JVC 2012 Annual Report Download - page 13

2. Key Measures by Business Segment
(1) Car Electronics business
JVCKENWOOD will focus on expanding its businesses—targeting the OEM segment,
the domestic after-market segment, and emerging markets, where there is ample
room for the Group business growth—by promoting growth strategies that leverage
the strengths of JVCKENWOOD and its partners.
In addition, to achieve a “New mobile life” in response to the worldwide
popularization of smartphones and the growing awareness of safety and peace of
mind, the Group will develop both entertainment and driver safety support functions
with new system configurations that provide an emotional design, as well as the user
interfaces enabling those functions. These initiatives will generate market and
business opportunities based on our strengths in the U.S. and European markets.
a. Expanding OEM business
* Win new orders by leveraging our technological development and after-
market product planning capabilities in video and audio fields, and
develop after-market products into dealer option products
* Expand in-car device business (mechanisms, optical pickups, water-based
paint plastic panel) by enhancing collaboration with Shinwa and making that company a subsidiary
b. Enhancing car multimedia products for after-market business
* Increase Japanese sales by strengthening Saisoku-Navi products and sales network
* Boost after-market sales by making use of DENSO Groupʼs sales network
* Enhance and globally expand car electronics compatible with MirrorLinkTM, and collaborate with Garmin Ltd.
* Enhance display audio systems linked with smartphones, targeting overseas markets where ratio of car audio
systems in which displays are not mounted is overwhelmingly high
The Group is now less susceptible to the effects of changes in the business environment and exchange-rate fluctuations as it
strives to reach the management targets set for the fiscal year ending March 2016, some of which take into account measures for
achieving sustainable, continued growth and strategic measures for creating new growth areas.
The exchange rates assumed in the new Mid-term Business Plan are 80 yen to the U.S. dollar and 103 yen to the euro.
In the new Mid-term Business Plan, the Group has set a net sales target of 400.0 billion yen, down 30.0 billion yen or 7.0%
from the previous Mid-term Business Plan, to take into account factors such as a decrease in amounts converted into yen due to
the strong yen. The operating income target of 20.0 billion yen remains unchanged from the previous Mid-term Business Plan,
due to the increased profitability of each business segment. The ordinary income target has been set at 17.0 billion yen, up 3.0
billion yen or 21.4% from the previous Mid-term Business Plan, reflecting improved non-operating income and loss resulting
from reduced interest-bearing debt, extended maturities of borrowings, and decreased interest rates. The net income target has
been set at 13.5 billion yen, up 2.5 billion yen or 22.7%.
When setting these targets, the Group took into account the assumption that it would make Shinwa into a subsidiary, as
scheduled, by April 2015. Shinwa became an equity-method company in April 2012.
We will set new earnings targets for the fiscal year ending March 2014 and disclose earnings forecasts for the fiscal year
ending March 2014 when announcing the operating results for the fiscal year ending March 2013.
In terms of the financials of the Group, which will work to generate cash and profits, the shareholdersʼ equity ratio target
has been set at 35%, the net-debt target at zero, the ROE target at 10%, and the net income per share target at 81 yen. The
dividend payout ratio target has been fixed at 25% on a consolidated basis.
These targets assume that all remaining bonds (unsecured bonds worth 12.0 billion yen) issued by the Group will be
redeemed, and that all the stock acquisition rights (current exercise price: 454 yen; total number of latent shares: 26,431,200)
issued in August 2011 will be exercised.
(Billion yen) (Billion yen)
Net sales Operating
income
200
0
50
100
150
10
0
2.5
5.0
7.5
FYE 3/ ’12
6.3
9.0
FYE 3/ ’16
(Target)
CE sales and operating income
（）
1000
0
20
00
70
12/3期 13/3期
（）
16/3期
（）
OEM分野の売上高
（）
20
0
100
0
10
200
12/3期 16/3 期
（）
市販向けマルチメディアヘッドユニット
（カーナビ含む）の販売台数
（）
0
0
20
10
0
0
12/3期 16/3 期
（）
セキュリティカメラの販売計画
（）
0
0
20
0
10
0
0
12/3期 16/3 期
（）
デジタル無線 中期販売計画
Operating
income
107.3
155.0
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JVC KENWOOD Corporation
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