C S R Report 2019

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 2019

In November 2018, FURUK AWA 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 the spiritof challenge, advancing the technologies that have underpinned the foundation of society thatoriginated 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

FURUKAWA Power & Passion 150“Become a corporate group that leverages its reputation for category
leadership and uniqueness to deliver growth.”- Targeting consolidated annual operating income regularly in excess of ¥15 billion as weapproach our 150th anniversary in fiscal 2025. -Policies for Achieving Vision for 2025
1 Increase the value of the brand throughmarketing-based management*①Develop products and technologies that match market
needs②Reinforce technological sales capabilities (proposals
and solutions) reflecting customer 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 model2 Sustainably expand the Machinery

Business①Reinforce revenue bases in growing overseas markets,mainly in business related to infrastructure andresource 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 shareholders

Marketing-based management: “Marketing-based management” means incorporating marketing into the core of management to provide products and services
recognized as valuable in changing markets, as well as to identify and resolve issues and problems faced by customers, withthe aims of deepening ties with customers, achieving sustained growth, and increasing corporate value.

Amendments to the Charter of Corporate Conduct and Code of Conduct for
Officers and Employees
We amended our Charter of Corporate Conduct and Code of Conduct for Officers and Employees in April 2019. In
consideration of SDGs, we set out provisions for respecting the human rights of all individuals as they relate to our
corporate activities and other matters in addition to the Group’s traditional policies to provide high-quality products andservices and pursue corporate activities that are in harmony with the global environment.

1

CSR Report 2019
■ 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

This report mainly covers results from fiscal 2019 (April 1, 2018 toMarch 31, 2019), but also initiatives from the past as well as somefrom fiscal 2020.
Note that the organization and titles are current as of July 31, 2019.

■ Report Scope

Environmental Data, Environmental Accounting
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 and Semiconductor Material Production Section(Semiconductor Material Plant) of Furukawa Denshi Co., Ltd.;
Osaka Works of Furukawa Chemicals Co., Ltd.;
Ashio Office, Advanced Technology Department, Material
Research & Development Department, and Nitride
Semiconductors Department of Furukawa Co., Ltd.;
Furukawa Castec Co., Ltd.; and Asio Rock Drill Co., Ltd.
Other
Furukawa Co., Ltd. and consolidated subsidiaries■ 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:
35 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 2019 (Next: Scheduled for November 2020)

CONTENTS
3

Interview with President Miyakawa● Special Feature
7

Contributing to Emergency Rehabilitation
After Torrential Rainfall and Other Disasters
Quick Hopper (Large Sandbag Filler)● CSR of the Furukawa Company Group
9

Positioning of CSR in the Furukawa
Company Group’s Business

11

CSR Management

13

Contributing with Business Processes

15

Contributing Through Products andServices● 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

2

Interview with President Miyakawa

To Continue Being a Company
That is Indispensable to Society
Toward the Realization of our Management Philosophy
Based on the Achievement of Our Vision for 2025
Social Role and Mission of the
Furukawa Company GroupThe Group’s role and mission in society is to utilize its
amassed technologies—as well as the technologies
advanced and developed by innovating and combining
them—to resolve today’s social issues.

— What is the Furukawa Company Group’s role andmission in society?
Furukawa Co., Ltd. was established to engage in the business ofcopper mining, and throughout our history, we have continuously
supported the modernization of Japan and achieved growth
together with society while also earnestly tackling social issues.
At the time of our founding in 1875, Japan was in the midstof industrial development, and the copper mining business wasa key industry that influenced Japan’s growth. Amidst thesecircumstances, the company has continuously supported
Japan’s growth by instigating technological innovations throughthe introduction of rock drills and other mining machinery fromoverseas, and by building the Ashio Copper Mine into the nation’slargest in terms of output. Copper mine development was anational policy priority, but the manifestation of pollution problems
forced us to the brink of a shutdown. Our precursors faced theseissues head-on, and developed new pollution controls, by-productrecycling technologies, and other technologies and methods, andworked together with local communities and other stakeholders
toward 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 approach to CSR as a part of our DNA that will neverchange.

— What are your thoughts on the social issues the
Furukawa Company Group faces?

President and Representative Director

Naohisa Miyakawa

3

Climate change, resource depletion, geopolitical risks, and othersocial issues have increased in both complexity and intensity inrecent years, and threaten the global business foundations of
the Group. We understand that the realization of the sustainable
society envisaged in the Sustainable Development Goals (SDGs),
the Paris Agreement, and elsewhere, depends even more now on
the global community collaborating and working together, and on
the Group and other corporations of the world engaging in activities
that leverage their business characteristics and strengths.

These thoughts are not new to the Group; they match theaims of the Group as demonstrated by our history of earnestly
tackling the social issues explained previously. The technologies
and products developed by the Group to date are the foundational
elements of disaster control construction work, infrastructuredevelopment, and new technology development, and our ability toprovide them in response to the present needs of society and themarket is a prime example of our philosophy in action.
In addition, the dizzying pace of change throughout the worldis bringing many innovations from the IoT, AI, big data analysis, andother developments in technology. The Group views these changes
as opportunities for business expansion. The Group has a widearray of businesses and specialized technologies and products, theability to combine technologies and products from different fields tocreate new things, and a pioneering spirit toward new business. In
other words, it can be said that we have developed the capacity torespond to changes in the world and grow continuously.
We will continue to keep a close eye on changes in the world,
keep our precursors’ teachings—that the very survival of ourcompany rests on the bedrock of earnestly tackling social issues
and diligently fulfilling our social responsibilities—at the core ofour business management, and tirelessly seek new challenges tocontinue to be a company that is indispensable to society.

Promoting CSV*1 Management
The Group aims to promote CSV management in order tocontribute to the resolution of society’s and stakeholders’problems through business.

— Where is CSR positioned in the Furukawa Company
Group’s business?
Given the fundamental truth that our daily lives and business cannot
exist without a healthy global environment, it is no exaggeration
to say that businesses that negatively impact the environmentand society and companies that do not contribute enough tothe environment and society will be weeded out. The Group’s
philosophy is to continue to be a company that is indispensable
to society. In other words, the Group aims to promote CSV
management in order to contribute to the resolution of society’s
and stakeholders’ problems through business.
However, it is no simple task to continue to be a company
that resolves the ever-intensifying problems that society faces.
Therefore, we must clarify the fields that should be considered in theGroup’s business processes, fields in which our technologies andproducts can contribute, fields in which we can contribute throughproactive collaboration and cooperation with our stakeholders,and incorporate and systematically promote those fields in ourbusiness plans and CSR activities.

The Group is formulating “CSR2025 Goals” to accompany“FURUKAWA Power & Passion 150,” our Vision for 2025 thatsets out long-term targets for considering whether our intended
course of business is leading us to become a company adapted
for future society. We are also formulating “Three-Year MediumTerm CSR Goals” based on backcasting*2 from 2025. We will
discuss various CSR issues and visualize the progress of activities
to be implemented in an effort to form a PDCA cycle for steady
improvement and to intensify our activities.
To date, the Group has engaged in activities to reduce
environmental impact and improve quality in the value chainthat stretches from development and design to procurement,
manufacturing, distribution, services and waste management,
and also practical efforts to improve working environments andotherwise operate business in consideration of CSR and ESG*3
issues. We intend to continue using these business processes toprovide the world with numerous products and services that help
society and our customers resolve the many problems they face,
thereby contributing to their sustained development.

— What challenges do you face in further promoting
CSV management?
I believe it is important for each and every director and employee
to further their understanding of SDGs and other social issues inorder to steadily execute CSR activities and provide value to society
through business activities. The Group’s products and technologies
are already put to use in many places in our lives, and help actualize
convenient, prosperous lifestyles and safe, secure societies. That
is to say, the Group is contributing to society and the environment
through its core businesses. Each and every member of the Groupshould take this to heart; in order to enhance our awareness of thisfact, we must further the discussion within the Group. Furthermore,
we intend to create more opportunities for education, and establish
a system in which the Group can work together as one toward
issue resolution with a sense of acceptance and purpose.
In addition, so that outside stakeholders appropriately assess
the corporate value of the Group, we must properly convey
information to them about the economic and social value wecreate.
The Group views CSR as applying not only to the category ofsocial responsibility but also to improving the quality of business
management and our businesses’ contribution to society, andintends to promote efforts to achieve SDGs and implement CSV
management to contribute to the resolution of issues.

*1 CSV: Creating Shared Value. The idea that economic value is created when the company creates value for society by taking a leading role in tackling social and otherissues.
*2 Backcasting: Reflecting on where we are now in comparison to established targets for the future, and considering what should be done now to achieve those targets(a method of conceptualization that starts at a point in the future).
*3 ESG: Environmental, Social, and Governance4Interview with President Miyakawa

The entire Furukawa Company Group follows the same
Charter of Corporate Conduct and Code of Conduct for
Officers and Employees, and views efforts toward issue
resolution as the drivers of sustainable growth.

— What is your evaluation of activities in fiscal 2019?
The following are some of the main activities and outcomes of fiscal
2019:
In risk management, we successfully formulated a groupwide business continuity plan (BCP) that reflects revisions to the
BCPs of companies in our core businesses. We intend to urge
our affiliates to formulate BCPs and strengthen their business
continuity management (BCM) systems.
In product safety, in an effort to enhance the quality assurance
system throughout the Group, we introduced a new system
involving quality inspections geared toward improving quality ateach place of business.
In environmental management, we reduced CO2 emissions,the use of water resources, waste, and chemical substances,
and also promoted biodiversity-conscious activities. In safety, we
implemented activities toward Zero Accidents.
Regarding strengthening and expanding our human resourcebases, which are the drivers of continuous growth, we promoted
a management resource development program to enhance thedevelopment of the next generation of human resources tasked withbusiness management. In addition, with the aim of improving laborproductivity and creativity, we reduced overtime work, promoted
the acquisition of paid leave, allowed employees to telecommuteon a trial basis, introduced a discretionary work system, anddevoted energy to other efforts to create work environments thatare healthy and motivating for our diverse human resources.

— What amendments were made to the Charterof Corporate Conduct and Code of Conduct for
Officers and Employees?
As explained previously, we revised and amended the Charter ofCorporate Conduct Charter and Code of Conduct for Officers andEmployees to account for the changes in the business environmentand societal demands. Global perspectives and the pursuit of5

SDGs, CSV and the like were incorporated into the details of
the amendments. In the near future, we plan to create English
versions, followed in due order by Chinese and Thai versions toaccommodate our business locations.
In this age where we more deeply question the value ofcompanies’ existence, we intend to use our new Charter andCode of Conduct throughout the entire Group and to work toward
issue resolution to enhance the Group’s value and contribute to thesustained development of society.

Progress of Medium-TermBusiness Plan 2019
We are working to improve our earning power andimplement various measures centered on the Machinery
business, which is positioned as the core business for“building foundations for renewed growth.”— What is your assessment of performance in fiscal
2019 (the period ending March 31, 2019), the second
year of Medium-Term Business Plan 2019?
In addition, could you tell us about upcoming issues
in the achievement of Medium-Term Business Plan
2019 and Vision for 2025 exist for the three core
Machinery business segments?
The Group is promoting Medium-Term Business Plan 2019, a planfor the three-year period from fiscal 2018 to fiscal 2020 establishedas Phase 1 of bringing to fruition “FURUKAWA Power & Passion
150,” our Vision for 2025. Phase 1 focuses on building foundations
for renewed growth with the Machinery business positioned as thecore business. In fiscal 2019, the second year of Phase 1, sales
and operating income both exceeded the initially planned figures;a simple look at the results shows that the Machinery businessexpanded and performed well.
In the Industrial Machinery segment, we restructured toenhance our engineering capacity to transform us from a simple
equipment manufacturer into a strategic partner for our clients,
and as a result received orders for large-scale projects, including
loading and unloading machinery for the international bulk terminalat the Port of Onahama, and machinery for Interim Storage Facility(Okuma Town, Futaba District, Fukushima Prefecture). This type oftransportation of materials such as earth and sand by belt conveyor
has the potential to reduce CO2 emissions and contribute to theresolution of other social issues; we intend to continue efforts to
win orders for large projects in our contractor business, and to
rigorously manage these projects for resolving issues due to thechallenges of risk assessment when judging projected earnings.
In the Rock Drill Machinery segment, in order to advancethe priority issue of stock business, we intend to promote not
only product sales but also life-cycle support to demonstrate thevalue of our products throughout their lifecycles. Presently, we
are making efforts to establish an operation control system forhydraulic crawler drills. In addition, we began offering maintenanceservices for hydraulic breakers in the Tohoku and Kansai regions.
In the Unic segment, in order to capture stable earnings
and strive to further strengthen competitiveness, we enhanced
the offerings of small to large products in the lineup of our latest“G-FORCE” model series, and began selling mobile cranes

Vision for 2025 (ideal image for 150th anniversary of foundation)
Increase corporate value

Evaluating CSR Activities in Fiscal
2019

Targeting consolidated
annual operating
income regularly inexcess of ¥15 billion

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

Phase

Phase 1

Phase 2Phase 3Time period

FY2018–2020

FY2021–2023

FY2024–2026

Positioning

Building foundations forrenewed growth

Expedite growth andfurther improve profitability

Complete realizationof Vision for 2025

¥8.5 billion range–

Regularly in excess of ¥15 billion

6%-7% range–

More than 10%

Operating
Performance income
indicators
ROE

featuring enhanced safety features based on partially overhauled
structural standards.
As for our development system, our newly restructured
Technology Division will work together closely with Group
companies in an effort to enhance the comprehensive technicalcapacity of the entire Group with flexible thinking that transcends
the fields of machinery and materials.
We set milestone performance indicators of consolidated
operating income in the ¥8.5 billion range and ROE in the 6%-7%
range in Medium-Term Business Plan 2019 for fiscal 2020, the final
year of the plan, and we are progressing beyond them en route toachieving Vision for 2025.

Achieving Vision for 2025
To fulfill stakeholders’ expectations, we aim to embody
our philosophy of continuing to be a company that is
indispensable to society.

