2009

Corporate Vision“Realize the unconventional(Katayaburi wo katachi ni)”
●Course of Action“Perpetual reform centered on each and every individual”
We determined this corporate vision to include concepts held in common in JVC’s Brand Statement, “ThePerfect Experience,” and in Kenwood’s corporate vision, “Reaching out to discover, inspire and enhancethe enjoyment of life.” Moreover, we determined the course of action as a code of behavior for sharing andrealizing the corporate vision by all of the employees of the Group.
Under the corporate vision and course of action, we will create new and unconventional added-value andevolve into a corporate group that provides customers with incomparable experiences they have never before
experienced.

Table of Contents

About this report

Corporate Vision and Course of Action 2

This report was produced to introduce to all our stakeholders that

Top Management Message

the JVC Kenwood Group defines social responsibility as “providing

4

feeling and warmth in products that are an integral part of our

Economic Report

lives.” We’ve spent considerable time crafting this document,

Business Overview

6Company Overview

7

using many pictures and adjusting the styles, sizes, and colors offonts to make it easier to read and more visually appealing.

Highlight (1)8● Structure of this report
The “Economic report,” “Social report,” and “Environmental

Highlight (2)10report” are derived from the Kenwood Group’s corporate visionCorporate Governance14

and are the pillars of our broad range of activities.
Detailed information on our financial status is available in ourSocial Report

Annual Report.

Stakeholders

16

Working with Our Customers

17

Working with Our Employees

24

Working with Our Suppliers

27

Acting Locally28● Scope of this report
This report is published by JVC KENWOOD Holdings, anddescribes the activities of group and affiliated companies both inJapan and abroad.
The activities of J&K Car Electronics Corp (formerly J&K
Technologies*) includes a description of the activities of bothcompanies.

Environmental Report
Environmental Philosophy and Policies

32

Environmental Management

33● Period covered by this report
Reports focus on activities during fiscal 2008 (April 1, 2008 to
March 31, 2009); including some details of fiscal 2009.
● Published
August 2009 (next publication scheduled for August 2010).

Promoting a Voluntary
Environmental Action Plan

36

Making Products Environmentally Friendly38● Reference materials
GRI Sustainability Reporting Guidelines 2006

Making Our Offices Green

43

Environmental Reporting Guidelines from the Japanese Ministry ofHistory of Environmental Activities

47

the Environment (2007)

2

Note: From June 24, 2009, J&K Technologies Corp. changed its name to J&K Car
Electronics Corp.

Overview of JVC Kenwood Group
Current as of end of June 2009

Joint Holding Company
JVC KENWOOD Holdings (Head office: Yokohama, Kanagawa Prefecture)
Manages the car electronics business, home and mobile electronics business, office systems business, and entertainment business; and manages
the business activities of the relevant companies by holding shares in or partial ownership of the companies that manage those activities.

Operating Companies
Victor Company of Japan, Limited(JVC)

J&K Car Electronics Corporation

Kenwood Corporation(Head office: Hachioji, Tokyo)(Head office: Yokohama, Kanagawa(Head office: Yokohama, Kanagawa

The research, development, design,

Prefecture)

Prefecture)

production, and related business of audio

The research, development, design,

The research, development, design,devices, visual devices, and electrical andproduction, and sales of communications

production, sales, and related business forelectronic devices in the car electronics

devices, and the sale and related businesshome and office audio-visual, computerfield.

for car electronics and home electronics

devices, and disks, among other products.

devices.

Affiliated Sales Companies■ Asia, Oceania, the Middle East, and Africa■ Europe

Kenwood Electronics Belgium N.V.
Kenwood Electronics UK Limited
Kenwood Electronics Deutschland GmbH
Kenwood Electronics France S.A.
Kenwood Electronics Italia S.p.A.
Kenwood Ibérica, S.A.
Kenwood Electronics C.I.S. Limited Liability Company

JVC Europe Ltd.
JVC (UK)
JVC Professional Europe Ltd.
JVC France S.A.S.
JVC Deutschland GmbHJVC Professional Europe Ltd. Frankfurt Branch
JVC Italia S.p.A.
JVC Professional Europe Ltd. Milano Branch
JVC Espana, S.A.
JVC Benelux B.V.
JVC Professional Belgium S.A. / N.V.
JVC Danmark A/SJVC Svenska AB
JVC Norge A/SJVC Schweiz AG
JVC International (Europe) GmbHJVC Polska Sp. Zo. o.
JVC Czech spol. s.r.o.
OOO “JVC CIS”
Kenwood Electronics Europe B.V.

■ Americas
JVC Americas Corp.
JVC U.S.A.
JVC Canada Inc.
JVC Professional Products Canada Inc.
JVC Latin America, S.A.
JVC do Brasil Ltda.
Kenwood U.S.A. Corporation
Kenwood U.S.A. Corporation Communications Sector
Kenwood Electronics Canada Inc.
Kenwood Electronics Latin America S.A.
Kenwood Electronics Brasil Ltda.

JVC Asia Pte. Ltd.
JVC ASIA Pte. Ltd. Sales & Service Division
JVC Sales & Service (Malaysia) Sdn. Bhd.
JVC Sales & Service (Thailand) Co., Ltd.
JVC (Philippines), Inc.
JVC Vietnam Limited
JVC Taiwan Corp.
JVC Gulf FZE
Kenwood Electronics Singapore Pte Ltd.
Kenwood Electronics Australia Pty. Ltd.
Kenwood Electronics (Malaysia) Sdn. Bhd.
Kenwood Electronics (Thailand) Co., Ltd.
Kenwood Electronics Gulf Fze■ China
JVC(China) Investment Co., Ltd.
Kenwood Electronics (Hong Kong) Ltd.
Kenwood Electronics Trading (Shanghai) Co. Ltd.

R&D Centers and Business Centers
JVC Head Office & Yokohama Plant

JVC Kurihama R&D Center

Kenwood Hachioji Business Center

Kenwood Yokohama Business Center

Manufacturing Sites and Affiliated Manufacturing Companies■ Main Japanese Manufacturing Sites andAffiliated Manufacturing Companies
JVC Yokosuka Plant
JVC Maebashi Plant
JVC Hachioji Plant
Victor Creative Media Co., Ltd. Rinkan Plant
Victor Interior Furniture Co., Ltd.
Kenwood Yamagata Corporation (Yamagata Plant)
Kenwood Nagano Corporation (Nagano Plant) *Kenwood Devices Corporation■ Global Affiliated Manufacturing Companies
JVC America, Inc.
JVC Industrial de Mexico, S.A. de C.V.
JVC Electronics Singapore Pte. Ltd.*JVC Manufacturing Malaysia Sdn. Bhd.
JVC Manufacturing (Thailand) Co., Ltd.
JVC Manufacturing (Thailand) Co., Ltd.
P.T. JVC Electronics Indonesia*
Kenwood Electronics Bretagne S.A.*
Kenwood Electronics Technologies (S) Pte. Ltd.

Kenwood Electronics Technologies (M) Sdn. Bhd.*
Shanghai Kenwood Electronics Co. Ltd.** J&K Car Electronics Corporation Affiliated Manufacturing
Companies

Main Japanese Consolidated Affiliated Companies
Sanin Victor Sales Co., Ltd.
Okinawa Victor Sales Co., Ltd.
Victor Arcs Co., Ltd.
Victor Entertainment Inc.
Teichiku Entertainment Inc.
FlyingDog Inc.

