Kenwood 2002 Annual Report Download - page 2

Profile
Half a century ago, Kenwood started its business with the production of components for communications equipment. Today,
its business field has expanded to include wireless radio equipment, telephones, and high-grade audio products for homes
and automobiles. Its operation stretches throughout the world to include not only Japan, the US, and Europe, but also Asia,
Africa, and Latin America. In recent years, however, the Company has struggled to offset the losses suffered in the home
audio and cellular phone businesses amidst prolonged economic slumps in Japan and Asia, coupled with the difficulty in
dealing with the unstable currencies exchange market. This predicament led to the announcement of Kenwood Revitalization
Action Plan, with which the Company undertakes the challenge of renewing itself, through a drastic reform of its business and
cost structures.
Furthermore, Kenwood has formulated a new corporate vision — "Creating Excitement through Impressive Surprise" and
redefined its brand image as "Innovative & Intelligent". With these guidelines, we are working hard to bring forward more
value-added products to yield profits in our car electronics, home electronics, and wireless radio businesses. We are going
forward to reach our goal of becoming the most prominent company in the world in the field of Mobile & Home Multimedia
Systems, utilizing our collective strength in audio and communications technologies.
Notes on business outlook
Kenwood's business plans, strategies, beliefs, etc. expressed in this annual report also contain some business outlooks for the future that are not part of the historical
truth. Although Kenwood's management wish to present an accurate view based on all information available today, it is inevitable that business forecasts contain risks
and uncertainties. Actual business performance depends on various factors and may contradict with what has been predicted. Critical factors that may affect the
business outcome include, but are not limited to, the followings. •Economic surroundings and consumer spending in Japan and other major countries •Demand for
Kenwood's products and price reduction pressure arising from competition •Rapid technological development in a highly competitive market and availability of unique
and innovative products that appeal to consumers •Currency exchange rates (especially Japanese yen vs. US dollar and other currencies with which Kenwood carries out
a large portion of its business transactions)
Contents
Financial Highlights
12
01
To Shareholders
Message from the President — Rebuilding Kenwood New Management Policies
Financial Review 2002
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Shareholders' Equity (Capital Deficiency)
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Independent Auditors' Report
The Kenwood Group
Corporate Data
02
04
16
18
19
20
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31
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