FURUKAWA CO., LTD.
Financial Results Briefing for the Second Quarter Ended September 30, 2022
November 25, 2022

[Number of Speakers]

3
Minoru Nakatogawa
Hiroyuki Sakai
Ryohei Akutagawa

President and Representative Director
Managing Director
PR & IR Manager, Corporate Planning
Department

Nakatogawa: Hello, everyone. I’m Nakatogawa, President of FURUKAWA CO., LTD. Thank you for taking timeout of your busy schedule to attend our financial results briefing today.
Since our founding in 1875, we have undergone significant changes and are now focused on our corebusinesses of machinery and materials, and we are working to enhance our investor relations to better inform
our investors.
As same as in the previous session, this briefing will be streamed live online.

Today, as you can see, I will explain in the order of one to six.

Before explaining our financial results, I would like to explain our value creation process.
Based on the management philosophy described herein, the Group has evolved and developed our coppermine development technology into a variety of technologies, with machinery and materials at the core of ourbusiness.
Among these, we have positioned the machinery business as our core businesses. And now, throughmarketing management that incorporates a CSV perspective, we aim to create corporate value and social
value and continue to be a company that is needed by society.
Among the materiality (key issues) that will be explained later, we have identified three materiality issues
related to solving social issues through our business, circled in red in this diagram, and we will contribute to
the creation of social value through them.

This is the summary of financial results for Q2 of the fiscal year ending March 2023 and forecast for the fiscal
year ending March 2023.
The YoY changes for Q2 of the fiscal year ending March 2023 are a JPY6.7 billion increase in net sales to
JPY104.5 billion, a JPY0.1 billion decrease in operating profit to JPY3.3 billion, and a JPY1.1 billion increase inordinary profit to JPY5.2 billion as a result of JPY2.1 billion in foreign exchange gains and other items recorded
under non-operating income. Profit attributable to owners of parent increased by JPY1.1 billion YoY to JPY3.4
billion.
The financial situation is as shown.
The forecast for the fiscal year ending March 2023 remains unchanged from the forecast announced on
August 9, 2023, with no change in the total amount of net sales and operating profit, although the segment
figures have been revised, and the YoY changes are expected to be a JPY10.4 billion increase in net sales to
JPY209.5 billion and a JPY0.7 billion decrease in operating profit to JPY7 billion.
Although foreign exchange gains are expected, the forecast remains unchanged at JPY6.9 billion for ordinary
profit and JPY4.7 billion for profit attributable to owners of parent due to the unpredictability of foreignexchange fluctuations.

Income statement. Net sales and operating profit will be discussed by segment later.
Ordinary profit increased due to the recording of a foreign exchange gain of JPY2.1 billion from thedepreciation of the yen in non-operating income and the absence of a gain on disposal of disused articles, etc.
recorded in the previous fiscal year.
Gain on sales of investment securities was recorded in extraordinary income. As a result of posting
extraordinary losses including expenses for the progress of demolition of the FURUKAWA Osaka Building andexpenses associated with the settlement of two overseas sales subsidiaries in Panama and China in the Rock
Drill segment, profit attributable to owners of parent increased by JPY1.1 billion to JPY3.4 billion.

Next is the balance sheet.
Total assets increased by JPY15.6 billion to JPY245.3 billion and net assets increased by JPY2.1 billion to
JPY102.2 billion. The main factors are as stated. Interest-bearing debt increased by JPY14.7 billion from theend of the previous fiscal year to JPY80.3 billion but is expected to decrease to JPY61.5 billion by the end of
March 2023.
Consolidated cash flow from operating activities was negative JPY7.1 billion, mainly due to an increase ininventories and a decrease in payables as a result of the concentration of copper ore purchases in H1. In termsof cash flow from financial activities, we raised short-term loans for working capital, resulting in a positive
cash flow of JPY11.7 billion.

