FUNAI ELECTRIC.,LTD.
Presentation of Operating Results (Consolidated)in 2nd Quarter (Apr.-Sep.) of FY 2008

November 13, 2008

1Ⅰ

Outline of 2nd Quarter (Apr.-Sep.) of FY 2008
Operating Results (Consolidated)
１ Summary of Operating Results(Apr.-Sep.)
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 Projection of Fiscal Year ending March 20092１Summary of Operating Results (Apr.-Sep.)（100 million yen）

Current
2Q

Changes from
Previous 2Q

ChangesfromProjection△7.5%＋0.5%＋108.8%＋30.9%

Previous2Q

Projection

1,56320

1,440
33

1,446
43

Margin

(1.3%)(2.3%)(3.0%)+16 (※1)

Ordinary Income

504359＋18.6%＋39.3%

Margin

(3.2%)(3.0%)(4.1%)△4233

47ー＋43.5%(△2.7%)(2.3%)(3.3%)△180 (※2)△42△139△121ー(△2.7%)(△9.7%)(△8.4%)Net Sales
Operating Income

Net Income after tax※Margin

Net Income after tax
MarginAverage USD - JPY
Exchange Rate

JPY119.19

JPY100.00

ーJPY106.22（※1） Interest receivables +17、 Forex gain ＋1、 Others △2（※2） Income taxes for prior periods △168、Others△12※ （before deduction of income taxes for 16.8 bill.yen for prior periods)

3

２

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

1,563(100 million yen)

1,446Comparison to Previous 2Q

981
1,037452

AV Equipment： ＋56 （＋ 5.8％）

Information Equipment： △175 （△38.7％）

Others：total： △117 （△ 7.5％）＋ 2 （＋ 1.4％）277

130

132

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)
4

３

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

981

1,037
(100million yen)

319

662

Previous 2Q(Apr.-Sep.)

Comparison to Previous 2Q

468

569

DVD related Equipment： ＋149（＋46.7％）

Television related Equipment： △ 93（△14.0％）： ＋ 56（＋ 5.8％）

Total

Current 2Q(Apr.-Sep.)
5４

Sales of DVD related Equipment

VideoDVD Recorder related Equipment
DVD Player related Equipment(100million yen)Blu-ray disc Player
Digital STB

468
11115

31925

・ Player related equip.tracking on the shrinkage of market.
・ Recorder related equip.plateauing out.

Blu-ray disc Player ・Commercially launching in a full-scalemanner from April.

Digital STB

・Better than expected sales

124
76

：

△14 （△56.0％）

DVD Recorder related Equipment ：＋5 （＋ 4.5％）

DVD Player related Equipment：△60 （△32.6％）

Blu-ray disc Player：＋76 （−）： ＋142 （−）

Video

142
Digital STB

Previous 2Q(Apr.-Sep.)(100million yen)Comparison to Previous 2Q

110184DVD Recorders

DVD Players

Current 2Q(Apr.-Sep.)

Total： ＋149（46.7％）
6

５

Sales of Television related Equipment
CRT TVLCD TV・Largely dropped due to the ongoing

CRT TV

Othersreplacement with LCD TV in the market.

(100million yen)141

・More weight on larger size contributed toLCD TV

662

sales gain.

569

・Withdraw of projector.

Others57(100million yen)Comparison to Previous 2Q

450

498

71
Previous 2Q(Apr.-Sep.)

CRT TＶ： △84（△59.6％）

LCD TV： ＋48（＋10.7％）

Others： △57（△80.3％）

Total： △93（△14.0％）

14Current 2Q(Apr.-Sep.)

7６

Geographic Breakdown of Sales(100million yen)

North America

1,563

1,446

Europe・US subprime loan issues triggered off private consumption
decline.
・Aggressively marketing Blu-ray disc player and digital setbox
in US.
・Information equip. falling off due to strategic change of productin OEM clients.

1,024(65.5%)(69.1%)

289(100million yen)

1,00061
189

195
72
179

Previous 2Q(Apr.-Sep.)

Current 2Q(Apr.-Sep.)

