Presentation of Operating Results in 2ndQuarter (Apr.- Sep.) of FY 2009

November 10, 2009FUNAI ELECTRIC.,LTD.
Security code ６８３９0

Ⅰ. Brief Outline of Operating Performance of 1H (April toSeptember), Projection of 2H (October to March),and Target of Mid-Term

1. Outline of 1H (April to September)
2. Outlook for 2H (October to March)
3. Projection of 2H (October to March) and Full Year
4. Mid-Term Target and Measures

1１．Outline of 1H (April to September) ①(100 million yen)

Sales
Operating Profit(Margin)

2008
Results2009
Projection2009
Results

1,4461,745

1,670

4355

100（3.0%）（3.2%）（6.0%）

Below projection （△4.3%）

Sales

Above projection (approx. double)

Operating Profit
Margin (%)

2

１．Performance of 1H (April to September) ②
TV Segment
Successfully achieved turning into black from red
which was the company’s most priority issue.

DVD Segment
More than projection(In the most advantageous and competitive position)

Information Equip. Segment
More than projection(With strategic review)
3２．Outlook for 2H (October to March)
Full-fledged economic recovery in US to come after bottoming out andremained weak is still unforeseeable
US High Job Losses●Unemployment rate has been changing at historical high rate (October 10.2%, since April 1983)（After Lehman bankruptcy 08/Oct. 6.6% , Dec. 7.2% , 09/Mar. 8.5% , June 9.5% , Sep. 9.8% ）Anxiety about job opportunity is heavily hanging over consumer spending for a time.
●Conditions of consumer electronics market to come is to be tough andunpredictable based on concern about further fall of private consumption.

Forex ($/¥)●Concern about the risk of further yen appreciation which depends on the monetary and economic
policy by the Japan and US government

Final conclusion to be judged after making sure of the year-end sales trend
4３．Projection of 2H(October to March) and Full Year(100 million yen)

Revised

Sales
Operating Profit(Margin)

1H Results

2H Projection

FY Projection

1,670

1,630

3,300

100

20120

（6.0%）（1.2%）（3.6%）

Revised the projection of FY sales from 3,400 to 3,300 due to thechange of assumed $/¥ exchange rate from 95 to 90 for 2H.
Operating Profit of 2H remained unchanged from the original
projection in May before the review of year-end sales results in US.

5４．Medium-term Target and Measures
Targets for Consolidated Sales and Operating Profit for FY2012
SalesOperatingProfit

5,000(100 million yen)

250 （ 5% margin ）Measures to Achieve the Target
1 Fostering of human resources and appointments to responsible
positions
2 Sales of 10 million units LCD TV units
3Expansion of Blu-ray and related products line-up
PlayerRecorderHome Theater System

Portable Player

4 Enlargement of mechatronics-related business (e.g., printers)
5 Successful cultivation of new clients and entrance into emerging
markets6Ⅱ Outline of 2nd Quarter (Apr.-Sep.) ofFY2009 Operating Results (Consolidated)

1 Summary of Operating Results
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 Factor of Changes of Operating Income
８ Financial Conditions
９ Changes of Inventories
10 Capital Expenditures, Depreciation Expense and R&D Expenditures
Expenditures
11 Revised Forecast of Operating Results of FY2009 Ending March 20107

１．Summary of Operating Results(100 million yen)（Released in May 13)

Revision ofForecast（Released in Aug 10)

FY 2009
Results

Changes
From
Previous
FY2008Changes
FromPrevious
Forecast

1,446

1,7451,7451,670+224△75(+15.5%) (△4.3%)

Operating Income

434155100+57

Margin

(3.0%)(2.3%)(3.2%)(6.0%)△5 (※1)

Ordinary Income

5938

53

95

Margin

(4.1%)(2.2%)(3.0%)(5.7%)△121303973(△8.4%)(1.7%)(2.2%)(4.4%)

106.22

95.00

95.00

94.78

Net Sales

Net Income after tax

MarginFY 2008
Results

Average USD- JPY
Exchange Rate

Previous
Forecast+36

Changes
FromProjection△75(△4.3%)+59+45+57+42+43+34△22 (※2)+194（※1） Interest receivables +5、Forex loss △ 10（※2） Income taxes △228

２．Breakdown of Sales by Equipment
AV Equipment
Information Equipment
Others1,670(100 million yen)

1,446(100 million yen)Comparison to Previous 2Q

1,037

1,282

277265132

123

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)

AV Equipment： ＋245 （＋23.6％）

Information Equipment： △ 12 （△ 4.5％）

Others：△Total： ＋224 （＋15.5％）9 （△ 6.3％）

9３．Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment(100 million yen)

1,037

1,282
(100 million yen)

462

Comparison to Previous 2Q
DVD related Equipment468：△6 （△ 1.3％）

Television related Equipment：＋ 251 （＋44.1％）

Total：＋ 245 （＋23.6％）

820
569

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)

10

４．Sales of DVD related Equipment
VideoDVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc Player
Digital STB

DVD Player

DVD Recorder・In line with contraction of market, recorder shrank, however,player increased more than projection.

