Furukawa Electric Co., Ltd. TSE:5801

Furukawa Electric : Management Policy to Achieve Furukawa Electric Group Vision 2030

Published May 19, 2026 at 1:54 a.m. UTC

Source: MarketScreener

Management Policy to Achieve Furukawa Electric Group Vision 2030

May 19, 2026

Hideya Moridaira, President, Chief Executive Officer Furukawa Electric Co., Ltd.

Introduction
Achievements of the 2025 Medium-Term Management Plan
Management Policy to Achieve Vision 2030
Management Priorities (Value Creation through Solving Social Issues)
1. Creation of Information-Based Social Infrastructure
2. Challenges in New Businesses Contributing to Solving Social Issues
Management Priorities (Building the Management Foundation for Sustainable Value Creation)
1. Optimization of Business and Product Portfolio
2. Improvement of Labor Productivity
3. Maximizing the Value of Human Capital
4. Enhancement of Governance and Risk Resilience

Agenda

Introduction
© FURUKAWA ELECTRIC CO., LTD.
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Message from the CEO
Delivering on Our Purpose through Vision 2030
- Furukawa Electric Group is entering the Next Phase of Growth

Under the 4-year Medium-term Management Plan "Road to Vision 2030 - Transform and Challenge" which concluded in FY2025, we made steady progress on our key initiatives. As a result, we achieved most of our stated targets and successfully strengthened our management foundation.
We are now pleased to present our "Management Policy to Achieve Vision 2030." Starting from the Group's Purpose, we have examined the elements required to drive Vision 2030 forward and identified six key priority issues. Over the next five years, we are committed to addressing these issues with sincerity and determination.
Amid increasing uncertainty and rapid changes in the business environment, the assumptions and targets set forth in conventional medium-term management plans carry an inherent risk of becoming obsolete. Given this situation, we have repositioned this policy from a traditional medium-term plan with fixed commitments to one that outlines the most achievable "target levels" as of May 2026, along with the initiatives needed to reach them.
We will review these target levels as appropriate in response to future changes in the operating environment. Through such reviews, we aim to foster a shared understanding with our stakeholders while striving to enhance our corporate value over the medium to long term.

Hideya Moridaira

President, Chief Executive Officer

Furukawa Electric Group Purpose

Structure of the Corporate Philosophy

Based on a pyramid structure, the "Purpose" which sets forth the group's reason

for existing is positioned at the top, followed by the "Vision" aimed for by the Group and "Core Values" shared throughout the Group

Achievements of the 2025 Medium-Term Management Plan

Key Initiatives of the 2025 Mid-Term Management Plan
- Reorganize global optical
Financial and Sustainability Targets and Results

Maximize revenues in existing businesses through a focus on capital efficiency

Strengthen the foundation for ESG management

Build a foundation for creating new businesses by strengthening the development and proposal capabilities

fiber and cable business and other segments

Divestiture shares in listed subsidiaries
Business withdraw and M&A
Climate-change initiatives
Enhance organizational and talent execution capabilities
Initiatives to strengthen corporate governance
Establish a specialized social design organization
Actively utilize strategic partnerships and M&A

Improve financial indicators related to capital efficiency, including ROIC and ROE

	Items	FY25 Results	FY25 Targets
Financial targets	ROIC(after tax)	12.2%	More than 6%
	ROE	19.1%	More than 11%
	Net D/E ratio	0.6	0.8 or below
	Capital ratio	39.1%	More than 35%
	Net sales	JPY 1,300.0	More than JPY
		billion	1,100.0 billion
	Operating profit	JPY 63.9 billion	More than JPY
			58.0 billion
	Net income attributable to owners of	JPY 72.5 billion	More than JPY
	the parent		37.0 billion
Sustainability indicators (excerpt)	GHG emissions reduction rate	Reduce	Reduce 18.7%
	(Scope1,2)(compared with FY2021)	44%(estimated)
	Ratio of renewable energy use to total	53%(estimated)	30%
	consumption
	Employee engagement score	76	80
	(non-consolidated) Ratio of female	6.3%	7%
	workers in managerial positions
	Ratio of follow-up on risk
	management activities for all risk	100%	100%
	domains

Progress in GHG emissions reduction
Transition to a company with an Audit and Supervisory Committee

Progress in building new business foundation (life sciences, laser applications, superconductivity, and green LPG)

