From April 1, 2011
To September 30, 2011

November 7, 2011
Funai Electric Co., Ltd.

Second Quarter (April-September) Consolidated Financial Summary
for the Period Ending March 2012
(Million yen)Previous Year Second Quarter

Current Year Second Quarter

From April 1, 2010
to September 30, 2010

From April 1, 2011
to September 30, 2011

AmountAmount%Rate ofincrease or
decrease

%

%

%

%

154,084

100.0

140,641

100.0

△ 8.7

Operating Income

4,586

3.0

2,120

1.5

△53.8

Ordinary Income

4,776

3.1

519

0.4

△89.1

Net Incom before Taxes andOther Adjustments

4,658

3.0

426

0.3

△90.9

Net Income/Loss after Tax *

3,885

2.5

△2,060△1.5−

Net Income/Loss after Tax **

3,885

2.5

△2,997△2.1−

Net Sales

Net Income/Loss per Share

113.97△87.86

Notes: Includes 13 consolidated subsidiaries, 1 non-consolidated subsidiary accounted for by the equity method.
*For the purpose of comparison the Net Income / Loss after Tax before the deduction of Income taxes for 936 million
yen for prior periods is recorded.
**Supplementary tax assessment based on rectification notice to Funai Electric Co., Ltd. for anti-tax haven system
in HK for 936 million yen for the period of March 2008 to March 2010 was posted as a cost of income taxes for priorperiods in First Quarter consolidated income statement of FY2011.

Member, Financial Accounting Standards Foundation

Financial Report for the 6-Month Period ended September 30, 2011
November 7, 2011

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Section(URL http://www.funai.jp/ )Representative: President and CEO
Tomonori Hayashi
Inquiries: Associate Officer, Accounting HQ
Hisao Fuke
TEL: (072) 870-4395
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; November 10, 2011
Scheduled date of Commencement of Annual Dividend Payment; −Quarterly Financial Results Supplementation: Yes
Quarterly Financial Results Seminar: Yes
1. Second Quarter Consolidated Results for the Period Ending March 2012 (April 1, 2011 – September 30, 2011)(1) Operating Results (Consolidated)(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen%

ndMillion yen%

Million yen

Net Income
Per Share
Yen

Yen

−
113.32113.97(2) Consolidated Financial Position
Total Assets

Net Assets

Million yen(Reference)

Shareholders’ Equity Ratio

Million yen

181,338
121,270
193,910131,228
nd
2 Quarter FY 2011 ended September 30, 2011
Fiscal Year 2010 ended March 31, 2011

Shareholders’ Equity%

Net Income Per Shareon a Fully Diluted Basis△ 87.86

2nd Quarter FY2011
Fiscal Year 2010

Million yen

2,120
519
△2,997
−
△8.7
△53.8
△89.1
3,885
4,586
4,776 △50.2
△46.8
△7.8
△54.4
2nd Quarter FY 2011 ended September 30, 2011
△9,041 million yen (−%)
△4,838 million yen (−%)
2nd Quarter FY 2010 ended September 30, 2010

140,641
154,084(Reference) Comprehensive Income

2 Quarter FY2011
2nd Quarter FY2010

2nd Quarter FY2011
2nd Quarter FY2010

%

%

66.3
67.1
120,187 million yen
130,088 million yen

2. Dividends
Dividend per Sharestnd

1 Quarter

3rd Quarter2 Quarter

yen

yen

Fiscal Year 2010

−

0.00

Fiscal Year 2011
Fiscal Year 2011
(Projection)

−

0.00

Year-Endyen

Annual
yen

yen

−

40.00

40.00

−

40.00

40.00

nd

(Note) Revision of Annual Dividends Forecast in this 2 Quarter: No

3 Forecast of Consolidated Results for the Fiscal Year ending March 2012 (April 1, 2011 - March 31, 2012)(% denotes year on year)

