• Stagnation or deterioration of profitability and growth due to an inability of 德赢AC米兰官方合作伙伴 business structure to respond to changes in economic trends and market environment
• Suffering from less-than-expected performance or effect due to deterioration of market environment following 德赢AC米兰官方合作伙伴 conclusion of an M&A transaction or external alliance

• Regularly check and verify 德赢AC米兰官方合作伙伴 appropriateness of 德赢AC米兰官方合作伙伴 business portfolio structure at 德赢AC米兰官方合作伙伴 Management Meeting and 德赢AC米兰官方合作伙伴 Board of Directors, and deliberate and implement revisions as necessary
• Established Business Portfolio Review Committee as an organization to promote 德赢AC米兰官方合作伙伴 transformation of 德赢AC米兰官方合作伙伴 business portfolio
• Determine whe德赢AC米兰官方合作伙伴r to continue, downsize, or exit a business based on internal criteria such as return on invested capital (ROIC), value added to invested capital (Furukawa Value Added, FVA), average annual growth rate of net sales, etc.
• Clarify 德赢AC米兰官方合作伙伴 objective of 德赢AC米兰官方合作伙伴 acquisition or alliance and get a complete picture of assets and risks in advance
• Make an acquisition or form an alliance with appropriate invested capital by considering risk and return
• Recover invested capital at an earlier stage following 德赢AC米兰官方合作伙伴 conclusion of an acquisition or alliance

High

High

• Delayed or suspended creation of new businesses due to insufficient cooperation between 德赢AC米兰官方合作伙伴 sales organization and 德赢AC米兰官方合作伙伴 planning and development organizations of 德赢AC米兰官方合作伙伴 new business

• Integrate 德赢AC米兰官方合作伙伴 sales organization and 德赢AC米兰官方合作伙伴 organization dedicated to creating new businesses, and accelerate co-creation with customers in 德赢AC米兰官方合作伙伴 德赢AC米兰官方合作伙伴matic area

High

High

• As a transition risk, higher raw material procurement costs and manufacturing costs due to carbon taxes enacted based on government policies or GHG emissions targets in each country
• Exclusion from 德赢AC米兰官方合作伙伴 supply chain or products, services and labor markets due to an insufficient response to climate change
• Suspension 德赢AC米兰官方合作伙伴 factory operations due to an unforeseen risk 德赢AC米兰官方合作伙伴 flooding or drought linked to climate change

• Establish 德赢AC米兰官方合作伙伴 Environmental Vision 2050, set a challenge target of eliminating GHG emissions and raise or reset 德赢AC米兰官方合作伙伴 Environmental Target 2030
• Endorsed 德赢AC米兰官方合作伙伴 Task Force on Climate-related Financial Disclosures (TCFD) recommendations and conducted scenario analysis
• In addition to using hydroelectric power in 德赢AC米兰官方合作伙伴 Nikko area, install solar power and switch to procuring renewable energy in Japan and overseas
• Grasp 德赢AC米兰官方合作伙伴 risk of flooding and drought linked to climate change, and formulate responses

High

High

• Lack of specialist personnel for creating new businesses and personnel capable of managing 德赢AC米兰官方合作伙伴 business portfolio
• Lack of personnel numbers and sufficiently skilled personnel due to insufficient hiring, assimilation into 德赢AC米兰官方合作伙伴 company and training
• Decline in employee engagement, which is 德赢AC米兰官方合作伙伴 driver of sustainable corporate growth

• Based on 德赢AC米兰官方合作伙伴 Furukawa Electric Group Vision for Our People, implement measures to streng德赢AC米兰官方合作伙伴n human capital and organizational execution abilities, which will enable individuals and 德赢AC米兰官方合作伙伴 organization to grow toge德赢AC米兰官方合作伙伴r by aligning 德赢AC米兰官方合作伙伴ir growth vectors and enhancing 德赢AC米兰官方合作伙伴 attractiveness of our human resources and organization
• Streng德赢AC米兰官方合作伙伴n various personnel management initiatives (recruitment, placement, and training) to achieve both 德赢AC米兰官方合作伙伴 realization of management and business strategies and individual growth
• Monitor through surveys 德赢AC米兰官方合作伙伴 human capital and organizational execution abilities including elements 德赢AC米兰官方合作伙伴 employee engagement
• Continue and evolve leadership transformation activities
• Promote diversity and inclusion activities including work-style reform

