JVC 2008 Annual Report Download - page 3

Management Integration Plan
Victor Company of Japan, Limited (“JVC”) and Kenwood Corporation
(“Kenwood”) (collectively, “both companies”) established a
joint holding company, “JVC KENWOOD Holdings, Inc.” (“JVC
KENWOOD Holdings”) on October 1, 2008 through a share transfer,
and management integration. Accompanying establishment, JVC
KENWOOD Holdings was listed as of the same day in the First Section
of the Tokyo Stock Exchange, and became parent company with
ownership of 100% of the shares of both companies, which have now
become de-listed business companies.
In preparation for this management integration, on October 1,
2007 both companies established the “J&K Technologies Corp.”
(“J&K Technologies”) joint venture to materialize synergies through
joint technological development in the car electronics and home audio
businesses—the common business segments of both companies.
The joint venture aims to maximize synergies at an early stage in the
car electronics business from which the greatest synergies can be
expected. It was decided to expand J&K Technologies’ operations from
joint technological development alone to overall development, design,
procurement and production.
As of October 1, 2008, by means of company split (simplified
absorption-type split, the functions of development, design,
procurement, and production, which are directly linked to cost
competitiveness in the car electronics business of both companies,
were passed on to J&K Technologies. The six development/
manufacturing subsidiaries of both companies involved in car
electronics business were changed into subsidiaries of J&K
Technologies, and J&K Technologies was re-established as a new car
electronics business company with a total of 6,000 personnel. To
ensure survival in the digital era and to enhance our competitiveness
and profitability, JVC KENWOOD Group will allow the corporate
infrastructures both companies to evolve into a new foundation for
corporate survival. By adding synergies resulting from management
integration, we will grow and build corporate value and secure our
status as a specialized world leading manufacturer.
Accordingly, to make it possible to survive in the digital era and
strive to enhance our competitiveness and profitability, JVC KENWOOD
Group will allow the corporate infrastructures both companies built
to evolve into a new foundation for corporate survival. Meanwhile,
by adding synergies resulting from management integration, we will
grow and build corporate value and secure our status as a specialized
manufacturer to lead the world.
J&K Technologies
Car Electronics
Joint holding company (Listed on the first section of Tokyo Stock Exchange)
100% 100%
Video Cameras (camcorders)
Display
Home Audio
Professional Systems
Entertainment
Communications Equipment
Home Audio
JVC KENWOOD Holdings
Kenwood
JVC
Group Structure
Annual Report 2008 1