The Story of Value Creation at the FDK GroupStory

Approach to Value Creation

In continually addressing five prioritized initiatives based on the FDK Group Sustainability Policy, the Group engages in management as a
responsible global corporate citizen. Through the development and supply of batteries, energy storage systems, and electronic products
based on the core technologies we have developed over the years, and the provision of battery solutions, the FDK Group, in contributing to
the resolution of social issues, is committed to providing value to all stakeholders.

Vision: Smart Energy Partner

Stakeholders

FDK Group, as a Smart Energy Partner, assemble advanced technologies, would like ourcustomers to best utilize electric energy in a safe and efficient manner, and contribute tomaterialization and development of sustainable society.

Customers

Shareholders/
Investors

Suppliers

Employees

The status-to-be of the FDK Group: Our offerings
We are adding various functions and features in addition to the reliability, safety, andenvironmental conservation that we have always offered, thereby achieving a wider range ofapplications and meeting an increasingly diverse range of customer needs.

Social Issues• Growing awareness of CSR• Importance of product quality andmanagement quality• Sudden changes in the price of natural
resources

Invested Capital• Sharp rising in labor costs at overseas
manufacturing base
• Market maturity and change of market
structure

Mid-Term Business Plan / 10 Years’ Scheme

Business Model

Vi

u

ie

ine

Medical and Welfare Sites

Batte

Electrochemical technology
Power electronics technology
Ultra-fine printing technology• Human capital

2023–25

ess

Circuit technology

CAE technology

Sta

Materials technology

R1

tus

2020-22

ro

ffe

rin

ctron

ics busin

ess

m

Ele

e:

Ou

Ga

-b

• Natural capitale-to• Social andrelationshipcapitalAnd

1. Accelerate the profitable growth ofcore businesses
3. Cultivate a culture of mutual
acknowledgement and enhancement

Standards• Lithium batteries• Alkaline batteries

R3

2026-28• Facility-related equipment• Various modules• Power supply solutions

Strengthening Resilience and Laying Groundwork for R3
We anticipate that the business environment for R2 will be morechallenging than that for R1. Despite this, we will enhance our businessresilience by strengthening our three core existing businesses, step up thepace of laying groundwork by launching new businesses, and improve thequality of management by fostering a culture of autonomous pursuit ofhigher goals. This will then lead into R3, in which we will aim to achieve thestatus-to-be set forth in the 10 years’ scheme.

CodeMaterialities
FDK GROUP SUSTAINABILITY REPORT 2023

Under the mid-term business plan R2, we will implement
various measures based on the three pillars of“accelerate the profitable growth of core businesses,”“develop and launch new businesses,” and “cultivate aculture of mutual acknowledgement and enhancement.”
We will improve the profitability of the company as awhole by growing our three core existing businesses,
launching and commercializing businesses such as
next-generation batteries and power solutions, anddealing with all stakeholders involved with the FDKGroup with an “And Game” attitude, which will lead to anincrease in our corporate value.

2. Develop and launch new businesses

gs

FDK Group: FDK Group Corporate Conduct Guidelines
Fujitsu Group: The Fujitsu Way
Philosophy
Vision11• Ni-MH batteries

Three Pillars of R2

High-density mounting technology• Finance capital

Homes

R2

usin

rie

og

Social Infrastructure / Businessgb• Manufacturing
capital’s
DKcore technol

Eng

Output p.17–20

r

in

F

s

tne

s

sb

si

s
ne

Smart Energy Par

p.13-14er• Intellectual capitaln:sio

Global Society/Local Communities• Legislation to promote energy-saving policy• Enlarging demand to in-vehicle telematics
appliance

p.15-16

10 Years’Scheme
FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK Group

Story

Mid-Term Business Plan andMaterialities

Information on the FDK Group Strategy Framework 10 years’ scheme and
Mid Term Business Plan “R2”
In order to further strengthen our business structure, increase our corporate

remained in the black, it fell short of that in the initial plan due to a lack ofvalue, and meet the expectations of our various stakeholders, the FDK Group

resilience to the deteriorating external environment, such as soaring raw

has developed a “10 years’ scheme” that sets out the status-to-be formaterial prices.

FY2029. To make this status-to-be a reality, we implemented the R1 mid-

Given these circumstances, we have refined our business portfolio toterm business plan for the first three years of this period (FY2020–FY2022).

realize the status-to-be set out in the 10 years’ scheme, developing the R2During the R1 period, consolidated net sales exceeded the target for

mid-term business plan with the three pillars of “accelerate the profitable

FY2022 despite the transfer of shares in our alkaline battery manufacturing

growth of core businesses,” “develop and launch new businesses,” andsubsidiary, among others. Meanwhile, although the operating margin“cultivate a culture of mutual acknowledgement and enhancement.”

