Jvckenwood Corporation · TSE:6632
Jvckenwood — Investor Presentation (May 2010)
27 slides from Jvckenwood's investor presentation, May 28, 2010
Slide 1: Action Plan for Reconstructing the Corporate Base
Translation for Reference Only JVC Kenwood Group Action Plan for Reconstructing the Corporate Base Medium-term Management Plan from FYE3/’11 to FYE3/’13 JVC KENWOOD Holdings, Inc. Haruo Kawahara, Chairman, President and CEO May 28, 2010 Copyright © 2010 JVC KENWOOD HOLDINGS All rights reserved. May
Slide 2: Highlights
Highlights Completed implementing principal measures for structural reforms concerning unprofitable businesses at the end of March 2010. >> Expected to return to profit at the Operating profit level for FYE3/’11 Shifting to growth from structural reform in a struggle for survival by carrying out act
Slide 3: Purpose of formulating the Medium-term Management Plan
Purpose of formulating the Medium- term Management Plan Abbreviations CE: Car Electronics BB: Professional Systems COM: Communications, BS: Business solution HM: Home& Mobile Electronics DP: Display, CAM: Camcorder, HA: Home Audio, AVC: AVC accessory SE: Entertainment
Slide 4: Looking back on FYE3/'10
Looking back on FYE3/’10 In FYE3/’10, we implemented the Business Structural Reform Action Plan that focused on improving profit and loss of unprofitable businesses with the Car Electronics Business and Land Mobile Radio segment positioned as earnings bases. We completed implementing principal measu
Slide 5: Progress in and results of Business Structural Reform Action Plan
Looking back on FYE3/’10 Progress in and results of Business Structural Reform Action Plan formulated in October 2009 1. Home & Mobile Electronics (DP, CAM) 1) Structural reform in Europe − Completed at the end of 4Q of FYE3/’09 (Profit/loss improvement effects of 3 billion yen − These effects are i
Slide 6: Earnings forecast for FYE3/'11
Earnings forecast for FYE3/’11 We expect to return to profit on an operating level on a full-year basis in total of unprofitable businesses (DP, CAM and BS business segments) in FYE3/’11 due to the profit/loss improvements effect of 8 billion yen achieved as a result of the Business Structural Refor
Slide 7: Purpose of formulating the Medium-term Management Plan
Purpose of formulating the Medium-term Management Plan However, it is essential that we implement stepped-up measures to reconstruct the corporate base and make it appropriate for the current sales size. This will be based on downsizing some of the businesses such as DP business due to changes in th
Slide 8: Action Plan for Reconstructing the Corporate Base
Action Plan for Reconstructing the Corporate Base
Slide 9: Reform of unprofitable operations
Action Plan for Reconstructing the Corporate Base In addition to the effects of Business Structural Reform Action Plan implemented in the previous fiscal year (profit/loss improvement effects of approximately 8 billion yen), we expect to generate the additional effects of about 10 billion yen/year e
Slide 10: Reconstructing the global operation system
Action Plan for Reconstructing Corporate Base (2)Reconstructing the global operation system 1) Sellout and reallocation of the Head Office (announced May 28, 2010) * Selling the Yokohama Head Office and promoting integrated operation and cost reduction by reallocating the head office function. 2) Re
Slide 11: Increasing cash flows and reducing total assets
Action Plan for Restructuring Corporate Base 3) Reviewing human resources framework * Implementing reallocation, employment transfer and reduction of a thousand and several hundred employees across the Group companies in Japan and overseas altogether. (Making a decision in accordance with the progre
Slide 12: Creating prospects for returning all businesses to the black
Action Plan for Reconstructing Corporate Base Creating prospects for returning all businesses into the black and aiming to return to profit at the ordinary income level in FYE3/’11. 600 30 Net Operating profit (billion yen) Action Plan for 400 sales reconstructing corporate base Net sale (billion ye
Slide 13: Medium-term Management Plan
Medium-term Management Plan Aims to establish a new position as a manufacturer specialized in Japanese audio visual products Note: In the business segmentation for financial statements for FYE3/’10, patent revenue and profit/loss related to the business incubation business were included in the “Othe
Slide 14: Medium-term Strategies
Medium-term Strategies Medium-Term Strategies - Reconstructing earnings bases and resuming dividend payment at an early date 1) Focusing efforts on businesses with a competitive advantage to aim at achieving integration effects and profitable growth in emerging markets. * Expanding the sales composi
