From April 1, 2009
To March 31, 2010

BRIEF SETTLEMENT OF ACCOUNTS FOR THE FISCAL YEAR ENDED MARCH 31, 2010
May 10, 2010
Corporate Resolution

1. Summary of Operating Results (Consolidated)(Million yen)

Fiscal Year 2008

Fiscal Year 2009

From April 1, 2008
to March 31, 2009

From April 1, 2009
to March 31, 2010

AmountAmount%%%Net Sales

Rate ofincrease or
decrease%%

302.777100.0

314,911

100.0

4.0

Operating Income

1,409

0.5

11,1483.5

690.9

Ordinary Income

1,226

0.4

11,6843.7

852.9△ 17,364△ 5.7

10,328

3.3−

Net Income/Loss after Tax
Net Income/Loss per Share△ 509.33

302.97

Notes: Includes 14 consolidated subsidiaries, 1 non-consolidated subsidiary accounted for by the equity method
and 1affiliated company accounted for by the equity method.

2. Summary of Operating Results (Non-Consolidated)(Million yen)

Fiscal Year 2008

Fiscal Year 2009

From April 1, 2008
to March 31, 2009

From April 1, 2009
to March 31, 2010

AmountAmount%Rate ofincrease or
decrease

%

%

%

%

Net Sales

203,890

100.0

253,511

100.0

24.3

Operating Income/Loss△1,625

△0.8

△339

△0.1

−

Ordinary Income/Loss

10,997

5.4

△445

△0.2

−

△ 8,693△4.3△ 1,106△0.4−

Net Income/Loss after Tax
Net Income/Loss per Share△ 254.98△ 32.45

Member, Financial Accounting Standards Foundation

Financial Report for the 12-Month Period ended March 31, 2010
May 10, 2010

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Section(URL http://www.funai.jp/ )Representative: President and CEO
Tomonori Hayashi
Inquiries: General Manager,Business Finance HQ
Hisao Fuke
TEL: (072) 870-4395
Scheduled date of Annual General Shareholders Meeting; June 22, 2010
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; June 22, 2010
Scheduled date of Commencement of Annual Dividend Payment; June 11, 2010
1. Summary of Consolidated Results for the Fiscal Year ended March 2010 (April 1, 2009 – March 31, 2010)(1) Operating Results (Consolidated)(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Fiscal Year 2009
Fiscal Year 2008

Million yen%

Million yen

314,911
302,777

4.0
9.2

11,148
1,409

%

690.9
−

Million yen

11,684
1,226

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted BasisNet Income to
Shareholders’Equity

Yen

Yen

%

%

852.9
−

Million yen%

10,328△17,364−−

Ordinary Income Operating Income
to Total Assets
to Net Sales%

302.97300.777.5△ 509.33−△ 11.9(Reference) Investment profit or loss recognized on equity basis
Fiscal Year ended March 31, 2010 △ 33 million yen
Fiscal Year ended March 31, 2009 △171 million yen

%

5.8
0.6

3.5
0.5

Shareholders’Equity Ratio

Net Assets
Per Share

Fiscal Year 2009
Fiscal Year 2008

(2) Consolidated Financial Position
Total Assets
Million yen

204,057
199,882

Fiscal Year 2009
Fiscal Year 2008
(Reference)

Net Assets
Million yen

142,779
135,596

%

Yen

69.6
67.6

4,164.86
3,963.72

Cash Flows
Provided by
Financing Activities

Outstanding Amountof Cash and Cash
Equivalents at theEnd of Period

Shareholders’ Equity

Fiscal Year ended March 31, 2010
Fiscal Year ended March 31, 2009

141,991 million yen
135,134 million yen(3) Consolidated Cash Flows
Cash Flows Provided
by Operating
Activities
Million yen

Fiscal Year 2009
Fiscal Year 2008

3,640
△ 728

Cash Flows Used in
Investing Activities
Million yen△2,713△10,795

Million yen△ 7,870△ 2,563

Million yen

34,06340,1802. Dividends
Dividend per Share

Corresponding
Date

1Q End2Q Endyen

3Q Endyen

Year-Endyen

Annual

Total
Dividend
Payment

Dividend to Net
Assets（Consolidated） (Consolidated）

%

yen

yen

Million yen

1,363
1,363

Fiscal Year 2008
Fiscal Year 2009

−
−

0.00
0.00

−
−

40.00
40.00

40.00
40.00

Fiscal Year 2010
(Projection)

−

0.00

−

40.00

40.00

Pay-out Ratio

%

−

0.9
1.0

13.2
13.6

3 Forecast of Consolidated Results for the Fiscal Year ending March 2011 (April 1, 2010 - March 31, 2011)(% denotes year on year)

Net Sales
Million yen
Six months ending Sep.30.2010

Full Year

170,000
350,000

Operating Income Ordinary Income
%

1.7
11.1

Million yen%

7,200 △28.5
13,000
16.6

Million yen%

Net Income
Million yen

Net Income
Per Share%

Yen

7,000 △27.0 5,600 △23.4
12,90010.4 10,000 △3.2

164.26293.324 Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results
1 Changes arising from revision of accounting standards: Yes,○
a P&F Mexicana, S.A.D.E.C.V (a sales subsidiary) is added to consolidated subsidiaries.
○
b B.W. Highsonic Industrial Ltd.(a joint venture for plastic molding) took majority stake, as a result, is○deleted from affiliated companies accounted for by the equity method and added to a non-consolidated
subsidiary accounted for by the equity method.
2 Changes arising from other factors: No○(3) Number of Shares Outstanding (Ordinary Shares)
1 Number of shares outstanding (including treasury stock) as of March 31, 2010; 36,104,196shares○
as of March 31, 2009; 36,104,196shares
2 Number of shares of treasury stock as of March 31, 2010; 2,011,531shares○
as of March 31, 2009; 2,011,321shares

