Presentation ofFinancial Results
First Half (Apr.-Sep) of FY2016
November 15, 2016

FUNAI ELECTRIC CO., LTD.
TSE 68390Ⅰ. Financial Results

11. Summary of 2st Quarter (Apr.-Jun.)（100 million yen）

FY20152Q

FY2016
2Q

Y/Y(Changes)-76

S a l e s

487

411

O p e ra t i n g I n c o m e-16-79)(-3.3%)(-1.8%)(－)

Ordinary Income-33-1617)(-6.8%)(-3.9%)(－)

Net Income Attributableto owners of parent-39-1920(-8.0%)(-4.6%)(－)

N e t(((MMMaaarrrgggiiinnn)

Average USD-JPY
Exchange Rate

121.72(-15.6%)102.90Month End Exchange Rate

Jun.2015

Sep.2015

Jun.2016

Sep.2016（USD/JPY）

122.45119.96102.91101.122

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

FY2015 FH FY2016 FH FY2016 FH
Revised Forecast
ActualActualS a l e s

865

706

661

Operating Income-58-30-36( M a r g i n )(6.7%)(-4.2%)(-5.5%)O rd i n a r y I n co m e-70-69-74( M a r g i n )(-8.1%)(-9.8%)(-11.3%)N e t I n c o m e At t r i b u t a b l e
to owners of parent-79-67-76( M a r g i n )(-9.1%)(-9.5%)(-11.6%)

N e t

Average USD-JPY
Exchange Rate

121.72105.72Difference(Y / Y)

Difference(Forecast)

-204

-45

(-23.6%)(93.6%)

22-6-4-5

3-9105.72

Month End Exchange Rate

Mar.2015

Sep.2015

Mar.2016

Sep.2016(USD/JPY)

120.17119.96112.68101.123

3. Summary of First Half (Apr.-Sep.)（100 million yen）

Non-operating income
Non-operating expenses

FY2015 FHActual

FY2016 FH
ActualDifference(Y / Y)315240-125-70-74-416211-5-75-73243-1-79-76

3(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)
Foreign exchange
gain and loss

111-1 -1

Interest
incomeInterest
Payments0(note:2 Extraordinary income and losses)
Extraordinary
income-13Others

1

FY2016 FH

Extraordinarylosses

21-38
FY2015 FH

FY2015 FH6FY2016 FH44．Breakdown of Sales by Equipment
 AV Equipment: LCD TVs and DVD related products decreased.
 Info Equipment: Printers decreased due to slow sales of ink-cartridge for OEM.
 Others:
Audio Accessories decreased.
（100 million yen）

Y / Y (Change)（100 million yen）

865

AV Equip

661
AVEquipment744
DVD：128
T V：616(-22.7%)

DVD Equip-27(-21.1%)

TV Equip-142(-23.1%)

Information Equip-9(-30.0%)

Others-26(-28.6%)

Total-204(-23.6%)575
DVD：101
T V：474

Sales Composition
OthersInformationEquip.
3%Information
Equipment
Others-169

3091
FY2015 FH

11%

DVD15%FY20152165TV

71%

OthersInformation
Equip.
3% 10%

DVD15%FY2016TV72%

FY2016 FH
5

5．Sales of DVD related Equipment
 Blu-ray player increased due to good sales.

128
DVD Players

35（100 million yen）

（100 million yen）

101
Y / Y (Change)

22
DVD Recorders

31
16

Blu-ray disc

Others47

15
FY2015 FH

56

DVD Players-13(-37.1%)

DVD Recorders-15(-48.4%)

Blu-ray disc+9(+19.1%)

Others-8(-53.3%)

Total-27(-21.1%)

7
FY2016 FH
6

6．Sales of LCD Television Decreased due to the delay of New model and weak sales caused by pricecompetition.

