Pioneer 2007 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2007 Pioneer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

PIONEER CORPORATION25
Financial Review
Year ended March 31, 2007, compared
with year ended March 31, 2006
Operating revenue
Net sales amounted to ¥792.4 billion, a 6.2% increase over
fiscal 2006. Net sales in Japan were ¥233.6 billion, up 0.4%
from fiscal 2006, and overseas net sales increased 8.8% to
¥558.8 billion. Royalty revenue decreased 45.4% from fiscal
2006 to ¥4.7 billion.
Home Electronics net sales increased 3.9% year on year to
¥368.6 billion. In terms of geographic sales, sales in Japan
declined 19.7% to ¥65.9 billion due to a drop in OEM (original
equipment manufacturing) sales of plasma displays, while
overseas sales increased 11.0% to ¥302.8 billion due to
increased sales of own-brand plasma displays. Sales of plasma
displays declined slightly due to decreased overall OEM sales,
despite increased sales of own-brand models in Europe and
North America. Plasma display sales accounted for approxi-
mately 48% of Home Electronics sales. Meanwhile, sales of
DVD drives, DVD-related devices and DJ equipment rose, while
sales of DVD recorders fell year on year.
Car Electronics sales increased 8.3% year on year to
¥357.8 billion due to higher sales of both car navigation
systems and car audio products. In car navigation systems,
consumer-market sales rose mainly in Japan and OEM sales
also increased mainly in North America. In car audio products,
consumer-market sales increased in Central and South America
and Russia, while OEM sales declined in North America, but
rose in Japan and China. Total OEM sales in this segment
accounted for approximately 36% of Car Electronics sales in
fiscal 2007. In terms of geographic sales, sales in Japan rose
7.4% to ¥126.3 billion due to increased sales of car navigation
systems for the consumer market and car audio products for
OEM. Overseas sales increased 8.7% to ¥231.5 billion due
mainly to sales growth of car audio products for consumer
markets in Central and South America and Russia and OEM car
navigation systems in North America.
Royalty revenue from Patent Licensing decreased 45.4%
year on year to ¥4.7 billion. This decrease was attributable to
the impact of the expiration of some patents licensed to the
optical disc industry.
Net sales for Others rose 7.8% year on year to ¥66.0
billion. This mainly reflected higher sales of factory automation
systems and passive-matrix organic light-emitting diode
(“OLED”) displays, despite lower sales of speaker units for
cellular phones. In terms of geographic sales, sales in Japan
increased 24.9% to ¥41.5 billion due to higher sales of both
factory automation systems and OLED displays, while overseas
sales were down 12.4% at ¥24.5 billion due to declining sales
of speaker units for cellular phones.
Other income
Other income includes interest income, gain on sale of fixed
assets and others. Interest income increased from ¥2.7 billion
to ¥5.9 billion mainly due to increase of interest rates. While
gain on sale of fixed assets increased, others decreased from
¥6.8 billion to ¥2.3 billion due mainly to a decrease in the gain
on sale of available-for-sale securities.
Cost and expenses
Cost of sales increased to ¥614.4 billion from fiscal 2006’s
¥593.2 billion. Cost of sales for fiscal 2007 represented
77.1% of operating revenue, down by 1.5 percentage points
from 78.6% for fiscal 2006. This decrease is chiefly due to
the benefits of business restructuring measures. Particularly,
profitability of Home Electronics products such as plasma
displays was improved.
Results of Operations