Presentation of Financial Results
Third Quarter(Apr.-Dec.) of FY2018

February 12, 2018
FUNAI ELECTRIC CO.,LTD.
TSE68391

Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Summary of 3rd Quarter (Oct.-Dec.)
Summary of Nine-Month (Apr.-Dec.)
Summary of Nine-Month (Apr.-Dec.)
Breakdown of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Breakdown of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures21. Summary of 3rd Quarter (Oct.-Dec.)〈100 million yen〉

FY20173Q

FY20183Q

Net Sales

366343Operating Income-1811(-5.0%)(3.4%)-22+0(-6.1%)(0.2%)-24+0(-6.6%)(0.2%)

112.73112.57(Margin)

Ordinary Income(Margin)
Net Income Attributable toowners of parent(Margin)Average USD-JPY Exchange Rate

Month End
USD-JPY
Exchange Rate

Sep.2017

Dec.2017

Sep.2018

Dec.2018

112.73113.00113.57111.00Difference(Y / Y)-23（-6.4%）＋29＋22＋243

2. Summary of Nine-Month (Apr.-Dec.)〈100 million yen〉

FY2017Nine-Month

1,087810-58-5(-5.4%)(-0.6%)-58-1(-5.4%)(-0.1%)-155

7(-14.3%)(0.9%)

111.77111.32Net Sales
Operating Income(Margin)

Ordinary Income(Margin)
Net Income Attributable toowners of parent(Margin)Average USD-JPY Exchange Rate

Month End
USD-JPY
Exchange Rate

FY2018Nine-MonthMar.2017

Dec.2017

Mar.2018

Dec.2018

112.19113.00106.24111.00Difference(Y / Y)-277（-25.5%）＋53＋57＋1624

3. Summary of Nine-Month (Apr.-Dec.)〈100 million yen〉

FY2017Nine-Month

FY2018Nine-MonthDifference(Y / Y)-58-5＋53338451-58-1＋57

110000-1-100-157-1＋156-2-8-6-155

7＋162

Operating income
Non-operating income
Non-operating expenses（※1）

Ordinary Income
Extraordinary income
Extraordinary losses（※2）

Income before Income Taxes

Income taxes
Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)

FY2017 9M
32(note:2 Extraordinary income and losses)

FY2017 9M

FY2018 9M
3010-1-1

Interest

Interest Foreign exchange

OthersincomePayments

gain and lossFY2018 9M

00-2-100Extraordinary

Extraordinary

incomelosses5

4. Breakdown of Sales by Equipment
AV Equipment: Decreased due to the effect of distribution inventory adjustment in North America.

Info Equipment: Almost flat due to decreased inkjet printers and increased commercial inkcartridges.
〈100 million yen〉

1,087

AV Equip

810
AV Equipment

1,035
DVD：152
T V ：883

Y/Y（Change）-290( -28.1%)

DVD Equip-51( -33.8%)

TV Equip-239( -27.1%)

Information Equip+0( ＋0.8%)

Others＋13(＋51.2%)

Total-277( -25.5%)745
DVD：101
T V ：644

Sales Composition
OthersInformation

3% DVD2% 14%

Others
5% DVD
Information
12%
3%

Information
Equipment
Others

26
26

26
39

FY2017 9M

FY2018 9M

FY20179M
TV

81%

FY20189M
T V 80%6

5. Sales of DVD related Equipment
 Decreased,Decreased,demand
demandchanged
changedby
byrapid
rapidspreadspreadofofVideoVideostreaming
streamingservice
servicesuch
suchasasthe
theinternet
internetandandsalessalesofofnew
newproducts
productsinto
intothetheJapaneseJapanesemarket
marketwere
wereoneonemonthmonthbehindbehindlast
lastyear.
year.

152

BD Recorders76〈100 million yen〉

Y/Y（Change）

10156

BD Players

50

BD Recorders-20( -26.9%)

BD Players-23( -46.6%)

DVD-9( -45.6%)

Others+1(+25.6%)

Total-51( -33.8%)

27DVD

20Others

6117

FY2017 9M

FY2018 9M
76. Sales of LCD related Equipment Decreased new sales of TV due to the continuance of the distribution inventory
adjustment phase of the North American market.
〈100 million yen〉

883
Y/Y（Change）

644
LCD TVLCD TV-239(-27.1%)883644FY2017 9M

FY2018 9M
87. Sales of Information Equipment
 Almost flat , Sales of inkjet printers of unprofitable products were narrowed down,
but sales increased due to sales of label printers, nail art printers and increased salesof commercial ink cartridges.
〈100 million yen〉

26
Inkjet printers

26

81Label printers

1

Nail Art PrinterInk-cartridges

Y/Y（Change）

520
17

FY2017 9M

Inkjet printers-8( -94.8%)

