TM

Better than Ever

F-TECH C S R R E P O R T 2020

Break through the limit!
Afford the best one to the customers
all over the world.

■Editorial Policy
Since FY2010, F-tech Inc. has reported the Group’s environmental and social contribution on a global basis in its“Environmental Activity Report”. From FY2017, the Group has changed its ” Environmental Activity Report” format
to a “CSR Report” format because on the social background that highly values CSR*¹ and ESG*².
We consider this report as a communication tool with our stakeholders with relation to our CSR activities,
offering coverage of our initiatives on CSR promotion system, governance and compliance, human rights andlabor, environmental protection, safety and quality, societal contributions, and more in a reader –friendly
manner.
Going forward, we will strive to provide even more complete details on items reported thus far, including theenvironment and society, while talking measures to ensure continuity.
This report is prepared with reference to the Ministry of Environment’s “Environmental Reporting Guidelines(Fiscal Year 2018 version) ” for environmental matters and to ISO26000 for social responsibility matters.
Furthermore, in this report, the F-tech Group is referred to as the “F-tech Group” or “the Group”.
F-tech inc. is referred to as “F-tech” or “the Company”.

*1 CSR：Corporate Social Responsibility*2 ESG：From the perspective of companies aiming at sustainable growth the 3 areas to be emphasized: the environment (E),society(S), and corporate government(G).

F-TECH CSR REPORT 2020│ 1 │Contents
1
2
3
5
6
8
9
10

Editorial Policy
Table of Contents
Message from the Top
Index of Corporate Activities
Overview of Corporate Activities
Management Philosophy and CSR
CSR System
Governance / Compliance / Risk Management

12 Creating a Comfortable Working Environment
F- V OICE
14Childcare and Nursing Support Initiative
15 Labor and Safety & Health Initiatives
16 Quality Assurance Initiatives
17 Relationship with Shareholders and Investors
18 Relationship with Local Communities

19
21
22
24
25
26
27
28
29

Environmental Philosophy / Environmental Policy
Environmental Management
Mid-term Environmental Plan
Initiatives for Reduction of CO2 Emissions, Water Usage, and Waste Emission
Material Flow
Supply Chain Management
T OPICS
The 10th Global Environment Conference
Environmentally-friendly Products and Technologies
F- V OICE
Developing the Highest Quality and Safe Product30

Global Initiatives

36

Date Collection■Reporting Period
FY2019 (April 2019 – March 2020) achievements and partial contents outside the scopes of the reporting period.

■Reporting Organizations（☞P6）
F-tech Inc. [Reporting sites : 3 sites]
Domestic Subsidiaries [Reporting organizations : 3 companies, 3 sites ]Overseas Subsidiaries [Reporting organizations : 12 companies, 14 sites]

Future predictions, Plans, and Goals
This reporting contains futures with report to the “ Reporting Organizations” in the Group listed above. The statements contained
herein are forecasts based on information current at the time of inclusion and are not conclusion. As such, the results of futurebusiness activities mad differ from the forecasts described in this report.

F-TECH CSR REPORT 2020│ 2 │Message from the Top
The advance to sustainable growth with corporate slogan“Better than Ever”.
Transforming the business structure responds to social changes
The automotive industry is in the period of great change caused by the innovation of CASE and MaaS. In
past 3 years, F-tech Group have been set “Back to Basics, Challenge for New” as company-global policy andpursued world-top-class expertise as a suspension manufacture, As the result, we got the great praises by
the customers and received new business order.
Our living-style started to changed from the beginning of 2020 by the pandemic of COVID-19. The world
have not been released from the threat. We are in the period of the human history that people attack the virus.
Therefore, I raised “Better than Ever”*1 as the corporate slogan of F-tech Group to the employee all over theworld to commit the hearts and proceed powerfully without fear.
The companies is required to change in social value changes. Under our “Better than Ever” slogan, we work
to create new value by the promotion of CSR activities by all F-tech, IT innovation of work process, and theunique technology development. Then, we will realize the social changes and continue to build the flexible
system adapts to them.
Our greatest strength is our “associates power” that enables us to sustain our business for these 70 years.
We advance to sustainable growth and creation the corporate value with taking advantage of the strength,
facing each issues firmly and leading the solution by degrees.

Environmental Initiatives as a core management subject
We are required to take specific actions since environmental thought and counter-measure are valued as
one of CSR activities. F-tech Group recognizes the environmental Initiatives as a core management subject
and makes it strengthen.
The environmental load reduction activities are not only to fulfill corporate social responsibility but also an
important element of efforts to reduce permanent costs, which is the origin of the manufacturing industry. The
activities are worked actively and the issues are pursued by sharing this though as the basic idea in thewhole group,
The 14th Mid-term Plan(three-year management plan) started in FY2020. We definitely carry Important
Environmental Issues which is formulated in the medium-term plan out to archive “New 2030 Global
Environmental Targets”.
The environmental load reduction activities will continue as long as F-tech Group continues businessworldwide. Although the demands from society are becoming more diverse, we have to evolve the activities
with comprehending the importance. I will make all employees have the thought of “Better than Ever”,
cultivate their own perspective, and will continue to engage in activities that are unique to each activity area.
（ ☞P23-25）*1 Best performance ever . Exceeds record highs.

代表取締役社長

F-TECH CSR REPORT 2020│ 3 │Message from the Top
Improvement corporate value through CSR.
CSR Committee activity which started in 2017 archived the third year. It exams to problems related to corporate
governance and internal control, catch important issues and check if the system works to solve them or not. If it
have been not worked, the committee make it settled. The activities are reported in the board meetings timely andstrengthen checking and governance. Also, the committee solve the tasks caught from the exams with eachcommittees under it,“Our Action Guideline Manual” was made for the employee to understand “Our Action Guideline” which is their
origin of all actions have revised in 2019 more. It is easier to understand with some examples. In this year, we will
distribute translated versions to foreign bases and make each employee to understand it.
At the point of Work style reform, not only taking all paid leave for employees and enrichment of childcare leave
but also promotion of diversity and the adoption of flextime system to Japanese bases. Although it was adapted asa provisional measure for covid-19 originally, we work to increase work-style flexibility and improve work-lifebalance.（ ☞P9-14）

The eternal themes : strength, durability and weight reduction
Our products are required to have both strength and durability and weight reduction. We adopted hydroforming,
joining dissimilar metals with iron and aluminum(FSW*²), brush up high-difficulty plastic working technology anddeveloping design simulation technology to achieve conflicting demands. We have completed the optimum productdesign that realizes high rigidity and light weight at the same time.
In the field of manufacturing, Engineering Division have summarized the optimum process setting and equipment
concept, and then completed a series of in-house production of high-quality products safely, with high efficiency
and with minimum energy by Production Planning Division.
The efforts for further weight reduction and new technological developing is worked with the network of thematerial and the body makers. I want to express in the report how I always solve the problems, work diligently on
improvement activities and challenge to create new value. （ ☞P28）*2 Joining dissimilar metals with iron and aluminum is our patented technology.

President of CEO

代表取締役社長Yuichi Fukuda

F-TECH CSR REPORT 2020│ 4 │Overview of Corporate Activities
The Challenge is Identifying Issues and Internal Reforms
Across the Whole Group.
≪Financial Indicators≫■ Sales≪Environmental Indicators≫■CO2 emissions

Sales had been robust until the third quarter due to thegradual recovery trend of the global economy and thediversification of customers. However, sales turned to besluggish in the fourth quarter due to the impact of
COVID-19 and decreased by 7% on a year-to-year
down to 218,712 million yen.

Target: Reduce CO2 emissions per unit of production by
2.8% in FY2017.
In fiscal 2019, the unit CO2 emission rate was 0.415tCO2 per million yen of sales (-6.2% compared to fiscal
2017).

■Amount of water resources used

■ Operating income
Sales to other customers covered the decline in sales ofmain customers, but profits declined due to the impact of
COVID-19 in the fourth quarter, and operating income fell
38% year-on-year to 4.1 billion yen. We will strive tominimize impact of COVID-19.

■ Interest-bearing debt
Although there was investment associated with the orderof the new model from existing customers, the amount ofinterest-bearing debt was on a downward trend as we
reviewed each investment. However, in order to secure
the liquidity on hand due to COVID-19, the amount ofinterest-bearing debt rose up to 51.3 billion yen.

■ Interest-bearing debt ratio

Target: 2.2% reduction per unit of water resources usedin FY2017
The actual amount of water used in FY2019 was 3.06
m3 / million yen of sales (-1.9% compared to FY2017).

■Amount of waste generated
Target: 2% reduction of waste discharge per unit
production in FY2017
The actual result of FY2019 was 0.023 ton/ million yenof sales per unit production (-6.6% compared to
FY2017).
※The "base year" used as the "reduction target" for theenvironmental index has been changed to FY2017.
The details are explained in the Medium-term
Environmental Plan on page 23 of this report.

Although it was 42.6% at the end of 2014 fiscal year, it
has been in the 30% range every year since FY2017 as
we have continuously strengthened the management of
the total asset balance.

Item

Financial Indicators

Unit

FY2015FY2016FY2017FY2018FY2019Sales

1 millionyen

196,343

197,941

226,060

235,361

218,712

Operating income

1 millionyen

6,821

8,035

6,856

6,580

4,088

Operatingincome
ratio

％

3.5

4.1

3.0

2.8

1.9

ROE

％

9.1

12.8

12.8

6.9

0.8

EnvironmentalIndicators

Interest-bearingdebt
balance1 millionyen

58,68659,12959,50846,22051,342

Interest-bearingdebt
ratio

％

42.5

40.9

39.5

33.7

38.3

CO2 Emissions Volume(intensity)

t-CO2/1million
yen sales

0.436

0.483

0.443

0.432

0.415

Water ResourceUsage m3/1 millionyen
Volume(intensity)
sales

3.32

3.43

3.12

3.08

3.06

Waste Emissions
Volume(intensity)

0.038

0.045

0.025

0.021

0.023

ton/1million
yen sales

F-TECH CSR REPORT 2020│ 5 │Overview of Corporate Activities

Global Network10 countries, 11 production sites, and 8 technology development
Not only developing production sites in North America, Asia, and China with cutting-edge facilities, but also we haveestablished development sites in each area to respond quickly to customer’s demands. We are aiming to “level up” theentire Group by the exchange of information in all areas, including quality, development, production, and theenvironment.

GERMANY
Johnan UK Ltd.● ●F.tech Inc. Office UK

FUTIAN MOULD TECHNOLOGY (YANTAI) CO., LTD
煙台福研模具有限公司
F.tech W uhan Inc.
●
偉福科技工業（武漢）有限公司●
城南武漢科技有限公司●
INDIA CHINA ● F.tech Zhogshan Inc.

F-TECH AUTOMOTIVE CONPONENTS PRIVATE
Progressive Tools &LIMITED●
Components(P)LTD.●● Johnan America, Inc.
●F&P Georgia, A division of F&A America Mfg., Inc●F.tech R&D Philippines Inc.
●F.tech Philippines Mfg., Inc.

PHILIPPINES●F&P Mfg., Inc.
●Dyna-Mig, A division of F&P Mfg.,Inc.

F&P America Mfg., Inc.
F.tech R&D North America Inc.● ●Michigan Branch Oﬃce

●Johnan De Mexico, S.A.de C.V.
●FEG de Queretaro, S.A.de C.V.

偉福科技工業（中山）有限公司
偉福（広州）汽車技術開発有限公司

THAILANDF.tech Mfg., (Thailand) Ltd. ●Johnan F.tech (Thailand) LTD.●

CANADA

UNITED STATESOF AMERICA●F.tech R&D North America Inc. European Branch●F&P mfg., De Mexico S.A.DE.C.V.

MEXICO

Reterra Inc.

Johanan Manufacturing
Inc.

●PT.F.TECH INDONESIA
PT.JFD INDONESIA

Kameyama Plant●●

INDONESIA●

Haga Technical Center●●●★
Head office／Kuki Plant●
Equipment Center●

Kyusyu F-tech Inc.

Fukuda Engineering Co., Ltd.

● ● ● … Consolidated Subsidiaries●… Affiliated Companies●… Branch Office★Operational sites in Japan〇Affiliated companies in Japan●Affiliated overseas companies◎Reporting Organizations

F-tech Inc.

Affiliated Overseas Companies［Reporting Sites : 3 sites］★Head office, and Kuki Plant (Kuki City, Saitama)◎★Haga Technical Center (Haga-gun, Tochigi)◎★Kameyama Plant (Kamayama City, Mie) ◎●Equipment Center (Kazo City, Saitama)

3 Domestic Subsidiaries & 1 Affiliated Company[ Reporting Sites : 4 sites]●Fukuda Engineering Co., Ltd. (Kazo City, Saitama)(FEG)◎●Kyusyu F-tech Inc. (Yamaga City, Kumamoto)(QFT)◎●Reterra Inc. (Chichibu-gun, Saitama)(Reterra)◎●Johanan Manufacturing Inc. (Ueda City, Nagano)(Johanan Manufacturing)

Established
CapitalRepresentative
Employees (consolidated)

F-tech Inc.

