Furukawa Electric Group Sustainability Report 2013

Initiatives for Society
Relations with Our Customers
Basic Approach
Each of the Company's divisions has acquired ISO 9001 certification. Through initiatives such as these to standardize
our operations and work consistently to improve quality, we are striving to contribute to society by providing
excellent-quality products and services from a customer perspective.
Going forward, we will continue endeavoring to further enhance “quality power” throughout the Furukawa Electric Groupby developing products that are attractive to our customers, based on a policy of Group-focused management.

Quality Management Policy
At every stage of our operations, from research and development to manufacturing, sales,customer service and management, in all sections and all hierarchies, we always strive to adhere toa PDCA management cycle based on actual facts, maintain and improve our products, customer
services and the quality of our operations and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established the Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at the Group level. Directed by this committee,
Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or improve thequality of our products, services and operations.
Promotion Framework

Activities in Fiscal 2013: Reducing Customer Complaints
In fiscal 2013, we continued activities that place the utmost emphasis on quality while endeavoring to manufacture
excellent products from the customer's perspective. As a result, we achieved our objective of reducing the number ofcustomer complaints throughout the Company by 10% or more compared with the previous year. At this point, we have
reduced the number by 93% compared with their level of 10 years ago.

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Furukawa Electric Group Sustainability Report 2013

Customer complaints (Furukawa Electric)(note) The figures show the percentage of customer complaints, taking fiscal 2002 levels as 100%.

Fiscal 2014 Initiative: Strengthen Fundamental “Quality Power”
In fiscal 2014, we have introduced the Furukawa Electric Group Quality Policy, which calls for the strengthening offundamental “Quality Power” to enable the “materialization of attractive products for customers”. We have introduced
three measures for realizing this policy.

Three Measures•

Strive to “put quality into our products during the designing process” and “thoroughly complete our
products’ quality activities during the manufacturing process”•

Distribution of various quality information such as customer information, corrective action andimplementation of solutions equally among the Furukawa Electric Group•

Decrease quality risk of “3H” products (3H products: Products that are being manufactured for the firsttime, being changed or being produced for the first time in a long while)

Ongoing Improvement Activities at Individual Worksites
The Furukawa Electric Group conducts bottom-up quality improvement
activities, forming its worksite employees into circles and promoting“QC Circle Activities” that seek to resolve a variety of problems. The
results of these activities are shared at Groupwide competitions held
once per year.
In fiscal 2013, this competition convened at the Company’s Nikko
Works. Eight circles from Japan and three from overseas reported on
their activities. The circle from Furukawa FITEL (Thailand) Co., Ltd.
(FFT), our affiliated company in Thailand, received the gold award for its
activities, indicating that QC Circle Activities are also becoming
entrenched at overseas worksites and helping to raise the quality level
throughout the Group.

53

FFT (Thailand) QC Circle receiving the gold award

Furukawa Electric Group Sustainability Report 2013

TOPICSFURUKAWA Innovation Expo 2012 Held in Jakarta, Indonesia
The Furukawa Electric Group aims to expand its trade area in growing global markets, working to increase its overseas
sales ratio to 50%. To accelerate our developments in overseas markets, particularly emerging markets, since 2009 wehave held Furukawa Group technology exhibitions in Bangkok, Thailand, and in Shenzhen and Shanghai, China, topromote our technologies and products.

In fiscal 2013, we held the FURUKAWA Innovation Expo 2012 in Jakarta in July 2012. This comprehensive technology
exhibition of the Furukawa Group was aimed at expanding our trade area and heightening our presence in emerging
markets, notably in Indonesia and the ASEAN region. Taking part were PT SUCACO Tbk. (Supreme Cable Manufacturing& Commerce), an important partner we have been working with for some 40 years, and 27 Group companies, including six
local entities. We exhibited 56 products and technologies in the three categories of environment/energy,
automobiles/car electronics and communications.
Going forward, we will continue to reinforce our overseas marketing function across the Group, based on our policy ofstrengthening global Group management. By focusing on the proposal of solutions, we will strive to showcase thecomprehensive power of our group and enhance customer satisfaction levels.

FURUKAWA Innovation Expo 2012②FURUKAWA Innovation Expo 2012①

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Furukawa Electric Group Sustainability Report 2013

Relations with Our Shareholders
Information Disclosure Policy and IR Framework
The Furukawa Electric Group Basic Policy on CSR requires that the Group seeks to improve upon the sound, friendly
relationships we maintain with all of our stakeholders. Our Own Regulations on the Timely Disclosure of Corporate
Information meanwhile set out a framework for the disclosure of appropriate information at the appropriate time.
Based on this policy, all IR activities are conducted by the Investor & Public Relations Department and overseen by the
director in charge of IR, who is General Manager of the Finance & Procurement Division.

Relations with Institutional Investors and Securities Analysts
In addition to holding management briefings (covering interim and year-end
results and mid-term plans when announced) for institutional investors andsecurities analysts, we actively encourage communication all year round.

