Kenwood 2005 Annual Report Download - page 13

Portable flash memory audio: the first digital portable
audio product for the Company
Participating in F1 as an official supplier of the Team
McLaren Mercedes
Home electronics business฀
In consideration for the advent of new “digital media” for home electronics,
such as hard disks and flash memory devices and to progress in network
environments, we proceeded with the development of portable flash
memory audio and portable HDD audio systems, as well as next generation
network audio through the fusion of high quality sound, digital and
network technologies.
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2Unfolding of “New Brand Image Strategy”฀
We refined our “Brand Logo” and established our new “Brand Statement” as
our “New Brand Image Strategy” to raise the presence of our brand and
deliver new values. Our “Corporate Vision” and “Activity Guidelines,” as well
as our five “Core Values” were subject to these new developments. We also
commercialized products in new product groups for 2005, which we believe
are appropriate for the rebirth of Kenwood.
Further, we participated in F1, where cutting-edge technologies gather from
various industries around the world, as an official supplier for the Team
McLaren Mercedes and promoted our brand on a global scale with the
concept of high technical capability and reliability.
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3Reinvestment in personnel to enhance driving force behind business
operations฀
We accepted 32 recent graduates in the last term ended March 2005 recruiting new
graduates for the first time in three years. Even though we proactively recruited mid-
career personnel with an emphasis on their skills, we also made efforts to train our
employees, primarily our executives. Further, in March 2004 we completely
eliminated the pay cuts for ordinary employees and in December 2004 for executive
officers, which had been in effect since October 2002, thereby reinvesting in our
employees in an effort to enhance the driving force behind our business operations.
Basic policy for distribution of profits
Resume dividends after six terms
฀
Since the term ended March 2000, we have had the unfortunate task of suspending
dividend payments. As described previously, through the “New Financial Strategy”
that was formulated in May 2004, we were able to resolve the cumulative loss in
August of 2004 and during the past term ended March 2005 we were also able to
record surplus earnings.
Therefore to respond to the support provided to us by our shareholders, we
implemented the resumption of dividends, which was listed as one of the targets in
the mid-term business plan, the “Excellent Kenwood Plan,” one year ahead of
schedule after six terms of suspension.
Further, we plan to strategically reinvest funds on hand for even greater growth in
the future. Therefore, we paid an annual distribution of profits at JY2 per share for
regular shareholders, combined with a commemorative dividend of JY1 for the
resumption of dividends after six terms, to make a total of JY3 per share.
Furthermore, prior to distributing profits to our regular shareholders, we made
payments for the cumulative unpaid dividends for the preferred stocks
(JY126,357,786), outstanding since the issuance of the first tranche class-B preferred
stock and the dividends for the first tranche class-B preferred stock (JY3.216 per
stock) to the class-B preferred shareholders.
For details please refer to the press release “Notice Regarding Year-Ended Dividends (Resumption of
Dividend) for Fiscal Year-ended March 2005” dated May 20, 2005.
World’s first high-quality portable HDD
audio with digital amplifier
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Kenwood Corporation Annual Report 2005