Fiscal Year 2023 (Ended February 29, 2024)

Financial Results Briefing Materials

April 15, 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 of

announcement, and 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 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 2023

  • Net Sales: Increase
    • Increase in sales in all regions for Marine business with continued increase in production to catch-up high backlog and normalize delivery dates
  • Operating Profit: Increase
    • Gross profit increased with efforts to increase sales, improve production efficiency and price management, etc.
    • Continued investment for growth to strengthen sales and service structure
      • 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

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

2

Consolidated Income Statement

Increase in sales in all regions for Marine business

Net sales and net profit have reached the highest-ever level

(Unit: 100 Millions of Yen)

Fiscal Year 2022

Fiscal Year 2023

Year-over-YearYear-over-Year

(amount)

(ratio)

Net sales

91,325

114,850

+23,525

+25.8%

Gross profit

34,377

42,594

+8,217

+23.9%

(Sales ratio)

(37.6%)

(37.1%)

SG&A expenses

32,853

36,075

+3,221

+9.8%

(Sales ratio)

(36.0%)

(31.4%)

Operating profit

1,523

6,519

+4,995

+327.8%

(Sales ratio)

(1.7%)

(5.7%)

Ordinary profit

2,593

8,169

+5,576

+215.0%

(Sales ratio)

(2.8%)

(7.1%)

Profit attributable

to owners of parent

1,348

6,238

+4,890

+362.8%

(Sales ratio)

(1.5%)

(5.4%)

R&D expenses

5,694

5,987

+293

+5.2%

(Sales ratio)

(6.2%)

(5.2%)

Capital investment

2,207

3,350

+1,143

+51.8%

(Sales ratio)

(2.4%)

(2.9%)

Depreciation expenses

3,061

3,413

+351

+11.5%

(Sales ratio)

(3.4%)

(3.0%)

(Unit: Yen, annual average exchange rate)

  1. USD
  1. EUR

129

140

+11

+8.5%

138

152

+14

+10.4%

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

3

Analysis of Increase/Decrease in Net Sales

Increase in sales in all regions for Marine business mainly in merchant vessels

Increase in sales for Industrial Business in Defense Equipment

1,300

Foreign

1,250

Other

Exchange

1,200

Impact

regions

+44.4

Asia

1,150

+15.8

+52.3

1,100

Europe

+64.4

1,050

Japan

Americas

+14.9

1,000

+32.5

950

900

913

850

800

Marine Business

750

+224.4

700

Industrial

(Unit: 100 Millions of Yen)

Business

+17.1

Wireless Other

LAN Systems Business

-6.0-0.2

1149

FY2022

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Net Sales

+235.3

FY2023

4

Analysis of Increase/Decrease in Gross Profit

Increase in gross profit with increase in sales for Marine business

and components cost increase compensated by improved profitability

480

450

Sales

Increase

420+62.6

Foreign

Price

Exchange

Impact

Improved

Management,

+27.5

etc.

Production

+11.0

Capacity

+4.0

Industrial

Business

Sales

Increase

+2.7

Wireless

(Unit: 100 Millions of Yen)

Others

390

360

Improved

profitability

+15.0

Components Cost Increase

-14.2

LAN Systems

Sales Decrease,

etc.

-5.7

-5.7

330 344

300

Marine Business+90.9

426

FY2022

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Gross Profit

+82.2

FY2023

5

Analysis of Increase/Decrease in Operating Profit

Significant Increase in profit with higher gross profit in Marine business,

despite increase in SG&A expenses with strengthening of sales and service structure

150

140

130

120

110

100

90

80

70

60

50

40

30

Marine Business

Industrial Business

Gross Profit

Increase

Gross Profit Increase

+90.9

+2.7

Wireless

LAN Systems

Gross Profit

Decrease

Expense Increase

R&D

-5.7

with Personnel

Expenses

Increase, etc.

