FUJITSU TEN GROUP. FUJITSU TEN LIMITED Established: 25 October 1974 Capital: 5.3 billion yen Number of Employees: 2,851

Transcription

1 FUJITSU TEN GROUP FUJITSU TEN LIMITED Established: 25 October 1974 Capital: 5.3 billion yen Number of Employees: 2,851 Domestic Manufacturing TOCHIGI FUJITSU TEN LIMITED Established: 6 January 1967 Capital: 60 million yen Number of Employees: 260 Sales FUJITSU TEN EAST JAPAN SALES LIMITED Established: 9 December 1988 Capital: 90 million yen Number of Employees: 109 FUJITSU TEN CHUBU SALES LIMITED Established: 1 April 1994 Capital: 30 million yen Number of Employees: 42 FUJITSU TEN WEST JAPAN SALES LIMITED Established: 1 April 1994 Capital: 80 million yen Number of Employees: 69 Other FUJITSU TEN ACTY LIMITED Established: 7 July 1992 Capital: 80 million yen Number of Employees: 51 FUJITSU TEN RESEARCH LIMITED Established: 2 November 1992 Capital: 10 million yen Number of Employees: 21 FUJITSU TEN INFORMATION SYSTEMS LIMITED Established: 1 October 1998 Capital: 50 million yen Number of Employees: 55 FUJITSU TEN STAFF LIMITED Established: 1 February 2000 Capital: 30 million yen Number of Employees: 116 FUJITSU TEN TECHNOLOGY LIMITED Established: 6 March 2003 Capital: 50 million yen Number of Employees: 66 Overseas Manufacturing FTCA (FUJITSU TEN CORP. OF AMERICA/United States) Established: 20 August 1976 Capital: 11.5 million USD Number of Employees: 299 FTdM (FUJITSU TEN de MEXICO, S.A. de C.V./Mexico) Established: 14 February 1996 Capital: 2.6 million MXN Number of Employees: 726 FTCP (FUJITSU TEN CORPORATION OF THE PHILIPPINES/Philippines) Established: 17 August 1990 Capital: 130 million PHP Number of Employees: 1,080 TIANJIN FUJITSU TEN ELECTRONICS CO., LTD. (China) Established: 21 December 1995 Capital: 8.72 million USD Number of Employees: 1,700 FTTL (FUJITSU TEN (THAILAND) COMPANY LIMITED/Thailand) Established: 11 August 1998 Capital: 200 million THB Number of Employees: 259 FUJITSU TEN ELECTRONICS (WUXI) LTD. (China) Established: 2 February 2004 Capital: 10 million USD Number of Employees: 120 Sales/other FTCI (FUJITSU TEN CANADA INC. /Canada) Established: 20 September 1983 Capital: 50 thousand USD Number of Employees: 7 ETUK (ECLIPSE TD (UK) LIMITED/UK) Established: 26 November 2001 Capital: 3.5 million GBP Number of Employees: 2 FTEG (FUJITSU TEN (EUROPE) GmbH/Germany) Established: 29 December 1975 Capital: 500 thousand DEM Number of Employees: 32 FTTC (FUJITSU TEN TECHNICAL CENTER/United States) Established: 1 October 2002 Capital: 1 million USD Number of Employees: 27 FTSP (FUJITSU TEN SOFTWARE PHILIPPINES, INC. /Philippines) Established: 31 August 1999 Capital: 30 million PHP Number of Employees: 157 FTSL (FUJITSU TEN (SINGAPORE) PTE. LTD. /Singapore) Established: 17 January 1990 Capital: 3.5 million SGD Number of Employees: 29 FTAL (FUJITSU TEN (AUSTRALIA) PTY. LTD. /Australia) Established: 17 January 1990 Capital: 330 thousand AUD Number of Employees: 30 IAA (INMOTION AUDIO (AUSTRALIA) PTY. LTD. /Australia) Established: 1 August 2000 Capital: 200 thousand AUD Number of Employees: 12 FTTT (FUJITSU TEN TRADING (TIANJIN) LTD. /China) Established: 12 September 2003 Capital: 200 thousand USD Number of Employees: 12 The Abundant Earth This illustration expresses our desire to build a brighter, happier future by protecting the Earth. FTRT (FUJITSU TEN RESEARCH & DEVELOPMENT (TIANJIN) LTD. /China) Established: 21 November 2003 Capital: 2.1 million USD Number of Employees: 25 CONTENTS You can also access this report on the Internet. 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe Japan Tel For inquiries about this report, please contact the Protection Department Tel Printed with aroma-free soy ink Printed on 100% recycled paper Published August 2004 Next edition scheduled for July 2005 Printed by Toppan Printing Company Message from the President Corporate Data/Editing Policy/Report Coverage Economic Report Main Financial Data Report 1. Business Activities and Their Main Aspects 2. Policies, s and Overview 3. Management 4. Efforts to Reduce Impacts 5. Considerations and Contributions of Products and Technologies Social Efforts Report 1. Communications 2. Efforts to Contribute to Society, Compliance and Risk Management 3. Personnel and Educational System, Occupational Safety and Health Promotion Data s of Site Efforts

2 Message from the President In the 21 st century, business activities in the manufacturing industry are becoming increasingly globalized, with procurement, production and sales occurring in many countries. At the same time, concerns about the environment will have a large impact on manufacturing in the future. Fears about the worsening global environment grow, and international efforts to establish regulations to prevent global warming and create systems for recycling-based societies are increasing. In spite of this, signs of improvement are still not easy to see at this time. The most important issue for human society is to balance economic development and environmental protection. As consciousness of this fact grows, businesses in the automotive industry, in particular, will be expected to make even greater efforts to reduce the environmental impacts of automobiles through environmental management. As a global supplier of automobile parts, we at Fujitsu Ten are following a business vision that appeals to the people of the world. In this vision, we imagine and create bountiful lifestyles and a car society that has a sense of the future. Through innovation of the human interface of automobiles, creating a better relationship between cars and people, we can ensure safety and reliability, create comfortable mobile spaces and protect the global environment. In particular, we believe we can fulfill the role of an environmental leader by contributing to the reduction of environmental impacts of automobiles through the development of green products and with the concern that we give the environment in the making of products. For environmental management, viewed with the three considerations of economy, environment and society, whether or not sustainable development can be achieved is becoming an important issue. We are working on the development of green products, an environmental issue that is product specific, and for concern for the environment in the making of products, an environmental issue that has effects at both local and global levels. In addition, we will put our energy into management that handles the issues of society, including corporate ethics, community revitalization, contributions to society and cultural activities. We are also strengthening and expanding our partnerships with other companies, communities and groups. We hope that you will lend us your support and understanding for our environmental management efforts at Fujitsu Ten. For this yearõs edition we have changed the title to the FUJITSU TEN GROUP Sustainability Report. In order to convey the breadth of our intentions and efforts, we have also added coverage of other efforts we make on behalf of our employees and society, including legal compliance, our personnel system, and occupational safety and health, to complement the information about our environmental efforts. We will be happy if this report helps you understand the state of the environmental management of the Fujitsu Ten Group. If you have any thoughts about our activities, we would be pleased to hear your frank opinions. August 2004 Takamitsu Tsuchimoto President and Representative Director Corporate Data Editing Policy Sales Volume Change (in billions of yen) Company Name Locations Representative : President and Representative Director Takamitsu Tsuchimoto Date Established : October 25, 1972 Business Activities : Manufacture and sales of infotainment equipments and car electronic devices Main Products : Infotainment equipments Audio and car navigation equipments For automotive use: Audio products Audio-visual products Navigation systems For home use: AVN Time Domain audio system Mobile communication radios Information-communication-applied systems Information-communication-applied equipments Car electronic devices Electronic Control Units (ECU) and sensors Millimeter-wave radar (60 