From April 1, 2015
To June 30, 2015

August 3, 2015
Funai Electric Co., Ltd.

First Quarter (April‐June) Consolidated Financial Summary
for the Period Ending March 2016
(Million yen)Previous Year First Quarter

Current Year First Quarter

From April 1, 2014
to June 30, 2014

From April 1, 2015
to June 30, 2015

Amount%AmountRate ofincrease or
decrease

%

%

%

%

Net Sales

43,067100.0

37,722100.0(12.4)

Operating Income(Loss)(2,106)(4.9)(4,310)(11.4)－

Ordinary Income(Loss)(2,462)(5.7)(3,726)(9.9)－

Income(Loss) before IncomeTaxes(2,292)(5.3)(4,162)(11.0)－Net Income(Loss) attributableto owners of parent(2,331)(5.4)(4,039)(10.7)－Net Income(Loss) per Share(68.34)(118.38)

Notes:
1.We applied Accounting Standard for Business Combinations (ASBJ Statement No. 21, September 13, 2013) in thefirst quarter of the fiscal year ending March 31, 2016 and has changed “net loss” to “net loss attributable to owners
2.Includes 23 consolidated subsidiaries, 1 non‐consolidated subsidiary of equity method, 1 affiliated company ofequity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 3‐Month Period ended June 30, 2015
August 3, 2015

Listed company name: Funai Electric Co., Ltd.

Securities Code: 6839 Tokyo Stock Exchange, First Section(URL http://www.funai.jp/ )Representative: President and CEO
Tomonori Hayashi
Tetsuhiro Maeda
Inquiries: Director and Officer, Corporate Planning Division
Scheduled date of Quarterly Report; August 6, 2015
Scheduled date of Commencement of Annual Dividend Payment; －Quarterly Financial Results Supplementation: Yes
Quarterly Financial Results Seminar: No

TEL: (072) 870‐4395

1. First Quarter Consolidated Results for the Period Ending March 2015 (April 1, 2015 – June 30, 2015)(% denotes year on year)(1) Operating Results (Consolidated)

Net Sales

Operating

Ordinary Income

Income(Loss)(Loss)Net Income(Loss)
attributableto owners of parent
Million yen%
Million yen %Million yen%
Million yen%
st(4,039)37,722(12.4)(4,310)(3,726)－－－
1 Quarter FY2015(2,462)(2,331)43,067(14.8)(2,106)－－－
1st Quarter FY2014(Reference) Comprehensive Income 1st Quarter FY 2015 ended June 30, 2015 (2,966) million yen (－%)
1st Quarter FY 2014 ended June 30, 2014
(2,936) million yen (－%)
Net Income(Loss) Per Shareon a Fully Diluted BasisYen－－

Net Income(Loss) Per ShareYen
st(118.38)(68.34)

1 Quarter FY2015
1st Quarter FY2014(2) Consolidated Financial Positionst

1 Quarter FY2015
Fiscal Year 2014
(Reference) Equity

Net Assets
Total Assets
Million yen
Million yen
185,704
123,636
189,695
127,881
1st Quarter FY 2015 ended June 30, 2015
Fiscal Year 2014 ended March 31, 2015

Equity Ratio
%
65.9
66.8
122,422 million yen
126,677 million yen

2. Dividends
Dividend per Sharest

1 Quarternd

2 Quarteryen
Fiscal Year 2014－

Fiscal Year 2015－

Fiscal Year 2015
(Projection)

3rd Quarter

yen
0.00

－
st

Year‐Endyen

Annual
yen

yen

－

35.00

35.00

－

－

－

(Note) Revision of Annual Dividends Forecast in this 1 Quarter: No
The dividend for FY 2015 has been undecided. The company’s dividend policy of DOE is unchanged.
Because of the high impact stemmed from the recent fluctuations in exchange rates give to the consolidated
net assets, the dividend is to be disclosed at the time of disclosure has become possible to public.

