how effectively we overcome the crisis, expedite growth,and further improve profitability. To this end, top managers are under increasing pressure
to practice leadership by using their own initiatives to drive the Company forward. In the
coming era, we will need to address ESG and the SDGs, which are crucial matters from theperspective of sustainability. In addition to being able to respond quickly to emergencies,
the Board of Directors faces other big challenges, such as the need to address major
issues and develop successors who can overcome difficult situations.
Going forward, I will continue fulfilling my responsibilities as an outside independent
director so that the Company can unite as one to demonstrate greater responsivenessand overcome its current challenges.
Yoichi Mukae
Outside Independent Director

Further information on Furukawa Company Group audit system

https://www.furukawakk.co.jp/pdf/CSR/e/csr_19.pdf
18

Risk Management
Ideal image for2025

Compliance●Relevant
SDGs

The Furukawa Company Group will develop and establish a risk
management framework that extends beyond crisis management.

Ideal image for2025

Plan & Check

All officers and employees will be keenly aware of compliance as it
applies to the international community.

Plan & Check

Fiscal 2020 targets and assessments
Improve response capabilities in the event of a crisis.
Continue to revise BCP
Examine countermeasures for crises other than earthquakes

Fiscal 2021 targets

Achievement★★
★
★

Fiscal 2020 targets and assessments

Improve response capabilities in event of a crisis

Upgrade and expand compliance training

Revise and improve Group BCP and the BCP of core operatingcompaniesP repare English, Chinese and Thai language versions of theCharter of Corporate Conduct and the Code of Conduct for
Officers and Employees
Revise the compliance manualIdentify and examine countermeasures for risks other than earthquakes★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved

Fiscal 2021 targets

Achievement★★★

Upgrade and expand compliance training★★★

Create and revise compliance manuals and guidelines★

Revise systems for sharing information on compliance★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved

Do

Do

Framework for Promoting Risk Management

Implementing Business Continuity Management (BCM)

Promoting ComplianceInternal Reporting System

The Group’s business activities could potentially be badly impacted byvarious risks related to such factors as accidents, natural disasters,
and epidemic diseases. To protect human life and property andminimize damage and loss when such risks materialize, the Group,
spearheaded by its Risk Management Committee, is working toestablish and strengthen its risk management system.

Nearly all core operating companies have finished formulating BCP.
From now on, we will devote energy to implementing BCM.

In addition to complying with laws and regulations, the Group
believes it has a corporate obligation to take serious and responsible
action in terms of social and ethical aspects.
To fulfill this obligation, we have established the Compliance
Committee, which discusses important matters regarding
compliance. The Committee strives to share information on Groupwide compliance by reporting matters it has discussed to the CSR
Promotion Meeting as appropriate.

The Group has adopted an internal reporting system to facilitate
early detection and correction of compliance violations.
This has involved developing a framework that enables anextensive range of reporting and inquires by establishing points ofcontact for reporting and consultation requests inside and outside(law office) the Group. We also stringently safeguard confidential
and personal information regarding whistleblowers.
The Compliance Committee conducts investigations uponreceiving notification or consultation, and subsequently takes
necessary action to address such matters.
We also facilitate awareness of the internal reporting system
by posting such content to our in-house portal site and distributing
brochures to Group officers and employees.

● Risk Management System

CSR Promotion Meeting
Guidance/instruction

Furukawa Co., Ltd.

Reporting

We have finished formulating initial response manuals, and have now
turned our attention to implementing BCP.

CSR Promotion
Department(secretariat)

We are identifying the potential risk of earthquakes, floods, landslides
and the like at key locations and moving ahead with the formulation of
BCP with regard to risks that could substantially impact our business.

Earthquakes

◎

Oyama
Tochigi
Works
○

○

◎

◎

Floods

△

○

○

×

○

×

Landslides

×

△

×

×

×

×

Tsunami

×

×

×

×

◎

×

Typhoons

○

○

○

○

○

○

Head office

Risk Management Committee

Human Resources & General
Affairs Department (secretariat)

Business Risk Review
Sectional Meeting*

Furukawa Co., Ltd. Each department
Core operatingcompanies

Initial Response Manuals, and Implementing BCP

Group-wide Identification of Potential Risks

President & Representative Director

Furukawa Industrial Machinery
Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Unic Corporation

Furukawa Metals & Resources
Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

* Group companies represented in the Business Risk Review Sectional Meetingare the same as those represented in the Risk Management Committee.

Implementing Business Continuity Planning (BCP)
Developing Preventive Measures for BCP
To prepare for emergency situations in which normal means ofcommunication are not available, we are establishing transceivers at
key locations and reviewing the content and management methods ofemergency supplies including food and beverages.

Conducting Safety confirmation drills and Disaster reporting drills
We regularly conduct both safety conformation drills enlisting oursafety confirmation systems and disaster reporting drills with theuse of transceivers in order to ensure that we are able to promptly
confirm employee safety and the status of damaged sites should
an emergency occur.

19●Relevant
SDGs

Takasaki
YoshiiWorks○

Sakura
Works

Osaka
Works

Iwaki
Works

Degree of potential risk: ◎High ○Medium △Low ×Significantly low

Action[Comment from the Responsible Committee] Overview of Fiscal 2020
Plans for fiscal 2020 included initial response and BCP drills, theestablishment of Group BCP Sections,and the hosting of Business Risk Review
Sectional Meetings; although nearly all
core operating companies have finishedformulating BCP, we were forced to postpone
the Sectional Meetings due to COVID-19
countermeasures. We intend to implement
the uncompleted items as soon as possible,
and are taking steps to improve our capacity
Atsushi Takano
to respond to crises through such efforts as
Risk Management Committee
Chairperson, Senior Executive
revising Group BCP throughout the Group
Officer, General Manager,
and examining countermeasures for crises
Human Resources & General
other than earthquakes.
Affairs Department

Compliance Education
We strive to instill a corporate culture that emphasizes compliancethrough efforts that include issuing our “Compliance News” sourceof information on compliance to all Group officers and employees,
and having top management occasionally give talks on theimportance and priority we place on compliance.
In fiscal 2020, we held compliance training sessions as part ofour employment hierarchy-specific training for newly hired, midlevel
employees, and newly assigned managers. We also continue
to provide training on specific topics such as export control andJapan’s Act against Delay in Payment of Subcontract Proceeds,
Etc. to Subcontractors (the Subcontract Act).
● Training Implemented in Fiscal 2020
Training

Number ofparticipants(number of sessions)

Compliance training

172 (11)

Training on the Subcontract Act

63 (1)

Training on basic transaction agreements

63 (1)

Training on the Act on Promoting Quality Assurance in Public Works

65 (1)

Training on security export control

65 (1)

Training on amendments to the Japanese Civil Code118 (5)

Action[Comment from the Responsible Committee] Overview of Fiscal 2020
In fiscal 2020, foreign-language versions of the Code of Conduct
for Officers and Employees and the Charter of Corporate Conduct,both of which were newly published in April, were prepared in
English, Chinese, and Thai. Additionally, training was improved toinclude such new content as responding to amendments to theJapanese Civil Code. Plans for fiscal 2021 call for the preparation
and revision of manuals and guidelines
relating to priority items for achieving
compliance. We will also revise systems
to enable officers and employees toshare information about compliancemore effectively. We will continue topromote initiatives underpinned by ourgoal of equipping every one of our officers
Takeshi Miyajima
and employees with a keen awarenessCompliance Committee
Chairperson, Senior Executive
regarding compliance as it applies to the
Officer, General Manager, Legalinternational community.
Department

Visit the following site for more information about the Furukawa Company Group Charter of Corporate Conduct

https://www.furukawakk.co.jp/pdf/CSR/e/csr_23.pdf

Visit the following site for more information about the Furukawa Company Group Code of Conduct for Officers and Employees

https://www.furukawakk.co.jp/pdf/CSR/e/csr_24.pdf
20

コンプライアンスの強化

Customer Relations●Relevant
SDGs

お客さまとの関わり

環境への取り組み

We aim to improve brand strengths of Furukawa products andachieve top rankings in product categories.

Ideal image for2025

Action[Comment from the Responsible Committee] Overview of Fiscal 2020

従業員との関わり

Quality assurance encompassing all products for the sake ofour customers

Plan & Check
Fiscal 2020 targets and assessments

取引先との関わり
Fiscal 2021
targets

Achievement

Implement the FMEA approach with respect to risk assessment★★
(product development) and designR educe risks associated with overseas procurement (respective machinery companies) ★★
Streamline collection of data from inspections and trials (respective machinery companies) ★★
Enable visual monitoring of change points (respective machinery companies)

Our Product Safety Committee engages in various initiatives to ensure that our products are safe andsatisfactory with respect to all products manufactured by the Furukawa Company Group and delivered toour customers. We accordingly aim to guarantee that the quality of our products for overseas procurement,
production and factories overseas, and export embody the pride of Japanese manufacturers.
In fiscal 2020, we promoted the visualization of on-site change points identified as major factors behindcomplaints in order to strengthen quality assurance frameworks at respective business sites, and theimprovement of operational efficiency through the transition to ICT in production and inspection operations.
In fiscal 2021, we will take action to prevent complaints in addition to addressing unachieved items fromthe previous fiscal year. Specifically, we will aim to reflect key points identified during the consolidation ofchange point control data in our quality training, and create a more robust quality assurance frameworks bystriving to intensify checking performance to reduce risks in the early stages of operational processes.

Use the results of change point controls to enhance educational
activities for preventing defects from occurring
株主・投資家との関わり
Improve DR*2 and SR*3 in the development and design stages*1

Strengthen quality assurance management for components
produced overseas
地域社会との関わり
Engage in initiatives involving quality assurance frameworks★★

Take steps to eliminate risk at the stage of development and★
design (respective machinery companies)
E ngage in initiatives involving quality assurance frameworks (respective materials companies) ★★★
★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved

Do
Product Safety Management System
Established within the headquarters of Furukawa Co., Ltd., theProduct Safety Committee consists of the Product Safety Council
comprising product safety officers of core operating companies andsubordinate to the Product Safety Committee, and separate productsafety sessions consisting of the Machinery Session and the Materials
Session. These sessions promote efforts that involve complying withregulations on manufacturing, quality assurance and product safety,
and manufacturing products that customers can use safely withpeace of mind, based on the Group’s Product Safety Basic Policy
and its Product Safety Action Guidelines. Based on the idea that weshould effort firstly geared to improving product reliability with theaim of heightening product safety levels, the Product Safety Council
takes action with emphasis on quality assurance. We are conducting● Product Safety Management System

President &Representative Director
CSR Promotion Meeting
Guidance/instruction

Reporting

CSR Promotion
Department(secretariat)

Furukawa Co., Ltd.
Product Safety Committee
Product Safety Council

Technological
Strategy Department(secretariat)

Core operating companies

21

Machinery Session

Materials Session

Furukawa Industrial
Machinery Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Unic Corporation

Furukawa Metals &Resources Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

activities to improve Group-wide product safety and are evaluating
activities relating to quality assurance and product safety.
Moreover, in the sessions, which consist of members capableof discussing matters from the standpoint of on-site operations,
we have been taking steps to raise awareness of factory-wide
quality control and quality assurance, in addition to engaging in
discussions that also enlisted managers from the design realm,
manufacturing realm, and other divisions apart from quality control.

