Financial Results
Third Quarter (Apr.-Dec.)

of FY2016

February 13, 2017

FUNAI ELECTRIC CO.,LTD.
TSE 68390Ⅰ. Financial Results

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

FY20153Q

FY2016
3Q

Difference(Y / Y)-95

Net Sales

468

373

Operating Income-14-104(-3.0%)(-2.7%)

(－)

-13

26

39(Margin)(-2.9%)(7.0%)(－)

Net Income Attributableto owners of parent-102333(Margin)(-2.2%)(6.2%)(－)(Margin)

Ordinary Income

Average USD-JPY
Exchange Rate
Month End USD-JPY
Exchange Rate

121.44(-20.2%)

111.25

Sep.2015

Dec.2015

Sep.2016

Dec.2016

119.96

120.61101.12116.492

2. Summary of Nine-Month (Apr.-Dec.) 1（100 million yen）

FY2015Nine-Month

FY2016Nine-Month

1,333

1,034-72-46(-5.4%)(-4.5%)-85-48(-6.4%)(-4.7%)-90-53(-6.8%)(-5.1%)

121.63107.56Net Sales
Operating Income(Margin)

Ordinary Income(Margin)

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

Mar..2015

Dec.2015

Mar.2016

Dec.2016

120.17120.61112.68116.49Difference(Y / Y)-299(-22.4%)

2637

373

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

FY2015Nine-MonthFY2016
Nine-MonthDifference(Y / Y)

61935-3-14

Ordinary Income-85-48

37

Extraordinary income
Extraordinary losses

12831-9-7-81-46

35

97-2-90-53

37

Non-operating income
Non-operating expenses(note:1)(note:2)

Income before IncomeTaxes
Income taxes

Net Income Attributableto owners of parent(note:1 Non-operating income and expenses)

1

Foreign exchange
gain and loss 2

1Interestincome
FY2015 9M-2 -1
InterestPayments
FY2016 9M-4

(note:2 Extraordinary income and losses)
Extraordinaryincome

1231

Extraordinarylosses-1Others-8-14
FY2015 9M

FY2016 9M

4

4. Breakdown of Sales by Equipment
 AV Equipment: LCD TVs and DVD related products decreased.
 Info Equipment: Printers decreased due to slow sales of ink-cartridge for OEM.
 Others:Audio Accessories decreased.
（100 million yen）

1,333

Y / Y (Change)（100 million yen）

AV Equip-255(-22.1%)

DVD Equip-39(-18.5%)

TV Equip-216(-22.9%)

Information Equip-7(-15.4%)

Others-37(-27.6%)

Total-299(-22.4%)

1,034
1,154
AV
Equipment899
DVD：209
T V：945

Sales Composition
DVD：170
T V：729

Information
Equipment
OthersOthersInformation
3% 10%Equip.

42137
FY2015 9M

35
100

DVD

15%

FY2015

TV

72%

OthersInformation
Equip.
3% 10%DVD

16%

FY2016

TV71%

FY2016 9M5

5. Sales of DVD related Equipment
 Blu-ray player increased due to good sales.

209（100 million yen）

（100 million yen）

170

DVD Players

57

Y / Y (Change)

33
DVD Recorders

Blu-ray disc

Others49

77

26
FY2015 9M

2798DVD Players-24(-42.7%)

DVD Recorders-22(-44.4%)

Blu-ray disc+21(+28.1%)

Others-14(-54.9%)

Total-39(-18.5%)

12FY2016 9M
6

6. Sales of LCD Television Decreased due to the delay of New model and weak sales
caused by price competition.

945（100 million yen）

729

（100 million yen）

Y / Y (Change)

LCD TV945：- 216 （-22.9%）729

FY2015 9M

FY2016 9M

7

7. Sales of Information Equipment Decreased, because of lower sales of ink-cartridges for OEMbusiness.
（100 million yen）

4235
YoY Change (%)

Information
Equipment

Information
Equipment

42:-7 ( -15.4% )35

FY2015 9M

FY2016 9M88. Geographic Breakdown of Sales
 Americas: LCD TVs and Audio Accessories decreased.
 Japan:Blu-ray disc players for OEM had good sales.
（100 million yen）

（100 million yen）

1,333

Y / Y (Change)

1,034

Americas

1,075

Americas-262(-24.3%)

Europe-6(-43.0%)

Asia & Others-6(-69.7%)

Japan-25(-10.8%)

Total-299(-22.4%)

Sales Composition

813

EuropeAsia & Others

Japan

Asia&Others

14983235210Europe

JapanJapan

18%1%1%FY2015

Asia&Others

Americas 80%

20%
1%1%

FY2016

Americas

78%Europe

FY2015 9M

FY2016 9M
99. Operating Income Analysis (Y/Y)＊ Add-value=Sales – (Cost of sales + selling expenses)（100 million yen）

