Contents
Corporate Vision,
Management Principles, 4 Values

1Part 3
Foundation to Support
Sustainable GrowthBusiness Areas

2

Sustainability Strategy

36

Financial Highlights

4

Environment

40

Society44

INTRODUCTION

Corporate Vision

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

GovernancePart 1
JVCKENWOOD’s Value Creation• Corporate Governance46• Message from the External Director

49

Management Principles

Creating value through Monozukuri• Directors of the Board, Audit &Supervisory Board Members,
and Executive Officers

50• Compliance

52

Message from the CEO

6

Strengths of JVCKENWOOD

10• Risk Management

53

Value Creation Process

12Awards & Recognitions

53

Building a corporate culture that adapts and embraces change
Investing in people to strengthen capabilities and push boundaries
4 Values

Part 2Strategies to Enhance Corporate Value
over the Medium to Long Term

Part 4
Other Data

Medium-Term Management Plan VISION 2023

Facilities (Japan & Overseas)

56• Positioning of the Medium-Term
Management Plan VISION2023

Financial and Non-Financial Data

58

15

Company Profile/Stock Information

60• Recognition of External Environment
and Basic Strategies

16• Outline of Medium-Term Strategy

18• Message from the CFO

20• At a Glance22• Business Strategy

24• Manufacturing Reforms andStrengthening of Business Structure

32• Technology Development Strategy

33

Company History

ChangeCreateEarning Power

Connect54• Personnel Measures, Corporate Culture
Reforms, and Work Style Reforms
34

Editorial policy
The JVCKENWOOD Integrated Report contains a review of the Group’s strengths and processes for value creation up to fiscal year ended March, 2021.
With a focus on the JVCKENWOOD’s newly formulated Medium-Term Management Plan VISION 2023, the report explains the vision, strategies for eachbusiness sector, and the initiatives that contribute to a sustainable society.

Notes on the outlook for the futureStatements in this report that are estimates about the future are forward-looking statements. These forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause the actual results to differ substantially from those discussed in the forward-looking
statements. These statements are current as of the date of publication of this report. The Company is under no obligation to update and announce any
forward-looking statements in the event that economic or market conditions affect the performance.

JVCKENWOOD Integrated Report 1

INTRODUCTION

Business Areas

OthersThe JVCKENWOOD Group aims to provide products,
services, and solutions that realize its corporate
vision of “Creating excitement and peace of mind
for the people of the world” in the three businesssectors: Mobility & Telematics Services Sector*1,
Public Service Sector, and Media Service Sector.

2.0%

57.4%

22.3%

Revenue
Composition
Ratio byBusiness Sector*2(FYE3/’21)

Public Service Sector

18.3%*1 Effective July 1, 2021, the Telematics Business of the Digital Transformation (DX) Business Division,
which was included in the Others segment, was incorporated into the Automotive Sector andrenamed the Mobility & Telematics Services Sector. The revenue composition ratio by businesssector is calculated based on the new field classification for the fiscal year ended March 2021.
*2 Rounded to the first decimal place

The Public Service Sector consists of Communications Systems
Business and Professional Systems Business. We provide products, services, and solutions that contribute to people’s lives,
livelihoods, and the creation of safe and secure cities throughprofessional radio systems, wireless broadband solutions, security systems, professional broadcasting systems, and medical image
display monitors.

Main products

Mobility & Telematics Services Sector
The Mobility & Telematics Services Sector consists of the OEM Business,
which provides car navigation systems, dashcams, and other related products tocustomers through automobile manufacturers and dealers, and the Aftermarket
Business, which provides products to customers through mass merchandisers anddistributors. We are also developing the Telematics Service Business for automobile insurances by equipping dashcams, which boast top-class performancein the industry, with communication functions. Furthermore, by expanding ourbusiness areas to the data service business as an IoT platform business, we aim
to provide solution services that contribute to a safer and more secure mobility.

Professional radio system

Security system

Medical image display monitor

Main products

Media Service Sector

Car navigation system
Telematics service

The Media Service Sector consists of the Media Business and theEntertainment Business. The Media Business develops a wide rangeof products that respond to the stay-at-home demand due to theincrease in time spent at home and the growing awareness of natural
disasters and pandemics. We also aim to expand the business related
to next-generation optical communications for the 5G and 6G era.
In the Entertainment Business, with a number of popular artists, we
are working to expand the share of the packaged and distributed
music business and to strengthen the non-music business.

DashcamMain products

Display audio system

2 JVCKENWOOD Integrated Report

Car audio system

In-vehicle amplifier/Antenna/Speaker

Headphones/Earphones

Portable power station

Music and video content

JVCKENWOOD Integrated Report 3

INTRODUCTION

Financial Highlights

Revenue

Operating profit (loss)

Interest-bearing debts(Million yen)

(Million yen)

(Million yen)

350,000

8,000

80,000300,000

307,627

300,687

297,890

291,304

6,937

273,609250,000

7,263

4,893

200,000(Million yen)

70,9966,000

Net debt*

67,84771,31274,60575,58740,00034,67160,00030,00040,00020,00030,19830,68530,468

4,080

4,000

150,000

15,9422,000

100,000

20,00050,0000-1,0000

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

10,000

-128

0

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

0

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

*Calculated using formula “Interest-bearing debt - Cash and deposits” for JGAAP
and “Interest-bearing debt - Cash and cash equivalents at the end of the fiscalyear” for IFRS

Total assets/Total equity

Ratio of profit (loss) attributable toowners of the parent company*

Equity attributable to ownersof the parent company per share*(Million yen)

(%)

(yen)

300,000

10
241,696

239,933

250,617249,660

400

264,326

364.42

6.8
5.3

5

300

3.6

200,000

Capital investment/Depreciation expense/
Research and development expenses
394.33378.24344.55284.651.6
065,32153,78859,99968,5230-5Total assets

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

Total equity

Ratio of equity attributable toowners of the parent company*

-7.5

0

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

22.6

16.4

10

0

FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21

*Equity attributable to owners of the parent = Equity attributable to owners of
the parent ÷ Total assets x 100

4 JVCKENWOOD Integrated Report

FYE 3/’21

Capitalinvestment*

9,069

8,287

8,700

11,837

10,269Depreciation
expense15,417

16,862

17,79420,20019,316

Research anddevelopment
expenses

19,282

17,89018,30917,445

15,720FYE
3/’17*1

FYE
3/ʼ18

FYE
3/ʼ19

FYE
3/ʼ20

FYE
3/ʼ21
*Tangible fixed assets only

Cash flows

Revenue composition ratio by region (FYE 3/’21)

Production ratio by region (FYE 3/’21)

24.5

20

FYE 3/’20*Equity attributable to owners of the parent per share = Total equity attributableto owners of the parent ÷ Number of shares issued(Million yen)

OthersFYE 3/’17*1 FYE 3/’18 FYE 3/’19 FYE 3/’20 FYE 3/’21

Asia/China

(%)

24.7

FYE 3/’19*Ratio of profit (loss) attributable to owners of the parent company (ROE) = Net
income attributable to owners of the parent ÷ Average equity attributable toowners of the parent for the fiscal year x 100

30

21.1

FYE 3/’18

100

-10

FYE
3/’17*1

FYE 3/’17*

200

100,000
45,236(Million yen)
1

Cash flow fromoperating activities

19,624

Cash flows frominvesting activities-17,690 -14,835 -25,768 -19,675 -11,804

Cash flows fromfinancing activities-2,052-7,043

8,479-1,665-5,342

Free cash flows

1,934

3,544

-4,785

1,967

24,205

18,37920,98321,642Others

12%

3%

Japan

Europe

8%

3%

Japan

14%

35,829

17%

China

45%

Europe

32%
43%

23%
Southeast Asia

Americas*1: While disclosure was previously made under JGAAP, the amounts shown were calculated under IFRS to allow year-on-year comparisons,in preparation for disclosure under IFRS in the fiscal year ended March 2018.

JVCKENWOOD Integrated Report 5

JVCKENWOOD’s Value Creation

Message from the CEO

Medium-Term Management Plan VISION 2023: Change for Growth

Change for Growth
Full-fledged start on growth track
Representative Director of the Board,
President and CEO

EGUCHI Shoichiro

Under its corporate vision of “Creating excitement and peaceof mind for the people of the world,” the Company aims
to become an excellent company with both strength andtoughness. It will anticipate changes and carve a path to the
future in order to increase corporate value over the medium
to long term in a rapidly changing business environment. In
the Medium-Term Management Plan VISION 2023, we havepositioned FY 2021 to FY 2023 as a three-year period of“Change for Growth” during which we aim to strengthen
the revenue base of the existing business and establish
new growth areas. By “Change for Growth,” we mean toradically review our thinking and behavioral patterns, breakaway from conventions, and take on new challenges. The
following four items were identified as key themes.

In an era of rapid changes, business are required to always
respond with flexibility and promptness to changes,
ensuring that will lead to growth. We are committed topromoting sustainability management and strengthening
ESG by the two goals of “Change” to strengthen therevenue base of the existing business, and “Growth” toexpand our growth business even further through new
products and new business.

Key themes1) Shift to an earnings structure that createsstable business profits
2) Redefine the business portfolio3) Expand the Mobility & Telematics Services
Business and create new Business4) Promote sustainability management

Review of the fiscal year ended March 2021
In the fiscal year ended March 2021, revenue decreased to273,609 million yen from 291,304 million yen due to theimpact of the spread of COVID-19 worldwide. However,thanks to a recovery in operating results in the second
half of the fiscal year and cost reductions through thepromotion of the CEM*1 Project, core operating income*2
at all stages below (profit/loss) exceeded the results of theprevious period, and profit attributable to owners of theparent company increased to 2,154 million yen from 954
million yen. The total amount of dividends was 819 million
yen, resulting in a dividend payout ratio of 38.0%. Also,with respect to our financial condition as of the end of
March 2021, the ratio of equity attributable to owners of
the parent company to total assets increased to 24.5%
from 22.6%, and net debt decreased significantly toapproximately 15.9 billion yen from approximately 34.7
billion yen at the end of the previous period.
Under the previous Medium-Term Management Plan
Vision 2020, we had promoted management using ratio
6 JVCKENWOOD Integrated Reportof profit attributable to owners of the parent company(ROE) as the main indicator. ROE in the final fiscal year
recovered to 3.6% from 1.6% in the previous period;
however, it failed to reach the target of 10%. Meanwhile,in the second half of the current period*3, core operating
income amounted to 10.2 billion yen, exceeding the 10
billion yen mark for the first time since the management
integration in 2008. In particular, core operating incomein the second half of the fiscal year at the Automotive
Sector, which is our priority area, exceeded 5 billion yen,and strong sales in the Telematics Business, where the DX
Business is growing rapidly, contributed to a significant
increase in both sales and income for the full year. We
believe this will provide a major impetus for kick-starting
the Medium-Term Management Plan VISION 2023.

Redefining the business portfolio
We have redefined our business portfolio using market
attractiveness (sales growth potential, etc.), profitability,
and capital efficiency of the Company as indicators.
As for the “business that need to be addressed” and “revenue base business” which are the targets of “Change,”
we will carry out drastic business structural reforms.
Meanwhile, we will accelerate the concentration of management resources in priority business and new business ofthe next generation with high market attractiveness, as we
aim for “Growth.” (*See page 18 for details.)

Business portfolio redefinition chart
High
Market attractivenessI would like to express my heartfelt sympathy to those who have been affected by COVID-19, their families, and otherrelated persons, as well as my deepest condolences to those who have passed away. I would also like to express myrespect and deep gratitude to all those who have been making efforts to prevent the spread of the infections andmaintain social functions.

*1: Abbreviation of COVID-19 Emergency Measure*2: Operating profit, net of other income, other expenses, foreign exchange losses(gains), and other primarily temporary factors*3: Six months from Oct 2020 to March 2021

Signage on the west wall of the JVCKENWOOD head office building to show astrong commitment to Change for Growth

Low

GrowthGrowthNew business ofnext generation

Priority businessChangeChangeBusiness that needs
to be addressed
Low

Revenue basebusiness

Profitability and efficiency

Based on this redefinition of the business portfolio, effective on July 1, 2021, the Telematics Service Business of
the DX Business, a high-growth area, was incorporated
into the Automotive Sector, which is now reorganized as
the Mobility & Telematics Services Sector. At the sametime, from the perspective of SDGs, we aim to transform
into new ways of the Company as we work to solve
social issues such as reducing traffic accidents, easing
traffic congestion, ensuring driver safety, and reducing
environmental load. VISION 2023 aims to increase revenue from 273.6 billion yen in FY 2020 to more than
320 billion yen in FY 2023. In particular, the Mobility &Telematics Services Sector aims to achieve a scale of 200
billion yen in revenue, and is positioned as a core businessthat will account for 60% of our total revenue. In orderto ensure an expansion of revenue, we plan to generate
25% of the 320 billion yen in revenue in new businessdomains (Telematics Service Business, IoT platform service
business, and next-generation optical communications
device business) and their adjacent fields (such as dashcams with communication capability, broadband wirelesssystems, and portable power sources).

High

JVCKENWOOD Integrated Report 7

JVCKENWOOD’s Value Creation

Message from the CEO
Expansion of Telematics Service Business
Dashcams have achieved remarkable growth, and I, assomeone who has been involved in car electronics for many
years, feel very emotionally attached to them. Since thelaunch targeting the Aftermarket Business in 2014, salesof dashcams have been steadily increasing through OEM
sales. In addition, sales of dashcams with communication
capability for automotive insurance companies increased
sharply. As a result, total revenue of dashcams for theAftermarket, OEM and automotive insurance company

areas exceeded 30 billion yen in the previous period. The
Company forecasts that the global telematics service market
will grow at a CAGR (average annual growth rate) of morethan 9% toward 2030. In the future, it is expected thatdashcams with communication capability for the telematics
service will be used in a wide range of applications. Against
this backdrop, as a new step we plan to expand ourTelematics Service Business into a data service business thatutilizes dashcams with communication capability.

VISION 2023 financial strategy
Our financial strategy positions the three years to FY
2023 as a phase to rebuild a strong revenue base thatcan respond to drastic changes in the market environment. We will allocate management resources in a timely
and precise manner with an awareness of the cost ofcapital and with an emphasis on profitability and capitalefficiency, and work to reduce interest-bearing debts andfinancial expenses. As a key measure to achieve this, wewill implement budget and performance management
by using cash flow and ROA*4 by business sector as key
KPIs*5, and strive to improve the soundness and promote
reduction of inventories.

 ey measures and numerical targets
K(Final year of the plan)• ROE: 10% or more• Measures to return to shareholders: Dividend ratioof approx. 30%• Net interest-bearing debt: 15 billion yen or less (endof FY2023)• Strengthen budget and performance management
using cash flow and return on asset (ROA) by business sector as key KPIs
• Improve the soundness and promote reduction of
inventories
I believe that we will be able to achieve these goals by pushing through “Change for Growth.”*4: Ratio of return on total assets*5: Abbreviation of Key Performance IndicatorThree Management Principles and Four Values
Since the establishment of JVCKENWOOD Corporation in
2011, we have been committed to the corporate vision of“Creating excitement and peace of mind for the people of
the world.” In order to move forward toward the realizationof this vision, we have renewed our Management Principles
and Action Guidelines when we formulated VISION 2023.
Management Principles
Creating new value through Monozukuri
The cornerstone of the Company’s business is Monozukuri.
Often translated as “manufacturing” or “making ofthings,” the word Monozukuri in this context means
not only technology, but also all the elements that spanfrom planning, development design, design, branding,
production, quality, cost, to creating added value thatencompasses the full range of customer experience values.
No matter how the business model changes due to newtechnologies, changes in the market environment, andother factors, we want to uphold the spirit that forms ourbasis as a Monozukuri company.
 uilding a corporate culture that adapts andBembraces change
In recent years, and in the past year or so when we wereaffected amid the COVID-19 pandemic, the world changed
much faster than we had imagined, becoming like a totallydifferent world. Companies in the future will be required
to be flexible and resilient to grow while responding
promptly and flexibly to changes that are happening infront of them. We believe that such ability to respond tochanges is the source of corporate growth, and we aredetermined to tackle a changing future in a robust andpositive manner.


Investingin people to strengthen capabilities
and push boundaries
Innovation is born from a combination of multiple elemental
technologies. It requires not only core technologies such as
those in the areas of audio, visual, and communications, butalso diverse technologies and capabilities in areas such as
knowledge, art, and design. For this reason, it is necessary
for individual employees to hone their skills, ideas, and thinking while, at the same time, the organizational capabilities
to share and utilize them cross-organizationally need to bestrengthened. In order to create new value for the futuresociety, we will work on human resource development, organizational design and management to stimulate innovation.
In addition to these Management Principles, we haveestablished the following Action Guidelines as “4 Values”
that support “Change for Growth.”
4 Values	Making change happen with
own awareness and action

Change	Creating the future by creating
new business

Create		
Earning Strengthening earning power with anpowerawareness of cash flows		Achieving sustainable growth to connect
Connect
it to the future
Through the implementation of these new Management
Principles and Four Values, we are committed to making
concerted efforts to increase its corporate value so as tomeet the expectations of our stakeholders.

Promoting sustainability management
Under VISION 2023, we will further strengthen our efforts
for sustainability management that revolves aroundboth “profitable growth” and “solving social issues on a
global scale.” In promoting sustainability management,
the Company identified eight social issues (1. Society,2. Labor, 3. Environment, 4. Quality, 5. Economy, 6. Safety,
7. Governance, and 8. Value creation) that are not only
strongly related to its business but also that the Company
believes it can contribute to solving, in light of the Sustainable
Development Goals (SDGs). With regards to those eightsocial issues, we have then identified materiality (priority
issues) and set KPIs to manage progress in the initiatives
to resolve them. (*See page 38 for details of materiality.)

8 JVCKENWOOD Integrated Report

For example, the Company’s efforts to contribute to “safety
and security” and “resources and the environment” canbe expected to reduce gasoline consumption by enabling
the optimal route to be taken to a destination throughthe widespread use of car navigation systems provided
by the Company, and to contribute to the prevention of
traffic accidents through the widespread use of connected
dashcams. They will lead to safety and security for drivers,
as well as the reduction in CO2 emissions if the reductionin the number of traffic accidents causes traffic jams tobe alleviated, which will also lead to the conservation of
resources and the environment.

JVCKENWOOD Integrated Report 9

JVCKENWOOD’s Value Creation

Strengths of JVCKENWOOD
The JVCKENWOOD Group creates new value based on
its three strengths, transcending the boundaries of its
business sectors.

