Company Profile Section

JVCKENWOOD Report
2018

JVCKENWOOD Report 2018 Company Profile Section

● Group Overview/Feature Stories

Overview of the JVCKENWOOD Group/
Financial Highlights

2

An Interview with Our CEO and COO

4Feature Stories 1.
Transform into a Customer Value Creator

8

Feature Stories 2.
Evolve as a Technology Based Company

10

Feature Stories 3.
Contribute to a Sustainable Society Through Our Business12● Business Overview

Business Overview of the JVCKENWOOD Group

Contents

Automotive Sector
Public Service Sector
Media Service Sector
Initiatives to Increase the Brand Value● Our Sustainability Eﬀorts

Social and Environmental Initiatives (CSR)
Diversity
Human Resource Management
Corporate Governance● About Us

Management Team
Corporate Proﬁle/Stock Information
Network (Global)
Network (Japan)
Corporate History

14
16
18
20
22
24
28
30
32
36
37
38
39
40

Media Service Sector

Major Business AreasMedia Business,
Entertainment Business

Public Service Sector

Major Business Areas

Communications Systems Business,
Professional Systems Business,
Healthcare Business

Automotive Sector

Major Business Areas
Aftermarket Business,
OEM Business

GroupOverview

An Interview with Our CEO and COO

Management
Message

Customer
Value Creator

Technology
Based Company

President Eguchi, what do you hope to actively
pursue in the future?

Takao Tsuji｜Shoichiro Eguchi
Representative Director of the Board, Chairman,
Chief Executive Officer (CEO)

Since the launch of the new management structure in June
2016, we have been moving forward toward new growthunder the banner of JK 3.0 (the third era of JVCKENWOOD).
While upholding our corporate visions of “Creating
excitement and peace of mind for the people of the world,”
we are devoting constant efforts not only to enhancing
customer satisfaction but also to delivering an added elementof “WOW” or surprise.
JVCKENWOOD has launched a new management structure,under which Takao Tsuji, previously Representative Director of
the Board, President, Chief Executive Officer (CEO) was
appointed Representative Director of the Board, Chairman,
CEO, and Shoichiro Eguchi, previously Representative Directorof the Board, Executive Vice President was appointed
Representative Director of the Board, President, Chief
Operating Officer (COO), effective April 1, 2018.
The Chairman and the President will join hands and work
together to have the corporate structure of our company
evolve and to move it forward to JK 3.1, the next generationof JK 3.0. In addition, we will accelerate the development ofour company to keep up with the times, and even go slightly
ahead of them.

To start, tell us about the new system for working
together and the background to this system.
Tsuji: As President, CEO for roughly two years, I visited many
domestic and overseas group bases as well as customers allover the world. However, there are limits to what one person
can do, and there are still many places I have not yet visited.
You gain an understanding of actual conditions by visiting
sites, and there are many employees who feel more motivated
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JVCKENWOOD Report 2018

Representative Director of the Board, President,
Chief Operating Officer (COO)with the visits. Although there are also likely those who wouldfind the visits annoying, too (laughs). So, in the future, I want
the two of us to share the load and visit as many places as
possible, both inside and outside of the company.
Eguchi: We are growing as a company. In the future, we will
have to actively increase external activities in order to steer ourcompany toward expansion and growth. However, deep
involvement in one sector alone can take quite some time,and it is extremely difficult for one person to cover all work
alone. Many business sectors require knowledge, including inparticular in the fields of professional-use products that CEO
Tsuji specializes in. I think joining hands and working together
has a deeper meaning, including these things.
Tsuji: At first, we thought about dividing our work with thissystem of joining hands and working together. But, COO
Eguchi and I share very similar values and ways of thinking, so
we have a very smooth shared sense of things. However, ourmethods for problem solving do differ. Even with the PublicService Sector’s Communications Systems Business, a current
issue, COO Eguchi and I have completely different views on
how to reorganize it. But, we are able to build a relationshipwhere we complement each other without causing conflict.
Eguchi: There is a saying “Two heads are better than one.”
Each of us has parts that differ from each other, but our aimof improving the company is the same. By making the main
goal progress while complementing each other, synergistic
effects will be generated naturally and unanticipatedchemistry may develop.

Eguchi: In particular, I hope to accomplish in JK 3.1 what we
could not complete in JK 3.0. We have made corporate
culture reforms and organizational reforms significantly since
JK 2.0 at the time of our management integration (2008). Ourinternal corporate culture has also changed dramatically. On
this occasion, however, we will fully promote these unfinishedbusiness reforms. And I think that this coming year is a critical
period for us in terms of building a firm foundation for 2020,
t he f inal year of our Vision 2020 m id- t o long- t er mmanagement plan.

Reviewing the Vision 2020 mid- to long-term
management plan, what exactly do you aim for?
Eguchi: Mid- to long-term management plans have beenformulated many times since our integration. Unfortunately,
however, we fell short of each goal in the past, numericallyspeaking, and lost the credibility with the market. The Vision is
not a dream but rather a commitment. As a manager
responsible for the business, I hope to change the corporate
culture, making it more active. This Vision 2020 we haveannounced is a commitment to the market. To achieve thisVision, first we have to change our way of thinking.

The objective of the Vision 2020 sets forth a targetof 10% return on equity (ROE). What are the key
points to achieving this target?

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

the Automotive Sector, the Public Service Sector, and theMedia Service Sector—make up our resources and areas ofbusiness. Together, these three sectors are extremely strong.
For that reason, rather than focusing on one business sector, I
believe that it is better to use the three sectors to support one
another so that we can build a more stable business structure
as a company.
Tsuji: Talking about future business development continuingfrom existing businesses, we might mention the healthcare
market, which we are already making efforts, including the
medical image display systems. Globally, the healthcare
market—including drug discovery, medical care, and others—
has already become larger than the automotive market.
Against this backdrop, while we have only achieved no morethan an amount of a drop in the ocean, we hope tosuccessfully utilize our intellectual property to grow ourhealthcare business into a key driver of earnings from 2025
onwards.
Eguchi: With our efforts in our next-generation business in
the Automotive Sector, we believe that our strengths are
optical and video-related, specifically camera-related fields.
And we believe that there are areas where these strengths canstill be used further in new sectors, including the healthcare
market, and we expect that we can differentiate ourselvesfrom the competition here.

Eguchi: Our numerical targets feature those for each businesssector as well as those for the entire Group. However, intoday's changing business environment, individual businesses
and their respective markets fluctuate differently per theirunique cycles: every three months, every six months, every
year. Therefore, we will not change the targets for the entire
Group, but we do believe that detailed plans and allocations
in each business sector should be reviewed on a case-by-casebasis. Of course, all employees at all levels must work together
towards these targets. And rather than sticking to targets ofindividual projects for three years as we did in the past, I think
we need to adjust our trajectories more frequently as wemove forward. If performance in one business sector falters,
another can cover for it. Alternatively, there is the idea ofstarting new businesses. Looking back on the past, there weretimes when, numerically, results deviated considerably fromthe targets and no reviews of business structures wereconducted. Reflecting on this fact, we therefore plan tomaintain the end goal while moving forward in a flexible
manner.

Is the Automotive Sector—which has grownsignificantly—positioned to drive profitability inthe future?
Eguchi: We expect that the Automotive Sector has thepotential to continue to be a major driving force. However,
the market sometimes fluctuates significantly. Three sectors—
JVCKENWOOD Report 20185

GroupOverview

Reviewing the Vision 2020, we have added aprinciple on developing as a technology based
company that utilizes intellectual property. What isyour aim?
Tsuji: Intellectual property is very important for companies likeours. There are times for offense and times for defense. With
intellectual property, we can be on the offensive. And withintellectual property, we can defend even if competitors
attack. In the past, there was a time in which profits andpayments due to intellectual property were each in the tens ofbillions of yen or more. Selling our intellectual property while
using other companies' intellectual property, we freely used
intellectual property to create great results. Although thetimes have changed, we must further expand intellectual
property in order to create a future for our company.
Eguchi: Using intellectual property is a clear proof that thecompany’ s business is moving forward and expanding. So, notusing intellectual property is to say that the business isshrinking.
Tsuji: Becoming a technology based company is an importantpart of our thinking. With intellectual property, othercompanies' collaborations can also be advanced in a favorable
manner. And on the contrary, always having others provide
intellectual property means you will not make a profit even if
you collaborate with other companies. We intend to actively
create new business areas and so on using our own
intellectual property rights by daring to introduce ourselves asa technology based company.