— Describe your enthusiasm for achieving Vision for2025.
The central policy for achieving Vision for 2025 is to improve the valueof the Furukawa brand through “marketing-based management.”
The Group’s definition of marketing-based management is all
efforts to understand our customers’ perspectives and provide theproducts and services they truly need, and value that leads to theirsuccess—in other words, “providing new value to customers bysolving their problems.”
Here, “customers” refers to all stakeholders, the people andentities our employees interact with at each workplace, and thecustomers and communities one step beyond that interaction.
For example, in sales and development situations, we obviouslyinteract with customers and society. Internally, we interact with
the individuals, sections, and other groups we work together with.
We aim to constantly interpret things from the perspectives ofthe people we interact with, to use our sensitivity to pick up on
the issues they face as well as latent issues and needs, and toleverage the company’s advantages as well as individual strengths

to provide maximum value. This is exactly the type of marketingbased management the Group should put into practice.
For example, in the Rock Drill Machinery segment, we jointly
develop machinery for tunneling projects, civil engineering projects,
and more with general contractors. If we are working on machinery
for a tunneling project, general contractors want machinery to do
more than simply excavate tunnels; they want to incorporate AI
to amass and pass down the know-how and skills of seasoned
operators. We must remember that social issues—the aging ofoperators and the lack of new workers—are behind these desires.
Additionally, although hydraulic breakers are now widely usedthroughout the world, they are used in completely different ways
in each region. We envisioned that they would normally be used
for roughly eight hours each day, but in the Near and Middle East,
China, and elsewhere, they are being used 24 hours a day, 365 daysa year. This means we must develop more advanced machinery,and manufacture, sell, and provide services for products thatsatisfy customers’ needs.
Traditionally, the Group has excelled at product-out
manufacturing. Going forward, however, we aim to strengthenmarket-in proposals—maintaining a dialogue with customers andseeking ways to resolve their issues—and provide value that leads
to the resolution of customers’ and social issues as illustrated in
Vision for 2025.
I want to make the Furukawa Company Group into anorganization that gives every employee a sense of confidence
and pride. The road ahead may be long, but I believe that every
employee having confidence and pride in their work is exactly whatfuels tireless self-innovation, earns the trust of customers, andresults in appealing products.
This is precisely the way to steadily execute marketing-based
management and progress beyond to achieve Vision for 2025, andI am confident that it will lead to us continuing to be a company thatis indispensable to society.
Looking ahead, we intend to continue fulfilling the expectationsof each and every stakeholder, and growing continuously together
with society.

6Special Feature● Relevant SDGs

Contributing to Emergency Rehabilitation after
Torrential Rainfall and Other Disasters
Quick Hopper (Large Sandbag Filler)
Quick Hopper, a product from Furukawa Company Group Furukawa Industrial Machinery Systems Co., Ltd.,
was added to the list of machinery used for drills, and used in Disaster Control Machinery Operation Drills
conducted by the Kyushu Technology Office of the Kyushu Regional Development Bureau of the Ministry ofLand, Infrastructure, Transport and Tourism on June 5, 2018. Quick Hopper has also contributed to disasterrecovery work in the aftermath of the North Kyushu Torrential Rain Disaster and the West Japan Torrential Rain
Disaster (in areas along the Sunagawa River in Okayama City, and areas along the Odagawa River and theMabi area of Mabicho in Kurashiki City, and the Higashiminari-yakage area in Yakage Town in Oda District, allin Okayama Prefecture), reconstruction projects in Fukushima (Interim Storage Facility), and more.

■ Development Background■ Roles Expected of Quick Hopper

According to the statistics of the Japan Meteorological Agency, annual
precipitation has not fluctuated substantially in recent years, but thefact that the number of days with at least 1.0 mm of precipitation
has decreased while the number of days with at least 100 mm ofprecipitation has increased indicates an increased risk of damage bytorrential rain.
The underlying technology of Quick Hopper was devised after
the collapse of the levees of the Kinugawa River in the torrential raindisaster that struck the Kanto and Tohoku regions in September
2015. The inventor of the technology, who lives near the afflicted
areas, wondered whether there was a way to make large sandbags
more efficiently and quickly, and then developed and patented thetechnology. During the search for a manufacturer to mass-produce thetechnology for use in future torrential rain disaster control measures,the inventor singled out Furukawa, and we improved and harnessed
the technology for mass production.

Quick Hopper was developed for use in emergency rehabilitation
work after disasters, cofferdam work in rivers and on coastlines,
slope protection work for erosion control and roads, and more. Given
that Quick Hopper has the capacity to make more than 200 large
sandbags each day, and the fact that two units supply sufficient
sandbag-making capacity for a single disaster, two or three units
enable a prefectural government to sufficiently implement disaster
control measures. We are working to popularize Quick Hopper, but
not mainly to sell more products—our overarching intent is to createa system that enables municipal governments to lend Quick Hoppers
to each other in emergencies, and to increase our likeability as acompany through awareness of our products in such an environment.
Extreme weather events have become a social issue in thesetimes, and although it is most desirable that torrential rain and otherdisasters cause no flood damage, we intend to contribute to disaster
control measures to minimize any damage that does occur.

■ Quick Hopper Characteristics■

Scenes from Disaster Control Machinery Operation Drills

Gaining Recognition as Machinery for
Disaster Control Measures

The Kyushu Technology Office hosts Disaster Control MachineryOperation Drills on a test field on its property each year for the
purpose of preparing for timely, appropriate disaster support activities
when machinery is mobilized after disasters.
Many earthquakes, torrential rain disasters, typhoons, and otherdisasters occurred throughout 2018, a fact that moved the Japan
Kanji Aptitude Test Association to select the Chinese character “Kanji”
meaning “disaster” as the Character of the Year. The recent spate ofdisasters has spurred further awareness of disaster risk reduction andincreased attention on these drills to the point that newspapers, TV
stations, and other media reported on the drills in June 2018.
Quick Hopper efficiently and successfully created a massive
number of large sandbags for use in slope reconstruction on
temporary levees and roads and other emergency rehabilitation workin the aftermath of the North Kyushu Torrential Rain Disaster thatstruck in July 2017. In recognition of this performance as a piece ofmachinery for disaster control measures, Quick Hopper was includedin this set of drills.

7

Quick Hopper has a faster work speed and lower sandbag production
cost, and requires less workspace than conventional technology.
To date, large sandbags were made by simple pipe systems thatfeatured an assembly of simple pipes. The simple pipe systems
are capable of making roughly sixty-two large sandbags each day;
Quick Hopper has proven that it can make over two-hundred large
sandbags each day. In addition, conventional systems require 100 m2
of workspace to make sandbags safely; in contrast, Quick Hopper
needs only 72 m2 to perform the work safely. Furthermore, Quick
Hopper operation involves work by two operators on the main unit
alongside two backhoes working in tandem. There is absolutely noneed for electric power, motive power (motors, etc.), clean water, gas,or other infrastructure; two backhoes and a Quick Hopper are all ittakes to efficiently make large sandbags on the scene of any disaster,
making this system ideal for urgent reconstruction work in areasafflicted by disasters. Quick Hopper’s hopper rotation mechanism
enables the performance of a series of tasks in succession in an effort
to shorten work schedules, reduce costs, and improve workability
and safety. (To operate Quick Hopper, simply make the ground level,put Quick Hopper in place, and start operating.) Quick Hopper is easy
to transport, and a single unit can be transported by a 4-ton truck
with an onboard crane. (A 10-ton truck can transport up to four units.)
Customers who have used Quick Hopper have commented on
how easy it is to use, and one even reported making 300 sandbags
in one day. These and other reviews show high regard for Quick
Hopper’s safety and workability.

● Work speed (bags/day)Increased
work speed

200● Required workspace (m2)100

Reduced space

72

62

Conventional
technology

Quick Hopper

Conventional
technology

Quick Hopper

Disaster recovery work in the aftermath of the West Japan
Torrential Rain Disaster (areas along the Sunagawa area)

8

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 operationsin the copper mining business in 1875, we have worked constantly at achieving self-innovation by embracing a futureoriented 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 made significant contributions to theadvancement of Japanese industry.
In order to persist as a company that plays an essential role in society going forward, we will contribute to the developmentof 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 2018–2020)Three-step approach to addressing social issues

Corporate
SocialResponsibility

STEP

1

Contribute through business processes

STEP

2

Contribute through products and services

STEP

3

Contribute in partnership with stakeholders

Management
Philosophy

Medium-TermBusiness Plan 2019

Vision for 2025

Management
Plan(Fiscal 2018-2020)

Building foundations
for renewed growth

2030

2025

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

Ideal image for CSR 2025
The Furukawa Company Group will develop
and establish a risk management frameworkthat extends beyond crisis management.
All of our employees will be keenly aware ofcompliance as it applies to the 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 toensure there are no accidents or disasters at
suspended and abandoned mines)
We aim to improve brand strengths of Furukawa
products and achieve top rankings in productcategories.
Our efforts to promote diversification of working
styles making use of diverse human resources
will culminate in 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*1 approach based on
CSR-oriented procurement practices geared toachieving sustainable manufacturing and salesof 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
looking toward 2030, such that help clarify priority global-scaleissues and a worldwide vision related to sustainable
development and are intended to encourage global-scaleinitiatives to address those issues.
The Furukawa Company Group strives to help achieve theSDGs, established by the international community, through its
business activities and efforts geared to fulfilling its corporatesocial responsibilities.

■ Medium-term CSR Goals (Fiscal 2018–2020)
Committee / Department
Risk Management Committee

Medium-term CSR Goals (Fiscal 2018–2020)●

Develop the Group-wide crisis management framework●

Review risk assessments that are premised on Group-wide risk management●

Compliance Committee●

Heighten compliance awareness by disseminating compliance news, conducting various training programs, andmonitoring the extent to which compliance matters are understood●

Disseminate the compliance manual, modify and update its content●

Externally convey the notion that the Group has established a compliance framework

Environment andsafetyReduce environmental impact: improve environmental performance (carbon dioxide, water,
waste, chemical substances)●

Maintain environmental and safety assurances (zero accidents or disasters)●

Protect biodiversity (rehabilitation of ecosystems)●

Suspended andabandoned mines

9

Medium-term CSR Goals (Fiscal 2018–2020)●●

Release results of environmental and safety activities (take action based on ESG investment
trends, SDGs, etc.)
Maintain record of zero accidents or disasters (maintain safety of mine wastewater treatment
facilities, implement controls to ensure safety of waste dumping sites and underground mines)

Improve product quality(1) Development of common guidelines: Index and establish common rules for product quality targets, reduce and strive forzero product complaints(2) Design quality: Promote design review (DR) and design FMEA*2 approaches(3) Manufacturing quality: Step up operation of quality control systems, implement more stringent criteria for process
handover(4) Quality of our overseas products: Maintain quality controls with respect to overseas procurement and overseas plants(5) Service quality: Collect and provide necessary information, offer consulting-type services

Product Safety Committee

Prepare international versions of the Charter of Corporate Conduct and the Code of Conduct for Officers andEmployees (English, Chinese and Thai languages)●

Environment & Safety
Management Committee

Committee / Department●

Improve safety(1) Establish system for providing safe products

Human Resources & General
Affairs Department

Develop human resources
Promote work-life balance● Promote diversity●●

Improve accuracy of CSR surveys administered to suppliers: Review and implement follow-up measures
Deploy in-house training regarding CSR procurement at other business sites, and administer questionnairebased surveys regarding CSR● Provide guidance to promote CSR procurement among suppliers● Develop a comprehensive supplier evaluation program (QCD + CSR)
● Boost CSR procurement skills of Purchasing Department employees●●

Purchasing Department*1 QCD: Quality, cost, and delivery*2 FMEA (Failure Mode and Effects Analysis): A systematic analytical method for preventing problems by predicting factors of quality problems in the design andprocess planning phases

10CSR of the Furukawa Company GroupCSR Management
The Furukawa Company Group promotes corporate social responsibility (CSR), while reinforcing its governance frameworkand compliance practices, with respect to its business activities such that have involved full-scale manufacturing andstructural development carried out thus far, as well as various other activities particularly involving environmental protection,social contribution, and human resource development.

■ Framework for Promoting CSR
At the Furukawa Company Group, we actively engage in CSR initiatives, particularly through efforts that have involved establishing the CSR
Promotion Meeting at Furukawa Co., Ltd. in order to vigorously promote such endeavors, clarifying our responsibilities to stakeholders, andidentifying 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, particularly withrespect to formulating fundamental policies, promotion frameworks and action plans, verifying and evaluating the status of initiatives, and planningpriority 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 coordination
with respective Group companies and respective Company departments, which take on the function of executing CSR initiatives.

Reporting

CSR Promotion Department(Secretariat)

Committee / Department

Interaction

Risk Management
Committee
Compliance
Committee

Human Resources &General Affairs Department

Environmental & Safety
Management Committee

Purchasing
Department

Product Safety
Committee

Guidance /instruction

Reporting

Implementation body
Plan

Formulate the planDo

Execute the plan

Check Check the outcome
Action Take countermeasures
as necessary■ Relationships with Stakeholders

Stakeholders

Responsibilities

Stakeholders

Responsibilities

Customers

We shall provide customers with safe, high-quality
products and services in order to increase satisfactionlevels.

Employees

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

Business
partners

We shall build and maintain mutually beneficial
relationships conducive to harmonious coexistence
through stable procurement activities based on theprinciples of fairness and economic rationality.

Local
communities

We shall build and maintain favorable relationships oftrust by pursuing social contribution activities aimed atharmonious coexistence with local communities.

Globalenvironment

We shall protect biodiversity by developing
environmentally friendly technologies and products
while minimizing the environmental impact of ouractivities through savings of energy and resources
and reduction of waste.

11

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

Steps to identifying
priority issues

Extract issues

Page

Developing a robust corporate governance framework

P17

Enhancing compliance

P20

Providing products and services that engender customer
satisfaction

P21

Promoting environmental conservation initiatives

P23

Creating pleasant work environments for employees withfair performance evaluations and incentives

P29

Building fair and impartial business relationships andreciprocal trust with suppliers

P33

Promoting activities that contribute to society

P35

Communicating with shareholders and investors

P36

Analyze theimportanceof issues

Evaluate importanceto stakeholders andthe Group

Decide andapprove priority
issues■ Fiscal 2020 Targets for Respective Committees and Relevant Departments
Risk
Management ❷ Continue to overhaul BCPs
Committee
Examine countermeasures for crises other than❸earthquakes
Prepare English, Chinese and Thai language versions❶ of the Charter of Corporate Conduct and the Code of
Conduct for Officers and Employees

Compliance
Committee

Product
SafetyCommittee❶

Implement the FMEA approach with respect to risk
assessment (product development) and design❷

Reduce risks associated with overseas procurement(respective machinery companies)❸

Streamline collection of data from inspections andtrials (respective machinery companies)❹

Enable visual monitoring of change points (respective
machinery companies)

Increase opportunities for taking part in compliance❷training

Take steps to eliminate risk at the stage of❺ development and design (respective machinerycompanies)❸ Revise the compliance manual❻❹ Adopt compliance checking in 2020

In the course of strengthening our CSR activities and implementing our Management Philosophy, we have identified our stakeholders as follows:customers, business partners, shareholders and investors, employees, local communities, and the global environment. Moreover, we aim 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.

