Relationships with Customers and Suppliers
Social Requirements

The FDK Approach● Increasing importance of product quality andmanagement quality● Expanse of the reliable and safety needs inthe social infrastructure●● FDK Group will take advantage of ecosystems

to increase the value of offerings provided together with various partners to enable customers to utilize electric energy in diversified ways.

Highlights of Relationships with Customers and Suppliers

Number of publicannouncements regarding
products in FY2020

Number ofISO 9001-certified
production sites

Number ofIATF16949-certifiedproduction sites

Number ofISO 14001-certified
production sites

8747●Initiatives Supporting Relationships with Customers and Suppliers●

DC24V Nickel-Metal Hydride Battery System BBUS-122024-02

Example 2●As a Smart Energy Partner that assembles advanced technologies, the FDK Group would like our customers to best utilize electric energy in a safeand efficient manner, and it hopes to contribute to the materialization and development of a sustainable society. This vision will help to resolve social
issues through the products and services provided by the FDK Group.

Our offerings enable reliable applications for clean and safe electric energy tocorporate and individual users that support peopleʼs lifestyles.
Basic Concept
The FDK Group strives to build product development, supply, and quality assurance systems that help resolve social issues, and we work topromote green procurement based on concepts for continually developing and supplying high-quality, safe, environmentally friendly batteries and electronic devices able to satisfy customers.

Examples of Initiatives
FDK Group Initiatives

The FDK Group strives to provide batteries and electronic devices thatuse environmentally friendly materials by complying with environmental laws and regulations to heighten our value as a company cultivating
the future. As part of these measures, the FDK Group works to develop
new products, including a next generation of batteries able to provide
customers with new added value derived from the distinct technology
cultivated in the battery and electronic device businesses thus far.

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FDK GROUP CSR REPORT 2021

Governance

Examples of new product launches in FY2020 (excerpt)

Example 1

Release of BBUS-122024-02, a DC24V nickel-metal hydride batterysystem for transportation infrastructure and industrial applications
Our usersʼ expectations● Reduce replacement costs by using rectifiers taken directly fromexisting outdoor equipment.
● Increase battery capacity in the current battery installation spaceand extend the working hours for night maintenance.
● Reduce degradation of battery discharge capacity in thelow-temperature environment of winter.
● Conduct remote monitoring for signs of battery degradation andimplement systematic battery replacement before the batteries
reach the end of their life.
● Features of the new product:● Easier replacement achieved by control that incorporates thecharging and discharging behavior of lead-acid batteries.
● Small size and parallel connection capabilities (34% reduction
in volume and 48% reduction in mass compared to equivalentlead-acid batteries*, according to our research)● Equipped with nickel-metal hydride batteries with good
low-temperature discharge characteristics● Equipped with monitoring and communication functions

Release of the FUJITSU alkaline battery, “Long Life PLUS.”
Features
The use of rare metal coating technology in the cathode casesuppresses increases in internal resistance due to oxidation andoutflow of impurities from the inside of the battery, resulting in improved discharge performance and leakage resistance after longterm storage, long-term storage of ten years—approximately double that of conventional products. This is a new standard for alkaline
batteries that combines discharge performance suitable for medium- and low-current devices with a long-term storage performanceof ten years, providing excellent value for the money and making itsuitable for use in all aspects of daily life. In addition, this productcomplies with the Act of Promoting Green Procurement, while thebacking paper for the multi-packs and blister packs is made of environmentally friendly FSC-certified paper.

FUJITSU Alkaline Battery, “Long Life Plus”

Example 3
Expansion of production capacity for high-power, cylindrical lithium-manganese dioxide primary batteries (25% increase in productioncapacity)
We will expand the assembly line for high-power, cylindrical lithium-manganese dioxide primary batteries, which are in increasing
demand in the meter communication market, in order to increase production capacity by 25%.

HumanRights

Labor Environment Fair Trade Consumer Community
PracticeIssues

Our high-power, cylindrical lithium-manganese dioxide primary batteries are mainly used in electronic meters for gas, electricity,and water. As a result of the recent trend toward smart devices withincreased communication traffic volume, demand is increasing forlithium batteries that can discharge a large amount of current during
operation. The batteries are also used in fire alarms, medical devices, in-vehicle equipment, etc. Even the COVID-19 pandemic has not
slowed demand, and we expect orders to continue to increase. Given
these market conditions, we will expand the assembly line at the Tottori Plant, where we manufacture our lithium batteries, and increase its
production capacity by 25% starting in April 2021. In parallel with thisexpansion of the assembly line, the strengths of the existing assemblyline were retained and the points that needed to be improved were
thoroughly reviewed. In addition to designing equipment to maximize
battery performance, quality, and productivity, we will also adopt a line
configuration that is designed with the development of an IoT-based
smart factory in mind, including the establishment of a traceability
system, thereby allowing us to deal with increases in orders.