1

STRENGTH

Core technologies in audio, visual,communications, and design management thatcreate new corporate value

VisualAudio

Communications

Visual technology that realizes
high definition and high image
quality in a wide range of products
from dashcams to 8K projectors

Audio technology that realizes
high quality sound reproduction in any usage situation tosuit changing lifestyles

High-quality communication
technology used in missioncritical areas such as police,
fire, and emergency services

STRENGTH

2

STRENGTH

3

Developing products
and solutions in threebusiness sectors

Three characteristic brands

Products that boast the top market sharein each of the three business sectors

Developing the business activities byleveraging the uniqueness of the three brands

Mobility and Telematics Services Sector

Car navigation system

Dashcam

Mobility and Telematics Services Sector[Main Products]● Car navigation system● Dashcam● In-vehicle amplifier/Antenna/Speaker● Telematics Service

Revenue Composition Ratio by Business Sector (FYE3’/21)

Public Service Sector
Public Service Sector

Design Management

Professional
radio system

Revenue Composition Ratio by Business Sector (FYE3’/21)

Media Service Sector
Media Service Sector

Creating new corporate value
by improving brand power
and innovation through design
management[Main Products]● Headphones/Earphones● Portable power station● Music and video content
Headphones/Earphones

10 JVCKENWOOD Integrated Report[Main Products]● Professional radio system● Security system● Medical image display
monitor

Revenue Composition Ratio by Business Sector (FYE3’/21)

JVCKENWOOD Integrated Report 11

JVCKENWOOD’s Value Creation

Value Creation Process
The JVCKENWOOD Group aims to realize a sustainable society by providing value that contributes tosolving various social issues through its business activities, utilizing its strengths in audio, visual, communications, and design management.

Management capitalBusiness activities

Capital input

Products and services

Basic strategies for VISION 2023

Financial
capitalProviding value
for social issues

ChangeGrowthRebuild the revenue base

Evolution of DX business	Furtherpromote manufacturing
reform	Strategic
products for the post
COVID-19 world	
Reorganize
and consolidate
production bases

Improve profitability and ROE
commensurate with capital
investedThree business sectors and brands

Contributing to the prevention of traffic accidents toward the realization ofa safe and secure automotive society

Mobility & Telematics
Services Sector
OEM Business, Aftermarket Business,
Telematics Service Business

Manufacturing
capitalIntellectual
capitalHumancapitalCorporate Vision

Creating
excitement andpeace of mind forthe people of theworld

Research &Development

Procurement &Manufacturing

Planning &DesignSales

After-sales
service

Audio, visual, communication and design
management as the cornerstones of the company

JVCKENWOOD’s Management Principles
Creation value throughMonozukuri

Building a corporate
culture that adapts andembraces change

Threecharacteristic
brandsCreate business thatdrive sustainablecorporate growth

Public Service Sector

Contributing to disaster prevention
and mitigation in the event of abnormal weather and disasters caused byclimate change

Communications Systems
Business, Professional Systems
Business

Investing in people tostrengthen capabilities
and push boundaries

Social andrelational
capitalMedia Service Sector
Media Business, Entertainment
Business

Contributing to the creation of safe
and secure communities by deterringviolent crime

Sustainability Management & Evolution of ESG
NaturalcapitalApproach to profitable growth based on SDGs strategic themes	Strengthen
governance and further improve the effectiveness of theBoard of Directors

Cycle of value creation that contributes to profitable corporate growthManagement capitalBusiness activities

Products and services

Providing value that contributes to solving social issues

The Group possesses tangible and intangible management resources,
including finances, technology and intellectual property, brands, andhuman resources. We work to strengthen our intellectual capital,
human capital, and social and relational capital through research anddevelopment, the acquisition and development of human resources,
and the development of collaborative partners, to improve the capabilities of our value-creating resources.

The Group promotes the Medium-Term Management Plan VISION 2023
based on three Management Principles related to Monozukuri (manufacturing), building of a corporate culture, and strengthening humanresources and organization. VISION 2023 aims to create business that will
drive sustainable growth by addressing sustainability management and
ESG evolution with “Change for Growth” as the two wheels.

The Group has three characteristic brands. We are expanding ourbusiness globally by creating products that enrich people’s lives andhelp solve problems in three business sectors: Mobility & Telematics
Services, Public Service, and Media Service.

In order to realize the corporate vision of “Creating excitement andpeace of mind for the people of the world,” we create value for our
stakeholders in a wide range of areas, including contribution to asustainable society, profitable growth, the environment, and society(human resources).

12 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 13Strategies to Enhance Corporate Value over the Medium to Long Term

Medium-Term Management Plan VISION 2023
JVCKENWOOD has launched VISION 2023, a medium-term management plan
to break through the stagnation due to COVID-19 and promote new steps
toward corporate transformation under the keyword “Change for Growth”
in order to realize its corporate vision of “Creating excitement and peace ofmind for the people of the world.”
Corporate Vision

Creating excitement and peace of mind
for the people of the world
Management Principles

Positioning of the Medium-Term Management Plan VISION 2023
In recent years, the market environment has been changing at a faster pace than expected. The global
spread of COVID-19 has accelerated technological innovation through Digital Transformation (DX), andthe business environment surrounding our company is undergoing a major shift.
In this environment, we have formulated a new Medium-Term
Management Plan VISION 2023, which aims to make a leap
forward to become an excellent company with both strengthand toughness in order to increase corporate value over the
medium to long term even in a drastically changing businessenvironment. To achieve this goal, we have positioned theperiod from FY 2021 to FY 2023 as a three-year period under thetheme of “Change for Growth,” with a focus on strengthening
the revenue base of existing business and establishing new
growth areas by redefining our business portfolio.

Creating value through Monozukuri

Change for Growth

Building a corporate culture that adapts
and embraces change
Investing in people to strengthen capabilities
and push boundaries

VISION 2023
(2021-2023)F urther strengthen the revenue base(2018-2020)

EarningPower

14 JVCKENWOOD Integrated Report

Becoming an excellent
company with strengthand toughnessA ccelerate growth through highly
profitable business

VISION 2020

4 Values

ChangeCreating excitement andpeace of mind for the peopleof the world

CreateImplemented COVID-19
Emergency Measures ransform into a structure capableTof earning stable profitsImplemented company-wide
fixed cost reforms

Redefine business portfolioLaunched DX BusinessConnect

Breaking through thestagnation of COVID-19 andtaking new steps toward
corporate reforms

 ustainable enhancement ofS
corporate value

 xpand Mobility & Telematics
E
Services BusinessContinue to promote both the resolution of social issues
and sustainability (SDGs) management

JVCKENWOOD Integrated Report 15Strategies to Enhance Corporate Value over the Medium to Long Term

Recognition of External Environment and Basic Strategies

Recognition of external environment and key themes for VISION 2023

Medium-Term Management Plan VISION 2023

Basic strategies of the Medium-Term Management Plan VISION 2023

reation and innovation of newCtechnologies and business models
such as AI and IoT, substitution ofexisting business and stimulation of
new demand.
 cceleration of digitization and theAconvergence of reality and digital.
 ovement to seek solutions to socialM
issues through corporate activities,
such as the increase in ESG investors
and the spread of the SDGs.

 usiness impact of prolonged spread ofB
COVID-19.
 orsening of global supply chain risksW
for semiconductors.
Risks

Opportunities

Recognition of external environmentGrowing global geopolitical risk.
 upply chain disruptions due to climateSchange.
Impact of U.S.-China trade friction on
the global economy.

 espond to drastic changes in the market environment and shift to anRearnings structure that earns stable business profits.
Clarify strategies and allocate resources by redefining the business portfolio.

Key themes evelop new business through expansion of the Mobility & Telematics
D
Services Business and further evolution of the DX Business.
 romote sustainability management based on “profitable growth” andP“solving social issues on a global scale.”

As a result of analyzing the market environment
surrounding our company, JVCKENWOOD believes
that there are opportunities in the creation andinnovation of business models through newtechnologies and DX such as AI and IoT, thesubstitution of existing business and the stimulationof new demand, the acceleration of digitalizationand the fusion of real and digital.
We also see opportunities in management
focusing on ESG and seeking solutions to social

16 JVCKENWOOD Integrated Reportissues. We also recognize that there are risks
such as the business impact of the prolonged
spread of COVID-19, the worsening risk ofglobal supply networks for semiconductors, theexpansion of global geopolitical risks and supply
chain disruptions caused by climate change.
In formulating VISION 2023, we considered theabove four key themes based on our awarenessof the external environment regarding theseopportunities and risks.

ChangeGrowthRebuild the revenue base

Evolve DX Business urther promoteF
manufacturing reforms

 trategic products for theSpost COVID-19 era eorganize and consolidateRproduction bases

Improve profitability andROE commensurate withinvested capital

Sustainability management & evolution of ESG
Approaches to profitable growth based on SDG strategic themes
Strengthen governance and further improve the effectiveness of
the Board of Directors

As a result of examining key themes based on our recognition of the external
environment, we have set the basic strategy for VISION 2023 as “Change for Growth.”
In the area of “change,” we aim to (1) rebuild our revenue base by redefining our businessportfolio, (2) further accelerate manufacturing reforms by promoting automation andreturning to domestic production, and (3) enhance manufacturing cost competitivenessby reorganizing and consolidating production bases.
In the area of “growth,” we will take on the following challenges: (1) Evolution of the
DX business by expanding into the IoT platform service business, (2) Expansion of new
products and new sales channels for the post COVID-19 era, and (3) Improvement of
capital efficiency and ROE with an awareness of capital costs.
We will further evolve sustainability management and ESG based on “change” tostrengthen the earnings base of existing business and “growth” to expand growthbusiness by creating new products and new business.

JVCKENWOOD Integrated Report 17

Strategies to Enhance Corporate Value over the Medium to Long Term

Outline of Medium-Term Strategy
Under VISION 2023, we will strengthen ourrevenue base through structural reforms(“Change”), expand growth business by
expanding new products and sales channels
and creating new business (“Growth”), andpursue initiatives that combine “profitable
growth” with “solving social issues on a
global scale” (sustainability managementand ESG evolution).

Medium-Term Management Plan VISION 2023

ChangeGrowth2

GrowthNew business to
support growth

Sustainability management &evolution of ESG

1ChangeWe are aggressively entering into
areas adjacent to our existing
business (new markets or new
products) and new areas, aiming
for a 25% revenue ratio in these
two areas.

Market attractiveness

Low

Priority businessBusiness that needs
to be addressed• Consumer and professional camera business• Projector and medical monitor business•
In-vehicle mechanical products and optical
pickup business• Mobility business (OEM factory-installed anddealer-installed products)• Broadband wireless business• Dashcams for automotive insurance

ChangeRevenue base business• Mobility business (aftermarket)• Professional communications systems business• Entertainment businessProfitability and efficiency

Low

High

FY 2020
DX Business,othersMedia
Service Sector

FY 2023
Automotive Sector

7%

18%

18%
Revenue composition
ratio
52%
(273.6 billion yen)

PublicService Sector

Media
Service Sector

Telematics
Service Business

22%

18 JVCKENWOOD Integrated Report

1%

Mobility &Telematics
Services Sector

Revenue composition
ratio
60%
% (320.0 billion yen)21

We will expand the telematics
service business by expanding
the business area to include thedashcam business which boasts
the top-class market share, thehigh-functioning dashcam service
business that effectively utilizes
communication-type dashcams,
and the data service business as
the IoT platform service business.

Adjacent Fields• Communication type dashcams

Telematics service
business
IoT platform
service business
Next-generation
opticalcommunication
device business• Electronic mirror dashcams• In-vehicle electronics appliances• Broadband wireless system• AI temperature monitoring station• Compact immunoassay system• Portable power supply• Air purifier/sterilizer/deodorizer• Remote camera system

Adjacent

New

FY 2023

Expand the business domain by creating a data service business using communication-type dashcams
Value provided

GrowthNew business ofnext generation• Telematics service business• IoT platform service business• Next-generation optical device businessChangeMobility &New/
Adjacent Telematics
Services Sector
fieldsPublicService Sector

FY 2020

Redefine the Business Portfolio and Sustainably Enhance Corporate Value
Growth25%

New fields

Existing

We will redefine our business portfolio based on both the attractiveness of the market and our own profitability andcapital efficiency. For business that needs to be addressed, we will consider profit improvement, withdrawal or downsizing
through a drastic strategic review, and reconfigure our profit structure to focus on priority business and next-generation
new business that can take advantage of our strengths and core competencies.

High

273.6
billion yen

320.0
billion yen

Phase 3 IoT Platform Service Business
Expansion into data service business anddevelopment of new business areas

IoT platform

Phase 2 High-functioning Dashcam Service Business
Create a service business by improving
the added value of devices

Road diagnosis
services

Phase 1 Dashcam Device BusinessOne of the leading manufacturers
in the dashcam market

Driver-assistanceservices

Telematics services
for automotive
insurance

Taxi dispatch service

Expansion of business domain

3

Sustainability management & evolution of ESG

In VISION 2023, we aim to enhance corporate value by further activating activities
to promote sustainability management that focuses on both “profitable growth”
and “solving social issues on a global scale.” In addition, we have formulated a
new medium-term environmental plan linked to VISION 2023. We will comply withenvironmental laws and regulations in all of our products and business activities, andcontribute to the realization of sustainable use and coexistence of energy, resources,
and living things, which are assets of the Earth, including responses to climate change.

Approaches to profitable growth based on SDG strategic themes
Strengthen governance and further improve the effectiveness of the Board of Directors

JVCKENWOOD Integrated Report 19Strategies to Enhance Corporate Value over the Medium to Long Term

Message from the CFO

Medium-Term Management Plan VISION 2023
cash flow over the cumulative three years of the VISION
2023 period, we plan to reduce the ratio of interestbearing debts to equity (D/E ratio) to 1.0 or less at the endof FY 2023.

While making investments with an emphasis on
profitability and capital efficiency with an awareness of the cost of capital, we will work to reduce
interest-bearing debts and financial expenses toachieve sustainable growth in corporate value.

Cash flow allocation
Under VISION 2023 we will focus on generating cash flow
and ensure an effective outflow of cash after making theuse of funds clear.

Representative Director of the Board, Senior Managing Executive Officer,
Chief Financial Officer (CFO)

As for inflows of cash, 80 billion yen is expected withcash of 10 billion yen resulting from the business andsale of assets selected from the perspective of capitalefficiency, in addition to operating cash flow.

MIYAMOTO Masatoshi

Basic
policy llocate management resources in a timely and precise manner, with an awarenessAof the cost of capital and an emphasis on profitability and capital efficiency
 educe interest-bearing debts and financial expenses while equalizing repayments
Reach fiscal year

Performance results andreview of the Vision 2020

Financial targets

In FY 2020, we were greatly affected by the spread of
COVID-19 that had emerged during the immediately preceding fourth quarter of FY 2019, mainly during the first
half. We were also affected by tight supply and demandof semiconductors in the fourth quarter. As a result,revenue for the full year decreased to 273.6 billion yen.
However, thanks to cost-reduction efforts in addition toa recovery in sales in the second half, operating profit
amounted to 4.9 billion yen, securing an increase inincome. On the other hand, ROE was 3.6%, which was
below the target of ROE 10% as set forth in the financial
targets in the Medium- to Long-Term Management Plan
VISION 2020.

Sales revenue

Numerical
targets

320

Meanwhile, by earning 70 billion yen or more in operatingCore operating
income12

Ratio of profit attributableto owners of the parent
company (ROE)

10% or morebillion yen or morebillion yen or more

(FY 2023)(FY 2023)

273.6 billion yen

7.5 billion yen

3.6%(FY 2020)(FY 2020)(FY 2020)

Consolidated dividend
ratio

Ratio of equity attributableto owners of the parent
company to total assets

approx. 30%

30% or more

(FY 2021–FY 2023)

Under the Medium-Term Management Plan VISION 2023,
we aim to achieve revenue of 320 billion yen or more,core operating income*1 of 12 billion yen or more, andROE*2 of 10% or more by FY 2023, the final year of theplan, by steadily implementing the business strategies set
forth in “Change for Growth.” In addition, we aim toboth maintain growth and secure stability by achieving
a ratio of equity attributable to owners of the parent
company to total assets, which is a measure of financial
stability, of 30% or more at the end of FY 2023 while
paying stable dividends with a target dividend payout
ratio of 30%.

(FY 2023)

Operating cash flow

70

billion yen or more(cumulative total for FY 2021 to FY 2023)

Toward permanent strengthening ofbusiness structure
As a measure to strengthen our business structure, we had
been implementing the “management reform throughmanufacturing reforms” across the Company since 2018,and have further expanded the scope of our management base reform activities since 2020. In addition, in FY
2020, we promoted the COVID-19 Emergency Measure(CEM) project as an urgent countermeasure based on the

Cash-inRatio of interest-bearing
debts to equity (D/E ratio)

Return to shareholders
One of the main pillars of our financial strategy is thestable distribution of profits to shareholders. At the sametime, securing management resources for future growth
is a top management priority. Accordingly, we will decideon dividend of surplus, etc. by considering our profitability and financial position comprehensively. Based on suchpolicy, VISION 2023 plans to pay dividends with a target
dividend payout ratio of 30%.
Meanwhile, in order to respond to future changes in thebusiness environment, we will effectively utilize retained
earnings to strengthen our financial structure, realize
stable dividends on an ongoing basis, strengthen ourmanagement structure for future business development,
and invest in growth areas.
*1: Operating profit, net of other income, other expenses, foreign exchange losses(gains), and other primarily temporary factors*2: Ratio of profit attributable to owners of the parent company*3: Ratio of return on total assets*4: Abbreviation of Key Performance Indicators

Cash-out

Business/Sale of assets/
Others (10 billion yen)

Strategic investment andothers (20 billion yen)

(FY 2023)

Investment in growth businessTechnological platform development
 tructural reforms, business base reforms, IT
S
investment, work style reforms, etc.
SDGs

Cash flows fromoperating activities(70 billion yen)

Dividends/Interest-bearing debt repayment
Ordinary investment(60 billion yen)

Others

1.0 or less
(FY 2023)

38.1%

24.5%

35.8 billion yen

1.2(FY 2020)(FY 2020)(FY 2020)(FY 2020)

20 JVCKENWOOD Integrated Report

On the other hand, with regard to outflows of cash, wewill make strategic investments, pay dividends, and repay
interest-bearing debts within the limit of 20 billion yen,after excluding ordinary investments of 60 billion yenthat are necessary to maintain the business. In particular,
strategic investments are expected to include investments
in growth business, development of technological platforms, structural reforms, business base reforms, and IT
investments. In addition, by using cash flow and ROA*3
by business sector as key KPIs*4, we aim to improve theaccuracy of investment judgment and post-investment
budget and performance management.

assumption of lower limit of sales risk due to the spread of
COVID-19. In this project, all fixed costs, including inventories, capital investment, and development expenses,
were reduced in order to thoroughly control outflows
of cash. These measures produced results greater than
expected at the beginning of the fiscal year. Some of these
initiatives are related to the suspension or postponementof non-essential and non-urgent measures, however,others have led to the improvement of our management
structure. We intend to continue those activities to getthese structural reforms embraced deeply and promote
the permanent transformation of our business structure.

