From April 1, 2008
To March 31, 2009

BRIEF SETTLEMENT OF ACCOUNTS FOR THE FISCAL YEAR ENDED MARCH 31, 2009
May 13, 2009
Corporate Resolution

1. Summary of Operating Results (Consolidated)(Million yen)

Fiscal Year 2007

Fiscal Year 2008

From April 1, 2007
to March 31, 2008

From April 1, 2008
to March 31, 2009

AmountAmount%%%Net Sales

Rate ofincrease or
decrease%%

277,167100.0

302.777

100.0

9.2

Operating Income/Loss△ 2,405

△ 0.9

1,409

0.5

-

Ordinary Income/Loss

△

39

△ 0.0

1,226

0.4

-

Net Income/Loss after Tax(Before subsidiary dividend)△5,376

△1.9

△ 526

△ 0.2

-

Net Loss after Tax△5,376△ 1.9△ 17,364△ 5.7-

Net Loss per Share△ 157.71△ 509.33

Note: The Company has 13 consolidated subsidiaries and 2 equity-method affiliated companies.

2. Summary of Operating Results (Non-Consolidated)(Million yen)

Fiscal Year 2007

Fiscal Year 2008

From April 1, 2007
to March 31, 2008

From April 1, 2008
to March 31, 2009

AmountAmount%Rate ofincrease or
decrease

%

%

%

%

222,955

100.0

203,890

100.0

△ 8.6

△ 6,836△ 3.1△1,625△0.8-

Ordinary Income

19,4548.7

10,9975.4△43.5

Net Income after tax

18,834

8.4

8,145

4.0

△56.8

Net Income/Loss after Tax

18,834

8.4△ 8,693△4.3-

Net Sales
Operating Income/Loss

Net Income/Loss per Share552.44△ 254.98

Member, Financial Accounting Standards Foundation

Financial Report for the 12-Month Period ended March 31, 2009
May 13, 2009

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Inquiries: Representative’s
President and CEO
Tomonori Hayashi
position and name
Administrator’s
Associate Director,
Hisao Fuke
TEL: (072) 870-4395
position and nameAccounting Department
Scheduled date of Annual General Shareholders Meeting; June 19, 2009
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; June 19, 2009
Scheduled date of Commencement of Annual Dividend Payment; June 4, 2009
1. Summary of Consolidated Results for the Fiscal Year Ended March 2009 (April 1, 2008 – March 31, 2009)(% denotes year on year)(1) Operating Results (Consolidated)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen

Fiscal Year 2008
Fiscal Year 2007

302,777
277,167

%

9.2
△30.1

Million yen

1,409△2,405%

Million yen

%

－
－

1,226
△39

－
－

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted BasisNet Income to
Shareholders’Equity

Yen

Yen

%

△ 509.33－△ 11.9△ 157.71－△ 3.1(Reference) Investment profit or loss recognized on equity basis
Fiscal Year ended March 31, 2009 △ 171 million yen
Fiscal Year ended March 31, 2008 △ 39 million yen

Fiscal Year 2008
Fiscal Year 2007

Million yen△ 17,364△ 5,376%－－

Ordinary Income Operating Income
to Total Assets
to Net Sales
%

%

0.6
△0.0

0.5
△ 0.9

Shareholders’Equity Ratio

Net Assets
Per Share(2) Consolidated Financial Position
Total Assets
Million yen

199,882
224,415

Fiscal Year 2008
Fiscal Year 2007
(Reference)

Net Assets
Million yen

135,596
158,356

%

Yen

67.6
70.3

3,963.72
4,630.58

Shareholders’ Equity

Fiscal Year ended March 31, 2009
Fiscal Year ended March 31, 2008

135,134 million yen
157,871 million yen(3) Consolidated Cash Flows

Fiscal Year 2008
Fiscal Year 2007

Cash Flows Provided
by Operating
Activities

Cash Flows Used in
Investing Activities

Cash Flows
Provided by
Financing Activities

Outstanding Amountof Cash and Cash
Equivalents at theEnd of Period

Million yen

Million yen

Million yen

Million yen△ 728△13,713△10,795△9,475△ 2,563△ 8,141

40,18057,1002. Dividends
Dividend per Share

Corresponding
Date

1Q End2Q Endyen

3Q Endyen

Year-Endyen

Annual

Total
Dividend
Payment

Dividend to Net
Assets（Consolidated） (Consolidated）

%

yen

yen

Million yen

1,704
1,363

Fiscal Year 2007
Fiscal Year 2008

－
－

0.00
0.00

－
－

50.00
40.00

50.00
40.00

Fiscal Year 2009
(Projection)

－

0.00

－

40.00

40.00

Pay-out Ratio

%

－
－

1.0
0.9
35.0

3 Forecast of Consolidated Results for the Full Year (April 1, 2008 - March 31, 2009)(% denotes year on year)

Net Sales
Million yen
Six months ending Sep.30.2009

Full Year

174,500
340,000

Operating Income Ordinary Income
%

20.6
12.3

Million yen

4,100
6,000

%

△5.1
325.7

Million yen%

3,800 △36.6
5,300 332.2

Net Income

Net Income
Per Share

Million yen

%

Yen

3,000
3,900

－
－

87.99
114.394 Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): Yes
Add: P&F USA Inc.
(2) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results(1)Changes arising from revision of accounting standards: Yes, Changes of depreciation method on domestic
tangible fixed assets in accordance with newly
revised corporate tax law was enforced from
April 1, 2007. Affect on the profit and loss
statement is minimal.
(2)Changes arising from other factors: No(3) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of March 31, 2009; 36,104,196shares
as of March 31, 2008; 36,104,196shares(2)Number of shares of treasury stock as of March 31, 2009; 2,011,301shares
as of March 31, 2008; 2,011,003shares