Regarding results by segment, sales for Q2 of the fiscal year ending March 2023 decreased in the Industrial
Machinery and UNIC segments but increased mainly in the Rock Drill and Metals segments, resulting in an
overall increase in sales.
The overall machinery business sales increased by JPY1.2 billion to JPY39.9 billion, and the overall materials
business sales increased by JPY4.2 billion to JPY61.9 billion.
Operating profit increased mainly in the Rock Drill segment but decreased in the Industrial Machinery and
UNIC segments, resulting in an overall decrease in operating profit.
The machinery business as a whole saw a decrease in operating profit of JPY0.2 billion to JPY1.8 billion, andthe materials business as a whole saw a slight increase to JPY1.1 billion.
Net sales for the fiscal year ending March 2023 are expected to increase mainly in the Rock Drill and Metals
segments.
Operating profit is expected to increase mainly in the Rock Drill segment but to decrease in the UNIC segment
and the three materials business segments, and overall operating profit is also expected to decrease.
Actual copper prices and exchange rates, as well as assumptions and exchange rate sensitivities, are shown in
the table.

The graph shows changes in earnings by segment.
The left side of the graph shows the YoY change in H1 results, and the right side shows the YoY change in the
full-year forecast. The center of the page also shows the exchange rate for H1 and the exchange rate forecast
for the full year.

I will explain the details by segment. As for the gray references at the bottom of the page, please refer tothem when you have time as they describe the features, destinations, market share, etc. of the main productsof each segment.
Industrial Machinery segment.
As for the YoY changes in H1, net sales decreased by JPY0.8 billion. Sales of pump plants increased but thoseof material machinery decreased, and those of bridges decreased due to differences in the number of
construction projects, amounts, and periods of construction. As for large projects, sales of enclosed hanging
conveyor (SICON), for the construction of the Shin-Kobotoke Tunnel on the Chuo Expressway, etc. wererecorded in line with the progress, but sales decreased with the completion of the construction of materials
handling facilities for Onahama port bulk terminal.
Operating profit decreased by JPY0.3 billion due to the decrease in sales.
Backlog of orders totaled JPY12.7 billion, up JPY3.6 billion YoY. The orders received included the Morigasaki
Water Reclamation Center and others for the fluid equipment, the crusher plant for Nippon Steel Slag
Products and the new quarry plant for Ryukyu Cement and others for the material machinery and theconstruction of Shimizu IC third viaduct and others for the bridges.
Regarding the full-year forecast and YoY changes, net sales increased by JPY0.9 billion, while sales decreasedin material machinery and large projects. Sales are expected to increase in pumps, fluid equipment, bridges,
and environmental products.

In addition, the casting business of this segment was spun off and transferred to a new company on October
3. We expect a decrease in sales in H2 for the casting business as it will be moved to the other segment, but
we forecast an increase in overall sales.
Operating profit is expected to increase by JPY100 million, mainly due to higher sales of pumps andenvironmental products.

Next is the Rock Drill segment.
As for the YoY changes in H1, net sales decreased by JPY0.1 billion in Japan and increased by JPY2.7 billion
overseas. Domestic sales decreased due to lower shipments of tunnel drill jumbos, while overseas sales
increased due to higher shipments, mainly to North America, and the weaker yen also had the effect ofincreasing sales. In addition, shipments of spare parts increased in Japan and North America, resulting in an
overall increase in sales.
Operating profit increased by JPY0.7 billion, mainly due to an increase in shipments overseas, as well as anincrease in sales due to the yen's depreciation.
As for the YoY changes in the full-year forecast, sales are expected to decrease by JPY0.2 billion in Japan andincrease by JPY4.9 billion overseas, with a slight decrease in Japan but an increase in overseas sales mainly
due to increased shipments in North America and the weaker yen.
Operating profit is expected to increase by JPY1.4 billion, mainly due to increased shipments overseas and thepositive effect of the weaker yen.

UNIC segment.
As for the YoY changes in H1, net sales decreased by JPY2 billion in Japan and increased by JPY1.4 billion
overseas. In Japan, sales declined due to delays in crane mounting caused by truck production delays andproduction cutbacks. Overseas, overall sales increased due to increased shipments of mini-crawler cranes in
Europe and the US, and UNIC cranes in Southeast Asia, Oceania and the Middle East, as well as the positiveeffect of the weaker yen on sales.
Operating profit was decreased by JPY0.5 billion, and while overseas profit increased due to increased
shipments and the weaker yen, domestic profit decreased overall due to lower sales and a worsening cost
ratio caused by price hikes of raw materials such as steel products.
As for the YoY changes in the full-year forecast, sales are expected to decrease by JPY1.9 billion in Japan andincrease by JPY1.5 billion overseas, with a gradual recovery in Japan in H2 from the impact of reduced truck
production and other factors, but a decrease in sales in H1 will remain. Overseas sales are expected to increase
due to the remaining increase in H1, but overall sales are expected to decrease.
Operating profit is projected to decrease by JPY1 billion, due to the expected decrease in profit from lower
domestic sales and the impact of raw material price hikes.
Although we are raising product prices to compensate for the cost increase, we expect the backlog of orders
before the price revision to remain in the current fiscal year.

