JVC 2010 Annual Report Download - page 6

JVC KENWOOD Holdings, Inc.
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The JVC Kenwood Group has been pushing forward with structural reforms in various fields since steps were taken in October 2008 to
complete management integration due to the deterioration of financial results that resulted from the global economic crisis. In the fiscal
year ended March 31, 2010, the Group completed major measures, having applied the Action Plan for Business Structural Reform. This
plan mainly aims to secure a drastic improvement in profits at such unprofitable businesses as the Home & Mobile Electronics Business
and the Business Solution segment of the Professional Systems Business. This has been driven by businesses in which sales and profits
have recovered, such as the Car Electronics Business and the Land Mobile Radio segment of the Professional Systems Business. As a
result, and as announced on May 14, 2010 in the flash earnings report for the fiscal year ended March 31, 2010, in the fourth quarter of
the fiscal year ended March 31, 2010 we recorded the Companyʼs first profit since the third quarter of the previous fiscal year. We expect
to be in the black on an operating level for the full year in the fiscal year ending March 31, 2011.
Notwithstanding this positive trend, we decided to step up efforts through an additional action plan aimed at reconstructing our
corporate base (hereinafter referred to as the “Action Plan for Reconstructing the Corporate Base”) by implementing further measures
that are considered necessary to promote the move from a structural reform stage for survival to a growth stage. We will also do this by
reconstructing our corporate base so that its scale better matched our reduced corporate size, resulting from previously implemented
structural reforms, as well as our current sales level, taking into consideration the recent changes in economic environments and
fluctuations in exchange rates. Through the successful completion of this Action Plan for Reconstructing the Corporate Base we will
reconstruct our corporate base to realize new growth. And based on this corporate base, the Company will focus on its Mid-term
business plan, scheduled to end in the fiscal year ending March 31, 2013, while aiming to recreate and enhance corporate values and
again distribute dividends at an early stage.
To establish a new position as a specialty manufacturer of audio visual equipment and to realize new growth, amidst increasingly intense
global competition, we will strive to select and concentrate our business and alter our business model.
Up to now, we have tried to optimize the effects of integration with the focus on businesses common to JVC and Kenwood (the Car
Electronics and Home Audio businesses). But from now on, the Company will try to create and enhance synergy effects, promote new
businesses and development new products. It will do this by optimizing the integrated management of the Group as well as businesses
that are not common to them.
We projected an increase of about eight billion yen in the fiscal year ending March 31, 2011 as an improvement in profits resulting from
the Action Plan for Business Structural Reform implemented in the fiscal year ended March 31, 2010, with underperforming operations
being substantially improved. In addition, the Company will take measures aimed at making all businesses profitable, posting ordinary
income for the fiscal year ending March 31, 2011, as set forth below:
1. Action Plan for Reconstructing the Corporate Base
Management policies
Strategies
Management Policy and Strategies
～We are continuing to bolster our specialist attributes and transformation toward a designated
manufacturer of AV products focusing on the car electronics and professional systems businesses. ～