Furukawa Electric Co., Ltd. TSE:5801

Furukawa Electric : Presentation Materials for First Three Months of the Fiscal Year Ending March 31, 2026

Published

Source: MarketScreener



Furukawa Electric Group FY2025 Q1 Financial Results

August 7, 2025

Koji Aoshima

Representative Director and Corporate Senior Vice President General Manager, Finance & Accounting Division

Furukawa Electric Co., Ltd.

© FURUKAWA ELECTRIC CO., LTD.



Agenda

FY25Q1 Financial Results and FY25 Full-year Forecasts

  • FY25Q1 Financial Results Highlights

  • FY25Q1 Financial Results - P/L Summary

  • Overview of the FY25 Full-year Forecasts

  • FY25 Full-year Forecasts - Net Sales & Operating Profit by Segment

  • FY25Q1 Financial Results - Breakdown of Changes in Net Sales & Operating Profit

  • Net Sales & Operating Profit by Segment

  • FY25 Q1 Financial Results - B/S Summary

  • CAPEX, Depreciation & Amortization and R&D Expenses

    Appendix

    © FURUKAWA ELECTRIC CO., LTD. 3



    FY25 Q1 Financial Results

    and FY25 Full-year Forecasts

    © FURUKAWA ELECTRIC CO., LTD. 4



    • Net sales and each level of profit increased compared to last year

(JPY billion, JPY/kg, JPY/USD)

FY24_Q1

FY25_Q1

YoY change

a

b

b-a

Net sales

273.6

293.7

+20.2

Operating profit

3.5

8.4

+4.9

Ordinary profit

7.1

7.8

+0.7

Profit attributable to owners of parent

4.7

5.2

+0.5

Average copper price 1,570

1,424

(146)

Average exchange rate 156

145

(11)

5

FY25 Q1 Financial Results -P/L Summary

(JPY billion, JPY/kg, JPY/USD)

FY24_Q1

FY25_Q1

YoY change

Breakdown of change（Q1）

a

b

b-a

Net sales

273.6

293.7

+20.2

See page 10

Operating profit

3.5

8.4

+4.9

See page 11

（Margin）

1.3%

2.9%

+1.6

Interest income (expenses)

(1.9)

(2.0)

(0.0)

Share of profit (loss) of entities accounted for

using equity method

4.5

2.1

(2.4)

Change in equity-method affiliates

Foreign exhange gains (losses)

1.0

(2.3)

(3.3)

Ordinary profit

7.1

7.8

+0.7

（Margin）

2.6%

2.6%

+0.1

Extraordinary income (losses)

(1.8)

(0.1)

+1.7

・Extraordinary income (0.6) [0.9 → 0.3]

・Extraordinary loss

+2.3 [(2.7) → (0.4)]

Income taxes

0.3

(1.8)

(2.1)

Profit attributable to non-controlling interests

(0.8)

(0.7)

+0.1

Profit attributable

to owners of parent

4.7

5.2

+0.5

（Margin）

1.7%

1.8%

+0.0

Average copper price

1,570

1,424

(146)

Average exhange rate

156

145

(11)

6



Overview of the FY25 Full-year Forecasts
  • Full-year forecast remains unchanged

    • Updated the impact of tariffs

    • Net sales and operating profit have been revised in certain segments (see page 8)

      (JPY billion, JPY/kg, JPY/USD)

      FY24

      Results

      FY25

      Forecasts*

      YoY change

      a

      b

      b-a

      Net sales

      1,201.8

      1,200.0

      (1.8)

      Operating profit

      47.1

      53.0

      +5.9

      Ordinary profit

      48.6

      52.0

      +3.4

      Profit attributable to owners of parent

      33.4

      36.0

      +2.6

      Average copper price 1,478

      1,335

      (143)

      Average exchange rate 153

      140

      (13)

      (Reference)

      Impact and response of tariffs introduced by the United States

      Direct impact of tariffs

Response

Increase in cost

  • Purchases of raw materials,

    and products, etc.

  • Tariff burden during sales

etc.

Communications Automotive Solutions Products

& Batteries

Recovery of the cost increase

  • Incorporate the tariffs into the sales prices

  • Change the supply chain

  • Change the trade terms

etc.

