Jvckenwood Corporation · TSE:6632
Jvckenwood — Corporate Update (December 2022)
29 slides from Jvckenwood's corporate update, Dec 14, 2022
Slide 1: Communications Systems Business Briefing
Translation for Reference Only Communications Systems Business Briefing JVCKENWOOD Corporation December 14, 2022
Slide 2: Business Overview & Professional Radio; Market Environment & Business Strategy
1. Business Overview & Professional Radio 2. Market Environment & Business Strategy
Slide 3: 1. Business Overview & Professional Radio
1. Business Overview & Professional Radio 2. Market Environment & Business Strategy
Slide 4: Revenue composition ratio by sector for FYE 3/'22
Revenue composition ratio by sector for FYE 3/’22 Others（2%） 19% Others 5% Entertainment 7% Media 12% OEM 36% Professional Revenue Systems Composition Ratio 8% （28.21 billion yen) Communications Systems 13% 58% Aftermarket Telematics 21% Service 16% 6% 44
Slide 5: Main categories
Main categories Professional radio communications systems Portable radios Mobile radios Repeater Installed on top of buildings and mountains Console License-free radio Amateur radio No license, qualification or application required. For personal use. Requires an amateur radio license. 5
Slide 6: History of Communications Systems Business
History of Communications Systems Business 2018 Capital and business alliance with Tait International Ltd. 2018 Radio Activity S.r.l. becomes a consolidated subsidiary Professional Digital Radio Systems (New product VP8000 (center) 2014 EF Johnson Technologies, Inc. becomes a consolidated subsidiary
Slide 7: Main business locations for Communications Systems Business
Main business locations for Communications Systems Business JVCKENWOOD Yamagata Corporation EF Johnson Technologies, Inc. (Yamagata Prefecture, Japan) (Dallas, Texas, U.S.A.) Radio Activity S.r.l. (Milan, Italy) Hakusan Business Center （Yokohama City, Japan) JVCKENWOOD Electronics Malaysia Sdn. Bhd.
Slide 8: Strengths of JVCKENWOOD's Communications System Business
Strengths of JVCKENWOOD's Communications System Business ◼ Four major strengths: Entered overseas markets Over 40 years of in the 1980s experience and trust Network of approx. 900 Results in the North American distributors private market in North America Customization for high quality, Long-term cus
Slide 9: Our track record of introducing to the public safety market
Our track record of introducing to the public safety market ◼ For police, fire, and emergency services in multiple counties in the U.S. ➢ County of Santa Barbara, California USD 31M ➢ Frederick County, Virginia USD 23M ➢ Delaware County, Pennsylvania USD 34M ◼ U.S. Government Agencies ➢ Department o
Slide 10: Our track record of introducing to private market
Our track record of introducing to private market ◼ Railroad companies in North ◼ Airports America (over 90% market share) ➢ Istanbul Airport ◼ Electric, water and gas utilities ◼ Logistics warehouses ◼ Private security companies ◼ Golf courses ◼ Hotels and casino resorts ◼ Food, beverage and retail
Slide 11: Performance trends of Communications Systems Business
Performance trends of Communications Systems Business ◼ Core operating profit margin increased from FYE 3/’18. ◼ Americas accounts for approx. 74% of sales revenue by region. Revenue composition ratio （billion yen） by region (FYE3/'22) Others Asia & China 1% 5% Sold Zetron Japan 10% EMEA 11% America
Slide 12: Features of professional radio systems
Features of professional radio systems ◼ Advantages over cell phones and smartphones • Command and guide many people at once. One-to-many • Easy operation with a single push of the push-to-talk immediate calls (PTT) button. Resilient to • Wide communication coverage area secured by repeaters. emerge
Slide 13: Videos
Videos ① Product development with customers ② Noise canceling function ③ Quality testing conducted at the business center 13
Slide 14: Digitalization of professional communications systems in North America and its benefits
Digitalization of professional communications systems in North America and its benefits ◼ The P25 standard, a digital standard for North American public safety, was created in 1989. ◼ Frequency exhaustion due to the spread of cellular phones since 2000. ◼ In response to the frequency exhaustion issu
Slide 15: Rapid growth of the Communications Systems Business
From the presentation material of the financial results for the second quarter of the fiscal year ending March 31, 2023 Rapid growth of the Communications Trends in backlogs of orders (Millions of USD) Systems Business -> To be a stable source of for communications systems (US market) revenue <Backg
