Presentation of Operating Resultsin 1st Quarter (Apr.-Jun.) of FY2011

August 1, 2011

FUNAI ELECTRIC CO., LTD.
Security code 6839

0Ⅰ．Outline of Operating Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Summary of 1st Quarter (Apr.-Jun.)
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of Television related Equipment
Geographic Breakdown of Sales
Factor of Changes of Operating Income
Financial Conditions
Changes of Inventories
Capital Expenditures, Depreciation Expense and R&D Expenditures
Revised Forecast of Consolidated Operating Results

1１．Summary of 1st Quarter (Apr.-Jun.)（100 million yen）

FY 2010

FY 2011

Y/Y△93Net Sales

749656

Operating Income

253(3.4%)(0.5%)

120△12( M a r g i n )(1.7%)(0.1%)△23 (※2)

Net Income after tax

4△23△27( M a r g i n )(0.6%)(△3.6%)

91.28

81.23

( M a r g i n )Ordinary Income

Average USD-JPY
Exchange Rate(△12.5%)△22△3 (※1)＋10 (※3)△15 (※4)（※1） forex loss△3（※3） decrease of interest receivables△1、decrease of forex loss＋11（※2） income taxes△14、income taxes for prior periods△9（※4） decrease of extraordinary loss＋1、increase of income taxes△7、increase of income taxes prior periods△9Month End
Exchange Rate
（USD/JPY）

10/3

10/6

11/3

11/6

04

48

15

80.73

93.

88.

83.

2

２．Breakdown of Sales by Equipment

749
656

（100 million yen）

Y/YAV
Equipment

AV Equipment492
DVD ：130
T V ：362

461
DVD ：184
T V ：277

Information
Equipment
Others

17187

86

108

Previous 1Q

Current 1Q： △ 31 （△ 6.2％）

DVD Equip. ： ＋ 54
T V Equip. ： △ 85（＋ 41.5％）（△ 23.5％）

Information Equipment ： △ 84 （△49.2％）
Others： ＋ 22 （＋24.6％）

Total： △ 93 （△12.5％）

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３．Sales of DVD related Equipment

DVD Players

184

DVD Recorders

・Both DVD player and recorder declined
Blu-ray disc30

130
DVD Players

DVD Recorders

・BRD recorder significantly gained and player dropped

30（100 million yen）

Y/Y

3436

DVD Players： △ 4 （△ 11.8%）

DVD Recorders： △ 6 （△ 16.7%）

Blu-ray disc

： ＋68 （＋133.3%）

Others

： △ 4 （△ 44.4%）

Total： ＋ 54 （＋ 41.5%）

119Blu-ray disc51

Others95

Previous 1Q

Current 1Q
4４．Sales of Television related Equipment

362
LCD TV

277

・Continued market slump and consequent ASP
decline significantly impacted.

（100 million yen）

362

Y/Y277
LCD TV

Previous 1Q： △ 85 （△ 23.5%）

Current 1Q
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５．Geographic Breakdown of Sales
North America

749

・LCD TV largely dropped and Information
Equipment also declined.

656
Japan
・BRD recorder, antennas and related devices moregained than decline of LCD TV
North America

410

298

(55%)

EuropeAsia & Others

72（100 million yen）

(45%)

3051(9%)Y/Y(5%)(8%)

North America： △112 （△27.3％）

Europe： △ 42 （△57.7％）

Asia & Others： △ 16 （△23.9％）

Japan： ＋ 77 （＋38.2％）

Total： △ 93 （△12.5％）

67 (9%)
277

Japan200(42%)(27%)

Previous 1Q

Current 1Q
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６．Factor of Changes of Operating Income＊ Add-value=Sales – (Cost of sales + selling expenses)

Sales
decrease△10Add-value
deteriorated *25Operating
Income△14Decrease of Operating
general expenses Income

2

Previous 1Q

3

Current 1Q7

７．Financial Conditions（100 million yen）

2,175

Accounts
Receivables

423

Inventories

547

Fixed Assetsand Others455

Trade Payables

519

700

707

363

359

438

453

438

441

289

402

338

Accounts Payables
and Others

Liabilities
AndNet Assets

1,960

750

Cash / Deposit

Assets

1,939

287
1,312

Net Assets

1,369

302

1,256

Comparison to 2010/6
Assets△215

・Cash / Deposit△ 43・Accounts Receivables△ 64・Inventories△ 94

・Fixed Assets and Others△ 14Liabilities△102・Trade Payables△ 117

・Accounts Payables
and Others＋ 15Net Assets△113（Shareholder’s Equity Ratio 63.6%）

1,939

1,960

2011/3

2011/62,175
2010/68８．Changes of Inventories

547
438
Finished products（100 million yen）

288
235

Work in process

453

259

274

203

179

2010/6

2011/3

2011/6

2.2 months

2.0 months

2.1 months

Comparison to 2010/6
Finished products： △ 14Work in process： △ 80<Inventories Turnover>
9９．Capital Expenditures, Depreciation Expenseand R&D Expenditures
1Q
CapitalExpenditures

Full Year

Depreciation
ExpenseR&DExpenditures

CapitalExpenditures

Depreciation
Expense

R&D
Expenditures（100 million yen）

（100 million yen）

140

140

△4＋2

△18120

120

100

10080

80

60

60

40

40

20

20

140
129

60

030

31
12

2010/6 2011/6

10124835274702010/6 2011/6

2010/3 2011/3
2010/3 2011/3
2010/3 2011/3（Projection）（Projection）（Projection）

2010/6 2011/6

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10．Revised Forecast of Consolidated Operating Results（100 million yen）

Original Forecast(2011/5/9)

Revision of Forecast(2011/8/1)

1H

2H

12 months

Net Sales

1,568

1,532

Operating
Income344680(Margin)(2.2%)(3.0%)

Ordinary
Income34(Margin)

1H

2H

Y/Y

12 months

1H

2H

12 months

1,532

3,100---

34

4680

---

(2.6%)(2.2%)(3.0%)(2.6%)

4680

34

4680

---

(2.2%)(3.0%)(2.6%)(2.2%)(3.0%)(2.6%)Net Income
after tax

124052240-△10（Margin)(0.8%)(2.6%)(1.7%)(0.1%)(2.6%)

3,100 1,568

42 △10(1.4%)

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Ⅱ．Supplemental Data
1. Quarterly Operating Summary of FY 2010 / 2011
2. Quarterly Changes of Sales Amount by Equipment

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１．Quarterly Operating Summary of FY 2010 / 2011（100 million yen）

FY 2010
1Q

2Q

FY 2011
3Q

4Q

1Q

S a l e s749

791760659

656Operating Income

2520△5△323(Margin)(3.4%)(2.6%)(△0.7%)(△5.0%)（0.5％）O r d i n a r y I n c om e1234

△7△270(Margin)(1.7%)(4.4%)(△0.9%)(△4.2%)（0.1％）Net Income after tax

434△16△33△23(Margin)(0.6%)(4.4%)(△2.2%)(△5.1%)（△3.6％）

N e t

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２．Quarterly Changes of Sales Amount by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others（100 million yen）

749

791

760

123
130

362

659

656

174

184

300

277

79

87

106

108

229
388
280

171

189

125

86

91

126

1Q

2Q

3Q

4Q

1Q

(10/6)(10/9)(10/12)(11/3)(11/6)
14Disclaimer

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.

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