(Reference)
1. Summary of Non-consolidated Results for the Fiscal Year Ended March 2009 (April 1, 2008 – March 31, 2009)(1) Operating Results (Non-consolidated)
Net Sales
Million yen

Fiscal Year 2008
Fiscal Year 2007

Fiscal Year 2008
Fiscal Year 2007

203,890
222,955(% denotes year on year)

Operating Income

Ordinary Income

Million yen

Million yen%△ 1,625△ 6,836

△8.6
△33.8

－
－

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted Basis

Yen

Yen

△254.98552.44%

10,997
19,454Net Income

%

△43.5
12.3

Million yen%△8,693
18,834－－－－(2) Financial Position(Non-consolidated)
Total Assets
Million yen

Fiscal Year 2008
Fiscal Year 2007
(Reference)

108,545
122,739Net Assets
Million yen

73,64584,019

Shareholders’ Equity

Fiscal Year ended March 31, 2009
Fiscal Year ended March 31, 2008

Shareholders’Equity Ratio

73,628 million yen
84,019 million yen

Net Assets
Per Share
%

67.8
68.5

Yen

2,159.63
2,464.41

1. Business Performance(1) Analysis of Business Performance① Summary of the consolidated fiscal year under review(Market environment)
With the exception of the United States and newly developing countries, during the first quarter of the consolidated
fiscal year under review the global economy slipped into negative growth and overall exhibited a slowing trend. During
the second quarter economic and business conditions deteriorated rapidly, not only in the leading industrialized countries
but in newly developing countries as well, particularly after the failure of a major U.S. investment bank in September
2008, and the global economy succumbed to a serious simultaneous slowdown as the financial crisis, which originatedin the subprime loan problem in the United States, spread from the stock markets and foreign exchange markets to thereal economy.
The home electronic appliances industry also confronted a harsh environment that included a rapid plunge in personal
consumption against the backdrop of the global economic slowdown, and prices for leading products including LCD
televisions continued to fall.
(Net sales)
Given such conditions, the Funai Group focused its efforts on further expanding sales while enhancing competitivenessby reducing selling, general and administrative expenses, thoroughly managing inventories and limiting cost increases.
As a result, net sales for the consolidated fiscal year under review increased 9.2% compared with the previous
consolidated fiscal year to JPY302,777 million.
Each of the businesses of the Funai Group is centered on the manufacture and sale of electronic equipment and devices.
The Company does not classify its products into business segments, but a breakdown of net sales by type of device isprovided below.
(a) Audio-visual equipment
In the audio-visual equipment category, the Company increased sales of LCD televisions as the result of expansionof its product lineup based on the brand licensing agreement with Royal Philips Electronics, despite the fact the
number of VCRs, CRT TVs and DVD-related products continued to decline as the market contracted. Strong sales of
set-top boxes* for televisions in the United States, and the full-scale introduction of Blu-ray disc players, for which
demand is expected to grow in the future, also contributed to higher sales. As a result, net sales of these products rose
25.2% compared with the previous consolidated fiscal year to JPY230,600 million.
* Devices to convert digital signals into analog signals, enabling viewers to watch terrestrial digital broadcastingon existing analog televisions. Terrestrial analog broadcasting in the United States is scheduled to end in June
2009.
(b) Information equipment
Net sales of information equipment fell 30.7% year-on-year to JPY45,005 million. Sales of digital still cameras
exceeded the level of the previous consolidated fiscal year, thanks to a recovery in orders from OEM partners. Salesof printers, however, declined as our OEM partners reviewed their merchandise strategies in light of the severe
competitive environment.
(c) Other
Net sales of other electronic devices slipped 3.0% compared with the previous consolidated fiscal year to JPY27,171
million.
A geographic breakdown of net sales indicates that while sales in North America, Asia and other regions exceeded thelevel achieved in the previous consolidated fiscal year, sales of core LCD televisions in Europe fell below the level ofthe previous consolidated fiscal year.
(Earnings)
Although affected by stiff price competition for key products, operating income was JPY1,409 million, compared with aloss of JPY2,405 million in the previous consolidated fiscal year. Ordinary income was JPY1,226 million, comparedwith a loss of JPY39 million one year earlier. The net loss for the consolidated fiscal year under review was JPY17,364
million, compared with a net loss of JPY5,376 million in the previous consolidated fiscal year. This partly reflected therecognition of JPY16,838 million as “income taxes for prior periods” in conjunction with an accounting revision basedon application of the “Anti-Tax Haven Law.”② Outlook for the next consolidated fiscal year
Throughout the next consolidated fiscal year, the uncertain, harsh conditions affecting the global economy are expected
to continue, with no signs of an economic recovery.
Although a severe environment is anticipated for the Funai Group as well, the Company will seek to improve operating
results by increasing sales of growth products such as LCD televisions and Blu-ray Disc-related products. The Company
will also pursue greater efficiency and profitability improvement through measures that include further promotion of the
FPS (Funai Production System), thorough cost reductions based on a review of fixed and variable costs, applications of
IT to various processes and operating improvements.
The outlook for the next consolidated fiscal year is provided below.

