Furukawa Electric GroupFY2024 Q1 Financial Results
August 6, 2024

Koji Aoshima
Director and Corporate Vice President
General Manager, Finance & Accounting Division
Furukawa Electric Co., Ltd.

© FURUKAWA ELECTRIC CO., LTD.

This presentation materials are created for the purpose of providing information on Furukawa Electric’s activities for shareholders,investors, and members of the media.

Forward-Looking Statements

Projections of future sales and earnings in these materials are “forward-looking statements.”
Management offers these projections in good faith and on the basis of information presently available.
Information in these statements reflects assumptions about such variables as economic trends and currency exchange rates.
Forward-looking statements incorporate known and unknown risks as well as other uncertainties that include, but are not limited to, the following
items.
• Economic trends in the U.S, Europe, Japan and elsewhere in Asia, particularly with regard to consumer spending and corporate expenditures.
• Changes in exchange rates of the U.S. dollar, euro, and Asian currencies.
• Furukawa Electric Group’s ability to respond to rapid advances in technology.
• Changes in assumptions involving financial and managerial matters and the operating environment.
• Current and future trade restrictions and related matters in foreign countries.
• Changes in the market value of securities held by the Furukawa Electric Group.
Due to the above factors, actual sales, earnings, and other operating results may differ significantly from forward looking statements in thesematerials. In addition, following the release of these materials, Furukawa Electric Group assumes no obligation to announce any revisions toforward-looking statement in these materials.

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without prior consent is prohibited.

2Agenda
FY24 Q1 Financial Results and FY24 Forecasts⚫ FY24 Q1 Financial Results Highlights⚫ FY24 Q1 Results – P/L Summary⚫ FY24 Q1 Results – Breakdown of Changes in Net Sales⚫ FY24 Q1 Results – Breakdown of Changes in Operating Profit⚫ FY24 Forecasts – Operating Profit by Segment⚫ Net Sales and Operating Profit by Segment⚫ FY24 Q1 Results – B/S Summary⚫ CAPEX, Depreciation & Amortization and R&D Expenses

Appendix© FURUKAWA ELECTRIC CO., LTD.

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FY24 Q1 Financial Results and FY24 Forecasts© FURUKAWA ELECTRIC CO., LTD.

4

FY24 Q1 Financial Results Highlights■ Achieved increased profit on higher revenue compared to the same period of last year.
The businesses are performing generally as expected.
（ JPY billion, JPY/kg, JPY/USD）

FY23_Q1

FY24_Q1

YoYchangeabb-a

Net sales

246.4

273.6

+27.1

Revenue increased in all segments

Operating profit

(2.8)

3.5

+6.3

Profit increased in all segments excluding Service andDevelopments, etc.

Ordinary profit(1.8)

7.1+8.9

Share of profit of entities accounted for using equity
method increased

Profit attributableto owners ofparent(1.7)

4.7+6.4

Average copper price

1,219

1,570+351

Average echange rate137

156+185

FY24 Q1Results – P/L Summary■ Full year forecasts remain unchanged（JPY billion, JPY/kg, JPY/USD）

FY23_Q1

FY24_Q1

YoY changeabb-a《 Announced on May 13, 2024 》
Breakdown of change（Q1）

FY23Resultsc

FY24Forecasts

YoY changedd-cNet sales

246.4

273.6

+27.1

See page 7

1,056.5

1,080.0+23.5

Operating profit(2.8)

3.5+6.3

See page 8

11.2

25.0

+13.8

（Margin）(1.1%)

1.3%

+2.4

1.1%

2.3%

+1.3

Interest income (expenses)

(1.7)

(1.9)

(0.3)

(7.4)

－－

Share of profit (loss) of entities accounted forusing equity method

1.0

4.5

+3.5

6.3

－

－

Foreign exhange gains (losses)

1.2

1.0

(0.2)

(0.1)

－－

(1.8)

7.1

+8.9

10.3

20.5

+10.2

(0.7%)

2.6%+3.31.0%

1.9%

+0.9

9.8

4.0(5.8)(11.6)

－－

(2.0)

