From April 1, 2014
To December 31, 2014

February 2, 2015
Funai Electric Co., Ltd.

Third Quarter (April‐December) Consolidated Financial Summary
for the Period Ending March 2015
(Million yen)Previous Year Third Quarter

Current Year Third Quarter

From April 1, 2013
to December 31, 2013

From April 1, 2014
to December 31, 2014

AmountAmount%%%Net Sales

Rate ofincrease or
decrease%%

185,506

100.0

173,569

100.0

(6.4)

Operating Income (Loss)

437

0.2

1,392

0.8

218.5

Ordinary Income (Loss)

4,800

2.6

4,298

2.5

(10.5)Net Income (Loss) before Taxes
and Other Adjustments

2,120

1.1

4,477

2.6

111.2

Net Income (Loss) after Tax

1,737

0.9

3,940

2.3

126.8

Net Income (Loss) per Share

50.93

115.50Notes: Includes 21 consolidated subsidiaries, 1 non‐consolidated subsidiary of equity method, 1 affiliated company ofequity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 9‐Month Period ended December 31, 2014
February 2, 2015

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839

Tokyo Stock ExchangeFirst Section(URL http://www.funai.jp/ )Representative: President and CEO
Tomonori Hayashi
Tetsuhiro Maeda
Inquiries: Representative Director, Corporate Planning Dept.
Scheduled date of Quarterly Report; February 5, 2015
Scheduled date of Commencement of Annual Dividend Payment; －Quarterly Financial Results Supplementation: Yes
Quarterly Financial Results Seminar: Yes

TEL: (072) 870‐4395

1. Third Quarter Consolidated Results for the Period Ending March 2015 (April 1, 2014 – December 31, 2014)(1) Operating Results (Consolidated)(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen%
Million yen %Million yen%
Million yen%(10.5)
3,940
126.8
173,569
(6.4)
1,392
218.5
4,298
3rd Quarter FY2014
4,800
1,737
185,506
26.2
437
－
－
－
3rd Quarter FY2013(Reference) Comprehensive Income 3rd Quarter FY 2014 ended December 31, 2014 13,624 million yen (76.1%)
2,614 million yen (827.6%)
3rd Quarter FY 2013 ended December 31, 2013
Net Income
Per Share

Net Income Per Shareon a Fully Diluted BasisYen

3rd Quarter FY2014
3rd Quarter FY2013

Yen
－
－

115.5050.93(2) Consolidated Financial Position

3rd Quarter FY2014
Fiscal Year 2013
(Reference) Equity

Net Assets
Total Assets
Million yen
Million yen
186,974
130,588
181,341
117,684rd
3 Quarter FY 2014 ended December 31, 2014
Fiscal Year 2013 ended March 31, 2014

Equity Ratio
%
69.2
64.2
129,401 million yen
116,509 million yen

2. Dividends
Dividend per Sharest

1 Quarternd

2 Quarteryen

3rd Quarter

yen

yen

Fiscal Year 2013

－

0.00

－

Fiscal Year 2014

－

0.00

－

Fiscal Year 2014
(Projection)rdYear‐End

Annual
yen

yen

35.00

35.00

－

－

(Note) Revision of Annual Dividends Forecast in this 3 Quarter: No
The dividend for FY 2014 has been undecided. The company’s dividend policy of DOE is unchanged.
Because of the high impact stemmed from the recent fluctuations in exchange rates give to the consolidated
net assets, the dividend is to be disclosed at the time of disclosure has become possible to public.

3. Forecast of Consolidated Results for the Fiscal Year ending March 2015 (April 1, 2014 ‐ March 31, 2015)(% denotes year on year)
Operating
Ordinary
Net Income
Net Sales
Net Income
IncomeIncomePer Share
Million yen

Full Year%

203,000 (13.3)

Million yen %500－

Million yen %

1,400

－

Million yen %

900

－

Yen

26.38

(Note) Revision of Forecast of Consolidated Results for the six month period or the Full Year in this 3rd Quarter: No*Note(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting in this 1st quarter: Yes(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results
1. Changes arising from revision of accounting standards: Yes
2. Changes arising from other factors: No
3. Changes in accounting estimates: No
4. Restatement: No(4) Number of Shares Outstanding (Ordinary Shares)
1. Number of shares outstanding (including treasury stock) as of December 31, 2014; 36,130,796 shares
as of March 31, 2014; 36,130,796 shares
2. Number of shares of treasury stock as of December 31, 2014; 2,011,615 shares
as of March 31, 2014; 2,011,615 shares
3. The Average number of outstanding shares on December 31, 2014; 34,119,181 shareson September 30, 2013; 34,119,181 shares* The Recording of Implementation Conditions Regarding Quarterly Review ProceduresThis quarterly financial summary does not fall within the scope of the Quarterly Review Procedures referenced in the
Financial Instruments and Exchange Act. At the time of disclosure of the quarterly financial summary, the Group was in
the process of implementing the quarterly review procedures for its quarterly financial statements.