3. Forecast of Consolidated Results for the Fiscal Year ending March 2016 (April 1, 2015 ‐ March 31, 2016)(% denotes year on year)
Net Income(Loss)Net Income
Operating
Ordinary
Net Sales
attributable(Loss)Per
Income(Loss) Income(Loss)to owners of
ShareparentMillion yen%

Million yen %Million yen %Million yen %Yen91,100 (21.3) (1,400) －(1,800) －(2,100) －(61.55)Six months ending Sep.30.2015
220,000
1.3
1,600 183.5
1,200 (37.6)
400 (70.5)
11.72
Full Year
(Note) Revision of Forecast of Consolidated Results for the six month period or the Full Year in this 1st Quarter: No*Note(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting in this 1st quarter: Yes(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results
1. Changes arising from revision of accounting standards: Yes
2. Changes arising from other factors: No
3. Changes in accounting estimates: No
4. Restatement: No(4) Number of Shares Outstanding (Ordinary Shares)
1. Number of shares outstanding (including treasury stock) as of June 30, 2015; 36,130,796 shares
as of March 31, 2015; 36,130,796 shares
2. Number of shares of treasury stock as of June 30, 2015; 2,011,665 shares
as of March 31, 2015; 2,011,665 shares
3. The Average number of outstanding shares on June 30, 2015; 34,119,131 shareson June 30, 2014; 34,119,181 shares* The Recording of Implementation Conditions Regarding Quarterly Review ProceduresThis quarterly financial summary does not fall within the scope of the Quarterly Review Procedures referenced in the
Financial Instruments and Exchange Act. At the time of disclosure of the quarterly financial summary, the Group was in
the process of implementing the quarterly review procedures for its quarterly financial statements.

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 factorsthat may impact future business performance 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 communication equipment, the economic
conditions of both domestic and international markets, and fluctuations in currency exchange rates. Actual
performance may greatly differ from projections included in this document because of the impacts ofuncertainty in such areas 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.

1. Qualitative Information Regarding Quarterly Financial Results(1) Explanation of Business Performance
During the first quarter of the fiscal year ending March 31,2016, the economy of the United States, which is theFunai Group’s (the “Group”) mainly market, could see a movement of improving, although consumer spending
remained sluggish. because housing market and employment grew steadily. European economy shown continuously
gradual recovery. On the other hand, China’s economy has continued to slow down. And in Japan, the economy
continued mild recovery trend, because the influence of the consumption tax hike came to an end.
Under these circumstances, the Group reported net sales of JPY 37,722 million, a 12.4% decrease comparedwith the same period last year.
Operating loss was JPY 4,310 million (the operating loss for the same period last year was JPY 2,106 million);ordinary loss was JPY 3,726 million (the ordinary loss for the same period last year was JPY 2,462 million); and net
loss attributable to owners of parent was JPY 4,039 million (the net loss attributable to owners of parent for thesame period last year was JPY 2,331 million).
The Group aims to improve profitability by strengthening the sales of 4K or large size LCD TVs of highvalue‐added and expanding the sales of printers, while thoroughly managing inventories.
The Group applied Accounting Standard for Business Combinations (ASBJ Statement No. 21, September 13,2013) in the first quarter of the fiscal year ending March 31, 2016 and has changed “net loss” to “net loss
attributable to owners of the parent.”
Segment conditions by location were as follows:i) Japan
Sales of LCD TVs increased, because the reaction to the rush demand of consumption tax hike has alreadypassed through, but sales of Information Equipment such as printer decreased.
As a result, net sales were JPY 8,486 million, a decrease of 32.6% year by year. Our segment loss (operatingloss) was JPY 2,486 million (the operating loss for this segment for the same period last year was JPY 640
million).
ii) Americas
LCD TVs increased slightly, and DVD‐related products increased compared to the same period previous year. On
the other hand, Audio Accessories and Home Theater system decreased.
As a result, net sales were JPY 27,966 million, a decrease of 3.2% year by year. Our segment loss (operatingloss) was JPY 1,137 million (the operating loss for this segment for the same period last year was JPY 957
million).
iii) Asia
Net sales were JPY 971 million, a decrease of 6.0% year by year due to a decrease in Ink Cartridges. Oursegment loss (operating loss) was JPY 438 million (the operating loss for this segment for the same period lastyear was JPY 134 million).
iv) Europe
Sluggish sales of LED TVs and DVD‐related products continued. As a result, net sales were down 46.8% year by
year, to JPY 299 million, and a segment loss (operating loss) was JPY 62 million (the operating loss for the same
period last year was JPY 58 million).
Net sales by product group were as follows:i) Audiovisual Equipment
In the Audiovisual Equipment sector, although home theater system has declined, sales of LCD TVs andDVD‐related products increased year by year.
As a result, net sales of this sector were JPY 31,043 million, an increase of 4.9% year by year.
ii) Information Equipment
In the Information Equipment sector, net sales were JPY 1,540 million, a decrease of 73.1% year by year due toa reduce in Printer.
iii) Other
Net sales were JPY 5,139 million, a decrease of 33.7% year by year on a decline of Audio Accessories .
(2) Qualitative Information Relating to Consolidated Financial Position
Our financial position at the end of first quarter is described below.
Total assets decreased by JPY 3,990 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to an increase of JPY 620 million in notes and accounts receivable‐trade, JPY 810 million in merchandiseand finished goods, JPY 9,225 million in raw materials and supplies and a decrease of JPY 14,377 million in cash anddeposits.
Total liabilities increased by JPY 254 million as compared to the end of the previous consolidated fiscal year. Thiswas mainly due to the decrease of JPY 2,093 million in notes and accounts payable‐trade and increases of JPY 1,117
million in short‐term loans payable, of JPY 1,062 million in other accounts payable.
Net assets decreased by JPY 4,245 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to an increase of JPY 990 million in foreign currency translation adjustment and a decrease of JPY 5,313
million in retained earnings.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
We have not revised its consolidated operating results forecast released on May 11, 2015.
Note: 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 these statements.