External Environment Change

Semiconductor market downturn, rapid adoption of generative AI, growth of the data-center market, U.S. tariff developments, geopolitical risks, Japanese-Yen

depreciation 9

Management Policy to Achieve Vision 2030
© FURUKAWA ELECTRIC CO., LTD.
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Overview of the Purpose-driven Management Policy
Challenges in New
Businesses Contributing to Solving Social Issues

Achievement of Furukawa Electric Group Vision 2030

Maximizing

the Value of Human Capital

Overview of the Medium- to Long-term Scenario

Management policy to achieve Vision 2030

Level of Financial Target Achievement and Investment Amount

Accelerate investments in the growth domains centered on the data center-related business*
Expect to achieve operating profit of JPY 250.0 billion and operating profit margin over 10% in FY2030 (including JPY 200.0 billion from the data center-related business)
Further increase in ROE and ROIC

Financial target levels

Operating profit and operating profit margin forecast

	FY2030	(reference) FY2025
Operating profit	JPY 250.0 billion	JPY 63.9 billion
ROE	20%	19.1%
ROIC	15%	12.2%

(JPY billion)

34.0

130.0

61.0

23.5

40.0

4.9%

6.5%

9.4%

40.4

300

250

200

150

Investment amount

100

	FY2026-FY2030
Investment amount	JPY 650.0 billion
Including investments in the focus domains	JPY 500.0 billion

FY25 FY26 FY28

Operating profit from the other businesses Operating profit from data center related businesses Operating profit margin

*The data center-related business include Lightera, Thermal Management Solutions & Products, FITEL Products, AT(Tape for semiconductor process), 13

Memory Disk, Copper Foil and Photonics-Electronics Convergence Devices

Cash Allocation

Total free cash flow during the 5 years through FY2030 is expected to be JPY 240.0 billion
In FY2026 and FY2027, capital procurement will temporarily increase for the purpose of investments
While providing shareholder returns, will proceed with the repayment of outstanding debt in order to further strengthen the financial base

2025 Mid-term Plan total

FY2026-2030 total

Change in cash flow

R&D expenses

Expect to be approx. 2.0 to 2.5% of net sales (Same as current level)

Sales of assets,

subsidies, etc.:

JPY 100.0 billion

Operating cash flow

JPY 800.0

billion

Depreciation & amortization:

JPY + 340.0 billion

Changes in working capital:

JPY (200.0) billion

Investments

Investment CF

Operating CF Cumulative FCF

JPY 660.0

billion

Investments in the

focus domain:

JPY 500.0 billion

FY2026 FY2027 FY2028 FY2029 FY2030

Thermal Management Solutions & Products, Lightera,

FITEL products, HVDC, and new businesses

Reduction of net interest-bearing debt JPY 120.0 billion

Shareholder returns JPY 120.0 billion

Operating cash flow JPY 156.4

billion

Sales of assets, etc.:

JPY 90.8 billion

Investments JPY 191.6

billion

Reduction of net interest-bearing debt JPY 28.8 billion

Shareholder returns JPY 26.8 billion

*Four years from FY2022 to FY2025 14

Shareholder Return Policy

Change from the current shareholder return policy of "target a dividend payout ratio of about 30%"
While accelerating the investments in the focus domains, maintain stable dividends that are not affected by fluctuations in profit levels

Basic policy

During the Vision 2030 period (FY2026 - FY2030), the Company aims to maintain stable shareholder returns while continuing investments to enhance corporate value, with dividends generally targeting 3.5% of shareholders' equity.

Management Priorities

1) Creation of Information-Based Social Infrastructure

Change to the Segments

From FY2026, reorganized into 6 new segments - Starting from marketing, optimize the combination with solutions
Accelerate growth of the data center-related business

Infrastructure

Communications Solutions

Energy Infrastructure

Electronics & Automotive

Systems

Automotive

Products & Batteries

Electronics Component Material

Functional Products

Service and Developments, etc.

Previous segment New segment

Optical Solutions

Optical Solutions (Lightera), BS*1, FITEL Products

Energy

Infrastructure

Digital Infrastructure

Components

Power Cable*3, Industrial Cable & Power Cable Accessories (FEPS、FEMC *4,5,6 )

Automotive Products*7, Batteries*8

Automotive Systems

Copper & High Performance Material Products,

Electric Conductor

Metal Solutions

Thermal & Management Solution & Products,

AT & Functional Plastics,

Service and

Developments, etc.

