Contents
Corporate Visions / Business Composition . . . . . . . . . .1
Overview of the JVCKENWOOD Group . . . . . . . . . . . .2
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Management Message. . . . . . . . . . . . . . . . . . . . . . . . . .4
Specific Actions
for the Fiscal Year Ending March 2015 . . . . . . . . . .6
Outline of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Special FeatureⅠ｜Creating excitement and
“peace of mind” for the people of the world . . .18
Special FeatureⅡ｜Creating “excitement” and
peace of mind for the people of the world . . . . .22
Global Brand Strategy . . . . . . . . . . . . . . . . . . . . . . . . .24
Corporate Social Responsibility (CSR)
About our environmental activity . . . . . . . . . . . . . .26
Connection with society . . . . . . . . . . . . . . . . . . . . . .28
Together with customers . . . . . . . . . . . . . . . . . . . . .30
Together with Business Partners . . . . . . . . . . . . . . .31
Together with Employees . . . . . . . . . . . . . . . . . . . . .32
Supporting career and skill development . . . . . . . .33
Helping support harmony between work
and family life . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Health and safety . . . . . . . . . . . . . . . . . . . . . . . . . . .35
Corporate Governance. . . . . . . . . . . . . . . . . . . . . . . . .36
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Corporate History . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Network (Global) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Network (Japan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Corporate Data / Share-Related Information . . . . . . .45

Corporate Visions

Creating excitement and
peace of mind
for the people of the world.
Business Composition
Car Electronics Segment
■ Net sales
ー Operating income

108.4
7.9

107.3

(Billions of yen)

114.0
94.4

6.5

Professional Systems Segment
■ Net sales
ー Operating income

92.5
3.6

93.5

(Billions of yen)

4.1

3.6

3.2

91.8

97.0

FYE
3/'12

FYE
3/'13

FYE
3/'14

2.0
-0.5

FYE
3/'11

FYE
3/'12

FYE
3/'13

FYE
3/'14

FYE
3/'11

■ Major Products

■ Major Products

Land Mobile Radio Equipment,
Video Surveillance Equipment, Audio Equipment,
Video Equipment, Professional Display Equipment,
Medical Display Monitor Solutions

Car Audio, Car AV Systems,
Car Navigation Systems,
CD and DVD Mechanisms for Car-Mounted Equipment

Optical & Audio Segment
■ Net sales
ー Operating income

1.8

(Billions of yen)

Entertainment Software Segment
■ Net sales
ー Operating income

2.2

1.3

2.0

0.9

-0.8

77.5

87.1

74.7

42.9

FYE
3/'14

FYE
3/'11

(Billions of yen)

1.2

40.9

36.4
0.6

36.7

100.1

FYE
3/'11

FYE
3/'12

FYE
3/'13

FYE
3/'12

FYE
3/'13

FYE
3/'14

■ Major Products

■ Major Products

Camcorders, Home Audio,
AV Accessories, Projectors, Displays,
Optical Pickups for Car-Mounted Equipment

Planning, Production and Sales of Audio and Video
Content including CDs and DVDs,
Production and Sales of CDs and DVDs (prerecorded)

* The Company shifted to a new segment system on June 25, 2013. The graphs for FYE 3/'11 and FYE 3/'12 provide details of results for the old segments.
* The graphs for FYE 3/'13 and FYE 3/'14 are based on ﬁgures including internal sales or the transfer amount between segments.

Disclaimer
Forward-looking statements and graphs contained in our documents are based on currently available information and therefore 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, and factors 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.

JVC KENWOOD Corporation

1

Summary

Overview of the JVCKENWOOD Group
Overview of the JVCKENWOOD Group

Management policies:
Management policies:

1) Create excitement and peace of mind as a global manufacturer
1) Create excitement and peace of mind as a global manufacturer
specializing in electronic and entertainment products.
specializing in electronic and entertainment products.
2) Realize profitable growth by concentrating on strong business.
2) Realize profitable growth by concentrating on strong business.
3) Be a company that is widely trusted by society.
3) Be a company that is widely trusted by society.

Conduct guide
Conduct
guide
Every individual
to take charge and strive for never ending reform.
Every individual to take charge and strive for never ending reform.
(Billions of yen)

Sales Composition for FYE 3/’14
Sales Composition for FYE 3/’14

(Billions of400
yen)

400

Others
Others

Entertainment
Software
Segment
Entertainment
Software
Segment
（12%）
（12%）
Optical & Audio
Segment
Optical
& Audio
Segment
（20%）
（20%）

352.7
352.7

300
300
Car Electronics
CarSegment
Electronics
(36%)
Segment
(36%)

Sales
Sales

Professional Systems
Segment
Professional
Systems
Segment
（31%）
（31%）

Sales and Income Trends
Sales and Income
Trends
Operating
Income
Net Income
320.9
320.9

Operating Income

306.6
306.6

316.3
316.3

100
100

-10
-10

FYE
3/'11
FYE
3/'11

FYE
3/'12
FYE
3/'12

FYE
3/'13
FYE
3/'13

FYE
3/'14
FYE
3/'14

Professional Systems Segment

Optical & Audio Segment

Entertainment Software Segment

Others

Operating income

net incom

Car Electronics Segment

Professional Systems Segment

Optical & Audio Segment

Entertainment Software Segment

Others

Operating income

net incom

＊Production sites... 7 domestic sites, 11 overseas sites
sites... 7 domestic sites, 11 overseas sites
＊Production
The overseas production ratio is 86%
The overseas production ratio is 86%
＊Overseas sales sites... 28 sites The overseas sales ratio is 58%
＊Overseas sales sites... 28 sites The overseas sales ratio is 58%
Regional Sales Composition (FYE 3/’14)
Regional Sales Composition (FYE 3/’14)
Asia & others
Asia
& others
（16%）
（16%）
Japan
Japan
（42%）
（42%）

Europe
Europe
（16%）
（16%）
Asia (including China)
Asia (including
（81%）China)
（81%）

Americas
Americas
（27%）
（27%）

＊ Production sites, overseas sales sites as of July 1, 2014
production
ratio, overseas
based on FYE 3/'14.
Production
sites, overseas
sales sitessales
as ofratio
July are
1, 2014
＊Overseas
Overseas production ratio, overseas sales ratio are based on FYE 3/'14.

2

JVC KENWOOD Corporation

10
10
0 Income
0 Income

Car Electronics Segment

Americas
Japan
Americas
（4%）
Japan
（14%）
（4%）
（14%）

20

Net Income

Production and Sales System

Europe
（1%）
（1%）

20 of yen)
(Billions

200
200

0
0

Regional Production Composition (FYE 3/’14)
Regional
Europe Production Composition (FYE 3/’14)

(Billions of yen)

-20
-20

Financial Highlights

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

Net sales

Operating income

Total assets / Equity

Interest-bearing debt / Net debt

Total assets

Interest-bearing debt

Equity
Millions
of yen

Millions
of yen

400,000

15,000

Millions
of yen

300,000

100,000

300,000

306,581

316,343

92,369

267,380

13,105
320,869

Net debt
Millions
of yen

12,000

240,000

86,467

246,735

241,650

81,663

80,000

9,761
9,000

180,000

60,000

120,000

40,000

200,000
6,000

4,592
100,000
3,000

60,000

0

0
FYE 3/’12

FYE 3/’13

FYE 3/’14

57,253

67,518

26,808
60,224

0
FYE 3/’12

FYE 3/’13

26,473

20,000

0
FYE 3/’12

FYE 3/’14

28,706

FYE 3/’13

FYE 3/’14

FYE 3/’12

FYE 3/’13

FYE 3/’14

(Millions of yen)

FYE 3/ʼ12

FYE 3/ʼ13

FYE 3/ʼ14

Net sales

320,869

306,581

316,343

Operating income

13,105

9,761

4,592

Ordinary income (loss)

6,712

3,263

100

Net income (loss)

6,213

1,243

(6,450)

Total assets

241,650

246,735

267,380

Equity

57,253

67,518

60,224

Equity per share (yen)

401.07

475.19

375.89

22.9

26.6

19.4

Retained earnings

24,188

24,687

17,422

Interest-bearing debt

92,369

86,467

81,663

Net debt

26,808

28,706

26,473

Cash flows from operating activities

8,883

9,772

14,944

Cash flows from investing activities

(6,498)

(13,357)

(10,658)

Cash flows from financing activities

(1,523)

(8,609)

(9,582)

Number of employees

13,594

12,781

19,791＊2

Stockholders' equity ratio (%)＊1

＊1. (Equity – Minority interests) ÷ Total assets
＊2. The number of employees increased by 7,010 from the end of the previous fiscal year. This is due to having incorporated our former equity method affiliate Shinwa as a consolidated

subsidiary through additional share acquisition.

JVC KENWOOD Corporation

3

Management Message

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

The JVCKENWOOD Group was inaugurated on
October 1, 2008 through the management
integration between the former Victor Company of
Japan, Limited and Kenwood Corporation. After that,
we have overcome many difficulties, including the
Lehman Shock, which occurred immediately before
the integration, and structural reforms carried out by
the whole company, and posted net income for the
fiscal year ended March 2012, starting issuance of
dividends. Thus, we had finished our turnaround and
have focused on “Profitable Growth” under the
leadership of new CEO.
However, we have fallen into very severe financial
result for the first half of the fiscal year ended March
2014 due to a steep rise in costs of domestic sales,
resulting from rapid weakening of the yen, and a drop
in sales particularly in the consumer field overseas,
caused mainly by competition with smart phones.
In response to these difficult conditions, the
entire company has focused on implementing a series
of business restructuring measures, which include
improving sales scheme and product costs, emergency
measures, and structural reforms since the second half
of the current fiscal year. As a result, the Group
posted a year-on-year increase in operating income
for the second half of the current fiscal year, showing
clear signs of a business recovery.

Shift toward market-oriented operation
To make these reforms rapidly lead to restoration, we
quickly inaugurated a new management team to carry
out market-oriented operation on May 14, 2014. (*For
details, refer to Pages 6 through 7.)
Haruo Kawahara became CEO in November 2013.
As Chairman and CEO, he represents JVCKENWOOD
in the areas of group governance, funding,
organization, and promoting growth strategies
including new innovations under “The Approach of
the Company,” the early commercialization of nextgeneration businesses, and M&As. Takao Tsuji, who
had been the Director of the Board (External) of
JVCKENWOOD, will strive to recover profits by taking
lead of global business execution as President and
COO. He possesses management experience as
president and chairman of an IT company listed on
the First Section of the Tokyo Stock Exchange,

4

JVC KENWOOD Corporation

Management Message

following services for a general trading company.
Drawing on those careers, he will work on reactivating
the Groupʼs core overseas businesses, as well as
expanding the professional businesses. To date, he
has grasped the issues of JVCKENWOOD from the
viewpoint of an external director and provided advice.
He will carry out solutions as JVCKENWOOD pushes
forward with structural reform from the consumer
business to the professional product business.
Under the new management team approved at
the 6th Ordinary General Meeting of Shareholders
held in June 2014, we will do our utmost future
recovery and a new leap.

We aim to become a corporate group
that is widely trusted by society
We believe that it is critical for a company to meet the
expectations of various stakeholders, earn the trust of
society, and continue contributing to society in order
to achieve sustainable growth in society.

Takao
Tsuji

Haruo
Kawahara

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 business activities that
leverage our strengths, in order to become a
corporation that has the confidence of all
stakeholders, including consumers and corporate
clients. At the same time, we will support and
enhancement community-based social 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 measures against various risks
and organization-wide initiatives for business
continuity.
Thank you for your understanding and support.
August 2014
Chairman and CEO, Haruo Kawahara
President and COO, Takao Tsuji

JVC KENWOOD Corporation

5

Specific Actions for the Fiscal Year Ending March 2015
In fiscal year ended (FYE) March 2014, there was a substantial year-on-year decline in earnings due to a significant increase
in yen-denominated costs caused by a sharp depreciation of the yen against the U.S. dollar and sluggish overseas sales.
Responding to this issue, during and after the 3rd quarter of this year, the Company discontinued unprofitable 2013 models
ahead of schedule, moved up 2014 model releases in response to the weaker yen, undertook overall structural cost reforms
(e.g. increasing sales ratio of high value-added products), and took other emergency measures (e.g. reduced directorsʼ
remuneration, employeesʼ wages and bonuses). As a result, the Company is currently on a path to recovery.
The Company has also made strategic investments and restructured its business portfolio for FYE March 2015 and later
by taking measures to reduce fixed costs through solicitations of early retirement in Japan and structural reforms or
restructuring of overseas production and sales facilities, as well as through next-generation business development as midterm measures for growing business fields.
The Company has already reformed its business structure, but will be pursuing reforms more aggressively in FYE March
2015. In addition, it will promote the following activities to make a big step forward during and after FYE March 2016.

1. Restructuring of management organizationl structure
The Company has reviewed its product-oriented organization under the conventional division-based structure, and is
replacing it with a market-oriented (customer-oriented) organization that can operate its professional business activities,
whose sales composition has increased to 50% of the Groupʼs sales, aiming to expand domestic and overseas sales
generated by current business operations. The Company is also restructuring its management organization to achieve
successful results from M&A activities and strategic business tie-ups, and to accelerate next-generation business
development.

(1) Creation of regional CEO positions for a market-oriented structure

・To increase sales and improve consolidated performance, the Company is creating regional CEO positions in four regions

(Japan, America, Europe, and Asia (emerging nations)). As a result, detailed product and service plans can be made in
compliance with regional market characteristics and diversified customer needs, with the commercialization of products
by domestic divisions. Under these regional CEOs, the Company can ensure accountability for consolidated performance
in each region.

