Presentation of Operating Results in 1st Quarter(Apr.- Jun.) of FY 2009

August 11, 2009FUNAI ELECTRIC.,LTD.
Security code ６８３９0Ⅰ Outline of 1st Quarter (Apr.-Jun.) ofFY2009 Operating Results (Consolidated)

１ Summary of Operating Results (Apr.(Apr.-Jun.)
２ Breakdown of Sales by Equipment
３ Sales of Audio and Visual Equipment
４ Sales of DVD related Equipment
５ Sales of Television related Equipment
６ Geographic Breakdown of Sales
７ Factor of Changes of Operating Income
８ Financial Conditions
９ Changes of Inventories
１０ Capital Expenditures, Depreciation Expense and R&D Expenditures１１ Forecast of Operating Results in 1H and Full FY2009 Ending March 20101

１ Summary of Operating Results (April-June)(100 million yen)

Net Sales

Previous 1Q

Previous 4Q

Current 1Q

amountamountamountChanges
From
Previous1Q

Changes
From
Previous
4Q

594

627

776

＋30.6％＋23.9％

9△1837＋275.0％ー(1.7%)(△3.0%)(4.8%)＋3 (※1)

Ordinary Income44

△1140

△8.2％

Margin

(7.5%)(△1.9%)(5.3%)△9 (※2)△137△1331(△23.2%)(△2.1%)(4.1%)

Average USD- JPY
Exchange Rate

105.43

95.19

96.75

USD-JPY Exchange Rateon Budget

100.00100.0095.00

Operating Income
MarginNet Income after tax
Marginーーー（※1） Interest receivables +3、Forex gain +1、Other △ 1（※2） Income taxes for prior periods △9２2

Breakdown of Sales by Equipment
AV Equipment
Information Equipment
Others776(100 million yen)(100 million yen)

594

Comparison to Previous 1Q
AV Equipment

606
417

Information Equipment：＋2 （＋ 1.9％）

Others：△9 （△13.4％）

Total

107
70

109
61

Previous1Q

Current
1Q： ＋189 （＋45.5％）： ＋182 （＋30.6％）

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３

Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment(100 million yen)606(100 million yen)

417

249

Comparison to Previous 1Q
DVD related Equipment：＋ 61 （＋32.4％）

Television related Equipment：＋128 （＋55.9％）

188

357

：＋189 （＋45.5％）

Total

229

Previous
1Q

４

Current
1Q

4

Sales of DVD related Equipment

Video
DVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc Player
Digital STB

DVD Players

DVD Recorders

・Remarkably increased in particular single DVD player.
・DVD recorders, slightly declined.

(100 million yen)249318843

Previous1Q・Final demand rushed before the end of
on-air analogue broadcasting in June.
(100 million yen)Comparison to Previous 1Q

4238

2161

Digital STB

80

657

Blu-ray disc Player ・Expanded as projected.

86

Current
1Q

Video：△ 3 （△50.0％）

DVD Player related Equipment：＋23 （＋40.4％）

DVD Recorder related Equipment：△ 1 （△ 2.3％）

BD Player：＋17 （＋81.0％）

Digital STB：＋25 （＋41.0％）

Total：＋61 （＋32.4％）
5

５

Sales of Television related Equipment
CRT TVLCD TV

・Accelerated replacement

CRT TV

Otherswith rapid expansion of LCD TV.

(100 million yen)・Thanked for outstanding contribution

LCD TV357

by Philips brand.

3(100 million yen)

229

Comparison to Previous 1Q

26
343
199

６4

11Previous1Q

Current
1Q

CRT TＶ： △ 23 （△ 88.5％）

LCD TV： ＋144 （＋ 72.4％）

Others：＋Total： ＋128 （＋ 55.9％）

7 （＋175.0％）

6Geographic Breakdown of Sales
North America

776

・Substantial increase of LCD TV due to successful introduction ofPhilips brand.
・Handsome gain of DVD related products, in particular single
DVD player and Blu-ray disc player.