GHz/76 GHz band) Vehicle Security System Capital : 5.3 billion (as of March 31, 2004) (VSS) : Fujitsu Ten Limited : Head Office 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe Japan Tel Plants in Japan 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe Japan Tel , Naegi, Nakatsugawa, Gifu Japan Tel Purpose While preparing this FUJITSU TEN GROUP Sustainability Report, we sought to report all of our ideas and efforts related to the economic, social and environmental sides of our business, as well as present company information clearly and accurately. Audience This report is for customers, employees, suppliers, local communities, government officials and every other person who is a stakeholder in our activities. Features of the 2004 Report We expanded reporting coverage to include the entire Fujitsu Ten Group. In addition to our environmental activities, we included reporting on some aspects of our economic and social activities. For our environmental activities in particular, we have made efforts to make information such as goals, plans and results easy to understand by using graphs and illustrations. Basic Guidelines The Japanese Ministry of the Environment Reporting Guidelines (Fiscal Year 2003 Version) Communication We believe that this FUJITSU TEN GROUP Sustainability Report is an important tool for communication between the Fujitsu Ten Group and you. Please let us know your opinions by using the questionnaire included with this report or by otherwise contacting us. The Fujitsu Ten Group puts sincerity at the heart of all of our effort and makes contribution to customers and society our corporate philosophy. We seek to grow with our customers as we develop and provide original products and services. Total Assets Change (in billions of yen) Ordinary Profit Change (in billions of yen) Production Volume Change (in billions of yen) Change in Number of Employees Time Domain audio system Millimeter-wave radar Report Coverage The data summaries of the environmental impacts and environmental accounting in this report are for the 2003 fiscal year (April 1, 2003 to March 31, 2004). We provide data for Fujitsu Ten alone and data for the Fujitsu Ten Group, including 1 manufacturing company, 3 sales companies, and 5 other companies in Japan, and 5* manufacturing companies, 5 sales companies and 3 other companies abroad. However, some of the data about results are only for domestic companies or only for Fujitsu Ten Limited. In the future, we hope to improve this information coverage. *This number does not include Fujitsu Ten Electronics (Wuxi) Ltd., which is a non-capital company currently under construction. Net Profit Change (in billions of yen) For details about our financial information, you can access our public financial statement and other information at the following site.

3 The main activities of the Fujitsu Ten Group are product development, design, manufacturing and sales of infotainment equipments (including audio and car navigation equipments and mobile communication radios) mainly for use in automobiles, and car electronic devices. The environmental efforts of the group include recognizing the impact on the environment of our business activities and the use and disposal of our products. We are undertaking quantitative evaluations of investments in materials and natural resources and of byproducts, including waste materials discharge, wastewater and gas emissions, for every type (aspect) of environmental impact, and planning and promoting our efforts accordingly. Aspects of Our Main Business Activities and Products and Efforts Taken to Protect the Environment Main Efforts in the 2003 Fiscal Year Among our green product development, in addition to developing an all-in-one film antenna for TV and GPS use that is 90% lighter than previous products, we have also begun the use of lead-free solder in products for customer use. In response to the continuous expansion of the scope of the Europe's End-of-Life Vehicle (ELV) Directive, we have been eliminating lead use in light bulbs and establishing hexavalent chromium-free technologies. Furthermore, we have set Life Cycle Assessment (LCA) guidelines and begun applying them to some of our products. Among our efforts to protect the environment, we reduced CO2 emissions in logistics by having all goods that are produced abroad shipped from the ports nearest to their site of manufacture (shortest distance by land). In addition, in May 2003, FTEG (Germany) was the first sales company to receive ISO certification, followed by FTTL (Thailand) in October the same year. Flow of Business Activities and Products Common to All Business Locations Development and Planning Procurement of Parts and Materials Manufacturing Product Logistics, Sales, and Aftercare Services Product Use Product Disposal (Collection and Recycling) Main environmental aspect (input) (1) Consumption of energy resources (2) Consumption of water resources (3) Consumption of forest resources (1) Consumption of fuel by test vehicles (1) Consumption of fuel by transport vehicles (1) Electric power consumption by our manufacturing plants (1) Consumption of fuel by vehicles used by logistics and sales (2) Consumption of paper in the manufacture of catalogs and product containers and packaging Factors that contribute to environmental impacts Main environmental aspect (output) (4) Emission of substances with environmental impacts (5) Wastewater from non-industrial uses (6) Waste (2) Gas emissions from test vehicles (2) Emission of substances that impact the environment during manufacture (3) Gas emissions from transport vehicles (4) Waste from containers and packaging of delivered parts and materials (2) Use and emission of substances that impact the environment during manufacture (3) Unnecessary materials (scrap materials and faulty products) (4) Used containers and packaging of supplied parts and materials (3) Gas emissions from vehicles used by logistics and sales (4) Used catalogs and product containers and packaging Main environmental aspect (product) (3) Use of natural resources, including minerals, oil and forest resources (4) Consumption of fuel at time of product use (5) Presence of harmful substances in product parts (5) Presence of harmful substances in the secondary materials of products (1) Automobile fuel use (indirect impact) (1) Used products (post-recycling automotive waste, shredder residue) Measures to prevent global warming (1) (4) Development of simulators (1) (2) Promotion of green procurement Measures to prevent global warming (1) Promotion of green logistics (1) (3) Design for product energy conservation (Product Use (1)) protection efforts Efforts to reduce paper use (3) Management of chemical substances handling and reduction of the use of harmful substances (4) Reduction of waste and appropriate disposal (6) Development of green products (3) (4) (5) Development of products that contribute to environmental protection Participation in the supplier cooperation subcommittee of the Tenei Kai (1) (2) (3) (4) Reduction of the use of substances with environmental impacts (2) (5) Reuse of containers and packaging from supplied parts and materials (4) Introduction of the use of eco-cars (1) (3) Recycling of product containers and packaging (2) consideration in making catalogs and product manuals (2) Reduction of the environmental pollution risks of used products (Product Disposal (1)) Recycling and reuse of used products (Product Disposal (1))

