Furukawa Electric Group
Sustainability Report2019Editorial Policy
This “Furukawa Electric Group Sustainability Report 2019” aims to inform all stakeholders including shareholders of “Financial
Information” such as management performance and strategy as well as “Non-financial Information” such as Environment, Socialand Governance (ESG)-related activities. We make efforts to edit the report that is easy for our stakeholders to understand thevarious measures and activities of Furukawa Electric Group.

Scope of This Report
Period Covered
Fiscal 2018, from April 1, 2018 to March 31, 2019(note) Includes selected information on past initiatives andactivities during fiscal 2019.

Accuracy of the Data Disclosed in This Report
In order to maintain accuracy in data disclosure, the information provided
in this report has been vetted by the divisions in charge of the relevant
information, the Investor & Public Relations Department, the CSR
Department and the Corporate Sustainability Office, which are in charge ofediting this report.

Organizations Covered

Information Disclosure System

This report covers Furukawa Electric Co., Ltd. and groupcompanies in Japan and overseas. Where activities arelimited to specific regions or companies, this fact has
been clearly indicated in the reporting.

Furukawa Electric is fully aware that the timely and appropriate disclosureof corporate information to investors is essential to a healthy stock market.
We take a serious approach to providing timely and appropriate corporate
information to investors, including through the development of internal
systems that allow us to disclose rapid, accurate and fair corporate
information in a way that always keeps investors’ perspective in mind.
Moreover, in order to increase the understanding of all stakeholders in
respect to our company, we try to provide information through a variety of
media, including non-financial information.

Publication Timeframe
Publication date: September 30, 2019
Planned publication of next edition: September 2020

Editing and PublicationC orporate Sustainability Office, Administration & CSR
Division, Furukawa Electric Co., Ltd.
2
 -3, Marunouchi 2-chome, Chiyoda-ku,
Tokyo 100-8322, Japan

Non-financial- CSR website- Sustainability reports-C orporate governancereports

Financial- IR website- Financial statements-S ecurities reports/Quarterly reports- Summary of accounts, etc.

Sustainability Reporthttps://www.furukawa.co.jp/en/csr/report/

History of Furukawa Electric’s CSR Activity and This Report1972 Companywide Rules for Pollution Prevention formulated
1974 Environmental Control Department and Energy Conservation Team established1989 Team for Reduction in Use of Specified CFCs established1992 Anti-Monopoly Act Guidelines issued
1993 Basic Framework for Protecting the Global Environment formulated
1996 Use of specified CFCs and trichloroethane discontinued
1997 Team for Promotion of Reduction in Industrial Waste established1998 Furukawa Electric Basic Environmental Policy formulated
Companywide Regulations for Pollution Prevention revised to create theCompanywide Regulations for Environmental Management
Acquisition of ISO 14001 certification commenced
2000 First “Environmental Report” published, the predecessor of this report
2001 Environmental accounting started
2002 Anti-Monopoly Law manual published2003 Executive Officer System introduced
Furukawa Electric Basic Environmental Policy revised
2004 Company system and chief officer system introduced
Furukawa Electric Group Action Guidelines formulated“Furukawa New Leaf” established as a special subsidiary offering employment topeople with disabilities
2005 Internal reporting system introduced and internal and external reporting desks
establishedCompliance Handbook published2006 Report published under the revised title “Environmental and Social Report”
2007 CSR Division established
Chief Social Responsibility Officer (CSRO) appointed
Corporate philosophy and corporate message of the Furukawa Electric Group
formulated
Report published under the revised title “CSR Report”

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20192008 Furukawa Electric Basic Environmental Policy formulated
Furukawa Electric Group Basic Policy on Social Contribution Activities formulated
Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated
Compliance pledge introduced
e-Friendly mark (environmentally harmonious product) certification system started
2009 Furukawa Electric Group Green Procurement Activity Guidelines published
Basic Policy on BCM (Business Continuity Management) formulated
Compliance awareness survey covering all employees conducted
A CSR award newly established as a part of the Outstanding Affiliated Company
Awards2010 CSR Deployment Guideline for Business Partners issued
Compliance awareness surveys for affiliated companies conducted2011 Information security and personal information protection months introduced
Furukawa Electric Group Basic Policy on CSR revised
Furukawa Electric Group CSR Code of Conduct revised, and Furukawa ElectricGroup Action Guidelines accordingly eliminatedCompetition Laws Compliance Guide published2012 Furukawa Electric Group Anti-Bribery Statement and Bribery Prevention Guide
formulated
Report name revised to Sustainability Report and issued
2013 Administration & CSR Division inaugurated
2014 Jointly conducted employee awareness surveys with Group companies in Japan
Published 2nd edition of competition law compliance guide (Japanese, English andChinese common edition)2015 Visiting elementary school to give classes
2016 Established contact for internal reporting system for overseas Group companies
Jointly conducted employee awareness surveys with Group companies in Japan2017 Established “Furukawa Electric CSIRT” as a measure against cyber security.
2019 Established “Corporate Sustainability Office”, in Administration & CSR DivisionFurukawa Electric Group
Sustainability Report 2019
Contents

Governance05

Furukawa Electric Group Philosophy

06

At a Glance, Furukawa Electric Group08

FY 2018 Topics

10

Financial Highlights / Non-financial Highlights

32

12

Innovation History of Furukawa Electric Group14

Steps of Furukawa Electric Group toward 2030

38	Interactions of the Stakeholders with
Furukawa Electric Group

16

Top Message
 residentP
Keiichi Kobayashi

20

CFO Message

22

Mid-term Management Plan (FY2016 to FY2020)

Corporate Governance

36	Directors and Audit & Supervisory
Board Members

40

CSR Management

42

Risk Management

44

Compliance

SocialFurukawa G Plan 2020
24

Business Overview

46

Relations with Our Customers

28

Special Issue 1

48

Relations with Business Partners

50

Relations with Shareholders

52

Relations with Employees

58

Relations with Communities

	State-of-the-Art Analysis Technology thatHas Supported and Accelerated Technology
Innovation within Furukawa Electric Group30

Special Issue 2

Environment	Aiming to Be a Creative and Very VibrantCorporate Group by Taking Advantages of
the Diverse Human Resources

Environmental Management / Material Flow /Targets and Performance of Environmental
Conservation Activities /Environmentally Friendly Products /Climate change measures / Reducing Waste /Water Resources /Chemical Substance Management /Environmental Risk Management /Biodiversity Conservation70

Non-financial Data

72

11-Year Financial and Non-Financial Data

74

Consolidated Financial Statements

80

Company Profile and Stock /Dividends Information

Furukawa Electric Group Sustainability Report 201960

Furukawa Electric Group
Sustainability Report2019

https://www.furukawa.co.jp/en/

Furukawa Electric Co., Ltd.

IE-135 199 TR 50

About the CoverSeven photographs, which are aligned lengthwiseon the cover, image “a sustainable society”
expressed in our Corporate Philosophy.
The illustration of the background shows“information and connection”. It is an example ofthe stage where we do business actively.

82	Environmental Certifications andExternal Evaluations
83

List of all applicable companies

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

3

20
世紀
century

Drawing on more than a century...

21
4

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019世紀
centuryFurukawa Electric Group Philosophy
CORPORATEPHILOSOPHY

Drawing on more than a century of expertise in the development andfabrication of advanced materials, we will contribute to the realizationof a sustainable society through continuous technological innovation.

MANAGEMENTPHILOSOPHY

With an eye to the future, the Furukawa Electric Group management team pledges to:- Live up to the expectations and trust invested in us by society, with fairness and integrity.
- Apply the sum total of our expertise to satisfy our customers and grow with them.
- Continuously strive to achieve world-class technological innovation, and transform
ourselves in every area of endeavor.
- Nurture human resources at every level, so that we can become a more diverse andcreative organization.

Core Value

Furukawa Electric Group, Vision 2030
In order to build a sustainable world and make people’s life safe, peaceful andrewarding, Furukawa Electric Group will create solutions for the newgeneration of global infrastructure combining information, energy and mobility.

We established “Furukawa Electric Group Philosophy” in 2007. In order to change into a company that
responds to drastic changes in the business environment, we unified the “Group Credo” into “Core Value”, andestablished our new group vision toward 2030 in May 2019. Also, we have systemized our Group Philosophy,
Core Value and Vision 2030 as the following.

Group Philosophy

We have set the 5 values, such as “Integrity”, “Innovation”, “Addressing Reality”,“Ownership and Speed” and “Collaboration”, that we wish to particularlyCore Valueemphasize and enhance even further, for the achievement of Group Philosophy
and the sustainable growth of Furukawa Electric Group, as “Core Value”.
We established “Furukawa Electric Group, Vision 2030” that clarified the time

Vision 2030

flame and business domains. We incorporate it into the next mid-term
management plan, and aim to become a company that has a presence.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20195

At a Glance, Furukawa Electric GroupFY2018 Net Sales and the Percentage by Segment, Main Products and Services
April 1 2018 to March 31, 2019

991.6
Communications Solutions
Energy Infrastructure
Automotive Products & Batteries

FY2018FY2017FY2016

Optical fiber

Optical fiber cables

Optical devices

Network routers

Energy Infrastructure 108.1 Billion yen 10%

Ultra-high and high voltage
underground transmission
cables and installation

Submarine transmission
cables and installation

Low to medium voltage
power cables

Power cable
accessories

Electronics & Automotive Systems 562.7 Billion yen 53.7%
Automotive Products & Batteries 267.3 Billion yen 28%

Electronics Component Material 295.4 Billion yen 26%

Wire harness

Steering rollconnector (SRC)

Copper andAluminum wire

Copper and Copper alloy
products, plating products andproducts for the electronics parts

Batteries for automotive
and industrial use

Peripheral monitoring
radar

Magnet wire

Copper tube

Functional Products 149.3 Billion yen 14.3%
Service and developments, etc.

Functional ProductsElectronics & Automotive Systems

843.3

Infrastructure 288.0 Billion yen 27.5%
Communications Solutions 179.9 Billion yen 17%

Electronics Component Material

Infrastructure

967.3

Billion yen (note)

Service anddevelopments, etc.
47.6 Billion yen 4.5%
Logistics, real-estate leasing,Superconducting products, etc.

Tape for semiconductor
process

Electrolytic
copper foil

Aluminum blanks for HDD

Green troughThermal management
solution & products

Hydroelectric power(note) Figures excludes intersegment transactions.

6

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Global Network

Group employees in total

Group companies in total

peoplecompanies

52,215(As of March 31, 2019)

Consolidated net sales

121

991.6

(As of March 31, 2019)(Years ended March 31, 2019)

Japan

North andCentral America

10,902 people
40 companies
521.3 Billion yen

9,518 people
12 companies
72.7 Billion yen

China

5,546 people
19 companies
94.0 Billion yen

South America,
Europe and others

2,692 people
16 companies
90.4 Billion yen

Group employees in total

As of March 31, 2019

Group companies in total

As of March 31, 2019

Net sales

Billion yen

Asia(except Japan and China)

23,557 people
34 社
213.3 Billion yen

Years ended March 31, 2019(note) Net sales values by regions are calculated by the customers’ locations.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20197

FY 2018 Topics

FY 2018
April to June

July to September

October to December

April

AugustCommunications Solutions

Management

Fiber laser welding technology:
Furukawa Electric Develops
Gapless Welding Technology
for Zinc-plated Steel Plates for
Automobiles

As part of the initiatives to prevent
global warming and with the aim of
reducing CO2 emissions, installsolar power generation equipment

Technology to help reduce manufacturing costs
and increase performance for automobile bodies

May
Communications Solutions
New Optical Fiber Cable Plant
Established in Morocco
Furukawa Electric Further Strengthens Business
Activities in the EMEA Market

Energy Infrastructure
Furukawa Electric Develops the
New Light, Simple, and Flexible
Rakuraku Cable System
New products to help improve working efficiency
during low voltage cable construction andstreamline related work

OctoberE

By using of renewable energy, green house gas,
CO2 emission was reduced.

Communications Solutions

Launched FITELnet F2500, themost suitable products for the highperformance and high-reliability networks
Adequate product for the high performance andhigh reliability required to the data center, thecloud and the large-scale corporate networks

SeptemberElectronics Component MaterialE urukawa Electric to IncreaseF
Production of “GOFC” Oxygenfree Copper Strips with Excellent
Thermal Resistance
Providing customers with value throughexcellent conductivity and thermal resistance

ResearchResearch Center in Silicon Valley
Established
Furukawa Electric Further Strengthens Its Open
Innovation and Global Industrial-Academic
Collaboration

Automotive Products & Batteries
Developed the “Peripheral monitoringradar” for the next generation vehicles,
equipped with the world top level
detection performance
A large forward stepto the achievement of
the future automatic
driving system

NovemberCommunications Solutions
Developed the “Reverse driving
detection system” using the quasimillimeter wave radar he stable detection performance in variousToutdoor environments was achieved

Research“Furukawa Electric Accelerator
2018,” an Open Innovation Programby Furukawa Electric and Creww,
Starts May 14

June
Functional Products
Furukawa Electric recognized forexcellence by Texas Instruments, asa semiconductor process-tape supplier
Research
Furukawa Electric Receives “Top100 Global Innovators 2017” Award

DecemberManagementS mployment of persons withE
disabilities:
Received the Shiga Prefecture
Governor’s award, “Challenged
WORK Promoting Office”.
2018 Shiga Prefecture Governor’s award for theemployment of persons with disabilities

Functional Products
The mat for Karate competitions“ProGame” was certified by theJapan Karatedo Federation.

Communications Solutions
Fiber laser welding technology:
Succeeded in laser welding of 50 sheetsof copper foil for the lithium-ion batteries
Contributes to the larger capacity lithium-ion
batteryCommunications Solutions
Furukawa is selected to provide
FTTH network in Mexico
Low friction optical drop cables
with connector

Functional Products

The mat for the Karate competitions.
“ProGame WKF certified mat”
Left: Satoshi Sakurai, IP Solutions Senior Director,
Clarivate Analytics (Japan) Co., Ltd.
Right: Tetsuro Ijichi, General Manager, Research &Development Division of Furukawa Electric Co., Ltd.

8FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

E

Sales Launched for a New Power Semiconductor Cooling
Device using a
newly developed
joining technologythat is free ofenvironment    Based on the mid-term plan “Furukawa G Plan 2020”, we have been working on to strengthening the businesses mainly
infrastructure (Communications Solutions and Energy Infrastructure) and automotive segments.

FY 2019January to March

April and later

January

April

ResearchResearch

Participated in the “Yokohama Innovators Community”
Sponsored by Yokohama City

Furukawa Electric Awarded “Top 100 Global Innovators 2018-19”

To solve the social issues through the collaboration with the participating
universities and companies

Selected in the Top 100 Global Innovative Companies and Research
Organizations in Strategic Intellectual Property Activities
Right: Keiko Tanahashi,
Vice President, Clarivate
Analytics (Japan) Co., Ltd.
Left: Tetsuro Ijichi,
General Manager, Research& Development Division of
Furukawa Electric Co., Ltd.

MayGManagement

Notice Regarding Partial Revision of Performance-Linked
Stock Remuneration System
January 7th the “New year Yokohama Innovators Festival in Kannai”

E

Functional Products

February

Announcing the Development of Technology to Regenerate
Single-use Plastics into High Strength Reinforced Plastics

Energy Infrastructure

A New Solution to the Global Plastic waste crisis

Acquired UL Verified Mark for the first time as thecable fire spread prevention product

Cable DuctS

Management
Selected as a brand of the 2019 Health andProductivity Stock Selection program

Selected as the company which takes strategic actions for employees’
health maintenanceFebrary 21,2019
Selected Company
Presentations
Left: Yoshihiro Seki,
State Minister of Economy,
Trade and Industry
Right: Ken Maki,
General Manager,
Strategy Division of Furukawa
Electric Co., Ltd.

Single-use
plastic Waste(PolyAl, plastic bags,
food packaging etc.)

Waste Paper(beverage cartons,
magazines etc)

Pallets

High Strength
Reinforced
Plastic

June
E

Energy InfrastructureAward of contract for development of high voltage dynamic
export submarine cable for floating offshore wind power plants

E

Communications Solutions

Fiber laser welding technology：
Realizing Higher Quality Welding in Aluminum Materials
Used for Automobiles
Contributing to Making Automobile Bodies Lighter and Improving Fuel
Efficiency
Welding Direction

Bead appearance ofpart welded underconventional conditions

Cross-section A
Cross-section B

March

Cross-section A

Cross-section B

Communications Solutions
Succeeded in a 2,009km of transmission at 715 terra
bits/second using the extended wavelength band andthe 19 cores bundled optical amplifier
Expected to reduce power consumption and provide space reduction,
while achieving both the large capacity and the long distancetransmission

Cross-section ofpart welded underconventional conditions

Welding defect (blowhole)

Bead appearance ofpart welded using
new technology

Cross-section A
Cross-section B

Cross-section A

2mm

Please visit our web site for more details.

2mm

2mm

Cross-section B

2mm

Cross-section ofpart welded using
new technology

https://www.furukawa.co.jp/en/release/
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20199

Financial Highlights
Net sales

991.6 Billion yen(Billions of yen)
1,200

867.8

40.8 Billion yen(Billions of yen)
50
967.3

1,000

Operating income / Operating income margin on sales

874.9

44.8

991.6

40.8

38.6

40

843.3

(%)
10

8

800
27.1

30

6
4.6

600
400

2.1

10

2014

2015

2016

2017

2018 (FY)Net income attributable to owners of the parent company

29.1Billion yen(Billions of yen)
35

(yen)
700
28.5

30

29.1

0

2014

2015

2016

500

20

17.6

405.05412.9810.0

141.74

100

0

2014
2015
2016
2017
Net income attributable to owners of the parent company

02018 (FY)Net income per share (EPS) *104.1812.0 %

(%)
15.0

12.9
12.0
9.3

10.0

400

200

249.170

Operating income margin on sales

Return on equity (ROE)

5.5

300

15
7.4

2018 (FY)

2017

600

25

5

4

2

Operating income

10

4.1

3.1

200
0

4.6

17.9

20

5.0

0.0

4.0

2014

2015

2016

2017

2018 (FY)*We changed the number of shares in a unit of the company's ordinary shares from 1,000 shares to 100 shareswith an effective date of October 1, 2016.
Assuming that similar stock consolidation took place, we have calcurated figures of EPS in FY2014 and FY2015.

Return on operating assets

11.2 %

(%)
15.0

13.1
11.2

Free cash flows（Billions of yen）
60
40

41.5

41.6

15.4 Billion yen
43.5

40.4

46.5

38.4

12.1
10.0
9.1

5.0

15.4

20

5.8

18.0
0

1.9

4.0

4.1

-36.4

-34.3

-20
-23.5
-40

0

2014
2015
2016
2017
2018 (FY)
Return on operating assets: Operating income / Operating assets(Operating assets: Inventories + Tangible and Intangible Fixed Assets)

10

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

-31.0

-60
2014

2015
2016
2017
2018 (FY)
Cash flows from operating activities
Cash flows from investment activities
Free cash flows

Non-financial Highlights
Greenhouse gas emissions

84.3 ×10 tons

Renewable energy ratio (domestic group)17%4(104 tons-CO2e)
100

9.0

6.3

(%)
20

17

4.9

17

17

15

80

60

(GWh)
800

600
47.5

46.1

48.1

15
12

46.0

45.6
400

10

40

20

0

613

35.1

35.7

35.3

33.8

2014

2015

2016

2017

2018 (FY)

Female manager rate0

(members)
40
3.3

3.5

35

3.2

2.8

25

2.0

20
31

1.5

31

15

26

23

22

10

0.5

5

0.0

0

2014

2015

2016

2017

Number of female manager

2018 (FY)5(Members)
14

10

3

2
4

3
5

2015

2016

109

2018 (FY)2017

Employee turnover rate

0

1.2%

(%)
2.5
2.0

2.0

1.5

3
5

3
5 5

8

1.2

1.0

1.0

0.5

0.0

1.1 1.5

2.1 1.0

1.2 1.8

1.0 0.9

1.2 1.6

2014

2015

2016

2017

2018 (FY)

Male

FemaleNumber of patent rights(Patents)
8,000

6,000

5

1.2

1.1

7,000

1

2014

Female manager rate

Number of outside directors

12

87

30

2.5

1.0

110

105

76

Renewable energy (Hydroelectric power generations and others)
Electric power consumption
Ratio

3.2%

(%)
4.0

2.7

642
5

CO2 (Furukawa Electric & Group companies in Japan)
SF6 (Furukawa Electric)
CO2 (Group companies overseas)

2.6

619

583

200

38.0

3.0

644

Total

7,163

6,724

6,685

6,827

7,021

7,163

2,166

2,236

2,263

2,450

2,640

4,558

4,449

4,564

4,571

4,523

2014

2015

2016

2017

2018 (FY)

5,000
4,000

6
4

3,000

9
8

7

7

7

7

2
0

2,000
1,000

2014

2015

Directors (in-house)

2016

2017

Outside directors

20182019 (FY)

Independent directors

0Domestic

Overseas

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201911

Innovation History of Furukawa Electric Group

1884 ～

1900 ～

Foundation & Dawning ofa New Era

Helping to Establish
Japan’s Social Infrastructure

The origins of our company can be traced back to
1884, when Ichibei Furukawa first smelted copper in
Honjo, Tokyo and Yamada Cable Works began
manufacturing electrical cables in Takashima-cho,
Yokohama.

Catering to demand for electricity and communications in thethen undeveloped Japan, Furukawa Electric expanded production
to include various rubber and cotton-covered wires, and in 1915
manufactured the nation’s first submarine electric cable. The
company continued to support the establishment of Japan’s social
infrastructure with its global quality technical capacity, such as byinstalling an antenna on Tokyo Tower, the country's largest radio
tower at the time.

Opened Honjo Copper Smeltery
and Yamada Cable Works
Founded as manufacturers of
wrought copper products andelectric cableStarted manufacturing electriccopper wires

1884 1889

1897 1915

Started Japan’s firstelectrodeposit copper
trial operations

Laid the world's first non-loaded
carrier submarine cable in the
Tsushima Strait

Developed a fully automatic
high-precision six-high rollingmill1937 1958 1964 1971

Manufactured Japan’s firstsubmarine electric cable

Installed an antenna andfeed line on Tokyo Tower

Installed a communica
tions network in Bang
kok, Thailand

Trends in the net sales

Net sales (Billions of yens)

1,500

1,000

1896

1920

1938

Yokohama Electric
Cable Manufacturing
Company

The Furukawa Electric Co., Ltd.

Osaka Copper Works(Copper Tube Division)

1906
Nikko Copper Electrolyzing Refinery,previously a subsidiary of Furukawa
Kogyo Co., Ltd.
(Nikko Works)

5000

Meiji Period

12

Taisho Period

1954

1952

1950

1948

1946

1944

1942

1940

1938

1936

1934

1932

1930

1928

1926

1924

1922

1920

1918

1916

1914

1912

1910

1908

1906

1904

1902

1900

1898

1896

0

Showa Period(note) In the years shown in blue of the above graph, Furukawa Electric, its predecessor company and its subsidiary were established, and the production
locations of Furukawa Electric were opened. The current production locations of Furukawa Electric are shown in parentheses.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

1960 ～

2000 ～

Expanding Overseas

Speeding up Global Development

From this period, Furukawa Electric launched
its full-scale efforts to enter the global market
with the hope of spreading its technical strengtharound the world. While building up a trackrecord in the Middle East, Southeast Asia, andelsewhere, it established manufacturing plantsfrom Southeast Asia all the way to Brazil, laying
the foundations for today's globalization.

The expansion of free trade areas after the end of the Cold War
accelerated the globalization of the world economy, which greatly sped up
Furukawa Electric's global development too. In 2001, it bought out the
optical fiber solution business of Lucent Technologies in the US, jumping
straight into the group of global leaders in the optical fiber market.
Global attention is on Furukawa Electric's capacity for technologicaldevelopment, such as its superconducting wire materials used in theEuropean LHC particle accelerator project, the largest in the world.

Contributed to the establishmentof high-capacity communications
based on wavelength multiple
xing technology (Mass production of

Established company in Brazil
manufacturing and selling aluminum
power cables

1480 nm pump laser diode modules)

Participated in the Floating
Offshore Wind Farm Demonstration Project

1982 2000 2001 2003 2011 2012 2018
Purchased SuperPower
Inc., a high-temperature
superconducting materials
manufacturer in the US.

2018

2016

2014

Consolidated

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1976

1974

1972

1970

1968

1966

Mie Works(Mie Works)

1964

1971

Chiba Cable Works(Chiba Works)

1962

1961

1982

Yokohama R&D Laboratories(Yokohama Works)

1980

1987

Furukawa Circuit Foil Co., Ltd.
(Copper Foil Division)

1978

1970

Hiratsuka Cable Works(Hiratsuka Works)

1960

1958

1958

1956

Non-Consolidated

Established the research
center in the Silicon Valley

2012

Contributed to the constructionof a global network by acquiring
Lucent Technologies’ opticalfiber division (OFS)

Completed large-scale powertransmission line installationin Iran

2010

World’s first success
ful field trial of opticalfiber cable

2008

1974

Received the Golden
Hadron Award from CERN
for superconducting wirematerials

FY

Heisei Period

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201913

Steps of Furukawa Electric Group toward 2030
Furukawa Electric Group has formulated its mid-term management plan for the period up to 2020, “Furukawa
G Plan 2020”, aimed at delivering sustained profitable growth and taking the group New Heights. We promote
this plan by setting the key initiatives as Strengthen and transform the businesses, Expand sales on the global
market and Accelerate the creation of new businesses. (Please refer to page 22 for details.)
With thinking about the Sustainable Development Goals (SDGs), which was set by the United Nations, weformulated “Furukawa Electric Group, Vision 2030” that clarified the time frame and business domains,
incorporate it into the next mid-term management plan, and aim to become a company that has a presence.

Furukawa G Plan 2020
Group Global Growth

ゆるぎない成長の実現
Furukawa
G Plan 2020

Market of
the automotive parts

Innovation

2017
2016

Key initiatives
14

2018
Expansion of vehicle wire
harness production centerin the Philippines

2018
New optical fiber cable plantestablished in Morocco

2016
Establishing two JV for the manufactureof optical semiconductors andrelated products withNTT Electronics Corporation

2016
VISCAS Corporation
business reorganization

2015
Establishing the high-power
Laser diode module JV
with Fanuc Corporation

2015

2014
2013

2019
2018

Strengthen
the group organization

Furukawa
G Plan 20152020

― Delivering Sustained Profitable Growth ―Market of
the infrastructure

2014
Establishment of southeast
Asian headquarters forautomotive parts in Thailand

2014
New FTTx parts production
plant in Mexico
2013
Construct new optical fiber
cables production plantin Colombia

2013
Establishment of
automotive parts company
in Mexico

1. Strengthen and transform the businesses
2. Expand sales on the global market

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

V i s i on 2 0 3 0

The Sustainable Development Goals (SDGs)
are a collection of 17 global goals and 169
targets set by the United Nations in 2015 forthe year of 2030.

