JVC 2008 Annual Report Download - page 8

The JVC KENWOOD Group considers stable distribution of profits one
of its major managerial issues. It will comply with the basic policy of
determining dividends from surplus and other dispositions from the
overall perspective of its profitability and financial condition.
Performance targets of JVC KENWOOD Holdings for
fiscal year ending March 2011 are as follows:
— Net Sales: ¥750 billion
— Operating income: ¥39 billion
— Operating Profit Ratio: 5.2 %
1) Decline in Sales and Improvement in Profit Margin due to
Change in Accounting Policy
Until the second quarter of the year ending March 31, 2009, JVC
calculated its net sales based on gross sales to its business partners,
customer discounts were treated as selling expenses. Following
management integration, JVC will adopt the same method as
Kenwood for calculating net sales, by deducting customer discounts
from gross sales (or netting customer discounts with gross sales).
This will commence from the third quarter of the year ending March
31, 2009. As a result of this change in accounting policy, the sales
projection of JVC for the year ending March 2011 will decrease by
about ¥70 billion compared to the previous method. In addition, profit
margins, including the operating profit ratio, will improve because this
change does not affect operating income figures.
2) Increase in Net Sales due to “Negative Goodwill” and
Application of the Consolidated Taxation System
Management integration is expected to result in approximately ¥10
billion of “negative goodwill” on the consolidated balance sheet of
Synergies
Target for FYE’11/3 — Net sales, Operating profit
Combined net sales and income for Both Companies
*For FYE’07/3 to FYE’08/3, sales amount was converted to under the net method
KENWOOD
JVC
Net sales and income of JVC KENWOOD HD
Net sales
(billion yen)
800 762.2 Net sales
400
Net income
5
Operating profit
12.5
750
39
0.0%
0
5.2%
1.3%
1.2%
-5.8%
-44.3
9.5
-0.7％
FYE’07/3 FYE’08/3 FYE’09/3
Operating
profit ratio
3.1%
Net income
ratio
FYE’11/3 Target
600
400
200
0
40
20
0
-20
-40
Profit
(billion yen)
Net sales and income for
1st half of FYE’09/3 for JVC
will not be consolidated.
シナジー
2011年3月期の売上・利益目標
両社の売上高・損益単純合算
※07/3期と08/3期は売上高をネット方式に換算しています。
ケンウッド
ビクター
JVC・ケンウッド・HDの売上高・損益
売上高
（億円）
8,000 7,622
8,456
845.6
売上高
4,000
当期純利益
50
営業利益
125
7,500
390
0.0％
5.2％
1.3％
1.2％
-5.8％
△443△56
-56
-0.7％
95
0
-0.7％
07/3期 08/3期 09/3期
営業利益率
3.1％
当期
純利益率
11/3期目標
6,000
4,000
2,000
0
利益
（億円）
400
200
0
-200
-400
JVC KENWOOD Holdings. Consequently, on the assumption that it will
be amortized over five years, negative goodwill of approximately ¥2
billion per year is expected to be recorded as non-operating income.
JVC KENWOOD Holdings intends to implement and apply the
consolidated taxation system in association with management
integration; therefore anticipated tax payment by JVC KENWOOD
Holdings for the year ending March 2011 is expected to decrease by
about ¥2.5 billion compared to a situation where both companies did
not integrate management.
As a result, non-consolidated net income of JVC KENWOOD
Holdings for the year ending March 2011 would increase by about
¥4.5 billion compared to a situation where both Companies did not
integrate management.
The amounts of estimated negative goodwill and the anticipated tax
payment are based on tentative estimates at this time and could be
subject to change.
Performance Targets
Basic Policy Regarding Dividends
Outline of Management Integration
JVC KENWOOD Holdings, Inc.
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