From April
1, 2009
To September 30, 2009

November 5, 2009
Funai Electric Co., Ltd.

Second Quarter (April-September) Consolidated Financial Summary
for the Period Ending March 2010

Previous Year Second Quarter

Current Year Second Quarter

From April 1, 2008
To September 30, 2008

From April 1, 2009
To September 30, 2009

AmountAmountPercent

Million yen

Net Sales%

Percent% increaseor decrease
from thesame periodof theprevious
consolidated
fiscal year％

Million yen％

144,659

100.0

167,095

100.0

15.5

Operating Income

4,320

3.0

10,0686.0

133.0

Ordinary Income

5,992

4.1

9,588

5.7

60.0

4,546

3.1

9,560

5.7

110.3

△12,102

△8.4

7,309

4.4

―

Net Income before Taxes andOther Adjustments

Net Income /Loss after Tax

Net Income/Loss per Share△ 354.97

214.41

Notes:
Includes 14 consolidated subsidiaries and 2 affiliated companies accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 6-Month Period ended September 30, 2009
November 5, 2009

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Inquiries: Representative’s
President and CEO
Tomonori Hayashi
position and name
General Manager Business Finance HQ
Hisao Fuke
position and name
Scheduled date of Submission of Quarterly Report ; November 10, 2009

TEL: (072) 870-4395

1. Second Quarter Consolidated Results for the Period Ending March 2010 (April 1, 2009 – September 30, 2009)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
2nd Quarter FY2009
2nd Quarter FY2008

nd

2 Quarter FY2009
2nd Quarter FY2008

Million yen%

Million yen

167,095
144,659

15.5−

10,0684,320

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted Basis

Yen

Yen

214.41△ 354.97

%

133.0
−

Million yen

%

9,588
5,992

60.0
−

Million yen

%

−
−

7,309
△12,102212.96−(2) Consolidated Financial Position
Shareholders’Equity Ratio

Net Assets

Total Assets
Million yen

Million yen

Net Assets
Per Share%Yen

2nd Quarter FY2009
Fiscal Year 2008

214,067
135,948
63.2
199,882
135,596
67.6(Reference) Shareholders’ Equity
2nd Quarter FY2009 ended September 30, 2009
135,348 million yen
Fiscal Year 2008 ended March 31, 2009
135,134 million yen

3,970.00
3,963.72

2. Dividends
Corresponding Period

Fiscal Year 2008
Fiscal Year 2009
Fiscal Year 2009
(Projection)st

1 Quarternd

2 Quarter

yen
−

0.00

−

0.00

Dividend per Share
3rd QuarteryenYear end

Annual

yen
−

40.00

yen

40.00

yen

−

40.00

40.00

3. Forecast of Consolidated Results for the Full Year (April 1, 2009 - March 31, 2010)(% denotes year on year)

Net Sales
Full Year

Operating Income Ordinary Income

Million yen%

Million yen

330,000

9.0

12,000%751.3

Million yen%

11,400 829.7

Net Income
Million yen

Net Income
Per Share%Yen

8,700 −

255.19

Note:
Revision of Forecast of Consolidated Results for the Six month period and the Full Year in this 2ndQuarter;No.

4. Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting for fiscal quarter : Yes
Note: Please refer to “Qualitative Information and Financial Statements”.
(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results(1)Changes arising from revision of accounting standards: Yes(2)Changes arising from other factors: No
Note: Please refer to “Qualitative Information and Financial Statements”.
(4) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of September 30, 2009; 36,104,196shares
as of March 31, 2009; 36,104,196shares(2)Number of shares of treasury stock as of September 30, 2009; 2,011,434shares
as of March 31, 2009; 2,011,321shares(3)The Average number in the quarter of outstanding shares on September 30, 2009; 34,092,798shareson September 30, 2008; 34,093,138shares

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 factorsthat may impact future business performance that was available for analysis at the time this document was
printed. These factors include industry trends relating to the business areas of Funai Electric Co., Ltd. or
the Funai Group, such as audio-visual devices and information communication equipment, the economic
conditions of both domestic and international markets, and fluctuations in currency exchange rates. Actual
performance may greatly differ from projections included in this document because of the impacts ofuncertainty in such areas as the competitive conditions of the electronics industry, market trends, currency
exchange rate, introduction and success of new products, and various other global conditions that may
affect the tax system and other systems.

