FUJITSU TEN GROUP Corporate Data

Company Name Ten Limited

Locations Head Office 2-28, Gosho-dori 1-chome, Hyogo-ku, 652-8510 Tel. +81-78-671-5081 Head Office Plant 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe 652-8510 Japan Tel. +81-78-671-5081 Nakatsugawa Plant 2110, Naegi, Nakatsugawa, Gifu 508-0101 Japan AVN Tel. +81-573-66-5121

Representative President and Representative Director Keijiro Katsumaru

Date Established October 25, 1972

Business Activities Manufacture and sales of infotainment equipments and electronic devices

Main Products Infotainment equipments Audio and car navigation equipments For automotive use: Audio products Audio-visual products Navigation systems For home use: Time Domain audio system 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)

Capital ´5.3 billion (as of March 31, 2005)

http://www.fujitsu-ten.co.jp/english

Fujitsu Ten Group Sustainability Report 2005

( ) Vehicle Security System VSS Editing Policy Purpose Our purpose in publishing this report is to attempt to communicate with a large segment of the public by describing our ideas and efforts on various aspects of society, the economy and the environment by positively disclosing corporate information.

Subjects for Distribution Distribution is to every kind of stakeholders, including customers, business contacts, employees, shareholders, community members and government administrations.

Content of the Fiscal Year 2005 Version · A more detailed description of the “Fujitsu Ten Corporate Vision, VISION 2012”. á Ideas and efforts towards compliance. · A newly added “Highlights” page, introducing our major activities of fiscal year 2004. á A detailed explanation of business activities promoting an understandable corporate image. á An environmental report includes graphs and charts for easier understanding. Millimeter-wave radar Reference “Guideline for Environmental Reports (Fiscal Year 2003 Version)” by Ministry of the Environment http://www.env.go.jp/policy/report/h15-05/all.pdf

Communication We consider this report to be an important communication tool between you and Fujitsu Ten Group. Please complete the inserted questionnaire so we may learn your important opinions.

Report Scale The tabulated data introduced in this report is interlocking data for Fujitsu Ten and its group subsidiary companies (1 company, 3 sales companies and 5 others in Japan, as well as 6 manufacturing companies, and a total of 10 sales and other companies abroad) as of fiscal year 2004 (from April 1, 2004 to March 31, 2005).

Part of the achievement data refers only to domestic information in Japan and singular achievements of Fujitsu Ten. We consider this an issue of future concern. CONTENTS 1 Corporate Data Fujitsu Ten Group Sustainability Report 2005 Editing Policy/Report Scale 2 Table of Contents 3 Commitment from the Top 4 VISION 2012 [Corporate Philosophy] 5 VISION 2012 [Corporate Culture] 6 VISION 2012 [Enterprise Vision] 7 A Corporation that Fulfills Social Responsibilities Fujitsu Ten Business Activity Directive Risk Management Protection/Reinforcement of Intellectual Property 8 2004 Highlights 9 Social Performance Together with Our Customers Customer Focus, Highest Possible Quality 10 System of Service 11 Together with the Public and Community Activities contributing to the public and community 12 Environmental communications Environmental contribution activities 13 Together with Our Employees New Human Resources System New Training System 14 Employment Support System Occupational Safety and Health Promotion 15 Economic Performance Business Activities Fujitsu Ten, the Global Brand for Audio Visual Products 16 Financial Standing 17 Environmental Performance Environmental Policy Fujitsu Ten Group Global Environment Charter Environmental Effort Concept

We adopted the brand name, ECLIPSE, using the image of a “fierce 18 Environmental Management blaze that outclasses and outstrips others,” and applied it to our audio Promotional organization visual products. The unique concepts and products based on this Environmental Management System (EMS) image have garnered a terrific reputation throughout the world as a global brand. 19 Status of ISO 14001 Certification Environmental Audit Environmental Education Training for Emergency Measures 20 Green Procurement Green Procurement Rate Environmental Contribution Awards 21 Goals/Achievements/Evaluation 4th Environmental Action Plan Goals and Results 23 Environmental Accounting 24 Material Volume Effects and Environmental Impact Improvement Indicators 25 Business Activities and Their Main Environmental Aspects 27 Green Products Efforts Regarding European ELV Directives 28 Product Environmental Information System 29 Miniaturizing 76GHz millimeter-wave radar, Development of the TV/GPS Integrated Film Antenna (a world first), Controller for Hybrid Vehicles, Reduction of Packaging Size, Lifecycle Assessment Efforts (LCA) 30 Green Factory Global Warming Countermeasures Efforts for Energy Saving at Business Offices 31 Waste Reduction Measures 32 Toxic Material Reduction Measures

33 Data Collection Environmental Data of Subsidiaries 34 List of Fujitsu Ten Group Commitment from the Top For Our Customers, Society and This Planet… We work with the utmost sincerity in fulfilling our social responsibility.

Assisting our customers, society and the environment through our policy of “sincerity” It was 1955 when we began supplying radios to automobile manufacturers. Over those 50 years, Fujitsu Ten Group has grown right along with the development of the automobile industry. We can credit many reasons for our developing into a good corporation. But I think the largest factor is that we have always faithfully upheld our corporate philosophy - “Assisting our customers and society through our policy of ‘sincerity’”. As a manufacturer of equipment for audio navigation, infotainment and automobile electronics, what can we do to assist our customers and society? One example sees us trying to make safer and better quality products as well as lowering environmental burden through the life cycle of our products, from development, planning and design through their disposal. Additionally, we are now trying to establish fair, transparent business management, plus developing a respect for human rights toward our employees and establishing appropriate work places from society’s point of view. All of these activities have been pursued in the spirit of “sincerity”. Keijiro Katsumaru President and Representative Director, Fujitsu Ten Limited A Corporation that Fulfills Social Responsibilities In October 2002, taking note of the 30th anniversary of Fujitsu Ten, we established our group’s 10-year vision, “VISION2012”, to provide a clear picture of how we should advance in the next decade. We aspire to become a corporation to assist our customers and society through our “sincerity”. That means supplying products that surpass our customers’ expectations. Keeping that vision in mind, we have steadily developed new products that identify our domain, in other words, merge “Entertainment,” “Automotive Electronics” and “Information Technology”. We have also been actively establishing a relationship with society, including the amalgamation of automobile control and ITS (Intelligent Transport Systems). This includes implementing the enhancement and thoroughness of compliance, the protection of personal information, global environmental preservation and partnership with the local community. On the other hand, we feel it’s important to train personnel as part of our social responsibilities as a corporation, therefore allowing each employee to carry on establishing a work place they can be proud of and prove themselves.

We believe that sincerely carrying out this vision is the shortest way to realize a sustainable society. And the realization of a sustainable society is our responsibility, as well as “sincerity” to our stakeholders. Hopefully, more people will be able to understand our mission and supply us with opinions and requests. Thank you very much. August 2005 Fujitsu Ten Group 10-Year Vision, “VISION 2012”

In October 2002, Fujitsu Ten celebrated its 30th anniversary. To help steer the course for the upcoming decade, the company devised the “Fujitsu Ten Corporate Vision (VISION 2012)” to help reach its ideals as a global corporation. Fujitsu Ten Group will fulfill our social responsibility through each employee reviewing and committing to our corporate vision.

1.1. CorporateCorporate PhilosophyPhilosophy Corporate Philosophy We will work with the utmost sincerity to support our customers and contribute to society.

“Sincerity is the Way of Heaven. Making oneself sincere is the Way of Man.” That’s a passage in the Confucian text “The Doctrine of the Mean”. Heaven symbolized greatness and supremacy. The Japanese word for “heaven”, “ten”, has been incorporated into our trademark and symbolizes our attitude for not only our own products, but those of our ancestor companies, Kobe Industries and Kawanishi Machine Works. Fujitsu Ten Group hopes to continue cherishing “sincerity” as it implements methods to reach heaven (ultimate/supreme) in its production, another way to help our customers and society.

We always think first how to Customer best serve our customers, to Focus, Highest create products of the highest quality that exceed our Possible customers’ expectations. Quality

Recognizing we are a part of Responsibility society, we shall fulfill our and social responsibilities and Contributions contribute to our society to Society through our corporate activities.

Each and everyone shall take Work pride in their work, and utilize Values their own abilities to realize a workplace where everyone shares in our achievements. Fujitsu Ten Group 10-Year Vision, “VISION 2012”

2.2. CorporateCorporate CultureCulture Corporate Culture Promoting a Positive and Active Corporate Culture The keywords are “Challenge, Originality, Bright & Speedy, Accomplish and Encourage”

How should a corporation fulfill its social responsibilities so it is highly valued by customers and society, while winning their confidence? Fujitsu Ten Group seeks the answer to this question through 4 words and 1 phrase based on a Japanese expression. By taking the meaning of each of them into our heart, we hope to create a constructive and active corporate culture.

We shall not only accept change but daringly embrace it.

We shall, with a conviction “to enjoy new opportunities”, improve the current situation through continual change.

Creating originality.

We shall, through our wealth of creative ability, keep creating added value that was previously unseen.

Cheerful, fun, fast

We shall interact with people cheerfully, cooperate willingly and act speedily.

Achieving goals.

Conscious of our role and responsibilities, we shall achieve the goal of exceeding even the high expectations of our customers.

We shall encourage each other by engaging in lively conversation.

Leadership, Respect for the individual, Teamwork While taking charge of our own activities, we shall endeavor to become leaders through introducing innovations, while respecting each person’s individuality and cooperating so as our power as a team is manifested.

Global Activities Overcoming the barriers of different cultures and languages, we shall respect, cooperate and encourage each other so as to achieve vibrant operations throughout the world.

A Lively Organization and Management Through a feedback system that is both open and clearly understandable and a non-hierarchical and flexible organization, we shall discover and foster the initiative and individuality of our staff. 3.3. EnterpriseEnterprise VisionVision Enterprise Vision To design and propose a future lifestyle for car users that will meet with the approval of the global community.

The predecessor of Fujitsu Ten first offered audio equipment for automobiles in 1955. In the half century since, through our relationships with automobile manufacturers and users of our products, we have accumulated a wide range of knowledge, as well as abundant experience and know-how regarding automobiles and their manufacturing. We receive particularly high ratings for our unique in- vehicle audio and information communication technologies. Our intent is to help human beings, automobiles and society evolve into a new paradigm.

Business Objectives Actions

To pursue the fundamentals of quality To be ranked No.1 production (=QCD). To establish brand recognition. by customer To strengthen global marketing. To create a cutting-edge developmental satisfaction. organization and increase developmental efficiency. To double efficiency To achieve the most efficient procurement To double growth and manufacturing throughout the world. To provide quality service.

Fujitsu Ten Group is moving into a new business field that integrates A New Business Field “Entertainment,” “Automotive Electronics” and “Information Technology”.

