01

02

Get to Know FURUNO

02

For Future Growth03

Business Strategy

04

Governance, Social and Environmental Reports

05

Together with Society

06

Financial and Non-financial Data

For Future Growth
FURUNO’s Materiality and Sustainable Management

FURUNO’s Materiality for a Sustainable GrowthMateriality

Materiality (Important Issues)
To continue to serve society, FURUNO has identified materiality that should be addressed to contributeto a sustainable society through its business and to enhance corporate value. The materiality identified
will be reviewed and revised as necessary based on changes in the business environment and thedemands of social issues, as well as advice received through dialogue with our stakeholders.

Materiality Identification Process
FURUNO identified the 169 targets of the SDGs and social issues in the fisheries and marinetransportation industries. FURUNO then selected issues to be addressed for a sustainable growthconsistent with its management philosophy and Global Vision NAVI NEXT 2030.

Sustainable Management
FURUNO has grown by creating new innovations that contribute to solving social issues and providing
value that combines social and economic values. FURUNO will continue to use its management capitalto create further innovations and provide even more value, contributing to its sustainable management.

INPUT

Marine andglobal
environmental
conservation

Communityand humanresource
development

Equity ratio: 49.0%■Intellectual CapitalCore technologies (see P.34)
Overseas R&D: 4 companies■Human Capital

Solving social issues throughbusiness

Preservationand utilizationof management
infrastructure
for businesspromotion

Environment-friendly production• Create products based on the preservation of the global environment, formationof a recycling-oriented society, and maintenance of biodiversity

Aging staff and manpower
shortages• Reduce workload with unmanned vessels, providing support for vessel operation
with remote management• Support the realization of smart fisheries using types of data that do not rely on
intuition and experience

Coexistence and co-prosperity• Support fishermen with sustainable fisheries• Contribute to local communities in areas such as cultural promotion andenvironmental preservation

Diversity and inclusion promotion• Develop diverse human resources and more productive work styles• Promote DX to create new businesses, such as marine DX

Utilization of intellectual assets• Strengthen corporate competitiveness by acquiring and utilizing intellectual
property

Corporate governance• Implement governance that pursues legality, appropriateness, efficiency, and risk
management, while being accountable to stakeholders

Sustainable procurement
promotion• Share strategies with business partners to deepen mutual understanding• Promote CSR activities throughout the supply chain

Thorough security export
control• Comply and transact based on relevant laws and regulations, international
economic sanctions, etc.

OUTCOMEFURUNO ensures safety, peace of mind, and higher efficiencyfor a wide variety of ships

New Challenges: New BusinessValueCreation

Social Value
Economic Value

Production bases: Japan, China

Service locations: 39 locations worldwide• Support for managed fisheries using catch information• Support for increasing aquaculture fish production

Provide value to new fields with our core technologies■Manufacturing Capital

Offices: 5 in Japan, 31 overseas

Protection of fishery resources andresponse to increasing food demand

OUTPUT

A company exists toserve society(Japan: 1,794 overseas: 1,516)

Sales in over 80 countries• Avoid collisions through autonomous navigation• Prevent pollution caused by maritime accidents

Main Business: Marine Business

Consolidated employees: 3,310■Social and Relationship Capital

Prevention of marine accidents
and pollution

FURUNO’s Sustainable Management

Global human resources

Capital investment: ¥2.2B, experimental boats: 3

Initiatives

Utilization of DX■Financial Capital
Good financials (assets: ¥52.5B)

Elements

Pursuit of innovation

Its management must
be creative■Natural Capital

Realization of the Mid-term Management PlanFY 2020 - 2022

Phase

1

FY 2023 - 2025

Phase

2Achieve better safety, security andcomfort to bring about a society and seanavigation that considers the needs ofpeople and the environment
Economic value targets for 2030

Net sales: ¥120B Operating margin: 10%
New business composition ratio: 30%
Social Value

A sustainable earth and society

FY 2026 - 2030

Phase

3Advance

Connect

Transform

Procure resources andstrengthen our capabilities
by improving the structureof our businesses

Act towards building a
profitable structure and thepillars of our technologies
and businesses

Realize an appropriate
corporate scale, profitability,and business structure

Marine resources

Circulation of Management Capital

The happiness of its employees comes
22

with the growth of a company
23

01

Get to Know FURUNO

02

For Future Growth03

Business Strategy

04

05

Governance, Social and Environmental Reports

Together with Society

06

Financial and Non-financial Data

Sustainable Growth
Corporate VisionFY

FURUNO GLOBAL VISION “NAVI NEXT 2030”

All Phases Completed
Growth Targets for FY 2030

While respecting the Management Principles and Action Guidelines as universal values, we have clearlystated the vision we aim to achieve by 2030 as a new management vision consisting of a Business Vision anda Vision for Human Resources and Corporate Culture, and we intend to continuously and progressively
increase both customer value and corporate value by developing various activities to realize this vision.