4 1. The Fujitsu Ten Corporate Vision: Vision 2012 In October 2002, 30 years from the founding of Fujitsu Ten, we carefully considered what kind of company we should become 30 years in the future. We also established the Fujitsu Ten Corporate Vision, Vision 2012, that describes what path we should follow and, as a global business, what kind of company we should be for the next 10 years. Fujitsu Ten places the environment as one of our most important management concerns. Based on this corporate vision, we established the Fujitsu Ten Group Environment Charter to provide a guiding policy for our environmental endeavors and we set our Fundamental Principles, Fundamental Policies and Action Directives Corporate Philosophy Corporate Culture Business Vision We will work with the utmost sincerity to support our customers We shall not only and contribute to society. Responsibility and Contributions to Society Customer Focus, Highest Possible Quality MAKOTO Sincerity Work Value accept change but Challenge daringly embrace it. Creating originality. Originality Bright & Speedy Accomplish Encourage Cheerful, Fun, Fast Achieving goals. We shall encourage each other by engaging in lively conversation. 2. Fujitsu Ten Group Environment Charter We have brought together the three fields of automotive electronics, entertainment, and information technology to work on the creation of a new business category. By using IT to improve cars and by innovating easy-to-use human interfaces, we are bringing society and cars together seamlessly. Our goals are to ensure safety and reliability, create a comfortable mobile space, and protect the global environment. Automotive Electronics Entertainment Information Technology Innovations in Human Interfaces In accord with the Fujitsu Ten Corporate Vision, we reexamined the Fujitsu Ten Environment Charter that we created in November 1992, and, in March 2003, we replaced it with the Fujitsu Ten Group Environment Charter. We are committed to the important goal of harmony with the environment, and, by making use of our unique car electronics technology, we are making efforts on a global level to contribute to the development of both car society and an abundantly green 21 st century society. Fundamental Principles Fundamental Policies Action Directives Ensure Safety and Reliability Create a Comfortable Mobile Space Protect the Environment 4. s, s and Evaluation In March 2003, in order to realize concretely the items set in the Fujitsu Ten Group Environment Charter, we prepared and announced the 4 th Fujitsu Ten Group Action Plan, which has fiscal 2005 as its final year of completion. The results for fiscal 2003 are presented below, including some goals that were missed. 4 th Action Plan s and s Item Green Products + Green Sourcing Main Theme of Action Expansion of list of substances prohibited from use in products Promote measures to prevent global warming Action Plan Final Ratings exceeded met approximately not met not met to a large extent Discontinue completely the use of lead solder in new products made beginning in July 2005 Discontinue the use of parts containing hexavalent chromium by the end of 2004 Discontinue completely the use of parts containing lead or cadmium by the end of June 2005* Introduce products that do not use mercury in their backlighting to the market by the end of fiscal 2005 Reduce CO2 emissions by production volume to 15% less than fiscal 2002 levels by the end of fiscal 2005 Reduce CO2 emissions by production Domestic volume to 15% less than fiscal 1999 levels by the end of fiscal 2005 Fiscal Year 2003 s Fiscal Year 2003 s Phase in lead-free solder model for customer use Phase in lead-free solder model for two customer companies Develop alternative hexavalent chromium-free technologies and plans for their implementation Alternative technologies and implementation plans developed except for some Complete inspection of parts containing lead and cadmium Some inspections not completed Complete testing of product prototypes that do not use mercury in backlighting Alternative technology using xenon developed 4% or more 5% 14% or more 12% Rating Fiscal Year 2004 s Establish techniques for all manufacturing methods Complete adoption for parts that have applicable alternative technologies by the end of December Complete inspection of parts to be covered Complete target setting for adoption of alternative technology 7% or more 13% or more Reference Page The Fujitsu Ten Group is aware of the close connections between the global environment and our business activities, products and services related to the industries of automotive electronics, entertainment, and information technology. With our promotion of environmental management, we are contributing to the development of a green 21 st century and meeting our responsibilities as a corporate citizen. 3. Effort Concept 1. Comprehensive measures 2. Thoroughness of basics 3. Coordination and collaboration with society In accord with the Fujitsu Ten Group Environment Charter, the Fujitsu Ten Group has made "Green Life 21- Making Everything Green" the key theme of our environmental efforts in every business area. 1. Promote site environmental protection efforts that seek to minimize environmental impact 2. Apply the latest environmental technology to our products by strengthening cooperation with related companies and suppliers 3. Promote green procurement and green logistics 4. Raise the awareness of our entire staff through substantial environmental education Green Factories + Green Logistics + Green Sourcing Promote measures to conserve, recycle and reuse resources Domestic Reduce the amount of waste disposal by production volume to 10% less than fiscal 2002 levels by the end of fiscal 2005 Achieve a waste recycling rate of 90% by the end of fiscal 2005 Reduce the amount of waste disposal by production volume to 10% less than fiscal 2002 levels by the end of fiscal 2005 Maintain a waste recycling rate of 100% 3% or more 4% 88% or more 88% 9% or more 7% 100% 100% 5% or more 89% or more 9% or more 100% 13 Effort Concept Green Factories Realization of zero waste emission factories Promotion of measures to prevent global warming Promotion of resource conservation and resource recycling measures Promotion of measures to reduce the use of and environmental risk from chemical substances Green Products Development of technologies that contribute to the environment and the provision of green products Implementation of product environmental assessment Promotion of ecological design Development of essential technology for green products Factories (Production) GREEN LIFE 21 Making Everything Green Protection Protection Products (Development and Design) Management Upstream and Downstream (Procurement and Logistics) Green Sourcing and Logistics Consideration of the environment both upstream and downstream of production Create green partnerships Green procurement (of parts and materials that are environmentally friendly) Green logistics (of products in an environmentally friendly manner) Management Creation of a foundation for environmental management and publication and release of information Promote measures to reduce the use of chemical substances and to decrease environmental risks Reduce the amount of the use of substances covered by the Pollutant Release and Transfer Register (PRTR) by production volume to 30% less than fiscal 2002 levels by the end or fiscal 2005 In order to achieve these performance goals, in addition to strengthening the collaboration of the group on environmental management, we are making an accurate appraisal of the environmental impacts of our products, including every process from design to disposal and of the product itself, and setting up a system for management. Furthermore, we are working on the development of green products, an environmental issue that is business specific, and on the consideration of 9% or more 13% 22% or more *Deadline for discontinuing use except for substances that still do not have prohibition dates set under Europe's End-of-Life Vehicle (ELV) Directive. The ELV Directive is a European Union regulation that requires environmental consideration for cars that have reached the ends of their useful lives. The directive regulates the prohibition of the use of designated harmful substances (lead, hexavalent chromium, cadmium, mercury) in cars and ensures the car recycling rate. the environment in the making of products, an environmental issue that has effects at both local and global levels. In addition, we will put our energy into management that handles the issues of society, including corporate ethics, community revitalization, contributions to society and cultural activities. We are also strengthening and expanding our partnerships with other companies, communities and groups. 14

