Pioneer 2010 Annual Report Download - page 5

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As I have described, our business results are improving,
but we still booked a net loss for the fiscal year. Pioneer
deeply regrets that it has decided to pay no dividend for
fiscal 2010.
Implementation of Restructuring
In fiscal 2010, Pioneer executed restructuring measures
centered on business portfolio realignment and cost reduc-
tions, in order to shift to a lean operating structure. At the
same time, we worked to strengthen our financial position
and promote strategic business alliances. Through these
measures, we delivered results that were better than ini-
tially planned.
In the Home Electronics business, Pioneer fully withdrew
from the plasma display business, which continuously incurred
losses. In the optical disc business, which became unprofitable
due to intensified price competition for DVD-related products,
Pioneer restored profitability in the second half of fiscal 2010
on the back of volume-driven growth centered on Blu-ray Disc-
related products through a joint venture with Sharp Corpora-
tion. In the Car Electronics business, Pioneer will launch
price-competitive products aiming at the largest volume zone
in the market through a fundamental review of the cost struc-
ture for its products. Another priority is to strengthen ties with
our major customers in the OEM business.
Additionally, in March 2010, Pioneer raised a total of
¥34.9 billion through an international offering and third-party
allotments to finance future growth strategies. Pioneer
plans to use its own internal funds for the redemption of
¥60 billion in the aggregate principal amount of its convert-
ible bonds due in March 2011, by generating cash primarily
through the sale of the land and buildings of the Company’s
former Head Office and the sale of investment securities.
Furthermore, in March 2010, Pioneer signed a new loan
agreement (by method of syndication) with multiple finan-
cial institutions for a total loan amount of ¥89.4 billion.
Stable financial assistance from lender financial institutions
has also been confirmed. Consequently, Pioneer’s financial
position has substantially improved.
Looking ahead, Pioneer will continue to improve the
profitability of its existing businesses through these restruc-
turing measures. In addition, as detailed in the next few
pages of this report, the entire Company will work as one to
promote its medium-term plan, including forward-looking
growth strategies, in anticipation of the period after Pioneer’s
full turnaround. Your continued support and understanding
will remain vital to this endeavor.
June 25, 2010
Susumu Kotani
President and Representative Director
Operating Income (Loss) Structure Breakdown
2009
Operating loss
2010
Operating loss
Lower profit due to
decreased net sales
Decreased
SG&A expenses
Improvement in
gross profit margin
–54.5
–17.3
+9.3
–17.5
+45.1
Improvement of
37.0 billion yen
(Billions of yen)
PIONEER CORPORATION Annual Report 2010
03