From April 1, 2010
To June 30, 2010

August 2, 2010
Funai Electric Co., Ltd.

First Quarter (April-June) Consolidated Financial Summary
for the Period Ending March 2011
Previous Year First Quarter

Current Year First Quarter

From April 1, 2009
To June 30, 2009

From April 1, 2010
To June 30, 2010

AmountAmountPercent

Million yen%

Percent% increaseor decrease
from thesame periodof theprevious
consolidated
fiscal year％

Million yen％

Net Sales

77,668100.0

74,958

100.0

△3.5

Operating Income

3,706

4.8

2,518

3.4

△32.0

Ordinary Income

4,081

5.3

1,284

1.7

△68.5

4,106

5.3

1,196

1.6

△70.9

3,171

4.1

433

0.6

△86.3

Net Income before Taxes andOther Adjustments

Net Income /Loss after Tax

Net Income/Loss per Share

93.01

12.71

Notes:
Includes 13 consolidated subsidiaries and 1 non-consolidated subsidiary accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 3-Month Period ended June 30, 2010
August 2, 2010

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Representative: President and CEO
Tomonori Hayashi
Inquiries: General Manager,Business Finance HQ
Hisao Fuke
TEL: (072) 870-4395
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; August 10, 2010
Scheduled date of Commencement of Annual Dividend Payment –Quarterly Financial Results Supplementation : Yes
Quarterly Financial Results Seminar : Yes
1. First Quarter Consolidated Results for the Period Ending March 2011 (April 1, 2010 – June 30, 2010)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen
st

1 Quarter FY2010
1st Quarter FY2009

%

△3.5
30.6

74,95877,668%Million yen

2,518 △32.0
3,706 275.0%

Million yen

1,284 △68.5
4,081 △8.2%

433 △86.3
3,171−

Net Income
Per Shareon a Fully
Diluted BasisNet Income
Per Share
1st Quarter FY2010
1st Quarter FY2009

Million yen

Yen

Yen

12.71
93.01

12.62
92.42

(2) Consolidated Financial Position
Shareholders’Equity Ratio

Net Assets

Total Assets
Million yen

Million yenst217,597
136,964
204,057
142,779(Reference) Shareholders’ Equity
1 st Quarter FY2010 ended June 30, 2010 136,089 million yen
Fiscal Year 2009 ended March 31, 2010 141,991 million yen

1 Quarter FY2010
Fiscal Year End 2009

Net Assets
Per Share
%

Yen

62.5
69.6

3,991.75
4,164.86

2. Dividends
Corresponding Period

Fiscal Year 2009
Fiscal Year 2010
Fiscal Year 2010
(Projection)

Annual Dividend per Share
2nd Quarter
3rd Quarter
Year end

1st Quarteryen−

Annual

0.00

yen
−

40.00

40.00

0.00

−

40.00

40.00

yen

yen

yen

−

(Note) Revision of Annual Dividends Forecast in this 1st Quarter : No

3. Forecast of Consolidated Results for the Full Year (April 1, 2010 - March 31, 2011)(% denotes year on year)

Net Sales
Six months ending Sep.30.2010

Operating Income Ordinary Income

Million yen%

170,000
350,000

1.7
11.1

Million yen%

7,200 △28.5
13,000
16.6

Million yen%

7,000 △27.0
12,90010.4

Net Income
Million yen

Net Income
Per Share%Yen

5,600 △23.4
10,000 △3.2

164.26293.32

Full Year 2010
Note:
Revision of Forecast of Consolidated Results for the Six month period or the Full Year in this 1st Quarter : No.

4. Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No
Note: Refers to movements of specified subsidiaries that have resulted from any changes to the range ofconsolidated entities during the current quarterly accounting period.
(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting in this 1st quarter : Yes
Note: Please refer to “Qualitative Information and Financial Statements”.
(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
Note: Refers to changes to general rules and procedures as well as denotation methods for accounting
treatment in relation to the development of current quarter consolidated financial statements as referenced in
the section entitled, “Changes to Important Items that Form the Basis of the Development of the Quarterly
Consolidated Financial Statements”.
(4) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of June 30, 2010; 36,104,196shares
as of March 31, 2010; 36,104,196shares(2)Number of shares of treasury stock as of June 30, 2010; 2,011,583shares
as of March 31, 2010; 2,011,531shares(3)The Average number in the quarter of outstanding shares on June 30, 2010; 34,092,627shareson June 30, 2009; 34,092,823shares※ 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;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) Qualitative Information Relating to Consolidated Business Performance
During the first quarter of the consolidated fiscal year, the North American market, which is one of Funai Electric’s
main markets, continued to show weak non-public employment figures while at the same time the end of tax cuts
relating to home acquisitions resulted in a significant drop in the housing market. These factors subsequently had ameasurable impact on consumer spending. In addition, concerns regarding a slowdown in government-backed
economic stimulus policies and the global impact of the European debt crisis that first started in Greece,
contributed to even murkier conditions in the outlook of the North American economy.
In the consumer electronics industry, demand for LCD televisions (one of Funai Electric’s main product lines)
continued to increase on a global scale as LED-backlight equipped LCD televisions gained in popularity andgovernment-backed measures to boost spending in Japan and China took hold. The market is anticipated to further
expand in the future as 3-D and Internet-ready units are brought onto the market. On a negative note, due toinsufficient supply of component parts and materials, there is tight supply and demand for LED-backlight equipped
panels. In addition, intensifying competition has led to a fall in unit prices.
As a result of the above factors, the Group posted net sales of JPY74,958 million (a fall of 3.5% from the same
period last year) for the first quarter of the consolidated fiscal year.
In terms of profit, the Group posted operating income of JPY2,518 million (a fall of 32.0% from the same period
last year), ordinary income of JPY1,284 million (a fall of 68.5% from the same period last year) mainly due toexchange-rate losses, and a quarterly net income of JPY433 million (a fall of 86.3% from the same period last year).
Segment conditions by location were as follows:i) Japan
Growth was achieved for LCD televisions and Blu-Ray disc related devices. In addition, printer sales rose as aresult of an increase in orders from OEM customers. As a result, the Group posted first quarter net sales of
JPY38,554 million (an 62.4% increase from the same period last year) and first quarter operating income of
JPY2,951 million (an 71.9% increase from the same period last year) for the Japan market.
ii) North America
As a result of halting the production of TV set-top boxes1 (STBs) in June of last year, no sales were generated
from this area. In addition, sales of LCD televisions fell due to increased competition while the sales of DVD
players and Blu-Ray Disc related products also fell as compared to the same period last year. As a result, theGroup posted first quarter net sales of JPY33,999 million (a fall of 35.2% from the same period last year) and afirst-quarter operating loss of JPY201 million (as compared to a JPY2,908 million operating profit in the same
period last year) in the North American market.
1
This product converted digital signals to analog signals, allowing users to view digital terrestrial broadcasts on
an existing analog television. In the United States, analog terrestrial broadcasting ended in June 2009.
iii) Asia
As a result of components and other sales, the Group posted first quarter net sales of JPY82 million (a fall of
31.3% from the same period last year) and first-quarter operating income of JPY1,354 million (a fall of 14.2%
from the same period last year) in the Asia market.
iv) Europe
Although there was a decline in DVD-related products, growth was achieved in the field of LCD televisions. As
a result, the Group posted first quarter net sales of JPY2,322 million (a 75.8% increase from the same period lastyear) and first quarter operating loss of JPY123 million (as compared to a JPY571 million operating loss in thesame period last year) in the European market.
Sales by Product Segment were as follows:i) Audio- visual Equipment
In the visual products sector, market prices for LCD televisions continued to fall as competition heightened.
However, the Group was able to increase the volume of units sold and as a result, achieved a growth in sales. In
the field of DVD related products, despite the top-line contribution of Blu-Ray disc recorders that were launched
onto the market during the 3rd quarter of the previous fiscal year, sales fell significantly from the same period
last year. This was mainly because of the decline in sales of DVD players as demand fell (DVD sales have gone
through a full demand cycle) as well as the lack of sales generated by TV STBs in the US market after thetermination of production due to the end of life for such devices in June of last year. Consequently, first quarter
net sales for this product segment fell to JPY49,204 million (a fall of 18.8% from the same period last year).
ii) Information Equipment
In the information equipment sector, sales of printers rose as a result of an increase in orders from OEM
customers. Consequently, first quarter net sales for this product segment reached JPY17,110 million (a 56.0%
increase from the same period last year).
iii) Others Products
Sales of other products that are not included in the above categories totaled JPY8,643 million (a 42.5% increase
from the same period last year).

