Fiscal Year 2022 (Ended February 28, 2023)

Financial Results Briefing Materials
April 14, 2023

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.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of Fiscal Year 2022◆ Net Sales: Increase➢ Increase in overseas sales for Marine Business helped by a weak yen,despite sales opportunities loss with production delays◆ Gross Profit: Increase➢ Increase in gross profit with increase in sales forMarine Business, despite soaring components prices◆ Operating Profit: Decrease➢ Decrease in profit due to increase in SG&A expenses

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement
Decrease in Profit with increase in SG&A expenses despite increase in overseas sales(Unit: Millions of yen)

Fiscal Year 2021

Fiscal Year 2022

Year-over-Year(amount)

Year-over-Year(ratio)

Impact Amount*

84,78391,325+6,541

+7.7%

+626

31,63834,377(37.3%)(37.6%)+2,739

+8.7%

-330

29,10532,853(34.3%)(36.0%)+3,747+12.9%-2,532

1,523(3.0%)(1.7%)-1,008-39.8%+295-1,124-30.2%Net sales
Gross profit(Sales ratio)

SG&A expenses(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)

Profit attributable to ownersof parent(Sales ratio)

R&D expenses(Sales ratio)

3,717

2,593

(4.4%)(2.8%)

2,814

1,348(3.3%)(1.5%)

5,458

5,694(6.4%)(6.2%)-1,466-52.1%

+235

+4.3%

-2,462-52.7%-100-3.2%

4,670

2,207(5.5%)(2.4%)

3,161

3,061

(3.7%)(3.4%)

1 USD

109

129

+20+18.7%

1 EUR

130

138

+8+6.0%Capital investment(Sales ratio)

Depreciation expenses(Sales ratio)*Change inaccounting standard(Unit: Yen, annual average exchange rate)

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
940(Unit: 100 Millions of Yen)

Industrial
Business+7.2920

900Europe+18.6880

Japan-2.0860

OtherRegions-3.2Americas+7.7

Other Business+0.3

WirelessLAN Systems
+6.0

Asia
+8.8
Consolidated
Subsidiaries

+22.0
840

848
820

800

913

Marine Business
+51.9
Sales

FY 2021FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+65.4

FY 20224

Analysis of Increase/Decrease in Gross Profit on Sales
Increase in components prices but increase in overseas sales, etc. in Marine Business
370

Industrial
Business
Sales Increase+2.5(Unit: 100 Millions of Yen)

350

Components
Prices Increase, etc.

330

-39.0

310

290

Overseas Sales
Increase, etc.
+41.0

316

270

Consolidated
Subsidiaries
+9.5

Price
Pass-through+10.0

Others-0.0

Wireless LAN Systems
Sales Increase
+2.0

344

Marine Business
+21.6

250

Gross Profit on Sales
FY 2021FURUNO ELECTRIC CO., LTD. All Rights Reserved.

+27.4

FY 20225

Factors Increasing SG&A Expenses (YoY)
Increase mainly due to investments for future growth(Unit: 100 Millions of Yen)

Addition of Consolidated overseas subsidiaries with R&D function+11.3

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

+5.8

Increase in promotion expenses (exhibitions in new fields, etc.)+4.8

Increase in strategic investments in new businesses, etc.

-0.5Foreign exchange impact on SG&A expenses+12.9

Increase in business-related expenses+2.6

Others+0.7

Investments for future growth
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Increase in consolidated
SG&A expenses

+37.5
6

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

日本 ■Americas米州
欧州
その他■Japan■Europeアジア■Asia ■Other53700

Change in accounting standard
Marine Business:
Sales: +4.5, Profit: +3.7 (100M yen)
Net Sales 757 100M yen (+7.4% year-over-year)

