2021
Corporate Profile

｜ Corporate Philosophy ｜Corporate Philosophy Framework
The Fundamental Principle, Corporate Precepts, and Corporate Commitments are the foundation and supporting pillars of
our corporate activities, and clearly express the founding spirit.
The Corporate Philosophy and Group Vision were established in 2018, based on these pillars. They convey the corporate
image and guidelines for conduct, and evolve with the times and social conditions.

Fundamental Principle

Dream with Conviction,
and Act on Information
Management Philosophy

Challenge the company to grow by becoming
helpful in the community
Group Vision

Funai creates products that are the choice of people
around the world“Around the world,” as a global company“The choice,” aiming for top share in the industry“Creates products,” that people will love
Contents

1

Corporate Philosophy

1

Topics

Message from Chairman and CEO

3

Core Competencies

At a Glance 

4

ESG

Financial Highlights

5

ESG Topics

Business Description

6

History

8
9
11
14
15

Corporate Commitments

To adopt continual product improvements
To continually promote ever deeper trust
To seek further harmony and mutual prosperity
Corporate Precepts

Perseverance overcomes all difficulties.
Innovation is achieved through effort.
Humanity must eventually find its expression.
Corporate Precepts

Expand the triangle of knowledge, empathy,
and intention
The larger the triangle created from knowledge, empathy,
and intention expands, the more we grow as human beings
who are vessels for these qualities.
If this triangle does not grow larger, that means that we, as human beings,
have not grown even though we have grown older. For example,
when we pass the age of 30 or 40, we must increase our skills toa level appropriate to our age and improve ourselves as human beings.
The larger this triangle grows, the more a person can contribute to society.
(Source: Becoming President of Five Companies at the Age of 40 by Tetsuo Funai)

Tetsuo Funai, Founder
Corporate Logo
Our Corporate Logo, which shows a stylized “F” breaking out of its circular boundaries, expresses our focus on
breaking away from stereotypes, while at the same time symbolizing our vigorous growth.
The shape of the “F” resembles a human hand, connoting production and manufacturing. This shape is meant toconvey our high productivity and outstanding quality, with sharp angles to express simplicity.

Corporate Profile 2021

2

｜ Message from Chairman and CEO ｜Message from Chairman and CEO
Rebirth & Evolution

Koji Bando
Chairman and CEO

Funai Electric will celebrate our 60th anniversary this year,

models to survive in these challenging circumstances.

in 2021.

Establishing alliances with companies that possess

Throughout our history, we have delivered reasonably
priced, high-quality digital consumer electronics toplanning capabilities will also be vital in developing new

the market, including transistor radios, VHS videotape

businesses and new markets.

recorders, combo television units, inkjet printers, home

Funai Electric and all our employees are committed

fax machines, DVD players, BD players, and OLED TVs

to a process of “rebirth and evolution” into a company

with built-in HDD. We have also globalized our businessthat can create new value. To accomplish this, we willfrom an early stage, developing markets in regions

leverage our core competence in manufacturing, whichsuch as North America and providing products withhas sustained the company for over 60 years, andcompetitive edges compared to other companies.

put our company motto of “better products, greater

The rise of Chinese TV manufacturers has causeda fierce price war in the TV market, which is now facing
increasingly intense competition. The rapid proliferationof information technologies and the Internet has alsosignificantly transformed business practices, lifestyles,
and social structures.
It is critical to keep pace with our customers’ needs
and demands and build marketing and development
capabilities to enable prompt delivery of new products
and services by adopting new technologies and business3

desirable technologies, funds, human resources, andconfidence, more meaningful coexistence and coprosperity” into practice.

｜ At a Glance ｜At a Glance
Net sales

*1

80.4

bn yenAmericas % of total
consolidated sales*1

63

Shareholder distribution*2
Treasury Stock
2,011,000 (5.57%)
Other Corporationsin Japan
5,429,000 (15.03%)%

ForeignCompanies, etc.
7,443,000 (20.60%)

Securities Companies
in Japan
1,638,000 (4.54%)

No. of shares:

36,130,000

Individuals andOthers in Japan
16,214,000 (44,88%)

Financial Institutionsin Japan
3,393,000 (9.39%)*1 Consolidated results for fiscal year ended March 31, 2021
*2 As of March 31, 2021

Net Sales

5% 4.2

5% 3.8bn yenOffice Solutions Businessbn yenDevelopment and New Businesses

Backlight units for installation in vehicles
Nail art printer

Net Sales

80.4(¥ billion)

76% 61.4

bn yen

Display Business

14% 11.0

bn yenDigital Media Business

HD Blu-ray

65-inch Android TV™ for the U.S. market

Corporate Profile 2021

4

｜ Financial Highlights ｜Financial Highlights
Net Sales(¥ million)
150,000
133,838

Sales by Region

Operating Income

130,130(¥ million)

（%）

2,000

100

0
105,549

100,000

682-2,00088,42580,44866-4,00040-6,775-8,000FY2016FY2017FY2018FY2019FY2020-12,000

73
61

63

36

35

60

32

26

22

20

-10,000
0Japan-1,732-6,00050,000EuropeAsia, et al.