Briefing for institutional investors

Relations with Individual Investors
In October 2012, we held our fifth plant tour for individual investors. Visitors were selected by lottery from among those
who responded to an open invitation, with 84 people invited to attend out of the 1,295 who responded. During the tour,
we offered participants a number of opportunities to get a feel for Furukawa Electric. We introduced our production
processes for copper products and visited a hydroelectric power station. The tour also featured a simple explanation on
the phenomenon of superconductivity.
[Related Information] IR Calendars
http://www.furukawa.co.jp/english/ir/event/index.htm

Superconductivity experiment (Explanation including experience ofthe phenomenon of superconductivity)

Copper rolling plant (A close-up look at the hot-rolling process)

Returning Profits to Shareholders
The basic policy of the Company is to pay stable dividends and, at the same time, distribute profits to shareholders
commensurate to its future business operations, with an eye on future income trends from a long-term perspective.
During the fiscal year ended March 31, 2013, the Company elected to forgo the interim dividend in order to recover its
operating performance and improve its financial constitution. The Company awarded a year-end dividend of ¥3.0 per
share.
[Related Information] Stock and Dividends Information
http://www.furukawa.co.jp/english/ir/stock/index.htm

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Furukawa Electric Group Sustainability Report 2013

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric's Group purchasing policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis. Based on this policy, Furukawa Electric strives to create cooperative
relationships based on mutual trust with its business partners, thereby contributing to sustainable future development.
[Related Information] Furukawa Electric Group Procurement Policy
http://www.furukawa.co.jp/sizai/english/std.htm

Conducting Training on Subcontracting Transactions
In order to forge sound relationships with business partners through fair transactions that comply with rules andregulations, the Furukawa Electric Group provides training for employees on subcontracting transactions.
In fiscal 2013, in addition to continuing with the courses we have conducted to date, we introduced the second segmentof an e-learning series. This program is aimed at ensuring thorough awareness of the content of the Act against Delay inPayment of Subcontract Proceeds, Etc., to Subcontractors (Subcontract Law).

Partner Meetings and Partner Evaluation Scheme
The Company seeks to deepen awareness among our business partners through regularly held Partner Meetings, where
we explain the state of the Company, our purchasing policy and individual company management strategies. For fiscal
2013, this meeting was held in June and was attended by 92 key business partners.
We also evaluate key business partners on the basis of quality, technology, price,delivery system, degree of social contribution and financial condition, and then holdmeetings to provide feedback on our findings. In addition, we discuss the results of ourevaluations with them to more closely align our awareness of procurement activities.
Furthermore, based on the results of these evaluations and lessons learned throughour experience of the Great East Japan Earthquake, we requested ongoingcooperation from certain business partners on business continuity and stable supply
initiatives.
In fiscal 2013, we evaluated some 300 business partners and provided feedback to them.

Partner Meeting

Promoting CSR through Procurement Activities
Based on our CSR Deployment Guideline for Business Partners, we work with our business partners on an ongoing basis
on initiatives to ensure that our procurement activities involve thoroughly compliant and fair transactions and take into
account human rights and safety, and consideration for the environment.
[Related Information] CSR Deployment Guideline for Business Partners
http://www.furukawa.co.jp/sizai/english/guide.htm

Conflict Minerals(note1）
We have addressed the issue of conflict minerals by formulating a Group policy entitled the Responsible Sourcing ofMinerals and updated our CSR Deployment Guideline for Business Partners. We distribute these to Group companies
and business partners to ensure their awareness.
Going forward, in addition to requesting the cooperation of Group companies and our business partners on these efforts,
we will work with the Japan Electronics and Information Industries Association (JEITA), an industry organization, on
initiatives targeting the responsible sourcing of minerals.
(note 1) Defined as minerals (tantalum, tin, gold, tungsten or their derivatives) that originate in or near the Democratic Republic of the Congo
that may help to finance armed conflict.

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Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Personnel Management Policy/Human Resources Development

Personnel Management Policy
Our basic personnel management policy focuses on continuously creating human resources who are capable of putting
the Five Principles of the Furukawa Electric Group Credo into practice on their own initiative.

THE FURUKAWA ELECTRIC GROUP CREDO
1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3. Take a hands-on approach that addresses the reality of every situation - in the office, at the factory,
and on site.
4. Be proactive - take the initiative and work with others, persevering until a solution is found.
5. Maintain open channels of communication between departments and divisions, so that we can shareideals and help each other grow.
In other words, we believe that a workplace environment that encourages among all employees compliance andconsideration for human rights serves as the foundation upon which employees can maximize their capabilities. On thisbasis, we are devising and introducing a personnel system that will harness employees' diverse abilities and personalities.
This should encourage employee creativity, setting the cornerstone for “continuous technological innovation.”
As part of this initiative, we are cultivating a powerful workforce that will enable us to emerge victorious amid stringent
global competition. We are raising this as a constructive mission for building collaborative ties with affiliates in Japan andoverseas, and are augmenting current measures and putting new ones in place accordingly.
The new medium-term management plan, which commences in fiscal 2014, focuses on measures to strengthen top
management and improve the corporate culture and bottom-up human resource measures, with the aim of shoring up
our base in preparation for groupwide growth in a fast-changing operating environment. Specifically, we will clarify with
employees their skill development directions, introducing individual measures from two main perspectives: the humanresource system categories of recruiting and assignment, evaluation and compensation, as well as the category of skill
development, involving redoubled training of global human resources.
Principal Measures Pertaining to the Group's Global Management
1.
Measures to Strengthen Top Management

