gawa, 221-0022, Japan

Contents
Introduction
Corporate Vision1

At a Glance

2Part 3
Foundation to Support
Sustainable Growth

Financial and Non-Financial Highlights

4

Sustainability Strategy

34

Environment

38

Society42

Governance• Message from External Directors andAudit and Supervisory Board Members

Part 1
JVCKENWOOD’s Value Creation• Corporate Governance

44
46• Directors of the Board, Audit & Supervisory

Message from the CEO

6

Strengths of JVCKENWOOD

10• Compliance

52

Value Creation Process

12• Risk Management

53

Board Members, and Executive Officers

50Part 2Strategies to Enhance Corporate Value
Over the Medium to Long Term

Part 4
Other Data
Company History

54

Medium-Term Management Plan VISION 2023

Facilities (Japan & Overseas)

56

Financial and Non-Financial Data

58

Company Profile/Stock Information60• Positioning of the Medium-Term
Management Plan VISION 2023

15

• Recognition of External Environment
16

and Basic Strategies• Outline of Medium-Term Strategy

18• Message from the CFO

20• Business Strategy

22• Manufacturing Reforms

30• Technology Development Strategy

31

Sustainability Awards & Recognitions
We aim for the sustainable improvement of our corporate value by incorporating external evaluation indicators and strengthening ESG.
• Selected for the ESG Index "FTSE Blossom Japan Index" for the second consecutive year
• Selected for the ESG Index "FTSE Blossom Japan Sector Relative Index"• Received an overall rating of 3.5 stars in the 3rd Nikkei SDGs Management Survey• Received an overall rating of 3 stars in the 5th Nikkei Smart Work Management Survey• Selected for the “2021 Certified Health & Productivity Management Outstanding Organizations Recognition(Large Enterprise Category) Program” for the fifth consecutive year, and the fourth time for the “White 500”
• Received the highest rank of “Eruboshi” certification under the Act on the Promotion of Female Participation and Career Advancement in
the Workplace• Received a “Gold” ranking in the PRIDE index, an evaluation index for initiatives related to LGBT and other sexual minorities• Received a Commendation Award in the Daiwa IR’s Internet IR Award 2021 for the third consecutive year

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

32

About the cover design
The cover design is based on the JVCKENWOOD's
mid-term management plan VISION 2023 which
was formulated in fiscal year 2021. The design
expresses the company's commitment to solvingsocial issues by utilizing diverse values and resources,
and to creating new value for a sustainable society.

*FTSE Russell confirms that JVCKENWOOD has been independently assessed
according to the index criteria, and has satisfied the requirements to become aconstituent of the FTSE Blossom Japan Index. Created by the global index anddata provider FTSE Russell, the FTSE Blossom Japan Index is designed tomeasure the performance of companies demonstrating strong Environmental,
Social, and Governance (ESG) practices. The FTSE Blossom Japan Index is usedby a wide variety of market participants to create and assess responsible
investment funds and other products.
**FTSE Russell confirms that JVCKENWOOD has been independently assessed
according to the index criteria, and has satisfied the requirements to become
a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE
Blossom Japan Sector Relative Index is used by a wide variety of market
participants to create and assess responsible investment funds and otherproducts.

JVCKENWOOD Integrated ReportAt a Glance
2%

Revenue (FYE 3/’22)Core operating income*1 (FYE 3/’22)

Others -4%

19%
282.1
billion yen

38%
58%

31%
7.1
billion yen

21%
35%

The Three Brands Familiar to Customers■Mobility and Telematics Services Sector■Public Service Sector■Media Service Sector■Others*1: Operating profit less primarily
temporary factors -net of otherincome, other expenses, andforeign exchange losses (gains)

169,532
The JVCKENWOOD Group promotes a multi-brand strategy with multiple product 171,435
brands under
the corporate umbrella. Our
three164,251
157,131
Even today,149,790
with AI and the IoT having
product brands, KENWOOD, JVC, and Victor*2, have long been popular with customers.
7,601
become cutting-edge technologies, we flexibly respond to the changing times while providing products and services that meet and
5,610
exceed our customers' expectations. The three brands will continue to evolve through Monozukuri.5,607*2: Victor brand is available only in Japan.

171,435

169,532

157,131
149,790
1,190

7,601

Mobility & Telematics
Services Sector

Mobility andTelematics
2018/3
2019/3 Services
2020/3 Sector
2021/3 ■Revenue
2022/3

p.22

The Mobility & Telematics Services Sector offers solutions that contribute to a comfortable, safe, andsecure cabin space, including car navigation systems, car audio systems, speakers, amplifiers, dashcams(including connected-type), antennas, cables, alcohol detectors, and sterilization/deodorization equipment.

Revenue and core operating 5,607
income (million yen)5,610■Core operating income

171,435

Car navigation system

In-vehicle amplifier/antenna/speaker

Telematics service

OEM Business

169,532

1,190157,131
149,790

7,601
2018/3
2019/32020/3Aftermarket Business

2,246
164,2512021/32022/3

5,610

5,607

• Dealer-installed products: Automobile manufacturers and dealers• Factory-installed products: Automobile manufacturers and component manufacturers
Dashcam

Mass merchandisers, distributors

2,246

1,190

Telematics Service Business
Auto insurance companies, ride-sharing service companies, taxi and transportation companies

Alcohol detector

Car audio system

Sterilization and deodorization device

2018/365,035

Public Service Sector

164,251
2,246

Communications Systems Business

Professional Systems Business

65,03560,881
2,928

70,94458,089■Revenue
2,467■Core operating income

Medical image display monitor

70,676628

License free transceiver

2019/360,8812,928
2020/3△1,519Received the iF DESIGN AWARD 2022 in the Product Category, a worldrenowned prize, for the VP8000, a new product in the Viking series ofmulti-band P25 digital professional radios for the public safety market.

Security system

58,0892,467
2022/32021/3

1,865

Professional radio
systemProfessional broadcasting system• JVCKENWOOD Public & Industrial Systems Corporation:
Companies, education, public services, distribution,social infrastructure, amusement facilities, etc.
• Healthcare: Medical and research institutes

70,6762022/3

1,865

2018/3

Professional Systems Business

70,9442021/3

Revenue and core operating income (million yen)Communications Systems Business• Police, fire department, ambulance services, providers of electricity/water/gas, hotels, retailers,
event companies, etc.

2020/3Public Service Sector

p.26

The Public Service Sector provides solutions that protect people's lives and livelihoods andcontribute to the creation of safe and secure cities through professional radio systems, wirelessbroadband solutions, security systems, professional broadcasting systems, and medical image
display monitors.

2019/365,03570,94470,676628

2018/3

2019/360,8812,928
2020/32021/3△1,51958,0892022/3
2,467

1,865

Media Service Sector

Media Service Sectorp.28

We have developed a wide range of products in the Media Service Sector to meet demand forhome entertainment, remote workers, and increased awareness of natural disasters and pandemics.
In the Entertainment Business, we are working with a number of popular artists to expand our shareof the packaged and distributed music business and to strengthen our non-music business.

2018/3

2019/358,972

58,795△1,5192020/32021/32022/355,40250,09354,432
2,703

2,217

• Solution: Companies, local governments, broadcasting stations, distributors• Lifestyle: Mass merchandisers, distributors• Imaging Device: Video equipment manufacturers, optical communication system vendors• Brand License: Mass merchandisers, TV and audio manufacturers overseas• Contract production business: Record companies, movie companies, publishing companies in Japan
CD shops, EC sites, music distribution sites, etc. in Japan■Revenue

Audio system

Projector

Media BusinessEntertainment Business

628

Revenue and core operating income (million yen) ■Core operating income

Portable power station

Headphones/earphones

841

Music and video content

Three products from the Victor brand received the Good Design Award
2021: HA-FW1000T wireless stereo headset, EX-D6 compact component
system, and "EXOFIELD THEATER" wireless theater system XP-EXT1

58,972374 58,795
2018/355,402

2019/32,2172020/3

503
50,0932021/354,4322,703
2022/3841
JVCKENWOOD
Integrated Report 3

2 JVCKENWOOD Integrated Report374
58,972
58,795503
55,40254,432Financial and Non-Financial Highlights

0 00 0000 000
0000
Revenue (million yen)

Operating profit (million yen)
9,054

291,304

Equity attributable to ownersof the parent company (million yen)

Dividend

Payout ratio

Number of employees(consolidated/non-consolidated) (persons)
Consolidated

85.9

282,088273,609

Dividend (yen), payout ratio (%)

17,623

6
5,873

516,956

Average years of service(non-consolidated) (years)

Non-consolidated

16,585

5

4,893
4,080

22.7

23.4

24.3

'20/3

'21/3

'22/3

38.0
2,154

16.7

954

'20/3

'21/3

'22/3

'20/3

Total assets/total equity (million yen)
Total assets

Total equity'22/3

Ratio of equity attributable to ownersof the parent company*1 (capital ratio) (%)

280,807

264,326

249,660

'21/3

'20/3

'21/3

'22/3

Ratio of profit (loss) attributable toowners of the parent company (ROE) *2(%)

'20/3

'21/3

'22/3

Total actual hours worked peryear (non-consolidated) (hours)
1,917

1,872

1,893

3,300

3,292

3,179

'20/3

'21/3

'22/3

Ratio of female executives(consolidated and non-consolidated) (%)
Consolidated

8.1

28.3

12.0

24.5

22.6

Ratio of employees withdisabilities (non-consolidated) (%)

Non-consolidated

11.4

2.40

2.45

2.57

'20/3

'21/3

'22/3

9.2
3.6
68,52359,999

'20/3

'21/3

83,961

'22/3

'20/3

Equity attributable to owners of theparent company per
486.26
share*3(yen)394.33'21/3

Interest-bearing debt

Net debt

75,58774,605344.5534,671

0.25
15,942

'21/3

'22/3

'20/3

EBITDA*7 (million yen),EBITDA margin (%)
EBITDA

69,8380.27
21,132

2.2

9.7

'22/3

'20/3

'21/3

*1: Equity attributable to owners of the parent / Total assets x 100*2: Profit (loss) attributable to owners of the parent company / Average equity
attributable to owners of the parent for the fiscal year x 100*3: Total equity attributable to owners of the parent / Number of shares issue*4: Interest-bearing debt does not include lease liabilities

6 JVCKENWOOD

4 JVCKENWOOD Integrated Report(million yen)

2020/32021/32022/321,64235,8297,059

Cash flows from△19,675 △11,804
investing activities△9,804

Cash flows fromoperating activities

Cash flows fromfinancing activities
Free cash flows

'22/3

'20/3

'21/3

'22/3

CO2 emissions (scope 1+2)
(non-consolidated) (thousand tons)

5.0

5.6

'20/3

'21/3

'22/3

Water usage(non-consolidated) (thousand tons)

45

256
38

Total waste(non-consolidated) (thousand tons)
2.0

36

204

193

1.5

1.4

△1,665 △5,342 △11,273
1,966

24,024△2,744'20/3

Capital investment*9, depreciation expenses,
research and development expenses (million yen)
2020/3

Depreciation
expenses

0.4

'21/3

'22/3

Cash flows

Capitalinvestment*9

0.8

'20/3

'21/3

'22/3

Return on assets before tax (ROA)*8(%)

27,503

10.1

8.8

'21/3

'20/3

Net D/E ratio (Times)

EBITDA margin

27,57925,534'22/3

Interest-bearing debt*4(million yen),
net debt *5(million yen), net D/E ratio*6 (times)
0.61

'20/3

4.6

1.6

11,8372021/3'21/3

Telematics services contributing to theprevention of traffic accidents
Cumulative sales of connected-type dashcams (ten thousand units)172

2022/3

10,268 12,354

20,19919,316 17,120

Research anddevelopment 17,445
expenses

15,720 15,871*5: Interest-bearing debt – Cash and cash equivalents at the end of the fiscal year
*6: Net Debt / Shareholders' Equity*7: Profit before tax + Interest expenses + Depreciation expenses + Impairment losses*8: Equity attributable to owners of the parent company / Total assets x 100*9: Tangible fixed assets only

'22/3

'20/3

'21/3

'20/3

Production ratio by region (FYE 3/’22)
Others

Asia/
China

2%

Japan

16%

9%

4%

12%

45%
37%
20%

'22/3

Japan

Europe

49

'21/3

'22/3

Others

17%

'20/3

'21/3

Revenue composition ratio by region (FYE 3/’22)

Europe

109

'22/3

China

38%
Southeast
Asia

Americas

JVCKENWOOD

7JVCKENWOOD Integrated Report 5

JVCKENWOOD’s Value Creation

Message from the CEO
production from Indonesia to Nagano, and promoted
automation, resulting in significant recovery in production
and sales in the fourth quarter. We believe that we haveachieved some success in ensuring a more stable supply of
products. Due in part to the reduced impact of COVID-19
compared with the previous fiscal year, we also increased
sales and income for FY 2021.

