Management MessageIR Information

Management Message

Offering Cutting-edge Solutions

Fusing together the technologies and experiences we have accumulated over the years, and using our deep insight into our customers’ problems, JVCKENWOOD will continue to partner with our customers to offer cutting-edge solutions.

◆ Overview of FY2016

Despite a sense of uncertainty in some sectors, the global economy showed signs of a moderate recovery in FY2016. In the domestic economy, there was an improvement in business sentiment, and the tone of moderate expansion continued.

Under these circumstances, increased sales in the dealer-installed options business in the Automotive sector and revenue increases in the entertainment business in the Media Service sector contributed to an increase in net sales for the JVCKENWOOD Group. In terms of group-wide income/loss, although operating and ordinary income were up as a result of these revenue increases, due to the posting of extraordinary losses, the ultimate result attributable to owners of the parent company was a net loss.

With the desire to provide a stable return to our shareholders firmly in mind, and considering our earning capacity and financial situation from comprehensive perspectives, we have decided on a year-end dividend of 5 yen per share. This is the third consecutive year that we have been able to issue a dividend to our shareholders.

◆ JK3.0 and Anniversary Commemorations

The JVCKENWOOD Group views the era in which the separate companies of Victor Company of Japan (JVC) and Kenwood Corporation enjoyed the patronage of customers with their respective brands as Stage 1, and, taking the J from JVC and the K from Kenwood, has defined that era as “JK1.0” The years from 2008, when JVC and Kenwood merged amidst the turbulent market environment of advances in digitalization, were defined as stage 2, or “JK2.0” The end of June 2016, when a new management structure was established, marked the beginning of “JK3.0” The full-scale activities that we have launched under JK3.0 are designed to achieve growth through the creation of value for our customers.

In October last year, we marked five years since the merger in 2011, and it was the 70th anniversary of Kenwood’s foundation in December. In September this year, we will mark another milestone, the 90th anniversary of JVC.

To mark these milestone events of the launch of JK3.0 and the anniversary commemorations, and to achieve further growth and development through the creation of innovation, we have decided to redefine and revive the Victor brand, adding it to the JVC and KENWOOD brands that we are deploying globally. The Victor brand will be limited to creative products that do not fit into either the JVC or the Kenwood brand. We will revive the “pride and spirit of exploration” that has always been part of the JVC DNA, and deploy it anew as a brand that will “create an era.”

The first product to be marketed under the new Victor brand will be WiZMUSIC, an acoustic characteristics customer service that uses our proprietary EXOFIELD out-of-head localization sound field processing technology. This unprecedented and innovative service will also serve as a commemorative product for JVC’s 90th anniversary.

In this way, we will continue to come up with cutting-edge solutions that wow everyone who encounters them, and realize our corporate vision of “creating excitement and peace of mind for the people of the world.”

◆ Towards the Realization of Vision 2020

Under the new management structure approved at the 9th Ordinary General Meeting of Shareholders, the entire JVCKENWOOD Group is managed in a matrix of five regions backed by three business segments. The clarification of responsibilities and a significant delegation of authority will result in the speedy management of the Group’s businesses.

To realize “Vision 2020,” with its goal of the Company’s evolution into a Customer Value Creator, under this new management structure, we will continue to strive for the expansion of our existing businesses. At the same time, we will take the superior technologies and know-how that the Group has accumulated over many years in the areas of images, sound, and communication systems and apply them to business segments that have great potential and social significance, such as in-car systems and healthcare. We will pre-empt our customers’ problems and continue to partner with our customers to provide cutting-edge solutions. In this way, we will make daring strides towards a new strategy for growth and aim to take a dramatic leap into the future.

In JK3.0, all of our executives and employees alike, while fulfilling their own respective roles, are in the process of reforming the JVCKENWOOD Group into a company where they are excited to work and can experience first-hand the “joy of working.”

◆ Earning Social Trust

We believe that a company seeking to achieve sustainable growth must first meet the expectations of its stakeholders and then, through unflagging efforts, earn the trust of society.

The JVCKENWOOD Group endeavors to be a company that can earn the trust of its many stakeholder groups – including consumers and corporate clients. We will achieve this goal by working as a single, unified team and leveraging our strengths to improve the quality of all corporate activities, products and services; raise our competitiveness; and contribute to society.
Simultaneous with these efforts, we will demonstrate our commitment to future generations by enhancing our community-based social contribution and environmental conservation activities.

Thank you for your continued understanding and support.

June 2017

Takao Tsuji
President and CEO
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