To increase the comfort, safety and envir- Ensure safety onmental friendliness of auto mobiles. and reliability To provide more user-friendly human in- terfaces. To seamlessly integrate the automobile into the ubiquitous network society. To support more advanced automobiles Create a Protect the through applied IT (Information Technolo- gy) and ITS (Intelligent Transport System) Innovations in comfortable global human interfaces mobile space environment A Corporation that Fulfills Social Responsibilities

Fujitsu Ten Business Activity Directive [Basic Principle] Risk Management

From administrative management under legal control to self- Fujitsu Ten organized a “Risk Management Committee” to responsibility under deregulation. Fujitsu Ten established the conduct wide-ranging and flexible risk management. This includes “Fujitsu Ten Business Activity Directive” on April 1, 2002, in order to designing a basic policy for the entire group to prevent every stay abreast of the times. The principle describes the way each assumable risk and to take quick action if such a risk occurs. It employee should try to act in everyday life, mainly from the also creates measures to prevent secondary damage and viewpoint of compliance and corporate ethics. recurrence of risks, and established a “Risk Management The basic principle is comprised of 4 items; (1) respect for Secretariat”, an actual working level administrative organization. human rights, (2) observance of law and social imperatives, (3) fair Additionally, we make doubly sure to handle and transparent business activities, and (4) inhibition of personal environmental risks by conducting simulator acts involving falsehoods and infidelity. The objective of the response training for potential problems like principle is to become a corporation that is trusted by both the earthquakes, fires and chemical spills. We’ve also international and local communities through open and fair corporate set down measures for water quality, air, land and activities. This principle is applied to all employees in our office and groundwater pollution and established factory Water-Discharge Exercise subsidiary companies. environmental assessment criteria. (at Head Office Plant) Fujitsu Ten Business Activity Directive Basic Principle Risk Management System at Fujitsu Ten

Respect for human rights Management Committee

Observance of law and social imperatives Risk Management Committee Establish fundamental directives and manage overall coordination and cooperation for the entire group

Fair and transparent business activities Report important matters Direction Risk Management Secretariat Inhibition of personal acts involving falsehoods and infidelity Feedback and coordination Directions and reforms ersonnel, Natural disaster, accident Product and service issues Environmental issues Network issues Corporate negligence, crime P labor issues Offices [Action Directive] risk breakout Information about Information The corporate action guideline of Fujitsu Ten is comprised of 3 chapters, “Actions in Business Activities,” “Relationship with the ersonnel Division Disaster Prevention Committee Product Liability Committee Guarantee Safety Export Management Committee Global Environment Committee Information Advancement Society” and “Relationship between Employees and the Company, Promotion Committee General Division Affairs P Each Office Head as well as their Personal Actions”. We conduct publicity activities Feedback and coordination and audits as part of our verifying function of thorough Workplace Frontline (including group companies) familiarization and observance.

Fujitsu Ten Corporate Performance Guideline Stakeholder and Action Guideline Protection/Reinforcement of Intellectual Property International Community At Fujitsu Ten, we make an effort to protect intellectual property based on two issues; “protecting our company rights” and Local Environment Product Consumers “respecting other companies’ rights (no infringement)”. A Patent Community Safety Promotion Conference is held on a regular basis (once every 3 International Rules months) to investigate other companies’ patents and to examine Intellectual Transparency the directional movement of patent acquirement, while at the same Administration/ Property Government Customers time, focusing on emphasized development themes. The Information Fair conference also tries to make strategic reinforcement in order to Disclosure Fujitsu Ten Competition obtain new intellectual property rights. Shareholders Competitors Firm Regarding the development of products, the Intellectual Stand Fairness Human Property Department conducts advance investigations to avoid Rights infringing on other companies’ rights, so developers can Antisocial Personal Traffic concentrate on development and design without being bothered by Profit Safety Suppliers Power other’s patents. At the same time, the department works to acquire higher level intellectual property rights so that they can negotiate Employees from a more advantageous position when technical cooperation and/or cross-licensing issues with other companies arise. 2004 Highlights

2004HIGHLIGHTS Fujitsu Ten Group has begun to undertake various new efforts to Towards a New Fujitsu Ten Group help our customers, employees and society. Let us introduce some of them.

10th Anniversary of Kobe Music Station Inauguration of the “Good Company We helped Kobe Music Project (GCP) from the Viewpoint of Women” Station, which originated in 1994 To positively address gender gap issues at our work places, as a charity concert, celebrate its Fujitsu Ten is promoting “Positive Action”. Part of this reaction 10th anniversary. With special led to the establishment of a new “GCP Promotion Division” in guest, Terumasa Hino, one of April of 2005, to promote the Good Company Project from the Japan’s major jazz trumpeters, Viewpoint of Women. Members explore how to garner a good the concert became a wonderful corporate image from the viewpoint of women and make the commemorative event. work site a place where not only women, but anybody, can prove themselves and work productively. Details P 11

Supporting the “Expo 2005 International Workshops” at Expo 2005 Aichi Japan Fujitsu Ten supported concerts held at the Expo 2005 International Workshops at Expo 2005 Aichi Japan, offering use of our high-end type speakers, TD712z of the ECLIPSE TD Series, to assist the performing musicians and other GCP Kickoff Meeting sounds created for the stage. Through the music, we delivered a message of “Creating a Sustainable Society”, Details P 14 which was the exposition’s theme, to many people from Japan and abroad.

Development of the Small Type High Performance Reinforcing Supply “On-Board 76GHz Millimeter-wave radar” Chain Management This millimeter-wave radar uses electric To promote the further development of green waves to measure the distance between you products, the company revised its “Green Procurement and the car in front of you, the relative speed Guidelines” in May 2005. We will continue to increase and direction. It is seen as a key device in the our environmental considerations, while ensuring a next generation of automotive safety systems. system of cooperation with the companies we procure To contribute to a cleaner environment, further products from. miniaturization is expected. Details P 29 Details P 20

Receiving Various Awards around the World Activities of Fujitsu Ten Group companies in various fields have been honored.

Awards When Received Awards When Received

Headquarters Minister of Health, Labor and Welfare Award October 2004 The Best Foreign Investment Corporation in Tianjin June 2004 Nakatsugawa Dangerous Object Safety Excellent Foreign Investment Corporation in China June 2004 May 2004 Association Chairman’s Award Base for Labor Union Reemployment August 2004 A Letter of Appreciation for the Global Tianjin 15 Advanced Companies of Merit August 2004 October 2004 Nakatsugawa Environment Beautification Service Recommendation for Reemployment August 2004 Site Awards for Traffic Safety Service November 2004 15 Advanced Persons of Merit August 2004 Gifu Prefecture Environmental Promotion Person of Merit Award December 2004 June 2005 Association Award 2003 TOP PHILIPPINE Philippines October 2004 Letter of Appreciation from the Minister of EXPORT PERFORMERS BRONZE AWARD Tochigi Site July 2004 Health, Labor and Welfare Mexico Safe Hygiene/Health Management Award March 2005 SocialPerformance “recurrence prevention”. r totaketeam tries press for zero defectives. isforpreventingThe mainthrust memberstotry problems bases inJapan. We willexpand thiscampaigntoour overseas basesoneatatime. company.” Basedonthisconcept,Fujitsu Ten its “ Group started management. on ISO9000(2000version) andQS9000(1998version). This will promoteyet quality morestrict QualityManagementSystemStandard,ISO/TS16949,whichwas enactedbased acquire International ISO9000andQS9000.acquiring 2005,we established InApril the to TS ProjectPromotionDepartment customer trust. withfromQCcircle, we have Starting our emphasis onqualitycontrolby confirmed ather thantaking actionafterthey occur. Therefore, it’s aconceptof “advanced prevention” rather than A á We auditthe Customers’ Expectation Cycle for QualityImprovement udit Scene fully. customers more satisfy our improve itto engagement and conditions of Acquiring Certification ofInternationalQualityManagementSystemStandardsAcquiring Certification The “If allemployees toproduceanon-defective work product,therewillbenodefects intheentire Since itsfoundation, Fujitsu Ten Grouphasconductedthoroughqualitymanagementtogain To the Starting ev We To Social Performance Customer Focus, Highest Possible g en betterthanthey imagine. trytocreatewhatourcustomersdesire, ether toReach Zero Defects ∑ g 0=0 Campaignisconductedfor 3timesover ayear andahalf. Inthefinal(3rd)stage, the and Needs Quality ether withOurCustomers ∑ 0=0 CampaignAllofUs Working Improvement A udit/ of ourinvolvement” for qualityimprovement. those voices inourproductionprocess” and “audit andimprovement v design, procurementandproduction”, ourcustomers “hearing base/system”, “quality assurance ateachstageofdevelopment, To Highest Possible Quality”,andwillstillmaintainthisobjective. done underourbasicmanufacturing slogan, “Customer Focus, theirexpectations”.the bestqualityproductssurpass This was wo Long before theestablishment of “VISION 2012”,Fujitsu Ten Group oices inaquick, make accurate mannerandclearly gooduseof á We listentoourcustomersina

rk do this, we usearotatingcycle,of comprised “establishing a to reflecttheminourproducts. quick, definitemannerinorder ed to “consider thebestinterestfor ourcustomersandcreate Establishing theSystem Market Feedback Establishing aBase Customer P Enlightenment Highest Quality Focus, ossible Education/ á Fostering anawareness toward quality á Maintainingqualityregulation á Establishment ofaqualityassurance system Quality Assuranceduring improvement Development andDesign ∑ during Manufacturing 0=0 Campaign” fromJuly 2004atour Quality Assurance á The operating processensurestheman- f ufacture ofgoodproductswithoutde- ects atproductionandinspectionsites. á Productassess- á Gooddesign,good Experiment FacilityExperiment WaveElectric quality production. ment assureshigh performance. ev ducted toestablish spections arecon- w discussion and ell-envisaged in- en betterquality Social Performance

Head Office/Plant Manufacturing Plant Sales Office Sales Representative Field Support Center Research and Development Base Logistics Center

System of Service

Higher Customer Satisfaction Customer Service Center While Fujitsu Ten Group offers high quality, high-performance Fujitsu Ten set up a Customer Service Center where operators and highly functional products, we also try to offer sensitive, quality respond to customer inquiries. Because some inquiries need service for customer satisfaction. technical support, an advisor is available for every 2 on-duty operators. They can respond to technical inquiries as well as to more detailed issues, in cooperation with the design division. Fujitsu Ten Received Top Customer Evaluation for Our Posterior Mounted Car Navigation Repair System Fujitsu Ten’s service system received top evaluation from Responding to Complaints customers for the Posterior Mounted Car Navigation System We sincerely respond to complaints by putting ourselves in our Category of the “5th After Service Survey”, compiled by Nikkei customers’ place. Even if a customer makes a complaint that we business magazine. We take inquiries from customers about our determine to be invalid, we try to appropriately fulfill our products at the Customer Service Center, which coordinates the accountability as a manufacturer by fully explaining the situation to efforts of 7 Field Support Centers around Japan. They send out them in a manner they can understand completely. staff to check on product conditions. Then, the nearest certified When a distributor receives an invalid complaint, we try to service shops (105 in Japan) take care of any needed repairs. improve the situation by offering product information to prevent a We believe this high evaluation from our customers came from recurrence for that or future products. our Field Service Center system’s willingness to go out and check on condition and the high technical capabilities of the cooperating certified service shops.