Measures to Improve the Corporate Cultureand Bottom-up Human Resource Measures

3.

Review performance evaluation structures and compensation systems (directors andmanagers)
Introduce succession plans to create a human resources database and assign personnel
strategically
Implement a strategic execution support program for top management, etc.

1.
2.
3.

Formulate and execute a basic policy on skills development and new assignment standards
Conduct training to expand the pool of employee candidates to be stationed overseas
Establish sites to handle management of overseas bases (Asia, China, etc.), etc.

2.

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Furukawa Electric Group Sustainability Report 2013

Human Resources Development
Enhancing Educational Programs
We are undertaking initiatives that further management's aim of training human resources suited to steadily execute
Furukawa Electric Group reforms. We have prepared a number of learning opportunities, including conducting training
courses and e-learning and supporting efforts to earn qualifications, in our bid to cultivate human resources who canthink and act for themselves. In this manner, we are working to encourage personal growth and maximize ourorganizational capabilities, while at the same time promoting a mindset that emphasizes Group management.
Training system [Furukawa Electric recruiting page] (PDF 1,604KB)
http://www.furukawa.co.jp/english/csr/social/training.pdf

In rank-based training, we hold workplace discussions and strive to link observations to actions, rather than conducting
one-off training. Our OJT Leader System seeks to go beyond differences in age and rank in promoting a sharedawareness of issues, targeting organizational reform through the practice of operating an organization and cultivating a
sense of cooperation. For middle-ranking leaders, we conduct training designed to help them analyze situations logically,
identify issues and plan measures to resolve them, as well as honing the sensitivity that leadership requires. We include
employees of affiliated companies in each of these training programs to foster a sense of group among our humanresources.

Training Leaders Suited for the Global Environment
We launched the Global Business Leader Training Program in fiscal 2007 for the training of future management personnel.
More than 100 graduates of this program are currently at important posts in Furukawa Electric and at our affiliates inJapan and overseas.
In fiscal 2014, we have launched the Global Mindset Program (GMP) to cultivate human resources capable of operating
on a global stage. This program hones global awareness and an understanding of diversity, as well as training participantsin identifying and resolving issues on their own. We are expanding the program, focusing in particular on global training forpeople assigned to overseas positions and in roles that support overseas operations.
Among our training programs for local employees of overseas affiliated companies, in fiscal 2011 we began conducting
the Global Development Program (GDP) in Japan for leaders at overseas companies. The program aims to deepen theirunderstanding of the Furukawa Electric Group and encourage their interaction with Japanese employees, energizing bothgroups and cultivating an international sense.
Global Human Resources Training System

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Furukawa Electric Group Sustainability Report 2013

Among our training programs for local employees of overseas affiliated companies, in fiscal 2011 we began conducting
the Global Development Program (GDP) in Japan for leaders at overseas companies. The program aims to deepen theirunderstanding of the Furukawa Electric Group and encourage their interaction with Japanese employees, energizing bothgroups and cultivating an international sense.

Global Development Program presentation

Group photo

Strengthening the Genba-Ryoku Project
Since fiscal 2009, Furukawa Electric has been pursuing initiatives to bolster the manufacturing capabilities of its
production sites. These activities focus on cultivating genba-ryoku (worksite capabilities) by encouraging people at its
production sites to think for themselves and act on their own initiative for the good of the customer.
We established the Genba-Ryoku Enhancement Training Center at the Yokohama Works in September 2010 for a variety
of Group training programs. Specifically for new recruits, we conduct programs for both technical and businessemployees. These include the Joy of Manufacturing, which provides onsite experience, and Craftsmanship Training,which fosters recognition of the dangers of the production site.
In fiscal 2012, we set rank-specific goals for employees at production sites and commenced a Basic Program aimed atraising skill levels for all these employees. We put up posters and distributed “genba-ryoku” badges to employees
undergoing training, encouraging them to put into practice the things that they had learned.
At each manufacturing works, we also conduct Chief Operator Training, as well as training for mid-level operators andyounger staff. This training helps to transmit core knowledge at production sites, raise worksite awareness andencourage people to pass on technologies and skills by providing an opportunity for headquarters and Group company
employees to interact without regard to affiliation, these efforts support the sharing of expertise. Personnel fromdomestic affiliated companies also participated in this training, which was part of an initiative to enhance “genba-ryoku”
throughout the Group. This initiative is already underway at some overseas affiliated companies, as well.
People Undergoing Genba-Ryoku Reinforcement Training
Fiscal Year

