2nd Quarter of Fiscal Year 2022 (Ending February 28, 2023)

Financial Results Briefing Materials
October 14, 2022

FURUNO ELECTRIC CO., LTD.
Cautions:
This document is a translation of the Japanese original, which is authoritative.
The information listed in these materials regarding the Company’s forecasts are determined by management, based on the information available at the time ofannouncement, and potential risks and uncertainties. It should be noted that the actual results may differ substantially from these forecasts, due to these variouselements.
The numerical values shown in these materials are the monetary amounts listed in the consolidated balance sheet, consolidated profit-and-loss statement,
consolidated statement of changes in shareholders’ equity, and notes to consolidated financial statements. Shown values of less than one unit are truncated, andratios and other values are rounded off.
* “E” in this material represents that the figure is an estimation or a projection for operation.
** “FY” in this material indicates the fiscal year ending February 28 (29) of the succeeding year.
*** “2Q” in this material represents the six-month period beginning on March 1 and ending on August 31.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of 2nd Quarter of FY 2022
◆ Net Sales: Slight Increase➢ Decrease due to sales opportunities loss with production delays, butincrease in overseas sales for Marine Business helped by a weak yen◆ Gross Profit: Slight Decrease➢ Slight decrease in gross profit due to soaring material prices,but minimized by increase in sales for Marine Business◆ Operating Profit: Decrease➢ Increase in SG&A expenses with investments for future growth◆ Financial Results Forecast: Upward Revision➢ Gradual improvement in availability of parts and materials andrecovery trend in production activities➢ Full-year operating profit unchanged due to offset between
component prices increase and weak yen
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Increase in SG&A expenses with continuous investments for future growth
New Revenue Recognition

Old Revenue Recognition(Unit: Millions of yen)

FY 2021
2 Quarter

FY 2022
2 QuarterYear-over-Year(amount)

Year-over-Year(ratio)

FY 2022
2 Quarter

Net sales
Gross profit

43,13916,92343,297

+157

+0.4%

43,425

16,565(38.3%)-2.1%

16,606(39.2%)

-357

2,900

755
(1.7%)-73.9%

796(6.7%)-2,144

3,283

1,681
(3.9%)-48.8%

1,722(7.6%)-1,601

2,844

1,496

-1,347-47.4%

1,537(6.6%)(3.5%)

2,611

2,604

(6.1%)(6.0%)

2,256

1,348

(5.2%)(3.1%)

1,534

1,514

(3.6%)(3.5%)

107
130

120
135

nd

(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)

Profit attributable toowners of parent(Sales ratio)

R&D expenses(Sales ratio)

Capital investment(Sales ratio)

Depreciation expenses(Sales ratio)

ndnd(38.2%)(1.8%)(4.0%)(3.5%)-7-0.3%

2,604

-907

-40.2%

1,348-19-1.3%

1,514+13+5+13.1%
+3.5%

120
135

(6.0%)(3.1%)(3.5%)(Unit: Yen, annual average exchange rate)

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

3

Analysis of Increase/Decrease in Net Sales
Addition of consolidated subsidiaries and overseas sales increase in Marine Business(Unit: 100 Millions of Yen)

IndustrialBusiness440-2.0Asia

RevenueRecognition+1.3

Others

-0.6-7.1
OtherRegion

430

Japan-2.6

Americas+1.4Europe+3.1

WirelessLAN Systems
+1.3

-0.4
Consolidated
Subsidiaries

420+9.3431410

Marine Business+3.6433

434

400

FY 2021
2nd Quarter
Old Recognition
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Sales

+1.6

FY 2022
FY 2022
ndnd2 Quarter2 Quarter
Old Recognition New Recognition
4

Analysis of Increase/Decrease in Gross Profit on Sales
Increase in component prices but increase in overseas sales, etc. in Marine Business180(Unit: 100 Millions of Yen)MarineComponent
Prices Increase

Industrial
Decrease inInventory-RelatedExpenses, etc.

-10.0

160

Others

+1.5

170

169

RevenueRecognition+0.4-0.8

Industrial
Sales
Decrease

Wireless LANSystems
Change in
Product Mix-0.7-0.6

166

166

MarineOverseas Sales
Increase, etc.

+7.1
150

FY 2021
2nd Quarter
Old Recognition
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit on Sales-3.6

FY 2022
FY 2022
ndnd2 Quarter2 Quarter
Old Recognition New Recognition
5Factors Increasing SG&A Expenses

Continue to accelerate investments for future growth
Consolidated addition of subsidiaries for overseas R&D+4.2

Increase in personnel to strengthen service and R&D, etc.

+2.8

Increase in promotion expenses (exhibitions in new fields, etc.)+2.1

Increase in strategic investments in new businesses, etc.