Business Portfolio Based on Market Strategy Mapping (Pillars 1 and 2)∙ Increase the profitability of the entire company by growing our three largest current businesses∙ Launch a next-generation battery and power solutions business and enhance their businesspresence∙ For Engineering, which unperformed in R1, build a foundation for growth through new businessdevelopment. For alkaline batteries, improve profitability with minimal operations
Focus• Industrial/IoT• Mobility

The Three Pillars of the R2 Mid-Term Business Plan

1. Accelerate the profitable growth of core businesses∙ Focus on growing markets and markets presenting high levels of addedvalue∙ Optimization of business scale through structural reforms

2. Develop and launch new businesses∙ Full-scale operation of the next-generation battery business and thesolutions business∙ Develop the elements for a more advanced generation battery businessand solutions business

Sales growth rate

• Battery infrastructure• EV battery-related• Appearance inspection
equipment

Power solutions

Next-generation
batteries(solid-state, nickel-zinc)

Business
Alkaline batteries
improvements• Expand sales channels

Engineering∙ Building systems that enables each individual to demonstrate theirabilities∙ Improving the quality of management, including governance13

FDK GROUP SUSTAINABILITY REPORT 2023

• In-vehicle/Power BU• Social infrastructure/Mobility• Meters• Industrial/Healthcare• Mobility/IT/Sensors• Semiconductors

Ni-MH

Lithium primaryElectronic/PMS

Mainstay

Profitability (gross margin ratio)

Cultivate a Culture of Mutual Acknowledgement and Enhancement (Pillar 3)

Customers and partners

Employees

Improve products and services
based on close communication andtrust

Improve the quality of management byregularly recognizing achievements
through praise and encouraging
development of our strength

Shareholders

3. Cultivate a culture of mutual acknowledgement and enhancement

Successful areas of application

Obtain appropriate evaluation for ourcompany through the timely
dissemination of information“and”(do it all)Society
Deepen awareness and fulfill
responsibilities as a member ofsociety

FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK Group

Story

Mid-Term Business Plan and Materialities

The FDK Group’s 5 Materialities (Prioritized Issues)
The FDK Group has newly identified five materialities in order to realize the Group’s philosophy of “Inspiring transformation; shaping thefuture and creating happiness,” and the Group’s vision, “FDK Group, as a Smart Energy Partner, assemble advanced technologies, would likeour customers to best utilize electric energy in a safe and efficient manner, and contribute to materialization and development of sustainable
society.”Through its business activities, the Group aims to realize the five materialities it has identified and to achieve sustainable development ofsociety and enhancement of its corporate value.

2 Coexistence with the global

Importance to society

environment

The Materiality Identification Process
In identifying materialities for the FDK Group, we established an

STEP 1internal “Sustainability Promotion Preparatory Committee,” whosemateriality from the viewpoint of its importance to the Group and its
at management meetings and other forums.

enhancement ofcorporate governance

STEP 2

initiatives for each business division, etc. accordingly.

STEP 3

Importance to the company

Producing the Materiality Map
Materialities

ESG category

Provision of safe and reliable electric• Provide products and solutions that support a sustainable societyenergy2

Coexistence with the global
environment• Promotion of a recycling-oriented society• Measures to address climate change• Contribution to the global environmentE3

Promotion of diverse humanresources•
Create an environment in which employees demonstrate theircapabilities to the fullest• Create an environment conducive to continued work in good healthS

4

Sustainable enhancement ofcorporate governance•Strengthen systems and supervisory functions to ensure prompt
decision-making with management transparency and objectivity,
taking into account the positions of stakeholders• Strengthen the foundation of the risk compliance system• Strengthen internal company controls• Ensure compliance with laws, regulations, and social norms andconduct with high ethical standards

G

5

Contribution to the sustainability of
local communities and society• Connect with local communities to create a world full of smiles

S

Identifying Materialities• Materiality issues for the group are determined at management
meetings and in the Sustainability Promotion Committee

Materiality measures for the company

1

Validation• The Sustainability Promotion Preparatory Committee members
examine priority issues for the company from multiple perspectives
in each field.

STEP 4

reliable electric energy

local communities and society

Setting Out the Social Issues• A 5-point scale is used to rate the importance of each of theidentified social issues from an internal and societal perspective• The evaluation results are mapped on graphs to examine levels ofimportance and confirm the positioning of priority issues

From FY2022, we will set KPIs for each materiality and implement

1 Provision of safe and3 Promotion of diverse human resources

5 Contribution to the sustainability of• Social issues are listed by the Sustainability Promotion Preparatory
Committee• The relevance of the listed social issues to our Group is considered,and discussions are held to select themmembers identified social issues and then evaluated each candidate
stakeholders. Five materialities were identified based on discussions

4 Sustainable

Relevant SDGs

E・S

The Social Issue Identification Process
Keywords relating to sustainability extracted

Social issues listed

Social issues selectedSustainability Promotion Preparatory Committee

Relevant social issues arelisted based on the extracted

19 candidate social issues
extracted based on their relevance to

keywords

the company

1,496 keywords

15

FDK GROUP SUSTAINABILITY REPORT 2023

Impacts ascertained
Company
Society

FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK GroupOUTPUT

Batteries

The FDK Group’s Output
Product Information

Ni-MH batteries

What are Ni-MH batteries?

Batteries
Ni-MH batteries are a type of rechargeable battery that can be charged and used repeatedly.
FDK’s batteries offer the advantages of stable discharge voltage and high-current discharge, as
well as superb safety performance, being highly resistant to overcharge and over-discharge.
They are also highly recyclable and easy to transport.

Lithium batteries

Advantages
Advantages

Lithium metal, which has a high capacity relative to mass, is used as the anode material, andFDK’s unique technology keeps the self-discharge rate low to achieve long service life. Resistantto both low and high temperatures, they can be used for a wide range of applications.

What are lithium batteries?

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
Environmentally friendly
These batteries are environmentally friendly as they do not use hazardous substances subject to regulation under the
RoHS Directive.
Long service life, long-term reliability
Optimized material design and laser sealing provide a long service life of 10 to 20 years, depending on the product. As
such, they help support long-term operation of equipment.