The company’s management principles and action
guidelines have been revised. What are the ideas
behind the revisions?
Tsuji: To achieve the corporate vision of “Creating excitement
and peace of mind for the people of the world,” we mustmove forward with a consciousness shared at all times by all
employees at all levels. We do not aim to be the world's
largest in scale, but we want to be a company that delivers anadded element of “WOW” or surprise to customers and theworld.
Eguchi: I believe that management principles and action
guidel ines s hould change with the times. Changing
management principles and action guidelines with JK 3.1 isnatural when seen from the viewpoint that only the fittest
survive in business.
Tsuji: Globally, new waves are reaching a variety of sectors.
When these waves reach us, I want JVCKENWOOD to be notin the middle of the waves but rather out in front withproactive approaches. When the world changes significantly,
the leading-edge always grows. Even if you make the same
effort, going against the flow will mean little headway gained.
But if on the waves with a strong tailwind, a little effort means
great strides forward. I want to focus on areas with favorable
tailwinds.
Management Principles- Transform into a customer value creator- Evolve as a technology based company- Contribute to a sustainable society through ourbusiness

Management
Message

Customer
Value Creator

Technology
Based Company

Eguchi: We have conducted a variety of activities contributing
to communities both in Japan and abroad. In addition to these
activities contributing to society, we contribute to a safe andsecure motorized society through Gazefinder, a gaze tracking
system designed to assist early evaluations of social
developments, as well as dashcams and in-car cameras. We
believe that many of JVCKENWOOD’s businesses fall in the
category of contributing to the world through business. I thinkthat we can take pride in this.
Tsuji: I believe there are a left brain and a right brain in
business. In other words, there are two areas: the right brain,sensitive and featuring tacit knowledge, and the left brain,featuring explicit knowledge. Our businesses do quite well in
the realm of the senses. This is especially true in theentertainment business.
Eguchi: I feel that we have more businesses based on thesenses.
Tsuji: In addition to the ability to express visually, sensitivity interms of ergonomics determines whether something is goodor bad. This is not only true in music content and audio
equipment but also in video equipment. While the insides ofprofessional cameras are digital, the products themselves areevaluated in terms of aspects that are very much analog—howeasy something it is to focus, how the turn of the aperture fits
in one’s hand, and so on. I believe the pursuit of a world of
the sense where quantifying such things is difficult andcreating new areas of business is a means for Japanesemanufacturers to survive in the world.

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

It is easy to think that digitization allows anyone
to make products easily, but you mean that thishas created a sizable gap in the actual products.
Tsuji: Products and services are produced from experienceand knowledge of a company, accumulated over a long
period of time.
Eguchi: There are tangible and intangible parts in corporate
value. Tangible parts can be quantitatively measured, butintangible parts are difficult to be differentiated andrelativized. However, various elements such as design,
craftsmanship, tradition, and employee morale lie in suchaspects. Of course, these parts do not appear on the balance
sheet at all. These intangible parts that cannot be visualized
are very important, and I think much of JVCKENWOOD’s work
uses them. There are still many such technologies,
experiences, and areas of knowledge that have not yet
resulted in profits. Depending on how we utilize them, I thinkthese have the huge potential to change the world
significantly like the VHS.
Tsuji: And while timing can be key, if we work in the directionof contributing to the world from the viewpoint ofEnvironmental, Social and Governance (ESG), I think that thiswill surely lead to profits as well. Riding the trends of theworld, we hope to move forward with the spirit of staying
slightly ahead, be it a step, half step, or even one inch
(laughs).
Eguchi: We appreciate your continued understanding andsupport going forward.

Action Guidelines- Reﬁne our senses regularly to create products andservices that oﬀer a moving experience- Provide solutions that make a real diﬀerence throughinnovation and collaboration- Strive for sincere, responsible corporate behavior as
our commitment to compliance

These management principles state “Contribute toa sustainable society through our business.” Thewebsite, as well, makes a great deal of the conceptof sustainability. What ideas is this based on?
Tsuji: This is something that I have always thought. Rather
than a philanthropic social service, I believe we should
contribute to society through the business itself, and that thisis something to aim toward. This is also a global trend, as seenin the SDGs (Sustainable Development Goals) adopted by theUnited Nations.

6

JVCKENWOOD Report 2018

JVCKENWOOD Report 20187

Concrete examples●Contributing to driver safety, a secure and comfortable
driving experience, and the operation of vehicles
DashcamBy connecting its in-car device technologies with imaging andoptical technologies, JVCKENWOOD realizes high-function,
high-reliability, and high-definition recording, and delivers
dashcams with built-in driver assistance and other functions
that contribute to driver safety and a secure and comfortable
driving experience.
Developing a taxi dispatch system
JVCKENWOOD has started operational collaborations for thedevelopment and introduction of a next-generation IoT-basedtaxi dispatch system with Sanwa Koutsu, which is considering
introducing an IP-based taxi dispatch system to enhancecustomer services.
By fusing JVCKENWOOD s technologies and know-how on
car-mounted equipment and professional radio devices andSanwa Koutsu s knowledge and experience of the taxi
industry and vehicles, we will work toward developing anext-generation IoT-based taxi dispatch system thatprovides a safe and comfortable driving experience andsafe operation of vehicles not only for customers but also
for taxi drivers.

●Solving social issues
Gazeﬁnder : A gaze tracking system
Gazeﬁnder is a gaze tracking system capable of visualizing
the eye-gaze patterns of the subject of an experiment byapplying our unique gaze tracking technology. Through joint
research with research institutions and universities using
Gazeﬁnder, we aim to contribute to the early detection ofdevelopmental disorders and other symptoms.

●Providing new experience
EXOFIELD: An out-of-head localization soundﬁeld processing technology
JVCKENWOOD s unique EXOFIELD out-of-head localization
sound ﬁeld processing technology, which enables listeners using
headphones to experience a real sound ﬁeld eﬀect like the one
delivered by loudspeakers, oﬀers new listening experience.

Management Strategy Underpinned by Business Strategy and Sustainability Initiatives
We will extract eight priority goals and ﬁve relevant goals associated with our businesses from among the 17 goalsof SDGs*1, and work to achieve these goals through Society 5.0.
*1. SDGs (Sustainable Development Goals): 17 global goals adopted at the United Nations Summit to be achieved by 2030.

Peace of mind, comfort,
and social issues
Peace of mind, comfort,
convenience, and social issues

Ⅰ. "Social" Issue
Promote as part of Economy Issue covered in Issue V

Peace of mind, low birthrates,
and longevity issues
Low birthrates andlongevity issues

Ⅱ. "Labor" Issue

Ⅲ. "Environment" Issue

Safety, peace of mind,
and social issues
Global warming issues

Ⅳ. "Quality" Issue

Ⅴ. "Economy" Issue

Ⅵ. "Safety" Issue

Ⅶ. "Governance" Issue

Ⅷ. "Value Creation" Issue*2. Society 5.0: A new human-centered society that (balances economic advancement with the resolution of social problems by a system that) highly
integrates cyberspace and physical space. (The 5th Science and Technology Basic Plan endorsed by a Cabinet Decision)

Illustrative image of the next-generation car interior

™

Initiatives to Increase the Brand Value

Mario Mola
(The winner of 2016 and 2017
ITU World Triathlon Championship titles)

CES 2018(The world s largest electronics trade)GroupOverview

Management
Message

Customer
Value Creator

Technology
Based Company

Contribution to
Sustainability

Our Sustainability
EﬀortsBusiness
Overview

About Us

Social and Environmental Initiatives (CSR)
Environmental Vision

Environmental Management

We will contribute to society as an eco-promoting company that actively focuses on reducing our environmental impacts.