80 billion yen*

*Total for the three years from FY 2021 to FY 2023

JVCKENWOOD Integrated Report 21

Strategies to Enhance Corporate Value over the Medium to Long Term

At a Glance

Medium-Term Management Plan VISION 2023

We will aim to continuously enhance corporate value by redefining our business portfolio for“Change for Growth” from the perspective of market attractiveness (growth characteristics,etc.), profitability and capital efficiency of JVCKENWOOD.

Mobility & Telematics
Services Sector
Revenuecomposition
ratio*2

57.4%

Outline of BusinessBusiness, Business Units (BU), and Major Sales Channels

The sector is composed of three businesses: the OEM Business which provides
products through automobile manufacturers and dealers, the Aftermarket
Business which provides products to customers through mass merchandisersand distributors, etc., and the Telematics Service Business that provides
various solutions centered on communication-type dashcams in collaboration
with automotive insurance companies and other service providers.

OEM Business• Dealer-installed products
Automobile manufacturers and dealers in Japan,
Southeast Asia, etc.
• Factory-installed products
Automobile manufacturers and component
manufacturers around the world

Theme of VISION 2023

• Collection and analysis ofvehicle data and development
of data service business• Expansion and development ofbusiness through provision oftelematics services based oncommunication-type dashcams

Aftermarket Business
Mass merchandisers, distributors, etc. in Japan andoverseas
Telematics Service Business
Automotive insurance companies, ride-sharing service
companies, taxi and transportation companies, etc.

RevenueCore operating income*1(Million yen)

(Million yen)

180,000

10,000171,435 169,532

157,131
149,790

148,123

Revenuecomposition
ratio*2

22.3%

The sector is composed of the Communications Systems Business
which handles professional and amateur radios, and the Professional
Systems Business which handles imaging solutions, audio solutions,and healthcare.

Theme of VISION 2023

• Increase in market share of theNorth American Public Safety
Market (P25 Radio)• Strengthening of broadband
business through collaboration• Creation of bio-device businessCommunications Systems Business
Public safety market (for use by police, fire departments,
ambulance services, etc.)
Public service market (providers of electricity, water, gas, etc.)
Private sector market (hotels, retailers, event companies, etc.)
Professional Systems Business• JVCKENWOOD Public & Industrial Systems Corporation
Companies, education, public services, distribution,social infrastructure, amusement facilities, etc.
• Healthcare
Medical and research institutes

60,0002,500

Revenuecomposition
ratio*2

18.3%

The sector is composed of the Media Business which handles headphones/
earphones, portable power stations, imaging devices, etc., and theEntertainment Business with JVCKENWOOD Victor Entertainment
Corporation, a Group company, as its core.

00(Million yen)

2017/3 2018/3 2019/3 2020/3 2021/3*4(Million yen)

80,0004,000
73,382

70,944 70,676
2,928

65,03560,88160,0002,000

Theme of VISION 2023

• Strengthening of well-being
product lineups• Expansion of next-generation
optical-communication-related
business with an eye to 6G• Strengthening of streaming
artist development

Entertainment Business• Content business
CD shops, EC sites, music distribution sites, etc. in Japan

1,865

1,829

40,000628

020,0000Media Business• Solution BU
Companies, local governments, broadcasting stations,distributors, etc. in Japan and overseas• Lifestyle BU
Mass merchandisers, distributors, etc. in Japan and overseas• Imaging Device BU
Video equipment manufacturers in Japan and overseas• Branding BU
TV and audio manufacturers overseas• Contract production business
Record companies, movie companies, publishingcompanies, etc. in Japan

1,914
1,190

(Million yen)

2017/3 2018/3 2019/3 2020/3 2021/3(Million yen)

80,0003,000
71,39760,000-1,519-2,0002017/3 2018/3 2019/3 2020/3 2021/3

Media Service Sector

5,610

5,607

5,000

2017/3 2018/3 2019/3 2020/3 2021/3*3

Public Service Sector

7,601

7,500
120,000

2,599
58,972 58,795

2,217

55,40250,0932,000

40,0001,000

841

20,000
374

0

503

0
2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3*1: Operating profit, net of other income, other expenses, foreign exchange losses (gains), and other primarily temporary factors*2: Revenue composition ratio for FYE3/2021. Calculated by rounding to the nearest first decimal place.
*3: For FYE3/2021, revenue from the Telematics Service Business of the former DX Business Division was added to that of the former Automotive Sector.
*4: For FYE3/2021, core operating income from the Telematics Service Business of the former DX Business Division was added to that of the former Automotive Sector.

22 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 23

Strategies to Enhance Corporate Value over the Medium to Long TermBusiness Strategy

Medium-Term Management Plan VISION 2023

Future initiatives

Mobility & Telematics
Services Sector

In the Mobility & Telematics Services Sector, JVCKENWOOD
aims to reach a business scale of 200 billion yen by FY 2023,
the final year of the Medium-Term Management Plan VISION
2023, through restructuring of the business portfolio.

Overview of segment
The Mobility & Telematics Services Sector is composedof three businesses: the OEM Business which provides
products through automobile manufacturers and dealers,
the Aftermarket Business which provides products throughmass merchandisers and distributors, and the Telematics
Service Business which deploys various solutions centeredon communication-type dashcams via collaboration withservice providers such as automotive insurance companies.
The OEM Business is carried out in two channels, namely
the dealer-installed (dealer option) channel and thefactory-installed (manufacturer option) channel. With
respect to dealer-installed products, we continue toreceive orders for large-scale projects, mainly from major
Japanese automobile manufacturers. In addition to car
navigation systems and display audio systems, orders are
increasing in the in-vehicle optical-related field which
includes dashcams and in-vehicle cameras with growing
demand. With respect to factory-installed products,
in-vehicle EMS*1, speakers, amplifiers, antennas and cableproducts are mainly developed and provided to automobile
manufacturers in Japan, the United States, Europe andChina. This is done mainly through JVCKENWOOD Hong
Kong Holdings Limited and ASK Industries S.p.A whichbecame subsidiaries in 2013 and 2015, respectively.

The Aftermarket Business is experiencing a shrinking
trend in the conventional car audio market both in Japanand overseas. But we have secured a top-class positionin the car navigation systems where we have utilized
our strength. In Japan, where dashcams are becoming
increasingly popular, we propose products that realize
high performance, high reliability, and high-quality video
recording by merging our in-vehicle technology andvideo/optical technology cultivated in the past, securing a
top-class share in the market.
The Telematics Service Business is centered on sales ofcommunication-type dashcams to the automobile insurance,ride-sharing and truck transportation industries basedon knowledge of various technologies and insight into
customer issues cultivated through global marketing. By
disseminating telematics services to society, we contributeto solving various mobility-related issues of stakeholders,such as ensuring passenger safety, improving the quality of
response by automotive insurance companies in the eventof an accident, and improving management efficiency oftrucking companies.

In OEM dealer-installed products, we will increase
orders by proposing new products, in addition to the
car navigation systems and dashcams for the mini andcompact car market that is expected to remain firm in thedomestic market. Orders including display audio systems
for increasing Japanese automobile manufacturers will
also be increased in the Southeast Asia market. As forfactory-installed products, we will strengthen initiatives
to increase sales through in-vehicle business involving
eCall (vehicle emergency communication system)
communications and acquisition of new customers in theEuropean and Chinese markets by ASK.

In the Aftermarket Business, the conventional car audio
market is experiencing a shrinking trend in both Japan andoverseas. Nevertheless, we will work to increase sales ofcar navigation systems and dashcams by strengthening
our approach to markets such as leasing and used carmarkets that have room for development. Furthermore,by introducing new products such as in-vehicle electronic
appliances, air purifiers, sterilizers and deodorizers, we will
work to maintain and expand the business scale.
In the Telematics Service Business, we will further expand
business by globally expanding the high-functioning
dashcam business, already highly recognized in the market,
and expanding product lineups. Furthermore, centeringon communication-type dashcams, we will provide newtelematics services by developing business for automotive
insurance companies and data service business utilizing
vehicle data.

FY 2023 (FYE3/2024) Target: Adjacent and new field sales ratio of 30%
FY 2021 (FYE3/2022)

FY 2023 (FYE3/2024)

FY 2022 (FYE3/2023)

12%

22%

88%

78%

Major themes for
adjacent andnew fields• Telematics service business• IoT platform service business

30%
70%

• Communication-type dashcams• Electronic mirror dashcams• In-vehicle electronics appliances

Priority strategy*1: Abbreviation of Electronics Manufacturing Service; a contract manufacturingservice for electronic equipment.

Global telematics service market*2(Unit : million unit)

200

+9%

Evolution of MaaS

Main products

150
Driver safety
and security

Taxi dispatch
service

Telematics services
for automotive
insurance

Reduction of
traffic accidents
Reduce traffic
congestion

IoT Platform

100
50

Development of the telematics service business

Car navigation system

24 JVCKENWOOD Integrated Report

DashcamIn-vehicle amplifier/Antenna/Speaker

CAGR*3

0
2020

2023

2025

2030

Data source: Company estimates based on various secondary data

*2: Cumulative total number of vehicles (passenger cars and commercial vehicles) that have access to a variety of information services in real time via a communications system*3: Abbreviation of Compound Average Growth Rate, meaning an annual average growth rate

JVCKENWOOD Integrated Report 25

Strategies to Enhance Corporate Value over the Medium to Long Term

Mobility & Telematics Services Sector

Medium-Term Management Plan VISION 2023

Expand the business domain by creating a data service business using communication-type dashcams
Value provided

Medium- tolong-term scenario
of Telematics
Service Business

Phase 2High-functioning dashcam service business

Phase 3 IoT Platform Service Business
Expansion into data service business anddevelopment of new business areas

IoT platform

By cooperating with automobile manufacturers and automotive insurance companies, we will launch into the high-functioning dashcam
service business which will allow seamless response through utilization of communication-type dashcams in case of an accident.

Phase 2 High-functioning Dashcam Service Business
Create a service business by improving
the added value of devices

In addition, in line with these services, we will provide a comfortable in-vehicle space through in-vehicle Wi-Fi functions,allowing the use of in-vehicle devices without having to be concerned about communications charges.

Road diagnosis
services

Phase 1 Dashcam Device Business

Automotive insurance company

One of the leading manufacturers
in the dashcam market

Driver-assistanceservices

Telematics services
for automotive
insurance

Taxi dispatch service

Expansion of business domain

External services

We will expand the Telematics Service Business by extending the business domain to data service
businesses, namely the dashcam device business which has achieved a top-class market share, thehigh-functioning dashcam service business which effectively makes use of communication-type dashcams with a scale of a cumulative total of one million units, and the IoT platform service business.

Supported devices

Smartphone
TabletGame console

Phase 1

IoT platform service businessIn the dashcam device business, we have acquired the top-class market share position in the dashcam market in Japan, achieving
revenue of more than 30 billion yen company-wide (total for Aftermarket, OEM, DX business for automotive insurance companies, etc.)
in FY 2020. We will continuously expand product lineups and develop sales channels with the aim of further expanding the business.
Communication-type dashcams for automotive insurance companies are developed and supplied to automotive insurancecompanies, providing safety and security through their rapid response and driver assistance functions in emergency situations.

C ommunication-type dashcam for automotive insuranceP roviding safety and security with rapid response to emergencies
and driver assistance functions• Development and provision of devices
and software• Kitting service
360 degree recording
dashcam

Laptop PC

Phase 3

Dashcam device business ained top-class share in theGdashcam market

Video streaming, SNS,music streaming

Dual camera type dashcam

Automotive insurance companies• Automatic accident emergency
call service• Driving report• Support for safe driving• Alert monitoring service• Constant recording function

By expanding the business domain to the dataservice business for Telematics Service Businessexpansion, we will launch the IoT platform service
business integrated with the high-functioning
dashcam service business.
Specifically, we will consider providing a roaddiagnosis service that diagnoses/analyzes thestatus of deterioration of roads and utility poles,
and supports road route management as well as
repair plans. A service for drivers that analyzes
their emotions and physical conditions andsupports their optimal driving is also considered.

Road diagnosis service

Driver assistance service

Development into a new IoT platform service business
Besides the telematics services, we are working to develop a next-generation IoT
platform service with multipurpose communication that can be enjoyed and thatconnects people, time and space. Our core technologies such as a low-latency codec,
sound field localization, multi-camera synchronization and studio engineering will
be put to full use to create a cloud-based next-generation communication space
platform. The platform, for example, will allow music creators and artists, whether
professional or amateur, to post musical pieces on the cloud, have listeners listen
to the music pieces and buy them, and be scouted by professionals. Online live
performances connecting the real and the virtual can also be held. In addition, ourunique and new IoT platform service business will be proposed by putting together
company-wide management resources including each business sector, JVCKENWOOD
Design Corporation, and JVCKENWOOD Victor Entertainment Corporation. The new
business will provide virtual spaces in scenes of conferences, exhibitions and others.

Communication space service• Virtual studios and virtual spaces connect different places to holdlive performances and sessions.
• P rovide a place to enjoy multipurpose communication.

Rearview dashcam

26 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 27

Strategies to Enhance Corporate Value over the Medium to Long TermBusiness Strategy

Medium-Term Management Plan VISION 2023

Future initiatives

Public Service Sector

In the Public Service Sector, JVCKENWOOD aims tostrengthen its earnings power by enhancing productivity
and achieve sales growth by expanding its business areas
into growth markets.

Overview of segment
The Public Service Sector comprises the Communication
Systems Business, which provides professional and amateur
radio systems, and the Professional Systems Business, which
offers imaging solutions, audio solutions and healthcare.
The Communication Systems Business provides highly
reliable professional digital radio systems to the public
safety market (e.g., police, fire departments and ambulanceservices), the public service market (e.g., electricity, water,
gas and transport) and the business industry market (e.g.,
hotels and retailers).
In the public safety market, EF Johnson Technologies, Inc., agroup company in the U.S., furnishes total solutions comprisedof professional radio systems and communications commandand control consoles for North America, conforming to
Project 25 (P25), which is a digital audio format, and these
total solutions have garnered a high reputation in the market.
Similarly, in the public service market and the business industry
market, the Communications Systems Business offers a rangeof solutions that link with face recognition security systems,
leveraging broadband communications, and suspicious object
detection systems for event venues as well as solutions toneeds on the ground, such as in electricity, gas and water
stations, and they are highly appreciated by customers.

The Professional Systems Business is developed andexpanded by JVCKENWOOD Public & Industrial Systems
Corporation, a group company (“JKPI”) to provide security
systems and imaging security solutions, including facerecognition systems, for a broad range of markets fromeducation and public facilities to wholesalers/retailers,social infrastructure, and amusement, as well as to offer
audio solutions, such as disaster prevention broadcasting
systems for municipalities and conference hall systems.
The strength of JKPI lies in its total engineering systemthat plays the role of a one-stop shop to offer functions
ranging from design to construction to maintenance andmanagement, intended for solving customer problems.
In the healthcare field, in addition to high-precision medical
image display monitors, as the main product category,that display mammography images and various types ofradiographic medical images, the Professional Systems
Business deploys its unique image and video processing
technology and optical disc technology to provide Gazefinder,
which assists in the diagnosis of autism spectrum disorders andearly screening of dementia, and ExoCounter, an exosome*1
measurement system that employs Blu-ray technology.

The Communication Systems Business will strengthen its
broadband solution business by making full use of the
management resources of its current wireless business,
including cooperation with other companies. At thesame time, it will strive to expand the market share ofits conventional narrow-band radio business and rebuild
the profit basis in the professional radio system market, inwhich the broadband market is projected to grow in themedium to long term.

The Professional Systems Business will focus on expanding
sales of network camera systems and launching thesensor business as well as engaging in sales expansionof imaging security solutions. Additionally, efforts will bemade to grow business by putting AI body temperature
stations and other merchandise for the pandemic andpost-pandemic environments on the market and reinforce
the earnings base through fixed cost reform. Furthermore,in the healthcare field, in addition to expanding sales of
medical image display and pathological image display
monitors, the Professional Systems Business will promote
disposal services and expand sales through its earlycommercialization by utilizing a compact immunoassay
device jointly, developed with Sysmex Corporation, andexpanding sales of test cartridges.

FY 2023 (FYE3/2024) Target: Adjacent and new field sales ratio of 11%
FY 2021 (FYE3/2022)

4%
96%

Major themes for
adjacent andnew fields

FY 2023 (FYE3/2024)

FY 2022 (FYE3/2023)

7%

11%

93%

• Broadband radio system• Compact immunity measurement
system, etc.

89%

• AI body temperature measurement solution

Priority strategy*1: Vesicles about 50 to 100 nm in diameter secreted by many types of cells foundin body fluids, such as blood, saliva, and urine.

Global professional communications systems market(Unit : billion JPY)CAGR*2

4000

+6%

3000

Main products
2000
1000
0
2020
Broadband

Professional radio system

28 JVCKENWOOD Integrated Report

Security system

Medical image display monitor

Conceptual image of broadband solution business

2023

2025

2030

LMR

*2: Abbreviation of Compound Average Growth Rate,meaning an annual average growth rate.
Data source: Company estimates based on various secondary data

JVCKENWOOD Integrated Report 29

Strategies to Enhance Corporate Value over the Medium to Long TermBusiness Strategy

Medium-Term Management Plan VISION 2023

Future initiatives

Media Service Sector

Overview of segment
The Media Service Sector consists of the Media Business,
which deals with products, including headphones andearphones, portable power stations and imaging devices,and the Entertainment Business, in which the groupcompany JVCKENWOOD Victor Entertainment Corporation(“Victor Entertainment”) plays the core role.
In the Media Business, JVCKENWOOD runs four business units
by utilizing three brand assets: KENWOOD, JVC, and Victor,
and focuses on development of distinctive technologies andproducts, and a proposal-based business approach.
The Lifestyle Business Unit offers portable power sourcesthat can be used outdoors and for disaster prevention
applications. It also offers Bluetooth®-compatible headphones
and earphones that deliver high-quality sound reproduction
wirelessly and specialized headphones and earphones for
specific purposes and applications, such as sports models andhigh-resolution models. While it offers audio systems, suchas the Wood Cone series that features wooden diaphragms,
and long recording/playback models and all-weather video
cameras for expected use in outdoor activities and sports.
The Solution Business Unit expands the business ofprojectors and professional video cameras to meet theneeds of professionals. Projectors are used not only in hometheaters, but also in flight simulators and planetariums byconnecting with systems comprised of various pieces ofequipment. Professional video cameras are highly evaluatedfor their ability to deliver high-quality videos from sites
where the video is taken to studio stations by enhancing
the immediacy and reliability of network connections. They
have been employed broadly by broadcasting stations
while expanding into the live sports broadcasting and live
streaming markets.
The Imaging Device Business Unit focuses on external salesof D-ILA*1 reflective LCD panel devices, and is expanding
sales for application to optical communications, where
demand for use in 5G communications infrastructure is
rapidly expanding, in addition to projector applications.
The Branding Business Unit has earned stable revenues andprofits from royalties from licensing the JVC brand, primarily
for television and audio products in overseas markets.
In the Entertainment Business, Victor Entertainment, as thecore, is looking to strengthen its sound source business byseeking and nurturing new artists and expand and reinforce
its non-music business including live events.
*1: Direct drive Image Light Amplifier

In the Media Service Sector, JVCKENWOOD aims to improvethe earnings base of its existing core businesses and expand
its market share in growth markets.

resources will be concentrated on high value-added models
that leverage D-ILA high-definition reflective LCD panel
devices in an effort to strengthen the capability to earn profits.

