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Corporate Profile 20 13 7-7-1 Nakagaito, Daito, Osaka 574-0013, Japan Phone +81-72-870-4303 Fax +81-72-871-1112 http://www.funaiworld.com/
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Page 1: FUNAI e corporate2013work with partner companies at the construction stage to prevent accidents, ensuring that these products are supplied in a highly stable manner. Sales Launch of

C o r p o r a t e P r o f i l e 2013

7-7-1 Nakagaito, Daito, Osaka 574-0013, Japan

Phone +81-72-870-4303 Fax +81-72-871-1112

http://www.funaiworld.com/

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A Globally Expanding Digital Consumer Electronics MarketWhere Funai Realizes its Full Potential

C o n t e n t s

ChairmanTetsuro Funai Tomonori Hayashi

President and CEO

Main Products

TOPICS 2012–2013

Design

Production

Sales & Marketing

Research & Development

Corporate Overview

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Funai Electric provides the market with reasonably

priced, high-quality digital consumer electronics

in spite of the growing demand and the intense

competition that continue to drive prices downward.

We feel, however, that intense price competition

also presents us with an opportunity to realize

our full potential.

Since our founding in 1961, we have believed

in being innovative and sticking to the basics,

and Funai will renew its focus on improving

efficiencies in all business activities. Based on

market analysis, we will promptly develop

products to meet market and customer needs.

Furthermore, we will provide products in a timely

manner that will be superior in terms of cost

efficiency using our proprietary production system,

the Funai Production System (FPS), and the

optimization of production facilities.

In the year ending March 31, 2014, we will

strive to accelerate the Group’s globalization

further acquiring new businesses, taking the next

steps toward becoming a truly “global Funai.”

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LCD TVs

Display Business

High-Quality, Reasonably Priced Products for the WorldThrough the four business segments in which we develop products—Displays, Digital Media, Office Solutions and Others —

we consistently supply products globally under diverse brands but with high levels of quality and cost efficiency.

Funai aims to continue improving its competitiveness amid an upheaval in the digital consumer electronics industry.

In addition to continually improving quality and cost efficiency

since its founding, Funai’s strength lies in its exceptional supply

capabilities which have earned us an enormous amount of trust

throughout the digital consumer electronics industry.

Currently, we conduct business in four areas: Displays, which

handles LCD TVs; Digital Media, which handles DVD and Blu-ray

Disc-related products, among others; Office Solutions, which handles

printers; and Others, which handles the PHILIPS-brand audio

accessories we are rolling out, as well as antennas and other items

via Group company DX ANTENNA CO., LTD.

In our mainstay area, the Display Business, we provide the

market with five brands of compact to large LCD TVs sold in Japan

and overseas. In the Digital Media Business, the Company is

enhancing its lineup of Blu-ray Disc-related products through such

means as reinforcing its business under OEM* agreements. The

high quality and reasonable price of these products have been

well received both domestically and overseas and we proudly

maintain a top share in the North American market for LCD TVs

and in Japan for Blu-ray Disc recorders.

In the Office Solutions Business, we are increasing sales and

profits by maintaining strong relationships with OEM partners, as well

as by expanding sales of products we have developed ourselves.

The digital consumer electronics industry is going through

a period of significant upheaval. In terms of functionality, design

and price, South Korea, China and Taiwan are rapidly becoming

increasingly competitive. This situation, however, also presents us

with an opportunity to fully realize our potential. Funai’s focus will be

to increase its brand value and share by providing the market with

competitively priced products developed and produced quickly in

response to the various needs of consumers around the world.

* The manufacture and supply of products under the customer’s brand.

49.1%Net sales

Brands developed in Europe, India and Thailand

Brands developed in Latin America

Brands developed in North America

Audiovisual equipment brands

Brands sold in Japan by subsidiaryDX ANTENNA CO., LTD.

