From April 1, 2015
To December 31, 2015

February 8, 2016
Funai Electric Co., Ltd.

Third Quarter (April‐December) Consolidated Financial Summary
for the Period Ended March 2016
(Million yen)

3rd Quarter FY2014

3rd Quarter FY2015

From April 1, 2014
to December 31, 2014

From April 1, 2015
to December 31, 2015

AmountAmount%%%Net SalesYear on Year
(%)

%

%

173,569100.0

133,087

100.0(23.3)

Operating Income (Loss)

1,392

0.8

(7,947)(6.0)－

Ordinary Income (Loss)

4,298

2.5

(9,239)(6.9)－

Net Income (Loss) before Taxes
and Other Adjustments

4,477

2.6

(8,875)(6.7)－

Net Income (Loss) attributableto owners of parent

3,940

2.3

(9,794)(7.4)－

Net Income (Loss) per Share
115.50(287.08)(yen)
Notes: Includes 23 consolidated subsidiaries, 1 non‐consolidated subsidiary of equity method,Member, Financial Accounting Standards Foundation

Consolidated Financial Results for the Third Quarter Ended December 31, 2015
February 8, 2016
Listed company name
Funai Electric Co., Ltd.
Stock exchange listing
Tokyo First Section
Securities code
6839
URL http://www.funai.co.jp
Representative
President and CEO
Tomonori Hayashi
Inquiries
General Manager
Keiichi Ikegami
TEL: (072) 870‐4395
Scheduled date of Quarterly ReportFebruary 10, 2016
Scheduled date of Commencement of Annual Dividend Payment －Quarterly Financial Results Supplementation
Yes
Quarterly Financial Results SeminarNo
1. Consolidated Financial Results for the Third Quarter Ended December 31, 2015 (April 1, 2015 – December 31, 2015)(% shows year on year rates)(1) Consolidated Operating Results

Net Sales

Net Income(Loss)

Operating

Ordinary

Income(Loss)

Income(Loss)

Net Assets

EquityMillion yen
117,007
127,881Million yen
115,874
126,677

attributable to ownersof parent
Million yen%
Million yen %Million yen%
Million yen%(9,794)133,087 (23.3)(7,947)(9,239)－－－3nd Quarter FY2015
4,298(10.5)
3,940
126.8
173,569 (6.4)
1,392
218.5
3nd Quarter FY2014
rd(Reference) Comprehensive Income 3 Quarter FY 2015 ended December 31, 2015 (9,573) million yen (－%)
3nd Quarter FY 2014 ended December 31, 2014 13,624 million yen(76.1%)
Net Income(loss)
Net Income(loss) Per SharePer Shareon a Fully Diluted BasisYen
Yen(287.08)－
3nd Quarter FY2015
115.50－
3nd Quarter FY2014(2) Consolidated Financial Position

As of December 31,2015
As of March 31,2014

Total Assets
Million yen
182,081
189,695

Equity Ratio
%
63.6
66.8

2. Dividends
Dividend per Sharestnd

1 Quarter

3rd Quarter2 Quarter

yen

yen

Fiscal Year 2014

－

0.00

Fiscal Year 2015

－

0.00

Year‐Endyen

Fiscal Year 2015
(Forecast)

Annual
yen

yen

－

35.00

35.00

－

－

－

rd

(Note) Revision of Annual Dividends Forecast in this 3 Quarter: No
The dividend for FY 2015 has been undecided. The company’s dividend policy of DOE is unchanged. Because of the highimpact stemmed from the recent fluctuations in exchange rates give to the consolidated net assets, the dividend is to bedisclosed at the time disclosure has become possible to public.