The Lifestyle Business Unit will promote the provision andstrengthening of lineups of wellbeing products, such as portable
power supplies, solar panels, and sterilizers/deodorizers forthe markets that help consumers enjoy safe, secure, andcomfortable living, which are growth markets. Simultaneously,
the BU will strengthen its proposals of strategic products, suchas compact components, web conferencing devices, andsmart headsets for stay-at-home demand that is expanding
during the pandemic and remote work and telework that has
taken root as workstyles in the new normal.

The Imaging Device Business Unit is expanding the applicationof D-ILA high-definition reflective LCD panel devices into
other fields, such as high-speed optical communication
applications for 6G, and is working on new applications as
the next-generation optical communication device business.

The Solution Business Unit will shift resources of professional
video cameras to the remote camera-related market, where
demand is growing. In the projector business, development

In the Entertainment Business, in addition to strengthening
the sound source business, primarily focusing on packages,
JVCKENWOOD will strive to raise its market share in themusic streaming business by stepping up the effort tonurture streaming artists. Additionally, an initiative isunderway to strengthen its non-music business, such aslive events and artist management.

FY 2023 (FYE3/2024) Target: Adjacent and new field sales ratio of 15%
FY 2021 (FYE3/2022)

9%
91%

Major themes for
adjacent andnew fields

FY 2023 (FYE3/2024)

FY 2022 (FYE3/2023)

12%

15%

88%

• Next-generation optical communication
device business• Air purifier/sterilizer/deodorizer

85%• Portable power supply• Remote camera system

Priority strategy
Application examples of reflective LCD panel D-ILA device

Global WSS unit market(Unit : 1,000 unit)

CAGR*2

400

+12%

300

Main products

200
100
Spatial light modulator (SLM)

Wavelength selective switch (WSS)
0
2020

2023

2025

*2: Abbreviation of Compound Average Growth Rate,meaning an annual average growth rate.

Headphones/Earphones

30 JVCKENWOOD Integrated Report

Portable power station

Music and video content

Data source: Company estimates based on various secondary data

JVCKENWOOD Integrated Report 31

Strategies to Enhance Corporate Value over the Medium to Long Term

Strategies to Enhance Corporate Value over the Medium to Long Term

Manufacturing Reforms andStrengthening of Business Structure

Technology Development
Strategy

JVCKENWOOD is reviewing the production, design, and procurement
processes, such as optimizing the number and scale of the production
bases, to build a structure that can generate stable profits.

Based on the JVCKENWOOD’s strengths in audio, visual, communications,and design management, we aim to provide sustainable value throughtechnology that responds to people’s instincts and desires throughresearch and technology development for the next generation.

Manufacturing reforms

Technology strategy

Consolidate production bases to a scale commensurate with total production
volume and man-hours, with a focus on promoting automation, returning todomestic production, and building a supplier ecosystem

Creating the future by connecting people,
time and space through research, development and design

Creating value through Monozukuri
In the area of manufacturing reform, JVCKENWOOD aims tointegrate production bases to a scale that is commensuratewith total production volume and man-hours by returning
to domestic production and promoting the automation of
production bases. In addition, by reviewing design process
standards, we will minimize business-specific individual
optimization and make efficient use of existing tools andequipment. At the same time, we will strengthen ourefforts to integrate value engineering and cost reduction
design through procurement reforms, and to build an
ecosystem with partner suppliers. Based on these activities,
we will transform the Company into a structure that canearn stable profits.

Technology development, product design, and quality assurance

Optimize production technology, product manufacturing, andproduction bases

Improve technological capabilities through integrated
management across business sectors
Reduce fixed costs through efficient use of facilities
Improve the mobility of human resources to keep management
resources “fresh”

Medium-Term Management Plan VISION 2023

R&D

The theme of our technology development strategy in
the Medium-Term Management Plan VISION2023 is“Connecting people, time and space to create the future.”
Based on our strengths in audio, visual, communications,and design management, we aim to provide sustainablevalue through research and technological development

2that focuses on the next generation and technology that
responds to people’s instincts and desires. By adding design
to the traditional research & development, we will provide
new value through user experience value and co-creationfrom the customer’s perspective through our brands.

Digital transformation
Brand

I ntegrated operation of production and manufacturing technologies
at manufacturing sites
Maintain appropriate manpower and reduce fixed costs byreorganizing bases
Advance management resources through promotion of automation

VisualInterference
type AIStrengthening business structure

Location
info.

DesignSecurity

Customerperspective

Communications

CO-creativity
UX
experience

Biological
info.
5G/6G

Promoting total cost reform
JVCKENWOOD is implementing company-wide management base reform activities to strengthen our businessstructure. In the fiscal year 2020, we rolled out the CEM
Project as an emergency measure against the COVID-19,
and promoted initiatives to reduce inventory levels andcapital investments, as well as development investments(expenses), in anticipation of the lower limit of sales risks.
In order to permanently strengthen our business structurein the fiscal year 2021 and beyond, we will establish these
activities to strengthen our revenue base.

Toward permanent strengthening of business structure

CEM* Project
Promote emergency measures
based on the assumption of lower
limit of sales risk

2020 Second Half2021-

• New Business Development for the post-COVID-19 era.
• Fundamental review of business structure, including
fixed cost structure• Strengthen sales and marketing functions• Review of production and sales bases• Work style reform/optimization of personnel allocation• Management Base Reform• Curb inventory levels• Reduce capital investment• Reduce development investment (expenses)• Reduce fixed costs (including personnel costs)

To become established

Develop “management reforms
from manufacturing reforms” asa company-wide cross-sectional
activity• Total cost reform• Phase gate reform• Business process and IT reform

2020 First Half
Management
Base Reform

Strengthen businessstructure

T Project

2018-*CEM: COVID-19 Emergency Measures

32 JVCKENWOOD Integrated Report

Audio

Topic
Establishment of the Perspective Creation Research Laboratory:
A profitable laboratory
In order to adapt and embrace change, the R&D Department was newly
established as the Perspective Creation Research Laboratory to promote free
and open-minded activities that always focus on the future 10 years ahead.
The laboratory will conduct research on the key themes of solving social
issues, increasing incubation, and upgrading intellectual property and skills,
with the aim of becoming a profitable laboratory by creating new services.

Biologicalinfo.
UX / UI

Security

Vehicle information
Ensuring robustness
Tamper detection

Interference
type AI
High-precision data analysis
Automatic processing

5G / 6G

Ultra high speed
High capacity
Low latency

Human Center
Visibility
Notification & warning Tone

Certification
Mind and body safety
Social coexistence

Location
info.
Time
Space
Reconstruction

JVCKENWOOD Integrated Report 33

Strategies to Enhance Corporate Value over the Medium to Long Term

Personnel Measures, Corporate Culture Reforms,
and Work Style Reforms

Medium-Term Management Plan VISION 2023

JVCKENWOOD is promoting strategic personnel measures, corporate culture
reforms, and work style reforms to achieve one of its Management Principles“Investing in people to strengthen capabilities and push boundaries.”

Corporate culture reforms by revising the action guidelines

Reform of human resources management
The Medium-Term Management Plan VISION 2023 emphasizes the importance of strategic personnel measuresand corporate culture reforms by holding up “Building
a corporate culture that adapts and embraces change”
and “Investing in people to strengthen capabilities andpush boundaries” in its three Management Principles.
Based on this thinking, as strategic personnel measures,a human resources management (HRM) strategy will be
pursued toward a new normal era. Regarding recruitmentin the strategy, JVCKENWOOD will pursue an institutional
reform that realizes diverse work styles and contributes toself-realization. In personnel allocation, the organization
will be revitalized by rectifying the age distribution of
employees and having personnel rotation, and measuresfor enhancing productivity will be carried out on theassumption of a personnel decrease in the future. On theother hand, a system for developing personnel abilities
will be prepared to enable employees to demonstrate
their skills to the maximum with an eye on diversificationof career paths.

Optimization of human

Additionally, revisions will also be made to the personnel
system related to compensation, evaluation, etc. As apersonnel system necessary to realize diversity in humanresources, a system will be considered and adopted that
can accommodate various needs including highly specialized jobs, shorter work days and shorter work hours.
Based on trends in society, The Company will reorganizeand shift to a compensation system that reflects the roles
and achievements of its employees.

In line with Management Principles renewed along withthe formulation of the new Medium-Term Management
Plan VISION 2023 announced in May 2021, JVCKENWOOD
has set four values as new action guidelines (“4 Values”):“Change,” “Create,” “Earning power” and “Connect.” The
4 Values are what will become concrete rules and instructions for employees’ behavior to realize the Corporate Vision“Creating excitement and peace of mind for the people of
the world” and the Management Principles and are essential
for each employee to continue working in their workplaces,• Changes and new ideas• Transformation• Ability to cope with changes• Changes in work styles and lifestyles

and they will lead to the creation of a corporate culture.
The Company believes that employees will apply “Whatthey can do,” “Whom they aspire to be,” and “Values” tovarious key words that will be created from the four valuesof “Change,” “Create,” “Earning power” and “Connect.”
Then employees will be encouraged to think in their own
ways and act in their own ways, resulting in a corporate
culture being fostered, leading to “Change for Growth” as
the main theme in VISION 2023.

ChangeCreate• Growth and creation, innovation• Manufacturing reform• Development of human resources andhuman capital, corporate culture• Creating opportunities

Connect• Passing down the skills andtechniques of the artisans• IoT, 5G, MaaS, Connected• Sustainable growth (SDGs)• Transcending space, connecting time

4 Values

Corporate
VisionManagement
Principles

Personnel
planning

Engagement

Recruitment

Training andassignment

Remuneration

resources by utilizing Human
Resource Management (HRM)
Assessment

Organizational
development• Value creating power• Source of growth• Obsession with profit• Invisible hand - Adam Smith

Earning
powerWork style reforms
JVCKENWOOD will promote the realization of diverseand flexible work styles through the work style reforms.
Specifically, teleworking will be promoted by establishingan efficient teleworking environment while accelerating
digitization and shifting to electronic seals, with utilizationof satellite offices and adopting hot desking are under consideration. In addition, short work hours will be expanded

to full-time employees, a system for promoting second andconcurrent jobs will be introduced, a super flex system will
be adopted, and employees will be recruited on the condition that they are free from transfers that involve themmoving homes. The Company will also advance a healthmanagement initiative that supports the activities of each
employee.

Four approaches to workstyle reforms

Recruitment, personnel allocation andability development
Institutional reform that can realize diverse work styles
 evitalization of the organization by rectifying theR
age distribution of employees and having personnel
rotation, and implementing measures for enhancing productivity on the assumption of a personnel
decrease in the future.
 stablishment of a system for developing personnelEabilities to meet diversification of career paths.

34 JVCKENWOOD Integrated Report

Personnel system(compensation and evaluation)
 onsideration and implementation of a personnel sysC
tem reform necessary for realizing diversity*Consideration of treatment of highly skilled jobs, short work days, shortwork hours, etc.

 ebuilding a compensation structure that reflects rolesRand achievements

Promoting telework

Linkage with office strategies

 reating a more efficient telework environmentC• Support for improving IT skills• Labor management
Promoting digitization and electronic stamps
Eliminating single-employer assignments

Utilization of satellite offices• Work at the nearest office• Use of shared offices and rental offices
Free address system

Personnel system (measures to support the new system)

Promotion of health managementE xpansion of shorter days and shorter working hours tofull-time employees
System for second and concurrent jobs
Super flex time
Regional recruitment
Hiring of remote workers (e.g., people with disabilities)

S trengthening management education
Measures to improve health literacy• Visualization of current issues• Effective utilization of stress check results
Promoting collaborative health with health insurance associations

JVCKENWOOD Integrated Report 35

Foundation to Support Sustainable Growth

Sustainability Strategy

Process for identifying materiality

Towardsustainable growthBased on its corporate vision, the JVCKENWOOD
Group aims to continuously increase its corporate
value and contribute to society by working to solve
social issues through its business while building
deep relationships of trust with all stakeholders
involved in the Group.

Four steps to identify materiality
JVCKENWOOD has determined social issues strongly connected with its business on the basis of the Sustainable Development Goals(SDGs) and identified materiality set up Key Performance Indicators (KPIs) to manage the progress of our efforts to solve challenges.

Determine social issues

Formulate Key
Performance Indicators(KPIs) for VISION 2023

Identify materiality(linking SDGs and business)

Create social value

1

2

3

4

Determine social issues strongly
related to business based on SDGs,
and classify them as sustainability
strategy topics and sustainability
effort topics in accordance with
their relevance to the company’s
own businessSubdivide sustainability effort topics
and examine their connections withVISION 2023 to identify materiality

Formulate KPIs conforming to
VISION 2023 to manage progresson materiality, establish qualitativeand quantitative targets based on
KPIs

Pursue efforts to achieve mid- tolong-term targets, create social
value, and satisfy the expectationsof customers and other stakeholders

Materiality of the JVCKENWOOD GroupIn VISION 2023, we will further strengthen our efforts in sustainability

Ⅱ. Labor

Ⅴ. Economy

Ⅷ. Value
Creationmanagement, which focuses on both “profitable growth” and “solvingsocial issues on a global scale” as key themes. In promoting sustainability

Ⅰ. Society

III. Environment, IV. Quality, V. Economy, VI. Safety, VII. Governance, VIII.
Value Creation.
Diversity Continuity

Positioning and role of the Sustainability Management Office
JVCKENWOOD appointed a director in charge under the supervision of the Board of Directors
and established the Sustainability Management Office under its umbrella. The Sustainability
Management Office is responsible for implementing the company-wide sustainability
promotion strategy and managing its progress.
Board of Directors
ReportSupervision

Overseas regions

Sustainability Management OfficeBusiness Sectors

Administrative Divisions

Mobility & Telematics
Services Sector

Americas

EMEA*1

APAC*2

China

Management Base
Reform OfficeFinance Operation
Department

Procurement & Logistics
Department

Internal Governance Office

Accounting & Tax
Department

Information Technology
Department

Corporate Audit OfficeInstitute of Future Creation

Corporate Strategy
Department

Group Management
Department

Intellectual Property
Department

Corporate Communication
Department

Corporate Secretary Office

Legal Affairs Department

Human Resources
Department

Finance & Accounting
Reform Project

Engineering Innovation
Department

General Administration
Department*1: Europe, Middle East and Africa*2: Asia Pacific

36 JVCKENWOOD Integrated Report

solve the issues, while taking into consideration the connection withVISION 2023.

Public Service Sector

Ⅶ. Governance Ⅲ. Environment

IV. Quality
Sustainable manufacturing

VII. GovernanceInitiatives for risk management• Create value through mobility products and services• Identify and reduce the amount of plastic used• Conserve resources/energy in production processes• Corporate governance• Code of conduct for compliance• Product quality & safety

Media Service Sector

Others(DX Business)• Reduce greenhouse gas emissions (Scope 1, 2, 3)• Develop environmental management systems

In April 2018, the JVCKENWOOD
Group appointed a director in
charge under the supervisionof the Board of Directors andestablished the Sustainability
Management Office under its
umbrella in order to quickly andsteadily advance the sustainability
promotion strategy.

Ⅳ. Quality

I. Society
Prevent traffic accidents

III. Environment
Address climate change

Note

Ⅵ. Safety

Top Priority key issues• Promote active roles for women• Corporate culture and work style reforms

Information Disclosure Committee

Visibility Conformity

materiality and setting KPIs to manage the progress of our efforts to

II. Labor
Diversity & inclusion

Director in charge

Preventing tra
Value Creatio
Mobility & Te
Ⅱ. Labor
Diversity & inc● Promoting a● Corporate cu
Ⅲ. Environmen
Addressing cli● Reducing gree
● Developing en
Initiatives for dis● Value creatio
disaster-miti
Ⅳ.Quality
Sustainable m● Identifying and● Conserving r
production p●

management, we have identified eight social issues: I. Society, II. Labor,

For each of these eight social issue themes, we are identifying

Priority
Ⅰ.Society

V. Economy
Accelerate innovation• Create innovation through products and services• Manage/utilize intellectual property

VI. Safety
Secure and safe community development

VIII. Value Creation
Stakeholder partnership• Collaborate with stakeholders (government/business
partners/local communities)• Create value with security products & services

Initiatives for disaster prevention and mitigation

Ensure a safe and secure transportation system• Create value with disaster-prevention and disastermitigation products & services• Create value through telematics services

Key issues
I. Society
Expand access to medical care

II. Labor
Promote active roles for employees

III. Environment
Conserve water resources• Create value with healthcare products & services• Human resources development• Employee health management• Occupational safety and health• Fair labor-management relations• Manage water utilization

Access to suitable education• Create value by contributing to social issues of lowbirthrate and longevity

Supply chain management• Prohibit child labor• Prohibit forced labor• Pursue sustainable procurement• Respond to conflict minerals

Conserve natural environment• Preserve biodiversity

IV. Quality
Reduce environmental impact• Proper management of chemical substances• Reduce wastewater and waste

JVCKENWOOD Integrated Report 37

Foundation to Support Sustainable Growth

Sustainability Strategy

 revention of traffic accidentsPand global warming

Materiality for the realization of profitable growth and the solution of social issues

JVCKENWOOD’s car navigation systems are equipped with functions such as reverse driving
warning, which warns the driver in real time when driving in reverse, and stop sign display,which informs the driver of intersections with stop sign information. It is also equippedwith safety and security features such as a virtual room mirror that ensures a clear view of
the rear of the vehicle in conjunction with a dashcam, contributing to the prevention of
traffic accidents. In addition to easing traffic congestion through linkage with Intelligent
Transport System (ITS) via ETC2.0 on-board equipment, there is also a driving support
function that reduces unnecessary acceleration and deceleration by receiving information
on traffic congestion, weather, and disasters, and My Route Adjuster that allows the driverto freely set the route to the destination under various conditions such as toll priority,
road width priority, and signal consideration. These features enable eco-driving without
wasting fuel and reduce greenhouse gases emitted by the car.

