February 12, 2009
Funai Electric Co., Ltd.

Third Quarter (April-December) Consolidated Financial Summary
for the Period Ending March 2009
Current Year Third Quarter

Previous Year Third Quarter

From April 1, 2008
To December 31, 2008

From April 1, 2007
To December 31, 2007

AmountAmountPercent

Million yen

Net Sales%

Percent% increaseor decrease
from thesame periodof theprevious
consolidated
fiscal year％

Million yen％

240,096100.0

225,890

100.0

6.3

Operating Income

3,273

1.4

1,284

0.6

154.7

Ordinary Income

2,393

1.0

5,785

2.6

△58.6

△1,676

△0.7

4,747

2.1

―

792

0.3

△3,023△1.3―△16,046△6.7△3,023△1.3―

Net Income before Taxes andOther Adjustments※
Net Income after tax※※
Net Income /Loss after Tax

Net Income/Loss per Share△ 470.66△88.69※ For the purpose of comparison the Net Income/Loss after Tax before the deduction of Income taxes for 16.8
billion yen for prior periods is recorded.
※※ Supplementary tax assessment based on rectification notice to Funai Electric Co., Ltd. for anti-tax havensystem in HK for 16.8 billion yen for the period of March 2005 to March 2007 was posted as a cost of income
taxes for prior periods in 1Q consolidated income statement of FY2008.
Notes:
Includes 13 consolidated subsidiaries and 2 affiliated companies accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 9-Month Period ended December 31, 2008
February 12, 2009

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Inquiries: Representative’s
President and CEO
Tomonori Hayashi
position and name
Administrator’s
General Manager,
Hisao Fuke
position and nameAccounting Department
Scheduled date of Submission of Quarterly Report ; February 13,2009

TEL: (072) 870-4395

1.Third Quarter Consolidated Results for the Period Ending March 2009 (April 1, 2008 – December 31, 2008)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen

3rdQuarter FY2008
3rdQuarter FY2007rd

3 Quarter FY2008
3rdQuarter FY2007%

Million yen

－
△20.2

240,096
225,890

3,273
1,284

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted Basis

Yen

Yen

△ 470.66△ 88.69%－△ 93.3

Million yen%

Million yen－ △16,046△75.1 △3,023

2,393
5,785

%

－
－

－
－

(2) Consolidated Financial Position
Shareholders’Equity Ratio

Net Assets

Total Assets
Million yen

Million yen

Net Assets
Per Share%

3rd Quarter FY2008
Fiscal Year 2007

210,728
130,470
224,415
158,356(Reference) Shareholders’ Equity
3rd Quarter FY2008 ended December 31, 2008 129,916million yen
Fiscal Year 2007 ended March 31, 2008
157,871 million yen

Yen

61.7
70.3

3,810.66
4,630.58

2. Dividends
Corresponding Period

Fiscal Year 2007
Fiscal Year 2008
Fiscal Year 2008
(Projection)st

1 Quarternd

2 Quarter

yen
－

0.00

－

0.00

Dividend per Share
3rd QuarteryenYear end

Annual

yen
－

50.00

yen

50.00

yen

－

50.00

50.00

3. Forecast of Consolidated Results for the Full Year (April 1, 2008 - March 31, 2009)(% denotes year on year)

Net Sales
Full Year

Operating Income Ordinary Income

Net Income

Net Income
Per Share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

304,000

9.7

500

－

△1,500－△19,000－△557.30

Note:
Revision of Forecast of Consolidated Results for the Nine month period and the Full Year in this 3rdQuarter;No.

4. Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): Yes
Add:P&F USA Inc.
(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting for fiscal quarter : Yes
Note: Please refer to “Qualitative Information and Financial Statements”.
(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results(1)Changes arising from revision of accounting standards: Yes(2)Changes arising from other factors: Yes
Note: Please refer to “Qualitative Information and Financial Statements”.
(4) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of December 31, 2008;36,104,196shares
as of March 31, 2008; 36,104,196shares(2)Number of shares of treasury stock as of December 31, 2008; 2,011,297shares
as of March 31, 2008; 2,011,003shares(3)The Average number in the quarter of outstanding shares on December 31, 2008; 34,093,093shareson December 31, 2007; 34,093,193shares

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.