< Consolidated operating results >Net sales
JPY340,000 million (12.3% increase year-on-year)
Operating Income
JPY6,000 million (325.7% increase year-on-year)
Ordinary income
JPY5,300 million (332.2% increase year-on-year)
Net income
JPY3,900 million (unchanged)

For its earnings estimates, the Company has assumed an exchange rate of JPY95 = US$1.00. The operating results
outlook is a forward-looking statement about the future performance of the Company and is based on management’s
assumptions and beliefs in light of information currently available, and involves known and unknown risks anduncertainties. Various factors such as changes in economic conditions overseas, especially in the main U.S. market, andsevere price fluctuations may cause actual events and results to differ materially from those anticipated in thesestatements.
(2) Analysis of Financial Position
With regard to consolidated cash flow for the consolidated fiscal year under review, net cash used in operating activities
was JPY728 million. Net cash used in investing activities was JPY10,795 million. Net cash used in financing activities
was JPY2,563 million. The balance of cash and cash equivalents at end of the consolidated fiscal year under review was
JPY40,180 million.
The cash flow indicator trends for the Funai Group are provided below.

Shareholders’ equity ratio
Shareholders’ equity ratio on amarket capitalization basis
Ratio of cash flow tointerest-bearing debt
Interest coverage ratio

FY Ended
March 2005
68.2

FY Ended
March 2006
68.6

FY Ended
March 2007
68.5

FY Ended
March 2008
70.3

FY Ended
March 2009
67.6

183.1

138.8

140.6

52.1

49.1

0.5

一

0.3

一

一

63.8

一

38.7

一

一

Shareholders’ equity ratio: Equity capital/total assets
Shareholders’ equity ratio on a market capitalization basis: Total market capitalization/Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments* All indicators are calculated using financial values on a consolidated basis.
* Total market capitalization is calculated by multiplying the closing share price at the end of the consolidated fiscal yearby the number of shares outstanding (after deducting treasury stock) at the end of the consolidated fiscal year.
* Cash flow from operating activities shown on the Consolidated Statements of Cash Flows is used as operating cash flow.
Interest-bearing liabilities include all liabilities on which the Company pays interest that are accounted for on theConsolidated Balance Sheets. The amounts shown as interest expense on the Consolidated Statements of Cash Flows areused as interest payments.
* The ratio of cash flow to interest-bearing debt and the interest coverage ratio for the fiscal years ended March 2006,
March 2008 and March 2009 have been omitted because cash flow from operating activities was negative.
(3) Basic Policy Concerning Distribution of Earnings and Dividends for the Consolidated Fiscal Year under Review and
Next Fiscal Year
With regard to the distribution of earnings, the Company recognizes the return of earnings to shareholders is an
important management issue, and considers the maintenance of stable dividends while taking steps to strengthen the
Company’s management base to be a fundamental policy. The Company implements a positive dividend policy, whichtakes into consideration factors such as the operating environment, based on a dividend ratio of 1.0% of consolidated net
assets as a specific standard.
Based on the policy indicated above, for the fiscal year under review the Company plans to pay a year-end dividend of
JPY40 per share. The Company also projects a dividend of JPY40 per share in the next consolidated fiscal year.
The Company plans to implement dividend payments as a year-end dividend (once a year).
(4) Business and Other Risks
The Company has omitted disclosure of business and other risks because there are no material changes from theinformation described in the most recent financial statements (submitted on June 20, 2008).