Despite such circumstances, we have been working tostrengthen our revenue base by redefining our businessportfolio. We have been reorganizing in the Mobility &Telematics Services Sector, expanding our Telematics
Service Business, terminating production of consumer
video cameras, shifting resources to growth businesses,
and reorganizing our wireless business portfolio throughselling subsidiaries. We also made design changes in
response to the components shortage, returned domestic

Change for Growth
Towards the second year of the Medium-Term
Management Plan, “VISION 2023”

Anticipate changes for the future
because we believe that fundamental reform is necessary forimportant medium- to long-term company-wide risks. With thefollowing agendas as its main mission, the department will optimize
our supply chain by enhancing process visualization and monitoring,
thereby reliably promoting business plans and accelerating
management decision-making from the perspective of cash flow.

However, the components shortage (particularly for semiconductors)
has exposed a new challenge—the vulnerability of the supply chain
in our group. In FY 2021, we were able to recover by designing
replacement components and launching an automation line;
however, in April 2022, we established the position of Officer in
Charge of SCM Reform and the SCM Innovation Department

R ep re sen ta tive D irector of the Board,
P resid e n t an d C E O
S ho ich iro Eg u ch i

Main missions of the SCM Innovation Department(1) Set up and then monitor, track, and proactively manage a KPI tree related to SCM(2) Improve cash flow through activities to optimize inventories(3) Develop IT tools such as data visualization

We achieved both sales and income growth during the fiscal year ended March 2022 in a rapidly changing business environment(4) Reform SPI* process into a supply chain process that connects the entire company*Sales, Production, and Inventory

Our fiscal year ended March 2022 was a very volatile year.
Under VISION 2023 Medium-Term Management Plan for
FY 2021 to FY 2023 (announced in May 2021), we haveadopted "Change for Growth" as our basic strategy. We
will fundamentally strengthen our corporate structure overthe next three years, accelerate growth even further by
overcoming the sense of stagnation caused by COVID-19,

and take the next step forward. However, due to a shortagein the supply of components such as semiconductors,
price hikes in components, and distribution delays, I feelthat we did not achieve full-scale acceleration of growthin the first fiscal year.

Results and review of the first fiscal year of VISION 2023
Redefinebusiness portfolio

Medium-Term Management Plan and JVCKENWOOD’s vision

・Reorganized in the Mobility & Telematics Services Sector and expanded our Telematics Service Business・Restructured our wireless business portfolio by selling subsidiaries

Leap forward for excellenceStrengthening
financial base・Ended production at Thailand production base (JKET )・Returned to domestic production in JVCKENWOOD Nagano Corporation and promoted automation*2・Continuously strengthened our business structure through CEM projects

e

anc

Enh

・Strengthened response to supply chain issues by establishing the SCM Innovation Department
*3

nt
me

u

of s

ble

na
stai

ate

c

or
orp

Respond to*4*5・Strengthened cyber security measures (JK-CIRT / CC )management issues

・Implemented factory security measures for automotive products at JVCKENWOOD Nagano Corporation*1: JVCKENWOOD Electronics (Thailand) Co., Ltd.
*2: COVID-19 Emergency Measure*3: Supply Chain Management*4: JVCKENWOOD Central Incident Response Team (cross-company response team to strengthen cyber security resilience)*5: Coordination Center

6 JVCKENWOOD Integrated Report

Strengths of
JVCKENWOOD“Creating excitement and peace of mind for thepeople of the world” Contribute to solving social issues

Creatingsocial value

・Stopped producing consumer video cameras and shifted resources to growth businesses*1Strengthen
revenue basepeace of mind for the people of the world,” we aim to become astrong and resilient company that continues to anticipate change
for the future, in order to enhance our corporate value over the
medium-to-long term.

In this era of rapid change, a company must be flexible and quick
in dealing with change and must ensure that it is committed to
growth. Under our corporate vision of “Creating excitement andBuilding
a corporate
cultureDesign-oriented management

lue

va

Developing
human
resources

FYE 3/’23 Management Targets
Revenue

320 billion yen or moreCore
operating income

12 billion yen or more

ROE

10 % or more

Dividend payout ratio(Consolidation)

30% as a guideline

Equity capital
ratio

30% or more

CF from operating
activities

70 billion yen or more(total of three years from 2021 to 2023)

Debt-to-equity
ratio

1.0 or less

JVCKENWOOD Integrated Report 7

JVCKENWOOD’s Value Creation

Message from the CEO
JVCKENWOOD’s unique portfolio strategy
We have been transforming our business portfolio for
more than 10 years since implementing management
integration in 2008. At that time, more than 70% of sales
were from B-to-C (business-to-consumer) businesses
such as TV and video cameras. However, we liquidated
unprofitable businesses in response to market changes,
and now B-to-B business (in the three main sectors ofMobility & Telematics Services, Public Service, and Media
Service) now account for approximately 70% of sales. Our
Medium-Term Management Plan has also revealed theway forward in redefining our business portfolio. There
are high risks involved in single stand-alone businesses,
so we will continue to select and discard businesses
within these three sectors in the future. We will continue
to monitor our changing business environment as we
review" businesses that need to be addressed" and"revenue base business" that we must reform, and"priority businesses" and "next generation businesses"that can accelerate the concentration of management
resources toward growth.
p.18

Composition ratio of BtoC and BtoB ■BtoC ■BtoB
FYE 3/’09

FYE 3/’22

In the Mobility & Telematics Services Sector, the Grouptransitioned from focusing on the Aftermarket Business,
and now focuses on the OEM Business for automobile
manufacturers and Tier 1 manufacturers, and thisbusiness now accounts for approximately 60% of sales
in this sector. Our car navigation systems have grownto have a market share of approximately 30%* in the
dealer-installed (dealer options) business for Japanese
automobile manufacturers. These changes are part ofour business portfolio strategy. The brand power wehave cultivated in the commercial market, our highsensitivity to the market, and our planning and design
capabilities to quickly reflect customer needs in our
products are major assets that form the strength of ourgroup. In addition, the video and optical technologies wehave developed through designing our video cameras
and high-definition projectors give us an advantage overcompetitors and help to further solidify our position in
the dashcams market.
*According to a survey by JVCKENWOOD Corporation

Mobility & Telematics Services
business portfolio transformation■Aftermarket ■OEM
■Telematics Service

FYE 3/’09

FYE 3/’22

15 %

11 %

85 %

28 %
61 %

Meeting the needs of the new world, such as autonomous driving and EVs
The automotive industry, one of our group’s major
customers, is seeing greater activity in trends such as
CASE*1, MaaS*2, and EV. Even if automated driving and EVs
become widespread, in-vehicle comfort and entertainment
will remain essential as long as people continue to use cars.
We believe that human-machine interfaces (HMI) outside ofdriving will come under greater focus. We are proud that
our HMI planning and design capabilities, in addition to thehigh-quality sound and recording technologies we havecultivated over the years, will contribute toward upgrading
vehicle interiors in the age of automated driving and EVs.
*1: Connected, Autonomous, Shared & Services and Electric*2: Mobility as a Service*3: Electric Vehicle of Nissan Motor Co., Ltd.
*4: Key Performance Indicator

8 JVCKENWOOD Integrated Report

We are also already working with automobile manufacturers
on various initiatives to support the shift to EVs. One suchproject is the development of a portable power station using
recycled batteries from “Nissan Leaf”*3 vehicles, which
was publicly announced in April 2022. With cumulative
global sales of more than 500,000 units, we will utilize thetechnology and expertise we have developed through thedesign of in-vehicle devices such as car navigation systems
and dashcams, as well as portable power stations, in orderto design and develop products optimized for reusing usedbatteries as well as for safety.

Companies are now expected to contribute to SDGs, andwe will specifically promote this new business scheme asa way to reduce environmental impact and contribute toa low-carbon society. Waste reduction and reuse of autocomponents have a significant social impact. In our quest to
be carbon neutral, we consider recycling efforts to be oneof the core components of our business.
For details, see "Development of environmentally friendly
products" on page 41 “Environment.”
p.41

Recycled Nissan LEAF battery cells that will be used in the product (left) and the
product image under development (right)

Instilling sustainability management inside and outside the Company
Our approach to sustainability is to first identify social
issues that are not only closely related to our business,but also that we believe will contribute to society. We
then identify material issues and set KPIs*4 for each topic,
and promote initiatives to solve these issues, startingat the front lines of business. The key for us is to start
nearby and expand outward. We believe that it is easy
for employees to understand how our business is linked
to solving social issues.
For example, dashcams generate annual sales revenueof approximately 30 billion yen, and we have heard thatthe connected-type dashcams that we supply to major
auto insurance companies have led to a reduction intraffic accidents. In addition to outdoor and businessapplications, our commercial transceivers are expected
to be used in rescue and relief efforts in disasterstricken areas, and we believe that they will contribute

p.34-37

to reducing the number of deaths, missing persons, anddirectly injured people in disasters.
In order to expand these efforts, we believe it is important
to know the Company’s ranking in external evaluations,and to motivate our employees to aim for even higher
positions within the Company. Furthermore, it isimportant that children become interested in SDGs andsustainability, and understand that our Group’s activities
are for this purpose. With this in mind, we are actively
involved in the development of children, who will be
responsible for the future, by providing on-site lectures
aimed at promoting the understanding of SDGs throughthe Group’s business activities, as well as workplace tours
and work experience for students.

Continuing to ask, “What is purpose management?”
A major topic of VISION 2023 is "Change for Growth,"and I feel that while there are some things that must bechanged in order to transform and grow for the future,
there are also some things that cannot be changed. In
the words of the American theologian Reinhold Niebuhr,“God grant me the serenity to accept the things I cannotchange, the courage to change the things I can, andthe wisdom to know the difference.” Some things, likeupbringing, cannot be changed, but there are otherthings in the world that must be changed.

In this rapidly changing and highly uncertain world, we
will verify whether our corporate vision is consistent
with the conceptions of our many stakeholders and finda purpose that is satisfactory. We believe that purpose
management means to constantly question our own
raison d’être, and to make things better.

What should I accept and what should I change within alimited time frame? I see this as a major topic and missionthat I must consider as CEO.

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 Iconic 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
The KENWOOD brand, with its red triangle brand logo that represents high quality, innovation,and sharpness, provides products based on audio and communications technologies. The brandcontinues to expand its range of in-vehicle products and services.

Car navigation system

DashcamMain Products● Car navigation system● Dashcam● In-vehicle amplifier/Antenna/Speaker● Telematics Service

The JVC brand, which covers a wide range of areas from audio andvisual products to healthcare systems (mainly in overseas markets),
offers products and services that are closely related to people's lives.

Revenue Composition Ratio (FYE 3’/22)

Public Service Sector

Design Management

Professional
radio system

Revenue Composition Ratio (FYE 3’/22)

Media Service Sector

Creating new corporate value
by improving brand power
and innovation through design
management

The Victor brand, familiar to many thanks to Nipper, the dog depictedin "His Master's Voice," focuses on technologies and products that areappropriate for the times, based on out-of-the-box thinking.

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 (FYE 3’/22)

JVCKENWOOD Integrated Report 11

JVCKENWOOD’s Value Creation

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.

Value Creation Process
INPUTS

Medium-Term Management Plan VISION 2023

Financial capital
Total assets

280.8billion yen

OUTPUTS

BUSINESS ACTIVITIESManagement capital

p.14-19

Value we provide to society

Three brands

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

Corporate Vision

Basic strategies*1

Changep.4-5

Manufacturing capital

Providing value for social issues

GrowthRebuild the revenue base

Evolution of DX business	Further promote manufacturing reform	Strategic products for the post COVID-19 world	Reorganize and consolidate production
basesImprove profitability and ROE commensuratewith capital invested

OUTCOMES

Products, Services, Solutions, etc

p.37

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

Ｍajor manufacturing companies

9p.56-57

Research &Development

Intellectual capital
R&D expenses

15.9billion yen

Procurement &Manufacturing

Planning &DesignSales

After-sales
service

R&D2 Research, Development and Design*2

SDG-related patents

Mobility & Telematics Services Sector

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

10％

More thanp.36

JVCKENWOOD’s Management Principles
Human capital
Number of Group employees(consolidated)

Creation value throughMonozukuri

Building a corporate
culture that adapts andembraces change

Three business sectors

Investing in people tostrengthen capabilities
and push boundaries

16,585

OEM Business, Aftermarket Business, Telematics
Service Business

Public Service Sector
Communications Systems Business, Professional
Systems BusinessMedia Service Sector
Media Business, Entertainment Business"Profitable Growth" and "Solving Social Issues"
Social andrelational capital■ Diversity & Inclusion

Major sales & marketing
bases

19

Sustainability Management & Evolution of ESG

p.34-53

Approach to profitable growth based on SDGs strategic themes

Natural capital	Strengthen governance and further improve the effectiveness of theBoard of Directors

Contributing to thecreation of safe andsecure communities
by deterring violent
crime■ Climate Change■ Sustainable Monozukuri■ Accelerated Innovation■ Risk Management Initiatives■ Stakeholder Partnerships

Contributing to the realization of a sustainable society

Total energy consumption

608,521GJ

Contributing todisaster prevention andmitigation in the eventof abnormal weather
and disasters caused byclimate change*2*1: End of March 2022

Cycle of value creation that contributes

to profitable corporate growth*2: FYE 3/'22

Management capitalBusiness activities

Products, services and solutions

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 thecapabilities 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
human resources and organization. VISION 2023 aims to createbusiness that will drive sustainable growth by addressing sustainability
management and ESG evolution with “Change for Growth” as the twowheels.

