Kenwood 2001 Annual Report Download

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2001
ANNUAL REPORT
For the year ended March 31, 2001

Table of contents

  • Page 1
    ANNUAL REPORT For the year ended March 31, 2001 2001

  • Page 2
    ... radio equipment, telephones, high-grade audio products for homes and automobiles, and other electronics equipment. Its operation also stretches throughout the world to include not only Japan, the US, and Europe, but also Asia, Africa, and Latin America. In recent years, Information Technology...

  • Page 3
    ...31, 2001. Net Sales 2001 2000 1999 1998 1997 0 (Billions of yen) Net Income (Loss) 2001 2000 1999 1998 1997 100 200 300 (22) (Billions of yen) (4) (2) 0 2 4 Net Income (Loss) per Share 2001 2000 1999 1998 1997 (150) (Yen) (20) (10) 0 10 20 30 KENWOOD Corporation Annual Report 2001 01

  • Page 4
    ... as well. Corporate Performance Under these circumstances, Kenwood recorded a solid figure in terms of sales for the year ended in March 2001 of 303.4 billion, an increase of 10.5% from the previous year. In the profit and loss column, however, a sharp price fall in home audio and car audio products...

  • Page 5
    ... large scale and strengthening of the management system. The new Home Electronics Division, Car Electronics Division, Communications Division, and Devices Division which have the functions for both of manufacturing and selling were formed on May 21, 2001. These organizations are not companies in the...

  • Page 6
    ... newly established Production Control Div. This office is responsible for defining the objectives of each factory and for restructuring the manufacturing system on a global scale disregarding divisional interests. The Committee for SCM (Supply Chain Management), the Committee for Technology Planning...

  • Page 7
    .... and optical microphones. These reforms in the company's business structure are difficult to achieve if management resources are to be sought after within the group alone. Thus, we plan to strengthen our joint development efforts and sales partnerships with computer manufacturers, car electronics...

  • Page 8
    ...of Net Sales 76.4% Car Audio Sales of car audio for the year ended in March 2001 were up by 11.6% to 120.5 billion but operating income declined. Falling market prices in Japan along with the insufficient product supply caused by the worldwide shortage in major components during the first half led...

  • Page 9
    ... of a new model that was originally scheduled in the first half of the term, another model introduced late in the year turned out to be very successful. Regarding commercial radios and land mobile radio (LMR), the mainstay products in the communications business, sales in Asia continued to...

  • Page 10
    ... Home Audio Product Development Car Audio Manufacturing Product Development Cellular Phones & Telephones Manufacturing Communications Equipment Wireless Radios Overseas Sales Since April 2001, Kenwood has been undertaking a total reform of its business operations based on the mid-term...

  • Page 11
    ... home and personal use, such as home audio, personal audio, audio devices for PC, and home theater systems. Product Development Domestic Sales Home Electronics Division Manufacturing Communications Equipment Division Develops, produces, and distributes various commercial and amateur radios, radio...

  • Page 12
    ... and networking technology with Kenwood's core technology in digital & analog audio and market them by utilizing the power of Kenwood brand that has been a household name for decades. Sadaharu Katoh Director & Division Manager, Home Electronics Division 10 KENWOOD Corporation Annual Report 2001

  • Page 13
    ... new products by integrating audio, navigation, and communications functions - products that are unique to Kenwood in their nature, representing the three business sectors of the company. Haruo Kasuya Director & Division Manager, Car Electronics Division KENWOOD Corporation Annual Report 2001...

  • Page 14
    ... a vehicle management system utilizing GPS in Japan and to introduce new models of low-power transceivers, which are gaining in popularity for amateur radio and business use, both in and outside Japan. With these measures, we will try to expand the sales in every possible way. Enhanced development...

  • Page 15
    ...and inquiries are coming in from CATV operators. In the future, we plan to develop products with added values, such as a PC card for receiving High Definition broadcast, to expand the product range. Tsuneo Abe Director & Division Manager, Devices Division KENWOOD Corporation Annual Report 2001 13

  • Page 16
    ...RW drive, MD-LP compatible audio systems, and car audio receivers with a MP3 decoder, as well as MD built-in portable stereo players. On the other hand, sales from the communications business were 71.6 billion (an increase of 13.7%). While the LMRs (Land Mobile Radio - commercial radio transceivers...

  • Page 17
    ... car audio businesses was the major reason. Despite gaining some proceeds from decrease of time deposits and sales of investment securities, net cash used in investing activities was 4.8 billion (decrease of 4.4 billion from the previous year), as the company spent 13.1 billion in acquiring property...

