1st Quarter of Fiscal Year 2024 (Ending February 28, 2025)

Financial Results Briefing Materials
July 16, 2024

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.
*** “1Q” in this material represents the three-month period beginning on March 1 and ending on May 31.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Summary of 1st Quarter of FY 2024
◆Net Sales: Increase➢ Increase in sales for Marine Business, Industrial Business andWireless LAN Systems➢ Increase in sales in Japan, Europe and Asia for Marine Businessunder the continued strong demand circumstance➢ Impact of foreign exchange contributes to sales increase◆Operating Profit: Increase➢ Increase in profit due to sales increase, despite increase incomponents price and personnel expenses◆Financial Results Forecast: Upward Revision➢ Exchange rates higher than expected
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

* Foreign Exchange Sensitivity (actual results for FY 2023)[USD] Net sales: 120M yen, Operating income: 40M yen[EUR] Net sales: 180M yen, Operation income: 60M yen

2Consolidated Income Statement
Increase in Sales and Profits. Especially, significant increase in Operating and Ordinary Profits(Unit: Millions of yen)

FY 2023
1 Quarter

FY 2024
1 QuarterYear-over-Year(amount)

Year-over-Year(ratio)23,852

28,196+4,343+18.2%

9,970

11,998(41.8%)(42.6%)+2,027+20.3%+854+10.0%+1,173+80.7%+1,354+76.0%+138+12.2%+26+1.9%

+361

55.0%

+134

18.8%

stNet Sales
Gross Profit(Sales ratio)

SG&A Expenses(Sales ratio)

Operating Profit(Sales ratio)

Ordinary Profit(Sales ratio)

Profit Attributable to
Owners of Parent(Sales ratio)

R&D Expenses(Sales ratio)

st8,5159,369(35.7%)(33.2%)

1,455

2,629

(6.1%)(9.3%)

1,781

3,136

(7.5%)(11.1%)

1,141

1,280

(4.8%)(4.5%)

1,400

1,426(5.9%)(5.1%)

656

1,018(Sales ratio)(2.8%)(3.6%)

Depreciation Expenses

717

851

(Sales ratio)(3.0%)(3.0%)

1 USD

135

147

+12+9.1%

1 EUR

143

161

+18+12.3%

Capital Investment(Unit: Yen, annual average exchange rate)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales
320

Increase in Sales in Japan, Europe and Asia for Marine business, mainly in merchant vessels
Increase in sales for Industrial Business in Defense Equipment(Unit: 100 Millions of Yen)

Marine Business +38.3

310
300

Equipment/Spare Parts +23.9290
280
270Europe+5.7JapanAsia+6.7+1.6282+12.2260250
240
230

Maintenance
Services

Wireless
LAN
Foreign Industrial
Systems
Exchange Business+0.4+4.7
Impact+13.0239

Americas-0.4

OtherRegions-0.4

220

FY 2023
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Net Sales+43.4

FY 2024
1st Quarter

4

Analysis of Increase/Decrease in Gross Profit
Increase in Profit due to Sales increase, despite increase in components price and decreasein operation rate due to easing of increased production(Unit: 100 Millions of Yen)
180

150

Foreign
Exchange
Impact+8.1

Sales Increase+16.4

Industrial
Business+2.2

WirelessLANSystems+0.412012090100Components
Price Increase

Operation
Rate Decrease-5.3-1.360

Marine Business+17.930

0

FY 2023
1st Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit+20.3

FY 2024
1st Quarter

5Analysis of Increase/Decrease in Operating Profit
Increase in Profit due to Gross Profit increase,
despite increase in personnel expenses with salary revision60(Unit: 100 Millions of Yen)

50

MarineBusiness
Gross Profit
Increase+17.8

40

IndustrialBusiness
Gross Profit
Decrease+2.2

WirelessLANSystems
Gross Profit
Decrease+0.430

PersonnelExpensesIncrease

20-3.81015

Other
SG&AExpenses
Increase-1.2

Foreign
ExchangeImpacton SG&A26-3.60

FY 2023
1st Quarter
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Operating Profit+11.7

