From April
1, 2010To December 31, 2010

January 31, 2011
Funai Electric Co., Ltd.

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

Current Year Third Quarter

From April 1, 2009
To December 31, 2009

From April 1, 2010
To December 31, 2010

AmountAmountPercent

Million yen%

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

Million yen％

Net Sales

248,073100.0

230,024

100.0

△7.3

Operating Income

11,546

4.7

4,043

1.8

△65.0

Ordinary Income

12,042

4.9

4,066

1.8

△66.2

12,009

4.8

4,221

1.8

△64.8

9,156

3.7

2,189

1.0

△76.1

Net Income before Taxes andOther Adjustments

Net Income after Tax

Net Income per Share

268.5764.21

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 9-Month Period ended December 31, 2010
January 31, 2011

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; February 4, 2011
Scheduled date of Commencement of Annual Dividend Payment –Quarterly Financial Results Supplementation : Yes
Quarterly Financial Results Seminar : Yes
1. Third Quarter Consolidated Results for the Period Ending March 2011 (April 1, 2010 – December 31, 2010)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yenrd

3 Quarter FY2010
3rd Quarter FY2009

%

△7.3
3.3

230,024
248,073%

Million yen

4,043 △65.0
11,546
252.8%

Million yen%

4,066 △66.2
12,042403.2

2,189 △76.1
9,156−

Shareholders’Equity Ratio

Net Assets
Per Share

Net Income
Per Shareon a Fully
Diluted BasisNet Income
Per Share
3rd Quarter FY2010
3rd Quarter FY2009

Million yen

Yen

Yen

64.21
268.57

63.87
266.64(2) Consolidated Financial Position
Net Assets

Total Assets
Million yen

Million yen

%

Yen

rd

203,629
132,96264.8
204,057
142,779
69.6(Reference) Shareholders’ Equity
3rd Quarter FY2010 ended December 31, 2 010 131,928 million yen
Fiscal Year 2009 ended March 31, 2010 141,991 million yen

3,867.74
4,164.86

3 Quarter FY2010
Fiscal Year End 2009

2. Dividends
Annual Dividend per Share

Corresponding Period

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

1 Quarter
yen
−

nd

2 Quarteryen

3rd Quarter

0.00

−

Year end

Annual

yen
−

yen

40.00

40.00

yen

−

40.00

40.00

0.00

(Note) Revision of Annual Dividends Forecast in this 3rd Quarter : No

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

Net Sales
Full Year

Million yen

Operating Income Ordinary Income%

295,000 △6.3

Million yen%

1,000 △91.0

Million yen%

1,000 △91.4

Net Income
Million yen

Net Income
Per Share%Yen△1,800 −△52.77

Note:
Revision of Forecast of Consolidated Results for the Six month period or the Full Year in this 3rd Quarter : Yes

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 3rd 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: Yes
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 December 31, 2010; 36,121,696 shares
as of March 31, 2010; 36,104,196 shares(2)Number of shares of treasury stock as of December 31, 2010; 2,011,607 shares
as of March 31, 2010; 2,011,531 shares(3)The Average number in the quarter of outstanding shares on December 31, 2010; 34,096,525 shareson December 31, 2009; 34,092,763 shares※ 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 third quarter (April to December) of the consolidated fiscal year, the U.S. market, which is one of Funai
Electric’s key markets, continued to moderately grow supported by a series of policy effect. In the October toDecember period, in particular, private consumption has been firm due mainly to asset effect in the stock market
thanks to FRB’s quantitative easing. However, opacity continued to remain unable to wipe away as like seen in thecontinuing sluggish housing market and high unemployment rate.
In the consumer electronics market, the growth rate of LCD televisions (one of Funai Electric’s main product line)
was high in Japan and China supported by the Government subsidy to consumers and other emerging countries ofwhich economic growth has been high. On the other hand, consumers in U.S. or Western Europe of which
penetration ratio is already high in existing products have been cautious when it comes to spending and shunningpurchase of high end products like LED or 3D televisions.
As a result of the above factors, the Group posted net sales of JPY230,024 million (a fall of 7.3% from the same
period last year) for the third quarter of the consolidated fiscal year.
On the profit side, the Group posted operating income of JPY4,043 million (a fall of 65.0% from the same period
last year), ordinary income of JPY4,066 million (a fall of 66.2% from the same period last year), and a quarterly net
income of JPY2,189 million (a fall of 76.1% from the same period last year).

