From April 1, 2014
To June 30, 2014

August 4, 2014
Funai Electric Co., Ltd.

First Quarter (April‐June) Consolidated Financial Summary
for the Period Ending March 2015
(Million yen)Previous Year First Quarter

Current Year First Quarter

From April 1, 2013
to June 30, 2013

From April 1, 2014
to June 30, 2014

Amount%AmountRate ofincrease or
decrease

%

%

%

%

Net Sales

50,520100.0

43,067100.0(14.8)

Operating Loss

(1,715)(3.4)(2,106)(4.9)－

Ordinary Income (Loss)

113

0.2

(2,462)(5.7)－

Income (Loss) before Income
Taxes

51

0.1

(2,292)(5.3)－

Net Loss

(18)

(0.0)

(2,331)(5.4)－

Net Loss per Share(0.54)(68.34)

Notes: Includes 21 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, 2014
August 4, 2014

Listed company name: Funai Electric Co., Ltd.

Securities Code: 6839 Tokyo Stock Exchange, First Section(URL http://www.funai.jp/ )Representative: President and CEO
Yoshikazu Uemura
Tetsuhiro Maeda
Inquiries: Director and Officer, Corporate Planning Division
Scheduled date of Quarterly Report; August 7, 2014
Scheduled date of Commencement of Annual Dividend Payment; －Quarterly Financial Results Supplementation: Yes
Quarterly Financial Results Seminar: Yes

TEL: (072) 870‐4395

1. First Quarter Consolidated Results for the Period Ending March 2015 (April 1, 2014 – June 30, 2014)(% denotes year on year)(1) Operating Results (Consolidated)

Ordinary Income
Net Income
Net Sales
Operating Income
Million yen%
Million yen %Million yen%
Million yen%
st(2,331)43,067(14.8)(2,106)(2,462)－－－
1 Quarter FY2014(18)
50,52026.2(1,715)113－－－
1st Quarter FY2013(Reference) Comprehensive Income 1st Quarter FY 2014 ended June 30, 2014 (2,936) million yen (－%)
1st Quarter FY 2013 ended June 30, 2013
2,447 million yen (－%)
Net Income
Per Share

Net Income Per Shareon a Fully Diluted Basis
Yen
－
－

Yen
st

(68.34)(0.54)

1 Quarter FY2014
1st Quarter FY2013(2) Consolidated Financial Positionst

1 Quarter FY2014
Fiscal Year 2013
(Reference) Equity

Net Assets
Total Assets
Million yen
Million yen
176,318
114,022
181,341
117,684
1st Quarter FY 2014 ended June 30, 2014
Fiscal Year 2013 ended March 31, 2014

Equity Ratio
%
64.0
64.2
112,857 million yen
116,509 million yen

2. Dividends
Dividend per Sharest

1 Quarternd

2 Quarteryen
Fiscal Year 2013－

Fiscal Year 2014－

Fiscal Year 2014
(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 2014 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 2015 (April 1, 2014 ‐ March 31, 2015)(% denotes year on year)
Operating
Ordinary
Net Income
Net Sales
Net Income
IncomeIncomePer Share
Million yen%