Metals segment.
As for the YoY changes in H1, net sales increased by JPY3.6 billion, with higher unit prices offsetting a decreasein the sales volume of copper. Gold sales increased due to higher volumes and unit prices. Overall, revenues
also increased, and the factors for the increase/decrease are as noted.
Operating profit increased slightly. As shown in the table on the right, net gain/loss from metal pricefluctuations was positive 0.5 billion, with a decrease in profit for copper and an increase in profit for gold. The
weaker yen also contributed to an improvement in the consignment smelting balance.
As for the YoY changes in the full-year forecast, net sales are expected to increase by JPY3.4 billion. Copper
sales are expected to decrease due to lower volume despite higher unit prices. Gold sales are expected toincrease due to higher volume and unit prices. However, future fluctuations in metal prices cannot be
foreseen, so the H2 forecast does not reflect these factors.
Operating profit is expected to decrease by JPY0.4 billion. Although the weaker yen is expected to improvethe balance of consignment smelting, price gains from future exchange rate and even metal price fluctuations
are not expected, so the H2 forecast does not reflect this factor and is set at almost zero.
As we have already disclosed in a timely manner, at the end of March 2023, we have reached a point in time
for a drastic review of the consignment smelting business with the termination of the consignment contract
with Onahama Smelting and Refining Co., Ltd. From FY2023 onward, operating profit will be secured by
reducing unprofitable exports and focusing on domestic sales. Due to the decrease in production volume, we
expect a reduction in the volatility of earnings due to metal price fluctuations.

Based on the assumptions announced at the beginning of the fiscal year, copper price of USD9,400 andexchange rate of JPY120, operating profit in the Metals segment is expected to improve from zero in the initialfull-year forecast to JPY0.4 billion in FY2023 and beyond.
For details, please refer to page 18 of the presentation material for the financial results for the fiscal year
ended March 2022, held in May, later. This estimate does not take into account fluctuations in earnings due
to changes in foreign exchange rates or metal prices.

Electronics segment.
As for the YoY changes in H1, sales remained almost flat, and demand for high-purity metallic arsenic wasstable for use in compound semiconductors. Sales of aluminum nitride increased due to higher demand forthermal management components and semiconductor manufacturing equipment components. Sales of coils
decreased due to the impact of automobile production cutbacks.
Operating profit increased by JPY0.1 billion, with the increase due to higher sales of high-purity metallic
arsenic and aluminum nitride.
As for the full-year forecast, net sales are expected to decrease by JPY300 million, with volume declines inhigh-purity metallic arsenic and crystal products due to lower demand for semiconductors in H2. Sales of coils
are expected to decrease due to lower volume and other factors, reflecting lower automobile production.
Operating profit is expected to decrease by JPY0.4 billion, resulting in an operating loss for the full year due
to the impact of higher electricity and raw material prices, in addition to lower profit due to lower sales in H2.

Chemicals segment.
As for the YoY changes in H1, sales increased by JPY600 million. The sales of cupric oxide increased due tohigher unit prices from higher copper prices and strong demand for use in substrates. Sales of cuprous oxide
increased due to higher unit prices from higher copper prices and a recovery in demand for ship-bottom paints,
and overall, sales also increased.
Operating profit declined slightly, with the increase due to higher sales, but also due to higher raw material
prices and other factors.
As for the YoY change in the full-year forecast, we expect overall net sales to increase by JPY500 million, withcupric oxide continuing to experience strong demand for use in substrates and cuprous oxide expected to seea recovery in demand for use in ship-bottom paints, while higher copper prices will also have the effect ofincreasing sales.
Operating profit is expected to decrease by JPY200 million. Although an increase in profit is expected due tohigher sales, we expect a decrease in profit due to the impact of a worsening cost ratio caused by higher raw
material prices for cupric oxide, cuprous oxide and sulfuric acid.