616（100 million yen）

（100 million yen）

474

Y / Y (Change)

LCD TV

616：- 142 （-23.1%）

474

FY2015 FH

FY2016 FH
7

7. Sales of Information Equipment Decreased, because of lower sales of ink-cartridges for OEM business.

（100 million yen）

30

21
Information
Equipment

YoY Change (%)
Information
Equipment30:-9 ( -30.0% )21FY2015 FH

FY2016 FH

8

8. Geographic Breakdown of Sales
 Americas: LCD TVs and Audio Accessories decreased.
 Japan:Blu-ray disc players for OEM had good sales, but LCD TVs decreased.
（100 million yen）

（100 million yen）

Y / Y (Change)

865
661
Americas698

Americas-173(-24.6%)

Europe-4(-44.6%)

Asia & Others-3(-69.0%)

Japan-24(-16.2%)

Total

-204

(-23.6%)

Sales Composition

525

EuropeAsia&Others

Asia & Others

95Japan153
FY2015 FH

52129

Europe

Japan

Japan

18%
1%1%

FY2015

Americas 80%

Asia&Others

Europe1%1%

18%
FY2016

Americas80%

FY2016 FH
99. Operating Income Analysis (Y/Y)＊ Add-value=Sales – (Cost of sales + selling expenses)（100 million yen）

Y / Y (Change)
Operatingloss

Operatingloss△ 36
Decrease ofGeneralExpenses△ 58Sales
decrease△ 11
FY2015 FH

Increased of
Add-value+23+10FY2016 FH
1010. Financial Conditions（100 million yen）
（100 million yen）

Cash / Deposit
Accounts
Receivables

AssetsLiabilitiesAnd
Net Assets

Inventories

Y / Y (Change)

1,866
441
431
589

1,541
576
240
371

Fixed Assets
and Others405

Trade Payables

250

354
156

Accounts Payables
and Others

484

541

369
177
299
333
191
254

844
1,1321,178
1,541
1,866
Sep.2015- 688

・Cash / Deposit- 72

・Accounts Receivables- 254

・Inventories- 290

・Fixed Assets and Others

- 72

1,178

733
Net Assets

AssetsLiabilities- 289

・Trade Payables- 59

・Accounts Payables
and Others- 230

Net Assets- 399（ Equity Ratio
Mar.2016

61.7%）

Sep.20161111. Inventories Trends

589（100 million yen）

Finished products

371
409

（100 million yen）

299
Y / Y (Change)

227
198
Work in process

180

144

： - 211Work in process： - 79101

Sep.2015

Mar.2016

Sep.2016

3.6 months

3.0 months

2.2 months<Inventories Turnover>Finished products

1212. Capital Expenditures, Depreciation Expense and R&D Expenditures
First Half
CapitalExpenditures

Depreciation
ExpenseFull Year
R&DExpenditures

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures（ 100 million yen ）（ 100 million yen ）

80

120

Y/Y

Y/Y

Y/Y

+5-4-6100

60
80

60404135407720151713722035
2410232700
FY2015 FY2016
FH
FH

FY2015 FY2016
FH
FH

FY2015 FY2016
FH
FH

FY2015 FY2016

FY2015 FY2016

FY2015 FY2016(Forecast)(Forecast)(Forecast)13

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

141. Quarterly Financial Summary of FY 2015 - 2016
（ 100 million yen ）FY2015FY2016

1Q

2Q

3Q

4Q

1Q

2Q

S a l e s

378

487

468

367

250

411

Operating Income-42-16-14-33-28-7( Margin )(-11.2%)(-3.3%)(-3.0%)(-9.1%)(-11.5%)(-1.8%)

Ordinary Income-37-33-14-52-58-16)(-9.8%)(-6.9%)(-2.9%)(-14.1%)(-23.4%)(-3.9%)Net Income
Attributableto owners of parent-40-39-11-248-57-19( Margin )(-10.7%)(-8.1%)(-2.2%)(-67.6%)(-22.8%)(-4.6%

121.72121.72121.44115.05108.53102.90N e t(MarginAverage USD-JPY
Exchange Rate

15

2. Quarterly Sales Trends by Equipment（ 100 million yen ）DVD Equipment

487
378

TV Equipment

OthersInformation Equipment

468
411

6881

367
5460

53

250
365

47329

251

314

270
160

15
52

15
39

12
46

8
36

9
34

1Q

2Q

3Q

4Q

1Q

FY20151231
2Q

FY201616

3 ．Quarterly Sales Trends by Geography
Americas487

EuropeAsia & Others（ 100 million yen ）

Japan

468
411

378

367
406

377

292

250
344

284
181

352
179

174

482

1Q

2Q

3Q

46

FY2015

3180

2
166

63

4Q

1Q

2Q

FY201617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.

18