From April
1, 2009
To
December 31, 2009

February 3, 2010
Funai Electric Co., Ltd.

Third Quarter (April-December) Consolidated Financial Summary
for the Period Ending March 2010
Previous Year Third Quarter

Current Year Third Quarter

From April 1, 2008
To December 31, 2008

From April 1, 2009
To December 31, 2009

AmountAmountPercent

Million yen

Net Sales%

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

Million yen％

240,096100.0

248,073

100.0

3.3

Operating Income

3,273

1.4

11,546

4.7

252.8

Ordinary Income

2,393

1.0

12,042

4.9

403.2△1,676△0.7

12,0094.8―△16,046

△6.7

9,156

3.7

―

Net Income before Taxes andOther Adjustments

Net Income /Loss after Tax

Net Income/Loss per Share△ 470.66

268.57

Notes:
Includes 14 consolidated subsidiaries, 1 non-consolidated subsidiary accounted for by the equity method and
1 affiliated company accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 9-Month Period ended December 31, 2009
February 3, 2010

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
Scheduled date of Submission of Quarterly Report ; February 4, 2010

TEL: (072) 870-4395

1.Third Quarter Consolidated Results for the Period Ending March 2010 (April 1, 2009 – December 31, 2009)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
3rdQuarter FY2009
3rdQuarter FY2008

Million yen%

Million yen

248,073240,096

3.3−

11,546
3,273

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted BasisYen

3rdQuarter FY2009
3rdQuarter FY2008

%

252.8
−

Million yen%

12,042
2,393

Million yen

403.2
−

%

−
−

9,156
△16,046

Yen

268.57△470.66

266.64−(2) Consolidated Financial Position
Shareholders’Equity Ratio

Net Assets

Total Assets
Million yen

Million yen

Net Assets
Per Share%

3rd Quarter FY2009
Fiscal Year 2008

216,613
139,813
199,882
135,596(Reference) Shareholders’ Equity
3rd Quarter FY2009 ended December 31, 2009 139,115million yen
Fiscal Year 2008 ended March 31, 2009
135,134 million yen

Yen

64.2
67.6

4,080.52
3,963.72

2. Dividends
Corresponding Period

Fiscal Year 2008
Fiscal Year 2009
Fiscal Year 2009
(Projection)st

1 Quarternd

2 Quarter

Dividend per Share
3rd Quarter

yen
−

yen

0.00

yen
−

−

0.00

−

Year end

Annual

yen

yen

40.00

40.00

40.00

40.00

3. Forecast of Consolidated Results for the Full Year (April 1, 2009 - March 31, 2010)(% denotes year on year)

Net Sales
Full Year

Operating Income Ordinary Income

Million yen%

Million yen

330,000

9.0

12,000%751.3

Million yen%

11,400 829.7

Net Income
Million yen

Net Income
Per Share%Yen

8,700 −

255.19

Note:
Revision of Forecast of Consolidated Results for the Nine month period and the Full Year in this 3rdQuarter;No.

4. Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting for fiscal 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: No
Note: Please refer to “Qualitative Information and Financial Statements”.
(4) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of December 31, 2009; 36,104,196shares
as of March 31, 2009; 36,104,196shares(2)Number of shares of treasury stock as of December 31, 2009; 2,011,531shares
as of March 31, 2009; 2,011,321shares(3)The Average number in the quarter of outstanding shares on December 31, 2009; 34,092,763shareson December 31, 2008; 34,093,093shares

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.

