JVCKENWOOD REPORT 2015 Company Profile Sectioncontents
Coporate Vision / Business Composition ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 01
Overview of the JVCKENWOOD Group ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 02
Financial Highlights ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 03
Management Message ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 04“Vision 2020,” Mid- to Long-term Business Plan ・・・・・・・・・・・・・・・・・・・・ 06
Business Highlights ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
Outline of Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12
Automotive Sector ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14
Public Service Sector ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16Media Service Sector ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18
Global Brand Strategy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20
Corporate Social Responsibility (CSR) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
Corporate Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27
Stakeholder Engagement ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 30
Corporate History ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 32
Network (Global) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34
Network (Japan) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 35
Management Team ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 36
Corporate Profile / Stock Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 37

CORPORATE VISION

Corporate Vision / Business Composition

Creating excitement and peace of mind
for the people of the world.

Media Service
SectorMedia BusinessEntertainment Business

Automotive
Business Composition
as of 1 July, 2015

SectorConsumer Business
Dealler-installed Option Business
Factory-installed Option Business

Public Service
SectorSafety Business
Healthcare Business[Disclaimer] Forward-looking statements and graphs contained in our documents are based on currently available information andtherefore actual results may significantly differ from projected figures depending on various factors. Please do not make any material
judgments based on the projections contained herein alone. Our core businesses deal with the rapidly changing electronics sector, andfactors including technology, demand, price, competitive environment, changes in economic environment, exchange rate fluctuations
and many other factors may adversely impact management results or the financial condition of the Company.
1Summary

Overview of the JVCKENWOOD Group

Overview of the JVCKENWOOD Group

1 Create excitement and peace of mind as a global manufacturer
specializing in electronic and entertainment products.

Management
policy2 Realize profitable growth by concentrating on strong business.
3 Be a company widely trusted by society.
Every individual to take charge and strive for never ending reform.

Conduct guide

Sales Composition for FYE 3/’15

Others 2.0%

26%

Media Service
sectorAutomotive
sectorPublic Service
sector42%

30%
Production and Sales Structure

8 sites in Japan, 6 sites in global
The global production ratio is 85%
20 sites
Overseas sales sites
The global sales ratio is 63%
Production sites

Production Composition by region (FYE 3/’15)

Sales Composition by region (FYE 3/’15)

Europe 1%
Japan
China

15%

28%

Asia &
Others19%

EuropeSoutheast Asia

56%

15%

Japan

37%

America29%* Production sites, global sales sites as of July 1, 2015 * Global production ratio and sales ratio are based on FYE 3/'15.

2

FINANCIAL HIGHLIGHTS

Financial Highlights
JVC KENWOOD Corporation and Consolidated Subsidiaries
Fiscal year ended March 31 2015

Net sales(Billions of yen)

300

Operating income(Billions of yen)

316.3

306.6

285.0

9.8

8

200

6.8

6

4.6

4

100

2
0

0
FYE 3/ ’13

FYE 3/ ’14

FYE 3/ ’15

FYE 3 / ’13

Total assets / Equity

240

EquityInterest-bearing debt
(Billions of yen)

279.0

267.4

246.7

86.5

81.7

80

Net debt

73.6

60

180
120

FYE 3 / ’15

Interest-bearing debt / Net debt

Total assets(Billions of yen)

FYE 3 / ’14

67.5

60

60.2

40

79.8

28.7

20

0

26.5

18.5

0
FYE 3/ ’13

FYE 3/ ’14

FYE 3/ ’15

FYE 3 / ’13

FYE 3 / ’14

FYE 3 / ’15(Millions of yen)

FYE 3/ ’13
Net sales
Operating income
Ordinary income (loss)
Net income (loss)
Total assets
EquityEquity per share (yen)Capital adequacy ratio (%)*1
Retained earnings
Interest-bearing debt
Net debt
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Number of employees

306,581
9,761
3,263
1,243
246,735
67,518475.1926.6
24,68786,46728,706
9,772(13,357)(8,609)12,781FYE 3/ ’14
316,343
4,592
100(6,450)267,380
60,224375.8919.4
17,422
81,663
26,473
14,944(10,658)(9,582)
19,791FYE 3/ ’15
285,010
6,757
3,362
4,795
279,041
79,762521.5725.8
22,181
73,61918,542
8,575(3,857)(7,515)
17,668*2*1 (Equity – Minority interests) ÷ Total assets*2 The numbers of employees are decreased by 2,123 from the end of the previous fiscal year. This is due to employee reduction of overseas subsidiary factory.

3Management Message

Creating excitement and peace of mind
for the people of the world.
As a global company group creating excitement
and peace of mind for its customers, the
JVCKENWOOD Group is working towards profitable
growth and aiming to become a group trusted
widely by society.
During the fiscal year ended March 2014, wefaced difficulties, such as further weakening of the
yen and shrinking of the home electronics market.
To respond to such situations, we took measures,such as overall cost reform to counteract theeffects of the weaker yen, revitalization of ourmainstay overseas businesses and expansion of
professional systems businesses through M&A andother means. Such efforts brought about positive
results in the fiscal year ended March 2015, andwe were able to resume dividend payments.
In view of the recent rapid weakening of the yen,shrinking of the consumer electronics market as aresult of the rise of smartphones and changes inthe external environment, such as innovation ofdigital and optical technologies, JVCKENWOOD
developed “Vision 2020,” a new mid- to long-termbusiness plan with an eye towards the fiscal year
ending March 2021, and started taking measuresin accordance with the plan.

4

Under the “Vision 2020,” the JVCKENWOOD
Group has set return on equity (ROE) as its principal
management indicator and is promoting reform ofmanagement by shifting its focus to fields where
it can capitalize on its strengths. At the sametime, we will integrate its technological assets
and go from being a traditional manufacturing
and sales company which develops, manufacturesand sells products, to being a company thatcreates customer value by providing solutions toproblems of its customers. In order to achieve
it, JVCKENWOOD changed its organizational
structure according to the customers’ industry,
aiming to significantly drive the growth of theautomotive sector, which forms “growth-leadingbusinesses,” supported by cash flows generated by
the public services sector and the media services
sector, which form “profit-base businesses.” Wethus established new “shape of the company”
under the new management team approved by
the 7th General Meeting of Shareholders.
Under the new approach of the Company, weare determined to carry out various measuresand boldly execute new growth strategy, such ascommercialization of next-generation businesses,
to take a great leap forward in the future.

MANAGEMENT MESSAGE

We aim to become a corporate group that is widely trusted by society
We believe that it is critical for a company tomeet the expectations of various stakeholders,earn the trust of society, and continue contributing
to society in order to achieve sustainable growthin society.
As well as targeting profitable growth, the
JVCKENWOOD Group contributes to communities
by improving the quality of all corporate activities
related to our products and services, strengthening
competiveness, and conducting businessactivities that leverage our strengths, in order tobecome a corporation trusted by all stakeholders,
including consumers and corporate clients.

At the same time, we will promote community-basedsocial contribution activities and environmental
protection activities for the coming generations.
The JVCKENWOOD Group will further enhance
its crisis management system, drawing on
experience of the Great East Japan Earthquakes
and floods in Thailand, and reinforce measuresagainst various risks and organization-wide
initiatives for business continuity.
Thank you for your understanding and support.
July 2015

Takao Tsuji

Haruo Kawahara

President and COO

Chairman and CEO

5

“Vision 2020,” Mid- to Long-term Business Plan
There have been structural changes in the external environment, such as the rapid depreciation of the yen; a shrinking consumer
electronics market due to the widespread use of smartphones; and innovations in digital and optical technologies such as clouds andbig data. In view of these, JVCKENWOOD has renovated the mid-term business plan up to fiscal year 2015, which was announced on
November 30, 2012, and developed a new mid- to long-term business plan, “Vision 2020,” focusing on fiscal year 2020

Evolution into a company capable of creating customer value ~ Long-term vision for 2020 ~JVCKENWOOD is to take a step forward and go from beinga traditional manufacturing and sales company to being acompany that creates customer value by providing solutions totheir problems through focusing on the following initiatives.

Conventional company

Goal

Business
category

Manufacturer /distributor (maker)

Customer value creator(value creator)

Means ofimplementation

Sale of products /Sales company /Closed innovation

Provision of solutions /Operating company /Open innovation

Idea

Improvement ofexisting products

Provide solutions tocustomers’ issues(create what is missing*)* Includes integration of existing technologies

From a product vendor to a solution provider
JVCKENWOOD will revise existing business
operations focusing on product development
under an operating unit system. Instead,it aims to become a partner for individual
customers, an organization which candeeply understand their problems andprovide individual and specific solutions by
employing management methods led by themarket and customers, and which can also
respond to expansion of B-to-B businesses.

Become a partner who can offer a specific solution to customer’s problem
Sale of products

Provision of solutions

Customer

Customer

Sales

Issue identification

Issue resolution

Solution development(integration of holding technologies and products)

Product development
Technology development

Customization
Systemization
Service

Product development
Technology development

From product sales companies to business operation companies
Direct sales businesses are expanding based on dialogues between
business units at the headquarters and customers in growing
businesses such as those with factory-installed option products inthe automotive sector and system business for industrial wirelesscommunication. In response to such a trend, JVCKENWOOD will

R&D

Production•Development of ”core” product/device by improving technologies•Development of solutions based on customer needs•Optimization of the global supply chain•Solution QCD management

Direct Sales
aproduct sales company
Regional CEO From
to a business operation company

Marketing product planning customer services

CustomerBusiness units at the headquarters(reorganized by customers’ industries )restructure the business units at the headquarters according to thecustomers’ industry and will broaden the roles of individual regional
CEOs and sales companies to be able to provide functions for
product planning and marketing, and support for customer services
in the direct sales businesses.

•Enhance expertise in regions / industries to identify issues•Present specific customer needs and plans to respective business units

to work together in strengthening the local R&D function

From closed innovation to open innovation
For prompt commercialization of the next-generation businesses
currently under development, JVCKENWOOD will use its internal
resources for intensive investments in areas such as digital cockpits
6

and B-to-B broadband wireless, while closely cooperating withoutside partners that include venture companies to accelerate
development of a solution-oriented model.

VISION 2020

Management Policy ~ Toward management that focuses on areas of our strengths ~Conventional approach”VISION 2020”

Business
policyManagement focusedon sales growth andincreasing market share

Management focusedon areas ofour strengths

Principal
management
indicator

Under “Vision 2020” JVCKENWOOD is promoting its businesses,
spotlighting fields where it can capitalize its strengths, by
carrying out performance evaluations and business portfolio
management using return on equity (ROE*1) as a major businessindicator and return on invested capital (ROIC*2) as an internalmanagement indicator.