3. Consolidated Financial Forecast for the Fiscal 2015 (April 1, 2015 ‐ March 31, 2016)

Operating
Income(loss)

Net Sales
Million yen

Full Year

187,900 (13.4)%

Ordinary
Income(loss)

Million yen %(6,000)(Note) Revision to consolidated financial forecast: No－(% shows year on year rates)
Net Income(loss)
Net
Attributable to
Income(loss)
owners of parent
Per Share

Million yen %Million yen %－－(7,500)(9,500)Yen(278.44)

*Note(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): Yes
In (Company name: Funai North America, Inc.)
Out (Company name: －)(2) Adoption of special accounting methods of Quarterly consolidated financial statements: Yes(3) Changes in accounting policies and estimates
1. Changes in accounting policies from revision of accounting standards: Yes
2. Changes in accounting policies from other reason: 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)
2. Number of shares of treasury stock
3. The Average number of outstanding shares

As of December 31, 2015
As of March 31, 2015
As of December 31, 2015
As of March 31, 2015
On December 31, 2015
On December 31, 201436,130,796
36,130,796
2,011,687
2,011,665
34,119,122
34,119,181* 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(1) Consolidated Financial Results
On the Third Quarter Ended December 31, 2015 the economy of the United States continued to grow steadily
supported by a strong employment environment and housing market, although personal consumption was a little
bit weak. In Europe, the economy showed moderate recovery because of the consumer spending and theimprovement in unemployment rates. Chinese economy slowed down in the latter half of the fiscal year. In Japan,
the certain things such as the production and the exports stayed in a standstill due to the economic slowdown in
China, but the consumption remained firm, and the economy sustained a gradual recovery trend.
Under these conditions, Net sales amounted to ¥133,087million, down 23.3% compared to the same quarter of thelast fiscal year (year on year). The orders on holiday sales decreased, Sales in regional retail stores were slow, theinventory reduction caused delay, and Mexican market got more competitive. As a result, operating loss amounted
to ¥7,947 million (the same quarter of the last fiscal year: operating income of ¥1,392 million). Ordinary loss
amounted to ¥9,239million due to foreign exchange losses in accounts receivable from the depreciation of the
Mexican Peso against the U.S. dollar. (the same quarter of the last fiscal year: ordinary income of ¥4,298 million).
Net loss attributable to owners of parent amounted to ¥9,794million (the same quarter of the last fiscal year: net
income attributable to owners of parent of ¥3,940 million).
Funai Group’s (“the Group”) applied Accounting Standard for Business Combinations (ASBJ Statement No. 21,
September 13, 2013) in the first quarter of this fiscal year has changed “net loss” to “net loss attributable to ownersof the parent.”
Results by regioni) Japan
LCD TVs increased, because the reaction to the rush demand of consumption tax hike has already passed
through. However, printers, DVD,BD‐related products, and electronic reception devices decreased. As a result,net sales amounted to ¥25,557million, down 25.2% year on year, and segment loss (operating loss) amounted
to ¥1,582 million (the same quarter of the last fiscal year: segment loss of ¥521 million).
ii) Americas
DVD‐related products and sound‐bar increased year on year, but LCD TVs decreased due to the reduction of theorders on holiday sales in the U.S. The Group tried to make up for this decline by managing the regular business
transactions, but we could not. Sales in regional retail stores were slow, the inventory reduction caused delay,
Mexican market got more competitive, and Audio Accessories and Home Theater system decreased. As a result,net sales amounted to ¥104,091million, down 21.8% year on year, and segment loss amounted to ¥4,873
million (the same quarter of the last fiscal year: segment income of ¥2,136 million).
iii) Asia
Net sales amounted to ¥2,308 million, down 40.5% year on year due to decrease on ink cartridges. Segment
income (operating income) amounted to ¥419 million, up 865.5% year on year.
iv) Europe
The Group lunched printers in UK, but weak sales of LCD TVs and DVD‐related products continued. Net sales
amounted ¥1,130 million, down 53.8% year on year, and segment loss (operating loss) amounted to ¥346
million, (the same quarter of the last fiscal year: segment loss of ¥75 million).
Results by product Segmenti) Audiovisual Equipment
DVD‐related products increased year on year, but In addition to the decrease of BD‐related products, LCD TVs
decreased due to the reduction of the order on holiday sales in the U.S. Sales in regional retail stores were slow,
the inventory reduction caused delay, and Mexican market got more competitive. Therefore net sales ofaudiovisual equipment amounted to ¥115,216 million, down 16.8% year on year.
ii) Information Equipment
The Group lunched in house development ink‐jet printers, but we could not offset a shortage caused by theclosure of OEM business, then Printer and Ink cartridges decreased year on year. As a result, net sales ofinformation Equipment amounted to ¥4,173 million, down 63.1% year on year.
iii) Other Products
Net sales of other products amounted to ¥13,697 million, down 42.3% year on year, due to the decrease of
Audio accessories and Electronic reception devices.