Participants

FY201087 people

FY2011

121 people

FY2012346 people

FY2013511 people(note) Includes participants from Group companies

Experiencing dangers during
monozukuri (manufacturing)training

Basic Program training underway

Badges with the “genba-ryoku”
logo distributed to trainees

59

2S drills at China FAZ

Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Diversity
Diversity in Hiring
Furukawa Electric is actively recruiting non-Japanese personnel and international
students to support the globalization of our business. We also host students on
internships from overseas universities.
The Furukawa Electric Group has a number of initiatives underway to recruit talented
personnel. In addition to information exchanges to share know-how on hiring within theGroup, we hold the Furukawa Electric Group Forum, at which we conduct briefings inconjunction with Group affiliates, and work proactively to demonstrate to students the
Furukawa Electric Group's appeal.

Explaining the content of ourbusiness to international students

Hiring the Disabled
Furukawa Electric established Furukawa Newleaf Co., Ltd. as a special subsidiary in 2004 to actively employ people withlearning disabilities. This is one of our efforts to increase the percentage of people with disabilities that we employ.
The company handles cleaning operations at the compounds of our works and currently employs a total of 32 people withdisabilities, 11 at the Hiratsuka Works and 21 at the Chiba Works. The company also provides individualized guidance on
everything from matters of daily conduct in the company through the building of good human relationships to assist
people with learning disabilities in becoming independent members of society.
We also invite caregivers with children with no work experience to tour our work and guidance sites, so as to better
understand our efforts involving the employment of people with disabilities.
Although our employment ratio of people with disabilities was 1.94% in fiscal 2012, exceeding the statutory target, we areworking to increase this employment ratio further by expanding the operations conducted by our special subsidiary,complying with revisions to the law in April 2013.
Ratio of employees with disabilities (Furukawa Electric)

Furukawa Newleaf Co., Ltd., employees in action60

Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Upgrading and Enhancing Workplace Environments
Volunteer Leave System, Refresh Leave System
To support individual employees' efforts to participate in social contribution activities, we have in place a Volunteer
Leave system for people who have been employed for one year or more. When we introduced this system in 2011, it waslimited to volunteers in support of restoration and reconstruction activities following the Great East Japan Earthquake.
We lifted this restriction in May 2012, expanding its use to uncompensated social contribution activities. Going forward,
we plan to continue supporting employee participation in social contribution activities.
Also, in 2011 we inaugurated a Refresh Leave System whereby employees with at least 25 years of experience can takefrom 14 through 31 consecutive leave days per year. Taking this sort of leave is designed to help workers enliven theirperformance, give them an opportunity to review work we handle as an organization and enhance their work life balance(the balance between work and home life).
My Volunteer Activity Report

I participated in the 2013 Reconstruction Support Soccer
Festival.
Masayuki Hanamitsu
Production Department, Fitel Products Division

I took four days of volunteer leave from March 25 to take part in the 2013
Reconstruction Support Soccer Festival (Shisui, Chiba Prefecture)
This seven-team interleague series included two high school teams from Fukushima
Prefecture that were invited to take part, as well as five other teams from Chiba and other prefectures. Our goal was tobring smiles back to the faces of people from Fukushima through soccer. Although I think they enjoyed the matches, you
could see from their eyes that they are still battling uncertainties. But at the same time, their struggles gave me thestrength to persevere in a forward-looking way.
I believe that expanding the Volunteer Leave System to allow a wide variety of volunteer activities in addition to support
reconstruction will enable us to play at least a small role in expanding the circle of support to the workplace andthroughout the Company.
My Refresh Leave

I came back refreshed in body and spirit!
Yasuhiro Tanaka
Strip Manufacturing Section, Production Department, Copper and High
Performance Material Products Division

I took refresh leave for about three weeks, starting April 20. During my time off, I joined neighborhood families inbarbecues, attended a class observation day at my children's school and enjoyed an outing with my family to Kawachi inthe city of Sakura. This leave was an extremely meaningful time for me.
During the days when the rest of my family was out, I took my car for a drive, washed it and caught up on my hobbies.
Sometimes I just relaxed, watched television and enjoyed having some time to myself. The refresh leave allowed me todo things with my family that I don't often have time for, and I came back refreshed in mind and spirit.
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Furukawa Electric Group Sustainability Report 2013

Human Rights Awareness
The Furukawa Electric Group CSR Code of Conduct stipulates that we work to respect human rights, prohibiting
discriminatory treatment and human rights infringement as well as prohibiting harassment. We have also established aconsultation desk concerning human rights concerns that can be accessed from within or outside the company, andconsultations by employees are promptly responded to jointly by the HR & Administration Department and the CSR
Department in the event that issues are reported. As of the end of fiscal 2013 there had been no cases of involving
human rights concerns within Furukawa Electric.
Furthermore, from the perspective of prevention, we have in place a rank-based training curriculum, including executives
and managers at affiliated companies. The curriculum centers on raising awareness, covering such matters as prohibitionof discrimination against female employees, promoting employment of seniors and people with disabilities, and improved
understanding of Japanese social integration issues.