Business scale(sales, operating profit)

Capital profitability(ROE, ROIC)*1 Return On Equity *2 Return On Invested Capital

Rationale
for taeget
settingYear-on-year growth rare

Macroscopic trend of
the market Competitor
benchmarking

New “Shape of the company” ~Reorganization~
In order to build a new “shape of the company,” the previous four business segments—Car Electronics, Professional Systems, Opticaland Audio, and Software & Entertainment—will be reorganized into three sectors based on customers’ industries—Automotive sector,
as “growth-leading businesses,” and Public Services and Media Services sectors, as “profit-base businesses.”
Conventional(organizationby productbusinesses)

Car Electronics

Professional
SystemEntertainment
Software

Optical & Audio

Automotive Sector

Public Service Sector

Media Service Sector

Consumer Business
Dealler-installed Option Business
Factory-installed Option Business,etc.

Safety Business
Healthcare BusinessMedia BusinessEntertainment Business

OthersThe new“shape of theCompany”(

organization
by customer
industry sectors)

OthersGrowth-leading businesses

Profit-base businesses7

To achieve the high ROE ~Business portfolio~
Business portfolio
As a result, in the long-term, Automotive sector will contribute
approximately half of the profit, supported by Public Services
and Media Services sectors, thereby transforming into abusiness structure which will enable JVCKENWOOD to realize
significant profit growth.

Stable profit generated by “profit-base businesses,” suchas Public Services and Media Services sectors, will support
investments for growth in “growth-leading businesses,”
Automotive sector.

[ ] Index the FY2014 as ”1”

FYE 3/ ’15

Trend in sales composition(by customer industry sector)

28%

13%

29% [1]FYE 3/ ’18
FYE 3/ ’21

20% Cosumer/
Dealer

40% Factory*FYE 3/ ’15

20% [app1]

1

20% [app1][app2]

Automotive [Consume products/Dealer-installed Option]

Trend in operating profit
composition

30% [1][1]

Automotive [Factory-installed option]

30% [1]

Public Service

50% [1]

Media Service

20% [1]FYE 3/ ’18(by customer industry sector)
FYE 3/ ’21

45% [app5]

35% [app2]
Automotive

20% [app3]
Public Service

Media Service

Mid-term targets for fiscal year 2017 (FYE 3/’18)
Consolidated operating income is to achieve 14 billion yen.
ROE ratio is to achieve 10%.
Aim to achieve this figure by turning businesses necessaryt o i m p ro v e t h e i r p ro f i t a b i l i t y i n t o p ro f i t a b l e a n dcommercializing next-generation businesses, supported by“profit-base businesses.”

Sales (left axis, billion yen)
Operating income (right axis, billions of yen)
316.3
285.0

300

30

200

20
14.0 (Target)

100
4.6

10

6.8

0

0
FYE 3 / ’14

FYE 3 / ’15

FYE 3 / ’15

ROE ∆10.9%

7.7%

10% (Target)

Investment and financial strategy
Investment will be overweighed in the Automotive sector as a“growth-leading business.” Also an optimal capital structure will
be pursued to improve capital profitability, keeping in mind theneed for a balance between reducing net interest-bearing debt
and investing in “growth-leading businesses.” For dividends,

8

a target dividend payout ratio on a consolidated basis will be
30%, considering the balance between a stable shareholder
return and the need to ensure investment funds for “growthleading businesses.”VISION 2020

Mid-term strategy toward fiscal year 2017 ~Fundamental policies for each market and business~
Market strategy
Looking toward fiscal year 2017, based on the abovementioned long-term vision and management policy,
JVCKENWOOD will re-focus on developed countries and pursue
an aggressive approach to growth in emerging economies.
It will do this because it recognizes that there is still a lot ofroom to create customer value in both developed countries
and emerging economies. At the same time, it will integrate its
strengths in order to create new demand in next-generation
business areas as a further step in the business strategy.

Regarding markets in developed countries, JVCKENWOOD
will rebuild the industry structure as a solution provider of theautomotive sector and develop potential demand in PublicServices and Media Services sectors.
Regarding markets in emerging economies, JVCKENWOOD
aims to break away from low-price competition and continue
to develop markets in collaboration with customers, basedon firm relationships with them that have been established indeveloped countries.

Business strategy
Aim to achieve this figure by turning businesses necessary to
improve their profitability and commercializing next-generation
businesses, supported by “profit-base businesses.”
JVCKENWOOD considers Automotive sector as one containing“growth-leading businesses,” and will work to expand market
shares of consumer business and accelerate growth in the
dealer-installed option business. Regarding Public Services
and Media Services sectors as “profit-leading businesses,”
JVCKENWOOD will get involved in the total professional
radio system business centering on professional digital radio
equipment. In addition, JVCKENWOOD will make a fullscale entry into the pathology market in healthcare area andthe next-generation content creation (professional camera)

and imaging device business, expand into the entertainment
business for professional purposes, and thus diversify its profitgeneration model.
At the same time, JVCKENWOOD needs to manage businesses
necessary to improve their profitability, such as radio systembusiness in the US, factory-installed option business, andimaging device business. It is also making an advance investmentin the next-generation businesses, such as CAROPTRONICS
systems, professional broadband radio system, and healthcare
business. JVCKENWOOD aims to achieve the mid-term target
by turning the businesses into profitable and commercializing
the next-generation businesses.

CAROPTRONICS Business

Next generation professional radio system

Future prospects of Digital Cockpit Systems
Digital Mirror
Head-Up Displays +Digital Instrument Cluster Meter Display
Conventional product(Billions of yen)

Traditional voice communication(Narrowband)

1,200
1,000
800
600
400
200

3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 3/’20 3/’21 3/’22*Source In-company investigation in reference to Techno Systems
Research Co., Ltd. and Fuji Chimera Research Institute, Inc.

0transmission of video and image(Broadband)
IP Network

Cloud[CES2015]

Command system
Show car(based on McLaren
650S Spider)

Firefighter

Digital Cockpit Systems

9

Business Highlights
Creation of solutions in the Automotive Sector: Digital Cockpit System
From Car Electronics to CAROPTRONICS*1At JVCKENWOOD, we have created a new business area called
CAROPTRONICS, which combines our technological advantagesin Car Electronics and Optronics. It enjoys a major share of the
Car Electronics market in Europe and the United States, with
its car navigation, car audio, and in-car camera products, etc.
JVCKENWOOD has led the Optronics market for a long timewith its video cameras, while its high-definition projectors arealso highly evaluated in the professional market. In July 2013,
we set up the Commercialization Task Force for i-ADAS* 2.
Through this Task Force, JVCKENWOOD provides a consistent
DiCI (Digital Cluster Information) system that processes
incoming information for transmission to drivers, including
sensing devices such as cameras and sensors, ECUs (electronic
control units) that integrate and control the operation ofsensing devices, and driver interfaces such as high-definition
head-up displays (HUDs) that process information to drivers tofacilitate driver safety and safe driving, electronic mirrors andelectronic meters. JVCKENWOOD has positioned DiCI systems
as its next-generation growth area, and is making proposals toautomakers and parts makers and conducting joint technicaldevelopment in this area.
*1 Named by JVCKENWOOD for in-car devices using opto-electronics
technologies.
*2 i-ADAS is a trademark of JVCKENWOOD and means an innovative
Advanced Driver Assistance System.

Car Electronics

Navigation System

Optronics

In-car
VGA camera

LCOS projector

Camcorder

CAROPTRONICS
Head-up display (HUD)Electronic dashboard

Displays driving information (e.g. route
guidance, driving speed, and inter-vehicle
distance) on the windshield of a vehicle.
HUD helps you navigate more safely
because you do not have to move youreyes away from the road to a car
navigation screen.

Easy to read, intuitive andflexible display.

Electronic mirror
Replaces conventional side door mirrors
and rear view mirrors. Displays images
captured by in-car cameras. Reduces blind
spots using multiple in-car cameras. Infrared
cameras offer night vision capabilities.
Contributes to pedestrian and driver safety.

In-car HD camera

Showcased a show car equipped with advanced Digital Cockpit System at electronics shows in
Europe and the United States
JVCKENWOOD showcased a concept vehicle with Digital
Cockpit System specially designed for McLaren 650S Spider
luxury sports car in collaboration with McLaren Automotivein the U.K. at 2015 International CES, held in Las Vegas, U.S.
in January 2015 and IFA2015, held in Berlin, Germany in
September 2015. The show car enabled visitors to experience
our critical technologies in the actual driver’s seat, such as highdefinition HUD, electronic mirrors and electronic meters andcamera system that provides clear visibility of 360°surrounding
the vehicle from a bird’s eye view.

With the completion of the concept model of the Digital
Cockpit System installed in the McLaren 650S Spider,commercialization of innovative driver assistance systems hascome closer to reality through a combination of this concept
model and JVCKENWOOD’s Infotainment Systems, including
car navigation systems for which JVCKENWOOD is famous
around the world. With the diffusion of these innovative driverassistance systems among road vehicles manufactured byvarious automakers, JVCKENWOOD aims to achieve a motorizedsociety characterized by safety and peace of mind.

Future initiatives
The market for CAROPTRONICS devices is forecast to growto exceed 1 trillion yen in 2020. In this market, JVCKENWOOD
will fully leverage its strengths as a specialized manufacturer
that owns various core technologies comprehensively and seek

10

further promotion of development and early commercializationof such technologies to build its third pillar of CAROPTRONICS
products following car audio and car navigation systems.

BUSINESS HIGHLIGHTS

Developing solutions for the Public Service Sector : Professional digital radio systems
Shifting from a terminal business to a system business
Further, JVCKENWOOD is accelerating business expansion
by increasing sales of communication systems that use the
network system offered by Zetron, Inc., which became its
subsidiary in May 2007.
New business developmentin the Public Safety sector
Utilization of acquired subsidiaries
System businessin North America
Business range

By capturing the market trend from analogue to digital,
JVCKENWOOD is developing and selling professional digitalradio devices and systems compatible with various digitalradio standards in the world. For the business and industry
market where customers mainly require small and mediumsized digital radio systems, we launched the NEXEDGE® seriesof professional digital radio systems and achieved a goodtrack record and high evaluation. In addition, we launched
new network solutions at the end of 2014 and advanced the
NEXEDGE® network system significantly.
The public safety segment accounts for the largest portionof JVCKENWOOD’s sales in North America, the world’s largest
market for the communication systems business. Here, we
proposed digital radio devices compatible with P25 protocol
for the U.S. public safety market of EF Johnson Technologies,
Inc., which became our subsidiary in March 2014, as well as
infrastructure systems including base stations as total systems.
In addition, we released the NX-5000 series that feature
NEXEDGE® and P25 in a single platform in September 2014.
With these, we are strengthening our presence in the public
safety market.

