Jvckenwood Corporation · TSE:6632
Jvckenwood — Investor Presentation (October 2008)
33 slides from Jvckenwood's investor presentation, Oct 1, 2008
Slide 1: Management Policies of Integrated Company
Translation for Reference and Convenience Purposes Only JVC KENWOOD Holdings, Inc. Management Policies of Integrated Company JVC KENWOOD Holdings, Inc. Chairman & CEO Haruo Kawahara October 1, 2008 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prio
Slide 2: Agenda
1. Outline of JVC Kenwood Group 2. Management Policies and Objectives 3. Forecast of FYE’09/3 Abbreviations referred to in the materials CE: Car Electronics COM: Communications Equipment HE: Home Electronics FYE: Fiscal Year Ending/Ended Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May
Slide 3: 1. Outline of JVC Kenwood Group
1. Outline of JVC Kenwood Group Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 2
Slide 4: Outline of JVC Kenwood Group: Group Structure
Outline of JVC Kenwood Group Group Structure Maximize Effect of Integration at Early Stage by Joint Holding Company and Three Business Firms The Joint Holding Company will own a 100% stake of JVC and KENWOOD through the Share Transfer By corporate split of Car Electronics business, etc., J&K Tec
Slide 5: Outline of JVC Kenwood Group: Shareholder composition
Outline of JVC Kenwood Group Shareholder composition JVC Shareholder composition (as of March 31, 2008) JVC KENWOOD Holdings Shareholder composition (Based on data as of March 31, 2008) Other Panasonic Corporation Panasonic Corporation 33.43% 36.81% 24.41% SPARX Group KENWOOD 12.75% 17.00% Other 49.
Slide 6: Personnel Numbers for Respective Firms
Outline of JVC Kenwood Group Personnel Numbers for Respective Firms (rough estimate) JVC KENWOOD Holdings Group Total: approx. 23,000 (Head Office: Yokohama) 700 New JVC 14,500 New JKTE 6,000 New KENWOOD 2,400 JVC JVC JKTE JKTE KENWOOD KENWOOD (Head (Head Office: Office: Yokohama) Yokohama) (Head (H
Slide 7: 2. Management Policies and Objectives
2. Management Policies and Objectives Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 6
Slide 8: Corporate Vision and Course of Action
Management Policies Corporate Vision and Course of Action Corporate vision “Realize the unconventional (Katayaburi wo katachi ni)” Course of Action “Perpetual reform centered on each and every individual” Based on this integration vision and course of action, both companies plan to develop into a co
Slide 9: Corporate Logo
Management Policies Corporate Logo The two ascending arc lines of the logo symbolize growth potential and expandability infinitely toward the future. They also express JVC KENWOOD HD’s resolve to lead the world with the power to realize unconventional ideas and the ability to get things done. Our ke
Slide 10: Purpose of Management Integration
Purpose of Management Integration Having seen respective structural reforms through, and using this management integration as a starting point for a new growth strategy, both Companies will be reborn as a unique, specialized and world leading manufacturing group, striving to grow and create corporat
Slide 11: Reorganization into Four Business Segments and Six Genres
Management Policies Reorganization into Four Business Segments and & Six Genres Sales Composition (FYE’08/3) Sales Composition of Both Companies Total KENWOOD (FYE’08/3) 3) Professional Systems (14%) 4) Entertainment (9%) Communications Business Car Electronics Business 1) Car Electronics (18%) Home
Slide 12: Genre-Top Strategy
Management Policies Genre-Top Strategy Through growth strategies Combined Car Electronics business will be largest, Professional systems business expected to be most profitable. 20 Four profit centers will account for Video Cameras approx. 70% of overall combined sales (FYE’11/3 target) Professional
Slide 13: Consolidated Management
Consolidated Management Basic Concept Joint Holding Company and business firms do not seek profits from single individual units but optimization of the entire group. They will enhance corporate value as a Group through sharing roles as a consolidated corporate entity. Definition of Business Firms: J
Slide 14: Three management policies
Management Policies Three management policies 1) 1) Realize Realize effects effects of of the the integration integration —Develop —Develop aa new new sustainable sustainable business business infrastructure infrastructure and and synergies synergies With the new framework of consolidated management
Slide 15: Accelerate System Management
Management Policies Accelerate System Management Greatest Problem in Consumer Business is instability due to pronounced fluctuations of sales and prices System management - Key for survival is management accuracy Improve speed and accuracy in manufacturing and inventory, linked with product developm
Slide 16: Incorporate Realized Integration Effect into New System
Incorporate Realized Integration Effect into New System Actualize integration effect with twin engines of JKHD and JKTE, promote growth strategy to grow and create corporate value JVC KENWOOD Holdings, Inc. (JKHD) Under the administration of the JKHD, we will allow the corporate infrastructure to ev
Slide 17: Realized Integration Effect into New System
Realized Integration Effect into New System (ex) JVC’s professional systems and KENWOOD’s land mobile radio equipment (IBC2008) Zetron KENWOOD Zetron JVC Exhibition at IBC2008, one of the EU’s largest international broadcasting equipment exhibitions. Copyright © 2008 JVC KENWOOD HOLDINGS All rights