(Reference)
1. Summary of Non-consolidated Results for the Fiscal Year ended March 2010 (April 1, 2009– March 31, 2010)(1) Operating Results (Non-consolidated)
Net Sales
Million yen

Fiscal Year 2009
Fiscal Year 2008(% denotes year on year)

Operating Income

Ordinary Income

Million yen%

Million yen△339△1,625−−%

253,511
203,890

24.3
△8.6

−
△43.5

Million yen%△1,106△8,693−−Net Income
Per Shareon a Fully
Diluted BasisNet Income
Per Share
Yen

Fiscal Year 2009
Fiscal Year 2008

△445
10,997Net Income%△32.45△254.98

Yen−−(2) Financial Position(Non-consolidated)
Total Assets
Million yen

Fiscal Year 2009
Fiscal Year 2008
(Reference)

107,399
108,545

Net Assets

Shareholders’Equity Ratio

Million yen

71,75973,645Net Assets
Per Share
%

66.8
67.8

Yen

2,103.00
2,159.63

Shareholders’ Equity

Fiscal Year ended March 31, 2010
Fiscal Year ended March 31, 2009

71,696 million yen
73,628million yen

Note:
This document contains forward-looking statements and projections regarding business performance which are
not historical facts. Please note that these statements are based on the current expectations, assumptions, estimatesand projections of the Funai Group in light of the information currently available to it. Actual performance may
materially differ from projections included in this document because of the impacts of uncertainty in various
factors. For the assumptions and other related matters concerning consolidated results forecast, please refer to“(1)Analysis of Business Performance”of “1 Business Performance.”

1. Business Performance(1) Analysis of Business Performance① Summary of the consolidated fiscal year under review(Market environment)
During the current period the economy of the United States, the prime market for the Funai Group, remained clouded
by uncertainty originating in factors such as the job market and the residential housing market. Nevertheless, as aresult of large-scale policy support signs of improvement were evident after the start of the year 2010 in certain
economic indicators, including capital investment and personal consumption, and concerns the economy would
deteriorate further were nearly dispelled and in general the first buds of a business recovery are likely to be emerging.
For the consumer electronics appliances industry, demand expanded briskly not only in Japan, the U.S. and Europe,
which are already existing key markets for LCD televisions, one of the Funai Group’s leading products, but in the
China market as well, where economic growth is remarkable. On the other hand, there were no changes in theconditions that have resulted in declining sales prices and high prices for LCD panels, a primary component. LCD
televisions that utilize LED backlight panels and support 3D (three dimensional images) are expected to be introduced
to the market and spread rapidly in the future.
(Net sales)
Under these conditions, net sales for the Funai Group for the consolidated fiscal year increased 4.0% from theprevious consolidated fiscal year to JPY314,911 million.
Each of the businesses of the Funai Group is centered on the manufacture and sale of electronic equipment anddevices. The Company does not classify its products into business segments, but a breakdown of net sales by type ofdevice is provided below.
(a) Audio-visual equipment
In the audio-visual equipment category, the Company expanded sales of LCD televisions mainly in the North
American market, despite the ongoing decline in market prices because of increasingly severe competition and thefreeze in consumer spending. In DVD-related products, sales of Blu-ray disc-related products rose because of the
anticipated future growth of Blu-ray disc players, but total sales fell year-on-year because the Company sold fewer
television set-top boxes* for the U.S. market after ending production in June 2009. As a result, net sales of theseproducts rose 1.3% compared with the previous consolidated fiscal year to JPY233,528 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 was ended inJune 2009.
(b) Information equipment
Net sales of information equipment increased 21.4% year-on-year to JPY54,629 million. Sales of digital stillcameras were not posted as orders from OEM partners stopped, but net sales of printers were higher because of anincrease in orders from OEM partners.
(c) Other
Net sales of other electronic devices slipped 1.5% compared with the previous consolidated fiscal year to
JPY26,754 million.
(Earnings)
Operating income increased 690.9% compared with the previous consolidated fiscal year to JPY11,148 million,
reflecting factors such as higher sales of LCD televisions in the North American market, and ordinary income rose
852.9% year-on-year to JPY11,684 million as a result of improvements in non-operating income and expenses. Net
income for the consolidated fiscal year under review was JPY10,328 million, compared with a net loss of JPY17,364
million in the previous consolidated fiscal year that resulted from reporting “income taxes for prior periods” and otheritems.
② Outlook for the next consolidated fiscal year
During the next consolidated fiscal year, the Funai Group will continue working to improve operating results byconcentrating on increasing sales of growth products such as LCD televisions and Blu-ray Disc-related products. The
Company will also pursue greater efficiency and profitability improvements through measures that include further
promotion of the FPS (Funai Production System), thorough cost reductions based on a review of fixed and variable
costs, applications of IT to various processes and operating improvements.
The outlook for the next consolidated fiscal year is provided below.
< Consolidated operating results >Net sales
Operating income
Ordinary income
Net income