911 system business*1,
video management system, etc.

Broadband/
IP communications business(long-term)

Expansion oftargeted market
GlobalNXDN, P25

P25 Protocol, the largest
standard in the communications
market, is likely to expand
constantly *2
Utilization of acquired
subsidiaries
System businessin North America

Device businessin North America

NXDN, P25 basis

NXDN,P25,Analog

Second in market share next to Motorola
Approx. 15% of operating margin
Development of solutions*1 Annual growth rate: 6% (from 2014 to 2018)*2 Communications system for emergency communication with police, fire department and local government

Changing needs in professional land mobile radio systems
With demand for faster and more accurate transmissionof information, there has been an increasing need for aprofessional broadband radio system in recent years. This isbecause such a system enables the transmission of images andvideo through 3G or 4G (LTE) lines of broadband connections,replacing conventional narrowband devices centered on thosefor voice communications.

With a professional broadband radio system, firefighters at afire department will become able to promptly send images of afire and speed up firefighting activities. Meanwhile, emergency
medical staff at an emergency site will be able to send imagesof a patient’s condition and biological information to a hospitalin advance to facilitate smooth acceptance of patients. The
system will also be able to help police accurately transmit
information on criminals being tracked and on license plates ofvehicles being monitored.

JVCKENWOOD’s solid performance in broadband systems
In the development of broadband professional radio systems,
JVCKENWOOD concluded a business alliance contract
regarding joint development with AIRBUS DEFENCE AND
SPACE (headquartered in France) of the AIRBUS Group, a major
aerospace company, and launched the Broadband Taskforce inAugust 2013, in order to promote product development thatmeets digital radio stanndards.

JVCKENWOOD will also work to develop the IP communications
systems market, mainly targeting taxis, buses and disasterprevention radio systems, with an eye on expanding the market
for IP communication systems that use commercial broadband(LTE) connections.

11Outline of Business

Automotive Sector

Business sales ratio

42%

Consumer Business

Display Audio Systems for
global market "except JPN"

"Saisoku"AV Navigation for Japan

Audio receivers

Public Service Sector

Dashbord Camera

Business sales ratio

Custom Fit Speakers

30%

Safety Business

Digital Radio forprofessional use

VoIP Radio Dispatch
SystemHealthcare BusinessAmateur Radio

Medical Display Monitor
Solutions
Security Video Camera
License-Free Transceivers

Digital WirelessMichrophone System

12

Emergency Broadcasting Equipments

OUTLINE OF BUSINESS

Dealler-installed Option Business

Factory-installed Option Business

Head-Up Display

Digital Mirror System

Memory Navigation Systems
for Automobile Dealers

Factory-installed Option Business

CD/DVD
Mechanisms
ms

Digital Instrument Cluster Display

Speakers

Media Service Sector

Car Optronics products *Images

Business sales ratio

26%

Media BusinessStudio Camera System

Southern All StarsSMAP

Leo Ieiri

Gen Hoshino

4K Super 35mm camcorder

All-weather HD Camcorder

Headphones

Entertainment Business"D-ILA" 8K Projector for
professional use

Sakurako Ohara LOVE PSYCHEDELICO

13

Automotive Sector

The Automotive Sector, centering on
car navigation systems and car audio
systems, is comprised of the Consumer Business,in which we provide products to customers via volumeretailers and distributors, the Dealer-installed Option Business,in which we provide products via automobile dealers, and theFactory-installed Option Business, in which our products are installed in
automobiles and distributed by automobile manufacturers.

Consumer Business

JPN: Strengthen "Saisoku-NAVI" and "Dashbord Camera" Global: "DVD Entertainment System" for smartphone adopted

In the Consumer Business, the JVCKENWOOD Group has
gained an industry-leading market share both in car navigation
systems and car audio systems in Europe and the U.S. bylaunching marketing and sales strategies that leverage the “JVC”
and “KENWOOD” brands with different characteristics. In theJapanese market, where the focus of demand is on car navigation
systems unlike in overseas markets, the JVCKENWOOD Group
has successfully expanded both its sales volume and market
share despite the declining market. This is owing to the hit of
the Saisoku-Navi series of car navigation systems developed byintegrating the technologies of the two companies, for which theGroup has released the first high-resolution audio model in theindustry. In addition, dashbord camera, which we developed byleveraging our camera technology and launched in 2014, havereceived a very high evaluation.

In the Japanese market, the JVCKENWOO Group will continue
to seek sales expansion and improve the cost competitivenessby further enhancing the product appeal of the Saisoku-Naviseries and stepping up efforts for cost reduction. In addition,
we will launch products that accommodate changes in market
needs, such as car-mounted cameras. In overseas markets,
where demand for car audio systems, our key products,
is expected to continue declining gradually, we will work
to enhance the lineup and expand sales of smartphonecompatible Apple CarPlay products and Android Auto-enabled
DVD Entertainment system. Furthermore, we will seek toexpand into emerging markets.

Dealler-installed Option Business
Winning new order for large-lot projects by leveraging its track record in the consumer businessOur customers in the Dealer-installed Option Business areautomobile manufacturers and Tier 1 suppliers that provide parts
to automobile manufacturers. In relation to them, JVCKENWOOD
is seeking increases in new order intake of car navigation systems
and DVD Entertainment systems by leveraging its strength in the
consumer market and cooperating with partner companies. In
the Japanese market, notably, we are winning new orders forlarge-lot projects thanks to the high evaluation of the SaisokuNavi series, which we deploy in the Consumer Business.

14

JVCKENWOOD will continue to aim at winning new orders forlarge-lot projects in the Japanese market by leveraging its trackrecord in the Consumer Business and expand sales in overseas
markets, centering on Asia.
We will also reinforce the internal system in order to meetrequirements, such as performance, quality and cost, of ourcustomer automobile manufacturers and Tier 1 suppliers.

AUTOMOTIVE SECTOR

Factory-installed Option Business

Ready for growth by acqusition of ASK Concentrate commercialization of CAROPTRONICS

In the Factory-installed Option Business, the JVCKENWOOD
Group is working on developing, mass producing, andacquiring new orders for, dedicated design infotainment, carnavigation systems and DVD Entertainment systems. In CD/DVD
mechanisms for car AV equipment, JVCKENWOOD is striving
to further expand the mass production of newly developed
optical pickups and win new customers through a collaboration
with Shinwa International Holdings Limited, which became its
subsidiary in June 2013. In addition, we will seek to expandand strengthen business in emerging markets, notably in
China and Asian markets that have great potential for growth.
Furthermore, we will leverage the strong partnerships withleading automotive manufacturers and extensive distribution
channels owned mainly in Europe by ASK Industries, whichbecame the Group’s subsidiary in April 2015, in order to expand
factory-installed option business by offering an integrated
system combining both companies’ products.

The JVCKENWOOD Group will step up the above-mentioned
initiatives in the future. In addition, we will further focus
efforts on the development of CAROPTRONICS devices (digital
cockpit systems) that have the highest growth potential, suchas car-mounted cameras, high-brilliance head-up displays,
e-meters and e-mirrors. JVCKENWOOD launched a task
force for commercializing its innovative Advanced Driver
Assistance System (i-ADAS) in July 2013 and has since been
advancing the development of CAROPTRONICS devices.
Various key technologies essential for their development,such as technologies in car electronics, audio, image/opticaland sensing, were developed by combining the elemental
technologies cultivated by the former Victor Company ofJapan and the former KENWOOD over the years. There are
only a limited number of specialized manufacturers, including
JVCKENWOOD, which have those technologies in their groups,
and we will take full advantage of this merit and further
promote the development of CAROPTRONICS devices toexpand the Factory-installed Option Business.

15

Public Service Sector

Safety BusinessCommunication: Aim to total solution business Security Camera: ”Safety” and ”Security” with advanced imaging technology

The Communications System Business boasts the world’s
second largest market share in its mainstay area of land
mobile radio equipment. The business achieved this share by
combining radio technologies, which have been cultivated overmany years since the era of amateur radio equipment, with
cutting-edge digital and network technologies. Featuring ahigh overseas sales ratio and strong profitability, this businesssupplies highly reliable professional radio devices and systems
to the public safety sector (police and fire departments), thepublic service sector (electricity, water, and gas), and the private
sector (railways, buses, hotels, and plants) around the world.
Under Vision 2020, its mid- to long-term business plan,
JVCKENWOOD positions the Professional Communications
Systems Business as its biggest source of operating profit andaims to achieve profitable and stable growth. It will realize thisby stepping up its efforts notably in the public safety market
that has prospects for continuous expansion of the market size.
In addition, JVCKENWOOD will aim to provide total solutionsof communication systems centering on digital land mobile
radio equipment conforming to the NXDN standard and Project
25 (P25), a digital radio format for the public safety market
in North America, through cooperation with Zetron, Inc. and
EF Johnson Technologies, Inc., its communications system
subsidiaries in the U.S.

16

The Professional Systems Business provides highly reliable,
professional-use video and audio equipment, developed
based on advanced image shooting, display, and acoustic
technologies, to such markets as electrical facilities, educationand the public sector, private corporations and amusement
facilities. While boasting high market shares in the domestic
electrical and amusement facility markets, JVCKENWOOD’s
security cameras are highly rated for their features. These
include sharp image quality at night, ease of operability andoutdoor installation as security cameras that are deemed to beamong the most effective in preventing crimes and ensuring
people remain safe and secure.
To expand this Business, we will position IP security cameras
as core products to strengthen the Solution Business including
system design and implementation, and integrate strategic
products for emerging markets, radio communication
technologies and video technologies, while ensuring enhanced
compatibility with smartphones, etc.

PUBLIC SERVICE SECTOR

The Public Service Sector consists of the Safety Business and the Healthcare Business.
The Safety Business is comprised of the Communications Systems Business, which deals
with land mobile radio systems, license-free transceivers and amateur radio sets; and theProfessional Systems Business, which handles security camera systems and professional
audio systems.
The Healthcare Business primarily handles medical display monitor solutions.

Healthcare Business

Aim Into the pathology market with consistent system from the camera to the monitor

With regard to the Healthcare Business, we are putting
forward medical monitor display solutions by focusing on thefive-million-pixel color display for mammography, developed by
combining the radiographic medical image display technologies
and high-definition color image display technologies, as well as
image wireless intercoms, security systems, and other proposals
for in-hospital communication.

Task Force

We will further work on the commercialization of productsin the remote medical field by leveraging the elemental
technologies of imaging, cameras and radios that JVCKENWOOD
has developed. In addition, we will strive to integrate thetechnologies possessed by JVCKENWOOD, with the aim ofmaking a full-scale entry into the pathology market by offering
an integrated system from cameras to monitors and achieve atransition from an equipment business to solution business.

