Kenwood 2004 Annual Report Download - page 12

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In fiscal 2002, the Company completed restructuring measures under the plan called "Revitalization Action Plan" and shifted its management priorities to
regeneration, revitalization and a new leap forward, as a reborn Kenwood. In May 2003, the Company devised its three-year midterm business plan
"Excellent Kenwood Plan" for fiscal 2003 to 2005, aiming to become a "world's truly excellent company," while focusing on the business domain of "Mobile &
Home Multimedia Systems," which is expected to be the most promising field in the 21st century.
In fiscal 2003, the initial year for the midterm plan, the effects of the four restructuring phases which were completed in the previous year, together with
the result of production innovations launched in March 2003 to further improve profits and cash flows, clearly contributed to the Company's earnings for the
whole year. As a result, the Company booked a record high consolidated and non-consolidated net income in its 57-year history, for the second
consecutive year. On top of this, managing to reduce loss carried forward and interest-bearing debt significantly, the balance sheet also became healthier,
as the Company took its first step towards becoming a truly excellent company.
Net income
Net income ratio
Operating income ratio
Ordinary income ratio
Kenwood achieved a V-shaped recovery, while eliminating the past "negative legacies"
—Fiscal year through March 2004
2004.3
"Excellent Kenwood Plan" —Midterm business plan
The Company drafted its midterm business plan "Excellent Kenwood Plan"
starting fiscal 2003 (ended March 2004) through 2005 (ending March 2006), as a
step towards regeneration, revitalization and a new leap forward.
This plan is designed so that Kenwood will regenerate itself by breaking with
the past and become one of the "world's truly excellent companies" with the
brand image of innovation and intelligence in "Mobile & Home Multimedia
Systems," one of the most promising fields in the 21st century, as part of its
vision of "Reaching out to discover, inspire and enhance the enjoyment of life."
To this end, the Company intends to dramatically improve its competitiveness
and profitability, by allocating profits earned as a result of the progress of
production innovation and other systematized management for reinvestment in
developing new products and technologies, strengthening the brand name and
"sharing profits among employees," while expanding audio and radio
communications businesses as core competences to the greatest extent.
40
30
20
10
0
-10
-20
12
9
6
3
0
-8
(Billions
of yen) (%)
2000/3 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3
Operating income ratio: 10%
ROE: 20%
Resumption of dividend payments
Implementation of zero net-debt
business management
Targets for
FY 2005
(ending Mar. 2006)
฀
฀
2002/7
Revitalization
Action Plan
2004/5
Excellent Kenwood Plan
—Midterm business plan
Annual Report 2004
12