Presentation of Financial Results forthe 3rd Quarter (Apr.‐Dec.) of FY2015

February 8, 2016

FUNAI ELECTRIC CO., LTD.
TSE 68390Outline of Financial Results1.

Summary of 3rd Quarter(Oct.‐Dec.)2.

Summary of 3rd Quarter (Apr.‐Dec.)

3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Summary of 3rd Quarter (Apr.‐Dec.) (Ordinary Income, Net Income)Sales breakdown by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Sales of Information Equipment
Sales of Breakdown by Region
Operating Income Analysis
Financial Conditions
Transition of Inventories
Capital Expenditures, Depreciation Expense and R&D Expenditures11. Summary of 3rd Quarter (Oct.‐Dec.)(100 million yen)

FY 2014(Oct‐Dec.)

FY 2015(Oct.‐Dec.)

S a l e s577

462

Operating Income0‐25)(0.1%)(‐5.4%)

Ordinary Income

15‐24)(2.6%)(‐5.4%)Net Income Attributableto owners of parent

13‐21(2.3%)(‐4.7%)

N e t(((MMMaaarrr

gggiiinnn)

Average USD‐JPY
Foreign Exchange Rate

116.04

YoY Change
(%)

‐115
(‐19.9%)‐25‐39‐34121.44

Foreign Exchange Rate

Sep/14

Dec/14

Sep/15

Dec/15(USD/JPY)

109.45120.55119.96

120.612

2. Summary of 3rd Quarter (Apr.‐Dec.)（100 million yen）

3Q FY2014(Apr.‐Dec.)

3Q FY2015(Apr.‐Dec.)

S a l e s

1,735

1,330

Operating Income

13‐79)(0.8%)(‐6.0%)

Income42‐92)(2.5%)(‐6.9%)Net Income Attributableto ow ne rs o f p a re nt

39‐97(2.3%)(‐7.4%)

107.75

121.63N e t(Mar

Ordinary((MMaarrgggininin)

Average USD‐JPY
Foreign Exchange Rate
Foreign Exchange Rate

Mar/14

Dec/14

Mar/15Dec/15(USD/JPY)

102.92120.55120.17120.61YoY Change
(%)

‐405
(‐23.3%)‐92‐134‐136

3

3. Summary of 3rd Quarter (Apr.‐Dec.)(Ordinary Income, Net Income)（100 million yen）

3Q FY2014(Apr.‐Dec.)

3Q FY2015(Apr.‐Dec.)

YoY Change(%)

619‐28+14‐92‐134

128+10+844‐88‐132

59+439‐97‐13634
5

Non‐operating income
Non‐operating expenses

Ordinary Income

42

Extraordinary income
Extraordinary losses

20Income before Income Taxes
Income taxes

Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)(note:1)(note:2)(note:2 Extraordinary income and losses)
Extraordinary
incomeExtraordinary
losses

FY2014FY2015

OthersInterest
incomeDividends
incomeForeign exchange
gain and loss

4

4. Sales Breakdown by Equipment
 AV Equipment: Decreased due to the decrease of LCD‐TVs on holiday sales in the U.S.
and the intensification of competition in Mexico.
 Info Equipment: Decreased, We launched the in‐house ink‐jet Printers, but we could
not make up for a decline of LBP business.
 Others: Declined, Antennas and Audio Accessories.
（100 million yen）

YoY Change (%)

1,735

AV Equipment( ‐16.8% )DVD Equip. : ‐ 35 ( ‐ 14.4%)
LCD TV: ‐ 198 ( ‐ 17.3%)

1,330

Information Equipment :Others
AVEquipment: ‐ 233‐ 71( ‐63.1%):‐ 101 ( ‐42.3%):‐405 ( ‐23.3%)

1,385
D V D ： 243
LCD TV ：1,142

Total

1,152
Sales Composition

D V D ：208
LCD TV：944
OthersInformation
Equipment

113

Others237

Information
Equipment

DVD14% 14%7%

42136

3Q FY2014

3Q FY2015(Apr.‐Dec.)(Apr.‐Dec.)

FY2014
LCD TV

InformationEquipment

Others

3%FY2015
LCD TV65%DVD

10% 16%71%
55. Sales of DVD related Equipment DVD players increased due to the favorable sales of DVD‐VHS players
 Blu‐ray disc decreased, because the market has been shrinking.
（100 million yen）

243
DVD Players

48

208（100 million yen）

DVD Recorders

47

49
Blu‐ray disc

109
77Others

39
3Q FY2014(Apr.‐Dec.)

YoY Change (%)

57
DVD Players:+ 9 ( +18.8% )DVD Recorders:+ 2 ( + 4.3% )Blu‐ray disc:‐ 32 ( ‐ 29.2% )Others:‐ 14 (‐ 35.9% )Total:‐35 ( ‐ 14.4% )25
3Q FY2015(Apr.‐Dec.)
6

6. Sales of LCD Televisions
 Decreased, due to the decrease of LCD‐TVs on holiday sales in the U.S., theintensification of competition in Mexico and the delay of inventory reduction.
（100 million yen）

1,142944
YoY Change (%)

LCD TVsLCD TVs:‐198 ( ‐17.3% )1,142944

3Q FY2014(Apr.‐Dec.)

