1st Quarter of Fiscal Year 2021 (Ending February 28, 2022)

Financial Results Briefing Materials
July 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.
*** “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 2021

 Net Sales: Increase Demand in Marine Business recovered in all regions of the world.
Demand for equipment for Pleasure Boats increased further fromlevel before COVID-19.
 Sales for wireless LAN access points for education in the Wireless LAN
Business continued until March.

 Profit: Increase Increase in Profit thanks to Increase in Net Sales for Marine Businessand Wireless LAN Business.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Increase in Net Sales and Profit, recovering from COVID-19 impact. Continuous investments for future growth.
(Unit: Millions of yen)

FY 2019
1st Quarter

FY 2020
1st Quarter

FY 2021
1st Quarter

Year-over-Year(amount)

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

20,652
7,611

18,143
6,418

20,837+2,694+14.9%

8,110+1,691(36.9%)(35.4%)(38.9%)+26.4%

779

2

1,209

+1,207(3.8%)(0.0%)(5.8%)

-874

2

1,412

+1,410(Sales ratio)(4.2%)(0.0%)(6.8%)-Profit attributable to ownersof parent

89762

1,038+976-(Sales ratio)(4.3%)(0.3%)(5.0%)

1,230

1,103

1,232+129(Sales ratio)(6.0%)(6.1%)(5.9%)+11.7%

Capital investment expenses

468

877

1,466+589(Sales ratio)(2.3%)(4.8%)(7.0%)+67.2%

779

766

763

-2

(3.8%)(4.2%)(3.7%)

-0.3%

111
126

109
121105128-4+7-4.5%+6.1%(Sales ratio)

Operating income(Sales ratio)

Ordinary income

R&D expenses

Depreciation expenses(Sales ratio)(Unit: Yen, annual average exchange rate)

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

3

Analysis of Increase/Decrease in Net Sales(Unit: 100 Millions of Yen)
240

220

EuropeJapan Americas +6.1+1.3+5.4

200

OtherRegions
Asia+1.4+6.4

ForeignExchange
Impact180

160

PNT+0.8

Others+0.0

Other
Business+0.2

Healthcare-1.7+1.5

181

140

Marine BusinessIndustrial Business+22.1-0.9

FY 2020
1st Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Wireless
LAN Systems+5.6
FY 2021
1st Quarter

Sales+26.9

208*Foreign exchange sensitivity (actual results as of February 28, 2021)[USD] Net Sales 1.0 100M yen, Operating Income 0.3 100M yen[EUR] Net Sales 1.3 100M yen, Operating Income 0.6 100M yen

4

Analysis of Increase/Decrease in Gross Profit on Sales
Significant increase in Gross Profit on Sales for Marine Business,recovering from COVID-19 impact.
(Unit: 100 Millions of Yen)

100Net Sales
Increase+8.180Inventory-RelatedExpenses Decrease+1.9

Foreign
Exchange
Impact+1.3

6064

Sales Increase forPleasure Boat, etc.

FY 2020
1st Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Inventory-RelatedExpenses Increase+1.6

Marine Business+12.940Net Sales
Increase+2.5

Net SalesDecrease-0.7

Others

+1.0Others+0.7

Sales Increase forGIGA School+1.3-0.8

Industrial Business Wireless LAN Systems▲1.5

Gross Profit on Sales

16.9+81+4.8
FY 2021
1st Quarter
5Analysis of Increase/Decrease in Operating Income
Significant increase in Operating income thanks to increase in Gross profit
on Sales for Marine Business.
(Unit: 100 Millions of Yen)

20

Marine BusinessIndustrial Business▲1.7+9.6+4.5

Gross Profit
on Sales Increase

16+12.9

Gross Profit
on Sales Increase
Gross Profit onSales Decrease▲0.3▲1.5

Increase inExpenses*▲0.0

R&D Expenses
Increase▲2.5

Increase inExpenses*+4.8

Increase inExpenses*

128

Wireless LAN Systems▲0.3Others▲0.3

R&D Expenses
Decrease+0.0
Foreign Exchange
Impact on SG&AExpenses▲0.54R&D Expenses
Increase

▲0.2

1200

FY 2020
1st Quarter

FY 2021
1st Quarter

Operating Income*: Not including R&D Expenses
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+12.1*Foreign exchange sensitivity (actual results as of February 28, 2021)[USD] Net Sales 1.0 100M yen, Operating Income 0.3 100M yen[EUR] Net Sales 1.3 100M yen, Operating Income 0.6 100M yen

