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All to brighten the world FURUKAWA ELECTRIC Furukawa Electric Group FY2026 Q1 Financial Results August 6 , 2026 Koji Aoshima , Representative Director & Senior Executive Officer , Chief Financial Officer Furukawa Electric Co. , Ltd. © FURUKAWA ELECTRIC CO . , LTD .
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This presentation materials are created for the purpose of providing information on Furukawa Electric’s activities for shareholders, investors, and members of the media. Forward-Looking Statements Projections of future sales and earnings in these materials are “forward-looking statements.” Management offers these projections in good faith and on the basis of information presently available. Information in these statements reflects assumptions about such variables as economic trends and currency exchange rates. Forward-looking statements incorporate known and unknown risks as well as other uncertainties that include, but are not limited to, the following items. • Economic trends in the U.S., Europe, Japan and elsewhere in Asia, and in other countries and regions, particularly with regard to consumer spending and corporate expenditures. • Changes in the exchange rates of the U.S. dollar, the euro, and the currencies of Asian countries and of other countries and regions. • Furukawa Electric Group’s ability to respond to rapid advances in technology. • Changes in assumptions involving financial and managerial matters and the operating environment. • Current and future trade restrictions and related matters in foreign countries. • Changes in the market value of securities held by the Furukawa Electric Group. Due to the above factors, actual sales, earnings, and other operating results may differ significantly from forward-looking statements in these materials. In addition, following the release of these materials, Furukawa Electric Group assumes no obligation to announce any revisions to forward-looking statement in these materials. Copyrights Furukawa Electric Co., Ltd. retains copyrights and other rights involving these materials. Copyright and otherwise reusing these materials in any way without prior consent is prohibited.
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Agenda © FURUKAWA ELECTRIC CO., LTD. Highlights of the FY26Q1 Financial Results and FY26 Forecasts FY26Q1 Financial Results Highlights FY26Q1 Financial Results -P/L Summary, Breakdown of Changes in Net Sales & Operating Profit Revisions to the FY26 Financial Forecasts FY26 Forecasts -P/L Summary, Operating Profit by Segment Net Sales & Operating Profit by Segment FY26Q1 Financial Results -B/S Summary CAPEX, Depreciation & Amortization and R&D Expenses Appendix 3 In the fiscal year ended March 31, 2026, a determination was made on the provisional accounting treatment concerning business combination, and the details of the determined provisional accounting treatment have been reflected in the figures for the fiscal year ended March 31, 2026.
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FY26Q1 Financial Results Highlights ■ Achieved higher revenue and profit YoY on increased sales of data center-related products ■ Highest Q1 net sales and profits at all profit levels since FY2001 4 Net sales Operating profit Ordinary profit Profit attributable to owners of parent JPY 365.2 billion YoY JPY +71.5 billion Change(%) ＋24％ JPY 25.5 billion YoY JPY +17.1 billion Change(%) ＋205％ JPY 31.0 billion YoY JPY +23.3 billion Change(%) ＋304％ JPY 22.2 billion YoY JPY +17.1 billion Change(%) ＋335％ FY25 Q1 FY26 Q1 YoY Average copper price (JPY/kg) 1,424 2,220 ＋796 Average exchange rate (USD/JPY) 145 160 ＋15