Main Customers※YANTAI FUYAN MOULD., Ltd, the newly established Michigan Branch
Office, and the European Branch are outside the reporting scope as they
are not mass manufacturing facilities and do not have any significant
impact on the environment.

19, Showanuma, Shobucho, Kuki,
Saitama, JAPAN

12,00010,000July 1, 1947
6,790,370,000 yen
President & CEO Yuichi Fukuda

8,000

8,750 people(Included average temporary employment)

Business Activities●F-Tech Zhongshan Inc. (Guangdong, China)(FTZ)◎●F-Tech Wuhan Inc. (Hubei, China)(FTW)◎●YANTAI FUYAN MOULD CO., LTD(Shandong, China)(FEGY)●F-Tech R&D (Guangzhou) Inc. (Guangdong, China)(FR&DCH)◎●F.tech Inc. Office UK (London, U.K.)●Johnan America, Inc.
●Johnan De Mexico, S.A.de C.V.
●Johnan UK Ltd.
●Johnan F.tech (Thailand) LTD.
●PT.JFD INDONESIA●Johnan Wuhan Inc.
●Progressive Tools & Component（P）LTD.

Number of Employees by Regional Segments

Corporate Overview
Company Name
Head Office Address［Reporting Site : 14 sites］●F&P Mfg., Inc. (Ontario, Canada)(F&P)◎●Dyna-Mig, A division of Mfg., Inc. (Ontario, Canada)(DYNA-MIG)◎●F&P America Mfg., Inc. (Ohio, the U.S.A)(F&PA)◎●F&P Georgia, A division of F&P America Mfg., Inc. (George, the U.S.A)(F&PG)◎●F.tech R&D North America Inc. (Ohio, the U.S.A)(R&DNA)◎●Michigan Branch Office (Michigan, the U.S.A)●F.tech R&D North America Inc. European Branch (Dusseldorf, Germany)●F.E.G. DE QUERETARO S.A. DE C.V. (Queretaro, Mexico)( FEGQ)◎●F&P MFG.,DE MEXICO S.A. DE C.V. (Guanajuato, Mexico)(FPMX)◎●F.tech Philippines Mfg., Inc. (Laguna, Philippines,)(FPMI)◎●F.tech R&D Philippines Inc. (Laguna, Philippines,)(FR&DP)◎●F.tech Mfg., (Thailand) Ltd. (Ayutthaya, Thailand)(FMTL)◎●PT.F.TECH INDONESIA (Karawang, Indonesia)(FTI)◎●F-TECH AUTOMOTIVE COMPONENS PRIVATE LIMITED (Haryana, India)

Automotive parts and released
dies, machines, and tools
development, manufacturing,and sales
Honda Motor Co., Ltd
General Motors Company
Nissan Motor Co., Ltd.
Honda R&D Co., Ltd.
Nissan Shatai, Co., Ltd.
Suzuki Motor Corporation
Toyota Motor Manufacturing
and others

6,000

4,000

2,000

Japan
1,345

Japan
1,415

Japan
1,438

Japan
1,539
Japan
1,490

N. America
N. America 4,696 N. America
N. America 4,073
4,670 N. America
3,552
3,594

Asia
3,009

Asia
3,430

Asia
3,863

Asia
3,986

Asia
3,708

2015

2016

2017

2018

2019

North Amarica

Japan

0

Asia

F-TECH CSR REPORT 2020│ 6 │Overview of Corporate Activities

Our Products Becoming a Top Chassis-suspension Supplier

Established in 1947 as metal-processing company, F-tech began manufacturing automotive parts in 1967 and had been following
the automotive industry’s development for over half a century since then.
We manufacturing suspension components, such as suspension arms, and pedals, which are important safety-related components
in automobiles, using our strong design and technological capabilities along with our unique integrated processing system. We havemanaged to achieve product strength and durability, and weight reductions at the same time, all while maintaining the high quality
required by auto manufacturers.
Going forward we aim to provide overwhelmingly competitive products as an industry-leading global company, strive to create new
added value, keeping in mind our goal to contribute to local communities.

Consolidated sales by regional
Japan,
Asia,
12%
segments
27%(Unit: million yen)

Suspension
component parts
Chassis system

250,000

North
America,61%

CLICK
CLICK

200,000

28,795100,000

26,126

Japan,
25,22922,016
136,450

150,000
Modules

33,001

129,904

N.
America
124,953

133,454
120,433

Mounted components

Control parts

CLICK

50,000Asia, 52,279 67,360 65,909 59,132
49,372
0

CLICK

CLICK

2015
Asia

2016 2017
North America

2018 2019
Japan

Design Technology Capability

Pursuit of Cutting-Edge Processing Technology

By utilizing our proprietary analysis technology, we arepromoting development based on product performance
predictions from things like runtime suspension system,

In addition to hydroforming and friction stir welding (FSW)
technologies, we have also developed FUT-1, an ultraprecise plastic processing technology that allows for optimal
thickness adjustment.

Hydroforming

FSW

FUT-1

CLICK

■Kameyama Plant 50th Anniversary Ceremony
On 23rd August 2018, The ceremony was held in
the plant. It has started from Wada factory andgrown as a world-class leading plant.

■Kuki Plant 40th Anniversary Ceremony
On 21st September 2019, the ceremony was heldin Kuki city. We expressed the history and next
goals with former directors and contributors.
F-TECH CSR REPORT 2020│ 7 │Management Philosophy and CSR
Corporate Philosophy
Challenging Spirit

Respecting People

Making Profit

Mission Statement
From a global perspective, we strive to contribute to our society and to improve the quality of life
through manufacturing of the highest quality products with ambition and sincerity.

Our Action Guidelines■Compliance with laws and ordinances■Environmental protection

We always give top priority to ethically appropriate conduct in all our
activities. We always comply with laws and ordinances and act with agood social conscience as a good member of society in keeping withbeing a company with a high commitment to legal compliance. If we
discover any violation or possible violation of any laws, ordinances orcompany rules, we will report the matter, make suggestions, and consult
with our direct supervisor or the CorporateEthics Kaizen Desk.

Wewill endeavor to protect the environment, with the belief that the
Earth belongs to all humankind. We always consider minimizing theimpact on nature and optimize energy resource utilization in
production.

Werespect all individual and human rights of our colleagues in theworkplace.
Wedo not tolerateany child labor, forcedlabor, discrimination or any
type of harassment that violates human rights.

■Disclosure and management of information■Respect for human rights■Labor and Safety & Health

We will establish a safe and secure working environment for all our
employees, and maintaina pleasant and safeworking environment.

■Quality

We strictly follow the highest standards and procedures giving toppriority to provide products and services with safety to meet customer's
expectations.

■Compliance with company rules

We create our company's internal rules and regulations based onrational reasoning and relevant objectives to create a fair and equal
working environment and we commit to communicating with our
employees effectively.

■Traflc safety

As a member of the automotive components manufactures, we always
observe traflc safety laws, rules and regulations, being a good citizen on
the road by giving way to others on the road.

■Increasing corporate value

Webelieve the purpose of a company as a going concern is the creationof value. We will always strive to maximize socially accepted corporate
values by bringing profit long-term for our shareholders and society.
We strictly distinguish and manage information from personal, company
confidential, and to be disclosed appropriately. However, we strive to
publicly make available any required information in accordance withrespective laws and corporate regulations appropriately and in a timely
manner.

■Fair transactions

Wealways ensure business is conducted in a free,equaland fair mannerwith transparency, and will not engage or agree with any irrational,
corrupt businesspractices.
Wewill not allow giving and receivingof any benefit or conveniencebeyond reasonableand legal limits socially acceptable, and we will not
maintain any unfair relationship with political parties or government
authorities.
We will never permit or tolerate any relationship or connection with any
anti-social organizations or behaviors which may threatenthe safety andwell-being of our society.

■Community involvement

Being a member of the local community, we support the creation of an
equal, wealthy and well-being of our society through participation in
local community development, promotion of cultural, educational, andthe improvement of the welfareof the local society.

Our CSR Approach
We fully understand that our business activities affect both society and environment, and wepledge to act responsibly based on our philosophies, mission statement, and action guidelines,
as well as to contribute to the creation of a sustainable society and environment.
Realizingthecorporate
missionstatement

Corporate philosophy and CSR

Implementationof Our ActionGuideline

Realizing CSR

Establishment
CorporatePhilosophy
Challenging Spirit│ 8│ F-TECH CSR REPORT 2019

RespectingPeople

Making Profit

Realizing a sustainablesociety

Corporate value

Governance
Human rights and Labor
Quality and Safety
Environment
Society

F-TECH CSR REPORT 2020│ 8 │CSR System
We aim to steadily improve our CSR promotion
system by sharing and establishing values
throughout the Group.
Enhance the activities of eachcommittee and strengthen ties
through the CSR Committee

Verify CSR throughout thegroup and aim to further
improvement

F-tech Group, as a global company, conducts business in
the Japan, North America, and Asia Pacific regions, but
we operate with full awareness and understanding of oursocial responsibilities in each region.
Our offices in Japan and overseas, subsidiaries, andaffiliated companies are all involved in environmental
conservation activities, and the Group also holds anannual group-wide Global Environmental Conference toshare information.
Furthermore, we also promote sharing throughout
the entire Group, including through various nonenvironmental initiatives such as analysis of productquality assurance and workplace safety,reform measures,
governance, compliance, and employee work styles.
Our company-wide CSR committee was launched
in June of 2017 to standardize CSR activities as theGroup and to generate a group-wide synergistic effect.
The company-wide CSR committee aims to even further
globally energize CSR activities while sharing details of
the activities carried out by each department or related
divisions, based on the company philosophies ,mission
statement and actionguidelines.

Before establishing the company-wide CSR committee,
the risk management committee verify “Corporate
Governance” and “Risk Control” of domestic & overseas
related companies and each department in Japan .
In FY2018, the company-wide CSR committee
consolidated the above 2 sheets into the “ CSR
Verification Sheet,” and surveys were conducted .
Currently we have begun to verify the problems andcountermeasures discovered in this survey across allcompanies and departments. Each location has alreadybegun to select important issues from the resultant
themes, and we are promoting self-directed
improvements under the follow-up of the CSR committee .
In order to raise the CSR level of the entire group, thecompany-wide CSR committee will continue to confirm theprogress of autonomous improvement activities of each company
and each department, and collect new information and establish itin the organization, even after 2020.

■Company-wideCSRManagementSystem
BoardofDirectors
ChiefCompany-Wide
CSROflcer

Management Planning
Division Manager

CommitteeChairperson

Company-Wide
CSRCommittee
Regional
Society

Secretariat GeneralAVairsDepartmentof

ManagementPlanningDivision

CommitteeMember

GlobalCommittee
MemberPromotionDirector EachDivisionManager
PromoteMaanager EachManager

PromotionDirector EachSiteManager
PromoterManagerEachRelatedExecutive

PR

QualityassuranceandProductsafety

Qualityassurance
evaluation
Management
meetingplanning
Division
Quality
Assurance
Division

Company-wide
CSRcommittee.
ReportInstruction

Compliance

Environment

HumanRights
andLabor

Corporate
GovernanceCompliancecommittee
Management planning
division

EnvironmentalSafetyand
conference
HealthCommittee
Quality
Assurance
Mgmt
divisionplanning
division

Riskmanagement committee
Management planning
division

F-TECH CSR REPORT 2020│ 9 │Governance / Compliance / Risk Management
We Will Actively Work to Enhance Our Corporate Governanceto Improve Sustainability.
Corporate Governance Structure
The Group has committed management that focusesstakeholders in mind, including all of the shareholders,customers, and creditors, as well as regional societies, andworkers, the Group is endeavoring to maximize theCompany's continuous and long-term shareholder return
as a basic goal for corporate governance.
As the decision-making body for management issues,
the Company’s Board of Directors, consisting of 5
directors (including 2 outside directors), implements
important business executions, legal matters as well
As monitors business executions. We separate themanagement from business execution function byintroducing an executive officer system to strengthen thedecision-making, oversight functions of the Board of
Directors for expediting businessexecutions.
In addition, to ensure monitoring of management, Ftech has appointed 2 highly independent outside
directors,whose external viewpoints are actively
Incorporated into management by receiving opinions andsuggestions from multiple perspective . Moreover, thedirectors' terms of office are limited to one year to facilitate
the Company's ability to respond proactively to changes
in the businessenvironment.
For overseas businesses, the executive officer ofthe head office will be appointed as the chairman of
the board of the overseas subsidiary for each regional
segment, and will participate in important decisionmaking of the overseas subsidiary.