The JVCKENWOOD Group promotes company-wide environmental management through activities such as introducing theenvironmental conference and the environmental management system and providing environmental education, for the purpose ofdeveloping and producing products as well as engaging in business activities with no environmental impacts.

Environmental Policies
To preserve the global environment as well as resources and prevent pollution, the JVCKENWOOD Group will carry out its corporate
management while considering the environment by making continuous improvements to all of our business activities, our productdevelopment, and our services with full awareness of our environmental impacts.

1. Prevent global warming through promotion of the reduction of CO 2 emissions throughout a product’s
lifecycle, including business activities, by developing technologies and products that reduce
environmental impacts.
2. Use limited global resources effectively to create a sustainable society by reducing the resources we use
within the framework of 3R activities and progressively using eco-friendly materials.
3. Manage chemical substances that affect the world’s environment and biosphere, continue to reduce
consumption, and switch to eco-safe materials.
4. Recognize the effects on biodiversity of all business activities, product development, and services tocomprehensively reduce our environmental impacts in harmony with the natural environment.
5. Comply with environmental legislation and other requirements with which we agree.
6. Educate employees on the environment to cultivate greater environmental awareness.

◆JVCKENWOOD Environmental Conference
The JVCKENWOOD Group has established a system for promoting environmental management activities, in which
the JVCKENWOOD Environmental Conference, the highest decision-making body chaired by the President, holds
regular meetings attended by the person in charge of environmental promotion and permanent members twicea year, to lay out the framework for proposing and considering the environmental issues the Group needs toaddress. The JVCKENWOOD Group conducts global environmental conservation activities based on policies andmeasures determined by the JVCKENWOOD Environmental Conference.
◆Maintaining ISO14001 Certification
JVCKENWOOD has obtained ISO14001 integrated
certification as the JVCKENWOOD Group, including
its domestic business centers and production bases,
p ro d u c t i o n c o m p a n i e s , a n d a ff i l i a t e d c o m p a n i e s , a n d
individual certification at overseas production companies.
In FY2017, we expanded the scope of activities that
focused on reducing our environmental impacts toi n c o r p o r a t e “ t h e e c o n o m y, ” “ t h e e n v i ro n m e n t , ” a n d“ s o c i e t y, ” t h e e n v i ro n m e n t a l a s p e c t s t h a t a re l i n k e d
d i re c t l y t o s u s t a i n a b i l i t y m a n a g e m e n t , a n d d e v e l o p e d
ISO14001:2015. We plan to obtain ISO14001:2015
certification for the Group’s entire operations in Japanand overseas by August 2018.

Internal andexternal issues

Status of organization
Scope of application of the environmental
management system (EMS)

Needs and expectationsof the interested parties

P

Planning

Support and

A Improvement Leadership implementation D
Performance
evaluation

C
Intended outcome of the EMS

New environmental management system◆Sustainability Procurement (Green Procurement)

Eco Promotion Plan 2020
The JVCKENWOOD Group has established four action items based on the Environmental Vision and the Environmental Policies, andwill work to accomplish the goals of the Eco Promotion Plan 2020.
(1) Promotion of Energy Saving(2) 3R Activities(3) Appropriate Management of Chemical Substances● Saving energy in business centers and● Developing products designed for● Promoting green procurement

production base
● Developing energy-saving products
using Life Cycle Assessment (LCA)- Reducing power consumption in bothuse and standby modes- Making products increasingly compact
and lightweight (reduction oftransportation energy)● Developing elemental technologies that
contribute to energy saving

recycling- Adopting ecological and recyclable
materials- Company-wide rollout of 3R design
methods (increased decomposability,
resource conservation, and more)● Reducing and recycling waste- Maintaining zero waste emissions at
Japanese production and business bases- Achieving zero waste emissions at
global production bases- Improving green levels of business
partners● Reducing harmful substances in
products- Encouraging switching to safer
substitutes● Company-wide promotion ofalternatives to harmful substances andtheir appropriate handling

We c o n s i d e r i t n e c e s s a r y t o c o n d u c t p ro c u re m e n t a c t i v i t i e s i n o u r s u p p l ychain, while considering the requirements of the inter national community,
such as in considering the environment and controlling conflict minerals at
business partners, respecting human rights, and promoting legal complianceand fair transactions, in order to realize a sustainable society.
As an initiative that considers the environment and other factors, theJ V C K E N W O O D G ro u p h a s f o r m u l a t e d t h e G re e n P ro c u re m e n t G u i d e l i n e s ,a n d i m p l e m e n t s g re e n p ro c u re m e n t f o r a d o p t i n g a n d p ro c u r i n g p ro d u c t s
and components with low environmental impacts on a priority basis byconducting surveys of chemical substances in procured materials and green
procurement assessments with the understanding and cooperation of business
partners. We, along with the many partners who make up our supply chain,
are endeavoring to establish transparent relationships of mutual trust,coexistence, and co-prosperity, based on observing laws and social norms, andpromote activities to appropriately manage chemical substances.

Green Procurement Guidelines◆Initiatives for Biodiversity
To conserve biodiversity and realize the sustainable use of ecosystem services, it is important for everybody torecognize the value of the ecosystem and reflect that understanding in their own decision-making and behavior.
The JVCKENWOOD Group will promote corporate activities that consider the natural environment, with fullre c o g n i t i o n t h a t a l l o f i t s b u s i n e s s a c t i v i t i e s , p ro d u c t d e v e l o p m e n t , a n d s e r v i c e s a ff e c t b i o d i v e r s i t y a n d b ycontinuously enhancing its activities to conserve resources and prevent pollution.

(4) Maintenance of Biodiversity
Recognizing the effects on biodiversity of all business activities, product development, and services to comprehensively reduce
our environmental impacts in harmony with the natural environment.
● Reducing CO2 emissions by promoting energy

savings- Impact of global warming on the ecosystemsof flora and fauna

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JVCKENWOOD Report 2018

● Promoting 3R activities- Impacts of exploiting mineral
resources on the ecosystem● Appropriate management of chemical

substances- Impacts of air pollution and soil
contamination on the ecosystem

JVCKENWOOD Report 201825

GroupOverview◆Activities for Raising Environmental AwarenessTechnology
Based Company

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

The JVCKENWOOD Group, as a good corporate citizen, is proactively engaged in social contribution activities through thevoluntary participation of individual employees in local activities with the aim of achieving coexistence and development with local
communities.
◆Initiatives for the Next Generation
We will make efforts to foster the next generation and co-create value for the next generation, with the aim of supporting the soundgrowth of children, who will be leaders in the future, and contributing to the development of a sustainable society.

Travelling environmental classroom at an elementary
school (Japan)●Social Studies Plant Tour/Work Experience (Japan)
The JVCKENWOOD Group provides plant tours and work
experience for children to give them opportunities to developa heightened sensitivity through the experience of learning by
themselves and to draw out the infinite potential of individual
children.

●Acceptance Program for University Students (Malaysia)
The Group’s Malaysia plant accepted engineering studentsof the University of Southampton Malaysia Campus, andexchanged the latest technologies and knowledge of 3D
printers, robotic machines and more with them.

◆Sports and Culture/Arts Support Activities◆Initiatives for the Local Community

The JVCKENWOOD Group is proactively promoting sports
and regional/social contribution activities.

The JVCKENWOOD Group conducts activities to strengthen
relationships of cooperation and trust with local people.

●Providing T-Shirts with the Kenwood Logo (Italy)
JVCKENWOOD ITALIA S.p.A., a JVCKENWOOD Group
company, provided T- shirts with the Kenwood logo to a
Milan-based amateur soccer team called CSI.

●Halloween Costume and Cubicle Decoration Event (the US)
Zetron, Inc., a JVCKENWOOD Group company, annuallyholds the Halloween Costume and Cubicle Decoration event.
In 2017, the company raised donations for the Children’s
Miracle Network Hospitals.