3Q FY2015(Apr.‐Dec.)

77. Sales of Information Equipment Decreased, We launched the in‐house ink‐jet Printers, but we could not make up
for a decline of LBP business.
（100 million yen）

113

YoY Change (%)
LCD TVs

Information
Equipment:‐71 ( ‐63.1% )42(Apr.‐Dec.)(Apr.‐Dec.)

88. Sales Breakdown by Region
 Americas: Increased DVD‐related products, Decreased LCD TVs and Audio Accessories
 Japan: Increased LCD TVs, but Decreased Printers and DVD,BD‐related products（100 million yen）

YoY Change (%)

1,735
1,330
Americas

Americas: - 356( - 24.9% )Europe: - 33

( - 70.8% )Asia & Others :-8( - 46.2% )Japan-8( - 3.3% ): - 405( - 23.3% )

Total

1,428
1,072

EuropeAsia & Others
Japan:4717243
3Q FY2014(Apr.‐Dec.)

149235

Sales Composition
Asia &Others

Japan

Europe1% 14%3%Japan
Asia &18%
Others
1%Europe

FY2014
Americas82%1%

FY2015

Americas80%

3Q FY2015(Apr.‐Dec.)
99. Operating Income Analysis＊ Add‐value=Sales – (Cost of sales + selling expenses)

FY2014 vs FY2015（100 million yen）

Operating
IncomeDeclined
add‐value*
OperatingLossSalesdeclined

Increase ofgeneralexpenses

3Q FY2014

3Q FY20151010. Financial Conditions（100 million yen）

1,869

1,896

1,820

AssetsCash / Deposit

AssetsComparison to Dec. 2014

‐ 49

・Cash / Deposit‐33

Accounts
Receivables

・Accounts Receivables‐79

Inventories

・Inventories+111

・Fixed Assets and Others‐48

Fixed Assets
and Others
Trade Payables
Accounts Payables
and Others

Liabilities
AndNet Assets

Net Assets

1,869

1,896

1,820

Dec. 2014

Mar. 2015

Dec. 2015

Liabilities+86

・Trade Payables‐19

・Accounts Payables
and Others+105

Net Assets‐135（ Equity Ratio

63.6%）

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11. Transition of Inventories（100 million yen）

488
425

Comparison to Dec. 2014

377
264

Finished products

335

264

Work in process

113
Dec. 2014

161

153

Mar. 2015

Dec. 2015

2.9 months

3.2 months

Finished products: + 71Work in process: + 40<Inventories Turnover>2.0 months

1212. Capital Expenditures, Depreciation Expense and R&D Expenditures
3Q (Apr.‐Dec.)
CapitalExpenditures

Depreciation
ExpenseFull Year
CapitalExpenditures

R&D
Expenditures（100 million yen）

Depreciation
Expense

R&D
Expenditures（100 million yen）

Difference Y/Y

Difference Y/Y

Difference Y/Y‐12‐10+1100806091407447203242280

FY2014 FY2015

FY2014 FY2015

FY2014 FY2015

FY2014FY2015(Projection)

FY2014FY2015(Projection)

FY2014FY2015(Projection)

13

Appendix
1. Quarterly Operating Summary of FY 2014 / 2015
2. Quarterly Changes of Sales Amount by Equipment
3. Quarterly Changes of Sales Amount by Region14

1. Quarterly Operating Summary of FY2014 / 2015
（ 100 million yen ）FY2014FY2015

1Q

2Q

3Q

4Q

1Q

2Ｑ

3Q

S a l e s

430

728

577

435377491

462

Operating Income‐ 21340‐8‐ 43‐ 11‐25( m a r g i n )( ‐ 4.9%)(4.7%)( 0.1%)(‐ 1.9%)( ‐ 11.4%)(‐2.3%)(‐5.4%)

Ordinary Income‐ 2452

15

‐ 23‐ 37‐ 30‐24( m a r g i n )(‐5.7%)(7.1%)(2.6%)( ‐ 5.5%)( ‐ 9.9%)(‐6.1%)(‐5.4%)Net Income Attributableto owners of parent‐ 234913‐ 25‐ 40‐ 36‐21(margin)( ‐ 5.4%)(6.7%)(2.3%)( ‐ 5.9%)( ‐ 10.7%)(‐7.5%)(‐4.7%)

101.87105.34116.04119.23121.72121.72121.44

N e t

Average USD‐JPY
Exchange Rate

15

2. Quarterly Changes of Sales Amount by Equipment
DVD Equipment

LCD TVs

Information Equipment

Others（ 100 million yen ）

728
577
491
435

430

462

377

FY2014FY201516

3. Quarterly Changes of Sales Amount by Region
Americas（ 100 million yen ）EuropeAsia & Others

Japan

728

577
491
430

435

614

462

377
478
338

336

410

371

6
174

5482

2Q

3Q

291

17
671

18

12

14

690

582

479

3479

1Q

2Q

3Q

4Q

1Q

FY2014FY201517

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.

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