Furukawa Electric Group Sustainability Report 2013

International society is facing a number of issues in the energy sector. With the balance
between natural resource supply and demand growing tighter, demand for energy continues
to grow. Environmental risks due to fuel consumption are increasing. Furukawa Electric ismaking a proactive effort to address international environmental issues by pursuing theefficient use of energy resources.
In April 2013, we announced Furukawa G Plan 2015, the medium-term management plan for
the Furukawa Electric Group. This plan calls for the promotion of businesses that useenergy efficiently and in an environmentally friendly manner in the three essential
consumer categories of energy, telecommunications and automobiles. We have set “createa smart electric power infrastructure, “build high-capacity telecommunication
infrastructure” and “make cars greener” as shared goals for the Group going forward, and
our R&D, production and sales functions will work together to achieve these goals.
Furukawa Electric has developed a host of products processed from diverse materials,
including copper, aluminum and plastic. By deepening, broadening and combining materialtechnologies at Furukawa Electric, we aim to pursue the groupwide development ofinnovative new products and technologies on global scale. We have identified three sectorsthat are closely related to everyday life; by making use of products in these areas, we aim
to promote the efficient use of energy resources and contribute to ongoing environmental
improvements.

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Hisaharu Yanagawa
General Manager ofResearch andDevelopment DivisionCorporate Senior Vice
President

Furukawa Electric Group Sustainability Report 2013

The volume of global data traffic is projected to increase at an annual rate of 40%, highlighting the need for high-capacity
telecommunication networks that take advantage of advances in optical communication technology. The Furukawa
Electric Group contributes to bringing high-capacity telecommunication infrastructure into practical use by using
advanced functional optical components developed through its leading-edge photonics technology.
In addition to some of the world's most advanced optical fiber cables, Furukawa Electric supplies such opticalcomponents as semiconductor lasers, optical waveguides and optical switches, as well as optical fiber amplifiers, routersand other optical transmission equipment. In recent years, attention has focused on the development of lasers andrelated devices that are used in digital coherent communication systems to realize higher volumes of data transmission
than conventional systems. As devices become compact in size and advanced in functionality, a huge volume of
information can be communicated with lower power consumption.
We will utilize the expertise we have built up in optical communications to increase data center capacity while reducing
their power consumption and pursuing space savings. At the same time, we are undertaking R&D initiatives toward more
efficient network operation and ultrahigh-capacity communications.

•Digital coherent communication•

Integrated signal light source•

High-density optical wiring•

Spatial multiplexing•

Optical engine•

Ultrahigh-speed wireless communication•

Optical communication with high spectral
efficiency

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Furukawa Electric Group Sustainability Report 2013

Pick upHigh Speed and Quality
Digital Coherent Communication
Given the demand to communicate increasing volumes of data at high speed, digital coherent communication is garnering
attention for its ability to handle higher capacity by utilizing optical phase and polarization.
The Furukawa Electric Group has developed
some of the elemental technologies neededfor digital coherent communication, such as
sophisticated optical waveguide technology
for controlling phases and polarization,
contributing to its practical realization.

Pick upUsing Optical Wiring to Achieve Ultrahigh-Speed Transmission and Reduce Power
Consumption
Optical Interconnection
In recent years, dramatic increases in the volume of information handled by networks and data centers has highlighted
the limitations inherent in using electrical wiring to connect massive computers. Optical interconnection, using opticalconnectors and wiring, is heralded as an alternative approach.
This new technology overcomes the distance and speed limitations of electrical wiring transmission capacity. Thetechnology is also environmentally friendly, as it consumes less electric power.
The Furukawa Electric Group is developing elemental technologies for optical interconnection, such as optical modules,
optical connectors and optical fibers.

Ultrahigh-speed optical interconnection

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Optical Fiber That Enables Spatial Multiplexed Optical Transmission
Multicore Fiber:
Current optical fibers have a single “core” where optical signals propagate. Multicore fiber, as its name suggests, hasmore than one core.
As the transmission capacity of existing optical fiber transmission lines is predicted to become insufficient in the nearfuture, expectations for the introduction of innovative technologies are growing. For example,
spatial multiplexed optical transmission technology can be used to substantially increase thevolume of data handled by transmission networks made of existing optical fiber.
In addition to multicore fiber, the Furukawa Electyric Group is promoting R&D on incidental
technology, such as multicore amplifiers and connectors, aiming for commercial production in 2020or later.
Multicore fiber:

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Multicore fiberFurukawa Electric Group Sustainability Report 2013

The Furukawa Electric Group boasts a long history in the development of power transmission technologies that provide
the basic infrastructure for today's society. We are leveraging the technologies we have cultivated in the power
infrastructure business to contribute to the realization of a society that employs smart grids to use energy efficiently.
We already contribute the efficient supply of electricity by providing low-, medium- and ultrahigh-voltage cables andcomponents. In addition, we are developing high-temperature superconducting power cables that are expected totransmit electricity efficiently and greatly reduce power loss during transmission. Furthermore, we are targeting thenatural supply of stable energies by participating in an offshore floating wind farm project and developing an energy
storage system to improve the efficiency of energy use.

