Press Release
November 6, 2017
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
P r e s i d e n t a n d C E O :Hideaki Funakoshi(Code No.: 6839 First Section of TSE)

Notice on Extraordinary Losses and Revisions to the Consolidated Financial
Forecasts for the First Six Months and Full Year
Funai Electric Co., Ltd. (the “Company”) hereby announces that at its Board of Directors’ meeting held today,
it has determined to post extraordinary losses and revise the consolidated financial forecasts which were
published on May 15, 2017 for the first six months ended September 30, 2017 as well as the full fiscal year
(from April 1, 2017 to March 31, 2018) as follows.
1. Posting of extraordinary losses (impairment loss)
Considering that profitability in the noncurrent assets owned by the Company and its consolidated
subsidiaries has diminished and there were signs of necessity of impairment, the Company examined future
recoverability. As a result, the Company has decided that the book value of those assets would be reduced to
the recoverable amount, and that the relevant reduction equivalent to 10,000 million yen would be posted as
impairment loss under extraordinary losses.

2.

Revisions to consolidated financial forecasts(1) First six months (April 1, 2017–September 30, 2017)
OperatingNet sales
incomeForecast announced on
May 15, 2016
(A)

Ordinary
incomeNet income
attributable toowners of parent

Net income
per share

Million yen

Million yen

Million yen

Million yenyen

81,400

600

700

400

11.72
(381.02)

Revised forecast(B)

72,100(4,000)(3,600)(13,000)

Change(B-A)(9,300)(4,600)(4,300)(13,400)

Change(%)(11.4)－－－(Reference) Actual figuresof the previous term
(First six months ended
September 30, 2016)

66,104(3,606)(7,490)(7,648)(224.18)

(2) Full year (April 1, 2017–March 31, 2018)
Net sales

OperatingincomeOrdinaryincome

Net income
attributable toowners of parent

Net income
per share

Forecast announced on
May 15, 2016
(A)

Million yen

Million yen

Million yen

Million yenyen

160,000

600

700

200

5.86

Revised forecast(B)

140,000(8,400)(8,000)(17,400)(509.98)

Change(B-A)(20,000)(9,000)(8,700)(17,600)

Change(%)(12.5)－－－

133,838(6,775)(7,726)(6,745)(Reference) Actual figuresof the previous term
(Fiscal year ended March 31,2017)(197.70)

3. Reasons for the revisions to consolidated financial forecasts(1) First six-month period (April 1, 2017 to September 30, 2017)
In terms of net sales, although we aggressively promoted the sale of LCD TVs, sales volumes fell significantly
due to intensified price competition with competitors at regional mass retailers in North America, and part ofsales for year-end shopping season was carried over to the second half of the fiscal year. Consequently, theCompany anticipates decreased net sales for the relevant period.
As to operating income and ordinary income, gross profit is expected to be pressed downward by thedecrease in sales, the delay of the drop in LCD panel prices more than assumed, and the price ofmemory-related in particular hovering at a high level in the semi-conductor components.
Net income attributable to owners of parent for the same period is expected to remain lower than theprevious forecast owing to the posting of extraordinary losses as mentioned in 1 above in addition to theabovementioned reasons.
(2) Full year (April 1, 2017 to March 31, 2018)
We have also revised our forecast for net sales for the full year on the back of an outlook of continued fierce
price competition of LCD TVs resulting in further drop in sales volume in the third quarter and onward.
Net income attributable to owners of parent is also expected to shrink owing to the decrease in profits
arising from a fall in sales of LCD TVs, and continued high prices of components and materials such as
memory-related are anticipated to put pressure on the profits. Consequently, the Company has also revised
the forecasts of operating income, ordinary income as well as net income attributable to owners of parent.

Note: The above forecasts are based on information available on the date of the announcement. Actual
results may differ from these forecasts due to various factors.

For further information, please contact
Investor and Public Relations OfficeE-mail: investor_relations@funai.co.jp