Consolidated Financial Statements 2024
As of and for the Year Ended February 29, 2024,
and Independent Auditor’s ReportI n d e p e n d e n t A u d i t o r ’s R e p o r t<Audit of Consolidated Financial Statements>
OpinionWe have audited the consolidated financial statements of Furuno Electric Co., Ltd. and its consolidated subsidiaries(the “Group”), which comprise the consolidated balance sheet as of February 29, 2024, and the consolidated
statement of income, consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including a summary of significant accounting policies, all expressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as of February 29, 2024, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in accordance with the basis stated in Note 1 to the consolidated financial
statements. Such U.S. dollar amounts are presented solely for the convenience of readers outside Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the provisions of
the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
A key audit matter is a matter that, in our professional judgment, was of most significance in our audit of theconsolidated financial statements of the current period. The matter was addressed in the context of our audit of theconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on the matter.

1

Recoverability of Furuno Electric Co., Ltd.’s deferred tax assets
Key Audit Matter Description

How the Key Audit Matter Was Addressedin the Audit

The Group recorded deferred tax assets of ¥1,300

In testing the recoverability of deferred tax assets, wemillion in the consolidated balance sheet as of

performed the following audit procedures, among

February 29, 2024.

others:As described in Note 13 “INCOME TAXES,” the amount(1) Internal Control Testingof deferred tax assets before offsetting against• We tested the design and operating effectivenessdeferred tax liabilities was ¥2,791 million, which is theof the controls over the determination of theamount calculated by deducting the valuation

recoverability of deferred tax assets, including

allowance of ¥5,410 million from the deferred tax

estimation of future taxable income.

assets of ¥8,202 million related to deductible(2)	Assessment of the Reasonableness of Estimation

temporary differences and tax loss carryforwards.
Among these amounts, Furuno Electric Co., Ltd., (theof Taxable Income“Company”) recognized the total amount of deferred• With the assistance of our tax specialist, we

tax assets related to deductible temporary differences

examined whether the amounts of deductible

and tax loss carryforwards of ¥3,365 million and thetemporary differences and tax loss carryforwards

valuation allowance of ¥3,365 million, respectively.

were accurately calculated.

The deferred tax assets are recorded to the extent that• We tested the scheduling of the year in which

they have the effect of reducing future tax expenses bydeductible temporary differences are expected tousing deductible temporary differences or offsetting

be used and the operating loss carryforwards aretax loss carryforwards against taxable income.

expected to be deducted for tax purposes by

As described in “Recoverability of deferred tax assets”

reviewing related documents.

under Note 3 “SIGNIFICANT ACCOUNTING• We evaluated the consistency of future business

ESTIMATES,” the recoverability of deferred tax assets
is determined based on estimation of future taxable

plans used in estimating the future taxable income

income and tax planning. Future taxable income iswith the business plans for the following year

estimated based on the Company’s business plans.

approved by the Board of Directors.

Forecasts of sales and cost of sales used in the• We confirmed that the future business plan was

business plans include significant assumptions, suchconsistent with the actual data such as the result

as amounts of orders received, amounts of productionof orders received and production outputs. We

outputs and exchange rates that involve uncertainties,

also made inquiries with management andand management’s judgments have a significant

inspected relevant documentation to examine

impact on the amount of deferred tax assets.

whether these assumptions were reasonably set

Based on the above, we determined that thein light of status of orders received, production

estimation of future taxable income with respect to therecoverability of deferred tax assets is particularlyplans of major factories and external reports

significant for the audit of the consolidated financial

taking into account uncertainty in the significant

statements for the current fiscal year. Therefore, we

assumptions such as future order expectations,

identified it as a key audit matter.

production expectations and exchange rates.

Other Information
Management is responsible for the other information. Audit & Supervisory Board members and the Audit &Supervisory Board are responsible for overseeing the Directors’ execution of duties relating to the design andoperating effectiveness of the controls over the other information. The other information comprises the information
included in the Annual Report, but does not include the consolidated financial statements and our auditor’s report
thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

2

In connection with our audit of the consolidated financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Audit & Supervisory Board Members and the Audit & Supervisory
Board for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern in accordance withaccounting principles generally accepted in Japan and using the going concern basis of accounting unlessmanagement either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Audit & Supervisory Board members and the Audit & Supervisory Board are responsible for overseeing the
Directors’ execution of duties relating to the design and operating effectiveness of the controls over the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with auditing standards generally accepted in Japan will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks. The procedures selected dependon the auditor’s judgment. In addition, we obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.

3• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation, structure
and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with Audit & Supervisory Board members and the Audit & Supervisory Board regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide Audit & Supervisory Board members and the Audit & Supervisory Board with a statement that wehave complied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with Audit & Supervisory Board members and the Audit & Supervisory Board, we
determine those matters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
<Fee-Related Information>
Fees for audit and other services for the year ended February 29, 2024, which were charged by us and our network
firms to Furuno Electric Co., Ltd. and its subsidiaries were ¥113 million and ¥8 million, respectively.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to bedisclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

July 3, 2024

4

Consolidated Balance Sheet
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
February 29, 2024

ASSETS

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
2023

CURRENT ASSETS:
Cash and cash equivalents (Note 16)¥ 11,158 ¥ 14,683 $ 74,055

Short-term investments (Notes 5 and 16)

628

Notes receivable – trade (Notes 6, 16 and 21)

693

4,168

729

942

4,838

Accounts receivable – trade (Notes 6, 16 and 21)

19,576

16,747

129,926
28,632Contract assets (Notes 6 and 21)

4,314

3,847

Electronically recorded receivables – operating (Note 16)

1,054

1,076

6,995

Allowance for doubtful receivables

(369)

(277)

(2,449)Inventories (Note 8)

46,08840,694

305,887

Other current assets

3,104

3,872

20,601

86,28582,280572,675

Total current assets
PROPERTY, PLANT AND EQUIPMENT – NET (Notes 9 and 10):
Land

3,639

3,596

24,152

Buildings and structures

18,533

17,884

123,003

Machinery and equipment

5,714

5,409

37,923

Furniture and fixtures

12,883

12,02685,504Right-of-use assets

2,850

2,305

18,915

263

95

1,745
291,265

Construction in progress
Total
Accumulated depreciation
Property, plant and equipment – net

43,88541,319(29,134)(27,404) (193,362)

14,751

13,914

97,902

3,312

2,349

21,981

789

737

5,236

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 7 and 16)
Investments in unconsolidated subsidiaries andassociated companies
Goodwill

1,047

819

6,948

Asset for retirement benefits (Note 11)

1,685

1,100

11,183

Insurance funds

361

407

2,395
24,683

Software (Note 9)

3,719

3,121

Deferred tax assets (Notes 3 and 13)

1,300

412

8,628

Other assets (Note 9)

1,118

1,252

7,420

13,334

10,202

88,498

Total investments and other assets
TOTAL¥114,370 ¥106,396 $759,076

See notes to consolidated financial statements.

5

LIABILITIES AND EQUITY

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
2023

CURRENT LIABILITIES:
Short-term bank loans (Note 10)¥  6,001 ¥Current portion of long-term debt (Notes 10 and 16)
Notes payable – trade
Accounts payable – trade

3,208

8,009 $ 39,828
202

21,291

28

2

185

5,554

6,433

36,862

Electronically recorded obligations – operating

9,011

9,693

59,806

Income taxes payable

2,610

912

17,322Contract liabilities (Note 21)

2,483

2,756

16,47917,893

Accrued employees' bonuses

2,696

2,193

Accrued product warranty costs

830

872

5,508

Other current liabilities (Note 10)

6,961

6,448

46,20039,38537,525

261,399

Long-term debt (Notes 10 and 16)

8,207

11,10654,470Liability for retirement benefits – employees (Note 11)

3,211

3,154

21,311Long-term accounts payable

154

154

1,022

Deferred tax liabilities (Note 13)

205

363

1,360

1,770

1,589

11,747

13,55016,36889,931

7,534

7,534

50,003

Total current liabilities
LONG-TERM LIABILITIES:Other long-term liabilities (Note 10)
Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES (Note 17)
EQUITY (Note 12):
Common stock – authorized,
120,000 thousand shares; issued,
31,894 thousand shares for both 2024 and 2023
Capital surplus

9,304

9,289

61,750Retained earnings

38,50833,375

255,578

(162)

(175)

(1,075)

Unrealized gain on available-for-sale securities

1,638

975

10,871

Foreign currency translation adjustments

4,546

1,974

30,171

Defined retirement benefit plans

(328)

(860)

(2,176)

61,041

52,113405,130

393

389

2,608

61,43452,503

407,738

Treasury stock – at cost,
305 thousand shares and 330 thousand shares in 2024 and 2023
Accumulated other comprehensive income:

Total
Noncontrolling interests
Total equity
TOTAL¥114,370 ¥106,396 $759,076

6

Consolidated Statement of Income
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Year Ended February 29, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
2023

NET SALES (Note 21)¥114,850¥91,325 $762,261

COST OF SALES

72,25556,947479,557

Gross profit

42,59434,377

282,697

36,07532,853

239,430

6,519

1,523

43,266SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 14 and 15)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income

251

180

1,665

Interest expense

(132)

(104)

(876)

Equity in earnings of an associate accounted for by the equity method

98

86

650

Foreign exchange gain

621

366

4,121

Subsidy income

514

228

3,411

Gain on sales of property, plant and equipment

30

12

199

Loss on sales of shares of subsidiaries(86)

Loss on sales of property, plant and equipment

(7)

(2)

(46)

Loss on disposal of property, plant and equipment

(12)

(18)

(79)

Loss on impairment of long-lived assets (Note 9)

(12)

(24)

(79)

Surrender value of insurance

48

56

318

Loss on revaluation of investment securities

(7)

(43)

Loss on fire(25)

Other – net

282

(46)
(165)

270

1,871

1,650

919

10,951

8,170

2,443

54,224Current

3,469

1,496

23,023

Deferred(1,528)(469)(10,141)

1,940

1,027

12,875

6,229

1,416

41,342

(9)

67

(59)

Other income – net
INCOME BEFORE INCOME TAXESINCOME TAXES (Note 13):

Total income taxes
NET INCOME
NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTSNET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

¥

6,238

PER SHARE OF COMMON STOCK (Note 19):

¥ 1,348 $ 41,401

Yen
2024

Basic net income¥ 197.56

Cash dividends applicable to the year

60.00

See notes to consolidated financial statements.

7

2023

U.S. Dollars
2024¥ 42.72 $   1.31
25.00

0.39

Consolidated Statement of Comprehensive Income
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Year Ended February 29, 2024

Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
2023

NET INCOME¥ 6,229¥1,416$41,342

OTHER COMPREHENSIVE INCOME (Note 18):
Unrealized gain on available-for-sale securities

662

321

4,393

2,562

3,064

17,004

Defined retirement benefit plans

532

(460)

3,530

Share of other comprehensive income of an associateaccounted for by the equity method

23

45

152

3,780

2,970

25,087¥10,009¥4,386$66,429¥10,005¥4,282$66,403

4

104

26

Foreign currency translation adjustments

Total other comprehensive income
COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent
Noncontrolling interests
See notes to consolidated financial statements.