Segment conditions by location were as follows:i) Japan
In addition to the growth in sales of LCD televisions as a result of the positive effect of the “Eco-Point” program,sales of antennas and related devices increased as a result of the transition to digital terrestrial broadcasting.
Moreover, robust sales of Blu-Ray disc recorders introduced by the Group in the third quarter of the previous
fiscal year, and the growth in sales of information equipment contributed to the Group posting third quarter net
sales of JPY120,271 million (a 44.8% increase from the same period last year) and third quarter operating
income of JPY6,952 million (a 22.2% increase from the same period last year) for the Japan market.
ii) North America
No sales relating to TV set-top boxes1 (STBs) targeted for the U.S. market was generated during the quarter as
production for such devices were halted in June 2009. In addition to this, sales of DVD-related devices fell ascompared to same period last year as demand for DVD players and Blu-Ray Disc players remained weak. Also,
the decline in consumer demand for LCD televisions (the Group’s core product in the market), and the resultant
fall in the unit price for such products resulted in the Group posting third quarter net sales of JPY103,286 (a fallof 35.1% from the same period last year) and third quarter operating loss of JPY4,103 (as compared to a
JPY4,567 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 third quarter net sales of JPY1,540 million (a248.2% increase from the same period last year) and third quarter operating income of JPY2,408 million(a fallof 55.5% from the same period last year) in the Asia (excluding Japan) market.
iv) Europe
Sales of LCD televisions were almost flat, and DVD related devices declined due mainly from grim economic
situation. As a result, the Group posted third quarter net sales of JPY4,925 million (a fall of 10.4% from thesame period last year) and third quarter operating loss of JPY907 million (as compared to a JPY902 million
operating loss in the same period last year) in the European market.

Sales by Product Segment were as follows:i) Audio-Visual Equipment
In the audio-visual equipment segment, the Group was able to increase the volume of LCD televisions unit soldbut due to intense price competition in the market, sales fell. 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 third quarter ofthe previous fiscal year, sales fell significantly from the same period last year. This was mainly because of thelack of sales generated by TV STBs in the US market after the Group’s decisions to halt production for suchdevices in June 2009 and the marked decline in sales of DVD players and Blu-Ray disc players. Consequently,
third quarter net sales for this product segment fell to JPY151,170 million (a fall of 19.1% from the same period
last year).

ii) Information Equipment
In the information equipment sector, an increase in orders for printers and other factors resulted in the Groupposting third quarter net sales of JPY48,558 million (a 14.6% increase from the same period last year).
iii) Others Products
Sales of other products that are not included in the above categories increased as strong demand for antennas
and related devices as a result of the transition to digital terrestrial broadcasting took hold. Consequently, theGroup posted sales of JPY30,294 million (a 59.9% increase from the same period last year) in this productsegment.
Note: As of the first quarter of the consolidated fiscal year, sales of antennas that were previously categorized underthe “Audio-Visual Equipment” segment has been transferred to the “Other Products” segment. Further, prior year
sales figures for “Audio-Visual Equipment” include the sale of antennas. For reference purposes, sales of antennas
during the third quarter of the previous fiscal year totaled JPY2,791 million.

(2) Qualitative Information Relating to Consolidated Financial Position
The financial condition of the Group at the end of the third quarter of consolidated fiscal year is as follows:
Total assets decreased by JPY427 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to an increase of JPY7,221 million and JPY14,213 million for notes and accounts receivable-trade andgoods and products, respectively, and a decrease of JPY23,729 million in cash and cash equivalents.
Total liabilities increased by JPY9,389 million as compared to the end of the previous consolidated fiscal year. Thiswas mainly due to the JPY7,094 million increases in short-term loans payable.
Net assets fell by JPY9,817 million as compared to the end of the previous consolidated fiscal year. This was
mainly due to the JPY11,154 million decreases in the foreign currency translation adjustment account.
(3) Qualitative Information Relating to Consolidated Performance Forecasts:
Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on January 31,
2011 for information regarding earnings forecasts.
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 Information(1) Summary of Changes to Major Subsidiaries
None to report with the exception of the fact that FUNAI ELECTRIC (POLSKA) Sp. z o.o., a consolidated
subsidiary, changed its name to FUNAI ELECTRIC EUROPE Sp. z o.o. as of July 1, 2010.
(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 third 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.