Audio accessoriesAntennas

Others Business

Printers

Office Solutions Business

62.5%Net sales

Net sales

6.2%

Net sales

12.7%

DVD/Blu-ray Disc-related products

Digital Media BusinessNet sales

18.6%

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T O P I C S  2012-2 013

January 2013

Installed in an office

Factory installation

July 2012

Funai reached an agreement to acquire from Philips its Lifestyle

Entertainment business, which handles items such as audio video

multimedia products, home communications products and accessories

products.

In September 2008, we entered into a brand licensing agreement

to take responsibility for sourcing, distribution, marketing and sales

activities involving Philips consumer televisions in the United States

and Canada. Following this agreement, in July 2012 Funai entered into

a sales agreement involving products with Philips that Philips

designed and developed through the LE business. We commenced

sales of these products in the United States, Canada and Mexico in

September 2012.

Philips maintains global sales channels in Europe, as well as in

emerging companies including those in Asia and South America. By

combining these sales routes with Funai’s strong routes in North

America, in addition to increasing the number of products it provides,

the current acquisition allows Funai to expand its sales area.

Agreement to Acquire Philips’ Lifestyle Entertainment (LE) Business

Funai entered an agreement to acquire from Lexmark its inkjet-related

patent rights and other related technologies, as well as assets. For

approximately 16 years, since July 1997, Funai has undertaken the

commissioned production of hardware for inkjet printers from Lexmark,

collaborating from the development stage.

In addition to patent rights, product development functionality and

technologies on printer-related products including inkjet cartridges,

which Funai has worked on with Lexmark for many years, particularly

in North America, we have acquired manufacturing functions and

technology, including an ink cartridge plant in the Philippines. Whereas

in the past we developed the hardware business merely through

commissioned production, this acquisition enables us to create a

system that consolidates our resources, including in the production

and sale of highly profitable ink cartridges.

Agreement to Acquire Inkjet-Related Technologies and Assets from Lexmark

The 2013 International Consumer Electronics Show (CES)

was held in Las Vegas, Nevada, for four days from January 8

to January 11, 2013.

The Funai booth was located in a hotel near the main venue.

Our booth contained PHILIPS- and MAGNAVOX-brand

products and technologies, showcasing our extensive lineup

and technological expertise and demonstrating our overall

capabilities. In particular, the PHILIPS booth displayed our

substantially increased our offerings of headphones and

other LE business products, attracting attention at the exhibition.

Exhibiting at the 2013 International Consumer Electronics Show

Funai sales subsidiary P&F

MEXICANA, S.A. DE C.V., received the 2012 Supplier of the Year Award

from Sam’s Club of Mexico for its

superior contribution to the

company’s sales.

Fifth Year of Co-Sponsorship of the U.S.–Japan Youth Baseball Exchange Program

April 2013

January 2013

October 2012

Funai has commenced the sale in Japan of e LIMO-brand LED lighting.

In addition to LED lighting’s advantages of having a long service

life and being energy saving, we manufacture these products at an overseas

factory where we have introduced the Funai Production System (FPS),

a proprietary manufacturing system. Consequently, we are able to sell

these products at a much more reasonable price than leading domestic

manufacturers. We conduct development and design in Japan, and we

work with partner companies at the construction stage to prevent

accidents, ensuring that these products are supplied in a highly stable

manner.

Sales Launch of e LIMOLED Lighting in Japan

Funai’s sales subsidiary, FUNAI CORPORATION,

INC., received from Walmart of the United States

the 2012 Supplier of the Year Award, as well as a

newly established General Award for responsibility.

Funai was chosen to receive these awards for

contributing to growth of Walmart’s business and

customer relationships, as well as for the

manufacture of highly sustainable products.

March 2013

March 2013

Funai Subsidiary Receives Two Awards from

Walmart of the United States

Funai Subsidiary Receives Award from Sam’s Club in Mexico

The Boston Red Sox Foundation is

an official charity run by the Boston

Red Sox baseball team. This is the

fifth consecutive year that Funai Electric has co-sponsored the

U.S.–Japan Youth Baseball Exchange program, which is

sponsored by the Boston Red Sox Foundation.

