Responding to Water Risks Policy and Guidelines on Water Risk The Fujikura Group cites “minimize water usage and manage effluent at factories” as one of the challenge items in its Long-term Environmental Vision 2050, in order to respond to water risks. To minimize the use of water at factories, we are implementing activities under the motto “avoid use where possible, reuse, and thoroughly treat before returning water to nature.” As for effluent management, we are installing constant monitoring systems for pH, oil, and turbidity at the final release valves at manufacturing bases in Japan. In addition, the Fujikura Group Guideline for Environmental Management Activity, which are based on the Long-Term Environmental Vision 2050, set a target of improving unit water consumption by 5% or more in fiscal 2025 compared to fiscal 2020 at all domestic and overseas consolidated companies. Water Risks that Previously Occurred at Group Sites In 2011, Thailand experienced a once-in-a-50-year flood that caused the Fujikura Group to suffer extensive losses at its production bases. We declared a full recovery from these floods in 2016 and based on the lessons learned, we are promoting diversification of production bases to nearby countries and the installation of water walls. Later, we included floods and droughts within our BCP activities in Thailand. In addition, we selection new manufacturing bases after fully investigating past floods and site elevation, among other factors. Initiatives in FY 2021 Total Water Intake, Intake by Source and Usage in Japan and Overseas The Fujikura Group makes efforts to ensure its business activities use the same amount of water as we intake. Regarding water intake, there is no water stress in Japan due to drought, but we carry out the slope protection improvements, reinforce rainwater drainage ditches, and reinforce tidal embankments, among other initiatives as preventive measures against floods. In FY2021, water usage decreased from FY2020 both in Japan and overseas.By water source, tap water and well water decreased, while industrial water increased slightly. Water Discharge Amount in Japan Our water discharge amount in FY2021 decreased 3.9% compared to FY2019 in Japan. The decline in production was the main reason for the decrease. As for effluent management at manufacturing bases in Japan, automated monitoring systems are used to closely check pH, oil, and turbidity at final release valves.