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a b b-a Net sales 293.7 365.2 +71.5 See page 6 Operating profit 8.3 25.5 +17.1 See page 7 (Margin) 2.8% 7.0% +4.1 Net interest income (expense) (2.0) (2.2) (0.3) Share of profit (loss) of entities accounted for using equity method 2.1 5.9 +3.8 Foreign exhange gains (losses) (2.3) (0.5) +1.8 Ordinary profit 7.7 31.0 +23.3 (Margin) 2.6% 8.5% +5.9 Extraordinary income (losses) (0.1) 0.1 +0.2 Income taxes (1.7) (8.0) (6.2) Profit attributable to non-controlling interests (0.7) (0.8) (0.1) Profit attributable to owners of parent 5.1 22.2 +17.1 (Margin) 1.7% 6.1% +4.3 Average copper price (JPY/kg) 1,424 2,220 +796 Average exhange rate (USD/JPY) 145 160 +15 (JPY billion) YoY change Breakdown of major changes（Q1）FY25 Q1 FY26 Q1 FY26Q1 Financial Results -P/L Summary 5 ・ Increased sales of data center- related products ・ Strong results at entities accounted for using equity method
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(JPY billion) 0 Including changes in scope of consolidation (service and developments, etc.) (18.6) JPY +71.5 billion 6 FY26Q1 Financial Results -Breakdown of Changes in Net Sales
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(JPY billion) JPY +17.1 billion Depreciation: (0.7) R&D expenses: +0.6 7 Including personnel expense: (2.6) 0 Optical Solutions: +5.0 Digital Infrastructure Components: +4.1 Energy Infrastructure: +0.5 Automotive Systems: +1.5 Metal Solutions: +0.4 Others: (0.1) Optical Solutions: +4.4 Digital Infrastructure Components: +0.5 Energy Infrastructure: +2.1 Automotive Systems: +1.7 Others: +0.6 FY26Q1 Financial Results -Breakdown of Changes in Operating Profit
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Net sales Operating profit Ordinary profit Profit attributable to owners of parent JPY 1,530.0 billion Change from previous forecast: JPY +70.0 billion Change(%) ＋5％ JPY 123.0 billion Change from previous forecast: JPY +28.0 billion Change(%) ＋29％ JPY 143.0 billion Change from previous forecast: YoY JPY +43.0 billion Change(%) ＋43％ JPY 105.0 billion Change from previous forecast: JPY +23.0 billion Change(%) ＋28％ Revisions to the FY26 Financial Forecasts ■ Revised the forecasts based on the Q1 financial results and business environment ■ FY26 annual dividend forecast maintained at JPY 22 per share, unchanged from the forecast announced on May 12, 2026 (interim dividend planned) 8*Announced on May 12, 2026 FY26 previous forecast* FY26 Q1 FY26 Q2 to Q4 assumption FY26 forecast Average copper price (JPY/kg) 2,000 2,220 2,230 2,227 Average exchange rate (USD/JPY) 150 160 160 160
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H1 H2 H1 H2 H1 H2 Net sales 610.7 696.9 1,307.6 700.0 760.0 1,460.0 720.0 810.0 1,530.0 +222.4 +70.0 Operating profit 19.1 44.7 63.9 35.0 60.0 95.0 49.5 73.5 123.0 +59.1 +28.0 (Margin) 3.1% 6.4% 4.9% 5.0% 7.9% 6.5% 6.9% 9.1% 8.0% +3.2 +1.5 Net interest income (expense) (3.9) (4.1) (8.0) － － － － － － － － Share of profit (loss) of entities accounted for using equity method +5.1 +11.5 +16.5 － － － － － － － － Foreign exhange gains (losses) (2.0) 2.1 0.2 － － － － － － － － Ordinary profit 20.3 55.6 75.9 37.0 63.0 100.0 60.5 82.5 143.0 +67.1 +43.0 (Margin) 3.3% 8.0% 5.8% 5.3% 8.3% 6.8% 8.4% 10.2% 9.3% +3.5 +2.5 Extraordinary income (losses) 0.4 28.7 29.1 0.5 20.5 21.0 1.0 17.5 18.5 (10.6) (2.5) Income taxes (6.2) (22.8) (29.0) － － － － － － － － Profit attributable to non-controlling interests (1.5) (1.8) (3.4) － － － － － － － － Profit attributable to owners of parent 12.9 59.7 72.5 25.0 57.0 82.0 42.5 62.5 105.0 +32.5 +23.0 (Margin) 2.1% 8.6% 5.5% 3.6% 7.5% 5.6% 5.9% 7.7% 6.9% +1.3 +1.2 Average copper price (JPY/kg) 1,461 1,929 1,695 2,000 2,000 2,000 2,225 2,230 2,227 +532 +227 Average exhange rate (USD/JPY) 146 155 151 150 150 150 160 160 160 +9 +10 c-b YoY change a b c c-a Change from previous forecasts (JPY billion) FY26 ForecastsFY26 Previous Forecasts*FY25 Results 9*Announced on May 12, 2026 FY26 Forecasts -P/L Summary
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(JPY billion) FY25 Results FY26 Previous forecasts FY26 Forecasts Change from previous forecasts Breakdown of changes Segments H1 H2 H1 H2 H1 H2 a b c c-b Optical Solutions 0.7 10.0 10.7 11.0 16.0 27.0 18.5 24.5 43.0 +16.0 Digital Infrastructure Components 6.3 9.7 15.9 10.0 29.0 39.0 15.5 35.5 51.0 +12.0 Energy Infrastructure 2.8 7.2 10.0 4.0 3.0 7.0 4.0 3.0 7.0 - Automotive Systems 10.3 16.0 26.4 12.0 11.0 23.0 12.5 10.5 23.0 - Metal Solutions 1.6 1.8 3.4 1.0 3.0 4.0 1.5 2.5 4.0 - Total (Including Service and Developments, etc. and eliminations) * 19.1 44.7 63.9 35.0 60.0 95.0 49.5 73.5 123.0 +28.0 * FY25 financial results for the batteries business have been included in Service and Developments, etc. (business was consolidated until FY2025 Q3) ■ Demand for data center-related products remains strong 10 Increased sales of data center-related products FY26 Forecasts -Net Sales & Operating Profit by Segment
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a b b-a Net sales 41.2 60.0 +18.8 Operating profit (0.7) 9.2 +9.9 (JPY billion) FY25 FY26 YoY change FY26 Q1 【Factors affecting profits】 (+) Increased sales of data center- related products • Accelerate development, capacity expansion and sales growth of data center-related products Recognition of the business environment Key points • Tightening supply-demand conditions driven by growing demand for data center-related products Rollable ribbon cables and related solutions 11 FY26 Full-year forecasts MT ferrules・ VSFF*2 connectors Specialty fiber (Fibers for submarine transmission lines and amplifiers)*1 Announced on May 12, 2026 *2 Very Small Form Factor Net Sales and Operating Profit by Segment Optical Solutions a b c c-a c-b Net sales 196.9 240.0 265.0 +68.1 +25.0 Operating profit 10.7 27.0 43.0 +32.3 +16.0 FY26 Forecasts YoY change Change from previous forecasts (JPY billion) FY25 Results FY26 Previous forecasts *1
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Recognition of the business environment a b b-a Net sales 44.9 59.6 +14.7 Operating profit 3.6 7.4 +3.8 FY25 FY26 YoY change (JPY billion) • Increased production and sales of high-value-added products for the data center market Increased production of water-cooling modules Transformation of the copper foil product mix (copper foil for high- frequency printed wiring boards) Increased production of optical semiconductor-related products 【Factors affecting profits】 (+) Increased sales of data center- related products • Tightening supply-demand conditions driven by growing demand for data center-related products 12 *2 DFB (Distributed Feedback Laser) chips Pump laser for Raman amplifiers SOA (Semiconductor Optical Amplifier） *1 Announced on May 12, 2026 Net Sales and Operating Profit by Segment Digital Infrastructure Components a b c c-a c-b Net sales 198.0 310.0 325.0 +127.0 +15.0 Operating profit 15.9 39.0 51.0 +35.1 +12.0 (JPY billion) FY25 Results FY26 Previous forecasts *1 FY26 Forecasts YoY change Change from previous forecasts Key points Tapes for semiconductor process High performance heat dissipation and cooling products Thin aluminum blanks for HDD Copper foil for high-frequency printed wiring boards High-performance foam products Optical semiconductor- related products*2 FY26 Q1 FY26 Full-year forecasts