Note: As of the first quarter of the consolidated fiscal year, sales of antennas that were previously included underthe “Audio-visual Equipment” segment has been transferred to the “Other” segment. Further, prior year sales
figures for “Visual Products” include the sale of antennas. Sales of antennas during the first quarter of last year
totaled JPY1,127 million.
(2) Qualitative Information Relating to Consolidated Financial Position
Our financial position at the end of first quarter is described below.
Assets increased by JPY13,539 million as compared to the figure at the end of the previous consolidated fiscal year.
Specifically, trade notes and accounts receivable, goods and products, and raw materials and inventories increasedby JPY7,179 million, JPY7,950 million, and JPY6,647 million, respectively, while cash and cash equivalents fell by
JPY11,023 million.
Liabilities also increased by JPY19,355 million as compared to the figure at the end of the previous consolidated
fiscal year. Specifically, trade notes and accounts payable increased by JPY20,663 million.
Net assets fell by JPY5,815 million as compared to the figure at the end of the previous consolidated fiscal year.
Specifically, foreign currency translation adjustment account decreased by JPY4,976 million.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
Funai Electric Co., Ltd. has not revised its consolidated operating results forecast released on May 10, 2010.
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. Other(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) Application of simplified accounting procedure and use of unique accounting procedure for preparation of financial
statements covering consolidated accounting for fiscal quarter
1. Simplified accounting procedure
The amount of allowance for depreciation and amortization is calculated by distributing the applicable amountfor the consolidated fiscal year over fiscal terms. This is because our company, as well as our consolidated
domestic subsidiaries, adopt the diminishing balance or fixed percentage depreciation method (except forbuildings acquired on or after April 1, 1998 that do not include incidental facilities, which are calculated using
the fixed amount or straight line depreciation method).
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.
The corporate tax adjustment is included in the indicated corporate taxes.
(3) Summary of Changes to General Rules and Procedures as well as Denotation Methods for Accounting Treatment
Changes Relating to Items Concerning Accounting Procedure Standards
1. Adoption of the “Accounting Standard for Equity Method Accounting of Investments” and the “Practical
Solution for the Unification of Accounting Policies Applied to Associated Companies Accounted for Using theEquity Method”
As of the current first quarter consolidated financial statements, the Group has adopted the AccountingStandard for Equity Method Accounting of Investments (Statement No. 16 of the Accounting Standard Boardof Japan dated March 10, 2008) and the Practical Solution for the Unification of Accounting Policies Applied
to Associated Companies Accounted for Using the Equity Method (Practical Issues Task Force No. 24 of the
Accounting Standard Board of Japan dated March 10, 2008). There is no impact to ordinary income or net
income before taxes and other adjustments for the current quarter as a result of this change.
2. Adoption of Accounting Standards for Asset Retirement Obligations
As of the current first quarter consolidated financial statements, the Group has adopted the AccountingStandard for Asset Retirement Obligations (Statement No. 18 of the Accounting Standard Board of Japan dated
March 31, 2008) and the Implementation Guidance on the Accounting Standard for Asset Retirement
Obligations (Implementation Guidance No. 21 of the Accounting Standard Board of Japan dated March 31,2008). There is no impact to operating income, ordinary income, or net income before taxes and otheradjustments for the current quarter as a result of this change.

(4) Other
Corrective action implemented based on the application of the Anti-Tax Haven Law
1. On June 28, 2005 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 theincome 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, for taxation purposes. We applied for an assessment by the
Administrative Review Office of the Osaka Regional Taxation Bureau on July 25, 2006, and filed an appeal tohave the action cancelled with the Osaka District Court on November 16, 2006, as we object to this corrective
action.
Thereafter, on July 3, 2008, we received a written verdict on this case from the Administrative Review Officeof the Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. This arbitrationis truly unfortunate and unacceptable. Currently, we are making every effort to assert the validity of ourposition to the court.
The additional tax amounts to JPY16,651 million (JPY19,184 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 beenclarified through the amendment of the “Handling of Audits Relating to Accounting Procedures andDisclosures for Taxes” (Report No. 63 of the Auditing and Guaranteeing Work Committee of the JapaneseInstitute of Certified Public Accountants) on March 8, 2007.
2.

