2nd Quarter of FY 2/2021

Financial Results Briefing Materials
October 13, 2020

Points to Note:

This document is a translation of the Japanese original. The Japanese original is authoritative.
The information listed in these materials the Company’s future prospects as determined by management, based on the information
available at the time of announcement, and potential risks and uncertainties. It should be noted that the actual results may differ
substantially from these forecasts, due to these various elements.
The numerical values shown in these materials are the monetary amounts listed in the consolidated balance sheet, consolidated profitand-loss statement, consolidated statement of changes in shareholders’ equity, and notes to consolidated financial statements. Shownvalues of less than one unit are truncated, and ratios and other values are rounded off.
***

“FY” in this material indicates the fiscal year ending February 28(29) of the succeeding year.
“2Q” or “2nd Quarter” in this material represents the six-month period beginning on March 1 and ending on.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2/2021 2nd Quarterly Points of the Results

 Performance: Decrease in sales and profit
Revenue and profit decreased due to factors such as the impact of
economic stagnation associated with measures for stopping thespread of the novel coronavirus infection COVID-19.
However, business started to recover during the 2nd quarter (June toAugust).

 Full-year earnings forecast: Upward revision
Based on actual results in the 2nd quarter and the outlook forbusiness conditions, we have revised upwards the net sales andprofit figures announced on August 19. We have left the annual
dividend forecast as is.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

FY 2/2021 2nd Quarterly Results Highlights
Unit: Millions of Yen

Net sales
Gross profit

FY 2/2020
2nd Quarter

FY 2/2021
2nd Quarter

Year-over-year( amount )Year-over-year( ratio )

43,04015,55739,274
14,553-3,765-1,004

-8.7%
-6.5％

1,667-630-27.4%-474-19.5%-29.3%( Sales ratio )( 36.1% )( 37.1% )( Sales ratio )( 5.3% )( 4.2% )( -1.1 )( Sales ratio )( 5.6% )( 5.0% )( -0.6 )2,188

1,546-642( 5.1% )( 3.9% )( -1.2 )2,234

2,353＋120＋5.4%＋42.7%

Operating income
Ordinary income
Profit attributable toowners of parent( Sales ratio )R&D expenses( Sales ratio )Capital investment
expenses( Sales ratio )Depreciation expenses( Sales ratio )

2,297
2,430

1,956

( -1.0 )（5.2%）( 6.0% )( +0.8 )1,028

1,467＋439（2.4%）( 3.7% )( ＋ 1.3)（3.6%）

111
124

1,562

1,540

( 3.9% )-22( ＋0.3 )-1.4%

109120-2-5-2.0%-3.7%

Unit: Yen, annual average exchange rate

1USD1EURFURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales(Unit: 100 Millions of Yen)

“100M” in this material indicates 100 Million

440

430

Japan

420

-2.7

America-0.4

Wireless

Europe

410

-5.6

LAN
Systems

＋7.7

400

430.4

Asia

-20.6

390

Healthcare

OtherRegion Foreign＋0.7-2.2 Exchange
Effect380

Marine Business- 36.7370

360

FY 2/2020
2nd Quarter

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-5.2PNT-7.9

Others

-1.5IndustrialBusiness-8.7*Exchange Rate Sensitivity (actual results as of February 29, 2020)[USD] Net sales 1.1 100M yen , Operating income 0.5 100M yen[Euro] Net sales 1.6 100M yen , Operating income 0.7 100M yen

392.7

FY 2/2021
2nd Quarter

4

Analysis of Increase/Decrease in Operating income
A fall in revenue in the Marine Business and the impact of a decline in profits associated with strategic
investments and other factors were covered to some extent by a rise in revenue in Wireless LANSystems and a decrease in sales, general, and administrative expenses, etc.

（Unit: 100 millions of Yen）
25

Wireless LAN
Systems
Gross profit
MarginIncrease

2023.0MarineBusiness
Net sales
Decrease-13.6

0Industrial BusinessNet sales Decrease

FY 2/2020
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

-2.1＋7.5＋1.0

16.7

Others

＋0.8

-0.6

105

Industrial
Business
Gross profit
marginIncrease

MarineBusiness
Gross profit
marginDecrease

15

Other
SG & A expenses
decrease-0.3

Wireless LAN
Systems
Sales Increase

Strategicinvestment-3.6＋4.7

Operating income-6.3※ Foreign exchange impact on operating income: -2.4 100M yen

FY 2/2021
2nd Quarter
5Analysis of Operating Income(Increase/Decrease Comparison in Same Business Year)
Smaller decline in profits in the Marine Business, and a substantial rise inprofits in Wireless LAN Systems（Unit: 100 millionof Yen）

1st Quarter period
2nd Quarter period
Increase/Increase/
FY 2/2020 FY 2/2021 Decrease FY 2/2020 FY 2/2021 Decrease( ratio )( ratio )Marine Business

626

50-576921

516(-92.0%)（-43.9％)IndustrialBusiness144

Wireless LANSystems-13Others

21-7-28

3255

23779

2-777

1,5181,665147

Total

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56-405-88

2146（-61.1％)-98-85(119.0%)543

1,047-（-99.7％)

25504(92.8%)(9.7%)