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
Environmentally friendly
Because they can be repeatedly recharged and discharged, they generate less waste than dry batteries, making them
resource-saving, environmentally friendly products.
Usable in a wide range of temperatures
Some products can be used in a range of temperatures as wide as -40°C to +85°C.
Long service life
With their long service life, Ni-MH batteries are ideal as replacements for nickel–cadmium batteries in emergency
lights, guide lights, security equipment, etc.
Highly recyclable
Ni-MH batteries are made using metal resources such as nickel and iron, which can be reused through recycling.

Excellent storage performanceWith an extremely low self-discharge rate of 0.5%/year (at room temperature), they retain more than 95% of theircapacity even after 10 years of storage.
Usable in a wide range of temperatures
By employing a non-aqueous electrolyte that does not freeze easily, some products can be used in a range oftemperatures as wide as -40°C to +85°C, supporting the operation of equipment even in outdoor environments.
Stable discharge voltage
The spiral electrode design and optimized electrolyte composition provide reliable support for high-load, highfrequency communications.

Applications
High durability

High-durability
automotive use

Applications
Security

Transport

Medical devices

Guide lights

Coin-type batteries (primary batteries)

Cylindrical-type batteries

MetersHigh output
Automotive (eCall, etc.)

Utility meters(gas, electricity, water)
Servers/storage

Starters

ATMs

Household fire alarms
Gas leak alarms

Thin-type batteries
Dry-cell compatibility

Electronic keys

IoT communication modules

Care lifts

Coin-type batteries (secondary batteries)*

General functions●REC
Camera strobes

ClocksRemote controllers

Wireless computer
mice

Information andcommunications
equipment

Audio and visualequipment

Lighting equipment

Credit cards(with dynamic code display)
Card-based security systems

Wearable
medical devices

Dashboard cameras

Security cameras*Memory backup applications

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FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK GroupThe FDK Group’s Output
Product Information

OUTPUT

Batteries

Alkaline batteries

Electronics

What are alkaline batteries?

Alkaline batteries are primary batteries characterized by their excellent power and longevity,
allowing even devices with high power consumption to be used for long periods of time.
Highly reliable, they meet all kinds of needs, from high-current to low-current devices.

Modules
We deliver compact, high-performance modules by drawing on two of the fundamentals of FDK’s technology:
electrochemical technology and materials development. We provide finely tuned solutions to meet our customers’
needs from the design stage, offering high-density, high-quality, and high-value-added products, modules, andmore, based on technology proposal-based design and development.

Advantages

Applications
Advantages

The quality and reliability of Japanese manufacturing
We are committed to manufacturing in Japan so that our products can be used safely and reliably in all applications,and this Japanese craftsmanship, which prides itself on precision and care, has ensured our high standards of quality.
FDK’s proprietary rare metal coating
The rare metal coating between the conductive film and the nickel plating layer prevents internal resistance fromrising due to oxidation and inhibits the generation of gases inside the battery that can cause leaks.

High-frequency devices

Card readers

Communications

GPS modules

Bluetooth®* devices* “Bluetooth” is a registered trademark ofBluetooth SIG, Inc.

Applications

Electronics

Household appliances

Power supply solutions

Advantages

Remote controllers

LED lights
Outdoor goods

Mice

Infection prevention

Pulse oximeters

Engineering

Dispensers

Beauty and health equipment

Sanitation appliances

Applications
Equipment

Musical instruments and audio equipment

Contactless thermometers

Electronic keyboards

Facilities and related equipment

Group company: FDK ENGINEERING CO., LTD.
FDK ENGINEERING CO., LTD. was founded in 1956 as the Machinery Department of

Audio devices
Digital voice recorders

Through performance and quality, we support our customers in addressing an increasingly complex set of challenges,
providing a wide range of products such as standard power supplies designed for long service life (15 years or more),custom power supplies newly designed to meet customers’ needs, and system power supplies that provide a higher
level of performance for applications that standalone power supplies cannot handle.

Semiconductor manufacturing
equipment

Base stations

Industrial manufacturing
equipment

Receivers

RelaysTransmitters

The company provides total support for helping customers save labor, streamline their operations, and automate their equipment and machinery, from initial
proposals to design, manufacturing, and final adjustments, as well as providing high-quality equipment. With the ability to propose concepts as its greatest
strength, FDK Engineering handles equipment in a wide range of fields, including automobiles, batteries, electrical and electronics, and medical-relatedareas, incorporating the next generation of cutting-edge technology and constantly evolving to contribute to the development of both customers and society.
Proposal

Development

DesignManufacturing

Installation

Operation

Fuji Electrochemical Co., Ltd. (now FDK Corporation) and was established as a
subsidiary of the FDK Group in 1990.
A group of expert technicians, FDK ENGINEERING is the only company in the FDKGroup that specializes in factory automation equipment. Since its establishment, it
has been committed to providing equipment that satisfies its customers, in line with
its philosophy of “giving shape to your ideas” and its vision of “pioneering the futureof production systems with our skill and heart.”

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FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK Group

Sustainability Management

Story

For the FDK Group, sustainability activities are about working together with stakeholders* to solve various social problems through all ourbusiness activities, thereby contributing to the realization of a sustainable society, in line with our philosophy, “Inspiring transformation;
shaping the future and creating happiness.”* FDK Group stakeholders: The FDK Group considers customers, suppliers, shareholders, investors, employees, global society, and local communities to be its stakeholders. We also consider organizations such as governments,
NPOs, NGOs, academic societies, industry associations, and international organizations to be important stakeholders within “global society and local communities.”

