The JVCKENWOOD Group regards increasing the transparency and efficiency of decision-making in management by strengthening corporate governance and aiming to improve corporate value as one of the most important management issues. The “JVCKENWOOD Corporate Governance Policy” is basic policy on corporate governance touching upon the each of the principles of the Corporate Governance Code, and it serves as guidelines for implementing a sound and robust governance system throughout the Group.
The JVCKENWOOD Group is undertaking company-wide efforts to bolster corporate governance and continually generate profit in order to meet the expectations of our stakeholders and to achieve our Corporate Vision of “Creating excitement and peace of mind for the people of the world.”
The JVCKENWOOD Group had been developing its business activities in order to achieve profitable growth by establishing management principles on the basis of its five-year Vision 2020 Mid- to Long- Term Management Plan (hereinafter, “Vision 2020”) with a target year of FY2020. To measure the degree to which this has been attained, we will use not only indicators pertaining to business scale (sales, operating income) but also ROE* as an indicator that clarifies capital profitability. We have set a goal of 10% for FY2020, and we are striving to achieve that.
*ROE: Return on Equity (rate of return on equity = current net income/equity (average of term-start and term-end)
The progress made toward Vision 2020 was evaluated more than two years after it was drafted, based on Accounting Report for the Third Quarter of Fiscal Year Ending March 2018 (Japanese GAAP) (Consolidated) released in January 2018 and Notice Regarding Revisions of Forecasts for Earnings and Dividend of Surplus, after which efforts scheduled for future implementation were reviewed. The results for the full term ending March 2018 (FY2017) showed both consolidated operating income (hereinafter, “operating income”) and ROE below the Vision 2020 target figures. On the other hand, income has maintained a steady uptrend since the term ending March 2016 (FY2015), and further accelerating efforts should enable us to achieve an ROE of 10% in FY2020.
Current status toward targets under Vision 2020
*For details, please see Management Plan