Presentation of Financial Results
First Quarter (Apr.-Jun) of FY2019

August 5, 2019FUNAI ELECTRIC CO.,LTD.
TSE68391

Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Summary of 1st Quarter (Apr.-Jun.)
Summary of 1st Quarter (Apr.-Jun.)
Breakdown of Sales by Equipment
Sales of DM related Equipment
Sales of LCD related Equipment
Sales of PS Equipment
Geographic Break Down of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures21. Summary of 1st Quarter (Apr.-Jun.)〈100 million yen〉

FY20181Q

FY20191Q

Difference(Y / Y)Net Sales216

156

Operating Income-12-9(-5.7%)(-5.8%)-9-12(-4.2%)(-7.3%)-0-12(-0.1%)(-7.6%)

109.53109.66(Margin)

Ordinary Income(Margin)

Net Income
Attributableto owners of parent(Margin)Average USD-JPY
Exchange Rate
Month End
USD-JPY
Exchange Rate

Mar.2018

Jun.2018

Mar.2019

Jun.2019

106.24110.54110.99107.79-60（-27.8%）＋3-3-1232. Summary of 1st Quarter (Apr.-Jun.)〈100 million yen〉

FY20181Q

Operating incomeFY2019
1Q

Difference(Y / Y)-12-9＋33025-1+5-9-12-3000000-9-12-3

Income taxes-9-0+9Net Income Attributableto owners of parent-0-12-12

Non-operating income
Non-operating expenses（note:1）

Ordinary Income
Extraordinary income
Extraordinary losses（note:2）

Income before Income Taxes(note:1 Non-operating income and expenses)
2018.1Q

11(note:2 Extraordinary income and losses)
2018.1Q

2019.1Q

20000-2
Interest income

2019.1Q

InterestForeign exchange

Payments

gain and loss-20Extraordinary income00

Extraordinary losses

Others4

3. Breakdown of Sales by Equipment
 AV Equipment：Decreased due to decline in DM and TV related sales due toUS-China trade friction
 PS Equipment：Sales of a new product, nail art printers, also declined due to lower
sales of label printers〈100 million yen〉

216

Y/Y（Change）
AV Equip-53( -28.0%)

DM Equip-11( -30.2%)

TV Equip-42( -27.5%)

PS Equip-3( -25.2%)

Others-4( -25.3%)

Total-60( -27.8%)

156

AV Equipment

189
DM ： 35
T V ：154136
DM ： 24
T V ：112

Sales Composition
Others
8%PS
5%

PS Equipment

Others1017713

FY2018.1Q

FY2019.1Q

DM16%

FY2018
1Q
TV71%

PS

Others
8%
5%

DM
16%

FY20191Q
T V 71%

54. Sales of DM related Equipment Decrease in sales due to the decline in demand for DVD / BD-related products
due to the widespread use of video streaming services and growing demand
for smart TVs.
〈100 million yen〉

35
Y/Y（Change）

BD Recorders

2124
12

BD Players
DVDOthers

9

BD Recorders-9( -40.0%)

BD Players-1( -12.1%)

DVD-3( -88.7%)

Others+2(+197.7%)

Total-11( -30.2%)

84
113

FY2018.1Q

FY2019.1Q
6

5. Sales of LCD Television
 Revenue declined due to steep decline in unit price due to intensifying pricecompetition while new sales due to excess inventory stagnated due to USChina trade friction.
〈100 million yen〉

154
Y/Y（Change）

112

LCD TVLCD TV-42(-27.5%)

154
112

FY2018.1Q

FY2019.1Q
7

6. Sales of PS Equipment
 Sales of new nail art printers started, but sales declined due to sluggish sales of inkcartridges for inkjet printers and sluggish sales of label printers.
〈100 million yen〉

10Y/Y（Change）
Label printers

4

Nail Art PrinterInk-cartridges

7

Label printers

-4(-)

1

Nail Art Printer＋1(-)

Ink-cartridges0(合計-3( -25.2%)

6

6

FY2018.1Q

FY2019.1Q＋1.8%)

