2022

Intellectual Property ReportContents

1 Management of Intellectual Property

1-1. Intellectual Property Strategy of FEC Group... 3

1-2. Risk Minimization: Intellectual Property Risk Management... 4
1-3. Chance Maximization: IP Landscaping... 5
Activity

Reinforcing and Creating of Business with Intellectual Assets... 6

2 Intellectual Property Activity Framework
2-1. Promotion Framework... 10

2-2. Activity Bases... 11
ActivityIntellectual Property Education and Awards System... 12

3 Intellectual Property Analysis Report3-1. Intellectual Property Portfolio... 13

3-2. Sustainability Indicator (IP Landscaping Implementation Rate)... 15
Activity

Visualization of Strengths by Competitive Technology Map... 16

4 Interviews on Utilization of Intellectual Assets
Creating New Business that Contributes to Carbon Neutrality.. 17
Creating Life Science Business... 19

5 Topics- Participation in the Intellectual Property and Intangible Asset Management Forum... 21- Informal Meeting with the Commissioner of the JPO... 21

Introduction
I would like to welcome you to the intellectual property
report by the Furukawa Electric Group. This reportintroduces, as part of the promotion of intellectual
property management in our Group, our activities toreinforce and create business with intellectual assets
and activities with respect to human resources andorganizations that utilize the intellectual asset.
Based on his wish to “brighten Japan,” Ichibei
Furukawa, the founder of Furukawa Group, said that
we must “Value employees, Value customers, Value
new technology, and Contribute to society.” Since its
foundation in 1884, Furukawa Electric has treasured andpassed on these words in its DNA as it has grown.
In order to inherit this DNA as our Group’s values, wemust accumulate and reinforce the use of intellectual
assets, and we must reinforce human capital andorganizational execution abilities that generate intellectual
assets. This is our Group’s basic concept of promoting
intellectual property management.

FURUKAWA ELECTRIC GROUP

Until now, our intellectual property management
has been based solely on the concept of “defensive
intellectual property,” but from now on, we will also
incorporate the concept of “aggressive intellectual
property” into our intellectual property management.
Furthermore, we will place more importance on theutilization of intellectual assets than ever before as we
strive to contribute to the resolution of contemporary
issues such as carbon neutrality and circular economy.
I hope this Intellectual Property Report will provide
you a better understanding of the intellectual property
activities of the Furukawa Electric Group.

July 2023
Chairman of the Board

Keiichi Kobayashi

1 Management of Intellectual Property
1-1. Intellectual Property Strategy of FEC GroupThe Furukawa Electric Group has adopted the basic policy of defining and utilizing intellectual property as
an important management resource. We promote group-wide and global intellectual property activities with anunderstanding that business, R&D, and intellectual property are one and the same.
Our basic policy consists of the following three pillars:
1

Reinforcing management andbusiness strategy planningcapabilities by IP Landscaping

Reinforce management and business strategy planning capabilities by IP
Landscaping that incorporates, analyses and utilizes intellectual property
information into strategy planning processes.

2

Utilizing intellectual assets with
Open & Closed strategies

Run a cycle*1 that starts from analysis utilization of intellectual property(analysis <--> utilization -> creation -> protection), and formulate/implement
Open and Closed strategies to reinforce business strategies.

3

Stabilizing business by reducing
intellectual property risks

Identify four categories of risks, which are infringement risk, technology
outflow risk, contract risk, and counterfeit risk, as frequent risks with asignificant impact, and continuously reduce such risks to stabilize business.

*1 The basic concept of promoting intellectual property management: In order to enhance
our business, we implement intellectual property strategies for our unique differentiating
technologies and run a cycle starting from the utilization of intellectual property.

Exploitation (New business)

To promote intellectual property management and reinforce our business, we implement intellectual property
strategies for our differentiated proprietary technologies and run a cycle starting with “analysis <--> utilization”
of intellectual property. While understanding changes by environment analysis using IP landscaping, we run
a cycle of activities starting from utilization of intellectual assets with Open & Closed strategies, followed bycreation and accumulation of intellectual assets, and protection of business and core technologies.
To contribute to the realization of a truly prosperous and sustainable society through continuous
technological innovation, we will establish this IP landscaping as a tool for ambidextrous management(management that takes as its two wheels, “Exploitation,” which exploits existing business, and “Exploration”
which develops new business). In other words, among environment analyses by IP landscaping, internal
environment analysis is used for the Exploitation and external environment analysis is used for the Exploration.
With these activities, we will strive for the integrated management of intellectual assets, including not only
conventional intellectual property but also management assets such as human resources, organizational
capabilities, and customer networks.

Ambidextrous management byintellectual assets integrated management
Utilization of intellectual assets
with Open & Closed strategies

Environment analysis
by IP landscaping
IP landscaping as a tool

Protection of businessand core technology
Code of
Conduct
Protection of intellectual
property rights
Management ofconfident information

3
FURUKAWA ELECTRIC GROUP- Internal environment analysis–> Exploitation of knowledge- External environment analysis–> Exploitation of knowledge

Creation andaccumulation of
intellectual assets

Exploitation (Existing business)

1-2. Risk Minimization: Intellectual Property Risk Management
The Furukawa Electric Group’s Code of Conduct stipulates two actions: (1) protection of intellectual
property rights and (2) management of confidential information.
In accordance with the Code of Conduct, we make sure that the intellectual property portfolios are built
and utilized based on detailed competitor analysis and the promote activities to globally reduce intellectual
property risks, such as activities to prevent technical information outflow.
As a system for such risk minimization, we implement intellectual property risk management procedure thatconsists of three steps which are shown below:

2Intellectual property risk communication
Dialogue based on
evaluation

1Intellectual property
risk evaluation＋

3

Determine countermeasurescooperatively- Intellectual Property Department
evaluates intellectual property risks- Intellectual Property Department
proposes risk countermeasuresIntellectual property
risk management- Business divisions prioritize countermeasures- General managers of business divisions
determine implementation of countermeasures- Business divisions and Intellectual Property
Department implement countermeasures

In the step of intellectual property risk evaluation, each priority product of business divisions subject tointellectual property activities is visually evaluated from the viewpoints of whether: (1) an intellectual property
portfolio has been built to prevent any disruption to the business; (2) any rights of other companies are notinfringed by the product; (3) countermeasures for technical know-how leakage are being implemented for the
product; and other viewpoints.
We define the following four categories to classify intellectual property risks and continuously call attention
to risk management to stabilize business execution.