The JVCKENWOOD Group has established indicators (KPIs) associated with each materiality and has been working onthem in order to understand the status of efforts toward materiality and to make further improvements. In FY 2021, we
will strive to further improve or maintain our performance based on the following KPIs.

No

Materiality

1

FY 2020

FY 2021

KPIs & Target

ResultKPIs & Target

Reduce greenhouse gas
emissions (Scope 1+2)•
G reenhouse gas emissions (Scope 1+2):
18,900t-CO2 (Emissions only, covering domestic
business sites/production sites)〇•
Reduce greenhouse gas emissions (Scope1+2): Reduce by 25.2% by FY 2025 comparedto FY 20192

Reduce greenhouse gas
emissions (Scope 3)• Greenhouse gas emissions (Scope 3): FY 2019
Improve accuracy of results disclosure〇•R educe greenhouse gas emissions (Scope 3):
Scope 3 Calculation and reduction for categories
1, 4, and 11

3

Manage water use• Number of violations of water quality laws
and regulations: Maintain 0〇• Manage water consumption: 6% reduction
from FY 2019 levels by FY 2025

Reduce wastewater and
waste

•
Amount of hazardous waste generated(control of 28 hazardous substances under
the Water Pollution Prevention Act): Less
than 0.1443t (for domestic business sites/
overseas production sites)〇• Improve waste recycling rate: 90% or morerecycling rate by FY 2025〇

• Reduce the amount of plastic used4

5

Identify and reduce theamount of plastic used•New environmentally friendly
Reduced 11.6t of plastic

6

Prohibiting forced laborand child labor• Formulation of human rights policy: Formulationof the JVCKENWOOD Group’s human rights
policy〇• Conducted human rights due diligence activities

7

Promoting active roles for
women• Ratio of women in executive positions: 5.0%
or more〇• Ratio of women in executive positions: 5.8%
or more8

Product quality & safety• Number of recalls and response costs: Maintain0 cases/0 yen〇•N umber of recalls and response costs: Maintain0 cases/0 yen

9Corporate governance• Evaluation of the effectiveness of the Boardof Directors: Conducted once a year〇

• Evaluation of the effectiveness of the Boardof Directors: Conducted once a year•Attendance rate at Board of Directors
meetings: 100%

10

Information security• IT security training participation rate (domestic):
90% or higher〇• IT security training attendance rate: 92% orhigher• Number of cyber security incidents: 2 or less11

Create value throughmobility products &services•Actively provide the market with driving
recorders equipped with new functions, suchas two cameras, from FY 2020〇

• Expansion of market share in the navigation
market• Market development of dashcams equippedwith new functions

12

Create value with disasterprevention and disaster•Plan to introduce new disaster prevention
mitigation products &and mitigation products and services: 40
services〇•Received one project order for disasterprevention solutions

13

Create value with security
products & services• Plan to introduce new security products andservices: 20〇• Solve customer issues through image analysis
and introduce products and systems that
address the risk of COVID-19 infection

14

Create value throughtelematics services•Plan to launch new telematics services: 5
projects (plus contribution to emerging
countries through orders for ODA projects)〇• Introduce telematics services• Market introduction of CABmee, a next-generation
IoT vehicle dispatch system

15

Accelerate innovation• Number of results of Innovation Act: 3 newbusiness initiatives through collaboration〇•D evelop new genre products• Introduce new edge AI cameras• Conducted patent idea meetings: 175 times/year〇• Conducted training to improve IP skills: 20
times/year△• The number of patent applications related
to SDGs 3 (Good health and well-being), 9(Industry, innovation and infrastructure), and 11(Sustainable cities and communities) will accountfor at least 10% of all patent applications.

16

17Manage/utilize intellectual
property

Collaborate withstakeholders

products:• Implemented a social implementation projectin collaboration with industry, government,
and academia: Planned to address social
issues caused by COVID-19

38 JVCKENWOOD Integrated Report〇• Succeed and construct a social implementation
platform inside and outside the university
to continuously create innovation throughindustry-government-academia collaboration

SDGs

Linking car navigation systems and peripheral devices to help prevent
traffic accidents and reduce greenhouse gas emissions

Contributing
Products

Car navigation system
Dashcam

Functions that contribute to theprevention of traffic accidents

Functions that contribute togreenhouse gas reduction“Reverse driving warning”“Stop sign display”“Zone 30 area display”“Virtual room mirror”“ETC2.0 linkage”“My Route Adjuster”

Contribution to SDGs through business activities
 esponse to disasterR
prevention and mitigation
Extreme weather events, which are assumed to be caused by
global warming and other factors, are becoming more frequent.
A communication system that enables rapid response to extreme
weather events related to climate change and other economic, social,and environmental impacts and disasters is essential. JVCKENWOOD
has developed a specific low-power transceiver that not only requires
no license, qualification, or application, and has no basic fees or callcharges, but also has an antibacterial and antiviral treatment*. In
addition to outdoor and business applications, the system is expected
to be used for rescue and relief in disaster-stricken areas, and webelieve it will contribute to reducing the number of deaths, missing
persons, and direct injuries in disasters.

Contributing
Products

Specific low-powertransceiver*Air catalyst SELFEEL® process. It is not effective against all bacteria and viruses.
Antiviral treatment is not intended to treat or prevent diseases.
SELFEEL® is a registered trademark of Nichirin Chemical Co., Ltd.

 reating a safe andCsecure community
As global urbanization progresses and the disparity between
the rich and the poor widens, the risk of crime occurring isincreasing, and there is a growing need for security systems toprevent and monitor crime in order to create a safe and securecity. JVCKENWOOD is developing security systems such as security
and surveillance cameras that utilize its strengths in audio, visualand communication technologies. In addition, the intelligent
video analysis system contributes to the improvement of safety inpublic transportation by detecting marooning, falling off station
platforms, and detecting human characteristics. Through thesesystems, we hope to deter crime and contribute to the creation ofa safe living environment.

Contributing
Products

Security system

JVCKENWOOD Integrated Report 39

Foundation to Support Sustainable Growth

Environment

Addressing climate change

Our approach to the environment
The JVCKENWOOD Group is implementing various energy-saving initiatives
set out under its Basic Environmental Policies. In 2019, we participated in the
Ministry of the Environment’s program designed to support companies thatuse internal carbon pricing and started efforts to raise in-house awarenessabout the environmental cost of carbon.

In conducting business activities, developing products and providing
services, the JVCKENWOOD Group continually strives to keep theenvironmental impact to a minimum. In place of the Eco Promotion Plan
2020, which we had promoted so far, we newly established the Policy for
Environmental Vision and the Basic Environmental Policies in FY 2021.

We have set a long-term global carbon reduction target, aiming to reduce
Scope 1 + Scope 2 CO2 emissions by 25.2% against FY 2019 emissions throughFY 2025 in order to achieve carbon neutrality by 2050. As the Scope 3 target,
we are also working to calculate CO2 emissions under Scope 3 on a global
basis and to reduce CO2 emissions associated with our business activities.

Policy for environmental vision
Through the creation of products and services based on advanced technologies and through environmental activities, the
JVCKENWOOD Group, together with all stakeholders, protects the global environment and contributes to the realizationof a healthy and sustainable society not only today but towards the future.

Basic environmental policies (JK Green 2025)
Based on the Policy for Environmental Vision, the JVCKENWOOD Group complies with environmental laws and regulations inall of its products and business activities, and contributes to the sustainable use of, and co-existence with, energy, resources
and the biosphere, which are the assets of the earth. To achieve this goal, we establish and implement goals focusing on
the following four important environmental items.

Addressing climate change• Scopes 1 + 2 Target: 25.2% reduction by FY 2025 from the FY 2019 level (total and global)• Scope 3 Target: Calculation of CO2 emissions under Scope 3 and reduction of CO2 emissions associatedwith business activities (global)

Reduction of emissions from the use of purchased, transported, and sold products• CO2 reduction through collaboration with business partners (upstream and downstream) for Scope 3
Categories 1, 4, and 11* (global)*Category 1: Emissions associated with raw materials, parts, and purchased products; Category 4: Emissions associated with transportationof raw materials and products; Category 11: Emissions associated with assumed electric power consumption for the use of products soldAchieve zero emissions (promotion of 3R management)

Improvement of thewaste recycling rate
• Achieve a recycling rate of atleast 90% by FY 2025 (global)

 eduction of the use ofRplastics•M onitor and reduce plastic
consumption

As part of our initiatives aimed at achieving this target, we have beenmonitoring power consumption at business centers, upgrading production/
air-conditioning equipment to high-efficiency models, introducing LED
lighting, and promoting environmental education among employees.
As a member of the Japan Electronics and Information Technology Industries
Association (JEITA), we have joined Keidanren (the Japan Business Federation)in its Commitment to a Low Carbon Society and have been working to not
only reduce total CO2 emissions but also improve energy intensity.

Introducing LED lighting

Organizational structure for addressing climate change

Achieve carbon neutrality by 2050

Reduction of CO2 emissions associated with business activities

Effective use of resources

Upgrading production/air-conditioning equipment
to high-efficiency models

 eduction of waterRutilization

The JVCKENWOOD Group recognizes that addressing climate change is one of the important issues in its sustainability
promotion strategy. We set up the Sustainability Management Office that is overseen by one of our corporate officers(a director since June 2021), who reports to the Board of Directors, in order to swiftly implement our Sustainability
Management Strategy, which addresses climate change among other things.
The Sustainability Management Office is responsible for coordinating the implementation of company-wide climatechange initiatives and progress management. It works with relevant departments to periodically review material issues
and key performance indicators (KPIs), study and collect information about the potential effects of climate change on ouroperations, and enhance the disclosure of sustainability-related information.
In addition, the Sustainability Management Office actively communicates with relevant departments and sections andtakes the lead in efforts to make sustainability part of our business operations, all with an eye to fostering awareness andunderstanding of climate change issues within the Group.

• 6% reduction by FY 2025 fromthe FY 2019 level (total, global)

Environmental conservation Proper management of environmental load chemical substancesand management
Proper management of chemical substances (toxic chemicals)• Define and manage environmental control substances based on in-house standards that have been judged
to have a significant impact (aspect) on the global environment and human body.

Preservation of biodiversity Conservation of ecosystems
 ctively promote activities to realize the Basic Environmental Policies at each stage
Aof the life cycle of our and the supply chain’s products and services, contribute to therealization of a sustainable society, and preserve biodiversity.

40 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 41

Foundation to Support Sustainable Growth

Environment
Environmental conservation and management

Approach to initiatives in reducing CO2 emissions
At the JVCKENWOOD Group, we are gathering relevant
information, including the Task Force on Climate-related
Financial Information Disclosure (TCFD) and science-basedtargets (SBT), and engaging in in-depth discussions on
setting targets in addressing climate change. We willcontinue to implement measures as necessary to ensure
the appropriate setting and management of targets as well
as disclosure of information.

Scopes 1, 2 of CO2 emissions (FY 2012-FY 2020)

Proper management of chemical substances
At the JVCKENWOOD Group, we recognize that we should ensure proper management of chemical substances containedin products in the processes of both procurement and business activities and comply with expanding regulations.
Therefore, we believe that it is particularly important to share information on chemical substances contained in productsin the supply chain. The JVCKENWOOD Group was involved from the beginning in the establishment and introduction of
chemSHERPA, an information-sharing scheme led by the Ministry of Economy, Trade and Industry, and has been making
active efforts to facilitate the sharing of information on chemical substances contained in products across the private sector.

Scopes 1 + 2
Total CO2 emissions from the entire JVCKENWOOD Group(Scopes 1 and 2) have been in a general downtrend overthe past six years. In FY 2020, our CO2 emissions fell to
39,904 tons, well below the target of 69,000 tons.

Scope 3
We calculate indirect CO2 emissions from various processesof corporate activities, from raw material procurement tomanufacturing, transportation, use and disposal. Actual
emissions are calculated based on the Basic Guidelines on
Accounting for Greenhouse Gas Emissions Throughout theSupply Chain published by the Ministry of the Environment
and the Ministry of Economy, Trade and Industry. Goingforward, we will continue working to cut CO2 emissions by
reducing the number of parts per product and developing
power-saving products.

Coverage: All Group companies in Japan and certain overseas companies

Scopes 1, 2 & 3 of CO2 emissions (FY 2019)

Preservation of biodiversity

FY2019650,548t

With the deterioration of the habitat environment of living creatures and the destruction of ecosystems becoming increasingly
serious concerns, more effective and rapid efforts to realize a world where people can live in co-existence with nature areneeded. The strengthening of frameworks for biodiversity preservation both inside and outside Japan, including the Aichi
Targets adopted by COP10 in 2010 and the Biodiversity National Strategy 2012-2020, has given companies an increasingly
significant role, and systematic efforts are required to ensure that business activities are considerate of biodiversity and topreserve biodiversity.
Against this backdrop, the JVCKENWOOD Group has identified preservation of biodiversity as one of the four importantenvironmental items in its Basic Environmental Policies. Based on these policies, we will actively promote activities aimed at
the realization of the Basic Environmental Policies at each stage of the life cycle of our and the supply chain’s products andservices, and contribute to the realization of a sustainable society and the preservation of biodiversity.

Coverage: All Group companies in Japan and certain overseas companies

Effective use of resources
Waste reduction
Aiming at a recycling rate of 90% by FY 2025 on a global basis, the JVCKENWOOD Group is actively engaged in waste
reduction, diligently disassembling and sorting waste generated in the production processes and reusing it within thecompany or turning it into valuables. As a result, the Group’s business in Japan has achieved a recycling rate of 99.7%.
Going forward, we will continue to further reduce waste generation and promote recycling to achieve zero emissions byexpanding efforts for 3R* management.
*Reduce, Reuse, and Recycle

Management of water utilization
Ascertaining water risks for corporate business activities and taking suitable countermeasures are growing in significance.
The JVCKENWOOD Group has been working to reduce its water usage, and, as a result, water intake at production bases
has been on a downtrend. As there is concern about global water shortage in the future, we are aiming to reduce water use
by 6% from the FY 2019 level by FY 2025. The JVCKENWOOD Group also continues endeavoring to ensure as far as possiblethat the water used and the wastewater generated in its business activities become reusable water resources.

42 JVCKENWOOD Integrated Report

In addition, it is responsible as a global corporation for minimizing the impact of chemical substances on people andecosystems by properly managing chemical substances. Therefore, by defining environmental management substances
based on the internal criteria, we work to monitor and control the use of toxic chemicals, look for alternative chemicals,
and review and improve the working environment. These efforts also involve our suppliers.

Development of environmentally friendly products
The JVCKENWOOD Group recognizes that it is responsible as amanufacturer for reducing environmental loads caused by the
production, sale, and use of its products. At present, we focus ourefforts on displaying the J-Moss green mark and reducing packaging
materials to more environmentally friendly materials.
JVCKENWOOD has changed the packaging of Gumy Wireless
HA-FX9BT headphones, launched in the Americas and Europe in May
2019, from blister packaging (made of plastics) to a paper box. While
our FY 2020 target aimed to reduce plastic use in this product by
11.6 tons via a shift to paper packaging, we were able to cut plastic
consumption by 11.9 tons due to an increase in shipment volumes.
This packaging change has enabled the company to reduce its annual
plastic consumption and mitigate environmental loads in Europe,
where plastic waste regulations have been recently tightened, and in
Canada, where single-use plastics will soon be banned.

Conventional model: blister packaging (made of plastics)

Current model: paper box

JVCKENWOOD Integrated Report 43

Foundation to Support Sustainable GrowthSociety
Our approach to society

target of increasing the ratio of female executives to 8.0% in FY 2025, as shown below. As a result of providing stratified
training for female staff and training for executives, the ratio of female executives rose from 2.1% in FY 2015 to 5.0% in
April 2021. We will continue striving to foster an organizational climate that respects diversity whereby we aim to create
innovation and contribute to a sustainable society through business activities.

In our social initiatives, we are committed to protecting the humaninclusion by implementing various measures. We also recognize productquality and safety, which are the most essential to a manufacturer, as
our issues to focus on, and are implementing various measures.

The logo depicts people with adiversity of values joining hands
and making way for the future asone. With the image of a fusionof differing races, genders, andvalues in mind, we designed thelogo using a broad range of colors,
including JVCKENWOOD’s corporate color of blue.

Human rights initiatives
The JVCKENWOOD Group respects the human rights of all stakeholders who are concerned with its business activities andsupply chain. The Guiding Principles on Business and Human Rights were issued by the United Nations Human Rights Council
in 2011 against a backdrop of growing concern over the impact of globalizing corporate operations on human rights. They
provide steps that a business should take to prevent or mitigate the negative impacts on human rights that could happen
within its business operations and supply chains. In addition, the Government of Japan launched Japan’s National Action
Plan (NAP) on Business and Human Rights (2020-2025) for promoting respect for human rights in the context of businessactivities in October 2020. To be in line with the principles and NAP, the Group established the JVCKENWOOD Group Human
Rights Policy to clearly express its commitment to respect human rights in its business operations. In accordance with theestablished policy, we will continue to promote activities to respect human rights within its business operations.

For the JVCKENWOOD Group Human Rights Policy, please see:https://www.jvckenwood.com/content/dam/pdf/210126_JVCKENWOOD_Group_Human_Rights_Policy_en.pdf

Ratio of female executives

Diversity logo mark（%）

Ratio of women in all executives

rights of our employees and stakeholders and promoting diversity andAchievement

9

7.2%

6

3

4.0%

4.6%

5.0%

5.8%

Plan

8.0%

6.5%

0
2019

2020

2021

2022

2023

2024

2025

Occupational safety and health, and productivity management
In order to realize the corporate vision of “Creating excitement and peace of mind for the people of the world,” theJVCKENWOOD Group published the JVCKENWOOD Health Policy Statement as a message from top management. We
thereby promote efforts to create a “workplace environment that enables all employees to stay healthy and motivatedto work” and works to create a safe and healthy workplace so that each and every employee can demonstrate their fullpotential. For safety, we hold Safety and Health Committee meetings and carry out Safety Patrol campaigns every month
to reduce work-related accidents. For health, we are working on mental health training for managers, health promotion
activities in collaboration with the Health Insurance Association, measures against working long hours and care of employees,
and enhanced regular health checkups and re-examinations, among others. The JVCKENWOOD Group has been recognized
as an enterprise under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition (Large
Enterprise Category) program for four consecutive years since 2018.

