Kenwood 2005 Annual Report Download - page 18

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Aim to Join Billion Dollar Club at an Early Date through Dramatic Growth, as well as Top Level Earning Capacity in Industry
and Implement Corporate Value Expansion Strategy
The Second Mid-Term Business Plan, “Value Creation Plan”
As mentioned above, the Kenwood Group has formulated the second mid-term business plan, the “Value Creation Plan,” which spans
three years starting from the term ending March 2006, which is also the final year of the first mid-term business plan, the “Excellent
Kenwood Plan,” to the term ending March 2008.
This is intended to take our key businesses of car electronics consumer (audio) business and wireless radio business, which dominate
more than half of the sales of our entire group of companies, and further enhance their stable profit base by enhancing the
organizations to cope with the growing markets such as BRICs, together with progress in M&A. Excellence will then be attained
through the reform of profit structures of growing businesses, such as car electronics OEM business and car multimedia (consumer)
business operations, and overlaying them on the top of that of the stable businesses. Also we will grasp the “Digitization of Media”
for music media to be a new business opportunity. This will then lead us to the pioneering of a new realm in the “Entertainment of
Sound” that integrates car electronics business with home electronics business. All these will result in dramatic growth and a top level
earning power in the industry, and we shall undertake activities relating to the Corporate Value Expansion Strategy to expand our
corporate value to enter the Billion Dollar Club at an early date.
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฀
฀
฀
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Illustrated progress of “Value Creation Plan”
Billions of yen
2001/3 2004/3
2006/3 Forecast
2008/3 Target
Net income marginOperating profit margin
0
50
100
150
200
250
300
350
400 (%)
8
12
16
-16
-12
-8
0
-4
4
2002/3 2003/3 2005/3
Sales
Sales by Business
Segment
181.1 180
220
Second Mid-Term Business Plan
“Value Creation Plan”
Car Electronics Consumer
(Audio) Business
Car Multimedia (Consumer)
Business
Car Electronics OEM Business
Communications Equipment
Business
Home Electronics Business
Others
First Mid-Term Business Plan
“Excellent Kenwood Plan” Target:
approx. 7%
Growing
Target:
20% Grouth
18
Fiscal Year through March 2006