Kenwood 2003 Annual Report Download

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2003
ANNUAL REPORT
For the year ended March 31, 2003

Table of contents

  • Page 1
    ANNUAL REPORT 2003 For the year ended March 31, 2003

  • Page 2
    ... a company of global prominence in Mobile & Home Multimedia Systems, utilizing our comprehensive technical prowess and products planning capability based on proprietary audio and communications technologies. Contents Financial Highlights To Shareholders Management Policy Business Results Financial...

  • Page 3
    ...Highlights Kenwood Corporation and Consolidated Subsidiaries For the years ended March 31, 2003 and 2002 Millions of yen Thousands of U.S. dollars For the year: Net sales Net income (loss) Per share data (in yen and U.S. dollars): Net income (loss) Cash dividends applicable to the year At year-end...

  • Page 4
    ... car electronics products were brisk, which, however, was offset by negative factors, including the sluggish domestic economy, as well as the effects of phasing out the personal digital cellular (PDC) terminal business and the home electronics operations in Asia. As a result, consolidated net sales...

  • Page 5
    ... products, strengthening the brand name and sharing profits among the employees, in order to dramatically improve competitiveness and profitability, while enhancing our core competence - audio and communications technologies - to the greatest extent. The Company will regain its original brand image...

  • Page 6
    ... production and sales of PDC terminals in November 2002, by drastically scaling down operations of manufacturing base Kenwood Yamagata Corporation as scheduled. Through these moves, the Company established a management framework that centers on the three core businesses: car electronics, home...

  • Page 7
    ... for the brand, has strengthened its product competitiveness in the deficit-ridden home electronics business as part of the abovementioned reconstruction measures, by reassessing its product policy. As the Company also completed the overhaul of business, cost, management and financial structures...

  • Page 8
    ... the high profitability of the car electronics and communications businesses, by reinvesting in product development and these businesses. • Inventories The Company will halve its inventories from the level of fiscal year ended March 2003, through Production Revolution efforts. • Net interest...

  • Page 9
    ... costs and generate cash flows by innovating production systems. The gains will be reinvested to develop new products and technologies, plants and equipment, enhance the brand name, and share profits among the employees, in order to substantially improve market competitiveness and profitability...

  • Page 10
    ...home theaters. The Company will evolve networked audio devices into home entertainment network systems, while putting an emphasis on the pure audio (sound) quality of products. Communications Business Targets • Maintain its 10% share of the global market for commercial radio communication systems...

  • Page 11
    ...2. Advanced multimedia; synergy effects We will pursue technologies and products that generate synergies through the combination of core techniques in the three businesses: car electronics, home electronics, and wireless radio. At the same time, we will develop strategic digitization, networking and...

  • Page 12
    ...225.6 12.3 77 6.2 (Note) Performance of other businesses Fiscal year ended March 2002 Audio-related business Sales Operating income Communications-related business Sales Operating income Fiscal year ended March 2003 12.9 0.4 5.7 0.2 45.3 0.5 24.5 2.1 10 KENWOOD Corporation Annual Report 2003

  • Page 13
    ...the latter half of the fiscal year under review. • The car electronics business earned a large income, supported by strong demand in the Americas and Europe. • The wireless radio business registered steady earnings results again just as for the preceding year. • Some other businesses sustained...

  • Page 14
    ... out of the production of cellular phones as part of the Kenwood Revitalization Action Plan. Cash flows from financing activities marked an income of 1 billion yen, partly because of third-party allotment of shares worth 2.1 billion yen. Cash flows Fiscal year ended March 2002 Cash flows from...

  • Page 15
    ... Balance Sheets Consolidated Statements of Operations Consolidated Statements of Shareholders' Equity (Capital Deficiency) Consolidated Statements of Cash Flows Notes to the Consolidated Financial Statements Independent Auditors' Report 14 18 20 21 22 23 34 KENWOOD Corporation Annual Report 2003...