5 5. Accounting Since March 2003, we have been conducting environmental accounting to identify and evaluate quantitatively the costs and the economic and material effects of environmental protection activities. Since fiscal 2002, we have begun including our businesses abroad in environmental accounting. For 2003, we have calculated the environmental costs and effects for 17 companies of the Fujitsu Ten Group. accounting, as a part of business administration, promotes the effective reduction of environmental impacts by grasping all of the company environmental protection efforts. In addition, we consider this to be a valuable tool to deepen the understanding of the environmental protection efforts of our company. We referred to the Ministry of the Environment's guidelines and the environmental management systems already established by other companies when creating the Fujitsu Ten Group Accounting Guidelines. In this document, we are publishing the summarized results of our environmental accounting. In order to utilize environmental accounting fully as a management tool, however, many issues must be dealt with, including how to estimate environmental costs, how to measure the economic and material amount effects of environmental investments, which are necessary for making management decisions, and how to establish standards. Furthermore, in order to improve the reliability of our accounting from the perspective of information disclosure, in addition to continuously reconsidering and reexamining our Accounting Guidelines, we will set up an internal audit system. Methods for Categorizing and Summarizing Costs and Economic Effects Method for Costs losses Maintenance costs investments risk reduction Reduce environmental costs overall impacts New equipment investment is the sum of an annual amount based on 5-year fixed amortization and other costs that occurred during the applicable fiscal year. s of Fiscal 2003 (Investment amounts attributed proportionately according to amount relevant to the environment) Fujitsu Ten Limited: costs increased 116 million yen over the previous fiscal year to 409 million yen. The main causes for the increase were the greater production and management costs associated with the development of technologies to reduce the use of substances with environmental impacts in our products. Research and development costs increased 80 million yen while management costs increased 32 million yen. Environment effects increased 23 million yen over the previous fiscal year to 150 million yen. Effects of research and development for models that qualify as green products increased 6 million yen, while presumed effects from the increased numbers of newspaper articles about our activities (image-improving effect) increased 24 million yen. Method for Economic Effects Actual effects (cost reduction): Saving on maintenance costs and income from the sales of valuable goods Presumed effects: The economic effects that are presumed, by some definition, to result from efforts such as environmental education Risk avoidance effects: Avoidance of risks, including environmental pollution and lawsuits Related Companies (Domestic): costs increased 6 million yen, including 4 million yen in recycling costs, to 32 million yen. effects decreased 3 million yen to 6 million yen due to the lack of results in the reuse of jig and tool parts by Tochigi Fujitsu Ten. Related Companies (Abroad): costs increased 20 million yen over the previous year to 104 million yen due to installing energy-conserving inverter equipment at FTCP (Philippines) and reevaluating labor costs at each facility. This year, environmental effects calculated for the first time were achieved for a total of 24 million yen. Fiscal 2003 Accounting Costs Effects Business area costs Business area effects Other effects Category Pollution prevention costs environment protection costs Resource recycling costs Sewage expenses Upstream and downstream costs Management activity costs Research and development costs Social activity costs damage costs business costs Costs Pollution prevention effects environment protection effects Resource recycling effects Upstream and downstream effects Management activity effects Research and development effects damage effects business effects Economic Effects Details Costs related to the prevention of noise and atmosphere pollution, personnel expenses for operation of environmental facilities Energy conservation measure expenses, costs related to prevention of global warming, etc. Waste recycling expenses, costs related to efficient use of resources, etc. Public sewer expenses Costs related to reduction of impacts caused by upstream and downstream activities related to production and services (product recycling protection costs related to management activities (certification maintenance costs, etc.) protection costs related to research and development activities (green product and environmental technology design and protection costs related to efforts for society (vegetation planting costs, etc.) Costs of responding to environmental damages (soil and groundwater pollution restoration costs, compensation, etc.) Costs related to environmental business activities Total protection activity contribution as a part of the added value gained through production activities Cost reduction through decreased use of electricity, oil, gas and other resources Cost reduction through decreased waste amounts, efficient use, etc. Value of sale of reusable products and parts, and savings from parts reuse Effects of employee internal education, value of environmental publicity activities that raise the company image Value of green products and environmentally friendly product sales and license revenues Value of resident compensation payments avoided through groundwater pollution countermeasures, etc. Value of environmental business sales contributions Total Fujitsu Ten Limited Related Companies Domestic Abroad (Unit: millions of yen) Group Total Breakdown of Costs Costs Fujitsu Ten Limited Fiscal 2002 losses Maintenance costs investments Total Related Companies Domestic Abroad (Unit: millions of yen) Group Total Fiscal 2003 Fiscal 2002 Fiscal 2003 Fiscal 2002 Fiscal 2003 Fiscal 2002 Fiscal 2003 Consolidated coverage: 12 companies in fiscal 2002, 17 companies in fiscal 2003 Breakdown of Effects (Economic Effects) Economic Effects Actual effects Fujitsu Ten Limited Presumed effects Risk avoidance effects Total Related Companies Domestic Abroad (Unit: millions of yen) Group Total Fiscal 2002 Fiscal 2003 Fiscal 2002 Fiscal 2003 Fiscal 2002 Fiscal 2003 Fiscal 2002 Fiscal 2003 Consolidated coverage: 7 companies in fiscal 2002, 17 companies in fiscal 2003 Efficiency (Production volume/co2 emissions amount) Fiscal Year Material Effects Fujitsu Ten Limited Related Companies Domestic Abroad impact reduction amount (fiscal 2003 impact amount Ð fiscal 2002 impact amount) CO2 Emissions (unit: t-c) (Unit: 100 million yen/t-c) Group Total Fiscal 2002 CO2 emissions have been recalculated using the latest CO2 emission factor. * efficiency (production volume/environmental impact): An index that indicates the amount of environmental impact per production volume (This value shows the more effective reforms are, the more the economic value increases.) Material Volume Effects and Impact Improvement Indicators We are measuring environmental performance with absolute values, including environmental impacts that occur from business activities and material volume effects of our protection efforts. In addition, we are setting environmental impact improvement indicators that link significant impacts with management indicators (production volume, environmental costs). From the perspective of management, we hope to evaluate the effectiveness of our protection activities through these measurements and achieve continuous improvement of our environmental management. Future Efforts We will continue to promote production efficiency and production process reforms and related environmental impact reduction efforts, and reflect costs and effects in environmental accounting. Furthermore, in fiscal 2004, we will include the sales and design companies that we could not in fiscal 2003, and conduct environmental accounting for the entire Fujitsu Ten Group.

