Financial Results of FY2018

May 14, 2019FUNAI ELECTRIC CO.,LTD.
TSE68391

Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Summary of 4th Quarter (Jan.-Mar.)Summary of FY2018 (Apr.-Mar.) 1
Summary of FY2018 (Apr.-Mar.) 2
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Breakdown of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital, Depreciation, R&D Expenditures
Forecast FY2019
Forecast of Sales by Business21. Summary of 4 th Quarter (Jan.-Mar.)〈100 million yen〉

FY20174Q

FY20184Q

Net Sales

214245

Operating Income-50

11(-23.4%)(4.8%)-60

14(-28.3%)(6.1%)-92

19(-43.1%)(7.8%)

107.46110.27(Margin)

Ordinary Income(Margin)
Net Income Attributable toowners of parent(Margin)

Average USD-JPY Exchange Rate

Month End
USD-JPY
Exchange Rate

Dec.2017

Mar.2018

Dec.2018

Mar.2019

113.00106.24111.00110.99Difference(Y / Y)+31（+14.8%）＋61＋74＋1113

2. Summary of FY2018 (Apr.-Mar.) 1〈100 million yen〉

FY2017ActualFY2018
Forecast

FY2018Actual

1,301

1,050

1,055-10846(Margin)(-8.4%)(0.4%)(0.6%)

Ordinary Income-119413(Margin)(-9.2%)(0.4%)(1.3%)-247

1226(-19.0%)(1.1%)(2.5%)

110.69107.85111.06Net Sales
Operating Income

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

Mar.2018

Mar.2019

106.24110.99Difference(Y/Y)

VS Forecast-246+5(-18.9%)(100.5%)+114+2＋132+9+273+144

3. Summary of FY2018 (Apr.-Mar.) 2〈100 million yen〉

FY2017

Operating income
Non-operating income
Non-operating expenses（※1）

Ordinary Income
Extraordinary income
Extraordinary losses（※2）

Income before Income Taxes

Income taxes
Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)

FY2017
26＋1145
16

114+6-12-119

13＋132

2
126

220-124-243

13＋256

4-13-17-247

26＋273

FY201750FY2018

220-2-2-1
Interest Income-108(note:2 Extraordinary income and losses)

FY20184Difference(Y / Y)FY2018-12Interest

Foreign exchange

Paymentsgain and loss

OthersExtraordinary Income-126

Extraordinary Losses

54. Breakdown of Sales by Equipment
AV Equipment: Decreased due to the effect of distribution inventory adjustment in North America.

Info Equipment: Almost flat due to decreased inkjet printers and increased commercial inkcartridges.
〈100 million yen〉

1,301

Y/Y（Change）
AV Equip-255( -20.8%)

DVD Equip-54( -29.0%)

TV Equip-201( -19.4%)

Information Equip-0( -0.8%)

Others＋9(＋22.7%)

Total-246( -18.9%)

1,055

AV Equipment

1,226
DVD： 185
T V ：1,041

971
DVD：131
T V ：840

Sales Composition
OthersInformation

3% DVD
3%
14%

Others
5% DVD
Information
12%
3%

Information
Equipment
Others

33
42

33
51

FY2017FY2018FY2017TV

80%

FY2018

T V 80%65. Sales of DVD related Equipment
 Decreased,Decreased,demand
demandchanged
changedby
byrapid
rapidspreadspreadofofVideoVideostreaming
streamingservice
servicesuch
suchasasthe
theinternet
internetandandsalessalesofofnew
newproducts
productsinto
intothetheJapaneseJapanesemarket
marketwere
wereoneonemonthmonthbehindbehindlast
lastyear.
year.
〈100 million yen〉

185

BD Recorders

9513173
BD Players

Y/Y（Change）

55

BD Recorders-22( -22.6%)

BD Players-20( -36.3%)

DVD-15( -54.3%)

Others+3(+43.0%)

Total-54( -29.0%)

35DVD

28

Others713
10

FY2017FY20187

6. Sales of LCD related Equipment Decreased new sales of TV due to the continuance of the distribution inventory
adjustment phase of the North American market.
〈100 million yen〉

1,041
840

Y/Y（Change）
LCD TVLCD TV-201(-19.4%)

1,041840

FY2017FY201887. Sales of Information Equipment
 Almost flat , Sales of inkjet printers of unprofitable products were narrowed down,
but sales increased due to sales of label printers, nail art printers and increased salesof commercial ink cartridges.

33
Inkjet printers
Label printers81〈100 million yen〉

33
6

Nail Art PrinterInk-cartridges

24

FY2017

Y/Y（Change）

126

Inkjet printers-8( -94.3%)

Label printers+5(＋556.1%)

Nail Art Printer＋1(Ink-cartridges+2( ＋5.7%)

合計

-0(-)

-0.8%)FY201898. Geographic Breakdown of Sales Americas: Overall North American markets were in excess inventory. Therefore sales
of LCD TVs declined due to sluggish growth in our new sales.
Y/Y（Change）〈100 million yen〉

1,301
1,055

Americas943

Americas-244( -25.9%)

Europe-1( -27.0%)

Asia & Others-1( -5.0%)Japan+0( +0.1%)

Total-246( -18.9%)