2. Current Conditions of the Company’s GroupThe Company has omitted disclosure of this item because there are no material changes from the information reported in“Diagram of Operating Business Relationships (Business Contents)” and “Affiliated Companies” in the most recent
financial statements (submitted on June 20, 2008).
3. Management Policies(1) Basic Management Policy of the Company
As its basic management policy, Funai Electric Co., Ltd. will pursue its business activities by building strong trust andseeking the mutual prosperity of all parties related to the Company as its basic policy, by creating the most efficientdevelopment, manufacturing and sales organization possible and stably supplying high quality and fairly priced products
to global markets, based on a corporate creed of continual product improvements, promotion of deeper trust and further
harmony and mutual prosperity.
(2) Management Indicators Established as Objectives
As a management indicator for the Funai Group, the Company places the greatest emphasis on operating income margin,
and will seek to achieve an operating income margin of at least 5% at all companies over the medium term.
(3) Medium-term Management Strategy and Issues to be addressed
As the severe economic environment continues in the form of a simultaneous slowdown of the global economy, thehome electronic appliances industry is under pressure to stimulate new consumer demand for digital-related products,
and the acceleration of product development is becoming more and more important as prices of manufactured goods
continue to fall rapidly because of shorter product life cycles and the severe competitive environment among firms.
Given these conditions, the Company has prepared the management policies described below.
① Expansion of net sales and improvement of earnings
The foremost issue for the Funai Group is to improve earnings. To achieve this objective, the Company has positioned
three issues, namely (1) further enhancing cost competitiveness through further improvements based on the FPS (Funai
Production System), the Company’s unique productivity improvement system, a strengthening of materials and parts
purchasing capabilities, and a thorough review of selling, general and administrative expenses including fixed andvariable costs, (2) focusing on creating products that will sell with an emphasis on speed and (3) increasing net sales andensuring earnings over the medium to long-term, as its most important strategies.
In the audio-visual equipment category, the Company was able to expand its lineup of LCD television and Blu-ray
Disc-related products and establish its brand position by concluding a brand licensing agreement in April 2008 with
Royal Philips Electronics for use of the “Philips” and “Magnavox” names in North America, and completed thegroundwork that will enable the Company to execute its medium to long-term strategy for expanding market share in the
North America market. The Company will also undertake the development of products that take advantage of network
technologies expected to available in the near future.
In the information equipment category, in addition to its traditional products the Company will increase sales and boost
earnings by broadening the range of products that take advantage of Funai’s strength in mechatronics, a sector in which
the Company excels, to OEM and other customers.
Finally, the Company will seek further growth by also considering acquisitions of effective patents, as well as businessand capital alliances, with an eye on the future.
② Timely supply of products based on accurate responses to market needs
To develop viable products that will be in demand, the Company must further increase the speed at which it completes
the series of cycles from product planning to development, materials and parts purchasing, manufacturing and sales, bycontinuing to effectively apply IT and minimize the time lag in each operating division. This means optimizing theallocation of management resources (materials, people and capital). Based on this approach the Company will supply
products on a timely basis that accurately meet market needs.
③ Training and appointment of human resources
The Company recognizes that improving employee capabilities is critical for implementing the medium to long-termbusiness strategy of the Funai Group. Therefore the Company will actively train and appoint employees, particularly
younger employees, by strengthening and expanding its internal training systems.

4. Consolidated Financial Statements(1).Consolidated Balance Sheets(Mil. Yen)
Fiscal year 2007
(As of March 31, 2008)

Fiscal year 2008
(As of March 31, 2009)ASSETS;
Current Assets
Cash and deposits

68,07496,503

Notes and accounts receivable-trade

26,841

28,844Inventories

35,085-Merchandise and finished goods-

20,925Work in process

-

1,635

Raw materials and supplies

-

8,116

3,604

2,763

-

1,350

Other

13,802

3,843

Allowance for doubtful accounts

△ 286

△ 273

Total current assets

147,122

163,709

15,07813,370Depreciation and amortization△ 7,969△ 7,505

Buildings and structures (net)

7,108

5,864

Machinery,equipment and motor vehicles

21,332

21,192△ 19,572△ 19,301

Machinery,equipment and motor vehicles (net)

1,759

1,891

Tools,furniture and fixtures

33,272

34,056

Depreciation and amortization△ 30,627△ 31,731

Tools,furniture and fixtures (net)

2,645

2,324

Lands

5,238

5,193

Lease assets-

294

Depreciation and amortization

-

△ 27

Lease assets (net)

-

266

Other

20

483

16,772

16,025

5,375

4,328

847

1,319

6,222

5,647

Deferred tax assets
Accrued refunded Income taxes

Noncurrent assets
Tangible fixed assets
Buildings and structures

Depreciation and amortization

Total tangible fixed assets

Intangible assets
Patent right
Other
Total intangible fixed assets

(Mil. Yen)
Fiscal year 2007
(As of March 31, 2008)

Fiscal year 2008
(As of March 31, 2009)

Investment and other assets
Investment securities

9,041

5,820

40,819

431

2

4,329

5,476

5,480

Allowance for doubtful accounts△ 1,041△ 1,561

Total investments and other assets

54,297

14,49977,29336,173

224,415

199,882

Notes and accounts payable-trade25,811

28,157

Short-term loans payable

13,213

12,938

Accounts payables

11,39912,130

-

92

4,642

1,623

0

1

Allowance for bonus

202

302

Reserve for products guarantee

409

2,191

Allowance for liquidation loss on affiliated company

578

-

Other

4,242

2,943

Total current liabilities

60,49960,382

1,086

666

-

278

Deferred tax liabilities

617

26

Revalued deferred tax liabilities

291

291

Reserve for retirement benefits

1,464

1,316

Allowance for officers' retirement gratuities

1,020

1,026

Other

1,080

298

Total noncurrent liabilities

5,559

3,904

66,05864,286Long-term loans receivable
Deferred tax assets
Other

Total noncurrent assets
TOTAL ASSETSLIABILITIES;Current Liabilities

lease liabilities
Income taxes payable
Deferred tax liabilities

Noncurrent liabilities
Long-term loans payables
lease liabilities

TOTAL LIABILITIES(Mil. Yen)
Fiscal year 2007
(As of March 31, 2008)

Fiscal year 2008
(As of March 31, 2009)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

129,812110,047

Treasury stock△ 24,339△ 24,340

169,998

150,233

△ 63

△ 98

Foreign currency translation adjestment△ 12,063△ 14,999

Total valuation and translation adjestments△ 12,127△ 15,098

Subscription right to shares－

17

Minority interests

485

443

158,356

135,596

224,415

199,882

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

Total net asset
TOTAL LIABILITIES AND NET ASSETS

(2).Consolidated Statements of Income(Mil. Yen)
Ｆiscal year 2007

Fiscal year 2008

( from April 1, 2007
to March 31, 2008 )277,167( from April 1, 2008
to March 31, 2009 )302,777

