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Car Electronics: Numerical Targets
Notes: 1. Operating income represents operating income before elimination of intersegment transactions.
2. From scal 2017, map software, previously classied in “Others,” is reclassied in “Car Electronics.” Figures for scal 2016
have been reclassied in accordance with those for scal 2017 and beyond.
Map Business
Consumer Market
Business
OEM Business
Fiscal 2016
Results
357.8
Net Sales
335.0 340.0 355.0
410.0
Fiscal 2017
Forecasts
Fiscal 2018
Plan
Fiscal 2019
Plan
Fiscal 2021
Plan
(Billion yen)
Strengthening of cost control structure
・Establish production structure that will be less impacted by foreign exchange rates fluctuations
・Generate profits via utilizing high productivity at main plants
・Effectively place design resources that make use of external business partners
2016-2017: Advanced investment stage
Advanced investment for large-scale OEM
orders and investments to improve profitability
➡ Consumer market business to
be still a prot pillar
2018-2021: Investment recoupment stage
Large-scale OEM orders to bear fruit and effects of profitability
improvement measures in OEM to ensure stable profit
➡ Both consumer market and
OEM businesses to generate prot
8.6 8.0
13.0
17.0
25.0
Operating Income
We designate fiscal 2016 to fiscal 2017 as a stage
for advanced investment, and the periods from fiscal
2018 onward as a stage for recouping the invest-
ments. The numerical targets for the Car Electronics
business are net sales of ¥410 billion, operating in-
come of ¥25 billion, and an operating income margin
of 6% and more for our overall business in fiscal 2021.
The plan calls for the consumer market busi-
ness to be the source of profit during the advanced
investment stage, as the OEM business invests
in advance to build the full-scale capability for
large-scale orders from fiscal 2018, and to improve
profitability. During the investment recoupment
stage, with a full flow of large-scale OEM orders and
effects of the measures for improving profitability,
earnings at the OEM business will improve and both
the consumer market and OEM businesses will gen-
erate profit.
05
Pioneer Corporation Annual Report 2016