Qualitative Information and Financial Statements
1. Qualitative information relating to consolidated business performance
During the first half of the consolidated fiscal year (April 1, 2009 to September 30, 2009), a recovery trend wasevident as a result of the monetary and fiscal policies in the developed and leading countries, and the global economy
pulled back from the crisis situation that had prevailed following the Lehman Shock in the autumn of 2008. With
uncertainty factors including exchange rates and job insecurities not yet eliminated, however, the future outlook forthe economy remained opaque.
In the consumer electronics industry, global demand for LCD televisions, the largest key product, continued to grownot only in Japan, the United States, and Europe, but in China as well, and a halt in the downward trend in sales prices
was temporarily seen. On the other hand, tight supply and demand conditions continued for LCD panels, the mostprimary component.
Under such conditions, net sales for the Funai Group for the first half of the consolidated fiscal year increased 15.5%
compared with the same period of the previous consolidated fiscal year to JPY167,095 million.
Viewed by individual products, in the audio-visual equipment category sales of LCD televisions increased
substantially, reflecting the contribution of Philips-brand products. Sales of DVD players were also higher, as weresales of Blu-ray Disc players, which are expected to grow in the future. Sales of DVD-related products overall fellslightly, however, as sales of television set-top boxes* for the U.S. market declined following the termination of
production in June 2009. As a result, net sales of audio visual equipment rose 23.6% year-on-year to JPY128,248
million.
*Devices to convert digital signals into analog signals, enabling viewers to watch terrestrial digital
broadcasting on existing analog televisions. Terrestrial analog broadcasting in the United States ended inJune 2009.
For information equipment, sales of printers increased because of higher in-coming orders from OEM partners.
Growth in digital still camera sales failed to materialize, however, as in-coming orders from OEM partners ran thecourse. As a result, net sales of information equipment slipped 4.5% compared with the same period one year ago to
JPY26,514 million.
Net sales of receivers and other related electronic devices fell 6.3% year-on-year to JPY12,332 million.
With regard to earnings, operating income jumped 133.0% compared with the same period of the previous
consolidated fiscal year to JPY10,068 million, mainly because of the boost to earnings from Philips-brand products.
Ordinary income rose 60.0% year-on-year to JPY9,588 million, reflecting the deterioration of extraordinary income
and extraordinary loss that occurred in the interim period of the previous consolidated fiscal year. Net income for the
first half was JPY7,309 million, compared with a net loss of JPY12,102 million in the first half of the previous
consolidated fiscal year that reflected in part the recognition of “income taxes for prior periods.”

2. Qualitative information relating to consolidated financial position
The financial position of Funai Electric Co., Ltd. at the end of the first half is discussed below.
Assets increased by JPY14,184 million compared with the end of the previous consolidated fiscal year. This primarilyreflected an increase in notes and accounts receivable-trade of JPY7,633 million, an increase in merchandise andfinished goods of JPY8,963 million, an increase in raw materials and supplies of JPY5,892 million, and a decrease of
JPY6,518 million in cash and deposits.
Liabilities increased by JPY13,832 million compared with the end of the previous consolidated fiscal year. The primaryfactors were an increase in notes and accounts payable-trade of JPY20,483 million and a decrease in short-term loans

payable of JPY10,934 million.
Net assets rose by JPY352 million compared to the end of the previous consolidated fiscal year. This mainly reflected anincrease of JPY5,946 million in retained earnings, an increase of JPY457 million in valuation difference on marketablesecurities, and a decrease of JPY6,189 million in foreign currency translation adjustment.

3 .Qualitative Information Relating to Consolidated Performance Forecasts:

Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on October 29,
2009 for information regarding earnings forecasts.

Note: Our performance forecasts include figures based on decisions according to the information available at the time andinclude items that are subject to risks and uncertainties. Actual performance may vary from these forecasts due to rapidchanges in economic conditions in the United States, our primary market, and other regions overseas, as well as rapid
fluctuations in product prices.

4. Other(1) Important changes relating to subsidiaries and affiliates during the fiscal term (changes involving specific subsidiaries
that resulted in changes to the scope of consolidated accounting)
There are no relevant changes.

