From April 1, 2009
To June 30, 2009

August 10, 2009
Funai Electric Co., Ltd.

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

Current Year First Quarter

From April 1, 2008
To June 30, 2008

From April 1, 2009
To June 30, 2009

AmountAmountPercent

Million yen

Net Sales%

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

Million yen％

59,449100.0

77,668

100.0

30.6

Operating Income

988

1.7

3,706

4.8

275.0

Ordinary Income

4,448

7.5

4,081

5.3

△ 8.2

3,967

6.7

4,106

5.3

3.5

△13,779

△23.2

3,171

4.1

―

Net Income before Taxes andOther Adjustments

Net Income /Loss after Tax

Net Income/Loss per Share△ 404.16

93.01

Notes:
Includes 13 consolidated subsidiaries and 2 affiliated companies accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 3-Month Period ended June 30, 2009
August 10, 2009

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Inquiries: Representative’s
President and CEO
Tomonori Hayashi
position and name
General Manager Business Finance HQ
Hisao Fuke
TEL: (072) 870-4395
position and name
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; August 12, 2009
1. First Quarter Consolidated Results for the Period Ending March 2010 (April 1, 2009 – June 30, 2009)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen

1st Quarter FY2009
1st Quarter FY2008

77,66859,449%Million yen

%

30.6
−

3,706
988

275.0
−

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted Basis

Yen

Yen

st

1 Quarter FY2009
1st Quarter FY2008

93.01△404.16

Million yen%

Million yen

△8.2
−

4,081
4,448

%

−
−

3,171
△13,779

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

Net Assets

Total Assets
Million yen

Million yen

Net Assets
Per Share%

1st Quarter FY2009
Fiscal Year End 2008

210,089
136,253
199,882
135,596(Reference) Shareholders’ Equity
1 st Quarter FY2009 ended June 30, 2009 135,726 million yen
Fiscal Year 2008 ended March 31, 2009
135,134 million yen

Yen

64.6
67.6

3,981.10
3,963.72

2. Dividends
Corresponding Period

Fiscal Year 2008
Fiscal Year 2009
Fiscal Year 2009
(Projection)stnd

1 Quarter

2 Quarteryen−

Dividend per Share
3rd QuarteryenYear end

Annual

0.00

yen
−

40.00

yen

40.00

yen

0.00

−

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
Six months ending Sep.30.2009

Operating Income Ordinary Income

Million yen%

174,500
340,000

20.6
12.3

Million yen%

5,500 27.3
6,000 325.7

Million yen%

5,300 △11.6
5,300 332.2

Net Income
Million yen

Net Income
Per Share%Yen

3,900 −
3,900 −

114.39114.39Full Year 2009
Note:
Revision of Forecast of Consolidated Results for the Six month period or the Full Year in this 1st Quarter;
Yes.
(Please refer to the announcement of the revised forecasts for the sixth month publicly released on August 10, 2009.)

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 June 30, 2009; 36,104,196shares
as of March 31, 2009; 36,104,196shares(2)Number of shares of treasury stock as of June 30, 2009; 2,011,416shares
as of March 31, 2009; 2,011,321shares(3)The Average number in the quarter of outstanding shares on June 30, 2009; 34,092,823shareson June 30, 2008; 34,093,150shares

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
After the “Lehman Shock” of last fall, the global economy fell temporarily into dangerous territory. Since then, however,the positive effects of the financial and fiscal policies introduced by developed countries and other major economies
have resulted in an escape from a potentially disastrous first quarter, although the state of the global economy remains
unclear.
In the household electric appliances industry, demand for LCD televisions (an industry indicator) continued to rise on a
global scale while prices showed a slight decline. On the other hand, the pressure to increase prices on LCD panels, themain component of LCD televisions, intensified.
As a result, first quarter group consolidated sales finished at JPY77,668 million (an increase of 30.6% from the same
period last year).
When broken down by product type, significant growth was seen in the LCD television business mainly due to theenhancement of the product line-up after the addition of the Philips brand in August 2008. In addition, DVD-related
products, in particular Blu-ray Disc players, which are anticipated to be a growth area in the future, also contributed to
improved sales. As a result, sales for the Group’s visual products sector finished at JPY60,629 million for the quarter(an increase of 45.5% from the same period last year).
In the information equipment sector, sales trends were mixed. On one hand printer sales grew as orders from OEM
customers increased, while on the other hand, sales of digital still cameras were non-existent as OEM customers did not
make any new orders in the first quarter. As a result, sales for the sector finished at JPY10,971 million for the quarter(an increase of 1.9% from the same period last year).
Further, sales of electronic devices for signal reception finished at JPY6,067 million for the quarter (a decrease of 13.4%
from the same period last year).
In terms of profits, operating income increased by 275.0% from the same period last year to finish at JPY3,706 million,
mainly due to the increased revenue stream arising from the introduction of Philips-branded products. Unfortunately,
ordinary income was not able to keep up with the level of operating income growth and finished at JPY4,081 million (adecrease of 8.2% from the same period last year) as currency gains fell in comparison to the same period last year.
Group quarterly net income finished at JPY3,171 million (for the same period last year, the Company generated aquarterly net loss of JPY13,779 million as it had to account for “retroactive corporate taxes” among other items).

2. Qualitative Information Relating to Consolidated Financial Position
Our financial position at the end of first quarter is described below.
Assets increased by JPY10,206 million as compared to the figure at the end of the previous consolidated fiscal year.
Specifically, trade notes and accounts receivable, goods and products, and raw materials and inventories increased by
JPY10,103 million, JPY3,171 million, and JPY2,140 million, respectively, while cash and cash equivalents fell by
JPY5,659 million.
Liabilities also increased by JPY9,549 million as compared to the figure at the end of the previous consolidated fiscal
year. Specifically, trade notes and accounts payable increased by JPY13,132 million, while short-term borrowing
decreased by JPY6,628 million.
Net assets increased by JPY657 million as compared to the figure at the end of the previous consolidated fiscal year.
Specifically, retained earnings and gains from other marketable securities increased by JPY1,807 million and JPY392
million, respectively, while the foreign currency translation adjustment account decreased by JPY1,607 million.

3 .Qualitative Information Relating to Consolidated Performance Forecasts:
Changes have been made to the consolidated performance forecasts for the first half ending September 30, 2009 thatwere previously announced on May 13, 2009.
Please refer to the announcement of the revised forecasts publicly released on August 10, 2009.
Note: Our performance forecasts include figures based on decisions according to the information available at the timeand 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 of financial
statements covering consolidated accounting for fiscal quartera. Simplified accounting procedure
The amount of allowance for depreciation and amortization is calculated by distributing the applicable amountfor the 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 forbuildings acquired on 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 theapplication of the tax effect accounting for before-tax net profits of the consolidated fiscal year, including thisfirst 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 preparationof 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 current first quarter
consolidated accounting period and had a degree of progress which can be calculated with a certain level ofaccuracy 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 theimplementation of 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
to have the action cancelled with the Osaka District Court on November 16, 2006, as we object to thiscorrective action.
Thereafter, on July 3, 2008, we received a written verdict on this case from the Administrative Review Officeof the Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed. This
arbitration is truly unfortunate and unacceptable. Currently, we are making every effort to assert the validityof 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 andDisclosures for Taxes” (Report No. 63 of the Auditing and Guaranteeing Work Committee of the JapaneseInstitute of Certified 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
for an 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 of our position to the court in the future. At present, the Osaka District Court is reviewing theaction 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 can only offer
reference figures at this time. As such, in regard to the consolidated fiscal years following the year of theinvestigation (i.e., the fiscal years ending March 2008 and those thereafter), a calculation to assess the impactof 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 the dividend income received from the Hong Kong
subsidiary for the fiscal years ended March 2008 and 2009 was estimated to be JPY700 million including
corporate, residential, and business taxes. Due to the aforementioned reason, however, the accounting
procedure for the figure relating to this effect has not yet been conducted.

5. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
1st Quarter FY2009(As of June 30, 2009)

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

90,84396,503

Notes and accounts receivable-trade38,947

28,844Merchandise and finished goods

24,097

20,925Work in process

1,965

1,635

Raw materials and supplies

10,257

8,116

Others

7,544

7,957

Allowance for doubtful accounts

△ 197

△ 273

Total current assets

173,458

163,709

Property, plant and equipment

16,344

16,025Intangible assets

5,410

5,647

Others

15,746

16,061

Allowance for doubtful accounts△ 870△ 1,561

Total investments and other assets

14,876

14,499Total noncurrent assets

36,631

36,173210,089

199,882

Notes and accounts Payable-trade41,28928,157

Short-term loans payable

6,310

12,938

Income taxes payable

930

1,623

2,578

2,191

Provision

458

302

Others18,032

15,168

Total current liabilities

69,60060,382

966

666

Provision

2,349

2,343

Others

919

894

4,235

3,904

73,83564,286

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Reserve for products guarantee

Noncurrent liabilities
Long-term loans receivable

Total noncurrent liabilities
TOTAL LIABILITIES(Mil. Yen)
1st Quarter FY2009(As oｆ June 30, 2009)

Fiscal year 2008
(As of March 31, 2009)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

111,855

110,047

Treasury stock△ 24,340△ 24,340

152,040

150,233293△ 98

Foreign currency translation adjestment△ 16,607△ 14,999

Total valuation and translation adjestments△ 16,313△ 15,098

Subscription rights to shares

29

17

Minority interests

497

443

TOTAL NET ASSET

136,253

135,596

TOTAL LIABILITIES AND NET ASSETS

210,089

199,882

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

(2).Concolidated quartely statements of income(Mil. Yen)
1st Quarter FY2008

1st Quarter FY2009( from April 1, 2008
to June 30, 2008 )
59,449( from April 1, 2009
to June 30, 2009 )77,668

Cost of sales

47,11262,429Gross profit

12,336

15,239Selling, general and administrative expenses

11,348

11,532988

3,706

Interest income

904

262

Dividends income

26

20

2,542

98

150

76

3,623

458

Interest expenses

74

30

Equity in losses of affiliates

70

25

Other

19

26

Total non-operating expenses

164

83

4,448

4,081

Gain on prior period adjustment

357-

Gain on sales of noncurrent assets

1-

Profit on Sales of Investment Securities

-

34

Other

28

7

Total extraordinary income

387

41

1

0

850

-

Loss on valuation of Investment Securities-

4

Liquidation loss on affiliated company

-

11

Other

16

0

Total extraordinary losses

868

16

3,967

4,106

851

881

Income taxes for prior periods

16,838-

Total income taxes

17,689

881

56

54

△ 13,779

3,171

Net sales

Operating income
Non-operating income

Foreign exchange gains
Other
Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on disposal of noncurrent assets
Special sales promotion

Income before income taxes and minority interests
Income taxes

Minority interests in income
Net income/ loss

(3).Concolidated quartely statements of cash flows(Mil. Yen)
1st Quarter FY2008

1st Quarter FY2009( from April 1, 2008
to June 30, 2008 )( from April 1, 2009
to June 30, 2009 )Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

3,967

4,106

Depreciation and amortization

1,228

1,365

Increase(decrease) in allowance for doubtful accounts

△ 185

△ 765

Increase(decrease)in provision for retirement benefits

△ 36

20

Interest and dividends income

△ 930

△ 283

Interest expenses

74

30

Equity in (earnings) losses of affiliates

70

25

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

△0

-

△ 26

△ 34

Loss (gain) on valuation of investment securities

124

Decrease (increase) in notes and accounts receivable-trade292△ 10,141△ 19,118△ 6,033

Increase (decrease) in notes and accounts payable-trade

11,77913,639Other, net

3,711

3,638

Subtotal

838

5,574

Interest and dividends income received

320

453

△ 71

△ 30

Income taxes paid

△ 4,508△ 1,721

Prior year's taxes paid

△ 11,297-

Net cash provided by (used in) operating activities△ 14,719

4,276△ 1,209△ 39,873

Loss (gain) on sales of investment securities

Decrease (increase) in inventories

Interest expenses paid

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

45,217△ 693△ 1,123

64

38

Purchase of intangible assets

△ 59

△ 144

Purchase of investment securities

△ 242

△ 25

Proceeds from sales of investment securities

1,111

184

Other, net

△ 18

△ 92

△ 1,048

4,180△ 2,819△ 6,493-600

Repayment of long-term loans payable△ 1,086△ 299

Cash dividends paid

△ 1,704△ 1,363△5△ 12

Net cash provided by (used in) financing activities△ 5,615△ 7,570

Effect of exchange rate change on cash and cash equivalents

1,643

4

Net increase (decrease) in cash and cash equivalents△ 19,739

890

Cash and cash equivalents at beginning of period

57,10040,180Cash and cash equivalents at end of period:

