3rd Quarter of FY 2/2020

Financial Results Briefing Materials
January 14, 2020

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 theinformation available at the 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 profitand-loss statement, consolidated statement of changes in shareholders’ equity, and notes to consolidated financial statements. Shownvalues of less than one unit are truncated, and ratios and other values are rounded off.
* “FY” in this material indicates the fiscal year ending February 28( 29 ) of the succeeding year.
** “3Q” in this material represents the three-month period beginning on September 1 and ending on November 30.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Financial Summary for 3rd Quarter of FY 2/2020

 Net Sales: IncreaseSales increased for newly-built merchant vessels in Japan and Asia
in the Marine Business.
Sales increased owing to strong sales of Wireless LAN Access Pointfor schools in the Wireless LAN Systems.

 Profit: Decrease
The gross profit margin decreased due to changes in the productmix, foreign exchange effects, production adjustment, and otherfactors.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

FY 2/2020 3rd Quarterly Results Highlights
Unit: Millions of Yen

FY 2/2019
3rd QuarterNet sales
Gross profit

FY 2/20203rd Quarter

Year-over-year( amount )Year-over-year( ratio )

59,72962,582+2,853+4.8%

23,66622,434-1,232-5.2%(39.6%)(35.8%)(-3.8)

3,876

2,928

-948

(6.5%)(4.7%)(-1.8)

4,186

3,062

-1,124(7.0%)(4.9%)(-2.1)

3,329

2,576-753( Sales ratio )(5.6%)(4.1%)(-1.5)

R＆D expenses( Sales ratio )Capital investment
expenses( Sales ratio )Depreciation expenses( Sales ratio )3,373

3,176-197(5.6%)(5.1%)(-0.5)

1,856

2,241+385(3.1%)(3.6%)(-0.5)

2,295

2,358+63(3.8%)(3.8%)(±0.0)

110

110ーー131

123-8-6.3%( Sales ratio )Operating income( Sales ratio )Ordinary income( Sales ratio )Profit attributable toowners of parent-24.5%-26.9%-22.6%-5.8%+20.7%+2.7%

Unit: Yen, annual average exchange rate

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

3

Analysis of Increase/Decrease in Net Sales(Unit: 100 Millions of Yen)

640

Asia

+12.2

635

Communications& GNSS Solutions,Other630
625JapanEurope+23.7＋1.0

Other

Foreign
ExchangeeffectNorth
America615-0.3

Marine Business+24.6

600595

Healthcare-2.1-8.9

610
605＋5.1＋1.0-3.0620

Wireless LANSystems,
Other

Industrial
Business

625.8

-1.2

597.3590

FY 2/2019
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2/2020
3rd Quarter*Exchange Rate Sensitivity ( actual results as of February 28, 2019 )[USD] Net sales 1.2 100M yen, Operating income 0.5 100M yen[Euro] Net sales 1.4 100M yen, Operating income 0.6 100M yen

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

Analysis of Increase/Decreasein Operating Income(Unit: 100 Millions of Yen)

(Unit: 100 Millions of Yen)250

Net Sales increase

40+11.3

245

Production
adjustment

35-2.238.8

240

Other,
Increase in
SG&A
expenses30

Foreign
Exchangeeffect＋2.7+0.7

235

Changes in theproduct mix-10.1

Inventory andproductWarranty costs

230

25

Fluctuationin gross Increase
Profit on inhumanresourcesales
related-12.3 expenses

20-0.6-2.5

Foreign
Exchangeeffect225

236.7-6.4

Gross profit on sales

220
FY 2/2019
3rd Quarter-12.3

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Other-2.6

29.3

224.3
15
FY 2/2020
3rd Quarter

FY 2/2019
3rd Quarter

FY 2/2020
3rd Quarter*Foreign exchange effects on operating income:-3.7 100M yen

5Overview of Marine Business“100M” in this material indicates 100 Million

Net sales by Marine Business/Sales by Region

Marine Business:
Net sales 505 100M yen (+5.1% year on year)(Unit: 100 Millions of Yen)
600
Japan

North America

500400Europe2422126

128

Asia

Other19140

Segment Profit 18.8 100M yen (-10.8 100M yen)
⇒ Revenue rose in Japan and Asia
⇒ Profit declined due to changes in the productmix, foreign exchange effects, production
adjustment, and other factors.

