JVC 2008 Annual Report Download - page 5

one of the genres included in the home & mobile electronics business,
and land mobile radio equipment, which makes up the professional
systems business. We will heighten our business competitiveness and
presence in the markets for these primary genres even further through
the effects of integration, to become a corporate group with a solid
earnings structure that can survive in multiple genres.
Toward New Unconventional Added-Value Creation
―Fostering the Fifth Business Segment―
Moreover, at a high level JVC KENWOOD Group will integrate video,
audio and wireless communications technologies, and work to develop
“unconventional” products and services appropriate to the digital
network era, making use of vast resources both companies cultivated
over a long period. By these “unconventional” and unique ideas, we
will send products and services out to the world that stimulate people’
s sensitivities and awaken latent needs, and also bring surprise and
change to everyday lifestyles, thus creating new corporate-value.
Becoming a Company Society Trusts and is Excited
About ―”Perpetual Reform Centered on Each and
Every Individual”―
JVC KENWOOD Group considers it the mission of the corporation
to respond to the expectations of all stakeholders, to be trusted by
society and to contribute to society. These things are also requisites
for the company to achieve continuous development in society. For
this purpose, in addition to seeking compliance as a matter of course
in all our activities, we believe our most important tasks are working
toward sufficient corporate governance, promoting highly-transparent
management, and also contributing to society through business
activities while enhancing efforts toward environmental preservation
for the next generation.
In particular, our video and audio equipment business and
entertainment business activities support cultural activities to
foster people’s sensibilities, and our wireless business supports
communication activities to convey necessary information to people.
For this reason following our course of action of “perpetual reform
centered on each and every individual,” all employees of the Group
will fulfill these heavy responsibilities as a united group.
JVC KENWOOD Group has just taken its first step as a new
corporate group, while passing on the DNA of both JVC and
Kenwood. Please count on us.
We will continue taking steps together with you, and we sincerely
request your continued understanding and support.
accumulation including technologies, facilities, sales networks, and
brand presence.
Kenwood had excess liabilities in fiscal year ended March
2002(“FYE’02/3”) and needed to capitalize on these attractions of a
mature industry to achieve rebuilding management. Since July 2002
Kenwood worked on “four structural reforms” Financial affairs,
Business, Cost and Management. As a result, Kenwood posted record-
high net income in FYE’03/3, and thereafter completed the overall
reform of its financial base, capital structure and the resumption of
dividends, completing the series of structural reforms. In addition, to
overcome some limitations and to achieve strategic growth, Kenwood
worked toward structural reforms in the industry by forging strategic
alliances and M&A, such as establishing Zetron Inc., a U.S. systems-
based communications company in May 2007, and providing financing
to JVC in August of the same year.
As JVC has recorded a net loss for three straight fiscal terms since
the term ended March 2005, the company implemented ‘Action
Plan 2007' in April 2007. JVC has reinforced its consumer equipment
business, entertainment business, and professional equipment business
as core businesses. JVC has worked toward drastic business and
employment structure reforms, including transfer and withdrawing
from non-core businesses. As a result, JVC returned operating income
to profitability in FYE’08/3.
In the first half of FYE’09/3, JVC initiated drastic reform of its display
and audio businesses which had comprised their biggest problem. A
conclusion is now projected for the series of structural reforms. Thus,
both companies have now finished their respective structural reforms
and moved to the next stage of a new growth strategy through
management integration.
Toward Expanding Corporate Value
―Promoting Genre Top Strategy―
JVC KENWOOD Group reorganized the businesses in which the two
companies have been engaged up to now into four individual business
segments, the “Car Electronics business,” “Home & Mobile Electronics
business,” “Professional Systems business,” and “Entertainment
business” and will promote the “Genre Top Strategy” worldwide.
The Genre Top Strategy displays strength in each business field or
genre in which it engages with the goal to be in the global top group.
For example, as the car electronics business genre will have the largest
scale of sales as a result of integration, it is predicted to receive the
greatest impact from integration. JVC KENWOOD Group will be a
global leader in its primary product, consumer car audio. Moreover,
JVC KENWOOD Group has global top group presence in camcorders,
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