(2) Consolidated Financial Position
Total assets decreased by ¥7,614 million compared to the end of the last fiscal year. The primary components of thechange were as follows: Increase of ¥7,101 million in raw materials and supplies Decrease of ¥9,511 million in cash and deposits, ¥2,937 million in notes and accounts receivable – trade, ¥792
million in merchandise and finished goods, and ¥1,550 million in property, plant and equipment.
Total liabilities increased by ¥3,260 million compared to the end of the last fiscal year. The primary components ofthe change were as follows:
Decrease of ¥13,072 million in note and accounts payable‐trade
Increase of ¥14,545 million in short‐term loans payable and ¥1,735 million in accounts payable included inother.
Net assets decreased by ¥10,874 million compared to the end of the last fiscal year. The primary components of thechange were decrease of ¥11,068 million in retained earnings and ¥399 million in the foreign currency translation
adjustment.

(3) Consolidated Financial Forecast
At the time of disclosure of this report, operating loss was ¥7,947 million, ordinary loss was ¥9,239 million, net
income attributable to owners of parent was ¥9,794 in the third quarter of this fiscal year. Each number has alreadyexceeded the consolidated financial forecast announced on November 9, 2015. (Operating loss was ¥6,000 million,
Ordinary loss was ¥7,500 million, and Net income attributable to owners of parent was ¥9,500 million.)
However, after examining the consolidated financial forecast based on information available at this time, the sales
forecast during this fourth quarter in the U.S. market and the cost reduction by the consolidation of sales
subsidiaries on October 2015, the performance is expected to change in this fourth quarter. As a result, the Groupdecided not to revise its consolidated financial forecast.
Actual results may differ from these forecasts due to various factors. Moreover, the forecasts and forward‐looking
statements recorded in this report are based on information available on the announcement and estimates basedon reasonable assumptions.
If it is necessary to revise this consolidated financial forecast, the Group will disclose those revisions immediately inaccordance with the disclosure standard.

2.Summary Information(1) Change in important subsidiaries.
In the third quarter of this fiscal year, the Group has included Funai North America, Inc. in the scope of
consolidation, as the result of its new establishment.
(2) Change in the scope of consolidation or equity method.
1) Change in the scope of consolidation
In the first quarter of this fiscal year, the Group has included DX ANTENNA PHILIPPINES, INC. in the scope of
consolidation, because its importance has increased. In addition, the Group has excluded FUNAI CMET Optical
Electronics Co., Ltd from the scope of consolidation in the second quarter of this fiscal year, as the result of its
liquidation.
2) Change in the scope of equity method
The Group has excluded CMET FUNAI Optical Electronics Co., Ltd from the scope of consolidation, because of thesale of shares held by the Group In the second quarter of this fiscal year.

(3) Adoption of special accounting methods of Quarterly consolidated financial statements
Tax expenses are calculated by multiplying income before income taxes by a reasonably estimated effective tax rate

for income before income taxes after application of deferred tax accounting.

(4) Change in the accounting policy(Application of “Accounting Standard for Business Combinations”)
The Group has applied in the first quarter of this fiscal year:
 “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).
This change had no effect on the consolidated statements of income.
(5) Additional Information(About anti‐tax haven law)
The Group received a reassessment 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 exemption under the anti‐tax havenrules. In addition, they imposed a tax on us adding up with the Hong Kong subsidiary’s income for the three fiscal
years ended March 31, 2008 through 2010, which deems as our income.
We objected to this reassessment of income taxes, and filed a request for examination to the Osaka National Tax
Tribunal on August 25, 2011. However, we received written verdicts that reject our petition on July18, 2012. The
Group filed a suit for cancellation of reassessment to the Tokyo District Court on January 17, 2013.
The additional tax amount is totally ¥825 million including corporate, enterprise and residence taxes (¥935 million
including incidental taxes). We recorded this additional tax as “prior year’s taxes” in the fiscal year ended March 31,
2012. Also, the financial impact, when applying this tax rules has been recorded in the fiscal year ended March 31,
2011 when tax investigation was completed.