6 1. Promotional Organization In 1992, we established the Environment Committee and, within this, the Site Environment Subcommittee that is responsible for environmental protection at every facility or business location, and the Green Products Subcommittee that is responsible for environmental considerations for products. Management Committee Officer in charge: Koichiro Fukushima 3. Status of ISO Certification The Fujitsu Ten Group is seeking to achieve ISO certification for all of our production facilities. We have already completed certification of 3 facilities in Japan and 6 facilities abroad, with Fujitsu Ten Thailand obtaining ISO certification in October We are currently making efforts to achieve ISO certification for Fujitsu Ten Electronics (China), which is under construction now. Enterprise Date of Certification Evaluating Organization Authorizing Organization Audit Team Protection Department Domestic Fujitsu Ten Head Office Plant Fujitsu Ten Nakatsugawa Plant 24 June August 1997 JACO JACO JAB, UKAS JAB, UKAS Management Planning Group Purchasing Group Tochigi Fujitsu Ten 27 October 1997 JACO JAB, UKAS Legal affairs, public relations, education, contributions to society Quality Assurance Group Prevention of issues related to quality Marketing & Sales Group Investigation and notification of customer requests Service Section: reuse of parts Environment Committee Green procurement Research & Development Group Operation of product environmental information system, infrastructure preparation Production Group Reduction of packaging, increasing efficiency of logistics, development of production technology Abroad FTCP (Philippines) FTCA (USA) Tianjin Fujitsu Ten Electronics (China) FTdM (Mexico) FTEG (Germany)* FTTL (Thailand) 21 October June December June May October 2003 T V Rheinland LRQA CCEMS LRQA T V Rheinland UNITED DAR ANSI, RAB ZHB, UKAS RAB, ANSI DAR UKAS Site Environment Subcommittee Green Products Subcommittee *Sales company Fujitsu Ten Electronics (China) Undetermined Undetermined Undetermined Energy conservation, reduction of waste materials, reduction of chemical substance emissions Product environmental assessment, green product development 4. Auditing Head Office Plant Nakatsugawa Plant Tochigi Fujitsu Ten FTCA (USA) FTdM (Mexico) FTCP (Philippines) Tianjin Fujitsu Ten (China) FTTL (Thailand) Development Division Business Division Production Division We are implementing internal audits as part of our environmental management system. While checking the state of our environmental protection efforts based on these results, we also conduct an evaluation of our management efforts for the year in order to improve our environmental management system continuously. Number of Domestic Group Auditors Chief Auditors Auditors s of Fiscal 2003 Internal Audits Number of Abroad Group Auditors Chief Auditors 5 Auditors 12 In addition, we have established cooperation committees for cooperative activities among facilities in Japan and facilities in other countries, and separate promotion organizations for each kind of promotion effort related to product environmental measures. 2. Management System The environmental management of the Fujitsu Ten Group, based on the ISO international standards, employs a systematic Plan/Do/Check/Action tool. In addition, while improving our responsiveness to the needs of the age and society by introducing environmental accounting and environmental performance indicators, we are developing every stage of our business activities. Furthermore, in order to make steady progress with the Fujitsu Ten Group Action Plan, we are setting environmental policies and environmental management programs for each year. We are developing a detailed environmental management program that will further involve every part and every member of our company. Facility Cooperation Committees Task Promotion Organizations Management System Reevaluation at the management level Management meetings Environment Committee Fundamental principles and policies Fujitsu Ten Environment Charter Inspection and improvement Principle inspection and internal audit system Japan Group Cooperation Committee Foreign Group Cooperation Committee Green Products Development Promotion Committee Product Assessment Promotion Committee Lead Elimination Project Hexavalent Chromium Elimination Promotion Committee Plans and goals Fujitsu Ten Group Action Plan Implementation and application management system Number of Identified Problems and Number of Corrections (Domestic) Number of Identified Problems and Number of Corrections (Abroad) Number of Problems Number of Corrections Number of Problems Number of Corrections Status of Compliance with Legal Limits Internal audit In Japan, the Fujitsu Ten Group regularly measures water quality, air, noise and vibration. In fiscal 2003, we did not have any environmental emissions that exceeded any regulatory limits of environmental laws or our own voluntary standards. Abroad, FTTL (Thailand) exceeded the voluntary standards of its industrial park for water quality. The cause was identified as the oil in the wastewater from the cafeteria. The cafeteria staff has been instructed to clean the drainage pit twice per week and remove the oil. 6. Education We are implementing environmental education at all levels in the company by including environmental management in our company education program. In particular, we are conducting special education programs, both introductory training and refresher courses, for staff with direct responsibility for environmental management work. Staff members who are in charge of environmental management, responsible for environmental protection promotion, involved environmental management auditing, or doing environmentally related work, train in order to gain necessary knowledge and skills. 7. Training for Emergency Measures Since the Great Awaji Hanshin Earthquake Disaster in January 1995, we have been conducting training drills for employees to practice response to a simulated chemical substance leakage accident near the storage facilities. In addition to this, at workplaces where chemical substances are used, we conduct training for coping with spills during work. We are also implementing periodical inspections of the equipment that we have provided for handling these accidents. Status of Training Practice (Training Simulation Drill) Facility Name Head Office Plant Nakatsugawa Plant Tochigi Fujitsu Ten Businesses Abroad * Not including company wide fire drills, etc. Number of Practices Number of Participants (Cumulative) Training simulation drill (Tochigi Fujitsu Ten)

7 8. Green Procurement In September 2001, we created Green Procurement Guidelines in order to promote green product development, the most important issue for environmental management. These guidelines include our green procurement philosophy and goals and list the standards that parts, raw materials and secondary materials must comply with for environmentally friendly procurement. (Revisions published in 2002) In fiscal 2003, in pursuit of achieving our final green procurement rate goals, we actively supported the creation of environmental management systems at suppliers that still lacked them. For this purpose, we used the EMS establishment handbook created in cooperation with the business partners of the Fujitsu Ten Association and other guidelines. As a result, we have achieved a green procurement rate of 99.7% (monetary base), which is greater than our goal to exceed 99%. Green procurement rate Fiscal % or greater Requests for our suppliers 1. Establish an environmental management system s of Supplier Status Evaluation (Evaluated suppliers: 291 in fiscal 2001, 373 in fiscal 2002, 323 in fiscal 2003) Management System Evaluation (Maximum Score: 80) Evaluation Items and Points per Item Category management system evaluation (80 points) Performance evaluation (20 points) Fiscal 2003 Policies related to the environment Evaluation Item impact evaluation and laws related to the environment Plan for environmental protection efforts Organizations and systems related to environmental management Education and information efforts related to environmental protection Efforts to conserve energy and resources Reduction of waste disposal and efforts to recycle Efforts to reduce the use of substances with environmental impacts In fiscal 2001, we began to give Contribution Awards to suppliers that made excellent efforts to cooperate with our goals of developing green products and reducing the environmental impact of factories. The fiscal 2003 award results are as shown on the right. Total Evaluation with the Addition of Performance Evaluation (Maximum Score: 100) Green Procurement Guidelines The number of suppliers is in parentheses ( ). The number of suppliers is in parentheses ( ). Contribution Awards 99.7% (goal achieved) Definition of green procurement Procurement of green parts and materials that have been made with consideration for environmental protection, including energy conservation, resource use reduction and recyclability Definition of green parts and materials Parts, raw materials and secondary materials that have been procured from businesses that have received ISO certification or that are making environmental protection efforts in conformance with this standard Parts, raw materials and secondary materials that do not contain substances that our company has prohibited for use 80 points points points points 49 or fewer points (Fiscal 100 points points points points points points 49 or fewer points year) Receive ISO certification or establish an environmental management system in conformance with this standard by the end of fiscal Promote environmental protection efforts that match our Action Directives Management and risk reduction of substances with environmental impacts Energy and resource conservation Consideration about packaging materials Labeling of products that use small secondary batteries Consideration about recycling Making products lead-free Points Evaluation Item Points Communication with stakeholders Documentation of environmental management system and management of those documents Preparation for emergency situations Inspection and improvement Reevaluation at the management level Efforts to disclose environmental impacts Efforts to make contributions to society and to be active in local communities Fiscal 2003 Award s 1 Company For eliminating lead use in electronic parts The Fujitsu Ten Group as a whole is promoting measures to prevent global warming, to conserve and recycle resources, and to reduce the use of chemical substances and lower their environmental risks. Before the last fiscal year, we had established action goals for production facilities in Japan as a single integrated management area, but for facilities and sales bases in other countries, we had conducted activities independently according to the conditions in each country. With the creation of the 4 th Fujitsu Ten Group Action Plan in March 2003, however, the Fujitsu Ten Group began pursuing globally integrated activities to reduce environmental impacts. 