CDP. Module: Introduction. Page: W0. Introduction. CDP 2017 Water 2017 Information Request W0.1. Introduction

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1 CDP CDP 2017 Water 2017 Information Request Fujitsu Ltd. Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization Fujitsu Group has pursued "operating in harmony with nature" since its founding in Environmental conservation is one of our highest priorities, and our environmental management is guided by Corporate Values enshrined in the Fujitsu Way, that "in all our actions, we protect the environment and contribute to society." As a global ICT corporation, the Fujitsu Group develops advanced environmental technologies, and makes products and services employing these technologies available throughout the world. Through the pursuit of this mission we not only lessen the environmental burden of our own business activities but also help to reduce the environmental burden of our customers and society. W0.2 Reporting year Please state the start and end date of the year for which you are reporting data Period for which data is reported Fri 01 Apr Fri 31 Mar 2017

2 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related impacts are reported Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not in your disclosure? Yes W0.4a Exclusions Please report the exclusions in the following table Exclusion Please explain why you have made the exclusion Non-manufacturing sites are excluded Non-manufacturing sites have extremely small impact on aquatic environmental burden with their activities such as extracting water and discharging water. To be specific, the largest data center in our group makes up of only 1% of Fujitsu Group's water usage. Therefore, we will only include manufacturing sites for this reporting scope. Further Information Module: Current State

3 Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Important Important Important Important (Direct use) In the Fujitsu Group,a large amount of pure water is especially used to manufacture and rinse the semiconductor devices and the printed circuit boards, thus we think it is important to reduce the amount of water usage for operation. We have continuously worked on water saving,pure water recycling, and rain water utilization at each factory.the effective use of the water resource hangs to the target of the Fujitsu Group Environmental Action Plan from FY2013. For FY ,we have set a numerical target,"reduce water consumption by 1% in total(128000m3)". (Indirect use) Not only our sites,but also suppliers use a large amount of pure water especially manufacturing and rinsing semiconductor devices and printed circuit boards,it's important to secure volumes and reduce the amount of water usage.securing various water resources such as recycled water is important in supply chain. (Direct use) Fujitsu Group uses both freshly extracted water from external and recycled water from sites. To use municipal water supply and underground water efficiently, we implement recovering and recycling waste water from manufacturing processes at sites with high water usage. (Recycled-water usage stands for approx. 1/3 compared to water extracted from external.) We believe that recycledwater usage is important for an efficient usage of our water resources. In additions, our business has no part in brackish or produced water. (Indirect use) Our suppliers also uses both freshly extracted water from external and recycled water from its sites. To use municipal water supply and underground water efficiently, they implement recovering and recycling waste water generated from manufacturing processes at sites with high water usage. We believe that recycled-water usage is important for an efficient usage of our water resources. W1.2

4 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Please explain Water withdrawals- total volumes Water withdrawals- volume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers We have managed the amount of water consumption and drainage of our all 100% facilities except ones shown at W0.4. It has set that to address the efficient use of water on Fujitsu Group Environmental Action Plan. We are acquiring relating data of certain facilities which contain major factories in domestic and overseas regularly and continuously. Classifying to clean water, industrial water, underground water, and circulating water (recycled water), we are managing a water intake amount at our all 100% facilities except ones shown at W0.4. We have managed the volume of water consumption and drainage of our all 100% facilities except ones shown at W0.4. It has set that to address the efficient use of water in the Fujitsu Group Environmental Activity Plan. We are acquiring relating data of certain facilities which contain major factories in domestic and overseas regularly and continuously. Waste water after use in the facilities is drained to the sewer or rivers after performing necessary processing. The amount is managed continuously in our all 100% facilities except ones shown at W0.4. Waste water after use in the facilities is drained to the sewer or rivers after performing necessary processing. The amount is managed continuously in our all 100% facilities except ones shown at W0.4. We are managing the value of ph, BOD, and COD in our all 100% facilities except ones shown at W0.4. We have managed the volume of water consumption and drainage of our all 100% facilities except ones shown at W0.4. It has set that to address the efficient use of water in the Fujitsu Group Environmental Activity Program. We are acquiring relating data of certain facilities which contain major factories in domestic and overseas regularly and continuously. At our 100% sites, we are providing to all employees a safe drinking water and sanitation. However, we recognize the fact of missing these facilities in developing countries, and the water supply facilities aging in Japan. W1.2a