77

80

-328

Americas-10,885
FY2016FY2017FY2018FY2019FY2020

0

1

1

2

3

2

0
FY20160
FY20170
FY20180
FY20190
FY2020Net sales declined 9.0% YoY to80,448 million yen. Although sales
of LCD televisions in the U.S. market
remained strong through the third
quarter, the decline in net sales was
mainly due to the lack of special
sale products for the year-end sales
campaign and the steep rise in price of
LCD panels in the fourth quarter, whichcaused deterioration in the profit margin
and adjustments to sales volume.

The steep rise in the price of LCD
panels from the fourth quarter pushed
the operating margin downward,
despite improvement in the operating
margin in the LCD television businessin the U.S. This was the main factor
behind the operating loss of
328 million yen.

Sales in the Americas increased by
two percentage points to 63%
of total sales, while sales in Japandecreased by one percentage point
to 35% of total sales.

Net Income (Loss) Attributableto Owners of Parent

Shareholders’ Equity/Equity Ratio

Capital Expenditures and Depreciation
Expenses

Shareholders’ equity

Capital expenditures
Depreciation expenses

Equity ratio(¥ million)
5,000

2,613

0
-2,392-5,000-10,000-12(¥ million)（%）(¥ million)

100,000

100

5,000

80

4,000

60

3,000

40

2,000

80,00076,507

72.4
63.2-6,74560,000-15,000

64.9

70.2

70.4
50,69954,025

51,144

51,772

4,098

3,070
2,156 2,258-20,000

40,000-25,000

1,447
1,212
1,102
974
839

1,424

-24,709-30,000

20,000

20

1,000

0

0

-35,000-40,000

FY2016FY2017FY2018FY2019FY2020The net loss attributable to ownersof parent was 12 million yen. This
mainly resulted from the recognitionof an extraordinary gain on the sale ofpatents and the lump-sum amortizationof goodwill of a consolidated
subsidiary.

50FY2016 FY2017 FY2018 FY2019

The equity ratio decreased 2.2
percentage points to 70.2%,
compared to last fiscal year.

FY2020FY2016FY2017FY2018FY2019FY2020Capital expenditures fell by
600 million yen compared to last
fiscal year, to 800 million yen.
Depreciation expenses decreasedby 100 million yen compared to last
fiscal year, to 1.1 billion yen.

｜ Business Description ｜Supplying Simple, High-quality Products to the World

7030 Series
OLED TV equipped with an internal hard disk drive

Since our company was established, Funai Electric has
demonstrated the ability to develop and supply productsof superior quality and cost-performance, and has built a
reputation of solid reliability in the global digital consumer
electronics market.
Today we are engaged in a broad range of businesses
in four business segments: The Display business, which
provides flat-screen televisions; the Digital Media business,
which provides BD (Blu-ray Disc) related products; the Office
Solutions business, which provides printer-related equipment;
and Development and New Businesses, which develops andmanufactures dental CT scanners, products for installation in
vehicles, and other high-quality products.
In our main Display business, we supply four brands offlat-panel televisions in a variety of sizes from small to large.
In our Digital Media business, we supply BD (Blu-ray Disc)related products. We supply these products to Japan andNorth America, respectively. We are recognized for our pricecompetitiveness and capacity to supply these audiovisual
products and are particularly proud of our top-ranked shareamong Japanese manufacturers in flat-panel televisions in the
North American market.
Funai utilizes the ink cartridges and printer products wedeveloped ourselves in our Office Solutions business and thestrong partnerships with our OEM (consignment manufacturing)customers in our Development and New Businesses segment
to develop, manufacture, and sell high value-added products.
We are entering a severe shakeout period in the global
digital consumer electronics industry as competition stiffens onfunction, design, and price with the rise of Chinese, Taiwanese,and Korean manufacturers.
However, it is precisely in this sort of severe environmentthat we are seizing the opportunity to manifest the true valueof Funai Electric, with our advanced in-house development
capacity and our formidable production system. We will work
to increase our brand value and expand our market share by
rapidly developing and manufacturing products that match theneeds of consumers and supplying products of superior quality
and cost-performance to the global market.

Our Product Brands
Brand sold in Japan

Brands sold in North America

Corporate Profile 2021

6

｜ Business Description ｜Display Business

Digital Media Business

76% oftotal sales

61.4

14% oftotal sales

11.0

bn yen(FY2020)
HD Blu-ray

65-inch Android TV™ for the U.S. market

Globally recognized high-definition imaging, a new
option in OLED TVs in Japan

Enticing AV users with a high-definition
recording function

Funai Electric maintains top-ranked share among Japanesemanufacturers in the North American market where we sell
three brands (Philips, Magnavox, and SANYO). We also began
exclusive sales of FUNAI-brand products at Yamada Denki(now Yamada Holdings Group) stores in Japan from 2017 andare steadily expanding sales.

In the North American market, we have provided 4K Ultra HD
Blu-ray Disk players since 2016. We also launched exclusive
sales of a FUNAI-brand 4K Ultra-HD Blu-ray Disc recorderat Yamada Denki (now Yamada Holdings Group) stores in July
2018, and are continuing to expand overall sales with flatpanel televisions.