Session Initiatives
Machinery Session Activity Report
The Machinery Session is continuing to promote efforts to reducecomplaints and monitor production change points that it began
in the last fiscal year under the concept of “making products thatsatisfy our customer .”The session is making efforts to share information about methodsof analyzing and reducing complaints and toward the horizontal
spread of the methods themselves between places of business, inaddition to visualizing change points on the production floor andaggregating data on a monthly basis for the purpose of preventing
defects from occurring.
The session also holds weekly meetings on the progress ofcomplaint response to eliminate factors that cause defects originatingfrom design problems, and on-site patrols by factory managers toeliminate factors that cause defects originating from problems on the
manufacturing floor. The response to matters to correct pointed out inthese progress meetings and on-site patrols is tracked to completionin an effort to improve the effectiveness of our activities.
Additionally, to avoid the risks of components procured overseas,
we are intensifying preliminary and regular audits of affiliated factories,
and using material analysis to rigorously manage and monitor
inspections of initial and transferred products.
The Machinery Session and three core operating companies in
the machinery segment will continue to aim to improve manufacturing
capacity and on-site strengths to earn customers’ trust in the
Furukawa brand.

*1

FMEA: Abbreviation for Failure Mode and Effects Analysis. A systematic analysis method that predicts the causes of quality problems and prevents them at the design and process planning stage.

*2

DR: Abbreviation for Design Review. Third-party reviews of specifications and design specifications, programs, and other outputs from each phase (sales, accounting, purchasing, production management, quality assurance, etc.).

*3

SR: Safety Review. Reviews with emphasis on aspects of safety during the use of newly developed products.

*4

SDS: Abbreviation for Safety Data Sheet.

Tatsuki Nazuka
Product Safety Committee Chairperson,
Director, Senior Executive Officer,
General Manager, Technology Division

Material Session Activity Report
Based on a customer-oriented approach, the respective materials
companies take steps to improve our quality assurance system
encompassing components procured overseas with the goal ofachieving zero market complaints, with respect to materials thatare widely used in electronic devices and other products.
In risk assessment for materials, we provide information aboutrisks in SDS*4 and the like in addition to fully understanding the majorrisks of allowing defective products into circulation. To prevent suchcirculation, we have promoted the automation of inspections and

TOPICShighly reliable designing through FMEA focused on change points
control. The Materials Session shares information obtained from theactivities of each company and works on activities to heighten skills.
As a result of these kinds of efforts, we achieved zero market
complaints in fiscal 2020. Likewise, we aim to achieve zero market
complaints again in fiscal 2021, and will accordingly take steps thatinvolve designing highly reliable products, preventing the release of
defective products, and improving our quality assurance framework
which includes products procured overseas, and work on activities
to further heightening skills of each company.

Establishing and Promoting CO2 Emissions Reduction Targets for Machine Product Development

One of our Group’s priority issues is to reduce emissions of CO2—one of the causes of global warming—in order to realize asustainable society. Based on the idea that improving the mechanical efficiency of our machine products and the work efficiencyof our customers will lead to reduce CO2 emissions, we set the specific emissions targets for each product in line with theGroup development roadmap for key product families. Through these efforts, we strive to improve the awareness of each andevery Group employee toward social contributions, and aim for product development that improves customer satisfaction while
simultaneously contributing to the global environment.

On-Site Educational Activities in the Furukawa Company Group
Our Group provides education and training aiming to improve quality and technicaltransfer in the form of on-site skill training, courses on the basics of quality control,and more. In fiscal 2020, education and training were provided a total of 181
times at six core operating companies. We are proactively engaged in educational
activities to contribute to the global community. For example, FD Coil Philippines,
Inc., an overseas subsidiary of Furukawa Denshi Co., Ltd., accepts local university
students for internships based on an agreement with Bulacan State University of
the Philippines to receive trainees for OJT.

On-the-job training (OJT) at FD COIL PHILIPPINES, INC.

Visit the following site for the Product Safety Basic Policy and the Product Safety Action Guidelines

https://www.furukawakk.co.jp/pdf/CSR/e/csr_21.pdf
22

お客さまとの関わり

Environmental Efforts
Ideal image for2025●Relevant
SDGs

環境への取り組み

従業員との関わり

Promote environmental
and safety activities(Reduce environmental impacts, protect environment and ensure safety, protect biodiversity, publish
environmental and safety activity outcomes, and continue working to ensure there are zero accidents
and zero disasters at suspended and abandoned mines)[Comment from the Responsible Committee] Overview of Fiscal 2020

取引先との関わり

Basic Approach
Based on its the Charter of Corporate Conduct and Basic Environmental
Management Principle, the Furukawa Company Group works to
reduce environmental risks associated with its business activities andengage in corporate activities that are mindful of the global environment
in order to contribute to the realization of a sustainable society.
With respect to measures against global warming, the Group is
promoting activities toward achieving the newly formulated Fourth
Medium-Term Reduction Targets for the 10-year period starting inPracticing Environmental Conservation through Our Overall
Business Activities

株主・投資家との関わり
fiscal 2020, which are based on Vision for 2025.

and reinforcing our capacity to respond to risks.
We are also promoting initiatives to reduce the negative impactof our business activities on biodiversity, as well as cultivating
healthy forests and other activities to conserve biodiversity.

Do★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved● Key Environmental and Safety Targets and Results (Fiscal 2020)
Key fiscal 2020 targets

Fiscal 2020 results

Achievement

Continuous improvement of environmental performance (CO2, water, waste, chemical substances)● Reducing greenhouse gas emissions (by improving efficiency of production processes, etc.)● The Fourth Medium-Term Reduction Targets were formulated and guidance provided for target achievement● Reducing the use of water resources● The environmental conservation data aggregation system was used to ascertain the progress of monthly data at each ★★★
● Reducing total emissions including waste and converting waste into valuables
respective factory and business site
● Reducing emissions of chemical substances by improving productivity andcarefully maintaining and managing abatement equipment

Strengthening workplaces by forming collaborations between sites● Promoting continuous improvement of operations in accordance with the revised ● In Environmental and Safety Audits, improvement processes were confirmed, and guidance provided on points ofimprovement
Environmental Management System (EMS) standard★★★
● Corrective and preventive measures for accidents and disasters were implemented after discussion at each respective site
● Stimulating communication internally and externallyStrengthening preventative measures through analysis of various data
● In Environmental and Safety Audits, the status of record keeping and application of data on energy saving, pollution★★★
prevention, and equipment inspections (including alarms and safety devices) was confirmed, with guidance provided● Making effective use of facilities and environmental and safety data needed for
operation

Environmental Management● In Environmental and Safety Audits, the status of compliance with environmental laws and regulations and the like wasconfirmed and guidance provided on points of improvement● Guidance was provided at each respective site to avoid violations of environmental laws and regulations with regard to new ★★★
business projects involving laws and regulations● Strengthening monitoring of compliance with relevant laws and ordinances

Given the state of the COVID-19 pandemic, the meeting of theEnvironmental & Safety Management Committee (comprising theleaders of the respective production sites) scheduled for this fiscal
year will be held via written correspondence rather than in person.
Affiliates were given new instructions: specifically, they were instructedto (1) execute the Fourth Medium-Term Reduction Targets, and (2)expend every effort on preventive measures and take dependable
actions to achieve the goal of zero accidents and disasters.
● Environment and Safety Promotion System (FY2021)
President and Representative Director
CSR Promotion Meeting
Guidance/Instruction● In Environmental and Safety Audits and onsite inspections, the status of implementation of environmental and safety training was confirmed, and guidance provided● In Environment/Safety Promotion Meetings (Environment), guidance on preventative measures using the results of analysis (data) was provided● There were both environmental and facility accidents, so we did not achieve our target● The number of industrial accidents was lower than the previous fiscal year, but we did not meet our severity rate target★★

Promoting specific initiatives for the reduction of environmental risks

Environmental & Safety Management Committee

Furukawa Co., Ltd.

Management of suspended
and abandoned mines● In Environmental and Safety Audits, environmental risks were identified, and guidance was provided to establish procedures● Promoting specific initiatives on measures for reducing environmental risk toand facilitate responses to the most extreme risks
biodiversity★★★
● Promoting continuous tree-planting, forest management, and animal and plant species ● We continued tree-planting activities including tree-planting parties, promoted management of forests owned by theCompany, and worked to revive firefly
restoration activities

Strengthening workplaces by passing on knowledge and skills● Thorough everyday inspections● Conducting employee training to increase knowledge and skills

Maintaining and managing mine run-off treatment facilities

Maintenance at final disposal sites and in shafts★★★

● Dangerous tasks were identified in order to ensure safety● Conducting employee training to increase knowledge and skills● Environmental and Safety Activity Targets for Fiscal 2021

Environmental protection and safety
and health activities

Operation and promotion of effective environmental and safety management systems by each Group company● Promoting continuous improvement of operation in accordance with the EMS standard ● Promoting systems for compliance with relevant laws and regulations● Promoting the conservation of equipment that impacts on the environment and safety ● Promoting the reliable gathering and efficient application of various kinds of data

Promoting continuous improvement of environmental performance● Reducing greenhouse gas emissions (introducing “top-runner” appliances and machinery, streamlining production processes, developing and institutionalizing eco-friendly products, etc.)● Reducing water consumption (improving the efficiency of water consumption, reusing water resources, streamlining production processes, etc.) ● Reducing total emissions including waste (streamlining raw material usage inorder to restrict the generation of byproducts, recycle materials, etc.) ● Reducing chemical substance emissions (improving production processes, properly managing treatment systems, etc.)

Promoting biodiversity protection activities● Promoting continuous tree-planting activities, forest management, and biodiversity restoration activities

Enhancing preventive measures for eliminating accidents and disasters

Reporting

CSR Promotion
Department (secretariat)

Conducting environment and safety audits useful for everyday operations● Strengthening workplaces through environmental protection and industrial safety and health activities● Strengthening preventative measures and recurrence prevention through environment and safety audits● Reducing the number of environmental and facility accidents, setting the target at zero
● Reducing the industrial accidents rate (Target: Severity rate of 0.03 or lower)

Furukawa Wins Development Bank of Japan’s
グループ会社の取り組み

Environmental & Safety Management Committee

Understanding laws, ordinances, and requirements and strengthening practice● Promoting specific initiatives to reduce environmental risks to biodiversity

Masayuki Kuno
Environment and Safety Management
Committee Chairperson, Executive Officer,
General Manager, Environment and Safety
Management Department

To help build a sustainable society, the Furukawa Company Group works to improve our production facilities andmake our operations safer and more efficient. We also practice environmental conservation that is mindful of the
impact our business activities as a whole have on the global environment and biodiversity. In July 2019, the nameof the department the Committee belongs to was changed from the Environmental & Safety Control Department to
the Environmental & Safety Management Department, and we defined and promote progress on priority matters for
improvement of environmental conservation, safety, and health activities. Regarding initiatives to reduce environmental
impact based on the Fourth Medium-Term Reduction Targets (10-year period) formulated in fiscal 2020, we firstcommunicate with affiliates to ascertain the characteristics of each business site, and then implement the initiatives.
Looking to fiscal 2021 and beyond, we intend to continue to devote energy to environmental conservation
activities toward the achievement of Vision for 2025, namely promoting visualization, striving to reduce
environmental risks, and promoting corporate activities in harmony with the global environment.

