Jvckenwood Corporation · TSE:6632

Jvckenwood — H1 FYE March 2009 Earnings Presentation

39 slides from Jvckenwood's earnings presentation, Oct 28, 2008

  1. Slide 1: JVC Kenwood Group Results and Forecast Briefing

    Translation for Reference and Convenience Purposes Only JVC Kenwood Group Results and Forecast Briefing For Fiscal Year Ending March 2009 JVC KENWOOD Holdings, Inc. October 28, 2008 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approv

  2. Slide 2: Agenda and abbreviations

    First Half Financial Results of Victor Company of Japan, Limited Masaaki Takeda, Executive Officer / Manager of Strategic Finance & Accounting Division First Half Financial Results of Kenwood Corporation Hiroshi Odaka, Deputy President & CFO JVC Kenwood Group Earnings Forecast and Priority Policies

  3. Slide 3: First Half Financial Results of Victor Company of Japan, Limited

    First Half Financial Results of Victor Company of Japan, Limited Fiscal Year Ending March 2009 JVC Kenwood Holdings, Inc. Executive Officer / Manager of Strategic Finance & Accounting Division Masaaki Takeda October 28, 2008 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copie

  4. Slide 4: First Half Financial Highlights

    First Half of FYE’09/3 - Financial Highlights Operating Operating results results turn turn from from deficits deficits to to surplus surplus zz Consumer ConsumerElectronics Electronics… …Structural Structuralreforms reformsandandreduced reduceddeficits deficitsfor for １ １ important importantbusines

  5. Slide 5: First Half of FYE'09/3 - Summary of Business Results

    First Half of FYE’09/3 - Summary of Business Results Reported on First Half Changes from Year-on-year (bilion yen) Actual Sept. 25 FY2007 Actual reported figures changes Net sales 270.1 275.0 330.2 -4.9 82% 0.5% 0.4% -1.6% 0.1% First Half Operating profits 1.3 1.1 -5.4 0.2 6.7 (Consolidated) -1.0% -

  6. Slide 6: Net Sales (changes over a year ago)

    Net Sales (changes over a year ago) First First Half Half FYE’08/3 FYE’08/3 First First Half Half FYE’09/3 FYE’09/3 Year-on-year changes -60.1 Net Net sales sales 330.2 330.2 Net Net sales sales 270.1 270.1 billion yen billion billion yen yen billion billion yen yen Transfer Transfer of of Business

  7. Slide 7: Operating Profits (changes over a year ago)

    Operating Profits (changes over a year ago) First First Half Half FYE’09/3 FYE’09/3 First First Half Half FYE’09/3 FYE’09/3 Year-on-year changes +6.7 Operating Operating Operating profits profits Operating profits profits billion yen -5.4 -5.4 billion billion yen yen 1.3 1.3 billion billion yen yen

  8. Slide 8: Business segment - Consumer

    Business segment - Consumer FYE’08/3 1Q 2Q 3Q 4Q FYE’09/3 1Q 2Q (billion yen) First half sales 134.3 Business results Previous year Year-on year / difference Sales 198.6 240.4 83% 118.8 121.6 1.3% -0.4% Operating prof it 2.7 -1.0 3.6 100.1 98.5 94.8 3.4 operating profits 2.2 1.7 5.0 0.1 -1.0 Copyrig

  9. Slide 9: Consumer Segment - Operating Margin by Product

    2. Segment Information Consumer Segment - Operating Margin by Product First half FYE’08/3 First half FYE’09/3 Camcorders Car Electronics AV Accessories Audio Displays Loss Profit Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval.

  10. Slide 10: Consumer Segment - Measures for Camcorder Business

    Consumer Segment - Measures for Camcorder Business Year-on-year Year-on-year number number of of camcorders camcorders Changes Changes in in shares shares of of main main camcorder camcorder models models 12% Shares of number of camcorder in the 10% domestic market Gfk, NPD data GZ-MG330 8% 6% GZ-HD

  11. Slide 11: Consumer Segment - Display Business Conditions

    Consumer Segment - Display Business Conditions Reform measures in first half Steady reform effect versus increased profits by 2.03 billion on a progress of annual plan: 39 percent year-on-year basis Analysis Analysis of of operating operating profits profits in in first first half half Management Ma

