Pioneer 2009 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2009 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 54

  • 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

Annual Report 2009 5
Improving the Company’s Financial Position
Given the funding requirements for projected business restructuring expenses in fiscal
2010 and the redemption of convertible bonds with stock acquisition rights in fiscal
2011, we are working to generate cash and boost equity capital. This is also to
ensure that we achieve the targets of our medium-term business plan.
We are working to generate cash mainly by reducing inventories and accelerating
trade receivables collections, curbing capital expenditures, cutting directors’/executive
officers’ remuneration and employees’ salaries, and selling idle assets.
In regard to boosting equity capital, Pioneer continues to examine possibilities for
financial partnerships through negotiations with potential sponsors. The Board of
Directors resolved on April 28, 2009 to raise funds through a third-party allotment of
shares to Honda Motor Co., Ltd. Deliberations with Honda Motor Co., Ltd. as to the
terms such as issue date and other matters are ongoing as we consider the status of
negotiations with other potential sponsors.
We Have Devised the Following Medium-Term Business Plan.
While steadily implementing this restructuring, we are determined to restore
profitability and achieve future growth by executing the following measures based on
our medium-term business plan:
Car Electronics Business
In the core Car Electronics business, in fiscal 2010 we are implementing drastic
restructuring to boost our earnings power in existing domains while building an
operating structure that can quickly respond to changes in the business environment
so that we can expand business when the auto market recovers.
Over the medium term, we aim to expand the Car Electronics business by focusing
on products and markets that retain high growth potential. In the consumer-market
business overseas, we are looking to introduce affordably priced models of car
navigation systems and car AV products, and to actively develop business centered
on car AV products in newly emerging economies. In Japan, we aim to stimulate new
demand by establishing a telematics business, which was developed through the
new Air Navi series.
In the OEM business, we will bolster ties with major clients Toyota Motor
Corporation and Honda Motor Co., Ltd. By harnessing proposal capabilities honed in
the consumer-market business, we will work to expand businesses with an emphasis
on car navigation systems. Efforts will also be focused on newly emerging markets
mainly in China, where we will launch a joint venture with Shanghai Automotive Industry
Corporation (Group).
Overseas, Pioneer seeks to develop new car
entertainment by focusing on car AV products.
The relaunched Air Navi series features enhanced basic
functionality, in addition to offering communications
functions that realize telematics capabilities.