Pioneer 2015 Annual Report Download

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Annual Report 2015
For the Year Ended March 31, 2015

Table of contents

  • Page 1
    Annual Report 2015 For the Year Ended March 31, 2015

  • Page 2
    ...Report 2015 Contents 02 04 10 To Our Stakeholders Special Feature: Business Strategies Review of Operations 12 14 16 Research and Development Corporate Governance Corporate Citizenship and Environmental Preservation Activities 17 18 59 Management Financial Section General Information on Shares P io...

  • Page 3
    ...-market car navigation systems for the Japanese market to Japan from the second half of fiscal 2016. Fiscal 2015, ended March 31, 2015, was a year of major decisions for Pioneer-the decisions to concentrate management resources in the Car Electronics business that continues to grow around the world...

  • Page 4
    ... the business portfolio Growth markets New areas OLED lighting Medical and health care Car electronics Car AV terminals Car speakers Cloud services Experiencing comfort, excitement, safety and reliability in vehicles Growth potential Quickly commercialize Car electronics Car navigation systems...

  • Page 5
    ...Information services Group company's map data Established joint venture with MappointAsia Create detailed map data Business alliance with NTT GEOSPACE CORPORATION Hardware To further strengthen our position as a leading company for car AV products, we are quickly addressing changes in the market...

  • Page 6
    ...-market car navigation systems and cloud services, with driver assistance systems developed in-house. The number of fleet vehicles in Japan is estimated to be approximately 17 million vehicles, and approximately 80% of these vehicles are not equipped with commercial-use car navigation systems...

  • Page 7
    ...the cost of sales ratio, lower sales, and despite reductions in SG&A expenses. Europe Main Products Audio Systems Audio Components DJ Equipment Equipment for Cable-T V Systems Blue-ray Disc Players Blue-ray Disc Drives DVD Players DVD Drives AV Accessories Telephones 2015 North America 0 2013 2014...

  • Page 8
    ... map data Road outline map is created Latitude and longitude LiDAR Systems*2 and High-Precision Location Technologies for the Age of Automated Driving Pioneer has been offering new value for the creation of rich car lifestyles, focusing on car AV products and car navigation systems. Recent years...

  • Page 9
    ... Corporate Auditors held 16 meetings. management strategies, as well as medium- and long-term policies, and approves these issues, or, in cases where the Board of Directors has decisionmaking authority, the Group Executive Committee reports on these issues to the Board of Directors. In fiscal 2015...

  • Page 10
    ... Preservation Activities Management (As of June 25, 2015) Board of Directors Based on our Group Philosophy of "Move the Heart and Touch the Soul," Pioneer aims to meet the social needs of a diverse range of stakeholders through sound corporate activities, to continue to be a company that...

  • Page 11
    ... total equity per share are calculated by using the number of issued shares after deducting treasury stock. 4. The amount of borrowings excludes capital lease obligations. 5. Cash and cash equivalents at end of year exclude time deposits which become due over three months of the date of acquisition...

  • Page 12
    ... tax increase in April 2014, which resulted in an overall decline. OEM sales declined in Japan, but grew mainly in China and North America, which resulted in an overall increase. Sales of car audio products increased. Consumermarket sales were flat year on year, with a decline in Europe and Japan...

  • Page 13
    ...,558 Capital surplus Retained earnings Treasury stock-at cost, 5,028,727 shares in 2015 and 5,026,895 shares in 2014 Accumulated other comprehensive income (loss): Unrealized (loss) gain on available-for-sale securities Foreign currency translation adjustments Defined retirement benefit plans (Note...

  • Page 14
    ... Other Retirement Comprehensive Translation Consolidated Adjustments Subsidiaries Benefit Plans Loss Common Stock Capital Surplus Retained Earnings Treasury Stock Minority Interests Total Equity Consolidated Statement of Comprehensive Income Pioneer Corporation and Its Subsidiaries Year ended...

  • Page 15
    ..., the Group markets certain products, such as car electronics products to other companies. On March 2, 2015, the Group transferred its home AV, telephones, headphone-related and DJ equipment businesses. Details are described in Note 21. Business Combination. Income before income taxes and minority...

  • Page 16
    ... pension plans. With respect to the defined benefit pension plan, the Group accounts for the "Accrued pension and severance costs" based on projected benefit obligations and plan assets at the consolidated balance sheet date. The projected benefit obligations are attributed to periods on a benefit...

