3rd Quarter of Fiscal Year 2023 (Ending February 28, 2024)

Financial Results Briefing Materials
January 15, 2024

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.
*** “3Q” in this material represents the three-month period beginning on March 1 and ending on November 30.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of 3rd Quarter of FY 2023
◆Net Sales: Increase➢ Increase in sales in all regions for Marine business with continued
increase in production to catch-up high backlog and normalizedelivery dates◆Operating Profit: Increase➢ Gross profit increased with efforts to improve production
efficiency, price management, etc.
➢ Continued investment for growth to strengthen sales and service
structure◆Financial Results Forecast: Upward Revision➢ Better gross profit margin due to efforts to improve profitability* Foreign Exchange Sensitivity (actual results for FY 2023)[USD] Net sales: 130M yen, Operating income: 50M yen[EUR] Net sales: 180M yen, Operation income: 90M yen
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Increase in sales in all regions for Marine business
Better profit margin due to efforts to improve profitability(Unit: Millions of yen)

Net Sales
Gross Profit(Sales ratio)

SG&A Expenses(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)

FY 2022
3rd Quarter

FY 2023
3rd Quarter

Year-over-Year(amount)

Year-over-Year(ratio)64,97982,506+17,526+27.0%

25,25232,406(38.9%)(39.3%)+7,154+28.3%

23,92725,978(36.8%)(31.5%)+2,050

+8.6%

1,324

6,428

(2.0%)(7.8%)+5,104+385.4%+5,435+235.7%+4,852+380.0%

+143

+3.5%

+282

+14.4%+255+11.3%

2,306

7,742

(3.5%)(9.4%)

1,276

6,129

(2.0%)(7.4%)

4,119

4,263

(6.3%)(5.2%)

1,962

2,245

(3.0%)(2.7%)

Depreciation Expenses

2,260

2,515

(Sales ratio)(Unit: Yen, annual average exchange rate)(3.5%)(3.0%)

1 USD

125

138+13+10.3%

1 EUR

136

150+14+10.4%

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales
900

Increase in sales in all regions for Marine business mainly in merchant vessels
Increase in sales for Industrial Business in Defense Equipment(Unit: 100 Millions of Yen)

Industrial Business

Others Business+18.2-0.4

Marine Business+163.7850

800

WirelessLAN Systems

Europe+51.2

750

Japan+1.1

700

OtherRegions+10.2

Americas
+14.4

650

Asia+51.9

600

Foreign
Exchange
Impact+35.1

-6.2

825

650
550

FY 2022
3rd Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Net Sales+175.3

FY 2023
3rd Quarter
4

Analysis of Increase/Decrease in Gross Profit
Increase in gross profit with increase in sales for Marine businessand efforts to improve profitability which compensate higher cost

370

340

Sales
Increase
+49.1

310

Improved
Production
Capacity+4.2

PriceManagement,etc.
+11.7

improve profitability
+15.9

280

ForeignExchangeImpact+25.0

Components
Cost Increase

IndustrialBusiness
Sales Increase+4.1(Unit: 100 Millions of Yen)

WirelessOthers
LAN Systems-2.0
Sales Decrease, etc.
-4.4

-16.0

250

253
220324
Marine Business +74.0

FY 2022
3rd Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit+71.5

FY 2023
3rd Quarter
5

Analysis of Increase/Decrease in Operating Profit
Significant Increase in profit with higher gross profit in Marine business,despite increase in SG&A expenses with strengthening of sales and service structure
120110

Expense Increase
with Personnel
Increase, etc.

Marine Business
Gross Profit Increase
+74.0

100

(Unit: 100 Millions of Yen)

-12.69080

IndustrialBusiness
Gross Profit
Increase+4.1706050

WirelessLAN Systems
Gross ProfitDecrease-4.4

R&D Expenses
Increase Foreign Exchange-1.4

Impact on SG&A

-8.5

40
30
20
10064

13
FY 2022
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Operating Profit+51.0

FY 2023
3rd Quarter
6

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

■Japan■Europeアジア■Asia ■Other日本 ■Americas
米州
欧州
その他
70051600
500
4003241124123183

2001001551636969Segment Profit 65.9 100M yen (+51.4 100M yen)⚫
⚫
⚫

Initiatives to eliminate high level of orders backlog
Price management, etc., and yen depreciation
Continued selection of projects based on profitability◆Japan: Net sales 145 100M yen (+0.7%)◆Americas: Net sales 92 100M yen (+32.3%)➢ Increase in sales for Pleasure boats
and Fishery market

92

142

144

145

FY 2021
3rd Quarter

FY 2022
3rd Quarter

FY 2023
3rd Quarter

0FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Marine Business
Net Sales 705 100M yen (+30.3% year-over-year)➢ Steady sales for Merchant newbuild projects➢ Improvement in sales for Fishery market
233300“100M” stands for 100 Million◆Europe: Net sales 233 100M yen (+43.0%)➢ Expansion in sales for Merchant, Fisheryand Pleasure boats➢ Steady increase in sales of maintenance services◆Asia: Net sales 183 100M yen (+48.6%)➢ Steady sales for Merchant newbuild projects
7

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

■OEM, ETC, etc.
■Healthcare■Defense Equipment ■Wireless LAN Systems“100M” stands for 100 Million

Industrial Business
Net Sales 94 100M yen (+23.8% year-over-year)
Segment Profit +2.9100M yen (+3.0 100M yen)
⚫