Infringement risk

Technology outflow risk

Regularly and continuously search for othercompanies’ rights information to ensure thatour products do not infringe other companies’
intellectual property rights.

Manage technologies at development andmanufacturing sites and use a timestamp system toreinforce information preservation. Regularly check
external announcements, including news releases.

Aboid risks of direct damage to businesses
and loss of opportunity.

Aboid risks of unintended disclosure ofconfidential information and other risks.

Technology counterfeit risk

Contract risk

Obtain patent rights, utility model rights, design
rights, and trademark rights to protect our
products. Bring an action for injunction or damages
if another company counterfeited our product.

Ensure that every technical contract is reviewed by
the Intellectual Property Department before being
signed.

Aboid risks of loss due to declined market
share or other.

4
FURUKAWA ELECTRIC GROUP

Avoid risks of future disputes concerning
the terms of technical contracts, including
non-disclosure agreements, joint research
agreements, purchase and sale agreements.

1-3. Chance Maximization: IP Landscaping
The Furukawa Electric Group lists “Reinforcing management and business strategy planning capabilities
using IP Landscaping” as the first pillar of its intellectual property strategy.
To promote activities to seek new business fields and business models, we analyze the competitiveenvironment and market environment using the intellectual property information of our own and othercompanies.
As a tool for such chance maximization, we implement this IP Landscaping in the following process.

Non-patent information

IP Landscaping

Strategy

External environment
Internal environment
Patent information

Strategyplanning

Published unexamined
patent applications
Patent publications

What is IP Landscaping?
IP Landscaping has been gathering attention since
its listing in “Intellectual Property Personnel Skills
Standard Version 2.0” released in April 2017 by
the Ministry of Economy, Trade and Industry. This
standard defines IP Landscaping as follows:

Management strategy
Business strategy
Intellectual property
strategy

As opposed to patent maps, IP Landscaping includes researchand development information, trends in management strategies,
technical information on individual patents, and other information
on your company, competitors, and markets. IP Landscaping
provides a broad view of the current status and future perspectives
with respect to the market positioning of your company.

In 2021, the FEC has established a dedicated section in the Intellectual Property Department that utilizes
IP Landscaping to predict market trends, analyze the value in customers’ need and propose strategies for
new business through co-creation with business divisions. To promote co-creation with business divisions,
we apply IP Landscaping to activities (such as marketing activities) which have been regularly conducted byeach business division to ensure effectiveness. We repeat analysis, evaluation, and hypothesis testing basedon patent and non-patent information in accordance with the purposes of management and businesses andreinforce our strategy planning capability in tandem with marketing activities.
Flow of IP Landscaping (Example)
Extract
major players• Extract major applicants frompatent information• Confirm business content,
financial statuses, positionsin the value chain from
non-patent information

Extract
key information
by major player• Extract highly important information
based on patent information- Size of intellectual property
investment- Changes in the intellectual
property strategy- Influence on other companies

Extract targetingand customer jobs
by segment• Test the hypothesis drawn from
non-patent information byholding discussions withother divisions andpropose a strategy

Please refer to “3-2. Sustainability Indicator (IP Landscaping Implementation Rate)” and “4 Interviews on
Utilization of Intellectual Assets” for more information on IP Landscaping.

5
FURUKAWA ELECTRIC GROUP

Activity
Reinforcing and Creating Business with Intellectual Assets
This year marks the 138th anniversary of its foundation of Furukawa Electric Group. Ichibei Furukawa,the founder of the Furukawa Group, introduced the then latest technologies from Western countries to themining industry, and started a cable business based on his wish to “brighten Japan.”“Value employees, value customers, value new technology, and contribute to society.” These are thewords that we have inherited as DNA from our founder.

Value employees
Value customers
Value new technolog yandContribute to society

To realize Furukawa Electric Group Vision 2030, we are determined to become an indispensable
company for solving social issues. The three important things valued by Ichibei Furukawa direct us:“Value customers” and “contribute to society”; To contribute to society, “value new technology,” namely,
reinforce the use of intellectual assets; To “value new technology”, “value employees,” namely, reinforce
human capital and organizational execution abilities. These words represent the basic concept of ourintellectual property management promotion.
We believe that using intellectual assets created by human capital is essential for solving social issues.

Furukawa Electric Group Corporate Philosophy

Today

Forward-looking

2025

Backcasting

Financial targets
Sustainability targets

Value
new technology

2030
Value customers

Contributeto society
Furukawa Electric Group Vision 2030
Social issues

Open, Agile, Innovative

Information

EnergyNew businessmodelsReinforce thestrengths
Ex) Enhance utilizationof intellectual property

Become carbon
neutralRealize next generation
infrastructure thatenjoys universal mobility

Value employees
Strengthen human capitalmanagement and organizational
execution abilities

MobilityNewdomainRealize a circular economy

Form partnerships withdiverse stakeholders

Realize a B5G ※2society

Realize longer
healthy life
expectancy

Partnerships withmultiple stakeholders※2: B5G (Beyond 5G）

Excerpt from Furukawa Electric briefing materials for individual investors (2022)

6
FURUKAWA ELECTRIC GROUP

Our Group’s business segments include Communications Solutions, Energy Infrastructure, Automotive
Products & Batteries, and Functional Products. This section introduces the intellectual assets related tofiber cables, which are major products of Communications Solutions, with a specific focus on rollable
ribbon cables, which are high value-added products.