Evaluated the Best by Automobile Manufacturer’s in the Automobile Audio Navigation Category Since our primary products are in-vehicle articles, we supply products to automobile manufacturers. We received top evaluation from automobile manufacturers we supply our products to in total ratings for delivery date, quality, price and CS in the Audio Navigation Category. (Fiscal year 2004) Social Performance Together with the Public and Community

Activities contributing Fujitsu Ten is conscious of being a member of society, taking responsibility for this membership as well as contributing to society through corporate activities. to the public and Under the concept of “contributing to society through sound (music),” Fujitsu Ten Group, as a community corporation providing sound related products, has been involved in various musical events, such as holding charity concerts. We also participate in other types of activities, including cooperating with motor sports and active involvement in cultural and social welfare activities.

“Kobe Music Station” Company Volunteer Circle Participates Four times a year, Fujitsu Ten Group hosts “Kobe Music Consolatory Visit and Festivals Station” charity concerts. In 2004, this concert series celebrated its At our Nakatsugawa Plant, in addition to events and activities 10th anniversary. In that decade, it has grown into an historic and sponsored by the plant and labor/management cooperation, a artistic cultural activity. Kobe is known as the cradle of jazz music company volunteer circle carries out their own social activities. in Japan, and we offer local citizens jazz and other types of music Every month, they send birthday cards to welfare facilities and at low cost (1,000 yen). make consolatory visits to promote exchange with the people there. In the first stage, we offer a place for young musicians to play in In July and August every year, they support summer festivals and public. The second stage features professional, front line Bon Festival Dance at these facilities. musicians. Set-up and operation are mainly handled by our During cherry blossom season, members of the Tea Ceremony company volunteer group, while all admission fees collected are Club participate as volunteers for outdoor tea ceremonies held by a used for social action programs. For example, we donated musical local special elderly nursing home. instruments and audio equipment to welfare facilities through the Kobe City Welfare Council. Additionally, we sponsored activities supporting these concerts and musical events, held at the sites where we donated these instruments and equipment. (See page 8, “2004 Highlights” for more information about the 10th anniversary event)

Supporting Earthquake and Typhoon Victims

through Fund-Raising Activities Participating at the Oiden Festival (Nakatsugawa Plant) When the Great Hanshin/Awaji Earthquake occurred 10 years ago, Fujitsu Ten and its employees were greatly encouraged by the support from both inside and outside Japan for the revitalization of Planting Trees at Local Corporate Sites in China our head office plant in Kobe. To show our appreciation for this Fujitsu Ten Group’s local corporations in China, Tianjin Fujitsu warm consideration, we conduct programs to support victims of Ten Electronics Co., Ltd. and Fujitsu Ten Electronics Ltd. earthquakes and other disasters. contributed to the environment by planting trees at their industrial Recently, our bases in Japan and overseas supported activities complex. It’s our pleasure to see this first step in an effort to for victims of a typhoon in Hyogo Prefecture, the 2004 Mid Niigata surround the entire plant complex with greenery. prefecture Earthquake and the Sumatran earthquake and resultant tsunamis in the Indian Ocean.

A tree planting session in China

Collecting donations from employees arriving at work Social Performance

Fujitsu Ten Group considers the disclosure of environmental information as one of the most important Environmental factors of corporate social accountability. Therefore, we openly introduce our environmental information communications through our Sustainability Report and other media. At the same time, to keep our employees in the group aware of the importance and concept of participating in environmental preservation activities, we disclose environmental information through our in-house newsletters and intranet.

Sustainability Report (this report) Environmental Month/Safe Environment Week Since 2000, we have published our “Environmental Report”, As part of environmental month in June every year, there are using it to release the group’s environmental information and various events held in Japanese factories, including small scale distributing it to our stakeholders. environmental matter exhibitions. Beginning with this 2005 version, we have changed the At FTTL (Thailand), a Safe Environment Week has been Japanese title of this “Sustainability Report”, using it not only to established in December to conduct enlightenment activities, describe environmental information, but social performance as well. including a recycling competition. Previous issues of the “Environmental Report” and “Sustainability Report” have been released on our website. You can read the English version (excerpts) there. (English version for fiscal year 2005 is scheduled for release in October) Fujitsu Ten Group is willing to actively communicate with our stakeholders rather than facilitating one-way information. Please feel free to send us your opinions and comments about our Sustainability Report.

To send your opinions and comments, please go to our website: Small scale environmental subject exhibition http://www.fujitsu-ten.co.jp/ecology/

Public access website

External Public Relations Record When Issued Content June 2004 Conducted monthly Local Cleaning Operation environmental event August 2004 Issued Environmental Accounting for Fiscal Year 2003 and Environmental Management Report for Fiscal Year 2004 November 2004 Conducted Mount Rokko Cleaning Hike November 2004 Conducted the 12th Local Cleaning Operation at the Nakatsugawa Plant March 2005 Conducted a commuting route cleaning event

At Japanese factories of Fujitsu Ten Group, in-premise afforestation activities are promoted in Environmental conjunction with local residents that involve cleaning areas surrounding our factories. contribution activities Social Performance Together with Our Employees

Manufacturing starts by nurturing employees. We promote new systems and workplace development to do this. In April 2000, Fujitsu Ten Group revised its overall human resources and education systems, allowing formation of a workplace where each employee can work with pride and prove themselves through the pleasure of accomplishment. Additionally, we emphasize establishing an environment that lets our employees work spiritedly in safe, hygienic conditions.

New Human New Training System Resources System

Training Personnel who “Receive, Create an Atmosphere for Think and React by Themselves” Learning and Nurturing Employees The new human resources system promotes 3 concepts, To train personnel who “receive, think and react by themselves” “Implementing a Performance-Based Philosophy,” “Promoting under the new human resource system, Fujitsu Ten Group reviewed Independence” and “Training Professionals” to shape personnel who the previous training system to reinforce and enhance it. The basic “receive, think and react by themselves”. Therefore, posting, training, concept of the new training system is two-fold: to create an evaluation, defining roles and employees’ working conditions are performed atmosphere for learning in which employees voluntary work toward with these concepts in mind. By doing so, we can maximize the potential of their career development, and an atmosphere for nurturing each employee and flexibly respond to various work methods (type of employees in which their superiors actively support their careers. employment), while valuing each worker’s desire for rewarding work. Competency Enhancement through Training 3 concepts to train personnel for Each Rank and Class The new employee training system categorizes employees into Implementing a Performance-Based Philosophy “Trainees,” “Mid-ranking Employees” (class 4, 5 and 6) and Erasing the seniority factor, treating employees based “Executives” (class M1, and M3) and holds separate training on achievement and procedure sessions for each rank and class. The concept is to increase corporate power by ensuring that employees learn required Promoting Independence knowledge and skills to do their tasks properly. Voluntarily exhibiting one’s work ability and self-responsibility Manufacturing is Related to Training Personnel. Training Professionals Further Reinforcing and Enhancing Training Content Establishing professionalism that can be useful to outside parties. As society increasingly becomes borderless, talented people who can deliver outstanding performance on a global scale and manufacturing products with special features that best international Using a Performance-Based Philosophy to Train Personnel competition become a necessity. So are people who can accurately When the annual policy is announced in the management plan, each judge future trends and actively promote new products and ideas. department compares the policy and the role of its department to set up Fujitsu Ten Group actively pursues 3 personnel training their objectives. Once the department’s objectives are determined, each concepts. They are “Global Human Resource Development” in employee meets with their superior to set up individual objectives. order to train personnel who can actively work worldwide, This “performance-based philosophy” at Fujitsu Ten Group attaches “Professional Human Resource Development” to train experts who importance not only to the basic idea of how many of their objectives has can offer new advantages to customers, and “Training Business each employee achieved (every 6 months), but also evaluations on the Leaders” to train people who can powerfully take over next process of meeting objectives. Therefore, this system is not only a generation leadership roles. With these 3 concepts, we are trying judgment tool looking at results, but also a way to allow personnel to to maximize and reinforce our personnel training program. examine how they themselves can progress towards their objectives, implement ideas and take individual action within a 6 month period. Personnel Training Program

Conducting Fair Assessments Using an Objective Management System and Assessment Committee Training Business Leaders Training Professionals Training people who demonstrate Training people who can offer new A performance-based philosophy doesn’t function if it doesn’t leadership and promote business advantages to customers as developments and improvements professionals in specific areas. conduct fair and accurate assessments. Moreover, such assessments may decrease employees’ motivation. The Objective Management Training Globally Active People Training people who have the will and ability to get things done on a global scale System means that human resource assessment at Fujitsu Ten is not Competency Reinforcement Program one way, but requires employees to meet with their superiors prior to Learning the knowledge and skills necessary for each rank and class assessment. After an assessment is made, the assessment committee holds meetings to notify the employee of the results of their evaluation Creating a Learning Atmosphere Creating an Atmosphere to Train Personnel from his/her superior. After notification, the committee conducts People who voluntarily work on their career development Supporting Subordinates in their Careers questionnaire surveys regarding the results and meetings with the Foundation superior to ensure fair evaluation. Social Performance

Fujitsu Ten Group holds monthly meetings of the Safety and Hygiene Committee. Committee members are selected from both management and labor to investigate and deliberate the prevention of labor related accidents and illnesses, as well as health enhancement. Each work site undertakes safety and hygiene/health support efforts handed down by the Safety and Hygiene Committee, designed based on their characteristics.

Employment Occupational Safety Support System

Supporting Work from All Angles Carrying Out Education/Training Aimed Sometimes, an employee has a difficult time coping with both at Eliminating Labor Accidents job and personal matters, such as childbirth, child care and nursing Newly hired and promoted employees are given safety hygiene care. Our experiences have led us to introduce a system that education, compatible with their class and work environment. allows employees to take temporary leave from work, and to later Disaster prevention training is regularly implemented to ensure return to continue their work without difficulty or penalty. employees’ security. Also, each workplace performs an Helping wives prior to and after childbirth is only one of the valid Autonomous Workplace Safety Activities to make employees more reasons for taking leave. This system is also a refreshing, positive aware of potential dangers and safety awareness, all an attempt to action to correct differential treatment of genders in the office, and eliminate labor accidents. also introduces an internship system for students and people between careers. Autonomous Workplace Safety Activities The entire corporation is divided into 8 fields. Each field identifies their own specific problems and how to resolve them. Promoting Positive Action Each field conducts programmed safety activities compatible with each workplace. We started to work on Positive Action in 2001, promoting the Establishment of “close call reports” (at any time) and “emphasized months creation of a work place where both women and men can equally for close call reports” (4 times a year). demonstrate their abilities and work in a spirited manner. KY meeting with photographs at workplaces (every other month) Part of this program included expanding our childcare support Safety surveillance and improvement activities conducted by people from system. “Short work hours” are available to employees whose other fields for references from those with different viewpoints. children have not yet finished the third grade of elementary school (Japanese law mandates only up to age 3). “Child Nursing Leave” is available for employees whose children have not yet finished elementary school (Japanese law, up to entering elementary school). The rate of female employees returning from maternity Health Promotion leave is 100%.

