Furukawa Electric Co., Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2024 and Progress of 25 Mediumterm Plan
May 13, 2024

[Number of Speakers]

2Hideya Moridaira
Koji Aoshima

President
Corporate Vice President, and General
Manager of Finance & Accounting Division

Moridaira: Thank you very much for taking time out of your busy schedule today to join us in the Group's
FY2023 financial results and progress of the 2025 Mid-term Plan report. I will now explain in accordance withthis document. Thank you for your cooperation.
Here is today's agenda. First, Mr. Aoshima will explain the results for FY2023 and the forecast for FY2024, andthen I will explain the progress of the 2025 Mid-term Plan.
Now, Mr. Aoshima, please begin.

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Aoshima: I am Aoshima from the Finance & Accounting Division. I will now explain the financial results for
FY2023 and the forecast for FY2024.
See page five. The financial highlights for FY2023.
As for actual results for FY2023, net sales and income declined YoY, but increased from the previous forecasts.
Net sales were JPY1,056.5 billion, operating income was JPY11.2 billion, and operating income was positive
JPY11.7 billion for Q4 alone. Ordinary income was JPY10.3 billion, partly due to an increase in interestexpenses. Net income attributable to owners of the parent was positive JPY6.5 billion.
Compared to the previous forecast, operating income, ordinary income, and net income attributable toowners of the parent increased mainly due to higher-than-expected sales of optical cables for North America
in the Infrastructure segment and one-time revenues from customers due to market fluctuations in theElectronics & Automotive Systems segment.
I will skip the explanation on page six through page eight, but the factors for YoY increases or decreases insales and operating income are the same as the trends through Q3.

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FY23 results - P/L summary*1Restated only the FY2022 financial results following thestart of voluntary application of the International Financial
Reporting Standards (IFRS) at the equity method affiliate
UACJ Corporation (Refer to the Appendix for details)*3 Impact of deconsolidation of TOTOKU :Net sales JPY (12.2) billion
Operating income: JPY (2.3) billion

6All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2024

FY23 results - Breakdown of changes in net sales(JPY billion)(9.8)

0All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2024

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FY23 results - Breakdown of changes in operating income(JPY billion)

(8.5)

(4.8)

+9.8

0

*Including foreign currency exchange

Communications Solutions : (18.7)
Automotive Products & Batteries : +9.2
Electronics Component Material : (1.4)
Functional Products : +2.0
Others : +0.4

Communications Solutions : (1.7 )Automotive Products & Batteries : (2.0 )Electronics Component Material : (1.2)
Others : +0.1

All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2024

Communications Solutions : +1.2
Automotive Products & Batteries : +3.8
Electronics Component Material : +2.3
Functional Products : +1.6
Others : +0.9

Price optimization/Cost reductions+6.9
Impact of lower operating volumes (5.7)

84The explanation by segment on page nine through page eleven is mainly about operating income comparedto the previous forecast.
The Infrastructure segment exceeded the previous forecast.
In Communications Solutions, operating income exceeded the previous forecast by approximately JPY1.5
billion due to a slight increase in sales of optical cables for North America and cost containment. Operatingincome for Energy Infrastructure increased slightly, although it was mostly in line with our forecast.

5Page 10.
The Electronics & Automotive Systems segment exceeded the previous forecast.
In Automotive Products and Batteries, operating income exceeded the previous forecast by about JPY2.6
billion, partly due to lump-sum income from customers resulting from market fluctuations and the effect offoreign currency exchange. Operating income for Electronics Component Material was almost in line with theforecast but increased slightly.

6Page 11.
In the Functional Products segment, net sales fell short of the forecast due to the effect of sales elimination
caused by the differences in fiscal year-ends of overseas subsidiaries. However, operating income was almost
in line with the forecast, but slightly up by about JPY0.5 billion, due to continued strong demand for products
related to generative AI.

