Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2020
(JGAAP)
February 10, 2020
Listed company name Funai Electric Co., Ltd.
Securities code
6839
URL https://www2.funai.co.jp/
Representative
President and CEO
Hideaki Funakoshi
Inquiries
Director and Officer
Makoto Ueshima
Scheduled date of Quarterly Report: February 13, 2020
Scheduled date of Commencement of Annual Dividend Payment : –Quarterly Financial Results Supplementation: Yes
Quarterly Financial Results Seminar: No

Stock exchange listing Tokyo First Section

TEL 072-870-4395(Any fraction less than one million yen is rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2020 (April 1, 2019 to December 31, 2019)(1) Consolidated Operating Results(% shows year on year rates)

Net Sales

Q3 of FY ending March 31, 2020
Q3 of FY ended March 31, 2019

Operating Income(Loss)

Million yen%

Million yen

70,241
81,021(13.3)(25.5)(1,889)(484)

Net Income(Loss)
attributable to ownersof parent

Ordinary Income(Loss)%

Million yen

Million yen(1,478)(96)––(1,579)
702

–
–

–
–

(Note) Comprehensive Income
Q3 of FY ending March 31, 2020: (¥1,815) million (–%); Q3 of FY ended March 31, 2019: ¥1,196 million (–%)
Net Income(loss)
Per Share

Net Income(loss) Per Shareon a Fully Diluted BasisYen

Q3 of FY ending March 31, 2020
Q3 of FY ended March 31, 2019

Yen

–
–

(46.28)20.60(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen

Q3 of FY ending March 31, 2020
74,294
FY ended March 31, 201983,293(Reference) Shareholders’ equity Q3 of FY ending March 31, 2020: ¥52,209 million%

52,251
70.3
54,05764.9
FY ended March 31, 2019: ¥54,025 million

2. Dividends
Dividend per Share
1st Quarter

2nd Quarter

Yen

–
–

FY ended March 31, 2019
FY ending March 31, 2020
FY ending March 31, 2020
(Forecast)

3rd Quarter
Yen

0.00
0.00

Year-End

Annual

Yen

–
–

Yen

Yen

0.00

0.00

–

–

(Note) Revision of Annual Dividends Forecast in this 3rd Quarter: No
Funai Electric has not determined its dividend forecast for the fiscal year ending March 31, 2020, since fluctuations in exchange rates give great impact on its
consolidated net assets. Management will announce its dividend forecast for the fiscal year ending March 31, 2020 immediately after the Company determinesit.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)(% shows year on year rates)

Net Sales
Million yen

Full Year

Operating Income(loss)%

Million yen

85,000(19.5)(3,000)(Note) Revision to consolidated financial forecast: No%–

Net Income(loss)
Ordinary Income(loss) tributable to owners ofparentMillion yen(3,100)%–Million yen(3,200)Net
Income(loss)
Per Share
%

–

Yen

(93.79)

* Note(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No
In (Company name: –)Out (Company name: –)(2) Adoption of special accounting methods of Quarterly consolidated financial statements: Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes to Consolidated Financial Statements (3) Notes on
Quarterly Consolidated Financial Statements (Application of Special Accounting Treatment to the Preparation of Quarterly Consolidated
Financial Statements)” on page 8 of the attachment.

(3) Changes in accounting policies and estimates
1. Changes in accounting policies from revision of accounting standards : Yes
2. Changes in accounting policies from other reason: No
3. Changes in accounting estimates: No
4. Restatement: No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes to Consolidated Financial Statements (3) Notes on
Quarterly Consolidated Financial Statements (Change in Accounting Policies)” on page 8 of the attachment.

(4) Number of Shares Outstanding (Ordinary Shares)
1. Number of shares outstanding (including treasury stock)Q3 of the fiscal year ending March 31, 2020 36,130,796 shares
2. Number of shares of treasury stockQ3 of the fiscal year ending March 31, 2020 2,011,830 shares
3. The Average number of outstanding shares
Q3 of the fiscal year ending March 31, 2020 34,118,966 sharesFiscal year ended March 31, 2019 36,130,796 sharesFiscal year ended March 31, 2019 2,011,830 shares
Q3 of the fiscal year ended March 31, 2019 34,118,966 shares*Quarterly financial summary reports are not subject to the quarterly reviews by the certified public accountant or audit firm.
*Explanations and other special notes on the appropriate use of earnings forecasts:
1. Earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Group and certain
assumptions deemed to be reasonable, and are not a commitment made by the Group. Actual results may differ significantly from such statements due tovarious circumstances. For information regarding the assumptions that form the basis of the earnings forecasts and cautionary notes upon the use of theearnings forecasts, please refer to “(3) Consolidated Financial Forecast” of “1. Consolidated Financial Results” on page 3 of the Attachment.
2. The Group plans to post the presentation of financial results on its website promptly on the day of the results announcement.

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020

Attachment[Table of contents] ............................................................................................................................................................................................ 1
1. Qualitative Information ................................................................................................................................................................................... 2(1) Consolidated Financial Results .................................................................................................................................................................. 2(2) Consolidated Financial Position ................................................................................................................................................................. 3(3) Consolidated Financial Forecast ................................................................................................................................................................ 3
2. Consolidated Financial Statements and Notes ................................................................................................................................................. 4(1) Consolidated Statement of Financial Position............................................................................................................................................ 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income.............................................................................................. 6
Consolidated Quarterly Statements of Income
3rd Quarter FY2019 (April 1, 2019 to December 31, 2019 ....................................................................................................... 6
Consolidated Quarterly Statement of Comprehensive Income
3rd Quarter FY2019 (April 1, 2019 to December 31, 2019 ....................................................................................................... 7(3) Consolidated Quarterly Statements of Income ........................................................................................................................................... 8(Notes for Continuing Enterprises) ................................................................................................................................................... 8(Notes of remarkable changes in Shareholders Equity) ..................................................................................................................... 8(Adoption of special accounting methods of Quarterly consolidated financial statements) .............................................................. 8(Changes in accounting policies)....................................................................................................................................................... 8(Segment Information) ...................................................................................................................................................................... 9
3. Others ............................................................................................................................................................................................................ 10
Important Information about Going Concern Assumption ........................................................................................................................ 10-1-

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020

1. Qualitative Information(1) Consolidated Financial Results
In the United States, the Company’s main market, the economy entered its 11th year of expansion on the back of monetary measures,such as the cut of official interest rates by the US Federal Reserve Board (“FRB”) three times in 2019. Household spending remainedrobust, supported by a healthy labor market, a rise in wages, and strong consumer confidence. Meanwhile, capital investment andexports were still sluggish due to impediments, such as slow overseas economic growth and negotiations with China over theimposition of tariff increase. However, as overall economy continued to grow moderately, the FRB put off its 4th interest rate cut at
the end of 2019. In China, the economy was crawling along the bottom, buoyed by the Government stimulus measures. the U.S. andChina phase 1 trade agreement at the end of 2019 is expected to give positive impact on the economy of the both countries.
Although the Japanese economy continued to be relatively solid, consumer spending and industrial production lost momentum due
to a hike in the consumption tax rate in October 2019 and impact of typhoons. The agreement between the U.S. and China over trade
tariffs at the end of 2019 was forecast to ease trade tensions and overseas economy showed some signs of recovery. However, there
was a concern about risks associated with growing uncertainty arising from very strained situations in the Middle East.
Meanwhile, there was a concern about a new type of pneumonia occurring in China at the end of 2019 that might spread globally.
There was a possibility that the new disease would not only drive down the domestic demand in China, but also affect the global
economy including Japan. Furthermore, there was a concern that production activities by the Company’s business partners in Chinamight be affected by the spread of novel coronavirus pneumonia. The Company was carefully monitoring the development of thesituation to minimize the subsequent impact of the coronavirus outbreak.
Under these circumstances, the Funai Electric Group recorded net sales of ¥70,241 million, a decrease of 13.3% year on year. The
decrease was mainly attributable to the following factors: from the first quarter to the first half of the second quarter, sales of theCompany’s LCD TVs decreased due to the impact of a rise in imports of LCD TVs from China, since Chinese manufacturers rushed
to frontload shipments to the U.S. because LCD TVs became a subject to a tariff increase by the Trump administration (4th round);Chinese producers increased exports because demand for LCD TVs were weak in the Chinese market; and demand for LCD TVs
didn’t catch up with a high level of LCD panel supply by the Chinese LCD panel manufacturers, causing the LCD panel prices todecline, and consequently, product market prices fell. Although sales in the third quarter were almost in line with the plan, theCompany failed to make up the decrease in sales up to the second quarter. Meanwhile, the Group posted an operating loss of ¥1,889
million (versus an operating loss of ¥484 million in the previous year) due to the aforementioned fall in net sales and drop in sales
prices as well as the increase in expenses, such as sales cooperation money to cope with excessive inventory in the distribution
channel. Ordinary loss amounted to ¥1,478 million (versus an ordinary loss of ¥96 million in the previous year) and loss attributableto owners of the parent stood at ¥1,579 million (versus a ¥702 million profit attributable to owners of the parent in the previous year).
Results by regioni) Japan
Sales of the FUNAI brand products, such as flat TVs and BD recorders, also grew steadily in the year-end holiday shopping
season. This was mainly due to the following reasons: the Company’s efforts to renew and expand a lineup of its high-end
products including organic electroluminescent display (OELD) TVs; and the launch of CureNel, a nail art printer, in June 1,
2019. However, the decline in the unit price of LCD TVs gave negative impact on the Company’s results. Consequently, theCompany posted net sales of ¥26,002 million, a decrease of 5.1% year on year, and segment loss (operating loss) of ¥2,446
million, versus a segment loss (operating loss) of ¥68 million a year earlier.
ii) Americas
From the first quarter to the first half of the second quarter, imports of LCD TVs from China increased sharply. This was
because shipments of LCD TVs to the U.S. were frontloaded ahead of the imposition of additional tariffs on Chinese imports—
Made in China LCD TVs were a subject to the tariffs; and Chinese producers increased exports to the U.S. because demand for
LCD TVs decreased in the Chinese market. In addition, as demand for LCD TVs didn’t catch up with a high level of LCD panel
supply by the Chinese LCD panel manufacturers, LCD panel prices declined, causing the product market prices to fall further.
In the third quarter, LCD TV prices stopped falling and their inventory returned to the almost normal level. The Company saw
sales grow steadily in the year-end holiday shopping season, including the Black Friday sales. Consequently, the Company
posted net sales of ¥43,251 million, a decrease of 18.1% year on year, and segment income (operating income) of ¥269 million,
an increase of 244.9% year on year.
iii) Asia
Although sales of components decreased, sales of LCD TVs increased. As a result, the Company posted net sales of ¥989
million, a rise of 23.2% year on year, and segment income (operating income) of ¥141 million, a fall of 76.6% year on year.
iv) Other
As the Company terminated sales of ink-cartridge in Europe, it did not record any sales in this segment. Accordingly, segment
income (operating income) amounted to ¥98 million, versus a ¥18 million of segment loss (operating loss) in the previous year.
Meanwhile, this segment had been categorized as Europe till the consolidated fiscal year ended March 31, 2019. However, as its
importance decreased, the segment has been excluded from the reportable segment and classified as Other since the first quarterof the consolidated fiscal year ending March 31, 2020.