Segment Profit 12.5 100M yen (-15.2 100M yen)
⚫

42600

28500

165

400

172

168

182

209

230

91

99

300
200

“100M” stands for 100 Million

81

⚫
⚫

Sales opportunities loss with production delays due todifficulties in obtaining parts and materials
Increase in overseas sales with weak yen
Decrease in profit due to increase in SG&A expenses
for future growth (service, R&D, etc.)◆Japan: Net sales 193 100M yen (-1.0%)➢ Decrease in sales for Fishery market➢ Steady sales for Merchant boats◆Americas: Net sales 99 100M yen (+8.4%)➢ Expansion of sales for pleasure boats◆Europe: Net sales 230 100M yen (+10.2%)
100

184

195

193

FY 2020

FY 2021

FY 20220

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

➢ Expansion of service sales, strong sales forMerchant and Pleasure boats◆Asia: Net sales 182 100M yen (+7.9%)➢ Increase in sales for Fishery market➢ Merchant newbuild projects recovered7

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

210

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

Change in accounting standard
Industrial Business:
Sales: +1.4, Profit: -1.0 (100M yen)
Net Sales 111 100M yen (+6.9% year-over-year)

Segment Profit 1.3 100M yen (+1.5 100M yen)
⚫

180

⚫
150

82
3612090422318231621256030⚫

Decrease in sales of ETC on-board units
and GNSS products
Healthcare Business: Increase in sales ofClinical Chemistry Analyzers
Return to profitability with decrease in R&D
expenses and increase in sales in Healthcare Business◆OEM, ETC, etc.: Net sales 62 100M yen (-8.9%)◆Healthcare: Net sales 25 100M yen (+20.3%)
in accounting standard
Wireless LAN Systems: Change
Sales: +0.4, Profit: +0.3 (100M yen)

70

68

62

Net Sales 42 100M yen (+17.0% year-over-year)
Segment Profit 5.1 100M yen (+0.7 100M yen)⚫

0FY 2020

FY 2021FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2022

Wireless LAN Access Point: Strong sales forreplacement projects in the education market8Appendix: Consolidated Balance Sheet
Fiscal Year 2021

Fiscal Year 2022

Current assets

62,01082,280(Cash and deposits)(Inventories)(14,350)(27,693)(15,376)(40,694)

Fixed assets

23,96324,116(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(13,400)(4,276)(6,286)(13,914)(4,034)(6,167)

Total assets

85,973

106,396

Current liabilities
Long-term liabilities

25,02313,06837,525
16,368

Total liabilities

38,09253,893

Shareholders’ equity
OthersNon-controlling interests

48,795-914050,023
2,089
389

Total net assets

47,88052,503

Total liabilities and net assets

85,973

106,396

Equity ratio

55.7%

49.0%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: Consolidated Cash Flow Statement(Unit: Millions of yen)

Cash Flowfrom Operating Activities
Cash Flowfrom Investing Activities

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

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Fiscal Year 2021

Fiscal Year 2022 YoY (amount)

6,193-6,492-12,685-4,289-3,027+1,362

1,803-9,519-11,322-3,518

8,263+11,781

13,864

14,683+818

10Forecast for Fiscal Year 2023
&Medium to Long-term Business Development

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11

Corporate Vision

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

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

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

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

FY 2020-2022

FY 2023-2025

FY 2026-2030

Phase 1

Phase 2Phase 3

Advance

Connect

Transform

Targets for Fiscal Year 2025
ROE (based on ordinary income)Payout Ratio

10% or higher

30% or higher

Main Measures(1) Improvement in profitability(2) Expansion of sales(3) Implementation of sustainable management
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13Main Measures for Phase 2 “Connect”(1) Improvement in profitability
Complete the measures of the Phase 1 for the Mid-Term Management Plan, focusing on
improving profitability by increasing the quality level, optimizing inventories, and optimizing
the product development function and the comprehensive manufacturing function.

(2) Expansion of sales
Provide high-quality services through remote management, promote DX for Marine field
focusing on digitalization, and invest resources in businesses with growth potential in order tofurther generate resources for investment in growth.

