Presentation of Financial Results forthe 2nd Quarter (Apr.‐Sep.) of FY2015

November 10, 2015

FUNAI ELECTRIC CO., LTD.
TSE 68390Outline of Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Summary of 2nd Quarter(Jul.‐Sep.)
Summary of 2nd Quarter (Apr.‐Sep.)
Summary of 2nd Quarter (Apr.‐Sep.) (Ordinary Income, Net Income)Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Geographic Breakdown of Sales
Breakdown of Changes in Operating Income
Financial Conditions
Changes of Inventories
Capital Expenditures, Depreciation Expense and R&D Expenditures
Revised Financial Forecast for FY2015
Revised Forecast of Sales by Equipment for FY2015
Revised Forecast of Sales by Geography for FY2015
11. Summary of 2nd Quarter (Jul.‐Sep.)(100 million yen)

FY 2014
Jul‐Sep

FY 2015
Jul‐Sep

S a l e s728

491

Operating Income

34‐11)(4.7%)(‐2.3%)

Ordinary Income

52‐30)(7.2%)(‐6.1%)Net Income Attributableto owners of parent

49‐36(6.8%)(‐7.5%)

N e t(((MMMaaarrrgggiiinnn)Average USD‐JPY
Exchange Rate

105.34

Y/Y‐237(‐32.5%)‐45‐82‐85

121.72Month End Exchange Rate

Jun/14

Sep/14

Jun/15

Sep/15(USD/JPY)

101.36109.45122.45119.962

2. Summary of 2nd Quarter (Apr.‐Sep.)（100 million yen）

2Q FY2014 2Q FY2015 2Q FY2015
ActualForecast
ActualS a l e s

1,158

911

868

Operating Income

13‐14‐54( M a r g i n )(1.2%)(‐1.5%)(‐6.3%)

Ordinary Income

27‐18‐67( M a r g i n )(2.4%)(‐2.0%)(‐7.8%)

N e t I n c o m e At t r i b u ta b l e
to owners of parent

26‐21‐76( M a r g i n )(2.3%)(‐2.3%)(‐8.8%)N e t

Average USD‐JPY
Exchange Rate

103.61118.00Difference(Y / Y)

Difference(Forecast)‐290‐43(‐25.0%)(95.3%)‐67‐40‐94‐49‐102‐55

121.72Month End Exchange Rate

Mar/14

Sep/14

Jun/15

Sep/15(USD/JPY)

102.92109.45120.17119.963

3. Summary of 2st Quarter (Apr.‐Jun.)(Ordinary Income, Net Income)（100 million yen）

2Q FY2014

2Q FY2015184

Non‐operating income
Non‐operating expenses

316‐15+12‐67‐9416‐1+629‐72‐101

34+126‐76‐102

Ordinary Income

27

Extraordinary income
Extraordinary losses

20

Income before Income Taxes
Income taxes

N e t I n c o m e At t r i b u t a b l e
to owners of parent(note:1 Non-operating income and expenses)

Y/Y(note:1)(note:2)(note:2 Extraordinary income and losses)
FY2014Extraordinary
incomeExtraordinarylosses

FY2015

OthersInterest
incomeDividends
incomeForeign exchange
gain and loss

4

4. Breakdown of Sales by Equipment
 AV Equipment: Decreased, because last year the shipment of LCD TVs for year‐end sales
season focused on the first half.
 Info Equipment: Decreased, LBP Printers Others: Declined, Antennas and Audio Accessories.
（100 million yen）

（100 million yen）

Y/Y

1,158

AV Equipment: ‐ 164( ‐18.0% )DVD Equip. : ‐ 17 ( ‐ 11.6%)
LCD TV: ‐ 147 ( ‐ 19.2%)

868

Information Equipment :‐ 66( ‐68.7%):‐ 60( ‐38.9%):‐290 ( ‐25.0%)

OthersAVEquipment

910
D V D ：146
LCD TV ：764

Total746
Sales CompositionD V D ：129
LCD TV：617
OthersInformation
Equipment
OthersInformation
Equipment

96152

30
92

2Q FY2014

2Q FY2015(Apr.‐Sep.)(Apr.‐Sep.)

DVD

13% 13%DVD
Information Others
11%
Equipment 3%
15%8%FY2014
LCD TVFY2015
LCD TV66%

71%

55. Sales of DVD related Equipment DVD‐VCR products increased, but Blu‐ray Disc related products decreased,because the market has been shrinking.
（100 million yen）

146
DVD Players

DVD Recorders

28
25

129

Y/Y

31
Blu‐ray disc6948

Others24（100 million yen）

35

DVD Players:+ 7 (+25.0% )DVD Recorders:+ 6 (+24.0% )Blu‐ray disc:‐ 21 ( ‐ 30.4% )Others:‐ 9 (‐ 37.5% )

Total

:

‐17 ( ‐ 11.6% )15

2Q FY2014

2Q FY2015(Apr.‐Sep.)(Apr.‐Sep.)

