Relationships with Customers and Suppliers
Introduction to FDK customers in FY2018

The FDK Approach

Importance of product quality and management quality●●Expansion of safety and security needs insocial infrastructure●●Legislation to promote energy-saving policy●●

Providing services and value to customers
as a Smart Energy Partner supplying batteries and electronic devices that contribute tosociety in various forms●●

Highlights of Relationships with Customers and Suppliers

FDK participated in several exhibitions in FY2018, including the “BATTERY JAPAN”, the worldʼs largest exhibition for the development andmanufacture of secondary batteries and storage batteries, and the“TECHNO-FRONTIER 2018” advanced electronic devices and components exhibition. FDK also exhibited at the “Wearable Device andTechnology Expo” showing the latest in wearable electronics applications, and three more overseas exhibitions. By introducing battery
and electronic device technologies and products at these venues, theFDK Group was able to showcase technological strengths, as well asproducts and solutions that help address societal issues.

Number of presentations
at exhibitions

Number of products
developed to contribute toimproved energy efficiency

Number of products
developed to contribute toimproved resource
efficiency

Number ofISO9001-certified
production sites

8439

Number ofIATF16949-certified
production sites

Number of Quality
Assurance Division
meetings among businessdiviisions

Number of work-site
improvement action briefing
sessions with topmanagement participation

Number of quality
assurance reviews
implemented

BATTERY JAPAN31621500

Products

Supplying Batteries and Electronic Devices Which Contribute to Society Across Multiple Platforms
Basic Concept
The FDK Group strives to build product development, supply andquality assurance systems in line with market need and solutions tosocietal issues, promoting green procurement based on concepts forcontinually developing and supplying high-quality, safe, environmentally-friendly batteries and electronic devices able to satisfy customers.

FDK Group Initiatives
FDK Group continues to provide batteries and electronic devices thatuse environmentally-friendly materials by complying with environmental laws and regulations to further heighten value as a company cultivating the future. As part of its business, FDK Group works to develop
products able to provide new added value derived from the accumulation over time of technologies that differentiate FDK.

19FDK GROUP CSR REPORT 2019

“Offering Safety” and “Fulfilling Our Responsibility to theEnvironment” with Unique Differentiated Technology

FDK is a globally unique corporate group with its own combination oftechnologies for batteries and electronic devices.
For example, differentiated technology that utilizes this uniqueness has succeeded in making FDK power storage systems a technology that integrates the advantages of both batteries and electronicdevices.
FDK strives in product development with care to always provide
environmentally-friendly products in demand by customers as well as
the market.

Product Development for the Next Generation
Samples of small all-solid-state SMD battery with highenergy density become available
FDK began offering samples of its newly developed all-solid-state batteries, and announced the development of high-capacity versions inMay 2019. All-solid-state batteries do not leak liquids, and are safer
than existing lithium-ion batteries that primarily use flammable organic
materials. Combining FDKʼs own battery and electronics technologies,
these are the worldʼs highest class of products (Source: FDK survey,May 2019).

■ FY2018 targets and achievements●●FDK Group continues to promote valuable products that conform tomarket needs in industrial markets with high potential

FDK Group will continue to provide services and value that bring satisfaction to customers while earning their trust as we respond flexibly and rapidly
to a variety of environmental changes. FDK Group, as a Smart Energy Partner, assemble advanced technologies, would like our customers to best
utilize electric energy in a safe and efficient manner, and contribute to materialization and development of sustainable society.