Next is the change in net sales by segment from the previous forecast announced on August 9. The following
is a brief explanation of the main factors of increase/decrease in sales forecast for the full year.
The forecast for the Industrial Machinery segment has been revised to negative JPY1.6 billion. Sales are
expected to increase in pump plants, but decrease in material machinery due to lower purchasing power inthe quarrying industry. We expect some delays due to large projects.
In addition, the casting business was spun off and transferred to a new company on October 3, and sales in
H2 from the casting business will be transferred to the other segment, resulting in lower sales in this segment.
The Rock Drill segment is largely unchanged. In Japan, sales will increase in tunnel drill jumbos and hydrauliccrawler drills. Overseas, we expect sales to increase in North America but decrease in Europe.
The forecast for the UNIC segment has been revised to negative JPY0.5 billion. Sales will decrease slightly bothin Japan and overseas due to a decline in shipments of UNIC cranes.
In the Metals segment, sales increased by JPY1.1 billion in H1 mainly due to higher gold prices. The H2 forecast
has not been reviewed. Although higher copper and gold prices are expected to increase revenues, futurefluctuations in metal prices cannot be foreseen, so price increases are not reflected in the H2 forecast.
The forecast for the Electronics segment has been revised to negative JPY0.3 billion. In H2, we expect sales ofhigh-purity metallic arsenic and crystal products to decline due to lower demand for semiconductors.
The forecast for the Chemicals segment has been revised to positive JPY0.4 billion. In H2, we expect a slightincrease in sales for each product.

Next is the change in operating profit versus the previous forecast by segment. As with sales, only key points
will be briefly discussed.
The forecast for the Industrial Machinery segment has been revised to negative JPY0.3 billion. Sales and profits
will increase at pump plants. In material machinery, lower sales and profits are expected due to large projects.
The forecast for the Rock Drill segment has been revised to positive JPY500 million. The increase in productprices is expected to compensate for the increase in raw material prices, and the change in the exchange rate
to a weaker yen in H2 will also contribute to the increase in earnings.
The forecast for the UNIC segment has been revised to negative JPY300 million. The decrease in profit wasdue to lower sales, the expected impact of raw material price hikes and other factors.
In the Metals segment, profit increased by JPY500 million in H1 mainly due to higher gold prices, and the H2
forecast has not been revised. Although the weaker yen is expected to improve the consignment smelting
balance in H2, since price gains from exchange rates and metal price fluctuations are not expected in the
future, the forecast for H2 does not reflect these factors and is set at almost zero.
The forecast for the Electronics segment has been revised to negative JPY0.3 billion. We expect an operating
loss in H2 due to lower profit from lower sales and the impact of higher electricity and raw material prices.
The forecast for the Chemicals segment has been revised to negative JPY100 million. The forecasted decreasein profit is due to the impact of a deterioration in the cost of sales ratio resulting from higher raw material
prices for cupric oxide, cuprous oxide, and sulfuric acid.

Next, we summarize and discuss the main achievements and issues by segment.
First is the machinery business. The main results of the Industrial Machinery segment were the orders received
for the crusher plant for Nippon Steel Slag Products and the new quarry plant for Ryukyu Cement as largescale section plant construction projects. And in bridge construction, we received a Safety Management Order
Winner Award and a Certification as a Company with Excellent Construction Performance by Kanto Regional
Development Bureau, Ministry of Land, Infrastructure and Transport for two consecutive years.
The main tasks are to expand sales of new generation machines of rubber liner slurry pumps, to strengthen
sales of steel structure products other than steel bridges in steel segments, to promote sales of SICON, an
environmentally friendly enclosed hanging conveyor, and to promote sales for new high-efficiency screens.
One of the main achievements of the Rock Drill segment is the development of an attachment drill for thequarrying market in Southeast Asia and its market launch in Indonesia. The product lineup of hydraulic crawler
drills has been restructured, and the concentrated production of mainstay models and the development forcommonality of machines has been initiated. We have strengthened development of high value-added
products for tunneling sites, such as fully automatic drill jumbos and automatic rock bolters. In addition, thedomestic organization has been reorganized for the purpose of concentrating sales of hydraulic crushers forthe demolition market in the Tokyo metropolitan area.
Major issues include strengthening overseas service systems of LCS, lifecycle support, such as training drill
technicians and dealer supports, formulation of commercialization of customer support services, such as
promoting DX to shift from product sales to service sales, and the consolidation of overseas sales subsidiaries.
The dissolution of the sales subsidiaries in Panama and China was resolved in H1 of FY2022, and efforts areunderway to complete the liquidation.