In July 2012, 12 players from youth teams in Kyoto and

Chiba visited Boston, where they participated in an

international exchange and enjoyed home stays, baseball

lessons, and other various activities.

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De s i g n

We are pursuing thorough cost efficiency at the design stage by various means, including in-house

production of core items, reducing part numbers and performing design at overseas facilities.

World-Class Price Competitiveness

We are working to cut costs by promoting in-house

production of core items, reducing the number of parts and

reviewing materials used. We are also reducing the number

of production processes to achieve substantial productivity

increases, using lead-free solder and making other

environmentally conscious moves, and pursuing designs

that make production easier.

We are also globalizing development by shifting design

responsibilities from Japan to our R&D facilities in such

locations as Malaysia, China (Shenzhen) and Singapore.

This structure will help us counter intense cost competition

in order to offer the world’s most reasonable prices.

38%

Overseas Employment Ratio for Design Staff (As of April 2013)

Part Number Reduction Case Study

1st Generation 2nd Generation 3rd Generation 4th Generation

JapanChina●

Malaysia

Singapore

●●

2011/4 2012/4 2013/4

17%Overseas Overseas Overseas

32% 38%

Tighter multilayer board

densification

Smaller single-layer board,

parts moved

to multilayer board

7 8

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Pr o d u c t i o n

Global Production System

Poland

Mexico

China

Thailand

Japan

* Consignment production plants

(China accounts for 1 of 2 locations)

Other

LCD TVsProducts related to DVDs and Blu-ray DiscsPrinters

LCD TVs

LCD TVs LCD TVs

*

*

PhilippinesPhilippinesPhilippinesInk cartridgesInk cartridgesInk cartridges

Funai Electric concentrates its production facilities in the most

appropriate locations and enhances cost competitiveness by

purchasing parts in bulk. In particular, our production facilities

are concentrated in the Asian region, where we have the ability

to competitively procure raw materials and parts as well as

secure a low-cost, high-quality labor force. Due to the recent

labor shortages and wage increases in China, we have

augmented our Thai plant. At the same time, we have acquired

land on the island of Luzon in the Philippines for a new

production facility and we expect to become operational in 2014.

In addition, in April 2013 we acquired an ink cartridge plant on

the island of Cebu from Lexmark.

We employ the Funai Production System (FPS) at all of

our plants. This system creates stresses on the production line,

such as by reducing the number of operators or increasing

the speed of the conveyor belt, until conditions are created

resulting in the stoppage of the production line. The FPS

creates these conditions in order to analyze what causes the

line to stop, then improves on those conditions that caused

the failure. By repeating this cycle, Funai expects to recognize

continuous improvements in productivity.

The Funai Production System (FPS) — our unique system of ongoing improvement where problems are

identified through stresses applied to production line— continually pursues improved productivity.

Endless Pursuit of Production Efficiencies

Ongoing Productivity Improvements With the Funai Production System (FPS)

(Funai Production System)

Apply stresses to production line

Identifyproblem

Introduceimprovement

Resolveproblem

6Countries,7Facilities

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The key to obtaining a top share in the North American

market, the largest market in the world, is creating close

relationships with the major mass retailers.

In Europe, we established sales offices in Hamburg,

Paris and Warsaw, and are working to strengthen relationships

with the major mass retailers in each country.

In Japan, we aggressively develop sales activities

through our subsidiary, DX ANTENNA CO., LTD.

Furthermore, in 2012 we established a local subsidiary

in Mumbai, India, and initiated sales there. Going forward,

we expect to increase sales in Latin America, including

Mexico. In addition to Thailand, where we commenced

sales in 2012, we plan to enter emerging markets that are

rapidly growing, such as those in the ASEAN and Near

and Middle East regions.

In addition, we plan to further expand our sales region

going forward by acquiring the LE business of Philips and

the inkjet-related assets of Lexmark.