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

Creating excitement andpeace of mind for the peopleof the world

Becoming an excellent
company with strengthand toughness

VISION 2023
(2021-2023)
Further strengthen the revenue baseAccelerate growth through highly(2018-2020)

ChangeEarningPower

14 JVCKENWOOD Integrated Reportprofitable business

VISION 2020

4 Values

CreateImplemented COVID-19
Emergency Measures

Transform into a structure capableof 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.

Risks

Opportunities

Recognition of external environment
 orsening of global supply chain risksW
for semiconductors.
Business impact of prolonged spread of
COVID-19.
Growing global geopolitical risk.
Supply chain disruptions due to climatechange.
Impact of U.S.-China trade friction on
the global economy.
Global economic impact of Russia's
invasion of Ukraine 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

1ChangeMarket attractiveness

Low

Priority business• Mobility business (OEM factory-installed anddealer-installed products)• Broadband wireless business• Dashcams for auto insurance

ChangeBusiness that needs
to be addressed

Revenue base business• Consumer and professional camera business• Projector and medical monitor business• In-vehicle mechanical products and optical
pickup business• Mobility business (aftermarket)• Professional communications systems business• Entertainment businessProfitability and efficiency

Low

High

ChangeChangeinChangesales
in salesrevenuein salesrevenuerevenue ■Automotive Sector■Public Service Sector
composition
composition
composition
ratioratioratio■DX Business, others■Mobility & Telematics Services Sector■Others■Media Service Sector

FY 2020
FY 2020
FY 2020

FY 2021
FY 2021
FY 2021

7% 7%

2% 2%

7%

18% 18% 18%

273.6
273.6
273.6
52% 52% 52%

billionbillionyenbillion
yen yen

22% 22% 22%

18 JVCKENWOOD Integrated ReportNew/
Adjacent
fieldsMobility &Telematics
Services Sector

Telematics
Service Business

FY 2023
FY 2023
FY 20232%

1% 1%
18% 18% 18%

19% 19% 19%

282.1
282.1
282.1
58% 58% 58%

billionbillionyenbillion
yen yen

21% 21% 21%

1%

320.0
320.0
320.0
60% 60% 60%
billionyenbillion
yen yen% 21%
21% 21billion

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
connected-type dashcams, andthe data service business as the IoT
platform service business.

FY 2021

Adjacent Fields

Telematics service
business• Connected-type dashcams• Electronic mirror dashcams• In-vehicle electronics appliances

Next-generation
opticalcommunication
device businessMedia
Service Sector

FY 2020

New fields

IoT platform
service business

PublicService Sector

Adjacent• Broadband wireless system• AI temperature monitoring
station• Compact immunoassay system• Portable power supply• Air purifier/sterilizer/deodorizer• Remote camera system

New

FY 2023

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

GrowthNew business ofnext generation• Telematics service business• IoT platform service business• Next-generation optical device businessChange25%

9%We are aggressively entering
into areas adjacent to ourexisting business (new markets
or new products) and new areas,
aiming for a 25% revenue ratio
in these two areas.

Redefine the Business Portfolio and Sustainably Enhance Corporate Value
Growth273.6 282.1
billion yen billion yen

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

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 auto 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

parent company to total assets, which is a measure of financial stability, ofcontinued these activities in FY 2021 as well.

30% or more at the end of FY 2023 while paying stable dividends with aOn the other hand, in FY 2021, production disruptions due to components

target dividend payout ratio of 30%.

shortages and prolonged logistics lead times had a significant impact on

Meanwhile, by earning 70 billion yen or more in operating cash flow over

our business performance. It was also a year in which we became acutely

we will work to reduce interest-bearing debts and financial

the cumulative three years of the VISION 2023 period, we plan to reduce

aware of the major challenges in our supply chain management (SCM).

the ratio of interest-bearing debts to equity (D/E ratio) to 1.0 or less at the

In order to overcome these challenges, we established the position of

expenses to achieve sustainable growth in corporate value.

end of FY 2023.

Officer in Charge of SCM Reform and the SCM Innovation Department on

R ep re sen ta tive D irector of the Board, Senior Mana g i n g E x e c u t i v e O ff i c e r,
C hie f Fin a n cia l Officer (CFO)

Cash flow allocation

by visualizing processes and strengthening monitoring in order to build a

Under VISION 2023 we will focus on generating cash flow and ensure ansystem that will enable us to steadily promote business plans and accelerate

effective outflow of cash after making the use of funds clear.

management decision-making from the perspective of cash flow.

While making investments with an emphasis on profitability
and capital efficiency with an awareness of the cost of capital,

April 1, 2022, and are working on promoting supply chain optimization

M a s a t o sh i Miy a m o to

As for inflows of cash, 80 billion yen is expected with cash of 10 billion yen

Allocate management resources in a timely and precise manner, with an awareness of
Basic
policythe cost of capital and an emphasis on profitability and capital efficiency
Reduce interest-bearing debts and financial expenses while equalizing repayments
each fiscal year

resulting from the business and sale of assets selected from the perspective

Return to shareholdersof capital efficiency, in addition to operating cash flow.

One of the main pillars of our financial strategy is the stable distribution of

On the other hand, with regard to outflows of cash, we will make strategic

profits to shareholders. At the same time, securing management resources

investments, pay dividends, and repay interest-bearing debts within thefor future growth is a top management priority. Accordingly, we will decide

limit of 20 billion yen, after excluding ordinary investments of 60 billion

on dividend of surplus, etc. by considering our profitability and financial

yen that are necessary to maintain the business. In particular, strategic

position comprehensively. Based on such policy, VISION 2023 plans to pay

investments are expected to include investments in growth business,dividends with a target dividend payout ratio of 30%.

Performance results and review offiscal year ended March 2022

operating activities decreased 28.8 billion yen from the previous period

development of technological platforms, structural reforms, business baseMeanwhile, in order to respond to future changes in the businessto 7.1 billion yen due to a large increase in inventories resulting fromreforms, and IT investments. In addition, by using cash flow and ROA byenvironment, we will effectively utilize retained earnings to strengthen our

Although the entirety of FY 2021 was largely affected by a shortage in the

production disruptions caused by components shortages and prolonged

business sector as key KPIs , we aim to improve the accuracy of investment

financial structure, realize stable dividends on an ongoing basis, strengthen

supply of components such as semiconductors, net sales increased fromlogistics lead times.

judgment and post-investment budget and performance management.

our management structure for future business development, and invest in*3*4

growth areas.

the previous period to 282.1 billion yen due to a reduced impact of COVID19 and a significant recovery in production and sales in the fourth quarter.

Financial targets

Core operating income decreased 300 million yen from the previous

Under the Medium-Term Management Plan VISION 2023, we aim to

Toward permanent strengthening ofbusiness structure

period to 7.1 billion yen due to problems in the supply of components

achieve revenue of 320 billion yen or more, core operating income*1 of 12

Since 2018, the Company has been reforming management throughand cost increases. However, operating income and net income increased

billion yen or more, and ROE*2 of 10% or more by FY 2023, the final year

reforming manufacturing as a measure to strengthen its business structure

significantly from the previous period due to gains on sales of subsidiariesof the plan, by steadily implementing the business strategies set forth inacross the Company. We achieved steady results in FY 2020 through theand valuation of financial assets, as well as new recognition of deferred tax“Change for Growth.” In addition, we aim to both maintain growth andCEM (COVID-19 Emergency Measures) project launched to thoroughly*2: Ratio of profit attributable to owners of the parent company

assets, resulting in an ROE of 8.1%. On the other hand, cash flow fromsecure stability by achieving a ratio of equity attributable to owners of the

curb cash outflows as a measure against the spread of COVID-19, and we*3: Ratio of return on total assets

Changes in dividend
FYE 3/’21

FYE 3/’22

FYE 3/’23(Forecast)

5 yen

6 yen

7 yen

Dividend*1: Operating profit, net of other income, other expenses, foreign exchange losses(gains), and other primarily temporary factors*4: Abbreviation of Key Performance Indicators

Sales revenue

Numerical
targets

320

12

Ratio of profit attributable toowners of the parent company (ROE)

10% or morebillion yen or morebillion yen or more

(FY 2023)(FY 2023)

282.1 billion yen

7.1 billion yen

8.1%(FY 2021)(FY 2021)(FY 2021)

Consolidated dividend
ratio

Ratio of equity attributable to ownersof the parent company to total assets

approx. 30%

30% or more

(FY 2021–FY 2023)

Core operating
income(FY 2023)

Operating cash flow

70

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

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

Cash-outInvestment in growth business
Strategic investment andothers (20 billion yen)

Technological platform development
Structural reforms, business base reforms,
IT 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)

16.7%

28.3%

7.1 billion yen

0.9(FY 2021)(FY 2021)(FY 2021)(FY 2021)

20 JVCKENWOOD Integrated Report

Cash-inBusiness/Sale of assets/
Others (10 billion yen)

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 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 OEM Business is operated through two channels: thedealer-installed channel and the factory-installed channel(products installed on the vehicle production line). 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 Japan andoverseas. But we have secured a top-class position in the carnavigation systems where we have utilized our strength. In
Japan, where dashcams are becoming increasingly popular,
we propose products that realize high performance, highreliability, and high-quality video recording by merging
our in-vehicle technology and video/optical technology
cultivated in the past, securing a top-class share in themarket.
The Telematics Service Business is centered on sales ofconnected-type dashcams to the auto insurance, ridesharing and truck transportation industries based on
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 qualityof response by auto insurance companies in the eventof an accident, and improving management efficiency oftrucking companies.

In the Telematics Service Business, we will further expand ourbusiness at a global level by expanding our highly respected
high-functionality dashcam business, and by expanding
product lineups and services. Furthermore, centering onconnected-type dashcams, we will provide new telematics
services by developing business for auto insurance companies
and data service business utilizing vehicle data.

FY 2023 (FYE 3/2024) Target: Adjacent and new field sales ratio of 30%
FY 2021 (FYE 3/2022)

FY 2022 (FYE 3/2023)

12%
78%

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

30%
70%

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

Priority strategy
Global telematics service market*2(Unit : million unit)*1: Abbreviation of Electronics Manufacturing Service; a contract manufacturingservice for electronic equipment.

Main products

200

+9%

Driver safety
and security

Telematics services
for auto insurance

Reduction of
traffic accidents
Reduce traffic
congestion

IoT Platform

100
50

Development of the telematics service business

22 JVCKENWOOD Integrated Report

DashcamIn-vehicle amplifier/Antenna/Speaker

CAGR*3150

Taxi dispatch
service

Car navigation system

FY 2023 (FYE 3/2024)

22%

88%

Evolution of MaaS

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 connected-type dashcams via collaboration with service
providers such as auto insurance 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.

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 23

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 connected-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 auto insurance companies, we will launch into the high-functioning dashcam service
business which will allow seamless response through utilization of connected-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

Auto insurance company

One of the leading manufacturers
in the dashcam market

Driver-assistanceservices

Telematics services
for auto insurance

Taxi dispatch service

Expansion of business domain

We will expand the Telematics Service Business by extending our business domain to data service businesses

External services
Supported devices(namely, the dashcam device business which has achieved a top-class market share), the high-functioning
dashcam service business (which effectively makes use of connected-type dashcams with a scale of a cumulative

Smartphone

total of 1.7 million units [as of the end of March 2022 ]), and the IoT platform service business.