2. Summary Information(1) Changes to principal subsidiaries of consolidated financial statements for fiscal quarter
Although this matter does not fall under a change in specified subsidiaries, the Group has included DX ANTENNAPHILIPPINES, INC. in the scope of consolidation from the beginning in the first quarter of the fiscal year ending March
31, 2016 due to an increase in materiality.
(2) Unique accounting procedure for preparation of consolidated financial statements for fiscal quarter
Expenses relating to taxes are calculated by applying the estimated effective tax rates on the before‐tax net profit for
the fiscal quarter, through a practical estimation of the effective tax rates that will take effect after the application of
the tax effect accounting for before‐tax net profits of the consolidated fiscal year, including this first fiscal quarter.
(3) Change in accounting policy(Application of Accounting Standard for Business Combinations, etc.)
Effective from the first quarter of the fiscal year under review, the Group has applied Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013), Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013), and Accounting Standard for Business Divestitures (ASBJ
Statement No. 7, September 13, 2013) and has changed the accounting method to record the difference arising fromchanges in equity in subsidiaries the Company continues to control as capital surplus and to record acquisition‐related
costs as expenses in the fiscal year in which such costs are incurred. Regarding business combinations implemented on
or after the beginning of the first quarter of the fiscal year ending March 31, 2016, the Group has changed theaccounting method to retroactively reflect adjustments to the amount allocated to acquisition cost determined underprovisional accounting treatment in the consolidated financial statements for the interim accounting period in which
the date of the business combination occurs. In addition, the Group has changed the method of presentation of net
income and has changed from “minority interest” to “non‐controlling interest.” The consolidated financial statements
for the first quarter of the fiscal year ending March 31, 2014 and the consolidated financial statements for the fiscal
year ended March 31, 2014 have been restated to reflect this change in presentation.
The Group has applied the Accounting Standard for Business Combinations and other accounting standards inaccordance with the transitional treatment set forth in paragraph 58‐2 (4) of the Accounting Standard for Business
Combinations, paragraph 44‐5 (4) of the Accounting Standard for Consolidated Financial Statements, and paragraph57‐4 (4) of the Accounting Standard for Business Divestitures prospectively from the beginning of the first quarter ofthe fiscal year ending March 31, 2016.
The effect of the change of accounting standards on profit and loss is immaterial.
(4) Additional Information(About anti‐tax haven law)
The Group received a rectification notice from the Osaka Regional Taxation Bureau on June 29, 2011. The Bureau
determined that our Hong Kong subsidiary does not meet the requirements for exclusion under the anti‐tax havensystem and the Hong Kong subsidiary’s income for the three fiscal years ended March 31, 2008 through 2010, will beconsidered, and taxed as our income. We objected to these supplementary tax assessments, and filed a petition with
the Osaka Regional Tax Tribunal on August 25, 2011, to overturn the supplementary tax assessment order. Thereafter,
we received written verdicts on this case on July 18, 2012 indicating that our assertions had been dismissed.
This decision was truly regrettable for us, we couldn’t quite approval it. On January 17, 2013, we filed a revocation
claim litigation of correction disposal to the Tokyo District Court
The additional tax of JPY 825 million (JPY 935 million including incidental taxes) includes corporate, enterprise andresidence taxes. We charged the tax assessments to income as “prior year’s taxes” in the fiscal year ended March 31,
2012.The financial effect of applying the tax system beginning in the fiscal year ended March 31, 2011, the accounting

