Kenwood 2007 Annual Report Download - page 6

Kenwood, which made a clean break with its negative past legacy
upon completion of its corporate revitalization, moved into a
full-scale growth stage and is driving forward new efforts in
accordance with the second mid-term business plan “Value Creation
Plan,” which it formulated in May 2005.
The purpose of this plan was to join the billion-dollar club at an
early stage by pursuing a strategy to enhance the corporate value
toward new growth and increased profitability. Concretely speaking,
Kenwood will promote structural reforms for an earnings
turnaround of the Car Electronics and Home Electronics businesses
in response to market changes, as well as increase sales and profits
of the Communications Equipment business, our largest earnings
base.
In the previous fiscal year, Kenwood completed its preparations
for investments in strategic development and advanced technology,
sales expansion and earnings turnaround, and the time has finally
come to put its existing businesses on track for new growth,
focusing on its core business areas by managers of the next
generation. At the same time Kenwood has started to accelerate its
Efforts to create corporate value by promoting growth strategy and enhance
the corporate value beyond the limit of Kenwood’s own
—A historical first step toward reform of the industry—
growth beyond the limit of its own with the Chairman being
responsible for strategic initiatives aimed at the medium- and
long-term creation and enhancement of the corporate value.
On May 10, the conversion of Zetron, Inc., a U.S. systems-based
communications company, into a subsidiary was completed with the
aim of expansion in the Land Mobile Radio business by deployment
ranging from wireless terminal to system solution. Along with this
effort, on July 24, Kenwood concluded a capital and strategic
business alliance with Victor Company of Japan with the goal of
new evolvement into the world’s strongest car electronics
manufacturer and home audio manufacturer appropriate for the
digital/network era. Aiming to integrate their management early, in
addition to the further creation and enhancement of the corporate
value of both companies, we have taken a new, historical step
toward the reform of Japanese specialty manufacturers.
Thus we will promote more highly transparent management, try
to enhance the corporate value, and contribute to the public good
through our business operations. Your continued understanding and
support would be appreciated.
Haruo Kawahara, Chairman Kazuo Shiohata, President and CEO
To Our Stakeholders
06 Kenwood Corporation