Kenwood 2013 Annual Report Download

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2013

Table of contents

  • Page 1
    2013

  • Page 2
    ... Group Financial Highlights Management Message Management Policy and Business Strategy Outline of Business Research and Development Activities Brand Strategy 1 2 3 4 7 12 22 24 Environment and Social Activities Corporate Governance Risk Management Management Team Corporate History Network Corporate...

  • Page 3
    ...rapidly changing electronics sector and factors including technology, demand, price, competitive environment, changes in economic environment, exchange rate fluctuations and many other factors may adversely impact management results or the financial condition of the Company. JVC KENWOOD Corporation...

  • Page 4
    ...trusted by society. Sales Composition for FYE 3/'13 Corporate Brand Car Electronics (33%) Professional Systems （30%） Product/Business Brand Optical & Audio （22%） Entertainment Software （13%） Others ＊ The Company shifted to a new segment system on June 25, 2013. The graphs provide...

  • Page 5
    Financial Highlights Financial Highlights JVC KENWOOD Corporation and Consolidated Subsidiaries Fiscal Year ended March 31 Net sales...activities Number of ...stock consolidation of its common shares effective August 1, 2010. ※2. (Equity - Minority interests) ÷ Total assets JVC KENWOOD Corporation 3

  • Page 6
    Management Message JVCKENWOOD is committed to "Re Design" ― re-designing the lifestyles of people around the world President, Representative Director and Chief Executive Officer (CEO) Shoichiro Eguchi 4 JVC KENWOOD Corporation

  • Page 7
    ... Segment," and "Entertainment Software Segment." At the same time, steps were taken to integrate the audio and image development as well as production functions, which had previously been undertaken by the Professional Systems Business group and the Home & Mobile Electronics Business group, into the...

  • Page 8
    ..." and attain highly transparent and reliable management. To this end, through the 5th Ordinary General Meeting of Shareholders held on June 25, 2013, we have established a new business execution system led by active members of the Board of Directors, who are supported by internal experts with in...

  • Page 9
    ... with video Smart AV field JVCKENWOOD's new value domains Mobile phone base station Smart safety field Radio base station AV accessory Cameras compatible with networks Audio systems in combination with smartphones High-resolution projectors Innovative products High-resolution music software...

  • Page 10
    ... Communications Business (Professional Systems Segment) ・ Development and sales of professional digital radio equipment and systems that are compatible with ・ Optimization of production systems and strengthening of sales networks â...±) Entertainment Software Segment ・ Cultivate and nourish new...

  • Page 11
    ... cameras and security cameras â...±) Consumer Business (Car Electronics Segment) ・ Enhance marketability of flash memory type car navigation systems for the domestic market, expand sales ・ Expand the line-up of display audio systems for overseas markets, and increase sales ・ Develop emerging...

  • Page 12
    ... Production Composition (FYE 3/'13) Europe （1%） Japan （9%） 1) Reduction in foreign exchange fluctuation risks relating to operating income and loss Regional Sales Composition (FYE 3/'13) Asia & others （12%） Europe （14%） Japan （45%） Asia (including China) （90%） Americas...

  • Page 13
    ...former JVC and the former Kenwood. As a result, the number of the Groupʼs sales subsidiaries decreased to about 30 as of the end of March 2013 from approximately 40 as of the end of March 2012. We will continue to integrate overseas sales companies and offices in line with the new mid-term business...

  • Page 14
    ...-market Car Audio Systems for After-market In-Vehicle Custom Fit Speaker CD/DVD Drive Mechanisms for Car-mounted Equipment Optical & Audio Segment (Business sales ratio: 22%) Action Camera Full HD Memory Camcorder Stereo Headphones Inner-ear Headphones All-in-one Tower Design Audio System...

  • Page 15
    ...Systems Segment (Business sales ratio: 30%) Digital Land Mobile Radio "NEXEDGE®" VoIP Radio Dispatch System Amateur Radio License-free Transceiver Professional Video Camera Recorder Security Video Camera Emergency Broadcasting Equipment Medical Image Display Systems Entertainment Software...