In addition, 2 Director & Senior Managing
Executive Officers have been appointed Global Chief
SED Officer and Global Business Management
Officer respectively, and supervise overseas
subsidiaries in the SED area and business
management area.
As a company that has elected an Audit &Supervisory
Board-style structure, F-tech has the Audit &Supervisory
Board consisting of 4 Audit & Supervisory Board
Members (including 2 outside Audit &Supervisory Board
Members). Each Audit &Supervisory Board Member,in accordance with audit policies and individual work
assignments established by the Audit and Supervisory
Board, audits the directors' performance of their workthrough, attendance at meetings of the Board of
Directors, business operation execution, and reviews its
corporation assets and financial condition.

Reception of the Corporate
Governance CodeWith regards to the Corporate Governance Code (June
1st, 2015/Revised June 1st, 2018) set by the Tokyo
Stock Exchange, we as a company have compiled ourthoughts in our“F-tech Corporate Governance Guidelines(November 1st, 2015/Revised November 29th, 2018),” andour response has been published on our company’s
website. Furthermore, at the point of June 2019 intime, the matters for which the Company provides
explanations are asbelow.

Corporate GovernanceStructure
Shareholder meeting
Selection/Removal

Selection/Removal

Selection/Removal

Audit

RepresentativeDirector
ReportReport↑↓Supervision

Auditor(s)Accounting

Internal AuditOflce
Audit↑ReportAdviseCorporateEthicsCommittee
Risk
ManagementCommittee
Controls andMonitor

ManagementMeeting

GeneralCounsel

Audit &
Supervisory
Board

Board ofDirectors

Audit

Each department, aflliated company,subsidiary

Internal controlsystem│ 10 │ F-TECH CSR REPORT 2019

F-TECH CSR REPORT 2020│ 10 │Governance / Compliance / Risk Management【Supplementary Principle 4-10-1】
Use of operational approach(Consideration of nomination andremuneration committee)
F-tech does not have an optional advisory committee fordiscussing matters such as nominations andremuneration for directors and officers. However, theCompany discusses important matters, including
nominations and remuneration at meetings among
independent
outsidedirectors
andpresidents.
Furthermore, the Board of Directors actively seeks theopinions of directors and Audit & Supervisory Board
Members including independent outside directors andindependent outside Audit & Supervisory Board
Members, taking time to carefully deliberate.

Compliance Initiatives
The Group established its “Corporate Ethics Committee”
in October of 2004 to verify compliance with laws andcompany policies, as well as to prepare and set policies.
This committee also makes decisions related toimportant issues that cannot be handled by individual
divisions, including the protection of proponents, whileproviding
instruction for improvement to relevant
decisions sothat compliance status can be verified at all times. In
November of 2004 we set forth our corporate conduct
standards, “Our Action Guidelines (Corporate Code of
Conduct),” in order to proactively prevent violations oflaws and regulations. In June of 2006 we established our“Compliance Regulations” compliance system with thegoal of improving corporate ethics and legal compliance.
Furthermore, the Company has established a “Corporate
Ethics Kaizen Desk,” a system in which employees andother workers in the Group to directly report or consult
with the Company. In addition to later establishing a

new “Compliance Committee” in September of 2015,
the Company has also set up an “External Suggestion
Window (located within a corporate law office)” andan “Audit & Supervisory Board Member and Outside
Director Suggestion Window” for anonymous reports,
creating an environment where suggestions can beeasily made through multiple points of contact.
Furthermore, we reviewed “Our Action Guidelines” ,revising it to be a more reader-friendly brochure thathas been redistributed to all employees in April of2020, and are participating in ongoing compliancetraining to directors and workers for further
enhancement of our compliance initiatives.

Risk Management Initiatives
The Group utilizes a structure to prevent risk of loss
byrecognizing the risks associated with major
business
operations and placing responsible
managers from professional perspectives in chargeof departments. In June of 2006 we established ourrisk management system, called “Risk Management
Regulations.”
Additionally, in the case of an
unforeseen event such as large-scale disasters, anemergency task force in which the President acts as a
general manager and theVice-President or
responsible director acts as assistant generalmanager is put into place immediately, and discusses
and collects information simultaneously to prevent
additional damages and to minimize environmental
harm. In September of 2015 we established “RiskManagement Committees” throughout each affiliatedcompany in the Group to follow company-wide risks toprevent their reoccurrence.
Since the establishment of the “Company-Wide
CSR Committee” in June of 2017, each committee
between the “Company-Wide CSR Committee,” “RiskManagement
Committee,” and “Compliance
Committee” have been held respectively twice a year.
At the end of each fiscal year, each affiliatedcompany in the Group has conducted its own
verification using checklists prepared for eachbusiness, reporting new countermeasures to the 3committees. After deliberation by the committees, a
final report and verification results from all of theGroup companies are made to the Board of Directors.
These 3 committees identify company-wide issues
related to the Company’s corporate governance andstrengthening of the internal controls system, follow
up on risk regulations, improve upon apparent risks,and develop company-wide measures to prevent risk
reoccurrences throughout the entire Group. The Risk
Management Committee regularly reports Board of
Directors on how to identify, evaluate, deal with risks
related to important environmental
issues, andformulate a Business Continuity Planning (BCP).

F-TECH CSR REPORT 2020│ 11 │Creating a Comfortable Working Environment
We aim to create a secure, safety and comfortable working
environment for every employees based on our philosophy ofrespecting people.
Diversity Initiatives■ Promoting Active
Female Employeesof■Promoting Active Participation of Senior
Citizens

F-tech aims to create a workplace where everyone,
regardless of gender, can show their individuality andabilities. There have been great improvements to ourworking environment in this regard, particularly within
the manufacturing, engineering, development, andprocurement departments, where most employees
were male, and we are actively placing women in avariety of fields throughout the Company. Until 10 years
ago women did not work in manufacturing sites that
handled heavy metal plates. However, in the present
day they can handle them by using support equipment,
and there is much promise in female engineers.
In the future, we will continue to follow the Promotionof Women’s Participation Act, promoting recruitment,
promotion, and leadership training for women as we
aim to expand the overall percentage of women in theworkplace in all fields. On the other hand, we must takeanother look at how men operate in the workplacein order to allow women to participate as well. Goingforward, we will work toward improving the working
environment so that everyone can have a good worklife balance and both men and women can enjoy
fulfilling social lives.

We provide an environment where our employees
approaching the retirement age of 60 can continue towork after retiring, as well as providing information likelife planning seminars aimed at specific age groups. We
launched our “Takumi System” in July of 2019 to provide
a new way for retired employees to work, boosting
retirees’ motivation while passing on their skills. In thissystem, our talented workers with advanced skills arerecognized as “Takumi,” and they play the important roleof instructors who pass on their skills to their successors.
(8 participants at the point of September 2020 in time)

Participation

Change in Female Employment Ratio
Ratio of Female Employees

Number of Female Employees
Number of Female Employees
Ratio of Female Employees■ Empowerment of Foreign Employees
and Revitalization of the GroupAt F-tech we consider it essential to develop cooperation
with our overseas sites. To achieve this, we must secure
diverse human resources. As a result of actively hiring
foreign employees, currently employees of various
nationalities contribute to the Company. Furthermore, we
are accepting short-term trainees from overseas sites
and foreign technical intern trainees. In order to help ourforeign employees understand our operations, we strive
to create a working environment welcoming to foreigners
through methods such as creating multilingual notices
and manuals, as well as through interactions at company
events.
In addition, we consider the custom difference, forinstance, we provide a worship place for Muslims.

■ Active Participation of Those with
Disabilities
F-tech is committed to hiring people with disabilities.
Furthermore, we aim to create a working environment
where every individual can maximize their abilities andfind value in their work, regardless of disability. The
Company continues employment, and our employment
rate of those with disabilities is 2.3% (22 employees),
above the mandatory employment rate of 2.2% (21employees).

F-TECH CSR REPORT 2020│ 12 │Creating a Comfortable Working Environment
Work-Life Balance Initiatives
Following our philosophy of respecting people, F-tech believes that people need a fulfilling private life in order for them
to work with purpose, and as such we place much importance on work-life balance. Furthermore, the entire Groupaims to be a company that is easy to work for, not only for those who need childcare or nursing assistance, but for allof our employees. The following are examples of our work-life balance initiatives.

■ Reduction of overtime work andpromotion of taking annual paid leave■ Support for Balancing Childcare andNursing

Overtime hours are expected to be kept within 20 hours
per month, and we are working with labor andmanagement to manage employees’ time and reduce
long working hours. In FY2019, the average overtime
hours worked by regular employees was 11 hours permonth, and management is clearly working to manage
hours worked and to reduce long working hours.
Aiming for all employees to fully utilize their annual
paid leave, which expires with lack of use, we haveachieved our goal of regular employees taking 100% of
their paid leave for 21 consecutive years.
In order to be able to take half-day paid leave more
flexible for individual employees situation as needed(childcare, school events, nursing care, outpatient
treatments etc.), we have revised our work rules on ourhalf-day paid leave system from 4 times a year to 20
times a year starting in FY2019.
Haga site has already introduced flextime. The head
office and related departments start the trial in Augustof 2020. It allows each employee to be more wellbalanced work-life and has the advantage to be able towork more efficiently. On the other hand, it also has the
disadvantage to cause poor communication in thedepartment members. Toward introducing flextime toother departments, we will blush up the system
according to employees' opinions.
Kuki plant awarded “Gold” certification for its“Diversity of Work Style Practices” by Saitama
Prefecture. Furthermore, our men’s work style revision
initiatives (for instance, the number of men taking
paternity leave) are evaluated, we have got “Gold Plus”
certification.

Since FY2018 we hold a company-wide briefing on worklife balance and a nursing care support system for all
managers, done with the aim of creating a cooperative
working environment where employees can understandeach other’s circumstances regarding childcare andnursing. We also distribute childcare and nursing support
guide book to all employees through our company portal
site.
Between FY2015 and FY2019, 30 female employees
took childcare leave, and 32 of them returned (or will be
returned) (100% took childcare leave, and 97% returned
to work after). The number of men taking paternity leave
has continued to rise, with 9 men taking it after FY2015.
(3 of them took in FY2019)
In order to supplement support during childcare leave,
we have established an interview system with theemployee him/her self, their manager, and humanresource person in charge, before maternity leave andbefore returning to work, in addition to regularcommunication during leave. 14 employees are currently
utilizing our reduced working hours system for childcare
after their return to work (available through completion of
the 3rd year of elementary school). Nursing care leave
can be taken for up to 1 year a maximum of 3 times pereligible family member. As with childcare leave, we
utilize an interview system in addition to regularcommunication during leave.
We drive forward to create a lively workplace where all
employees can balance work and life and work a longtime.

■Initiative for Promotion of Human Rights
Awareness
Based on the Company philosophy “respecting people”,
our employees are provided annual training to respect
others and prevent the occurrence of various types ofharassment, including child labor and forced labor. We
verify the status of compliance to this respect of humanrights of employees every year.
Furthermore, we have established an internal
whistleblower hotline that allows anonymous consults inthe case that a person believes that a human rights
violation or compliance issue has occurred. We strive tocreate a working atmosphere with an open culture where
people can come forward easily.

F-TECH CSR REPORT 2020│ 13 │

F-voice

Initiative for Flexible work style

Using the flextime system,
for refinement of work-life balanceand diversified flexible way of working
Management Planning
Division
General Affairs Department

Kyoko Akashi
Our company had previously introduced a flextime system limited to Research & Development and Sales andMarketing departments, but from August 2020, the scope of departments to which this system applies has been
expanded according to the nature of the work. As a result, in August, the head office to which I belong started trial
operation in preparation for full-scale operation.
I am a mother of two children, and I worked full-time while I raised up my first child. I found it very difficult tobalance work and home life having two children, so I chose to work short time officially from 8:00 to 16:00.
However, with the introduction of the "flextime system," we can now choose a new way of working by starting work
an hour earlier and switching from "short-time work" to "full-time" without changing our working hours.
Although waking up an hour earlier and working more hours has put more pressure on me than ever before, mychildren have grown up and are less demanding than before, so I am now able to maintain a good work-life balance.
With the introduction of the flextime system, I can flexibly decide when to start and end work at my own discretion,and can work, not being restricted by time. However, while this system is flexible, it requires self-discipline. I would
like to continue to maintain a good work-life balance, making the best use of the flexible work hours system.

For the fruitful life at work and home,
active acquirement of the childcare leave!

