Kenwood 2002 Annual Report Download

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2002
For the year ended March 31, 2002
ANNUAL REPORT

Table of contents

  • Page 1
    ANNUAL REPORT 2002 For the year ended March 31, 2002

  • Page 2
    ...in the world in the field of Mobile & Home Multimedia Systems, utilizing our collective strength in audio and communications technologies. Contents Financial Highlights To Shareholders Message from the President - Rebuilding Kenwood New Management Policies Financial Review 2002 Consolidated Balance...

  • Page 3
    ..., 2002. Net Sales 2002 2001 2000 1999 1998 (Billions of yen) Net Income (Loss) 2002 2001 2000 1999 1998 0 100 200 300 (27) (Billions of yen) (4) (2) 0 2 4 Net Income (Loss) per Share 2002 2001 2000 1999 1998 (160) (Yen) (20) (10) 0 10 20 30 KENWOOD Corporation Annual Report 2002...

  • Page 4
    ... yen used to repay the Company's borrowings and 12.7 billion yen invested in dies and software development that are vital to our current and future business. Kenwood's current operating income and free cash flow point to the Company's growing strength. 02 KENWOOD Corporation Annual Report 2002

  • Page 5
    ...Company in an effort to rebuild the manufacturing industry, has vowed to undertake a debtfor-equity swap amounting to 25 billion yen before the end of 2002. At the same time, we were able to receive further support from our investors and creditors in finalizing special arrangements for a three-year...

  • Page 6
    ... in open board meetings. On the other hand, executive officers will focus on the management of respective business units, giving higher priorities to stringent inventory control and cash flow management. In order to support the sweeping changes for our bold reforms, we have established the new...

  • Page 7
    ...to the car electronics and wireless radio products, while the sale of home electronics products will be limited to America and three major markets in Europe. Domestically, the number of sales offices for home electronics will be also reduced by half, with a KENWOOD Corporation Annual Report 2002 05

  • Page 8
    ...in fixed costs is expected by the move. Home theater products are gaining popularity in the European and American markets. Our sights are now set on the Japanese market. Malaysia will be the future production center for car and home electronics products. 06 KENWOOD Corporation Annual Report 2002

  • Page 9
    ... of New Stock to Third Parties, Unprecedented in Japan During the process of making the Kenwood Revitalization Action Plan, the goal was set to complete the rebuilding process and erase the negative net worth by year-end March 2004. However, The Asahi Bank, Ltd., our long-time lender and a supporter...

  • Page 10
    ...and car navigation systems would increase in value if they could be used as integral parts of larger systems. I would like to remind everyone of Kenwood's technological leadership in radio communications technology much needed for establishing connections between mobile and home electronics products...

  • Page 11
    ... Hi-Fi component systems, 2) all-in-one radio cassette players and minicomponent systems, 3) home theaters; and 4) networked audio devices. While Kenwood offers products in all four categories, the Company's recent strategy to pursue a high market share in the low-priced, all-in-one audio market (in...

  • Page 12
    ...true home multimedia system is now available in the US. The wireless radio business is a stable source of income for Kenwood. The commercial radio products, holding a significant share of the world's market, spearhead the Company's revitalization efforts. 10 KENWOOD Corporation Annual Report 2002

  • Page 13
    ... radio communication system called LMR (Land Mobile Radio). LMR is most commonly used for public safety, by fire and police departments and emergency medics, throughout the world. Its popularity is also expanding in the general area of business and industry. At the moment, Motorola and Kenwood...

  • Page 14
    ....0 billion yen, set aside for implementation of the Kenwood New Restructuring Plan. Consequently, the Company reported a Consolidated Performance Sales During the year ended March 2002, domestic sales for home audio and car audio products dropped, due mainly to falling unit prices and the stagnant...

  • Page 15
    ...this problem, the Company has already introduced during the year a DVD recorder/player and a network audio system for the domestic market. It plans to further shift its business to high-end products by withdrawing from the low-end market and introducing more new products such as home-theater systems...

  • Page 16
    ... is land mobile radio (LMR) sold in the US, Europe, and Asia (including Japan). Currently, Kenwood is putting more emphasis on systems integration, such as equipment used at base stations, building on its foothold established by the sale of mobile terminals. During this fiscal year, a new compact...

  • Page 17
    ... the previous year. Capital Expenditure Total capital expenditure for the term ended March 2002 decreased by 10.3% from the previous year to 12.4 billion yen. The majority was spent in purchases of tools and dies for new products. Financial Indicators The deficit in working capital at the end of the...

  • Page 18
    Consolidated Balance Sheets Kenwood Corporation and Consolidated Subsidiaries As of March 31, 2002 and 2001 16 KENWOOD Corporation Annual Report 2002

  • Page 19
    KENWOOD Corporation Annual Report 2002 17

  • Page 20
    Consolidated Statements of Operations Kenwood Corporation and Consolidated Subsidiaries For the Years ended March 31, 2002, 2001, and 2000 18 KENWOOD Corporation Annual Report 2002

  • Page 21
    Consolidated Statements of Shareholders' Equity (Capital Deficiency) Kenwood Corporation and Consolidated Subsidiaries For the Years ended March 31, 2002, 2001, and 2000 KENWOOD Corporation Annual Report 2002 19

  • Page 22
    Consolidated Statements of Cash Flows Kenwood Corporation and Consolidated Subsidiaries For the Years ended March 31, 2002, 2001, and 2000 20 KENWOOD Corporation Annual Report 2002

  • Page 23
    Notes to the Consolidated Financial Statements Kenwood Corporation and Consolidated Subsidiaries For the Years ended March 31, 2002, 2001, and 2000 KENWOOD Corporation Annual Report 2002 21

  • Page 24
    Notes to the Consolidated Financial Statements 22 KENWOOD Corporation Annual Report 2002

  • Page 25
    KENWOOD Corporation Annual Report 2002 23

  • Page 26
    Notes to the Consolidated Financial Statements 24 KENWOOD Corporation Annual Report 2002

  • Page 27
    KENWOOD Corporation Annual Report 2002 25

  • Page 28
    Notes to the Consolidated Financial Statements 26 KENWOOD Corporation Annual Report 2002

  • Page 29
    KENWOOD Corporation Annual Report 2002 27

  • Page 30
    Notes to the Consolidated Financial Statements 28 KENWOOD Corporation Annual Report 2002

  • Page 31
    KENWOOD Corporation Annual Report 2002 29

  • Page 32
    Notes to the Consolidated Financial Statements 30 KENWOOD Corporation Annual Report 2002

  • Page 33
    Independent Auditors' Report KENWOOD Corporation Annual Report 2002 31

  • Page 34
    ... 15-80, Takarada 1-chome, Tsuruoka-shi, Yamagata, 997-0011, Japan Phone: 81(235)24-4811 Fax: 81(235)24-7495 EUROPE Kenwood Electronics Europe B.V. Amsterdamseweg 37, 1422 AC Uithoorn, The Netherlands Phone: 31 (0297)-519900 Fax :31 (0297)-519990 32 KENWOOD Corporation Annual Report 2002

  • Page 35
    ... Certification Kenwood Electronics Technologies (M) Sdn Bhd 8, Jalan Padu, Kawasan Perindustrain Tampoi, 80350 Johor Bahru, Johor, Malaysia Phone: 60(7)237-1261 Fax: 60(7)237-1297 Receives ISO 9002 Certification ISO 14001 Certification (As of October 1, 2002) KENWOOD Corporation Annual Report 2002...

  • Page 36
    ฀ ฀ ฀ ฀ Printed in Japan on recycled paper.