66. Sales of LCD Television The sales of SANYO products was strong, but overall sales decreased due tointensifying price competition in some LCD TVs markets.
（100 million yen）

764
617
Y/Y

LCD TVsLCD TVs

764:‐147 ( ‐19.2% )617

2Q FY2014(Apr.‐Sep.)

2Q FY2015(Apr.‐Sep.)

7

7. Geographic Breakdown of Sales
 Americas: Increased DVD‐related products, Decreased LCD TVs and Audio Accessories
 Japan: Increased LCD TVs, but Decreased BD‐related products（100 million yen）

Y/Y

1,158
868
Americas

Americas: - 249( - 26.2% )Europe: - 26( - 73.5% )Asia & Others :-7( - 55.2% )Japan-8( - 4.6% ): - 290( - 25.0% )

Total

950
Sales Composition

701

EuropeAsia & Others
Japan:

35
12161

95153

Asia &Others

Japan

Europe1% 14%3%FY2014
Americas

2Q FY2014(Apr.‐Sep.)

2Q FY2015(Apr.‐Sep.)

Asia &Others

82%Japan1%
Europe1%

17%
FY2015

Americas81%88. Breakdown of Changes in Operating Income＊ Add‐value=Sales – (Cost of sales + selling expenses)

FY2014 vs FY2015（100 million yen）

Forecast vs Actual

Operating
IncomeOperating
Income13-28

Operating
Income-14
Declined
add‐value*

Operating
IncomeSales
declined-5

Sales
declined

Declined
add‐value*-54-54-34-38
Increase ofgeneralexpenses

Decrease ofgeneral
expenses-5
2Q FY2014＋3
2Q FY2015

Forecast
2Q FY2015

Actual2Q FY2015
99. Financial Conditions（100 million yen）
（100 million yen）

Cash / Deposit

AssetsLiabilities
AndNet Assets

1,913

1,896

1,872

Comparison to Sep. 2014

589

668

441

Assets‐ 41431

・Cash / Deposit‐ 148

・Accounts Receivables+52

・Inventories+105

・Fixed Assets and Others‐50

Accounts
Receivables

379

Inventories

491

381
425

596

Fixed Assets
and Others

454

422

404

Trade Payables

314

316

250

Accounts Payables
and Others

366

302

441

Net Assets

1,233

1,278

1,181

1,913

1,896

1,872

Sep. 2014

Mar. 2015

Sep. 2015

Liabilities+11

・Trade Payables‐64・Accounts Payables
and Others+75

Net Assets‐52（ Equity Ratio62.5%）

10

10. Changes of Inventories（100 million yen）

596
491
425
（100 million yen）

415
Finished products

Work in process

346

Comparison to Sep. 2014

264

145

161

181

Sep. 2014

Mar. 2015

Sep. 2015

2.9 months

3.6 months

Finished products: + 69Work in process: + 36<Inventories Turnover>2.0 months

1111. Capital Expenditures, Depreciation Expense and R&D Expenditures
2Q (Apr.‐Sep.)
CapitalExpenditures

Depreciation
ExpenseFull Year（100 million yen）

100CapitalExpenditures

R&DExpenditures

Depreciation
Expense（100 million yen）

Difference Y/Y

Difference Y/Y

Difference Y/Y‐12‐6+21008080606040407447392041203291422823220

R&D
Expenditures

10FY2014 FY2015

17FY2014 FY2015

0FY2014 FY2015

FY2014FY2015(Projection)

FY2014FY2015(Projection)

FY2014FY2015(Projection)

1212. Revised Financial Forecast for FY2015(Full year)（100 million yen）

FY2014
Actual

FY2015PreviousForecast

FY2015
RevisedForecast

S a l e s

2,170

2,200

1,879

Operating Income

516‐60( M a r g i n )( 0.3%)(0.7%)(‐3.2%)O rd i n a r y I n com e

1912‐75( M a r g i n )( 0.9%)(0.5%)(‐4.0%)Net Income Attributablet o o w n e rs o f p a r e n t

134‐95( M a r g i n )( 0.6%)(0.2%)(‐5.1%)

110.62118.00119.86

N e t

Average USD‐JPY
Exchange Rate

Difference(Y/ Y)