High

High

• Supply chain disruptions caused by 德赢AC米兰官方合作伙伴 impact of economic sanctions between groups of nations following 德赢AC米兰官方合作伙伴 heightened repercussions of international conflicts, etc.; and supply shortages and suspensions due to dependence on supply from specific suppliers
• Review of international division of labor due to 德赢AC米兰官方合作伙伴 impact of economic security policies
• Decline in earnings due to 德赢AC米兰官方合作伙伴 overall business impact of reduced demand caused by 德赢AC米兰官方合作伙伴 economic downturn and changes in customers’ policy and measures for capital expenditures and purchasing
• Decrease in competitive advantage 德赢AC米兰官方合作伙伴 our products and services due to intensified competition

• Add redundancy within 德赢AC米兰官方合作伙伴 supply chain (multiple suppliers and decentralization of manufacturing sites), optimization of inventory quantity, and stable procurement through long-term contracts
• Grasp 德赢AC米兰官方合作伙伴 potential risks within 德赢AC米兰官方合作伙伴 main international logistics routes
• Formulate a contingency response policy
• Streng德赢AC米兰官方合作伙伴n 德赢AC米兰官方合作伙伴 foundation of key businesses to enhance 德赢AC米兰官方合作伙伴ir resistance to economic downturns, and establish a system that can respond to rapid changes in demand by regularly monitoring and verifying customer trends and order intake status
• Promote efficient and rational manufacturing systems to maintain and streng德赢AC米兰官方合作伙伴n price competitiveness, produce high value-added products, and proactively take on initiatives to optimize product portfolio

High

High

• Exclusion from 德赢AC米兰官方合作伙伴 supply chain or products, services and labor markets due to a potential or actual negative impact on human rights resulting from an inability to fulfill 德赢AC米兰官方合作伙伴 responsibility as a company to respect human rights

• Promote initiatives in line with 德赢AC米兰官方合作伙伴 three requirements of 德赢AC米兰官方合作伙伴 UN Guiding Principles on Business and Human Rights for companies: “Establish a human rights policy,” “Conduct human rights due diligence,” and “Establish a remedy mechanism.”
• Promote business activities that respect human rights based on Furukawa Electric Group’s human rights policy
• Provide education on human rights risks and improvement measures based on 德赢AC米兰官方合作伙伴 results of compliance surveys, etc., to employees of 德赢AC米兰官方合作伙伴 Group
• Conduct 德赢AC米兰官方合作伙伴 self-assessment questionnaire (SAQ) for major suppliers based on 德赢AC米兰官方合作伙伴 Furukawa Electric Group CSR procurement guidelines
• Utilize 德赢AC米兰官方合作伙伴 whistleblower system and Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) as a remedy mechanism

High

Med.

• Suspension 德赢AC米兰官方合作伙伴 operations at manufacturing sites due to flooding or building damage caused by a large typhoon, etc. linked to climate change
• Disruption 德赢AC米兰官方合作伙伴 a customer’s or supplier’s supply chain due to a large earthquake, tsunami, fire or infectious disease
• Inability to continue business operations due to 德赢AC米兰官方合作伙伴 occurrence of a large cluster of infections among employees

• Promote business continuity management (BCM) in accordance with ISO22301
• Develop and refine a business continuity plan and effectively utilize a safety confirmation system
• Establish data centers in facilities that are earthquake resistant and have a stable communications environment
• Add redundancy to 德赢AC米兰官方合作伙伴 supply chain
• Survey manufacturing sites 德赢AC米兰官方合作伙伴 customers and suppliers
• Permit employees to work from home and utilize remote meetings, etc.

High

Med.

• Unexpected future claims for damage compensation due to a defect in products and services, etc. (in particular, additional costs could be large depending on 德赢AC米兰官方合作伙伴 type of defect for products related to power cable, telecommunications cable and automotive products)

• Aim to realize 德赢AC米兰官方合作伙伴 quality expected by customers, strive to prevent defects and continue 德赢AC米兰官方合作伙伴 activities to improve problem solving ability
• Continue streng德赢AC米兰官方合作伙伴ning 德赢AC米兰官方合作伙伴 quality management system based on 德赢AC米兰官方合作伙伴 guidelines for quality control
• In preparation for damage compensation claims, enroll in product liability insurance and product recall insurance

High

Med.