(2) Large-scale reorganization by business

・To accelerate collaboration among product divisions by also considering the Companyʼs current business scale, the

Company is discontinuing its division-based structure (i.e. business units implemented so far), and is substantially
reorganizing it into an upper-tier organization of business segments.
・The roles of each segmentʼs sales division are transferred to a corresponding regional CEO, and organizations responsible
for planning, technology, production, quality, and services under the control of those CEOs commercialize products at
the request of the regional CEO, who is also accountable for the consolidated performance of business operations.
・The Company will manage consolidated earnings by region, in addition to the conventional approach of managing
consolidated earnings by business segment, aiming to expand sales and improve profits and losses from these two
perspectives.

(3) Acceleration of shifting resources to growth areas

・The Company will accelerate the shift of its resources from shrinking consumer product business to growing in-car and

professional product business operations and from current businesses to next-generation businesses.

・The Company will also streamline staff workloads at the head office, and accelerate the shift of human resources to

operating divisions through inter-divisional integration and reorganization.

2. Building up the foundation for growth by centering around next-generation businesses
(1) CAROPTRONICS and advanced vehicle technology

・The Company will accelerate development and commercialization of the CAROPTRONICS business of such as head-up

displays and electronic mirrors based on its core technologies in sound, video, and optical technologies.

(2) Broadband multimedia system

・The Company will leverage its strategic partnerships with AIRBUS DEFENCE & SPACE and M&As with EF Johnson

Technologies, Inc. and Zetron to develop broadband system and promote development and commercialization of
professional radio multimedia systems, which include moving image and large-volume data communications services for
use by fire, medical, and emergency care services.

(3) Next-generation imaging (camera)

・The Company will divert technologies it has cultivated in the consumer product business to rapidly expanding in-car

cameras, and accelerate development and commercialization of new products centering on existing professional video
camera systems, monitoring cameras, and CMOS Sensors.

6

JVC KENWOOD Corporation

Business Strategy

3. Enhancing innovation of consolidated value chain and profit reform of current businesses
・The Company will consolidate value chain innovations to establish a system for sending orders directly from sales

companies to plants and enable the prompt start of alternative production in an emergency.

・The Company will continue to promote structural reforms such as restructuring and integrating overseas sales companies,

consolidating plants, improving operation capacity, and innovating production.

・The Company will promote product cost reforms in VA/VE＊ and procurement. In addition, it will step up cost management,

inventory management, and profit management by product to allocate resources with the focus on profitable products.

＊ Value Analysis / Value Engineering

Shifting from B to C to B to B
The B to B ratio will increase to about 50% in FYE March 2015 due to the M&A strategies of Professional Systems
(acquisition of EF Johnson Technologies, Inc. and taking over the Information Equipment Business of TOTOKU
Electric Co., Ltd.).

Change in Sales Composition Ratios
FYE 3/’13

FYE 3/’14

B to B ratio：40%

FYE 3/’15
（Plan）

B to B ratio：46%

B to B ratio：50%

＊ The B to B includes Car Electronics OEM and Professional Systems. Car Electronics OEM includes an overseas dealer option, an optical pick-up. Professional Systems includes projector

and LCOS.

Increasing OEM ratio of Car Electronics
The OEM ratio of Car Electronics increased to 43% in FYE March 2014 from 37% in FYE March 2013, including
dealer options, optical devices for car AV equipment, and Shinwa (Hong Kong), a recently consolidated company.

Change in Sales Composition Ratios
of Car Electronics OEM
FYE 3/’13

Consumer

OEM ratio: 37%

OEM

FYE 3/’14

Consumer

OEM ratio: 43%

OEM

JVC KENWOOD Corporation

7

Outline of Business
Car Electronics Segment

Memory Navigation Systems "Saisoku-Navi"
for the Domestic After-market

(Business sales ratio:36%)※

Memory Navigation Systems with Built-in
Wi-Fi for the Overseas After-market

Car Audio Systems
for After-market

Display Audio Systems
for the Overseas After-market

Dealer Option Memory Navigation
Systems for Automobile Dealers

CAROPTRONICS Products
(Image)

In-Vehicle Custom Fit Speakers

CD/DVD Drive Mechanisms
for Car-Mounted Equipment

Optical & Audio Segment

Full HD Memory Camcorders
"Baby Movie"

(Business sales ratio:20%)※

Quad Proof Full HD
Memory Camcorders
4K HD Camcorders

8K Professional-Use D-ILA Projector

Compact Component Systems

8

JVC KENWOOD Corporation

Stereo Headphones

High-Resolution Audio Systems "WOOD CONE"

Inner-Ear Headphones

High-Resolution Audio Systems "K series"

Mobile Batteries
for Smartphone Charge

Optical Pickups

Outline of Business

Professional Systems Segment

Digital Land Mobile Radios

Professional Video Camera Recorders

VoIP Radio Dispatch Systems

Security Video Cameras

(Business sales ratio:31%)※

Amateur Radios

License-Free Transceivers

Emergency Broadcasting Equipments

Medical Display Monitor Solutions

Entertainment Software Segment

(Business sales ratio:12%)※

Production of CDs, DVDs, BDs

(Business sales ratio is based on FYE 3/'14 sales)※

JVC KENWOOD Corporation

9

Car Electronics
Segment

Anticipating a shift from the after-market to the original product market,
the JVCKENWOOD Group will strengthen its OEM Business and promote the
development of CAROPTRONICS＊1 devices for their early commercialization.
108.4
7.9

Net sales and
operating income

107.3
6.5

114.0
94.4

Major Products

2.0

(Billions of yen)

-0.5
FYE 3/’11

FYE 3/’12

FYE 3/’13

FYE 3/’14

＊1 CAROPTRONICS: CAROPTRONICS is our proprietary name for in-car devices using optronics technology.

10

JVC KENWOOD Corporation

■ Net sales
ー Operating income

Car Audio, Car AV Systems,
Car Navigation Systems,
CD and DVD Mechanisms for
Car-Mounted Equipment

Outline of Business

A business domain in which Japanese corporations can exercise
their strengths, Car Electronics Segment must be of a high-quality
and reliable enough to cope with the special temperature, vibration,
and dust conditions inside vehicles.
The JVCKENWOOD Group has positioned the Car
Electronics Segment, in which both JVC and Kenwood
participated, as its largest business. We expect this business to
display the greatest effects of integration and have therefore
been pushing forward with efforts to integrate the
technological development, production, procurement, product
planning, and marketing functions in this business since
October 2007. Over many years, the two companies had
fostered acoustic, video, and car-mounting technologies as well
as product planning capabilities. We have focused on
developing new products by combining these with cuttingedge data compression and extension technologies as well as
user interface technologies. In addition, we have developed
marketing and sales strategies to make the most of the
Kenwood and JVC brands, each of which has different features.
At the same time, we have further enhanced our cost
competitiveness by integrating production and procurement.

Consumer Business
As a result, we have achieved the largest share in the European
and U.S. after-market with our Consumer Business for car
navigation and car audio systems leading to our large scale
composition. Unlike the overseas after-market, the main product
in the domestic after-market is car navigation systems. We are
also increasing our share and making success in the domestic
market with Saisoku-Navi, a flash-memory type of car navigation
system developed by integrating the technologies of the two
companies. Keeping an eye on the shift from the after-market to
the genuine product market, we are increasing orders received
for dealer-option products for automobile dealers and genuine
products for automobile manufacturers. We are achieving this by
strengthening the OEM Business and forming alliances with
partner corporations. We are also winning orders for CD/DVD
drive mechanisms for car-mounted equipment not only from
domestic makers, but also from European and U.S. car accessory
manufacturers. These orders are due to our industry-leading
product quality, merchandising capabilities, and cost
performance.
In the Consumer Car Electronics Business, we aim to expand
sales in the domestic market with a more focused efforts that
emphasizes the product features of car navigation systems with
specialized flash-memory products, equipped in the Saisoku-Navi
series, and cost reductions. In the overseas after-market sector,
in which the European and U.S. car audio markets are expected
to continue their moderate contraction, we will increase our
range and sales of display audio system products with enhanced
connectivity to smartphones and tap into emerging markets by
launching market-exclusive models.
＊2 Telematics:

OEM Business
In the OEM Business, we will aim to develop and massproduce
specially designed car navigation systems and display audio
systems to win new orders. We will also make efforts to
increase orders received for car navigation systems to be
converted to after-market models as dealer option products by
leveraging our strengths in the after-market and cooperating
with our partner corporations. In the segment for CD/DVD
mechanisms of car-mounted AV systems, we will boost the
massproduction of newly developed optical pickups through
cooperation with Shinwa International Holdings Limited, which
became a subsidiary in June 2013, by developing a new
customer base. At the same time, we will expand and
strengthen our businesses in emerging markets, especially in
the Chinese market, where rapid growth can be expected to
continue.
JVCKENWOOD succeeded all shares of JVCKENWOOD
Nagaoka Corporation (former TOTOKU Nagaoka Corporation)
through a corporate split (absorption-type split) from TOTOKU
Electric Co., Ltd. in July 2013. As a result, in-car electronic devices
and parts, which are provided as EMS by JVCKENWOOD
Nagaoka, have become a new business area of the Group,
contributing to an expansion of the OEM Business.

Task Force
Responding to a rapidly changing competitive situation in the
car electronics market, in July 2013 we launched a task force
for commercializing our innovative Advanced Driver Assistance
System (i-ADAS), which focuses on developing CAROPTRONICS
devices such as car-mounted cameras, high-definition head-up
displays, electronic meters, and electronic mirrors. Few
specialized manufacturers have such a range of in-house core
technologies covering the car electronics, audio, image-optics,
and sensing that are necessary to develop CAROPTRONICS
devices. Taking full advantage of our assets, we are
commercializing CAROPTRONICS devices at an early stage by
further promoting development. Looking ahead toward the
establishment of a car-mounted network environment, we set
up a joint venture with ZMP INC. (hereinafter referred to as
“ZMP ”) at the end of July 2013, a company that operates a
development platform for next-generation mobility, etc. The
aim is to develop a technology with various services for cars to
be linked to an open Internet environment and establish those
services as a business. In December of the same year, we made
capital investments in ZMP. Through this arrangement, we aim
to develop a key profit-generating business that will support
this company while promoting full-scale business development
in the promising telematics＊2 field by coordinating with ZMP,
which is ahead of the competition in the i-ADAS field, which is
expected to generate the medium- and long-term growth of
this company.

A newly coined word combining telecommunications and informatics, meaning the provision of information services in real time by connecting
mobile objects such as automobiles to communications systems like mobile phones.

JVC KENWOOD Corporation

11

Professional Systems
Segment

In order to provide radio, image pickup, video, and acoustic technologies to
professionals, we will develop systems that offer excitement and peace of mind to
people across the world.
92.5

Net sales and
operating income

3.6

93.5
3.2

4.1

91.8

3.6

97.0

Major Products

(Billions of yen)

FYE 3/’11

12

JVC KENWOOD Corporation

■ Net sales
ー Operating income

FYE 3/’12

FYE 3/’13

FYE 3/’14

Land Mobile Radio Equipment,
Video Surveillance Equipment,
Audio Equipment, Video Equipment,
Professional Display Equipment,
Medical Display Monitor Solutions

Outline of Business

The Professional Systems Segment consists of four businesses:
the Communications Business, which deals with land mobile
radio systems, license-free transceivers and amateur radio sets;
the Professional Systems Business, which handles security
camera systems, professional audio systems, professional video
cameras, etc.; the Imaging Systems Business, which mainly
deals with professional projectors; and the Healthcare Business,
which primarily handles medical display monitor solutions.

Communications Business

The Communications Business boasts the worldʼs 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 over many years
since the era of amateur radio equipment, with cutting-edge
digital and network technologies. Featuring a high overseas
sales ratio and high profitability, this business supplies highly
reliable professional radio devices and systems to the public
safety sector (police and fire departments), the public service
sector (electricity, water, and gas), and the private sector
(railways, buses, hotels, and plants) around the world. This
business is focusing on the market shift from analog to digital
equipment. Hence, it is moving ahead with the development
and sale of digital land mobile radio equipment and systems
compatible with the worldʼs various digital radio formats. It is
also optimizing its production system and strengthening its
sales networks.
This business will also continue to focus on expanding sales
of radio systems based on JVCKENWOODs proprietary
NEXEDGE® professional digital radio systems and the radio
system utilizing the network systems of Zetron, Inc., a U.S.
subsidiary handling radio communications systems. In addition,
we will focus on enhancing sales of digital radio systems for
public safety in North America, jointly with EFJohnson
Technologies, Inc., a professional wireless systems company
that became a wholly owned subsidiary in March 2014 and
handles professional radio systems conforming to Project 25
(P25), a digital radio format for the public safety market in
North America.