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

3rd Quarter FY2015(As of December 31, 2015)

ASSETS;
Current Assets
Cash and deposits

66,82057,308Notes and accounts receivable ‐ trade38,18335,246Merchandise and finished goods

26,39833,500Work in process

1,455

1,404

Raw materials and supplies

14,70813,916

Other

7,598

8,041

Allowance for doubtful accounts

(389)

(532)

154,775

148,884

Property, plant and equipment

21,306

19,755Intangible assets

6,117

5,635

Net defined benefit asset

1,716

1,706

Other

6,055

6,658

Allowance for doubtful accounts

(276)

(289)

Total current assets
Noncurrent Assets

Investments and other assets

Total investments and other assets

7,496

8,075

34,92033,196

189,695

182,081

Notes and accounts payable ‐ trade

31,625

18,552

Short‐term loans payable

4,012

18,557

485

829

Provision

1,459

1,059

Other

13,796

15,599Total current liabilities

51,37854,598Long‐term loans payable

6,683

6,485

Provision

1,093

1,101

548

452

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Income taxes payableNoncurrent Liabilities

Net defined benefit liability
Other

2,110

2,436

Total noncurrent liabilities

10,435

10,47561,81365,074TOTAL LIABILITIESFiscal year 2014
(As of March 31, 2015)

3rd Quarter FY2015(As of December 31, 2015)

NET ASSETS;
Shareholders' equity
Capital stock

31,30731,307

Capital surplus

33,27233,301Retained earnings

93,84082,771

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

Total shareholders' equity

134,079

123,039421

226

Foreign currency translation adjustment(8,188)(7,788)Remeasurements of defined benefit plans

365

397

(7,401)(7,164)

142

144

1,061

988

127,881

117,007

189,695

182,081

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

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net asset
TOTAL LIABILITIES AND NET ASSETS

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statement ofComprehensive Income(Consolidated Quarterly Statements of Income)(Units : Million Yen)
3rd Quarter FY2014

3rd Quarter FY2015( from April 1, 2014
to December 31, 2014)( from April 1, 2015
to December 31, 2015)

Net sales

173,569

133,087

Cost of sales

143,307

111,504

Gross profit

30,262

21,582

Selling, general and administrative expenses

28,86929,530Operating income (loss)

1,392(7,947)

Interest income

130

165

Dividends income

107

23

2,763

－

Rent income on non‐current assets

156

164

Gain on investments in partnership

77

218

Other

175

26

3,410

599

Interest expenses

133

208

Equity in losses of affiliates

139

3

－

1,493

Other

231

184

Total non‐operating expenses

504

1,890

4,298

(9,239)Gain on disposal of noncurrent assets

49－

Settlement received－

Non‐operating income

Foreign exchange gains

Total non‐operating income
Non‐operating expenses

Foreign exchange loss

Ordinary income (loss)
Extraordinary income

Notes.1

902

Other

147

259

Total extraordinary income

196

1,161

Loss on disposal of noncurrent assets

18

349

Expenses incurred on business restructuring

－

Other

－

14

Total extraordinary loss

18

797

4,477

(8,875)

522

937

3,955

(9,812)

14

(17)

3,940

(9,794)Extraordinary loss

Income (loss) before income taxes
Income taxes
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss) attributable to owners of parent

Notes.2

434

(Consolidated Quarterly Statement of Comprehensive Income)

Income (loss) before minority interest adjustment(Units : Million Yen)

3rd Quarter FY2014

3rd Quarter FY2015( from April 1, 2014
to December 31, 2014)( from April 1, 2015
to December 31, 2015)

3,955(9,812)

101

(195)

9,541

420

Retirement benefits adjustment

26

34

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

0

(20)

9,668

238

13,624(9,573)Comprehensive income attributable to owners of parent

13,603(9,558)Comprehensive income attributable to minority interests

21

(15)

Other comprehensive Income
Valuation difference on avaiable‐for‐sale securities
Foreign currency translation adjustment