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 revenueof more than 30 billion yen company-wide (total for Aftermarket, OEM, DX business for auto insurance companies, etc.) in FY 2020. We
will continuously expand product lineups and develop sales channels with the aim of further expanding the business.
Connected-type dashcams for auto insurance companies are developed and supplied to auto insurance companies, providing safety andsecurity through their rapid response and driver assistance functions in emergency situations.

Connected-type dashcam for auto 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

Auto 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.
• Provide a place to enjoy multipurpose communication.

Rearview dashcam

24 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 25

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 (p.25), 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.
*1: Vesicles about 50 to 100 nm in diameter secreted by many types of cells foundin body fluids, such as blood, saliva, and urine.

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 (FYE 3/2024) Target: Adjacent and new field sales ratio of 11%
FY 2021 (FYE 3/2022)

FY 2022 (FYE 3/2023)

4%96%

Major themes for
adjacent andnew fields

FY 2023 (FYE 3/2024)

7%

11%

93%

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

89%

• AI body temperature measurement solution

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

4,000

+6%

3,000

Main products
2,000
1,000
0
2020
Broadband

Professional radio system

26 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 27

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 businessby 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 offers portable power sources that canbe used outdoors and for disaster prevention applications.
It also offers Bluetooth®-compatible headphones andearphones 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 expands the business of projectors
and professional video cameras to meet the needs ofprofessionals. 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.

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 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 business will strengthen its proposals of strategic products,
such as 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 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 will shift resources of professional
video cameras to the remote camera-related market, where
demand is growing. In the projector business, development

FY 2023 (FYE 3/2024) Target: Adjacent and new field sales ratio of 15%
FY 2021 (FYE 3/2022)

The Imaging Device Business focuses on external sales of
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 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 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.

9%91%

Major themes for
adjacent andnew fields

FY 2023 (FYE 3/2024)

FY 2022 (FYE 3/2023)

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.

Portable power station

Music and video content

Data source: Company estimates based on various secondary data

Headphones/earphones

28 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 29

Strategies to Enhance Corporate Value Over the Medium to Long Term

Strategies to Enhance Corporate Value Over the Medium to Long Term

Manufacturing Reforms

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 reforms, we aim to integrate production
bases into a scale commensurate with total production volume andtotal man-hours by returning to domestic production and promoting
automation of production. In addition, by reviewing design process standards, we will minimize business-specific individual optimization andmake efficient use of existing tools and equipment. At the same time,

we will strengthen our efforts to integrate value engineering and cost reduction design through procurement reforms, and to build an ecosystemwith partner suppliers. Based on these activities, we will transform theCompany into a structure that can earn stable profits.

Technology development, product design, and quality assurance

Optimize production technology, product manufacturing, andproduction basesI 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”

R&D

The theme of our technology development strategy in
the Medium-Term Management Plan VISION 2023 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 byreorganizing bases
Advance management resources through promotion of automation

Interference
type AI

Returning to domestic production
manufacturing reform initiatives, and promoted automated production
as a means of upgrading management assets. Full-scale production of
car navigation systems for the domestic aftermarket began in February
2022 at JVCKENWOOD Nagano. In fiscal year 2022, we will produce
more than 300,000 units per year, including dedicated navigation
systems for domestic automakers. Beginning in fiscal year 2023, we
will achieve a production scale of approximately 500,000 units per year.

Location
info.

DesignSecurity

VisualThe stagnation of the global economy due to COVID-19, the difficulty
in procuring parts and materials (especially semiconductors), andthe disruption of logistics networks, caused great concerns withmaintaining continuous production. In order to reform total costs,
we therefore quickly decided to take up the challenge of realizing a
production model based on local production for local consumption,
accelerating our efforts to return to domestic production as part of our

Medium-Term Management Plan VISION 2023

Customerperspective

Communications

CO-creativity
UX
experience

Biological
info.
5G/6G

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
JVCKENWOOD Nagano Corporation

30 JVCKENWOOD Integrated Report

Interference
type AI

5G / 6G

Automated manufacturing line

Vehicle information
Ensuring robustness
Tamper detection

High-precision data analysis
Automatic processing

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 31

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
measures and corporate culture reforms by holding up“Building a corporate culture that adapts and embraceschange” and “Investing in people to strengthen capabilities
and push 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 recruitment in the strategy, JVCKENWOOD will
pursue an institutional reform that realizes diverse work
styles and contributes to self-realization. In personnel
allocation, the organization will be revitalized by rectifying
the age distribution of employees and having personnel
rotation, and measures for enhancing productivity will be
carried out on the assumption of a personnel decrease in
the future. On the other hand, a system for developing
personnel abilities will be prepared to enable employees
to demonstrate their skills to the maximum with an eye
on diversification of 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 canaccommodate various needs including highly specialized
jobs, shorter work days and shorter work hours. Basedon trends in society, The Company will reorganize andshift to a compensation system that reflects the roles andachievements of its employees.

Corporate
VisionManagement
Principles

Personnel
planning

Engagement

Recruitment

Training andassignment

Resource Management (HRM)
Assessment

Institutional 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.

32 JVCKENWOOD Integrated Report• Changes and new ideas• Transformation• Ability to cope with changes• Changes in work styles and lifestyles

they will lead to the creation of a corporate culture. The
Company believes that employees will apply “What they
can do,” “Whom they aspire to be,” and “Values” to various key words that will be created from the four values of“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

Remuneration

resources by utilizing Human

Recruitment, personnel allocation andability development

In line with our Management Principles, which wererenewed along with the formulation of the new VISION
2023 Medium-Term Management Plan 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, andOrganizational
development

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

Introduction of a compensation system for managers
that reflects roles and performance.

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

Earning
powerWork style reforms
JVCKENWOOD will promote the realization of diverse and flexible
work styles through implementing work style reforms. We havefocused especially on promoting teleworking by establishing anefficient teleworking environment while accelerating digitizationand shifting to electronic signatures. We are also considering
using satellite offices and adopting hot desking. Finally, we

are also considering expanding shorter working hours to fulltime employees, introducing a system of side jobs and dual
employment, adopting a super-flex system, and hiring employees
within certain areas (with no possibility of being transferred). The
Company will also advance a health management initiative that
supports the activities of each employee.

Four approaches to workstyle reforms
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 management

Expansion of shorter days and shorter working hours
to full-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 33

Foundation to Support Sustainable Growth

Sustainability Strategy

Process for identifying materiality

Towardsustainable growthBased on our corporate vision, the JVCKENWOOD
Group aims to continuously enhance its corporate
value and contribute to society through "profitable
growth" and "solving social issues on a global scale"
while building deep relationships of trust with all
stakeholders.

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 has established the Sustainability Management Office under the supervisionof the Board of Directors, with a responsible executive officer also serving as a director.
The Sustainability Management Office is responsible for implementing the company-wide
sustainability promotion strategy and managing its progress.
Board of Directors
ReportSupervision

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

Ⅶ. Governance Ⅲ. Environment

Domestic Business
Marketing Division
Overseas Business
Marketing Division

Business Sectors

Administrative Divisions

Mobility & Telematics
Services Sector

Corporate Audit OfficeFinance & Accounting
Reform Project

General Administration
Department

Overseas regions

Legal & Compliance OfficeFinance Operation
Department

Institute of Future Creation

AmericasGroup Management Office

Accounting & Tax
Department

Intellectual Property
Department

EMEA*

Corporate Secretary Office

Corporate Strategy
Department

Engineering Innovation
Department

APAC*2SCM Innovation Dept.

Corporate Communication
Department

Information Technology
Department

China

Procurement & Logistics
Department

Human Resources
Department

JK-CIRT/CC

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

34 JVCKENWOOD Integrated Report

Public Service Sector

Media Service Sector

DX Business
Development Dept.

Ⅳ. Quality

I. Society
Prevent traffic accidents

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• Promote active roles for women• Corporate culture and work style reforms

Sustainability Management Office

Ⅵ. Safety

Top Priority key issues

III. Environment

Marketing/Region

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

Address climate change• Reduce greenhouse gas emissions (Scope 1, 2, 3)• Develop environmental management systems

Initiatives for disaster prevention and mitigation• Create value with disaster-prevention and disastermitigation products & services

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

Ensure a safe and secure transportation system• 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 35

Foundation to Support Sustainable Growth

Sustainability Strategy

 revention of traffic accidentsPand global warming
The "Saisoku Navi" car navigation system series helps prevent traffic accidents through safety- and security-conscious functions, such as "reverse run warning"(which warns the user in real time when a reverse run condition is detected while driving on an expressway), "temporary stop display" (which notifies the driverof temporary stop information at an intersection), and "virtual room mirror" (which ensures rearward vision in conjunction with a drive recorder).
The Road Traffic Act has been revised in recent years in response to tragic traffic accidents caused by drunk driving. Many business establishments that use
automobiles will be required to check for alcohol consumption using alcohol detectors. JVCKENWOOD is planning to launch a connected-type alcohol detector
that works with smartphones to help record and manage results. Through providing such products and services, we intend to continue helping to prevent
traffic accidents.
Our Mileage Adjusters (linked to an Intelligent Transport System (ITS) through an ETC2.0 on-board unit) receive information on traffic congestion, weather,disasters, traffic signals, etc., and freely set routes to destinations according to various conditions, such as tolls and road width, to support safe eco-driving.
These systems support safe eco-driving and help reduce greenhouse gas emissions from automobiles.

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

Please visit our website for KPIs, goals and actual results for FY 2021.
https://www.jvckenwood.com/en/sustainability/group/materiality.html

No.

Materiality

FY 2022 KPIs & Target

1

Reduce greenhouse gas emissions (Scope 1+2)

• Reduce greenhouse gas emissions (Scope 1+2): Reduce by 25.2% by FY
2025 compared to FY 20192

Reduce greenhouse gas emissions (Scope 3)• Reduce greenhouse gas emissions (Scope 3): Scope 3 Calculation andreduction for categories 1, 4, and 11

3

Manage water use• Manage water consumption: 6% reduction from FY 2019 levels by FY
2025

4

Reduce wastewater and waste• Improve waste recycling rate: 90% or more recycling rate by FY 2025

5

Identify and reduce the amount of plastic used

• Reduce the amount of plastic used

6

Prohibiting forced labor and child labor• Conducted human rights due diligence activities

7

Promoting active roles for women• Ratio of women in executive positions: Over 6.5%

8

Corporate governance• Enhance deliberations at Board of Directors meetings• Hold training courses for external directors• Hold off-site meetings for directors

9Information security• IT security training attendance rate: 92% or higher• Number of cyber security incidents: 2 or less10

Create value through mobility products &services• Expansion of market share in the navigation market• Become the No. 1 manufacturer in the dashcam market in 2023

11

Manage/utilize intellectual property• The number of patent applications related to SDGs 3 (Good health and wellbeing), 9 (Industry, innovation and infrastructure), and 11 (Sustainable cities
and communities) will account for at least 10% of all patent applications.

Collaborate with stakeholders• Work with external business partners to bring portable power supplies
that reuse car batteries to market

1236 JVCKENWOOD Integrated Report

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

SDGs

Contributing
Products

Car navigation system
Dashcam
Alcohol detector

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
A self-owned communication system that can respond quickly
to extreme weather events and resulting economic, social, andenvironmental damage and disasters is indispensable. JVCKENWOOD
offers specified low-power transceivers with anti-bacterial and antivirus treatment that require no licenses, qualifications, or official
applications; incur no basic or call charges; and are for outdoor andbusiness use. We also provide professional radio equipment for use
at disaster sites where high quality and robustness are required.
Portable power stations can also be used during power outages anddisasters, helping to reduce the damage caused by disasters.

Contributing
Products

Professional radio system
Portable power supply

 reating a safe andCsecure community
The risk of crime continues to increase with increased urbanization and thewidening gap between rich and poor. Security systems for crime prevention
and surveillance are therefore a necessity for keeping cities safe and secure.
JVCKENWOOD is leveraging its strengths in audio, visual, andcommunication technologies to develop security systems, such as crime
prevention and surveillance cameras, to help deter crime and make living
environments safer. We also contribute to improving the safety of public
transportation through our work on intelligent video analysis systems
to detect abandoned bundles, falls from station platforms, and humanfeatures.

Contributing
Products

Security system

JVCKENWOOD Integrated Report 37

Foundation to Support Sustainable Growth

Environment

Addressing climate change

Our approach to the environment
When doing business, developing products, and providing services, the
JVCKENWOOD Group continually strives to keep our environmental
impact to a minimum. In FY 2021, we formulated a new environmental
vision and basic environmental policy, called “JK Green 2025.”

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

Achieve carbon neutrality by 2050

• 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• Monitor and reduce plastic
consumption

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

As part of our efforts to achieve these targets, we have been monitoring
power consumption at business centers, upgrading production/airconditioning equipment to high-efficiency models, and installing energysaving equipment. We are also focusing on environmental education forour 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.