Net Sales
Million yen

Full Year

Operating Income%

265,000 △10.4

Million yen

3,200

%

314.4

(Note) Revision of Forecast of Consolidated Results in this 2nd Quarter: No

Ordinary Income
Million yen

1,500

%

16.2

Net Income
Million yen%△2,800−Net Income
Per Share
Yen△82.08

4 Other Information(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 2nd quarter: Yes(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results①Changes arising from revision of accounting standards: No②Changes arising from other factors: No③Changes in accounting estimates: No④Restatement: No(4) Number of Shares Outstanding (Ordinary Shares)①Number of shares outstanding (including treasury stock) as of September 30, 2011; 36,126,596 shares
as of March 31, 2011; 36,123,596 shares②Number of shares of treasury stock as of September 30, 2011; 2,011,607 shares
as of March 31, 2011; 2,011,607 shares③The Average number of outstanding shares on September 30, 2011; 34,113,794 shareson September 30, 2010; 34,093,790 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, theGroup was in the process of implementing the quarterly review procedures for its quarterly financial statements.

Disclaimer;
Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on
October 28, 2011 for information regarding earnings forecasts.
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.

1. Qualitative Information Regarding Quarterly Financial Results(1) Qualitative Information Relating to Consolidated Business Performance
During the second half ended September 30, 2011, personal consumption in the economy of the United States, ourmainstay market has been sluggish, adversely affected by a continued high unemployment and lackluster housing
market. Furthermore, global economic uncertainty continues to mount, led by the sovereign debt crisis in Europe, andconcerns abound regarding the potential impact of this situation.
In the consumer electronics appliances industry, demand for LCD televisions, one of the Funai Group’s leading
products, continued to expand in emerging markets. Japan also saw year-on-year demand increases ahead of the July
2011 shift to digital terrestrial broadcasting. In Europe and the United States, however, demand continued to level off.
In addition to a certain degree of market saturation, the popularity of tablet computers is sapping demand for small
and medium-sized LCD televisions as customers tend toward the purchase of tablets rather than additional
televisions.
As a result of the above factors, the Group posted net sales of JPY 140,641 million, a 8.7% decrease compared withthe same period last year.
On the profit front, operating income was JPY 2,120 million, down 53.8% year on year; ordinary income was JPY
519 million, down 89.1% year on year; and a quarterly net loss of JPY 2,997 million (the quarterly net income for thesame period last year was JPY 3,885 million).
Segment conditions by location were as follows:i) Japan
In addition to that for Blu-ray Disc recorders, revenues from sales of antennas and related devices increased as aresult of the transition to digital terrestrial broadcasting. Nonetheless, due to the decrease in LCD TVs sales andinformation equipment sales due to reduced orders for printers, net sales were JPY 70,418 million, a 7.6%
decrease compared with the same period last year. Our operating profit (segment profit) was JPY 5,119 million,
down 3.7% year on year.
ii) North America
In addition to slack markets for our mainstay LCD televisions, revenues were substantially affected by falling
prices. Owing to this factor and the growing prevalence of Internet-based content distribution through video on
demand (VOD), which caused demand for DVD and Blu-ray Disc players to decline, net sales declined 13.6%
year on year, to JPY 64,012 million. Our operating loss (segment loss) was JPY 1,121 million (the operating loss
for this segment for the same period last year was JPY 1,253 million).
iii)
Asia
Net sales were JPY 3,812 million, an increase of 826.0% year on year. Our operating profit (segment profit) was
JPY 504 million, down 79.7% year on year.
iv)Europe
Sales of DVD-related equipment increased, but revenues decreased sharply due to the effects of the weak market
for LCD TVs, with net sales down 29.7% year on year, to JPY 2,397 million, and an operating loss (segmentloss) of JPY 903 million (operating loss for the same period last year was JPY 504 million).
Sales by Product Segment were as follows:i) Audio-Visual Equipment
In audiovisual equipment, sluggish U.S. and European markets for LCD televisions combined with pricereductions caused sales of these products to fall. However, sales of DVD-related products and Blu-ray Disc
recorders contributed to an increase in sales. As a result, net sales of this equipment were JPY 101,155 million,
an increase of 0.9% year on year.
ii) Information Equipment
In the information equipment sector, decreases in orders for printers resulted in net sales of thisequipment were JPY 18,187 million, a decrease of 49.5% year on year.
iii) Others Products
Sales of other products that are not included in the above categories increased as strong demand
for antennas and related devices as a result of the transition to digital terrestrial broadcasting
took hold. As a result, net sales of this equipment were JPY 21,297 million, an increase of 19.9% year onyear.

