Press Release
January 25, 2017
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
President and CEO: Tetsuhiro Maeda(Code No.: 6839 First Section of TSE)

Implementation of Public Announcement Measure by Tokyo Stock Exchange, Inc. andrequest for the submission of Improvement Report
We disclosed an investigative report of the internal investigation committee concerning inappropriate accounting
treatment on October 13, 2016. Furthermore, we issued corrections to past documents, including earnings reports, onOctober 17, 2016.
In regards to the issue, Tokyo Stock Exchange, Inc (hereafter TSE) took the Public Announcement Measure on January
25, 2017 based on the Securities Listing Regulations, Rule 508, Paragraph 1, Item 1. TSE also requested an Improvement
Report based on the Securities Listing Regulations, Rule 502, Paragraph 1, Item 1.
We will respond to the measures appropriately and sincerely.

We disclosed an investigative report of the internal investigation committee concerning inappropriate accounting
treatment on October 13, 2016 and issued corrections to past documents including earnings reports on October 17,
2016.

These disclosures acknowledged the facts of the following inappropriate accounting treatments: One of our sales
subsidiaries in the U.S. continued making tax payments using an outdated rate of taxation in Canada, without being
aware of changes made in the tax system of the country. They did not conduct appropriate financial processing evenafter learning of this fault as revealed by a tax investigation; In one business segment, employees did not properly
process freight costs for undelivered invoices from clients; The subsidiary did not properly estimate rebates used forseveral purposes including sales promotions, and overstated its sales performance. Thus, we were found providing
information based on inappropriate account processing on multiple procedures, such as earnings reports disclosed fromthe fiscal year 2012 through to the fiscal year 2016, both ending in March.
The investigation revealed that the subsidiary in question did not have enough employees to appropriately determine
whether its account processing was correct, and that the representative of the subsidiary did not provide proper
guidance of nor properly manage the procedures. It was deemed that we did not sufficiently manage the subsidiaryeither, as the business administration reports from the subsidiary primarily focused on its performance in terms of sales
and profits/loss, and there were no procedures in place for reporting issues that could have significant influence on theoperation. These factors indicate a violation of the listing rules due to the disclosure containing false statements, andwere considered to have extensive impact on investors’ decisions. As a result, TSE implemented the publicannouncement measure. Furthermore, structural reform was deemed highly necessary considering that the issues arosefrom system deficiencies in achieving appropriate and timely disclosure. As such, TSE required us to submit a reportcontaining the background of the issue and improvement measures.

For further information, please contact
Investors and Public Relations
E-mail: investor_relations@funai.co.jp