period after the fiscal year in which the tax examination concluded, has been charged to income.

3. Consolidated Financial Statements(1) Consolidated Quarterly Balance Sheets(Units : Million Yen)
Fiscal year 2014
(As of March 31, 2015)

1st Quarter FY2015(As of June 30, 2015)

ASSETS;
Current Assets
Cash and deposits

66,82052,442

Notes and accounts receivable ‐ trade38,18338,803Merchandise and finished goods

26,39827,209Work in process

1,455

1,743

Raw materials and supplies

14,70823,933

Other

7,598

6,688

Allowance for doubtful accounts

(389)

(382)

154,775

150,439

Property, plant and equipment

21,306

20,790Intangible assets

6,117

5,899

Net defined benefit asset

1,716

1,711

Other

6,055

7,173

Allowance for doubtful accounts

(276)

(310)

Total investments and other assets

7,496

8,574

34,92035,265

189,695

185,704

Notes and accounts payable ‐ trade

31,62529,531

Short‐term loans payable

4,012

5,129

485

383

Provision

1,459

1,241

Other

13,796

15,371

Total current liabilities

51,37851,658Long‐term loans payable

6,683

6,726

Provision

1,093

1,089

548

517

Other

2,110

2,076

Total noncurrent liabilities

10,435

10,40961,81362,068

Total current assets
Noncurrent Assets

Investments and other assets

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Income taxes payableNoncurrent Liabilities

Net defined benefit liability

TOTAL LIABILITIES(Units : Million Yen)
Fiscal year 2014
(As of March 31, 2015)

1st Quarter FY2015(As of June 30, 2015)

NET ASSETS;
Shareholders' equity
Capital stock

31,30731,307

Capital surplus

33,27233,272Retained earnings

93,84088,527

Treasury shares(24,341)(24,341)

Total shareholders' equity

134,079

128,766

421

473

Foreign currency translation adjustment(8,188)(7,197)

Remeasurements of defined benefit plans

365

381

(7,401)(6,343)

142

146

Minority interests

1,061

1,067

Total net asset

127,881

123,636

189,695

185,704

Accumulated other comprehensive income
Valuation difference on available‐for‐sale securities

Total accumulated other comprehensive income
Subscription rights to shares

TOTAL LIABILITIES AND NET ASSETS

(2) Consolidated Quartely Statements of Income and Consolidated Quartely Statement ofComprehensive Income(Consolidated Quartely Statements of Income)(Units : Million Yen)
1st Quarter FY2014

1st Quarter FY2015( from April 1, 2014
to June 30, 2014)( from April 1, 2015
to June 30, 2015)

Net sales

43,06737,722

Cost of sales

36,56632,141Gross profit

6,501

5,581

Selling, general and administrative expenses

8,608

9,892

Operating loss

(2,106)(4,310)Interest income

30

57

Dividends income

894

Foreign exchange gains－

527

Gain on investments in partnership

77

－

Other

62

61

Total non‐operating income

260

651

Interest expenses

47

39

Share of loss of entities accounted for using equity metho

1311Foreign exchange losses

398

－

Other

38

27

Total non‐operating expenses

616

67

(2,462)(3,726)

Gain on sales of non‐current assets

46－

Gain on sale of investment securities

－

10

134

－

1

－

183

10

Loss on disposal of non‐current assets

121

Loss on liquidation of subsidiaries and associates－

note1 434

Other

－

10

Total extraordinary loss

12

446

(2,292)(4,162)36(134)

Loss before minority interests(2,328)(4,027)