Victor Facility Management Co., Ltd.
Victor Service & Engineering Co., Ltd.
Victor Logistics Inc.
J&K Partners Corporation
Kenwood Kenex Corporation
Kenwood Geobit Corporation

JVC Networks, Inc.
Victor Music Arts Inc.
JVC Entertainment Inc.
Nippon Record Center Co., Ltd.
Victor Creative Media Co., Ltd.
Victor Finance Co., Ltd.

Kenwood Core Corporation
Kenwood Home Electronics Corporation
Kenwood Service (Japan) Corporation
Kenwood Design Corporation
Kenwood Personnel Corporation
Kenwood Engineering Corporation

Other Main Global Affiliated Companies
JVC Logistics Europe N.V.
JVC Technical Services Europe Gmbh
JVC Technology Centre Europe Gmbh
JVC Industrial America, Inc.
JVC Finance of America
JVC Marketing India Private Limited

JVC Trading (Shanghai) Co., Ltd.
Beijing JVC AV Equipment Co., Ltd.
Beijing Kelin JVC Electronic System Engineering Co., Ltd.
JVC (Beijing) Research & Development Center, Ltd.
JVC Purchasing Center (H.K.), Ltd.
Zetron, Inc.

3

Zetron, UK Ltd.
Zetron Australasia Pty Ltd.,
Zetron Australasia Air Systems Pty Ltd.

Top Management Message

Top Management Message

The JVC Kenwood Group is developing products that combinefunctionality with high environmental values according toenvironmental regulations in market countries.

Economic Report

JVC and Kenwood Corporation merged their businesses

Looking back on 2008, JVC’s LCD TV, which wason October 1, 2008, to form “JVC KENWOOD Holdings

launched in the European market, was highly regarded forInc.”

its design and energy-saving performance. Not only did it

JVC has been manufacturing imaging and audio

win the “Plus X Award *1” and the “EISA Award *2,” it was

equipment for 82 years and is an entertainment company

also highly regarded in America as well as the model withfocusing mainly on audio software. Kenwood has been

the best energy-saving performance in each class rated bymanufacturing audio and wireless devices for 63 years.

the Environmental Protection Agency (EPA).
The Digital LMR “NEXEDGETM” was highly regarded for
its energy-saving performance and excellent reliability,
and is used in large-scale facilities around the world,

Highlights

including Las Vegas hotels, and was also used as a masscommunications system by the Japanese Ministry ofForeign Affairs at the Toyako summit.
We are aware that these results are the effects of bothcompanies working together with honest commitment inmarketing and other aspects.

Corporate Governance

We will lead the industry in the future by leveraging ourindividual strengths to create synergy and as a businessgroup combining our entertainment business with ourimaging, audio, and wireless technologies. Our products
will be valued for both high performance and compliancewith international environmental laws.

Social Report
Environmental Report4Fulfilling our Corporate Responsibilities as a“Green Company”

Satisfying Customer Expectations of Reliability

Top Management Message

Top Management Message

added value through our business management and sense

performance, and design, to bring new sensations andof responsibility towards the lofty goals we have raised

style to our customers’ lives.

for ourselves to meet the needs of society by fulfilling our

We maintain our customers’ trust by supporting thelegal, social, and environmental responsibilities.

environmental regulations being established around theTo maintain and cultivate its position of popularity, theworld, eliminating harmful chemicals, publically announcing

JVC Kenwood Group is reducing the environmental

compliance with regulations, and providing information

burden associated with production and business

about recycling that people need.

activities and expanding and promoting products that

Further, by considering the true meaning of ourare environmentally friendly. As a green corporation,

involvement as a company both locally and in society, we

the JVC Kenwood Group is promoting a wide variety ofare aiming to be corporate citizens who are trusted byenvironmental activities as it takes on the responsibility tolocal residents through our positive involvement in activities

create a sustainable society in harmony with the planet’sthat contribute to society.

environment.
Finally, we not only thank everyone who has cooperated in

Promoting Environmentally-Conscious Designs
that Contribute to Society

the business activities of the JVC Kenwood Group, suchas customers and trading partners, we also ask for yourfurther understanding and support.

The JVC Kenwood Group is promoting products designed

Highlights

are highly regarded around the world for their quality,

Corporate Governance

The JVC Kenwood Group is continuously creating new

Economic Report

The JVC Kenwood Group is developing products, which

for the environment that use less energy and are madebased on the 3Rs (reduce, reuse, and recycle). We aim toof environmental management. To do this, we are putting
our energy into creating products that are lighter, use

Haruo Kawahara

less energy, are an effective use of resources, and use no

Chairman, President, and CEO

harmful chemicals.

Environment Board Chairperson

Social Reportcause “zero” risk to the environment through our system

Note 1: “Plus X Award”: A prize that fetes design products in the arts and crafts, sports, and fashion industries of Europe.
Note 2: “EISA Award”: An acronym for the European Imaging and Sound Association; the best model by category is chosen from among visual-related devices
launched each year by a selection committee of photo, video, and audio specialist magazines from 20 European countries, making this one of the mostprestigious awards in the world.
		 JVC LCD TV won the “EUROPEAN GREEN TV 2008-2009” award.

The background scene was taken from the roof of the Techno Wing Building at JVC’s
head office plant.

5

Environmental ReportJVC KENWOOD Holdings Inc.

Economic Report
Overview of JVC Kenwood Group Business
Through the merger of the core businesses of JVC and Kenwood, the JVC Kenwood Group provides
products that become a part of our lives in our ever-changing lifestyles. We are promoting “genre-top
strategies*” that are targeting a worldwide top spot in each business area.
Note: A “genre-top strategy” injects management resources to capture the top position on the planet in each business area.

Car Electronics BusinessLeading the car AV market with products that are fun and have the best sound quality for any media by
maximizing the synergy created by merging business operations
Economic Report● Car audio● All-in-one navigation andentertainment systems● On-board optical disk drive
mechanisms● Navigational developments

Highlights
Car audio and AV all-in-one navigation

On-board optical disk drive mechanisms

Corporate GovernanceHome and Mobile Electronics Business
Presenting a pleasant living space with high-quality audio and visual technology cultivated over many years
Digital Imaging Business● Camcorders● Development ofSocial Report

Professional Camcorders● Projectors
Camcorders

Projectors

Home Entertainment Business● LCD TVs
● Home audio● AV accessories

LCD TVs

AV accessories

6Home audio

Economic Report

Professional Systems BusinessSupporting customers with high reliability and service● Emergency and officebroadcasting equipment

Digital land mobile radio● Surveillance camera systems● Pro HD Camcorders

Surveillance camera systems

Emergency and office broadcasting equipment

Pro HD Camcorders

Entertainment BusinessEconomic Report

Top Management Message● Digital LMR equipment

Contributing to world culture by supplying dreams and sensations through a broad range of musical genres

Highlights

and numerous products● New employee recruitment and training● Development and sales of packaged
products● Music broadcasting● Development of licensing business

Summer Thanksgiving Festival Live(regular version)Southern All Stars(DVD: VIBL-600 to 601)

Corporate Governance● Creation of hits through marketing
PUZZLE (regular version)/
Kan-Johnny(CD: TECI-8008)

SMAP 2008 super modern
artistic performance tour/
SMAP(DVD: VIBL-501 to 503)

Company Overview (March 2009)
Company name JVC KENWOOD Holdings Inc.
Head office3-12 Moriya-cho, Kanagawa-ku, Yokohama, Kanagawa Prefecture		

Established
Capital
Employees (consolidated)

