Presentation of Consolidated Operating Resultsin FY 2009 (Apr.-March) and Future Business Strategy

May 11, 2010
FUNAI ELECTRIC.,LTD.

0

Ⅰ Future Business Strategy
・ Management Policy
・ Medium-term Target and Measures

FUNAI ELECTRIC.,LTD.
1

１．Management Policy ①

FY2010 Projection (Sales/Operation Profit)（100 million yen）

Sales
Operating Profit(Margin)Average USD- JPY
Exchange Rate

FY2009Projection

FY2009Results

FY2010
Projection

3,568

3,400

3,900

130

120

145

（3.6%）（3.5%）（3.7%）

92.50

92.60

90.00

2

２．Management Policy ②
Focus on promotion of viable products bolstered by speedy managementProductProductPlanning
Planning

Sales

Speed

Development
Development

Procurement
Procurement&&Manufacturing
Manufacturing

Shift from analog to digital

Shortened product life cycles
Rapid price reductions

To adjust to market changes

Rapid response is a must3

３．Medium-term Target and Measures ①
Targets for Consolidated Sales and Operating Profit for FY2011
Sales

OperatingProfit

5,000（100 million yen）

250 （ 5% margin ）Measures to Achieve the Target
Fostering of human resources and appointments to responsible positions

12 Target for Sales of 10 million units LCD TV units(The minimum requirement for survival)

3 Expansion of Blu-ray and related products line-up
PlayerRecorderHome Theater System

Portable Player

4 Enlargement of mechatronics-related business (e.g., printers)
5 Entrance into emerging markets (BRICs) and successful cultivation ofnew clients4

４．Medium-term Target and Measures ②
Medium Term Sales Target
5,000（100 million yen）
5,000

3,830

4,000

3,421
3,000

3,967
3,608

3,500
2,771

3,027

3,149

2,000

1,000

0

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011（Projection） （Target）
5５．Medium-term Target and Measures ③Medium Term Operating Profit Target
Margin10.7%（100 million yen）

400

8.7%

3505.2%2502002506.5%300

365333150233

2073.7%

111

1305%

0.5%

100503.5%▲ 0.8%
140▲24(50)FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011（ Projection）（ Target）

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Ⅱ Outline of FY 2009 Operating Results(Consolidated)
1. Summary of Operating Results
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. Sales of Information Equipment
7. Geographic Breakdown of Sale
8. Financial Condition
9. Changes of Inventories
10. Capital Expenditures, Depreciation Expense and R&D Expenditures
11. Projection of FY2010 Operating Results7

１

Summary of Operating Results(100 million yen)

FY2008Results

Net Sales

Net Income after tax
MarginAverage Exchange Rate
(USD/JPY)+122△151(△4.6%)

111+97△9(3.6%)(3.5%)＋5 (※1)＋7(※3)

12114

116+104+2(0.4%)(3.5%)(3.7%)△13 (※2) ＋172(※4)

△173

87

103+276(△5.7%)(2.6%)(3.3%)

3,149

14120(0.5%)

100.66（※1） Interest receivables +7、Interest expenses △1
Forex loss △1（※2） Extraordinary income +1,Extraordinary loss △9, Income taxes △5Month End
Exchange Rate(USD/JPY)

Changes
FromProjection(+4.0%)

3,300

Ordinary Income
Margin（Released in Oct 29)）

FY2009Results

3,027

Operating Income
Margin

Revision ofForecast

Changes
From
Previous
FY200892.50+1692.60（※3） Interest receivables △27,Forex gain +28, Interest expenses +3, Others +3（※4） Extraordinary income △4, Extraordinary loss +41,
Decrease of income taxes for prior periods +168, Income taxes △33

09/3

09/9

10/398.2390.21

93.04

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

3,027

3,149
Comparison to Previous FY

2,306

2,335450546271268

FY2008FY2009AV Equipment： ＋ 29 （＋ 1.3％）

Information Equipment： ＋ 96 （＋21.4％）

Others：△Total： ＋122（＋ 4.0％）

3 （△ 1.5％）

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

2,306
850

1,456

FY20082,335699

Comparison to Previous FY
DVD Equipment：△151 （△17.8％）

Television Equipment：＋180 （＋12.4％）：＋ 29 （＋ 1.3％）

Total

1,636

FY200910４．Sales of DVD Equipment
Video
DVD Player Equipment
DVD Recorder Equipment

Blu-ray disc
Digital STB

198
122

699
10232
154189306
114
FY2008・In addition to BRD player commerciallymarketed BRD recorder. BRD player
was less than expected.
Digital STB&Others ・Digital STB ended the life in the U.Smarket.

Blu-ray disc

850
204

DVD Recorder・Despite of the market contraction, demand in U.S. for DVD player
was stronger than expected. DVD recorder tracked the market trend.

