Financial Results of FY2016

May 17, 2017

FUNAI ELECTRIC CO.,LTD.
TSE 683901. Summary of 4 th Quarter (Jan.-Mar.)（100 million yen）

FY20154Q

FY2016
4Q

Difference(Y / Y)-63

Net Sales

367

304

Operating Income

-33

-21

12(-9.1%)(-7.1%)

(－)

-51

-28

23

(Margin)(-14.1%)(-9.4%)(－)

Net Income Attributableto owners of parent-248-14234(Margin)(-67.6%)(-4.7%)(－)(Margin)

Ordinary Income

Average USD-JPY
Exchange Rate
Month End
USD-JPY
Exchange Rate

115.05(-17.1%)112.85

Dec.2015

Mar.2016

Dec.2016

Mar.2017

120.61

11268

116.49112.1912. Summary of FY2016 (Apr.-Mar.) 1（100 million yen）

FY2015
Actual

FY2016
Forecast

FY2016
ActualNet Sales

1,700

1,345

1,338

Operating
Income-105-69-67(-6.2%)(-5.1％）(-5.1%)-136-78-77（Margin）(-8.0%)（-5.8%）(-5.8%)Net Income
Attributable toowners of parent-338-69-67(Margin)(-19.9%)（-5.1%）(-5.0%)

119.98108.17（Margin）

Ordinary
IncomeAverage USD-JPY
Exchange Rate
Month End USD-JPY
Exchange Rate

Mar..2016

Mar.2017

112.68112.19Difference(Y/Y)

VS Forecast-362△7(-21.3%)(99.4%)+38＋2+59＋1+271＋2108.88

2

3. Summary of FY2016 (Apr.-Mar.) 2（100 million yen）

FY2015Non-operating income
Non-operating expenses

Ordinary Income
Extraordinary income
Extraordinary losses

Income taxes

Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)
Foreign exchange
gain and loss
Interest
incomeInterest
Payments

839

515-3-24-136-77

59

16
200

16
110-189-320-72

248

18-5-23-338

-67

271

(note:1)(note:2)

Income before Income
Taxes

Difference(Y / Y)FY2016(note:2 Extraordinary income and losses)
Extraordinary
incomeExtraordinarylosses

Others34. Breakdown of Sales by Equipment
 AV Equipment: LCD TVs and DVD related products decreased.
 Info Equipment: Increased due to good sales of own development ink-cartridge
 Others:Audio Accessories decreased.
（100 million yen）

1,700

Y / Y (Change)（100 million yen）

AV Equip-325(-22.0%)DVD Equip-50(-18.8%)TV Equip-275(-22.7%)

Information Equip

1(1.5%)

Others-38(-22.0%)

Total-362(-21.3%)

1,338
AVEquipment

DVD：262
T V：1,215Sales Composition
DVD：212
T V：940

Information
Equipment

OthersInformation
3% 10%Equip.

DVD15%FY2015

Others

TV72%

OthersDVD

Information
Equip.

FY2016TV4

5. Sales of DVD related Equipment
 Blu-ray player and recorder increased due to good sales.

262
DVD Players（100 million yen）

212

（100 million yen）

Y / Y (Change)

DVD Recorders

Blu-ray disc

DVD Players-33(-43.7%)DVD Recorders-28(-48.8%)

Blu-ray disc+21(+21.3%)

Others-10(-40.5%)

Total-50(-18.8%)

Others5

6. Sales of LCD Television Decreased due to slow order from new client and weak sales
caused by price competition.

1,215（100 million yen）

940

（100 million yen）

Y / Y (Change)

LCD TV：- 275（-22.7%）

1,215
940

FY2015FY2016

67. Geographic Breakdown of Sales
 Americas: LCD TVs and Audio Accessories decreased.
 Japan:Blu-ray disc players for OEM had good sales.
（100 million yen）

（100 million yen）

1,700

Y / Y (Change)

1,338

Americas

1,359Americas-330(-24.3%)

Europe-6(-38.3%)

Asia & Others-6(-58.4%)

Japan-20(-6.2%)

Total-362(-21.3%)

1,029

EuropeAsia & Others

JapanSales Composition
Asia&Others

1610104315

295

Japan

Japan

EuropeFY2015

Asia&Others

Americas

FY2016
Americas

EuropeFY2015FY20167

8. Operating Income Analysis (Y/Y)＊ Add-value=Sales – (Cost of sales + selling expenses)（100 million yen）

Y / Y (Change)