Left: High-power, cylindrical lithium-manganese dioxide primary battery
Right: The Tottori Plant

New Addition of Research and Development Content to Our Website
We have been researching and developing batteries for over 70 years
since our founding in 1950, starting with manganese dry cell batteries
and continuing with alkaline and lithium batteries and more. With theaddition of nickel-metal hydride batteries in 2010, we have broadened the scope of our research and development on batteries, and ourknowledge and expertise in this area has grown deeper.
More recently, our research and development efforts have resulted in the development of new batteries, including all-solid-statebatteries and metal-hydride/air secondary batteries. We would like topublicize our technical capabilities and products to our customers andother stakeholders by showcasing our technologies and examples ofour R&D activities on our website.
URL for added research and development content:
https://www.fdk.co.jp/research-and-development/

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Relationships with Customers and Suppliers

Governance● FY2020 Achievements

Ni-MH batteries
FDK strove to develop and supply a variety of Ni-MH batteries for household electronics, in-vehicle accessories, power back-up systems,
and products for mobility and social infrastructure.
● Alkaline batteries
FDK worked to develop products with high performance and high reliability. We also supplied environmentally friendly products.
● Lithium batteries
FDK worked to develop products for the residential alarm, in-vehicle, and AED markets. We have also developed a high-power, cylindricallithium-manganese dioxide primary battery with the highest capacity in the industry.
● Electronic devices
FDK strove to propose and develop smaller and lighter electronic devices for its customers. We also worked to develop sensing andwireless products.
● All-solid-state batteries
Started production of SoLiCellTM, a small, all-solid-state SMD battery, at our Kosai Plant. (December 2020)● Research and development
Developed a metal-hydride/air secondary battery, one type of next-generation battery for large-scale power storage. (November 2020)●Improvement Processes of Actions to Strengthen Quality
Assurance

HumanRights

Labor Environment Fair Trade Consumer Community
PracticeIssues

2. Green Procurement Initiatives
The FDK Group contributes to the materialization of a more sustainable society by conducting business activities that consider theenvironmental burden and supply environmentally friendly products.
The FDK Group provides environmentally friendly products to customers by procuring and using eco-friendly materials based on theFDK Group Green Procurement Standards.

1．In order to implement the FDK Groupʼs quality policy, each verification process, from product planning to mass production transfer, isreviewed in accordance with quality-related regulations, etc., drawing on a wide range of knowledge not only from the department
itself but also from other related departments, thereby ensuring
more objective assessment.
● Quality Assurance System

Quality Management SystemPresident

Improvement activities: Check activities on-site by top management
Convene Group-wide Quality Management Committees

Development with Considerations for Quality and Safety
FDK Group Quality Policy“We will provide customers with quality they can rely on.”Philosophy
Our mission is to develop and supply high-quality, safe, and environmentally friendly products that satisfy customers through a basic quality-firstapproach. The FDK Group knows it must never cause any grave quality
issues or violate the laws or regulations of each country worldwide.
Therefore, every department takes customer-oriented actions
throughout each step from sales to research, planning, development,
design, production and even customer service to provide more precise
quality management.

Quality Action Guidelines
1. We will make quality requests from customers our highest priority
and take swift pertinent action to heighten customer satisfaction.
2. We will strengthen fundamental activities in the development stage
and incorporate quality, price, delivery, and environmental considerations into production to help prevent quality issues at the production stage, improve profitability, strictly adhere to delivery dates, andimprove environmental performance.
3. We will continually enhance risk management throughout various
aspects of compliance from product safety to the chemical substances contained in products.
4. We will improve manufacturing to thoroughly reduce any loss ofquality, such as process waste and losses from complaints.
5. We will continually improve the quality management system to execute more effective quality management.

Quality Assurance System
The FDK Group has built a quality management system to achieve theQuality Policy and Quality Action Guidelines and will always undertake
quality assurance activities. As of March 2021, eight of our sites, including those overseas, have acquired ISO 9001 certification, and four
have acquired IATF 16949 certification.

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FDK GROUP CSR REPORT 2021

FDK Group Corporate Conduct Guidelines
FUJITSU Way

Continually strive to ensure
product and service quality and safety
in all aspects of our business activities

Quality Assurance
Division
Manufacturing
Departments

Reliability Assurance
Departments

Increasing corporate valueEngineering
Departments
Quality Control
Departments

Committees: Contained
Chemical SubstancesWork to build an abundant future together
with customers and society

Sales Group

Business Group

Overseas Group Companies

Committees:
Product Safety

Quality Control
Departments● Chart of Each Quality Assurance Verification Process

Quality Policy: “We will provide customers with quality they can rely on.”Quality Assurance Initiatives
In order to provide quality products and services that satisfy the function and performance requirements as well as other customer needs,
FDK fosters cooperation between management and other various departments. This necessitates the participation of every employee inactivities across every process of its corporate activities.
The FDK Group engages in collaborative activities linked to thoseof each business site, including those overseas, across a diverse product line-up.
Quality assurance divisions actively work to share information withall business divisions to drive these activities, formulate quality proposals, escalate responses in the event of problems and quality issues
related to compliance, conduct education to nurture human resources,and horizontally share other information such as expertise and examples of defects. FDK has established a Group-wide Quality Management Committees hosted by top management to approach quality
management from a Group-wide management perspective.

Planning

DesignReview
Risk (management, environment, facilities)
and design reviews, etc.
Reliability assessment ofcomponents and products

Assessment/testing

Customer satisfaction

Risk escalation

Judgment
forshipping

Storing, sharing and use of knowledge
Quality status monitoringand improvement

Reliability assessment of systems

Support improvement activities through selection, assessment and regular audits of suppliers

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