FUNAI ELECTRIC.,LTD.
Presentation of Operating Results (Consolidated)in 3rd Quarter (Apr.-Dec.) of FY 2008

February 13, 2009

1Ⅰ

Outline of 3rd Quarter (Apr.-Dec.) of FY 2008
Operating Results (Consolidated)
１ Summary of Operating Results(Apr.-Dec.)
２ Breakdown of Sales by Equipment
３ Sales of Audio and Visual Equipment
４ Sales of DVD related Equipment
５ Sales of Television related Equipment
６ Geographic Breakdown of Sales
７ Financial Conditions
８ Changes of Inventories
９ Capital Expenditures, Depreciation Expense and R&D Expenditures2１

Summary of Operating Results (Apr.-Dec.)(100 million yen)Previous3Q

Net Sales

Current
3Q

Changes from
Previous 3Q＋ 6.3%

Operating Income

2,258122,40032＋154.7%

Margin(0.6%)(1.4%)△9 (※1)

Ordinary Income

57

23

Margin

(2.6%)(1.0%)Net Income after tax△30

7Margin(△1.3%)(0.3%)Net Income after tax

△30

△160

Margin(△1.3%)(△6.7%)※

Average USD- JPY
Exchange Rate

117.14△ 58.6%ー△183 (※2)−102.48（※1） Interest receivables +30、 Forex gain △35、Interest expenses△3、 Others △1（※2） Income taxes for prior periods △168、Loss on valuation of investment securities △27、Others+12※ 〔 before deduction of income taxes for 16.8 bill.yen for prior periods 〕

3２Breakdown of Sales by Equipment

AV Equipment
Information Equipment
Others(100 million yen)

2,258

2,400

AV Equipment(100 million yen)Comparison to Previous 3Q

1,501

1,816

AV Equipment：＋315 （＋21.1％）

Information Equipment：△181 （△32.1％）

Otherstotal565

384

192

200

Previous 3Q(Apr.-Dec.)

Current 3Q(Apr.-Dec.)：＋ 8（＋ 3.9％）：＋142 （＋ 6.3％）

4

３

Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment

1,816(100 million yen)

1,501(100 million yen)

689

Comparison to Previous 3Q

467

1,034

1,127

Previous 3Q(Apr.-Dec.)

Current 3Q(Apr.-Dec.)

DVD related Equipment：＋222（＋47.5％）

Television related Equipment： ＋ 93（＋ 9.0％）

total：＋315（＋21.1％）

5４

Sales of DVD related Equipment

Video
DVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc Player
Digital STB

16

Blu-ray disc Player

Digital STB

・Going well after launching in a full scalein April.
・Going well quarter by quarter.
(100 million yen)

177

467

Comparison to Previous 3Q

37

167

263

108221

166
1(Blu-ray)Previous 3Q(Apr.-Dec.)

DVD Recorders

・Following the track of market contraction after plateauing out.

689

(100 million yen)

DVD Players

Current 3Q(Apr.-Dec.)

Video： △21 （△56.8％）

DVD Player related Equipment： △86 （△32.7％）

DVD Recorder related Equipment：＋1 （＋ 0.6％）

BD Player：＋107 （−）

Digital STB：＋221 （−）

total：＋222 （＋47.5％）
6

５

Sales of Television related Equipment
CRT TVLCD TV

1,127(100 million yen)1,034

・Accelerating a downward-trend as

CRT TV

OthersLCD TV expands rapidly.
・Gaining amount due to Philips brand

LCD TV

contribution.

76

・Withdraw of projectors in 4Q.

Others211(100 million yen)Comparison to Previous 3Q

1,029
726

97
Previous 3Q(Apr.-Dec.)

22
Current 3Q(Apr.-Dec.)

CRT TＶ： △135（△64.0％）

LCD TV： ＋303（＋41.7％）

Others： △75（△77.3％）

total： ＋93 （＋ 9.0％）

7６

Geographic Breakdown of Sales(100 million yen)

2,258

2,400

North America
・LCD TV,Digital set top box,BD player
more covered than the decline of information equip.

Europe

1,499

1,711

・Suffered from price-war of LCD TV against

Korean or Turkish brand.

(100 million yen)

(71.3%)(66.3%)

Comparison to Previous 3Q
North America： ＋212 （＋14.2％）

Europe：△84 （△21.3％）

72295

308
113
268

Asia & Others：＋41 （＋56.9％）

Japan：△27 （△ 9.3％）

Previous 3Q(Apr.-Dec.)