* Announced on May 13, 2025

  • At present, various measures to address cost increases are generally progressing as initially expected at the beginning of the fiscal year

7



FY25 Full-year Forecasts
  • Net Sales & Operating Profit by Segment

    Changes

    • Automotive Products & Batteries: Timing of Furukawa Battery Co., Ltd.'s deconsolidation (from Q3 to Q4)

      （JPY billion）

      Net sales

      Operating profit

      Operating profit

      FY25

      i

      Change

    • Functional Products: Impact of TWD appreciation (Copper foil), and revenue decline due to changes in demand from key customers (Tape for semiconductor process)

FY24_Q1

FY25_Q1

YoY change

FY24_Q1

FY25_Q1

YoY change

FY24

Results

Previous forecasts*

FY25

Forecasts

YoY change

from

previous forecasts

FY

Res

24

ults

Prev ous forecasts*

FY

Foreca

25

sts

YoY change

from

previous forecasts

a

b

b-a

ｃ

ｄ

d-c

e

f

g

g-e



g-f

h

i

j

j-h

j-i

Infrastructure

68.7

80.3

+11.5

(2.8)

0.1

+2.8

309.1

375.0

375.0

+65.9

-

5.8

14.0

14.0

+8.2

-

Communications Solutions

37.0

47.0

+10.0

(4.0)

(0.7)

+3.3

167.0

235.0

235.0

+68.0

-

(4.0)

7.5

7.5

+11.5

-

Energy infrastructure

31.8

33.3

+1.5

1.3

0.8

(0.4)

142.1

140.0

140.0

(2.1)

-

9.8

6.5

6.5

(3.3)

-

Electronics & Automotive Systems

167.2

173.7

+6.5

4.2

6.6

+2.4

736.4

640.0

665.0

(71.4)

+25.0

32.6

25.0

27.0

(5.6)

+2.0

Automotive Products & Batteries

94.1

96.2

+2.1

3.6

5.6

+2.0

409.5

345.0

370.0

(39.5)

+25.0

27.6

20.0

22.0

(5.6)

+2.0

Electronics Component Materials

73.1

77.4

+4.3

0.6

1.0

+0.5

327.0

295.0

295.0

(32.0)

-

5.0

5.0

5.0

0.0

-

Functional Products

35.9

37.3

+1.4

3.4

4.0

+0.6

147.0

185.0

160.0

+13.0

(25.0)

14.1

19.0

17.0

+2.9

(2.0)

Service and Developments, etc.

8.2

9.7

+1.5

(1.2)

(2.1)

(0.8)

34.8

40.0

40.0

+5.2

-

(5.4)

(5.0)

(5.0)

+0.4

-

Elimination of intra-company transactions

(6.5)

(7.3)

(0.8)

(0.1)

(0.2)

(0.1)

(25.6)

(40.0)

(40.0)

(14.4)

-

(0.1)

0.0

0.0

+0.1

-

Total

273.6

293.7

+20.2

3.5

8.4

+4.9

1,201.8

1,200.0

1,200.0

(1.8)

-

47.1

53.0

53.0

+5.9

-

Net sales

FY25

Change

* Announced on May 13, 2025

8



FY25 Forecasts -Operating Profit by Segment

Operating profit of main segments

(JPY billion)

Segments

Sub-segments

FY24 Results

FY25 Forecasts

YoY change

Main reason of YoY change

Q1

Q2 to Q4

Q1

Q2 to Q4

Q1

Q2 to Q4

a

ｂ

ｂ-a

Infrastructure

Communications Solutions

(4.0)

0.0

(4.0)

(0.7)

8.2

7.5

+3.3

+8.2

+11.5

  • Increased net sales of data center related products (realize benefits from investing in increased production)

  • Differences in profitability of individual projects

1.3

8.5

9.8

0.8

5.7

Energy

Infrastructure

6.5

(0.4)

(2.9)

(3.3)

Electronics & Automotive Systems

Automotive Products & Batteries

3.6

24.0

27.6

5.6

16.4

22.0

+2.0

(7.6)

(5.6)

  • Deconsolidation of Furukawa Battery Co., Ltd. (Q4)

