ＣＳＲ Report
２０１６～２０１７

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Contents

CSR policy ...................................................................................................4
Corporate philosophy ....................................................................................5
Identity .......................................................................................................6
Organizational governance .............................................................................7
Corporate governance ...................................................................................8
Compliance ..................................................................................................9
Risk management....................................................................................... 10
Business Continuity Plan .............................................................................. 11
Human rights ............................................................................................. 13
Environmental Initiatives ............................................................................. 14
Occupational health and safety ..................................................................... 15
Fair operating practices ............................................................................... 16
Quality ...................................................................................................... 17
Eco Design (R & D, Composite Technology) .................................................... 18
Community involvement and development..................................................... 19
Social welfare ............................................................................................ 21
Support for NPO ......................................................................................... 22

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CSR policy▶ We observe laws and ordinances and we will act in accordance with social ethics in order
to continue to survive as a good member of society toward realizing a prosperous
society.
▶ We respect compliance with laws and regulations, respect social rules, cultures andcustoms in local society and overseas, and we try to have good sense of behavior.
▶ We are in compliance with the International Code of Conduct, to support the protectionof human rights, and respect, does not complicit in human rights abuses.
▶ We will comply with relevant laws such as the Labor Standards Law and strive to realize
healthy and appropriate working conditions and a safe and hygienic working
environment.
▶ We will actively address environmental issues such as "pollution prevention", "use ofsustainable resources", "mitigation of climate change / adaptation to climate change","environmental protection, biodiversity, recovery of natural habitat".
▶ We conduct fair and fair transactions with suppliers with social common sense andintegrity.
▶ We will strive for green procurement and CSR procurement.
▶ We will share information with each other and enhance our mutual values while
continuing to supply products with high quality and high convenience to the market.
▶ We will consider customers' safety first, we will comply with product safety laws andsafety standards and endeavor to realize higher level of safety.
▶ We will contribute to the development of society through social contribution activities
such as contributing to the local society, support to affected areas, as well as contributing
to the realization of a rich and safe society by providing products of superior quality.

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Corporate philosophy

Supporting rich lifestyle with compound technology
Fujikura Composite will continue to produce products that support rich living and security.
What do you potentially want?
What kind of technical proposals will respond to customer's mind?

Management
philosophy

Businessphilosophy

We value technology, creation and vibrant communication,
support peace of mind and contribute to the richness of society.

While enhancing mutual technological capabilities with ourcustomers, we will draw new possibilities with design
technology, composite technology and processing technology toprovide high-function products.

Quality policy To ensure consumer focus and product safety, we will strive tothe highest quality, provide excellent products, and contributeto society. We are always aiming to provide customers satisfied
products.

Organization
character

Sharing our philosophy and self-sustaining individuals areraising the level of work while striking each other's uniqueity
and heterogeneous ideas. We are nurturing technology Seeds
with organizational strength including overseas bases andmajor subsidiaries. I also work day by day to speed up thework of each project.

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Identity
Mind identity［Management philosophy］
Technology --------------- Developmental continuation of "Fujikura's technology"
Creation ------------------ Brush up "Steady management of Fujikura"
Lively communication ---- "Harmony of Fujikura employees" is shown concretely［Business philosophy］
Design technology・・・Combining rubber combinations as base technologies, combining
existing materials, fibers and other possibilities.
Composite technology・・・Demonstrate possibilities by composite technology of rubber
and metal, rubber and cloth.
Processing technology・・・Making full use of technology to manufacture faster, cheaper,and higher quality.
Behavior Identity
In order to make use of its own identity・・・"Clarification of mission for each business division", "Speeding up decision making","Clarification of responsibility and authority"
In order to demonstrate comprehensive power by sharing resources・・・"Speed up information transmission", "Human resources education and personnel
exchange", "Establish information collection method"
Visual identity
Corporate brand name

『 FUJIKURA COMPOSITES 』

We have brand name FUJIKURA COMPOSITES because our products are made of"composite technology" and our company is "organization that shares management
resources while taking advantage of the uniqueness of each business division".

Composite
technology

Division
Uniqueness

FUJIKURA COMPOSITES

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Organizational governanceIn order to maintain the company's survival and corporate value, we haveestablished basic policies concerning the development and operation of internal
control based on the scale of our company and the characteristics of our businesswith the aim of establishing a system to ensure the appropriateness of operations.
In the basic policy of internal control, in order to protect stakeholders such as
shareholders, investors, customers, consumers, employees, business partners, local
communities, etc., we will strive to improve the effectiveness and efficiency ofoperations, compliance with laws, preservation of assets, For the purpose of
securing financial reporting, all the executives and employees must practice about
the six constituent elements of the control environment, risk assessment andresponse, control activities, information and communication, monitoring and IT
response We are developing and operating systems including processes.

