Presentation of Operating Results forthe 3rd Quarter (Apr.‐Dec.) of FY2014

February 2, 2014

FUNAI ELECTRIC CO., LTD.
TSE 68390Outline of Operating Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Summary of 3rd Quarter(Oct.‐Dec.)
Summary of 3rd Quarter (Apr.‐Dec.)
Summary of 3rd Quarter (Apr.‐Dec.) ‐Ordinary Income/Net Income (after tax)
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 3rd Quarter (Oct.‐ Dec.)（100 million yen）

FY20133Q

FY2014
3Q

Y/Y

S a l e s

650577

Operating Income‐10)(‐0.2%)(0.1%)

Ordinary Income

2615)(4.1%)(2.6%)N et I n co m e af te r tax

1113(1.7%)(2.3%)

102.10116.04N e t(((mmmaaarrrgggiiinnn)

A v e r a g e
U S D ‐ J P Y
Exchange Rate
Month End
Exchange Rate

13/9

13/12

14/9

14/12

USD ‐ JPY

97.75105.39

109.45120.55‐73(‐11.2%)＋1‐11＋22

2．Summary of 3rd Quarter (Apr.‐ Dec.)（100 million yen）

FY20133Q

FY2014
3Q

Y/Y

S a l e s

1,855

1,735

Operating Income

413)(0.2%)(0.8%)

Ordinary Income

4842)(2.6%)(2.5%)N et I n co m e af te r tax

1739(0.9%)(2.3%)

N e t(((mmmaaarrrgggiiinnn)

A v e r a g e
U S D ‐ J P Y
Exchange Rate

99.80

‐120(‐6.4%)＋9‐6＋22107.75

Month EndExchange Rate

13/3

13/12

14/3

14/12

USD ‐ JPY

94.05

105.39102.92120.55
33．Summary of 3rd Quarter (Apr.‐ Dec.) Ordinary Income/Net Income（100 million yen）

FY20133Q

FY20143Q

Non‐operating Income
Non‐operating Expenses

50
6Ordinary Income

48

Extraordinary Income
Extraordinary Loss

027

Income before Income taxes
Income taxes and others

Net Income（※1 Non‐operating Income and Expenses）

Y/Y34
5‐16‐142‐620+2‐27

21

44+23

4

5+11739+22（※1）（※2）（※2 Extraordinary Income and Loss）
FY2013

FY201444．Breakdown of Sales by Equipment
 Audiovisual Equipment, revenues from LCDTVs decreased on year over year, and salesof DVD‐related products also declined due to market contraction.
 Information Equipment, although revenues from Ink Cartridge increased, lower
revenues from Printers.
 Other products also declined, mainly affected after the consumption tax increase forAntennas, and selective reduction of the range of Audio Accessories line‐ups.

1,855

Y/Y

（100 million yen）

1,735

（100 million yen）

AV Equipment：: ‐72 （‐4.9%）

DVD equip.
T V equip.

： ‐50 （‐17.1%）： ‐22 （‐1.9 %）Information Equipment : ‐35 （‐23.7%）
AVEquipment

1,457

1,385

DVD： 293
T V ：1,164

DVD： 243
T V ：1,142

Others

148
250

113

: ‐13 （‐5.1%）

Total： ‐ 120 （‐6.4%）

Sales Composition
Information
Equip.

Information
Equipment

OthersOther8%DVD

13% 16%

Information
Equip.

Other DVD14%
7% 14%FY2012FY2013

T V 63%

T V 65%237

FY2013

FY2014（Apr.‐Dec.）（Apr.‐Dec.）

55．Sales of DVD related Equipment
 Due to market contraction, both of declined Y/Y for DVD and Blu‐ray products.

293DVD Players

67（100 million yen）

243
Y/Y48
DVD Recorders

7047

Blu‐ray disc119

： ‐19 （‐28.4%）
DVD Recorders ： ‐23 （‐32.9%）： ‐10 （‐8.4%）
Blu‐ray disc： + 2 （+5.4%）
Others
DVD Players

109
TotalOthers

3739

FY2013（Apr.‐Dec.）

FY2014（Apr.‐Dec.）： ‐50 （‐17.1%）

6

6．Sales of LCD Televisions
 Despite a strong year‐end selling season, revenues declined Y/Y, due to lower sales
for LCDTV/DVD combos.
（100 million yen）

1,164

1,142

Y/Y

1,164

1,142

FY2013（Apr.‐Dec.）

FY2014（Apr.‐Dec.）

LCD TV：‐ 22 （‐1.9%）

LCD TV77．Geographic Breakdown of Sales
 For Americas, due to lower sales for LCDTV/DVD combos.
 For Japan, mainly DVD related equipment declined, due to market contraction.
（100 million yen）