Total other comprehensive Income
Comprehensive income(Breakdown)(4) Consolidated Quarterly Statements of Income(Notes for Continuing Enterprises)
Not Applicable(Notes of remarkable changes in Shareholders Equity)
Not Applicable(Consolidated balance sheets)
Third quarter of the this fiscal year (As of December 31, 2015)
Contingent liabilities(Arbitration)
Funai Electric Co., Ltd. (“Funai”) resolved to acquire all shares in a company taking over PHILIPS’ LifestyleEntertainment Business from Koninklijke PHILIPS N.V. (“PHILIPS”). Funai concluded the share purchase agreement
on January 29, 2013. However, PHILIPS filed against Funai a petition for arbitration to recover damages caused bybreach of agreement of Funai as of October 25, 2013. Subsequently, they served the request of arbitration fromthe International Chamber of Commerce on November 8, 2013.
With regard to this matter, Funai recognizes there has been no breach of agreement on its behalf. Therefore, Funai
filed a counterclaim for damages caused by breach of the agreement and unlawful actions by PHILIPS to theInternational Chamber of Commerce on December 6, 2013.
On May 20, 2014, Funai received notice from PHILIPS of the amount of the claim for damages. Then Funai filed thestatement including the amount of compensatory damages claimed against PHILIPS to the International Court of
Arbitration on October 1, 2014.
After that, Funai received notice‐revised amount of compensatory damages claimed by PHILIPS on December 24,
2014 and September 1, 2015.
The results of these arbitral proceedings may affect consolidated financial results, but it is difficult to make areasonable estimate of this impact in this second quarter. Therefore, Funai cannot tell how this impact will affectthe business performance and financial conditions of the Group.
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:
International Chamber of Commerceii) Date:
October 25, 2013
(2) Petitioner of arbitrationi)Name:ii) Location:iii) Title & name :Koninklijke PHILIPS N.V.
Eindhoven, The Netherlands
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 :€183 million (based on the notice by PHILIPS on September 1,2015)
2. Outline of counterclaim filed by Funai(1) Institution with which counterclaim filed and date of filingi)
Institution:
International Chamber of Commerceii) Date:
December 6, 2013
(2) Other party to counterclaim filingi)
Name:
Koninklijke PHILIPS N.V.
Eindhoven, The Netherlandsii) Location:iii) Title & name:
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:€312.3M tax payable, contractual interest and 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
These transactions will enable the Group to expand the product portfolio and the sales network in Asia, SouthAmerica, other emerging markets, and Europe. Funai decided to acquire shares in this new company, basedon the belief that the acquisition would foster sustained growth of the Group.
3. Acquisition price and percentage of shares held after acquisition(1)Acquisition price:€150 million(2)Percentage of shares:
100%(Consolidated quarterly statements of income)*Notes.1 Settlement received
Third quarter of this fiscal year (April 1, 2015 to December 31, 2015)
The Group filed a lawsuit for a compensatory damage against Olympus Corporation due to Olympus’s
misstatements in its securities registration statement, etc. The Group recorded 902 million as settlement
received after deducting necessary expenses from the settlement money in connection with this settlement.
*Notes.2 Expenses incurred on business restructuring
Third quarter of this fiscal year (April 1, 2015 to December 31, 2015)
The Group has recorded the estimated losses connected with the liquidation of Funai India Private Limited, aconsolidated subsidiary of the Group.

(Information by Segment)[Segment Information]
I.

Third Quarter of the last fiscal year (April 1, 2014 to December 31, 2014)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment
Japan

Americas

Asia

Net Sales(1) Outside customers(2) Inter‐segment sales

34,153
99,832133,090703

3,876
106,746

2,447‐

173,569
207,282－(207,282)

173,569－

Total

133,986

133,794

110,6232,447

380,852(207,282)

173,569

(521)

2,136

43

(75)

1,583

(190)

1,392

Segment Income (Loss)

Europe

Total(Units: Million Yen)
Adjustments Consolidated(Note 1)
(Note 2)Note:
1. ¥‐190 million adjustment amount under segment income includes items such as ¥ 5 million relating to thecancellation of inter‐segment transactions, ¥ ‐556 million of overall Group expenses that are not apportioned toeach reporting segment, and ¥ 371 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 income has been adjusted to operating income noted on the third quarter consolidated income
statement.
II.

