August 31, 2018
Fujikura Ltd.
Notice and Apologies regarding Cases of Impropriety
Related to the Quality Control of a Portion of Our Products
With respect to a portion of the products manufactured by Fujikura Ltd. and its groupcompanies (collectively, the “Group”), we have discovered that there exist some cases ofimpropriety related to the quality control (the “Cases”)
In response to this situation, we have requested outside attorneys to conduct an investigationin order to ascertain the facts and determine the causes of the Cases. While outside attorneys
are currently conducting interviews with relevant persons and other investigations, we hereby
announce the facts already identified to date and our future measures as stated below.
We sincerely apologize for the significant inconvenience and concern caused to our customers
and many other stakeholders.
Description
1.

Outline of the Case
In order to confirm the quality management system across the Group, we began internal
inspections and checks on the overall quality control of all products in October 2017. The
results were reported in December 2017 and we recognized the possibility that there were
10 cases of impropriety within the Power & Telecommunication Systems Company andother divisions. Since all of these cases were related to individual agreements withparticular customers, we contacted to the relevant customers and consulted with them on
measures for the time being and corrective measures.
Subsequently, in this year, three new cases of impropriety, which related to individualagreements with particular customers, were reported. Accordingly, we again conducted
inspections and checks across the Group in June 2018 with respect to whether there wereany other similar cases, and, as a result of such inspection, 57 cases (excluding the abovethree cases) were reported in July 2018.
Based on these results, we considered it necessary to retain outside attorneys in order toconduct a thorough investigation from the viewpoint of objectivity and fairness andrequested an investigation in August 2018. Specifically, the request includes conducting
interviews with relevant persons, fact-finding, and analysis of the causes with respect tothe cases of impropriety already reported to date, as well as development of guidelines forthe internal inspections and checks on quality control to be conducted on an ongoing basis
in the future.
While the investigation is still ongoing, it was largely found as fact through theinvestigation to date that there exist cases of impropriety, such as cases in which values
different from the actual measurement values were recorded in the test and inspection
documents submitted to customers, quality inspections were not performed as agreed uponwith the customer, or partial changes were made to the manufacturing method that had notbeen approved by the customer. In addition, among these cases of impropriety, 4 casesof procedural inadequacies related to the JIS-marked products with respect to the changing
the quality control system in the JIS certification maintenance audit and some cases ofimpropriety related to the products for use in general were found. As a result, we havedetermined to announce the facts already identified to date.
Details of the Cases (Identified to Date)
Types and Number of Types of
73 types of products, including wires, parts, andcomponents for power transmission and distribution;
Affected Products:
cables for industrial; cables and components forcommunication; and etc.
Types and Number of Cases of
Non-performance or insufficient frequency
of some inspection items:
31 cases
Impropriety:
Discrepancies with specifications or quality
control process charts:
12 cases
Recording of results different from the actual
results in the test and inspection documents:
17 cases
Failure to submit prior application for changeof manufacturing method:
10 cases
Total:
70 cases
Number of Relevant sites:
10 locations (4 locations of our company and 6
subsidiaries )Period covered (time of theSince 1987
oldest case):
Affected customers:
66 companies (excluding the products for use in general,
which are still under investigation)

2.

Impact on the Customers
In our investigation conducted thus far, no safety issues have been identified for theproducts involved in the Cases (the “Products”).
With respect to the particular customers involved in the Cases, we have explained to them
the facts known to us so far, including the details of the investigations, and have alreadyconsulted with them on measures for the time being and corrective measures to be taken.
Since 7 types of products for use in general are included in the Products, there are somecases in which we have not been able to complete identification of the end-users. We are
actively providing explanations to the customers through our sales channels and we plan
to complete the provision of explanations to all customers of the products for use in generalby mid-September.
With respect to the Products already delivered, we have taken measures such as recalling,replacing, or repairing based on consultations with the customers and also taken measures
such as provision of data and related information necessary for continuous usage of theProducts. As for the products to be delivered, we are continuing with delivery following
request from the customers and implementing the necessary measures. However, in thecases where it will take time to implement the measures, we have consulted with thecustomers and have implemented measures such as stopping shipments. We willcontinue to provide the customers and relevant authorities with careful and prompt reports
and explanations regarding the impact of the Cases.

3.

Future Measures
Currently, investigations are underway to clarify the whole truth. Based on the facts
revealed as a result of the investigations, we will formulate thorough measures to prevent
recurrence and take corrective measures. Further, upon completion of the investigation,
we will take appropriate measures, including reporting to customers.

4.

Impact on Financial Results
The impact of the Cases on the consolidated financial results of the Group for the fiscal
year ending March 31, 2019, is unknown due to ongoing investigations. Accordingly,
the consolidated financial forecasts announced on July 31, 2018, have not been revised at
this time. If revision becomes necessary in the future, we will announce such revision ina timely manner.
[Contact information in case of inquiries]
Yoshimura, General Affairs & Public Relations Division, Fujikura Ltd.
Tel: 03-5606-1110
Fax: 03-5606-1501