Financial Results of FY2017

May 15, 2018
FUNAI ELECTRIC CO.,LTD.
TSE 6839

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Ⅰ．Financial Results of FY2017
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Summary of 4th Quarter (Jan.-Mar.)Summary of FY2017 (Apr.-Mar.) 1
Summary of FY2017 (Apr.-Mar.) 2
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Sales of Information Equipment
Geographic Breakdown of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital, Depreciation, R&D Expenditures
Forecast FY2018
Forecast of Sales by Business21. Summary of 4th Quarter (Jan.-Mar.)（100 million yen）

FY20164Q

FY2017
4Q

Net Sales

304

214

Operating Income-21-50(-7.1%)(-23.4%)-28-60(Margin)(-9.4%)(-28.3%)Net Income Attributableto owners of parent-14-92(Margin)(-4.7%)(-43.1%)112.85107.46(Margin)

Ordinary Income

Average USD-JPY
Exchange Rate
Month End
USD-JPY
Exchange Rate

Dec.2016

Mar.2017

Dec.2017

Mar.2018

116.49112.19113.00106.24

Difference(Y / Y)-90（-29.8%）-29-32-78

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2. Summary of FY2017 (Apr.-Mar.) 1（100 million yen）FY2016
Actual

FY2017
Forecast

FY2017
Actual

1,338

1,400

1,301-67-84-108(-5.1%)(-6.0%)(-8.4%)-77-80-119（Margin）(-5.8%)(-5.7%)(-9.2%)Net Income Attributableto owners of parent-67-174-247（Margin）(-5.0%)(-12.5%)(-19.0%)108.88110.64110.69Net Sales
Operating Income（Margin）

Ordinary Income

Average USD-JPY
Exchange Rate
Month End USD-JPY
Exchange Rate

Mar.2017

Mar.2018

112.19106.24

Difference(Y/Y)

VS Forecast-37-99(-2.8%)(92.9%)-41-24-42-39-180-7343. Summary of FY2017 (Apr.-Mar.) 2（100 million yen）

FY2016

Difference(Y / Y)FY2017

Operating Income-67-108-41

Non-operating income
Non-operating expenses

5155160＋1

Ordinary Income-77-119-42

Extraordinary income
Extraordinary losses

16112126-14＋115-72-243-171-5

4＋9-67-247-180(note:1)(note:2)

Income before IncomeTaxes
Income taxes

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

FY2016
3FY2017

2FY2016-11 -12-20016FY2017

2-126-1
Extraordinary incomeInterest income-11

Interest Payments Foreign exchange gainand loss

Extraordinary losses

Others5

4. Breakdown of Sales by Equipment
 AV Equipment:Increased due to the good sales of LCD TV in Japan.
 Info Equipment:Decreased due to slow sales of inkjet-printers and ink-cartridge.
 Others:Sales of electronic reception devices ceased due to the transfer of the DX
antenna.
（100 million yen）
（100 million yen）

Y / Y (Change)

AV Equip

1,338

AVEquipment＋74(+6.3%)

DVD Equip-27(-13.0%)

TV Equip＋101(+10.7%)

Information Equip-18(-34.3%)

その他Others-93(-68.7%)

Total-37(-2.8%)

1,301

1,152
DVD：212
TV：940

Sales Composition
1,226
DVD：185
TV：1,041

Others10%
4%

Others
DVD16%

Information
Equip.

Information
Equipment

Others51
135
FY20163342
FY2017

3%
Information
Equip.

3% DVD14%

FY2016FY2017

TV 70%

TV 80%

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5. Sales of DVD related Equipment Decrease in DVD-related sales exceeded BD-related sales increase.

（100 million yen）

212
185
BD Recorders

Y / Y (Change)

72

95
BD Players

DVD

Others（100 million yen）

53

71

BD Recorders＋23(＋30.3%)BD Players＋2(＋4.3%)

DVD-43(-60.6%)

Others-9(-55.7%)

Total-27(-13.0%)

55

16287

FY2016

2017FY7

6. Sales of LCD Television
 Sales increased due to increase in unit price by upsizing the mainstream size of LCD TV and exclusive sales of Yamada Denki in Japan.
（100 million yen）

940

1,041
（100 million yen）

Y / Y (Change)
LCD TVLCD TV940

FY2016：＋101（＋10.7%）

1,041

FY20178

7. Sales of Information Equipment Decreased due to decreased sales of ink-jet printers and ink-cartridges.
（100 million yen）

51（100 million yen）

33
Information
Equipment

Y / Y (Change)
Information
Equipment：-18（-34.3%）

51
33

FY2016FY201798. Geographic Breakdown of Sales
 Americas: Decrease in DVD-related sales, ink-cartridge sales and LCD TV sales.
 Japan: LCD TVs and Blu-ray disc recorders increased.
（100 million yen）

（100 million yen）

1,338

Y / Y (Change)

1,301

Americas1,029EuropeAsia & OthersJapan

104295

Americas-86(-8.3%)

Europe-5(-47.4%)

Asia & Others＋10(＋227.5%)

Japan+44(＋14.8%)

Total-37(-2.8%)