October 1, 2008
10 billion yen
19,540Major management indicators (consolidated) (millions of yen)

JVC

Kenwood

March 2006

March 2007

March 2008

March 2009*

JVC

KenwoodJVC

JVC

JVC KENWOOD
Holdings

Kenwood

KenwoodSales

840,591

181,112806,900

183,616

742,686

169,194

658,449

165,262

Operating profits

10,370

7,061

6,891

8,686

5,657

5,617

3,262

6,259

107

Net profits

1,858

4,836

30,608

6,104

7,892

1,586

47,522

3,181

18,795309,771

Note: JVC KENWOOD Holdings was established as a joint stock company between both companies on October 1, 2008, concomitant with the business merger
between JVC and Kenwood. Kenwood acquired the merged corporate accounts when the holding company was established. The consolidated business results
for the third quarter of 2009 (April 1, 2008 to March 31, 2009) consolidated the business results for the second half of the fiscal year for JVC (October 1, 2008 to
March 31, 2009) based on the consolidated business results for the relevant quarter for Kenwood, which is the acquiring business. From October 1, 2008, theJVC Kenwood Group cannot make net comparisons with the third quarter of the previous year (2008). This is due to the merger and reorganization of the corebusinesses of both companies, the launch of the new business group, and the change from JVC’s system for calculating sales amounts to a net system (which
deducts part of customer discounts from sales amounts). Detailed information is available in our separate Annual Report.

7

Environmental Report

March 2005

Highlight (1)Developing Business Using Group Strength Based on a Comprehensive Strategy
JVC and Kenwood are pouring all their efforts into new businesses that “realize the unconventional”
Top Management Message

based on a comprehensive strategy that makes full use of the marketing abilities, product planning,and development skills cultivated by both companies. Working together, we are fusing our video, audio,
and wireless technologies at a high level to develop new technologies and products suited to the era ofdigital networks. Further, in addition to evoking latent needs by stimulating people’s senses, we are also
leading the AV world as a specialist manufacturer of audio and video equipment that is changing theworld’s lifestyles.

Economic Report

JVC is the Parent of VHS

Highlights
Corporate Governance

The Victor Talking Machine Company of Japan, Limited manufactured and sold phonographs and records. It
was founded in 1927 and is the predecessor of JVC. JVC has been based in Yokohama for 82 years and now
operates worldwide as an audio and video entertainment company.
We have changed people’s lives across the globe through the wide variety of products we have produced andsold according to our “contributing to culture, dedicated to society” business slogan.
In 1939, we successfully produced Japan’s first television receiver. In 1956, we released the first stereo record
made in Japan. In 1978, we developed “VHS,” which became the global standard for home VCRs, leading to
the spread of a new video culture into ordinary homes.
In 2003, we published “The Perfect Experience-truly moving experiences and total customer satisfaction” as ourbrand statement, and based on this ideal, developed the world’s first hard disk camcorder “Everio,” the world’s
first “Wood Cone” speakers, and the “D-ILA” program, which achieved the greatest contrast in the industry.
We will continue to hone audio and video technologies to provide sensations based on our comprehensive
strategy.

2004: The world’s first Camcorder with built-in hard disk
drive as the recording medium. Compact and lightweight, it
enables long-time recording.

Social Report
2003: The world’s first Wood Cone speaker, made from real
wood to reverberate like a woodwind instrument.

Environmental Report

1978: Japan produces the first global VHS standard spreading
the culture of video tape recording to ordinary homes.

1939: The first commercial television receiver in Japan.
The Japanese katakana character “ ” was the first everimage on the CRT.

8

Highlight (1)2008: Land mobile radios obtain the 2nd-largest global
share through high-frequency and digital radio technologies
cultivated over many years.

Economic Report
Highlights

Kenwood started as “Kasuga Radio Co., Ltd.” in Komagane, Nagano Prefecture, in 1946. Ever since starting
production of high-performance radio parts (high-frequency coils), and based on that era’s corporate ideal ofcontributing to society through FM, we gave the world various high-performance devices, such as when we
began selling Japan’s first FM tuner in 1957.
We now hold the second largest share of the global market because we have expanded business in the fields
of audio and wireless communications. Based on high-frequency technology that we developed over many
years, our high reliability in the land mobile radio business is now recognized in a wide range of business andcommercial fields such as police and fire departments, hotels, and factories. Further, we are continuing to supply
digital LMR systems to Vodafone McLaren Mercedes, which is a premier F1 racing team. In the field of audio,
ever since launching the world’s first MP3-compatible car audio in 2000, we have been involved in actualizing
seamless entertainment where hi-fidelity can be enjoyed seamlessly both in the car and in the home.
In the future, by merging the core businesses of JVC and Kenwood in the JVC Kenwood Group, we will continue
to remain in touch with trends in new technology and hone our ability to understand customer needs to deliver
our unique worldview of audio, radio, and video technologies.

Top Management Message

Kenwood Has Grown with the Development of FM

2000: The world’s first MP3 car audio is launched, and wins
overwhelming support from MP3 fans.
Not only the high-frequency technology, but also the sizeof our technical abilities as an audio manufacturer provesappealing.

High-level coil set launched.
The coil set is the deciding factor in receiver performance. Radio waves
can be accurately picked up even in areas with poor reception.

Environmental Report

December 1, 1946: Kasuga Radio Co., Ltd. founded.

Social Report

1957: Japan’s first FM tuner enters commercial production, and we are also the first Japanesemanufacturer to start exporting overseas.
The scope of our technical ability at the time was acknowledged throughout the industry, andcontributed greatly to the development of FM broadcasting.

9

Highlight (2)New Lifestyle Proposals Using Design Prototypes
The design departments at JVC and Kenwood are supplying a new lifestyle that enables a sense of
Top Management Message

emotion and healing through our design prototypes.
JVC has exhibited design prototypes at Tokyo Designer’s Week, and Kenwood at Design Tide Tokyo
respectively, to announce new proposals and let everyone who visited experience the new lifestyles.

JVC Design Department
Economic Report

Proposing New Lifestyles Using Design Prototypes ----- Exhibiting at Tokyo Designer’s Week ----We, the design department at JVC, cite as our design

Using this design philosophy as our base, we arephilosophy the creation of a new resonance between

broadcasting to the world the creation of new values bypeople and products using designs that transcendsolidifying proposals for new lifestyles and products withexpectations by anticipating the needs of our customers.

new forms.

Highlights

Participation in Design Events and a Place to Communicate with Customers

Corporate Governance

Between October 31 and November 2, we exhibited, as a

The objective was to communicate with many customers,

sponsor, design prototypes that used the “Sound Garden”

from professional creators and students majoring in(“sound”= “technology” and “garden”= “an eco-friendly

design to ordinary members of the public who cameworld”) as the key concept at our specially-constructed

to visit. Supervising designers explained their ideas

booths in the Shimbashi JVC Showroom at “Tokyo

while exchanging aural demonstrations, and the visitors

Designer’s Week,” Japan’s biggest design event.

responded with surprise and voiced their opinions.
We fully intend to incorporate this feedback into future
production.

Social Report
Environmental Report10Highlight (2)New Eco-Friendly Products and New Lifestyles Arising from Design
environmentally aware speakers that are making imagined

ecology and the sound technology of JVC to create newlife spaces a reality.
Top Management Message

The design prototypes “kirikabu” and “komorebi” fuse“kirikabu”
Personal speakers that manifest their organic design byusing plant cuttings (“kirikabu”) as their motif.
Plants can live on top of the speakers.

