Pioneer 2010 Annual Report Download - page 24

Significant Accounting Policies
Effective from fiscal 2009, the year ended March 31, 2009,
Pioneer has changed its basis for preparing consolidated
financial statements from accounting principles generally
accepted in the United States of America (“U.S. GAAP”) to
accounting principles generally accepted in Japan (“Japanese
GAAP”). Accordingly, Pioneer’s consolidated financial state-
ments for the year ended March 31, 2008 have been
restated based on Japanese GAAP. For the years ended
March 31, 2007 or prior, however, no consolidated financial
statements in accordance with Japanese GAAP are available.
The U.S. GAAP consolidated financial statements previously
reported by Pioneer for the years ended March 31, 2007 or
prior thereto have not been prepared on a basis comparable
to the consolidated financial statements currently prepared
by Pioneer in accordance with Japanese GAAP, and should
not be so compared.
Financial Position
Total assets as of March 31, 2010 were ¥389,719 million, a
decrease of ¥39,374 million from March 31, 2009, reflecting
decreases in inventories as well as in property, plant and
equipment and software. Inventories declined ¥29,836
million from March 31, 2009 to ¥55,050 million as of March
31, 2010, reflecting reduced inventories in plasma displays,
from which business we withdrew, as well as in car electron-
ics. Property, plant and equipment decreased ¥22,103 million
from March 31, 2009 to ¥90,064 million as of March 31,
2010, as we curtailed acquisitions of property, plant and
equipment. Software was ¥28,357 million as of March 31,
2010, a decrease of ¥10,858 million from March 31, 2009,
mainly due to curbs on new software development.
Total liabilities as of March 31, 2010 were ¥299,065 million,
a decrease of ¥18,180 million from March 31, 2009. This
mainly reflected a decrease of ¥15,240 million in the total of
short-term borrowings and long-term debt including current
portion, as well as a decrease of ¥10,950 million in accrued
expenses mainly due to special retirement benefits paid.
These decreases were partly offset by an increase of ¥16,896
million in trade payables reflecting increased production.
Total equity as of March 31, 2010 was ¥90,654 million, a
decrease of ¥21,194 million from March 31, 2009. This
chiefly reflected a net loss of ¥58,276 million, despite a
combined increase of ¥34,866 million in common stock and
capital surplus as a result of the issuance of new shares
through an international offering and third-party allotments.
Results of Operations
Net sales
In fiscal 2010, consolidated net sales decreased 21.4% year
on year to ¥438,998 million. This was mainly the result of
decreased sales of plasma displays, from which business
Pioneer withdrew in fiscal 2010, and lower sales of car
electronics products and DVD drives, as well as the impact of
the Japanese yen’s appreciation. This was despite increased
sales of Blu-ray Disc-related products.
Car Electronics sales decreased 14.5% year on year to
¥249,331 million because of lower sales of both car navigation
systems and car audio products. In car navigation systems,
overall sales declined due to decreased consumer-market
sales in Japan, Europe and North America, and reduced OEM
sales mainly in Japan and North America. In car audio prod-
ucts, consumer-market sales decreased mainly because of
lower overseas sales. Meanwhile, OEM sales rose due to
higher sales in Japan and China. Total OEM sales in this
business segment accounted for approximately 44% of Car
Electronics sales, compared with approximately 41% in fiscal
2009. In terms of geographic sales, sales in Japan decreased
8.5% to ¥104,350 million, while overseas sales decreased
18.4% to ¥144,981 million.
Home Electronics sales decreased 36.3% year on year to
¥133,329 million, mainly due to lower sales of plasma displays
and DVD drives, despite higher sales of Blu-ray Disc-related
products as an optical disc joint venture commenced opera-
tions. In terms of geographic sales, sales in Japan increased
29.3% to ¥40,096 million, while overseas sales declined
47.7% to ¥93,233 million.
Management’s Discussion and Analysis of Financial Position,
Results of Operations and Cash Flows
Financial Review
Year ended March 31, 2010,
compared with year ended March 31, 2009
22
PIONEER CORPORATION Annual Report 2010