Shareholders
and investors

The Group identifies important issues and reinforces its CSR activities
to ensure that its business activities contribute to society in the
broader sense.
To identify CSR priority issues, we selected important CSR-related
issues from the perspectives of both stakeholders and the Group,
then analyzed and evaluated the importance of those issues andfinalized the Group’s CSR priority issues.
The pages of the Activity Report detailing our CSR activities provide
information on priority issues regarding the Furukawa Company
Group’s CSR.

Priority issues regarding CSR❶ Improve response capabilities in event of a crisis

Reports at each PDCA stage

Guidance /instruction

Group companies / departments

CSR Promotion Meeting

President and Representative Director

CSR Promotion System■ Identifying Priority Issues❶

Promote ongoing efforts to improve
environmental performance (carbon
dioxide, water, waste, chemical
substances)

Improve on-site strengths in partnership
Activities❷
with respective business locations
involvingenvironmental ❸ Enhance preventative measuresthrough analysis of various datasets
conservation,
Enhance understanding and practices
health,andEnvironment❹
regarding various laws and requirements
safety.
& Safety
Perform environment and safety audits
Management❺
instrumental to daily operations
Committee
Promote specific initiatives for reducing❻
environmental risk
Improve on-site strengths by imparting❶knowledge and skills

Monitorsuspended or
Maintain mine wastewater treatment❷
facilities
abandonedmines
Service final disposal sites and❸underground mines

Engage in initiatives involving quality assurance
frameworks (respective materials companies)❶ Develop human resources● Introduce new employee programs● Consider revisions to the personnel evaluation system● Review possibility of extending the retirement age❷ Promote work-life balance
Human● Implement telework options
Resources● Expand application of the flextime system& General❸ Promote diversity
Affairs● Actively employ women in career-track positions
Department(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.)❶

Further improve precision of CSR surveys administered
to major suppliers❷

Conduct interviews of suppliers tailored to their specificcircumstances regarding CSR activities

Purchasing
Enhance management of major suppliers
Department ❸ (QCD + CSR)
❹ Foster partnerships with suppliers❺Continue Group-wide CSR-oriented procurement
activities

12

CSR of the Furukawa Company Group

Contributing with Business Processes
The Furukawa Company Group is working on CSR issues in each process in the value chain in order to strengthen thepositive impact and minimize the negative impact of our business activities. To work toward achieving the SDGs, we plan
to clarify areas of the Group’s business processes that deserve attention, including areas in which our technologies andproducts can contribute, and areas in which we can contribute through proactive collaboration and cooperation with our
stakeholders. We plan to incorporate those areas in our business plans and CSR activities.

■ The Group’s Initiatives and Relevant SDGs
Business Processes

Main activities[Overall business processes]● Ensure rigorous compliance● Promote diversity● Promote work-life balance● Assure occupational health andsafety● Promote employee healthmanagement

Introducing the main initiatives
for each business process

Development and Design● Development and design of products that

● Promoting CSR-oriented procurementtake environment, safety, and quality into
consideration● Confirmation of design review (DR)implementation status● Training of FMEA*1 leadersactivities● Providing technical guidance to suppliers● Pursuing QCD*2 based on CSR-oriented
procurement*1 FMEA: Abbreviation for Failure Mode andEffects Analysis. A systematic analysis methodthat predicts the causes of quality problems
and prevents them at the design and processplanning stage.

*2 QCD: Abbreviation for quality (Q), cost (C), anddelivery (D)Working to develop more ecofriendly crushers

Fostering deeper partnerships
with our suppliers

The Design Section of Furukawa Industrial
Machinery Systems Co., Ltd. developed
GEOPUS C3, a new cone crusher, after
performing FMEA and DR to evaluate risks
in examples of defects, design changes,
and safety and environmental aspects. With
cooperation from the parties concerned,
we conducted proving tests and assessed
the results, successfully improved theresource recovery rate and reduced theweight to enhance durability, and, on theenvironmental front, equipped the machinerywith the capacity to substantially control thedust created by crushing.

As a member of the Furukawa Company
Group, the Purchasing Department of
Furukawa Unic Corporation promotes
initiatives to improve the quality, cost, anddelivery of suppliers as well as initiatives forhuman rights and labor, legal complianceand corporate ethics, safety and health,environmental conservation, and morethroughout the entire supply chain on thebasis of interactive cooperation. Throughthese initiatives, we aim to foster deeper
partnerships with our suppliers.

Koji Tsukada
Senior Engineer, Design Section, Technical Department,
Material Machinery Division,
Furukawa Industrial Machinery Systems Co., Ltd.

13

Procurement

Osamu Yaita
Deputy General Manager, Purchasing Department,
Sakura Works, Manufacturing Division,
Furukawa Unic Corporation

Manufacturing

Sales and Service● Ensuring quality and safety● Improving follow-up services● Ensuring stable supply of products● Pursuing customer satisfaction● Promoting global warming● Producing quality assurance guidelines

countermeasures and energy
conservation measures associated withbusiness activities● Strengthening the safety management
system of chemical substances● Pursuing activities aimed at reducing
equipment, environmental, andoccupational accidents

Working on measures to improve
sulfuric acid quality and prevent
accidents and disasters

Disposal● Reducing total emissions (including

waste) and promoting conversion
into valuable resources● Disseminating information on eco-friendly

products● Promoting efficient transportation systems● Conducting risk assessment of products toensure customer safety

Holding product briefings toencourage safer use

Reducing total emissions(including waste) and/or
converting into valuable resources

In the past, we used cast-iron coolingequipment in the sulfuric acid manufacturing
process, which involved the risks of quality
degradation due to corrosion, and shutdown
due to sulfuric acid leaks. We updated tomore corrosion-resistant nickel alloy coolingequipment in a three-year process, startingin 2014, and successfully achieved our aims
of improving quality and safety-oriented
operations. Our improved quality also
expanded our product lineup, enabling us tomeet a wider range of customer needs.

The Ministry of Health, Labour and Welfare
issued an announcement partially amending
structural standards for mobile cranes that
requires the installation of safety equipment
on trucks with onboard cranes. In light of the
new requirement, the Service Department of
Furukawa Unic Corporation hosted lectures
to explain the changes in new productinspection methods in detail to mounting
factories and maintenance shops throughout
Japan. We are making efforts to improve
follow-up services so that our customers
can use our products more safely and with agreater sense of security.

Kenji Takatani

Yasutaka Yamada

Atsushi Yoshida

Senior Engineer and Manager of Sulfuric Acid Group,
Manufacturing Section, Osaka Works,
Furukawa Chemicals Co., Ltd.

Manager, Engineering Service Section, Service Department,
Sales Division, Furukawa Unic Corporation

Chief Engineer, Production Engineering Department,
Takasaki Yoshii Works, Manufacturing Division,
Furukawa Rock Drill Co., Ltd.

The Takasaki Yoshii Works of Furukawa Rock
Drill Co., Ltd. is making efforts to reduce
waste by promoting initiatives to transition to
special reusable containers for the deliveryof parts and the like from affiliate plants.
We are also working to reduce waste using
dedicated machinery to reduce the volume
of sludge generated in the polishing process,and promoting the conversion of waste into
valuable resources.

14

CSR of the Furukawa Company Group

Contributing through Products andServices
A closer look at everyday life reveals the Furukawa Company 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 andprosperous, and protecting the safety and security of society.

■ UNIC cranes
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
from plants and other facilities.

equipment at
wastewater treatment facilities■ Pumping
We have a wealth of experience with thisequipment at wastewater treatment plants
and water treatment plants throughout
Japan.

■ Mini-crawler cranes

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
and vertically transport materials.

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

(Newly developed product)

precipitators fortunnel construction■ Electrostatic■ High-purity metallic arsenic
This high-purity metallic arsenic is used
as a raw material for mobile equipment
and lasers.

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

15

These machines drill holes for blastingat stone-crushing plants and limestone
mines.

■ Crushers

Outside Japan, these cranes are usedon construction sites for skyscrapers
and the like.

■ Cuprous oxide■ Hydraulic crawler drills

This equipment captures dust from the air
in tunnel construction sites.

bridges and steel
structures■ SteelWe construct pedestrian bridges,
motorways, and more.

■ UNIC carriers
Trucks that carry new cars and damaged
cars.

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

■ Ocean cranes
These machines are used in oyster
farming and unloading catches fromvessels.

16

● Relevant SDGs

Governance and Management

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 GovernanceOutside Directors and Outside Audit & Supervisory
Board Members

お客さまとの関わり■ Basic Approach

Executive Officer System
Executive officers環境への取り組み
perform their tasks according to business plans
determined by the Board of Directors, and report the status ofbusiness execution as appropriate to the Board of Directors and theManagement Committee.
The Company has 16 executive officers as
従業員との関わりof June 27, 2019, including four concurrently serving as directors.

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 consistent profits, and contributing
to its shareholders and stakeholders.

Management取引先との関わり
Council and Management Committee
The Management Council sets the Group’s fundamental management
policies and strategies, and makes decisions on important matters.
Meanwhile, the Management
Committee meets monthly to report
株主・投資家との関わり
on the business execution of the Company and its core operatingcompanies, and accordingly reviews such matters and provides
direction in that regard. Key managerial issues addressed by the
地域社会との関わり
Management Council are subsequently referred to the Board of
Directors.

■ Corporate Governance System
The Furukawa Company Group’s operating holding company
Furukawa Co., Ltd. has established the Board of Directors and the
Audit & Supervisory Board to supervise and audit business execution.
The Company also employs an executive officer system whichfacilitates quicker decision making and defined responsibilities interms of keeping management supervisory functions separate frombusiness executive functions.

Audit & Supervisory Board

Directors and Board of Directors

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, supervise business sites
and subsidiaries, and audit business execution by directors. The Audit& Supervisory Board consists of four members, including two outside
members, and meets as appropriate.

The Board of Directors holds regular meetings once a month, andextraordinary meetings as necessary, to supervise the Group’s overallbusiness execution. The Board consists of nine members as of June27, 2019, including three outside directors.

Shareholders’ Meeting
Elects

Accounting Auditors

Reports

Board of Directors

AuditsReports

ElectsAudit & Supervisory Board

Supervise

Representative Director
Reports

Reports Directs

Exchanges
opinions /information

Supervise

Management Council

Reports Reports Audits Audits Reports

Management Committee

AuditsReports

Directs

Executive Officers

Internal Control DivisionInternal Audit Department

CSR Promotion Meeting

Business execution

Accounting Dept., others
AuditsReports

All Divisions and Group Companies

Nomination & Remuneration Committee
In November 2018, the Company established the Nomination &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 mattersrelating to personnel affairs and remuneration 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■ 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 toensuring efficient and appropriate business execution. Moreover,the Group continually reassesses its internal control systems andotherwise strives to build effective and efficient systems in order toensure the appropriateness of operations.

Message from outside independent director
Two years have passed since I assumed office as an outside independent director. In the meantime, I have been working as a member ofthe Board of Directors from the perspective of a stakeholder representative. I am particularly aware of my role in checking to ensure that theBoard of Directors is functioning soundly and the Company is practicing appropriate corporate governance.
Our Board of Directors engages in discussion until a sufficient mutual understanding between officers is reached, giving courteous andpolite explanations to address doubts and questions without impeding the speed of decision-making. In some cases, the Board meets on
multiple occasions to ensure proper discussion. I applaud the fact that this is being practiced effectively as a matter of course.

● Corporate Governance Structure

ElectsWith 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 27, 2019,
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.

and Audit & Supervisory Board Members, and exchanges opinionswith outside officers. The results of these activities are reported to theBoard of Directors for discussion.
In fiscal 2019, we noticed an overall improvement trend comparedwith fiscal 2018. To achieve further improvement, we confirmed
the need for action in several areas. These include stepped-up
exchanges of opinions about information dissemination aimed at
improving shareholder value, enhancing reports on human resource
development, compliance, new products and technologies, and fuller
discussion about medium-term business plans.
Going forward, we will further heighten the Board’s effectivenessthrough efforts to stimulate Board discussions by providing it withtimely information.

AuditsThe Company is focusing heavily on the Machinery business. We have steadily improved
machine design, manufacturing, and inspection technologies, expanded and refined our lineup,and broadened our domestic and overseas sales networks and alliances. The Machinery businesshas thus grown into a core part of our operations, which I believe is the result of the preparedness
and efforts of past and present management. Leveraging this amassed infrastructure, the Grouphas been united in its quest to achieve the challenging revenue targets of its long-term vision,
which ends in fiscal 2026. Achieving these targets will be major turning point for our future. To
reach a new dimension, however, we need to strengthen our sales capabilities in the Machinery
business. This, in turn, requires us to address two enduring and urgent priorities: expand ouroverseas bases and develop human resources who can perform internationally.
When I was president of my first company, I navigated the business through tumultuous times
that included the global financial crisis, Great East Japan Earthquake, and China shock. I believe
this experience was one of the reasons I was invited to become an outside independent director.
I will utilize this experience, as well as my knowledge on resources and smelting, to serve asa representative of stakeholders. At times, I may need to push the executive team and makethem consider differing opinions, but I am committed to helping the Group achieve sustainable
development while paying close attention to the soundness of corporate governance.

Tatsuya Tejima
Outside Independent Director

Further information on corporate governancehttps://www.furukawakk.co.jp/e/ir/policy/governance.html
1718

● Relevant SDGs

● Relevant SDGs

Risk Management

Compliance

Ideal image for 2025

Ideal image for 2025

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

Fiscal 2019 targets and assessments

Fiscal 2020 targets

Achievement

Improve response capabilities in the event of a crisis. ★★★

★★★

Draw up a Group-wide BCP
Examine countermeasures for crises other thanearthquakes

All of our employees are keenly aware of compliance as it applies to the international community.

Fiscal 2019 targets and assessments

Fiscal 2020 targets

Improve response capabilities in event of a crisis

Upgrade and expand compliance training★★★

Upgrade and expand compliance training

Continue to overhaul BCP

Revise the Charter of Corporate Conduct and theCode of Conduct for Officers and Employees★★★

Prepare English, Chinese and Thai language versionsof the Charter of Corporate Conduct and the Code of
Conduct for Officers and Employees

Examine countermeasures for crises other thanearthquakes★

Achievement

Revise the compliance manual★★★Target achieved; ★★Target partially achieved; ★Target not achieved★

Revise the compliance manual★★★Target achieved; ★★Target partially achieved; ★Target not achieved

Furukawa Co., Ltd.
(Secretariat of Risk
Management Committee)

Business Risk Review
Sectional Meeting*

Furukawa Co., Ltd.
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
Meeting are the same as those represented in the Risk Management
Committee.

■ Strengthening Crisis Response
Improving Initial Response Capabilities
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. In conducting the safety conformation drills infiscal 2019 we achieved a success rate exceeding 80% relative to
our initial objectives. Meanwhile, we have placed transceivers at eachof our primary business sites, and have been reviewing lists of food,beverages and other stockpiled items, and overhauling our approachto managing such items.