Minority interests in income

211(2,331)(4,039)Non‐operating income

Non‐operating expenses

Ordinary loss
Extraordinary income

Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses

Income loss before income taxes
Income taxes

Net Loss attributable to owners of parent

(Consolidated Quartely Statement of Comprehensive Income)

Income (loss) before minority interests(Units : Million Yen)

1st Quarter FY2014

1st Quarter FY2015( from April 1, 2014
to June 30, 2014)( from April 1, 2015
to June 30, 2015)(2,328)(4,027)

85

55

(700)

989

Share of other comprehensive income of entities
accounted for using equity method(6)0Remeasurements of defined benefit plans, net of tax

13

17

(607)

1,061

(2,936)(2,966)Comprehensive income attributable to owners of parent(2,941)(2,981)

Comprehensive income attributable to minority interests

4

15

Other comprehensive income
Valuation difference on available‐for‐sale securities
Foreign currency translation adjustment

Total other comprehensive Income
Comprehensive income(Comprehensive income attributable to)(3) Consolidated Quarterly Statements of Income(Notes for Continuing Enterprises)
Not Applicable(Notes of remarkable changes in Shareholders Equity)
Not Applicable(Consolidated balance sheets)
First Quarter Consolidated Fiscal Period – Year to Date (As of June 30, 2015)
Contingent liabilities(Arbitration)
Funai Electric Co., Ltd. (hereinafter, “Funai”) resolved to acquire from Koninklijke PHILIPS N.V. (hereinafter, “PHILIPS”)
all shares in a company that will hold the operation of the PHILIPS’ Lifestyle Entertainment Business and concluded ashare purchase agreement on January 29, 2013. But PHILIPS filed against Funai a petition as of October 25, 2013 forarbitration to claim compensation for damages on the grounds of breach of the agreement by Funai and the petition
has been served on November 8, 2013 by the International Chamber of Commerce.
With regard to this matter, Funai recognizes there to have been no breach of contract on its behalf. Consequently,
on December 6, 2013, Funai filed with the International Chamber of Commerce a counterclaim for claiming
compensation for damages on the grounds of breach of the agreement and undue action by PHILIPS.
On May 20, 2014 Funai received notice from PHILIPS of the amount of the claim for compensatory damages.
Subsequently, on October 1, 2014 Funai filed a statement to the International Court of Arbitration including indicationof the amount of compensatory damages claimed against PHILIPS.
On December 24, 2014 Funai received notice from PHILIPS of a revised amount of compensatory damages claimed
by PHILIPS.
The results of these arbitral proceedings may affect the Funai Group’s operating performance, but given the
difficulty of making a rational estimate of this impact during this first quarter consolidated fiscal period, such impact
has not been reflected in the Funai Group’s operating performance or financial condition.
Following is the outline of arbitration filed against Funai and counterclaim filed by Funai.
1. Outline of arbitration filed against Funai(1) Institution and date of arbitrationi) Institution where petition for arbitration is filed: International Chamber of Commerceii) Date of petition for arbitration: October 25, 2013
(2) Petitioner of arbitrationi) Name : Koninklijke PHILIPS N.V.
ii) Location : Eindhoven, The Netherlandsiii) Title & name of representative : Chief Executive Officer Frans van Houten(3) Details of petition and claimed amount for damagesi) Details of petition : A claim for damages on the grounds of breach of the agreement by Funaiii) Claimed amount : €189.6 million, statutory interest and arbitration costs
2. Outline of counterclaim filed by Funai(1) Institution with which counterclaim filed and date of filingi) Institution with which counterclaim filed : International Chamber of Commerceii) Date of counterclaim: December 6, 2013
(2) Other party to counterclaim filingi) Name : Koninklijke PHILIPS N.V.
ii) Location : Eindhoven, The Netherlandsiii) Title & name of representative : Chief Executive Officer Frans van Houten(3) Details of petition and claimed amount for damagesi) Details of petition : Claim for damages on the grounds of breach of the agreement and undue action by PHILIPSii) Claimed amount:€312.3 million, corporate tax equivalent and statutory interest, arbitration costs
An overview of the above‐mentioned share purchase agreement is as follows.
1. Name of other company and content of acquired businesses(1) Name of other company : Koninklijke PHILIPS N.V.
(2) Content of acquired businesses : Lifestyle Entertainment Business(Note) The Lifestyle Entertainment Business involves the development and design, sales and (partial) manufacture of thePHILIPS‐brand Audio Video Multimedia products, Home Communication products and Accessories products.

