Business Report
Percentage of net sales by segment (As of March 2017)
Communication Solution

Service and Developments, etc.

5.5 %

49.7 Billion yen

18.7 %

168.5 Billion yen
Functional Products

14.6 %
131.5 Billion yen

Energy Infrastructure

Total

10.6 %

843.3

95.3 Billion yen(note)

Billion yen

Electronics
Component Material

Automotive Products& Batteries

25.8 %
232.1 Billion yen

24.8 %

223.4 Billion yen(note) Figures excludes intersegment transactions■ Net sales
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

――――
―――――
924.7

―
―――
―
―
―
――
931.8

―――
――
―
―
―
―
867.8

252.7
159.1
93.5
491.1
234.1
257.0
136.3
51.5

263.8
168.5
95.3
455.5
223.4
232.1
131.5
49.7

－ 56.7874.9－ 57.0843.3

FY 2012FY 2013

FY 2014

FY 2015

FY 2016―――――――――――――――――――
――――
――――

7.7
8.0

14.3
14.20.112.8
10.1
2.7
11.7

■ Operating income
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

25.5

17.9

－ 0.3
10.5
8.0
2.4
8.5
0.4
0.1
27.1

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

―――
―
―――
―
―
1.9%

―――
―
―
―
―
―
―
2.7%

――
―
―
――
―
――
2.1%

3.1%
5.0%

5.4%
8.4%
0.2%
2.8%
4.5%
1.2%
8.9%

17.8

－ 0.1
－038.6■ Operating income (Ratio to net sales)
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total*We have changed the category of reporting segments since fiscal 2016.

16

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

－ 0.3%
2.1%
3.4%
1.0%
6.2%
0.8%
－ 0.1%
3.1%－ 0.3%
0.1%
4.6%

Business Report

Communication Solution
Businessdivisions

Optical Fiber and Cable Products, FITEL Products
Broadband Solutions■ Fiscal 2016 Settlement of Accounts
Consolidated sales
168.5 billion yen (5.9% up year-on-year)

Fiscal 2016 Main Topics
Nov.

▶O FS Receives Emmy Award for the“Pioneering Invention and Deployment ofFiber Optic Cable”

Dec.

▶N otice of Joint Incorporation-Type
Company Split with NTT Electronics
CorporationMar.

▶S ampling of Narrow Linewidth & High
Output Power Micro ITLA for beyond100Gbps optical digital coherent
transmission

Consolidated operational profit
14.2 billion yen (78.0% up year-on-year)

Based on high demand for optical fiber cables
centered in Europe, America, and China, pricelevels for our Communications Solutions businesshave taken a favorable turn, and sales of lowtransmission loss optical fiber for submarine cables,
a value-added product, have increased. Sales ofdigital coherent related products have also shownsteadily positive performance.
In April of this year, we established an opticalsemiconductor device manufacturing company(60% capital investment ratio by our company) anda planar light wave circuit product manufacturingcompany (20% capital investment ratio by ourcompany) through a joint venture with NTT
Electronics Corporation. By creating combinationsof technology with individual characteristics andefficiently distributing management resources, wewill build production systems able to respond toincreases in demand for optical components, andraise our profitability.
Net sales(Billions of yen)(Billions of yen)

200
200
150
150

159.1
159.1

168.5
168.5
Narrow Linewidth/High Output Micro ITLA

100
100
5050002015
2015

2016
2016

(FY)
(FY)

Operating income(Billions of yen)(Billions of yen)

14.2
14.2

15
15
10
10

8.0
8.0

55002015
2015

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201717Energy Infrastructure
Businessdivisions

Power Cable, Industrial Cable & Power Cable Accessories■ Fiscal 2016 Settlement of Accounts
Consolidated sales
95.3 billion yen (1.8% up year-on-year)

Fiscal 2016 Main Topics
Jul.

Consolidated operational profit
0.1 billion yen (¥0.4 billion Improvement year-on-year)

In October of last year, our Energy Infrastructurebusiness received a transfer of the domestic
Japanese divisions for the underground powertransmission line and submarine powertransmission line businesses from VISCAS
Corporation, a joint corporation with Fujikura Ltd.
While this has led to an increase in sales, profits
were subjected to some pressure from thetemporary generation of business integration
expenses and a drop in demand for powertransmission and distribution components intended
for domestic power companies.
By operating these divisions in unison with overseas
divisions accepted from the same company in Aprilof the year before last, we will accelerate ouractivities to secure projects in ultra-high voltage
power businesses both domestically and overseas.

▶F urukawa Electric Receives an Order fora Very Large Scale Ultra-high Voltage
Power Cable Laying Project in SingaporeLaying site of ultra-high voltage power cables▶F irst Ultralight Low Voltage Branch
Aluminum Power Cable Supplied

Net sales(Billions of yen)(Billions of yen)

100
100

93.5
93.5

95.3
95.3
Ultralight Hybrid BH Cable installed

80
80
60
60

Oct.

