3rd Quarter of Fiscal Year 2022 (Ending February 28, 2023)

Financial Results Briefing Materials
January 16, 2023

FURUNO ELECTRIC CO., LTD.
Cautions:
This document is a translation of the Japanese original, which is authoritative.
The information listed in these materials regarding the Company’s forecasts are determined by management, based on the information available at the time ofannouncement, and potential risks and uncertainties. It should be noted that the actual results may differ substantially from these forecasts, due to these variouselements.
The numerical values shown in these materials are the monetary amounts listed in the consolidated balance sheet, consolidated profit-and-loss statement,
consolidated statement of changes in shareholders’ equity, and notes to consolidated financial statements. Shown values of less than one unit are truncated, andratios and other values are rounded off.
* “E” in this material represents that the figure is an estimation or a projection for operation.
** “FY” in this material indicates the fiscal year ending February 28 (29) of the succeeding year.
*** “3Q” in this material represents the nine-month period beginning on March 1 and ending on November 30.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of 3rd Quarter of FY 2022
◆ Net Sales: Increase➢ Increase in overseas sales, especially Europe, for Marine Businesshelped by a weak yen, despite sales opportunities loss withproduction delays◆ Gross Profit: Increase➢ Increase in gross profit with increase in sales for Marine Business,despite soaring components prices◆ Operating Profit: Decrease➢ Increase in SG&A expenses with investments for future growth

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2Consolidated Income Statement
Increase in SG&A expenses with continuous investments for future growth(Unit: Millions of yen)

FY 2021
3 Quarter

FY 2022
3 QuarterYear-over-Year(amount)

Year-over-Year(ratio)

Impact Amount*

Net sales
Gross profit

62,61324,05764,979+2,366

+3.8%

+500

25,252(38.4%)(38.9%)+1,194

+5.0%

+84

2,835

1,324

(4.5%)(2.0%)-1,510-53.3%

+84

3,343

2,306

(5.3%)(3.6%)-1,036-31.0%*Change inaccounting standard

2,270

1,276-993-43.8%(3.6%)(2.0%)

3,896

4,119(6.2%)(6.3%)

+222

+5.7%

2,549

1,962(4.1%)(3.0%)-586-23.0%

2,318

2,260

(3.7%)(3.5%)-58-2.5%

1 USD

108

125+17+15.9%

1 EUR

130

136+6+4.7%

rd(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

R&D expenses(Sales ratio)

Capital investment(Sales ratio)

Depreciation expenses(Sales ratio)rd(Unit: Yen, annual average exchange rate)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales
Addition of consolidated subsidiaries and overseas sales increase in Marine Business
660(Unit: 100 Millions of Yen)

IndustrialBusiness+0.5

650

640

Asia-3.2630

OtherRegions-1.3

WirelessLAN Systems+4.7

Europe+6.1
Japan+2.0

Other Business+0.5

Americas+0.4
Consolidated
Subsidiaries

620+14.1626

650

Marine Business+18.1

610

600

FY 2021
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Sales

+23.7

FY 2022
3rd Quarter

4Analysis of Increase/Decrease in Gross Profit on Sales
Increase in components prices but increase in overseas sales, etc. in Marine Business
270(Unit: 100 Millions of Yen)
260

MarineComponents
Prices Increase, etc.

250

Wireless LAN Systems
Sales Increase.
+2.0

MarineOverseas Sales
Increase, etc.
+32.5

-24.1

OthersIndustrial
Sales Increase, etc.
+1.9

240

-0.4

230

241

253

220

MarineOverseas Sales
Increase, etc.

210

+32.7
200

FY 2021
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit on Sales+11.9

FY 2022
3rd Quarter5Factors Increasing SG&A Expenses
Continue to accelerate investments for future growth(Unit: 100 Millions of Yen)

Increase in personnel to strengthen service and R&D, etc.

+8.4

Consolidated addition of subsidiaries for overseas R&D+6.6

Increase in promotion expenses (exhibitions in new fields, etc.)+3.3

Increase in strategic investments in new businesses, etc.

+0.3

Foreign exchange impact on SG&A expenses+7.8

Increase in business-related expenses+2.2

Others-1.5

Investments for future growth
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Increase in consolidated
SG&A expenses+27.16

Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)600

日本 ■Americas
米州
欧州
その他
■Japan■Europeアジア■Asia ■Other
32500

21400

4160

Segment Profit 14.5 100M yen (-15.3 100M yen)⚫

Sales opportunities loss with production delays due todifficulties in obtaining parts and materials
Increase in sales mainly in Europe with weak yen
Decrease in profit due to increase in SG&A expenses
for future growth (service, R&D, etc.)