Y / Y (Change)

Operatingloss

Operatingloss△ 46
Decrease ofGeneralExpenses△ 72Sales
decrease△ 19
FY2015 9M

Increased ofAdd-value+ 34+11

FY2016 9M
1010. Financial Conditions（100 million yen）
（100 million yen）

Y / Y (Change)

1,814
1,541

Cash / Deposit
Accounts
Receivables

AssetsLiabilities
AndNet Assets

Inventories

5731,232
576

352

447
240

488

371

Fixed Assets
and Others407

Trade Payables

185

354
156

Accounts Payables
and Others

498

541

177
268
340
171
266

795
Net Assets

1,131

844

1,232
1,541

1,814

Assets- 582

・Cash / Deposit- 126

・Accounts Receivables- 175

・Inventories- 214

・Fixed Assets and Others- 67

Liabilities- 246

・Trade Payables- 14・Accounts Payables
and Others- 232

Net Assets- 336（ Equity Ratio
Dec.2015

Mar.2016

64.1%）

Dec.20161111. Inventories Trends

482
371

（100 million yen）
（100 million yen）

Finished products

268329Y / Y (Change)

227
193
Work in process

153

Finished products： - 136

Work in process： - 7814475

Dec.2015

Mar.2016

Dec.2016

3.1 months

3.0 months

2.2 months<Inventories Turnover>1212. Capital Investment, Depreciation and R&D
First Half
CapitalInvestment

Full Year

Depreciation

CapitalInvestment

R&D

Depreciation

R&D（ 100 million yen ）（ 100 million yen ）

80

120

Y/Y

Y/Y

Y/Y

+3-5-5

100

60
80

58

53
60

40

40

1920

25

2077

72

2016352423

2700
FY2015 FY2016
9M
9M

FY2015 FY2016
9M
9M

FY2015 FY20169M
9M

FY2015 FY2016

FY2015 FY2016

FY2015 FY2016(Forecast)(Forecast)(Forecast)1313. Revise FY2016 Forecast（単位：億円）FY2015
Actual

FY2016
PreviousForecast

FY2016
RevisedForecast

1,700

1,345

1,345

-105-40-69(-6.2%)(-3.0%)(-5.1%)

-136

-80

-78

(Margin)(-8.0%)(-5.9%)(-5.8%)Net Income Attributableto owners of parent-338-82-69(Margin)(-19.9%)(-6.1%)(-5.1%)Net Sales

Operating Income(Margin)

Ordinary Income

Average USD-JPY Exchange Rate

119.98104.36

Difference
Previous/Revised

0（0%）

-292

13108.17

14Ⅱ. Appendix
1. Quarterly Financial Summary
2. Quarterly Sales Trends by Equipment
3. Quarterly Sales Trends by Geography15

1. Quarterly Financial Summary of FY 2015 - 2016
（ 100 million yen ）FY2015FY2016

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Net Sales

378

487

468367

250

411

373

Operating Income-42-16-14-33-28-7-10(-11.2%)(-3.3%)(-3.0%)(-9.1%)(-11.5%)(-1.8%)(-2.7%)-37-33-14-52-58-1626(-9.8%)(-6.9%)(-2.9%)(-14.1%)(-23.4%)(-3.9%)(7.0%)-40-39-11-248-57-1923(-10.7%)(-8.1%)(-2.2%)(-67.6%)(-22.8%)(-4.6%)(6.2%)

115.05108.53102.90( Margin )Ordinary Income( Margin )Net Income
Attributableto owners of parent( Margin )Average USD-JPY
Exchange Rate

121.72121.72121.44111.2516

2. Quarterly Sales Trends by Equipment（ 100 million yen ）DVD Equipment

487
378

68

TV Equipment

Information Equipment

468
81

Others

411

367

373

54
60

53

365

47

329

251

69

250

270

314

255

160
1552

15
39

12
46

836

9
34

1Q

2Q

3Q

4Q

1Q

FY201512312Q

1435
3Q

FY201617

3 ．Quarterly Sales Trends by Geography

Americas487

EuropeAsia & Others（ 100 million yen ）Japan468
411

378

373

367

406

250

377

292

284

344

288

181
352179

174

482

1Q

2Q

3Q

46

FY2015311380

2
166

63

81

4Q

1Q

2Q

3Q

FY201618

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 Electric Co.,
Ltd. or the Funai Group, such as audio-visual devices and information communicationequipment, the economic conditions of both domestic and international markets, andfluctuations in currency exchange rates. Actual performance may greatly differ fromprojections included in this document because of the impacts of uncertainty in suchareas 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.

19