5 Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Fresh surface water 0 Not applicable Brackish surface water/seawater 0 Not applicable Rainwater 419 About the same 2.9% increased compared to last year (previous year: 407 megaliters). Groundwater - renewable 6415 Higher 6.0% increased compared to last year (previous year: 6050 megaliters). Groundwater - nonrenewable 0 Not applicable Produced/process water 0 Not applicable Municipal supply Higher This is sum of intake amount of municipal water and industrial water. It has increased mainly due to the change in boundary. If compared in new boundary, it is 0.4% decrease and almost same as last year. Wastewater from another organization 0 Not applicable Total About the same Increase of production in Japan domestic resulted in 2.1% increase compared to last year (previous year: megaliters). Whereas, we have been striving continuously for not only water-saving, but water recycling and reusing including pure water recycling and rainwater harvesting. From FY2016, we have set a numerical target, "reduce water consumption by 1% in total (128000m3)" in our Environmental Action Plan Stage VIII, we are strengthening our efforts more than ever. W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations

6 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water Higher Brackish surface water/seawater 0 Not applicable Groundwater 0 Not applicable Municipal/industrial wastewater treatment plant 1458 Higher Wastewater for another organization 0 Not applicable Total Higher 5.7% increased compared to last year. (previous year: megaliters) 13.1% increased compared to last year. (previous year: 1289 megaliters) 6.3% increased compared to last year. (Previous year: 14080) W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment Higher It has increased 6.6% (previous year: 15832) mainly due to the change in boundary. If compared in new boundary, it is 2.1% increase and it can be regarded almost same as last year. From FY2016, we have set a numerical target, "reduce water consumption by 1% in total (128000m3)" in our Environmental Action Plan Stage VIII, we are strengthening our efforts more than ever.

7 W1.3 Do you request your suppliers to report on their water use, risks and/or management? Yes W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage Proportion of suppliers 24.4% Total procurement spend 98.3% Fujitsu Group Green Procurement Direction for suppliers defines water resources conservation as one of the requests, and ask to all suppliers to take actions. We define our main business partners as those involving in our main products and those conducting more than 50 million yen of transactions with us annually. We include them in our annual environmental activities survey targets, including annual water usage and conditions of water-resource conservation. We checked that our business partners have water risks such as tsunami, flooding, and torrential rainfall in their risk forecasts. These risk forecasts are in impact investigation target and emergency activation standards of business continuity planning. We have sent letters of appreciation to business partners with significant contribution to Fujitsu's businesses, in view of their influences on the entire supply chains and their strong business continuity, including environmental conservation activities such as water conservation. W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management

8 Primary reason Please explain W1.4 Has your organization experienced any detrimental impacts related to water in the reporting year? No W1.4a Please describe the detrimental impacts experienced by your organization related to water in the reporting year Country River basin Impact driver Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental impacts related to water in the reporting year and any plans you have to investigate this in the future

9 Primary reason Future plans Further Information Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Coverage Scale Please explain Comprehensive company-wide risk assessment Direct operations and supply chain All facilities and suppliers (Direct operation) We use water-risk tool WRI Aqueduct to specify facilities with "high" or "extremely high" overall water risk. We also consider products' life assessment; ISO14001-based environment management system(ems); & on-site data collected at our sites based on EMS.Those factors are utilized to set targets of Environmental Action Plan,and to report results and progresses of our activities to management level. In addition to the legal restraints imposed by country and local governments,we have established our own standards.water quality of discharging water are evaluated hourly and risks brought by the discharging water in public water area are managed

10 Risk assessment procedure Coverage Scale Please explain thoroughly. (Supply chain) We define our main business partners(98.3% of total procurement cost) as those involving in our main products, and those conducting >50 million yen of transactions with us annually. We include them in our annual environmental activities survey targets, including annual water usage and conditions of water-resource conservation. We check if they include water risks such as tsunami, flooding,& torrential rainfall in their risk forecasts. These forecasts are in impact investigation target& emergency activation standards of business continuity planning.we prepare a list detailing their locations and emergency contacts so that in an emergency can immediately investigate local situations& secure continuity of our procurements. W2.3 Please state how frequently you undertake water risk assessments, at what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Comment Six-monthly or more frequently River basin 3 to 6 years We investigate water management status at our direct operation sites accross the entire group monthly, and conduct on-site investigation at our partners' factories based on EICC code of conduct and internal audit based on environment management system which followed ISO In an emergency, we investigate regions' and basins' situations of our direct operation sites and partners immediately to be able to secure continuity of operation and procurements. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy?