In the course of expanding our environmental conservation
地域社会との関わり
activities, we are implementing
preventive measures and enhancing

Plan & Check

Environmental protection and safety and health activities

ActionCore operatingcompanies

Environment/Safety promotion
meetings (environment meetings,
safety meetings)

Furukawa Industrial
Machinery Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Unic Corporation

Environmental &Safety Management
Department(secretariat)

Furukawa Metals &Resources Co., Ltd
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

[Environmental & Safety Management Committee]
Committee Chairperson: General Manager, Environmental & Safety Management Department
Members: General managers of each division, core operating companies’ works generalmanagers (or general managers of administration if there is no general manager of works)
Secretariat: Environmental & Safety Management Department
Meeting location: Head Office, Furukawa Co., Ltd.
Meeting frequency: Once a year
[Environment/Safety promotion meetings (environment meetings, safety meetings)]
Attended by: Environmental & Safety Management Department general manager and employees,
employees with environment and safety responsibilities of core operating companies and otherdivisions
Secretariat: Environmental & Safety Management Department
Meeting location: As a rule, works of core operating companies rotate as meeting location
Meeting frequency: Once a year (starting in fiscal 2021, environment meetings and safety
meetings are being held separately)

TOPICS

Highest Environmental Rating for
Sixth Consecutive Year

Furukawa gets financing from the Development Bank ofJapan Inc. (DBJ) based on our DBJ Environmental Rating.
Furukawa obtained DBJ’s highest environmental rating on
April 30, 2020.
The DBJ praised Furukawa for its Group-wide utilizationof the Environmental Management System to put steadyenvironmental management into practice throughout theGroup’s wide range of business domains, and for its efforts toprovide value to society through the Group’s main businessby demonstrating in detail the environmental impact-reducing
effects of its eco-friendly products. We also won acclaim forour proactive advancement of initiatives to achieve Vision for2025, which include implementing promotion of marketingbased management to create the value of the Furukawa
Brand, specifically by revising our development structure
and introducing the business division structure to propose
technology that leverages collaboration within the Group,and developing skilledhuman resources by
restructuring employee
performance evaluation
systems and enhancing
technical management
capacity. For these andother efforts, we earned
the highest rating for thesixth consecutive year
in recognition of our“especially advanced
efforts in considerationof the environment.”

23

Management of suspended
and abandoned mines● Strengthening preventive measures through thorough recurrence prevention measures and risk assessment ● Intensifying safety activities to eliminate unsafe conditions and behaviors● Reducing facility and environmental accidents by strengthening facility and equipment inspections and proper work procedures ● Reducing occupational accident rates (Target: Severity rate of 0.03 or lower)

Visit the following site for more information about Furukawa’s Basic Environmental Management Principle and Environmental Conservation Activity Policies
Strengthening workplaces by passing on knowledge and skills

Maintaining and managing mine run-off treatment facilities

Maintenance at final disposal sites and in shafts

https://www.furukawakk.co.jp/e/csr/environment/houshin.html
24お客さまとの関わり

Environmental Efforts

環境への取り組み

従業員との関わりDo

取引先との関わり

The Fourth Medium-Term Reduction Targets and
株主・投資家との関わり
Results of the First Year

Environmental and Safety Audits
The Furukawa Company Group conducts annual Environmental
and Safety Audits in May and June to promote a transition fromcorrective measures to preventive measures in an effort to improve
environmental conservation, safety, and health activities at eachsite of business. Given the state of the spread of COVID-19, thetiming of the audits for fiscal 2021 was changed to October andNovember, and the audits will be conducted for the purpose ofcontributing to preventive measures by taking decisive action on
the corrections pointed out by the auditors.

The Fourth Medium-Term Reduction Targets covering the period
地域社会との関わり
fromfiscal 2020 to fiscal 2029 set out environmental performancetargets for the final year of the period—specifically, 2% reductionsof CO2 emissions and water consumption, and 3% reduction of
total emissions including waste—determined in light of discussions
with core operating companies about the increase in environmental
performance they expect in the future under their production plans
based on Vision for 2025.
In the first year of the period, we achieved our reduction
targets for CO2 emissions and total emissions including waste.
However, we slightly failed to achieve our reduction target for water
consumption.
In the second year of the period, we are implementing total
management based on fluctuations in operating rates at eachcompany toward the achievement of the Fourth Medium-Term
Reduction Targets.

Environment/Safety Promotion Meetings (Environment Meetings)
Environment/Safety Promotion Meetings are meetings held once
each year to improve environmental conservation, safety, and healthactivities at each site of business. The meetings are attended bypersonnel responsible for environment and safety of our Group. To
further improve these meetings, they have been held separately—as Environment Meetings and Safety Meetings—since fiscal 2021.
The first Environment Meeting was held in November 2019 at
the Ashio Office of Furukawa Co., Ltd. The meeting consisted of
lively discussion on matters such as the progress of achieving the
Fourth Medium-Term Reduction Targets at each site of business,and the reinforcement of measures to prevent the recurrence offacility and environmental accidents.
The first Safety Meeting was held in July 2020.

● The Fourth Medium-Term Reduction Targets and results of the first year

FY2029FY 2020 (First Year)

Reduction rate
targets*

Reduction rate
targets

Reduction rate
results

2%

0.2%

18%

CO2 emissions

INPUT● Energy consumption

揮発油（ガソリン）OI L

2%Total emissions
including waste

3%(thousand t-CO2)

800

40

600
400

0.3%

1.7%

*Reduction targets are expressed in terms of projected environmental
performance values for fiscal 2029
CO 2

上水道

ガソリン
上水道

CO 2

OI L

工業用水

排水量

灯油

OI L

工業用水

排水量

軽油

OI L

地下水

廃棄物等
総排出量

地下水

廃棄物等
総排出量

灯油

(0.3)%

ガソリン
灯油

Environment/Safety Promotion Meetings (Environment Meetings)
揮発油（ガソリン）

OI L

CO 2

上水道

灯油
軽油

ガソリン
軽油

Material Flow of the FurukawaOIOILLCompany Group (FiscalOI L2020)
揮発油（ガソリン）
灯油

ガソリン
灯油

灯油
軽油

Category

Volume used

軽油

Total energy consumption

揮発油（ガソリン）
揮発油（ガソリン）
灯油
揮発油（ガソリン）
灯油
軽油
灯油

軽油

Ａ重油
軽油

Ａ重油

揮発油
ガソリン）

OIL

ガソリン

Total water
withdrawal

液化石油
ガス
（LPG）
Ａ重油
液化石油
ガス
（LPG）
上水道
都市ガス
液化石油
ガス
（LPG）

OI L

ガソリン

OI L
OI L
灯油
OI
L

ガソリン

ガソリン

OI L
灯油
OI L
軽油
OI
L
灯油

OI L

CO 2 Ａ重油

上水道

Volatile oil(gasoline)

34 kℓ

上水道

CO 2Ａ重油

工業用水

排水量
液化石油
ガス
（LPG）
CO 2

上水道
工業用水

Kerosene
地下水

液化石油
排水量
ガス
（LPG）
廃棄物等
都市ガス
総排出量
排水量

231 kℓ

工業用水

都市ガス
廃棄物等
総排出量

地下水

軽油

OI L
軽油

電気
地下水

Diesel oil
揮発油（ガソリン）

廃棄物等
総排出量

204 kℓ

OIL
灯油

工業用水
電気

灯油

OI L
軽油

OI L

INPUT
地下水

Category

Volume used

液化石油
廃棄物等
ガス
（LPG）
総排出量

軽油

都市ガス

Liquefiedpetroleumgas (LPG)
揮発油（ガソリン）

Volume used

揮発油
（ガソリン）

City gas

電気

灯油
揮発油
（ガソリン）

Electricity

381 t

軽油
灯油

OI L

上水道

ガソリン

揮発油
（ガソリン）

CO 2Ａ重油
軽油

CO 2

灯油

OI L

工業用水

灯油

排水量
液化石油
ガス
（LPG）
Ａ重油
軽油

CO 2

灯油

Clean water
排水量

軽油

20L thousand
OI

工業用水

灯油

OI L
軽油

都市ガス

m³

地下水

Industrial
water
排水量

軽油

廃棄物等 Ａ重油
総排出量560
OI L thousand
軽油
m³

地下水

廃棄物等
都市ガス
総排出量
液化石油
ガス
（LPG）
Ａ重油

液化石油
ガス
（LPG）

都市ガス

液化石油
ス
（LPG）

都市ガス

電気

電気

都市ガス

排水量

上水道

CO 2

OI L

ガソリン

CO2
emissions21,930 t-CO2

ガソリン36,441

OI
L
thousand
kWh
工業用水
軽油
OI
L
上水道
灯油
OI
L

廃棄物等
総排出量
排水量

地下水

廃棄物等
総排出量
排水量

地下水

CO 2

ガソリン

OI L
軽油
OI
L

工業用水

灯油

OI L
軽油

30

438

200
0

24

25

26

26

22

2016

2017

2018

2019

2020

20
10

2016

2017

2018

2019

2020

0

(FY)

Energy consumption decreased 14% year on year due toreduced production in the Electronics and Unic Machinery
segments as well as efforts to reduce energy consumption,
including introducing “top-runner” appliances and machineryand streamlining production processes at each works.
We have received the top ranking of S Class under theevaluation system for Specified Business Operators basedon Japan’s Energy Conservation Law for five consecutive
years since the system was launched in fiscal 2016.
We became a designated manufacturer under Japan’s
Energy Conservation Law (annual consumption of 1,500 kL
crude oil equivalent or more), however developments suchas the closure of the Furukawa Osaka Building at the end of
December 2019 resulted in energy consumption of roughly 1,300
kL crude oil equivalent in fiscal 2020; we do not expect to qualify
as a designated manufacturer in and beyond fiscal 2021.

● Wastewater volume

671

623

2016

2017

2018

692

680

2019

2020

471

465

400

410

477

2,000
0

2017

2018

2019

地下水

TOPICS

廃棄物等
総排出量

Wastewater
477 thousand m³
volumeTotal
emissions
includingwaste

7,039 t2019年12月1日現在
人と環境への配慮項目概念

製品名
使用時の安全作業効率の向上

水質汚濁防止水資源の有効活用

地球温暖化防止

大気汚染防止騒音・振動の低減

廃棄物削減
リサイクル推進

生活環境の向上

医療への貢献

生物多様性

スラリーポンプ
スラリーの輸送

泥水シールドポンプ
高濃度流体の長距離輸送

汚泥ポンプ
汚泥の輸送

電気集じん装置
大気汚染物質の除去

トンネル工事用電気集じん器
トンネル工事時大気汚染物質除去

スパイラル式バーチカルコンベヤ
掘削物の垂直搬送設備

パイプコンベヤ
掘削物の飛散、落下が少ない搬送設備

産
業
機
械

大塊輸送ベルトコンベヤ設備
大塊などの大量輸送用搬送設備

破砕機
岩石、合金鉄などの破砕設備

スクリーン
鉱物などの選別設備

粉砕機
砕石・破砕・粉砕設備

造粒機
粉体の乾式造粒設備

ドラムスクラバー
大塊から細粒製品の洗浄および摩砕設備

トケナイト製湯口ブッシュ
自動車エンジン用鋳造金型の入口部
品

油圧ブレーカ
粉砕・岩盤掘削装置

油圧圧砕機

ロ
ッ
ク
ド
リ
ル

(FY)

5,347
3,956

7,160

7,039

3,803

3,836

2,858
3,374

2,489

2,928

3,357

3,203

2016

2017

2018

2019

2020

(FY)

Total emissions including waste decreased 2%
year on year due to developments such as
reduced production as well as efforts to restrict
the generation of waste and recycle wastematerials. Note that valuables account for 46%
of total emissions including waste.

(FY)

製品写真
機能・用途

2020

Wastewater volume slightly decreased year
on year due to the 2% year-on-year decreasein water consumption.

人と環境へ配慮した製品一覧

事
業

3,458

Waste
6,884

6,832

4,000

0

Water consumption decreased 2% year on year due tomeasures against leakage undertaken at some sites ofbusiness as well as efforts to reduce water consumption,
including improving consumption efficiency, reusing water
resources, and streamlining production processes.

The Group is actively
undertaking initiatives todevelop and institutionalize
eco-friendly products
to contribute to therealization of a sustainable
society. We have created alist of the products giving
consideration to humans
and the environment that
resulted from these efforts.
We intend to continue
our efforts to provide
products and services giving
consideration to humans
and the environment.

6,000

477

200
2016

CO2

Valuables

(t)

8,000

200
0

(FY2020)

Approx.

8,000 t-CO2/year● Total emissions including waste

800
600

CO2 absorption in forests
owned by the company

Approx.

