Presentation of Operating Results forthe 1st Quarter (Apr.‐Jun.) of FY2016
October 17, 2016

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

Summary of 1st Quarter (Apr.‐Jun.)
Summary of 1st Quarter (Apr.‐Jun.) (Ordinary Income, Net Income)Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Sales of Information Equipment
Geographic Breakdown of Sales
Factor of Changes of Operating Income
Financial Conditions
Changes of Inventories
Capital Expenditures, Depreciation Expense and R&D Expenditures
Revised Forecast for the Fiscal Year 2016
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1．Summary of 1st Quarter (Apr.‐Jun.)（100 million yen）

FY20151Q

N e t

FY2016
1Q

Y/Y(Changes)-128

S a l e s

378

250

Operating Income-42-2814)(-11.2%)(-11.5%)(－)

Ordinary Income-37-58-21)(-9.8%)(-23.4%)(－)

Net Income Attributableto owners of parent-40-57-17(-10.7%)(-22.8%)(－)(((MMMaaarrrgggiiinnn)

Average USD‐JPY
Exchange Rate

121.72(-33.7%)108.53Month End Exchange Rate

15/315/6

16/3

16/6

（USD/JPY）

120.17122.45112.68102.912

2．Summary of 1st Quarter (Apr.‐Jun.)(Ordinary Income, Net Income)（100 million yen）

FY2015
1Q
Non‐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)

FY2016
1Q

Y/Y

61131

‐530

‐37‐58‐2104202‐4‐41‐56‐15‐112‐40‐57‐17(note:2 Extraordinary income and losses)

Foreign exchange
gain and loss

Extraordinarylosses

Extraordinary
income42Interest
incomeInterestPaymentsOthers

00
FY2015 1Q

FY2016 1Q2

3

3．Breakdown of Sales by Equipment
 AV Equipment: LCD TVs and DVD related products decreased.
 Info Equipment: Printers decreased due to slow sales of ink-cartridge for OEM.
 Others:
Audio Accessories decreased.
（100 million yen）

Y / Y (Change)（100 million yen）

AV Equip-104(-33.4%)

DVD Equip-13(-21.9%)

TV Equip-91(-36.2%)

Information Equip-6(-38.0%)

Others-18(-34.1%)

Total-128(-33.7%)378

AVEquipment250
311
DVD： 60
T V：251

207
DVD： 47
T V：160

Information
Equipment
OthersSales Composition
OthersInformation
Equip.

DVD

14% 16%

4%

4%

1552
FY2015 1Q

FY2015934

OthersInformation
Equip.

TV

66%

13%

DVD

19%

FY2016

T V 64%FY2016 1Q
44．Sales of DVD related Equipment
 Sales increased without Blu-ray disc.

60
DVD Players

17（100 million yen）

（100 million yen）

47
Y / Y (Change)

12
DVD Recorders

146

Blu‐ray disc24

26

Others53

FY2015 1Q

FY2016 1Q

DVD Players-5(-28.3%)

DVD Recorders-8(-60.2%)

Blu-ray disc+2(+3.1%)

Others-2(-11.2%)

Total-13(-21.9%)

5

5．Sales of LCD Television Decreased due to the delay of New model and weak sales caused by pricewar against competitor.

251（100 million yen）

（100 million yen）

160

Y / Y (Change)

LCD TV251：- 91 （-36.2%）

160

FY2015 1Q

FY2016 1Q
6

6. Sales of Information Equipment Decreased, We launched the in‐house ink‐jet Printers, but we could not make up
for a decline of ink‐cartridges for OEM business.
（100 million yen）

15YoY Change (%)

9Information
Equipment

Information
Equipment

15:‐6 ( ‐38.0% )9FY2015Q1

FY2016Q17

7. Geographic Breakdown of Sales
 Americas: LCD TVs and Audio Accessories decreased.
 Japan:Blu-ray Disc Recorders for OEM had good sales, but LCD TVs decreased.