Communications
Solutions

Optical cable sales in North America

Growth markets and strengths of the
products/technology⇒ Increase sales of high value
added products

Automotive Products &Batteries
Growth markets and strengths ofproducts/technology⇒ Increase sales of highvalue-added products
Promote redundancies/
resilience in the supply chain

billion yen

FY2025

FY2020 FY2021 FY2022

billion yen

billion yen

11.5

Ratio

5.0
％

FY2022 forecast

FY2025 target

Triple sales in FY2025, andachieve further growth in FY2030

2021

2030

Further installation of offshore wind power
Renewable energy(submarine/undergroundcables)Strengthen wide-area
Interconnections

Increase sales
300%

billion yen

Net sales

Operatingincomebillion yen

billion yen

130.0

FY202525年度

Firm order

3.5
％

90%

2,000

305.0

1,000
50%

0

50% thecustomers

Aluminum
30% harness ratio

FY2021 FY2022 FY2023 FY2024 FY2025

Sales revenue from tapes forsemi-conductors

billion yen

16.5

％

5.0

FY2022 forecast

OperatingincomeNet sales

8.5
billion yen

FY2025 target

Net sales

Operatingincomebillion yen

billion yen

165.0

19.5

Ratio

6.1

11.8

FY2022 forecast

FY2025 target％

Excerpt from Furukawa Electric briefing materials for individual investors (2022)

billion yen％

billion yen

FY202525年度

Operatingincome

330.0

Ratio

Ratio

FY2021
21年度

Net sales

Ratio

140.0

Increase sales
1.8 times

FY2025 target

1.0

ApproachingMore than60%

3.0billion yen

billion yen

High
70% probable
order

1,500

OperatingincomeNet sales

4.5

Ratio

Ratio

FY2022 forecast

Wire harness sales revenue
ワイヤハーネス売上金額

40%

1.5
billion yen

％

2,500

Device & process advancements
Enhance the strengths in technology &MONOZUKURI⇒ Continue to provide high performance /well differentiated products

115.0

1.3

Aluminum wire harness use :Expand from 56 models of 6 companies in theend of FY21 to 100 models of 8 manufacturers in
FY25

500

OperatingincomeNet sales（Install submarine DC
cable network)

FY2021
FY2022
21年度 22年度

Continued semiconductor demand
growth⇒ Secure a stable supply network

FURUKAWA ELECTRIC GROUP

Operatingincome230.0％

Functional Products

7

Net sales

3.5

Energy Infrastructure

Respond to offshore wind power andwide-area interconnections⇒ Secure medium to long-termbusiness growth

8.0
billion yen

Ratio

Strengths of the business model
developed in Central & South America⇒ Expand the networking systems
business

Establish a business base in thetarget domains⇒ Leverage the strengths to growprofits

OperatingincomeNet sales

230.0

Triple sales of rollable ribbon
cable

％

< Value customers and contribute to society >Furukawa Electric Group believe that, to achieve a circular economy, we needs to collaborate,
rather than to compete, like an orchestra making music in concert, by resonating our ecosystem withour customers’ and partners’ ecosystems. Intellectual assets act as strengths in this co-creation withpartners, and now we embrace the idea of “aggressive intellectual property” including the use of IP
landscaping in addition to the idea of “defensive intellectual property”.

Contribute to realizing a circular economy by continuing
to invest management resources in creating new value

CO2

CO2

Become carbon neutral throughout the supply chain
3 principles of a circular
economyRealize a circular economy in concert with others

1.

2.
3.

Supplement

Supplement

Partners

Designed to not generate wastematerials or pollution
Can continue using products
and materials
Restores natural systems

SocialissuesCustomers

Co-creation/Collaboration in concert with partners throughresonance between ecosystems
Excerpt from the medium-term management plan briefing (2022)

In the information sector, we aim for business that supports and leads the evolution of informationtransmission and the realization of a sustainable society. As our Vision 2030, we support, throughphotonics technology, increased data traffic following the realization of a beyond 5G (B5G) society, andwe build social infrastructure. Toward this end, as our 2025 Goal, we will realize growth by strengthening
the business designed to solve social issues.
Increased data traffic following realization of a B5G society⇔ Support through photonics technology and build social infrastructure

Vision2030

Leap forward with the creation of social issue solving businesses
Antenna

Expansion into communication+ non-communication fields
SM fiber laser (forsupplying electricity)

Energy lasers

Thin film type low
power consumption
light source

High output
DFB
External
light source

Stratosphere(20km above
the earth)

opticalamplification chip for
siliconphotonics

Highspeed
modulator
module2022

High speed
modulator
moduleUHB-CDM

Obstruction ahead

Ultra-compact
tunable laser
Nano-ITLA

Raman
pump/Amp
Bandwidth
expansion raman
iPump/Forwardpumped U

Data center cooling systems

V2X・5G-AP

Quantum repeater

Realize growth by reinforcing the social issue solving businesses

Expansion of networking
systems (solutions)
Optical fiber
Ultra-high count, multi-corerollable ribbon cable

Today

Realize a B5G society

Antenna

Fusion of photonics & electronics

2025
Goal

Need to take adifferent route
2030

2025

Optical semiconductor chips
for telecommunications

ITLA(Semiconductor laser for
optical communication)

Next generation
PON technology
Virtual routers

PON / routers

Data center cooling solutions
Support the growing
demand for semiconductors

Vapor chambers

Tape forsemiconductor
process

Aluminum blanks(for HDD)

Business developments leveraging metals, polymers, photonics, and high-frequency (wireless)Excerpt from the medium-term management plan briefing (2022)

In response to the rapid increase in the amount of data traffic to be handled, data centers andmetropolitan networks require optical fiber networks of even higher capacity. So-called multi-core opticalfiber cables, which include multiple optical fibers in a cable, are useful in building efficient high-capacity
networks. The conventional technologies, however, are limited in terms of increased density, and the
maximum number of cores is limited by the size of the pipe conduit installed in transmission paths.