Japan: Net sales 153 100M yen (+18.3%)
 Revenue increased for newly-built merchant vessels

300

131

140

200

5960

100

135130FY 2/2018
3rd Quarter

FY 2/2019
3rd Quarter

133

North America: Net sales 60 100M yen (-0.4%)
 Same level as same period in previous year

Europe: Net sales 133 100M yen (-5.3%)60153

 Revenue decreased due to foreign exchange
effects(-8.4 100M yen)

Asia: Net sales 140 100M yen (+9.0%)
 Revenue increased for newly-built merchant vessels

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

FY 2/2020
3rd Quarter
6

Overview of Industrial Business, Wireless LAN Systems“100M” in this material indicates 100 Million

Net sales by Industrial Business& Wireless LAN systems /Sales by Products(Unit: 100 Millions of Yen)

120

100

27263080

1414

13151360

26⇒ Communications & GNSS Solutions reported aslight decrease in contract business sales, but
ETC on-board devices increased receipts⇒ Healthcare recorded slightly less revenue due tosluggish sales of FURUNO products.
⇒ Profit decreased due to changes in the productmix and increased inventory-related costs.

Communications & GNSS Solutions:

Net sales 61.4 100M yen (+2.2%)
Healthcare: Net sales 12.9 100M yen (-14.1%)
Wireless LAN Systems:

40

20

Net sales 87.5 100M yen (-1.3% year on year)

Segment Profit 3.5 100M yen (-1.3 100M yen)

Wireless LAN Systems
Other Industrial Business
Healthcare
Communications and GNSS Solutions

140

Industrial Business:

4660

61

Segment Profit 6.1 100M yen (+2.1 100M yen )0FY 2/2018
3rd Quarter

Net sales 30.1 100M yen (+16.8% year on year)

FY 2/2019
3rd Quarter

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

FY 2/2020
3rd Quarter⇒ Revenue and profit increased thanks tofavorable sales of Wireless LAN Access
Point.
7

FY 2/2020 — Revised Consolidated Results Forecast
Previous forecast

Unit: Millions of Yen

FY 2/2019
Actual results

Latest forecast(Announced April 15, 2019)(Announced January 14, 2020)

FY 2/2020
Forecast

FY 2/2020
Forecast

Change(amount)

Change(ratio)

82,10882,00082,000±0±0.0%

Operating income

4,771

4,000

2,500

-1,500-37.5%(Sales ratio)( 5.8% )( 4.9% )( 3.0% )( -1.9 )

5,112

4,000

3,000-1,000(Sales ratio)( 6.2% )( 4.9% )( 3.6% )( -1.3 )Profit attributable toowners of parent

4,026

3,000

2,500-500(Sales ratio)( 4.9% )( 3.7% )( 3.0% )( -0.7)

Net sales

Ordinary income-25.0%-16.6%

Profit is estimated to be lower than originally expected because of thedeclining gross profit margin due to changes in the product mix,production adjustment to reduce inventory, and other factors.
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

8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 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 maritimeand industrial electronic products

Paid-in Capital

7,534 million yen

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/
FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9

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

GPS/GNSS
Receiver for Car
Navigation
SystemVoyage Data
Recorder( VDR )GPS Plotter

FishFinder/SonarFURUNO ELECTRIC CO., LTD. All Rights Reserved.

Multi BeamSonar

UltrasoundBone
Densitometer
ClinicalChemistry
Analyzer

ETC10