  • Page 16
    Car Electronics Segment The JVCKENWOOD Group will strengthen its OEM Business and aim ahead to commercialize new growth business domains. As a part of these efforts, the Group will shift from the after-market to the original product market. 14 JVC KENWOOD Corporation

  • Page 17
    ... same time, 3/'10 we have further enhanced our cost competitiveness by integrating production and procurement. As a result, we have achieved the largest share in the 2.2 44.9 European and U.S. after-market with the Consumer Business for car navigation and car audio systems leading to our large-scale...

  • Page 18
    Professional Systems Segment In order to provide radio, image pickup, video, and acoustic technologies to professionals, we will develop systems that offer excitement and peace of mind to people across the world. 16 JVC KENWOOD Corporation

  • Page 19
    ...land mobile radio equipment and systems compatible with the worldʼs various digital radio formats. It is also optimizing its production system and strengthening its sales networks. The Professional & Healthcare Business provides highly reliable, professional-use video and audio equipment, developed...

  • Page 20
    Optical & Audio Segment With its sights focused on shifting the core of its growth from the Consumer Business to the Professional Systems Business, the JVCKENWOOD Group has enhanced its competitiveness by integrating its development and production resources. 18 JVC KENWOOD Corporation

  • Page 21
    ...Home Audio, AV Accessories, Projectors, Displays, 2.2 Optical Pickups for Car-mounted Equipment 44.9 42.9 1.2 2.0 36.7 40.9 The JVCKENWOOD Group had been allotting its development and production resources related to optical devices -1.7 and audio systems to the Home & Mobile Electronics Business...

  • Page 22
    Entertainment Software Segment We will expand activities in an effort to become a total entertainment business and promote the expansion of the Original Equipment Manufacturer (OEM) Business. 20 JVC KENWOOD Corporation

  • Page 23
    ... promotion, as well as in music and video content production, are turned into hits and utilized in different industries and business categories. In December 2012, Victor Entertainment launched Space Sound Design Solution "KooNeâ„¢," which uses a high-resolution sound system storing about three times...

  • Page 24
    ... AV-integrated car navigation systems developed in collaboration with Garmin Ltd., a market leader of Portable/Personal Navigation Devices (PND), and display audio systems conforming to the Garmin navigation application for iPhone. Users of smartphone-based car navigation systems and Internet radio...

  • Page 25
    ... reinforcing sales systems employing innovative new manufacturing from the perspectives of emerging countries. With regard to land mobile radio equipment, one of its mainstay products, JVCKENWOOD conducted a thorough field study on lifestyles and the environment in which radio equipment is used in...

  • Page 26
    ... Car electronics equipment Audio equipment â-¶ Land mobile radio equipment â-¶ â-¶ Music, video, animation, and game software Studio operations â-¶ Artist management â-¶ Concerts and events â-¶ Spatial design using special sound effects â-¶ â-¶ â-¶ Music and video software JVC is a global brand...

  • Page 27
    ... Group's core businesses, as well as an information communication base for conducting community-based event activities. A large electronic billboard located in Times Square in New York serves as a JVCKENWOOD's information communication base for introducing its businesses. JVC KENWOOD Corporation...

  • Page 28
    ...Reducing power consumption in both use products (disassembly, resource conservation, and more) ・Encourage switching to safe substitutes â-Reduce and recycle waste production and business bases ・Zero waste emissions at global manufacturing sites â-Company-wide promotion of â-Development...

  • Page 29
    ... a thorough management system, actually screening JVCKENWOOD Group phthalates to verify that no controlled Environment substances are contained in our products, not database to mention globally developing products that conform to the RoHS directive. JVCKENWOOD Customers around Business Partners the...

  • Page 30
    ... Eco-Products 2012 -Under the theme of "Feeling the Earth"The JVCKENWOOD Group is developing products and services that provide customers with excitement and peace of mind, the creating of which was adopted as our corporate vision, by making the most of the video and audio elemental technologies it...