MD*9, Copper Foil (Social Design, etc.)

data center-related business

Lightera

AT, Thermal Management Solutions & Products, MD, Copper Foil, FITEL Products, Photonics-Electronics Converge *2

Renewable energy, HVDC related business

HVDC*3

Power Cable, FEPS※5, FEMC*6

New business

Superconducting Business*10

Social Design

Others

BN*1

Functional Plastics

Automotive Systems*7

Copper & High Performance Material Products

Electric Conductor

*1 BS (Broadband Solutions) has been renamed as BN (Broadband Networks)

*2 Next-generation photonics domain in Communications Solutions has been positioned under Digital Infrastructure Components as photonics-electronics convergence devices

*3 HVDC (high voltage direct current) domain in the Power Cable business has been positioned as a division under Energy Infrastructure

*4 FEPS & FEMC are subsidiaries under Industrial Cable & Power Cable Accessories

*5 FEPS: Furukawa Electric Power Systems Co., Ltd.

*6 FEMC: Furukawa Electric Metal Cable Co., Ltd.

*7 Automotive Products has been renamed as Automotive Systems

*8 Batteries business was deconsolidated in FY2025 Q4

*9 MD: Memory disk

*10 Superconductors has been transferred from Service and Developments, etc. to Metal Solutions

Creation of Information-Based Social Infrastructure: Data Center-Related Business

Respond to larger capacity, higher heat generation and increased density at data centers, and provide solutions to the problem of energy consumption
Operating profit in the data center-related business is expected to be JPY 200.0 billion (Level to be achieved in 2030)

Product lineups to be expanded toward 2030

Data center

Inside the data center

Inside the sever

Servers

Cooling

"Copper Clad laminate" materials for multi-layer printed wiring boards

Connection between

data centers

Heat sink (air-cooling method)

Materials for printed wiring boards

Connections between and inside data centers

Storage

NAND

Flash memory

Existing technology

Cold plate (water-cooling method)

Switches

Optical transceiver

Electrolytic copper foil

Rollable

Fan-in /Fa-out

SSD

DFB laser chip

MT ferrule

ribbon cable Multi-core fiber Hollow core fiber Pre-terminated cable

HDD

Future technology

SOA*

For Co-Packaged Optics (CPO)

Inter-board connections

Coherent transceiver

Nano ITLA

Thin-film LN modulator

Aluminum blanks for HDD Tape for semiconductor process

External light source (ELSFP)

*Semiconductor Optical Amplifier

Polarization maintaining fiber

Optical connector for PIC connections

Initiatives in the Data Center-Related Business

Rising demand for our products and solutions driven by the expansion of generative AI and data
center construction
Steadily capture the growing demand through strategic investments, and drive growth in the data center-related business through FY2030

Lightera

Plan to expand production capacity for optical fiber, rollable ribbon cables and MT ferrules
Optimize and maximize supply across the Lightera global productions
Anticipated profit growth
4 times

(from FY2025 to FY2030)

Thermal management solutions & Products

15 times

Maintain competitive advantage based on strong customer relationships, proven track record and advanced thermal design capabilities
Plan to expand water-cooling production capacity and grow water-cooling product-related sales to around JPY400 billion by FY2030
FITEL Products
10 times

Expand production capacity for DFB laser chips, excitation light sources for Raman amplifiers and SOA*¹
Significantly expand supply capacity for DFB laser chips for ELS*² in CPO (Planned construction of a new plant)

Data center-related business total

8 times

Note) Of the data center-related business, the initiatives for 3 business are given here.

In addition to the above, the data center-related business includes AT (tape for semiconductor process), MD (memory disk), copper foil and photonics-electronics convergence devices.

*¹Semiconductor Optical Amplifier

*²External Light Source 19

Growth of electric power demand from the increased prevalence of AI and data centers
Acceleration toward positioning renewable energy as a primary power source, along with policies to expand cross-regional interconnections, under Japan's Strategic Energy Plan

Creation of Information-Based Social Infrastructure: Renewable Energy and HVDC-Related Business

Create a business structure that will respond to growing renewable energy demand
Toward the 2030s, invest in HVDC and develop the business structure

*¹ Hyperscale Data Center

*² Large Multimodal Model

Develop the business structure that will respond to the full-scale growth in demand for renewable energy (submarine transmission lines + underground cables)

Toward the launch of the HVDC business in the 2030s: make related investments, build the business structure, and promote technology development

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