Economic Report

This idea is to live in a way that listening to music andbeing surrounded by plants come together.
Watering the living plants is also fun.
These compact speakers use a circuit that consumes little
power but enables hi-fidelity sound. Their cases are madeusing a plastic material extracted fromplants known as “residue,” whichmakes them eco-friendly.

Highlights

There is a natural
feeling even
without painting,and no harmful
as dioxins areproduced.

“komorebi”
We designed these surround-sound speakers to
reproduce the shimmer of invisible sounds like sunlight

Corporate Governancesubstances such

filtering through trees.
for their small size they produce an unexpected breadthof sound with power and a sense of realism like a “private
theater” and have great appeal as an interior design

Environmental Report

element.

Social Report

Equipped with JVC’s “near speaker surround” technology,

11

Kenwood Design Department
Proposing Sounds and Lifestyles Felt with the Five Senses from a Global Perspective —Exhibiting at Design Tide Tokyo—
Top Management Message

Contact with music is indispensable for a stress-freemessage to the world at “Design Tide Tokyo” over a five-lifestyle. Kenwood’s design department proposes productday period from October 30 to November 3. It was a placedesigns that enable us to empathize with the userof new experiences that communicated the multiplicity

centering on a lifestyle with music. We announced ourof sound sensations andenabled feelings through thefive senses.

Economic Report
Highlights
Corporate GovernanceIn Pursuit of Audio Quality and Design. A Challenge for Designers and Engineers.

Social Report
Environmental Report

To start, we held a workshop to consider all aspects ofFurther, by sharing“Sound” where we threw out all preconceptions about thepowerful ideas we

pleasure and importance of music in our lives. Designers,

created prototypes

engineers, andmade with a view

sound meister,to future lifestyles

workingand spiritually-richas a team,cultures.

discussed

The fusion of the uncompromisingproducts notobsessions of the engineers andonly for theirdesigners breathed life into these

designability, but also how to actualize the soothing andproducts, which move people

uplifting sensations obtained from music.

emotionally.

12

Highlight (2)The three prototypes created for a future spiritually-richtrust with a partner.

culture and lifestyle are all products with different concepts.

Further, Kenwood designs also include originalOn this occasion, our first experiment was the joint

development models that imagine a new scene in touchdevelopment with Claudio Colucci, who is activewith music. This proposal incorporates the message ofworldwide as an interior product designer. The exchange

our new worldview regarding the essential relationshipof ideas with a designer from a different environment was

between people and music.

extremely stimulating, and was an opportunity to build

Top Management Message

Expression through Collaboration. Development Models Incorporating a Message to Society.

The joint development with Claudio Colucci is a translucent
anthropomorphic silhouette speaker system. The translucent
case, which changes depending on
the layers of the top lamp, is a mystical

Economic Report“squeezophone360º”

expression like the permeation of skinand cells, and evokes a feeling of thetechnology to fuse sound such as is
enveloped by nature and the light that
Claudio Colucci expresses.

Highlights

life-force. This product uses Kenwood“nuvola”
This is a speaker system that creates a free and liberating
space through which sounds blow like overhead winds.
Tranquil and mild changes create a relaxing time.
This product is suited to various spaces, from personal
spaces to public spaces such as art galleries where many
people gather.

This speaker system enables the listener to experiencemusic not just with their ears, but with their body.
You can listen with your entire body through direct contact

Social Report“HUG”

with your arms, chest, stomach, and face.
This product enables you to learn the pleasure of musicexperience the soaring emotions of music transmitted fromthe body for people who are physically disabled.

The JVC and Kenwood design departments exchange information through workshops to jointly propose
lifestyles with great environmental merits and designs with mutual respect of each other’s skills.

13

Environmental Reportfrom even the slightest sound vibrations, as well as toCorporate Governance
The management at JVC KENWOOD Holdings believes that increasing the efficiency and transparency ofdecision making through enhanced corporate governance is a crucial part of improving corporate value.
To achieve this it is fundamental to strengthen and expand corporate governance by implementing agroup-wide internal control system. To improve our internal safeguards, we divided the policymaking
Top Management Message

and management functions, employed outside directors and corporate auditors, and established an
Internal Auditing Division.

Conditions for Establishing Company Functions, Internal Control Systems, and Offices for Risk Management
Internal Functions

Conditions for Establishing Internal Control
Systems and Offices for Risk Management

Economic Report
Highlights
Corporate GovernanceThe board of directors makes fundamental and strategic
decisions, and they are responsible for supervising theexecution of operations. They meet once a month, ormore in special cases, to deliberate and vote on the basic
policy of management and other important matters, andmonitor and supervise the state of corporate affairs. The
members of the board are given one year terms, whichkeeps responsibility clear and management agile. Clarity
in decision making is achieved through the proactive
appointment of outside board members.
JVC KENWOOD Holdings has introduced a new executive
officer system. The executive business function has
been divided and the responsibility for management andoperations has been clarified. From June 2009, there
have been nine members on the board (two of whom areexternal) and seven executive officers (four of whom arealso on the board). Furthermore, with the introduction ofa system of executive officers holding managerial duties,
managerial duties will be removed from directors. In
addition, the presidents of each company will be madeboard members to promote the integration of groupmanagement.

The following systems have been established to ensurethat the group business practices of JVC KENWOOD
Holdings are appropriate.
1. A system to assure that the execution of the duties of theboard of directors complies with the law and company bylaws.
2. A system to keep and control information related to executionof the duties of the board of directors.
3. A system or regulations and rules to control the exposure toloss.
4. A system to assure the effective execution of the duties of theboard of directors.
5. A system to assure that the execution of the duties of
employees complies with the law and company bylaws.
6. A system to assure the appropriateness of JVC Kenwood
Group business.
7. A system for employees that assist with the duties of auditors
and rules that keep these employees independent from theboard of directors.
8. A system for the board of directors and employees to report
to auditors and a format for the reports.
9. A system to assure that the audits of the auditors are done
effectively.
10. A system to assure that tax reports are correct.

Conditions for Internal Audits and Auditing the Auditors

Social Report
Environmental Report

Auditors will work on their own initiative as well as attend
board meetings. They will monitor the audits done by theInternal Auditing Office for the operations of the entire
group, and meet with the Internal Auditing Office to shareand check information.
Auditors will hold meetings of the Board of Corporate
Auditors, supervise directors, monitor the execution ofoperations of the entire group, handle accounting, andfunction as an internal auditing office. In addition, they will
receive accounting reports from the accounting auditors
in periodic Board of Corporate Auditors meetings and will
work to improve their effectiveness by linking the various
audits.
The five auditors (three of whom are external) will assume
these duties starting June 2009 and the Board of Corporate
Auditors will meet once a month or as necessary.

JVC KENWOOD Holdings internally audits all normal
business operations throughout the group. Six auditors are
assigned to an Internal Auditing Office to carry out internal
audits and report to the board of directors. Because they
are auditing the entire group, the Internal Auditing Officecreated a “risk assessment chart” and uses it to selectsubjects to audit and to create an auditing plan that is
highly effective.
Auditing the auditors is done according to the auditingplan. Besides auditing the entire group, they also checkinternal documents and monitor the directors andexecutive officers. They expand the auditing of the auditors
by, among other things, accompanying the auditors inauditing the Internal Auditing Office.