8

Consolidated Statement of Changes in Equity
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Year Ended February 29, 2024

Thousands

Millions of Yen

Number of
Shares ofCommonStockCommonOutstanding Stock

BALANCE, FEBRUARY 28, 2022
Cumulative effects of changes inaccounting policies
RESTATED BALANCE
Net income attributable to owners of the parent
Cash dividends, ¥30.0 per share
Change in scope of consolidation
Purchase of treasury stock
Restricted-share-based compensation
Net change in the year
BALANCE, FEBRUARY 28, 2023
Net income attributable to owners of the parent
Cash dividends, ¥35.0 per share
Purchase of treasury stock
Restricted-share-based compensation
Net change in the year

31,541BALANCE, FEBRUARY 29, 2024

31,589

Accumulated Other Comprehensive
IncomeUnrealized
Foreign
Gain onAvailable-for- Currency
DefinedTreasury
Translation Retirement
Sale
Securities Adjustments Benefit Plans
Stock

CapitalSurplusRetained
Earnings¥9,295¥32,152¥7,534¥(187)¥ 654¥(1,169)

9,295

(15)
(0)
22
31,56332,753
1,348
(946)
220

9,289

(0)
25

33,375
6,238(1,105)600

600

48,481
1,348
(946)
204
(0)
21
3,003
52,113
6,238(1,105)
(0)
27
3,766

3

48,481
1,348
(946)
204
(0)
21
3,393
52,503
6,238(1,105)
(0)
27
3,770

¥9,304¥393¥61,434

Noncontrolling
Interests

Total
Equity654(1,169)

(399)

321
975

3,143
1,974

(460)
(860)

662

2,571

532

¥1,638¥ 4,546¥(328) ¥61,041

(0)
13

14

¥7,534(175)¥38,508¥(162)

Total
Equity¥47,880

(0)
11

9
7,534

(187)

Noncontrolling
Interests¥(399) ¥47,880

600
7,534

Total

¥389
389

Thousands of U.S. Dollars (Note 1)

CommonStockCapitalSurplusRetained
Earnings

BALANCE, FEBRUARY 28, 2023
Net income attributable to owners of the parent
Cash dividends, $0.23 per share
Purchase of treasury stock
Restricted-share-based compensation
Net change in the year

$50,003$61,651 $221,510
41,401(7,333)BALANCE, FEBRUARY 29, 2024

$50,00392$61,750 $255,578

See notes to consolidated financial statements.

9

Accumulated Other Comprehensive
IncomeUnrealized
Foreign
Gain onCurrency
DefinedTreasury Available-for-Sale Translation Retirement
Securities
Adjustments
Benefit
Plans
Stock

$(1,161) $ 6,471$13,101

Total

4,393

17,063$(5,707) $345,875
41,401(7,333)(0)
179
3,530 24,995$(1,075) $10,871$30,171$(2,176) $405,130(0)86$2,581 $348,463
41,401(7,333)(0)179
1925,021$2,608 $407,738

Consolidated Statement of Cash Flows
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Year Ended February 29, 2024

Millions of Yen
2024
2023

OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes – paid
Depreciation and amortization
Loss on impairment of long-lived assets
Changes in assets and liabilities:
Increase in trade receivables and contract assets
Increase in inventories
Decrease (increase) in asset for retirement benefits(Decrease) increase in trade payables
Decrease in accounts payable – other
Increase in accrued expenses
Decrease in accrued product warranty costs
Increase in liability for retirement benefits
Decrease (increase) in consumption taxes receivable(Decrease) increase in contract liabilities(Decrease) increase in liabilities on chargeable supply
Other – net
Total adjustments
Net cash provided by (used in) operating activities

Thousands of
U.S. Dollars(Note 1)2024

¥ 8,170¥ 2,443$ 54,224(1,889)
3,413
12

(765)
3,061
24

(12,537)
22,65279(1,616)(3,678)44(2,510)
(595)
566
(60)
144
154
(393)
(407)
1,358
(5,456)2,713(1,769)(13,155)
(61)
2,507
(43)
53
(238)
1
(109)
464
712
383
(8,935)(6,492)(10,725)(24,410)292(16,658)(3,949)
3,756
(398)
955
1,022
(2,608)(2,701)
9,013(36,211)18,00635(1,678)(1,672)

232(11,136)(11,097)(273)(3,589)23(1,616)
(963)
(191)
(278)
(3,027)(2,008)300(210)(1,105)(527)(5)(3,557)

8,007
3,000
(1,308)
(946)
(420)
(68)
8,263

(13,327)
1,991(1,393)(7,333)(3,497)(33)(23,607)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS
909
1,397
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS—(Forward)(3,524)141
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
14,683
13,864
INCREASE IN CASH AND CASH EQUIVALENTS RESULTING FROM NEW CONSOLIDATION (Note 23)
575
INCREASE IN CASH AND CASH EQUIVALENTS RESULTING FROM102
MERGER OF NONCONSOLIDATED SUBSIDIARIESCASH AND CASH EQUIVALENTS, END OF YEAR
¥11,158 ¥14,683

6,033(23,388)
97,451INVESTING ACTIVITIES:
Proceeds from sales of property, plant and equipment
Purchases of property, plant and equipment
Purchases of intangible assets
Payments for sale of shares of a subsidiary resulting in a change in scope of consolidation (Note 23)
Increase in other assets (Note 23)
Net cash used in investing activities
FINANCING ACTIVITIES:(Decrease) increase in short-term bank loans – net
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
Repayments of finance lease obligations
Other
Net cash (used in) provided by financing activities

See notes to consolidated financial statements.

10(1,811)(23,820)$ 74,055

Notes to Consolidated Financial Statements
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Year Ended February 29, 2024

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations and in accordance with accounting principles generally accepted in Japan(“Japanese GAAP”), which are different in certain respects as to the application and disclosure
requirements of IFRS Accounting Standards.
In preparing these consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domestically inorder to present them in a form which is more familiar to readers outside Japan. In addition,certain reclassifications have been made in the 2023 consolidated financial statements toconform to the classifications used in 2024.
The consolidated financial statements are stated in Japanese yen, the currency of the country
in which Furuno Electric Co., Ltd. (the “Company”) is incorporated and operates. The translationsof Japanese yen amounts into U.S. dollar amounts are included solely for the convenience ofreaders outside Japan and have been made at the rate of ¥150.67 to $1, the approximate rate ofexchange at February 29, 2024. Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
As permitted under the Financial Instruments and Exchange Act of Japan, figures less than
one million yen have been omitted. As a result, the totals shown in the accompanying
consolidated financial statements do not necessarily agree with the sum of the individual
amounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation – The consolidated financial statements as of February 29, 2024, include theaccounts of the Company and its 35 significant (36 in 2023) subsidiaries (together, the“Group”).
In the fiscal year ended February 29, 2024, FURUNO KANSAI HANBAI CO., LTD. and
FURUNO KYUSHU HANBAI CO., LTD. were dissolved through an absorption-type merger,
with the Company as the surviving entity on March 1, 2023, and accordingly, excluded fromthe scope of consolidation.
Furthermore, FURUNO FRANCE S.A.S., which is a consolidated subsidiary of the Company,
acquired all the shares of SARL ROBIN MARINE and accordingly, it is included in the scope of
consolidation from the fiscal year ended February 29, 2024.
Under the control and influence concepts, those companies in which the Company, directly
or indirectly, is able to exercise control over operations are fully consolidated, and thosecompanies over which the Group has the ability to exercise significant influence are accounted
for by the equity method.
Investments in an associated company are accounted for by the equity method.
Investments in 1 (1 in 2023) unconsolidated subsidiary and 1 (1 in 2023) associatedcompany are stated at cost. If the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial
statements would not be material.
Goodwill represents the excess of the cost of an acquisition over the fair value of the net
assets of the acquired subsidiary company at the date of acquisition. Goodwill is reported in
the balance sheet and is amortized using the straight-line method over reasonably estimatedperiods (5 to 18 years) in which economic benefits are expected to be realized.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profit included in assets resulting from transactions within
the Group is also eliminated.
Of consolidated subsidiaries, 3 other subsidiaries’ fiscal year-end dates are November 30, a
subsidiary’s fiscal year-end date is September 30, and 27 other subsidiaries’ fiscal year-end
dates are December 31.
In preparing the consolidated financial statements, proforma financial statements as ofDecember 31 are used for an overseas consolidated subsidiary whose fiscal closing date is
September 30, and for other 30 overseas consolidated subsidiaries, financial statements as of
their fiscal closing dates are used. However, adjustments necessary for consolidation are
made for significant transactions that occurred during the consolidation period.

11

b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements – Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues
Task Force (“PITF”) No. 18, “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements,” the accounting policies andprocedures applied to a parent company and its subsidiaries for similar transactions and events
under similar circumstances should in principle be unified for the preparation of the consolidated
financial statements. However, financial statements prepared by foreign subsidiaries inaccordance with either IFRS Accounting Standards or generally accepted accounting principles
in the United States of America (Financial Accounting Standards Board Accounting Standards
Codification) (“U.S. GAAP”) tentatively may be used for the consolidation process, except for thefollowing items that should be adjusted in the consolidation process so that net income isaccounted for in accordance with Japanese GAAP, unless they are not material; (a) amortizationof goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has beenrecorded in equity through other comprehensive income; (c) expensing capitalized development
costs of R&D; (d) cancellation of the fair value model of accounting for property, plant andequipment and investment properties and incorporation of the cost model of accounting; and (e)recording a gain or loss through profit or loss on the sale of an investment in an equity
instrument for the difference between the acquisition cost and selling price, and recording
impairment loss through profit or loss for other-than-temporary declines in the fair value of aninvestment in an equity instrument, where a foreign subsidiary elects to present in othercomprehensive income subsequent changes in the fair value of an investment in an equity
instrument.
c. Unification of Accounting Policies Applied to Foreign Associated Companies for the
Equity Method – ASBJ Statement No. 16, “Accounting Standard for Equity Method of
Accounting for Investments,” requires adjustments to be made to conform the associate’s
accounting policies for similar transactions and events under similar circumstances to those of
the parent company when the associate’s financial statements are used in applying the equity
method, unless it is impracticable to determine such adjustments. In addition, financial
statements prepared by foreign associated companies in accordance with either IFRS
Accounting Standards or U.S. GAAP tentatively may be used in applying the equity method if
the following items are adjusted so that net income is accounted for in accordance withJapanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled
amortization of actuarial gain or loss of pensions that has been recorded in equity through othercomprehensive income; (c) expensing capitalized development costs of R&D; (d) cancellation of
the fair value model of accounting for property, plant and equipment and investment properties
and incorporation of the cost model of accounting; and (e) recording a gain or loss through profit
or loss on the sale of an investment in an equity instrument for the difference between theacquisition cost and selling price, and recording impairment loss through profit or loss for otherthan-temporary declines in the fair value of an investment in an equity instrument, where aforeign associate elects to present in other comprehensive income subsequent changes in thefair value of an investment in an equity instrument.
d. Business Combinations – Business combinations are accounted for using the purchasemethod. Acquisition-related costs, such as advisory fees or professional fees, are accounted foras expenses in the periods in which the costs are incurred. If the initial accounting for a businesscombination is incomplete by the end of the reporting period in which the business combination
occurs, an acquirer shall report in its financial statements provisional amounts for the items forwhich the accounting is incomplete. During the measurement period, which shall not exceed
one year from the acquisition, the acquirer shall retrospectively adjust the provisional amounts
recognized at the acquisition date to reflect new information obtained about facts andcircumstances that existed as of the acquisition date and that would have affected themeasurement of the amounts recognized as of that date. Such adjustments shall be recognized
as if the accounting for the business combination had been completed at the acquisition date.
The acquirer recognizes any bargain purchase gain in profit or loss immediately on theacquisition date after reassessing and confirming that all of the assets acquired and all of theliabilities assumed have been identified after a review of the procedures used in the purchaseprice allocation. A parent’s ownership interest in a subsidiary might change if the parent
purchases or sells ownership interests in its subsidiary. The carrying amount of noncontrolling12

