Annual Report 2012 [PDF:5300KB] - FUNAI Global

9
Message from Management
We are improving LCD TV profit
margins through inventory optimization
and expanding sales by increasing SKUs*
in North America.
We have also extended our brand
licensing agreement with Philips through
December 2015, and will continue
bolstering sales of PHILIPS-brand products.
We will seek to relieve our production
dependence on China and support our
entry into the Indian market by improving
capacity at our Thailand plant. We are
continuing to look at other possible
locations for production facilities.
In the DVD-related equipment
sector, we are strengthening relationships
with Blu-ray Disc recorder OEM clients,
as well as gaining profits from the
remaining VHS-capable equipment.
Our information equipment sector
activities include OEM production of
commercial laser printers.
*SKU: Abbreviation for stock-keeping unit, which
indicates a classic, standard unit.
TOPICS
Establishing a Sales Subsidiary in
India Active Participation in Emerging
Markets
Next, we are making forays into new
markets. Expanding sales in this way
helps avoid the current risk of leaning
too heavily on the U.S. market, while also
leveling production and sales so as to
reduce seasonal impact. We established
a local subsidiary in Mumbai, India, in
February 2012, and sales will commence
next term.
Going forward, we expect to increase
sales in Latin America, including Mexico.
We also plan to enter emerging markets
which are rapidly growing, such as the
ASEAN countries and the Near and Middle
East regions. Conversely, we have made
the comprehensive decision to revise
our position that prioritized cultivation
of the Brazilian market.
We will forego this development
for the time being.
Strengthening Our Patent Portfolio in the Audiovisual Equipment Sector
Funai Acquires Portfolio of 360 Patents from IPG
To strengthen our patent portfolio and enable us to respond to competitors’ patent claims, we
acquired a portfolio of patents related to TVs, decoders and display devices from IPG Electronics
503 Ltd.
The 360 patents purchased include 180 U.S. patents and 180 from other countries. These
patents can be used for products such as TVs, set-top boxes and DVRs*.The patents will provide
additional IP support for Funai’s television and related businesses.
*Digital video recorder (DVR): A generic term for such products as hard disk recorders
Annual Report 2012
Focusing on Environmental Energy,
Networks, and Device Modules over
the Medium to Long-Term
Our third step is to develop new
businesses. We consider environmental
energy, networks, and device modules
to be three areas that can support
future growth.
In the environmental energy sector,
we have entered the LED lighting market
in China. We expect to commence full-
fledged production and sales activities
in the upcoming fiscal year, and will work
to develop cost-competitive products.
In the network sector, we are
developing tablet manufacturing as an
OEM business, and in the field of device
modules we are developing products that
apply MEMS* technology.
*MEMS: Micro-Electro-Mechanical Systems