Improving the Working Environment through Labor-Management Opinion Exchanges
Furukawa Electric maintains a basic position that both labor and management should endeavor to engage in sincere
discussions, and therefore we focus on issue resolution and deepening mutual understanding.
We hold our Central Management Briefings twice annually for public exchanges of opinion between labor andmanagement. We have conducted such meetings for 61 years, since 1952. As of May 2013 we had held these briefings
121 times. Representatives from labor and management exchange frank opinions and share information about a broad
spectrum of items at these briefings, such as the business environment, management, and topical matters.
We also have in place various committees such as the Personnel System Exploratory Committee and the Committee forStudying Shorter Hours that are designed to improve the working environment, which management and labor discuss ona daily basis. These discussions lead to improvements in various systems and strengthen monitoring functions, such ascompliance response and the implementation status of other CSR activities.

Relations with Our Employees

Occupational Health and Safety
Occupational Health and Safety Management Promotion System
In line with the new medium-term plan's policy of strengthening Group management, we have revised our activity
promotion structure. To this end, in fiscal 2014 we have established the Furukawa Electric Group Occupational Healthand Safety Committee, chaired by the president. This committee, comprising members of management, deliberates,
determines and follows up on policies and measures related to occupational health and safety activities throughout theGroup.
Promotion Framework

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Furukawa Electric Group Sustainability Report 2013

Status of Activities and Future Initiatives
Looking at our safety record during fiscal 2013, we failed to reach our target of one or fewer accidents requiring leave, as
four occurred. As a result, we have set about reforming our corporate culture to keep from taking a backward step on
our safety record and strengthening initiatives toward our goal of zero accidents and zero hospitalizations.
The core tenets of our basic policy for fiscal 2014 naturally include legal compliance, focusing as well on content linked
with reforming the corporate culture, such as ensuring human and essential safety.
Specifically, we have set forth the following six items.
1. Work to eradicate accidents by following the spirit of occupational health and safety laws
2. Lower disaster risk by ensuring essential safety
3. Cultivate safety human through communication and the 5Ss
4. Employ a health and safety management system, and achieve independence through self-diagnosis,
maintenance and improvement
5. Target health and a pleasant workplace through mental health measures and measures to counter
metabolic syndrome
6. Introduce smoking measures aimed at stopping smoking during working hours

Acquisition of Occupational Safety and Health Management System (OSHMS) Accreditation
The system that Furukawa Electric Group has constructed has demonstrated its effectiveness in preventing labor
accidents. We are promoting the creation of this system and its third-party accreditation.
As of March 31, 2013, we had acquired management system accreditation (note 1) at the following sites.
Company

Site

Date acquired

Furukawa Electric Co., Ltd.

Chiba Works

January 13, 2009

Furukawa Electric Co., Ltd.

Hiratsuka Works

November 15, 2010

Furukawa Electric Co., Ltd.

Mie Works

November 15, 2010

Furukawa Electric Co., Ltd.

Nikko WorksMarch 23, 2012

Furukawa Electric Co., Ltd.

Copper Tube DivisionDecember 20, 2012

Furukawa Magnet Wire Co., Ltd.

Mie Plants

November 15, 2010

Furukawa-Sky Aluminum Corporation

Fukui Plants

November 29, 2012

Furukawa-Sky Aluminum Corporation

Oyama Plants

December 20, 2012

(note 1) Organizations covered by the Occupational Safety and Health Management System are certified as meeting JISHA standards.

Presentation on Health and Safety Activities
Furukawa Electric holds presentations to showcase its health and safety activities,
honoring those of particular merit. Each works conducts its own presentations, withselected groups announcing their activities at the companywide presentation.

Forklift Truck Safety Skills Competition
Forklift accidents tend to cause serious injury. Furthermore, the cause of such
accidents can often be traced to insufficiently safe driving skills on the part of theoperator. Therefore, we hold our Forklift Truck Safety Skills Competition, so as toimprove awareness and operator skills.

63Furukawa Electric Group Sustainability Report 2013

Educating Employees at “Anzen Dojos”
Furukawa Electric has placed “Anzen Dojos” (safety education centers) at
manufacturing sites to enable employees to get a sense of the dangers. These centers
are designed as educational facilities where employees can experience various dangers,
such as heavy items, edged tools, work in high places, revolving equipment andelectricity, to raise their sensitivity to danger.

