Fiscal Year 2020 (Ended February 28, 2021)

Financial Results Briefing Materials
April 14, 2021

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 future prospects are determined by management, based on the information available at the timeof announcement, 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, “2Q” represents the six-monthperiod beginning on March 1 and ending on August 31,“3Q” represents the nine-month period beginning on March 1 and ending on
November 30, and ”4Q” represents the twelve-month period beginning on March 1 and ending on February 28 (29).
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Consolidated Income Statement
Increase in Gross profit even with decrease in Net sales. Significant increase in Operating income.
Also investments for future growth.
(Unit: Millions of yen)

FY 2019

FY 2020

Year on Year(amount)

Year on Year(ratio)

Net sales
Gross profit

83,06628,52482,255-811-1.0%

30,839+2,315(34.4%)(37.5%)(+3.2)

+8.1%

2,411

3,740

+1,329(2.9%)(4.5%)(+1.6)

2,702

4,779

+2,077(3.3%)(5.8%)(+2.6)

2,041

3,946

+1,905(2.5%)(4.8%)(+2.3)

4,266

5,303

+1,037(5.1%)(6.4%)(+1.3)

3,245

4,235

+990

(3.9%)(5.1%)

(1.2)

3,246

3,160

-86

(3.9%)(3.8%)(-0.1)

110
123

107
122

-3-1

(Sales ratio)

Operating income(Sales ratio)

Ordinary income(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

R&D expenses(Sales ratio)

Capital investmentexpenses(Sales ratio)

Depreciation expenses(Sales ratio)+55.1%+76.8%+93.3%+24.3%+30.5%-2.6%(Unit: Yen, annual average exchange rate)

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

-2.3%
-0.4%
2

Analysis of Increase/Decrease in Net Sales
Decrease in Sales for Marine Business and Industrial Business.
Significant increase in Sales for Wireless LAN Systems.
(Unit: 100 Millions of Yen)

880WirelessLANSystems860

America+2.7840+44.1
OtherRegions+1.7820

Japan-11.7

800

780

Others+0.6

Europe-11.1
Asia-19.9760

Foreign
ExchangeImpact-4.9740830

PNT Healthcare
-8.4
-1.0

720

Marine BusinessIndustrial Business

700-43.1-8.8

FY 2019FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Wireless
LANSystems

822

+44.1

FY 20203

Analysis of Increase/Decrease in Gross Profit on Sales
Increase in Gross profit on sales mainly due to increase in Profit for
Wireless LAN Systems and the result of Business Structure Improvement.
(Unit: 100 Millions of Yen)

330

310

Wireless
LAN Systems+26.6

Net Sales
Increase inMarine
Business-15.9
290Foreign
Exchange
Impact-2.6

Business
Structure
Improvementfor Marine
Business+5.7

Net Sales
Decrease inIndustrial
Business-1.4

Business
Structure
Improvement
for Industrial
Business

Others
+5.1

+5.7

270

308

285
Gross Profit on Sales

250

FY 2019FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+23.1

FY 20204

Analysis of Increase/Decrease in Operating Income
Increase in Operating income due to increase in Gross profit on sales
and decrease in Expenses.
(Unit: 100 Millions of Yen)

60
Decrease inExpenses+1.450-12.830-1.0

Gross Profit on
Sales Increasein IndustrialBusiness

R&D Expenses
Increase in
Marine Business-6.8+4.3

2024

Foreign Exchange
Impact on SG&AExpenses-2.0

Gross Profit on
Sales Decrease in
Marine Business

4010

R&D Expenses
Increase in
Industrial Business

R&D Expenses
Increase in
Wireless LAN Systems

Others+5.5-1.9

Gross Profiton Sales Increase in
Wireless LAN Systems

37+26.60

FY 2019FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit in Operating Income+13.2

FY 2020
5Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)800

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

2917727186

28165500

188

184

172

300

100

Significant decrease in sales and profit formerchant vessels due to a slump in new-buildmarket

Japan: Net sales 184 100M yen (-6.0%)
 Limited impact of COVID-19 on demand
for fishery market

400

200

Marine Business:
Net Sales 629 100M yen (-6.4% year on year)
Segment Profit 7.4 100M yen (-12.2 100M yen)
700

600

“100M” stands for 100 Million

838181

188

195

184

FY 2018

FY 2019

FY 2020

0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

America: Net sales 81 100M yen (-0.2%)
 Increase in demand for Pleasure Boats growing
faster than before COVID-19

Europe: Net sales 172 100M yen (-6.4%)
 Decrease in fishing and existing merchant vessels
demand, but on the recovery

Asia: Net sales 165 100M yen (-11.3%)
 Significant decrease in sales for merchant vessels
due to a slump in new-build market
6Overview of Industrial BusinessIndustrial Business Consolidated Sales(by Product)(Unit: 100 Millions of Yen)