Difference(PreviousForecast)‐ 291‐321( ‐ 13.4%)(85.4%)‐65‐76‐94‐87‐108‐9913

13. Revised Forecast of Sales by Equipment for FY2015

Comparison toPrevious Forecast‐ 15.8%Comparison toPrevious Forecast+ 2.9%303

FY2014【Plus Factor】

264

272

FY2015FY2015PreviousForecast

RevisedForecast（ 100 million yen ）TV related Equipment

DVD related Equipment

・The sales of DVD willbe strong

2,170
303

1,649
1,421

FY2014

1,388

FY20152,200264【Plus Factor】
・Severe price andshare competition

1,879
272

FY.2015

Previous Revised
Forecast Forecast

1,421

1,649

OthersInformation Equipment

1,388

Comparison toPrevious Forecast‐ 8.0%

Comparison toPrevious Forecast‐ 53.0%【Minus Factor】
・The sales of Printerswill be weak

126
100

【Minus Factor】
・ Antenna

320
1871261003201721874717247
Mar.2014 Mar.2015 Mar.2015
FY2014FY2015FY2015PreviousForecast

RevisedForecast

FY2014FY2015PreviousForecast

FY2015

Revised
Forecast

PreviousForecast

RevisedForecast

1414. Revised Forecast of Sales by Geography for FY2015
EuropeAmericas

1,766

1,794
1,541

（ 100 million yen ）Comparison toPrevious Forecast‐14.1%

Comparison toPrevious Forecast‐ 52.4%【Minus Factor】
・Severe price andshare competition
In LCD TVs market【Minus Factor】
・LCD TVs will beweak

61

2,170

2,200
1,8793617

FY2014FY2015

FY.2015

PreviousForecast

RevisedForecast

FY2014FY2015

FY2015PreviousForecast

Revised
Forecast

1,541

Comparison toPrevious Forecast‐ 8.5%

Comparison toPrevious Forecast‐70.5%【Minus Factor】
・LCD TVs and Printerswill be weak

2821322342313

8
FY2015

1,794

Japan

Asia & Others

FY2014

1,766

FY2015Previous Revised
Forecast Forecast

FY2014FY2015FY2015PreviousForecast

RevisedForecast【Minus Factor】
・Antenna

61213628

178322342313

FY2014FY2015PreviousForecast

FY2015
Revised
Forecast

15

Appendix
1. Quarterly Operating Summary of FY 2014 / 2015
2. Quarterly Changes of Sales Amount by Equipment
3. Quarterly Changes of Sales Amount by Geography16

1. Quarterly Operating Summary of FY2014 / 2015
（ 100 million yen ）FY2014FY2015

1Q

2Q

3Q

4Q

S a l e s430

728

577

435377491

Operating Income‐ 21340‐8‐ 43‐ 11( m a r g i n )( ‐ 4.9%)(4.7%)( 0.1%)(‐ 1.9%)( ‐ 11.4%)(‐2.3%)O rd i n a r y I n c o m e‐ 245215‐ 23‐ 37‐ 30

( m a r g i n )(‐5.7%)(7.1%)(2.6%)( ‐ 5.5%)( ‐ 9.9%)(‐6.1%)Net Income Attributableto owners of parent‐ 2349

13‐ 25‐ 40‐ 36( m a r g i n )( ‐ 5.4%)(6.7%)(2.3%)( ‐ 5.9%)( ‐ 10.7%)(‐7.5%)

101.87105.34116.04119.23121.72121.72

N e t

Average USD‐JPY
Exchange Rate

1Q

2Ｑ

17

2. Quarterly Changes of Sales Amount by Equipment
DVD Equipment

LCD TVs

OthersInformation Equipment（ 100 million yen ）

728
86

577
491

97

430

435

60

60

528

69

377
60

378
236

366

279
251

57

39

17

1377

75

85

83

1551

1Q

2Q

3Q

4Q

1Q

FY20141541
2Q

FY201518

3. Quarterly Changes of Sales Amount by Geography
Americas（ 100 million yen ）EuropeAsia & Others

Japan

728
577
491

430

435

614

377
478
410

338

336

291

17671

181214

690

582

41Q

2Q

3Q

FY2014793479

61
74

4Q

1Q

2Q

FY201519

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 Electric Co.,
Ltd. or the Funai Group, such as audio‐visual devices and information communicationequipment, the economic conditions of both domestic and international markets, andfluctuations in currency exchange rates. Actual performance may greatly differ fromprojections included in this document because of the impacts of uncertainty in suchareas 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.

20