JVC 2011 Annual Report Download - page 18

JVC KENWOOD Corporation
16
The Car Electronics business handles products such as car audio
systems, car AV systems, car navigation systems as well as
optical disk drive mechanisms and optical pickups for car-
mounted equipment for the after-market and OEM segments.
Car electronics must be of a high quality and reliable to
cope with the special temperature and vibration conditions
inside vehicles. They are therefore one of the business domains
in which Japanese corporations can exercise their strengths. We
at JVC KENWOOD have positioned the Car Electronics business,
in which both JVC and Kenwood participated, as the largest
business of the JVC KENWOOD Group. We expect the effects of
integration will be greatest in this business. In this business, we
have also pushed forward with efforts to integrate the
technological development, production, procurement, product
planning, and marketing functions since October 2007. The two
companies had fostered over many years acoustic, video and
car-mounting technologies, and product planning capabilities.
We will leverage the strength of the after-market segment in the OEM segment and expand
our business domains from excitement to peace of mind. We will do this by focusing on
developing products that address concerns about safety, security and ecology and that merge
cutting-edge technologies.
We have focused on developing new products by combining
these with cutting-edge data compression and extension
technologies and user interface technologies. In addition, we
have developed marketing and sales strategies by making the
most of the KENWOOD and JVC brands, which have different
features, respectively. At the same time, we have further
enhanced our cost competitiveness by integrating production
and procurement.
As a result, in the after-market segment, which has a large
sales composition ratio, car audio and car navigation systems
realized the largest share in the European and U.S. consumer
markets. In Japan, a market shift from audio systems to car
navigation systems is advancing. And in that market, we are
rapidly increasing our market share by commercializing Saisoku-
Navi, a memory car navigation system with the industryʼs
highest level response as well as clear images, by integrating the
technologies of the two companies.
With our eye on the shift from the after-market market to
Car Electronics Business
Car
Electronics
Business
Chief Operating Officer, Car Electronics Business Group
Shoichiro Eguchi
FYE 3/ ’14
Target
FYE 3/’11
Results
FYE 3/’12
Forecast (announced on Oct. 28)
FYE 3/’13
Target
Net sales
108.4 billion yen
Net sales
150.0 billion yen
 0
Consumer
sector
OEM
sector
Net sales
(Consumer sector) (Billion yen) Net sales (OEM sector)(Billion yen) Operating income (Billion yen)
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Targets
for FYE3/’14:
Net sales of OEM sector
FYE3/’11 -> FYE3/’14: up 80%
Domestic sales of consumer navigation systems
40,000 units in FYE3/’11 -> 200,000 units in FYE3/’14
Net sales in emerging markets
JPY22B in FYE3/’11 -> JPY30B or more in FYE3/’14 (up 40%)
Net sales: JPY150B; Operating income: JPY8B