On June 16, 2008 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 theduration of three years, from April 1, 2004, to March 31, 2007, for taxation purposes. In response, we applied
for an assessment by the Administrative Review Office of the Osaka Regional Taxation Bureau on August 6,
2008 and filed an appeal to have the action cancelled with the Osaka District Court on November 14, 2008.
Thereafter, on July 23, 2009, we received a written verdict on this case from the Administrative Review Officeof the Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. The Company
deems this decision to be truly unfortunate and unacceptable, and we intend to continue asserting the validityof our position to the court in the future. At present, the Osaka District Court is reviewing the action in
conjunction with the previous action (dated June 28, 2005).
A provisional estimate for the additional tax, including corporate, residential, and business taxes, amounts to
JPY15,038 million (JPY16,838 million including incidental taxes). This amount has been processed as
expenses under the category of “retroactive corporate taxes” in this first fiscal quarter of the consolidated fiscal
term.
Since decisions regarding the tax system under action will be made according to the condition of the applicableoverseas subsidiaries at the time such subsidiaries’ fiscal years are completed, we can only offer reference
figures at this time. As such, in regard to the consolidated fiscal years following the year of the investigation(i.e., the fiscal years ending March 2008 and those thereafter), a calculation to assess the impact of theapplicable tax system on the income of the Hong Kong subsidiary was carried out. The calculated impact at theparent company level after deducting the dividend income received from the Hong Kong subsidiary for the
fiscal years ended March 2008 and 2009 was estimated to be JPY3,000 million including corporate, residential,
and business taxes. Due to the aforementioned reason, however, the accounting procedure for the figure
relating to this effect has not yet been conducted.

3. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
1st Quarter FY2010(As of June 30, 2010)

Fiscal year 2009
(As of March 31, 2010)ASSETS;
Current Assets
Cash and deposits

75,021

86,045

Notes and accounts receivable-trade42,33435,154Merchandise and finished goods

28,80020,850Work in process

3,293

1,510

Raw materials and supplies

22,704

16,057

Others

8,806

7,717

Allowance for doubtful accounts

△ 189

△ 179

Total current assets

180,770

167,155

Property, plant and equipment

16,964

15,654

Intangible assets

4,509

4,874

Others15,65917,148

Allowance for doubtful accounts

△ 306

△ 775

Total investments and other assets

15,353

16,373

Total noncurrent assets

36,82736,902

217,597

204,057

Notes and accounts Payable-trade51,96831,305

Short-term loans payable

2,881

6,338

Income taxes payable

874

1,799

Provision

2,159

2,306

Others

18,047

14,457

Total current liabilities

75,93056,208433

566

Provision

2,394

2,428

Others

1,874

2,073

Total noncurrent liabilities

4,702

5,069

80,632

61,277

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Long-term loans receivable

TOTAL LIABILITIES(Mil. Yen)
1st Quarter FY2010(As of June 30, 2010)

Fiscal year 2009
(As of March 31, 2010)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

118,342

119,272

Treasury stock△ 24,341△ 24,340

158,526

159,457

476

470

Foreign currency translation adjestment△ 22,913△ 17,936

Total valuation and translation adjestments△ 22,437△ 17,465

Subscription rights to shares

70

62

Minority interests

804

726

TOTAL NET ASSET

136,964

142,779

TOTAL LIABILITIES AND NET ASSETS

217,597

204,057

Total shareholders' equity
Valuation and translation adjustments
Valuation difference on avaiable-for-sale securities

(2).Concolidated quartely statements of income(Mil. Yen)
1st Quarter FY2009

1st Quarter FY2010( from April 1, 2009
to June 30, 2009 )77,668( from April 1, 2010
to June 30, 2010 )
74,958

Cost of sales

62,42961,938Gross profit

15,23913,020

Selling, general and administrative expenses

11,532

10,501

Operating income

3,706

2,518

Interest income

262

78

Dividends income20

11

Foreign exchange gains

98

-

Other

76

60

Total non-operating income

458

150

Interest expenses

30

16

Foreign exchange loss

-

1,346

Equity in losses of affiliates

25

1

Other

26

19

Total non-operating expenses

83

1,384

4,081

1,284

Profit on Sales of Investment Securities

34-

Reversal of allowance for doubtful accounts

-

4

Other

7

2

Total extraordinary income

41

6Loss on disposal of noncurrent assets

05Loss on valuation of Investment Securities

4-

Liquidation loss on affiliated company

11

88

Other

0

1

Total extraordinary losses

16

95

4,106

1,196

881

674

Loss before minority interests-

521

Minority interests in income

54

88

3,171

433

Net sales

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Income before income taxes and minority interests
Income taxes