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 factorsthat may impact future business performance 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 communication equipment, the economic
conditions of both domestic and international markets, and fluctuations in currency exchange rates. Actual
performance may greatly differ from projections included in this document because of the impacts ofuncertainty in such areas 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.

1. Qualitative Information Regarding Quarterly Financial Results(1) Explanation of Business Performance
During the first nine months of the fiscal year ending March 31, 2015, the economy of the United States, a key
market for the Funai Group, continued to recover as a result of strong consumer spending, a robust housing market,
and a stable employment situation. Business conditions in European were stagnant, reflecting worsening of thesituation in the Ukraine, faltering of the Russian economy caused by a sharp decline in crude oil prices, andrekindling of the debt crisis in Greece due to political instability. China’s economy slowed for reasons including
deterioration in the housing market. The pace of economic recovery in Japan was sluggish because of factors
including a reaction to last‐minute demand ahead of the consumption tax increase and the impact of bad weather.
In these circumstances, the Funai Group posted net sales for the first nine months of the fiscal year of JPY
173,569 million, down 6.4% year on year. On the profit front, operating income was JPY 1,392 million, up 218.5%,
ordinary income was 4,298 million, down 10.5 %, and net income was JPY 3,940 million, up 126.8%.
The Funai Group saw an improvement trend in profitability as a result of factors including improved efficiency
attributable to rigorous inventory control and selective reduction of the range of audio accessories to high‐sellingitems, despite lower sales of LCD TVs, a key product, and DVD‐related products.
Segment conditions by location were as follows:i) Japan
Although revenues from BD‐related products increased, sales of printers, DVD‐related products, and LCD TVs
declined. As a result, net sales were JPY 34,153 million, down 17.2% year on year, and segment loss (operatingloss) was JPY 521 million, compared to segment income (operating income) of 1,540 million in the first ninemonths of the previous year.
ii) Americas
Despite an increase in screen sizes and a strong year‐end selling season, revenues from LCD TVs fell on lower
sales of TVs with integrated DVD players. Sales of DVD‐related and BD‐related products fell as a result of market
contraction, and sales of audio accessories declined slightly due to selective product range reduction. As aresult, net sales were JPY 133,090 million, down 3.7% year on year. However, segment income (operating
income) was JPY 2,136 million, compared to segment loss of JPY 723 million in the first nine months of theprevious year, thanks to the success of measures such as rigorous inventory control.
(Notes)
Effective from the first quarter of the fiscal year under review, the Company has changed the name of a reportable segmentfrom the previous North America to Americas. This is a change of name only and has no impact on segment information.

iii) Asia
Net sales were JPY 3,876 million, up 9.3% year on year, on higher revenues from ink cartridges and otherproducts. However, segment income (operating income) was JPY 43 million, down 92.1% compared to the same
period of the previous year.
iv) Europe
Although sales of ink cartridges and DVD‐related products increased, the slump in LCD sales continued. As aresult, net sales were JPY2,447 million, down 0.3% year on year, and segment loss (operating loss) was JPY 75
million, compared to segment loss of JPY 358 million in the first nine months of the previous year.

Sales by product segment were as follows:i) Audiovisual Equipment
In the audiovisual equipment sector, revenues from LCD TVs decreased from the first nine months of theprevious year, and sales of DVD‐related products also declined due to market contraction. As a result, net salesof audiovisual equipment were JPY 138,523 million, down4.9% year on year.
ii) Information Equipment
In the information equipment sector, although revenues from ink cartridges increased, lower revenues fromprinters resulted in net sales of JPY 11,304 million, down 23.7% year on year.
iii) Other Products
Net sales of other products were JPY 23,740 million, down 5.1% year on year, on lower revenues fromreceiver‐related electronic equipment, audio accessories, and other products.

