Press Release
October 17, 2016
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
President and CEO: Tetsuhiro Maeda(Code No.: 6839 First Section of TSE)

Notice of the Recording of Non-Operating Expenses and Revisions to the Consolidated
Financial Forecasts for the First Six Months and Full Year
Funai Electric Co., Ltd. (“Funai” or the “Company”) hereby announces that it has recorded non-operating expenses in
the first quarter ended June 30, 2016, and revised the consolidated financial forecasts for the first six months ended
September 30, 2016 as well as the full fiscal year ending March 31, 2017, which were announced on May 16, 2016.

1. Recording of non-operating expenses¥2,938 million will be recorded as non-operating expenses due to foreign exchange losses that were incurred on theback of the depreciation of the Mexican Peso for accounts receivable denominated in Mexican Pesos, and theappreciation of the yen against the US dollar.

2. Revisions to consolidated financial forecasts(1) First six months (April 1, 2016–September 30, 2016)
Net sales
Forecast announced onMay 11, 2016
(A)

OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

Million yen

Million yen

Million yen

Million yenyen

77,9001,1004002005.86(196.37)

Revised forecast(B)

70,600(3,000)(6,900)(6,700)Change(B-A)(7,300)(4,100)(7,300)(6,900)Change(%)

(9.3)

－－－

(Reference) Actual figuresof the previous term

86,570(5,815)(7,093)(7,996)(First six months ended
September 30, 2015)

Net income
per share(234.36)(2) Full year (April 1, 2016–March 31, 2017)
Net sales

Operatingincome

Ordinary
incomeNet income
attributable toowners of parent

Net income
per share

Forecast announced on
May 11, 2016
(A)

Million yen

Million yen

Million yen

Million yenyen

172,000

4,300

3,500

1,400

41.03

Revised forecast(B)

134,500(4,000)(8,000)(8,200)(240.33)

Change(B-A)(37,500)(8,300)(11,500)(9,600)Change(%)(21.8)－－－

170,041(10,539)(13,653)(33,839)(Reference) Actual figuresof the previous term
(Fiscal year ended March 31,2016)(991.81)

3. Reasons for revising the consolidated financial forecasts for the first six months and full year(1) Actual performance of the first quarter and outlook of the second quarter
In terms of net sales, although we aggressively promoted the sale of LCD TVs, the average price dropped due tointensified price competition with competitors at regional mass retailers in North America, while sales volumes alsodecreased. The penetration of non-brand low-price products has accelerated in the Mexican market also, which led to asignificant drop in average market prices. As a result, we expect sales of the LCD TV business to be around 20% less thanthe plan at the beginning of the fiscal year.
The sales volume of inkjet printers has also fallen short of forecast due to price competition with competitors in theNorth American market.
In terms of operating income, the gross profit of LCD TVs dropped significantly due to the decrease in sales, inaddition to a surge in panel prices since May in particular, and inventory adjustment of older models. Operating incomeof information equipment decreased due to a drop in sales of ink cartridges.
Losses are expected to increase from the previous forecast for ordinary income and net income as well, owing to thenon-operating expenses incurred as mentioned in 1 above.

(2) Outlook of the third quarter and onward
We have also revised our forecast for net sales for the full year due to an outlook of continued price competition in
LCD TVs, panel prices remaining high, and a severe sales situation for inkjet printers in the third quarter and onward, inaddition to a revision of the US dollar exchange rate forecast from 112 yen to the dollar (forecast at the beginning of thefiscal year) to 103 yen.
Since a drop in sales is expected as described above, we will also revise our forecasts for operating income, ordinary
income, and net income.

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
Investors and Public Relations
E-mail: investor_relations@funai.co.jp