(100 million yen)

468

462

Blu-ray disc Player

・Growth stage still ahead.

118

Digital STB&Others

・Production and sales of Digital STB
completely terminated in June.

124

115
76
142

Previous 2Q(Apr.-Sep.)(100 million yen)

157

Comparison to Previous 2Q
Video：△ 3 （△27.3％）

DVD Player related Equipment：＋33 （＋26.6％）

DVD Recorder related Equipment：△34 （△29.6％）

BD Player：＋33 （＋43.4％）

107

Digital STB：△35 （△24.6％）

Current 2Q(Apr.-Sep.)

Total：△ 6 （△ 1.3％）

81
109

11

５．Sales of Television related Equipment
CRT TVLCD TVCRT TV

Others・Contraction was accelerated
due to sharp growth of FPD TV.

820(100 million yen)

5・Philips brand in US started toLCD TV

contribute for growth.

569(100 million yen)Comparison to Previous 2Q

57
791
498

1424

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)

CRT TＶ： △ 52 （△91.2％）

LCD TV： ＋293 （＋58.8％）

Others： ＋ 10 （＋71.4％）

Total： ＋251 （＋44.1％）

12

６．Geographic Breakdown of Sales
North America
EuropeAsia & Others
JapanNorth America
・CRT TV： Shrinked in line with the market trend.

1,670

1,446

・LCD TV： Big gained by adding Philips brand.
・D V D ： DVD player in addition to Blu-ray disc player expanded
and more than offset decline of Digital STB.

Europe・Under on-going restructuring both of DVD related equip. andLCD TV lost sales.
(100 million yen)

1,249
1,000

Comparison to Previous 2Q
North America：＋249 （＋24.9％）

Europe：△ 46 （△23.3％）

Asia & Others

195
72
179

149
81191

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)：＋9 （＋12.5％）

Japan：＋ 12 （＋ 6.5％）

Total：＋224 （＋15.5％）
13７．Factorof Changes of Operating Income
７．
《Comparison to 2008/9》

Improved
add-value＊

Sales
increase《Comparison to the original projection in May》

Decreaseof general
expenses

Improved
add-value＊

7

Decreaseof general
expenses

924

57
26

100

Sales
decrease

100

Operating
Income△7Operating
Income4341

Operating
IncomeOperating
IncomePrevious
2Q

Current
2Q

OriginalProjection

FY 2009
Results(Apr.-Sep.)(Apr.-Sep.)(Apr.-Sep.)(Apr.-Sep.)＊ Add-value=Sales - (Cost of sales + selling expenses)

14

８．Financial Conditions

Assets（100 million yen）

2,444

Cash / Deposit

500

Accounts
Receivables

422

Inventories

683

Liabilities
andNet Assets

1,998
965

Fixed Assets
and Others

839

Trade Payables

527

Accounts Payables
and Others

Comparison to 2008/9

288
306

899
364
458

439

419

281
362

486

454
1,355

Net Assets

2,140

295

1,359

1,463

1,998

2,140

Assets△ 304

・Cash / Deposit＋ 399

・Accounts Receivables△・Inventories△ 225

58・Fixed Assets and Others △ 420

Liabilities△200

・Trade Payables△ 41・Accounts Payables
and Others△ 159

Net Assets△104（Shareholders’ Equity Ratio 63.2％）

2,444
2008/92009/3

2009/915

９．Changes of Inventories
Finished products
Work in process(100 million yen)

683
Comparison to 2008/9458
363

557

299
241
126

122

159

2008/92009/6

2009/92.4months

1.4months

1.5months

Finished products△ 258Work in process＋ 33〈Inventories Turnover〉

16

Capital Expenditures, Depreciation Expenseand R&D Expenditures

10.