Installation of energy-saving equipment(solar power generation)

Organizational structure for addressing climate change

Reduction of CO2 emissions associated with business activities

Effective use of resources

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.

 eduction of waterRutilization• 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.

The JVCKENWOOD Group recognizes that addressing climate change is one of the important issues in its sustainability
promotion strategy. The Company appointed a director in charge of sustainability under the supervision of the Boardof Directors, and established the Sustainability Management Office in April 2018 to establish a system for quickly
implementing sustainability promotion strategies including those related to climate change.
The Sustainability Management Office is responsible for coordinating the implementation of company-wide climatechange initiatives and progress management. It works with relevant divisions to periodically review material issues andkey 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.

Risks and opportunities related to climate change
The JVCKENWOOD Group will analyze risks and opportunities related to climate change, with regard to multiple scenarios
including the “1.5°C scenario” in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
In response to the physical risk of severe natural disasters and the transition risk arising from various regulations introduced
to mitigate damage, we plan to expand product development in a manner that contributes to decarbonization, reduce
costs associated with energy and resource conservation, and study opportunities that will contribute to further growth.

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

38 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 39

Foundation to Support Sustainable Growth

Environment
Approach to initiatives in reducing CO2 emissions

Scopes 1, 2 of CO2 emissions (FY 2019-FY 2021)

At the JVCKENWOOD Group, we are gathering relevant
information, including the Task Force on Climate-related
Financial Disclosures (TCFD) and science-based targets(SBT), and engaging in in-depth discussions on setting
targets in addressing climate change. We will continue to
implement measures as necessary to ensure the appropriate
setting and management of targets as well as disclosure of
information.

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
The JVCKENWOOD Group’s CO2 emissions (Scope 1 + 2)
were reduced to 36,411 tons in FY 2021 (down 18.6% fromFY 2019).

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.

Environmental conservation and management

Coverage: All Group companies in Japan and certain overseas companies

Scopes 1, 2 & 3 of CO2 emissions (FY 2020)

FY 2020545,163t

Preservation of biodiversity
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 are needed. Ever since
the Aichi Targets were adopted at COP 10 in 2010, the international framework for biodiversity conservation has been strengthened inJapan and overseas, with consideration given to the Post-2020 Global Biodiversity Framework at COP 15. Under such circumstances,
the role of corporations has become increasingly important, and as a result, business activities that take biodiversity into consideration
are required along with systematic efforts for biodiversity conservation.
Against this backdrop, the JVCKENWOOD Group has identified preservation of biodiversity as one of the four important environmental
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 and services, and contribute to therealization of a sustainable society and the preservation of biodiversity.

Development of environmentally friendly products
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 inwaste reduction, diligently disassembling and sorting waste generated in the production processes and reusing it within
the company or turning it into valuables. As a result, the Group achieved a global recycling rate of 92% in FY 2021.
Going forward, we will continue to further reduce waste generation and promote recycling to achieve zero emissions byexpanding efforts for 3R* management.

The JVCKENWOOD Group is not only taking environmental considerations into account in its products, but also actively working
with other companies. For example, we are working with Nissan Motor Co., Ltd. and 4R Energy Corporation to recycle usedrechargeable batteries from the Nissan Leaf electric vehicle for use in portable power stations. We are responsible for designingand developing products optimized for reusing used batteries as well as safety, utilizing the technology and expertise wehave accumulated in the development ofDevelopment of portable power stations using recycled batteries
in-vehicle equipment such as car navigation
Design of portablesystems and dashcams, as well as portable
power sources andpower stations. In order to preserve our
product development
precious natural environment for the future,
we will work toward realizing a low-carbon
and sustainable society by utilizing recycled
Nissan Leaf (November 2012 model)
batteries from electric vehicles.

*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.

40 JVCKENWOOD Integrated Report

In the Media Service Sector, we have beenworking to reduce the amount of plastic
used in headphone product packaging, andin FY 2021, we completely eliminated the useof plastic packaging materials in all models
developed. We will continue to reduce theamount of plastic used in other products to
reduce our environmental impact.

Reuse of recycled
batteries

Supply ofbattery cells
Development forsecondary use

JVCKENWOOD Integrated Report 41

Foundation to Support Sustainable GrowthSociety
Our approach to society

set a goal of increasing the ratio of women in executive positions to 8.0% by FY 2024. As a result of the implementation of rankspecific development training for female employees and training for executives, the ratio of female executives rose from 2.1%
in FY 2015 to 5.6% by the end of FY 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.

Ratio of female executives

The logo depicts people with adiversity of values joining hands
and heading to the future together.
With an image people of differing
races, genders, and values coming
together in mind, we designed
the logo using a broad range ofcolors, 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/220215_jvckenwood_human_rights_policy_en.pdf（%）

Diversity logo markAchievement

9

Ratio of women in all executives

rights of our employees and stakeholders and promoting diversity and

8.0%

6

3

Plan

5.0%

5.6%

0
FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

FY 2020 is calculated as of Apr. 1 of the following fiscal year.

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,” the JVCKENWOOD
Group established the JVCKENWOOD Health Policy Statement as a message from top management. We promote efforts to create
a “workplace environment that enables all employees to stay healthy and motivated to work” and work to create safe and healthy
workplaces so that each and every employee can demonstrate their full potential.
For safety, the Safety and Health Committee patrols workplaces to prevent occupational accidents. For health, we are working on
mental health training for managers, health promotion activities in collaboration with the Health Insurance Association, measuresfor long working hours and employee care, and on strengthening regular and secondary health checkups. We have been recognized
for these initiatives under Certified Health & Productivity Management Outstanding Organizations for the fifth consecutive year
since 2018. In 2022, we were selected for the “White 500” for the fourth time.

Product quality & safety
Promoting sustainable 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 compliance with the codeof 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 the implementation of theguidelines. In March 2022, we revised the detailed questions on the Self-Assessment Questionnaire (SAQ) for suppliers. This SAQ
was sent to all suppliers to collect responses. Issues identified in the responses will be considered for improvement in the future.

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 that theorganization will be revitalized and performance will be improved by realizing an organization that empowers employees withdiverse 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 this effort, as shown in the figure below, we have

42 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 group-wide efforts that include resolving quality issues throughcollaboration between business units and relevant departments as well
as taking expert approaches to product quality improvement at every
step, from design 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 their experience and position, and regularly provides education andtraining in line with those guidelines. We are also striving to reduce productsafety risks and promptly implement improvements in collaboration with theHead Office’s product safety management department and other relevant Group discussion during quality training
in-house departments.

JVCKENWOOD Integrated Report 43

Foundation to Support Sustainable Growth

Governance

Message from Audit and Supervisory Board Members

Message from External Directors
Contributing to the enhancement of corporate value through diverse perspectives and new ideas.
Audit and Supervisory Board Member

Ma s a k i I m a i

We will apply the knowledge and careers we have developed over many years to our management duties.
Chairman of the Board, Nomination andRemuneration Advisory Committee member

Chairman of Nomination andRemuneration Advisory Committee

Nomination andRemuneration Advisory Committee member

Shinjiro Iwata

Yuji H am asaki

H iro m i O nitsuka

It’s awareness that plays a major rolenext top management candidates and corporate officers, and to this end,

Each company has its own unique climate and culture, and internal opinions

we routinely provide many opportunities for interviews with corporate

are often bound by a single way of thinking. As an External Director of theofficers and executive candidates. “Succession” is when and what kind of

Board, it is important to use the knowledge and experience gained throughmanagement structure is brought to the table.

diverse activities to provide advice from a wide range of perspectives within

It is important to create a system of corporate officer remuneration that

the Company. We believe that providing awareness from various angles is aallows everyone to work hard and to reach lofty goals. For this reason, we

major role of an External Director of the Board.

have established a brand new remuneration structure that includes STI and

In order to do this, it is necessary to understand the Company’s history,

LTI* in the Company. We will review the system after one year and makeactual situation, and external environment. And we believe that thefurther improvements.

Company provides ample opportunities for information-sharing, such as

The main role of the Nomination and Remuneration Advisory Committee

off-site meetings, for this purpose. Since 2016, the Company has had an

is to create a system and structure that can flexibly respond to changes

External Director serving as chairman of the Board of Directors, with the aim

over time and within individuals, and we intend to play a major role in theof holding "fairly open Board of Directors meetings" and we believe thatsustainable growth of the Company.

open and frank discussions are improving the effectiveness of the Board of
Directors.

Toward further growth
The Company has been vigorously promoting "Change for Growth" as

How to create a management structure thatcan flexibly respond to the changing times

set forth in the Medium-Term Management Plan VISION 2023 and we

Companies vary greatly depending on who runs the company, but thestrengthening our earnings base, which we have defined as “Change.”

Nomination and Remuneration Advisory Committee plays an important

On the other hand, the challenge is how to identify the seeds of our nextrole in the appointment, dismissal, and evaluation of corporate officers,"Growth" and concentrate resources on them. This is not an easy task, but

including managers.

we believe we have sufficient potential.

There are three major components to the nomination process: composition,

In a turbulent industrial world, companies that are profitable but do notnomination, and succession. “Composition,” considers what kind ofoperate soundly will be weeded out. First, we will ensure we achieve VISION

skill map will be needed for the future direction of management in

2023, and then we will play a unique role in overseeing various activities

terms of what the staffing structure of the Board of Directors should be.

with a sense of urgency in order to reach even greater goals.

“Nomination” is the process of determining who will be selected as the

44 JVCKENWOOD Integrated Report

External Audit & Supervisory Board Member

Katsumi Saito

Since the General Meeting of Shareholders was held in June 2021, theCompany has increased the ratio of External Audit and Supervisory Board
Members by decreasing the number of Audit and Supervisory Board
Members from two to one from within the Company, and increasing
the number of External Audit & Supervisory Board Members from twoto three. Each of the members of the External Audit & Supervisory Board
has a very different background and skill set, and many different opinionsfrom diverse perspectives have emerged regarding the challenges andrisks the Company faces as identified through audits. The effect ofincreasing the ratio of External Audit & Supervisory Board Members was
immediately apparent.
Each year we conduct inspections of approximately 40 departments andgroup companies, both internal and external. During an on-site inspection,
we try to together accurate information on employees’ achievements
and job performance, as well as on site-specific issues and concerns. Thisis because we believe that company-wide governance functions only
when it is accompanied by the discipline of individual organizations andthe actions of employees that support day-to-day corporate activities.
By understanding the actual state of governance through these on-site
inspections, we audit whether there are any violations in the duty of care

External Audit & Supervisory Board Member

Katsumi Kurihara

External Audit & Supervisory Board Member

Tetsuya Fujioka

of Directors of the Board and Executive Officers, and recommend what
the Board of Directors should strengthen and improve. In addition, weare always conscious of enhancing cooperation with External Directors,
the Internal Audit Division, and Accounting Auditors.
Confirming the levels of understanding and progress of each division in
relation to the Medium-Term Management Plan VISION 2023 disclosed
in May 2021, is one of the most important points of an audit, and weare always mindful of the balance between the progress of short-term
performance and medium-term growth. Another important item toaudit is the level of preparedness for the various risks surrounding theCompany.
While we recognize that there are no major risks that could shake ourcredibility at this time, a series of unexpected events have occurred,
including the COVID-19 pandemic, supply chain disruptions, andgeopolitical risks such as the situation in Ukraine. The success stories
and solutions of the past no longer apply. Companies need new ideas
and the ability to implement them quickly. We also want to help
enhance corporate value through a taking a variety of perspectives andimplementing new ideas, without adhering to conventional approaches.

Comments from an Investor
We would like to see a continuation of active
dialogue in management.
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Stewardship Development Department
Senior Stewardship Officer

Hi ro k i S a w a s h i m a

are making steady progress in restructuring our business portfolio and*STI: Short Term Incentive
LTI: Long Term Incentive

As investors place greater emphasis on corporate sustainability, they
are demanding dialogue and disclosure from a more multifaceted
perspective than ever before, including ESGs and non-financial
information. They are also demanding that companies do a betterjob at communicating messages related to the company’s purpose,
vision, and materiality, such as what company management
values and what its objectives are. It is also becoming increasingly
important to have diversity and objectivity, and a transparent
governance structure to discuss and promote this.
Ever since management was integrated in 2008, the Company has
continued to restructure its business portfolio, and I believe thatthe Board of Directors is also becoming more diverse. Throughdialogue with President and CEO Eguchi and External Directors, I
am also aware of the challenges facing your governance structure
and the progress being made in addressing them. On the other
hand, reform is still in progress and there are still issues (including
information disclosure) that need to be improved.
Just as the business environment is changing, so too are theinterests and desires of investors. I hope that you will continue
to actively engage in dialogue with investors and incorporate any
insights you gain through this dialogue into management.

