Presentation of Operating Results forthe 2nd Quarter (Apr.‐Sep.) of FY2014

November 5, 2014

FUNAI ELECTRIC CO., LTD.
TSE 68390Outline of Operating Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Summary of 2nd Quarter(Jul.‐Sep.)
Summary of 2nd Quarter (Apr.‐Sep.)
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
Projection of Fiscal 2014 ending March 2015Projection of Sales by Equipment in Fiscal 2014 ending March 2015
Projection of Sales by Geography in Fiscal 2014 ending March 2015

11. Summary of 2nd Quarter (Jul.‐Sep.)(100 million yen)

FY 2013
Jul‐Sep

FY 2014
Jul‐Sep

Y/Y+28S a l e s

700728Operating Income

2234+12)(3.3%)(4.7%)＋18 (※1)

Ordinary Income

2052+32)(2.9%)(7.2%)‐ 3 (※2)

N et I n co m e af te r tax

649+43(0.9%)(6.8%)

98.06

105.34N e t(((MMMaaarrrgggiiinnn)

Average USD‐JPY
Exchange Rate(※1) forex gain and loss+18, interest received+1,others ‐ 1(※3) forex gain+18, interest received +1,others +1(※2) income taxes ‐3(※4) decrease of extraordinary loss+11

Month End Exchange Rate

Jun/13

Sep/13

Jun/14

Sep/14(USD/JPY)

98.59

97.75

101.36109.45( + 4.0%)＋20 (※3)＋11 (※4)2

2. Summary of 2nd Quarter (Apr.‐Sep.)（100 million yen）

FY2013
Apr‐Sep

Forecast
Apr‐Sep

FY2014
Apr‐Sep

S a l e s

1,205937

1,158

Operating Income55( M a r g i n )(0.5%)

Ordinary Income

Y/Y

Y /Y

(Actual base)(Forecast base)‐47+221(‐3.9%)(123.6%)

13+8+8(0.5%)(1.2%)+14 (※1)‐2 (※5)214

27+6+23( M a r g i n )(1.8%)(0.4%)(2.4%)‐1 (※2)+14 (※6)

Net Income after tax

62

26+20+24( M a r g i n )(0.5%)(0.2%)(2.3%)

98.64

100.00103.61

N e t

Average USD‐JPY
Exchange Rate(※1) interest expense ‐1, forex gain+14,interest received +1(※2) extraordinary income +2, income taxes ‐3(※3) forex gain+14, others +1(※5) forex gain ‐5, others +3(※4) increase of extraordinary income +2,
income taxes /others‐1(※6) increase of extraordinary income +2,decrease of extraordinary loss +12

Month End Exchange Rate

Mar/13

Sep/13

Mar/14

Sep/14(USD/JPY)

94.05

97.75

102.92109.45+15 (※3)

+1 (※4)3

3．Breakdown of Sales by Equipment Frat for LCD TVs, but declined for DVD related products.
 Declined for Info. Equipment, due to declined for Printers, but increased Ink Cartridges.
 Declined for Others, for Antennas and Audio Accessories.

1,205（100 million yen）

（100 million yen）

Y/Y

1,158

: ‐ 29( ‐3.1% )DVD Equip. : ‐ 26
LCD TV: ‐ 3( ‐ 15.1%)( ‐ 0.4%)

AV Equipment

Information Equipment :‐ 11( ‐10.4%):‐ 7( ‐ 4.8%):‐ 47 ( ‐ 3.9%)

OthersAVEquipment

Total
D V D ：172
LCD TV ：767

D V D ：146
LCD TV：764

Sales Composition
OthersInformation
Equipment

Information
Equipment

9%DVD

13% 14%DVD
Information Others
Equipment
13% 13%8%FY2013

FY2014

OthersLCD TV(Apr.‐Sep.)(Apr.‐Sep.)

64%

LCD TV66%4

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

172（100 million yen）

146
DVD Players（100 million yen）

Y/Y
DVD Recorders

DVD Players:‐ 14 ( ‐ 33.3% )DVD Recorders:‐ 14 ( ‐ 35.9% )Blu‐ray disc:‐ 6 ( ‐ 8.0% )Others:+ 8 ( +50.0% )

Total

:

‐ 26 ( ‐ 15.1% )Blu‐ray disc

Others(Apr.‐Sep.)(Apr.‐Sep.)