Projects That Further Accelerate Positive Action Medical Checkups for Different Purpose and Health Guidance Another part of Positive Action was the “Good Company Project from the Viewpoint of Women”, inaugurated in April 2005. Its In compliance with Japanese law, regular medical checkups are membership consists of 19 female employees from a number of held once a year. In addition, lifestyle-related disease checks are offices with various backgrounds in work area and experience, age held for employees who turn 35 and are older than 40 years old, for and family structure. Using the concept of “a workplace comfortable early detection of chronic ailments. A number of other health for women to work in is a workplace comfortable for men, too,” they management related activities are conducted for various purposes, suggest measures and activities the company can do to improve such as checkups for employees going overseas, returning from the atmosphere. Activities suggested by the committee are overseas, those visiting Japan while spending long tours in introduced for 1 year with the cooperation of 2 invited advisors from overseas countries, employees working long hours and other outside of the company. specific checkups. Company physicians and health advisors explain the checkup results to each individual and dispense both physical and mental health advice.

Health Counseling for the Mind and Body Regular health consultations are offered to employees. When mental health care is required, a company physician or clinical psychologist gives counseling in an attempt to resolve the problem. EconomicPerformance AVN (AudioVisualNavigation)ECLIPSE“AVN8805HD” performance cleanengines Supporting theattainmentofhigh- (supporting safedriving) Millimeter-wave radar Engine controllingECU of ITS and MobileCommunications Production andSales Production andSales Automotive Devices Production andSales Society andthePlanet,ContinuestoTakeSteps Fujitsu TenConsiderstheFutureofHumanity, The JoyofAutomobiles,thePleasureSound,ExpandingSafetyandSecurity… Business Activities Economic Performance Development/ Development/ of Equipment Infotainment of Electronic Development/ (Intelligent TransportSystem) System Devices “promoting commercialvehicleefficiency”. “support forsafedriving,”“upgradednavigationsystems” and environment. FujitsuTenworksin3ofthesefields.They are, congestion andreducingtrafficaccidents,yetmaintaininga clean convenience andamenityofautomobileusers,whilesolving traffic 9 differentfieldspromotethedevelopmentofITStoimprove the the automobileindustry. will berequiredinthefutureandcontributetodevelopmentof “security,” wearedevelopingtheelectronicautomotivedevicesthat Keeping inmindthekeywords,“environment,”“safety”and to expandthejoyofdriving. Navigation) thatincludeaudiovisualnavigation,andcarspeakers entertainment andinformationtechnology,AVNs(AudioVisual We developautomotiveaudioequipmentthatcombines Air bagactuator navigation system) system (highly-developed In-car imageProcessing Air bagECU CDs andCD-R/RWs. Changer,” whichcansimultaneouslystore4piecesofDVDs, a largeoperationbutton.Thismodelalsofeatures“Multi- snugly into2DINspace,andhasbotha7.0WVGAmonitor and shutswiththeoperationbutton.TheAVNmodelfits HDD. Thismodelisprovidedwithan“ActiveWing”thatopens This istheflagshipmodelofECLIPSE,equippedwitha30GB System(VSS) Vehicle Security central dispatchingstation Computer equipmentof vehicles) efficiency forcommercial system fortaxis(improving CTI automaticcarallocation In-car equipment Economic Performance Financial Standing

We Manufacture Beloved Products At the Same Time, We Maintain a Healthy and Transparent Corporate Management

Fujitsu Ten Group’s Business Outline for Fiscal Year 2004 In fiscal year 2004, the Japanese economy started to recover in general with improved employment conditions that led to a mild increase in individual consumption. In overseas countries, a general recovery could be seen with the expansion of the American economy. The automobile industry, a deep concern of ours, also showed general growth due to the overall sales of general passenger and light vehicles in Japan as Car Speaker ECLIPSE well as increased general sales in the North American and European markets. Sound Monitor “SGX-TD5” With that condition in mind, Fujitsu Ten Group tried to develop new technologies and products to continue attracting customers, improve quality and fulfill/enhance our service system. As a result, we set a new sales record of 234.6 billion yen (12.4% year-on-year growth) and an ordinary profit of 10.59 billion yen (33.4% year- on-year growth) in consolidated profit during in this term. We will push forward with improvements, based on the 10 year “VISION 2012”* program enacted in 2002, and manufacture products beloved by our customers while working to maintain our healthy and transparent corporate management.

* Please see pages 4 - 6 regarding “VISION 2012”.

Sales Volume Change Ordinary Profit Change (in billions of yen) (in billions of yen)

2,400 Fujitsu Ten Limited results 2,346 120 Fujitsu Ten Limited results Consolidated results Consolidated results 106 2,200 2,087 100 79 2,085 80 74 2,000 1,889 68 1,800 1,746 1,870 60 54 System for Development 1,587 42 42 1,600 1,665 40 34 “CRAMAS” 1,515 17 20 1,400 20 Electronic device assessment simula- 1,418 tion system 0 0 00 01 02 03 2004 00 01 02 03 2004 Fiscal Year Fiscal Year Operating Profit Change Net Profit Change (in billions of yen) (in billions of yen)

120 Fujitsu Ten Limited results 113 120 Fujitsu Ten Limited results Consolidated results 102 Consolidated results 100 93 100

80 74 80 74 67 70 57 59 60 60 60 51 45 42 Development/ 40 30 40 24 25 26 Production/ 20 20 16 14 12 Sales of Speaker 0 0 00 01 02 03 2004 00 01 02 03 2004 Systems for Home Use Fiscal Year Fiscal Year Total Assets Change Change in Number ECLIPSE TD Series (in billions of yen) of Employees 1,400 Fujitsu Ten Limited results 12,000 Fujitsu Ten Limited results 1,257 Attaining clear Consolidated results Consolidated results 10,096 sound expan- 1,200 1,084 10,000 1,020 sion using the 7,741 8,048 1,000 933 958 1,082 8,000 Time Domain 6,693 952 6,281 Theory 800 889 6,000 808 830 600 4,000 2,676 2,766 2,800 2,851 2,966 400 2,000

0 0 00 01 02 03 2004 00 01 02 03 2004 Fiscal Year Fiscal Year EnvironmentalPerformance the provisionofgreenproducts contribute totheenvironment and Development oftechnologies that sion factories Realization ofzerowasteemis- ate citizen. our responsibilitiesasacorpor- green 21stcenturyandmeeting ing tothedevelopmentofa management, wearecontribut- our promotionofenvironmental information technology.With electronics, entertainment,and the industriesofautomotive products andservicesrelatedto and ourbusinessactivities, tween theglobalenvironment of thecloseconnectionsbe- The FujitsuTenGroupisaware Fundamental Principles green products Development ofessential technologyfor Promotion ofecologicaldesign tal assessment Implementation ofproductenvironmen- chemical substances use ofandenvironmentalriskfrom Promotion ofmeasurestoreducethe resource recyclingmeasures Promotion ofresourceconservationand bal warming Promotion ofmeasurestopreventglo- Environmental Performance Environmental Policy Concept Environmental Effort Charter Global Environment Fujitsu TenGroup Green Factories Green Products (Production) Factories Global EnvironmentalProtection Green” andpracticeitineveryareaofourbusiness. Charter, we’veadoptedaslogan,“GreenLife21-MakingEverything the conceptshownofFujitsuTenGroupGlobalEnvironment Making EverythingGreen century throughabundantgreenery. development ofanautomobilesocietyandthepublicin21st committed toglobalmovementofoureffortscontributethe of ouruniqueautomobileelectronicstechnologiesandare Global EnvironmentCharter”,enactedinMarchof2003. in November1992)anditssuccessor,the“FujitsuTenGroup we reviewedthe“FujitsuTenGlobalEnvironmentCharter”(enacted 3. 2. 1. While cherishingharmonywithnature,wewillmakegooduse Based onimplementationofthe“FujitsuTenCorporateVision,” To ensurethatallmembersofourgroupunderstandandpractice Global Environmental udmna oiisActionDirectives Fundamental Policies tion withsociety Coordination andcollabora- Thoroughness ofbasics Comprehensive measures (Development and GREEN LIFE21 Environmental Management Protection Products Design) of information management andpublicationrelease Creation ofafoundationforenvironmental production both upstreamanddownstreamof Consideration oftheenvironment Green SourcingandLogistics environmentally friendlymanner) Green logistics(ofproductsinan friendly) materials thatareenvironmentally Green procurement(ofpartsand Create greenpartnerships Environmental Management (Procurement andLogistics) Upstream andDownstream 4. 3. 2. 1. tial environmentaleducation entire staffthroughsubstan- Raise theawarenessofour and greenlogistics Promote greenprocurement suppliers with relatedcompaniesand by strengtheningcooperation tal technologytoourproducts Apply thelatestenvironmen- pact minimize environmentalim- protection effortsthatseekto Promote siteenvironmental Environmental Performance Environmental Management

Promotional organization In 1992, we established a Global Environment Committee. They have since created the Site Environment Subcommittee that’s in charge of environmental preservation at each base (office) and the Green Products Subcommittee that’s in charge of environmental considerations regarding products. Management Committee Officer in charge : Koichiro Fukushima

Environmental Audit Team Environmental Protection Department

Management Planning Group Purchasing Group

Legal affairs, public relations, education, Green procurement contributions to society Global Quality Assurance Group Environment Research & Development Group Committee Prevention of issues related to quality Operation of product environmental information system, infrastructure preparation Marketing & Sales Group Production Group

Investigation and notification of customer requests Reduction of packaging, increasing efficiency of Service Section: reuse of parts logistics, development of production technology

Site Environment Subcommittee Green Products Subcommittee

Reduction of CO2, reduction of waste materials, reduction of chemical substance emissions Product environmental assessment, green product development Fujitsu Ten FTCA. (USA) FTdM. (Mexico) FTTL. (Thailand) Tianjin Fujitsu Ten Business Division Head Office Plant Tochigi Fujitsu Ten Production Division Nakatsugawa Plant FTCP. (Philippines) Development Division Electronics Ltd. (China) Electronics Co., Ltd. (China)

In addition, we have established cooperation committees for Task Green Products Development Promotion Committee cooperative activities among facilities in Japan and facilities in other Promotion countries, and separate promotion organizations for each kind of Committees promotion effort related to product environmental measures. Product Environmental Assessment Promotion Committee

Facility Japan Group Environmental Cooperation Committee Lead Elimination Project Cooperation Committees Foreign Group Environmental Cooperation Committee Hexavalent Chromium Elimination Promotion Committee

Environmental Management System (EMS) Environmental Management System Fujitsu Ten Group developed its environmental management Fundamental Principles and Policies system in relation to ISO 14001. We promote environmental Fujitsu Ten Group Global Environment Charter management by rotating our PDCA cycle from planning to implementation, evaluation and improvement.