Qualitative Information/Financial Statements
1．Qualitative Information Regarding Consolidated Operating Results
The world economy continued to worsen through the 3rd quarter. The financial crisis in the US spread beyond the stock
market or the foreign exchange markets into the real economy, and the September 2008 “Lehman Shock” in particular
accelerated the downturn in the economies of developing nations, in addition to those of advanced nations.
Revenue in the home appliance market was also affected. Notably, lower year-end sales, which were seasonally thehigh point of annual demand, and a downward trend in the prices of our major products, such as LCD TVs, were theresult of flagging consumer spending brought on by the global economic downturn.
As a result, the Funai Group’s net sales through the 3rd quarter totaled 240,096 million yen (a 6.3% increase, year on
year basis).
The market for audiovisual equipment continued to contract, and sales of CRT TVs, DVD players, and other related
equipment fell. However, sales received a boost from Blu-ray Disc players (expected to become a growth product in the
future), TV set-top boxes* that will be required in the US market once on-air analog broadcasting stops in June 2009
(planned), and LCD TVs, aided by the addition of the Philips brand through a North America brand licensing agreement(concluded April 2008). Net sales for audiovisual equipment totaled 181,684 million yen (a 21.1% increase, year on
year basis).
*Set-top boxes transform digital signals to analog signals, allowing viewers to watch digital broadcast programson on-air analog TVs.
OEM partner orders for digital still cameras increased. However, competition in the printer market continues to befierce, leading to OEM partners reevaluating their product strategies and, consequently, to a reduction in printer sales.
As a result, net sales of information equipment totaled 38,417 million yen (a 32.1% decrease, year on year basis).
Net sales of receivers and other electronic equipment totaled 19,993 million yen (a 3.9% increase, year on year basis).
The rapid deceleration in the world economy that began in September 2008 has further worsened consumption. As aresult, Funai’s major products have been affected by intense price competition, and operating income fell 1,047 million
yen below the cumulative 2nd quarter value (4,320 million yen) to 3,273 million yen (a 154.7% increase, year on year
basis). Ordinary income totaled 2,393 million yen (a 58.6% decrease, year on year basis) due to the appropriation offoreign exchange losses, etc. Net income for the quarter ended in a loss of 16,046 million yen (a quarterly net loss of
3,023 million yen , year on year basis) due to the accounting of 16,838 million yen as “retroactive corporate taxes” inaccordance with the supplementary tax assessment arising from the application of the anti-tax haven system.

Note: Increases/decreases from the same period of the previous year (monetary values from the same period of theprevious year) are provided for reference only.

2．Qualitative Information Regarding Funai’s Consolidated Financial Position
Funai’s financial position at the end of the 3rd quarter was as follows.
Total assets decreased by 13,687 million yen compared to the end of the previous consolidated fiscal year. While cash
and cash equivalents increased by 15,973 million yen and trade notes and accounts receivable increased by 16,510
million yen, the overall decrease was primarily due to a 40,395 million yen decrease in long-term loans receivable.
Total liabilities increased by 14,198 million yen compared to the end of the previous consolidated fiscal year. This
increase was primarily due to an 11,386 million yen increase in trade notes and accounts payable.
Net assets decreased by 27,885 million yen compared to the end of the previous consolidated fiscal year. This decreasewas due to 18,446 million yen and 9,423 million yen decreases in retained earnings and foreign currency translation
adjustments, respectively.

3．Qualitative Information Regarding Consolidated Earnings Forecasts
Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on February 2, 2009
for information regarding earnings forecasts.

Note: Results forecasts are based on management decisions in light of currently available information and include
risk and uncertainties. Various factors such as a change in economic conditions overseas, in the US—Funai’s
primary market—in particular, and sharp product price fluctuations may cause results to differ from predictions.

4．Other(1) Mid-period transfer of important subsidiaries (transfer of specific subsidiaries accompanying changes in
consolidation range)
Due to its increasing importance, P&F USA, Inc. was included in consolidated reporting from the 2nd quarter.

(2) Application of simplified accounting and unique accounting in the creation of quarterly consolidated financial
statements
a. Simplified accounting
Funai and its domestic consolidated subsidiaries use the diminishing balance method (however, the straight-line
method is used for buildings acquired after April 1, 1998 [excluding incidental facilities]). Therefore, depreciation
values for the consolidated fiscal year are calculated by distributing the applicable amount over fiscal terms.
b. Unique accounting in the creation of quarterly consolidated financial statements
Tax expenses are calculated by rationally estimating the effective tax rate on pre-tax net income from theconsolidated fiscal year, including the consolidated quarter, after applying deferred tax accounting and thenmultiplying the pre-tax quarterly net income by the estimated effective tax rate.
Income tax adjustment values are included in corporate tax.

(3) Changes in accounting rules, procedures and reporting style regarding quarterly consolidated financial statements
・Changes to accounting standards
a.. The “Accounting Standard for Quarterly Financial Reporting”(Accounting Standards Board of Japan [ASBJ]
Statement No. 12) and the “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ
Guidance No. 14) are being applied from the current consolidated fiscal year. Additionally, quarterly consolidated
financial statements are created in accordance with the “Quarterly Consolidated Financial Reporting Regulations.”b. Inventory
Inventory normally carried for sales was previously calculated using cost accounting based on the periodic
average method. However, in accordance with the application of “Accounting Standards for Inventory Valuation(ASBJ Statement No. 9; July 5, 2006), inventory will be calculated using cost accounting based on the periodic
average method (with regard to the values entered on the balance sheet, a method of depreciating book value
based on lowered profitability) from the 1st quarter.

