Furukawa Electric : Notice Regarding Differences between FY2025 Consolidated Results Forecast and Actual Results, and Dividends from Surplus and Revision of Shareholder Return Policy

May 12, 2026

Differences have occurred between the consolidated results forecast announced on February 9, 2026 and the actual results announced today. The details of these differences are stated below.

Also, concerning the issuance of a dividend of surplus with a record date of March 31, 2026, Furukawa Electric Co., Ltd. (the "Company") resolved at the Board of Directors meeting held on May 12, 2026 to submit the following as a matter for resolution at the 204th General Meeting of Shareholders scheduled to be held on June 26, 2026.

1. Differences between the FY2025 consolidated results forecast and the actual results

   1. Differences between the FY2025 consolidated results forecast and the actual results（April 1, 2025 through March 31, 2026）

      	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Profit per Share
      Previous forecasts （A)	Million yen 1,300,000	Million yen 56,000	Million yen 65,000	Million yen 54,000	Yen 767.00
      Actual Results（B)	1,307,560	63,856	75,858	72,514	1,030.17
      Increase or decrease (B-A)	7,560	7,856	10,858	18,514	-
      Increase or decrease percentage (%)	0.6	14.0	16.7	34.3	-
      （Reference） Previous period results （Fiscal year ended March 31, 2025）	1,201,762	47,032	48,506	33,357	473.36

      (Note) 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, 2025.

   2. Reason

      In the consolidated financial results for the fiscal year ended March 31, 2026, operating profit exceeded the previous forecast due to increased sales of data center related products in the Communications Solutions Division, increased sales of functional power cable and transmission components in the Energy Infrastructure Division, price optimization in the Automotive Products Division and improved profits due to stable copper prices in the Electronics Component Material Division. Furthermore, profit attributable to owners of parent also exceeded the previous forecast primarily due to a larger-than-expected gain on revision to the retirement benefit plan following recent increases in share prices.

2. Dividends from surplus

   1. Particulars of Dividends

      	Decided Amount	Most Recent Dividend Forecast (announced on February 9, 2026)	Dividend for the Last Fiscal Year (Fiscal Year ended March 2025)
      Record Date	March 31, 2026		March 31, 2025
      Dividend per Share	210 yen	160 yen	120 yen
      Total Dividends	14,829 million yen	-	8,473 million yen
      Effective Date	June 29, 2026	-	June 26, 2025
      Dividend Source	Other Retained Earnings	-	Other Retained Earnings

   2. Reason

      The Company's capital allocation policy is to strike a balance among investments in growth and new business opportunity, improvement of balance sheet and shareholder returns, with management priority.

      Based on this policy, as its shareholder return policy during the period of the Medium-term Management Plan "Road to the Vision 2030: Transform and Challenge" ending in FY2025, the Company focuses on its investment in growth segments in order to increase corporate value through profit growth and provides a return to shareholders in a stable and continuous manner. Specifically, the Company makes performance-linked dividend distribution, which is projected to be approximately 30% of profit attributable to owners of parent.

      Concerning the year-end dividend for the fiscal year ended March 31, 2026, based on the full-year financial results, the Company has decided to issue a dividend of JPY 210 per share, an increase of JPY 50 from the previous dividend forecast of JPY 160 per share.

3. Revision of shareholder return policy and its reason

The Company has revised its shareholder return policy, under which it aims to maintain stable shareholder returns while continuing investments to enhance corporate value. Based on this policy, the Company has adopted DOE (dividend on equity*¹) as its dividend metric and plans to maintain dividends targeting a DOE of 3.5% over the five fiscal years from FY2026 to FY2030.

Reference (Dividend forecast for the fiscal year ending March 31, 2027 based on the revised policy)

*¹ "Equity" for DOE calculation is defined as the period-average balance of net assets excluding non-controlling interests.

*² Given the planned 10-for-1 stock split of common shares effective July 1, 2026, the annual dividend per share for the fiscal year ending March 31, 2027 (forecast) is presented on a post-split basis. For reference, the pre-split equivalent is JPY 220.

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