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Page 12 is a B/S summary at the end of FY2023.
Total assets increased by JPY51.5 billion. Of this amount, JPY34.4 billion was due to foreign exchange effects.
Inventories increased by JPY11.4 billion from the end of the previous year. Excluding the JPY8.4 billion impactof foreign exchange and copper prices, inventories increased by approximately JPY3.0 billion.
In net assets, foreign currency translation adjustments in other comprehensive income increased by JPY25.2billion due to the weaker yen.
Free cash flow was positive JPY7.1 billion and net interest-bearing debt increased by JPY7.7 billion, partly due
to the impact of yen depreciation, but the net D/E ratio improved by 0.1 point.

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Next, we will explain our forecast for FY2024. See page 13.
For FY2024, we forecast YoY increases in net sales and profit at each stage.
We forecast net sales of JPY1,080.0 billion, operating income of JPY25.0 billion, ordinary income of JPY20.5billion, and net income attributable to owners of the parent of JPY13.0 billion. Details of net sales andoperating income will be explained later. Operating income assumes a non-operating foreign exchange loss
due to the assumed exchange rate of JPY140. Extraordinary income is based on the assumption that we willcontinue streamlining our asset holdings.
The assumptions for the exchange rate and copper price are as shown.

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FY23 results - Breakdown of changes in operating income(JPY billion)

(8.5)

(4.8)

+9.8

0

*Including foreign currency exchange

Communications Solutions : (18.7)
Automotive Products & Batteries : +9.2
Electronics Component Material : (1.4)
Functional Products : +2.0
Others : +0.4

Communications Solutions : (1.7 )Automotive Products & Batteries : (2.0 )Electronics Component Material : (1.2)
Others : +0.1

All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2024

Communications Solutions : +1.2
Automotive Products & Batteries : +3.8
Electronics Component Material : +2.3
Functional Products : +1.6
Others : +0.9

Price optimization/Cost reductions+6.9
Impact of lower operating volumes (5.7)

8Page 14 is a P&L summary. I will spare you the explanation.

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Page 15 shows the analysis of changes in net sales.
Excluding the effects of fluctuation in price of unprocessed metals and foreign exchange, the amount of realchange is an increase of JPY49.8 billion.

11Page 16 shows the breakdown of the changes in operating income.
The positive JPY15.6 billion is due to a substantial increase in sales. Although other fixed expenses will increaseby JPY12.5 billion due to an increase in personal expenses from higher wages, increased operations, and thereturn of fixed expenses that were curbed in the previous year, we expect an increase of JPY13.8 billion fromFY2023, with an additional JPY17.2 billion expected from productivity improvements, price optimization,
product mix, and other improvement effects.

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FY24 forecasts - net sales and operating income by segment(Reference)
JPY/kg
JPY/USDFY22Results

FY23Results

FY24
Forecasts

Averagecopperprice

1,209

1,262

1,155

Averageexchangerate135

145

140

*2

*1Deconsolidation of the TOTOKU from FY22Q4

All Rights Reserved, Copyright© FURUKAWA ELECTRIC CO., LTD. 2024

*2 Substantially increase revenue excluding impact of changes in copper prices

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I will skip the explanation on page 17.

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Page 18 shows an image of operating income for H1 and H2.
While we recognize that the overall market is in a recovery trend, there are many markets that will recover in
H2, and we cautiously anticipate the scale and timing of the recovery. Since some of our businesses havetraditionally been weighted in H2, we expect that the start of Q1 will not be so high compared to Q4 of 2023,
and we feel that the balance between H1 and H2 will be about 30% and 70%.
This table shows the direction of income compared to the last half.
We recognize that this is the direction for the Energy Infrastructure business, which has traditionally been
weighted in H2, and for the Automotive Products & Batteries business, which has received lump-sum incomein the last half. In H2, we expect an uptrend in all segments, but in the Functional Products segment, we expect
the uptrend to continue throughout H1 and H2 due to strong AI-related demand.

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Page 19, Communications Solutions.
The forecast is for YoY increases in both sales and income. Demand for optical fiber & cable is on a recovery
trend, but we are cautious about the timing, and our forecast is based on the assumption that customers'
inventory adjustments will be eliminated from H2. Excluding foreign exchange effects, net sales will increase
in real terms, and productivity will also improve due to higher factory operations. Profit is also expected toincrease due to an improved product mix and an increase in data center-related orders.
However, since we are forecasting a total loss for FY2024, we will continue to promote the initiatives shownin the key points.