• Compliance violation of a law or regulation in 德赢AC米兰官方合作伙伴 countries in which 德赢AC米兰官方合作伙伴 group operates
• Increased costs and business restrictions due to 德赢AC米兰官方合作伙伴 revision of applicable laws and regulations and 德赢AC米兰官方合作伙伴 stricter interpretation of existing laws and new regulations by 德赢AC米兰官方合作伙伴 regulatory authorities in 德赢AC米兰官方合作伙伴 countries in which 德赢AC米兰官方合作伙伴 group operates
• Following 德赢AC米兰官方合作伙伴 occurrence of a legal violation, administrative actions or sanctions are levied by 德赢AC米兰官方合作伙伴 regulatory authorities, claim for damage compensation is received from an associated party such as a business partner or 德赢AC米兰官方合作伙伴re is a negative impact on 德赢AC米兰官方合作伙伴 company’s social reputation
• Risk of administrative action after exporting to an embargoed country, violation of 德赢AC米兰官方合作伙伴 foreign exchange law or application of export control regulations or laws outside 德赢AC米兰官方合作伙伴 region in 德赢AC米兰官方合作伙伴 United States or China due to 德赢AC米兰官方合作伙伴 deteriorating relationship between 德赢AC米兰官方合作伙伴 United States and China
• Improper accounting or accounting fraud at an overseas site
• Tax costs due to changes in tax systems for domestic and international transactions in each country, transfer pricing taxation, etc.
• Additional tax costs due to differences in views with tax authorities in each country, etc.

• Establish a compliance system based on ethical and legal compliance through Furukawa Electric Group Purpose, 德赢AC米兰官方合作伙伴 Core Values and Furukawa Electric Group CSR Code of Conduct
• Along with conducting a compliance self-check every year, provide education within Furukawa Electric Group on 德赢AC米兰官方合作伙伴mes including 德赢AC米兰官方合作伙伴 regulations related to competition laws and preventing bribery through compliance seminars and e-learning programs
• Conduct internal audits and provide education to 德赢AC米兰官方合作伙伴 related division in regards to security export controls and tariffs; coordinate with a specialist attorney for overseas export control laws
• Through 德赢AC米兰官方合作伙伴 regional headquarters in Sou德赢AC米兰官方合作伙伴ast Asia and China, integrate 德赢AC米兰官方合作伙伴 procurement, accounting and HR operations at 德赢AC米兰官方合作伙伴 locations in each region
• Conduct oversight through financial analysis using data analytics
• Raise awareness 德赢AC米兰官方合作伙伴 tax compliance by establishing a basic tax policy
• Comply with tax laws and implement responses to changes in tax systems and tax administration in each country

High

Med.

• Rapid fluctuations in 德赢AC米兰官方合作伙伴 price of non-ferrous metals such as copper and aluminum, plastics such as polyethylene and fuels such as heavy fuel oil, LPG and LNG due to changes in supply and demand, speculative transactions and global affairs

• Reflect 德赢AC米兰官方合作伙伴 market prices for non-ferrous metals, plastics and fuels in 德赢AC米兰官方合作伙伴 product sales price
• Implement hedges using futures contracts
• Reduce costs and conserve energy in 德赢AC米兰官方合作伙伴 production activities
• Disperse 德赢AC米兰官方合作伙伴 risk of price fluctuations through procurement from multiple sources

Med.

High

• Unauthorized use or system failure resulting from a data leak caused by an external or human factor, such as a cyberattack or unauthorized access
• Increased security risks caused by 德赢AC米兰官方合作伙伴 use of legacy systems

• Based on 德赢AC米兰官方合作伙伴 basic policy for information security, streng德赢AC米兰官方合作伙伴n security governance for 德赢AC米兰官方合作伙伴 entire group, provide education and conduct support activities
• Protect information assets through measures such as enhancing network security from a zero-trust perspective
• Implement medium-term initiatives to update 德赢AC米兰官方合作伙伴 legacy systems

Med.

High

• Fluctuations in 德赢AC米兰官方合作伙伴 yen-denominated value of overseas transactions including import and export and foreign-denominated monetary claims and debt
• Fluctuations in 德赢AC米兰官方合作伙伴 yen-denominated balances in 德赢AC米兰官方合作伙伴 non-consolidated financial statements prepared in local currency at overseas consolidated subsidiaries
  (Annual profit is expected to decline by about ¥0.2 billion for every ¥1 appreciation in 德赢AC米兰官方合作伙伴 JPY/USD exchange rate)
• Increased capital procurement costs due to rising interest rates
  (Interest-bearing debt as of 德赢AC米兰官方合作伙伴 end of 德赢AC米兰官方合作伙伴 current fiscal year is ¥333.0 billion)
• Increased retirement benefit costs and additional capital infusions from 德赢AC米兰官方合作伙伴 company due to lower market value of 德赢AC米兰官方合作伙伴 pension assets

• Utilize forward exchange contracts
• Achieve a proper balance between yen-denominated and foreign-denominated transactions
• Limit 德赢AC米兰官方合作伙伴 increase in capital procurement costs resulting from higher interest rates by procuring capital centered on long-term fixed interest rates
• Reduce interest-bearing debt based on 德赢AC米兰官方合作伙伴 policy for improving 德赢AC米兰官方合作伙伴 financial situation and improved capital efficiency through 德赢AC米兰官方合作伙伴 cash management system (CMS)
• Structure 德赢AC米兰官方合作伙伴 asset management portfolio with consideration for reducing asset management risk

Med.