1. Measures to Prevent Warming In order to reduce the emissions of CO2, a primary cause of global warming, we are taking energy conservation measures such as the installation of energy saving equipment and making thorough efforts to reduce energy consumption. In addition, we are also trying to conserve energy by improving the efficiency of our design, production, logistics and office work. In fiscal 2003, we installed a cogeneration system. This system uses city gas to fuel a gas turbine that generates 50 kw of electricity and uses exhaust heat for air-conditioning and other functions. This low pollution, energy saving equipment contributes to global environmental protection and the prevention of global warming. In fiscal 2004, we will broaden our efforts to reduce CO2 emissions by beginning to implement green production processes, green electricity purchases and forest preservation. Fiscal 2003 Fiscal 2003 s Efforts to Conserve Energy at Workplaces Fiscal 2003 CO2 Emission Amount by Source Fiscal 2003 CO2 Emission Amount by Business : Reduce CO2 emissions amounts by production volume by 4% from fiscal 2002 levels Domestic: Reduce CO2 emissions amounts by production volume by 14% from fiscal 1990 levels : Reduced 5% from 2002 levels (goal achieved) Domestic: Reduced 12% from 1990 levels (goal not achieved) In order to reduce emissions of CO2, a primary cause of global warming, we are making comprehensive efforts throughout the company to conserve energy. These include reducing electricity use for air-conditioning and lighting, eliminating wasteful equipment utilization through the introduction of energy conserving equipment and line rationalization, and improvement of the Total amount of CO2 emissions Electricity Heavy oil City gas Light oil LPG (propane) Natural gas Kerosene Head Office Plant Nakatsugawa Plant Tianjin Fujitsu Ten FTCP FTdM Tochigi Fujitsu Ten FTCA FTTL Sales companies in Japan Others Change in Energy Use (electric power equivalent) MWh Change in CO2 Emissions by Production Volume and Basic Unit of Production (energy only) t-c Cogeneration equipment efficiency of design, production, logistics and office work. Our fiscal 2003 global target to reduce the CO2 emissions amount per unit of production in the first year of the 4 th Action Plan was met, but we failed to achieve our domestic target. The main cause of missing our domestic target was the increased number of second shift operations due to increased production. energy used Production volume (Fiscal year) (Fiscal year) CO2 emissions Production volume

8 2. Measures to Reduce Waste The Fujitsu Ten Group is promoting the 3Rs - Reduce, Reuse and Recycle - and achieved zero waste emissions* at all domestic production facilities by the end of January We are seeking to achieve zero waste emissions at our production facilities abroad by the end of the 2007 fiscal year. *The Fujitsu Ten Group definition of "zero waste emissions": By reducing the amount of waste materials at workplaces, and by reusing and recycling the waste that does occur, we eliminate waste that is disposed of in landfills, by incineration, or by other means and not put to good use. Fiscal 2003 Fiscal 2003 s : Reduce waste emissions amount by production volume by 3% from fiscal 2002 levels Achieve waste recycling amount of 88% or greater Domestic: Reduce waste emissions amount by production volume by 9% from fiscal 2002 levels Maintain waste recycling amount of 100% : Reduction of 4% from fiscal 2002 levels (goal achieved) Recycling rate of 88% (goal achieved) Domestic: Reduction of 7% from fiscal 2002 levels (goal not achieved) Recycling rate of 100% (goal achieved) 3. Measures to Reduce the Use of Harmful Substances For all chemical products used by the company, we have created a system in which we use chemical substance safety data sheets to identify the presence of substances that are subject to management, the amount contained (%), and chemical substance assessments that identify their negative effects on the human body and their risks to the environment. We are also making efforts to identify and reduce the use of chemical products that have high environmental risks. At present, the focus of our use reduction efforts are substances that are covered by the PRTR* 1, including lead, toluene, and xylene, and one VOC* 2, isopropyl alcohol (IPA), substances that we have used in significant amounts. *1. PRTR (Pollutant Release and Transfer Register): A system in which the amount of harmful chemical substances released into the environment and the amounts contained in waste materials and products that are transferred out of workplaces are calculated and publicized. The PRTR Law was enacted in Japan in March *2. VOC (Volatile Organic Compounds): Substances that volatilize at room temperature, spread into the atmosphere and generate photochemical oxidants that damage forests, that pollute the environment as harmful chemical substances, including carcinogens and environmental hormones, and that are feared to harm ecosystems. Fiscal 2003 Fiscal 2003 s : Reduce the amount of PRTR covered substances used per production volume unit by 9% from fiscal 2002 levels : Reduced by 13% from fiscal 2002 levels (goal achieved) ly, we achieved our reduction goals for fiscal 2003, but we were unable to achieve our domestic goals because of an increase in the amount of waste from packaging from imported products received at our logistics centers. These wooden pallets, cardboard and other wastes were all recycled for their materials. Since we anticipate that the amount of packaging waste is going to continue to increase, we are promoting measures, including reuse of materials internally and changes to our supply methods, in coordination with our production plants abroad. Changes in Waste Emissions Amounts and Recycling Rates per Basic Unit of Production Recycling amount (t) Final disposal amount (t) Recycling rate (%) Waste amount (t) Production volume (100 million yen) Basic unit of production volume (t/100 million yen) Waste Products and Parts Recycling Examples Waste products Waste parts Disassembly Sorting Fiscal 2002 Categories after Disassembly and Sorting Iron scrap Nonferrous metal scrap Electric wire scrap Circuit board scrap Miscellaneous metallic scrap Fiscal 2003 Compound iron and plastic materials LCD screens Waste plastic Furthermore, although we achieved our recycling rate goals globally and in Japan, when the Toyota Logistics Center began operation in May 2003, there was a lack of recyclers for some wastes at first. We intend to achieve a 100% recycling rate in fiscal Fiscal 2003 Waste Amount by Source Ordinary garbage from office activities Metal scraps Other Waste amount Plastic waste Paper waste Fiscal 2003 Waste Amount by Business Head Office Plant FTdM FTCP Nakatsugawa Plant Methods of Recycling and Reuse Waste amount Tochigi Fujitsu Ten FTCA Others Recycled as iron Each metal recycled separately Copper recovered and recycled Valuable metals recovered, remainder recycled as roadbed material Metals recycled by type, and, after valuable metals recovered from circuit boards, remainder recycled as roadbed material Melted, iron recycled, plastic used as blast furnace fuel Glass parts recycled, plastic used as secondary fuel Identifiable plastics recycled, unidentifiable plastics used as secondary fuel Fiscal 2003 s Substance Lead Xylene Toluene Silver Total Changes in Amounts of Harmful Substances Used and Basic Production Unit Fiscal Year Lead (t) Toluene, xylene (t) Basic Production Unit (kg/100 million yen) Fiscal 2003 s Isopropyl Alcohol (IPA) Measures to Reduce the Use of Solder (Lead) We have switched from using lead solder (36% lead) and are promoting the development of lead-free solder materials and construction methods. In July of fiscal 2002, we put products that use lead-free solder on the market. In addition, to reduce the overall use of solder we are implementing the use of surface mount devices (SMD) for electronic parts. For further details, please see the section entitled Lead-Free Solder on page 16. Efforts Beginning in Fiscal 2004 Amount Used (Unit: kg) We will seek to achieve the complete elimination of lead use in all of our products manufactured from July We will promote the use of alternatives, including the flow method, low melting point solder techniques and electrode-plated parts. Fiscal 2003 Usage by Business Fiscal 2003 Usage by Business Measures to Reduce the Use of Isopropyl Alcohol (IPA) In order to reduce isopropyl alcohol use, in addition to the merging of production lines to make multiple products on the same line, as with solder, we are also strengthening our voluntary efforts to reduce the frequency of machine washing and instead of washing, just wiping them clean during periodic inspections and maintenance. Toluene and Xylene Substitution Plan Nakatsugawa Plant FTCP FTdM Tochigi Fujitsu Ten Tianjin Fujitsu Ten FTCA Head Office Plant FTTL Nakatsugawa Plant FTCP FTdM Tianjin Fujitsu Ten Head Office Plant Tochigi Fujitsu Ten FTCA FTTL We are seeking to develop alternative solvents for use in circuit board coating to replace toluene, a diluent, and xylene, a solvent, by the end of fiscal 2004, and further increase the trustworthiness of our products.