(2) Qualitative Information Relating to Consolidated Financial Position
Consolidated total assets increased by JPY 5,633 million compared to the end of the previous fiscal year. Thechange is mainly attributable to increases of JPY 11,445 million in cash and deposits and JPY 5,483 million in notes andaccounts receivable‐trade and decreases of JPY 5,178 million in merchandise and finished goods and JPY 6,480 million
in raw materials and supplies.
Total liabilities decreased by JPY 7,271 million compared to the end of the previous fiscal year. The change ismainly attributable to a decrease of JPY 1,112 million in notes and accounts payable‐trade, despite increases of JPY
3,982 million in short‐term loans payable and JPY 12,533 million in accounts payable included in “Other” undercurrent liabilities.
Net assets increased by JPY 12,904 million compared to the end of the previous fiscal year. The change is mainly
attributable to increases of JPY 3,230 million in retained earnings and JPY 9,540 million in the foreign currencytranslation adjustment account.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
The Company has not revised the consolidated operating performance forecasts released on November 4, 2014.
Note: The operating results outlook is a forward‐looking statement about the future performance of the Company and is based on
management’s assumptions and beliefs in light of information currently available, and involves known and unknown risks anduncertainties. Various factors such as changes in economic conditions overseas, especially in the main U.S. market, and severe
price fluctuations may cause actual events and results to differ materially from those anticipated in these statements.

2. Summary Information(1) Unique accounting procedure for preparation of consolidated financial statements for fiscal quarter
Expenses relating to taxes are calculated by applying the estimated effective tax rates on the before‐tax net profit
for the fiscal quarter, through a practical estimation of the effective tax rates that will take effect after the applicationof the tax effect accounting for before‐tax net profits of the consolidated fiscal year, including this third fiscal quarter.
(2) Change in accounting policy(Application of accounting standard for retirement benefits)
Effective from the first quarter of the fiscal year under review, the Company has applied the provisions set forth in
the main clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits (ASBJ Guidance No. 26, May 17,2012) and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May
17, 2012). As a result, the methods for calculating retirement benefit obligations and service costs have been revised in
the following respects: the method for attributing projected benefits to periods has been changed from thestraight‐line basis to the benefit formula basis, and the method for determining the discount rate has been changed
from a discount rate based on the average period until payment of estimated amount of retirement benefits to use asingle weighted‐average discount rate that reflects the periods until the expected payment of retirement benefits andthe amount of projected benefits for each period.
Application of the Accounting Standard for Retirement Benefits and Guidance on Accounting Standard for
Retirement Benefits conforms to the transitional treatment set forth in Paragraph 37 of the Accounting Standard for
Retirement Benefits, and the effect of changing the method for calculating retirement benefit obligations and service
costs was recognized by adjusting retained earnings at the beginning of the current first quarter.
As a result, net defined benefit assets and net defined benefit liabilities at the beginning of the current third
quarter increased by JPY 934 million and JPY 200 million, respectively, retained earnings increased by JPY 483 million,
and minority interests decreased by JPY 11 million. The effect of this change on consolidated operating income andloss, ordinary income and loss, and income and loss before income taxes for the current third quarter is immaterial.
(3) Additional Information(About anti‐tax haven law)
The Funai Group received a rectification notice from the Osaka Regional Taxation Bureau on June 29, 2011. The
Bureau determined that our Hong Kong subsidiary does not meet the requirements for exclusion under the anti‐tax
haven system and the Hong Kong subsidiary’s income for the three fiscal years ended March 31, 2008 through 2010,
will be considered, and taxed as our income. We objected to these supplementary tax assessments, and filed apetition with the Osaka Regional Tax Tribunal on August 25, 2011, to overturn the supplementary tax assessment
order. Thereafter, we received written verdicts on this case on July 24, 2012 indicating that our assertions had been
dismissed. We will continue to assert the validity of its arguments in the future.
The additional tax of JPY 825 million (JPY 935 million including incidental taxes) includes corporate, enterprise andresidence taxes. We charged the tax assessments to income as “prior year’s taxes” in the fiscal year ended March 31,
2012.
The financial effect of applying the tax system beginning in the fiscal year ended March 31, 2011, the accounting
period after the fiscal year in which the tax examination concluded, has been charged to income.

3. Consolidated Financial Statements(1) Consolidated Quarterly Balance Sheets(Units : Million Yen)
Fiscal year 2013
(As of March 31, 2014)

3rd Quarter FY2014(As of December 31, 2014)ASSETS;
Current Assets
Cash and deposits

49,16760,613

Notes and accounts receivable ‐ trade

37,681

43,165Merchandise and finished goods

31,66526,487Work in process

1,182

1,355

Raw materials and supplies

16,427

9,946

Other

8,126

8,469

Allowance for doubtful accounts

(210)

(440)

144,041

149,599

Property, plant and equipment

21,90522,875Intangible assets

6,574

6,256

335

1,258

Other

8,780

7,260

Allowance for doubtful accounts

(296)

(275)

Total current assets
Noncurrent Assets

Investments and other assets
Net defined benefit asset

Total investments and other assets

8,819

8,243

37,30037,375

181,341

186,974

Notes and accounts payable ‐ trade32,942

20,408

Short‐term loans payable

4,526

5,639

414

366

Provision

1,312

1,207

Other

14,497

17,840Total current liabilities

53,692

45,462

Long‐term loans payable

6,121

6,777

Provision

1,088

1,085

775

873

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Income taxes payableNoncurrent Liabilities