LocalCommunity

Employees

Management Principles• A company exists to serve society• Its management must be creative• The happiness of its employees comes with the growth of a company• Challenge the Invisible• Face the future• Strive to be the best
• Be persistently original • Be sincere

Achieve better safety, security and comfort to bring about asociety and sea navigation that considers the needs of peopleand the environment
This business vision expresses the priority that all businesses in theFURUNO Group place on working to bring about safety, security andcomfort on the sea and land, as the basis for achieving a society and sea
navigation that considers the needs of people and the environment. We
have expanded the focus of the FURUNO Group’s business activities fromoffering the values of safety, security and environmental consciousness toalso include comfort and humanity. This is a new marker for us as we move
forward in providing customers with greater value in our existingbusinesses and cultivate new businesses in associated fields.
Since the time of our inception in 1948, when we commercialized theworld’s first practical Fish Finder, the FURUNO Group has been fulfilling its
mission of solving social issues through our businesses.
Meanwhile, international society has gained a shared awareness of theUnited Nation’s Sustainable Development Goals (SDGs), and companies are
now being called on to contribute to realizing the SDGs through their businessactivities. The FURUNO Group will also actively incorporate SDGs into ourcorporate management and basic policy for business activities, while
carefully preserving the values we have cultivated since our foundation.
FURUNO GLOBAL VISIONNAVI NEXT

30%Phase

3Transform

Shareholders

Action Guidelines

FY 2026 - 2030

2026

Realize an appropriate corporate
scale, profitability and businessstructure

Environment

Human Resources andCorporate Culture Vision

Business Vision

24

New Business
Composition Ratio:

Business Theme

2020

120B
Operating Margin: 10%

Consolidated Net Sales: ¥Suppliers

Customers

2030

VALUE through GLOBALIZATION and SPEED
This is our key proposal for the focused strengthening andassessment of human resources, a valuable resource incorporate management, and corporate culture to achieve
our business vision. It comprises the following three points.

Phase

2023

Value - Creating greater value together

Globalization - Comprehensive globalization

Speed - Quick and agile decisions and action
We will not falter in the face of change, as we strive tocontinue creating a new era.

Phase

1

Advance
FY 2020 - 2022

2030

Mid-term Management Plan

See details onConnect
FY 2023 - 2025

We will cultivate a deep understanding of our vision andadopt a highly autonomous approach to achieving it. We willwork together with every FURUNO Group stakeholder tocreate even greater value in society.
We will foster a global mindset in our organization, andensure the optimal and maximum use of our internal andexternal resources to achieve our vision, irrespective of
their affiliated division, region, country, etc.

2

Procure resources and strengthen
our capabilities by improving thestructure of our businesses

Take action towards building a
profitable structure and thepillars of our technologies andbusinesses.26

P

Targets for FY 2025
•ROE (based onordinary income)

10% or higher*•Payout Ratio

30% or higher*Average ROE (based on ordinary income) for FY 2009 - 2017 of 6%

See details on.27

PTargets for FY 2022
•ROE (based onoperating income)

10% or higher*•Payout Ratio

30% or higher*Average ROE (based on operating income) for FY 2009 - 2017 of 5%

The realization of NAVI NEXT 2030 will be
divided into the above three phases.

25

01

Get to Know FURUNO

02

For Future Growth03

Business Strategy

04

Governance, Social and Environmental Reports

05

Together with Society

06

Financial and Non-financial Data

Mid-term Management PlanPhase

2 “Connect”

Review of Phaseof Mid-term Management Plan

In February 2023, FURUNO formulated the Mid-term Management Plan (Phase 2) for the three-year period
from FY 2023 to FY 2025. In Phase 2, we will complete the measures that were not achieved in Phase 1 toimprove profitability, and at the same time, we will secure profits by expanding sales. We will also promote
investments for future growth to enhance corporate value. In addition, we will strive to improve the ratio ofordinary income to shareholders’ equity.

Key Performance Indicators (KPI)

ROE (based on ordinary income)

10%or higher*

Payout Ratio

We have been working on Phase 1, which covers the three-year period from FY 2020 to FY 2022. In FY 2022,
the ROE was 3.0% and the dividend payout ratio was 58.5%.
*Average ROE (based on operating income) for FY 2009 - 2017 of 5%

Strengthening Capabilities and Improving Structure30%

Expenses due to inventory disposal and write-downs decreased by ¥617M with the optimized
production volume and tighter inventory control. However, inventories increased significantly due
to difficulties in parts procurement, causing production delays.

2 Further Increase in Quality Levelor higher*Average ROE (based on ordinary income) for FY 2009 - 2017 of 6%

Main Measures

1 Improvement in Profitability
Complete the measures of Phase 1, focusing on improving profitability by increasing thequality level, optimizing inventories, and optimizing the product development function and thecomprehensive manufacturing function.

2 Expansion of Sales
Provide high-quality services through remote management, promote DX for the marine field
focusing on digitalization, and invest resources in businesses with growth potential to further
generate resources for investment in growth.

3 Implementation of Sustainable Management
Aim to realize sustainable management by expressing a long-term policy that will guide ourfuture business, strengthening business creation through strategic investments, promptly
commercializing new and expanding businesses, investing in human resources, andpromoting diversity.

26of the Mid-term Management Plan

1 Stronger Inventory Control and Appropriate Inventory Levels

In FY 2025, FURUNO will build a management foundation that will enable it to sustain the following.

Targets forFY 2025

1 “Advance”

With the promotion of quality improvement activities and other initiatives across business units,
quality loss costs decreased by ¥433M compared to before the start of Phase 1. The number ofcomplaints also decreased, leading to improved customer satisfaction.

3 Optimization of Product Development Functions
In addition to cost reduction activities for current models, a cumulative cost reduction of ¥399M
was achieved during Phase 1, by streamlining development operations, including the use ofcommon design in new product development.

4 Optimization of Comprehensive Manufacturing Functions
FURUNO has worked to optimize production and purchased parts and materials at domestic andoverseas factories, and to automate production processes to establish a system to produce andship necessary goods at the necessary time and in the necessary quantity. However, production
delays caused by difficulties in obtaining parts have inconvenienced our customers.

5 New Strategic Investment Quota
FURUNO developed new businesses (aquaculture support business and construction techbusiness), invested in R&D, and worked on expanding current businesses. FURUNO also madeaggressive investments in M&A to strengthen its product development capabilities overseas andin the establishment of a new R&D building to consolidate its R&D departments.

27