Production Planning Division Kuki plant
Manufacturing Department Production Planning Section

Yuji Yamagami
I belong to the Production Planning Section and mainly promote the die setup work for new models. I tookchildcare leave for two months and a half from June 2020. I applied for a slightly longer period of time because mywife had a child later in life and this is the first time for her to raise a child, as well as to prevent infection by the newcoronavirus.
I could take the leave due to my supervisor and coworkers’ better understanding about childcare. As a result, I had
almost no anxiety about my work during the leave or after returning to work, and was able to focus on childcare withpeace of mind.
During my leave, my wife and I took turns with childcare and housework, but I was always short of sleep becauseof crying at night and breastfeeding every three hours. I felt horrified if I had not taken the leave.
Just a month after, I finally got used to housework and started to understand the pace of childcare, which allowed me
to spend more time with my child. Thanks to this, he now looks at me in the eye and smiles very often.
During this leave, I was able to spend a very meaningful amount of time with my child. It's an experience that
doesn't come around too many times in life, so if there are any dads out there who are thinking of taking childcare
leave, I hope they will take advantage of it. On the work front, I am now able to tackle my work with a renewed spirit. I
will continue to make die setups with better quality and productivity than ever before.
F-TECH CSR REPORT 2020│ 14 │Labor and Safety & Health Initiative
Improvement through Standardized and Shared Health and Safety
Rules
F-Tech* and FEG have set a company-wide safety
policy for fiscal 2019 as follows: "We aim to improve
the level of safety at all our sites by standardizing
and sharing health and safety rules globally” andexercised the labor and safety & health activities all
across the group.
The Company-Wide Safety Committee, consistingof members from F-Tech and FEG, set "Formulationof unified safety evaluation and rules (routine andnon-routine work)" as a priority item. In addition to"Zero work-related accidents" and "prevention ofwork-related accidents," we are also working to
reduce the number of non-work-related accidents,
such as commuting accidents and traffic accidents.
In fiscal 2020, following on from fiscal 2019, we
have set our company-wide safety policy as "Aiming
to improve the level of safety at all sites throughglobal standardization and sharing of safety andhealth rules", and have set "Formulation andoperation of a collection of prohibited moves andone-point lessons, and operation of risk
management" as new priority measures, and willfurther develop our activities.
Head Office, Kuki Plant, Kameyama Plant, Haga
Technical Center and Equipment Center

Risk Assessment of Chemical
Substances Initiatives
We are working on chemical substance risk
assessments for existing operations at all businesssites. We are making improvements in areas where
improvements are needed in each district. In thecurrent fiscal year, we will continue to make efforts
to prevent occupational accidents caused bychemical substances from occurring.

Strengthening the sharing of disaster
information within and outside theGroup to prevent the recurrence ofsimilar disasters
In fiscal 2019, in addition to taking measures toprevent recurrence by sharing information on pastdisasters, we have been working to prevent similardisasters by horizontally disseminating information on
disasters at affiliated companies.
In fiscal 2020, we will continue to strengthen our efforts
to standardize and share information on a global scale.
We have a system in place to list the information thathas been disseminated and take measures in eachregion for those that require improvements, which arethen confirmed by the Health and Safety Committee.

Risk Assessment Initiatives
The traditional method of preventing occupational
accidents is to investigate actual occupational
accidents that have occurred and work to prevent therecurrence of similar accidents.
In addition to this traditional method, we continued to
implement health and safety activities in fiscal 2019,
mainly in Manufacturing Division, based on a method
called "risk assessment," in which we identify potential
dangers and hazards in each workplace by thoroughly
conducting multifaceted and scientific analysis andevaluation (assessment).
In fiscal year 2020, we will expand this "riskassessment" to the Research and Development,
Engineering Division, and other divisions to further
eliminate occupational accidents.

＜Practicalexample＞＜Practical example＞*GHS pictorial label: A pictorial label that clearly indicates the hazards ofchemical products in accordance with global standards.

*Excerpt from F-Tech seminar material

F-TECH CSR REPORT 2020│ 15 │

Quality Assurance Initiatives
Quality policy of the F-tech Group
Maximize customer satisfaction by delivering the highest value(quality).
Under the 13 Mid-Term Management Plan, we have set group-wide targets to provide the highest value to ourcustomers, aiming to achieve the 「World‘s top quality level」, and have promoted activities to improve quality.
In fiscal 2018, as a result of (1) ZD (zero defects) activities, (2) preventive activities, and (3) quality improvement
initiatives at North American sites, the activities of each Group manufacturing site were highly evaluated and received
numerous awards from customers. nce fiscal 2019, we have continued to strive to achieve the highest level of customer
satisfaction for the entire Group.

Held 33rd Global Quality Joint Conference
Setting targets for the entire Ftech GroupOn December 5th and 6th, 2019, the 33rd Global Quality
Joint Conference was held at Narita View Hotel in Narita
City, Chiba Prefecture, with 46 participants from 15 sites in 8
countries of the Ftech Group (including Kyushu Ftech andReterra), as well as the Quality Assurance, Development,
Purchasing, and Engineering. As this year is the final year of
the 13 Mid-Term Management Plan, we have talked about
the 14 Mid-Term Management Plan to our Our Group sites.
As Ftech Group's quality policy is "Maximize customer
satisfaction by delivering the highest value", we set groupwide targets and shared the following priority measures.
1.
2.
3.

Review of the 13 Mid-Term Business
Plan

Enhancement and penetration of quality systems for
new models
Development and proper placement of quality/fieldtechnical experts
Strengthen irregular measures such as handlingchanges and abnormal products

At the conference, reported the quality performance of eachsite over the past 3 years and future efforts.
1. Quality Results for FY 2017 to FY 2019
・Quality Performance under the 13th Mid-Term
Management Plan
・Quality Performance in Fiscal 2019・ Positive points, reflection points (tasks)
2. Sharing examples of quality improvement
・ Introduction of initiatives and good examples that led toquality improvement
3. Proposed 14 Mid-Term Management Plan (from FY 2020)
Quality Measures Deployment Plan
・ Major Quality Measures Planned for Fiscal 2020
4. Other (TOPIX, announcment etc.)

Explanation of the 14 Mid-TermBusiness Plan PolicyGroup Discussion

Divided into 3 groups and discussed Y-gaya themes.
Various opinions were exchanged from each sites, and it
was a meaningful conference.
・14 Mid-Term Management Group Quality Measures
・Group standardization of drawing validation
・ Efforts to reduce welding defects（ Arrangement of methods for fracture inspection,
application of Teflon nuts, etc.)

Venue: Narita View Hotel

F-TECH CSR REPORT 2020│ 16 │

Relationship with Shareholders and Investors
Enhancement of the overall managerial transparency with Timely
and Appropriate Information Disclosureand targeting the Sustainable Growth
The Company has established its “ appropriate
information disclosure ” and “policy related toconstructive dialogue with shareholders” within the Ftech Corporate Governance Guidelines, and we are
striving for timely and appropriate disclosures of
information.
Appropriate Information Disclosure(F-tech Corporate Governance Guidelines, Article
14)
In its aim to build a relationship of mutual trust with all
stakeholders, including shareholders, the Company
ensures management transparency by disclosing fairly
and in a reader-friendly manner information, including
legal disclosures, management policies, financial status,and business initiatives, as well as procedures andreasons in the appointment of the senior management
and nomination of, directors, and Audit & Supervisory
Board Member candidates.
Constructive dialogue with shareholders(F-tech Corporate Governance Guidelines, Article 34,
Paragraph 1)
Based on the recognition that constructive dialogue withshareholders is essential to enhance sustainablecorporate growth and increased corporate value overthe mid-to long-term corporate value, F-tech uses every
effort to engage in such mutual dialogue.

Communication with Shareholders(Private Investors, and Institutional Investors)
The Company endeavors to disclose information toshareholders, private investors, and institutional
investors both domestically and overseas in a timely
and appropriate manner.
In order for our investors to understand our company
further, we endeavor to create various opportunities
for communication through shareholders’ meetings,
corporate briefings for individual investors, financial
results briefings, quarterly 1-on-1 meetings, telephone
conferences, and exhibitions at various events. We
will continue to work hard and expand the number ofpeople who become fans of F-tech.

Financial results briefing[Policy related to constructive dialogue withshareholders]
Based on the recognition that meaningful dialogue withshareholders is essential to enhance sustainable growthand mid-to-long-term corporate value, F-techapproaches these dialogues based on the following
policies.
１．To the extent reasonable, dialogues withshareholders are conducted by the President & CEO,the director with IR oversight, other management, ormanagers from the division responsible for IR.
２．The division responsible for IR shall collaborate withand engage in meaningful dialogue with the internal
related divisions.
３．We shall explain to our shareholders in anunderstandable manner, the strategies, investments,
and important company indicators related to the Midterm Management Plan, endeavoring to disclose
information for determining mid-to-long-term corporate
value.
４．The IR team plans to conduct multiple IR activities, inaddition to individual interviews, including holding
financial results briefings and facility tours and attending
IR fairs.
５．The executive officer responsible for IR
conscientiously conveys the Company policies toshareholders through dialogue and shares any opinions
he receives from shareholders to directors and others.
６．In order for thoroughly fair information disclose, theIR executive officer strictly controls important non-public
information in accordance with company rules.

General meeting of shareholders

Automotive Engineering Exposition（May, 2019）
F-TECH CSR REPORT 2020│ 17 │

Relationship with Local Communities
We will strengthen relationships with local communities throughenvironmental conservation activities and scholarship foundations.
2019 Sainokuni Saitama Environment
Encouragement Prize
Received the Business site category Incentive
Award
The 「Sai-no-Kuni Saitama Environment Award」 goes to individuals
and organizations that are engaged in environmental conservation
activities and companies that are engaged in social contribution
activities related to the environment in order to foster awareness andpromote environmental conservation activities. In February 2020, Ftech received the Encouragement Prize in the business site category
for our exemplary corporate efforts in environmental conservation andour long-standing contributions to the local community, including ourreforestation and river cleanup activities at our head office and Kuki
Plant.

F-tech Scholarship Foundation
Ftech established the Ftech Scholarship Foundation in2016 to support undergraduate and graduate students withhigh aspirations and academic aspirations for the future. It
became a public interest incorporated foundation in 2017and continues to provide scholarships to about 30 students
every year. Through scholarships, we will provide concrete,
systematic, and lasting support to outstanding students inJapan and overseas so that they can absorb various kindsof knowledge and experience various things. We will also
contribute to the development of a global society by
developing useful human resources who can contribute to
the improvement of Japan's international status, thedevelopment of culture, technology, and science.

Ftech's Reforestation、
2nd Agreement period contract concluded
2020～2024
As of fiscal 2019, we have concluded our 1st 5-year agreement with
Saitama Prefecture and the Saitama Agriculture and Forestry Public
Corporation. Still there is room for the continuation of activities in theagreement area, so the period was renewed to the 2nd agreement
period (2020 to 2024).

Typhoon No. 19 disaster relief volunteer
On October 12, 2019, typhoon 19, the strongest typhoon in the past,landed. Along with the approach and passage of the typhoon, we hadrecord heavy rain that we had never experienced before, and we were
hit by large-scale river flooding and landslide disasters. In this typhoon,
water was supplied to lake and park in Toda City, Saitama Prefecture,
which has the role of preventing flooding into Tokyo by storing water asa regulating reservoir when the Arakawa River is in danger due torising water levels, thereby preventing large-scale flood damage in theTokyo metropolitan area. However, in exchange for this, on December
1, F-tech conducted a cleanup of the flooded park as a gathering of
Honda related companies, called "Keyaki no Kai," in which flotsam
were removed.

Ftech's Reforestation

Sainokuni Saitama Environment
Encouragement Prize

Typhoon No. 19 disaster relief
volunteer

Scholarship student
meetupClean-up activities(Haga Technical Center)

Adapter Program(Kameyama Plant)

Rivier Clean-up(Headquarters and Kuki Office)Status of biodiversity initiatives
In fiscal 2017, we strengthened our domestic goal to achieve aparticipation rate of at least 25% of the total number of employees.
Thanks to the cooperation of many employees, in fiscal 2019 weachieved our goal with a participation rate exceeding that of theprevious year.

F-TECH CSR REPORT 2020│ 18 │

Environmental Policy/Environmental Philosophy
We will work to reduce the environmental impact of our vehicles
throughout their life cycles.
Basic concept toward the environment
As a manufacturer of automotive components, Ftech
has long cultivated its technologies in the design,development, manufacturing, and sales stages inconsideration of safety in its integrated processing
system. Now, the sales of fuel-efficient vehicles andheavy vehicles such as batteries for electric vehicles
and hybrid vehicles are becoming mainstream. In order
to be able to continue to be chosen as a company thatis expected by automakers, it has become a challenge
to be able to mass-

produce products that are safe, lightweight, andenvironmentally friendly, and that contribute to the fuelefficient performance of automobiles.
Automobiles require large amounts of environmental
resources from procurement to R & D, production,transportation, use as vehicles, and disposal. Our
company believes that it can contribute to a sustainable
society if it is aware that its business activities fall within
the life cycle of automobiles and proactively works to
reduce the environmental impact of all its businessactivities.