2030

2021

Taking the group New Heights

2019
Establishment of
the future infrastructuretechnology center

2019
Expansion of aluminum wire
production in Vietnam

2017European JV establishmentwith Superior Essex

2019
Development ofplastics regeneratetechnology

2018
2018
Socialcooperation
Establishedprogram withthe research center
University of Tokyo2018
in the Silicon Valley
Development ofin US
the peripheral monitoringradar for automotive2019
Map out“Group Vision 2030”
2019
Establishment of
the transformation
division
2018
Announcement of
the head office relocationin 2021 to improve
HQ capability

2016
Established the open
laboratory inside
the Yokohama works

2016
Integration of the domestic
and the overseas
marketing divisions

2015
Development of
the aluminum harness
connection technology
2014
Transformation of
the laboratories’organization2013
Successful connection of
the floating wind turbine
equipment and the substation
with the floating
submarine cable2013
Developed the world's
highest standard forhigh-temperature
superconducting cables

3. Accelerate the creation of
new businesses

2015-2016
Established the division
responsible for the multiple
SBUs by the market axis
2015
Map out
the “Core Value”

2013
Transfer to the strategic
business unit andhead office divisions

2013
Establishment of
Furukawa groupglobal logo

Strengthen
the group organization
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201915

Top Message

Passion

PerseverancePride

We will transform intoa sustainable corporate groupby promoting ESG management.
What are the progresses ofthe mid-term management plan
and what are the future prospects?
Furukawa Electric Group has been promoting thefive-year mid-term management plan “Furukawa
G Plan 2020” for the period FY2016-2020,and strengthening the infrastructure business(communications and energy) and the automotive
business both positioned as priority areas. In FY2017,16

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

President
Keiichi Kobayashi
Furukawa Electric Co., Ltd.

we have achieved the FY2020 financial target of theoriginal plan ahead of its schedule, so during the
FY2018 period, we have set higher financial targets (theoperating income of at least 55.0 billion yen, the net
income attributable to owners of the parent company
of at least 30.0 billion yen, the return on equity (ROE)of at least 10%).
In FY2018, the consolidated operating income was
40.8 billion yen and the net income attributable toowners of the parent company was 29.1 billion yen

and the ROE was 12.0%.
Although we are recognizing that, in FY2019, themanagement target figures for FY2020 are not soeasy to achieve due to the uncertainty in the current
market environment and a slow down in the growthrate of the communications business. We will continue
to strengthen the focused businesses and products
and also continue to push forward the transformationof the low margin businesses and products, together
with the strengthening of the management structurethat can support an environmental change such as thecost reduction through the productivity improvement.
As actions to strengthen the focused businesses andproducts, in the infrastructure business, and having
our sights firmly fixed on the progress of 5G (note 1),
we will promote the expansion of the globalization of
the communications solution field, the contribution to
the stable supply of electric power that supports 5G
in the energy infrastructure field and the preparation
and reinforcement of the power lines and strength of
the interconnections in response to distributed power
generation following the increased use of renewableenergy. In the automotive field, we will continue tosupport CASE (note 2) with the strength of the aluminum
wire harnesses and the automotive products having
outstanding expertise. Regarding the transformationof the low-margin businesses and products, thebusiness portfolio including the collaboration withother companies is being reviewed by using the returnon operating assets which has been introduced as a
KPI (note 3) from FY2016, for the purpose of benefittingof an effective use of the management resources of
the Group.
In April 2019, by establishing the “Transformation
Division”, we are carrying out reformation activities
within the group’s overall effort, for the purpose ofstrengthening profitability and organizational execution
abilities. We will strive for thoroughly “strengthening
the organizational execution ability” by promoting thetransformation project which thoroughly utilize the
PDCA (Plan Do Check Action).
(note 1) The 5th generation mobile communication system(note 2) Connected, Autonomous, Shared & Services, Electric(note 3) Key Performance Indicator

In recent years, ESG management(Environment, Social and Governance) is
attracting attention. What are your state ofmind and action?
What is your overall state of mind?
Based on the corporate philosophy of the Group,
through our businesses, we have been aiming torealize a sustainable society while protecting the
global environment and a healthy society. In order toensure our sustainable growth over the future, we are
currently strengthening ESG endeavors. In order toaccelerate these endeavors, in April 2019, “Corporate
Sustainability Office” was established in the
Administration & CSR Division. And, for the purposeof achieving a management based on ESG, we will
construct the value creation story which is consistent
with Vision 2030 and mid-term management plan.
Based on these, we will promote the portfolio review
and business strategy formulation in collaboration withthe concerned divisions.
How do you specifically address eachE (environment), S (social) and G (governance)?
Regarding E (environment), as an action withrespect to the climate change, we are proactively
introducing renewable energy. Since the establishmentof Nikko Works in 1906 (Meiji 39), power has been
supplied by hydroelectric power generation utilizing
the water flow from Lake Chuzenji. In FY2018, byintroducing solar power generation commenced with
Copper Foil Division, the renewable energy ratio was
improved. In addition, in Mie Works, fuel conversion
is being promoted from LPG to LNG with lower CO2
emissions.
In May 2019, we announced about a developmentof a technology to recycle disposable plastics andpapers into reinforced plastics in one original process.
We will actively work on the technology that may bringnew solutions to the world’s plastic problems.
In FY2018, the Group has set new “Environmental
Target 2030”. And we upheld a contribution to a
decarbonized society, especially setting a midto long-term target figures for the reduction ofgreenhouse gas emissions, and obtained a SBT (note 4)
initiative certification.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201917

Top Message

Regarding S (social), based on the management
philosophy, “Nurture human resources at every level,
so that we can become a more diverse and creative
organization.” we are promoting “health management”
and “success of women” by also pushing forward thecareer development of women. This time, we wereselected for the first time amongst “The 2019 Health& Productivity Stock Selection”. In addition, we havebeen certified for three consecutive years as the“Health and Productivity Management Organization(White 500)”. Furthermore, in the “ERUBOSHI”,
which is a system to certify an excellent company for
women’s career development, we are continuing toearn the highest rank.
Regarding G (governance), we are working onstrengthening the corporate governance on thebasis of revising the corporate governance code.
Review of “Guidelines on Corporate Governance” andmanagement improvement of the board of directors
based on the effectiveness assessment of the Boardof Directors are in process. With the approval at thegeneral shareholder’s meeting on June 27, 2019,the number of independent outside directors haveincreased from 3 to 5, here we have one female
outside director, and thus the reinforcement andthe variety of the independency are progressing.
Regarding ESG management, discussions at theBoard of Directors are deepened to contribute toimprove the corporate value over the mid- to longterm.
(note 4) SBT: Science Based Targets (Greenhouse gas emission reduction
target consistent with scientific knowledge)

18

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

About
“Furukawa Electric Group, Vision 2030”
devised this time.
What are the backgrounds behind the Vision 2030?
The society surrounding us is rapidly and greatlychanging, and efforts to develop the life of people
while further emphasizing from the view point ofmaintaining the global environment are necessary.
In order to continuously contribute to this changing
society, we need to transform ourselves. In order to beable to support the society by providing new values, I
believe it is important to reorganize the management
resources of the Group anticipating changes in thesociety. It is necessary to orchestrate the power of
the Group by sharing the concept of what the groupwishes to be, and to promote collaboration withoutsiders to the Group.
On the other hand, we are positioning SDGs (note 5)
adopted by the United Nations as the important social
issue for 2030. Based on these backgrounds, weformulated “Furukawa Electric Group, Vision 2030”
that clarified the time flame and business domain.
Regarding “In order to continuously contributeto this changing society, we need to transform
ourselves”, what are the endeavors by the Group?
In recent years, with the advent of the technologythat will greatly change the past industrial way, thedays have come when the conventional “common
senses” and “success stories” do not work. In
order to deal with the major change in the society,
it is necessary to transform ourselves into anorganizational culture and employee consciousness

that can practice “innovation”, “ownership and speed”
and “collaboration” which are parts of the Core Value.
In FY2018, we came up with “People Vision” whichshowed the basic concept of the human resource
measures in general. In addition the “Transformation
Division” mentioned earlier is promoting efforts
to transform it into a vibrant organization culture
implemented by the Group employees.

Regarding “Promote collaboration with outsiders
to the Group”, what kind of specific activities havebeen started?
In order to achieve Vision 2030, innovations bycollaboration with all stakeholders are indispensable.
The open lab “Fun Lab® ” in Yokohama Works has
been becoming more active in its efforts towards
collaboration just as if the expansion of the facility
is becoming necessary. We are also working for
The Social Cooperation Program with the Universityof Tokyo that started in February 2018 and forthe accelerated activities aiming to strengthen thecollaboration with the startup companies. In August
2018, SVIL (note 6) was opened in Silicon Valley, a sourceof the global innovation. In February 2019, “Future
Infrastructure Technology Center” was established in
the Research & Development Division to accelerate
new business creation works through collaboration.
(note 5) SDGs: Sustainable Development Goals
Social issues to be solved by 2030, adopted by the United
Nations in 2015.
(note 6) SVIL: Silicon Valley Innovation Laboratories, Furukawa Electric
The fourth overseas research base of the company establishedin Silicon Valley, California, USA.

Furukawa Electric Group, Vision 2030

In conclusion, what is important for the Group
is to continue to be a sustainable groupin the future and to improve the value ofthe corporate group?
Mr. Ichibei Furukawa, the founder of Furukawa
Group, said “Let employees be important, customers
be important and the new technology be important.”
I believe “The three importance” are the fundamental
culture that still works today, in order to remain asustainable company. While adhering to this spirit,
striving to ensure safety, quality and compliance,these are absolute conditions for the Company tosurvive. On top of these, maintaining discussions
with internal and external people with an open mind
by watching changes in the society from a broad
perspective, by creating products and services thatcan solve customers’ and societies’ problems witha new technology, by working “stimulated” in thecontext that customers’ pleasure is our pleasure, andthen having pride and responsibility for what we havesent out to the world, when we can maintain to be insuch a virtuous cycle, I believe that we can continue
to be a sustainable company as an indispensable partof the society and to improve the corporate value.
Last but not least, while the world changes greatly
and rapidly, in order for all stakeholders to havereassurance and expectations, we will promote ESG
management without slowing down and continue
our transformation. W ith the slogan “Passion,
Perseverance, Pride”, I will lead the Group brightly andactively, and strive to increase the corporate value andto grow sustainably. We appreciate your continued
understanding and support for the Group.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201919

CFO Message

We will increase ourcash creation capability andimprove corporate value by
a steady return on growthinvestments and by
an improving asset
efficiency

Director and Corporate Vice President,
General Manager of the Finance & Global Management Division

Akihiro Fukunaga

What are you focusing on for now, as CFO?
FY2018 is a midpoint of the mid-term management
plan “Furukawa G Plan 2020”, in order to “deliver
sustained profitable growth” and to “take the group
New Heights”, I am working on (1) Strengthen andtransform the focused businesses, (2) Expand sale on
the global market, (3) Accelerate the creation of new
business.
For these purposes, we are strengthen thegrowth investments mainly in the infrastructure andautomotive segment, then the capital investment in
FY2018 exceeded the previous year. In FY2019, theinvestment level will be maintained at the same level
as the previous year, focusing on strengthening offurther cost competitiveness.
In terms of management indicators, especially net
debt equity ratio (NET D/E ratio), equity capital ratio,
and return on equity (ROE) levels are set as target
figures for FY2020, and we are focusing on improving
the financial health. In FY2018, in order to improveasset efficiency, we have proceeded with the sale ofassets such as real estates and securities and the
optimization of inventory balance.
However, we recognize that the extraordinary
loss due to low-margin businesses is the issue forus, we have considered and implemented various
countermeasures. Among them, as a uniquemanagement indicator, the Group has introduced

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

return on operating assets as a KPI since FY2016
which is the first fiscal year of the mid-term
management plan. This is an indicator to measure theprofit which could be earned through the operating
assets (inventories + tangible and intangible fixed
assets). We will strengthen the focused businesses
and improve the low-margin businesses by conducting
business management at each business unit based on
this KPI, and consistently make further improvement of
the asset efficiency in all companies of the Group.
Aiming for the management with an emphasis on
the asset efficiency, the basic principle of the capital
policy of the Company is to keep a good balance
between investments in future growth, cultivationof new business, improvement of financial healthand shareholder returns. Regarding the shareholder
returns, we have a stable dividend policy, the dividendin FY2018 was 85 yen/ share by increasing 5 yen, inview of profit growth.
“Furukawa G Plan 2020”
quantitative management targets (extract)
NET D/E ratio< 0.8

Equity capital ratio

> 30%

ROE

> 10%

Return on operating assets

10% or more

Return on operating assets = Operating income / operating assets(Operating assets = Inventories + Tangible and intangible fixed assets)

Some more information about investment in growth areas.
We are strengthening the growth investment, mainlyin the automotive and infrastructure (Communications
Solutions and Energy Infrastructure) segments. In
the 3 years for the period FY2018-2020, the capital
investment of 140 billion yen and R&D expenses of 70
billion yen are planned.
Regarding the capital investment, we believe,in addition to investing in order to meet the future
demands, it is important to strengthen the costcompetitiveness in order to cope with changes in thebusiness environment. And in FY2019, we will also
focus on the investments in rationalization such as
productivity improvement and information integration
systems.

Regarding the R&D, we are focusing on thedevelopment to support 5G society and CASE.
Particularly in recent years, we are actively promoting
actions for the open innovation with the aims ofspeeding up the new product development and theacceleration of the new business creation.
While looking at the balance between “cashflow”, “future growth” and “efficiency of capital”, andemphasizing the timing of the capital investment
and the contribution to the mid-term management
plan through the investment recovery, we will
sharply commit the capital investment and the R&D
investment and others.

CAPEX by segment

R&D expenses by segment(Billions of yen)(Billions of yen)

140 billion yen

60

70 billion yen

30

40

20

20

10

0

0
2015

2016

2017

2018

2019

2015

2020 (FY)Infrastructure
Functional Products

2016

2017

2018

2019

2020 (FY)Electronics & Automotive systems
Service and Development, etc.

Last but not least, your message.
The Group has 121 companies in Asia, theAmericas, Europe and others, and more than 50
thousand of employees. Globalization goes ahead
through the environment surrounding the Group,in addition to the increasingly diverse and complex
environment surrounding the Group, the geopoliticalrisk also increases, and then the uncertainty about the
future is increasing.
In such environmental changes, in order for theGroup to survive, we shall more powerfully promote
the global management.
In recent years, news and information about AI andIoT are being reported almost every day. In the Group,
the global accounting, financing and tax governanceare becoming more advanced and evolved bypromoting proactive efforts in administrative work as
well, for the application and the development of thelatest technologies such as RPA (Robotic Process
Automation), BI (Business Intelligence) and data
analytics.
And by the steady recovery of growth investment
and by improving asset efficiencies, we will increasecash generation and improve the corporate value.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201921

Mid-term Management Plan (FY2016 to FY2020)

Furukawa G Plan 2020

Strengthen the group organization in FY2016

1. Strengthen and transform the businessesKeyinitiatives 2. Expand sales in the global market- Established the division responsible for multiple SBUs(business divisions)- To the Global Marketing Sales Division.

3. Accelerate the creation of new business(Integration of the domestic and the overseas marketing divisions)

Furukawa Electric group has advanced management based on mid-term management plan for 5 years from FY2016 to FY2020.
The quantitative management targets originally set at the start of the current Mid-term Management Plan were achieved three years
ahead of schedule in FY2017. Therefore new quantitative management targets were set for FY2020 last year.
Furukawa G Plan 2020 Quantitative management targets
FY2015ResultAs of May 2016

FY2017
Result

FY2018Result

FY2019Forecast

As of May 2016

As of May 2018

(As the level for the 2020
Mid-term Managemetn
Plan and beyond)Operating income (yen)27.1 billion

38.6 billion

44.8 billion

40.8 billion

40.0 billion

At least 40.0 billion

At least 55.0 billion

Net income (yen)10.0 billion

17.6 billion

28.5 billion

29.1 billion

21.0 billion

At least 20.0 billion

At least 30.0 billion

1.19

0.99

0.88

0.81

0.8

－

< 0.8

< 0.8

Equity capital ratio

24.5%

27.6%

29.0%

30.3%

31%

－

> 30%

> 30%

ROE

5.5%

9.3%

12.9%

12.0%

8%

> 8%

> 10%

> 10%

Return on operating assets

9.1%

12.1%

13.1%

11.2%

11%

At least 10％

At least 10％

NET D/E Ratio

Strengthen the Growth Investments
The group is strengthening the growth investments mainly in theautomotive and infrastructure (Communications Solutions and Energy
Infrastructure) segments. In FY2019, we will also focus on investments inimproving productivity and rationalization.

Strengthen the investments for growth
CAPEX(Billions of yen)

60

FY2016-FY2020 plan

210.1 billion yen

R&D expenses(Billions of yen)30

FY2016-FY2018 actual50

107.1 billion yen

58.1 billion yen

25

FY2013-FY2015 actual40

FY2016-FY2020 plan

FY2016-FY2018 actual

120.1 billion yen

93.0 billion yen

FY2013-FY2015 actual
20

30

15

20

10

10

51.0 billion yen“Transformation Div.” wasestablished on April 1, 2019
Currently, the market environment surrounding thebusiness is weak, for this FY, we established the“Transformation Division” as the specialized division
responsible to strengthen the earnings capability andability of the organization to execute through a thoroughreview of costs and operational processes.
We start the “Transformation Project” that thoroughly
utilize the PDCA and strive to “Strengthen the ability ofthe organization to execute”.

Main initiatives- Accelerate the growth of the Optical Fiber and Cable
Products business again globally- Increase the probability and hasten the timing of realizing
the benefits from the Energy Infrastructure strategy
 urther optimize the product mix in the Copper & High-F
Performance Material Products business

Chiba Works
I n C h i b a Wo r k s , t h eestablishment of
manufacturing capability
a n d t h e p ro d u c t i v i t y
impro v e me n t f or the
long-length submarine
cable are in progress.

5002013 2014 2015 2016 2017 2018 2019 2020 (FY)2013 2014 2015 2016 2017 2018 2019 2020 (FY)

Details of the major investments in Furukawa G Plan 2020
Communications Solutions	Increase production of optical fiber, and improve the productivityof optical fiber and cable
Develop high value added products
Energy Infrastructure	Establish manufacturing capability and improve productivity forlong-length submarine cable
Automotive Products	Strengthen the production system directed at expanding wire
harnesses for North America
Develop onboard radar and other components that contribute toautonomous driving
Services, etc.	Invest in rationalization, such as information integration systems

222020 Mid-term Management Plan

FY2016
ResultFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

FALP (Philippines)

In Philippines, theproduction increase
investment for the wire
harnesses is proceeding.

Initiatives to Strengthen Businesses
In particular, various initiatives are being conducted to strengthen the businesses mainly in the infrastructure (Communications
Solutions and Energy Infrastructure) and automotive segments.

Communications Growth
opportunities
Solutions

5G (ultra-high speed/ large capacity, low latency, simultaneous connectionof multiple terminals)

Major initiatives-D evelop and expand sales of product lines and services that respond to higher speed,larger capacity communications.
- Increase the contributions to promoting the establishment of communications
infrastructure that supports the fusion of energy infrastructure and mobility.
 trengthen the global management system-S

EnergyGrowthInfrastructure opportunities

Prepare and reinforce the power lines and strengthen the interconnections
in response to distributed power generation following the increased use ofrenewable energy, and the stable supply of electric power to support 5G

Major initiatives- The new power cable organization started following the reorganization conducted in October 2016-N
 arrow down the focal segments(note), and focus on the segments in which the group
can utilize its strengths(note) Ultra-high voltage underground cable and submarine / underground cable for renewable energy in Japan, and submarine cable in Asia

- Increase the installation capacity, and strengthen the facilities for responding to submarine cable

Automotive
Products

Growthopportunities

Advances in CASE (lightweight, vehicle electrification, autonomous
driving, etc.)

Major initiatives-E xpand the overseas locations directed at expanding wire harnesses for North America-R espond to orders for aluminum wire harnesses that meet the requests for lighter weight-E xpand sales of product lines that contribute to autonomous driving (peripheral
monitoring radar, BSS, etc.)
In order to optimize the business portfolio, while improving the profitability of the low-margin businesses and products, we are
actively working for the creation of new business as well.
In FY 2016, the return on operating assets(note 1) was introduced. Directed at effectively utilizing the management resources of thegroup companies, we currently revising the business portfolio, including the partnerships with other companies.
Furthermore, for the creation of new business, we have been actively promoting initiatives for open innovation, such as theestablishment of the open laboratory “Fun Lab® ” (established in FY 2016 and renewed in June 2019), and the newly establishmentof the research base SVIL(note 2) in the Silicon Valley, in US (August 2018), etc.
(note 1) Return on operating assets : Operating Income / Operating assets(Operating assets=Inventories + Tangible and Intangible Fixed Assets)(note 2) SVIL : Silicon Valley Innovation Laboratories, Furukawa Electric

Further revise the business portfolio

Example of creating new businesse
Propose solutions that meet customer needs withthe high output lasers and high quality beam control

From FY2016, return on operating assets has introduced as a KPI.
Directed at effectively utilizing the management resources of the groupcompanies, currently revising the business portfolio, including thepartnerships with other companies
Response to the low-margin /non-core businesses

Create new businesses

Complete

Complete-D ownsize / withdraw from phosphor
bronze strips- Withdraw from the refrigerant pipebusiness (Okumura Metals)-S ell the shares of FCM-C ommercialize the fiber laser business aunch the reinforced plastics business-L(Cooperative venture with Tetra Pak andVeolia)Plan to complete within
the current fiscal year

Figures in ( ) indicate net sales-P roject A (About JPY 30 billion)
 roject B (About JPY 20 billion)-P roject C (About JPY 40 billion)-P

Various processing
solutions

Under consideration-P roject a (Conclude non-disclosureagreements with Company X andCompany Y)-P roject b (Considering a cooperative
venture with Company Z)

Welding galvanized Welding
steel plates
copper foilHigh quality
beam control

Beam mode control
technology

High efficiency
optical components
Demand for copper
following the trend
towards EV

High output
light source

LIB

%
200
150

Inverter
Motor

Harness

Indusrial lasersales(2017=100%)

100
2017 2018 2019

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

2022

23

Business Overview
Infrastructure

Optical Fiber and Cable Products

Business
division:

Communications Solutions

FITEL Products
Broadband Solution Business

Furukawa G Plan 2020 basic policy :Expand the global business with an eye on the advances in 5G
The Communications Solutions Division is made up of the Optical Fiber and Cable
products Division, FITEL products Division and Broadband Solutions Business Division, and
it is involved in the manufacture and sale of products for telecommunications infrastructure
and the design, installation and service of telecommunications networks.
The world is starting a transition to 5G (5th generation mobile telecommunications system),and this will bring about drastic changes to daily life.
For the 5G society, “ultra-high speed and high capacity”, “low latency” and “simultaneousconnections of multiple terminals” are required, and the division is working to develop andsell product lineups and services that respond to these social needs.
Optical Fiber

Optical Cable

Corporate Executive Vice President and General Manager of Communication Solutions Division

Takahide Kimura
Strengths

 lobal production locations serving growing markets
GDifferentiation through highly functional products andtechnology (optical fiber and cable, digital coherent, network
technology, etc.)

Initiatives to address
the current challenges

 educe the cost of manufacturing by increasing productivity
RImprove the way sales are conductedPromote the development of next generation products

FEC

OFS

FEL

Overview of FY2018
Products for network systems in Japan did well, backed by increased demand mainly due to the launch of 4K and 8K television broadcasting;and the sales of industrial lasers used for cutting and welding of metals also increased. However, the sales of optical fiber cables in North America
slowed down due to a delay in the recovery of demand as our main clients reduced investment.

Introduction of products
Business

OpticalFiber and
Cable
Products

FITEL
Products

Main products

Net sales
Main applications

Main customer
segments-L ow loss fibers for submarine
power cable and long distance-L ow bending loss
fiber for building/residential
applications- Telecommunications- Video broadcasts-D ata centers-R ollable ribbon cable- Telecommunications- Video broadcasts
 ata centers-D- Telecommunications
carriers
 ATV providers
-C
 TT
-O

-D
 igital coherent signal
light source utting, welding, etc.
-C-S ystem vendors- Transmission device
manufacturers- I ndustrial Processing
manufactures- Variablewavelength
laser modules(ITLA)- I ndustrial lasers- Telecommunications
carriers-C ATV providers
 TT-O(Billions of yen)

250
200

168.5

191.3

179.9

2017

2018 (FY)

150
100
50
0

2016

Operating income /Operating income margin on sales(Billions of yen)

16
14

14.2

(%)

12

-F
 TTH system devices

Broadband
solutions
Business-N etwork routers24- Telecommunications
service-B roadcast service
 esign, installation-D-C ATV providers-M unicipalities- Telecommunications
providers-H igh speed, high capacity
telecommunications
service-E stablish VPN- Telecommunications
providers eneral companies
-G

10
8

20

14.0
9.8

8.4%

6

7.3%

10

5.5%

4
2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

0

2016

2017

2018 (FY)0Infrastructure
Business
division:

Energy Infrastructure

Power Cable
Industrial Cable & Power Cable Accessories

Furukawa G Plan 2020 basic policy :Establish a business foundation for contributing to strengthening the interconnections
and preparing & toughening the power lines in response to renewable energy
The Energy Infrastructure Division is made up of the Power Cable Division and Industrial Cable& Power Cable Accessories Division, and it is involved in the manufacture, sale and installationof ultra-high voltage, high voltage and medium to low voltage power cable and equipment.
The Power Cable Division was newly established following the reorganization in October 2016.
Based on the national government policy of “make renewable energy a major source ofelectric power”, it will be necessary to prepare and reinforce the power lines in response toincreasingly distributed power generation and strengthen the interconnections in Japan. Also, astable supply of high-quality electric power is needed to support the 5G society, so while quickly
establishing the business base, the division will contribute to the shift to the future energy mix.
Corporate Executive Vice President and General Manager of Energy Infrastructure Division

Takamitsu Kozuka
Strengths

 bundant experience in delivering submarine and underground cableAHigh technical capability and quality

Initiatives to address
the current challenges

 trengthen the installation capabilities
S
Strengthen the facilities for submarine cables
Increase the productivity of cableExpand sales of low voltage aluminum CV cable

Overview of FY2018
An operating loss was recorded for the full year as a result of the low margin overseas underground cable projects ordered in the past and recording aprovision for construction losses in relation to strategic orders for submarine cable renewable energy projects. However, while definitely capturing thedemand for underground cable in Japan and increasing earnings from high value added products, efforts were made to strengthen and establish thebusiness base by improving cable productivity and increasing installation capability. Through these efforts, a profit was recorded in the 2nd half of FY2018.

Introduction of products
Main products

Net sales
Main applications

Main customer
segments-U ltra high voltage (220kV
and higher) and highvoltage (66kV and higher)
underground transmission
cables, accessories andinstallation-U nderground power lines- E lectric power (distribution)companies, large
between power plants
factories, etc.
- substations - large factories
 ew energy source-N-N ew energy power stationelectric power
related (interconnections),
companies (SPC), etc.
etc.

-S
 ubmarine transmission
cables and installation-S ubmarine power cable from newenergy power stations such as
offshore wind power stations(new business domain)- I nterconnections between regions
and to islands, etc.

-N ew energy source
electric powercompanies (SPC)- E lectric power (distribution)companies, etc.

-L ow to medium voltage power cables- I ndoor wiring in factories,
buildings, etc.
-W iring of the distribution
board/ control panel forfactory facilities/equipment-W iring of mobile equipment-S olar power systems-W iring of ship’s onboard
electrical equipment, etc.

-C onstruction
contractors-E lectronic appliancemanufacturers
 ailroad companies-R-S hipbuilding
companies, etc.

-E lectrical materials for
distribution lines irect and branch cable-D
connections- I nsulation and protection forconnectors
 lectric power supply to-Erailroad cars, etc.

-E lectric powercompanies
 onstruction-C
contractors-R ailroad companies,etc.

 lectric power distribution-E
accessories and overheadtransmission line accessories(Billions of yen)

120
100

95.3

102.1

108.1

80
60
40
20
0

2016

2017

2018 (FY)Operating income /Operating income margin on sales(Billions of yen)

(%)

2
1
0

2.0

0.1

1.0

0.2%
-1.6%

-1
-2
-3

0.0

-1.6

2016

2017

-1.0

-2.2%

-2.0

-2.4
-3.0
2018 (FY)FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

25

事業概要

Electronics & Automotive Systems

Electronics & Automotive Systems
Furukawa G Plan 2020 basic policy :Business
division:

Automotive Products& Batteries
Automotive Products
Batteries ※Electronics Component Material
Electric Conductor
Magnet Wire
Copper & High Performance
Material Products
Copper Tube

(note) The Battery Division is the business conducted by the listed subsidiary The Furukawa Battery CO., LTD.

Expand the business through the synergy effects
between materials and components
The Electronics & Automotive System Division is made up of the Automotive Products Division, Battery
Division, Electric Conductor Division, Magnet Wire Division, Copper & High performance Material Products
Division and Copper Tube Division, and it is involved in the manufacture and sale of automotive
components and copper products for electronics devices and materials.
In the automotive industry, the market for communications devices, sensors, control devices and passive
components has grown following the increased opportunities for sharing information and knowledge as aresult of “vehicle electrification”, “autonomous driving technology”, “IoT” and “AI”. Moreover, the materials
are also required to have diverse characteristics.
In response to the major changes underway around the world, the division is utilizing its capabilities inmaterial development, manufacturing technology, components and materials mainly in the automotive
components business, and it will make a wide range of valuable proposals that are unique to the company.
Corporate Executive Vice President and General Manager of Electronics & Automotive Systems Division

Hiroshi Kawaguchi
Strengths

 aterial development in line with customer needs
MProduct design and development utilizing the strength in materials

Initiatives to address
the current challenges

Expand the overseas locations directed at increased shipments ofwire harnesses to North America
Expand sales of original alloys that support the increasingly higher
performance of electronic devices
Improve profitability by improving the product mix andstrengthening the capabilities of manufacturing

Overview of FY2018
This segment maintained strong performance due to the following factors: Automotive Products business achieved strong sales of wire
harnesses; Copper & High Performance Material Products business improved the profitability by optimizing the product mix; and Magnet Wirebusiness benefited from steady sales of automotive products.