  • Decreased sales in Chinese and Southeast Asian market (from Q2)

  • Increased fixed expenses

Electronics Component Material

0.6

4.4

5.0

1.0

4.0

5.0

+0.5

(0.5)

0.0

Functional Products

3.4

10.7

14.1

4.0

13.0

17.0

+0.6

+2.3

+2.9

  • Firm demand for data center related products

Consolidated total

3.5

43.6

47.1

8.4

44.6

53.0

+4.9

+1.0

+5.9

(include service and developments, etc.

segment, and elimination)

(Reference) Average copper price JPY/kg Average foreign exchange JPY/USD



Including foreign exchange impact of about JPY(4.0) billion

FY24_Q1

FY25_Q1

FY24_

Q2 to Q4

FY25_

Q2 to Q4

FY24

FY25

(Ref.)

1,570

1,424

1,448

1,335

1,478

1,357

156

145

152

140

153

141

9

-Breakdown of Changes in Net Sales

(JPY billion)

JPY+20.2 billion

0

Including changes in the scope of consolidation

10





FY25Q1 Financial Results


-Breakdown of Changes in Operating Profit

(JPY billion)

JPY +4.9 billion

Depreciation expenses: (0.2)

R&D expenses: (1.2)

0

Communications Solutions: +3.8

Energy Infrastructure: +0.3 Electronics Component Material: +0.1 Functional Products: +1.1

Others: +0.4

Communications Solutions: +0.3

Energy Infrastructure: (0.1) Automotive Products & Batteries: (0.3) Functional Products: (0.3)

Communications Solutions: +1.7

Energy Infrastructure: (0.1) Automotive Products & Batteries: +2.6 Electronics Component Material: +0.4 Functional Products: +0.6

Others: (0.1)

11



1-(1) Infrastructure (Communications Solutions)

FY25_Forecasts

  • Respond to the impact of the US tariffs

  • Strengthen development, manufacturing, and sales system of products for the data center market

*2 Distributed Feedback Laser

DFB laser*2

MT ferrules

Rollable ribbon cable and solution

Key points

Unchanged

FY25_Q1 Results Increased profit

（JPY billion）

FY24

Results

FY25

previous

forecasts*1

FY25

Forecasts

YoY change

Change from previous forecasts

a

b

c

c-a

c-b

Net sales

167.0

235.0

235.0

+68.0

-

Operating profit

(4.0)

7.5

7.5

+11.5

-

on higher revenue

(JPY billion)

FY24_Q1

FY25_Q1

YoY

change

a

b

b-a

Net sales

37.0

47.0

+10.0

Operating profit

(4.0)

(0.7)

+3.3

Recognition of the business environment

＞＞

FY25_H1

FY25_H2

＞＞

Increased demand for the data center market

(Data center operators, dark fiber and communication system providers)

【Factors affecting profits】

(+) Increased sales of data center related products, etc.

*1 Announced on May 13, 2025

12





1-(2) Infrastructure (Energy Infrastructure)

FY25_Q1 Results Decreased profit

on higher revenue

(JPY billion)

FY24_Q1

FY25_Q1

YoY

change

a

b

b-a

Net sales

31.8

33.3

+1.5

Operating profit

1.3

0.8

(0.4)

【Factors affecting profits】

Domestic extra-high voltage

Steady demand for renewal of underground power cable in Japan and renewable energy projects

Submarine lines

China

Unclear when demand will recover

  • Japan extra-high voltage, renewable energy and functional power cable demand will continue to be firm

    FY25_Forecasts

    （JPY billion）

    FY24

    Results

    FY25

    previous forecasts*

    FY25

    Forecasts

    YoY change

    Change from previous forecasts

    a

    b

    c

    c-a

    c-b

    Net sales

    142.1

    140.0

    140.0

    (2.1)

    -

    Operating profit

    9.8

    6.5

    6.5

    (3.3)

    -

    Unchanged

Recognition of the business environment

＞＞

FY25_H1

FY25_H2

＞＞

Functional power cable/components

Steady demand

Key points

* Announced on May 13, 2025

  • Secure orders with a focus on profits

    Renewable energy projects

Domestic extra-high voltage and submarine lines

  • Increase cable manufacturing and installation capacity

    Transmission and distribution components

Rakuraku aluminum cableⓇ

  • Increase sales by promoting marketing activities

    13



    Net Sales and Operating Profit by Segment

    2-(1) Electronics & Automotive Systems (Automotive Products & Batteries)