Salt Licks for Elephant Project and Small Dam-Building Project with participation by employees as volunteers (Thailand)

The JVCKENWOOD Group’s Environmental Activities (FY2017)◆Initiatives for Environmental Beautification
We periodically carry out environmental beautification activities to increase participation in environmental conservation activities anddeepen understanding.
●Clean-up Activities (Japan)
The JVCKENWOOD Group conducts cleanup activities periodically in cooperation with
its employees and their family members andlocal companies. We conduct environmental
beautification activities, in which we clean
up areas surrounding our business centers,
as well as pick up, separate, and carry trashin the river nearby to encourage participants
to consider the significance and importanceof separating trash.

Customer
Value Creator

The JVCKENWOOD Group’s Social Contribution Activities (FY2017)

To design products and conduct business and production activities withlow environmental impacts, the JVCKENWOOD Group acknowledges theimpact on the environment caused in the course of performing regular
work assignments by all its employees, and disseminates the roles andresponsibilities of each employee, as well as information that is usefulfor daily business operations. We proactively organize environmental
improvement events, held at domestic production bases and affiliatedcompanies on an ongoing basis, and conduct travelling environmental
classrooms at local schools and after-school day-care clubs. In addition,
details of such activities are made available to all the employees via theIntranet to raise their environmental awareness.

Environmental internship (Japan)

Management
Message

Participated in the Tenryu River basin environment picnic and conducted joint environmental training for new
employees with local companies (Japan)◆Initiatives for Creating Environmental Value
We conduct product development and research activities toward solving social issues.
●Exhibiting Forest Notes Scope VR at Maker Faire Tokyo 2017 (Japan)
JVCKENWOOD Design, Corp., a JVCKENWOOD Group company, conducts
research and development activities on the theme of people’s five senses andsensibilities. At Maker Faire Tokyo 2017, an international craftsmanship fair,the company demonstrated Forest Notes Scope VR, a VR device like a field
scope for viewing a virtual world, crafted by a 3D printer, as a proposal for use
in environmental and biodiversity education at schools and nature centers andother experiential facilities.

◆Major Social Contribution Activities by the JVCKENWOOD Group●Established a Charitable Giving Matching Program (the US)

Poster of FN Scope VR

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JVCKENWOOD Report 2018

● Participated in the Milano Loves You Run 2017 as a

● Became a Business Friend of the Dutch Cancer Society (DCS) tosponsor (Italy)

contribute to research on cancer (the Netherlands)●Supported ATA EUROPEAN CAMP sports event (Spain)● As a TeenTech supporter, provided learning opportunities forstudents (the UK)●Leased a projector for an outdoor movie show free of charge (Italy)●Maintained and repaired furniture and fixtures at schools

to contribute to improving the learning environment(Indonesia)●Donated prizes to the Baht at Ban-Hnong-Ta-Kong Child
Development Center (Thailand)●Participated in blood donation drives (China, Thailand,
the US, and Japan)●Akagawa estuary clean-up activities in Yamagata (Japan)
JVCKENWOOD Report 201827

GroupOverview

Management
Message

Customer
Value Creator

Technology
Based Company

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

Diversity
Diversity & Inclusion

Initiatives to Support Diverse Working Styles

JVCKENWOOD is committed to promoting diversity and inclusion to show respect to people from diverse backgrounds and accept
various ways of thinking and opinions. We believe that when people with a diverse range of ideas and values respect and inspire
each other, the company can generate innovative ideas and meet a variety of customer needs around the globe. To this end,
JVCKENWOOD holds in-house awareness programs and recruits and appoints diverse personnel.

This logo represents people with diverse
values joining hands and moving in
unison toward the future. A wide rangeof colors, including JVCKENWOOD’s
corporate color of blue, is adopted toexpress the union of diverse races,
genders, and values.

Diversity Logo

Action Plan
As described in the following chart, JVCKENWOOD has set up an action plan to promote diversity. We are currently in Phase 2,“Promoting cultivation measures and global expansion,” which involves giving training to female employees at each grade with theobjective of cultivating future candidates for management positions. Training is also being provided for managers of female
employees. A goal of increasing the ratio of women executives to 5.0% in FY2020 has been set, and as a result of the above
initiatives, that ratio increased from 2.1% in FY2015 to 3.4% as of April 2018. Also, in March 2018, the Ministry of Health, Labourand Welfare awarded JVCKENWOOD with Level 3 Eruboshi certification under the Act on Promotion of Women’s Participation andAdvancement in the Workplace, which is the highest level of the certification for female-friendly workplaces.

JVCKENWOOD supports diverse working styles to enable employees with diverse backgrounds to take pleasure in their work.

●Supporting employees to balance childcare and family care with work
In addition to providing a range of support programs on how to balance childcare and family care with work, JVCKENWOOD
holds seminars for employees to help them successfully cope with work, child rearing and nursing care. The number of male
employees taking childcare leave is also on the rise.

Comments from male employees who have taken childcare leave (from our website)
Takashi Himukashi (Group 3, Development Department, Engineering & Design Division,Media Business Division, Media Service Sector)
Taking childcare leave meant that I was able to be with my family for two wholemonths after the birth of my child. This enabled me to experience for myself just how
difficult and important those first few months after birth are for both mother andchild. Of course, work is important, but those months watching over my baby’s
growth were a very precious time. Our children are small for only a very short time,
so I was glad that I took the bold move to take childcare leave.
Mikihiko Yamada (Information Systems Group, Corporate Planning Division,
JVCKENWOOD Victor Entertainment Corporation)
Right from when I first joined the company, I had decided that I would take childcare
leave when my children came along. The company offers childcare leave, so I think it
would be a waste not to take it. You can definitely have a valuable experience when
there are still not many people who take this leave. Even after the childcare leave,
child rearing does not end, and there are many situations in which you need to taketime off. I think that the childcare leave period is a good time to lay the foundations
for being able to take time off work smoothly.
Takashi Sugaya (Diversity Promotion Office, General Administration Department)
Through my experiences from childcare leave, I learned just how difficult it is tobalance child rearing and household chores, so I have become much more aware of
my time and actions to go home as early as possible. I think that the time we spent
together as a family of three made our bond stronger. Also, because I took childcare
leave, I have more opportunities to talk about my child at work, so I feel that it has
made communication easier. I believe that childcare leave is a good opportunity notjust for home life, but also for the workplace to take a fresh look at the way we work.

Nursing Care Handbook
As part of JVCKENWOOD’s support for employees to strike a balance between
nursing care and work, a handbook providing basic information about nursing careand the programs available has been produced and made available on the company
Intranet.
Eruboshi Certification logo

●Initiatives for People with Disabilities
With the aim of creating a comfortable workplace for all employees, regardless ofwhether or not they have a disability, training sessions have been held to deepen
understanding about the information and ideas needed to work together with employees Juggling Work & Nursing Care Handbook
with disabilities.
Also, as an initiative of support for people with disabilities, diversity and inclusion,
JVCKENWOOD has concluded a Memorandum of Understanding with the City of
Yokohama, and the Rendez-vous Project Yokohama Committee and SLOW LABEL(Specified Nonprofit Corporation), which organize Yokohama Paratriennale, with the aimof supporting cultural and artistic activities in which people with and without disabilities
work together.

Purejo-Bu for Workplace Vitalization
With the objective of “creating a company in which all employees can takepleasure in their work, regardless of their race, nationality, religion, physicalability, gender, age, or sexual orientation,” a project team called Purejo-Bu(abbreviation for Pleasure in the Job) has been formed to identify issues in thevarious workplaces that need to be resolved and to propose solutions to thoseissues. In FY2017, the team held a seminar and networking event on the themeof “health management for women to keep working with vitality.”●LGBT Initiatives

Purejo-Bu Networking Event28

JVCKENWOOD Report 2018

Employees are given training to deepen their understanding of LGBT issues, and a range
of initiatives have been launched to improve the workplace environment for LGBT
employees. In May 2018, JVCKENWOOD participated in the Tokyo Rainbow Pride 2018,
one of Japan’s largest LGBT festivals.

LGBT Ally Logo
JVCKENWOOD Report 201829

GroupOverview

Management
MessageTechnology
Based Company

Customer
Value Creator

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

Human Resource Management
Promoting the Health of Employees

Together with Employees
The JVCKENWOOD Group promotes measures to reform the way people work and strives to address health management in
its aim to become a company whose employees are all healthy and enjoy their work.