22,000 t-CO2(thousand m³)(thousand m³)666

CO2 emissions frombusiness activities

CO2 emissions decreased 16% year on year
due to the 14% year-on-year decrease inenergy consumption and the CO2 emissions
factor.

● Water resources withdrawn

600

(FY)

コンクリートの小割、破砕装置

油圧クローラドリル鉱山などでの穿孔機

トンネルドリルジャンボ

Refreshed Design of In-Car
Advertising of the Watarase
Keikoku Railway

The Group took the opportunity to revamp the design of
the advertising we post inside train cars of the Watarase
Keikoku Railway, a 44.1-km railway connecting Kiryu
Station in Kiryu, Gunma and Mato Station in Nikko,
Tochigi. We added the names of several Group
companies to the new design, and clarified how eachrelates to the Ashio Copper Mine. The Watarase
Keikoku Railway is a third-sector railway that runs
along the upper reaches of the Watarase River, which
originates in the Ashio area, and passengers can enjoy
seasonal sceneryfrom the railways.
Please keep an
eye on Furukawa
Company Groupadvertisements
when you board.

トンネル工事用穿孔機

電気

液化石油
ガス
（LPG）

電気

電気

電気

工業用水

上水道

Groundwater 0 thousand m³

都市ガス

25

848
thousand m³

CO 2

OI L
灯油
OI
L

511

483

CO2 absorption in forests owned by the company
Forests owned by the company absorb
approximately 8,000 t-CO2 per year, which isequivalent to roughly 36% of the Group’s CO2
emissions in fiscal 2020.

都市ガス

Ａ重油

地下水

Category

灯油

液化石油
ガス
（LPG）

軽油

211 kℓ
電気

廃棄物等 Ａ重油
総排出量

OIL

OUTPUT

都市ガス

電気
軽油

液化石油
廃棄物等
ガス
（LPG）
総排出量

地下水

Fuel oil A

軽油

458

List of Our Products Giving consideration to Humans and the Environment
Now Featured on Our Website

排水量 Ａ重油

工業用水

ガソリン

都市ガス

灯油

OI L

排水量 Ａ重油

工業用水

電気
上水道

OI L

CO 2

上水道

429

400

OI L

揮発油
（ガソリン）

0.2%● CO2 emissions(thousand GJ)

800

Water resource
used

OUTPUT

Visit the following site for a list of our products giving consideration to humans and the environment

https://www.furukawakk.co.jp/e/csr/environment/consideration.html
26

お客さまとの関わり

Environmental Efforts

環境への取り組み

従業員との関わりDo

取引先との関わりManagement of Chemical Substances

Promotion of Biodiversity Protection Activities

株主・投資家との関わり

In fiscal 2020, we handled 15 chemical substances that are required to be reported under the PRTR* system, the same number as in the previous fiscal
year. We were able to decrease atmospheric emissions of xylene, toluene, ethylbenzene, and other substances due to reduced production in each segment
as well as efforts to reduce chemical substance emissions, including improving production
processes and properly managing of exclusion devices.
地域社会との関わり● Emission and Transfer of Substances Required to Be Reported under the PRTR System
Numbers in blue: Decreased from the previous fiscal year
Numbers in red: Increased from the previous fiscal year (unit: kg/year; or mg-TEQ/year for dioxin only)
Emissions

Substance
numberChemical substance

53
75
80
87
243
272
296
297
300
308
332
374
412
438
453

Ethylbenzene
Cadmium and its compounds
XyleneChromium and chromium (III) compounds
Dioxins
Copper salts (water-soluble, except complex salts)
1,2,4-trimethylbenzene
1,3,5-trimethylbenzene
TolueneNickelArsenic and its inorganic compounds
Hydrogen fluoride and its water-soluble salts
Manganese and its compounds
Methylnaphthalene
Molybdenum and its compounds

Atmosphere
FY201932,069047,052
1
8.5
0
5,592
1,519
42,766
0
9
0
6
13
0

Volume transferred

Public waters

FY202028,534040,491
2
2.7
0
5,005
1,302
38,317
0
5
0
5
13
0

FY2019Soil

FY2020

0
0
0
0
0
0
0
0
0
0
0
12
0
0
0

FY2019
0
0
0
0
0
0
0
0
0
0
0
7
0
0
0

FY2020
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Landfill at works

Transfer to sewer

Outside of works

FY2019FY2019FY2019
1,911
2,507
3,802
0
0.05
0
440
180
1,949
0
2,226
1,726
32
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Environmental Accounting
The Furukawa Company Group endeavors to conserve the environment and improve
environmental efficiency by tracking costs required for environmental conservation inreference to the Ministry of the Environment’s Environmental Accounting Guidelines.
Total investments for fiscal 2020 reached ¥639 million. The Group invested in new coating facility
construction, rainwater drainage modification works, updated factory heating systems, and otherinvestments to prevent pollution and conserve energy. Our investments aimed to reinforce preventive
measures, and as a result, pollution prevention costs account for roughly 70% of the total.
Costs totaled ¥1,047 million, the breakdown of which is mainly the costs for promoting
environmental conservation activities such as the thorough maintenance and managementof pollution control equipment and conservation of forests.
● Environmental Conservation Costs (Categories Corresponding to Business Activities)
Content of the principal activities(Millions of yen)

Investments

Costs

611

843

Cost for preventing air pollution and water pollution
Cost for saving energy and maintenance and management of forests owned by theCompany
Cost for recycling, waste processing, and effective use of water

434

576

172

55

5

212

Upstream and downstream costs Cost for recycling, recovering and re-commercialization of products from the market
Cost for operating ISO 14001 standards, environmental education, cleanup andgreening of business sites
R&D cost
R&D cost to develop products that contribute to environmental conservation
Cost associated with various social activities including cleanup of neighborhood
Social activity costs
areas, planting of greenery, etc.
Environmental remediation cost Cost allocated for recovery from environmental degradation due to business activities

0

8

8

61

20

133

0

2

Breakdown(1) Business area costs
Pollution prevention cost
Global environment
conservation cost
Resource circulation cost

Administration cost

Total

0

0

639

1,047

● Environmental Conservation Benefit
Environmental conservation benefit
category
Environmental conservation benefit
related to resources input into businessactivities

Environmental performance indicator (unit)

27

FY2019FY2020Difference from theprevious fiscal year

Total energy input volume(thousand GJ)

511

438

Input volume of water(thousand m3)

692

680

(12)

(t-CO2)

26,147

21,930(4,217)

(t)

7,160

7,039

(121)

Environmental conservation benefit
Volume of greenhouse gas emissions
related to waste or environmental impact
Total emissions including waste
originating from business activities

*

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

FY2020

0
0
0
0
0
11
0
0
0
0
0
0
0
0
0

0
0
0
0
0
6
0
0
0
0
0
0
0
0
0

FY2020
1,894
7
3,672
34
0.21
0
485
168
1,445
0
1,769
1,477
30
0
0

Economic Impacts of Environmental
Conservation

Environmental Conservation Costs

Category

FY2020

PRTR: Pollutant Release and Transfer Register(73)

The reduction of electric power purchasing
costs, due to the operation of turbine
generators of the Osaka Works of Furukawa
Chemicals Co., Ltd. was ¥44 million in fiscal
2020.
The economic impact derived fromresource circulation (gains on sale ofvaluables, etc.) was ¥132 million, a year-onyear decrease of ¥72 million caused by thedecrease in total emissions including waste.
● Economic Impacts of Environmental
Conservation (Material Impacts) (Millions of yen)Content of the benefit
Resource circulation Gains on sale of stainless steel,(gains on sale ofiron, etc.
valuables, etc.)
Energy-saving
effectAmount132

Reduction of electric powerpurchasing costs due to the operationof steam turbine generators
Total

44
176

● Breakdown of Environmental Conservation
Cost Invested

Cancelation of the Ashio Cherry Tree-Planting Drive andFurukawa-no-mori Tree-Planting Drive
As a distinct greening activity of the Group, we organize Ashio
Cherry Tree-Planting Drives aimed at planting 1,000 cherry saplings
on company property in the Ashio area. The first drive was held inMarch 2009, and through 2019, we have held drives each year in
March since then except for 2011, when the drive was canceled
due to the great East Japan Earthquake. To date, a total of about
700 Group employees, family members, and other participants
have planted 540 cherry trees. Unfortunately, we were forced tocancel the event in 2020 as a measure to prevent the spread of thenovel coronavirus.
For the same reason, we canceled the 2020 Furukawa-no-moriTree-Planting Drive, an event through which the Tochigi Furukawa
Association aimed to finish planting trees on roughly 15,200 m2 of land
owned by Furukawa Co., Ltd. in the Matsuki area of Ashio-machi,
Nikko, Tochigi. The Tochigi Furukawa Association is an organizationof Furukawa Group
companies in
Tochigi Prefecturethat held treeplanting drives
each year from2015 to 2019.
We intend tocontinue both ofthese drives in the
future.

Total investment
in environmental
conservation in
fiscal 2020
¥639 million

Global environmental
conservation cost
26.9%

Safety Control Measures at Suspended and Abandoned mines
The Group’s basic policy toward managing suspended andabandoned mines is to continue safety-oriented operations;accordingly, we formulated medium- and long-term plans formine run-off treatment and use them to systematically implement
prevention work.
In the last several years, typhoons and other natural disasters
have frequently caused long-term power outages. In fiscal 2020,
we installed an emergency generator capable of running for 24hours on one tank of fuel in the Iimori Old Mine Management Officein Wakayama Prefecture to maintain the mine run-off treatment
functions of mine facilities even when access roads to the facilities
or external fuel supplies are cut off during disasters.

 R&D cost
3.1%

Pollution prevention
cost
67.9%

As living creatures that reflect the state of the environment, fireflies are
said to be symbols of healthy water environments. With the aim of
rehabilitating the environment to enable fireflies to live sustainably, andto pass that environment on to the next generation, our Environmental& Safety Management Department is engaging in a genji-botaru firefly(Luciola cruciata) rehabilitation project at the site of the former Kune
Mine in the Tenryu-ku of Hamamatsu City in Shizuoka Prefecture, and
it is said that genji-botaru firefly danced in the past.
In fiscal 2020, we planted vegetation around a pond to create
an environment suited to firefly breeding, and also built a fence
around the pond to prevent deer from eating the vegetation.
We also plan to launch firefly rehabilitation activities at thesite of the Ashio Copper Mine in Ashio-machi, Nikko City, Tochigi
Prefecture.

Grasses grow densely as a result of our efforts toplant vegetation around the firefly pond

Cherry trees planted in the first drive in March 2009

Resource circulation cost
0.8%

Administration
cost
1.3%

Firefly Rehabilitation Project at the Site of the Former Kune Mine

The newly installed emergency generator

TOPICS

Contributing to Water Environment
Conservation

The Osaka Works of Furukawa Chemicals Co., Ltd.
accounted for roughly 40% of the Group’s water
consumption in fiscal 2020. The Osaka Works uses
the water to manufacture the water treatment agentsaluminum sulfate solution and polyferric sulfate solutions.
Roughly 30% of the aluminum sulfate solution
produced by the Osaka Works are used as flocculants
for drinking water, contributing to the production ofclean water for 15 million people on an annualized basis.
Additionally, the polyferric sulfate solutions producedby the Osaka Works
is mainly used
as a flocculant in
wastewater treatment,
contributing to thepurification of 9.8
billion tons of water(enough to fill Tokyo
Dome about 8,000
times) per year.

Visit the following site for information about our Biodiversity Action Guidelines

https://www.furukawakk.co.jp/e/csr/environment/houshin.html
28

環境への取り組み

Employee Relations●Relevant
SDGs

従業員との関わり取引先との関わり

Ideal image for2025

Our efforts to promote diversification of working styles in a manner that makes use of diverse humanresources will culminate in rewarding workplace environments where it is possible to create newforms of value by maximizing the abilities of each and every employee.