Office Solutions Business

Development and New Businesses

5% oftotal sales

4.2

5% of
total sales

3.8

bn yen(FY2020)

Nail art printer7

bn yen(FY2020)bn yen(FY2020)

Dental CT scanner

Capitalizing on the diverse range of business needs toachieve expansion of the printer businessMeeting a wide range of OEM needs with latest
technology and optimal manufacturing

Funai is utilizing the expertise it has cultivated in OEM for
inkjet printer products since 1997 to expand the businesssubstantially. We manufacture printer-related products forvarious purposes in the B2B and OEM segments, such as
proprietary ink cartridges for industrial use that employ thermal
inkjet technology and the Nail Art Printer. We have also enteredan alliance with The Procter & Gamble Company, the world’s
largest manufacturer of consumer daily necessities, and will
introduce products in the beauty segment.

Funai Electric is meeting a wide range of needs in the
medical and healthcare segments with superior technology.
We manufacture dental CT scanning devices for the U.S.
market and have jointly developed and created a prototype
bed for nursing care and with the medical division of auniversity in an industry-academic partnership, among otherproducts. In addition to the above initiatives, we are working
on development of devices for installation in vehicles andwill provide components and modules that are based on our
optical technology, such as meter panels and power inverters.

｜ Topics ｜TopicsTOPIC

Premium LCD television with an improved color gamut 4K quantum dot panel sold exclusively
nationwide through the Yamada Holdings GroupWe expanded the line-up of FUNAI-brand televisions sold nationwide exclusively
through Yamada Holdings Group, with the launch of the FUNAI Qdt TV (540 series),
a 4K quantum dot television, in June 2021. This model has a rich color gamut thatexceeds existing LCD televisions.
4K quantum dot televisions have a module with quantum dots (semiconductor
particles having a diameter in the nanometer range) installed in the LCD panel. These
quantum dots change the wavelength of light, making it possible to display a richgamut of colors. The Q540 series utilizes the optical design technology developed by
FUNAI Qdt TV, a 4K quantum dot television
Funai Electric over many years to achieve a gamut that includes both highly pure blues,in the Q540 series
greens, and reds and intermediate colors such as skin tones. The rich colors in brightscenes on a 4K television meet the entertainment needs of customers.
The inclusion of the Dolby Atmos® stereophonic sound technology used in films and theaters worldwide also achieves the
feeling of being immersed in another dimension, as if the viewer has entered the video world. Also installed as standard equipment,
Android TV™ enables the installation of various kinds of apps such as streaming services and games. This provides a richimmersive entertainment experience to homes, suited to the age of the new normal.

TOPIC

Selling three FUNAI gaming monitor models with a 240Hz rapid refresh rate

In late June 2021, we added three models in two series of FUNAI gaming monitors to the FUNAI-brand products being exclusively
sold by the Yamada Holdings Group. These monitors employ imaging technology we have developed as a TV manufacturer.
Both the 540 series and the 440 series of the FUNAI gaming monitor have a 240 Hz rapid refresh rate and achieve a 1 ms
response time. The resulting smooth visuals with little sense of delay enables gamers to enjoy playing even fast-paced games andreliably capture targets. These monitors also use the proprietary “Panoramic wide color” resolution setting technology we havecultivated through many years of LCD TV development. It reproduces a wide color gamut of around 16.77 million colors, delivering
vivid, dynamic visuals that provide a realistic sense of being in the game.
The 32-inch and 27-inch models in the 540 series use a curved surface display panel. This provides the panoramic effect of
being enveloped in the imagery. The difference in depth from the side edges to the center of the screen also produces a 3D visual
effect, creating an illusory space that makes it seem like you are in the game world. Moreover, all of the images on the screen are
equidistant from the player’s perspective. There is no need to refocus so these monitors are optimal for games with rapid movement
such as racing, shooting, and battle play. With FUNAI gaming monitors, you can enjoy a comfortable gaming experience thatprovides a completely new realistic sense of presence and immersion.

FUNAI gaming monitor line-up (Left: 32-inch curved panel, Center: 27-inch curved panel, Right: 27-inch flat panel)

Corporate Profile 20218

｜ Core Competencies ｜DesignTargeting Even Stronger Competitiveness
Adding higher value, reducing the number of parts, local design, and production in the optimal location: Funai is working to achieveboth high value-added products and competitive cost performance to make Funai even more competitive and successful in global
competition.
The business environment surrounding Funai is becoming
increasingly severe due to the impact from trade friction and theemergence of global competitors.
To emerge the winner in such intense competition, Funai
must succeed in two ways: Maintaining the world-class pricecompetitiveness that is a strength of Funai, and developing
appealing products that customers will choose.
To maintain cost competitiveness, we are pushing aheadon reducing the number of parts, using common parts, finding
new local parts through overseas R&D, and reducing fixeddevelopment costs, among other efforts. We are performingsome design work at development sites in Malaysia, China,
and elsewhere, and are working to shorten development time,
reduce labor hours, and improve the efficiency of local partsprocurement.
To create high value-added products that customers will
choose, we are targeting medium and long-term development
themes and incorporating high value-added technology that willlead to building dominance, in addition to performing short-term
development.