Operatingloss

Operatingloss
Decrease ofGeneral
ExpensesSales
decrease

FY2015

Increased ofAdd-value

FY20168

9. Financial Conditions（100 million yen）
（100 million yen）

1,541

Y / Y (Change)

1,232
Cash / Deposit

1,086

Accounts
Receivables

AssetsInventories
Fixed Assets
and Others

Assets- 455

・Cash / Deposit- 175

・Accounts Receivables- 84

・Inventories- 109

・Fixed Assets and Others- 87

Trade Payables
Accounts Payables
and Others

Liabilities
AndNet Assets

Liabilities- 377

・Trade Payables+30

・Accounts Payables and Others

Net Assets

1,232

1,086

（ Equity Ratio

1,541
Mar.2016

Net Assets

Dec.2016- 407- 7870.4%）

Mar.2017
910. Inventories Trends
Y / Y (Change)

Finished products
Work in process： - 73： - 36（100 million yen）

<Inventories Turnover period in months>

521
417

Finished products

589
482
371

312

299

268262Work in process

1011. Forecast FY2017

FY2016 Actual

1 halfNet Sales

661

Change(Y/Y)

FY2016 Forecast

2 halfFull year

677

1,338

1 half

814

2 half

1 half

2 half Full year

1,600 +153+109 ＋262

Full year

786（＋19.5％）

Operating
Income(Margin)

Ordinary
Income(Margin)△36△31△6760(△5.5%) (△4.7%)(△5.1%)(0.8%)(0.0%)△3△7770(△11.3%) (△0.3%)(△5.8%)(0.9%)(0.0%)△74

Net Income
Attributableto owners of parent△769△674△2(Margin)(△11.5%)(1.3%)(△5.0%)(0.4%)(△0.3%)

105.72112.05108.88Average USD-JPY
Exchange Rate

6 +42+31+73+3+84△11+69(0.4%)

7 +81(0.4%)

2 +80(0.1%)

110.00円
1112. Forecast of Sales by Business
DVD/BDLCD TVs【FY2016 vs FY2017】 △6.3％【FY2016 vs FY2017】＋39.4％（ 100 million yen ）

1,700
1,600

1,338

Office Solution【FY2016 vs FY2017】+10.9％

Others【FY2016 vs FY2017】 △74.4％

12

13. Capital, Depreciation, R&D（ 100 million yen ）CapitalDepreciation【FY2016 vs FY2017】△30.0％【FY2016 vs FY2017】△7.1%R&D【FY2016 vs FY2017】△6.5%（Sales ratio）

13

Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography

141. Quarterly Financial Summary of FY 2015 - 2016
（ 100 million yen ）FY2015FY2016

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Net Sales

378

487

468

367

250

411373304

Operating
Income-42-16-14-33-28-7-10-21(-11.2%)(-3.3%)(-3.0%)(-9.1%)(-11.5%)(-1.8%)(-2.7%)(-7.1%)-37-33-14-52-58-16

26-28(-9.8%)(-6.9%)(-2.9%)(-14.1%)(-23.4%)(-3.9%)(7.0%)(-9.4%)-40-39-11-248-57-1923-14(-10.7%)(-8.1%)(-2.2%)(-67.6%)(-22.8%)(-4.6%)(6.2%)(-4.7%)

121.72121.72121.44115.05108.53102.90111.25112.85( Margin )Ordinary Income( Margin )Net Income
Attributableto owners of parent( Margin )Average USD-JPY
Exchange Rate

15

2. Quarterly Sales Trends by Equipment（ 100 million yen ）DVD Equipment

487
378

TV Equipment

Information Equipment

Others468

6881411

367

373

5460

53365
251

250
4732969270

30442314

255

211

160
155215391246836

934

1Q

2Q

3Q

4Q

1Q

FY201512312Q

14351635

3Q

4Q

FY201616

3 ．Quarterly Sales Trends by Geography

Americas487

EuropeAsia & Others（ 100 million yen ）

Japan

468
411

378

373

367

304
406

250

377

292

344

284

288
216

181
3

52
179

174

4
82

1Q

2Q

3Q

46FY2015

31132180

2
166

63

81

85

4Q

1Q

2Q

3Q

4Q

FY201617

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 factors that may impact future businessperformance 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 communicationequipment, the economic conditions of both domestic and international markets, andfluctuations in currency exchange rates. Actual performance may greatly differ fromprojections included in this document because of the impacts of uncertainty in suchareas 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.

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