2. Reasons for Acquiring the Shares
The Transaction to assume the operation will enable the Funai Group to expand the lineup of products that it handles
and expand its sales region to include Asia, South America and other emerging markets, as well as advanced countries
in Europe. Funai decided to acquire shares in the New Company, based on the belief that the acquisition would foster
sustained growth of the Funai Group's business.
3. Acquisition price and percentage of shares held after acquisition
Acquisition price : €150 million
Percentage of shares held after acquisition : 100%
(Consolidated statement of Income)Note 1. Loss on liquidation of subsidiaries and affiliates
First Quarter Consolidated Fiscal Period – Year to Date (April 1, 2015 to June 30, 2015)
The Group has recorded the estimated amount of losses in connection with a resolution to liquidate Funai India Private
Limited, a consolidated subsidiary of the Group.

(Information by Segment)[Segment Information]
Ⅰ. First Quarter Consolidated Fiscal Period – Year to Date (April 1, 2014 to June 30, 2014)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment
Japan
Net Sales(1) Outside customers

Americas

Asia

Europe

Total(Units: Million Yen)
Adjustments Consolidated(Note 1)
(Note 2)(2) Inter‐segment sales

12,58523,321

28,886220

1,033
26,224562－

43,06749,766－(49,766)

43,067－

Total

35,907

29,10627,257562

92,834(49,766)

43,067

(640)

(957)

(134)

(58)

(1,791)(315)(2,106)

Segment Income (Loss)

Note: 1. JPY ‐315 million adjustment amount under segment loss includes items such as the JPY‐5 million relating to thecancellation of inter‐segment transactions, JPY ‐189 million of overall Group expenses that are not apportioned to eachreporting segment, and the JPY ‐120 million adjustment relating to inventory assets. Overall Group expenses arecomprised of general administrative expenses that do not belong to a specific reporting segment.
2. Segment loss has been adjusted to operating loss noted on the first quarter consolidated income statement.

Ⅱ. First Quarter Consolidated Fiscal Period – Year to Date (April 1, 2015 to June 30, 2015)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment
Japan
Net Sales(1) Outside customers

Americas

Asia

Europe

Total(Units: Million Yen)
Adjustments Consolidated(Note 1)
(Note 2)(2) Inter‐segment sales

8,486
27,22827,966277

971
19,872299－

37,72247,378－(47,378)

37,722－

Total

35,71428,243

20,843299

85,101(47,378)

37,722

Segment Income (Loss)(2,486)(1,137)

(438)

(62)

(4,125)(185)(4,310)Note: 1. JPY ‐185 million adjustment amount under segment loss includes items such as the JPY ‐1 million relating to thecancellation of inter‐segment transactions, JPY ‐206 million of overall Group expenses that are not apportioned to eachreporting segment, and the JPY 21 million adjustment relating to inventory assets. Overall Group expenses are comprisedof general administrative expenses that do not belong to a specific reporting segment.
2. Segment loss has been adjusted to operating loss noted on the first quarter consolidated income statement.

from 2015.4.1
to 2015.6.30
Page
1. Summary of 1Q Financial Statements (Consolidated)(1) Operating Results, Financial Conditions ･････････････････････････････

１(2) Profitability and Per Share Data etc. ････････････････････････････････

１(3) Capital Expenditures, Depreciation, R&D Expenses ･･････････････････

１(4) Cash Flow ････････････････････････････････････････････････････････

２

2. Operating Activities (Consolidated)(1) Slaes by Equipment ･･･････････････････････････････････････････････

２(2) Sales by Area in Equipment ････････････････････････････････････････

３(3) Sales by Equipment in Areas ･･･････････････････････････････････････

３

１．Summary of 1Q Financial Statements (Consolidated)(1) Operating Results, Financial Conditions（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

FY 2014
1Q
AmountFull‐Year%%

Change Amount

1Q%

Change Amount%

Change Amount

ChangeNet Sales

430

100.0

(14.8)