Qualitative Information and Financial Statements
1. Qualitative information relating to consolidated business performance
During the third quarter of the consolidated fiscal year (April 1, 2009 to December 30, 2009), the economy in
the United States, a key market for the Funai Group, experienced a gradual recovery supported by large-scale
stimulus measures. The unemployment rate remained at a historically high level, however, and aself-sustaining economic recovery was not yet evident. Growth in personal consumption was weak, andconsumers intensified their emphasis on low-prices.
Severe conditions continued in the consumer electronics appliances industry as well, as manifested in
substantial price reductions on numerous products. Viewed by individual products, the demand for LCD TVs,
one of the most leading products in the sector, expanded smartly in existing core markets in Japan, the U.S.
and Europe as well as in the China market, which is demonstrating remarkable economic growth. In addition,
LCD TVs that take advantage of new LED backlighting technology were commercially introduced, and are
predicted to rapidly gain in popularity in the future as a result of attractive product characteristics including
save consumption of electricity and high-resolution. On the other hand, tight supply and demand conditions
continued for LCD panels, the most primary component, and the market price remains high.
Under these conditions, consolidated net sales for the Funai Group for the third quarter of the current
consolidated fiscal year increased 3.3% compared with the same period of the previous consolidated fiscal year
to JPY248,073 million.
By device type, in the audio-visual equipment category sales of LCD televisions were substantially higher,
reflecting the contribution of Philips brand products. While sales of DVD players increased, as did sales ofBlu-ray Disc players, which are expected to grow in the future, sales of DVD-related products as a whole fellcompared with the same period of the previous consolidated fiscal year as sales of television set-top boxes* forthe U.S. market declined, following the termination of production in June 2009. As a result, net sales ofaudio-visual equipment rose 2.8% year-on-year to JPY186,772 million.
* Devices to convert digital signals into analog signals, enabling viewers to watch terrestrial digital
broadcasting on existing analog televisions. Terrestrial analog broadcasting in the United States wasended in June 2009.
In information equipment, placements of orders from OEM partners for digital still cameras ran their course
and the Funai Group did not record any sales of these products. Sales of printers, however, expanded following
the growth in orders from OEM partners. As a result, net sales of information equipment were JPY42,361
million, up 10.3% compared with the same period one year earlier.
Net sales of receivers and other related electronic devices slipped 5.3% year-on-year to JPY18,939 million.
Turning to earnings, operating income increased 252.8% compared with the same period of the previous
consolidated fiscal year to JPY11,546 million, boosted by earnings from Philips-brand goods and otherproducts. Ordinary income rose 403.2% year-on-year to JPY12,042 million, reflecting improvements in
non-operating income and expenses compared with the third quarter of the previous consolidated fiscal year.
Net income for the quarter was JPY9,156 million, compared with a net loss of JPY16,046 million in the third
quarter of the previous consolidated fiscal year that reflected in part the recognition of “income taxes for priorperiods.”

2. Qualitative information relating to consolidated financial position
The financial position of Funai Electric Co., Ltd. at the end of the third quarter is discussed below.
Assets increased by JPY16,731 million compared with the end of the previous consolidated fiscal year. This
primarily reflected an increase in notes and accounts receivable-trade of JPY5,268 million, an increase inmerchandise and finished goods of JPY11,674 million, an increase in raw materials and supplies of JPY6,277
million, and a decrease of JPY4,734 million in cash and deposits.
Liabilities increased by JPY12,514 million compared with the end of the previous consolidated fiscal year. The
primary factors were an increase in notes and accounts payable-trade of JPY13,028 million.
Net assets rose by JPY4,216 million compared to the end of the previous consolidated fiscal year. This mainlyreflected an increase of JPY8,076 million in retained earnings, and a decrease of JPY4,376 million in foreign
currency translation adjustment.

3 .Qualitative Information Relating to Consolidated Performance Forecasts:
Please refer to the “Funai Reports Revised Forecast of Consolidated Operating Results” published on October 29,
2009 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 other regions overseas,
as well as rapid fluctuations in product prices.

4. Other(1) Important changes relating to subsidiaries and affiliates during the fiscal term (changes involving specificsubsidiaries that resulted in changes to the scope of consolidated accounting)
There are no relevant changes.

