1st Quarter of Fiscal Year 2022 (Ending February 28, 2023)

Financial Results Briefing Materials
July 14, 2022

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 forecasts are determined by management, based on the information available at the time ofannouncement, 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 2022
◆Net Sales: Increase➢ Addition of consolidated overseas subsidiaries◆ Profit: Decrease➢ Profitability of Marine Business improved despite soaring
material prices➢ Continuous investment for future growth◆ Whole Company➢ Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29) is applied from first quarter of thisfiscal year
Impact of change in accounting standard◼ Net Sales: -1.1 100 millions of yen◼ Operating Profit: -0.7 100 millions of yen
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Profitability of Marine Business improved despite soaring material prices
Investment for future growth
New Revenue Recognition
Old Revenue Recognition(Unit: Millions of yen)

FY 2021
1 Quarter

FY 2022
1 QuarterYear-over-Year(amount)

Year-over-Year(ratio)

FY 2022
1 Quarter

Net sales
Gross profit

20,837
8,110

21,319

+481

+2.3%

21,2058,209(38.5%)

+1.2%

8,140

(38.9%)

+98

1,209

283

(5.8%)(1.3%)-926-76.6%

1,412

683(6.8%)(3.2%)-728-51.6%

1,038

554-483-46.6%(5.0%)(2.6%)

1,232

1,271

(5.9%)(6.0%)

1,466

866(7.0%)(4.1%)

763

834(3.7%)(3.9%)

104
128

115
131

st

(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

R&D expenses(Sales ratio)

Capital investment(Sales ratio)

Depreciation expenses(Sales ratio)

stst(38.4%)

214(1.0%)

615(2.9%)

486(2.3%)+38+3.1%

1,271-599-40.9%

866

+70

+9.3%

+10+3

+10.0%+2.5%(6.0%)(4.1%)

834(3.9%)(Unit: Yen, annual average exchange rate)

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

115
131
3Analysis of Increase/Decrease in Net Sales
Addition of consolidated overseas subsidiaries in Marine and Industrial Businesses
225(Unit: 100 Millions of Yen)

Consolidated
Subsidiaries

Sales
220

MarineBusiness
Domestic
Net Sales
Increase+1.0

215

Industrial
Business
Net Sales Increase+0.8

Marine Business
Consolidated
Subsidiaries+3.6210

205

200

208

MarineBusinessInternational
Net Sales Increase+2.0

WirelessLANSystems
Net Sales
Decrease-3.6Other
Business+0.0

Revenue
Recognition-1.1

Industrial
Business
Consolidated
Subsidiaries
+1.4

213

212195FY 2021
1st Quarter
Old Recognition
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Sales

+4.8

FY 2022
1st Quarter
Old Recognition

FY 2022
1st Quarter
New Recognition
4

Analysis of Increase/Decrease in Gross Profit on Sales
Profitability in Marine Business improved despite soaring component prices
95(Unit: 100 Millions of Yen)

MarineComponent
PricesProfitability
Improvement Increase

Marine90+2.9-3.1

MarineSales
Increase

85

IndustrialSales
Increase+1.0

WirelessLAN SystemsSales Decrease, etc.

-3.0
Revenue
Recognition
-0.7

+1.2

80

81

Industrial
Decrease inInventory-RelatedExpenses, etc.
+1.1

MarineConsolidated
Subsidiaries+1.6

Others
-0.4

82

81

⚫ Decrease in inventory-related expenses⚫ Decrease in quality loss costs etc.

75

FY 2021
1st Quarter
Old Recognition

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit on Sales+1.0

FY 2022
FY 2022
st1 Quarter
1st Quarter
Old Recognition New Recognition5

Factors Increasing SG&A Expenses

Continue to accelerate investment for future growth
Addition of consolidated overseas subsidiaries+2.0

Increase in R&D expenses, etc.

+1.2

Strategic investments, etc.

+1.0

Increase in promotion expenses (exhibitions in new fields), etc.

