JVCKENWOOD Corporation (JVCKENWOOD) hereby announces that it has reached an agreement with Kawashima Co., Ltd. (“Kawashima”) regarding the transfer of the assets and goodwill of JVCKENWOOD Interior Furniture Corporation (“JKI”), which is JVCKENWOOD’s consolidated subsidiary engaged in manufacturing and sales of home furniture and unit furniture, and completed the transfer today.

1．Reasons for Transfer of Assets and Goodwill

JKI has deployed product lines that include high value-added home furniture and unit furniture such as desks and AV cabinets, with the concepts of “people-friendly” and “environment-friendly.” However, JKI’s business environment has undergone drastic changes, such as increasing competition and price reductions in the domestic furniture market.

In order for JKI to cope with such environmental changes and seek future growth, JVCKENWOOD has determined that it would be advisable for JKI to do operation under a business group, which is well established in Shizuoka, where JKI’s Head Office and factory are located. Therefore, JVCKENWOOD decided to transfer JKI’s assets and goodwill to Valvanne Co., Ltd., a Kawashima Group company.

JKI’s interior business will be discontinued upon completion of the transfer of assets and goodwill.

2. Overview of JVCKENWOOD Interior Furniture Corporation

• Name: JVCKENWOOD Interior Furniture Corporation
• Location: 1800-1 Hamano Nakashinden, Fukuroi City, Shizuoka
• Position and name of representative: Kiyoharu Inooka, President and Representative Director
• Description of business: Manufacturing and sales of home furniture and unit furniture
• Capital: ¥10 million
• Date of foundation: June 1, 1984
• Main shareholder: JVCKENWOOD Corporation

3. Overview of Valvanne Co., Ltd.

• Name: Valvanne Co., Ltd.
• Location: 1800-1 Hamano Nakashinden, Fukuroi City, Shizuoka
• Position and name of representative: Toshiya Hayashi, Representative Director
• Description of business: Manufacturing and sales of wood work and furniture
• Capital: ¥45 million
• Date of foundation: April 5, 2017
• Main shareholder: Kawashima Co., Ltd., Toshiya Hayashi

4．Future Prospects

This transfer of assets and goodwill will have no impact on JVCKENWOOD’s consolidated operating results for the fiscal year ending March 31, 2018. The Company will promptly announce matters requiring disclosure should any arise as a result of a change in the impact of the transfer on consolidated operating results.