Sustainability Promotion Framework

Sustainability-conscious Procurement Activities

To advance its sustainability activities, the FDK Group has established a

Based on the FDK Group Sustainability Policy, the FDK Group Corporate

Positioning of Materialities in Relation to the FDK Group
Sustainability Policy

Sustainability Promotion Committee to discuss, decide on, and evaluate theConduct Guidelines, and the Fujitsu Way, the FDK Group has prepared the

The FDK Group has defined five materialities based on its Sustainability

We are committed to providing value to all stakeholders and realizing thegroup-wide realization of the SDGs and medium- and long-term issues in the

FDK Group Supply Chain CSR Promotion Guidebook as a set of guidelines to

Policy. These materialities are established by considering priorities in terms of

FDK Group’s philosophy by implementing the priority measures for the fiveareas of environment, society, and governance. The Sustainability Promotion

promote procurement activities that take into account issues such as respect

their importance to the Group and its stakeholders, and we are promoting

materialities.

Committee, chaired by the President and CEO, conducts periodic reviews offor human rights, health and safety, conservation of the global environment,sustainability management to help resolve the SDGs associated with each

information dissemination, new examples of community service, and the ideal

legal compliance, fair trade, and corporate ethics, and has made it available

materiality.

relationship between a sustainable society and business, among other issues.

on the Group website. In addition to practicing procurement activities incompliance with these guidelines, we also ask the suppliers that make up our

Composition of the Committee
Chair:: President and CEO

supply chain to do the same.

Vice-Chair: Director (Corporate Officer) for Corporate Headquarters

Members::

Group President, Group Vice President, General Manager, Director of
Legal and Intellectual Property Dept, Director of Corporate Auditing Dept

Sustainability Policy

Secretariat : General Affairs and Personnel Department

FDK Group Corporate
Conduct Guidelines

Fujitsu Way

Sustainability Management Promotion Framework

Implementationofour philosophy

Promotion Framework

By working together with stakeholders to solve various social problems through all our business

Management Meetings
Sustainability Promotion Committee
Secretariat: General Affairs andHuman Resource Division
Sustainability Steering Subcommittee

FDK Group Supply
Chain CSR
Promotion
Guidebook

activities, we contribute to the realization of a sustainable society in accordance with our philosophy,
FDK Group
Supply Chain
CSR Survey
Questionnaire“Inspiring transformation; shaping the future and creating happiness.”
Requests for Suppliers(1) Summarize requests from government and industry associations, customers, and global perspectives, andformulate company policies(2) Committee steering, including changes in materialities, development of committee organization proposals, etc.

Sustainability Promotion
Subcommittee
Progress management, compilation, andcommittee reporting of materiality
organizational goals

Corporate Conduct Guidelines

Sustainability Policy

Promoting sustainability-oriented procurement activities

Board of Directors

Philosophy
FDK Group
VisionResponsible Minerals
Subcommittee

CSR and Sustainability
Survey Subcommittee

Summarize issues and problems in
response to various demands fromsociety

Summarize issues and problems in
response to various demands fromsociety

Board of Directors

Management Meetings
Responsible Mineral Procurement Policy
The FDK Group adheres to the Fujitsu Group Policy on Responsible Minerals

FDK Group Materialities
1 Provision of safe and reliable electric energy
2 Coexistence with the global environment

Sustainability Promotion Committee

3 Promotion of diverse human resources

Procurement and sees its corporate responsibility related to mineral issues as

4 Sustainable enhancement of corporate governance

one important CSR challenge. Our policy designates tantalum, tin, gold,

5 Contribution to the sustainability of local communities and society

tungsten, and cobalt as minerals with a high risk of supporting conflicts, using
forced labor, or violating human rights, and it removes any problematicrefineries or other business proprietors from the supply chain. The FDK Groupwill ensure transparency throughout the supply chain and strive forresponsible mineral procurement.

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FDK GROUP SUSTAINABILITY REPORT 2023

The FDK Group Framework: 10 Years’ Scheme
Mid-Term Business Plan

FDK GROUP SUSTAINABILITY REPORT 2023

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The Story of Value Creation at the FDK Group

Story

Five Prioritized Initiatives

The FDK Group has established five prioritized initiatives based on its materialities and is implementing sustainability management
accordingly. The purpose of these prioritized initiatives is to contribute to society through the FDK Group’s business, to actively address
matters required by the RBA and other organizations, and to promote responsible management as a global company, and they are being
addressed as follows.
Prioritized Initiative / Materiality
Prioritized theme

Provision of safe and1 reliable electric energy
Provide products and solutions that support asustainable society

Medium- to long-term target
Alongside various partners, develop and provide products and solutions that can make acontribution in various situations, including realizing the smart cities of the future.
• Smart Infrastructure
Develop and provide spare and storage batteries, modules, and solutions that can be installed
anywhere to support social infrastructure• Smart Home & Office
Develop and provide batteries, modules, and solutions for use in a wide variety of highperformance equipment for both indoor and outdoor use• Smart Retail Store
Develop and provide batteries, modules, and solutions to be installed in IoT devices for data
communication with the cloud and management centers• Smart Factory & Mobility
Develop and provide batteries, modules, and solutions for driving vehicles, plant machinery, andother equipment requiring stable operation

FY2022 target• Ni-MH batteries:
Expand sales of products for social infrastructure, home appliances, power
backup, in-vehicle accessories, and mobility applications• Alkaline batteries
Develop technologies for higher performance (longer life) and improved
safety and reliability
Develop technologies and products to reduce environmental impact

FY2022 result• Lithium batteries
Cultivate new business opportunities and accelerate development of
new models
Maintain the product supply system• Electronics businessStart mass production of products for residential applications
Develop products for mobility applications• Development of next-generation technologies
Develop next-generation batteries (nickel–zinc batteries)
Develop batteries for the generation after next
Advance elemental technology development• All-solid-state batteries
Advance development of compact all-solid-state SMD battery
SoLiCell®