JVCKENWOOD Integrated Report 45

Foundation to Support Sustainable Growth

Corporate Governance

3. Matters concerning the Audit & Supervisory Board

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. For this reason, we make it a basic policy to enhance
our corporate governance through the establishment of a structure that calls for the separation ofmanagement from the execution of businesses, the appointment of External Directors and External
Audit & Supervisory Board Members, and the improvement of the function of checking by establishingan Internal Audit Division, thereby strengthening the internal control system on a Group-wide basis.
Overview of the corporate governance system
1. 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 24, 2022, Mr. Shinjiro Iwata, 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.

Corporate Governance Structure

Audit and Supervisory Board

Four Audit and Supervisory Board Members

Accounting Auditor

ReportAppointment
and removal

Advisory

Nine Directors of the Board

ReportShare and collaborate on audit information
Supervision, appointment/removal

Executive Committee

Report

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 an External 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, theChief 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 the three 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 that is responsible
for new business development, 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 andregions.Furthermore, each Executive Officer is responsible for the Chief Financial Officer (CFO), Chief Technology Officer (CTO), Chief Information
Security Officer (CISO), and administrative divisions to support the Chief Executive Officer (CEO) in the execution of his/her responsibilities.

Skill Matrix

ReportNomination and Remuneration
Advisory Committee
Four Members

Internal
Governance GroupInternal governanceCorporate
Audit Office

Operational audit

President and Chief
Executive Officer (CEO)Compliance Committee
Enterprise Risk
Management Conference

ReportPL Conference

Environmental Conference

14 Executive Officers (six officers concurrently serve on Board of Directors)

Shinjiro Iwata

Audit

Control/orderInternal governanceOperational audit

Business operational organization (including affiliated companies)

Independent

●

●

●

●

●

●

●

Male

Executive

Male

Executive

4 years ICT*, business growth strategy

Male

Executive

Akira Suzuki

Male

Executive

Naokazu Kurihara

Male

Executive

Yoshio Sonoda

Male

Executive

and accounting,
5 years Financebusiness management
development, supply
2 years Technology
chain
6 years Human resources, human resource
in total development, risk management
property,
3 years Intellectual
research and development
Corporate management,
External Independent 3 years
technology development

Yuji Hamasaki

Male

Hiromi Onitsuka

Female Non- executive External

Non- executive

Independent

SkillsCorporate
Overseas business Manufacturing andmanagement International business technology, R&D●

Masao Nomura
Masatoshi Miyamoto

Nomination andRemuneration
Advisory Committee

management,
5 years Corporate
telecommunications

Shoichiro Eguchi

1 year Business management, diversity

IT
Digital
●

●
●

●
●

●
●

●

Chairman

●

●

●

●
●

●
●

Finance and
M&As

●
●

●
●
●

Audit & Supervisory Board Member
Years ofservice

Name

Katsumi Saito
Katsumi Kurihara
Tetsuya Fujioka

46 JVCKENWOOD Integrated Report

Male Non- executive External
Chairman of the Board

Expected areas ofexpertise

11 years
Corporate strategy, marketingin total

Masaki Imai

Accounting audit

Years ofservice

Name

Board of Directors
ReportJVCKENWOOD 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 Chief Executive Officer (CEO) was added as a member of the Nomination and Remuneration Advisory Committee in order toshare accurate internal 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.

Director of the Board

Appointment
and removal

Audit/
report4. Matters concerning the Nomination and Remuneration Advisory Committee

In order to solve JVCKENWOOD's management challenges and enhance medium- to long-term corporate value , and to ensure diversity
and balance on the Board of Directors, the areas of expertise and skills expected of the management team are as follows.

General Meeting of Shareholders
Appointment
and removal

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 Board of Directors’ meetings and other important meetings, aswell as holding Audit & Supervisory Board meetings, auditing the execution of Directors’ duties, the business execution of the entire Group andcorporate accounting. The Audit & Supervisory Board holds a meeting once a month, and any extra meetings as needed from time to time.

Male

Full-time

Expected areas ofexpertise

audits,2 years Management
production management

Corporate planning,
Male Part- time External Independent 2 years
legal, risk management
Technical development,
Male Part- time External Independent 2 years
quality control
Finance and accounting,
Male Part- time External Independent 1 year
accounting audits*: Information and communication technology

SkillsAudit &
Supervisory Corporate
Overseas business Manufacturing andBoardmanagement International business technology, R&D●●

IT
Digital●Chairman

●

●

●

●
●

Finance and
M&As

●
●

●
●

JVCKENWOOD Integrated Report 47

Foundation to Support Sustainable Growth

Corporate GovernanceActions to improve the effectiveness of the Board of Directors
1. Overview of evaluation on effectiveness

Issues found upon evaluation on effectiveness of the Board of Directors

Upon evaluation on effectiveness of the Board of Directors carried out in January 2022, 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 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.

Training for
officers

Practical and indepth discussion• L ack of deliberation
time due to an• Secure time for practicalenvironment that allows
and in-depth discussion
active discussion• Identified topics to be
discussed
Clarified issues and points
to be discussed

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, as shown in the table on the p.49.

Diversity

Corporate officer’s remuneration
IssuesHow 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).

(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• Short-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.
• The base amount for calculation of the short-term incentive shall be a certain amount calculated based on theamount of monthly remuneration.
• In 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• Adopted a stock issuance trust system.
• Shares are delivered upon resignation of the officer in principle.
• Shares (points) are granted according to position and other factors.

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.”• Commitment todiversity needs to be
improved• Commitment todiversity needs to be
improved

FY 2021(the 7th evaluation)

 onducted two trainingCsessions during the fiscal
year.
*Trends in Corporate
Governance Reform*SDGs and ESG investment

Measuresin and after FY 2022

• Discuss and select a
training program for theyear at meetings of theBoard of Directors

 onducted seven off-site meetingsC
during the fiscal year.
• Reduction and simplification ofreporting items to ensure moretime for deliberation.
• Revision of the criteria for agenda
items, including the scope ofAuthorization for execution.

• Review and refinementof items to be discussed
and reported• Provide information for
discussion• Utilization of Off-Site
Meetings―• Train successors withconsideration for diversity

Training of successors•E stablished a succession
plan for Directors
and train prospective
Directors
Established and implement
a set of plans for evaluation,
discovery, recruitment anddevelopment of humanresources

Conducted interviews
with management officers
and Executive Officers
at the Nomination andRemuneration Advisory
Committee and consider
successors

Conducted interviews
with management officers
and Executive Officers
at the Nomination andRemuneration Advisory
Committee and consider
successors• Report and share thestatus of activities of
the Nomination andRemuneration Advisory
Committee periodically

Evaluation of investment projects

Conducted a PMI* reportof investment projects
periodicallyConducted a PMI reportof investment projects
periodicallyConducted a PMI reportof investment projects
periodicallyConduct a report ofinvestment projects
periodically―

PDCA of mid-term
management plan andenhancement of discussion
from mid- to long-term
perspectives

Outline of the new corporate officer’s remuneration system
Remuneration Structure

FY 2020(the 6th evaluation)P rovided opportunities totrain officers
Conducted two training
sessions during the fiscal*Introduction of training
year
programs*On the Medium-Term*Distribution of training
Management Plan
materials*On the succession plan
• A comprehensive andsystematic training structureneeded to be established

Persons subject to evaluation Directors and Audit & Supervisory Board Members
Evaluation method

FY 2019(the 5th evaluation)

Fiscal Year

New issues―

Identify topics to be
discussed• PDCA cycle for a MediumTerm Management Plan
• Risk management• Business portfolio• IR/SR, etc.

*Abbreviation of Post-Merger Integration*1: Abbreviation of Short-Term Incentive.
*2: Abbreviation of Long-Term Incentive.

48 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 49

Foundation to Support Sustainable Growth

Directors of the Board, Audit & Supervisory Board Members,
and Executive Officers (as of Jul.1, 2022)
Directors of the Board

Shinjiro
Iwata

Audit & Supervisory Board Members

Shoichiro
Eguchi

Masao
NomuraTitle
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

TitleRepresentative Director of the Board, Senior Managing Executive Officer,
COO Mobility & Telematics Services Sector, In Charge of Business Reform

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. 2016	
Chairman of the Board (External Director), Benesse
Holdings, Inc.
Jun. 2017	External Director of JVCKENWOOD Corporation

CareerSenior Vice President & Executive Officer of Kenwood
Jun. 2003	Corporation
Apr. 2004	General Manager, Car Electronics Commercial Business
Division of Kenwood Corporation, President and Directorof Kenwood Electronics Europe B.V.
Representative Director of the Board, Executive Vice
Oct. 2011	
President
Jun. 2012	
President and Representative Director, Executive Officer,
CEO

CareerDirector of the Board of Benelux N.V.(subsidiary ofJul. 1998	Sojitz Corporation)
Apr. 2002	President and Representative Director, ITX E-Globaledge
Corporation
Apr. 2017	Executive Officer, General Executive of OEM Business
Division, Automotive Sector
Jun. 2021	Representative Director of the Board, Senior Managing
Executive Officer, COO Mobility & Telematics Services
Sector

Masaki Imai

Katsumi Saito

Katsumi Kurihara

Tetsuya Fujioka

Title
Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

Title
External Audit & Supervisory Board Member

CareerOct. 2002 General Executive of Consolidated
Management Division of Kenwood Corporation /Jun. 2010 Director of the Board, General Manager
of Corporate Planning Department, General
Executive of Entertainment Software Division ofVictor Company of Japan, Limited / Jul. 2012 SeniorVice President & Executive Officer, General Executiveof Corporate Planning & Production Strategy
Planning Division, General Executive of the Human
Resources Management Division / Apr. 2019 Directorof the Board, Executive Vice President, Head of
Administrative Division, COO EMEA (Europe, Middle
East, and Africa), General Manager of Internal
Governance Office, of JVCKENWOOD Corporation

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. 2006 General Manager of Development
Process Innovation Center, MFP Business Groupof Ricoh Company, Ltd. / Jun. 2012 Managing
Executive Officer, General Manager of Process
Innovation Division / Jun. 2016 Audit &Supervisory Board Members of Ricoh Company,
Ltd. / Jun. 2020 External Audit & Supervisory
Board Member of JVCKENWOOD Corporation

CareerApr. 2002 General Manager of Accounting
Department and Sales Accounting Departmentof NEC Solutions, Ltd. / Apr. 2010 General
Manager, Corporate Finance Division of NEC
Corporation / Jun. 2014 Audit & Supervisory of
NEC Corporation / Jun. 2021 External Audit &Supervisory Board Member of JVCKENWOOD
Corporation

Concurrent Post
External Director of the Board of CHUCHIKU

Concurrent Post
Outside Director of NIPPON ANTENNA Co.,Ltd.,
Part-time Engineering Adviser of CMK
Corporation

Executive Officers

Masatoshi
Miyamoto

Title
Representative Director of the Board, Senior Managing Executive
Officer, CFO
CareerJun. 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
Jun. 2021	Representative Director of the Board, Senior Managing
Executive Officer, CFO

YoshioSonodaAkira
Suzuki

Title
Director of the Board, Senior Managing Executive Officer, COO
Public Service Sector, In Charge of Supply Chain Management(SCM) Reform
CareerOct. 2006	Chief Engineer of Communications Business Division of
Kenwood Corporation
Jun. 2009	
Director of the Board, General Executive and Chief
Engineer of Radio System Business Division of Kenwood
Corporation
Jun. 2013	Managing Executive Officer In Charge of IT, General
Executive of Communications Business Division
Director of the Board, Senior Managing Executive
Jun. 2020	
Officer, COO Public Service Sector, General Manager ofManagement Base Reform Office

Yuji
HamasakiNaokazu
Kurihara

Title
Director of the Board, Managing Executive Officer, Head of Administrative
Division, COO EMEA
CareerOct. 2002 President of JVC Company of America
Board of Director, Managing Executive Officer,
Oct. 2011	Assistant to Chief Operating Officer (COO) of Home
& Mobile Business Division Group (Imaging Business,
Projector Business, Overseas Business)
Apr. 2017	Managing Executive Officer, COO Americas
Director of the Board, Managing Executive Officer, Head ofJun. 2021	Administrative Division, COO EMEA (Europe, Middle East,
and Africa)

Shinichi Takada

Akihiko Terada

Kazuyoshi Hayashi

Osamu Muraoka

Title
Managing Executive Officer, General Executiveof Aftermarket Business Division, Mobility &Telematics Services Sector, Assistant to COO
Mobility & Telematics Services Sector