19

Secretariat of headquarters for BCP

Headquarters for BCP

General Affairs Team
Human Resources Team
Public Relations Team
Finance Team
Information Analysis Team

Headquarters in an Emergencyof each company

Risk Management Committee● Group BCP System

Chief Secretariat of headquarters for BCP● Risk Management System

We have finished our BCP reviews of core operating companies.
Going forward, we will formulate BCP strategies at consolidated
affiliates and step up BCM activities.

Committee Members of headquarters for BCP

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.

Shifting from Business Continuity Planning (BCP) to
Business Continuity Management (BCM)

Vice Director-generals of headquarters for BCP

Framework for Promoting Risk
Management

Director-generals of headquarters for BCP■[Comment from the Responsible Committee]
Overview of Fiscal 2019
In fiscal 2019, we finished drawing up the Group’s BCP
per review of the BCPs of our core operating companies.
Moreover, we achieved our success rate target in carrying out
safety conformation drills, butwere unable to carry out BCP
drills. As such, we will make plans
to promptly carry out such drills,
while also working to improve
our ability to take action whena crisis strikes through initiatives
that involve embarking on efforts
to draw up business continuity
plans for our consolidated
affiliates and considering plansof action to address crises otherthan earthquakes, in order toAtsushi Takano
enhance our crisis management
Risk Management Committee
frameworkthroughout
the Chairperson, Senior Executive Officer,
General Manager, Human Resources &Furukawa Company Group.
General Affairs Department,■ Promoting Compliance■ Internal Reporting System

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

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 andpersonal 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 byposting such content to our in-house portal site and distributing
brochures to Group officers and employees.

■ Compliance Education
We strive to instill a corporate culture that emphasizes compliancethrough efforts that include issuing our “Compliance News” source of
information on compliance to all Group officers and employees, andhaving top management occasionally give talks on the importanceand priority we place on compliance.
In fiscal 2019, we held compliance training sessions as part ofour employment hierarchy-specific training for newly hired, midlevel employees, and newly assigned managers, and also held acompliance training session for officers and other top management
personnel. In addition, we held training on specific topics, such as
Japan’s Act against Delay in Payment of Subcontract Proceeds, Etc.
to Subcontractors (the “Subcontract Act”).
● Training Implemented in Fiscal 2019
Training

Number of participants(number of sessions)

Compliance training

242 (12)Training on the Subcontract Act

40 (2)

Training on contract fundamentals and basic
transaction agreements

79 (3)

Training on security export controls

8 (1)[Comment from the Responsible Committee]
Overview of Fiscal 2019
In fiscal 2019, we drew up our new Charter of Corporate
Conduct and Code of Conduct for Officers and Employees,
formulated from the perspective of the SDGs and releasedin April 2019. In fiscal 2020, we will disseminate our officers
and employees with the revised versions of our Charter ofCorporate Conduct and Code of Conduct for Officers andEmployees, and will furthermore
prepare versions in the English,
Chinese and Thai languages
for our officers and employees
overseas.
We
have
also
embarked on the task at handof revising our compliancemanual beginning in fiscal 2019.
We will continue to promote
initiatives underpinned by ourgoal of equipping every one of
our officers and employees witha keen awareness regarding
Takeshi Miyajima
compliance as it applies to the Compliance Committee Chairperson,
Senior Executive Officer,
international community.
General Manager, Legal Department

20

コンプライアンスの強化● Relevant SDGs

Customer Relations

お客さまとの関わり

環境への取り組み

Ideal image for 2025

[Comment from the Responsible Committee] Overview of Fiscal 2019

We aim to improve brand strengths of Furukawa従業員との関わり
products and achieve top rankings in product categories.

Fiscal 2019 targets and assessments

Outcome

取引先との関わり

Take steps to eliminate risk at the stage of development anddesign (respective machinery companies)

Our Product Safety Committee engages in various initiatives to ensure that our products are safe and satisfactorywith respect to all products manufactured by the Furukawa Company Group and delivered to our customers.
We accordingly aim to guarantee that the quality of our products for overseas procurement, production andfactories overseas, and export embody the pride of Japanese manufacturers.
In fiscal 2019, we checked multiple aspects of our prevailing systems in order to strengthen our quality
assurance system at respective business sites, and otherwise in Japan we laterally adopted new systems
associated with quality inspections conducted to improve quality.
In fiscal 2020, we will strengthen our quality assurance system. In addition to taking on tasks as yet
unachieved from the previous fiscal year, this will involve further promoting change point controls that arefocused on the main causes of complaints and engaging in activities to reduce risk associated with the initial
phase business processes.

Engage in initiatives involving quality assurance frameworks(respective materials companies)

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

Implement the FMEA*1 approach with respect to risk
assessment (product development) and design★★

Reduce risks associated with overseas procurement(respective machinery companies)★★株主・投資家との関わり(respective machinery companies)

Implement the FMEA approach with respect to risk
assessment (product development) and design

Streamline collection of data from inspections and trials(respective machinery companies)★★★

Streamline collection of data from inspections and trials(respective machinery companies)

Engage in initiatives involving quality assurance
frameworks (respective materials companies)★★地域社会との関わり

Enable visual monitoring of change points (respective
machinery companies)

Reduce risks associated with overseas procurement★★★Target achieved; ★★Target partially achieved; ★Target not achieved■ Product Safety Management System■ Session Initiatives

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.
The Product Safety Council are held with the aim of improving
Group-wide product safety and evaluating initiatives related to
product safety. The council underpin efforts firstly geared to improving
product reliability with the aim of heightening product safety levels. In
fiscal 2019, they involved ongoing efforts carried over from fiscal 2018with respect to confirming progress of risk assessment initiatives fromthe perspective of preemptive risk prevention.
Moreover, in the sessions, which consist of members capable ofdiscussing matters from the standpoint of on-site operations, we took
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 and other divisions apart from quality
control.

Machinery Session● Product Safety Management System

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

Technological
Strategy
Department(Secretariat)

Core operating companies
Machinery Session
Furukawa Industrial Machinery
Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Unic Corporation

21

Fiscal 2020 targets

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

Quality assurance encompassing all products for the sake of our customers

The Machinery Session has been taking steps geared to the key tasksof reducing complaints, monitoring production change points, andcurbing risk that arises during procurement, premised on the concept
of “making products that satisfy our customers.”
The session has been placing its focus on change points interms of factors primarily attributable to complaints, particularly withrespect to modifications involving design, manufacturing methods
and processes. In so doing, the session has been attempting to bringabout consistent approaches among our business sites throughoperations that involve visually monitoring change points in productdevelopment and at assembly locations.
Given that incorrect dimensions constitute many of our component
defects, we have been addressing such issues by improving analytic
accuracy and increasing inspection speed. In that regard, we havebeen using coordinate measuring machines, optical emission
spectrometers and other precision measuring devices with respect tocomplex-shaped parts that take time to measure and parts that are
difficult to gauge.
We have also been turning to complaint-data applications, resulting
in faster searches of complaints and swifter use of data in analyzing
root causes, preventing recurrence, and preparing risk assessment
materials for subsequent product development.
Going forward, the session plans to improve the quality andefficiency of inspection by having inspections carried out using tablet
devices.
The Machinery Session and the three core operating companies
in the machinery segment will engage in joint training activities withthe aim of developing consistent skills at each level of the employee
hierarchy.
In so doing, we aim to develop our brand such that everyone
associates it with the notion that achieving fewer complaints resultsin customer satisfaction, through efforts to enhance our on-sitestrengths extending from product development to manufacturinglocations.

Materials Session
Based on a customer-oriented approach, the Materials Session
takes steps to improve our quality assurance system encompassing*1

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

*2

SDS: Abbreviation for Safety Data Sheet

Tatsuki Nazuka

components procured overseas with the goal of achieving zero
market complaints, with respect to materials that are widely used inelectronic devices and other products.
Our risk assessment efforts involving materials has entailed
providing SDS*2 and other forms of risk data, while also taking action
to keep defective products from being released. To such ends, wehave been working to achieve highly reliable design and automating
inspections by implementing an FMEA approach focused on oversightof change points, given the substantial risks that would materialize
TOPICS

should we release defective products. The Materials Session
accordingly engages in activities to heighten skills at the respective
companies, which involves sharing such information.
As a result of such efforts, we achieved zero market complaints infiscal 2019. Likewise, we aim to achieve zero market complaints again
in fiscal 2020, and will accordingly take steps that involve designinghighly reliable products, preventing the release of defective products,
and improving our quality assurance framework which includes
products procured overseas.

Initiatives of Group Companies
Development of drill simulator by Furukawa Rock Drill Co., Ltd.
Furukawa Rock Drill Co., Ltd. and the Advanced Technology Department of Furukawa Co., Ltd.’s Technology Division jointly developed
a drill simulator that acts as a tool for enabling operators to develop greater proficiency in handling our blast hole drills, which is ourmainstay product that includes hydraulic crawler drills and hydraulic down-the-hole drills. The drill simulator utilizes VR technology witha head-mounted display to provide a realistic portrayal of drilling, thereby enabling users to experience simulated drilling operations
amid a sensation of actually sitting in the cab of a blast hole drill. Blast hole drill operations differ greatly from operations of otherconstruction machines that mainly handle loads, particularly because blast hole drills call for special operating techniques, and they are
subject to limitations with respect to where and when they may be used for actual drilling. As such, we hope to see our drill simulator
being put to use as a tool for facilitating communications with operators.

Image displayed on the blast hole drill simulator screen

Hands-on demonstration at the 2019 Construction & Survey
Productivity Improvement EXPO (CSPI-EXPO)

22

お客さまとの関わり● Relevant SDGs

Environmental Efforts
Ideal image for 2025

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
取引先との関わりno accidents or disasters at suspended
and abandoned mines)■ Basic Approachcovering a 10-year period from fiscal 2020. These take account of
株主・投資家との関わり
the outcomes of the Third Medium-term Reduction Targets covering
the period from fiscal 2015 to fiscal 2019 and are based on our Vision
Based on its Charter of Corporate Conduct and Basic Environmental
for 2025.
Management Principle, the Furukawa Company Group works to
In continuing our environmental conservation activities, we are
reduce environmental risks and harmonize its business activities 地域社会との関わり
implementing preventative measures while enhancing and reinforcing
to the global environment, and it is determined to contribute to the
responses to risks.
realization of a sustainable society.
Furthermore, our business activities are conducted with
With respect to measures against global warming, the Group is
consideration to their impacts on the environment and the aim ofcurrently formulating its Fourth Medium-term Reduction Targets
protecting biodiversity.

● Key Environmental and Safety Targets and Results (Fiscal 2019)[Comment from the Responsible Committee] Overview of Fiscal 2019

Practicing Environmental Conservation through Our Overall Business
Activities
To help build a sustainable society, the Furukawa Company Group works to improve our production facilities
and make our operations more efficient. We moreover practice environmental conservation that is mindful ofthe impact our business activities as a whole have on the global environment and biodiversity. This includes theentire span of activities from product planning and development to use, consumption, and disposal. In fiscal
2019, we introduced a new system for aggregating environmental data. With this system, we can get prompt
activity updates from our plants and other sites. Also in fiscal 2019, we promoted environmental conservation
activities based on our medium-term reduction plan and worked to reduce environmental impacts.
Looking to fiscal 2020 and beyond, we continue to focus our efforts on environmental conservation activities
to achieve our Vision for 2025. We will work on reducing environmental risk and harmonizing our businessactivities to the global environment.

Masayuki Kuno★★★Target achieved; ★★Target partially achieved; ★Target not achieved

Key fiscal 2019 targets

Fiscal 2019 results

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

Achievement

Operation and promotion of effective environmental management systems by each Group company● Promoting continuous improvement of operations in accordance with the● Improvement processes were checked in environment and safety audits, and guidance was provided concerning● Properly responding to the establishment and amendment of environment-● Information on environmental laws and ordinances was communicated timely and promptly and disseminatedrevised EMS standard

related laws and ordinances● Enhancing responses to demands from inside and outside the Group● Promoting preventative measures through effective use of environmentrelated data

problems identified, if any

horizontally● During environment and safety audits, items to be complied with (e.g., environmental laws and ordinances) wereclarified and the unit’s response to them was checked● Environmental measurement results were analyzed and initiatives were taken to reduce risks★★★

Promotion of continuous improvement for the reduction of environmental impact● Reducing greenhouse gas emissions (by improving efficiency of production

facilities and manufacturing processes, etc.)● Reducing the use of water resources (including promoting the reduction of
impacts on aquatic environments)● Reducing total emissions including waste and converting waste into valuables● Reducing the volume of emissions of chemical substances to the atmosphere● We increased productivity and implemented energy-saving devices, but did not achieve our reduction target● We took measures to save and reuse water in each plant and visualize water consumption, but did not achieve our

reduction target● We improved our product packaging methods, promoted use of reusable shipping cartons, and the like, but did notachieve our reduction target★

● We improved our methods of spraying on coatings and preventing volatilization, but did not achieve our reduction target

Promoting biodiversity protection activities● Promoting research on measures for reducing the environmental impact on

biodiversity● Promoting continuous tree-planting, forest management, and biodiversity
restoration activities● Created list of people- and eco-friendly products, researched ecological pyramid of organisms living in Ashio area,

and other activities● Continued tree-planting, including various planting parties, promoted management of forests owned by theCompany, worked to revive fireflies★★★

Enhancement of preventative measures to realize zero disasters● Enhancing the environmental and safety management system● Enhancing education to improve the capabilities of personnel responsible forthe environment and safety● Reducing the number of facility and environmental accidents, setting thetarget at zero
● Reducing the industrial accidents rate (Target: Severity rate of 0.03 or lower)● Strengthened management system with environment and safety audits, site safety inspections, and the like, andgave guidance to strengthen Safety and Health Committee operations● Checked state of environmental and safety training and gave guidance. Also checked state of staff’s important

official qualifications relating to operations and gave guidance as necessary● There were both facility and environmental 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★★

■ Environmental Management
Environmental Management Committee
Important items relating to environmental management at the Furukawa Company Group are put forward and discussed by the Environmental Management Committee, whose members include top
personnel from each production base and others. At the Committee
meeting held in April 2019, results of evaluations of environmental
and safety activities for fiscal 2019 and targets for environmental
and safety activities for fiscal 2020 were reported, discussed, andapproved. Results of the Third Medium-Term Reduction Plan werealso reported and discussed and members also discussed the Fourth
Medium-Term Reduction Plan.
(*The name of the department to which the Committee belongs was changed
to the Environmental & Safety Management Department on July 1, 2019, andaccordingly the Committee was renamed the Environmental & Safety Management Committee.)

Environmental protection and safety and health activities

Continuous improvement of environmental performance (CO2, water, waste, chemical substances)

Reporting

Environmental & Safety Management Committee

Furukawa Co., Ltd.

