FURUNO ELECTRIC CO., LTD. All Rights Reserved.

July 11, 2019

1st Quarter of FY 2/2020

Financial Results Briefing Materials

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 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 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. * “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.

FY 2/2020 1st Quarterly Points of the Results

2

Net Sales: Increase In Japan and the Asia, net sales grew for the Marine Business. Net sales for the Industrial Business and Wireless LAN Systems declined.

Profit: Decrease Operating income declined due to increased COGS, and increased selling, general, and administrative expenses.

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

R＆D expenses 1,125 1,230 +105 +9.3% ( Sales ratio ) ( 5.5% ) ( 6.0% ) ( +0.5 )

Capital investment expenses 702 468 -234 -33.3%

( Sales ratio ) ( 3.5% ) ( 2.3% ) ( -0.8 ) Depreciation expenses 715 779 +64 +9.0%

( Sales ratio ) ( 3.5% ) ( 3.8% ) ( +0.3 ) Unit: Yen, annual average exchange rate 1USD 110 111 +1 +0.7% 1EUR 133 126 -7 -5.4%

FY 2/2020 1st Quarterly Results Highlights

Unit: Millions of Yen FY 2/2019 1st Quarter

FY 2/2020 1st Quarter

Year-over-year ( amount )

Year-over-year ( ratio )

Net sales 20,313 20,652 +339 +1.7% Gross profit 8,774 7,611 -1,163 -13.3%

( Sales ratio ) ( 43.2% ) ( 36.9% ) ( -6.3 ) Operating income 2,183 779 -1,404 -64.3%

( Sales ratio ) ( 10.8% ) ( 3.8% ) ( -7.0 )

Ordinary income 2,202 874 -1,328 -60.3% ( Sales ratio ) ( 10.8% ) ( 4.2% ) ( -6.6 )

Profit attributable to owners of parent 1,869 897 -972 -52.0%

( Sales ratio ) ( 9.2% ) ( 4.4% ) ( -4.8 )

3

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

203 207

Japan

+8.7 North America

-2.6 Europe

+0.4

Asia

+5.4 Other

-0.5

Foreign exchange

effect

-2.3 Communications

& GNSS Solutions, Other

-3.2 Healthcare

-0.5

Wireless LAN

Systems

-2.1

200

205

210

215

220

FY 2/20191st Quarter

FY 2/20201st Quarter

Unit: 100 Millions of Yen

4

Marine Business +9.2

Industrial Business -3.7

Analysis of Increase/Decrease in Net Sales

*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

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

87.7 7.6

Net sales

increase +1.4

Improved production efficiency +1.4

Increase in elimination

of unrealized income -6.8

Increase in human

resource-related expenses

-0.9 Changes in the

product mix

-5.1

Foreign exchange

effect -1.7

Other +0.1

70

75

80

85

90

95

FY 2/20191st Quarter

FY 2/20201st Quarter

Unit: 100 Millions of Yen

5

Gross profit on sales -11.6

売上総利益の増減分析 Analysis of Increase/ Decrease in Gross Profit on Sales

Analysis of Increase/Decrease in Profit

Analysis of Increase/Decrease in Operating Income

21.8 7.8

Increase in gross profit on sales

-11.6 Increase in

human resource-related expenses

-0.6

Other, Increase in SG&A expenses

-1.1

Foreign exchange effect -0.7

0

5

10

15

20

25

FY 2/2019

1st Quarter

FY 2/2020

1st Quarter

Unit: 100 Millions of Yen

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

47 49 57

19 19 17

41 47 45

39 41 46

9 8

7

0

50

100

150

200

FY 2/2018 1st Quarter

FY 2/2019 1st Quarter

FY 2/2020 1st Quarter

Japan North America Europe Asia Other

Japan: Net sales 57 100M yen ( +17.8% ) Revenue substantially increased for newly built

Merchant vessels and Fishing vessels. North America: Net sales 17 100M yen ( -12.0% ) Revenue from small-sized products declined.

Europe: Net sales 45 100M yen ( -4.4% ) Revenue slightly decreased due to foreign exchange

effects, but remained strong for retrofitting of Merchant vessels.

Asia: Net sales 46 100M yen ( +13.1% ) Revenue increased for both newly built Merchant

vessels and for retrofitting.

Overview of Marine Business

Marine Business: Net sales 171 100M yen ( +5.6% year on year )

Segment Profit 6.2 100M yen ( -11.5 100M yen ) ⇒ Revenue rose in Japan and Asia ⇒ Profit declined due to changes in the product mix,

increased elimination of unrealized income, foreign exchange effects, and other factors.

6

Net sales by Marine Business /Sales by Region

Unit: 100 Millions of Yen

“100M” in this material indicates 100 Million

FURUNO ELECTRIC CO., LTD. All Rights Reserved.

16 23 20

9

5 5

4 4

3

8 8

6

0

10

20

30

40

50

FY 2/2018 1st Quarter

FY 2/2019 1st Quarter

FY 2/2020 1st Quarter

Wireless LAN SystemsIndustrial OtherHealthcareCommunications & GNSS Solutions

Unit: 100 Millions of Yen

Communications & GNSS Solutions: Net sales 20.4 100M yen( -9.6% )

Healthcare: Net sales 4.7 100M yen( -10.4% )

Overview of Industrial Business, Wireless LAN Systems

Industrial Business: Net sales 27 100M yen ( -11.7% year on year )

Segment Profit 1.4 100M yen ( -2.0 100M yen ) ⇒ Communications & GNSS Solutions remain healthy

despite declines in revenue from the previous year due to fewer large deals.

⇒ Healthcare recorded declined revenue due to sluggish sales of our machinery.

Wireless LAN Systems: Net sales 6.1 100M yen ( -23.0% year on year )

Segment Loss 0.1 100M yen( -0.8 100M yen ) ⇒ Wireless LAN Access Point saw a revenue decline in the 1st quarter. Deals were concentrated in the 2nd quarter.

7

Net sales by Industrial Business & Wireless LAN Access Point

/Sales by Products

“100M” in this material indicates 100 Million

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Corporate Profile

8

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Outline

Company Name FURUNO 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 yen

President Yukio Furuno

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

As of Feb 28, 2019

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.

Radar

Satellite Communications

Equipment

Fish Finder/Sonar Multi Beam

Sonar

Automatic Identification

System ( AIS )

GPS/GNSS Disciplined Oscillator

GPS/GNSS Receiver for Car

Navigation System

GPS Plotter Ultrasound

Bone Densitometer

ETC

Voyage Data Recorder ( VDR )

Wireless Access Points

Clinical Chemistry Analyzer

GPS/GNSS Displacement Continuous

Remote Monitoring System

FURUNO's Business Fields

Meteorological Monitoring and

Analysing System

10