Presentation of Financial Results
for the Fiscal Year 2015

May 17, 2016

FUNAI ELECTRIC CO., LTD.
TSE 6839

0Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Summary for the 4rd Quarter(Jan.‐Mar.)Summary for the Fiscal Year 2015
Summary for the Fiscal Year 2015 (Ordinary Income, Net Income)Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Sales of Information Equipment
Breakdown of Sales by Region
Operating Income Analysis
Financial Conditions
Transition of Inventories
Forecast for the Fiscal Year 2016
Forecast of sales by equipmentForecast of sales by region
Capital Expenditures, Depreciation Expense and R&D Expenditures
11. Summary for the 4rd Quarter (Jan‐Mar)(100 million yen)

FY 2014(Jan‐Mar)FY 2015(Jan‐Mar)YoY Change
(%)

‐84

S a l e s

435

351

(‐19.5%)

Operating Income‐8‐51‐43)(‐1.9%)(‐14.6%)

Ordinary Income‐23‐69)(‐5.5%)(‐19.7%)Net Income Attributableto owners of parent‐25‐264(‐5.9%)(‐75.4%)N e t(((MMMaaarrrgggiiinnn)

Average USD‐JPY
Foreign Exchange RateForeign Exchange Rate
(USD/JPY)

119.23
Dec/14120.55

Mar/15120.17‐46‐239

115.05
Dec/15120.61

Mar/16112.682

2. Summary for the Fiscal Year 2015（100 million yen）

FY2014
Actual

FY2015
Forecast

FY2015
Actual

2,170

1,879

1,681

5-60-130(0.3%)(-3.2%)(-7.8%)

19-75-161)(0.9%)(-4.0%)(-9.6%)Net Income Attributableto owners of parent

13-95-362(0.6%)(-5.1%)(-21.5%)110.62119.86119.98Mar FY2014

Mar FY2015

120.17112.68Net Sales
Operating Income(Margin)

Ordinary Income((MMaarrggiinn

Average USD‐JPY
Foreign Exchange Rate

End of Month USD‐JPY
Foreign Exchange Rate)

YoYChangeVs Forecast
Change-489-198(-22.6%)(89.4%)-135-70-180-86-375-267

3

3. Summary for the Fiscal Year 2015 (Ordinary Income, Net Income)（100 million yen）

FY2014
Actual

FY2015
Actual24
10Non‐operating income
Non‐operating expenses

839‐16+29‐161‐18015
198+4+190

22‐344‐366

918+913‐362‐375

Ordinary Income

19

Extraordinary income
Extraordinary losses

118

Income before Income Taxes
Income taxes

Net Income Attributableto owners of parent(Note:1 Non-operating income and expenses)

YoY Change(%)(Note:1)(Note:2)(Note:2 Extraordinary income and losses)
FY2014FY2015

OthersInterest
incomeDividends
incomeForeign exchange
gain and loss

Extraordinary
incomeExtraordinarylosses

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

2,170

YoY Change (%): ‐ 262( ‐15.2% )DVD Equip. : ‐ 44
LCD TV: ‐ 218( ‐ 14.5%)( ‐ 15.3%)

AV Equipment

1,681

Information Equipment :AV
Equipment

Others1,724
D V D ： 303
LCD TV ：1,421

Total

‐ 76

( ‐60.4%):‐ 151 ( ‐47.2%):‐498 ( ‐22.6%)

1,462
Sales Composition

D V D ： 259
LCD TV：1,203
OthersInformation
Equipment

Information
Equipment

126

Others32050169FY2014

FY2015

DVD15% 14%6%
FY2014
LCD TV

65%

Information
Equipment

Others10%3%

DVD15%FY2015
LCD TV72%5

5. Sales of DVD related Equipment DVD players increased due to the favorable sales of DVD/VCR Combo models
 Blu‐ray disc decreased, because the market has been shrinking.
（100 million yen）

303
DVD Players

61259（100 million yen）

DVD Recorders

63

58
Blu‐ray disc

135
103

Others44
FY2014

YoY Change (%)