(2) Qualitative Information Relating to Consolidated Financial Position
Our financial position at the end of first quarter is described below.
Total assets decreased by JPY 12,572 million as compared to the end of the previous consolidated
fiscal year. This was mainly due to a decrease of JPY 5,478 million and JPY 7,718 million for cash
and deposits, raw materials and inventories, respectively.
Total liabilities decreased by JPY 2,614 million as compared to the end of the previous consolidated

fiscal year. This was mainly due to an increase of JPY 6,773 million in notes and accounts payables,
and a decrease of JPY 8,263 million and JPY 628 million for short-term loans payable and income
taxes payable.
Net assets fell by JPY 9,957 million as compared to the end of the previous consolidated fiscal year.
This was mainly due to a decrease of JPY 3,722 million and JPY 6,155 million in the retained
earnings and foreign currency translation adjustment account.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on October 28,
2011 for information regarding earnings forecasts.
Note: Our performance forecasts include figures based on decisions according to the information available at thetime and include items that are subject to risks and uncertainties. Actual performance may vary from these
forecasts due to rapid changes in economic conditions in the United States, our primary market, and otherregions overseas, as well as rapid fluctuations in product prices.

2. Summary Information(1) Important changes relating to subsidiaries and affiliates during the fiscal term (changes involving specificsubsidiaries that resulted in changes to the scope of consolidated accounting)
There are no relevant changes.
(2) 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 application of
the tax effect accounting for before-tax net profits of the consolidated fiscal year, including this first fiscal quarter.
(3) Changes arising from revision of accounting standards, Changes in accounting estimates, Restatement
There are no relevant changes.
(4) Additional information(Adoption of accounting standards related to accounting changes or correction of errors)
As of the accounting changes or correction of errors made since the beginning of the first quarter of the consolidated
fiscal year under review, the Group has adopted the Accounting Standard for Accounting Changes and Error
Corrections (Statement No. 24 of the Accounting Standard Board of Japan dated December 4, 2009) and thecorresponding Implementation Guidance (Implementation Guidance No. 24 dated December 4, 2009).
(5) Other
Corrective action implemented based on the application of the Anti-Tax Haven Law
1. On June 28, 2005 and June 16, 2008 we received a notice from the Osaka Regional Taxation Bureau regarding theimplementation of corrective action. This notice indicated a decision regarding our subsidiary in Hong Kong,suggesting that it did not satisfy the conditions for exclusion from application of the Anti-Tax Haven Law.
The notification furthermore indicated that the Osaka Regional Taxation Bureau decided to incorporate the income
generated by our subsidiary in Hong Kong into the income of our company for the duration of three years, from April
1, 2001, to March 31, 2004, from April 1, 2004, to March 31, 2007,or taxation purposes.
Because the Company objected to this corrective action, we applied for assessments by the Administrative Review
Office of the Osaka Regional Taxation Bureau on July 25, 2006 and again on August 6, 2008. Thereafter, we received
written verdicts on this case on July 3, 2008, and again on July 23, 2009, indicating that our assertions had been
dismissed. We filed an appeal to have the action cancelled with the Osaka District Court on November 16, 2006 andagain on November 14, 2008, and a hearing for consolidation of those actions was filed on November 26, 2008. The
court dismissed the claims of our Company on June 24, 2011. Thereafter, as the Company is unable to accept the
Osaka District Court’s judgment, we filed a notice of appeal at the Osaka Superior Court on July 7, 2011.
The additional tax amounts to JPY 16,651 million (JPY 19,184 million including incidental taxes) and JPY 15,038
million (JPY16,838 million including incidental taxes), including corporate, residential, and business taxes. We
processed these amounts in the fiscal term ending March 2007 as “retroactive corporate taxes,” since the accounting
procedures relating to additional tax amounts have been clarified through the amendment of the “Handling of Audits
Relating to Accounting Procedures and Disclosures for Taxes” (Report No. 63 of the Auditing and Guaranteeing
Work Committee of the Japanese Institute of Certified Public Accountants) on March 8, 2007.
2. On June 29, 2011 we received a notice from the Osaka Regional Taxation Bureau indicating their decision toincorporate the income generated by our subsidiary in Hong Kong into the income of our company for the duration of
three years, from April 1, 2007, to March 31, 2010, for taxation purposes.
Because the Company objected to this corrective action, we applied for assessments by the Administrative Review
Office of the Osaka Regional Taxation Bureau on August 25, 2011.
A provisional estimate for the additional tax, including corporate, residential, and business taxes,
amounts to JPY 826 million (JPY 936 million including incidental taxes). This amount has beenprocessed as expenses under the category of “income taxes for prior periods” in this first fiscal
quarter of the consolidated fiscal term.