9 The Fujitsu Ten Group established a system for Product Assessment in We implement assessments for every product from the design stage and only put into production the designs that have cleared our set of standards. Furthermore, we are promoting environmental consideration in products by implementing a system of recognizing as "green products" those that have implemented significant improvements, especially in energy and resource conservation and the elimination of harmful substances. In fiscal 2003, 27% of our newly designed products qualified as green products. (Fiscal 2002 = 547/2150 product models; fiscal 2003 = 1036/3905 product models) 1. Working to Meet Europe's End-of-Life Vehicle Directive Europe has implemented the End-of-Life Vehicle (ELV) Directive, beginning in July 2003, which, with limited exceptions, prohibits the inclusion of lead, cadmium, hexavalent chromium, and mercury. We had already completed the elimination of the use of lead and cadmium by July From 2004, we plan to eliminate the use of harmful substances at least one year in advance of the ELV Directive deadlines. Symbol identifying green products Lead-Free Solder From July 2007, we intend to use lead-free solder in all new products. For this purpose, we are working on establishing new soldering methods, and changing to alternative parts. In July 2002, we put our first product with lead-free solder on the market, the Eclipse AVN3302D, and in April 2003, we used it for the first time in an all-in-one audio-visual device in equipment prepared for the Toyota Motor Corporation. Furthermore, in March 2004, we began mass production of the first product that uses completely lead-free solder for both flow and reflow. Using this solder, we produce two models of the MBC Series of industrial use vehicle control computers for Transtron Inc. All-in-one audio-visual unit Lead-free circuit board panel Periods for Restriction of Substances and the Fujitsu Ten Group's Elimination Plan RoHS Directive ELV restriction period Fujitsu Ten Group for Eliminating Use Parts Containing Substance Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 MBC Series Completely lead-free circuit board Lead Light-bulb glass Aluminum for machine processing (lead1%) End of February January End of June July Product Information System We created a Product Information Management System that is linked with our PDM System*. About 600 designers are using it as a tool to support the development and design of green products. We are going to improve this system and use it as a means to provide automobile manufacturers with quantitative product environmental information in a timely manner. Cadmium Hexavalent chromium Mercury Solder Thick film paste Chromate treatment Liquid crystal backlights Restriction period not yet determined 1st Conversion End of June 2nd Conversion Restriction period not yet determined July End of December July Green product development Product planning and design Shared use of meaningful related information Collect environmental information about parts as electronic data Supplier part makers Provide information about part materials *The Product Data Management (PDM) System is a system to manage information about products, including data about technological information related to products, such as plans, part lists and explanatory documents. Product name Unit Assessment Presence (incomplete/complete) Substance Quantity name Measures to Eliminate Hexavalent Chromium Hexavalent chromium is used in the zinc coating of steel plates in, for example, brackets and chassis, and of screws. From fiscal 2002, we began to use alternative parts that have had their quality verified. For current products, we intend to implement alternatives by December (1st Conversion) We are still developing alternatives for some parts and intend to complete conversion for these parts that are behind schedule in our action plan by the end of 2005 and complete the elimination of hexavalent chromium in all of our products. (2nd Conversion) Plating Type Example Products Airbag control computer that uses zinc-coated steel plates that are chrome-free Conversion Deadline Product Assessment Pass Production approved Mass production Recognition Green product Assessment checklist Assessment implementation management PDM System Product Assessment Information System (Database) Part Incomplete Part Complete Part Complete Part Complete Yes No Yes Provide environmental impact information to customers Provide product environmental information as electronic data Purchasing automobile manufacturers Disclosure of information about harmful substances Disclosure of recyclability rates Cadmium Mercury 2mg 6mg 1st Conversion Zinc plating (yellow, white) Zinc-coated steel plates Screws, speakers Brackets, chassis End of December nd Conversion Zinc plating (black) Dacro (black), aluminum chromate Brackets Screws End of December 2005 Management of evaluation results Comply with car disposal regulations of importing countries Hexavalent chromium used as an anti-corrosive in purchased electrical parts

10 3. Development of a Film Antenna for TV/GPS Units ( First) We created a film version of a previously freestanding GPS antenna and combined its functions with our film television antenna that had already been released as a product. As a result, we have achieved easier attachment, reduction of visibility impairment during driving, and improved views from the interior of the vehicle, as well as a weight that is approximately 1/10 that of our previous product. This product will be used in all of our Eclipse Audio Visual Navigation (AVN) models sold in Japan from July We intend to employ this technology in more and more of our products in the future. Previous models Combined model Material weight (g) Weight of the antenna only (without cable) 5. Fuel Cell Vehicle Controller Toyota Motor Corporation and Hino Motors, Ltd. have jointly developed the FCHV-BUS2, a large, low-floor, hybrid, fuel-cell bus. Fujitsu Ten developed and produced the hydrogen fuel tank shut-valve controller for the FCHV-BUS2. We also developed, at the request of Toyota, the ECU that provides unified control over such operations as motor drive, electricity generation of the fuel cells and recharging of secondary batteries. The FCHV-BUS2 produces no NOx or particulate matter, so it should contribute to improving the air quality, especially in cities. September 2002 August :FCHV-BUS2 buses received official authorization from the Minister of the Land, Infrastructure and Transport Ministry and began public road tests in October of that year. :Publicly operated FCHV-BUS2 buses began service throughout Tokyo prefecture. In addition to their smooth ride, they show great promise due to their increased internal and external noise reduction. :Plans are being made to use FCHV-BUS2 buses to help shuttle visitors at the 2005 World Exposition, Aichi, Japan. GPS Antenna Film TV Antenna Previous models TV/GPS combined film antenna 4. Reduction of Packaging Size We are reducing the amount of packaging used to ship products. Through conservation of packaging, reduction of waste after product delivery and increased transportation efficiency, fuel consumption and CO2 emissions are reduced among other effects. Hydrogen fuel tank shut-valve controller Cardboard for Audio Amplifiers Since replaceable audio amplifiers for use by automobile manufacturers have brackets on both sides, we used a large cardboard box for their shipment in the past. We realized that since they are attached with screws, we could ship the amplifiers with the brackets still unattached, making the packaging much smaller and reducing the amount of filler material. Dimensions (mm) Volume (cm 3 ) Weight (g) Before reduction After reduction Hybrid fuel-cell bus Referencehttp:// 6. Introduction of Life Cycle Assessment (LCA) Life Cycle Assessment (LCA) is the evaluation of a productõs impacts on the environment at every stage of its existence from the collection of raw resources and the manufacture of materials through the fabrication of parts and product assembly to use, disposal and recycling. Before and after size reduction Even in Japan, the number of businesses that are seriously pursuing LCA beyond the requirements of the law is increasing as companies seek to enhance green product development further. In fiscal 2003, we established life cycle assessment (LCA) implementation guidelines and began testing some products.