124

⚫
⚫

155

163

◆Japan: Net sales 144 100M yen (+1.4%)

129
200

Change in accounting standard
Marine Business:
Sales: +1.0, Profit: +1.3 (100M yen)
Net Sales 541 100M yen (+3.5% year-over-year)

123120300“100M” stands for 100 Million➢ Steady sales
6969◆Americas: Net sales 69 100M yen (+0.6%)➢ High demand for equipment for pleasure boats◆Europe: Net sales 163 100M yen (+5.0%)

1001341421440

FY 2020
3rd Quarter

FY 2021
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2022
3rd Quarter➢ Increase in service sales, strong demand for
Merchant and Pleasure Boats◆Asia: Net sales 123 100M yen (-0.8%)➢ Merchant newbuild projects recovering
7Overview of Industrial BusinessIndustrial Business Consolidated Sales(by Product)(Unit: 100 Millions of Yen)

160

■OEM, ETC, etc. ■Healthcare■Other Industrial ■Wireless LAN Systems

140

Segment Loss 0.2 100M yen (+1.5 100M yen)

⚫
⚫

61
100

2530801591315161740

20

Change in accounting standard
Industrial Business:
Sales: +4.0, Profit: -0.5 (100M yen)
Net Sales 76 100M yen (+0.7% year-over-year)

⚫

120

60

“100M” stands for 100 Million

5152

44

◆OEM, ETC, etc.: Net sales 44 100M yen (-15.8%)◆Healthcare: Net sales 17 100M yen (+11.4%)
in accounting standard
Wireless LAN Systems: Change
Sales: +0.0, Profit: -0.0 (100M yen)

Net Sales 30 100M yen (+18.4% year-over-year)
Segment Profit 3.3 100M yen (+0.2 100M yen)⚫

0

FY 2020
3rd Quarter

FY 2021
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Decrease in sales of ETC on-board units
due to decline in automobile sales
Increase in sales of OEM contract products
Health Care Business: Steady sales ofClinical Chemistry Analyzers

Wireless LAN Access Point: Strong sales for
replacement projects in the education market

FY 2022
3rd Quarter8

Consolidated Balance Sheet
FY 2021 FY

FY 2022 3Q

Current assets

62,01079,104(Cash and deposits)(Inventories)(14,350)(27,693)(15,815)(38,884)

Fixed assets

23,96324,211(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,400)(4,276)(6,286)(13,773)(4,061)(6,376)

Total assets

85,973103,316

Current liabilities
Long-term liabilities

25,02313,06836,512
13,668

Total liabilities

38,09250,180Shareholders’ equity
OthersNon-controlling interests

48,795-914049,953
2,817
364

Total net assets

47,88053,135

Total liabilities and net assets

85,973103,316

Equity ratio

55.7%

51.1%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Appendix: Corporate Outline
Since commercializing the world's first Fish Finder in 1948, FURUNO has supplied many
types of products for the marine electronics market. By using its exclusive knowledge ofultrasonic and electronics technologies, FURUNO has developed a wide array of products thathave been world firsts and Japan firsts.
As of February 28, 2022

Nishinomiya Headquarter

New R&D Building SOUTH WINGFURUNO ELECTRIC CO., LTD. All Rights Reserved.

Company NameFURUNO ELECTRIC CO., LTD.

Headquarters

Nishinomiya City, Hyogo, Japan

Incorporated

May 23, 1951

Business

Manufacturing and sale of maritime
and industrial electronic products

Paid-in Capital¥7,534 million

Number of Employees 3,065 (consolidated)
Consolidated Sales¥84,783 million

President

Yukio Furuno

Investor Relations: http://www.furuno.co.jp/en/ir/
Products Site: http://www.furuno.com/en/
Corporate Movie: http://www.furuno.com/special/en/corporatemovie/
11Appendix: FURUNO’s Business Fields

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

GPS/GNSS
Displacement Continuous
Remote Monitoring
SystemMeteorological
Monitoring andAnalyzing
SystemWireless LAN
Access Point

Radar
Voyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasoundBone
Densitometer

ClinicalChemistry
Analyzer

ETC

12Appendix: FURUNO’s Marine BusinessFor Merchant Vessels

ECDIS(Electronic Chart Displayand Information System)

Radar

Satellite Communications
Equipment

For Fishing Vessels

Sonar

Fish Finder

Radar

Multi-Function Display

Current IndicatorRadiotelephone

For Pleasure BoatsFURUNO ELECTRIC CO., LTD. All Rights Reserved.

GPS/WAAS
Chart Plotter

Autopilot
13

Appendix: FURUNO’s Industrial Business
OEM, ETC, etc.

ETC2.0 / ETC *ETC, Vehicle
Management Solution*

GPS / GNSS
Chips & Modules

Healthcare

Clinical Chemistry Analyzer & Reagent

Ultrasound Bone Densitometer

Wireless LAN Systems

Wireless LAN Access Point*
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Wireless Handheld Terminal**Japanese market only14