Fiscal Year 2021 (Ended February 28, 2022)

Financial Results Briefing Materials
April 14, 2022

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.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of Fiscal Year 2021 Net Sales: Increase
Sales recovery for Marine Businessmainly in Europe and the Americas
 Profit: Decrease
End of special demand for GIGA School
for Wireless Access PointImprovement in overall profitability forcore Marine Business
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Improvement in overall profitability for core Marine Business.
Continuous investments for the future.
(Unit: Millions of yen)

FY 2019

FY 2020

FY 2021Year-over-Year(amount)

Year-over-Year(ratio)Net sales
Gross profit

83,06628,52482,25530,83984,783+2,528+3.1%

31,638(34.3%)(37.5%)(37.3%)

+798

+2.6%

2,411

3,740

2,532

(2.9%)(4.5%)(3.0%)-1,208-32.3%

2,702

4,779

3,717

(Sales ratio)(3.3%)(5.8%)(4.4%)-1,061-22.2%

Profit attributable to ownersof parent

2,041

3,946

2,814

-1,132-28.7%(Sales ratio)(2.5%)(4.8%)(3.3%)

4,266

5,303

5,458

(5.1%)(6.4%)(6.4%)

+155

+2.9%

3,245

4,235

4,670

(3.9%)(5.1%)(5.5%)+434+10.3%

3,246

3,160

3,161

(3.9%)(3.8%)(3.7%)+1+0.1%110123107122109
130+2+8+1.7%+6.6%(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit

R&D expenses(Sales ratio)

Capital investment(Sales ratio)

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

1USD
1EUR
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales
Sales recovery for Marine Business mainly in Europe and the Americas.
700

650

Marine Business
Net Sales Decrease
-38.4

600

550

Industrial Business
Net Sales Decrease-4.3(Unit: 100 Millions of Yen)

831

IndustrialBusinessNet Sales
Decrease-7.8

OtherBusiness+0.3
Other Business-1.2

Marine Business
Foreign Exchange
Wireless
ImpactLAN Systems-4.9
Net Sales Increase
+44.1

823

Sales

500

FY 2019-8.1

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

MarineBusiness
ForeignExchange
ImpactMarine +13.8
Business
Net Sales
Increase+62.3

WirelessLANSystems
Net Sales Decrease-46.8848

Sales
FY 2020+25.3

FY 20214Analysis of Increase/Decrease in Gross Profit on Sales
Despite Gross profit push down due to component prices increase,overall improvement in profitability for Marine Business.
400(Unit: 100 Millions of Yen)

MarineBusiness
Sales
Increase

350

Industrial
Business
Inventory
Reduction,
etc.
+4.2

Marine Business
Sales Decrease

-9.6

300

250

285-1.8

Others+18.7

Others+0.9+5.1

Wireless
Marine Business
LAN Systems
Foreign
Sales
Exchange
Increase, etc.
Impact-3.2

Industrial
Marine BusinessBusiness
Profitability
Sales
Improvement, etc.
Decrease, etc.
+13.5

MarineBusiness
Foreign
Exchange
Impact308

Marine Business
Component
PricesIncrease-5.6

Wireless
LAN Systems
Sales
Decrease, etc.

-27.4+9.7

316+26.6

200

FY 2019

Gross Profit on Sales+23.2

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020Gross Profit on Sales+8.0

FY 20215Analysis of Increase/Decrease in Operating Profit
Increase in SG&A expenses in Marine Businesswith acquisition of overseas subsidiaries, etc.
Marine Business
Increase in Expenses-12.2(Unit: 100 Millions of Yen)
75

Marine+20.3

Industrial,
Wireless LAN

-26.7

60

Wireless
LAN Systems
Gross Profit
on Sales Increase, etc.

Marine Business
45

Gross Profit
on SalesDecrease-12.730

15

MarineBusiness

Marine Business
Foreign Exchange
Impact onSG&A Expenses-3.7+21.0

Foreign Exchange
Impact on
SG&A Expenses+1.024IndustrialBusiness
Gross Profit
on SalesDecrease, etc.

-3.4

StrategicInvestments,etc.
-1.6

Marine Business

37

Gross Profiton Sales Increase+36.3

WirelessLAN Systems
Gross Profit
on Sales Decrease, etc.