Professional Systems Business
The Professional Systems Business provides highly reliable,
professional-use video and audio equipment, developed and
manufactured by the Optical & Audio Segment based on
advanced image shooting, display, and acoustic technologies,
to such markets as electrical facilities, education and the public
sector, private corporations, and amusement facilities. While
boasting high market shares in the domestic electrical and
amusement facility markets, JVCKENWOODʼs security cameras
are highly rated for their features. These include sharp image
quality day and night, ease of operability and outdoor
installation as security cameras that are deemed to be among
the most effective in preventing crimes and ensuring people

remain safe and secure. Meanwhile, the Companyʼs
professional video cameras, which have been adopted by
multiple major broadcasting stations, are mainly increasing
their presence overseas.
To expand this Business, we will position IP security
cameras as core products to strengthen the Solution Business
including system design and implementation, expand sales of
cameras for broadcasting stations, and strengthen our
competitive advantages in the Professional Video Camera and
Security Camera Businesses, etc., by converting AltaSens, Inc.,
which handles CMOS censors, into a subsidiary. We will also
expand our Video Production Business, increase sales of 4K
video cameras, etc., and expand businesses by integrating
strategic products for emerging markets, radio communication
technologies, and video technologies, as well as ensuring
enhanced compatibility with smartphones, etc.

Imaging Systems Business
The Imaging Systems Business is working on the development
and sales of high-resolution home theater projectors and
projectors for wide-ranging uses in which super-high-resolution
is required, including planetariums, museums, flight simulators
and CAD design.
This business will also develop and sell high-resolution
image system projectors that meet a wide range of needs,
including those for art and medical applications that require
super high-resolution images and Olympics-related demand.

Healthcare Business
With regard to the Healthcare Business, after the conversion of
JVCKENWOOD Nagaoka (former TOTOKU Nagaoka) into a
consolidated subsidiary in July 2013, we are focusing on putting
forward wireless intercoms, security systems, and other
proposals for in-hospital communication by positioning the
medical display monitor solutions of JVCKENWOOD Nagaoka
as the core products.
This business will continue to enhance solutions for the
pathological and diagnostic fields, as well as commercialize
products in the remote medical field by leveraging the
elemental technologies of imaging, cameras and radios that
JVCKENWOOD has developed.

Task Force
We will promote the development and commercialization of
professional multimedia radio systems, including moving
images and large-capacity data communications services, such
as systems for firefighting, medical treatment and emergencies,
by accelerating initiatives for the development and
commercialization of public safety wireless broadband systems,
jointly with AIRBUS DEFENCE AND SPACE, with which we
formed an alliance in January 2014.

JVC KENWOOD Corporation

13

Optical & Audio
Segment

With its sights focused on shifting core growth areas from consumer businesses to
professional systems, the JVCKENWOOD Group develops next-generation products
and achieves their early commercialization by integrating development and
production resources and enhancing competitiveness.
1.8

1.3

0.9

-0.8

Net sales and
operating income
(Billions of yen)

77.5

JVC KENWOOD Corporation

74.7

Major Products

100.1

FYE 3/’11

14

87.1

■ Net sales
ー Operating income

Camcorders, Home Audio,
AV Accessories, Projectors, Displays,
Optical Pickups for Car-Mounted Equipment
FYE 3/’12

FYE 3/’13

FYE 3/’14

Outline of Business

The JVCKENWOOD Group has been allocating development
and production resources for optical devices and audio systems
to the Home & Mobile Electronics Business for consumer
electronics and the Professional Systems Business for
professional-use system products. Meanwhile, the Group has
seen a need to integrate the development and production
resources of the Consumer- and Professional Systems Business
to enhance competitiveness, and shift the core growth area
from the Consumer Business to the Professional Systems
Business. As a result, it reviewed the business segment
structure on June 25, 2013.
Following the revision, the Optical & Audio Segment
consists of the Audio Business, under which development and
production functions for consumer- and professional-use audio
systems are integrated, the Imaging Business, under which
development and production functions for consumer- and
professional-use optical devices are integrated, and the Image
& Optical Device Business, which oversees optical pickups for
car-mounted equipment and optical devices such as projectors.

Audio Business
In the Audio Business, we aim to accelerate the narrowing of
sales areas and products and concentration on high valueadded products, and embodying network devices and designspecific products. The aim is to focus on businesses that
demonstrate the strengths of JVC and KENWOOD brands.
High-resolution sound replay models, which were introduced
to the Japanese market from the current business term, have
been making steady progress. Moreover, by developing digital
amplifiers from the series for professional-use, we aim to
extend the lineup of professional-use audio products that have
achieved high sound quality, high reliability, and energy
savings.
Taking the popularization of smartphones and similar
terminals as another business opportunity, in the headphones
sector of the AV accessory segment we are increasing our
presence in major markets around the world through rapid and
flexible development and production systems, as well as an
extensive product range that leverages the Group's unique
advanced acoustic and noise cancellation technologies. We will
also broaden the lineup of our flagship models and special
models for emerging countries, and expand sales areas.

Imaging Business
In the Imaging Business, which operates in a maturing
consumer camcorder market, we are shifting our focus to
proposal-based, high value-added products. Meanwhile, we
have succeeded in maintaining a strong presence in principal
markets around the world. We have achieved this by developing
high value-added products that meet the needs of professional
and niche markets, including camcorders compatible with the
4K2K imaging infrastructure, and hybrid cameras.

Image & Optical Device Business
In the Image & Optical Device Business, we have made the
most of our advanced video, cutting-edge image processing,
and 3D technologies to commercialize home projectors and 3D
projectors based on our proprietary Liquid Crystal on Silicon
(LCOS) micro display technology, as well as the next-generation
of image devices such as HUD, by launching the full-scale
production of Pico devices. We are also launching projectors
compatible with 4K2K and 8K4K, which are regarded as the
culmination of high-definition imaging technology, in order to
expand our businesses in global markets with our advanced
technologies and products. Furthermore, we have expanded
the range of new image and optical products that are unique
to JVCKENWOOD by incorporating highly reliable precision
optical assembly technologies accumulated from pick-ups in
the Car-Mounted Equipment Business.

Accelerating shift of resources to growth areas
For the future, we will accelerate the shift of resources from
existing businesses to next-generation businesses, specifically,
from the Traditional Consumer Business, which is expected to
experience a sharp contraction, to the growing Car-Mounted
and Professional Businesses. We will achieve the early
commercialization of next-generation products and promote
the development of technologies our Consumer Business has
developed for application in the rapidly expanding nextgeneration products, including car-mounted cameras, highdefinition professional cameras (8K4K), high-definition security
cameras, professional audio products, and professional
projectors.

JVC KENWOOD Corporation

15

Entertainment Software
Segment

We will expand activities in an effort to become a total entertainment business and
open up new B to B domains.

2.2

Net sales and
operating income

42.9

2.0

1.2

40.9

36.4
0.6

36.7

Major Products

(Billions of yen)

FYE 3/’11

16

JVC KENWOOD Corporation

FYE 3/’12

■ Net sales
ー Operating income

FYE 3/’13

FYE 3/’14

Planning, Production and Sales of Audio and
Video Content including CDs and DVDs,
Production and Sales of CDs and DVDs
(prerecorded)

Outline of Business

The Entertainment Software Business consists of the Content
Business, which has as its core Victor Entertainment, Inc.＊ and
Teichiku Entertainment, Inc., and the OEM Business that
specializes mainly in the production of CDs, DVDs, and BDs.
The second and fourth oldest record companies in Japan,
Victor Entertainment and Teichiku Entertainment, respectively,
have continued to deliver excitement to people through artists
and music for over 80 years. In 2011, Victor Entertainment
relocated all its previously far-flung group companies to a new
office in Shibuya, Tokyo, thereby increasing operational
efficiency and enhancing the Groupʼs overall strength.

Content Business
The Content Business is endeavoring to enhance its core Music
Business in two ways: by responding to changes in the
entertainment industry environment, such as the diversification
of user preferences and the popularization of Internet and
mobile phone distribution as a result of improved
infrastructure; and by making enterprising investments in
talented new artists to discover and foster such artists and
promote a partnership strategy to create hits. Also, in
anticipation of the popularization of the online music
distribution market featuring high sound quality, in September
2012, we started initiatives for “high-resolution” distribution,
which features a larger information volume than CDs and high
sound quality. We set up a high-resolution online music
distribution site in February 2014 and are pushing forward with
activities to create sound sources under contract for other
companies.

OEM Business
The OEM Business fully supports customers and meets their
requests, from the production of content to the creation of
package media. To cope with changes in the environment of
the software package market, including CDs and DVDs
centering on overseas markets, we transferred the shares of
JVC America, Inc., which engages in production and sales of
CD/DVD disks, in June 2014.
Further, we are promoting the realization of total
entertainment by enhancing B to B as well as Artist- and
Anime-Related Businesses to expand its business areas.

B to B Operations
In its B to B operations, Victor Entertainment has made deep
inroads into the B to B world, a domain different from its core
business of music and video content production and sales, and
has engaged in new business services through which expertise
in Entertainment Software Business marketing and promotion,
as well as in music and video content production, are turned
into hits and utilized in different industries and business
categories. In December 2012, Victor Entertainment entered
the Space Sound Production Business on a full-scale basis by
launching its KooNeTM Space Sound Design Solution, which
uses a high-resolution sound system, and introducing the
system to many corporate offices, large commercial and
entertainment facilities, stores, hospitals, libraries, business talk
corners, condominiums and residential facilities, etc. We will
continue to push forward with initiatives with corporations and
organizations that seek the creation of functional space that
matches purposes, including healing, mental care, special
presentations and the improvement of productivity of
corporations.

Artist- and Anime-Related Businesses
With regard to Artist-Related Businesses, we will enhance
events and concerts, as well as the sales of goods and property
rights-based businesses, such as music publishing. We will also
continue to expand Anime-Related Businesses and strive to
enhance the partnership strategy to further expand our
business domains in other Asian countries, not just Japan.
Going forward, as the content business of the
JVCKENWOOD Group, the Entertainment Software Segment
will aim to expand its Total Entertainment Business, with music
as its core, in other Asian countries. The segment will also strive
to enhance comprehensive capabilities of the Group through
the expansion of new B to B domains by making the most of
music and video technologies and know-how.

＊ Victor Entertainment, Inc. changed its official company name to JVCKENWOOD Victor Entertainment Corp. in April 2014.

JVC KENWOOD Corporation

17

Special FeatureⅠ｜Creating excitement and peace of mind for the people of the world

1 ‌Achieving the mobility society of the future through
innovation and creative thinking
– Improving comfort and safety

▁ ▂ ▃ ▄ ▅ ▆ ▇ Issues affecting our motorized world
Motorization and transport infrastructure development have brought huge benefits to people, but they also contribute to
about 1.2 million deaths and over 50 million injuries every year from traffic accidents worldwide. As a result, improving
vehicle safety has become an important social issue.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Trend of increasing legislation
Following the deaths of many children in store parking lot accidents across the United States, the installation of a rear-view
camera and monitor is becoming mandatory to reduce accidents. Vehicle-to-vehicle and road-to-vehicle communications to
establish a safe driving support system and the operation of autonomous vehicles on public roads are also being permitted.
A global trend is under way to create a safe automotive environment that ensures peace of mind for road users. For
example, emergency notification (e-Call) systems using mobile phone communication networks are being spotlighted in
Europe. In Japan, automatic brakes and lane-departure warning systems have been added to items assessed under the Japan
New Car Assessment Program (JNCAP).

▁ ▂ ▃ ▄ ▅ ▆ ▇ From Car Electronics to CAROPTRONICS＊1
JVCKENWOOD has created a new business area called CAROPTRONICS, which combines our technological advantages in
Car Electronics and Optronics. It enjoys major shares 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 period
with its video cameras, while its high-definition projectors are also 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 has started to focus
on developing CAROPTRONICS devices (e.g. in-car cameras, high-definition head-up
Billions of yen
1,200
displays (HUDs), electronic dashboards, and electronic mirrors) and telematics-related
＊3
1,000
systems and services to enhance road safety and ensure peace of mind.
800
The CAROPTRONICS device market is expected to grow further and generate
revenues of over 1 trillion yen by 2020. As a maker with a wide range of integrated
600
CAROPTRONICS core technologies, JVCKENWOOD will further apply its strengths to
400
promote development and early commercialization.
200
＊1: Named by JVCKENWOOD for in-car devices using opto-electronics technologies. (Trademark registration pending in

0

Japan, the United States and elsewhere)
＊2: i-ADAS is a trademark of JVCKENWOOD and means an innovative Advanced Driver Assistance System.
＊3: Telematics: A term created by combining telecommunications and informatics.

Car Electronics

FYE 3/’15 FYE 3/’16 FYE 3/’17 FYE 3/’18 FYE 3/’19 FYE 3/’20 FYE 3/’21

CAROPTRONICS
Head-up display (HUD)
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 your eyes away from the road to a car
navigation screen.

Navigation
system

In-car VGA
camera

Optronics (Opt Electronics)

Electronic dashboard
Easy to read due to intuitive data
transmission with flexible display.

In-car HD camera
Electronic mirror

LCOS projector

18

JVC KENWOOD Corporation

Video camera

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.

Special Feature Ⅰ

▁ ▂ ▃ ▄ ▅ ▆ ▇ Comprehensive business development targeted for i-ADAS
JVCKENWOOD provides a consistent system that processes incoming information for transmission to drivers, including
sensing devices such as cameras and sensors, ADAS systems for vehicle detection, and display interfaces for transmitting
information to drivers, by making proposals to automakers and parts makers and conducting joint technical development.

情報の入口から出口まで一貫したシステムを実現します。
Incoming
information

Information
analysis

Sensing device
Omni-directional visibility Wide dynamic range

Night vision

In-car Hi-Vision CMOS sensor

ADAS system

Display interface

Vehicle detection

Display device

Lane departure warning

Voice recognition

Traffic sign detection and lane departure warning
Lane
departure warning

Outgoing
information

Pedestrian detection using an infrared camera
Infrared camera
Traffic sign

Lane departure warnings and traffic sign
information are transmitted to the driver via
HUD or display device installed in an
electronic dashboard.