140

ヘルスケア
PNT ■Healthcare■PNT■Other産業用その他
Industrial“100M” stands for 100 Million

Industrial Business:
Net Sales 108 100M yen (-6.7% year on year)
Segment Profit 3.2 100M yen (+6.0 100M yen)
120

20100

2123211780

Decrease in sales for automotive market due toeconomic activities restriction in Q1 caused by
COVID-19
Increase in revenue due to removal of inventoryrelated costs during previous fiscal year

16
PNT Business: Net sales 70 100M yen (-10.8%)6040777870

200FY 2018

FY 2019FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020

 Decrease in sales for ETC on-board devices,
but on the recovery since Q2
 Increase in sales for frequency generators

Healthcare: Net sales 16 100M yen (-5.4%)
 Although a decrease in OEM sales for biochemicalanalyzers, increase in sales for own-brand products,
including reagents, resulting in only a slight decreasein sales
7Overview of Wireless LAN Systems
Wireless LAN Systems Consolidated Sales“100M” stands for 100 Million(Unit: 100 Millions of Yen)

100

Wireless LAN Systems:
Net Sales 82 100M yen (+115.4% year on year)
Segment Profit 27.6 100M yen (+21.0 100M yen)

806082402033



Rapid increase in demand for wireless LAN accesspoints for education market in correlation with theGIGA School Initiative, which promotes the shift toICT in education
Significant increase in profit due to significant
increase in sales

380

FY 2018

FY 2019FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2020
8Target Management Indicators (KPI)
Goal: Build a management foundation that can stably achieve the followings for FY 2022

FY 2020
ResultsROE(based on operating income)Payout Ratio

8.6%
31.9%

FY 2022
Goals10%or higher30%or higher

Continue to aim for our goals by executing “Major Initiatives to Improve andStrengthen our Business Structure” and “Individual Business Strategies” set forth in
the mid-term management plan

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Consolidated Financial Results Forecast for FY 2021
Sales decrease for Wireless LAN Systems, but recovery in Marine Business, sales increase
for Industrial Business and effect of Major Measures, resulting in growth in sales forecast
FY 2020
Results

FY 2021ForecastNet sales

82,25584,000Operating income

3,740

2,500

(4.5%)(3.0%)

4,779

3,000(5.8%)(3.6%)

3,946

2,500(4.8%)(3.0%)(Unit: Millions of yen)

(Sales ratio)

Ordinary income(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

Decrease in dividend, but Payout Ratio forecast over 30%
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202110304031.9%

FY 202210152531.5%(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10

Results Forecast by Segment
Net Sales for Marine Business(by Region)

FY 2021 Forecast(Unit: 100 Millions of Yen)800

日本 ■America米州
欧州
アジア
その他
■Japan■Europe■Asia ■Other700

600

27186

“100M” stands for 100 Million

Marine Business:
Net Sales 680 100M yen
Segment Profit 17 100M yen

3128165185500

Japan: Net sales 195 100M yen
 Promotion of high-value-added systems to support
resource management in fisheries

America: Net sales 81 100M yen
400

184172

188

300

200

1008181

81195

184

195

FY 2019

FY 2020

FY 20210
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

 Expansion of sales for Pleasure BoatsEurope: Net sales 188 100M yen Recovery expected for fishing and existing merchantvessels demandAsia: Net sales 185 100M yen Recovery of demand for new-build ships in line withincrease in marine transport volume, and response tovarious upfront investments in the shipping andshipbuilding industries
11Results Forecast by Segment
Net Sales for Industrial Business& Wireless LAN Systems (by Product)(Unit: 100 Millions of Yen)

“100M” stands for 100 Million

Industrial Business:
Net Sales 118 100M yen
Segment Profit 3 100M yen

無線LAN・ハンディターミナル■WirelessLAN Systems
産業用その他■OtherIndustrial■Healthcare
ヘルスケア■PNTPNT200

FY 2021 Forecast

PNT Business: Net sales 75 100M yen
160823842

Healthcare: Net sales 22 100M yen

120

8040

 Provision of attractive solutions that use ourstrengths of technologies, such ascommunications and GNSS

211778231670222275

 Sales expansion, especially in Southeast Asia
“100M” stands for 100 Million

Wireless LAN Systems:
Net Sales 42 100M yen
Segment Profit 5 100M yen
Expansion in new markets other than education

0FY 2019

FY 2020FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 202112

Appendix: Consolidated Balance Sheet
Decrease in Inventories due to Inventory Reduction Initiatives.
(Unit: Millions of yen)

FY 2019

FY 2020 YoY (amount)

YoY (ratio)