Net income/ loss

(3).Concolidated quartely statements of cash flows(Mil. Yen)
1st Quarter FY2009

1st Quarter FY2010( from April 1, 2009
to June 30, 2009 )( from April 1, 2010
to June 30, 2010 )Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

4,106

1,196

Depreciation and amortization

1,365

1,442

Increase(decrease) in allowance for doubtful accounts

△ 765

12

Increase(decrease)in provision for retirement benefits

20

2

△ 283

△ 89

Interest expenses

30

16

Equity in (earnings) losses of affiliates

25

1

△ 34

-

Interest and dividends income

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

4-

Decrease (increase) in notes and accounts receivable-trade△ 10,141△ 10,094

Decrease (increase) in inventories△ 6,033△ 18,942

Increase (decrease) in notes and accounts payable-trade

13,63924,402Other, net

3,638

3,396

Subtotal

5,574

1,343

453

97

△ 30

△ 16

△ 1,721△ 1,475

4,276

△ 51

△ 39,873△ 20,169

45,217

33,108△ 1,123△ 2,761Interest 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

38

18

Purchase of intangible assets

△ 144

△5

Purchase of investment securities

△ 25

△ 51

184

-

Proceeds from sales of investment securities
Other, net

△ 92

△ 35

Net cash provided by (used in) investment activities

4,180

10,102△ 6,493△ 3,273600-

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Increase of long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

△ 299

△ 133

△ 1,363△ 1,363

△ 12

△ 41

△ 7,570△ 4,8124△ 1,013

Net increase (decrease) in cash and cash equivalents

890

4,225

Cash and cash equivalents at beginning of period

40,18034,063-△ 59

41,07038,228Decrease in cash and cash equivalents due to exclusion from consolidation

Cash and cash equivalents at end of period:

(4) Notes for Continuing Enterprises
Not Applicable(5) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.

Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information

Previous First Quarter (April 1, 2009 - June 30, 2009)(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

23,73652,492

119

1,321

77,668−77,668Inter-segment sales

41,846

8

44,076

1

85,932(85,932)−

Total

65,58252,50044,195

1,322

163,601(85,932)

77,668

1,716

2,908

1,579

△571

5,632

(1,925)

3,706

Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales

Previous First Quarter (April 1, 2009 - June 30, 2009)(Units: Million Yen)

N. America
Overseas sales

58,847

Asia

Europe

1,814

6,102

Other
1,336

Consolidated sales
Ratio of overseas sales to consolidated sales (%)

Total
68,10077,668

75.8

2.3

7.9

1.7

87.7

[Segment Information]
1. Summary of Reporting Segments
The Group’s reporting segments are based on those units within the Group where separate financial
information is available and where the Chief Executive Officer (Representative Director, President andExecutive Officer) of the Group periodically deliberates over matters such as the distribution ofmanagement resources and financial performance of such segments.
The Group’s main business is to manufacture and sell electrical equipment and devices. Within Japan,such functions are the responsibility of DX Antenna Co., Ltd. Overseas, the areas of the United States,
Asia and Europe are managed by Funai Corporation, Inc. (North America), P&F USA, Inc. (North
America), Funai Electric (H.K.) Ltd. (Asia), Funai Electric (Polska) Sp.z o.o (Europe), and other locallydomiciled entities. Each locally domiciled entity is an independently managed unit that engages inbusiness activities after formulating comprehensive strategies on the products to carry in the region.
Consequently, the Group is comprised of location-specific segments that are based on its manufacturing
and sales structure and have established “Japan”, “North America”, “Asia” and “Europe” as its four
reporting segments.
2.

Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment
First Quarter Consolidated Fiscal Period – Year to Date (April 1, 2010 to June 30, 2010)

Current First Quarter (April 1, 2010 - June 30, 2010)(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

38,55433,99982

2,322

74,958−74,958Inter-segment sales

39,846

056,1880

96,035(96,035)−

Total

78,401

33,99956,2702,322

170,993(96,035)

74,958Net Sales

Operating

Income

and

2,951
△201
1,354
△123
3,980
(1,461)
2,518
Losses(△)
Note:
1. The negative JPY1,461 million adjustment amount under segment income includes items such as the
JPY16 million relating to the cancellation of inter-segment transactions, JPY277 million of overall
Group expenses that are not apportioned to each reporting segment, and the JPY1,200 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.
3.