Introduction of products
SafetyLight Electriweight fication●●

Automotive
Products

●
●

●
●
●
●

Net sales
Key products

Market- Automotive- Electronics- Infrastracture

26(Billions of yen)

600

533.8

562.7

-Q
 uasi-millimeterwave radar- Advanced driver-assistancesystems (ADAS)- J apanese
automobile
manufacturers-S teering rollconnector (SRC) onnector for airbags-C- All automobile
manufacturers
worldwide,
including Tier 1-L ead battery state
detection sensor (BSS)- Vehicle power source
management- J apanese
automobile
manufacturers-P roducts using
flat cable- Electricity supply andsignal transmission forsliding doors and longslide seats- Automobile
manufacturers

Electronics Component Material
Automotive Products & Batteries- Aluminum harnesses orrosion-proof-Cterminal (α terminal)-R educe the weight ofvehicle wiring (W/H)- J apanese
automobile
manufacturers

Operating income /Operating income margin on sales-H igh voltage products-W iring for electricvehicles- J apanese
automobile
manufacturers(Billions of yen)

Main productsElectronics
Component
Materials

Main applications

Main customer
segmentsThinsheets300

100
0 eat pipes-H- Terminals- Anti-corrosion
terminal(α terminal)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

295.4

223.4

248.1

267.3

2016

2017

2018 (FY) ower-P
modules-S emiconductor leadframes

(%)

25

10

-S
 hielding
strips

285.6

232.1

200

15

- Various cables

Copper wire Magnet wire
Oxygenfree
copper

400

455.5

18.4

20

Main Applications-W ire
harnesses

500

5
0

12.8
2.7
2.8%
10.1

2016

19.7

5.1

6.3

3.4%

3.5%

13.2

13.5

2017

2018 (FY)Electronics Component Material
Automotive Products & Batteries

10
9%
8
7%
6
5%
4
3%
2
1%
0

Functional Products

AT & Functional Plastics
Thermal Management Solution & Products
Memory Disk
Copper Foil

Business
division:

Furukawa G Plan 2020 basic policy :(note) This segment includes the businesses of the listed subsidiary TOTOKU ELECTRIC CO., LTD. and etc.

Work to co-create with customers and continue to provide solutions
The Functional products Division is made up of the AT & Functional Plastics Division, ThermalManagement Solution & Products Division, Memory Disk Division and Copper Foil Division, and
it is involved in the manufacture and sale of functional products made from plastics and nonferrous metals.
The division is contributing through a diverse product lineup to the realization of a 5G society withhigher speed, higher capacity communications and to a sustainable society that will support this.
In the electronics market including data centers, while aiming to increase profits through welldifferentiated products with high added value, the division is providing solutions in line with thechanges in the social environment through product development based on the company’s
plastics technology.
Corporate Senior Vice President and General Manager of Functional Components Division

Ryoji OnoStrengths

Ability to propose and develop products in line with customer
needs

Initiatives to address
the current challenges

 evelop next generation products that will form theDfoundation of new revenue
Develop new markets and propose new applications
Improve further productivity and strengthen the ability torespond to market changes

Overview of FY2018
In the Copper Foil Division, the results were strong as a result of revising the product mix and capturing the robust demand through the end oflast year. In the Memory Disk Division, sales of aluminum hard disk drive blanks for data centers were strong through the end of last year, but inthe 4th quarter, the profitability of the overall business in this segment declined due to lower demand in the electronics market.

Introduction of products
Main products- Tape for
AT &Functional semiconductor
process
Plastics

Main applications- S urface protection, immobilizing,
etc. during semiconductor wafer
processing-S emiconductor chip
stacking in flash memory-S emiconductor manufacturers- f oundry manufacturers-C able protective
pipes- Troughs madefrom recycledmaterials- I nsulationmaterials

 rotective pipes for-P
underground cable- Troughs for holding
cables- I nsulation for air
conditioning ducts-G eneral construction
companies and subcontractors
 ailroads-R ighway public corporations-Hand road subcontractors- Air conditioning duct
manufacturers-E lectrolytic copper foil
for printed wiring boards

 igid printed wiring-Rboards PC-F-F CCL manufacturers-C CL manufacturers
 attery manufacturers-B-E lectrolytic
copper foil
for batteries-C athode material in lithium
ion batteries for vehicles

AT : Advanced Technology Tape

CopperFoil

Net sales
Main customer
segments-C opper, etc. including heat
ThermalManagement sinks andheat pipes
Solution &Products

Memory - Aluminum blanks
for HDD
Disk(Billions of yen)

180
160
140
120
100
80
60
40
20
0

153.1

149.3

2017

2018 (FY)

131.5

2016

Operating income /Operating income margin on sales(Billions of yen)

16-C
 athode material in lithium
ion batteries for consumer
products such as
smartphones and power tools

14
12
10

-H
 eat dissipation andcooling of CPUs andpower semiconductors,
electronics components,
high output LED lighting,etc.

-D ata center operators telecommu
nications base station operators-S martphone, PC and tablet
manufacturers
 anufacturers of power conditioners-M
for railroads and solar power- L ighting equipment manufacturers,etc.

 DD for PCs and data-H
centers-H
 DD substrate manufacturers

8

(%)

14.0

13.5

8.9%

9.2%

9.1%

2016

2017

2018 (FY)

11.7

20.0

10.0

6
4
2
0

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

0.0

27

1
Special Issue

State-of-the-Art Analysis Technology thatHas Supported and Accelerated Technology
Innovation within Furukawa Electric Group
Aiming to build a trust relationship with various stakeholders including
customers through analysis technology
Technology innovation is indispensable for Furukawa Electric Group to achieve sustained
profitable growth. Advanced techniques of material analysis are required to acceleratetechnology innovation. In order to accelerate the development of new products and improve
the reliability of existing products, Furukawa Electric Co., Ltd. (FEC) is utilizing various stateof-the-art analysis techniques, including electron microscopy. Additionally, FEC advancescollaborative research with several universities by open innovation, developing novel
techniques for analyzing materials and products.

Roles of the Analysis Technology Center
At the actual sites where cutting-edge products are developed, it
is essential to thoroughly understand the materials that constitutethe products, control the materials, and produce the products as
designed. New products have been developed due to our increased
understanding and control of compound semiconductors (indium
phosphide, etc.) in the case of semiconductor laser diodes (LDs),
copper and related materials in the case of copper foils, and copperand copper alloy products, and adhesive compound/backing films
in the case of tape for semiconductor processes. When any type ofproblem occurs at the plants, it is necessary to quickly conducttroubleshooting and thoroughly investigate the cause.
FEC has set up the Analysis Technology Center (ATC) under
A dv anc e d Te chnologie s R & D L abor a torie s, R e search &Development Division. ATC has accelerated the development of

Plant

Laboratory

new products in each laboratory
and supported the production ofProfessor Shibata (the University
existing products in each factoryof Tokyo) and FEC’s researchers
have developed a novel method of
by utilizing the technologies ofsemiconductor observation andmaterial analysis, reliability, simuanalysis using a state-of-the-art
lation, and artificial intelligence (AI)transmission electron microscope.
applications.
When FEC does not possess the right equipment for an analysis,
ATC typically borrows it, such as a state-of-the-art electron
microscope from the University of Tokyo, or utilizes a synchrotron
radiation facility such as SPring-8, which is used for analyzing many
products.
Through conducting reliable material analysis and providing
customers with products based on science, ATC is contributing tosolving customers’ problems together, aiming to be a company thatis fully trusted by its various stakeholders.

Provide products
based on scienceNew
product

Customers

Mechanism
analysison newmaterials

Immediatetroubleshooting
Utilizingstate-of-the-art
science

Analysis Technology Center

500m

External
research facility

28

State-of-the-art
electronmicroscope

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

SPing-8 (large synchrotron
radiation facility)(note 1) SPring-8 (located in
Harima Science Park City,
Hyogo Prefecture, Japan) is
the world’s largest synchrotron radiation facility anddelivers the most powerfulsynchrotron radiation.
SPring-8 generally enables
analysis with higher precision and higher sensitivity
than laboratory-based
equipment, being capableof investigating the products
in detail.

Analysis of Semiconductor Laser Diodes by Transmission Electron Microscopy
Recently, in order to respond to rapid increases in data traffic, we have developed ITLA (note 2). In
recognition of its “development of high-power/narrow-width/wideband variable wavelength laser modules
for high-capacity digital coherent optical telecommunications systems”, FEC was awarded the 64th
Okochi Memorial Production Prize in 2017.
The semiconductor LD, which is one of the main components of ITLA, is made of a crystal mainlycomposed of indium and phosphor. The multi-layer structure of the semiconductor crystal is controlled at
the atomic level, and semiconductor LDs are produced. A transmission electron microscope (note 3) (TEM)
capable of observing the LD sample with a scale of 1 nanometer or less is required to maintain highquality and high reliability. ATC quickly improves the quality and thoroughly investigates the cause ofproblems by utilizing the electron microscope owned by FEC. Additionally, for advanced analysis, ATCutilizes state-of-the-art electron microscopes owned by external research institutions, thus accelerating
the development of next-generation semiconductor LD products.
(note 2) Please refer to page 24 for ITLA.
(note 3) Transmission Electron Microscope: Technique and equipment to observe and analyze the fine structure of samples

Collaborative Research on State-of-the-art Transmission Electron Microscope with
the University of Tokyo
A novel method of semiconductor observation and analysis using DPC-STEM (note 4) has been developed
through collaborative research with Prof. Yuichi Ikuhara and Prof. Naoya Shibata from the University ofTokyo. The details of this method were published in “Scientific Report” in 2015. The product of thiscollaborative research was created by a fusion of core technologies (specifically, the electron microscope
technique and scientific knowledge) contributed by both FEC and the University of Tokyo. FEC has sinceapplied this method to accelerating development and improving reliability ofsemiconductor LDs.
To accelerate the development of various products as well as the semiconductor
laser diode, FEC has utilized the advanced transmission electron microscope ownedby the University of Tokyo. The right-hand figure shows a sample image of oxygen freecopper (OFC) with atomic scale taken by HAADF-STEM (note 5). Please refer to page 26
for OFC, which is the main product of the Electronics Component Material business.

0.5 nmIndium atom

(note 4) DPC-STEM: Differential Phase Contrast-Scanning Transmission Electron Microscope(note 5) HAADF-STEM: High-Angle Annular Dark Field Scanning Transmission Electron Microscope

1 nm

Oxygen free copper coil

Artificial pins (note 6) within ten nanometers in diameter exist in superconducting tape. Superconductivity
characteristic can be dramatically improved by controlling the size and density of artificial pins insuperconducting tape.
We have developed a highly precise analysis of thesize and density of artificial pins in superconducting
materials using Small Angle X-ray Scattering (note 7) at
SPring-8. Design guidelines for artificial pins based on a
new concept are obtained by this analysis method. This
contributes to the production of superconducting
products with high reliability by feeding back to the
manufacturing process.
50 nm
High-temperature
superconductingtape

TEM image of the artificial pins
(The spots scattered in the picture show
the artificial pins)

TEM image of OFC crystal

8
Diameter of artificial
pinning center (nm)Analysis of High-temperature Superconducting Tapes
Utilizing SPring-8(note 6) Artificial Pin: Non-superconducting phase to intentionally pin themagnetic flux moving in superconducting materials
 mall Angle X-ray Scattering: X-rays scattered from a material(note 7) S
by irradiating x-rays are analyzed to obtain information on the
average diameter and density of the nanoparticles (typically a few
nanometers) in the material.

Phosphor atom

TEM image of indium phosphidecrystal that constitutes one of thesemiconductor LDs

7
6
5
4

0

10

20

30

Zr content (%)

Diameter of artificial pins by
SAXS

Installation of the Latest X-ray Photoelectron Spectroscopy Apparatus
The latest x-ray photoelectron spectroscopy (XPS) (note 8) apparatus was installed at theAnalysis Technology Center at Yokohama Works in fiscal 2018. ATC previously carried out
hard x-ray photoelectron spectroscopy (HAXPES) at synchrotron radiation facilities such as
SPring-8. However, after installing the XPS equipped with a new option (a hard x-ray),
HAXPES is now performed at Furukawa Electric Group.
It is now possible to immediately investigate issues related to quality control and trouble
shooting. ATC performs analysis within a few nanometers of the surface of various products
Dual Scanning XPS apparatus installed in fiscal 2018such as semiconductor LDs, tape for semiconductor processes, copper foil, andsuperconducting materials. ATC has been playing a key part in providing highly reliable products to customers.
Through improvements to our analysis technology of products, we have supported and accelerated technology innovation at Furukawa
Electric Group.
(note 8) X-ray Photoelectron Spectroscopy (XPS): XPS is a technique that detects the photoelectrons emitted from a sample surface by irradiating x-rays, and analyzes elements andchemical bonding state within a few nanometers of the sample surface.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201929

2
Special Issue

Aiming to Be a Creative and Very VibrantCorporate Group by Taking Advantages of
the Diverse Human Resources
To be a corporate group where everyone can work actively,
continue to grow and be proud of belonging
Furukawa Electric Group has been seriously
implementing various procedures and policies
such as diversity & inclusion promotion andwork style reform and health management,
aiming at creating new values and continuous
growth. This is being accomplished by stimulating a comprehensive capability based on“One Furukawa” with a common sense of values
and of criterion for judgment. It is also achieved
with the help of diverse human resources
stimulating job satisfaction and actively taking
advantage of each particular strength.

Health Management
On May 15, 2017, Furukawa Electric Group announced“Furukawa Electric Group Health Management Declaration” with the
purpose to promote the “Health Management” which is working forthe strategic health management and health promotion. We havebeen carrying out the health management activities based on thisdeclaration, and has been certified as the “Health and Productivity
Management Organization (White 500)” for three consecutive years.
And, in fiscal 2019, we were selected to “Health and Productivity
Stock Selection 2019” by the Ministry of Economy, Trade andIndustry and by the Tokyo Stock Exchange.

Improvement of the employee health literacy
In the annual guidelines on health and hygiene for fiscal 2018, we
have introduced “Introduction of employee health literacy improving
activities coupled with the Work Style Reform and to the Health
Insurance Association”, and we are carrying out various activities atall business sites.

“One Furukawa”
Activating diverse talent
Improve productivity
per hourCreation of new value

Wellness
promotion

Work
style
reform

Improving job satisfaction& work style
Autonomous work-life management

Strategic
human resource
development &utilization

Diversity &inclusion
promotionGroupphilosophy
permeation

Human resources who embody Core Values and create the next generation“Health One-Word Declaration” by all employees
As a part of the employee health literacy activity, from fiscal 2018,
we requested all employees to state, at their workplace, “Health
One-Word Declaration” about their intension to do or should do for
health improvement. In fiscal 2018, 84% of the employee made the
Health One-Word Declaration.

Health Education Activity in cooperation with
the Health Insurance Association and the Laborers’ Union
In cooperation with Furukawa Electric Health Insurance
Association, the health promotion activity related to each theme isimplemented by deciding a monthly theme (such as eating habit
improvement and cancer prevention) at every quarter.
Also in cooperation with the Labors’ Union, under the labor andmanagement co-sponsorship, the seminars based on age group of
employees (40s: middle-age seminar, 50s: second life seminar, etc.)
are held. In each program of the seminar, the educations related tothe health promotion for the mind and the body, on an age baseclassification, are held.

Middle-age
seminarLeft: “Seki” State Minister of Ministryof Economy, Trade and Industry
Right: “Maki” General Manager ofStrategy Division30

The Health and Productivity Awards 2019held on February 21st

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Women’s healthseminarDiversity & Inclusion Promotion
Since fiscal 2005, we have been continuously working for women’s working
environment improvement and the work-life balance promotion. In April of 2014,
Diversity Promotion Section was established, which is working for the diversity andinclusion awareness enlightenment, the success of women promotion and theautonomous work-life management.
In fiscal 2018, in Yokohama Works, with the theme of “Working lithely and globally”,
a diversity promotion event such as lectures by directors and managers from
Furukawa Electric LatAm S.A. (Brazil) and OFS Fitel, LLC (USA) in Furukawa ElectricGroup, and very actively opinions were exchanged.

The work style reform activity which was started in 2015, hasentered Phase 2 since fiscal 2018. (The figure below)
Then, an award was newly set, we started to commend andpraise good activities to be helpful to other groups and to share theconcept within the groups. And, “preceding case seminar” lectured

Chiba Works of the Company was recognized as
a commendation company by Ichihara City, for its
various parenting supporting system and forsupporting parenting participation by male.

Awards ceremony for the “Ichihara City Commendation
project for the work and parenting compatibility
supporting and promoting company”

Panel discussion by the directors and the managers in Furukawa Electric
LatAm S.A. (Brazil) and OFS Fitel, LLC (USA)HKShare the Work Style Reform and Its Results

Furukawa Electric Chiba Works Was Awarded“2018 Ichihara City Commendation Project for
the Work and Parenting Compatibility
Supporting and Promoting Company”.

by the awarded group was held.
In the seminar titled “The first step for the work style reform”, thecase, that starting by sharing thoughts created a sense of unity andenabled us to actively challenge various improvements, waspresented bringing the truth with their hard experience. In the followup questionnaire, 80% of them were “It seems to be able to work intheir own group”.

Overall picture of work style reform Phase 2
Toward a corporate group where each andevery employee works with excitement, and collaboration!
Enhancement of individual life

Job driven individual growth

Sustainable growth ofthe company

Autonomous work-life
management

Culture for learning andgrowing one another

Practice of Change(includes things outside work)

Preceding case seminar

Furukawa Electric Group Vision
for Our People
Among the management related philosophy and thepolicy of the Group, as a consistent and basic idea of
the general human resources measures, Furukawa
Electric Group Vision for Our People was formulated.
We will continue to achieve the following three issues
by promoting the concepts which are presented in the
People Vision.
(1) E mployees, to grow autonomously and develop theircareers(2) L eaders, to be key persons to promote the auto
nomous growth of the diverse human resources uman resource departments in each affiliate, to(3) H
continue to promote their human resource measures
based on the People Vision

Furukawa Electric Group Vision for Our People
The people of Furukawa Electric Group are our greatest value.
We recognize that investment in the development of our people will enable sustainable
long term success of our Group.

Role of the Individual●Each individual proactively andcontinuously develop and deliver
the best of their skills andcompetencies throughengagement and collaboration.
●As a member of both Furukawa ElectricGroup and the global community, eachindividual must work with ethics andintegrity in mind, and put their effort
towards making the world a better place.

Role of the Leader●Leaders encourage the engagement of all
people while supporting the growth of theindividual.
●Leaders facilitate the transformation of theindividual’ s skills and competencies todeliver successful organizational
accomplishments.
●Leaders demonstrate behaviors that support
a creative and positive organizational culture
through teamwork and collaboration.

Principles of

Human Resources●All human resource policies, procedures
and systems will reflect fairness, support
diversity and encourage all of our talent toproactively challenge and develop
themselves.

●By fostering on organizational
culture which value people,
Furukawa Electric Group will
nurture each individual’ s
confidence in the company.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201931

GovernanceCorporate Governance
Basic Views on Corporate Governance and Guideline on Corporate Governance
Basic Views on Corporate Governance
Based on the “Furukawa Electric Group Philosophy”, Furukawa Electric Co., Ltd. and the Furukawa Electric Group secure
the transparency and fairness and strive to enhance its performance by promptly responding to changes in the businessenvironment and the market through efficient management based on prompt decision making. At the same time, we ensure
sound management by developing and establishing an internal control system and applying it effectively. We uphold thebasic policy of seeking to expand and develop our operations on a sustainable basis and to raise corporate value throughthese efforts. In accordance with the following views, we seek to strengthen and enhance our corporate governance.
i. We secure the rights and equal treatment of shareholders.
ii.	We consider interests of stakeholders including shareholders, and cooperate appropriately with them.
iii. We ensure appropriate information disclosure and transparency.
iv.	Given its fiduciary responsibility and accountability to shareholders, the board regards the rolesof independent directors important and carries out effective oversight of operation from objective
standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies in accordancewith interests of mid- to long-term shareholders.

Guideline on Corporate Governance
Based on “Basic Views on Corporate Governance”, we
adopted “Guidelines on Corporate Governance” as apolicy for enhancing our corporate governance.

Efforts up till now
We have been working on strengthening thecorporate governance since 2008, including
increasing the number of the Outside Officers. In
response to the establishment of the “Corporate
Governance Code” by Tokyo Stock Exchange,
Inc. in June 2015, we have implemented various
efforts such as the formulation of basic policies
on the corporate governance and starting
among which is effectiveness of the Board of
Directors evaluation.
We will continue to work on the improvementof the corporate governance by the positioning
and the strengthening of the corporate
governance as an effort to improve the corporate
value being as one of our important measures tostrengthen the management.

https://www.furukawa.co.jp/en/company/
governance.html

Major efforts towards the strengthening of the corporate governance2003- The number of the Directors was reduced. (The term of service of the Directors was reduced
from two years to one year)- The executive officers system was introduced.

2008

-S
 tarted the effort to increase the number of the Outside Directors.

2010

-E
 stablished the Compensation Committee.

2014

-S
 tructured the Audit & Supervisory Board members, to 3 people from in-house and 3 people
from outside.

2015

-E
 stablished the Independence Standards for the Outside Officers.
 stablished the Nominating/Compensation Committee, former Compensation Committee.
-E-S
 tarted the evaluation of the effectiveness of the Board of Directors, and the summary of theresult was published. (annually conducted)-E stablished “Guidelines on Corporate Governance”.

2016- An Outside Director was appointed as the chairman of the Nominating/Compensation Committee.
- The Chairman became the Director without the representative right of the Board of Directors.
-R evision of the officer’s compensation system (which consists of the basic remuneration, shortterm performance-linked remuneration and mid- to long-term performance-linked remuneration).
- The number of the Outside Directors was changed to the current 5 members.

2017- As a process to evaluate the effectiveness of the Board of Directors, the Chairman conducted
the interviews.

2019

-P
 artial revision of the officer’s compensation system approved in fiscal 2016 (to aim atstrengthening incentives)-F emale outside director takes office. All outside directors are independent

Overview of Corporate Governance System

32

Corporate governance

Board Members and of the Audit & Supervisory Board

We consider that the effectiveness of the audit on thefrom the Board of Directors. So we adopted the “Audit &execution of the duties by the Directors is secured, based

Supervisory Board” type of the governance organization.

on the coordination with the accounting auditors and the

And we have a “Nominating/ Compensation Committee”,

internal auditing department, while maintaining the

majority members of which are outside directors to

institutional independence of the Audit & Supervisorycomplement oversight function of the board.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

GovernanceCorporate governance organization chart

Oversight and Supervising● Board of Directors

Shareholders’ Meeting

Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

12 Directors(5 members are outside and independent)

corporate value over the mid- to long-term andboard oversights and determines the matters listed

Consults andCommits
Submits
proposals
andreports

・Screens reports
relating toaccounting
・Examines
status ofoperations andassets・Screens reports
relating to business・Examines status ofoperations and assets
・Decision of critical matter
relating to business
operation・Supervises business
operation

Monitors

As our policy, the Outside Officers are expected to

Accounting
Auditors

6 Audit & Supervisory

CSR and Risk
Management Committee

Business
Operation

Audit & Supervisory Submits
reports
Board

Collaboration
Submits reports,
Board Members
attends meetings (3 members are outside between
auditsand audits
and independent)

Nominating /Compensation
Committee

below:
1. Determination of corporate governance-related matters;
2.	Establishment and amendment of business strategies andoversight of execution of such strategies and plans bymanagement;
3.	Setting capital allocation policy;
4.	Appointment and dismissal of executives including
representative director and corporate vice president, anddetermination of the compensation of them (including
delegating these to Nominating/Compensation Committee);
5.	Establishment of an internal control system relating tocompliance and financial reporting and risk management
systems, and oversight of them;
6. Decision on important business matters;
7.	Others prescribed by the applicable laws and regulations etc.

Appoints

Appoints

Audits account

Board of Directors

sustainable corporate growth and the increase ofenhancing earnings capability and capital efficiency. The

Appoints

Monitoring andSupervising

Appoints

President

Submits reports

Internal Audits(Auditing
Department)

Corporate Divisions
Direction

Management
Committee

・Transformation Div.
・Finance & Global Management Div.
・Strategy Div.
・Research & Development Div.
・Administration & CSR Div. ・MONOZUKURI Innovation Div.

Provides support and guidance

Operations

make suggestions from various viewpoints and angles
in the discussion of the Board of Directors, and people
with different knowledge and backgrounds are
selected.
With respect to the selection of the officers, theBoard of Directors makes a decision by consulting theNominating/Compensation Committee and being

Communications Solutions Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Solutions Business Div.

Energy Infrastructure Div.

Electronics & Automotive
Systems Div.
・Automotive Products Div.
・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
・Copper Tube Div.

Functional Products Div.

・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.

・Thermal Management
Solution & Products Div.
・Copper Foil Div.
・AT & Functional Plastics Div.
・Memory Disk Div.

Global Marketing
Sales Div.

Subsidiaries andaffiliated companies

As of June 27, 2019

based on their report.
Expertise of the Outside Officers

Board of Directors
Chairmanof the Board- A position of non-executive
without the representative right.
- Connect between the Outside Directors
and the Executive Directors.

Chairman
The Executive
Directors
6 members

Discussion
and decision
Supervising

All 5 members are
independent.

President and other generalmanagers of the major
business and corporate
divisions are concurrently
appointed as directors.

Audit &
Supervisory
Board Members
6 members

OutsideDirectors
5 members

Draw attention
Make opinions

All 3 members are
independent.

Outside Officers
In-house- Company manager - Government experience- Technical engineer - Financial, accounting expert- Legal affairs, Risk management expert- Governance expert - Global management experiencer

OutsideVariety of human resources with wealth of knowledge
and experiences such as shown above.

As of June 27, 2019

OutsideDirectors

Sumitaka
FujitaMr. Fujita has served for many years in a key positions on the management such asa Chef Financial Officer (CFO) and has a wealth of knowledge and experience on
general business management including financial accounting. He also has a highperception of the corporate governance.

Osamu
Mr. Tsukamoto has a long experience of involvement in the industrial policy at the
Tsukamoto Ministry of Economy, Trade and Industry, and has a high perception on thetechnologies and the development of the new businesses.
Akira
Nakamoto

Mr. Nakamoto has served for long years in key positions such as President andChairman of a major precision equipment manufacturer, and has an extensive
knowledge and experience in the corporate management in general.

YoshiroMiyokawa

Mr. Miyokawa has served for long years in key positions such as Director & Vice
President at a large pharmaceutical company, and an extensive knowledge andexperience in corporate management, compliance, and corporate governance.

YukikoYabu

Ms. Yabu has served as outside officer of several listed companies, and has awealth of experience and advanced knowledge of customer-oriented marketingand product development based on her experience with a leading electricalappliance manufacturer.

OutsideYuzuruAudit &
FujitaSupervisory
Board
TakashiMembers
Tsukamoto
Kunihiko
Sakai

Mr. Fujita has served for many years in key positions such as President andChairman of a life insurance company and has an extensive knowledge andexperience in overall corporate management, including the financial accounting.
Mr. Tsukamoto has served for many years in key positions such as Chairman and a
director in charge of finance in a financial institution and has an extensive knowledge
and experience in overall corporate management, including financial accounting.
Mr. Sakai has a high perception in fields such as: the corporate governance, thelegal risk associated with management and its compliance to regulations,capitalizing his long experience as a legal professional including its foreign one.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201933

Outside Officers Meeting

Nominating/Compensation Committee

The Outside Officers meeting is regularly
held for the purpose of exchanging information,
sharing recognition among the Outside Officers
based on the objective position, and forreporting their opinions shared with the Boardof Directors if necessity.
The Committee consists of all Outside
Directors and Audit & Supervisory Board
Members, and the Secretary of the Outside
Officers is elected from the independent
outside directors.
In fiscal 2018, the meeting was held threetimes with discussion about the management
issues in general and the management of theBoard of Directors.

