COO Message

Updated on 10 November, 2026

Pursuing VISION 2030 with high aspirations and renewed determination. Clear strategic business policies and strengthened frontline capabilities to implement them are the key to success.

My Mission as COO

Under our new medium-term management plan, VISION 2030, we have committed to achieving revenue of ¥410 billion or more, a core operating income ratio of 9% or higher, and a sales ratio in the Safety & Security Sector of 35% or higher by fiscal 2030. The plan also clearly outlines our aspirational targets of ¥500 billion or more in revenue, a core operating income ratio of 10% or higher, and a sales ratio in the Safety & Security Sector of 50% or higher. My most important mission as COO is to take the lead in fulfilling my executive responsibilities to achieve these aspirational targets and enhance corporate value. During the three years of the previous medium-term management plan, VISION 2025, we reinforced profitability by revising our business portfolio and aggregating resources in growth areas. However, these results were partly driven by a few growth businesses and the fact that the Group had not yet reached the stage where its overall execution capabilities and balanced growth potential could be called fully established.

Under VISION 2030, rather than simply continuing the strategies we have pursued to date, each business unit is tasked with strengthening its frontline capabilities in order to achieve tangible results. Accordingly, our management reforms (THESEUS activities^*1) are effective for this purpose, and the Company will transform itself into a self-driven organization capable of achieving its targets independently.

*1 The name of the management reform project that the Communications Systems Division has been engaging in since 2018

Direction of Business Strategies and Key Areas

The basic policy of our business strategies is to ensure that the Communications Systems Business, a growth-driving business, develops into a stable business, while improving profitability across all business units and enhancing their earning power. Meanwhile, while VISION 2030 has only just begun, we are aware of various risks in the external environment of the Communications Systems Business. With this in mind, we will launch a growth strategy project, form a task force for each key measure, and strongly drive the delivery of results.

Basic policy: Enhance Groupwide earning power, centered on the Communications Systems Business

Safety & Security Sector	Accelerate the further expansion of our solutions-oriented business, leveraging our strengths in providing highly reliable communications solutions and responding flexibly to customer needs in the mission critical public safety market Enter the hybrid field, which handles data and images that utilize broadband technology, in addition to the narrowband market, which primarily focuses on voice communication Transform the domestic Professional Systems Business into a business unit with stable earning power
Mobility & Telematics Services Sector	Shift from a product-based business model to one that adds value to the mobility experience throughout its entire life cycle Create new growth opportunities in the OEM Business, by accurately identifying changes in customer needs
Entertainment Solutions Sector	Capitalize on growth in music streaming and live entertainment markets by deploying an integrated value chain spanning content creation through experience delivery, thereby diversifying revenue streams and strengthening profitability Improve profitability in the Media Business and conduct business structure reforms with an eye to shifting toward the high-price range Leverage the brand license business to create stable added value

Strengthening of Management Foundation Through Projects Directed by the COO

To steadily achieve these business strategies, we are promoting two reform projects under the direct supervision of the COO as part of our efforts to strengthen our management foundation. Both are leveraging AI to carry out our reforms. We view these initiatives not simply as cost-cutting or efficiency measures, but as efforts to strengthen our management foundation to enhance our ability to consistently create value.

SCM^*2 Reform Project

We are promoting the enhancement of supply chain durability. To achieve ideal inventories, we will incorporate supply and demand adjustments based on demand forecasts that utilize AI in the SPI^*3 process and formulate optimal production plans. This will enable us to refine S&OP^*4 management that will lead to the improvement of profit and loss and cash flows. We will also strengthen our response to procurement risks and geopolitical risks in the supply chain.

*2 Supply chain management

*3 Process for integrated planning and management of sales, production, and inventory

*4 Management approach that places sales and operations planning at the center of business decision-making

Operational Reform Project

We are promoting AI-driven management. To drive Groupwide enhancement of profitability, we will advance rapid, data-driven decision-making and thorough improvements to operational efficiency.

Key Challenges and Future Initiatives Toward Achieving VISION 2030

Through VISION 2025, the Communications Systems Business made steady progress as a growth-driving business. However, several challenges remain on the path toward achieving VISION 2030.

Challenge 1	Challenge 2	Challenge 3
Variations in profitability and growth potential across business segments	Development of new business areas	Strengthening of product development capabilities
Move away from revenue and growth models dependent on specific businesses and achieve balanced Groupwide growth through management focused on return on invested capital Eliminate losses from unprofitable businesses	Generate synergies across the fields of communications, visual, and audio Realize a new business by fiscal 2028, the 20th anniversary of the Company's establishment, even if initially on a modest scale	Develop highly skilled talent involved in the product development process and build small, elite development teams Implement highly efficient manufacturing processes

The challenges listed here represent only a portion of the issues facing the Group as a whole. Each division faces its own set of challenges. Using them as reasons or excuses for inaction, however, will lead to no meaningful progress. It is essential to view these challenges as opportunities for transformation, addressing them with determination and resolving them steadily, one by one. By maintaining a strong sense of ownership and continuing to take on new challenges, every employee can contribute to enhancing corporate value and achieving sustainable growth.

Achieving VISION 2030

I have outlined our approach to achieving VISION 2030, including our business strategy policies and initiatives to strengthen our management foundation. More importantly, all of our business activities ultimately contribute to local communities and enhance corporate value, while advancing our corporate philosophy of "Creating excitement and peace of mind for the people of the world." Achieving VISION 2030 will lead to the creation of value for all stakeholders, including shareholders, employees, business partners, and customers, and the establishment of a trajectory for future generations. As COO, I will continue to dedicate myself to realizing this vision while contributing to further enhancing the significance of JVCKENWOOD's purpose.

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