Our Approach to Design

Highervalue-added

Achieving
both higher value-added
and cost-competitiveness

Reductionin the numberof parts

Local design
overseas

Production

Taking on the Challenge of Improvements in Productivity
Funai Electric continuously pursues improvements in productivity through its unique Funai Production System (FPS). FPS enables
Funai to provide high quality products with superior cost performance.
FPS, Funai’s unique production system, detects problems in
the production process through intentional stress testing of the
production line (reducing the number of line workers, speedingup the belt conveyor), and taking steps to improve productivity
that encourage voluntary efforts to improve.
Repeatedly working through this cycle detects problems
with the current production system and fosters a mindset
among team members to take the initiative on improvement.
This enables continual improvements in productivity. Funai
sees FPS as the driver for achieving sustainable growth and is
working to achieve even greater improvements in production.

Continual improvement in productivity through FPS

Perform
an intentionalline stress
test

Resolvethe problems

Detectproblems

Take steps
to improve

9

SalesCapturing the Needs of Markets around the World
Funai Electric deploys a sales strategy based on the unique characteristics of each market in many locations around the world. In
the North American market, which is the largest market in the world, Funai has strengthened its relationship with leading massretailers to develop an accurate assessment of market needs, and maintains top share in the market. We also began exclusive salesof the FUNAI brand through Yamada Denki, the largest mass retailer of consumer electronics in Japan, from 2017.
Funai’s sales strategy is to use our close relationships with sales
channels to accurately identify market needs and the latest
trends, and provide high-quality products with superior costperformance.
In LCD televisions, our core product, we hold top market*
share among Japanese manufacturers in the North American
market in terms of unit shipments. We also began exclusive
sales of FUNAI-brand products in Yamada Denki stores in theJapanese market from June 2017. In June 2020, we launchedsales of ten television models in four series, including the 7030
OLED Android TV™ series equipped with an internal hard disk
drive. This provides a new line-up of FUNAI-brand TVs soldexclusively through the Yamada Denki Group nationwide. Funai
is steadily increasing market presence by pursuing a productdevelopment and sales strategy matched to the needs of themarket.

In printer-related products, we launched the nail art printer,a product that applies Funai’s thermal inkjet technology, and it
has received good reviews. In new businesses, we are pursuingdevelopment and production of nursing care and medical
equipment, and are also engaging in product development
aimed at next-generation needs through our alliancestrategy, under which we have entered alliances with FOMM
Corporation, a venture firm that is developing compact electricvehicles; P&G, the world’s largest manufacturer of consumer
daily necessities; NTT Plala Inc., the provider of Hikari TV, thelargest video platform in Japan; ROKI Co., Ltd., and othercompanies.

* 2014–2019: Funai’s share of LCD television shipments in North America
compared to other Japanese manufacturers, IHS Markit research.

Global sales locations
Global production locations

Main markets

LCD televisions

OLED TVs, others

Production locations

Large LCD
televisions

BDs, printers
Ink cartridges

Corporate Profile 202110

｜ ESG ｜Realizing Sustainable Communities
We are also actively pursuing environmental initiatives as one of the cornerstones ofmanagement.
Since the company was founded,
Funai has built overwhelming trust in
the imaging device segment using its
superior supply capabilities and thecost performance of electronic products
focused on functionality as sales points.
The proprietary Funai Production
System (FPS), technical skills inmechatronics, and structure for producing

and selling in the optimal global locations,which we have developed in the courseof our history, are our most importantmanagement assets. We regard these as
our greatest weapons in surviving intense
industry competition.
We also aspire to improving quality,
delivery lead times, and costs even more,and delivering products that always meetthe needs of the times.
We are actively pursuingenvironmental initiatives as one of thecornerstones of management as wework to achieve these things.
We continually work to implement
environmental initiatives in activities atbusiness locations and in product-related
activities.

Product-related Activities and Results
Based on our Corporate Commitments to“adopt continual product improvements,
continually promote ever deeper trust,and seek further harmony and mutual
prosperity,” we design and manufacturehigh-quality products that are friendly
to the global environment and satisfy
customers.
Specifically, we endeavor to develop
products that are lightweight andsimple so they use fewer resources.
By decreasing the amount of electricity
products use, we contribute to
reductions in global warming when
our products are used by customers.
Making products slimmer means thatthey can be transported more efficiently,
and this reduces the environmental
impact of the shipping process. By
eliminating hazardous substances fromour products, we are working to halt
environmental pollution. To ensure thatthese goals are achieved on an ongoingbasis, we have established the ProductEnvironment Committee as a crosscompany organization for environmentallyconsiderate product design.

• Green Procurement Activities

Based on the principles contained in theGroup Code of Conduct, we endeavor
to protect the global environment andwork to mitigate the risk to human healthand the environment from the chemicals
contained in our products as one part of

11

those efforts. Funai has formulated Green
Procurement Standards. The purposeof these standards is to mitigate theserisks, and environmentally friendly partsand materials are procured throughout
the entire supply chain, by parts andmaterials manufacturers in addition to
Funai itself.
More specifically, we have built
and operate a system for managing
chemicals contained in products toensure that hazardous chemicals are
not used in our products. To achievethis, we work together with our partsand materials suppliers to prohibit orlimit hazardous chemicals regulated byindividual countries throughout the world.

