Presentation of Operating Results forthe 1st Quarter (Apr.‐Jun.) of FY2014
August 4, 2014

FUNAI ELECTRIC CO., LTD.
TSE 6839

0Ⅰ．Outline of Operating Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Summary of 1st Quarter (Apr.‐Jun.)
Summary of 1st Quarter (Apr.‐Jun.) (Ordinary Income, Net Income)Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD Television
Geographic Breakdown of Sales
Factor of Changes of Operating Income
Financial Conditions
Changes of Inventories
Capital Expenditures, Depreciation Expense and R&D Expenditures

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

FY20131Q

N e t

FY20141Q

S a l e s505

430

Operating Income-17-21)(-3.4%)(-4.9%)

Ordinary Income

1-24)(0.2%)(-5.7%)

I n c o m e-0-23(-0.0%)(-5.4%)

((MM

N e t
(Maaarrrgggiiinnn)

Average USD‐JPY
Exchange Rate

99.23

Y/Y-75(-14.8%)-4-25-23

101.87Month End Exchange Rate

13/3

13/6

14/3

14/6

（USD/JPY）

94.05

98.59

102.92101.362

2．Summary of 1st Quarter (Apr.‐Jun.)(Ordinary Income, Net Income)（100 million yen）

FY2013
1Q
Non‐operating income
Non‐operating expenses

FY2014
1Q
191(note:1)

Y/Y

36‐16+5

Ordinary Income

1‐24‐25

Extraordinary income
Extraordinary loss

0120+2‐10‐22‐22

Income taxes

01+1Net Income‐0‐23‐23

Income before Income Taxes(note:1 Non-operating income and expenses)

Interest
expensesForeignexchange
loss

-1

2

Other-43

3．Breakdown of Sales by Equipment Declined for AV equipment, both of LCD TVs and DVD related products.
 Increased for Info. equipment due to the contribution of Printers and Ink Cartridges.
 Flat for Others, for Antennas and Audio Accessories.
（100 million yen）
（100 million yen）

Y/Y

505

AV Equipment： - 83 （-22.1%）

DVD Equip.： - 33 （- 35.5%）
TV Equip. ： - 50 （- 17.5%）

430

Information Equipment ： + 8 （+17.8%）

OthersAV
Equipment

Information
Equipment379
DVD： 93
T V：286

49296

Total

DVD： 60
T V：236

57

77

Information
Equip.

Others

DVD15%

18%

10%

77
T V 57%FY2013 1Q－ （+ 0.8%）： - 75 （-14.8%）

Sales Composition

FY2013Others：Others

DVD18% 14%
Information
Equip.

13%

FY2014

T V 55%FY2014 1Q
4

4．Sales of DVD related Equipment Declined for DVD and Blu-ray Disc related products, due to the market
shrunk.

93
DVD Players（100 million yen）

22

（100 million yen）

60
DVD Recorders

21
14
13

Blu‐ray disc

DVD Recorders： - 8 （-36.4%）： - 8 （-38.1%）

Blu‐ray disc： - 20 （-47.6%）

Others： + 3 （+37.5%）

Total： - 33 （-35.5%）

DVD Players

4222

Others

Y/Y811FY2013 1Q

FY2014 1Q
5

5．Sales of LCD Television Declined mainly U.S. sales, due to strong sales at a major mass Retailer
last year.
（100 million yen）

286
236

（100 million yen）

Y/YLCD TV

286

FY2013 1Q：- 50 （-17.5%）236

FY2014 1Q
6

6. Geographic Breakdown of Sales Declined Americas, due to a drop in sales of LCD TVs in U.S.
 Declined Japan, due to a drop in sales of Blu-ray Disc Recorders and Others.
（100 million yen）

（100 million yen）

505

Y/Y

430

Americas： - 49 （-12.7%）

Europe： - 2 （-10.5%）

Asia & Others
Americas385336：－ （ －）

Japan： - 24 （-25.3%）

Total： - 75 （-14.8%）

Sales Composition
EuropeAsia & Others

196Japan95
FY2013 1Q

17671
FY2014 1Q

Asia&Others

Europe

Japan

19%
1%4%

Asia&Others

EuropeJapan

1% 17%
4%

FY2013

FY2014

Americas 76%

Americas 78%

Note : Effective from FY2014, sales to Central and South America, which were previously included in the Asia and others , have been included in Americas.
The segment name North America has been changed to Americas. Figures for FY2013 have been restated accordingly.

77. Factor of Changes of Operating Income＊ Add‐value=Sales – (Cost of sales + selling expenses)（100 million yen）

Y/Y-17
Operating
IncomeDecrease ofGeneral
Expenses-5

FY2013 1Q-21

Sales Decline

Operating
Income+1

FY2014 1Q

88. Financial Conditions（100 million yen）
（100 million yen）

Cash / Deposit

AssetsLiabilities
AndNet Assets

1,978

前Y 期/Y比

1,813

1,763

491

455

Assets

- 215

376

328

・Cash / Deposit+ 15492531

・Accounts Receivables- 70

・Inventories- 126

・Fixed Assets and Others

- 34

440

Accounts
Receivables

398

Inventories

657

Fixed Assets
and Others

483

454

449

Trade Payables387

329

285

Accounts Payables
and Others

367

308

338

Net Assets

1,224

1,978
2013/6

1,176

1,140

1,813

1,763

2014/3

2014/6

Liabilities- 131

・Trade Payables- 102

・Accounts Payables
and Others-Net Assets（ Equity Ratio

29- 84
64.0%）

99. Changes of Inventories（100 million yen）

657
531
492
Finished products

324（100 million yen）

316

Work in process

371

333
176

160

2013/6

2014/3

2014/6

3.9 months

3.0 months

3.7 months<Inventories Turnover>

Y/Y
Finished products： + 47Work in process： ‐ 1731010. Capital Expenditures, Depreciation Expense and R&D Expenditures
1Q
CapitalExpenditures