Aim to commercialize “Broadband ” and ”Medical Camera”

JVCKENWOOD launched a task force named Broadband
Task Force to focus on stepping up the activities toward thedevelopment and commercialization of wireless broadband
systems in August 2013. Under the task force, we havebeen promoting the development and commercializationof professional multimedia radio systems, including moving
images and large-capacity data communications services,such as systems for firefighting, medical treatment andemergencies. We have done so by accelerating initiatives for thedevelopment and commercialization of public safety wirelessbroadband systems, jointly with Airbus Defence and Space Inc.
(headquartered in France), with which we formed an alliance inJanuary 2014.

Push to Talk over Cellular (PoC), which uses the IP network of
cellular phones, has recently been growing rapidly all aroundthe world, and JVCKENWOOD will actively promote the
PoC business. Under the Medical Camera Development Task
Force, launched in April 2015 with the aim of promoting thecommercialization of next-generation businesses, we will work
toward the development of medical cameras, such as 8K/4K
endoscope systems and surgical microscope systems.

17Media Service Sector

Media Business
Professional Camera: high-value-added products to maintain a high presence Imaging: pioneering and worked high-definition "8K / 4K" technology

In the professional camera business, which handles products
such as professional video cameras. JVCKENWOOD has
succeeded in maintaining a strong presence in major markets
around the world. We have achieved this by developing highvalue-added products that meet the needs of professionaland niche markets, including camcorders compatible withthe 4K/2K imaging infrastructure and hybrid cameras. Drasticchanges in market needs are taking place following thediversification of the broadcasting form, starting with the riseof Internet broadcasting, and advancement of high-quality
video technologies, such as 8K/4K imaging technologies. Amidsuch changes, JVCKENWOOD is promoting the transformation
to a solution business that has both systemization andcustomization functions, in addition to providing equipment, inorder to flexibly respond to the changing market needs.
In the AV Accessory Business, which handles products such as
headphones, JVCKENWOOD will strive to improve its presencein the principal markets around the world by strengthening thelineup of high-value-added products, such as high-resolution
audio model that leverage the Group’s unique advanced
acoustic technologies, and special-purpose products, such as
headphones for sports and kids, and by providing new productsthat meet a variety of needs.

18

The Imaging Business deals with projectors and imaging
devices. Here, we have made the most of our advanced video,
cutting-edge image processing and 3D technologies to develop
and sell full-fledged home projectors based on our unique D-ILA
device, as well as professional projectors for wide-ranging uses inwhich super-high-resolution is required, including planetariums,
museums, flight simulators and CAD design and the projector
corresponding to the HDR (high dynamic range) required by
the optical analysis and design, and educational and medical
applications. In addition to 3D projectors, we are working on
expanding the next-generation of image devices such as HUD bylaunching the full-scale production of Pico devices, and releasing
projectors compatible with 4K/2K and 8K/4K in order to expand
our businesses in global markets. From a medium- to longterm viewpoint, we will aim to achieve full-scale deliveries in theimaging device business through cooperation with AltaSense,
Inc., a subsidiary handling CMOS sensors.

MEDIA SERVICE SECTOR

The Media Services Sector consists of the Media Business, which deals with video cameras, headphones, projectors and imaging devices,and the Entertainment Business, which handles the software business and the OEM business. We will accelerate the transformation of
our consumer technologies to development and production of products for professional, semi-professional and industrial use, andexpand the sales channels and improve our market presence in order to transform the drivers of growth from consumer businesses toprofessional systems.

Entertainment Business

Aim to “Comprehensive entertainment business” appeal music and an artist

The Entertainment Business consists of the Content Business,
which has as its core Victor Entertainment, Corp. and the OEM
Business that specializes mainly in the production of packaged
software such as CDs, DVDs, and Blu-ray.
Victor Entertainment is the second-oldest record company
in Japan and has continued to deliver excitement to people
through artists and music for over 85 years.
The Content Business is endeavoring to enhance its coreMusic Business in two ways: by responding to changes in theentertainment industry environment, such as the diversificationof user preferences and the popularization of the Internet andmobile phone distribution as a result of improved infrastructure;and by making enterprising investments in talented newartists to discover and foster such artists and promote apartnership strategy to create hits. Also, in anticipation of the
popularization of the online music distribution market featuringhigh sound quality, we set up a high-resolution audio online
music distribution site in February 2014. Further, we will aim to
make an entry into new music distribution services, such as flatrate services. The OEM Business fully supports customers andmeets their requests, from the production of content to thecreation of package media.

In December 2012, JVCKENWOOD entered the Space Sound
Production Business on a full-scale basis by launching its
KooNe™ Space Sound Design Solution, which uses a highresolution audio sound system. We have introduced the system
to many locations, such as corporate offices, commercial andentertainment facilities, libraries, and residential facilities. We
will continue to push forward with initiatives with corporations
and organizations that seek the creation of a functional spacethat matches the respective purposes, including healing,spatial presentations and the improvement of productivityof corporations, while strengthening cooperation with the
JVCKENWOOD Group companies.
JVCKENWOOD will aim to make a transition to the total
entertainment business, including the management business,
live concert/event business, and merchandising business,by connecting the appeals of artists and music to various
businesses in a range of fields. In addition, we will enhancecomprehensive capabilities of the Group through expansion of
new B to B domains by making the most of music and video
technologies and know-how.

19

Global Brand Strategy
The JVCKENWOOD Group has many businesses and product brands under JVCKENWOOD, its Corporate Brand. We have beenpromoting the global brand strategy of maximizing the corporate value of the entire Group by clarifying the trust and value
accumulated in each product brand and making the most of its strengths.

Corporate Brand
JVCKENWOOD is the Corporate Brand of the parent company JVCKENWOOD Corporation and JVCKENWOOD Group.

The JVCKENWOOD Group aims to achieve profitable growth as a global manufacturer creating
excitement and peace of mind for customers and become a company widely trusted by society.

Business/product brand portfolio
The following are JVCKENWOOD’s business/product brands that have strengths in each sector.

Flagship brand by carrying out Factoryinstalled Option Business in theautomotive sector and Solution Businessin the Professional Systems Business.

Conducts business and provides productsthat maximize on its strengths in video
technologies, including video cameras,
projectors and other fields.

Conducts business and provides products
such as car navigation systems andProfessional Communications Systems
that maximize on its strengths in
Communications and Telematics

Provides medical image displays in Healthcare Business employing high-definition display technology.
Delivers wireless systems in a wide range of fields including police, firefighters, emergency medical services
and provides professional radio systems specialized to the P25 standard.
Provides a broad range of business in professional radio communications, command-and-control systems
and radio communications network systems.
Carries out comprehensive entertainment businesses, ranging from music/video production to event hosting.
Development and design of high-quality CMOS image sensor that expect to be incorporated in professional
video cameras and automotive cameras.
Designs, produces and distributes speakers and amps as well as antenna systems for automobile manufacturers.
Involved in the production of in-car AV mechanisms and equipment, components (decorative plastic parts)and other products, and contract manufacturing services.

20

GLOBAL BRAND STRATEGY

Global brand presence through motorsports
Motorsports events are dramatic ones in which cutting-edge technologies are mobilized to enable racing teams to push their limits inheated competition.
In sympathy with the concept of creating excitement through the use of technologies, JVCKENWOOD conducts sponsorship activities
for motorsports to boost brand exposure and visibility based on its corporate vision “Creating excitement and peace of mind for thepeople of the world”.

KENWOOD provides the radio system to McLaren-Honda F1 Team as an Official Supplier.
Having signed an official supplier contract with McLarenin 1991, KENWOOD has been supplying wireless radio
communication systems and providing extensive technicalsupport through its professional staff. The partnership is thelongest McLaren has had with a Japanese company.
The partnership between KENWOOD and the McLaren-Honda
F1 Team is the relation of colleagues fighting together for
victory in the battlefields of a Grand Prix, beyond the relationof Racing team and Sponsor.
The U.S. Grand Prix held in Texas, U.S.A. on November 2,
2014 was McLaren’s 400th race since
KENWOOD first provided radio systems
to the Team more than 20 years ago.

JVCKENWOOD is an Official Series Partner of WTCC.
WTCC (World Touring Car Championship) is a world championshipof touring cars (remodeled stock cars) sanctioned by the FIA(Fédération Internationale de l’Automobile).
JVCKENWOOD is aiming to increase the visibility of
JVCKENWOOD brand by supporting the global championshipthat races worldwide.

21

Corporate Social Responsibility (CSR)
About Our Environmental Activities
Environmental Policies
To preserve the global environment and resources and prevent
pollution, we will manage our business activities, our productdevelopment, and our services by making ongoing improvementswith a full awareness of our environmental impact.

1

CO2 reduction

3

Manage chemicals that affect the world’s environmentand biosphere, continue to reduce their consumption, andswitch to eco-safe materials.

4

Resource usage reduction
Use the limited global resources effectively to create asustainable society by reducing the resources we use
within a framework of 3R* activities and progressively
using eco-friendly materials.
*3R: Reduce, Reuse, Recycle

Symbiosis with the natural environment
Recognize the effect on biodiversity of all businessactivities, product development and services andcomprehensively reduce our environmental impact inharmony with the natural environment.

Prevent global warming by promoting the reduction of
CO2 emissions throughout the product lifecycle, including
our business activities, by developing technologies andproducts that reduce environmental impact.

2

Chemical usage reduction

5Compliance with environmental laws
Comply with environmental legislation and otherrequirements with which we agree.

6

Training for employee
Educate employees on the environment to cultivate greater
environmental awareness.

Dragonfly Pond
We jointly work with the Tombo Forum, an environmental
protection group conducting activities mainly in the Keihin
Waterfront Area in Yokohama City, to regularly cut waterweedin the Dragonfly Pond on the premises of JVC KENWOOD Head
Office & Yokohama Business Center. The aim is to improvethe environment and conserve the ecosystem of the pond. In
addition, we are making a contribution to research on changes
in the natural environment of surrounding areas throughcooperation with inhabitation research.
We check the ecological distribution of dragonflies twice:at their aquatic larvae stage and at their adult stage.
Checking the findings against the results of inhabitation
research in the surrounding areas helps identify the extent
of habitat of dragonflies.
As part of biological research on dragonflies, we check theirtravel range by conducting stationary observation of dragonflies
whose wings are marked with identification numbers. We also
check the arrival of rare species during the stationary observation.

22

Why do research on dragonflies?
Dragonflies grow underwater in their larval stage and live on
the land in the adult stage. Therefore, dragonflies are affectedby both the aquatic environment and terrestrial environment,
which makes their presence a comprehensive barometer of thenatural environment.