Promoting work style reform
The JVCKENWOOD Group has steadily been enhancing its efforts to help employees have a good balance between their work andfamily life (work-life balance), with the aim of positively embracing the diverse lifestyles and ways of working of employees, since it
launched a work style reform project last fiscal year.
●Cutting total working hours and encouraging creativity through increased productivity
We are conducting activities aimed at cutting total working hours by improving operational efficiency.
Specifically, we are implementing various measures including constructing a New Internal Portal to provide excellent communicationand searchability, optimizing internal meetings which take up the most of employees’ working time, establishing satellite offices andpromoting telecommuting to enable employees to reduce transit time and work wherever they are, and so on.
Through these measures, we first aim to cut the average actual total working time per employee Group-wide from 1,986 hours infiscal 2017 to less than 1,900 hours within two years. We hope that giving all our employees more spare time to spend freely will
increase their creative time, leading to a virtuous circle between their work and private lives.
●Encouraging the taking of planned leave
As well as cutting total working hours, we are encouraging employees to take more planned leave. We recommend five days ofconsecutive leave for workers and managers, and are striving to increase the average amount of leave taken per year per employee
from 16.5 days in fiscal 2017 to 20 days by fiscal 2020.
●Promoting exchange activities crossing workplace boundaries (club activities, Terakoya)
As a new trial since fiscal 2017, wehave been actively promoting somesocial activities outside working
hours.
One is the introduction of an
authorization system and a subsidy
system for in-house clubs. Forty
clubs have been launched sinceapplications were opened lastfall, and various sport and culture
associations are independently

Health Management
JVCKENWOOD is striving to become a company that is a good partner to all stakeholders and offers its employees rewarding tasks,a sense of achievement and fulfillment, and the joy of working with excitement.
To achieve this goal, we have been delivering the JVCKENWOOD Health Policy Statement as a management message to employees
to promote the “creation of a workplace environment that enables employees to stay healthy and motivated at work,” which isessential for each employee to demonstrate their abilities to the fullest.
JVCKENWOOD Health Policy Statement

Management

JVCKENWOOD strives to create a workplace environmentthat enables its employees to stay healthy and motivatedat work to achieve its corporate vision: "Creating
excitement and peace of mind for the people of theworld."

GeneralAdministration
Dept.

Based on the JVCKENWOOD Health Policy Statement, we promotehealth maintenance and enhancement of employees through thecollaborative efforts of management and the relevant divisions, suchas the Industrial Health, Human Resources Department and General
Administration Department as well as the Health Insurance Society.

Industrial
HealthDiversity
Safety and
HealthCommittee

Human
Resources
Dept.

HealthInsurance
Association

Mental Healthcare Measures
JVCKENWOOD is striving to raise awareness of mental health among employees with a stress check-up system, and working to
improve the workplace environment through employee care overseen by the line manager and other measures. At the same time,
we have established a counseling service hot line with external counselors, and set up a system for helping employees resolve theirwork and private worries.
We have also established a return-to-work support system for employees who are on leave but will go back to work. The system
supports their smooth return to work by increasing their workload and working time in stages.

Overtime Work Prevention Measures

carrying out activities that cross the boundaries
between workplaces.
We have also established Terakoya, the nickname forour in-house after-work club for study and interaction.
In this activity, employees who have different areas ofexpertise give lectures. It has been held a total of fivetimes since last year, and we plan to expand this in
future.

In coordination with our work style reforms, we actively try to reduce
employees’ working hours. We also strive to prevent health damage by
providing those who do work long hours with face-to-face guidance ora medical interview with an industrial physician.

Industrial physician interviewing an employee who works long hours

Promotion of Health Management Activities
Certified by “White 500 - Companies with Excellent Health Managementin 2018,” which is jointly administered by the Ministry of Economy, Tradeand Industry and Nippon Kenko Kaigi, JVCKENWOOD will accelerate
our collaborative healthcare programs with health insurance associations
and engage in further health management activities.
Amid recent reporting worldwide on the toxicity of passive smoking, we
will reinforce our anti-smoking measures and aim to lower our smoking
rate to below 20% by fiscal 2020.

30

JVCKENWOOD Report 2018

JVCKENWOOD Report 201831

GroupOverview

Corporate GovernanceCorporate Governance Structure
JVCKENWOOD believes that one of its most important management issues is to increase the transparency and efficiency ofits managerial decision-making process and improve corporate value by strengthening corporate governance. To this end, we
make it a basic policy to enhance corporate governance through the establishment of a structure that includes checks andbalances. That policy calls for separating management from the execution of operations, recruiting external directors andauditors, improving the function of acting as a check by establishing internal audit sections, and thereby strengthening theCompany’s internal control system on a Group-wide basis.
JVCKENWOOD has formulated the JVCKENWOOD Corporate Governance Policy, which sets out its basic approach and key
policies regarding corporate governance based on each principle of the Corporate Governance Code. The JVCKENWOOD
Corporate Governance Policy is available on the Company website.
(http://www.jvckenwood.com/corporate/governance/)

32

JVCKENWOOD Report 2018

Technology
Based Company

Customer
Value Creator

Contribution to
Sustainability

3. Matters Relating to the Audit & Supervisory Board andAudit & Supervisory Board Members
JVCKENWOOD is a company with an Audit & Supervisory
Board. Audit & Supervisory Board Members are responsible
for the corporate audit function and their duties include
a t t e n d i n g B o a rd o f D i re c t o r s ’ m e e t i n g s a n d o t h e rimportant meetings, as well as holding Audit & Supervisory
Board meetings, auditing the execution of Directors’
duties, business execution of the entire Group andcorporate accounting.
Since June 23, 2017, four Audit & Supervisory Board
Members (including two external Audit & Supervisory
Board Members) have been performing their roles andresponsibilities.
JVCKENWOOD works to ensure the effectiveness of the

Our Sustainability
EﬀortsBusiness
Overview

About Us

management supervisory functions based on experience,achievements, professional viewpoints, insights and otherattributes, as well as independence in terms of having nopotential conflicts of interest with general shareholders.
To this end, it nominates candidates for external Audit &Supervisory Board Members, in principle, after confirming
their business backgrounds (i.e. confirming they have notbeen major shareholders of JVCKENWOOD or engaged in
the execution of operations of any of JVCKENWOOD’s main
business partners) based on its independence standards
and policies, with the approval of the Audit & Supervisory
Board. Since June 24, 2016, JVCKENWOOD has appointed
Shojiro Asai and Nagaaki Ohyama as external Audit &Supervisory Board Members.

Organization System

Corporate Organizations
1. Matters Relating to the Board of Directors andDirectors
The Board of Directors, regarded as an organizationthat makes fundamental and strategic decisions while
overseeing business execution, holds regular meetings
once a month and extraordinary meetings when necessary
to deliberate and decide on basic management policies
and important matters as well as to monitor and oversee
the status of business execution. Directors’ terms of office
are for one year to make their responsibilities clear andto make management decision-making processes quicker.
In addition, we proactively recruit external directors toincrease the transparency of decision-making and leadinnovation and governance.
JVCKENWOOD, in December 2015, established theNomination and Remuneration Advisory Committee, forwhich all of its external directors serve as committee
members, with the aim of strengthening the independence
and objectivity of the functions of the Board of Directors.
The Nomination and Remuneration Advisory Committee
has since proposed JVCKENWOOD the representative
candidates to the Board of Directors, and reviewed theappropriateness of director candidates and directors’compensation plans proposed by the representative andothers, and reported its opinions. The Board of Directors
h a s d e t e r m i n e d d i re c t o r c a n d i d a t e s a n d d i re c t o r s ’compensation, taking into consideration the opinions
stated by the Nomination and Remuneration Advisory
Committee. As of June 22, 2018, Junichi Hikita, who
serves as external director, chairs the Nomination andRemuneration Advisory Committee, and Yasuyuki Abeand Shinjiro Iwata, who are external directors, serve as
committee members.
Since June 2016, JVCKENWOOD has appointed an external
director independent from and neutral to the managementof the Company as the Chairman of the Board of Directors.
As of June 22, 2018, Yasuyuki Abe, who serves as external
director, chairs the Board of Directors.
The Articles of Incorporation of the Company provide fora maximum of nine directors. JVCKENWOOD has nine
directors, and they were appointed at the 10th Ordinary
General Meeting of Shareholders held on June 22, 2018.
To ensure the effectiveness of the management supervisory
functions based on experience, achievements, professional
viewpoints, insights and other attributes, as well as
independence in terms of having no potential conflicts ofinterest with general shareholders, JVCKENWOOD elects