Manufacturing Works Patrols/Factory Checks
Each month, patrols are conducted at our manufacturing works to identify sources of danger and make improvements. In
addition, once each year a person in charge of health and safety at another manufacturing works performs a factorycheck, conducting inspections from a different point of view to confirm that no dangers have been overlooked.
We also conduct factory safety checks at Group companies, thereby extending the effectiveness of these activities
throughout the Group.

Labor Accidents
In 2012, the frequency rate of accidents requiring leave(note 2) was down, both for Furukawa Electric on a standalone basis
and for the domestic Group as a whole (note 3) pointing to year-on-year improvements.

(note 2) Frequency = (Accidents resulting in injury or death / total working hours) x 1 million(note 3) The scope of data collection for 2012 encompassed employees and temporary workers at Furukawa Electric andcompanies in Japan.
http://www.furukawa.co.jp/english/csr/social/employee_safe.pdf

24 affiliatedHealthcare for Employees Working Long Hours
In accordance with the Guideline issued by the Labor Standards Bureau entitled “Measures to be Taken by Employers toPrevent Health Impairment Due to Overwork,” we are focusing on managing the health of employees who work longhours by implementing strict limitations on worktime based on health checkups and arranging consultations by such
workers with industrial physicians.

64Furukawa Electric Group Sustainability Report 2013

Mental Health Education
We began conducting mental health measures in fiscal 2003. We invite industrial physicians and nurses to take part as
lecturers in education and training programs targeting managerial and general employees. In the past, such training has
focused on stress control for employees aged 30-35, as well as approaching mental health in terms of “work engagement(note 4)”In fiscal 2012, we also held Pleasant Workplace Discussion Groups for workplace environment improvement throughout
the Company to invigorate both individuals and worksites.
(note 4) A mental health concept pertaining to motivation, devotion, and energy regarding work.

Strengthening Smoking Measures
In fiscal 2004, we commenced measures to counter smoking in earnest, introducing programs to prevent exposure topassive smoke and encourage quitting smoking. As a result of such activities, the percentage of smokers among male
employees has fallen by approximately 20 percentage points over 10 years. As we plan to go to an entirely smoke-freeworkplace by fiscal 2021 at the latest, we are taking a multifaceted approach with three main thrusts: sharing information,
supporting efforts to quit smoking and creating a smoke-free environment.
Smoking rates among Furukawa Electric employees (male)

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again investigated workplaces that previously handled asbestos
products and we organized medical examinations focused on asbestos for all relevant employees. We also sent out
notices urging retired employees who worked at the relevant sites to undergo medical examinations.
As of March 31, 2013, three people have been confirmed as being involved in industrial accidents, and symptoms havebeen detected in nine.
Results of Medical Examinations
・People confirmed as having been in industrial accidents: Three (of whom one died of mesothelioma and one
died of lung cancer)
・People in whom symptoms detected: Nine (of whom one currently in employment and eight retired)65

Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Employee Data Book
Group Data (Consolidated)
Number of Group Employees by Region

Furukawa Electric Data
Gender ratio of employees (As of March 31, 2013)

Recruitment figures by genderFiscal2009
MaleSpecialized
staff

Fiscal
2010

Fiscal
2011

84

79

Female

17

Total

101

Fiscal
2012

Fiscal
2013

Fiscal
2014

73

66

49

26

13

9

12

10

6

92

82

78

59

32

Foreign nationals

1

4

4

2

3

0

Male

86

44

15

21

2

0

Professional
Female
staff
Total

1

0

0

1

0

0

87

44

15

22

2

0

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Furukawa Electric Group Sustainability Report 2013

Overtime(Unit: Average hours per month)Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Direct work

21.62

23.36

24.15

23.84

24.33

Indirect work

18.44

14.06

17.03

17.45

18.14

Average

20.1

17.75

19.72

19.85

20.46

Fiscal
2008

Fiscal2009

Regular annual leave
Item

Fiscal
2010

Fiscal
2011

Fiscal2012

Unit

Days carried over per person
(A)

22.8

22.5

22.0

22.6

21.8 Days

Days granted per person (B)

24.1

24.0

23.9

23.9

23.6 Days

Days acquired per person (C)

12.1

13.6

13.3

13.1

13.0 Days

Acquisition rate (C÷B)

50.2

56.7

55.6

54.8

55.1 %(note) Regular annual leave is calculated as leave taken between September 16 and September 15 of the following year. Figures for fiscal 2013
are calculated for the annual leave year that has not yet concluded.

People taking volunteer leave

People taking refresh leave

Fiscal 2012

Fiscal 2013

2011

2012

Female00Female

1

4

Male

1

5

Male

63

77

Total

1

5

Total

64

81

(note)Five people took advantage of this leave, bringing the total
number to date to nine.

(note) 1 Refresh leave is calculated on a calendar basis (January 1 to
December 31)
2 Refresh leave is a system that accords employees who haveworked for 25 years continuous leave of between 14 and 31 days.