Action[Comment from a Responsible Department] Overview of Fiscal 2020

株主・投資家との関わり

We will create workplace environments that employees
find rewarding complete with fair performance
evaluations and incentives.

Plan & Check
Fiscal 2020 targets and assessments

Achievement

Cultivate human resources·· Introduce new employee programs·· Consider revisions to the personnel evaluation system·· Review possibility of increasing the retirement age

地域社会との関わり
Fiscal 2021
targetsC ultivate human resources·· Redouble hiring efforts·· Radically revise training system

★★★
★★★
★★★

Promote work-life balance·· Implement telework options·· Expand application of the flextime system
Promote diversity·· Actively employ women in career-track positions

Promote diversity·· Actively employ women in planning group positions (career-track positions)★★★

(The percentage of women among new graduate hires shall be 20% or higher)·· Redouble efforts to hire people with disabilities(The percentage of employees with disabilities in the Furukawa Company Group shall be 2.0% or higher.)

Senior Executive Officer,
General Manager,
Human Resources & General
Affairs Department

One of our policies geared to achieving our Vision for 2025 is to enhance our human resource foundations witha focus on cultivating human resources, promoting work-life balance, and promoting diversity. In order for the
Furukawa Company Group to remain indispensable to society well into the future, our employees must remain
one step ahead with respect to achieving swift transformation and growth, in alignment with the changing
times. As such, we will help our employees grow by flexibly adopting new employment options geared toembracing diverse personalities, values and living arrangements, and by creating work environments that help
give rise to greater creativity.

P romote healthy and productivity management·· Reduce annual total working hours·· Improve the percentage of scheduled medical examinations received·· Restrict time spent smoking

★★★
★★★

Atsushi Takano(The percentage of women among new graduate hires shall be 20% or higher)·· Implement human rights due diligenceImprove work environments·· Establish productive work environments★★

★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved

Do
Realizing Rewarding Environments

Promoting Diversity

Respect for Human Rights

The Furukawa Company Group is undertaking various reforms
to realize healthy, rewarding environments for diverse humanresources and improve labor productivity and creativity byfacilitating the growth of each and every employee.

Empowering the Female Workforce

Harassment and Discrimination Prohibited● Three Issues and Considerations for Realizing Rewarding Environments
Developing
human resources
and using themproperly

Developing diverse human resources in response to factors such as theirlength of service, position, job description, and abilities; putting the mostcapable employees in the right positions regardless of what track they areon; establishing challenging individual targets; and proper evaluation

Work-stylereforms

Improving working environments such as Automate and computerize
operations, shorten meetings, effectively manage meetings; aptly applying
various working conditions (flextime systems, teleworking, adopt discretionary
work systems; and reform of mindsets toward improving operational efficiency

Target No. 1

Ensure that women account for at least 20% of all new graduate hires

Target No. 2

Employ at least 10 female managers

Target No. 3

Establish a re-employment program for retirees

Reducing annual total working hours, improving the percentage ofannual paid leave taken, improving the percentage of scheduled medical
examinations received, actively implementing health promotion activities

Target No. 4

Encourage employees to take paid annual leave at an average rate of 12 days
per person per year

Target No. 5

Ensure that at least 10 male employees take parental leave

Establishinghealthy
workplaces● Quantitative Targets for Realizing Rewarding Environments
Monthly extra working hours
Percentage of paid annual leave taken
Annual total actual working hours
Rate of medical examinations received

Targets

Fiscal 2020 results

15.5 hours

22.4 hours

60％

53.2%

Less than 2,000 hours

2,083 hours

100%

Less than 100%**Overall statistics have not yet been compiled

Initiatives for Achieving Positive Work-Life Balance
Creating a Comfortable Work Environment
We have been promoting initiatives that help employees maintaintheir health and achieve positive work–life balance by enablingthem to reduce their overtime and take a greater proportion of their
paid annual leave.
● Initiatives in Fiscal 2020·· Introduced employment system that would ensure stringent
oversight of working hours·· Set days on which employees are encouraged to take paid
annual leave and urged employees who have used a low
proportion of such leave (fewer than 5 days) to take time off·· Introduced teleworking and expanded application of the
flextime system·· Held seminars on balancing work with parenting and othercaregiving obligations
29

Furukawa Co., Ltd. has been focusing its efforts on actively
recruiting and employing female talent. To such ends, we drew up
our Action Plan for Promoting Support for Female Employees on
April 1, 2016, and have been otherwise expanding systems geared
to empowering our female employees.
● Action Plan for Promoting Support for Female Employees(April 1, 2016 to March 31, 2021)

Support for Employees Raising Children
We have expanded our support systems for employees who areraising children in part by making a greater range of employees
eligible to use our various programs addressing childcare needs,
and by providing paid leave to cover some time taken off to carefor infants and toddlers. We also encourage male employees totake parental leave so that they might also have opportunities toparticipate in child rearing.

Hiring People with Disabilities
We hire people with disabilities at various workplaces and forvarious types of work, thereby promoting their independence andparticipation in society.

Hiring Foreign Nationals
Given its active pursuit of overseas expansion, the Furukawa
Company Group does not base its hiring decisions on nationality.
Moreover, we strive to deepen partnerships that transcend nationality
as we promote a spirit of mutual respect for individual differences.

Employment of Older Workers
On April 1, 2020, we raised the official retirement age from 60
to 65 to help older workers enjoy stable employment and more
opportunities to flourish.
We expect them to play active roles in endeavors such as
training our mid-level and younger employees by imparting theskills they have developed over their long careers.

The Furukawa Company Group prohibits all forms of harassment
and discrimination, premised on our commitment to recognizing
the diverse values of individuals and accordingly creating a
rewarding corporate culture absent of human rights violations anddiscrimination, where individuals are evaluated fairly. Moreover,
we resolutely take action against harassment and discrimination
based on our internal rules.

Training on Human Rights
The Furukawa Company Group has established a code of
behavior calling for its employees to respect basic human rights
and refrain from using discriminatory language, and accordingly
has all of its newly hired employees take part in human rights
training. Additionally, employees who take part in our employment
hierarchy-specific training undergo in-house training pertaining toworkplace harassment and other efforts to create pleasant work
environments and learn from case studies of specific developmentsthat have given rise to human rights violations.

Cultivating Human Resources
Basic ApproachPremised on its fundamental policy of “what supports limitlessdevelopment of a company is people,” the Furukawa Company
Group employs talented individuals who will actively take on all
challenges, while striving to recognize the diverse values ofindividuals and accordingly creating a rewarding corporate culture
absent of human rights violations and discrimination, whereindividuals are evaluated fairly.

Development of Human Resources
We seek to optimize the Group’s business framework and maximize
its corporate value by developing professional talent and creating
work environments that enable employees to exercise their abilities
to the fullest.
● Employment Hierarchy-specific Training

Our employment hierarchy-specific training helps employees develop
the ability to address societal changes while acquiring basic knowledge
necessary for their respective positions. The extensive training programis organized by level of the employment-hierarchy, encompassing
newly hired, second year, third year, fifth year, eighth year, and tenthyear employees, newly appointed managers, and section managers.
The training program for newly hired employees incorporates training
pertaining to the Ashio Copper Mine’s history, antipollution measures,present status of safety management, and afforestation initiatives.
● Training Tailored to Areas of Expertise and Occupations

We implement training tailored to employees’ areas of expertiseand job performance, thereby enabling them to gain extensive
knowledge and acquire specialized skills in their respective fields.
Meanwhile, we actively encourage our employees to participate
in external seminars on specialized subjects, and to gain public
qualifications. We also endeavor to develop professional talentequipped with extensive knowledge of cutting-edge technologies
and social trends by supporting their involvement in educationalorganizations and academic societies outside of the workplace.

Personnel Evaluation System
On July 1, 2019, we adopted a role grade system whereby an
employee is assigned a grade based on the importance of the role
he or she is expected to fulfill. To such an end, we have discontinued
our previous system of assigning grades based on professional
qualifications. The new role grade system is the basis of ourpersonnel evaluation system, which we use to evaluate employees’
job performance, achievement of targets, motivation, and proficiency
to guide, cultivate, and develop their potential as well as ensuring theirappropriate job placement, all in an effort to establish environments
in which motivated employees can flourish with a sense of security.

Communication to Facilitate Training of Subordinates
Interviews are conducted between immediate supervisors andtheir subordinates on a twice yearly basis, in addition to the daily
communication that takes place between managers and theiremployees. The interviews enable managers to furnish feedback to
employees regarding their work, achievements, points of self-reflection,and findings of performance evaluations. Upon having reviewed specifics
of employee self-assessments, managers then also furnish advice toemployees, verify targets that have been established, and share details inthat regard. Meanwhile, supervisors also provide their assessments withrespect to the self-analysis. The process of undergoing straightforward
performance assessments by their supervisors enables employees
to scrutinize themselves on a regular basis, thereby helps fuel theirmotivation to pursue further personal development.
30

環境への取り組み

Employee Relations

従業員との関わり取引先との関わりDo

株主・投資家との関わり● Smoking and Regular Exercise Among Furukawa Company Group Employees

Employee Health Management
At the Furukawa Company Group, we monitor the health of ouremployees particularly through our regularly scheduled physicalexaminations and special physical examinations for our employees
who handle specified hazardous substances. Meanwhile, on thebasis of such physical examination outcomes we also provide
health-related guidance and provide support with respect toemployee health maintenance. We also safeguard our employees
from the effects of second-hand smoke by setting up separatesmoking areas as stipulated under Japan’s Health Promotion Act.
In fiscal 2018, in order to further promote efforts to improve
employee health, we strengthened our partnership with Furukawa
Health Insurance Society, and embarked on efforts that involve
planning and overhauling various initiatives, drawing on physicalexamination data. We are going to work to achieve lower ratesof smoking among our workforce while encouraging a higher
proportion of employees to engage in regular exercise.
We will also engage in preventative measures with respect toemployee mental health. This will involve setting specific targets
geared to ensuring that the company is a safe and pleasant place
to work, while striving to maintain positive mental health basedon the Furukawa Group Company Mental Health Promotion Plan.
Meanwhile, we will strive to help employees who are struggling withmental health issues return to work. This will involve coordinatedefforts enlisting occupational physicians, personnel and laboraffairs representatives, and supervisors, and will furthermore entail
our working in conjunction with specialized institutions and medical
specialists from outside the Group.

地域社会との関わり
According to a survey of employees who are 40 years of age and older

33.8% (2.1% more than in the previous year)
25.1% (1.9% fewer than in the previous year)

Smoking rate
Employees who exercise** This refers to the percentage of employees who exercise to the point ofgenerating slight perspiration for no less than 30 minutes per exercise session,
and who have been exercising at least twice per week for at least one year.

TOPICS

Recognized as a 2020 CertifiedHealth & Productivity Management
Outstanding Organization in the Large
Enterprise Category (White 500)

Furukawa Co., Ltd. was recognized as a 2020 CertifiedHealth & Productivity Management Outstanding
Organization in the Large Enterprise Category for its efforts
with respect to strategically carrying out initiatives with regard
to its employees’ health from a management perspective,
based on findings of
the Certified Health &Productivity Management
Outstanding Organizations
R e c o g n i t i o n p ro g r a m
implemented by Japan’s
Ministry of Economy, Tradeand Industry (METI).