FY 2024
1st Quarter
6Overview of Marine Business
Marine Business Consolidated Sales(by Region)(Unit: 100 Millions of Yen)

250

■Japan ■Americas ■Europe ■Asia ■Other

15200151215066

5736545027245437490

FY 2022
1st Quarter

FY 2023
1st Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Segment Profit 27.4 100M yen (+8.7 100M yen)⚫
⚫
⚫

Continued strong demand mainly in merchant vessels
Increase in maintenance service sales mainly in Europe
Decrease in sales of small and medium-sized Pleasureboats, but continued strong demand in big-sized boats➢ Increase in sales for Merchant newbuild projects➢ Sales recovering for Fishery market◆Americas: Net sales 27 100M yen (+11.3%)

71

20

Marine Business
Net Sales 242 100M yen (+18.8% year-over-year)◆Japan: Net sales 49 100M yen (+32.4%)85

100“100M” stands for 100 Million

FY 2024
1st Quarter➢ Decrease in sales for Pleasure boats➢ Increase in total sales due to impact of exchange rate

◆Europe: Net sales 85 100M yen (+19.8%)➢ Increase in sales for Merchant equipment
replacement and Pleasure boats➢ Increase in sales for maintenance services◆Asia: Net sales 66 100M yen (+16.2%)➢ Increase in sales for Merchant newbuild projects➢ Increase in sales for Workboats in Southeast Asia

7

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

50

■ITS・GNSS■Healthcare■Defense Equipment ■Wireless LAN Systems“100M” stands for 100 Million

Industrial BusinessNet Sales 32 100M yen (+17.1% year-over-year)
Segment Profit 0.6 100M yen (+2.0 100M yen)⚫

◆ITS・GNSS: Net sales 14 100M yen (-12.3%)

40➢ Increase in sales for GNSS products and recoveringof sales for OEM product➢ Significant decrease in sales for ETC on-board units

730

20

10

Increase in sales for Defense Equipment

865713➢ Increase in sales for clinical chemistry analyzers◆Defense Equipment: Net sales 13 100M yen (+77.7%)

55171614FY 2022
1st Quarter

FY 2023
1st Quarter

FY 2024
1st Quarter➢ Increase in projects with increase in national defense
budget60

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

◆Healthcare: Net sales 6 100M yen (+15.8%)

Wireless LAN Systems
Net Sales 7 100M yen (+5.5% year-over-year)
Segment Profit -1.1 100M yen (+0.9 100M yen)⚫

Same level of sales for wireless LAN access point in
the education market
8Forecast for FY 2024: Upward Revision
Upward revision for Marine Business due to revision of assumed exchange rates
FY 2023

FY 2024

FY 2024

Results

Previous Forecast

Revised Forecast

114,850
6,519

110,000
5,500

117,000
6,500(5.7%)(5.0%)(5.6%)

8,169

6,5008,000(Sales ratio)(7.1%)(5.9%)(6.8%)

Profit Attributableto Owners of Parent

6,238

3,5004,000(Sales ratio)(5.4%)(3.2%)(3.4%)

140152135145153
164(Unit: Millions of yen)

Net Sales

Operating Profit(Sales ratio)

Ordinary Profit

1 USD
1 EUR

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

Full Year

Payout Ratio

FY 202320406030.4%

FY 2024 Previous Forecast

10253531.6%

FY 2024 Revised Forecast

15254031.6%(Unit: Millions of yen)FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9Appendix: Consolidated Balance Sheet
Full Year FY 2023

1st Quarter FY 2024

Current assets

86,28585,688(Cash and deposits)(Inventories)(11,786)(46,088)(9,021)(48,761)