Ftech Environmental Philosophy
In order to become the top runner in the area of the environment in the automotive industry, we will
make the most effort to establish a future with rich nature and low carbon by having each of ourassociate's extending their understanding of global environmental issues and proactively engaging in
the continuous preservation of the environment in all areas of our corporate activities.

F-Tech Basic Policy（１）In order to form a sustainable society, we will work on reduction of environmental burden andconservationof biodiversity in all business activities related to the manufacture of undercarriage automobile parts.
・Work to reduce environmental burden throughout the product’s life cycle.
・In the development area, we will reduce Co2 emissions by reducing the weight of our products.
・Conserve resources and save energy in all our business activities.
・Continue zero emissions of waste in all our business activities.
・Work on social contribution activities leading to conservation of biodiversity.
（２）Comply with laws concerning environment and energy and other requirements to agree.
（３）Strive to continuously improve the environment and energy management system and prevent pollution.
（４）Establish environmental and energy targets and review them on a regular basis.
（５）Ensure that you can use information and necessary resources to achieve environmental and energy
targets.
（６）Train people with high awareness of the environment through energy saving activities andenvironmental
preservation activities.
（７）Strive to introduce energy-efficient products, equipment and services.
（８）Disclose environmental information on business activities appropriately.

F-TECH CSR REPORT 2020│ 19 │

Environmental Policy/Environmental Philosophy
Map of important issues in the environmental field
Ftech has identified important issues regarding its environmental activities, taking into account requests andexpectations from stakeholders, including customers and local communities. The materiality of the identified important
issues is identified by lighting with our company's business criticality and the current level of initiatives, and isreflected in the company's mid-long term business plan.

Critical Issue Identification Process
Sorting and identifying issues andrequirements from stakeholders

Reflection in mid-long termbusiness plans

Identifying Ftech's“Critical Issues Map”

Key Issues Map

Important

Requests and expectations from stakeholders

Conservation of biodiversity
Management of chemical substances
Partnerships with suppliers and value chains
Strengthen overall management of substancesof concern
Social Contribution Activities

Reduction of CO2 emissions
Contributing to automobile weight reduction anddeveloping products that take safety and theenvironment into consideration
Resource conservation, reduction of water andwaste

Establishment and reinforcement of anenvironmental management system

Environmental preservation of air, water and soil
Compliance with environmental laws and standards
Development of environmental and energy-saving
human resourcesGroup expansion of energy management system(ISO 50001)

Providing data to various major suppliers

Important
Importance in ourcompany

Important environmental issues
As part of its efforts to realize a sustainable society,Ftech is working to reduce its environmental impact byfocusing on the following important environmental
issues: reduction of CO2 emissions; environmental
conservation of air, water and soil; reduction of
resources, water and waste; management of chemical
substances; development of environmentally friendly
products; and conservation of biodiversity.
In 2017, we established quantitative targets for CO2
emissions reduction, water resource reduction, andwaste reduction as part of our 2030 Global
Environmental Targets ,but in 2020, we revised our 2030
targets. This is due to the significant difference in thecurrent situation from the standard of 2013. There havebeen various changes in the past few years, includingchanges in production conditions at each site, changes
in production facilities, and the construction of newplants. Therefore, the base year was changed to 2017,
and the volume of reduction was revised to the samelevel as the 2013 base year, and the target value wasset.

New 2030 Global Environmental Targets■ Reduce CO2 emission intensity by 18%
Base year: Comparison with FY 2017 Index:
Sales■ Reduce water consumption intensity by 14%
Base year: Comparison with FY 2017 Index:
Sales■Reduce waste emissions intensity by 13%
Base year: Comparison with FY 2017 Index:
Sales※CO2 emissions target: Energy used in the plantExcluded item: Distribution, company vehicles, welded
CO2 gas※In order to improve consistency with greenhouse gas
emissions and water resource use, sales include
intergroup transactions.
F-TECH CSR REPORT 2020│ 20 │

Environmental Management
We will enhance our management systemwith ISO 50001 as the core.
All Ftech environment management system
In order to minimize the environmental impact of thebusiness activities, our group is promoting ISO 14001
certification, an international environmental standard. In 1998,
we began efforts to acquire ISO 14001 certification at ourdomestic sites, and all our development and production sites
have been certified. Aiming to acquire certification for all
overseas production sites, the most recent example is a
Mexican production site established in 2012, completed
certification registration in May 2017. The remaining sites(FEGQ/FTI) will work on a mid-long term plan to acquirecertification.
In our group, we began global expansion of ourenvironmental activities in 2008. In 2013, we obtained ISO
50001 certification, the international energy standard, and in
2015, we issued the Global F-tech Energy Management
System as a common system to all Group companies. We are
now working to expand ISO 50001 certification to our overseas
sites.

Organizational structure
In conjunction with its global environmental expansion in
2008, our group established an environmental management
system led by Japan. We have established an environmentalorganization system by appointing a person in charge ofpractical operations at each overseas site, with the manager ofthe site in charge. (See figure below)

Status of compliance with environmental laws
and regulations
Based on our group's Environmental Philosophy, we are
striving to comply with regulations of each country and region
and requirements of stakeholders by utilizing the ISO 14001
environmental management system. There were no major
environmental violations, fines, or other serious accidents in
FY2019.

Development of core energy-saving
human resources
Our group is working to train core energy-saving
personnel who can perform energy audits, which areessential for ISO 50001 compliance. As energy
diagnosticians are required to have a high level ofexpertise in diagnosis and analysis based on theirknowledge of facilities and energy conservation, we
believe that it is an urgent task to develop humanresources that will be the core of such expertise.
At the Global Environmental Conference held in FY
2019, 32 participants from Japan and overseas were
provided with elementary education, one of the main
measures being the development of energy-savingcore human resources. In the future, we plan andimplement higher level education to further enhance
our expertise.

Internal Environmental Audits
For our company's global expansion of theenvironment, it is important to ensure that theenvironmental management system and energy
management system in Japan, which will be the core,
are compatible with the systems and standards. To
confirm this, we conduct internal environmental audits
periodically.
In order to conduct effective audits, our company
regularly holds seminars for internal environmental
auditors and strives to continuously increase thenumber of auditors. We conduct highly impartial audits
by having auditors from various divisions participate inaudits. In fiscal 2019, 25 auditors participated in theinternal audit, an increase of 1 from the previous year.

■ FtechGroup's Environmental Management System
Director in Charge of Environment (Division Manager of Quality Assurance Division)
JPN Secretariat
Global Environment Conference

General management of all Ftech

4 bases in Asia and Oceania

3 sites in China

7 bases in North America

6 sites in Japan *Site Manager

Site Manager

Site Manager

Environmental Management Officer

Environmental
Management Officer
Person in charge ofpractical affairs(Local Staff)

Japanese
expatriates(Support)

related department

Environmental
Management Officer
Person in charge ofpractical affairs(Local Staff)

Japanese
expatriates(Support)

related department

Environmental
Management Officer
Person in charge ofpractical affairs(Local Staff)

Japanese
expatriates(Support)

related department

Site Manager
Person in charge of environmental management
Environmental Management Promotion Officer

related department＊ Six domestic sites include domestic subsidiaries.

F-TECH CSR REPORT 2020│ 21 │Mid -Term Environmental Plan
We aim to improve the level of the entire Groupby sharing know-how.
Report on the Results of the 13th Mid -Term
Management Plan (Environmental domain)
At our company, the domestic plants lead the Group in
developing environmental plans. We are working to improvegroup-wide efforts to reduce environmental impact, while
sharing the know-how of the Group and incorporating the effortsof domestic and overseas sites.
The development of ISO 50001 *, which is the key toachieving the 2030 global environmental targets, was expanded
to F & PA in North America in 2015, FTZ and FTW in China in
2016, and FMTL in Thailand was completed in fiscal 2019. 7
targeted overseas production sites are remained.
In fiscal 2019, we reviewed our 13th Mid-Term Management
Plan (Environmental domain). The two main fixes are:（1） Review of 2030 Global Environmental Targets（ Please refer to "P. 19 Environmental Issues" for details. ）（2）Review of ISO 50001 horizontal deployment methods

We had planned to expand ISO 50001 from eachbenchmark site in North America and Asia Pacific tooverseas sites that had not yet introduced 50001. However,as our benchmark sites are too busy to operate their own
ISO 50001 and have a little know-how on expanding
horizontally, Ftech will expand ISO 50001 to the remaining 7
sites. In December 2019, a policy briefing on the next midterm management plan was held for overseas business sitemanagers, and it was confirmed that overseas businesssites that had not yet introduced ISO 50001 in theenvironmental field would introduce ISO 50001 in the 14th
mid-term management plan.
＊ Group expansion of ISO 50001 ：In October 2013, Kameyama Plant in Mie Prefecture became thefirst domestic manufacturer specializing in automotive parts toacquire ISO 50001 certification for its energy management system.
In 2015, upgraded Kameyama plants effort and issued the Global
Ftech Energy Management System. These guidelines cover all
the requirements of ISO 50001 and add our company's uniqueknow-how. These guidelines are shared by the entire Group andpromoted for horizontal deployment at all production sites.

■ Results of the 13th Mid-Term Environmental Plan （2017～2019）
Target: Ftech Group (6 domestic and 14 overseas)
PeriodDeployment Content
・Reduction of CO2 emission intensity

Plan

Result⇒（Unit:t-CO2 / Sales 1 million yen ）Evaluation
Plan・Reduction of unit water consumption
Result⇒（Unit：㎥/ Sales 1 million yen ）Evaluation
Plan・Reduction of waste discharge unit
Result⇒（Unit:ton/ Sales 1 million yen ）Evaluation
Plan・Publication of environmental reports
Result⇒at production sites
Evaluation
・ISO 50001 compliance at overseas
benchmark sites

・ISO 14001 (2015 revised ver.)certification
Acquisition target: Ftech Group

2017

2018

2019

ー(Base year)

0.436(1.4%improve)0.430（2.8％ improve ）0.443

0.432(2.5％improve)⇒〇

0.415(6.2％ improve)⇒〇ー(Base year)

3.08(1.1%improve))

0.305(2.2％ improve)

3.12

3.08(1.3% improve)⇒〇3.06(1.9% improve)⇒△ー(Base year)

0.025(１％ improve)

0.024(２％ improve)

0.025

0.021（17.5％ improve ）⇒〇 0.023（6.6％ improve ）⇒〇〔 preparation for issuance 〕 ［ preparation for issuance ］〔 internal publication 〕

preparations for issuance⇒〇 preparation for issuance⇒〇 Some site are unissued. ⇒△〔 Asia Pacific complete 〕

Plan〔 Start in Asia Pacific 〕〔 Asia Pacific complete 〕

Result⇒Evaluation

Manual maintenancecompleted ⇒〇FMTL2/3 supportcompleted⇒×

FMTL Self-declaration complete ⇒〇Plan〔 system construction 〕〔finish transfer〕〔 continuous development 〕［ Start in North America ］

NA Reviewed due to theimpact of covid-virus

Result⇒Transfer completed⇒〇
2 sites not completed ⇒△Evaluation〔plan training curriculum〕〔construct training curriculum〕 〔complete training〕
Plan・Development of core energy-saving
Result⇒human resources
Training complete⇒〇
planning completed⇒〇
Curriculum constructed⇒〇
Evaluation〔grasp of the current situation〕
Plan〔consider measure〕〔 Brushing Up Guidelines 〕
・Assessment of biodiversity
Result⇒Grasp complete ⇒〇Finish considering⇒〇
Finished brushing up⇒〇
Evaluation〇: Target achieved, △: Achievement of 70% or more but less than 100%, ×: Achievement of less than 70%
The goals of "Development/Engineering" are withheld from the viewpoint of confidential information.
F-TECH CSR REPORT 2020│ 22 │Mid -Term Environmental Plan
Environmental domain
Start of the 14th Mid-term Plan
■14th Mid-Term Environmental Plan Process
In the formulation of the next mid-term plan, the 14th mid-term environmental vision was decided as "Realize theenvironmental top runner" following the 13th mid-term plan. We have also summarized the changes in the internal andexternal environment surrounding our company as shown below, by considering the Key Issues Map (P. 19) .

Formulation and development of the 14th Mid-term Plan
Our company's strengths and weaknesses were used as an internal environmental analysis, and our company's opportunities
and threats were taken into account as an external environmental analysis to identify issues to be addressed in the environmental
domain of our company. By this analysis, we have set targets as a business plan in the environmental domain and summarized
the main measures we are taking in the diagram below. These key measures are being implemented as common goals for the
Ftech Group at domestic and overseas bases.