● Work-life Balance (Target: Non-managerial employees of Furukawa Co., Ltd.)
Unit

Number of employees taking
parental leave

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Persons

25

35

35

33

18

Female Persons

4

7

8

6

10

Male

Male

％

68.6

97.2

85.4

86.8

93.3

Female

％

100

100

100

100

100

Male

Days

21.8

3.5

13.9

21.4

6

Female

Days

293.0

517.6

390.5

499.0

320.3

Percentage of employees returning to work
after having taken parental leave

％

100

100

100

100

100

0

0

0

1

0

Percentage of employees taking
parental leave
Average number of days taken forparental leave

Number of employees taking caregiver leave Persons
Prescribed working hours

Hours

1,891

1,891

1,891

1,891

1,891

Extra working hours

Hours

286

248

322

305

268

Hours of paid annual leave taken

Hours

72

75

76

79

76

Total actual working hours

Hours

2,105

2,064

2,138

2,117

2,083

Overtime hours (monthly average)

Hours

23.80

20.65

26.85

25.40

22.36

％

45.5

47.4

48.2

51.0

53.2

Percentage of paid annual leave taken

Visit the following site for more information about employee data
https://www.furukawakk.co.jp/pdf/CSR/e/csr_18.pdf

31

Visit the following site for more information about employee relations
https://www.furukawakk.co.jp/pdf/CSR/e/csr_12.pdf

Occupational Safety and HealthOccupational Safety and Health Activities

Initiatives to Prevent Work-related Accidents
To prevent work-related accidents, the Furukawa Company Groupregularly holds Health and Safety Committee meetings and carries
out safety patrols at its respective works and business sites. We
also implement systematic training and training tailored to ouremployees. When it comes to education, we clarify the standards
for competencies that personnel who are in charge of safety andhealth need to master to carry out their work, and after training them,
we evaluate whether they have truly mastered the competencies.
When these evaluations reveal areas of insufficiency, we advise
the personnel to repeat the training. We are also enhancing our
guidance of personnel who are in charge of safety and health andother employees in order to intensify workplace patrols, KY (hazard
prediction) and other efforts needed to achieve our goal of zeroaccidents and disasters.
In fiscal 2020, the frequency of occupational accidents
declined, but the severity increased. This is because fiscal 2020
includes leaves of absence stemming from incidents that occurredin the previous fiscal year. We are committed to intensifying safety
activities toward the elimination of unsafe conditions and behaviors
toward our goal of zero accidents and disasters.
●O ccupational Safety Record of the Furukawa Company Group: Frequency
and Severity of Accidents

0.09(Frequency)

1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

Frequency

0.08
0.05
1.08
0.65
2016

2017

(Severity)

Severity

0.06
0.04

0.86
0.21

0.43
2018

2019

2020 (FY)

0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0

Many different poisonous gases are used in the production
processes at each of the Group’s respective works and businesssites; therefore, air respirator drills are repeatedly carried out tofamiliarize employees with what to do during poisonous gas leaks.
Additionally, in order to ensure the safe usage of the air
respirators, we ensure
the proper number of gas
cylinders are on hand
and regularly inspect theappearance and functioningof the equipment. We display
the amount of gas remaining
in the cylinders where the air
An Advanced Technology Department employee
practices putting on an air respirator
respirators are stored in aneffort to visualize usage time.

Instruction on Safety at Overseas Business Locations
At our overseas business locations, we conduct annual surveys
of matters such as local implementation of legally mandated
inspections of facilities; the status of written work instructions,operation manuals, and other documents needed for operation; theacquisition status of official qualifications; and the implementation
status of Safety and Health Committee meetings and safety patrols.
We also provide guidance and advice with the aim of achieving
safe, comfortable work environments in light of factors such as
local laws, climate, and natural features.

● Number of incidents requiring leave of absence in the Furukawa Company Group
Number of incidents
requiring leave of absence

FY2016FY2017FY2018FY2019FY2020

5

3

4

2

1

Notes: 1. Accident frequency refers to the rate of occupational accidents with casualties per one
million total working hours.
2. Accident severity refers to the number of working days lost per 1,000 total work hours.
3. Frequency and severity are calculated on the basis of incidents requiring leaves ofabsence of at least four days.

Safety Measures and Education
As a safety measure for fire
prevention, the Group carries
out scheduled firefighting andevacuation drills each year. We
do more than simply circulatedisaster risk reduction manuals;
we ensure that our employees
are intimately familiar with how to
A firefighting drill at Takasaki Yoshii Works of
Furukawa Rock Drill Co., Ltd.
use fire extinguishers and otherequipment so that they can react swiftly and accordingly when fires occur.
We intend to continue carrying out firefighting and evacuation
drills in which everyone participates as part of our disaster risk
reduction activities.

TOPICS“Anzen Sen’ichi” Registered as
TrademarkWe applied to registerthephrase“AnzenSen’ichi” (Safety First) asa trademark, and received
permissioninMarch2020. The first entity inJapan to engage in industrial safety activities was the
Ashio Kogyosyo (mining station) of Furukawa General
Partnership, our predecessor. In the early 1900s,
Masayuki Odagawa, an engineer at the Kogyosyo, visited
the U.S. and witnessed activities in American industry thataligned with the slogan “Safety First.” The activities had aprofound impact on Odagawa. In 1912, one year after hereturned to Japan and was promoted to manager of the
Ashio Kogyosyo, he erected signs bearing the phrase“Anzen Sen’ichi” inside and outside mineshafts, took
steps to improve safety awareness among employees,
and undertook other efforts to launch safety activities
that involved the entire Kogyosyo. Odagawa’s andFurukawa’s efforts are believed to be the first voluntary
safety activities carried out in Japanese industry. The
phrase “Anzen Sen’ichi” is deeply meaningful to us as
the owners of the Ashio Copper Mine, the birthplace ofsafety activities in Japan, and is a highly recognizablephrase throughout Japanese society. For these reasons,and to prevent third parties from using the phrase in the
future, we applied for trademark registration.

Visit the following site for Furukawa Company Group Basic Principles of Occupational Safety and Health and Occupational Safety and Health Policies

https://www.furukawakk.co.jp/pdf/CSR/e/csr_15.pdf
32

従業員との関わり

Supplier Relations
Ideal image for2025●Relevant
SDGs

取引先との関わり

株主・投資家との関わり

Pursue QCD based on CSR-oriented procurement aimed at sustainable
manufacture and sales of products trusted by customers
地域社会との関わり

Fiscal 2021 targets

Achievement[Comment from the Responsible Department] Overview of Fiscal 2020

Naoki Ikeda

Furthering Partnerships with Suppliers and Promoting
CSR Activities in the Supply Chain

Plan & Check
Fiscal 2020 targets and assessments

ActionFurther improve the precision of CSR surveys of major suppliers ★★★
Conduct interviews about CSR activities tailored to the★★
circumstances of individual suppliersEstablish a PDCA cycle for the process from CSR surveys tofollow-up for major suppliers

Strengthen management (QCD*1 + CSR) of major suppliers★★

Foster partnerships with suppliers

Foster partnerships with suppliers★★★

Continue Groupwide CSR-oriented procurement activities

Continue Groupwide CSR-oriented procurement activities★★★

Strengthen management (QCD + CSR) of major suppliers

General Manager, Purchasing
Department

In fiscal 2020, we completed CSR promotion questionnaires and follow-up questionnaires that we had begun
administrating to the major suppliers of each operating company in fiscal 2017, analyzed the results, andconducted individual interviews and follow-up based on the results.
To promote further understanding of the Group’s CSR procurement, we will aim to conduct surveys andanalysis through efforts such as questionnaires and establish a PDCA cycle for follow-up through such means
as interviews. We also intend to use close communication to further partnerships with our suppliers.
We are also committed to making contributions to society throughout the supply chain through CSR
activities.

★★★ Target achieved; ★★ Target partially achieved; ★ Target not achieved

Do
Basic Approach

Promoting CSR Activities in the Supply Chain

The Furukawa Company Group aims to build and maintainmutually beneficial and reciprocal trust-based relationships byexchanging information with suppliers and otherwise emphasizing
communication. Here, we adhere to the principles of fairness andimpartiality, comprehensive economic rationality, and the spirit ofcompliance with laws and confidentiality as set out in the Furukawa
Company Group Basic Procurement Policies. At the same time, we
encourage procurement activities that take CSR into consideration
based on partnerships with our suppliers.
In addition, we are making efforts to procure copper ore frommines outside Japan in ways that consider the environmental
impacts, labor problems, and other issues.

Envisaging its desired image in 2025, the Group’s Procurement
Division strives to “pursue QCD based on CSR-oriented
procurement aimed at sustainable manufacture and sales of
products trusted by customers.”
Cooperative relationships are essential for this initiative, notonly within the Group but also throughout the entire supply chain,including customers and suppliers. In order to establish thesecooperative relationships, we are steadily expanding the scopeof summarized explanations and surveys about the Group’s CSR
procurement from existing suppliers to new suppliers as well.
We intend to continue promoting CSR activities throughout the
supply chain.

● Transition of CSR Procurement Initiatives
FY2015-2016

CSR surveys

Policy establishment

2014 ··Established Furukawa Company
Group Basic Procurement Policies

FY2017-2018

Internal training

In fiscal 2020, we conducted follow-up interviews of individual
major suppliers in response to the results of questionnaire surveys
administered to them. In the interviews, we confirmed their
responses to the surveys, provided them with main point of theGroup’s CSR procurement activities, exchanged opinions, andattempted to reach a common understanding of the activities.

Strengthening Relations with Major Suppliers: Fostering
Partnerships

Completion of Initial CSR Surveys to Major Suppliers of GroupOperating Companies
To further promote CSR activities throughout the entire supply
chain, we explained the Group’s CSR Promotion Guidelines andadministered questionnaire surveys to major suppliers of Group
operating companies. We completed the first round of these

FY2019-2020··Prepared questionnaires for
suppliers2018 ··Conducted questionnaire surveys (Target: Major suppliers)(Furukawa Castec Co., Ltd.) (Ashio Rock Drill Co., Ltd.) (FRD
Iwaki Co., Ltd.)Questionnaire
surveys (operatingcompanies)

2016 ··Conducted questionnaire surveys (Target: Major suppliers)(Furukawa Co., Ltd.) (Core operating companies in the
Machinery segment) (Furukawa Denshi Co., Ltd.)2017 ··Conducted questionnaire surveys (Subject: Major suppliers)(Furukawa Chemicals Co., Ltd.)

Additionalquestionnaire
surveys (operatingcompanies)

2017 ··Conducted additional questionnaire surveys (Target: Major suppliers) 2018 ··Conducted additional questionnaire surveys (Target: Major
suppliers)(Furukawa Co., Ltd.) (Core operating companies in the
Machinery segment) (Furukawa Denshi Co., Ltd.) (Furukawa(Furukawa Castec Co., Ltd.) (Ashio Rock Drill Co., Ltd.) (FRD
Chemicals Co., Ltd.)
Iwaki Co., Ltd.)2018 ··Began conducting interviews (Target: Major suppliers)
2019 ··Conducted interviews (Target: Major suppliers)

Interview surveys

33

explanations and surveys in fiscal 2020, and intend to conduct
surveys on a regular basis in the future.