3.

Change in the Rate Applied for Currency Exchange Conversions
In the past, the Group applied TTS*1 or TTB*2 rates when carrying out foreign currency exchange conversions.
However, as of the second quarter of the consolidated fiscal year, the Group has decided to use TTM*3 rates
instead. This change to utilize TTM rates across all exchange conversions was made in order to ensure clarity
in every income category.
Due to this change, net sales, operating income and ordinary income figures for the third quarter year-to-dateconsolidated period has increased by JPY663 million, JPY830 million and JPY336 million, respectively, as
compared to the results if the rates utilized in the past were applied for exchange conversions. Further, the third
quarter consolidated net income before taxes and other adjustments increased by JPY336 million as comparedto the results if the rates utilized in the past were applied for exchange conversions.
Please note that the new rates were not applied for the first quarter year-to-date consolidated period as theGroup’s systems were not updated until the second quarter.
*1 TTS : telegraphic transfer selling rate
*2 TTB : telegraphic transfer buying rate
*3 TTM : telegraphic transfer middle rate(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 the income
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)
3rd Quarter FY2010(As of December 31, 2010)

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

62,31586,045

Notes and accounts receivable-trade

42,37535,154Merchandise and finished goods

35,063

20,850Work in process

1,812

1,510

Raw materials and supplies

18,114

16,057

Others

8,360

7,717

Allowance for doubtful accounts

△ 133

△ 179

Total current assets

167,908

167,155

Property, plant and equipment

16,737

15,654

Intangible assets

3,793

4,874

Others15,495

17,148

Allowance for doubtful accounts

△ 304

△ 775

Total investments and other assets

15,19016,373

Total noncurrent assets

35,72036,902

203,629

204,057

Notes and accounts Payable-trade32,811

31,305

Short-term loans payable

13,433

6,338

Income taxes payable

1,670

1,799

Provision

1,408

2,306

Others17,445

14,457

Total current liabilities

66,76856,208

166

566

Provision

2,402

2,428

Others

1,329

2,073

Total noncurrent liabilities

3,898

5,069

70,667

61,277

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Long-term loans receivable

TOTAL LIABILITIES(Mil. Yen)
3rd Quarter FY2010(As of December 31, 2010)

Fiscal year 2009
(As of March 31, 2010)

NET ASSETS;
Shareholders' equity
Capital stock

31,29831,280Capital surplus

33,26333,245Retained earnings

120,098

119,272

Treasury stock△ 24,341△ 24,340

160,318

159,457

701

470

Foreign currency translation adjestment△ 29,090△ 17,936

Total valuation and translation adjestments△ 28,389△ 17,465

Subscription rights to shares

80

62

Minority interests

953

726

TOTAL NET ASSET

132,962

142,779

TOTAL LIABILITIES AND NET ASSETS

203,629

204,057

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

(2).Concolidated quartely statements of income(Mil. Yen)
3rd Quarter FY2009

3rd Quarter FY2010( from April 1, 2009
to December 31, 2009 )248,073( from April 1, 2010
to December 31, 2010 )
230,024

Cost of sales

200,334

195,619

Gross profit

47,73834,405

Selling, general and administrative expenses

36,19230,361

Operating income

11,546

4,043

Interest income

584

315

Dividends income

33

26

Equity in earnings of affiliates

-

13

Other

287

183

Total non-operating income

904

539

Interest expenses

5682

Equity in losses of affiliates

31-

Foreign exchange loss

113

347

Other

207

87

Total non-operating expenses

408

516

12,042

4,066

Gain on sales of noncurrent assets

01

Profit on Sales of Investment Securities

34

282

Other

7

25

Total extraordinary income

41

310

Loss on disposal of noncurrent assets

59

20

Liquidation loss on affiliated company

-

88

Other

15

45

Total extraordinary losses

75

155

Income before income taxes and minority interests

12,0094,221

Income taxes

2,637

1,778

Loss before minority interests

-

2,443

Minority interests in income

215

253

9,156

2,189

Net sales

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Net income/ loss

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

3rd Quarter FY2010( from April 1, 2009
to December 31, 2009 )( from April 1, 2010
to December 31, 2010 )Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