Cost of sales

231,869

258,303

Gross profit

45,29844,473

Selling, general and administrative expenses

47,70443,064△ 2,405

1,409Interest income

5,256

3380

Dividends income

67

58

Net sales

Operating income/loss(△）
Non-operating income

Other
Total non-operating income

247

454

5,571

3,892

592

351

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange loss
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary income/loss(△）

39

171

2,026

2,892

-

419

547

241

3,205

4,076

△ 39

1,226

-

357

Extraordinary income
Gain on prior period adjustment
Gain on sales of noncurrent assets

353

6

Profit on Sales of Investment Securities
Allowance for Liquidation Loss on
Affiliated Company Transfer
Other

5,625

26

-

91

10

11

Total extraordinary income

5,988

494

Extraordinary loss
Loss on prior period adjustment

528-

Loss on disposal of noncurrent assets

232

94

Special sales promotion-

850

Estimated loss in value of securities

-

3,087

Liquidation loss on affiliated company
Allowance for Liquidation Loss on
Affiliated Company Transfer
Special retirement expenses

-

644

577

-

448

-

Surcharge

391-

Patent fee for prior period

718

-

Other

541

306

Total extraordinary loss

3,439

4,983

Income before income taxes

2,509△ 3,263

Income taxes

6,208

1,948

-

△ 1,335

Refund of income taxes
Income taxes for prior periods-

16,838

Income Tax Adjustments

1644△ 3,560

Total income taxes

7,852

13,891

34

210△ 5,376△ 17,364

Minority interests in income
Net income

(3).Consolidated Statements of Changes in Shareholders' Equity(Mil. Yen)
Fiscal year 2007

Fiscal year 2008

( from April 1, 2007
to March 31, 2008 )( from April 1, 2008
to March 31, 2009 )Shareholders' equity
Capital stock
Balance at the end of previous period

31,27831,2801-Changes of items during the period
Issuance of new shares
Total changes of items during the period

1-31,28031,28033,24333,245Issuance of new shares

1-

Total changes of items during the period

1-33,24533,245

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

139,468

129,812-△ 695

Dividends from surplus△ 1,875△ 1,704

Net loss
Loss on unification of accounting period of consolidated
subsidiaries
Total changes of items during the period△ 5,376△ 17,364△ 2,403-△ 9,655△ 19,069

129,812110,047△ 24,336△ 24,339

Purchase of treasury stock△2△0

Total changes of items during the period△2△0△ 24,339△ 24,340

179,654

169,998-△ 695

Issuance of new shares

2-

Dividends from surplus△ 1,875△ 1,704△ 5,376△ 17,364

Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Retained earnings

Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Net loss
Purchase of treasury stock
Loss on unification of accounting period of consolidated
subsidiaries
Total changes of items during the period△2△0△ 2,403-△ 9,655△ 19,069

Balance at the end of current period

169,998

150,233

(Mil. Yen)
Fiscal year 2007

Fiscal year 2008

( from April 1, 2007
to March 31, 2008 )( from April 1, 2008
to March 31, 2009 )Valuation and translation adjustments
Valuation difference on available-for-sale securities
4,038

△ 63

Net changes of items other than shareholders' equity△ 4,102△ 35

Total changes of items during the period△ 4,102

△ 35

△ 63

△ 98

3,287

△ 12,063-

122

Net changes of items other than shareholders' equity△ 15,351△ 3,058

Total changes of items during the period△ 15,351△ 3,058

Balance at the end of current period
Total valuation and translation adjustments△ 12,063△ 14,999

7,326△ 12,127-122

Net changes of items other than shareholders' equity△ 19,454△ 3,093

Total changes of items during the period△ 19,454△ 3,093

Balance at the end of current period
Subscription rights to shares△ 12,127△ 15,098

Balance at the end of previous period--

Net changes of items other than shareholders' equity-

17

Total changes of items during the period

Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Changes of items during the period-

17

Balance at the end of current period
Minority interests-

17

Balance at the end of previous period

380

485

Net changes of items other than shareholders' equity

104

△ 41

Total changes of items during the period

104

△ 41

485

443

187,361

158,356-△ 573

Issuance of new shares

2-

Dividends from surplus△ 1,875△ 1,704

Net loss△ 5,376△ 17,364△2△0△ 2,403-

Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the end of previous period
Effect of change in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Purchase of treasury stock
Loss on unification of accounting period of consolidated
subsidiaries
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period△ 19,349△ 3,117△ 29,005△ 22,187

158,356

135,596

(4).Consolidated quartely statements of cash flows(Mil. Yen)
Fiscal year 2007

Fiscal year 2008

( from April 1, 2007
to March 31, 2008 )( from April 1, 2008
to March 31, 2009 )Net cash provided by (used in) operating activities
Income before income taxes and minority interests

