1st Quarter of FY 2/2020

Financial Results Briefing Materials
July 11, 2019

Points to Note:

This document is a translation of the Japanese original. The Japanese original is authoritative.
The information listed in these materials reflect the Company’s future prospects as determined by management, based on theinformation available at the time of announcement, and include potential risks and uncertainties. It should be noted that the actual
results may differ substantially from these forecasts, due to these various elements.
The numerical values shown in these materials are the monetary amounts listed in the consolidated balance sheet, consolidated profitand-loss statement, consolidated statement of changes in shareholders’ equity, and notes to consolidated financial statements. Shownvalues of less than one unit are truncated, and ratios and other values are rounded off.
* “FY” in this material indicates the fiscal year ending February 28( 29 ) of the succeeding year.
** “1Q” in this material represents the three-month period beginning on March 1 and ending on May 31.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2/2020 1st Quarterly Points of the Results

 Net Sales: Increase

In Japan and the Asia, net sales grew for the Marine Business.

Net sales for the Industrial Business and Wireless LAN
Systems declined.

 Profit: Decrease

Operating income declined due to increased COGS, andincreased selling, general, and administrative expenses.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

FY 2/2020 1st Quarterly Results Highlights
Unit: Millions of Yen

Net sales
Gross profit

FY 2/2019
1st Quarter

20,3138,774

FY 2/2020
1st Quarter

Year-over-year( amount )Year-over-year( ratio )

20,6527,611+339-1,163+1.7%-13.3%

779-1,404-64.3%-60.3%( Sales ratio )( 43.2% )( 36.9% )( Sales ratio )( 10.8% )( 3.8% )2,202874-1,328( 10.8% )( 4.2% )( -6.6 )

1,869

897

-972

( 9.2% )( 4.4% )( -4.8 )

1,125

1,230

+105

+9.3%
-33.3%

Operating income
Ordinary income( Sales ratio )Profit attributable toowners of parent( Sales ratio )R＆D expenses( Sales ratio )Capital investment
expenses( Sales ratio )Depreciation expenses( Sales ratio )Unit: Yen, annual average exchange rate

1USD1EURFURUNO ELECTRIC CO., LTD. All Rights Reserved.

2,183( -6.3 )( -7.0 )( 5.5% )( 6.0% )( +0.5 )

702468-234( 3.5% )( 2.3% )( -0.8 )( 3.5% )

110
133

715

779

-52.0%( 3.8% )+64( +0.3 )

+9.0%

111
126

+1-7+0.7%-5.4%
3

Analysis of Increase/Decrease in Net Sales
220

Unit: 100 Millions of Yen

Foreign

Asia+5.4215

Japan

Other-0.5Communications-2.3 & GNSS Solutions,-3.2210

Marine Business+9.2effect

Other+8.7 North America
Europe-2.6+0.4

205

exchange

Healthcare

WirelessLANSystems-0.5-2.1

IndustrialBusiness-3.7207

203
200

FY 2/2019

FY 2/2020

1st Quarter

1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

*Exchange Rate Sensitivity ( actual results as of February 28, 2019 )[USD] Net sales 1.2 100M yen, Operating income 0.5 100M yen[Euro] Net sales 1.4 100M yen, Operating income 0.6 100M yen4Analysis of Increase/Decrease in ProfitAnalysis of Increase/
売上総利益の増減分析

Analysis of Increase/Decreasein Operating IncomeDecrease in Gross Profit on Sales

Unit: 100 Millions of Yen

Unit: 100 Millions of Yen

95Netsales
increase
90+1.485

25

Improved
production
efficiency

+1.4

20

Increasein humanresource-related
expenses
Changes-0.9
in theproductmix

15

Increase in grossprofit on sales-11.6

Increase in
human resourcerelated expenses-5.1

Increase ineliminationof unrealized
income80-6.8Foreignexchangeeffect70

10-1.7

Other75

87.7

-11.6

7.6

FY 2/2019

FY 2/2020

1st Quarter

1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

0Foreign exchange
effect-0.7

Other, Increasein SG&A
expenses

5+0.1

Gross profit on sales

-0.6

-1.1

21.8

7.8

FY 2/2019

FY 2/2020

1st Quarter

1st Quarter
5

Overview of Marine Business“100M” in this material indicates 100 Million

Marine Business:

Net sales by Marine Business/Sales by Region
200North America

939100500Segment Profit 6.2 100M yen ( -11.5 100M yen )Unit: 100 Millions of Yen

Japan150

Net sales 171 100M yen ( +5.6% year on year )Europe841

4147

19194749

FY 2/2018
1st Quarter

FY 2/2019
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Asia

Other74645
1757⇒ Revenue rose in Japan and Asia
⇒ Profit declined due to changes in the product mix,increased elimination of unrealized income,foreign exchange effects, and other factors.

Japan: Net sales 57 100M yen ( +17.8% ) Revenue substantially increased for newly built
Merchant vessels and Fishing vessels.

North America: Net sales 17 100M yen ( -12.0% ) Revenue from small-sized products declined.

Europe: Net sales 45 100M yen ( -4.4% ) Revenue slightly decreased due to foreign exchange
effects, but remained strong for retrofitting ofMerchant vessels.

Asia: Net sales 46 100M yen ( +13.1% )FY 2/2020
1st Quarter Revenue increased for both newly built Merchantvessels and for retrofitting.
6

Overview of Industrial Business, Wireless LAN Systems
Net sales by Industrial Business& Wireless LAN Access Point/Sales by Products
50

Unit: 100 Millions of Yen

Wireless LAN Systems
Industrial Other
Healthcare
Communications & GNSS Solutions

4030

8420

10084592316

FY 2/2018
1st Quarter

FY 2/2019
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

63520

FY 2/2020
1st Quarter“100M” in this material indicates 100 Million

Industrial Business:

Net sales 27 100M yen ( -11.7% year on year )Segment Profit 1.4 100M yen ( -2.0 100M yen )⇒ Communications & GNSS Solutions remain healthy
despite declines in revenue from the previous year
due to fewer large deals.
⇒ Healthcare recorded declined revenue due tosluggish sales of our machinery.

Communications & GNSS Solutions:
Net sales 20.4 100M yen( -9.6% )Healthcare: Net sales 4.7 100M yen( -10.4% )Wireless LAN Systems:
Net sales 6.1 100M yen ( -23.0% year on year )Segment Loss 0.1 100M yen( -0.8 100M yen )⇒ Wireless LAN Access Point saw a revenue decline inthe 1st quarter.
Deals were concentrated in the 2nd quarter.
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Corporate Profile

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

8

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 ofproducts that have been world firsts and Japan firsts.

As of Feb 28, 2019

Company NameFURUNO ELECTRIC CO., LTD.

Headquarters

Nishinomiya City, Hyogo, Japan

Incorporated

May 23, 1951

Business

Manufacturing and sale of maritime andindustrial electronic products

Paid-in Capital

7,534 million yen

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

9

FURUNO's Business Fields

GPS/GNSS
Disciplined
OscillatorAutomatic
Identification
System ( AIS )Satellite
Communications
Equipment

GPS/GNSS
Displacement Continuous
Remote Monitoring
SystemMeteorological
Monitoring andAnalysing
SystemWireless
Access Points

Radar

GPS/GNSS
Receiver for Car
Navigation
SystemVoyage Data
Recorder( VDR )GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi Beam
Sonar

UltrasoundBone
Densitometer
ClinicalChemistry
Analyzer

ETC10