CSR and CSR
procurement

2016 ··Furukawa Co., Ltd. (Target: Purchasing Department employees) 2018 ··Furukawa Castec Co., Ltd. (Target: Responsible person in
Purchasing Department)··Core operating companies in the Machinery segment (Target:··Ashio Rock Drill Co., Ltd. (Target: Responsible person insection managers of Purchasing Department)
Purchasing Department)··Core operating companies in the Machinery segment (Target:··FRD Iwaki Co., Ltd. (Target: Responsible person in Purchasing
Purchasing Department employees)
Department)2017 ··Furukawa Chemicals Co., Ltd. (Target: Responsible person in2019 ··Core operating companies in the Machinery segment (Target:
Purchasing Department)
Materials Division section chiefs)

SDGs, ESG, other2017 ··Core operating companies in the Machinery segment,
headquarters (Target: Purchasing Department generalmanagers and section managers)
2017 ··Materials Division of headquarters (Target: Purchasing
Department employees)

QCD: Abbreviation for quality (Q), cost (C), and delivery (D)2019 ··Materials Division of headquarters (Target: Materials Divisionemployees)

The Group considers suppliers to be important partners in aiming
for mutual development.
Thus, in order to cement
these partnerships,
we intend to use CSR
initiatives to deepen
mutual understanding
and further foster trustbased relationships.
A production briefing at the Sakura Works of Furukawa
Unic Corporation2017 ··Prepared additional questionnaires for suppliers

2015 ··Created Furukawa Company
Group CSR Guidelines for
suppliers*1

Follow-up on Results of Questionnaire Surveys for Major
Suppliers

Providing Technical Guidance to Suppliers

Materials Strategy Conferences

In order to continue to maintain trust in the Group’s products, wemust maintain trust not only in the company itself, but also in thelevel of procured goods. Therefore, it is vital to survey, instruct,and manage suppliers—our partners—as to the quality of theirproducts in addition to humanrights, environmental issues, safety,
and other aspects. The Purchasing
Department of Furukawa Co., Ltd.
is cooperating with core operatingcompanies in the Machinery
segment to offer guidance,
recommendations, and other
Offering technical guidance
to an affiliate in Japansupport to suppliers as necessary.
In fiscal 2020, we visited
affiliates in Japan and China thatfabricate components for can
manufacturing, and confirmed andoffered guidance on their material
management and quality inspection
systems for each fabrication
Offering technical guidance to aprocess, and on environmental
Chinese affiliate that fabricatesissues, safety measures and more.
components for can manufacturing

Each year, the company’s Purchasing Department holds two
Materials Strategy Conferences attended by the managers ofPurchasing Department at core operating companies in the
Machinery segment (Furukawa Industrial Machinery Systems Co.,
Ltd., Furukawa Rock Drill Co., Ltd., Furukawa Unic Corporation).
At these conferences, in an effort to promote procurement
activities based on the Furukawa Company Group Basic
Procurement Policies, participants confirm each operatingcompany’s progress on annual targets and exchange opinions
toward issue resolution.
In fiscal 2020, participants examined in detail and exchanged
opinions on CSR procurement in the Materials segment andstrengthened supplier management geared toward fostering
partnerships, core elements of Vision for 2025 for the Procurement
segment.
More focused activities are carried out as opportunities to
examine initiatives consistent with the policies of the Materials
Strategy Conferences in more detail; these activities include
scheduled monthly meetings at each operating company andmeetings held for individual projects as needed.

Visit the following site for Furukawa Company Group Basic Procurement Policies
Visit the following site for Furukawa Company Group CSR Promotion Guidelines

https://www.furukawakk.co.jp/pdf/CSR/e/csr_20.pdf
https://www.furukawakk.co.jp/pdf/CSR/e/csr_17.pdf
34

取引先との関わり

株主・投資家との関わり

Community Relations

Shareholder and Investor Relations●Relevant
地域社会との関わり
SDGs●Relevant
株主・投資家との関わり
SDGs

地域社会との関わり

Participating in Volunteer Cleanup of Usuiso Beachin Iwaki
Furukawa Industrial Machinery Systems Co., Ltd. (headquarters
and Tohoku Branch Office), Furukawa Denshi Co., Ltd., Iwaki
Semiconductor Co., Ltd., FRD Iwaki Co., Ltd., and Furukawa Co.,
Ltd. (headquarters) participated in a cleanup volunteer activity at
the Usuiso Beach in Iwaki City, Fukushima Prefecture, organizedby the Iwaki Furukawa Association, on Saturday, July 6, 2019.
The cleanup activities had been suspended after the Great East
Japan Earthquake, but were resumed in 2015, first at Misaki Parkin Iwaki City from 2015 to 2017, and then at the Usuiso Beach from2018, when the coastline maintenance was completed.
Under a cloudy sky, more than 170 people from the 16 companiesof the Iwaki Furukawa Association—including more than 40 people
from the Group—gathered to clean up the beach before the official
opening of swimming season.

Launching the Furukawa Ashio History Museum

Basic Approach

Transferred from the NPO Ashio History Museum, we launched
operations under a new name—Furukawa Ashio History
Museum—in April 2019. In 2019, more than 3,000 people visitedthe museum, including some groups that made reservations.
The museum features displays of over 30,000 materials,
photos, ores, and other valuable items donated or deposited to themuseum by people with connections to the Ashio Copper Mine andthe company. Also featured are photos of Group founder Ichibei
Furukawa and other Company and Group presidents through theyears as well as a statue of Ichibei Furukawa; a bust of Choshichi
Kimura, who was Furukawa Ichibei’s right-hand man and the first
board chairperson of Furukawa Co., Ltd.; and exhibits of Furukawa
Ichibei’s favorite smoking pipe, letters bearing his signature, folding
screens, and more. The Furukawa Ashio History Museum is the
only place in Japan where these items of historical value—items of
the founding Furukawa family—can be found.
Also on display are the first rock drill made in Japan, and withother memorable items,
including photographs anddioramas for the people of
Ashio. Visitors have offered
the highest praise for theability to catch a glimpse oflife during the height of the
Ashio Copper Mine.

The purpose of the IR activities of the Furukawa Company Group
is to provide corporate information including management policies,
business descriptions, business strategies, performance andfinancial information fairly, rapidly, and accurately; build trust-based
relationships through dialogue; and earn appropriate valuations of
our corporate value in the stock market; all so that shareholders

and investors have a proper understanding of the Group.
In addition, our basic stance is to relay the opinions anddesires of shareholders and investors with regard to the Groupto management as feedback, and otherwise strive for sufficient
two-way communication.

Primary IR Activities
Communication with Institutional Investors and Analysts

Communication with Individual Investors

We hold results briefings, individual IR meetings and small
meetings, distribute and disseminate annual reports, hold toursof our plants and the like, conduct interview surveys, and more aspart of our IR activities.

We disclose information on our website, distribute and disseminate
convocation notices and reports for shareholders, email news
releases and updated information on IR sites, and more as part of
our IR activities.

第153 回 定時株主総会

招集ご通知

開催日時

2020年6月26日（金曜日）午前10時（受付開始：午前9時）

開催場所

Hosting Field Trip for Ashio Elementary School
Ashio Rock Drill Co., Ltd. regularly offers social studies field trip
for the children of Ashio Elementary School, which is located in
the area.
On January 21, 2020, Ashio Rock Drill invited four thirdgrade children and their social studies’ teacher to the production
line where machines such as compact pneumatic rock drills andcompact hydraulic breakers are manufactured.
During the field trip, the children experienced operating an
actual rock drill, and learned that the rock drills manufactured at
the company are exported throughout the world. The tour madequite an impression on the children, with one expressing their
excitement to learn that a company in their very own hometownof Ashio made rock drills used throughout the world, and another
their intent to share what they’d learned with their family.
Ashio Rock Drill will continue to host field trips in the future toensure good communication with the local people.

東京都千代田区丸の内二丁目2番3号

当社会議室（丸の内仲通りビル3階）※末尾の「定時株主総会会場ご案内図」をご参照ください｡

決議事項

第1号議案
第2号議案

剰余金処分の件

監査役2名選任の件

新型コロナウイルス対策のお願い
可能な限りご来場を見合わせ、
書面またはインターネット等により議決権をご行使くださいますようお願い申し上げます。
郵送またはインターネット等による議決権行使期限2020年6月25日（木曜日）午後5時まで▶ 詳細は5〜6頁をご参照ください。

今回の株主総会につきましては、お土産のご用意はございません。
あらかじめご了承くださいますようお願い申し上げます。
証券コード：5715

Providing Information Online

2020年05月21日 17時22分 $FOLDER; 1ページ （Tess 1.50(64) 20200401(on201812)_02）

Front pagehttps://www.furukawakk.co.jp/e_index.htm
First floor of the museum

Investor relations

https://www.furukawakk.co.jp/e/ir/

Donations to the City of Nikko
In 1908, Ashio became the birthplace of consumers’ cooperatives
in Japan with the establishment of the former San’yokai (theAshio Copper Mine Consumers’ Cooperative, originally called the
Honzan San’yokai), a consumers’ cooperative for the people who
worked at the Ashio Copper Mine. For more than a century, theassociation supported the lifestyles of people living in the Ashio
area; the association however, fulfilled the purposes set out at
its founding, and was dissolved in October 2016. Inspired by thelong history of the San’yokai’s activities in the Ashio area, Ashio
Smelting Co., Ltd. donated theassociation’s remaining assets
to the area in January 2017,
and recently made a second
donation to the city of Nikko.
Plans call for the use of these
donations toward welfare
and healthcare services,
promotion of education,
control of depopulation, andother measures for the Ashio
area.

CSR activities (CSR report)

https://www.furukawakk.co.jp/e/csr/csr_activities/

Left: President Yamazaki of Ashio Smelting Co., Ltd.
Right: Nikko Mayor Kazuo Oshima

35

36

Corporate Information
Company Profile (as of March 31, 2020)

Business Domain

Company Name:
Furukawa Co., Ltd.
Head Office:	Marunouchi Nakadori Building, 2-3,
Marunouchi 2-chome, Chiyoda-ku,
Tokyo 100-8370, Japan
Representative:	Naohisa Miyakawa, President andRepresentative Director
Date of Foundation:
August 1875
Date of Establishment: April 1918
Business:	Machinery business (Industrial
Machinery, Rock Drill Machinery, Unic
Machinery), Materials business (Metals,
Electronics, Chemicals), Real Estatebusiness (Real Estate, etc.)
Capital:¥28,208.18 million
Fiscal Year-end:
March 31
Employees:
2,755 (consolidated)

Financial Data (consolidated)●Net Sales
Industrial
Machinery

Machinery business

Rock Drill
Machinery

0.6%
Industrial Machinery

14.1%
Net sales

40.6%¥165.2 billion

1,617Electronics

Furukawa Unic Corporation0

Chemicals

Furukawa Metals &Resources Co., Ltd.

Electronics
Chemicals

19.2%

Real Estate
OthersReal Estate andOthers

2016

2017

2018

2019

Number of shareholders:●Composition of Shareholders
Securities
companies

1.06 %

Foreign nationals

15.89 %

Other Japanesecompanies

24.42 %

20,533

20

20

81

82

81

2018

2019

2020 (FY)

72
62

0

2016

0

Furukawa Co., Ltd.

2017

2018

47

42

46

1,956

44

2017

2018

2019

2,222 2,153
2,096

800
40

（%）

7.5
795

870

7.5

804

779

682

6.0

400

35

5.9

5.9

200

Equity Ratio

7.0
6.5

600

38.3
36.3 36.002020 (FY)2017(100 millions of yen)

1,000

45

1,000

2016

●Net Assets / Return on Equity (ROE)
（%）

2,080

34.0
2016

0

2020 (FY)●Total Assets/ Equity Ratio

37.3
50

2019

5.8

5.7

5.5

Return on Equity (ROE)

2016

2017

2018

2019

0

30
2020 (FY)

2016

2017

2018

5.0
2020 (FY)2019

Net Sales and Operating Income by Sector●Rock Drill Machinery

3,500
3,500 3,500
23,237
23,237
23,2373,2083,2083,208

2,800 2,8002,800
17,97117,97117,971
15,87115,87115,871
14,92614,92614,926
15,00015,00015,000
2,100 2,100 2,100
14,04114,04114,041
2,0882,0882,088

Number
Stockholdingof shares
ratio (%)
(thousands)

Asahi Mutual Life Insurance Co.

2,373

6.05

The Master Trust Bank of Japan, Ltd. (trust account)

2,146

5.47

Japan Trustee Services Bank, Ltd. (trust account)

1,554

3.96

Seiwa Sogo Tatemono Co., Ltd.