3. Consolidated Financial Statements(1).Consolidated Quartery Balance Sheets(Mil. Yen)
Fiscal year 2010
(As of March 31, 2011)

2nd Quarter FY2011(As of September 30, 2011)ASSETS;
Current Assets
Cash and deposits

70,07664,597

Notes and accounts receivable-trade

36,36736,522Merchandise and finished goods

23,56527,251Work in process

1,795

1,710

Raw materials and supplies

18,477

10,759

Other

8,678

6,974

Allowance for doubtful accounts

△ 139

△ 153

Total current assets

158,820

147,663

Tangible fixed assets

16,29015,418Intangible assets

3,720

3,227

Other

15,432

15,391

Allowance for doubtful accounts

△ 352

△ 363

Total investments and other assets

15,07915,02835,08933,675

193,910

181,338

Notes and accounts payable-trade28,93835,711

Short-term loans payable

10,096

1,833

Income taxes payable

2,071

1,442

Provision

1,727

1,463

Other

16,09015,532

Total current liabilities

58,92655,98433−

Provision

2,392

2,963

Other

1,329

1,118

Total noncurrent liabilities

3,755

4,082

62,68160,067

Noncurrent assets

Investment and other assets

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Long-term loans payables

TOTAL LIABILITIES(Mil. Yen)
Fiscal year 2010
(As of March 31, 2011)

2nd Quarter FY2011(As of September 30, 2011)

NET ASSETS;
Shareholders' equity
Capital stock

31,30031,303

Capital surplus

33,26533,268Retained earnings

116,738

113,016

Treasury stock△ 24,341△ 24,341

156,962

153,246

612

582

Foreign currency translation adjestment△ 27,486△ 33,641

Total accumulated other comprehensive income△ 26,874△ 33,059

87

97

Minority interests

1,052

985

Total net asset

131,228

121,270

193,910

181,338

Total shareholders' equity

Accumulated other comprehensive income
Valuation difference on avaiable-for-sale securities

Subscription right to shares

TOTAL LIABILITIES AND NET ASSETS

(2). Consolidated Quartely Statements of Income and Consolidated Quartely Statement of Comprehensive
Income(Mil. Yen)
2nd Quarter FY2011
2nd Quarter FY2010( from April 1, 2010
to September 30, 2010 )
154,084( from April 1, 2011
to September 30, 2011 )
140,641

Cost of sales

128,995

119,091

Gross profit

25,08821,549Selling, general and administrative expenses

20,501

19,429Operating income

4,586

2,120

Interest income

260

95

Dividends income

1630

Rent income

48

52

Other

66

57

Total non-operating income

391

235

Interest expenses

35

59

Equity in losses of affiliates

1233

Foreign exchange losses

122

1,685

Other

30

57

Total non-operating expenses

201

1,835

4,776

519

Gain on sales of noncurrent assets

1

1

Other

25

−

Total extraordinary income

27

1

Loss on disposal of noncurrent assets

10

13

Loss on valuation of investment securities

065

Liquidation loss on affiliated company

88

−

Other

45

15

Total extraordinary loss

144

95

Income before income taxes

4,658

426

Income taxes

627

2,346

Income taxes for prior periods−

936

Total income taxes

627

3,282

4,031

△ 2,856

145

140

3,885

△ 2,997

Net sales

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Income / loss before minority interests
Minority interests in income
Net income / loss(Consolidated Quartely Statement of Comprehensive Income)(Mil. Yen)