Product quality & safety
Promoting sustainability procurement
Basic policy on product quality and safety
The JVCKENWOOD Group recognizes that constructing a sustainable supply chain is the key for realizing not only company
growth but also a sustainable society. Based on this recognition, the Group established the JVCKENWOOD Group Procurement
Policy in October 2018 in pursuit of sustainable procurement via its comprehensive supply chain including suppliers. In
addition, the Group established the JVCKENWOOD CSR Procurement Guidelines in 2017 (revised in 2020) in compliancewith the code of conduct set out by the Japan Electronics and Information Technology Industries Association (JEITA). We aim
to contribute to the development of a sustainable society by promoting effective sustainability procurement through theimplementation of the guidelines. In March 2021, we sent a self-assessment questionnaire sheet (SAQ) to all of our suppliers,and over 90% of our major suppliers responded.

Diversity & inclusion
Our approach to diversity & inclusion
JVCKENWOOD recognizes the Promotion of Diversity & Inclusion as a key initiative. In order for us to make a further leap
forward, it is essential that all employees exercise their skills to the maximum in their respective positions. We believe thatthe organization will be revitalized and performance will be improved by realizing an organization that empowers employeeswith diverse backgrounds, including race, nationality, religion, culture, disability, work style, age, gender, sexual orientation,and gender identity, and enhancing the engagement of each and every employee. As part of these efforts, we have set a

44 JVCKENWOOD Integrated Report

The JVCKENWOOD Group has set out the quality policies, the Basic Policy on Product Safety, and the Basic Policy on Product
Security. Based on them, the Group has been working to improve product quality and safety across its supply chains, in all
activities from procurement to sales, and has also been active in after-sales customer support.

Initiatives to improve product quality and safety
The JVCKENWOOD Group has established a company-wide quality
management system based on its quality policies. We are making groupwide efforts that include resolving quality issues through collaboration
between business units and relevant departments as well as taking
expert approaches to product quality improvement at every step, fromdesign and procurement to manufacturing. We see people who engage
in product quality work as the key to improving quality. The Group has
established guidelines for employees about the quality-related knowledge
and skills they need depending on the type of job they do as well as theirexperience and position, and regularly provides education and training inline with those guidelines. We are also striving to reduce product safety
risks and promptly implement improvements in collaboration with theHead Office’s product safety management department and other relevant
in-house departments.

Group discussion during quality training

JVCKENWOOD Integrated Report 45

Foundation to Support Sustainable Growth

GovernanceCorporate Governance
JVCKENWOOD believes that one of its most important management issues is to increase thetransparency and efficiency of its management decision-making process and improve corporate
value by strengthening corporate governance. We make it a basic policy to enhance our corporate
governance through the establishment of a structure that calls for the separation of management fromthe execution of businesses, the appointment of External Directors and External Audit & Supervisory
Board Members, and the improvement of the function of checking by establishing an Internal Audit
Division, thereby strengthening the internal control system on a Group-wide basis.

5. Matters concerning executive officer system
The Board of Directors, in order to lead the Company’s initiatives in corporate reform and governance, is chaired by anExternal Director, holds discussions between External Directors as independent officers and Directors concurrently serving
as Executive Officers to make highly transparent decisions, and entrusts the business execution to Executive Officers. In
accordance with decisions made at meetings of the Board of Directors, the Chief Executive Officer (CEO), serving as the
Chairman, takes the lead in the Executive Officers Committee’s meetings. Each of the Executive Officers is in charge of thethree sectors (the Mobility & Telematics Services Sector, Public Service Sector, and Media Service Sector) and serves as a
General Executive of a division belonging to any of these sectors while being in charge of the DX (Digital Transformation)
Business Division, which continues growing in the other sector, and assumes responsibility for the overall operations of all
business in the four regions (the Americas, EMEA (Europe, Middle East, and Africa), APAC (Asia Pacific), and China) as COO
or representative, and thus their responsibilities are clarified in both businesses and regions. Furthermore, we introduced an
execution system under which each Executive Officer is appointed to the positions of CFO (Chief Financial Officer) or CTO(Chief Technology Officer) or is in charge of each corporate division to support the CEO, and performs their duties.

Actions to improve the effectiveness of the Board of Directors
Overview of the corporate governance system
1. Overview of evaluation on effectiveness1. Reasons for adopting an Executive Officer System with the organizational structure of a company
with an Audit & Supervisory Board as a corporate governance system
JVCKENWOOD believes that the most efficient way to embody its corporate governance principles of “separation ofmanagement from the execution of businesses,” “appointment of External Directors and External Audit & Supervisory
Board Members” and “improvement of the function of checking by establishing an Internal Audit Division” is to introduce
an executive officer system along with the organizational structure of a company with an Audit & Supervisory Board.
This would enable institutions within the Company to collaborate with each other. Therefore, we have established thefollowing management structure.

2. Matters concerning the Board of Directors
Since June 2016, JVCKENWOOD has appointed an Independent External Director independent from and neutral to the
management of the Company as the Chairman of the Board of Directors and established a place for active exchangeof opinions and discussions at meetings of the Board of Directors. As of June 25, 2021, Mr. IWATA Shinjiro, who serves
as an External Director of the Board, chairs the Board of Directors. The Chairman of the Board determines agendas fora meeting of the Board of Directors through prior consultation with the Chief Executive Officer (CEO), the Executive
Officer in charge of Administrative Division and any other relevant persons. In addition, the Chief Executive Officer (CEO)is responsible for convening meetings of the Board of Directors and preparing minutes of meetings of the Board of
Directors, etc. as the Representative Director of the Board.

3. Matters concerning the Audit & Supervisory Board
JVCKENWOOD adopts a company with an Audit & Supervisory Board framework as its organizational structure. Audit& Supervisory Board Members are responsible for the corporate audit function and their duties include attending Boardof Directors’ meetings and other important meetings, as well as holding Audit & Supervisory Board meetings, auditing
the execution of Directors’ duties, the business execution of the entire Group and corporate accounting. The Audit &Supervisory Board holds a meeting once a month, and any extra meetings as needed from time to time.

Upon evaluation on effectiveness of the Board of Directors carried out in January 2021, individual interviews with each
Director and Audit & Supervisory Board Member were conducted in addition to their self-evaluations in order to improve
the quality of the evaluation while ensuring consistency.
Persons subject to evaluation Directors and Audit & Supervisory Board Members
Evaluation method

Persons subject to evaluation draft their answers to the “Self-Evaluation Questionnaire” and are interviewed
individually by a third-party organization. The answers and contents of the interviews are compiled and analyzed by
the third-party organization.

Proposed evaluation items were created in light of the appropriate roles of the Board of Directors of the Company
and its functional enhancement. Then the questionnaire was prepared by narrowing down the evaluation items,
Content of the SelfEvaluation and Questionnaire with consideration given to the opinions of an outside expert, which is a third-party organization, and based on theanalysis and consideration of factors such as the internal and external environment surrounding the Company.

2. Results of evaluation on effectiveness and measures taken against issues
It is concluded that JVCKENWOOD as a whole has achieved a satisfactory level of effectiveness. The Directors and Audit &Supervisory Board Members, both internal and external, were well aware of issues of the Board of Directors, management
and other aspects of the Company from their respective perspectives. Judging from their evaluations and comments on
individual questions of the questionnaire, multiple Directors and Audit & Supervisory Board Members shared the sameawareness of issues. However, the trends of scores they gave were not necessarily identical. The Company has taken thefollowing measures against the issues found in the past.

Issues found upon evaluation on effectiveness of the Board of Directors
IssuesFiscal Year

Training for officers

46 JVCKENWOOD Integrated Report

Diversity

 eflect progress and degree of achievementRof the Medium-Term Management Plan andthe analysis of factors of failure to achieve
the Medium-Term Management Plan tomodification of the plan

• Commitment to diversity
needs to be improved

FY 2018(the 4th evaluation)• Lack of opportunities to train officers

FY 2019(the 5th evaluation)

Provide opportunities to train officers• L ack of deliberation time due to*Introduction of training programs
an environment that allows active*Distribution of training materials
discussion• A comprehensive and systematic training
Clarify issues and points to be discussed
structure needs to be established• Commitment to diversity
needs to be improved

FY 2020(the 6th evaluation)

 onduct classroom training twice withinCthe fiscal year
*On the Medium-Term Management Plan
*On the succession plan

• S ecure time for practical and in-depth
discussion• Identify topics to be discussed• Commitment to diversity
needs to be improved

Measures in and after
FY 2021• Discuss and select a training program
for the year at meetings of the Board of
Directors• Utilize off-site meetings• Elect female Directors•R eview and narrow down reporting methods • T rain successors withconsideration for diversity•R econsider how to hold a discussion in meetings• Disclose skills matrix• Provide information for discussion

4. Matters concerning the Nomination and Remuneration Advisory Committee
JVCKENWOOD established the Nomination and Remuneration Advisory Committee, for which all of its External Directors
serve as committee members, in December 2015, with the aim of strengthening the independence and objectivity of
the functions of the Board of Directors. In addition, in April 2019, the Company added the Chief Executive Officer(CEO) to committee members of the Nomination and Remuneration Advisory Committee in order to share accurateinternal information in a timely manner and to improve the effectiveness of the Nomination and Remuneration Advisory
Committee. The Nomination and Remuneration Advisory Committee has made proposals to the Board of Directors
regarding candidate representatives of the Company, and reviewed the appropriateness of corporate officer candidates
and corporate officer’s remuneration plans proposed by the representatives and others, and reported its opinions.
The Board of Directors has determined corporate officer candidates and corporate officer’s remuneration, taking into
consideration the opinions stated by the Nomination and Remuneration Advisory Committee.

Practical and in-depth discussion

JVCKENWOOD Integrated Report 47

Foundation to Support Sustainable GrowthFoundation to Support Sustainable Growth

Corporate Governance

Message from the External Director

Issues found upon evaluation on effectiveness of the Board of Directors
IssuesFiscal Year

Training of successors

FY 2018(the 4th evaluation)• T he Nomination and Remuneration
Advisory Committee functions
appropriately
Consider introduction of medium- andlong-term incentive remuneration•D egree of completion, analysis offactors of failure to complete theproject, and frequency of reporting
those factors need to be improved—

FY 2019(the 5th evaluation)• Establish a succession plan for Directors
and train prospective Directors
Establish and implement a set of plansfor evaluation, discovery, recruitment
and development of human resources

Conduct a PMI* report of investment
projects periodically—

FY 2020(the 6th evaluation)

Conduct interviews with management
officers and Executive Officers at theNomination and Remuneration Advisory
Committee and consider successors

Conduct a PMI report of investment
projects periodically

Measures in and after
FY 2021•R eport and share the status of activitiesof the Nomination and Remuneration
Advisory Committee periodically

Evaluation of investment projects

New issues

Conduct a report of investment projects
periodically—Identify topics to be discussed• P DCA cycle for a Medium-Term
Management Plan•R
 isk management•B usiness portfolio• IR/SR, etc.

Corporate officer’s remuneration
How to determine the amount of remuneration of Directors of the Company is specified in internal regulations set by the
Board of Directors upon obtaining the opinions of the Nomination and Remuneration Advisory Committee. In conjunction
with establishment of our Medium-Term Management Plan VISION 2023, JVCKENWOOD reviews its corporate officer’s
remuneration structure and clarifies a breakdown of the remuneration which consists of the following three tiers: fixed
remuneration, short-term incentive (“STI”*1) and medium- and long-term incentive (“LTI”*2).

Outline of the new corporate officer’s remuneration system
Remuneration Structure(1) Fixed remuneration and (2) STI are paid up to or less than the maximum amount of remuneration for Directors(432 million yen per year). (3) LTI is paid separately.

(1) Fixed remuneration• The amount of remuneration specified in internal regulations for each position (such as President, Deputy
President, Senior Managing Executive Officer and Managing Executive Officer) as well as job title (such as
authority of representation, Chairman of the Board of Directors, and the Nomination and Remuneration
Advisory Committee Member).
• Fixed remuneration is paid in cash monthly.

(2) Short-term incentive• S hort-term incentive is paid as a bonus in order to reflect the business performance of the then-current fiscal
year in the then-current fiscal year.
• T he base amount for calculation of the short-term incentive shall be a certain amount calculated based on theamount of monthly remuneration.
• In conjunction with the annual business performance (such as profit and capital efficiency indicators), theamount of short-term incentive is determined and paid in cash within the range from 0% (no payment) to200% (double the base amount for calculation) of the base amount for calculation.

(3) Medium- and long-term
incentive•A stock issuance trust system is adopted.
• Shares will be issued upon resignation of the officer.
• Shares (points) are granted stably by determining the number of points to be granted for each position and job title.
• Payment of the medium and long-term incentive is triggered by an increase in stock prices and points to be
granted will not increase based on business performance.

Remarks• LTI is not paid to External Directors and Directors not serving concurrently as Executive Officers.
• The ratio of fixed remuneration, STI and LTI will be determined by the Board of Directors within the range from“75:15:10” to “85:8:7.”*2: Abbreviation of Long-Term Incentive.

48 JVCKENWOOD Integrated Report

External Director of the Board,
Chairman of the Board (Former Chairman of theNomination and Remuneration Advisory Committee)

IWATA Shinjiro*Abbreviation of Post-Merger Integration*1: Abbreviation of Short-Term Incentive.

Operating the Board of Directors
with an open and positive atmosphere to support the achievementof the Medium-Term Management
Plan VISION 2023.

In June 2017, I was appointed as an External Director of theCompany. This was just at a time when there was an atmospherein the Company to change itself for growth, and in particular, theNomination and Remuneration Advisory Committee was alreadymaking contributions to the process for appointing the next candidates for leadership. I later became Chairman of the Nomination
and Remuneration Advisory Committee, and invited our President
to join the committee as a member. While always keeping practicalexecution in mind, I proceeded with various discussions to establish
systems as target ideals for the state of executive compensationand the procedures for appointing leadership candidates.

of its target state which has been given the highest level of attention is our business portfolio. We must create a portfolio that cansurvive for the next five to ten years, and from that standpoint it is
our intention for new business and adjacent business to make up
25% of the total, which we believe is a good way of establishing
our initial momentum. The Company creates outstanding products in the three business sectors we are involved in, with a huge
number of diligent, hard-working employees. If we can fully apply
our strengths and support its open atmosphere so that people
who work earnestly can produce positive output, we believe it willdefinitely be possible to realize our plan.

As an External Director, I also provided advice in various forms
to change its profit structure. One example of this was sharing
information on various standards from around the world
according to my own experience from a global point of view,
to offer suggestions on concepts for the optimal state of selling,
general and administrative expenses and development expenses
according to the nature and scale of business, such as whether
they are involved in selling goods or providing services. I also
introduced external experts, allowing “management reforms
through manufacturing reform” to proceed, and concepts andactivities such as “phase gate reform,” “total cost reform,” and“business processes and IT reform” to take root. The progress ofthese transformations has now taken on a different shape and isbeing carried over to the basic strategy of “Change for Growth”
in the Medium-Term Management Plan VISION 2023 which wasstarted from this fiscal year.

While working to achieve our current plan, an essential elementin building the future of the Company will be the promotion of
DX. We will need management personnel who understand thedata-driven business of DX, so while considering steps such as
recruiting External Directors who possess such skills, it will also benecessary to provide future opportunities for executive personnel
even within the company to obtain DX-related expertise andknowledge. We furthermore consider it important to promote
education on DX even to levels below management in order toactively utilize IT and AI in each business, while having employees
accumulate cross-business experience through personnel rotation
to train and develop the next management class.

When formulating this medium-term management plan, themembers of the Board of Directors, including External Directors
like myself, confirmed its general direction from an early stage
and offered our advice, but it is actually being brought into shapeby front-line members who are putting it into action at worksites with the CEO at its center. As a result, I believe we havesuccessfully created motivation for each employee in the field
to work on it with enthusiasm and the real feeling of “This is
my plan,” where each person considers it to be something theycreated by themselves. Since measures for the implementation ofplans begin from the day after they are created, I think this is also
important in the sense that it allows personnel to immediately
begin discussions toward its execution. Additionally, the element

We can say that after achieving the core operating income ratio
target of this medium-term management plan, we can first
become a normal company. We must go through the steps offirst becoming a normal company and then advancing to becomea super company. In that sense, I believe the next three years will
be a very important time for us.
In June 2021, I was transferred from the position of Chairmanof the Nomination and Remuneration Advisory Committee andappointed as Chairman of the Board of Directors. While constantly
keeping in mind the goal I believe to be most important, whichis the operation of the Board of Directors in an open and positive
atmosphere that encourages members to voice their opinions andhold thorough discussions, I intend to provide support in various
forms so that the Company can succeed at “Creating excitement
and peace of mind for the people of the world” through its
strategy of “Change for Growth.”

JVCKENWOOD Integrated Report 49

Foundation to Support Sustainable Growth

Directors of the Board, Audit & Supervisory Board Members,
and Executive Officers (As of Jul.1, 2021)
Directors of the Board

IWATA
Shinjiro

Audit & Supervisory Board Members

EGUCHI
Shoichiro

Title
External Director of the Board, Chairman of the Board, Nomination
and Remuneration Advisory Committee member

Title
Representative Director of the Board, President and CEO, Nomination
and Remuneration Advisory Committee member

CareerApr. 2009	Vice President and Executive Officer, CEO of Service& Global Business, Information & Telecommunication
Systems Group of Hitachi, Ltd.
Apr. 2013	Representative Executive Officer, Executive Vice President
and Executive Officer CIO and CISO of Hitachi Group
Jun. 2015	Chairman of the Board & Director of Hitachi Koki Co.,
Ltd. (Outside Director)
Jun. 2017	External Director of JVCKENWOOD Corporation

CareerSenior Vice President & Executive Officer of Kenwood
Jun. 2003	Corporation
Oct. 2005	
President and Director of Kenwood U.S.A. Corporation
May. 2014	Representative Director of the Board, Executive Officer,
Regional CEO (Europe)
Apr. 2018	Representative Director of the Board, President, COO
Representative Director of the Board, President, CEO
Apr. 2019	Concurrent Post
Outside Director of A.L.I. Technologies Inc.