These changes have minimal effect on profit and loss.

c. Application of the “Interim Accounting Standards for Overseas Subsidiaries When Creating Consolidated
Financial Statements”
The “Interim Accounting Standards for Overseas Subsidiaries when Creating Consolidated Financial Statements”(Practical Accounting Report No. 18; May 17, 2006) have been applied since the 1st quarter and the necessary
revisions to consolidated accounting are being made.
These changes have minimal effect on profit and loss.

d. Application of accounting standards for lease transactions
Finance lease transactions in which ownership is not transferred were previously accounted for according to leasetransaction-related methods. However, companies became able to apply the “Accounting Standards for Lease
Transactions” (ASBJ Statement No. 13 [June 17, 1993 (Corporate Accounting Committee No. 1); revised March
30, 2007]) and the “Guidance on Applying Accounting Standards for Lease Transactions” (June 1, 2006 [TheJapanese Institute of Certified Public Accountants (JICPA) Accounting Systems Committee]; revised March 30,2007) to quarterly consolidated financial statements from the consolidated fiscal year beginning April 1, 2008. As
such, Funai has employed these accounting standards from the 1st quarter when accounting for ordinary sales
transactions (however, finance lease transactions in which ownership is not transferred and whose start date began
before the first fiscal year in which the lease accounting standards were applied will continue to be accounted forusing ordinary lease transaction-related methods). Additionally, the depreciation of leased assets in finance leasetransactions in which ownership is not transferred is calculated using the straight-line method, with lease length
set as the useful life of the assets and a residual value of zero at lease-end.
These changes have no affect on profit and loss.

(4) Supplementary tax assessment based on the application of the anti-tax haven systema. On June 28, 2005, Funai received notice of a supplementary tax assessment from the Osaka Regional Taxation
Bureau (the “Bureau”) indicating that Funai’s Hong Kong subsidiaries did not meet the exclusion requirements
under the anti-tax haven system, and that the subsidiary income for the three fiscal years from April 2001 to March
2004 was to be considered Funai income and that it would be taxed as such. Funai, dissatisfied with the
supplementary tax assessment, filed a petition with the National Tax Tribunal’s Osaka Branch (the “Tribunal”) on
July 25, 2006 and a complaint with the Osaka District Court requesting the cancellation of the supplementary tax
assessment on November 16, 2006.
However, Funai received the decision of the Tribunal on July 3, 2008, rejecting our position. Funai feels that thisdecision is extremely regrettable and wholly unacceptable, and we will continue to assert the validity of ourposition in court.
The additional tax payments amount to 16,651 million yen (19,184 million yen including penalties), which
includes corporate tax, residence tax, and business tax. These tax payments were reported as “retroactive corporate
taxes” in the fiscal year ended March 2007 after the relevant accounting method was clarified in the March 8,
2007, revision of the “Auditing Procedures Related to the Accounting and Reporting of Taxes” (JICPA, Auditing
and Assurance Committee Report No. 63).

b. On June 16, 2008, Funai received notice of a supplementary tax assessment from the Bureau indicating that
Funai’s Hong Kong subsidiaries did not meet the exclusion requirements under the anti-tax haven system, and thatthe subsidiary income for the three fiscal years from April 2004 to March 2007 was to be considered Funai income
and that it would be taxed as such. As with the previous application of the anti-tax haven system (dated June 28,2005) Funai believes that the issuance of this additional supplementary assessment, despite the ongoingdeliberation of the previous assessment in the Osaka District Court, is extremely regrettable and wholly
unacceptable. Funai therefore filed a petition with the Tribunal on August 6, 2008.
Although the petition continues to be reviewed, Funai became eligible to seek judicial remedy three months after
submission of the petition. Accordingly, Funai filed a complaint with the Osaka District Court requesting thecancellation of the supplementary tax assessment order on November 14, 2008. This complaint will be mergedwith the previous complaint for deliberation.
The additional tax payments amounted to 15,038 million yen (16,838 million yen including penalties), which
includes corporate tax, residence tax, and business tax. These tax payments were accounted for as “retroactive
corporate taxes” in 1st quarter consolidated accounting.
The above system of taxation is determined at the end of each fiscal year for foreign corporations. For reference, if
the effects of this taxation system on the income of Funai’s Hong Kong subsidiaries from the fiscal year following
the fiscal years currently under review are calculated, total corporate tax and residence tax are estimated at
approximately 700 million yen, after deducting the value of dividends received from Funai’s Hong Kong
subsidiaries in the fiscal year ended March 2008. This amount has not been accounted for at the present time forthe reasons given above.

5. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
3rd Quarter FY2008(As of December 31, 2008)

Fiscal year 2007
(As of March 31, 2008)ASSETS;
Current Assets
Cash and deposits

84,047

68,074

Notes and accounts receivable-trade

43,351

26,841

Merchandise and finished goods

33,10621,123Work in process

1,460

1,292

Raw materials and supplies

7,386

12,668

Other

6,160

17,407

Allowance for doubtful accounts

△ 127

△ 286

Total current assets

175,387

147,122

Property, plant and equipment

15,618

16,772Intangible assets

5,304

6,222

423

40,81915,628

14,520Allowance for doubtful accounts△ 1,634△ 1,041

Total investments and other assets

14,41754,29735,341

77,293

210,728

224,415

Notes and accounts payable-trade37,19725,811

Short-term loans payable

18,935

13,213

Income taxes payable

470

4,642

Provision

1,946

1,189

Other

18,555

15,642

Total current liabilities

77,10660,499

2,364

2,484

787

3,075

3,151

5,559

80,257

66,058

Noncurrent assets

Investments and other assets
Long-term loans receivable
Other

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Provision
Other
Total noncurrent liabilities
TOTAL LIABILITIES(Mil. Yen)
3rd Quarter FY2008(As of December 31, 2008)

Fiscal year 2007
(As of March 31, 2008)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

111,366

129,812

Treasury stock△ 24,340△ 24,339

151,551

169,998

△ 148

△ 63

Foreign currency translation adjestment△ 21,486△ 12,063

Total valuation and translation adjestments△ 21,635△ 12,127

7

－

546

485

130,470

158,356

210,728

224,415

Total shareholders' equity
Valuation and translation adjustments
Valuation difference on avaiable-for-sale securities

Subscription right to shares
Minority interests
Total net asset
TOTAL LIABILITIES AND NET ASSETS

(2).Consolidated quartely statements of income(Cumulative 3rd quarter from April 1 to December 31, 2008)(Mil. Yen)
3rd Quarter FY2008

Net sales( from April 1, 2008
to December 31, 2008 )
240,096

Cost of sales

202,259

Gross profit

37,836

Selling, general and administrative expenses

34,563Operating income

3,273

Non-operating income
Interest income

3,085

Dividends income

56

Other

370

Total non-operating income

3,512

Non-operating expenses
Interest expenses

282

Equity in losses of affiliates

157

Foreign exchange loss
Other
Total non-operating expenses
Ordinary income

3,514
437
4,392
2,393

Extraordinary income
Gain on prior period adjustment

357

Gain on sales of noncurrent assets

6

Other

113

Total extraordinary income

478

Extraordinary loss
Loss on disposal of noncurrent assets

19

Special sales promotion

850

Estimated loss in value of securities

2,797

Liquidation loss on affiliated company

634

Other

244

Total extraordinary loss

4,547

Income before income taxes and minority interests△ 1,676

Income taxes△ 2,579

Income taxes for prior periods

16,838

Total income taxes

14,258

Minority interests in income
Net income

111△ 16,046

(3).Consolidated quartely statements of cash flows(Mil. Yen)
3rd Quarter FY2008( from April 1, 2008
to December 31, 2008 )Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization△1,676
3,671

Increase(decrease) in allowance for doubtful accounts

493

Increase(decrease)in provision for retirement benefits△ 117Interest and dividends income△ 3,142Interest expenses

282

Equity in (earnings) losses of affiliates

157

Loss (gain) on sales of property, plant and equipment

30

Loss (gain) on sales of investment securities△ 26

Loss (gain) on valuation of investment securities

2,797

Decrease (increase) in notes and accounts receivable-trade△ 24,972

Decrease (increase) in inventories△ 11,405

Increase (decrease) in notes and accounts payable-trade21,149Other, net

14,386

Subtotal

1,628Interest and dividends income received

2,247Interest expenses paid

△ 278

Income taxes paid

△ 4,546

Prior year's taxes paid

△ 16,838

Net cash provided by (used in) operating activities△ 17,788

Net cash provided by (used in) investment activities
Payments into time deposits
Repayments from time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment△ 67,579
19,180△ 3,440
662

Purchase of intangible assets△ 161

Purchase of investment securities△ 247

Proceeds from sales of investment securities

1,137

Collection of loan receivables

40,828Other, net△ 124

Net cash provided by (used in) investment activities△ 9,743

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

7,352

Repayment of long-term loans payable△ 1,086

Cash dividends paid

△ 1,704

Other, net
Net cash provided by (used in) financing activities

△ 15
4,546

Effect of exchange rate change on cash and cash equivalents△ 3,299

Net increase (decrease) in cash and cash equivalents△ 26,285

Cash and cash equivalents at beginning of period

57,100Cash and cash equivalents at end of period

30,814

(4) Notes for Continuing Enterprises
Not Applicable(5) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.

Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information
Current Third Quarter (April 1, 2008 - December 31, 2008)
Japan

N. America

Sales to outside customers

86,290140,671

Inter-segment sales

102,869

Total(Units: Million Yen)

Asia

Elimination Consolidated

EuropeTotal

359

12,773240,096－240,09626

144,49413

247,404(247,404)－

189,160

140,698

144,854

12,786

487,500(247,404)

240,096

2,340

1,638

2,397

△ 2,318

4,057

(784)

3,273

Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales
Current Third Quarter (April 1, 2008 - December 31, 2008)
N. America

Overseas sales

171,124(Units:Million Yen)
Asia

Europe5,897

30,865

Other
5,418

Consolidated sales
Ratio of overseas sales to consolidated sales (%)

Total
213,306
240,096

71.3

2.4

12.8

2.3

88.8

Reference Previous 3Q Consolidated Financial Statements(1) Previous third ｑuarter consolidated statements of income (April 1,2007-December 31,2007)(Mil.Yen)
Previous 3Q(from April 1,2007
to December 31,2007)
AmountNet sales

225,890

Cost of sales

190,203

Selling, general and administrative expenses

34,402

Operating income

1,284

Non-operating income

5,283

Non-operating expenses

783

Ordinary income

5,785

Extraordinary income

364

Extraordinary losses

1,401

Income before income taxes

4,747

Corporate income taxes

7,751

Minority shareholder's interests
Net income/loss after tax

20△ 3,023

(2).Previous third quarter consolidated statements of cash flows(April 1,2007 -December 31,2007)(Mil.Yen)
Previous 3Q（from April 1, 2007
to December 31, 2007 )Amount1.Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Interest and dividends income
Interest expenses
Decrease in notes and accounts receivable-trade
Increase in inventories
Increase in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
2.Net cash provided by (used in) investment activities
Payments into time deposits
Purchase of intangible assets
Proceeds from sales of investment securities
Payments for loan receivables
Other, net
Net cash provided by (used in) investment activities
3.Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Purchase of fractional shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
4.Effect of exchange rate change on cash and cash equivalents
5.Net increase (decrease) in cash and cash equivalents
6.Cash and cashequivalents at beginning of period
7.Net increase in cash and cash equivalents due to the changeof fiscal year end in consolidated subsidiaries
8.Cash and cash equivalents at end of period

4,747
4,795
△ 4,143
472
△ 492
3,036
△ 15,746
3,226△ 4,104
3,790△ 467△ 5,148△ 5,930△ 4,139△ 1,506
2,504
△ 280
△ 455
△ 3,878△ 4,972△2△ 1,875
0△ 6,850655△ 16,003
83,3207,284
74,601

(3) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.
Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information
Previous Third Quarter (April 1, 2007 –December 31, 2007)(Units:MillionYen)

Japan

N. America

Asia

EuropeTotal

Elimination Consolidated

Net Sales

196,648

94,942

162,620

19,114473,326(247,435)

225,890

Operating expenses

196,408

98,104

159,762

18,906473,182(248,577)

224,605239△3,161

2,857

207

143

1,141

1,284

OperatingLosses(△)

Incomeand6. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Current Year Third Quarter

Previous Year Third Quarter

From April 1, 2008

From April 1, 2007

To December 31, 2008

To December 31, 2007

AmountAmountPercent

By Equipment Type％% increase or
decrease fromthe same periodof the previous
consolidated
fiscal year

Percent

Percent％％

Audiovisual Equipment

181,68475.7

150,079

66.5

21.1

Information Equipment

38,41716.0

56,561

25.0

△32.1

Other Equipment

19,993

8.3

19,2488.5

3.9

240,096100.0

225,890

100.0

6.3

％

％

Total

％
26,78911.2

29,534

13.1

△ 9.3

N. America

171,124

71.3

149,882

66.3

14.2

Europe30,865

12.8

39,234

17.4

△21.3

Asia

5,897

2.4

4,547

2.0

29.7

Other Areas

5,418

2.3

2,690

1.2

101.4

Subtotal

213,306

88.8

196,35686.9

8.6

240,096100.0

225,890

100.0

6.3

Japan

By Region

ExportTotal(Note) Main Products by Equipment Type
Equipment
Audiovisual Equipment

Main Products
VCRs, DVD Players, DVD Recorders, Televisions, LCD Televisions,Blu-ray Disc Players

Information Equipment

Printers, Digital Still Cameras

Other Equipment

Receiver-Related Electronic Equipment

(Reference) Change in Operating Results for the Most Recent Quarter
Fiscal Period Ending March 2009 (Consolidated)
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2008