8
FURUKAWA ELECTRIC GROUP

< Value new technology: reinforce the use of intellectual assets >We have solved these problems by constructing rollable ribbon that can be made into a rolling formby bonding, at intervals, 12 pieces of optical fiber which have a smaller outer diameter than conventional
optical fibers. As illustrated in the following diagram, our rollable ribbon is constructed by bonding,at intervals, fibers arranged in parallel with resin, and thus can be made into a compact rolling form.
This technology has been achieved thanks to our high technical capabilities and know-how. We haveobtained multiple patent rights, including Japanese Patent No. 7084449. We have filed over 100 patentapplications, domestic and foreign, in relation to this product, and are filing more foreign applications,specifically with North American patent offices.
This technology can drastically increase the core density of optical cables, realizing thin 6,912-core
optical cables, the world’s highest level, and making it possible to install an ultra-high number of fibers in asingle installation in existing pipe conduits.
With global demands expanding especially in North American countries, we are focusing on rollable
ribbon cables as high value-added products.
Resin

A-B cross-section

144-ﬁber bundled unitA

200 µm RR X 12 pieces

B
Resin

Bonding
partA

φ200 µm optical ﬁber

Example:Ribbon No. 12
5When spliced

B

When mounted
in the cable1

Protrusion
Rip cordOuter sheath
Tension member

Structure of a 200 µm 12-fiber rollable ribbon (left),
Barcode printed on the rollable ribbon of No. 12 (right)

Structure of
6,912-core optical cables

Excerpt from Furukawa Electric Review (No. 51)< Value employees: reinforce human capital and organizational execution abilities >Overseas expansion for high value-added products cannot be achieved without reinforcing intra-Group
cooperation. Specifically, we are reinforcing cooperation with OFS, which is a subsidiary in the UnitedStates.
We are also increasing patent applications to America, Europe, and Asia in close cooperation with
OFS’s intellectual property bases. Cooperation with FEL, which is a subsidiary in Brazil, is also underwaywith respect to global trademark applications for the promotion of brands.
Our Optical Fiber and Cable Products Division and Intellectual Property Division work closely with eachother to promote timely creation and application of inventions. Intellectual Property Analysis Section,a newly established section in the Intellectual Department, plays part in this co-creation, analyzing themarket environment and value chain by using IP landscaping.
As described in the following “2-1. Promotion Framework,” such intellectual property activities for“Risk Minimization” and “Chance Maximization” involves a team led by an intellectual property manager,
assigned to each business division or research division, who formulates intellectual property strategies.
The strategy is then subject to co-creation and shared through strategy dialogues with business division
general managers. Furthermore, utilization strategies, including IP landscaping, are proposed and reported
through strategy meetings with executives—including the President—who supervise business execution.

9
FURUKAWA ELECTRIC GROUP

2 Intellectual Property Activity Framework
2-1. Promotion Framework
Our Group has established the Corporate-wide Intellectual Property Promotion Committee, which is chairedby the General Manager of the Research & Development Division. This committee determines cooperate-wide
intellectual activity policies and promotes activities led by intellectual property managers who are assigned toeach business and research division.
Corporate-wide intellectual property strategies are proposed and reported to executives who supervise
business execution—including the President—at an Intellectual Property Strategy Meeting hosted by theGeneral Manager of the Research & Development Division. Activities aligned with the corporate-wide
intellectual property strategies are determined at an Intellectual Property Manager Meeting hosted by theIntellectual Property General Manager. Intellectual property strategies of individual business divisions are
subject to co-creation and shared with business division general managers through Intellectual Property
Strategy Dialogues hosted by the Intellectual Property General Manager.
Such business execution statuses are regularly reported to the board of directors.

Board of Directors
Management strategy

CTO

Hosts theCorporate-wide
Intellectual
Property
Promotion
Committee(annually)

Management Executives

Reporton businessexecution
statusStrategy
dialogue

Business strategy

GeneralManager

Formulation

Corporate-wide
Intellectual
Property Strategy

ProposalBusiness
division
Formulation

Intellectual
Property
Strategy
Meeting

Intellectual
Property
Strategy
Dialogue(several times
a year)(biannually)

Business Division
Intellectual
Property Strategy

SupportResearch & Development Division andIntellectual Property Department

10
FURUKAWA ELECTRIC GROUPIntellectual
Property
Managers

Hosts theIntellectual
Property
Manager
Meeting(annually)2-2. Activity Bases
Activity bases of Furukawa Electric Co., Ltd.
● Intellectual Property Managers (assigned to each business unit and research laboratory)● Bases of the Intellectual Property Department (Yokohama, Chiba, Hiratsuka, and Shiga)● Intellectual property education● Patent awards, invention compensation, etc.
Furukawa Electric assigns an Intellectual Property Manager
to each business unit and research laboratory, and implementsa three-part strategy of business, research and development,
and intellectual property, led by a team consisting of members
from the business units, research centers, and intellectual
property departments. The Intellectual Property Department
has four offices in Japan, and conducts activities in close daily
communication with business units and research laboratories.
Intellectual property education is organized and continuously
implemented in-house. We encourage inventions throughpatent-award and invention compensation and other means.