We have established the Nominating/Compensation Committee with a majorityof the members from the Outside Directors, aiming to supplement the supervisory
function of the Board of Directors. The Committee deliberates succession plan of
the officer and of the president, the officer compensation and others, aiming toensure the objectivity and transparency regarding these matters.
Recently, in 2017 the new President was appointed based on the succession
plan. In 2019, according to our policy that the Outside Officers with different
knowledge and backgrounds are selected, a candidate for female Director was
selected, and the officer’s compensation system was partially revised
to strengthen the linkage with
Nomination/Compensation Committee 7 directors
performance. These were resolved at
the General Meeting of Shareholders
or the Board of Directors after the
In-house Outside
Chairman:
Outside Director
As of June 27, 2019deliberation at the Committee.

● Audit & Supervisory Board

Full-time auditors attend the meetings such as

Audit & Supervisory Board and each its member

Management Committee which decides major businessauditor collect information about management undermatters, and they report information obtained from thesestatutory investigation authority and report and express

audit activities to the non-Full-time and outside auditors.

their views to the board meetings and the management

We strengthen our audit function by appointing anfrom an independent and objective standpoint as a

assistant staff to the auditors who is dependent of

fiduciary to shareholders.

management.

Auditors ensure coordination with internal audit
department through regular meetings, and report the

At present, the Audit & Supervisory Board consists of 6
members (3 members are outside and independent).

policy, plan and result of auditing to the board regularly.

Effectiveness of the Board of Directors evaluation
In every year since the fiscal 2015, we have been working on analyzing
and evaluating the effectiveness of the Board of Directors for the purpose of
improving the function of the Board of Directors, through a continuous
process. Through the process, the necessary measures are taken in order toimprove or further strengthen the issues reported through the verification on
the suitability of the function as the Board of Directors.
Since fiscal 2017, in addition to have a questionnaires for all the membersof the Board of Directors and the Audit & Supervisory Board members, anindividual interview was conducted by the Chairman, for the purpose of adeeper understanding of the response to the questionnaires. Thus more
substantive analysis and evaluation were implemented.

Evaluation items on the effectiveness of
the Board of Directors-E ffectiveness of the Board of Directors.
 anagement of the Board of Directors.
-M-S ystem related to support and cooperation with theOutside Officers.
 oles and expectation for the Audit & Supervisory Board-R
Members.
-R elationship with the shareholders and other stakeholders.
 thers-O(The Board of Directors in general, individual and peer
evaluation, Responsibility of the Board of Directors)

FY 2018 Flow of the Board of Directors effectiveness evaluation.
Sept.
Questionnaire

Implementation of
the anonymousquestionnaire.

Oct.
Individualquestionnaires by
the Chairman
Implemented fromFY 2017, aiming at a
deeper understandingof the responses tothe questionnaire.

Nov.

Multiple
Discussions
by the Board of
Directors

Outside officers
Meeting
Compilation of theopinions on the resultsof the questionnaire.

Business Operation

34

Nov. to Jan.

Confirmation of thestatus of ensuring theeffectiveness of theBoard of Directors.

Jan.

Next FY

Completion of
the analysis
and evaluation
Publish the analysis
and evaluation
results.

The Businessexecution and the
management of theBoard of Directors
based on the actions.

Our business consists of 14 business divisions, andPresident is responsible for management of our whole

General Managers of each division are responsible forbusiness operation as a chief executive under the board’s

leading each business operation including subsidiaries

oversight.

and affiliated companies management.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

GovernanceWe also appoint General Managers of Communications

Electric Group Philosophy” and the “Furukawa Electric

Solutions Division, Energy Infrastructure Division,

Group CSR Code of Conduct”, we, with the President

Electronics & Automotive Systems Division andassuming the highest responsibility, promote compliance

Functional Products Division in order to supervise closely

activities including in-house education and efforts torelated business divisions.

prevent and detect legal violations through our CSR and

In addition, we appoint General Manager of Global

Risk Management Committee, which is under theMarketing Sales Division that are responsible for our

immediate control of the Board of Directors, and thegroup’s sales and marketing entirely, and General

Administration & CSR Division. We also have an InternalManagers of Corporate Divisions that are responsible for

Reporting System for the early detection and correction

planning group strategy and assisting operation.

of compliance violations, and establish a system not to

These officers are members of the Management
Committee, which is the highest decision-making body ofbusiness operation.

treat the person unfavorably because of reporting.
3) Risk Management System
We have established our risk management system andManagement Committee deliberates and determines

management method in the “Basic Regulations on Risk

major operational matters. Further, their business affairs

Management and Internal Control”. In addition, we haveand operation are quarterly reported to the Committee toestablished a system in which the CSR and Risk

foster common understanding of company business

Management Committee, chaired by the President,

among them and integrated business operation as agrasps an overall picture of the risks associated with thewhole.

business operations of Furukawa Electric Group and

These business affairs and operation are also quarterly
reported to the board.

Process of Determining Officers’ Compensation
and Avoiding Conflict of Interests

determines effective methods for evaluating andmanaging these risks.
4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in complianceA t F u r u k a w a E l e c t r i c , t h e p o l i c y o n o ff i c e r s ’with prevailing laws and internal rules. With respect to othercompensation and details of each officer's compensation

information related to our operations, the Information

are determined by the Nominating/Compensation

Security Committee establishes uniform standards andCommittee consisted the majority of the committee

operates an information management system.

comprising outside directors, based on the delegation

5) Group Company Managementfrom the Board of Directors in order to ensure objectivity
and transparency of the decision-making process.
In addition, in the case where Directors conduct

In accordance with the “Regulations on GroupManagement Control”, administrative managers of individual
subsidiaries shall be appointed, and they shall require own

transactions involving a conflict of interests, they must be

subsidiaries reporting subsidiaries’ business conditions on a

based on approval at the Board of Directors’ meeting as

regular basis, and offer management guidance torequired by law.

subsidiaries. Predetermined matters shall require approval

Reinforcing Internal Controls

budgets for single fiscal years, risk management, andFurukawa Electric establishes, develops and operates
its internal controls based on the following principles:
1) Efficient Execution of Responsibilities

of us. We also carry out a mid-term management plan andcompliance as Furukawa Electric Group.
6) Securing Appropriateness of Financial Reporting
Based on the “Basic Regulations on Risk Management

After setting concrete management goals for theand Internal Control”, we will establish the “Furukawa

mid-term management plan and over the course of theElectric Group Basic Philosophy for the development andfiscal year, all those responsible for operational

evaluation of an internal control system, to ensure theperformance execute their responsibilities toward

appropriateness of financial reporting (J-SOX Core

achieving these goals and regularly report their progress

Policies)”. At the same time, the system andto the Board of Directors.

responsibilities shall be clarified for the system’s2) Compliance Systemconstruction, development, operation, and monitoring.

Upholding the basic philosophy of compliance withethics and prevailing laws as laid out in the “Furukawa
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201935

Directors and Audit & Supervisory Board Members (as of June 27, 2019)

Akihiro Fukunaga

Director
Corporate Vice President
General Manager, Finance & Global Management Division

Satoshi Miyamoto

Director
Corporate Senior Vice President
General Manager, Administration & CSR Division

Ken MakiDirector
Corporate Vice President
General Manager, Strategy Division

Yoshiro Miyokawa
Director(Outside, part-time)36

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Hiroyuki Ogiwara

Representative Director
Corporate Senior Executive Vice President
Chief of Transformation Division

Osamu Kuroda

Director
Corporate Senior Vice President
General Manager, Global Marketing Sales Division

Osamu Tsukamoto
Director(Outside, part-time)

Keiichi Kobayashi
President (Representative)GovernanceNozomu Amano

Audit & Supervisory Board Member(Full-time)

Yoshiaki Mizota

Takahiro Kashiwagi

Audit & Supervisory Board Member(Full-time)

Mitsuyoshi Shibata
Chairman of the Board

Takashi Tsukamoto

Audit & Supervisory Board Member(Full-time)

Yuzuru Fujita

Audit & Supervisory Board Member(Outside, part-time)

Sumitaka Fujita
Director(Outside, part-time)

Audit & Supervisory Board Member(Outside, part-time)

Akira Nakamoto
Director(Outside, part-time)

Kunihiko Sakai

Audit & Supervisory Board Member(Outside, part-time)

Yukiko Yabu

Director(Outside, part-time)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201937

Interactions of the Stakeholders with
Furukawa Electric Group

Globalenvironment

Customers

The Group s triv es f or be t ter communica tions withstakeholders in various areas and for an appropriate monitoring

Local
communities

of its business activities, then to work to solve social issues
such as SDGs, and to fulfill the corporate responsibilities.

Global environment
The Group has been dealing with not only its own renewableenergy, its energy conservation and its biodiversity, but also
cooperating with the government affiliated requests for theenvironment related business participation or the surveys,
cooperating with the customers’ environmental activities and theenvironmental conservation activities through the value chains.
Through these activities, we are implementing the climatechange countermeasures, the energy conservation, the sustaina
ble resource recycling and the chemical substance management.

Customers
The Group conducts better communication through dialogues
with the customers in daily transactions, the dispatch of
information using the websites of the Group companies anddialogues at the technology exhibitions and the trade shows.
The quality maintenance and improvement of the products,
the operation and the service are preconditions for the businessexecution, in addition, we are contributing to the customers’
business solution by providing the socially useful products andservices using our wide range of technologies and know-how.

Business
partners

Furukawa
ElectricGroup
Shareholders,
Investors

Employees

Renewable energy ratio

17%

Within the electricity used in thedomestic group, the renewableenergy such as the hydroelectric
power is at a high rate of 17%. (Refer
to Page 66)

Related SDGs

“Automotive Engineering Exposition
2019 Yokohama” 2,356 visitors

Related SDGs
At the exhibition “Automotive
Engineering Exposition 2019
Yokohama” at Pacifico Yokohama fromMay 22, 2019, we have introduced ourtechnology to 2,356 or more visitors.

Partner assessment

Business partners
In the Group, we call our business suppliers as the“Partners” to collaborate the value creation. The annual
partners meeting, dialogues in daily transaction, the CSR
questionnaire and the feedback interviews for the partner
assessment results are held to ensure good communication.
Based on the “CSR Deployment Guideline for Business
Partners”, we are promoting the fair transactions in compliancewith the laws and regulations and to build the healthy
relationships.

38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

213 companies

Related SDGs
The results of fiscal 2018 partner
assessment were fed back among
213 companies. (Refer to page 48)

Governance

SDGs (Sustainable Development Goals)
Regarding the social issues that were adopted by the United
Nations in 2015 as international common goals to be solved by 2030,
it consists of 17 Goals and 169 targets.
Also in Japan, actions are being taken it at the government level
and in many companies and organizations.

Shareholders andInvestors
The general shareholders meeting is well placed as animportant occasion for the direct dialogues with theshareholders. We also hold the financial results briefing and the
mid-term management plan briefing for the institutional
investors and the securities analysts. Furthermore, we conduct
tours such as a plant tour for the individual shareholders.
Through these dialogues, we will carry out the disclosure of
appropriate information at the appropriate time and makeefforts to improve the value of the Group.

Employees
Information distribution from the Group’s management to theemployees is implemented through avenues such as the Group
newsletters, the in-house magazine and the intranets. And as a
two-way dialogue, the management briefing and the “Dialogue
with the President” are carried out at each plant and office.
Through these information distributions and dialogues, inaddition to dealing with the operational issues, we arepromoting actions to health issues including the mental healthand the occupational health and safety, to the human resource
development and the fair evaluation, to the variety of working
styles and to support for the balancing of work and life.

Tour for individual shareholders

40 participants

Related SDGs
In the plant tour for individual
shareholders in fiscal 2018, 40 individual shareholders visited Yokohama
Works. (Refer to page 50)

Health and Productivity Stock Selection2019 Recognized for the first time

Related SDGs

The Company was recognized by
the “Health and Productivity Stock
Selection 2019” for the first time.
(Refer to page 30)

Nikko Waraku Odori Dance Festival

Local communities
The Group has been conducting factory tours, contributing
to the sports and the traditional events, the co-sponsorship,collaboration and co-working with local NPOs and Satoyama,“village forest” conservation initiative with the local
communities.
Through these activities, we are promoting the nextgeneration development, the sports and the culture promotion
and the natural environment protection, and living in harmony
with local communities.

105 years

Related SDGs
In Nikko Works, in August of every
year, with the participation of the local
people, Nikko Waraku Orodi Dance
Festival has been held. It started in
1914, and 2018 is the 105th year.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201939

CSR Management
Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line with the following Group basic policy.
In order to follow in conducting corporate activities based on Furukawa Electric Group Philosophy and Core Value, the
CSR Code of Conduct defines fundamental rules of behavior for Furukawa Electric Group executives and employees fromthe perspective of corporate social responsibility.

Furukawa Electric Group Basic
Policy on CSR（Revised March, 2011）
Based on the Furukawa Electric Group
Corporate Philosophy,
・We will operate our businesses in harmony
with society and the environment andendeavor to create social value throughtechnological innovation, complying
with laws, social norms, and ethics as amember of the international community.
・We will strive to maintain and build soundand friendly relationships with all of
our stakeholders and contribute to thesustainable development of society.

Furukawa Electric Group CSR Code of Conduct（Revised April, 2019）
1. Human rights
 orking conditions and environment
2. W
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
 elations with customers, partners, and society
7. R
8. M
 anagement and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management and employees
CSR
https://www.furukawa.co.jp/en/csr/guideline/

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a sustainable

Furukawa Electric Group has established the CSR andsociety, we need to understand the social responsibilities

Risk Management Committee, which comprises membersof Furukawa Electric Group and implement policies in lineof management, as the structure for supervising andwith the Basic CSR Policy. We will promote CSR

promoting CSR activities throughout Furukawa Electric

initiatives alongside our business activities so that eachGroup, including risk management, internal control,and every Group employee is able to take the lead incompliance and social contribution. We have set up the

putting CSR initiatives into practice.

CSR Department within our Administration & CSR
Division. This department

Promotion Framework

promotes CSR by facilitating

Board of Directors

communication among various
committees and corporate

Submit proposals and reports
CSR and
Risk Management
Committee

Committee chair: President
Committee members: Management
Organizer: General Manager,
CSR Department

President

Furukawa Electric Group
Quality Management Committee

Collaborate

Furukawa Electric Group
Environment Committee
Central Disaster Prevention
and Business Continuity
Management Promotion Committee

Other corporate
divisions

Administration &CSR Division

Furukawa Electric Group Occupational
Health and Safety Committee

CSR Department

Monitoring

Collaborate

Promotion / Support

other

Business divisions (internal + Group companies)

40

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Each corporate
department

departments.

GovernanceTargets and Results (Risk Management / Internal Controls / Compliance)

Achieved

FY 2018
Targets

Enhancement of the compliancefunctions associated with the global
business expansion- Implementation of the compliancerelated education in the overseas
high risk area

Strengthening overseas risk
management
 xtension of the overseas emergency-E
response manualStrengthening the cyber security
countermeasures- Implementation of the emergency
response training based on theactivity policy of the “Furukawa
Electric CSIRT (note) ”.

Partially achieved

Not achieved

FY 2019
Results

Achievement- In Philippines and 3 cities in China,
compliance educations for the groupcompany staffs were conducted.

 ormulated the countermeasure-F
manual in the event of overseas
terrorism, etc.

- The cyber incidents countermeasuretraining was implemented bymembers in Furukawa Electric
CSIRT and in headquarter divisions.

Targets

Enhancement of the compliancefunctions- Implementation of the complianceeducations in overseas high-risk
areasStrengthening the overseas risk
management-E xpansion of the manuals forcountermeasures on emergencies inoverseas areas

Strengthening the cyber security
countermeasures- Strengthening the cooperation in
the occurrence of cyber incidents andstrengthening the countermeasureprocess for normal times.

(note) CSIRT:The abbreviation of “Computer Security Incident Response Team”.
The team is prepared to cope with the occurrence of cyber incidents.

Message fromthe General Managers

By promoting the CSR Code of Conduct revised in this spring,
we will promote CSR activities in accordancewith the basic policy.
Yasuhiro Yonezawa
General Manager, CSR Department,
Administration & CSR Division

Furukawa Electric group has been conducting global
businesses. As the business environment changes more andmore rapidly, it is necessary to steadily fulfill the responsibility
to the stakeholders while adapting changes being aware ofvarious stakeholders. Under these circumstances, the CSR
activities are an important foundation for the business growth
and the continuation of Furukawa Electric Group. Based on

our Group Philosophy, Furukawa Electric Group has
established Basic Policy and Code of Conduct regarding the
CSR and has consolidated the promotional structure and themechanism. As the person in charge of the CSR department, I
will continue to promote the CSR activities by strictly observing
these functions.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201941

Risk Management
Overview of the Risk Management and its Structure
Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define
important risks that require a companywide response and prioritize measures to counter these risks. Through specializedcommittee activities in segment-specific areas—environment, quality, safety, disaster prevention—we are working tomanage the risks that relate to our business activities.
Important Companywide Risks

In the event a large-scale disaster occurs or other such risk

• Compliancematerializes, Furukawa Electric Group will establish Emergency• Quality control

Response Headquarters, headed by the president, and Site Response arge-scale disasters, such as earthquakes•L

Headquarters that defines each department's roles and clarifies them

• Information security

ahead of time. We also conduct regular exercises on preparing initial• Affiliated company controls

action manuals, stockpiling necessary supplies, and setting up
communication structures and systems to confirm people's safety.

BCM (Business Continuity Management) activities

sectors in the disaster area and the Emergency Response[Promotion in obtaining ISO certification]

Headquarter and the marketing sectors in the head office.

In order to strengthen the business continuity activities,

Being restricted in communication between the disasterwe are actively working to obtain ISO22301 certification,area and the head office only by a mobile phone prioritized

the international standard for the business continuity

in disaster, and we had a simulated experience of the

management systems (BCMS). In addition to the alreadydifficulty in the initial response in the event of a disaster.

certified “laser diode products business” (Chiba Works)

Based on the issues revealed from in the exercise, we willand “copper wire products business” (Mie Works) andstrive to further strengthening the resilience for the“copper winding products business for motor” (Mieimportant business continuity by promoting manualWorks), in fiscal 2018, the “copper and copper alloy

development and education by functions that are aware

products (the original products) business” (Nikko Works)of the collaborations between departments.

obtained the certification.

Exercise simulating a large-scale earthquake (Nikko Works)[Joint training between the head office (Emergency
Response Headquarter) and the site office (disaster area)]

When a site office suffers severe damages due to a42

A scene of theexercise in thedisaster site.

Only a mobile phoneprioritized in disaster isallowed for individual
communication.

A scene of theexercise in thehead office.

natural disaster, it is necessary that the entire company[Disaster headquarters training at the Head Office]works as a whole for early business recovery by closely

In the Emergency Response Headquarter training for

coordinating the Emergency Response Headquarter at

the head office employees, after the safety confirming callthe headquarter and at the site office where is the disastertraining in the initial response training, the industrial doctor

area. For the preparation of this incident, we conduct in

conducted a sanitary lectures on triage and others, also

every year a joint training between the head office

the training on how to use AED, training on a hand-held(Emergency Response Headquarter) and the site office (aradio for disaster prevention stockpiles and small

disaster area). In fiscal 2018, simulating that Mie Works

generator operation were carried out. In the 4th Walking

was damaged by a major earthquake, the initial responseHome Training, starting at the head office, we actually

exercise was conducted in the role-playing form by thewalked along 4 routes (destination: Shinjuku station, Ueno

cooperation of the task force and the manufacturing

station, Gotanda station and Kinshicho station) and

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Governanceidentified the dangerous places at the time of disaster,
respectively. From the participants we received follow-up
feedback. “The safer route could be identified.” “The early
identification of the shelter point and the restroom location

thorough compliance at each company.

Intellectual Property Risks
The Company aims to stabilize the management by

are necessary.”

strategically creating the intellectual property rights based

Information Security

in the other companies, also by decreasing the intellectual

Information security is considered one of the highest

on the patent portfolio management that grasps the trends
property risks.

priority risks Furukawa Electric Group has to handle.

The intellectual property risks are divided into four

Therefore we promote various countermeasures throughcategories: “Rights infringement risks”, “Counterfeit

intergroup collaboration by exchanging information amongproducts risks”, “Contract risks” and “Technology leakage

the related divisions, from the perspectives of protecting

risks” and continuously arousing risk responses. For

information systems and intellectual property as well as

example, against the “Technology leakage risks”, theinformation management.

following measures are taken: “Technology concealment[Cyber security]of the development site and the production site”,

In response to the cyber security risks that are becoming
more sophisticated and serious year after year, from the“Information maintenance strengthening with the timestamp system”, etc.

end of fiscal 2017, we have been implementing theWe also develop the intellectual risk reduction activity inactivities of the “Cyber Security Special Committee”

Furukawa Electric group globally, based on theconsisting of the departments operating the mission-

implementation of the systematic training of Furukawa

critical tasks and of the activities of the “Furukawa ElectricElectric Group in domestically and internationally, the” to respond quickly in the event of incident

regular issuance of the newsletters introducing efforts tooccurrence. In the last year, the Cyber Security Expert

reduce intellectual property risks, by the President’Group compiled a manual by summarizing the results ofawards for excellent inventions and activities, etc.

CSIRT

(note 1)the discussions on the cyber security responses, andconducted the exercise simulating the occurrence of theincidents and reflecting the outcome in the issues andknowledge in the cyber security response manual.

Organizational structure on cyber security
CSR and Risk Management Committee

Furukawa Electric CSIRT was registered with the Nippon

Central Disaster Prevention and Business Continuity
Management Promotion Committee

CSIRT Association in July of the last year, and we are

Special committee on cyber security

striving to maintain and to improve the cyber security by
quickly responding to our large and small incidents. In

Furukawa Electric CSIRTCSR Department

ICT Strategy
Planning Department

IT Maintenance andOperation Department

fiscal 2018, business email frauds, which attemptedmoney fraud by sending fake emails pretending to be abusiness partner, frequently occurred. Then attention wasgiven to domestic and to overseas affiliates, and thethorough awareness of the preventive measures was
confirmed with each affiliate.
[Private information protection]
With the enforcement of GDPR (European General Data
Protection Regulation) (note 2) the personal information
holding status in each company of the Group was
confirmed and the protection measures for the personal(note 1) C
 SIRT: The abbreviation of “Computer Security Incident Response Team”.
The team is prepared to cope with the occurrence of cyber incidents.
(note 2) G
 DPR (European General Data Protection Regulation)
The law in the EU on the private information protection was enforced in May
2018. Emphasizing the basic human rights of individuals, and established tostrengthen the protection of the personal data for all individuals (citizens andresidents) in the EU. Stipulating the processing and transfer of the personaldata, the provisions for the application of non-EU and high fines for violation
are set.
 EA: European Economic Area. The EU 28 countries and Norway, Iceland(note 3) E
and Lichtenstein.

Challenges and Future Policy
Following our international business development, risks

information was reviewed. Even companies outside thethat Furukawa Electric Group faces are becoming more

EEA (note 3) may be subjected to the GDPR, if the company

diversified and complicated each year. We particularly

has personal data. In order to comply with the GDPR, therecognize that risks inherent in overseas operations―

CSR Department and Legal Department worked together

mainly in emerging countries―and risks from the supply

to determine the correspondence matters to bechain standpoint are our top priority issues, and we will be

implemented by each group company and to ensure

strengthening our countermeasures against them.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201943

Compliance
Basic Approach

Electric Group employees and take many opportunities

Furukawa Electric Group regards compliance as “notto make use of it. We conduct compliance education for

only observing laws and regulations, but also as acting in

employees at every level of the Company, from newaccordance with the values and ethics required of therecruits to directors. At the same time, we hold theme-

company and its employees as responsible members of

based group training and e-learning courses, andsociety”. Each and every employee is encouraged to

conduct groupwide compliance education.

perform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Education Results (FY 2018)“speak” and “rectify”.

Course Name

Three Musts for Compliance Activities

Speak
Be awareHierarchybased
education(note 1)

Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?
・Does this run counter to society's

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

6

Training for
managers

Newly appointed
managers

69

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

53

Training for new
employees

New employees

104 (note 2)Competition laws and anti-bribery
regulations

541

Subcontractor Law

532

Security trade control

1,125(note 1) In hierarchy-based education, manager training and new employee training
includes education on human rights.
(note 2) Participants apply to Furukawa Electric only.

requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.

Initiatives in Compliance Months
Furukawa Electric Group has designated October and3) Rectify

November as Compliance Months, during which we

・As soon as you become aware of it, fix it.

implement measures aimed at tackling the variety of・Always improve.

compliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2018 Compliance Months
Main Initiatives at Furukawa Electric

Training and Raising Awareness among
Employees
We conduct a host of training and awareness activities

1C onduct workplace self-checks according tosection-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act

in the aim of instilling compliance awareness among all3) Subcontracting transactions, 4) Occupational safety

employees.

5) Asset protection, 6) Information security
2 Conduct workplace meetings

Compliance Education
Our primary shared educational materials are the
Furukawa Electric Group CSR Code of Conduct and its
corresponding Furukawa Electric Group CSR ComplianceHandbook. We distribute this handbook to Furukawa

44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

3 Courses on competition laws and anti-bribery regulations4S
 ubmission of Compliance Pledge (for assistantmanagers, managers and above)

Governance

Employee Compliance Awareness Surveys

Anti-Bribery

We h a v e b i a n n u a l l y c o n t i n u e d t o i m p l e m e n t

In 2012, the “Furukawa Electric Group Anti-Bribery

compliance awareness surveys at Furukawa Electric andStatement” was formulated, and the “Furukawa Electricaffiliates in Japan. Designed to gauge employee

Group Anti-Bribery Guide” was published in the same year

awareness and understanding of compliance, these(Revised to the 2nd edition in May, 2018). Based on this,surveys aim to encourage recognition of compliance.

the activities aiming at establishing the bribery risk

Feedback is given on the results of the survey to ourmanagement system for the entire group are implemented.

Group companies and Furukawa Electric divisions, andthe results are used to make proposals for compliancemeasures at each organization. In fiscal 2018, as in fiscal
2016, we conducted compliance awareness survey
based on CSR Code of Conduct.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal acts.
The Company has in place an internal reporting desk aswell as an external reporting desk that makes use ofoutside third-party institutions (the Furukawa ElectricGroup Hotline), both of which allow employees to makeOverseas compliance seminar
From fiscal 2014, we started to conduct grouptype compliance seminar focused on competition
law and anti-bribery taking account of local laws
and customs. By fiscal 2015, we held the seminar in
China. In fiscal 2016 we held it in Thailand and in
fiscal 2017 in Indonesia. In fiscal 2018, the seminar
was held in China (Tianjin, Shenzhen and Shanghai)
and Philippines. 228 people from 23 companies
participated, mainly local sales people andpurchasing people of the local companies. The local
lawyers gave lectures in the local languages anddiscussions on compliance were carried out.

reports anonymously. An internal reporting secretariat
manages the content of such reports stringently, taking
ample care to prevent people making such reports from
suffering any negative impacts, looking into issues swiftly
and taking appropriate action. In fiscal 2016, we newly
set up external reporting desks for oversea affiliates,
preparing the environment easy to use them.

Security Trade Control
Furukawa Electric Group considers security trade control
to be one of its most important responsibilities as acompany with global business operations. In accordancewith the laws and regulations that make up the internationalframework on security trade control (the export control
regime), we have improved and strengthened ourmanagement systems for goods and technology that canbe converted to weapons or military uses.

Challenges and Future Policy
Regarding the various legal compliance measures wehave taken to date, we recognize as a Group that our

In exporting products and providing technology, wetask is to expand the scope of participation of Group

conduct transaction screenings based on eachcompanies. Going forward, we will try to raise compliancecompany’s Security Trade Control Regulation to ensure

awareness by focusing on more effective education

compliance with relevant legislation and are careful tocontent with a Group perspective and enhancing its global

prevent circumvent to countries of concern.

implementation system. We will also hold more com
pliance seminars taking account of local laws, languages
and customs, encouraging individual initiative under theslogan “Think and conduct compliance together”.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201945

SocialRelations with Our Customers
Basic Approach
Each of the Company’s divisions has acquired ISO 9001 certification. We have been contributing to the society byintroducing the processes of ISO9001, and constantly striving to improve quality by standardizing operations in order toprovide good products and services from the customers’ prospects.
Going forward, we will continue endeavoring to further enhance “quality power” throughout Furukawa Electric Group by
developing products that are attractive to our customers, based on a policy of Group-focused management.