Europe594・Organizational restructuring adversely affected sales of AV equipment.
(100 million yen)

588
414

(75.8%)(69.6%)

71
1792

613196

Previous1Q

Current
1Q

Comparison to Previous 1Q
North America：＋174 （＋42.2％）

Europe：△ 10 （△14.6％）

Asia & Others：＋ 14 （＋82.4％）

Japan
Total：＋4 （＋ 3.8％）： ＋182 （＋30.6％）7７Factor of Changes of Operating Income《Comparison to 2008/6》
Sales
Increase《Comparison to 2009/3》

Decreaseof general
Improved expenses
add-value＊
2

Improved
add-value＊

4

Decreaseof general
expenses

5372239Operating
Income37
Operating
Income9Operating
IncomePrevious
1Q

Current
1Q△18Operating
IncomeSales
Increase

Current
1Q

11Previous4Q＊ Add-value=Sales - (Cost of sales + selling expenses)

８

Financial Conditions（100 million yen）

Comparison to 2008/6

2,278
1,998

AssetsCash / Deposit

502

Accounts
Receivables

289

Inventories

564

Fixed Assets
and Others

Trade Payables
Accounts Payables
and Others

Liabilities
andNet Assets

8

Net Assets

923

408
395

965
288
306

2,100
908
389
363

439

440

281

413

362

1,355
1,475

325

1,362

（100 million yen）Assets
・Cash / Deposit＋ 406

・Accounts Receivables＋ 100・Inventories△ 201・Fixed Assets and Others△ 483

Liabilities
・Trade Payables＋・Accounts Payables
and Others△ 705Net Assets
1,998
2,278
2008/6

2009/3

2,100

・Net Assets△ 113（Shareholders’ Equity Ratio 64.6％）

2009/69

９Changes of Inventories
Finished products
Work in process(100 million yen)564
（100 million yen）

306

396

Finished products△ 155Work in process△ 46241

209
168

Comparison to 2008/6363

97122

2008/6

2009/3

2009/62.8months

1.5months

1.4months〈Inventories Turnover〉
10

Capital Expenditures, Depreciation Expenseand R&D Expenditures

１０1Q
CapitalExpenditures

Full Year
R&D
Expenditures

Comparison to Previous 1Q（100 million yen）
160

Depreciation
Expense+1+6

CapitalExpenditures

△1160

140

1201201001008080

60

60

40

40

20

20

3206

2008/6 2009/6

931

10

2008/6 2009/6

R&D
Expenditures（100 million yen）

140

12

Depreciation
Expense

130

142

58

50 4236

2009/3 2010/3

2009/3 2010/30

2008/6 2009/6(Projection）（Projection）

2009/3 2010/3（Projection）

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11

Forecast of Operating Results in
1H and Full FY2009 Ending March 2010（100 million yen）

Forecast 1H

Forecast
FY2009PreviouslyAnnounced
Forecast

Revised
Forecast

1,745

1,745

3,400

Operating Income

415560（ Margin ）(2.3%)(3.2%)(1.8%)

Ordinary Income

385353（ Margin ）(2.2%)(3.0%)(1.6%)Net Income After Tax

303939（ Margin ）(1.7%)(2.2%)(1.1%)Net Sales

12Disclaimer•

This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that thesestatements are based on information relating to factors that may impact futurebusiness performance that was available for analysis at the time this document
was printed. These factors include industry trends relating to the businessareas of Funai Electric Co., Ltd. or the Funai Group, such as audio-visual
devices and information communication equipment, the economic conditions ofboth domestic and international markets, and fluctuations in currency exchange
rates. Actual performance may greatly differ from projections included in thisdocument because of the impacts of uncertainty in such areas as thecompetitive conditions of the electronics industry, market trends, currency
exchange rate, introduction and success of new products, and various otherglobal conditions that may affect the tax system and other systems.

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