  • Page 18
    ... subsidiaries and associated companies Software Deferred tax assets (Note 10) Lease deposits and other Financial statement translation adjustments Total investments and other assets Total See notes to consolidated financial statements. 16 KENWOOD Corporation Annual Report 2001

  • Page 19
    ...-500,000,000 shares issued and outstanding-147,333,995 shares Additional paid-in capital Revaluation surplus (Note 4) Accumulated deficit Financial statement translation adjustments Less: Treasury stock, at cost Total shareholders' equity Total KENWOOD Corporation Annual Report 2001 17

  • Page 20
    ... of investment securities Loss on disposal of inventories Loss on sales of property, plant and equipment, net Additional retirement allowances paid to employees Retirement allowances paid to directors and corporate auditors Loss on closing of business Loss on provision for doubtful receivables Other...

  • Page 21
    ...Cash dividends paid Transfer to employee welfare fund Bonuses paid to directors and corporate auditors Adjustment to retained earnings from consolidation of additional subsidiaries Ending balance See notes to consolidated financial statements. KENWOOD Corporation Annual Report 2001 19

  • Page 22
    ... in time deposits, net Proceeds from sales of marketable securities, net Proceeds from sales of property, plant and equipment Proceeds from sales of investment securities Purchases of property, plant and equipment Purchases of investment securities Purchases of software Other, net Net cash used in...

  • Page 23
    ... of the significant accounting policies adopted by Kenwood Corporation ( the "Company") and its consolidated subsidiaries in the preparation of the accompanying consolidated financial statements. yen at the current exchange rates at each balance sheet date, while long-term receivables and payables...

  • Page 24
    ... depreciation Net leased property Thousands of U.S. dollars Acquisition cost Accumulated depreciation Net leased property Machinery and equipment ฀ Tools, furniture and fixtures ฀ Others ฀ Total ฀ ฀ ฀ 22 KENWOOD Corporation Annual Report 2001

  • Page 25
    ... and 2001, respectively, the Company elected a one-time revaluation of its own-use land to a value based on real estate appraisal information as of March 31, 2000. The resulting land revaluation surplus represents unrealized appreciation of land and is stated, net of income taxes, as a component of...

  • Page 26
    ... a guarantor for borrowings of employees aggregating 14 million ($113 thousand). At March 31, 2001, the Company had cancelable and noncancelable long-term lease agreements, principally for office space, machinery and computer equipment. Rental expense for 24 KENWOOD Corporation Annual Report 2001

  • Page 27
    ...related to audio equipment. Operations by business segment: Communications equipment segment: Amateur radios, UHF CB transceivers, land mobile radios, telephones and personal digital cellular telephones. Operations by business segment and by geographic area for the years ended March 31, 2001, 2000...

  • Page 28
    ... Capital expenditures Operations by geographic area: Millions of yen Japan America Europe Asia Other Total Corporate assets and eliminations Consolidated 2001 Net sales: Sales to customers Intersegment sales Total Operating income (loss) Identifiable assets 2000 Net...

  • Page 29
    ... For the Years ended March 31, 2001, 2000 and 1999 To the Board of Directors and Shareholders of Kenwood Corporation: We have examined the consolidated balance sheets of Kenwood Corporation and consolidated subsidiaries as of March 31, 2001 and 2000, and the related consolidated statements of...

  • Page 30
    ...Ogawahigashi 1-chome, Fax: 65 (482) 4966 Akiruno, Tokyo, 197-0822, Japan Kenwood Electronics Singapore Phone: 81 (42) 559-6111 Pte. Ltd. Fax: 81 (42) 532-7015 1 Genting Lane #07-00, Kenwood Building, Singapore 349544 Phone: 65 (741) 3336 Fax: 65 (741) 3633 28 KENWOOD Corporation Annual Report 2001

  • Page 31
    Corporate Data Board of Directors Kenwood Service Corporation 2-5032, Hironodai Zama, Kanagawa, 228-0012, Japan Phone: 81 (462) 56-9781 Fax: 81 (462) 56-9062 Kenwood TMI Corporation 16-2, Hakusan 1-chome, Midori-ku, Yokohama, Kanagawa, 266-8525, Japan Phone: 81 (45) 939-6262 Fax: 81 (45) 939-6263 ...

  • Page 32
    14-6, Dogenzaka 1-chome, Shibuya-ku, Tokyo 150-8501, Japan Phone : 81(3)5457-7111 Fax : 81(3)5457-7110 URL: http://www. kenwood.com Printed in Japan on recycled paper.