73
DVD Players:+ 12 ( +18.4% )DVD Recorders:‐ 5 ( ‐ 7.9% )Blu‐ray disc:‐ 32 ( ‐ 23.9% )Others:‐ 19 (‐ 41.3% )

Total

:

‐44 ( ‐ 14.5% )25FY2015
6

6. Sales of LCD Televisions
 Decreased, due to the decline of LCD‐TVs order on the year‐end sales season in theU.S., the intensive competition in Mexico and downturn sales in regional massmerchandisers（100 million yen）

1,421
1,203
YoY Change (%)
LCD TVsLCD TVs:‐218 ( ‐15.3% )

1,421
1,203

FY2014FY20157

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

126

YoY Change (%)

Information
Equipment

126

Information
Equipment:‐76 ( ‐60.4% )5050

FY2014FY20158

8. Sales Breakdown by Region
 Americas: DVD‐related products increased, LCD TVs and Audio Accessories decreased Japan: LCD TVs increased due to strong sale in large size models for OEM,but DVD,BD‐related products decreased（100 million yen）

YoY Change (%)

2,170
1,681

Americas: - 426( - 24.2% )Europe: - 45

( - 72.9% )Asia & Others : - 11

( - 51.6% )

Japan

Total
Americas

1,766: - 7( - 2.3% ): - 489( - 22.6% )Sales Composition

1,340
Asia &Others
EuropeEurope
Asia & Others
Japan6121322

1610315

FY2014FY2015Japan

1% 15%3%
FY2014
Americas 81%Japan
Asia &18%
Others
1%Europe

1%

FY2015

Americas80%99. Operating Income Analysis
FY2014 vs FY2015＊ Add‐value=Sales – (Cost of sales + selling expenses)（100 million yen）

Operating
Income5△44Declined
add‐value*
Operating
LossSalesdeclined

ᇞ 130
ᇞ 91
Increase ofgeneralexpenses

0FY2014

FY20151010. Financial Conditions（100 million yen）

1,896
Cash / Deposit

Assets

Accounts
Receivables

381

1,542

Assets‐ 354

576

・Cash / Deposit‐ 92・Accounts Receivables‐ 141・Inventories‐ 54・Fixed Assets and Others

‐ 67

573
352
240

Inventories

Liabilities
AndNet Assets

668

Comparison to Mar. 2015

1,820

425

488

371

Fixed Assets
and Others

422

407

Trade Payables

316

185

355
156

Accounts Payables
and Others

302

465

521

Net Assets

1,278

1,170

865

1,896

1,820

1,542

Mar. 2015

Dec. 2015

Mar. 2016

Liabilities+ 59

・Trade Payables‐ 160・Accounts Payables
and Others+219

Net Assets‐ 413（ Equity Ratio55.4%）

11

11. Transition of Inventories（100 million yen）

488
425

Finished products

Work in process

264371
335
227

161

153

144

Mar. 2015

Dec. 2015

Mar. 2016

3.2 months

3.2 months

Comparison to Mar. 2015

Finished products: ‐ 37Work in process: ‐ 17<Inventories Turnover>
2.9 months

1212. Forecast for the Fiscal Year 2016（100 million yen）

FY 2015 (Actual)

NetSalesYoY Change(%)

FY 2016 (Forecast)

1H

2H

Full Year

1H

2H

Full Year

1H

2H

Full Year

868813

1,681779941

1,720-89+128＋39（＋2.3％）

Operating
Income-54-76-130113243(margin)(-6.3%)(-9.3%)(-7.8%)(1.4%)(3.4%)(2.5%)O rd i n a r y
Income-67-94-161

43135(margin)(-7.8%)(-11.6%)(-9.6%)(0.5%)(3.3%)(2.0%)Net Income-76-286-362

21214( m a r g i n )(-8.8%)(-35.2%)(-21.5%)(0.3%)(1.3%)(0.8%)

Average USD‐JPY
Exchange Rate

121.72118.25119.98+65+108+173+71+125+196+78+298+376

112.0013

13. Forecast of Sales by Equipment for the Fiscal Year 2016
TV related Equipment

DVD related Equipment（100 million yen）

【FY2015 vs FY2016】+7.1％【FY2015 vs FY2016】‐ 11.6％2,170303303259229【Minus Factor】
・Market Shrunk