Detects pedestrians and objects using a
far-infrared camera. The driver is alerted if
pedestrians and objects that are not easily
visible under nighttime driving conditions are
detected.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Collaboration with venture company
JVCKENWOOD has agreed to establish the joint-venture company Cartomo Inc. with ZMP Inc. (Bunkyo-ku, Tokyo), which is
a leading company specializing in robot technology-based telematics and autonomous driving technologies, and to jointly
launch an in-car CAN＊4 cloud platform-related business using mobile telecommunications. Together with a dynamic venture
company such as ZMP Inc., JVCKENWOOD will accelerate development of telematics devices and services and also use the
expertise made available in the development of JVCKENWOOD's CAROPTRONICS devices.
Cartomo Inc. aims to create a new and open automotive culture. It holds smartphone application idea contests and
other events inviting everyone who is
interested to participate.
Stereo camera

Laser range sensor
(Right front)

＊4 Controller Area Network (CAN): Network specifications to

connect electronic circuits and devices inside equipment
such as automobiles

Millimeter-wave
radar

Laser range sensor
(Left front)
Ⓒ2014 ZMP Inc.

In-car CAN
speed, pedal,
steering angle,
etc.

JVC KENWOOD Corporation

19

Special FeatureⅠ｜Creating excitement and peace of mind for the people of the world

2 Contribution to public safety

▁ ▂ ▃ ▄ ▅ ▆ ▇ Operations in public safety sectors where

urgency is critical

In the operations of the public safety sectors serving to protect our daily lives, such
as the police, and fire departments, and in emergencies, land mobile radio systems
are used and their unique infrastructure enables communication even in situations
where mobile phones are disabled. In these public safety sectors where urgent
communications and actions are in general highly critical, land mobile radio systems
require high credibility for fast and accurate transmission of information.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Changing needs in land mobile radio systems
With demand for the faster and more accurate transmission of information, there has
been increasing need for a professional broadband radio system in recent years, as it
enables the transmission of images and video through 3G or 4G lines or broadband
(LTE) connections, replacing a conventional narrow band device centered on voice
communications.
With a professional broadband radio device, a fire department field site
would become able to promptly transmit images of the fire situation and speed up
firefighting activities, while an emergency site would be able to send images of a
patient's condition and biological information to the hospital in advance to facilitate smooth admission. The device would
also help police to accurately transmit status in tracking criminals and license plate information.

▁ ▂ ▃ ▄ ▅ ▆ ▇ JVCKENWOOD's solid performance in broadband systems
JVCKENWOOD's land mobile radio systems have been highly rated because of their reliability and outstanding technology
combining accumulated know-how and cutting-edge digital and network technologies. They are used in public safety sector
operations, including those of the police and fire departments, and are involved in responses to global emergencies.
In the development of broadband professional radio systems, JVCKENWOOD ensures that its products comply with
the digital radio standards of each country. For example, for co-development the Company concluded a business alliance
contract with AIRBUS DEFENCE AND SPACE (headquartered in France) of the AIRBUS Group, a major aerospace company.

Systems to protect firefighters' lives
In the United States, nearly 100 firefighters a year are reportedly killed in the line of
duty as a result of suffocation, external injuries, heart attacks, and other conditions
arising in rescue and firefighting operations every year.
Drawing on its Group's strength of providing public safety devices equipped with
wireless technology, JVCKENWOOD is proposing a structure in which onsite rescue
and firefighting activities are transmitted to headquarters on a real-time basis and
adequate instructions are provided as feedback.
The Company is focusing on developing comprehensive systems incorporating
broadband networks, sensor technology, information analysis techniques, cloud
technology, etc., thereby enabling the reduction of the operational burden on
firefighters and the reporting of firefighters' physical condition, for example, signs of a
sudden heart attack or other illness, to achieve safer rescue and firefighting.

Systems to protect firefighters’ lives
Cloud computing
system

IP Network

Firefighters

Wi-Fi Direct
Bluetooth
Instruction system
(Image)

Professional
radio system
(Image)

・Multi-functional helmet system
・Biological information
monitoring system

Cyber-Hospital
JVCKENWOOD's broadband systems are also expected to be applied to public remote
medical support systems (i.e. cyber hospitals). For example, with broadband systems,
serious natural disaster sites, accident sites, and those involved in nursing care at
home can be linked to university hospitals and medical institutions, thereby enabling
hospitals to obtain patients' information more accurately and leading to faster and
more appropriate diagnosis and medical treatment, saving more people's lives.
Shinkoyasu District, Yokohama City, where JVCKENWOOD's headquarters is
located is within the international strategic comprehensive special zone (i.e. special
zone of medical treatment) designated by Kanagawa Prefecture, Yokohama City
and Kawasaki City, and the Company is engaged in life innovation work through its
collaboration in medical care and engineering.

20

JVC KENWOOD Corporation

Cyber-Hospital (Image)
Report on the status
of patients

Disaster site

Public broadband
University hospital, etc.
Indicate proper treatment
Home care

Special Feature Ⅰ

to the medical field for mammography
3 Contribution
‌
image diagnosis
▁ ▂ ▃ ▄ ▅ ▆ ▇ Contribution to early detection

of breast cancer

Incidence rates of breast cancer are reportedly the highest among cancers.
Breast cancer symptoms appear in a wide range of ages, from patients in
their late 30s and up, compared with gastric cancer or colorectal cancer
whose incidence rates sharply increase from the 60s. Although early
detection and treatment is critical for breast cancer, the breast cancer
screening rate in Japan is low at roughly 30%, and the lack of disease
awareness activities is one factor causing the low screening rate.

Dr. Michael Linver, Co-Director of Mammography at the
Breast Imaging Center in the United States

▁ ▂ ▃ ▄ ▅ ▆ ▇ Healthcare Business
JVCKENWOOD acquired the Information Equipment Business, including the Medical Display Monitor Solutions and car
electronics EMS, of TOTOKU Electric Co., Ltd. and acquired all the shares of TOTOKU Nagaoka Corporation, a consolidated
subsidiary of TOTOKU Electric Co., Ltd. With these acquisitions, JVCKENWOOD released display devices for use in medical
imaging and mammography imaging in July 2013.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Development of mammography monitors
Unlike monitors for general use and personal computers, etc., the mammography monitors used for
diagnosing breast cancer are required to have high luminosity, ultra-high resolution, and film-like visibility in
order to enable easy detection of cancer and reduce stress on users' eyes arising from long hours of use.

▁ ▂ ▃ ▄ ▅ ▆ ▇ High performance required of medical monitors

and their proprietary technology

JVCKENWOOD's mammography monitors, developed with proprietary
technology (i.e. independent sub-pixel drive technology), provide
outstanding high-resolution capability, three times greater than the normal
high-resolution performance, and produce 15 megapixel imaging, far greater
than the 5 megapixel imaging recommended for use in mammography
monitors. Thus JVCKENWOOD products contribute to reducing the
operational burden on doctors engaged in image diagnosis, and at the same
time improve screening ability for early detection of breast cancer.
Through these contributions, the Company promotes digital
mammography examinations both in developed countries as well as
countries at the Base of the Pyramid (BOP).＊
＊ The Base of the Pyramid refers to developing countries and regions, and its combined population is

reportedly about 4 billion.

Independent Sub-pixel Drive Technology
Technology delivers ultra-high-resolution images by operating
independent sub-pixel drive (display), based on details of
information input on the screen (Patent No. 4773522).

Words from a mammary specialist
I strongly hope to reduce the number of patients who die from
breast cancer. I am pleased to see the smiling faces of patients
who survived thanks to early identification of breast cancer.
The challenge that lies ahead is to increase the number of
medical specialists capable of detecting early stage cancer and
saving patients' lives, and to establish a system enabling many
people to take examinations without anxiety.
Having high-performance monitors is an important item to
meet this challenge.

Dr. Tokiko Endo: Chief Director of the Japan Central Organization
on Quality Assurance of Breast Cancer Screening, NPO Corporation,
and Medical Director of Breast Oncology Department of Higashi Nagoya National Hospital

JVC KENWOOD Corporation

21

Special Feature Ⅱ｜Creating excitement and peace of mind for the people of the world

with four companies characterizing space
1 Collaboration
‌
and the five senses

With its corporate mission of “creating sound to move people emotionally,” JVCKENWOOD Victor Entertainment
Corp. of the JVCKENWOOD Group has launched and participated in a project to study and propose ways of
improving spatial quality, focusing on three perspectives — human beings, time, and space — in collaboration with
companies that have business expertise in the fields of the other senses — smell, sight, taste, and touch. Through
this project, we aim to establish and develop a spatial acoustic design business called KooNeTM, which will appeal
to the sense of hearing, one of the five senses. So far, KooNeTM has been creating acoustic spaces for healing,
mental care, spatial performance, and increased corporate productivity, etc.
The project was named the KANSEI Projects Committee in which the five collaborating companies worked
together and pursued the theme the “How do people feel in these kinds of created spaces? ” in their own
specialized fields. Drawing on their technical know-how and expertise in the five senses, they collaborated on
work which presented a study of ideal spaces for users through a comprehensive analysis and proposed new ideas
of comfortable atmospheres, feelings of relaxation and creativity for corporate and social needs.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Participating companies
Responsibility for
senses

Company Name

Summary of Business

Sense of Hearing

JVCKENWOOD Victor
Entertainment Corp.

A total entertainment company dealing with the whole range of business, from production through sales of
music and video software programs, which is diversified and unique beyond the classification of traditional
Japanese music and Western music.

Sense of Smell

Air Aroma Japan

As a sales agent of Air Aroma International in Australia, the Company promotes its brand of Scent Marketing
to corporations, with the idea of using scent as a corporate brand, and provides set-up and solutions.

Sense of Taste

Onodera Corporation

The Company, which used to be an exporter dealing with fishing vessel machinery and fishery products,
opened coffee shops in Kesennuma with the brand names Anchor Coffee and Fullsail Coffee.

Sense of Touch

KOMA Co., Ltd.

A furniture company which primarily deals with design and manufacturing of custom-made furniture. Its
corporate slogan is to manufacture products with passion and belief to make everyone happy. The Company
has participated in some collaborative work with globally-known creators.

Sense of Sight

Design Office LINE Co., Ltd.

A company with an advanced idea of creating free and “movable space” in architecture and interior
decoration. Initiated the project ECODOLINE in its aim to produce new things.

Case Study
Reading rooms (2F) of the Higashinada Library in Kobe
City (September 2013)
The main purpose of creating comfortable spaces
with sound and scent using KooNeTM and aromas is to
enhance the libraryʼs existential value as a place where
people can gather and communicate in a space where
library users can also focus on reading or relaxing inside
the library. According to library personnel, the numbers
of library users and books lent out have steadily increased
because more people have stopped by the library, which
is at a convenient location. These comfortable spaces are considered to have become part of the libraryʼs added value.
[Comment by Mr. Hiroshi Hosokawa, General Manager of Education and Environmental Planning Division, Toshokan Ryutsu Center Co., Ltd.]

22

JVC KENWOOD Corporation

Special Feature Ⅱ

of high-resolution images
2 Projection
‌
by professional-use projectors
Creating unforgettable images, producing images so real that
audiences feel like they are actually there, even forgetting the
existence of the screen. The images seem to actually physically
appear in front of them, and they fall into an absorbed feeling as if
being wrapped up in some mysterious atmosphere.
With an increasing need for high-resolution imaging,
JVCKENWOOD is developing professional-use projectors which
produce outstanding high-definition images that have not been
seen before and will impress audiences.

▁ ▂ ▃ ▄ ▅ ▆ ▇ The COI-T research with the objective of creating “excitement”

awakening all five senses

During the exhibition The Prayer of Beppin–Horyuji Kondo Mural Painting, which was
held at the University Art Museum of Tokyo University of the Arts from April 26 to June
22, 2014, the Center of Innovation–Trial (COI-T) research group gave a presentation on
the results of the study and adopted the special model displayed in outstanding highresolution images that JVCKENWOOD had researched and developed based on its
D-ILA8K＊1 professional projector.
This exhibition was held with the objective of presenting the results of the COI
STREAM (Innovative creation program) research project, which is sponsored by the
Ministry of Education, Culture, Sports, Science and Technology, and the Japan Science
and Technology Agency. The project, as a part of the program, gave a presentation on
the research results at Tokyo University of the Arts. JVCKENWOOD participated in the
COI-T, playing the role of project leader, and delivered the research results, in which
the mural paintings of Horyuji Kondo, lost to a fire in 1949, were reproduced to their
actual size. Other art work related to Horyuji Kondo was also displayed in high-resolution
images using JVCKENWOODʼs professional D-ILA8K projector.
The adopted model was created by customizing the product, the D-ILA8K projector
equipped with JVCKENWOODʼs original “e-shift”＊2 technology suitable for displaying
a work of art, and combining JVCKENWOODʼs distinguished imaging and optical technologies and sophisticated printing
techniques by the Tokyo University of the Arts. The projection produced by the adopted model has achieved magnificent
high-definition images that can be achieved only by using the JVCKENWOOD 8K Projector.
Beginning with the presentation of the research results in the exhibition, JVCKENWOOD continues to actively participate
in the COI-T project to create “excitement” awakening the five senses, by incorporating the art and science technologies that
Japan is proud of.
＊1: The name of JVCKENWOODʼs in-house developed Liquid Crystal on Silicon (LOCOS) display device
＊2: Technology used for the small-sized, super high-definition projector that JVCKENWOOD developed jointly with Japan Broadcasting Corporation (NHK) and NHK Engineering

System, Inc.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Expanding JVCKENWOOD technologies to meet broader needs for

large high-definition images in industries

Receiving high praise on its established image and optical technologies from professional projector markets, JVCKENWOODʼs
D-ILA 4K2K projectors were adopted in planetariums, including the Konica Minolta Planetarium “Tenku” in Tokyo Sky Tree Town,
the planetarium-Science Egg of the Tamarokuto Science Center, and in the flight simulators of airline companies. JVCKENWOOD
will further expand its business line for projectors to meet broader needs for large high-resolution images in industry.