• Initiatives to Prevent Global Warming
Funai is participating in the Japan
Business Federation’s Commitment
to a Low Carbon Society through the
Liaison Group of Japanese Electrical andElectronics Industries for Global Warming
Prevention and is pursuing measures
to combat global warming via thecompany’s business activities.
Reducing greenhouse gas emissions(CO2) is one indicator for productdevelopment, and we control new issues
such as reducing electricity consumption,
reducing product size, and improving
transport efficiency in all aspects ofproduct development while implementing
company-wide initiatives that cancontribute to preventing global warming
on an ongoing basis.

• Life Cycle Assessment (LCA)

To create products that reduce theburden on the environment, we perform
a product assessment every year toevaluate products from the aspectsof energy savings, reduction in use ofnatural resources, recycling, hazardous
substances contained, and other aspects
to assess the burden imposed on theenvironment, from production throughdisposal of a product. This is useful
in designing and developing productsthat impose a lower burden on theenvironment.

Environmentally-friendly Product Development

Based on the principles contained in
the Funai Group Code of Conduct,
we endeavor to protect the global
environment and work to reduce theburden imposed on the environment fromthe chemicals contained in our products

as one part of those efforts.
To reduce this environmental burden,
we have worked with our suppliers tobuild a system to manage chemical
substances contained in our products
and those of our suppliers, and havetaken steps to prohibit use of chemicals
in products that impose a large
environmental burden.
J-Moss is the abbreviation of the
JIS standard for labeling chemical
substances contained in electrical andelectronic devices in Japan.
Based on JIS C 0950: 2008, labelingof products that contain specified
chemical substances* is legally mandated

for specific product groups (televisions,personal computers, air conditioners,
refrigerators, washing machines,
microwaves, and clothes dryers). The
J-Moss Green Mark can be displayed on
products that contain a percentage ofsuch substances that is lower than thestandard value.
Funai televisions meet the criteria
for the J-Moss Green Mark because we
select environmentally friendly materials
and parts from the design stage.
* Covers six substances: Lead, mercury,cadmium, hexavalent chromium,polybrominated biphenyl, and polybrominateddiphenyl ether

Human Resource Education/Initiatives in Employee Health Management

In the Funai Group, we regard thedevelopment of globally active humanresources and professional resources as
one of the most important managementtasks embodying the founding spirit, andwe put effort into educating and training
people after they join the company.
New employee training is provided
in April every year to equip new

employees with basic knowledge as
full-fledged members of society andteach them how to perform their work.
Training in an overseas plant for threemonths is provided regardless of job
classification and employees learn thethought process of the proprietary
Funai Production System (FPS).
Continuous skills improvement training
by an instructor is offered internallyto encourage ambitious employees
to pursue self-education to improvebusiness skills and technical skills.
Training by grade level is also provided
periodically to improve the management
skills of people in managerial andspecialist positions.
Various kinds of English courses
are provided to equip employees withthe language skills essential as global
human resources, and we are working tomaintain their motivation to improve theirEnglish skills by introducing the TOEIC
score as a requirement for advancement
and promotion.
We also actively engage in employee
health management to ensure that all
employees come to work in a healthy
condition and demonstrate their personalcapabilities. All employees participate incompany health drive efforts. We also
provide them with information on healthand nutrition, and have an industrial
physician conduct health management
courses.
Funai formulated a mental healthpromotion plan based on the Ministry of
Health, Labour and Welfare’s Guidelines
for Promoting the Mental Health ofWorkers. We have put in place an internal
structure and set up a consultation deskas part of our mental health promotion
measures.

Corporate Profile 202112

｜ ESG ｜Corporate Governance[Overview of Corporate Governance]
The Funai Electric Group has the following view of corporate governance. We aim to respond to changes in the management
environment and continually strive to enhance corporate value by increasing the transparency of management for shareholders,consumers, business partners, local communities, employees, and all other internal and external stakeholders, and ensuring soundand efficient management and swift decision-making.
We have established an executive officer system to facilitate agile decision-making and prompt execution of business based on
this philosophy.
Funai also established the Funai Group Code of Conduct and the Funai Group Procurement Policy, which is based on the Group
Code of Conduct. Under this code of conduct and policy, we are promoting corporate social responsibility (CSR) activities.
[Overview of the Corporate Governance Structure and Reasons for Adopting this Structure]
We have adopted the structure of a company with
General Meeting of Shareholders
auditors, and have established a Board of Directors,
Auditors and Accounting Auditors as our corporate
governance structure.
We have established an executive officer system
Accounting Auditors
to facilitate prompt execution of business. In addition to
the Auditors, we have also established the Nomination
Committee, Compensation Committee, and Internal
Investment and Loan Committee to serve as discretionary
advisory bodies to the Board of Directors. These
committees ensure objectivity and transparency in the(Discretionary committees)
process for making important decisions.
Nomination Committee[Board of Directors]
The Board of Directors consists of seven directors (oneof whom is an outside director). It aims to make prompt
decisions. The outside directors, who have no significant
conflict of interests, ensure sound and transparent
management by participating in decisions made by the
Board of Directors.