Shiga
Chiba
Yokohama
Hiratsuka

Activity bases of the Furukawa Electric Group● Designated persons in charge of intellectual property activities (domestic and overseas group companies)● Intellectual Property Department bases (USA, Brazil)● Promoting intellectual property activities
We share Furukawa’s intellectual property policy across all group companies in Japan and overseas.
Each domestic group company has a designated person who promotes intellectual property activities incooperation with Furukawa’s Intellectual Property Department.
Furukawa’s Intellectual Property Department also interacts with the Intellectual Property Departments of
OFS (USA) and FEL (Brazil)
and holds regular meetings.
In addition, we arepromoting intellectual property
a c t i v i t i e s t h ro u g h o u t t h eGroup by providing intellectual
property education tailored toeach company’s needs andproviding patent-award fordomestic and overseas groupcompanies.

11
FURUKAWA ELECTRIC GROUP

Furukawa ElectricIntellectual Property
Department(Japan)OFS Intellectual
Property Department(USA)

FEL Intellectual Property
Department(Brazil)

Activity
1 Intellectual Property Education
To improve skills of individuals, we provide training to gain a better appreciation of the importance ofintellectual property and enable strategic intellectual property activities. That includes:- Five training courses that allow trainees to systemically learn the knowledge they need according totheir work experience- Lectures by leading experts in the field of intellectual property- Proprietary e-learning materials that allow trainees to learn at any time
- Basic training for sales divisions
For overseas group companies, we provide individual training sessions tailoredto local conditions and needs to raise awareness of the intellectual property. We
also regularly deliver an intellectual property newsletter (IP-Newsletter) to all groupcompanies to raise awareness of intellectual property risks and assist them inpromoting their intellectual property activities.
New employee
Education program

Content(1) Introductory course

Outline of intellectual
property system(2) Prosecution basic
coursePatent application(3) P rosecution advanced
courseForeign application
prosecution practice(4) C ontract basic course

Basics of contract(5) Intellectual property
management course

Strategy planning and
Use of IP Landscaping

Lecture by intellectual
property expert

Lecture by invited
outside lecturer

Technical,
Administrative

Middle-level employee
Technical

Administrative

Managerial
employee

Management

2 Awards System
To enhance team motivation, we have President’s Patent Awards system in place for excellent
intellectual property activities that will contribute to the growth of our group.
- [Invention award] for patents that are recognized as having high value.
- [Intellectual property activity award] for excellent intellectual property activities such as strategic patentapplication and technical know-how management.
Other than the Patent Awards, we have various President’s Awards such as Technology Awards,
Sales Division Awards, ESG Awards, and Health and Safety Activity Awards. We receive application fromour overseas group companies every year. Awards ceremonies are global opportunities for technology
exchange where people can share their achievements.
Award
Invention award

Intellectual
property
activity award

Candidate

Evaluation

FY2021

Excellent patent award

Patented inventions recognized as having high value.

(1) Strategic application
activity division

Divisions that strategically filed patent applications byconducting searches for and analysis of patents ofours and other companies.

(2) Technical know-how
proposal activity
division

Divisions that proposed concealment of technicalknow-how, which is recognized as having high value.

Availability, technical value,
strategic value, etc. of knowhow.

1(3) Counterfeit productcountermeasureactivity division

Divisions that achieved outstanding results withcountermeasures for counterfeit products using
trademark rights, design rights, and copyrights.

Discontinuation of sales, andinjunction, etc. against thesale of counterfeit products.

None

12
FURUKAWA ELECTRIC GROUP

Availability, technical value,
strength, etc. of patents andothers.

21

3 Intellectual Property Analysis Report3-1. Intellectual Property Analysis Report
We strive to minimize business risks by protecting our group’s proprietary technologies that differentiate our
products from those of other companies with intellectual property rights and technical know-how.
To achieve growth by reinforcing social issue solving businesses, we build an intellectual property portfolio
based on detailed competitor analysis in the information, energy and mobility sectors. We thoroughly utilize
this portfolio to maximize the revenue of existing business, with a focus on capital efficiency toward 2025.
Expand the intellectual property portfolio
Approximately half of the intellectual property rights (patent rights, utility model rights, design rights, and trademark
rights) held by Furukawa Electric belongs to a portfolio relating to either optical fiber cables (Optical Fiber and Cable
Products Div.), power cable systems (Power Cable Div.), wire harnesses (Automotive Products Div.), or tape forsemiconductor manufacturing (AT and Functional Plastics Div.). In these businesses, we will implement Open andClose strategy for the intellectual property and stabilize business execution by reducing intellectual property risks.

Number of rights held in Japan(Cases)Patents

Designs

Number of domestic intellectual property rights held

Trademarks

Utility models

6,000

Research

Other businessdivisions

9 % 475

33 % 1,736

5,000

Fiber cable

11% 571

4,000

Total
5,175

3,000
2,000
1,000
0

2017

2018

2019

2020

2021

（FY）

Number of foreign rights held
(Cases)AT andfunctional
plastics

Automotive
products

2016

Patents

Designs

15 % 759

28 % 1,438

Number of foreign intellectual property rights held

Trademarks

Utility models

4,000

Research

Other businessdivisions

3,500

8 % 327

40 % 1,547

3,000

Fiber cable

9 % 334

Power

2,500

Total
3,869

2,000
1,500
1,000
500
0

Power

4 % 196

2016

2017

2018

2019

2020

13
FURUKAWA ELECTRIC GROUP

2021

（FY）

Automotive
products

21% 803

1% 49

AT andfunctional
plastics

21% 809

Intellectual property (patent) data
Furukawa
Electric

Patents

FY2017FY2018FY2019FY2020

FY2021

Number of patents held in Japan

Cases

4,644

4,605

4,523

4,388

4,423

Number of patents held overseas

Cases

2,507

2,712

2,910

2,976

3,160

* The increase or decrease in the number of patents includes the results of abandonment of rights for cost efficiency reason which is done periodically.

Number of rights held in Japanas of FY2021

Communications
Solutions

Communications
Solutions

New business-related
domains
Service andDevelopments, etc.