Konica Minolta Planetarium “Tenku” in Tokyo Sky Tree Town

Flight Simulator

JVC KENWOOD Corporation

23

Global Brand Strategy
In recent years, the JVCKENWOOD Group has been increasingly employing brand strategies
to impact awareness of its brand portfolio and understanding of its business segments.

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

JVCKENWOOD aims to be a company widely trusted by society through delivering superior value
for our shareholders and customers all around the world. We strive to create excitement and
peace of mind as a global manufacturer in electronics and entertainment products and services.

The JVCKENWOOD Group is comprised of a well- respected portfolio of brands that have set the pace for
electronics and entertainment for more than 80 years. These brands are positioned across four global
business segments: Car Electronics, Professional Systems, Optical & Audio and Entertainment Software.

Brand Portfolio

JVC is highly recognized in the audio video industry as a leading brand in
video cameras, video projectors,
audio equipment and car multimedia
systems.

Renowned for its sound quality and
technical expertise, KENWOOD is a
global leader in car electronics, radio
communication systems and audio
equipment.

TOTOKU is a global leader in medical
image displays and high- definition
display technologies applied in wide ranging products from consumer
display systems to industrial display
systems.

EFJohnson has a capability to respond
for a wide range of business area
including police, firefighters,
emergency medical service and military,
and provides, in particular, professional
radio system focusing on P25 standard.

ZETRON is lauded for an extensive
track record in the fields of
professional radio communications
command, control systems and radio
communications network systems.

AltaSens is a global leader in the
development and design of CMOS
image sensors for full-high vision and
high image quality videos.

ENTERTAINMENT で

Victor Entertainment has a long
history of more than 85 years as a
comprehensive entertainment
businesses, ranging from music/video
production to event hosting.

Teichiku Entertainment has been a
well respected producer and
distributor of traditional Japanese
music and video entertainment
products since 1934.

＊The above brands and trademarks may not be used in certain countries.

24

JVC KENWOOD Corporation

TE105% 大

Shinwa is a global brand of plastic
components such as in- car AV
mechanisms and equipment, as well
as image, audio, and communication
devices.

Global Brand Strategy

Global brand presence through motorsports
⃝Official Supplier of McLaren Mercedes

KENWOOD has been developing a state - of-the - art radio communication technology, providing the radio system and
sending engineers as an official Supplier of McLaren Mercedes F1 team for 23 years since 1991, in sympathy with their
sincere approach of keep pursuing the best as well as their remarkable achievements.
Official Supplier means the partner company supporting the team technically, not like a sponsor just paying money
for their branding. KENWOOD and McLaren are the relation of colleague fighting together for the victory in the
battlefields of Grand Prix, beyond the relation of Racing team and Sponsor.
In motorsports, radio systems are vitally important for race strategy. Sometimes it can make the difference between
being on the top of the podium or not on the podium at all. Races cannot be won without a radio system.
The NEXEDGE® Series, which has been introduced starting in the 2014 season, not only demonstrates excellent
reliability and performance, even within severe environments in the top level of motorsports, but also offers key
features such as voice securing, a noise suppressing function, and wide communication range based on digital signal
correction technology and narrowband sensitivity enhancement.
The NEXEDGE® based system for the Team is not able to show its excellent performance at the maximum without
experienced KENWOOD support engineers. They are fighting as a member of the McLaren Mercedes F1 Team.

⃝Global Sponsorship Activities

⃝Domestic Supplier Activities

Among measures to increase brand awareness,
JVCKENWOOD sponsors the FIA World Touring
Car Championship, which is held at venues in
various countries around the world.

JVCKENWOOD supplies Super GT,
which is Japan's top motorsports
series, with onboard broadcast
cameras.

JVC KENWOOD Corporation

25

Corporate Social Responsibility (CSR)

About our environmental activity
Environmental Policies
To preserve global environments and resources and prevent pollution, we will
manage our business activities, our product development, and our services through
ongoing improvements with a full awareness of our environmental impact.
1. Prevent global warming by promoting the reduction of CO2 emissions throughout the product lifecycle, including
business activities, by developing technologies and products that reduce environmental impact.
2. Use limited global resources effectively to create a sustainable society by reducing the resources we use within a
framework of 3R activities and progressive usage of eco-friendly materials.
3. Manage chemicals that affect the world's environment and biosphere, continue reduction in consumption, and
switch to eco-safe materials.
4. Recognize the effect on biodiversity of all business activities, product development, and services to
comprehensively reduce our environmental impact in harmony with the natural environment.
5. Comply with environmental legislation and other requirements with which we agree.
6. Educate employees on the environment to cultivate greater environmental awareness.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Through interactions with the earth
We actively interact with the global environment through regionally based activities (e.g. reviving underdeveloped woodland
and conducting cleanup activities). Through these regional activities, we have renewed our awareness of the global
environment and corporate citizenship.
The distinguished contributor designation for regional environmental preservation was awarded to JVCKENWOOD
by the Minister for the Environment. This designation is awarded to persons and organizations that attain distinguished
achievements over many years for promoting environmental preservation.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Artwork class offering

nature-related education

We held a summer artwork class at Laforet
Shuzenji in collaboration with Mori Trust
Hotels & Resorts Co., Ltd. Since “ Forest Notes”
(a wireless active speaker) was used for this
class, students were able to learn about
photosynthesis while listening to forest sounds.
Then they made crafts according to their own
taste, using materials from the forest.
Everyone was able to appreciate the
blessings of the forest, get in touch with the
forest, feel the smell of the forest, and listen to
the sounds of the forest.

26

JVC KENWOOD Corporation

Corporate Social Responsibility (CSR)

▁ ▂ ▃ ▄ ▅ ▆ ▇ Camcorder for moms (GZ-N1) - It's 30% lighter than before
This is the industry's first antibacterial video camera produced based
on the opinions of mothers.
A strap instead of an ordinary belt-type grip and a built-in
tilt stand allow the use of this camera at children's eye-level. This
camera is 40% smaller and 30% lighter than the previous GZ-E565
model. Users can save more beautiful videos of happy times spent
with their children for a longer time.

▁ ▂ ▃ ▄ ▅ ▆ ▇ In-car speaker with a dragonfly wing structure＊1
Dragonflies flit freely under the autumn sky.
They fly in a gentle breeze or even in relatively strong wind without having to worry about wind speed.
Dragonflies have strong, light-weight, and thin wings, which are the same characteristics required for Speaker
diaphragms The dragonfly wing structure shows a fractal pattern＊2, which is also observable in various cases in the natural
world.
We have applied this pattern to speaker diaphragms.
By utilizing the lessons we learned from the natural world, we have created lighter and stronger diaphragms. Then, after
restricting the divided vibration, we successfully realized clear, less distorted sound with less resonance.

Dragonfly wings

Artwork

Diaphragm created

Smaller peaks and dips
at middle and high tones
(2 to 15kHz)

＊1 Patent publication number: 2011-139431

This diaphragm has been adopted by RS Series including KFC-RS171.

＊2 A word created by Benoit Mandelbrot, a French mathematician, in 1975. This word is derived from “fractus,” a Latin adjective meaning “regular fragments.” Many objects

with the characteristics of fractals exist in the natural world.

JVC KENWOOD Corporation

27

CSR

Connection with society
▁ ▂ ▃ ▄ ▅ ▆ ▇ VICTOR STUDIO held an event at Yokohama OTOMATSURI 13

(Sound festival)

Yokohama OTOMATSURI was held from September 20 to
November 30, 2013 at various cultural, tourist and other
facilities in Yokohama City. VICTOR STUDIO joined this
festival as one of the Gold Sponsors. This music festival
generated an economic ripple effect of about 15.2 billion
yen with about 3.8 million visitors in total.
One of the co-sponsored events at this festival was
the “ Victor Studio Experience 2 Days in Yokohama.” For
this event, VICTOR STUDIO's engineers held lectures on
topics such as recording and mastering, and explained
the process of creating pieces of music, giving trial
listening opportunities to participants. Post-lecture survey
results showed that over 90% of students gave a score of
4 points or higher (out of 5 points), indicating their level
of satisfaction with the event. We are pleased to have
been able to give some excitement to the many people
who attended these lectures.

▁ ▂ ▃ ▄ ▅ ▆ ▇ GEMBA WALK (factory tour)

by university students
in the neighborhood

In our factory in France, we held “GEMBA WALK (factory
tour)” as part of our exchange activities in collaboration with
universities in the neighborhood. We are pleased that students
who participated in this event were able to deepen their
understanding of factory operations and tasks by having
opportunities to join the factory tour and ask questions. After
the “GEMBA WALK (factory tour),” our employees held a
meeting with them, asking for their proposals such as tips for
improving operations and new ideas. Many opinions were
vigorously exchanged at this meeting, which also offered our
employees good opportunities to become aware of new ideas. Our factory in France takes a positive stance for cooperative
activities between industry and the academic world, building cooperative relationships with the region.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Cooperation for the filming of
“REC4”

The “REC” horror movie series (three films) were filmed in Gran
Canaria Island, Spain. They are newsworthy movies which
were shown at the Tokyo International Film Festival and the
Venice International Film Festival. JVCKENWOOD's wireless
devices were used in various scenes of the latest movie “REC4”
(to be released in October 2014). Among others, when the
crime scene was shot on ship, a soldier used JVCKENWOOD's
transceiver to contact his fellow soldier. This transceiver is
a highly durable, waterproof product satisfying the military
standards of the United States Department of Defense. When
we saw the soldier putting this transceiver on his shoulder, we
thought that we could be of some help to create a realistic image.

28

JVC KENWOOD Corporation

Movie scene in the middle of filming “REC4”

Corporate Social Responsibility (CSR)

▁ ▂ ▃ ▄ ▅ ▆ ▇ Ski team sponsorship
In Canada, there are vast ski hills where many skiers visit from
around the world, and skiing is one of the most popular sports
in this country.
As a radio communication equipment supplier for the
Canadian National Ski Teams (Alpine Canada) that include
Alpine Ski Team, Para-Alpine Ski Team and Cross-Country Ski
Team, JVCKENWOOD cosponsored the ski championships held
in Canada and other countries from December 2012 to March
2013. In the Sochi 2014 Olympic Games, several skiers
represented Canada.
Through such sponsorship, JVCKENWOOD has maintained
sound relationships with Canada to promote its sports and culture.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Contribution to regional

society

To maintain regional relationships in Thailand, factory
employees in this country have given scholarships
and school supplies to local elementary school
students, and also made charitable contributions for
a long period of time. For example, they have given
money, rice, used clothes, etc. to the disabled. These
employees will be continuously conducting regionally
rooted activities, and through these activities, JVCKENWOOD aims to remain a regionally trusted company.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Support activities for rugby team
In Italy, sports are very popular. Considering this national character,
JVCKENWOOD has continuously sponsored Italian teams and
athletes.
In 2013, JVCKENWOOD became a sponsor of Petrarca Padova,
which belongs to Italy's premier rugby league and won the 20102011 Eccellenza Championship. Through such sponsorship,
JVCKENWOOD has maintained sound relationships with Italy to
promote its sports and culture.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Support activities for disaster

Scene of Petrarca Padova game

recovery

In the U.S., JVCKENWOOD has conducted various activities
depending on its objectives or those of its employees.
Many countries suffered from natural disasters in 2013.
JVCKENWOOD solicited monetary donations for the restoration of
damaged areas and for disaster victims in need of financial support.
Picture images
・Restoration support for areas stricken by Typhoon Haiyan in the
Philippines that caused 2,300 deaths
・Restoration support for damages caused by Moore tornado that struck some areas in Oklahoma
・Contributed about 14,000 dollars to supporting organizations for the purpose of supporting families of firemen who
lost their lives during firefighting operations for one of the worst forest fires on record in the history of Arizona
JVCKENWOOD will continue to conduct support activities for disaster restoration so that smiles can be brought back to
the faces of disaster victims and the areas they live in.

