Kenwood 2003 Annual Report Download - page 2

Almost half a century ago, Kenwood started its business with the production of components for communications
equipment. Today, its business domain has expanded to include wireless radio equipment, fixed-line telephones and high-
grade audio products for the home and the car. Its operations span the entire globe. In recent years, however, the
Company has struggled to offset the losses suffered in the home audio and cellular phone businesses amidst prolonged
economic slumps in Japan itself and throughout Asia, coupled with the difficulty in dealing with the unstable Forex market.
This predicament led to the announcement of Kenwood Revitalization Action Plan, under which the Company did its
utmost to reconstruct operations through a drastic reform of its business and cost structures. As a result, the Company
achieved a "V-shaped" recovery, posting a record net income on a consolidated basis.
Furthermore, Kenwood has formulated a new corporate vision — "Creating Exciting through Surprising Ideas" and
redefined its brand image as Innovative & Intelligent. With these guidelines, we are working hard to bring forward more
value-added products to yield higher profits in our car electronics, home electronics and wireless radio businesses. We
are progressing towards our goal of becoming 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.
Note regarding forward-looking statements
Certain information in this Annual Report, such as Kenwood business plans, strategies and predictions, contains forward-looking statements that may prove to be
incorrect. Although any statements that express or involve management judgement are based on currently-available information, they involve known and unknown risks,
uncertainties and other factors that may cause the actual results to materially differ from those considered by the forward-looking statements. Potential risks,
uncertainties and other factors include, but not limited to: overall economic climate and consumer spending in Japan as well as other major countries; demand for
Kenwood's products and pressure of falling prices due to fierce competition; corporate ability to continue to develop products and cutting-edge technologies that appeal
to consumers in a highly competitive market; and currency exchange rates (especially between the Japanese yen and the U.S. dollar, as well as other key currencies in
which Kenwood carries out a large portion of its business transactions).
Financial Highlights
To Shareholders
Management Policy
Business Results
Financial Sections
Financial Review
Consolidated 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
The Kenwood Group
Corporate Data
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Profile
Contents