2nd Quarter of Fiscal Year 2021 (Ending February 28, 2022)

Financial Results Briefing Materials
October 14, 2021

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 future prospects are determined by management, based on the information available at the timeof announcement, 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.
*** “2Q” in this material represents the three-month period beginning on March 1 and ending on August 31.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of 2nd Quarter of FY 2021

 Net Sales: Increase Sales recovery for Marine Business mainly in Europe and the Americas

 Profit: Increase Increase in Profit with improvement of profitability in Marine Business Forecast for FY2021: Upward Revision
 Increase in Profit, with improvement of profitability in Marine
Business outweighing loss of special demand for GIGA School

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Increase in Profit with improvement of profitability in Marine Business.
Continuous investments for future growth.
(Unit: Millions of yen)

FY 2019
2nd Quarter

FY 2020
2nd Quarter

FY 2021
2nd Quarter

Year-over-Year(amount)

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

43,04015,55739,274
14,553

43,139+3,864+9.8%

16,923(36.1%)(37.1%)(39.2%)+2,370+16.3%

2,297

1,667

2,900

(5.3%)(4.2%)(6.7%)+1,233+74.0%

2,430

1,956

3,283

(Sales ratio)(5.6%)(5.0%)(7.6%)+1,327+67.8%

Profit attributable to ownersof parent

2,188

1,546

2,844+1,298+84.0%(Sales ratio)(5.1%)(3.9%)(6.6%)

2,234

2,353

2,611

+257

(5.2%)(6.0%)(6.1%)+10.9%

1,028

1,467

2,256+789(2.4%)(3.7%)(5.2%)+53.8%

1,562

1,540

1,534

-6

(3.6%)(3.9%)(3.6%)

-0.4%

111
124

109
120

107
130

-2
+10-1.7%+8.4%(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
1EURFURUNO 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(Unit: 100 Millions of Yen)

500

MarineBusiness-36.6
Industrial
Business-8.7

450MarineBusiness+45.9

Other
Business-0.6

Industrial
Business+2.4

400

350

430

Wireless LAN
Systems+8.3

Wireless LAN
Systems-9.7

Other
Business+0.1

431

393

300

FY 2019
2nd Quarter

Sales-37.6

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020
2nd Quarter

Sales+38.6

FY 2021
2nd Quarter

4

Analysis of Increase/Decrease in Gross Profit on Sales
Increase in Gross Profit on Sales with improvement of profitability for Marine Business(Unit: 100 Millions of Yen)

200180Marine Business
Net Sales
Decrease

-14.2
160

MarineBusiness
Net Sales
Increase

Wireless
LAN Systems
Net Sales
Increase

156+0.8

OthersMarineBusiness
Improvementof Profitability-0.3+11.8

140

120

Others-0.4+17.0+5.6

Industrial Business
Net Sales
Decrease

Industrial Business
Inventory-RelatedExpenses Increase, etc.

Wireless
LAN Systems
Net Sales
Decrease

-5.6

169

146-1.0100

FY 2019
2nd Quarter

Gross Profit on Sales-10.0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020
2nd Quarter

Gross Profit on Sales+23.7

FY 2021
2nd Quarter
5Analysis of Increase/Decrease in Operating Profit
Increase in Operating Income with Increase in Gross Profit on Sales for Marine Business(Unit: 100 Millions of Yen)

Industrial Business

50

Increase inExpenses, etc.

-2.4
40

Others-2.9

Marine Business

MarineBusiness

Gross Profit
on Sales Decrease

30

-14.2

Industrial Business
Gross Profit
on Sales Decrease, etc.

Others
-2.3-6.5

Wireless
LAN Systems
Gross Profit
on Sales Decrease, etc.

-0.62010

Increase inExpenses-4.623

Wireless
LAN Systems
Gross Profit

Marine Business on Sales Increase, etc.
Decrease in Expenses+4.1+6.70

FY 2019
2nd Quarter

Operating Profit-6.3

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

17

Marine Business
Gross Profit
on Sales Increase

29+28.8

FY 2020
2nd Quarter

Operating Profit+12.3

FY 2021
2nd Quarter

6

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

400350

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

15300

98

138691

82

Marine Business:Net Sales 358 100M yen (+14.7% year-over-year)
Segment Profit 27.0 100M yen (+21.3 100M yen)Strong Retrofit demand, stability in demand inFishery market, and strong sales for Pleasure Boats
Increase in Profit with improvement of profitability

Japan: Net sales 103 100M yen (+1.3%)