2Q

Full Year

CapitalExpenditures

Depreciation
Expense

R&D
Expenditures＋16＋2△1（100 million yen）

Depreciation
Expense

R&D
Expenditures＋4＋7＋9（100 million yen）

160

160

140

140

120

120

100

10080

806060130 13940406766
20200

CapitalExpenditures

2950 54

201318

2008/9 2009/9

2008/9 2009/936

430

2008/9 2009/9

2009/3 2010/3(Projection）

2009/3 2010/3（Projection）

2009/3 2010/3（Projection）

17

Revised Forecast of Operating Results of

11. FY2009 Ending March 2010(100 million yen)

Forecast

Revision ofForecast

3,027

3,400

3,300

1460

120

Margin(0.5%)(1.8%)(3.6%)

Ordinary Income

1253

114

Margin(0.4%)(1.6%)(3.5%)△173

3987(△5.7%)(1.1%)(2.6%)

FY2008ResultsNet Sales
Operating Income

Net Income after tax
MarginAverage USD- JPY
Exchange Rate

100.66Previous

95.00

Changes from Changes
FromPrevious 2Q
Projection＋273△100(＋9.0%)（△2.9％）＋106＋60＋102＋61＋260＋48

90.00
18Ⅲ

Supplemental Data ①
Summary of Operating Results (Jul.(Jul.-Sep.)
１.
２.
３.
４.
５.

Summary of Operating Results
Breakdown of Sales by Equipment
Sales of Audio and Visual Equipment
Sales of DVD related Equipment
Sales of Television related Equipment

19

１．Summary of Operating Results
Changes fromPrevious 2Q

FY 2008 2Q

FY 2009 2Q

Net Sales

852894（＋4.9%）

Operating Income3363＋30

Margin(3.9%)(7.1%)△8 (※1)

Ordinary Income1555＋40Margin(1.8%)(6.2%)

1641(2.0%)(4.6%)Net Income after tax
MarginAverage USD- JPY
Exchange Rate

107.01＋42△14 (※2)＋2592.80（※1） Interest receivables +2、 Forex loss △11、Others +1（※2） Income taxes △13、Others △120

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

852

894
Comparison to Previous 2Q

620

170

676

62

156
62

Previous 2Q(Jul.-Sep.)

Current 2Q(Jul.-Sep.)

AV Equipment： ＋56 （＋9.0％）

Information Equipment： △14 （△8.2％）

Others： −Total： ＋42 （＋4.9％）

（− ）

21

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

676

620
213

Comparison to Previous 2Q

280

463
340

Previous 2Q(Jul.-Sep.)

DVD related Equipment： △ 67 （△23.9％）

Television related Equipment：＋123 （＋36.2％）

Total：＋ 56 （＋ 9.0％）

Current 2Q(Jul.-Sep.)

22

４．Sales of DVD related Equipment
Video
DVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc Player
Digital STB(100 million yen)

280

Comparison to Previous 2Q

5213

Video5DVD Player related Equipment

7277

DVD Recorder related Equipment ： △33 （△45.8％）

55

3967

81

71

：− （−）： ＋10 （＋14.9％）

BD Player： ＋16 （＋29.1％）

Digital STB： △60 （△74.1％）

Total： △67 （△23.9％）

21

Previous 2Q(Jul.-Sep.)

Current 2Q(Jul.-Sep.)
23

５．Sales of Television related Equipment
CRT TVLCD TV
Others(100million yen)

463
2Comparison to Previous 2Q

340
31448

CRT TV： △ 29 （△93.5％）

LCD TV： ＋149 （＋49.8％）

Others：＋Total： ＋123 （＋36.2％）

3 （＋30.0％）299

1013Previous 2Q(Jul.-Sep.)

Current 2Q(Jul.-Sep.)

24

Ⅳ Supplemental Data ②
Quarterly Comparison of FY 2008 and FY 2009
1. Operating Summary
2. Sales Amount by Equipment

25

１．Quarterly Operating Summary of FY 2008, 2009（100 million yen）

FY 2008

FY 2009

1Q

2Q

3Q

4Q

1Q

2Q

594852954627776894

933△ 10△183763(1.7%)(3.9%)(△1.1%)(△3.0%)(4.8%)(7.1%)

4415△ 35

△114055(7.5%)(1.8%)(△3.8%)(△1.9%)(5.3%)(6.2%)Net Income After Tax △13716△ 39△133141(△23.2%)(2.0%)(△4.1%)(△2.1%)(4.1%)(4.6%)Net Sales
Operating Income
MarginOrdinary Income
MarginMargin26

２．
Quarterly Changes of Sales Amount by Equipment．Quarterly
DVD related Equipment

Television related Equipment

Information Equipment

Others（100 million yen）

954

1,000

894

852

776

221

800

594

627

280

213

249

600

161

188

558

463

340

400

329

229

357

200

0

107

170

107

70

62

1Q
(08/6)

109

156

68

66
71

61

62

2Q

3Q

4Q

1Q

2Q

(08/9)(08/12)(09/3)(09/6)(09/9)
27

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.

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