Label printers+4(＋556.1%)

Nail Art Printer＋1(Ink-cartridges+3( ＋11.5%)

合計＋0(-)＋0.8%)FY2018 9M
98. Geographic Breakdown of Sales Americas: Overall North American markets were in excess inventory. Therefore salesof LCD TVs declined due to sluggish growth in our new sales.
 Japan: Decreased, Sales of new products were one month behind last year.
Y/Y（Change）〈100 million yen〉

1,087

810
Americas

Americas-254( -31.9%)

Europe-1( -24.3%)

Asia & Others＋5(+83.3%)

Japan-27( -9.8%)

Total-277( -25.5%)800546EuropeAsia &Others
Japan47276

FY2017 9M

312249FY2018 9M

Sales Composition
Japan

Asia &Others
1%

25%

Japan

31%
FY2018FY2017
Americas74%

Asia &Others
2%Americas
67%

109. Operating Income Analysis (Y/Y)

〈100 million yen〉

Y / Y (Change)
FY2017 9M

FY2018 9M-5Decrease of

OperatingGeneralLossOperatingLossExpenses

+35
- 58
Increased of
Add-value

Sales
Decrease+32

- 14

11

10. Balance Sheet Conditions
Y/Y（Change）〈100 million yen〉

941
Cash / Deposit

Assets・Cash / Deposit

323

334

・Accounts Receivables

+3102
238

・Inventories+2・Fixed Assets andOthers+7

Inventories

319

99
236

Fixed Assets
and Others

165
150
186

144
118
177

151
157
149

507

519

Net Assets

605

941

Dec. 2017+11825123

Accounts Payables
and Others

+23

802

Accounts
Receivables

Trade Payables

Liabilities
AndNet Assets

334

Assets802Mar. 2018

825

Liabilities+11

・Trade Payables+39

・Accounts Payables
and Others- 28

Net Assets+12（Equity Ratio

62.9%）

Dec. 201812

11. Inventories Trends
Y / Y (Change)

Finished products：+9Work in process： -7〈100 million yen〉

<Inventories Turnover period in months>

4.1
2.2

2.6

442

268

262

215

2.6

3.3

193

75
Dec.2016

253

154
199

108
Mar.2017

Jun.2017

3.1

2.1

319
236

227

3.1

452

185

Finished products

Work in process

3.4

Sep.2017

134
Dec.2017

221

256
112132

118

104

103Mar.2018

Jun.2018

144

Sep.2018

238
141

97
Dec.2018

1312. Capital Expenditures, Depreciation Expense and R&D Expenditures

Full Year

Third Quarter
CapitalInvestment

Depreciation

R&D

Y/Y
-1

Y/Y
-9

Y/Y
-5

CapitalInvestment〈100 million yen〉

Depreciation

R&D〈100 million yen〉

70

50
4560

4047

4235
3050

6240

60

2530

2015
10201413

5151014600
FY2017 FY2018
9M
9M

FY2017 FY2018
9M
9M

21FY2017 FY2018
9M
9M

177FY2017 FY2018 FY2017 FY2018 FY2017 FY2018（Forecast）（Forecast）（Forecast）

14

Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography15

1. Quarterly Financial Summary of FY 2017 - 2018〈100 million yen〉

FY2017

Net Sales
Operating
Income( Margin )Ordinary
Income( Margin )Net Income
Attributableto owners of parent( Margin )Average USD-JPY
Exchange Rate

FY2018

1Q

2Q

3Q

4Q

1Q

2Q

3Q

320

401

366

214

216

251

343

-23-17-18-50-12-4

11(-7.3%)(-4.3%)(-5.0%)(-23.4%)(-5.7%)(-1.6%)(3.4%)-21-14-22-60-97+0(-6.7%)(-3.7%)(-6.1%)(-28.3%)(-4.2%)(2.9%)(0.2%)-15-115-24-92-06+0(-4.7%)(-28.9%)(-6.6%)(-43.1%)(-0.1%)(2.7%)(0.2%)

111.41111.16112.73107.46109.53111.88112.5716

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others〈100 million yen〉

401
51

320

366

343

51

36

50

251
328
299

256

214

216

33

35

30
289

158

154

201

7712107
97
16

10
17911

7
11

1Q

2Q

3Q

4Q

1Q

2Q

3QFY2017

FY201817

3. Quarterly Sales Trends by GeographyAmericas

EuropeAsia & OthersJapan〈100 million yen〉

401366343

320304219251277

214216243
163

143
111499

2292

85

1Q

2Q

3Q
FY2017

140
112

1763

1
966

85

98

4Q

1Q

2Q

3Q

1

FY201818

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.

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