14

Corporate GovernanceCompliance supervision was established under the legal
and intellectual property departments to promote a unifiedcompliance system throughout the group.
Legal affairs supervisors and subcontract legal affairs
supervisors are assigned to business departments andcompanies under the group’s umbrella.
The legal affairs supervisor implements daily complianceactivities and undergoes periodic high-level training
focusing on core educational activities and actual
contracts related to legal compliance in each department.
The subcontract legal affairs supervisor monitors theirown departments to make sure there are no transactions
abusing preferred positions with business partners, andconstantly safeguards legalities.

Highlights

than just listening to lectures. The students actively voice
their opinions, using the case method to examine actual
situations. These methods are being tried in the latest
JVC Kenwood Group employee training. Further, “Safetyassurance export management” is implemented usinge-learning methods.

Specific Promotion System

Compliance training

The idea that compliance equals legal conformity
originated from an increasing severity of in-housecorporate regulations. As a result, people just stopped
thinking and thought they could just follow the form of thelaw and strictly follow in-house rules. With this perspectivein mind, in 2009 we are giving top priority to creating asystem for educating staff in the skills to correctly obey thelaws while being sensitive to the “needs of society” whichis the intent of the laws and regulations.

Social Report

A “compliance guidebook,” “information security guide,”and “personal information guidebook” have been
distributed to all departments and all employees under thegroup umbrella. Employee training, such as new employee
training seminars, information security seminars for major
departments, subcontract law conformance seminars, andcontract affairs seminars are held as necessary.
The seminars produce good results as students learn byinteracting with instructors using a Socratic method, rather■ Corporate Governance System Diagram

Shareholders meeting
Appointment
and removal

Appointment and removal

Accounting Auditor
Financial
Audit

Appointment and removal

ReportReport Board of Corporate Auditors (5 members) Audit(3 of whom are external)
ReportReportInternal Audit

Selection/dismissal
Audit

Audit

Duty and diligence towards good management

Board of Directors (9 members)(2 of whom are external)

Oversight and direction

Selection/dismissal

Executive Officer
Committee

Chairman of the Board & President
Chief Executive Officer

Environmental Sustainability OfficeInternal Auditing OfficeCompliance Committee
Information Disclosure Council

Execution

Environmental Board

Holdings Departments

PL Board
Operating Companies

Operating Companies

Operating Companies

JVC Kenwood Group Departments

15

Corporate Governance

FY 2009 Compliance Activities Targets

Public Relations Department

Environmental Report

Specific Promotion System

Economic ReportJVC KENWOOD Holdings does not think that compliance is merely “obeying the law.” Compliance means“responding to the needs of society.” That is to say, the objective is not just to obey the law for its own sake.
By obeying the laws we respond to the needs of society, which is the underlying purpose of the law, and is thegoal of compliance as we understand it. Therefore, we created our compliance committee on January 1, 2009
to promote compliance activities with this in mind.

Top Management Message

Thorough ComplianceSocial Report
The JVC Kenwood Group is communicating with stakeholders to continue to maintain high customer
satisfaction and provide products and services as responsible members of society.

Top Management Message

Stakeholders

Economic Report

While reflecting customer feedback andunique ideas, our products and services
are created through our corporate visionof “Realize the unconventional(Katayaburi wo katachi ni).”Highlights

We are developing a procurement
system that facilitates fair andimpartial business deals thatadhere to green procurement
guidelines for viable growththrough collaboration.

Customers

Stockholders andinvestors

Business partners

Corporate Governance

JVC Kenwood
Group

National andlocal government

Social Report

Delivering products inaccordance with all regionallaws.

We are working to secure
appropriate profits and provide areturn on investment by building
our business.We are publicly
reporting company information in
an appropriate manner throughshareholder meetings, annual
reports, and our home page.

Local communities

Consortiums

Employees

Actively contributing tolocal social activities tohelp make our company
more a part of local
communities.

Kenwood is working to increase
the satisfaction of every
employee by creating an open
corporate culture and a stable
work environment where
employees are excited to work.

Helping to develop new technicalstandards through active
participation in industry groups.

Environmental Report16Social Report

Being a global company, the JVC Kenwood Group holds various events in each country to interact with many
stakeholders.
Interacting with Customers at Product Study Meetings

Interacting with Customers in Showrooms
Showrooms are not

When a new product comes

just a place to explainout, product study meetings

our products. They areare held in each country

important venues wherefor retailers and dealers.

we can listen to what

Besides teaching about thecustomers want and showfeatures and functions of thethem first hand how to use our products.

new product, we also listen

Car electronics product study
meeting in S. Africa.

Economic Report

Connecting with customers

Top Management Message

Working with Our Customers

to their wants and deepen
product.

Seminar for designers in Japan.

Highlights

their understanding of theInteracting with Customers at Trade Shows around the WorldThe JVC Kenwood Group provides a booth at trade showsin various countries such as CES and IWCE in the U.S. to

Everio camcorder study meeting in Egypt.

Interacting with Customers Through Sports PR
We give excitement and inspiration to customers in various
countries by promoting sports. We support a NASCAR

CES in January 2009 in the U.S.

Corporate Governancemeet many customers while introducing our products.

racing team in the U.S. and we are the main sponsor for
events by providing audio and visual equipment.

IFA in August 2008 in Germany.

CEATEC in September 2008 in Japan.

17

Bicycling in Spain.

Beach soccer in Italy.

Curling in Canada.

NASCAR racing in the U.S.

Environmental Report

IWCE in March 2009 in the U.S.

Social Reportbeach soccer and other events. We also support sportingGiving our Customers Peace of Mind
The JVC Kenwood Group is going the extra mile to improve the quality of products throughout their entire
lifecycle, from planning, to production, shipping, sales, use, and disposal, all to provide products that people
Top Management Message

will love and can use worry-free for many years.

Assuring Product Quality

Products Reflecting Customer Feedback

Economic Report
Highlights

To obtain maximum customer satisfaction, the JVC

To earn maximum customer satisfaction with our products

Kenwood Group works with all of its employees to offerand services, it is important to reflect more customer

high-quality products and services. Our vision is tofeedback into products and services. This is to establish aprovide our customers with a pleasant surprise and lasting

quick and close relationship of trust with the customer.

impression with our products and services.

To help reflect customer feedback into products, weAlso, to offer the same high product quality to theimplement product development centering on thecustomer regardless of where the product wascustomer, based on the concept of “Human-Centered

manufactured, all

Design Process.”of our operation

Among various product development processes, besides

bases in Japan

using everyday

and overseas

feedback fromhave received ISO

customers, we

9001 certification

also conduct

for product quality

surveys withmanagement

customers or

Product review and product connection evaluation.

Corporate Governancesystems. Our

monitors inside

car electronics

and outside theoperation also

company. We also

has TS16949

conduct usability evaluations with prototype products.

certification.

After understanding how users actually use the productAll new products

and understanding their wants and needs, we plan,undergo a myriad

design, and evaluate the product.

of reviews after
the product design

Parts certification using an electron microscope.

and evaluation and before it goes into production. The
product is inspected from the customer’s point of view, forSocial Report

operation, safety and servicing ease, and for any problems
which occurred before.
Product quality also hinges on the product’s parts. A
system to approve and standardize the quality of parts
is also in place. Parts which passed quality evaluations
are registered as standard parts and incorporated in thedesign to improve product quality.

Environmental Report

Also, by collecting product repair data from all countries,
we can analyze the statistics and promptly identify signs of
product-quality problems. This feedback is then given to
the product development department. With this productquality data analysis system, we can prevent the problem
from occurring again.

