Pioneer 2014 Annual Report Download - page 24

Year ended March 31, 2014,
compared with year ended March 31, 2013
Financial Position
Total assets as of March 31, 2014, were ¥327,913
million, an increase of ¥16,588 million from March
31, 2013, from increases in cash and deposits, trade
receivables, and intangible assets, which more than
offset decreases in inventories and property, plant
and equipment. Inventories decreased ¥6,095 million,
to ¥70,371 million, with reductions in inventory stock
more than offsetting the effect of the Japanese
yen’s depreciation. Property, plant and equipment
decreased ¥4,173 million, to ¥60,829 million, mainly
from restrained capital expenditures. On the other
hand, cash and deposits increased ¥13,338 million,
to ¥35,397 million, as a result of the capital increase
through third-party allotments implemented during
the first quarter of fiscal 2014. Trade receivables
increased ¥6,582 million, to ¥85,560 million, reflect-
ing the increase in net sales and the effect of the
Japanese yen’s depreciation. Intangible assets grew
¥3,347 million, to ¥40,057 million, as a result of new
purchases of software to be installed in products.
Total liabilities as of March 31, 2014, were
¥250,097 million, an increase of ¥20,348 million from
March 31, 2013. Although borrowings decreased
¥8,764 million and the provision for restructuring
costs decreased ¥6,211 million, changes in accounting
standards in Japan resulted in an increase of ¥21,432
million in liabilities related to retirement benefits
(accrued pension and severance costs in fiscal 2013),
and an increase in purchasing amounts led to a
¥12,884 million increase in trade payables.
Total equity as of March 31, 2014, was ¥77,816
million, marking a ¥3,760 million decrease from
March 31, 2013. The capital increase through third-
party allotments increased common stock and the
capital surplus by ¥4,475 million each, and the
Japanese yen’s depreciation resulted in a ¥6,572
million increase in foreign currency translation
adjustments, but changes in accounting standards
in Japan resulted in a decrease of ¥20,504 million in
cumulative adjustments to retirement benefits (pen-
sion adjustments recognized by foreign consolidated
subsidiaries in fiscal 2013).
Management’s Discussion and Analysis of Financial Position, Results of Operations and Cash Flows
Results of Operations
• Net sales
In fiscal 2014, consolidated net sales grew 10.2%
year on year, to ¥498,051 million. Although sales
of optical disc drive-related products declined, the
positive effect of the Japanese yen’s depreciation,
combined with increased sales of Car Electronics,
and of OEM products in particular, resulted in an
overall increase in net sales.
Car Electronics sales grew 11.4% year on year,
to ¥348,075 million. Sales of car navigation systems
rose on increased OEM sales, primarily in Japan and
Central and South America, and despite a decline
in consumer-market sales from weak sales in Japan
during the first half of the fiscal year. Sales of car
audio products increased, with growth in both OEM
sales, primarily in China and North America, and
in consumer-market sales, mainly in Europe, North
America, and Central and South America. OEM sales
accounted for 54% of total Car Electronics sales,
compared with 51% in the previous fiscal year. By
geographic region, sales in Japan grew 4.3%, to
¥151,248 million, and overseas sales rose 17.4%, to
¥196,827 million.
Home Electronics sales rose 12.6% year on year,
to ¥108,026 million. Although sales of optical disc
drive-related products declined, the positive effect
of the Japanese yen’s depreciation, combined with
increased sales of DJ equipment and equipment for
cable-TV systems, resulted in an overall increase.
By geographic region, sales in Japan grew 6.2%, to
¥32,396 million, and overseas sales rose 15.6%, to
¥75,630 million.
In the Others segment, sales declined 3.2% year
on year, to ¥41,950 million, on lower sales of factory
automation systems, and despite increased sales of
electronic devices and parts. By geographic region,
sales in Japan were roughly flat with the previous
fiscal year at ¥26,360 million, and overseas sales
declined 8.7%, to ¥15,590 million.
Financial Review
22 Pioneer Corporation
Annual Report 2014