1st Quarter of Fiscal Year 2023 (Ending February 28, 2024)

Financial Results Briefing Materials
July 14, 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 1st Quarter of FY 2023
◆Net Sales: Increase➢ Increase in overseas sales for Marine Business helped byforeign exchange impact and improved components availability➢ Continued strong demand since previous fiscal year
◆Operating Profit: Increase➢ Increase in profit due to sales increase in Marine Business◆Financial Results Forecast: Upward Revision➢ Strong sales overseas, with less than expected impact ofcomponents price increase, also greater than expected impact offoreign exchange* 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
Increased operating profit with increased gross profit due to increase in sales for Marine Business(Unit: Millions of yen)

FY 2022
1 Quarter

FY 2023
1 QuarterYear-over-Year(amount)

Year-over-Year(ratio)21,20523,852+2,646+12.5%

8,140

9,970

(38.4%)(41.8%)+1,829+22.5%+588+7.4%+1,240+578.6%+1,166+189.6%+655+134.8%+128+10.1%-210-24.2%-117-14.1%stNet 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)

Depreciation Expenses

st

7,926

8,515

(37.4%)(35.7%)

214

1,455

(1.0%)(6.1%)

615

1,781(2.9%)(7.5%)

486

1,141(2.3%)(4.8%)

1,271

1,400

(6.0%)(5.9%)

866

656(4.1%)(2.8%)

834717(3.9%)(3.0%)

1 USD

115

135+20+17.1%

1 EUR

131

143

+12+9.2%(Sales ratio)(Unit: Yen, annual average exchange rate)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales
Decrease in local sales, but increase in overseas sales for Marine Business, helped by forex
255(Unit: 100 Millions of Yen)

Industrial Business+0.5

Marine Business+27.5

OtherBusiness-0.1

240

Asia+17.2
225

Japan
Foreign
ExchangeImpact

Europe+11.4-16.9210

Americas+0.2
195

WirelessLAN Systems-1.5

OtherRegions+2.3

+13.3

212

180239Net Sales
FY 2022
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+26.5

FY 2023
1st Quarter

4

Analysis of Increase/Decrease in Gross Profit
Increase in overseas sales for Marine Business sales, with fewer components price increase
105(Unit: 100 Millions of Yen)
10095

Components
Price Increase90-3.1
Foreign
Exchange
Impact+9.085

ProductMix, etc.
+4.7

Sales
Increase+0.1

Increase inOthers
manufacturing WirelessLANSystems
costs for Defense-0.4
Sales
Equipment
Decrease, etc.
-1.4-1.5Industrial Business-1.3

807581

Sales Increase
+10.9

100
Marine Business+21.5706560

Gross Profit
FY 2022
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+18.3

FY 2023
1st Quarter

5Analysis of Increase/Decrease in Operating Profit
Gross profit increase for Marine business, strengthened sales and service, continuous R&D
32

Marine Business
Gross Profit
Increase+21.5

24

Wireless
LAN Systems
Gross Profit
Decrease-1.5(Unit: 100 Millions of Yen)

R&D Expenses
Increase-1.3
Industrial Business
Gross Profit
Decrease-1.3

16Expense Increase
with Personnel
Increase, etc.

-2.0-3.080Foreign Exchange
Impact on SG&A

2FY 2022
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Operating Profit+12.415
FY 2023
1st Quarter

6

Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)240

日本 ■Americas
米州
欧州
その他
■Japan■Europeアジア■Asia ■Other200

160158124136545771

245554370

FY 2021
1st Quarter

FY 2022
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

⚫
⚫

Continued strong demand, especially overseas
Forex impact and improved components availability➢ Steady sales for Merchant newbuild projects➢ Backlash from large projects in Fishery market,
but as expected➢ High level of sales maintained for pleasure boats◆Europe: Net sales 71 100M yen (+30.8%)2040

Segment Profit 18.7 100M yen (+13.2 100M yen)◆Americas: Net sales 24 100M yen (+21.5%)80

20Marine Business
Net Sales 204 100M yen (+15.6% year-over-year)◆Japan: Net sales 37 100M yen (-31.5%)

120

49

“100M” stands for 100 Million

FY 2023
1st Quarter➢ Increase in sales for service➢ Expansion in sales for Merchant, Fisheryand Pleasure boats◆Asia: Net sales 57 100M yen (+58.7%)➢ Steady sales for Merchant newbuild projects

7

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

40

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

35
30

1125

85

635

Industrial Business
Net Sales 28 100M yen (+2.0% year-over-year)
Segment Profit -1.4 100M yen (-1.7 100M yen)⚫
⚫

Defense Equipment: Increase in manufacturing costs
Healthcare: Increase in R&D expenses◆OEM, ETC, etc.: Net sales 16 100M yen (-6.0%)➢ Decrease in sales for OEM and GNSS products➢ Increase in sales for ETC on-board units

7320“100M” stands for 100 Million◆Healthcare: Net sales 5 100M yen (-1.7%)➢ Weak sales for clinical chemistry analyzers
due to lack of components

515◆Defense Equipment: Net sales 7 100M yen (+35.2%)
101717165

Wireless LAN Systems
Net Sales 6 100M yen (-18.5% year-over-year)
Segment Profit -2.0 100M yen (-2.0 100M yen)

0FY 2021
1st Quarter

FY 2022
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2023
1st Quarter⚫

Decrease in sales for wireless LAN access pointin the education market
8Forecast for FY 2023: Upward Revision
Strong sales overseas, with less than expected impact of components priceincrease, also greater than expected impact of foreign exchange
FY 2022

FY 2023

FY 2023

Results

Previous Forecast

Revised Forecast

Net Sales

91,32597,000100,000

Operating Profit

1,523

2,000

3,000

(1.7%)(2.1%)(3.0%)

2,593

2,500

4,000

(Sales ratio)(2.8%)(2.6%)(4.0%)

Profit Attributableto Owners of Parent

1,348

2,000

2,500

(Sales ratio)(1.5%)(2.1%)(2.5%)(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

10102031.6%

FY 2023 Revised Forecast

101525

31.6%(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: Consolidated Balance Sheet
Full Year FY 2022

1st Quarter FY 2023

Current assets

82,28082,065(Cash and deposits)(Inventories)(15,376)(40,694)(12,283)(43,521)

Fixed assets

24,11623,939(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,914)(4,034)(6,167)(14,001)(3,990)(5,947)

Total assets

106,396

106,005

Current liabilities
Long-term liabilities

37,525
16,36837,233
15,375

Total liabilities

53,89352,608

Shareholders’ equity
OthersNon-controlling interests

50,0232,089
389

50,691
2,365
339

Total net assets

52,50353,396

Total liabilities and net assets

106,396

106,005

Equity ratio

49.0%

50.1%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Topics

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

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.

12

FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

13

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/
14

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
SystemUltrasoundBoneDensitometer

ClinicalChemistry
Analyzer

ETC15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
16

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 DensitometerWireless LAN Systems

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

Wireless Handheld Terminal**Japanese market only17