Labor Environment Fair Trade Consumer Community
PracticeIssues

Photo: All-solid-state battery sample●●FDK Group releases synergy products that make use of proprietary

Initiatives supporting Relationships with Customers and Suppliers

HumanRights▼

Social Requirements

Governancetechnologies from the Batteries and Electronic Devices Businesses into
the industrial market to respond to market needs●●FDK Group develops new magnetic materials having both high performance and high quality and advances its products.
●●FDK Group develops power supply products with greater added value byAction●●FDK Group realizes technological development proposals adapted toneeds by enhancing market research and rapidly discovering customer
and market trends.
●●FDK Group reinforces relationships built on trust through sales activities
that surpass customer and market expectations.
●●FDK Group continually makes improvements based on its BusinessContinuity Plan (BCP) to recover as quickly as possible in the event various risks manifest.

taking advantage of large-scale power supply technologies
Products●●Ni-MH batteries

We have worked to develop products that address customer desires
and environmental issues. These efforts include the development andsupply of reduced-cost product models for the household electronics market. We have also worked on developing and mass-producing
products for the infrastructure market, including such applications as
in-vehicle, disaster prevention and security uses, as well as back-up
power supply.
●●Alkaline batteries
We moved forward with development of materials for development ofsafer, more secure products and reduced-cost models featuring improvements in leakage resistance performance and long-term storage
performance. We have also developed eco-conscious packaging, andbegun shipping products using it.
●●Lithium batteries
We moved forward on schedule with development of products for smart
meters both domestically and internationally. We also advanced the development of secondary batteries in the card and wearable markets,
including our exhibit at BATTERY JAPAN.

●●Electronic Products

We made progress in the development of ferrite, coil devices and multilayer power inductors that contribute to the reduction of customer power consumption.
We also developed various types of module products that contributeto miniaturization of our customersʼ products, and began shipments ofsensor devices used at corporate shareholdersʼ meetings.
●●Research and development

We have developed and shipped samples of highly safe small all-solidstate SMD battery as we made progress with efforts toward mass production of next-generation batteries that help resolve challenges facedby customers and by society. We have also begun working toward thedevelopment of metal-hydride air secondary battery with promising potential future uses in social infrastructure.
ActionWe have revised our organizational structure to strengthen marketing,rapidly identify customer and market trends, and achieve technologicaldevelopment proposals tailored to needs. This year, we continued with theBCM operations built during the previous fiscal year.
As a result of these initiatives, we developed four products in FY2018 that
contribute to improved energy efficiency, and three products that contribute to improved resource efficiency.

FDK GROUP CSR REPORT 201920

Governance▼

1. Quality and Safety Policies

The FDK Group spares no effort in pursuing and achieving quality andsafety of products and services (referred to as “quality” below) in linewith the following sevenfold policy orientation:
1）Pursuing quality from the customerʼs perspective
As a partner to our customers, we continually strive to create quality thatenables them to use our products and services in safety and security.
2) Creating quality in anticipation of change
In anticipation of changes in the environments in which our customers
operate, we pursue a broad spectrum of quality that encompasses
beauty, ease of use and ease of understanding.
3）Fulfilling social responsibilities through quality assurance
In addition to the standards specified under the various quality-related
laws and regulations domestically and overseas, we have establishedstandards of our own, adherence to which enables us to provide our customers with products and services they can use in safety and security.
4）Continuous improvement under the three-reality principle(i.e., actual place, actual things, actual situation)
We proactively collect, understand and analyze information such as
product and service quality data and customer opinion in order to continually improve product and service quality.
5）Quality improvement in collaboration with business partners
We undertake efforts to cumulatively build trust and improve quality by
sharing our conception of quality with our business partners.

Continually strive to ensure
product and service quality and safety
in all aspects of our business activities

Work to build an abundant future together
with customers and society

Increasing corporate value▼

2. Quality Assurance System

The FDK Group has built a quality assurance system to ensure appropriate application of quality and safety policies and continually undertake quality assurance activities.
▼3. Acquisition Status of ISO 9001/IATF 16949

FDK strives for ongoing process improvements based on the Quality
Management System (QMS). As of May 2019, all 9 sites, including■Quality assurance system