JVC KENWOOD Corporation

29

CSR

Together with customers
▁ ▂ ▃ ▄ ▅ ▆ ▇ Showroom delivering

Excitement and Peace of Mind

The JVCKENWOOD Group has a showroom in Marunouchi,
Tokyo. This showroom displays new products and is also a
space for offering various trial listening events, seminars and
other events on a regular basis. It also offers “Product Trial
Services,” so that customers can use certain products on a
trial basis in their own product usage environments.
As a place to make direct communication with
customers and disseminate information, this showroom
will help people know more about JVCKENWOOD through
these activities, and also provide them with opportunities to
experience “Excitement and Peace of Mind.” We are eagerly
awaiting your visit.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Solution case study–helping to ensure safety and peace of mind

in urban areas

The JVCKENWOOD Groupʼs B to B business helps customers solve problems.
Applying our high-quality video, audio and radio equipment, JVCKENWOOD
proposes systems using expertise and technologies accumulated within the
Group over many years and offers comprehensive solutions ranging from facility
design and installation to maintenance and after-sales services.
Since construction of the TOKYO SKYTREE high-rise building, the
surrounding area has changed rapidly. Currently, as many as 25 million people
visit this previously quiet and traditional residential area annually, which is
expected to bring significant economic benefits. However, there are concerns
about antisocial behavior including rubbish left behind by visitors, conflicts
between visitors and local residents, and noise late at night. As a result, it has
been decided to install roadside security cameras in key areas to ensure safety
and peace of mind for both local residents and visitors. These cameras are
considered to be the most effective tools for crime prevention.
Before installation of the roadside security cameras, the Council for
Promoting Safety and Peace of Mind in Areas Surrounding TOKYO SKYTREE
compared cameras sold by several manufacturers including JVCKENWOOD to
evaluate their performance. The product performance of JVCKENWOODʼs
security cameras (e.g. sharp image quality enabling users to identify individuals
and vehicle number plates, as well as 0.3 lux minimum illumination and 24-hour
surveillance (i.e. night-time surveillance capability)) was highly evaluated. As a
result, the Council selected JVCKENWOOD products.
A total of 66 network security cameras have been installed within a radius
of 800 m of TOKYO SKYTREE and along a nearby river where many visitors gather. These cameras produce sharp images
and are supported by a 24-hour surveillance video recorder system.
Since installing the system, the Council for Promoting Safety
and Peace of Mind in Areas Surrounding TOKYO SKYTREE has
started patrols and other activities in cooperation with the local
police and Sumida Ward. However, according to Council
members, JVCKENWOODʼs roadside security cameras are very
effective tools for preventing unexpected trouble and antisocial
behavior. We are delighted to be able to help ensure safety and
peace of mind in urban areas through our B to B solutions.
*Interview with: The Council for Promoting Safety and Peace of Mind in Areas Surrounding
TOKYO SKYTREE
*TOKYO SKYTREE is a registered trademark of Tobu Railway Co., Ltd. and Tobu Tower Sky
Tree Co., Ltd.

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JVC KENWOOD Corporation

Corporate Social Responsibility (CSR)

Together with business partners
With equality and balance from a global point
of view according to the laws and ethics of
society, the JVCKENWOOD Group is working
with parts procurement partners and sales
partners to build mutually beneficial
relationships through shared trust and
transparency.
JVCKENWOOD creates its products using
various materials and believes that substances
that may have adverse effects on the earth
and people must not be used for products
sold to customers. In addition, we pay
attention to products that are disposed of
after becoming obsolete.
Since it is impossible for a company to
conduct these activities by itself, JVCKENWOOD
is pursuing green procurement in cooperation with many other companies in the supply chain.
Through this activity, JVCKENWOOD can receive reports on substances, including the volumes contained in each
product, and check whether these substances may have adverse effects on the earth and its people.
Since the parts that make up products are provided by suppliers, JVCKENWOOD checks their parts production
processes, conducting activities to protect the earth and people in cooperation with them.
▼For green procurement guidelines, please visit our website.
http://www.jvckenwood.co.jp/en/csr/green/

▁ ▂ ▃ ▄ ▅ ▆ ▇ Information disclosure initiatives related to mineral production in

conflict areas

Respecting fundamental human rights and protecting vulnerable people are the most important issues for all organizations
as well as companies in general that are required to fulfill their social responsibilities.
Many people have become involved in disputes around the world, and inhuman acts have been committed, including
massacres, child labor, and plunder and sexual assaults by armed groups. These acts are often related to the sources of
funds, and this situation has fallen into a vicious circle in some areas.
The United Nations is also concerned about these problems, and the United States has enacted new rules on mineral
purchases from conflict areas for the first time in the world.
JVCKENWOOD is not directly subject to these rules, but agrees to the concept of the rules as a company promoting CSR
procurement in the global supply chain. It also promotes activities to cut off the funding sources of armed groups in
cooperation with other companies.
Based on the corporate policy of not using product parts containing tin, tantalum, tungsten and gold that are
wrongfully produced and refined in the Democratic Republic of the Congo and neighboring countries, JVCKENWOOD
continues to establish a solid supply chain and promote responsible mineral procurement activities.

＊ Picture images

JVC KENWOOD Corporation

31

CSR

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.
▁ ▂ ▃ ▄ ▅ ▆ ▇ Global personnel development: Experiencing business

in emerging markets

As part of our activities to “Accelerate Business Expansion in Emerging Nations,” one of our key measures,
JVCKENWOOD aims for global personnel development. High-potential young employees are dispatched overseas
for six months to one year so that they can gain hands-on business experience mainly in emerging markets and
improve communication skills. In 2012, China was chosen for this purpose, and in 2013, employees were dispatched
to both India and China.

After receiving language training in a
local school, a dispatched employee
gained internship experience in a
local public institution. He then
experienced local business operations
for approximately two months after
learning local business manners.

When he traveled around India on holidays, he saw a rapidly
growing emerging nation's economy with his own eyes.
We will continue to use the power of emerging nations to
train high-potential employees.

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JVC KENWOOD Corporation

Corporate Social Responsibility (CSR)

Supporting career and skill development
Our Company have systematized and implemented training to improve the skills
necessary for implementing personal roles, and training to manifest personal
skills within the organization.
▁ ▂ ▃ ▄ ▅ ▆ ▇ Multi-level training: We met 25 new employees and

carried out the new employee training.

In April 2014, 25 new employees started work.
Training for new employees is a five-month
program that includes instruction in the internal
organization and basic rules of Our Company
and then hands-on training in sales and
production. We aim to quickly increase the skills
of our new employees after they are assigned
to their positions with programs that focus
on education, such as OJT and independent
technical study.

〔

Comprising career interviews, career design training, and a career development support system our
career development program helps people become what they want to be based on personal
employment history and experience.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Career interview

②

③

Training during 3rd year with the Company
*Understanding career concepts

30YO career design training
35YO career design training
40YO career design training
[Public recruitment system]

45YO life and career design training
[Public recruitment system]

*Trainees only

*Held once a year

In these training sessions, employees review their current work
habits while planning what they want to attain in the future
(career vision) and by considering the actions necessary to
attain their goals, become aware of many things. Further, this
is an opportunity for participants to consider comprehensive
work/ lifestyle balance consisting of personal development to
reach future goals and links to family life and the region, while
discussing their career visions.

Watershed recipients every 5 years

①

Career interview

▁ ▂ ▃ ▄ ▅ ▆ ▇ Career design training

Career Development Program (CDP)
All personnel

Career development support

Employees meet with their superiors once a year to discuss their
career 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.

〕

53YO life and career design training

▁ ▂ ▃ ▄ ▅ ▆ ▇ Career development

support system

This system provides employees the support of both time and
money to take on further challenges by applying what they have
learned from their new self-awareness.
This system is used for various purposes to achieve career
visions, such as distance learning courses, participation in outside
seminars, and the obtaining of qualifications, and is effective not
only in personal development but also in in-house invigoration.
Career design training

JVC KENWOOD Corporation

33

CSR

Helping support harmony between work and family life
Our Company is steadily bolstering support of a balance between work and
family life (work life balance: WLB) by accepting the diverse lifestyles and work
habits of employees.
▁ ▂ ▃ ▄ ▅ ▆ ▇ Supporting childcare and nursing
We have established a variety of ways,
for example in childcare and nursing,
to support our employees both at
work and at events in their lives.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Encouraging

workers to have a
day off

In addition to lowering overtime
hours, we are encouraging employees
to use their annual holidays.
To promote the taking of days
off, we are promoting efforts such
as spreading the idea through the
various work sites, of setting goals
for a certain number of days to be
taken during a proposed month in a
joint effort with labor unions. Starting
from the previous fiscal year, we
are surveying each workplace and
setting detailed goals, to follow up on
whether all employees are taking their
days off.

(Hour)

2011

30.00

2012

Explanation

People using
the system in
2013

Childcare leave

Leave can be taken until the end of April following the child's
first birthday or the end of the month in which the child reaches
18 months

Currently used
by 10 people

Reduced working
hours for childcare

During the period ending at the end of March following the
child's 12th birthday, it is possible to reduce work time up to
two hours per day, as provided by law, for childrearing

Currently used by
17 people

Pregnancy leave
for spouses

Three days' leave are allowed to attend the birth of a child

59 people overall,
152 days taken

Sick/injured
childcare leave

During the period ending at the end of March following the
child's 12th birthday, five days' leave per year are allowed for
nursing care (10 days if there are multiple children)

-

Nursing leave

A cumulative maximum of one year leave is allowed for each
family member who requires nursing

-

Reduced working
hours for nursing

Together with nursing leave, it is possible to reduce work time
by up to two hours per day for a cumulative total of one year

-

Nursing days off

Five days' holiday are allowed to care for a family member who
requires nursing (10 days if there are multiple family members)

1 person overall,
4 days taken

Limitation of
overtime work and
night work

If an employee is raising a child, until the end of March
following the child's 12th birthday, and the employee nursing
a family member requiring nursing care so requests, work at
night will not be required and overtime work will be limited to
a maximum of 24-hours per month or 150 hours per year

-

System to register
retirees for
reemployment

An employee who quit because of pregnancy, childbirth,
childcare, nursing care, or a spouse being transferred will be
registered for reemployment

Currently used by
2 people

Name

▁ ▂ ▃ ▄ ▅ ▆ ▇ Reduction in overtime

2013

work

25.00

20.00

15.00

10.00

5.00

0.00

34

Apl.

May

June

JVC KENWOOD Corporation

July

Aug. Sept. Oct. Nov. Dec.

Jan.

Feb. Mar.

We are continuing to make efforts to reduce
overtime work every day as a way to promote a
work life balance.
Specifically, we are setting one day a week
as a noovertime day. On this day, we urge
employees to go home on time in building wide
broadcasts asking them to adjust work schedules
so they can go home at the end of the regular
workday. We are posting the performance of
each department's efforts on our in-house
portal site to raise awareness about overtime
work. Also, we are developing measures
intended to have employees independently
manage their own time as they work.

Corporate Social Responsibility (CSR)

Health and safety
▁ ▂ ▃ ▄ ▅ ▆ ▇ Supporting people returning to work after long absences
We continue to provide seminars on mental health issues
so that all of us are aware of and understand the reality 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
to allow 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 the workload 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 returning to full work after finishing the trial
work stage,a return to work evaluation meeting is held
with those people involved, such as the industrial physician,
medical staff, and supervisors, where everyone involved
evaluates considerations surrounding the return to work
and the support system.

Mental health training

▁ ▂ ▃ ▄ ▅ ▆ ▇ Countermeasures against overwork
Long working hours lead to overwork, and this is an important social problem that cannot help being linked to health
problems.We are striving to prevent damage to the health of people and reduce long working hours. We do this by reducing
overtime and using interviews, guidance, and medical
questionnaires by industrial physicians. Further, we have
also established days when people leave work on time, and
the Safety and Health Committee is reducing work hours as
part of our proactive efforts.

▁ ▂ ▃ ▄ ▅ ▆ ▇ Health and safety at work
Our Safety and Health Committee is focusing its efforts
on safety and health measures to establish a corporate
culture that gives top priority to the health and safety
of its employees. Regarding safety, we aim to go from
zero accidents to zero risks by implementing such
measures as finding potential risks in the workplace,
establishing risk assessment to minimize them, and
regular inspections of workplaces by the Safety and
Health Committee.
As for health, we are supporting employee
healthcare with healthcare offices that provide advice
on health, and measures to follow through on periodic
health checks done in association with industrial
physicians.
We are also promoting the creation of comfortable
work environments by setting up rooms for relaxation
and rejuvenation in our work facilities and completely
separating smoking areas.

Industrial physician providing advice on proper health care

Lounge that can be used by employees to rest or do other things

JVC KENWOOD Corporation

35

Corporate Governance
Corporate 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 to enhance 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, and
establishing internal audit sections, as well as unifying internal control features, establishing an Internal Control Office that plans
and promotes the internal control system, and improving this system on a Group-wide basis to strengthen internal control.