(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation of financial
statements covering consolidated accounting for fiscal quartera. Simplified accounting procedure
The amount of allowance for depreciation and amortization is calculated by distributing the applicable amount for the
consolidated fiscal year over fiscal terms. This is because our company, as well as our consolidated domestic subsidiaries,
adopt the diminishing balance or fixed percentage depreciation method (except for buildings acquired on or after April 1,
1998 that do not include incidental facilities, which are calculated using the fixed amount or straight line depreciation
method).

b. Unique accounting procedure for preparation of consolidated financial statements for fiscal quarter
Expenses relating to taxes are calculated by applying the estimated effective tax rates on the before-tax net profit for the
fiscal quarter, through a practical estimation of the effective tax rates that will take effect after the application of the tax
effect accounting for before-tax net profits of the consolidated fiscal year, including this second fiscal quarter.
The corporate tax adjustment is included in the indicated corporate taxes.

(3) Changes to general rules and procedures, as well as denotation methods for accounting relating to the preparation of
consolidated financial statements for the fiscal quarter• Changes relating to items concerning accounting procedure standards
In the past, the Construction Completion Method was exclusively used to account for revenues associated with
contract works. Starting from the current first quarter consolidated accounting period, the “Accounting Standard forConstruction Contracts” (Accounting Standard No. 15 of the Financial Accounting Standards Foundation dated
December 27, 2007) and the “Guidance on Accounting Standard for Construction Contracts” (Guidance No. 18 of the
Financial Accounting Standards Foundation dated December 27, 2007) have been applied to certain contract works.
As such, any contract works that commenced during the first quarter consolidated accounting period and from the firstquarter to the current second quarter consolidated accounting period had a degree of progress which can be calculatedwith a certain level of accuracy at the end of such quarter was accounted for using the Percentage of Completion
Method (the cost ratio method was used to calculate contract work completion rate). For other contract works, theConstruction Completion Method continued to be used.
The effect on net sales or profit/loss is minimal as a result of this accounting standards change.

(4) Corrective action implemented based on the application of the Anti-Tax Haven Law
a. On June 28, 2005 we received a notice from the Osaka Regional Taxation Bureau regarding the implementation ofcorrective action. This notice indicated a decision regarding our subsidiary in Hong Kong, suggesting that it did notsatisfy the conditions for exclusion from application of the Anti-Tax Haven Law.
The notification furthermore indicated that the Osaka Regional Taxation Bureau decided to incorporate the income
generated by our subsidiary in Hong Kong into the income of our company for the duration of three years, from April 1,
2001, to March 31, 2004, for taxation purposes. We applied for an assessment by the Administrative Review Office of
the Osaka Regional Taxation Bureau on July 25, 2006, and filed an appeal to have the action cancelled with the Osaka
District Court on November 16, 2006, as we object to this corrective action.
Thereafter, on July 3, 2008, we received a written verdict on this case from the Administrative Review Office of the
Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. This arbitration is truly
unfortunate and unacceptable. Currently, we are making every effort to assert the validity of our position to the court.
The additional tax amounts to JPY16,651 million (JPY19,184 million including incidental taxes), including corporate,
residential, and business taxes. We processed these amounts in the fiscal term ending March 2007 as “retroactive
corporate taxes,” since the accounting procedures relating to additional tax amounts have been clarified through theamendment of the “Handling of Audits Relating to Accounting Procedures and Disclosures for Taxes” (Report No. 63of the Auditing and Guaranteeing Work Committee of the Japanese Institute of Certified Public Accountants) on March
8, 2007.

b. On June 16, 2008 we received a notice from the Osaka Regional Taxation Bureau indicating their decision toincorporate the income generated by our subsidiary in Hong Kong into the income of our company for the duration of
three years, from April 1, 2004, to March 31, 2007, for taxation purposes. In response, we applied for an assessment by
the Administrative Review Office of the Osaka Regional Taxation Bureau on August 6, 2008 and filed an appeal tohave the action cancelled with the Osaka District Court on November 14, 2008.
Thereafter, on July 23, 2009, we received a written verdict on this case from the Administrative Review Office of the
Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. The Company deems thisdecision to be truly unfortunate and unacceptable, and we intend to continue asserting the validity of our position to thecourt in the future. At present, the Osaka District Court is reviewing the action in conjunction with the previous action(dated June 28, 2005).
A provisional estimate for the additional tax, including corporate, residential, and business taxes, amounts to
JPY15,038 million (JPY16,838 million including incidental taxes). This amount has been processed as expenses under
the category of “retroactive corporate taxes” in this first fiscal quarter of the consolidated fiscal term.