-2-

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
Results by product Segmenti) Audiovisual Equipment
In the audiovisual equipment segment, net sales decreased due to a fall in sales of LCD TVs. This was owing to excessive
inventories in the North American market caused by the trade friction between the U.S. and China and a drop in sales prices
caused by declining LCD panel prices from the first quarter to the first half of the second quarter.
Furthermore, overall sales of audiovisual equipment decreased, since the market of DVD and BD related products became
smaller due to the spread of video streaming services and sales fell at power center retailers. As a result, net sales of audiovisualequipment amounted to ¥63,624 million (a decrease of 14.5% year on year).
ii) Information Equipment
In the information equipment segment, sales of new products, such as nail art printers and CISS (large-capacity cartridge inkjet printers), increased, making up a fall in sales of cartridges for ink-jet printers and sales of label printers. As a result, net salesof information equipment amounted to ¥3,013 million (an increase of 14.9% year on year).
iii) Other Products
In other equipment segment, overall sales decreased due to a fall in sales of components, although sales of automotive backlightunits and medical and healthcare-related products, including CT for dental clinics and modules for the nursing care beds,
increased. As a result, net sales of other products amounted to ¥3,603 million, a fall of 9.3% year on year.
(2) Consolidated Financial Position
Financial conditions as of the end of the third quarter are as follows:
Total assets decreased by ¥8,998 million from the end of the consolidated fiscal year ended March 31, 2019. This was mainly due
to an increase of ¥3,658 million in notes and accounts receivable - trade and a decrease of ¥3,909 million in cash and deposits, adecline of ¥6,942 in merchandise and finished goods, and a fall of ¥1,381 million in raw materials and supplies.
Liabilities decreased by ¥7,192 million from the end of the consolidated fiscal year ended March 31, 2019, mainly due to a declineof ¥6,916 million in notes and accounts payable - trade.
Net assets decreased by ¥1,805 million from the end of the consolidated fiscal year ended March 31, 2019, mainly due to a decreaseof ¥1,580 million in retained earnings and a fall of ¥159 million in foreign currency translation adjustment.
(3) Consolidated Financial Forecast
The Group did not revise its forecast for consolidated financial results for the fiscal year ending March 31, 2020, which itannounced on August 5, 2019.
Note: The above forecasts are based on information currently available to the Group and contain risk and uncertainty. Actual results
may differ from these forecasts due to various factors including changes in the economic conditions of overseas markets suchas the United States, and significant fluctuations in product prices and foreign exchange.

-3-

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020

2. Consolidated Financial Statements and Notes(1) Consolidated Statement of Financial Position(Unit: Million yen)
Fiscal year 2018
(March 31, 2019)ASSETS
Current Assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent Assets
Property, plant and equipment
Intangible assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
TOTAL ASSETSLIABILITIESCurrent Liabilities
Notes and accounts payable - trade
Accounts payable included in other
Income taxes payable
Provision for product warranties
Other
Total current liabilities
Noncurrent Liabilities
Provision
Net defined benefit liability
Other
Total noncurrent liabilities
TOTAL LIABILITIES-4-

3rd Quarter FY2019(December 31, 2019)35,417
7,724
13,517681
11,0592,276(718)
69,95831,507
11,383
6,574
438
9,678
1,908
(538)
60,951

8,159
68

8,341
491

1,881
3,294
(68)
5,107
13,33583,293

1,859
2,718
(68)
4,509
13,34374,294

15,618
8,287
126
1,056
3,033
28,121

8,701
8,670
157
1,596
1,987
21,113

27
33
1,053
1,114
29,236

30
19
879
929
22,043Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
(Unit: Million yen)
Fiscal year 2018
(March 31, 2019)
NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Total net asset
TOTAL LIABILITIES AND NET ASSETS-5-

3rd Quarter FY2019(December 31, 2019)

31,30733,603
24,583(24,341)
65,15331,30733,60323,003(24,341)
63,573

1(11,609)480(11,127)31
54,057
83,293(4)(11,768)409(11,363)41
52,251
74,294Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
(2) Consolidated Quarterly Statements of Income and Comprehensive Income(Consolidated Quarterly Statements of Income)(3rd Quarter FY2019 (April 1, 2019 to December 31, 2019)(Unit: Million yen)
3rd Quarter FY2018
3rd Quarter FY2019(April 1, 2018 to(April 1, 2019 to
December 31, 2018)
December 31, 2019)
Net sales
81,021
70,241
Cost of sales
70,95562,979Gross profit
10,066
7,262
Selling, general and administrative expenses
10,5509,151
Operating income (loss)(484)(1,889)Non-operating income
Interest income
307
183
Dividends income
73
Dividends received–
187
Foreign exchange gains
280
109
Other
177
187
Total non-operating income
772
672
Non-operating expenses
Interest expenses
168Compensation expenses
247
233
Other
120
19
Total non-operating expenses
385
261
Ordinary income (loss)(96)(1,478)Extraordinary income
Gain on sales of non-current assets
35
112
Other
3
2
Total extraordinary income
39
114
Extraordinary loss
Loss on disposal of noncurrent assets
4375
Total extraordinary loss
43
75
Income (loss) before income taxes(101)(1,439)
Income taxes
(804)
139
Income (loss) before minority interests
702(1,579)Net income (loss) attributable to owners of parent
702(1,579)-6-

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
(Consolidated Quarterly Statement of Comprehensive Income)(3rd Quarter FY2019 (April 1, 2019 to December 31, 2019)(Unit: Million yen)
3rd Quarter FY2018
3rd Quarter FY2019(April 1, 2018 to(April 1, 2019 to
December 31, 2018)
December 31, 2019)
Income (loss) before minority interest adjustment
702(1,579)Other comprehensive Income
Valuation difference on available-for-sale securities(13)(5)
Foreign currency translation adjustment
504
(159)
Remeasurements of defined benefit plans, net of tax
2(71)
Total other comprehensive Income
493
(236)
Comprehensive income
1,196(1,815)(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
1,196(1,815)-7-

Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
(3) Consolidated Quarterly Statements of Income(Notes for Continuing Enterprises)
Not Applicable(Notes of remarkable changes in Shareholders Equity)
Not Applicable(Adoption of special accounting methods of Quarterly consolidated financial statements)(Calculate tax expense)
Tax expenses are calculated by multiplying income before income taxes by a reasonably estimated effective tax rate for income
before income taxes after application of deferred tax accounting.
(Changes in accounting policies)(Adoption of Lease (IFRS 16))
The Company’s overseas consolidated subsidiaries, excluding the United States, have adopted Lease, International Financial
Reporting Standards (IFRS) 16, from the first quarter of the consolidated fiscal year ending March 31, 2020. For the adoptionof IFRS 16, the Company employed the method of recognizing the cumulative impact due to the adoption of the standard on thecommencement date of adoption, which is permitted as an interim measure.
The adoption of this accounting standard had an immaterial impact on the consolidated quarterly financial statements.
(Adoption of Revenue from Contracts with Customers (US GAAP Topic 606))
The Company’s overseas consolidated subsidiaries that apply US GAAP have adopted Revenue from Contracts with
Customers (US GAAP Topic 606) from the first quarter of the consolidated fiscal year ending March 31, 2020. For the adoptionof Topic 606, the Company employed the method of recognizing the cumulative impact due to the adoption of the standard on
the commencement date of adoption, which is permitted as an interim measure.
As a result of the adoption of this accounting standard, notes and accounts receivable - trade increased ¥1,412 million andother in current liabilities increased ¥1,412 million on the quarterly consolidated balance sheet at the end of the third quarter ofthe current consolidated fiscal year. The adoption of this accounting standard had an immaterial impact on earnings for the third
quarter of the consolidated fiscal year ending March 31, 2020.

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Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020
(Segment Information)
I. 3rd Quarter of the last fiscal year (April 1, 2018 to December 31, 2018)
Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment(Units: Million Yen)
Reportable segment
Other
Adjustments
Consolidated
Total(Note 1)
(Note 2)
(Note 3)Japan
Americas
Asia
Total
Net Sales(1) Outside customers
27,39152,803803
80,99823
81,021–
81,021(2) Inter-segment sales
48,187
3,063
47,37898,630–98,630(98,630)–
Total
75,57955,86748,181
179,62823
179,651(98,630)
81,021
Segment income (loss)
(68)
78
605
615
(18)
597
(1,081)(484)(Note) 1. The Other segment includes business segments that are not included in reportable segments, such as Europe.
2. Adjustment of (¥1,081million) in segment loss includes the elimination of inter-segment transactions of ¥7 million,
corporate expenses of ¥52 million that are not allocated to each reportable segment, and adjustment of (¥1,140 million)
for inventories. Overall Group expenses are comprised of general administrative expenses that do not belong to a
specific reporting segment.
3. Segment income has been adjusted to operating income noted on the third quarter consolidated income statement.
II. 3rd Quarter of this fiscal year (April 1, 2019 to December 31, 2019)
1. Information Regarding Net Sales and Profit/Loss Conditions by Reporting Segment

Japan

Reportable segment
Americas
Asia

Total

Other
(Note 1)

Total

Adjustments(Note 2)

(Units: Million Yen)
Consolidated(Note 3)

Net Sales(1) Outside customers
26,002
43,251
989
70,241–
70,241–
70,241(2) Inter-segment sales
32,781
10,81436,71480,310–80,310(80,310)–
Total
58,78454,06637,703
150,552–
150,552(80,310)70,241
Segment Income (Loss)(2,446)269
141(2,035)98(1,937)47(1,889)(Note) 1. The Other segment includes business segments that are not included in reportable segments, such as Europe.
2. Adjustment of ¥47 million in segment loss includes the elimination of inter-segment transactions of (¥9 million),
corporate expenses of (¥585 million) that are not allocated to each reportable segment, and adjustment of ¥642 million
for inventories. Overall Group expenses are comprised of general administrative expenses that do not belong to a
specific reporting segment.
3. Segment income has been adjusted to operating income noted on the third quarter consolidated income statement.
2. Item concerning changes in reportable segment
From the first quarter of the consolidated fiscal year ending March 31, 2020, Europe, which was previously classified asa reportable segment, has been excluded from a reportable segment and included in Other, since its importance has decreased.
Meanwhile, the segment information for the third quarter of the consolidated fiscal year ended March 31, 2019 is preparedbased on the reportable segment classification for the third quarter of the consolidated fiscal year ending March 31, 2020.

-9-Funai Electric Co., Ltd. (6839) Consolidated Financial Results for Q3 of FY Ending March 31, 2020

3. Others
Important Information about Going Concern Assumption
The Funai Electric Group posted operating income, ordinary income, income attributable to owners of the parent and positive
operating cash flow in the consolidated fiscal year ended March 31, 2019. However, the Group recorded a significant operating loss,
ordinary loss, loss attributable to owners of the parent and negative operating cash flow in the consolidated fiscal year ended March
31, 2018 and posted operating loss, ordinary loss, and loss attributable to owners of the parent also in the third quarter of theconsolidated fiscal year ending March 31, 2020. Therefore, at the present moment, there are events or circumstances where
significant doubt arises as to the going concern assumption.
Since the Group’s balance of cash and deposits is sufficient to cover working capital for some time, there is no significant concern
about fundraising.
Furthermore, basing on its medium-term management policy formulated in the consolidated fiscal year ended March 31, 2019,
the Group has implemented the below-mentioned measures in stages in line with each business unit’s policy. Thus, the Group
believes that we will be able to eliminate the above-mentioned events or circumstances.
 Display Business (LCD-TVs)
・ Further increase its market share at new power center retailers and enhance its overall competitiveness in terms of quality andcost.
・ Reduce returns and disposals by strengthening its efforts to boost sales during the Christmas shopping season in North America
and improving its business processes for services in Japan and overseas.
・ Recover its market share by focusing on sales of advanced BS broadcast-compatible TVs in Japan and restructuring its
business model in Mexico.
 Digital Media Business (DVD and BD-related equipment)
・ Capture market share by pursuing a niche strategy with BD players in the North America market where competitors withdrew
from the business.
・ Expand the lineup of FUNAI brand products and strengthen cooperation with OEM suppliers in the Japanese market.
 Printing Solution business (Printer-related equipment)
・ Improve profitability by expanding sales of nail art printers under OEM brands and own brand.
・ Expand sales of large-capacity inkjet printers and label printers.
・ Expand sales by launching derivative products that employ microfluidics (trace fluid control technology) New Business・ Expand sales by broadening the lineup of vehicle-mounted products, such as backlights for automotive applications (edge typeand direct type).
・ Expand sales of medical and healthcare-related modules as well as dental CTs and secure revenue base.
・ Strengthen its alliance strategy through EV business and begin mass production and sales of new display-related products forbusiness use.
Accordingly, Funai judges that there is no significant uncertainty related to the going concern assumption as of the end of thethird quarter consolidated accounting period and has omitted the Notes on Going Concern Assumption from the consolidated
financial statements.

- 10 -

Contact information:

IR/Public Relations Office, Funai Electric Co., Ltd.
7-1, Nakagaito 7-chome, Daito City, Osaka, 5740013
TEL 072（870）4395 ･ FAX 072（870）2706