Depreciation
ExpenseFull Year
R&DExpenditures

CapitalExpenditures

R&DExpenditures（ 100 million yen ）（ 100 million yen ）

120

120

Y/Y
‐2Y/Y
‐61

Y/Y
‐6100

10080

80

60

60

40

Depreciation
Expense109844072

2020110FY2013 FY2014
Q1Q1221311FY2013 FY2014
Q1Q1495284

58160

FY2013 FY2014
Q1Q1

FY2013 FY2014

FY2013 FY2014

FY2013 FY2014(Projection)(Projection)(Projection)

11Ⅱ. Appendix
1. Quarterly Operating Summary of FY 2013 ‐ 2014
2. Quarterly Changes of Sales Amount by Equipment
3. Quarterly Changes of Sales Amount by Geography
4. Projection of FY 2014 ( Full Year )5. Projection of Sales by Equipment in FY 2014 ( Full Year )6. Projection of Sales by Geography in FY 2014 ( Full Year )12

1．Quarterly Operating Summary of FY 2013 ‐ 2014
（ 100 million yen ）FY2013

FY2014

1Q

2Q

3Q

S a l e s

505

700

650

485

430

Operating Income‐1722‐1‐59‐21)(‐3.4%)(3.3%)(‐0.2%)(‐12.2%)(‐4.9%)

Ordinary Income

12026‐70‐24)(0.2%)(2.9%)(4.1%)(‐14.5%)(‐5.7%)

I n c o m e‐0611‐84‐23(‐0.0%)(0.9%)(1.7%)(‐17.5%)(‐5.4%)

99.23

98.06

102.10102.57101.87N e t((N e t(M a r g i n

M a r g i n

M a r g i n

Average USD‐JPY
Exchange Rate)

4Q

1Q

13

2．Quarterly Changes of Sales Amount by Equipment（ 100 million yen ）DVD Equipment

TV Equipment

Information Equipment

Others

700
650
79
121

505

485
430

93

10260

481
397
286

272

236

49

58

4177

82

91

70

77

1Q

2Q

3Q

4Q

1Q

FY20134157

FY201414

3 ． Quarterly Changes of Sales Amount by Geography
Americas

EuropeAsia & OthersJapan（ 100 million yen ）700
650505485430597523345385336

19695

20875

1Q

2Q

FY2013211217694117

17671

3Q

4Q

1Q

FY201415

4 ． Projection of FY 2014 ( Full Year )（100 million yen）

FY 2014

FY 2013N e t

S a l e s

1H

2H

1,205

1,135

Y/Y(Projection)
12 months

2,340

1H

2H

937

1,063

12 months

2,000

1H

2H-268-72

12 months-340（-14.5％）

Operating Income

5-60

-54

505

( m a r g i n )(0.5%)(-5.3%)(-2.3%)(0.5%)(0.0%)(0.3%)

Ordinary Income

21-44-22404( m a r g i n )(1.8%)(-3.9%)(-1.0%)(0.4%)(0.0%)(0.2%)

Income6-73-67

2-20( m a r g i n )(0.5%)(-6.5%)(-2.9%)(0.2%)(-0.2%)(0.0%)

Average USD‐JPY
Exchange Rate

98.64

102.34100.49Net－+60+59-17+44+26-4+71+67

100.0016

5 ． Projection of Sales by Equipment in FY 2014 ( Full Year )TV related Equipment

DVD related Equipment（100 million yen）

2,340
【FY2013 vs FY2014】‐ 11.0％【FY2013 vs FY2014】‐ 25.1％
1,436395296

FY2013

1,278【Minus Factor】
・DVD players, andrecorders
・Blu‐ray disc players(Projection)

FY2014(Projection)

1,4361,278【FY2013 vs FY2014】‐ 6.6％【FY2013 vs FY2014】‐ 32.8％189320【Minus Factor】
・Printers

189299【Minus Factor】
・Audio accessories

320
FY2013

FY2013

FY2014(Projection)

2,000296

OthersInformation Equipment

127【Minus Factor】
・Especially, sales for Mexico
and North America

FY2013

FY2014395

FY2013

FY2014(Projection)

127299FY2014(Projection)17

6 ． Projection of Sales by Geography in FY 2014 ( Full Year )（ 100 million yen ）EuropeAmericas

2,340【FY2013 vs FY2014】‐ 15.5％
1,850
1,564

FY2013【Minus Factor】
・LCD TVs
・DVD‐related products
・Printers【FY2013 vs FY2014】‐ 11.7％7768

FY2013

FY2014FY2014

1,564【FY2013 vs FY2014】‐ 28.1％38132

FY2013

FY2014(Projection)

1,850

Japan

Asia & Others

23【Minus Factor】
・Printers(Projection)(Projection)

2,000【FY2013 vs FY2014】‐ 9.4％

7732345【Minus Factor】
・Printers【Minus Factor】
・DVD‐related products
FY20133816823345

FY2014(Projection)

FY2013Note : Effective from FY2014, sales to Central and South America, which were previously included in the Asia and others , have been included in Americas.
The segment name North America has been changed to Americas. Figures for FY2013 have been restated accordingly.

FY2014(Projection)

18

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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