Presentation of Operating Results in 1st Quarter(Apr.- Jun.) of FY 2010

August 3, 2010
FUNAI ELECTRIC.,LTD.
Security code ６８３９0of 1st Quarter (Apr.-Jun.) ofⅠ Outline
FY2010 Operating Results (Consolidated)
1. Summary of Operating Results (Apr.(Apr.-Jun.)
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 Sales
8. Factor of Changes of Operating Income
9. Financial Conditions
10.
10. Changes of Inventories
11. Capital Expenditures, Depreciation Expense and R&D Expenditures
Expenditures
12. Forecast of Operating Results in 1H and Full FY2010 Ending March 20111

１ Summary of Operating Results (April-June)(100 million yen)

Changes From
Previous 1Q

Previous 1Q

Current 1Q

Net Sales

776749(△3.5%)

Operating Income

3725△12Margin(4.8%)(3.4%)△13 (※1)

Ordinary Income

4012△28Margin(5.3%)(1.7%)

314(4.1%)(0.6%)Net Income after tax
MarginAverage USD- JPY
Exchange Rate
Month End
Exchange Rate
(USD/JPY)

96.75

09/3
98.23

09/6
96.01

△27△8(※2)＋1(※4)△2791.28
10/3
93.04

10/688.48（※1）Forex loss △13（※3） Interest receivables △2, Forex loss △14（※2) Extraordinary loss △1, Income taxes △7（※4） Extraordinary loss △1, less Income taxes +2２△16 (※3)

2

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

776749(100 million yen)Comparison to 2009/6595492

AV Equipment： △103 （△17.3％）

Information Equipment： ＋ 62 （＋56.0％）

Others： ＋ 14 （＋19.4％）

Total1091717286

Previous1Q

Current1Q※： △ 27 （△ 3.5％）※ From FY2010 antenna set for North America isclassified in 'Others' from 'Others in TV related
equipment on Audio Visual Equipment' which wasclassified in FY2009.The sales amount of antenna setfor North America in the 1st quarter in FY2009 was
1100 mil. yen.
3

３

Sales of Audio and Visual Equipment
DVD related Equipment
Television related Equipment(100 million yen)595
(100 million yen)

492

Comparison to 2009/6

249
130

346

362

Previous
1Q

Current
1Q

４

DVD related Equipment：△119 （△47.8％）

Television related Equipment：＋ 16 （＋ 4.6％）

Total：△103 （△17.3％）

4

Sales of DVD related Equipment

VideoDVD Player related Equipment
DVD Recorder related Equipment

Blu-ray disc
Digital STB249
80

Blu-ray disc・ BRD recorder which was newly commerciallymarketed in previous 4Q contributed.

Digital STB

・Digital STB ended the life in the U.Smarket.
(100 million yen)

42

130

38

Previous1Q

DVD Recorders

・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)89

DVD Players

Comparison to 2009/6
DVD Player related Equipment：△ 46 （△57.5％）

34

DVD Recorder related Equipment：△ 6 （△14.3％）

36

Blu-ray disc：＋ 13 （＋34.2％）

Digital STB：△ 80 （△89.9％）

Total：△119 （△47.8％）

51
9Current
1Q

55

Sales of Television related Equipment
CRT TVLCD TVLCD TV(100 million yen)

362

346

・Sales of large sized for North America were slower than
expected which was more offset by Japan and Europe.

3(100 million yen)Comparison to 2009/6

343

Previous
1Q

6362

CRT TＶ：△ 3 （LCD TV： ＋ 19 （＋5.5％）

Total： ＋ 16 （＋4.6％）−）

Current
1Q

6

Sales of Information Equipment(100 million yen)

171
Information Equipment
・In line with the recovery of the market ,incoming orders ofink jet printer increased.

109(100 million yen)

171

Comparison to 2009/6
Information Equipment： ＋ 62 （＋56.0％）

109

Previous
1Q

Current
1Q

7

7

Geographic Breakdown of Sales(100 million yen)

776

749

North America

・In addition to Digital STB ended the life in the U.S
market and DVD and LCD TV decreased.