(3) Implementation of sustainable management
Aim to realize a sustainable management by expressing a long-term policy that will guide ourfuture business, strengthening business creation through strategic investments, promptly
commercializing new and expanding businesses, investing in human resources, and promoting
diversity.
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14

Review of Phase 1 “Advance”(1) Stronger inventory control andappropriate inventory levels(2) Further Increase in Quality Level

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

Based on the “Quality Before Everything” mentality,
aim to reduce the cost of quality loss by reviewing andsteadily implementing back-to-basics quality processes ineach business, fostering quality management humanresources by upgrading the quality education system, andfostering the corporate culture.

Results: Due to optimization of production volume andstrengthening of inventory control, expenses due toinventory disposal and write-downs decreased by 610
million yen compared to before the start of Phase 1.
However, inventories increased significantly due to a
sharp increase in production delays caused by difficulties
in obtaining parts and materials.

Results: Quality loss costs decreased by 430 million
yen from the pre-Phase 1 level through the promotion ofcross-divisional quality improvement activities, etc.
Furthermore, customer satisfaction improved due to adecrease in the number of complaints. Furthermore,customer satisfaction improved due to a decrease in thenumber of complaints.

Next: Work on the early optimization of inventories aswell as the continuation of thorough management tocontrol related costs incurred.

Next: Committing to further reducing quality loss costs
and improving quality, including cyber security.

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15

Review of Phase 1 “Advance”(3) Optimization of ProductDevelopment Functions(4) Optimization of Comprehensive
Manufacturing Functions

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

Further evolve FPS* activities, which have been
continuously implemented since 2012, to optimize theglobal production system, automate production processes,
expand configurated production, etc., and thoroughly
eliminate waste and promote 1/2 manufacturing.
*FPS: Furuno Production System: Building a production system suitable for our characteristic“3 Multiples” (Multiple models, Multiple types, Multiple man-hours)

Results: In addition to cost reduction activities throughcost reduction design of existing products, a cumulative
cost reduction of 400 million yen was achieved during
Phase 1 by streamlining development work, including
the use of common design in the development of newproducts.

Results: Optimization of production and purchased partsand materials at domestic and overseas factories,
promotion of automation of production processes, etc.,
and implementation of the establishment of an optimal
production and shipping system. However, a situationthat causes production delays and inconvenience tocustomers due to difficulties in obtaining parts.

Next: Horizontally deploy know-how in new productdevelopment and cost reduction design, and continuously
generate profit without lowering the quality level.

Next: Work to restore normal production as soon as
possible and build a system to make better factory
shorten lead times for procurement and production.

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16

Review of Phase 1 “Advance”(5) New Strategic Investment Quota
Investment for future growth in Phase 2 and beyond,including fostering new businesses, R&D including
advanced technology areas, business expansion into
peripheral areas of existing businesses, and infrastructuredevelopment.

Results: Creation and nurturing of new businesses,
efforts to expand the domain of existing businesses, etc.
Accelerate efforts to launch and commercialize
aquaculture support business and construction techbusiness. Aggressive investment in M&A to strengthen
overseas development capabilities and construction of a
new R&D building, etc.
Next: Continue to invest in efforts to create newbusinesses, promote R&D activities, and invest for
future growth.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

New R&D Workspace

Aquaculture Support Business

Offshore Wind Power Generation Business17

Forecast for Fiscal Year 2023
Continuous impact of components prices increase,
but aiming to expand sales in Japan and overseas
Fiscal Year 2022

Fiscal Year 2023

Year-over-Year(amount)

Year-over-Year(ratio)91,325

97,000+5,674

+6.2%

1,523

2,000(1.7%)(2.1%)+476+31.2%

2,593

2,500(2.8%)(2.6%)

-93

-3.6%

1,348

2,000+651+48.4%(1.5%)(2.1%)

5,694

5,500

(6.2%)(5.7%)

-194

-3.4%

2,207

2,500

(2.4%)(2.6%)+292+13.3%

3,061

3,100(3.4%)(3.2%)