18

User tests.

Social Report

Improving Customer Satisfaction
Improved Product Service System
Our service division provides training for customer support

with the motto, “Be correct, kind, and prompt.”and servicing skills. This lets our employees provide quick

To handle the increasing number of customer inquiries

and precise service to increase customer satisfaction,and technical questions about digital equipment, we aretrust, and peace of mind.

improving our knowledge database and training personnel

We also provide support to retailers by supplying parts andto attain a higher level of digital equipment expertise andproviding technical guidance.

customer support skills. In addition, for new products, we

In addition, the large

maintain a close link with the relevant departments so weamounts of service

can promptly inform them about any signs of problems

information in the market

concerning product safety or quality as discovered byis quickly circulated withincustomer feedback.

the company to improve

We also use a customer feedback information system tothe quality of products.

sort and analyze customer questions and demands. Then

The JVC Kenwood Group

we forward the information to the relevant departments.

is actively working toThis feedback is used to improve products and services.

save the environment

Economic Report

The customer relations department responds to customers

Top Management Message

Complete Customer Support

corporate environmental
guidelines. Our business isenvironmentally conscious

Service center.

Highlights

based upon ourand conforms to ISO 14001. We instituted the use of leadOutside Japan, the local sales and product-servicing

Customer relations department (Germany on the left and Japan on the right.)

companies faithfully carry out sales and servicing in theirrespective areas.

Being in the Customer’s Shoes• Award system

Corporate Governancefree solder in early efforts to protect the environment.

Once a year, the “Product Creation Exhibition” is held for employees. In the “Customer’s Viewpoint” category, an award
is given to products which contributed to the company’s business and satisfied users reflecting customer feedback in• Encouraging official certification
To nurture personnel who put the customer first, we annually produce employees who obtain certification as aconsumer-living advisor, consumer electronics advisor, or engineer.

Social Report

the product’s development.

All employees, including technical staff, undergo the experience and training of
directly hearing the customer’s voice at the customer support center. This is tohelp them realize the importance of customer service. The top executives also
have dedicated customer support desks so they can directly hear customer
feedback themselves.

Experiencing the customer support center.

The technical staff also trains and works at the service department to help them
design better products.

19

Environmental Report• Customer feedback experienceProviding Enticing Products through Our Core BusinessWe contribute to society through our work by providing inspiration and happiness with the products people
use in their daily lives. This is the JVC Kenwood Group’s responsibility to society. Ever since our founding, we
Top Management Message

have refined audio, visual, and wireless technologies to create products that satisfy our customers.
Professional Equipment at Work Around the World
There are many people working everyday to maintain the safe living environment in our communities that we take for granted.
For example, large shopping malls, schools, police stations, fire departments, and rescue teams are supported 24 hours a
day by public-address systems, security cameras, wireless communications, and more.

Economic Report

Public-address and Security System for Safe Schoolssmooth operation and clear picture. The Ministry also

To provide a safe learning environment for students,

highly favored the Digital LMR for its high reliability, private

many schools are using the Emergency Communication

communications function, and low noise. This is why the

PA System that incorporates a security recording systemsystem was chosen for the summit.

developed by JVC and an FM transceiver developed by

JVC
Surveillance camera“TK-S686" series

Kenwood. The security system monitors and records
all areas of the school with a clear picture day andnight. During emergencies, the FM transceiver can beHighlights

used to make school-wide announcements or to orderInternational Media Center
Shin-Chitose Airport

evacuations. The FM transceiver can also be used for

Toyako Windsor Hotel

Kenwoodordinary communications between the school office andDigital LMR “NEXEDGE TM” series
200 portable wireless devices andthree base units usedschool grounds to support a safe school environment.
JVC: Security monitoring/recording system

Corporate Governance“VoIP Radio Dispatch System” Wireless Transmitting
Via the Internet
Zetron, a Kenwood Group company producing wirelesssystems in the USA, developed the “VoIP radio dispatch
system.” This system connects wirelessly to an IP networkby using VoIP technology on LAN and WAN to transmit
voice data between a base unit radio and a PC. By justSocial Reportinstalling an application in a normal personal computer it ispossible to make operations more efficient and to reduce

Kenwood: Emergency school PA systemlabor and costs for system configuration, eliminate areas
Surveillance Camera and Digital LMR System Used atwhere transmission is not possible, increase the area

the Hokkaido Toyako G8 Summit

customers need to communicate, and control transmitters

At the G8 Summit held at Lake Toya, Hokkaido during

in remote areas.

July 7-9, 2008, the TK-S686-series surveillance camera
Environmental Report

Special low-power
radios for local
base units

developed by JVC and the NEXEDGETM digital LMR
system developed by Kenwood helped to support the
Router(SW/HUB)

operation of the summit meeting.
The surveillance camera was highly rated by the Ministry

Internet connectionof Foreign Affairs for its almost unnoticeable silent andSpecial low-power
radios for local
base units

Special low-power
radios for mobiletransmitters

Special low-power
radios for mobiletransmitters

Gateway
JVC
Surveillance camera“VoIP radio dispatch system” developed by Zetron

20

Radio Equipment for the Police, Fire Department, andOptimum Wireless System for Communications in

Other Public Agencies

Schools, Shops, and Offices

Since its founding, Kenwood has been developing

JVC’s diverse lineup of professional, wireless microphones

radio communications equipment using high-can suit a variety of needs:

frequency technologies. It now ranks second in the∙ Portable wireless system for a compact andglobal market (centering on the U.S.) for public

lightweight public-address system.

safety communications equipment used

∙ 800 MHz wireless system compatible with the existing

mainly by the police and fire departments.

system.

Also, by conforming radio equipment closely to∙ Optical wireless system resistant to eavesdropping

the respective country’s radio-

and signal noise.

wave regulations, we can offer∙ Wireless intercom system for two-way

safety communication tools

Top Management Message

Social Reportcommunications.
Economic Report

to developing countries to suit various needs including
satellite communications.

Highly-reliable, Professional Camcorder Featuring
High Image Quality and Easy Handling

Kenwood TK-5210/5310 conforms to the P25 standard for digital public safety
radio communications used by police and fire departments and other publicagencies in the U.S.

Professional camcorders

Highlights

JVC Optical Wireless System
WT-PH50

24/7 Emergency and In-house Address System atversatile, and have higher

Large Shopping Malls, etc.

performance and image quality

Marketed in April 2008 by JVC, the EM-A842D/A822D

than consumer camcorders.

is the industry’s first digital power amp to work with

In 2009, JVC marketed the GY-HM100/700 memory card

emergency public-address equipment. Compared to an

camcorder compatible with Apple’s QuickTime file format
and MP4 format. These file formats are widely used in

amp consumes about 60%

professional, non-linear editing systems. This camcorderless power and occupies about

greatly improves usability throughout the entire workflow

80% less space. Public-addressfrom shooting to editing. It is a global product meeting thesystems, which have beenneeds of video

increasing in scale in buildings,

production.

Social Reportanalog amp, the digital power

Corporate Governanceneed to be quicker, more

can now be made more compact.
It helps to create apleasant and reliablesound environment.