Slide 18: Corporate Governance
Corporate Governance Enhance transparency of management and overall group governance, meanwhile realize speedy decision-making, and accelerate the Group growth strategy * Out of 7 Directors, 3 are External Directors, and out of 5 Statutory Auditors, 3 are External Statutory Auditors * Operating Offi
Slide 19: Corporate Governance: Directors and Auditors
Corporate Governance JVC KENWOOD Holdings Directors Auditors Chairman (Representative Haruo Kawahara Auditor Shigeharu Tsuchitani Director of the Board) President (Representative Kunihiko Sato Auditor Hideaki Kato Director of the Board) Deputy President, Hiroshi Odaka Auditor Noriyuki Shouyama Direc
Slide 20: Corporate Governance: Executive Officers
Corporate Governance JVC KENWOOD Holdings Executive Officers Chief Executive Officer Haruo Kawahara Executive Officer and Operating Officer Kunihiko Sato Executive Officer and CFO, Hiroshi Odaka General Executive, Strategic Corporate Planning Div. Executive Officer and Strategic Business Development
Slide 21: Corporate Governance: Operating Businesses
Corporate Governance Operating Businesses Representative Directors of JVC President Hidetoshi Yoshida (Promotion) (Representative Director of the Board) Executive Vice President and Ryuhei Nakazawa (Promotion) Representative Director Representative Director Haruo Kawahara (Newly elected) Representat
Slide 22: Performance Results different from combined results
Management Policies Performance Results for JVC KENWOOD HD different from the combined results of both companies As a result of effect of integration under Purchase Accounting, Results for JVC KENWOOD HD after 2nd half of FYE’09/3 lack continuity with the combined results of both companies up to 1st
Slide 23: Management Objectives
Management Objectives Lack continuity with the combined past results of both companies (Purchase Accounting) FYE’09/3 Results for JVC KENWOOD HD lack continuity with the combined results of both companies up to 1st half of FYE’09/3 FYE’11/3 Target - Net sales: (net method) ¥750 billion, Operating pr
Slide 24: Effect of Management Integration: Net Assets/Equity Ratio
Effect of Management Integration Net Assets/ Equity Ratio Net assets will be positive for both companies. Maintain equity ratio at level near 30% Net assets per share is ¥105 - ¥110 (billion yen) (trial calculation) Net assets KENWOOD 160 Impact of decline JVC 140 in share price KENWOOD 120 JVC 100
Slide 25: Effect of Management Integration: Retained Earnings
Effect of Management Integration Retained Earnings Resulting from the effect of Purchase Accounting, retained earnings use KENWOOD’s standard Loss carried forward for JVC is not incorporated into Balance Sheet 100 (billion yen) KENWOOD 80 JVC 60 40 20 0 -20 -40 FYE’04/3 FYE’05/3 FYE’06/3 FYE’07/3 FY
Slide 26: Interest-bearing Debt, Net Debt
Effect of Management Integration Interest-bearing Debt, Net Debt Interest-bearing debt increased slightly in 1st half of FYE’09/3 but still holding to the declining trend of recent years. 250 (billion yen) Interest-bearing debt 200 150 Cash and deposits JVC 100 Cash and deposits KENWOOD 50 JVC Net d
Slide 27: Car Electronics Business System of Operation
Management Policies Car Electronics Business System of Operation Strive to maximize synergies at early stage centering on JKTE JVC KENWOOD HD JVC JKTE KENWOOD Car Car Electronics Electronics (Car (Car Electronics Electronics Business Business Firm) Firm) Car Car Electronics Electronics Product plann
Slide 28: Car Electronics Business Strategy
Management Policies Car Electronics Business Strategy We will strive for growth in our largest segment by sales through synergies * In Consumer Car Audio business, expand market share in primary markets in the US, EU and Japan - Further enhance business strategies as global leader * Expand sales of
Slide 29: Home & Mobile Electronics Business Strategy
Management Policies Home & Mobile Electronics Business Strategy We will strive to pull Display Business in the black through far-reaching reforms Business in Japanese market, the lowest in profitability, is cut back broadly. Improve manufacturing added value by turning to EMS in the EU and accel
Slide 30: 3. Forecast of FYE'09/3
3. Forecast of FYE’09/3 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 29
Slide 31: Forecast of FYE'09/3 Net sales/Income
Forecast of FYE’09/3 Net sales/Income * FYE’09/3 Forecast for JVC KENWOOD HD lack continuity with the combined results of both companies up to 1st half of FYE’09/3 as a result of Purchase Accounting * As a result of change of accounting policies (integration into net method), net sales amount decrea
Slide 32: Dividend Policy for FYE'09/3 and in future
Dividend Policy for FYE’09/3 and in future FYE’09/3 Year-end dividend will be passed over to concentrate on growth and creation of corporate value, including building of a new foundation for corporate survival and realizing synergies through management integration. FYE’10/3 and afterwards JVC Kenwoo
Slide 33: www.jk-holdings.com
www.jk-holdings.com When included in this presentation, the words “will”, “should”, ”expects”, ”intends”, ”anticipates”, ”estimates” and similar expressions, among others, identify forward looking statements. Such statements are inherently subject to a variety of risks and uncertainties that could c
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