25-23.2

Industrial Business
Marine Business
Increase in Expenses-0.2

StrategicInvestments, etc.
-5.8

Gross Profit onSales Increase, etc.
+6.0

0

FY 2019

Operating Profit+13.3
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020

Operating Profit

FY 2021-12.1
6

Overview of Marine Business
Marine Business Consolidated Sales(by Region)
800

日本 ■Americas
米州
欧州
その他■Japan■Europeアジア■Asia ■Other700

422728186
500

168165400184

Marine Business:
Net Sales 705 100M yen (+12.1% year-over-year)
Segment Profit 27.7 100M yen (+20.4 100M yen)

(Unit: 100 Millions of Yen)

600

“100M” stands for 100 Million



Recovery trend in new-build demand, strong
retrofit demand, stability in demand in Fisherymarket, and strong sales for Pleasure BoatsJapan: Net sales 195 100M yen (+6.3%)
209172

 Steady growth of sales helped by projects eligiblefor business subsidy from Ministry of Agriculture,Forestry and Fisheries

Americas: Net sales 91 100M yen (+13.1%)300

812008191

 Sales increase both for Pleasure Boatsand Fishery market

Europe: Net sales 209 100M yen (+21.4%)
1001951841950

FY 2019

FY 2020FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2021

 Strong sales for Merchant Vessels,
significant increase for Pleasure BoatsAsia: Net sales 168 100M yen (+2.3%)
 Sales increase for Merchant Vessels
with higher sales in new-build market

7Overview of Industrial Business
250

Industrial Business Consolidated Sales(by Product)(Unit: 100 Millions of Yen)200

■PNT ■Healthcare ■Other Industrial■Wireless LAN Systems“100M” stands for 100 Million

Industrial Business:
Net Sales 104 100M yen (-4.0% year-over-year)
Segment Loss -0.2 100M yen (-3.4 100M yen)


82150



3836100

211723181619PNT Business: Sales increase for on-board ETC
and GNSS Oscillator with 5G areas expansion
Healthcare: Sales increase for Chemistry
Analyzer and Reagent
Sales decrease in contracted businessdue to lower renewal demand

PNT Business: Net sales 68 100M yen (-3.1%)
Healthcare: Net sales 19 100M yen (+14.4%)

Wireless LAN Systems:50787068Net Sales 36 100M yen (-56.8% year-over-year)
Segment Profit 4.5 100M yen (-23.2 100M yen)
0FY 2019

FY 2020FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2021

Wireless LAN Access Point: end of special
demand for GIGA School8Consolidated Balance Sheet
Continuous decrease in Commercial products but increase in raw materials.
Increase in “Tangible fixed assets” with construction of new R&D Building.
(Unit: Millions of yen)

FY 2020

FY 2021 YoY (amount)

YoY (ratio)

Current assets

60,77062,010+1,239+2.0%(Cash and deposits)(Inventories)(15,301)(24,028)(14,350)(27,693)(-950)(+3,664)(-6.2%)(+15.3%)Fixed assets

21,47823,963+2,484+11.6%(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(11,184)(4,645)(5,648)(13,400)(4,276)(6,286)(+2,215)(-369)(+638)(+19.8%)(-8.0%)(+11.3%)

Total assets

82,24885,973+3,724+4.5%

Current liabilities
Long-term liabilities

22,93013,62625,02313,068+2,093
+557

+9.1%
-4.1%

Total liabilities

36,55638,092+1,536+4.2%

Shareholders’ equityOthers
Non-controlling interests

48,333-2,973
332

48,795-914
0+461+2,059-332+1.0%-69.3%-100.0%Total net assets

45,69247,880+2,188+4.8%

Total liabilities and net assets

82,24885,973+3,724+4.5%

Equity ratio

55.1%

55.7%

+0.6P

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9

Consolidated Financial Results Forecast for FY 2022
Continuous initiatives to improve the structure and strength of the company for further
profitability. Uncertainties regarding production delays and rising material prices but
working on necessary measures to meet strong demand from customers.
Fiscal Year 2021
Results

Fiscal Year 2022Forecast

Net sales

84,78382,000Operating income

2,532

2,000

(3.0%)(2.4%)

3,717

2,500

(4.4%)(3.0%)

2,814

2,000

(3.3%)(2.4%)(Unit: Millions of yen)

(Sales ratio)

Ordinary income(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

Dividend Forecast based on 30% Payout Ratio policy
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202120204044.8%

FY 2022 Forecast10102031.5%(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Corporate Vision

Business Vision:Achieve better safety, security, and comfort, to bring abouta society and sea navigation that considers the needsof people and the environment

Human Resources and Corporate Culture Vision:
VALUE through GLOBALIZATION and SPEED

Growth Targets for FY 2030:
 Consolidated Net Sales of 120 billion Yen
 Operating Margin of 10%
 New Business Composition Ratio of 30%
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11Mid-Term Management Plan
We will progressively and promptly work toward realizing the FURUNO GLOBAL VISION“NAVI NEXT 2030” through the following three phases.

FY 2020-2022

FY 2023-2025

FY 2026-2030

Phase 1

Phase 2Phase 3

AdvanceConnect

Transform

Strengthening Capabilities and Improving Structure(1) Stronger inventory control and appropriate inventory levels(2) Further Increase in Quality Level(3) Optimization of Product Development Functions(4) Optimization of Comprehensive Manufacturing Functions(5) New Strategic Investment Quota

Targets for Fiscal Year 2022:
ROE (based on operating income): 10% or higher
Payout Ratio: 30% or higher
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

12

Strengthening Capabilities and Improving Structure(1) Stronger inventory control andappropriate inventory levels(2) Further Increase in Quality Level

Promote the reduction of inventories in all areas of thevalue chain by working together to refine productionplans by improving the demand forecasts accuracy, review
logistics systems by optimizing distribution bases, andshortening procurement and production lead times.

Based on the “Quality Before Everything” mentality,
we aim to further reduce the cost of quality loss byreviewing and steadily implementing back-to-basics
quality processes in each business division, fostering
quality management human resources by upgrading thequality education system, and fostering the corporateculture.

(3) Optimization of ProductDevelopment Functions(4) Optimization of Comprehensive
Manufacturing Functions

Improve development efficiency by optimizing theglobal development system, promoting common design,utilizing simulation, and automating the inspection
process.

Further evolve FPS* activities, which have been
continuously implemented since 2012, to optimize theglobal production system, automate production processes,
expand configurated production, etc., and thoroughly
eliminate waste and promote 1/2 manufacturing.

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*FPS: Furuno Production System: Building a production system suitable for ourcharacteristic “3 Multiples” (Multiple models, Multiple types, Multiple man-hours)

13Initiatives for Future Growth(5) New Strategic Investment Quota
Investment for future growth in Phase 2 and beyond,including fostering new businesses, R&D including
advanced technology areas, business expansion into
peripheral areas of existing businesses, and infrastructuredevelopment.
New R&D Workspace (completed September 2021)

Aquaculture Support Business
Full-scale sales of aquaculture equipment and services,using AI and other technologies, from 2022. Systemalready introduced at bluefin tuna and yellowtail
aquaculture sites, mainly by major fishery companies.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Supporting offshore wind power generation projects
With our ocean sensing technology and know-how in fisheries,
resource surveys, and marine civil engineering cultivated over 70years, we provide consistent support from assessment toconstruction management and post-completion maintenance foroffshore wind power generation facilities.
14Appendix: FURUNO’s Business Outline

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15

Appendix: Consolidated Cash Flow Statement(Unit: Millions of yen)

Cash Flowfrom Operating Activities
Cash Flowfrom Investing Activities
Free Cash Flow
Cash Flowfrom Financing Activities
Cash and cash equivalents(end of year)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Fiscal Year 2020

Fiscal Year 2021 YoY (amount)

8,512

6,193

-2,319-4,553-4,389

+164

3,959

1,803

-2,155-850-3,518-2,667

14,804

13,864-940

16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
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Company NameFURUNO ELECTRIC CO., LTD.

Headquarters

Nishinomiya City, Hyogo, Japan

IncorporatedMay 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/
17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 PointRadarVoyage Data
Recorder(VDR)

GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasound
BoneDensitometer
ClinicalChemistry
Analyzer

ETC18

Appendix: FURUNO’s Marine Business
For 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

Autopilot19

Appendix: FURUNO’s Industrial BusinessPNT

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 only20