+38

+1.3%

1 USD

129

125-4

-3.3%

1 EUR

138

130

-8

-5.7%

(Unit: Millions of yen)

Net sales
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)(Unit: Yen, annual average exchange rate)

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18

Dividend of Retained Earnings: Forecast for FY 2023
Dividend Forecast based on 30% Payout Ratio policy
2nd QuarterEnd of Term

Full Year

Payout Ratio

FY 202120204044.8%

FY 202210152558.5%

FY 2023 Forecast

101020

31.6%(Unit: Yen)

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19

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

900

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

800
700
600

4216853182

209

230

190

250

10091

Segment Profit 15.0 100M

◆Japan: Net sales 210 100M yen➢ Promotion of sales expansion forFishery and Merchant newbuild◆Americas: Net sales 100 100M yen➢ Steady demand for Pleasure boats◆Europe: Net sales 250 100M yen

300
200

Marine Business:
Net Sales 805 100M yen

55

500
400

“100M” stands for 100 Million

99100

195

193

210

FY 2021

FY 2022

FY 2023➢ High demand for Service and Merchant Retrofit◆Asia: Net sales 190 100M yen➢ Steady demand for Merchant newbuild

0

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20

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

180

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

160

100
80

Industrial Business:
Net Sales 120 100M yen
Segment Profit 2.0 100M yen◆OEM, ETC, etc.: Net sales 65 100M yen➢ Recovery of ETC and GNSS products

45140120“100M” stands for 100 Million

3642◆Healthcare: Net sales 25 100M yen➢ Steady demand for Clinical Chemistry Analyzers1823212530◆Other Industrial: Net sales 30 100M yen➢ Increase in government projects

2560

Wireless LAN Systems:

40

Net Sales 45 100M yen
Segment Profit 3.0 100M yen

68

6265

⚫

200

FY 2021

FY 2022FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Wireless LAN Access Point: Steady demand for
replacement projects in the education market

FY 2023

21

Topics

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22

Topics
Certified for 5 consecutive years and a “Health andProductivity Management Organization (White 500)”
The "Excellent Corporation for Health Management System" is a system to recognize large corporations, smalland medium-sized companies, and other corporations that practice particularly excellent health management basedon initiatives that address local health issues and promote health as promoted by the Japan Health Council. Amongthe corporations certified as "Excellent Corporations for Health Management (Large Corporation Category), only
the top 500 corporations in the results of the health management survey are recognized as "White 500".
Based on our management philosophy, we have been promoting efforts to raise employees' health awareness andcreate a workplace environment where they can continue to work with peace of mind, so that each one of ouremployees can work with a cheerful and active mind and body. In recognition of these health management efforts,
FURUNO has been recognized as a “Health and Productivity Management Organization (White 500)” forfive consecutive years since fiscal 2019 in the large corporation category.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

23

Appendix: FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

24Appendix: Corporate Outline
Since commercializing the world's first Fish Finder in 1948, FURUNO has supplied manytypes of products for the marine electronics market. By using its exclusive knowledge ofultrasonic and electronics technologies, FURUNO has developed a wide array of products thathave been world firsts and Japan firsts.
As of February 28, 2023

Nishinomiya Headquarter

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 maritimeand industrial electronic products

Paid-in Capital¥7,534 million

Number of Employees

3,310 (consolidated)

Consolidated Sales¥91,325 million

President

Yukio Furuno

Stock Exchange
Listing

Tokyo Stock Exchange,
Prime Section

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

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

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

RadarVoyage Data
Recorder(VDR)
GPS PlotterFishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasound
BoneDensitometer

ClinicalChemistry
Analyzer

ETC

26

Appendix: FURUNO’s Marine Business
For Merchant Vessels

ECDIS(Electronic Chart Displayand Information System)

Radar

Satellite Communications
Equipment

For Fishing Vessels

Sonar

Fish Finder

Radar

Multi-Function Display

Current IndicatorRadiotelephone

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

GPS/WAAS
Chart Plotter

Autopilot
27

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 only28