Quality Management Policy
At every stage of our operations, from research and development to manufacturing, sales, customer service
and management, in all sections and all hierarchies, we always strive to adhere to a PDCA management cycle
based on actual facts, maintain and improve our products, customer services and the quality of our operations
and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at Furukawa Electric Group level. Directed by thiscommittee, Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or
improve the quality of our products, customer services and operations.

Promotion Framework

President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager, Quality
Promotion Department

Chair : General Manager of the
MONOZUKURI Innovation Division
Members :Quality Promotion Department
Divisional Representative Quality
Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY 2018

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%-Rfrom fiscal 201746

Partially achieved

Not achieved

FY 2019
Results- The expansion of the Quality
Strengthening Project activities within thedivisions were conducted.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Achievement

Targets

Committed to achieving thequality expected by customers!
 educe “failure costs” by 10%- R
from fiscal 2018

SocialQuality Strengthening Project

Risk Free Design (RFD) Project

The “Quality Strengthening Project”, that has been

In order to achieve the quality expected by customers,

underway for five years, sets the important themes

it is important to identify problems at the design andrelated to the “failure costs” in each business divisiondevelopment stage and to take appropriate measures(including the supervisory affiliates) and the improvement

before starting the production.

is promoted by the team activities.

In this project, we are working to improve the ability in

In fiscal 2018, “Problem Solving Process Guidelines” asidentifying problems and in solving it by the designinga guide for project activities was revised to be moreand developing engineers, also improving the process forpractical, and along it improvements were promoted.

its effective implementation.

At the end of the fiscal year, as an event of the Group,

In fiscal 2018, its second year, the frequency of thethe Activities Reporting Meeting was held to share theworkshop for the ability improvement was increased,

improvement case examples in all business divisions.

aiming to spread this concept to many designing anddeveloping engineers. In addition, we have started to
improve the process in accordance with the “Guidelines
for Design, Development and Changed Processes”,
established in the 1st year.

Activities Reporting Meeting -Poster sessionWorkshop

Issues and the future policy
In order to achieve the quality expected by customers, two projects will be continuing.
In the “Quality Strengthening Project”, the quality improvement activities emphasizing the problem solving process are in
progress. The activities, for further understanding and for enhancement of the application of the problem solving process,will be promoted.
The “Risk Free Design (RFD) Project” is planning to start the workshop in all business divisions this year. In addition, theprocess in accordance with the “Guidelines for Design, Development and Changed Processes” will be improved.
And, in light of the recent quality irregularities in Japan’s manufacturing industry, Furukawa Electric Group will continue tostrengthen “quality compliance” and “quality governance” by setting “guidelines” which prescribed what shall be followed.

Message fromthe General Managers

In order to “achieve the quality expected by customers”,
we will make continuous improvement in all processes.
Kazuhisa Kashihara
General Manager, Quality Promotion Department,
MONOZUKURI Innovation Division
In light of many press reports related to the quality
irregularities in other companies, we will promote the quality
improvement activities on the major premise of the quality
compliance. On top of that, everyone will be concerned with
the quality expected by customers and promote the activity toachieve them.

In fiscal 2019, while strengthen the quality governance suchas clarifying the implementation items in the shipping process,and continuing to promote quality improvement measures
including the two projects shown in this page, we aim toachieve the quality expected by customers.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201947

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric Group procurement policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis. By purchasing at low prices and entering long term contracts based on
proactively reviewing the material specifications, we promote the stable and continuous optimal purchasing.

Furukawa Electric Group Procurement Policy
We will realize the optimal procurement for Furukawa Electric Group through global partnerships by:
1. Conducting CSR activities and full compliance in purchasing
2. Building strategic relationships with business partners aimed at stable and continuous optimum purchasing
3. Expanding Group and global procurement
4. Constructing BCM for stable procurement and purchasing of raw materials, materials and parts
5. Promoting continuous cost reduction activities in line with business strategy

Conducting Training on Subcontracting Transactions

we are continuing to deal with the cost reductions, CO2

In order to forge sound relationships with business

reductions during procurements, and “the risks of thepartners through fair transactions that comply with rules

soaring logistics costs and becoming difficult to transport”.

and regulations, Furukawa Electric Group provides

In fiscal 2018, we evaluated some 213 business partners

training for employees on subcontracting transactions. In

and provided feedback to them. Furthermore, based on

fiscal 2018, the training courses which have been

the results of the assessment and our own experiences

previously conducted and the employee education which

during the suspended production that resulted from snow

newly incorporates e-learning were conducted, and wedamage at our Nikko Works, we requested ongoingaimed to make thoroughly known the contents of the Act

cooperation from certain business partners on businessagainst Delay in Payment of Subcontract Proceeds, Etc.

continuity and stable supply initiatives.

to Subcontractors.

Partners Meeting and Partners Evaluation Scheme

We are promoting the ESG procurement activities inFurukawa Electric seeks to deepen awareness among

mindful of the “Environment” and the “Social” issues.

our business partners through regularly held Partners

Based on our CSR Deployment Guideline for BusinessMeeting, where we explain the state of the Company, ourPartners, we engage in procurement activities with “fullprocurement policy and individual company management

legal compliance and fair trading practices”, “considestrategies. For fiscal 2018, this meeting was held in Juneration for human rights, safety and the environment”,

and was attended by 57 main business partners. In“reduction of an environmental impact” and “elimination

addition to the existing “Excellent Partner Awards”, weof conflict minerals”. We are also continually providing

have established the “Group Global Partner Awards” andencouragement at partners meeting by explaining thepromoting the activities mindful of the group global

state of our efforts to our business partners, asking forprocurement. We also evaluate main business partners

their cooperation with our activities, and so on.

on the basis of quality, technology, price, delivery system,

48

Promoting CSR in procurement activities

degree of social contribution and credit condition, andValue chain BCM (Business Continuity Management)

then, we provide feedback on our findings, in partners

Furukawa Electric conducts regular questionnairemeeting. In addition, we discuss the results of our evalu

surveys on its main partners about their BCM measures.

ations with them to more closely align our awareness of

In fiscal 2018, we held questionnaire surveys for main

procurement activities. As part of that, we accelerated thepartners and placed the results we received from ouractivities of Procurement Logistics in fiscal 2018. By selec

business partners onto a database. In this way, we haveting the best means of the transportation within the value

become able to quickly identify which partners are mostly

chain, such as the effective use of the returning vehicles,

likely to be affected during a natural disaster.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

SocialConflict Minerals (note)

Challenges and Future Policy

Regarding the action associated with the conflict

We want to fully grasp the state of our CSR activities

minerals, we have established the group policy as a part

along the value chain by regularly asking our partners toof compliance activities of RBA (Responsible Businesscomplete a questionnaire on their understanding of ourAlliance) Code of Conduct, in the “Responsible Mineral

CSR Deployment Guideline for Business Partners. We will

Procurement Initiatives” and making efforts to inform thealso seek to deepen BCM by giving encouragement togroup companies and the business partners.

partners based on the results of our BCM questionnaire

In fiscal 2018, we continued the surveys on the usage

and manufacturing site survey, with the aim of improving

status of the conflict minerals for the main products ofcrisis response levels along the entire value chain.

Furukawa Electric and the group companies. At the same

Internally, during group training held at the Procurement

time, we are actively promoting the procurement from the

Department, we have held exercise and seminars on thesmelters certified by the RBA conflict-free smelter program.

handling of BCM in order to raise our awareness. In

Going forward, in addition to requesting the coopera-

addition, we are implementing the work style reformtion of group companies and our business partners in thethrough the RPA (Robotic Process Automation) and also

responsible sourcing of minerals, we will work with themaking efforts to reduce internal risks through theJapan Electronics and Information Industries Association

standardization and duplication of the procurement(JEITA), an industry organization, on initiatives targeting

operations.

the responsible sourcing of minerals.
(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

Targets and Results (Procurement)

Achieved
FY 2017

Partially achieved

Not achieved

FY 2018

Targets

Results

Strengthen strategic relationships withpartners-O ngoing implementation of the partner
assessment system and utilization of
feedback discussions-P romote awareness of CSR Deployment
Guidelines among partners
 xamination and implementation of-Emeasures to strengthen the value chain
by utilizing BCM questionnaire surveys
and site surveys results-C arry out conflict minerals survey (data
update survey)-C onducted partner evaluationsof about 213 main partners andheld partners meeting- Introduce our CSR Deployment
Guideline by procurement
system online-R eviewed and increased thenumber of supply points (andsometimes recommended tohold inventory) for important
products- A conflict materials surveys(data update surveys) was done

Achievement

Targets

Strengthen strategic relationships
with partners-C ontinue partner evaluation system-C ontinue to inform partners about
CSR Deployment Guidelines
 ommunication with partners with-C
a view to strengthening the Value
chain based on the results of BCM
questionnaire surveys-C onflict minerals survey (data update survey)-P romotion of the strategic “Purchasing
process” activities in consideration of
the value chain.

Message fromthe General Managers

We will strive to achieve mutual understanding
with our business partners and take further steps to strengthen
our supply chain.
Kazuhiro Takamatsu
General Manager, Procurement Department,
MONOZUKURI Innovation Division

Ever since its foundation, Furukawa Electric has stayed inbusiness by partners with social infrastructure and contributing
to society as a partner of products. However, our success is
not just the result of hard works at our company. It is also
thanks to the steady delivery by our partners of the raw
materials we use to create products.
In the future, our business environment is likely to changeeven more rapidly. Under these circumstances, we will need tostrengthen our value chains further in order to continue
contributing to society. We intend to use a partners meetinga n d p a r t n e r s a s s e s s m e n t s t o impro v e t h e mu t u a lunderstanding we have with our partners, and to continue
contributing to society through measures such as thepromotion of CSR activities and strengthening of BCM.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201949

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR requiresthat Furukawa Electric Group seeks to improve upon thesound, friendly relationships we maintain with all of our
stakeholders. Our Own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information
at the appropriate time.
Based on this policy, all IR activities are conducted by
the Investor & Public Relations Department and overseenby the director in charge of IR, who is General Managerof the Finance & Global Management Division.

Relations with Institutional Investors and Securities Analysts
In addition to holding management briefings (coveringinterim and year-end results and mid-term plans when

Fun LabFeedback to the Management
The status of the shareholders and investors’ opinions
and concerns obtained from the dialogues through the
IR activities are regularly reported to the management
team and the board of directors.

Returning Profits to Shareholders

announced) for institutional investors and securities

Furukawa Electric aims for management emphasizing

analysts, we actively encourage communication all year

capital efficiency and has made the basic policy of its

round. In addition, we are striving to enhance thecapitalization strategy to balance strategic investment for

information disclosure, for example, the financial

growth, the cultivation of the next generation of newsummary and the financial results presentation materials

businesses, the improvement of the financial structure

are posted on the day of the announcement, and theand returns to shareholders.

Q&A record is posted on the day after the announcement,

Under this basic policy, in the “Furukawa G Plan

simultaneously in the Japanese version and in the2020,” the new mid-term management plan, we will

English version. And the video of the financial results

apply management resources prioritizing facility

briefing is made available on our website.

investment and R&D for profit expansion in focus
business areas (infrastructure / automobile markets) andthe creation of new businesses, strengthen the earning
capacity of our group and improve its financial structure,
all of which will support the sustained growth of ourgroup. With regard to returns to shareholders, we also
positions the continuation of stable dividends as one of

The progress of mid-term management plan briefing
for the institutional investors.

Relations with Individual Investors
In August 2018, we held our 11th plant tour for

Regarding the year-end dividend for the fiscal 2018
ended March 2019, based on the business result andothers for the current fiscal year, and 85 Yen per share
was paid as a year-end dividend.

individual investors. Visitors were selected by lottery from

Regarding the dividend for the fiscal 2019 ended Marchamong those who responded to an open invitation, with

2020, based on the comprehensive consideration on the

40 people invited to attend out of the 150 who

future business development and the return of the profit

responded. On the day, the participants could take partto the shareholders, we plan to pay a year-end dividend

to the technologies of Furukawa Electric, such as theof 85 Yen per share which is equal to the current term.

open laboratory Fun Lab® opened at Yokohama Worksin August 2016, and to the OneF Car implemented withthe technologies and the products of Furukawa ElectricGroup, etc.

50

the most important issues of management.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

The Issues and the Future Policies
We recognize that the issue is the strengthening of theinformation disclosure to the shareholders and to theSocialindividual investors in order to be able to have better

individual investors was newly planned, and we will also

understanding of the management strategy and theendeavor to disclose the information through our website.

business content of the Company. In this fiscal year, an

We will also continue to strengthen the dialogue with theonline company briefing for the shareholders and thedomestic and the international institutional investors.

Key Questions and Answers in the Recent Dialogues
Progress of the Mid-term Management Plan
The Group promotes the management activities
based on the five-year mid-term management plan,from FY2016 to FY2020, “Furukawa G Plan 2020”.
We recognize that the challenge to achieve themanagement target figures for FY2020 (operating
income of at least 55 billion yen, net income
attributable to owners of the parent company of atleast 30 billion yen, ROE of at least 10%), due to theuncertainty in the current market environment and aslowdown in the growth rate of the communications
business. We will continue to strengthen the focusedbusinesses and products and to transform the lowmargin businesses and products. In addition we willcontinue to strengthen the management structure to
be able to adjust with the changes in the environment
through such as the cost reduction through the
productivity improvement.

fiber and the cable businesses, together with theTransformation Division established in this April, we
are making efforts in the cost reduction through theglobal procurement and in the expansion of thestrengths in each manufacturing base.

About the Automotive Products Business
Recently, depreciation expenses have increased asa result of the advanced investments, and the current
mid-term management plan does not expect asignificant profit, but we expect a growth after FY2021,
when the full-scale mass production and thedepreciation expenses decrease are expected. We will
also aim at our growth in the area called CASE withthe prospect of significant market growth in the future:
we will offer our unique value proposition by integrating
various technologies which the Group developed in
the wide-ranging business areas.

About the Optical Fiber and the Cable Businesses

Capital Investments and R&D Expenses

Starting with the deterioration of the market
environment in China, due to the optical fibers, mostly
the general purposed fibers, overflowing from China
into Southeast Asia and Europe, the price has fallen
down. On the other hand, the orders in North America,
our main market region, are on a recovery trend. Whilestrengthening the sales expansion of the high-value
added products, for the further growth of the optical

I n t h e c u r re n t m i d - t e r m m a n a g e m e n t p l a n“Furukawa G Plan 2020”, we are expanding the growthinvestment focusing on the infrastructure andautomotive products segments for the future growth.
In FY2019, we will place more emphasis on the capital
investments for the productivity improvements and therationalization.

Message fromthe General Managers

We will continue to actively disclose information and to explain
the management and the business strategies and also its progress.
Mami Masuda
General Manager, Investor & Public Relations Department,
Finance & Global Management Division
The Company has been strengthening the IR activities overthe past several years, responding to the voices of theshareholders and the investors “The business content andearnings growth scenarios are difficult to understand due tothe wide business scope.”
Specifically, the business briefing has been held annually
since fiscal 2016, and the explanation materials has beenposted on the website. In addition, since fiscal 2018, we havebeen disclosing the video of the financial results briefing andthe mid-term management plan progress briefing, and thecontents of the Q&A, for a better understandings by theshareholders and the investors
We will continue to proactively disclose and explain theinformation, aiming to be a company that is trusted and is
expected to grow by everyone.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

51

Relations with Employees
Personnel Management

Human Resources Development

Personnel Management Policy

Enhancement of Education Program

We aim to be a creative and dynamic corporate group

In accordance with “Furukawa Electric Group Vision forby utilizing diverse human resources globally. It is

Our People”, we are training human resources who havefundamental to human resource management torich humanity and strong challenge spirit, for the sake ofcontinuously create personnel who can embody

our group development. The state of our leaders affects, core value andcorporate culture and reflects in our business results,

Furukawa Electric group philosophy(note)

contribute to strengthening competitiveness.

which is why we give training at each level to develop(note) Please refer to page 5 for “Furukawa Electric Group
Corporate Philosophy”.

leadership, and construct relationships between people
by “dialogue” among all our employees. We work hard to
instill a mind that is interested in people and respects

Medium-term policy

others.

In the 2020 Mid-term Management Plan, we set a
mission of pursuing diversity and initiative in order to

Nurturing Leaders Adapted to the Global Scene

continue growing in the global markets, improving our

We started our Global Business Leader (GBL) training in

a b i l i t y t o re s p o n d t o c h a n g e s i n t h e b u s i n e s s

2006 in order to develop personnel who will take on theenvironment, and realizing greater creativity androle of management in the future. Since fiscal 2013 thisexecution capabilities in our “people” and “organizations”.

has been reformed to Global Mindset Program (GMP), with

We will implement human resource management to

its extra emphasis on global human resource education.

support Furukawa Electric Group’s growth strategy

We have also operated a Global Development Program

through such as enhancement of HR function in Furukawa(GDP) for overseas local employees since 2010 with theElectric Group as a whole through penetration of

aim of strengthening links within Furukawa Electric,Group, the curriculum being partly shared with the GMP.

fosterage of employee’s voluntary initiative on their career

Furthermore, in fiscal 2014 we launched the Global

development, improvement of their motivation for

Challenge Program (GCP), which dispatches young

competency development.

employees to foreign countries. We are working to align(note) Please refer to page 31 for “Furukawa Electric Group
Vision for Our People” .

these various programs to develop human resources

Main measures contributing to the Group’s global
management

Global Human Resources Training System“Furukawa Electric Group Vision for Our People”(note)

1R
 ealization of “Successor Training Plan” and strategic
placement in important position within group2E
 arly selection of candidates and systematicdevelopment and arrangement, for the training of thenext generation of managers
3P enetration and establishment of “Furukawa ElectricGroup Vision for Our People”, promotion of careerdevelopment support and improvement of personnel
system for that purpose
4 Improvement of training curriculum and promotionof human resources exchange, overseas dispatch ofyoung employees
5 Acceleration of diversity management efforts
 romotion of productivity improvement and flexible
6P
working way through “work style reform”

who can play a dynamic role on the global stage.

Training global human resources
SP
Generalmanagers
Sectionmanagers
Data Base
Assistantmanagers
Recommend key
people in eachdepartment fortraining as
global humanresources

Global Business
LeaderGBL

FY 2006 –2012

Global Mindset
ProgramGlobal Development
Program

GMPGDP

FY 2013 –Diversity
Global Mind Set
Global Leadership
Business Situation(For local
employees)
Mini MBA・Accounting
・Strategy, etc.

Global Challenge
Program

GCP(Overseas
dispatching)

1. One FURUKAWA course
2. Frontier course (JICA)*) NS: abbreviation of “National Staff(Local employees)”52

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

FY 2010 –SocialProject to Improve GENBARYOKU Capabilities

Using Diverse Human Resources

From fiscal 2009, the training targeted for the

One of our Group’s management philosophies is toemployees in MONOZUKURI (manufacturing) site is“nurture human resources at every level, so that we cancarried out at each of our Plants. In fiscal 2018, training

become a more diverse and creative organization”. It is

was also provided for each class of workers fromessential for the progress of our Group’s global

freshmen to veterans. In addition, we hold the

management to create a corporate culture in which more

“MONOZUKURI training” targeting manufacturing staff

diverse personnel can succeed. In April 2014, we set up

from our Plants and domestic affiliates and the “alla Diversity Promotion Section, and are working on

employees participating special programs” at the major

various measures such as organizational mind fostering,

plants in many companies in Furukawa Electric Group.

women’s career formation support, promotion ofMore than 3,500 trainees participated in the site strengthautonomous work-life management, etc., aiming at

training. We are aiming to revitalize the “MONOZUKURI

building an environment where diverse human resources

power” of the workplace by utilizing the “sight strength”

can be active.

where each thinks and acts on its own.

Diversity & Inclusion Activities

Training for novice
technicians.
Exercise in work
improvement.

In fiscal 2018, our president has announced a message
regarding Diversity & Inclusion (D & I) inside and outside
the company. We conducted e-learning to prevent
harassment and promote understanding of LGBTat 24 companies including
domestic affiliates . In addition, we
have started dispatching crossindustry training for chief level
women, interviews for returning tochildcare leave, and delivery of
male childcare leave promotion
emails.

Group work on
MONOZUKURI staff
training for the sightstrength.

We are promoting to create a culture which carries out
the operation with the common language of“strengthening the GEMBARYOKU”. What’s more, we will
strengthen our “MONOZUKURI capabilities” by working
together as a united Furukawa Electric Group both inJapan and overseas.

People Undergoing GENBARYOKU Reinforcement Training（No. of GENBA-RYOKU trainees）

600
500

88

400

Furukawa Electric

100

423

0

24
75

76

292

“Nadeshiko Brand”
logo“L-Stars” logo

Objectives related to support the success of womenin the workplace (Set new target value in fiscal 2018)1W
 e aim for 7% of females in managerial positions by fiscal
2025
2W
 e aim for 15% of females in chief positions by fiscal 20253W
 e aim for 40% of females in university graduates recruits
by fiscal 2025
(note) A summary of our company’s initiatives is available on the Ministryof Health, Labour and Welfare’s “Enterprise database promoting
women’s success”.
http://www.positive-ryouritsu.jp/positivedb/detail?id=529

189 265300

42Group companies

Iku-Boss enterprisealliance

183

43

200

“Male Leaders’
Association
Accelerating the Activityof “Shining Women” ”

344

159

121 101156

237 215184 305

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(FY)

Cross-Industry
Training for
Women
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201953

people who are intellectually challenged. Furukawa New

Work Style Reform

Leaf will actively promote initiatives to improve theWork style reform activity started in 2015 as Phase 2
from fiscal 2018, with the slogan “Toward a corporategroup where each and every employee works withexcitement, and collaboration!” We are active on threepillars: “Autonomous work-life management”, “Culture of
Learning and Growing one another”, “Practice of Change”.
Above all, in the“Practice of Change”, we established a
new award, commended good practices that can be

employment rate at our Hiratsuka Plant, Chiba Plant, and
Mie Plant as activity bases.
Actual Employment Rate
(From our employment status report on disabled persons)
(%)

2.5
2.0

used as reference for other departments. We also held a

1.5“preceding case seminar” to introduce their activities, and1.0

established a dedicated website for providing know-how
and exchanging information. In this way, we have
implemented measures to recognize good initiatives and

2.32

2.31

2015

2016

2.04

2.23

2.12

0.5
0.0
2014

2017

2018

(FY)

share them widely.

Internships

Diversity in Hiring
In order to respond to the global development of ourEver since the Japanese government introduced abusiness, Furukawa Electric Group has come together tosystem of internships in 1997 as part of an

implement a variety of initiatives with the aim of securingindustryacademia-government collaboration, in our role

human resources. In addition to information exchanges

as a manufacturer Furukawa Electric has taken on

to share know-how on hiring within Furukawa Electric

numerous science and engineering interns with the aim

Group, we held Furukawa Electric Group Forum in Tokyo,of contributing to the fostering of Japanese technicians ofat which actively appealed our attractiveness to students.
Number of new graduates hired by gender (Unit: Person )MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

the future. We have already taken on more than 200
students across our various workplaces.

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
28
45
61
73
80
8
15
31
31
31
36
60
92
104
111
0

0

1

0

0

0
0
0

0
0
0

15
0
15

46
0
46

49
1
50

Encouraging Employment of Disabled People
Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose of
improving our employment rate of disabled people. As of
March 31st 2019, Furukawa New Leaf employs 40

Internship training

Improving the Working Environment throughLabor-Management Opinion Exchanges
Furukawa Electric maintains a basic position that bothlabor and management should endeavor to engage insincere discussions, and therefore we focus on issue
resolution and deepening mutual understanding.
We hold our Central Management Briefings twice
annually for public exchanges of opinion between laborand management. We have conducted such meetingsfor 67 years from fiscal 1952. As of May 2019 we had
held these briefings 133 times. Representatives from

Furukawa New Leaf employees at work

54

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019labor and management exchange frank opinions andSocialshare information about a broad spectrum of items atmonitoring functions, such as compliance response andthese briefings, such as the business environment,

the implementation status of other CSR activities.

management, and topical matters.
We also have in place various committees such as the
Personnel System Exploratory Committee and the

Employee Data Book
Please see the URL below for Employee Data Book.

Committee for Studying Shorter Hours that are designed
CSR

to improve the working environment, which management
and labor discuss on a daily basis. These discussions
lead to improvements in various systems and strengthen

https://www.furukawa.co.jp/en/csr/report/

Targets and Results (Personnel Development and Working Environment)

Achieved

FY 2018

Partially achieved

Not achieved

FY 2019

Targets

Results

Strengthening of global human- Implementation of One Furukawa
Mind Penetration and “Core Value”
conscious GDP training- Continued dispatch of GCP- In GDP, we held a session to discuss corevalues by calling people with experiencein past GDP from affiliates in Brazil-G CP continuous dispatch has not beenachieved due to new applications

Strengthening of global human-R eview of the selection criteria
for GDP training to obtain hightraining effect xpansion and improvement of-Ethe contents of GMP training

Reinforcement of Monozukuri
capability- I mplementation of “Monozukuri
capabilities” Education
 ontinue to strengthen “Monozukuri-Ccapabilities” of affiliated companies(Japan and overseas) (ongoing)- Authorized manufacturing education
system with HR department
 ontinue to promote affiliates to send-Ctheir employees to each training program
On-site training has not been scheduled
and has not been implemented

Reinforcement of Monozukuri
capability- I mplementation of “Monozukuri
capabilities” Education-C ontinue to strengthen“Monozukuri capabilities” ofaffiliated companies (Japan andoverseas) (ongoing)

Support for diverse ways ofworking, and work-life balance- The number of people with annual
regular vacation acquisition lessthan 5 days shall be zero
- Introduce a seminar as a careerdevelopment support to parents
who take childcare leave- “ The number of people with annual
regular vacation acquisition less than
5 days shall be zero” has not beenachieved by 2 people- I ntroduced return support interview
as career development support for
employees who took childcare leave

Support for diverse ways ofworking, and work-life balance- Introduction of hourly annualleave-P romote understanding of
unconscious bias to raiseawareness of Diversity &Inclusion

Achievement

Targets

Message fromthe General Managers

Change ourselves and take on new challenges starting fromthe point of “Carefully take advantage of the people”
Masako Tanaka
Corporate Vice President, Deputy General Manager,
Strategy Division and General Manager, Human Resources Department
The HR department's challenges are becoming increasingly
sophisticated,such as intensifying global competition,
accelerating technological innovation, increasing labor
shortages, and diversifying the values of workers.In the historyof more than 130 years, our group has made the DNA“Carefully take advantage of the people”. As a person in
charge of the human resources department, I would like torespond to changes in the environment based on this starting
point, and change myself to take on new challenges.

Last year, we established the global “Furukawa ElectricGroup Vision for Our People ”. It was created in collaboration
with HR managers of overseas group companies that showed
a common way of thinking about people and organizations
and what they want to be. The role of the HR department is “tomake use of diverse human resources” and “to support people
who want to grow”. With the aim of balancing the company's
sustainable growth and individual growth, the HR department
will take the lead in acting on Open, Agile, and Innovative.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201955

Occupational Health and Safety
Basic Approach to Occupational Health and Safety Management
In addition to basic legal compliance, Furukawa Electric Group prioritizes initiatives that promote “becoming a safety
conscious person” and “realizing fundamental safety”. Our basic approach is to aim for zero accidents and zero illness.

Basic Policy on Health and Safety Management•E ndeavor to eradicate accidents by inspections and management in accordance with the Industrial Safety and Health Act.
•P
 romote the realization of “fundamental safety” with a goal of achieving Stage III or higher in separating people andequipment.
• Improve “safety consciousness” through practical education and risk prediction to encourage employees to become safety
conscious person. (* “Safety consciousness” : (1) Ability to identify points of risk (2) Ability to propose improvements)• Improve Safety and health management systems with a medium-term goal of achieving Stage IV or higher.
•P romote mental and physical health improvement by Furukawa Electric group’s health management activities.