Net defined benefit liability
Other

1,979

2,187

Total noncurrent liabilities

9,964

10,92363,65656,385TOTAL LIABILITIESFiscal year 2013
(As of March 31, 2014)

3rd Quarter FY2014(As of December 31, 2014)

NET ASSETS;
Shareholders' equity
Capital stock

31,30731,307

Capital surplus

33,27233,272Retained earnings

93,19696,426

Treasury shares(24,341)(24,341)

Total shareholders' equity

133,435

136,665

672

771

Foreign currency translation adjustment(17,495)(7,954)Remeasurements of defined benefit plans

(103)

(80)

(16,925)(7,263)

132

139

1,042

1,048

117,684

130,588

181,341

186,974

Accumulated other comprehensive income
Valuation difference on available‐for‐sale securities

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net asset
TOTAL LIABILITIES AND NET ASSETS

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statement ofComprehensive Income(Consolidated Quarterly Statements of Income)(Units : Million Yen)
3rd Quarter FY2013

3rd Quarter FY2014( from April 1, 2013
to December 31, 2013)( from April 1, 2014
to December 31, 2014)

Net sales

185,506

173,569

Cost of sales

156,884

143,307

Gross profit

28,62230,262

Selling, general and administrative expenses

28,184

28,869437

1,392Interest income

95

130

Dividends income

39

107

4,776

2,763

112

409

5,023

3,410

Interest expenses

146

133

Equity in losses of affiliates

89

139

Payment compensation cost

300

－

Other

124

231

Total non‐operating expenses

660

504

4,800

4,298

Gain on disposal of noncurrent assets

049

Gain on sales of shares of subsidiaries and associates－

134

Gain on negative goodwill

8

－

Other

0

12

Total extraordinary income

9

196

81

18

1,297

‐

1,166

‐

142

‐

Total extraordinary loss

2,689

18

Income before income taxes

2,120

4,477

356

522

1,763

3,955

25

14

1,737

3,940

Operating income
Non‐operating income

Foreign exchange gains
Other
Total non‐operating income
Non‐operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on disposal of noncurrent assets
Expenses incurred on business restructuring
Advisory fees
Other

Income taxes
Income before minority interests
Minority interests in income
Net income*1*2

(Consolidated Quarterly Statement of Comprehensive Income)

Income (loss) before minority interest adjustment(Units : Million Yen)

3rd Quarter FY2013

3rd Quarter FY2014( from April 1, 2013
to December 31, 2013)( from April 1, 2014
to December 31, 2014)

1,763

3,955

260

101

5,525

9,541

Other comprehensive Income
Valuation difference on avaiable‐for‐sale securities
Foreign currency translation adjustment
Retirement benefits adjustment
Post retirement liability adjustment for foreigncompanies
Share of other comprehensive income of associates
accounted for using equity method

