Press Release
August 5, 2019
To whom it may concern
Funai Electric Co., Ltd.
Hideaki Funakoshi

Representative Director,President and CEO(Code No.

6839 First Section of TSE)

Notice of Change in Consolidated Financial Forecast

Considering the recent trends of its business performance, Funai Electric Co., Ltd. (the “Company”)
hereby announces that the Company has revised its consolidated financial forecast for the second quarterand full-year of the fiscal year ending March31, 2020 (April 1, 2019 to March 31, 2020), released on May
13, 2019, as follow.
Details

1. Revision in consolidated financial forecast(1) The second quarter (April 1, 2019 to September 30, 2019)
Net income

Net sales

Operating

Ordinary(loss)

Net income

incomeincome

attributable to(loss) per(loss)(loss)

owners ofshareparent

Forecast released on May
13, 2019(A)¥million¥million¥million¥million¥

52,000(1,200)(1,200)(1,200)(35.17)

Revised forecast(B)

40,000(1,900)(1,900)(1,900)(55.69)(B - A）(12,000)

(700)

(700)

(700)

(23.1)－－－

46,731(1,645)

(181)

650

ChangePercentage change (%)(Reference) Previous yearresults(Second quarter of the fiscal
year ended March 31, 2019)19.07

(2) Full-year (April 1, 2019 to March 31, 2020)
Net income

Net sales

OperatingOrdinary(loss)Net income

incomeincomeattributable to(loss) per(loss)(loss)

owners ofshareparentForecast released on May¥million¥million¥million¥million¥13, 2019(A)

108,000

400

200

100

2.93

Revised forecast(B)

85,000(3,000)(3,100)(3,200)(93.79)(B - A）(23,000)(3,400)(3,300)(3,300)(21.3)－－－

105,549

682

1,392

2,613Change

Percentage change (%)(Reference) Previous yearresults(Full-year of the fiscal year
ended March 31, 2019)

76.59

2. Reasons of the revision(1) Second quarterAs “Made-in China” LCD TVs became a subject to a tariff increase by the Trump administration (4thround), Chinese manufacturers rushed to frontload shipments to the U.S. Furthermore, demand for
LCD TVs slowed down in the Chinese market. Consequently, exports of LCD TVs from China to theU.S. increased greatly, flooding the U.S. market in the short term. Therefore, the Company expectssales of its LCD TVs to decrease. Meanwhile, prices of LCD TVs are expected to continue declining
since LCD panel prices decreased due to intensifying competition in the LCD panel market caused by
the oversupply of LCD panels (exceeding demand for LCD TVs) by Chinese manufacturers.
Considering the above situation, the Company has revised its net sales forecast to ¥40,000 million
for the second quarter of the consolidated fiscal year ending March 31, 2019. Accordingly, operating
loss, ordinary loss, and net loss attributable to owners of parent are forecast to be ¥1,900 million,respectively, since the fall in net sales and sales prices squeezed profitability and sales promotion
expenses were incurred to deal with excessive store and warehouse inventories in the U.S.

(2) Full-year
The Company expects net sales to decrease in the full-year of the consolidated fiscal year ending
March 31, 2020, since intensifying sales competition for LCD TVs, etc., falling sales prices, and afurther decline in sales volume are likely to continue in the U.S., the Company’s main market, and themarket of BD related products is forecast to become smaller due to the spread video streaming
services and a rise in demand for smart TVs.
Meanwhile, in Japan, net sales are expected to be almost in line with its initial plan, since theCompany plans to totally revamp “FUNAI brand” product lineup, including 4K organic
electroluminescent display (OELD) TVs, to expand sales of nail art printers under OEM brand nameand its own brand name, and to launch products using its printer head technology. However, thesecannot make up for a decline in net sales in the North American market. As a result, the Company
forecasts to post net sales of ¥85,000 million, operating loss of ¥3,000 million, ordinary loss of ¥3,100million, and net loss attributable to owners of parent ¥3,200 million for the full-year of the consolidated
fiscal year ending March31, 2020.

Note: The above financial forecasts are based on currently available information as of today. The
actual financial performance, etc. may be different from forecasts due to various factors.