11 Yes, evaluated over the next 5 years W2.4a Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? [Example of risks identified which could impact on the growth strategy] In particular, Fujitsu Group uses large amount of water to manufacture semiconductors and printed circuit boards. A limit on this water usage could restrict growth strategies. However, our business strategies aim to shift our core business from manufacturing including semiconductors to providing ICT solutions and services. In regard to this, water risks in our business strategies are decreasing relatively. On the other hand, our opportunities lie in mitigating risks of global scale water scarcity and water-related disasters by providing ICT solutions and services. For example, we provides a system to share disaster information with citizen in Jakarta, where water risk is high, or Fujitsu Lab is developing simulation technologies to forecast flooding. [The process/procedure by which the results of the water risk assessment inform the growth strategy] Twice a year in the Environmental Management Committee meeting led by our president, we report and discuss Fujitsu Group's water management status, Aqueduct water risk evaluation result, and solutions and R&Ds for contributing to mitigation of risk and sustainability of our society. These discussions are reported to Management Council and considered with regard to business strategies. [Why and how the growth strategy changed/did not change as a result of the risk(s) identified] There is no revision or change in Fujitsu Group's growth strategies due to water risk. Fujitsu Group's manufacturing sites are not affected by business-critical water risks due to our thorough water management, and this conclusion is supported by Aqueduct risk evaluation as it indicates lack of apparent water risks. Moreover, water risks are unlikely to impact our growth strategies in future as we shift from manufacturing to solutions and services. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future?

12 Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method Please explain how these methods are used in your risk assessment Internal company knowledge Life Cycle Assessment WRI Aqueduct To understand water risks in our direct operations and supply chains from multiple aspects, Fujitsu Group conduct analysis based on an inclusive perspective from WRI Aqueduct, internal knowledge, and life-cycle assessment of water risks in business activities. Furthermore, we report our water management status in the Environmental Management Committee meeting, which is held twice a year and led by our president. With this system, we discuss and take effective implementations whenever necessary. 1) Methods of using risk evaluation and integration of selected methods 2) Reasons of selecting the methods 3) Extents of application [WRI Aqueduct] 1) We use it in inclusive water risk evaluation in our direct operations and our supply chains' locations. 2) Using tools such as an international standards is very effective to evaluate risks of value chains spreading across a wide region in a consistent manner. Because everyone can use it, we evaluate and adopt the point that group companies and suppliers themselves can utilize tools. 3) Locations of our direct operations and our main suppliers in general. [LCA] 1) We conduct life-cycle assessment on newly developed products, including evaluations of water risks. 2) With Fujitsu Group's LCA, we can compare easily evaluation results of environmental impact during life cycle of newly developed and existing products. With this, we can clarify improvements of environmental impact in early stage and reflect them on our product designs. Since 1993 we have started our own product environmental assessment, and since it has high maturity as a method, we believe it is effective for water risk assessment. 3) We apply them on our newly developed targeted products group-wide. [Internal knowledge] 1) We apply company's internal insights in our water risk evaluation: internal audit based on ISO14001-based environment management system (EMS); for our supply chains, on-site investigations at our partners' factories based on EICC code of conduct; site-specific regulations based on these investigations; water management status; relationships with surrounding stakeholders. 2) We understand that observation results we obtained on sites are important for practical evaluation of water risks. Therefore we assign employees with rich operational experience and deep understanding of country's and local administration's regulations as our auditors. Internal audits related to EMS are conducted for 501 domestic and 19 overseas factories and offices of Fujitsu and Group companies in FY By using this scheme to grasp the water risk situation, it is possible to grasp the whole picture. 3) Locations of our direct operations and our main suppliers in general. W2.6

