T P MESSAGE

President & CEO

Mission of the FDK GroupFDK aims to contribute in Various manners to society as an energy
management manufacturer .
This has been the mission of the FDK Group , and this mission also has theobjective to contribute to the growth of society and to resolve social issues
through our businesses while following Creating Shared Value (CSV),
which is a concept to realize both the pursuit of profit as economic value
and better social value.
FDK started to manufacture and sell Carbon-zinc batteries in 1950 andentered the Ferrite (Electric magnetic material) business based on theaccumulated material technology for batteries. From that time, FDK has
been conducting research and development in materials as the foundationof technology from electrochemical engineering to magnetic material andpowder technologies to provide products that include Alkaline batteries, NiMH batteries, and Lithium batteries through our battery business today.
In addition to the technology in the battery business above, we have
expanded to various electronic devices, including power supply that utilize
circuit technology and high density mounting technology as well as power
storage systems, which are synergy products that integrate battery andelectronic technologies even further. Moreover, we solve issues whichcustomers faced through proposals suited to their needs from the initialdevelopment and design stage of materials and products by utilizing
FDK s own Computer-Aided Engineering (CAE) in development while also
contributing to the reduction in environmental impact by limiting the use ofmaterials resulting from the prototyping stage.
Through these types of actions, we provide batteries to drive industrial
devices and back-up power supplies related to the safety and security ofpeople that includes medical and nursing care devices as well as disasterprevention devices and movable bodies such as automobiles in addition
to equipment for communication infrastructure that can be used safely
to respond to various needs close to people s lifestyles such as thedesire to have products that can be bought easily and used in a wide
range of applications, the hope to use devices for work, interests andentertainment for a long time, and the need to use devices safely even in
tough environments with low temperatures . FDK also has facilities in Japan
able to produce and rapidly supply all alkaline batteries from D to AAA
required when an emergency situation strikes such as power outages andnatural disasters in addition to providing power storage systems that use
Ni-MH batteries as an emergency power supply.

Michimasa Mochizuki

Even in our Electronic Device Business, FDK energy-efficient products arealso used in an enormous number of fields that include lighting equipment,
computers, smartphones, communication equipment, and automotiveapplications.
As electricity is an essential energy in our lives, energy management,
how to create it, store it and use it wisely, are on-going challenges in oursociety. FDK will continue to provide technologies and products in our quest
to support the ultimate solutions to these challenges.

CSR Management of the FDK GroupFDK formulated the FDK Group CSR Policy and defined seven prioritizedinitiatives as priority actions to put into practice.
In addressing these initiatives, FDK furthers compliance withinternational CSR standards and demonstrates a responsible business
operations as a global company.
FDK has established a CSR Promotion Committee that promotes CSR
activities to expand and standardize the FDK Group Corporate Conduct
Guidelines, which are the basis for CSR activities at the FDK Group, andthe FUJITSU Way, which is a Group philosophy shared as a member ofthe FUJITSU Group, while conducting periodic reviews of new examples ofsocial contributions, the ideal form of a sustainable society and business,and the response status of the seven prioritized initiatives.

Strengthening Corporate Governance as theManagement Base
FDK conducts reviews of its management system and organization asnecessary for each measure based on the general rules of the corporate
governance code as well as introduce other necessary measures because
FDK believes strengthening corporate governance improves the soundness
and transparency of the company and increases value for our shareholders.
FDK has established a Safety and Health Committee, Environmental
Management Committee, Contained Chemical Substance ManagementCommittee, Export Management Committee, and other such bodies toclearly adhere to compliance while establishing a Product Safety Promotion
Committee for consumer issues in addition to enhancing the quality
assurance system to take appropriate action.
FDK Group intends to continually heighten corporate value by aiming tocontribute in Various manners to society as an energy management
manufacturer through the actions outlined above.
June 2017

FDK GROUP CSR REPORT 20172