Current 3Q(Apr.-Dec.)

total： ＋142 （＋ 6.3％）

392

8

７

Financial Conditions
Comparison to 2007/12（100 million yen）

2,557
2,244

Cash / Deposit

Assets746

Accounts
Receivables

388Inventories

387
1,036

Trade Payables

310

Accounts Payables
and Others

479

Assets

840
268
350
946

・Cash / Deposit＋ 94

・Accounts Receivables＋ 45433

・Inventories＋ 32419・Fixed Assets and Others

△ 621

415

258
403

1,583
Net Assets

2,107

680

Fixed Assets
and Others

Liabilities
andNet Assets（100 million yen）

371
432

Liabilities

1,304

1,768

2,244

2,107

・Trade Payables＋61

・Accounts Payables
and Others△47

Net Assets
・Net Assets

2,557

△ 464

（Shareholders’ Equity Ratio 61.7％）
2007/12

2008/3

2008/129８

Changes of InventoriesFinished products
Work in process

683(100 million yen)(100 million yen)

387
259

350

419

Comparison to 2007/12557
331

211

128

139

126

88

2007/12

2008/3

2008/92008/121.7months

2.0months

2.4months

1.3months

Finished products＋72Work in process△40〈Inventories Turnover〉
10Capital Expenditures, Depreciation Expenseand R&D Expenditures

93Q

Full Year

CapitalExpenditures

Depreciation
Expense

R&D
Expenditures

△ 12

△ 12

△ 12

CapitalExpenditures

R&DExpenditures(100million yen)

(100million yen)

160

160

140

140

12012010010080806060

147

110
98

4020

DepreciationExpense

4230394020495448382701340

2007/12 2008/12

2007/12 2008/12

2007/12 2008/12

2008/3 2009/3

2008/3 2009/3

2008/3 2009/3(Forecast）（Forecast）（Forecast）

11Ⅱ

Full Year Forecast
１２３４５

Forecast of Operating Results in FY2008 ending March 2009
Breakdown of Sales by Equipment
Sales of Audio and Visual Equipment
Sales of DVD Related Equipment
Sales of Television Related Equipment

12

Forecast of Operating Results in FY 2008
Ending March 20091(100 million yen)

Results ofFY2007

Previous
Forecast(Released in Jun.)

Revised
Forecast ofFY2007

AmountAmountAmountNet Sales

2,771△243,40060

3,040
5Margin(△0.9%)(1.8%)(0.2%)

Ordinary Income△080△15Margin(△0.0%)(2.4%)(△0.5%)Net Income after tax△5358△22Margin(△1.9%)(1.7%)(△0.7%)

△53a

△114

△190(△1.9%)(△3.4%)(△6.3%)

Operating Income

Net Income after tax
MarginAverage USD- JPY
Exchange Rate

113.80100.00Changes from
FY2007

ChangesfromPrevious
Forecast+9.7%△10.6%

ー△91.7%ーーーーーー

100.0013２

Breakdown of Sales by Equipment(100 million yen)

AV Equipment
Information Equipment
Others(100 million yen)Comparison to Previous Year

3,400
3,040

2,771

AV Equipment： ＋479 （＋26.0％）

Information Equipment： △204 （△31.4％）

Others

Total

2,623

：△6 （△ 2.1％）： ＋269 （＋ 9.7％）

2,320

1,841

Comparison to Previous Forecast
AV Equipment： △303 （△11.6％）

650

484

446

Information Equipment： △ 38 （△ 7.9％）

280

293

274

Others： △ 19 （△ 6.5％）

Total： △ 360 （△10.6％）

2008/3

2009/3

2009/3（Results）（Previous Forecast）（Revised Forecast）

14

３

Sales of Audio and Visual Equipment(100 million yen)

DVD related Equipment
Television related Equipment(100million yen)Comparison to Previous Year

2,623
2,320
960

1,841863

DVD related Equipment： ＋276 （＋47.0％）

Television related Equipment： ＋203 （＋16.2％）

Total： ＋479 （＋26.0％）

587
Comparison to Previous Forecast

1,663

1,457

1,254

2008/3

2009/3

2009/3（Results）（Previous Forecast）（Revised Forecast）

DVD related Equipment： △97 （ △10.1％）

Television related Equipment： △206 （△12.4％）

Total： △303 （△11.6％）
15４

Sales of DVD related Equipment

VideoDVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc Player
Digital STB ※960

(100 million yen)

20863

22320204587
23045196155322

125(100million yen)Comparison to Previous Year
Video： △25 （△55.6％）

DVD Player related Equipment： △118 （△36.6％）

DVD Recorder related Equipment：BD Player： ＋121 （−）

Digital STB： ＋304 （−）

Total

DVD Player related Equipment

2023184（Blu-ray)
14（STB)

2008/3（Results）

2009/3

2009/3（Previous Forecast） （Revised Forecast）※ (Terrestrial analog broadcasting will be delayedfor about four months till June 12,2009. )： ＋276 （＋47.0％）

Comparison to Previous Forecast
Video332△6 （△ 3.0％）：− （−）： △19 （△ 8.5％）

DVD Recorder related Equipment ： △34 （△14.8％）

BD Player： △30 （△19.4％）

Digital STB： △14 （△ 4.2％）

Total： △97 （△10.1％）
16

５

Sales of Television related Equipment(100million yen)

CRT TVLCD TV

Comparison to Previous Year

Others(100 million yen)