13 Which of the following contextual issues are always factored into your organization's water risk assessments? Issues Choose option Please explain Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Among our business sites, factories manufacturing semiconductors and printed circuit boards in particular consume large amount of high-quality purified water. Because of that, we conduct risk evaluation for places where these factories are located by using Aqueduct and our internal knowledge regarding regional regulations. We have established internal discharging-water quality standards higher than standards laid out in legal regulations. Our pollution control managers manage and control the water quality. For example, because the Ise Bay and the Seto Inland Sea are closed water areas in the Kinki district, we control the water quality by establishing strict internal standards for wastewater than legal regulations and agreed standards with local governments, and internal pollution control managers carries out water quality management. Among our business sites, factories manufacturing semiconductors and printed circuit boards in particular consume large amount of high-quality purified water. Because of that, we conduct risk evaluation for places where these factories are located by using Aqueduct and our internal knowledge. In additions, costs of procurement and discharging water affect manufacturing cost per unit. Therefore, it is important to maintain the water quality and keep the costs down. Personnel in charge from our company utilize our internal knowledge to conduct risk evaluation on water costs. Because there is no intake restriction of groundwater at business sites in Chubu district, after analyzing the impact on groundwater use for the area, we started using groundwater to lower procurement costs. We record the amount of water withdrawal and implement appropriate and sustainable use and monitoring. If wastewater that exceeds the water regulation value is discharged at own facilities / business sites of some suppliers, there is a possibility of conflict with local residents and stakeholders in the discharged river basin. In particular, in closed water areas such as Ise Bay and Seto Inland Sea in the Kinki district, there are more stakeholders affected by wastewater than other areas, it is imporatant to manage it properly. We have been conducting water resources management and risk assessment at the regional level thoroughly by making full use of internal knowledge such as regulatory trends cultivated through environmental management systems to follow the national and regional regulation and analysis based on Aqueduct, we are currently not facing confrontation with stakeholders involved in water resources. We consider potential supply interruption due to flooding at locations where our parts and units factories are located. We investigate our main partners' business-continuity frameworks against water risks such as tsunami, flooding and torrential rainfall by using and make evaluation by applying company internal knowledge. If necessary, we take actions to minimize these business impacts through measures such as diversification of sources. From FY2015, we started conducting on-site survey based on EICC code of conduct. We investigate countermeasures against discharging water

14 Issues Choose option Please explain Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Not relevant, explanation provided and water pollution and provide guidance for business partners with insufficient frameworks. In addition, we analyse the impact of water on products and raw materials, using Aqueduct for the location of our manufacturing plants and LCA evaluation of newly developed products. Ecosystem and habitat should be in the water risk assessment of the Fujitsu Group, as there is a linkage such as the possibility that the discharged river basin can affect the ecosystem when discharging wastewater exceeding the water control value. Against this backdrop, we are working on the biodiversity conservation and sustainable operation with the "Fujitsu Group Biodiversity Action Principle" in mind. We identify impacts on ecosystem by using WRI Aqueduct. And as part of our efforts to nurture water resources, we conduct social contribution activities such as planting trees and cleaning rivers worldwide. In domestic, all manufacturing plants practice cleaning surrounding river basins, such as the Aga River, Shinano River, Watarase River, Tamagawa River, etc. conducting several times a year. Through these efforts, we are able to communicate with local stakeholders and this helps understanding of risks imposed on our ecosystem. If wastewater that exceeds the water regulation value is discharged at its own facilities / business sites of some suppliers, there is a possibility of conflict with local residents and stakeholders in the discharged river basin. In particular, in closed water areas such as Ise Bay and Seto Inland Sea in the Kinki district, there are more stakeholders affected by wastewater than other areas, it is imporatnt to manage it properly. We have been conducting water resources management and risk assessment at the regional level thoroughly by making full use of internal knowledge including laws and regulations which are updated by one of our group companies who offers consulting service regarding environmental regulation. Aqueduct also provides great perspective and we have currently minimized a risk of confrontation with stakeholders involved in water resources. Our corporate responsibilities include securing health and safety of all employees, as well as respecting and protecting human rights in terms of water and health. We have incorporated health and safety evaluations in our corporate risk management process. Based on regulations, we have drawn up our own tap water management guidelines, and at each factory, water quality inspections are carried out daily, and tanks and equipment inspections are checked once a month by administrators. With operations based on such internal knowledge, it is possible to provide safe water and sanitation facilities. Insufficient water supply and water hazards such as flooding may decrease our sites' sanitary/alimentary capacity, which in turns may decrease employees' well-being. And as instructed by our general affairs division and internal regulations, we stored several days worth of potable water and food, as well as providing a safe water and sanitary environment. According to water-risk evaluation results of Aqueduct, there is no apparent water risk in our operations and suppliers locations. In additions, we have minimized our risks by referring to previous water hazards on our business. A 3-month flooding in Thailand in 2011 has forced us to revise our production and sales planning, caused decreasing our revenue. To prevent similar event, we have designed our factories so as to avoid risks in the future, and negotiated with local administration and build embankment. As the result, we are able to build a factory capable of securing employees' safety