JVC Memory Card Pro HD Camcorder
GY-HM700

Environmental ReportJVC Digital Power Amp for Emergency and Office Broadcasting
EM-A842D/A822D

21

Swing Journal Magazine’s Jazz ComponentAward for High Audio Quality

All-in-one Navigation and Entertainment System
for Safe, Enjoyable, and Ecological Car Life

Top Management Message

Today’s car navigation systems have become essential

In January 2009, Kenwood’s Prodino digital amp andinformation terminals as they provide the latest roadspeaker system

information, local news, digital

and JVC’s SX-

terrestrial broadcasting, andM3 and SX-M7

more.

speaker systems

J&K Car Electronics has

were awarded theprestigious Jazzdeveloped a multi-function,
AV-integrated car navigation
system with a touch-panel

Commercially available all-inone navigation and entertainment
systems

Component Award

Awards ceremony.

by Swing Journal magazine,

Economic Reportuser interface that is easy to use even for beginners.

Japan’s leading jazz magazine. We

You can search the large database for local restaurants,

hope to keep offering products tointerface with ETC*, talk hands-free*, watch 1seg terrestrial

delight jazz

digital TV*, and play CDs and DVDs. It enables a safe,fans andenjoyable, and ecological car life.

audiophiles.

*In Japan only.

Highlights

The Best Coordinate System
Award to Kenwood Digital Amp
and Speaker System
Prodino “CORE-A55”

All-in-one car navigation andentertainment system for automakers.

The Best Speaker Award
Over 100,000 yen JVC
Speaker System SX-M7
Below 100,000 yen JVC
Speaker System SX-M3(Pictured is the SX-M7)

Everio Camcorder, Well-received Around the World

Corporate Governance

JVC’s Everio camcorder was the world’s first to have a

Integrating Digital Media for Seamless, High-quality
Sound Systems, Anywhere and Anytime

large-capacity hard disk. JVC’s video technologies havebeen developed over many years. The camcorder can

J&K Car Electronics is working on “seamlessrecord long, high-quality videos at Full HD (1920 x 1080)

entertainment,” integrating iPods and other DAPs (Digitalwhile being compact

Audio Players) and digital media like USB. You can enjoy

enough to fit in ahigh-fidelity music seamlessly whether you are in the car or

woman’s hand. The

at home.

camcorder is highlySocial Report

We are providing

DAP

favored for family

products thatuse.

customers can use

It is also the world’s first camcorder that can easily uploadstress-freevideos to YouTubeTM. Customers are very happy with ourUSB

yet thatcamcorders.

supportVideos can beCD

the new
Environmental Reportvalues andeasily uploaded toYouTubeTM.

Car audioPC

needs that are
emerging fromthe advancement

Home audio

Everio camcorderof technology, media, and information services.

22

Speaker System Jointly Developed with aLighting Maker

High-Level Mastering Technology for Top Sound
Quality Combined with Top-Quality CD Materials

Together with ODELIC Co., Ltd., a maker of lighting

On April 22, 2009, as part of JVC’s 80th anniversary of its

fixtures, Kenwood has developed a speaker system foraudio division, three titles manufactured with the “K2HD

high-fidelity sound based on the concept of “Reproducing

MASTERING + CRYSTAL” top-quality CD made of glass

the Original Sound.” Designed to suit the space andand pure gold were marketed. They were limited editions

interior of the home or shop, attractive lighting and quality

for customers who pre-ordered.

speakers make for a relaxing space.

The glass CD was jointly developed by Victor Studio andMemory-Tech Corporation, which possesses glass-CD
manufacturing technology.

Top Management Message

Social Report

nowhere else in the world,
garneredmuchattention
among
audiophiles.

A wireless system mounted on lighting rails can be
configured in various ways.

Logo for Victor
Entertainment’s 80th
anniversary.

Made of glass and pure gold, the“K2HDMASTERING + CRYSTAL” topquality CD is nicely framed.

Economic Report

This top-quality glass CD, seen

Universal design aims to make products and services easy
to use by everyone, regardless of their age and whether
or not they have disabilities. As the population ages, theindustry’s first 100/120 Hz Clear Motion Drive and realdesire for stress-

36-bit video processing. It also has developed XIVIEW

free products which(sΛIvju:), the next-generation, super thin LCD TV which is

can impress andthe world’s lightest. The

comfort the elderly

32" LCD TV is 6.4 mm

is becoming greater.

thick and weighs only 5

While listening to

kg, making it the world’s

customer feedback

lightest. It is also more

and having theenvironmentally friendly.

cooperation of

The thin and lightweight

welfare agencies and nursing homes, we are developing

LCD TV can be hung on

products which anyone can easily use and enjoy.

Corporate Governance

JVC has been a step ahead in video technology with theInternational home care and rehabilitation exhibition
Talking to customers directly to find out what theywant and reflecting it in products.

a wall or hung from theceiling, enabling interiorSocial Report

XIVIEW, the World’s Lightest Super Thin LCD
TV Offers a New Lifestyle

Highlights

Universal-Design Products Make Life Better

this impossible. A new
lifestyle is possible as theEverio camcorder designed to beeasy-to-use by all.

Simple remote control with large
buttons and markings for peopleof all ages.

Headphones have a small bumpon the right side so even visuallyimpaired people can distinguish theright headphone.
This is an international standard.

Radio designed for easy operationand easier listening for the elderly.

customer enjoys a beautiful
picture.

World’s lightest (5 kg) 32" nextgeneration LCD TV only 6.4 mm thick.

23

Environmental Reportlayouts which were before

Working with Our Employees
Top Management Message

The JVC Kenwood Group is striving to create various training systems and worksite environments to forge
vibrant workplaces overflowing with energy and a sense of unity. These workspaces foster growth throughthe personal achievements of each and every individual, and in them the course of action is “Perpetual reform
centered on each and every individual” which leads us to our corporate vision to “Realize the unconventional.”

The Results of Involving all Employees as a Team

Economic Report

Receiving the “Innovation Excellence Award”

to US economic growth

In October 2008, the Kenwood Singapore plant wasin the 1980s, and it isawarded the Innovation Excellence Award, which is thea prestigious award to

departmental award of the Singapore Quality Award ofwhich equally rigorous

the Singapore government. It acknowledges the quality

standards of examinationof business management

are applied. This award isthat supplies excellent

evidence of reaching internationally high standards as agoods and services. This

result of innovative activities by all employees as a team,award is modeled on theand of reforming management, and improving quality andMalcolm Baldrige National

development skills, and of engagement with environmental

Highlights

Quality Award, which wasawarded for contributing

Conclusion of the award ceremony

problems.

Singapore plant chairman speaks of
his delight at receiving the award

Unique New Personnel Training that Fosters a Spirit of CraftsmanshipNew employee training throughout the group is

Corporate Governanceimplemented over four months before assignment, andintroduces a unique program while aiming to correctly
impart the “basics of being a member of society,” “basicsof the job,” and “basics of the company.”
Training proceeds based on the keyword “experience” toimpart an awareness of the business cycle of production
and sales.
■ Research cycle “Experiencing the manufacturing operation cycle”■ Research schedule
JVC

Product Research

Robot project research

R&D and design

Planning

Planning
Intellectual property and design

April

R&D and design

Kenwood
4-monthproject

April

Entry ceremony/Introductoryactivities
camp

Project management

Intellectual property and design

Environmental Report

Purchasing andprocurement

Product

Product

Team Activities

Team Activities

n-the-job
les training

Business

Logistics and marketing

Pyramid training (plant management)
Pyramid training (plant management)

Project
Pyramid training
management

After-sales service

On-the-job
sales training

Plant tours andon-the-job training

BusinessProduction

Logistics and marketing

Production technology
and quality assurance

Team activities: Planning andproposals for new products and services

Projectmanagement
CS training

Pyramid training

May

Purchasing andprocurement

May
Training by occupation

Training
by occupation
On-the-job
plant trainingOn-the-job plant training(Technical, clerical, or manufacturing)(Technical, clerical, or manufacturing)

June

Robotflow)
training (manufacturing flow)
Robot training
June (manufacturing

On-the-job sales trainingOn-the-job sales training

Plant tours andon-the-job training

sales training
On-the-job sales training On-the-job
On-the-job manufacturing

Production

On-the-job manufacturing
training (FMEA, VE)

training (FMEA, VE)

Production technology
and quality assurance

July

July

Pre-assignment training

Pre-assignment training

Training review, culmination, and assignment (corporate figures, business manager, etc.)