Million yen %Million yen %Million yen %Yen93,700 (22.3) 500 (11.9)
400(81.5)
200(67.4)
5.86
Six months ending Sep.30.2014－
200,000 (14.5) 500 －
400
10
0.29
－
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, 2014; 36,130,796 shares
as of March 31, 2014; 36,130,796 shares
2. Number of shares of treasury stock as of June 30, 2014; 2,011,615 shares
as of March 31, 2014; 2,011,615 shares
3. The Average number of outstanding shares on June 30, 2014; 34,119,181 shareson June 30, 2013; 34,114,181 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 current fiscal term, the economy of the United States, which is the Funai Group’s
mainstay market, although the economy has recovered steadily, the improvement, has yet to stimulate consumer
spending. In Europe, although uncertainty remained due to the political unrest in Ukraine, keeping modest
economic growth. China is seen there have been increasing signs of a bottoming out over recent months. As forJapan, the economy experienced a rebound following the rush in demand leading up to the hike in the country’s
consumption tax.
As a result of the above factors, the Funai Group posted net sales of JPY 43,067 million, a 14.8% decrease
compared with the same period last year.
On the profit front, operating loss was JPY 2,106 million (the operating loss for the same period last year was JPY
1,715 million); ordinary loss was JPY 2,462 million (the ordinary income for the same period last year was JPY 113
million); and a net loss of JPY 2,331 million (the net loss for the same period last year was JPY 18 million).
As for the markets, in which Funai operates amid these conditions, Funai aims to improve profitability for LCD
TVs from screen size increases and higher value added features. Profitability improvement also came from selective
reduction of the range of purchased Audio Accessory items as well.
Segment conditions by location were as follows:i) Japan
Sales of Printers increased, but sales of Audiovisual Equipment recorded a huge drop due to decrease of
BD‐related products.
As a result, net sales were JPY 12,585 million, a decrease of 13.8% year by year. Our segment loss (operatingloss) was JPY 640 million (the operating loss for this segment for the same period last year was JPY 1,322
million).
ii) Americas
Revenues from Ink Cartridge, Audio and Accessories increased. On the other hand, LCD TVs significantly
decreased compared with the same period last year due to strong sales at a major mass Retailer. Additionally,
DVD‐related products also decreased due to sluggish market conditions last year.
As a result, net sales amounting to JPY 28,886 million, a decrease of 16.1% year by year. Our segment loss
(operating loss) was JPY 957 million (the operating income for this segment for the same period last year was
JPY 102 million).
(Notes)
Effective from the first quarter of the fiscal year under review, the Company has changed the name of a reportable segmentfrom the previous North America to Americas. This is a change of name only and has no impact on segment information.

iii) Asia
Net sales were JPY 1,033 million, an increase of 16.5% year by year due to a revenue growth in Ink Cartridges.
Our segment loss (operating loss) was JPY 134 million (the operating loss for this segment for the same period
last year was JPY 530 million).
iv) Europe
The Ink Cartridges contributed to sales and DVD‐related products came out of a slump, but LCD TVs sales
declined.
As a result, net sales down 9.5% year by year, to JPY 562 million, and an segment loss (operating loss) of JPY
58 million (operating loss for the same period last year was JPY 94 million).

Sales by product segment were as follows:i) Audiovisual Equipment
In the Audiovisual Equipment sector, unit price of LCD TVs increased by growing in screen size, but total sales
decreased compared with the same period last year due to strong sales at a major mass Retailer last year.
DVD‐related products declined due to sluggish market conditions.
As a result, net sales of this equipment were JPY 29,590 million, a decrease of 22.1% year by year.
ii) Information Equipment
In the Information Equipment sector, the revenue of printers and ink cartridges increased resulting in net salesof JPY 5,727 million, an increase of 17.8% year by year.
iii) Other Products
Net sales were JPY 7,749 million, an increase of 0.8% year by year on a revenue growth 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 5,022 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to an increase of JPY 5,532 million in merchandise and finished goods, and a decrease of JPY 3,588 million,
JPY 4,826 million and JPY 1,950 million in cash and deposits, notes and accounts receivable‐trade, raw materials andsupplies.
Total liabilities decreased by JPY 1,360 million as compared to the end of the previous consolidated fiscal year. Thiswas mainly due to the JPY 2,695 million increases in short‐term loans payable and decrease of JPY 4,423 million innotes and accounts payable‐trade.
Net assets decreased by JPY 3,661 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to a decrease of JPY 3,042 million and JPY 706 million in retained earnings and foreign currency translation
adjustment.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
We have not revised its consolidated operating results forecast released on May 12, 2014.
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) 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.
(2) Change in accounting policy(Application of accounting standard for retirement benefits)
Effective from the first quarter of the fiscal year under review, the Company has applied the provisions set forth in themain clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits (ASBJ Guidance No. 26, May 17,2012) and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May
17, 2012). As a result, the methods for calculating retirement benefit obligations and service costs have been revised in
the following respects: the method for attributing projected benefits to periods has been changed from thestraight‐line basis to the benefit formula basis, and the method for determining the discount rate has been changed
from a discount rate based on the average period until payment of estimated amount of retirement benefits to use asingle weighted‐average discount rate that reflects the periods until the expected payment of retirement benefits andthe amount of projected benefits for each period.
Application of the Accounting Standard for Retirement Benefits and Guidance on Accounting Standard for
Retirement Benefits conforms to the transitional treatment set forth in Paragraph 37 of the Accounting Standard for
Retirement Benefits, and the effect of changing the method for calculating retirement benefit obligations and service
costs was recognized by adjusting retained earnings at the beginning of the current first quarter.
As a result, net defined benefit assets and net defined benefit liabilities at the beginning of the current first quarter
increased by JPY 934 million and JPY 200 million, respectively, retained earnings increased by JPY 483 million, andminority interests decreased by JPY 11 million. The effect of this change on consolidated operating income and loss,
ordinary income and loss, and income and loss before income taxes for the current first quarter is immaterial.
(3) Additional Information(About anti‐tax haven law)
The Funai 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
haven system and the Hong Kong subsidiary’s income for the three fiscal years ended March 31, 2008 through 2010,
will be considered, and taxed as our income. We objected to these supplementary tax assessments, and filed apetition 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 24, 2012 indicating that our assertions had been
dismissed. We will continue to assert the validity of its arguments in the future.
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 2013
(As of March 31, 2014)