  • Page 17
    ... 1, 2014, increased by ¥796 million ($6,633 thousand). The effect of this accounting change on net income, net assets per share and net income per share as of and for the year ended March 31, 2015 was immaterial. m. Asset Retirement Obligations In March 2008, the ASBJ published ASBJ Statement No...

  • Page 18
    ...," "acquisition-related costs" and "presentation changes in the consolidated financial statements" are effective for the beginning of annual periods beginning on or after April 1, 2015. Earlier application is permitted from the beginning of annual periods beginning on or after April 1, 2014, except...

  • Page 19
    .... As for the group of assets to be disposed of, the projected selling price was used as the basis of recoverable values for machinery and equipment, etc., and the value in use of zero as the basis of values for software. Notes: 1. Carrying amount reported in the consolidated balance sheet is net of...

  • Page 20
    ...ned benefit pension plans (1) The changes in projected benefit obligation for the years ended March 31, 2015 and 2014, were as follows: Millions of Yen Thousands of U.S. Dollars 2015 Balance at beginning of year (as previously reported) Cumulative effect of changes in accounting policies ¥85,628...

  • Page 21
    ... 31, 2013 as the base date is mainly used for measuring the projected benefit obligation. Defined contribution pension plan (5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans for the years ended March 31, 2015 and 2014...

  • Page 22
    ... 2015 and 2014, were as follows: Millions of Yen Thousands of U.S. Dollars 2015 Deferred tax assets: Write-down of inventories Accrued expenses Excess depreciation Loss on impairment of property, plant and equipment Loss on impairment of investment securities Accrued pension and severance costs Tax...

  • Page 23
    ... currency exchange rates, the position, net of payables in foreign currencies, is hedged by using forward foreign currency contracts. Investment securities, mainly equity instruments in the companies with which the Company has business and capital alliances, are exposed to the risk of market price...

  • Page 24
    ... market price of the stock exchange for the equity instruments. Fair value information for the investment securities by classification is included in Note 3. Trade payables, short-term borrowings and income tax payable The carrying values of trade payables, short-term borrowings and income tax...

  • Page 25
    ... Group have been made in accordance with internal policies which regulate the authorization and credit limit amount. 2015 Investment in equity instruments that do not have a quoted market price in an active market: Unlisted securities Unlisted associated securities Total ¥2,373 2,094 ¥4,467 2014...

  • Page 26
    ...for the DJ equipment business of the Group other than the Company, to the newly established companies by the Company, Pioneer DJ Corporation (the "Successor Company"), and Pioneer DJ Europe Limited and Pioneer DJ Americas, Inc. (the "Sales Subsidiaries") as of the effective date of March 2, 2015 and...

  • Page 27
    ...Dollars (2) Book value of assets and liabilities pertaining to the transferred business Millions of Yen Thousands of U.S. Dollars Net sales Operating income Company split, transfer of shares and business transfer relating to home AV business The Company resolved, at the board of directors' meeting...

  • Page 28
    ...of business segment review. Information about sales, profit (loss), assets and other items for the year ended March 31, 2014 have been restated under the new classification. On March 2, 2015, the Group transferred its home AV, telephones, headphone-related and DJ equipment businesses. (2) Methods of...

  • Page 29
    ... increase in property, plant and equipment and intangible assets are capital investments principally in software. 4. Adjustments are made to reconcile segment income (loss) to operating income presented in the accompanying consolidated statement of income. Thousands of U.S. Dollars 2015 Reportable...

  • Page 30
    (4) Information about geographical areas (I) Sales Millions of Yen Thousands of U.S. Dollars (6) Impairment losses of assets by reportable segment Millions of Yen 2015 Reportable Segment Car Electronics Home Electronics Corporate Others Total Consolidated 2015 Japan North America Europe ¥57,454 ...

  • Page 31
    ... Japan Trustee Services Bank, Ltd. (Trust Account) Chase Manhattan Bank GTS Clients Account Escrow JPMCB NA ITS London Clients AC Morgan Stanley and Co International Limited The Bank of Tokyo-Mitsubishi UFJ, Ltd. Juniper Pioneer Employee Share Ownership Plan Japan Securities Finance Co., Ltd. Number...

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