Pioneer 2013 Annual Report Download - page 6

To Our Stakeholders
Looking back on fiscal 2013, we were faced with drastic changes in our operating environment, espe-
cially in our core business of Car Electronics, where product prices declined in line with a shift toward smaller,
lower-priced automobiles. This business also saw a change in the product mix, a shift from developed markets to
emerging markets, and a contraction in the Japanese consumer market as a result of the growth of the OEM market.
Against this backdrop, everyone at Pioneer has been working together to bring about a recovery in our
profitability.
In fiscal 2013, consolidated net sales grew 3.5%
year on year, to ¥451.8 billion. 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 deprecia-
tion, resulted in an overall increase. Nevertheless,
operating income declined 52.1% year on year, to
¥6.0 billion, from an increase in selling, general and
administrative (SG&A) expenses and a lower gross
profit margin, reflecting the negative effect of foreign
exchange rate movements, and despite an increase
in net sales. As a result, a net loss of ¥19.6 billion was
recorded, compared with the previous fiscal year’s
¥3.7 billion net income, reflecting the decline in
operating income, combined with restructuring costs
and impairment of investment securities recorded
as extraordinary losses, and a reversal of deferred
tax assets.
To address the decline in profitability caused by
drastic changes in our operating environment during
fiscal 2013, we have formulated and are executing
a medium-term plan for the period to fiscal 2015 to
return to a path of growth.
n Restructuring to reduce costs
In the Car Electronics business, we will improve
development and production efficiency with the full-
scale introduction of modular design*, while at the
same time reducing costs by realigning and stream-
lining our production sites in Japan and overseas.
In the Home Electronics business, in addition to
realigning and establishing the home AV business
as a separate entity, we will further streamline the
optical disc business, with the aim of creating a
structure that generates stable profits.
With regard to the sales structure, we will
streamline our structure in developed markets and
shift management resources to emerging markets.
Also, in addition to personnel adjustments in Japan,
Consolidated Results for Fiscal 2013 Medium-term Plan Formulated Based on
Restructuring and Growth Strategies
Pioneer Corporation Annual Report 2013
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