    FY25_Q1 Results Increased profit

    on higher revenue

    (JPY billion)

    FY24_Q1

    FY25_Q1

    YoY

    change

    a

    b

    b-a

    Net sales

    94.1

    96.2

    +2.1

    Operating profit

    3.6

    5.6

    +2.0

    【Factors affecting profits】 (+) Price optimization

    (+) Battery business remains solid

    FY25_Forecasts

    （JPY billion）

    FY24

    Results

    FY25

    previous

    forecasts*1

    FY25

    Forecasts

    YoY change*2

    Change from previous forecasts

    a

    b

    c

    c-a

    c-b

    Net sales

    409.5

    345.0

    370.0

    (39.5)

    +25.0

    Operating profit

    27.6

    20.0

    22.0

    (5.6)

    +2.0

    Upward revision

Recognition of the business environment

＞＞

FY25_H1

FY25_H2

＞＞

Decreased sales in Chinese and Southeast Asian market

Customer vehicle production volume remains unchanged from the previous year

Automotive Products

Assuming deconsolidation

from Q4

Batteries

Key points

*1 Announced on May 13, 2025

*2 Impact of the deconsolidation of the batteries business (assuming Q4)

Net sales: About JPY (21.0) billion Operating profit: About JPY (2.0) billion

  • Respond to the impact of the US tariffs

  • Develop products for the EV market

    Aluminum wire harnesses and high-voltage products

  • Automation of assembly

14



Net Sales and Operating Profit by Segment

2-(2) Electronics & Automotive Systems (Electronics Component Material)

FY25_Forecasts

FY25_Q1 Results Increased profit

on higher revenue

(JPY billion)

FY24_Q1

FY25_Q1

YoY

change

a

b

b-a

Net sales

73.1

77.4

+4.3

Operating profit

0.6

1.0

+0.5

（JPY billion）

FY24

Results

FY25

previous

forecasts*2

FY25

Forecasts

YoY change

Change from previous forecasts

a

b

c

c-a

c-b

Net sales

327.0

295.0

295.0

(32.0)

*1

-

Operating profit

5.0

5.0

5.0

0.0 -

Unchanged

Recognition of the business environment

＞＞

FY25_H1

FY25_H2

＞＞

Gradual recovery in demand for electronics-related products

【Factors affecting profits】

  • Operating profit will be unchanged

    *1 Including the impact of changes in copper prices and foreign currency exchange

    *2 Announced on May 13, 2025

    (Reference)

    (resistance materials)

    (for telecommunications and infrastructure)

    Ribbon cable and ultra fine flat wire High performance products

    Heat-resistant oxygen-free copper strips (for power semiconductors/

    heat dissipation components)

    Key points

    • Improved product mix by expanding sales of high-value-added products

    FY24_Q1

    FY25_Q1

    1,570

    1,424

    156

    145

    Average copper price JPY/kg Average exchange rate JPY/USD

    • Optimize sales prices and withdraw from low-margin products

    15

    3 Functional Products

    FY25_Q1 Results Increased profit

    on higher revenue

    (JPY billion)

    FY24_Q1

    FY25_Q1

    YoY

    change

    a

    b

    b-a

    Net sales

    35.9

    37.3

    +1.4

    Operating profit

    3.4

    4.0

    +0.6

    【Factors affecting profits】

    (+) Increased sales of data center related

    Products

    (-) Impact of TWD appreciation (Copper foil)

    (-) Revenue decline due to changes in

    demand from key customers (Tape for semiconductor process)



    FY25_Forecasts

    （JPY billion）

    FY24

    Results

    FY25

    previous forecasts*

    FY25

    Forecasts

    YoY change

    Change from previous forecasts

    a

    b

    c

    c-a

    c-b

    Net sales

    147.0

    185.0

    160.0

    +13.0

    (25.0)

    Operating profit

    14.1

    19.0

    17.0

    +2.9

    (2.0)