1st Quarter FY2014(As of June 30, 2014)ASSETS;
Current Assets
Cash and deposits

49,16745,579Notes and accounts receivable ‐ trade

37,68132,855Merchandise and finished goods

31,66537,198Work in process

1,182

1,497

Raw materials and supplies

16,427

14,477

Other

8,126

7,986

Allowance for doubtful accounts

(210)

(310)

144,041

139,284

Property, plant and equipment

21,905

21,667

Intangible assets

6,574

6,370

335

1,273

Other

8,780

8,017

Allowance for doubtful accounts

(296)

(294)

Total investments and other assets

8,819

8,996

37,30037,034

181,341

176,318

Notes and accounts payable ‐ trade32,94228,518

Short‐term loans payable

4,526

7,222

414

134

Provision

1,312

1,291

Other

14,497

14,737

Total current liabilities

53,692

51,903

Long‐term loans payable

6,121

5,968

Provision

1,088

1,081

775

954

Other

1,979

2,388

Total noncurrent liabilities

9,964

10,392

63,65662,296

Total current assets
Noncurrent Assets

Investments and other assets
Net defined benefit asset

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Income taxes payableNoncurrent Liabilities

Net defined benefit liability

TOTAL LIABILITIES(Units : Million Yen)
Fiscal year 2013
(As of March 31, 2014)

1st Quarter FY2014(As of June 30, 2014)

NET ASSETS;
Shareholders' equity
Capital stock

31,30731,307

Capital surplus

33,27233,272Retained earnings

93,19690,154

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

Total shareholders' equity

133,435

130,392672

757

Foreign currency translation adjustment(17,495)(18,201)

Remeasurements of defined benefit plans

(103)

(91)

(16,925)(17,535)

132

133

Minority interests

1,042

1,031

Total net asset

117,684

114,022

181,341

176,318

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 FY2013

1st Quarter FY2014( from April 1, 2013
to June 30, 2013)( from April 1, 2014
to June 30, 2014)

Net sales

50,52043,067

Cost of sales

43,20036,566Gross profit

7,320

6,501

Selling, general and administrative expenses

9,035

8,608

Operating income (loss)(1,715)(2,106)

