Top Message

Contributing to the achievement ofa sustainable society,through the technological innovation
firmly looking ahead for the future.
President
Keiichi Kobayashi
Furukawa Electric Co., Ltd.

Photo Yu Kaida

Wha t about the progress o f the mid-term
management plan and the future outlook?
The Group launched the mid-term management
plan “Furukawa G Plan 2020” in Fiscal Year (FY) 2016
and was strengthening the focused areas of theInfrastructure Business (the telecommunication and theenergy) and the Automotive Business. In FY 2017, wewere able to achieve the financial target for FY 2020
ahead of the schedule in the Plan, then the mid-term
management plan was revised during the period andthe higher target was set. We will continue to keep
the following main policies “Strengthen and reformthe business”, “Expand sales in the global market”
and “Step up efforts to tap into new markets” and will
surely achieve the new targets by answering to various
technological innovation and business changes in theinfrastructure and automotive fields and the fusion areaof both fields. Human resources are the foundationof this. We will engage in a planned development ofcorporate manager candidate including overseas
subsidiaries. By nurturing human resources across theGroup, we will build a system in which the group willcontinue to grow globally.
New financial target in FY 2020
Conventionaltarget value

New target value

Consolidated operating
incomeOver 40billion yen

Over 55billion yen

Net income attributable tothe owners of the parentcompany

Over 20billion yen

Over 30billion yen

Over 8%Over 10%ROE

6FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Technological innovation is progressing at an
unprecedented speed. How will you respond?
I f eel the swell of technologies such as AI(Artificial intelligence), 5G (Fifth generation mobile
communication system) and Automobile CASE
(Connected, Autonomous, Shared, Electric) that
substantially changed the industry until now. It seems
that business opportunity will rapidly spread in theareas of the smart communication infrastructure, thediversification of the energy infrastructure, the areaof the green automobiles and their fusion areas. For
instance, in the utilization of the renewable energy andfor the stabilization of the power system, the electricity
storage technology and the information communication
technology are required. Further, in order to automate
the automobile driving, the automobiles are developed
as information terminals by integrating the information
communication and automobiles, such examples areactually created.
For 134 years, the Company has created products
and services to protect the health of the people andtheir social infrastructure and to support their growth,through our technologies “to transfer, to connect andto store” “energy, information and heat”. I am taking
pride and believe that an era has come when we cangreatly contribute to the future social changes andtechnological innovations by taking the most advantageof these technological capabilities and experience. TheCompany has a lot of business opportunities.
However, in order to create the technologicalinnovation in the technologies fusion area, open

innovation is necessary instead of being stacked toour own technologies. For this purpose, Fun Lab has
been established in Yokohama R&D Laboratories
as a place to bring in new innovations through“Comprehension”, “Cooperation” and “Collaboration”
with our guests. Also, in collaboration with theNational Institute of Advanced Industrial Science andTechnology (AIST), “Carbon nanotube electric wiredevelopment” is conducted and since this February,a Social Cooperation Program “Creation of NextGeneration Signal and Power Transfer Technologies”
has been started at the University of Tokyo. Thus, weare engaged in activities to develop businesses withnew ideas by combining our new material technologies
with the academic knowledge of the university.

In recent years, Environment, Society andGovernance (ESG) management has been focused.
What do you think about this?
Our corporate philosophy is to “Drawing on morethan a century of expertise in the development andfabrication of advanced materials, we will contributeto the realization of a sustainable society throughcontinuous technological innovation”. We have aimed
to realize a rich and sustainable society by protecting
the environment through our business. We arepromoting ESG management in various ways for ourown sustainable growth for the future.
For instance, regarding the environment, we arecontributing to the prevention of global warming
through various activities, including reduction of CO2
emission by supplying lightweight products such as thealuminum wire harness for automobiles, the utilizationof the renewable energy from the hydro power
generation of Furukawa Nikko Power generation Inc.
of the group company, the energy saving based on
the energy balance and promoting the solar powerusage. Also, aiming to “Nurture human resources atevery level, so that we can become a more diverseand creative organization” as listed in the management
philosophy, we are developing an environment andcultural climate in which diverse human resources areactive by setting “Goals for promoting women activities”
and supporting women’s career development. Asfor the corporate governance that supports thesevariety of activities, we regard it as the most importantmanagement foundation for the Company and we arestrongly promoting the activity to strengthen such as
the establishment of the basic policies at the corporate

governance, the annual evaluation and the disclosureof the results in order to improve the effectiveness of
the Board of Directors and increasing the number ofoutside directors.
In addition, although we have just started to makea study, we will proceed with our activities in fullconsideration of “Sustainable Development Goals(SDGs)” adopted by the United Nations in 2015,
and we are going to expand business opportunities
with a long-term business vision, in conjunction withcontributing to solving global environmental and socialproblems. As for the Company, among the themes ofSDGs, we believe that we can contribute to such as“ensuring access to a sustainable and modern energy”,“building resilient infrastructure including informationand communication” and “ensuring sustainableproduction and consumption patterns”.
From now on, we clarify the relationship between
the business and products of the Group and ESG
and strengthen the information dissemination of ourconcrete activities. Furthermore, we intend to strive forthe improvement of the corporate value by integrating
ESG into our management strategy and throughdialogue with investors as well as various stakeholders.

Finally what is important to keep the company
sustainable?
Ichibei Furukawa, the founder of Furukawa Group,
said “Let employees be important, customers beimportant and the new technology be important.”
I believe “The three importance” is a fundamental
culture that still works today, in order to remain as asustainable company. While adhering to this spirit,
striving to ensure safety, quality and compliance, these
are absolute conditions for the Company to survive.
Then, making discussion with internal and external
people with an open mind by watching changes in thesociety from a broad perspective, creating products
and services that can solve customer’s and society’sproblems with a new technology, working “excited” asour own pleasure for customer’s pleasure, having pride
and responsibility for what we have sent out to theworld, then maintaining to be in such a virtuous cycle,
I believe that we can continue to be a sustainable
company and an indispensable part of the society.
Last but not least, I appreciate your continued
understanding and support for the Group.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20187