‐

26

148

‐

39

0

5,974

9,668

7,737

13,624Comprehensive income attributable to owners of parent

7,709

13,603Comprehensive income attributable to minority interests

28

21

Total other comprehensive Income
Comprehensive income(Breakdown)(4) Consolidated Quarterly Statements of Income(Notes for Continuing Enterprises)
Not Applicable(Notes of remarkable changes in Shareholders Equity)
Not Applicable(Consolidated balance sheets)
Third Quarter Consolidated Fiscal Period – Year to Date (As of December 31, 2014)
Contingent liabilities(Arbitration)
Funai Electric Co., Ltd. (hereinafter, “Funai”) resolved to acquire from Koninklijke PHILIPS N.V. (hereinafter,“PHILIPS”) all shares in a company that will hold the operation of the PHILIPS’ Lifestyle Entertainment Business andconcluded a share purchase agreement on January 29, 2013. But PHILIPS filed against Funai a petition as of October 25,
2013 for arbitration to claim compensation for damages on the grounds of breach of the agreement by Funai and thepetition has been served on November 8, 2013 by the International Chamber of Commerce.
With regard to this matter, Funai recognizes there to have been no breach of contract on its behalf. Consequently,
on December 6, 2013, Funai filed with the International Chamber of Commerce a counterclaim for claiming
compensation for damages on the grounds of breach of the agreement and undue action by PHILIPS.
On May 20, 2014 Funai received notice from PHILIPS of the amount of the claim for compensatory damages.
Subsequently, on October 1, 2014 the Company filed a statement with the International Court of Arbitration including
indication of the amount of compensatory damages claimed against PHILIPS.
On December 24, 2014 Funai received notice from PHILIPS of a revised amount of compensatory damages claimed
by PHILIPS.
The results of these arbitral proceedings may affect the Funai Group’s operating performance, but given the
difficulty of making a rational estimate of this impact during this third quarter consolidated fiscal period, such impact
has not been reflected in the Funai Group’s operating performance or financial condition.
Following is the outline of arbitration filed against Funai and counterclaim filed by Funai.
1. Outline of arbitration filed against Funai(1) Institution and date of arbitrationi) Institution where petition for arbitration is filed: International Chamber of Commerceii) Date of petition for arbitration: October 25, 2013
(2) Petitioner of arbitrationi) Name : Koninklijke PHILIPS N.V.
ii) Location : Eindhoven, The Netherlandsiii) Title & name of representative : Chief Executive Officer Frans van Houten(3) Details of petition and claimed amount for damagesi) Details of petition : A claim for damages on the grounds of breach of the agreement by Funaiii) Claimed amount : €189.6 million (amount revised from the amount of €171.8 million filed by PHILIPS on May
20, 2014), statutory interest and arbitration costs
2. Outline of counterclaim filed by Funai(1) Institution with which counterclaim filed and date of filingi) Institution with which counterclaim filed : International Chamber of Commerceii) Date of counterclaim: December 6, 2013
(2) Other party to counterclaim filingi) Name : Koninklijke PHILIPS N.V.
ii) Location : Eindhoven, The Netherlandsiii) Title & name of representative : Chief Executive Officer Frans van Houten(3) Details of petition and claimed amount for damagesi) Details of petition : Claim for damages on the grounds of breach of the agreement and undue action by PHILIPSii) Claimed amount : an indication of the amount of compensatory damages claimed in such counterclaim,
consisting of €312.3M , the amount of tax payable,contractual interest and arbitration
costs.

An overview of the above‐mentioned share purchase agreement is as follows.
1. Name of other company and content of acquired businesses(1) Name of other company : Koninklijke PHILIPS N.V.
(2) Content of acquired businesses : Lifestyle Entertainment Business(Note) The Lifestyle Entertainment Business involves the development and design, sales and (partial) manufacture of the
PHILIPS‐brand Audio Video Multimedia products, Home Communication products and Accessories products.

2. Reasons for Acquiring the Shares
The Transaction to assume the operation will enable the Funai Group to expand the lineup of products that it
handles and expand its sales region to include Asia, South America and other emerging markets, as well as advanced
countries in Europe. Funai decided to acquire shares in the New Company, based on the belief that the acquisition
would foster sustained growth of the Funai Group's business.
3. Acquisition price and percentage of shares held after acquisition
Acquisition price : €150 million
Percentage of shares held after acquisition : 100%
(Consolidated quarterly statements of income)Third Quarter Consolidated Fiscal Period – Year to Date (April 1, 2013 to December 31, 2013)*1 Expenses incurred on business restructuring stem mainly from costs incurred due to the shrinking of the overseas
LED business, principally including an inventory valuation loss of JPY 238 million, an impairment loss on investment in
subsidiaries and associated companies of JPY 646 million and impairment losses of JPY 389 million.
*2 Advisory fees
Previous Third Quarter Consolidated Fiscal Period – Year to Date (April 1, 2013 to December 31, 2013)
Advisory fees were paid as specified compensation and fees to third‐party advisors to determine an acquisition pricefor the intended acquisition of all shares in a company to succeed the Lifestyle Entertainment Business of Koninklijke
Philips N.V. (hereafter “PHILIPS”). These fees have been charged to expenses as PHILIPS terminated the share purchaseagreement and filed a petition for arbitration with the International Chamber of Commerce and the Company filed acounterclaim.

(Information by Segment)[Segment Information]
I.

Third Quarter Consolidated Fiscal Period – Year to Date (April 1, 2013 to December 31, 2013)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment
Japan

Americas

Asia

Net Sales(1) Outside customers(2) Inter‐segment sales

41,238109,376

138,263
0

3,548
116,9272,456
0

185,506
226,304－(226,304)

185,506－

Total

150,615

138,263

120,475

2,456

411,811(226,304)

185,506

1,540

(723)

551

(358)

1,010

(573)

437

Segment Income (Loss)

Europe

Total(Units: Million Yen)
Adjustments Consolidated(Note 1)
(Note 2)Note:
1. JPY ‐573 million adjustment amount under segment income includes items such as the JPY 15 million relating to
the cancellation of inter‐segment transactions, JPY ‐612 million of overall Group expenses that are notapportioned to each reporting segment, and the JPY 24 million adjustment relating to inventory assets. Overall
Group expenses are comprised of general administrative expenses that do not belong to a specific reporting
segment.
2. Segment income has been adjusted to operating income noted on the third quarter consolidated income
statement.
II.