Since decisions regarding the tax system under action will be made according to the conditionof the applicable overseas subsidiaries at the time such subsidiaries’ fiscal years are completed,
we can only offer reference figures at this time. As such, in regard to the consolidated fiscal
years following the year of the investigation (i.e., the fiscal years ending March 2008 and those
thereafter), a calculation to assess the impact of the applicable tax system on the income of theHong Kong subsidiary was carried out. The calculated impact at the parent company level
after deducting the dividend income received from the Hong Kong subsidiary for the fiscal
years ended March 2008 and 2009 was estimated to be JPY700 million including corporate,
residential, and business taxes. Due to the aforementioned reason, however, the accounting
procedure for the figure relating to this effect has not yet been conducted.

5. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
2nd Quarter FY2009(As of September 30, 2009)

Fiscal year 2008
(As of March 31, 2009)ASSETS;
Current Assets
Cash and deposits

89,98496,503

Notes and accounts receivable-trade36,47828,844Merchandise and finished goods

29,88920,925Work in process

1,911

1,635

Raw materials and supplies

14,0098,116

Others

5,782

7,957

Allowance for doubtful accounts

△ 216

△ 273

Total current assets

177,839

163,709

Property, plant and equipment

16,386

16,025Intangible assets

5,487

5,647

Others

15,22016,061

Allowance for doubtful accounts△ 866△ 1,561

Total investments and other assets

14,353

14,499Total noncurrent assets

36,22736,173214,067

199,882

Notes and accounts Payable-trade

48,641

28,157

Short-term loans payable

2,003

12,938

Income taxes payable

1,165

1,623

Reserve for products guarantee

2,782

2,191

Provision

410

302

Others18,925

15,168

Total current liabilities

73,92860,382

833

666

Provision

2,376

2,343

Others

980

894

4,190

3,904

78,11864,286

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Long-term loans receivable

Total noncurrent liabilities
TOTAL LIABILITIES(Mil. Yen)
2nd Quarter FY2009(As oｆ September 30, 2009)

Fiscal year 2008
(As of March 31, 2009)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

115,993

110,047

Treasury stock△ 24,340△ 24,340

156,178

150,233358△ 98

Foreign currency translation adjestment△ 21,189△ 14,999

Total valuation and translation adjestments△ 20,830△ 15,098

Subscription rights to shares

40

17

Minority interests

559

443

TOTAL NET ASSET

135,948

135,596

TOTAL LIABILITIES AND NET ASSETS

214,067

199,882

Total shareholders' equity
Valuation and translation adjustments
Valuation difference on avaiable-for-sale securities

(2).Concolidated quartely statements of income(Mil. Yen)
2nd Quarter FY2008

2nd Quarter FY2009( from April 1, 2008
to September 30, 2008 )144,659( from April 1, 2009
to September 30, 2009 )
167,095

Cost of sales

117,043

133,083

Gross profit

27,61534,012

Selling, general and administrative expenses

23,29423,943Operating income

4,320

10,068Interest income

1,785

446

Dividends income

42

23

Foreign exchange gains

164

-

Other

432

217

2,424

688

Interest expenses

174

43

Equity in losses of affiliates

121

30

-

969

Other

455

125

Total non-operating expenses

751

1,168

5,992

9,588

Gain on prior period adjustment

357-

Gain on sales of noncurrent assets

60Profit on Sales of Investment Securities

-

34

Other

109

9

Total extraordinary income

474

43

Loss on disposal of noncurrent assets

41

56

Special sales promotion

850-

Liquidation loss on affiliated company

656

-

Other

372

15

1,921

72

Income before income taxes and minority interests

4,546

9,560

Income taxes

△ 277

2,117

Income taxes for prior periods

16,838-

Total income taxes

16,561

2,117

87

132

△ 12,102

7,309

Net sales

Non-operating income

Total non-operating income
Non-operating expenses

Foreign exchange loss

Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary losses

Minority interests in income
Net income/ loss

(3).Concolidated quartely statements of cash flows(Mil. Yen)
2nd Quarter FY2008

2nd Quarter FY2009( from April 1, 2008
to September 30, 2008 )( from April 1, 2009
to September 30, 2009 )Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