•Energy storage system•

EV charger connectors and devices•

Automatic control systems for power•

V2H/V2G system

distribution•

High-temperature superconducting cables•

Power cables•

High-temperature superconducting devices•

Terminations

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Furukawa Electric Group Sustainability Report 2013

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Reducing Peak Power Consumption and Making Efficient Use of Nighttime Power
Package-Type Energy Storage System
The importance of storage batteries has attracted more widespread recognition in the aftermath of the Great East
Japan Earthquake.
Furukawa Electric's package-type energy storage system serves as an emergency power source to sustain operationsof a limited amount of essential electrical equipment in the event of a power outage. This system uses electricity
efficiently by reducing consumption during times of peak power demand and making use of nighttime power generation.
For customers, reduced peak electricity consumption translates to lower base rates and allows for the installation ofequipment to ensure safe and stable operation, enabling a partial recovery of capital investment.

Peak power reduction

Package-type energy storage system

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Participating in the Experimental Offshore Floating Wind Farm Project
Riser Cables, Terminations
Furukawa Electric is in charge of the power supply for the experimental project. We are building and testing a power
supply system capable of securely delivering control signals and power generated at the offshore floating wind farm tothe shore through submarine cables. Since the force of waves and tides cause floating wind farms to constantly pitch,
the submarine cables are also required to track dynamic movement under severe conditions. We are helping to realize
the world's largest offshore floating wind farm by developing an ultrahigh-voltage riser cable system that mobilizes thedynamic cable technology cultivated at Furukawa Electric.
Schematic diagram of the power supply system at offshore floating wind farms

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Furukawa Electric Group Sustainability Report 2013

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The World's Most Advanced 275kV-3kA High-Temperature Superconducting Cables
High-Temperature Superconducting Cables
Technology is needed to ensure the stable supply of power, which underpins economic society, as is highly efficienttransmission technology to send this power without waste from its source of generation.
In the past, 66kV was mainstream in the development of superconductive transmission cable technologies, but in recent
years demand for transmission cables with even higher voltage has emerged, particularly overseas. As this technology
takes hold, it is likely to be introduced into new infrastructure in Japan, as well as in other parts of Asia.

30m 275kV superconducting cable verification test (Shenyang)

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Furukawa Electric Group Sustainability Report 2013

To resolve issues in the field of transportation equipment, including energy problems and rising CO2 emissions, theFurukawa Electric Group is utilizing its proprietary materials capabilities to make cars greener, such as by making
automotive parts more lightweight to improve energy efficiency.
For example, we use our metal structure control technology and property modification and processing technologies forplastics to make automotive parts (aluminum body materials that are highly rigid and conduct heat well, highly conductive
and rigid aluminum wire harnesses, and high-strength foamed materials used in electronic components) more lightweight,
improving fuel efficiency and leading to CO2 reductions. We also employ our technologies for designing plastics andmaking wiring thinner to make highly compact and reliable windings for alternators, which contributes to higher energy
efficiency on electric and hybrid vehicles (EVs/HVs). Going forward, in addition to making parts more compact and lightweight, we aim to become involved in overall energy management efficiency for automobiles.

•High-strength foam components•

Thick insulation film rectangular wire•

High-strength aluminum alloys•

Energy management system•

Thin insulation film enameled wire•

Thermal energy control

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Furukawa Electric Group Sustainability Report 2013

Pick upAchieving Lighter Weight by Changing the Conductor Material from Copper to Aluminum
Aluminum Wire, Wire Harnesses
Wire harnesses are the tied bunches of automobile electric cables, or wires, that provide electrical connections to avehicle's electronic components.
The weight of wire harnesses has grown in recent years, as vehicles include more electronics and automakers pursue
higher levels of functionality to make automobiles safer and more comfortable. Wiring accounts for around 60% of theweight of wire harnesses. We are taking a variety of approaches to reduce their weight, such as by making insulative
coatings thinner and employing smaller-diameter wires.
As another method for making wiring lighter weight, we have developed alloy-based aluminum wire for conducting
electricity in place of copper. Using this aluminum wire in some locations makes the harness more lightweight.
By making wires thinner and using improved anticorrosion technology, we plan to increase the scope of application foraluminum wires and help to make automobiles even more lightweight.

Wire harness

Aluminum wire

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Making EV/HV Drive Motors More Highly Efficient and Compact
High-Withstand Voltage Rectangular Wires
Making EV/HV drive motors more compact requires highly insulative and reliable windings.
High-withstand voltage rectangular wires comprise a rectangular conductor, an enamel layer and an extruded resin layer.
In addition to being highly insulative, the rectangular shape of these wires gives them a high space factor, and theirenamel layer enables them to withstand heat and contributes to reliability. As a result, these wires help to make EV/HVdrive motors more compact.

Rectangular wire for EV/HV drive motors

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Monitoring the Degradation in Lead Battery Discharge Performance
On-Board Lead Battery Status Detection Sensors
A battery's internal resistance (note 1) is an extremely important factor for determining its discharging performance anddegree of depletion. However, using conventional methods does not allow the internal resistance of lead batteries could
to be measured when the engine is turned off or on EVs/HVs not equipped with starter motors.
Furukawa Electric has developed the technologies to install a discharging circuit in the sensor and calculate the internal
resistance based on current and voltage response. For the first time in the world, using this sensor allows continuous
monitoring of a lead battery's status, even when the engine is turned off and on EVs/HVs without starter motors. Thisaddition helps to improve automotive fuel performance and reduce CO2.
(note 1) Internal resistance refers to the electrical resistance within a battery. The higher the internal resistance, the lower the voltage will
be when discharging takes place. In general, internal resistance goes up as a battery deteriorates.

Lead battery status detection sensor installed in a vehicle

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