(100 million yen)

20

DVD Player

FY2009Comparison to Previous FY
Video：△ 10 （△50.0％）

DVD Player Equipment：＋ 28 （＋13.7％）

DVD Recorder Equipment：△ 44 （△22.2％）

Blu-ray disc：＋ 67 （＋54.9％）

Digital STB：△192 （△62.7％）

Total：△151 （△17.8％）
11５．Sales of Television Equipment
CRT TVLCD TVCRT TV

Others・The production ended due to the rapid growth and replacementwith FPD TV.

1,636(100 million yen)

1,456

682

LCD TV・Expanded centering on the U.S. market.

Comparison to Previous FY

1,594
1,342

3236

FY2008FY2009CRT TＶ： △ 76 （△92.7％）

LCD TV： ＋252 （＋18.8％）

Others：＋Total： ＋180 （＋12.4％）

4 （＋12.5％）

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6．Sales of Information Equipment546

情報機器 Equipment
Information
・Sales of digital still camera were not posted as orders fromOEM partners stopped.

450・Incoming orders of ink-jet printers increased.

546
450

FY2008Comparison to Previous FYInformation Equipment： ＋ 96 （＋21.4％）

FY200913

7．Geographic Breakdown of Sales
North America

North America
EuropeAsia & Others
Japan

・LCD TV under fierce competition increased, but digital STB
decreased due to the end of life in the market.

Europe(100million yen)・Under on-going restructuring both of DVD and LCD TVdecreased

3,149

3,027

Japan
・LCD TV and Blu-ray disc recorder increased.

Comparison to Previous FY

2,164
2,161

North America

305
196364132370484

FY2008：＋3 （＋ 0.1％）

Europe：△ 59 （△16.2％）

Asia & Others：＋ 64 （＋48.5％）

Japan：＋114 （＋30.5％）

Total： ＋122 （＋ 4.0％）

FY2009148．Financial Conditions（100 million yen）

Cash / Deposit

Assets

Accounts
Receivables
Inventories

1,998

2,166

2,040

917860

341

351

484

384965288306Comparison to 2009/3

Fixed Assetsand Others

439

424445Trade Payables

281

411

313

Accounts Payables
and Others

362

357

300

Assets＋ 42・Cash / Deposit△ 105・Accounts Receivables＋ 63

・Inventories＋ 78

・Fixed Assets and Others＋Liabilities
・Trade Payables

Liabilities
andNet Assets

1,355
Net Assets

1,398

1,427

・Accounts Payables
and Others

Net Assets
1,998
2009/3

2,166
2009/122,040

6△ 30＋ 32
△ 62＋ 72

（Shareholders’ Equity Ratio 69.6%)

2010/315

9．Changes of Inventories
Finished products
Work in process

484(100 million yen)384306Comparison to 2009/3326208209
158176

2009/3

2009/122010/3

1.5months

1.8months

1.7months

97

Finished products△ 1Work in process＋79〈Inventories Turnover〉
16

10.

Capital Expenditures, Depreciation Expenseand R&D Expenditures
CapitalExpenditures

Depreciation
Expense

R&D
Expenditures△7＋7＋4(100million yen)

180

150

12090134
13060

30

50

4336

430

FY08 FY09

FY08 FY09

FY08 FY0917

11．Projection of FY2010 Operating Results（100 million yen）

Result of FY 2009

Changes
fromPreviousYear

Forecast of FY 2010

1st Half

2nd Half

Full Year

1st Half

2nd Half

Full Year

1,670

1,4793,149

1,700

1,800

3,500

Operating Income

100

11111

7258

130

Margin

(6.0%)(0.7%)(3.5%)(4.2%)(3.2%)(3.7%)

Ordinary Income

95

21116

7059

129

Margin

(5.7%)(1.4%)(3.7%)(4.1%)(3.3%)(3.7%)

73

30

103

56

44

100(4.4%)(2.0%)(3.3%)(3.3%)(2.4%)(2.9%)Net Sales

Net Income after tax
MarginAverage Exchange Rate
(USD-JPY)

94.78

90.43

92.60

+351
（+11.1%）+19+13△390.00（100 million yen）

（Reference）Sales Breakdown by Equipment
Results ofFY2009
FY2009Forecast ofFY2010
FY2010Changes2,335

2,565＋230

Information

546618＋ 72

Others268317＋ 49

Total

3,149

3,500＋351

Audio & Visual18

Supplemental Data ①

Ⅲ． Summary of Operating Results (Jan.(Jan.-Mar.)
1.
2.
3.
4.
5.
6.
7.