12,0094,221

Depreciation and amortization

4,271

4,670

Increase (decrease) in allowance for doubtful accounts

△ 830

△ 38

Increase (decrease)in provision for retirement benefits

48

△ 13

△ 617

△ 342

Interest expenses

5682

Equity in (earnings) losses of affiliates

31

△ 13

Loss on sales of property, plant and equipment

1

6

△ 34

△ 282

4

−

Increase in notes and accounts receivable-trade△ 6,523△ 12,586

Increase in inventories△ 19,103△ 21,608

Increase in notes and accounts payable-trade

15,310

7,622

Other, net

5,515

3,704

Subtotal

10,138△ 14,577

Interest and dividends income

Gain on sales of investment securities
Loss on valuation of investment securities

Interest and dividends income received

1,109

377

Interest expenses paid

△ 56

△ 82

Income taxes paid

△ 2,518△ 2,213

Income taxes refund

1,693

45

Net cash provided by (used in) operating activities

10,366△ 16,450△ 80,957△ 63,536

91,312

70,120△ 2,868△ 5,480

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

834

Purchase of intangible assets

△ 661

△ 57

Purchase of investment securities

△ 408

△ 56

Proceeds from sales of investment securities

510−

Collection of loan receivables

69

22

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

205

△ 150

7,211

895

△ 8,208

8,263

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Increase of long-term loans payable

600−

Repayment of long-term loans payable

△ 566

△ 399

−

28

△ 1,363△ 1,363

△ 88

△ 174

Proceeds from issue of stock option
Cash dividends paid
Other, net△ 9,627

6,353

681

△ 1,805

Net increase (decrease) in cash and cash equivalents

8,632△ 11,006

Cash and cash equivalents at beginning of period

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

40,18034,063

Decrease in cash and cash equivalents due to exclusion from consolidation

−

△ 59

Increase due to merger of non-consolidated subsidiary367−

49,18022,996

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 Third Quarter (April 1, 2009 - December 31, 2009)(Units: Million Yen)

Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

83,049159,082

442

5,498

248,073−

248,073

Inter-segment sales

144,87327

153,8992

298,802(298,802)

−

Total

227,923

159,109154,341

5,500

546,876(298,802)

248,073

5,688

4,567

5,417

△902

14,770(3,224)

11,546Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales

Previous Third Quarter (April 1, 2009 - December 31, 2009)
N. America
Overseas sales

180,227(Units: Million Yen)
Asia

Europe6,365

23,872

Other
7,122

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

Total
217,588
248,073

72.6

2.6

9.6

2.9

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

Current Third Quarter (April 1, 2010 - December 31, 2010)(Units: Million Yen)

Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

120,271

103,286

1,540

4,925

230,024−230,024

Inter-segment sales

110,5843

164,2994

274,891(274,891)

−

Total

230,855

103,289

165,8394,929

504,915(274,891)

230,024Net Sales

Operating

Incomeand

6,952△4,103
2,408
△907
4,349
(305)
4,043
Losses(△)
Note:
1. The negative JPY305 million adjustment amount under segment income includes items such as the
JPY11 million relating to the cancellation of inter-segment transactions, JPY745 million of overall
Group expenses that are not apportioned to each reporting segment, and the JPY428 million
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.

(Change in the Rate Applied for Currency Exchange Conversions)
In the past, the Group applied TTS*1 or TTB*2 rates when carrying out foreign currency
exchange conversions. However, as of the second quarter of the consolidated fiscal year, theGroup has decided to use TTM*3 rates instead. This change to utilize TTM rates across all
exchange conversions was made in order to ensure clarity in every income category.
As compared to the results if the rates utilized in the past were applied for exchange conversions, thesales and segment income for “Japan” has increased by JPY663 million and JPY830 million for the third
quarter year-to-date consolidated fiscal period.
Please note that the new rates were not applied for the first quarter year-to-date consolidated
period as the Group’s systems were not updated until the second quarter.