378（100 million yen）

（100 million yen）

Y / Y (Change)

250
Americas292

Americas-111(-37.8%)Europe-1(-25.7%)

Asia & Others-3(-67.7%)

Japan-13(-17.2%)

Total-128(-33.7%)

Sales Composition

181Europe
Asia & Others

Japan3479

Asia&Others

21Europe21%1%1%
FY2015

Asia&Others

77%26%
1%1%66
Americas

FY2015 1QJapanJapanEurope

FY2016

Americas 72%

FY2016 1Q
8

8. Factor of Changes of Operating Income＊ Add‐value=Sales – (Cost of sales + selling expenses)（100 million yen）

△24
Y/Y

Operating
IncomeOperating
Income- 28
Decrease ofGeneral
Expenses

- 42

Sales
decrease-4
Increased ofAdd‐value

153
FY2015 1Q

FY2016 1Q
99. Financial Conditions（100 million yen）
（100 million yen）

前Y 期/Y比1,849
1,541

Cash / Deposit
Accounts
Receivables

AssetsLiabilities
AndNet AssetsInventories

524
388
521

576

- 201

・Accounts Receivables

- 231

371

312

・Inventories- 209339
140239・Fixed Assets and Others- 77

Trade Payables

295

354
156

Accounts Payables
and Others

365

541
752
844

1,131
1,541

1,849
2015/6・Cash / Deposit

323
157

416

1,189

- 718

1,131

240

Fixed Assets
and Others

Net Assets

AssetsLiabilities- 281

・Trade Payables- 155

・Accounts Payables
and Others- 126

Net Assets- 437（ Equity Ratio
2016/3

65.9%）

2016/610

10. Changes of Inventories（100 million yen）

521
371

Finished products

265312（100 million yen）

Y/Y

227
190
Work in process

256
144

122

2015/6

2016/3

2016/6

4.1 months

3.0 months

3.7 months<Inventories Turnover>Finished products： ‐ 75Work in process： ‐ 13411

11. Capital Expenditures, Depreciation Expense and R&D Expenditures
1Q
CapitalExpenditures

Depreciation
ExpenseFull Year
R&DExpenditures

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures（ 100 million yen ）（ 100 million yen ）

120

120

Y/Y
‐4

Y/Y+2

Y/Y
‐4100

10080

80

60

60

40

40

77

72

2020

10
46635

2124

1723

2700
FY2015 FY2016
Q1Q1

FY2015 FY2016
Q1
Q1

FY2015 FY2016
Q1
Q1

FY2015 FY2016

FY2015 FY2016

FY2015 FY2016(Projection)(Projection)(Projection)

1212. Revised Forecast for the Fiscal Year 2016（100 million yen）

FY 2016 (Original Forecast) FY 2016 (REVISED Forecast)

Net

Sales

YoY Change(%)

1H

2H

Full Year

1H

2H

Full Year

1H

2H

Full Year

779

941

1,720706639

1,345-73-302-375（-21.8％）Operating
Income113243-30-10-40(margin)(1.4%)(-9.3%)(2.5%)(-4.2%)(-1.6%)(-3.0%)O rd i n a r y
Income43135-69-11-80(margin)(0.5%)(-11.6%)(2.0%)(-9.8%)(-1.7%)(-5.9%)Net Income

21214-67-15-82( m a r g i n )(0.3%)(1.3%)(0.8%)(-9.5%)(-2.3%)(-6.1%)

105.72103.00104.36

Average USD‐JPY
Exchange Rate

112.00-41-42-83

-73

-42

-115

-69

-27-9613

Ⅱ. Appendix
1. Quarterly Operating Summary of FY 2014 ‐ 2015
2. Quarterly Changes of Sales Amount by Equipment
3. Quarterly Changes of Sales Amount by Geography

141．Quarterly Operating Summary of FY 2015 ‐ 2016
（ 100 million yen ）FY2015FY2015

1Q2Q3QS a l e s

378

487

468

367

250

O p e ra t i n g I n c o m e‐42‐16‐14‐33‐28)(‐11.2%)(‐3.3%)(‐3.0%)(‐9.1%)(‐11.5%)

Ordinary Income‐37‐33‐14‐52‐58)(‐9.8%)(‐6.9%)(‐2.9%)(‐14.1%)(‐23.4%)Net Income Attributableto owners of parent‐40‐39‐11‐248‐57(‐10.7%)(‐8.1%)(‐2.2%)(‐67.6%)(‐22.8%)121.72121.72121.44115.05108.53N e t(((M a r g i n

M a r g i n

M a r g i n

Average USD‐JPYExchange Rate)

4Q

1Q

15

2．Quarterly Changes of Sales Amount by Equipment（ 100 million yen ）DVD Equipment

TV Equipment

487
378

Information Equipment

Others468

688160

367
53250
365

47329

251

270
160

155215391246836934

1Q

2Q

3Q

4Q

1Q

FY2015FY201616

3 ． Quarterly Changes of Sales Amount by Geography
Americas

Europe487

Asia & OthersJapan（ 100 million yen ）

468

378

367

406

377

292

250
284
181

54

2
179

617482

80

2166

1Q

2Q

3Q

4Q

1Q

34

FY2015FY201617

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.

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