Service andDevelopments, etc. Infrastructure

Infrastructure

Total

EnergyInfrastructure

5,175

Functional Products

FY2012-FY2022 cumulative number oftechnical reports

rights

Total

6,435
rightsElectronics &Automotive Systems
Electronics Component
Materials

New business-related
domains

EnergyInfrastructure

Automotive Products& Batteries

Electronics &Automotive Systems
Functional Products

Automotive Products& Batteries
Electronics Component
Materials

columnThe year of the foundation of the Furukawa Electric Group is recognized as 1884 when Honjo Copper
Smeltery—which was the basis of our Group—and Yamada Cable Works opened. Yoshichi Yamada, the founderof Yamada Cable Works, was an excellent inventor. He is said to be the inventor who obtained Japan’s firstpatent for cables, and he obtained two patents for covered cables in 1892. Ichibei Furukawa, the founder of the
Furukawa Group, directed his attention to Yamada’s inventions—that is, the innovations.

Patents of covered cables invented
by Yoshichi Yamada(No. 1682 and No. 1953,
in the year 1892)

For some time since 1920 when Furukawa Electric was established, we had developed many new products
by actively introducing foreign technology. This was what is known today as open innovation. Records fromthose days indicates that after entering the Showa era, we successively developed a record number of products
including insulated wires, power cables compliant with high voltages, and communication cables. The number ofpatents we obtained also rapidly increased.
The intellectual property portfolio of our Group is an asset that has been accumulated by such innovations since
our foundation.

14
FURUKAWA ELECTRIC GROUP

3-2. Sustainability Indicator (IP Landscaping Implementation Rate)
We seek new business fields and business models through IP Landscaping, which analyzes the competitiveenvironment and market environment including intellectual property information of our own and othercompanies.
In order to realize a leap forward through the creation of businesses that solve social issues, we will promote
the use of IP landscapes in businesses that support next-generation infrastructure and environmentally friendly
businesses while supporting the development of foundations for the creation of new businesses toward 2030.
Implementation of IP landscaping
We have been expanding our intellectual property portfolio and reducing business risks in domain A of Ansoff’s
growth matrix. Going forward, we will put more focus on business reinforcing and/or new business creating themesin the other three domains B to D. We will use IP landscaping to reinforce our ability to formulate management andbusiness strategies to create new value and acquire revenue opportunities.

New business to be realized
by 2030
New

C

Activities for
Chance Maximization

D

Markets

Domains to be reinforced
under the 2025 Mid-term Plan

Existing

A

B

Apply
Risk Minimization
Approach

Existing

New

Products

Indicators and Targets
Materiality: “Open, Agile, Innovative” and “Building partnerships with various stakeholders”
Indicator

ResultTarget(*: Sustainability indicator)

FY2021

FY2022

FY2025The Furukawa Electric Group * IP landscaping implementation rate
for business reinforcing and/or new business creating themes*1

17%

30%

100%*2*1 The business reinforcing and new business creating themes include: i) maximizing the profitability of existing business (e.g., fiber optic cables, power cable systems)with a focus on capital efficiency toward 2025; and ii) establishing a foundation for creating new business (e.g., bipolar lead storage batteries) by 2030.
*2 This means that all projects with respect to the business reinforcing and/or new business creating themes set as of 2022 have been implemented.

15
FURUKAWA ELECTRIC GROUP

Activity
1 Visualization of Strengths by Competitive Technology Map
Our Group’s materiality of revenue opportunities, “Open, Agile, Innovative,” includes innovationand the use of intellectual assets. We will make great strides forward and create social issue solving
businesses through open innovation and co-creation with diverse stakeholders by leveraging our four coretechnologies—metals, polymers, photonics, and high-frequency—which have been cultivated over many
years with our materials capabilities at core.
Four Core Technologies
MetalsSince its foundation in 1884, the Furukawa Electric Group has
accumulated material technologies by expanding from copper
smelting and electrical cables to a wider range of fields. Today,
we have added high-frequency electronics technology tomaterials technologies, and maintain four core technologies:
metals, polymers, photonics, and high-frequency.

Polymers

Four CoreTechnologies
Highfrequency

Photonics

We visualize our Group’s patent groups supporting our major products and core technologies using
a competitive technology map (CTM). The dots on the patent map layer indicate patent families filed by
our Group, the analysis results of which are expressed by contour lines. The areas where patents areconcentrated look like islands in an ocean. Dots located close to each other have stronger technicalrelationships, providing an overview of the portfolio of product development that employs coretechnologies. The points on the major product layer indicate where the products are located on the patent
map layer. The four related core technologies are indicated in their four respective colors. Black dots
indicate technologies in which two or more core technologies are combined. Comparing our Group’s datawith other companies’ data using the CTM contributes to building new partnerships.
Patent groups /Major products
supporting four core technologies● Optical fibers● Fusion splicers● PON/Routers● Heat dissipation andcooling products
Major product layer● Communication andindustrial lasers● Peripheral
monitoring radar● Plugin connectors● Copper foils
● BSS
SRC
●

● Fiber cables● Power cables and aluminum CV cables● Tapes used forthe production ofsemiconductors●Aluminum blanks● Wire harnesses

Patent map layer

Photonics

Polymers

MetalsHigh-frequency

Technologies in whichcore technologies are combined

Created by Furukawa Electric by using Derwent Innovation (provided by Clarivate)

2 Creation of a Technology Roadmap by Professional Human Resources andCreation of Intellectual Assets
To continue solving social issues, it is very important to ceaselessly evolve core technologies, or ourstrengths. Furukawa Electric is widely sharing and disseminating a technology roadmap created mainly by
our professional human resources having high degrees of expertise to actively share and disseminate thedirection of evolution in our technologies that will solve the social issues expected to arise in the future.
We expect that this activity will help us evolve our core technologies following the roadmap and create
and accumulate new intellectual properties.