Secondin North America

S a l e s & M a r k e t i n g

Funai Electric endeavors to maintain strong relationships with sales channels such as mass retailers,

around the globe and is proud to claim a top share in North America, the world’s largest market.

In 2012, we established a sales company in India. Going forward, we are also planning to enter high-growth

emerging markets in ASEAN countries and in the Near and Middle East.

Understanding Market Needs All over the World

Brand and Product Development

by Region

We sell LCD TVs and DVD and Blu-ray Disc-related products under the PHILIPS brand.

The FUNAI brand sells LCD

TVs and DVD and Blu-ray

Disc-related products.We sell LCD TVs under

the FUNAI brand.

The DX BROADTEC brand sells LCD

TVs and DVD and Blu-ray Disc-related

products. The DX ANTENNA brand

sells antennas.

L a t i n A m e r i c aE u r o p e

J a p a nWe are developing the market through

sales of LCD TVs and DVD and Blu-ray

Disc-related products under four

brands: FUNAI, PHILIPS, MAGNAVOX

and Emerson. We sell our products

through major mass retailers, such as

Walmart, Target.

N o r t h A m e r i c aN o r t h A m e r i c aN o r t h A m e r i c a

I n d i a

T h a i l a n d

19.3%Company A (South Korea)

14.0%Company B (United States)

6.2%

Company D (Japan)

10.2%

Company C (South Korea)

14.7%Funai Electric (Japan)2012年

5.4%

Company E (Japan)

We sell LCD TVs under the

FUNAI brand.

11 12

Share of LCD TV Shipments in 2012 *Source: NPD DisplaySearch

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Expanding into New Growth Markets

Re s e a r c h & D e v e l o p m e n t

The Funai Group manages the FUNAI ELECTRIC ADVANCED APPLIED TECHNOLOGY

RESEARCH INSTITUTE INC., which serves as a base for conducting leading-edge research

and technological development.

As a base for leading-edge technology development and a control center for

industry–academia and industry–industry R&D collaboration, the institute conducts research

related to energy, healthcare and next-generation displays.

FUNAI ELECTRIC ADVANCED APPLIED TECHNOLOGY RESEARCH INSTITUTE INC.:

A Group Company Responsible for the Development of Advanced Technology

supporting future products.A number of new patent portfolios are being created

that employ technology to combine equipment with dispersed functionality using the Internet. We will quickly introduce an intellectual property strategy that employs an open platform basis, representing a major change from a conventional intellectual property network based on standardization.

Given the rapid changes that are taking place in mobile network environments, we have entered an era of dispersed functionality over the Internet. We are pursuing technological developments that will make it possible to provide devices and services that make new lifestyles more bountiful than ever.

The Group pursues a wide range of development activities, spanning fundamental technologies to products. We are dynamically pursuing the development of elemental technologies that are slated for use in next-generation smart televisions, including high-definition LCD panel technologies, multivision, hybrid casting and wireless transmission technologies. In 2013, we began developing and

selling to telecommunications carriers products related to stick-type smart TV devices. These products employ a number of new technologies that differentiate us from competitors, such as video transmission technology for mobile devices. Going forward, this is expected to become a major growth field, in line with changes in the broadcast transmission framework.

Current Core Businesses

In line with the graying of society, demands are mounting for solutions that support seniors’ ability to proactively participate in society, as well as preventive healthcare devices and software. We are responding to this strong market demand by developing products that apply robotics technologies. We are participating in a project sponsored by Japan’s Ministry of Economy, Trade and Industry to promote the development and introduction of robotic nursing care devices. Through this effort, we are cooperating with and pursuing the development of safety and standardized

performance evaluations on leading-edge robotic care devices.Meanwhile, in the area of security and healthcare we are

focusing on the development of technologies for smart houses, which employ a variety of highly advanced automatic systems to provide living spaces that are healthy, safe and secure. In the field of sensor network technology, we are conducting research with multiple universities on systems and devices that combine body sensors and working to quickly commercialize these products.