Corporate Social Responsibility (CSR)

Artwork class in the forest
We held a summer artwork class at "Laforet Shuzenji" incollaboration with Mori Trust Hotels & Resorts Co., Ltd. Afterlearning about the importance of forests and trees, students
formed their own images of forests while listening to forest
sounds from “Forest Notes” (a wireless active speaker). Thenthey drew pictures of the forest, and created their own art
frames by mainly using materials available in the woods.
Everyone was able to get a hands-on experience of theblessings of the forest, while getting in touch with the forest,
feeling its scent and listening to its sounds.

Environment-friendly camcorders — reducing the volume of packing materials by 36% compared to before
Adopting enhanced features, such as dust proofing, drip
proofing, resistance to impact and adaptation to a cold
climate, and using a built-in battery to reduce the number ofaccessories, we have been able to cut down the volume ofpacking materials by more than 30%.

Volume ofpacking materials
down by36%

H 14.0 × W 19.0 × D 9.5( 2,527 cm3 in volume )H 13.5 × W 15.0 × D 8.0( 1,620 cm3 in volume )Energy saving of in-vehicle communications systems and supporting idle reduction
NX-5700/5800
VHF/UHF DIGITAL TRANSCEIVER

Reduction of dark current by 92%(compared to JVCKENWOOD’s previous models)Supporting idle reduction (avoiding temporary
blackout at the start of engine)
Addition of many control functions for
power failure

23

Together with employees
Our Company is making efforts to create workplaces that are safe and pleasant, and to provide each employee with support in their
growth through education and training systems.

Supporting career and skill development
Our Company has systematized and implemented training
to improve the skills employees need to perform their roles,
and given them training so they can utilize those skills within
the organization.
We also implement a career development program to help
employees realize their career vision that has been formed
based on their background and experience.
The Career Development Program is comprised of thefollowing: 1) career interview, 2) career design training and3) career development support.

CDP (Career Development Program)All employees

1

Employees at milestone years of employment (every five years)

2

3

Career interview
Employees meet with their superiors once a year to discuss theircareer vision (what they want to be) and career development
themes to integrate individual motivations and company
expectations. This is the most fundamental of the three pillars.

Career design training
In these training sessions, employees review their current work
practices while planning what they want to attain in the future(career vision). By considering the actions necessary to attaintheir goals, the employees gain awareness of various points.
Further, this is an opportunity for participants to consider in
a comprehensive manner the balance between their workand private life, such as the personal development needed toreach future goals and connections with family and the local
community, while discussing their career visions.

Third-year training

Career development support system*Understanding of the career concept

Career design training for
30-year-old employees

Careerinterview

Career design training for
35-year-old employees(held oncea year)

Career design training for
40-year-old employees[Open application system]

Career design training for
45-year-old employees

Careerdevelopment
support
Only those who
took training
courses are
qualified toapply.

This system provides employees with support in terms of bothtime and money to take on further challenges by applying what
they have learned from their new self-awareness. This system
is used by employees for various purposes to achieve theircareer visions, such as by going on distance learning courses,
participating in outside
seminars, and obtaining
qualifications. It is effective
not only for personal
development but also forinternal revitalization.

[Open application system]

Career design training for
53-year-old employees

Multi-level training
Our Company has also established a training system for
fostering diversified human resources by providing multilevel training, such as “training of promoted employees” foremployees promoted to a higher job grade and “training of
newly appointed executives” for employees who have beenpromoted to management-level positions. We also encouragethem to participate in external seminars and business schools.
By providing such a training system, we are working to meetthe employees’ aspirations for career growth.

24

Corporate Social Responsibility (CSR)

Helping support harmony between work and family life
Our Company is steadily enhancing its efforts to support
employees to have a good balance between their work andfamily life (work-life balance: WLB), with an aim to accept thediverse lifestyles and ways of working of employees.

Supporting childcare and nursing
We have established a variety of ways to support ouremployees both at work and at various occasions in their lives,
for example in childcare and nursing,. The coverage period
applicable to the childcare-related support system is “until thefirst March 31 after the child reaches 12 years of age” which isuntil the graduation from elementary school.

Reduction in overtime work
We have continuously been making efforts to reduce overtime
work every day as a way to promote WLB.
Specifically, we are conducting activities to encourage our
employees to work with an awareness of time under their own
initiatives. For example, each business center has designated
one day a week as its own “no overtime day.” On this day,we urge employees to go home on time via in-company
broadcasting, asking them to adjust work schedules so they cango home at the end of the regular work hours. We are posting
the performance of each department’s efforts on our in-houseportal site to raise awareness about overtime work.
As a result of these activities, the number of overtime work
hours per person has steadily been decreasing from 24.8 hours
as a monthly average in FY2011 to 18.5 hours in FY2012 and11.0 hours in FY2013. Although overtime work hours perperson increased slightly to 17.1 hours in FY2014, the total
actual working hours remained below 2,000 hours for three
years in a row from FY2012, indicating that our efforts haveborne fruit constantly.

Encouraging employees to take annual holidays

Name

Explanation
Employees are entitled to take leave untilChildcare leave the end of April following the child's firstbirthday or the end of the month inwhich the child reaches 18 months

Status of usageof each system
in 2014

Used by
12 people

Employees are entitled to reduce work

Currently
time up to two hours per day, separately
Reducedworking hours as provided by law, for childrearing until being used
for childcare the first March 31 after the child reaches by 28 people
12 years of age.

Pregnancy
leave forspouses

Employees are entitled to take threedays’ leave to stay with their spouses
during delivery.

59 people
overall,150
days taken

Employees are entitled to take five days’
leave per year to look after sick/injured

Sick/injured children (10 days if there are two orchildcare leave more children) until the first March 31
after the child reaches 12 years of age.

Employees are entitled to take acumulative maximum of one year of
Nursing leave leave per family member who requires
nursing care.

Used byone person

Employees are entitled to reduce work
Reducedworking hours time by up to two hours per day for a
for nursing cumulative total of one year, combinedwith nursing leave.

Employees are entitled to take five days’

Nursing days leave to look after a family member who
requires nursing care (10 days if there
off
are two or more such family members).

Employees will be exempt from overtime
work of more than 24 hours per month
Limitation of or 150 hours per year and from late-nightwork if so requested by employees
overtime work raising children who have not reachedand night work the first March 31 after becoming 12
years of age or those taking care offamily members who require nursing care.

System to
Employees who left the company because
register retirees of pregnancy, childbirth, childcare, nursing
care, or a spouse being transferred can beforreemployment registered for reemployment.

3 peoplehaveregistered

In addition to the activities to reduce overtime work, we areencouraging employees to use their annual holidays. Promotionof the use of annual holidays among employees is the theme weare working on jointly with the labor unions. We are conducting
activities, such as setting targets for a number of annual
holidays to be taken during a proposed month for individual
workplaces. Last year, we conducted a survey on the taking ofannual holidays and target-setting more elaborately to ensurethat all employees can take their annual holidays appropriately.
These activities have been effective in increasing the numberof annual holidays taken by employees. The total paid leave
taken per year increased from 13.9 days (the rate of taking paid
leave: 60%) in FY2010 to 16.7 days (the rate of taking paid
leave: 67%) in FY2014.

25

Corporate Social Responsibility (CSR)

Health and Safety
Helping people to return to work after long absences

Measures to prevent overwork

We have continuously been providing seminars on mental
health issues so that all of us are aware of and understand thereality of mental health issues, so we can treat our colleagues
with thoughtfulness and prevent such issues in the workplace.
We have also established a return-to-work support system toallow people to return to work without stress when returning
to the job after long absences.
This system is, in principle, a three-month program that
introduces work responsibilities on a trial basis, increasing theworkload and working time in stages, to a state of normal
full-time work after a return from a long absence or period of
not working.
When employees are returning to full-time work after finishing
the trial work stage, a return-to-work evaluation meetingis held with those people involved, such as the industrial
physician, medical staff, and supervisors, where everyone
involved confirms items to be considered and the support
system when employees return to work.

Long working hours lead to overwork, and this is an importantsocial problem that could lead to health problems and evendeath from overwork.
We are striving to prevent damage to the health of people
and reduce long working hours. We do this by having workers
doing long hours of overtime receive face-to-face guidance anda medical interview by industrial physicians.
Further, we have established days when people leave workon time, and the Safety and Health Committee is working to
reduce work hours as part of our proactive efforts.

Industrial physician having aninterview with a worker doing longhours of overtime

Health and safety at work

Training on mental health issues

The JVCKENWOOD Group is conducting activities to promotehealth and safety at work, led by the Safety and HealthCommittee held monthly, based on the idea of “zero industrial
accidents” and “ensuring health and safety of workers”.
We are focusing our efforts on safety and health measures
to establish a corporate culture that gives top priority to thehealth and safety of our employees. Regarding safety, we aim
to go from zero accidents to zero risks by introducing risk
assessment as a tool for finding potential risks in the workplace
promptly and eliminating them, in order to prevent accidents
at production bases, as well as offices. As for health, we aresupporting employee healthcare by implementing measures
to prevent mental health issues and promoting the creation of
comfortable work environments.

Safety and Health Committee

26

CORPORATE GOVERNANCE

Corporate GovernanceCorporate Governance Structure
JVCKENWOOD believes that one of its most important management issues is to increase the transparency and efficiency of its managerial
decision-making process and improve corporate value by strengthening corporate governance. To this end, we make it a basic policy toenhance corporate governance through the establishment of a structure that includes checks and balances. That policy calls for separating
management from the execution of operations, recruiting external directors and auditors, improving the function of acting as a check by
establishing internal audit sections, and thereby strengthening the Company’s internal control system on a Group-wide basis.

Corporate Organizations
1. Matters concerning the Board of Directors
and Directors

3. Matters concerning Audit & Supervisory Board
and Audit & Supervisory Board Membersin accordance with the Companyʼs Articles of Incorporation to
enable the formulation of flexible capital and dividend policies
unless otherwise specified in law, including dividends fromsurplus, are determined by resolutions of the Board of Directors— instead of shareholder resolutions.
The Board of Directors, regarded as an organization thatmakes fundamental and strategic decisions while overseeing
business execution, to deliberate and decide on basic
management policies and important matters as well as monitor
and oversee the status of business execution. Directorsʼ termsof office are one year in order to make their responsibilities
clear and to make management decision-making processes
quicker. In addition, we proactively recruit external directors inorder to increase the transparency of decision-making and leadinnovation and governance.
To ensure the effectiveness of the management supervisory
function based on experience, achievements, professional
viewpoints, insights, and other attributes, as well as
independence having no potential conflicts of interest withgeneral shareholders, JVCKENWOOD elects candidates forexternal directors, in principle, by confirming their businessbackgrounds based on its independence standards and policies.