Information on Impairment Losses Relating to Fixed Assets and Goodwill by Reporting Segment(Impairment Losses on Fixed Assets)
Does not apply(Major Fluctuations in Goodwill)
Does not apply(Increase in Goodwill on Major Liabilities)
Does not apply(Additional Information)
As of the current first quarter consolidated fiscal period, the Group has adopted the Revised AccountingStandard for Disclosures about Segments of an Enterprise and Related Information (Statement No. 17 of the
Accounting Standard Board of Japan dated March 27, 2009) and the Implementation Guidance on the
Accounting Standard for Disclosures about Segments of an Enterprise and Related Information(Implementation Guidance No. 20 of the Accounting Standard Board of Japan dated March 21, 2008).

(6) Notes of remarkable changes in Shareholders Equity:
Not Applicable4. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Previous Year First Quarter

Current Year First Quarter

From April 1, 2009

From April 1,2010

To June 30, 2009

To June 30, 2010

AmountPercent

AmountBy Equipment Type％% increase or
decrease fromthe same periodof the previous
consolidated
fiscal year

Percent

Percent％％

Audiovisual Equipment

60,62978.1

49,204

65.7

△18.8

Information Equipment

10,971

14.1

17,11022.8

56.0

Other Equipment

6,067

7.8

8,643

11.5

42.5

77,668100.0

74,958

100.0

△3.5

％

％

Total

％
Japan

By Region

9,568

12.3

20,019

26.7

109.2

N. America

58,84775.8

41,004

54.7

△30.3

Europe

6,102

7.9

7,217

9.6

18.3

Asia

1,814

2.3

3,061

4.1

68.7

Other Areas

1,336

1.7

3,655

4.9

173.5

Subtotal

68,10087.7

54,939

73.3

△19.3

77,668100.0

74,958

100.0

△3.5

ExportTotal(Note) Main Products by Equipment Type
Equipment
Audiovisual Equipment

Main Products
LCD Television, DVD Player, DVD Recorder,
Blu-ray Disc Player, Blu-ray Disc Recorder

Information Equipment

Printer

Other Equipment

Receiver-Related Electronic Equipment

From FY2010 antenna set for North America is classified in 'Others' from 'Others in Audio Visual Equipment'
which was classified in FY2009.The sales amount of antenna set for North America in the 1st quarter in FY2009
was 1,127mil.yen.

(Reference) Change in Operating Results for the Most Recent Quarters
Fiscal Period Ending March 2011 (Consolidated)
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2010

July - Sept 2010

Oct - Dec 2010

Jan - March 2011

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

74,958−−−Gross Profit

13,020−−−Operating Income

2,518

−

−

−

Ordinary Income

1,284

−

−

−

Quarterly Net Income Before
Taxes and Other Adjustments

1,196

−

−

−

433

−

−

−

Quarterly Net Income/Loss

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

12.71

−

−

−

−

−

−

Fully Diluted Quarterly Net
Income per Share

12.62

−

−

−

−

−

−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

217,597−−−

Net Assets

136,964

−

−

−

Yen

Yen

Yen

−

−

−

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2009

July - Sept 2009

Oct - Dec 2009

Jan - March 2010

Yen

Net Assets per Share

3,991.75

Fiscal Period Ended March 2010 (Consolidated)

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

77,66889,42680,977

66,838Gross Profit

15,23918,772

13,726

9,731

Operating Income

3,706

6,362

1,477

△ 398

Ordinary Income

4,081

5,506

2,453

△ 358

Quarterly Net Income Before
Taxes and Other Adjustments

4,106

5,453

2,449

△ 1,131

Quarterly Net Income/Loss

3,171

4,138

1,846

1,172

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

93.01

121.40

54.16

34.39

Fully Diluted Quarterly Net
Income per Share

92.42

120.53

53.73

34.14

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

210,089

214,067

216,613204,057

Net Assets

136,253

135,948

139,813

142,779

Yen

Yen

3,970.00

4,080.52

Yen

Net Assets per Share

3,981.10

Yen

4,164.86

from 2010.4.1
to 2010.6.30

Page
1. Summary of 1Q 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 Flow2