Looking Toward the Future

Technology Related to Next-Generation Smart TVs

The Field of Healthcare/Life Management

In the field of optical disc devices, Funai has pursued leading-edge technology development and commercialization through its long years of involvement in Blu-ray Disc related products. We are applying the technology that we have cultivated in this arena to products that provide automotive–human interfaces. As a result, we plan to develop and commercialize human interface devices in

areas for which expectations for the future are high, such as electric vehicles and healthcare.

By making devices more sophisticated and easier to understand and operate than ever before, we are concentrating on the development of human interfaces that people will find more enjoyable and intuitive.

The Field of Automotive/Human Interfaces

The R&D Division promotes technical development involving the services and software that will be required during the era of cloud services and full-fledged broadband environments. We are also working on “ultra AV home electronics,” which feature superior human interfaces. The division is concentrating on the development of devicesand software that will help realize interfaces with a human touch. These are expected to be core technologies

13 14

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C o r p o r a t e D a t a

1961 20101965 1970 1975 1980 1985 1990 1995 2000 2005

Product Development Trends

Stereo Audio Components

1977~1985

Cassette Tape Recorders

1971~1985

TV/VCRCombos

1985~2007

CRT TVs

1986~2009

Cordless Phones

1983~1995Faxes

1988~2003Inkjet Printers

1997~

DVD Players

1999~

Blu-ray Disc Recorders

2009~

Laser Beam Printers

2000~

Projectors

2002~2007

LCD TVs

2002~

Digital Still Cameras

2004~2008

Tablet PCs

2011~

Blu-ray Disc Players

2008~

DVD Recorders

2004~

Transistor Radios

1959~1970

Open Reel-to-reel Tape Recorders

1963~1966

8 Track Car Stereos

1968~1979

CVC VCRs

1980~1982VHS VCP, VCRs

1983~

Air Conditioners

1994~2002Auto Bakeries

1987~1995

Profile

Name

Established

Head office

Phone

Fax

URL

Capital

Net Sales

Employees

Category

FUNAI ELECTRIC CO., LTD.

August 1961

7-7-1 Nakagaito, Daito,

Osaka 574-0013, Japan

+81-72-870-4303

+81-72-871-1112

http://www.funaiworld.com/

¥31,307 million (March 31, 2013)

¥192,008 million (Year ended March 31, 2013)

1,032(March 31, 2013 / Non-Consolidated)

Electrical Equipment

Display Business

LCD TVs

Digital Media Business

DVD Players / Recorders

Blu-ray Disc Players / Recorders

Office Solutions Business

Printers

Others Business

Audio accessories

Antennas

Major Business Operations

Members of the Board and Corporate Auditors and Officers

Members of the Board

Tetsuro Funai

Tomonori Hayashi

Yoshikazu Uemura

Jyoji Okada

Mitsuo Yonemoto

Yoshiaki Bannai

Corporate Auditors

Hiromu Ishizaki

Shinichi Komeda

Masahide Morimoto

Chairman

President and CEO

Director andExecutive Officer

Director and Officer

Outside Director

Outside Director

Full-time Corporate Auditor

Outside Corporate Auditor

Outside Corporate Auditor

Officers

Hirofumi Nagaoka

Hideaki Funakoshi

Shigeki Saji

Susumu Nojii

Kazuo Uga

Takeshi Ito

Sei Kono

Kiyoshi Chinzei

Tetsuhiro Maeda

Executive Officer

Officer

Officer

Officer

Officer

Officer

Officer

Officer

Officer

Main Office Technology Hall

History

Aug. 1961 FUNAI ELECTRIC CO., LTD. was established in Ikuno-ku,

Osaka capitalized at ¥20 million.

Mar. 1964 CHUGOKU FUNAI ELECTRIC CO., LTD. was established

as a production subsidiary in Fukayasu-gun (now

Fukuyama), Hiroshima.