Corporate Auditor

Board of Directors

Compensation Committee
Internal Investment and
Loan Committee

Chairman and CEO

Internal Control Committee

Vice Chairman[Advisory Bodies]
Representative Director and COO• Nomination Committee
The Nomination Committee consists of directors who have
Directors responsible
for business/Officers
been appointed as committee members by the Board of
Directors. As an advisory body to the Board of Directors,
this committee recommends candidates for director
positions to the Board of Directors, thereby ensuring
Business divisions & subsidiaries
Audit Officetransparency and objectivity in the candidate selection
process.
• Compensation Committee
The Compensation Committee consists of directors who
have been appointed as committee members by the Boardof Directors. This committee has been delegated the authority to determine the compensation for directors and executive officers,
thereby ensuring transparency and objectivity in the compensation determination process.
• Internal Investment and Loan Committee
The Internal Investment and Loan Committee consists of directors and executive officers whom the president has appointed ascommittee members. This committee examines and discusses the contents of individual investment and lending projects of importanceto the Company, thereby ensuring transparency and objectivity in the process for deciding whether or not to proceed with individual
investment and lending projects.

13

｜ ESG Topics ｜A Broad Range of Local and Community Activities
Ongoing partnership with Los Angeles Angels to achieve penetration of the FUNAI brandFunai concluded a partnership agreement with the Los Angeles Angels, a major
league baseball team in the U.S., in February 2018.
Shohei Ohtani, who is both a pitcher and designated hitter for the Los Angeles
Angels, has attracted much interest in the U.S., as well as in Japan.
The main provisions of the partnership agreement include installing a board
inscribed with both the FUNAI logo and the Angels logo on the media banner inpostgame “hero of the game” interviews in the press room after Angels home games,
and conducting postgame interviews for games that Ohtani has played in, in front of
this media banner.

Sponsor agreement renewed with S.C. Sagamihara of the soccer J League

S.C. Sagamihara official uniform for the2021 season with our corporate logo on thepants (Player Junichi Inamoto, the former
representative of Japan who joined S.C.
Sagamihara from the 2020 season, is in thecenter of the photo)

In February 2021, Funai renewed the sponsor agreement with the professional soccer
J League club, S.C. Sagamihara. We are striving to achieve penetration of the FUNAI
brand again during the 2021 season by displaying our corporate logo on the pants of
the official S.C. Sagamihara uniform, the interview board at official home games andevents, the signboard installed behind the goal, and on the official website and official
publications.
S.C. Sagamihara, which calls Sagamihara City, Zama City, Ayase City, and Aikawa
Town home, signed on Junichi Inamoto, the former representative of Japan, from the2020 season. S.C. Sagamihara has been promoted to the J2 League from the 2021
season, and is expected to achieve further breakthroughs. We support the team throughour sponsor agreement and will contribute to the promotion and greater vitality of sports
through various kinds of collaborative planning and promotional activities.

Activities that contribute to and support communities
In the U.S., the Funai Group participates in the Children’s Miracle Network, which
supports hospitals that treat pediatric illnesses, and participates in charity projects.
We have also supported Walmart and Sam’s Club in participating in the Sharing &Caring support for children in need during the holiday season, and donated Funai TV
and DVD products.
We hope that these activities will make children’s dreams come true and givethem the strength and courage to fight their illnesses, and that they will contribute to
the community in general by supporting families, sponsors, and those who donate.

Locally-rooted contribution activities
Funai products are used as thank you gifts when taxpayers contribute a portion of their taxes to the hometown revitalization fund forthe city of Daito in Osaka, where our headquarters is located. We provided approx. 4,000 units in FY2019. We will continue to makesubstantial contributions to the Daito City hometown revival tax contribution fund and strive to improve Funai’s name recognition.
Corporate Profile 202114

｜ History ｜A Parallel Chronology of Product Development andthe History of Funai Electric
1960s
August 1961

1980s
● FUNAI ELECTRIC CO., LTD. established in
Ikuno Ward, Osaka City, capitalized at 20 million
yen. (Transistor radio business of FUNAI LIGHT
MACHINERY MFG. CO., LTD. spun off as anindependent company)

March 1964

● CHUGOKU FUNAI ELECTRIC CO., LTD. (now aconsolidated subsidiary) established as a production
company in Fukayasu-gun (now Fukuyama City),
Hiroshima Prefecture

May 1968● FUNAI ELECTRIC COMPANY OF TAIWAN
established in Kaohsiung, Taiwan as the first large
production plant overseas

April 1969

● Construction of new headquarters building
completed in Daito City, Osaka Prefecture (current
location of headquarters)

1970s

September 1970 ● FUNAI AMERICA ELECTRIC SERVICE CORP. (later,
FUNAI USA CORPORATION) established in the U.S.
as a sales subsidiary
September 1976 ● Headquarters relocated to Daito City, Osaka
Prefecture

June 1980● FUNAI ELECTRIC TRADING (EUROPE) GmbHestablished in Hamburg, Germany as a sales
subsidiary