People taking maternity/paternity leave
FemaleFiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

45

39

35

35

33

Male

2

4

4

10

7

Total

47

43

39

45

40

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Female

0

0

0

0

0

Male

0

0

1

2

2

Total

0

0

1

2

2

People taking nursing care leave

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Furukawa Electric Group Sustainability Report 2013

Relations with Communities

Furukawa Electric Group Basic Policy on Social Contribution Activities
Furukawa Electric and the Furukawa Electric Group have continued to conduct social contribution activities that arerooted in the local community. Going forward, we will strengthen these actions further along the three dimensions of
nurturing future generations, promoting sport and culture, and living in harmony with the natural environment and local
communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities(Revised March, 2011)
The Furukawa Electric Group will continuously undertake social contribution activities focusing on
nurturing future generations, promoting sport and culture, and living in harmony with the naturalenvironment and local communities, in addition to its business-related activities, in order tomaintain and strengthen community ties built over centuries and create a better tomorrow for
future generations.

Relations with Communities

CSR Awards
Fourth CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation
efforts of our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily
basis to continue contributing to society through these activities.

Social Contribution Award
Furukawa-Sky Aluminum Corp. (Japan)
Furukawa-Sky's Guiding Principles state that “As a good corporate citizen, we
proactively promote and sponsor social action programs,” and the company
conducts activities that are based in the local community on this basis. One of
Furukawa-Sky's particular points of focus is on welfare for people withdisabilities. Since the establishment in 2007 of the City of Fukaya
Furukawa-Sky Disabled Welfare Fund with donations from Furukawa-Sky, eachyear in addition to providing funds Furukawa-Sky sends two employees to join
as committee members of a subsidized project commission, where they
deliberate and make decisions on aid activities. The Fukui Works also works
with the city of Sakai's project to create a town that is friendly toward people
with disabilities, operates a care facility commuter bus and takes part in other Gingago (Donated in 2012, this bus
transports children to the Reihoku School
initiatives to enhance welfare facilities for people with disabilities. The
company also conducts a wide range of other activities. For example, each of for Children with Special Needs in the city of
Sakai.)
Furukawa-Sky's factories hosts plant tours for special-needs schools'
instructors and their students to support the employment of people with disabilities.

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Furukawa Electric Group Sustainability Report 2013

Environmental Preservation Award
The Furukawa Battery Co., Ltd. (Japan)
End-of-life automobile batteries should be managed properly, but instead they are sometimes dumped illegally or thrownout along with general waste. Given this situation, ensuring that batteries are always managed safely and appropriately
could help to prevent the spread of harmful substances and preserve the natural environment and link with resource
recycling and the curtailment of resource depletion. In 2007, Furukawa Battery created a structure for managing
automobile batteries that, with the cooperation of various partners, the company operates as a proprietary recycling
system. Each year, this system is used to collect more than 200,000 batteries a year, which are converted to resources
and returned to the marketplace in the form of recycled products. Going forward, Furukawa Battery plans to continue
providing customers with products that they can have peace of mind in using, while preserving the environment andcontributing to society.
The Car Battery Recycling Flow

CSR Awards Topics

FMT, Winner of the Third CSR Award, Earns a Silver This Year for Its Anti-Drug Campaigning
Furukawa Metal (Thailand) Public Co., Ltd. (FMT), which received the Third CSR Award for its “To Be Number One”
(http://www.furukawa.co.jp/english/csr/social/region_affiliated03.htm#fmt) anti-drug campaign, received a silver award
last year at an event held to commemorate its 10th year of “To Be Number One” activities.

Furukawa Metal (Thailand) Public Co., Ltd. (FMT)
ThailandSince 2004, FMT has participated in Thailand's “To Be Number One” anti-drug campaign, of which Princess Ubolratana
Rajakanya is project leader. The company received a silver award last year at an event held to commemorate its 10thyear of these activities. FMT plans to continue visiting the villages nearby its Saraburi Plant, eliciting the cooperation of
the region's government institutions, local residents and schools in its efforts to raise youth awareness of drugs and theterror they wreak.

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Furukawa Electric Group Sustainability Report 2013

Commemorative photo with Princess Ubolratana
Rajakanya at the event to commemorate the 10th
anniversary of the campaign

Commemorative photo of cooperative activities
undertaken with government institutions and schools in
the Saraburi area

Planting trees around Saraburi

Distributing flyers and sweets as part of a publicity
campaign in villages around Saraburi

Relations with Communities

Activities in Each Region
Providing Acorns to Nearby Elementary Schools (Hiratsuka, Furukawa Electric)
The site of the Hiratsuka Works houses trees that produce acorns, and in autumn the trees are filled with these nuts.
Around 2005, we began providing acorns from around our works to the Hachiman Elementary School in Hiratsuka, whichuses them as educational tools. Furukawa Life Service, which is in charge of the site's greenery, gathers acorns eachyear, and Furukawa Electric's General Affairs Section provides them to the principal, vice-principal and first-year
students of Hachiman Elementary School. The children receive the acorns with smiles on their faces, which makes us
happy, too. We plan to continue delivering joy to children in the form of acorns.