55. Sales of LCD Television Good at shipping for a major mass retailer in U.S. ; nevertheless flat for LCD TVs（100 million yen）

767

764

（100 million yen）

Y/Y
LCD TVs:‐ 3 ( ‐ 0.4% )LCD TVs(Apr.‐Sep.)(Apr.‐Sep.)

6

6. Geographic Breakdown of Sales Declined Americas, due to a drop in sales of DVD-related products and printers in U.S.
 Declined Japan, due to a drop in sales of Blu-ray Disc Recorder and Others.
（100 million yen）

1,205

Americas

982

Y/Y

1,158

Americas: - 32( - 3.3% )Europe:-4( - 9.9% )Asia & Others :-2( - 12.5% )Japan:-9( - 5.6% ):- 47( - 3.9% )Total950
Sales Composition

EuropeAsia & Others
Japan3914170

3512161

Asia &Others

JapanEurope

1%
3% 14%FY2013
Americas

Previous 2Q(Apr.‐Sep.)

Current 2Q(Apr.‐Sep.)Japan
Asia &1%
Others 3%14%
EuropeFY2014
Americas82%

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.

82%

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

Declined
Sales
increase add‐value*
Inceasedadd‐value*

Increase ofgeneral
expenses△7Operating
IncomeSales
declined

5△4△8Operating
Income191323Operating
IncomeIncrease ofgeneral
expenses△7Operating
Income135

営業利益

Previous 2Q

Current 2Q

Forecast 2Q

Current 2Q8

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

AssetsLiabilities
AndNet Assets

1,810

1,813

1,913

Cash / Deposit

403

491589Accounts
Receivables

402

Inventories526Fixed Assets
and Others

479

454

454

Trade Payables

298

329

314

Accounts Payables
and Others

286

308

366

Net Assets

1,226

376

379

492

491
531

1,176

1,233

1,810

1,813

1,913

Sep. 2013

Mar. 2014

Sep. 2014

Comparison to Sep. 2013

Assets+ 103

・Cash / Deposit+ 186

・Accounts Receivables‐

23・Inventories‐

35

・Fixed Assets and Others‐

25

Liabilities+ 96

・Trade Payables+ 16・Accounts Payables
and Others+ 80

Net Assets+7（ Equity Ratio

63.9%）

99. Changes of Inventories（100 million yen）

526
492

Finished products

342316491（100 million yen）

346
Comparison to Sep. 2013

184176

Sep. 2013

Mar. 2014

Sep. 2014

3.0 months

2.0 months

Work in process

Finished products: +4Work in process: ‐ 39145<Inventories Turnover>
2.3 months

1010. Capital Expenditures, Depreciation Expense and R&D Expenditures
2Q (Apr.‐Sep.)
CapitalExpenditures

Depreciation
ExpenseFull Year（100 million yen）

Depreciation
Expense

R&D
Expenditures（100 million yen）

‐ 70

120

CapitalExpenditures

R&D
Expenditures‐3‐4120

10010080

80

6060

109

92

20084

4040

Sep.
2013

2226

23

Sep.
2014

Sep.
2013

Sep.
2014

4339Sep.
2013

Sep.
2014

37205279480
FY2013

FY2014(Projection)

FY2013

FY2014(Projection)

FY2013

FY2014(Projection)

1111. Projection of Fiscal 2014 ending March 2015（100 million yen）

FY2013

Original
Forecast

Revised
Forecast（May 13th 2014） （Nov. 4th 2014）

S a l e s

2,340

2,0002,030

Operating Income‐ 5455( M a r g i n )( ‐ 2.3%)(0.3%)(0.2%)O rd i n a r y I n com e‐ 22414( M a r g i n )( ‐ 1.0%)(0.2%)(0.7%)Net Income after tax‐ 6709( M a r g i n )( ‐ 2.9%)(0.0%)(0.4%)