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

Shareholdersʼ meetings are held, as the highest decision-making body, to make corporate decisions about fundamental matters
that are stipulated in the Companies Act of Japan. However, unless otherwise specified in law, matters stipulated in Article 459,
Paragraph 1 of the Companies Act, including dividends from surplus, are determined by resolutions of the Board of Directors
— instead of shareholder resolutions — in accordance with the Companyʼs Articles of Incorporation to enable the formulation
of flexible capital and dividend policies.
The Board of Directors, which is regarded as an organization that makes fundamental and strategic decisions while
overseeing business execution, holds regular meetings once a month and extraordinary meetings when necessary to deliberate
and decide on basic management policies and important matters as well as monitor and oversee the status of business
execution. Directorsʼ terms of office are one year in order to make their responsibilities clear and to accelerate management
processes. In addition, we proactively recruit external directors in order to increase the transparency of decision-making.
The Articles of Incorporation stipulate that the number of directors shall be nine at maximum, and resolutions for electing
directors at a shareholdersʼ meeting shall require the presence of shareholders holding one-third or more of the exercisable
voting rights of shareholders and the majority of votes thereof. Moreover, no cumulative voting shall be accepted. Eight
directors were elected at the 6th Annual Shareholdersʼ Meeting held on June 20, 2014.
To ensure the effectiveness of the management supervisory function based on experience, achievements, professional
viewpoints, and insights, etc., as well as independence having no potential conflicts of interest with general shareholders,
JVCKENWOOD elects candidates for external directors, in principle, by 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 JVCKENWOODʼs
main business partners, etc.) based on its independence standards and policies, which are stipulated in the “Guideline for the
governance of listed companies” (III 5, (3)-2) issued by the Tokyo Stock Exchange. Since June 20, 2014, JVCKENWOOD has
appointed Junichi Hikita and Masanori Yoshikai as external directors.
2. Matters concerning Executive Officer System
JVCKENWOOD adopts an executive officer system, differentiating the function of business execution to clarify management
responsibility and business execution responsibility. Since June 20, 2014, eight directors (including two external directors) and
15 executive officers (six concurrently holding positions as directors) have performed their duties.
The Board of Directors leading innovation and governance has discussions with external directors who are independent
officers and executive officers serving concurrently as Directors of the Board to make decisions, and delegate authority for business
execution to executive officers. In addition, the Chairman and the Representative Director of the Board serves as the Chief
Executive Officer (CEO), while the President and the Representative Director of the Board serves as the Chief Operating Officer
(COO). They are responsible for both management supervision and business execution. According to the decisions at meetings of
the Board of Directors, the CEO chairs the Board of Executive Officersʼ meetings, and the COO executes business operations with
responsibility.
Upon replacing the business-segment structure dated on May 14, 2014, the Group established a regional CEO structure by
creating a CEO position in each of four regional business segments: United States, Europe, Japan, and Asia and emerging
countries. We review the existing development-oriented (or product-out type) approach led by business-segment system, and
shift to the market and customer oriented approach responding to the core overseas businesses and the growing professional
businesses which generate a half of company-wide sales. By doing so, the Company aims to expand both the domestic and
overseas sales of its current businesses. Under the new management organization, the Group will also accelerate
implementation of M&A, strategic alliances, and early commercialization of next-generation businesses.

36

JVC KENWOOD Corporation

Corporate Governance

3. Matters concerning the Board of Auditors and Auditors
JVCKENWOOD is a company with a board of auditors. Auditors are responsible for the corporate audit function and their duties
include attending Board of Directorsʼ meetings and other important meetings, as well as holding Board of Auditorsʼ meetings,
auditing the execution of Directorsʼ duties, the business execution of the entire Group, and corporate accounting.
The Board of Auditors holds meetings once a month, and extra as needed.
Since June 26, 2012, three auditors (including two external auditors) have performed their roles and responsibilities.
To ensure the effectiveness of the management supervisory function based on experience, achievements, professional
viewpoints, and insights, etc., as well as independence, having no potential conflicts of interest with general shareholders,
JVCKENWOOD nominates candidates for external auditors 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
JVCKENWOODʼs main business partners, etc.) based on its independence standards and policies, which are stipulated in the
“Guideline for the governance of listed companies” (III 5, (3)-2) issued by the Tokyo Stock Exchange, with the approval of the
Board of Auditors. On June 26, 2012, JVCKENWOOD appointed Akihiko Washida and Shojiro Asai as external auditors.

Organization System (As of July 1, 2014)

Shareholders’ Meeting
Report

Report
Appointment and removal

Appointment and removal

Audit & Supervisory Board

Report

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

Appointment and removal

Accounting Auditors

Report

Board of Directors

8 Members of the Board of Directors
(including 2 from outside the Company)

Audit

Financial Audit

Report

Corporate Audit
Office

Selection and dismissal

Audit

Board of Executive Officers
Report

Chief Executive
Officer (CEO)

15 Executive Officers
(including 6 directors)

Chief Operating
Officer (COO)
Chief Risk
Officer (CRO)

Chief Strategy
Office (CSO)

Chief Innovation
Officer (CIO)

Corporate Division
Heads (4 persons)

Internal Audits

CEO Americas
CEO Europe
CEO Asia & Emerging Region

Audit

CEO Japan

Operations

Operations

Operations

Operations

Information Disclosure
Council

PL Board

General Executive Car
Electronics Segment

Operations

Compliance Committee

Environment
Board

General Executive Professional
Systems Segment

Operations

General Executive Optical
& Audio Segment

Operations

General Executive Entertainment
Software Segment

Operations

Corporate Strategy Staﬀ

Sales Company (America)

Sales Company (Europe)
Sales Company
(Asia & Emerging Nations)
Domestic Sales Division
Car Electronics Segment
Professional Systems Segment

Optical & Audio Segment
Entertainment Software Segment

Other Aﬃliates

（JVCKENWOOD Group Companies）

JVC KENWOOD Corporation

37

Corporate Governance

Internal Audit, Auditorsʼ Audit and Accounting Audit Systems
JVCKENWOOD positions the Corporate Audit Office as an oversight organization, which conducts internal audits on the overall
business execution of the entire Group and reports the audit results to the Board of Directors. As of June 20, 2014, the Corporate
Audit Office has ten staff members engaged in operational audits and internal control audits. As the audit scope covers the entire
Group, when planning an audit schedule, the Corporate Audit team prepares a Risk Assessment Form and selects audit targets
based on risk assessment to improve the effectiveness of internal audits.
Auditors implement audits according to the audit schedule, audit the entire Groupʼs operations, and check in-house approval
documents based on the monitoring of directors and executive officers. Auditors also attend audits performed by the Corporate
Audit Office, thereby broadening the scope of their audits.
Three public accountants, Yasunari Kunii, Yasuhiko Haga, and Nobuo Son, perform the accounting audits of JVCKENWOOD
and the Group. They are limited liability partners and managing partners of Deloitte Touche Tohmatsu Limited. Nobuo Son and
Yasuhiko Haga have performed audits consecutively for six and two years, respectively, while Yasunari Kunii has been engaged in
these audits for one year. The total number of audit assistants is 29 (13 certified public accountants and 16 other assistants).

Coordination between Internal Audits, Auditorsʼ Audits and Accounting Audits

All the auditors including external auditors perform management audits by themselves, attend Board of Directorsʼ meetings, obtain
the results of internal audits 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, etc. committed by management, the Corporate Audit Office is required to report it to auditors in accordance with
the internal rules.
At Board of Auditorsʼ meetings, the results of accounting audits performed by independent auditors are regularly reported to
auditors. As a result, the validity of mutual coordination between audits has been improved.
JVCKENWOOD has established its internal audit system so that the Corporate Audit Office can conduct its audits in
collaboration with the Groupʼs finance and accounting divisions, and has also strengthened monitoring functions by performing
audits for each compliance theme in collaboration with the Compliance Committee, and by other means.
External directors attend Board of Directorsʼ meetings, and recognize the Groupʼs overall business performance by obtaining
the results of internal audits performed by the Corporate Audit Office. As a result, they can oversee the Groupʼs business
execution, give advice, and make proposals whenever necessary from a professional as well as independent standpoint with no
conflicts of interest.
In addition, JVCKENWOOD established an Internal Control Office on July 1, 2014 to improve and strengthen its internal
control system.

38

JVC KENWOOD Corporation

Risk Management

Risk Management
Enterprise Risk Management Activities
Key Philosophy
The JVCKENWOOD Group regards risk as “factors that are mutually linked, affecting one another to inhibit the achievement of
business plans.” The Group regularly identifies risks faced by all its business sites around the world, conducts comprehensive
assessments on features of risk, its mutual relations and materiality from a companywide perspective, and performs cross-divisional
activities to manage risks more effectively.
To accomplish its business plans, the Group will put in place a corporate strategy that correctly identifies and responds to risk
in the course of its day-to-day corporate activities. Although risk management and the Groupʼs corporate strategy would appear to
be different, this move indicates that they are the same in terms of their objectives.
Chief Executive Oﬃcer (CEO)

Risk Management Organization
Company-wide Risk Management
BCP Conference

Secretariat

Chairman: Chief Risk Oﬃcer (CRO)
Members: General executives selected
by the CRO

Risk Management
Oﬃce

Working Groups by Function
Procurement

IT

Development & Design
Human Resources

CS

Production

Finance

Sales

General Aﬀairs

Logistics

Public Relations

Car Electronics Segment
Professional Systems Segment
Optical & Audio Segment

Corporate Division,
Head Oﬃce

The JVCKENWOOD Group has constructed an organization
where enterprise risk management is advanced under the
powerful initiative of the CRO (Chief Risk Officer).
The Enterprise Risk Management Conference, which is
comprised of members chosen from company executives and
chaired by the CRO, discusses various key issues related to the
Group's risk management, and also strive organizational
initiatives to address risk that affect the JVCKENWOOD Group
management through placing “Working Groups by Function”
under control, which are comprised of representatives of each
business function.

Aﬃliates

Entertainment Software Segment

Business Continuity Plan
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 and secondly 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 operation 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, disaster prevention, and emergency stockpiles, the JVCKENWOOD Group has been working progressively on BCP
measures in each business field by leveraging its accumulated BCP expertise and making good use of its experience of the floods in
Thailand to build in stages a mechanism of alternative production in preparation for events in which it would be difficult to restore
its production bases in a short period of time.
The Group also carries out a variety of simulation training to gain initial response experience, as well improve rules and
manuals based on the results and findings of training, aiming to make BCP become solidly established.

Training at a production base in Thailand:
Sandbagging based on flood experience

Training at a production base in Japan:
Initial response simulation assuming the occurrence of a serious earthquake
JVC KENWOOD Corporation

39

Corporate History
JVC KENWOOD Corporation

2007

Jul. Victor Company of Japan, Limited (JVC) and Kenwood Corporation (Kenwood) entered into an agreement on a capital and business
alliance to cooperate in their Car Electronics and Home Audio Businesses and integrate their management

Aug. 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.

2008

Oct. JVC and Kenwood established the technology development joint venture J&K Technologies Corp. (J&K Technologies)
May JVC and Kenwood agreed to and signed an agreement to integrate their management through the establishment of a joint holding
company (stock transfer)

Oct. JVC and Kenwood established the joint holding company JVC KENWOOD Holdings, Inc. (JVCKENWOOD) through a stock transfer
(JVCKENWOODʼs shares were listed on the First Section of the Tokyo Stock Exchange)

Oct. Development and production functions of the Car Electronics Business of JVC and Kenwood were taken over by J&K Technologies
through a company split (simplified absorption-type split)

2009

Jun. J&K Technologies renamed J&K Car Electronics Corporation (J&K Car Electronics), making J&K Car Electronics a virtually independent

2010

Dec. The JVCKENWOOD Group launched a car navigation system MDV-313 that adopts the same platform for the first time (Photo ①)
Mar. Implemented adjustments to earnings results of JVC for the period between the fiscal year ended March 31, 2005 and the second

company engaged in the Car Electronics Business

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
Put in place a mid-term management plan to promote renewed growth

May
Dec. Undertook steps to relocate the Companyʼs head office and realign business divisions to promote Group management integration,
enhance operating efficiency and maximize integration effects

2011

Aug. JVC KENWOOD Holdings, Inc. changed its name to JVC KENWOOD Corporation
Sep. Formulation of New Mid-term Business Plan
Oct. JVC KENWOOD Corporation completed an absorption-type merger of its three subsidiaries Victor Company of Japan, Limited,

2012

Apr. JVCKENWOOD acquired a total of 45.0% of the outstanding shares of Shinwa International Holdings Limited, a large-scale Hong

Kenwood Corporation, and J&K Car Electronics Corporation

2013

Jun.
Nov.
Nov.
Dec.
Mar.
Jun.
Jul.

2014

Jan.
Jan.
Mar.