(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 Third Quarter

Current Year Third Quarter

From April 1, 2009

From April 1,2010

To December 31, 2009

To December 31, 2010

AmountAmountPercent

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

Percent

Percent％％

Audiovisual Equipment

186,77275.3

151,170

65.7

△19.1

Information Equipment

42,361

17.1

48,558

21.1

14.6

Other Equipment

18,9397.6

30,29413.2

59.9

248,073100.0

230,024

100.0

△7.3

％

％

Total

％
Japan

By Region

30,485

12.3

68,288

29.7

124.0

N. America

180,22772.6

124,011

53.9

△31.2

Europe23,872

9.6

19,819

8.6

△17.0

Asia

6,365

2.6

7,106

3.1

11.7

Other Areas

7,122

2.9

10,797

4.7

51.6

Subtotal

217,588

87.7

161,735

70.3

△25.7

248,073100.0

230,024

100.0

△7.3

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 3rd quarter in FY2009
was 2,791mil.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

74,95879,12575,939−Gross Profit

13,02012,0689,316−

Operating Income

2,518

2,068

△542

−

Ordinary Income

1,284

3,491

△710

−

Quarterly Net Income Before
Taxes and Other Adjustments

1,196

3,462

△437

−

433

3,452

△1,696−

Quarterly Net Income/Loss

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

12.71

101.26△49.75−−

Fully Diluted Quarterly Net
Income per Share

12.62

100.76−−−

Million Yen

Million Yen

Million Yen

Total Assets

217,597

213,473

203,629−

Net Assets

136,964

136,608

132,962

−

Yen

Yen

Yen

3,978.83

3,867.74−

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−

Million Yen

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 2010.12.31

Page
1. Summary of 3Q (April to December) 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 Area in Equipment

3(3) Sales by Equipment in Areas3

3. 3Q (October to December) Operating Activities (Consolidated)(1) Operating Results

4(2) Sales by Equipment

4

FUNAI ELECTRIC CO.,LTD1. Summary of Third Quarter Operating Results (Consolidated)(1) Operating Results, Financial Conditions（Units：100million yen, %）FY2009Full-Year

3Q
AmountNet Sales%

2,480 100.0

Change Amount
3.3

%

3Q
Change Amount

3,149 100.0

4.0%

FY2010Full-Year (Projections)
Change Amount

2,300 100.0 △ 7.3%

Change2,950 100.0 △ 6.3

Operating Income

115

4.7

252.8

111

3.5

690.9

40

1.8 △ 65.0

10

0.3 △ 91.0

Ordinary Income

120

4.9

403.2

116

3.7

852.9

40

1.8 △ 66.2

Net Income afterTax

91

3.7

ー

103

3.3

−

21

1.0 △ 76.1

10

0.3 △ 91.4

Total Assets

2,166

−

−

2,040

−

−

2,036

−

−

−

−

−

Net Assets

1,398

−

−

1,427

−

−

1,329

−

−

−

−

−

△ 18 △ 0.6−（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）

FY2009Full-Year

3Q
93.22

Average Rate in each Period

3Q

FY2010Full-Year (Projections)
86.17

92.60

85.38

(2) Profitability and Per Share Data etc.
FY20093Q

3Q

Full-Year

FY2010Full-Year (Projections)

(%)

19.2

18.2

15.0

13.7

Operating Income Ratio (%)

4.7

3.5

1.8

0.3

Ordinary Income Ratio (%)

4.9

3.7

1.8

0.3

Shareholders' Equity Ratio (%)

64.2

69.6

64.8

−

Net Assets Per Share (Yen)

4,080.52

4,164.86

3,867.74−

Net Income Per Share (Yen)

268.57302.9764.21△ 52.77

（％）

4.3

5.1

1.0

−

Return On Shareholders' Equity （％）

6.8

7.5

1.6

−

Gross Profit Ratio

Return On Asset(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY2009Full-Year