1,421
1,203

1,289

【Plus Factor】

1,681

・Increase LCD‐TV259
FY2014FY2015FY2016FY2014(Forecast)

FY2015

1,720229

FY2016(Forecast)

1,421

OthersInformation Equipment50

FY2014FY2015FY2016(Forecast)

32050
16965137

FY2014FY2015126320651,289【FY2015 vs FY2016】‐ 18.9％【FY2015 vs FY2016】+30.0％

1261,203【Plus Factor】・Increase
Inkjet Printers

169

FY2014FY2015【Minus Factor】
・Audio accessories

137

FY2016(Forecast)

FY2016(Forecast)1414. Forecast of Sales by Region for the Fiscal Year 2016
（ 100 million yen ）EuropeAmericas【FY2015 vs FY2016】+3.4％【FY2015 vs FY2016】
+2.1％
61

1,766
1,3401,384【Plus Factor】
・LCD TVs【Plus Factor】
・Printers

FY2015FY2014FY2016FY2015

1,766

Japan

Asia & Others【FY2015 vs FY2016】‐ 23.3％315311【Minus Factor】
・Ink cartrige

21108

FY2015FY2016(Forecast)1,3401,38461211016178322315311

FY2014FY2015FY2016(Forecast)【FY2015 vs FY2016】‐ 1.2％
322

FY2014

1,720

FY2016(Forecast)(Forecast)

1,681

1716
FY20142,170【Minus Factor】
・LCD TVs

FY2014FY2015FY2016(Forecast)15

15. Capital Expenditures, Depreciation Expense and R&D Expenditures（ 100 million yen ）Capital Expenditures

Depreciation Expense

R&D Expenditures【FY2015 vs FY2016】【FY2015 vs FY2016】‐4.2％‐22.2%【FY2015 vs FY2016】
‐6.5%

4.6%

4.5%

747772FY2014FY2015（proportion of sales）

3.4%

4732

FY20142423

FY2015FY2016(Forecast)

FY20143527

FY2015FY2016(Forecast)

FY2016(Forecast)16

Appendix
1. Quarterly Summary for the FY 2014 and FY2015
2. Quarterly Sales by Equipment for the FY2014 and FY2015
3. Quarterly Sales by Region for the FY2014 and FY201517

1. Quarterly Summary for the FY2014 and FY2015（ 100 million yen ）FY2014FY2015

1Q

2Q

3Q

4Q

1Q

2Ｑ

3Q

4Q

Sales

430

728

577

435

377491

462

351

OperatingI n c o m e‐ 21340‐8‐ 43‐ 11‐25‐51( m a r g i n )( ‐ 4.9%)(4.7%)( 0.1%)(‐ 1.9%)( ‐ 11.4%)(‐2.3%)(‐5.4%)(‐14.6%)

Ordinary Income‐ 245215‐ 23‐ 37‐ 30‐24‐69( m a r g i n )(‐5.7%)(7.1%)(2.6%)( ‐ 5.5%)( ‐ 9.9%)(‐6.1%)(‐5.4%)(‐19.7%)N e t I n c o m e
Attributableto owners of parent‐ 234913‐ 25‐ 40‐ 36‐21‐264(margin)( ‐ 5.4%)(6.7%)(2.3%)( ‐ 5.9%)( ‐ 10.7%)(‐7.5%)(‐4.7%)(‐75.4%)101.87105.34116.04119.23121.72121.72121.44115.05

Net

Average USD‐JPY
Foreign Exchange
Rate182. Quarterly Sales by Equipment for the FY2014 and FY2015
DVD Equipment

LCD TVs

Information Equipment

Others（ 100 million yen ）

728

577
491
430

435

462

377

FY2014351

FY201519

3. Quarterly Sales by Region for the FY2014 and FY2015
Americas

EuropeAsia & OthersJapan（ 100 million yen ）

728

577
491
430

462

435
614

377

351

478
410

338

336

371

291

176
71
1Q

18

12

14

690

582

4

2Q

3Q

FY2014

267

79

3479

617482

1380

4Q

1Q

2Q

3Q

4Q

54FY2015

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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