Kong-based manufacturer and sellers 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 the inauguration of the Group
The JVCKENWOOD Group formulated a new “Mid-term Business Plan,” which covers the period through to FYE 3/2016
The JVCKENWOOD Group launched a land mobile radio equipment for Taxi business TCM-D244SR/D244GSR (Photo ②)
The JVCKENWOOD Group launched a ProHD mobile news camera GY-HM650 (Photo ③)
The JVCKENWOOD Group launched DLA-VS4800, the worldʼs first mass-production model of the professional-use D-ILA projector,
which features an 8K high-definition display
The JVCKENWOOD Group converted Shinwa International Holdings Limited, the largest manufacturer and seller of CD and DVD
mechanisms for car AV equipment in Hong Kong, into a consolidated subsidiary
The JVCKENWOOD Group 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
The JVCKENWOOD Corporation invested in “WiL FUND I, L.P.” to accelerate growth strategy partnership with domestic and
international venture companies
The JVCKENWOOD Corporation and AIRBUS DEFENCE AND SPACE formed an alliance to develop and commercialise public safety
wireless broadband systems
The JVCKENWOOD Corporation obtained 100% ownership of EFJohnson Technologies, Inc., a company focused on delivering
mission-critical, digital P25 communications solutions to the North American market

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

Kenwood and JVC

40

JVC KENWOOD Corporation

② Land mobile radio equipment tor Taxi
business「TCM-D244SR/D244GSR」

③ ProHD mobile news camera「GY-HM650」

Corporate History

Former Victor Company of Japan, Limited
1927
1939
1956
1963
1976
1986
1991
1995
2003

Victor Talking Machine Company of Japan, Limited, established (Photo ④)
Produced Japanʼs first TV receiver
Developed 45/45 stereo record format
Introduced KV-200, the worldʼs smallest 2-head professional VCR
Introduced HR-3300, the worldʼs first VHS home video recorder (Photo ⑤)
Introduced GR-C7, the worldʼs smallest and lightest VHS-C video camera

④ Gramophone

in 1928

Introduced AV-36W1, the first 16:9 TV in the industry
Introduced GR-DV1, the worldʼs first pocket-sized digital video camera
Introduced GR-HD1, high-definition digital video camera
Introduced EX-A1, compact component system

2005 JVC co-developed high-quality audio compression technology “net K2”
with Victor Entertainment, Inc.

⑤ The worldʼs first VHS home
video recorder “HR-3300”

2006 JVC awarded the prestigious IEEE Milestone for the development of VHS video
2007 Introduced Everio GZ-HD7, the worldʼs first full HD hard disk camcorder targeted
2009

at consumers
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 (Photo ⑥)
2011 Merged into JVC KENWOOD Corporation
⑥ JVC LSI enables high-speed

image processing
in HD camcorders

Former Kenwood Corporation
1946
1957
1960
1962
1966
1978
1980
1983
1986
1991

Established Kasuga Radio Co., Ltd. (predecessor of Kenwood Corporation)
Began exporting FM tuners for the first time as a Japanese manufacturer (Photo ⑦)
Renamed Trio Electronics, Inc.
Launched the industryʼs first transistor amplifier
Introduced fully transistorized audio products for the first time in the industry

⑦ FM tuner

Entered the commercial wireless radio equipment field in Japan
Entered the car audio field in the U.S.
Entered the business & industry sector of commercial wireless radio field in the U.S. (Photo ⑧)
Renamed Kenwood Corporation
Developed the radio systems used in F1 world championship races and excuted
an official supplier contract with Team McLaren
Entered the car navigation system field, launching the industryʼs first 1DIN-size GPS car navigation system

1992
1997 Supplied Real Focus Sound System for the Forester and 2nd Legacy models of Subaru,

⑧ Land mobile radio launched

in the U.S.

establishing a base for the OEM Business

2004 Acquired the wireless radio operations of Toyo Communication Equipment Co., Ltd.
2005 Formed a technical and capital alliance with Icom Inc. to jointly research the standardization
of technical specifications for digital wireless radio equipment

2007 Converted Zetron, Inc., a U.S. systems-based communication company into a subsidiary

2008

Formed a new after-market collaboration agreement for AV-integrated navigation systems
for the consumer after-market with Garmin, the largest PND maker in the U.S.
Launched a voluntary organization jointly to contribute to the development
of land mobile radios in the Americas
Basic land mobile radio equipment for emerging markets TK-U100, TK-2000/3000 (Photo ⑨)

2010
2011 Merged into JVC KENWOOD Corporation

⑨ Basic land mobile

radio equipment
for emerging
markets

JVC KENWOOD Corporation

41

Network（ Global）

Network (Global) (85 subsidiaries and affiliated companies in total)
As of July 1, 2014

Global Affiliated Manufacturing Companies
Company Name

Location

Main Products

Kenwood Electronics Bretagne S.A.

Janze, France

Car electronics equipment

JVCKENWOOD Technologies Singapore Pte. Ltd.

Singapore

Telecommunications equipment

JVC Manufacturing Malaysia Sdn. Bhd.

Selangor, Malaysia

Audio and imaging 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

P.T. JVC Electronics Indonesia

West Java, Indonesia

Car electronics equipment

Shanghai Kenwood Electronics Co., Ltd.

Shanghai, China

Car electronics and telecommunications equipment

Zetron, Inc.

Washington, U.S.A.

Telecommunications equipment

Shinwa International Holdings Ltd.

Hong Kong, China

In-car AV mechanisms and plastic components

EFJohnson Technologies, Inc.

Texas, U.S.A.

Professional Wireless Systems

Europe: Affiliated Sales Companies

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

Company Name

Location

Company Name

Location

JVC Europe Ltd.

The United Kingdom

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVC Professional Europe Ltd.

The United Kingdom

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

Kenwood Electronics UK Ltd.

The United Kingdom

JVCKENWOOD Thailand Co., Ltd.

Thailand

JVCKENWOOD France S.A.S.

France

JVCKENWOOD Gulf Fze

U.A.E.

JVCKENWOOD Italia S.p.A.

Italy

PT. JVCKENWOOD Indonesia

Indonesia

JVCKENWOOD Iberica, S.A.

Spain

JVCKENWOOD Australia Pty. Ltd.

Australia

JVC Deutschland GmbH

Germany

Kenwood Electronics Deutschland GmbH

Germany

JVCKENWOOD Belgium N.V.

Belgium

China: Affiliated Sales Companies

JVCKENWOOD Nederland B.V.

Netherlands

Company Name

Location

JVC International (Europe) GmbH

Austria

JVC (China) Investment Co., Ltd.

China

JVC Polska Sp. Zo. o.

Poland

JVCKENWOOD Hong Kong Ltd.

China

LLC "JVCKENWOOD Ukraine"

Ukraine

LLC "JVCKENWOOD RUS"

Russia

Other Main Global Affiliated Companies

42

Company Name

Location

Americas: Affiliated Sales Companies

AltaSens, Inc.

U.S.A.

Company Name

Location

JVCKENWOOD Electronics Singapore Pte. Ltd.

Singapore

JVC Americas Corp.

U.S.A.

JVCKENWOOD Procurement Center (H.K.), Ltd.

China

Kenwood U.S.A. Corp.

U.S.A.

JVC Canada Inc.

Canada

Kenwood Electronics Canada Inc.

Canada

JVCKENWOOD Latin America, S.A.

Panama

JVCKENWOOD do Brasil Comércio de Eletrônicos Ltda.

Brazil

JVC KENWOOD Corporation

Network（ Japan）

Network (Japan) (33 subsidiaries and affiliated companies in total)
As of July 1, 2014

R&D Center・Business Centers
Name

Location

Main R&D Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Video cameras, Displays, Home audio

Kurihama R&D Center

Yokosuka, Kanagawa

Projectors, D-ILA devices

Hachioji Business Center

Hachioji, Tokyo

Car electronics

Hakusan Business Center

Yokohama, Kanagawa

Communications, Security cameras

Main Japanese Manufacturing Sites and Affiliated Manufacturing Companies
Name

Location

Main R&D Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Electronic components (for optical pickups)

Yokosuka Business Center

Yokosuka, Kanagawa

Projectors, D-ILA devices

JVCKENWOOD Creative Media Corporation

Yamato, Kanagawa

CD and DVD discs (prerecorded)

JVCKENWOOD Interior Furniture Corporation

Fukuroi, Shizuoka

Home furniture

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Professional products

JVCKENWOOD Devices Corporation

Osato-gun, Saitama

Components

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

Electronic devices such as Medical Display Monitor Solution

Main Japanese Consolidated Affiliated Companies
Name

Location

Main R&D Products

JVCKENWOOD Nagano Corporation

Ina, Nagano

Car electronics

JVCKENWOOD Optical Components Corporation

Yokohama, Kanagawa

Sales of electronic components (optical pickups, 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

JVCKENWOOD Video Tech Corporation

Shibuya-ku, Tokyo

JVCKENWOOD Victor Entertainment Corporation

Shibuya-ku, Tokyo

Teichiku Entertainment, Inc.

Shibuya-ku, Tokyo

Victor Service & Engineering Co., Ltd.

Yokosuka, Kanagawa

JVCKENWOOD Technobrain Corporation

Yokohama, Kanagawa

JVCKENWOOD Kenex Corporation

Hachioji, Tokyo

Kenwood Home Electronics Corporation

Yokohama, Kanagawa

Sales of professional audio and visual equipment
Video production, editing and sales, and studio
operations
Planning, production, and sales of audio and video
software, etc.
Planning, production, and sales of audio and video
software, etc.
Repair of electric equipment
Dispatch of engineers, undertaking of
engineeringrelated work, and other operations
Sales and other operations relating to audio and
communications equipment
Sales of home electronics products, etc.
After-sales services and other operations relating to
audio, communications and other equipment
Planning and production of industrial designs for audio,
communications and other equipment

JVCKENWOOD Service (Japan) Corporation

Yokosuka, Kanagawa

JVCKENWOOD Design Corporation

Meguro-ku, Tokyo

JVCKENWOOD Engineering Corporation

Hachioji, Tokyo

Development and design of hardware and software

JVCKENWOOD Partners Corporation

Hachioji, Tokyo

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

JVC KENWOOD Corporation

43

Management Team

Management Team
Directors of the Board

As of July 1, 2014

Audit & Supervisory
Board Members

Executive Officers

Haruo Kawahara

Shoichiro Eguchi

Seiichi Tamura

Takayoshi Sakamoto

Masaaki Saito

Masatoshi Miyamoto

Satoshi Fujita

Takao Tsuji

Kazuhiro Aigami

Junichi Hikita

Akihiko Washida

Toshiaki Matsuzawa

Akira Suzuki

Masaki Imai

Naokazu Kurihara

Masanori Yoshikai

Shojiro Asai

Kazuki Oi

Yasuyuki Tanida

Fabien Gregoire

Directors of the Board
Haruo Kawahara

Shoichiro Eguchi

Seiichi Tamura

Chairman, Representative Director of the Board

Representative Director of the Board

Director of the Board

Takao Tsuji

Kazuhiro Aigami

Junichi Hikita

President, Representative Director of the Board

Representative Director of the Board

Director of the Board (External) ＊ 1

Naokazu Kurihara

Masanori Yoshikai

Director of the Board

Director of the Board (External) ＊ 1
＊ 1: External Director specified in Item 16, Article 2 of

the Companies Act

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 Companies Act

Executive Officers
Haruo Kawahara

Masaaki Saito

Akira Suzuki

＊ Chief Executive Officer (CEO)

Senior Executive Vice President & Executive Officer,
General Executive of Entertainment Software Segment,
President of JVCKENWOOD Victor Entertainment
Corporation

Senior Vice President & Executive Officer,
General Executive of Professional Systems Segment

Takao Tsuji
＊ Chief Operating Officer (COO),

Chief Risk Officer (CRO),
Chief Innovation Officer (CIO)

Shoichiro Eguchi
＊ CEO Europe

Kazuhiro Aigami

Toshiaki Matsuzawa
Executive Vice President & Executive Officer,
Co-leader of CVC Task Force,
General Executive of Production & Procurement Division,
Deputy General Executive of Car Electronics Segment

＊ CEO Americas

Kazuki Oi

Naokazu Kurihara

CEO Asia & Emerging Region,
General Manager of Professional Systems , Asia &
Emerging Regions

＊ CEO Japan,

President of Kenwood Home Electronics Corporation

Seiichi Tamura
＊ Chief Strategy Officer (CSO), ＊ 3

General Executive of Corporate Strategy Division

Masatoshi Miyamoto
Senior Vice President & Executive Officer, General
Executive of Car Electronics Segment

Yasuyuki Tanida
Senior Vice President & Executive Officer,
General Executive of Optical & Audio Segment,
Co-leader of New Imaging Business Development Task Force

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

Masaki Imai
Senior Vice President & Executive Officer, Assistant to COO,
General Executive of Corporate Management Division,
General Executive of Human Resource & General
Administration Division

Fabien Gregoire
Senior Vice President & Executive Officer,
General Manager of Global Brand Experience Division

＊ Concurrently serving as Director of the Board.
＊ 3: CSO (Chief Strategy Officer) integrates the function of Chief Financial Officer (CFO), controlling corporate strategies, capital, and financial strategies including foreign exchange, and legal affairs.

44

JVC KENWOOD Corporation

Corporate Data and Share Related Information

Corporate Data
Company Name

JVC KENWOOD Corporation

Businesss Segments

Controlling and managing the business activities by operating the Car Electronics Business, Professional Systems
Business, Optical & Audio Business and Entertainment Software Business 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
Shoichiro Eguchi, Representative Director of the Board
Kazuhiro Aigami, Representative Director of the Board

Date of Incorporation

October 1, 2008

Capital

￥10 billion

Number of Employees

19,791 (as of March 31, 2014)

Equity

￥60,224 million (as of March 31, 2014)

Total Assets

￥267,380 million (as of March 31, 2014)

Fiscal Year-End

March 31

Head Office

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

Showroom

1F, Shin-Kokusai Bldg., 3-4-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005

Share-Related Information

As of March 31, 2014

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

Stock Exchange Listing

Listed on the first section of the Tokyo Stock Exchange

Security Code

6632

Trading Unit

100 shares

Total Number of Shares Issued

139,000,201 shares (including 335,884 treasury shares)

Total Number of Shareholders

54,574

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

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
Japanese companies
4.74%
Securities companies
3.60%

Financial
institutions
27.17%

Treasury stock
0.24%

Individuals
and others
40.21%

Foreign companies
24.04%

Major Shareholders (Top 10)
Name

Number of stocks
held (thousands)

Ratio of
shareholding (%)

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

9,636

6.95

Japan Trustee Services Bank, Ltd. (trust account)

6,476

4.67

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

4,547

3.28

DENSO CORPORATION

4,171

3.01

NOMURA PB NOMINIEES LIMITED OMNIBUS-MARGIN (CASH PB)

4,066

2.93

BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN

3,110

2.24

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

2,747

1.98

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

2,727

1.97

DEUTSCHE BANK AG LONDON-PB NON-TREATY CLIENTS 613

2,529

1.82

THE BANK OF NEW YORK 133522

2,063

1.49

Note: Ratio of shareholding is calculated based on the total number of shares issued and outstanding (excluding treasury stock).

JVC KENWOOD Corporation

45