16
FURUKAWA ELECTRIC GROUP

4 Interviews on Utilization of Intellectual Assets
Creating New Businessthat Contributes to
Carbon Neutrality
Sustainable Energy Succession Project Team
General Manager, Development Department

Masayuki Fukushima

interview
A researcher’s perspective and a manager’s perspective
Fukushima uses two measures when he considers a new research theme.
One measure is whether it is something that has never been done by anyone before. As a researcher,
Fukushima is strongly attracted to pouring his energy into the development of products and technology, rather
than into competing with other companies.
The other measure is whether it is marketable. He thinks that it is much more valuable to provide productsthat have never existed before, and which are needed by society and bought by people, by developing
unprecedented technology.

Commercialization of new technology
Fukushima had engaged in developing unconventional catalyst
technology for fixing a metal catalyst inside a porous material, a fusion ofpolymer and metal technologies, both of which are Furukawa Electric’s
strengths. While developing this special catalyst, Fukushima had thoroughly
explored the values this technology can deliver.
Then, he struck a rich vein in the form of green LP gas. Currently, LP gas
is derived from fossil fuels, recovered from oil and gas fields or separated
during the refining of crude oil. Although Japan and the world, aiming for a
carbon neutral society, understand that the current production method for LP gas exerts a high environmentalload, this is something that is hard to object to.
However, this new catalyst, which enables the production of LP gas from carbon dioxide and methane gas
as raw materials, can cause a stir on this social issue. Fukushima has started seeking a way to commercialize
the production of LP gas from livestock manure that is treated as waste in dairy and livestock industries.
Dairy and livestock industries are not fields which Furukawa Electric is familiar with. Can we secure raw
materials? Can we find a profitable line? Faced with a multitude of problems, we should carefully do what we
can to solve them, one by one, and increase our options.
Fukushima encourages development team members to report and share small mistakes because hebelieves that small changes in direction can be a way of avoiding a major failure.

17
FURUKAWA ELECTRIC GROUP

Fukushima fully utilized IP landscaping in marketing and acquiring the rights to technologies. Patentapplications, no more than 10 of which could be filed by the team, were increased five-fold with thecooperation of the Intellectual Property Department. Reviewing the registered patents, Fukushima finds a
number of ideas and technologies that can be used for future businesses. This, he recalls, is something forofIntellectual
producingfromenough.
livestock manure
which he Businesscannot thank thePropertyLPG
Department

with zeolite-encapsulated metal catalysts

Factors in the social issues thatshould be resolved

Stakeholder trust

Expectations for biofuels, long-life
catalysts, manure disposall

Four CoreTechnologies
Metals

Metal catalyst
supporttechnology
Polymers

Material
processing
technology

Creation of social issue-solving businesses

Development andproposal capabilities
not limited to
specific markets

Build a new business model for biofuel that enables local
consumption of local production, storage and transportation

Local
community

Ramune catalyst™
Several nm

BiofuelPorousmaterial

Catalyst

Help local communities
become independent
Greenhouse gases ( CO2 + CH4 )(LP gas)Realization ofa carbon-freesocietyLocal
community

Clean
energyCatalysts
characteristics

SocialissuesTown planningfor mitigating
disasters

Normal householdenergyLP
GASLivestock manure

Local
community

EnergyEmergency
energyLocal
community

Livestock manure

Dairy & livestock industries

Co-creation partners(Local municipalities, etc.)

Formation of a regional
recycling symbiosis zone

Regional
revitalization& stimulationof regional
economies

Open, Agile, Innovative Partnership
All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2021

Business model for Green LP Gas with Ramune Catalyst™
Technology details: https://www.furukawa.co.jp/en/rd/review/fr053/fr53_02.pdf

3Team building
Fukushima exerts his efforts in concentrating the energy of the people involved. He believes that being
teammates with internal development members and external co-creation partners will generate driving force.
Thus, technologies, rights, and even troubles are shared. Problems are exhaustively discussed, and these
discussions find the best options and the best landing points. He believes this open-minded team building willbe the source of excitement.
These efforts bore fruit at the Ichigo Ichie Tochigi National Sports Festival.
Green LP gas made from biogas derived from cow manure in Tochigi
Prefecture was provided as part of the fuel for the torch (a symbol of theSports Festival, similar to the Olympic flame).
Fukushima always kept in mind when would be the time to stop thisdevelopment if it was necessary to do so. He promoted this project bysetting targets with deadlines, determined to cancel it if any target was notachieved.
Although the path to commercialization of this new business looks rocky,
Fukushima is beginning to see the way ahead.

A few words from Intellectual Property Department staff

Seika Onozaki
I am pleased that our intellectual property activities can contribute tobuilding a team with internal and external members, so that the development
team can realize its throughts to value new technology and co-create withpartners by using intellectual property. The Intellectual Property Department
will continue its efforts to help our Group expand social issue solving
business.

18
FURUKAWA ELECTRIC GROUP

CreatingLife Science BusinessSocial Design & New Business Development Department
Manager, Life Science Section

Junichi Hasegawa

interviewMarketing-centered selection of development themes
Hasegawa is currently seeking ways to commercialize the application of photonics technology to the
medical field. Light has a wide range of possibilities, such as enabling analysis and classification while
minimizing damage to an irradiated object, and exerting intense energy to cut or burn an object.
Hasegawa, who is responsible for creating new business, has been conducting extensive marketing
activities to realize those possibilities. As part of his efforts, he regularly holds study meetings on marketingwith all members of the technology development team, so that every member can fit their theme in aframework and explore the direction of a product that matches a market. Hasegawa believes that engineersdeveloping a new product must bear in mind “the product a market demands”; they should consider, forexample, which company needs the product, whether or not the specifications are sufficient, and whether thecost is reasonable.
He specifically emphasizes voice of the customer (VOC). The process of matching the needs of medicalsites with the seeds of Furukawa Electric is one of his priorities. At the same time, building a network thatenable us to hear what doctors really think is one of his important marketing activities.
The new product Tellumino® is the fruit of these activities.

