Pioneer 2012 Annual Report Download - page 14

Review of Operations (Fiscal 2012, ended March 31, 2012)
Car Electronics sales grew 6.6% year on year, to
¥270.8 billion, on strength in car navigation systems
in Japan, while sales were negatively affected by
the Great East Japan Earthquake, the flooding in
Thailand, and the Japanese yen’s appreciation. The
growth in sales of car navigation systems included
increases in consumer-market sales from strength in
the Japanese market, supported partly by the roll-
out of new products, and increases in OEM sales
on solid sales to automobile manufacturers and
for dealer options in Japan. In car audio products,
on the other hand, consumer-market sales rose
in Europe but recorded an overall decline, mainly
from lower sales in North America and in Central
and South America, reflecting insufficient product
supply from decreased production as a result of the
flooding in Thailand, combined with the Japanese
yen’s appreciation. OEM sales declined as well,
in part from a large decline in orders following the
Great East Japan Earthquake and the flooding in
Thailand. In total, OEM sales accounted for 43% of
Car Electronics sales, the same percentage as in the
previous fiscal year.
By geographic region, sales in Japan grew 26.7%,
to ¥136.4 billion, while overseas sales declined 8.2%,
to ¥134.3 billion.
Operating income in this segment declined
26.7%, to ¥10.3 billion, reflecting a lower gross profit
margin from the impact of the Great East Japan
Earthquake and the flooding in Thailand, combined
with an increase in SG&A expenses, despite an
increase in gross profit on higher sales.
Home Electronics sales declined 21.9% year on year,
to ¥123.1 billion. Despite solid sales of AV systems
and AV receivers primarily in Europe, a large decline
in sales of optical disc drive-related products due to
the absence of the special demand associated with
the shift to digital terrestrial broadcasting in Japan in
July 2011 and a decline in disc drives for PCs led to
a large overall decline.
By geographic region, sales in Japan declined
30.2%, to ¥58.1 billion, and overseas sales were
down 12.7%, to ¥64.9 billion.
Operating income in this segment rose 40.0%,
to ¥3.6 billion, on lower SG&A expenses and an
improvement in the gross profit margin, despite the
decline in sales.
Main Products
n Audio Systems n Audio Components n DJ Equipment
n Equipment for Cable-TV Systems n Blu-ray Disc Players
n Blu-ray Disc Drives n DVD Players n DVD Drives
n AV Accessories
200
100
041.6
83.2 58.1
94.0
74.3
64.9
135.6
157.6
123.1
Net Sales (Billion yen) Overseas
Japan
2010 2011 2012
10
0
-10
2.5 3.6
2010 2011 2012
-9.2
Operating Income (Loss) (Billion yen)
Main Products
n Car Navigation Systems n Car Stereos
n Car AV Systems n Car Speakers
300
200
100
0
Net Sales (Billion yen)
104.4
145.0
249.3
107.7
146.4
254.1
134.3
270.8
136.4
2010 2011 2012
Overseas
Japan
20
10
0
-10 -7.3
14.0
10.3
2010 2011 2012
Operating Income (Loss) (Billion yen)
Car Electronics
Home Electronics
Car navigation system
AV system
12 Pioneer Corporation Annual Report 2012