    FY25_Forecasts

    Recognition of the business environment

    Key points

    • Increase production and sales of high-value-added products for data center and renewable energy markets

    High performance foam products

    Thin aluminum blanks for HDD

    Copper foil for high frequency circuit boards

    High performance heat dissipation and cooling products

    Tape for semiconductor

    process

    ＞＞ FY25_H1 FY25_H2 ＞＞

Downward revision

Data center investments will continue to be active

Recognition of the business environment

Impact of foreign exchange (TWD appreciation)

Progress toward domestic semiconductor manufacturing in China

Key points

  • Increase production and sales of high-value-added products for data center and renewable energy markets

* Announced on May 13, 2025

High performance foam products

Thin aluminum blanks for HDD

16



FY25Q1 Financial Results -B/S Summary

(JPY billion)

End of FY24

End of FY25Q1

Change















Total assets Decreased by JPY 13.0 billion

Impact of foreign currency exchange JPY (12.7) billion

Investments and other assets Increased by JPY 5.4 billion

Investment securities JPY +5.5 billion

Property, plant and equipment, and intangible assets

Decreased by JPY 1.7 billion

Inventories Increased by JPY 3.9 billion

Impact of projects and construction expected to be recorded as net sales in the future JPY +3.8 billion

Current assets



556.4

539.8

(16.6)

Cash and deposits



60.0

51.1

(8.8)

Notes and accounts receivable - trade,

and contract assets



260.6

247.6

(13.0)

Total inventories

195.0

198.9

+3.9

Non-current assets



430.6

434.2

+3.6

Property, plant and equipment



277.0

275.3

(1.7)

Intangible assets



22.9

22.8

(0.0)

Investments and other assets

130.7

136.0

+5.4

Total assets

987.0

974.0

(13.0)

Current liabilities



394.5

376.9

(17.6)

Non-current liabilities

219.2

227.3

+8.1

Total liabilities

613.7

604.2

(9.5)

Shareholders' equity



291.5

288.4

(3.1)

Accumulated other comprehensive

income



49.9

50.1

+0.2

Non-controlling interests

31.9

31.3

(0.6)

Total net assets

373.3

369.8

(3.5)

Total liabilities and net assets

987.0

974.0

(13.0)

Equity capital ratio

34.6%

34.8%

+0.2

Net interest-bearing debt

246.2

272.7

+26.5

Net D/E ratio

0.72

0.81

+0.08

a b b-a







17



CAPEX, Depreciation & Amortization and R&D Expenses
  • Full-year forecast remains unchanged

    ｟Announced on May 13, 2025｠

    (JPY billilon)

    FY24_Q1

    FY25_Q1

    YoY change

    a

    b

    b-a

    CAPEX

    6.9

    8.9

    +2.0

    Depreciation and amortization

    10.1

    10.3

    +0.2

    R&D expenses

    6.4

    7.6

    +1.2

    FY24

    Results

    FY25

    Forecasts

    YoY change

    c

    d d-c

    38.6

    54.0

    +15.4

    41.3

    42.0

    +0.7

    25.4

    29.0

    +3.6

    R&D

    expense

    JPY29.0

    billion



    CAPEX

    JPY54.0

    billion



    • Communications Solutions

    • Energy Infrastructure

    • Automotive Products & Batteries

    • Electronics

      Component Material

    • Functional Products

    • Service and

      Developments, etc.

      18

      Thank you

      FURUKAWA ELECTRIC GROUP PURPOSE

      Composing the core of a brighter word.

      © FURUK





      Appendix

      • Segments and Business Divisions

© FURUKAWA ELECTRIC CO., LTD. 20





Appendix Segments and Business Divisions

Segment

Sub-segment

Business Division

Infrastructure

Communications Solutions

Optical Solutions (Fiber & Cables)

FITEL Products

Broadband Solutions Business

Energy Infrastructure

Power Cable

Industrial Cable & Power Cable Accessories

Electronics & Automotive

Systems

Automotive Products

& Batteries

Automotive Products

Batteries

Electronics Component Material

Electric Conductor

Copper & High Performance Material Products

Functional Products

AT & Functional Plastics

Thermal Management Solution & Products

Memory Disk

Copper Foil

Service and Developments, etc.

21



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