Summary of 2020 medium-term management plan

Although there are still issues in regards to securing the earnings ability of the businesses, we made progress in the key initiatives.

In addition, we formulated a vision for 2030, and accelerated the full-scale measures for ESG management.

Key initiatives Results Issues / Future actions
(1) Strengthen and transform the businesses
  • Revised the business portfolio
  • KPI management using return on operating assets
  • Established the activities of the Transformation Division

    (Target businesses: Global Fiber & Cable, Energy Infrastructure, Copper & High Performance Material Products)

  • Insufficient expansion of the key businesses (Communications Solutions)
  • Response to low-margin businesses & sites (Continued)
  • Expand the Transformation Division activities within the group
(2) Expand sales in the global market
  • Expanded sales and enhanced the manufacturing sites
  • Created a foothold for expanding the sales area through the establishment of marketing regional headquarters

    (in Southeast Asia, China)

  • Insufficient net sales growth overseas (FY2020 target: JPY 550 billion)
    (FY2019: JPY 418.8 billion, FY2020: JPY 376.4 billion)
  • Expand the optical fiber and cable business
(3) Accelerate the creation of new businesses
  • Strengthened the frameworks for co-creation
  • Strengthened the creation of new businesses
  • Fostered new businesses through co-creation and sowed the seeds of new businesses
  • Clarify the key domains
    Going forward, the Social Design & New Business Development Department (newly established in April 2021) will be responsible for execution, and efforts will be made to accelerate the creation of products and businesses under this new organizational framework

FY2021 management policy

With respect to the next medium-term management plan which was supposed to start from FY2021, since the management environment surrounding the Furukawa Electric group significantly changed due to the COVID-19 pandemic, we suspended the formulation of the plan, and postponed the start of the plan until next year.

In FY2021, we will become a stronger company and make definite preparations for the 2025 medium-term management plan. In addition, we will implement mainly the following initiatives.

  • Transform the businesses
    Strengthen the key businesses and continue to revise the business portfolio through responses to the low-margin and non-core businesses
  • Establish and foster new businesses
    Create environment-friendly businesses and businesses that solve social issues
  • Strengthen management focus on capital efficiency
    Evolve the “return on operating assets” used as an indicator in the 2020 medium-term management plan, and shift to target management with a focus on capital efficiency and greater awareness of “cost of capital”

Strategies directed at growing the main businesses

(1) Information transmission infrastructure that can handle increased data traffic

Following advances in 5G, data traffic will increase over the medium to long-term.

We will support the growth of information transmission infrastructure such as base stations and data centers through a wide range of products.

Social issues:

Advances in 5G/B5G, Increased communications traffic

Sales (estimate)(note) (FY2020: About JPY 180 billion)

(note) Excluding sales of some products that are difficult to categorize

Communications Solutions

Optical fiber and cable (Optical cabling solutions)

Rollable ribbon cable

Multicore cable connectors

Optical fiber fusion splicer

Optical devices

Functional Products

Aluminum blanks for HDD
Used at data centers

Thermal management products
Used at data centers

Tape for semiconductor process
Used in the semiconductor wafer process

Electrolytic copper foil for printed wiring boards
Used in telecommunications devices such as servers and routers

Energy Infrastructure (Industrial cable & power cable accessories)

Used at data centers

Used at data centers

Heat dissipation sheets
Used at data centers

Electronics Component Materials

Copper strips for power semiconductors and submarine optical fiber cable

Oxygen-free copper strips (GOFC)

(2) Focus on renewable energy related business

Directed at achieving carbon neutral in 2050, based on a policy of maximizing the use of renewable energy, mainly offshore wind power installation will expand in Japan.

We will provide a product lineup that supports this growing market, including solar power.

Social issues:

Realize a carbon-free society

Realize tougher infrastructure

Sales (Estimate)(note)(FY2020: About JPY 10 billion)

(note) Excluding sales of some products that are difficult to categorize

Energy Infrastructure

Power cable
Extra-high voltage and high voltage underground power cable, components and installation

Power cable
Submarine power cable and installation

Various cables
Used in solar power modules

Aluminum conductor cable
Used at solar power stations

Functional Products

Green troughs
Used at solar power stations

Thermal management products
Used in solar power inverters, etc.

Electronics Component Materials

Copper strips for cable

Ultra-thin SUS wire
For screen printing of electrodes for solar power panels

(3) Expand and create automotive products that support advances in vehicle electrification and autonomous driving

In response to the demands to protect the environment and ensure safety, we will contribute to lightweight, power supply management and vehicle electrification through product lineups that include materials technology.

Social issues:

  • Realize a carbon-free society

  • Realize tougher traffic infrastructure

  • Reduce traffic accidents

Sales (Estimate)(note)(FY2020: About JPY 250 billion)

(note) Excluding sales of some products that are difficult to categorize

Automotive Products

Battery state sensor (BSS)

Aluminum harnesses Corrosion-proof (α) terminal

High voltage harnesses
High voltage products

Peripheral monitoring radar

Steering roll connector (SRC)

Products using flat cable (SDH/LSH)

Electronics Component Materials
(Copper/ aluminum wire, oxygen-free copper, thin copper strips, etc.)

Conductor substrate for wire harnesses (copper, aluminum)

Resistor material for shunt resistance

Sn plated strips for BSS terminal/corrosion-proof (α) terminal

Oxygen-free copper for electric motors

New businesses

Example: Industrial lasers

-Commercialize technology that contributes to achieving carbon neutral-

Directed at further market penetration of xEV, aim to be the de facto standard for copper processing through co-creation with Nichia Corporation.

Business alliance

With consideration for a potential JV in the future, consolidate module manufacturing to Tokushima

Joint development

Develop a next generation blue laser diode module

Joint operations

Establish and operate a joint laboratory within the Yokohama Research Center*

* Nichia Corporation

Example: Life sciences business

-Challenge life sciences businesses directed at “Good Health and Well-being”-

In preparation for the era of “100 year life expectancy”, utilize the core technologies to protect human “health”.

  • Utilizing photonics technology, focus on the three areas of “Find using light, measure using light and cauterize using light”
  • Including the partnership with Atonarp Inc., strengthen the co-creation alliances with industry and academia

Find using light

Medical device for internal detection

Measure using light

OCT (optical coherence tomography)

Cauterize using light

Ablation treatment

Accelerate ESG management
– Initiatives to address climate change

We will promote initiatives that contribute to reducing CO2 emissions throughout the value chain.