Current assets

56,47760,770+4,293+7.6%(Cash or equivalents)(Inventories)(12,143)(25,066)(15,301)(24,028)(+3,158)(-1,038)(+26.0%)(-4.1%)

Fixed assets

19,655

21,478+1,823+9.3%(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(10,152)(4,195)(5,307)(11,184)(4,645)(5,648)(+1,032)(+450)(+341)(+10.2%)(+10.7%)(+6.4%)

Total Assets

76,13382,248+6,115+8.0%

Current liabilities
Long-term liabilities

22,42911,45922,93013,626+501+2,167+2.2%+18.9%

Total Liabilities

33,88936,556+2,667+7.9%

Shareholders’ equity
OthersNon-controlling interests

45,004-3,079
319

48,333-2,973
332+3,329
106+13+7.4%
+3.4%
+4.1%

Total Equity

42,24445,692+3,448+8.2%

Total Liabilities and Equity

76,13382,248+6,115+8.0%

Equity Ratio

55.1%

55.1%+0.0P

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

13

Appendix: Consolidated Cash Flow Statement
Increase in Cash Flow from Operating Activities due to increase in Profit.
Increase in Cash Flow from Investing Activities due to new R&D Work Space Construction.
(Unit: Millions of yen)

Cash Flowfrom Operating Activities
Cash Flowfrom Investing Activities
Free Cash Flow
Cash Flowfrom Financing Activities
Cash and cash equivalents(end of year)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2019

FY 2020 YoY (amount)

YoY (ratio)

8,041

8,512

+471

+5.9%

-3,175-4,553-1,378-43.4%

4,866

3,959-907-18.6%-4,194-850+3,344+79.7%

11,67514,804+3,129+26.8%

14

Corporate Vision

Business Vision:
Achieve better safety, security, and comfort, to bring abouta society and sea navigation that considers the needsof people and the environment

Human Resources and Corporate Culture Vision:
VALUE through GLOBALIZATION and SPEED

Growth Targets for FY 2030:
 Consolidated Net Sales of 120 billion Yen
 Operating Margin of 10%
 New Business Composition Ratio of 30%
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

15

Mid-Term Management Plan
We will progressively and promptly work toward realizing the FURUNO GLOBAL VISION“NAVI NEXT 2030” through the following three phases.

FY 2020-2022

FY 2023-2025

FY 2026-2030

Phase 1

Phase 2Phase 3

AdvanceConnect

Transform

Strengthening Capabilities and Improving Structure(1) Dramatic Reduction of Inventory(2) Further Increase in Quality Level(3) Optimization of Product Development Functions(4) Optimization of Comprehensive Manufacturing Functions(5) New Strategic Investment Quota

Targets for Fiscal Year 2022:
ROE (based on operating income): 10% or higher
Payout Ratio: 30% or higher
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16

Strengthening Capabilities and Improving Structure(1) Dramatic Reduction of Inventory(2) Further Increase in Quality Level

Promote the reduction of inventories in all areas of thevalue chain by working together to refine productionplans by improving the demand forecasts accuracy, review
logistics systems by optimizing distribution bases, andshortening procurement and production lead times.

Based on the “Quality Before Everything” mentality,
we aim to further reduce the cost of quality loss byreviewing and steadily implementing back-to-basics
quality processes in each business division, fostering
quality management human resources by upgrading thequality education system, and fostering the corporateculture.

(3) Optimization of ProductDevelopment Functions(4) Optimization of Comprehensive
Manufacturing Functions

Improve development efficiency by optimizing theglobal development system, promoting common design,utilizing simulation, and automating the inspection
process.

Further evolve FPS* activities, which have beencontinuously implemented since 2012, to optimize theglobal production system, automate production processes,
expand configurated production, etc., and thoroughly
eliminate waste and promote 1/2 manufacturing.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

*FPS: Furuno Production System: Building a production system suitable for ourcharacteristic “3 Multiples” (Multiple models, Multiple parts, Multiple factories)

17

Initiatives for Future Growth(5) New Strategic Investment Quota
Investment for future growth in Phase 2 and beyond,including fostering new businesses, R&D including
advanced technology areas, business expansion into
peripheral areas of existing businesses, and infrastructuredevelopment.
New R&D Work Space (completion scheduled September 2021)

Aquaculture Support Business“Profitable aquaculture business” and “visible aquaculturebusiness” together with customers, based on stable fishery
management and succession training.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Building Construction Site using “Waveguide LAN System™”
Provide a robust and comfortable communication environment for
the entire building during construction progress, using
construction unit section pipes as waveguides to build a wireless
LAN environment.
18

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, 2021

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

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.

19

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 Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasoundBone
Densitometer

ClinicalChemistry
Analyzer

ETC20