Toward the Realization of a Sustainable Society
Ftech is implementing its mid-term plan to address our company‘s important environmental issues and achieve the 2030
Global Environmental Targets (P. 19) in order to realize a sustainable society. By identifying the issues and solving them groupwide, we will become an environment top runner in the automobile industry which is Ftech’s environmental philosophy.

■Main measures of the 14th Mid-term Plan
deployment plan

Period
2020

2021

2022

・Reduction of CO2 emission intensity
compared to FY 17(unite:t-CO2/ Sales 1 million yen)

0.424(4.2％improve)0.418（5.6％improve）

0.412（７％improve）

・Reduction of water consumption intensity
compared to FY 17(unit:㎥/ 1 million yen)

3.01(3.3％improve)2.98（4.4％improve）

2.94（5.5％improve）

・Reduction in waste emission intensity
compared to FY 17 (unit:ton/ 1 million yen)0.024(3％improve)0.24（4％improve）

0.024（5％improve）

・Publication of environmental reports
at production sites［ official publication(for external) ］［ continuing issue ］［start in 2sites］［Deployment Complete ［deployment completein 2sites］
in 1site、start in 1site］

・Introduction of ISO 50001

・Construction and operation of a global
environmental management system
・ISO 14001 certification(2015 revised ver.)considerConstruct / Expand

operateFEGQ［completion ofsystem construction］

FEGQ［ acquisitionof certification ］
FTI［ completion ofsystem construction ］

FTI［ acquisitionof certification ］

Start in FTI・Strengthening biodiversity initiatives［ Start operation withnew guidelines ］［Total number of participants: ［ Total number of participants:
20% or more of all employees］ 25% or more of all employees ］

F-TECH CSR REPORT 2020│ 23 │

Efforts to Reduce CO2 Emissions, Water Consumption, andWaste Emissions
We will strive to improve data accuracy throughout the Group.
■Results of CO2 Emissions
Target＜ 2.8% reduction in CO2 emissions intensity compared to FY 2017 ＞
In the 4th quarter, production at all sites decreased→ Result＜6.2% reduction＞ cleared the target■Japan ■North America ■China ■Asia

due to the impact of the COVID virus. CO2
emissions decreased by 12,140 t-CO2 from theprevious year. Of the reduction in CO2 emissions,
2,674 t-CO2 of reduction is due to the CO2 emission
coefficient change for electricity at each site, andabout 1,277 t-CO2 is due to the effects of energysaving measures in each site that were identified in
2019, and a reduction of approximately 7,800 t-CO2
is due to a decrease of production. The rest is
assumed to be the effects of measures that have yet
to be identified, but this is a future issue.
By region, CO2 emissions at our sites in China,
North America, and Japan have been reduced bymore than the decrease in sales compared to theprevious fiscal year, and this has led to
improvements.

Intensity(t-CO2/million)■Breakdown by Regionin Fiscal 2019t-CO
2 /2 million yen
CO

t-CO2

■Asia
■China■North America■Japan■ Actual water resource consumption
Target＜2.2% reduction in water consumption intensity compared to FY 2017＞
Water consumption decreased by 61,042 m3 from→ Result＜1.9% reduction＞cloud not cleared the target■Japan ■North America ■China ■Asia

Intensity (t-CO2/million)■Breakdown by Regionin Fiscal 2019

㎡ / million yen

㎡

■Asia
■China■North America■Japanthe previous year. Most of the water used in ourgroup is for cleaning, surface treatment,
electrodeposition coating, and steam in the painting
process, and is closely linked to production.
However, the target was not achieved because theamount of water used could not be controlled alongwith the decrease in sales.
In 2019, we were able to reduce water consumption
by 10,954 m3 through domestic and overseas
measures. However, approximately 34,300 m3 wasdecreased due to a decrease in sales, and the rest
will be unaccounted for as well as CO2 emissions.
There are many sites that rely heavily on water tomaintain the quality of water in the painting process
and to prevent adverse effects on quality. However, itis necessary to further reduce water consumption toachieve the target. We will share effective measures
and work to reduce water consumption through theprioritized management of water in our group.

■ Results of Waste Emission
Target＜2% reduction in waste emission intensity compared to FY 2017＞→ Result＜6.6% reduction＞cleared the target■Japan ■North America ■China ■Asia

Intensity (t-CO2/million)■Breakdown by Regionin Fiscal 2019t / million yen

t

■Asia
■China■North America■Japan※CO2 emissions include energy used at plants and R & D and energy used in distribution.
※In Japan, data from the Kuki & Kameyama plant, Haga Technica Center, and domestic subsidiaries are included.

Before fiscal 2017, some overseas sites had
different views on the definition of waste, so theamount of waste included valuable materials suchas scrap. In fiscal 2017, however, we unified thedefinition of waste within the Group, which led to
improved data accuracy at each site. The amountof waste generated increased by 334 tons from theprevious year. By region, emissions in North
America alone increased by 700 tons due toincreased production. As a result of the decline insales, emissions intensity in Japan and Asia Pacificsites have worsened, but at our China sites, waste
emissions intensity have improved by 18%
compared to the previous fiscal year. This was theresult of measures that reduced 140 tons of waste
by reducing sludge and partial reuse of waste
alkaline solution in the painting process.
F-TECH CSR REPORT 2020│ 24 │Material flow

IN P U T

Fｰtech GroupOUTPUTW aste 6,073 t

W ater resource
798千㎥

Direct landfill outside the company
2,146ｔEnergyelectricity

R&D

196,132 M W h↓

CO 2
City gas
6,014 千㎥

Production

CO

108,364ｔ-CO 2

2

Nature Gas

Stamping

3,026 千㎥ＬＰＧ
3,511 tGasoline

Welding
Paint &

242 k ℓAssembly

Light oil

Company

60 k ℓcar
Kerosene
9 kℓ

Gasoline

CO2

76 k ℓLight oil
3,019 k ℓ

8,179ｔ-CO 2transportation

Customers (automobile manufacturers）

User

・ O U TP U T o f C O 2 e m i ssi ons a r e c a l culat ed b y m u l t iplying I N P U T e n e r gy c o n s umptio n a n d C O 2 c o n ver sion f a c t or .
・The calculation method for CO2 is based on the "Greenhouse Gas Calculation and Reporting Manual" of Ministry of
Economy, Trade and Industry and Ministry of the Environment and "The Greenhouse Gas Protocol" and W RI/WBCSD .
・Domestic power consumption is calculated based on the latest coefficients for each power company.
・The period covered is from April 2019 to March 2020.
F-TECH CSR REPORT 2020│ 25 │Supply Chain Management
We are committed to open and fair CSR purchasing.
Purchasing Policy
The Purchasing Department will conduct fair, equitable, andhighly transparent transactions in accordance with theCompany's "Action Guidelines" and promote initiatives aimed
at coexistence and co-prosperity with suppliers.
(1) Achieve an optimal cost structure(2) Procurement of attractive products with QCD(3) Pursuit of logistics efficiency

Grasping the greenhouse gas
emissions■Greenhouse gas emissions from domestic suppliers
GHG emissions

5000
4000
3000

92.9%

We will strive for mutual understanding with our business
partners as good partners who work together to create better
products, and we will build trusting relationships with them onan equal footing, making full use of each other's wisdom andingenuity, with the idea of coexistence and co-prosperity.

Green Purchasing
The F-Tech Group has established the "F-Tech Green
Purchasing Guidelines" as a basic concept for green
purchasing, which prioritizes the purchase of environmentallyfriendly parts, materials and products.
We request our suppliers to take the following actions.
・Establishment of an environmental management system
・Compliance with environment-related laws and regulations
・Implementation of management of chemical substances in
products
・Grasping and reducing greenhouse gas emissions

Procurement policy briefing
However, in consideration of the prevention of infection
among visitors and our employees at COVID-19, we decided
not to hold the meeting this year and to only distributeinformation.
In April 2020, we distributed materials on our purchasing policy
briefing and examples of our environmental initiatives to 68
suppliers and asked for their cooperation in surveying thestatus of environmental initiatives.

86.4%

87.4%

87.8%
80.3%

3,074

2,669

80.0%
60.0%

1,852

2000

Partnerships with Business Partners

92.9%

81.6%

Grasp rate 100.0%

1,851

1,851
1,486

1,615

1000

40.0%
20.0%

0

0.0%
2013 2014 2015 2016 2017 2018 2019

Grasp rate: The percentage of the cumulative amount of transaction value withbusiness partners covered by the survey out of the total transaction value, excluding
F-Tech Group bases, customers and customer Tier 1s, trading companies andemployee benefit-related, etc.
GHG emissions: The amount of energy used by business partners among thecompanies surveyed in terms of CO2, and the total amount of CO2 emissions after
prorating the amount of CO2 emissions according to the ratio of sales to ourcompany.

Examples of Environmental Improvement(1) We consulted with a recycling company to collect used leather gloves,which had been disposed of as industrial waste, free of charge, and are now
reducing industrial waste by recycling them as recycled leather gloves.
(2) By making 1-way cases used for import and export returnable, we arerecycling the packaging materials and reusing resources, and are considering
further applications.
(3) Optimizing domestic and international transportation routes and improving
the transportation loading ratio to reduce the environmental impact for the
reduction of CO2 emissions.

Management of Chemical Substances
Contained in Products
In response to regulations on chemical substances contained in products,
the Group has established a management system at each site and conducts
IMDS* surveys. Substances that are harmful to humans and the environment
and whose use is prohibited or regulated by law are defined in the "F-Tech
Standards for the Management of Chemical Substances in Products" and theuse of these substances is strictly prohibited.
In addition, through our green purchasing activities, we are working toeliminate the use of these substances with the understanding of our suppliers,
and are providing our customers with products that do not contain thesesubstances.
* IMDS : International Material Data System (Material database for the
automotive industry)

Survey of Environmental Initiatives
1.Survey of environmentally hazardous
substances(1) Energy consumption(2) Amount of water resources used

Responsible Mineral Procurement
We will continue to investigate mineral sourcing that is related not only toconflict but also to human rights abuses, environmental destruction, and otherirregularities, and strive to purchase products that do not contain minerals
originating from conflict zones or high-risk areas.
We use CMRP*(Latest version) as the internationally formatted template that
RMI *(Responsible Minerals Initiative) publishes annually for Responsible

2.Establishment and achievement status of
CO2 reduction
3.Status of Biodiversity Activities

Minerals Procurement Initiative.
*1 RMI: Responsible Minerals Initiative (Conflict Minerals Free Initiative)*2 CMRT: Conflict Minerals Reporting Template

F-TECH CSR REPORT 2020│ 26 │

T OPICS

10th Global Environment Conference

At Kameyama Plant, the 10th Global Environment Conference was held from November 5 to 7, 2019, inviting 35
representatives from 14 Group sites. Through 10 global environment conferences, we have been able to share a totalof 400 million yen worth of environmental measures and contribute to reducing the environmental impact andmanufacturing costs of the entire group. At this conferences, the secretariat announced the following 3 information.

(1) Confirmation of progress toward the 2030 Global
Environmental Targets
We shared the results of the 13th Mid-Term Environmental Plan
up to the first half of fiscal 2018 and the contents of the 14th MidTerm Environmental Plan, reviewed the base year and reduction
targets for the 2030 Global Environmental Targets, taking into
account changes in production status at each site, andreconfirmed the processes for achieving the targets.
As this meeting marks the 10th anniversary, we made it easier
to visualize the status of the horizontal development of measures
reported by each site so that our group's know-how can be fully
utilized. We have also prepared reports to make it easier tounderstand and analyze the progress of each site's environmental
targets. We confirmed that we would utilize existing sharedmeasures and know-how and accelerate the introduction of ISO
50001 in accordance with the promotion status of each site.

■Grand Prize（No.1 site）：
F-Tech Zhongshan Inc.（FTZ)
Improvement of paint sludge drying
In China, the reduction of waste wasan important issue due to the increase in
the processing unit price resulting fromstricter environmental laws. At FTZ, we
focused on sludge, which is discharged
the most, and reduced its volume bydrying sludge
using the waste heat from compressors. Since it was found thatthe weight of sludge could be reduced 33.5% by drying thesludge for 10 hours, the sludge drying area was improved sothat more sludge can be dried efficiently, and the piping of thewaste heat duct was also reviewed.

(2) Strengthening biodiversity activities
Our group confirms that it will strengthen its biodiversity
initiatives and aims to create a low-carbon, sustainable andprosperous society through its business activities.