2nd Quarter FY2010

2nd Quarter FY2011( from April 1, 2010
to September 30, 2010 )4,031( from April 1, 2011
to September 30, 2011 )△ 2,856

△ 57

△ 29

△ 8,929△ 6,152

117△2

Total other comprehensive Income△ 8,869△ 6,185

Comprehensive income△ 4,838△ 9,041

Comprehensive income attributable to owners of△ 4,962△ 9,182

Comprehensive income attributable to minority in

124

140

Income / loss before minority interest adjustment
Other comprehensive Income
Valuation difference on avaiable-for-sale securitie
Foreign currency translation adjestment
Share of other comprehensive income ofassociates accounted for using equity method(Breakdown)

(3).Consolidated quartely statements of cash flows(Mil. Yen)
2nd Quarter FY2010

2nd Quarter FY2011( from April 1, 2010
to September 30, 2010 )( from April 1, 2011
to September 30, 2011 )Net cash provided by (used in) operating activities
Income before income taxes and minority interests

4,658

426

Depreciation and amortization

3,032

3,191

Increase(decrease) in allowance for doubtful accounts

△ 27

33

Increase(decrease)in provision for retirement benefits

△ 13

△ 262

Interest and dividends income

△ 276

△ 125

Interest expenses

35

59

Equity in (earnings) losses of affiliates

12

33

△1

△0

0

65

Decrease (increase) in notes and accounts receivable-trade△ 5,349△ 3,727

Decrease (increase) in inventories△ 33,409

1,119

23,766

11,268Other, net

565

588

Subtotal△ 7,005

12,669

201

118

△ 35

△ 62

△ 1,500△ 2,016

Income taxes refund

41

1,233

Income taxes for prior periods paid

−

△ 936

△ 8,299

11,005△ 24,544△ 45,392

51,05546,224△ 4,543△ 1,990

27

36

Purchase of intangible assets

△ 39

△ 265

Purchase of investment securities

△ 54

△ 205

Proceeds from sales of investment securities

036

Payment of partial purchase of shares of consolidated subsidiaries

−

△ 196

Other, net

1577

21,916△ 1,675△ 1,397△ 7,809

△ 266

△ 33

13

4

△ 1,363△ 1,364

△ 110

△ 127

Net cash provided by (used in) financing activities△ 3,124△ 9,330

Effect of exchange rate change on cash and cash equivalents△ 1,581△ 1,213

Net increase (decrease) in cash and cash equivalents

8,911△ 1,213

Cash and cash equivalents at beginning of period

34,06333,745Decrease in cash and cash equivalents due to exclusion from consolidation

△ 59

△ 669

Cash and cash equivalents at end of period

42,914

31,863

Loss (gain) on sales of property, plant and equipment
Loss (gain) on valuation of investment securities

Increase (decrease) in notes and accounts payable-trade

Interest and dividends income received
Interest expenses paid
Income taxes paid

Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Repayments from time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (△decrease) in short-term loans payable
Repayment of long-term loans payable
Proceeds from issue of stock option
Cash dividends paid
Other, net

(4) Notes for Continuing Enterprises
Not Applicable(5) Information by Segment[Segment Information]
Ⅰ. Second Quarter Consolidated Fiscal Period – Year to Date (April 1, 2010 to September 30, 2010)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment(Units: Million Yen)Japan

N. America

Asia

EuropeTotal

Elimination Consolidated(1) Outside customers

76,20374,060411

3,409

154,084−(2) Inter-segment sales

86,394

1

119,9363

206,335(206,335)

−

Total

162,597

74,062

120,348

3,412

360,420(206,335)

154,084

Net Sales

Segment

Income154,084

and

5,315△1,253
2,489
△504
6,047
(1,460)Loss(△)
Note:
1. The negative JPY1,460 million adjustment amount under segment income includes items such as the
JPY20 million relating to the cancellation of inter-segment transactions, JPY506 million of overall
Group expenses that are not apportioned to each reporting segment, and the JPY975 million
negative adjustment relating to inventory assets. Overall Group expenses are comprised of generaladministrative expenses that do not belong to a specific reporting segment.
2. Segment income has been adjusted to operating income noted on the first quarter consolidated
income statement.

