As of and for the Year Ended February 28, 2019

Financial Results Briefing Materials
April 15, 2019

Points to Note:
This document is a translation of the Japanese original. The Japanese original is authoritative.
The information listed in these materials reflect the Company’s future prospects as determined by management, based on the information available atthe time of announcement, and include potential risks and uncertainties. It should be noted that the actual results may differ substantially from these
forecasts, due to these various elements.
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, and ratios and other values are rounded off.
* “E” in this material represents that the figure is a plan or projection for operation.
** “FY” in this material indicates the fiscal year ending February 28(29) of the succeeding year.
*** “1Q” in this material represents the three-month period beginning on March 1 and ending on May 31, “2Q” represents the six-monthperiod beginning on March 1 and ending on August 31,“3Q” represents the nine-month period beginning on March 1 and ending on
November 30, and ”4Q” represents the twelve-month period beginning on March 1 and ending on February 28(29).
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY2018 Points of the Results

 Net Sales: Increase
In Japan, North America, Europe, and the Asia, net sales grew for theMarine Business, while revenue rose on the back of a robust
Communications & GNSS Solutions.

 Profit: Increase
Improved production efficiency, changes in the product mix and otherfactors boosted the gross profit on sales rate.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Financial Results Highlights
Unit: Millions of Yen

FY 2017

FY 2018

Year-over-year（amount）

Year-over-year（ratio）

Net sales
Gross profit

79,05028,233

82,10831,612+3,058+3,379+3.9%+12.0％(35.7%)(38.5%)(+2.8)

1,992

4,771

+2,779

(2.5%)(5.8%)(+3.3)

1,857

5,112+3,225(2.3%)(6.2%)(+3.9)

1,236

4,026+2,790(1.6%)(4.9%)(+3.3)

R＆D expenses

4,470

4,707+237(Sales ratio)
capital investment
Expenses(Sales ratio)(5.7%)(5.7%)(+0.1)

3,036

2,595-441(3.8%)(3.2%)(- 0.7)

Depreciation expenses

3,225

3,093

-131

(4.1%)(3.8%)(-0.3)

112
127

111
130-2+4(Sales ratio)

Operating profit(Sales ratio)

Ordinary profit(Sales ratio)
Profit attributable toowners of parent(Sales ratio)(Sales ratio)+139.5%+175.3%＋225.5%+5.3%-14.5%-4.1%

Unit: Yen, annual average exchange rate

1USD
1EURFURUNO ELECTRIC CO., LTD. All Rights Reserved.

-1.4%+2.8%
3

Analysis of Increase/Decrease in Net Sales
83.0

Unit: Billions of YenCommunications& GNSS Solutions,
Other
Healthcare +1.5

Asia+0.8

Other-1.5

-0.2

82.0

Europe+0.4

North America

+0.6

81.0

ForeignexchangeeffectWireless 82.0LAN
Systems+0.3

Japan-0.1+1.2

80.0

Marine Business+3.2

79.0

Industrial
Business

±0.0

79.0
78.0

FY17



FY18

Revenue rose for the Marine Business in Japan, North America, Europe, and Asia.
Foreign exchange effect is positive*Exchange Rate Sensitivity (actual results as of February 28, 2019)
Communications & GNSS Solutions is healthy[USD] Net sales ¥0.12 billion, Operating income ¥0.05 billion[Euro] Net sales ¥0.14 billion, Operating income ¥0.06 billion

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4

Analysis of Increase/Decrease in Profit
Analysis of Increase/Decreasein Gross Profit on Sales

Analysis of Increase/Decreasein Operating Income
6.0

Unit: Billions of Yen

Unit: Billions of Yen

Foreignexchangeeffect32.0

Improved
production
efficiency

31.0Netsales
increase

30.0+0.9+1.1
Productmix+0.4-0.1

5.0

Foreignexchange
Othereffect

Increase
Increase in SG&A
in gross expenses

4.0+0.3

profit onsales

+0.8
3.0

29.0

31.6

+3.4
2.0

28.0

27.0

-0.5

Gross profit on sales+ ¥3.4 billion

4.8

28.2

1.0

2.0

0.0

26.0

FY17

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY18

FY17

FY185

Overview of Marine Business
Unit:
Billionsof Yen

Net sales by Marine Business/Sales by Region
JapanNorth America

Europe

Asia

Other

70.0

2.9
60.0

50.0

3.2
16.9

3.2
16.9

17.7

Marine Business:
Net sales ¥66.6 billion (+5.0% year on year)
Segment Profit ¥3.9 billion (+¥3.2 billion)⇒ Revenue rose in Japan, North America, Europe, and Asia
⇒ Substantial increase in profits due to improved production
efficiency, changes in the product mix, selling, generaland administrative expenses, a reduced depreciation
burden mainly in systems, and other factors.