+2.5

Increase in business-related expenses+2.5

Increase in logistics costs+0.3

Others+0.7
Increase in consolidated SG&A expenses

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+10.3
6

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

200150

日本 ■Americas
米州
欧州
その他
■Japan■Europeアジア■Asia ■Other

650

Segment Profit 5.5 100M yen (-4.6 100M yen)⚫
⚫
⚫
⚫

Merchant newbuild orders on the recovery
Steady demand for Merchant replace and Fishery
Steady increase of demand for Pleasure Boats
Decrease in Profit due to increase in promotion
expenses and addition of consolidated subsidiaries

841

37

49

55

◆Japan: Net sales 53 100M yen (-2.8%)

20

20◆Americas: Net sales 20 100M yen (-3.0%)

41

20

Change in accounting standard
Marine Business:
Sales: -2.7, Profit: -0.8 (100M yen)
Net Sales 176 100M yen (+2.0% year-over-year)

1234
100

“100M” stands for 100 Million➢ Decrease in sales of equipment for Fishery,
increase in sales to Government➢ High demand for equipment for pleasure boats

495553

FY 2019
1st Quarter

FY 2020
1st Quarter

FY 2021
1st Quarter0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

◆Europe: Net sales 55 100M yen (+11.3%)➢ Strong sales in all markets: Merchant,
Fishery and Pleasure Boats◆Asia: Net sales 37 100M yen (-9.3%)➢ Decrease in sales of equipment for Fishery,
Merchant newbuild projects still recovering

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

40

■OEM, ETC, etc. ■Healthcare■Other Industrial ■Wireless LAN Systems

83063205101611“100M” stands for 100 MillionIndustrial Business:Net Sales 27 100M yen (+16.1% year-over-year)
Segment Loss 0.3 100M yen (+1.5 100M yen)
⚫
⚫
⚫

53317

517

FY 2019
1st Quarter

FY 2020
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2021
1st Quarter

Decrease in sales of ETC on-board units
due to decline in automobile sales
Increase in sales of OEM contract products
Health Care Business: Steady sales of analyzers
and reagents in Southeast Asia; increased overseas
sales of bone densitometers◆OEM, ETC, etc.: Net sales 17 100M yen (-3.3%)◆Healthcare: Net sales 5 100M yen (+56.4%)
in accounting standard
Wireless LAN Systems: Change
Sales: -0.0, Profit: -0.0 (100M yen)

Net Sales 8 100M yen (-31.0% year-over-year)
Segment Loss 0.0 100M yen (-3.5 100M yen)⚫

0Change in accounting standard
Sales: +1.6, Profit: +0.1 (100M yen)

Wireless LAN Access Point: end of special
demand for GIGA School, which continued until
March of previous FY8Consolidated Balance Sheet
FY 2021 FY
Old Revenue
Recognition

FY 2022 1Q
New Revenue
Recognition

Current assets

62,01067,155(Cash and deposits)(Inventories)(14,350)(27,693)(14,064)(30,398)

Fixed assets

23,963

23,772(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,400)(4,276)(6,286)(13,737)(4,243)(5,791)

Total assets

85,97390,887

Current liabilities
Long-term liabilities

25,02313,06827,817
12,991

Total liabilities

38,09240,808Shareholders’ equity
OthersNon-controlling interests

48,795-914
049,446338294

Total net assets

47,88050,079Total liabilities and net assets

85,97390,887

Equity ratio

55.7%

54.8%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Appendix: Corporate Outline
Since 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, 2022

Nishinomiya Headquarter

New R&D Building SOUTH WINGFURUNO ELECTRIC CO., LTD. All Rights Reserved.

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 3,065 (consolidated)
Consolidated Sales¥84,783 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/
11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 Point

Radar
Voyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasoundBone
DensitometerClinical
Chemistry
Analyzer

ETC12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
13

Appendix: FURUNO’s Industrial Business
OEM, ETC, etc.

ETC2.0 / ETC *ETC, Vehicle
Management Solution*

GPS / GNSS
Chips & Modules

Healthcare

Clinical Chemistry Analyzer & Reagent

Ultrasound Bone DensitometerWireless LAN Systems

Wireless LAN Access Point*
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Wireless Handheld Terminal**Japanese market only14