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To Our Stakeholders
Looking back on fiscal 2012, just as we had set a course for growth, we were met with two major
natural disasters in the Great East Japan Earthquake and the fl ooding in Thailand, resulting in a year of
challenges. With concerns of a global economic slowdown triggered by the fi nancial crisis in Europe,
there is no denying that the diffi cult operating environment will continue in fi scal 2013. Nevertheless, I
believe this is the time for Pioneer to show its true value, and all of our management and employees are
striving to implement our business plan and solidify our growth track.
Second consecutive year of profitability despite
natural disasters
Despite the effects of the Great East Japan
Earthquake and the flooding in Thailand, Pioneer
achieved a second consecutive year of profitability
in fiscal 2012, with net sales of ¥436.8 billion,
operating income of ¥12.5 billion, and net income of
¥3.7 billion.
In addition to a recovery from the decline in net
sales caused by the earthquake and floods, we are
forecasting improved earnings in fiscal 2013 from
sales growth by solidifying our relationships with key
clients and alliance partners.
Embarking on a new strategy for production
sites for both risk management and low-cost
operations
In the aftermath of the flooding in Thailand in fiscal
2012, we have been reviewing our production
structure, which is concentrated in Thailand. We are
rebuilding our global production strategy to achieve
both risk management and low-cost operations,
taking into account anticipated future developments
in parts procurement, wages, and markets.
Our plants in Thailand will retain roughly 60%
of their pre-flood production levels, and for the
time being we plan to cover the remaining 40% in
Malaysia, satellite plants in Thailand, and in China.
From the second half of fiscal 2013, we also plan
to commence production at new sites including the
use of such initiatives as electronic manufacturing
services (EMS) to further reduce costs. The
candidate countries being considered for the new
production sites are Indonesia, Myanmar, and India.
Working aggressively to develop new
businesses and expand businesses in emerging
markets
n New business development
In the Car Electronics business, there has been
much attention on Pioneer’s “augmented reality (AR)
head-up display (HUD) unit,” which combines AR
Consolidated Results for Fiscal 2012
Rebuilding Our Global Production Strategy
Initiatives in Pursuit of Growth
02 Pioneer Corporation Annual Report 2012