July - Sept 2008

Oct - Dec 2008

Jan - March 2009

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

59,44985,20995,436－Gross Profit

12,336

15,278

10,220－Operating Income

988

3,332

△1,047－

Ordinary Income

4,448

1,544

△3,599－Quarterly Net Income Before
Taxes and Other Adjustments

3,967

579

△6,222－△13,779

1,676△3,943－

Quarterly Net Income/LossYen

Quarterly Net Income per Share△404.16

Fully Diluted Quarterly Net
Income per Share

－

－

Yen

49.18
－

－

Yen

Yen

△115.68

－

－

－

－

－

－

Million Yen

Million Yen

Million Yen

Total Assets

227,888244,460

210,728－

Net Assets

147,591

146,345

130,470

－

Yen

Yen

Yen

4,275.73

3,810.66－

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2007

July - Sept 2007

Oct - Dec 2007

Jan - March 2008

Yen

Net Assets per Share

4,312.60

Million Yen

Fiscal Period Ended March 2008 (Consolidated)

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

77,361

78,95569,572

51,277Gross Profit

12,64012,801

10,245

9,611

Operating Income

1,172

896

△ 784

△ 3,690

Ordinary Income

4,480

573

731

△ 5,824

Quarterly Net Income Before
Taxes and Other Adjustments

4,463

△ 782

1,066

△ 2,237

Quarterly Net Income/Loss

1,342△5,5881,221△ 2,353

Yen

Quarterly Net Income per Share
Fully Diluted Quarterly Net
Income per Share

39.38
－

－

Yen

△163.90
－

－

Yen

35.83
－

－

Yen

△ 69.02－－

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

285,315

283,967

255,714

224,415Net Assets

189,221

176,825

176,876

158,356

Yen

Net Assets per Share

5,538.48

Yen

5,175.32

Yen

5,176.88

Yen

4,630.58

from 2008.4.1
to 2008.12.31

Page
1. Summary of 3Q Financial Statements（Consolidated）

1(1) Operating Results, Financial Conditions

1(2) Profitability and Per Share Data etc.

1(3) Capital Expenditures, Depreciation, R&D Expenses

1(4) Cash Flow2

2. Operating Activities（Consolidated）

2(1) Sales by Equipment

2(2) Sales by Area in Equipment

3(3) Sales by Equipment in Areas

3

3. Summary of 3Q (Oct.-Dec.)Financial Statements(Consolidated)

4(1) Operating Results

4(2) Sales by Equipment

4

FUNAI ELECTRIC CO.,LTD1. Summary of Third Quarter Operating Results (Consolidated)①Operating Results,Financial Conditions(Units:100million yen,%)
FY2008Full-Year(Projections)

FY2007
3Q
AmountFull-Year
Change Amount%

2,258 100.0 △ 20.2

Net Sales%

3Q
Change Amount

2,771 100.0 △ 30.1%

Change Amount

2,400 100.0

6.3%

Change3,040 100.0

9.7

5Operating Income

12

0.6 △ 93.3

△ 24 △0.9

－

32

1.4

0.2

－

Ordinary Income

57

2.6 △ 75.1△

0 △0.0－23

1.0 △ 58.6

△ 15 △0.5

－

154.7

Net Income after Tax△ 30 △ 1.3－△ 53 △1.9

－

7

0.3

－

△ 22 △0.7－

Net Income/Loss after Tax△ 30 △ 1.3－△ 53 △1.9－△ 160 △6.7－

△ 190 △6.3－

Total Assets

2,557

－

－

2,244

－

－

2,107

－

－

－

－

－

Net Assets

1,768

－

－

1,583

－

－

1,304

－

－

－

－

－

（※） Yen-Dollars /exchange rate
(Units:Yen / Dollars)
FY2008Full-Year(Projections)102.48100.00FY20073Q

Full-Year

Average Rate in each Period

117.143Q
113.80②Profitability and Per Share Data etc.
FY20073Q

Full-Year

FY2008Full-Year(Projections)
15.8
14.8

3Q

(%)

15.8

16.3

Operating Income Ratio (%)

0.6

△ 0.9

1.4

0.2

Ordinary Income Ratio

2.6

△ 0.0

1.0

△ 0.5

Gross Profit Ratio(%)

Shareholder's Equity Ratio

(%)

69.0

70.3

61.7

-

Net Assets Per share(yen)

5,176.88

4,630.58

3,810.66-

Net Income Per Share(yen)△ 88.69△ 157.71△ 470.66△ 557.30

Return On Assets

(%)

△ 1.1

△ 2.2

△ 6.9

-

Return On shareholder's Equity

(%)

