I Corporate Profile and Summary of BusinessCorporate Profile
Summary of BusinessCorporate Profile
Since its establishment more than a century
ago, Furukawa Electric has kept pace with theHead Office:6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322

progress in technology which has shaped theFounded:

1884, changed firm name in 1920

foundations of Japanese industry. OriginallyPaid-in Capital

59.2 billion yen

Number of Employees:

7,889

Works:

Chiba Works, Nikko Works, Hiratsuka Works, Oyama Works, MieWorks, Osaka Works, Fukui Works, Shiga Works, Kambara Works,Shinagawa Works, Yokohama R&D Laboratories

Sales Offices:

Kansai Branch Office, Chubu Branch Office, Kyusyu Branch Office,
Chugoku Branch Office, Tohoku Branch Office, Hokkaido Branch Office

fostered by electric cables and non-ferrous metals, the Company's advanced technologies havesteadily expanded in response to the needs ofthe times and still continue to challenge new
possibilities with innovation and creativity.

Overseas Representative Offices: London Representative Office, Beijing Representative Office, Shanghai
Representative Office, North America Representative Office
Research Laboratories:

Yokohama R&D Laboratories, Metal Research Center, Ecology &Energy Laboratory, FITEL Network Laboratory, FITEL Photonics
Laboratory, Automotive Technology Center
As of March 31, 2003

Consolidated Business
Performance
In spite of overall decline in demands, domestic

Net sales

Net income

Total assets

30

Number of employees

1500

100of the last half. However, under the influence

2000(Thousand)strip saw a sign of recovery since the beginning

200(Billion yen)aluminum can stock for beverage and copper

900(Billion yen)(Billion yen)demands in such fields as optical fiber cable,

20

800

of the worldwide IT depression and because of01000-100500

a significant decrease in the sales of fiber optic
products centering North America, the consoli-

10700

dated sales ended up with 710,616 million yen(minus 7.9 % over the previous fiscal year).

600
1999 2000 2001 2002
Fiscal year

Summary of Business-200001999 2000 2001 2002
Fiscal year

1999 2000 2001 2002
Fiscal year

1999 2000 2001 2002
Fiscal year

Major market products are summarized here together with their environmental aspects, whereby theproducts, ranging from raw materials to various systems, are categorized into four business areas that
supported by the advanced technology of Furukawa Electric.
Major market products

Production Bases
Environmental aspects
Sales
Hazardous
composiNikko Nikko (AluEnergy con- Global Resourcetion ratio Chiba (Copper) minum) Hiratsuka Oyama Mie Osaka Fukui Shiga Kambara Shinagawa Yokohama servation warming saving Recycling substanceelimination

Telecommunications

Optical fibers and cables, Opticalcomponents, Optical fiber cable
accessories and Installations, Network equipments

22%

—

—

—

——

—

—

—

—

—

—

—

—

—

Plastic, Cables and Wires

Bare wires, Aluminum wires,
Insulated wires, Magnet wires,
Power cables, Power transmission
cable accessories and installations, Plastic products such as
power cable conduit material andfoam sheet, and thermoelectric
products

23%—

Nonferrous Products

Copper pipes and rods, Electrolytic copper foils, Shape memory
alloys, Aluminum sheets, Extruded
aluminum products, Cast andforged products

36%

—

—

—

—

—

—

—

—

Electronics-related
Products and Others

Automotive components and electric wirings, Heat pipes, Aluminum
circuit boads for memory discs,
Electronic component materials

219%

—

—

—

—

—

—

II Pro-environmental Management Policy
Basic PolicyAction Guidelines

Basic Policy
Furukawa Electric recognizes that preservation of the global environmentis a critical issue for society, and shall incorporate consideration ofenvironmental preservation issues into every phase of corporate activity,
to contribute forwards the sustainable, happy and prosperous society.

Action Guidelines
l All activities shall be based on an awareness of its effect on theglobal environment, and environmental preservation activity shall bepursued by all employees.
l We shall observe environmental laws and regulations and requirements from our customers, and set up voluntary standards to upgrade control levels.
l We shall define environmental targets and objectives, and carryout activities according to the plan, thereby continuously improving
environmental preservation activity.
l Environmental concern shall be taken into consideration in every
phase of our work from the R&D and design stages to supply
environment-friendly products.
l In every phase of procurement, manufacturing, distribution andcustomer service we shall work to reduce consumption of resourcesand energy, to promote recycling, and to reduce waste materials andenvironmental loading.
l We shall carry out environmental audit, and review environmental
management system and environmental preservation activity for continuous improvement.
l We shall educate all employees to enhance their environmental awareness, and promote disclosure of
information and social communication, thereby actively contribute to community activities.
Revised January 6, 2003

The former Action Guidelines established in January 1998 has been revised here to cover
our extended environmental concern in every field around the Company to reflect recent
trends in society.

3III Overview of Target, Plan and Performance regarding
Environmental PreservationMedium-Term Targets and Performance

Targets and Performance ofMedium-Term Plan for Environment
Preservation Activities 2002
In fiscal 2001, based on the Basic Concept andActivity Guidelines, the Medium-Term Plan for

Targets and Performance of Medium-Term Plan for Environment
Preservation Activities 2002

Environment Preservation Activities 2002 wasformulated. The plan organizes the Company’senvironmental tasks, and sets up specific items
and targets of environmental preservation activity to be fulfilled by the end of fiscal 2002. The
table shows the performance and evaluation at
the end of the last period.