(3) Priority management of water measures
A total of 640 environmental improvement measures havebeen shared at the conference, but only 42 of them are
related to water. In order to improve the current situation inwhich water reduction targets have not been achieved, weshared the view that "measures to reduce water
consumption in factories" will be the main theme of the next
Global Environment Conference. Our group will work toachieve this goal by strengthening its water measure knowhow.

■ Excellence Award （No.1 Measure）：
F&P mfg.,De Mexico S.A.DE.C.V（FPMX)
Reuse of garbage
At FPMX, the task was the disposeof about 3.4 tons of food waste
discharged from the cafeteria every
month. An investigation into whether
food waste can be effectively recycled
revealed that nearby livestock farms
need it aslivestock feed. We also worked with the environmental authorities
to see if there was a legal problem with outsourcing, andsupported the approval so that livestock farmers could handle it aslivestock feed. It not only reduced food waste but also helped
livestock farmers.

■CSR Award：
F.tech Mfg., (Thailand) Ltd.（FMTL)
Collect and effective recycling of lotteries■Idea Award：
Haga Technical Center
Reduction of waste oil and water in hydroforming process

Lottery is one of Thai
entertainment that many Thai people
enjoy. Of course, most of thelotteries become trash, so we set up
special boxes to collect the lotteries
from employees. The lotteries arethen handed over to a
citizens' group through a nearby temple, and support is provided
to a Down syndrome welfare facility that makes wreaths andflowers for funerals.

In the hydroforming process ofthe prototype department, a large
amount of water is mixed withspecial oil to form water. This
molding water could not be reused
and was disposed as waste oil
because foreign substances suchas other oil and chips adhered from the prototype were mixed. In
the prototype division, an oil-water separator was installed andfiltered to separate water mixed with waste, resulting in a 98%
reduction in waste oil.
F-TECH CSR REPORT 2020│ 27 │

Eco-friendly products and technologies

With our sights set on next-gen vehicles,
we will respond to social needs,
and contribute to the automotive industry

The automobile industry is currently undergoing aperiod of rapid and major transformation.
Notably, joint venture within the industry and market
entry from other industries are taking place.
In addition, the use of motors in place of engines forthe power train, rapid digitalization in the form of
automatic driving, collision avoidance, etc... is inprogress. As such, requirements for automotive
components have gradually been changing.
In response to these trends, there is demand for the
automobile industry to not only meet fuel efficiency andexhaust emissions targets, but also reduce weight inorder to improve electric power costs.
In addition, in order to achieve self-driving andaccurate control of the support systems, a good
stiffness balance of the suspension parts is crucial.
Moreover, the design needs to ensure collision safety.
In order to meet the growing needs of our customers
for improving strength, durability, and vehicle
performance, we make full use of our improved
optimization simulations and mechanical simulations—
Optimization simulation is a method of determining themost efficient product shape.
Collision performance is optimized using this method,
the requirement of which in recent years has become
more strict. In addition, a highly efficient energy
absorption structure and skeleton was constructedusing Ftech’s collision analysis method. This has
made it possible to develop products that meet theneeds of each vehicle.

A 24-hour development system withshared technical capabilities around theglobe
Currently, we have 11 production bases in 10
countries in addition to 8 research and technology
development bases around the world.
In addition to development sites in Japan, North Asia,
and Asia working in coordination, the main roles suchas product development, prototyping, production
efficiency verification, and manufacturability analysis
in each region are allocated efficiently, which enables
a 24-hour development system.

Predicting final product performanceutilizing Ftech's analysis capabilities
In order to meet market demand, various simulation
software are utilized to design chassis products thatare both lightweight and high-stiffness. These
analysis tools are used not only for strength anddurability, but also for steering stability requirements
and to create product designs that effectively absorb
collision energy.

■Pressed-plate torsion beam, an eco-friendly and lightweight alternative
With regards to one of our compact cars that has
started production in recent years, we have changed thetorsion beam—which is a part of the rear axle beam —from a hydraulically molded pipe to a pressed plate.
This is because using plates can maximize the crosssectional area by taking advantage of the degree of
freedom in shape without being restricted by thecircumference, unlike it is the case for pipes.
In addition, compared to the pipe torsion beam, thejoining area of the trailing arm can be increased, which
increases the stiffness of the entire axle beam andenables more stable operation of the car.
Furthermore, since the pressed-plate torsion beam
does not require any special process other than thepress molding process during manufacturing, it can cut
down energy consumption and reduce the amount ofgreenhouse gas emissions and water resources used.
In this way, we will continue to contribute to theautomotive industry by developing parts that meet theneeds for performance such as weight reduction andsteering stability, as well as social needs including
energy efficiency and safety, of our customers.

Torsion beam

Rear Axle Beam

Trailing Arm joining area
F-TECH CSR REPORT 2020│ 28 │

V OICEThe development of safe and highest-quality products

Research & Development Division
Product Development Department
Design Section #2
Senior Chief Engineer

Ryota Sekiguchi
F-voice

We will take on the challenge of continuous technologicaldevelopment and respond to changes in the automobile industry.
I am in charge of designing a component called"AXLE BEAM". It is a type of rear suspension
component mainly used for small cars. This component
requires high strength and rigidity to support the car, buton the other hand, it also acts as a spring by twisting
itself. At first glance, it is a very interesting part that hascontradictory elements.
In recent years, in order to improve ride quality andsteering stability, a method of increasing the stiffness of
AXLE BEAM while using softer coil springs and rubberparts has become a trend. The shortcut to obtaining
higher stiffness is to increase the thickness of the steel
plates. However, this leads to an increase in weight,
which in turn leads to increased pollution due todecrease in fuel efficiency.
We faced the conflicting challenges of increasing
rigidity while reducing component weight. Therefore, I
thought that a different approach was needed. We wereable to solve this problem by making a major change inthe design concept from the conventional "TORSIONBEAM + stabilizer structure" to "A structure with areinforcing material welded to the TORSION BEAM".
In recent years, CAD analysis tools and hardware
have been continuously improving, making it possible toperform simulations in a wide variety of fields.

However, it is not the case that all of the actual
product shapes and performance evaluation results
are as predicted. Our frequent discussions with
prototype, testing, and mass production department
have been fed back to the analysis and productdesign team.
In this way, by the time a product has started
mass-production, a lot of data and know-how areaccumulated and relationships with many people are
created. I like to think the products, technology, andknow-how created in this way are the prime exampleof F-tech's assets. I am proud to be a part of theteam involved in the process.
Today, the automotive industry is facing a major
turning point. A growing number of countries arestarting to ban the sale of gasoline and diesel
vehicles, which suggests the wave of EVs isinevitable. In the future, the components I'm
designing may also be very different from what they
are today.
However, even if the shape of our products were tochange due to the trend of electric vehicles, wewould like to make the most of F-tech's assets that
we have cultivated so far to supply our customers
with safe and highest-quality products.
F-TECH CSR REPORT 2020│ 29 │

CSR～Global Initiatives

Japan
Kuki Plant（Kuki City, Saitama）

FUT-1※ Frequency Change of the Smoke ventilation fan
FUT-1 uses processing oil to improve moldability during press working.
Therefore , the oil burns due to the heat generated through plastic working. So weare using the fan to ventilate the smoke generated during press working.
An inverter is installed in the smoke ventilation fan, but it was set to 50Hz andwasted. Therefore, we investigated the oil smoke amount to see if the inverter
could be operated efficiently by lowering the frequency.
The investigation result showed 35Hz frequency would be efficiently most, but,
we found the smoke would not be exhausted well in some of the parts process.
We tried to review the duct shape and improve it . Now ,we can exhaust thesmoke by 35Hz frequency in every kind of parts process.
As a result , we could reduce annual power consumption 9,760kWh (Equivalent
to Co2 emissions 3,689Kg) by improving the power consumption from 3.7kWh to
2.5kWh.
※FUT-1：F.tech Ultimate Technologies.（Thick Plate Friction Cold Forging.)▲Before▲AfterKameyama Plant（ Kameyama City, Mie）

Paste the heat Insulator to the Evaporator, Delay of the start-up time of the Deodorizing
furnace and Drying furnace
The Paint Equipment of Kameyama plant dose not drain water to theoutside. The evaporator has the key function to warm and evaporate thewaste-water concentrate by using city gas as heat source.
Since the purpose is to evaporate, the surface of the equipment becomes
hot and the amount of heat released is large, causing an increase ofusage of city gas. Therefore we paste heat insulator to the equipment to
reduce city gas usage. Through the monitoring of the time from start-up toreach the optimal temperature, we found start-up time could be delayedby 10 minutes and carried it out.
As a result, we could reduce the usage of city gas by 7,417㎥ (CO2equivalent to 15,426lg ) in a year.

Thermography

Haga Technical Center（Haga Town, Haga-gun, Tochigi）
Contribution to the global environment by reducing parts weight
Q (quality) C (cost) D (delivery) are the three most important factors inmanufacturing of automobile parts, but in addition to these, we are developing
parts that take the environment into consideration. Reducing our parts weightmakes fuel consumption less by contributing to the whole car weight reduction.
Furthermore Less Co2 emissions contribute to the improvement of the global
environment.
Ministry of Economy, Trade and Industry and Ministry of Land, Infrastructure,
Transport and Tourism announced the passenger car’s fuel efficiency goal of
25.4km/ℓ as of Year 2030 on March 31,2020. It needs 32.3% improvement to19.2km /ℓ actual figure in 2016. To achieve the fuel efficiency goal, reduction of
auto parts weight plays a very important role under this circumstance.
Take FR LWR ARM as an example, we have developed 6.348kg develop event
model whose weight reduced by 0.402kg (▲6.3%) compared with theconventional one whose weight is 6.75kg in one in the activity result of theprevious term. If this part is mass produced in the future, gas consumption will be
reduced by 21,185 /ℓ equivalent to CO2 49,191kg in a year. We will continue todevelop parts that contribute to the global environment as “All F-tech”.

No Insulator

With Insulator

Current Model

V0 ModelV3 ModelF-TECH CSR REPORT 2020│ 30 │

CSR～ Global Initiatives

Japan
Fukuda Engineering Co, Ltd.(FEG/Kazo City, Saitama)

Power consumption reduction by installation of demand controller
Power consumption(Total) kwh

FEG installed demand controller to save the power consumption and electricity cost
“Demand controller ” is the device for measuring “maximum demand power (demandvalue)” which is the power value used to calculate electricity charges of the powercompanies. When it is about to exceed the maximum power demand, the service
send a notice to the manager.
As the improvement of the awareness of power saving, we could save the power
consumption by preventing overuse of electricity. Electricity consumption totaled
1,001,478kWh in 9 months from December 2019 to August 2020 after the equipment
was installed. Compared to 9 months from December 2018 to August 2019 before
the equipment was installed, a total reduction reached 133,021kWh (about 11.7%).
This is equivalent to approximately 50.2t- CO2/kwh emission reduction. We
succeeded in significant reduction of about 22.0% by converting the electricity
charges over the previous year in 9 months. We will continue efforts to save more
power in order to reduce the environmental burden.

Electricity Bill amount (Yen)

Kyushu F-tech Co., Ltd.（QFT/Yamaga City, Kumamoto）

Certified as a Bright Company in Kumamoto Prefecture
In order to improve the working environment and treatment of companies and promote
young people’s employment in the prefecture, Kumamoto Prefecture supports the creationof attractive companies for the employees and jobseekers by certifying the BrightCompanies. A bright company is the company whose workers shine lively and cancontinue working with peace of mind. It needs basic 4 requirements.
(1)Satisfaction of employees and their families. (2)Local employment. (3)Stable
management (4)Contribution to the local communities and local economy. If it is certified,
the recognition from the job seekers and schools will increase and Kumamoto Prefecture
will actively promote the company. Besides it , the certified companies can participate in
the limited event for the certified companies and can also have some preferential treatment
under the Kumamoto prefecture official loan system. Kyushu F-tech has applied from 2018,
and as a result of the challenge over 2 years, it was certified as a “Bright Company” inKumamoto in the first year of Reiwa. On October 17, 2019, I attended the certification
ceremony held at the Kumamoto prefectural office. Bright company system has started in2013, 287 companies have been certified and Kyushu F-tech became the one of thecertified companies in 2019. (From 35,000 target companies.).