100.49100.00102.80N e t

Average USD‐JPY
Exchange Rate

Y/YY /Y(Actual base) (Forecast base)‐ 310+ 30( ‐ 13.3%)(+ 1.5%)+ 59‐+ 36+ 10+ 76+912

12．Projection of Sales by Equipment in Fiscal 2014 ending March 2015
（ 100 million yen ）TV related Equipment

DVD related Equipment

2,340
Comparison toPrevious Forecast+ 4.2%

Comparison toPrevious Forecast+ 1.4%
1,436

395296300【Plus Factor】

1,332

Mar.2015

Mar.2015

PreviousForecast

CurrentForecast・DVD/BDs recorderMar.2014

Mar.2014 Mar.2015 Mar.2015

Previous
Forecast

1,278

Current
Forecast

395【Plus Factor】
・Sales increased

189320127118296300

1,278

1,332127118299280

Comparison toPrevious Forecast‐ 6.4%

Comparison toPrevious Forecast‐ 7.1 %

189

2,030

1,436

OthersInformation Equipment

2,000【Minus Factor】
・Sales declined

299280【Minus Factor】
・ Antenna andRelated devices
・ AV Accessories

320

Mar.2014 Mar.2015 Mar.2015
Mar.2014 Mar.2015 Mar.2015

Previous
Forecast

Current
Forecast

Mar.2014Mar.2015

Previous
Forecast

Mar.2015

Current
Forecast

Previous
Forecast

Current
Forecast

1313．Projection of Sales by Geography in Fiscal 2014 ending March 2015
EuropeAmericas（ 100 million yen ）Comparison toPrevious Forecast‐ 13.2%Comparison toPrevious Forecast+ 4.5%
1,850
1,564

1,634

【Plus Factor】
・Sales increased

Mar.2014

Mar.2014 Mar.2015 Mar.2015

PreviousForecast

77

Current
Forecast

6859

Mar.2015

Mar.2015

Previous
Forecast

Current
Forecast

2,030

1,564

1,634

68
2359
19381

345

318

Mar.2014

Mar.2015
Previous
Forecast

Mar.2015
Current
Forecast【Minus Factor】
・AV equipment

1,850

Comparison toPrevious Forecast‐ 7.8%

Comparison toPrevious Forecast‐ 17.4%381

3219Mar.2014 Mar.2015 Mar.2015

Previous
Forecast

2,000

Japan

Asia & Others

23

2,340

Current
Forecast【Plus Factor】
・AV equipment

Mar.2014

345

318

Mar.2015

Mar.2015

Previous
Forecast

Current
Forecast【Minus Factor】
・Antenna andRelated devices

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.

773214

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

15

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

FY2014

1Q

2Q

3Q

4Q

S a l e s

505

700

650

485

430728Operating Income‐ 1722‐1‐ 59‐ 2134( m a r g i n )( ‐ 3.4%)(3.3%)( ‐ 0.2%)(‐ 12.2%)( ‐ 4.9%)(4.7%)O rd i n a r y I n c o m e

12026

‐ 70

‐ 2452( m a r g i n )(0.2%)(2.9%)(4.1%)( ‐ 14.5%)( ‐ 5.7%)(7.1%)Net Income after tax‐0611‐ 84‐ 2349( m a r g i n )( ‐ 0.0%)(0.9%)(1.7%)( ‐ 17.5%)( ‐ 5.4%)(6.7%)

99.23

98.06

102.10102.57101.87105.34

N e t

Average USD‐JPY
Exchange Rate

1Q

2Ｑ

16

2．Quarterly Changes of Sales Amount by Equipment
DVD Equipment

LCD TVs

OthersInformation Equipment（ 100 million yen ）

728

700
650

79

86

121

505

485
430

93

102
60

481

528

397
286

272

236

41

57

39

49

58

41

77

82

91

70

77

75

1Q

2Q

3Q

4Q

1Q

2Q

FY2013

FY201417

3．Quarterly Changes of Sales Amount by GeographyAmericas（ 100 million yen ）EuropeAsia & Others

Japan

728

700
650

505

485
430597

614

523
345

385

336

19695

20875

1Q

2Q

2112

FY201317694117

3Q

4Q

18
61767590

1Q

2Q

FY201418

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.

19