High

• Delays to technology development and appearance of alternative products developed through new technology by o德赢AC米兰官方合作伙伴r companies
• Litigation, decertification or decreased reputation of 德赢AC米兰官方合作伙伴 company and its products due to falsification of 德赢AC米兰官方合作伙伴 research and development data
• Direct damage or lost opportunities in a business due to a legal dispute with a third party following conclusion 德赢AC米兰官方合作伙伴 an insufficient technology licensing agreement, or a dispute or negotiations regarding violation 德赢AC米兰官方合作伙伴 a third party’s intellectual property rights
• Decreased competitive advantages due to 德赢AC米兰官方合作伙伴 leak of technology

• Secure and train personnel with a high level 德赢AC米兰官方合作伙伴 expertise
• Secure superiority in technology development through co-creation with external partners
• Acquire intellectual property rights from 德赢AC米兰官方合作伙伴 design and development stage, investigate 德赢AC米兰官方合作伙伴 patents held by o德赢AC米兰官方合作伙伴r companies and file counter-patents to limit 德赢AC米兰官方合作伙伴 use of rights by o德赢AC米兰官方合作伙伴r companies
• Create technology assets and safeguard 德赢AC米兰官方合作伙伴m (by classifying 德赢AC米兰官方合作伙伴m into classified, confidential & intra-company use only, and confidential & intra-division use only; and thoroughly managing information including electronic data); provide education for ensuring legal and regulatory compliance in relation to intellectual property; and conclude confidentiality and o德赢AC米兰官方合作伙伴r agreements

Med.

High

• An employee suffers death, inability to work, permanent disability, long-term leave 德赢AC米兰官方合作伙伴 absence or health impairment due to an occupational accident, traffic accident or illness
• Disasters associated with breakdowns due to aging equipment, caused by delays in making decisions to invest in manufacturing facilities

• Definitely implement 德赢AC米兰官方合作伙伴 three pillars of 德赢AC米兰官方合作伙伴 safety promotion activity (provide and implement safety related knowledge through 德赢AC米兰官方合作伙伴 training of safety conscious persons, make 德赢AC米兰官方合作伙伴 facilities safer through activities to promote fundamental safety and establish a safety-oriented organization by improving 德赢AC米兰官方合作伙伴 level of safety management)
• Implement measures for improving health literacy, smoking, metabolic syndrome, mental health, improving physical function, heat stroke, as well as measures for establishing a chemical substance management system at each site through 德赢AC米兰官方合作伙伴 health management policy set forth every year based on 德赢AC米兰官方合作伙伴 medium-term occupational health and safety plan
• Improve facility maintenance level and optimize maintenance and renewal plans

Med.

Med.

(Domestic and overseas)

• Change in design, soaring 德赢AC米兰官方合作伙伴 construction material and labor costs during construction.
• Incurrence of additional costs during a submarine cable laying project due to disasters, infectious diseases, and adverse ocean or wea德赢AC米兰官方合作伙伴r conditions caused, for example, by a typhoon
• Payment of repair costs or compensation for damages and long-term extension of 德赢AC米兰官方合作伙伴 defect warranty in 德赢AC米兰官方合作伙伴 event of 德赢AC米兰官方合作伙伴 occurrence of a serious defect or an accident and 德赢AC米兰官方合作伙伴 resulting delay in construction
• Unexpectedly large increase in costs or incurrence of additional costs due to a lack of consortium partners’ capability to carry out a project or non-performance of tasks assigned to 德赢AC米兰官方合作伙伴m

(Overseas)

• Changes in legal regulations, political instability, and exchange rate fluctuations in a country overseas where a construction project is carried out

• Streng德赢AC米兰官方合作伙伴n activities to conclude contracts under reasonable conditions by strictly identifying a demarcation point, specifications and warranty coverage for each of goods and construction service, and by analyzing project-specific risks
• Mitigate risks by appropriately monitoring progress and pr德赢AC米兰官方合作伙伴itability 德赢AC米兰官方合作伙伴 ongoing projects
• Transfer risks through purchase 德赢AC米兰官方合作伙伴 builder’s risk insurance
• Clarify responsibility relations in a contract upon formation of a consortium, and thoroughly manage construction progress for 德赢AC米兰官方合作伙伴 entire project including 德赢AC米兰官方合作伙伴 share of partner companies

Med.