Management
Message

As of June 22, 2018

Shareholders' Meeting

candidates for external directors, in principle, by taking
such procedures as confirming their business background(i.e. confirming they have not been major shareholders of
JVCKENWOOD or engaged in the execution of operationsof any of JVCKENWOOD’s main business partners) basedon its independence standards and policies. Since June 22,
2018, JVCKENWOOD has appointed Yasuyuki Abe, Junichi
Hikita, and Shinjiro Iwata as external directors.
2. Matters Relating to the Executive Officer System
JVCKENWOOD has adopted an executive officer system,
differentiating its business execution function to clarify
management res pons i bi l i ty and bus i nes s ex e cut ion
responsibility. Since June 22, 2018, nine directors (including
three external directors) and 14 executive officers (sixconcurrently holding positions as directors) have been
performing their duties.
The Board of Directors, which leads innovation andgovernance, works to strengthen governance with an
external director serving as the Chairman, makes decisionst h ro u g h d i s c u s s i o n s b e t w e e n e x t e r n a l d i re c t o r s a s
independent directors and directors serving concurrently
as executive officers, and delegates authority for businessexecution to executive officers. In addition, the Chairman,
Representative Director of the Board serves as the Chief
Executive Officer (CEO) and the President, Representative
Director serves as the Chief Operating Officer (COO), andthey are responsible for both management supervision andbusiness execution. According to the decisions at meetingsof the Board of Directors, the CEO chairs the Board of
Executive Officers’ meetings, and each executive officer
executes business operations with responsibility.
JVCKENWOOD has established the position of regional
Chief Operating Officer (COO) for executives who assume
responsibility for the overall operations of all businesses
in the Americas, EMEA (Europe, Middle East, and Africa),
APAC (Asia Pacific), and China, as well as the positionof General Executive in the Automotive Sector, PublicService Sector, and Media Service Sector. We have alsoestablished the positions of Chief Strategy Officer (CSO),
Chief Administration Officer (CAO), Chief Financial Officer(CFO), and Chief Technology Officer (CTO) for officers
who oversee corporate divisions, and appointed executive
officers to those positions. In this way we have shifted toa new execution system, under which appointed executive
officers support the CEO and the COO towards achieving
Vision 2020, the Group’s Mid- to Long-Term Business Plan.

ReportReportAudit & Supervisory Board

Appointment and Removal

4 Audit & Supervisory Board Members(Including 2 from outside the Company)

Board of Directors

Audit/Report

Nomination and Remuneration
Advisory Committee(3 External Directors)

Consultation

9 Members of the Board of Directors(Including 3 from outside the Company)

Recommendation

Audit

Financial Audit

ReportCorporate
Audit Oﬃce

Board of Executive Oﬃcers
Chairman,
Chief Executive oﬃcer

Accounting Auditors

ReportAudit

Internal Control
Internal
Governance Oﬃce

Appointment and Removal

14 Executive Oﬃcers(Including 6 concurrently holding
positions as Directors)

Appointment and Removal

ReportAppointment and removalInternal Audits

Compliance Committee

President,
Chief Operating oﬃcer(CEO)

The Enterprise
Risk Management Conference(COO)

PL Board
Environment Board

COO
Americas

COO
EMEA*

COO
APAC*

COO
China

(Japan)Assistantto CEO

General Executive of Automotive
Aftermarket Business Division
General Executive of Automotive
OEM Business Division

Managing ExecutiveOﬃcer in Charge ofAutomotive Sector

General Executive of Automotive
Engineering & Design Division

Operations
Operations
Operations
Operations

Operations
Executive Oﬃcer in
Charge of
Public Service Sector

Assistant to CEO (Healthcare Business)

Operations
Operations

Operations

Excutive Oﬃcer
in Charge ofMedia Service Sector

Operations

Operations

Operations

OperatingCompany(Americas)

OperatingCompany（EMEA*）

Operations

Operations

Operation
Company(APAC*)

OperatingCompany(China)Automotive sector

Automotive AfterMarket Business Division
Automotive OEM Business Division
Automotive Engineering & Design Division
Automotive Q.C.D. Innovation Division, etc.

Public Service sector
Communications Systems Division
Healthcare Business Division
JVCKENWOOD Public &Industrial Systems Corporation

Media Service sector
Media Business Division

JVCKENWOOD
Victor Entertainment, Corp.

Other
Aﬃliates

Operations

Domestic
Sales
Division

Information Disclosure Council

Chief Strategy Oﬃcer (CSO)
Chief Administration Oﬃcer (CAO)
Chief Financial Oﬃcer (CFO)
Chief Technology Oﬃcer (CTO)
Note* EMEA: Europe, Middle East and Africa
APAC: Asia Paciﬁc

Operations

Operations

Corporate Division

Operations

Operations

JVCKENWOOD Report 201833

GroupOverview

Management
Message

Customer
Value Creator

Technology
Based Company

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

JVCケンウッドグループの概要
Internal Governance
JVCKENWOOD has set up three defense lines for internal governance.
The first defense line is to ensure there are no wrongdoing and noerrors in our business operating divisions. The second defense line isto place compliance groups within the Internal Governance Office, in
addition to the Finance & Accounting Division and Risk Management
Office, to strengthen and support the structure and operations of theinternal governance systems. The third defense line is to place theEnterprise Risk Management Activities
Corporate Audit Office as the internal audit division.
The Internal Governance Office and the Corporate Audit Office are
directly supervised by the CEO, and are independent from ordinary
business operations.

Internal Audit
At JVCKENWOOD, the Corporate Audit Office conducts internal audits
on the overall business execution of the entire Group, and internal
governance evaluations on financial reports (J-SOX evaluations), in
accordance with the audit plan approved by the Board of Directors,
and reports the audit results to the Board of Directors that serves as
an oversight organization. The Corporate Audit Office consists of 10
staff members engaged in internal audits and J-SOX evaluations. The
Corporate Audit Office performs a broad range of onsite inspections
on the activities of the Company as well as affiliated companies of theGroup, and monitors operations of the internal governance systems
in an integrated fashion. In this way, it works to maintain consistency
between operation and the management principles, enhance thebusiness structure and protect important assets, while helping toensure problems do not occur.
If there is any sign of fraud or similar committed by management,
there is a reporting rule that requires the Corporate Audit Office toreport the matter to Audit & Supervisory Board Members.

Status of the Accounting Auditor
During the fiscal year ended March 2017, the accounting audits of
JVCKENWOOD and the Group were performed by Deloitte Touche
Tohmatsu Limited.

Collaborative Work among Internal Auditors, Audits by Audit & Supervisory Board Members and Accounting Auditors
All the Audit & Supervisory Board Members including External Audit &Supervisory Board Members perform corporate audits by themselves,attend Board of Directors’ meetings, obtain the results of internal
audits performed by the Corporate Audit Office in relation to theGroup’s overall business operations, and exchange and confirm
relevant information with the Corporate Audit Office whenevernecessary.
At the Audit & Supervisory Board meeting, the results of accounting
audits performed by accounting auditors are regularly reported to
Audit & Supervisory Board Members. Accounting auditors regularly

have meetings with the Corporate Audit Office and exchange
information.
The Corporate Audit Office always works closely with the Internal
Governance Office, the Group management parties, and otherinternal divisions relevant to compliance matters and reinforcesmonitoring functions.
Thus, the Corporate Audit Office, Audit & Supervisory Board Members
and accounting auditors enhance the effectiveness of audits throughmutual collaboration.