15 Issues Choose option Please explain Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Not relevant, explanation provided and minimizing impact of large-scale flooding on main production equipment and products. Furthermore, water risks are unlikely to impact our growth strategies in future as we shift from Manufacturing to solutions and services. Non-manufacturing sites will still produce only extremely limited water impact. To be specific, our largest data center stands for only 1% water usage. In our value chain, some of manufacturing facilities and suppliers' business sites in China and Southeast Asia region such as Thailand and Philippines might have stricter water regulations suddenly in the future. A limit on production may destabilize parts and units supply. We conduct risk evaluation for places where these factories are located by using company internal knowledge, including laws and regulations which are updated by one of our group companies who offers consulting service regarding environmental regulation. Aqueduct also provides great perspective and we will be able to minimize a risk of confrontation with stakeholders involved in water resources in future. In addition, we are able to have discussions and obtain information about initiatives to counter water risks on regional level by participating in Business Alliance for Water and Climate Change. In our Fujitsu Group value chain, some of manufacturing facilities and suppliers' business sites in China and Southeast Asia region such as Thailand and Philippines might have stricter water regulations suddenly in the future. A limit on water may cause friction among stakeholders. We have been conducting water resources management and risk assessment at the regional level thoroughly by making full use of internal knowledge including laws and regulations which are updated by one of our group companies who offers consulting service regarding environmental regulation. Aqueduct also provides great perspective and we have currently minimized a risk of confrontation with stakeholders involved in water resources in future. With the above processes, we will be able to minimize a risk of confrontation with stakeholders involved in water resources in future. According to water-risk evaluation results of Aqueduct, there is no apparent water risk in our operations and suppliers locations. Furthermore, water risks are unlikely to impact our growth strategies in future as we shift from manufacturing to solutions and services. However, taking into consideration that future and sudden changes will occur, we will continue to conduct water risk assessment. In additions, we consider potential supply interruption due to flooding at our factories locations. We investigate and evaluate our main partners' business-continuity frameworks against water risks by applying internal knowledge. If necessary, we take actions to minimize these impacts through measures such as diversification of sources. From FY2015, we started conducting on-site survey based on EICC code of conduct. We investigate countermeasures against discharging water and water pollution and provide guidance for business partners with insufficient frameworks. Ecosystem and habitat should be in the water risk assessment of the Fujitsu Group, as there is a linkage such as the possibility that the discharged river basin can affect the ecosystem when discharging wastewater exceeding the water control value. However, taking consideration that our growth strategy shifts from manufacturing to solutions and services, it is difficult to assume that our business activities pose a risk or risk to ecosystems and habitats. Although we expect data centers will become more important, non-manufacturing sites will still produce only extremely limited water

