Presentation of Financial Results
First Half (Apr.-Sep.) of FY2018

November 13, 2018

FUNAI ELECTRIC CO.,LTD.
TSE

6839

1

Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Summary of 2nd Quarter (Jul.-Sep.)
Summary of First Half (Apr.-Sep.)
Summary of First Half (Apr.-Sep.)
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Breakdown of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures21. Summary of 2nd Quarter (Jul.-Sep.)〈100 million yen〉

FY20172Q

FY20182QNet Sales

401251

Operating Income-17-4(-4.3%)(-1.6%)-14

7(Margin)(-3.7%)(2.9%)Net Income Attributable toowners of parent-115

6(Margin)(-28.9%)(2.7%)

111.16111.88(Margin)

Ordinary Income

Average USD-JPY Exchange Rate

Month End
USD-JPY
Exchange Rate

Difference(Y / Y)-150(-37.4%)+13+21+121

Jun.2017

Sep.2017

Jun.2018

Sep.2018

112.00112.73110.54113.573

2. Summary of First Half (Apr.-Sep.)〈100 million yen〉

FY2017 FH
Actual

FY2018 FH
Forecast

FY2018 FH
ActualNet Sales

721450467

Operating Income-40-24-16(Margin)(-5.6%)(-5.3%)(-3.5%)

Ordinary Income-36-25-2(Margin)(-5.1%)(-5.6%)(-0.4%)-130-23

6(-18.1%)(-5.1%)(1.4%)

111.29105.00110.70Net Income Attributable toowners of parent(Margin)Average USD-JPY
Exchange Rate
Month End
USD-JPY
Exchange Rate

Mar.2017

Sep.2017

Mar.2018

Sep.2018

112.19112.73106.24113.57

Difference(Y/Y)

Difference(Forecast)-254+17(-35.2%)(103.8%)+24+8＋34+23+136+2943. Summary of First Half (Apr.-Sep.)〈100 million yen〉

FY2017 FH
Actual

FY2018 FH
Actual-40-16＋24731518-2-36-2＋342
10000-2-100-134-2＋132-4-8-4-130

6＋136

Operating income
Non-operating income
Non-operating expenses（note:1）

Ordinary Income
Extraordinary income
Extraordinary losses（note:2）

Income before Income Taxes
Income taxes

Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)

FY2017 FH

Difference(Y / Y)(note:2 Extraordinary income and losses)

FY2017 FH

FY2018 FH

FY2018 FH

12120010040-1

Interest income

InterestForeignPayments

exchangeOthers

20

Extraordinary income

0
Extraordinary losses

gain and loss

5

4. Breakdown of Sales by Equipment
AV Equipment: Decreased due to the effect of distribution inventory adjustment in North America.

Info Equipment: Almost flat due to decreased inkjet printers and increased commercial inkcartridges.
〈100 million yen〉

721

AV Equip467
AV Equipment685
DVD：101
T V ：584

Y/Y（Change）-265(-38.7%)DVD Equip-36(-35.5%)

TV Equip-229(-39.2%)

Information Equip+0(＋2.6%)

Others＋11(＋61.1%)

Total-254(-35.2%)

Sales Composition420
DVD： 65
T V ：355

OthersInformation

2%DVD
3% 14%

OthersInformation

6%4%

DVD14%

Information
Equipment
Others19171928

FY2017 FH

FY2018 FH

FY2017

TV

81%

FY2018

T V 76%6

5. Sales of DVD related Equipment Decreased, demand changed by rapid spread of Video streaming service such as theinternet and sales of new products into the Japanese market were one month behindlast year.
〈100 million yen〉

101
Y/Y（Change）
BD Recorders

516539BD Players31DVD14Others

563

FY2017 FH

FY2018 FHBD Recorders-12(-23.5%)

BD Players-14(-47.8%)

DVD-8(-53.8%)

Others-2(-28.9%)

Total-36(-35.5%)177

6. Sales of LCD related Equipment Decreased new sales of TV due to the continuance of the distribution inventory
adjustment phase of the North American market.
〈100 million yen〉

584
Y/Y（Change）

355
LCD TVLCD TV-229(-39.2%)584
355

FY2017 FH

FY2018 FH87. Sales of Information Equipment
 Almost flat , Sales of inkjet printers of unprofitable products were narrowed down,but sales increased due to sales of coupon printers and increased sales of commercial
ink cartridges.
〈100 million yen〉

1919

Y/Y（Change）

0
Inkjet printers
Laser printers
Coupon printers

Ink-cartridges

4521

12

FY2017 FH

14

Inkjet printers-4(-93.2%)

Laser printers-2(Coupon printers＋4(＋556.1%)

Ink cartridges+2(＋14.7%)

Total＋0(＋2.6%)-)