Compliance Activities
JVCKENWOOD views compliance as a response to the needs ofsociety, not merely as adherence to laws and ordinances.
This means that the objective of compliance is not merely to comply
with laws and regulations, but to respond to the social needs behindthem through adherence to them. With the recognition of thisobjective, the Company clearly sets “Strive for sincere, responsible
corporate behavior as our commitment to compliance” as a new
action guideline and enhances compliance activities of the Group
comprehensively through the Compliance Committee led by the CEO.
The JVCKENWOOD Group Compliance Activity Standards that target
the entire Group were established in March 2010. The booklets (inthree languages) were circulated to all Group officers and employees
via the Intranet and the compliance supervisors appointed by the
Board of Directors of the Company ensure the full awareness of theStandards at all affiliated companies.
Compliance education is supervised by the Internal Governance Officeunder the leadership of the CEO.

34

JVCKENWOOD Report 2018

Key Philosophy and Activities
The JVCKENWOOD Group regards risks as “factors that could
inhibit the achievement of business plans” amid changes
in the social demands and circumstances surrounding theCompany. The Group regularly identifies risks faced by all its
business sites around the world to recognize them clearly,
set issues to tackle to prevent the realization of the identified
risks and minimize their impact or damage, and resolve thoseissues systematically. In the meantime, some of the identified
risks could affect the entire Company and thus require
problem-solving activities on a company-wide scale andfrom a company-wide perspective. Management takes theinitiative in implementing measures to resolve such problems.

Risk Management System
JVCKENWOOD implements the risk surveillance process shownin the diagram below at all its business sites around the world
every year. The purpose is to ensure the risk management
activities are conducted through collaboration between
its business sites and management. In the risk surveillance
process implemented throughout the year, we quantitatively
assess the significance of risks identified by the business sites,
examine problems in reducing risks of high significance, andwork on resolving those problems and confirm the effect. The

Enterprise Risk Management Conference, which is comprisedof members chosen from company executives and chaired by
the Chief Administration Officer (CAO), keeps track of the
progress and results of such activities. For risks that need tobe addressed on a company-wide scale and from a companywide perspective, company executives in charge selected fromamong the members of the Enterprise Risk Management
Conference systematically provide support to solve problems.

Risk Surveillance Process Implemented by All the Group’s
Business Sites around the World

Risk Management Led by Management

Automotive 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

The Enterprise Risk Management Conference
Chairman: Chief Administration Officer (CAO)
Members: General Executives and Executive Officers incharge of the sector, selected by the CAO
Identification ofsignificant risks

Interimmonitoring

Final review

Reassessment of risks

Compliance training by using e-learning training programs via theIntranet and practical training is provided to officers and employees of
the Company and its major affiliated companies.
If any suspicions about compliance matters arise, they will bedirectly reported to the Internal Whistleblower System (Helpline)
set up by the Internal Governance Office in accordance with theInternal Whistleblower Rules, and corrective measures will be taken
under the leadership of the Compliance Committee. In addition,
the Auditing Informer System is in place at the Audit & Supervisory
Board Office, and if suspicions arise about any accounting or auditing
operations, they will be directly reported to the system. These systems
serve as exclusive infrastructure for communication to protect theconfidentiality of the contents that are reported and the reporters’
names, and are operated by assigned staff to detect and correct
activities that do not adhere to the needs of society.

We consider that the most effective corporate response torisks is to identify them correctly in the course of our day-today corporate activities, understand the problems in reducing
risks, and have all our business sites around the world
collaborate with management to resolve those problems. With
these efforts, we will continue to contribute to promoting
sustainability activities with the aim of ensuring sustainablegrowth and enhancing our corporate value.

Secretariat
Risk
Management
OfficeIdentify risks that need to be addressed from acompany-wide perspective.

Implementation of measures Select persons to be in charge of solving problems from among thefor solving problems
members of 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 resultsof such activities at the Enterprise Risk Management Conference.
■ Formulation of risk-related regulations■ Promotion of Business Continuity Management (BCM)■ 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

Business Continuity Management (BCM)
Facing various risks, in particular emergency situations
including earthquakes and other natural disasters, spreadof epidemics, and the global expansion of terrorism,
the JVCKENWOOD Group recognizes that its first social
responsibility to stakeholders is to put the utmost priority on
preserving human life, and its second is to deliver products
and services. To fulfill these responsibilities, the Group has
defined the basic principle of the Business Continuity Plan
(BCP) as “contributing to social security and safety throughcontinuing business by swiftly reinitiating business operations
after the occurrence of an emergency situation.” Based on
this policy, the JVCKENWOOD Group has been conducting
BCP activities at all its business divisions.
On March 31, 2017, JVCKENWOOD received certification fromthe National Resilience Promotion Office, Cabinet Secretariat,
as a business operator contributing to the building of

national resilience against disasters (Resilience Certification) in
recognition of its endorsement of the objective of promoting
the building of national resilience and active engagement inefforts related to business continuity.
JVCKENWOOD will take this opportunity to make efforts tofurther enhance the quality of BCM.

JVCKENWOOD Report 201835

GroupOverview

Management
Message

Customer
Value Creator

Technology
Based Company

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

Corporate Profile/Stock Information

Management Team
Director of the Board/Audit & Supervisory Board Members

Corporate Profile

From left to right:
Yasuyuki Abe Yasuyuki Tanida Nagaaki Ohyama Takao Tsuji Masaki Imai

Shojiro Asai Satoshi Fujita Shoichiro Eguchi

Takayoshi Sakamoto Masatoshi Miyamoto

Junichi Hikita Shinjiro Iwata Masao Nomura

Director of the Board

Company Name

JVCKENWOOD Corporation

Businesss Segments

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

Representative Director

Takao Tsuji, Representative Director of the Board, Chairman, Chief Executive Officer (CEO)Shoichiro Eguchi, Representative Director of the Board, President, Chief Operating Officer (COO)

Date of Incorporation

October 1, 2008

Capital10 billion (as of March 31, 2018)

Number of Employees

17,801 (as of March 31, 2018)

Total Assets

239,877 million (as of March 31, 2018)

Equity53,792 million (as of March 31, 2018)

Fiscal Year-End

March 31

Head Office

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

Yasuyuki Abe*1

Masaki Imai

Masao Nomura

Director of the Board, Chairman of the Board

Director of the Board

Director of the Board

Takao Tsuji

Masatoshi Miyamoto

Junichi Hikita*1

Representative Director of the Board

Director of the Board

Director of the Board

Shoichiro Eguchi

Yasuyuki Tanida

Shinjiro Iwata*1

Ordinary General Meeting of Shareholders

In June each year

Representative Director of the Board

Director of the Board

Director of the Board

Record Date

Ordinary General Meeting of Shareholders: March 31
Year-end dividend: March 31 Mid-year dividend: September 30*Besides the above record dates, a dividend of surplus may be paid through specifying a record date separately

Stock Exchange Listing

Listed on the first section of the Tokyo Stock Exchange

Security Code6632

Trading Unit

100 shares

Stock Information*1. External Director specified in Item 15, Article 2 of the Corporate Law.

Audit & Supervisory Board Members
Satoshi Fujita

Takayoshi Sakamoto

Shojiro Asai*2

Nagaaki Ohyama*2

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Audit & Supervisory Board Member*2. External Audit & Supervisory Board Member specified in Item 16, Article 12 of the Companies Act.

Total Number of Shares Issued 139,000,201 shares (including 55,050 treasury shares) (as of March 31, 2018)

Executive Officers●Yasuyuki Tanida●Takao Tsuji
Chairman, Chief Executive Officer (CEO),
Chief Export Control Officer●Shoichiro Eguchi
President, Chief Operating Officer (COO)

Shinichi Takada

Managing Executive Officer,
Chief Technology Officer (CTO)

Executive Officer, COO APAC (Asia Pacific)

Naokazu Kurihara

Akihiko Terada

Managing Executive Officer,
COO Americas

Executive Officer, COO China,
Chairman of JVCKENWOOD Hong Kong Holdings Limited,
Chairman of JVCKENWOOD Hong Kong Limited,
Chairman of JVCKENWOOD (China) Investment Co., Ltd.