2. Operating Activities（Consolidated）(1) Sales by Equipment

2(2) Sales by Areas in Equipment

3(3) Sales by Equipment in Areas

31. Summary of First Quarter Operating Results (Consolidated)(1) Operating Results, Financial Conditions（Units：100million yen, %）FY20091Q
Amount%

FY2010
1Q

Full-Year
Change AmountNet Sales

776 100.0

30.6

Operating Income

37

4.8

275.0

Ordinary Income

40

5.3 △ 8.2

Net Income afterTax

31

4.1

−

Total Assets

2,100

−

−

Net Assets

1,362

−

−

%

Change Amount

3,149 100.0

4.0%

Full-Year (Projections)
Change Amount749 100.0 △ 3.5%

3,500 100.0

Change
11.1

3.5

690.9

25

3.4 △ 32.0

130

3.7

16.6

116

3.7

852.9

12

1.7 △ 68.5

129

3.7

10.4

103

3.3

−

4

0.6 △ 86.3

100

2.9 △ 3.2

2,040

−

−

2,175

−

−

−

−

−

1,427

−

−

1,369

−

−

−

−

−

111

（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）

FY2009FY2010Full-Year

1Q
96.75

Average Rate in each Period

Full-Year (Projections)

1Q
91.28

92.60

90.00

(2) Profitability and Per Share Data etc.
FY20091Q

FY2010Full-Year

Full-Year (Projections)

1Q

(%)

19.6

18.2

17.4

17.7

Operating Income Ratio (%)

4.8

3.5

3.4

3.7

Ordinary Income Ratio (%)

5.3

3.7

1.7

3.7

Shareholders' Equity Ratio (%)

64.6

69.6

62.5

−

Net Assets Per Share (Yen)

3,981.10

4,164.86

3,991.75−

Net Income Per Share (Yen)

93.01

302.9712.71

293.32Gross Profit Ratio

Return On Asset

(%)

1.4

5.1

0.2

−

Return On Shareholders' Equity

(%)

2.2

7.5

0.3

−

(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY20091Q
AmountFull-Year
AmountChange12

Capital Expenditures

FY2010
1Q
ChangeAmount43 △ 14.0

100.0

AmountChange30

FY20091Q

Full-Year (Projections)
Change
76

150.0

76.7

FY2010Full-Year

1Q

Full-Year (Projections)

Amount% to Sales

Depreciation Expenses

10

1.3

11.1

43

1.4

19.4

10

1.3

0.0

R&D

31

4.0 △ 3.1

134

4.3

3.1

31

4.1

0.0

Change Amount−1−% to Sales

Change Amount% to Sales

Change Amount% to Sales

Change

54

1.5

25.6

161

4.6

20.1

(4) Cash Flow
（Units：100million yen）
FY2009FY2010Full-Year

1Q

−

108

11

−

57

14

−

36

Income Before Income Taxes

41

Depreciation Expenses

13
△

12

△ 129

Cash flows used in investing activities

41△

Free Cash flows

83△

Cash flows provided by financing activities

Effect of exchange rate changes

△

75
0

on cash and cash equivalents
Net increase in cash andcash equivalents

△

8

△

0

42

OthersFull-Year (Projections)

1Q

Cash flows provided by operating activities

△ 25

−

27

101

−

9

101

−

78

△ 48

−

4

△ 10

−

64

42

−

2. Operating Activities (Consolidated)(1) Sales by Equipment（Units：100million yen, %）FY2010FY20091Q
Amount%Full-Year
Change Amount%

1Q
Change Amount%Full-Year (Projections)
Change Amount%

Change1.3

492

65.7 △ 18.8

2,565

386

12.3 △ 4.0

70

9.4 △ 42.6

293

8.4 △ 24.1

81.0

189

6.0

54.9

51

6.8

34.2

296

8.5

56.6

44.2

72.4

1,594

50.6

18.8

362

48.3

5.5

1,929

55.1

21.0

103

13.3

6.2

166

5.3 △ 62.3

1.2 △ 91.3

47

1.3 △ 71.7

Information Equipment

109

14.1

1.9

546

17.3

21.4

171

22.8

56.0

618

17.6

13.2

Others61

7.8 △ 13.4268

8.5 △ 1.5

86

11.5

42.5

317

9.1

18.3

Total

776 100.0

3,500 100.0

11.1

Audio Visual Equipment

606

78.1

45.5

2,335

DVD

122

15.7

22.0

BD Players

38

4.9

LCD Televisions

343

Others30.6

74.2

3,149 100.0

4.0

9749 100.0 △ 3.5

73.3

Note:From FY2010 antenna set fot the North America is classified in 'Others' from 'Others in Audio Visual Equipment' which was classified in
FY2009.