Additionally, to be sure the entire group steadily follows the Reevaluation at the management level Plans and goals Environmental Action Plan every fiscal year, an environmental Management meetings Fujitsu Ten Group Global Environment Committee Environmental Action Plan policy and an environmental management program for the entire group are designed. We promote action plan activities reflecting in the management program at each base and each department. Inspection and Improvement Implementation and application Principle inspection and Environmental management internal audit system system Environmental Performance Environmental Management

Status of ISO 14001 Certification Fujitsu Ten Group is seeking to acquire ISO 14001 certification progress toward attaining certification in December 2005. Fujitsu for all of our production bases. We have already gained Group acquired joint certification of ISO 14001 for its domestic certification for 3 bases in Japan and 6 bases in overseas. Fujitsu business offices in Japan March 2005 and part of the Fujitsu Ten Ten Electronics Ltd. (China), established in 2004, is making steady Head Office Plant is included in the scope of this joint certification.

Enterprise Date of Certification Evaluating Organization Authorizing Organization Fujitsu Ten Head Office Plant 24 June 1997 JACO JAB,UKAS Japan Fujitsu Ten Nakatsugawa Plant 26 August 1997 JACO JAB,UKAS Tochigi Fujitsu Ten 27 October 1997 JACO JAB,UKAS FTCP. (Philippines) 21 October 1998 TÜV Rheinland DAR FTCA. (USA) 17 June 1999 LRQA ANSI,RAB Tianjin Fujitsu Ten Electronics Co., Ltd. (China) 15 December 1999 CCEMS ZHB,UKAS Abroad FTdM. (Mexico) 2 June 2000 LRQA RAB,ANSI FTEG. (Germany)* 26 May 2003 TÜV Rheinland DAR FTTL. (Thailand) 22 October 2003 UNITED UKAS Fujitsu Ten Electronics Ltd. (China) Expected December 2005 To be determined To be determined * Sales company

Environmental Audit We implement internal audits based on the Environmental Number of auditors in groups in Japan Management System. Based on the results, we check on the Chief Auditors 10 conditions of environmental preservation action and add Auditors 39 evaluations to management activities for the previous year in order to continuously upgrade our environmental management system. Number of auditors in overseas groups To make audit checking more effective, Fujitsu Ten Group’s Chief Auditors 6 environmental audit team is separate from the EMS, and a chief Auditors 37 auditor is appointed from a pool of people who are not directly related to the EMS. [Results of domestic environmental audit in fiscal year 2004] Number of issues noted and condition of corrections (Japan) Number of issues noted 75 Number of corrected cases 75

Number of issues noted and condition of corrections (Abroad) Number of issues noted 92

Scene of an external audit Number of corrected cases 92

Environmental Education We are implementing environmental education to each After the completion of introductory education for environmental employee class by adding Environmental Management to our preservation promoters and environmental management auditors, company education program. In particular, special courses students take a test to check their comprehension of the issue. (introductory and refresher courses) are held for staff members with Only those who attain certain levels are appointed in order to direct responsibility for environmental management work, such as maintain competence level. environmental management representatives, environmental Additionally, at overseas ISO 14001 certified bases, we require preservation promoters, environmental management auditors and environmental education to employees who deal directly with environmental related workers to keep them abreast of required environmental management work and new employees. knowledge and techniques.

Training for Emergency Measures Since the Great Hanshin/Awaji Earthquake, we have conducted Training Conditions (simulated response training) training drills for employees. These drills practice their response to Plant Times Implemented Cumulative participants a simulated chemical substance leakage accident near storage Head Office Plant 1 13 facilities. This compliments disaster prevention training held in Nakatsugawa Plant 4 118 January for all employees. At workplaces where chemical Tochigi Fujitsu Ten 5 21 substances are used, periodic training is conducted to cope with Overseas bases 28 335 spills during work and check on equipment reserved for such *Excluding disaster prevention training held for the entire corporation. measures. Environmental Performance

Fujitsu Ten conducts its procurement, complying with law and “prohibition of service and entertainment beyond the level of social norms, under 3 basic policies: “open-mindedness,” common sense,” “prohibition of demanding contributions to “fairness” and “indiscriminate between Japan and overseas suppliers,” and “protection of confidential information”. entities”. At the same time, procurement proceeds taking resource Fujitsu Ten fulfills a social responsibility in its role in the protection and global environment preservation into consideration. supply chain, including green procurement, under these basic To carry out such an operation, we define ethical principles, policies and ethical principles, as well as the cooperation of our “clear and honest,” “prohibition of private interest with suppliers,” suppliers.

To promote Green Product Development, the most important issue in our environmental management, we’ve established Green Procurement Guidelines to express our thoughts and goals toward green Green Procurement procurement and requirements for environmental consideration concerning procured parts, raw and secondary materials. The guideline is distributed to our business acquaintances. In recent years, regulations on issues regarding “no use of hazardous materials” and “recycling waste” have been rapidly established. Cooperation from our business contacts is essential for us to meet our social responsibilities as a corporation. Additionally, an increasing number of requests have been coming from our customers to disclose information about our products’ environmental impact. To quickly and sincerely respond to these requests, it is important to conduct efficient investigation about the environmental information of each product and product material, establish the compilation system and improve the infrastructure. From that standpoint, we issued a revised 3rd edition of the Green Procurement Guidelines in May 2005, and conducted an explanatory meeting with our business acquaintances to ask for their cooperation in submitting a “Declaration of non-inclusion of specified hazardous substances” and “Survey sheet of environmental information of parts and materials”. From now on, we will continue to promote green procurement with a consciousness toward the supply chain as a way of conducting environmental assessment on product materials and maintaining a thorough environmental information management, based on the revised green procurement guidelines.

Green Procurement Rate [Requests for our Suppliers] In the fiscal year 2004, green procurement was 99.8%, an 1.Establishment of an Environmental Management System increase of 0.1% from the previous year. á Acquisition of an EMS certificate through an accreditation stan- dard of an outside public organization, or an EMS certification [Definition of Green Procurement] from Fujitsu Group The procurement of green parts and materials taking á Maintenance of a designated toxic substance management sys- environmental protection into consideration, including energy tem conservation, resource conservation and recycling ease. 2.Environmental response of products á Management and reporting of environmental information on the [Definition of Green Parts and Materials] delivered parts and materials á Parts, raw materials and secondary materials that have been á Observance of designated toxic substance control procured from businesses that have acquired EMS certification á Submission of an observance declaration regarding designated under the accreditation standards of outside public organizations, toxic substances such as ISO 14001, or that have made environmental protection á Observance of obligatory display content efforts in conformance with these standards. á Consideration given to energy conservation, resource conserva- á Parts, raw materials and secondary materials that do not contain tion and recycling substances prohibited for use by our company. 3.Environmental response in the production process á No use of prohibited materials in the production process á Effort toward banning materials required for its use

Environmental Contribution Awards Introducing the Fluorescent We established the Environmental Contribution Awards to X-Ray Spectroscopic Analyzer suppliers that made excellent efforts to cooperate with our goals of To reinforce the surveillance system regarding the condition of developing green products and reducing the environmental impact toxic substance content in product parts, we installed a fluorescent of factories. The fiscal 2004 award went to: X-ray spectroscopic analyzer at our Head Office Plant. We are planning to install them in all production hubs of Fujitsu Ten Group. Fiscal 2004 Award Results 1 Company for their efforts developing hexavalent chromium-free screws Environmental Performance Goals/Achievements/Evaluation

Since we established the Fujitsu Ten Environmental Action To achieve these goals, we are working to reinforce Plan in 1993 as a concrete benchmark to implement the cooperation with the environmental management group as decisions of the Fujitsu Ten Group Global Environment well as constructing a system that accurately captures the Charter, we have been, step by step, expanding the number environmental impact of each process and product itself, from and scale of issues to address. design to product disposal, and to manage this process as In the 4th Fujitsu Ten Group Environmental Action Plan, well. which is scheduled for completion at the end of fiscal year The results of 2004 are shown as below. Some of our 2005, the scope is to be expanded throughout Fujitsu Ten goals have not been met yet. Group, including our overseas production bases.

Ratings = : Goal exceeded : Goal met appropriately 4th Environmental Action Plan Goals and Results : Goal not met : Goal not met to a large extent

Main Theme of Fiscal Year 2004 Fiscal Year 2004 Reference Item Action Plan Final Target Ratings Action Goals Results page

Ban the use of lead solder in all Establish technologies Established a flow meth- products produced after July for all manufacturing od and low melting point 27-28 2007 methods soldering method

Finish conversion to parts Completely ban the use of parts that have applicable Switch over in progress containing hexavalent chromium alternative technologies (not completed) by the end of fiscal 2005 by the end of December

Green Expansion of the 2004 Products list of substances +Green prohibited from use Global Sourcing in our products Completely ban the use of parts Completely banned lead Complete investigation of containing lead and cadmium by in electric bulbs and pro- 27 subject parts the end of fiscal 2005* tective paints

Begin marketing products with Prospectively decide which Prospectively decide which mercury-free backlight by the alternative technologies to alternative technologies to end of fiscal 2007 adopt adopt

* Period for complete ban except those for which a prohibition period has not been determined by European ELV directives European ELV (End of Life Vehicles) Directives: EU regulation regarding the environmental concerns of used vehicles. It defines prohibition of the use of designated toxic substances (lead, hexavalent chromium, cadmium, mercury) and securing a certain vehicular recycling rate. Environmental Performance

Main Theme of Fiscal Year 2004 Fiscal Year 2004 Reference Item Action Plan Final Target Ratings Action Goals Results page

Reduce carbon dioxide emis- sions (per production output) to 10% or more 12% 15% less than fiscal 2002 levels by the end of fiscal 2005 Promote actions against global 30 warming Reduce carbon dioxide emis- sions (per production output) to 16% or more 10% 15% less than fiscal 1999 levels by the end of fiscal 2005

Reduce the amount of waste (per production output) to 10% 5% or more -0.5% less than fiscal 2002 levels by the end of fiscal 2005 Green Factories

+Green Achieve a waste recycling rate 89% or more 96% Logistics of 90% by the end of fiscal 2005

Promote actions for +Green resource saving 31 Sourcing and recycling Reduce the amount of waste (per production output) to 10% 9% or more 8% less than fiscal 2002 levels by the end of fiscal 2005 Japan Global Japan Global

Maintain a 100% waste recy- 100% 100% cling rate

Promote actions to Reduce the amount of PRTR (Pollutant Release and Transfer reduce the use of Register) substances used (per chemical substan- 24% or more 25% 32 production output) to 30% less Global ces and environ- than fiscal 2002 levels by the mental risks end of fiscal 2005.

In addition to Green Products (a specific environmental issue corporations, local communities and other groups by focusing on for the corporation) and Green Factories (a common environmental management subject to social issues, such as corporate ethics, issue for local and global communities), we intend to reinforce and regional vitalization, social contribution and cultural activities. expand activities that should lead to new partnerships with other Environmental Performance Goals/Achievements/Evaluation

Since March 2000, we have been conducting Environmental Accounting in order to quantitatively identify Environmental and evaluate both the costs and the economic/physical effects related to environmental preservation, and Accounting announcing those results as well. In fiscal 2004, we collected data on environmental costs and effects from 20 offices of the Fujitsu Ten Group, including overseas bases. In addition to the substantial effect determined in the Environmental Accounting Guidelines from the Ministry for the Environment, Fujitsu Ten Group determined our own calculation standard for presumed influence. In the future, we will proceed to develop technologies and know-how that enable us to reflect the evaluation results to environmental management at each base of Fujitsu Ten Group.

