FUNAI ELECTRIC CO., LTD.
Presentation of Operating Results in 1st Quarter(Ari.-Jun.) of FY2008

August 7, 2008

1Ⅰ

Outline of 1st Quarter (Apr.-Jun.) of FY2008
Operating Results (Consolidated)
１ Summary of Operating Results(Apr.-Jun.)
２ Breakdown of Sales by Equipment
３ Sales of Audio and Visual Equipment
４ Sales of DVD related Equipment
５ Sales of Television related Equipment
６ Geographic Breakdown of Sales
７ Financial Conditions
８ Changes of Inventories
９ Capital Expenditures, Depreciation Expense and R&D Expenditures
10 Forecast of Operating Results in FY2008 Ending March 20092１Summary of Operating Results (April-June)（100 million yen）

Previous 1Q

Net Sales

Changes from
Previous 1Q

Current 1Q△ 23.2%

Operating Income

773115949Margin(1.5%)(1.7%)

4444(5.8%)(7.5%)

1330＋127.8%(1.7%)(5.1%)△181 (※2)

13△137− %(1.7%)(△23.2%)

Ordinary Income
MarginNet Income After Tax

Before income tax for prior periods

MarginNet Income After Tax
MarginAverage USD-JPY
Exchange Rate

JPY121.58△ 15.7%+35 (※1)

△ 0.7%

JPY105.43（※1） Interest receivables +9、Forex gain +25、Others +1（※2） Income taxes for prior periods △168、Others △133２

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

773

（100 million yen）

594
489
417

212
72

107
70

Previous1Q

Current
1Q

Comparison to Previous 1Q
AV Equipment： △72 （△14.8％）

Information Equipment： △105 （△49.3％）

Others：Total： △179 （△23.2％）△ 2 （△ 3.1％）

4

３

Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment（100 million yen）

489

（100 million yen）

417

Comparison to Previous 1Q

166
188323229

Previous1Q

DVD related Equipment： ＋22 （＋13.3％）

Television related Equipment： △94 （△29.1％）

Total： △72 （△14.8％）

Current
1Q
5４

Sales of DVD related Equipment
Video
DVD Recorder related Equipment
DVD Player related Equipment

BD Player
Digital STB（100 million yen）

DVD Players

DVD Recorders

・Due to stopping the growth of US market, players largely
dropped, recorders were also down.

BD Player

188

・Started in good condition from April.

166

61343

Digital STB・Stronger demanded than projected（100 million yen）

Comparison to Previous 1Q

505721103：△7 （△53.8％）

DVD Recorder related Equipment ：△7 （△14.0％）

Video

DVD Player related Equipment

BD Player： ＋21 （−）

Digital STB： ＋61 （−）

Total： ＋22 （＋13.3％）

61

Previous
1Q

Current
1Q： △46 （△44.7％）

6

５

Sales of Television related Equipment
CRT TVLCD TVCRT TV・Largely dropped due to the replacement byrapid penetration of LCD TV in the market.

LCD TV・Slight decline in the midst of fierce
competition from top tier to lower tier,

Projector & Others（100 million yen）

323

Projector & Others

・Withdraw of projector.
（100 million yen）

99229

Comparison to Previous 1Q

26203

199

CRT TV： △73 （△73.7％）

LCD TV：： △ 17 （△81.0％）

Projector & Others

421

Previous1Q： △94 （△29.1％）

Total

Current
1Q△4 （△ 2.0％）

7６

Geographic Breakdown of Sales（100 million yen）

North America

773
594

Europe・ Demand for consumer electronics products adversely affected bycooling down housing market and gas price hike・ Consumer's demand, however, for LCDTV keeping on a firm
track with fierce price competition, Funai's performancewell done in N.A. and hard in Europe
・ BD Player and Digital STB successfully marketed in aggressive
stance in N.A.
・ Information equipment were down both in N.A. and Europe due
to strategic change of an OEM client（100 million yen）

513
(66.3%)

414(69.6%)

126
38
96

71
1792

Previous
1Q

Current
1Q

Comparison to Previous 1Q
North America： △99 （△19.4％）

Europe： △55 （△43.4％）

Asia & Others： △21 （△55.3％）

JapanTotal：△4 （△ 3.9％）： △179 （△23.2％）
8

７Financial Conditions（100 million yen）

2,853

Assets2, 244886

AccountsReceivables

397

Inventories

458

268
350

1,112946923

Trade Payables

535258403

408

Accounts Payables
and Others

426680502

Assets289

・Cash / Deposit△ 384564

・Accounts Receivables△ 108・Inventories＋ 106

・Fixed Assets and Others

△ 189

395

Liabilities
1,583

1,475

Net Assets

1,892

2,244

2,278

・Trade Payables△ 127

・Accounts Payables
and Others△ 31Net Assets
・Net Assets

2,853
2007/6（100 million yen）

2,278

Cash / Deposit

Fixed Assets
and Others

Liabilities
andNet Assets

Comparison to 2007/6

2008/3

2008/6△ 417（Shareholders’ Equity Ratio 64.5％）
9８

Changes of Inventories
Finished products
Work in process

564（100 million yen）

458

（100 million yen）

350

396

326
211

132

139

168

2007/6

2008/3

2008/6

1.8months

2.0months

2.8months

Comparison to 2007/6
Finished products＋70Work in process＋36〈Inventories Turnover〉
10Capital Expenditures, Depreciation Expenseand R&D Expenditures

９1Q
CapitalExpenditures

Depreciation
Expense

R&D
Expenditures

Comparison to Previous 1Q（100 million yen）
160

Full Year△20△7

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures（100 million yen）

△2160140140120120

1001008080

1476060

4040732020260154

34
166

2007/6 2008/64857

329

2007/6 2008/6490

2007/6 2008/6

2007/3 2008/3(Projection）

2007/3 2008/3

2007/3 2008/3（Projection）（Projection）

1110

Forecast of Operating Results in FY2008
Ending March 2009（100 million yen）

Forecast 1H

Net Sales

Forecast FY2008

1,440

3,400

3360

(2.3%)(1.8%)

4380(3.0%)(2.4%)

3358（Margin）(2.3%)(1.7%)Net Income After Tax ※△139△114（Margin）(△9.7%)(△3.4%)

Operating Income（Margin）

Ordinary Income（Margin）

Net Income After Tax［Before income tax for prior periods］※Revised down on June 16, 2008： Supplementary tax assessment based on rectification notice to Funai Electric Co., Ltd. for anti-tax haven system in HK for
16.8 bil. yen from the March 2005 to March 2007 period was posted as a cost of income taxes for prior periods on the 1Q
consolidated income statement of FY2008.

12

Ⅱ

Supplemental Data
1

Changes of Sales Amount by Equipment (after unification)

13

１

Changes of Sales Amount by Equipment (after unification)（100 million yen）

1,321

1400
1200

330

1000

1,140309

834
800

198600400
2000663

600
538

413

773

790

166

153

148

111
252

695

323

339

513
120

594
188

372
327
163

233

210

60
1Q

64
2Q

60
3Q

90
4Q

(06/6)(06/9)(06/12)(07/3)

DVD related Equipment

212

240

72
1Q

58
2Q

113
62
3Q

(07/6)(07/9)(07/12)

Television reｌated Equipment

Information Equipment

220

229

85
88
4Q

107
70
1Q

(08/3)(08/6)

Others14

Disclaimer•

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.

15