• Ni-MH batteries
Began mass production and shipment of long-life Ni-MH batteries for the
in-vehicle accessory market, shipments of electrode plates for Ni-MH batteries
for large storage batteries, and shipments of high-power Ni-MH batteries for
power supply backup applications.
We are also working to further expand sales by shipping samples of products forin-vehicle accessories and the mobility field, as well as through other means.
• Alkaline batteries
In addition to adopting “passivation block technology” for all products and striving
to improve continuous discharge performance, we have promoted the creation ofsustainability-conscious products by adopting biomass ink for battery labels andadding the “Sustainapack” to our product lineup, which uses 100% papermaterial in order to reduce/eliminate plastics in packaging materials for the“Premium S” line.

• Lithium batteries
In addition to advancing the development of higher functionality models forthe short-distance communication market, we strengthened our production
system by consolidating the production of high-capacity cylindrical-typeprimary lithium batteries at the Tottori Plant.
• Electronics businessStarted mass production and shipment of wireless products for smart homes
and advanced development of drivers for next-generation semiconductor
exposure motors.
• Development of next-generation technologies
Advanced the development of next-generation battery prototypes, anddetermined and evaluated the specifications of the batteries for thegeneration after next. In addition, we also proceeded with the development of
new analytical element technologies.
• All-solid-state batteries
In addition to conducting reliability tests, prototyping, and evaluation, we
exhibited our products at the 9th Wearable EXPO.

Contributing to carbon neutrality• Adoption of renewable energy: 40% or more by 2030
• Integrated management of achieved emissions in Scope 1 to Scope 3• Energy conservation activities: 1% reduction/year = 7% reduction by FY2029• Rate of renewable energy adoption in FY2022: 8%• Identify issues and establish a system for management of Scope 3
emissions• Identify various energy conservation measures and implement
measures to achieve targets
Systematic renewal of aging facilities
Reduce peak power consumption• 8% of the energy purchased in FY2022 was renewable energy, and we areworking to install solar power generation at the Tottori Plant.
• Studies were conducted on industry-standard methods for managing Scope 3
emissions. Information on Scope 3 calculation methods was gathered at an
external web seminar.

• Each site has set its own electricity reduction targets and is working toachieve them.

Contributing to the realization anddevelopment of a sustainable society

Collaboration with stakeholders• Promote collaboration with the supply chain• Restructure internal systems (including information research and disclosure)• Promote collaboration with external organizations in Japan and abroad• Propose international standards• Maintain 100% rate of surveys conducted on chemical substances contained in products• Maintain 100% rate of surveys conducted on responsible mineral procurement• Continuously identify issues and provide feedback through Fujitsu Group
RBA surveys of suppliers (including business partners)• Restructure FDK’s system for responding to key questions from various
surveys• Establish procedures for responding to RBA*1, CDP*2 and other information
disclosure agencies• Contribute to international standards through the Battery Associationof Japan• Maintain 100% rate of surveys conducted on chemical substances
contained in products• Maintain 100% rate of surveys conducted on responsible mineralprocurement• Feedback was provided to suppliers based on the results of the Fujitsu Group
RBA survey.
• Requirements were identified through various surveys.
• Gave responses to the RBA and CDP and gathered information on areas where
we failed to meet targets.

• Continued our activities concerning the formulation of international standards
through the Battery Association of Japan.
• Maintained 100% rate of surveys conducted on chemical substances
contained in products.
• Maintained 100% rate of surveys conducted on responsible mineralprocurement.

Promotion of a recycling-oriented society

Effective use of resources —effective use of resources from various perspectives—*Efficiency, long service life, reduction, savings, recycling• Design and develop products that contribute to conservation of resources• Design and develop products that contribute to improved resource efficiency• Ni-MH batteries
Begin mass production with specifications that change the amount of rareearths used
Develop products with specifications using recycled materials• Alkaline batteries
Introduce new anode additives• Lithium batteries
Develop higher-performance models for the short-distance communication
market• Electronics business
Apply products using low-melting point solder materials
Apply recycling of waste powder to white spot color toner• Development of next-generation technologies
Develop alternative materials
Develop battery performance simulation technology using CAE
Develop elemental technologies• All-solid-state batteries
Reduce usage of rare metals
Efforts to change the rate of cathode material use
Efforts toward stable production• Ni-MH batteries
In addition to changing specifications to reduce the use of rare earths andstarting mass production, also advanced the introduction of a recycled material
model.
• Alkaline batteries
Introduced new additives for all product types.
• Lithium batteries
Advanced the development of higher functionality models for the short-distancecommunication market.
• Electronics businessConducted a basic reliability assessment of solder materials and started applying
it to mass-produced products, as well as shipped the first mass-produced
product using white spot color toner suitable for recycling.

• Development of next-generation technologies
In addition to researching and evaluating alternative materials and developing
CAE-based performance simulation technology , experiments and studies
were conducted for the development of new elemental technologies.
• All-solid-state batteries
Conducted material analysis to reduce the use of rare metals and madeselections to improve the utilization rate of cathode materials.
In addition, we made efforts to improve the process quality rate andconducted surveys on improvements based on changes in specifications, etc.