Retera Inc.（Chichibu, Saitama）

Regeneration of woodland（Chichibu Plant）
In 1996, Saitama prefecture enterprise bureau created the industrial park by developing
227,000㎡ of hills in Chichibu for the purpose of strengthening the financial base, creating
employment opportunities and revitalizing of the local economy. Retera started factory
operation in 1999 and now owns and manages 3 plots. 200 people are working day and night
surrounded by the rich natural forest. As Retera grows , the deciduous trees like cherry
blossoms, quercus, oak and the thickets also have overgrown without being taken care of for
20 years after the industrial park developed. In 2020, we started maintenance project of theforest next to the Retera site by utilizing the prefecture’s budget “Regeneration of woodland”
under sponsorship of Saitama Prefecture and Chichibu City . The forestry association
handles logging and weeding, the employees of Retera were in charge of collecting andcleaning up the fallen trees. He voluntary employees completed the maintenance in Februaryof this year by making use of the time before and after the business hours. Now many
employees enjoy the great view of the town from the hill as a healing place.
F-TECH CSR REPORT 2020│ 31 │

CSR～ Global Initiatives

NorthAmerica
Dyna-Mig, A division of F&P Mfg., Inc.（ DYNA-MIG /Ontario, Canada

Sponsorship to Rotary Club

During September 2019, DYNA-MIG sponsored the Rotary Club of Stratford’s
24th Annual Dragon Bout Festival. Dyna-Mig was noted as a silver Sponsor forthe 2019. Between forty to fifty dragon boat teams take part in the dragon boat
festival every year. The event raises about fifty – thousand dollars per year for
Rotary Club of Stratford and also brings approximately one thousand tourists tothe city to attend the festival. Since the creation of the dragon boat festival
twenty-five years ago, the festival has raised almost one million dollars in Rotary
Club of Stratford fundraising, which they use to support community andinternational projects. Examples of these include the Rotary Hospice Stratford –Perth, which provides a peaceful comfortable home with twenty –four hourspecialized palliative care for those living with a terminal illness; and the
AQUABOX project, which provides simple low cost water filtration systems thatcan provide purified drinking water. The AQUABOX systems are distributed toareas impacted by disasters. Dyna-Mig has supported the Rotary Club ofStratford’s Dragon Boat Festival for many years and will continue to support local
social contribution.
F&P America Mfg., Inc.（ FPA /Ohio, USA）

Installation of rainwater drainage filter
FPA has started on a project to install a specially designed rainwater drainage
filter to prevent surface debris such as metal pieces and wooden pallet debris
from entering the rainwater drainage system.
By installing a total of 10 rainwater drainage filters at the rainwater drainage
outlet in the high-risk trailer parking lot on the north side, we were able toprevent dust from flowing out of the factory.

F&P George, A division of F&P America Mfg., Inc.（ FPG /Georgia, USA）

Earth-day Activity
To celebrate Earth Day, FPG partnered with Pirelli Tire to clean up trash andwaste in the Floyd Industrial Park.
A total of 78 participants collected approximately £ 400 of waste in total over athree-day period.

F. tech R&D North America Inc.（R&DNA /Ohio, USA）

R&D activities for EV vehicles
The Automotive industry is charging ahead with its shift towards the
adoption of electric vehicles. In California, the governor announced a ban on
the sale of new gas-powered cars starting in 2035. For the last several years,
we at R&D NA have focused our efforts on researching EVs. We have made asolid expansion in our development of EV parts for OEMs

Introduction of electronic signature system
We implemented an e-signature system in September 2019. Any file that
requires approval is created in digital format and then processed using esignature. We are working further to reduce our consumption of natural
resources. While this implementation began in just one department, we expect
further reduction of resource-consumption as e-signature expands to thecompany level.

F-TECH CSR REPORT 2020│ 32 │

CSR～ Global Initiatives

NorthAmerica
F&P Mfg., Inc.（F&P/Ontario, Canada）

Maintenance of rainwater reservoir
F&P upgraded the Storm Water Management (SWM) system to further control
the quantity and quality of water entering into the local area. The system wasrecognized that it contributed to the management of erosion and mud flood, andto the protection of water quality in the dialogue between the government andthe local conservation authority.
The filtering system was set to gather mud, salt, sand and oil before water
entering into the nearby stream and protection of the quality of water was
reinforced. Also, the rain water was changed to be flown into the undergrounddrain after it was gathered to the reservoir on the ground. It was modeled
after ”100 year storm”* to prevent erosion by water flow from the reservoir. It
made the reservoir larger and the quantity of drainage was controlled by theorifice plate, which could prevent the erosion.
The construction was completed in October 2019. The rain drainage from thefactory met the requirements by the recommended design and the maintenance,
which not only made the quality of water better but also protected adjacentbuildings.
In addition, the annual tree planting activity of F&P was taken place in April
2019 as one of the management of rain water. The volunteers planted the 40
tamarack trees and the 10 spruce trees and set the fences to protect thereservoir against beavers.
* Heavy rain once in 100 years.

F&P mfg., De Mexico S.A.DE.C.V（FPMX / Guanajuato, Mexico）

Harmony between tree planting activities and the community
Mexico is a very hot country. Afforestation is a popular activity to create a shadeenvironment and refresh your feeling. We planted 30 trees in neighborhood in July
helping to maintain biodiversity. We hold a lecture about the environment at ajunior high school near the company with the permission of the principal on
October.
The purpose of this lecture is to raise young people’s awareness to theenvironmental problems that Mexico has in its economic growth.
During the lecture, students asked some questions and they were very interested
in environmental issues.

FEG de Queretaro, S.A. de C.V.（FEGQ / Queretaro, Mexico)

Distribution of stationery to school children, scholarship support
FEGQ distributes stationery items such as bags and pens necessary forschool children of employees as part of educational support for school children
every year. We also provide the scholarship to those with excellent academic
performance so that they can make use of it for study.

F-TECH CSR REPORT 2020│ 33 │

CSR～ Global Initiatives

Asia
F-tech Philippines Mfg., Inc.（FPMI / Laguna, Philippines）

Conversion of uninterruptible Power Supply(UPS)
As part of our improvement with the aim of reducing cost and contributing to ourcompany wide target of Co2 emission reduction under environment for 26th term, oneof the improvement activities implemented is the conversion of Uninterruptible Power
Supply or UPS.
A UPS is a device that provides battery backup when the electrical power fails ordrops to an unacceptable voltage level. UPS device also provides protection frompower surges.
We converted to the larger capacity UPS which could connect to two computersfrom the previous UPS which could connect to only one computer so that we could
reduce the number of UPS devices.
Even though some of the UPS have not converted to the larger one yet , we expect
an energy savings of 13,547 kWh/year or Php93,342.40/year and Co2 emission
reduction of 7,179 kg-Co2/year. The investment is Php273,000 and the Payback
period is 2 years and 11 months. The cost saving / unit is Php403,200.
F-tech R&D Philippines Inc.（FR&DP / Laguna, Philippines）“Clean, Green and Healthy FR&DP ”

For this term, we worked on clean-up activity, with a “Clean, Green and Healthy
FRDP” as a slogan. Every Monday, Wednesday, Friday, the assigned employees
allot 10 minutes of their time to clean and tidy the FRDP surroundings. Aside frommaintaining cleanliness in the surroundings, the activities keep body moving while
reaping the benefits of the morning sun thus promoting good health too. Through the
combined monetary contributions of its employees, FRDP was able to provide
educational assistance covering the school related expenses for two children from
“ Pequena Casa de Nazareth” .The foundation mission is to provide opportunity andimprove the quality of life for those girls who suffered from physical and emotional
negligence.
F-tech Mfg., (Thailand) Ltd.（FMTL/Ayutthaya, Thailand

Donation activities of reused goods
FMTL installed automatic exhaust fan which automatically turns off at the break timefor 60 and 30 minutes, which reduced 372 kWh/ Day of energy or THB 261/ Day.
Another activity is teaching about the environment to the primary school students. In
order to pass on environmental conservation to the next generation, we taught about
waste sorting.
As a CSR activity, we donate items that are reusable, such as
1, Old calendars to the blind, in order to create a braille book.
2, Lost lottery to people with aphasia, to make wreaths and flower arrangements for
funerals at nearby temples.
3, Cosmetics that are not used anymore, for the corpse make-up to reduce waste.

PT.F.TECH INDONESIA（FTI /Karawang, Indonesia）

Tree planting at the new factory
In 2019, FTI moved to the new factory and declared that we actively work on
environmental protection and corporate social responsibility at the time of its
construction. Various trees were planted in front of the factory as a measure toconserve the ecosystem and prevent air pollution. In addition, we provided baby foodto children under the age of 5 and donated to orphans through temples every month.
This activities are temporarily suspended due to the influence of COVID 19. We hopethat social anxiety will be resolved and these activities can be resumed.
F-TECH CSR REPORT 2020│ 34 │

CSR～ Global Initiatives

China
F-tech Zhongshan Inc. （FTZ /Guangdong, China）

Reduction of waste alkali treatment amountDue to the stricter environmental regulations, the disposal processing price has
increased because waste disposal companies were running short. The waste alkaliin the paint degreasing process contains rust preventive oil and is treated in an oilwater separation tank. The old oil-water separation tank used previously was able
Principle of new oil-water separation tankto remove the oil floating on the water surface, but the oil contained in the liquid
could not be separated and was returned to the degreasing main tank as it was.
Since the oil that could not be removed accumulates, it was necessary toconstantly measure the oil content in the liquid and change the liquid before it
reaches the upper limit of the control range in order to maintain the degreasing
effect, and to extend the change period.

In order to improve the oil-water separation effect, we have currently changed
to an oil-water separation tank that employs new technologies such as
ultrasonic waves and isolation methods. After the improvement, we were able
to reduce the amount of waste of 60 tons of tank liquid and alkaline treatment
chemicals every year, and the treatment cost was reduced by about
RMB¥450,000 .
F-tech Wuhan Inc.（FTW / Hubei, China）

Improvement of air piping for welding jigs
During the manufacturing process, the air piping of the welding jig is often damaged
by welding spatter, causing leakage of compressed air frequently. This problem
cause frequent plumbing repair. This problem affects the pipe repair frequency andincreases repair work. As a result, not only utilization rate of the equipment will drop
but also the quality of the product may deteriorate.
In order to improve this air leakage from the pipe, the equipment management
section and the engineering section jointly examined from the equipment design
stage and decided to use an air pipe protected by a three-layer structure aluminum.
First of all, we introduced a jig that uses 5 sets of aluminum-protected air piping in
December 2018. As a result, there was no damage or leakage of the piping evennow, the air leakage problem was greatly improved, and the life of the piping was
extended at the same time. If we change it to the new type air pipe for all jigs, one set
costs RMB 1,000 to RMB 2,000, and we have already changed 28 sets. We will
introduce the new air pipe to all welding jigs, aiming for "zero air leakage" in the near
future.

BeforeAfter

BeforeAfter

F-tech R&D (Guangzhou) Inc.（FR＆DCH / Guangdong, China）

Improvement of maintenance work place
FR&DCH has improved the work area so that production activities can be
carried out safely. As a result, we could perform better maintenance work forworker’s safety and special equipment. Before the improvement, the positionof the maintenance ladder was bad, and there was a distance from the cranestop position. Therefore, it was difficult to inspect and repair the electric
system of the crane, and there was a possibility of the accidental falls.
As a result of considering factors such as construction safety, impact onequipment, work efficiency, and remodeling costs, we can now perform themaintenance work safely by installing a new ladder and inspection platform at
different positions without removing the old ladder.
F-TECH CSR REPORT 2020│ 35 │

Data Collection
Sales results by customer(Hundred Million Yen)
2,500
Others
2,000

1.2%

FCA

4.7%

Mitsubishi
1,500

0.8%

4.9%

2.9%

4.7%

NissanToyota

1,000

12.7%

Newly-emerging OEM
500

70.0%

GM
Honda

0
2015

2016

2017

2018

Operating income and Operating margin

2019

Operating income
Operating margin（%）(Million Yen)

ROE・ROA

9,000

4.5

（%）
14

8,000

4.0

12

7,000

3.5

6,000

3.0

5,000

2.5

4,000

2.0

6

3,000

1.5

4

2,000

1.0

1,000

0.5

0

0.0
2015

2016

2017

2018

ROE

10
8

2
0
2015

2019

Total assets

ROA

2016

2017

2018

2019

2017

2018

2019

Capital-to-asset ratio(Hundred Million Yen)
1,600

（%）
35

1,400

30

1,200

25

1,000
20
800
15

600

10

400

5

200
0

0
2015

2016

2017

2018

2019

Current net earnings per share

2015

2016

R&D expenses/Capital investments

R&D expenses （left axis）
Capital investments （right axis）(Yen)(Hundred Million Yen)

300

34

(Hundred Million Yen)

250

33
250

200

32
200

31

150

30

150

100

29

100

28
50

50

27
26

0
2015

2016

2017

2018

2019

0
2015

2016

2017

2018

2019

F-TECH CSR REPORT 2020│ 36 │

Issuer：
F-tech Inc.
19, Showanuma, Shobucho, Kuki, Saitama 346-0194
JAPANInquiries：
F-tech Inc. General Affairs Department
TEL. 0480-85-5211
FAX. 0480-87-1290
E-mail : webmaster@ftech.co.jp
Issued in March 2021,
Next Issue : Scheduled for release in August, 2021