Third Quarter Consolidated Fiscal Period – Year to Date (April 1, 2014 to December 31, 2014)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment(Units: Million Yen)
Total

Adjustments Consolidated(Note 1)
(Note 2)

2,447‐

173,569
207,282－(207,282)

173,569－

110,6232,477

380,852(207,282)

173,569

43

(75)

1,583

(190)

1,392

Japan

Americas

Asia

Net Sales(1) Outside customers(2) Inter‐segment sales

34,153
99,832133,090703

3,876
106,746

Total

133,986

133,794

(521)

2,136

Segment Income (Loss)

EuropeNote:
1. JPY ‐190 million adjustment amount under segment income includes items such as the JPY ‐5 million relating to
the cancellation of inter‐segment transactions, JPY ‐556 million of overall Group expenses that are notapportioned to each reporting segment, and the JPY 371 million adjustment relating to inventory assets. Overall
Group expenses are comprised of general administrative expenses that do not belong to a specific reporting
segment.
2. Segment income has been adjusted to operating income noted on the third quarter consolidated income
statement.
2. Change a Reportable Segment(Application of Accounting Standard for Retirement Benefits)
Effective from the first quarter of the fiscal this year under review, the Company has applied the provisions set
forth in the main clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits (ASBJ Guidance No. 26,
May 17, 2012) and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.
25, May 17, 2012). As a result, the methods for calculating retirement benefit obligations and service costs have beenrevised in the following respects: the method for attributing projected benefits to periods has been changed from thestraight‐line basis to the benefit formula basis, and the method for determining the discount rate has been changed
from a discount rate based on the average period until payment of estimated amount of retirement benefits to use asingle weighted‐average discount rate that reflects the periods until the expected payment of retirement benefits andthe amount of projected benefits for each period. The effect of this change is immaterial.
(Change the Name of a Reportable Segment)
Effective from the first quarter of the fiscal this year under review, the Company has changed the name of areportable segment from the previous North America to Americas. This is a change of name only and has no impact on
segment information. Segment information for the current third quarter is presented using the revised segment name.

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / RELATIONS OFFICE
7‐7‐1 Nakagaito Daito‐city, Osaka 574‐0013, JapanTEL 81‐72‐870‐4395 ･ FAX 81‐72‐870‐4613

from 2014.4.1
to 2014.12.31
Page
1. Summary of 3Q (April to December) Financial Statements (Consolidated)(1) Operating Results, Financial Conditions ･････････････････････････････

1(2) Profitability and Per Share Data etc. ････････････････････････････････

1(3) Capital Expenditures, Depreciation, R&D Expenses ･･････････････････

1(4) Cash Flow ･･･････････････････････････････････････････････････････

2

2. Operating Activities (Consolidated)(1) Slaes by Equipment ･･･････････････････････････････････････････････

2(2) Sales by Area in Equipment ････････････････････････････････････････

3(3) Sales by Equipment in Areas ･･･････････････････････････････････････

3

3. Summary of 3Q (October to December)Financial Statements(Consolidated)(1) Operating Results ･･････････････････････････････････････････････････

4(2) Sales by Equipment ･････････････････････････････････････････････････

4

１．Summary of 3Q (April to December) Financial Statements (Consolidated)(1) Operating Results, Financial Conditions
FY 2013
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountNet Sales

1,855

Change Amount

3Q (Apr. ‐ Dec.)%

Change Amount

100.0

26.2

2,340

100.0

21.9

1735

（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)%

Change

2030

100.0

(13.3)

Change Amount

100.0

(6.4)

Operating Income (Loss)

4

0.2

－

(54)

(2.3)

－

13

0.8

218.5

5

0.2

－

Ordinary Income (Loss)

48

2.6

－

(22)

(1.0)

－

42

2.5

(10.5)

14

0.7

－

17

0.9

－

(67)

(2.9)

－

39

2.3

126.8

9

0.4

－

Total Assets

1,844

－

－

1,813

－

－

1,869

－

－

－

－

－

Net Assets

1,277

－

－

1,176

－

－

1,305

－

－

－

－

－

Net Income (Loss) after Tax（※） Yen‐Dollars / Exchange rate
FY 2013
3Q (Apr. ‐ Dec.)
Average Rate in each Period

Full‐Year
100.4999.80（Units : Yen / Dollars）
FY 2014
3Q (Apr. ‐ Dec.)
Full‐Year (Projections)107.75102.80(2) Profitability and Per Share Data etc.
FY 2013
（％）

15.4

13.9

FY 2014
Full‐Year (Projections)
17.4
17.5

Operating Income Ratio （％）

0.2

(2.3)

0.8

0.2

Ordinary Income Ratio （％）

2.6

(1.0)

2.5

0.7

3Q (Apr. ‐ Dec.)
Gross Profit Ratio

3Q (Apr. ‐ Dec.)