(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancialstatements covering consolidated accounting for fiscal quartera. Simplified accounting procedure
The amount of allowance for depreciation and amortization is calculated by distributing the applicable amount forthe 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 for buildings acquiredon or after April 1, 1998 that do not include incidental facilities, which are calculated using the fixed amount or
straight line depreciation method).

b. 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) Changes to general rules and procedures, as well as denotation methods for accounting relating to the
preparation of consolidated financial statements for the fiscal quarter• Changes relating to items concerning accounting procedure standards
In the past, the Construction Completion Method was exclusively used to account for revenues associated with
contract works. Starting from the current first quarter consolidated accounting period, the “Accounting Standard
for Construction Contracts” (Accounting Standard No. 15 of the Financial Accounting Standards Foundation
dated December 27, 2007) and the “Guidance on Accounting Standard for Construction Contracts” (GuidanceNo. 18 of the Financial Accounting Standards Foundation dated December 27, 2007) have been applied tocertain contract works. As such, any contract works that commenced during the first quarter consolidated
accounting period and from the first quarter to the current third quarter consolidated accounting period had adegree of progress which can be calculated with a certain level of accuracy at the end of such quarter was
accounted for using the Percentage of Completion Method (the cost ratio method was used to calculate contract
work completion rate). For other contract works, the Construction Completion Method continued to be used.
The effect on net sales or profit/loss is minimal as a result of this accounting standards change.

(4) Corrective action implemented based on the application of the Anti-Tax Haven Law
a. On June 28, 2005 we received a notice from the Osaka Regional Taxation Bureau regarding the implementationof 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 theincome 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 Office of
the Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. This arbitration istruly unfortunate and unacceptable. Currently, we are making every effort to assert the validity of our position 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 and Disclosures
for Taxes” (Report No. 63 of the Auditing and Guaranteeing Work Committee of the Japanese Institute ofCertified Public Accountants) on March 8, 2007.

b. 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 foran 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 Office of

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 validity ofour 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 theapplicable overseas subsidiaries at the time such subsidiaries’ fiscal years are completed, we canonly 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 the applicable tax system on the income of the Hong Kong
subsidiary was carried out. The calculated impact at the parent company level after deducting thedividend income received from the Hong Kong subsidiary for the fiscal years ended March 2008 and2009 was estimated to be JPY700 million including corporate, residential, and business taxes. Dueto the aforementioned reason, however, the accounting procedure for the figure relating to thiseffect has not yet been conducted.

5. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
3rd Quarter FY2009(As of December 31, 2009)

Fiscal year 2008
(As of March 31, 2009)ASSETS;
Current Assets
Cash and deposits

91,76896,503

Notes and accounts receivable-trade34,113

28,844Merchandise and finished goods

32,59920,925Work in process

1,461

1,635

Raw materials and supplies

14,3948,116

Others

6,241

7,957

Allowance for doubtful accounts

△ 233

△ 273

Total current assets

180,345

163,709

Property, plant and equipment

15,86816,025Intangible assets

5,126

5,647

Others

16,02816,061

Allowance for doubtful accounts△ 754△ 1,561

Total investments and other assets

15,273

14,499Total noncurrent assets

36,26836,173

216,613

199,882

Notes and accounts Payable-trade41,18528,157

Short-term loans payable

4,373

12,938

Income taxes payable

1,507

1,623

Reserve for products guarantee

2,289

2,191

Provision

504

302

Others21,772

15,168

Total current liabilities

71,63360,382700

666

Provision

2,423

2,343

Others

2,043

894

Total noncurrent liabilities

5,167

3,904

76,80064,286

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities
Long-term loans receivable

TOTAL LIABILITIES(Mil. Yen)
3rd Quarter FY2009(As of December 31, 2009)

Fiscal year 2008
(As of March 31, 2009)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

118,124

110,047

Treasury stock△ 24,340△ 24,340

158,308150,233

182△ 98

Foreign currency translation adjestment△ 19,376△ 14,999

Total valuation and translation adjestments△ 19,193△ 15,098

Subscription rights to shares

51

17

Minority interests

645

443

TOTAL NET ASSET

139,813

135,596

TOTAL LIABILITIES AND NET ASSETS

216,613

199,882

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

(2).Consolidated quartely statements of income(Mil. Yen)

(Cumulative 3rd quarter from April 1 to December 31, 2009)
3rd Quarter FY2008

3rd Quarter FY2009( from April 1, 2008
to December 31, 2008 )
240,096( from April 1, 2009
to December 31, 2009 )248,073

Cost of sales

202,259

200,334

Gross profit

37,83647,738Selling, general and administrative expenses

34,56336,192

Operating income

3,273

11,546

Interest income

3,085

584

Dividends income

56

33

Other

370

287

3,512

904

Interest expenses

282

56

Equity in losses of affiliates

157

31

3,514

113

437

207

4,392

408

2,393

12,042Gain on prior period adjustment

357-

Gain on sales of noncurrent assets

60Profit on Sales of Investment Securities

−

34

Other

113

7

Total extraordinary income

478

41

Loss on disposal of noncurrent assets

1959

Special sales promotion

850-

Estimated loss in value of securities

2,797

-

Liquidation loss on affiliated company

634

-

Other

244

15

4,547

75

Net income before taxes and other adjustments△ 1,676

12,009

Income taxes△ 2,579

2,637

Income taxes for prior periods

16,838-

Total income taxes

14,258

2,637

111

215

△ 16,046

9,156

Net sales

Non-operating income

Total non-operating income
Non-operating expenses

Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary loss

Minority interests in income
Net income

(3).Consolidated quartely statements of cash flows(Mil. Yen)
3rd Quarter FY2008

3rd Quarter FY2009( from April 1, 2008
to December 31, 2008 )( from April 1, 2009
to December 31, 2009 )Net cash provided by (used in) operating activities△ 1,676

12,009

3,671

4,271

Increase(decrease) in allowance for doubtful accounts

493

△ 830

Increase(decrease)in provision for retirement benefits

△ 117

48

△ 3,142△ 617

Interest expenses

282

56

Equity in (earnings) losses of affiliates

157

31

Loss (gain) on sales of property, plant and equipment

30

1

△ 26

△ 34

Net income before taxes and other adjustments
Depreciation and amortization

Interest and dividends income

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

2,797

4

Decrease (increase) in notes and accounts receivable-trade△ 24,972△ 6,523

Decrease (increase) in inventories△ 11,405△ 19,103

Increase (decrease) in notes and accounts payable-trade21,14915,310

Other, net

14,386

5,515

Subtotal

1,628

10,138Interest and dividends income received

2,247

1,109

Interest expenses paid

△ 278

△ 56

△ 4,546△ 2,518
1,693

Income taxes paid
Income taxes refund−

Prior year's taxes paid

△ 16,838−

Net cash provided by (used in) operating activities△ 17,788

10,366△ 67,579△ 80,957

Net cash provided by (used in) investment activities
Payments into time deposits
Repayments from time deposits

19,18091,312△ 3,440△ 2,868662

8

Purchase of intangible assets

△ 161

△ 661

Purchase of investment securities

△ 247

△ 408

Proceeds from sales of investment securities

1,137

510

Collection of loan receivables

40,82869

Other, net

△ 124

205

△ 9,743

7,211

7,352

△ 8,208−

600

Repayment of long-term loans payable△ 1,086△ 566

Cash dividends paid

△ 1,704△ 1,363

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

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

△ 15

△ 88

4,546

△ 9,627

Effect of exchange rate change on cash and cash equivalents△ 3,299

681

Net increase (decrease) in cash and cash equivalents△ 26,285

8,632

Cash and cash equivalents at beginning of period

57,10040,180−367

30,81449,180

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

Increase due to merger of non-consolidated subsidiary
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, 2008 - December 31, 2008)
Japan

N. America

Sales to outside customers

86,290140,671

Inter-segment sales

102,869

Total(Units: Million Yen)

Asia

Elimination Consolidated

EuropeTotal

359

12,773240,096−240,09626

144,49413

247,404(247,404)−

189,160

140,698

144,854

12,786

487,500(247,404)

240,096

2,340

1,638

2,397

△2,318

4,057

(784)

3,273

Net Sales

Operating

IncomeandLosses(△)

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

N. America

Asia

EuropeTotal

Elimination Consolidated

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, 2008 - December 31, 2008)
N. America
Overseas sales

171,124(Units: Million Yen)
Asia

Europe5,897

30,865

Other
5,418

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

71.3

N. America

2.4

12.8

180,227

2.3

Asia

Europe6,365

23,872

Other
7,122

Total
217,588
248,07372.6(6) Notes of remarkable changes in Shareholders Equity:
Not Applicable

88.8(Units: Million Yen)

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

213,306
240,096

Current Third Quarter (April 1, 2009 - December 31, 2009)

Overseas sales

Total

2.6

9.6

2.9

87.7

6. 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, 2008

From April 1, 2009

To December 31, 2008

To December 31, 2009

AmountAmountPercent

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

Percent

Percent％％

Audiovisual Equipment

181,684

75.7

186,772

75.3

2.8

Information Equipment

38,41716.0

42,361

17.1

10.3

Other Equipment

19,993

8.3

18,9397.6△5.3

240,096100.0

248,073

100.0

3.3

％

％

Total

％
Japan

By Region

26,78911.2

30,48512.3

13.8

N. America

171,12471.3

180,227

72.6

5.3

Europe30,86512.8

23,872

9.6

△22.7

Asia

5,897

2.4

6,365

2.6

7.9

Other Areas

5,418

2.3

7,122

2.9

31.4

Subtotal

213,306

88.8

217,58887.7

2.0

240,096100.0

248,073

100.0

3.3

ExportTotal(Note) Main Products by Type of Equipment
Equipment
Audiovisual Equipment

Main Products
LCD Television, DVD Player, DVD Recorder,
Blu-ray Disc Player

Information Equipment

Printer, Digital Still Camera

Other Equipment

Receiver-Related Electronic Equipment

(Reference) Change in Operating Results for the Most Recent Quarters
Fiscal Period Ending March 2010 (Consolidated)
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2009

July - Sept 2009

Oct - Dec 2009

Jan - March 2010

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

77,66889,42680,977−Gross Profit

15,23918,772

13,726−

Operating Income

3,706

6,362

1,477

−

Ordinary Income

4,081

5,506

2,453

−

Quarterly Net Income Before
Taxes and Other Adjustments

4,106

5,453

2,449

−

Quarterly Net Income/Loss

3,171

4,138

1,846

−

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

93.01

121.40

54.16

−

−

Fully Diluted Quarterly Net
Income per Share

92.42

120.53

53.73

−

−

Million Yen

Million Yen

Million Yen

Total Assets

210,089

214,067

216,613−Net Assets

136,253

135,948

139,813

−

Yen

Yen

Yen

3,970.00

4,080.52−

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2008

July - Sept 2008

Oct - Dec 2008

Jan - March 2009

Yen

Net Assets per Share

3,981.10

Million Yen

Fiscal Period Ended March 2009 (Consolidated)

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

59,44985,20995,436

62,681Gross Profit

12,336

15,278

10,2206,637

Operating Income

988

3,332

△1,047△ 1,863

Ordinary Income

4,448

1,544

△3,599△ 1,166

Quarterly Net Income Before
Taxes and Other Adjustments

3,967

579

△6,222△ 1,586△13,779

1,676△3,943△ 1,318

Quarterly Net Income/LossYen

Quarterly Net Income per Share△404.16

Fully Diluted Quarterly Net
Income per Share

−

−

Yen

49.18
−

−

Yen

Yen

△115.68△ 38.67

−

−

−

−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

227,888244,460

210,728

199,882

Net Assets

147,591

146,345

130,470

135,596

Yen

Yen

4,275.73

3,810.66

Yen

Net Assets per Share

4,312.60

Yen

3,963.72

from 2009. 4.1
to 2009.12.31

Page
1. Summary of 3Q (April to December) Consolidated Operating Results(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. Consolidated Operating Activities (April to December)(1) Sales by Equipment

2(2) Sales by Areas in Equipment

3(3) Sales by Equipment in Areas3

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

4(2) Sales by Equipment

4

1. Summary of Third Quarter Consolidated Operating Results(1) Operating Results, Financial Conditions（Units：100million yen, %）FY20083Q% toAmountSales
Net Sales

2,400 100.0

Operating Income
Ordinary Income

Full-Year% to Y / Y
Amount
Sales
%

6.3

32

1.4

23

1.0 △ 58.6

△ 160 △ 6.7

Net Income/Loss afterTax

Y/Y%

3,027 100.0

9.2

3Q
% to
AmountSales
2,480 100.0

Y/Y
%
3.3

Full-Year (Projection)% to Y / Y
AmountSales%
3,300 100.0

9.0

14

0.5

−

115

4.7

252.8

120

3.6

751.3

12

0.4

−

120

4.9

403.2

114

3.5

829.7

△ 173 △ 5.7

−

91

3.7

ー

87

2.6

−

154.7
−

FY2009Total Assets

2,107

−

−

1,998

−

−

2,166

−

−

−

−

−

Net Assets

1,304

−

−

1,355

−

−

1,398

−

−

−

−

−

（※） Yen−Dollar / exchange rate
（Units：Yen / Dollar）

FY20083Q

FY20093Q

Full-Year

Average Rate

102.4893.22

100.66Full-Year (Projection)
90.00(2) Profitability and Per Share Data etc.
FY20083Q

FY2009Full-Year

3Q

Full-Year (Projection)

（％）

15.8

14.7

19.2

18.6

Operating Income Ratio （％）

1.4

0.5

4.7

3.6

Gross Profit Ratio

Ordinary Income Ratio （％）

1.0

0.4

4.9

3.5

Shareholders' Equity Ratio （％）

61.7

67.6

64.2

-

Net Assets Per Share （yen）

3,810.66

3,963.72

4,080.52-

Net Income Per Share （yen）△ 470.66△ 509.33

268.57255.19

（％）

△ 6.9

△ 8.2

4.3

-

Return On Shareholders' Equity （％）△ 10.5△ 11.96.8-

Return On Asset(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY2008Full-Year

3Q
Y/Y
%

AmountCapital Expenditures

30

FY2009Amount△ 28.6

3Q
Y/Y
%

50

Y/Y
%

Amount2.0

33

Full-Year% to Y / Y
Amount
Sales
%

3Q
% to
AmountSales

FY20083Q% toAmount
Sales

Y/Y
%

Full-Year (Projection)
Y/Y
Amount
%

10.0

59

18.0

FY2009Y/Y%

Full-Year (Projection)% to Y / Y
AmountSales%

Depreciation Expenses

27

1.1 △ 30.8

36

1.2 △ 25.0

31

1.3

14.8

44

1.3

22.2

R&D

98

4.1 △ 10.9130

4.3 △ 11.696

3.9 △ 2.0

139

4.2

6.9

−1−

(4) Cash Flow
（Units：100million yen）

FY20083Q
Cash flows provided by operating activities

Income Before Income Taxes

FY20093Q

Full-Year
△

7

103

−

△

△ 32

120

−

49

42

−

24

△ 59

−

Depreciation Expenses

16
36

△ 197

OthersFull-Year (Projection)

△ 177

△

Cash flows used in investing activities

△

97

△ 107

72

−

Free Cash flows

△ 274

△ 114

175

−

Cash flows provided by financing activities

Effect of exchange rate changes△

on cash and cash equivalents
Net increase in cash andcash equivalents

45

△

25

△ 96

−

32

△

28

6

−

△ 169

86

−

△ 262

2. Consolidated Operating Activities(1) Sales by Equipment（Units：100million yen, %）FY2008

Audio Visual Equipment

3Q% toAmountTotal
1,816 75.7

3Q
Full-Year
Y/Y% to Y / Y% toAmountAmount
%
Total
%
Total
21.1
2,306 76.1
25.2
1,867 75.3

VCR

16

0.7 △ 56.8

DVD

344

Blu-ray Disc

108

4.5

Television

76

LCD Television

FY200920

0.7 △ 55.6

14.3 △ 19.8

402

−

122

4.0

3.2 △ 64.0

82

Full-Year (Projection)% to Y / Y
Y/YAmount
%
Total
%
2.8
2,522 76.4
9.4

10

0.4 △ 37.5

10

0.3 △ 50.0

13.3 △ 23.3

331

−

135

13.4 △ 3.8

410

12.4

2.0

5.5

25.0

195

5.9

59.8

2.7 △ 68.0

6

0.2 △ 92.1

6

1,029

42.9

41.7

1,342

44.3

49.6

1,246

21.1

1,710

243

10.1

150.5

338

11.1

193.9

139

5.6 △ 42.8

191

5.8 △ 43.5

Information Equipment384

16.0 △ 32.1

450

14.9 △ 30.7

424

17.1

10.3

519

15.7

Others

200

8.3

3.9

271

9.0 △ 3.0

189

7.6 △ 5.3259

7.9 △ 4.4

2,400 100.0

6.3

OthersTotal

3,027 100.0

−2−

9.2

50.2

0.2 △ 92.7

2,480 100.0

3.3

51.8

3,300 100.0

27.4

15.3

9.0

(2) Sales by Areas in Equipment（Units：100million yen, %）FY20083Q% toAmount
Total

Audio Visual Equipment
North America
EuropeY/Y%

FY2009Full-Year% to Y / Y
Amount
Total
%

3Q
% to
Amount
Total

Y/Y
%

Full-Year (Projection)% to Y / Y
Amount
Total
%

1,816

75.7

21.1

2,306

76.1

25.2

1,867

75.3

2.8

2,522

76.4

9.4

1,545

64.4

36.4

1,971

65.1

41.7

1,649

66.5

6.7

2,204

66.8

11.8

7.7 △ 25.5

211

7.0 △ 26.795

3.8 △ 48.4

114

184

3.4 △ 46.0

Asia and Others

1

0.0 △ 75.01

0.0 △ 66.7

6

0.3

500.0

7

0.2

600.0

Japan

86

3.6 △ 26.5

123

4.0 △ 22.6

117

4.7

36.0

197

6.0

60.2

384

16.0 △ 32.1

450

14.9 △ 30.7

424

17.1

10.3

519

15.7

15.3

North America154

6.4 △ 56.5

174

5.8 △ 56.8

145

5.8 △ 5.8

209

6.3

20.1

Europe121

5.0 △ 14.8149

4.9 △ 9.1

143

5.8

18.2

189

5.8

26.8

Asia and Others

107

4.5

64.6

122

4.0

58.4

125

5.1

16.8

114

3.4 △ 6.6

0.1 △ 50.050.2 △ 16.7

11

0.4

450.0

7

271

9.0 △ 3.0

189

7.6 △ 5.3

Information Equipment

Japan

2

Others

200

Total

8.3

3.9

2,400 100.0

6.3

3,027 100.0

9.2

2,480 100.0

3.3

259

0.2

40.0

7.9 △ 4.4

3,300 100.0

9.0(3) Sales by Equipment in Areas（Units：100million yen, %）FY2009FY20083Q% toAmountTotal