△ 1.7

△ 3.1

△ 10.5-③Capital Expenditures,Depreciation,R&D Expenses
FY2007Full-Year

3Q
Amount42

Capital Expenditures

AmountChange△ 4.5

3Q
Change49

Amount△ 9.3

ChangeAmount%to Sales

Full-Year
Change Amount%to Sales

Amount30 △ 28.6

FY2007
3Q(Units:100million yen,%)
FY2008Full-Year(Projections)

3Q
Change Amount%to Sales

Change54

10.2

FY2008Full-Year(Projections)
Change Amount%to Sales

ChangeDepreciation Expenses

39

1.7 △ 26.4

48

1.7 △ 32.4

27

1.1 △ 30.8

38

1.3

△20.8

R&D

110

4.9

147

5.3

98

4.1 △ 10.9

134

4.4

△8.8

4.8

－1－

5.0

④CashFlow(Units:100million yen,%)
FY2008Full-Year(Projections)

FY2007Full-Year

3Q

3Q

Cash flows provided by operating activities

△ 59

△ 137

△ 177

－

Income before Income Taxes

47

25

△ 16

－

Depreciation Expenses
Others

47

60

36

－

△ 153

△ 222

△ 197

－

△

Cash flows used in investing activities

△ 38

△

Free cash flows

△ 97

△ 231

Cash flows provided by financing activities

△ 68

△

Effect of exchange rate changes
on cash and cash equivalents

6△

Net increase in cash and cash
equivalents

△ 160

97

－

△ 274

－

81

45

－

21

△ 32

－

△ 335

△ 262

－

94

2. Operating Activities (Consolidated)①Sales by Equipment
FY2007
3Q
AmountAudio Visual Equipment

1,501

%

Full-Year
Change Amount

66.5 △ 21.5

1,841

%

3Q
Change Amount

66.5 △ 33.5

1,816

%
75.7

(Units:100million yen,%)
FY2008Full-Year(Projections)
Change Amount

21.1

2,320

%
76.3

Change

26.0

VCRs

37

1.6 △ 41.3

45

1.6 △ 45.1

16

0.7 △ 56.8

20

0.7 △ 55.6

DVD

429

19.0 △ 30.0

524

18.9 △ 40.7

344

14.3 △ 19.8

400

13.2 △ 23.7

－

4

－

108

4.5

－

125

4.1

BD Players

1

0.0

0.2

Televisions211

9.4 △ 61.1

256

9.2 △ 67.4

LCD Televisions

726

32.2

897

32.4

37.2

15.6

76
1,029

3.2 △ 64.0
42.9

41.7

79
1,348

－

2.6 △ 69.1
44.3

50.3

PDP Televisions

3

0.1 △ 94.8

2

0.1 △ 97.8

0

0.0

－

0

0.0

－

Projectors

70

3.1 △ 20.570

2.5 △ 43.5

0

0.0

－

0

0.0

－

Others

24

1.1

41.2

43

1.6

243

10.1

912.5

348

11.4

709.3

Information Equipment565

25.0 △ 21.8

650

23.4 △ 30.3

384

16.0 △ 32.1

446

14.7 △ 31.4

Others192

8.5 △ 2.0

280

10.1

200

8.3

3.9

274

9.0 △ 2.1

2,400 100.0

6.3

Total

2,258 100.0 △ 20.2

65.4

5.6

2,771 100.0 △ 30.1

－2－

3,040 100.0

9.7

②Sales by Areas in Equipment
FY2007
3Q
Amount%Full-Year
Change Amount

Audio Visual Equipment

1,501

66.5 △ 21.5

1,841

North America

1,133

50.1 △ 26.9

EuropeAsia and Others

247
4

%

3Q
Change Amount%(Units:100million yen,%)
FY2008Full-Year(Projections)
Change Amount%

Change66.5 △ 33.5

1,816

75.7

21.1

2,320

76.3

26.0

64.4

65.1

42.3

1,391

50.2 △ 38.5

1,545

36.4

1,979

1.2

288

10.4 △ 15.8

184

7.7 △ 25.5

226

7.4 △ 21.5

0.2 △ 42.9

3

0.1 △ 72.7

1

0.0 △ 75.02

0.1 △ 33.3

11.0

Japan

117

5.2

6.4

159

5.8

3.9

86

3.6 △ 26.5

113

3.7 △ 28.9

Information Equipment565

25.0 △ 21.8

650

23.4 △ 30.3

384

16.0 △ 32.1

446

14.7 △ 31.4

North America

354

15.6 △ 7.3

403

14.5 △ 16.9

154

6.4 △ 56.5177

5.8 △ 56.1

Europe142

6.3 △ 43.2

164

5.9 △ 49.5121

5.0 △ 14.8

141

4.7 △ 14.0

Asia and Others

65

2.9 △ 28.677

2.8 △ 37.4

107

4.5

126

4.1

Japan

4

0.2

Others

192

Total

－

6

0.2

－

2

8.5 △ 2.0

280

10.1

5.6

200

2,258 100.0 △ 20.2

2,771 100.0 △ 30.1

64.6

0.1 △ 50.0
8.3

3.9

2,400 100.0

6.3

63.6

2

0.1 △ 66.7274

9.0 △ 2.1

3,040 100.0

9.7③Sales by Equipment in Areas
FY2007
3Q
Amount%Full-Year
Change Amount%

3Q
Change Amount%(Units:100million yen,%)
FY2008Full-Year(Projections)
Change Amount%