MIYAMOTO
Masatoshi

Title
Representative Director of the Board, Senior Managing Executive
Officer, CFO
CareerHead of Finance Planning Office, Finance Department ofOct. 2002	
Kenwood Corporation
Jun. 2007	
Director and President, Kenwood Electronics Trading(Shanghai) Co., Ltd.
May. 2014	Senior Vice President & Executive Officer, Head of Car
Electronics Segment
Jun. 2017	Director of the Board, Managing Executive Officer, CFO
Apr. 2018	
Director of the Board, Senior Managing Executive
Officer, CFO

SONODA
YoshioTitle
Director of the Board, Managing Executive Officer, Chief Technology
Officer (CTO), In Charge of Prospective Creation Research Laboratory, In
Charge of Engineering Innovation Department, In Charge of Intellectual
Property Department, In Charge of Legal Affairs Department, In Chargeof Procurement & Logistics Department
CareerJan. 2006	General Manager of Element Technology Development,
Consumer Business Development Center of Kenwood
Corporation
Apr. 2017	General Executive of Automotive Engineering & Design
Division
Apr. 2018	
Executive Officer, General Executive, Automotive
Engineering & Design Division
Apr. 2019 Executive Officer, CTO, General Executive of Automotive
Engineering & Design Division, General Executive ofAutomotive Business Planning Division, In Charge ofR&D Department, In Charge of Intellectual Property
Department
Apr. 2020	
Director of the Board, Executive Officer, CTO, In Chargeof R&D Department, In Charge of Intellectual Property
Department, In Charge of Legal Affairs Department, In
Charge of Engineering Innovation Department, In Chargeof Procurement & Logistics Department

50 JVCKENWOOD Integrated ReportSUZUKI
Akira

Title
Director of the Board, Senior Managing Executive Officer, COO
Public Service Sector, General Manager of Management Base
Reform Office
CareerJun. 2013	Managing Executive Officer of IT, General Executive ofCommunications Division
Jul. 2016	Managing Executive Officer Deputy COO Americas(Public Service Sector)
Apr. 2019	Managing Executive Officer, COO Public Service Sector
Apr. 2020	Senior Managing Executive Officer, COO Public Service
Sector, General Manager of Management Base Reform
OfficeJun. 2020	
Director of the Board, Senior Managing Executive
Officer, COO Public Service Sector, General Manager ofManagement Base Reform Office

HAMASAKIYuji

NOMURA
Masao

Title
Representative Director of the Board, Senior Managing Executive Officer,
COO Mobility & Telematics Services Sector, In Charge of Information
Technology Department, In Charge of Business Reform
CareerJul. 1998	Director of the Board of Benelux N.V.(subsidiary ofSojitz Corporation)
May. 2014	General Executive of OEM Business, Car Electronics
Segment of JVCKENWOOD Corporation
Apr. 2017	
Executive Officer, General Executive of OEM Business
Division, Automotive Sector, Senior General Manager of
Option Business Unit
Jun. 2018	Director of the Board, Managing Executive Officer in
Charge of Automotive Sector General Executive ofAutomotive OEM Business Division, COO EMEA
Apr. 2019	
Director of the Board, Senior Managing Executive
Officer, COO Automotive Sector, General Executive ofAutomotive OEM Business Division, In Charge of DX
Business Division, In Charge of Information Technology
Department

IMAI Masaki

SAITO Katsumi

KURIHARA Katsumi

FUJIOKA Tetsuya

Title
Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

CareerApr. 2001 General Executive of President’s Office,Manager of Corporate Planning Section of
Kenwood Corporation / Jun. 2010 Director of theBoard, General Manager of Corporate Planning
Department, General Executive of Entertainment
Software Division of Victor Company of Japan,
Limited / Jul. 2012 Senior Vice President &Executive Officer, General Executive of Corporate
Planning & Production Strategy Planning Division,
General Executive of the Human Resources
Management Division / Apr. 2018 Director of
the Board, Executive Vice President, CSO, CAO,
General Manager of Internal Governance Office

CareerApr. 2010 Executive Officer and General Manager
of Agribio Department of Idemitsu Kosan Co.,Ltd/ Jun. 2013 Director of Idemitsu Kosan Co.,Ltd/ Mar. 2018 External Audit & Supervisory Board
Members of Showa Shell Sekiyu K.K. / Jun. 2020
External Audit & Supervisory Board Member of
JVCKENWOOD Corporation

CareerApr. 2010 Corporate Vice President of Ricoh
Company, Ltd / Apr. 2012 Corporate Senior Vice
President of Ricoh Company, Ltd. / Apr. 2015
General Manager of Manufacturing Quality
Assurance Center, Manufacturing Divisionof Ricoh Company, Ltd. / Jun. 2016 Audit &Supervisory Board Members of Ricoh Company,
Ltd. / Jun. 2020 External Audit & Supervisory
Board Member of JVCKENWOOD Corporation
Concurrent Post
Outside Director of NIPPON ANTENNA Co.,Ltd.

CareerJun. 2010 External Director of the Board of
NEC Capital Solutions Limited / Apr. 2013 Vice
President, General Manager, Corporate Finance
Division of NEC Corporation / Jun. 2014 Audit& Supervisory of NEC Corporation, Auditor of
The NEC C&C Foundation, Auditor of Council
on Competitiveness Nippon, Vice Chairman of
Public Interest Incorporated Association Shiba
Houjinkai / Jun. 2018 NEC Capital Solutions
Limited (Commissioned Executive Consultant) /Jun. 2021 External Audit & Supervisory Board
Member of JVCKENWOOD Corporation

Concurrent Post
External Director of the Board of CHUCHIKU

Executive Officers

KURIHARA
Naokazu

Title
Director of the Board, Managing Executive Officer, Head of Administrative
Division (Human Resources Department, General Administration
Department, Secretary Office, Sustainability Management Office), COO
EMEA
CareerOct. 2002 President of JVC Company of America
Jun. 2010	
Director of the Board, General Executive of Digital
Imaging Business Division of Victor Company of Japan,
Limited
Sep. 2013	
Director of the Board, Senior Managing Executive
Officer, Assistant to CRO, Administrative Manager,
Senior Manager of Imaging Business Division
Apr. 2017	Managing Executive Officer, COO Americas
Managing Executive Officer, Head of Administrative Division
Apr. 2020	(Human Resources Department, General Administration
Department, Secretary Office, Sustainability Management
Office), COO EMEA

TAKADA Shinichi

TERADA Akihiko

HAYASHI Kazuyoshi

MURAOKA Osamu

Title
Managing Executive Officer, Assistant to
Head of Administrative Division (Corporate
Communication Department), General Manager
of Corporate Strategy Department

Title
Executive Officer, COO China

Title
Executive Officer, Assistant to COO Mobility& Telematics Services Sector, In Charge of DX(Digital Transformation) Business Development
Department

Title
Executive Officer, COO Americas, COO APAC
(Asia Pacific), In Charge of Overseas Business
Expansion

CareerApr. 2006 President and Director of JVC Mobile
Company of America / Jun. 2013 Operating
Officer, General Executive of Car Electronics
Consumer Division / Apr. 2017 Executive Officer,
COO Asia Oceania

CareerJun. 1997 Director of the Board, Administrative
Manager, Accounting Manager of Nippon
Computer Systems Corp. / Jun. 2001 Directorof the Board, Financial Controller, Shinwa Co.,
Ltd. / Jan. 2011 CED of Shinwa International
Holdings Ltd. (Current JVCKENWOOD Hong
Kong Holdings Ltd.)

Career
Dec. 2004 General Manager of Camcorder
Category, AV&Multimedia Company of Victor
Company of Japan, Limited / Oct. 2011 Chief
Engineer of HM Business Group / Apr. 2018
Executive Officer in charge of Media Service
Sector

CareerJun. 2012 Operating Officer, Professional Systems
Business Group, General Executive of Business
Solution Division / Apr. 2016 Vice President,
General Executive of Healthcare Business Division/ Apr. 2018 Senior Vice President, General
Executive of Communications Systems Division

ONITSUKA
Hiromi

Title
External Director of the Board, Chairman of Nomination andRemuneration Advisory Committee

Title
External Director of the Board, Nomination and Remuneration
Advisory Committee member

Executive Officer, Deputy Vice President, Infocommunications
Jun. 2004	Business Unit of Sumitomo Electric Industries, Ltd.
Jun. 2006	Managing Director, Vice President, Broadband Solutions
Business Unit of Sumitomo Electric Industries, Ltd.
Jun. 2010	
Director & Senior Managing Executive Officer of
MEIDENSHA CORPORATION
Jun. 2013	R epresentative Director, President of MEIDENSHACORPORATION
Jun. 2018	R epresentative Director, Chairman of MEIDENSHACORPORATION
Jun. 2019	External Director of JVCKENWOOD Corporation

CareerApr. 2005	General Manager, Clinical Laboratory Systems Divisionof Toshiba Medical Systems Corporation
Jun. 2009	Vice President, Chief Marketing Executive and General
Manager, Clinical Laboratory Systems Division, Toshiba
Medical Systems Corporation
Jun. 2012	
Full-time Audit and Supervisory Board Member ofYahoo Japan Corporation (Independent Auditor)
Jun. 2015	
Outside Director, Full-time Audit and Supervisory
Committee Member of Yahoo Japan Corporation
Jun. 2021 External Director of JVCKENWOOD Corporation

Concurrent Post
Director, Chairman of MEIDENSHA CORPORATION, Chairman of
the Japan Electrical Manufacturers’ Association

Concurrent Post
Audit & Supervisory Board Member of eBook Initiative Japan
Co.,Ltd., Audit & Supervisory Board Member of Yahoo Japan
Corporation, Outside Director (Independent Director) of the Boardof Tokyo Electron Device Limited

SEKIYA Naoki

IWASAKI Hatsuhiko

SATO Katsuya

Title
Executive Officer, General Executive of Aftermarket
Business Division, Mobility & Telematics Services
Sector, General Executive of Domestic Business
Marketing Division

Title
Executive Officer, COO Media Service Sector,
General Executive of Media Business Division,Media Service Sector

Title
Executive Officer, General Executive of communications systems Division, Public Service Sector

CareerApr. 2017 General Manager of Domestic Sales &Marketing Department, Automotive Aftermarket
Business Division / Apr. 2019 Senior Vice
President, General Manager of Domestic Sales &Marketing Department, Automotive Aftermarket
Business Division / Jun. 2020 Executive Officer,
General Executive of Automotive Aftermarket
Business Division, In charge of domestic sales
reformCareerJun. 2013 General Manager Engineering Operation,
Audio Division / Apr. 2018 General Manager ofLifestyle Business Unit, Media Business Division /Apr. 2020 General Executive of Media Business
Division, Media Service Sector

CareerApr. 2016 General Manager of P25 Strategy
Development Center, Communications Systems
Division / Jul. 2018 Senior General Manager ofEngineering & Design Division Communications
Systems Division / Apr. 2020 General Executiveof communications systems Division, PublicService Sector

For more information, please visit our website athttps://www.jvckenwood.com/en/corporate/management.html
JVCKENWOOD Integrated Report 51

Foundation to Support Sustainable GrowthFoundation to Support Sustainable GrowthCompliance

Risk Management

Basic concept and promotion system

Basic concept and initiatives

The JVCKENWOOD Group understands that compliance requires companies to go beyond adherence to laws and regulations
and to also address issues of great public concern stemming from rapid changes that have yet to be dealt with in legislation.
Accordingly, we have established “Complying with laws and regulations and engaging in sincere and responsible behavior”
as one of our conduct guides, and the Compliance Committee headed by the Chief Executive Officer (CEO) and the Internal
Governance Office are leading company-wide efforts aimed at ensuring full compliance in keeping with the JVCKENWOOD
Group Compliance Code of Conduct.

The JVCKENWOOD Group regards risks as factors that could inhibit the achievement of business plans. All business sitesof the Group around the world implement measures to recognize risks clearly. Specifically, we at the Group regularly
identify risks faced by those business sites in the course of our day-to-day corporate activities, set issues to tackle toprevent the identified risks from materializing and minimize their impact or damage, and, through collaboration between
those business sites and the management, resolve those issues systematically. Particularly, the management takes theinitiative in addressing risks that are likely to affect the Group entirely.

We also place importance on ensuring transparency of our corporate activities, and will continue to disclose information,
including donations to specific political parties and organizations (political donations made in FY 2020: 0 yen).

While we will continue to commit to global risk management actively, we recognize risks as opportunities to ensurecorporate sustainable growth and enhance our corporate value.

Specific initiatives to promote compliance

1. Risk management system of the Group

Compliance code of conduct
The JVCKENWOOD Group Compliance Code of Conduct (established in March 2010) has been promulgated among all executives
and employees within the Group through pamphlets (available in three languages) and an intranet site. Employees at affiliatecompanies under the Group’s purview are being familiarized with Standards by Compliance Officers selected by the Board of Directors.
Compliance training
Education on compliance is principally the responsibility of the Internal Governance Office, which endeavors under the
CEO’s guidance to thoroughly inform all executives and employees, including those of 41 group companies in Japan andoverseas, about compliance matters in order to construct a robust compliance structure. New employees are provided
with training in face-to-face sessions while other employees are provided with regular training through e-learning on
the intranet. Compliance Officers conduct annual training for division heads under their direct supervision and otherexecutives. The training is on the topics covered by the Compliance Code of Conduct and other related regulations aswell as on the prohibition against facilitation payments and bribery of foreign officials, prevention of corruption, such as
giving or accepting excessive gifts, corporate scandals and the whistle-blowing system. In the event of any violation of
the Compliance Code of Conduct, any corruption, or any other violation of corporate ethics, measures are required to betaken to prevent recurrence of similar incidents promptly. In FY 2020, there was no internal violation.
Anti-corruption initiatives
The JVCKENWOOD Group clearly states in the JVCKENWOOD Group Compliance Code of Conduct and its internal rulesthat it prohibits all forms of bribery and corruption and that no illegal or inappropriate means shall be employed that may
be used to influence the actions of others. The Group complies with anti-corruption laws and regulations and prohibits
bribery and inappropriate benefits such as gifts and entertainment that are contrary to laws, regulations, and social
conventions. The Compliance Committee looks into major incidents of noncompliance, such as bribery and corruption,and discusses measures to prevent their recurrence. All incidents of misconduct, including bribery and corruption, arereported to the Board of Directors. There was no legal action taken against us in relation to corruption in FY 2020.
Internal whistle-blowing system
The JVCKENWOOD Group has two whistle-blowing systems—the Whistle-blowing System (Helpline) and the Auditing
Informer System—available in Japanese and English to all executives and employees (including contract employees).
Employees having concerns about corporate ethics or compliance can directly report such concerns through the WhistleBlowing System (Helpline) established within the Internal Governance Office in line with “Regulation for JVCKENWOOD
Group Whistle-Blowing System,” and corrective measures will be taken at the direction of the Compliance Committee. Whenaccounting or auditing concerns arise, employees may use the Auditing Informer System set up at the Audit & Supervisory
Board Office to directly report them. A dedicated communications system has been organized and operated for both systems
to keep the notifier’s name and the reported contents confidential. The system is run by selected personnel. We will continue
using both systems to detect at an early stage and rectify compliance violations (behaviors that deviate from social norms).
Compliance awareness survey
The JVCKENWOOD Group has been implementing a compliance awareness survey on employees in group companies
in Japan once a year since 2017, in order to confirm the degree to which compliance awareness has taken root within
the Group. The fourth survey held in 2020, answered by 3,057 employees, shows that compliance awareness has been
increased since the beginning of this survey.

52 JVCKENWOOD Integrated Report

The Group has established a system to identify any and all risks related to its corporate activities accurately, to minimize theirimpact and damage, and to convert those risks into opportunities. An officer has been appointed to manage and promoterisk management from a company-wide perspective. In the system, the Risk Management Division plays a role as thesecretariat, and each business site actively and regularly identifies risks that are likely to be faced by itself and takes measures,
including prior understanding of those risks and prompt responses to materialization of those risks, under the initiative ofmanagers of each business sector, group company, and Administrative Division based on our risk management process.

2. Risk management process of the Group• At the Enterprise Risk Management Conference, which is organized by the Chief Executive Officer (CEO) and attended
by division heads at our Head Office, the Risk Management Officer and company executives in charge of their respective
business divisions, risks are identified, analyzed and assessed.
• Based on the results of risk analysis and assessment at the Enterprise Risk Management Conference, with consideration
for the management environment of the Group and situation at other companies, risks that will affect the Group
entirely and that need to be addressed on a company-wide basis are selected as “global important risks to be addressedwith the highest priority” and an annual plan to resolve those risks is established and managed.
• At each business site, including overseas sites, risk surveillance that covers all divisions of the Group is conducted every
year. Important risks selected by each business division and region are considered as “Business Site Risks.” Through acycle consisting of assessment, monitoring and improvement with consideration given to the implementation status ofcountermeasures and frequency of occurrence, the latest risks are shared and recognized anew within the Group andfeedback is provided to help us achieve the business goals of each consolidated fiscal year.

Awards & Recognitions
The JVCKENWOOD Group’s sustainability activities have been highly evaluated outside the company.
Major Awards & Recognitions
Selected as a constituent of the ESG Index“FTSE Blossom Japan Index”

Received the Donor Recruitment Award of the Emperor
Showa Memorial Fund for Blood Programme from theJapanese Red Cross Society

Selected as an enterprise under the 2021 Certified Health& Productivity Management Outstanding Organizations
Recognition (Large Enterprise Category) program*
FTSE Russell (registered trademark of FTSE International
Limited and Frank Russell Company) hereby certifies that
JVCKENWOOD has been found to fulfill, as a result of athird-party survey, the requirements for inclusion in the FTSE
Blossom Japan Index and has become a constituent of theindex concerned. FTSE Blossom Japan Index was created
and designed by FTSE Russell, a global index provider, tomeasure the performance of Japanese companies demonstrating outstanding performance in environment, socialand governance (ESG). FTSE Blossom Japan Index is widelyused to create and assess sustainable investment funds andother financial products.

Obtained the highest rank of “Eruboshi” certification
under the Act on the Promotion of Female Participation
and Career Advancement in the Workplace

Received the highest ranking “Gold” in the PRIDE
Index, an evaluation index for initiatives related toLGBT and other sexual minorities

JVCKENWOOD Integrated Report 53

Other Data

Company History
JVCKENWOOD will continue to create products and solutions that provide “excitement” and“peace of mind” based on its strengths in the audio, visual, communications and design management fields which the Group has cultivated over 100 years of history.