Enhanced investment in human resources (education)• Planning and implementation of training
Refine the curriculum for level-specific training, raise overall ability levels
through skill development, and enhance training for young employees• Enhancement of training taking talent management into account
Enhance the development of the next generation of leaders, plan andimplement language education for the development of global humanresources• Increasing each employee’s enthusiasm for learning
Promote the use of e-learning and the Dojos, foster a culture ofself-directed learning, and improve employee skills and motivation• In addition to conducting training by job level as planned, group training was
conducted to strengthen communication skills.
• Two employees participated in an external Next-Generation Executive training
program. We also continued the Next-Generation Development Training Program,and one employee participated in a language study abroad program in the UnitedStates.

• E-learning was conducted for those eligible for level-specific training. In
addition, five employees participated in online English conversation classes.
Five new Dojos were also added, for a total of 22 (10 liberal arts and 12
physical education).

Promotion of diversity (inclusion)• Support/continued recruitment of people with disabilities• Facility development (expansion of universal design)• Recruitment activities to comply with the statutory rate of employees withdisabilities and improved knowledge and understanding on the part ofreceiving departments• Planned facility maintenanceInstall multi-purpose toilets, renovate elevators for wheelchair
access• Rate of people with disabilities among employees: 2.43%• Two new multi-purpose toilets installed.

Career and skills development support• Increase in the rate of management positions held by women*150% of the FY2021 level by FY2025• Support for 2nd careers• Provide career and skills development support to increase the rate ofmanagerial positions held by women• Consider opportunities to think about ways for women to work and holdseminars• Development of mechanisms linked to career design training forseniors
Advice regarding future career
Review of executive remuneration system
Advice on future planning; develop and implement life planningseminars• The number of female participants in selective training programs increased by
8% compared to the previous year.
The number of women in Assistant Manager and executive positions increased
by 4.
• On International Women’s Day, our female outside director gave a companyinternal lecture, which was attended by 114 people.

• Career design training for seniors was conducted for executives aged 55 andgeneral employees aged 58.
In addition, three life planning seminars were held during the year, with 191
participants. During the seminar, advice was given on future life planning, andassistance was provided in acquiring knowledge of pension and social
security systems.

Provision of safe and healthy workplaces —promoting comfortable workplaces—• Thoroughly reduce occupational health and safety risks• Enhance occupational health and safety education• Review relevant regulations through evolution of the PDCA cycle foroccupational health and safety risk reduction activities (identification ofsources of danger, enhancement of risk improvement activities)• Reorganization of health and safety education and training plans bylevel and item

• Kosai/Washizu plants: After reviewing related regulations and undergoing an
initial audit to obtain ISO 45001 certification, the audit was conducted andcertification was obtained.
In addition, all sites including head office and FDK Engineering discussed risk
reduction activities.

• Company-wide Health and Safety Management Regulations were revised, anddetailed regulations for health and safety education and management at the
Kosai and Washizu plants were established.

Implementing health management• Obtain recognition as a Certified Health & Productivity Management Organization• Measures to combat long working hours• Improvement of paid leave uptake rate (uptake rate: 70%)
• Support for balancing work and childcare/nursing care (uptake rate among male employees:
30%)• Reduction of high-risk individuals in periodic health checkups/Improved employee
communication• Enhance work–life balance with a view to acquiring recognition as a
Certified Health & Productivity Management Organization• Visualization of the paid leave uptake situation• Raise awareness of childcare/nursing care systems and present casestudies of other companies• Enhancement of health education• A reporting format for long overtime and paid leave use was developed, and areporting scheme was developed at the Central Health and Safety Committee.
• Childcare Leave Regulations were revised.
A seminar was held on “Men’s Participation in Housework and Childcare.”• A newsletter on health, “Health Management in Information Equipment Work”
was published and disseminated within the company.
A smoking cessation seminar was held.

Coexistence with the

2 global environment

Measures to address climate change

Promotion of diverse

3 human resources

Create an environment in which all employees
demonstrate their capabilities to the fullest

Create a workplace conducive to continued
work in good health*1 Responsible Business Alliance (RBA): Defines standards for the manufacturing supply chain to ensure that the working environment is safe and that workers are treated with respect and dignity, and that companies takeresponsibility for the environmental impact of their manufacturing processes and procurement.
*2 CDP (Carbon Disclosure Project): An NGO managed by a UK charitable organization.
Operates a global disclosure system to help investors, companies, nations, regions, and cities manage their own environmental impacts

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FDK GROUP SUSTAINABILITY REPORT 2023

FDK GROUP SUSTAINABILITY REPORT 2023

24

The Story of Value Creation at the FDK Group

Story

Five Prioritized Initiatives

Prioritized Initiative / Materiality
Prioritized theme

Sustainable enhancement

4 of corporate governance/

Medium- to long-term target

Contribution to the

5 sustainability of local

communities and society

Connect with local communities to create aworld full of smiles

25

FY2022 result

Development of a Corporate Governance Policy for the Group• Ensure implementation and operation of the annual report in the Nomination
and Remuneration Advisory Committee<Committee Report Plan for FY2022>
Number of directors and skills matrix report
Report on CEO and director position requirements
Report on criteria and procedures for selection and dismissal of directors
Report on succession planning
Report on independence criteria for outside directors• Formulate a proposal for external disclosure on the company
website and revisions to the website• The annual committee report as described on the left was conducted as planned.
The criteria for determining independence were disclosed externally in the
Governance Report.

• A company governance policy and disclosure plan for the company website
are being developed (under development).