－－

Ordinary profit（Margin）

・Extraordinary income(0.4) [4.8→ 0.8]

Extraordinary income (losses)

2.6

(1.8)

(4.5)

Income taxes

(2.4)

0.3

+2.7

Profit attributable to non-controlling interests

(0.1)

(0.8)

(0.7)

Profit attributable to owners ofparent

(1.7)

4.7

+6.4

6.5

13.0

+6.5

（Margin）(0.7%)

1.7%

+2.4

0.6%

1.2%+0.6

Average copper price

1,219

1,570+351

1,262

1,155(107)

Average exhange rate137156+18145

140(5)

・Extraordinary losses(0.5) [(2.2) → (2.7)]

6

FY24 Q1 Results – Breakdown of Changes in Net Sales(JPY billion)+27.107

FY24 Q1 Results – Breakdown of Changes in Operating Profit(JPY billion)

+6.3

0

* Including foreign
currency exchange

Communications Solutions: (2.9)
Energy Infrastructure: ＋2.0
Automotive Products & Batteries: ＋0.5
Functional Products: ＋1.4
Others: (0.2)

Communications Solutions: (0.6)
Electronics Component Material: (0.2)
Functional Products: (0.3)

Communications Solutions: 0.0 [Improved productivity ＋1.0,
Decreased valuation of inventories (1.0)]
Energy Infrastructure: ＋1.0
Automotive Products & Batteries: ＋3.0
Electronics Component Material: ＋0.6
Functional Products: ＋1.7
Others: ＋0.6

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FY24 Forecasts – Operating Profit by Segment■ Full year forecasts remain unchanged■ We will continue to assess the demand recovery in each segment and the growth ofgenerative AI related demand

Operating profit of main segments(JPY billion)

Segments

Sub-segments

Profit image compared to the last half
H1H2

FY23ResultsaInfrastructure

CommunicationsSolutions(6.0)

Energy Infrastructure

(2.6)

(6.9)

H1
Q1(13.0)

H2

FY24

YoYchangebb-a(6.0)

＋7.0

3.5

＋1.8

16.5

＋0.9

4.5

＋1.4

Slightly below expectations due to delayed
recovery in the electronics market

10.0

＋4.5

Exceeded expectations due to strong demand forgenerative AI and data center related products

25.0

＋13.8

(4.0)
4.4

1.7

Progress in Q1

Forecasts

Performed as expected

1.1
Electronics &Automotive
Systems

Automotive
Products& Batteries

2.3Electronics
Component Material

0.6

Functional Products

13.3

15.6
3.6

2.5

3.1
0.5

2.13.45.5
3.4

Consolidated total(include service and developments, etc.
segment, and elimination)

(4.6)

15.8

11.2
3.59

FY24 Forecasts – Net Sales and Operating Profit by Segment《 Announced on May 13, 2024 》(JPY billion)

Net sales

Net sales

Operating profit

FY23_Q1

FY24_Q1

YoYchangeabb-aOperating porfit

FY24_Q1

YoYchange

FY23Results

FY24Forecasts

YoYchange

FY23Results

FY24
Forecasts

YoYchangeｃｄd-ceff-eghh-g

FY23_Q1

68.7

68.8

+0.1

(3.2)

(2.9)

+0.3

278.2

290.0

+11.8

(11.3)

(2.5)

+8.8

Communications Solutions

46.8

39.9

(6.9)

(1.7)

(4.0)

(2.3)

168.0

175.0

+7.0

(13.0)

(6.0)

+7.0

Energy Infrastructure

21.9

28.9

+7.0

(1.5)

1.1

+2.6

110.2

115.0

+4.8

1.7

3.5

+1.8

Electronics & Automotive Systems

149.7

167.2

+17.5

0.2

4.1

+3.9

653.7

650.0

(3.7)

18.7

21.0

+2.3

Automotive Products & Batteries

88.2

94.1

+6.0

0.1

3.6

+3.5

379.8

385.0

+5.2

15.6

16.5

+0.9

Electronics Component Material

61.5

73.1+11.6

0.1

0.5

+0.4

273.9

265.0(8.9)

3.1

4.5

+1.4

Functionl Products

27.5

35.9

+8.4

0.7

3.4+2.6

115.4

135.0

+19.6

5.5

10.0+4.5

Service and Developments, etc.

