Presentation of Financial Results
First Half (Apr.-Sep) of FY2017

November 13, 2017

FUNAI ELECTRIC CO.,LTD.
TSE 6839

1Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Summary of 2nd Quarter (Jul.-Sep.)
Summary of First Half (Apr.-Sep.)
Summary of First Half (Apr.-Sep.)
Break Down of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Break Down of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures21. Summary of 2nd Quarter (Jul.-Sep.)(100 million yen)

FY2016
2Q

Net Sales
Operating Income(Margin)

Ordinary Income(Margin)

Net Income Attributable toowners of parent(Margin)

Average USD-JPY Exchange Rate

FY2017
2Q

Y/Y(Changes)-10411401-7-17-10(-1.8%)(-4.3%)(-)-16-14+2(-3.9%)(-3.7%)(-)-19-115-96(-4.6%)(-28.9%)(-)

102.90111.16(-2.3%)

Month End Exchange Rate

Jun.2016

Sep.2016

Jun.2017

Sep.2017(USD/JPY)

102.91101.12112.00112.733

2. Summary of First Half (Apr.-Sep.)(100 million yen)

FY2016 FH
Actual

FY2017 FH
Forecast

FY2017 FH
ActualNet Sales

661

814721

Operating Income-36

6-40(-5.5%)(0.8%)(-5.6%)-74

7-36(-11.3%)(0.9%)(-5.1%)

-76

4-130

(-11.5%)(0.4%)(-18.1%)105.72110.00111.29(Margin)

Ordinary Income(Margin)
Net Income Attributable toowners of parent(Margin)
Average USD-JPY
Exchange Rate

Month End Exchange Rate

Mar.2016

Sep.2016

Mar.2017

Sep.2017(USD/JPY)

112.68101.12112.19112.73(Y/Y)

Difference(Forecast)

+60

-93

(9.1%)(88.6%)-4-46+38-43-54-134

Difference43. Summary of First Half (Apr.-Sep.)(100 million yen)

FY2016 FH
ActualNon-operating income
Non-operating expenses（note:1）

Ordinary Income
Extraordinary income
Extraordinary losses（note:2）

Income before Income Taxes
Income taxes

Net Income Attributableto owners of parent(note:1

Non-operating income and expenses)

FY2016FH
1Foreign exchange
gain and loss-38

FY2017FH

10-1

Interest
incomeInterestPayments

4

FY2017 FH
ActualDifference
(Y/Y)

240

7
3+5-37-74-36+38212
100099-73-134-613-4-7-76-130-54(note:2Extraordinary income and losses)

FY2016FH

FY2017FH
1000-1Others

22

Extraordinary
income1
Extraordinarylosses

54. Break Down of Sales by Equipment
 AV Equipment: LCD TV Increased Info Equipment: Printers decreased due to slow sales of inkjet-printers and ink-cartridge
 Others:
Sales of receiving related equipment ceased due to the transfer of theDX antenna.
Y / Y (Change)(100million yen)721

AV Equip+110(+19.2%)0(+0.9%)+110(+23.1%)

Information Equip-2(-11.0%)

Others-48(-73.5%)

Total+60(+9.1%)

661

DVD Equip
TV Equip

AV Equipment575
DVD：101
T V ：474

685
DVD：101
T V ：584

Sales Composition
Others10%

Information 3%
Equipment
Information
Equipment

Others2165
FY2016 FH

1917

DVD
15%

OthersInformation
Equipment 3%2%DVD
14%

FY2016FY2017

T V 72%

T V 81%FY2017 FH
65. Sales of DVD related Equipment DVD related sales decreased, but sales remained flat due to an increasein sales of BD players and BD recorders.

DVD Players

101

101

2213116
DVD Recorders82
Blu-ray Disc

Others5675FY2016 FH

FY2017 FH(100million yen)

Y / Y (Change)
DVD Players-9(-39.8%)

DVD Recorders-15(-91.2%)

Blu-Ray disc+26(+45.4%)

Others-2(-27.0%)

Total0(＋0.9%)

7

6. Sales of LCD related Equipment
 Sales increased due to increase in unit price by upsizing the mainstream
size of LCD TV and exclusive sales of Yamada Denki in Japan.