The main achievements of the UNIC segment were the development of a minor-changed machine, large size,with improved lifting performance for the UNIC crane G-FORCE series, the development of a new disassembly
specification for mini-crawler cranes, and the market launch of super-large-sized UNIC crane, which is in highdemand in the Chinese market.
The main challenges are to reduce production costs and optimize parts procurement under soaring raw
material prices, to consider truck electrification, to review overseas dealers in regions with weak sales
capabilities and to establish sales routes in untapped areas, to support technical training, sales training, etc.
for overseas dealers, and to review our overseas strategy, including the Russian market where we havesuspended sales.

Next is the materials business.
The main achievement of the Metals segment was the decision to terminate the consignment smelting
contract with Onahama Smelting and Refining Co., Ltd. at the end of March 2023. From FY2023, unprofitable
exports are expected to be significantly reduced.
As our main issues, we will respond to customers who wish to be supplied even after the termination of theconsignment smelting contract with Onahama Smelting and Refining Co., Ltd. In addition, there will be
fluctuations in earnings due to international market trends and ore purchase terms, although the range offluctuation will decrease from FY2023 onward compared to FY2022 due to lower production.
The Electronics segment's main achievements are as follows. For aluminum nitride, for which demand isstrong, an investment of approximately JPY1 billion is being made to increase production, and a highperformance aluminum nitride with higher thermal conductivity than current products is being introduced tothe market. Sales of diffractive optical elements, DOE, increased for laser processing applications.

The main issues are to consider further investment to increase production in anticipation of increased demand
for aluminum nitride, and to study production increase of high-purity metallic arsenic.
The main results of the Chemicals segment were higher sales of sulfuric acid, mainly for use in the
manufacture of chemicals, and higher sales of cupric oxide for plating for high-end PCs and servers.
The main issue is that there is a delay in passing on higher raw material prices to products.
Recognizing these achievements and challenges, we intend to present specific strategies in the next mid-term
management plan starting next fiscal year.

Next, regarding the strengthening and rebuilding of the overseas marketing capabilities of the Rock Drillsegment, which has been one of our group's priority issues, we are shifting our market-specific strategy froman emphasis on volume to an emphasis on profit, and I will explain the strategy and measures.
The markets to target are North America and Europe. In North America, we will expand sales of large machines
for both hydraulic crawler drills and hydraulic breakers. Approximately 80% of the hydraulic crawler drill
market and 90% of the market in the western region of North America is for large machines. Large hydrauliccrawler drills will shift to North American specifications. We will also strengthen our rebuilt hydraulic breakerbusiness and expand sales of parts.
In addition, it has been decided to establish a logistics and after-sales service base in the western region of
our sales subsidiary in North America. This will reduce transportation costs and delivery lead time.
In Europe, in addition to expanding sales of medium and large-sized hydraulic breakers, we are expanding thenumber of dealers from two to four to expand sales of hydraulic breakers in the UK, which is still developingamong the four major European markets of France, Italy, Germany, and the UK. Hydraulic crawler drills will
be focused on the German market.
The market to be created is Southeast Asia. As a measure to induce customers from pneumatic drills tohydraulic crawler drills, the attachment drill, AHD709, was introduced to the market. We will reorganize andnewly establish dealers by the customer segments of quarry and mining in each country market.
The markets to consolidate and eliminate are South America, China, and India. The Company has decided todissolve its sales subsidiaries in Panama and Shanghai, China. The liquidation is scheduled to be completed
around December 2022 and August 2023, respectively. For India, we are considering dissolving the sales
subsidiary. As for Korea, we are still assessing the business role of the sales subsidiary.
In the Rock Drill segment, we will continue to promote selection and concentration and shift to a businessstrategy for growth.