Executive

Two-way communication

Stakeholders

Employee7

Corporate governanceWe strive to strengthen our corporate governance system while raising theappropriateness of efficiency, transparency and fairness of operations andresponding to the trust of all stakeholders.
By managing the Board of Directors, the Board of Corporate Auditors, etc. withoutside directors and outside corporate auditors with sufficient insight about ourbusiness environment and management and in compliance with laws andregulations and the articles of incorporation, We believe that it is possible to ensure
quick decision-making, adequate oversight for business execution, and transparency
to investors, and adopt the current system.

elect

elect

Director

audit

AuditorelectreportIndependent
auditorreportreportManagement
watch

Internal Audit
department

Committee

8Management

Risk management

conference

Compliance promotion

Legal adviser

Environment

Internal

Control

Safety and healthauditing

watch

Standard

Compliance
In order to promote compliance with laws and social ethics and establish acompliance system, we have established a Compliance Promotion Committee, andas a pillar of it, we have established the "FUJIKURA COMPOSITES Code of Conduct",which all employees and employees will comply with We are building a compliancesystem as a foundation.
The Compliance Promotion Committee develops compliance systems of domestic
and overseas and related subsidiaries, understands problems, analyzes andevaluates compliance risks, and prepares measures to prevent recurrence.
In addition, the internal reporting system establishes a multi-track informationtransmission path, enabling direct information transmission to the president,
corporate auditor, management headquarters, compliance promotion chairperson,internal audit office head, etc.
The Internal Audit Office will audit the status of improvement and operation of thecompliance system, evaluate its effectiveness, request correction as necessary, andconfirm the effectiveness recovery by corrective action.
FUJIKURA COMPOSITES

Code of conduct

Compliance Promotion Committee

Internal Audit Department

・System maintenance・Understanding problems
・Risk analysis and evaluation
・Planning to prevent recurrence

Internal reporting system
Outside law officeCompliance promotion
committee chairperson

Employee

Human Resources Manager
President
Plant manager
AuditorAdministration manager

Internal Audit Dept. Manager

9Risk management
In collaboration with departments that are set up according to the type of risk, suchas business risk, disaster risk, quality / environmental risk, safety and health risk,
fraud risk, and departments that the risk committee is involved in, risks related tothe entire group Under the control of the Risk Management Committee, we willcontinue to identify, analyze, evaluate, review and verify response measures,▶ Oversee and coordinate matters related to risk management▶ Analyze risks, examine risk hedging plans, report to management meetings, etc.
▶ Confirm progress of risk hedging▶ Support for risk hedging implementation department▶ Collect and provide information on risk and risk management
We conduct cross-sectional and integrated risk management.

Risk management• Business risk (material procurement, interest rate,exchange rate, data loss etc)
• Disaster risk (natural disaster, equipment damage, fire,
infectious diseases, etc.)• Quality risk (liability for liability, product liability, etc.)• Environmental risk (environmental pollution, noise, etc.)• Safety and health risk (occupational accidents, commuting
injuries etc)
• Fraud risk (violation of laws, information leaks, scandals,
etc.)

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Business Continuity Plan
In the event of a natural disaster or sudden accident, we are continuing ourbusiness at a level above the allowable limit and restoring the operation within an
acceptable period as one of the important themes of CSR.
In formulating the Business Continuity Plan (BCP), we have established a BusinessContinuation Basic Policy and established a Business Continuity Management
System (BCMS) for emergencies.
In addition, we review the BCP every year to clarify priority projects for business
restoration and target recovery times.
Business continuity basic policy１）We will ensure employee and family safety as a top priority.
２）We aim for early recovery of company function, make necessaryconfirmation for business continuity, secure human resources for labor andprepare production.
３）We will prioritize the production of our functional parts, which have a great
economic impact, for social infrastructure and social reintegration, andcontribute to the early recovery of society as a whole.
４）We developed a business continuity plan, plan to train in advance so that it
can be transferred to immediate execution in the event of an emergency.
５）We will continuously update business continuity plans to respond to changes
in social situation, technological progress, and reform of legal system.

Business Continuity Plan (BCP)
In the event that the production line of an important project covering thebusiness continuity plan specified at the beginning of the fiscal year is damaged,
we will allocate resources (production facilities, raw materials, personnel, etc.)
necessary for the production of other business as necessary Transfer, production
and supply of the relevant business will be top priority.

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Schematic flow chart when BCP is activatedDisaster occurrence

Initial response
Disasterday

Evacuation
Establish emergency response headquarters
Secondary disaster prevention
Safety confirmation and grasp of the damage situation

Contact with customers and cooperating companies
3 daysBCP compliant
BCP activation
Community Contribution

Business Restart Group Inauguration

Activities

BCP Activate
Determination of alternate location

90 days

Customer Measures

Financial measures

Transaction adjustment

Securing working capital

Trading restoration

Procure funds
Internal measureAffected factory restoration activities
Alternative production
6 months

Start of product supply

Cancel BCP and return to normal regime

Disaster reconstruction

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Human rights
Basic guidelines
We are well able to comply with the laws and regulations, respect social rules,
the culture and customs in the community and overseas, bear in mind thesensible action.