How to Look at Environmental Costs, Economic Effects Classifications and Counting How to look at environmental costs How to look at the economic effects Environmental risk Environmental Losses reduction Substantial Effects: An effect that can be directly displayed in monetary terms as a result of Maintained Costs environmental preservation activities. Reduce environmental Cost reduction through energy saving activities and earnings from selling off valuable resources. Investment amounts attributed proportionately costs overall Environmental Investments according to amount relevant to the environment Presumed Effects: Environmental Impacts An effect that cannot be directly measured in monetary value but valued in such manner by applying certain criteria. New equipment investment is the sum of an annual amount based on 5-year fixed amortization and Contribution to environmental preservation activities to earn profit, avoiding other costs that occurred during the applicable fiscal year. future environmental risks, etc.

[Results for fiscal 2004] Fujitsu Ten Alone: Subsidiaries (Japan): Environmental Costs Environmental cost increased in the business area by 5 million It increased 142 million yen from the previous fiscal year, yen due to the increase in manpower, so it came out to 35 million reaching 551 million yen. yen, a 3 million yen increase from the last fiscal year. Regarding In fiscal 2004, Fujitsu Ten promoted improvement of the environmental effects, the advantage of energy savings increased system, including an increase in manpower, to respond to to 9 million yen as a result of line integration, meaning 3 million yen regulations regarding “no use of toxic substances” and “waste more than last fiscal year. recycling” as well as customer requests to disclose environmental impact information about products. As a result, costs for research and development increased 82 Subsidiaries (Abroad): million yen, while management and action costs increased 46 3 companies, including logistical bases, were added to the million yen. Additionally, along with reinforcement of supply chain consolidation scale in fiscal 2004. management, we decided to add up the manpower concerned with Environmental costs were about the same amount as the green procurement, meaning the cost for upstream and previous fiscal year, 105 million yen. Regarding the environmental downstream production increased 20 million yen. effect, energy savings at Tianjin Fujitsu Ten Electronics Co., Ltd. and FTCP increased 4 million yen compared to the last fiscal year. Environmental Effects Additionally, the presumed effect of environmental education was It was the same as last fiscal year, 150 million yen. added to this total, meaning a further increase of 7 million yen from With the increase of green product compatible models, research the previous fiscal year, making the total 31 million yen. and development increased by approximately 40 million yen. However, this was offset by a presumed reduction effect, including no need for discarding or collection facilities, recycling fixtures, and a decrease in the number of articles published in newspapers, meaning the cost was similar to the previous fiscal year.

Breakdown of Environmental Costs (Unit: million yen) Breakdown of Environmental Effects (Economical Effects) (Unit: million yen) Related Companies Related Companies Environmental Fujitsu Ten Environmental Fujitsu Ten Group Total Group Total Costs Limited Effects Limited Japan Abroad Japan Abroad Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 Environmental Substantial Effects Losses 0 0 0 0 0 0 0 0 76 53 5 9 24 28 105 90 Maintenance Presumed Effects Costs 375 536 32 36 93 94 500 666 74 97 1 0 0 3 75 100 Environmental Total Investments 34 15 0 0 11 11 45 26 150 150 6 9 24 31 180 190

Total 409 551 32 36 104 105 545 692 *Scale of consolidation: Fiscal 2003=17 companies Fiscal 2004=20 companies

*Scale of consolidation: Fiscal 2003=17 companies Fiscal 2004=20 companies Environmental Performance

Material Volume Effects and Environmental Impact Improvement Indicators We grasp environmental performance as an absolute value, output/environmental cost) to assess the efficiency of preservation including environmental impact that results from our business activities from the management viewpoint for continuous activities as well as the physical effects of preservation activities. improvement of environmental management. At the same time, we’ve established an index to improve Fujitsu Ten uses “Emission Level of CO2 Caused by Energy environmental impact connected with an index of the relationship Use” as its index for environmental impact. between environmental impact and management (production

Fiscal 2004 Environmental Accounting (Unit: million yen) Fujitsu Ten Related Companies Group Category Details Limited Japan Abroad Total Pollution Costs related to the prevention of noise and atmosphere pollution, personnel 6 0 18 24 prevention costs expenses for operation of environmental facilities Global environment Energy conservation measure expenses, costs related to prevention of global Business 22 5 14 41 protection costs warming, etc. area Resource costs Waste recycling expenses, costs related to efficient use of resources, etc. 67 19 22 108 recycling costs Sewage Public sewer expenses 11 2 1 14 expenses

Upstream and Costs related to reduction of impacts caused by upstream and downstream 25 0 0 25 downstream costs activities related to production and services (product recycling) Environmental protection costs related to management activities Management activity costs 170 10 50 230 (certification maintenance costs, etc.)

Research and Environmental protection costs related to research and development activities 250 0 0 250 development costs (green product and environmental technology design and development) Environmental protection costs related to efforts for society

Environmental Costs Social activity costs 0 0 0 0 (vegetation planting costs, etc.)

Environmental damage Costs of responding to environmental damages 0 0 0 0 costs (soil and groundwater pollution restoration costs, compensation, etc.)

Environmental business Costs related to environmental business activities 0 0 0 0 costs

Environmental Costs Total 551 36 105 692

Pollution Environmental protection activity contribution as a part of the added value gained 9 0 0 9 prevention effects through production activities Business Global environment area Cost reduction through decreased use of electricity, oil, gas and other resources 30 6 23 59 preservation effects effects Resource Cost reduction through decreased waste amounts, efficient use, etc. 12 3 5 20 recycling effects Upstream and Value of sale of reusable products and parts, and savings from parts reuse 12 0 0 12 downstream effects

Management Effects of employee internal education, value of environmental publicity activities 14 0 3 17 activity effects that raise the company image

Research and Value of green products and environmentally friendly product sales and license 73 0 0 73 Other development effects revenues

Environmental Effects effects Environmental Value of resident compensation payments avoided through groundwater pollution 0 0 0 0 damage effects countermeasures, etc.

Environmental Value of environmental business sales contributions 0 0 0 0 business effects

Economic Effects Total 150 9 31 190

Environmental impact reduction amount -301 -33 -288 -622 Material Effects (fiscal 2003 impact amount - fiscal 2004 impact amount) CO2 Emissions (unit: t-c)

Environmental Efficiency (production output/amount of CO2 emission) (unit: 100 million yen/t-c) Related Companies Fiscal Year Fujitsu Ten Limited Group Total Japan Abroad 2004 0.267 0.555 0.248 0.279 2003 0.246 0.569 0.258 0.273 Environmental Performance Business Activities and Their Main Environmental Aspects

The products of Fujitsu Ten Group have an impact on the environment in every stage of production, from development/design to collection/recycling. Therefore, the environmental preservation activities of Fujitsu Ten Group take the entire lifecycle of our products into account. We are aware of all influences our products have on the environment until their roles end, so we plan and promote an entire product lifecycle after quantitative assessment on each aspect on the environment, such as “investing materials and natural resources” and “emitting wastes, gas and water”.

Development and Procurement of Planning Parts and Materials

Flow of Business Common to All Activities and Products Business Locations

(1) Consumption of energy Main resources environmental (2) Consumption of water (1) Consumption of fuel by (1) Consumption of fuel by aspect resources test vehicles transport vehicles (input) (3) Consumption of forest resources

(2) Emission of substances that impact the (4) Emission of substances environment during Main with environmental manufacture environmental impacts (2) Gas emission from test (3) Gas emissions from aspect (5) Wastewater from non- vehicles transport vehicles (4) Waste from containers (output) industrial uses and packaging of (6) Waste delivered parts and materials

(3) Use of natural resources, including minerals, oil and Main forest resources environmental (4) Consumption of fuel at aspect time of product use Factors that contribute to environmental impacts (product) (5) Presence of harmful substances in product parts

Measures to prevent global warming (1) (4) Development of simulators (1) (2) Efforts to reduce paper Promotion of green use (3) procurement Development of green Environmental products (3) (4) (5) protection efforts Management of reduction Participation in the of chemical substances supplier cooperation Development of products and handling (4) subcommittee of the Tenei that contribute to Kai (1) (2) (3) (4) environmental protection Reduction of waste and appropriate disposal (6) Environmental Performance

Product Logistics, Product Disposal Manufacturing Product Use Sales, and Aftercare Services (Collection and Recycling)

(1) Consumption of fuel by vehicles used by logistics (1) Electric power and sales consumption by our (2) Consumption of paper in manufacturing plants the manufacture of catalogs and product containers and packaging

(2) Use and emission of substances that impact (3) Gas emissions from the environment during vehicles used by logistics manufacture (3) Unnecessary materials and sales (scrap materials and (4) Used catalogs and faulty products) product containers and (4) Used containers and packaging of supplied packaging parts and materials

(5) Presence of harmful substances in the (1) Automobile fuel use (1) Used products secondary materials of (indirect impact) (shredder residue) products

Promotion of green logistics (1) (3) Measures to prevent global warming(1) Introduction of the use of Design for product energy conservation (Product Use (1)) eco-cars (1) (3) Reduction of the use of substances with Reduction of the environmental pollution risks of used products Reduction of product environmental impact (Product Disposal (1)) containers and packaging (2) (5) Promoting total abolition of toxic substances in products (2)

Reuse of containers and Recycling and reuse of used products (Product Disposal (1)) Environmental packaging from supplied considerations in making parts and materials (4) catalogs and product manuals (2) Environmental Performance Green Products

Fujitsu Ten established a system to environmentally assess each product at the design stage and manufacture only those that attain a certain standard. We promote these products, and those that prominently improve, as “green products”. Areas of particular concern include energy savings, resource savings and the elimination of toxic substances.

The relevance ratio to become a “green product” for newly designed products in 2004 was 50% (818 part numbers/1630 part numbers) Mark symbolizing “Green Product”

Efforts Regarding ELV Directives, which took effect in Europe in July of 2003, ban lead, cadmium, hexavalent chromium and mercury from being contained in parts and products for applications, with limited exceptions. Our European ELV corporation totally abolished lead and cadmium for certain determined applications in July of 2003. Directives After 2004, we are planning to ban usage of these toxic substances more than a year ahead of the period proscribed in ELV.