Title
Managing Executive Officer, COO China

Title
Executive Officer, General Manager ofCorporate Strategy Department, In Chargeof Corporate Communication Department, In
Charge of New Business Development

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

Career
Dec. 2004 General Manager of Camcorder
Category, AV&Multimedia Company of Victor
Company of Japan, Limited / Apr. 2018
Executive Officer, COO Media Service Sector,
General Executive of Media Business Division /Apr. 2022 Executive Officer, General Manager
of Corporate Strategy Department

CareerJun. 2012 Operating Officer, General Executive of
Business Solution Division / Apr. 2019 Executive
Officer, General Executive of Communications
Systems Division, Public Service Sector / Apr.
2020 Executive Officer, COO Americas / Apr.
2022 Executive Officer, COO Americas, COO
APAC (Asia Pacific), In Charge of Strengthening
International Business, General Executive ofOverseas Business Marketing Division

Career
Feb. 2013 General Executive of Car Electronics
Business Group / Apr. 2017 Executive Officer,
COO Asia Oceania / Apr. 2019 Managing
Executive Officer, Assistant to Head of
Administrative Division / Apr. 2022 Managing
Executive Officer, General Executive of
Aftermarket Business Division, Mobility &Telematics Services Sector, Assistant to COO
Mobility & Telematics Services Sector

CareerJul. 1997 Director of the Board, Administrative
Manager, Accounting Manager of Nippon
Computer Systems Corp. / Jun. 2001 Director of
the Board, Financial Controller, Shinwa Co., Ltd.
/ Apr. 2018 Executive Officer, COO China / Apr.
2022 Managing Executive Officer, COO China

HiromiOnitsuka
Naoki Sekiya

Hatsuhiko Iwasaki

Katsuya Sato

Hiroaki Kamata

Title
Director of the Board, Managing Executive Officer, Chief Technology
Officer (CTO), Chief Information Security Officer (CISO)

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

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

Title
Executive Officer, General Executive of Domestic
Business Marketing Division

Career
General Manager of Technology Strategy, Car
Jul. 2014	Electronics Segment
Apr. 2018	
Executive Officer, General Executive, Automotive
Engineering & Design DivisionJun. 2019 
Director of the Board, Executive Officer, Chief
Technology Officer (CTO), General Executive ofAutomotive Engineering & Design Division
Apr. 2022	
Director of the Board, Managing Executive Officer,
Chief Technology Officer (CTO), Chief Information
Security Officer (CISO)

CareerExecutive 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.
Apr. 2010	Executive Vice President 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
Full-time Audit and Supervisory Board Member ofJun. 2012	Yahoo Japan Corporation (Independent Auditor)
Jun. 2018	Audit & Supervisory Board Member of eBook Initiative
Japan Co., Ltd.
Jun. 2021 External Director of JVCKENWOOD Corporation

CareerJul. 2014 General Manager of Domestic Sales
Department, Consumer Business Management
Operation, Car Electronics Segment / Apr.
2020 Executive Officer, General Executive ofAutomotive Aftermarket Business Division / Apr.
2022 Executive Officer, General Executive ofDomestic Business Marketing Division

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

Title
Executive, Officer, General Executive ofCommunications Systems Division, PublicService Sector, Assistant to COO Public Service
SectorTitle
Executive Officer General Executive of Telematics
Service Division, Mobility & Telematics Services
Sector, General Manager of DX Business
Development Department

CareerApr. 2015 Director of EF Johnson Technologies,
Inc. / Jul. 2018 Senior General Manager ofEngineering & Design Division, Communications
Systems Division / Apr. 2020 General Executiveof Communications Systems Division, PublicService Sector / Apr. 2021 Executive Officer,
General Executive of Communications Systems
Division, Public Service Sector

CareerMay. 2011 Director of Sojitz Indonesia / Nov.
2017 Joined JVCKENWOOD Corporation, Senior
Manager of Solution Development Department/ Apr. 2019 General Executive of DX Business
Division / Apr. 2022 Executive Officer, General
Executive of Telematics Service Division, Mobility& Telematics Services Sector, General Manager
of DX Business Development Department

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

Concurrent Post
Audit & Supervisory Board Member of Yahoo Japan Corporation,
Outside Director (Independent Director) of the Board of Tokyo
Electron Device Limited

CareerJun. 2013 General Manager Engineering
Operation, Audio Division / Oct. 2015 President of
Kenwood Home Electronics Corporation (currently
JVCKENWOOD Corporation) / Apr. 2020 General
Executive of Media Business Division / Apr. 2021
Executive Officer, COO Media Service Sector

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

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 toalso 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 Legal & Compliance 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 sites of
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 to prevent theidentified risks from materializing and minimize their impact or damage, and, through collaboration between those businesssites and the management, resolve those issues systematically. Particularly, the management takes the initiative in addressing
risks that are likely to affect the Group entirely.

We also place importance on ensuring the transparency of our corporate activities, and will continue to disclose information,
including donations to specific political parties and organizations. (Political donations made in FY 2021: 0 yen)

Specific initiatives to promote compliance
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
Compliance training is principally the responsibility of the Legal & Compliance Office, which endeavors under the CEO’s guidance tothoroughly inform all executives and employees, including those of 41 group companies in Japan and overseas, about compliancematters, in order to construct a robust compliance structure. New employees are provided with training in face-to-face sessions whileother 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 other executives. Training is conducted on topics covered by the Compliance
Code of Conduct and other related regulations, as well as on prohibiting facilitation payments and the bribery of foreign officials,
preventing corruption (such as giving or accepting excessive gifts) and corporate scandals, and on the whistle-blowing system. In
the event of any violation of the Compliance Code of Conduct, corruption, or any other violation of corporate ethics, measures are
required to be taken to prevent recurrence of similar incidents promptly. In FY 2021, there were no internal violations.
Anti-corruption initiatives
The JVCKENWOOD Group clearly states in the JVCKENWOOD Group Compliance Code of Conduct and its internal rules that itprohibits all forms of bribery and corruption and that no illegal or inappropriate means shall be employed that may be used toinfluence 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, are reported to the Board of Directors.
Internal whistle-blowing system
The JVCKENWOOD Group has two whistleblower systems (a JVCKENWOOD Helpline (“Helpline”) established in the Internal Control
Office and an auditing informer system established in the Audit & Supervisory Board Office) for use by all executives and employees(including contract employees) anonymously. The Helpline consists a telephone helpline and an online reporting system, operated by
an external whistleblowing service company, which acts as a third-party contact (services are available in Japanese, English, Chinese,and Korean).
Any concerns about corporate ethics in general and compliance, such as human rights violations, harassment, and all forms ofcorruption (embezzlement, bribery, etc.) are directly reported to the Helpline based on Internal Reporting Rules, and corrective
measures will be taken under the leadership of the Compliance Committee. Misconduct by officers is reported directly to theauditing informer system and appropriate action is taken. Both systems employ a dedicated communications system run by selected
personnel to protect the whistleblower’s name and maintain the confidentiality of the report.
We will continue using both systems to detect and rectify compliance violations (behaviors that deviate from social norms) as earlyas possible.
Compliance awareness survey
In order to check the level of compliance awareness in the JVCKENWOOD Group, we have been conducting a compliance awarenesssurvey among employees of domestic Group companies every year since 2017 when conducting e-learning. 3,758 employees
responded to the survey conducted in 2021. Ever since the survey was launched, employee interest in compliance has increased
every year.
52 JVCKENWOOD Integrated Report

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

Risk management system
The Group has established a system to identify any and all risks related to its corporate activities accurately, to minimize
their impact and damage, and to convert those risks into opportunities. An officer has been appointed to manage andpromote risk management from a company-wide perspective. The Risk Management Division serves as the secretariat,
and each business site actively and regularly identifies risks that it is likely to face and takes measures (including gaining aprior understanding of these risks and promptly responding to them materializing) under the initiative of managers in eachbusiness sector, group company, and Administrative Division based on our risk management process.

Risk management process• We conduct annual risk surveillance that covers all divisions of the Group. We important risks faced in each businessdivision and region; define them as "Business Site Risks"; evaluate these risks based on their degree of impact, frequencyof occurrence, and status of response; and formulate and implement measures to deal with the risks. In addition, a cycle ofmonitoring and improving the progress of measures will be implemented in each department.
• The Enterprise Risk Management Conference is organized by the Chief Executive Officer (CEO) and chaired by the Risk

Management Officer, and consists of division heads at our Head Office and company executives in charge of their respective
全世界の各職場が実施するリスクサーベイランスプロセス
business
divisions appointed by the chairperson. Based on the "Business Site 経営が主導するリスクマネジメント
Risks" and management and business issues
identified in each division and region, the Enterprise Risk Management Conferenceis used to define risk issues as"global
全社リスク管理会議
事務局
オートモーティブ分野 パブリックサービス分野 メディアサービス分野
important risks to be addressed with the highest priority," taking into
consideration
the degree of impact on management,
議 長：
リスク管理担当役員
リスク
構成員：議長が指名した本社部門長および事業分野担当役員
マネジメント室
国内外関係会社
urgency, and 本社コーポレート
the status of incidents.
Then, measures to resolve theserisks
are formulated, and a Risk Management
Officer isappointed in charge forpromoting response from a company-wide perspective at the management level.
リスクサーベイランス
重要リスクの抽出プロセスの実施

全社的な視点での取り組みが必要なリスク課題を抽出する。

• The person in charge of promoting response implements an improvement cycle by incorporating measures for "Globally
リスク

リスク

中間モニタ

最終

課題解決施策の実施 会議構成員の中から課題解決担当を決め、リソースリスクのリスクの into each business division and region, in order to achieve business results for the consolidated fiscal year
Important
Risks"を確保して施策を立案・計画・実施し、全社的視点で職場の取り組みを支援
対応計画
対応
リング
レビュー
洗い出し
評価
策定
の実施
の実施
の実施
して、その進捗と成果を「全社リスク管理会議」で共有する。
and to monitor
progress.
■リスク関連規程の整備 ■事業継続計画（BCP）の策定と定着訓練■リスクマネジメント関連事項の審議 ■危機管理上の重要な事項の審議■異常値報告と対応 ■海外安全管理体制整備

リスクの再評価

Image of risk management structure
Risk Management Led by Management

Risk Surveillance Process
Mobility & Telematics
Services sector

Public Service sector

Corporate Division,
Head OfficeMedia Service sector

Domestic andoverseas affiliates

Implementation of the Risk
Surveillance Process
Risk
identification

Risk
assessment

Formulationof risk
response
measuresRisk
response
implementation

Reassessment of risks

The Enterprise Risk Management Conference
Chairman: Risk Management Oﬃcer
Members: General Executives and Executive Oﬃcers incharge of the sector, selected by the Chairman
Extraction ofsignificant risks

Interimmonitoring

Final review

Secretariat
Risk
Management
OfficeExtract risks that need to be addressed from a company-wide perspective.

Implementation of measures Select persons in charge of solving problems from among the members offor solving problems
the Enterprise Risk Management Conference.
They secure resources and develop, plan and implement measures for solving problems, support theactivities at the business sites from a company-wide perspective, and share the progress and results ofsuch activities at the Enterprise Risk Management Conference.
■ Formulation of risk-related regulations■ Formulation of BCP (Business Continuity Plan) and training to make BCP established■ Deliberation of matters related to risk management■ Deliberation of important matters concerning risk management■ Responses to reports of abnormalities■ Maintenance of overseas safety management systems

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 Corporation

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
1976 Launched the HR-3300, the first VHS recorder2014	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 subsidiary1986	Launched the GR-C7, the world’s smallest and lightest
VHS-C video camera

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

Corporation, aiming to expand the Professional Systems
Business

JVCKENWOOD Corporation
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 Medium-Term Management Plan VISION
2023 with fiscal 2021 as the starting year

ChangeGrowth1992	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 highspeed response. This concept has
been carried over to the present day.