interest is adjusted to reflect the change in the parent’s ownership interest in its subsidiary while
the parent retains its controlling interest in its subsidiary. Any difference between the fair value ofthe consideration received or paid and the amount by which the noncontrolling interest is
adjusted is accounted for as capital surplus as long as the parent retains control over its
subsidiary.
e. Cash Equivalents – Cash equivalents are short-term investments that are readily convertible
into cash and exposed to insignificant risk of changes in value. Cash equivalents include time
deposits, certificates of deposit, commercial paper and bond funds, all of which mature or
become due within three months of the date of acquisition.
f. Allowance for Doubtful Accounts – The allowance for doubtful accounts is stated inamounts considered to be appropriate based on the Group’s past credit loss experience andan evaluation of potential losses in the receivables outstanding.
g. Inventories – Inventories are stated at the lower of cost, principally determined by the averagemethod, or net selling value.
h. Investment Securities – The Company and its domestic consolidated subsidiaries categorize
their existing securities as available-for-sale securities.
Securities other than shares, etc. that do not have a market price, are reported at fair value,with unrealized gains and losses, net of applicable taxes, reported in a separate component ofequity. The cost of securities sold is mainly calculated using the moving-average method.
Shares, etc. that do not have a market price are stated at cost, determined by the movingaverage method.
i. Property, Plant and Equipment – Property, plant and equipment are carried at cost.
Depreciation of property, plant and equipment is computed principally by the declining-balancemethod.
j. Long-Lived Assets – The Group reviews its long-lived assets for impairment whenever eventsor changes in circumstance indicate the carrying amount of an asset or asset group may not
be recoverable. An impairment loss is recognized if the carrying amount of an asset or asset
group exceeds the sum of the undiscounted future cash flows expected to result from thecontinued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at disposition.
k. Product Warranty Costs – The Group establishes a liability for estimated product warranty
costs at the time of sale. Estimates for accrued product warranty costs are primarily based on
historical experience.
l. Significant Revenue and Expenses – The details of the main performance obligations in the
major businesses related to revenue from contracts with the Company’s customers and thetiming at which the Company typically satisfied these performance obligations (when it typicallyrecognizes revenue) are as follows:(1) “Marine” businessIn the “Marine” business, the Group mainly manufactures and sells navigation equipment,
fishing equipment and radio communication equipment, etc.
(2) “Industrial” businessIn the “Industrial” business, the Group mainly manufactures and sells medical equipment, ITS
equipment, GPS equipment, and avionics electronic equipment, etc.
(3) “Wireless LAN/Handy Terminal” businessIn the “Wireless LAN/Handy Terminal” business, the Group mainly manufactures and sells
handy terminals.

13(4) “Other” businessIn the “Other” business, the Group is mainly engaged in the electromagnetic environmental
testing business.
In each business, revenue is generally recognized when these products are delivered to thecustomers or accepted by the customers, with the exception of domestic sales where revenue
is recognized upon shipment since the time period from shipment until the transfer of control
over the products to the customers is typically a short period.
For repairing services in the marine business and jobbing production transactions in theindustrial business, performance obligations are deemed to be satisfied over time and revenue
is recognized based on the percentage of completion method. The outcome of construction
contracts is measured based on the proportion of construction costs incurred by the end of
the reporting period to the total expected construction costs. In some cases, the Group may
not be able to reasonably measure the outcome of the performance obligation, but expects torecover the costs incurred to satisfy the performance obligations. In those circumstances, theCompany recognizes revenue only to the extent of the costs incurred. For a construction
contract whose performance obligations are expected to be satisfied within a short period, theCompany applies an alternative method and recognizes revenue when the performanceobligations are completely satisfied instead of recognizing revenue over time.
For any of the above businesses, if the delivery of products involves installation,
performance obligations are identified for the installation and delivery of products separately
and revenue is recognized as mentioned above.
m. Retirement and Pension Plans – The Company and certain consolidated subsidiaries havelump-sum severance indemnity plans, defined contribution pension plans and contributory
funded defined benefit pension plans, which are pursuant to the Japanese Welfare Pension
Insurance Law.
The Company accounts for liabilities for retirement benefits based on the projected benefit
obligations and plan assets at the balance sheet date. The projected benefit obligations are
attributed to periods on a benefit formula basis. Actuarial gains and losses are amortized on astraight-line basis over 10 years within the average remaining service period of employees
commencing from the following year after incurrence.
Certain consolidated subsidiaries adopt a simplified method under which the retirement
benefit amount required to be paid if all the employees retired on the balance sheet date isconsidered as the projected benefit obligations in computing liabilities for retirement benefits
and net periodic benefit costs.
n. Asset Retirement Obligations – An asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition, construction, development,
and normal operation of a tangible fixed asset and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted
cash flows required for the future asset retirement and is recorded in the period in which the
obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of the asset
retirement obligation cannot be made in the period the asset retirement obligation is incurred,
the liability should be recognized when a reasonable estimate of the asset retirement obligation
can be made. Upon initial recognition of a liability for an asset retirement obligation, an asset
retirement cost is capitalized by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently allocated to expense throughdepreciation over the remaining useful life of the asset. Over time, the liability is accreted to its
present value each period. Any subsequent revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as an adjustment to the carrying amount of
the liability and the capitalized amount of the related asset retirement cost.
o. Research and Development Costs – Research and development costs are charged to income
as incurred.
p. Income Taxes – The provision for income taxes is computed based on the pretax income
included in the consolidated statement of income. The asset and liability approach is used torecognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases of assets and liabilities.

14

Deferred taxes are measured by applying currently enacted income tax rates to the temporary
differences.
q. Adoption of the Group Tax Sharing System – The Company and its domestic consolidated
subsidiaries have adopted the Group Tax Sharing System from the fiscal year ended February
29, 2024, and are accounting for national and local income taxes and the related tax effect inaccordance with the “Practical Solution on the Accounting and Disclosure under the Group Tax
Sharing System” (PITF No. 42, August 12, 2021).
r. Foreign Currency Transactions – All short-term and long-term monetary receivables andpayables denominated in foreign currencies are translated into Japanese yen at the exchange
rates at the balance sheet date. The foreign exchange gains and losses from translation arerecognized in the consolidated statement of income to the extent that they are not hedged byforward exchange contracts.
s. Foreign Currency Financial Statements – The balance sheet accounts of the consolidated
foreign subsidiaries are translated into Japanese yen at the current exchange rate as of thebalance sheet date except for equity, which is translated at the historical rate. Differences arisingfrom such translation were shown as “Foreign currency translation adjustments” and also
allocated to “Noncontrolling interests” in a separate component of equity. Revenue and expense
accounts of consolidated foreign subsidiaries are translated into yen at the average exchange
rate.
t. Derivatives and Hedging Activities – The Group uses derivative financial instruments tomanage exposures to fluctuations in interest rates. Interest rate swaps are utilized to reduce theinterest rate risks of long-term debt. The Group does not enter into derivatives for trading or
speculative purposes.
Derivative financial instruments are classified and accounted for as follows: (a) all derivatives
are recognized as either assets or liabilities and measured at fair value, and gains or losses onderivative transactions are recognized in the consolidated statement of income; and (b) for
derivatives used for hedging purposes, if such derivatives qualify for hedge accounting becauseof high correlation and effectiveness between the hedging instruments and the hedged items,
gains or losses on derivatives are deferred until maturity of the hedged transactions in principle.
The interest rate swaps which qualify for hedge accounting and meet specific matching
criteria are not remeasured at market value but the differential paid or received under the swap
agreements is recognized and included in interest expense or income.
u. Per Share Information – Basic net income per share is computed by dividing net income
attributable to common shareholders by the weighted-average number of common shares
outstanding for the period.
Cash dividends per share presented in the accompanying consolidated statement of income
are dividends applicable to the respective fiscal years, including dividends to be paid after theend of the year.
v. Changes in Accounting Policies
Implementation Guidance on Accounting Standard for Fair Value Measurement
The Group has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021; hereinafter “Implementation Guidanceon Fair Value Measurement Standard”) from the beginning of the reporting period, and willprospectively apply the new accounting policies stipulated by the Implementation Guidance on
Fair Value Measurement Standard in accordance with the transitional treatment provided in
Paragraph 27-2 of the Implementation Guidance on Fair Value Measurement Standard. The
impact of these changes on the consolidated financial statements for the fiscal year ended
February 29, 2024, is immaterial.
The Group does not present notes pertaining to the previous period on investment trust in fairvalue information by level within the fair value hierarchy in the notes on financial instruments inaccordance with Paragraph 27-3 of the Implementation Guidance on Fair Value Measurement
Standard.
15

Financial Accounting Standards Board (“FASB”) ASU 2016-02 “Leases”
North American subsidiary has applied ASU 2016-02 “Leases” (February 25, 2016; hereinafter“ASU 2016-02”) from the fiscal year ended February 29, 2024.
Due to the adoption of ASU 2016-02, the lessee recognizes lease assets and liabilities on all
the lease contracts in principle. In adopting this accounting standard, these subsidiaries
recognize the cumulative effects from adopting this accounting standard at the beginning of the
adoption as permitted as a transitional treatment.
The impact of these changes on the consolidated financial statements for the fiscal year
ended February 29, 2024, is immaterial.
w. New Accounting Pronouncements
Accounting Standard for Current Income Taxes, etc., Accounting Standard for
Presentation of Comprehensive Income and Implementation Guidance on AccountingStandard for Tax Effect Accounting
On October 28, 2022, the ASBJ issued the following statements and guidance:
Accounting Standard for Current Income Taxes, etc. (ASBJ Statement No. 27, October 28,
2022)
Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25,
October 28, 2022)
Implementation Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance
No. 28, October 28, 2022)(1) Overview
These standards and guidance define the accounting classifications for current income
taxes, etc. when other comprehensive income is subject to income taxes and tax effectaccounting for sales of shares of subsidiaries when the group taxation system is applied.
(2) Date of adoption
The Group expects to adopt these accounting standards, etc. from the beginning of the year
ending February 28, 2026.
(3) Impact of the adoption of the accounting standards, etc.
The impact of the adoption of these accounting standards, etc. is under evaluation at thetime of preparation of the accompanying consolidated financial statements.
x. Changes in Presentation
Consolidated Statement of Cash Flows“Decrease in accounts payable – other” and “Increase in accrued expenses” under “Changes in
assets and liabilities” of “OPERATING ACTIVITIES,” which had been included in “Other – net” inthe previous fiscal year, are separately presented from the year ended February 29, 2024, due tothe increased materiality. To reflect this change in presentation, the consolidated financial
statements for the previous fiscal year have been reclassified.
As a result, ¥392 million included in “Other – net” under “OPERATING ACTIVITIES” in the
consolidated statement of cash flows for the previous fiscal year, has been reclassified to ¥(43)
million of “Decrease in accounts payable – other,” ¥53 million of “Increase in accrued expenses”
and ¥383 million of “Other – net.”