1,503

3.83

10,00010,00010,000

034,00034,000
34,0003,000 3,000 3,000
30,37230,37230,07630,07630,076
30,19930,
19930,
199 30,372
27,663
27,663
27,663
26,97926,979
26,97925,50025,50025,50000002016 20162017 201620172018 201720182019 2018201920202019
2020 2020
(FY)

(FY)

(FY)

●Metals

02,250 2,250 2,250

2,217 2,217 2,217
17,00017,00017,000

1,400 1,400 1,400

5,000
5,000 5,000
1,037
1,037 1,0371,005 1,005 1,005 700 700 700
104 104 104●Unic Machinery(Millions(Millions(Millions(Millions(Millions(Millions
OperatingOperatingOperatingof yen) of yen) of yen)Net Salesof yen) of yen) of yen)
Net Sales
NetIncomeSales IncomeIncome

1,782 1,782 1,782
1,500 1,500 1,500
1,689 1,689 1,689

897 897 897
8,500 8,500 8,500

750 750 750
142 142 142

0

0
0
0
0
2016 20162017 201620172018 201720182019 2018201920202019
2020 2020
(FY)

(FY)

(FY)

●Electronics

0(Millions(Millions(Millions(Millions(Millions(Millions
OperatingOperatingOperatingof yen) of yen) of yen)Net Salesof yen) of yen) of yen)
Net Sales
NetIncomeSales IncomeIncome
35,00035,00035,000
4,900 4,900 4,900(Millions(Millions(Millions(Millions(Millions(Millions
OperatingOperatingOperatingof yen) of yen) of yen)Net Salesof yen) of yen) of yen)
Net Sales
NetIncomeSales IncomeIncome
100,000100,000100,000
3,000 3,000 3,000

31,79131,79131,791
4,200 4,200 4,200
29,23729,23729,237
27,38127,38127,381
27,22927,22927,229
3,992
25,78225,78225,782 3,9923,992
25,00025,00025,000
3,500
3,500 3,500

80,06780,06780,067
77,33477,33477,334
74,19274,19274,192
75,00075,00075,000
2,250 2,250 2,250
67,85367,85367,853 67,14967,14967,149

30,00030,00030,000

2,800 2,8002,800
2,789 2,7892,789
2,627 2,627
2,5782,627
2,5782,578
15,00015,00015,000
2,100 2,100 2,100
2,2952,2952,295
1,400 1,400 1,400

5,000 5,000 5,000

700 700 700

0

0
0
0
0
2016 20162017 201620172018 201720182019 2018201920202019
2020 2020
(FY)

(FY)

50,00050,000
50,0001,738 1,738 1,738

5,6,000 6,000
6,000
5,477
5,4

1,500 1,500 1,500

1,154 1,154 1,154
25,00025,00025,000
750 750 750
867 867 867
301 301 301
581 581 581

0

0

(FY)

0
0
0
0
2016 20162017 201620172018 201720182019 2018201920202019
2020 2020(FY)●Chemicals

8,000 8,0008,000

4,000 4,0004,000

20,00020,00020,000

10,00010,00010,000(Millions(Millions(Millionof yen) of yen) of yen)

(FY)

2,000 2,0002,000
0

0

3.03

25.26

30.34

(FY) (FY) (FY) (FY)(FY) (FY)
1. (FY)The (FY)
company holds 1,229,045 treasury
shares. However, it is excluded from principal
shareholders listed as above.
2. The stockholding ratio is calculated after deducting treasury shares (1,229,045 treasury shares).
3. On April 1, 2020, Sompo Japan Nipponkoa Insurance Inc. changed its trade name to Sompo
Japan Insurance Inc.

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

600 3,6003,600 3,600 3,600
3,3383,338 3,338 3,3383,0003,000 3,000 3,000
3,0743,045
3,074
3,074
3,0743,045
3,0453,045
2,999
2,999 2,9992,999

450 2,7002,700 2,700 2,700

2,2502,250 2,250 2,250
2,3862,3862,3862,386

300 1,8001,800 1,800 1,800

1,500 1,500 1,500 1,500

1,339
1,339 1,339
1,3391,265
1,276 1,276
1,276
1,2651,276
1,265
1,265
1,163 1,163 1,163 1,163
150 900 900 900 900
750 750 750 750
735 735 735 735
0

0

0
0
0
0
0
0
2016 20162017 201620182016
201720192017
2018
20202018
20192020 2020
2017
2018
2019
2020 2019
(FY)

(FY)

(FY)

0

2016 20
2(FY)●Real Estate

TreasuryThe
Yokohama
RubberCompany,
1,341
3.41
3,0003,000 3,000 3,000
25,00025,000 stock 23,237
100,000
3,500
3,500 3,500
34,00034,000 Limited
3,0003,000 3,000 3,000
35,00035,00035,000
4,9004,900 4,900 4,900
8,0008,000 8,000 8,000
3,0003,000 3,000 3,000
8,0008,000 8,000 8,000
600 600 600
25,00025,000
100,000100,000100,000
3,500
34,00034,000
35,00023,237
23,237
23,23730,37230,37230,37230,07630,07630,076
30,07630,19919930,
199 30,372
30,
19930,
6,7106,710 6,710 6,710
3,2083,2083,2083,208%
31,791
6,5276,307
6,527 6,527
31,79131,79131,791
6,5276,307
6,3076,307
30,00030,00030,000
4,200
4,200
4,200
30,0004,200
80,06780,06780,06780,067
27,663
27,663
27,663
27,663
Furukawa Electric Co., Ltd.
877
2.23
6,3446,344
6,1276,344
6,127 6,127
6,1276,344
26,97926,97926,97926,979
5,816
5,816 5,816 5,816
77,33477,33477,33477,334
29,237
29,23729,23729,237
20,0002,8002,800 2,800 2,800
20,00020,00020,000
6,0006,000
6,000
6,000
2,250
2,250 2,250
2,250
5,5065,506
5,506
5,506
74,19274,19274,19274,192
5,9735,973 5,973 5,973
510 510 510 510
5,477
5,4775,477
5,477
27,381
27,38127,38127,381
27,22927,22927,229
27,22975,00075,0002,250
2,250 2,250
25,5002,2502,250 2,250 2,250
6,0006,000 6,000 6,000
450 450 450
75,00075,000
2,250
25,50025,50025,500
3,9923,992
3,992
3,992
25,78225,78225,78225,782
67,14967,149
67,14967,149Individuals 17,97117,97117,97117,971
67,85367,85367,85367,853
25,00025,0003,500
3,500 3,500
25,00025,000
3,500
5,2985,298
4515,298
451 4514515,298
15,87115,87115,87115,871 Fuji Electric Co., Ltd.
862
2.19
2,217 2,217 2,217 2,217
14,926
14,92614,926
14,926andothers
406
406
406
406
15,00015,00015,000
15,0002,100 2,100 2,100 2,100
14,041
14,04114,04114,041
4,0004,000 4,000 4,000
1,500 1,500 1,500 1,500
20,0002,8002,800 2,800 2,800
20,00020,00020,000
2,088
1,7821,782
1,782% 2,0882,0882,088Sompo
50,00050,0001,500 1,500 1,500 1,500
17,00017,0001,500
4,0004,000 4,000 4,000
300 300 300
50,00050,000
17,00017,000Insurance
1,500 1,500 1,500
1,738
Japan
Nipponkoa
Inc.1,782
839
2.13
1,738 1,738 1,738
2,789
2,789
2,789
2,789
1,689
1,689
1,689 1,689
2,6272,627
2,627
2,578
2,5782,578
2,5782,627
15,00015,00015,000
15,0002,100 2,100 2,100 2,100
10,0001,4001,400 1,400 1,400
10,00010,00010,000
2,0002,000 2,000 2,000
750 750 750 750
2,2952,295 2,2952,295
407 330
407 407407 330330 330
Financial
1,154 1,154 1,154 1,154
71310,000
1.81Japan Trustee Services Bank, Ltd. (trust account 5)
10,00010,0001,400
10,0001,400 1,400 1,400
897
897 897 897
1972,000
197 197
25,00025,00025,000
750
750
750
8,500
8,500
8,500
750
750
750
2,0002,000
150 150 150
1972,000
750
25,000
8,500
750
1
7
1
7
1
7
1
7
867
867
867
1,005
1,005
1,005
867
institutions
5,0005,000
5,000
700 700 700 700
1,037
1,037 1,0371,005
1,0375,000
0
0
0
0
0
0
0
0
301 301 301 301
Chuo Real Estate Co., Ltd.
1.75
5,0005,000687
5,000 5,000
700 700 700 700
104 104 104 104
114 114 114 114
581 581 581 581(35) (35) (35) (35)
142 142 142 142%(368) (368) (368) (368)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-750 -750 -750 -750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2016 20162017 201620182016
201720192017
2018
20202018
201920192020 20202016 20162017 201620182016
201720192017
2018
20202018
20192020 20202016 20162017 201620182016
201720192017
2018
20202018
20192020 20202016 20162017 201620182016
201720192017
2018
20202018
20192020 20202016 20162017 201620182016
201720192017
2018
20202018
20192020 20202016 20162017 201620182016
201720192017
2018
20202018
20192020 2020
2017
2018
2019
2020Note:
2017
2018
2019
2020 2019
2017
2018
2019
2020 2019
2017
2018
2019
2020 2019
2017
2018
2019
2020 2019
2017
2018
2019
2020 2019

0(368(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions(Millions
OperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingof yen)of yen) of yen) of yen)Netof yen)of yen) ofof yen)of yen) ofof yen)of yen) ofof yen) ofof yen)of yen) ofof yen)of yen) of
yen)yen) of yen) of yen)of yen) of yen) of yen)Netyen) of yen) of yen)of yen) of yen) of yen)Netyen) of yen) of yen)of yen) of yen) of yen)Netyen) of yen) of yen)of yen) of yen) of yen)Netyen) of yen) of yen)of yen) of yen) of yen)Netyen) of yen) of yen) of yen) of yen) of yen)
(Millions(Millionsof yen) (Millionsof yen) of yen)of yen) (Millions
Sales
NetIncome
Sales
NetIncomeSales Income
IncomeSales
NetIncome
Sales
NetIncomeSales Income
Sales
NetIncome
Sales
NetIncomeSales Income
Sales
NetIncome
Sales
NetIncomeSales Income
Sales
NetIncome
Sales
NetIncomeSales Income
Sales
NetIncome
Sales
NetIncomeSales Income
NetofSalesNetIncome
Sales
NetIncomeSales Income
Net Sales
Net Sales
Net Sales
Net Sales
Net Sales
Net Sales
Net Sales
IncomeIncomeIncomeIncomeIncomeIncome

(FY)

37

40

(100 millions of yen)

20,00020,00020,000

40,445,568

40

30

Furukawa Chemicals Co.,Ltd.

●Principal Shareholders

Number of shares outstanding:

80
60

2,000

25,00025,00025,000

Name

78

3,000

●Industrial Machinery

80,000,000

79

100

86

60

(FY)

Furukawa Denshi Co., Ltd.

Stock Conditions (as of March 31, 2020)

Number of shares authorized:

2020

120

(Millions(Millions(Millions(Millions(Millions(Millions
OperatingOperatingOperatingof yen) of yen) of yen)Net Salesof yen) of yen) of yen)
Net Sales
NetIncomeSales IncomeIncome●Shares89
65(100 millions of yen)

Metals(FY2020)(100 millions of yen)80●Profit Attributable to Owners of
Parent60

Unic Machinery●Ordinary Income(100 millions of yen)

1,000

Furukawa Rock Drill Co., Ltd.

Rock Drill Machinery

16.7%

1,676 1,741 1,652

1,498●Operating Income
100

90Real Estate, etc.

3.3%

Materials business

1.4%

2,000

500

Metals4.1%

Furukawa Industrial
Machinery Systems Co., Ltd.

1,500

Unic Machinery

Departmental Sales Ratio(100 millions of yen)

0

(FY)

38