Fiscal Year 2023 (Ended February 29, 2024)

Financial Results Briefing Materials
April 15, 2024

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 2023◆Net Sales: Increase➢ Increase in sales in all regions for Marine business with continued
increase in production to catch-up high backlog and normalizedelivery dates◆Operating Profit: Increase➢ Gross profit increased with efforts to increase sales, improve
production efficiency and price management, etc.
➢ Continued investment for growth to strengthen sales and service
structure* Foreign Exchange Sensitivity (actual results for FY 2023)[USD] Net sales: 120M yen, Operating income: 40M yen[EUR] Net sales: 180M yen, Operation income: 60M yen
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2Consolidated Income Statement
Increase in sales in all regions for Marine businessNet sales and net profit have reached the highest-ever level
Fiscal Year 2022

Fiscal Year 2023

91,32534,377

114,850
42,594(37.6%)(37.1%)

32,85336,075(36.0%)(31.4%)

1,523

6,519

(1.7%)(5.7%)

2,593

8,169

(2.8%)(7.1%)

1,348

6,238

(1.5%)(5.4%)

5,694

5,987

(6.2%)(5.2%)

2,207

3,350

(Sales ratio)(2.4%)(2.9%)

Depreciation expenses

3,061

3,413

(Sales ratio)(Unit: Yen, annual average exchange rate)(3.4%)(3.0%)

129
138

140
152

(Unit: 100 Millions of Yen)

Net sales
Gross profit(Sales ratio)

SG&A expenses(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)

Profit attributableto owners of parent(Sales ratio)

R&D expenses(Sales ratio)

Capital investment

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

Year-over-Year Year-over-Year(amount)(ratio)+23,525+25.8%+8,217+23.9%+3,221+9.8%+4,995+327.8%+5,576+215.0%+4,890+362.8%+293+5.2%+1,143+51.8%+351+11.5%+11+14+8.5%+10.4%
3

Analysis of Increase/Decrease in Net Sales
Increase in sales in all regions for Marine business mainly in merchant vessels
Increase in sales for Industrial Business in Defense Equipment
1,300
1,250
1,200

Asia
+52.3

1,150

Other
regions+15.8

Europe+64.4

1,100

1,050

Japan
+32.5

1,000

Foreign
Exchange
Impact+44.4(Unit: 100 Millions of Yen)

IndustrialBusiness+17.1

Wireless

OtherLAN Systems BusinessAmericas+14.9-6.0-0.2

950
900

1149

913
850

Marine Business+224.4800
750700Net Sales
FY2022FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+235.3

FY20234Analysis of Increase/Decrease in Gross Profit
Increase in gross profit with increase in sales for Marine businessand components cost increase compensated by improved profitability
480

450

Sales
Increase
+62.6

420

Improved
Production
Capacity

PriceManagement,
etc.

+27.5+2.7+11.0+4.0

Improved
profitability

390

Foreign
Exchange
Impact(Unit: 100 Millions of Yen)

IndustrialBusiness
Sales
Increase+15.0

Components
Cost Increase-14.2

WirelessLAN Systems
Sales Decrease,etc.

Others-5.7-5.7

360330344426
Marine Business+90.9300

FY2022FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit+82.2

FY20235Analysis of Increase/Decrease in Operating Profit
Significant Increase in profit with higher gross profit in Marine business,despite increase in SG&A expenses with strengthening of sales and service structure
150130Marine Business
Gross Profit
Increase

120+90.9140(Unit: 100 Millions of Yen)

Industrial Business
Gross Profit Increase+2.7

110
10090

Wireless
LAN Systems
Gross Profit
Decrease Expense Increase
with Personnel-5.7
Increase, etc.

80706050-22.74030

Foreign
ExchangeImpact onSG&A-12.3

2010R&D
Expenses
Increase-2.915650

FY2022FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Operating Profit+50.0

FY2023
6Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)

日本

米州

欧州

アジア

その他

“100M” stands for 100 Million

Marine Business
Net Sales 982 100M yen (+29.6% year-over-year)
Segment Profit 71.0 100M yen (+58.5 100M yen)
⚫

1,000

69
900

800

242

700

42600

168

53400

321
209

200
100

12491

99

195

193226FY2021

FY2022

FY20230FURUNO ELECTRIC CO., LTD. All Rights Reserved.