Core operatingcompanies

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

Environmental & Safety
Management Department(secretariat)

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.

[Environmental & Safety Management Committee]
Committee Chairperson: General Manager, Environmental & Safety Management Department
Members:
General managers of each division, core operating companies’ works generalmanagers
Environmental & Safety Management Department
Head Office, Furukawa Co., Ltd.
Once a year

[Environment/Safety promotion meetings (environment meetings, safety meetings)]
Attended by:Environmental & Safety Management Department general manager andemployees, employees with environment and safety responsibilities of core
operating companies and other divisions
Secretariat:
Environmental & Safety Management Department
Meeting location:
As a rule, works of core operating companies rotate as meeting location
Meeting frequency:
Once a year

Strengthening workplaces by forming collaborations between sites● Promoting continuous improvement of operations in accordance with the revised EMS standard ● Stimulating communication internally and externally(starting in fiscal 2020, environment meetings and safety meetings are being held
separately)

Strengthening preventative measures through analysis of various data
● Making effective use of facilities and environmental and safety data needed for operation

Understanding laws, ordinances, and requirements and strengthening practice

TOPICS● Strengthening monitoring of compliance with relevant laws and ordinances

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)

Promoting specific initiatives for the reduction of environmental risks● Promoting specific initiatives on measures for reducing environmental risk to biodiversity ● Promoting continuous tree-planting, forest management, and animal and plant species restoration activities

Management of suspended
and abandoned mines

CSR Promotion Meeting
Guidance/Instruction

CSR Promotion
Department (secretariat)(or general managers of administration if there is no general manager of works)● Reducing greenhouse gas emissions (by improving efficiency of production processes, etc.) ● Reducing the use of water resources ● Reducing total emissions including waste and converting waste into valuables● Reducing emissions of chemical substances by improving productivity and carefully maintaining and managing abatement equipment● Conducting employee training to increase knowledge and skills

President and Representative Director

Secretariat:
Meeting location:
Meeting frequency:● Environmental and Safety Activity Targets for Fiscal 2020

Strengthening workplaces by passing on knowledge and skills● Environment and Safety Promotion System

Maintenance at final disposal sites and in shafts● Thorough everyday inspections● Conducting employee training to increase knowledge and skills

Maintaining and managing mine run-off treatment facilities● Thorough everyday inspections● Conducting employee training to increase knowledge and skills

Furukawa Wins Development Bank of Japan’s Highest Environmental Rating for Fifth Consecutive Year
Furukawa gets financing from the Development Bank of Japan Inc. (DBJ) based on our DBJ Environmental Rating.
Furukawa obtained DBJ’s highest environmental rating on November 30, 2018. The DBJ praised Furukawa
for proactively raising productivity and reducing environmental impact by persistently improving production
processes. Examples mentioned included the Group-wide operation of the environmental management system
and implementation of new environmental impact monitoring and remote control systems at each base. Our
initiatives to define eco-friendly products in each of our wide range of business domains and to boost sales of
those products won acclaim also. In addition, the DBJ noted Furukawa offers society value with products frommany perspectives, including thorough training of salespersons and employees involved with the manufacturingof our eco-friendly products. For these and other efforts, we earned the highest rating for a fifth consecutive
year in recognition of our “especially advanced efforts in consideration of the environment.”

Visit the following site for more information about Furukawa’s Basic Environmental Management Principle and Environmental Conservation Activity Policies

https://www.furukawakk.co.jp/e/csr/environment/
23

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■

Environmental and Safety Audits

INPUT

The Third Medium-Term Reduction Targets

The Group conducts scheduled Environmental and Safety Audits each 取引先との関わり
and Results of the Fifth (Final) Year
year. The aim of these audits is to emphasize correctional measures in
The Furukawa Company Group is currently pursued activities for the
response to accidents and disasters that have occurred, in addition
achievement of the Third Medium-Term Reduction Targets covering
to preventive measures. Environmental and Safety Audits were 株主・投資家との関わり
the period from fiscal 2015 to fiscal 2019. The results of the reduction
conducted in fiscal 2020 to resolve matters to be corrected, improveefforts in fiscal 2019, the fifth and final year, are detailed below. The
environmental performance (CO2 emissions, water consumption
reason for our failure to achieve the reduction targets in the finalused, total emissions including waste), support the initiatives of eachfiscal year of the initiative is largely due to the fact that the Third
place of business toward eliminating accidents and disasters, and 地域社会との関わり
Medium-Term Reduction Targets were established in fiscal 2014; thecontribute to the improvement of daily operational levels.
targets do not fully reflect Vision for 2025, the manufacturing plans ofIn the event of a major disaster or accident or ongoing disasters,companies in our core businesses, and other information published
we hold detailed discussions with on-site managers to determine thesince then, nor do they account for the fact that business locations incauses, and then offer instruction for formulating measures to prevent
some regions sourced all of their power from hydropower at the time,recurrence, and engage in other activities to continuously ensure
whereas they also use electric power from power companies now.
safety in the workplace.
We are presently formulating the Fourth Medium-Term Reduction
Targets for the ten-year period starting in fiscal 2020, and basing
them on Vision for 2025 and the results of the Third Medium-Term
Reduction Targets.

● Energy consumption

Water resource
usedTotal emissions
including waste
揮発油（ガソリン）

OIL

Environmental and safety audit in Osaka Works of
揮発油
Furukawa Chemicals Co.,
Ltd. OIL（ガソリン）
灯油

灯油

OIL
OIL

上水道

CO 2

排水量

工業用水

排水量

0

揮発油
（ガソリン）
灯油

灯油

Volume used軽油

Category

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

OIL
OIL
OIL
OIL
OIL
OIL
OIL
OIL
OIL

Volatile oil(gasoline)

灯油

軽油

OIL

OIL

Total water
withdrawal

OIL

液化石油
上水道
ガス
（LPG）

都市ガス
液化石油
ガス
（LPG）
都市ガス
工業用水

上水道

2
CO Ａ重油
液化石油
排水量
CO 2
ガス
（LPG）

工業用水

Kerosene

301kℓ

液化石油
排水量
ガス
（LPG）

都市ガス
廃棄物等
排水量
総排出量

地下水
工業用水

都市ガス
廃棄物等
総排出量

地下水

地下水

Diesel oil
揮発油（ガソリン）

Clean
water

CO 2灯油

排水量軽油

電気
都市ガス
電気
地下水

2
CO Ａ重油

工業用水
上水道

液化石油
Ａ重油
ガス
（LPG）

揮発油
ソリン）

33kℓ

上水道

195kℓ

廃棄物等
総排出量

OIL

電気

電気
上水道

141
OIL
thousand m3

工業用水

OIL

地下水

OIL
OIL
OIL

上水道

軽油
2
CO

上水道

2
CO軽油

工業用水

Ａ重油
排水量

INPUT
工業用水

排水量
Ａ重油

地下水
OILCategory

液化石油
廃棄物等
Volume used
ガス
（LPG）
総排出量

OIL

OIL

OIL

OIL

廃棄物等
液化石油
総排出量
ガス
（LPG）

地下水

都市ガス

Fuel oil A

221kℓ

地下水

廃棄物等
総排出量

地下水

廃棄物等
総排出量

揮発油
（ガソリン）

City gas

800

2%

-9%

5%

-13%

CO 2

工業用水

排水量

上水道

CO 2

511

600

27

24

25

26

26

4,000

10
2015

2016

2017

2018

2019 (FY)

0

2,000
2015

2016

2017

2018

2019 (FY)

651

671

623

692

6,884

6,832

6,266

7,160

5,347

3,803

3,098

3,458

3,168

3,374

2,489

2,928

3,357

2015

2016

2017

2018

2019 (FY)

3,956
2,858

Total emissions including waste increased 4% year
on year due to the impact of increased production
throughout the Group and other factors. However, our
subdivision of resources resulted in a 15% increase invaluables.

800
600
400

200

200
2015

0

Waste

(thousand m3)

666

2016

2017

2018

2019 (FY)

Water resources input recorded an 11% increase year on year due toincreased production in the Unic Machinery and Electronics segments,
despite our efforts toward water intake control (visualization) and
improving water supply and wastewater pipes.

TOPICS

6,000

20

400

0

CO2 emissions

30● Wastewater volume

-13%

上水道

483

8,000

0

455

471

465

2015

2016

2017

410

2018

477

2019 (FY)

Water consumption increased 11% year on year. In
addition, wastewater volume increased 16% due to a
decline in the production of products with water as theprimary raw material.

Our Website* Now Features a List of Human- and Eco-Friendly Products
The Group is undertaking initiatives based on the concept of manufacturing products thatare human- and eco-friendly in every stage from new product development and design tomanufacturing, usage, and disposal. We have leveraged the technology we cultivated throughmine development and proactively introduced new technology to make contributions to society.
The list includes human- and eco-friendly products that resulted from these efforts.
The Group intends to continue providing human- and eco-friendly products and services, andcontributing to the realization of a sustainable society.

26
thousand t-CO2* Japanese site only

都市ガス
電気

Liquefiedpetroleumgas (LPG)
揮発油（ガソリン）

359t

電気

灯油
揮発油
（ガソリン）

灯油

OIL

揮発油
（ガソリン）
CO 2

Industrial
water
排水量
軽油

OIL

OIL
OIL
OIL

目標

貢献内容

軽油

工業用水

排水量

OIL
OIL

廃棄物等
総排出量
排水量
CO 2

液化石油
ガス
（LPG）
Ａ重油

550
OIL
thousand m3

地下水

廃棄物等
Ａ重油
総排出量

軽油
廃棄物等
総排出量
都市ガス

OIL

Groundwater
液化石油
ガス
（LPG）
Ａ重油

液化石油
ガス
（LPG）

地下水

0 thousand m

3を及ぼす要因の特定と抑制

削減させる

Wastewater
volume477
thousand m3ーン、乳がん検査装置

TOPICS

Initiatives for Achieving SDGs

6

水資源の有効活用

廃棄物等
総排出量

下水処理施設のポンプ設

地下配管の漏水対策、クーリングタワーに備

おける水飛散量の軽減、生産時の水の循
環使用、地下水の有効活用―

・太陽光発電設備における稼働トラブルゼ

再生可能エネルギーの導入を促進する

ロ、発電損失ゼロ
・再生可能エネルギーの普及
ベルトコンベヤ

7

廃棄物等
総排出量
排水量

工業用水

具体的な貢献内容
環境基準の達成、作業環境の改善に影響

ル工事用電気集じん器、び土壌の汚染による死亡および病気をコンベヤ類、ユニッククレ

上水道

地下水

貢献に寄与する製品など
電気集じん装置、トンネ

有害化学物質ならびに大気・水質およ
3

工業用水

地下水

環境分野における SDGｓ関連活動一覧

Ａ重油
灯油

2
CO灯油

43,593thousand kWh

Electricity
軽油

上水道

OIL
OIL

・エネルギー消費効率の向上、生産現場の効率性向上省エネルギーの導入を促進する

Total emissions
including waste

7,160tOur Environmental and Safety Management Department is responsible for promoting the Group’s
environment-related initiatives for achieving SDGs. We are working to identify and take action
regarding specific contributions and products from the Group’s product lineup that contribute to
the achievement of 9 of the 17 SDG targets.

・高速道路事業等における高効率ベルトコ
ンベヤの導入、コージェネレーションシス
テム、環境配慮 型製品の普及

9

産業と技術革新の基盤をつくる

11

文化遺産保護―CSR 調達と調達先の環境技術の向上―（世界の）文化遺産および自然遺産の保護・保全の努力の強化をする

天然資源の持続可能な管理および効―循環利用率の向上、生産現場の効率性向

チッパー

LCA を活用した環境保全活動、化学物質

率的な利用を達成する
化学物質や廃棄物の大気・水・土壌へ

上、天然資源の LCA 分析による省資源の排出を大幅に削減するの代替促進、廃棄物発生量の削減

12削減・リサイクルおよびリユースにより―廃棄物発生量を削減する

3R（リデュース、リユース、リサイクル）の促
進―CSR 報告書への記載充実、外部評価の受

環境保全に関する情報発信
審、トップランナーの取り込み
気候変動及びその影響を軽減するため

電気
都市ガス

Ａ重油
廃棄物等
総排出量

889
thousand m3

458● Water resources withdrawn

Volume used
OIL

429

Valuables(t)

Energy consumption increased 6% year on year. CO2
emissions rose 2% due to the CO2 emissions factor.

OUTPUT
Category474● Total emissions including waste

Energy consumption recorded a 6% increase year on year due
to increased production in the Unic Machinery and Electronics
segments, despite our efforts to reduce consumption by introducing
energy-saving equipment, changing production lines to shorten idle
time, and reducing the travel distance of loading, unloading, andtransportation machinery.
Nonetheless, Furukawa Co., Ltd. has earned the top ranking of S
Class in each of the four years since the Operator Class Evaluation
System was instituted under the Energy Conservation Act in fiscal
2016.

■ Material Flow of the Furukawa Company Group (Fiscal 2019)
揮発油（ガソリン）

40(thousand m3)* The targets and results are compared to values from fiscal 2014.
工業用水

800

200

CO 2

上水道

(thousand t-CO2)

400

FY2019 reduction FY2019 reduction
rate targets
rate results3%● CO2 emissions(thousand GJ)

600● Reduction rate results in fiscal 2019

CO2 emissions

OUTPUT

液化石油
ガス
（LPG）

―

トップランナーに関する情報収集、水平展

13の人材を育てる開オーシャンクレーン

14

オーシャンクレーンの開発・改善による持海の豊かさを守る
続可能な漁業（養殖業他）の効率促進―

・山林管理（伐採・境界線整備、等）―

・緑化活動、外来種の排除、ホタル再生活

森林の持続可能な管理・原材料使用段階での計画的な植林
15
生物多様性を含む山地生態系の保全
動を確保する
・生態系のモニタリング・保護

電気

電気

都市ガス
液化石油
ガス
（LPG）

Ａ重油

都市ガス

電気

Visit the following site for principles and policies for Environmental and Safety Audits:
都市ガス

化石油
（LPG）

電気

https://www.furukawakk.co.jp/e/csr/environment/
電気

市ガス

電気

25

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■ Management of Chemical Substances

取引先との関わりIn fiscal 2019, the number of chemical substances handled that are required to be reported under the PRTR*1 system increased by one from theprevious fiscal year to 15. Thanks to new equipment at some plants, we were able to significantly decrease atmospheric emissions of toluene,
ethylbenzene, xylene, and other substances.
株主・投資家との関わり● Emission and Transfer of Substances Required to Be Reported under the PRTR System
Substance
numberNumbers in blue: Decreased from the previous fiscal year
Chemical 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

Numbers in red: Increased from the previous fiscal year (unit: kg/year; or mg-TEQ/year for dioxin only)
Emissions
地域社会との関わり

Atmosphere
FY201840,038057,642
3
8.5
0
4,110
669
54,868
0
0
0
55
16
0

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

Public waters
FY2018FY2019

0
0
0
0
0
0
0
0
0
0
0
14
0
0
0

Volume transferred

Soil
FY2018

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

Landfill at works
FY2019

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

FY2018
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 2019 reached ¥402 million. The Group has introduced
energy-saving equipment and enhanced preventative measures with the aim of promoting
environmental conservation. As a result, pollution prevention costs account for 71% of thetotal.
Costs totaled ¥1,187 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)

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

FY2018
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
7
0
0
0
0
0
0
0
0
0

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

FY2018
2,509
4
4,544
7
0.07
0
363
1
2,838
0
1,987
1,436
28
0
1

The economic impact deriving from resource
circulation (gains on sale of valuables, etc.)
for fiscal 2019 was ¥204 million, a year-onyear increase of ¥42 million, as a result of
subdividing the resources. In addition, thereduction of electric power purchasing costs
due to the operation of turbine generators of
the Osaka Works of Furukawa Chemicals Co.,
Ltd. was ¥43 million, essentially identical to thefigure from the previous fiscal year.