Power feeder

The position of the device canbe visually confirmed from theoutside the patient’s body.
Tellumino under development for market launch
Tellumino website: https://www.furukawa.co.jp/en/product/development/lifescience/tellumino.html

19
FURUKAWA ELECTRIC GROUP

CoilAn internal transfer that elevated my perspective
Now, Hasegawa is an explorer of a new business, building
up everything from scratch with the exception of photonics. His
marketing-emphasizing perspective, however, was cultivated at hisformer job in the Strategic Planning Department.
Since joining the company, he had been engaged for 20 years
in the development, design, and manufacture transfer of opticalcomponents called optical waveguides. An optical waveguide isa glass component including optical wiring formed on a wafer byapplying a semiconductor manufacturing process. This component
plays an important role in miniaturizing laser devices and requires ahigh level of expertise to manufacture.
Then, Hasegawa was suddenly ordered to transfer to the Strategic Planning Department. The transfer cameas a bolt out of the blue, but it turned out to be a turning point for him.
Hasegawa spent two valuable years in the Strategic Planning Department, getting an overview of all
research and development activities in Furukawa Electric. He recalls that at that time, he was thoroughly
educated in the importance of marketing.
The Social Design & New Business Development Department to which he currently belongs places theutmost importance on market orientation, in other words, whether or not a business can be commercialized.
In this department, he has been practicing the theories that he learned in the Strategic Planning Department
in actual businesses with other parties, and improving the accuracy of market orientation.

STP analysis and IP Landscaping
In analyzing a market in terms of Segmentation, Targeting, and Positioning,
it is crucial to know how to interpret the data. New business themes tend todiverge, and there are moments when every one of them seems promising. It
is not possible, however, to promote all of them. So it is necessary to decide
on a prompt withdrawal as soon as a theme is seen as hard to commercialize.
Hasegawa regards the IP landscaping provided by the Intellectual Property
Department as a valuable information source because it highlights not only
technological information but also possible customers, guiding the course of product development he is totake and helping his decisions of selection.

Shaping the future
Hasegawa recognizes that a vision for the new business creating division involves nurturing next-generation
business while making sales. He repeats the processes of excavating and narrowing down to sort out possible
future technologies, and envisions future product lines while looking for the right time to launch. Hasegawa
expects that connecting the dots of businesses into lines and then into bundles will provide a vision of productbusiness as the destination of component business. With a sense of conviction that the foreseeable future
can be shaped, he has been striving to present a model case of new business creation in Furukawa Electric.

A few words from Intellectual Property Department staff

Hideki Aizawa
I feel that these attractive approaches will lead our Group’s core technologyof photonics to creating new business. We will implement IP landscaping
in an agile way, contributing to the strategy formulation and businessenvironment analysis needed for decision-making.
We aim to realize the shape of the future through co-creation with thedevelopment team.

20
FURUKAWA ELECTRIC GROUP

5 Topics
Participation in the Intellectual Property and Intangible Asset Management ForumThe Intellectual Property and Intangible Asset Management Forum was established on October 24, 2022.
This forum is a place where managers from listed companies discuss the utilization of intellectual property
and intangible assets, and President Kobayashi of the Furukawa Electric Group was appointed as vicechairman. We decided to participate in this forum in great support of the Forum’s founding purpose, which isto provide a forum for discussion for Japanese companies that are trying to change their management styleand implement management utilizing intellectual property and intangible assets.
Learning from other Japanese companies through dialogues and proposals in the forum, we will work on“aggressive intellectual property” and contribute to achieving innovation and regeneration that will revitalize
Japan with intellectual property.
 or details, please visit the Intellectual Property and Intangible Asset Management Forum website of■F
Human Resources Governance Leaders Co., Ltd.

https://www.hrgl.jp/service/ipforum/

Informal Meeting with
the Commissioner of the JPO
An informal meeting between Koichi Hamano, Commissioner of
the Japan Patent Office (JPO), and President Kobayashi was held on
December 14, 2022, where they talked about intellectual property
strategies and other topics.
President Kobayashi explained our specific efforts in terms of the Along with the statue of Furukawa Ichibei,
the founder of the Furukawa Group
following two perspectives: risk minimization to stabilize business through From left: President Kobayashi,
the formation and utilization of IP portfolio; and chance maximization to Commissioner of the Patent Office Hamano
better formulate management and business strategies through the utilization of IP landscaping.
Commissioner Hamano shared the sentiment of our group’s message: “IP is at the core of our businessstrategy.” The informal meeting was a very valuable opportunity for us to reaffirm that intellectual property is
an indispensable part of our Group’s management strategies.
■ For details, please visit the photo gallery on the JPO website

https://www.jpo.go.jp/news/ugoki/202301/2023012301.html

On the occasion of Iissuing the Intellectual Property Report 2022
“IP is at the core of our business strategy” is thephrase by which President Kobayashi expressed his
commitment to “valuing new technology”, which is oneof the three important things that we value. To realize of
this slogan, our Group will promote intellectual property
activities in terms of both risk minimization and chancemaximization.
As to chance maximization in particular, IP landscaping
implementation rates for important projects have been
set as a sustainability indicator to use IP landscaping
as a driving force toward the 2025 Mid-term Plan. We
sincerely hope that these activities will result in our21
FURUKAWA ELECTRIC GROUP

enhanced corporate value, and furthermore, contributeto solving social issues.
We hope that this report will provide you witha better understanding of the intellectual property
activities of the Furukawa Electric Group.

July 2023
Senior Fellow, General Manager,
Intellectual Property Department

Michio Ohkubo

Drawing on more than a century of expertise in thedevelopment and fabrication of advanced materials,
we will contribute to the realization of a sustainable
society through continuous technological innovation.

2022

Intellectual Property ReportIntellectual Property Department