Interest income

4730

Dividends income

14

89

1,899

－

Gain on investments in partnership

－

77

Other

30

62

1,991

260

Interest expenses

67

47

Share of loss of entities accounted for using equity metho

23

131

Foreign exchange losses

－

398

Other

71

38

Total non‐operating expenses

162

616

113

(2,462)Gain on sales of non‐current assets

046Gain on sales of shares of subsidiaries and associates

－

134

Other

－

1

Total extraordinary income

0183

Loss on disposal of non‐current assets

2

12Loss on valuation of investment securities

60－

Total extraordinary loss

63

12

Income (loss) before income taxes

51(2,292)

Income taxes

55

36

Income (loss) before minority interests(4)(2,328)

Minority interests in income

132

Net income (loss)(18)(2,331)

Non‐operating income

Foreign exchange gains

Total non‐operating income
Non‐operating expenses

Ordinary income (loss)
Extraordinary income

Extraordinary losses

(Consolidated Quartely Statement of Comprehensive Income)

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

1st Quarter FY2013

1st Quarter FY2014( from April 1, 2013
to June 30, 2013)( from April 1, 2014
to June 30, 2014)(4)(2,328)

100

85

2,325

(700)

Share of other comprehensive income of entities
accounted for using equity method

26

(6)

Remeasurements of defined benefit plans, net of tax

－

13

2,451

(607)

2,447

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

2,431(2,941)

Comprehensive income attributable to minority interests

15

4

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, 2014)
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.
Funai was presented with €171.8 million, statutory interest and arbitration costs as the amount of claim forcompensatory damages from Philips on May 20, 2014.
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 third 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 : €171.8 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 : A specific claimed amount has not been stipulated
As instructed by the arbitral tribunal, the Company will calculate the amount of damages
incurred and present a counterclaim against PHILIPS by October 2014.
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%

(Information by Segment)[Segment Information]
Ⅰ. First Quarter Consolidated Fiscal Period – Year to Date (April 1, 2013 to June 30, 2013)
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

14,59927,46334,4130886
33,824621
050,52061,288－(61,288)

50,520－Total

42,062

34,41334,710621

111,809(61,288)

50,520

Segment Income (Loss)(1,322)

102

(530)

(94)

(1,844)129(1,715)

Note: 1. JPY 129 million adjustment amount under segment loss includes items such as the JPY 0 million relating to the cancellationof inter‐segment transactions, JPY ‐197 million of overall Group expenses that are not apportioned to each reporting
segment, and the JPY 326 million adjustment relating to inventory assets. Overall Group expenses are comprised ofgeneral 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, 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.

2. Change a Reportable Segment(Application of Accounting Standard for Retirement Benefits)
Effective from the first quarter of the fiscal year under review, the Company has applied the provisions set forth in themain clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits (ASBJ Guidance No. 26, May 17,2012) and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May
17, 2012). As a result, the methods for calculating retirement benefit obligations and service costs have been revised in
the following respects: the method for attributing projected benefits to periods has been changed from thestraight‐line basis to the benefit formula basis, and the method for determining the discount rate has been changed
from a discount rate based on the average period until payment of estimated amount of retirement benefits to use asingle weighted‐average discount rate that reflects the periods until the expected payment of retirement benefits andthe amount of projected benefits for each period. The effect of this change is immaterial.
(Change the Name of a Reportable Segment)
Effective from the first quarter of the fiscal year under review, the Company has changed the name of a reportablesegment from the previous North America to Americas. This is a change of name only and has no impact on segment
information. Segment information for the current first quarter is presented using the revised segment name.

from 2014.4.1
to 2014.6.30
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 2014
Full‐Year (Projections)

FY 2013
1Q
AmountFull‐Year%%

Change Amount

1Q%

Change Amount

Change Amount%

ChangeNet Sales

505

100.0

26.2

2,340

100.0

21.9

430

100.0

(14.8)

2000

100.0

(14.5)

Operating Income (Loss)

(17)

(3.4)

－

(54)

(2.3)

－

(21)

(4.9)

－

5

0.3

－

Ordinary Income (Loss)

1

0.2

－

(22)

(1.0)

－

(24)

(5.7)

－

4

0.2

－

Net Income (Loss) after Tax

(0)

(0.0)

－

(67)

(2.9)

－

(23)

(5.4)