JVCKENWOOD is a company with Audit & Supervisory Board.
Audit & Supervisory Board Members are responsible for the
corporate audit function and their duties include attending
Board of Directors’ meetings and other important meetings, aswell as holding Audit & Supervisory Board meetings, auditing
execution of Directors’ duties, business execution of the entire
Group, and corporate accounting.
To ensure the effectiveness of the management supervisory
function based on experience, achievements, professional
viewpoints, insights, and other attributes, as well as
independence, having no potential conflicts of interest withgeneral shareholders, JVCKENWOOD nominates candidates forexternal Audit & Supervisory board members in principle after
confirming their business backgrounds (i.e. confirming they
have not been major shareholders of JVCKENWOOD or engaged
in the execution of operations of any of JVCKENWOOD's main
business partners) based on its independence standards andpolicies, with the approval of the Board of Auditors.

2. Matters concerning Executive Officer System
JVCKENWOOD adopts an executive officer system.
The Board of Directors which leads corporate transformationand establishment of corporate governance makes decisions
through discussions between external directors as independent
directors and directors serving concurrently as executive
officers, and delegate authority for business execution
to executive officers. In addition, the Chairman and theRepresentative Director of the Board serves as the Chief
Executive Officer (CEO), while President and the Representative
Director of the Board serves as the Chief Operating Officer(COO). They are responsible for both management supervisionand business execution. According to the decisions at meetingsof the Board of Directors, the CEO chairs the Board of Executive
Officers’ meetings, and the COO executes business operations
with responsibility.
27

【Organization System】

As of July 1, 2015

Shareholders’ Meeting
Report /Appointment and removal

ReportReport /Appointment and removal

ReportReport / Appointment and removal

ReportAudit & Supervisory Board
3 Audit & Supervisory Board Members(including 2 from outside the company)

Board of Directors

Audit

Audit

8 Members of the Board of Directors(including 3 from outside the company)
ReportCorporate Audit OfficeInternal Audits

Board of Executive Officers（JVCKENWOOD Group Companies）

15 Executive Officers(including 5 directors)

Chief Executive Officer(CEO)

Chief Operating Officer(COO)

Chief Strategy Office (CSO)

Chief Innovation Officer (CIO)

Chief Financial Office (CFO)

Chief Risk Officer (CRO)Regional CEO (America)
Regional CEO (Europe)
Regional CEO (Asia)
Regional CEO (China)

Chief Production Office (CPO)
Corporate Division Heads(4 persons)Regional CEO (Japan)
In chage of Automotive sector

Information Disclosure Council

PL Board

Compliance Committee

Environment Board

In chage of Public service sector
Operations

Corporate Strategy Staff

Accounting Auditors
Financial Audit

Report / Appointment and removal

Report

Audit

ReportIn chage of Media service sector

Operations
Operations

Sales Company (America)
Sales Company (Europe)

Operations

Sales Company (Asia)

Operations

Sales Company (China)

Operations
Operations
Operations
Operations

Domestic Sales Division
Automotive sector
Public service sector
Media service sector
Other Affiliates

Internal Audit, Audit by Audit & Supervisory Board Members and Accounting Audit Systems
JVCKENWOOD positions the Corporate Audit Office which conducts
internal audit on the overall business execution of the entire Groupand reports the audit results to the Board of Directors that serves as anoversight organization.
It also improves the quality of audits by having external experts evaluate
the quality of internal audits of JVCKENWOOD.
Audit by Audit & Supervisory Board Members implements audits
according to the audit schedule, audits the entire Groupʼs operations,and checks in-house approval documents based on the monitoring of

directors and executive officers. Audit & Supervisory Board Members
also accompany audits performed by the Corporate Audit Office, thereby
broadening the scope of audit by Audit & Supervisory Board Members.
During the fiscal year ended March 2015, three certificated public
accountants, Yasunari Kunii, Yasuhiko Haga, and Nobuo Son,
performed accounting audits of JVCKENWOOD and the Group. They
are limited liability partners and managing partners of Deloitte Touche
Tohmatsu Limited.

Coordination among Internal Audit, Audit by Audit & Supervisory Board Members, and Accounting Audit
All the Audit & Supervisory Board Members including external
audit & supervisory board members perform management audit bythemselves, attend Board of Directorsʼ meetings, obtain the results ofinternal audit performed by the Corporate Audit Office in relation to
the Groupʼs overall business operations, and exchange and confirm
relevant information by holding meetings with the Corporate Audit
Office whenever necessary. If there is a sign of fraud or other misdeeds

committed by management, the Corporate Audit Office is required toreport it to Audit & Supervisory Board Members in accordance with theinternal rules.
At the Audit & Supervisory Board meeting, the results of accounting
audits performed by independent accounting auditors are regularly
reported to Audit & Supervisory Board Members. As a result, the validityof mutual coordination between audits has been improved.

Internal control system
JVCKENWOOD set up the Internal Governance Office developing“systems necessary to ensure the properness of operations of a Stock
Company” through promotion activities of internal control systems.
The Internal Governance Office promotes the development of theinternal control environment by carrying out the following operations.

28

Operations for proper development and operation of internal
control systems
Operations for enforcing and ensuring complianceInternal control operations over financial reporting (operations toensure J-SOX compliance)
Operations for preventing/curbing fraudulent accounting practices

CORPORATE GOVERNANCE

Enterprise Risk Management Activities
Key Philosophy and Activities
The JVCKENWOOD Group regards risks as “factors that are mutually
linked, affecting one another to inhibit the achievement of businessplans.” The Group regularly identifies risks faced by all its business sitesaround the world in order to recognize them clearly. Also, the Group’sbusiness sites around the world identify issues to tackle in order toprevent the occurrence of the identified risks and minimize their impact
or damage. They conduct activities to resolve these issues systematicallyby applying imagination and creativity. In the meantime, some of

the identified risks could affect the entire Company and thus require
problem solution activities on a company-wide scale from a companywide perspective. Management takes the initiative in implementing
measures to resolve such problems. We consider that the most effective
corporate response to risks is to identify them correctly in the course ofour day-to-day corporate activities, understand the problems in reducing
risks, and have all our business sites around the world collaborate withmanagement to resolve those problems.

Risk Management Organization
JVCKENWOOD implements the risk surveillance process shown in the
diagram below at all its business sites around the world every year.
The purpose is to ensure the risk management activities are conducted
through collaboration between its business sites and management.
In the risk surveillance process implemented throughout the year, wequantitatively assess the significance of risks identified by the businesssites, examine problems in reducing risks of high significance, and workon resolving those problems and confirm the effect. The Enterprise Risk
Management Conference, which is comprised of members chosen fromcompany executives and chaired by the CRO (Chief Risk Officer), keeps
track of the progress and results of such activities. If risks that need

to be addressed on a company-wide scale and from a company-wide
perspective are identified, company executives in charge selected fromamong the members of the Enterprise Risk Management Conference
prepare resources and a mechanism for solving problems and provide
support to activities at business sites systematically. The progress andresults of such activities are shared at the Enterprise Risk Management
Conference, and the CRO evaluates the performance and gives
appropriate directions. The Enterprise Risk Management Conference
also develops risk management regulations to enable the frameworkof risk management activities to function effectively and holds various
deliberations for risk management.

Risk Surveillance Process implemented
by all the Group’s business sites around the world

Risk management led by management

Public Services Sector

Automotive Sector

Corporate Division,
Head OfficeMedia Services Sector

Domestic andoverseas affiliates

The Enterprise Risk Management Conference:
Chairman: Chief Risk Officer (CRO)Members: General Executives and Executive Officers in charge of thesector, selected by the CRO

Implementation of the Risk
Surveillance Process
Risk identification
Risk assessment
Formulation of risk response measures
Reassessment of risks

Risk response implementation
Interim monitoring

Secretariat
Risk Management Office
Extraction of significant risks
Extract risks that need to be addressed from a company-wide perspective.
Implementation of measures for solving problems
Select persons in charge of solving problems from among the members of theEnterprise Risk Management Conference. They secure resources and develop,
plan and implement measures for solving problems, support the activities atthe business sites from a company-wide perspective, and share the progressand results of such activities at the Enterprise Risk Management Conference.
Formulation of risk-related regulations

Formulation of BCP (Business Continuity Plan) and training to make BCP established

Final review

Deliberation of matters related to risk management
Deliberation of important matters concerning risk management
Report of abnormal value and responses

Business Continuity Paln
Facing various risks, in particular emergency situations including
natural disasters, epidemics, and terrorism, the JVCKENWOOD Group
recognizes that its social responsibility to stakeholders including
customers is to put the utmost priority on preserving human life andsecondly to fulfill its responsibilities to deliver our products and services.
To fulfill this responsibility, the Group has defined the basic principle of
the Business Continuity Plan (BCP) as “contributing to social security
and safety through continuing business by swiftly reinitiating business
operations after the occurrence of an emergency situation.”
Based on this policy, and beginning with the development of systems
for confirming the safety of employees and their families, disasterprevention, and emergency stockpiles, the JVCKENWOOD Group has
been working progressively on BCP measures in all its business divisions
relevant to its value chain, from design and development bases, theCorporate Division of the Head Office, and sales bases to affiliates. It
has done so by leveraging its accumulated BCP expertise to build instages a mechanism of alternative production in preparation for eventsin which it would be difficult to restore its production bases in a shortperiod of time. The Group also carries out various types of simulation
training to gain initial response experience, while improving rules andmanuals based on the results and findings of such training, aiming to
make BCP become solidly established.

29

Stakeholder Engagement

Customers

Customers and retailers

In order to provide safety and peace of mind to customers, the JVCKENWOOD Group establishedits basic policy on product safety and conducts product development and safety management
based on this policy.
We have posted Using Products Safely on our website. This information is easy-to-understand andexplains how customers can use our
products safely and with confidence.
Every day we sort out and categorize
the opinions of customers sent to ourcustomer support center to use thecustomer feedback to improve our
products and services.
customer support center Engagement with sales agency
・Website ・Catalog
・Press announcements

Announcements for customers
・Product information・Support information

・Sales department・Service departme
・Customer service department

Customer comments on the intranet

Operatingdepartments
reflect feedbackin products

Customer survey activities

Analysis of customer comments
and improvement proposals

Business leader(Head Office staff)

Customer comments will be reflected in products and services

Shareholders/Investors
JVCKENWOOD has a separate page for investor relations information on thecompany website and makes timely and detailed disclosure of information.
At general meetings of shareholders, we have discussions with our shareholders toreflect their intentions in corporate management and provide explanations on the
direction of corporate management to promote their understanding. Further we holddialogues with our shareholders on a daily basis over the telephone and via letters.
We hold a financial results briefing on a quarterly basis to explain an overview
of management to our investors and exchange opinions with them so that they
can have a better understanding of ourmanagement policy. In addition, we conduct
IR activities proactively, both domesticallyand internationally, to meet with ourinvestors directly and help them have a deep
understanding about JVCKENWOOD.
Briefing for institutional invester

Business partners
We are maintaining a smooth business relationship withprocurement partners for parts, materials and finished products byconducting supplier meetings and individual business negotiations
and checking annual evaluations by customers.
By conducting constant improvement activities, including audit
activities, we will achieve proper quality and delivery periods, aswell as costs, in an effort to continue with business transactions
that are beneficial for both business partners and JVCKENWOOD.
Supplier meeting in China

30

STAKEHOLDER ENGAGEMENT

Society
We conduct cleaning volunteer activities in the areas surrounding ourbusiness centers to keep harmonious relationships with people living in thelocal communities.
We participate in events carried out by the City of Yokohama where theHead Office is located to help promote regional culture.
We are contributing to the development of the electronics industry by
developing proper and smooth relationships with the relevant ministries andagencies as well as industry associations through public relations activities.