4,546

9,560

Depreciation and amortization

2,470

2,785

Increase(decrease) in allowance for doubtful accounts

375

△ 750

Increase(decrease)in provision for retirement benefits

△ 82

38

△ 1,827△ 470

Interest expenses

174

43

Equity in (earnings) losses of affiliates

121

30

Loss (gain) on sales of property, plant and equipment30

1Interest and dividends income

△ 26

△ 34

Loss (gain) on valuation of investment securities

45

4

Evaluation loss of affiliated company's equity

327-

Decrease (increase) in notes and accounts receivable-trade△ 15,834△ 10,897

Decrease (increase) in inventories△ 33,765△ 17,633

Increase (decrease) in notes and accounts payable-trade28,14025,405

Other, net

11,640

6,023

Subtotal△ 3,663

14,105

1,660

579

Loss (gain) on sales of investment securities

Interest and dividends income received

△ 170

△ 42

△ 4,445△ 2,499

Income taxes refund

-

1,737

Prior year's taxes paid

△ 16,838-

Net cash provided by (used in) operating activities△ 23,457

13,879△ 19,781△ 45,410

12,37955,825△ 1,446△ 2,448

Interest expenses paid
Income taxes paid

Net cash provided by (used in) investment activities:
Payments into time deposits
Repayments from time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

617

196

Purchase of intangible assets

△ 139

△ 606

Purchase of investment securities

△ 245

△ 28

Proceeds from sales of investment securities

1,137

184

Other, net

△ 44

△ 19

△ 7,522

7,692

7,954

△ 10,647-

600

Repayment of long-term loans payable△ 1,086△ 433

Cash dividends paid

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Increase of long-term loans payable△ 1,704△ 1,363

Other, net

△ 10

△ 48

Net cash provided by (used in) financing activities

5,153△ 11,892

Effect of exchange rate change on cash and cash equivalents

198△ 1,746

Net increase (decrease) in cash and cash equivalents△ 25,628

7,932

Cash and cash equivalents at beginning of period

57,10040,180Cash and cash equivalents at end of period:

31,471

48,113

(4) Notes for Continuing Enterprises
Not Applicable(5) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.

Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information

Previous Second Quarter (April 1, 2008 - September 30, 2008)
Asia(Units: Million Yen)
EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

62,281

74,814322

7,239

144,659−

144,659

Inter-segment sales

80,974

13

113,39714

194,399(194,399)

−

Total

143,256

74,828

113,720

7,253

339,058(194,399)

144,659

1,814

1,666

3,607

△1,644

5,443(1,123)

4,320

Net Sales

Operating

IncomeandLosses(△)

Current Second Quarter (April 1, 2009 - September 30, 2009)(Units: Million Yen)

Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

52,426111,349

191

3,128

167,095−

167,095

Inter-segment sales

98,561

24

104,2621

202,850(202,850)

−

Total

150,988

111,373

104,4543,129

369,946(202,850)

167,095

5,490

4,371

4,237

△906

13,194(3,125)

10,068Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales

Previous Second Quarter (April 1, 2008 - September 30, 2008)
N. America
Overseas sales

100,026(Units: Million Yen)
Asia

Europe4,138

19,506

Other
3,052

Consolidated sales
Ratio of overseas sales to consolidated sales (%)

69.1

N. America

2.9

13.5

124,905

2.1

87.6(Units: Million Yen)
Asia

Europe3,662

14,953

Other
4,474

Consolidated sales
Ratio of overseas sales to consolidated sales (%)

126,723
144,659

Current Second Quarter (April 1, 2009 - September 30, 2009)

Overseas sales

Total

Total
147,995
167,095

74.8

2.2

8.9

2.7

88.6

(6) Notes of remarkable changes in Shareholders Equity:
Not Applicable6. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Previous Year Second Quarter

Current Year Second Quarter

From April 1, 2008

From April 1, 2009

To September 30, 2008

To September 30, 2009

AmountAmountPercent

By Equipment Type％

Percent% increase or
decrease fromthe same periodof the previous
consolidated
fiscal year
Percent％％

Audiovisual Equipment

103,73971.7

128,248

76.7

23.6

Information Equipment

27,75419.2

26,51415.9△4.5

Other Equipment

13,165

9.1

12,332

7.4△6.3

144,659

100.0

167,095

100.0

15.5

％

％

Total

％
Japan

By Region

17,935

12.4

19,100

11.4

6.5

N. America

100,026

69.1

124,905

74.8

24.9

Europe19,50613.5

14,953

8.9

△23.3

Asia

4,138

2.9

3,662

2.2

△11.5

Other Areas

3,052

2.1

4,474

2.7

46.6

Subtotal

126,723

87.6

147,995

88.6

16.8

144,659

100.0

167,095

100.0

15.5

ExportTotal(Note) Main Products by Type of Equipment
Equipment
Audiovisual Equipment