16

3. SIGNIFICANT ACCOUNTING ESTIMATES
Accounting estimates are recorded at the reasonable amounts computed based on information
available at the time of preparation of the consolidated financial statements.
The item whose amounts were recorded based on accounting estimates in the consolidated
financial statements for the year ended February 29, 2024, that may have a significant impact on
the consolidated financial statements for the following fiscal year is as follows:
Recoverability of Deferred Tax Assets(1)	Amounts recorded in the consolidated financial statements for the years ended February 29,
2024 and February 28, 2023
Millions of Yen
2024
2023

Deferred tax assets¥1,300¥412

Thousands of
U.S. Dollars
2024$8,628The amount recorded as deferred tax assets refers to the amount after offsetting against deferred
tax liabilities and deducting valuation allowance.
(2)	Information about the details of significant accounting estimates on the identified item
Deferred tax assets are recognized to the extent that it is considered to have effects to reduce
future tax burdens through the reversal of deductible temporary differences or the offsetting oftax loss carryforwards against taxable income.
	 Recoverability of deferred tax assets is determined based on estimation of future taxable
income and tax planning. Future taxable income is estimated based on the Group’s businessplans. Forecasts of sales and cost of sales used in the business plans include significant
assumptions, such as amounts of orders received and production outputs and foreignexchange rates. Therefore, when the assessment of recoverability of deferred tax assetschanges due to any variations in these significant assumptions, it might have an impact on
the consolidated financial statements for the following fiscal year.

4. BUSINESS COMBINATION
Year Ended February 29, 2024
(Business Combination by Acquisition)
The Company decided at a meeting of its Board of Directors held on June 21, 2023, to have
FURUNO FRANCE S.A.S., a consolidated subsidiary, acquire all shares of SARL ROBIN MARINE
to make it a subsidiary. FURUNO FRANCE S.A.S. concluded a share transfer agreement on July4, 2023, and acquired all shares of SARL ROBIN MARINE on the same date.
a. Outline of the business combination(1) Name of the acquired company and its business
Name of the acquired company:

SARL ROBIN MARINE

Business of the acquired company:

Sales and services of marine electronic equipment(2) Main reasons for the business combination
SARL ROBIN MARINE has sales and technological capacity to design systems and installand perform maintenance of equipment with high level of expertise. The Company decided
to acquire SARL ROBIN MARINE, which had many contracts directly with shipbuilders, withexpectations that the acquisition would produce complementary and synergetic effects withFURUNO FRANCE S.A.S.
(3) Date of the business combination
July 1, 2023 (deemed acquisition date)July 4, 2023 (share acquisition date)17

(4) Legal form of the business combination
Share acquisition by cash(5) Name of the company after the combination
No change(6) Ratio of voting rights after the acquisition
100.00%(7) Basis for determining the acquirer
It is based on the fact that FURUNO FRANCE S.A.S. acquired shares of the acquiredcompany by cash.
b. The period for which the operations of the acquired company are included in the
consolidated financial statements
From July 1, 2023 through December 31, 2023
c. Acquisition cost and its details
Consideration for acquisition – Cash
Acquisition cost

Millions ofYen

Thousands of
U.S. Dollars

¥593
¥593

$3,935$3,935

Note: Consideration for acquisition has not been fixed as of February 29, 2024, since price adjustment after the acquisitionof shares has not been completed.

d. Major acquisition-related costs
Advisory fees, etc.: ¥9 million ($59 thousand)e.	Amount of goodwill incurred, reason for the goodwill incurred, and the method andperiod of amortization(1) Amount of goodwill incurred¥314 million ($2,084 thousand)
The acquisition cost allocation has not yet been completed as of February 29, 2024.
Therefore, the amount of goodwill is accounted for on a provisional basis.
(2) Reasons for the goodwill incurred
Goodwill is incurred from expected excess earnings power in the future arising from further
business development.
(3) Method and period of amortization
The goodwill is amortized on a straight-line basis over nine years.
f. The assets acquired and the liabilities assumed at the business combination date areas follows:
Millions ofYen

Thousands of
U.S. Dollars

Current assets
Long-lived assets
Total assets acquired¥1,27267¥1,340$8,442444$8,893Current liabilities
Long-term liabilities
Total liabilities assumed¥1,04119¥1,061$6,909126$7,04118

5. SHORT-TERM INVESTMENTS
Short-term investments as of February 29, 2024 and February 28, 2023, consisted of thefollowing:
Millions of Yen
2024
2023

Time deposits other than cash equivalents

Thousands of
U.S. Dollars
2024

¥693

¥628

$4,168

6. RECEIVABLES FROM CONTRACTS WITH CUSTOMERS
Receivables from contracts with customers included in “Notes receivable – trade” and “Accounts
receivable – trade” as of February 29, 2024 and February 28, 2023, are as follows:
Millions of Yen
2024
2023

Notes receivable – trade¥

Accounts receivable – trade
Contracts assets

729
19,576
4,314

19

¥

Thousands of
U.S. Dollars
2024

942 $
16,747
3,847

4,838
129,926
28,632

7. INVESTMENT SECURITIESInvestment securities as of February 29, 2024 and February 28, 2023, consisted of the following:
Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Non-current:
Marketable equity securities
Other
Total

¥3,103209¥3,312¥2,162187¥2,349$20,594
1,387$21,981

The costs and aggregate fair values of investment securities at February 29, 2024 and February
28, 2023, were as follows:
February 29, 2024
Securities classified as:

Cost

Millions of Yen
Unrealized
Unrealized
Gains
LossesFair
Value

Available-for-sale:
Equity securities
Others¥916
43¥2,18654¥916
43¥1,24934¥3,10397

February 28, 2023

Securities classified as:
Available-for-sale:
Equity securities
OthersFebruary 29, 2024
Securities classified as:

Cost

¥(4)
(0)

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses¥2,162
78

Fair
Value

Available-for-sale:
Equity securities
Others$6,079285$14,508358$20,594
643

Available-for-sale securities whose fair value is not readily determinable as of February 29, 2024
and February 28, 2023, were as follows:
Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2024
2023
2024

Available-for-sale:
Equity securities

¥111

¥109

$736

For the years ended February 29, 2024 and February 28, 2023, the Company recognized loss onrevaluation of investment securities (equity securities classified as available-for-sale) in an amountof ¥7 million ($46 thousand) and ¥43 million, respectively.

20

8. INVENTORIESInventories at February 29, 2024 and February 28, 2023, consisted of the following:
Millions of Yen
2024
2023

Merchandise and finished products¥26,979

Thousands of
U.S. Dollars
2024¥19,705 $179,060

Work in process

3,624

4,229

24,052

Raw materials and supplies

15,483

16,759102,761¥46,088¥40,694 $305,887

Total

9. LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of February 29, 2024 and February
28, 2023. As a result, the Group recognized impairment losses of ¥12 million ($79 thousand) and¥24 million, respectively, as other expenses. These impairment losses primarily related to longlived assets of the Marine Business and the Industrial Business for the years ended February 29,
2024 and February 28, 2023, due to continuing operating losses in the divisions. Recoverable
amounts of these assets were measured in terms of the value in use. However, since future cash
flows are not expected, the value in use is calculated as zero.

10. SHORT-TERM BANK LOANS, LONG-TERM DEBT AND LEASE OBLIGATIONS
Short-term bank loans at February 29, 2024 and February 28, 2023, consisted of notes to banks
and bank overdrafts. The weighted-average interest rates applicable to the short-term bank loans
were 0.24% and 0.34% at February 29, 2024 and February 28, 2023, respectively.
Long-term debt at February 29, 2024 and February 28, 2023, consisted of the following:
Millions of Yen
2024
2023

Loans from banks and insurance companies, due serially to 2028 with weighted¥11,416
average interest rates from 0.43% to 0.56% (2024) and from 0.45% to 0.52% (2023)
Less current portionLong-term debt, less current portion¥11,308

Thousands of
U.S. Dollars
2024$ 75,768(3,208)(202)(21,291)¥ 8,207¥11,106$ 54,470

Lease obligations with due dates leading up to March 2067 with an average interest rate of
3.00% are included in “Other long-term liabilities,” excluding current portion which is included in“Other current liabilities.”
Annual maturities of long-term debt and lease obligations at February 29, 2024, were as
follows:
Millions of Yen
Long-term
Lease
Debt
Obligations

Thousands of
U.S. Dollars
Long-term
Lease
Debt
Obligations¥ 3,208¥ 527$21,291$ 3,497

2026

3,005

315

19,944

2,090

2027

1,402

304

9,305

2,017

2028

3,500

68

23,229

451

2029

300

30

1,991

Year Ending February 28 or 29
2025

2030 and thereafter

319

Total

¥11,416

21¥1,566

199
2,117$75,768$10,393

The carrying amounts of assets pledged as collateral for bank loans at February 29, 2024 andFebruary 28, 2023, were as follows, although there were no corresponding obligations:Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Land and buildings, net of accumulated depreciation

¥113

¥103

$749

As is customary in Japan, the Company maintains substantial deposit balances with bankswith which it has borrowings. Such deposit balances are not legally or contractually restricted as
to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional
collateral must be provided under certain circumstances if requested by such banks and thatcertain banks have the right to offset cash deposited with them against any long-term or shortterm debt or obligation that becomes due and, in case of default and certain other specified
events, against all other debt payable to the banks. The Company has never been requested toprovide any additional collateral.

11. RETIREMENT AND PENSION PLANS
The Company and certain consolidated subsidiaries have severance payment plans for
employees. Under most circumstances, employees terminating their employment are entitled toretirement benefits determined based on the rate of pay at the time of termination, years ofservice and certain other factors. Such retirement benefits are made in the form of a lump-sum
severance payment from the Company or from certain consolidated subsidiaries and annuity
payments from a trustee. Under certain situation, employees are entitled to receive additional
payments if the termination is by voluntary retirement at earlier ages prior to the mandatory
retirement age.
The Company and certain consolidated subsidiaries have contributory funded defined benefit
pension plans and unfunded retirement benefit plans for employees. Certain overseas
consolidated subsidiaries have defined retirement benefit plans or defined retirement contributionplans.
Certain consolidated subsidiaries adopt the simplified method in determining retirement benefit
obligations.
a. Defined Benefit Plans (Including Plans to Which the Simplified Method Is Applied)(1) The changes in defined benefit obligations for the years ended February 29, 2024 andFebruary 28, 2023, were as follows:
Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Balance at beginning of year

¥14,134¥14,526$93,807

Current service cost

546

530

3,623

Interest cost

139

143

922

Actuarial (gains) losses
Benefits paid
OthersBalance at end of year

22

(3)

192

(19)

(1,304)(1,319)(8,654)

141

60

935

¥13,653¥14,134$90,615

(2)	The changes in plan assets for the years ended February 29, 2024 and February 28, 2023,
were as follows:
Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Balance at beginning of year

¥12,081¥13,030$80,181

Expected return on plan assets

251

271

1,665

Actuarial gains (losses)

472

(529)

3,132

Contributions from the employer

305

310

2,024

Benefits paid
Balance at end of year(983)

(1,002)(6,524)¥12,126¥12,081$80,480(3)	Reconciliations between the liability recorded in the consolidated balance sheet and thebalances of defined benefit obligations and plan assets were as follows:
Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Funded defined benefit obligation¥ 10,441 ¥ 10,980$ 69,297

Plan assets(12,126)(12,081)(80,480)

Total(1,685)(1,100)(11,183)

3,211

3,154

21,311¥ 1,526 ¥ 2,053$ 10,128

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Unfunded defined benefit obligation
Net liability arising from defined benefit obligation