Japan: Net sales ¥18.8 billion (+7.0%)
40.0

15.9

17.9

18.8

30.0

20.0

10.0

 Stable at the lower level for newly-built Merchant vessels
 Generally strong for Fishing vessels, and revenue is risingfor other businesses

North America: Net sales ¥8.3 billion (+6.0%)
7.5

17.5

7.9

17.6

8.3

 Remains strong, mainly for Fishing vessels

Europe: Net sales ¥18.8 billion (+4.9%)

18.8

 Notable continued growth in retrofitting for Merchantvessels
 Remains strong for Fishing vessels

Asia: Net sales ¥17.7 billion (+4.7%)

0.0

FY16

FY17

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY18

 Bottomed out for newly-built Merchant vessels
 Expanding in retrofitting for Merchant vessels
6Overview of Industrial Business, Wireless LAN Systems
Unit:Billionsof Yen
20.0

Net sales by Industrial Business& Wireless LAN Access Point/Sales by Products
Wireless LAN Systems
Industrial OtherHealthcare
Communications and GNSS Solutions

18.0
16.0

3.2

14.0

1.8

3.5

3.3

12.0

1.9
10.0

3.7

Net sales ¥11.8 billion (-0.3% year on year)
Segment Profit ¥0.3 billion (-¥0.3 billion)⇒ The contract business in the Communications & GNSS
Solutions remains healthy⇒ Healthcare has seen a fall in profit, as revenue has
declined considerablyCommunications & GNSS Solutions:
Net sales ¥7.7 billion (+21.7%)

2.0

 Increase in sales for the contract business andfrequency generators

2.1

Healthcare: Net sales ¥2.1 billion (-41.7%)

5.2

8.0

Industrial Business:

Wireless LAN Systems:
6.0
4.0

7.2

6.3

7.7

2.0
0.0

FY16

FY17

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY18Net sales ¥3.3 billion (-3.3% year on year)
Segment Profit ¥0.4 billion (-¥0.1 billion)⇒ Wireless LAN Access Point is performing well
⇒ Handheld Terminal is sluggish, as it’s in the trough ofrenewal demand⇒ Profit has declined with prior investment forstrengthening sales and technical capabilities
7

For the Year Ended February 29, 2020

Results Forecast and Medium-to-Long
Term Business Development

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

8

A New Management Vision

Business Vision；Achieve better safety, security and comfort to bring about a society and sea
navigation that considers the needs of people and the environment
Human Resources and Corporate Culture Vision；VALUE through GLOBALIZATION and SPEED

Growth targets for FY2030；consolidated net sales of 120billion yen, operating margin of 10％,new business composition ratio of 30％
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9Business Vision
FURUNO GLOBAL VISION “NAVI NEXT 2030”

１．Marine Business“As a general maritime company primarily dealing in marine equipment,
we will contribute to the development of maritime culture and realizing

safe and secure sea navigation for our maritime customers, through ourabundantly creative and innovative business activities.”➥In order to remain a leading company in the marine equipment field, we willcontinue to steadily generate profits in stronghold markets, while stepping upprior investment for the future.

２．PNT Business * （Positioning, Navigation and Timing)*Reviewing business fields, and changing the name from Communications & GNSS Solutions“We will support infrastructure and cities around the world using products andservices with added creative value, and with the positioning and timing ofpeople, goods, and mobility”➥We will focus beyond the segment framework and create new groups of newproducts that will be our strengths, and shift to a service-based business.
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10

Business Vision
FURUNO GLOBAL VISION “NAVI NEXT 2030”

3. Healthcare Business“We will follow what is happening in the medical field and create early diagnosis
solutions, as we work to improve the health and welfare of people.”➥We will define key areas and maintain close communication with ourcustomers, so we can provide solutions that are aligned with regional features.