* Many standards exist for evaluating environmental impacts, but, as a first step, we measured the amounts of materials and energy used in assembly as CO2 emission equivalents to determine the lifelong impact of products. We will use this information to develop products that have reduced environmental impacts. Lifecycle of a Fujitsu Ten Product 1.Resource collection 2.Materials manufacture Use of materials (ore, oil, etc.) and energy (electricity, etc.) Fujitsu Ten 6.Disposal and recycling 5.Product use Vehicle Cardboard for TV Film Antennas For distribution of TV film antennas for dealer options, we used a common cardboard box. By using a box of a matching size, we were able to reduce the amount of cardboard and reduce the amount of filler material. Through this change, we have reduced shipping weight for this product by 24,180 kilograms per year. Dimensions (mm) Volume (cm 3 ) Weight (g) Before reduction After reduction *LCA test product (example) 3.Parts fabrication Parts supplier Parts procure- ment 4.Product assembly Calculation of LCA value (CO2 emissions equivalent) for parts supplier and Fujitsu Ten Product delivery Lifecycle of a Fujitsu Ten Product Cassette/CD Player This time we conducted the LCA test for the above stages from 1 (resource collection) to 4 (product assembly). We will develop guidelines for evaluating the lifecycle impacts of stages 5 (product use) and 6 (disposal and recycling), after the product has been installed in a vehicle, and expect to implement the full LCA by the end of fiscal LCA Calculation s Product weight (g) CO2 emissions equivalent for stages 1-3(g) CO2 emissions equivalent for stage 4 (g) CO2 total emissions equivalent for stages 1-4(g) Before improvement After improvement

11 At the Fujitsu Ten Group, we believe that releasing information about our environmental management is fulfillment of one of the most important aspects of the duty all companies bear to explain corporate activities to society. We provide information about our environmental management to the public using this FUJITSU TEN GROUP Sustainability Report and other means. In addition to public reporting, we are also providing information in our in-house publications and on our intranet in order to raise the understanding of the importance of environmental management and make all of our employees realize that these environmental protection efforts involve everyone in the Fujitsu Ten Group. This FUJITSU TEN GROUP Sustainability Report We began publishing an Report, which summarizes all of our corporate environmental information in fiscal In addition to distributing it to all of our affiliates and suppliers, we provide it to visitors to our factories and others upon request. In fiscal 2004, we have added information about economic and social aspects of our business and published this as our FUJITSU TEN GROUP Sustainability Report. Furthermore, in addition to distributing past Reports and this FUJITSU TEN GROUP Sustainability Report as brochures, we have also made them available on our company website. From fiscal 2003, we have also prepared English editions of the report, which you can also find on our website. At the Fujitsu Ten Group, we do not want to have information that flows only one-way, but rather we are actively seeking to develop two-way communication with our clients, stakeholders and the public. If you have any opinions about our environmental efforts, comments about this FUJITSU TEN GROUP Sustainability Report, or anything else that you would like to communicate with us about, please do not hesitate to contact us. External Public Relations Record April 2003 June 2003 June 2003 August 2003 November th Fujitsu Ten Group Action Plan established Implementation of Community Cleaning as our Environment Month activity FTEG received ISO certification Fiscal 2002 environmental accounting and publication of fiscal 2003 Report Nakatsugawa Plant implementation of 11 th Community Cleaning Please visit the following URL if you have any comments or questions. Fujitsu Ten public website Recycling Contest (FTTL) FTTL (Thailand) established an Safety Week in December 2003, and held a Recycling Contest as an employee event. This event was held to raise awareness of the value of waste materials as resources by seeking new ideas for waste recycling. 13 ideas were developed as a result. Fujitsu Ten Social Contribution Foundation The company and the labor union made contributions together to establish the Fujitsu Ten Social Contribution Foundation. Among its activities, the foundation makes donation to social welfare facilities and supports visits to these facilities by our culture and sports club. The foundation's other activities include support for the "Ring of Love Concert" by Oto Kobo, a volunteer group, and sponsorship of concerts in and out of the company. The foundation also supports an event for employees to experience wheelchair use put on by the group Fureai Kobo. In addition, the Nakatsugawa Plant sponsors a Charity Lecture once per year and donates the proceeds to welfare facilities through the Nakatsugawa Social Welfare Association. Awards and Other Achievements November Legal Compliance We have established the Fujitsu Ten Business Activity Directive as internal rules to develop thorough awareness among employees and promote legal compliance in every business activity. 3. Risk Management We are promoting risk management at every facility and in every division to cope with any potential risk, including those related to natural disasters, product liability and the environment. Under the authority of the Risk Management Committee, the Risk Management Secretariat collects information about problems from our sites and takes appropriate measures according to the risk level, such as establishing a response headquarters in order to resolve the problem as quickly as possible. Information about problems is distributed to all related departments and concerned employees. We are working to prevent risk re-occurrence by analyzing risks, developing countermeasures and raising awareness throughout the company. Nodate Volunteers (Nakatsugawa Plant) Management Work Excellence Organization (ISO Management System and Contribution to Cleaning Activities Ð Tianjin Fujitsu Ten) Risk Management System Information about problem Natural disaster, accident Disaster Prevention Committee Report important matters Management Committee Risk Management Committee Risk Management Secretariat Product and service issues Product Liability Committee Safety Guarantee Export Management Committee Establish fundamental directives and manage overall coordination and cooperation issues Environment Committee Feedback and coordination Network issues Information Advancement Promotion Committee Corporate negligence, crime General Affairs Division Workplace Frontline (Workplace Managers) Direction Personnel, labor issues Personnel Division Feedback and coordination Directions and reforms 1. Efforts to Contribute to the Environment and Society At the Fujitsu Ten Group, in addition to our on-site environmental protection efforts, we are making significant efforts to help build a recycling-based society while developing partnerships with the people in our communities. Community Cleaning Many of our employees cooperate with local people to clean areas near our facilities and along commutation routes. Factory Vegetation Planting The Fujitsu Ten Group maintains the legal vegetated area (% of land covered by vegetation) at all our domestic factories. In March 2003, we planted 22 trees, including sasanqua camellias at the Nakatsugawa Plant. We also planted trees at facilities abroad. At FTCP (Philippines), we have increased the number of trees by 50% in the 6 years since At Tianjin Fujitsu Ten (China), we are raising flowers in beds in a green house. This not only allows employees to engage in horticulture, but also contributes to raising the level of environmental consciousness. Beautification efforts around the Tochigi Fujitsu Ten Plant