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KENWOOD Corporation Annual Report 2002
08
Message from the President
— Rebuilding Kenwood New Management Policies
-equity swap and capital increase will signal the take-off
towards rebuilding our business.
From a cash flow point of view, the balance of interest-
bearing liabilities is expected to drop, even though some
cash expenditures should be associated with the
restructuring efforts in the coming year. For fiscal 2004 and
onward, no restructuring expenses are planned and the
Company is expected to regain its strength early.
Kenwood's NEW VISION and Future Prospect
I believe the above statement removes any doubt about
Kenwood's business integrity and the company's
commitment to a healthy financial position without negative
net worth. From this point on, I would like to explain the
company's medium and long-term strategy.
Offering Fresh Surprises and Excitement
In the process of establishing our new management
policies, we held honest and open discussions with
individuals from within and outside the company that
resulted in our new corporate vision — Kenwood should
"Creating Excitement through Impressive Surprise"
Consistent with this vision, we believe the company's
success depends on the creation of new products and
services that pluck at people's heartstrings.
We have also commissioned a special task force to
conduct studies and facilitate discussions aimed at
redefining Kenwood's brand image; "Creative and
Intellectual" are the words. This idea is consistent with the
image held by many of the customers I have met since my
appointment.
Furthermore, "Mobile & Home Multimedia Systems" has
been targeted as the primary business opportunity, since we
believe this area holds the most promise early in the 21st
century. The use of the word "Systems" reflects our
philosophy that audio components and car navigation
systems would increase in value if they could be used as
integral parts of larger systems. I would like to remind
everyone of Kenwood's technological leadership in radio
communications technology much needed for establishing
connections between mobile and home electronics products.
This core competency separates Kenwood from general
audio manufacturers. By utilizing such expertise, the
company hopes to establish its presence in the global market.