  12. Slide 12: Business Segment - Entertainment

    Business Segment - Entertainment FYE’08/3 1Q 2Q 3Q 4Q FYE’09/3 1Q 2Q (billion yen ) First Half Actual Previous year YoY / difference Net sales 31.8 34.2 93% -0.6% -2.6% Net sales Operating profit -0.2 -0.9 0.7 18.9 19.2 17.7 17.2 15.4 14.6 Operating profit 0.7 0.8 0.6 0.3 -0.5 -1.6 Copyright © 2008

  13. Slide 13: Business Segment - Professional

    Business Segment - Professional FYE’08/3 1Q 2Q 3Q 4Q FYE’09/3 1Q 2Q (billion yen ) First half Previous Change over Actual year year/difference Net sales 29.7 31.3 95% -1.4% -1.8% Operating prof it -0.4 -0.6 0.2 Net sales 18.7 17.5 16.5 15.2 13.8 13.2 2.2 Operating profit 0.7 0.5 0.6 -1.1 -1.0 Copyri

  14. Slide 14: Financial Status

    Financial Status vs / 07/3 '08/3 (billion yen) '07/9 '08/9 previuos (Annual) (Annual) Year Total assets 420.7 405.4 315.0 301.9 -103.5 Net assets 133.8 128.9 114.1 106.3 -22.6 Operating profit -5.7 -5.4 3.3 1.3 6.7 Operating profit on total assets (annual rate) -1.3% -2.6% 0.9% 0.8% 3.5% （50 days） 5

  15. Slide 15: First Half Financial Results of Kenwood Corporation

    First Half Financial Results of Kenwood Corporation Fiscal Year Ending March 2009 JVC Kenwood Holdings, Inc. Deputy President & CFO Hiroshi Odaka October 28, 2008 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval.

  16. Slide 16: Summary of First Half Financial Results

    Summary of First Half Financial Results Abbreviations referred to in the materials CE: Car Electronics COM: Communications HE: Home Electronics Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 16

  17. Slide 17: Consolidated Profit & Loss

    Financial Results for First Half of FYE’09/3 Consolidated Profit & Loss Compared to same period of previous year * Higher yen caused decrease in net sales and profit * Slight decrease in net sales and increase in profit on local currency basis excluding the exchange rate effect Compared to beginning

  18. Slide 18: Consolidated Net Sales

    Financial Results for the First Half of FYE’09/3 Consolidated Net Sales Approximately 80.1 billion yen, a decrease by 6.5% from previous period (compared to beginning-of-period forecast: +2.6 billion yen) * Decreased by 5.5 billion yen from previous period (-6.5%) due to sluggish cell phone sales se

  19. Slide 19: Consolidated Operating Profit

    Financial Results for the First Half of FYE’09/3 Consolidated Operating Profit Profits of approximately 1.5 billion yen were reported, a fall of 40.8 % compared with those of the previous term. * Although profits were depressed by the higher yen and loss from inventory amounting to approximately 400

  20. Slide 20: Consolidated Ordinary Income

    Financial Results for the First Half of FYE’09/3 Consolidated Ordinary Income Approximately 1.1 billion yen, decreased by 29.9% from the previous period * An increase in non-operating profits including profits from earnings of overseas subsidiaries and decrease in non- operating expenses, partly mak

  21. Slide 21: Consolidated Net Income

    Financial Results for the First Half of FYE’09/3 Consolidated Net income Approximately 100 million yen, a 93.8% decrease from previous period *In spite of a decrease in recurring profits as well as appraisal losses on inventory and special retirement reserves reported as extraordinary loss, profit f

  22. Slide 22: Financial Status

    Financial Results for the First Half of FYE’09/3 Financial Status Balance sheet * Total assets decreased due to increase in accounts receivable and inventory, decrease in market value of investment in securities * Net assets decreased due to decrease in retained earnings, decrease in unrealized gain

  23. Slide 23: Segment Information

    Segment Information Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 23

  24. Slide 24: CE Business

    Financial Results for the First Half of FYE’09/3 CE Business Net sales >> Approximately 45.6 billion yen, decreased by 3.8% from previous period * Commercial segment is flat from previous period with robust overseas navigator and audio market absorbing higher yen effect * The Company reported a decl