－

0

0.0

－

Total Assets

1,978

－

－

1,813

－

－

1,763

－

－

－

－

－

Net Assets

1,224

－

－

1,176

－

－

1,140

－

－

－

－

－

（※） Yen‐Dollars / Exchange rate
（Units : Yen / Dollars）
FY 2013

FY 2014

1Q

1Q

Full‐Year

Average Rate in each Period

100.4999.23

Full‐Year (Projections)100.00101.87(2) Profitability and Per Share Data etc.
FY 2013

FY 2014

1Q

Full‐Year

（％）

14.5

Operating Income Ratio （％）

Ordinary Income Ratio （％）

Gross Profit Ratio

Shareholders' Equity Ratio （％）

1Q

Full‐Year (Projections)
16.0

13.9

15.1

(3.4)

(2.3)

(4.9)

0.3

0.2

(1.0)

(5.7)

0.2

61.3

64.2

64.0

－

3,414.77

3,307.73－

Net Assets Per Share（yen）

3,556.38

Net Income Per Share（yen）(0.54)(197.70)(68.34)0.29

Return on Assets

（％）

(0.0)

(3.6)

(1.2)

－

Return on Shareholders' Equity （％）

(0.0)

(5.7)

(2.0)

－

(3) Capital Expenditures, Depreciation, R&D Expenses（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

FY 2013
1Q
AmountChange72

Capital Expenditures

1Q

Full‐Year
Amount800.0

Change109

Amount105.7

Change11(84.7)

Full‐Year%

Change(55.0)

49

FY 2014

FY 2013
1Q
AmountAmountChange Amount%

1Q
Change AmountFull‐Year (Projections)%

Change Amount%

ChangeDepreciation Expenses

13

2.6

30.0

52

2.2

30.0

11

2.6

(15.4)

58

2.9

11.5

R&D

22

4.4

(4.3)

84

3.6

(9.7)

16

3.7

(27.3)

84

4.2

－

－1－

(4) CashFlow（Units : 100 million yen）
FY 2013

FY 2014

1Q

Full‐Year

1Q

Full‐Year (Projections)

Cash flows provided by operating activities

(155)

(12)

(37)

－

Income Before Income Taxes

0

(56)

(22)

－

Depreciation Expenses

15

64

14

－

(170)

(20)

(29)

－

OthersCash flows used in investing activities

Free cash flows
Cash flows provided by financing activities

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

12

(27)

(10)

－

(143)

(39)

(47)

－

15

(46)

14

－

15

20

(3)

－

(112)

(66)

(35)

－

2．Operating Activities (Consolidated)(1) Sales by Equipment（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

FY 2013
Full‐Year

1Q
AmountAudio Visual Equipment
DVD%

Change Amount%

1Q
Change Amount%

Change Amount%

Change

379

75.2

18.4

1,831

78.2

17.6

296

68.7

(22.1)

1,574

78.7

(14.0)

43

8.5

13.2

174

7.4

(5.4)

27

6.2

(37.2)

1085.4(37.9)

BD

42

8.4

10.5

168

7.2

19.1

22

5.1

(47.6)

136

6.8(19.0)LCD TV

286

56.7

19.2

1,436

61.4

19.8

236

54.9

(17.5)

1,278

63.9

(11.0)

Others

8

1.6

60.0

53

2.2

60.6

11

2.5

37.5

52

2.6

(1.9)

Information Equipment

49

9.6

82.9

189

8.1

57.8

57

13.3

17.8

127

6.4

(32.8)

Others

77

15.2

45.4

320

13.7

31.6

77

18.0

0.8

299

14.9

(6.6)

Total

505

100.0

26.2

2,340

100.0

21.9

430

100.0

(14.8)

2,000

100.0

(14.5)－2－

(2) Sales by Areas in Equipment（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

FY 2013
1Q
AmountAudio Visual Equipment

Full‐Year%

ChangeAmount%1Q
ChangeAmount%ChangeAmount%Change

379

75.2

18.4

1,831

78.2

17.6

296

68.7

(22.1)