Europe・LCD TV increased from previous 1Q which was theworst period for us.

Japan・LCD TV increased due to ‘Eco point’. BRD recorderwhich was newly commercially marketed also
contributed.
(100 million yen)

410

Comparison to 2009/6588

72678613196200

Previous
1Q

Current
1Q

North America：△178 （△ 30.3％）

Europe：＋ 11 （＋ 18.3％）

Asia & Others：＋ 36 （＋116.1％）

Japan：＋104 （＋109.2％）

Total： △ 27 （△3.5％）

8Factor of Changes of Operating Income《Comparison to 2009/6》＊ Add-value=Sales - (Cost of sales + selling expenses)

SalesDecrease△3Add-value
deteriorated＊△937OperatingIncome25OperatingIncome

Previous
1Q

Current
1Q

99

Financial Conditions（100 million yen）

Liabilities
andNet Assets

2,040

2,175

Comparison to 2009/6
Assets＋ 75

・Cash / Deposit△ 158423

・Accounts Receivables

＋ 34

384

547

・Inventories

＋ 184

440

445

455

・Fixed Assets and Others＋ 15

Trade Payables

413

519

Accounts Payables
and Others

325

313
300

Liabilities＋ 68

・Trade Payables＋ 106

・Accounts Payables
and Others△ 38

Cash / Deposit

Assets2,100908

860

Accounts
Receivables

389

351

Inventories

363

Fixed Assets
and Others

Net Assets

750

287
1,427

1,362

1,369

Net Assets
2,1002,040

2009/6

2010/3＋7（ Shareholders’ Equity Ratio 62.5％）

2,175
2010/61010

Changes of Inventories
Finished products
Work in process

547(100 million yen)

363
241

122384

288

208

176

Comparison to 2009/6
Finished products＋ 47

Work in process

＋ 137

259

2009/6

2010/3

2010/6

1.4months

1.7months

2.2months〈Inventories Turnover〉
11Capital Expenditures, Depreciation Expenseand R&D Expenditures

111Q
CapitalExpenditures

R&DExpenditures

Comparison to Previous 1Q（100 million yen）
160

Depreciation
ExpenseFull Year+18-

CapitalExpenditures

160-

140

1201201001008080606040402020161
13476
12313010

2009/6 2010/63110

2009/6 2010/6R&D
Expenditures（100 million yen）

1400

Depreciation
Expense4354430

2009/6 2010/6

2010/3 2011/3

2010/3 2011/3（Projection）(Projection）

2010/3 2011/3（Projection）

1212

Forecast of Operating Results in
1H and Full FY2010 Ending March 2011
(100million yen)

Forecast 1H

Net Sales

Forecast FY2010

1,700

3,500

Operating Income

72130（ Margin ）(4.2%)(3.7%)

Ordinary Income

70129（ Margin ）(4.1%)(3.7%)Net Income After Tax

56100（ Margin ）(3.3%)(2.9%)USD-JPY Exchange Rateon Budget

90.00
13Ⅱ

Supplemental Data
1. Quarterly Operating Summary of FY 20092009, 2010
2010
２.Quarterly Changes of Sales Amount by Equipment

14１

Quarterly Operating Summary of FY 2009, 2010
(100million yen)

FY 2009
1Q

2Q

FY 2010

3Q

4Q

1Q

Net Sales

776

894

810

669

749

Operating Income

3763

14

△325Margin(4.8%)(7.1%)(1.8%)(△0.6%)(3.4％)

Ordinary Income

4055

24

△312Margin(5.3%)(6.2%)(3.0%)(△ 0.5%)(1.7％)

3141

18

114(4.1%)(4.6%)(2.3%)(1.8%)(0.6％)Net Income AfterTax
Margin15

2 Quarterly Changes of Sales Amount by Equipment
DVD Equipment（100 million yen）

1,000

800

Television Equipment

776

810
213

125

749
669

130

112

600

450

456

362
348

346

200

0Others

894

249

400

Information Equipment

109

156

159

122

171

72

75

70

87

86

1Q

2Q

3Q

4Q

1Q

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

16Disclaimer•

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-visual
devices 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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