2030 Management Policy

We have formulated the Management Policy to Achieve Vision 2030 based on the Furukawa Electric Group Purpose.

Management Policy to Achieve Furukawa Electric Group Vision 2030 (full documents) (PDF 5.4MB)

Furukawa Electric Group Purpose
Overview of the Purpose-driven Management Policy
Overview of the Medium- to Long-term Scenario
Financial Target Levels and Investment Amount
Cash Allocation
Shareholder Return Policy
Management Priorities

Furukawa Electric Group Purpose

Overview of the Purpose-driven Management Policy

A newly defined value creation story
Six “Key Management Priorities” have been identified. By addressing these priorities, we aim to enhance corporate value over the medium to long term

Overview of the Medium- to Long-term Scenario

Focus on data center-related businesses through 2030
Then expand into business areas that address the evolution of data centers, as well as energy-related fields such as electric power
Over the longer term, enter new business domains aligned with our Purpose of “Composing the core of a brighter world.”

Financial Target Levels and Investment Amount

Accelerate investments in the growth domains centered on the data center-related business ^(note)
Expect to achieve operating profit of JPY 250.0 billion and operating profit margin over 10% in FY2030 (including JPY 200.0 billion from the data center-related business)
Further improvement in ROE and ROIC

note

The data center-related business includes Lightera, Thermal Management Solutions & Products, FITEL Products, AT(Tape for semiconductor process), Memory Disk, Copper Foil and Photonics-Electronics Convergence Devices

Cash Allocation

Total free cash flow during the 5 years through FY2030 is expected to be JPY 240.0 billion
In FY2026 and FY2027, capital procurement will temporarily increase for the purpose of investments
While providing shareholder returns, will proceed with the repayment of outstanding debt in order to further strengthen the financial base

Shareholder Return Policy

Change from the current shareholder return policy of “target a dividend payout ratio of about 30%”
While accelerating the investments in the focus domains, maintain stable dividends that are not affected by fluctuations in profit levels

Basic Policy	During the Vision 2030 period (FY2026-FY2030), the Company aims to maintain stable shareholder returns while continuing investments to enhance corporate value, with dividends generally targeting 3.5% of shareholders’ equity. note ”Shareholders’ equity” used for dividend calculation is defined as the period-average balance of total equity, excluding non-controlling interests.

Management Priorities

Management Priorities ①Creation of Information-Based Social Infrastructure

Data Center-Related Business

Respond to larger capacity, higher heat generation and increased density at data centers, and provide solutions to the problem of energy consumption
Operating profit in the data center-related business is expected to be JPY 200.0 billion (Level to be achieved in 2030)

Renewable Energy and HVDC-Related Business

Create a business structure that will respond to growing renewable energy demand
Toward the 2030s, invest in HVDC and develop the business structure

Management Priorities ②Challenges in New Businesses Contributing to Solving Issues

Accelerate the creation, incubation and launch of new businesses

Management Priorities ③Optimization of Business and Product Portfolio

Driving portfolio optimization through business-level FVA monitoring
Portfolio enhancement via business and organizational restructuring during the 2025 Mid-Term Plan
Ongoing optimization of the business and product mix through FVA ^(note) monitoring