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Page 20, Energy Infrastructure.
We forecast a YoY increase in both sales and income. Construction projects will continue to be concentratedin H2, and profit is expected to increase due to progress in domestic extra-high voltage cables and renewableenergy submarine line projects.

16Page 21 is for Automotive Products & Batteries. Automobile production is expected to increase slightly, andFurukawa Battery's sales are expected to increase, resulting in YoY sales and profit growth.

17Page 22 is Electronics Component Material.
Excluding the impact of changes in copper prices, we forecast a YoY increase in real terms in both sales andincome. In addition to steady demand for automotive-related products, the recovery of electronics-related
demand from H2 is expected to improve factory productivity and boost profits.

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Page 23, Functional Products.
We forecast a YoY increase in both sales and income. In addition to continued brisk investment in products
related to generated AI, we expect profit growth due to higher sales as demand for smartphones, PCs, andother products recovers and inventory adjustments in the supply chain gradually dissipate.

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Page 24 shows CAPEX, depreciation & amortization, and R&D expenses.
CAPEX for FY2023 was JPY39.0 billion, a decrease of about JPY4.0 billion from the previous forecast, due tocost reductions. Depreciation & amortization for FY2023 was JPY39.0 billion, the same amount as CAPEX.
CAPEX in FY2024 is expected to be JPY48.0 billion, up JPY9.0 billion YoY. We will be conscious of cash allocationand make appropriate investments in line with market trends.
Regarding R&D expenses, we will continue to invest in R&D aimed at future growth.
That is all for my explanation.
Moderator: Next, President Moridaira will explain the progress of the 2025 Mid-term Plan. President
Moridaira, please.

20Moridaira: I will now explain the progress of the 2025 Mid-term Plan.
First of all, I would like to start with a recognition of the current situation.
See page 27. This table, which Mr. Aoshima used earlier in his explanation, shows the whole picture. Thisshows the results for FY2023 and then the forecast for FY2024.
First, FY2023 results were tough, mainly due to a decline in Communication Solutions. However, othersegments such as Automotive Products and Functional Products, as well as other segments, showed arecovery in H2 compared to H1.
We expect this trend to continue in FY2024 and for overall demand to recover. However, due to the traditional
bias toward H2 and other factors, we are somewhat cautious in projecting the ratio compared to the last half
as shown here for each sub-segment. Especially for Communications Solutions, we expect the recovery trend
to become clearer in H2 of FY2024.
The current situation is still far from the target of the 2025 Mid-term Plan, which is to achieve operating
income of JPY58.0 billion or more. However, we believe that whether or not the forecast for FY2024 can beachieved, especially in Communications Solutions, will determine whether or not the goals of the 2025 Midterm Plan can be achieved. If this area continues to perform as expected, we believe we will be able to achieve
the 2025 target.

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See page 28. Efforts to improve profitability are steadily underway in each of our businesses toward achieving
the goals of the 2025 Mid-term Plan that I just mentioned.
However, as market volatility tends to increase, we intend to further enhance our ability to respond tochanges and strongly promote transition to a profit structure that is not affected by the business environment,
which will lead to better results in the future.
The current business base and customer base of our group is largely based on communications,semiconductors, electronics, and automobiles, which have recently been undergoing major changes, andwhile there are naturally areas related to AI and data centers, where investment continues to be brisk, werecognize that in the Communications Solutions, which is experiencing a slump, the percentage of AI and data
centers is probably somewhat lower than that of our competitors, and this is the reason for the lowerprofitability of our business. We are continuing to strengthen this area and are gradually seeing positiveeffects, and we will continue to do so to further solidify the recovery trend.

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I will continue with an explanation of the progress of the priority measures.
See page 30.
As I have just explained, despite tough consequences in FY2023, we are making steady progress in the threepriority measures set forth in the 2025 Mid-term Plan. We will firmly continue these efforts to increase thecorporate value of the Group and aim to achieve a PBR of more than one as soon as possible.