2,509△ 3,263

Depreciation and amortization

6,003

4,929

Increase(decrease) in allowance for doubtful accounts

△ 101

632

Increase(decrease)in provision for retirement benefits

△ 233

△ 147

△ 5,324△ 3,438

Interest expenses

592

351

Equity in (earnings) losses of affiliates

39

171

△ 229

△5

△ 5,621

△ 26

46

3,087

Interest and dividends income

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

280

644

Decrease (increase) in notes and accounts receivable-trade

6,978△ 3,892

Decrease (increase) in inventories

3,312

2,819

Increase (decrease) in notes and accounts payable-trade△ 15,471

6,181

Other, net△ 5,897

10,975

Subtotal△ 13,116

19,019Interest and dividends income received

5,381

2,489

Interest expenses paid

△ 594

△ 346

△ 5,384△ 5,053-△ 16,838△ 13,713△ 728△ 12,443△ 80,480-

33,991△ 4,825△ 4,751542

721△ 1,556△ 758

Purchase of investment securities

△ 545

△ 750

Proceeds from sales of investment securities

9,746

1,147

Payment of partial purchase of shares of consolidated subsidiaries

△ 41

△ 71

Payments for loan receivables

△ 280

△ 105

Collection of loan receivables

28

40,151△ 99

111△ 9,475△ 10,795

Income taxes paid
Prior year's 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
Purchase of intangible assets

Other, net
Net cash provided by (used in) investment activities

(Mil. Yen)
Fiscal year 2007

Fiscal year 2008

( from April 1, 2007
to March 31, 2008 )( from April 1, 2008
to March 31, 2009 )Net cash provided by (used in) financing activities△ 5,648

△ 170

△ 724

△ 1,419

2

-

△2

△0

△ 1,875△ 1,704

105

731

Net cash provided by (used in) financing activities△ 8,141△ 2,563

Effect of exchange rate change on cash and cash equivalents△ 2,172△ 2,832

Net increase (decrease) in cash and cash equivalents△ 33,504△ 16,919

Cash and cash equivalents at beginning of period

83,32057,100Net increase in cash and cash equivalents due to the change of fiscal
year end in consolidated subsidiaries

7,284

-

Cash and cash equivalents at end of period

57,10040,180Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Proceeds from issue of stock option
Purchase of fractional shares
Cash dividends paid
Other, net

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
Fiscal year 2007 (April 1, 2007 - March 31, 2008)
Japan

N. America(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

ⅠSales&operating profit/loss－

Net Sales(1) Sales to outside customers

135,774

116,605

2,592

22,195277,167(2) Inter-segment sales

109,66810

194,318

0

303,998(303,998)

－

Total

245,443

116,616

196,911

22,195581,166(303,998)

277,167

Operating Expenses

248,546

121,213

192,795

22,266584,822(305,248)

279,573△3,103△4,597

4,116△70△3,655

1,249△2,405

108,383

25,429144,602

20,357

268,772(44,356)

224,415

Operating

IncomeandLosses(△)ⅡAssets

Fiscal year 2008 (April 1, 2008 - March 31, 2009)
Japan

N. America(1) Sales to outside customers

103,933

182,990(2) Inter-segment sales sales

120,412

Total
Operating Expenses

277,167(Units: Million Yen)
Asia

Elimination Consolidated

EuropeTotal

768

15,084

302,777－

39

166,48112

286,946(286,946)－

224,346

183,029

167,250

15,097589,723(286,946)

302,777

223,295

180,845

165,800

17,630587,572(286,204)

301,367

1,050

2,184

1,449

△ 2,532

2,151

(741)

1,409

108,739

40,49592,998

11,163

253,396(53,513)

199,882

ⅠSales&operating profit/loss

Net Sales

OperatingLosses(△)ⅡAssets(Note)

Incomeand

1. Country and area classifications are determined by geographical proximity.
2. Primary countries and areas falling under classifications other than Japan are as follow:(1) North America・・・・United States of America(2) Asia・・・・Hong Kong, Malaysia, Thailand(3) Europe・・・・Germany, Poland

302,777

c;

Overseas sales
Fiscal year 2007 (April 1, 2007 - March 31, 2008)(Units:Million Yen)

N. America
ⅠOverseas sales

181,109

Asia

Europe6,179

45,580

Other
2,975

ⅡConsolidated sales

Total
235,845
277,167

ⅢRatio of overseas sales to consolidated sales

65.3

(%)

2.2

16.5

Fiscal year 2008 (April 1, 2008 - March 31, 2009)85.1(Units:Million Yen)

N. America
ⅠOverseas sales

1.1

216,150

Asia

Europe6,879

36,372

Other
6,312

ⅡConsolidated sales

Total
265,714302,777

ⅢRatio of overseas sales to consolidated sales

71.4

(%)

(Note)

2.3

12.0

2.1

87.8

1. Country and area classifications are determined by geographical proximity.
2. Primary countries and areas falling under classifications other than Japan are as follow:(1) North America・・・・United States of America, Canada(2) Asia・・・・Hong Kong, Singapore(3) Europe・・・・Germany, England, France(4)Other・・・・Australia
3. Overseas sales stand for aggregate sales amount of outside Japan by the parent and the consolidated
subsidiaries.

6. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Fiscal year 2007

Fiscal year 2008

From April 1, 2007

From April 1, 2008

To March 31, 2008

To March 31, 2009

AmountPercent

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

Percent％％

Audiovisual Equipment

184,183

66.5

230,600

76.1

25.2

Information Equipment

64,98623.4

45,005

14.9

△30.7

Other Equipment

27,998

10.1

27,1719.0△3.0

277,167

100.0

302,777

100.0

9.2

％

％

Total

％
41,322

14.9

37,063

12.2△ 10.3

N. America

181,10965.3

216,150

71.4

19.3

Europe45,58016.5

36,372

12.0

△20.2

Asia

6,179

2.2

6,879

2.3

11.3

Other Areas

2,975

1.1

6,312

2.1

112.1

Subtotal

235,84585.1

265,714

87.8

12.7

277,167

100.0

302,777

100.0

9.2

Japan

By Region

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

Main Products
VCRs, DVD Players, DVD Recorders, Televisions, LCD Televisions,Blu-ray Disc Players

Information Equipment

Printers, Digital Still Cameras

Other Equipment

Receiver-Related Electronic Equipment

from 2008.4.1
to 2009.3.31

Page
1. Summary of Full Year Financial Statements（Consolidated）

1(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）

2(1) Sales by Equipment

2(2) Sales by Area in Equipment

3(3) Sales by Equipment in Areas

3

3. Summary of 4Q (Jan.-Mar.)Financial Statements(Consolidated)

4(1) Operating Results

4(2) Sales by Equipment

4

FUNAI ELECTRIC CO.,LTD1. Summary of Full Year Financial Statements (Consolidated)(1) Operating Results,Financial Conditions
FY2007%

Amount(Units:100million yen,%)
FY2009（Projections）

FY2008ChangeAmount3,027%%

ChangeAmount

100.0

9.2

3,400

100.0

12.3

ChangeNet Sales

2,771

100.0 △ 30.1

Operating Income

△ 24

△ 0.9

－

14

0.5

－

60

1.8

325.7

Ordinary Income
Net Income/Loss afterTax（※1）Net Income/Loss after
Tax
Total Assets

△

0

△ 0.0

－

12

0.4

－

53

1.6

332.2

△ 53

△ 1.9

－

△

5

△ 0.2

－

39

1.1

－

△ 53

△ 1.9

－

△173

△ 5.7

－

39

1.1

－

2,244

－

－

1,998

－

－

－

－

－

1,583

－

－

1,355

－

－

－

－

－

Net Assets（※）1 For the purpose of comparison the Net Income/Loss after Tax before the deduction of Income taxes for 16.8 billion
yen for prior periods is recorded.

（※） Yen－Dollars / exchange rate

FY2007100.66(Units:Yen / Dollars)
FY2009（Projections）
95.00

FY2008113.80

Average Rate in each Period(2) Profitability and Per Share Data etc.
FY2008FY2007
（％）

16.3

14.7

FY2009（Projections）
17.4

Operating Income Ratio （％）

△ 0.9

0.5

1.8

Ordinary Income Ratio （％）

△ 0.0

0.4

1.6

Shareholders' Equity Ratio （％）

70.3

67.6

－

Net Assets Per share （円）4,630.58

3,963.72－

Net Income Per Share （円）△ 157.71△ 509.33

114.39

（％）

△ 2.2

△ 8.2

－

Return On Shareholders' Equity （％）△ 3.1△ 11.9－Number of Total Employees （人）

2,628

2,590

－

Gross Profit Ratio

Return On Assets(3) Capital Expenditures,Depreciation,R&D Expenses
FY2007
AmountChangeAmount△ 9.3

49

Capital Expenditures(Units:100million yen,%)
FY2009（Projections）

FY2008Change50

Amount2.0

FY2007

FY2008Amount % to Sale Change

Amount % to Sale Change

Change△ 16.042(Units:100million yen,%)
FY2009（Projections）
Amount % to Sale Change

Depreciation Expenses

48

1.7 △ 32.4

36

1.2 △ 25.0

58

1.7

61.1

R&D

147

5.3

130

4.3 △ 11.6

142

4.2

9.2

5.0

－1－

(4) CashFlow

7(Units:100million yen)
FY2009（Projections）
－

25

△ 32

－

60

49

－

△ 222

△ 24

－

Cash flows used in investing activities

△

94

△ 107

－

Free cash flows

△ 231

△ 114

－

Cash flows provided by financing activities

△

81

△ 25

－

Effect of exchange rate changes on

△

21

△ 28

－

△ 335

△ 169

－

FY2007

FY2008Cash flows provided by operating activities△ 137

Income Before Income Taxes

Depreciation Expenses
Otherscash and cash equivalents
Net increase in cash and cash

equivalents△

2. Operating Activities (Consolidated)(1) Sales by Equipment
FY2007
Amount%

FY2008ChangeAmount

1,841

66.5 △ 33.5

2,306

VCRs

45

1.6 △ 45.1

DVD

524

Audio Visual Equipment(Units:100million yen,%)
FY2009（Projections）%%

ChangeAmount

25.2

2,663

78.3

15.5

20

0.7 △ 55.6

7

0.2

△ 65.018.9 △ 40.7

402

13.3 △ 23.3

320

9.4

△ 20.4

－

122

4.0

－

254

7.5

108.2

82

2.7 △ 68.0

6

0.2

△ 92.7

0.2

BD Players

4

Televisions

256

9.2 △ 67.4

LCD Televisions

897

32.4

PDP Televisions

76.1

Change

15.6

1,342

44.3

49.6

1,898

55.8

41.4

2

0.1 △ 97.8

0

0.0

－

0

0.0

－

Projectors

70

2.5 △ 43.5

0

0.0

－

0

0.0

－

Others

43

1.6

65.4

338

11.1

686.0

178

5.2

△ 47.3

Information Equipment

650

23.4 △ 30.3

450

14.9 △ 30.7

470

13.8

4.4

Others

280

10.1

5.6

271

9.0 △ 3.0

267

7.9

△ 1.5

Total

2,771

100.0 △ 30.1

3,027

3,400

100.0

12.3

－2－

100.0

9.2

(2) Sales by Areas in Equipment

FY2007
AmountAudio Visual Equipment
North America
EuropeAsia and Others%(Units:100million yen,%)
FY2009（Projections）

