Kenwood 2005 Annual Report Download - page 12

World’s first HDD car navigation system enables to
connect directly with iPod
iPod is a registered trademark of Apple Computer, Inc. in the
United States and other countries.
Microsoft® and Windows® Automotive are registered
trademarks or trademarks of Microsoft Corporation in the
United States and other countries.
Promoting R&D in digital wireless
radio equipment for both portable
and automobile systems
Promotion of growth strategy through strategic partnerships
and M&A

1Technical collaboration and capital alliance with Icom Inc.฀
Enormous changes are expected in the field of commercial wireless radio with
the progress of digitization. A technical collaboration agreement was signed
with Icom Inc., on February 25, 2005, to conduct joint research for the
purpose of standardizing technical specifications for a broad range of digital
wireless systems and to promote practical implementation of competitive
digital wireless radio for commercial use while accelerating the growth
strategy.
Further, in order to solidify this technical collaboration and to advance the
wireless radio business of both companies, we made a capital alliance with
Icom Inc., by obtaining 3% of their outstanding shares while allocating the
new shares (approximately 1.5% of outstanding shares of the company) to
Icom Inc. through the third party allocation of an equivalent amount
(approximately JY1.07 billion).

2Acquisition of wireless radio business from Toyo Communication
Equipment Co., Ltd.฀
We established a strong presence in government and utility company sectors
for the domestic commercial wireless radio field and obtained a large number
of resources and technology relating to network and wireless radio business
through the transfer of a wireless radio business on June 1, 2004, from Toyo
Communication Equipment Co., Ltd. Further, we proceeded with the fusion of
the transferred resources with our existing resources, sought expansion of our
product lineup for domestic commercial wireless radio and contributed to the
expansion of our domestic wireless radio business.
Promotion of “Strategic Investments”
Promote strategic developments, brand strategies and
reinvestments in personnel for new growth and to leap
forward
฀
The enhancement of our business competitiveness was promoted through the
development of new technologies, while our global presence and brand power
were enhanced and a reinvestment was made in personnel in preparation for the
full-scale implementation of the growth strategy.

1Promotion of strategic development฀
We made strategic investments for the purpose of developing competitive
products for the car electronics, communications equipment and home
electronics business respectively and accelerated our activities for the purpose
of realizing the “Mobile & Home Multimedia System” business through the
fusion of high sound quality, digital, and network technologies.
Car electronics business฀
We reviewed the joint development organization for the consumer car
navigation systems in order to enhance our car multimedia field. We
developed our proprietary HDD car navigation system based on a new
concept and introduced the product to the market in March 2005. We also
made efforts in the development of multimedia products, such as digital
broadcasting compatible devices which are expected to spread in use in the
future.
Communications equipment business฀
We developed commercial wireless radio with proprietary digital systems
with the digitalization of wireless systems in mind. We proceeded with our
research and development of digital wireless systems through such efforts
as the commercialization of a wireless radio that supports a digital system of
the Association of Public-safety Communication Officials (APCO) in the
United States.
12
Fiscal Year through March 2005