Amount357

764

Resource circulation
Gains on sale of stainless(gains on sale of valuables, etc.) steel, iron, etc.

204

285

570

Cost for saving energy and maintenance and management of forests owned by the Company

6837

Resource circulation cost

Cost for recycling, waste processing, and effective use of water

4

157

Reduction of electric powerpurchasing costs due to theoperation of steam turbine
generators(2) Upstream and downstream costs

Cost for recycling, recovering and re-commercialization of products from the market

0

185

Total

(3) Administration cost

Cost for operating ISO 14001 standards, environmental education, cleanup andgreening of business sites

2862(4) R&D cost

R&D cost to develop products that contribute to environmental conservation

17

174

(5) Social activity costs

Cost associated with various social activities including cleanup of neighborhood
areas, planting of greenery, etc.

02(6) Environmental remediation cost

Cost allocated for recovery from environmental degradation due to business activities

0

0

402

1,187

Energy-saving effect● Breakdown of Environmental
Conservation Cost Invested

Total investment
in environmental
conservation in
fiscal 2019

● Environmental Conservation Benefit¥402 million

Difference from theprevious fiscal year

Environmental conservation benefit category

Environmental performance indicator (unit) FY2018 FY2019

Environmental conservation benefit related toresources input into business activities

Total energy input volume (thousand GJ)

483

511 Increased by 28 thousand GJ

Input volume of water (thousand m3)

623

692 Increased by 69 thousand m3

Volume of greenhouse gas emissions(thousand t-CO2)

26

26

No change

Total emissions including waste (t)

6,884

7,160

Increased by 276 t

A cherry tree planted at the 10th Ashio
Cherry Tree-Planting Drive (March 2019)

The newly installed milk of lime supply equipment and emergency generators

Firefly Rehabilitation Project at the Site of theFormer Kune MineAs 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 ward of Hamamatsu City in Shizuoka Prefecture.

(Millions of yen)Content of the benefit

Cost for preventing air pollution and water pollution*1

As a distinct greening activity of the Group, we organize Ashio Cherry
Tree-Planting Drives with the aim of planting 1,000 cherry saplings oncompany property in the Ashio area. The first drive was held in March
2009, and we have held drives each year since then. The 10th treeplanting drive in March 2019 drew 81 participants, including Group
employees and their family members, and they planted 60 doubleflowered cherry trees to bring the total number of trees planted to 540.
In addition, in April 2019, the 5th Furukawa-no-mori Tree-Planting
Drive was held on Furukawa Co., Ltd. property in the matsuki area,
Ashio-machi of Nikko City in Tochigi Prefecture. The drive drew 107
participants from the 24 corporate members of the Tochigi Furukawa
Association, and they planted 40 sargent cherry trees.
The Tochigi Furukawa Association was established in 1966
to promote the mutual development of the Furukawa Group in
Tochigi Prefecture, and launched this tree-planting drive in 2016 tocommemorate the 50th anniversary of the association’s founding. We
intend to continue implementing these activities in the future.

In 2018, we constructed an additional reserve system for the milkof lime supply equipment of the neutralizing processing facilities, acritical part of the process at the Nakasai Water Treatment Plant. We
are also adding more emergency generators to prepare for power
outages, and making efforts to ensure safety-oriented operations andprevent accidents that threaten the environment.

● Economic Impacts of Environmental
Conservation (Material Impacts)

Costs

Pollution prevention cost

Environmental conservation benefit related towaste or environmental impact originating frombusiness activities

FY2019
1,911
2,507
3,802
0
0.05
0
440
180
1,949
0
2,226
1,726
32
0
0

Investments

Global environment
conservation cost

Total

27

Outside of works

FY2019(Millions of yen)Content of the principal activities(1) Business area costs
Breakdown

FY2019Hosting the 10th Ashio Cherry Tree-Planting Drive(March 2019) and 5th Furukawa-no-mori TreePlanting Drive (April 2019)

Economic Impacts ofEnvironmental Conservation

Environmental Conservation Costs

Category

Transfer to sewer■ Promotion of Biodiversity Protection Activities

Pollution prevention cost

70.9%

Global environmental conservation cost

16.9%

Other

12.2%

The 10th Ashio Cherry Tree-Planting Drive
43
247

Safety Control Measures at Suspended andAbandoned MinesThe Group’s basic policy toward managing suspended and abandoned
mines is to continue safety-oriented operations; accordingly, we
systematically promote prevention work to ensure the safety of shafts,
dumps, and water treatment plants and other mine runoff treatment
facilities.
Although more than 45 years have passed since the closing of
the Ashio Copper Mine, acidic mine runoff with heavy metal content
continues to flow from the mine; thus, our Ashio Office uses a threeshift system to operate the Nakasai Water Treatment Plant 24 hours
a day, 365 days a year.

A genji-botaru firefly larva in
its habitat at the Kune Mine

PRTR: Pollutant Release and Transfer Register28

環境への取り組み● Relevant SDGs

Employee Relations
Ideal image for 2025

従業員との関わり

Our efforts to promote 取引先との関わり
diversification of working styles in a manner that makes
use of diverse human resources will culminate in rewarding work environments
where it is possible to create new forms of value by maximizing the abilities of
株主・投資家との関わり
each and every employee.

Fiscal 2019 targets and assessments
Cultivate human resources
・Promote job-specific human resources cultivation
Promote work-life balance
・Implement telework options on a trial basis
・Expand application of the flextime system
Promote diversity
・Actively employ women in career-track positions
and foreign employees
・Redouble efforts to hire people with disabilities

Achievement

Fiscal 2020 targets

地域社会との関わり Cultivate human resources★★★

・Introduce new employee programs
・Consider revisions to the personnel evaluation system
・Review possibility of increasing the retirement age
Promote work-life balance
・Implement telework options
・Expand application of the flextime system
Promote diversity
・Actively employ women in career-track positions (The percentage

★★★
★★ *
★★
★★

The Furukawa Company Group has been promoting work stylereforms with the aim of improving labor productivity and creativity
based on the development of each employee and creating healthy
and rewarding work environments for all members of our diverse
workforce by reducing overtime work and encouraging employees totake more paid annual leave.
● Three Aspects of Work Style Reform and Related Considerations
Improvement of work Automate and computerize operations, revamp layouts, review
environments
personnel allocations, shorten meetings, effectively manage meetings
Review of systems
and working
conditions

Increase the number of departments adopting the flextime system,
implement teleworking, adopt discretionary work systems, institutezero-overtime days

Reform of mindsets

Making people conscious about the improvement of efficiency● Quantitative Targets of Work Style Reforms
Prescribed working hours (a)Extra working hours*1 (b)Hours of paid annual leave taken*2 (c)Total actual working hours (a) + (b) - (c)Fiscal 2019 results
1,891 hours
305 hours
79 hours
2,117 hours

Fiscal 2020 target
1,891 hours
186 hours
78 hours
1,999 hours*1 25.40 hours/month → 15.50 hours/month*2 Achieved three-year target of 10 days■

Initiatives for Achieving Positive Work-Life
BalanceCreating a Comfortable Work Environment
We have been promoting initiatives that help employees maintaintheir health and achieve positive work–life balance by enabling themto reduce their overtime and take a greater proportion of their paid
annual leave.

● Initiatives in Fiscal 2019

・Considered options for introducing employment systemthat would ensure stringent oversight of working hours
・Set days on which employees are encouraged to takepaid annual leave and urged employees who have used a low
proportion of such leave (fewer than 5 days) to take time off
・Implemented telework options on a trial basis
・Held seminars on balancing work with parenting and othercaregiving obligations

29

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.

of women among new graduate hires shall be 20% or higher)★★★Target achieved; ★★Target partially achieved; ★Target not achieved■

We will create work environments that employees find rewarding completewith fair performance evaluations and incentives.

Atsushi Takano

・Redouble efforts to hire people with disabilities (The percentage of* Slight increase in the number of employees using flextime

Workstyle Reforms of the Furukawa
Company Group[Comment from the Responsible Department] Overview of Fiscal 2019

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

employees with disabilities in the Furukawa Company Group shall be 2.0% or higher.)■ Promoting Diversity■ Respect for Human Rights

Empowering the Female Workforce

Harassment and Discrimination Prohibited

Furukawa Co., Ltd. has been focusing its efforts on actively recruitingand 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.

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

● Action Plan for Promoting Support for Female Employees(April 1, 2016 to March 31, 2021)
Target No. 1

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

Training on Human Rights

Target No. 2

Employ at least 10 female managers.

Target No. 3

Establish a re-employment program for retirees

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.

The Furukawa Company Group has established a code of conduct
calling for its employees to respect basic human rights and refrainfrom using discriminatory language, and accordingly has all of its
newly hired employees take part in human rights training. Moreover,
we also strive to create pleasant work environments through otherefforts that involve having employees learn from case studies of
specific developments that have given rise to human rights violations.
For instance, this involves providing in-house training pertaining toworkplace harassment to employees who are taking part in our
employment hierarchy-specific training.

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, andby providing paid leave to cover some time taken off to care for infants
and toddlers. We also encourage male employees to take parental
leave so that they might also have opportunities to participate in childrearing.

Hiring People with Disabilities
We hire people with disabilities at various workplaces and for various
types of work, thereby promoting their independence and participation
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 After Their Retirement
In accordance with our Continued Employment Rules, we rehire
employees who want to continue working after reaching the official
retirement age of 60. Such employees who have returned to work
after retiring play active roles in training our mid-level and younger
employees, thereby imparting skills they have developed over theirlong careers.

■ 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 of individuals andaccordingly creating a rewarding corporate culture absent of humanrights violations and discrimination, where individuals are evaluatedfairly.

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 program is organized by level of the employment-hierarchy,
encompassing newly hired, second year, third year, fifth year, eighthyear, and tenth year employees, newly appointed managers, andsection 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, andafforestation initiatives.

● Training Tailored to Areas of Expertise and Occupations
We implement training tailored to employees’ areas of expertise andprofessional qualifications, 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 heor she is expected to fulfill. To such ends, we discontinued our previous
system of assigning grades based on professional qualifications, andhave assigned employees roles that they are expected to fulfill. We
will revise our personnel evaluation system by April 1, 2020, andaccordingly hope to achieve a more robust professional environment
in terms of empowering our motivated employees in a manner that
ensures their peace of mind. This will involve our endeavoring to guide,cultivate and develop the potential of such employees, as well as
ensuring their appropriate job placement, upon assessing them withrespect to factors that include their job performance, achievement oftargets, motivation and proficiency.

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 selfreflection, and findings of performance evaluations. Upon having
reviewed specifics of employee self-assessments, managers thenalso furnish advice to employees, verify targets that have been
established, and share details in that regard. Meanwhile, supervisors
also provide their assessments with respect to the self-analysis. The
process of undergoing straightforward performance assessments
by their supervisors enables employees to scrutinize themselves ona regular basis, which thereby helps fuel their motivation 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■ Employee Health Management● Occupational Safety Record of the Furukawa Company Group:
Frequency and Severity of Accidents
株主・投資家との関わり
At the Furukawa Company Group, we monitor the health of our(Frequency)(Severity)
Frequency
Severity 0.09
employees particularly through our regularly scheduled physical
1.8
0.09
examinations and special physical examinations for our employees who
1.6
0.08
地域社会との関わり
handle specified hazardous substances. Meanwhile, on the basis of such
0.08
1.4
0.07
physical examination outcomes we also provide health-related guidance
0.07
1.2
0.06
and provide support with respect to employee health maintenance. We
1.0
0.05
0.05
0.04
also safeguard our employees from the effects of second-hand smoke
1.08
1.07
0.8
0.04
by setting up separate smoking areas as stipulated under Japan’s Health
0.86
0.6
0.03
Promotion Act.
0.65
0.4
0.02
In fiscal 2018, we strengthened our partnership with Furukawa Health
0.43
Insurance Society, and embarked on efforts that involve planning and00overhauling various initiatives, drawing on physical examination data.
2019 (FY)
2015
2016
2017
2018
We are going to work to achieve lower rates of smoking among our
Number of
553
42
incidents requiring
workforce while encouraging a higher proportion of employees to engage
leave of absence
in regular exercise.
Notes: 1. Accident frequency refers to the rate of occupational accidents with casualties per one
We will also engage in preventative measures with respect to employee
million total working hours.
mental health. This will involve setting specific targets geared to ensuring
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 of absence
that the company is a safe and pleasant place to work, while striving toof at least four days.
maintain positive mental health based on the Furukawa Group Company
Mental Health Promotion Plan. Meanwhile, we will strive to help employees
who are struggling with mental health issues return to work. This will involve
Safety Measures and Education
coordinated efforts enlisting occupational physicians, personnel and labor
At each of the Furukawa Company Group’s works and sites of businessaffairs representatives, and supervisors, and will furthermore entail our
we are taking steps to develop a more acute awareness of dangers
working in conjunction with specialized institutions and medical specialists
by repeatedly carrying out “KYT” hazard prediction training geared
from outside the Group.
to preventing work-related accidents. Our safety management staff
members facilitate efforts of participants, and thereby more effectively● Smoking and Regular Exercise Among Furukawa Company
conduct training, by turning to examples of past incidents selectedGroup Employees
based on the nature of work performed at the respective workplaces.
According to a survey of employees who are 40 years of age and older
Such training is carried out using the basic four-step approach of
Smoking
Employees who
31.7%
23.1%
KYT (hazard prediction training). Participants in such training initiallyrate (2.9% fewer than in the previous year)
exercise*(1.9% fewer than in the previous year)
pinpoint conceivable hazards by referring to illustrations in that regard,
and then narrow down the choices through discussions on key points of* This refers to the percentage of employees who exercise to the point of generatingslight perspiration for no less than 30 minutes per exercise session, and who have been
danger. Finally, the participants verify and reinforce the team’s decisions
exercising at least twice per week for at least one year.
using a finger-pointing and choral declaration routine where participants
point at the same time while
Recognized as a 2019 Certified Health & Productivity
simultaneously uttering a safety
TOPICSManagement Outstanding Organization in the Largeslogan.
Participants are ultimately
Enterprise Category (White 500)
able to discover, understandFurukawa Co., Ltd. was recognized as a 2019 Certified Health &and find solutions to dangers
Productivity Management Outstanding Organization in the
Large Enterprise Category (White 500) for its efforts
associated with the workplacewith respect to strategically carrying out
and work-related tasks throughinitiatives with regard to its employees’ healthsuch training, thereby returningfrom a management perspective, based onback to their workplaces
findings of the Certified Health & Productivity
KYT (hazard prediction training)equipped with such knowledge.
Management Outstanding Organizations
Recognition program implemented by
Japan’s Ministry of Economy, Trade andIndustry (METI).