1,574

78.7

(14.0)

Americas

319

63.2

19.5

1,570

67.1

18.5

258

59.9

(19.1)

1,339

67.0

(14.7)

Europe81.7(42.9)

32

1.3(25.6)

6

1.4(25.0)

38

1.9

18.8

Asia and Others

1

0.2

－

12

0.5

140.0

1

0.2

－

15

0.7

25.0

Japan

51

10.1

27.5

217

9.3

17.9

31

7.2

(39.2)

182

9.1(16.1)

Information Equipment

49

9.6

82.9

189

8.1

57.8

57

13.3

17.8

127

6.4

(32.8)

Americas

32

6.3

190.9

126

5.3

96.9

42

9.8

31.3

89

4.5

(29.4)

Europe11

2.1 1000.0

45

2.0

136.8

11

2.6

－

30

1.5

(33.3)

Asia and Others

4

0.8(71.4)

16

0.7(48.4)

4

0.9

－

8

0.4

(50.0)

Japan

2

0.4

－

2

0.1

(60.0)

0

0.0

－

0

0.0

－

Others

77

15.2

45.4

320

13.7

31.6

77

18.0

0.8

299

14.9

(6.6)

Total

505

100.0

26.2

2,340

100.0

21.9

430

100.0

(14.8)

2,000

100.0

(14.5)(Note)
Effective from FY 2014, sales to Central and South America, which were previously included in the Asia and others , have been included in Americas. The segment
name North America has been changed to Americas.
Figures for FY 2013 have been restated accordingly.

(3) Sales by Equipment in Areas（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

FY 2013
Full‐Year

1Q
AmountAmericas

%

385

76.2

%

ChangeAmount

37.5

1,850

79.0

1Q
ChangeAmount

26.7

336

%

%

ChangeAmountChange78.1(12.7)

1,564

78.2

(15.5)

Audio Visual Equipment

319

63.2

19.5

1,570

67.1

18.5

258

59.9

(19.1)

1,339

67.0

(14.7)

Information Equipment

32

6.3

190.9

126

5.3

96.9

42

9.8

31.3

89

4.5

(29.4)

Others34

6.7 1600.0

154

6.6

116.9

36

8.4

5.9

136

6.7

(11.7)

Europe

19

3.8

26.7

77

3.3

24.2

17

4.0

(10.5)

68

3.4(11.7)

Audio Visual Equipment8

1.7(42.9)

32

1.3(25.6)

6

1.4(25.0)

38

1.9

18.8

Information Equipment11

2.1 1000.0

45

2.0

136.8

11

2.6

－

30

1.5

(33.3)

Others

0

0.0

－

0

0.0

－

0

0.0

－

0

0.0

－

6

1.2

(60.0)

32

1.4(17.9)

6

1.4

－

23

1.1

(28.1)

Asia and Others
Audio Visual Equipment

1

0.2

－

12

0.5

140.0

1

0.2

－

15

0.7

25.0

Information Equipment4

0.8(71.4)

16

0.7(48.4)

4

0.9

－

8

0.4

(50.0)

1

0.2

－

4

0.2

33.3

1

0.3

－

0

0.0

－

95

18.8

5.6

381

16.3

6.1

71

16.5

(25.3)

345

17.3

(9.4)

51

10.1

27.5

217

9.3

17.9

31

7.2

(39.2)

182

9.1(16.1)

Information Equipment

2

0.4

－

2

0.1

(60.0)

0

0.0

－

0

0.0

－

Others42

8.3(16.0)

162

6.9

(4.7)

40

9.3

(4.8)

163

8.2

0.6

505

100.0

26.2

2,340

100.0

21.9

430

100.0

(14.8)

2,000

100.0

(14.5)

OthersJapan
Audio Visual Equipment

Total(Note)
Effective from FY 2014, sales to Central and South America, which were previously included in the Asia and others , have been included in Americas. The segment
name North America has been changed to Americas.
Figures for FY 2013 have been restated accordingly.

－3－

（Company）

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