Pioneer 2016 Annual Report Download - page 5

Consolidated Results
for Fiscal 2016
Net sales in fiscal 2016 declined 10.4%, to ¥449.6
billion, mainly due to the business transfers in fiscal
2015, and operating income declined 6.1%, to ¥7.3
billion, on factors including an increase in depreciation
and amortization. Net income attributable to owners
of Pioneer Corporation declined 95.0%, to ¥0.7 billion,
reflecting the absence of the gain from business
transfers recorded in fiscal 2015.
Formulation of Medium-Term
Plan Covering Five Years
Through Fiscal 2021
We have formulated a Medium-Term Plan covering
the periods from fiscal 2017 through fiscal 2021, which
lays out strategies to increase profit at the existing
consumer market and OEM businesses and initiatives
for the coming age of autonomous driving.
Amid great changes in the car electronics market,
we are pursuing a strategy that is suited to the prop-
erties of the Company’s two businesses; a consumer
market business that constantly offers new values to
the market; and an OEM business that grows together
with automakers by making proposals that meet their
expectations. We are also focusing on a map busi-
ness and an autonomous driving field as one of our
business pillars as we look ahead to the coming au-
tonomous driving society.
The consumer market business will work to
maintain high profitability through sustainable sales
growth and to establish early “connected car life” re-
lated business, by strengthening its smartphone-linked
product lineup, proposing new added value through
advanced driving assist systems, and offering new
forms of in-vehicle entertainment. In addition, we will
expand our commercial-use businesses that utilize the
cloud, and we will place a greater focus on products in
the affordable price range in emerging markets.
In the OEM business, we will focus on strength-
ening competitiveness via improving profitability in
existing businesses by promoting measures for ongoing
improvements to our profitability, which includes the
integrated development of car AV products and car
navigation systems, increasing productivity through
increased production scale at main plants and produc-
tion efficiency made possible by automating production,
and developing and designing products in anticipation
of customer needs to make development more effi-
cient. As ways to propose new value-added solutions,
we will accelerate R&D in the autonomous driving
field and proactively propose advanced technologies
based on customer needs ascertained from the con-
sumer market.
In the map business, we will expand business
in the ASEAN market and attack the non-navigation
corporate-use business market. We will also make
efforts to develop high-precision map data in the au-
tonomous driving field.
Furthermore, in the autonomous driving field, we
will strive to become an “essential company toward
the realization of autonomous driving” by making
use of our ability to develop both “3D-LiDAR” (Light
Detection and Ranging) driving space sensor and
high-precision map data, which are necessary for au-
tonomous driving, as well as by utilizing our alliances
to create and commercialize a “data ecosystem” for
advanced maps.
The initiatives we carry out in fiscal 2017, the first year
under the Medium-Term Plan, will be very important
for laying a foundation for the Plan. We will work to
steadily improve profitability at the OEM business
and support profits at the consumer market business
to lay a foundation for growth from fiscal 2018 onward.
For fiscal 2021, the Medium-Term Plan targets net sales
of ¥510 billion with operating income of ¥31 billion.
I ask for the continued understanding and strong
support of all of our stakeholders.
June 2016
Susumu Kotani
President and CEO
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Pioneer Corporation Annual Report 2016