JVC 2009 Annual Report Download - page 14

12 JVC KENWOOD Holdings, Inc.
Overview of Business Segments and Priority Measures
Home & Mobile Electronics Business
In the display business of the home entertainment business, which faces profitability
issues, the Group restructured its global production, reformed sales systems in the
Americas and Europe, reviewed domestic production and sales structures in response to
substantial business downsizing in Japan, and reorganized systems for logistics and
services. We also improved earnings by reducing in-house development and production
of consumer LCD TVs for overseas markets through the use of outsourcing, ODM*1 and
EMS*2, and shifted development resources to sectors where businesses such as next-
generation displays are fostered. Going forward, we are accelerating our business expansion
into the professional market with the introduction of the industry’s thinnest*3 (6.4mm*4)
and lightest weight*3 (5.7kg) professional LCD monitors and professional 3D LCD monitors
into domestic and international markets with the goal of enhancing our product lineup by
leveraging our strengths.
In the home audio business, the Group endeavored to improve earnings through
structural reforms of both companies. We also integrated the planning, engineering,
marketing, quality assurance, production and other functions of both companies’ audio
business, excluding the domestic and overseas sales functions, into JVC on July 1,
2009, aiming for new growth through further strengthening of our competitiveness and
improvement of our presence in the global market. We are capitalizing on the integration
effects at the earliest possible time by making the maximum use of both companies’
brands, products and technologies, and increasing our competitiveness by reducing
costs. In addition, we are continuing to further enhance sales of profitable AV accessories.
Based on these measures, we are making existing businesses profitable by utilizing
the accumulated visual and audio technologies of both companies in the home
entertainment market, and making these businesses more profitable by creating new
genre products and strengthening the B-to-B business.
*1. ODM (original design manufacturing: production outsourcing from the design phase onward)
*2. EMS (electronics manufacturing service)
*3. As of June 8, 2009: as 32-LCD displays
*4. At the thinnest section: the depth between the LCD panel surface and the rear of the cabinet
Home Entertainment
Thinnest*3 (6.4mm*4) and lightest weight*3 (5.7kg)
32” Class Full HD LCD Display
Used wood, an ideal material for use
as a vibration board DVD/CD Woodcone
Speakers Micro System
Kseries, a compact Hi-Fi system making full
use of the audio-quality technology that has
been developed over the years
Consumers can enjoy color coordinating with a
digital audio player or fashion items Gumy
earbud headphones
The Home & Mobile Electronics business consists of the home entertainment business, which
includes LCD TVs and home audio systems, and the digital imaging business, which encompasses
video cameras and D-ILA projectors based on proprietarily-developed optical devices.
Home & Mobile Electronics
Business
FYE’09/9 (Millions of yen)
Net sales ¥105,413
Operating loss -¥1,346
Home Entertainment
Major Products
n LCD TVs
n Home Audio
n AV Accessories
Brand
(Japan only)