Messages from Management

Contributing to the realization of a sustainable society throughour New Frontier 2012 medium-term management plan
Contributing to global sustainable growthby creating new markets, businesses andtechnologies!
The Furukawa Electric Group launched the medium-term
management plan” New Frontier 2012” in April 2010.
Under this new plan, we have set our sights on capturing
global infrastructure demand, and in looking slightly further
into the future, bolstering research and developmentin the functional materials business. Focusing on thethree environmental fields of the environment, energy
conservation and high-density optical communications, wewill work toward building a “New Frontier” framework thatis capable of generating sustainable growth through thecreation of new markets and businesses. To this end, wewill reorganize our business portfolio, improve our financial
strength and reform our corporate culture. In developing arobust business platform that is more resilient to change, wewill stride confidently toward securing sustainable growth.

Defining “New Frontier”

Masao Yoshida
President

5 Furukawa Electric Group CSR Report 2010

From a geographical standpoint, the Furukawa ElectricGroup recognizes such emerging markets as the BRICs(Brazil, Russia, India and China) and ASEAN (Indonesia,Malaysia, the Philippines, Singapore, Thailand andVietnam), which continue to experience notable growth, asrepresenting its new frontier. Rather than simply drawing
on and applying its technological expertise accumulated
over many years in Japan, we will develop entirely newtailor-made production process technologies that match
individual local needs. At the same time, we will placeconsiderable emphasis on the cross-sectional integrationof businesses and technologies as the means to promotefurther development and progress.
New eco businesses, where global needs continue tospiral, represent another frontier of immense potential.
Economic growth brings with it a host of consequences
including increased energy consumption. While this must be
accepted to a certain degree, if left uncontrolled we run thevery real risk of undermining the global environment due tothe excessive discharge of such greenhouse gases as CO2.
As a Group that harnesses its wide-ranging metal, resin,chemical and other compound processing technologies todeliver functional materials, Furukawa Electric is committed

to addressing this global-scale issue focusing on thefollowing business areas.
1) Next-generation vehicles that curtail CO2 emissions
through reduced use of fossil fuels.
2) Energy/smart grids that produce a transmission networkthat employs IT to ensure the efficient and flexible use ofnatural energy sources including the wind and sunlight in
combination with nuclear and fossil fuel energy.
3) High-density optical telecommunications that realize theultra high-speed, power efficient transmission of large
volumes of data.
Furukawa Electric is building a platform for the creation of
new eco businesses.

Reinforcing initiatives for the environment
Over the past several years, international events withenvironmental concerns as their principal theme havebecome increasingly prominent. For its part, the Furukawa
Electric Group will strengthen its environmental initiatives
through every facet of our operations. In the area of global
warming prevention, for example, we launched full-fledged
efforts to reduce CO2 emissions in fiscal 2009. We haveconducted basic research into the formulation of rules
aimed at adopting a life cycle assessment (LCA) initiativefor quantitatively assessing the environmental impact of ourproducts. Through the next two years of trials on designatedproducts, Furukawa Electric will formulate carbon footprintcomputation standards on an individual product basis
in fiscal 2011. Turning to the issue of biodiversity, andtaking into consideration trends identified during the tenthmeeting of the Conference of the Parties (COP 10) heldin Nagoya this year, we have undertaken several steps
to gather information drawing on our participation in abiodiversity corporate network. At the same time, we will
identify basic policies during fiscal 2010 and pursue stepby-step initiatives from fiscal 2011 to gain an insight intoand evaluation of conditions. Moving forward, the Furukawa
Electric Group will work to fulfill its responsibilities as amember of the global society. We will pursue those major
issues within the international community and ensure
adherence to environmental regulations.

Positioning safety, quality and complianceas cornerstones
Safety, quality and compliance underpin every facet ofour business activities. Furukawa Electric deeply regrets
those incidents that resulted in the issue of two cease-anddesist orders for violations against the Anti-Monopoly Act
by the Fair Trade Commission. I would like to once again
express our sincere apologies for having caused significant
distress among our stakeholders, including shareholders
and customers. Consistent with the recommendations of
the Report of the third-party investigation committee on
violations of the Anti-Monopoly Act, released in December
last year, we are currently in the process of implementing
measures aimed at preventing a recurrence. Looking
ahead, we are determined to stamp out any possibility ofa future violation and to improve our corporate culture.
Working toward a new frontier, we recognize the need tobe constantly aware, while practicing our corporate socialresponsibilities. Only in ensuring compliance while helping
to resolve society’s problems can we hope to convey in an
open and fair manner a strong presence and standing.

Enhancing Social Contribution Activities
With respect to social contribution, we will contribute toa sustainable society through our business operations aswell as philanthropy activities, utilizing the human resources
and business sites of the Group. In an effort to further
encourage activity, we have established a CSR special
award system to recognize outstanding contributions within
the Group. In reporting details of award recipients, we hope
to invigorate an increasingly positive Group-wide response.
Looking to the future, we will expand the scope of theaward to encompass environmental contributions andpromote a wide-range of activities throughout the Group.

Placing high value on communication with ourstakeholders, including customers, employees,
shareholders and residents of local communities, wewill reflect the opinions and requests obtained on ourongoing management. We look forward to receiving
your honest feedback on all these initiatives.

Furukawa Electric Group CSR Report 20106