2170

100.0

(7.2)

377

100.0

(12.4)

2,200

100.0

1.3

Operating Income (Loss)

(21)

(4.9)

－

5

0.3

－

(43)

(11.4)

－

16

0.7

183.5

Ordinary Income (Loss)Net Income(Loss)
attributable toowners of parent
Total Assets

(24)

(5.7)

－

19

0.9

－

(37)

(9.9)

－

12

0.5

(37.6)

(23)

(5.4)

－

13

0.6

－

(40)

(10.7)－

4

0.2(70.5)

1,763

－

－

1,896

－

－

1,857

－

－

－

－

－

Net Assets

1,140

－

－

1,278

－

－

1,236

－

－

－

－

－

（※） Yen‐Dollars / Exchange rate
（Units : Yen / Dollars）
FY 2014

FY 2015

1Q

1Q

Full‐Year

Average Rate in each Period

101.87

Full‐Year (Projections)118.00121.72110.62(2) Profitability and Per Share Data etc.
FY 2014

FY 2015

1Q
Gross Profit Ratio

1Q

Full‐Year

（％）

15.1

17.3

14.8

Full‐Year (Projections)
16.2

Operating Income Ratio （％）

(4.9)

0.3

(11.4)

0.7

Ordinary Income Ratio （％）

(5.7)

0.9

(9.9)

0.5

64

66.8

65.9

－

Net Assets Per Share（yen）

3307.733712.813588.10－Net Income(Loss) Per
Share

（yen）

(68.34)39.70(118.38)

11.7

Return on Assets

（％）

(1.2)

0.7

(2.2)

－

Return on Shareholders' Equity （％）

(2.0)

1.1

(3.2)

－

Shareholders' Equity Ratio （％）(3) Capital Expenditures, Depreciation, R&D Expenses（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

FY 2014
1Q
AmountChange11

Capital Expenditures

1Q

Full‐Year
Amount(84.7)

Change32

Amount(70.6)

Change4(6.3)

FY 2015
Full‐Year%

Change30(63.6)FY 2014
1Q
AmountAmountChange Amount%

1Q
Change AmountFull‐Year (Projections)%

Change Amount%

ChangeDepreciation Expenses

11

2.6

(15.4)

47

2.2

(9.6)

10

2.7

(9.1)

47

2.1

0.0

R&D

16

3.7

(27.3)

74

3.4(11.9)

21

5.6

31.3

96

4.4

29.7

－1－

(4) CashFlow（Units : 100 million yen）
FY 2014

FY 2015

1Q

Full‐Year

1Q

Full‐Year (Projections)

Cash flows provided by operating activities

(37)

168

(136)

－

Income Before Income Taxes

(22)

22

(41)

－

Depreciation Expenses

14

58

13

－

Others

－

(29)

88

(108)

Cash flows used in investing activities

(10)

(173)

108

－

Free cash flows

(47)

(5)

(28)

－

Cash flows provided by financing activities

14

(27)

(2)

－

(3)

25

(4)

－

(35)

(6)

(34)

－

Effect of exchange rate changes oncash and cash equivalents
Net increase in cash and cash
equivalents

2．Operating Activities (Consolidated)(1) Sales by Equipment（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

FY 2014
Full‐Year

1Q
AmountAudio Visual Equipment
DVD%

Change Amount%

1Q
Change Amount%

Change Amount%

Change296

68.7(22.1)

1,724

79.4

(5.9)

311

82.3

4.9

1,913

87.0

11.0

27

6.2

(37.2)

124

5.7(28.7)

31

8.2

16.5

84

3.8

(32.3)

BD

22

5.1

(47.6)

135

6.2(20.1)

24

6.3

10.2

130

5.9

(3.7)

LCD TV236

54.9(17.5)

1,421

65.5

(1.1)

251

66.5

6.2

1,649

75.0

16.0

Others

11

2.5

37.5

44

2.0

(17.0)

5

1.3(61.4)

50

2.3

13.6

Information Equipment

57

13.3

17.8

126

5.8

(33.1)

15

4.1(73.1)

100

4.5(21.0)

Others

77

18.0

0.8

320

14.8

0.1

51

13.6

(33.7)

187

8.5(41.7)