Promotion System
Furukawa Electric Group has

Promotion Framework

established the Furukawa Electric Group

President

Occupational Health & Safety

Furukawa Electric Group Occupational
Health and Safety Committee

Committee (on which the President
serves as committee chairman) as theCommittee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR Department

highest body for promoting occupational
health and safety at a group level. The
committee membership is composedof executives, and carries out deliberation, decision-making and follow-up

General managers of each business division

activities for Furukawa Electric group as

Chair :

General Manager of
MONOZUKURI Innovation Division

Members:
Division general managers
Divisional Representative Safety and HealthWorks General Managers
Safety and Environment Promotion Department
Health Promotion Center, HR Department

Affiliated companies

Representative safety and healtha whole in respect to policies andDivisional occupational health and safety committees

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site Inspections by Officers

We have been holding presentation meetings on

Furukawa Electric’s safety

Furukawa Electric Group’s safety and health activities andofficers make site inspections atawarding the best with commendations. In fiscal 2018,

Furukawa Electric Co., Ltd. andthirteen teams weregroup companies whenever anselected from theaccident occurs and in

SBUs (including six

accordance with performanceteams from groupin the previous fiscal year. They

companies) to giveconfirm how appropriate the safety measures are, andpresentations andcheck the extent to which these measures have become

receive awards fromthe president.

Furukawa Automotive Systems(Japan) giving a presentation

Targets and Results (Accidents)

Achieved

Targets

Zero “accidents withworking loss days”

with a view to achieving fundamental safety, and work
Not achieved
FY 2019

Results

Achievement

Four “accidents withworking loss days”

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Site inspections by officers
at KANZACC (Japan)

firmly established. In addition, they exchange opinions

Partially achieved

FY 2018

56

Representative Safety and Health Meeting

Targets

Zero “accidents withworking loss days”

hard to prevent any recurrences.
They also conduct visits todomestic and overseas groupcompanies, and exchanged
opinions with 9 companies infiscal 2018.

SocialWork Accident Occurrence Status

Strengthening Smoking Measures

In terms of its performance in fiscal 2018, Furukawa

Since fiscal 2003, the Company have been

Electric recorded four “accidents with working loss days”,

making the full-scale efforts on smoke curbing

and failed to meet its target of “zero accidents withand implementing the actions for the prevention Non-smoking poster

working loss days”. The frequency rate of accidents

of secondhand smoke and non-smoking promotion. As aresulting in time off work (note 1) decreased to 0.48 inresult of these activities, the smoking rate of the employees

Furukawa Electric only but increased to 0.56 among all(male) has decreased from 53.3% in 2002 to 27.7% inGroup companies in Japan (note 2).

2018, and in fiscal 2017, non-smoking within working hours

Frequency rate of accidents resulting in time off work
All industries
Whole Group in Japan

Whole manufacturing industry
Furukawa Electric(note 2)Frequency rate (note 1)

2.0

1.66

1.61

1.63

1.06

1.06

1.15

0.77

0.51

1.66

1.5
1.0
0.5
0.0

0.72

1.02
0.63

(note 3)

0.28

0.29

0.28

0.30

2015

2016

2017

over the Company, under the slogan of “The Company will
welcome the 2020 Tokyo Olympic Games with full non-

1.83

smoking!!”, we will continue the multidirectional efforts ofthe triad (information provision, non-smoking support, non-

1.20

smoking environment maintaining).
0.56

Measures to Prevent Falling Accidents

0.48
2014

was achieved. In order to achieve the full non-smoking all

The falling accident increases with age, even in the
2018

(FY)

(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2018 covered full-time employees andtemporary staff at Furukawa Electric and 35 Group companies in Japan.
See page 83 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

Company, as its members are aging, as the increase offalling accident (including commuting injuries during
walking) is a serious concern, the preventive education
for the falling accidents and fitness exercises (muscle

Meanwhile, the 2018 accident frequency rate for the

training) were introduced from fiscal 2016. In addition, in

whole Group including overseas Group companies was

fiscal 2016 the physical function check-ups has been

0.76. This included accidents both resulting in and not

implemented for employees over 50s, and since fiscal

resulting in time off work.

2017, it has been expanded to over 40s.

Healthcare for Employees Working Long Hours

Certificated as “Health Management Brand 2019”and ”Health Management Superior corporation 2019”

In accordance with the Guidelines issued by the Labor
Standards Bureau entitled “Measures to be Taken by

The Company was certified as “Health

Employers to Prevent Health Impairment Due to Overwork”,

management brand 2019” selected by

we strive to manage the health of employees who work long

Ministry of Economy, Trade and Industry

hours by implementing strict limitations on working hours(METI) and Tokyo Stock Exchange, in addition

based on the results of health checkups and by arranging

to “Health Management Superior corporation

consultations for such workers with industrial physicians.

2019 (White 500)” which practiced good

Mental Health Education

health management under the METI's healthWhite 500 certificate

management excellent corporation certification system.

We have been working on mental health measures

In addition, on May 15, 2017, from the managerial view

since fiscal 2002. So far, We have developed stresspoint, “Furukawa Electric Group Health Management

control training, mental health training focusing on work

Declaration” was enacted, in order to promote “Healthengagement, and a “Pleasant Workplace Discussion

Management” which strategically strives for the health

Sessions” throughout the company.

management and the health promotion of the employees.

In fiscal 2014 and fiscal 2015, we promoted self-care

In order to “aim to become a creative and full of vitality

training and line care training for all employees in theircorporate group by taking advantage of the diverse

early 40s and all middle-ranking managers in order tohuman resources”, we will keep making “a company

improve their ability to respond to various changes. In

where everyone works vigorously, keeps growing and is

fiscal 2016 or later, in addition to continuing to implement

proud” by prioritizing safety and health to everything,these trainings, we have introduced a stress checkpromoting various activities mindful of health management

system in accordance with legal revisions.

throughout the Company.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201957

Relations with Communities
Basic Policy
Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local community.
Going forward, we will strengthen these actions further along the three dimensions of nurturing future generations,promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities（Revised March, 2011）
Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local
communities, in addition to its business-related activities, in order to maintain and strengthen community ties
built over centuries and create a better tomorrow for future generations.

Donated Furukawa Electric’s facility to the Meiji Memorial Oiso Garden
As a part of the measures related to “Meiji 150th”, the Country will establish “Meiji Memorial Oiso Garden” in Oiso-machi,
Kanagawa pref.. Furukawa Electric donated the “Former Shigenobu Okuma House” and the “Former Munemitsu Mutsu
House”, which have been maintained and managed as the reception facilities, to the Country. Those were opened to the
public for a limited time as a “Meiji 150th Commemorative Project” together with the nearby Former Hirofumi Ito House.

ESG awards Social Contribution Award
Furukawa Electric has established the “CSR Special Awards” which commends the excellent social contribution
activities and the environmental conservation activities of the group companies. Starting in fiscal 2018, the scope ofawards was expanded to the activities in each of Furukawa Electric’s location to be awarded as the “ESG Award for Social
Contribution”, thus we are working to expand and to enhance the social contribution activities within Furukawa Electric Group.

Outstanding Performance Award

58

Environmental Preservation Award

Furukawa Electric LatAm S.A.

Furukawa Industrial Plastics Co., Ltd.

Development of the LSZH Green for LAN copper
cable jackets.

Employment supports by business consignment to
the facilities for the people with disabilities.

Furukawa Automotive Systems Inc.

Copper Foil Division, Furukawa Electric Co., Ltd.

Creation of the safe, secure and pleasant workplace
for the employment revitalization of people withdisabilities.

Work supports and volunteer activities for the people
with intellectual disabilities through NPOs.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

SocialActivities

in each region

Living in harmony with
the natural environment

Furukawa Electric Group conducts
various activities in each region.

■P articipated in local environment beautification campaign◦F urukawa Electric (Chiba Works, Hiratsuka Works, Mie Works,
Copper Tube Division, Copper Foil Division)◦Furukawa Sangyo Kaisha ◦ The Furukawa Battery◦ TOTOKU Electric ◦Furukawa Techno Material◦Furukawa Automotive Systems ◦Furukawa Electric Industrial Cable◦KANZACC ◦Furukawa Precision Engineering ◦ Shodensha◦Furukawa Nikko Power Generation◦Furukawa Magnet Wire

Nurturing future generations■ Supported youth development such as
the work place experiences◦F urukawa Electric(Chiba Works, Yokohama Works, Copper Foil Division)◦Furukawa Sangyo Kaisha ◦ The Furukawa Battery◦Furukawa Automotive Systems◦Furukawa Electric Power Systems ◦Furukawa Logistics

Sponsored by the labor union.
“The Coast Clean Campaign”(Hiratsuka Works)■ Conducted beautification activities outside premises“Work place experience learning”
by nearby junior high school
students.
(Yokohama Works)“New power of the art connecting
the local communities, the school
and the company”(Furukawa Electric Power Systems(note) )(note) Providing the power transmission and distribution products as the art materials.

■ Supported private sector training for teachers

Off-site beautification activities.
“Ichihara city Beautification Supports”(Chiba Works, Furukawa Electric Ecotec)◦F urukawa Electric (Hiratsuka Works)■ Participated in, sponsored, and provided
a venue for sporting events◦F urukawa Electric(Nikko Works, Hiratsuka Works, Mie Works, Copper Tube Division)◦Furukawa Sangyo Kaisha ◦ The Furukawa Battery◦Furukawa Nikko Power Generation ◦Furukawa Magnet Wire

■ Hosted, participated in, and supported festivals◦F urukawa Electric(Nikko Works, Hiratsuka Works, Mie Works, Copper Foil Division)◦ The Furukawa Battery ◦Furukawa Automotive Systems◦Miharu Communications ◦Furukawa Precision Engineering◦Furukawa Electric Power Systems ◦NTEC◦Furukawa Nikko Power Generation

Other activities■ Donated the support money to the heavy raindisaster area in July 2018◦F urukawa Electric and 32 domestic group companies■ Supported the restoration of
the Tohoku region

Living side by sidewith local communities■ Supported and worked with NPOs andspecial-needs schools◦F urukawa Electric (Copper Foil Division)◦Furukawa Sangyo Kaisha◦Furukawa Electric Advanced Engineering■ Cooperated and participated in the events
such as the regional patrol◦F urukawa Electric (Nikko Works) ◦KANZACC◦Furukawa Electric Power Systems ◦Furukawa Logistics■ Held a fishing event◦Furukawa Nikko Power Generation■ Worked on biodiversity◦F urukawa Electric (Chiba Works, Hiratsuka Works)■ Donated and raised funds for charities◦F urukawa Electric (Nikko Works)◦Furukawa Sangyo Kaisha ◦ The Furukawa Battery◦Furukawa Automotive Systems◦Miharu Communications◦Furukawa Precision Engineering ◦Furukawa Logistics◦Furukawa Nikko Power Generation■ Donated blood◦F urukawa Electric (Chiba Works, Hiratsuka Works,
Yokohama Works, Copper Foil Division)◦ The Furukawa Battery ◦Furukawa Automotive Systems■ Conducted events for employees’ families◦F urukawa Electric (Chiba Works, Nikko Works, Hiratsuka Works,
Mie Works, Copper Tube Division, Copper Foil Division)◦Furukawa Techno Material ◦Furukawa Automotive Systems◦Furukawa Electric Industrial Cable◦Furukawa Electric Ecotec ◦Furukawa Electric Power Systems◦Furukawa Logistics ◦NTEC◦Furukawa Magnet Wire◦F
 urukawa Electric (Hiratsuka Works, Mie Works)◦Furukawa Automotive Systems ◦Furukawa Magnet Wire◦F
 urukawa Electric (Chiba Works,
Nikko Works, Hiratsuka Works,
Yokohama Works, Copper Foil Division)◦ Okumura Metals ◦ TOTOKU Electric◦Furukawa Techno Material◦Furukawa Precision Engineering“The 4th Tochigi Furukawakai/ Furukawa◦Furukawa Nikko Power Generation
Forest Tree Planting Activity”◦Furukawa Magnet Wire
(Furukawa Precision Engineering)

Challenges and Future Policy
Furukawa Electric’s works, branch offices, and group companies
are implementing community-based activities with ingenuity. We willcontinue investigating programs and other measures which can apply
our unique company characteristics in accordance with the Furukawa
Electric Group Basic Policy on Social Contribution Activities.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201959

Environment
Environmental Management
Furukawa Electric Group Basic Environmental Policy
Basic Philosophy
We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is aserious issue confronting the international community, and we pledge to contribute to a sustainable future for theworld through technological innovation that utilizes our strength in advanced materials.

Action Guidelines
1.	
We shall comply with environmental laws and regulations as well as the demands of our customers and others,setting ever higher environmental targets as we continuously improve our global environmental conservation efforts.
2. W
 e shall strive to develop products that are friendly to the Earth, and create new environmental businesses.
3.	We shall strive to reduce environmental risk by incorporating anti-climate change and resource
conservation/recycling considerations, as well as a reduction in the use of environmental impactcausing substances, across the entire product lifecycle.
4.	We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of
biodiversity and sustainable use of resources.
5.	
We will seek harmony with the natural environment and local communities through dialogue with our stakeholders.

Environmental Management Organization

environmental activities of Furukawa Electric Group.

Furukawa Electric Group promotes environmental

In fiscal 2018, 61 employees attended the ISO14001

activities based on the basic environmental philosophy.

internal environmental auditor training for the newly

The supreme advisory body in charge of the environment

appointed employees. The differential education was

who is called the “Furukawa Electric Group Environmental

held in Hiratsuka Works. An education by rank, at theCommittee” is promoting the environmental

beginning of the fiscal, covering the new employee

management. The Corporate Vice President, who is also

training, the newly appointed managers training and theGeneral Manager of the MONOZUKURI Innovation

mid-level MONOZUKURI staff training were conducted.

Division, serves as the chairperson, and the committee

In the Environmental Month of Jun 2018, the Hazard

consists of the General Managers from each businessPrediction activities (KYT: kiken yochi training indivision and each corporate division responsible forJapanese) was conducted as an activity to prevent

management. The progress is reported quarterly to theenvironmental accident and the irregularities.

Board of Directors level.
In order to ensure that the environmental management
can be implemented smoothly, the environmental issues
are specifically examined cross-departmentally in the“Council of Environmental Managers” which is consistingof the environmental manager of each business divisionand corporate division.

Environmental Education

Promotion Framework
President
Furukawa Electric Group
Environment Committee
Committee chair:
General Manager of the MONOZUKURI Innovation Division
Committee members: Management
Organizer: General Manager, Safety & Environment Promotion
Department, Production Technology Division
Technology & Engineering Division
Planning Department Manager

Environmental Education System andEnvironmental Education Programs

Safety and Environmental
Promotion Department
Council of Environmental
Managers

Furukawa Electric Group is engaged in a variety ofenvironmental education activities in order to raise
environmental awareness among its employees and help
them to share information necessary to conduct the60

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Committee for Development ofEnvironmentally Friendly Products

Environment
Committee of Works

Divisional Environment
Committees

Special Committee

Affiliated Group Companies
in Japan and Overseas

Subcommittee
MeetingEnvironment

Environmental activity award system

accounting and works hard to promote efficient andIn Furukawa Electric Group, aiming at the improvement

effective environmental activities through the quantitativeof the environmental awareness and the level up in theidentification of environmental conservation costs andenvironmental activities, from fiscal 2010, we started theeffects. Collation is implemented in reference to theEnvironmental Activity Awards, and in fiscal 2018, its

Ministry of the Environment’s “Environmental Accounting

name was changed the ESG Awards “Environmental

Guidelines 2005” and covers Furukawa Electric Co., Ltd.

Contribution Award”.

and 22 domestic group companies.

In fiscal 2018, through the judging panel, one award

The costs of environmental conservation activities infor the Excellent and one award for the Effort were

fiscal 2018 were 2.86 billion yen in expenses and 0.9

selected, and were awarded in early July at thebillion yen in investments. This represents a 0.04 billion“MONOZUKURI Presentation”. The award for the

yen increase in expenses and a 0.54 billion yen fall in

Excellent was to the project that significantly reduced theinvestments against the previous fiscal year.

power consumption in the manufacturing process by

Please see P.83 for details of the companies included

applying the new cross-linking technology”.

in the scope of data collation. Please see below for thecollated results of environmental accounting.

Environmental Accounting

CSR

Furukawa Electric Group has introduced environmental

https://www.furukawa.co.jp/en/csr/

Environmental education programs
Category of educational
training

Content

New recruits

Education for new recruits(once a year, mandatory)

General environmental conservation activities

EMS activities (asneeded, mandatory)

Environmental Policy and purpose, goals andgeneral knowledge pertaining to the environment

Generalemployees

Mid-career
employees

Newly appointed
Management
section managers

Training for new recruits

ISO14001-related education Requirements of ISO standards, environment(two-day course)(twice a
regulations, procedures for internal environment
year, voluntary)
audits, various drills
One-day brushup course(once a year, voluntary)

Trends in environmental regulations, various drills
to brush up auditing skills
Environmentally considerate design

Environmental subjects(as needed, voluntary)

Environmental regulations
Control of chemical substances contained in products

Consolidated environmental
Seminars by experts on priority issues
management seminars

Message fromthe General Managers

Towards the contribution to the decarbonization,
the sound material-cycle and the circular & ecological sphere society,the environmental targets 2030 was established.
Tsutomu Fujinuma
General Manager, Safety & Environment Promotion Department,
MONOZUKURI Innovation Division

As is known, the climate change, including the extreme
weather, is occurring in many countries around the world. The
impact of the greenhouse gas emissions is a major factor.
Therefore, the activities for the decarbonization is being
promoted through the whole world.
Among the newly set environmental targets 2030, we areaiming to contribute towards the decarbonized society,towards the sound material-cycle society and towards thecircular & ecological sphere society. Especially for the
reduction of the greenhouse gas emissions the long term
target figures was set.
In addition to the previous hydro power generation, the solar

power generation started supplying, and we are proceedingwith our work aiming to improve the renewable energy ratio.
Furthermore, we will promote the activities to achieve thetargets through the realization of the greenhouse gas
emission reduction measures and the promotion of therecycled materials usages from the perspective of the soundmaterial-cycle society, including the value chain.
We will continue to work in order to earn the trust of the
stakeholders, through taking the initiatives in the products
developments that contribute to the environment and throughthe manufacturing that is friendly to the environment, in
collaboration with our colleagues working around the world.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201961

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2018
We tallied data for Furukawa Electric, 34 domestic group companies, and 54 overseas group companies—a total of 89
companies.
Please refer to page 83 for a list of all applicable companies.

INPUT
Category

OUTPUT

Domestic Overseas

Unit

Category

Raw materials
CopperAluminum
Iron
Other metals
Glass
Plastic

EnergyElectricity(purchased electricity)
Electricity(hydroelectric electricity)
Electricity (solar electricity)
City gas
Natural gas
LPG
Heavy fuel oil A+ Kerosene + Light oil

Water
Industrial water
Groundwater
Tap water

Domestic Overseas

Unit

Waste (note 3)
145.6
7.6
2.6
5.9
33.7

188.5
56.9
9.4
0.8
3.6
54.1

1000t
1000t
1000t
1000t
1000t
1000t

Furukawa Electric
7 works,
34 domestic groupcompanies
and54 overseas groupcompanies

Total waste
generated (note 4)
Final waste disposal
Recycling amount

16.3

1000t

0.4
26.1

11.0
5.3

1000t
1000t

338
49
2
76
12

456
-

1000t-CO2
1000t-CO2
t
t
t

210
402

-

9,272

1,983

1000 m3

8,630
7,678
934
17
642

513
110
0
403
1,470

1000 m3
1000 m3
1000 m3
1000 m3
1000 m3

32
37
47

-

1,113

53,837

Atmospheric emissions

7,671

8,761

534

753

GWh

108

-

GWh

260
7,552
7
17
4,391

1,742
4,980
21,0252774

MWh1000 m3
1000 m3
1000 tkℓ

10,5162,621

1000 m3

6,757
2,988
772

46
322
2,253

1000 m3
1000 m3
1000 m3

Public waterways
Rivers
Sea
Other
Sewer

50.8

-

1000t

BOD
COD
SS

2.7

11.2

1000t

Volume of water
recycled and reused

0.09

0.4

1000t

TJ

28.4

CO2
SF6
SOx
NOx
Soot

Chemical substances
Volume emitted
Volume transferred

WastewaterttChemical substances
Volume handled (note 1)ttt

Packaging (note 2)
Cardboard+ Wood + Paper
Plastic(note 1) PRTR-listed substances(note 2) Cardboard, wood, paper, and plastic used in product shipping(note 3) Including valuable resources (Japan)(note 4) Emissions off-site

62

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20191000 m3

Environment

Targets and Performance of Environmental Conservation Activities
Environmental Targets 2030

 ontribution to the circular & ecological sphere society:
3. C

1. Contribution to the decarbonized society: Aiming forzero emissions over the long term.

Minimize the impact on the ecological system throughthe provision of the environmental activities and(1) T he greenhouse gas emissions in the businessproducts / services.

activities: Reduce absolute scope 1 and 2 GHG
emissions 26% by FY2030 from a FY2017 base year.

In fiscal 2018, Furukawa Electric Group has set the(2) The greenhouse gas emissions in the value chain:

Environmental Targets 2030 and applied for SBT (note) andReduce absolute scope 3 GHG emissions 20% by

got certified in fiscal 2019.

FY2030 from a FY2017 base year.

(note) SBT: Science Based Target.

2. C ontribution to the sound material-cycle society:
Promote of the recycled materials usages aiming at
the sound material-cycle society.
Achieved

Targets and Performance (Environment)
Activity

Reduction of greenhouse gas
emissions (Scope1&2) (note 1)

Base
year

l

FY 2018 results
Reduced 21.2%

2015

Overseas : 3% or more
(greenhouse gas emission per sales)

Reduced 18.3%

Domestic : 1% or more comparedto FY2017±0%

Evaluation

Target for FY 2019
(Base year: FY2017)4.5% or more

Improve to more than 0.5%

Set targets

Reduce by 20% or more compared to FY2017 by FY 2030

2013

Domestic : 10% or more
(production energy per sales)

Reduced 15.9%

2015

overseas : 3% or more
(production energy per sales)

Reduced 12.4%

Reduce transportation energy

2015

Domestic : 3% or more
Reduced 3.0%
(transportation energy per ton-kilometers)

Domestic : 2% or more(transportation energy per ton-kilometers)

Reduce total waste

2015

Domestic : 3% or more(volume per sales)

Reduced 24.8%

Domestic : 2% or more(volume per sales)

Reduce water withdrawal

2015

Domestic and overseas :3% or more (volume per sales)

Domestic : reduced 11.5%
Overseas : reduced 13.6%

2% or more

Improvement sales of environmentallyfriendly products

Sales ratio : 40% or more

40.5%

Sales ratio : 50% or more

Contribution of products to avoided
environmental impact

80,000 ton-CO2 or more

138,000 ton-CO2

90,000 ton-CO2 or more

CDP (note 3) SCORE UP (Climate Change)

Score B or more

Score B-

Score B or more(note 2)

Reduce production energyllTargets for FY 2018
Domestic : 5% or more

Reduce greenhouse gas emissions (Scope3)

Not achieved

Furukawa Electric Group (Domestic and overseas)

2013

Improvement ratio of renewable energy

Partially achievedlll Prevention of environmental accidents

Number of accidents : Zero
Accidents Zero
Number of small accidents : 3 or less Small accidents 2

2% or more
(production energy per sales)

Number of accidents : Zero
Number of small accidents : 3 or less(note 1, 2)

Scope 1: D
 irect emissions from business sites through the use of fossil fuels, etc.
Scope 2: Indirect emissions through the use of electricity, steam and heat supplied from outside of business sites
Scope 3: O ther emissions include indirect emissions such as purchased products and services, business trips, commuting, upstream transport.
(note 3)	CDP: C
 DP is an organization formed from institutional investors for the purpose of managing a project requiring companies to disclose their strategies forclimate change and the specific amount of greenhouse gases they generate.

Activities Targets and Performance in Fiscal 2018

Activity Targets in Fiscal 2019

In fiscal 2018, the final year of the medium-term

In fiscal 2019, we started a study towards the formulation

environmental plan, we worked to achieve the targetsof the next medium-term environmental plan. For the climate

together with the whole group. For the climate changechange countermeasures, we will strongly promote thecountermeasures, the total CO 2 emissions from thereduction of the greenhouse gas emissions including thedomestic and the overseas group were reduced by 4.6%

sulfur hexafluoride. The solar power generation introducing

compared to those of fiscal 2015, through the integration

plan will be proceeding mainly in the sites in Taiwan and inand the consolidation of the production bases for various

other countries, and will switch to use renewable energy.

products from the business structure reformation.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201963

Environmentally Friendly Products
Environmentally Friendly Products and thee-Friendly Accreditation System

Environmentally friendly products as a percentage of sales
Cumulative number of registered items (Furukawa Electric)
Cumulative number of registered items (Consolidated)
Percentage of sales on a single-year basis (Furukawa Electric)
Percentage of sales on a single-year basis (Consolidated)

Furukawa Electric Group defines the environmentallyfriendly products as follow: The products that arecomprehensively evaluated to contribute to reducing theenvironmental impact or to have(No. registered)

(%)

140

70

64.8

120
100

a positive environmental impact

43.4

106

80

through the entire life cycle.

The e-friendly mark

40

24.4

friendly products, the environmental mark “e-Friendly” is20

35

displayed on the exterior and the catalogues to0Categories of Environmentally Friendly Products
Furukawa Electric Group's environmentally friendly products belong to one of four categories described below.
Environmentally friendly product categories
Category

Content

Prevention of
global warming

Products with functions that contribute to
the reduction or absorption / fixation of thegreenhouse gas (GHG) emissions through theentire life cycle, or products that have reduced thegreenhouse gas in its manufacturing processes.

Zero emission

Products made from recycled materials, products
designed with easy to-recycle components,
products made from materials or with design
facilitating volume reduction for lowering waste
volume, products designed to share common
components with other products or products
designed as common components, productsthat have reduced waste volume in any one of all
manufacturing processes.

Elimination ofmaterials thathave an impact on
the environment

The products that meet one of the followings.
(1) P roducts that do not use the ozone-depleting
substances in all its fabrication processes.
(2) P roducts that contain environmentallyhazardous substances less than the regulation
stated value.
 roducts that do not generate the(3) P
environmentally hazardous substances
exceeding the regulation stated values onusing or disposing.

Resource
savings

Products that result in overall energy savings bysuch means as reducing the use of raw materials
and components as well as scarce resources,
featuring enhanced longevity, allowing easierproduct and component maintenance, andreducing the use for resources in packaging.

Environmentally Friendly Products (in Japanese)
https://www.furukawa.co.jp/csr/environment/

In order to increase the ratio of the environmentallyfriendly products in all the products of Furukawa ElectricGroup, we set targets based on percentage of sales, andconfirm our progress and success on this basis.

64

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

112

2014

60

121

116
40.5

30.6

32.0

32.6

75

83

92

2016

2017

2015

105

50
40
30
20
10

2018 (FY)0(note) In fiscal 2018, the rule for the environmentally friendly products was revised(The products that reduced the greenhouse gas (GHG) in the manufacturing
process, etc.) and was reflected in the aggregate calculation.

Efforts to Contribute to the Environmental
Impact Reduction by the Products
Furukawa Electric Group is working to visualize thereduction amount of CO2 emission at the final stage ofthe usage after our components are installed in thecustomer's products, based on the calculation result of
the CO2 emissions “visualization” of the main products by
utilizing the Life Cycle Assessment (LCA).
For our main products, the copper foils, the semicon
ductor lasers, the rectangular magnet wires and thealuminum wire harnesses, in our fiscal 2018 estimation,
the total reduction value estimated from the products
sales amounts mainly in the domestic market wasapproximately 140,000 tons-CO2 / year.
From now on, through the close monitoring of the
global market trends, we will strive to create a social
infrastructure that integrates the information, the energy
and the mobility, to expand the sales of each productgroup and to expand the number of the contributing
product types. Thus we will expand our efforts for the
global environmental issues through our products.
Contribution of products avoided CO2 emissions(104 tons-CO2e)

aluminum wire harnesses
Copper foil for electrode material of lithium-ion batteries
Rectangular wire for HV motors
Narrow-bandwidth-FBT (tunable wavelength laser)

14
12

Expanding Environmentally Friendly Products

50.0

97

60

For the products compatible with the environmentally

encourage their adoption.