JPY 350,000 million
13,000 million
12,900 million
10,000 million(11.1% increase year-on-year)(16.6% increase year-on-year)(10.4% increase year-on-year)( 3.2% decrease year-on-year)

For its earnings estimates, the Company has assumed an exchange rate of JPY90 = US$1.00. The operating results
outlook is a forward-looking statement about the future performance of the Company and is based on management’s
assumptions and beliefs in light of information currently available, and involves known and unknown risks anduncertainties. Various factors such as changes in economic conditions overseas, especially in the main U.S. market,
and severe price fluctuations may cause actual events and results to differ materially from those anticipated in thesestatements.

(2) Analysis of Financial Position
With regard to consolidated cash flow for the consolidated fiscal year under review, net cash earned in operating
activities was JPY3,640 million. Net cash used in investing activities was JPY2,713 million. Net cash used infinancing activities was JPY7,870 million. The balance of cash and cash equivalents at end of the consolidated fiscal
year under review was JPY34,063million.
The cash flow indicator trends for the Funai Group are provided below.

Shareholders’ equity ratio
Shareholders’ equity ratio on
a market capitalization basis
Ratio of cash flow tointerest-bearing debt
Interest coverage ratio

FY ended
March 2006
68.6

FY ended
March 2007
68.5

FY ended
March 2008
70.3

FY ended
March 2009
67.6

FY ended
March 2010
69.6

138.8

140.6

52.1

49.1

65.8

一

0.3

一

一

1.9

一

38.7

一

一

43.7

Shareholders’ equity ratio: Equity capital/total assets
Shareholders’ equity ratio on a market capitalization basis: Total market capitalization/Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments* All indicators are calculated using financial values on a consolidated basis.
* Total market capitalization is calculated by multiplying the closing share price at the end of the consolidated fiscal
year by the number of shares outstanding (after deducting treasury stock) at the end of the consolidated fiscal year.
* Cash flow from operating activities shown on the Consolidated Statements of Cash Flows is used as operating cash
flow. Interest-bearing liabilities include all liabilities on which the Company pays interest that are accounted for on
the Consolidated Balance Sheets. The amounts shown as interest expense on the Consolidated Statements of Cash
Flows are used as interest payments.
* The ratio of cash flow to interest-bearing debt and the interest coverage ratio for the fiscal years ended March 2006,
March 2008 and March 2009 have been omitted because cash flow from operating activities was negative.
(3) Basic Policy Concerning Distribution of Earnings and Dividends for the Consolidated Fiscal Year under Review
and Next Fiscal Year
With regard to the distribution of earnings, the Company recognizes the return of earnings to shareholders is an
important management issue, and considers the maintenance of stable dividends while taking steps to strengthen the
Company’s management base to be a fundamental policy. The Company implements a positive dividend policy,
which takes into consideration factors such as the operating environment, based on a dividend ratio of 1.0% ofconsolidated net assets as a specific standard.
Based on the policy indicated above, for the fiscal year under review the Company plans to pay a year-end dividendof JPY40 per share. The Company also projects a dividend of JPY40 per share in the next consolidated fiscal year.
The Company plans to implement dividend payments as a year-end dividend (once a year).
(4) Business and Other Risks
The Company has omitted disclosure of business and other risks because there are no material changes from theinformation described in the most recent financial statements (submitted on June 19, 2009).

2. Current Conditions of the Company’s GroupThe Company has omitted disclosure of this item because there are no material changes from the information reported
in “Diagram of Operating Business Relationships (Business Contents)” and “Affiliated Companies” in the most recent
financial statements (submitted on June 19, 2009).

3. Management Policies(1) Basic Management Policy of the Company
As its basic management policy, Funai Electric Co., Ltd. will pursue its business activities by building strong trustand seeking the mutual prosperity of all parties related to the Company as its basic policy, by creating the mostefficient development, manufacturing and sales organization possible and stably supplying high quality and fairly
priced products to global markets, based on a corporate creed of continual product improvements, promotion ofdeeper trust and further harmony and mutual prosperity.

(2) Management Indicators Established as Objectives
As a management indicator for the Funai Group, the Company places the greatest emphasis on operating income