3Q
AmountCapital Expenditures

Change33

Amount3Q
ChangeAmount43 △ 14.0

10.0

Change54

FY20093Q

3Q

Full-Year

FY2010Full-Year (Projections)

Depreciation Expenses

31

1.3

14.8

43

1.4

19.4

35

1.5

12.9

R&D

96

3.9 △ 2.0

134

4.3

3.1

95

4.1 △ 1.0

−1−Change Amount% to Sales

58.1

FY2010Full-Year (Projections)% to Sales% to Sales

Change68

63.6

AmountChange AmountAmountChange Amount% to Sales

Change

47

1.6

9.3

140

4.7

4.5

(4) Cash Flow
（Units：100million yen）

FY2009Full-Year (Projections)

3Q

3Q

FY2010Full-Year (Projections)

Cash flows provided by operating activities

103

36

△ 164

−

Income Before Income Taxes

120

108

42

−

Depreciation Expenses

42

57

46

−

△ 129

△ 59

OthersCash flows used in investing activities

72

Free Cash flows

175

△

△ 96

Cash flows provided by financing activities

Effect of exchange rate changes△

6

on cash and cash equivalents
Net increase in cash andcash equivalents

△

86

△ 252

−

27

8

−

9

△ 156

−

78

63

−

4

△ 18

−

64

△ 110

−

2. Operating Activities (Consolidated)(1) Sales by Equipment（Units：100million yen, %）FY20093Q
AmountAudio Visual Equipment

1,867

%
75.3

Full-Year
Change Amount
2.8

2,335

%
74.2

3Q
Change Amount%

FY2010Full-Year (Projections)
Change Amount%

Change1.3

1,512

65.7 △ 19.1

1,984

67.3 △ 15.0

DVD

331

13.4 △ 3.8

386

12.3 △ 4.0

205

8.9 △ 38.1

267

9.1 △ 30.8

Blu-ray Disc

135

5.5

25.0

189

6.0

54.9

246

10.7

82.2

354

12.0

1,246

50.2

21.1

1,594

50.6

18.8

1,030

44.8 △ 17.3

1,324

LCD Televisions

87.3

44.9 △ 16.9

155

6.2 △ 53.7

166

5.3 △ 62.3

31

1.3 △ 80.039

1.3 △ 76.5

Information Equipment

424

17.1

10.3

546

17.3

21.4

485

21.1

14.6

560

19.0

2.6

Others189

7.6 △ 5.3268

8.5 △ 1.5

303

13.2

59.9

406

13.7

51.5

OthersTotal

2,480 100.0

3.3

3,149 100.0

4.02,300 100.0 △ 7.3

2,950 100.0 △ 6.3

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−

(2) Sales by Areas in Equipment（Units：100million yen, %）FY20093Q
AmountAudio Visual Equipment
North America
Europe%Full-Year
Change Amount%

3Q
Change Amount%

FY2010Full-Year (Projections)
Change Amount%

Change

1,867

75.3

2.8

2,335

74.2

1.3

1,512

65.7 △ 19.1

1,984

67.3 △ 15.0

1,649

66.5

6.7

1,970

62.5 △ 0.1

1,004

43.6 △ 39.1

1,289

43.7 △ 34.6

3.8 △ 48.4125

4.0 △ 40.8

66

2.9 △ 30.588

3.0 △ 29.6

95
6

0.3

500.0

18

0.6

−

24

1.0

300.0

37

1.3

105.6

117

4.7

36.0

222

7.1

80.5

418

18.2

257.3

570

19.3

156.8

424

17.1

10.3

546

17.3

21.4

485

21.1

14.6

560

19.0

2.6

North America

145

5.8 △ 5.8

185

5.9

6.3

188

8.2

29.7

226

7.7

22.2

Europe

143

5.8

18.2

177

5.6

18.8

132

5.7 △ 7.7154

5.2 △ 13.0

Asia and Others

125

5.1

16.8

168

5.3

37.7

151

6.6

20.8

166

5.6 △ 1.2

Japan

11

0.4

450.0

16

0.5

220.0

14

0.6

27.3

14

0.5 △ 12.5

189

7.6 △ 5.3268

8.5 △ 1.5

303

13.2

59.9

406

13.7

Asia and Others
Japan
Information Equipment

OthersTotal

2,480 100.0

3.3

3,149 100.0

4.02,300 100.0 △ 7.3

51.5

2,950 100.0 △ 6.3(3) Sales by Equipment in Areas（Units：100million yen, %）FY20093Q
Amount%Full-Year
Change Amount%