July 1983● Tokyo Branch Office established in Chiyoda-ku, Tokyo

March 1987

● Full-scale entry into the domestic market

1990s
March 1992

● HIGHSONIC INDUSTRIAL LTD. (now FUNAIELECTRIC (H.K.), LTD., a consolidated subsidiary)established in Hong Kong to oversee contract
manufacturing in Guangdong, China

January 1996

● FUNAI SERVICE CO., LTD. (now a consolidated
subsidiary) established as a domestic service
subsidiary

February 1999

● Listed on the Second Section of the Osaka Securities
Exchange

2000s
March 2000

● Listed on the First Sections of the Tokyo Stock
Exchange and the Osaka Securities Exchange

November 2000 ● FUNAI LIGHT MACHINERY MFG. CO., LTD. acquired
through an absorption-type merger
March 2001

● Fiscal year-end changed from June 15 to March 31

Product History
1971
1959

1963

The start of productionof the transistor radio led
to the establishment ofour predecessor, FUNAILIGHT MACHINERY
MFG. CO., LTD. Explosive
growth followed, as thecompany concentrated
on OEM sales to leading
U.S. and European
manufacturers.

The application of
mechatronics technology,
centering on control
technology for the rotating
mechanism, led to thedevelopment of a host of
product manufacturing
technologies.

Transistor Radios

1994

Air Conditioners

1968

8-Track Car Stereos

1969Radio Cassette Players

Home Stereos

Cassette Car Stereos

1977

Stereo Cassette Tape Decks

1997

In these years, set world
record for unit productionof 8-track car stereos.

1999

Proprietary compact
video cassetterecorder developed.
The advanced
technical capabilities
drew interest for the
success in recording
a video on the peakof Mt. Everest for
the first time in theworld.

2000

Laser Beam Printers

Supplied OEM products
to leading U.S. printermanufacturer. Succeededin mass production.

2002

Projectors

2002
LCD TVs

2004

DVD Recorders

DVD Players

In the 2000s, acquired aleading share of the North
American market.

1980

CVC VCRs

Open Reel-to-reel Tape
Recorders

Inkjet Printers

15

1971

Commenced productionof monochrome laser
beam printers following
the launch of inkjet printersin 2000.

Provision of OEM
products to specialized
projector manufacturer inUnited States.

With a few years
after commencing
production, acquired
top share of the North
American market.

In addition to
our own brand,
received orders for
OEM production
from other major
manufacturers,
leading to a top
share of the global
market.

July 2003

● FUNAI (THAILAND) CO., LTD. (now a consolidated
subsidiary) established in Nakhon Ratchasima,
Thailand as a production subsidiary

October 2006

● FUNAI ELECTRIC (POLSKA) Sp. z o.o. established in
Lubusz, Poland as a production subsidiary

April 2013

● Acquired 100% of the shares in a manufacturingsubsidiary of Lexmark International (Philippines), Inc.
that produces printer-related products (now FUNAIELECTRIC CEBU, INC., a consolidated subsidiary)

June 2015

September 2007 ● BROADTEC TV R&D CENTER SDN. BHD. (nowFUNAI MALAYSIA R&D SDN. BHD.) established in
Malaysia as a research and development center● Switched to the format of a company with an Audit &Supervisory Committee

April 2016

● FUNAI SERVICE CORPORATION (now aconsolidated subsidiary) established in Ohio, U.S.A.
as a service subsidiary● FUNAI MANUFACTURING, S.A. DE C.V. (now aconsolidated subsidiary) established in Tijuana,
Mexico as a production subsidiary

May 2017● Hideaki Funakoshi became President & CEO

June 2017● Exclusive sale of FUNAI-brand televisions and Blu-ray
Disc recorders at Yamada Denki began

July 2017● Tetsuro Funai, the company founder passed away

April 2018

● Absorption-type merger of FUNAI CORPORATION,
INC. and P&F USA INC., with P&F USA INC. (now aconsolidated subsidiary) as the surviving company

June 2019● Entered business alliance with NTT Plala, Inc.

October 2019

● Entered business alliance with ROKI Co., Ltd.

October 2007

June 2008

April 20092010s

● P&F USA, Inc. (now FUNAI CORPORATION, INC.,
a consolidated subsidiary) established in Georgia,
U.S.A. as a sales subsidiary● P&F MEXICANA, S.A. DE C.V. (now a consolidated
subsidiary) established in the State of Mexico, Mexico
as a sales subsidiary

June 2011● FUNAI ELECTRIC R&D (SHENZHEN) CO., LTD.
established in China as a research and development
centerApril 2013

● FUNAI ELECTRIC PHILIPPINES INC. (currently aconsolidated subsidiary) established in Batangas
Province, Philippines as a production subsidiary2020s
May 2020● Acquired PreXion Corporation as a subsidiary

July 2021● Koji Bando becomes the Chairman and CEO

1985

TV/VCR Combos

1983

VHS Videos

CVC technology
applied todevelopment of the
VHS video format.
The video deckmechanisms andkey parts (motor,
cylinders) werethen produced inhouse and productcompetitiveness
improved dramatically.