16 Issues Choose option Please explain Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials impact. To be specific, our largest data center stands for only 1% water usage. In the water risk assessment using Aqueduct, no noticeable change in future water stress is expected in the river basin where Fujitsu's manufacturing facilities and suppliers operate, and we manage water in adequate manner. Thus we are not facing water risk to be considered in our business practices. Among our business sites, factories manufacturing semiconductors and printed circuit boards in particular consume large amount of high-quality purified water. Costs of procurement and discharging water affect manufacturing cost per unit. Therefore, it is important to maintain the water quality and keep the costs down. Personnel in charge from our company utilize our internal knowledge, cultivated through daily inspection work in line with internal guidelines formulated based on laws and regulations, to conduct scenario analysis on the quantitative and qualitative availability of water. For example, because there is no intake restriction of groundwater at business sites in Chubu district, we have conducted scenario analysis of groundwater use to lower procurement costs. With analyzing the impact on groundwater use for the area, we have started using groundwater. We record the amount of water withdrawal and implement appropriate and sustainable use and monitoring. In our value chain, some of manufacturing facilities and suppliers' business sites in China and Southeast Asia region (Thailand & Philippines) might have stricter water regulations suddenly in the future. A limit on production may destabilize parts and units supply. Therefore we carries out scenario analysis of the enhancement of regulation and financial implication for required new capital investment. We conduct evaluation for places where these factories are located by using internal knowledge including laws and regulations which are updated by one of our group companies who offers consulting service regarding environmental regulation. Aqueduct also provides great perspective and we have currently minimized a risk of confrontation with stakeholders involved in water resources. In additions, we are able to have discussions and obtain information about initiatives to counter water risks on regional level by participating in Business Alliance for Water and Climate Change. In our Fujitsu Group value chain, some of our manufacturing facilities and suppliers' business sites in China and Southeast Asia region such as Thailand and Philippines might have stricter water regulations suddenly in the future. A limit on water may cause friction among stakeholders. Therefore we carries out scenario analysis of the enhancement of regulation and possibilities of conflicts with stakeholders. We conduct evaluation for places where these factories are located by using Aqueduct and company internal knowledge, such as regulatory trends cultivated through environmental management systems to follow the national and regional regulation. Furthermore, we constantly verify legal and regulatory trends based on our environment management system process, so that we are able to take preemptive actions before implementations. According to water-risk evaluation results of Aqueduct, there is no apparent water risk in our operations and suppliers locations. Furthermore, water risks are unlikely to impact our growth strategies in future as we shift from manufacturing to solutions and services. However, taking into consideration that future and sudden changes will occur, we will continue the scenario analysis of

17 Issues Choose option Please explain Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other Not relevant, explanation provided water risk assessment. In additions, we consider potential supply interruption due to flooding at our factories locations. We investigate and evaluate our main partners' business-continuity frameworks against water risks by applying internal knowledge. If necessary, we take actions to minimize these impacts through measures such as diversification of sources. From FY2015, we started conducting on-site survey based on EICC code of conduct. We investigate countermeasures against discharging water and water pollution and provide guidance for business partners with insufficient frameworks. Ecosystem and habitat should be in the water risk assessment of the Fujitsu Group, as there is a linkage such as the possibility that the discharged river basin can affect the ecosystem when discharging wastewater exceeding the water control value. However, taking consideration that our growth strategy shifts from manufacturing to solutions and services, it is difficult to assume that our business activities pose a risk or risk to ecosystems and habitats. Although we expect data centers will become more important, non-manufacturing sites will still produce only extremely limited water impact. To be specific, our largest data center stands for only 1% water usage. In the water risk assessment using Aqueduct, no noticeable change in future water stress is expected in the river basin where Fujitsu's manufacturing facilities and suppliers operate, and we manage water in adequate manner. Thus we are not facing water risk to be considered in our business practices. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Choose option Please explain Customers Fujitsu's products include water-cooled server, which requires water during its operation. We use LCA to get an overall picture of the environmental burden and use WRI Aqueduct to understand water risks at our main customers' locations. For customers who are concerned about the high water risk in the future, we grasp the customer's request and strive to provide products with lower water usage.furthermore, we are researching about cooling methods other than water (aircooled and immersion) to reduce water footprints of our customers. On the other hand, increasing needs for waterresource management will bring business opportunities to our company. We analyze these changes in customers' needs by using our company internal knowledge, which we have gained by communicating with stakeholders. Since the water