+1.4

Foreign exchange impact on SG&A expenses+3.4

Increase in business-related expenses+2.3

Others+1.8
Increase in consolidated SG&A expenses

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+17.96

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

400日本 ■Americas
米州
欧州その他■Japan■Europeアジア■Asia ■Other350

21268679105

1084344300

250

Change in accounting standard
Marine Business:
Sales: -1.6, Profit: +0.8 (100M yen)
Net Sales 359 100M yen (+0.4% year-over-year)

Segment Profit 9.8 100M yen (-17.4 100M yen)

1377

200

82
150

39

⚫

⚫
⚫

Sales opportunities loss with production delays due todifficulties in obtaining parts and materials
Increase in Europe and Americas sales with weak yen
Decrease in profit due to increase in SG&A expenses
for future growth (service, R&D, etc.)◆Japan: Net sales 102 100M yen (-1.5%)➢ Decrease in sales of equipment for Fishery,increase in sales to Government◆Americas: Net sales 44 100M yen (+3.7%)➢ High demand for equipment for pleasure boats

10050“100M” stands for 100 Million

102103102

FY 2020
2nd Quarter

FY 2021
2nd Quarter

FY 2022
2nd Quarter0

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

◆Europe: Net sales 108 100M yen (+2.6%)➢ Increase in service sales, strong demand forMerchant, Fishery and Pleasure Boats◆Asia: Net sales 79 100M yen (-8.2%)➢ Decrease in sales of equipment for Fishery,Merchant newbuild projects recovering

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

90

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

80

Industrial Business:

30
60
50

61020
610211010

Change in accounting standard
Sales: +2.7, Profit: -0.5 (100M yen)

Net Sales 52 100M yen (-0.1% year-over-year)
Segment Loss 0.4 100M yen (+1.0 100M yen)
⚫

70

40

“100M” stands for 100 Million⚫
⚫

Decrease in sales of ETC on-board units
due to decline in automobile sales
Increase in sales of OEM contract products
Health Care Business: Steady sales ofClinical Chemistry Analyzers and reagents◆OEM, ETC, etc.: Net sales 32 100M yen (-12.6%)◆Healthcare: Net sales 10 100M yen (+5.8%)

30
20

33

36

in accounting standard
Wireless LAN Systems: Change
Sales: +0.3, Profit: +0.2 (100M yen)

32

10Net Sales 21 100M yen (+6.3% year-over-year)
Segment Profit 2.9 100M yen (-1.9 100M yen)⚫

0

FY 2020
2nd Quarter

FY 2021
2nd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 20222nd Quarter

Wireless LAN Access Point: Sales for replacement
projects in the education market recovering
8Consolidated Financial Results Forecast for FY 2022
Upward revision with gradual improvement in parts availability and recovery trend in production
Operating profit unchanged with offset between prices increase and weak yen
FY 2021
Results(Unit: Millions of yen)

FY 2022

FY 2022

Previous Forecast Revised Forecast

Net sales

84,78382,00090,000Operating profit

2,532

2,000

2,000

(3.0%)(2.4%)(2.2%)

3,717

2,500

3,000

(Sales ratio)(4.4%)(3.0%)(3.3%)

Profit attributable toowners of parent

2,814

2,000

2,500

(Sales ratio)(3.3%)(2.4%)(2.8%)(Sales ratio)

Ordinary profit

Revision of dividend with revision of financial results forecast
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202120204044.8%

FY 2022 Previous Forecast

10102031.5%

FY 2022 Revised Forecast

10152531.6%(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9

Consolidated Balance Sheet
FY 2021 FY
Old Revenue
Recognition

FY 2022 2Q
New Revenue
Recognition

Current assets

62,01071,018(Cash and deposits)(Inventories)(14,350)(27,693)(13,175)(33,797)

Fixed assets

23,96324,030(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,400)(4,276)(6,286)(13,581)(4,140)(6,307)

Total assets

85,973

95,049Current liabilities
Long-term liabilities

25,02313,06829,17713,010Total liabilities

38,092

42,188

Shareholders’ equity
OthersNon-controlling interests

48,795-914
050,530
1,989
341

Total net assets

47,88052,861

Total liabilities and net assets

85,973

95,049Equity ratio

55.7%

55.3%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

Appendix: Corporate Outline
Since commercializing the world's first Fish Finder in 1948, FURUNO has supplied many
types of products for the marine electronics market. By using its exclusive knowledge ofultrasonic and electronics technologies, FURUNO has developed a wide array of products thathave been world firsts and Japan firsts.
As of February 28, 2022

Nishinomiya Headquarter

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

Company NameFURUNO ELECTRIC CO., LTD.

Headquarters

Nishinomiya City, Hyogo, Japan

Incorporated

May 23, 1951

Business

Manufacturing and sale of maritime
and industrial electronic products

Paid-in Capital¥7,534 million

Number of Employees 3,065 (consolidated)
Consolidated Sales¥84,783 million

President

Yukio Furuno

Investor Relations: http://www.furuno.co.jp/en/ir/
Products Site: http://www.furuno.com/en/
Corporate Movie: http://www.furuno.com/special/en/corporatemovie/
12Appendix: FURUNO’s Business Fields

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

GPS/GNSS
Displacement Continuous
Remote Monitoring
SystemMeteorologicalMonitoring andAnalyzing
SystemWireless LAN
Access Point

Radar
Voyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi Beam
Sonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasoundBone
Densitometer

ClinicalChemistry
Analyzer

ETC

13

Appendix: FURUNO’s Marine Business
For Merchant Vessels

ECDIS(Electronic Chart Displayand Information System)

Radar

Satellite Communications
EquipmentFor Fishing VesselsSonar

Fish Finder

Radar

Multi-Function Display

Current IndicatorRadiotelephone

For Pleasure BoatsFURUNO ELECTRIC CO., LTD. All Rights Reserved.

GPS/WAAS
Chart PlotterAutopilot
14Appendix: FURUNO’s Industrial Business
OEM, ETC, etc.

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

GPS / GNSS
Chips & Modules

Healthcare

Clinical Chemistry Analyzer & Reagent

Ultrasound Bone Densitometer

Wireless LAN Systems

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

Wireless Handheld Terminal**Japanese market only15