Company History

Product History

Before management integration

Before management integration

Victor Company of Japan, Limited (JVC)

1927	Established Victor Talking Machine Company of Japan,
Limited2013	Took over all of the shares of TOTOKU Nagaoka Corporation
through an absorption-type corporate split from TOTOKUElectric Co., Ltd., and changed the corporate name fromTOTOKU Nagaoka to JVCKENWOOD Nagaoka Corporation

1972	Established Victor Musical Industries, Inc.
(current JVCKENWOOD Victor Entertainment Corp.)

Kenwood Corporation (KENWOOD)

1946 Established Kasuga Radio Co., Ltd.
1986 Renamed Kenwood Corporation2014	Acquired all the shares issued by EF Johnson Technologies,
Inc., a company focused on delivering mission-critical, digital P25 communications solutions to the North American
market2015	Converted ASK Industries S.p.A., a European in-vehicle
component company, into a consolidated subsidiary

Victor Company of Japan, Limited (JVC)

1939 Produced the first TV receiver in Japan
1958	Launched the STL-1S, the first stereo LP and stereo set in Japan

Corporation, aiming to expand the Professional Systems
Business

JVCKENWOOD Corporation

The first-generation of dashcam

1986	Launched the GR-C7, the world’s smallest and lightest

The combination of JVC and KENWOOD’s invehicle technologies and visual and optical technologies have realized high functionality, high reliability, and high-quality recording. Currently enhancing
our product lineup to include two-camera types
and 360-degree shooting models.

VHS-C video camera

1995	Launched the GR-DV1, the world’s first pocket-sized
digital camcorder

Kenwood Corporation (KENWOOD)

2008	JVC and Kenwood established the joint holding company JVC KENWOOD Holdings, Inc. through a stocktransfer (JVCKENWOOD’s shares were listed on the First
Section of the Tokyo Stock Exchange)

Activity S.r.l., a developer and seller of digital radio relay
systems that are compliant with Digital Mobile Radio(DMR), an international digital radio standard

2018	Concluded agreement for a share acquisition and a capManagement integration of Victor Company ofJapan, Limited and Kenwood Corporation
JVC and KENWOOD merged in October 2008 with the aimof quickly maximizing the car electronics business (currently
the Mobility & Telematics Services Sector), which was thelargest common business between the two companies andwhere the greatest synergy effects were expected.

as a Japanese manufacturer

1978 Entered the professional radio equipment field in Japan
1980	Entered the car audio field in the U.S. and launched theKENWOOD brand’s car audio system in Japan2018	
Acquired all the shares issued by Italy-based Radio

ital and business alliance with Tait International Ltd., aprofessional radio communication systems company in
New Zealand2021	Formulated the New Medium-Term Management Plan
VISION 2023 with fiscal 2021 as the starting year

ChangeGrowthenables high resolution and clear recording pixels andentered into the dashcam market

1976 Launched the HR-3300, the first VHS recorder1957	Began exporting the FM-100 FM tuner for the first time2016	Established JVCKENWOOD Public & Industrial Systems

2014	Launched the KNA-DR300, a full HD dashcam that

1992	Entered the car navigation system field, launching the KNV100, the industry’s first 1DIN-size GPS car navigation system

JVCKENWOOD Corporation2011 Launched the MDV-727DT and MDV-626DT, first-generation
Saisoku-Navi devices that achieved high resolution and highspeed response
The first generation of Saisoku-NaviUsing visual technology, image compression technology, and other technologies cultivated over the years,
JVCKENWOOD achieved beautiful,
high-definition map rendering andcomfortable operability with high-speed response. This
concept has been carried over to the present day.

2016	Launched the WOOD series of inner-ear headphone,which feature wooden dome diaphragms

2017 Announced the development of EXOFIELD, an out-ofhead localization sound field processing technology
which enables reproduction and localization of the soundfield of speakers in a listening room with headphones

2019	JVCKENWOOD’s communication-type dashcams adopted
by Mitsui Sumitomo Insurance and Aioi Nissay Dowa
Insurance for the automotive insurance with dashcam
Telematics solutions for automotive insurance
In addition to the communication
function via LTE line (4G), the system
is equipped with driving support
functions to help drivers drive safely.
Plans to expand the business in the
future through the creation of adata service business by utilizing
communication-type dashcams.

2011	Completed an absorption-type merger of its three subsidiaries: Victor Company of Japan, Limited, Kenwood
Corporation, and J&K Car Electronics Corporation2013	Converted Shinwa International Holdings Limited (current JVCKENWOOD Hong Kong Holdings Ltd.), an in-car
device manufacturing company in Hong Kong, into a
consolidated subsidiary

54 JVCKENWOOD Integrated Report2013 Launched the DLA-VS4800, the world’s first mass-production

Sustainability management/
Evolution of ESG

2019	Commercialized a security service for drivers that uses

model of the professional-use D-ILA projector, which features
an 8K high-definition display

dashcams with communication capabilities for Grab,
Southeast Asia’s top car-hailing service

2014	Launched the NX-5000 series, the NEXEDGE series of2020	Provided JVCKENWOOD’s dashcam with communica-

multi-mode digital radio systems compliant with boththe NXDN™ and P25 standards

tion capabilities to F-dora, a telematics insurance service
for fleet contracts by Mitsui Sumitomo Insurance

JVCKENWOOD Integrated Report 55

Other Data

Other Data

Facilities (Japan) (As of July 1, 2021)

Facilities (Overseas) (As of July 1, 2021)

Business Centers and R&D Facilities
Names

Locations

Manufacturing Companies

Main R&D

Names

Locations

Main Products

Malaysia

Communications equipment

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Mobility & telematics equipment, projectors, video cameras, audio equipment, and medical
equipment, etc.

JVCKENWOOD Electronics Malaysia Sdn. Bhd.
JVCKENWOOD Electronics (Thailand) Co., Ltd.

ThailandMedia equipment and professional products

Hachioji Business Center

Hachioji, Tokyo

Mobility & telematics equipment

JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.

Thailand

Mobility & telematics equipment

Indonesia

Mobility & telematics equipment

Hakusan Business Center

Yokohama, Kanagawa

Radio communication devices, video surveillance equipment, etc.

PT. JVC Electronics Indonesia

Kurihama Business Center

Yokosuka, Kanagawa

D-ILA devices, laser diodes, etc.

Shanghai Kenwood Electronics Co., Ltd.

China

Mobility & telematics equipment

Beijing JVCKENWOOD AV Equipment Co., Ltd.

China

Professional radio systems

Major Production Bases and Production Companies

Sales & Marketing Companies: Americas

Sales & Marketing Companies: EMEA (Europe, Middle East and Africa)

Names

Locations

Main Products

Names

Locations

Names

Locations

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Optical components

JVCKENWOOD USA Corporation

U.S.A.

JVCKENWOOD U.K. Limited

U.K.

Kurihama Business Center

Yokosuka, Kanagawa

Optical components and projectors

JVCKENWOOD Canada Inc.

CanadaJVCKENWOOD Deutschland GmbHGermany

CD and DVD discs (prerecorded)

JVCKENWOOD Latin America, S.A.

PanamaJVCKENWOOD Europe B.V.

Netherlands

JVCKENWOOD Italia S.p.A.

Italy

JVCKENWOOD RUS Limited Liability Company

RussiaJVCKENWOOD Gulf Fze

U.A.E.

Yokosuka Business Center

Yokosuka, Kanagawa

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Communications equipment and professional products

JVCKENWOOD Nagano Corporation

Ina, Nagano

Mobility & telematics equipment

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

Medical equipment, medical image display monitors and in-vehicle substrates

Sales & Marketing Companies: APAC (Asia Pacific)
Major Affiliated Companies
Names

Sales & Marketing Companies: China

Names

Locations

Names

Locations

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVCKENWOOD (China) Investment Co., Ltd.

China

Locations

Main Operations

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

JVCKENWOOD Hong Kong Ltd.

China

Yokosuka, Kanagawa

Development, manufacture and sales of recorded optical disks, and manufacture andsales of medical machinery and appliances

JVCKENWOOD (Thailand) Co., Ltd.

Thailand

JVCKENWOOD Trading (Shanghai) Co., Ltd.

China

JVCKENWOOD Victor Entertainment
Corporation

Shibuya-ku, Tokyo

Planning, production and sales of audio and video software, live concert business,game business, studio business, etc.

PT. JVCKENWOOD Indonesia

Indonesia
Australia

Shibuya-ku, Tokyo

Production, editing, localizing and sales of audio and video products, studio operation,and event planning and operation

JVCKENWOOD Australia Pty. Ltd.

JVCKENWOOD Video Tech Corporation
JVCKENWOOD Public & Industrial Systems
Corporation

Yokohama, Kanagawa

Development, manufacture, sales, installation, construction and maintenance ofprofessional imaging, audio and communications equipment and system solutions

Names

Locations

Main Operations

JVCKENWOOD Service Corporation

Yokosuka, Kanagawa

After-sales services of audio and imaging equipment

EF Johnson Technologies, Inc.

U.S.A.

Development, manufacture and sales of professional radio systems

JVCKENWOOD Partners Corporation

Yokohama, Kanagawa

Undertaking of welfare program, general, personnel, accounting and other affairs,
sales of goods, tour business, and building construction and contract

ASK Industries S.p.A.

Italy

Development, manufacture, and sales of mobility & telematics equipment

Radio Activity S.r.l.

Italy

Development and sales of professional radio systems

JVCKENWOOD Engineering Corporation

Yokohama, Kanagawa

Development and design of software and hardware

Rein Medical GmbHGermany

Development, sales and implementation of operating room imaging solutions

JVCKENWOOD Design Corporation

Setagaya-ku, Tokyo

Planning and production of designs
JVCKENWOOD Hong Kong Holdings Limited

Hong Kong, China

Manufacture and sales of mobility & telematics equipment
Contract manufacturing service of electronics devices

JVCKENWOOD Technologies Singapore Pte. Ltd.

Singapore

Design and evaluation of mobility & telematics equipment and communications equipment

JVCKENWOOD Creative Media Corporation

Head Office &Yokohama Business Center

56 JVCKENWOOD Integrated Report

Major Affiliated Companies

Hachioji Business Center

Hakusan Business Center

Kurihama Business Center

JVCKENWOOD Victor Entertainment
Corporation (Victor Studio)

JVCKENWOOD Electronics
Malaysia Sdn. Bhd.

JVCKENWOOD Optical Electronics(Thailand) Co., Ltd.

PT. JVC Electronics Indonesia

JVCKENWOOD Yamagata Corporation

JVCKENWOOD Nagano Corporation

JVCKENWOOD Nagaoka Corporation

JVCKENWOOD Design Corporation

Shanghai Kenwood Electronics Co., Ltd.

EF Johnson Technologies, Inc.

ASK Industries S.p.A.

JVCKENWOOD Integrated Report 57

Other Data

Financial and Non-Financial Data
(Millions yen)

FYE 3/2012
JGAAP

FYE 3/2013
JGAAP

FYE 3/2014
JGAAP

FYE 3/2015
JGAAP

FYE 3/2016
JGAAP

FYE 3/2017
IFRS*1FYE 3/2019
IFRS

FYE 3/2018
IFRS

FYE 3/2020
IFRS

FYE 3/2021
IFRS

Fiscal year
306,580

316,343

285,010292,195

297,890

300,687

307,627

291,304

273,609

Revenue

320,868

Operating profit (loss)

13,105

9,761

4,592

6,757

4,494

-128

6,937

7,263

4,080

4,893

Profit (Loss) before tax

6,331

1,524

6,418

6,816

4,148

-1,259

5,940

6,401

2,877

4,533

Profit (loss) attributable to owners of
the parent company

6,213

1,243

-6,450

4,795

3,401

-3,114

2,389

3,847

954

2,154

Capital investment (Tangible fixed assets only)

5,600

7,082

4,243

5,385

9,267

9,069

8,287

8,700

11,837

10,269Depreciation expense

11,356

10,441

10,986

10,465

11,631

15,417

16,862

17,79420,20019,316

Research and development expenses

20,63021,35021,454

21,591

20,713

19,282

17,89018,30917,445

15,720Cash flows from operating activities

8,883

9,771

14,943

8,575

12,258

19,624

18,37920,98321,64235,829Cash flows from investing activities-6,498-13,356-10,658-3,857-8,395-17,690-14,835-25,768-19,675-11,804

Cash flows from financing activities-1,522-8,608-9,581-7,514-14,967-2,052-7,043

8,479-1,665-5,342

Free cash flows

2,385-3,585

4,285

4,718

3,863

1,934

3,544

-4,785

1,967

24,205Equity attributable to owners of the parent company

55,61765,894

52,12472,321

52,32439,551

50,63462,00956,48564,645

Total assets

241,650

246,735

267,380

279,041

256,334

241,696

239,933

250,617249,660

264,326

Cash and cash equivalents at end of year

65,47857,52654,73754,452

41,55140,79837,162

40,84439,93359,644

Total equity

57,25367,51860,224

79,762

57,56545,23653,78865,321

59,99968,523Retained earnings

24,36924,965

17,821

22,421

25,128-16,611

2,913

6,634

5,547

7,574

Interest-bearing debt

92,36986,467

81,66473,61869,20270,996

67,84771,31274,60575,587

Net debt*2

26,80828,706

26,473

18,541

26,43730,19830,68530,46834,671

15,942

Basic earnings per share (yen)

44.81

8.97

-46.52

34.58

24.51

-22.42

17.20

25.00

5.82

13.14

Equity attributable to owners of the parent
company per share (yen)401.07475.19375.89521.57376.57284.65364.42378.24344.55394.33

Dividend (yen)

5.00

5.00

-

5.00

5.00

5.00

6.00

6.00

5.00

5.00

Payout ratio (%)*3

11.2

55.7

-

14.5

20.4

-*3

34.9

24.0

85.9

38.0

Overseas sales ratio (%)

55.9

54.9

58.2

62.8

65.5

59.0

56.5

55.5

53.0

54.0

Operating profit margin (%)

4.1

3.2

1.5

2.4

1.5

-0.0

2.3

2.4

1.4

1.8

Ratio of profit (loss) attributable to owners of theparent company (ROE) (%)

11.2

2.0

-10.9

7.7

5.5

-7.5

5.3

6.8

1.6

3.6

Return on assets before tax (ROA) (%)

11.3

2.0

-10.1

6.9

5.0

-1.3

1.0

1.6

0.4

0.8

Ratio of equity attributable to owners of theparent company (%)

23.0

26.7

19.5

25.9

20.4

16.4

21.1

24.7

22.6

24.5

4,266

4,241

3,798

3,708

3,630

2,987

3,055

3,109

3,300

3,292

45

52

55

48

71

73

95

148

0

0

Number of employees (consolidated) (persons)

13,594

12,781

19,791

17,66817,88418,051

17,801

16,93917,623

16,956

Average number of temporary employees(consolidated) (persons)

5,482

4,625

3,324

3,097

3,156

3,706

3,397

3,107

1,550

1,892

76

75

58

End of fiscal year

Per share information

Other index data

Non-Financial Data
Number of employees (non-consolidated) (persons)Average number of temporary employees(non-consolidated) (persons)

CO2 emissions (thousands tons)
Water usage (thousands tons)
Total waste (thousands tons)

2.5

2.6

3.1

60

52

51

50

49

45

38

329

262

304

305

285

256

204

2.5

2.2

2.0

2.1

1.9

2.0

1.4

*1 While disclosure was previously made under JGAAP, the amounts shown were calculated under IFRS to allow year-on-year comparisons, in preparation for disclosure under IFRS in thefiscal year ended March 2018.
*2 C
 alculation of JGAAP is based on interest-bearing debts (cash and deposits) and IFRS is based on interest-bearing debts (the balances of cash and cash equivalents) at the end of the fiscal year.
*3 The dividend payout ratio was not presented for the fiscal year ended March 2017 as the Company posted a net loss per share for the year.

58 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 59

Other Data

Company Profile/Stock Information
Company Profile (As of March 31, 2021)
Company Name

JVCKENWOOD Corporation

Business Segments

Develop business in the Mobility & Telematics Services Sector, the Public Service
Sector, the Media Service Sector, and manage business by holding shares or equity
interests in companies engaged in equivalent business

Representative Director

EGUCHI Shoichiro, Representative Director of the Board,
President and Chief Executive Officer (CEO)Date of Incorporation

October 1, 2008

Capital13,645,825,000 yen

Number of Employees(Consolidated)

16,956

Total Assets(Consolidated)

264,326 million yen

Equity (Consolidated)

68,523 million yen

Fiscal Year-End

March 31

Head Office

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

Shareholder Composition (As of March 31, 2021)
Treasury stock
Japanese companies

1.33%

0.04%

Securities companies

Individuals and others

6.02%

Financial institution

33.84%

Foreign companies

29.05%

29.72%

Stock Information (As of March 31, 2021)

Major Shareholders (Top 10)

Ordinary General
Meeting of Shareholders

Name

Number ofstocks held

Ratio ofshareholding(%)

Ordinary General Meeting of Shareholders: March 31
Year-end dividend: March 31
Mid-year dividend: September 30

The Master Trust Bank of Japan, Ltd. (Trust Account)

14,613,200

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

Custody Bank of Japan, Ltd. (Trust Account)

13,547,100

8.26

Stock Exchange Listing

Listed on the First Section of the Tokyo Stock Exchange

INTERACTIVE BROKERS LLC

4,229,125

2.58

Security Code6632

STATE STREET BANK AND TRUST COMPANY 505103

2,775,000

1.69

Trading Unit

100 shares

Custody Bank of Japan, Ltd. (Trust Account 5)2,654,200

1.62

Total Number of Shares
Issued164,000,201 shares (including 59,758 treasury shares)

DFA INTL SMALL CAP VALUE PORTFOLIO

2,570,630

1.57

Total Number of
Shareholders

49,122

THE BANK OF NEW YORK MELLON 140040

2,482,000

1.51

Custody Bank of Japan, Ltd. (Trust Account 6)

2,310,400

1.41

JPMBL RE NOMURA INTERNATIONAL PLC 1 COLL EQUITY

2,278,745

1.39

JP MORGAN CHASE BANK 385781

2,206,841

1.35

Record Date

Held every June

Shareholder Registry
Administrator

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

Place for the Registration

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

Note: The ratio of capital contribution is calculated after deducting treasury stock (59,758 shares) from the total number of issued shares.

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JVCKENWOOD Integrated Report 61

3-12, Moriyacho, Kanagawa-ku, Yokohama-shi, Kanagawa, 221-0022, Japan
https://www.jvckenwood.com/en.html● For further information, please contact:

Public and Investor Relations Group
Corporate Communication Department
Tel: +81-45-444-5232 Fax: +81-45-444-5319
E-mail: prir@jvckenwood.com

Sustainability Management OfficeTel: +81-45-444-5380 Fax: +81-45-450-2405
E-mail: SDGs@jvckenwood.com