Consumer Issues Fujikura Quality Policy Fujikura Quality Policy (revised in April 2019) 1.To provide customers with products and services that are of the highest quality by pursuing a management philosophy based on Quality. 2.To ensure that all employees continuously engage in proper conduct related to quality control by complying with all laws, regulations and contracts with customers, based on a strong awareness of the importance of quality compliance. 3.To always encourage communication within the workplace to foster an open corporate culture, and promptly report to superiors when problems of quality compliance are recognized. Quality Assurance System Each of the business divisions and domestic and overseas group companies of Fujikura are developing company-wide TQM activities based on quality management systems (QMS) such as ISO 9001 to meet the trust and expectations of our customers. Fujikura holds regular company-wide quality strategy meetings and quality assurance managers' meetings hosted by the director in charge of the Corporate Quality Control Division to determine quality policy, quality targets, and quality KPIs, and to deliberate and make decisions on quality-related issues. In addition, internal quality assurance audits are conducted on each business division and group company to maintain and improve quality based on each division's quality performance and other information. Quality-Related Complaints Complaints are the last things customers want to have, so Fujikura continues to make efforts to minimize any complaints. Most manufacturing is done at domestic and international Fujikura group companies, and to stop re-occurrence of complaints, our group companies cooperate to research reasons for claims and implement responses. From FY2013, we have introduced KPI for product quality. This will act as a unified quality standard in efforts to grasp and improve Fujikura group-wide quality. When a serious complaint occurs, General Manager, Corporate Quality Control Divisionv and management are notified immediately and a special team is assembled to analyze the cause, handling everything with as little effect on the customer as possible. In an effort to reach our goal of "Zero Serious Complaints," our group continues activities to ensure product quality. Quality Management Education As part of our personnel training plan, Fujikura implements quality management education for all young technicians in their first year of employment. The goal is for quality management training to equip trainees with basic competence in practical, statistical quality management based on quality data and be "immediately useful" in quality management and quality improvement activities. We have also established a hotline for trainees to seek advice on the application of statistical quality management techniques they have learned to actual operations and are working to create an environment that facilitates use of statistical quality management and improves the quality of all products. Measures for Product Safety The Fujikura Group Basic Policy on Product Safety(June, 2021) Based on our policy that “any product accident must never happen,” Fujikura has engaged in its product safety activities. Toward the development of products in its new business areas, the Fujikura Group has formulated its policies into “Basic Policy on Product Safety,” and, as a whole, will conduct product safety activities. 1. Compliance with law • Grasp the latest information on laws and regulations regarding product safety and comply with them. • Establish or revise in-house regulations according to these laws and regulations and inform the employees of the change. 2. Ensuring of product safety • To provide customers with safe products, use various reliability tools to ensure safety design. • Display necessary instructions and warning messages on the products or in manuals so that products can be used properly. 3. Response to product accident • If an accident arises from the use of products, immediately collect information and provide it appropriately. • Take measures such as recalling or repairing the products according to the degree of impact of the product accident. 4. Continued improvement • Each business unit shall implement a voluntary action plan that they devised and work on it continuously. • Using this continued improvement, establish a corporate culture of ensuring the safety of products so that customers can use them safely Governance Structure At the beginning of FY2019 (as of April 1 of the same year), the organization was revised and the Quality Assurance Division (currently the Corporate Quality Control Division) became an organization under the direct control of the President. The Quality Assurance Department (currently the Corporate Quality Control Department) is now under the direct control of the President. In order to strengthen the quality management system and ensure the independence of the Quality Assurance Division, the Quality Assurance Organization (departments, offices, and sections), which had previously been under the control of each business division, has been placed under the control of the Corporate Quality Control Division and directly under the President. In addition, a system has been established to plan and implement personnel rotations, promotions, training programs, and acquisition of external qualifications in the Quality Control Division. Progress of Action Plan for Cases of Unsuitable Quality The Fujikura Group is working on improvement of awareness of quality compliance based on the preventative measures announced on April 25, 2019. These efforts include governance reforms, appropriate understanding of production process capabilities and testing capacity, and verification of requested customer specifications. We started work on all preventative measures during FY2019. In FY2020, we evaluated the effectiveness of the measures we had taken to date, and moved forward steadily on the preventative measures that needed to be continually implemented. In FY2021, we will work to continue thoroughly implementing these preventative measures.