Press Release
November 7, 2016
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
President and CEO: Tetsuhiro Maeda(Code No.: 6839 First Section of TSE)

Notice of Conclusion of Basic Agreement on Transfer of Subsidiary Shares
Funai Electric Co., Ltd. (hereinafter, “the Company”) hereby announces that its Board of Directors resolved at ameeting held on November 7, 2016 to conclude a basic agreement with Elecom Co., Ltd. (4-1-1 Fushimi-machi, Chuo-ku,Osaka-shi, Osaka; Junji Hada, President), on pursuing concrete discussions regarding the transfer of shares in DX
Antenna Co., Ltd. (2-15 Hamasaki-dori, Hyogo-ku, Kobe-shi; Minoru Yoneyama, President and Representative Director),
a consolidated subsidiary of the Company.

1. Reason for transfer of shares
The Company made DX Antenna Co., Ltd., a subsidiary in November 2001 and has since endeavored to develop its
domestic business as a company manufacturing and selling antennas and television reception equipment in Japan.
LCD-TV sales in the US market, the Company’s primary sales market, have been declining of late due in part to intense
price competition. While seeking in such circumstances to suitably consolidate management resources as a corporategroup by finding a buyer for this subsidiary, the Company received an offer from Elecom Co., Ltd., to accept transfer of
all of the shares of DX Antenna Co., Ltd.
Because of the proximity of the markets for the products handled by Elecom Co., Ltd., and DX Antenna Co., Ltd., andthe small degree of overlap in sales channels, this transfer is expected to produce a synergistic effect in terms of sales,with the sales capabilities of Elecom Co., Ltd., centered on regional mass merchandisers of household appliances
expected to contribute substantially to expanded sales by DX Antenna Co., Ltd., and thus make such a transfer beneficial
to both companies.

2. Profile of subsidiary
(1)

Name

DX Antenna Co., Ltd.

(2)

Location

2-15 Hamasaki-dori, Hyogo-ku, Kobe-shi, Hyogo(3)

Name/title ofrepresentative

Minoru Yoneyama, President & Representative Director(4)

Nature of business

Manufacture/sale of full range of antennas, TV reception equipment,
CATV equipment, information transmission system equipment, andsecurity system equipment, as well as incidental research, design, andconstruction management(5)

Capital363,000,000 yen

(6)Date established

September 1956

(7)

Major shareholders
and shares

Funai Electric Co., Ltd.: 96.0%

(8)

(9)

Relationships
between listedcompanies and thesubsidiary

Capitalrelationships

The Company holds 96.0% of the shares of the subsidiary

Personal
relationships

Not applicable

Businessrelationships
Connections
with relatedparties

The Company has previously sold products to thesubsidiary.
The subsidiary is a consolidated subsidiary of theCompany.

Subsidiary’s business performance and financial position over last three years
Settlement period

Fiscal year ended
February 2014

Fiscal year ended
February 2015

Fiscal year ended
February 2016

Net assets

Thousand yen

Thousand yen

Thousand yen

11,960,221

12,016,214

11,514,372

Total assets

Thousand yen

Thousand yen

Thousand yen

18,192,684

18,112,406

17,012,265

Net assets per share
Sales
Operating income
Ordinary income
Current net income

Yen

Yen

Yen

1,021

1,025983

Thousand yen

Thousand yen

Thousand yen

16,485,323

13,615,956

12,115,241

Thousand yen

Thousand yen

Thousand yen

562,205

204,362(475,162)

Thousand yen

Thousand yenThousand yen

719,322

403,400(488,026)

Thousand yen

Thousand yen

Thousand yen

432,870

186,936(446,036)

Yen

Yen

Yen

36.96

15.96(36.08)

Yen

Yen

Yen

533

Current net income
per share
Dividend per share

3. Profile of share transfer recipient
(1)

Name

Elecom Co., Ltd.

(2)

Location

4-1-1 Fushimi-machi, Chuo-ku, Osaka-shi, Osaka(3)

Name/title ofrepresentative

Junji Hada, President(4)

Nature of business

Development, manufacture and sale of personal computer- and digitalequipment-related products(5)

Capital1,975,474,000 yen(6)

Date establishedMay 1986(7)

Net assets

20,674,624,000 yen(8)

Total assets

39,981,209,000 yen

(9)
(10)

Major shareholders
and shareholding
ratio
Relationships
between listed

Junji Hada: 28.4%
Capitalrelationships

Not applicable

companies and thiscompany

Personalrelationships
Businessrelationships
Connections
with relatedparties

Not applicableNot applicableNot applicable

4. Number of shares to be transferred, transfer price, and shares held before/after transfer
The number of shares to be transferred, the transfer price, etc., will be promptly announced as soon as they havebeen ascertained and finalized via future discussions.

5. Schedule
(1)
(2)
(3)

Conclusion of basic
agreement
Conclusion of sharetransfer agreement
Share transfer dateNovember 7, 2016
January 2017 (tentative)
End of February 2017 (tentative)

6. Future outlook
The impact of this transfer of shares on consolidated financial results for the Fiscal Year ending March 31, 2017 andon consolidated financial results for the next and subsequent fiscal years is currently being scrutinized, and any findingsthat should be made public will be promptly announced as soon as they are ascertained.

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