699
Sales Composition
EuropeAsia &OthersJapan

514413339

339

Japan

Japan

26%

Asia &Others

32%

1%

FY2017FY2018FY2018FY2017
Americas73%

Asia &Others
2%

Americas66%109. Operating Income Analysis (Y/Y)

〈100 million yen〉

Y / Y (Change)
FY2017FY2018Operationg
Income6
Decrease ofGeneral
Expenses

OperatingLoss+44-108

Decrease of
Add-value

+77
Sales
Decrease-711

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

Accounts
Receivables
Inventories
Fixed Assets
and Others
Trade Payables
Accounts Payables
and Others

Liabilities
AndNet Assets

+30

802

825

832

・Cash / Deposit+31323334

354

・Accounts Receivables

-22

99
236

102
238

77
252

・Inventories

+16

144
118
177

151
157
149

149
156
136

507

519

540

Cash / Deposit

AssetsAssetsNet Assets

802Mar. 2018825

Dec. 2018

832

・Fixed Assets andOthers+5Liabilities-3・Trade Payables+38

・Accounts Payables
and Others-41

Net Assets+33（Equity Ratio

64.9%）

Dec. 201912

11. Inventories Trends
Y / Y (Change)

Finished products：+ 3Work in process： + 13〈100 million yen〉

<Inventories Turnover period in months>

4.1
2.6

442

262
Finished products

215

2.6

3.3

253

154
199

108
Jun.2017

3.1

2.1

3.1

319

185

Mar.2017

3.1

452

236

227
Work in process

3.4

Sep.2017

134

Dec.2017

221

256
112

132

118

104

103

Mar.2018

Jun.2018

144

Sep.2018

238
141

252
135

97

117

Dec.2018

Mar.2019

13

12. Capital Expenditures, Depreciation Expense and R&D Expenditures〈100 million yen〉

CapitalR&D

Depreciation【Fy2017 vs FY2018】- 7【Fy2017 vs FY2018】- 8【Fy2017 vs FY2018】- 7（Sales Ratio）

7.0%
5.3%

4.8%

736221FY201719

FY2018
Forecast

14FY2018

5517

FY201779FY2018

FY2018

Forecast

FY2017FY2018FY2018

Forecast

1413. Forecast FY2019〈100 million yen〉

FY2018 Actual
1 half

2 halfChange (Y/Y)

FY2019 Forecast

Full year

1 half

2 halfFull year

1 half

2 halfFull year-28+25467588 1,055

520

560 1,080 +53

OperatingIncome-16226-12164(Margin)(-3.5%)(4.0%)(0.6%)(-2.3%)(2.9%)(0.4%)

Ordinary
Income-21513-1214(Margin)(-0.4%)(2.7%)(1.3%)(-2.3%)(2.5%)Net Income
Attributableto ownersof parent

620

26-1213(Margin)(1.4%)(3.3%)(2.5%)(-2.3%)(2.3%)(0.1%)

110.70111.42111.06110.00108.00109.00Net Sales

Average USD-JPY
Exchange Rate ）(+2.4%)+4-6-2

2 -10-1-11-7-25(0.2%)

1 -18

15

14. Forecast of Sales by Business
DVD/BDLCD TVs【FY2017 vs FY2018】-8.4％【FY2017 vs FY2018】+2.4％〈100 million yen〉

1,301185

1,055185

1,041

FY2017131120FY2018FY2019Forecast

FY2017840860

FY2018FY2019Forecast

InformationOthers【 FY2017 vs FY2018 】 +81.8％【 FY2017 vs FY2018 】 -21.6％6033

FY20171311,080
1201,041840860

51424033

FY2018FY2019Forecast

FY2017FY2018FY2019Forecast

334233516040

FY2017FY2018FY2019Forecast

16

Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography17

1. Quarterly Financial Summary of FY 2017 - 2018〈100 million yen〉

FY2017

Net Sales
Operating
IncomeFY2018

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

320

401366214216251343245- 23- 17- 18

- 50

- 12

-41111(-7.3%)(-4.3%)(-5.0%)(-23.4%)(-5.7%)(-1.6%)(3.4%)(4.8%)

- 21

- 14

- 22

- 60

-97+014(-6.7%)(-3.7%)(-6.1%)(- 28.3%)(-4.2%)(2.9%)(0.2%)(6.1%)

- 15

115

- 24

- 92

-06+019( Margin )(-4.7%)(-28.9%)(-6.6%)(-43.1%)(-0.1%)(2.7%)(0.2%)(7.8%)

Average USD-JPY
Exchange Rate

111.41111.16112.73107.46109.53111.88112.57110.27( Margin )Ordinary
Income( Margin )Net Income
Attributableto owners ofparent18

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others〈100 million yen〉

401
51

320

366

343

51

3650

328
299

256

214

216

33

35

251

245

30

30
289

158

154

201

196

7
71210

7
97
16

10
17911

7
11

7
12

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2017FY201819

3. Quarterly Sales Trends by Geography
Americas

EuropeAsia & OthersJapan〈100 million yen〉

401366343

320304219

251277214

216245243

163

143
111499

2292

85

1Q

2Q

3Q
FY2017

153

140

12

11111763

1
966

85

98

90

4Q

1Q

2Q

3Q

4Q

FY201820

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.

21