  • Page 16
    ..., sales of radio equipment Net sales by business segment 2003 2002 2001 2000 1999 0 50 Audio equipment Operating income 2003 2002 2001 2000 1999 100 150 200 250 300 0 (Billions of yen) 3 6 9 12 15 (Billions of yen) Communications equipment 14 KENWOOD Corporation Annual Report 2003

  • Page 17
    ... efforts by both the home electronics and car electronics businesses, as well as robust sales of car electronics products in Japan and Europe. Home Electronics In the fiscal year under review, sales of home electronics products dropped to 41.9 billion yen or about half of their previous level...

  • Page 18
    ... fiscal year. The cell phone business was terminated in November 2002. Wireless Radio During the fiscal year ended March 2003, wireless radio products, led by terrestrial mobile radio products, performed well in the United States, Europe, Japan and the rest of Asia, including China. However, sales...

  • Page 19
    ... new products, equipment replacements, and development of software installed in products. Financial indicators The deficit in working capital at the end of the fiscal year ended March 2003 was 5.1 billion yen. The current ratio was 95.3% (78.3% for the previous fiscal year). The shareholders' equity...

  • Page 20
    Consolidated Balance Sheets Kenwood Corporation and Consolidated Subsidiaries As of March 31, 2003 and 2002 18 KENWOOD Corporation Annual Report 2003

  • Page 21
    KENWOOD Corporation Annual Report 2003 19

  • Page 22
    Consolidated Statements of Operations Kenwood Corporation and Consolidated Subsidiaries For the years ended March 31, 2003 and 2002 20 KENWOOD Corporation Annual Report 2003

  • Page 23
    Consolidated Statements of Shareholders' Equity (Capital Deficiency) Kenwood Corporation and Consolidated Subsidiaries For the years ended March 31, 2003 and 2002 KENWOOD Corporation Annual Report 2003 21

  • Page 24
    Consolidated Statements of Cash Flows Kenwood Corporation and Consolidated Subsidiaries For the years ended March 31, 2003 and 2002 22 KENWOOD Corporation Annual Report 2003

  • Page 25
    Notes to the Consolidated Financial Statements Kenwood Corporation and Consolidated Subsidiaries For the years ended March 31, 2003 and 2002 KENWOOD Corporation Annual Report 2003 23

  • Page 26
    Notes to the Consolidated Financial Statements 24 KENWOOD Corporation Annual Report 2003

  • Page 27
    KENWOOD Corporation Annual Report 2003 25

  • Page 28
    Notes to the Consolidated Financial Statements 26 KENWOOD Corporation Annual Report 2003

  • Page 29
    KENWOOD Corporation Annual Report 2003 27

  • Page 30
    Notes to the Consolidated Financial Statements 28 KENWOOD Corporation Annual Report 2003

  • Page 31
    KENWOOD Corporation Annual Report 2003 29

  • Page 32
    Notes to the Consolidated Financial Statements 30 KENWOOD Corporation Annual Report 2003

  • Page 33
    KENWOOD Corporation Annual Report 2003 31

  • Page 34
    Notes to the Consolidated Financial Statements 32 KENWOOD Corporation Annual Report 2003

  • Page 35
    KENWOOD Corporation Annual Report 2003 33

  • Page 36
    Independent Auditors' Report 34 KENWOOD Corporation Annual Report 2003

  • Page 37
    KENWOOD Corporation Annual Report 2003 35

  • Page 38
    ... Tampoi 80350, Johor Bahru, Malaysia Phone: 607(239)1401 FAX: 607(237)5948 KENWOOD ELECTRONICS (THAILAND) CO., LTD. 2019 New Pechburi Rd., Bangkapi, Huaykwang, Bangkok 10320 Thailand Phone: 66(2)318-4690 FAX: 66(2)318-4691 KENWOOD CORPORATION INDIA LIAISON OFFICE B-112, Chittranjan Park, New...

  • Page 39
    ....1 Ang Mo Kio Street 63, Singapore 569110 Phone: 65(6482)3222 FAX: 65(6482)4966 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 SHANGHAI KENWOOD ELECTRONICS CO., LTD. No. 60 Rongle...

  • Page 40
    Printed in Japan on recycled paper.