Presentation of Financial Results
First Quarter (Apr.-Jun) of FY2018

August 6, 2018
FUNAI ELECTRIC CO.,LTD.
TSE68391

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

Summary of 1st Quarter (Apr.-Jun.)
Summary of 1st Quarter (Apr.-Jun.)
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Break Down of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures21. Summary of 1st Quarter (Apr.-Jun.)〈100 million yen〉

FY20171Q

FY2018
1Q

Difference(Y / Y)Net Sales

320216

Operating Income-23-12(-7.3%)(-5.7%)-21-9(Margin)(-6.7%)(-4.2%)Net Income Attributableto owners of parent-15-0(Margin)(-4.7%)(-0.1%)

111.41109.53(Margin)

Ordinary Income

Average USD-JPY
Exchange Rate
Month End
USD-JPY
Exchange Rate

Mar.2017

Jun.2017

Mar.2018

Jun.2018

112.19112.00106.24110.54-104（-32.5%）＋11＋12＋153

2. Summary of 1st Quarter (Apr.-Jun.)〈100 million yen〉

FY2017
1Q

Operating incomeNon-operating income
Non-operating expenses（note:1）

Ordinary Income
Extraordinary income
Extraordinary losses（note:2）

Income before Income Taxes

Income taxes

Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)
2017.1Q

FY2018
1Q

Difference(Y / Y)-23-12＋1142

30-1-2-21-9＋12000000-21-9＋126

9＋3-15-0＋15(note:2 Extraordinary income and losses)
2017.1Q

2018.1Q

2018.1Q

31120000-2Interest income

Interest

Foreign exchange

Payments

gain and loss0Extraordinary income00

Extraordinary losses

Others4

3. Breakdown of Sales by Equipment
 AV Equipment：Decreased due to the effect of distribution inventory adjustment inNorth America.
 Info Equipment：Increased due to sales of coupon printers and commercial inkcartridges.
〈100 million yen〉

Y/Y（Change）

320

AV Equip216
AVEquipment

306-117(-38.3%)DVD Equip-15(-29.3%)

TV Equip-102(-40.0%)

Information Equip＋3(＋37.4%)

Others＋10(＋128.4%)

Total-104(-32.5%)

DVD: 50
T V:256

Sales Composition

189
DVD： 35
T V ：154

Others2%
Information 2% DVD
16%
Equip

Information
Equipment
Others

771017FY2017.1Q

FY2018.1Q

FY2017
1Q
TV

80%

Others8%
Information
Equip
5%

DVD

16%

FY2018
1Q
TV

71%
5

4. Sales of DVD related Equipment Decreased, demand changed by rapid spread of Video streaming service suchas the internet and sales of new products into the Japanese market were one
month behind last year.
〈100 million yen〉

50

BD Recorders

Y/Y（Change）

35
2821

BD Players
DVD Products
OthersBD Recorders-7(-26.6%)

BD Players-4(-32.9%)

DVD Products-2(-25.6%)

Others-2(-49.4%)

Total-15(-29.3%)

1396341

FY2017.1Q

FY2018.1Q
6

5. Sales of LCD Television Decreased due to the influence of the distribution inventory adjustment phaseof the North American market.
〈100 million yen〉

256
Y/Y（Change）

154
LCD TVLCD TV-102（-40.0%）256
154

FY2017.1Q

FY2018.1Q
7

6. Sales of Information Equipment
 Increased , Sales of inkjet printers of unprofitable products were narrowed down, but
sales increased due to sales of coupon printers and increased sales of commercial ink
cartridges〈100 million yen〉

10
Y/Y（Change）

7Information Equip＋3（＋37.4%）

10InformationEquip

7

FY2017.1Q

FY2018.1Q

87. 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.
 Japan：Decreased, Sales of new products were one month behind last year.
〈100 million yen〉

320216
Americas

219

Y/Y（Change）
Americas-79(-35.9%)

Europe0(-33.5%)

Asia & Others＋8(＋507.1%)

Japan-33(-33.6%)

Total-104(-32.5%)

Sales Composition

140Europe
Asia &Others
Japan1199

FY2017.1Q1930%
FY2017
1Q66
FY2018.1Q

JapanJapan
31%

Asia&Others

1%
Americas 68%

Asia&Others

5%

FY2018
1Q

65%
Americas98. Operating Income Analysis (Y/Y)

〈100 million yen〉

Y/Y（Change）
FY2017.1Q

FY2018.1Q
OperatingLoss

OperatingLoss△ 12
Decrease ofGeneralExpenses

△ 23

Sales

+18

Decrease△5Decreased of
Add-value△210

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

1,231

Cash / Deposit

353

Accounts
Receivables

148

Inventories

442

Fixed Assets
and Others

288

Trade Payables

345

Accounts Payables
and Others
Liabilities

141AssetsAnd
Net Assets

Net Assets

745

Assets

-435

802

796

・Cash / Deposit

-32

323

321

・Accounts Receivables

-43

99
236

105
221

・Inventories

-221

144
118
177

149
144
140

・Fixed Assets andOthers

-139

507

512

802

796

Liabilities-202

・Trade Payables-201

・Accounts Payables
and Others-1

Net Assets-233（Equity Ratio

64.3%）

1,231

Jun.2017

Mar.2018

Jun.2018
1110. Inventories Trends

Y / Y (Change)<Inventories Turnover period in months>： - 97Work in process： - 124

4.1

3.7
2.2

Finished products

2.2

2.6

442

312

Finished products

190

299

198268

262

215

122

101

Jun.2016

Sep.2016

2.6

3.3

3.1

452
319
253

236

221

185

193

154
227

Work in process

3.4〈100 million yen〉

75
Dec.2016

134Mar.2017

118

104

103Mar.2018

Jun.2018

199

108
Mar.2017

132

Sep.2017

Dec.201712

11. Capital Investment, Depreciation and R&D
Full YearFirst Quarter
CapitalInvestment

Depreciation

R&D

Y/Y-2

Y/Y-6

Y/Y
-4

〈100 million yen〉
18

CapitalInvestment

Depreciation

R&D〈100 million yen〉
70

1660

17

1450

13

12
1040

830

64762

29

20

563

21
102

3

1710
FY2017 FY2018

1Q1QFY2017 FY2018

1Q

1Q

70
FY2017 FY2018

1Q

1Q

FY2017FY2018(Forecast)

FY2017FY2018(Forecast)

FY2017FY2018(Forecast)13

Ⅱ. Appendix
1. Quarterly Financial Summary

2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography

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

FY2017
1Q

2Q

320

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

FY2018
3Q

401

4Q

366

1Q

214216-23-17-18-50-12(-7.3%)(-4.3%)(-5.0%)(-23.4%)(-5.7%)-21-14-22-60-9(-6.7%)(-3.7%)(-6.1%)(-28.3%)(-4.2%)-15-115-24-92-0(-4.7%)(-28.9%)(-6.6%)(-43.1%)(-0.1%)

111.41111.16112.73107.46109.5315

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others〈100 million yen〉

401
366

51

320

51

50

328
299

256

214

216

33

35

158

154

77

12
10

7
97
16

10
17

1Q

2Q

3Q

4Q

1Q

FY2017FY201816

3. Quarterly Sales Trends by Geography
Americas

EuropeAsia & OthersJapan〈100 million yen〉

401366320304277219

214

216

143

140

1191

11

4

99

92

85

763

66

1Q

2Q

3Q

4Q

1Q

22

FY2017Fy201817

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.

18