943

514

Sales Composition
Japan22%Europe

1%

FY2016339
Americas77%

FY2016

Japan

26%
Asia&Others

1%

FY2017

Americas73%

FY2017109. Operating Income Analysis (Y/Y)（100 million yen）

Y / Y (Change)
FY2016FY2017

Operatingloss

Operatingloss

-67
-108

Decrease of
Add-value

Decrease ofGeneralExpenses-88
Sales
decrease

+51

-4

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10. Financial Conditions（100 million yen）

Y / Y (Change)（100 million yen）

1,086
941
Cash / Deposit

Assets

Accounts
Receivables

802

334
156

123

323

Inventories

262

Fixed Assets
and Others

267

165

99
236
144

186
134

150
186

118
177

Trade Payables
Accounts Payables
and Others

Liabilities
AndNet Assets

401

Net Assets

766

1,086

319

605

941

Assets-284

・Cash / Deposit-78

・Accounts Receivables-57

・Inventories-26

・Fixed Assets and Others

Liabilities

-25

507

・Trade Payables

-68

802

・Accounts Payables
and Others
Net Assets＋43（ Equity Ratio

Mar.2017

Dec.2017-123

Mar.2018-259

63.2%）

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11. Inventories Trends

Y / Y (Change)

Finished products： -22Work in process：-4<Inventories Turnover period in months>（100 million yen）

4.1

3.7

3.4

3.0
2.2

2.2

2.6

3.32.6442452371
312
Finished products

299268262

215

253

236

227
190

198

185
193

154

132
227

Work in process

319

144Mar.2016

122

101

Jun.2016

Sep.2016＊ Inventories Turnover period in months

75
Dec.2016

199

108
Mar.2017

Jun.2017

Sep.2017

134
Dec.2017

104
Mar.2018＝ Last 3 months sales average ÷ Inventories

1312. Capital, Depreciation, R&D（ 100 million yen ）CapitalDepreciation

R&D【FY2016 vs FY2017】-29.8％【FY2016 vs FY2017】-38.7％【FY2016 vs FY2017】-15.1％（Sales ratio）

5.5%
5.0%

30

FY2016282121FY2017
Forecast

FY201774274.8%

706217FY2016

FY2017
Forecast

FY2017FY2016FY2017
Forecast

FY2017

1413. Forecast FY2018（100 million yen）

FY2017
1 halfNet Sales721

Actual2 half

580

FY2018Full year

1 half

1,301

450

Change(Y/Y)

Forecast

2 half580

Full year 1 half 2 half Full year

1,030 -271

0-271（-20.8％）Operating
Income(Margin)

Ordinary
Income(Margin)
Net Income
Attributableto owners of parent(Margin)Average USD-JPY
Exchange Rate-40-68-108-24

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4 +16(-5.6%)(-11.8%)(-8.4%)(-5.3%)(4.8%)(0.4%)-36-83-119-2519-6(-5.1%)(-14.2%)(-9.2%)(-5.6%)(3.3%)(-0.6%)-130-117-247-2316(-18.1%)(-20.0%)(-19.0%)(-5.1%)(2.8%)

111.29110.10110.69+96+112+102+113-7 +107 +133+240+11(-0.7%)

105.0015

14. Forecast of Sales by Business
DVD/BDLCD TVs【FY2017 vs FY2018】 -18.9％（ 100 million yen ）【FY2017 vs FY2018】 -22.2％

1,338
212

1,301
185

1,030
212

FY2016185

FY2017940

1,041810

150

FY2018
Forecast

FY2016FY2017150

FY2018
ForecastOffice SolutionOthers【FY2017 vs FY2018】＋51.5％【FY2017 vs FY2018】 -52.4％

940
1,0418105150135335142FY2016

FY2017FY2018
Forecast

FY2016FY2017

20135FY2018
Forecast

33425020

FY2016FY2017FY2018…

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Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography17

1. Quarterly Financial Summary of FY 2016 - 2017
（ 100 million yen ）FY2016Net Sales
Operating
IncomeFY2017

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

250411373304

320401366

214-28-7-10-21-23-17-18-50( Margin )(-11.5%)(-1.8 %)(-2.7%)(-7.1%)(-7.3%)(-4.3%)(-5.0%)(-23.4%)

Ordinary Income-58-1626-28-21-14-22-60( Margin )(-23.4%)(-3.9%)(7.0%)(-9.4%)(-6.7%)(-3.7%)(-6.1%)(-28.3%)Net Income
Attributableto owners of parent

-57

-19

23-14-15-115-24-92( Margin )(-22.8%)(-4.6%)(6.2%)(-4.7%)(-4.7%)(-28.9%)(-6.6%)(-43.1%)108.53102.90111.25112.85111.41111.16112.73107.46

Average USD-JPY
Exchange Rate18

2. Quarterly Sales Trends by Equipment

DVD Equipment

TV Equipment

41154（ 100 million yen ）Information Equipment

Others40137369304
42250

32051366
5150

21447314255

33328
211160299

256158

934123114351635

1Q

2Q

3Q

4Q

FY2016771210797
16

1Q

2Q

3Q

4Q

FY201719

3. Quarterly Sales Trends by Geography
Americas

EuropeAsia & Others

411（ 100 million yen ）

Japan

401

373

366
304

320

250
344304

288
216

219

277

181

214

143
3

3
12
11
11422

2
166

1638185

999285

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY201617634QFY2017
20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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