FY2008ChangeAmount

1,841

66.5 △ 33.5

2,306

1,391

50.2 △ 38.5

1,971

288

10.4 △ 15.8

3

0.1 △ 72.7%%

ChangeAmountChange

76.1

25.2

2,663

78.3

15.5

65.1

41.7

2,394

70.4

21.5

211

7.0 △ 26.7

143

4.2

△ 32.2

1

0.0 △ 66.7

0

0.0

－

159

5.8

3.9

123

4.0 △ 22.6

126

3.7

2.4

650

23.4 △ 30.3

450

14.9 △ 30.7

470

13.8

4.4

North America

403

14.5 △ 16.9

174

5.8 △ 56.8

229

6.7

31.6

Europe164

5.9 △ 49.5

149

4.9 △ 9.1

167

4.9

12.1

Asia and Others

77

2.8 △ 37.4

122

4.0

58.4

74

2.2

△ 39.3

Japan

6

0.2

－

5

0.2 △ 16.7

0

0.0

－

Others

280

10.1

5.6

271

9.0 △ 3.0

267

7.9

△ 1.5

Total

2,771

100.0 △ 30.1

3,027

3,400

100.0

12.3

Japan
Information Equipment

100.0

9.2

(3) Sales by Equipment in Areas
FY2007
Amount%(Units:100million yen,%)
FY2009（Projections）

FY2008ChangeAmount

1,811

65.3 △ 34.6

2,161

Audio Visual Equipment

1,391

50.2 △ 38.5

1,971

Information Equipment403

14.5 △ 16.9

Others17

Europe%%ChangeAmount

71.4

19.3

2,623

77.1

21.4

65.1

41.7

2,394

70.4

21.5

174

5.8 △ 56.8

229

6.7

31.6

0.6 △ 26.1

16

0.5 △ 5.9

0

0.0

－

456

16.5 △ 32.3

364

12.0 △ 20.2

310

9.1

△ 14.8

Audio Visual Equipment288

10.4 △ 15.8

211

7.0 △ 26.7

143

4.2

△ 32.2

Information Equipment

164

5.9 △ 49.5

149

4.9 △ 9.1

167

4.9

12.1

4

0.2 △ 33.3

4

0.1

0.0

0

0.0

－

91

3.3 △ 34.5

132

4.4

45.1

74

2.2

△ 43.90.0 △ 66.7

0

0.0

－

74

2.2

△ 39.3

0

0.0

－

393

11.6

6.2

126

3.7

2.4

0

0.0

－

267

7.9

10.3

3,400

100.0

12.3

North America

OthersAsia and Others
Audio Visual Equipment
Information Equipment
OthersJapan
Audio Visual Equipment
Information Equipment
OthersTotal

3

0.1 △ 72.7

77

2.8 △ 37.4

11

0.4

413

14.9

159

5.8

6

0.2

248

8.9

2,771

120.0
7.7
3.9
－
7.4

100.0 △ 30.1

－3－

1
122

4.0

58.4

9

0.4 △ 18.2

370

12.2 △ 10.3

123

4.0 △ 22.6

5

0.2 △ 16.7242

8.0 △ 2.4

3,027

100.0

9.2

Change3．Summary of Fourth Quarter (Jan.-Mar.) Financial Statements (Consolidated)(1) Operating Results(Units:100million yen,%)Amount

FY2007

FY20084Q

4Q%

Change%AmountChange513

100.0△ 54.9

627

100.0

22.2

Operating Income

△ 36

△ 7.0

－

△ 18

△ 3.0

－

Net Income△ 58△ 11.3

－

△ 11

△ 1.9

－

Net Income/Loss after Tax

△ 23

△ 4.5

－

△ 13

△ 2.1

－

Net Sales（※） Yen－Dollars / exchange rate

(Units:Yen / Dollars)

Average Rate in each Period

FY2007

FY20084Q

4Q

103.7995.19(2) Sales by Equipment(Units:100million yen,%)Amount

FY2007

FY20084Q

4Q%

ChangeAmount%Change340

66.3△ 60.4

490

78.2

44.1

VCRs

8

1.6

△ 57.94

0.6△ 50.0

DVD

95

18.5

△ 64.858

9.3△ 38.9BD Players

3

0.6

－

14

2.2

366.7

Televisions

45

8.8

△ 81.56

1.0△ 86.7

LCD Televisions

171

33.3

△ 30.8

313

49.9

83.0

Others

18

3.5

100.0

95

15.2

427.8

85

16.6

△ 59.566

10.5△ 22.4

Audio Visual Equipment

Information Equipment
Others

88

17.1

27.5

71

11.3

△ 19.3

Total

513

100.0

△ 54.9

627

100.0

22.2

－4－

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS DEPARTMENT
7-7-1 Nakagaito Daito city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-874-8027