Fixed assets

28,08527,988(Tangible fixed assets)(Intangible fixed assets)(Investments and other assets)(14,751)(4,902)(8,432)(14,797)(5,190)(8,001)

Total assets

114,370

113,676

Current liabilities
Long-term liabilities

39,385
13,55036,03814,748

Total liabilities

52,93550,757

Shareholders’ equity
OthersNon-controlling interests

55,184
5,856
393

55,201
7,337
379

Total net assets

61,43462,919Total liabilities and net assets

114,370

113,676

Equity ratio

53.4%

55.0%

(Unit: Millions of yen)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10Topics

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

11

Topics
Received two stars in the “Eruboshi” Certification
FURUNO has been certified the second level (two stars) in the “Eruboshi” Certification, a systemestablished by the Ministry of Health, Labor and Welfare, to recognize companies that are actively engaged
in promoting women’s participation and advancement.
“Eruboshi” Certification is a system where employers, who have formulated and submitted a general employer action plan basedon the Act on Promotion of Women’s Participation and Advancement in the Workplace, can apply to the prefectural labor bureau
for certification by the Minister of Health, Labor and Welfare if they meet certain criteria, such as having an excellent track recordin promoting women’s participation and advancement. Out of the five evaluation items in the “Eruboshi” Certification, FURUNO
has met the certification standards in four items: Continuous Employment, Work Style such as Working Hours, Management
Position Ratio, and Diverse Career Paths. We view this certification as a certain evaluation of our company’s efforts to promotewomen’s active participation so far.
In 2015, FURUNO met the standards set by the Next Generation Nurturing Support Promotion
Act and achieved its goals, which led to its certification as a Childcare Support Company
by the Ministry of Health, Labor and Welfare, and FURUNO obtained the “Kurumin” mark.
Furthermore, in May 2024, FURUNO established a new Diversity & Inclusion (D&I)

Promotion Division, aiming to create an ‘environment and culture where all employees canexcel, regardless of gender, nationality, age, etc.’, and FURUNO is further advancing variousmeasures. FURUNO will continue to strive for further environmental improvements torealize a better workplace and fair growth opportunities for each and every employee.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

12Topics“Sea to the Future” Project

FURUNO communicates attractive activities and problem of sea with children as a company which has been growing in marine market for a long time.

Original illustration panel exhibition
and workshop
At MUJI Hankyu Nishinomiya Gardens, from July 1, 2024,
for a month, FURUNO is exhibiting original illustration
panels drawn by its official ambassador Kawa-chan, Fish
Aficionado which depict the nature-filled streets ofNishinomiya and the rich sea. Furthermore, during thisperiod, FURUNO is holding a Fish Talk Show & Workshop
by Kawa-chan, where children’s colorful fish drawings arefreely swimming in the illustrations.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Environmental learning event held atelementary school
Together with Kawa-chan, FURUNO conducted a fun
fish quiz show for about 400 students at Nishinomiya
Municipal Kawaki Elementary School, where theylearned about the charm of the sea and environmental
issues. The children who learned about the sea had theopportunity to think about the current and future marine
environment by touching the world of the sea, such as
familiar fish living in Nishinomiya. FURUNO willcontinue to hold environmental learning events with thetheme of ‘sea’ at elementary schools in Nishinomiya

Delivering fresh and delicious fish toChildren’s cafeteria
Community-based Children’s Cafeterias, where localresidents and municipalities provide meals to children for
free or at a low cost, are said to face challenges inprocuring food, especially seafood. In this context,
FURUNO, which has bases in fishing ports nationwide andhas deep connections with the fishing industry, isconducting support activities for Children’s Cafeterias. Not
only providing food, but also talking about fishing ports andfish farms to get children interested in the fisheries industry,13
we are working to make children like fish moreTopics
100-year Corporate Vision: Ocean Gift for All
FURUNO will celebrate its 100th anniversary in 2048. As a long-term policy,
FURUNO has set a 100-year Corporate Vision: Ocean Gift for All and has
identified important themes that it can contribute to in the future society ‘Ocean
5.0’ as of 2050. This serves as a guide for FURUNO to continue evolving andremain a company that contributes to society. What FURUNO aims for is ‘to createa future where all living things receive the blessings of the sea and give back to thesea.’ From now on, FURUNO will explore various possibilities, including cocreation with other companies, and deploy initiatives towards the realization of its
Vision.

