2nd Quarter of Fiscal Year 2023 (Ending February 28, 2024)

Financial Results Briefing Materials
October 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.
*** “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.

Summary of 2nd Quarter of FY 2023
◆Net Sales: Increase➢ Increase in overseas sales for Marine business with increase inproduction to catch-up high backlog and normalize delivery dates◆Operating Profit: Increase➢ Gross profit increased with improved production efficiency, etc.
➢ Strengthening of sales and service, continued investment in R&D◆Financial Results Forecast: Upward Revision➢ Strong overseas sales, weaker-than-expected yen, and progress inefforts to improve profitability* Foreign Exchange Sensitivity (actual results for FY 2022)[USD] Net sales: 130M yen, Operating income: 50M yen[EUR] Net sales: 180M yen, Operation income: 90M yen
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Increase in overseas sales for Marine business with production increased to catch-up high backlog
Better profit margin due to efforts to improve profitability, despite the impact of rising costs(Unit: Millions of yen)

Net Sales
Gross Profit(Sales ratio)

SG&A Expenses(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)

FY 2022
2nd Quarter

FY 2023
2nd Quarter

Year-over-Year(amount)

Year-over-Year(ratio)43,42553,022+9,597+22.1%

16,606

20,788(38.2%)(39.2%)+4,181+25.2%

15,80917,058(36.4%)(32.2%)+1,248

+7.9%

796

3,729

(1.8%)(7.0%)+2,933+368.2%+2,803+162.7%+1,743+113.4%

+168

+6.5%

+95

+7.1%

+134

+8.9%

1,722

4,525

(4.0%)(8.5%)

1,537

3,280

(3.5%)(6.2%)

2,604

2,772(6.0%)(5.2%)

1,348

1,443

(3.1%)(2.7%)

Depreciation Expenses

1,514

1,648

(Sales ratio)(Unit: Yen, annual average exchange rate)(3.5%)(3.1%)

1 USD

120

135+15+12.7%

1 EUR

135

147

+13+9.3%

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3

Analysis of Increase/Decrease in Net Sales
Decrease in domestic sales, but increase in overseas sales mainly in merchant vessels
600(Unit: 100 Millions of Yen)

Industrial Business+8.7

Marine Business+92.3550Europe+33.6500

Japan-14.4

450

Americas+5.8

400

434

Asia+37.2
OtherRegions+6.6

Foreign
Exchange
ImpactOthersBusiness-0.3

WirelessLAN Systems-4.8+23.6

530

350300Net Sales
FY 2022
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+96.0

FY 2023
2nd Quarter
4

Analysis of Increase/Decrease in Gross Profit
Increase in gross profit with increase in sales for Marine business and efforts to improve
profitability (improved production capacity, price management, etc.), despite higher cost
225

Marine Business +46.7(Unit: 100 Millions of Yen)

Sales
Increase+36.4

210

Improved
Production
Capacity+3.4

195

Price
Management,etc.
Components+10.0
Cost Increase

-19.5
180

IndustrialBusiness
Sales
Increase+1.4
ForeignExchange
Impact+16.4

WirelessLAN Systems
Sales
Decrease, etc.
-3.1

Others

-3.3

165

166

Internal factors
+49.8

150

External factors
-3.1

208

Gross Profit
FY 2022
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+41.8

FY 2023
2nd Quarter
5Analysis of Increase/Decrease in Operating Profit
Increase in profit with higher gross profit in Marine business, despite increase in SG&A
expenses with strengthened sales and service structure and continued investment in R&D
80Marine Business
Gross Profit
Increase
+46.7

7060

WirelessLAN Systems
Gross Profit
Decrease-3.1(Unit: 100 Millions of Yen)

R&D Expenses
Increase-1.750Industrial Business
Gross Profit
Increase
+1.4

4030

Expense Increase
with Personnel
Increase, etc.

-8.620Foreign Exchange
Impact on SG&A

-5.5

100837
Operating Profit

FY 2022
2nd Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+29.3

FY 2023
2nd Quarter
6Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)

500

日本 ■Americas
米州
欧州
その他
■Japan■Europeアジア■Asia ■Other32400

300

20010021268679105

109122“100M” stands for 100 Million

Marine Business
Net Sales 452 100M yen (+25.7% year-over-year)
Segment Profit 41.7 100M yen (+31.9 100M yen)⚫
⚫
⚫

Initiatives to eliminate high level of orders backlog
Price management, etc., and yen depreciation
Selection of projects based on profitability◆Japan: Net sales 87 100M yen (-14.2%)➢ Steady sales for Merchant newbuild projects➢ Decrease in sales for public sector

154◆Americas: Net sales 56 100M yen (+27.4%)➢ Increase in sales for pleasure boats◆Europe: Net sales 154 100M yen (+41.0%)43445610310287➢ Expansion in sales for Merchant, Fisheryand Pleasure boats➢ Steady increase in sales of maintenance services◆Asia: Net sales 122 100M yen (+55.1%)

0

FY 2021
2nd Quarter

FY 2022
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2023
2nd Quarter➢ Steady sales for Merchant newbuild projects
7

