Expansion of sales of the Car Electronics Business and development of sales of new businesses and contribution to profits thereby are projected.
Moreover, as cost synergies, increased profits are projected as a result of reduction of development costs through joint development, procurement costs reduction through joint procurement of parts, reduction of subcontract processing and logistics costs through mutual subcontracting, optimization of manufacturing places, and sharing of infrastructure, and reduction of patent-related fees through mutual use of intellectual property, rights, etc.
Cash flow will be improved at each operating company by expanding economies of scale through common businesses and utilizing mutual consignment of production to reduce outsourced manufacturing.
As for balance sheet status, both companies will work to reduce net debt by utilizing the effect of improved cash flow. Both companies will also strive to reduce inventories and accounts receivable by promoting group wide production innovation and marketing reforms.