Full‐Year

68.7

64.2

69.2

－

Net Assets Per Share（yen）

3,711.08

3,414.77

3,792.64－

Net Income Per Share

（yen）

50.93

(197.70)

115.5026.38

Return on Assets

（％）

1.0

(3.6)

2.1

－

Return on Shareholders' Equity （％）

1.4

(5.7)

3.2

－

Shareholders' Equity Ratio （％）(3) Capital Expenditures, Depreciation, R&D Expenses
FY 2013
3Q (Apr. ‐ Dec.)
AmountChange99

Capital Expenditures

Full‐Year
Amount253.6

3Q (Apr. ‐ Dec.)

Change109

Amount105.7

Change28

Full‐Year%%

AmountChange Amount

3Q (Apr. ‐ Dec.)
Change AmountAmount(71.7)FY 2013
3Q (Apr. ‐ Dec.)（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)%

Change(66.1)

37

FY 2014
Full‐Year (Projections)

Change Amount%

ChangeDepreciation Expenses

39

2.1

34.5

52

2.2

30.0

35

2.0

(10.3)

48

2.4

(7.7)

R&D

64

3.5

(7.2)

84

3.6

(9.7)

57

3.3

(10.9)

79

3.9

(6.0)

－1－

(4) CashFlow

Cash flows provided by operating activities

(49)

(12)

（Units : 100 million yen）
FY 2014
Full‐Year (Projections)93－

Income Before Income Taxes

21

(56)

44

－

Depreciation Expenses

48

64

43

－

FY 2013
3Q (Apr. ‐ Dec.)

Full‐Year

3Q (Apr. ‐ Dec.)

(118)

(20)

6

－

(13)

(27)

(196)

－

Free cash flows

(62)

(39)

(103)

－

Cash flows provided by financing activities

(76)

(46)

(11)

－

34

20

29

－

(105)

(66)

(85)

－

OthersCash flows used in investing activities

Effect of exchange rate changes oncash and cash equivalents
Net increase in cash and cash
equivalents

2．Operating Activities (Consolidated)(1) Sales by Equipment
FY 2013
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAudio Visual Equipment
DVD
BD
LCD TV

Change Amount

3Q (Apr. ‐ Dec.)
Change Amount%（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

Change Amount%

Change

1,457

78.5

20.3

1,831

78.2

17.6

1,385

79.8

(4.9)

1,632

80.4

(10.9)

137

7.4

(4.2)

174

7.4

(5.4)

95

5.5

(30.7)

113

5.6(35.1)

119

6.4

11.2

168

7.2

19.1

109

6.3

(8.4)

140

6.9

(16.7)

1,164

62.7

24.6

1,436

61.4

19.8

1,142

65.8

(1.9)

1,332

65.6

(7.2)

37

2.0

37.0

53

2.2

60.6

39

2.2

5.4

47

2.3

(11.3)

Information Equipment

148

8.0

96.1

189

8.1

57.8

113

6.5

(23.7)

118

5.8(37.5)

Others

250

13.5

35.8

320

13.7

31.6

237

13.7

(5.1)

280

13.8

(12.6)

1,855

100.0

2,340

100.0

1,735

100.0

2,030

100.0

(13.3)

Others

Total

26.2

－2－

21.9

(6.4)

(2) Sales by Areas in Equipment
FY 2013
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAudio Visual Equipment

Change Amount

3Q (Apr. ‐ Dec.)
Change Amount%（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)

Change Amount%

Change

1,457

78.5

20.3

1,831

78.2

17.6

1,385

79.8

(4.9)

1,632

80.4

(10.9)

Americas

1,282

69.1

24.0

1,570

67.1

18.5

1,222

70.4

(4.7)

1,412

69.6

(10.1)

Europe25

1.3(34.2)

32

1.3(25.6)

23

1.3

(8.0)

35

1.7

9.4

Asia and Others

10

0.5

150.0

12

0.5

140.0

5

0.3

(50.0)

9

0.4

25.0

Japan

140

7.6

3.7

217

9.3

17.9

135

7.8

(3.6)

176

8.7

(18.9)

148

8.0

96.1

189

8.1

57.8

113

6.5

(23.7)

118

5.8(37.5)

99

5.3

135.7

126

5.3

96.9

82

4.7

(17.2)

87

4.3(31.0)(31.4)

24

1.2(46.7)(41.7)

7

0.3(56.3)

Information Equipment
Americas
Europe

35

1.9

337.5

45

2.0

136.8

24

1.4

Asia and Others

12

0.7

(52.0)

16

0.7(48.4)

7

0.4

Japan

2

0.1

－

2

0.1

(60.0)

0

0.0

－

0

0.0

－

Others

250

13.5

35.8

320

13.7

31.6

237

13.7

(5.1)

280

13.8

(12.6)

Total

1,855

100.0

26.2

2,340

100.0

21.9

1,735

100.0

(6.4)

2,030

100.0

(13.3)(Note)
Effective from FY 2014, 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 FY 2013 have been restated accordingly.