Item

TargetPerformance

Acquisition of ISO14001 certificationand continuous upgrading

Acquisition by all Works

Completed March 2003

Effluent reduction of hazardous substances and strengthening of chemical
substance control

Complete abolition of use of organic chlorine compounds by fiscal
2002

Incompletely abolished

Reduction of industrial waste

40 % reduction over fiscal 1995 infiscal 2002

59 % reduction

Start zero-emission activities

Definition formulated

Formulation of medium- and longterm energy conservation plan

Five-year plan formulated

Annual reduction of 1 % in energy
intensity per unit product (EIPUP)

8.2 % reduction over fiscal 1999

EvaluationDevelopment of education and promotion of information disclosure; Joining
social activities
Formulation of medium- and long-term
energy conservation plan
Promotion of development of productswith small environmental impact
Legend: Achieved beyond target

Promotion by development committee: Achieved: Slightly un-achieved: Considerably un-achieved

Targets of Medium-Term Plan forEnvironment Preservation Activities
2005
Based on the Environmental Activity Guide-Targets of Medium-Term Plan for Environment Preservation Activities 2005

lines reviewed in January 2003 and the resultsof the Medium-Term Plan for EnvironmentPreservation Activities 2002, the Medium-Term
Plan for Environment Preservation Activities
2005 has been formulated. Activity items andtargets until fiscal 2005 will be developed into
annual priority environmental activity targets,and subsequently brought into environmental

nReduction of industrial waste
Reduction of industrial waste
Zero-emission activities

30 % reduction over fiscal 2000 in fiscal 2005
50 % reduction of land fill quantity over fiscal 2000 in fiscal 2005

nReduction of greenhouse gases
Reduction of CO2 emission
Reduction of SF6 emission
Energy conservation

5 % reduction over fiscal 2000 in fiscal 2005
50 % reduction over fiscal 2000 in fiscal 2005
1 % reduction over previous year in terms of EIPUP

nEffluent reduction of chemical substances
25 % reduction over fiscal 2000 in fiscal 2005
(Targeted substances: Toluene, Xylene, Ethylbenzene, Trimethylbenzene)

management activities of individual businessbases.

nPromotion of green procurement
Achievement ratio for general commodity including stationery
Achievement ratio for purchased products from major vendors

100 % in fiscal 2005
100 % in fiscal 2004

nEco-design activities
Development of environment-friendly products
Evaluation of environmental impact
Investigation of trends and necessity by fiscal 2004

nReinforcement of organization for environmental management
Establishment of environmental management organizations in
the head and branch offices by fiscal 2005

nPromotion of consolidated pro-environmental management
Promotion of environmental activities in affiliated companies

4Overview of Targets, Plan and Performance regarding Environmental Preservation
Last Year’s Performance and This Year’s Targets
Priority Environmental Activity
Targets and Performance in
Fiscal 2002
Performance in Fiscal 2002 for the Medium-Priority Environmental Activity Targets and Performance in Fiscal 2002

Term Plan for Environment Preservation Activities 2002 is shown in the Table here.

ItemTarget

Acquisition of ISO14001 certification

Yokohama, Oyama, Shiga, Nikko(Sheet Plant)

Acquisition completed

Complete use abolition of three Oyama, Nikko, Kambara, Yokoorganic chlorine compounds
hamaKambara, Yokohama

Reduction of industrial waste

40 % reduction over fiscal 1995

57%

Zero-emission activities

Start of initiatives

Definition formulated

1 % reduction over the previous
year in EIPUP

5.7 % increase over fiscal 2001

Promotion of energy conservation activities

Performance

Level up and strict enforcement ofcontrol level

Review of set point for compressor pressures; Promotion of
inverter-controlled pumps

Introduction of chemical substance control system

Expansion to all Works

Limited to certain Works

Green procurement activities

Start of activity

Definition of related standards

Improvement in accuracy ofenvironmental accounting

Review of guidelines

Active participation in local
community activities

Participation of business bases

Legend: Achieved beyond target: Achieved: Slightly un-achieved

Evaluation: Considerably un-achieved

Priority Environmental Activity
Targets for Fiscal 2003
The Table here shows activity items and targets

Priority Environmental Activity Targets for Fiscal 2003

for fiscal 2003 developed from the MediumTerm Plan for Environment Preservation Ac-nReduction of industrial waste

18 % reduction over fiscal 2000

bring in these targets into their environmental

nZero-emission activities

30 % reduction over fiscal 2000

management activities, and plan to promote

nReduction of greenhouse gases

4 % reduction of CO2 emission over fiscal 2000

tivities 2005. Individual business bases will

their own activities.

nPromotion of energy conservation activities 1 % reduction in EIPUP over previous year
nEffluent reduction of chemical substances

25 % reduction over fiscal 2000

nPromotion of green procurement

Designing evaluation measure and procurement
processing system

nPromotion of consolidated pro-environmental management
Framework establishment of consolidated pro-environmental management and establishment ofpromotion organizationnEco-design activities
Development of environment-friendly products
Evaluation of environmental impacts

Promotion by Committee for Development ofEnvironment-Friendly Products
Investigation of LCA cases related to the Company

nReinforcement of organization for environmental management
Establishment of environmental management organization

5