18 Stakeholder Choose option Please explain Employees Investors Local communities NGOs Other water users at a local level issue has high regionality, each business site in various parts of the world is striving to grasp the demands through dialogue with customers daily. Insufficient water supply and water hazards such as flooding may decrease our business sites' sanitary/alimentary capacity, which in turns may decrease employees' well-being. We tap into our internal knowledge about equipment, safety, and sanitary managements to conduct daily inspection. And as instructed by our general affairs division and internal regulations, we stored several days worth of potable water and food, as well as providing a safe water and sanitary environment. Based on regulations, we have drawn up our own tap water management guidelines, and at each factory, water quality inspections are carried out daily, and tanks and equipment inspections are checked once a month by administrators. With operations based on such internal knowledge, it is possible to provide safe water and sanitation facilities to our employees. It is essential to disclose data about water so that our investors can evaluate Fujitsu Group's sustainability implementations comprehensively. To do that, we publish integrated report and sustainability reports, respond to CDP Water about our performance including water extraction rate, consumption, discharging water, and recycled water. We make sure that our and our suppliers' water extraction and discharging water do not violate society's good common sense, particularly quality of discharging water. To do that, we tap into our company internal knowledge and conduct continuous risk management. We have created manuals and conduct daily management by following these manuals, so that local society will not be affected by polluted water. In the event of an impact, we organize a briefing for local residents immediately. In 2012, groundwater contamination was confirmed at business site in the Chubu region, and the residents' briefing sessions regarding the current situation and countermeasures were held several times. We implemented countermeasures as stated at the briefing, and after that the water quality of the site is properly managed. We conduct continuous risk management of our and our suppliers' water extraction and discharging water, particularly quality of discharging water, so as not to betray local society's understanding and tolerance. We have held environmental dialogue 25 times in total since 2011, including water as theme, such as "effective utilization and contribution of water resources", "natural capital management". We also invite NGOs and inquire about their expectations on our ICT such as collecting information on catchment areas and measures against water leakage. Through these implementations, we nurture company internal knowledge about stakeholders' needs and conduct water-risk analysis. In additions, we are able to have discussions and obtain information about initiatives to counter water risks on regional level by participating in Business Alliance for Water and Climate Change. Other than conducting thorough water-quality management on our business sites' discharging water, we inquire local residents, corporations, agricultures, fisheries, and other water consumers about their concerns of our company. We continue our communications and investigations by tapping into our company internal knowledge, including insights gained through communications with stakeholders and on-site survey results based on our environment management system. We have held environmental dialogue 25 times in total since 2011, including water as theme, such as "effective utilization and contribution of water resources", "natural capital management". We also invite cooperation and inquire about their expectations on our ICT such as collecting information on catchment areas and measures against water leakage. Through these implementations, we nurture company internal knowledge about stakeholders' needs and conduct water-risk analysis.

19 Stakeholder Choose option Please explain Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities at a local level Other than conducting thorough water-quality management on our sites' discharging water, it is particularly important to adhere to regulations specified by local governments. We continue our communications and investigations by tapping into our internal knowledge, including legal trends and communications with local governments. In several business sites in the Kinki region, we have concluded agreements with local governments and Fujitsu, and we are strictly managing water quality than regulations. One office has exceeded the agreed value with the municipality of n-hexane extract material, we follow up for not exceeding while consulting with the municipality. When organizing briefings with stakeholders on the topic of water, we also invite experts with prior experience in regulatory administration and inquire about their expectations on our company. Through these implementations, we nurture company internal knowledge about stakeholders' needs and conduct water-risk analysis. Other than conducting thorough water-quality management on our sites' discharging water, it is particularly important to adhere to regulations specified by local governments. We continue our communications and investigations by tapping into our internal knowledge, including legal trends and communications with local governments. In several business sites in the Kinki region, we have concluded agreements with local governments and Fujitsu, and we are strictly managing water quality than regulations. One office has exceeded the agreed value with the municipality of n-hexane extract material, we follow up for not exceeding while consulting with the municipality. When organizing briefings with stakeholders on the topic of water, we also invite experts with prior experience in regulatory administration and inquire about their expectations on our company. Through these implementations, we nurture company internal knowledge about stakeholders' needs and conduct water-risk analysis. We conduct continuous risk management of our and our suppliers' water extraction and discharging water, particularly quality of discharging water, by tapping into our company internal knowledge, so as not to betray local society's understanding and tolerance. For example, at business sites in the Tohoku district, we pay levies to the administrative association of the industrial estate according to the amount of wastewater. We consider potential supply interruption due to flooding at locations where our parts and units factories are located. We investigate our main partners' business-continuity frameworks against water risks such as tsunami, flooding and torrential rainfall by using and make evaluation by applying company internal knowledge. If necessary, we take actions to minimize these business impacts through measures such as diversification of sources. From FY2015, we started conducting onsite survey based on EICC code of conduct. We investigate countermeasures against discharging water and water pollution and provide guidance for business partners with insufficient frameworks. We prepare a business-partner list detailing their locations and emergency contacts so that in an emergency (for example: Flooding in Thailand in 2011) we can grasp and avoid the influence, such as judgment on necessity of procuring substitutes from other companies and changing production lines, etc. Our procurement department keeps dialog and research, so that the water intake of our company and the suppliers continue without any problem in terms of both quantity and quality of water supply in the region. We have held environmental dialogue 25 times in total since 2011, including water as theme, such as "effective utilization and contribution of water resources", "natural capital management". We also invite water utilities/suppliers at a local level and inquire about their expectations on our ICT such as collecting information on catchment areas and measures against water leakage. Through these implementations, we nurture company internal knowledge about stakeholders' needs and