Increase

-22.7

-2.9

(Unit: 100 Millions of Yen)

Foreign

Exchange

Impact on

SG&A

20

1015

-12.3

65

0

FY2022

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Operating Profit

+50.0

FY2023

6

Overview of Marine Business

Marine Business Consolidated Sales

Marine Business

"100M" stands for 100 Million

(by Region)

(Unit: 100 Millions of Yen)

1,000

日本

米州

欧州

アジア

その他

69

900

800

53

242

700

42

600

168

182

500

230

321

400

209

300

91

99

124

200

195

193

226

100

0

FY2021

FY2022

FY2023

Net Sales 982 100M yen (+29.6% year-over-year) Segment Profit 71.0 100M yen (+58.5 100M yen)

  • Increase in production to catch-up high backlog and normalize delivery dates
  • Price management, etc., and yen depreciation
  • Continued selection of projects based on profitability

◆Japan: Net sales 226 100M yen (+16.8%)

  • Steady sales for Merchant newbuild projects
  • Improvement in sales for Fishery market

◆Americas: Net sales 124 100M yen (+25.7%)

  • Increase in sales for Pleasure boats and Fishery market

◆Europe: Net sales 321 100M yen (+39.3%)

  • Expansion in sales for Merchant, Fishery and Pleasure boats
  • High demand for retrofit and steady increase in sales of maintenance services

◆Asia: Net sales 242 100M yen (+33.1%)

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

➢ Steady sales for Merchant newbuild projects

7

Overview of Industrial Business

Industrial Business Consolidated Sales

Industrial Business

"100M" stands for 100 Million

(by Product)

(Unit: 100 Millions of Yen)

180

■ OEM, ETC, etc.

■ Healthcare

■ Defense Equipment ■ Wireless LAN Systems

160

36

140

36

42

120

35

100

18

23

80

21

29

25

60

40

68

62

65

20

0

FY2021

FY2022

FY2023

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

Net Sales 128 100M yen (+15.4% year-over-year) Segment Profit +2.4 100M yen (+1.2 100M yen)

  • Increase in sales and profit for each sector of Industrial business

◆OEM, ETC, etc.: Net sales 65 100M yen (+6.5%)

  • Increase in sales for OEM products
  • Increase in sales for ETC and GNSS products

◆Healthcare: Net sales 29 100M yen (+12.9%)

  • Increase in sales for clinical chemistry analyzers

◆Defense Equipment: Net sales 35 100M yen (+52.2%)

  • Increase in sales and development project with increase in defense budget of Japan

Wireless LAN Systems

Net Sales 36 100M yen (-14.4% year-over-year) Segment Profit 1.3 100M yen (-3.8 100M yen)

  • Decrease in sales for wireless LAN access point in the education market

8

Appendix: Consolidated Balance Sheet

(Unit: Millions of yen)

Fiscal year 2022

Fiscal year 2023

Current assets

82,280

86,285

(Cash and deposits)

(15,376)

(11,786)

(Inventories)

(40,694)

(46,088)

Fixed assets

24,116

28,085

(Tangible fixed assets)

(13,914)

(14,751)

(Intangible fixed assets)

(4,034)

(4,902)

(Investments and other assets)

(6,167)

(8,432)

Total assets

106,396

114,370

Current liabilities

37,525

39,385

Long-term liabilities

16,368

13,550

Total liabilities

53,893

52,935

Shareholders' equity

50,023

55,184

Others

2,089

5,856

Non-controlling interests

389

393

Total net assets

52,503

61,434

Total liabilities and net assets

106,396

114,370

Equity ratio

49.0%

53.4%

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

9

Forecast for Fiscal Year 2024

Continued high demand/ Sales maintained at 110B yen

Increase in SG&A expenses with increase in personal expenses

Significant increase in corporate income tax adjustment with tax effect accounting (first half, 1.5-

2.0B yen)

Year-over-Year

Year-over-

(Unit: Millions of yen)

Fiscal Year 2023

Fiscal Year 2024

Year

(amount)

(ratio)

Net sales

114,850

110,000

-4,850

-4.2%

Operating profit

6,519

5,500

-1,019

-15.6%

(Sales ratio)

(5.7%)

(5.0%)

Ordinary profit

8,169

6,500

-1,669

-20.4%

(Sales ratio)

(7.1%)

(5.9%)

Profit attributable to

-43.9%

owners of parent

6,238

3,500

-2,738

(Sales ratio)

(5.4%)

(3.2%)

R&D expenses

5,987

6,600

+612

+10.2%

(Sales ratio)

(5.2%)

(6.0%)

Capital investment

3,350

4,500

+1,150

+34.3%

(Sales ratio)

(2.9%)

(4.1%)

Depreciation

3,413

3,500

+87

+2.5%

expenses

(Sales ratio)

(3.0%)

(3.2%)

(Unit: Yen, annual average exchange rate)

  1. USD
  1. EUR

140

135

-5

-3.8%

152

145

-7

-4.8%

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

10

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Furuno Electric Co. Ltd. published this content on 15 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 08:48:01 UTC.