  • Page 31
    ... athletes with disabilities The Italian sales company continues to offer sponsorship to Fabrizio Macchi, a cycling medalist of the Paralympic Games, the worldʼs most famous competition. For us, his stance to face difficulties serves as a good example of how to live. JVC KENWOOD Corporation 29

  • Page 32
    ...ʼs main business partners, etc.) based on its independence standards and policies, which are stipulated in the "guideline for the governance of listed companies" issued by the Tokyo Stock Exchange ("TSE"). Since June 25, 2013, KENWOOD has appointed three external directors to its Board, Koji...

  • Page 33
    ... Committee Information Disclosure Council PL Board Environment Board Entertainment Software Segment Optical & Audio Segment Professional Systems Segment Car Electronics Segment Professional Business Support Division Corporate Division JVCKENWOOD Group Companies JVC KENWOOD Corporation 31

  • Page 34
    ...June 25, 2013 was ten, of which three persons are directors or executives of main overseas subsidiaries (holding concurrent positions). These subsidiaries function as the bases for conducting internal audits. To audit the execution of business and internal controls, the Corporate Audit Office, which...

  • Page 35
    ... IT Production Sales Logistics Finance General Affairs Public Relations Development & Design Human Resources Car Electronics Segment Professional Systems Segment Optical & Audio Segment Entertainment Software Segment CS Professional Business Support Division Corporate Division, Head Office...

  • Page 36
    ... Division Akira Suzuki Senior Vice President & Executive Officer (responsible for Infrastructure Technologies), General Executive of Communications Equipment Division, Assistant to CIO, Emerging Market Planning Division ＊ Concurrently serving as Director of the Board. 34 JVC KENWOOD Corporation

  • Page 37
    ... International Holdings Limited Masatoshi Miyamoto Operating Officer, General Executive of Audio Division, Emerging Market Planning Division, President of Kenwood Home Electronics Corporation Masayuki Suzuki Operating Officer, CIE of Professional & Healthcare Division, President of Video-Tech...

  • Page 38
    ... Business Jul. Functions in Japan and abroad, such as planning, technologies, marketing, quality assurance, and production, with the exception of sales, for the Home Audio Business of JVC and Kenwood were integrated into JVC in July 2010 Dec. The JVCKENWOOD Group launched a car navigation system...

  • Page 39
    ... Entered the commercial wireless radio equipment field in Japan Entered the car audio field in the U.S. Entered the business & industry sector of commercial wireless radio field in the U.S. (Photo â'§) Renamed Kenwood Corporation Developed the radio systems used in F1 world championship races...

  • Page 40
    ... Global） Network (Global) (87 subsidiaries and affiliated companies in total) As of September 30, 2013 Global Affiliated Manufacturing Company Company Name JVC America, Inc. Kenwood Electronics Bretagne S.A. JVCKENWOOD Technologies Singapore Pte. Ltd. JVC Manufacturing Malaysia Sdn. Bhd. Kenwood...

  • Page 41
    ... management Repair of electric equipment Software development and related support Sales and other operations relating to audio and communications equipment Sales agency of mobile phones; Operations and other support for Softbank shops Sales of home electronics products, etc. After-sales services...

  • Page 42
    Corporate Data Corporate Data Company Name: Business Segments: JVC KENWOOD Corporation Controlling and managing the business activities by operating the Car Electronics Business, Professional Systems Business, Optical & Audio Business and Entertainment Software Business and owning shares and ...

  • Page 43

  • Page 44
    3-12, Moriyacho, Kanagawa-ku, Yokohama-shi Kanagawa, 221-0022, Japan For further information, please contact: Public and Investor Relations Dept., Corporate Strategy Div. Tel: +81-(0)45-444-5232 Fax: +81-(0)45-444-5239 E-mail: [email protected] â'¸2013 JVC KENWOOD Corporation JK0007