· Do not slander others or use words that lead to social discrimination.
· We comply with relevant laws such as the Labor Standards Law, respect humanrights and freedom of association, keep healthy and appropriate wages, working
hours, workplace environment and do not force unjustifiable discrimination andlabor. Also, do not use children for labor.
· Prohibition of sexual harassment · power harassment etc· Confidentiality of personal information· Appropriate personnel management (reasonable recruitment, fair appraisal,change and promotion, proper development)
Respect for human rights
Respect for human rights such as civic and political rights, economic andsocial and cultural rights, basic principles and rights in labor in all countries
and regions in which we operate, infringing oneself while doing business At
the same time it does not benefit from infringement of human rights byother people (company) such as child labor, labor by restraint notdependent on free will, illegal low wage.
In order to avoid human rights violations anticipated in the course of doing
business, we strive for human rights education for employees and set up amechanism to detect infringement and correct it.
Based on the International Code of Conduct (Universal Declaration of
Human Rights, United Nations Global Compact, etc.), action guidelines andthe like are established.

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Environmental Initiatives
Various business activities are established based on the "grace" of the global
environment. Fujikura Composite is always aware of the importance of that matterby all employees. Rather than calling for excessive scale expansion, we have a strong
sense of duty to deeply delve into the unique business activities of rubber processing
and composite material, while also suppressing the environmental burden andleaving a beautiful environment in the next generation.
Environmental conservation activities
Headquarters, main sales offices and factories acquire ISO14001 environmental
management system certification.
We extract environmental impacts accompanying production activities andimplement continuous improvement activities.
The main themes are energy saving activities, waste reduction activities, global
warming countermeasures (CO2 emission reduction), VOC emissions reduction,
chemical substance management, and so on.
As information provision methods, we have implemented data disclosure inenvironmental reports and environmental communication for local residents.
Environmental objectives
１）Energy saving : Based on the 2010 fiscal year, we will make an improvement
by 5% in the whole company until FY 2015.
２）Measures against global warming : Reduce the amount of CO2 emissions in
the five-year average for 2008 to 2012 by 10% compared with 1990.
３）Waste reduction : Landfill waste reduction: We will reduce the total amountby 10% by FY 2015 based on 2010 as a whole.
４）Reduction of VOC (Volatile Organic Compound) Emission Gas : Reduce total
emissions by 50% by the year 2015 as the fiscal 2000 standard.
５）Recycling : In cooperation with user industry etc., we will conduct surveys,
analysis and research on collection and recycling, and work on improving therecycling of waste rubber products.

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Occupational health and safety
Based on the policy of the Central Safety and Health Committee, promotion ofdisaster prevention activities aiming at zero accidents for each workplace, training to
respond to emergency situations such as recently frequent earthquakes, efforts toimprove the environment as a social request We will raise safety and healthactivities.
Health and safety activities
Safety and hygiene activities are prioritized in all activities and are fundamental to corporate
activities. Ignoring safety and hygiene activities can’t supply products that satisfy customer's
requirements. To that end, we endeavor to protect workers from "danger" by enhancing safety
and sanitation activities, identifying safety education and risk reductions, and taking
precautionary measures. We will also actively engage in sanitary activities such as mental
health, passive smoking, and metabolic syndrome problems.

Activities by Occupational Safety and Health Management System
In fiscal 2010, we introduced OHSAS 18001, a safety and health management systemthroughout the company, to advance risk assessment and to implement measures before
occurrence, rather than improving after the occurrence of disasters and diseases. There is no
end to safety and health activities, we constantly make continuous improvements, and we aremaking workplaces that are safer and more comfortable. We will also actively engage in mental
health activities.

Environment and Occupational Safety and Health Policy
1) Establish environmental and occupational safety and health management systems in all
business activities, make continuous improvements, reduce environmental impact, prevent
pollution and improve occupational safety and health Maintain efforts.
2) Identify environmental aspects and hazards in all business activities. For that purpose, we willrecognize its existence and build a process to clarify its characteristics and make efforts to rectify
and prevent it.
3) Document environmental impact reduction and safety and health goals and improvement
plans, confirm the implementation status, and review each fiscal year.
4) We will comply with the environment, occupational safety and health related laws,
regulations, agreements and other requirements agreed to by the company.
5) Publicize the environment and occupational health and safety policy to everyone working forthe person or organization working for the organization, to raise awareness of environmental
conservation and occupational safety and health.
6) We will disclose the environment and occupational health and safety policy to the public ingeneral.