Third Quarter of this fiscal year (April 1, 2015 to December 31, 2015)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment(Units: Million Yen)
Total

Adjustments Consolidated(Note 1)
(Note 2)1,130‐

133,087
184,579－(184,579)

133,087－

84,1291,130

317,666(184,579)

133,087

419

(346)

(6,382)(1,564)(7,947)Japan

Americas

Asia

Net Sales(1) Outside customers(2) Inter‐segment sales

25,557
101,888

104,091
869

2,308
81,821

Total

127,446

104,960

Segment Income (Loss)(1,582)(4,873)

EuropeNote:
1. ¥‐1,564 million adjustment amount under segment income includes items such as the ¥2 million relating to thecancellation of inter‐segment transactions, ¥571 million of overall Group expenses that are not apportioned toeach reporting segment, and the ¥995 million adjustments relating to inventory assets. Overall Group expenses
are comprised of general administrative expenses that do not belong to a specific reporting segment.
2. Segment income has been adjusted to operating income noted on the third quarter consolidated income
statement.

(Business combination)
The Group established a regional head subsidiary “Funai North America, Inc.” on October 1, 2015 in accordance withthe resolution of the board of directors held on May 11, 2015. After that the Group executed contribution in kind of allshares of 2 consolidated subsidiaries held by the Group and acquired its shares.
1. Outline of business combination(1) Name and business of combine company
Combine company
Name:
Funai North America, Inc.
Business:
Management of subsidiaries in the North America
Combined company
Name:
FUNAI CORPORATION, INC.
Business:
Sales of electrical equipment
Name:
P&F USA, Inc.
Business:
Sales of electrical equipment(2) Date of business combination
November 5, 2015(3) Legal form of business combination
The Group executed contribution in kind of all shares of its subsidiaries to Funai North America, Inc.
(4) Other information
The Group aimed the strengthening of sales system and the improvement of efficiency in the North America. The
Group executed contribution in kind of all shares of FUNAI CORPORATION, INC. and P&F USA, Inc. held by theGroup to Funai North America, Inc.
2.

Outline of accounting policy
The Group treated this transaction as “a transaction under common control” in accordance with the “AccountingStandard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013) and the “Revised Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ
Guidance No.10, December 26, 2008).

from 2015.4.1
to 2016.12.31
Page
1. Summary of 3Q (April to December) 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

3. Summary of 3Q (October to December)Financial Statements(Consolidated)(1) Operating Results ･･････････････････････････････････････････････････

4(2) Sales by Equipment ･････････････････････････････････････････････････

4

１．Summary of 3Q (April to December) Financial Statements (Consolidated)(1) Operating Results, Financial Conditions
FY 2014
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountChange Amount

1,735

100.0

Operating Income (Loss)

13

0.8

Ordinary Income (Loss)

42

2.5

Net Sales

3Q (Apr. ‐ Dec.)%

Change Amount（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)%

Change

1879

100.0

(13.4)

Change Amount

2,170

100.0

(7.2)

1330

218.5

5

0.3

－

(79)

(6.0) －

(60)

(3.2)

－

(10.5)

19

0.9

－

(92)

(6.9) －

(75)

(4.0)

－

(6.4)

100.0

(23.3)

39

2.3

126.8

13

0.6

－

(97)

(7.4)

－

(95)

(5.1)

－

Total Assets

1,869

－

－

1,896

－

－

1,820

－

－

－

－

－

Net Assets

1,305

－

－

1,278

－

－

1,170

－

－

－

－

－

Net Income (Loss) after Tax（※） Yen‐Dollars / Exchange rate
FY 2014
3Q (Apr. ‐ Dec.)
Average Rate in each Period

Full‐Year110.62

107.75（Units : Yen / Dollars）
FY 2015
3Q (Apr. ‐ Dec.)
Full‐Year (Projections)
121.63119.86(2) Profitability and Per Share Data etc.
FY 2014
（％）

17.4

17.3

FY 2015
Full‐Year (Projections)
16.2
17.0

Operating Income Ratio （％）

0.8

0.3

(6.0)

(3.2)

Ordinary Income Ratio （％）

2.5

0.9

(6.9)

(4.0)

3Q (Apr. ‐ Dec.)
Gross Profit Ratio

3Q (Apr. ‐ Dec.)