Periods for Restriction of Substances ELV restriction period Switch achieved at Fujitsu Ten Group and the Fujitsu Ten Group’s Elimination Plan Goal of switch at Fujitsu Ten Group Parts Containing Substances Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

January ~ Light-bulb glass July

Aluminum for machine processing July 2008 ~ Lead (lead 1%) End of December

Restriction period not yet determined Solder July ~

July ~ Cadmium Thick film paste End of August

Hexavalent July ~ Chromatic treatment chromium End of December

Restriction period not yet determined Mercury Liquid crystal backlights Start marketing

Efforts to lower environmental impact of our products

Shift to hexavalent Shift to lead-free soldering chromium-free 2005: Designing a new model Chassis, screws Switch completion in 2007: Switch completed for all December 2005 models á Chrome-free steel plate á Trivalent chromium

Frames

Mercury-free backlighting Start application in 2007 Deck Print-circuit board Assy á Xenon system Gear (resin parts) Speakers, á LED system cones, adhesives

Lowering VOC (volatile organic compound) Application begins in 2006 LCD á Coating materials compliant to VOC regulation (toluene and xylene free) á Lowered VOC type POM Environmental Performance

Lead Free Soldering Corresponding to hexavalent chromium-free We intend to have an entirely lead free operation after July Hexavalent chromium is found in the galvanized parts of steel 2007. Flow and low melting point soldering methods were plate, such as brackets and chassis as well as screws. established in fiscal 2004, allowing the switching to lead free We have been using alternative parts that passed quality corresponding products to be implemented. In addition to main checking for new products. Some alternate technologies being circuit boards and display boards until the previous year, we began developed are to replace old types by the end of December 2005, applying lead free soldering to circuit boards for decks and tuners. which is when the total ban of hexavalent chromium is to begin.

Circuit board for deck Circuit board for tuner Applied hexavalent chromium-free parts

Product We’ve developed our product environment management system in conjunction with a PDM System*, and designers use it as a design development support tool for green products. We’d like to improve this Environmental system in the future, allowing us to offer quantitative product environmental information to automobile Information System manufacturers.

*PDM (Product Data Management) System: A system to manage technical data regarding products, such as drawings, parts lists and specifications.

Outline of the Product Environment Assessment System

Green product Parts Suppliers development Offering beneficial information (requests from customers, regulatory Offering parts’ material data movement, know-how, etc.)

Product planning and design PDM System

Product Environmental Assessment Checklist Information System (Database) Assessment implementation management Procurement Department Collecting the results of Product’s assessment/Feedback environmental data

Product Environmental Assessment Product Assessment Substance name (incomplete/ Presence Quantity name complete) Approved Certified Green Unit IMDS* Product Part Incomplete Part Complete Yes Cadmium 2mg Part Complete No

Part Complete Yes Mercury 6mg Customers Registering customer requests and regulatory information. Reporting started Management through Offering products’ environmental impact August 2003 Mass production assessment results information to customers (responding to IMDS)

*IMDS (International Material Data System): A system developed by the German Association of the and EDS Germany, which discloses and registers all material information of each part used in automobiles. Environmental Performance Green Products

Miniaturizing 76GHz millimeter-wave radar Our millimeter-wave radar is applied in Adaptive Cruise Control, which maintains a safe distance from the vehicle ahead, as well as in our Collision Mitigation System, which predicts collisions and lowers collision damage through the use of an alarm and active breaking. In 2004, the model was miniaturized to a depth of 70mm (20% less than traditional types) thanks to newly Millimeter-wave radar developed highly integrated signal processing IC and component improvement. It also became much lighter 560g (22% less than traditional types). This development not only improved installation in vehicles, but contributed to resource savings as well. We will undertake further improvements and actions aimed at attracting more applications from automobile manufacturers.

Development of the TV/GPS Integrated Film Antenna (a world first) GPS antennas used to be a solid shape. We converted them into film form and integrated them with already manufactured TV antennas. This improvement realized better installation, reduced the influence given to visibility while driving and enhanced the interior aesthetics of vehicles, while reducing the volume to 1/10 of our conventional products, contributing to resource saving. It’s been applied to the all product models of ECLIPSE AVN (Audio Visual Navigation) that went on the market TV/GPS integrated after July 2004 in Japan, and will gradually be expanded. type film antenna

Volume of antennas without cable Conventional Type Integrated Type Mass (g) 25 3(-88%)

Controller for Hybrid Vehicles Reduction of Packaging Size Motor Corporation and Ltd. jointly We’ve minimized packaging materials for product shipment in an developed a fuel cell hybrid non-step motor coach, FCHV-BUS2. attempt to reduce the amount of general packaging materials, reduce Fujitsu Ten is in charge of developing and producing the hydrogen waste materials for our customers and decrease fuel consumption fuel tank shut valve controller for the FCHV-BUS2. together with CO2 emission by improving forwarding efficiency. Additionally, we received the contract to Example) Cardboard boxes for audio amplifiers develop an ECU that comprehensively We used to use larger cardboard boxes for replacement audio controls motor drive, electric power generation amplifiers for automobile manufacturers, due to the brackets placed with a fuel cell and discharge/charge of a on both sides. However, since the brackets were screwed onto the secondary cell from Toyota Motor Corporation. body, we discovered that if we removed them Development has been completed. and packed them in separate, we could FCHV-BUS2 exhausts neither NOx nor reduce the amount of cardboard used. This PM, so that it is particularly helpful in reducing Hydrogen fuel tank shut also reduced the box size for the amplifiers valve controller urban air pollution. and the amount of buffer materials. Minimized packaging materials

Received approval from the Ministry of Land, Infrastructure Before Improvement After Improvement September 2002 and Transportation. Began public road testing in October. Dimensions (mm) 580x332x157 377x205x176 August 2003 Began operation in as Tokyo Public . Capacity (cm3) 30,232 13,602(-55%) March 2005 Supported delivering visitors to Expo 2005 Aichi, Japan Weight (g) 891 554(-38%)

Lifecycle Assessment Efforts (LCA) From fiscal year 2003, we established guidelines Use of materials (ore, oil, etc.) to implement lifecycle assessment and used it for and energy (electricity, etc.) (6) Disposal and (1) Resource recycling some of our products. collection In our trial operation, we set the converted value (2) Materials of input energy into CO2 emission to be the manufacture environmental impact assessment standard, and (5) Product use reviewed it from the resource gathering stage to the product assembly stage. In the future, we’d like to proceed with efforts to implement LCA over entire Parts Product (3) Parts fabrication (4) Product assembly lifecycles, including use, waste and recycling of procurement delivery products, part of which includes creating the guidelines for LCA calculation after products are mounted on vehicles. We will actively use these Calculation of LCA value (CO2 emissions equivalent) : Lifecycle of a Fujitsu Ten Product for parts supplier and Fujitsu Ten LCA results to manufacture less environmentally : Scale of trials (1~4) burdensome products. Lifecycle of a Fujitsu Ten Product Environmental Performance Green Factory

Fujitsu Ten Group globally promotes “global warming countermeasures,” “waste reduction countermeasures” and “toxic substances reduction countermeasures” as part of our everyday approach based on the 4th Fujitsu Ten Group Environmental Action Plan.

To reduce emissions of CO2, which is the cause of global warming, we are conducting energy saving Global Warming activities through the introduction of energy saving facilities and radical electricity savings, as well as Countermeasures increasing efficiency in the areas of design, production, physical distribution and clerical work. After fiscal year 2005, we plan to expand our activities by introducing a photovoltaic power generation system, purchasing green power certificated and emission permit transactions for new CO2 emission control measures.

Goal in fiscal 2004 Fiscal 2004 achievements

Global To reduce CO2 emissions by 10% (per production out- Global Reduced 12% from fiscal 2002 (goal achieved) put) from fiscal 2002

Japan To reduce CO2 emission by 16% (per production output) Japan Reduced 10% from fiscal 1990 (goal not achieved yet) from fiscal 1990

Efforts for Energy Saving at Business Offices

To reduce emissions of CO2, most likely part of the cause of production, physical distribution and clerical work. The goals we global warming, we are undertaking efforts throughout the entire set for fiscal 2004 (CO2 emission per production output) were company. These efforts include electricity savings through reduced achieved globally, but not in Japan. air conditioning and lighting, elimination of operational waste by The major reason for not meeting our goal in Japan was factory introducing energy saving type facilities and abolishing/merging expansion to meet parallel operation through increased production lines. Moreover, we’re counting on increased efficiency in design, volume.

Global

Composition ratio of each type in fiscal 2004 Composition ratio of each base in fiscal 2004

Total Volume of LP Gas 0.5% Kerosene 0.1% Total Emissions Sales Office in Japan 1% Head Office Plant 29% Emission 8,080t-c Light Oil 0.1% Volume 8,080t-c Others 2% City Gas 5.0% Natural Gas 0.1% FTTL 3% FTCA 5% Nakatsugawa Plant 24% Tochigi Fujitsu Ten 7% Crude Oil 12.2% Tianjin Fujitsu Ten 12% Electricity 82.0% FTdM 8% FTCP 9%

Transition of Energy Use Transition of CO2 emission per production unit (Converted in Electric Power) and original unit (energy alone) Energy usage volume Production output (t-c) CO2 emission volume Primary unit (t-c/100 million yen) (MWh) 2,194 (100 million yen) 80,000 2,200 8,500 4.5 8,080 1,957 8,000 4.16 75,000 1,900 1,672 1,716 75,430 7,528 69,623 7,500 4.0 70,000 1,600 3.80 7,147 7,000 65,731 3.85 65,000 1,300 62,586 6,500 6,348 3.68 3.5 60,000 1,000 6,000 0 0 0 0 01 02 03 Fiscal 2004 01 02 03 Fiscal 2004 Environmental Performance Green Factory

Fujitsu Ten Group is working to reduce and recycle waste based on the theme called 3R (Reduce, Waste Reduction Reuse and Recycle) from the viewpoint of helping establish a resource recycling society. Every Measures production base of the Japanese Group achieved zero emissions by the end of January 2003. The goal is for foreign bases to achieve this by the end of fiscal 2007.

Definition of “zero emissions” at Fujitsu Ten Group: Totally eliminating the amount of non-effective waste, such as incinerated materials and landfill disposal, under the 3Rs - Reduce, Reuse and Recycle - to zero.