Sep. 1976 The head office was relocated to Daito, Osaka.

May 1991 FUNAI CORPORATION, INC. was established as a sales

subsidiary in New Jersey, U.S.

Mar. 1992 HIGHSONIC INDUSTRIAL LTD. (now FUNAI ELECTRIC

(H.K.), LTD.) was established in Hong Kong, China.

Jan. 1996 FUNAI SERVICE CO., LTD. was established as a service

subsidiary in Higashi-Osaka, Osaka.

May 1996 HIGHSONIC INDUSTRIAL LTD. (now FUNAI ELECTRIC

(H.K.), LTD.) established H.F.T. INDUSTRIAL LTD. by

joint investment with a Japan company.

Feb. 1999 FUNAI ELECTRIC CO., LTD. was listed on the Second

Section of Osaka Securities Exchange.

Mar. 2000 FUNAI ELECTRIC CO., LTD. was listed on the First

Section of Tokyo Stock Exchange and the First Section

of Osaka Securities Exchange.

Nov. 2001 Acquired the majority stocks of DX ANTENNA CO., LTD.

in Japan.

Ju l . 2003 FUNAI (THAILAND) CO., LTD. was established as a

production subsidiary in Nakornratchasima, Kingdom

of Thailand.

Dec. 2003 HUANG JIANG PLANT in Dongguan City, Guangdong

Province started operations as a consignment

production plant in China.

Apr. 2004 FUNAI ELECTRIC ADVANCED APPLIED TECHNOLOGY

RESEARCH INSTITUTE INC. was established.

Oct. 2006 FUNAI ELECTRIC (POLSKA) Sp. z o.o. (now FUNAI

ELECTRIC EUROPE Sp. z o.o.) was established as

a production subsidiary in the city of Nowa Sol, Poland.

Oct. 2007 FUNAI SERVICE CORPORATION was established as

a service subsidiary in Ohio, U.S.

Jun. 2008 P&F USA, Inc. was established as a sales subsidiary in

Georgia, U.S., for PHILIPS brand consumer TVs.

Tetsuro Funai, President and CEO, assumed the post

of Chairman. Tomonori Hayashi, Senior Executive

Officer, assumed the post of President and CEO.

Apr. 2009 P&F MEXICANA, S.A. DE C.V. was established as a sales

subsidiary in Mexico.

Feb. 2012 Funai India Private Limited was established as a sales

subsidiary in Mumbai, India.

Jun. 2012 Zhong Shan Funai Electron Co. was established as a

production subsidiary in Guangdong Province, China.

Apr. 2013 Acquired FUNAI ELECTRIC CEBU, INC. (the former

Lexmark International (Philippines), Inc.) from Lexmark.

Stick-type smart TV device

2013~

LED Lighting

2012~

15 16

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Offices and Subsidiaries

Places of business Production subsidiaries Development subsidiaries

Key Financial Information (Consolidated)Funai Group Code of Conduct

All members of the Funai Group (hereinafter “We”) pledge to make a sincere

effort to observe the following code of conduct. Senior management recognizes

that it is their role to embody this code of conduct, and that they must take the

initiative and set an example for others in the company to follow. In the event

their conduct is in opposition to this code, it will be their responsibility to correct

themselves publicly and ensure such conduct is never repeated.

We shall develop and provide products and services useful to society with sufficient consideration for the safety and privacy of personal and customer information, and strive to earn the trust and satisfy the needs of consumers and customers while ensuring the healthy development of society.

We shall engage in fair, transparent and free competition and transactions while maintaining a healthy and proper relationship with politicians and political administrations.

We shall ensure management transparency and health through the timely, proactive and fair disclosure of Company information aimed at widening the communication channel with shareholders and greater society.

We shall maintain a safe and comfortable work environment where employee diversity, character and individuality are respected.

We shall respect fundamental human rights and do not engage in discriminatory actions or human rights violations. We do not sanction child labor or forced labor.

