Relationships with Customers and Suppliers

Relationships with Customers and Suppliers

GovernanceSocial Requirements

The FDK Approach• Increasing importance of product quality andmanagement quality• Expanse of the reliable and safety needs in thesocial infrastructure• FDK Group will take advantage of ecosystems toincrease the value of offerings provided together
with various partners to enable customers to utilize electric energy in diversified ways.

Number of
ISO 9001-certified
production sites

Number ofIATF16949-certified
production sites

Number ofISO 14001-certified
production sites

8747Initiatives Supporting Relationships with Customers and Suppliers ur offerings enable reliable applications for clean and safe electric energy to corporate andO
individual users that support people’s lifestyles
Basic Concept

Examples of Initiatives
FDK Group Initiatives
The FDK Group strives to provide batteries and electronic devices that use
environmentally friendly materials by complying with environmental laws andregulations to heighten our value as a company cultivating the future. As partof 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 2022

Community

Alkaline Batteries with Ultraman and Ultraseven Designs Released
In April 2022, FDK launched alkaline batteries featuring designs of Ultraman
and Ultraseven , characters of Tsuburaya Productions.
Ultraman and Ultraseven are the heroes of Tsuburaya Productions’ tokusatsu TV dramas, and are popular among a wide range of children and adults.
The years 2021 and 2022 mark the 55th anniversary of the first broadcastof Ultraman and Ultraseven, respectively. For many years, we have provided
Tsuburaya Productions with alkaline batteries to support the filming of their
tokusatsu TV dramas, and we have commercialized these batteries to commemorate the 55th anniversary of Ultraman and Ultraseven.
These products can be stored for as long as 10 years. The adoption of rare
metal coating in the cathode case suppresses increases in internal resistancedue to oxidation and outflow of impurities from the inside of the battery, resulting in improved discharge performance and leakage resistance after longterm storage. Because this product offers superior discharge performanceacross a wide range of currents, it can be used in all aspects of daily life aswell as for emergency stockpiling.

Sales Begin of High-Capacity Cylindrical-type Primary Lithium Battery
CR2/3 8LHT
We have added the new high-capacity cylindrical-type primary lithium battery CR2/3 8LHT to our lithium battery product lineup and began sales in
September 2021.
We have already commercialized and sold the CR8LHT (2,850 mAh), a
high-capacity cylindrical-type primary lithium battery that has a low self-discharge rate and long-term storage capability, for smart meter and security
equipment applications. In order to provide a battery suitable for devices
with relatively low power consumption, we have developed the CR2/3 8LHT
(1,800 mAh), which is 11.5 mm shorter than the CR8LHT. This product allows devices to be made smaller, helping to enhance the convenience of theIoT society. In addition, the use of a unique resin gasket with excellent heat
resistance enables long-term use of the product in devices installed bothindoors and outdoors. In addition, this product has been certified under theUL, a safety standard in the United States.

Examples of new product launches (As of April 2022)
Ni-MH Batteries
Cumulative Global Shipments Reach 2 Billion Units

Environmental Conservation Activities

The FDK Group strives to build product development, supply, and quality assurance systems that help resolve social issues, and we work to promote
green procurement based on concepts for continually developing and supplying high-quality, safe, environmentally friendly batteries and electronic
devices able to satisfy customers.

ConsumerIssues

Relationships with Employees

As a Smart Energy Partner that assembles advanced technologies, the FDK Group would like our customers to best utilize electric energy in a safe and efficientmanner, 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.

Fair Trade

Relationship with Society

Number of publicannouncements regarding
products in FY2021

Environment

Relationships with Customers
and Suppliers

Highlights of Relationships with Customers and Suppliers

LaborPracticeManagement Systemucts, and from the perspective of the SDGs, our rechargeable batteries areattracting increasing attention in Europe and the United States for their highrecyclability. We aim to achieve a cumulative total of 3 billion global shipments by 2026.