Goal in fiscal 2004 Achievements in fiscal 2004 Global To reduce waste emissions by more than 5% (per pro- Global An increase of 0.5% compared to fiscal 2002 (goal not duction output) from fiscal 2002. achieved) Rate of recycling waste materials to be higher than 89% Rate of waste recycling was 96% (goal achieved) Japan To reduce waste emissions by more than 9% (per pro- Japan Rate reduced 8% from fiscal 2002 (goal not yet ach- duction output) from fiscal 2002. ieved) Keeping the rate of recycling waste materials to be 100% Rate of waste recycling was 100% (goal achieved)

Regarding the reduction goals set for fiscal 2004, combined, both increased production is expected at both overseas and Japanese global and Japanese bases could not achieve their goals. This was bases, increased cooperation will be necessary from overseas because production volume at overseas bases increased, while production bases. Japanese bases continually received packaging waste (wooden Regarding the recycling rate, both global and Japanese goals were pallets and cardboard boxes, all of which is material recycling) from achieved. products shipped from overseas countries at logistic bases. As

Global

Transition of waste emission volume, rate of recycling and original unit

Fiscal 2002 Fiscal 2003 Fiscal 2004

Volume of recycled materials (t) 2,765 2,996 3,903

Volume of final disposal (t) 382 431 155

Recycling rate (%) 88 88 96

Emissions volume 3,147 3,427 4,058

Production output (100 million yen) 1,716 1,957 2,200

Production output per primary unit (t/100 million yen) 1.83 1.75 1.84

Composition Ratio of Different Categories in Fiscal 2004

Total emissions Others 6% volume 4,058t General waste from business activities 4%

Metal scrap 12% Waste paper 60% Plastic scrap 18%

Examples of wasted recycling materials (waste products and parts) Dismantled and Segregated Materials Recycling and usage methods

Iron scrap Recycled into iron

Non-iron metal scrap Recycled into each metal

Electric wire scrap Collecting and recycling copper

Waste Circuit board waste Collecting precious metals and recycling the rest into sub-base Products Dismantle/ Metals are sorted into each element, circuit boards are used for sub-bases after Segregation Metal type miscellaneous scrap Waste collection of precious metals Parts Iron/plastic combined materials Melting and recycling iron. Plastics are used for blast furnace fuel

LCD Glass parts are recycled. Plastics are used for supplement fuel

When a material is clarified, they are recycled into plastic. When not clear, they Waste plastic are used for supplement fuel. Environmental Performance

Regarding all chemical products used throughout our corporation, we systematized the existence of Toxic Material managed substances and the volume contained based on the Material Safety Data Sheet, and chemical Reduction Measures substance assessment to understand their adverse affects on the human body and environmental risks. By doing so, we can identify chemical products with high environmental risks and reduce their use. Currently, major materials targeted for reduced usage are lead, toluene and xylene, the object substances in PRTR (*1), and IPA (isopropyl alcohol), which belong to the object substance in VOC(*2), which we use a lot.

(*1) PRTR (Pollutant Release and Transfer Register) This system announces the amount of toxic substance emission levels released into the environment and the waste contained by our products that are transferred outside of our business entities. In Japan, PRTR regulation took effect in March of 2001. (*2) VOC (Volatile Organic Compounds) Organic compounds that evaporate at room temperature and diffuse into the air. Their influence on ecology is a concern, as they generate photochemical oxidants and destroy forests. Also, their toxicity, carcinogenic properties and environmental hormone content lead to concerns about their impact on ecological systems.

Goal in fiscal 2004 Achievement in fiscal 2004 Global To reduce the use of PRTR substances (per production Global Reduced by 25% compared to fiscal 2002 (goal ach- unit) by 24% from fiscal 2002. ieved)

Global

Achievement in fiscal 2004 (unit: kg) Substance Quantity Consumed Lead 32,319 Xylene 3,974 Toluene 1,692 Silver 56 Total 38,041

Volume of toxic substances used and primary unit Fiscal 2002 Fiscal 2003 Fiscal 2004 Lead (t) 27.0 28.0 32.3 Toluen/Xylene (t) 6.3 5.5 5.7 Primary unit (kg/100 million yen) 19.6 17.1 17.3

Achievement in fiscal 2004 IPA (isopropyl alcohol) 97.2t

Japan

Transition of the volume of toxic substances used and primary unit Transition of the volume of IPA (isopropyl alcohol) use

Lead Toluene/Xylene Primary unit (t) (kg/100 million yen) (t) 20 30 50 46 44 24 40 37 35 37 18 20 15 30 12 10 15 11 20 12 10 7710 10 10 10 6 6 6 0 0 0 00 01 02 03 Fiscal 2004 00 01 02 03 Fiscal 2004

Measures to Reduce the Use of Solder (Lead) Measures to Reduce the Use of We’ve promoted the replacement of conventional lead soldering Isoprophyl Alchohol (IPA) (content is approximately 36%) and developing lead free soldering Just as with soldering, we’ve reinforced our approach toward materials. In July 2002, we put lead free soldered products on the reducing IPA usage, such as in production line unification, market and ever since, the applied models have been expanded. reduction of multi-flow product movement, intermittent machine Additionally, to reduce the volume of soldering itself, we use cleaning and replacing machine cleaning with wiping at times of surface mounted technology for electronic parts. (Please see periodic inspections and maintenance. In the future, we will start to details in “Products with Lead Free Soldering” on page 28) take similar measures at disposal facilities (combustion/absorption).

[Efforts Beginning in Fiscal 2005] Toluene and Xylene Substitution Plan We are aiming for the total abolition of lead soldering on all To establish solvent technology to replace toluene (a circuit products manufactured after July 2007. Establishment of flow and board coating agent) and xylene (a circuit board coating thinner), reflow low melting soldering technology and the switching of parts we are working on product credibility assessment. (electrode plating) are underway. Data Collection Environmental Data of Subsidiaries

Manufacturing businesses

Amount of Company Fiscal Amount of energy use Rate of Amount of Amount of final Amount of Amount of name year CO2 emissions (electric power waste recycling waste emissions waste disposal paper purchases water use ( ) ( ) ( ) ( ) ( ) ( 3) t-c * equivalent/MWh) % t t t m

2003 402.8 4022.6 65 283 100 0.6 4,796 FTCA. 2004 391.3 3938.5 100 452 0.1 0.6 3,955

2003 603.9 6118.4 80 507 101 3.7 9,765 FTdM. 2004 650.3 6588.5 87 671 87 4.2 11,962

2003 758.5 7163.7 100 436 0 0.7 40,768 FTCP. 2004 764.2 7660 100 335 0 1.1 36,344

2003 837.3 7018.0 91 22 2 3.3 47,571 Tianjin Fujitsu Ten Electronics. 2004 954.8 8152.1 91 22 2 3.4 55,696

2003 195.4 1975.5 89 239 26 3.6 20,099 FTTL. 2004 278.5 2813.2 85 254 37 6.8 23,636

* Corresponding values of CO2 emission is calculated by applying the latest conversion factor in Japan. * Values at Fujitsu Ten Electronics (WUXI) Ltd. are not included.

Sales and other businesses

Amount of Amount of energy use Amount of Amount of Amount of Company Fiscal CO2 emissions (electric power waste emissions paper purchases water use name year (t-c)* equivalent/MWh) (t) (t) (m3)

2003 8.2 68.7 3 0.2 34 FTCI. 2004 8.4 63.0 23.4 0.5 —

2003 5.9 59.9 6 0.01 — FTEG. 2004 17.1 69.9 7.9 0.9 —

2003 18.9 192.0 — 0.9 783 FTSP. 2004 — — — — —

2003 4.8 48.5 — 0.9 — FTSL. 2004 12.3 50 — 0.8 —

2003 15.4 155.5 17 0.8 401 FTAL. 2004 33.4 136.0 13.3 0.8 146

2003 7.6 77.3 307 0.5 378 IAA. 2004 17.7 72.2 81.4 0.5 260

2003 — — — — — FTTT. 2004 — — — 0.2 —

2003 — — — — — FTRT. 2004 70.4 187.0 0.7 0.7 14,100

* Corresponding values of CO2 emission is calculated by applying the latest conversion factor in Japan. * Values at ETUK and FTTC are not included. Data Collection List of Fujitsu Ten Group

Established Capital Number of Employees

FUJITSU TEN LIMITED 25 October 1972 5.3 billion yen 2,966

Japan Manufacturing

TOCHIGI FUJITSU TEN LIMITED 6 January 1967 60 million yen 255

Sales

FUJITSU TEN EAST JAPAN SALES LIMITED 9 December 1988 90 million yen 111 FUJITSU TEN CHUBU SALES LIMITED 1 April 1994 30 million yen 41 FUJITSU TEN WEST JAPAN SALES LIMITED 1 April 1994 80 million yen 75

Other

FUJITSU TEN ACTY LIMITED 7 July 1992 80 million yen 49 FUJITSU TEN RESEARCH LIMITED 2 November 1992 10 million yen 23 FUJITSU TEN INFORMATION SYSTEMS LIMITED 1 October 1998 50 million yen 76

FUJITSU TEN STAFF LIMITED 1 February 2000 30 million yen 201

FUJITSU TEN TECHNOLOGY LIMITED 6 March 2003 50 million yen 149

Abroad Manufacturing

FTCA (FUJITSU TEN CORP. OF AMERICA/United States) 20 August 1976 11.5 million USD 326

FTdM (FUJITSU TEN de MEXICO, S.A. de C.V./Mexico) 14 February 1996 85 million MXN 1,134

FTCP (FUJITSU TEN CORPORATION OF THE PHILIPPINES/Philippines) 17 August 1990 130 million PHP 1,337 TIANJIN FUJITSU TEN ELECTRONICS CO., LTD. (China) 21 December 1995 8.72 million USD 2,259

FTTL (FUJITSU TEN (THAILAND) COMPANY LIMITED/Thailand) 11 August 1998 200 million THB 485 FUJITSU TEN ELECTRONICS (WUXI) LTD. (China) 2 February 2004 10 million USD 144

Sales/other

FTCI (FUJITSU TEN CANADA INC. /Canada) 20 September 1983 50 thousand USD 8 ETUK (ECLIPSE TD (UK) LIMITED/UK) 26 November 2001 200 thousand GBP 2

FTEG (FUJITSU TEN (EUROPE) GmbH/Germany) 29 December 1975 500 thousand DEM 63 FTTC (FUJITSU TEN TECHNICAL CENTER/United States) 1 October 2002 1 million USD 28

FTSP (FUJITSU TEN SOFTWARE PHILIPPINES, INC. /Philippines) 31 August 1999 30 million PHP 189 FTSL (FUJITSU TEN (SINGAPORE) PTE. LTD. /Singapore) 17 January 1990 3.5 million SGD 29

FTAL (FUJITSU TEN (AUSTRALIA) PTY. LTD. /Australia) 17 January 1990 330 thousand AUD 32 IAA (INMOTION AUDIO (AUSTRALIA) PTY. LTD. /Australia) 1 August 2000 200 thousand AUD 14

FTTT (FUJITSU TEN TRADING (TIANJIN) LTD. /China) 12 September 2003 200 thousand USD 23 FTRT (FUJITSU TEN RESEARCH & DEVELOPMENT (TIANJIN) LTD. /China) 21 November 2003 4.2million USD 67

Fujitsu Ten Group’s Overseas Production Bases

FTCA (FUJITSU TEN CORP. OF FTdM (FUJITSU TEN de MEXICO, FTCP (FUJITSU TEN CORPORATION TIANJIN FUJITSU TEN ELECTRONICS FTTL (FUJITSU TEN (THAILAND) FUJITSU TEN ELECTRONICS AMERICA/United States) S.A. de C.V./Mexico) OF THE PHILIPPINES/Philippines) CO., LTD. (China) COMPANY LIMITED/Thailand) (WUXI) LTD. (China) FUJITSU TEN LIMITED 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe 652-8510 Japan Tel. +81-78-671-5081 Printed with aroma - free soy ink Printed on 100% recycled paper For inquiries about this report, please contact the Environmental Protection Department Tel. +81-78-682-2029 Published September 2005 Next edition scheduled for August 2006

You can also access this report on the internet. http://www.fujitsu-ten.co.jp/english/ecology/ Printed by KYODO PRINTING CO.,LTD.