Liability for retirement benefits¥ 3,211¥ 3,154$ 21,311

Asset for retirement benefits(1,685)(1,100)(11,183)

Net liability arising from defined benefit obligation¥ 1,526¥ 2,053$ 10,128(4)	The components of net periodic benefit costs for the years ended February 29, 2024 andFebruary 28, 2023, were as follows:
Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Service cost

¥ 546

¥ 530

$ 3,623

Interest cost

139

143

922

Expected return on plan assets

(251)

(271)

(1,665)

Amortization of actuarial differences

248

135

1,645

Periodic benefit cost calculated by the simplified method

89

60

590

Others

35

46

232

¥ 807

¥ 646

$ 5,356

Net periodic benefit costs(5)	Amounts recognized in other comprehensive income (before income tax effect) in respect ofdefined retirement benefit plans for the years ended February 29, 2024 and February 28,
2023, were as follows:
Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Actuarial differences¥724¥(585)$4,805

Total

¥724

¥(585)$4,80523

(6)	Amounts recognized in accumulated other comprehensive income (before income tax
effect) in respect of defined retirement benefit plans as of February 29, 2024 and February
28, 2023, were as follows:
Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Unrecognized actuarial differences¥299¥1,023$1,984

Total

¥299

¥1,023$1,984(7) Plan assets(a) Components of plan assets
Plan assets as of February 29, 2024 and February 28, 2023, consisted of the following:
2024

2023

Debt investments

41%

43%

Equity investments

26

24

Cash and cash equivalents

01

General account assets of life insurance

25

27

Others

8

5

Total

100%

100%

(b) Method of determining the expected rate of return on plan assets
	The expected rate of return on plan assets is determined by considering the long-term
rates of return which are expected currently and in the future from the various
components of the plan assets.
(8)	Assumptions used for the years ended February 29, 2024 and February 28, 2023, were set
forth as follows:
2024

2023

Discount rate

1.0%

1.0%

Expected rate of return on plan assets

2.1

2.1

Expected rate of salary increase

2.3

2.8

b. Defined Contribution Plans
The amount of required contribution to the defined contribution plans of the Company andcertain consolidated subsidiaries for the years ended February 29, 2024 and February 28,
2023, was ¥458 million ($3,039 thousand) and ¥425 million, respectively.

2412. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The
significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders’ meeting. Additionally, forcompanies that meet certain criteria including (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service ofthe directors being prescribed as one year rather than the normal two-year term by its articles
of incorporation, the Board of Directors may declare dividends (except for dividends-in-kind) at
any time during the fiscal year if the company has prescribed so in its articles of incorporation.
However, the Company does not meet all the above criteria.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of
Directors if the articles of incorporation of the company so stipulate. The Companies Act
provides certain limitations on the amounts available for dividends or the purchase of treasury
stock. The limitation is defined as the amount available for distribution to the shareholders, but
the amount of net assets after dividends must be maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriatedas a legal reserve (a component of retained earnings) or as additional paid-in capital (acomponent of capital surplus), depending on the equity account charged upon the payment ofsuch dividends until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may be reversed without limitation. The Companies Act also
provides that common stock, legal reserve, additional paid-in capital, other capital surplus andretained earnings can be transferred among the accounts within equity under certain
conditions upon resolution of the shareholders.
c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose ofsuch treasury stock by resolution of the Board of Directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution to the shareholders which isdetermined by a specific formula. The Companies Act also provides that companies canpurchase both treasury stock acquisition rights and treasury stock.

25

13. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income
taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately
30.6% for the years ended February 29, 2024 and February 28, 2023.
The tax effects of significant temporary differences and tax loss carryforwards which resulted indeferred tax assets and liabilities at February 29, 2024 and February 28, 2023, are as follows:
Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Deferred tax assets:
Unrealized profit¥4,137¥1,873$27,457

Liability for retirement benefits

952

962

6,318

Accrued bonuses

521

447

3,457

Accrued product warranty costs

222

245

1,473

Tax loss carryforwards (Note 2)

113

1,215

749

Inventories

878

701

5,827

Investment securities

228

230

1,513

Loss on impairment of long-lived assets

126

77

836

Other

1,020

787

6,769

Total of tax loss carryforwards and temporary differences

8,202

6,542

54,436

Less valuation allowance for tax loss carryforwards (Note 2)(113)(1,210)(749)

Less valuation allowance for temporary differences(5,297)(4,137)(35,156)

Total valuation allowance (Note 1)(5,410)(5,347)(35,906)

2,791

1,194

18,523

Accelerated depreciation in overseas subsidiaries

112

116

743

Unrealized gain on available-for-sale securities

601

302

3,988

Undistributed earnings of overseas subsidiaries

350

302

2,322

Asset for retirement benefits

512

327

3,398

Deferred tax assets
Deferred tax liabilities:

119

96

789

Deferred tax liabilities

Other

1,696

1,145

11,256

Net deferred tax assets¥1,095¥48$7,267

Notes:
1.	Valuation allowance increased by ¥62 million ($411 thousand) mainly because the valuation
allowance relating to elimination of unrealized profit increased and the valuation allowance fortemporary differences increased as a result of review of collectability of deferred tax assets
due to a decrease in estimates of future taxable income of the Company, although thevaluation allowance for tax loss carryforwards of the Company decreased.

26

2.	The expiration of tax loss carryforwards, the related valuation allowances and the resulting net
deferred tax assets as of February 29, 2024 and February 28, 2023, were as follows:

February 29, 2024
Deferred tax assets relating to
tax loss carryforwards *aLess valuation allowance fortax loss carryforwards
Net deferred tax assets
relating to tax loss
carryforwards

February 28, 2023
Deferred tax assets relating to
tax loss carryforwards *aLess valuation allowance fortax loss carryforwards
Net deferred tax assets
relating to tax loss
carryforwards

February 29, 2024
Deferred tax assets relating to
tax loss carryforwards *aLess valuation allowance fortax loss carryforwards
Net deferred tax assets
relating to tax loss
carryforwards

After
1 Yearthrough
2 Years

1 Yearor LessAfter
2 Years
through
3 Years

Millions of Yen
After
3 Years
through
4 Years

After
4 Years
through
5 Years

After
5 Years

Total

¥ 12

¥ 101

¥ 113

(12)

(101)

(113)

0

After
1 Yearthrough
2 Years

1 Yearor LessAfter
2 Years
through
3 Years

Millions of Yen
After
3 Years
through
4 Years

After
4 Years
through
5 Years

After
5 Years

0 *b

Total

¥9

¥ 921

¥ 38

¥ 21

¥ 16

¥ 209

¥ 1,215

(9)

(921)

(38)

(21)

(16)

(203)

(1,210)0

1 Yearor Less

5

After
1 Yearthrough
2 Years

Thousands of U.S. Dollars
After
After
After
2 Years
3 Years
4 Years
throughthroughthrough
3 Years
4 Years
5 Years

After
5 Years

5 *b

Total

$ 79

$ 670

$ 749

(79)

(670)

(749)

0

0 *b

*a	Deferred tax assets relating to tax loss carryforwards are computed by multiplying the normal
effective statutory tax rate.
*b	Net deferred tax assets recorded as of February 29, 2024 and February 28, 2023, at ¥0
million ($0 thousand) and ¥5 million are recognized for tax loss carryforwards of ¥113 million($749 thousand) and ¥1,215 million (computed by multiplying the normal effective statutory
tax rate), respectively. These deferred tax assets as of February 29, 2024 and February 28,
2023, are recognized for tax loss carryforwards of ¥0 million ($0 thousand) recorded by
FURUNO LIFEBEST CO., LTD., which is a consolidated subsidiary, and ¥1,215 million mainly
recorded by the Company and FURUNO SYSTEMS CO., LTD., which is a consolidated
subsidiary, respectively. No valuation allowance is provided for the portion that is deemed tobe recoverable based on expected future taxable income.

27

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates
reflected in the accompanying consolidated statement of income for the years ended February
29, 2024 and February 28, 2023, is as follows:
2023

2024

Normal effective statutory tax rate

30.6%

30.6%

Lower income tax rates applicable to income in certain foreign countries(8.6)(14.5)

Expenses not deductible for income tax purposes

3.3

3.0

Per capita inhabitant tax

0.5

1.5

Nontaxable dividends and other income

(1.2)

(0.6)

Undistributed earnings of overseas subsidiaries

0.6

0.8

Valuation allowance for deferred tax assets

0.3

8.2

Other – net

(1.7)

13.0

23.8%

42.0%

Actual effective tax rate

Accounting for National and Local Income Taxes and the Related Tax Effect
The Company and its domestic consolidated subsidiaries have adopted the Group Tax Sharing
System from the fiscal year ended February 29, 2024, and are accounting for national and local
income taxes and the related tax effect in accordance with the “Practical Solution on the
Accounting and Disclosure under the Group Tax Sharing System” (PITF No. 42, August 12,2021).

14. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses in the accompanying consolidated statement ofincome for the years ended February 29, 2024 and February 28, 2023, mainly consisted of thefollowing:Thousands of
U.S. Dollars
2024

Millions of Yen
2024
2023

Employees’ salaries and wages¥12,055¥10,785$80,009

1,545

1,371

10,254

62

(0)

411

1,411

1,217

9,364

686

610

4,552

Travel and communication expenses

1,274

1,197

8,455

Depreciation and amortization

1,394

1,286

9,252

Employees’ bonuses
Provision for allowance for doubtful receivables
Provision for employees’ bonuses
Retirement benefit expenses

15. RESEARCH AND DEVELOPMENT COSTS
Research and development costs included in “SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES” were ¥5,987 million ($39,735 thousand) and ¥5,694 million for the years ended
February 29, 2024 and February 28, 2023, respectively.

16. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESa. Status of Financial Instruments(1) Group policy for financial instruments
The Group raises necessary funds to support its principal business plans to produce andsell marine electronic equipment and industrial electronic equipment. Cash surpluses, ifany, are invested in low-risk financial assets. Short-term bank loans are used to fundongoing operations. Derivatives are not used for speculative purposes, but to manage
exposure to financial risks as described below.