Employees
We create opportunities for us toexplain the medium- and long-term
management plan to all the employees
directly, so that we can exchange
opinions and share our awareness of itwith everybody.
We share the actual conditions ofmanagement and recent effortsof the company with employees
through management meetings thatare held regularly.
We promote improvement of mutual internal communication by utilizing an
in-house web-based newsletter to report on the activities of top management
and introduce employees’ active involvement in activities related to their workand their personal lives, and post the employees’ responses.
We have established the JVCKENWOOD Group Compliance Activity Standards andInternal Whistleblower Regulations to create an open workplace environment.

JVCKENWOOD will enhance mutual communication
with various stakeholders to achieve sustainable growth
JVCKENWOOD considers that the achievement of sustainablegrowth and fulfilment of social responsibility are closely connected.
Accordingly, we promote sound business activities by strengthening
risk management and compliance, as well as improving thecorporate value by addressing social and environmental issues(through CSR activities). To this end, we will endeavor to operatebusiness by leveraging our strengths and communicate information,with the constant awareness of challenges to be addressed,by listening to the opinions of all the stakeholders, including
customers, employees, business partners, local society andshareholders/investors.

General Executive, Corporate
Communication Division

Shinichiro Nishishita

31Corporate History
JVCKENWOOD Corporation

2007

Jul.
Aug.

2008

Oct.
May.
Oct.
Oct.

2009

Jun.

2010

Dec.
Mar.

Dec.
2011

Aug.
Oct.

2012

Apr.

2013

Jun.
Nov.
Mar.
Jun.
Jul.

2014

Jan.
Mar.
Sep.

2015

Mar.
Apr.
May.

Victor Company of Japan, Limited (JVC) and Kenwood Corporation (Kenwood) entered into an agreement on a capital and business alliance tocooperate in their Car Electronics and Home Audio Businesses and integrate their management
JVC increased its capital through a third-party allocation of new shares of a total of 35 billion yen to Kenwood and multiple investment funds
managed by SPARX International (Hong Kong), Ltd.
JVC and Kenwood established the technology development joint venture J&K Technologies Corp. (J&K Technologies)
JVC and Kenwood signed an agreement to integrate their management through the establishment of a joint holding company (stock transfer)
JVC and Kenwood established the joint holding company JVC KENWOOD Holdings, Inc. (JVCKENWOOD) through a stock transfer (JVCKENWOOD’s
shares were listed on the First Section of the Tokyo Stock Exchange)
Development and production functions of the Car Electronics Business of JVC and Kenwood were taken over by J&K Technologies througha company split (simplified absorption-type split)
J&K Technologies renamed J&K Car Electronics Corporation (J&K Car Electronics), making J&K Car Electronics a virtually independent company
engaged in the Car Electronics Business
Launched the first car navigation system MDV-313 that adopts the same platform JVC and Kenwood (Photo ①)
Implemented adjustments to earnings results of JVC for the period between the fiscal year ended March 31, 2005 and the second quarter of the
fiscal year ended March 31, 2010 (including consolidated financial statements as a consolidated subsidiary of JVCKENWOOD), and to those of
JVCKENWOOD for the period from its establishment on October 1, 2008 to the second quarter of the fiscal year ended March 31, 2010
Undertook steps to relocate the Company’s head office and realign business divisions to promote Group management integration, enhance
operating efficiency and maximize integration effects
JVC KENWOOD Holdings, Inc. changed its name to JVCKENWOOD Corporation
Completed an absorption-type merger of its three subsidiaries Victor Company of Japan, Limited, Kenwood Corporation, and J&K Car
Electronics Corporation
Acquired a total of 45.0% of the outstanding shares of Shinwa International Holdings Limited, a large-scale Hong Kong-based manufacturer andsellers of CD/DVD mechanisms for car AV equipment (in-car CD/DVD mechanisms), making it into an equity-method company
Distributed dividends (¥5/share) for the first time since established JVCKENWOOD
Formulated a new “Mid-term Business Plan,” which covers the period through to the fiscal year ended March 31, 2016
Launched DLA-VS4800, the world’s first mass-production model of the professional-use D-ILA projector, which features an 8K high-definition display
Converted Shinwa International Holdings Limited into a consolidated subsidiary
Took over all of the shares of TOTOKU Nagaoka Corporation through an absorption-type corporate split from TOTOKU Electric Co., Ltd.,and changed the corporate name from TOTOKU Nagaoka to JVCKENWOOD Nagaoka Corporation
Invested in WiL FUND I, L.P. to accelerate growth strategy partnership with domestic and international venture companies
Signed with AIRBUS DEFENCE AND SPACE an alliance to develop and commercialise public safety wireless broadband systems
Obtained 100% ownership of EFJohnson Technologies, Inc., a company focused on delivering mission-critical, digital P25 communications
solutions to the North American market
The JVCKENWOOD Group launched NX-5000 series, NEXEDGE series of multi-mode digital radio systems that compliedwith the P25 standard (Photo ②)
Launched GY-LS300, professional 4K memory card camera recorder (Photo ③)
Converted ASK Industries S.p.A., the European In-vehicle Component Company, into a consolidated subsidiary
Renovated the mid-term business plan which announced on fiscal year 2012, and set up a new mid- to long-term business plan, “Vision 2020,”
focusing on fiscal year 2020

①Integrated car navigation system“MDV-313” manufactured
by Kenwood and JVC

32②NEXEDGE series of multi-mode
digital radiosystems that are compliant
with the P25 standard "NX-5000 series"③Professional 4K memory card
camera recorder "GY-LS300"

CORPORATE HISTORY

Former Victor Company of Japan, Limited
1927

Established Victor Talking Machine Company of Japan, Limited

1939

Produced the first TV receiver in Japan (Photo ④)

1956

Developed 45/45 stereo record format

1963

Introduced KV-200, the world’s smallest 2-head professional VCR

1976

Introduced HR-3300, the worlds first VHS recorder (Photo ⑤)

1986

Introduced GR-C7, the world’s smallest and lightest VHS-C video camera

1991

Introduced AV-36W1, the first 16:9 TV in the industry

1995

Introduced GR-DV1, the world’s first pocket-sized digital camcorder

2003

Introduced GR-HD1, high-definition digital camcorder
Introduced EX-A1, compact home stereo component system④The first TV receiver in Japan2005

JVC co-developed high-quality audio compression technology “net K2” with Victor Entertainment, Inc.

2006

JVC awarded the prestigious IEEE Milestone for the development of VHS

2007

Introduced Everio GZ-HD7, the worlds first full HD hard disk camcorder for consumers (Photo ⑥)

2009

Introduced the JVC global brand throughout Japan
Introduced the GD-463D10, full HD 3D LCD monitor for professional use

2010

JVC LSI enables high-speed image processing in HD camcorders

2011

Merged into JVCKENWOOD Corporation⑤The worlds firstVHS home video recorder“HR-3300”⑥Full HD hard disk
camcorder "GZ-HD7"

Former Kenwood Corporation
1946

Established Kasuga Radio Co., Ltd.

1957

Began exporting FM-100 the FM tuner for the first time as a Japanese manufacturer (Photo ⑦)

1960

Renamed Trio Electronics, Inc.

1962

Launched TW-30 , the industry’s first transistor amplifier

1966

Introduced fully transistorized audio products for the first time in the industry

1978

Entered the professional radio equipment field in Japan

1980

Entered the car audio field in the U.S., launched the KENWOOD brand car audio in Japan.(Photo ⑧)

1983

Entered the business & industry sector of professional radio field in the U.S.

1986

Renamed Kenwood Corporation

1991

Official supplier contract with McLaren F1 Team

⑦FM tuner "FM-100"

Developed and began to supply wireless radio systems for the Team as exclisive use⑧Representative model ofthe car audio first seriesline-up "KXC-757"

1992

Entered the car navigation system field, launching KNV-100 , the industry’s first 1DIN-size GPS car navigation system

1997

Supplied "the Real Focus Sound System" for "Forester" and "Legacy" the car of Subaru, establishing a base for the OEM Business

2004

Acquired the wireless radio business from Toyo Communication Equipment Co., Ltd.

2005

Technical and capital alliance with Icom Inc. to jointly research the standardization of2007

Converted Zetron, Inc., a U.S. systems-based communication company into a subsidiary

technical specifications for digital wireless radio equipment
Exclusive sales agreement with Garmin the largest PND maker in the U.S.
for AV-integrated navigation systems in the consumer market (Photo ⑨)
2008

Launched a voluntary organization jointly to contribute to the development of land mobile radios in the Americas

2010

Lauched land mobile radio equipment for emerging markets TK-U100, TK-2000/3000

2011

Merged into JVC KENWOOD Corporation⑨A model of AV-integrated
navigation system featuring
Garmin navigation software"DNX7100"33

NETWORK(GLOBAL)

Network (Global)
As of October 1, 2015

Global Affiliated Manufacturing Companies
Name

Location

Main Products

JVCKENWOOD Electronics France S.A.S.

Janze, France

Car electronics equipment

JVCKENWOOD Electronics Malaysia Sdn. Bhd.

Johor, Malaysia

Car electronics and telecommunications equipment

JVCKENWOOD Electronics (Thailand) Co., Ltd.

Pathumthani, Thailand

Professional products

JVC Optical Components (Thailand) Co., Ltd.

Nakhon Ratchasima, Thailand

Electronic components (for optical pickups)

P.T. JVC Electronics Indonesia

West Java, Indonesia

Car electronics equipment

Shanghai Kenwood Electronics Co., Ltd.