■ Occupational Safety and Health
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 our employees.
When it comes to education, we plan and regularly implement mediumto long-term skills training for personnel who are in charge of safety andhealth. Moreover, we are taking steps to provide more robust guidance to
our managers and employees, given the importance we place on taking
consistent action in terms of carrying out risk assessments, addressing
near-miss incidents, proposing solutions, and using the finger-pointing
and calling approach to occupational safety in achieving our goal of zeroaccidents or disasters.
In fiscal 2019, we achieved better safety results in terms of lower
frequency and severity of occupational accidents. Going forward, we
will strive to achieve zero work-related accidents or disasters in partby preventing their recurrence. Such efforts will involve carrying out
investigations into root causes of such instances that have occurred, in
conjunction with on-site managers.

31

Occupational Safety and Health Activities
As part of our occupational safety and health activities, we implement
education and training on cardiopulmonary resuscitation and use of
automated external defibrillators (AED) as part of our occupational safety
and health activities at our respective factory and business locations. It is
important that employees repeatedly undergo training that entails properly
following such procedures, even in cases where they have dealt with suchreal-life emergencies. We intend
to create opportunities for many
employees to take part in suchtraining, particularly given that
there have been instances wherecardiopulmonary resuscitation
and AEDs have been used tosave lives of employees suffering
heart attacks at Furukawa
Company Group works.

Instruction on Safety at Overseas Business Locations
At our overseas business locations, we conduct annual surveys
particularly regarding local implementation of mandatory inspections offacilities, work environment measurements, and safety education. We
furthermore provide guidance and advice with the aim of helping to bringabout safer and more comfortable work environments, in light of factors
such as local laws, climate and natural features.

■ Employee Data
● Employee Diversity (calculated on a consolidated basis, excluding figures stated in the Notes)
Unit

FY2015FY2016FY2017FY2018FY2019Persons

2,456

2,521

2,616

2,690

2,757

Male

Persons

-

2,238

2,257

2,299

2,342

FemalePersons

-

283

359

391

415

Age

43.7

44.8

45.8

46.8

46.4

Age

45.3

47.0

47.7

49.0

48.7

Number of employees

Average age
Non-consolidated basis

Male
FemaleYears of continuous employment
Non-consolidated basis
Number of managers

Age

35.2

35.3

36.4

37.2

36.9

Years

17.4

18.4

19.2

20.3

19.8

Male

Years

18.4

19.9

20.4

21.7

21.4

Female

Years

12.3

11.9

13.2

13.9

13.2

Male

Persons

536

533

528

514

490

FemalePersons

8

8

10

11

9

Percentage of female managers

%

0.33

0.32

0.38

0.41

0.33

Number of foreign national employees

Persons

426

447

527

585

590

%

2.19

2.55

3.35

3.49

3.48

Percentage of employees withdisabilities
Non-consolidated basis
Number of older employees(60 and older)

Persons

107

111

102

107

105

Male

Persons

107

106

97

102

102

FemalePersons

0

5

5

5

3

Persons

39

47

49

43

62

Number of recent graduate hires* Hired in Japan

Number of persons no longer
employed by Furukawa
among the aforementioned *1

Male

Persons

36

42

45

39

53

FemalePersons

3

5

4

4

9

Foreignnationals

Persons

0

0

0

0

3

Persons

10

10

6

0

2

Male

Persons

9

9

6

0

2

FemalePersons

1

1

0

0

0

Remarks

Domestic employees

Domestic employees

Domestic employees

Employees of
Furukawa Co., Ltd.

Employees of
Furukawa Co., Ltd.

*1 Refers to the number of employees who have resigned for personal reasons and those who are no longer employed at behest of the Company, not including those transferred, etc.

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

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

FY2015FY2016FY2017FY2018FY2019

25

36

35

33

Male

Persons-

FemalePersons

-

4

6

8

6

Male

%

-

68.6

100

85.4

86.8

Female

%

-

100

100

100

100

Male

Days

-

21.8

3.5

13.9

21.4

Female

Days

-

293.0

387.7

421.5

499.0

Percentage of employees returning to work
after having taken parental leave

%

100

100

100

100

100

Number of employees taking caregiver leave

Persons

0

0

0

0

1

Prescribed working hours

Hours

1,891

1,891

1,891

1,891

1,891

Extra working hours

Hours

315

286

248

322

305

Hours of paid annual leave taken

Hours

71

72

75

76

79

Total actual working hours

Hours

2,136

2,105

2,064

2,138

2,117

Overtime hours (monthly average)

Hours

26.27

23.80

20.65

26.85

25.40

Percentage of paid annual leave taken

%

44.3

45.5

47.4

48.2

51.0

32

従業員との関わり● Relevant SDGs

Supplier Relations

取引先との関わり

株主・投資家との関わり

Ideal image for 2025

[Comment from the Responsible Department] Overview of Fiscal 2019

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

Fiscal 2019 targets and assessments

Fiscal 2020 targets

Achievement

Further improve the precision of CSR surveys of major suppliers★★★

Interview suppliers about CSR activities★★

Expand the scope of CSR surveys to include the major suppliersof other group companies★★★

Formulate specific measures to strengthen control(QCD*1 + CSR) of major suppliers★★★

Foster partnerships with suppliersContinue Groupwide CSR-oriented procurement activities★★★

Continue Groupwide CSR-oriented procurement activities

Further improve the precision of CSR surveys of major
suppliers
Conduct interviews about CSR activities tailored to thecircumstances of individual suppliers
Strengthen management (QCD + CSR) of major suppliers

Promoting CSR Activities in the Supply Chain

In fiscal 2019, we began to consider methods for individual interviews based on the results of analysis of CSR
promotion questionnaires and additional questionnaires issued to major suppliers in fiscal 2018.
In addition, to impart the Group’s CSR Promotion Guidelines to even more suppliers, we broadened thescope of CSR promotion questionnaires to include major suppliers of the subsidiaries of core operatingcompanies in the Machinery segment, and conducted questionnaires accordingly.
We intend to use the results of the questionnaires conducted to date and individual interviews to be
conducted from now on to further deepen partnerships.
We are also committed to making contributions to society throughout the supply chain through CSR
activities.

Naoki Ikeda
General Manager, Purchasing Department★★★Target achieved; ★★Target partially achieved; ★Target not achieved■ Basic Approach
The Furukawa Company Group aims to build and maintain mutually
beneficial and reciprocal trust-based relationships by exchanging
information with suppliers and otherwise emphasizing communication.
Here, we adhere to the principles of fairness and impartiality,
comprehensive economic rationality, and the spirit of compliancewith laws and confidentiality as set out in the Furukawa Company
Group Basic Procurement Policies. At the same time, we collaborate
with suppliers to encourage procurement activities that take CSR into
consideration.
In addition, we are making efforts to procure copper ore from mines
outside Japan in ways that consider the environmental impacts, labor
problems, and other issues.

■

Promoting CSR Activities in the Supply
Chain

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 bycustomers.”
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 cooperative
relationships, in fiscal 2019 we worked to further strengthen the CSR
procurement activities we have promoted since fiscal 2017.
We intend to continue promoting CSR activities throughout the
supply chain.

● Transition of CSR Procurement Initiatives

CSR surveys

Policy establishment

FY2015-2016

Questionnaire
surveys(operatingcompanies)
Additionalquestionnaire
surveys(operatingcompanies)

FY2017-2018

2014: ・Established Furukawa Company
Group Basic Procurement Policies
2015: ・Created Furukawa Company GroupCSR Guidelines for suppliers
2015: ・Prepared questionnaires for
2017: ・Prepared additional questionnaires for suppliers
suppliers
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.)
2017: ・Conducted additional questionnaire surveys (Target: Major
suppliers)(Furukawa Co., Ltd.) (Core operating companies in the
Machinery segment) (Furukawa Denshi Co., Ltd.) (Furukawa
Chemicals Co., Ltd.)Internal training

Interview surveys

CSR and CSR
procurement*1

2018: ・Core operating companies in the Machinery segment,
headquarters (Target: Purchasing Department generalmanagers and section managers)
2018: ・Materials Division of headquarters (Target: Purchasing
Department employees)

In fiscal 2019, we considered methods of following up in responseto the results of the questionnaire surveys. In addition, we began
to conduct individual interviews of some suppliers, and confirmed
the questionnaire survey content and explained the purpose of theGroup’s CSR procurement activities a second time.

② Broadening the scope of CSR surveys to include
major suppliers of subsidiaries

2018: ・Conducted questionnaire surveys (Target: Major suppliers)(Furukawa Castec Co., Ltd.) (Asio Rock Drill Co., Ltd.)(FRD Iwaki Co., Ltd.)

2018: ・Conducted additional questionnaire surveys (Target: Major
suppliers)(Furukawa Castec Co., Ltd.) (Asio Rock Drill Co., Ltd.)(FRD Iwaki Co., Ltd.)
2018: ・Began conducting interviews (Target: Major suppliers)
2019: ・Conducted interviews (Target: Major suppliers)
2019: ・Furukawa Castec Co., Ltd. (Target: Responsible person in
Purchasing Department)

2019: ・Asio Rock Drill Co., Ltd. (Target: Responsible person in
Purchasing Department)③ Strengthening relations with major suppliers:
Fostering partnerships
The Group considers suppliers to be important partners in aiming formutual development.
Thus, in order to cement these partnerships, we intend to use CSR
initiatives to deepen mutual
understanding and foster
trust-based relationships.

With our sights set on further promoting CSR activities throughout the
supply chain in fiscal 2019, we further expanded the scope of CSR
surveys to include major suppliers of subsidiaries of core operatingcompanies in the Machinery segment, and conducted briefings ofthe Group’s guidelines, questionnaires, and additional questionnaires
accordingly.

FY2019-2020

2019: ・FRD Iwaki Co., Ltd. (Target: Responsible person in
Purchasing Department)

SDGs, ESG, other33

2017: ・Furukawa Co., Ltd. (Target: Purchasing Department employees)
・Core operating companies in the Machinery segment (Target:
section managers of Purchasing Department )・Core operating companies in the Machinery segment (Target:
Purchasing Department employees)
2018: ・Furukawa Chemicals Co., Ltd. (Target: Responsible person in
Purchasing Department)① Follow-up on questionnaire survey results

A production briefing at the Takasaki Yoshii
Works of Furukawa Rock Drill Co., Ltd.

■ 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 human rights, environmental issues, safety,
and other aspects. The Purchasing Department of Furukawa Co.,
Ltd. is cooperating with core operating companies in the Machinery
segment to offer guidance, recommendations, and other support tosuppliers as necessary.
As an example of ouractivities in fiscal 2019,
we visited an affiliate thatfabricates components for can
manufacturing, and confirmed
and offered guidance on theirmaterial management andquality inspection systems foreach fabrication process, andon environmental issues, andOffering technical guidance to ansafety measures.

Each year, the company’s Purchasing Department holds two Materials
Strategy Conferences attended by the managers of Purchasing
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 operating company’s progress on annual
targets and exchange opinions toward issue resolution.
In fiscal 2019, participants examined in detail and exchanged
opinions on strengthening supplier management geared toward
fostering partnerships, a core element of Vision for 2025 for theProcurement Division.
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 and meetings held for individual
projects as needed.

affiliate in Japan

QCD: Abbreviation for quality (Q), cost (C), and delivery (D)34株主・投資家との関わり

取引先との関わり● Relevant SDGs

Community Relations

地域社会との関わり

Shareholder and Investor Relations

株主・投資家との関わり

地域社会との関わり■

Participating in Volunteer Cleanup of
Usuiso Beach in Iwaki

On Saturday, July 7, 2018, Furukawa Company Group companies
participated in a volunteer cleanup of Usuiso Beach in the city of
Iwaki. The event was hosted by the Iwaki Furukawa Association, andthe participating companies included Furukawa Industrial Machinery
Systems Co., Ltd. (headquarters and Tohoku Branch Office),
Furukawa Denshi Co., Ltd., Iwaki Semiconductors Co., Ltd., FRD
Iwaki Co., Ltd., and Furukawa Co., Ltd. (formerly Iwaki Kosan).
Usuiso Beach underwent infrastructure construction to repair
damage caused by the tsunami resulting from the Great East Japan
Earthquake. During the construction, the Iwaki Furukawa Association
engaged in volunteer cleanup activities at other sites. Now theconstruction is complete, and the association restored Usuiso Beachas the focus of volunteer cleanup events, starting with this year’s
event.
More than 120 association members participated in the cleanup
event, including more than 30 employees of the Furukawa Company
Group.

■ Hosting Tours of Industrial Heritages
Each year, the Ashio Office of Furukawa Co., Ltd. hosts special public
viewings of industrial heritages at the request of the Nikko City Boardof Education.
In July 2018, we hosted public viewings of the Furukawa Kakemizu
Club, the site of the Honzan Smeltery, and the site of the former villageof Matsuki. In December 2018, we hosted public viewings of the
Watarase Company Housing and Bathing Area.
Each time, we received more applications than spaces available
for the viewings, which reminded us of people’s high level of interest
in industrial heritages in the Ashio area. The Ashio Office intends
to continue cooperating by hosting these tours to encourage
understanding of the value of preserving and using these industrial
heritages.

Site of the Honzan Smeltery

35

Site of the former village of Matsuki■

Participating in the Hirose River 10,000 People
Project (27th Hirose River Basin Total Cleanup)

Furukawa Industrial Machinery Systems Co., Ltd. participated in the
Hirose River Basin Total Cleanup, an event hosted by the Hirose River
10,000 People Project Organizing Committee, a 184-member groupto which the company belongs. This year’s event, the 27th, was heldon April 20, 2019, and seven people from the Tohoku Branch Officeof Furukawa Industrial Machinery Systems participated. The event
was blessed with good weather—although chilly at first, it heated up
later on—and everyone left witha refreshing feeling. The Tohoku
Branch Office intends to continue
to make efforts to maintain thecleanliness of the Hirose Riverthrough activities hosted by thecommittee.