6.5

8.0

+1.5

(0.6)

(1.0)

(0.4)

31.6

30.0

(1.6)

(1.9)

(3.5)

(1.6)

Elimination of intra-company transactions

(5.9)

(6.3)

(0.4)

0.1

(0.1)

(0.2)

(22.4)(25.0)

(2.6)

0.1

0.0

(0.1)

Consolidated total

246.4

273.6

+27.1

(2.8)

3.5

+6.3

1,056.5

1,080.0+23.5

11.2

25.0

+13.8

Infrastructure

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Net Sales and Operating Profit by Segment

1-(1) Infrastructure (Communications Solutions)
FY24_Q1（JPY billion）

Decreased profit on lower revenue
FY23_Q1

FY24_Q1

YoYchangeabb-a

Net sales

46.8

39.9

(6.9)

Operatingprofit

(1.7)

(4.0)

(2.3)

Recognition of the business environment
Fiber & cable【Factors affecting profits】

Recovery in demand

Optical device/
Networking related
products in Japan(-) Decreased telecom related demand(+) Increase in data center related orders

FY24_H1＞＞••

FY24_H2＞＞

Elimination of customers' inventory adjustments
Increase cable demand through BEAD*1 programs

Increase demand for the data center market
Weighted heavily in the second half

Key points

Shift from general-use products to high-value-added products and solutions
Develop new customers and strengthen production and sales structure in the data center and2FTTx* market
Rollable ribbon cable

Networking systems

ITLA*3/DFB*4*1 Broadband Equity Access and Deployment Program*2 Fiber To The x (generic term for communications service networks using optical fiber)*3 Integrated Tunable Laser Assemble*4 Distributed Feedback Laser

11

Net Sales and Operating Profit by Segment

1-(2) Infrastructure (Energy Infrastructure)
FY24_Q1（JPY billion）

Increased profit on higher revenue
FY23_Q1

FY24_Q1

YoYchangeabb-a

Net sales

21.9

28.9

+7.0

Operatingprofit(1.5)

1.1+2.6【Factors affecting profits】(+) Increase in sales of domestic extrahigh voltage, renewable energy projects,
functional power cable, etc.

Recognition of the business environment＞＞
Domestic extrahigh voltage

FY24_H1

FY24_H2＞＞

Submarine lines

Demand such as domestic renewal and renewable energy projects/construction projects concentrated in the second half

China

Moderate economic recovery

Functional power
cable/components

Steady demandKey points••

Secure orders with a focus on profits, and optimize sales prices
Increase cable manufacturing and installation capacity•

Increased sales by promoting marketing activities

Domestic extra-high voltage and submarine lines

Rakuraku aluminum cableⓇ

Renewable energy projects

Transmission and distribution components

12Net Sales and Operating Profit by Segment

2-(1) Electronics & Automotive Systems (Automotive Products & Batteries)
FY24_Q1（JPY billion）

Increased profit on higher revenue
FY23_Q1

FY24_Q1

YoYchangeabb-a

Net sales

88.2

94.1

+6.0

Operatingprofit

0.1

3.6+3.5

Recognition of the business environment＞＞【Factors affecting profits】(+) Improved productivity through stableorders(+) Slight increase in sales volumes

FY24_H1

FY24_H2＞＞

AutomotiveProducts

Customer production plans are generally stable
Slight increase in automobile production
Increase in the number of models equipped with aluminum wire harnesses

Batteries

Both automotive and industrial sales concentrated in the second half

Key points•

Develop products and respond to autonomy for the electric vehicle market
Aluminum wire harness (including high-voltage products)

13

Net Sales and Operating Profit by Segment

2-(2) Electronics & Automotive Systems (Electronics Component Material)
FY24_Q1（JPY billion）*Including the impact of changes incopper prices and foreign currency
exchange