Slide 16: 2. Market Environment & Business Strategy
1. Business Overview & Professional Radio 2. Market Environment & Business Strategy
Slide 17: Market size of professional radio (all regions)
Market size of professional radio (all regions) Professional radio market size (USD million) ◼ This material adopts four categories. ◼ Slight contraction from 2019 to 2020 due to COVID-19 impact but recovered from 2021. ◼ Both categories are projected to expand through 2025. ■ Public Safety Market:
Slide 18: Market segment and major communication protocols in this document
Market segment and major communication protocols in this document ◼ While referring to the OMDIA report as market data, the following market segments are used for convenience in this document. ➢ Public safety market: P25, TETRA, TETRAPOL, PDT ➢ Private market: DMR, NXDN, Others (including dPMR)、Anal
Slide 19: Our target markets and their sizes (all regions in 2021)
Our target markets and their sizes (all regions in 2021) ◼ Target markets: public safety market and private market. Public Safety Private Market Market Public safety market: Private market: P25・TETRA・TETRAPOL・PDT DMR・NXDN・dPMR・Analog・Others ●Schools ● Airports ● Railways ● Construction ●Police ●Fire
Slide 20: Our market share (all regions in 2021)
Our market share (all regions in 2021) ◼ Company A has by far the largest market share in the public safety market and the private market. Private market share in 2021 D 5% Others JVCKENWOOD Professional radio market in 2021 10% 6% D 2% Private B Market JVCKENWOOD 9% US$3,717M 3% Others 10% A 71% C
Slide 21: Market size by region (2021, USD million)
Market size by region (2021, USD million) ◼ North America is by far the largest market. North America 716 3,779 Europe China, Hong Kong 1,057 1,110 349 707 838 3,062 Japan 1,340 1,346 272 *Mainstream standards such as P25 and DMR are not used in Japan due to its own 128 185 6 communication standards
Slide 22: External growth factor: market forecast for our target markets
External growth factor: market forecast for our target markets Market size forecast for professional radio (USD million) Both public safety and private markets, which is our target markets, are expanding toward 2025. ◼ Switching from analog to digital increased product unit price/system price. ◼ Lar
Slide 23: Internal factor of growth 1: Launch of new high-performance products
Internal factor of growth 1: Launch of new high-performance products ◼ Launch of the new VP8000 tri-band-compatible radio equipment, which covers 3 frequency bands*1 and 2 digital protocols*2 in one unit, leading to an expanded presence in the United States (January, 2023) ➢ A single radio unit enab
Slide 24: Example of a business model for the P25 market
Example of a business model for the P25 market *Not applicable to all of our products. ◼ In addition to the terminal itself, basic accessories and a variety of software options are required to use the wireless terminal in a way that meets the user's needs. ◼ Software options include essential functi
Slide 25: Internal factor of growth 2: strengthening of business structure
Internal factor of growth 2: strengthening of business structure Company-wide efforts to permanently strengthen the business structure 2018- T Project 2020- Management Base Reform 2020- CEM* Project ‘23/3月期予想 FYE3/’23 forecast Initiatives of Communications Systems Department Improve profitability th
Slide 26: Future growth strategy
Future growth strategy ◼ Aim for steady sales growth in expanding markets with clearly prioritized goals and investments. Strengthening production lines, sales channels, and ensuring human resources for solution development ① USD 400M sales in the North American public safety market (approx. 4 times
Slide 27: Expand sales in the North American public safety market
Expand sales in the North American public safety market ◼ Aiming to achieve USD 400M in sales in the expanding North American public safety market (approx. 4 times current sales). ◼ Accelerate the acquisition of bids from approx. 3,000 counties in the U.S. that will be digitized sequentially, aiming
Slide 28: Strengthening of domestic business
Strengthening of domestic business ◼ Introduction of digital convenience radio equipment with antibacterial and antiviral processing*1 ◼ Sales of disaster prevention radio equipment to local governments remains steady. ◼ Expanding market demand toward FY2024 due to changes in the radio administrativ
Slide 29: Forward-looking statements disclaimer
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot