Presentation of Financial Results
Third Quarter (Apr.-Dec.) of FY2017

February 13, 2018

FUNAI ELECTRIC CO.,LTD.
TSE 6839

1

Ⅰ．Financial Results
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Summary of 3rd Quarter (Oct.-Dec.)
Summary of Nine-Month (Apr.-Dec.)
Summary of Nine-Month (Apr.-Dec.)
Break Down of Sales by Equipment
Sales of DVD related Equipment
Sales of LCD related Equipment
Sales of Information Equipment
Geographic Break Down of Sales
Operating Income Analysis (Y/Y)
Balance Sheet Conditions
Inventories Trends
Capital Expenditures, Depreciation Expenseand R&D Expenditures2

1. Summary of 3rd Quarter (Oct.-Dec.)(100 million yen)

FY20163Q

FY2017
3Q

Y/Y(Changes)-7Net Sales

373366

Operating Income-10-18-8(-2.7%)(-5.0%)(-)

26-22-48(7.0%)(-6.1%)(-)

23-24-47(6.2%)(-6.6%)(-)

111.25112.73(Margin)

Ordinary Income(Margin)

Net Income Attributable toowners of parent(Margin)Average USD-JPY Exchange Rate(-1.8%)

Month End Exchange Rate

Sep.2016

Dec.2016

Sep.2017

Dec.2017(USD/JPY)

101.12116.49112.73113.003

2. Summary of Nine-Month (Apr.-Dec.)(100 million yen)

FY2016Nine-MonthFY2017
Nine-Month

1,034

1,087-46-58(-4.5%)(-5.4%)-48-58(-4.7%)(-5.4%)-53-155(-5.1%)(-14.3%)107.56111.77

Net Sales
Operating Income(Margin)

Ordinary Income(Margin)

Net Income Attributable toowners of parent(Margin)Average USD-JPY Exchange Rate

Y/Y(Changes)+53(+5.2%)-12-10-102

Month End Exchange Rate

Mar.2016

Dec.2016

Mar.2017

Dec.2017(USD/JPY)

112.68116.49112.19113.004

3. Summary of Nine-Month (Apr.-Dec.)(100 million yen)

FY2016Nine-Month
Non-operating income
Non-operating expenses（note:1）

Ordinary Income
Extraordinary income
Extraordinary losses（note:2）

Income before Income Taxes
Income taxes

Net Income Attributableto owners of parent(note:1

Non-operating income and expenses)

FY2016 9M

2FY2017 9M

2Difference
(Y/Y)

353
30-2-48-58-1031

1
100-2+99-46-157-111

7-2-9-53-155-102(note:2

Extraordinary income and losses)

FY2016 9M

FY2017 9M

Foreign exchange
gain and loss

1001-4

InterestincomeFY2017
Nine-Month-1-1InterestPayments

03-1

1

Extraordinary
income1
Extraordinary
lossesOthers54. Break Down of Sales by Equipment
 AV Equipment: LCD TV Increased Info Equipment: Printers decreased due to slow sales of inkjet-printers and ink-cartridge
 Others:
Sales of electronic reception devices ceased due to the transfer of theDX antenna.
Y / Y (Change)(100million yen)

1,034

AV Equipment899
DVD：170
T V ：729

1,087

AV Equip+136(+15.1%)DVD Equip-18(-10.4%)

TV Equip+154(+21.1%)

Information Equip-9(-26.3%)

Others-74(-73.6%)

Total+53(+5.2%)

1,035
DVD：152
T V ：883

Sales Composition
Others10%

Information 3%
Equipment
Information
Equipment

Others35
100
FY2016 9M

2626

DVD16%

OthersInformation
Equipment 2%3% DVD
14%

FY20169M

FY2017
9M

T V 71%

T V 81%FY2017 9M
65. Sales of DVD related Equipment Decrease in DVD-related sales exceeded BD-related sales increase.

170
152
BD Recorders

53(100million yen)

Y / Y (Change)76
BD Players

4550
DVD

OthersBD Recorders+23(+44.8%)

BD Players+5(+9.4%)

DVD-40(-66.6%)

Others-6(-51.1%)

Total-18(-10.4%)

60

12206

FY2016 9M

FY2017 9M
76. Sales of LCD related Equipment
 Sales increased due to increase in unit price by upsizing the mainstream
size of LCD TV and exclusive sales of Yamada Denki in Japan.

883

729
(100million yen)

Y / Y (Change)

883

LCD TV: +154 (+21.1%)

729

FY2016 9M

FY2017 9M
87. Sales of Information Equipment Decreased due to decreased sales of ink-jet printers and ink-cartridges.

35(100million yen)

26
Y / Y (Change)
InformationEquipment: -9(-26.3%)

3526FY2016 9M

FY2017 9M

98. Geographic Break Down of Sales
 Americas: Decrease in DVD-related sales and ink-cartridge sales exceeded LCD TV
sales increase.
 Japan:
LCD TVs and Blu-ray disc recorders increased.
Y / Y (Change)(100million yen)

1,034

Americas

813

1,087

Americas-13(-1.6%)

Europe-4(-51.5%)

Asia & Others＋4(+142.5%)

Japan+66(+31.5%)

Total+53(+5.2%)

800
Sales Composition
Japan

83Europe
Asia & Others
Japan210

47276

Japan

20%
Europe 1%FY20169M

Americas

79%FY2016 9M

Asia &Others

25%

1% FY20179MAmericas

74%

FY2017 9M
109. Operating Income Analysis (Y/Y)(100million yen)

Y / Y (Change)
FY2016 9M

FY2017 9M

Operatingloss

Operatingloss

△ 46

△ 58
Add-valuedecrease
Fixed costdecrease△ 54+37
Sales
increase+511

10. Balance Sheet Conditions
Y / Y (Change)(100 million yen)

1,232

1,086
Cash / Deposit

AssetsLiabilitiesAnd
Net Assets

941

447
401

Accounts
Receivables

177

Inventories

268

156
262

334

123
319

Fixed Assets
and Others

340

267

165

Trade Payables

171

Accounts Payables
and Others

266

186
134

150
186

Net Assets

766605795

941
1,232

Dec.2016

1,086

Mar.2017

Dec.2017

Assets-291

・Cash / Deposit-113

・Accounts Receivables-54

・Inventories+51

・Fixed Assets and Others-175

Liabilities-101

・Trade Payables-21

・Accounts Payables
and Others-80

Net Assets-190(Equity Ratio64.2%)

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11. Inventories Trends

Y / Y (Change)

Finished products：-8Work in process： + 59Inventories Turnover period in months

3.1(100 million yen)

4.1

3.7

3.4

3.0

2.2

2.2

2.6

2.6

482
442

452

371
312

329
Finished products

268

262

215

253

227190Work in process

299319

198

185
193

154
227

153

144

122

10175

Dec.2015

Mar.2016

Jun.2016

Sep.2016

Dec.2016

199

108Mar.2017

Jun.2017

Sep.2017

134
Dec.2017

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12. Capital Expenditures, Depreciation Expense and R&D Expenditures

First Half

Full Year

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures

Y/Y-5

Y/Y-5

Y/Y
-6

(100 million yen)

CapitalExpenditures

Depreciation
ExpenseR&DExpenditures(100 million yen)

80

60

70
50

53
40

60

47
74

50

68
40

30

30
2020

19101420151030
2827

1900
FY2016 FY2017
9M
9M

FY2016 FY2017
9M
9M

FY2016 FY20179M
9M

FY2016 FY2017(Forecast)

FY2016 FY2017(Forecast)

FY2016 FY2017(Forecast)14

Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment

3. Quarterly Sales Trends by Geography15

1. Quarterly Financial Summary of FY 2016 - 2017（100 million yen）

FY2016Net Sales
OperatingIncome(Margin)

Ordinary Income(Margin)

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

FY2017

1Q

2Q

3Q

4Q

1Q

2Q

3Q

250

411373304

320401366-28-7-10-21-23-17-18(-11.5%)(-1.8 %)(-2.7%)(-7.1%)(-7.3%)(-4.3%)(-5.0%)-58-16

26-28-21-14-22(-23.4%)(-3.9%)(7.0%)(-9.4%)(-6.7%)(-3.7%)(-6.1%)-57-19

23-14-15-115-24(-22.8%)(-4.6%)(6.2%)(-4.7%)(-4.7%)(-28.9%)(-6.6%)

108.53102.90111.25112.85111.41111.16112.7316

2. Quarterly Sales Trends by Equipment
DVD Equipment

TV Equipment

Information Equipment

Others（100 million yen）

411

401
373

54

69

51

304
42250

320

366
51

50

47
314
255

328
211

160

934

12
31

1435

1635

1Q

2Q

3Q

4Q

FY2016299256

771210791Q

2Q
FY20173Q

173. Quarterly Sales Trends by Geography
Americas

EuropeAsia & Others

411

Japan

（100 million yen）

401373366304320

250
344304

288
216

219

277

181

2

3

166

163

1Q

2Q
FY2016

1114

2
2

1

2
1

81

85

9992

85

3Q

4Q

1Q

2Q
FY20173Q

318

Disclaimer

This document contains forward-looking statements and projections regarding
business performance which are not historical facts. Please note that these statements
are based on information relating to factors that may impact future businessperformance that was available for analysis at the time this document was printed.
These factors include industry trends relating to the business areas of Funai ElectricCo., Ltd. or the Funai Group, such as audio-visual devices and information
communication equipment, the economic conditions of both domestic andinternational markets, and fluctuations in currency exchange rates. Actualperformance may greatly differ from projections included in this document because of
the impacts of uncertainty in such areas as the competitive conditions of theelectronics industry, market trends, currency exchange rate, introduction and successof new products, and various other global conditions that may affect the tax systemand other systems.

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