15Fair operating practices
We do fair and fair with social common sense and honesty about transactions with
suppliers.

Maintain fair competitive relationship
1) Do any fair and free competition in any case.
2) In dealing with purchasing parties / subcontractors, we must investigate theconditions fairly and fairly with social common sense and integrity, and make thebest choices for the company.
3) Confidentiality of Information: Information on other companies (persons) who
knew from business cannot be leaked to third parties, except for businesspurposes.
4) Transparent relationship with politics / administration: Do not act that may leadto misunderstandings such as bribery, profit sharing and illegal politicalcontributions, as well as adhesion with politics and administration.
5) Relationship with antisocial forces severance: Do not have any relationship with
antisocial forces. If you receive unreasonable demands from antisocial forces,
you must take resolute attitude and give money or other means to resolve. Also,
do not engage in any transaction with antisocial forces and business partners
related to antisocial forces.
6) Compliance with import and export related laws: When importing and exportinga product, it is necessary to take appropriate procedures according to laws andregulations. Also, export of export prohibited goods and import of forbiddance
goods import shall not be done.

16Quality
Fujikura Composites has established the "quality policy" as part of its corporate
philosophy and strives to be a trusted company by all employees acting based on thispolicy and providing satisfying products by customers. Quality improvement aims
not only in product quality but also in improving the quality of every businessprocess.
Efforts to improve work quality
We have acquired certification of the international standard "ISO 9001" of thequality management system in the business divisions of each product from 1998
onwards, and our products and services are stable by quality stability, speed up oftechnology development, We are promoting activities with the aim of improving thequality of every work so that we can obtain further reliability. As a result, we havebeen making great progress in improving customer satisfaction in global
transactions such as increasing new customers and increasing trust from overseas
customers.
Quality policy
In order to "focus on consumers" and "ensure product safety," we will strive to"quality first", contribute to society by providing superior products.
We aim to always provide products that our customers satisfy.

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Eco Design (R & D, Composite Technology)
Our technology has started with rubber garment technology and now it has
accumulated technology for more than 100 years in 7 business areas. Our
technology is used in various life scenes from industrial materials to golf carbon
shafts. As you can see from the corporate brand "Fujikura Composite", it is atestimonial of combining the respective technologies, bringing out synergy effects,
constantly seeking new business areas and establishing new technologies.
We will continue to refine our composite technology with "Composite" as the
keyword and create products that are trusted by customers.
Our engineers gathered at the engineering center to further revitalize the sharingof technical information and the integration of technologies and promoting newcommercialization by accelerating development.
When developing products, we aim to design from the design of materials, from thedesign of the materials to the reduction of environmental burden during the processof use, taking into consideration the environmental impact.
In particular, we are aiming to commercialize carbon fiber reinforced plastics(CFRP) products to fields other than sports applications by integrating theaccumulated automobile related field technology and carbon shaft technology inorder to promote environmentally friendly product development I will. CFRP is
expected to have high energy efficiency due to high strength, high rigidity, and lightweight.

Engineering center

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CFRP Example of productCommunity involvement and development
Regional support
・Each year we accept requests for factory tours from elementary schools, junior highschools and high schools in neighboring areas.

・Blood donation by the Saitama Prefecture Red Cross Blood Center is carried out onan annual basis every year.

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Commercialization of industrial parks as a whole
Conduct collection of weeds, empty cans, PET bottles, dead leaves, and othergarbage around fence and action around the site

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Social welfare
Support to Fujikura Gakuen
We have been donating to social welfare corporation "Fujikura Gakuen" which is
support facility for people with mental disabilities for many years. Fujikura Gakuen
was founded by donating personal property by Shunkichi Nakauchi, the youngest
brother of Founding Father and Zempachi Fujikura. We will continue to provide
support activities in the future.

Support for Fujikura Foundation
We are donating to the Fujikura Foundation, a public benefit foundation corporationthat is engaged in research aimed at encouraging the development of science andtechnology.
The Fujikura Foundation is openly invited from technical colleges, universities,
graduate schools, etc. After selection, we select grant recipients and receive
research grants.

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Support for NPO
We collect bottled cap and offer it to NPO corporation "Eco cap Promotion
Association".
By recycling without incineration, we can contribute to environmental preservation(CO2 reduction) and resource saving (formation of recycling society).
In addition, the provided eco cap is converted as a recycled plastic raw material,and it is devoted to various social contribution activities such as medical support,
vaccine support, and support for people with disabilities, environmental education
for children.

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Fujikura Rubber Ltd.
TOC Ariake East Tower 10FL, 3-5-7 Ariake, Koto-ku, Tokyo, Japan 135-0063
TEL: +81(3)3527-8111
Issued CSR Department
Published July 3, 2017

FAX: +81(3)3527-8330