4,586

Ⅱ. Second Quarter Consolidated Fiscal Period – Year to Date (April 1, 2011 to September 30, 2011)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment(Units: Million Yen)Japan

N. America

Asia

EuropeTotal

Elimination Consolidated(1) Outside customers

70,41864,012

3,812

2,397

140,641−(2) Inter-segment sales

60,710090,732

1

151,444(151,444)

−

Total

131,12864,012

94,5452,398

292,085(151,444)

140,641

Net Sales

Segment

Income140,641

and

5,119△1,121
504
△903
3,598
(1,478)Loss(△)
Note:
1. The negative JPY1,478 million adjustment amount under segment income includes items such as the
JPY13 million relating to the cancellation of inter-segment transactions, JPY471 million of overall
Group expenses that are not apportioned to each reporting segment, and the JPY1,020 million
negative adjustment relating to inventory assets. Overall Group expenses are comprised of generaladministrative expenses that do not belong to a specific reporting segment.
2. Segment income has been adjusted to operating income noted on the first quarter consolidated
income statement.

(6) Notes of remarkable changes in Shareholders Equity:
Not Applicable(7) Important Subsequent Event
Not Applicable

2,120

from 2011.4.1
to2011.9.30
頁
1. Summary of 2Q (April to September) 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 2Q (July to September)Financial Statements(Consolidated)(1) Operating Results ･･････････････････････････････････････････････････ 4(2) Sales by Equipment ････････････････････････････････････････････････ 4

１．Summary of 2Q (April to September) Financial Statements (Consolidated)(1) Operating Results, Financial Conditions（Units : 100 million yen, %）FY 2011Full-Year (Projection)

FY 20102Q
AmountFull-Year%%

Change Amount

2Q
Change Amount%

Change Amount%

Change1,540

100.0 △ 7.8

2,959

100.0 △ 6.0

1,406

100.0 △ 8.7

2,650

Operating Income45

3.0 △ 54.4

7

0.3 △ 93.1

21

1.5 △ 53.8

32

1.2

314.4

0.4 △ 89.05

0.4 △ 89.1

15

0.6

16.2

Net Sales

100.0 △ 10.4

Ordinary Income

47

3.1 △ 50.2

12

Net Income / Loss after Tax(Before income tax for prior periods)

38

2.5 △ 46.8

△ 11

△ 0.4

−

△ 20

△ 1.5

−

△ 19

△ 0.7

−

Net Income / Loss after Tax

38

2.5 △ 46.8

△ 11

△ 0.4

−

△ 29

△ 2.1

−

△ 28

△ 1.1

−

Total Assets

2,134

−

−

1,939

−

−

1,813

−

−

−

−

−

Net Assets

1,366

−

−

1,312

−

−

1,212

−

−

−

−

−

（※） Yen-Dollars / Exchange rate
（Units : Yen / Dollars）
FY 2011Full-Year (Projection)
78.57
79.15

FY 20102Q

2Q

Full-Year
85.21

88.15

Average Rate in each Period(2) Profitability and Per Share Data etc.
FY 2010
（％）

16.3

13.6

FY 2011Full-Year (Projection)
15.3
15.4

Operating Income Ratio （％）

3.0

0.3

1.5

1.2

Ordinary Income Ratio （％）

3.1

0.4

0.4

0.6

2Q
Gross Profit Ratio

2Q

Full-Year

Shareholders' Equity Ratio （％）

63.6

67.1

66.3

−

Net Assets Per Share （yen）

3,978.83

3,813.57

3,523.01−

Net Income Per Share （yen）

113.97△ 34.31△ 87.86△ 82.08

Return on Assets

（％）

1.8

△

0.6

△

1.5

−

Return on Shareholders' Equity

（％）

2.9

△

0.9

△

2.3

−

4,628

−

3,126

Number of Total Employees

2,861(3) Capital Expenditures, Depreciation, R&D Expenses（Units : 100 million yen, %）FY 2011Full-Year (Projection)

FY 2010Full-Year

2Q
ChangeAmount45

Capital Expenditures

Amount55.2

2Q

ChangeAmount39.5

60

Change△ 48.923

FY 20102Q
AmountFull-Year%

Change Amount%

Change△ 20.048

FY 2011Full-Year (Projection)