1,855

Americas

1,505

Y/Y

1,735

Americas： ‐ 77 （‐5.1%）

Europe： ‐ 13 （‐21.2%）

Asia & Others： ‐ 9 （‐33.3%）

Japan： ‐ 21 （‐7.9%）

Total： ‐ 120 （‐6.4%）

1,428
Sales Composition
Asia&Others

EuropeAsia & Others
JapanEurope60
26
2644717243

FY2013（Apr.‐Dec.）

FY2014（Apr.‐Dec.）Japan

Asia&Others

2% 14%3%
FY2012

Americas 81%

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.

EuropeJapan

1% 14%
3%
FY2013
Americas 82%

88．Factor of Changes of Operating Income＊ Add‐value=Sales – (Cost of sales + selling expenses)

Increased
add‐value*

Increase ofgeneral
expenses‐9OperatingIncome

27

OperatingIncome

134‐9（100 million yen）

Sales
declined

Previous3Q営業利益

Current 3Q

99．Financial Conditions（100 million yen）
（100 million yen）

Cash / Deposit

AssetsLiabilities
AndNet Assets

1,844

1,813

1,869

447

491

606

Comparison to Dec. 2013

Assets+25

・Cash / Deposit+ 159

Accounts
Receivables

453

376

431

・Accounts Receivables‐

22

Inventories

466

492

531
377

・Inventories‐

89

・Fixed Assets and Others‐

23

Fixed Assets
and Others

478

454

455

Trade Payables

261

329

204

Accounts Payables
and Others

306

308

Net Assets

1,277

1,176

360

1,305

1,844

1,813

1,869

Dec. 2013

Mar. 2014

Dec. 2014

Liabilities‐3・Trade Payables‐ 57・Accounts Payables
and Others+ 54

Net Assets+28（ Equity Ratio69.2%）

10

10．Changes of Inventories

466

492377

Finished products

313316（100 million yen）

264

Work in process

153

176

2013/12

2014/3

2014/122.2 months

3.0 months

2.0 months

Comparison to 2013/12
Finished products： ‐ 49Work in process： ‐ 40113<Inventories Turnover>1111. Capital Expenditures, Depreciation Expense and R&D Expenditures
3Q (Apr.‐Dec.)
CapitalExpenditures

Depreciation
ExpenseFull Year（100 million yen）

Depreciation
ExpenseR&D
Expenditures（100 million yen）

‐ 71

120

CapitalExpenditures

R&D
Expenditures‐4‐7120

10010080806060

109994040643920028Dec.
2013

Dec.
2014

Dec.
2013

5735Dec.
2014

3720Dec.
2013

Dec.
2014

5284

79

FY2013

FY2014(Projection)

48

0
FY2013

FY2014(Projection)

FY2013

FY2014(Projection)

12

Appendix
1. Quarterly Operating Summary of FY 2013 / 2014
2. Quarterly Changes of Sales Amount by Equipment
3. Quarterly Changes of Sales Amount by Geography13

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

FY2013

FY2014

1Q

2Q

3Q4Q

1Q

2Ｑ

3Q

N e t S a l e s505

700

650

485

430728577

Operating Income‐1722‐1‐59‐21340(m a r g i n)(‐3.4%)(3.3%)(‐0.2%)(‐12.2%)(‐4.9%)(4.7%)(0.1%)

Ordinary Income

12026‐70‐245215n)(0.2%)(2.9%)(4.1%)(‐14.5%)(‐5.7%)(7.1%)(2.6%)Net Income
after tax

‐0611‐84‐234913（ m a r g i n ）(‐0.0%)(0.9%)(1.7%)(‐17.5%)(‐5.4%)(6.7%)(2.3%)

Average USD‐JPY
Exchange Rate

99.23

98.06

102.10102.57

101.87105.34116.04(margi14

2．Quarterly Changes of Sales Amount by Equipment
DVD Equipment

LCD TVs

Information Equipment

Others（100 million yen）

728

700
650

577505485
430

FY2013

FY201415

3．Quarterly Changes of Sales Amount by Geography
Americas

EuropeAsia & OthersJapan（100 million yen）

728

700
650

577
505

485
430
597

614

523

478

345

385

336

19695

20
875

1Q

2Q

FY2013

17

21
12694

117

617
71

3Q

4Q

1Q

618

12590

82

2Q

3Q

FY201416

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.

17