Full‐Year

69.2

66.8

63.6

－

Net Assets Per Share（yen）

3,792.64

3,712.81

3,396.19－

Net Income Per Share（yen）

115.5039.70(287.08)(278.44)

Return on Assets

（％）

2.1

0.7

(5.3)

－

Return on Shareholders' Equity （％）

3.2

1.1

(8.1)

－

Shareholders' Equity Ratio （％）(3) Capital Expenditures, Depreciation, R&D Expenses
FY 2014
3Q (Apr. ‐ Dec.)
AmountChange28

Capital Expenditures

Full‐Year
Amount(71.7)

3Q (Apr. ‐ Dec.)

Change32

Amount(70.6)

Change16

Full‐Year%%

AmountChange Amount

3Q (Apr. ‐ Dec.)
Change AmountAmount(71.7)FY 2013
3Q (Apr. ‐ Dec.)（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)%

Change(66.1)

28

FY 2014
Full‐Year (Projections)

Change Amount%

ChangeDepreciation Expenses

35

2.0

(10.3)

47

2.2

(9.6)

25

1.9

(10.3)

42

2.2(10.6)

R&D

57

3.3

(10.9)

74

3.4(11.9)

58

4.4(10.9)

91

4.8

23.0

－1－

(4) CashFlow
FY 2014
3Q (Apr. ‐ Dec.)

Full‐Year（Units : 100 million yen）
FY 2015
3Q (Apr. ‐ Dec.)
Full‐Year (Projections)(230)－

Cash flows provided by operating activities

93

168

Income Before Income Taxes

44

22

(88)

－

Depreciation Expenses

43

58

34

－

6

88

(176)

－

Cash flows used in investing activities

(196)

(173)

(196)

－

Free cash flows

(103)

(5)

(103)

－

Cash flows provided by financing activities

(11)

(27)

(11)

－

29

25

13

－

(85)

(6)

(85)

－

Others

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

2．Operating Activities (Consolidated)(1) Sales by Equipment
FY 2014
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAudio Visual Equipment
DVD
BD
LCD TV

Change Amount

3Q (Apr. ‐ Dec.)
Change Amount%（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

Change Amount%

Change

1,385

79.8

(5)

1,724

79.4

(5.9)

1,152

86.6

(16.8)

1,660

88.3

(3.7)

95

5.5

(31)

124

5.7

(28.7)

106

7.9

11.6

131

7.0

5.6

109

6.3

(8)

135

6.2

(20.1)

77

5.8(29.4)

105

5.6(22.2)

1,142

65.8

(2)

1,421

65.5

(1.1)

944

71.0

(17.3)

1,388

73.8

(2.3)

39

2.2

5

44

2.0

(17.0)

25

1.9(35.9)

36

1.9(18.2)

Information Equipment

113

6.5

(24)

126

5.8

(33.1)

42

3.1(63.1)

47

2.5(62.7)

Others

237

13.7

(5)

320

14.8

0.1

136

10.3

(42.3)

172

9.2(46.3)

1,735

100.0

2,170

100.0

1,330

100.0

1,879

100.0

(13.4)

Others

Total

(6)

－2－

(7.2)

(23.3)

(2) Sales by Areas in Equipment
FY 2014
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAudio Visual Equipment

Change Amount

3Q (Apr. ‐ Dec.)
Change Amount%（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

Change Amount%

Change

1,385

79.8

(4.9)

1,724

79.4

(5.9)

1,152

86.6

(16.8)

1,660

88.3

(3.7)

Americas

1,222

70.4

(4.7)

1,506

69.4

(4.1)

1,008

75.7

(17.5)

1,469

78.1

(2.5)

Europe

23

1.3

(8.0)

35

1.6

9.4

6

0.5

(73.9)

7

0.4(80.0)

Asia and Others

5

0.3(50.0)

5

0.2(58.3)

2

0.1(60.0)

3

0.2(40.0)

135

7.8

(3.6)

178

8.2

(18.0)

136

10.3

0.7

181

9.6

1.7

113

6.5

(24)

126

5.8

(33.1)

42

3.1(63.1)

47

2.5(62.7)

82

4.7

(17)

92

4.2

(27.0)

32

2.4(61.0)

35

1.9(62.0)

Europe

24

1.4

(31)

26

1.2

(42.2)

8

0.5(66.7)

10

0.5(61.5)

Asia and Others

7

0.4

(42)

8

0.4

(50.0)

2

0.2(71.4)

2

0.1(75.0)

Japan
Information Equipment
Americas

Japan

0

0.0

－

0

0.0

－

－

－

－

0

0.0

－

Others

237

13.7

(5)