● Masao Nomura●Masaki Imai

Kazuyoshi Hayashi

Executive Vice President,
Chief Strategy Officer (CSO),
Chief Administration Officer (CAO),
General Manager of Internal Governance Office,Export Control Legal Audit Officer

Managing Executive Officer in Charge of Automotive
Sector,
General Executive of Automotive OEM Business Division,
COO EMEA (Europe, Middle East and Africa)

Executive Officer in Charge of Media Service Sector,
General Executive of Media Business Division

Kazuhiro Aigami

Takuya Arai

Yoshio Sonoda

Executive Vice President,
Assistant to CEO (Healthcare Business)

Managing Executive Officer,
General Executive of Automotive Aftermarket Business Division

Executive Officer, General Executive,
Automotive Engineering & Design Division●Masatoshi Miyamoto
Senior Managing Executive Officer,
Chief Financial Officer (CFO)

Total Number of Shareholders

47,462 (as of March 31, 2018)

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■Shareholder Composition■Major Shareholders (Top 10)

As of March 31, 2018

As of March 31, 2018

Japanesecompanies
4.53％

Treasury stock
0.04％

Securities
companies
2.64%

Akira Suzuki
Executive Officer in Charge of Public Service Sector● Concurrently serving as Director of the Board.

Executive Officers Not including board members concurrently serving as Director of the Board

Financial
institutions
25.31%

Individuals
and others
29.58%

Foreigncompanies
37.90%

Kazuhiro Aigami

36

Naokazu Kurihara Takuya Arai

JVCKENWOOD Report 2018

Akira Suzuki

Shinichi Takada

Akihiko Terada

Number of stocks held
(thousands)(%)

Ratio ofshareholding(%)

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

6,976

5.02

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

5,490

3.95

Japan Trustee Services Bank, Ltd. (trust account)

5,092

3.66

DENSO Corporation

4,171

3.00

THE BANK OF NEW YORK MELLON 140044

3,398

2.44

Japan Trustee Services Bank, Ltd. (trust account 5)

2,799

2.01

THE BANK OF NEW YORK MELLON 140040

2,799

2.01

GOLDMAN SACHS INTERNATIONAL

2,617

1.88

JPMC GOLDMAN SACHS TRUST JASDEC LENDING ACCOUNT

2,575

1.85

DFA INTL SMALL CAP VALUE PORTFOLIO

2,475

1.78

Name

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

Kazuyoshi Hayashi Yoshio Sonoda
JVCKENWOOD Report 201837

GroupOverview

Network (Global)

Management
Message

Customer
Value Creator

Technology
Based Company

Contribution to
Sustainability

Business
Overview

Our Sustainability
EﬀortsAbout Us

Network (Japan)
As of June 1, 2018

Manufacturing Companies

As of June 1, 2018

Business Centers and R&D Bases

Name

Location

Main Products

Name

Location

Main R&D Products

JVCKENWOOD Electronics Malaysia Sdn. Bhd.

Malaysia

Communications equipment and car electronics

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Projector, video cameras, AV accessories, home audio, etc.

JVCKENWOOD Electronics (Thailand) Co., Ltd.

ThailandMedia equipment and professional products

Hachioji Business Center

Hachioji, Tokyo

Car electronics equipment

JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.

ThailandCar electronics and media equipment

Hakusan Business Center

Yokohama, Kanagawa

Land mobile radio, video surveillance equipment, etc.

PT. JVC Electronics Indonesia

Indonesia

Car electronics equipment

Kurihama Business Center

Yokosuka, Kanagawa

D-ILA devices, laser diodes, etc.

Shanghai Kenwood Electronics Co., Ltd.

China

Car electronics and telecommunications equipment

Principal Manufacturing Sites and Manufacturing Companies
Operation Companies: Americas

Operation Companies: EMEA

Name

Location

Main Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Optical components

Name

Location

Name

Location

Kurihama Business Center

Yokosuka, Kanagawa

Optical components and projectors

JVCKENWOOD USA Corporation

U.S.A.

JVCKENWOOD U.K. Limited

The United Kingdom

Yokosuka Business Center

Yokosuka, Kanagawa

CD and DVD discs (prerecorded)

JVCKENWOOD Canada Inc.

CanadaJVCKENWOOD Italia S.p.A.

Italy

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Telecommunications equipment and professional products

JVCKENWOOD Latin America, S.A.

PanamaJVCKENWOOD Deutschland GmbHGermany

JVCKENWOOD Nagano Corporation

Ina, Nagano

Car electronics equipment

JVCKENWOOD Belgium N.V.

Belgium

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

Medical display monitor solutions and in-vehicle substrates

JVCKENWOOD Europe B.V.

Netherlands

JVCKENWOOD RUS Limited Liability Company

RussiaJVCKENWOOD Gulf Fze

U.A.E.

Name

Location

Main Business

JVCKENWOOD Victor Entertainment Corporation

Shibuya-ku, Tokyo

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

JVCKENWOOD Creative Media Corporation

Yokosuka, Kanagawa

Development, manufacturing and sales of recorded optical disks

JVCKENWOOD Public & Industrial Systems Corporation

Yokohama, Kanagawa

Development, sales, manufacture, installation, maintenance and repair ofprofessional audio, imaging and telecommunications equipment

JVCKENWOOD Video Tech Corporation

Shibuya-ku, Tokyo

Production, editing and sales of video, and studio operations

JVCKENWOOD Service (Japan) Corporation

Yokosuka, Kanagawa

After-sales services of audio and imaging equipment

JVCKENWOOD Engineering Corporation

Yokohama, Kanagawa

Development and design of hardware and software

JVCKENWOOD Design Corporation

Setagaya-ku, Tokyo

Planning and production of industrial designs

JVCKENWOOD Partners Corporation

Hachioji, Tokyo

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

Other Principal Affiliated Companies
Operation Companies: Asia-PacificOperation Companies: China

Name

Location

Name

Location

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVCKENWOOD (China) Investment Co., Ltd.

China

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

JVCKENWOOD Hong Kong Ltd.

China

JVCKENWOOD (Thailand) Co., Ltd.

ThailandPT. JVCKENWOOD Indonesia

Indonesia

JVCKENWOOD Australia Pty. Ltd.

Australia

Other Principal Affiliated Companies

38

Name

Location

Main Business

Zetron, Inc.

U.S.A.

Development, manufacture and sales of telecommunications equipment

EF Johnson Technologies, Inc.

U.S.A.

Development, manufacture and sales of telecommunications equipment

ASK Industries S.p.A.

Italy

Development, manufacture and sales of car electronics equipment

Radio Activity S.r.l.

Italy

Development and sales of professional radio systems

Rein Medical GmbHGermany

Development, sales and implementation of OR imaging solutions

JVCKENWOOD Technologies Singapore Pte. Ltd.

Singapore

Manufacture and sales of telecommunications equipment

JVCKENWOOD Hong Kong Holdings Limited

China

Manufacture and sales of car electronics equipment and contract manufacturingservice of electronics devices

JVCKENWOOD Report 2018

JVCKENWOOD Report 201839

●2016

Jul.

Commenced a development assistant project for Multi Live Monitor wireless stereo headset by using crowdfunding

●2017

Mar.

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

Apr.

Completed an absorption-type merger of two consolidated subsidiaries; JVCKENWOOD Kenex Corporation and JVCKENWOOD Home Electronics Corporation

May.

Jointly developed the advanced digital cockpit system for McLaren 720S, a luxury sports car, with McLaren Automotive

Aug.

Signed a memorandum of operational collaboration with Sanwa Koutsu toward the development and introduction of a taxi dispatch system●2018 Jan.

Acquired all the shares issued by Italy-based Radio Activity S.r.l., adeveloper and seller of digital radio relay systems that are compliant with
Digital Mobile Radio (DMR), an international digital radio standard

Jan.

Announced Progress and Revision of the Mid-to Long-Term

Mar.

JVCKENWOOD's DMR-compliant digital radio communications systems

Management Plan Vision 2020 launched in 2015
being adopted by MotoGP™, a motorcycle racing championship

JVCKENWOOD's DMR-compliant
digital radio communications
systems adopted by MotoGP™

● For further information, please contact:

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

2018

JK0027
Printed in Japan