2004

1983

1985

Microwave Ovens

1986
CRT TVs

1987

Auto Bakeries

Developed cordless home
telephones, entering
the telecommunications
equipment business.
Developed the world’s
first antenna-less cordlesstelephone.

2008

2009

Blu-ray Disc Recorders

One example of a CRT
TV/video combination:
the TV with internal
video. Major sales
growth in the late
1990s to early 2000s,
acquiring a share ofmore than 60% in North
America.

The world’s first
automatic bread-making
machine, sold as the
Raku Raku Pan Da.
The first such productto make a full-fledged
entry into the Japanesemarket. Earned topselling product award as
the Nikkei Inc. “bestselling product of theyear awards.”

2012

2013

LED Lighting

Stick-Type Smart TV Devices

Blu-ray Disc Players

1989

Laser Disk Players

Noteworthy as the first
products marketed by
all stores of Japaneseleading mass retailers
under the FUNAI brand.
Commercial versions
sold later.

2018

2019

OLED

Digital Still Cameras

OEM supply toleading U.S. camera
manufacturer.

1988
Faxes

Cordless Telephones

Commenced
production of players
meeting the nextgeneration optical discstandard, with higher
quality than DVDs.

Became a recordbreaking hit in Japan
ahead of the 2011transition to digitalterrestrial broadcasting.

Commenced
development and sales
to telecommunications
carriers of this stick-typecompact set-top-box,
which converts astandard television to an
Android™ 4.0-equipped
smart TV.

Nail Art Printer “CureNel”

Launched OLED withbuilt-in hard disk for the
first time in history at
Yamada Denki.

We started sellingcompletely new productsthat anyone can easily
print on their nails in ashort time.

Corporate Profile 2021

16

FUNAI ELECTRIC (H.K.), LTD.

FUNAI SERVICE CORPORATIONFUNAI ELECTRIC R&D(SHENZHEN) CO., LTD.

FUNAI LEXINGTONTECHNOLOGY CORPORATIONFUNAI ELECTRIC CO., LTD.
OSAKA HEAD OFFICE

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

FUNAI SERVICE CO., LTD.

FUNAI (THAILAND) CO., LTD.

FUNAI GENERAL SERVICE CO., LTD.

FUNAI MANUFACTURING,
S.A. DE C.V.

FUNAI MALAYSIA R and D SDN. BHD.
Graphic Corporation

FUNAI ELECTRIC PHILIPPINES INC.

FUNAI TRADING CORP.
FUNAI CORPORATION, INC.

TOKYO HEAD OFFICE
PreXion Corporation

FUNAI ELECTRIC CEBU, INC.

CHUGOKU FUNAI ELECTRIC CO., LTD.

Offices and subsidiaries

Name

FUNAI ELECTRIC CO., LTD.

Established

August 1961

OfficesHead office

7-7-1 Nakagaito, Daito, Osaka 574-0013
TEL +81-72-870-4303 FAX +81-72-871-1112
URL https://www2.funai.co.jp/en/index.html

Salessubsidiaries

Capital31.307 bn yen (as of Mar. 31, 2021)

Net sales

80.448 bn yen(fiscal year ended Mar. 31, 2021)

Employees

2,243 (as of Mar. 31, 2021)

TOKYO HEAD OFFICE

Production
subsidiaries

FUNAI TRADING CORP.
CHUGOKU FUNAI ELECTRIC CO., LTD.
FUNAI MANUFACTURING, S.A. DE C.V.
FUNAI ELECTRIC (H.K.), LTD.
FUNAI (THAILAND) CO., LTD.

Display Business

LCD TVs/OLED TVs

Digital MediaBusiness

Blu-ray Disc players/
recorders

Office Solutions
Business

Printers
Ink cartridges

Development andNew Businesses

FUNAI CORPORATION, INC.
P&F MEXICANA, S.A. DE C.V.

Business category Electrical equipment
Principal
businesses

OSAKA HEAD OFFICEFUNAI ELECTRIC CEBU, INC.
FUNAI ELECTRIC PHILIPPINES INC.
Development FUNAI ELECTRIC R&D (SHENZHEN) CO., LTD.
subsidiaries
FUNAI MALAYSIA R and D SDN. BHD.
FUNAI LEXINGTON TECHNOLOGY CORPORATION
Affiliatedsubsidiaries

Other devices

FUNAI SERVICE CO., LTD.
FUNAI GENERAL SERVICE CO., LTD.
Graphic Corporation
PreXion Corporation
FUNAI SERVICE CORPORATION

Executives (as of October 1, 2021)
Directors
Chairman and CEO
Vice Chairman
Representative Director and COO
Director Executive Officer
Director Officer
Director
Outside Director

Koji Bando
Hideaki Funakoshi
Tomokazu Ueda
Motoyoshi Adachi
Takeshi Ito
Fumiaki Kidera
Akihiro Sako

Corporate Auditor
Corporate Auditor Kazuo Uga

7-7-1 Nakagaito, Daito, Osaka 574-0013, Japan
Phone +81-72-870-4303 Fax +81-72-871-1112

URL https://www2.funai.co.jp/en/index.html

Officers
Officer
Officer
OfficerHisaharu Oura
Masanori Sakakibara
Tadahiro Akahodani