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

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7 Message from Management Improving Earnings by Strengthening and Expanding Existing Businesses while Developing New Fields and Markets Annual Report 2012 Tomonori Hayashi President and CEO
Results for the Year Ended March 31, 2012 Sales and Profits were Hit Not Only by a Major Falloff in Information Equipment Sales and the Slump in Japan, but also by the Thailand Floods Conditions were problematic in the consumer electronics market. Unexpectedly high yen appreciation and supply chain disruptions stemming from the Great East Japan Earthquake and flooding in Thailand depressed corporate results. Performance in Japan fell off in the wake of the home electronics eco-point system, and in Europe and the United States demand decreased for LCD TVs (one of Funai Electric’s main production lines). Also, in emerging markets, a driver of growth, the rate of expansion leveled off. As a result of the above factors, the Group posted net sales of ¥246.1 billion, a 16.8% decrease compared with the same period last year. On the profit front, operating income was ¥0.4 billion, down 40.2% year on year; ordinary income was ¥0.1 billion, down 86.5% year on year; and the net loss was ¥4.6 billion (the net loss for the same period last year was ¥1.1 billion). Results during the term were deeply impacted by the loss of the special stimulus afforded by the transition to digital terrestrial broadcasting described above. Also, although our plants suffered no direct damage in the Thailand floods, I believe the impact of the shortages of some parts caused us to miss a great opportunity to produce and sell DVD-related equipment. A drop in orders for inkjet printers from OEM customers also had an impact on our information equipment sector. We deeply regret the posting of losses for the second year in a row due to the aforementioned matters, as well as worsening extraordinary losses and costs resulting from corrective action taken under the Anti-Tax Haven Law. We deeply apologize to our stakeholders for having failed to meet their expectations. TOPICS Commencing New Business in the Environmental Energy Sector Manufacture and Sale of LED Lighting in China Funai has decided to enter the LED lightning market, which is slated for future expansion due to its products’ long life and power efficiency. This type of lighting is also expected to contribute to the preservation of the environment. To jump start its participation in this business, Funai established joint venture companies with CMET to manufacture and sell LED lighting. In doing so, Funai is establishing networks to manufacture and sell industrial LED lighting in China. Still, we are beginning to see steady results from the initiatives we have been executing since last year. By strengthening PSI* Management in the audiovisual equipment sector, we have been able to make broad year-on-year improvements in inventory levels for LCD TVs and the LCD panels that are their primary component. This will contribute to future profitability. * PSI stands for “Purchase, Sales and Inventory” Strategy The Funai Group’s strategy for growth rests on three pillars: focus on speed; superior quality and price competitiveness; improved sales and a return to profitability by making products that sell. Expanding and Strengthening Existing Businesses by Increasing Capacity at our Thai Plant and Building Stronger Relationships with OEM Customers The first step in our growth strategy is expanding and strengthening existing businesses. LED Tunnel Light LED MR16 Spotlight Annual Report 2012 8
Page 1 and 2: Annual Report 2012
Page 3 and 4: Funai’s Strengths Cutting Costs b
Page 5 and 6: 2007 2008 2009 2010 2011 2012 396,7
Page 7: Ratio of Overseas Design Staff Thai
Page 11 and 12: Outlook for the Year Ending March 3
Page 13 and 14: In-house production of core items O
Page 15 and 16: The FPS: Continuous Productivity En
Page 17 and 18: Electric Group. Full-time Corporate
Page 19 and 20: Environmental and Occupational Heal
Page 21 and 22: Management Discussion and Analysis
Page 23 and 24: Business Performance The year in re
Page 25 and 26: Financial condition Current assets:
Page 27 and 28: unique productivity improvement sys
Page 29 and 30: Financial Section Contents Consolid
Page 31 and 32: (Millions of yen) (Thousands of U.S
Page 33 and 34: Consolidated Statement of Comprehen
Page 35 and 36: Notes to Consolidated Financial Sta
Page 37 and 38: ecorded in the period in which the
Page 39 and 40: 4. LONG-LIVED ASSETS During the yea
Page 43 and 44: The stock option activity is as fol
Page 45 and 46: Pro forma information for leased pr
Page 47 and 48: transaction should be executed and
Page 49 and 50: 17. NET INCOME PER SHARE Informatio
Page 53 and 54: Independent Auditor’s Report Annu
Page 55: 7-7-1 Nakagaito, Daito, Osaka 574-0

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

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