Increased profit on higher revenue
FY23_Q1

FY24_Q1

YoYchangeabb-a(preference)
Average copper price: JPY / kg
Average exchange rate: JPY/USD
FY23_Q1

FY24_Q1

1,2191,570137156*Net sales

61.5

73.1

+11.6

Operatingprofit

0.1

0.5+0.4

Recognition of the business environment＞＞【Factors affecting profits】

FY24_H1

FY24_H2＞＞

Demand for automotive-related products are firm(+) Improved product mix

Recovery in electronics-related demand

Key points•

Promote and expand sales of high-value-added products

Heat-resistant oxygen-free copper strips(for power semiconductors/heat dissipation components)•

Ribbon cable and ultra fine flat wire(for 5G telecommunications)High performance products(resistance materials)Optimize sales prices and withdraw from low-margin products
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Net Sales and Operating Profit by Segment

3 Functional Products
FY24_Q1（JPY billion）

Increased profit on higher revenue
FY23_Q1

FY24_Q1

YoYchangeabb-a

Net sales

27.5

35.9+8.4

Operatingprofit

0.7

3.4+2.6

Recognition of the business environment＞＞【Factors affecting profits】(+) Increased net sales of generative AIand HDD related products

FY24_H1

FY24_H2＞＞

Moderate recovery in global demand for smartphones and PCs. related products
Inventory adjustments in the supply chain for HDD related products is ending sooner thanoriginally expected
Generated AI-related investments continue to be brisk

Key points•

Continue to increase sales of high value-added products for data center and renewableenergy markets

Tape for semiconductor
process•High performance heatdissipation and cooling products

Aluminum blanks for HDD

Copper foil for highfrequency circuit boards

Establish a manufacturing structure to meet the growing demand for generated AI andsemiconduc​tor-relate​d​ products

15

FY24 Q1 Results – B/S Summary（JPY billion）

End of 23Q4*

End of 24Q1

Changeabb-aInventories Increased by JPY 16.6 billion(including the impact of foreign currency exchange and copper prices ofJPY + 6.8 billion)

Current assets

517.8

532.7

+14.9

Cash and deposits

48.9

43.5

(5.4)

Notes and accounts receivable- trade, and contract assets

245.7

248.1

+2.4

Total inventories

183.6

200.2

+16.6

Non-current assets

467.2

440.2

(27.0)

Property, plant and equipment
Investments and other assets

278.6
20.3
168.3

281.7
19.9
138.6

+3.1
(0.4)
(29.7)

Total assets

985.0

972.9

(12.1)

Current liabilities

400.9

417.3

+16.4

Non-current liabilities

225.9

215.9(9.9)

Total liabilities

626.8

633.2

+6.5

Shareholders' equity

284.9

260.6

(24.3)

43.4

48.4

+5.0

Impact of change in scope of consolidation： JPY (30.5) billon *Mainly UACJ
Impact of foreign currency exchange: JPY +15.6 billion

29.9

30.6

+0.7

Shareholders’ equity

Total net assets

358.2

339.6

(18.6)

Total liabilities and net assets

985.0

972.9

(12.1)

Equity capital ratio33.3%

31.8%(1.5)

Net interest-bearing debt

284.1

287.7

+3.5

Net D/E ratio

0.87

0.93+0.06

Intangible assets

Accumulated other comprehensive
incomeNon-controlling interests*Restated the FY23 financial results following changes to the accounting standards for corporate taxes,
municipal taxes and business taxes (refer to the Appendix)

Projects and construction planned to be recorded as net sales in the future(Increased by JPY 4.3 billion compared to the end of FY23Q4)

Property, plant and equipment, and intangible assets
Increased by JPY 2.7 billionImpact of CAPEX and depreciation: JPY (2.2) billion
Impact of foreign currency exchange: JPY +5.2 billion
Retirement, etc.: JPY (0.3) billion

Investments and other assets

Decreased by JPY 29.7 billion

Investment securities: JPY (30.3) billion*Mainly due to the reclassification of UACJ shares(Shares of subsidiaries and associates → Shares of a non-affiliated company)

