JVC 2013 Annual Report Download - page 19

The Professional Systems Segment consists of two businesses: the
Communications Business and the Professional & Healthcare
Business. The former deals with land mobile radio and its systems,
license-free transceivers, amateur radio sets, and sales of cellular
phones. The latter business handles security cameras and systems,
professional audio equipment and facilities, professional video
cameras, and professional monitors including medical displays.
The Communications Business boasts the worldʼs second
largest market share in the mainstay area of land mobile radio
equipment. The business achieved this share by combining radio
technologies, which have been cultivated over many years since
the era of amateur radio equipment, with cutting-edge digital and
network technologies. Featuring a high overseas sales ratio and
high profitability, this business supplies highly reliable professional
radio devices and systems to the public safety sector (police and
fire departments), the public service sector (electricity, water, and
gas), and the private sector (railways, buses, hotels, and plants)
around the world. This business is focusing on the market shift
from analog to digital equipment. Hence, it is moving ahead with
the development and sale of digital land mobile radio equipment
and systems compatible with the worldʼs various digital radio
formats. It is also optimizing its production system and
strengthening its sales networks.
The Professional & Healthcare Business provides highly
reliable, professional-use video and audio equipment, developed
and manufactured by the Optical & Audio Segment based on the
advanced image shooting, display, and acoustic technologies
offered to such markets as electrical facilities, education and the
public sector, private corporations, and amusement facilities.
While boasting high market shares in the domestic electrical and
amusement facility markets, JVCKENWOODʼs security cameras are
highly rated for their features. These include sharp image quality
day and night, ease of operability and outdoor installation as
security cameras that are deemed to be among the most effective
in preventing crimes and ensuring people remain safe and secure.
Meanwhile, the Companyʼs professional video cameras, which
have been adopted by multiple major broadcasting stations, are
mainly increasing their presence overseas.
We have continued to improve our management base by
reducing expenses and fixed costs thanks to the effects of
structural reforms implemented up to the fiscal year ended March
2011. The effects of the Thailand floods due to heavy downpours
in Central Thailand from July 2011 were addressed by the first
quarter of the fiscal year ended March 2013. In the ensuing
period, sales have recovered in full.
After the conversion of JVCKENWOOD Nagaoka (former TOTOKU
Nagaoka) into a consolidated subsidiary on July 1, 2013, we are
taking steps to expand the Medical Display Business by positioning
it as a core business in efforts to enter the Healthcare Business on
a full-scale basis, while focusing on putting forward wireless
intercoms, security systems, and other proposals for in-hospital
communication.
We recognize that the shift to digital models and the
systematization of land mobile radio equipment present a host of
business opportunities. Therefore, the Communications Business
will work to develop solution systems by integrating wireless and
imaging technologies with an eye on the broadband market. The
aim is then to grow new business domains and to expand sales.
Specifically, we will work on expanding large-scale, wide-area
network systems by making the most of JVCKENWOODʼs
proprietary NEXEDGE® digital professional radio and network
solutions, and on developing and launching digital radio
equipment for the Chinese, Asian and European markets. We will
also work on expanding sales of digital radio systems for public
safety in North America in cooperation with the EADS Group of
companies, as well as communications systems for domestic
broadcasting stations and telecommunications carriers by utilizing
the network systems of Zetron, Inc., a U.S. subsidiary engaged in
radio communications systems. In addition, we will launch land
mobile radio equipment for taxi companies in anticipation of the
end of analog transmission in Japan.
To expand the Professional & Healthcare Business, we will
position IP security cameras as the core products to strengthen
the Solution Business including system design and
implementation, expand the sales of cameras for broadcasting
stations, and strengthen our competitive advantages in the
Professional Video Camera and Security Camera Businesses, etc.
by converting AltaSens, Inc., which handles CMOS censors, into a
subsidiary. We will also expand our Video Production Business,
increase the sales of 4K video cameras, etc., and expand
businesses by integrating strategic products for emerging markets,
radio communication technologies and video technologies, as well
as ensuring enhanced compatibility with smartphones, etc.
■Net sales and operating income (Billions of yen)
■Major Products
Land Mobile Radio Equipment, Video Surveillance Equipment, Audio Equipment,
Video Equipment, Professional Display Equipment, Medical Display Equipment
100.5
107.8
108.4 107.3
2.5
4 .1
7.9
6.3
4.0
-1. 3
3.6 3 .1
1.1
-10 . 8
-0.8
1.7
2.0
-1.7
2.2
1. 2
91.8
91.4
92.5 93.5
68.8
141.8
100.1 77. 5
40.9
44.9
42.9
36.7
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
■ Net sales

Operating
income
17
JVC KENWOOD Corporation
Business Overview