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

90

■OEM, ETC, etc.
■Healthcare■Defense Equipment ■Wireless LAN Systems

75176045206102136

Industrial Business
Net Sales 60 100M yen (+16.9% year-over-year)
Segment Profit +0.4 100M yen (+0.8 100M yen)⚫
⚫

101032

Increase in sales for each sector of Industrial business
Manufacturing cost increase for Defense Equipment◆OEM, ETC, etc.: Net sales 32 100M yen (+0.8%)➢ Decrease in sales for OEM products➢ Increase in sales for ETC and GNSS products

15◆Healthcare: Net sales 14 100M yen (+37.1%)➢ Increase in sales for clinical chemistry analyzers

14◆Defense Equipment: Net sales 15 100M yen (+47.2%)30

15“100M” stands for 100 Million

32

Wireless LAN Systems
Net Sales 17 100M yen (-22.2% year-over-year)
Segment Profit -0.0 100M yen (-2.9 100M yen)0

FY 2021
2nd Quarter

FY 2022
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2023
2nd Quarter⚫

Decrease in sales for wireless LAN access pointin the education market
8Forecast for FY 2023: Upward Revision
Efforts to improve profitability, impact of yen depreciation, andexpected firm demand environment in the Marine business
FY 2022

FY 2023

FY 2023Results

Previous Forecast

Revised Forecast

Net Sales

91,325100,000

105,000

Operating Profit

1,523

3,000

5,000

(1.7%)(3.0%)(4.8%)

2,593

4,000

6,000

(Sales ratio)(2.8%)(4.0%)(5.7%)

Profit Attributableto Owners of Parent

1,348

2,500

4,500

(Sales ratio)(1.5%)(2.5%)(4.3%)(Unit: Millions of yen)

(Sales ratio)

Ordinary Profit

Revision of dividend with revision of financial results forecast
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202210152558.5%

FY 2023 Previous Forecast

10152531.6%FY 2023 Revised Forecast

202545

31.6%(Unit: Millions of yen)

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9Appendix: Consolidated Balance Sheet(Unit: Millions of yen)

Full Year FY 2022 2nd Quarter FY 2023

Current assets

82,28085,487(Cash and deposits)(Inventories)(15,376)(40,694)(12,348)(44,915)

Fixed assets

24,116

24,731(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,914)(4,034)(6,167)(14,129)(4,091)(6,511)

Total assets

106,396

110,219

Current liabilities
Long-term liabilities

37,525
16,36836,872
15,441

Total liabilities

53,89352,313

Shareholders’ equity
OthersNon-controlling interests

50,0232,089
389

52,858
4,643
404

Total net assets

52,50357,905

Total liabilities and net assets

106,396

110,219

Equity ratio

49.0%

52.2%

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10Topics

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11

Topics
Participation in the second stage of the Nippon Foundation's
Unmanned Vessel Project: Social Implementation
Program Overview
1. Demonstration ExperimentDesign next-generation vessels and conduct ship-land operation
demonstrations envisioning the future coastal shipping industry.
2. Standardization of developed technologies
Refine the unmanned ship operation technologies developed in the firststage and standardize them internationally.
3. Reinforcement of development process infrastructure

Advance simulation technology and generalize risk assessment based on
the development process infrastructure established in the first stage.
4. Social implementation
Commercialize the automatic navigation and establish a certification
scheme necessary for commercialization.
FURUNO Initiatives
Autonomous navigation functions on board the vessel: information
recognition, automatic navigation avoidance, etc.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

12Topics
FURUNO dominates 2023 NMEA Product of Excellence Awards
About NMEA (National Marine Electronics Association)
The awards are given every fall to the products with the best design, performance, and reliability among marine
electronic equipment released that year. FURUNO has received the NMEA Best Manufacturer Award in the "FishFinder Category" for 53 consecutive years since 1971.
FURUNO’s awards at the 2023 NMEAAwards in other categories*Radar
NMEA2000 Sensor
Fish Finder
Marine Software
Commercial
Best New ProductMarine Specialty*

Fish Finder

Scanning Sonar

FCV-800

CSH-8L MARK-2

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*: consecutive awards formultiple years
13Topics
Publishment of FURUNO’s Integrated Report 2023
Toward a sustainable society and further corporate value
This report focuses on our business vision "Achieve better safety, security
and comfort to bring about a society and sea navigation that considers theneeds of people and the environment," and introduces our vision andefforts to realize a sustainable society.

We will continue to promote constructive dialogue with our stakeholders
and aim to further enhance our corporate value through better information
disclosure in this Integrated Report and on our website.
For details, please refer to the "Integrated Report" page on our officialwebsite.
https://www.furuno.co.jp/en/csr/report/

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

14

FURUNO’s Business Outline

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15

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, 2023

Nishinomiya Headquarter

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

3,310 (consolidated)

Consolidated Sales¥91,325 million

President

Yukio Furuno

Stock Exchange
Listing

Tokyo Stock Exchange,
Prime Section

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/
16

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

RadarVoyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasound
BoneDensitometer

ClinicalChemistry
Analyzer

ETC17

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

Autopilot
18

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 only19