Total assets

Decreased by JPY 12.1 billion

Decreased by JPY 24.3 billion

Retained earnings: JPY (24.3) billion *Mainly sale of UACJ shares

Accumulated other comprehensive income Increased by JPY 5.0 billion
Valuation difference on available-for-sale securities: JPY +11.0 billion*Mainly due to the gain on mark-to-market valuation of UACJ
Foreign currency translation adjustment: JPY (5.6) billion

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CAPEX, Depreciation & Amortization and R&D Expenses■ Full year forecasts remain unchanged《 Announced on May 13, 2024 》（JPY billilon）

FY23_Q1
Results

FY24_Q1
Results

YoYchange

FY23Results

FY24Forecasts

YoYchangeabb-acdd-c

CAPEX

8.5

6.9(1.6)

39.0

48.0+9.0

Depreciation
andamortization

9.5

10.1

+0.7

39.0

41.0

+2.0

R&D
expenses

6.4

6.4

+0.1

24.5

26.0+1.5

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Initiatives to Optimize the Business Portfolio
Overview of the groupwide reorganization

Establish a global holding company forthe optical fiber and cable businesses**Subsidiary business companies:
Newly established corporation (Japan), OFS (US), FEL (Brazil)

Merge the metal power cable business
into Furukawa Electric Industrial Cable
Co., Ltd.*

Completion

Profit improvement

April 2025

October 2025

*Business included in the merger:
KANZACC Co., Ltd., and part of Furukawa Electric Co., Ltd., Riken
Electric Wire Co., Ltd. and Okano Cable Co., Ltd.

Transfer shares of The Furukawa
Battery Co., Ltd. and reinvest in thestorage battery business throughpartner companies

Main objective

April 2025
(Expected)•

Promote efficiency in business operations anddeepen synergies by leveraging the featuresand strengths of the businesses in each region,and capture global business opportunities

Transform the business portfolio•••

Profit improvement

Promote efficiency in business operations
Specialize in product lineups that arecompetitive in the market

Transform the business portfolio•Growth strategy

Corporate governance

Grow and develop The Furukawa Battery Co.,
Ltd. under the direction of the best owner
Eliminate the situation of both the parent andsubsidiary being listed companies

18Thank you© FURUKAWA ELECTRIC CO., LTD.

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Appendix⚫ Changes from FY24 -B/S
⚫ Segments and Business Divisions© FURUKAWA ELECTRIC CO., LTD.

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Appendix Changes from FY24 -B/S
■Changes in the accounting standards for corporate taxes, municipal taxes and business taxes
We restated the FY23 financial results following the above changes（JPY billion）End of FY23

Current assets

517.8

517.8

Cash and deposits

48.9

48.9

Notes and accounts receivable- trade, and contract assets

245.7

245.7

Total inventories

183.6

183.6

Non-current assets

467.2

467.2

Property, plant and equipment

278.6

278.6

Intangible assets

20.3

20.3

Investments and other assets

168.3

168.3

Total assets

985.0

985.0

Current liabilities

400.9

400.9

Non-current liabilities

226.1

225.9

Total liabilities

627.0

626.8

Shareholders' equity

284.7

284.9

Accumulated other comprehensive
income43.4

43.4

Non-controlling interests

29.9

29.9

Total net assets

358.0

358.2

Total liabilities and net assets

985.0

985.0

Equity capital ratio

33.3%

33.3%

Net interest-bearing debt

284.1

284.1

Net D/E ratio

0.87

0.87

ROE

2.1%

2.1%

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Appendix Segments and Business Divisions
Segment

Sub-segment
Communications

Infrastructure

Solutions
Energy Infrastructure

Business Division
Optical Fiber and Cable Products
FITEL Products
Broadband Solutions Business
Power Cable
Industrial Cable & Power Cable Accessories

Automotive Products

Automotive ProductsElectronics & Automotive& Batteries

Batteries

Systems

Electronics Component

Electric Conductor

Material

Copper & High Performance Material Products
AT & Functional Plastics

Functional Products

Thermal Management Solution & Products
Memory Disk
Copper Foil

Service and Developments, etc.

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