※経済価値、社会価値は「生物多様性」と共通です

最新情報は、Webサイトをご覧ください。
※経済価値、社会価値は「海の資源」と共通です

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

14

Topics
FURUNO has received approval from LiMA
to use HermAce as a tool for remote VDR APT
HermAce, which was developed by FURUNO, uses a Digital Twin (a virtual replica) of bridge equipment based on data streamed
directly from the vessel that offers live identification and diagnosis of problems.
Each year, a Voyage Data Recorder (VDR) requires an Annual Performance Test (APT) by a qualified engineer, who must visit
the vessel to check the operation and record of voyage information. However, for vessels equipped with HermAce, VDR data canbe extracted remotely. Herewith, cost saving is expected to be achieved by reducing the time for prearrangement and that engineers
have to spend for ship visits.

FURUNO has received approval from the Liberia Maritime Authority (LiMA) to use its remote monitoring and troubleshooting
platform HermAce as an alternative for the onboard APT of the VDR. HermAce previously obtained certifications for MarshallIslands and Panama-flagged vessels under ClassNK. Now, the APT of the VDR can be conducted remotely for Liberia-flaggedvessels.
Also, by using HermAce, it is possible to obtain in real-time all the detailed information remotely. Potential failures can bedetected and notified immediately, pursuing the idea of preventive and proactive maintenance for the safety and peace of mind ofthe navigation.
For more details about HermAce:
https://www.furuno.com/en/merchant/hermace/
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

15

Topics
New application for AI fish weight estimation system
FURUNO has developed a new application Aqua Scope, which integrates and displays necessary data tosupport fish farming operations.
AI fish weight estimation system can grasp the growthof fish by data from AI fish weight estimation camera“UC-300/600” inside a cage. Until now, fish farming
has been done mainly based on experience and feeling.
However, utilizing data is required to do fish farming
efficiently due to rise in the price of fish meal, etc. now.
Customers who use AI fish weight estimation system
can use “Aqua Scope” for free and watch fish weight/length, etc. from the application by user friendly andsimple operation.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16

Topics
Certified for 6 consecutive years as a
Health and Productivity Management Organization (White 500)
The Excellent Corporation for Health Management System is a system to recognize large corporations, small andmedium-sized companies, and other corporations that practice particularly excellent health management based on
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 and create aworkplace environment where they can continue to work withpeace of mind, so that each one of our employees can workwith 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) for six consecutive years since the fiscal year
2019 in the large corporation category.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

17

FURUNO’s Business Outline

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

18

Appendix: Corporate Outline
Since commercializing the world's first Fish Finder in 1948, FURUNO has supplied many
types of products for the marine electronics market. By using its exclusive knowledge ofultrasonic and electronics technologies, FURUNO has developed a wide array of products thathave been world firsts and Japan firsts.
As of February 29, 2024

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

3,356 (consolidated)

Consolidated Sales¥114,850 million

President

Yukio FurunoStock 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/
19Appendix: FURUNO’s Business Fields

GPS/GNSS
Disciplined
Oscillator

Automatic
Identification
System (AIS)
Satellite
Communications
Equipment

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

Radar
Voyage Data
Recorder(VDR)
GPS Plotter

FishFinder/Sonar

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

GPS/GNSS
Receiver for Car
Navigation
SystemUltrasound
BoneDensitometer

ClinicalChemistry
Analyzer

ETC20

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
21

Appendix: FURUNO’s Industrial Business
ITS・GNSS

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 only22