Next, the Group identified the materiality (key issues) related to sustainability initiatives, which were resolved
at a meeting of the Board of Directors held in November of this year.
We reviewed the CSR priority issues identified in 2013, and identified 10 materiality issues based on the Basic
Policy on Sustainability Initiatives established in December 2021, dividing them into offensive CSV issues anddefensive CSR/ESG issues, as described here.
Regarding offensive CSV issues, we have identified three items as materiality related to solving social issues
through our business: providing environmentally friendly products, technologies and services, contributing to
the resolution of customer issues, and contributing to the creation of a safe and comfortable society, including
infrastructure development.

In terms of the defensive CSR/ESG issues, seven items were identified as materiality related to thedevelopment of a management foundation for growth and classified as ESG.
For environment, there are two items: promotion of climate change countermeasures in business activities
and promotion of biodiversity preservation activities. For society, the three items are the development of asafe and rewarding work environment that takes health into consideration, the recruitment and development
of diverse human resources, and the promotion of management that respects human rights.
For corporate governance, two items were identified: the development of a enterprise risk management
system and thorough compliance.
More information on the materiality identification can be found in the news release on our website, which
was issued on November 11, 2011.

Next are the topics for H1 of FY2022.
The credit rating obtained from Japan Credit Rating Agency, Ltd. was raised to BBB+ from BBB on October 7,
2022. As a result, we have achieved our rating target of BBB+ or higher, as indicated in our 2025 Vision.
We will continue to seek to establish a strong financial base to enable us to raise the necessary funds
regardless of financial conditions.
The reasons for the rating by Japan Credit Rating Agency, Inc. are summarized from the news release.
One. in the past, the Metals segment accounted for a large share of profits, but now the machinery businesshas become the mainstay of the Company's operations, with many products holding a high market share.

Two. Profitability of the Rock Drill segment improved due to a shift in sales strategy from a focus on volume
to a focus on profit. The Metals segment is expected to see a decrease in unprofitable exports due to the endof consignment smelting to Onahama Smelting and Refining Co., Ltd., and a more stable performance due toa reduction in the scale of operations.
In the Industrial Machinery segment, profitability is improving by undertaking all processes from design toconstruction, and the UNIC segment is expected to secure a certain level of profit in the future due to its highmarket share. Thus, the Company is making steady progress in strengthening its earning power, and its
financial position is improving compared to previous years, backed by solid profits.
Three. Although profits are expected to decline in the fiscal year ending March 2023, performance is expected
to improve from the fiscal year ending March 2024 onward. Profitability in the Metals segment is expected to
improve, demand in the UNIC segment is expected to recover over the medium term, and demand in othersegments is generally strong, which will continue to contribute to profits.
Four. The Company's financial position has been improving, with the capital adequacy ratio hovering in the
30% range from the fiscal year ended March 2015 to the fiscal year ended March 2020, but rose to the 40%
range in the fiscal years ended in March 2021 and March 2022. The Company is expected to maintain its ability
to generate solid cash flow, and there is little concern that its financial position will deteriorate significantly.

As other topics, we will introduce the third-party evaluations of the Group's products and technologies that
help solve customer needs and social issues.
Beginning with the development of copper mines, our group has practiced marketing management to provide
products, technologies and services based on the technologies that have supported the social infrastructure.

The awards were given in recognition of the fact that the product, which we jointly developed to address ourcustomers’ issues, has mechanized a series of tasks, dramatically improved safety and productivity, andgreatly improved the burden on workers and the working environment at the harsh site in mountain tunnel
excavation works in the Rock Drill segment.
The BOLTINGER, a rock bolting machine equipped with a six-meter joint bolt placing device, was jointly
developed with Taisei Corporation and won the Infrastructure Technology Development Award by Japan
Institute of Country-ology and Engineering and the Japan Construction Machinery and Construction Award by
Japan Construction Machinery and Construction Association. In addition, Japan's first tunnel drill jumbo using
remote technology, which was jointly developed with HAZAMA ANDO CORPORATION and MAC, won theJapan Construction Machinery and Construction Award by Japan Construction Machinery and Construction
Association.
In addition, the above-mentioned BOLTINGER, and the robot for installing steel arch supports, jointly
developed with Maeda Corporation and MAC, both received the Minister of Land, Infrastructure, Transport
and Tourism Award at the 10th Robot Award by the Minister of Land, Infrastructure, Transport and Tourism,etc.
In the Industrial Machinery segment, as I mentioned earlier, we have received a Safety Management Order
Winner Award and Certification as a Company with Excellent Construction Performance by Kanto Regional
Development Bureau, Ministry of Land, Infrastructure and Transport for two consecutive years in bridge
construction.
Furthermore, four out of the eight projects that were awarded for excellent safety management order werehighly evaluated for their outstanding technical and construction management skills and received theexcellent construction award, the outstanding construction engineer award, and the distinguished service
award for difficult construction work.
For detailed information on each award, please refer to the news releases posted on our website.