Enhanced accountability to stakeholders• Enhance opportunities for dialogue with stakeholders and respond
appropriately to requests
Customers: appropriate disclosure of information in response to requests
Business partner surveys: timely and appropriate responses• Shareholders and investors: continued consideration regarding theimplementation of dialogue, including information disclosure at
general shareholders’ meetings and on the website
Continue internal information sharing measures (IR/PR/marketingand communications strategy) for planned press releases, including
implementation of measures to improve PR effectivenessContinue to publish explanatory materials for each announcement offinancial results
Timely disclosure of financial results and other matters fordisclosure, simultaneous disclosure of English language versions (asneeded)Provide timely and appropriate explanations to shareholders,institutional investors, and the media, and share communication
results internally
Consideration of holding financial results briefings• Development and publication of Mid-Term Business Plan R2• Responded to external investigations and inquiries as follows
Responses to business partner surveys: 41
Media, investor, and shareholder inquiries: 52
Responses to surveys and questionnaires from media and others: 25• Disclosed IR and PR results in a timely manner at quarterly management
meetings, and continued to submit press release plans and implement
disclosure.
Continued to release explanatory materials for financial results.
Internal discussions were held to set out, review, and discuss the method andpurpose of holding financial results briefings.
• Development and publication of Mid-Term Business Plan R2R2 study meetings were held to confirm the direction of the company,
including its growth strategy, and the schedule was revised to incorporate thelatest situation, given the significant fluctuations in factors such as sales,material market prices, and exchange rates. The content was carefully
examined through interviews and investment review meetings, and the entire
company took action to release R2 by the end of FY2022, but this was notachieved.
(Released on April 14, 2023).

Further integration of risk management into operational processes• Strengthen the foundation of the Risk and Compliance Committee• Restructuring of risk management• Investigate the role of the Risk and Compliance Committee and the risks to beaddressed
A project was initiated to redefine roles and summarize the risks to beaddressed.

• Using the current risk questionnaire, we examined methods for incorporatingrisk management into operational processes.
A study was conducted on how to select potential risks (summarizing risk
areas, identification methods, and evaluation methods).

Strengthen operational risk control by implementing internal controls• Enhance the internal audit system for overseas sites• Prevention of misconduct and prevention of recurrence throughearly detection and rectification of misconduct• Conducted control status checks and improvement proposals for Fuchi
Electronics (Taiwan), FDK Taiwan, FDK Hong Kong, Xiamen FDK (China), and othercompanies.
Conducted an audit of the credit management situation at overseas sites.

• Conducted a survey on compliance with the Subcontract Act in relation topurchasing and made improvements accordingly.
Conducted a survey on security export control and made improvements
accordingly.
Developed plans for corrective measures based on analysis of the causes ofinternal control deficiencies, and made improvements accordingly.

Maintenance of a system for monitoring laws, regulations, and social norms/Ongoingeducation• Promote use of the whistle-blowing reporting desk and promptly respond toreports• Conduct compliance education on an ongoing basis• Whistle-blowing reports received: 4• Conducted e-learning (on copyright/Subcontract Act, etc.) (99.9% attendance
rate)
Conducted level-specific training and field-specific workshops.

Dissemination of information to connect people• Communication with society• Support for safe and secure living• Dissemination of information on disaster prevention• Disaster prevention information is broadcast every Monday on Sonaeru Radio.
Published an educational video on disaster prevention on YouTube.
Sponsored disaster awareness activities in conjunction with the Japan Weather
Association’s “Get to Know Disaster Prevention” program.

Providing opportunities for the future• Provision of learning opportunities• Provision of opportunities to create new value• Support for The Sound of Batteries Powered by the Sun concerts• Twenty performances were held over the year in concert halls and similar venues.

Contribution activities that bring smiles to people’s faces• Contribution to local communities and society• Activities to promote connection with local communities• Activities to promote beautification of local communities

Improved risk compliance

Strengthen systems and supervisory
functions to ensure prompt decision-making
with management transparency andobjectivity, taking into account the positionsof stakeholders

FY2022 target

FDK GROUP SUSTAINABILITY REPORT 2023

• Activities to promote environmental friendliness• Activities to bring lives together• Participated in local traffic safety activities and promoted the purchase of goods
from vocational aid facilities.
• Conducted cleanup activities around company plants, cleaned up facilities, andmaintained local flowerbeds.

• Collected used stamps and plastic bottle caps and donated them to schools.
• Conducted blood donation campaigns, promoted Red Feather and Green
Feather fundraising campaigns, and donated emergency supplies.

FDK GROUP SUSTAINABILITY REPORT 2023

26

The Story of Value Creation at the FDK Group

Story

Health Management

Health Management Declaration
The FDK Group’s philosophy is “Inspiring transformation; shaping the future and creating happiness.” In line with this philosophy, wedeclare that we will work to maintain and promote the health of our employees, who form the heart of our corporate activities, to ensurethat they are healthy in mind and body and can lead fulfilling lives in both the public and private spheres, as well as to realize a vibrantwork environment.
Health Management Policy

Targets
Final target indicators

1. In addition to efforts to prevent lifestyle-related diseases and ensure
early detection of illnesses through appropriate health checkups, the
FDK Group will work to prevent illness among employees and theirfamilies by implementing thorough follow-up measures based on
checkup results.
2. In order to protect the health of all employees, the FDK Group will work
to disseminate information on health improvement with the aim ofenhancing employee health literacy (health awareness and knowledge).
3. The FDK Group will work to enhance communication aimed at realizing
a safe and secure work environment, in which each and every
employee can work with enthusiasm by exercising their abilities andindividuality to the fullest extent.

Reducing the number ofabnormal health findings

Reducing presenteeism

Reducing the number of
employees taking leave

Reducing absenteeism *1

Improving health literacy

Improving knowledge and understanding ofhealth and medical care *2

Improving work engagement

Measures to maintain and promote the health of employees and their

Improving work engagement

families are being actively undertaken.