28

(2) Nature and extent of risks arising from financial instruments
Trade receivables, such as notes receivable and accounts receivable, are exposed tocustomer credit risk.
Foreign currency denominated trade receivables arising from global activities are exposedto the market risk of fluctuations in foreign currency exchange rates.
Investment securities, mainly equity instruments of customers and suppliers of the Group
held for business or capital alliance purposes, are exposed to the risk of market pricefluctuation.
Payment terms of trade payables, such as notes payable and accounts payable, are lessthan one year. Certain trade payables arising from import of raw materials, which aredenominated in foreign currencies, are exposed to the market risk of fluctuations in foreign
currency exchange rates.
Maturities of bank loans, mainly for the purpose of financing necessary working funds, areless than five years after the balance sheet date. Certain bank loans are exposed to themarket risk of fluctuations in variable interest rates. Those risks are mitigated by using
derivatives such as interest rate swaps.
Derivatives mainly consist of interest rate swaps which are used to avoid or mitigate themarket risks from changes in interest rates. For hedging instruments and hedged items
concerning hedge accounting and hedging policies and hedge effectiveness, please see
Note 2.t “Derivatives and Hedging Activities” under “SUMMARY OF SIGNIFICANTACCOUNTING POLICIES.”(3) Risk management for financial instruments
Credit Risk Management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay orservice debt according to the contractual terms.
The Company manages its credit risk from trade receivables by monitoring payment
terms and balances of major customers and identifying the default risk of counterparties at
an early stage in accordance with the credit control policy. The consolidated subsidiaries
have similar control policies pursuant to the Company’s credit control policy. Derivatives areentered into with only high-credit rating financial institutions and, accordingly, credit risk
arising from default of the counterparties is kept at a minimum. The maximum credit risk
exposure of financial assets as of the consolidated balance sheet date is represented bytheir carrying values exposed to credit risk.
Market Risk Management (Foreign Exchange Risk and Interest Rate Risk)
The Group hedges foreign currency trade receivables and payables against market risk
from fluctuations in foreign currency exchange rates identified by currency and by monthusing principally forward foreign currency contracts. Depending on exchange market
conditions, the Group makes forward foreign currency contracts for foreign currency tradereceivables and payables that are certainly expected to occur. In addition, the Grouputilizes interest rate swaps to mitigate the risk from changes in interest rates associatedwith bank loans.
Investment securities are managed by monitoring market values and financial position ofissuers on a regular basis and continuously reviewing the holding status by taking into
consideration the relationship with the counterparties.
Derivative transactions are executed and controlled based on internal guidelines, whichprescribe the transaction limits and procedures of the finance department of eachcompany, and the positions are identified on a regular basis. In addition, the responsible
division of the Company is informed of the status of transactions by each Group company
on a regular basis to control and confirm the positions.
Liquidity Risk Management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations infull on maturity dates.
The Group manages its liquidity risk by preparing and updating the financial plans of the
Accounting Department based on the reports from each division.
(4) Supplementary explanation about fair values of financial instruments
In determining fair values of financial instruments, variable factors are incorporated andtherefore, such values may change by adopting different presumptions.

29

b. Fair Value of Financial Instruments
Millions of Yen

February 29, 2024
Investment securities:

Carrying Amount

Available-for-sale securities
Total assets
Long-term debt, including current portion
Total liabilities
Derivatives (*3)

Fair Value

Unrealized Gain

¥3,201¥3,201¥3,201¥3,201¥11,416¥11,400¥(16)¥11,416¥11,400¥(16)¥(89)¥(89)
Millions of Yen

February 28, 2023
Investment securities:

Carrying Amount

Available-for-sale securities
Total assets
Long-term debt, including current portion
Total liabilities
Derivatives (*3)

Fair Value

Unrealized Gain

¥2,240¥2,240¥2,240¥2,240¥11,308¥11,287¥(20)¥11,308¥11,287

¥(20)

¥21

¥21

Thousands of U.S. Dollars

February 29, 2024
Investment securities:

Carrying Amount

Available-for-sale securities
Total assets
Long-term debt, including current portion
Total liabilities
Derivatives (*3)

Fair Value

Unrealized Gain

$21,245$21,245$21,245$21,245$75,768$75,662$(106)$75,768$75,662$(106)$(590)$(590)*1 “Cash and cash equivalents,” “Notes receivable – trade,” “Accounts receivable – trade,” “Electronically recorded receivables –operating,” “Notes payable – trade,” “Accounts payable – trade,” “Electronically recorded obligations – operating” and “Short-termbank loans” are omitted as they either comprise cash or are settled in a short period, and their carrying amount approximates
their fair value.
*2 Shares that do not have a market price, etc. as of February 29, 2024 and February 28, 2023, which are not included in“Investment securities,” are as follows:
Carrying AmountThousands ofMillions of Yen
U.S. Dollars
February 28 or 29
2024
2023
2024
Unlisted equity securities
¥900
¥847
$5,973*3 Net receivables or payables arising from derivative transactions to which hedge accounting is not applied and deferral hedge
accounting is applied are presented in a net amount, and net payables are presented in parentheses.

30Note: Maturity analysis for financial assets and securities with contractual maturities
Millions of Yen
Due in 1 Year Due after 1 Year Due after 5 Yearsor Less
through 5 Years through 10 Years¥11,158

February 29, 2024
Cash and cash equivalents
Short-term investments

Due after
10 Years

628

Notes receivable – trade729

Accounts receivable – trade

19,576

Electronically recorded receivables – operating

1,054

Total

¥33,147
Millions of Yen
Due in 1 Year Due after 1 Year Due after 5 Yearsor Less
through 5 Years through 10 Years¥14,683

February 28, 2023
Cash and cash equivalents
Short-term investments

Due after
10 Years

693

Notes receivable – trade942

Accounts receivable – trade

16,747

Electronically recorded receivables – operating

1,076

Total

¥34,142
Thousands of U.S. Dollars
Due in 1 Year Due after 1 Year Due after 5 Yearsor Less
through 5 Years through 10 Years$74,055

February 29, 2024
Cash and cash equivalents
Short-term investments

Due after
10 Years

4,168

Notes receivable – trade

4,838

Accounts receivable – trade129,926

Electronically recorded receivables – operating

6,995

Total

$219,997

Please see Note 10 for annual maturities of long-term debt.

c. Fair Value Information by Level within the Fair Value Hierarchy
The fair value of financial instruments is classified into the following three levels according to theobservability and materiality of inputs used to measure fair value.
Level 1 fair value: Fair value measured using observable inputs, i.e. quoted prices in active
markets for assets or liabilities that are the subject of the measurement
Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs
Level 3 fair value: Fair value measured using unobservable inputs
If multiple inputs are used that are significant to the fair value measurement, the fair value
measurement is categorized in its entirety in the level of the lowest level input that is significant
to the entire measurement.

31

(1) Financial instruments measured at fair value
Millions of Yen
Fair Value

February 29, 2024
Investment securities:

Level 1

Level 2

Level 3

Total

Available-for-sale securities:
Equity securities¥3,103Other¥3,103
¥97

97

¥97

¥3,201¥89¥   89¥89¥   89Derivatives:
Currency related
Total assets¥3,103

Derivatives:
Currency related
Total liabilities
February 28, 2023
Investment securities:

Available-for-sale securities:
Equity securities
Other¥2,162¥2,162

78

78

Derivatives:
Currency related
Total assets¥2,240

¥21

21

¥21

¥2,261¥ 0¥    0¥ 0¥    0Derivatives:
Currency related
Total liabilities

Thousands of U.S. Dollars
Fair Value

February 29, 2024
Investment securities:

Level 1

Level 2

Level 3

Total

Available-for-sale securities:
Equity securities$20,594

Other$20,594
$643

643

$643

$21,245$590$   590$590$   590

Derivatives:
Currency related
Total assets$20,594

Derivatives:
Currency related
Total liabilities

32

(2) Financial instruments other than those measured at fair value
Millions of Yen
Fair Value

February 29, 2024
Long-term debt

Level 1

Total liabilities
February 28, 2023
Long-term debt

Total liabilities

Level 2

Level 3

Total

¥11,400¥11,400¥11,400¥11,400¥11,287¥11,287¥11,287¥11,287

Thousands of U.S. Dollars
Fair Value

February 29, 2024
Long-term debt

Level 1

Total liabilities

Level 2

Level 3

Total

$75,662$75,662$75,662$75,662

Note: A description of the valuation technique(s) and inputs used in the fair value measurements
Investment Securities
The fair value of listed shares and investment trust is measured using quoted prices. The fair value of listed shares is classified
as Level 1 as they are traded in active markets. The fair value of investment trust is classified as Level 2 as they are measured
using the standard price determined by the securities company, which is an observable input.
Derivatives
The fair value of derivatives is determined based on the prices presented by the financial institutions as counterparties andclassified as Level 2.
Long-Term Debt
The fair value of long-term debt is measured by discounting the sum of the principal and interest using the remaining life of
the debt and interest rate reflecting credit risk and classified as Level 2.

33

17. DERIVATIVESThe Group enters into foreign currency forward contracts to hedge foreign exchange risk
associated with certain assets and liabilities denominated in foreign currencies. The Group also
enters into interest rate swap contracts to manage its interest rate exposures on certain liabilities.
All derivative transactions are entered into to hedge interest and foreign currency exposuresincorporated within the Group’s business. Accordingly, market risk in these derivatives is basicallyoffset by opposite movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international financial
institutions, the Group does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal
policies which regulate the authorization and credit limit amount.
Derivative Transactions to Which Hedge Accounting Is Not Applied at February 29, 2024
and February 28, 2023
Currency-related derivatives
Contract
AmountFebruary 29, 2024
Foreign currency forward contracts:
Selling GBP
Buying EUR
February 28, 2023
Foreign currency forward contracts:
Selling NOK
Buying USD
Buying GBP
Buying EUR

Unrealized
Gain (Loss)

¥722
2,963

¥(0)
(88)

¥(0)
(88)

¥

¥ 0
0
21
(0)

¥ 0
0
21
(0)

Thousands of U.S. Dollars
Contract AmountDue after One Year Fair Value

Unrealized
Gain (Loss)

$(0)
(584)

$(0)
(584)

16
1
601
57

Contract
AmountFebruary 29, 2024
Foreign currency forward contracts:
Selling GBP
Buying EUR

Millions of Yen
Contract AmountDue after One Year Fair Value$4,791
19,665Derivative Transactions to Which Hedge Accounting Is Applied at February 29, 2024 andFebruary 28, 2023
Interest-related derivatives
February 29, 2024
Interest rate swaps:
Receivable floating rate/payable fixed rate

Hedged Item

Long-term
debt

February 28, 2023
Interest rate swaps:
Receivable floating rate/payable fixed rate

Hedged Item

Long-term
debtMillions of Yen
Contract
Contract AmountAmountDue after One Year

¥2,700¥1,000Note

Millions of Yen
Contract
Contract AmountAmountDue after One Year

Fair Value¥2,700

Note

Thousands of U.S. Dollars
Contract
Contract Amount
Hedged Item
AmountDue after One Year

February 29, 2024
Interest rate swaps:
Receivable floating rate/payable fixed rateLong-term
debt

Fair Value$17,919$6,637

Fair Value

Note

Note: The fair values of interest rate swaps, which are accounted for together with the long-term debt as the hedged item, areincluded in the fair values of the relevant long-term debt, if they qualify for hedge accounting.

34

18. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended February 29, 2024 andFebruary 28, 2023, were as follows:
Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Unrealized gain on available-for-sale securities:
Gains arising during the year¥ 961

Reclassification adjustments to profit or loss

¥423

$ 6,378(43)

Amount before income tax effect961

Income tax effect

380

6,378

(298)

(59)

(1,977)¥ 662¥321$ 4,393¥2,562¥3,064$17,004

2,562

3,064

17,004¥2,562¥3,064$17,004¥ 476¥(721)$ 3,159

248

135

1,645

Amount before income tax effect

724

(585)

4,805

Income tax effect

(192)

124

(1,274)¥ 532¥(460)$ 3,530

¥

23

¥45

$

152

Total

¥

23

¥45

$

152

Total other comprehensive income¥3,780¥2,970$25,087

Total
Foreign currency translation adjustments:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Defined retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss

Total
Share of other comprehensive income in an associate accounted for by the equity method:
Gains arising during the year35

19. NET INCOME PER SHARE
The financial data for the computation of basic net income per share (“EPS”) for the years ended
February 29, 2024 and February 28, 2023, is as follows:
Thousands
Millions of Yenof Shares
Net Income Attributable
Weightedto Owners of the Parent Average Shares

Yen

U.S. Dollars
EPS

Year Ended February 29, 2024
Basic EPS—Net income available
to common shareholders¥6,23831,579¥197.56

Year Ended February 28, 2023
Basic EPS—Net income available
to common shareholders¥1,34831,555¥42.72$1.31

Diluted EPS is not disclosed because the Company did not issue dilutive securities for the years
ended February 29, 2024 and February 28, 2023.

20. SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at February 29, 2024, was approved at theCompany’s shareholders’ meeting held on May 23, 2024:
Year-end cash dividends, ¥40 ($0.26) per share

36

Millions ofYen

Thousands of
U.S. Dollars¥1,263$8,382

21. REVENUE RECOGNITION
a. Disaggregation of Revenue from Contracts with Customers
Millions of Yen

Year Ended February 29, 2024
Japan

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal¥22,591¥10,099¥3,555 ¥36,246¥322 ¥36,569

Total

Other
(Note)

Total

Americas12,43432

12,467

12,467

Europe31,698

1,205

32,90332,903

Asia

24,1801,469

25,64925,649Other regions
Revenue arising from contracts with customers
Other revenue

6,899

4

6,904

6,904

¥97,804¥12,811¥3,555 ¥114,171¥322 ¥114,494

356

356

356

Sales to external customers¥98,160¥12,811¥3,555 ¥114,527¥322 ¥114,850

Year Ended February 28, 2023
Japan

¥19,337¥ 8,727¥4,155 ¥ 32,219¥341 ¥ 32,561

Americas

9,893

20

9,913

9,913

Europe22,6991,326

24,02524,025

Asia

18,163

1,028

19,192

19,192

5,319

5,319

¥11,102¥4,155 ¥ 90,670¥341 ¥ 91,012

313

313

¥4,155 ¥ 90,983¥341 ¥ 91,325

Other regions
Revenue arising from contracts with customers
Other revenue
Sales to external customers

5,319¥75,412313¥75,725¥11,102

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Thousands of U.S. Dollars

Year Ended February 29, 2024
Japan

$149,936$67,027

Total$23,594 $240,565

Other(Note)

Total$2,137 $242,709

Americas82,524212

82,74382,743

Europe210,380

7,997

218,377

218,377

Asia

160,483

9,749

170,232

170,232

Other regions

45,78826

45,82145,821

Revenue arising from contracts with customers $649,127$85,026$23,594 $757,755$2,137 $759,899

2,362

2,362

$85,026$23,594 $760,118$2,137 $762,261

Other revenue
Sales to external customers

2,362$651,490

Note: “Other” includes the electromagnetic environmental testing business, etc. which do not belong to any reportable segment.

37

b. Basic Information for Understanding Revenue from Contracts with Customers
Basic information for understanding revenue from contracts with customers is as described in
Note 2.l “Significant Revenue and Expenses.”c.	Reconciliation of Satisfaction of Performance Obligations within Contracts with
Customers and Cash Flows Arising from Such Contracts, and the Amount and Timing of
Revenue Arising from Customers Existing at the End of the Reporting Period That Are
Expected to Be Recognized in or after the Following Reporting Period(1) Balance of contract assets and contract liabilities
Thousands of
U.S. Dollars

Millions of Yen

Receivables from contracts with customers (beginning balance)

2024¥17,6892023
2024¥15,080 $117,402

Receivables from contracts with customers (ending balance)

20,306

17,689134,771

Contract assets (beginning balance)

3,847

3,017

25,532Contract assets (ending balance)

4,314

3,847

28,632Contract liabilities (beginning balance)

2,756

2,526

18,291

Contract liabilities (ending balance)

2,483

2,756

16,479Contract assets are primarily related to the unbilled rights of the Group concerning
considerations for revenue recognized in accordance with the satisfaction of performanceobligations and are reclassified to receivables from contracts with customers when the rights
of considerations become billable.
Contract liabilities are primarily related to advances received from customers. Contract
liabilities are reversed as revenue is recognized.
Revenue recognized in the fiscal year ended February 29, 2024, that was included in thecontract liability balance at the beginning of the period was ¥1,525 million ($10,121
thousand) (¥2,293 million in 2023). There was no significant change in the balances ofcontract assets and contract liabilities.
The amount of revenue recognized in the fiscal year ended February 29, 2024, fromperformance obligations that were satisfied (or partially satisfied) in previous periods is
immaterial (primarily related to changes in transaction prices).
(2) Transaction prices allocated to the remaining performance obligations
The Group has applied the practical expedient on contracts with an original expected
duration of one year or less for the purpose of this note “Transaction prices allocated to theremaining performance obligations,” and has not included such contracts in this note. The
total amount of transaction prices allocated to the remaining performance obligations by theBusiness is as follows: These contracts are expected to be recognized as revenue withinapproximately two years.
Thousands of
U.S. Dollars

Millions of Yen

Marine Business

2024¥11,753

Industrial Business

5,075

Wireless LAN/Handy Terminal Business

2023
2024
¥ 8,251 $ 78,004

4,025

33,682

1

Other
Total

¥16,82838¥12,278 $111,687

22. SEGMENT INFORMATION
Under ASBJ Statement No. 17, “Accounting Standard for Segment Information Disclosures,” andASBJ Guidance No. 20, “Guidance on Accounting Standard for Segment Information
Disclosures,” an entity is required to report financial and descriptive information about its
reportable segments. Reportable segments are operating segments or aggregations of operating
segments that meet specified criteria. Operating segments are components of an entity about
which separate financial information is available and such information is evaluated regularly by thechief operating decision maker in deciding how to allocate resources and in assessing
performance. Generally, segment information is required to be reported on the same basis as isused internally for evaluating operating segment performance and deciding how to allocate
resources to operating segments.
a. Description of Reportable Segments
The Group’s reportable segments are those for which separate financial information isavailable and regular evaluation by the Company’s management is being performed inorder to decide how resources are allocated among the Group.
The principal business of the Group is manufacturing and sales of marine equipment,
industrial electronics equipment, wireless LAN system and handy terminals. The Company
consists of divisions separated by product and service, and each division designs
comprehensive strategies for its products and services and develops relevant businessactivities. Each subsidiary develops business activities from a management perspective
within the Group. Accordingly, the Group consists of business segments by product andservice, which are the “Marine” business, the “Industrial” business, and the “Wireless LAN/
Handy Terminal” business, as the reportable segments.
The major products in the “Marine” business are navigation equipment, fishingequipment and radio communication equipment, etc. The major products in the “Industrial”
business are medical equipment, ITS equipment, GPS equipment, and avionics electronicequipment, etc. The major products in the “Wireless LAN/Handy Terminal” business arewireless LAN system and handy terminals, etc.
b.	Methods of Measurement for the Amounts of Sales, Profit, Assets, Liabilities and Other
Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in
Note 2 “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.”
Segment profit corresponds to the figure based on “Operating income” in the
consolidated statement of income.
Intersegment sales or transfers are based on the arm’s-length price.

39

c. Information about Sales, Profit, Assets, Liabilities and Other Items
Millions of Yen
2024

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Total

Other
(Note 1)

Total

Reconciliations Consolidated(Note 2)
(Note 3)

Sales:
Sales to external customers ¥98,160 ¥12,811
Intersegment sales
or transfers

103

67

¥3,555 ¥114,527
205¥  322 ¥114,850

376

645

¥114,850

1,021 ¥(1,021)

Total¥98,264 ¥12,878¥3,761 ¥114,904¥  968 ¥115,872 ¥(1,021)¥114,850

Segment profit (loss)¥ 7,102 ¥   243¥  132 ¥  7,478¥ (122)¥  7,355 ¥(836)¥  6,519

Segment assets

71,164

7,369

3,234

81,767

1,046

82,814

2,411

173

130

2,714

33

2,748

31,556 114,370

Other:
Depreciation

664

3,413

Equity in earnings of an
associate accounted forby the equity method

98

98

98

98

Investment of an associateaccounted for by theequity method

219

219

219

219

Increase in property,
plant and equipment
and intangible assets

2,310

330

278

2,919

25

2,945

866

3,811

Millions of Yen
2023

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Other(Note 1)

Total

Reconciliations Consolidated(Note 2)
(Note 3)

Total

Sales:
Sales to external customers ¥75,725 ¥11,102
Intersegment sales
or transfers

50

58¥4,155 ¥90,983
216

324

¥  341 ¥91,325
607¥91,325932 ¥  (932)

Total¥75,776 ¥11,161¥4,371 ¥91,308¥  948 ¥92,257 ¥  (932) ¥91,325

Segment profit (loss)¥ 1,248 ¥128¥  514 ¥ 1,891¥(88) ¥ 1,803 ¥  (279) ¥1,523

Segment assets

66,653

9,099

3,653

79,406

1,026

80,433

2,306

160

173

2,640

37

2,677

25,963 106,396

Other:
Depreciation

383

3,061

Equity in earnings of an
associate accounted forby the equity method

86

86

86

86

Investment of an associateaccounted for by theequity method

219

219

219

219

Increase in property,
plant and equipment
and intangible assets

1,503

198

106

40

1,808

11

1,819

387

2,207

Thousands of U.S. Dollars
2024

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Total

Other
(Note 1)

Reconciliations Consolidated(Note 2)
(Note 3)

Total

Sales:
Sales to external customers $651,490 $85,026 $23,594 $760,118$2,137 $762,261

Intersegment sales
or transfers

4,280

683

444

1,360

2,495

$762,261

6,776 $(6,776)

Total$652,180 $85,471 $24,961 $762,620$6,424 $769,044 $(6,776)$762,261

Segment profit (loss)$ 47,136 $ 1,612 $876 $ 49,631$ (809)$ 48,815 $(5,548)$ 43,266

Segment assets

472,316

48,908

6,942 549,638 209,437 759,076

16,001

1,148

21,464 542,689

Other:
Depreciation

862

18,012219

18,2384,406

22,652Equity in earnings of an
associate accounted forby the equity method

650

650

650

650

Investment of an associateaccounted for by theequity method

1,453

1,453

1,453

1,453

Increase in property,
plant and equipment
and intangible assets

15,331

2,190

1,845

19,373

165

19,546

5,747

25,293

Notes:
1.	“Other” is a business segment which is not included in reportable segments and includes the electromagnetic environmental
testing business and other businesses.
2.	The nature of “Reconciliations” is as follows:(1)	“Reconciliations” of “Segment profit (loss)” includes general and administrative expenses of the head office administration
departments which do not belong to any reportable segment.
(2)	“Reconciliations” of “Segment assets” includes assets of the head office administration departments, which do not belong to
any reportable segment, mainly consisting of common use assets, investments and other assets.
(3)	“Reconciliations” of “Increase in property, plant and equipment and intangible assets” includes capital investments, which do
not belong to any reportable segment.
3. Segment profit (loss) is reconciled with operating income in the consolidated statement of income.

Other Related Informationa. Information by Product and Service
	Information by product and service is omitted since similar information is disclosed in thesegment information.
b. Information by Geographic Region(1) Sales
Millions of Yen
2024
Japan

¥36,569

Americas¥12,467

EuropeAsia¥33,259¥25,649

Other Regions¥6,904

Total¥114,850

Millions of Yen
2023
Japan

¥32,561

Americas¥9,913

EuropeAsia¥24,338¥19,192

Other Regions¥5,319Total¥91,325

Thousands of U.S. Dollars
2024
Japan

$242,709

Americas$82,743

Europe$220,740

Asia$170,232

Other Regions$45,821

Total$762,261

Notes:
1. Sales are classified by country or region based on the location of customers.
2.	Asia for the year ended February 29, 2024, includes sales of China in an amount of ¥12,772 million($84,768 thousand) which accounts for more than 10% of net sales recorded in the consolidated
statement of income.