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

Sustainability management/
Evolution of ESG
2022	Moved from the First Section of the Tokyo Stockenables high resolution and clear recording pixels andentered into the dashcam market
The first-generation of dashcam
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 and360-degree shooting models

Kenwood Corporation (KENWOOD)

1957	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

2016	
Launched the ”Gazefider” NP-100, an eye-tracking
system developed for use in various research fields,
equipped with unique eye measurement technology

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 Connected-type dashcams adopted by Mitsui Sumitomo Insurance
Company, Limited and Aioi Nissay Dowa Insurance Co., Ltd. for use
with auto insurance products for vehicles equipped with dashcams
Telematics solutions for auto 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 a dataservice business by utilizing connectedtype dashcams

2019	Commercialized a security service for drivers that uses

2013 Launched the DLA-VS4800, the world’s first mass-production

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

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

2021 Provided connected-type dashcams to Mitsui Sumitomo2014	Launched the NX-5000 series, the NEXEDGE series ofmulti-mode digital radio systems compliant with boththe NXDN™ and P25 standards

Insurance Company, Limited, for its ”Mimamoru” auto
insurance product for vehicles equipped with dashcams(Premium Dashcam Type)

Exchange to the Prime Market due to a revision of
the Tokyo Stock Exchange's market classification

54 JVCKENWOOD Integrated Report

JVCKENWOOD Integrated Report 55

Other Data

Other Data

Facilities (Japan) (as of July 1, 2022)

Facilities (Overseas) (as of July 1, 2022)

Business Centers and R&D Facilities
Names

Manufacturing Companies

Locations

Main R&D

Names

Locations

Main Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

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

JVCKENWOOD Electronics Malaysia Sdn. Bhd.

Malaysia

Communications equipment

JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.

Thailand

Mobility & telematics equipment

Hachioji Business Center

Hachioji, Tokyo

Mobility & telematics equipment

PT JVCKENWOOD Electronics Indonesia

Indonesia

Mobility & telematics equipment

Shanghai Kenwood Electronics Co., Ltd.

China

Mobility & telematics equipment

Hakusan Business Center

Yokohama, Kanagawa

Radio communication devices, video surveillance equipment, etc.

Kurihama Business Center

Yokosuka, Kanagawa

D-ILA devices, laser diodes, etc.

Names

Locations

Main Products

Names

Locations

Names

Locations

Kurihama Business Center

Yokosuka, Kanagawa

Optical components and projectors

JVCKENWOOD USA Corporation

U.S.A.

JVCKENWOOD U.K. Limited

U.K.

Yokosuka Business Center

Yokosuka, Kanagawa

Projectors, medical cartridges, CD and DVD discs (prerecorded)

JVCKENWOOD Canada Inc.

CanadaJVCKENWOOD Deutschland GmbHGermany

Communications equipment and professional products

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.

Major Production Bases and Production Companies

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Sales & Marketing Companies: Americas

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

JVCKENWOOD Nagano Corporation

Ina, Nagano

Mobility & telematics equipment

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

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

Names

Locations

Main Operations

Names

Locations

Names

Locations

Yokosuka, Kanagawa

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

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVCKENWOOD Hong Kong Limited

China

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

JVCKENWOOD Victor Entertainment
Corporation

Shibuya-ku, Tokyo

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

JVCKENWOOD (Thailand) Co., Ltd.

ThailandIndonesia

JVCKENWOOD Video Tech Corporation

Shibuya-ku, Tokyo

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

PT JVCKENWOOD Indonesia
JVCKENWOOD Australia Pty. Ltd.

Australia

JVCKENWOOD Public & Industrial Systems
Corporation

Yokohama, Kanagawa

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

JVCKENWOOD Service Corporation

Yokosuka, Kanagawa

After-sales services of audio and imaging equipment

Names

Locations

Main Operations

JVCKENWOOD Partners Corporation

Yokohama, Kanagawa

Insurance agency business, travel agency business, construction business, product sales
business, business related to employee benefits, general affairs, human resources,
accounting, etc.

EF Johnson Technologies, Inc.

U.S.A.

Development, manufacture and sales of professional radio systems

ASK Industries S.p.A.

Italy

Development, manufacture, and sales of mobility & telematics equipment

JVCKENWOOD Engineering Corporation

Yokohama, Kanagawa

Development and design of software and hardware

Radio Activity S.r.l.

Italy

Development and sales of professional radio systems

Rein Medical GmbHGermany

Development, sales and implementation of operating room imaging solutions

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

Sales & Marketing Companies: APAC (Asia Pacific)

Major Affiliated Companies
JVCKENWOOD Creative Media Corporation

JVCKENWOOD Design Corporation

Head Office &Yokohama Business Center

56 JVCKENWOOD Integrated Report

Setagaya-ku, Tokyo

Planning and production of designs

Sales & Marketing Companies: China

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 JVCKENWOOD 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
（million yen）

FYE 3/2013
JGAAP

Financial DataFYE 3/2014
JGAAP

FYE 3/2015
JGAAP

FYE 3/2016
JGAAP

FYE 3/2017
IFRS *1

FYE 3/2018
IFRS

FYE 3/2019
IFRS

FYE 3/2020
IFRS

FYE 3/2021
IFRS

FYE 3/2022
IFRS

P/L, cash flows, others (fiscal year)
306,580

316,343

285,010292,195

297,890

300,687

307,627

291,304

273,609

282,088

Operating profit (loss)

9,761

4,592

6,757

4,494

△128

6,937

7,263

4,080

4,893

9,054

Profit (loss) before tax

3,203△2,438

6,816

4,148

△1,259

5,940

6,401

2,877

4,533

8,515

Profit (loss) attributable to owners of the parent company

1,243△6,450

4,795

3,401

△3,114

2,389

3,847

954

2,154

5,873

Capital investment

7,082

4,243

5,385

9,267

9,069

8,287

8,700

11,837

10,26812,354

Depreciation expenses *2

10,758

11,315

11,002

12,235

15,417

16,862

17,794

20,19919,316

17,120Research and development expenses

21,35021,454

21,591

20,713

19,282

17,89018,30917,445

15,72015,871

RevenueCash flows from operating activities

9,771

14,943

8,575

12,258

19,624

18,37920,98321,64235,8297,059

Cash flows from investing activities△13,356△10,658△3,857△8,395△17,690△14,835△25,768△19,675△11,804△9,804

Free cash flows△3,585

4,284

4,717

3,862

1,934

3,544

△4,785

1,966

24,024△2,744

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

8,479△1,665△5,342△11,273

246,735

267,380

279,041

256,334

241,696

239,933

250,617249,660

264,326

280,807

57,76055,19155,07742,76440,79837,162

40,84439,93359,644

48,707

Total equity

67,51860,224

79,762

57,56545,23653,78865,321

59,99968,52383,961Equity attributable to owners of the parent company

65,89352,122

72,32052,32439,551

50,63462,00956,48564,64579,495Retained earnings

24,965

17,821

22,421

25,128△16,611

2,913

6,634

5,547

7,574

13,34686,467

81,66473,61869,20270,996

67,84771,31274,60575,587

69,83828,706

26,473

18,541

26,43730,19830,68530,46834,671

15,942

21,131

8.97△46.52

34.58

24.51

△22.42

17.20

25.00

5.82

13.14

35.89

475.19375.89521.57376.57284.65364.42378.24344.55394.33486.26

5.00

-

5.00

5.00

5.00

6.00

6.00

5.00

5.00

6.00

55.7%

-

14.5%

20.4%

-

34.9%

24.0 %

85.9%

38.0%

16.7%

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

2.0%-10.9%

7.7%

5.5%

-7.5%

5.3%

6.8%

1.6%

3.6%

8.1%

Return on assets before tax (ROA) (%)

0.5%

-2.5%

1.8%

1.3%

-1.3%

1.0%

1.6%

0.4%

0.8%

2.2%

B/S (end of fiscal year)
Total assets
Cash and cash equivalents at end of fiscal year

Interest-bearing debt

*3

*4

Net debt *5

Per share information
Basic earnings (loss) per share (yen)Equity attributable to owners of the parent company per share(yen)Dividend (yen) Base date basis
Payout ratio (%)*6

Management indicators

Operating profit margin (%)

3.2%

1.5%

2.4%

1.5%

-0.0%

2.3%

2.4%

1.4%

1.8%

3.2%

Ratio of equity attributable to owners of the parent company (%)

26.7%

19.5%

25.9%

20.4%

16.4%

21.1%

24.7%

22.6%

24.5%

28.3%

EBITDA (million yen) *7

16,683

11,591

19,78920,794

22,27625,322

26,07625,53427,57927,503

EBITDA margin (％)

5.4%

3.7%

6.9%

7.1%

7.5%

8.4%

8.5%

8.8%

10.1%

9.7%

5.2

7.0

3.7

3.3

3.2

2.7

2.7

2.9

2.7

2.5

54.9%

58.2%

62.8%

65.5%

59.0%

56.5%

55.5%

53.0%

54.5%

54.9%

Number of employees (non-consolidated) (persons)

4,241

3,798

3,708

3,630

2,987

3,055

3,109

3,300

3,292

3,179

Average number of temporary employees(non-consolidated) (persons)

52

55

48

71

73

95

148

0

0

0

Number of employees (consolidated) (persons)

12,781

19,791

17,66817,88418,051

17,801

16,93917,623

16,956

16,585

Average number of temporary employees(consolidated) (persons)

4,625

3,324

3,097

3,156

3,706

3,397

3,107

1,550

1,892

2,053

75

58

EBITDA Liability multiplier (times)
Overseas sales ratio (%)

Non-Financial Data

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

2.6

3.1

60

52

51

50

48

45

38

36

329

262

304

305

285

256

204

193

2.5

2.2

2.0

2.1

1.9

2.0

1.4

1.5

*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 ending March 2018.
*2: Depreciation expense in JGAAP includes amortization of goodwill*3: Cash and deposits in the consolidated balance sheet in JGAAP

58 JVCKENWOOD Integrated Report*4: Interest-bearing debt does not include lease liabilities*5: Calculation 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.
*6: 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.
*7: Profit (loss) before tax + Interest expense + Depreciation expense + Impairment loss

JVCKENWOOD Integrated Report 59

Other Data

Company Profile/Stock Information(as of March 31, 2022)

Company Profile

Shareholder Composition

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

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

October 1, 2008

Capital13,645 million yen

Number of Employees(Consolidated)

16,585

Total Assets(Consolidated)

280,807 million yen

Equity (Consolidated)

83,961 million yen

Fiscal Year-End

March 31

Head Office

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

Record Date

Securities
companies
4.47%

Shareholder
composition
ratio

Financial
institution
24.47%

Number ofstocks held

Ratio ofshareholding

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

24,230,200

14.77%

Custody Bank of Japan, Ltd. (Trust Account)

9,551,000

5.82%

INTERACTIVE BROKERS LLC

4,222,825

2.57%

NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY

2,832,300

1.73%

THE BANK OF NEW YORK MELLON 140040

2,482,000

1.51%

JP MORGAN CHASE BANK 385781

2,145,056

1.31%

2,075,000

1.27%

ENDO Shiro

1,990,000

1.21%

The Dai-ichi Life Insurance Company, Limited

1,852,268

1.13%

STATE STREET BANK AND TRUST COMPANY 505103

1,696,900

1.03%

Treasury stock Name
0.04%

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/

Stock Information
Ordinary General
Meeting of Shareholders

Japanesecompanies
1.87%

Major Shareholders (Top 10)

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

ACCT BP2S DUBLIN CLIENTS-AIFM

Foreign companies
25.16%
Individuals and others
43.99%

Note: The ratio of capital contribution is calculated after deducting treasury stock (60,900 shares) from the total
number of issued shares.

Trends in Total Shareholder Return
FYE 3/’17

FYE 3/’18

FYE 3/’19

FYE 3/’20

FYE 3/’21

FYE 3/’22

Share Price (JPY)

290

355

268

195

220

178

Dividends (JPY)

5

6

6

5

5

6

Accumulated Dividends (JPY)

6

12

17

22

28

Share Price + Accumulated Dividends (JPY)

361

280

212

242

206

Total Shareholder Return (%)

124.5%

96.6%

73.1%

83.4%

71.0%

Share price at the end of each fiscal year + Accumulated amount of dividends per share from four fiscal years prior to the current fiscal year to each fiscal year

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

Stock Exchange Listing

Prime Market of the Tokyo Stock Exchange

Security Code6632

Trading Unit

100 shares

Total Number of Shares
Issued164,000,201 shares (including 515,100 treasury shares*)Total Number of
Shareholders

52,723

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

Editorial policy
The JVCKENWOOD Integrated Report explains our vision, strategies in each business sector, and our initiatives contributing to a sustainable
society, focusing on our Medium-Term Management Plan VISION2023 which was formulated in May 2021.

Notes on the outlook for the future*Number of shares held in treasury: 60,900 shares
Number of shares held by the trust related to stock-based compensation: 454,200 shares

60 JVCKENWOOD Integrated ReportStatements 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, and actual results may differ substantially from those discussed in forwardlooking statements. These statements are current as of the date of publication of this report. The Company is under no obligation to update andannounce any forward-looking statements in the event that economic or market conditions affect results.

JVCKENWOOD Integrated Report 61

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

Public and Investor Relations Group
Corporate Communication Department