48.3

51.1

0.6

0.7

0.8

8.2

9.2

10.4

1.3

10
8

7.7

6
4
2
0

4.2
1.0
1.2

0.8

1.1

1.2

1.8

2.0

1.8

1.3

2014

2015

2016

2017

2018 (FY)EnvironmentR eduction of CO2 emissions using copper foil
for lithium-ion batteries in electric vehicles.
Copper foils contribution
to electric cars

Lithium ion battery

Positive
electrode

Negative
electrodeterminal
Separator
Negative
electrodeplate
Separator

Electrodeposited
copper foil for
lithium-ion battery:“NC-WS”

Positive
electrodeplate

Climate change measures
Efforts to Reduce Greenhouse Gas Emissions
The greenhouse gas emissions of Furukawa ElectricGroup are mainly energy originated CO2 emissions andthe sulfur hexafluoride emissions.
In fiscal 2018, the CO 2 emissions from Furukawa
Electric and the domestic group companies were 338,000
tons-CO 2e, and were reduced by 4.0% compared tothose of fiscal 2017. The CO 2 emissions from theoverseas group companies were 456,000 tons-CO2e, andR eduction of CO2 emissions by the narrow
beam linewidth and high power compact
Integrated Tunable Laser Assembly (ITLA).

were reduced by 0.1 % compared to those of fiscal 2017.
And the sulfur hexafluoride emissions were reduced by
45.4 % compared to those of fiscal 2017 due to theprogress in the maintenance of the test facilities, etc., andthe total greenhouse gas emissions were reduced by 60
thousand tons compared to those of fiscal 2017.
As an effort for the carbon reduction, the fuel in the MieWorks was switched from LPG to LNG in January 2019.
In the Copper Foil Division, the solar power generationequipment was installed and started supplying inR eduction of CO2 emissions by the HV
rectangular wire for the drive motor inelectric vehicles.

February 2019.
Furukawa Electric Group will continue to switch to theenergy with less CO2 emissions.
Greenhouse gas emissions

Extruded resin layer
Enamel layer
Rectangular conductor(104 tons-CO2e)100

CO2 (Furukawa Electric & domestic group companies)
CO2 (Overseas group companies)
SF6 (Furukawa Electric)

6.3

9.0

48.1

46.1

46.0

45.6

41.3

35.1

35.7

35.3

33.8

2013

2015

2016

2017

2018 (FY)

4.9

80
60

45.5

40
20

R
 eduction of CO2 emissions by aluminum
harnesses for automobiles.

0(note) For the overseas CO2 emission coefficient, the coefficient for each country
according to the IEA (International Energy Agency) is used for purchased
electricity, while the Japanese emission coefficient is used otherwise.
Emissions of greenhouse gases other than CO2 are converted to CO2
equivalent emissions using Global Warming Potential (GWP).

Copper Foil Division, Nikko, Tochigi(solar power generation equipment)
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201965

Use of the Renewable Energy

Initiatives in Logistics

Furukawa Nikko Power Generation Inc. of Furukawa

The transportation amount in Furukawa Electric GroupElectric Group possesses the four power plants and is

was 232 million ton-kilometers during fiscal 2018. Amongsupplying the hydroelectric power. It covers 100% of thethis amount, the Company transported 135 million ton-

power used in Nikko Works and the copper strips are

kilometers which was increased by 10.6% in comparison

manufactured using the hydroelectric power.

with fiscal 2015, and the CO2 emissions were increased

In fiscal 2018, the solar power generation equipment

by 8.4% which is 15,500 tons-CO2. The specific con-

was installed in each Copper Foil Division, Furukawa AVC

sumption showed a 1.9% of reduction in comparison

Electronics (Suzhou) and Furukawa Mexico S.A. De C.V.,

with fiscal 2015. We will continue to promote modal shift,and started using in January 2019. In fiscal 2018, theincrease loading ratios and encourage the joint shipping.

usage ratio of the renewable energy in Furukawa Electricand the domestic group companies maintained 17%.
We will continue to improve the ratio of the renewable

CO2 emissions and energy intensity related totransportation (Furukawa Electric)(1,000 tons-CO2e)energy usage.

20

Renewable energy ratio(Furukawa Electric and domestic group companies)
800

600

17

17

17

15

1.67

613

14.8
5

583

200

87

76

105

10.0%

644

619
110

642
109

0

2014

2015

2016

2017

2018

1.71

1.69

1.66

1.68

1.60
1.20

14.3

14.9

2015

2016

16.1

15.5

0.80
0.40

0
2014

400

(MJ/t·km)

2.00

10

20.0%

15.0%

12

energy intensity

15

Renewable energy (Hydroelectric power generation and others)
Electric power consumption
Ratio

(GWh)

CO2 emissions

25

2017

0.00
2018 (FY)

Measures to Disclose Environmental Information

5.0%

Furukawa Electric Group has been answering to

0.0%
(FY)

investors, on CDP climate change since fiscal 2008 andenquiries from CDP, which is representing our institutional
on CDP water since fiscal 2013. In fiscal 2018, our CDP

Efforts on Energy Saving in Factories

climate change score was B- and CDP water score was

Furukawa Electric Group's energy usage rate wasabout 20% for fuel and about 80% for electricity. In

As a response to the customers utilizing the CDP

particular, we achieved energy saving in the manu

supply chain program, in order to maintain and improvefacturing process with high energy usage ratio. We

the CDP scores, we will continue to expand thereplaced conventional equipment with more efficientenvironmental information disclosure contents and makeproduction process and higher efficiency equipment. We

the reliability higher. We also continue our participation in

implemented measures such as heat insulation of thethe environmental information disclosure infrastructure

high temperature section of equipment consideringdevelopment project of the Ministry of the Environment

energy balance. Also, the factory building LED lighting isand continue our collaboration with The Japaneseproceeding in accordance with the schedule.

Electric Wire & Cable Makers’ Association and the Japan
Copper and Brass Association.

Energy consumption(1,000 kℓ)

Furukawa Electric & domestic group companies
Overseas group companies

500

300

0

Scope1

Scope2

Scope3

1,649

1,584

1,555

1,607

676
155

671

665

646

209

238

197

2015

2016

2017

2018

3,000

205

2,500

223

220

221

226

200
100

Greenhouse gas emissions of CDP disclosure (103 tons-CO2e /year)(1,000 tons-CO2e)

400

66

B-.

2,000
1,500

213

188

192

198

198

2013

2015

2016

2017

2018 (FY)

1,000
500

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

0

(FY)

Environment

From the third party

targets and making efforts to grasp the amounts of theverification on the green-water intake and wastewater for each site. Since fiscal

house gas emissions in

2015, we have taken action for the reduction of the water

fiscal 2018, with fiscal

intake amount per sales unit. In fiscal 2018, the water2017 as the base year andintake amount per sales unit of Furukawa Electricwith fiscal 2018 as thedomestic group was 2,110 m3/100 million yen, decreased

reporting year, the sulfur

by 11.5% compared with fiscal 2015. For Furukawa

hexafluoride in the Scope

Electric overseas group, the water intake per sales unit

1 and the category 1 in

was reduced by 14.1% compared with fiscal 2015.
Though, Furukawa Electric Group will continue to use

the Scope 3 were added.

water resources necessary for the production processes,

Verification Statement ofGreenhouse Gas Assertions

Furukawa Electric Group will continue to make efforts tosave water and recycle usage, and manage the water
quality and the waste water volume.

Reducing Waste

In the information disclosure regarding the water
re s o u rc e m a n a g e m e n t o f C D P Wa t e r, u t i l i z i n g

Initiatives in the Waste Reduction

AQUEDUCT of World Resource Institute (WRI) to identify

In fiscal 1993 Furukawa Electric Group started theefforts to increase the waste recycling, and since fiscal

water risks at major sites in Furukawa Electric Group and5 sites were selected.

2001 the zero emissions activities have been promoted.

In every year, the risk assessments including water

And, since fiscal 2014, the activities aiming at the total

resources have been conducted, and their improvement

waste output reduction, including the valuable resources

is progressing with incorporating them into the BCM plan.

have been promoted.
In fiscal 2018, per sales unit in Furukawa Electric andVolume of water intake(water source)

the domestic group companies was reduced by 24.8%
compared to those of fiscal 2015. We are working to

Inside Furukawa
Electric Group

reduce the waste generation in the manufacturing
processes by introducing the waste fluid treatment

Volume ofrainwater use

facilities and reducing the waste fluid.
We will continue our efforts to the effective use and therecycling of the resources including the raw materials
aiming at the sustainable resource flow.

Volume of recycled water

Water Resources
Effective Utilization of Water
Since fiscal 2013, Furukawa Electric Group has
promoted effective water utilization as one of the activities
Total amount of waste generated

Use of water resources

Furukawa Electric & domestic group companies
Overseas group companies(1,000 tons)

Volume of wastewater (drainage)(1,000 m3)80

20,00060

15,000

40
20
0

23

18

18

34

34

2014

2015

17

16

10,000

33

30

31

5,000

2016

2017

2018 (FY)0

Furukawa Electric & domestic group companies
Overseas group companies

2,621

2,579

2,652

2,624

10,715

10,28910,362

10,516

2015

2016

2017

2018

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201967

emissions of volatile organic compounds (VOC), one

Chemical Substance Management

cause of photochemical smog.
In fiscal 2018, the emission amount of Furukawa

Green Activities

Electric domestic group was decreased by 4% compared

Response to Customer Requests
Furukawa Electric Group has participated in JAMP

with fiscal 2017, but increased by 5% compared with(note 1)

fiscal 2012. We will continue our efforts to reduce thesince 2009, and is implementing simultaneous

usage amount of the targeted substances along with theenvironmental examinations based on the latest

suppression of the emissions from the production

information from the JAMP management target

processes and others.

substance list related to management of chemical
substances contained in products. We also monitor
trends in laws and regulations covering the chemical
substances contained in products and compile andupdate data as it becomes available, allowing us to

Emissions of volatile organic compounds (VOC)(tons)

Furukawa Electric

300

107

respond promptly to customer requests.
200

Response to Overseas Regulations and Managementof Chemical Substances Contained in Products

100

Furukawa Electric Group establishes a management0system for chemical substances contained in products for
major operational bases and affiliated companies,

Domestic group companies

400

100

108

120

115

196

172

196

210

203

2012

2015

2016

2017

2018

(FY)

(note) Volatile organic compounds are the 118 substances specified by
The Japanese Electric Wire & Cable Makers’ Association(January 2012 edition).

strengthens the environmental product regulations andgrasps the environmental risk that should be lowered, andimplements measures depending on their importance.

Appropriate Management of Chemical Substances
At Furukawa Electric Group, we confirm the properties

Regarding the Registration, Evaluation, Authorization

and applicable laws and regulations regarding all chemical

and Restriction of CHemicals (REACH) compliance, which

substances we use during the manufacturing process on

is the environmental products regulation in EU, in fiscal

their Safety Data Sheets (SDSs) and administrate them.

2018, the environmental inspection was implemented on

And in accordance with the PRTR Act (note2) we continue to

197 substances up to 20th Substance of Very High

strive to keep records of the amount handled, transported

Concern (SVHC) REACH. In order to respond to theand discharged of the relevant substances.

customer's request, we will proceed to shift to the(note 1) JAMP: Joint Article Management Promotion-consortium(note 2) Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof

Chemical information SHaring and Exchange under
Reporting Partnership in supply chain (chemSHERPA)
which is the information transmission scheme of chemical
substances contained in products.

Green Procurement Activities
Items that will be used in our products are purchased

Preventing Soil and Groundwater Pollution

adequately based on the Green Procurement Guidelines

Furukawa Electric Group conducts regular inspectionsof our operational division, by evaluating the suppliers’of facilities and equipment that handle specific toxic

system on the management of chemical substances

substances to prevent the pollution of soil andcontained in products and its management status as wellgroundwater. We reduce the risk of pollution throughas by confirming the data of chemical substances

measures to prevent leaks of specific toxic substances

contained in products.

and underground seepage, as well as through ongoing

Chemical Substance Management Activities
Furukawa Electric Group undertakes voluntary initiatives

68

Environmental Risk Management

efforts to switch to substitute substances.

PCB Management

to reduce emissions of harmful chemical substances. In

Furukawa Electric Group identifies the volume of high-particular, we make every effort to actively reduce

concentration PCB-containing equipment at Furukawa

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Environment

Electric Co., Ltd.’s works and at the bases of our groupcompanies, and carries out appropriate storage andmanagement.
Currently, the processing is sequentially carried out

Biodiversity Conservation
Biodiversity Conservation Initiatives

according to the plan of Japan Environmental Storage &Furukawa Electric Group has included biodiversity

Safety Corporation, and the processing has been com

conservation measures in our Basic Environment Policy.

pleted at some of our business sites. We are conducting

We have formulated and are applying Furukawa Electric

the analysis and the surveys of the equipment that haveGroup comprehensive guidelines in relation to initiatives

the potential to contain a low concentration PCB, andaimed at protecting biodiversity.

those found to be the low concentration PCB contained

While registering with the JBIB (Japan Businessequipment shall be properly kept, managed and disposed

Initiative for Biodiversity) and gaining a better under-of while making consideration for storage-related risks.

standing, our Group company Furukawa Research, Inc.

Furthermore, we will proceed the disposal at an earlystarted the cultivation activity of Pulsatilla cernua

stage according to the equipment updating schedule.

designated as an Endangered Species Ⅱ(note 1), on aCompliance with Environmental Laws and Other
Regulations
Furukawa Electric Group regularly confirms
environmental laws and other regulations to determine
items requiring compliance. We ensure compliance in a

premise of Yokohama Works. In fiscal 2016, the plant
was provided to Hiratsuka Works and Chiba Works andthe cultivation activities are also implemented.
(note 1) E ndangered Species Ⅱ is a category of species for which
the danger of extinction is becoming more serious.

Cultivation activity of Pulsatilla cernua

number of ways, such as by conducting on-site patrols
to check the state of compliance. We follow official
journals and other sources of information to stay updated
on revisions to environmental legislation and ensure that
our response is thorough.
We maintain voluntary control limits and manage
operations appropriately to ensure compliance with the Air
Pollution Control Law and the Water Pollution Control Law.
In fiscal 2018, in order to prevent the environmental
accidents and irregularities, the hazard prediction
activities was conducted. In addition, the out-of-service

Chiba Works

refrigeration facilities were checked about their handlingstatus and the facilities and equipment that handle theHiratsuka Works

hazardous chemical substances were inspected again.
We will continue the appropriate handling of thehazardous chemical substances.
We also conduct annual checks for conceivable, clear
environmental impact to prevent environmental accidents

Yokohama Worksor prevent widespread impact in the event of an accident.
According to our survey on the status of our regulatorycompliance, we were not in material violation of any
regulations.
Please see the URL below for our response to theasbestos problem.
CSR
https://www.furukawa.co.jp/en/csr/risk/

Furukawa Electric Group Biodiversity
Conservation Guidelines
1.	Evaluate the effects that our business activities have on
the ecosystem, and minimize the harmful effects while
maximizing the beneficial ones
2.	To sustainably use resources and conserve biodiversity,
consider more than ever the need to carry out measuresagainst climate change, conserve resources, recycle andreduce environmentally hazardous substances
3.	Carry out activities in collaboration with local
communities to conserve biodiversity

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201969

Non-financial Data
These two pages are summary of the non-financial data which are expressed in graphs in this report.

Overview of Furukawa electric group by region (FY 2018)

P.7

Japan
Number of the employees (people)
Number of the group companies (company)
Net sales (Billion yen) (note)

10,90240
521.3

except Japan and China

North andCentral America

South America,
Europe and others

Total

23,557
34
213.3

9,518
12
72.7

2,692
16
90.4

52,215121
991.6

FY 2017
35.3
46.0
9.0
90.3

FY 2018
33.8
45.6
4.9
84.3

Asia

China
5,546
19
94.0

(note) Net sales values by regions are calculated by the customers’ locations. They are the financial data but are summarized in this table.

Greenhouse gas emissions (Unit: x104 tons CO2e)
CO2 (Furukawa Electric and domestic group companies)
CO2 (Overseas group companies)
SF6 (Furukawa Electric) (note)
Total

P.11, P.65
FY 2013
41.3
45.5
ー
86.8

FY 2014
38.0
47.5
ー
85.5

FY 2015
35.1
48.1
ー
83.2

FY 2016
35.7
46.1
6.3
88.1

(note) According to a partial transfer of the business of VISCAS Corporation in October 2016, SF6 (sulfur hexafluoride) emissions were added on this values.

Renewable energy ratio (Furukawa Electric + domestic group companies) (Unit: GWh)
Renewable energy ratio (Hydroelectric power generations and others)
Electric power consumption
Renewable energy ratio (%)

FY 201476613
12%

P.11, P.66

FY 201587583
15%FY 2016
105
619
17%

FY 2017
110
644
17%

FY 2018
109
642
17%

FY 2014
828
22
850
2.6%

FY 2015
844
23
867
2.7%

FY 2016
911
26
937
2.8%

FY 2017
905
31
936
3.3%

FY 2018
929
31
960
3.2%

FY 2014
1.1
1.5
1.1

FY 2015
2.1
1.0
2.0

FY 2016
1.2
1.8
1.2

FY 2017
1.0
0.9
1.0

FY 2018
1.2
1.6
1.2

FY 201412
3
1
0

FY 2015124
20

FY 201612
5
3
0

FY 201712
5
30

FY 201812
5
30

FY 2014
4,558
2,166
6,724

FY 2015
4,449
2,236
6,685

FY 2016
4,564
2,263
6,827

FY 2017
4,571
2,450
7,021

FY 2018
4,523
2,640
7,163

Number and percentage of managers by gender (Unit: people)
Number of male managers
Furukawa
Electric
Number of female managers
Total
Female manager rate

P.11

Employee turnover rate by gender (Unit: %)MaleFemale
Total

P.11

Number of the directors (Unit: people)

Furukawa
Electric

Directors
Outside directors
Independent directors
Female directors

P.11

Number of patent rights (Unit: patents)
Furukawa
Electric

Domestic patents
Overseas patents
Total

FY 2019
12
5
5
1

P.11

Number of employees receiving GENBA-RYOKU reinforcement training (Unit: people)
Furukawa Electric
Domestic group companies
Total

P.53

FY 2009

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

75
24

76
42
118

292
43
335

423
88
511

344
183
527

156
159
315

237
189
426

215
265
480

184
121
305

305
101
406

99

Number of new graduate recruits by gender (Unit: people)

Specialized
staff

Professional
staff

Male
FemaleTotal
Foreign nationals
Male
FemaleTotal

P.54

FY 2015
28
8
36
0
0
0
0

FY 2016
45
15
60
0
0
0
0

FY 2017
61
31
92
1
15
0
15

FY 2018
73
31
104
0
46
0
46

FY 2019
80
31
111
0
49
1
50

FY 2014
2.04

FY 2015
2.32

FY 2016
2.31

FY 2017
2.23

FY 2018
2.12

Employment rate of disabled persons (Unit: %)Real employment rate

70

P.54

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Non-financial Data

Frequency rate of accidents resulting in time off work (note 1) (Unit: ー )FY 2014

0.28
0.77
1.06
1.66

Furukawa Electric
Whole domestic group companies (note 2)
Whole manufacturing industry in Japan (note 2)
All industries in Japan (note 3)

P.57

FY 2015
0.29
0.51
1.06
1.61

FY 2016
0.28
0.72
1.15
1.63

FY 2017
0.63
0.30
1.02
1.66

FY 2018
0.48
0.56
1.20
1.83

(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2018 covered full-time employees and temporary staff at Furukawa Electric and 35 Group companies in Japan.
See page 83 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from Japan's Ministry of Health, Labor and Welfare survey results

Environmentally-friendly products Cumulative number of registered items and percentage of sales
Furukawa
Electric
Consolidated

FY 2014
97
43.4
35
24.4

Cumulative number of registered items
Percentage of sales on a one-year basis
Cumulative number of registered items
Percentage of sales on a one-year basis

FY 2015
106
48.3
75
30.6

FY 2016
112
50.0
83
32.0

FY 2017
116
51.1
92
32.6

P.64
FY 2018
121
64.8
105
40.5

(note) In fiscal 2018, the rule for the environmentally friendly products was revised (The products that reduced the greenhouse gas (GHG) in the manufacturing process, etc.)
and was reflected in the aggregate calculation.

Contribution of products avoided CO2 emissions (Unit: 104 tons-CO2e)
FY 2014

1.2
1.0
4.2
ー

Narrow bandwidth FBT (tunable wavelength laser)
Rectangular wire for HV motors
Copper foil for electrode material of lithium-ion batteries
Aluminum wire harnesses
Total

6.4

P.64

FY 2015
1.8
0.8
7.7
ー
10.3

FY 2016
2.0
1.1
8.2
0.6
11.9

FY 2017
1.8
1.2
9.2
0.7
12.9

FY 2018
1.3
1.3
10.4
0.8
13.8

FY 2014
193
213
406

FY 2015
188
223
411

FY 2016
192
220
412

FY 2017
198
221
419

FY 2015
14.3
1.71

FY 2016
14.9
1.66

FY 2017
16.1
1.69

FY 2018
15.5
1.68

FY 2016
209
671
1,584
2,464

FY 2017
238
665
1,555
2,458

FY 2018
197
646
1,607
2,450

Energy consumption (Unit: 1,000 kℓ)

P.66
FY 2013

213
205

Furukawa Electric + domestic group companies
Overseas group companies
Total

418

CO2 emissions and energy intensity related to transportation
Furukawa
Electric

FY 201414.8
1.67

CO2 emissions (1,000 tons-CO2e)
Energy intensity (MJ/t·km)

P.66

Greenhouse gas emissions disclosed to CDP (note 1) (Unit: 1,000 tons of CO2e / year)
FY 2014138
694

Scope1 (note 2, 3, 4)
Scope2 (note 2, 3)
Scope3 (note 2)
Total

ー
ー

FY 2018
198
226
424

FY 2015
155
676
1,649
2,480

P.66

(note 1)	CDP: CDP is an organization formed from institutional investors for the purpose of managing a project requiring companies to disclose their strategies for climatechange and the specific amount of greenhouse gases they generate.
(note 2) Scope 1: Direct emissions from business sites through the use of fossil fuels, etc.
Scope 2: Indirect emissions through the use of electricity, steam and heat supplied from outside of business sites
Scope 3: Other emissions include indirect emissions such as purchased products and services, business trips, commuting, upstream transport.
(note 3)	Please refer page 83 for a list of all applicable companies.
(note 4)	According to a partial transfer of the business of VISCAS Corporation in October 2016, SF6 (sulfur hexafluoride) emissions were added on this values.

Total amount of waste generated (Unit: 1,000 tons)

P.67
FY 201457

FY 201534
18
52

FY 201633
18
51

FY 201730
1747

FY 201831
16
47

FY 2014
20,983
2,732
23,715FY 2015
10,7152,621
13,336

FY 2016
10,2892,579
12,868FY 2017
10,362
2,652
13,014

FY 2018
10,5162,624
13,140

34
23

Furukawa Electric + domestic group companies (note)
Overseas group companies
Total(note) Total amount of waste generated in Japan includes valuable resources.

Use of water resources (Unit: 1,000 m3)
Furukawa Electric (note) + domestic group companies
Overseas group companies
Total

P.67

(note) From FY2015, the method of counting water usage was reviewed.

Emissions of volatile organic compounds (VOC) (Unit: tons)
Furukawa Electric
Domestic group companies
Total

P.68

FY 2012FY 2013

196
107

192
103

303

295

FY 2014152
99251

FY 2015
172
100
272

FY 2016
196
108
304

FY 2017
210
120
330

FY 2018
203
115
318

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201971

11-Year Financial and Non-Financial Data
Mid-term management plan

Innovation 09
FY

New Frontier 2012

2008

2009

2010

2011

2012

1,032,807

809,693925,754

918,808

924,717

Operating income

9,752

20,32135,144

15,947

17,763

Ordinary income△ 14,788

19,34731,422

12,872

17,612

Net income attributable to ownersof the parent company△ 37,405

9,704

12,213△ 11,123

3,576

Capital investments (CAPEX)

41,27525,43327,94733,58147,772

Depreciation

46,932

42,46140,396

39,21635,347

Research and development expenses

19,895

17,27018,296

18,94920,210Net assets

190,428

208,928

215,904

197,569

222,843

Total assets

845,658

835,819

826,944790,114819,702

142,701

163,416

165,968

144,694

165,739425,928

397,512389,193

370,989

396,951

93,13087,034

99,907

94,888104,249

Cash flows from operating activities

78,72836,66837,121

30,77454,947

Cash flows from investing activities△ 51,267△ 25,113△ 21,382△ 20,252△ 44,939

Cash flows from financing activities△ 14,552△ 23,582△ 18,317△ 22,845△ 11,402

Net income per share (Yen)△ 53.34

13.80

17.30

△ 15.75

5.07

Net asset per share (Yen)

203.2

231.4

235.1

204.9

234.7

Operating income margin on sales (%)

0.94

2.51

3.80

1.74

1.92

Equity capital ratio (%)

16.9

19.6

20.1

18.3

20.2

2.3

5.1

9.0

4.3

4.5

ROE (%)△ 20.0

6.3

7.4

△ 7.2

2.3

ROA (%)

△ 1.6

2.3

3.8

1.6

2.2

1.22

0.97

1.11

1.14

1.15

92.2

87.5

84.6

82.0

89.5

27,94027,97028,43629,08629,17037,42737,73739,35245,42550,342

61.9

62.9

64.3

68.7

72.4

12

12

12

12

11

3

3

3

3

2

3,942

4,668

5,210

5,225

6,035

Operating results (fiscal year)
Net sales

Financial position (at the end of fiscal year)

Equity Capital
Operating Assets(Note 1)

Balance of inventory assets
Cash flows (fiscal year)

Per share data

(Note 2)

RatiosReturn on operating assets (%)(Note 3)

Total asset turnover ratio (times)
Non-financial data
Greenhouse gas emissions(x104 tons CO2e) (Note 4)
Water usage (1,000m3 ) (Note 5)
Number of group employees(Note 6)

Overseas employees ratio (%)
Number of directors
Number of outside directors
Number of patent rights(Note 7)

Figures are rounded down to the nearest one million yen. Other figures of financial data and non-financial data are round to the nearest value.
(Note 1) Operating Assets are the total of inventory and tangible and intangible fixed assets.
(Note 2) We conducted a one-for-ten reverse stock split of our company’s common shares effective October 1, 2016.
(Note 3) Return on operating assets is the ratio of the operating income over operating Assets.