■■ Basic Approach
The purpose of the IR activities of the Furukawa Company Group is to provide corporate information including management policies, businessdescriptions, business strategies, performance and financial 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 and desires of shareholders and investors with regard to the Group to management
as feedback, and otherwise strive for sufficient two-way communication.

■ Primary IR Activities
Communication with institutional investors andanalysts
We hold results briefings (twice each year, at the end of the fiscal
year and second quarter), individual IR meetings and small meetings,
distribute and disseminate annual reports, hold tours of our plants
and the like, conduct interview surveys, and more as part of our IR
activities.

Communication with individual investors
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.

Hosting a Ceremony to Commemorate theOpening of the Furukawa Ashio History
MuseumOn April 3, 2019, a ceremony was held to commemorate the openingof the Furukawa Ashio History Museum. At the ceremony, President
Miyakawa and other key people from the company joined Nikko City
Mayor Kazuo Oshima and several others in the tape-cutting. The
museum had operated under the NPO Ashio History Museum, but
operations were transferred to the company, and we changed thename to Furukawa Ashio History Museum.
The museum features a display of over 30,000 materials, pictures,ores, and other valuable items donated or entrusted to the museum bypeople with connections to the Ashio Copper Mine and the company.
To coincide with the ceremony, we partially renovated the museum
and expanded the exhibitions, adding the first rock drill made inJapan, dioramas from Honzan Primary School that are evocative forthe people of Ashiomachi, and more. Mayor Oshima remarked thattasking Furukawa Co., Ltd. with the museum’s operation would further
stimulate civic activity given that the company had established Ashio
as the best mine in Asia,and the company’s historyof pioneering environmental
measures.

A financial results briefing for analysts

Visit the following site for reference documents for Shareholder's Meeting (text file)https://www.furukawakk.co.jp/e/ir/■ Providing Information Online
Front pagehttps://www.furukawakk.co.jp/e_index.htm

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

From right to left, Honorary Curator Nagai; Director Ogino; President Miyakawa;Nikko City Mayor Oshima; Executive Officer Kuno; General Manager Yamazaki

36

Corporate Information■ Company Profile (as of March 31, 2019)
Company name:

Furukawa Co., Ltd.

Head office:Marunouchi Nakadori Building, 2-3,
Marunouchi 2-chome, Chiyoda-ku,
Tokyo 100-8370, Japan

August 1875

Date of establishment: April 1918
Business:

Machinery business (industrial
machinery, rock drill machinery, Unicmachinery), materials business (metals,
electronics, chemicals), real estatebusiness (real estate, etc.)

Capital:¥28,208.18 million

Fiscal year-end:

March 31

Employees:

2,757 (consolidated)

Rock Drill
Machinery

Materials business

1.7%

0.6%
Industrial Machinery

10.3%

Rock Drill Machinery¥174.1billion(FY2019)

46.0%

16.8%

1,617

1,500

1,676 1,741
1,498

0

Furukawa Metals &Resources Co., Ltd.

2015

2016

2017

2018

2019

1.65%
Foreign institutions

18.59%
Other
Japanese companies

24.95%

Chemicals
Real estate

40

40

20

20

82

66

2018

2019

62

2015

2016

2017

2018

0

(FY)

2016

2017

(100 millions of yen)(100 millions of yen)(100 millions of yen)

50

47

42

2,222 2,153

2,073 1,956 2,080

800

0

870
795
705

682

37.3

600

46

33.2

400

(FY)

(%)

1,000

3,000

2,000

60

Furukawa Chemicals
Co., Ltd.

2015●Net Assets (consolidated)

97

Furukawa Denshi
Co., Ltd.

2019●Total Assets (consolidated)

34.0

38.2

45

804

40
35

36.3

Equity Ratio

30

1,000
25

200

2015

2016

Real Estateand others

2017

2018

2019

0

(FY)

2015

2016

2017

2018

2019

0

(FY)

2015

2016

2017

2018

20

2019

(FY)

■ Net Sales and Operating Income by Sector

Furukawa Co., Ltd.

●Industrial Machinery●Rock Drill Machinery

Numberof shares(thousands)

Stockholding
ratio
(%)

Asahi Mutual Life Insurance Co.

2,373

6.00

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

1,893

4.78

Seiwa Sogo Tatemono Co., Ltd.

1,503

3.80

Name

40,445,568
20,874

The
Yokohama Rubber
Company,
LimitedNet Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome
Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome
20,00020,000
20,000shares
20,000Treasury

2.23(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

10,00010,00010,000
1,711 1,711 1,711

0

30,91130,911
30,37230,37230,37230,372
30,07730,911
30,07730,911
30,07730,07730,20030,20030,20030,200Fuji Electric Co., Ltd. 2,217 2,217 2,217 2,217

750

26,97926,97926,979
25,50025,50025,500

2,250 2,250 2,25000002015 20152016 20152016
2017 201620172018 201720182019 20182019 2019
(FY)

750

●Metals(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)
(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

3,615 3,615 3,615
22,50022,50022,500

3,000 3,000 3,000

897 897 897

750

750

750

0

0

0
0
0
0
2015 20152016 20152016
2017 201620172018 201720182019 20182019 2019
(FY)

(FY)

0

0

0
0
0
0
2015 20152016 20152016
2017 201620172018 201720182019 20182019 2019(FY)●Electronics

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

81,51481,51481,514
80,06880,06880,068
77,33477,33477,334
74,19374,19374,193
75,00075,00075,000
2,250 2,250 2,250
67,85467,85467,854

5,7436,6,000 6,000

4,000 4,000 4,
1,738 1,738 1,738

(FY)

(FY)

(FY)

2,000 2,000 2,
750

750

(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen) (Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

3,000 3,000 3,000 3,000 8,000 8,000 8,000 8,000

3,000 3,000 3,000 3,000 8,000 8,000 8,000 8,000

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

(FY)

0

0

Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen) (Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

600 600

600

(FY)

(FY)

(FY)

(FY)

(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

600 3,600 3,600 3,600 3,600

3,000
3,000 3,000 3,000
3,339 3,339 3,339
3,339
3,0743,045
3,0743,045
3,074
3,074
3,045 3,045
2,999
2,999 2,999 2,999

2,536
2,5362,700
2,536 2,536
450 2,700 2,700
2,700

2,250 2,250 2,250 2,250

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

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

150

0

1,340
1,3401,266
1,340 1,340
1,277 1,277
1,277
1,2661,277
1,266
1,266
1,164 1,164 1,164 1,164
900 900 900 900
750 750 750
776 776 776 776
0

0
0
0
0
0
0
2015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 2019
(FY)

(FY)

(FY)

53
0

2015

(FY)

●Real Estate

Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen) (Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

(FY)

1,500 1,500 1,50000002015 20152016 20152016
2017 201620172018 201720182019 20182019 2019(FY)●Chemicals

Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome

0

0

(FY)

27.15

2. The stockholding ratio is calculated after deducting treasury shares (904,102 treasury
shares).

8,000 8,000 8,

1,450 1,450 1,450
1,155 1,155 1,155
25,00025,00025,000
750
867 867 867

25.43

(FY)

(Millions(Millionsof yen) (Mof

3,000 3,000 3,000

7,500 7,500 7,500

1,000 1,000 1,000

N(Millions(Millionsof yen) (Millionsof yen) of yen)

100,000100,000100,000

50,00050,00050,000

2,789 2,789 2,789 2,789
407 407 407 407
4,000 4,000 4,000 4,000
1,500 1,500 1,500 1,500
2,627 2,627
2,5792,627
2,5792,627
2,579 2,579%
Nipponkoa
Insurance
Inc.1,783
2.12
1,783 1,783
1,783
10,00010,000 10,00010,000
1,500Sompo
1,500 1,500Japan
1,50017,000
17,000 17,00017,000
1,500
1,5001,690
1,500 1,50015,00015,000839
15,00015,000
2,000
2,000 2,000 2,00050,00050,000 50,00050,000
4,000 4,000 4,000 4,000
300 300 300
2,295
2,295 2,295
2,295
1,738 1,738 1,738 1,7381,500 1,500 1,500 1,500
1,690 1,690
1,690
1,711 1,711 1,711 1,711
1,005 1,005 1,005 1,005
2,000 2,000 2,000 2,000
750 750 750 750
1,450 1,450 1,450 1,450
268
268
268
268
1,225 1,225
Chuo Real Estate 1,225
Co.,1,225
Ltd.
687
1.73
408 330
408 330
408 408
330 330
1,155 1,155 1,155 1,155
Financial institutions
53 53
5318 5318
197
197 197 197
750 867
750 750 750
5,000 5,000 5,000
5,000
750 750 750 750 8,500 8,500 8,500 8,500897 897 897 897750 750 750 750 7,500 7,500 7,500 7,500
1,000 1,000 1,000 1,00025,00025,000 25,00025,000
2,000 2,000 2,000
2,000
150 150 150
18 18
867 867 867
1,038
1,038 1,038 1,038
664
1.68
0
0
0
0
0
0
0
0
% 104 104 104 104 Juniper
115 115 115 115
582 582 582 582(368) (368) (368) (368)Note:
1.0 The0 Company
holds
904,102
treasury 0shares.
However,
it0 is excluded
from principal 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
0
0
0
0
0
0
0
0
2015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 2019shareholders 2015
2015
2016
2016
20172015
2016201720182016
2017201820192017
20182019 20182019 20192015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 20192015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 20192015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 20192015 20152016 20152016
20172015
2016201720182016
2017201820192017
20182019 20182019 2019listedas 2015
above.
(FY)(Millions(Millionsof yen) (Millionsof yen) of yen)

2,789 2,789 2,789
2,627 2,627
2,5792,627
2,579 2,579
15,00015,00015,000
2,000 2,000 2,000
2,295 2,295 2,295

6,5286,308
6,5286,308
6,528 6,528
6,308 6,308
81,51481,514 81,51481,514 80,06880,06880,06880,068
6,1276,345
6,1276,345
6,127 6,127
6,345 6,345
5,817 5,817 5,817 5,8172,250 2,250 2,250 2,250
77,33477,33477,33477,334
5,743
5,743
5,743
6,000 6,000
6,000
6,000
74,19374,19374,19374,193
5,9746,014
5,9746,014
5,974 5,974
5,477
5,4775,743
5,477 5,477
6,014 6,014
2,250 2,250 2,250 2,250
3,000 3,000 3,000 3,00075,00075,000 75,00075,000
6,000 6,000 6,000 6,000
450 450 450
67,85467,85467,85467,854
5,298 5,298
4515,298
451 5,298
451 451

2.18

Net Sales
Net Sales
Net Operating
Sales Operating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) of yen)

29,23729,237
29,23730,00030,000
30,0004,000
4,000 4,000
28,36728,36728,367
27,38227,38227,382
27,22927,22927,229
25,78325,78325,783

1,225 1,225 1,225
8,500 8,500 8,500(FY)

Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome

27,382
27,38227,38227,382
27,22927,22927,229
27,22925,78325,78325,78325,783

862

750

1,783 1,783 1,783
1,500
1,500 1,500
1,690 1,690
1,690

17,00017,00017,000(Millions(Millionsof yen) (Millionsof yen) of yen)

582 582 582(FY)% 16,71316,713
16,71316,713
Furukawa Electric Co., Ltd.26,97926,97926,97926,979
877
2.21
15,87215,87215,87215,872
3,615 3,615 3,615 3,615
14,927
14,92714,92714,927
2,089 2,089
2,089
2,089
15,00015,000 15,000
15,0002,250
2,250
2,250 2,25025,50025,500 25,50025,500
2,250 2,250 2,250 2,25022,50022,500 22,50022,500
14,04214,04214,04214,042

Individuals and others

Net Sales
Net Sales
Net Operating
Sales Operating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) of yen)

34,00034,00034,000
3,000 3,000 3,000
30,91130,911
30,37230,37230,372
30,07730,911
30,07730,077
30,20030,200
30,200104 104 104

1,341
3.39
Net Sales
Net Sales
Net Operating
Sales
NetOperating
Sales
IncomeOperating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

1,500 1,500 1,500
1,005 1,005 1,005

5,000 5,000 5,000
1,038 1,038 1,038

Trustee
Services
Bank, Ltd. (trust account)
1,052
2.66
29,237
29,237100,000100,000100,000100,000
3,000Japan
3,000 3,000
3,00034,000
34,000 34,00034,000
3,000 3,000 3,000 3,00030,00030,000
30,00030,0004,000
4,000
4,000 4,000
28,36728,36728,36728,367 29,23729,237

17,97117,97117,97117,971(Millions(Millionsof yen) (Millionsof yen) of yen)

2,217 2,217 2,217●Principal Shareholders(Millions(Millionsof yen) (Millionsof yen) (Millionsof yen) of yen)

3,000 3,000 3,000
17,97117,97117,971

16,71316,71316,713
15,87215,87215,872
14,92714,92714,927 2,089 2,089
2,089
15,00015,00015,000
2,250
2,250 2,250
14,04214,04214,042

80,000,000●Unic Machinery

Net Sales
Net Sales
Net Operating
Sales Operating
IncomeOperating
IncomeIncome(Millions(Millionsof yen) (Millionsof yen) of yen)

20,00020,00020,000

(FY)

37

60

81
72

Electronics●Shares

Securities companies

60

0

(FY)

120

■ Stock Conditions (as of March 31, 2019)●Composition of Shareholders

80●Profit Attributable to Owners of
Parent (consolidated)(Millions(Millionsof yen) (Millionsof yen) of yen)

Number of shareholders:

78
65

Net Sales
Net Sales
Net Operating
Sales Operating
IncomeOperating
IncomeIncome

Number of shares outstanding:

79

80

90

Electronics

100

1,000

Furukawa UnicCorporation

Chemicals

MetalsOthersNumber of shares authorized:(100 millions of yen)

89

89

30

Unic Machinery

Real Estate, etc.

17.4%

Net sales

100

500

Metals

3.5%
3.7%

1,725

●Ordinary Income (consolidated)(100 millions of yen)

2,000

Furukawa Rock Drill
Co., Ltd.

Unic
Machinery■ Departmental Sales Ratio●Operating Income (consolidated)(100 millions of yen)

Furukawa Industrial
Machinery Systems
Co., Ltd.

Industrial
Machinery

Naohisa Miyakawa, President andRepresentative Director

Date of Foundation:■ Financial Data
●Net Sales (consolidated)

Machinery business

Representative:■ Business Domain

750

0

(FY)

38