Comparison to Previous 2Q
North America： △24（△ 2.3％）

Europe： △94（△32.6％）

Asia & Others： ＋11（＋18.0％）

Japan： △10（△ 5.0％）

Total： △117（△7.5％）
8

７Financial Conditions（100 million yen）

2,839

Cash / Deposit

922

Accounts
Receivables

AssetsComparison to 2007/9
2, 244680

424

Inventories

440

2,444
500

Assets422・Cash / Deposit△ 422

・Accounts Receivables△・Inventories＋ 243

・Fixed Assets and Others

△ 214

268
350

683

Fixed Assets
and Others

1,053

946

839

Trade Payables

534

258
403

527

Accounts Payables
and Others

537

Liabilities
andNet Assets

454
1,583

Net Assets（100 million yen）

1,463

2

Liabilities
・Trade Payables△・Accounts Payables
and Others△ 8371,768

Net Assets
2,244

2,444

2,839
2007/92008/3

・Net Assets△ 305（Shareholders’ Equity Ratio 59.6％）

2008/99８

Changes of Inventories
Finished products
Work in process

683（100 million yen）

564

（100 million yen）

440
350
308

Comparison to 2007/9396

557
Finished products＋249Work in process

△6211

132

139

168

126

2007/92008/3

2008/6

2008/91.7months

2.0months

2.8months

2.4months〈Inventories Turnover〉
10Capital Expenditures, Depreciation Expenseand R&D Expenditures

９2Q
CapitalExpenditures

R&DExpendituresComparison to Previous 2Q（100 million yen）
160

Depreciation
ExpenseFull Year△24△10Capital
Expenditures

R&D
Expenditures（100 million yen）
160

10140

140120120

100100808060

60

14740

20

Depreciation
Expense77407367203728

13

154

48

4957

1800

2007/9 2008/9

2007/9 2008/9

2007/9 2008/9

2008/3 2009/3

2008/3 2009/3

2008/3 2009/3（Projection）(Projection）（Projection）

11

Forecast of Operating Results in FY2008

10 ending March 2009（100 million yen）

Results of FY2007 Forecast of FY2008

Net Sales
Operating Income

2,771△243,40060

Margin(△0.9%)(1.8%)

Ordinary Income△080

Margin(△0.0%)(2.4%)△5358(△1.9%)(1.7%)△53△114(△1.9%)(△3.4%)Net Income after tax※Margin

Net Income after tax
MarginAverage USD - JPY
Exchange Rate

JPY113.80

Changes from
Previous Year＋ 22.7%ーーーー

JPY100.00（Ｕｎｉｔ：ｍillion yen）

Results ofFY2007※ （before deduction of income taxes for 16.8 bill.yen for prior periods)
Audio & Visual
Information
Others

Total

1,841
650
280
2,771

Forecast ofFY2008

2,623484293
3,400

Change＋782△166＋13＋629

12Ⅱ

Ｓｕｐｐｌｅｍｅｎｔａｌ Ｄａｔa
１ Quarterly Operating Summary of FY2007,2008
２ Quarterly Changes of Sales Amount by Equipment

13１

Quarterly Operating Summary of FY 2007, 2008（100 million yen）

FY 2007

Current 2Q

1Q2Q

Net Sales

773790695513594852

Operating Income

119△7△36933(1.1%) (△1.1%) (△7.0%)(1.7%)(3.9%)△584415(1.1%) (△11.3%)(7.5%)(1.8%)△23△13716(1.8%) (△4.5%)(△23.2%)(2.0%)

MarginOrdinary Income
MarginNet Income After Tax
Margin

(1.5%)3Q

446(5.8%)(0.8%)

13△56(1.7%) (△7.1%)

4Q

7121Q2Q△18 (※1)（※1） Interest receivables + 8、 Forex gain △23、 Others △314

Quarterly Changes of Sales Amount by Equipment

２DVD related Equipment（100 million yen）

Television related Equipment

Information Equipment

Others

1000

800

773

790

166

153

200

0

695
148

600

400

852

323

339

594
513
120

188
340

372
212

280

220

229

113

85

107

170

240

72

58

62

88

70

62

1Q
(07/6)

2Q(07/9)

3Q(07/12)4Q(08/3)

1Q(08/6)

2Q(08/9)
15Disclaimer•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-visualdevices 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.

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