June 10, 2024
Name of Company

Furukawa Electric Co., Ltd

Name of Representative

Hideya Moridaira, President(Code: 5801 Prime Market of the Tokyo Stock Exchange)

Contact

Hiroko Takita,
Corporate Vice President and General Manager ofInvestor Relations Dept.

(TEL +81-3-6281-8540)

Notice concerning transfer of an equity-method affiliate (projected) andrecording an extraordinary profit on the non-consolidated basis

Furukawa Electric Co., Ltd. (hereinafter the “Company”) sold a part of its shares, namely
2.6 million shares, in its equity-method affiliate, UACJ Corporation (Code:5741, Prime Marketof the Tokyo Stock Exchange) (hereinafter “UACJ”) (hereinafter “the Sale”). As a result of theSale, the percentage of voting rights held in UACJ is changed from 25.20% to 19.75%, andUACJ will no longer be the Company’s equity-method affiliate (projected).
As a result of the Sale, for the fiscal year ending March 2025, the Company expects torecord an extraordinary profit of approx. 6 billion yen on the non-consolidated basis, and anextraordinary loss of approx. 1.2 billion yen on the consolidated basis.
1． Reason for the SaleUnder the Medium-term Management Plan “Road to Vision 2030 - Transform and Challenge”
released in May 2022, the Company has been focusing on improving the efficiency ofmanagement recourses while being conscious of cost of capital, and working on increasing
the efficiency of funds and assets. As a result of examining the Company’s holding of sharesin UACJ to this end, the Company judged that the Sale is consistent with its financial strategy
and Group strategy, and executed the Sale.
2． Number of shares sold, the method of the Sale, and numbers of shares held before andafter the Sale(1) Number of shares to be sold2,600,000 shares (percentage of voting rights
held (note1) : 5.44%)(2) Method of the Sale

Sold to a securities firm(3) Number of shares held prior

12,036,500 shares (percentage of voting rights

to the Sale

held: 25.20%)(4) Number of shares held after
the Sale

9,436,500 shares (percentage of voting rights
held: 19.75%)(Note1) Percentage of voting rights held is computed and rounded up to the nearest
third decimal place based on the total number of voting rights of all shareholders,
477,727 units, which is calculated by subtracting the number of shares without voting
rights of UACJ as of March 31, 2024, 555,493 shares, from the total number ofoutstanding shares of UACJ, 48,328,193 shares, as of the same date.
3． Overview of the equity-method affiliate to be transferred
Name

UACJ Corporation

Address

1-7-2 Otemachi Chiyoda-ku, Tokyo Japan

Name and Title ofShinji Tanaka, Representative Director and President

Representative
Business Outline

Manufacture and sales of rolling products, casting products,
forgedproducts

andprecision-machined

productsofnonferrous metals, including aluminum and alloys thereof.
Capital52,277 million yen

Establishment

October 1, 2013

Major Shareholders
andName of Shareholder

Shareholding ratio

Shareholding(note 2)ratio

Furukawa Electric Co., Ltd.

24.96％(as of March 31,

GOLDMAN SACHS INTERNATIONAL

10.48％2024)

The Master Trust Bank of Japan Ltd. (Trust

10.38％

Account)
Custody Bank of Japan Ltd. (Trust Account)

5.23％

ECM MF

3.00％

MLI FOR SEGREGATED PB CLIENT

2.08％

STATE

TRUST

1.97％

Stock

1.64％

STREETBANK ANDCOMPANY 505103
TheUACJGroup

EmployeeOwnership PlanSumitomo Corporation

1.55％

Mizuho Bank, Ltd.

1.52％

Relationship

Capital

As of March 31, 2024, the Company holds

between therelationship12,036,500 shares of the said affiliate, which

Company and theaccounts for 24.96% of all outstanding shares

said affiliate(excluding treasury shares), and thus the said
affiliate is an equity-method affiliate of theCompany.
Personnel

N/A

relationship
Business

The Company supplies part of raw materials torelationshipand purchases some raw materials from thesaid affiliate, and is commissioned to deliver
some services. The Company also rents
out/leases real estates and facilities.

Operating Performance and Financial Condition in the Last Three Fiscal Years
Fiscal year

Fiscal year

Fiscal year

Fiscal year

ended March

ended March

ended March

31, 2022

31, 2023

31, 2024

Net assets (Millions of yen)

204,776

201,517

198,999

Total assets (Millions of yen)

573,812582,703575,790

Net assets per share (Yen)

4,246.48

4,179.00

4,126.96

Net sales (Millions of yen)

275,472

313,724

293,132

13,020772

1,718

15,280

3,905

3,438

Net income (Millions of yen)

11,490949

2,784

Net income per share (Yen)

238.26

19.69

57.74

85.00

85.00

Operating income (Millions ofyen)
Ordinary income (Millions ofyen)

Dividend per share (Yen)

90.00（planned）(Note 2) Shareholding percentage is expressed as the ratio of the number of shares
held by the Company to the aggregate number of all outstanding shares (excludingtreasury shares).

4． Schedule of the Sale
(1) June 10, 2024

Contract date for the sale of shares(2) June 12, 2024 (projected) Share delivery date
5． Impact on business results
Due to the Sale, it is expected that the Company will record an extraordinary profit (i.e.
gain on sales of shares of subsidiaries and associates) of approx. 6 billion yen on the nonconsolidated basis; and an extraordinary loss (i.e. loss on sales of investment securities) ofapprox. 1.2 billion yen on the consolidated basis. If there occurs any material event, of which
impact on the consolidate business results for the year ending in March 2025 should bedisclosed, the Company will promptly disclose the matter.
END