HumanRights

In June 2021, we achieved cumulative shipments of 2 billion units of ourNi-MH batteries, which are used in a wide range of applications, including
built-in products for dry-cell battery-compatible commercial and consumer
electronics applications, in-vehicle applications, power supply backup, andsecurity applications.
Thanks to FDK’s unique technology, our Ni-MH batteries can be used in awide range of temperatures, and have been well received by many customers
for the characteristics and quality that meet various customer needs, as well
as for the extensive product lineup. Since the start of shipments in January
2010, we were able to reach 1 billion units in December 2015 and cumulative global shipments of 2 billion units in June 2021.
We are committed to manufacturing in Japan so that our products can beused safely and reliably in all applications. Japanese craftsmanship, which
prides itself on precision and care, has ensured the high quality of our prod-

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Relationships with Customers and Suppliers

Governance

FY2021 Achievements

Labor
Practice

Environment

Fair Trade

ConsumerIssues

Community

Management System

Ni-MH batteries	FDK strove to develop high-temperature, high-durability, long-life batteries for the in-vehicle accessories and power backup systems markets, and to mass-produce battery systems for the transportation infrastructure market.
●Alkaline batteries
We have made progress in improving discharge characteristics and leakage resistance.
●Lithium batteries	We worked to improve energy density in order to meet the demands of the smart meter market, which is growing both in Japan and overseas.
●Electronic devices	We have continued to select and focus on each product model to expand sales of various modules for mobility and semiconductor equipment applications, for which
demand is growing.
●
All-solid-state batteries
To support a wider range of applications, we have continued to work on improving durability in harsh environmental conditions.
●Research and development	We conducted prototyping and development of battery modules equipped with a battery management system based on our cell balance patent, as well as a searchfor elemental technologies to make battery modules smarter.

HumanRights●FDK Group Quality Policy

Quality Assurance System
The FDK Group has built a quality management system to achieve the Quality
Policy and Quality Action Guidelines and will always undertake quality assurance activities. As of March 2022, seven of our sites, including thoseoverseas, have acquired ISO 9001 certification, and four have acquired IATF
16949 certification.

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FDK GROUP CSR REPORT 2022

Quality Management SystemImprovement activities: Check activities on-site by top management

FDK Group Corporate Conduct Guidelines
FUJITSU Way
Quality Assurance
Division
Continually strive to ensure
product and service quality and safety
in all aspects of our business activities

Work to build an abundant future together
with customers and society

Sales Group

Business Group
Manufacturing
Departments

Reliability Assurance
Departments

Engineering
Departments

Quality Control Departments

Committee: ProductChemical Substances
Management

Overseas Group Companies

Committee: Product
Safety Promotion

Quality Control Departments

Increasing corporate value

Chart of Each Quality Assurance Verification ProcessQuality Assurance Initiatives
In order to provide quality products and services that satisfy the function andperformance requirements as well as other customer needs, FDK fosters cooperation between management and other various departments. This necessitates the participation of every employee in activities across every processof its corporate activities. The FDK Group engages in collaborative activities
linked to those of each business site, including those overseas, across adiverse product line-up.
Quality assurance divisions actively work to share information with all 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 otherinformation such as expertise and examples of defects. FDK has establisheda Group-wide Quality Management Committees hosted by top management toapproach quality management from a Group-wide management perspective.

Quality Policy: “We will provide customers with quality they can rely on.”Planning

DesignAssessment/testing

Review Risk (management, environment, facilities)
and design reviews, etc.
Reliability assessment of components and products
Reliability assessment of systems

Customer satisfaction
Environmental Conservation Activities

1. We will make quality requests from customers our highest priority andtake swift pertinent action to heighten customer satisfaction.
2. We will strengthen fundamental activities in the development stage andincorporate quality, price, delivery, and environmental considerations intoproduction to help prevent quality issues at the production stage, improve
profitability, strictly adhere to delivery dates, and improve environmentalperformance.
3. We will continually enhance risk management throughout various aspectsof compliance from product safety to the chemical substances containedin products.
4. We will improve manufacturing to thoroughly reduce any loss of quality, suchas process waste and losses from complaints.
5. We will continually improve the quality management system to execute
more effective quality management.

President & CEO

Relationships with Employees

Quality Action Guidelines

Quality Assurance System

Relationship with Society

Our mission is to develop and supply high-quality, safe, and environmentally friendly products that satisfy customers through a basic quality-first approach. 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, productionand even customer service to provide more precise quality management.

1. In order to implement the FDK Group's quality policy, each verification
process, from product planning to mass production transfer, is reviewed
in accordance with quality-related regulations, etc., drawing on a wide
range of knowledge not only from the department itself but also fromother related departments, thereby ensuring more objective assessment.

Convene Group-wide Quality Management Committees“We will provide customers with quality they can rely on.”Philosophy

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

Relationships with Customersand Suppliers

Development with Considerations for Quality and Safety

Improvement Processes of Actions to Strengthen Quality
Assurance

Risk escalation

Judgment
for shipping

Storing, sharing and use ofknowledge
Quality status monitoring andimprovement

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

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