medium-term 米兰ac体育 Management Plan

米兰ac体育 Medium-term 2022~2025
（20米兰ac体育）

Medium-term 2022~2025 (presentation document) Medium-term M米兰体育中国官方网站agement

米兰ac体育
Numerical management targets and allocation of management resources
米兰ac体育

米兰ac体育

Value creation process directed at achieving 米兰ac体育

Formulated 25 Mid-Term Plan as a milestone for achieving 米兰ac体育, which embodies what we will at 2030
Identifying materiality as an important management issue from the perspective of profit opportunities and risks
Promotion of ESG management with the aim of sustainable growth and medium-to long-term improvement of corporate value

Positioning of 20米兰ac体育

As a milestone for achieving 米兰ac体育, directed at 2025

①

Maximize profits in existing businesses through a focus on capital efficiency
②

Build a foundation for creating 米兰ac体育 by strengthening development and proposal capabilities

米兰ac体育 (Each business domain)

Create new value with customers as partners
Solve social issues through that 米兰ac体育’s technology, products and services will "support" and "be utilized"

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Numerical management targets and allocation of management resources

Financial goals

Achieved business growth, improved profitability and capital efficiency (ROIC, ROE)

	米兰ac体育021 result	米兰ac体育025 target
ROIC (after tax)	2.5%	米兰ac体育 6%
ROE	3.7%	米兰ac体育 11%
NetD/E ratio	1.0	Less than 0.8
Capital ratio	29.8%	米兰ac体育 35%
Sales	JPY 930.5 billion	米兰ac体育米兰ac体育,100.0 billion
Operating income	米兰ac体育1.4 billion	米兰ac体育 JPY 58.0 billion
Net income attributable to owners of the parent	米兰ac体育0.1 billion	米兰ac体育 JPY 37.0 billion
Average copper price (JPY/Kg)	1,136	1,085
Average exchange rate (JPY/dollar)	112	110

20米兰ac体育 target (net sales, operating income) by segment

(JPY billion)
Electronics & Automotive Systems	500.7	0.1	0.0%	590.0	23.5	4.0%
	米兰ac体育021 result			米兰ac体育025 target
	Sales	Operating income	Ratio	Sales	Operating income	Ratio
Infrastructure	297.0	5.2	1.7%	360.0	16.0	4.4%
Communications Solutions	191.3	3.8	2.0%	230.0	11.5	5.0%
Energy Infrastructure	105.7	1.4	1.3%	130.0	4.5	3.5%
Automotive Products & Batteries	249.9	▲4.6	▲1.9%	330	16.5	5.0%
Electronics Component Materials	250.8	4.8	1.9%	260.0	7.0	2.7%
Functional Products^(Note)	130.0	7.6	5.8%	165.0	19.5	11.8%
Service and Developments, etc.	34.5	▲1.4	▲4.0%	40.0	▲1.0	▲2.5%
Total	930.5	11.4	1.2%	1,115.0	58.0	5.2%

（Note） Including special factor: the deconsolidation of the TOTOKU from 米兰ac体育022Q4.
米兰ac体育025 target excluding special factor (reference): JPY 143.3 billion in sales, JPY 15.3 billion in operating income, 10.7% in operating income ratio

Business portfolio optimization and allocation of management resources

Furukawa Electric Group's target for 米兰ac体育025: ROIC more than 6%

Furukawa Electric (group total) and each sub-segment (米兰ac体育1 actual ➡ 米兰ac体育5 target)

Business portfolio optimization and allocation of management resources (CAPEX / strategic investment)

Based on the positioning of the business, implement controlled execution of well-defined investments
Secured investments in DX and environmental responses from a companywide perspective

Capital and cash allocation policy

Through investment in growth domains and securing a financial foundation for achieving growth, aim to sustainably increase corporate value
Stable and ongoing shareholder returns as a basic policy and will issue a performance linked dividend based on a payout 米兰ac体育 about 30% of consolidated net income attributable to owners of the parent company

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米兰ac体育

Strengthen the corporate functions that support business growth

Set the priority “materiality” directed at achieving 米兰ac体育
Set “sustainability indicators and targets” to be achieved during the 20米兰ac体育

Sustainability Indicators

By achieving the sustainability indicators that contribute to resolving the materiality, aim to achieve 米兰ac体育.

Materiality					米兰ac体育021 result	米兰ac体育025 target
Revenue Opportunity	1	Createing businesses that solve social issues	Sales 米兰ac体育 environmentally friendly products	Consolidated	61.9%	70%
	2	Open, Agile Innovative/ Building partnerships with various stakeholders	R&D expense growth rate for new businesses (compared to 米兰ac体育021)	Consolidated	（100％）	125%
	3		Implementation rate of IP landscaping for strengthening the businesses and themes for creating 米兰ac体育	Consolidated	17%	100% ^(Note1)
Risk	E	Developing business activities that consider climate change	GHG emissions reduction rate (Scope 1,2) (Compared to 米兰ac体育017)	Consolidated	▲29.0%	(▲42%) ^(Note2)
			GHG emissions reduction rate (Scope 1,2) (Compared to 米兰ac体育021)	Consolidated	ー	▲18.7％^(Note3)
			米兰ac体育 renewable energy use to total consumption	Consolidated	10.9%	30% ^(Note3)
	S	Strengthening human capital and organizational execution abilities	Employee engagement scores^(Note4)	Consolidated	ー	80
			米兰ac体育 female managers	Non- consolidated	3.8％	7%
			米兰ac体育 mid-career hires in total new hires(management, career-track, and clerial positions)^(Note5)	Non- consolidated	36%	30%
	G	Building a governance system to strengthen risk management	米兰ac体育 follow-up on risk management activities for all risk domains	Consolidated	88%	100%
			米兰ac体育 SAQ implementation based on the CSR Procurement Guidelines for major suppliers	Consolidated	Non- consolidated 20％	100%
			Implementation rate of human rights training for managerial positions^(Note6)	Consolidated	ー	100%

(Note1) This means that all projects have been implemented with respect to the business enhancement and new business creation themes set as of 2022.

(Note2) Base year was updated to 米兰ac体育021 upon the revision of Environmental Targets 2030; the reduction target value when applied to the former base year of 米兰ac体育017 is also shown for reference.

(Note3) Target value for 米兰ac体育025 was updated upon the revision of Environmental Targets 2030.

(Note4) Target value for 米兰ac体育025 was newly set in 米兰ac体育022.

(Note5) This means that about 30% will be maintained in each fiscal year.

(Note6) Started measuring from 米兰ac体育022 and this means that 100% globally for each fiscal year will be continued.

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May 15, 2024