Pioneer 2013 Annual Report Download - page 24

Year ended March 31, 2013,
compared with year ended March 31, 2012
Financial Position
Total assets as of March 31, 2013 were ¥311,325
million, a decrease of ¥10,687 million from March
31, 2012, mainly reflecting decreases in cash and
cash equivalents and in investment securities, which
more than offset increases in inventories and intan-
gible assets. Inventories increased ¥9,595 million, to
¥76,466 million, reflecting the effect of the Japanese
yen’s depreciation combined with a shortfall from plan
for sales. Intangible assets grew ¥7,855 million, to
¥36,710 million, mainly as a result of new purchases
of software to be installed in products. Cash and cash
equivalents decreased ¥24,986 million, to ¥20,967
million. Investment securities decreased ¥3,127 mil-
lion, to ¥6,491 million, on a decline in the market value
of equity holdings.
Total liabilities as of March 31, 2013, were
¥229,749 million, a decrease of ¥3,226 million from
March 31, 2012. Although borrowings grew ¥6,701
million and a ¥6,211 million provision for restructuring
costs was recorded, this was primarily because of a
¥14,503 million decrease in trade payables, reflecting
lower purchasing amounts in fiscal 2013.
Total equity as of March 31, 2013, was ¥81,576
million, marking a ¥7,461 million decrease from March
31, 2012. Although the Japanese yen’s depreciation
resulted in a ¥10,880 million increase in foreign cur-
rency translation adjustments, the recording of a
¥19,552 million net loss for fiscal 2013 resulted in
an overall decline.
Results of Operations
• Net sales
In fiscal 2013, consolidated net sales grew 3.5% year
on year, to ¥451,841 million. Although sales of optical
disc drive-related products and consumer-market car
navigation systems declined, increased OEM sales of
car navigation systems and consumer-market sales of
car audio products, coupled with the positive effect
of the Japanese yen's depreciation, resulted in an
overall increase in net sales.
Management’s Discussion and Analysis of Financial Position, Results of Operations, and Cash Flows
Car Electronics sales grew 15.4% year on year,
to ¥312,568 million. Sales of car navigation systems
rose on increased OEM sales in Japan and North
America, and despite a decline in consumer-market
sales, primarily in Japan, reflecting weak market
conditions. Sales of car audio products increased,
with higher consumer-market sales in each over-
seas region and growth in OEM sales mainly in North
America, more than offsetting a decline in OEM sales
in Japan. OEM sales accounted for 51% of total Car
Electronics sales, compared with 43% in the previous
fiscal year. By geographic region, sales in Japan grew
6.3%, to ¥144,978 million, and overseas sales rose
24.7%, to ¥167,590 million.
Home Electronics sales declined 22.0% year on
year, to ¥95,925 million. Although sales of DJ equip-
ment rose, sales of optical disc drive-related products
declined substantially, primarily for AV use, reflect-
ing a weak Japanese market. By geographic region,
sales in Japan declined 47.5%, to ¥30,501 million,
and overseas sales were roughly flat with the previous
fiscal year, at ¥65,424 million.
In the Others segment, sales rose 1.0% year on
year, to ¥43,348 million, from the commencement
of subcontracted electronic manufacturing services
(EMS) at our joint venture in Brazil during fiscal 2013
and increased sales of factory automation systems,
and despite lower sales of electronic devices and
parts, and telephones, as well as a decline in royalty
revenue from patents related to optical disc technolo-
gies. By geographic region, sales in Japan declined
4.1%, to ¥26,264 million, while overseas sales grew
10.0%, to ¥17,084 million.
• Operating income
Cost of sales increased to ¥359,847 million from
¥343,244 million a year earlier. Cost of sales
accounted for 79.6% of net sales, worsening by 1.0
percentage point from 78.6% in fiscal 2012. The
worsened cost of sales ratio was mainly caused by
a worsened cost of sales ratio in Car Electronics.
Selling, general and administrative (SG&A) expenses
increased to ¥85,997 million from ¥80,995 million in
fiscal 2012, mainly reflecting an increase in patent
Financial Review
Pioneer Corporation Annual Report 2013
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