Change66.3 △ 23.1

1,811

65.3 △ 34.6

1,711

71.3

14.2

2,168

71.3

19.7

1,133

50.1 △ 26.9

1,391

50.2 △ 38.5

1,545

64.4

36.4

1,979

65.1

42.3

354

15.6 △ 7.3

403

14.5 △ 16.9

154

6.4 △ 56.5

177

North America

1,499

Audio Visual Equipment
Information Equipment

5.8 △ 56.1

Others12

0.6 △ 25.017

0.6 △ 26.1

12

0.5

0.0

12

0.4 △ 29.4

Europe392

17.4 △ 22.4

456

16.5 △ 32.3

308

12.8 △ 21.3

370

12.2 △ 18.9

Audio Visual Equipment

247

11.0

1.2

288

10.4 △ 15.8

184

7.7 △ 25.5

226

7.4 △ 21.5

Information Equipment

5.0 △ 14.8

142

6.3 △ 43.2

164

5.9 △ 49.5

121

141

4.7 △ 14.0

Others3

0.1 △ 75.04

0.2 △ 33.3

3

0.1

0.0

3

0.1 △ 25.0

Asia and Others

72

3.2 △ 29.491

3.3 △ 34.5

113

4.7

56.9

133

Audio Visual Equipment

4

0.2 △ 42.9

3

0.1 △ 72.7

1

0.0 △ 75.0

2

Information Equipment65

2.9 △ 28.677

2.8 △ 37.4

107

4.5

64.6

0.2

126

4.4

46.2

0.1 △ 33.3
4.1

63.6

0.1 △ 25.0

11

0.4

120.0

5

66.7

5

0.2 △ 54.5

Japan

295

13.1

7.7

413

14.9

7.7

268

11.2 △ 9.3

369

12.1 △ 10.7

Audio Visual Equipment

117

5.2

6.4

159

5.8

3.9

86

3.6 △ 26.5

113

3.7 △ 28.9

Information Equipment

4

0.2

－

6

0.2

－

2

0.1 △ 50.02

0.1 △ 66.7

174

7.7

6.1

248

8.9

7.4

180

OthersOthersTotal

32,258 100.0 △ 20.2

2,771 100.0 △ 30.1

－3－

7.5

3.4

2,400 100.0

6.3

254

8.3

2.4

3,040 100.0

9.7

3．Summary of Third Quarter(Oct.-Dec.)Financial Statements (Consolidated)① Operating Results(Units:100million yen,%)
FY2007

FY20083Q
Amount3Q%

Net Sales

695

100.0

Operating Income%

AmountChangeChange△ 42.0

954

100.0

37.2

△ 7

△ 1.1

－

△ 10

△ 1.1

－

Net Income

7

1.1△ 93.3

△ 35

△ 3.8

－

Net Income/Loss after Tax

12

1.8

△ 86.2

△ 39

△ 4.1

－

（※） Yen-Dollars /exchange rate
(Units:Yen / Dollars)
FY2007

FY2008

3Q

3Q

Average Rate in each Period

113.0294.99② Sales by Equipment(Units:100million yen,%)
FY2007

FY20083Q
Amount3Q
Change%Amount%ChangeAudio Visual Equipment

520

74.8

△ 42.5

779

81.7

49.8

VCRs

12

1.7

△ 45.55

0.5△ 58.3

DVD

135

19.4

△ 53.6105

11.0△ 22.2BD Players

1

0.1

－

32

3.4

－

Televisions

70

10.1

△ 72.119

2.0△ 72.9LCD Televisions

276

39.7

△

7.7

531

55.7

92.4

PDP Televisions

0

0.0△100.00

0.0－

Projectors

22

3.2

22.2

0

0.0

－

4

0.6

△ 42.9

87

9.1

－

113

16.3

△ 51.5

107

11.2

△ 5.3

OthersInformation Equipment
Others

62

8.9

1.6

68

7.1

9.7

Total

695

100.0

△ 42.0

954

100.0

37.2

－4－

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS DEPARTMENT
7-7-1 Nakagaito Daito city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-874-8027