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To Our Stakeholders
Looking back on fiscal 2014, ended March 31, 2014, we were able to return to profitability
on a net income basis as a result of Group-wide restructuring efforts and increased sales.
We will continue to engage in a variety of measures to increase sales and profit, focusing
on Car Electronics, and further strengthen our management base and enhance our earnings
strength in fiscal 2015.
Consolidated Results for Fiscal 2014
Consolidated net sales in fiscal 2014 rose 10.2% year
on year, to ¥498.1 billion. Despite a decline in sales
of optical disc drive-related products, the positive
effect of the Japanese yen’s depreciation combined
with increased sales of Car Electronics, primarily in
our OEM business, resulted in overall sales growth.
Operating income grew 86.2%, to ¥11.2 billion, with
the effects of restructuring and increased sales more
than offsetting the negative impact of an increase in
selling, general and administrative (SG&A) expenses
and a deterioration in the cost of sales ratio from
the Japanese yen’s depreciation. Net income turned
around to a ¥0.5 billion profit.
Strengthening the Management Base
and Proposing New Value
For fiscal 2015, we will strengthen our management
base and propose new value.
In Car Electronics, we will expand the scope
of application for modular design, a design method
that uses modules of standardized and common
parts to significantly reduce design and manufac-
turing man-hours. In addition to reducing costs, this
will shorten development times, making it possible
to increase sales by quickly responding to diverse
customer needs.
We will also build on our proposal for new value
known as “Hardware & Software and Information
Services.” Specifically, this will mean strengthen-
ing our joint development with Mitsubishi Electric
Corporation of next-generation automotive equipment
based on further advances in car navigation. We will
also create new car life by developing cloud-based
information services using the DOCOMO DriveNet
InfoTM service jointly developed with NTT DOCOMO,
INC., and strengthening our products’ smartphone
linkage, including being the first in the industry to
make our consumer-market car electronics products
compatible with the Apple CarPlay®. Going forward, we
will continue to work together with strategic partners
with the aim of realizing proposals for new value.
04 Pioneer Corporation
Annual Report 2014