Main Products
LCD Televisions, DVD Players, DVD Recorders,
Blu-ray Disc Players

Information Equipment

Printers, Digital Still Cameras

Other Equipment

Receiver-Related Electronic Equipment

(Reference) Change in Operating Results for the Most Recent Quarters
Fiscal Period Ending March 2010 (Consolidated)
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2009

July - Sept 2009

Oct - Dec 2009

Jan - March 2010

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

77,66889,426−−Gross Profit

15,23918,772−−

Operating Income

3,706

6,362

−

−

Ordinary Income

4,081

5,506

−

−

Quarterly Net Income Before
Taxes and Other Adjustments

4,106

5,453

−

−

Quarterly Net Income/Loss

3,171

4,138

−

−

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

93.01

121.40−−−−Fully Diluted Quarterly Net
Income per Share

92.42

120.53−−−−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

210,089

214,067−−

Net Assets

136,253

135,948

−

−

Yen

Yen

Yen

3,970.00−−

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2008

July - Sept 2008

Oct - Dec 2008

Jan - March 2009

Yen

Net Assets per Share

3,981.10

Fiscal Period Ended March 2009 (Consolidated)

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

59,44985,20995,436

62,681Gross Profit

12,336

15,278

10,2206,637

Operating Income

988

3,332

△1,047△ 1,863

Ordinary Income

4,448

1,544

△3,599△ 1,166

Quarterly Net Income Before
Taxes and Other Adjustments

3,967

579

△6,222△ 1,586△13,779

1,676△3,943△ 1,318

Quarterly Net Income/LossYen

Quarterly Net Income per Share△404.16

Fully Diluted Quarterly Net
Income per Share

−

−

Yen

49.18
−

−

Yen

Yen

△115.68△ 38.67

−

−

−

−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

227,888244,460

210,728

199,882

Net Assets

147,591

146,345

130,470

135,596

Yen

Yen

4,275.73

3,810.66

Yen

Net Assets per Share

4,312.60

Yen

3,963.72

from 2009.4.1
to 2009.9.30

Page
1. Summary of 2Q (April to September) Financial Statements（Consolidated）(1) Operating Results, Financial Conditions

1(2) Profitability and Per Share Data etc.

1(3) Capital Expenditures, Depreciation, R&D Expenses

1(4) Cash Flow2

2. Operating Activities（Consolidated）(1) Sales by Equipment

2(2) Sales by Areas in Equipment

3(3) Sales by Equipment in Areas3

3. 2Q (July to September) Operating Activities (Consolidated)(1) Operating Results

4(2) Sales by Equipment

4

1. Summary of Second Quarter Operating Results (Consolidated)(1) Operating Results, Financial Conditions（Units：100million yen, %）FY20082Q
AmountFull-Year%

Change Amount

1,446 100.0 △ 7.5

Net Sales

FY2009%2Q
Change Amount

3,027 100.0

9.2%

1,670 100.0

Full-Year (Projections)
Change Amount
15.5%

3,300 100.0

Change9.0

Operating Income

43

3.0

108.8

14

0.5

−

100

6.0

133.0

120

3.6

751.3

Ordinary Income

59

4.1

18.6

12

0.4

−

95

5.7

60.0

114

3.5

829.7

△ 121 △ 8.4−△ 173 △ 5.7

−

73

4.4

−

87

2.6

−

Net Income/Los afterTax
Total Assets

2,444

−

−

1,998

−

−

2,140

−

−

−

−

−

Net Assets

1,463

−

−

1,355

−

−

1,359

−

−

−

−

−

（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）

FY20082Q

FY2009Full-Year106.22Average Rate in each Period

2Q
100.66

94.78

Full-Year (Projections)
90.00(2) Profitability and Per Share Data etc.
FY20082Q

FY2009Full-Year

2Q

Full-Year (Projections)

（％）

19.1

14.7

20.4

18.6

Operating Income Ratio （％）

3.0

0.5

6.0

3.6

Gross Profit Ratio

Ordinary Income Ratio （％）

4.1

0.4

5.7

3.5

Shareholders' Equity Ratio （％）

59.6

67.6

63.2

-

Net Assets Per Share （yen）

4,275.73

3,963.72

3,970.00-

Net Income Per Share （yen）△ 354.97△ 509.33

214.41

255.19

（％）

△ 4.6

△ 8.2

3.2

-

Return On Shareholders' Equity （％）△ 7.5△ 11.95.2-

Number of Total Employees （人）

2,659

2,590

2,447

-

Return On Asset(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY20082Q
AmountCapital Expenditures