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Recognition of the business environment Key points a b b-a Net sales 32.8 36.0 +3.2 Operating profit 0.9 3.0 +2.1 FY26 YoY change (JPY billion) FY25 【Factors affecting profits】 (+) Solid demand for domestic underground power cables (+) Deconsolidation of a Chinese subsidiary (+) Increased sales of functional power cables • Strengthen cable manufacturing and installation capabilities • Increase sales by promoting marketing activities 13 *1 Announced on May 12, 2026 *2 High Voltage Direct Current Net Sales and Operating Profit by Segment Energy Infrastructure a b c c-a c-b Net sales 138.8 130.0 130.0 (8.8) - Operating profit 10.0 7.0 7.0 (3.0) - FY25 Results FY26 Previous forecasts *1 FY26 Forecasts YoY change Change from previous forecasts (JPY billion) Domestic extra-high voltage power cable & submarine transmission lines Renewable energy- related projects Rakuraku aluminum cable® Functional power cable Transmission and distribution components HVDC＊2 Steady demand for underground power cables renewal and renewable energy-related projects in Japan Domestic extra- high voltage Submarine transmission lines Functional power cables/ components Steady demand FY26 Q1 FY26 Full-year forecasts
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a b b-a Net sales 83.0 92.0 +9.0 Operating profit 5.3 6.4 +1.1 FY25 FY26 YoY change (JPY billion) ・Market environment is generally steady and unchanged from last year. • Respond to the impact of US tariff policies • Promote assembly automation • Develop products for the EV market • Customer vehicle production remains at a level comparable to the previous year. • Uncertainty remains regarding the situation in the Middle East and U.S. tariffs policies. * Announced on May 12, 2026 14 Net Sales and Operating Profit by Segment Automotive Systems a b c c-a c-b Net sales 357.5 360.0 360.0 +2.5 - Operating profit 26.4 23.0 23.0 (3.4) - Change from previous forecasts (JPY billion) FY25 Results FY26 Previous forecasts *1 FY26 Forecasts YoY change FY26 Q1 FY26 Full-year forecasts Recognition of the business environment Key points Aluminum wire harnesses and high-voltage products
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a b c c-a c-b Net sales 372.9 445.0 475.0 +102.1 +30.0 Operating profit 3.4 4.0 4.0 +0.6 - Change from previous forecasts (JPY billion) FY25 Results FY26 Previous forecasts *2 FY26 Forecasts YoY change a b b-a Net sales 78.5 121.7 +43.1 Operating profit 0.8 0.8 (0.0) FY25 FY26 YoY change (JPY billion) ・ Market conditions remain generally favorable and are in line with the previous year. • Demand for electronics-related products is gradually recovering. • Improvement to the product mix by expanding sales of high- value-added products 15 *1 *1 FY25 FY26 Q1 Full- year Previous forecast*2 Q1 Q2 to Q4 assumption Full-year forecast Average copper price (JPY/kg) 1,424 1,695 2,000 2,220 2,230 2,227 Average exchange rate (USD/JPY) 145 151 150 160 160 160 Net Sales and Operating Profit by Segment Metal Solutions FY26 Q1 FY26 Full-year forecasts Recognition of the business environment Key points Oxygen-free copper product lineup (for power semiconductors and heat dissipation components) High-performance resistance materials (for smartphones and xEV) Ribbon cables & square cables (for high-performance inductors and memory applications) *2 Announced on May 12, 2026 *1 Including the impact of copper prices and foreign exchange fluctuations