120

24100

25
9

◆OEM, ETC, etc.: Net sales 49 100M yen (+10.8%)30➢ Decrease in sales for OEM products➢ Increase in sales for ETC and GNSS products

26

80

60

Increase in sales and profit for each sector ofIndustrial business◆Healthcare: Net sales 20 100M yen (+22.4%)

161517➢ Increase in sales for clinical chemistry analyzers

20◆Defense Equipment: Net sales 26 100M yen (+61.1%)

40

20

52

4449

Wireless LAN Systems
Net Sales 24 100M yen (-20.7% year-over-year)
Segment Profit -0.6 100M yen (-4.0 100M yen)

0FY 2021
3rd Quarter

FY 2022
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2023
3rd Quarter⚫

Decrease in sales for wireless LAN access pointin the education market
8Forecast for FY 2023: Upward Revision
Efforts to improve profitability andexpected firm demand environment in the Marine business
FY 2022

FY 2023

FY 2023

Results

Previous Forecast

Revised Forecast

Net Sales

91,325

105,000

105,000

Operating Profit

1,523

5,000

6,000

(1.7%)(4.8%)(5.7%)

2,593

6,0007,000(Sales ratio)(2.8%)(5.7%)(6.2%)

Profit Attributableto Owners of Parent

1,348

4,5005,000(Sales ratio)(1.5%)(4.3%)(4.8%)(Unit: Millions of yen)

(Sales ratio)

Ordinary Profit

The dividend forecast is left unchanged
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202210152558.5%

FY 2023202545

28.4%(Unit: yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: Consolidated Balance Sheet
Full Year FY 2022

3rd Quarter FY 2023

Current assets

82,28088,074(Cash and deposits)(Inventories)(15,376)(40,694)(12,494)(46,903)

Fixed assets

24,11625,873(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,914)(4,034)(6,167)(14,502)(4,428)(6,942)

Total assets

106,396

113,947

Current liabilities
Long-term liabilities

37,525
16,36839,27913,725

Total liabilities

53,89353,004

Shareholders’ equity
OthersNon-controlling interests

50,0232,089
389

55,075
5,476
391

Total net assets

52,50360,943

Total liabilities and net assets

106,396

113,947

Equity ratio

49.0%

53.1%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Topics

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

Topics
Advertisement on trains and stations in Hanshin Railway
Our corporate advertisement series “We Want You to
Know FURUNO” to promote our attractiveness and familiarity
The advertisements including new version are displayed on
media in the Hanshin Railway facilities which connect Hyogo and Osaka.
It has been started from January 2024 and can be found at Hanshin Nishinomiya station(the nearest station from our head office) and other stations between Osaka Umeda and Sanyo Himeji.

Sticker above train doors

Kobe Sannomiya station*

Hanshin Umeda station**for illustration purposes only

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

12Topics
Participation in the second stage of the Nippon Foundation's
Unmanned Vessel Project: Social Implementation
Program Overview
1. Demonstration Experiment
Design next-generation vessels and conduct ship-land operation
demonstrations envisioning the future coastal shipping industry.
2. Standardization of developed technologies
Refine the unmanned ship operation technologies developed in the firststage and standardize them internationally.
3. Reinforcement of development process infrastructure

Advance simulation technology and generalize risk assessment based on
the development process infrastructure established in the first stage.
4. Social implementation
Commercialize the automatic navigation and establish a certification
scheme necessary for commercialization.
FURUNO Initiatives
Autonomous navigation functions on board the vessel: information
recognition, automatic navigation avoidance, etc.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

13Topics
FURUNO dominates 2023 NMEA Product of Excellence Awards
About NMEA (National Marine Electronics Association)
The awards are given every fall to the products with the best design, performance, and reliability among marine
electronic equipment released that year. FURUNO has received the NMEA Best Manufacturer Award in the "FishFinder Category" for 53 consecutive years since 1971.
FURUNO’s awards at the 2023 NMEAAwards in other categories*
Radar
NMEA2000 Sensor
Fish Finder
Marine Software
Commercial
Best New ProductMarine Specialty*

Fish Finder

Scanning Sonar

FCV-800

CSH-8L MARK-2

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

*: consecutive awards for
multiple years
14Topics
Publishment of FURUNO’s Integrated Report 2023
Toward a sustainable society and further corporate value
This report focuses on our business vision "Achieve better safety, security
and comfort to bring about a society and sea navigation that considers theneeds of people and the environment," and introduces our vision andefforts to realize a sustainable society.

We will continue to promote constructive dialogue with our stakeholders
and aim to further enhance our corporate value through better information
disclosure in this Integrated Report and on our website.
For details, please refer to the "Integrated Report" page on our officialwebsite.
https://www.furuno.co.jp/en/csr/report/

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

15

FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16

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, 2023

Nishinomiya Headquarter

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

3,310 (consolidated)

Consolidated Sales¥91,325 million

President

Yukio Furuno

Stock Exchange
Listing

Tokyo Stock Exchange,Prime Section

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/
17

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 Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasoundBone
Densitometer

ClinicalChemistry
Analyzer

ETC18

FURUNO’s Marine BusinessFor Merchant Vessels

ECDIS(Electronic Chart Displayand Information System)

RadarSatellite 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
19

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 Densitometer

Wireless LAN Systems

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

Wireless Handheld Terminal**Japanese market only20