Full-Year
AmountChange13

FY2009△ 64.92Q
Change50

Amount2.0

29

FY20082Q
Amount% to Sales

Full-Year (Projections)
AmountChange123.1

Change54

8.0

FY2009Full-Year

Change Amount% to Sales

2Q
Change Amount% to Sales

Full-Year (Projections)
Change Amount% to Sales

ChangeDepreciation Expenses

18

1.2 △ 35.7

36

1.2 △ 25.0

20

1.2

11.1

43

1.3

19.4

R&D

67

4.6 △ 13.0

130

4.3 △ 11.6

66

4.0

△ 1.5

139

4.2

6.9

−1−

(4) Cash Flow
（Units：100million yen）
FY2009Full-Year (Projections)
138−

FY20082Q

2Q

Full-Year

Cash flows provided by operating activities△ 234

Income Before Income Taxes

45

Depreciation Expenses

△

△ 32

95

49

27

−

24

16

−

24
△ 303

Others7△−

Cash flows used in investing activities

△

75

△ 107

76

−

Free Cash flows

△ 309

△ 114

214

−

Cash flows provided by financing activities

Effect of exchange rate changes

on cash and cash equivalents
Net increase in cash andcash equivalents

51

△

25

△ 118

−

1

△

28

△

17

−

79

−

△ 169

△ 256

2. Operating Activities (Consolidated)(1) Sales by Equipment（Units：100million yen, %）FY20082Q
AmountAudio Visual Equipment

1,037

%
71.7

FY2009Full-Year

Change Amount
5.8

2,306

%
76.1

2Q
Change Amount
25.2

1,282

%
76.7

Full-Year (Projections)
Change Amount
23.6

2,522

%
76.4

Change
9.4

VCRs

11

0.8 △ 56.020

0.7 △ 55.6

8

0.5 △ 27.3

10

0.3 △ 50.0

DVD

239

16.5 △ 18.7

402

13.3 △ 23.3

238

14.2 △ 0.4

410

12.4

2.0

BD Players

76

5.3

−

122

4.0

−

109

6.5

195

5.9

59.8

Televisions57

3.9 △ 59.6

LCD Televisions

498

34.4

10.7

1,342

44.3

49.6

791

Others82

2.7 △ 68.0

5

43.4

0.3 △ 91.2
47.4

6

58.8

1,710

0.2 △ 92.7
51.8

27.4

156

10.8

680.0

338

11.1

686.0

131

7.8 △ 16.0

191

5.8 △ 43.5

Information Equipment277

19.2 △ 38.7

450

14.9 △ 30.7

265

15.9 △ 4.5

519

15.7

Others

132

9.1

271

9.0 △ 3.0123

7.4 △ 6.3259

7.9 △ 4.4

Total

1.4

1,446 100.0 △ 7.5

3,027 100.0

−2−

9.2

1,670 100.0

15.5

3,300 100.0

15.3

9.0

(2) Sales by Areas in Equipment（Units：100million yen, %）FY20082Q
AmountAudio Visual Equipment%

FY2009Full-Year

Change Amount%

2Q
Change Amount%Full-Year (Projections)
Change Amount%

Change

1,037

71.7

5.8

2,306

76.1

25.2

1,282

76.7

23.6

2,522

76.4

9.4

North America

869

60.1

17.0

1,971

65.1

41.7

1,151

68.9

32.5

2,204

66.8

11.8

Europe110

7.6 △ 32.5

211

7.0 △ 26.7

56

3.3 △ 49.1

114

−

1

0.0 △ 66.7

3

0.2

−

7

Asia and Others

0

0.0

3.4 △ 46.0
0.2

600.0

58

4.0 △ 19.4123

4.0 △ 22.6

72

4.3

24.1

197

6.0

60.2

277

19.2 △ 38.7

450

14.9 △ 30.7

265

15.9 △ 4.5

519

15.7

15.3

North America

125

8.6 △ 53.9

174

5.8 △ 56.8

92

5.5 △ 26.4

209

6.3

20.1

Europe82

5.7 △ 33.9149

4.9 △ 9.1

92

5.5

12.2

189

5.8

26.8

Asia and Others

68

4.7

21.4

122

4.0

76

4.6

11.8

114

3.4 △ 6.6

2

0.2

100.0

5

0.2 △ 16.7

5

0.3

150.0

7

132

9.1

1.4

271

9.0 △ 3.0123

7.4 △ 6.3

259

Japan
Information Equipment

Japan
Others1,446 100.0 △ 7.5

Total

3,027 100.0

58.4

9.2

1,670 100.0

15.5

0.2

40.0

7.9 △ 4.4

3,300 100.0

9.0(3) Sales by Equipment in Areas（Units：100million yen, %）FY20082Q
AmountNorth America