Shanghai, China

Car electronics and telecommunications equipment

Europe : Affiliated Sales Companies

Americas : Affiliated Sales Companies

Name

Location

Name

Location

JVCKENWOOD U.K. Ltd.

The United Kingdom

JVCKENWOOD USA Corporation

U.S.A.

JVCKENWOOD France S.A.S.

FranceJVCKENWOOD Canada Inc.

CanadaJVCKENWOOD Italia S.p.A.

Italy

JVCKENWOOD Latin America, S.A.

PanamaJVCKENWOOD Iberica, S.A.

Spain

JVCKENWOOD do Brasil Comércio de Eletrônicos Ltda.

Brazil

JVCKENWOOD Deutschland GmbHGermany

JVCKENWOOD Belgium N.V.

Belgium

JVCKENWOOD Nederland B.V.

Netherlands

LLC "JVCKENWOOD RUS"

RussiaAsia, Oceania, the Middle East, and Africa : Affiliated Sales Companies

China : Affiliated Sales Companies

Name

Location

Name

Location

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVC (China) Investment Co., Ltd.

China

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

JVCKENWOOD Hong Kong Ltd.

China

JVCKENWOOD Thailand Co., Ltd.

Thailand

JVCKENWOOD Gulf Fze

U.A.E.

PT. JVCKENWOOD Indonesia

Indonesia

JVCKENWOOD Australia Pty. Ltd.

Australia

Other Main Global Affiliated Companies

34

Name

Location

Zetron, Inc.

U.S.A.

AltaSens, Inc.

U.S.A.

Shinwa International Holdings Ltd.

China

EFJohnson Technologies, Inc.

U.S.A.

ASK Industries S.p.A.

Italy

JVCKENWOOD Technologies Singapore Pte. Ltd.

Singapore

NETWORK(JAPAN)

Network (Japan)
As of October 1, 2015

Business Centers
Name

Location

Main R & D Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Video cameras, Displays, Home audio, etc.

Kurihama Business Center

Yokosuka, Kanagawa

Projectors, D-ILA devices, Laser diodes, etc.

Hachioji Business Center

Hachioji, Tokyo

Car electronics

Hakusan Business Center

Yokohama, Kanagawa

Communications, Security cameras, etc.

Main Japanese Manufacturing Sites and Affiliated Manufacturing Companies
Name

Location

Main Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Electronic components (for optical pickups)

Kurihama Business Center

Yokosuka, Kanagawa

Electronic components (D-ILA devices, Laser diodes)

Yokosuka Business Center

Yokosuka, Kanagawa

Projectors, etc.

JVCKENWOOD Devices Corporation

Osato-gun, Saitama

Components

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Professional products

JVCKENWOOD Creative Media Corporation

Yamato, Kanagawa

CD and DVD discs (prerecorded)

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

Electronic devices such as Medical Display Monitor Solution, On-vehicle Substrates

JVCKENWOOD Interior Furniture Corporation

Fukuroi, Shizuoka

Home furniture

Main Japanese Consolidated Affiliated Companies
Name

Location

Main Business

JVCKENWOOD Victor Entertainment Corporation

Shibuya-ku, Tokyo

Planning, production, and sales of audio and video, software, etc.

J&K Business Solutions Co., Ltd.

Yokohama, Kanagawa

Sales, installation, maintenance and repair of professional audio,
imaging and telecommunications equipment

JVCKENWOOD Arcs Corporation

Minato-ku, Tokyo

Sales of professional audio and visual equipment

JVCKENWOOD Video Tech Corporation

Shibuya-ku, Tokyo

Video production, editing and sales, and studio operations

JVCKENWOOD Kenex Corporation

Hachioji, Tokyo

Sales and other operations relating to audio andcommunications equipment, etc.

Kenwood Home Electronics Corporation

Yokohama, Kanagawa

Sales of home electronics products, etc.

JVCKENWOOD Optical Components Corporation

Yokohama, Kanagawa

Sales of electronic components (optical pickups, etc.)

JVCKENWOOD Nagano Corporation

Ina, Nagano

Sales and manufactures of Car electronics, etc.

Victor Service & Engineering Co., Ltd.

Yokosuka, Kanagawa

After-sales services of audio, imaging equipment

JVCKENWOOD Service (Japan) Corporation

Yokosuka, Kanagawa

After-sales services and other operations relating to audio,
communications and other equipment

JVCKENWOOD Partners Corporation

Hachioji, Tokyo

Undertaking of welfare program, general, personnel,
accounting and other affairs

JVCKENWOOD Engineering Corporation

Yokohama, Kanagawa

Development and design of hardware and software

JVCKENWOOD Design Corporation

Meguro-ku, Tokyo

Planning and production of industrial designs for audio,
communications and other equipment

35

MANAGEMENT TEAMManagement TeamAs of October 1, 2015
Audit & Supervisory
Board Members

Directors of the Board

Haruo Kawahara

Kazuhiro Aigami

Junichi Hikita

Takao Tsuji

Seiichi Tamura

Masanori Yoshikai Akihiko Washida

Yasuyuki Tanida

Yasuyuki Abe

Executive Officers

Takayoshi Sakamoto Shoichiro Eguchi

Shojiro Asai

Naokazu Kurihara Masatoshi Miyamoto Hirohito Kamiyama

Masaaki Saito

Masaki Imai

Akira Suzuki

Satoshi Fujita

Toshiaki Matsuzawa

Kazuki Oi

Directors of the Board
Haruo Kawahara

Kazuhiro Aigami

Junichi Hikita

Chairman, Representative Director of the Board

Director of the Board

Director of the Board (External)*1

Takao Tsuji

Seiichi Tamura

Masanori Yoshikai

President, Representative Director of the Board

Director of the Board

Director of the Board (External)*1

Yasuyuki Tanida

Yasuyuki Abe

Director of the Board

Director of the Board (External)*1*1 External Director specified in Item 15, Article 2 of the Corporate Law

Audit & Supervisory Board Members
Takayoshi Sakamoto

Akihiko Washida

Shojiro Asai

Audit & Supervisory Board Member

Audit & Supervisory Board Member (External) *2

Audit & Supervisory Board Member (External) *2*2 Audit & Supervisory Board Member (External) specified in Item 16, Article 2 of the Corporate Law

Executive Officers
Haruo Kawahara

Masaaki Saito

Toshiaki Matsuzawa

Chief Executive Officer (CEO)Deputy President & Executive Officer,Assistant to COO (Media Services Sector),
President and Representative Director of JVCKENWOOD Victor Entertainment,
Corporation

Chief Production Officer (CPO)

Takao Tsuji

Satoshi Fujita

Masatoshi Miyamoto

Chief Operating Officer (COO),
In charge of Public Services Sector

Chief Financial Officer (CFO)

Senior Vice President & Executive Officer,
General Manager of Finance & Accounting Division

Seiichi Tamura

Yasuyuki Tanida

Akira Suzuki

Chief Strategy Officer (CSO),
General Executive of Corporate Strategy Division

Chief Innovation Officer (CIO),
Assistant to COO (Automotive Sector)

Senior Vice President & Executive Officer,
Assistant to COO (Communications Systems Business)

Shoichiro Eguchi

Naokazu Kurihara

Kazuki Oi

CEO Europe

CEO Japan

CEO Asia
Senior Executive, Public Service Sector, Asia

Kazuhiro Aigami

Masaki Imai

Hirohito Kamiyama

CEO Americas
President of JVCKENWOOD USA Corporation

Chief Risk Officer (CRO),In charge of Corporate Management Division& Corporate Audit Office

CEO China
President of JVC (China) Investment Co., Ltd. ,President of Shinwa International Holdings Limited
Concurrently serving as Director of the Board

36

CORPORATE PROFILE / STOCK INFORMATION

Corporate Profile / Stock Information

Corporate Data
Company NameJVC KENWOOD Corporation

Businesss Segments

Controlling and managing the business activities by operating the Automotive sector, Public Service sector,
Media Service sector and owning shares and interest in the companies which run those businesses

Representative Director

Haruo Kawahara, Chairman, Representative Director of the Board
Takao Tsuji, President, Representative Director of the Board

Date of Incorporation

October 1, 2008

Capital¥10 billion

Number of Employees

17,668 (as of March 31, 2015)

Equity¥79,762 million (as of March 31, 2015)

Total Assets¥279,041 million (as of March 31, 2015)

Fiscal Year-End

March 31

Head Office

3-12, Moriyacho, Kanagawa-ku, Yokohama-shi, Kanagawa 221-0022

Stock Information
Ordinary General Meeting of Shareholders

In June each year

Record Date

[Ordinary General Meeting of Shareholders] March 31 each year.
[Year-end dividend] March 31 each year.

[Mid-year dividend] September 30 each year

* Besides the above record dates, a dividend of surplus may be paid through specifying a record date separately.
Stock Exchange Listing

Listed on the first section of the Tokyo Stock Exchange.

Security Code6632

Trading Unit

100 shares

Total Number of Shares Issued

139,000,201 shares (including 340,031 treasury shares) (as of March 31, 2015)

Total Number of Shareholders

52,629 (as of March 31, 2015)

Shareholder Registry Administrator

Sumitomo Mitsui Trust Bank Limited, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo, Japan

Place for the Registration

Stock Transfer Agency Business Planning Dept.,
Sumitomo Mitsui Trust Bank Limited, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Shareholder Composition

Major Shareholders (Top 10)

As of March 31, 2015

As of March 31, 2015

Japanesecompanies
4.44%
Securities
companies
5.00%

Financial
institutions
20.91%

Treasury stock
0.24%

Individuals
and others
35.33%

Foreign companies
34.08%

Name

Ratio of
Number ofstocks held shareholding(%)(thousands)

CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW

7,244

5.22

Japan Trustee Services Bank, Ltd. (trust account)

4,897

3.53

Japan Trustee Services Bank, Ltd. (trust account 9)

4,202

3.03

DENSO CORPORATION

4,171

3.01

The Master Trust Bank of Japan, Ltd. (trust account)

3,761

2.71

CBNY DFA INTL SMALL CAP VALUE PORTFOLIO

3,339

2.41

BNY GCM CLIENT ACCOUNT JPRD AC ISG(FE-AC)

3,133

2.26

GOLDMAN SACHS INTERNATIONAL

2,434

1.76

The Dai-ichi Life Insurance Company, Limited

1,852

1.34

JAPAN SECURITIES FINANCE CO., LTD.

1,774

1.28

37

● For further information, please contact:

Public Relations & IR Department, Corporate Communication Division
3-12, Moriyacho, Kanagawa-ku, Yokohama-shi, Kanagawa, 221-0022, Japan
Tel: +81-45-444-5232 Fax: +81-45-444-5239
E-mail: prir@jvckenwood.com

2015

JK0014