margin, and will seek to achieve an operating income margin of at least 5% at all companies over the medium term.
(3) Medium to Long-term Management Strategy and Issues to be addressed
In the consumer electronics appliances industry, the development of products to stimulate new consumer needs
through the collaboration of IT and the contents industry and combinations of hardware and software is advancing
rapidly. Funai Electric Co., Ltd. must respond to this new competitive era as well, through the development of new
products and the addition of speed to the “affordable prices,” “lean business structure” and “FPS (Funai Production
System)” that are the Company’s unique strong points.
Given this environment, the issues for increasing the corporate value of the Funai Group, and the Company’s
responses during the consolidated accounting fiscal year under review, are described below.
① Expansion of net sales and improvement of earnings
The Funai Group has positioned the increase of net sales and improvement of earnings as its highest priority issue.
(Product strategy)
In the audio-visual equipment category, during the consolidated fiscal year under review LCD televisions
benefitted from the effect of higher sales centered on the North America market and generated positive operating
income after incurring losses in the previous period. Nevertheless, the Funai Group must proceed without delay todevelop and introduce to the market LCD television products that utilize LED backlight panels and that are capableof supporting 3D, and use of the Internet, which are expected to spread rapidly in the future. In addition, in Blu-ray
Disc-related products, during the fiscal year under review the Company launched players and recorders that arecapable of supporting the Internet, and will seek to expand sales by further broadening this product lineup withproducts such as players that support 3D and portable players.
In information equipment as well, the Company will strive to increase sales by supplying OEM partners withhigher added value products that take maximum advantage of the mechatronics base that is the Company’s area ofexpertise, in addition to its existing products.
(Market strategy)
Together with achieving sales growth by expanding sales in the Europe and Japan markets and entry into newly
developing country markets such as BRICs, the Company also considers measures to mitigate the effects fromoveremphasis on the Company’s largest market in the U.S., soften the impact of the January and February slow
season and smooth out production and sales over the course of the year to be key issues.
In June 2010 the Company will establish a manufacturing subsidiary in Guangdong Province, and plans to
introduce LCD televisions to the China market.
(Sales channel strategy)
The Funai Group must respond sufficiently to customer satisfaction levels by achieving closer communications
than it has in the past and swiftly and accurately taking into consideration market trends, not only with major
existing customers but with new customers as well. The Company also is preparing to launch new marketing inNorth America using the Internet, where it plans to broaden its customer coverage.
(Branding strategy)
In the audio-visual equipment category, the Company must direct closer attention to the positioning of the Sylvania,
Emerson, Philips and Magnavox brands, its four brands in the North America market, and the Funai brand inEurope, based on existing, comparatively superior products as well as new product development. Brand
positioning in the Japanese market, where the Company plans to increase sales, and in the China market, which theCompany will newly enter, will also become critical issues in the future.
② Timely supply of products based on accurate responses to market needs
To achieve both “viable products” and “affordable prices,” the Funai Group must pursue further reductions to the
speed and cost at which it completes the cycle from product planning to development, materials and parts
purchasing, manufacturing and sales, by maintaining closer interaction with customers and minimizing time lags ineach operating division through more effective applications of IT. Based on this approach, the Company will
supply on a timely basis products that accurately meet market needs.
③ Training and appointment of human resources
The Company recognizes that improving each employee’s capabilities and being able to link this to bolstering thestrength of the Funai Group will be critical for ensuring the Funai Group stays in the lead in the new era of global
competition and implementing the Group’s medium to long-term business strategy. Therefore the Company’s
policy is to actively train and assign employees, without regard to whether they are younger employees or
mid-career staff, by strengthening and expanding its internal or external training systems.

4. Consolidated Financial Statements(1).Consolidated Balance Sheets(Mil. Yen)
Fiscal year 2008
(As of March 31, 2009)

Fiscal year 2009
(As of March 31, 2010)ASSETS;
Current Assets
Cash and deposits

96,50386,045

Notes and accounts receivable-trade

28,84435,154Merchandise and finished goods

20,92520,850Work in process

1,635

1,510

Raw materials and supplies

8,116

16,057

Deferred tax assets

2,763

4,131

Accrued refunded Income taxes

1,350

-

Other

3,843

3,586

Allowance for doubtful accounts

△ 273

△ 179

Total current assets

163,709

167,155

13,37013,910Depreciation and amortization△ 7,505△ 7,781

Buildings and structures (net)

5,864

6,129

Machinery,equipment and motor vehicles

21,192

20,490△ 19,301△ 19,127

Machinery,equipment and motor vehicles (net)

1,891

1,363

Tools,furniture and fixtures

34,05635,027

Depreciation and amortization△ 31,731△ 32,483

Tools,furniture and fixtures (net)

2,324

2,543

Lands

5,193

5,180

294

537

△ 27

△ 125

Lease assets (net)

266

411

Other

483

24

16,025

15,654

Patent right

4,328

3,665

Other

1,319

1,208

Total intangible fixed assets

5,647

4,874

Noncurrent assets
Tangible fixed assets
Buildings and structures

Depreciation and amortization

Lease assets
Depreciation and amortization

Total tangible fixed assets

Intangible assets

(Mil. Yen)
Fiscal year 2008
(As of March 31, 2009)

Fiscal year 2009
(As of March 31, 2010)

Investment and other assets
Investment securities

5,820

6,134

431

-

Deferred tax assets

4,329

4,803

Other

5,480

6,210

Allowance for doubtful accounts△ 1,561△ 775

Total investments and other assets

14,49916,37336,17336,902

199,882

204,057

Notes and accounts payable-trade28,15731,305

Short-term loans payable

12,938

6,338

Accounts payables

12,13011,035

92

162

1,623

1,799

1

1

302

400

Reserve for products guarantee

2,191

1,899

Other

2,943

3,266

Total current liabilities

60,38256,208Long-term loans payables

666

566

lease liabilities

278

387

Deferred tax liabilities

26

21

Revalued deferred tax liabilities

291

285

Reserve for retirement benefits

1,316

1,386

Allowance for officers' retirement gratuities

1,026

1,042

298

1,379

3,904

5,069

64,286

61,277Long-term loans receivable

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

lease liabilities
Income taxes payable
Deferred tax liabilities
Allowance for bonus

Noncurrent liabilities

Other
Total noncurrent liabilities
TOTAL LIABILITIES(Mil. Yen)
Fiscal year 2008
(As of March 31, 2009)

Fiscal year 2009
(As of March 31, 2010)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

110,047

119,272

Treasury stock△ 24,340△ 24,340

150,233

159,457△ 98

470

Foreign currency translation adjestment△ 14,999△ 17,936

Total valuation and translation adjestments△ 15,098△ 17,465

Subscription right to shares

17

62

Minority interests

443

726

135,596

142,779

199,882

204,057

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

Total net asset
TOTAL LIABILITIES AND NET ASSETS

(2).Consolidated Statements of Income(Mil. Yen)
Ｆiscal year 2008

Fiscal year 2009

( from April 1, 2008
to March 31, 2009 )302,777( from April 1, 2009
to March 31, 2010 )
314,911

Cost of sales

258,303257,442

Gross profit

44,473

57,469Selling, general and administrative expenses

43,064

46,321

Operating income/loss(△）

1,409

11,148Interest income

3,380

655

Dividends income

58

34

Net sales

Non-operating income

Other
Total non-operating income

454

401

3,892

1,091

351

83

Non-operating expenses
Interest expenses
Equity in losses of affiliates

171

33

2,892

103

Loss on investments in partnership

419

204

Commitment fee for syndicated loan-

71

Foreign exchange loss

Other
Total non-operating expenses
Ordinary income/loss(△）

241

58

4,076

555

1,226

11,684Extraordinary income
Gain on prior period adjustment

357-

Gain on sales of noncurrent assets

61

Profit on Sales of Investment Securities
Allowance for Liquidation Loss on
Affiliated Company Transfer
Other

26

97

91

-

11

6

Total extraordinary income

494

105

94

95

Extraordinary loss
Loss on disposal of noncurrent assets
Special sales promotion

850-

Estimated loss in value of securities

3,087

-

Liquidation loss on affiliated company
Loss incurred though bad debt

644

-

-

105

Loss on impairment-

64

Import customs duties in previous years

-

575

Other

306

71

Total extraordinary loss

4,983

911

Income before income taxes△ 3,263

10,877

1,948

2,520

△ 1,335-

16,838-△ 3,560△ 2,205

13,891

314

Income taxes
Refund of income taxes
Income taxes for prior periods
Income Tax Adjustments
Total income taxes
Minority interests in income
Net income

210

234

△ 17,364

10,328

(3).Consolidated Statements of Changes in Shareholders' Equity(Mil. Yen)
Fiscal year 2008

Fiscal year 2009

( from April 1, 2008
to March 31, 2009 )( from April 1, 2009
to March 31, 2010 )Shareholders' equity
Capital stock
Balance at the end of previous period

31,28031,280--31,28031,28033,24533,245

Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period--

33,24533,245

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

129,812110,047△ 695-

Dividends from surplus△ 1,704△ 1,363

Net profit or net loss (△）
Increase due to merger of a non-consolidated subsidiary by aconsolidated subsidiary
Total changes of items during the period△ 17,364

10,328-259

Balance at the end of current period
Retained earnings△ 19,069

9,224

110,047

119,272△ 24,339△ 24,340

Purchase of treasury stock△0△0

Total changes of items during the period△0△0△ 24,340△ 24,340

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

169,998

150,233△ 695-

Dividends from surplus△ 1,704△ 1,363△ 17,364

10,328

△0

△0

-

259

△ 19,069

9,223

150,233

159,457

Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total shareholders' equity

Net loss
Purchase of treasury stock
Increase due to merger of a non-consolidated subsidiary by aconsolidated subsidiary
Total changes of items during the period
Balance at the end of current period

(Mil. Yen)
Fiscal year 2008

Fiscal year 2009

( from April 1, 2008
to March 31, 2009 )( from April 1, 2009
to March 31, 2010 )Valuation and translation adjustments
Valuation difference on available-for-sale securities
△ 63

△ 98

Net changes of items other than shareholders' equity

△ 35

569

Total changes of items during the period

△ 35

569

Balance at the end of current period

△ 98

470

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period△ 12,063△ 14,999

122-

Net changes of items other than shareholders' equity△ 3,058△ 2,937

Balance at the end of previous period
Changes of items during the period

Foreign currency translation adjustment

Total changes of items during the period△ 3,058△ 2,937

Balance at the end of current period
Total valuation and translation adjustments△ 14,999△ 17,936

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period△ 12,127△ 15,098

122-

Net changes of items other than shareholders' equity△ 3,093△ 2,367

Total changes of items during the period△ 3,093△ 2,367

Balance at the end of current period
Subscription rights to shares△ 15,098△ 17,465

Balance at the end of previous period-

17

Net changes of items other than shareholders' equity

17

44

Total changes of items during the period

Changes of items during the period
1744Balance at the end of current period
Minority interests

17

62

Balance at the end of previous period

485

443

Net changes of items other than shareholders' equity

△ 41

282

Total changes of items during the period

△ 41

282

443

726

158,356

135,596△ 573-

Dividends from surplus△ 1,704△ 1,363

Net loss△ 17,364

10,328

△0

△0

-

259

△ 3,117△ 2,040

Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Purchase of treasury stock
Increase due to merger of a non-consolidated subsidiary by aconsolidated subsidiary
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period△ 22,187

7,183

135,596

142,779

(4).Consolidated quartely statements of cash flows(Mil. Yen)
Fiscal year 2008

Fiscal year 2009

( from April 1, 2008
to March 31, 2009 )( from April 1, 2009
to March 31, 2010 )Net cash provided by (used in) operating activities△ 3,263

10,877

4,929

5,756

-

64

Increase(decrease) in allowance for doubtful accounts

632

△ 877

Increase(decrease)in provision for retirement benefits

△ 147

42

△ 3,438△ 689

Interest expenses

351

83

Equity in (earnings) losses of affiliates

171

33

Loss (gain) on sales of property, plant and equipment△50

Loss (gain) on sales of investment securities

△ 26

△ 87

Loss (gain) on valuation of investment securities

3,087

10

Loss on liquidation of subsidiaries and affiliates

644

14

△ 3,892△ 7,102

Decrease (increase) in inventories

2,819△ 8,587

Increase (decrease) in notes and accounts payable-trade

6,181

5,307

Other, net

10,975△ 1,529

Subtotal

19,0193,318Interest and dividends income received

2,489

1,167

Interest expenses paid

△ 346

△ 83

△ 5,053△ 2,265

Income taxes refund

-

1,504

Prior year's taxes paid

△ 16,838

-

△ 728

3,640

△ 80,480△ 98,887

33,991

100,157△ 4,751△ 3,546721

8

Purchase of intangible assets

△ 758

△ 790

Purchase of investment securities

△ 750

△ 438

Proceeds from sales of investment securities

1,147

540

Payment of partial purchase of shares of consolidated subsidiaries

△ 71

△ 18

Payments for loan receivables

△ 105

△ 16

Collection of loan receivables

40,151

92

111

186

△ 10,795△ 2,713

Income before income taxes and minority interests
Depreciation and amortization
Loss on impairment

Interest and dividends income

Decrease (increase) in notes and accounts receivable-trade

Income taxes paid

Net cash provided by (used in) operating activities
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

Other, net
Net cash provided by (used in) investment activities

(Mil. Yen)
Fiscal year 2008

Fiscal year 2009

( from April 1, 2008
to March 31, 2009 )( from April 1, 2009
to March 31, 2010 )Net cash provided by (used in) financing activities△ 170△ 6,279△ 1,419

△ 699

△0

△0

△ 1,704△ 1,363731

473

Net cash provided by (used in) financing activities△ 2,563△ 7,870

Effect of exchange rate change on cash and cash equivalents△ 2,832459

Net increase (decrease) in cash and cash equivalents△ 16,919△ 6,484

Cash and cash equivalents at beginning of period

57,10040,180-367

40,18034,063

Net increase (△decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of fractional shares
Cash dividends paid
Other, net

Net increase in cash and cash equivalents due to merger
Cash and cash equivalents at end of period

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
Fiscal year 2008 (April 1, 2008 - March 31, 2009)
Japan

N. America(1) Sales to outside customers

103,933

182,990(2) Inter-segment sales

120,412

Total
Operating Expenses(Units: Million Yen)
Asia

Elimination Consolidated

EuropeTotal

768

15,084

302,777−

39

166,48112

286,946(286,946)−

224,346

183,029

167,250

15,097589,723(286,946)

302,777

223,295

180,845

165,800

17,630587,572(286,204)

301,367

1,050

2,184

1,449

△2,532

2,151

(741)

1,409

108,739

40,49592,998

11,163

253,396(53,513)

199,882

ⅠSales&operating profit/loss

Net Sales

Operating

IncomeandLosses(△)ⅡAssets

Fiscal year 2009 (April 1, 2009 - March 31, 2010)

302,777(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America(1) Sales to outside customers

114,179

191,855

1,048

7,828

314,911−(2) Inter-segment sales sales

163,001

29

183,8123

346,847(346,847)

−

Total

277,181

191,885

184,861

7,831

661,759(346,847)

314,911

Operating Expenses

272,770

188,238

178,873

9,035

648,918(345,154)

303,763

4,411

3,646

5,988

△1,204

12,840(1,692)

11,148120,424

35,735

102,8139,966

268,939(64,882)

204,057

ⅠSales&operating profit/loss

Net Sales

OperatingLosses(△)ⅡAssets(Note)

Incomeand

1. Country and area classifications are determined by geographical proximity.
2. Primary countries and areas falling under classifications other than Japan are as follow:(1) North America・・・・United States of America, Mexico(2) Asia・・・・Hong Kong, Malaysia, Thailand(3) Europe・・・・Germany, Poland

314,911c;Overseas sales
Fiscal year 2008 (April 1, 2008 - March 31, 2009)(Units:Million Yen)

N. America
ⅠOverseas sales

216,150

Asia

Europe6,879

36,372

Other
6,312

ⅡConsolidated sales

Total
265,714302,777

ⅢRatio of overseas sales to consolidated sales

71.4

(%)

2.3

12.0

Fiscal year 2009 (April 1, 2009 - March 31, 2010)

87.8(Units:Million Yen)

N. America
ⅠOverseas sales

2.1

216,454

Asia

Europe8,822

30,490

Other

Total

10,765266,531

ⅡConsolidated sales

314,911

ⅢRatio of overseas sales to consolidated sales

68.7

(%)

(Note)

2.8

9.7

3.4

84.6

1. Country and area classifications are determined by geographical proximity.
2. Primary countries and areas falling under classifications other than Japan are as follow:(1) North America・・・・United States of America, Canada(2) Asia・・・・Hong Kong, Singapore(3) Europe・・・・Germany, England, France(4)Other・・・・Mexico, Brazil
3. Overseas sales stand for aggregate sales amount of outside Japan by the parent and the consolidated
subsidiaries.

6. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Fiscal year 2008

Fiscal year 2009

From April 1, 2008

From April 1, 2009

To March 31, 2009

To March 31, 2010

AmountPercent

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

Percent％％

Audiovisual Equipment

230,600

76.1

233,528

74.2

1.3

Information Equipment

45,005

14.9

54,62917.3

21.4

Other Equipment

27,1719.0

26,7548.5△1.5

302,777100.0

314,911

100.0

4.0

％

％

Total

％
Japan

By Region

37,063

12.2

48,38015.4

30.5

N. America

216,150

71.4

216,45468.7

0.1

Europe36,37212.0

30,490

9.7

△16.2

Asia

6,879

2.3

8,822

2.8

28.2

Other Areas

6,312

2.1

10,765

3.4

70.5

Subtotal

265,71487.8

266,53184.6

0.3

302,777100.0

314,911

100.0

4.0

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

Main Products
LCD Television, DVD Player, DVD Recorder,
Blu-ray Disc Player

Information Equipment

Printer, Digital Still Camera

Other Equipment

Receiver-Related Electronic Equipment

from 2009.4.1
to 2010.3.31

Page
1. Summary of Full Year Financial Statements（Consolidated）

1(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）

2(1) Sales by Equipment

2(2) Sales by Area in Equipment

3(3) Sales by Equipment in Areas

3

3. Summary of 4Q (Jan.-Mar.)Financial Statements(Consolidated)

4(1) Operating Results

4(2) Sales by Equipment

4

FUNAI ELECTRIC CO.,LTD1. Summary of Full Year Financial Statements (Consolidated)(1) Operating Results,Financial Conditions
FY2008%Amount(Units:100million yen,%)
FY2010（Projections）

FY2009ChangeAmount%ChangeAmount%Change

3,027

100.0

9.2

3,149

100.0

4.0

3,500

100.0

11.1

Operating Income

14

0.5

−

111

3.5

690.9

130

3.7

16.6

Ordinary Income
Net Income/Loss after
Tax
Total Assets

12

0.4

−

116

3.7

852.9

129

3.7

10.4

△173

△ 5.7

−

103

3.3

−

100

2.9

△ 3.2

1,998

−

−

2,040

−

−

−

−

−

Net Assets

1,355

−

−

1,427

−

−

−

−

−

Net Sales（※） Yen−Dollars / exchange rate
FY2008

92.60(Units:Yen / Dollars)
FY2010（Projections）
90.00

FY2009Average Rate in each Period

100.66(2) Profitability and Per Share Data etc.
FY2008FY2009

（％）

14.7

18.2

FY2010（Projections）
17.7

Operating Income Ratio （％）

0.5

3.5

3.7

Ordinary Income Ratio （％）

0.4

3.7

3.7

Shareholders' Equity Ratio （％）

67.6

69.6

−

Net Assets Per share （yen）

3,963.72

4,164.86−

Net Income Per Share （yen）△ 509.33

302.97293.32

（％）

△ 8.2

5.1

−

Return On Shareholders' Equity （％）△ 11.97.5−

Number of Total Employees （人）

2,590

2,553

−

Gross Profit Ratio

Return On Assets(3) Capital Expenditures,Depreciation,R&D Expenses
FY2008AmountDepreciation Expenses
R&D

Change50

Capital Expenditures(Units:100million yen,%)
FY2010（Projections）

FY2009Amount2.0

Change△ 14.043

FY2009Amount % to Sale Change

Amount % to Sale Change

1.2△ 25.0130

4.3△ 11.6

−1−

43

1.4

134

4.3

Change76.7

76(Units:100million yen,%)
FY2010（Projections）

FY200836

Amount19.4
3.1

Amount % to Sale Change

54

1.5

25.6

161

4.6

20.1

(4) CashFlow

7

36(Units:100million yen)
FY2010（Projections）
−

△ 32

108

−

49

57

−

△ 24

△ 129

−

Cash flows used in investing activities

△ 107

△ 27

−

Free cash flows

△ 114

9

−

Cash flows provided by financing activities

△ 25

△ 78

−

Effect of exchange rate changes on

△ 28

4

−

△ 169

△ 64

−

FY2008FY2009△Cash flows provided by operating activities

Income Before Income Taxes

Depreciation Expenses
Otherscash and cash equivalents
Net increase in cash and cash

equivalents

2. Operating Activities (Consolidated)(1) Sales by Equipment
FY2008Amount%(Units:100million yen,%)
FY2010（Projections）

FY2009ChangeAmount%ChangeAmount%Change

2,306

76.1

25.2

2,335

74.2

1.3

2,565

73.3

−

VCRs

20

0.7

△ 55.6

10

0.3△ 50.03

0.1△ 70.0

DVD

402

13.3

△ 23.3

386

12.3

△ 4.0

293

8.4

△ 24.1

BD

122

4.0

−

189

6.0

54.9

296

8.5

56.6

Televisions

82

2.7

△ 68.06

0.2△ 92.7

0

0.0

−

1,342

44.3

49.6

1,594

50.6

18.8

1,929

55.1

21.0

338

11.1

193.9

150

4.8

△ 55.644

1.2−

Information Equipment

450

14.9

△ 30.7

546

17.3

21.4

618

17.6

13.2

Others

271

9.0

△ 3.0

268

8.5

△ 1.5

317

9.1

−

Total

3,027

100.0

9.2

3,149

100.0

4.0

3,500

100.0

11.1

Audio Visual Equipment

LCD Televisions
OthersNote:From FY2010 antenna set fot the North America is classified in 'Others' from 'Others in Audio Visual Equipment' which
was classified in FY2008 and FY2009.