2Q
Change AmountAmount%Change Amount%

ChangeDepreciation Expenses

22

1.4

10.0

48

1.6

11.6

24

1.7

9.1

53

2.0

R&D

63

4.1

△ 4.5

129

4.4 △ 3.754

3.8 △ 14.3

118

4.5 △ 8.5

−1−

10.4

(4) CashFlow（Units : 100 million yen）
FY 2011Full-Year (Projection)
110−

FY 20102Q

Full-Year

2Q

Cash flows provided by operating activities

△ 82

△ 51

Income Before Income Taxes

46

14

4

−

Depreciation Expenses

30

63

31

−

△ 158

△ 128

75

−

OthersCash flows used in investing activities

219

40

△ 16

−

Free cash flows

137

△ 11

94

−

△ 31

24

△ 93

−

△ 15

△ 16

△ 12

−

△

△ 18

−

Cash flows provided by financing activities

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

89

equivalents

2

2．Operating Activities (Consolidated)(1) Sales by Equipment（Units : 100 million yen, %）FY 2011Full-Year (Projection)

FY 2010Full-Year

2Q
Amount%%Change Amount

2Q
Change Amount%

Change Amount%

Change1,003

65.1 △ 21.8

1,986

67.1 △ 15.0

1,011

0.9

1,994

DVD

134

8.7 △ 43.7

269

9.1 △ 30.3

124

8.8 △ 7.5229

8.6 △ 14.9

BD

104

6.7 △ 4.6

353

11.9

86.8

220

15.6

111.5

459

17.3

LCD TV

750

48.7 △ 5.2

1,330

44.9 △ 16.6

656

46.7 △ 12.5

1,274

48.1 △ 4.2

Others15

1.0 △ 89.6

34

1.2 △ 79.5

11

0.8 △ 26.7

32

1.2 △ 5.9

Audio Visual Equipment

71.9

75.2

0.4

30.0

Information Equipment

360

23.4

35.9

564

19.1

3.3

182

12.9 △ 49.5

325

12.3 △ 42.4

Others

177

11.5

44.0

409

13.8

52.9

213

15.2

19.9

331

12.5 △ 19.1

Total

1,540

100.0 △ 7.8

2,959

100.0 △ 6.0

1,406

100.0 △ 8.7

2,650

100.0 △ 10.4

−2−

(2) Sales by Areas in Equipment（Units : 100 million yen, %）FY 2011Full-Year (Projection)

FY 2010Full-Year

2Q
Amount%%Change Amount

2Q
Change Amount

1,003

65.1 △ 21.8

1,986

67.1 △ 15.0

1,011

North America

714

46.3 △ 38.0

1,289

43.6 △ 34.6

Europe49

3.2 △ 12.5

83

Asia and Others

21

1.4

600.0

38

Japan

219

14.2

204.2

576

360

23.4

35.9

564

140

9.1

52.2

214

Audio Visual Equipment

Information Equipment
North America%
71.9

Change Amount%

Change

0.9

1,994

75.2

641

45.6 △ 10.2

1,271

47.9 △ 1.4

2.8 △ 33.6

31

2.2 △ 36.7

68

2.6 △ 18.1

1.3

111.1

15

1.1 △ 28.6

58

2.2

52.6

19.4

159.5

324

23.0

47.9

597

22.5

3.6

19.1

3.3

182

12.9 △ 49.5

325

12.3 △ 42.4

7.2

15.7

60

4.2 △ 57.1

118

4.5 △ 44.9

0.4

Europe

97

6.3

5.4

154

5.2 △ 13.0

38

2.7 △ 60.8

76

2.9 △ 50.6

Asia and Others

115

7.5

51.3

179

6.1

79

5.6 △ 31.3

125

4.7 △ 30.2

6.5

Japan

8

0.5

60.0

17

0.6

6.3

5

Others

177

11.5

44.0

409

13.8

52.9

213

Total

1,540

100.0 △ 7.8

2,959

100.0 △ 6.0

1,406

0.4 △ 37.5

6

0.2 △ 64.7

19.9

331

12.5 △ 19.1

100.0 △ 8.7

2,650

100.0 △ 10.4

15.2

(3) Sales by Equipment in Areas（Units : 100 million yen, %）FY 2011Full-Year (Projection)