6

Overview of Marine BusinessNet sales by Marine Business/Sales by Region（Unit: 100Millions of Yen)

400300

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

15
86

200

1000964215
98

914093105

2019年2月期
FY 2/2019
第２四半期
2ndQuarter2020年2月期
FY 2/2020
第２四半期
2nd Quarter

13778239102“100M” in this material indicates 100 Million

Marine Business：Net sales 312 100M yen（-10.5％ year on year）
Segment Profit 5.7 100M yen（-9.8 100M yen）

⇒ Most of the fall in revenue and subsequent
decrease in profits were in Asia and Europe;
however, business started to recover during the2nd quarter

Japan: Net sales 102 100M yen （-2.6%）

 Business started to recover during the 2nd quarter,and performance remains at the previous year’slevels

America: Net sales 39 100M yen （ -2.3%）

 The impact of the novel coronavirus was limited,and performance remains at the previous year’slevels

Europe: Net sales 82 100M yen （-10.2%）

 Revenue fell due to the impact of foreign exchange
and the novel coronavirus; however, the decline
stopped during the 2nd quarter

Asia: Net sales 77 100M yen （-22.0%）

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2021年2月期
FY 2/2021
第２四半期
2nd Quarter Revenue fell mostly due to the impact of reduced
operations at manufacturing sites during the 1stquarter; however, business started to recover
during the 2nd quarter

7

Overview of Industrial Business, Wireless LAN Systems
Net sales by Industrial Business& Wireless LAN Access Point/ Sales by Products（Unit: 100 Millions of Yen)

90■Wireless LAN Systems■Other Industrial■Healthcare■PNT202278996030610Industrial Business:
Net sales 49 100M yen （-15.0％ year on year）
Segment profit 1.0 100M yen（-0.6 100M yen）
⇒ PNT Business recorded a fall in sales of ETC onboard devices, due to factors such as refraining
from long-distance travel as a result of thenovel coronavirus⇒ Healthcare recorded strong sales of clinicalchemistry analyzers

PNT Business: Net sales 33.0 100M yen (-19.3%）
Healthcare: Net sales 9.8 100M yen（+7.7%）

Wireless LAN Systems:304241Net sales 30.1 100M yen （＋38.5％ year on year）

33

Segment profit 9.5 100M yen （＋4.2 100M yen）
⇒ Wireless LAN Access Point sales grew0

2019年2月期
FY 2/2019
第２四半期
2ndQuarter2020年2月期
FY 2/2020
第２四半期
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2021年2月期
FY 2/2021
第２四半期
2ndQuarter

substantially in the educational market, where
the Global and Innovation Gateway for All(GIGA) school project is being promoted⇒ Substantial rise in both revenue and profit
8

Awareness of the business environment after 3rd Quarterof FY 2/2021Marine Business【Merchant Vessel】 Will remain weak
【Fishing Vessel】 Already recovering overall, even with
the impact of temporary economic stagnation【Pleasure Boat】 Benefiting from a strong global
pleasure boat market

Industrial Business【PNT】 ETC on-board devices are recovering Timesynchronization and other markets are generally strong【Healthcare】 Not particularly impacted by the novel
coronavirus【Other Industrial】 Generally performing as planned

Wireless LANSystems【Wireless LAN Access Point 】 Substantial growth indemand this period coming from the GIGA schoolproject【Handheld Terminal】 Some customer-based variability,
but generally slow growth

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Full year earnings forecast and dividend forecast
of FY 2/2021
Based on the cumulative actual results of the 2nd quarter and ourunderstanding of business conditions from the 3rd quarter onwards, we haverevised upwards our previous forecasts (announced on August 19, 2020)
FY 2/2021
Last forecast

FY 2/2021
Forecast this time

Increase/
Decrease( amount)

Increase/
Decrease( ratio)

Net sales

79,00082,000＋3,000＋3.8%

Operating income

1,500

3,000＋1,500＋100.0%( 1.8% )( 3.6% )( ＋1.8 )

2,000

3,500

＋1,500( Sales ratio )( 2.5% )( 4.2% )( ＋1.7 )Profit attributable toowners of parent( Sales ratio )

1,500

3,000

＋1,500( 1.9% )( 3.6% )( ＋1.7 )（Unit: 100 Millions of Yen)

(Sales ratio )Ordinary income＋75.0%＋100.0%

Dividend forecast
End of 2ndQuarter

Year end

Year roundFY 2/2020

101020FY 2/2021 forecast

101020（Unit: Yen）

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Consolidated
payout ratio30.9%
21.0%

10Corporate Profile

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11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 of ultrasonic and electronics technologies, FURUNO
has developed a wide array of products that have been world firsts and Japanfirsts.
As of Feb 29, 2020

Company Name
Headquarters
Incorporated

FURUNO ELECTRIC CO., LTD.
Nishinomiya City, Hyogo, JapanMay 23, 1951

Business

Manufacturing and sale ofmaritime and industrial electronic
products

Paid-in Capital¥7,534 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/
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

12

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 PointRadar

GPS/GNSS
Receiver for Car
Navigation
SystemVoyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

UltrasoundBone
Densitometer
ClinicalChemistry
Analyzer

ETC13