72

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

(Million yen △ : negative values)

Furukawa G Plan 2015

Furukawa G Plan 2020

2013

2014

2015

2016

2017

2018

931,781

867,817874,879

843,344967,333

991,590

25,456

17,873

27,116

38,62344,80440,842

25,532

18,59818,71036,02446,90839,078

5,608

7,355

10,007

17,57028,547

29,10837,43630,67425,68731,58438,54350,03628,10622,50823,23523,37025,10626,271

17,461

16,59916,845

17,454

19,533

21,141

199,733

214,743

198,587

237,051

272,071

279,911714,845734,125

705,725

750,126

808,632

818,021

177,237

190,741

173,163

206,712236,518

247,659

294,333

307,688298,228

319,588341,825

364,456

93,66899,443

93,167104,355

113,792

122,890

18,912

41,48941,56940,402

38,42946,460△ 40,290△ 23,533

1,947△ 36,361△ 34,319△ 31,042

29,917△ 15,537△ 20,942△ 10,378△ 1,943△ 19,414

7.94

10.42

14.17

249.17405.05412.98

251.0

270.2

245.3

2,933.2

3,355.8

3,513.6

2.73

2.06

3.10

4.58

4.63

4.12

24.8

26.0

24.5

27.6

29.2

30.3

8.6

5.8

9.1

12.1

13.1

11.2

3.3

4.0

5.5

9.3

12.9

12.0

3.3

2.6

2.6

4.9

6.0

4.8

1.21

1.20

1.22

1.16

1.24

1.21

86.8

85.5

83.2

88.1

90.3

84.3

22,82823,715

13,336

12,86813,014

13,14047,045

46,134

49,82652,25451,92552,215

77.0

76.8

79.0

78.8

78.9

79.1

11

12

12

12

12

12

3

3

4

5

5

5

6,441

6,724

6,685

6,827

7,021

7,163

(Note 4) Please refer to page 65 about the greenhouse gas.
(Note 5) Water usage amounts of fiscal year of 2008 and 2009 are for the domestic values.
(Note 6) Number of group employees does not include the number of temporary employees and number of the employee temporarily transferred beyond
the Furukawa electric group companies.
(Note 7) Number of patent rights is the total of the domestic and oversea patents.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201973

Consolidated Financial Statements
Consolidated Balance Sheet (Millions of yen)
Assets

As of March 31, 2018

Current assets

Cash and deposits

50,63544,628Notes and accounts receivable-trade

224,335

219,347

02,371

Merchandise and finished goods

36,814

40,169Work in process

32,27336,956

Raw materials and supplies

44,70345,764

Securities

Other

28,64332,365

Allowance for doubtful accounts△ 1,215△ 1,090

416,191

420,513

Buildings and structures

218,385

216,932

Machinery and delivery equipment

463,538

467,247

Tools, furniture and fixtures

72,32571,977

Land

39,981

36,777

Leased assets

3,808

3,444

Construction in progress

20,48436,444△ 601,794△ 603,463

Total; Current assets
Non-current
assetsProperty, plantand equipment

Accumulated depreciation
Total; Property, plant and equipment

216,728

229,360

Goodwill

2,542

2,751

Other

8,762

9,453

Total; Intangible assets

11,304

12,204

Investments andother assets

Investment securities

132,270

119,188

Investments in capital

6,062

6,199

Deferred tax assets

6,359

13,644

Net defined benefit asset

5,143

5,633

Other

15,777

12,448

Allowance for doubtful accounts△ 1,206△ 1,172

164,407

155,942

Total; Non-current assets

392,441

397,508

Total assets

808,632

818,021

Intangible assets

Total; Investments and other assets

74

As of March 31, 2019

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

Liabilities
Current liabilities

As of March 31, 2018

As of March 31, 2019

Notes and accounts payable - trade124,387

131,422

Short-term debt

106,279

106,710

Current portion of bonds

10,000－

Income taxes payable

4,024

3,893

Provision for product defectcompensation

22,82728,400Other62,81561,193

330,335

331,621

Bonds payable

20,00020,000Long-term debt

122,227

119,298

Deferred tax liabilities

2,327

1,547

Provision for environmental measures

10,47010,691

Net defined benefit liability

43,17447,731

Asset retirement obligations

1,084

1,246

Other

6,943

5,972

Total; Non-current liabilities

206,226

206,488

Total liabilities

536,561

538,109

Capital stock

69,39569,395

Other capital surplus

22,271

22,535Retained earnings

128,130

151,744

Total; Current liabilities
Non-current liabilities

Net assets
Shareholders’ equity

△ 613

△ 600

219,182

243,074

Valuation difference on
available-for-sale securities

30,02021,788Deferred gains or losses onhedges△ 495

124

Foreign currency translation
adjustment△ 5,664△ 8,937

Remeasurements of defined
benefit plans△ 6,525△ 8,391

Total; Total accumulated other comprehensive income

17,335

4,584

Non-controlling interests

35,55232,252

Total net assets

272,071

279,911

Total liabilities and net assets

808,632

818,021

Treasury shares
Total shareholders’ equity
Total accumulated othercomprehensive income

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201975

Consolidated Financial Statements

Consolidated Statement of income and Consolidated Statement of Comprehensive income
Consolidated Statement of income (Millions of yen)for the Fisical Year Ended for the Fisical Year Ended
March 31, 2018
March 31, 2019
Net sales
Cost of sales
Gross profit
SG&A

967,333

Selling expenses
G&A expenses

Total; SG&A
Operating income
Interest income
Dividend income
Profit in equity method affiliates
Other
Total; Non-operating income
Interest expenses
Non-operating expenses
Foreign exchange losses
Other
Total; Non-operating expenses
Ordinary income
Gain on disposal of non-current assets
Extraordinary income
Gain on sales of investment securities
Other
Total; Extraordinary income
Loss on disposal of non-current assets
Extraordinary losses
Impairment loss
Provision for product defect compensation
Provision for loss on litigation
Other
Total; Extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total; Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent company
Non-operating income

991,590

801,411824,481

165,921167,108

39,04740,04482,06986,221

121,11744,804

126,266
40,842

654

607

1,910

2,765

4,311

1,685

3,581

1,796

10,457

6,855

3,977

4,075

1,216

1,100

3,158

3,443

8,352
46,9088,619
39,078

9,362

3,779

220

4,952

193

1,154

9,776

9,887

967

2,779

3,122

2,627

7,157

6,364

2,131

－

2,840

1,436

16,21940,466

13,20835,757

8,402

8,811

△ 251

△ 5,500

8,151
32,314
3,767
28,5473,310
32,446
3,338
29,108

Consolidated Statement of Comprehensive income (Millions of yen)for the Fisical Year Ended for the Fisical Year Ended
March 31, 2018
March 31, 201976

Net income

32,31432,446

Valuation difference on available-for-sale securities
Other comprehensive
Deferred gains or losses on hedges
incomeForeign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total; Other comprehensive income
Comprehensive income(Comprehensive income
Comprehensive income attributable toattributable to)owners of parent
Comprehensive income attributable tonon-controlling interests

3,561△ 8,055FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

△ 1,205733

703△ 2,792

1,786△ 1,787524△ 1,408

5,369
37,684△ 13,309

33,455

16,194

4,229

2,943

19,137

Consolidated Statement of Cash Flows(Millions of yen)for the Fisical Year Ended for the Fisical Year Ended
March 31, 2018
March 31, 2019
Profit/Loss before income taxes
Depreciation
Loss (Profit; △ ) in equity method affiliates
Loss (gain; △ ) in sales of marketable securities andinvestment securities
Loss (gain; △ ) on disposal of non-current assets
Impairment loss
Loss on valuation of inventories
Interest and dividend income
Interest expenses
Foreign exchange losses (gains; △ )Decrease (increase; △ ) in notes andaccounts receivable - trade
Decrease (increase; △ ) in inventories
Increase (decrease; △ ) in notes andaccounts payable - trade
Increase (decrease; △ ) in liability for retirement benefits
Increase (decrease; △ ) in provision forenvironmental costs
Increase (decrease; △ ) in provision for
product defect compensation
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid; △ ) refund
Cash flows from operating activities
Decrease (increase; △ ) in time deposits
Cash flows fromPurchase of investment securities
investing activities
Proceeds from sales and redemption of
investment securities
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of non-current assets
Decrease (increase; △ ) in short-term loans receivable
Other
Cash flows from investing activities
Net increase (decrease; △ ) in short-term loans
Cash flows frompayablefinancing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from non-controlling shareholders
Payment for purchase of common treasury stock
Payment for purchase of common treasury stock by
subsidiaries
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease; △ ) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents from newly consolidated subsidiary
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of the year
Cash flows fromoperating activities

40,46625,106△ 4,31135,757
26,271△ 1,685△ 221△ 4,954△ 8,394
3,122
1,297△ 2,564
3,977
△ 137

△ 1,000
2,627
1,366△ 3,373
4,075
△ 111

△ 26,363

1,196△ 9,387△ 11,479

17,057

6,009

△ 142

2,165

△ 1,083

223

6,814

5,785

1,200

△ 7,604

46,43655,271

3,961△ 3,953△ 8,014

4,732△ 4,152△ 9,390

38,42946,460

190
△ 799

767
△ 2,924

526

9,051

72

1,829

－

138

△ 34,349△ 3,533
9,951△ 5,886△ 491△ 43,053△ 3,997
5,515
2,182
△ 550

△ 34,319△ 31,042

875

4,140

19,668△ 17,778
10,000△ 10,000
1,649△326,186△ 31,421－△ 10,000
－
△1

△ 161

△8

△ 3,885△ 1,226△ 1,081△ 5,647△ 2,291△ 372△ 1,943△ 19,414

1,040

853

3,206

△ 3,142

46,147463

49,758
223

△ 59

－

49,75846,838FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201977

Consolidated Financial Statements

Consolidated Statement of changes in net assets
for the Fisical Year Ended March 31, 2018 (Millions of yen)
Shareholders’ equity

Balance at March 31, 2017
Netchangeduringthe yearCommonstock

CapitalsurplusRetainedearnings

69,395

21,562103,942

CommonTotal
treasury shareholders’stockequity△ 633

194,267

Cash dividends paid

△ 3,884△ 3,884

Profit attributable to ownersof parent

28,54728,547

Net effect of decrease inconsolidated subsidiaries

△ 475

△ 475

Acquisition of treasury stock△3△3

Disposal of treasury stock

23

23

Net effect of change inparent’s equity due to transaction with non-controllinginterests

708

708

Net change in items otherthan those in shareholders’equityTotal; Net change during the year
Balance at March 31, 2018－708

24,187

19

24,91569,39522,271

128,130△ 613

219,182

Accumulated other comprehensive income
Total
Unrealized Deferred
NonForeign
Adjustment
accumulated controlling Total net
gain on gain (loss) on
currency
forassetsotheravailable- derivatives
interests
translation retirement
comprehensive
for-sale under hedge
adjustments
benefits
incomesecurities accounting
Balance at March 31, 2017
Netchangeduringthe year717△ 6,756△ 8,138

12,44530,338237,051

Cash dividends paid

△ 3,884

Profit attributable to ownersof parent

28,547

Net effect of decrease inconsolidated subsidiaries△ 475

Acquisition of treasury stock△3

Disposal of treasury stock23

Net effect of change inparent’s equity due to transaction with non-controllinginterests

708

Net change in items otherthan those in shareholders’equity78

26,622

3,398△ 1,213

1,092

1,612

Total; Net change during the year

3,398

△ 1,213

1,092

1,612

4,890

5,213

35,020

Balance at March 31, 2018

30,020△ 495△ 5,664△ 6,525

17,33535,552272,071

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

4,890

5,213

10,104

for the Fisical Year Ended March 31, 2019 (Millions of yen)
Shareholders’ equity

Balance at March 31, 2018
Netchangeduringthe yearCommonstock

CapitalsurplusRetainedearnings

69,39522,271

128,130

CommonTotal
treasury shareholders’stockequity△ 613

219,182

Cash dividends paid

△ 5,649△ 5,649

Profit attributable to ownersof parent

29,108

29,108Net effect of increase inconsolidated subsidiaries

258

258

Net effect of decrease inconsolidated subsidiaries

△ 60

△ 60

Net effect of decrease in an
affiliated company accounted
for by the equity method due tochange in scope of equity method

△ 43

△ 43

Acquisition of treasury stock△1△1

Disposal of treasury stock

15

15

Net effect of change in parent’s
equity due to transaction with
non-controlling interests

264

264

Net change in items other thanthose in shareholders’ equity
Total; Net change during the year
Balance at March 31, 2019－264

23,613

13

23,891

69,39522,535

151,744△ 600

243,074

Accumulated other comprehensive income
Unrealized Deferred
Total
NonForeign
Adjustment
gain on gain (loss) on
accumulated controlling Total net
currency
forassetsavailable- derivatives
otherinterests
translation retirementfor-sale under hedge
comprehensive
adjustments
benefits
securities accounting
incomeBalance at March 31, 2018
Netchangeduringthe year

30,020△ 495△ 5,664△ 6,525

17,33535,552272,071

Cash dividends paid

△ 5,649

Profit attributable to ownersof parent

29,108Net effect of increase inconsolidated subsidiaries

258

Net effect of decrease inconsolidated subsidiaries△ 60

Net effect of decrease in an
affiliated company accounted
for by the equity method due tochange in scope of equity method△ 43

Acquisition of treasury stock△1

Disposal of treasury stock

15

Net effect of change in parent’s
equity due to transaction with
non-controlling interests

264

Net change in items other thanthose in shareholders’ equity△ 8,232620△ 3,273△ 1,866△ 12,750△ 3,300△ 16,050

Total; Net change during the year

△ 8,232620△ 3,273△ 1,866△ 12,750△ 3,300

7,840

Balance at March 31, 201921,788124△ 8,937△ 8,391

4,584

32,252279,911FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201979

Company Profile and Stock / Dividends Information
Company Profile

Domestic Locations (Furukawa Electric Co., Ltd.)

Company Name

Furukawa Electric Co., Ltd.

As of March 31, 2019

President

Keiichi Kobayashi

Founded1884

Established

1896

Paid-in Capital¥69,395 million

Hokkaido Branch(As of March 31, 2019)

Net sales¥991,590 million (Consolidated)(Years ended March 31, 2019)	¥473,626 million

		(Non-Consolidated)

Number of Employees

52,215 (Consolidated)(As of March 31, 2019)

3,816 (Non-Consolidated)

Head OfficeM arunouchi Nakadori Bldg., 2-3,
Marunouchi 2-chome, Chiyoda-ku,
Tokyo 100-8322, JapanTEL.

+81-3-3286-3001

Web sitehttps://www.furukawa.co.jp/

Tohoku Branch
Nikko Works
Copper Foil Division
Head Office
Chiba Works,
Telecommunications & Energy Laboratories

Chugoku Branch

Haneda Office
Kyushu Branch

Chubu Branch
Mie Works
Kansai Branch
Copper Tube Division

Hiratsuka Works
Automotive Products &Electronics Laboratories

General stock information

Distribution of ordinary stock among shareholders

As of March 31, 2019

As of March 31, 2019

Domestic companies, others

Stock Code on theTokyo Stock Exchange

5801

Stock Exchange Listings

Tokyo Stock Exchange, First Section

Number of sharesauthorizedCommon Stock

250,000,000 shares

Common Stock
100 shares (note)

70,666,917 shares

Common stock issued
Minimum trading units

Fiscal year

2-1 Yaesu 1-chome, Chuo-ku,
Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31

Shareholders’ meeting

June each year

Shareholder register
agent(note) W
 e changed the number of shares in a unit of the company’s ordinary sharesfrom 1,000 shares to 100 shares with an effective date of October 1, 2016.

80

Yokohama Works,
Advanced Technologies R&D Laboratories,
Laboratories for Fusion of Core Technologies

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

7.32％
5,175,412 shares

Individuals,
others
27.93％
19,734,073 shares

Foreign corporations
16.72％
11,817,169 shares

Treasury stock
0.07％
48,957 shares

Total number ofshares issued andoutstanding

70,666,917

Financial
Institutions
43.05％
30,423,838 shares

Securities
companies
4.91％
3,467,468 sharesMajor top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
As of March 31, 2019

Name of major shareholders

Number ofsharesShareholding
ratio

6,893,200
5,178,300

9.76%
7.33%

2,413,500

3.42%

2,269,500
1,365,050
1,329,045
1,120,800
1,100,000

3.21%
1.93%
1.88%
1.59%
1.56%

1,091,900

1.55%

1,050,000

1.49%Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd.
(Mizuho Trust & Banking; Employee Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Asahi Mutual Life Insurance Company
FURUKAWA CO., LTD.
Japan Trustee Services Bank, Ltd. (Trust Account 5)
Fuji Electric Co., Ltd.
Trust & Custody Services Bank, Ltd.
(Mizuho Trust & Banking; Employee Retirement Benefit Trust, FURUKAWA CO., LTD. Account)
Trust & Custody Services Bank, Ltd.
(Mizuho Trust & Banking; Employee Retirement Benefit Trust, Asahi Mutual Life Insurance Company Account)(note) 1. Shareholding ratio is calculated with the number which deducted 48,957 shares of the Company’s treasury stock.
2. In addition to the 2,413,500 shares in a retirement benefits trust mentioned above, Mizuho Bank, Ltd. has a further 173 shares in the Company.

Cash dividends per common share（including forecast）
Fiscal year

Interimdividend(yen)

Year-end
dividend
(yen)

Total
dividend
(yen)

2009

2.5

2.5

5.0

2010

2.5

3.0

Highest/Lowest annual stock priceFiscal year

Highest price（yen）

Lowest price
（yen）

2009

499

284

2010

507

241

5.5

2011

341

155

2011

2.5

0

2.5

2012

228

141

2012

0

3.0

3.0

2013

326

194

2013

0

3.0

3.0

2014

259

177

2014

0

3.0

3.0

2015

283

184

2016

4,380 (280)

2,718 (227)

2017

7,230

3,985

2018

5,760

2,453

2015

0

4.0

4.0

2016

0

55(note)55(note)2017

0

80(note)80(note)2018

085(note)85(note)2019 (forecast)0

85(note)85(note)(note) 1. The stock prices are market prices on the first section of the Tokyo Stock
Exchange.
2. W
 e have carried out a reverse stock split at a ratio of 1 share for every 10
ordinary shares with an effective date of October 1, 2016. For the stock
price in fiscal 2016, the highest and lowest stock price after the reverse
stock split are shown, and highest and lowest share prices before thereverse stock split are shown in parentheses.

(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10
ordinary shares with an effective date of October 1, 2016. The amounts if thereverse stock split is not conducted will be, respectively: change 55 yen to 5.5
yen, change 80 yen to 8.0 yen, and change 85 yen to 8.5 yen.

Stock price and trading volume
from April 1, 2009 to March 31, 2019

Closing price (left)(yen, points)

TOPIX (left)

Trading volume (right)(millions of shares)

20

8,000
7,000

15

6,000
5,000

10

4,000
3,000

5

2,000
1,000
0

2009

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10 ordinary shares with an effective date of October 1, 2016. In addition,
the number of shares in unit of the company’s ordinary shares has changed from 1,000 shares to 100 shares. Because of this, in the graph, thepre-September 2016 stock prices are shown as 10 times, and the trading volume is shown as 1/10.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201981

Environmental Certifications and External Evaluations (As of August, 2019)
International standards of the environmental management (ISO14001)
International standards of the environmental management, ISO 14001 are
acquired at 7 works, which have the production function, of Furukawa Electricand 22 domestic group companies. ISO14001 is also acquired at 32 oversea
group companies.
Furukawa Electric Co., Ltd.

Domestic group companies

Chiba WorksNTEC Ltd.

Nikko Works

Okano Electric Wire Co., Ltd.

Hiratsuka Works

Okumura Metals Co., Ltd.

Overseas group companies
Chongqing Changhua Automobile Harness Co., Ltd.
FE Magnet Wire (Malaysia) Sdn. Bhd.
Furukawa Auto Parts (Huizhou) Ltd.
Furukawa Automotive Parts (Dongguan) Ltd.
Furukawa Automotive Parts(Vietnam) Inc.
Furukawa Automotive Systems (Thailand) Co., Ltd.
Furukawa Automotive Systems Lima Philippines, Inc.
Furukawa Automotive Systems（Vietnam）Inc.
Furukawa AVC Electronics (Suzhou) Co., Ltd.

Mie Works

KANZACC Co., Ltd.

Yokohama Works

Shodensha Co., Ltd.

Copper Tube Division

Seiwa Giken Inc.

Furukawa Electric Copper Foil Taiwan Co., Ltd.

Copper Foil Division

TOTOKU Electric Co., Ltd.

Furukawa Electric LatAm S.A.

Foam Kasei Co., Ltd.
Furukawa Automotive Systems Inc.

Furukawa Electric Autoparts Philippines, Inc.

Furukawa Electric (Shenzhen) Co., Ltd.
Furukawa FITEL (Thailand) Co., Ltd.
Furukawa Metal (Thailand) Public Co., Ltd.

Furukawa FITEL Optical Device Co., Ltd.

Furukawa Mexico S.A. de C.V.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Minda Electric Pvt. Ltd.

Furukawa Industrial Plastics Co., Ltd.
Furukawa Precision Engineering Co., Ltd.

Furukawa Precision (Thailand) Co., Ltd.
OFS Fitel Deutschland GmbHOFS FITEL, LLC

Furukawa Techno Material Co., Ltd.

OFS Sviazstroy-1 Fiber Optic Cable Company

Furukawa Electric Industrial Cable Co., Ltd.

Permintex Furukawa Autoparts Malaysia Sdn. Bhd.

Furukawa Electric Power Systems Co., Ltd.
The Furukawa Battery Co., Ltd.

ISO14001 Certification of theMie works, Furukawa Electric

Furukawa Circuit Foil Taiwan Corporation

POLIFOAM MUANYAGFELDOLGOZO KFT
PT. Furukawa Automotive Systems Indonesia
PT. Furukawa Optical Solutions Indonesia

Furukawa Nikko Power Generation Inc.

PT. Tembaga Mulia Semanan, Tbk

Furukawa Logistics Corp.

Shenyang Furukawa Cable Co., Ltd.

Furukawa Magnet Wire Co., Ltd.
Miharu Communications Inc.
Riken Electric Wire Co., Ltd.

Siam Furukawa Co., Ltd.
Suzhou Furukawa Power Optic Cable Co., Ltd.
Taiwan Furukawa Magnet Wire Co., Ltd.
Thai Fiber Optics Co., Ltd.

External Evaluations■E valuation related to the Innovation
Furukawa Electric was selected as “Top 100
Global Innovator” sequentially last year, by the
Clarivate Analytics plc.

E
 valuation related to the Health andProductivity ManagementE valuations related to the woman
empowering and the support forthe development of the next generation

Furukawa Electric was selected as “MSCI Japan
Empowering Woman Index (WIN).

“Eruboshi (L star: L stands for
Lady, Labour and Laudable)” is
acquired continuously from 2016
by the Ministry of Health, Labourand Welfare.

Furukawa Electric was selected
as “The 2019 Health & Productivity Stock Selection” for the first
time.

82

Furukawa Electric was selected
as “Health and Productivity
Management Organization (White
500)” for a third consecutive year.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2019

“Kurumin”— accredited as acompany that actively supports
the development of the next
generation.

List of all applicable companies
Page.

57

Occupational Health and Safety
1 NTEC Ltd.
2 Okano Electric Wire Co., Ltd.
3 Okumura Metals Co., Ltd.
4 KANZACC Co., Ltd.
5 Shodensha Co., Ltd.
6 Seiwa Giken Inc.
7 TOTOKU Electric Co., Ltd.
8 Foam Kasei Co., Ltd.
9 Furukawa Automotive Systems Inc.
10 Furukawa S and D Co., Ltd.
11 Furukawa Elecom Co., Ltd.
12 Furukawa Sangyo Kaisha, Ltd.
13	Furukawa Communication andBroadcasting Co., Ltd.

Page.

60

Scope of the frequency rate of accidents resulting in time off work

35 Domestic group companies

Environmental Management

14 Furukawa Industrial Plastics Co., Ltd.
15 Furukawa Precision Engineering Co., Ltd.
16 Furukawa Techno Material Co., Ltd.
17 Furukawa Research Inc.
18	Furukawa Electric Advanced Engineering
Co., Ltd.
19 Furukawa Electric Ecotec Co., Ltd.
20 Furukawa Electric Industrial Cable Co., Ltd.
21 Furukawa Electric Power Systems Co., Ltd.
22 The Furukawa Battery Co., Ltd.
23 Furukawa Nikko Power Generation Inc.
24 Furukawa New Leaf Co., Ltd.
25 Furukawa Network Solution Corp.
26 Furukawa FITEL Optical Device Co., Ltd.

27	The Furukawa Finance and BusinessSupport Co., Ltd.
28 Furukawa Logistics Corp.
29 Furukawa Magnet Wire Co., Ltd.
30 Furukawa UACJ Memory Disk Co., Ltd.
31 Furukawa Life Service Inc.
32 Miharu Communications Inc.
33 Myojodenki Co., Ltd.
34 Yokohama Drum Manufacturing Co., Ltd.
35 Riken Electric Wire Co., Ltd.

Scope of the environmental management

34 Domestic group companies
1 NTEC Ltd.
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 KANZACC Co., Ltd.
6 Shodensha Co., Ltd.
7 Seiwa Giken Inc.
8 TOTOKU Electric Co., Ltd.
9 FITEC Corp.
10 Foam Kasei Co., Ltd.
11 Furukawa Automotive Systems Inc.
12 Furukawa Elecom Co., Ltd.
13 Furukawa Sangyo Kaisha, Ltd.

14	Furukawa Communication andBroadcasting Co., Ltd.
15 Furukawa Industrial Plastics Co., Ltd.
16 Furukawa Precision Engineering Co., Ltd.
17 Furukawa Techno Material Co., Ltd.
18 Furukawa Research Inc.
19	Furukawa Electric Advanced Engineering
Co., Ltd.
20 Furukawa Electric Ecotec Co., Ltd.
21 Furukawa Electric Industrial Cable Co., Ltd.
22 Furukawa Electric Power Systems Co., Ltd.
23 The Furukawa Battery Co., Ltd.
24 Furukawa Nikko Power Generation Inc.

25 Furukawa New Leaf Co., Ltd.
26 Furukawa Network Solution Corp.
27 Furukawa FITEL Optical Device Co., Ltd.
28	The Furukawa Finance and BusinessSupport Co., Ltd.
29 Furukawa Logistics Corp.
30 Furukawa Magnet Wire Co., Ltd.
31 Furukawa Life Service Inc.
32 Miharu Communications Inc.
33 Myojodenki Co., Ltd.
34 Riken Electric Wire Co., Ltd.

54 Overseas group companies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Page.

61

American Furukawa, Inc.
Chongqing Changhua Automobile Harness Co., Ltd.
FE Magnet Wire (Malaysia) Sdn. Bhd.
Furukawa (Thailand) Co., Ltd.
Furukawa Auto Parts (Huizhou) Co., Ltd.
Furukawa Automotive Parts (Dongguan) Ltd.
Furukawa Automotive Parts (Vietnam) Inc.
Furukawa Automotive Systems (Thailand) Co., Ltd.
Furukawa Automotive Systems Lima Philippines, Inc.
Furukawa Automotive Systems Mexico S.A. de C.V.
Furukawa Automotive Systems Vietnam Inc.
Furukawa AVC Electronics (Suzhou) Co., Ltd.
Furukawa Cabos e Acessorios Ltda.
Furukawa Circuit Foil Taiwan Corporation
Furukawa Electric (Shenzhen) Co., Ltd.
Furukawa Electric Autoparts Central Europe s.r.o.
Furukawa Electric Autoparts Philippines Inc.
Furukawa Electric Copper Foil Taiwan Co., Ltd.
Furukawa Electric Europe Ltd.
Furukawa Electric Hong Kong Ltd.
Furukawa Electric Institute of Technology Ltd.
Furukawa Electric LatAm S.A.
Furukawa Electric Singapore Pte. Ltd.
Furukawa FITEL (Thailand) Co., Ltd.
Furukawa FITEL Optical Products (Shanghai) Co., Ltd.
Furukawa Industrial S.A. Sucursal Argentina
Furukawa Metal (Thailand) Public Co., Ltd.

Environmental Management

28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Furukawa Mexico S.A. De C.V.
Furukawa Precision (Thailand) Co., Ltd.
Furukawa Shanghai, Ltd.
Furukawa Wiring Systems Mexico S.A. de C.V.
HT Italia Holding S.r.l.
OFS Fitel Denmark Aps
OFS FITEL Deutschland GmbHOFS Fitel, LLC
P.T. Furukawa Automotive Systems Indonesia
P.T. Furukawa Optical Solutions Indonesia
P.T. Tembaga Mulia Semanan, Tbk.
Permintex Furukawa Autoparts Malaysia Sdn.Bhd.
Polifoam Plastic Processing Co., Ltd.
Shenyang Furukawa Cable Co., Ltd.
Siam Furukawa Co., Ltd.
SuperPower Inc.
Suzhou Furukawa Power Optic Cable Co., Ltd.
Taiwan Furukawa Electric Co., Ltd.
Taiwan Furukawa Magnet Wire Co., Ltd.
Thai Fiber Optics Co., Ltd.
Thai Furukawa Unicomm Engineering Co., Ltd.
Tianjin Jinhe Electric Engineering Co., Ltd.
Trocellen GmbH
Trocellen Italy S.p.A.
Trocellen S.E.A. Sdn. Bhd.
Wuhan Furukawa Automotive Systems Co., Ltd.
Xin Furukawa Metal (Wuxi) Co., Ltd.

Scope of the environmental accounting

22 Domestic group companies
1
2
3
4
5
6
7
8

FCM Co., Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
KANZACC Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
TOTOKU Electric Co., Ltd.
Foam Kasei Co., Ltd.

9 Furukawa Automotive Systems Inc.
10 Furukawa Sangyo Kaisha, Ltd.
11	Furukawa Communication andBroadcasting Co., Ltd.
12 Furukawa Industrial Plastics Co., Ltd.
13 Furukawa Precision Engineering Co., Ltd.
14 Furukawa Techno Material Co., Ltd.
15	
Furukawa Electric Advanced Engineering Co., Ltd.

16 Furukawa Electric Industrial Cable Co., Ltd.
17 Furukawa Electric Power Systems Co., Ltd.
18 The Furukawa Battery Co., Ltd.
19 Furukawa FITEL Optical Device Co., Ltd.
20 Furukawa Magnet Wire Co., Ltd.
21 Miharu Communications Inc.
22 Riken Electric Wire Co., Ltd.

(note) FCM Co.,Ltd. had been included in this scope untill the end of December 2018.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201983

https://www.furukawa.co.jp/en/

IE-135 199 TR 50