1,000

%

FY2009Full-Year

Change Amount%

2Q
Change Amount%Full-Year (Projections)
Change Amount%

Change69.1 △ 2.3

2,161

71.4

19.3

1,249

74.8

24.9

2,419

73.3

11.9

65.1

41.7

1,151

68.9

32.5

2,204

66.8

11.8

5.8 △ 56.8

92

5.5 △ 26.4

209

6.3

20.1

Audio Visual Equipment

869

60.1

17.0

1,971

Information Equipment

125

8.6 △ 53.9

174

6

0.4 △ 40.0

16

0.5 △ 5.9

6

0.0

6

0.2 △ 62.5

195

13.5 △ 32.6

364

12.0 △ 20.2

149

8.9 △ 23.3

304

9.2 △ 16.5

Audio Visual Equipment110

7.6 △ 32.5

211

7.0 △ 26.7

56

3.3 △ 49.1

114

3.4 △ 46.0

Information Equipment82

5.7 △ 33.9149

4.9 △ 9.1

92

5.5

12.2

189

5.8

Others

3

0.2

50.0

4

0.1

0.0

1

0.1 △ 66.7

1

0.0 △ 75.0

4.4

3.7 △ 6.8

OthersEuropeAsia and Others

72

5.0

18.0

132

Audio Visual Equipment

0

0.0

−

1

Information Equipment

68

4.7

21.4

122

0.3

0.4

45.1

81

4.9

12.5

123

0.0 △ 66.7

3

0.2

−

7

4.0

76

4.6

11.8

114

58.4

100.0

9

0.4 △ 18.2

2

179

12.4 △ 5.0

37012.2 △ 10.3

191

11.4

Audio Visual Equipment58

4.0 △ 19.4123

4.0 △ 22.6

72

Information Equipment

2

0.2

100.0

5

0.2 △ 16.7

5

119

8.2

2.6

242

8.0 △ 2.4

114

OthersJapan

OthersTotal

4

1,446 100.0 △ 7.5

3,027 100.0

−3−

9.2

0.1 △ 50.0

2

0.2

26.8

600.0

3.4 △ 6.6
0.1 △ 77.8

6.5

454

13.8

22.7

4.3

24.1

197

6.0

60.2

0.3

150.0

7

0.2

40.0

6.8 △ 4.2

250

7.6

3.3

3,300 100.0

9.0

1,670 100.0

15.5

3. 2Q (July to September) Operating Activities (Consolidated)(1) Operating Results（Units：100million yen, %）FY2008FY20092Q（Jul.−Sep.）
Amount%852

Net Sales

2Q（Jul.−Sep.）
Change100.0

Amount

7.9

%

894

Change100.0

4.9Operating Income

33

3.9

271.9

63

7.1

90.9

Ordinary Income

15

1.8

169.4

55

6.2

256.6

Net Income/Los afterTax

16

2.0

−

41

4.6

146.9

（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）

FY2008FY20092Q（Jul.−Sep.）

2Q（Jul.−Sep.）

107.01

Average Rate in each Period

92.80(2) Sales by Equipment（Units：100million yen, %）Amount

FY2008FY20092Q（Jul.−Sep.）

2Q（Jul.−Sep.）%

ChangeAmount%Change

620

72.8

26.0

676

75.6

9.0

VCRs

5

0.6

△ 58.3

5

0.6

0.0

DVD

139

16.3

△ 1.4

116

13.0

△ 16.5BD Players

55

6.5

−

71

7.9

29.1

Televisions

31

3.6

△ 26.22

0.2△ 93.5

LCD Televisions

299

35.1

21.1

448

50.1

49.8

Others

91

10.7

355.0

34

3.8

△ 62.6170

20.0△ 29.2

156

17.5

△ 8.2

Audio Visual Equipment

Information Equipment
Others

62

7.2

6.9

62

6.9

0.0

Total

852

100.0

7.9

894

100.0

4.9

−4−

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS DEPARTMENT
7-7-1 Nakagaito Daito city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-870-4613