◆Americas: Net sales 124 100M yen (+25.7%)➢ Increase in sales for Pleasure boats and Fisherymarket

230

300

◆Japan: Net sales 226 100M yen (+16.8%)➢ Steady sales for Merchant newbuild projects➢ Improvement in sales for Fishery market

182

500

⚫
⚫

Increase in production to catch-up high backlog andnormalize delivery dates
Price management, etc., and yen depreciation
Continued selection of projects based on profitability◆Europe: Net sales 321 100M yen (+39.3%)➢ Expansion in sales for Merchant, Fisheryand Pleasure boats➢ High demand for retrofit and steady increase insales of maintenance services◆Asia: Net sales 242 100M yen (+33.1%)➢ Steady sales for Merchant newbuild projects

7

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

180

■OEM, ETC, etc.
■Healthcare■Defense Equipment ■Wireless LAN Systems“100M” stands for 100 Million

Industrial Business
Net Sales 128 100M yen (+15.4% year-over-year)
Segment Profit +2.4 100M yen (+1.2 100M yen)⚫

Increase in sales and profit for each sector ofIndustrial business

160
140120

36100

1880

2136

◆OEM, ETC, etc.: Net sales 65 100M yen (+6.5%)

35◆Healthcare: Net sales 29 100M yen (+12.9%)➢ Increase in sales for OEM products➢ Increase in sales for ETC and GNSS products

42➢ Increase in sales for clinical chemistry analyzers

2325

29

◆Defense Equipment: Net sales 35 100M yen (+52.2%)➢ Increase in sales and development project withincrease in defense budget of Japan

60
4068

62

65

20

Wireless LAN Systems
Net Sales 36 100M yen (-14.4% year-over-year)
Segment Profit 1.3 100M yen (-3.8 100M yen)

0FY2021

FY2022FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY2023⚫

Decrease in sales for wireless LAN access pointin the education market
8Appendix: Consolidated Balance Sheet
Fiscal year 2022

Fiscal year 2023

Current assets

82,28086,285(Cash and deposits)(Inventories)(15,376)(40,694)(11,786)(46,088)

Fixed assets

24,11628,085(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,914)(4,034)(6,167)(14,751)(4,902)(8,432)

Total assets
Current liabilities
Long-term liabilities
Total liabilities

106,396
37,525
16,36853,893

114,370
39,385
13,55052,935

Shareholders’ equityOthers
Non-controlling interests

50,023
2,089
389

55,184
5,856
393

52,503
106,396

61,434
114,370

49.0%

53.4%

(Unit: Millions of yen)

Total net assets
Total liabilities and net assets

Equity ratio
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Forecast for Fiscal Year 2024
Continued high demand/ Sales maintained at 110B yen
Increase in SG&A expenses with increase in personal expenses
Significant increase in corporate income tax adjustment with tax effect accounting (first half, 1.52.0B yen)
Fiscal Year 2023

Fiscal Year 2024

114,850
6,519

110,000
5,500(5.7%)(5.0%)

8,169

6,500

(Sales ratio)(7.1%)(5.9%)

Profit attributable toowners of parent

6,238

3,500

(Sales ratio)(5.4%)(3.2%)

5,987

6,600

(5.2%)(6.0%)

3,350

4,500

(2.9%)(4.1%)

3,413

3,500

(3.0%)(3.2%)

140
152

135
145

(Unit: Millions of yen)

Net sales
Operating profit(Sales ratio)

Ordinary profit

R&D expenses(Sales ratio)

Capital investment(Sales ratio)

Depreciation
expenses(Sales ratio)

Year-over-Year(amount)

Year-overYear(ratio)-4,850-4.2%-1,019-15.6%-1,669-20.4%-2,738-43.9%+612+10.2%+1,150+34.3%+87+2.5%-5-7-3.8%-4.8%(Unit: Yen, annual average exchange rate)

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

10

Dividend of Retained Earnings: Forecast for FY 2024
Dividend Forecast based on 30% Payout Ratio policy(Unit: Yen)

2nd Quarter End of Term

Full Year

Payout ratio

FY 202210152558.5%

FY 202320406030.4%

FY 2024 Forecast

10253531.6%FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

Forecast: Marine Business“100M” stands for 100 Million

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

日本
1,000
900

Move to FY2023
due to the lackof components

800
700
600

欧州

アジア

その他

6967
242
225

53

Segment Profit 50.0 100M yen⚫ Increase in sales in FY2023 due to theimprovement in lack of components from FY2022⚫ Continued high demand for FY2024⚫ Less impact of components cost Increase◆Japan: Net sales 218 100M

182

➢ Steady sales for Merchant newbuild projects

321

500
400

米州

Marine BusinessNet Sales 913 100M

290

◆Americas: Net sales 114 100M yen

230➢ Steady sales for large Pleasure boats
300

12499114◆Europe: Net sales 290 100M yen

200

100

193

226

218

FY2022

FY2023

FY20240FURUNO ELECTRIC CO., LTD. All Rights Reserved.