We shall voluntarily engage in initiatives aimed at mitigating environmental problems, which we see as common challenge facing all humanity, and recognize as a necessary activity of all corporations.

We shall aggressively promote social contribution activities as a good corporate citizen.

We shall firmly oppose anti-social forces or groups, block all ties with them and reject their undue claims.

We shall observe international law and local ordinances in terms of our international business activities, always respecting local cultures and customs to develop business efficiently.

June 22, 2012

Tomonori Hayashi President and CEO

June 22, 2010

Tomonori Hayashi President and CEO

Environmental and Occupational Health andSafety Charter

In keeping with our corporate commitment “to adopt continual product

improvements, to continually promote ever deeper trust, and to seek

further harmony and mutual prosperity,” all employees of Funai pledge to

remain aware of the need to protect the environment and to operate our

business in an environment-friendly manner.

We shall provide our customers with simple, high-quality products and

shall make an effort to use resources effectively, minimize waste, and reduce

our environmental impacts. In short, we remain committed to contributing

to a society that remains in harmony with nature.

We shall respect employee diversity, personality and individuality, and

provide an environment that is safe and conducive to work.

We shall practice ethical management and comply with all laws and regulations with respect to occupational health and safety.

We shall look into occupational health and safety risks in the workplace to prevent injury and illness to employees and visitors.

We shall make ongoing improvements to occupational health and safety management, while making an effort to improve occupational health and safety performance.

Conformance with laws, regulations and social norms

Respect for human rights, occupational health and safety

Environmental consideration

Construction of systems to ensure excellent product quality

Provision of parts, materials and services that are priced appropriately and competitively

Construction of systems to ensure certain delivery dates and stable supply

Conformance with laws, regulations and social norms

Respect for human rights, occupational health and safety

Environmental consideration

Optimal product quality and cost assurance

Construction of systems to ensure certain delivery dates and stable supply

Technological improvement

Confidential information management

Cooperation in reporting and auditing

Response to conflict mineral issues

We shall practice ethical management and comply with all laws and regulations.

We shall take the initiative in voluntarily eliminating the use of hazardous substances and shall offer environment-friendly products.

We shall establish goals for environmentally conscious design and shall offer environment-friendly products.

We shall implement initiatives to attain zero emissions.

We shall establish environmental goals, conduct periodic reviews, and implement continual improvements.

We shall provide all employees with environmental education and shall strive to adopt environmental improvements.

Basic IdeasThe Funai Group is responding to heightened societal demand for corporate

social responsibility (CSR) by performing its daily business activities on the basis

of the Funai Group Code of Conduct. We have established the basic policies

described below with regard to our parts and materials procurement activities.

•Conform with laws, regulations and social norms, and pay attention to

environmental preservation.

•Conduct fair and equitable transactions.

•Strive for mutual cooperation with business partners and build trust-based

relationships.

Basic Policy

In accordance with the above-mentioned basic policy, when selecting

companies as procurement partners the Funai Group gives priority to those

that satisfy the following conditions when commencing transactions.

Procurement Partner Selection Standards

From a CSR perspective, we ask our business partners to perform the following.

We also ask our customers’ business partners to understand the Funai Group

Procurement Policy and to make requests that will promote these items.

CSR Procurement

Occupational Health and Safety Policies

Environmental Policies

Funai and its Group companies is proactive in acquiring third-party

certifications related to quality, occupational health and safety, the

environment and information security.