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(JPY billion) End of FY25 End of FY26Q1 Change a b b-a Current assets 595.5 627.0 +31.4 Cash and deposits 69.2 60.7 (8.4) Notes and accounts receivable - trade, and contract assets 266.5 290.8 +24.4 Total inventories 210.9 224.6 +13.7 Non-current assets 470.9 504.3 +33.5 Property, plant and equipment 276.9 289.0 +12.1 Intangible assets 25.4 25.5 +0.1 Investments and other assets 168.5 189.8 +21.3 Total assets 1,066.4 1,131.3 +64.9 Current liabilities 428.7 463.2 +34.6 Non-current liabilities 202.5 213.1 +10.7 Total liabilities 631.1 676.3 +45.2 Shareholders' equity 356.2 363.6 +7.5 Accumulated other comprehensive income 60.9 73.3 +12.4 Non-controlling interests 18.2 18.0 (0.2) Total net assets 435.2 454.9 +19.7 Total liabilities and net assets 1,066.4 1,131.3 +64.9 Equity capital ratio 39.1% 38.6% (0.5) Net interest-bearing debt 247.5 292.1 +44.6 Net D/E ratio 0.59 0.67 +0.07 16 Total assets Increased by JPY 64.9 billion Increased working capital from sales growth FY26Q1 Financial Results -B/S Summary
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a b b-a c d d-c CAPEX 8.9 20.5 +11.6 56.7 150.0 +93.3 Depreciation and amortization 10.4 10.6 +0.2 43.2 46.0 +2.8 R&D expenses 7.6 6.6 (1.0) 28.4 30.0 +1.6 (JPY billilon) FY25 Q1 Q1 Results FY26 Q1 Q1 Results YoY change FY26 Forecasts YoY change FY25 Results ■ Full-year forecast unchanged 17 JPY 150.0 billion JPY 30.0 billion CAPEX R&D Expenses Announced on May 12,2026 HVDC related: Approx. 16.0 billion Heat dissipation and cooling products: Approx. JPY 45.0 billion DFB laser: Approx. JPY 7.0 billion Heat dissipation and cooling products: Approx. 7.0 billion HVDC related: Approx. JPY 3.0 billion CAPEX, Depreciation & Amortization and R&D Expenses ● Digital Infrastructure Components ● Energy Infrastructure ● Service and Developments, etc.● Automotive Systems ● Metal Solutions ● Optical Solutions
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Thank You FURUKAWA ELECTRIC GROUP PURPOSE
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© FURUKAWA ELECTRIC CO., LTD. Appendix ・FY26Q1 Results -Net Sales & Operating Profit by Segment ・FY26 Forecasts -Net Sales & Operating Profit by Segment ・Segments and Business Divisions 19
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(JPY billion) Q1 Q2 Q3 Q4 a b ｃ c-a c-b 41.2 49.8 48.0 57.9 60.0 +18.8 +2.1 44.9 51.7 48.5 52.9 59.6 +14.7 +6.7 32.8 34.4 33.7 38.0 36.0 +3.2 (2.0) 83.0 84.1 93.1 97.3 92.0 +9.0 (5.4) 78.5 81.9 98.0 114.6 121.7 +43.1 +7.0 28.2 30.2 34.2 13.3 11.3 (16.9) (2.0) (14.9) (15.0) (17.2) (15.4) (15.3) (0.5) +0.0 293.7 316.9 338.2 358.7 365.2 +71.5 +6.5 (0.7) 1.5 2.0 8.0 9.2 +9.9 +1.2 3.6 2.7 3.7 5.9 7.4 +3.8 +1.5 0.9 1.8 3.0 4.2 3.0 +2.1 (1.2) 5.3 5.1 6.9 9.1 6.4 +1.1 (2.7) 0.8 0.8 (0.3) 2.1 0.8 (0.0) (1.3) (1.4) (1.0) 0.5 (0.4) (1.1) +0.3 (0.7) (0.1) 0.0 (0.0) (0.0) (0.1) (0.0) (0.1) 8.3 10.8 15.9 28.9 25.5 +17.1 (3.4) Service and Developments, etc. * Metal Solutions Total Net sales Optical Solutions Digital Infrastructure Components Energy Infrastructure Automotive Systems Metal Solutions Service and Developments, etc. * Elimination of intra-company