Customers

4. Quality Assurance Initiatives

FDK brand(1) Quality assurance system
In order to provide quality products and services that satisfy the function and performance requirements and other needs of customers, FDK
fosters cooperation between management and various departments.
This necessitates the participation of every employee in activities acrossevery stage of its corporate activities. Thus, it needs the systems andframeworks to unify the organization for ongoing activities.
FDK has built and operates QMS as noted in item 3, and willachieve and assure quality able to satisfy customers at each step fromproduct planning to manufacture, shipment and aftercare services. In
operating these QMS processes, we run through a PDCA (Plan, Do,Check, Action) management cycle with the aim of higher quality andongoing improvements.
(2) Quality assurance promotion system
FDK engages in collaborative activities linked to those of each businesssite, including those overseas across a diverse product line-up. Quality
assurance divisions regularly have meetings with all business divisions
that drive these activities and actively work to share information, formulate quality proposals, escalate responses in the event of problems
and quality issues related to compliance, conduct education to nurture
human resources, and horizontally share other information such as examples of defects as well as expertise. Group-wide Quality Management
Committees have been set up, hosted by top management, as part of amanagement-led approach that transcends product categories.

Products and services

International standards(ISO/IATF, etc.)

Double-checks
from third-party
perspectives

Quality Management SystemProducts/services
Activities to improve
quality acrossdepartments

Ensuring qualitythat leverages
expertise

Directives

Management

Management
Quality
PolicyReporting

Activities to improve/reform quality with the participation of everyone[Jishuken (briefing session about on-site improvement
activities in which top management participates)
Step Up FDK (improvement activities in small groups), and QC education)]
Quality regulations, standards, and specifications

cation process from planning to mass production in accordance withquality standards and regulations while reinforcing greater objectivity
in these assessments to supply quality that provides trust for customers, which is the quality policy of the FDK Group. About 500 items areverified by design review, a representative step in quality assurance
activities in one year.

2. Green Procurement Initiatives▼

FDK Group Corporate Conduct Guidelines
FUJITSU Way

Labor Environment Fair Trade Consumer Community
PracticeIssues■Quality assurance framework▼The FDK Group Quality Policy
Quality Policy: “We will provide customers with quality they can rely on.”Based on the FDK Group Corporate Conduct Guidelines and the FUJITSU Way, which represents the common corporate philosophy andorientation of the Fujitsu Group, we continually strive to ensure productand service quality and safety in all aspects of our business activities.
This is how we work to build an abundant future together with customers and society as we increase corporate value.

locations overseas, have acquired the ISO9001 certification and 3 ofthose sites have acquired the IATF16949 certification.

Improvement Processes of Actions to Strengthen Quality
Assurance
1. Quality assurance activities for products and services
through objective points-of-view▼6）Disclosing and responding to quality information
We promptly and responsively disclose appropriate, necessary quality
information so that our customers can use our products and services
in safety and security.
7）Developing personnel who are mindful of quality
Working to elevate quality-mindedness and improve quality technology,
we develop personnel who are always mindful of quality in their actions.

Development with Consideration for Quality and Safety

HumanRights

FDK conducts reviews from broad standpoints that involve not only asingle department but all other departments through the entire verifi-

FDK Group contributes to the development of a more sustainable society by conducting business activities that consider the environmental
burden and providing environmentally-friendly products.
FDK Group is providing environmentally-friendly products to customers through the use of materials that consider the environment
based on the “FDK Group Green Procurement Standards”.

■Chart of each quality assurance verification process
Quality Management System

President

Quality Policy: “We will provide customers with quality they can rely on.”Improvement activities: Check activities on-site by top management
Convene Group-wide Quality Management Committees

Sales group

Business group

Manufacturing departments

Engineering departments

Quality control departments

Quality assurance division

Reliability assurance
departments
Committees:
Contained chemical substances

Overseas Group companies

Quality control departments

21

FDK GROUP CSR REPORT 2019

Planning

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

Assessment/testing

Customer satisfaction

Risk escalation

Judgment
for shipping

Storing, sharing and use of knowledge
Quality statusmonitoring and improvement

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

Committees: Product safety

FDK GROUP CSR REPORT 201922