CRT TV： △177 （△69.1％）

1,457

LCD TV： ＋451 （＋50.3％）

79Others： △ 71 （△70.3％）

Total： ＋203 （＋16.2％）

1,663901,254256
1,533

1,348
897

1014030

2008/3

2009/3

2009/3（Results）（Previous Forecast）（Revised Forecast）

Comparison to Previous Forecast
CRT TV： △ 11 （△12.2％）

LCD TV： △185 （△12.1％）

Others： △ 10 （△25.0％）

Total： △206 （△12.4％）
17

Ⅲ

Supplemental Data ①
Summary of Operating Results (Oct.(Oct.-Dec.)
１２３４５

Summary of Operating Results(Jan.-Mar.)Breakdown of Sales by Equipment
Sales of Audio and Visual Equipment
Sales of DVD related Equipment
Sales of Television related Equipment

18１

Summary of Operating Results (Oct.-Dec.)(100 million yen)Previous 3Q

Current 3Q

Net Sales

695

954

Operating Income△ 7△ 10Margin(△1.1%)(△1.1%)

Ordinary Income

7△ 35Margin(1.1%)(△3.8%)

12△ 39(1.8%)(△4.1%)Net Income after tax
MarginAverage USD- JPY
Exchange Rate

113.02

Changes from
Previous 3Q

37.2%

ー△25 (※1)

ーー94.99（※1） Interest receivables +13、 Forex gain △36、 Others △219２

Breakdown of Sales by Equipment
AV Equipment
Information Equipment
Others(100 million yen)954
(100million yen)

695

Comparison to Previous 3Q

779
520

1136210768Previous 3Q(Oct.-Dec.)

Current 3Q(Oct.-Dec.)

AV Equipment： ＋259（＋49.8％）

Information Equipment： △ 6 （△ 5.3％）

Others： ＋ 6 （＋ 9.7％）

Total： ＋259（＋37.2％）

20

３

Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment779(100million yen)

221

520

Comparison to Previous 3Q

148
558
372

DVD related Equipment： ＋ 73（＋49.3％）

Television related Equipment： ＋186（＋50.0％）

Total

Previous 3Q(Oct.-Dec.)： ＋259（＋49.8％）

Current 3Q(Oct.-Dec.)
21

４

Sales of DVD related Equipment

VideoDVD Player related Equipment
DVD Recorder related Equipment(100million yen)Blu-ray disc Player
Digital STB

2215(100million yen)Comparison to Previous 3Q

53148
1252

79

32：△ 7 （△58.3％）

DVD Player related Equipment：△ 26 （△32.9％）

DVD Recorder related Equipment：△ 4 （△ 7.1％）

BD Player：＋ 31 （−）

Digital STB：＋ 79 （−）

79

56

Total

1（Blu-ray)Previous 3Q(Oct.-Dec.)

Video：＋ 73 （＋49.3％）

Current 3Q(Oct.-Dec.)
22

５

Sales of Television related Equipment
CRT TVLCD TV
Others(100million yen)558
19(100million yen)Comparison to Previous 3Q

37270531276

26
Previous 3Q(Oct.-Dec.)

CRT TV： △ 51 （△72.9％）

LCD TV： ＋255 （＋92.4％）

Others： △ 18 （△69.2％）

Total： ＋186 （＋50.0％）8
Current 3Q(Oct.-Dec.)
23

Ⅳ

Supplemental Data ②
１ Quarterly Operating Summary of FY2007,2008
２ Quarterly Changes of Sales Amount by Equipment

24

Quarterly Operating Summary of FY 2007, 2008

１（100 million yen）

FY 2007

Current 3Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Net Sales773

790

695

513594852954

Operating Income119△7△ 36933△ 10(1.1%) (△1.1%) (△7.0%)(1.7%)△ 5844(1.1%) (△11.3%)(7.5%)△ 23△137(1.5%)

MarginOrdinary IncomeMargin

Net Income After Tax
Margin446(5.8%)(0.8%)

13△ 56(1.7%) (△7.1%)

712(1.8%) (△4.5%) (△23.2%)(3.9%) (△1.1%)

15△ 35(1.8%) (△3.8%)

16△ 39(2.0%) (△4.1%)

25

Quarterly Changes of Sales Amount by Equipment2

DVD related Equipment

Television related Equipment

Information Equipment

Others（billion yen）

954

1000

800773790

166

153

2000221695
148

600

400

852

323

339

594
513
120

188

72

220

229

113

85

107

170

107

62

88

7062

68

240
58

558
340

372
212

280

1Q

2Q

3Q

4Q

1Q

2Q

3Q

(07/6)(07/9)(07/12)(08/3)(08/6)(08/9)(08/12)26

Disclaimer•

This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that thesestatements are based on information relating to factors that may impact futurebusiness performance that was available for analysis at the time this document
was printed. These factors include industry trends relating to the businessareas of Funai Electric Co., Ltd. or the Funai Group, such as audio-visualdevices and information communication equipment, the economic conditions ofboth domestic and international markets, and fluctuations in currency exchange
rates. Actual performance may greatly differ from projections included in thisdocument because of the impacts of uncertainty in such areas as thecompetitive conditions of the electronics industry, market trends, currency
exchange rate, introduction and success of new products, and various otherglobal conditions that may affect the tax system and other systems.

27