584
474(100million yen)

Y / Y (Change)
LCD TV: +110 (+23.1%)

584

474

FY2016 FH

FY2017 FH8

7. Sales of Information Equipment Decreased due to decreased sales of ink-jet printers and ink-cartridges.

2119(100million yen)

Y / Y (Change)
InformationEquipment
2119FY2016 FH

FY2017 FH: -2(-11.0%)

9

8. Geographic Break Down of Sales
 Americas: LCD TVs and Blu-ray disc players increased.
 Japan:Sales of receiving related equipment ceased due to the transfer of the DX
antenna, but LCD TVs and Blu-ray disc recorders increased.
Y / Y (Change)(100million yen)

661

721

Americas-2(-0.5%)

Europe-3(-49.7%)

Asia & Others＋3(214.9%)

Japan+62(48.1%)

Total+60(9.1%)

523

Americas525

Sales Composition
JapanEurope
Asia & OthersJapan

5212925Japan

Asia & Others 19%1%
Europe 1%

27%

FY2016

1%191
Americas79%

FY2016 FH

Asia &Others

FY2017

Americas72%

FY2017 FH
109. Operating Income Analysis (Y/Y)(100million yen)

Y / Y (Change)
FY2016 FH

FY2017 FH

Operatingloss

Operatingloss△ 36△ 40
Add-valuedecrease
Fixed costdecrease△ 32+22
Sales
increase+611

10. Balance Sheet Conditions
Y / Y (Change)(100 million yen)

1,178
Cash / Deposit

AssetsLiabilities
AndNet Assets

369

AccountsReceivables

177

Inventories

299

1,086

401
156

1,123342
164

262

452

333

267

165

Trade Payables

191

279

Accounts Payables
and Others

254

186
134

733

1,178

Sep.2016- 55

・Cash / Deposit- 27・Accounts Receivables- 13

・Inventories

Fixed Assets
and Others

Net Assets

Assets・Fixed Assets and Others. - 168

Liabilities+ 50

・Trade Payables+ 88

・Accounts Payables
and Others

-38

216
766

1,086

Mar.2017

628

1,123

Sep.2017+ 153

Net Assets- 105（Equity Ratio55.9%）

12

11. Inventories Trends

Y / Y (Change)

Finished products： + 55Work in process： + 98

Inventories Turnover period in months

3.6

3.1

(100 million yen)

4.1

3.7

3.4

3.0
2.2

2.2

2.6

589
482

442

452

215

253

227

199

Jun.2017

Sep.2017

371

312

409
Finished products

329

227

Work in process180
Sep.2015

190

299
198

268

262

193

154

153

144

122

101

75

Dec.2015

Mar.2016

Jun.2016

Sep.2016

Dec.2016

108
Mar.2017

13

12. Capital Expenditures, Depreciation Expense and R&D Expenditures

First Half

Full Year

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures

Y/Y-5

Y/Yー

Y/Y-3

(100 million yen)

CapitalExpenditures

Depreciation
ExpenseR&D
Expenditures(100 million yen)8035303570326025745020704015301513101320103022528271000
FY2016 FY2017
FHFH

FY2016 FY2017
FHFH

FY2016 FY2017
FHFH

FY2016 FY2017(Forecast)

FY2016 FY2017(Forecast)

FY2016 FY2017(Forecast)14

Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment

3. Quarterly Sales Trends by Geography15

1. Quarterly Financial Summary of FY 2016 - 2017（100 million yen）

FY2016Net Sales
Operating Income(Margin)

Ordinary Income(Margin)

Net Income Attributableto owners of parent(Margin)Average USD-JPY
Exchange Rate

FY2017

1Q

2Q

3Q

4Q

1Q

250

411

373304320

401-28-7-10-21-23-17(-11.5%)(-1.8 %)(-2.7%)(-7.1%)(-7.3%)(-4.3%)-58-16

26-28-21-14(-23.4%)(-3.9%)(7.0%)(-9.4%)(-6.7%)(-3.7%)-57-19

23-14-15-115(-22.8%)(-4.6%)(6.2%)(-4.7%)(-4.7%)(-28.9%)108.53102.90111.25112.85111.41

2Q

111.1616

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others（100 million yen）

411

401
373

546951304
42250

320
5047314
255

328
211

160

93412311435

1635

1Q

2Q

3Q

4Q

FY20162567712101Q

2Q

FY201717

3. Quarterly Sales Trends by GeographyAmericas

EuropeAsia & OthersJapan（100 million yen）

411

401

373
304

320

250
344

304

288
216

219

181

2

3166

163

1Q

2Q
FY2016

1111

2
18185

99

92

3Q

4Q

1Q

2Q

34

FY201718

Disclaimer

This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that these statements
are based on information relating to factors that may impact future businessperformance that was available for analysis at the time this document was printed.
These factors include industry trends relating to the business areas of Funai ElectricCo., Ltd. or the Funai Group, such as audio-visual devices and information
communication equipment, the economic conditions of both domestic andinternational markets, and fluctuations in currency exchange rates. Actual
performance may greatly differ from projections included in this document because of
the impacts of uncertainty in such areas as the competitive conditions of theelectronics industry, market trends, currency exchange rate, introduction and successof new products, and various other global conditions that may affect the tax systemand other systems.

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