FY 2010Full-Year

2Q
AmountNorth America%%

Change Amount

2Q
Change Amount%

Change Amount%

Change885

57.4 △ 29.1

1,558

52.6 △ 28.0

713

50.7 △ 19.5

1,403

52.9 △ 9.9

1,289

Audio Visual Equipment714

46.3 △ 38.0

43.6 △ 34.6

641

45.6 △ 10.2

1,271

47.9 △ 1.4

Information Equipment

140

9.1

52.2

214

7.2

15.7

60

4.2 △ 57.1

118

4.5 △ 44.9

Others

31

2.0

416.7

55

1.8

511.1

12

0.9 △ 61.3

14

0.5 △ 74.5

Europe146

9.5 △ 2.3

238

8.1 △ 21.869

4.9 △ 52.6

144

5.5 △ 39.5

Audio Visual Equipment49

3.2 △ 12.583

2.8 △ 33.6

31

2.2 △ 36.7

68

2.6 △ 18.1

Information Equipment

97

6.3

5.4

154

5.2 △ 13.0

38

2.7 △ 60.8

76

2.9 △ 50.6

Others

0

0.0

−

1

0.1 △ 66.7

0

0.0

−

0

0.0

138

9.0

70.4

221

7.5

12.8

99

7.1 △ 28.3

188

7.1 △ 14.9

Audio Visual Equipment

21

1.4

600.0

38

1.3

111.1

15

1.1 △ 28.6

58

2.2

Information Equipment

115

7.5

51.3

179

6.1

6.5

79

5.6 △ 31.3

125

4.7 △ 30.2

Asia and Others

OthersJapan
Audio Visual Equipment
Information Equipment
OthersTotal

0.1 △ 60.0

0.2

−

52.6

2

0.1

0.0

4

5

0.4

150.0

5

371

24.1

94.4

942

31.8

94.7

525

37.3

41.4

915

34.5 △ 2.9

219

14.2

204.2

576

19.4

159.5

324

23.0

47.9

597

22.5

8

0.5

60.0

17

0.6

6.3

5

144

9.4

26.3

349

11.8

41.9

196

100.0 △ 7.8

2,959

100.0 △ 6.0

1,406

1,540

−3−

0.4 △ 37.5

25.0

3.6

6

0.2 △ 64.7

36.1

312

11.8 △ 10.6

100.0 △ 8.7

2,650

100.0 △ 10.4

13.9

3．Summary of 2Q (July to September) Financial Statements (Consolidated)(1) Operating Results（Units : 100 million yen, %）FY 2010

FY 20112Q (Jul. - Sep.)

2Q (Jul. - Sep.)%

AmountChange%AmountChangeNet Sales

791

100.0

△ 11.5

750

100.0

△ 5.2

Operating Income

20

2.6

△ 67.517

2.4△ 13.1

Ordinary Income

34

4.4

△ 36.64

0.6△ 87.3Net Income / Loss after Tax

34

4.4

△ 16.6

△ 6

△ 0.9

−

（※） Yen-Dollars / Exchange rate
（Units : Yen / Dollars）
FY 2010

FY 20112Q (Jul. - Sep.)

2Q (Jul. - Sep.)
85.02

Average Rate in each Period

77.08(2) Sales by Equipment（Units : 100 million yen, %）FY 2010

FY 20112Q (Jul. - Sep.)%

Amount2Q (Jul. - Sep.)

Change%AmountChange511

64.6△ 24.4

550

73.3

7.6

DVD

64

8.1

△ 44.8

64

8.5

−

BD

53

6.7

△ 25.4

101

13.5

90.6

LCD TV388

49.0△ 13.4

379

50.5

△ 2.3

Others6

0.8△ 85.4

6

0.8−

Information Equipment

189

23.9

21.2

95

12.7

△ 49.7

Others

91

11.5

46.8

105

14.0

15.4

Total

791

100.0

△ 11.5

750

100.0

△ 5.2

Audio Visual Equipment−4−

（Company）

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