Summary of Operating Results
Breakdown of Sales by Equipment
Sales of Audio and Visual Equipment
Sales of DVD Equipment
Sales of Television Equipment
Sales of Information Equipment
Geographic Breakdown of Sales19１．Summary of Operating Results (Jan.-Mar.)(100 million yen)

Changes fromPrevious 4Q

FY 2008 4Q

FY 2009 4Q

Net Sales627669(＋6.6%)

Operating Income△18△3+15Margin(△3.0%)(△0.6%)＋0 (※1)

Ordinary Income△11△3+8Margin(△1.9%)(△0.5%)＋14(※2)△1311+24(△2.1%)(1.8%)Net Income after tax
MarginAverage Exchange Rate (USD- JPY)

95.19＋42△7 (※3)＋16(※4)90.74（※1） Interest receivables +0、 Interest expenses △0
Others △ 0（※3） Interest receivables △3、 Forex gain △ 6、 Interest expenses +1、 Others +1（※2） Extraordinary loss △8、 Income taxes +22（※4） Extraordinary loss △4、 Income taxes +20

20

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

627

669
Comparison to Previous 4Q

468
490

AV Equipment： △ 22 （△ 4.5％）

Information Equipment： ＋ 56 （＋84.8％）

Others

66
71
Previous 4Q(Jan.-Mar.)

122

Total

： ＋ 8 （＋11.3％）： ＋ 42（＋ 6.6％）

79
Current 4Q(Jan.-Mar.)21

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

490
161

468
Comparison to Previous 4Q

112

329

356

Previous 4Q(Jan.-Mar.)

Current 4Q(Jan.-Mar.)DVD Equipment： △ 49（△30.4％）

Television Equipment： ＋ 27（＋ 8.2％）

Total： △ 22（△ 4.5％）

22

４．Sales of DVD Equipment
VideoDVD Player Equipment
DVD Recorder Equipment

Blu-ray disc
Digital STB(100 million yen)

161
Comparison to Previous 4Q

427
31
14Video：△ 4 （−）

−）

112

DVD Player Equipment：27

DVD Recorder Equipment： △ 3 （△ 9.7％）

Blu-ray disc

： ＋ 40 （＋285.7％）

Digital STB： △ 82 （△ 96.5％）

Total： △ 49 （△ 30.4％）2885− （543Previous 4Q(Jan.-Mar.)

Current 4Q(Jan.-Mar.)23

５．Sales of Television Equipment
CRT TVLCD TV
Others(100million yen)3293566313

Comparison to Previous 4Q

348

108Previous 4Q(Jan.-Mar.)

Current 4Q(Jan.-Mar.)CRT TV：△ 6 （LCD TV： ＋ 35 （＋11.2％）

Others

： △ 2 （△20.0％）

Total： ＋ 27（＋ 8.2％）−）

24

6．Sales of Information Equipment
122(100million yen)Comparison to Previous 4Q

66
122

Information Equipment： ＋ 56 （＋84.8％）

66

Previous 4Q(Jan.-Mar.)

Current 4Q(Jan.-Mar.)25

7．Geographic Breakdown of Sales
North America
EuropeAsia & Others
Japan669(100million yen)

627

Comparison to Previous 4Q

363
450

North America：△ 87（△ 19.3％）Europe：＋ 11（＋ 20.0％）

Asia & Others：＋ 42（＋221.1％）

Japan：＋ 76（＋ 73.8％）

Total：＋ 42（＋666155196.6％）

179

103

Previous 4Q(Jan.-Mar.)

Current 4Q(Jan.-Mar.)Ⅳ

26

Supplemental Data ②
Quarterly Comparison of FY 2008 and FY 2009
1. Operating Summary
２. Sales Amount by Equipment

27

Quarterly Operating Summary of FY 2008, 2009

１(100million yen)

FY 2008

Net Sales

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

594

852

954

627

776

894

810

669

33 △ 10△183763

14△3(△1.1%)(△3.0%)(4.8%)(7.1%)

15 △ 35△114055(△3.8%)(△1.9%)(5.3%)(6.2%)

16 △ 39△133141

1811(△2.1%)(4.1%)(4.6%)(2.3%)(1.8%)

Operating Income
Margin9(1.7%)

Ordinary Income
Margin

(3.9%)

44(7.5%)(1.8%)Net Income AfterTax △137
MarginFY 2009(△23.2%)(2.0%)(△4.1%)(1.8%) (△0.6%)

24△3(3.0%) (△ 0.5%)

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Quarterly Changes of Sales Amount by Equipment

2DVD Equipment

Television Equipment

OthersInformation Equipment（100 million yen）

954

1,000

894

852
800

810

776

221

213

594

280

627

125

249

112

600

161

188558463

460

340

400

669

329

229

356

357

200

0107

170

70

62

1Q
(08/6)

109

156

159

122

68

66
71

61

62

66

79

2Q

3Q

4Q

1Q

2Q

3Q

4Q

(08/9)(08/12)(09/3)(09/6)(09/9)(09/12)(10/3)

107

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Disclaimer•This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that thesestatements are based on information relating to factors that may impact futurebusiness performance that was available for analysis at the time this document
was printed. These factors include industry trends relating to the businessareas of Funai Electric Co., Ltd. or the Funai Group, such as audio-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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