Quality & ISO

Quality Management System (ISO 9001)

Occupational Health and Safety Management SystemOHSAS18001

Information Security Management System(ISO/IEC 27001:2005 JIS Q 27001:2006)

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6

1

2

3

HQ / FUNAI (THAILAND) CO., LTD. / FUNAI ELECTRIC EUROPE Sp. z o.o. /

CHUGOKU FUNAI ELECTRIC CO., LTD. / Zhong Shan Funai Electron Co./

FUNAI SERVICE CO., LTD. /DX ANTENNA CO., LTD.*1 /

HUANG JIANG PLANT*2

Funai Group Procurement Policy

Environment Management System (ISO 14001)HQ / FUNAI (THAILAND) CO., LTD. / FUNAI ELECTRIC EUROPE Sp. z o.o. /

CHUGOKU FUNAI ELECTRIC CO., LTD. /Zhong Shan Funai Electron Co./

FUNAI SERVICE CO., LTD. / DX ANTENNA CO., LTD.*1 /

HUANG JIANG PLANT*2

Information System Department in HQ /

Personnel and Administration Department in HQ /

Business Administrative Department in HQ /

Investor and Public Relations Department in HQ

HQ / FUNAI ELECTRIC EUROPE Sp. z o.o. /

Zhong Shan Funai Electron Co.

(*1) DX ANTENNA CO., LTD. was certified by the JQA.

(*2) The plants that undertake processing for Funai on consignment in China are acquiring certifications.

* Consignment Production Plants

Sales Composition by ItemSales Composition by Area

Japan

18.7%

Others

6.8%

Asia

1.9%

Europe

3.2%

North America69.4%

2013/3

192,0082013/3

192,008百万円

LCD TVs (Display Business)

62.5%

Printers (Office Solutions Business)6.2%

Audio accessoriesAntennas (Other Business)12.7%

DVD and Blu-ray Disc-related products (Digital Media Business)18.6%

2013/3

192,008

TOKYO BRANCH OFFICE1

2

FUNAI ELECTRIC ADVANCED APPLIED

TECHNOLOGY RESEARCH INSTITUTE INC.

Funai Electric R&D (Shenzhen) Co., Ltd.

FUNAI MALAYSIA R&D SDN. BHD.

FUNAI SINGAPORE PTE. LTD.

Sales subsidiaries

DX ANTENNA CO., LTD.

FUNAI CORPORATION, INC.

P&F USA, Inc.

P&F MEXICANA, S.A. DE C.V.

Funai India Private Limited

FUNAI ELECTRIC EUROPE Sp. z o.o.

Affiliated subsidiaries

FUNAI SERVICE CO., LTD.

FGS Co., Ltd.

FUNAI SERVICE CORPORATION

23

4

5

7

FUNAI ELECTRIC (H.K.), LTD.H.F.T. INDUSTRIAL LTD.

HUANG JIANG PLANT *Zhong Shan Funai Electron Co.Funai Electric R&D (Shenzhen) Co., Ltd.

8

2FUNAI ELECTRIC EUROPE Sp. z o.o.66

Funai India Private Limited

FUNAI ELECTRIC CEBU, INC.

2

5

P&F MEXICANA, S.A. DE C.V.

FUNAI (THAILAND) CO., LTD.

3 FUNAI MALAYSIA R&D SDN. BHD.

4 FUNAI SINGAPORE PTE. LTD.

3 FUNAI SERVICE CORPORATION

3

FUNAI CORPORATION, INC.4

P&F USA, Inc.

CHUGOKU FUNAI ELECTRIC CO., LTD.

FUNAI ELECTRIC (H.K.), LTD.

H.F.T. INDUSTRIAL LTD.

HUANG JIANG PLANT * 

Zhong Shan Funai Electron Co.

FUNAI ELECTRIC EUROPE Sp. z o.o.

FUNAI(THAILAND) CO., LTD.

FUNAI ELECTRIC CEBU, INC.

  

1

2

3

4

5

6

7

8

1

2

3

4

1

2

3

1

2

3

4

5

6

1

2

FUNAI SERVICE CO., LTD.

FGS Co., Ltd.

1

1

1

DX ANTENNA CO., LTD.

TOKYO BRANCH OFFICE

1 CHUGOKU FUNAI ELECTRIC CO., LTD.

FUNAI ELECTRIC ADVANCED APPLIED TECHNOLOGY RESEARCH INSTITUTE INC.

17 18


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