6

Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)200

日本 ■Americas
米州
欧州
その他
■Japan■Europeアジア■Asia ■Other180
160
140

46

45

80
60

641

4149



Increase in both Sales and Profit with recovery inRetrofit demand, continuous stability in demand forFishery market and strong sales for Pleasure Boats Mostly recovered to level before COVID-19
with projects eligible for business subsidy from
Ministry of Agriculture, Forestry and Fisheries

Americas: Net sales 20 100M yen (+4.2%)

1720204020Marine Business:
Net Sales 173 100M yen (+14.7% year-over-year)
Segment Profit 10.1 100M yen (+9.6 100M yen)Japan: Net sales 55 100M yen (+11.0%)

34120
10087

“100M” stands for 100 Million

574955FY 2019
1st Quarter

FY 2020
1st Quarter

FY 2021
1st Quarter0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

 Continuous strong sales for Pleasure Boats
since last fiscal year

Europe: Net sales 49 100M yen (+19.6%)
 Higher level of sales for Merchant Vessels andPleasure Boats, compared to before COVD-19

Asia: Net sales 41 100M yen (+18.6%)
 Merchant Vessels market still in the recovery, but
significant increase in sales for Fishery market

7Overview of Industrial BusinessIndustrial Business Consolidated Sales(by Product)(Unit: 100 Millions of Yen)40

■PNT ■Healthcare ■Other Industrial■Wireless LAN Systems“100M” stands for 100 Million

Industrial Business:
Net Sales 23 100M yen (-3.6% year-over-year)
Segment Profit -1.1 100M yen (-1.6 100M yen)
35

30

625

36532051133



PNT Business: Demand in on-board ETC
recovering to level before COVID-19Healthcare: Decrease in sales in Europe
Profit ratio decline due to change in sales
composition, among others

PNT Business: Net sales 17 100M yen (+5.3%)

Healthcare: Net sales 3 100M yen (-34.1%)

15102016175

Wireless LAN Systems:
Net Sales 11 100M yen (+94.4% year-over-year)
Segment Profit 3.5 100M yen (+4.5 100M yen)
0FY 2019
1st Quarter

FY 2020
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2021
1st Quarter

Solid sales for Handheld Terminal, sales for
wireless LAN access points for education in thecontinued until March
Significant increase in net sales and profit
8Consolidated Financial Results Forecast for FY 2021
Sales decrease for Wireless LAN Systems, but recovery in Marine Business, sales increasefor Industrial Business and effect of Major Measures, resulting in growth in sales forecast
FY 2019
Results

FY 2020
Results

FY 2021
Forecast

Net sales

83,06682,25584,000Operating income

2,411

3,740

2,500

(Sales ratio)(2.9%)(4.5%)(3.0%)

2702

4,779

3,000

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

Profit attributable toowners of parent2,041

3,946

2,500

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

Ordinary income

Dividend forecast unchanged, Payout Ratio over 30% expected
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202110304031.9%

FY 2022101525

31.5%(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: Consolidated Balance Sheet
Increase of “Cash or equivalents”. Increase of “Tangible fixed assets” with new R&D Work Space Construction.
(Unit: Millions of yen)

FY 2020

FY 2021 YoY (amount)

YoY (ratio)

Current assets

60,77063,614+2,844+4.7%(Cash or equivalents)(Inventories)(15,301)(24,028)(19,398)(24,145)(+4,096)(+116)(+26.8%)(+0.5%)

Fixed assets

21,47822,614+1,135+5.3%(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(11,148)(4,645)(5,648)(12,210)(4,589)(5,814)(+1,026)(-56)(+165)(+9.2%)(-1.2%)(+2.9%)

Total Assets

82,24886,228+3,980+4.8%

Current liabilities
Long-term liabilities

22,93013,62625,485
13,857+2,555+231+11.1%+1.7%

Total Liabilities

36,55639,343+2,786+7.6%

Shareholders’ equity
OthersNon-controlling interests

48,333-2,973
332

48,425-1,869329+92+1,104-3+0.2%+37.1%-1.0%

Total Equity

45,692

46,885+1,193+2.6%

Total Liabilities and Equity

82,24886,228+3,980+4.8%

Equity Ratio

55.1%

54.0%

-1.1P

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

Appendix: Corporate OutlineSince 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

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

12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 PointRadar
Voyage Data
Recorder(VDR)

GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasound
BoneDensitometer

ClinicalChemistry
Analyzer

ETC13

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
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