JVC 2012 Annual Report Download - page 9

Targeting sustainable “Profitable Growth” in a rapidly changing business environment, JVC KENWOOD Corporation
(JVCKENWOOD) reviewed its Mid-term Business Plan through the fiscal year ending March 2014 (the previous Mid-term Business
Plan), which had been formulated on September 16, 2011. The review resulted in JVCKENWOOD drawing up a new mid-term
business plan with the fiscal year ending March 2016 as the final year (the new Mid-term Business Plan) under the new business
execution system established in June 2012.
1. Outline of New Mid-term Business Plan
(1) Mid-term vision “Re Design”- Redesigning the lifestyles of people around the world
Under its corporate vision of “Creating excitement and peace of mind for the people of the world,” JVCKENWOOD generates
excitement and creates peace of mind for its customers as a global specialty manufacturer, while endeavoring to achieve
“Profitable Growth” in three ways: by concentrating on strong businesses, providing stakeholders with new value, and remaining
a company that is widely trusted by society.
A mid-term vision—“Re Design”—has been established under the Groupʼs new Mid-term Business Plan as the first step of a
long-term strategy toward sustainable “Profitable Growth.” The entire Group and each business segment will focus on
reorganizing business models as well as head office and business divisions, and on redesigning peopleʼs lifestyles around the
world to make them more comfortable and exciting, while continuing to create peace of mind.
The Group will utilize the cash and profits these efforts generate to invest in sustainable “Profitable Growth,” strengthen its
financial base, and provide stable returns to its shareholders.
(2) Key mid-term strategies
JVCKENWOOD is now utilizing funds totaling approximately 13.9 billion yen, which were procured in January 2011, to promote
M&As and a partnership strategy, including strategic alliances, as well as to plan and implement strategic investments in R&D and
capital expenditures.
Under its partnership strategy, the Group is promoting growth centering on its Car Electronics business, its Professional
Systems business, and on optical-related businesses that contribute to those two businesses. As part of these activities, the
Group formed capital and business alliances with Shinwa International Holdings Limited (Shinwa, which the Group plans to make
a subsidiary by April 2015), a car-mounted equipment company based in Hong Kong, and Syndiant, Inc. (“Syndiant”), a U.S. firm
engaged in developing and designing microminiature LCOS devices, while adding to its subsidiaries AltaSens, Inc. (“AltaSens”), a
U.S. company specializing in the development and design of CMOS image sensors.
During the new Mid-term Business Plan, the Group will reap the benefits from these enterprising investments and
strengthen its existing cooperative relationships with Garmin Ltd. (“Garmin”), a leading U.S. manufacturer of portable/personnel
navigation devices (PNDs), and the leading Japanese automotive components manufacturer DENSO Corporation (“DENSO,” in
which the Group held 3.0% shareholding as of September 30, 2012). The Group will also strive to enhance and expand its Car
Electronics and Professional Systems businesses, improve the sales contribution of the business-to-business (BtoB) segment, on
which there will be an
ongoing focus, and
increase the sales
contribution of emerging
markets, where there is
considerable room for
growth.
Business portfolio mid-term sales composition targets
- Car Electronics and Professional Systems: from 63% in FYE 3/ʼ12 to 70% in FYE 3/ʼ16
43%
44%
11%
63%
24%
11%
70%
19%
10%
FYE 3/’09 FYE 3/’10 FYE 3/’11 FYE 3/’12 FYE 3/’16
(Target)
-10%
0%
10%
Profit margin
CE+PS
HM
SE
100%
Sales composition
50%
0%
Company-wide
net profit margin
Company-wide
operating margin
CE: Car Electronics business
PS: Professional Systems business
HM: Home & Mobile Electronics business
SE: Entertainment business
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JVC KENWOOD Corporation
Special Feature: New Mid-term Business Plan Special Feature