➢ Steady sales for Merchant retrofit demands◆Asia: Net sales 225 100M yen➢ Steady sales for Merchant newbuild projects in China
and Korea

12Forecast: Industrial BusinessIndustrial Business Consolidated Sales(by Product)(Unit: 100 Millions of Yen)220

■ITS, GNSS
■Healthcare■Defense Equipment ■Wireless LAN Systems

200“100M” stands for 100 Million

Industrial Business
Net Sales 147 100M yen
Segment Profit 3.0 100M yen◆ITS, GNSS: Net sales 77 100M yen➢ Increase in sales for GNSS products

18040160

3814042➢ Increase in sales for clinical chemistry analyzers
35120◆Defense Equipment: Net sales 35 100M

35100802325622965

77

Wireless LAN Systems
Net Sales 40 100M yen
Segment Profit 2.0 100M yen

200➢ Steady sales and development projects

356040◆Healthcare: Net sales 35 100M yen⚫
FY2022

FY2023

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY2024

Improvement in sales for wireless LAN access pointin the education market
13Topics

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

14

Topics
FURUNO has received approval from LiMAto use HermAce as a tool for remote VDR APT
HermAce which was developed by FURUNO uses a Digital Twin (a virtual replica) of bridge equipment based on data streamed
directly from the vessel that offers live identification and diagnosis of problems.
Each year a Voyage Data Recorder (VDR) requires an Annual Performance Test (APT) by a qualified engineer, who must visit thevessel to check the operation and record of voyage information. However, for vessels equipped with HermAce, VDR data can beextracted remotely. Herewith, cost saving is expected to be achieved by reducing the time for prearrangement and that engineers
have to spend for ship visits.

We have received approval from the Liberia Maritime Authority (LiMA) to use its remote monitoring and troubleshooting
platform HermAce as an alternative for the onboard APT of the VDR. HermAce previously obtained certifications for MarshallIslands and Panama-flagged vessels under ClassNK. Now, the APT of the VDR can be conducted remotely for Liberia-flaggedvessels.
Also, by using HermAce, it is possible to obtain in real-time all the detailed information remotely. Potential failures can bedetected and notified immediately, pursuing the idea of preventive and proactive maintenance for the safety and peace of mind ofthe navigation.
For more details about HermAce:
https://www.furuno.com/en/merchant/hermace/
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

15

Topics
New application for AI fish weight estimation system
We have developed new application “Aqua Scope” which integrates and displays necessary data to support
fish farming operations.
AI fish weight estimation system can grasp the growthof fish by data from AI fish weight estimation camera“UC-300/600” inside a cage. Until now, fish farming
has been done mainly based on experience and feeling.
However, utilizing data is required to do fish farming
efficiently due to rise in the price of fish meal, etc. now.
The customers who use AI fish weight estimation system
can use “Aqua Scope” for free and watch fish weight/length, etc. from the application by user friendly andsimple operation.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16Topics”Sea to the future” project

FURUNO communicates attractive and problem of sea with children as the company which has been
growing in marine market for a long time.

Talk show and workshop
We communicates attractive of sea
and fish with children in talk show
and workshop in Nishinomiya citywith Kawachan, Fish Aficionado.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

SupoGOMI world cup in Hyogo

Job experience program

Our two teams joined this cleanup
event. We will try to solve theproblem of sea with regional
people/children aggressively.

Job experience program “Sea andJapan project” is provided by The
Nippon Foundation. We cooperate
this project to communicate
importance of sea with children.

17Topics
Certified for 6 consecutive years as a “Health andProductivity Management Organization (White 500)”
The "Excellent Corporation for Health Management System" is a system to recognize large corporations, small
and medium-sized companies, and other corporations that practice particularly excellent health management basedon initiatives that address local health issues and promote health as promoted by the Japan Health Council. Amongthe corporations certified as "Excellent Corporations for Health Management (Large Corporation Category),
only the top 500 corporations in the results of the health management survey are recognized as "White 500".
Based on our management philosophy, we have been promoting

efforts to raise employees' health awareness and create aworkplace environment where they can continue to work withpeace of mind, so that each one of our employees can workwith a cheerful and active mind and body. In recognition of these
health management efforts, FURUNO has been recognized
as a “Health and Productivity Management Organization(White 500)” for six consecutive years since the fiscal year
2019 in the large corporation category.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

18

Topics
Advertisement on trains and stations in Hanshin Railway
Our corporate advertisement series “We Want You toKnow FURUNO” to promote our attractiveness and familiarity
The advertisements including new version are displayed on
media in the Hanshin Railway facilities which connect Hyogo and Osaka.
It has been started from January 2024 and can be found at Hanshin Nishinomiya station(the nearest station from our head office) and other stations between Osaka Umeda and Sanyo Himeji.

Sticker above train doors

Kobe Sannomiya station*

Hanshin Umeda station**for illustration purposes only

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

19

Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

20

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 29, 2024

Nishinomiya Headquarter

New 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

3,356 (consolidated)

Consolidated Sales¥114,850 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/21

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 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

ClinicalChemistryAnalyzer

ETC22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

Autopilot
23

Appendix: FURUNO’s Industrial Business
ITS, GNSS

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 only24