transactions Automotive Systems Energy Infrastructure Digital Infrastructure Components Total Optical Solutions Operating profit FY25 Elimination of intra-company transactions FY26 Q1 YoY Change OoQ Change Appendix. FY26Q1 Results -Net Sales & Operating Profit by Segment 20 * FY25 financial results for the batteries business have been included in Service and Developments, etc. (The business was consolidated until FY2025 Q3) Impact of the deconsolidation of the batteries business Net sales: JPY (17.7) billion Operating profit: JPY (0.5) billion * *
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(JPY billion) H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 91.0 105.9 196.9 115.0 125.0 240.0 120.0 145.0 265.0 +29.0 +39.1 +68.1 +5.0 +20.0 +25.0 96.5 101.4 198.0 130.0 180.0 310.0 130.0 195.0 325.0 +33.5 +93.6 +127.0 - +15.0 +15.0 67.2 71.7 138.8 65.0 65.0 130.0 65.0 65.0 130.0 (2.2) (6.7) (8.8) - - - 167.1 190.4 357.5 180.0 180.0 360.0 180.0 180.0 360.0 +12.9 (10.4) +2.5 - - - 160.4 212.6 372.9 220.0 225.0 445.0 235.0 240.0 475.0 +74.6 +27.4 +102.1 +15.0 +15.0 +30.0 58.4 47.5 105.8 25.0 25.0 50.0 25.0 25.0 50.0 (33.4) (22.5) (55.8) - - - (29.9) (32.6) (62.5) (35.0) (40.0) (75.0) (35.0) (40.0) (75.0) (5.1) (7.4) (12.5) - - - 610.7 696.9 1,307.6 700.0 760.0 1,460.0 720.0 810.0 1,530.0 +109.3 +113.1 +222.4 +20.0 +50.0 +70.0 - - - - - - 0.7 10.0 10.7 11.0 16.0 27.0 18.5 24.5 43.0 +17.8 +14.5 +32.3 +7.5 +8.5 +16.0 6.3 9.7 15.9 10.0 29.0 39.0 15.5 35.5 51.0 +9.2 +25.8 +35.1 +5.5 +6.5 +12.0 2.8 7.2 10.0 4.0 3.0 7.0 4.0 3.0 7.0 +1.2 (4.2) (3.0) - - - 10.3 16.0 26.4 12.0 11.0 23.0 12.5 10.5 23.0 +2.2 (5.5) (3.4) +0.5 (0.5) - 1.6 1.8 3.4 1.0 3.0 4.0 1.5 2.5 4.0 (0.1) +0.7 +0.6 +0.5 (0.5) - (2.5) 0.1 (2.4) (3.0) (2.0) (5.0) (2.5) (2.5) (5.0) (0.0) (2.6) (2.6) +0.5 (0.5) - (0.1) (0.1) (0.2) 0.0 0.0 0.0 0.0 0.0 0.0 +0.1 +0.1 +0.2 - - - 19.1 44.7 63.9 35.0 60.0 95.0 49.5 73.5 123.0 +30.4 +28.8 +59.1 +14.5 +13.5 +28.0 Total Digital Infrastructure Components Energy Infrastructure Metal Solutions Service and Developments, etc. *2 FY25 FY26 Previous Forecasts*1 FY26 Forecasts YoY Change Change from previous forecasts a b ｃ c-a c-b Operating profit Optical Solutions Automotive Systems Elimination of intra-company transactions Total Energy Infrastructure Metal Solutions Service and Developments, etc. *2 Digital Infrastructure Components Net sales Optical Solutions Automotive Systems Elimination of intra-company transactions Appendix. FY26 Forecasts -Net Sales & Operating Profit by Segment 21 *2 FY25 financial results for the batteries business have been included in Service and Developments, etc. (The business was consolidated until FY2025 Q3 * *1 Announced on May 12, 2026 *2*2*2 *2*2*2 Impact of the deconsolidation of the batteries business Net sales: JPY (59.0) billion Operating profit: JPY (1.8) billion
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Segment Business Division Optical Solutions Lightera Broadband and Network Business Digital Infrastructure Components AT & Functional Plastics Thermal Management Solutions & Products Memory Disk Copper Foil FITEL Products Photonics-Electronics Convergence Devices Energy Infrastructure Power Cable HVDC*1 FEMC*2, FEPS*3 Automotive Systems Metal Solutions Copper & High Performance Material Products Electric Conductor Superconducting Business Service and Developments, etc. Appendix. Segments and Business Divisions *1 High Voltage Direct Current *2 Furukawa Electric Power Systems Co., Ltd. *3 Furukawa Electric Metal Cable Co., Ltd. 22