North America

Y/Y%

Full-Year% to Y / Y
Amount
Total
%

3Q
% to
Amount
Total

Y/Y
%

Full-Year (Projection)% to Y / Y
Amount
Total
%

1,711

71.3

14.2

2,161

71.4

19.3

1,802

72.6

5.3

2,419

73.3

11.9

Audio Visual Equipment

1,545

64.4

36.4

1,971

65.1

41.7

1,649

66.5

6.7

2,204

66.8

11.8

Information Equipment154

6.4 △ 56.5

174

5.8 △ 56.8

145

5.8 △ 5.8

209

6.3

20.1

12

0.5

0.0

16

0.5 △ 5.9

8

0.3 △ 33.3

6

0.2 △ 62.5

308

12.8 △ 21.3

364

12.0 △ 20.2239

9.6 △ 22.7

304

9.2 △ 16.5

Audio Visual Equipment

184

7.7 △ 25.5

211

7.0 △ 26.795

3.8 △ 48.4114

3.4 △ 46.0

Information Equipment121

5.0 △ 14.8149

4.9 △ 9.1

143

5.8

18.2

189

5.8

0.0 △ 66.7

1

0.0 △ 75.0
3.7 △ 6.8

OthersEuropeOthersAsia and Others

3

0.1

0.0

4

0.1

0.0

1

113

4.7

56.9

132

4.4

45.1

134

5.5

18.6

123

0.0 △ 75.01

0.0 △ 66.7

6

0.3

500.0

7

125

5.1

16.8

114

Audio Visual Equipment

1

Information Equipment

107

4.5

64.6

0.2

122

4.0

58.4

66.7

9

0.4 △ 18.2

3

268

11.2 △ 9.3

370

12.2 △ 10.3

305

Audio Visual Equipment86

3.6 △ 26.5

123

4.0 △ 22.6

117

Information Equipment2

0.1 △ 50.050.2 △ 16.7

11

242

8.0 △ 2.4

177

OthersJapan

Others
Total

5

180

7.5

3.4

2,400 100.0

6.3

3,027 100.0

−3−

9.2

0.1 △ 40.0
12.3

2

0.2

26.8

600.0

3.4 △ 6.6
0.1 △ 77.8

13.8

454

13.8

22.7

4.7

36.0

197

6.0

60.2

0.4

450.0

7

0.2

40.0

7.2 △ 1.7

250

7.6

3.3

3,300 100.0

9.0

2,480 100.0

3.3

3. 3Q (October to December) Consolidated Operating Activities(1) Operating Results（Units：100million yen, %）FY2008FY20093Q（Oct.−Dec.）% to Sales

Amount3Q（Oct.−Dec.）
Y/Y%

AmountY/Y%% to Sales

954

100.0

37.2

810

100.0

△ 15.2

Operating Income

△ 10

△ 1.1

−

14

1.8

−

Ordinary Income

△ 35

△ 3.8

−

24

3.0

−

Net Income/Loss afterTax

△ 39

△ 4.1

−

18

2.3

−

Net Sales（※） Yen−Dollar / exchange rate
（Units：Yen / Dollar）

FY2008FY20093Q（Oct.−Dec.）

3Q（Oct.−Dec.）

Average Rate

94.99

90.11

(2) Sales by Equipment（Units：100million yen, %）Amount

FY2008FY20093Q（Oct.−Dec.）

3Q（Oct.−Dec.）
Y/Y%% to Total

AmountY/Y%% to Total

779

81.7

49.8

585

72.2

△ 24.9

VCR

5

0.5

△ 58.32

0.2△ 60.0

DVD

105

11.0

△ 22.2

93

11.5△ 11.4Blu-ray Disc

32

3.4

−

26

3.2

△ 18.8

Television

19

2.0

△ 72.91

0.1△ 94.7

LCD Television

531

55.7

92.4

455

56.2

△ 14.3

Others

87

9.1

234.6

8

1.0

△ 90.8

Information Equipment

107

11.2

5.3

159

19.6

Others

68

7.1

9.7

66

8.2

Total

954

100.0

37.2

810

100.0

Audio Visual Equipment

−4−

△

48.6
△

2.9

△ 15.2

（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