4. Wireless LAN Business“Realizing a society that connects and expands through a ‘pleasant Wi-Fienvironment’”➥We will maintain our top share in the educational ICT* infrastructure sector for Japan,
while developing new products and sales channels.
*Information and Communication Technology

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11Consolidated Financial Results Forecast
Year-overyear（amount）

Year-overyear（ratio）

-0.1%
-0.4％

Unit: Millions of Yen

FY 2018

FY 2019
Forecast

Net sales
Gross profit

82,10831,61282,00031,500-108-112(Sales ratio)(38.5%)(38.4%)(-0.1)

Operating profit

4,771

4,000-771(Sales ratio)(5.8%)(4.9%)(-0.9)

5,112

4,000-1,112(6.2%)(4.9%)(-1.3)

4,026

3,000-1,026(Sales ratio)(4.9%)(3.7%)(+1.2)

R＆D expenses(Sales ratio)
capital investment
expenses(Sales ratio)
Depreciation
expenses(Sales ratio)

4,707

4,500-207(5.7%)(5.5%)(-0.2)

2,595

2,500-95(3.2%)(3.1%)(-0.1)

3,093

3,000-94(3.8%)(3.7%)(-0.1)

111
130

110
125-1-5Ordinary profit(Sales ratio)
Profit attributable toowners of parent-16.2%-21.8%-25.5%

-4.4%

-3.7%
-3.0%

Yen, annual average exchange rate

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

-0.6%
-4.1%
12

Dividend Information

Unit: Yen

2nd Quarter

Term-End

Full-Year

Payout Ratio

FY 2017461025.5%

FY 2018*Includes a commemorative

15*Includes a commemorative

10dividend

FY 2019 Forecast

1025

19.6%

dividend

102021.0%*The interim dividend for the year ended February 28, 2019 includes a ¥5 commemorative
dividend to mark the 70th anniversary of the Company’s foundation.

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13

Results Forecast by Segment
Unit:
Billionsof Yen
70.0

Net sales by Marine Business/Sales by Region

FY2019 Forecast

Marine Business:
Japan60.0

3.2

50.0

16.9

North AmericaEuropeAsiaOther2.9

3.0

17.7

18.0

Net sales ¥66 billion
Segment Profit ¥32 billion

Japan: Net sales ¥18.0 billion
 Stable at the lower level for newly-built Merchant vessels
 Strong for Fishing vessels

North America: Net sales ¥8.0 billion

40.0

17.9

18.8

19.0

 Remains strong for Fishing vessels

Europe: Net sales ¥19.0 billion

30.0

 Performing well in retrofitting for Merchant vessels
20.0

10.0

7.9

8.3

8.0

Asia: Net sales ¥18.0 billion
 Expected to recover for newly-built Merchant vessels, andto have good results for retrofitting of Merchant vessels

17.6

18.8

18.0

FY17FY18FY19E0.0FURUNO ELECTRIC CO., LTD. All Rights Reserved.

14

Results Forecast by Segment
Unit:
Billionsof Yen
18.0

Net sales by Industrial Business& Wireless LAN Access Point/Sales by Products
Wireless LAN Systems
Industrial OtherHealthcare
Communications and GNSS Solutions

FY2019 Forecast

Industrial Business:
Net sales ¥12 billion
Segment Profit ¥0.3 billion

16.0

14.0

3.5

3.3

4.0

 Focus on expanding sales in the Solutions Business and12.0

1.9

2.0

2.0

2.1

2.0

10.0

8.0

Communications & GNSS Solutions:
Net sales ¥8.0 billion

3.7

Chip Modules

Healthcare:
Net sales ¥2.0 billion
 Shift to expanding sales of small-to-medium-sized clinicalchemistry analyzer

6.0

4.0

6.3

7.7

8.0

Wireless LAN Systems:Net sales ¥4.0 billion

2.0

Segment Profit ¥0.5 billion
 Forecast of expanding sales of Wireless LAN

0.0

FY17

FY18

FY19E

Access Point and a recovery in sales of Handheld
Terminal

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15

Corporate Profile

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16

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 knowledgeof ultrasonic and electronics technologies, FURUNO has developed a wide array ofproducts that have been world firsts and Japan firsts.

As of Feb 28, 2019

Company NameFURUNO ELECTRIC CO., LTD.

Headquarters

Nishinomiya City, Hyogo, Japan

Incorporated

May 23, 1951

Business

Manufacturing and sale of maritime
and industrial electronic products

Paid-in Capital¥7,534 million

President

Yukio Furuno

Investor Relations⇒ http://www.furuno.co.jp/en/ir/
Products Site⇒ http://www.furuno.com/en/
Corporate Movie⇒ http://www.furuno.com/special/en/corporatemovie/
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17

FURUNO's Business Fields

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

GPS/GNSS
Displacement Continuous
Remote Monitoring System

Meteorological
Monitoring andAnalysing
SystemWireless
Access Points

Radar
Voyage Data
Recorder(VDR)

GPS/GNSS
Receiver for Car
Navigation System
GPS Plotter

Ultrasound Bone
Densitometer
Fish
Finder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

ClinicalChemistry
Analyzer

ETC18