−2−

(2) Sales by Areas in Equipment

FY2008Amount%(Units:100million yen,%)
FY2010（Projections）

FY2009ChangeAmount%ChangeAmount%Change

2,306

76.1

25.2

2,335

74.2

1.3

2,565

73.3

−

1,971

65.1

41.7

1,970

62.5

△ 0.1

1,879

53.7

−

211

7.0

△ 26.7125

4.0△ 40.8

167

4.8

33.6

1

0.0

△ 66.7

18

0.6

−

67

1.9

272.2

123

4.0

△ 22.6

222

7.1

80.5

452

12.9

103.6

450

14.9

△ 30.7

546

17.3

21.4

618

17.6

13.2

North America

174

5.8

△ 56.8

185

5.9

6.3

275

7.8

48.6

Europe

149

4.9

△ 9.1

177

5.6

18.8

220

6.3

24.3

Asia and Others

122

4.0

58.4

168

5.3

37.7

123

3.5

△ 26.8

Japan

5

0.2

△ 16.7

16

0.5

220.0

0

0.0

−

Others

271

9.0

△ 3.0

268

8.5

△ 1.5

317

9.1

−

Total

3,027

100.0

9.2

3,149

100.0

4.0

3,500

100.0

11.1

Audio Visual Equipment
North America
EuropeAsia and Others
Japan
Information Equipment(3) Sales by Equipment in Areas

FY2008AmountNorth America%(Units:100million yen,%)
FY2010（Projections）

FY2009ChangeAmount%ChangeAmount%Change

2,161

71.4

19.3

2,164

68.7

0.1

2,195

62.7

1.4

Audio Visual Equipment

1,971

65.1

41.7

1,970

62.5

△ 0.1

1,879

53.7

−

Information Equipment

174

5.8

△ 56.8

185

5.9

6.3

275

7.8

48.6

Others

16

0.5

△ 5.9

9

0.3

△ 43.841

1.2−

Europe364

12.0△ 20.2305

9.7△ 16.2

387

11.1

26.9

Audio Visual Equipment

211

7.0

△ 26.7125

4.0△ 40.8

167

4.8

33.6

Information Equipment

149

4.9

△ 9.1

177

5.6

18.8

220

6.3

24.3

4

0.1

0.0

3

0.1

△ 25.0

0

0.0

−

132

4.4

45.1

196

6.2

48.5

190

5.4

△ 3.1

1

0.0

△ 66.7

18

0.6

−

67

1.9

272.2

122

4.0

58.4

168

5.3

123

3.5

△ 26.890.4△ 18.2

10

0.3

0

0.0

−

370

12.2

△ 10.3

484

15.4

728

20.8

50.4

123

4.0

△ 22.6

222

7.1

452

12.9

103.6

5

0.2

△ 16.7

16

0.5

0

0.0

−

242

8.0

△ 2.4

246

7.8

276

7.9

12.2

3,027

100.0

3,149

100.0

3,500

100.0

11.1

OthersAsia and Others
Audio Visual Equipment
Information Equipment
OthersJapan
Audio Visual Equipment
Information Equipment
Others
Total

9.2

−3−

37.7
11.1
30.5
80.5
220.0
1.7
4.0

3．Summary of Fourth Quarter (Jan.-Mar.) Financial Statements (Consolidated)(1) Operating Results(Units:100million yen,%)Amount

FY2008FY20094Q

4Q
Change%Amount%Change

627

100.0

22.2

669

100.0

6.6

Operating Income/Loss

△ 18

△ 3.0

−

△ 3

△ 0.6

−

Net Income/Loss

△ 11

△ 1.9

−

△ 3

△ 0.5

−

Net Income/Loss after Tax

△ 13

△ 2.1

−

11

1.8

−

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

Average Rate in each Period

FY2008FY2009

4Q

4Q

95.19

90.74

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

FY2008FY20094Q

4Q%

ChangeAmount%Change

490

78.2

44.1

468

70.0

△ 4.5

VCRs

4

0.6

△ 50.0

0

0.0

−

DVD

58

9.3

△ 38.9

55

8.2

△ 5.2

BD

14

2.2

366.7

54

8.1

285.7

Televisions

6

1.0△ 86.70

0.0−

LCD Televisions

313

49.9

83.0

348

52.0

11.2

Others

95

15.2

427.8

11

1.7

△ 88.466

10.5△ 22.4

122

18.2

84.8

Audio Visual Equipment

Information Equipment
Others71

11.3△ 19.3

79

11.8

11.3

Total

627

100.0

22.2

669

100.0

6.6

−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