Total

430

100.0

(14.8)

2,170

100.0

(7.2)

377

100.0

(12.4)

2,200

100.0

1.3

－2－

(2) Sales by Areas in Equipment（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

FY 2014
1Q
AmountAudio Visual Equipment

Full‐Year%%

Change Amount

1Q
Change Amount%

Change Amount%

Change296

68.7(22.1)

1,724

79.4

(5.9)

311

82.3

4.9

1,913

87.0

11.0

Americas

258

59.9

(19.1)

1,506

69.4

(4.1)

264

69.9

2.3

1,685

76.6

11.9

Europe6

1.4(25.0)

35

1.6

9.4

1

0.4

(83.3)

25

1.1(28.6)

Asia and Others

1

0.2

－

5

0.2

(58.3)

1

0.2

0.0

12

0.6

140.0

Japan

31

7.2

(39.2)

178

8.2(18.0)

45

11.8

45.2

191

8.7

7.3

Information Equipment

57

13.3

17.8

126

5.8

(33.1)

15

4.1(73.1)

100

4.5(21.0)

Americas

42

9.8

31.3

92

4.2

(27.0)

13

3.5(69.0)

72

3.3(21.7)

Europe

11

2.6

－

26

1.2

(42.2)

2

0.5(81.8)

11

0.5(57.7)

Asia and Others

4

0.9

－

8

0.4

(50.0)

00.1(100.0)

16

0.7

100.0

Japan

0

0.0

－

0

0.0

－

0

0.0

－

1

0.0

－

Others

77

18.0

0.8

320

14.8

0.1

51

13.6

(33.7)

187

8.5(41.7)

Total

430

100.0

(14.8)

2,170

100.0

(7.2)

377

100.0

(12.4)

2,200

100.0

1.3

(3) Sales by Equipment in Areas（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

FY 2014
1Q
AmountAmericas

1Q

Full‐Year%

Change Amount%

Change Amount

336

78.1

(12.7)

1,766

81.4

Audio Visual Equipment

258

59.9

(19.1)

1,506

Information Equipment

42

9.8

31.3

92

Others

36

8.4

5.9

Europe%Change Amount%

Change(13.5)

1,794

81.5

69.9

2.3

1,685

76.6

11.9

3.5

(69.0)

72

3.3(21.7)

14

3.7(61.1)

37

1.6(78.0)

(4.5)

291

77.1

69.4

(4.1)

264

4.2

(27.0)

13

168

7.8

9.1

1.6

17

4.0

(10.5)

61

2.8(20.9)

3

0.9(79.9)

36

1.6(41.5)

Audio Visual Equipment

6

1.4(25.0)

35

1.6

9.4

1

0.4

(83.3)

25

1.1(28.6)

Information Equipment

11

2.6

－

26

1.2

(42.2)

2

0.5(81.8)

11

0.5(57.7)

Others

0

0.0

－

0

0.0

－

0

0.0

－

－

－

－

6

1.4

－

21

1.0

(34.6)

4

1.0(37.4)

28

1.3

32.7

Audio Visual Equipment

1

0.2

－

5

0.2

(58.3)

1

0.2

0.0

12

0.6

140.0

Information Equipment

4

0.9

－

8

0.4

(50.0)

00.1(100.0)

16

0.7

100.0

Asia and Others

1

0.3

－

8

0.4

100.0

3

0.7

200.0

－

－

－

71

16.5

(25.3)

322

14.8(15.5)

79

21.0

11.5

342

15.6

6.3

31

7.2

(39.2)

178

8.2(18.0)

45

11.8

45.2

191

8.7

7.3

Information Equipment

0

0.0

－

0

0.0

－

－

－

－

1

0.0

－

Others

40

9.3

(4.8)

144

6.6

(11.1)

34

9.2(15.0)

150

6.9

4.2

430

100.0

(14.8)

2,170

100.0

(7.2)

377

100.0

(12.4)

2,200

100.0

1.3

OthersJapan
Audio Visual Equipment

Total

－3－

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / RELATIONS OFFICE
7‐7‐1 Nakagaito Daito‐city, Osaka 574‐0013, JapanTEL 81‐72‐870‐4395 ･ FAX 81‐72‐870‐4613