41

(2) Property, plant and equipment
Millions of Yen
2024
Japan

¥10,577

Americas

Europe¥555

Asia¥2,053

Other Regions¥1,367

Total

¥197

¥14,751

Millions of Yen
2023
Japan

¥10,243

Americas

Europe¥520

Asia¥1,727

Other Regions¥1,214

Total

¥209

¥13,914

Thousands of U.S. Dollars
2024
Japan

$70,199

Americas$3,683

EuropeAsia$13,625$9,072Other Regions

Total$1,307$97,902c. Information by Major Customer
	Information by customer is omitted, since there is no customer to whom net sales
accounts for more than 10% of total net sales recorded in the consolidated statement ofincome.
d. Information about Loss on Impairment of Long-Lived Assets
Millions of Yen
2024

MarineLoss on impairment¥5

Reportable Segment
Wireless LAN/
Industrial Handy Terminal

¥7

Total

Other

¥12

Total

Reconciliations

¥12

Total

¥12

Millions of Yen
2023

MarineLoss on impairment¥8

Reportable Segment
Wireless LAN/
Industrial Handy Terminal

¥16

Total

Other

¥24

Total

Reconciliations

¥24

Total

¥24

Thousands of U.S. Dollars
2024

MarineLoss on impairment$33

Reportable Segment
Wireless LAN/
Industrial Handy Terminal

$46

Total

$79

42

Other

Total

$79

Reconciliations

Total

$79

e. Information about Amortization and Unamortized Balance of Goodwill
Millions of Yen
2024

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Total

Other

Total

Reconciliations

Total

Amortization

¥ 131

¥ 131

¥ 131

¥ 131

Unamortized balance

1,047

1,047

1,047

1,047

Millions of Yen
2023

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Total

Other

Total

Reconciliations

Total

Amortization

¥115

¥115

¥115

¥115

Unamortized balance

819

819

819

819

Thousands of U.S. Dollars
2024

MarineReportable Segment
Wireless LAN/
Industrial Handy Terminal

Total

Other

Total

Reconciliations

Total

Amortization$  869$  869$  869$  869Unamortized balance

6,948

6,948

6,948

6,948

23. SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENT OF CASH FLOWS(1)	Major Components of Assets and Liabilities of Consolidated Subsidiary Disposed of by Saleof Shares
Year Ended February 28, 2023
The Company sold its shares of FURUNO EURUS LLC. As a result, FURUNO EURUS LLC
was excluded from the scope of consolidation.
The assets and liabilities of FURUNO EURUS LLC at the time of sales and a reconciliation
between the selling price and the payment for the sales of shares are as follows:
Millions of Yen

Current assets¥879Long-lived assets

27

Current liabilities(571)

Long-term liabilities(13)

Foreign currency translation adjustments(4)

Loss on sales of shares(79)

Selling price239

Non-trade receivables

(204)

Other

(12)

Cash and cash equivalents(215)

Net payment for sales of shares resulting in a change in scope of consolidation

43¥(191)

(2) Description of Significant Transactions Not Requiring Use of Cash or Cash Equivalents
Year Ended February 28, 2023
Former unconsolidated subsidiaries FURUNO (DALIAN) TECHNOLOGY CO., LTD.,
ELECTRONIC NAVIGATION LIMITED, FUNOTEC (DALIAN) CO., LTD., TELKO AS and TELKOINTERNATIONAL AB have been included in the scope of consolidation from the fiscal year
ended February 28, 2023, due to their increased significance. The amounts of increase in
assets and liabilities as a result of the inclusion of the subsidiaries in the scope of
consolidation were as follows:
Millions of Yen

Current assets¥1,829Long-lived assets

370

Total assets¥2,200Current liabilities¥  895Long-term liabilities

172

Total liabilities¥1,068Current assets included ¥575 million of cash and cash equivalents at the beginning of
consolidation, which is presented under “INCREASE IN CASH AND CASH EQUIVALENTSRESULTING FROM NEW CONSOLIDATION.”(3)	Major Components of Assets and Liabilities of Newly Consolidated Subsidiary by Acquisitionof Shares
Year Ended February 29, 2024
The assets and liabilities of SARL ROBIN MARINE at the time of consolidation and areconciliation between the acquisition cost and the payment for the acquisition of shares are
as follows:
Millions of Yen

Current assets
Long-lived assets
GoodwillThousands of
U.S. Dollars¥1,272$8,442

67

444

314

2,084

Current liabilities(1,041)(6,909)Long-term liabilities

(19)

(126)

Acquisition cost of shares

593

3,935

Cash and cash equivalents(330)(2,190)Foreign currency translation adjustments

(8)

(53)

Net payment for acquisition of shares¥ 254$1,685******

44

Subsidiaries
As of February 29, 2024

Consolidated Subsidiaries

EquityOwnership (%)

Country

Company Name

Main BusinessJapan

MARISAT COMMUNICATION SERVICE INC.
FURUNO SYSTEMS CO., LTD.
FURUNO LIFEBEST CO., LTD.
LABOTECH INTERNATIONAL CO., LTD.

Clearing of communication charges
Sales of industrial electronic products
Insurance agent and leasing of marine electronic equipment
EMC and environmental test laboratory

100
100
100
100

U.S.A.

FURUNO U.S.A., INC.

Sales and services of marine electronic equipment

100

U.K.

FURUNO (UK) LTD.
FURUNO LEASING LTD.

Sales and services of marine electronic equipment
Leasing and sales of marine electronic equipment

100
100

Germany

FURUNO DEUTSCHLAND GmbH

Sales and services of marine electronic equipment

100

Holland

FURUNO EUROPE B. V.

Logistic services for Europe

100

Denmark

FURUNO DANMARK A/SEMRI A/S

Sales and services of marine electronic equipment
Sales and services of marine electronic equipment

100
100

SwedenFURUNO SVERIGE ABTELKO INTERNATIONAL AB

Sales and services of marine electronic equipment
Sales and services of marine electronic equipment

100
51

PolandFURUNO POLSKA Sp. zo. o.

Sales and services of marine electronic equipment

100

FranceFURUNO FRANCE S.A.S.
SARL ROBIN MARINE

Sales and services of marine electronic equipment
Sales and services of marine electronic equipment

100
100

Italy

FURUNO ITALIA S.R.L.

Sales and services of marine electronic equipment

100

Spain

FURUNO ESPAÑA, S.A.

Sales and services of marine electronic equipment

70

NorwayFURUNO NORGE A/STELKO AS

Sales and services of marine electronic equipment
Manufacturing of marine electronic equipment

100
51

GreeceFURUNO HELLAS S.A.

Sales and services of marine electronic equipment

100

CyprusFURUNO (CYPRUS) LTD

Sales and services of marine electronic equipment

100

Finland

FURUNO FINLAND OYSales and services of marine electronic equipment

100

China

FURUNO HONG KONG CO., LTD.
FURUNO CHINA CO., LIMITEDFURUNO SHANGHAI CO., LTD.
FURUNO (DALIAN) TECHNOLOGY CO., LTD.
FUNOTEC (DALIAN) CO., LTD.
FURUNO DONGGUAN CO., LTD.

Manufacturing of marine electronic equipment
Sales and services of marine electronic equipment
Sales and services of marine electronic equipment
Software development and service
Sales and services of marine electronic equipment
Manufacturing of marine electronic equipment

100
100
100
90.43
90.43
100

Singapore

FURUNO SINGAPORE PTE LTD

Sales and services of marine electronic equipment

100

PanamaFURUNO PANAMA, S.A.

Sales and services of marine electronic equipment

100

Indonesia

PT.FURUNO ELECTRIC INDONESIA

Sales and services of marine electronic equipment

100

Korea

FURUNO KOREA CO., LTD.

Sales and services of marine electronic equipment

100

Malaysia

FURUNO ELECTRIC (MALAYSIA) SDN. BHD.

Sales and services of marine electronic equipment

100

New Zealand

ELECTRONIC NAVIGATION LIMITED

Sales and services of marine electronic equipment

60

Unconsolidated Subsidiaries
Country

Company Name

Main BusinessJapan

FURUNO SOFTECH CO., LTD.

Software development and service

Equity method Subsidiaries
Country

Company Name

Main BusinessFranceSIGNET S.A.S

Sales and software development

45

EquityOwnership (%)

100
EquityOwnership (%)

49.28

F i v e - Ye a r S u m m a r y
FURUNO ELECTRIC CO., LTD. and Consolidated Subsidiaries
Years ended the last day of February

Thousands of
U.S. Dollars(Note 1)
2024

2020

2021

Millions of Yen
2022¥83,066¥82,255¥84,783

Operating income

2,411

3,740

2,532

1,523

6,519

43,266

Income before income taxes and minority interests

2,699

4,742

3,735

2,443

8,170

54,224

Net income (loss)

2,041

3,946

2,814

1,348

6,238

41,401

64.78

125.20

89.24

42.72

197.56

1.31

2023

2024

For the year:
Net sales:¥91,325 ¥114,850$762,261

Per share of common stock (Notes 2) (yen and U.S. dollars):
Basic net income (loss)

20.00

40.00

40.00

25.00

60.00

Weighted average number of shares outstanding (thousands)

Cash dividends applicable to the year

31,511

31,51931,53431,55531,579Research and development cost

4,266

5,303

5,458

5,694

5,987

39,735

Capital expenditure

1,887

2,542

3,133

1,616

1,678

11,136

Depreciation and amortization

3,246

3,160

3,161

3,061

3,413

22,652

Net cash provided by operating activities

8,041

8,512

6,193

(6,492)2,713

18,006

Net cash used in investing activities(3,175)(4,553)(4,389)(3,027)(3,589)(23,820)

Net cash provided by (used in) financing activities(4,194)(850)(3,518)

8,263(3,557)(23,607)¥76,133¥82,248¥85,973 ¥106,396 ¥114,370$759,076

At year-end:
Total assets
Interest-bearing debt

9,906

9,956

9,602

19,317

17,417

115,597

Shareholders’ equity

41,92545,35947,88052,11361,041

405,130

Number of employees

2,926

2,978

3,065

3,310

3,356

North America¥8,092¥8,113¥9,184¥9,913¥12,467$82,743

Europe19,407

18,22121,80824,33833,259220,740

Asia

19,29617,145

17,72519,19225,649170,232

Overseas sales:

Other

2,686

2,852

4,159

5,319

6,904

45,821

Total

49,482

46,33352,87858,76478,281

519,552

Return on sales

2.46%

4.80%

3.32%

1.48%

5.43%

Return on assets

3.50

6.00

4.40

2.70

7.40%

Return on equity

4.91

9.04

6.04

2.70

11.03%

Debt equity ratio

23.63

21.95

20.05

37.07

28.53%

Equity ratio

55.10

55.10

55.70

49.00

53.40%Key ratio (%):

Note: 1. U.S. dollar amounts have been converted from Japanese yen, for convenience only, at the rate of ¥150.67=U.S. $1, the approximate rate of exchange
prevailing at February 29, 2024.
2. See Note 2.s and Note 16 of the Notes to the Consolidated Financial Statements.

46

FURUNO ELECTRIC CO., LTD.
9-52 Ashihara-cho, Nishinomiya, 662-8580, Japanwww.furuno.co.jp