(3) Sales by Equipment in Areas
FY 2013
3Q (Apr. ‐ Dec.)

Full‐Year%%

AmountAmericas

Change Amount

Change Amount%

Change Amount

26.7

1,428

82.3

67.1

18.5

1,222

5.3

96.9

82

154

6.6

116.9

124

77

3.3

24.2

47

(34.2)

32

1.3(25.6)

1.9

337.5

45

2.0

0.0

－

0

0.0

33.5

1,850

79.0

69.1

24.0

1,570

5.3

135.7

126

124

6.7

143.1

60

3.2

29.1

Audio Visual Equipment

25

1.3

Information Equipment

35

Others

0

1,505

81.1

Audio Visual Equipment

1,282

Information Equipment

99

OthersEuropeAsia and Others

3Q (Apr. ‐ Dec.)（Units : 100 million yen, %）FY 2014
Full‐Year (Projections)%

Change

(5.1)

1,634

80.5

70.4

(4.7)

1,412

69.6

(10.1)

4.7(17.2)

87

4.3(31.0)

7.2

0.0

135

6.7

(12.3)

2.7(21.2)

59

2.9(23.4)

23

1.3

(8.0)

35

1.7

9.4

136.8

24

1.4

(31.4)

24

1.2(46.7)

－

0

0.0

－

0

0.0

－

(11.7)

26

1.4(16.3)

32

1.4(17.9)

17

1.0(33.3)

19

0.9(40.4)

Audio Visual Equipment

10

0.5

150.0

12

0.5

140.0

5

0.3

(50.0)

9

0.4

25.0

Information Equipment

12

0.7

(50.0)

16

0.7(48.4)

7

0.4(41.7)

7

0.3(56.3)

Others

4

0.2

100.0

4

0.2

33.3

5

0.3

25.0

3

0.2

(25.0)

264

14.3

(0.6)

381

16.3

6.1

243

14.0

(7.9)

318

15.7

(16.5)

Audio Visual Equipment

140

7.6

3.7

217

9.3

17.9

135

7.8

(3.6)

176

8.7

(18.9)

Information Equipment

2

0.1

－

2

0.1

(60.0)

0

0.0

－

0

0.0

－

122

6.6

(6.9)

162

6.9

(4.7)

108

6.2

(11.5)

142

7.0(12.3)

1,855

100.0

26.2

2,340

100.0

21.9

1,735

100.0

ᇞ 6.4

2,030

100.0

(13.3)Japan

Others
Total(Note)
Effective from FY 2014, 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 FY 2013 have been restated accordingly.

－3－3．Summary of 3Q (October to December) Financial Statements (Consolidated)(1) Operating Results（Units : 100 million yen, %）FY 2013

FY 2014

3Q (Oct. ‐ Dec.)

3Q (Oct. ‐ Dec.)%

AmountChange%Amount12.1

577

ChangeNet Sales

650

100.0

100.0

(11.2)

Operating Income (Loss)

(1)

(0.2)

－

0

0.1

－

Ordinary Income (Loss)

26

4.1

(18.8)

15

2.6(42.6)Net Income (Loss) after Tax

11

1.7

83.3

13

2.3

17.0

（※） Yen‐Dollars / Exchange rate
（Units : Yen / Dollars）
FY 2013

FY 2014

3Q (Oct. ‐ Dec.)

3Q (Oct. ‐ Dec.)

Average Rate in each Period

102.10116.04(2) Sales by Equipment（Units : 100 million yen, %）FY 2013

FY 2014

3Q (Oct. ‐ Dec.)

Audio Visual Equipment

3Q (Oct. ‐ Dec.)%

AmountChange%AmountChange

518

79.7

11.2

475

82.3

(8.3)

DVD

56

8.6

(6.7)

42

7.3

(25.0)

BD

44

6.8

(12.0)

40

6.9

(9.1)

LCD TV

397

61.1

16.8

378

65.5

(4.8)

Others

21

3.2

31.3

15

2.6

(28.6)

Information Equipment

41

6.3

20.6

17

3.0

(58.5)

Others

91

14.0

13.8

85

14.7

(6.6)

Total

650

100.0

12.1

577

100.0

(11.2)－4－

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS OFFICE
7-7-1 Nakagaito Daito-city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-870-4613