20 Stakeholder Choose option Please explain Other conduct water-risk analysis. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Please explain Further Information Module: Implications Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? No W3.2

21 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk We define substantial change as large-scale financial impact over several months. This applies to both of direct operations and supply chains. We set our minimum threshold at 100 billion Yen of sales. For example, in 2011, Chao Phraya River in Thailand was overflowed with flooding. We were forced to halt our operation temporarily, causing large impact on our business. We estimated the total damages to reach the Net Sales of 28 billion Yen decrease. If we compare this case with our threshold, we can conclude that it does not cause a substantial change on our business. W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure; and the proportion of company-widefacilities this represents Country River basin Number of facilities exposed to water risk Proportion of companywide facilities that this represents (%) Comment W3.2b For each river basin mentioned in W3.2a, please provide the proportion of the company's total financial value that could be affected by water risks Country River basin Financial reporting metric Proportion of chosen metric that could be affected Comment

22 W3.2c Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential impact to your direct operations and the strategies to mitigate them Country River basin Risk driver Potential impact Description of potential impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential impact to your supply chain and the strategies to mitigate them Country River basin Risk driver Potential impact Description of potential impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure

23 Primary reason Please explain Risks exist, but no substantive impact anticipated In essence, our business is not water-intensive. However, we use large quantity of water in manufacturing, and water constraint could be a risk. Nevertheless, we did not find any apparent risk based on our risk evaluation results. We conduct evaluations and make judgement based on the following factors: investigation of monthly water management status; annual internal audit of environment management system based on ISO14001; LCA of each newly developed targeted product; analysis result of WRI Aqueduct. Furthermore, we report our water management status in the Environmental Management Committee, which is led by our president, and discuss and take effective implementations whenever necessary. We have minimized risks by referring to previous water risks on business and taking appropriate measures. In 2011, a 3-month flooding in Thailand has forced us to revise our production and sales planning, caused decreasing revenue and increasing cost. To prevent similar event, we have placed all our production equipment on the second floor and negotiated with local administration and built embankment. Furthermore, our business strategies aim to shift our core from manufacturing to ICT solutions and services. Water risks in our growth strategies are decreasing relatively. Although we expect data centers will become more important, non-manufacturing sites will still produce only extremely limited water impact. To be specific, our largest data center stands for only 1% water usage. W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain Risks exist, but no substantive impact anticipated We define our main business partners (98.3% of our total procurement cost) as those involving in our main products and those conducting more than 50 million yen of transactions with us annually. We include them in our annual environmental activities survey targets, which investigate annual water usage and conditions of water-resource conservation. We checked that our business partners have water risks such as tsunami, flooding, and torrential rainfall in their risk forecasts. These risk forecasts are in impact investigation target and emergency activation standards of business continuity planning. We prepare a business-partner list detailing their locations and emergency contacts so that in an emergency (for example: Flooding in Thailand in 2011 and Typhoon No.10 in 2016) we can investigate local situations of our business partners immediately and secure continuity of our procurements. We communicate frequently with our business partners in Thailand, where previous risks occurred, to verify absence of risks. Moreover, we build a strong business-continuity structure by diversifying our sources. Based on these risk analysis and structure building, we do not discover any major risks.