JVC 2013 Annual Report Download - page 7

Five years have already passed since the former Victor
Company of Japan, Limited (“JVC”) and Kenwood
Corporation (“Kenwood”) formed a capital and
business alliance with an eye toward management
integration and becoming a global leader in
specialized manufacturing.
While simultaneously forming a capital and
business partnership, we launched efforts to create
synergies. Those efforts have produced significant
results over the five-year period, and the presence of
the Car Electronics Business has grown substantially.
Following management integration in October 2008,
we focused on undertaking a major restructure and
concentrating management resources on businesses
where we can demonstrate our strengths. As a result,
the JVCKENWOOD Groupʼs earnings structure has
changed radically. In addition, the Group executed a
merger between the Groupʼs holding company and its
operating companies to establish JVC KENWOOD
Corporation, which operates in four business segments.
Thanks to your support, the Group has overcome
various difficulties and set the stage for “Profitable
Growth” over the past few years. I would like to
express my heartfelt gratitude to you all.
We will take up the challenge of
achieving Profitable Growth as a
global specialty manufacturer, creating
excitement while providing peace of
mind to people around the world
The JVCKENWOOD Group, under its corporate vision
of “Creating excitement and peace of mind for the
people of the world,” will generate “excitement” and
create “peace of mind” for its customers as a global
specialty manufacturer, while working to achieve
“Profitable Growth.”
The Japanese electronics industry is today
experiencing its most significant change since WWII.
Under these circumstances, the JVCKENWOOD
Group, in its new Mid-term Business Plan formulated
in November 2012, has defined the “smart AV field”
and the “smart safety field” as two business areas in
which it can continue to apply its strengths and
competencies in “sound,” “image,” “radio
communications,” and “entertainment.” In addition,
the Group has established the mid-term vision —“Re
Design”— as a first step in its long-term strategy
toward sustainable profitable growth. On top of this,
the Group has launched efforts to enthusiastically and
rapidly advance reforms on a Group-wide basis. This
entails continuing to introduce products that deliver
“excitement” and “peace of mind” to customers while
re-designing the lifestyles of people around the world.
The JVCKENWOOD Group will use the profits
generated through these efforts to invest in
sustainable profitable growth, strengthen its financial
base, and provide stable returns to shareholders.
Shifting to the business-to-business
(B-to-B) segment and speeding up
decision-making under the new
organizational structure
Effective June 25, 2013, the Group reorganized its
business segments into the “Car Electronics Segment,”
“Professional Systems Segment,” “Optical & Audio
Segment,” and “Entertainment Software Segment.” At
the same time, steps were taken to integrate the
audio and image development as well as production
functions, which had previously been undertaken by
the Professional Systems Business group and the
Home & Mobile Electronics Business group, into the
newly established Optical & Audio Segment. Through
the centralization of management resources, the
Group aims to increase efficiency and accelerate the
shift from consumer-use AV equipment to
professional-use radio systems, in order to enhance its
strengths in the Optical Business and enter the
Healthcare Business, a growth field.
In line with this change in business environment,
we will identify four segment leaders. Each segment
leader will manage the performance of his or her
segment as well as the proper allocation of resources.
CEO will give directions on cross-group business
processes, multiple development, etc. from the group-
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JVC KENWOOD Corporation
Management Message