Furukawa Electric Group Medium-term 2022~2025
(2025 Mid-term Plan)

Road to Vision 2030 Transform and Challenge

Vision 2030 and positioning of 2025 Mid-term Plan

Value creation process directed at achieving Vision 2030

  • Formulated 25 Mid-Term Plan as a milestone for achieving Vision 2030, 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 2025 Mid-term Plan

As a milestone for achieving Vision 2030, directed at 2025
  • Maximize profits in existing businesses through a focus on capital efficiency
  • Build a foundation for creating new businesses by strengthening development and proposal capabilities

Vision 2030 (Each business domain)

  • Create new value with customers as partners
  • Solve social issues through that Furukawa Electric Group’s technology, products and services will "support" and "be utilized"

Numerical management targets and allocation of management resources

Financial goals

  • Achieved business growth, improved profitability and capital efficiency (ROIC, ROE)
FY2021 result FY2025 target
ROIC (after tax) 2.5%
More than 6%
ROE 3.7% More than 11%
NetD/E ratio 1.0 Less than 0.8
Capital ratio 29.8% More than 35%
Sales JPY 930.5 billion More than
JPY 1,100.0 billion
Operating income JPY 11.4 billion More than
JPY 58.0 billion
Net income attributable to
owners of the parent
JPY 10.1 billion More than
JPY 37.0 billion
Average copper price (JPY/Kg) 1,136 1,085
Average exchange rate (JPY/dollar) 112 110

2025 Mid-term plan target (net sales, operating income) by segment

(JPY billion)
FY2021 result FY2025 target
Sales Operating
Ratio Sales Operating
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%
Electronics & Automotive Systems 500.7 0.1 0.0% 590.0 23.5 4.0%

Automotive Products & Batteries

249.9 ▲4.6 ▲1.9% 330 16.5 5.0%

Electronics Component

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 FY2022Q4.
FY2025 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 FY2025: ROIC more than 6%

Furukawa Electric (group total) and each sub-segment (FY21 actual ➡ FY25 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 ratio of about 30% of consolidated net income attributable to owners of the parent company

Strengthen the foundation for ESG management

Strengthen the corporate functions that support business growth

  • Set the priority “materiality” directed at achieving Vision 2030
  • Set “sustainability indicators and targets” to be achieved during the 2025 Mid-term plan

Sustainability Indicators

  • By achieving the sustainability indicators that contribute to resolving the materiality, aim to achieve Vision 2030.
Materiality   FY2021
Revenue Opportunity 1 Createing businesses that solve social issues Sales ratio of environmentally friendly products


61.9% 70%
2 Open, Agile Innovative/
Building partnerships with various stakeholders
R&D expense growth rate for new businesses (compared to FY2021)


(100%) 125%
3 Implementation rate of IP landscaping for strengthening the businesses and themes for creating new businesses


17% 100% (Note1)
Risk E Developing business activities that consider climate change GHG emissions reduction rate (Scope 1,2) (Compared to FY2017)


▲29.0% (▲42%) (Note2)
GHG emissions reduction rate (Scope 1,2) (Compared to FY2021)


▲18.7% (Note3)
Ratio of renewable energy use to total consumption


10.9% 30% (Note3)
S Strengthening human capital and organizational execution abilities Employee engagement scores (Note4)


Ratio of female managers


3.8% 7%
Ratio of mid-career hires in total new hires(management, career-track, and clerial positions) (Note5)


36% 30%
G Building a governance system to strengthen risk management Ratio of follow-up on risk management activities for all risk domains


88% 100%
Ratio of SAQ implementation based on the CSR Procurement Guidelines for major suppliers


Implementation rate of human rights training for managerial positions (Note6)



(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 FY2021 upon the revision of Environmental Targets 2030; the reduction target value when applied to the former base year of FY2017 is also shown for reference.

(Note3) Target value for FY2025 was updated upon the revision of Environmental Targets 2030.

(Note4) Target value for FY2025 was newly set in FY2022.

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

(Note6) Started measuring from FY2022 and this means that 100% globally for each fiscal year will be continued.