37,361

41,070Purchase 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

Other, net

(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 First Quarter (April 1, 2008 - June 30, 2008)(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

28,11328,220252

2,862

59,449−59,449Inter-segment sales

36,163

10

50,036

13

86,223(86,223)−

Total

64,27628,23050,2882,876

145,672(86,223)

59,449

338

703

1,509

△ 661

1,890

(901)

988

Net Sales

Operating

IncomeandLosses(△)

Current First Quarter (April 1, 2009 - June 30, 2009)(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

23,73652,492

119

1,321

77,668−77,668Inter-segment sales

41,846

8

44,076

1

85,932(85,932)−

Total

65,58252,50044,195

1,322

163,601(85,932)

77,668

1,716

2,908

1,579

△ 571

5,632

(1,925)

3,706

Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales

Previous First Quarter (April 1, 2008 - June 30, 2008)(Units: Million Yen)

N. America
Overseas sales

41,380Asia

Europe

1,297

7,148

Other
401

Consolidated sales
69.6

2.2

12.0

Current First Quarter (April 1, 2009 - June 30, 2009)

0.7

84.5

(Units: Million Yen)

N. America
58,847

Asia

Europe

1,814

6,102

Other
1,336

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

50,22859,449Ratio of overseas sales to consolidated sales (%)

Overseas sales

Total

Total
68,10077,668

75.8

2.3

7.9

1.7

87.7

(6) Notes of remarkable changes in Shareholders Equity:
Not Applicable6. Other Information
Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Previous Year First Quarter

Current Year First Quarter

From April 1, 2008

From April 1, 2009

To June 30, 2008

To June 30, 2009

AmountPercent

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

Percent

Percent％％

Audiovisual Equipment

41,67070.1

60,62978.1

45.5

Information Equipment

10,76818.1

10,97114.1

1.9

Other Equipment

7,010

11.8

6,067

7.8

△ 13.459,449100.0

77,668

100.0

30.6

％

％

Total

％
Japan

By Region

9,221

15.5

9,568

12.3

3.8

N. America

41,38069.6

58,84775.8

42.2

Europe

7,148

12.0

6,102

7.9

△14.6

Asia

1,297

2.2

1,814

2.3

39.9

Other Areas

401

0.7

1,336

1.7

232.4

Subtotal

50,22884.5

68,10087.7

35.6

59,449100.0

77,668

100.0

30.6

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

Main Products
LCD Televisions, DVD Players, DVD Recorders,
Blu-ray Disc Players

Information Equipment

Printers, Digital Still Cameras

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

77,668−−−Gross Profit

15,239−−−Operating Income

3,706

−

−

−

Ordinary Income

4,081

−

−

−

Quarterly Net Income Before
Taxes and Other Adjustments

4,106

−

−

−

Quarterly Net Income/Loss

3,171

−

−

−

Yen

Yen

Yen

Yen

Quarterly Net Income per Share

93.01

−

−

−

−

−

−

Fully Diluted Quarterly Net
Income per Share

92.42

−

−

−

−

−

−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

210,089−−−

Net Assets

136,253

−

−

−

Yen

Yen

Yen

−

−

−

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

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 2009.6.30

Page
1. Summary of 1Q Financial Statements（Consolidated）(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. Operating Activities（Consolidated）(1) Sales by Equipment

2(2) Sales by Areas in Equipment

3(3) Sales by Equipment in Areas

31. Summary of First Quarter Operating Results (Consolidated)(1) Operating Results, Financial Conditions（Units：100million yen, %）FY2008
1Q
AmountOperating Income%

Change Amount9

1.7 △ 15.744

7.5 △ 0.7%

Change Amount

3,027 100.0%

Full-Year (Projections)
Change Amount

9.2

776 100.0

30.6
275.0

14

0.5

−

37

4.8

12

%

3,400 100.0
60

Change
12.3

1.8

325.7

0.4

−

40

5.3 △ 8.2

53

1.6

332.2

△ 137 △23.2−△173 △ 5.7

−

31

4.1

−

39

1.1

−

Ordinary Income

Net Income/Los afterTax

1Q

Full-Year594 100.0 △ 23.2

Net Sales

FY2009Total Assets

2,278

−

−

1,998

−

−

2,100

−

−

−

−

−

Net Assets

1,475

−

−

1,355

−

−

1,362

−

−

−

−

−

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

FY2008FY2009Full-Year

1Q
Average Rate in each Period

105.43Full-Year (Projections)

1Q
100.66

96.75

95.00

(2) Profitability and Per Share Data etc.
FY20081Q

FY2009Full-Year

Full-Year (Projections)

1Q

(%)

20.8

14.7

19.6

17.4

Operating Income Ratio (%)

1.7

0.5

4.8

1.8

Ordinary Income Ratio

(%)

7.5

0.4

5.3

1.6

Shareholders' Equity Ratio (%)

64.5

67.6

64.6

−

(Yen)

4,312.60

3,963.72

3,981.10−

Net Income Per Share (Yen)△ 404.16△ 509.33

93.01

114.39Gross Profit Ratio

Net Assets Per Share

Return On Asset

(%)

△ 5.4

△ 8.2

1.4

−

Return On Shareholders' Equity

(%)

△ 8.2

△ 11.92.2−(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY20081Q

FY2009Full-Year

AmountAmountChange6 △ 76.9

Capital Expenditures

1Q
Change50

Amount

FY2008
1Q
Amount% to Sales

AmountChange12

2.0

Full-Year (Projections)
Change42 △ 16.0

100.0

FY2009Full-Year

Change Amount% to Sales

1Q
Change Amount% to Sales

Full-Year (Projections)
Change Amount% to Sales

ChangeDepreciation Expenses

9

1.5 △ 43.8

36

1.2 △ 25.0

10

1.3

11.1

58

1.7

61.1

R&D

32

5.4 △ 5.9130

4.3 △ 11.6

31

4.0 △ 3.1

142

4.2

9.2

−1−

(4) Cash Flow
（Units：100million yen, %）FY2009FY2008Full-Year

1Q

Full-Year (Projections)

1Q

Cash flows provided by operating activities

△ 147

△

7

42

−

Income Before Income Taxes

39

△

32

41

−

Depreciation Expenses

12

49

13

−

△ 198

△

24

△ 12

−

Cash flows used in investing activities

△

10

△ 107

41

−

Free Cash flows

△ 157

△ 114

83

−

Cash flows provided by financing activities

△

56

△

25

△ 75

−

16

△

28

0

−

△ 169

8

−

Others

Effect of exchange rate changes

on cash and cash equivalents
Net increase in cash and cash
equivalents△ 197

2. Operating Activities (Consolidated)(1) Sales by Equipment
FY2008
1Q
Amount%Full-Year
Change Amount417

70.1 △ 14.8

2,306

VCRs

6

1.0 △ 53.8

DVD

100

BD Players

21

3.5

Audio Visual Equipment

%
76.1

1Q
Change Amount

%

25.2

606

20

0.7 △ 55.6

3

16.8 △ 34.6

402

13.3 △ 23.3

122

15.7

−

122

4.0

−

38

4.9

2.7 △ 68.0

78.1

（Units：100million yen, %）FY2009Full-Year (Projections)
Change Amount

%

45.5

2,663

0.4 △ 50.07

0.2 △ 65.0

22.0

320

9.4 △ 20.4

81.0

254

7.5

15.5

108.2

Televisions26

4.4 △ 73.7

82

LCD Televisions

199

33.5 △ 2.0

1,342

44.3

49.6

343

44.2

72.4

1,898

Others

65

10.9

−

338

11.1

686.0

97

12.5

49.2

178

5.2 △ 47.3

Information Equipment

10718.1 △ 49.3

450

14.9 △ 30.7

109

14.1

1.9

470

13.8

Others70

11.8 △ 3.1

271

9.0 △ 3.061

7.8 △ 13.4267

7.9 △ 1.5

Total

594 100.0 △ 23.2

3,027 100.0

−2−

9.2

3

0.4 △ 88.5

78.3

Change776 100.0

30.6

6

0.2 △ 92.7
55.8

3,400 100.0

41.4

4.4

12.3

(2) Sales by Areas in Equipment
FY2008
1Q
Amount%Full-Year
Change Amount%

1Q
Change Amount%（Units：100million yen, %）FY2009Full-Year (Projections)
Change Amount%

Change417

70.1 △ 14.8

2,306

76.1

25.2

606

78.1

45.5

2,663

78.3

15.5

North America

349

58.7 △

8.6

1,971

65.1

41.7

546

70.3

56.4

2,394

70.4

21.5

Europe39

6.6 △ 44.3

211

7.0 △ 26.7

23

3.0 △ 41.0

143

Audio Visual Equipment

4.2 △ 32.2

Asia and Others

0

0.0

−

1

0.0 △ 66.7

0

0.0

−

0

0.0

−

Japan

29

4.8 △ 19.4123

4.0 △ 22.6

37

4.8

27.6

126

3.7

2.4

107

18.1 △ 49.3

450

14.9 △ 30.7

109

14.1

1.9

470

13.8

4.4

North America

62

10.4 △ 48.8

174

5.8 △ 56.8

40

5.2 △ 35.5

229

6.7

31.6

Europe31

5.3 △ 43.6

149

4.9 △ 9.1

38

4.9

22.6

167

4.9

12.1

Asia and Others

14

2.4 △ 61.1

122

4.0

58.4

28

3.6

100.0

74

2.2 △ 39.3

Japan

0

0.0

−

5

0.2 △ 16.7

3

0.4

−

0

0.0

Others70

11.8 △

3.1

271

9.0 △ 3.061

7.8 △ 13.4

267

Total

594 100.0 △ 23.2

Information Equipment

3,027 100.0

9.2

776 100.0

30.6−

7.9 △ 1.5

3,400 100.0

12.3(3) Sales by Equipment in Areas
FY2008
1Q
Amount%Full-Year
Change Amount%

1Q
Change Amount%（Units：100million yen, %）FY2009Full-Year (Projections)
Change Amount%

Change414

69.6 △ 19.4

2,161

71.4

19.3

588

75.8

42.2

2,623

77.1

21.4

Audio Visual Equipment349

58.7 △

8.6

1,971

65.1

41.7

546

70.3

56.4

2,394

70.4

21.5

Information Equipment

62

10.4 △ 48.8

174

5.8 △ 56.8

40

5.2 △ 35.5

229

6.7

31.6

Others3

0.5 △ 70.0

16

0.5 △ 5.9

2

0.3 △ 33.3

0

0.0

−

Europe71

12.0 △ 43.4

364

12.0 △ 20.2

61

7.9 △ 14.6

310

9.1 △ 14.8

Audio Visual Equipment39

6.6 △ 44.3

211

7.0 △ 26.7

23

3.0 △ 41.0

143

4.2 △ 32.2

Information Equipment31

5.3 △ 43.6

149

4.9 △ 9.1

38

4.9

22.6

167

4.9

12.1

Others

1

0.1

0.0

4

0.1

0.0

0

0.0

−

0

0.0

−

17

2.9 △ 55.3

132

4.4

45.1

31

4.0

82.4

74

2.2 △ 43.9

North America

Asia and Others

0.0 △ 66.7

0

0.0

−

0

0.0

4.0

58.4

28

3.6

100.0

74

2.2 △ 39.3

9

0.4 △ 18.2

3

0.4

0.0

0

0.0

−

3.9

370

12.2 △ 10.3

96

12.3

3.8

393

11.6

6.2

29

4.8 △ 19.4123

4.0 △ 22.6

37

4.8

27.6

126

3.7

2.4

Information Equipment

0

0.0

−

5

0.2 △ 16.7

3

0.4

−

0

0.0

−

Others

63

10.7

5.0

242

8.0 △ 2.456

7.1 △ 11.1

267

7.9

10.3

3,400 100.0

12.3

Audio Visual Equipment

0

0.0

−

1

Information Equipment

14

2.4 △ 61.1

122

Others

3

0.5

200.0

92

15.5 △

Audio Visual Equipment

Japan

Total

594 100.0 △ 23.2

3,027 100.0

−3−

9.2

776 100.0

30.6−

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS DEPARTMENT
7-7-1 Nakagaito Daito city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-874-8027