We plan and implement improvement measures for problems and issues• Conducting influenza vaccinations at company business sites andidentified in employee satisfaction surveys and organizational revitalization

subsidizing the costs

Feeling fulfilled and satisfied at work *3*1 Absenteeism:
Percentage of employees who are absent from work for more than one consecutive month under the
injury and sick leave system (excluding paid leave and accumulated leave)*2 Improving knowledge and understanding of health and medical care:
Percentage of employees who improved their awareness of positive lifestyle changes by attending
seminars and reading health bulletins (survey conducted at the end of the fiscal year).
*3 Work engagement:
Average scores for the two questions “I have a sense of energy at work” and “I feel proud of my work” inthe new Simple Occupational Stress Questionnaire.

diagnostics in order to create a better workplace environment.

• Full subsidies for medical checkups not only for employees but also for• Organizational Revitalization Training for executives and department

their dependents

heads was conducted based on the results of the FY2022 Employee

Measures to prevent passive smoking have included reducing the number

Satisfaction Survey (79 participants)of smoking areas and limiting the hours of use.

• Response rate for FY2022 Employee Satisfaction Survey: 99.1%• A questionnaire on smoking was conducted in September 2023, andStress checks are conducted every year, and the results are used to

the results of the analysis were provided to employees as feedback.

promote awareness of individuals’ stress levels, reduce the risk ofWith the aging population and falling numbers of children, the number ofindividual mental health problems, and improve the work environment

people who are able to donate blood is declining rapidly, and we arethrough group analysis.

actively cooperating in blood donation campaigns as part of our• Participation rate in FY2022: 99.5%

contribution to society.
Blood data figures can provide information about one’s physical condition,

Priority Measures
The FDK Group is engaged in health support activities to maintain andimprove the health of employees and their families and to enhance theirhealth literacy (health-related knowledge). To this end, it has assigned health

FY2022 Results
Previous initiatives

management staff to Group companies in Japan and has worked with the

Measures to prevent lifestyle-related diseases

health insurance association to define objectives and priority measures.

With the aim of achieving a 100% uptake rate for regular health checkups
and secondary health checkups for those with abnormal findings,

Objectives• Build a work environment that is both physically and mentally healthyand safe to work in• Improve productivity by establishing a corporate culture of strong healthawareness• Fulfill customer expectations by allowing all employees to exercise theirabilities and individuality to the fullest extent• Percentage of those with abnormal findings in FY2022: 39.4% (thosewith abnormal findings in any of the statutory checkup categories)

communication in the workplace.

improvements with respect to each of these indicators. To this end, efforts areunderway in the priority areas of
1. Establishing systems from an operational perspective
2. Measures to prevent lifestyle-related diseases
3. Improving work–life balance

Improving health literacy

FDK GROUP SUSTAINABILITY REPORT 2023

Measures to prevent lifestylerelated diseases

Indicators

FY2023targetFY2025targetPrimary checkup uptake rate

99.9％

100％

100％

Secondary checkup uptake rate

92.6％

93.5％

95.4％

Rate of participation in seminars and events

4.3％

15.0%

25.0%

0％

80.0%

100％

Increasing awareness of positive lifestyle changes through provisionof education
Improving work–life balance

FY2022 result

Average rate of paid leave usage

84.8%

85.0％

85.0％

Average overtime hours worked

10.37h10.26h10.06hEffectiveness of Health Management: Outcome Indicators
Priority measures

Indicators

FY2022 result

FY2023targetFY2025targetHealth bulletins are issued and seminars are held based on the results ofPrevalence of metabolic syndrome

13.3％

12.3％

11.3%

health checkups.

Health checkup results

Gynecological checkup uptake rate
(percentage of women who received either cervical or breast
cancer screening)

83.2％

88.0％

90.0％

Situation regarding absence fromwork due to illness

Rate of absences and leave due to mental health problems

0.50％

0.40%

0.30%

Health bulletins:	Gynecological checkups, health management in
information equipment work, effects of smoking andsmoking cessation, teeth and healthSeminars:	Lecture on promoting men’s participation in houseworkand childcare (52 participants), Smoking etiquette (44Status of lifestyle habits and healthbehaviors

participants), International Women’s Day: Thinking about
how women live (122 participants)

27

Priority measures• Total number of participants in walking activities: 1,378• Ground golf tournament, 75 participants in totalsatisfied at work), and created a health management strategy map to facilitate

Effectiveness of Health Management: Process Indicators

exercise habits and energize the organization through improved

indicators related to reducing the number of abnormal health findings

and medical care), and improving work engagement (feeling fulfilled and• Tottori Plant registered as a blood donation supporter

The following activities are being carried out in order to help develop

Target 8,000 steps/day, held twice a year

improving health literacy (improving knowledge and understanding of health• Participants in FY2022: 202

employees are encouraged to undergo health checkups.

In pursuit of these three objectives, we have established a set of final(presenteeism), reducing the number of employees taking leave (absenteeism),so they are being put to good use in order to maintain good health.

Occupational stress survey results

Rate of absences and leave due to other illnesses

0.24％

0.20%

0.15%

Smoking rate

30.5％

30.3％

29.9％

Increase in the number of employees engaged in habitual exercise(total rate of those engaged in health behaviors)

40.7％

43.0%

45.0%

Rate of high-stress individuals

8.4％

8.2%

8.0%

FDK GROUP SUSTAINABILITY REPORT 2023

28