40
40
20
20002015
2015

2016
2016

(FY)
(FY)

Operating income(Billions of yen)(Billions of yen)

1
1

0.5
0.5

0.1
0.1

00
-0.5
-0.5
-1-1

18-0.3
-0.3
2015
2015

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

 urukawa Electric Co., Ltd. acquired the▶F
underground undersea powertransmission line business of VISCAS
Corporation, a joint venture company
formed with Fujikura Ltd.

Business Report

Automotive Products & Batteries
Businessdivisions

Automotive Products & Batteries■ Fiscal 2016 Settlement of Accounts
Consolidated sales
223.4 billion yen (4.6% down year-on-year)
Consolidated operational profit
10.1 billion yen (25.3% up year-on-year)

In our Automotive Products business, while
domestic sales of wire harnesses were sluggish, theeffects of production efficiency improvement
activities, executed from the previous fiscal year inlocations such as our manufacturing bases inMexico, could be seen.
Management companies engaged in design andsales in China and Thailand will promote sales
expansion in China and ASEAN regions, while
efforts will be made to raise profitability by
optimizing wire harness production systems inindividual regions.

Fiscal 2016 Main Topics
Jan.

▶N ew Vehicle-mounted Perimeter
Monitoring Radar with the World's Most
Advanced Detection Performance hasEntered Mass Production-E xpected to significantly contribute to making
future automatic operating systems –Perimeter Monitoring Radar

This radar uses the pulse method to accurately andsimultaneously detect vehicles, bicycles, pedestrians,
and other obstacles.

Net sales(Billions of yen)(Billions of yen)

250
250

234.1
234.1

223.4
223.4

200
200

Proximity detection driving a car in reverse

150
150
100
100
50
50002015
2015

2016
2016

(FY)
(FY)

Blind spot detection

Operating income

Lane changing support(Billions of yen)(Billions of yen)

12
12
10
108866
4
4
2
200

8.0
8.0

2015
2015

10.1
10.1

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201719Electronics Component Material
Business
divisionsElectric Conductor, Magnet Wire,Copper & High Performance Material Products, Copper Tube

■ Fiscal 2016 Settlement of Accounts
Consolidated sales
232.1 billion yen (9.7% down year-on-year)
Consolidated operational profit
2.7 billion yen (12.1% up year-on-year)

In our Copper & High Performance Material Products
business, the sales quantities of wrought copper
products have recovered to the level they were at
before the snow damage which occurred at our Nikko
Works in February 2014. However, factors including areduction in net sales due to the effects of a decline incopper base metal prices have caused temporary
increases in the development costs of some products.
In our Magnet Wire business, we carried out a joint
venture with the Superior Essex Inc. Group of theU.S.A. in March of this year, allowing us to establish amanufacturing and sales company in Germany (49%capital investment ratio by our company) for highvoltage resistant rectangular magnet wire used in
automobile drive motors and other applications. We
will construct systems able to produce and sell theseproducts in areas of demand, and will enter theEuropean market for magnet wire used in EVs andPHVs.

(Billions of yen)300
300200Mar.

▶F urukawa Electric Develops Heatresistant Low Insertion Force Cu-Sn
Plating for Automobile Terminals

Heat-resistant Low Insertion Force Cu-Sn Plating▶S uperior Essex and Furukawa Complete
European Joint Venture Establishment▶F urukawa Electric is First in Japan to
Obtain JIS Standard Certification for“C1011” Oxygen-free Copper

Net sales(Billions of yen)

Fiscal 2016 Main Topics

257.0
257.0

232.1
232.1

200100100002015

2016

(FY)

2015

2016

(FY)

Operatingincome(Billions of yen)3(Billions of yen)

32

2.4
2.4

2.7

C1011 coil

2.721
10020

2015

2016

(FY)

2015

2016

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Business Report

Functional Products
Businessdivisions

AT & Functional Plastics, Thermal Management Solution & Products,
Memory Disk, Copper Foil

■ Fiscal 2016 Settlement of Accounts
Consolidated sales
131.5 billion yen (3.5% down year-on-year)
Consolidated operational profit
11.7 billion yen (38.1% up year-on-year)

Our AT & Functional Plastics business showed
increased sales of tape for semiconductor
production. Additionally, in the Copper Foil
business there were increases in demand andeffects of structural reforms such as the relocationof manufacturing to Taiwan, as well as an increasein sales of high value-added products such as foil
for high-frequency applications. In our ThermalManagement Solution & Products business,
however, demand for items including heatdissipation products for PCs was stagnant.
Regarding foam products, we are intending todevelop markets directed toward building
materials and automobiles in Europe and North
America, centered around our German subsidiary
Trocellen GmbH.

Fiscal 2016 Main Topics
Mar.

▶F urukawa Electric Develops New
Semiconductor Tape that Can
Significantly Improve Semiconductor
Quality-W
 ill begin mass production of materials forlaser grooving and plasma dicing –Semiconductor tape

Net sales(Billions of yen)

200

(Billions of yen)

200
150
150
100

136.3

131.5

136.3

131.5

2015

2016

(FY)

2015

2016

(FY)

100
50
50
00

Operatingincome(Billions of yen)
15

(Billions of yen)

11.7

15
108.5

108.5

11.7

55002015

2016

(FY)

2015

2016

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201721