FY2018 FH
98. Geographic Breakdown of Sales
 Americas: Overall North American markets were in excess inventory. Therefore salesof LCD TVs declined due to sluggish growth in our new sales.
 Japan: Decreased, Sales of new products were one month behind last year.
〈100 million yen〉

721

Y/Y（Change）
Americas-220(-41.9%)0(-32.9%)

Asia & Others＋6(＋98.7%)

Japan-40(-20.7%)

Total-254(-35.2%)Europe467
Americas523
Sales Composition

303
EuropeAsia &Others
Japan

25191

FY2017 FH

2Japan

27%

Japan

32%

11151

FY2018 FH

Asia & 1%
Others

FY2018FY2017

Americas72%

Asia &Others
3%

Americas65%109. Operating Income Analysis (Y/Y)

〈100 million yen〉

Y / Y (Change)
FY2017 FH

FY2018 FH
OperatingOperatingLoss

Decrease of

LossGeneral-16

Expenses-40+30Sales
Decrease
Increased of-14

Add-value+811

10. Balance Sheet Conditions
Y/Y（Change）〈100 million yen〉

1,123

AssetsLiabilitiesAnd
Net Assets

Cash / Deposit

342

Accounts
Receivables

164

Inventories

452

Fixed Assets
and Others

165

Trade Payables

279

Accounts Payables
and Others

216

Net Assets

628

+51

・Cash / Deposit

+44

802

853

323

367

・Accounts Receivables

-19

99
236

80
256

・Inventories

+20

144
118
177

150
182
144

507

527

802

853

1,123

Sep.2017

AssetsMar.2018

・Fixed Assets andOthers+6Liabilities+31

・Trade Payables+64

・Accounts Payables
and Others-33

Net Assets+20（Equity Ratio

61.7%）

Sep.201812

11. Inventories Trends
Y / Y (Change)<Inventories Turnover period in months>

2.2

2.2

4.1

2.6

442

299

Finished products

198

268

262

215

101
Sep.2016： - 141

Work in process： - 55

3.4

2.6

3.3

75
Dec.2016

253

154
199

108
Mar.2017

Jun.2017

3.1

3.1

319

185
193

〈100 million yen〉

452

236

227
Work in process

Finished products

Sep.2017

134

Dec.2017

221

256
112

132

118

104

103

Mar.2018

Jun.2018

144

Sep.2018

13

12. Capital Expenditures, Depreciation Expense and R&D Expenditures

Full YearFirst Half
CapitalInvestment

Depreciation

R&D

Y/Y-2

Y/Y-10

Y/Y-4

CapitalInvestment〈100 million yen〉

7030603225285020401530

10108

FY2017 FY2018

FH

FY2017 FY2018

FHFH

211917306264201310FH

R&D〈100 million yen〉

355Depreciation

70
FY2017 FY2018

FHFH

FY2017 FY2018（Forecast）

FY2017 FY2018（Forecast）

FY2017 FY2018（Forecast）

14

Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography

161. Quarterly Financial Summary of FY 2017 - 2018〈100 million yen〉

FY2017

Net Sales

FY2018

1Q

2Q

3Q

4Q

1Q

2Q

320

401366214216251

Operating Income-23-17-18-50-12-4( Margin )(-7.3%)(-4.3%)(-5.0%)(-23.4%)(-5.7%)(-1.6%)

Ordinary Income-21-14-22-60-97( Margin )(-6.7%)(-3.7%)(-6.1%)(-28.3%)(-4.2%)(2.9%)Net Income Attributableto owners of parent-15-115-24-92-06( Margin )(-4.7%)(-28.9%)(-6.6%)(-43.1%)(-0.1%)(2.7%)

111.41111.16112.73107.46109.53111.88Average USD-JPY
Exchange Rate17

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others〈100 million yen〉

40136651

32051

50

251328
299

256

214

216

3335

158

154

30

201

77121079716

10
17

911

1Q

2Q

3Q

4Q

1Q

2Q

FY2017FY201818

3. Quarterly Sales Trends by Geography
Americas

EuropeAsia & OthersJapan〈100 million yen〉

401366320251304277219214216163

111499

2292

85

1Q

2Q

3Q
FY201714314017631966

854Q

1Q

2Q

12FY2018
19Disclaimer

This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that these statements
are based on information relating to factors that may impact future businessperformance that was available for analysis at the time this document was printed.
These factors include industry trends relating to the business areas of Funai Electric Co.,
Ltd. or the Funai Group, such as audio-visual devices and information communicationequipment, the economic conditions of both domestic and international markets, andfluctuations in currency exchange rates. Actual performance may greatly differ fromprojections included in this document because of the impacts of uncertainty in suchareas as the competitive conditions of the electronics industry, market trends, currency
exchange rate, introduction and success of new products, and various other global
conditions that may affect the tax system and other systems.

20