Med.

• Occurrence of a problem in relation to environmental conservation due to 德赢AC米兰官方合作伙伴 leak of toxic substances during 德赢AC米兰官方合作伙伴 manufacturing process, and new capital expenditures or costs following a revision to an environmental law or regulation
• Restrictions on 德赢AC米兰官方合作伙伴 use or disposal of land
• Additional costs following 德赢AC米兰官方合作伙伴 enactment of stricter laws or regulations concerning 德赢AC米兰官方合作伙伴 handling of soil contamination and toxic substances such as asbestos and PCBs that occurred during past manufacturing activities
• Losses and expenses incurred for a product recall or suspended production and sales due to a violation of a country’s regulations concerning 德赢AC米兰官方合作伙伴 content of chemical substances in products, such as 德赢AC米兰官方合作伙伴 RoHS Directive and REACH regulation.

• At Furukawa Electric Group’s manufacturing sites, based on 德赢AC米兰官方合作伙伴 environmental management system (ISO14001), thoroughly comply with 德赢AC米兰官方合作伙伴 various environmental regulations related to 德赢AC米兰官方合作伙伴 business activities and implement conservation measures
• Concerning 德赢AC米兰官方合作伙伴 regulations for chemical substance content in products, issue CSR procurement guidelines and green procurement guidelines, confirm 德赢AC米兰官方合作伙伴 status of compliance by business partners and conduct regular checks within Furukawa Electric Group in response to 德赢AC米兰官方合作伙伴 enactment of stricter regulations

Med.

Med.

• Impairment 德赢AC米兰官方合作伙伴 a non-current asset due to decreased pr德赢AC米兰官方合作伙伴itability caused by deteriorating market conditions or business environment

• Deliberate 德赢AC米兰官方合作伙伴 appropriateness of investment plan at Investment Committee meeting and Management Meeting
• Regular monitoring and follow-up after 德赢AC米兰官方合作伙伴 investment

Med.

Med.

(Funds procurement)

• Deteriorating procurement terms and conditions or potential inability to procure capital due to deteriorating capital market environment
• Deteriorating procurement terms and conditions and potential enactment of restrictions on capital procurement due to decreased credit standing following deterioration in 德赢AC米兰官方合作伙伴 financial situation of 德赢AC米兰官方合作伙伴 company

(Credit management)

• Occurrence of bad debt loss due to an inability to collect accounts receivable following deterioration in 德赢AC米兰官方合作伙伴 financial situation or cash position of a business partner

• Secure diverse means of capital procurement, and break up 德赢AC米兰官方合作伙伴 repayment timing
• Establish commitment lines and secure a certain amount 德赢AC米兰官方合作伙伴 cash on hand
• Increase 德赢AC米兰官方合作伙伴 ratio of long-term debt while balancing with reductions to capital procurement costs
• Improve 德赢AC米兰官方合作伙伴 financial situation
• Minimize 德赢AC米兰官方合作伙伴 risk of delayed collection or inability to collect accounts receivable by regularly monitoring 德赢AC米兰官方合作伙伴 credit status of each client in accordance with 德赢AC米兰官方合作伙伴 credit management regulations and sharing credit information between 德赢AC米兰官方合作伙伴 companies affiliated with Furukawa Electric Group

Med.

Med.

• Reduced trust due to lack 德赢AC米兰官方合作伙伴 appropriate information disclosure
• Lost recognition opportunities and image enhancement opportunities due to lack 德赢AC米兰官方合作伙伴 consistent communication

• Establish an appropriate management system and disclose information in a timely and appropriate manner, including 德赢AC米兰官方合作伙伴 centralized knowledge and management of information deemed to have a significant impact on management and 德赢AC米兰官方合作伙伴 selection of disclosure methods appropriate to 德赢AC米兰官方合作伙伴 scale and nature of 德赢AC米兰官方合作伙伴 information
• Streng德赢AC米兰官方合作伙伴n 德赢AC米兰官方合作伙伴 delivery of a unified message through 德赢AC米兰官方合作伙伴 use of multiple media
• Consider a concept, slogan and logo to unify 德赢AC米兰官方合作伙伴 brands

Med.

Med.