8

7. Geographic Breakdown of Sales
 Americas：Due to the impact of US-China trade friction, the entire North American
market became overstocked, and new sales of TV and DVD / BD related products
declined due to sluggish growth.
Y/Y（Change）〈100 million yen〉

216156

Americas

Americas-52( -37.4%)

Europe0( +18.7%)

Asia & Others-7( -78.1%)

Japan-1(Total-60( -27.8%)-0.2%)

14088
Others1Asia

9126665

Japan

FY2018.1Q

FY2019.1Q

Sales Composition
Japan

30%
Asia &Others
5%

FY2018
1Q
Americas 65%

Japan

42%

Asia &Others
2%

FY20191Q
56%
Americas98. Operating Income Analysis (Y/Y)

〈100 million yen〉

Y/Y（Change）
FY2018.1Q

FY2019.1Q
Operating
Loss

OperatingLoss△9△ 12

Increased of
Add-value

Sales
Decrease△2Decrease ofGeneral
Expenses+8△3109. Balance Sheet Conditions
Y/Y（Change）〈100 million yen〉

Cash / Deposit
Accounts
Receivables

AssetsInventories
Fixed Assets
and Others
Trade Payables

Accounts Payables
and Others
Liabilities

AndNet Assets

Net Assets

Assets

-38

796

832

794

・Cash / Deposit

-63

321

354

・Accounts Receivables

-22

105
221

77
252

291
55
292

・Inventories

+40

149
144
140

149
156
136

156
137
135

512

540

522

796

Jun.2018

832

Mar.2019

794

・Fixed Assets andOthers+7

Liabilities-20

・Trade Payables-19

・Accounts Payables
and Others-1

Net Assets-18（Equity Ratio

65.6%）Jun.201911

10. Inventories Trends

Y / Y (Change)

Finished products： + 17Work in process： + 23〈100 million yen〉

5.6

<Inventories Turnover period in months>

4.1

442

215

3.4

2.6

3.3

3.1

452

253

319

185

Finished products

199

Work in process

Jun.2017

3.1
2.1

236

227

3.1

Sep.2017

134
Dec.2017

221

256
112

132

118

104

103

Mar.2018

Jun.2018

144

Sep.2018

292

238
141

252
135

97

117

Dec.2018

Mar.2019

152

140

Jun.201912

11. Capital Investment, Depreciation and R&D
Full YearFirst Quarter
CapitalInvestment

Depreciation

R&D

Y/Y0Y/Y+1Y/Y0〈100 million yen〉
14

CapitalInvestment

Depreciation

R&D〈100 million yen〉
60

1250591040558131330620423103210
FY2018 FY2019
1Q

1Q

15911FY2018

FY20190FY2018 FY2019
1Q

141Q

FY2018 FY2019
1Q

1Q

FY2018FY2019(Forecast)(Forecast)

FY2018FY2019(Forecast)13

Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography

141. Quarterly Financial Summary of FY 2018 - 2019〈100 million yen〉

FY2018Net Sales
Operating Income( Margin )Ordinary Income( Margin )Net Income Attributableto owners of parent( Margin )Average USD-JPY
Exchange Rate

FY2019

1Q

2Q

3Q

4Q

1Q

216

251343245

156

-12-4

1111-9(-5.7%)(-1.6%)(3.4%)(4.8%)(-5.8%)-9

7+014-12(-4.2%)(2.9%)(0.2%)(6.1%)(-7.3%)-0

6+019-12(-0.1%)(2.7%)(0.2%)(7.8%)(-7.6%)

109.53111.88112.57110.27109.6615

2. Quarterly Sales Trends by Equipment
DM Equipment

TV Equipment

PS Equipment

Others〈100 million yen〉

343
36216251245

303035289
201

156
196

154

24112

1017

911

1Q

2Q

7FY2018

117127
13

3Q

4Q

1Q
FY201916

3. Quarterly Sales Trends by Geography
Americas

Others

Asia

Japan

〈100 million yen〉

343

251

245

216

243
163

153

156

140
1
966
1Q

112

1

1
185

98

90

2Q

3Q

4Q

FY2018881265
1Q
Fy201917

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.

18