77250

200

21

“100M” stands for 100 Million

105

 Sales helped by projects eligible for businesssubsidy from Ministry of Agriculture, Forestryand Fisheries

Americas: Net sales 43 100M yen (+10.0%)

150403943100

 Continuous strong sales for Pleasure Boats
since last fiscal year

Europe: Net sales 105 100M yen (+28.7%)
50105

102

103

FY 2019
2nd QuarterFY 2020
2nd Quarter

FY 2021
2nd Quarter0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

 Sales for Merchant Vessels and Pleasure Boats
higher than before COVID-19

Asia: Net sales 86 100M yen (+12.2%)
 Merchant Vessels market still in recovery, but
significant increase in sales for Fishery market

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

908070■PNT ■Healthcare ■Other Industrial■Wireless LAN Systems

30Net Sales 52 100M yen (+4.9% year-over-year)
Segment Profit -1.4 100M yen (-2.4 100M yen)2089406106103020

Industrial Business:

226050“100M” stands for 100 Million

413336PNT Business: Sales increase for on-board ETC
and GNSS Oscillator, implementation started forVehicle Access Control Service
Healthcare: Sales decrease for Chemistry
Analyzer, but sales increase for Reagent andBone Densitometer

PNT Business: Net sales 36 100M yen (+9.8%)
Healthcare: Net sales 10 100M yen (-2.6%)

Wireless LAN Systems:
Net Sales 20 100M yen (-32.8% year-over-year)
Segment Profit 4.8 100M yen (-4.7 100M yen)100FY 2019
2nd Quarter

FY 2020
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2021
2nd Quarter

Wireless LAN Access Point: end of special
demand for GIGA School8Consolidated Financial Results Forecast for FY 2021
Upward revision of forecast, with improvement of profitability
in Marine Business outweighing loss of special demand for GIGA School
FY 2019
Results

FY 2020
Results

Net sales

83,06682,25584,00085,000Operating profit

2,411

3,740

2,500

4,000

(2.9%)(4.5%)(3.0%)(4.7%)

2,702

4,779

3,000

4,500

(Sales ratio)(3.3%)(5.8%)(3.6%)(5.3%)

Profit attributable toowners of parent

2,041

3,946

2,500

4,000

(Sales ratio)(2.5%)(4.8%)(3.0%)(4.7%)(Unit: Millions of yen)

(Sales ratio)

Ordinary profit

FY 2021

FY 2021

Previous Forecast Revised Forecast

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

Full Year

Payout Ratio

FY 202110304031.9%

FY 2022 Previous Forecast

10152531.5%

FY 2022 Revised Forecast

20204031.5%(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: Consolidated Balance Sheet
Increase of “Cash and deposits”. Increase of “Tangible fixed assets” with construction of new R&D Building(Unit: Millions of yen)

FY 2020

FY 2021 YoY (amount)

YoY (ratio)

Current assets

60,77063,537+2,767+4.6%(Cash and deposits)(Inventories)(15,301)(24,028)(18,701)(23,656)(+3,399)(-372)(+22.2%)(-1.6%)

Fixed assets

21,47822,647+1,169+5.4%(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(11,184)(4,645)(5,648)(12,109)(4,505)(6,031)(+925)(-139)(+383)(+8.3%)(-3.0%)(+6.8%)

Total assets

82,24886,185+3,936+4.8%

Current liabilities
Long-term liabilities

22,93013,62623,123
13,922

+193
+296

+0.8%
+2.2%

Total liabilities

36,55637,045

+489

+1.3%

Shareholders’ equity
OthersNon-controlling interests

48,333-2,973332

50,250-1,452341+1,917+1,521+8+4.0%+51.1%+2.5%

Total net assets

45,692

49,139+3,446+7.5%

Total liabilities and net assets

82,24886,185+3,936+4.8%

Equity ratio

55.1%

56.6%

+1.5P

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

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, 2021

Nishinomiya Headquarter

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 2,978 (consolidated)

New R&D Building(finished on September, 2021)
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Consolidated Sales¥82,255 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/
12Appendix: FURUNO’s Business Fields

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

GPS/GNSS
Displacement Continuous
Remote Monitoring
SystemMeteorologicalMonitoring 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

13

Appendix: FURUNO’s Marine Business
For Merchant Vessels

ECDIS(Electronic Chart Displayand Information System)

Radar

Satellite Communications
Equipment

For Fishing VesselsSonar

Fish Finder

Radar

Multi-Function Display

Current IndicatorRadiotelephone

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

GPS/WAAS
Chart PlotterAutopilot
14Appendix: FURUNO’s Industrial Business
PNT

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 only15