−2−

9.9

(2) Sales by Areas in Equipment（Units：100million yen, %）FY2010FY20091Q
Amount%Full-Year
Change Amount%

1Q
Change Amount%Full-Year (Projections)
Change Amount%

Change

606

78.1

45.5

2,335

74.2

1.3

492

65.7 △ 18.8

2,565

73.3

North America

546

70.3

56.4

1,970

62.5 △ 0.1

33144.2 △ 39.4

1,879

53.7 △ 4.6

Europe23

3.0 △ 41.0125

4.0 △ 40.8

30

4.0

Audio Visual Equipment

30.4

167

4.8

9.9

33.6

Asia and Others

0

0.0

−

18

0.6

−

8

1.1

−

67

1.9

272.2

Japan

37

4.8

27.6

222

7.1

80.5

123

16.4

232.4

452

12.9

103.6

109

14.1

1.9

546

17.3

21.4

171

22.8

56.0

618

17.6

13.2

North America

40

5.2 △ 35.5

185

5.9

6.3

66

8.8

65.0

275

7.8

48.6

Europe

38

4.9

22.6

177

5.6

18.8

42

5.6

10.5

220

6.3

24.3

Asia and Others

28

3.6

100.0

168

5.3

37.7

58

7.7

107.1

123

3.5 △ 26.8

Japan

3

0.4

−

16

0.5

220.0

5

0.7

66.7

0

0.0

−

Others61

7.8 △ 13.4268

8.5 △ 1.5

86

11.5

42.5

317

9.1

18.3

Total

776 100.0

3,500 100.0

11.1

Information Equipment

30.6

3,149 100.0

4.0

749 100.0 △ 3.5(3) Sales by Equipment in Areas（Units：100million yen, %）FY2010FY2009Full-Year

1Q
Amount%Change Amount%

1Q
Change Amount%Full-Year (Projections)
Change Amount%

Change

588

75.8

42.2

2,164

68.7

0.1

410

54.7 △ 30.3

2,195

62.7

Audio Visual Equipment

546

70.3

56.4

1,970

62.5 △ 0.1

33144.2 △ 39.4

1,879

53.7 △ 4.6

Information Equipment40

5.2 △ 35.5

185

5.9

6.3

66

8.8

65.0

275

7.8

48.6

Others2

0.3 △ 33.3

9

0.3 △ 43.8

13

1.7

550.0

41

1.2

355.6

61

7.9 △ 14.6305

9.7 △ 16.2

72

9.6

18.3

387

11.1

26.9

Audio Visual Equipment23

3.0 △ 41.0125

4.0 △ 40.8

30

4.0

30.4

167

4.8

33.6

Information Equipment

38

4.9

22.6

177

5.6

18.8

42

5.6

10.5

220

6.3

24.3

Others

0

0.0

−

3

0.1 △ 25.0

0

0.0

−

0

0.0

−

31

4.0

82.4

196

6.2

67

9.0

116.1

190

North America

EuropeAsia and Others

48.5

1.4

5.4 △ 3.1

Audio Visual Equipment

0

0.0

−

18

0.6

−

8

1.1

−

67

1.9

Information Equipment

28

3.6

100.0

168

5.3

37.7

58

7.7

107.1

123

3.5 △ 26.8

Others

3

0.4

0.0

10

0.3

11.1

1

0.2 △ 66.7

0

0.0

−

96

12.3

3.8

484

15.4

30.5

200

26.7

109.2

728

20.8

50.4

Audio Visual Equipment

37

4.8

27.6

222

7.1

80.5

123

16.4

232.4

452

12.9

103.6

Information Equipment

3

0.4

−

16

0.5

220.0

5

0.7

66.7

0

0.0

−

Others56

7.1 △ 11.1

246

7.8

1.7

72

9.6

28.6

276

7.9

12.2

3,149 100.0

4.0

749 100.0 △ 3.5

3,500 100.0

11.1

Japan

Total

776 100.0

30.6

−3−

272.2

（Company）

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