3Q
Change Amount%

FY2010Full-Year (Projections)
Change Amount%

Change

1,802

72.6

5.3

2,164

68.7

0.1

1,240

53.9 △ 31.2

1,574

53.4 △ 27.3

Audio Visual Equipment

1,649

66.5

6.7

1,970

62.5 △ 0.1

1,004

43.6 △ 39.1

1,289

43.7 △ 34.6

Information Equipment145

5.8 △ 5.8

185

8

0.3 △ 33.3

239

Audio Visual Equipment

Information Equipment

North America

OthersEuropeOthersAsia and Others

6.3

188

8.2

29.7

226

7.7

22.2

9

0.3 △ 43.8

48

2.1

500.0

59

2.0

555.6

9.6 △ 22.7305

9.7 △ 16.2

198

8.6 △ 17.0

243

8.2 △ 20.395

3.8 △ 48.4125

4.0 △ 40.8

66

2.9 △ 30.588

3.0 △ 29.6

143

5.8

18.2

177

5.6

18.8

132

5.7 △ 7.7154

5.2 △ 13.0

0.0 △ 66.7

3

0.1 △ 25.0

0

0.0

−

1

0.0 △ 66.7

179

7.8

33.6

206

1
134

5.5

18.6

196

5.9

6.2

48.5

7.0

5.1
105.6

Audio Visual Equipment

6

0.3

500.0

18

0.6

−

24

1.0

300.0

37

1.3

Information Equipment

125

5.1

16.8

168

5.3

37.7

151

6.6

20.8

166

5.6 △ 1.2

0.1 △ 40.0

10

0.3

11.1

4

0.2

33.3

3

0.1 △ 70.0

305

12.3

13.8

484

15.4

30.5

683

29.7

124.0

927

31.4

91.5

Audio Visual Equipment

117

4.7

36.0

222

7.1

80.5

418

18.2

257.3

570

19.3

156.8

Information Equipment

11

0.4

450.0

16

0.5

220.0

14

0.6

27.3

14

0.5 △ 12.5

Others177

7.2 △ 1.7

246

7.8

1.7

251

10.9

41.8

343

11.6

3,149 100.0

4.0

Others
Japan

Total

3

2,480 100.0

3.3

−3−

2,300 100.0 △ 7.3

39.4

2,950 100.0 △ 6.3

3. 3Q (October to December) Operating Activities (Consolidated)(1) Operating Results（Units：100million yen, %）Amount

FY2009FY20103Q （Oct.−Dec.）

3Q （Oct.−Dec.）%

ChangeAmount%ChangeNet Sales

810

100.0

△ 15.2

760

100.0

△ 6.2

Operating Income

14

1.8

−

△ 5

△ 0.7

−

Ordinary Income

24

3.0

−

△ 7

△ 0.9

−

Net Income afterTax

18

2.3

−

△ 16

△ 2.2

−

（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）
FY2009FY20103Q （Oct.−Dec.）

3Q （Oct.−Dec.）

90.11

Average Rate in each Period

82.21(2) Sales by Equipment（Units：100million yen, %）AmountAudio Visual Equipment
DVD

FY2009FY20103Q （Oct.−Dec.）

3Q （Oct.−Dec.）%

ChangeAmount%Change585

72.2△ 24.9509

67.0△ 13.093

11.5△ 11.471

9.3△ 23.7Blu-ray Disc

26

3.2

△ 18.8

142

18.7

446.2

LCD Televisions

455

56.2

△ 14.3280

36.9△ 38.5

Others11

1.3△ 90.1

16

2.1

45.5

Information Equipment

159

19.6

48.6

125

16.4

△ 21.4

Others

66

8.2

2.9

126

16.6

90.9

Total

810

100.0

△ 15.2

760

100.0

−4−

△

△

6.2

（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