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Page 31 is the status on maximizing revenues in existing businesses.
We plan to expand earnings by recovering the Communications Solutions segment, which posted an operating
loss in FY2023, achieving further growth in the Functional Products segment, and stabilizing earnings in theAutomotive Products & Batteries segment.

24See page 32. This slide was created with the intention of showing the progress of maximizing earnings inexisting businesses by stepping out into new areas from existing products and markets, as shown in the figureon the left.
Efforts to maximize earnings in each of our businesses, such as power cable systems and wire harnesses, aremaking steady progress. As I mentioned earlier, in addition to these products, we will further expand sales ofheat radiation and cooling systems, which are currently performing well in the AI and data center markets,
while optimizing the product mix and expanding sales related to Communications Solutions, such as opticalfiber cables and optical components, which I mentioned earlier as being under-performing in the current
situation, in order to further increase our earnings.
In addition, the new Mie Plant for semiconductor manufacturing tapes, in which we have already invested toincrease production, is being prepared to start mass production in FY2025, and we are taking actions tocapture further growth in the semiconductor market, which is expected to recover in the future.

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Let me tell you a little more about Communications Solutions.
In Europe and North America, where the market environment has been severe, especially in the North
American market, inventory adjustments have begun to progress among telecommunications carriers andother customers, and it is now believed that the market has bottomed out. Orders are also showing signs ofa gradual turnaround. We believe that a gradual recovery will begin to emerge and that we will respond to
this recovery by closely monitoring its progress.
In addition, we will further promote sales expansion activities in the robust AI and data center markets tocapture carrier demand, as well as demand for high value-added products or demand in expanding markets
and ensure that demand is linked to growth by strengthening our production and sales structure. This is theconcept behind the current recovery in Communications Solutions.

26See page 34. This is the second priority measure, which relates to building a foundation for creating newbusinesses.
In this second measure, various initiatives are also in progress. Please see the items listed here as main
initiatives, as they are typical examples.

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We will now move on to page 35. This is the third priority measure, strengthening the foundation for ESG
management.
On the left side, GHG emission reduction is being managed under a new target, shifting the previous target toa stricter one. We are currently making progress in meeting this target.
On the right side, the employee engagement score is an indicator that aims to transform into a sustainablegroup over the medium to long term by improving the job satisfaction of our employees. Although we havebeen focusing on the non-consolidated score first, this year we have expanded the survey of scores to theentire group, and we intend to revitalize this effort with the improvement of this consolidated indicator as anew goal.

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Next, I will talk about business portfolio optimization and allocation of management resources.
See page 37.
ROIC, and FVA(Furukawa Value Added), our proprietary indicator. The first step in implementing appropriate
resource allocation based on these management indicators is to reduce or withdraw unprofitable orunderperforming products at the product level. In conjunction with this, we are working on these indicators
based on business growth through concentration on high-profit products. This has become quite wellestablished.
As an extension of these activities, we are also looking at optimization in the context of businesses. Currently,
two projects are underway for improved profitability and two projects are underway as growth strategies.
We are also continuing to improve our financial position and generate cash through measures such as
improving our cash conversion cycle and reducing our asset holdings.

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See page 38.
With regard to shareholder returns, our basic policy is to continue to provide stable and continuous returns
to shareholders, while linking dividend payments to business performance, with a target of 30% of net income
attributable to owners of the parent.
As for dividends for FY2023, we plan to pay JPY60 per share. We currently forecast a similar dividend of JPY60
per share for FY2024.

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Finally, we have included overarching financial targets through FY2025.
The forecast for FY2024 and the target for FY2025 are shown in the table, respectively, and the targets for theMid-term Plan have not been changed so far. As I have mentioned, we will continue to move forward toachieve the goals of the 2025 Mid-term Plan, paying particular attention to Communications Solutions, while
keeping an eye on the transition in the current fiscal year.
This is all from me. Thank you very much for your kind attention.

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