Slide 15: Converting the business portfolio (sales composition)
Medium-term Strategies Converting the business portfolio (sales composition) Concentrating efforts on businesses with competitive advantage： From the consumer segment to the in-car/professional segment 100% SE Other HM 36% SE 80% 44% Sales composition 47% HM Other 56% AVC 60% HA 60% CAM BB DP HM 40%
Slide 16: Converting the business portfolio (Net sales/Operating profit)
Medium-term Strategies Converting the business portfolio (Net sales/Operating profit) Net sales (billion yen) Operating profit (billion yen) 600 20 300 0 0 -20 FYE3/’09 FYE3/’10 FYE3/’11 FYE3/’13 FYE3/’09 FYE3/’10 FYE3/’11 FYE3/’13 (Plan) (Plan) (Plan) (Plan) CE BB HM SE Other 16
Slide 17: Changes in earnings by segment
Medium-term Strategies Changes in earnings by segment (FYE3/’09 >> FYE3/’10 >> FYE3/’11 >> FYE3/’13) 8 FYE3/’13 FYE3/’13 FYE3/’09 Operating profit (billion yen) CE BB HM FYE3/’09 FYE3/’13 SE FYE3/’13 0 100 FYE3/’09 200 Net sales (billion yen) FYE3/’09 -8 17
Slide 18: Medium-term target
Medium-term management plan Medium-term target * Fiscal year ending March 2011 Post an ordinary income * Fiscal year ending March 2012 Post a net income * Fiscal year ending March 2013 Post net sales of 450 billion yen, Operating profit of 14.5 billion yen (return all businesses to the black), and n
Slide 19: Medium-term management plan: Target by segment
Medium-term management plan Target by segment (billion yen) Segment (Reference) (Reference) FYE3/’11 FYE3/’13 FYE3/’10 Earnings Change (New segmentation) Target forecast Annual growth Net sales 200.3 200-210 280 Car Electronics + of app.16% Professional Systems Operating profit 1.7 3 13 +10 Net sale
Slide 20: Business strategies and target - Car Electronics
Business strategies and target - Car Electronics Consumer * Actively developing the emerging markets including those in Brazil, India and China * Enforcing the car navigations systems commercially available in Japan by taking advantage of the effect of consolidation OEM * Increasing the number of or
Slide 21: Business strategies and target - Professional Systems
Business strategies and target - Professional Systems Consolidated operation of Kenwood’s COM and JVC’s BS, creation of business in the public safety and security market COM − Second place in the world * Expansion of Digital Land Mobile Radios * Expansion of business region from supply of radio term
Slide 22: Business strategies and target - Home & Mobile Electronics
Business strategies and target - Home & Mobile Electronics Aiming for new development by promoting a fabless structure and partnership strategy DP Partnership strategy taking advantage of power of brand, product planning and development ability, and sales network CAM Reinforcing cost competitiveness
Slide 23: Business strategies and target - Entertainment
Business strategies and target - Entertainment * Business expansion and enhancement by spotting and fostering new talents * Realizing comprehensive entertainment which corresponds to diversification of media such as music distribution 80 Net sales (billion yen) 60 40 20 0 FYE3/’09 FYE3/’10 FYE3/’11
Slide 24: Business strategies and target - New operation, new business and other businesses
Business strategies and target - New operation, new business and other businesses * Releasing and commercializing products such as Home AVC which offers new lifestyle, tuners supporting new network services and mobile AV, and promoting development of next-generation products * Strengthening efforts
Slide 25: Financial and capital strategies
Financial and capital strategies Financial and capital strategies * Improving earnings by recovering and strengthening business, improving current balance by decreasing interest-bearing debts and minimizing extraordinary loss as a result of completion of structural reform * Improving cash flows by r
Slide 26: Management reform - Consolidation of operating companies and integrated group
Management reform - Consolidation of operating companies and integrated group Advancing study of early integration of operating companies toward optimization of group management and maximization of integration effects JVC KENWOOD Holdings, Inc. Chairman, President and CEO Haruo Kawahara (Reappointed
Slide 27: Forward-looking statements
Expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as forward-looking statements. Such statements reflect management's expectations of future events, and accordingly, they are inherently susceptible to risk, uncertainty and
JVC KENWOOD Holdings — Investor Presentation (May 2010) on 6ix