  25. Slide 25: COM Business

    Financial Results for the First Half of FYE’09/3 COM Business Net sales >> Approximately 29.6 billion yen, a 10.3 decrease from previous period * Net sales of wireless machinery segment, one of the core businesses of the Company, were the same level of last year’s earnings owing to appreciation of t

  26. Slide 26: HE Business

    Financial Results for the First Half of FYE’09/3 HE Business Net sales >> Approximately 37billion yen, 5.4% decrease from previous period * With the market shrinking, net sales remained the same level as the previous term, owing to the introduction of increased lineup and even more sophisticated, va

  27. Slide 27: JVC Kenwood Group Business Forecasts and Priority Policies for the Second Half

    JVC Kenwood Group Business Forecasts and Priority Policies for the Second Half Fiscal Year Ending March 2009 JVC Kenwood Holdings, Inc. Chairman & CEO Haruo Kawahara October 28, 2008 Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written appro

  28. Slide 28: Business Forecasts for FYE'09/3

    Business Forecasts for FYE’09/3 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 Simple summation of net sales and income/loss of both companies Net sales and income/loss for JVC・Kenwood・HD Net sales (JPY in Billion) * Sales f

  29. Slide 29: Business Forecasts for FYE'09/3

    Business Forecasts for FYE’09/3 *Establish principal measures considering worsening management environment. *Committee to reform cost structure was established, undertaking an initiative to address deteriorated market conditions, and to make the utmost use of the integration as soon as practicable.

  30. Slide 30: Priority Policies for the Second Half

    Priority Policies for the Second Half Copyright © 2008 JVC KENWOOD HOLDINGS All rights reserved. May not be copied or reprinted without prior written approval. 30

  31. Slide 31: Car Electronics Business

    Priority Policies for the Second Half of FYE’09/3 Car Electronics Business * Launch partially new product lineup for 2009 in advance * Promote business using strengths of both brands and enhance cost competitiveness using J&K technologies * Launch new AV-installed car navigation system in collaborat

  32. Slide 32: Home & Mobile Electronics Business - Display Segment

    Priority Policies for the Second Half of FYE’09/3 Home & Mobile Electronics Business - Display Segment *Steadily execute business structural reforms and sure result implementation of results >> - Trim domestic business - Accelerate Europe EMS ~ collaboration business - Reform overseas operations, et

  33. Slide 33: Home & Mobile Electronics Operations

    Priority Policies for the Second Half of FYE’09/3 Home & Mobile Electronics Operations *Home audio market: Better cost competitiveness and a wider range of profitable models as a result of cooperation and reducing unprofitable models Promotion of profitable AV accessory segment (including display se

  34. Slide 34: Professional System Operations

    Priority Policies for the Second Half of FYE’09/3 Professional System Operations *Stronger sales of Professional digital wireless devices and wireless systems *Generating new demand for systems for professional use, and wireless equipment for business use, taking advantage of the Company’s network o

  35. Slide 35: Entertainment Operations

    Priority Policies for the Second Half of FYE’09/3 Entertainment Operations * Redefining former sales policy * Transfer of recording media segment: developing contents, strengthening artist career development plan, devotion to protect and obtain patents and other exclusive rights in relation to the C

  36. Slide 36: Anticipated integration benefits for the second half

    Priority Policies for the Second Half of FYE’09/3 Anticipated integration benefits for the second half of this financial year Apply purchase accounting * Increase operating profit due to reduced retirement allowance payments and lower restructuring costs * Increase non-operating income due to “negat

  37. Slide 37: Commitment to the Structural Reform to Reduce Costs

    Priority Policies for the Second Half of FYE’09/3 Commitment to the Structural Reform to Reduce Costs JVC established the committee to reform cost structure of the Company effective October 1, 2008 to encourage reform of cost structure to cope with deterioration of circumstances surrounding manageme

  38. Slide 38: Commitment to the Structural Reform to Reduce Costs

    Priority Policies for the Second Half of FYE’09/3 Commitment to the Structural Reform to Reduce Costs (3) Structural Reform to Reduce Costs – Reorganize Platform and Come up with a Grand Plan * Corporate Division: Review of the cost structure of operating companies, system and objective of Developme

  39. Slide 39: Forward-looking statements

    Expressions contained in this presentation materials 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, uncer

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