Presentation of Operating Results in 3rdQuarter (Apr.- Dec.) of FY 2010

January 31 , 2011
FUNAI ELECTRIC.,LTD.
Security code
６８３９
証券コード６８３９0

Ⅰ．Outline of Operating Results
1. Summary of Operating Results (Oct.(Oct.-Dec.)
2. Summary of Operating Results (Apr.(Apr.-Dec.)
3. Breakdown of Sales by 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 Expenditures
Expenditures
11. Forecast of Operating Results of FY2010 ending March 2011
12. Forecast of Sales by Equipment of FY2010 ending March 2011

11．Summary of Operating Results (Oct.- Dec.)(100 million yen)

FY 2009

FY 2010

Changes From
Previous 3Q△50Net Sales

810

760

(△6.2%)

Operating Income

14△5△19(1.8%)(△0.7%)

24△7(3.0%)(△0.9%)

18△16(2.3%)(△2.2%)

MarginOrdinary Income
MarginNet Income after tax
MarginAverage USD- JPY
Exchange Rate
Month End
Exchange Rate
(USD/JPY)

90.11△2 (※1)△12 (※3)△31△9(※2)△3(※4)△3482.21

09/909/12

10/910/12

90.21

92.10

83.82

81.49

（※1） Forex loss △2（※3） decrease of interest receivables △1、decrease of forex gain △11（※2） Extraordinary gain +3、Income taxes △12（※4） increase of extraordinary gain +3、increase of income taxes △62

2．Summary of Operating Results (Apr.- Dec.)(100 million yen)

FY 2009

Net Sales
Operating Income
MarginOrdinary Income
MarginAverage USD- JPY
Exchange Rate
Month End
Exchange Rate
(USD/JPY)

Changes From
Previous 3Q△1802,4802,300(△7.3%)

11540△75(4.7%)(1.8%)

12040(4.9%)(1.8%)

9121(3.7%)(1.0%)Net Income after tax
MarginFY 201093.22±0 (※1)

△5 (※3)△80△19(※2)+10(※4)

△70

86.17

09/3

09/1210/3

10/12

98.23

92.10

93.04

81.49

（※1） Interest receivables+3、Forex loss△3（※3） decrease of interest receivables△3、increase of forex loss△2（※2） Extraordinary gain+3、Extraordinary loss△1、Income taxes△21（※4） increase of extraordinary gain +3、increase of extraordinary loss △1、
decrease of income taxes +83

3．Breakdown of Sales by Equipment
AV Equipment
Information Equipment
Others(100 million yen)(100 million yen)

2,480

Comparison to Previous 3Q

2,300： △327 （△17.8％）

AV Equipment：：DVD Equip.
T V Equip.

1,839

1,512

DVD： 587
T V ：1,252

DVD： 482
T V ：1,030△105△222（△ 17.9％）（△ 17.7％）

Information Equipment： ＋ 61 （＋14.6％）

Others： ＋ 86 （＋39.6％）

Total： △180 （△ 7.3％）※ From FY2010 antenna set for North America is424485

※ 217

303

Previous 3Q(Apr.-Dec.)

Current 3Q(Apr.-Dec.)classified in 'Others' from 'Others in TV related
equipment on Audio Visual Equipment' which wasclassified in FY2009.The sales amount of antenna set
for North America in the 3rd quarter in FY2009 was2,800 mil. yen.
44．Sales of DVD related Equipment
DVD Player Equipment
DVD Recorder Equipment

Blu-ray disc
Others(100 million yen)587

DVD Players

DVD Recorders

・Demand in U.S. for DVD player and DVD recorder tracked themarket contraction.

Blu-ray disc・BRD recorder more gained thandecline of BRD player.

482
205

Others・Digital STB ended the life in the U.S
market in June 2009.
(100 million yen)

108

Comparison to Previous 3Q126

97DVD Players

135
121

Previous 3Q(Apr.-Dec.)：△ 97 （△47.3％）

DVD Recorders ：△ 29 （△23.0％）

246
31
Current 3Q(Apr.-Dec.)

Blu-ray disc：＋111 （＋82.2％）

Others：△ 90 （△74.4％）

Total：△105 （△17.9％）

5

5．Sales of Television related Equipment
CRT TVLCD TVLCD TV(100 million yen)・The overall sales declined due to sluggish demand in North
America, though Japan increased backed up by Government
ʻEco-pointʼ program.

1,252
61,030(100 million yen)Comparison to Previous 3Q
1,246
1,030

Previous 3Q(Apr.-Dec.)

CRT TV：△6 （−）

LCD TV： △216 （△17.3％）

Total： △222 （△17.7％）

Current 3Q(Apr.-Dec.)

6

6. Geographic Breakdown of Sales
North AmericaEurope
Asia & OthersJapan(100 million yen)

2,480

2,300

North America

・LCD TV largely dropped and DVD related
devices including digital STB also declined.

Europe・LCD TV were almost flat, and DVD related
devices declined.

Japan・‘Eco-point’ contributed to increase in LCD TV,
antennas and related devices and BRD recorder.
(100 million yen)

1,802(73％)

1,240(54％)

198 (8％)179 (8％)239 (10％)134 (5％)305 (12％)Previous 3Q(Apr.-Dec.)

683

Comparison to Previous 3Q
North America： △562 （△31.2％）

Europe： △ 41 （△17.0％）

Asia & Others ： ＋ 45 （＋33.6％）
Japan： ＋378 （＋124.0％）

Total： △180 （△ 7.3％）(30％)

Current 3Q(Apr.-Dec.)

77． Factor of Changes of Operating Income《Comparison to 2009/12》＊ Add-value=Sales - (Cost of sales + selling expenses)

Sales
decrease△21Add-value
deteriorated＊△65115Decreaseof generalexpenses

Operating
Income1140
OperatingIncome

Previous 3Q

Current 3Q(Apr.-Dec.)(Apr.-Dec.)

88．Financial Conditions（100 million yen）

Cash / Deposit

AssetsLiabilities
andNet Assets

2,166

917

Comparison to 2009/12
2,040
860

2,036
Assets△ 130

・Cash / Deposit

△ 294

423

・Accounts Receivables＋

82

・Inventories＋

65

・Fixed Assets and Others

＋

17623

Accounts
Receivables

341

351

Inventories

484

384

549

Fixed Assets
and Others

424

445

441

Trade Payables

411

328

Accounts Payables
and Others

357

313
300

Net Assets

1,398

2,166
2009/12

1,427

379

1,329

2,040

2,036

2010/3

2010/12

Liabilities△ 61・Trade Payables△ 83・Accounts Payables
and Others＋ 22Net Assets△ 69（Shareholder’s Equity Ratio 64.8％）

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

549

484

(100 million yen)

384

Comparison to 2009/12

350
326

208

158

176

199

2009/122010/3

2010/121.8months

1.7months

2.2months

Finished products＋ 24Work in process＋ 41〈Inventories Turnover〉
10

Capital Expenditures, Depreciation Expense

10. and R&D Expenditures
3Q

Full Year

CapitalExpenditures

DepreciationExpense

R&DExpenditures＋21＋4△1（100 million yen）

CapitalExpenditures

160140140120120100

1008080606096 95
33134 140

40685420

R&D
Expenditures（100 million yen）

160

40

Depreciation
Expense31

203543434700

2009/12 20010/12

2009/12 2010/12

2009/12 2010/12

2010/3 2011/3(Projection）

2010/3 2011/3（Projection）

2010/3 2011/3（Projection）

11

of Operating Results of FY2010
11. Forecast
ending March 2011(100 million yen)

FY 2009
Results

Revision ofForecast

Revision ofForecast(2010(2010//11/11/2)(2011/1/31)

Changes

Changes from
From
Previous year Revision ofForecast

△199

△250

3,149

3,2002,950(△6.3%)（92.2％）

1119010△101△80

Margin

(3.5%)(2.8%)(0.3%)±0 (※1)

Ordinary Income

1169210△106

Margin

(3.7%)(2.9%)(0.3%)△28 (※2)10371△18△121(3.3%)(2.2%)(△0.6%)Net Sales
Operating Income

Net Income after tax
MarginAverage USD- JPY
Exchange Rate

92.60

85.57

△2(※5)△5(※3)△82△15(※4)△7(※6)△8985.38（※1） Interest receivables+4、Forex loss△3、 （※3） decrease of interest receivables △3、Interest paybable△1
increase of forex loss △2（※2） Extraordinary gain +3、Extraordinary loss △1 （※4） increase of extraordinary gain +2、Income taxes△30
decrease of extraordinary loss +8、increase of income taxes △25（※5） increase of forex loss △2（※6） increase of extraordinary gain +3、increase of income taxes △10
12of Sales by Equipment of FY2010
12. Forecast
ending March 2011
AV Equipment
Information Equipment
OthersComparison to Previous year
AV Equipment(100 million yen)

3,149

2,299
DVD： 699
T V ：1,600

3,200

2,237
DVD： 629
T V ：1,608

DVD Equip.
T V Equip.

2,950

1,984
DVD： 660
T V ：1,324

608560※ 304355
Revision ofForecast406
Revision ofForecast(2010/11/2)(2011/1/31)

FY2009Results：：△ 39△276（△ 5.6％）（△ 17.3％）

Information Equipment： ＋ 14 （＋ 2.6％）

Others： ＋102 （＋33.6％）

Total： △199 （△ 6.3％）

Changes from Revision of Forecast
AV Equipment
DVD Equip.
T V Equip.

546： △315 （△13.7％）： △253 （ 88.7％）：：＋ 31△284（ 104.9％）（ 82.3％）

Information Equipment： △ 48 （ 92.1％）

Others： ＋ 51 （114.4％）

Total： △250 （ 92.2％）※The sales amount of antenna set for North America
in FY2009 was 3,600 mil. yen.

13Ⅱ

Supplemental Data ①
Summary of Operating Results (Oct.(Oct.-Dec.)
1.
2.
3.

Breakdown of Sales by Equipment
Sales of Audio and Visual Equipment
Geographic Breakdown of Sales

14

1．Breakdown of Sales by Equipment
AV Equipment
Information Equipment
Others(100 million yen)(100 million yen)

810

760

Comparison to Previous 3Q
AV Equipment
DVD Equip.
T V Equip.

581
DVD：125
T V ：456

159※ 70

Previous 3Q(Oct.-Dec.)： △72 （△12.4％）： ＋104： △176（＋ 83.2％）（△ 38.6％）

509

Information Equipment： △34 （△21.4％）

DVD：229
T V ：280

Others： ＋56 （＋80.0％）

Total： △50 （△ 6.2％）

125126
Current 3Q(Oct.-Dec.)※The sales amount of antenna set for North America
in the 3rd quarter in FY2009 was 400 mil. yen.

15

2．Sales of Audio and Visual Equipment
CRT TVLCD TV

DVD Player Equipment
DVD Recorder Equipment
Blu-ray disc
Others(100 million yen)456

(100 million yen)

1280

229
125
48
63734455
280

142

45
26

16

Previous 3Q(Oct.-Dec.)

Current 3Q(Oct.-Dec.)

Previous 3Q(Oct.-Dec.)

Current 3Q(Oct.-Dec.)

16

3. Geographic Breakdown of Sales
North AmericaEurope
Asia & OthersJapan(100 million yen)(100 million yen)

810760355553(47％)(68％)

52 (7％)
41 (5％)
89 (11％)54 (7％)

Comparison to Previous 3Q
North America：△198 （△35.8％）

Europe：△ 37 （△41.6％）

Asia & Others ：△ 13 （△24.1％）
Japan：＋198 （＋173.7％）

Total：△ 50 （△ 6.2％）

312(41％)114 (14％)Previous 3Q(Oct.-Dec.)

Current 3Q(Oct.-Dec.)

17

Ⅲ Supplemental Data ②
1. Quarterly Operating Summary of FY 2009, 2010
2. Quarterly Changes of Sales Amount by Equipment

18

1. Quarterly Operating Summary of FY 2009, 2010
(100million yen)

FY 2009

FY 2010

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Net Sales

776894810

669749791760

Operating Income

376314△32520△5(4.8%)(7.1%)(1.8%) (△0.6%)(3.4％)

4055△312(5.3%)(6.2%)(3.0%) (△0.5%)(1.7％)

31

41

18

114(4.1%)(4.6%)(2.3%)(1.8%)(0.6％)

MarginOrdinary Income
MarginNet Income After Tax
Margin24(2.6％) (△0.7％)

34△7(4.4％) (△0.9％)34△16(4.4％) (△2.2％)19

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

1,000

800

894
776

213

Television Equipment

810
125

249

450

456

130

362

791

760

123
229
388
280

348

346

200

0749

112

600

400

669

OthersInformation Equipment

159

122

171

189

125

109

156

72

75

70

87

86

91

126

1Q

2Q

3Q

4Q

1Q

2Q

3Q

(09/6)(09/9)(09/12)(10/3)(10/6)(10/9)(10/12)20Disclaimer•

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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