Pages 24 through 27 are for reference information, which we hope you will see later.
Just to mention a few key points, on page 24, we are progressively disclosing risks and revenue opportunities
related to climate change in line with the TCFD framework, and we have responded to CDPs from this fiscal
year, which had not been previously responded to.
Regarding decarbonization efforts, as noted, we are in the process of developing a reduction plan in line withthe government's announced CO2 reduction targets.

On page 25, capital investment is as described, and in the Industrial Machinery segment, we are planning athree-year plan to expand an incinerator at the Gunma Kankyo Recycle Center, where medical waste is treated.

On page 26, regarding the production of copper, it is 70,000 tons for the current fiscal year, but is expected
to be about 46,600 tons per year from next fiscal year onward.
That is all for today's explanation.
I would like to ask all our shareholders and investors for their continued support of FURUKAWA CO., LTD.

Question & Answer
Abe [Q]: I’m Abe from Daiwa Securities. I have several questions, so if possible, please answer each question
in a question-and-answer format.
First, except for the Rock Drill and valuation gains in Metals segments, I think the results were lower thanplanned. Is it correct to say that the factor for this is the delay in price pass-through? If there are any changes
in terms of demand, please let us know.
Nakatogawa [A]: First, in the Industrial Machinery segment, as I mentioned earlier, demand for material
machinery has declined. Initially, we had anticipated that there would be an increase in demand at quarries
and lime mountains, but due to recent conditions, this was not as much as expected, and the drop in demandis the main reason for this.
As for UNIC, we have a large backlog of orders, but truck shipments have been delayed, and although we haverevised prices, some of the old prices are still in effect, so there is a delay in passing on prices.
As for the Electronics segment, demand for semiconductors has been declining, and this has led to a drop in
demand from customers who use our high-purity metallic arsenic. We expect this in H2 as well.
In the Chemicals segment, there is a fair amount of demand, but the main reason is that we have not yet beenable to catch up with the corresponding price raise, although we have raised prices to some extent.
Abe [Q]: Secondly, to follow up on what you just said, what is the overall cost impact compared to the previous
year, and how much of that has been passed on, if you have such figures?
Nakatogawa [A]: Overall, roughly, we are projecting an operating profit of JPY7 billion for this fiscal year. The
increase in raw materials will be roughly JPY1.9 billion to JPY2 billion, whereas the price increase is expectedaround JPY1.5 billion to JPY1.6 billion, overall.
Abe [Q]: Next, regarding the UNIC segment, you mentioned truck production trend a little earlier, but fromyour company's perspective, what are your assumptions about future trends, taking into account the current
situation?
Nakatogawa [A]: Regarding the shipment of truck chassis, we see that when shipments seem to be getting
better, they drop off again. Since truck manufacturers are inevitably supplied with parts from China, there isalso the impact of the Chinese lockdown.
However, as I mentioned earlier, the trend is that the market is gradually improving, and Hino Motors, despite
the incident, has been able to obtain certification, so I am hopeful that the market will recover in H2, or at thelatest in April or May of the next spring.
Abe [Q]: Lastly, you mentioned that you were increasing production of aluminum nitride while also obtaining
customer approvals. What progress has been made since then?
Nakatogawa [A]: As I recall, we were talking about receiving certification and shipping by the end of FY2023,
but we are still in the process of installing the equipment and carrying out construction work. The construction
work is progressing as planned, so the schedule remains unchanged.