320

14.8

0.1

136

10.3

(42.3)

172

9.2(46.3)

Total

1,735

100.0

(6)

2,170

100.0

(7.2)

1,330

100.0

(23.3)

1,879

100.0

(13.4)(3) Sales by Equipment in Areas
FY 2014
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAmericas

Change Amount

Change Amount

(5.1)

1,766

81.4

70.4

(4.7)

1,506

4.7

(17.2)

92

7.2

0.0

168

7.8

2.7

(21.2)

61

2.8

23

1.3

(8.0)

35

1.6

Information Equipment

24

1.4

(31.4)

26

Others

0

0.0

－

0

1,428

82.3

Audio Visual Equipment

1,222

Information Equipment

82

Others124

Europe47

Audio Visual Equipment

Asia and Others

3Q (Apr. ‐ Dec.)%（Units : 100 million yen, %）FY 2015
Full‐Year (Projections)

Change Amount%

Change

(4.5)

1,072

80.6

69.4

(4.1)

1,008

4.2

(27.0)

32

9.1

32

2.5

(74.2)

37

2.0(78.0)(20.9)

14

1.0(70.8)

17

0.9(72.1)

9.4

6

0.5

(73.9)

7

0.4(80.0)

1.2(42.2)

8

0.5(66.7)

10

0.5(61.5)

0.0

－

0

0.0

－

0

0.0

－

(24.9)

1,541

82.0

75.7

(17.5)

1,469

78.1

(2.5)

2.4

(61.0)

35

1.9(62.0)(12.7)

17

1.0(33.3)

21

1.0(34.6)

90.7(46.2)

8

0.4(60.9)

Audio Visual Equipment

5

0.3(50.0)

5

0.2(58.3)

2

0.1(60.0)

3

0.2(40.0)

Information Equipment7

0.4(41.7)

8

0.4(50.0)

2

0.2(71.4)

2

0.1(75.0)

Others

5

0.3

25.0

8

0.4

100.0

5

0.4

0.0

3

0.1

(62.5)

243

14.0

(7.9)

322

14.8

(15.5)

235

17.7

(3.3)

313

16.7

(2.7)

Audio Visual Equipment

135

7.8

(3.6)

178

8.2

(18.0)

136

10.3

0.7

181

9.6

1.7

Information Equipment

0

0.0

－

0

0.0

－

－

－

－

0

0.0

－

108

6.2

(11.5)

144

6.6(11.1)

99

7.4

(8.3)

132

7.1

(8.3)

1,735

100.0

(6.4)

2,170

100.0

(7.2)

1,330

100.0

(23.3)

1,879

100.0

(13.4)Japan

OthersTotal－3－

3．Summary of 3Q (October to December) Financial Statements (Consolidated)(1) Operating Results（Units : 100 million yen, %）FY 2014

FY 2015

3Q (Oct. ‐ Dec.)

3Q (Oct. ‐ Dec.)%

Amount577

Net Sales

Change100.0%

Amount(11.2)

462

Change
100.0

100.0

Operating Income (Loss)

0

0.1

－

(25)

(5.4)

(5)

Ordinary Income (Loss)

15

2.6

(42.6)

(24)

(5.4)

(5)

Net Income (Loss) after Tax

13

2.3

17.0

(21)

(4.7)

(5)

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

FY 2015

3Q (Oct. ‐ Dec.)

3Q (Oct. ‐ Dec.)

Average Rate in each Period

116.04121.44(2) Sales by Equipment（Units : 100 million yen, %）FY 2014

FY 2015

3Q (Oct. ‐ Dec.)

Audio Visual Equipment

3Q (Oct. ‐ Dec.)%

AmountChange%AmountChange

475

82.3

(8)

406

87.9

(14.5)

DVD

42

7.3

(25)

40

8.6

(4.8)

BD

40

6.9

(9)

29

6.3

(27.5)LCD TV

378

65.5

(5)

327

70.8

(13.5)

Others

15

2.6

(29)

10

2.2

(33.3)

Information Equipment

17

3.0

(59)

12

2.6

(29.4)

Others

85

14.7

(7)

44

9.5

(48.2)

Total

577

100.0

(11)

462

100.0

(19.9)－4－

（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