A poster received from the children, expressing their thanks

Lithocarbus edulus, which produces many acorns

70Furukawa Electric Group Sustainability Report 2013

Contributing to Local Communities (Imaich, Copper Foil Division, Furukawa Electric)
The Copper Foil Division has made social contributions to the local community for some time. The division is inagreement with the activity policies of NPOs and special needs schools, among others, and has supported their efforts
for many years through voluntary participation in their functions and events. For example, once each week the division
sets up a bread-selling stall in its cafeteria for Fureai no Mori, an NPO. The stall provides work opportunities for people
with disabilities, who staff the stall. The division also contracts out the task of sorting packaging materials returned bycustomers and cleaning activities to Social Welfare Corporation Habataki Welfare Project (Habataki), another NPO. The
division provides the NPO's members with a workplace and participates actively in regional networking events that
Habataki organizes. In these ways, the division works to increase its interaction with special needs people.

December soba festival (Social Welfare
Corporation Habataki Welfare Project)
Fureai no Mori: This NPO seeks to provide relaxed workplaces for individuals who find work difficult due to mental and other disabilities or atendency to withdraw from society. The NPO conducts bread sales and offers instruction on acquiring certifications.
Social Welfare Corporation Habataki Welfare Project: This work support and welfare institution provides assistance to people with disabilities
by providing them with outsourced work.
Sales underway (Fureai no Mori)

July Tanabata festival (Habataki)

Small Acts of Volunteer WorkEvent at Head Office to Support Tohoku's Reconstruction—Demonstrating Our Preparedness (Head
Office, Furukawa Electric)
Last fiscal year and this fiscal year, workers and management again joined in an event held at Furukawa
Electric's head office to support Tohoku's reconstruction. We heard about initiatives being undertaken by the fishermenon the Karakuwa Peninsula in Miyagi Prefecture and learned from an industrial physician how to use automated external
defibrillators (AEDs). In addition to confirming our preparedness, this participation-style event was aimed at aiding
Tohoku's reconstruction, if only in a small way. On the day, numerous executives and employees took time from theirbusy year-end schedules to join the event. Donations collected there were donated to Higashi Nihon Daishinsai Kodomo
Mirai Kikin (the Fund for the Future of Children affected by the Great East Japan Earthquake), which provides monthly
scholarships to elementary, junior high and high school children who lost one or more parents in the earthquake.

Hearing about the activities of fisherman in
Karakuwa Peninsula, Miyagi Prefecture

Display of items stockpiled in preparation
for disaster

Training on AED use

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Furukawa Electric Group Sustainability Report 2013

Relations with Communities

Awards from Outside Sources
2013
PeriodSubject / Implementing organization

Feb.

Technical Committee of Optical Fiber Technologies
Encouragement Award 2012:
Analyzing a New Mechanism of Air Holes to Suppress Micro-bending Loss inLarge-mode-area Optical Fibers
Implementing organization Technical Committee of Optical Fiber Technologies,
the Institute of Electronics, Information and Communication Engineers

Winning organization

Yukihiro Tsuchida
FITEL Photonics Laboratory, Furukawa
Electric

The Kanagawa Global Environment Award 2012 Energy Saving
Prize
Feb.

Furukawa Electric Yokohama Works
Implementing organization the Kanagawa Global Environment Conservation
Promotion Forum and the Kanagawa Prefectural Government

2012
PeriodNov.

Subject / Implementing organization
Japan Institute of Copper, 46th Research Association Award:
Effect of Crystal Orientation Distribution on Young's Modulus in Cu-Ni-Si
Alloy Strip
Implementing organization Japan Institute of Copper

May.

Yttrium-based superconducting wire for high magnetic fields
Implementing organization R&D Magazine

Japan Institute of Electronics Packaging, Technology Award:
Low power Consumption 1060nm 10Gb/s x 12-Channel Parallel-Optical
Modules
Implementing organization Japan Institute of Electronics Packaging

Apr.

Hiroshi Kaneko
Metal Research Center, Furukawa ElectricSuperPower Inc. of the United States, asubsidiary of Furukawa Electric

2012R&D 100Awards
Jun.

Winning organization- Winning the award together with the
University of Houston as co-developers of
the Oak Ridge National Laboratory Hideyuki Nasu and six others
FITEL Photonics Laboratory, Furukawa
Electric

The Laser Society of Japan, Laser Industry Encouragement
Hiroshi MatsuuraAward 2012: 555nm Green Laser Using Fiber Laser as Fundamental Wave for
FITEL Photonics Laboratory, Furukawa
Confocal Laser Scanning Microscope for Biotechnology
Electric
Implementing organization The Laser Society of JapanBCAO Award, Award for Practical Excellence

Apr.

Promotion of BCM activities throughout the Furukawa Electric Group
Implementing organization Business Continuity Advancement Organization(BCAO)

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Furukawa Electric