Training review, culmination, and assignment (corporate figures, business manager, etc.)

244-month project
activities

Project management“Learn”, “see,” and “touch” thecompany,and products“Learn”,“see,”office,and “touch”
the company, office, and products

ining

es service

Product Research

Kenwood

JVC

Entry ceremony/Introductory camp

Team activities: Planning andproposals for new products and services

Social Report

Robot project researchSocial Report

Introduction Camp

Pyramid Production Simulation

The camp for all new employees is held with the aim ofPyramid production simulation research lets people

enabling everyone to be aware that there are no gaps

experience and be aware of the importance of the

between the companies, and to act on one’s own ideas

teamwork of each employee in the organization bywith the awareness of each individual’s involvement.

understanding the way a

Experiential learning programs, done mostly outdoors,

manufacturing company isaimed to have everyone work together while cooperating

operated.

and sharing ideas in mixed teams.

Each group plays the roleof a factory. Within their

Top Management Message

Main research

factory groups, they decide
Pyramid Production Simulation

does based on the leadership of the plant boss. Then theycreate a specified pyramid (product) on paper and deliver
it on time with zero defects. This lets them experience firsthand the importance of QCD (quality, cost, and delivery) as

Economic Reporton which jobs each person

they learn how to create a profit and loss (P/L) sheet andthe basics of our business cycle.

Both researches are coveredby the basic work “PDCA,”
and so the importance,
Product Research

enjoyment, and difficulties

Product research analyzes products from all angles suchof teamwork during projectas using audio products, which are strengths of both JVC

activities are learned by

and Kenwood, performance and design, ease of use, andusing the systematizeduser manual comprehension.

“PMBOK (Guide to the

Each group freely operated,

Project Management

listened to, or disassembled

Body of Knowledge)”the product, and then inas the basic teaching

the end announced theirmaterial. The objective is toresearch findings thatdeepen understanding by“having these products

experiencing part of the manufacturing process.

Discussing ideas for commercializing
robotsRobots being test driven after software
uploadwould be fun.”Team Activities
Team activities let each team plan and propose new“unconventional” goods and services that are part ofSocial Report

Introduction camp

Corporate Governance

Highlights

Project Management Research and Robot Research

the corporate vision. Each team trains for four months
considering both customer needs and technical seeds
Environmental Report

while imagining unique products and services that havenever been seen before.
This is the culminationof their training, andAnnouncing the research conclusion that“having these products would be fun.”presentations are given to

Detailed product research while listening
to advice from senior employees

each division at the end of
July when the training ends.
Planning and proposing new goods
and services during team activities

25

Health and Safety
Health and Safety at Work

Mental Health Care Training

Top Management Message
Economic Report

The JVC Kenwood Group creates a culture of health andWith the increased concern about mental health measuressafety by focusing on human dignity and doing businessin the workplace, we need to show greater concern forbased on the stance of observing the law, creating achanges in those around us and be aware of the correct

workplace to grow abilities, and managing risks.

way to handle

Amidst the concerns of falling productivity as themental healthworkforce ages

issues.

and seasoned

To enable theemployees retire,

management

the JVC Kenwood

to correctlyGroup is aiming

understandto establish

mental health,a corporate
atmosphere

Mental health care training

each employee is trained to be aware of and correctly
understand stress. Newly appointed executives are trained

Safety and health trainingthat prioritizes the health and safety of the workers. To

through line-care centered training, and new employees

prevent workplace accidents, the JVC Kenwood Groupare trained in self-care during orientation.

is promoting risk assessment to reduce health risks
Highlights

Countermeasures against Overwork

from chemicals and physical injury from machinery andequipment. Our hope is to go from zero accidents to zero

Doctors specializing in labor and industry monitor therisk.

health of workers by providing consultations and checking
on workloads. Countermeasures such as shortening the

Risk assessment
Corporate Governancework hours are implemented based on their evaluations
Risk assessment is the procedure to evaluate risks by

and judgments, as we strive to prevent damage to healthdefining thedue to overwork.

danger and

To shorten work hours andharm in the

reduce overtime, emails areworkplace and tosent to employees and publicprioritize and takeannouncements are made on

countermeasurescertain days telling employees

Social Report

to reduce risk.
Using input fromto go home on time.
Risk assessment training

workers, we study each worksite to assess the risks
in order to achieve a level of “zero risks” because it isnecessary to create more applicable measures to prevent
injury.

Environmental Report26Social Report

Promotion of Green Procurement
When JVC and Kenwood

as well as throughout the life cycles of the products

merged in October 2008,

it manufactures and sells, the JVC Kenwood Groupthey established a new unified

considers it important to

JVC Kenwood Group, “Greengive priority to materials andProcurement Guidelines.” These

products that have the leastguidelines are the basis forenvironmental impact.

working with our trading partners

Further, the social

to lower environmental impact by actively promoting the

responsibilities and demands

green procurement of materials, parts, and products inof corporate activities in global environmental preservation,compliance with regulations in countries around the world.
Highlights

To reduce the environmental impact of its businessEconomic Report

The JVC Kenwood Group is promoting environmentally-friendly product development and the developmentof a sustainable economy through the creation and strengthening of environmental management systems as
an overall supply chain including our trading partners as well as to fulfill our social responsibilities as a “green
company.”

Top Management Message

Working with Our Suppliers

such as strengthening laws starting with REACH, aregrowing in importance.

and management ofand so we share information through Green Procurement

pollutants, we are actively

Guidelines explanation meetings with our suppliers.

working with our partners

As part of our pursuit of environmental preservation into help preserve thethe JVC Kenwood Group, we require all our suppliers toenvironment.

have a certified environmental management system that

Meeting explaining the Green
Procurement Guidelines in Japan inNovember 2008

meets ISO 14001 standards. Through our environmental

Meetings explaining the Green Procurement Guidelines throughout Asia in November and December 2008; from the left: Singapore, Hong Kong, Malaysia, Shenzhen

27

Social Reportmanagement system

to promote environmentally-friendly green procurement,

Environmental Report

Partnership with our trading partners is indispensable

Corporate GovernancePartnership with Suppliers

Acting Locally
The JVC Kenwood Group aims to be a good corporate citizen in local areas where we operate, so we hold
Top Management Message

various activities to deepen our relationship with the local communities.

In Japan

Visiting JVC Clean Center

Economic Report

Participating in the “Children’s learning
plaza” as part of local communication

In December 2008, 63 people from the South
Office of the
Yokohama Resource Recycling Bureau paid astudy visit to
the recycling facilities (clean center) at the JVC
head officeplant. These facilities separate, disassemble, andprocessresources with the objective of zero waste emiss
ions, and weare involved in recycling 100% of the waste created at thehead office plant. This was a learning opportunity
to deepen
understanding of the municipal environmental
promotioncommittee as a cutting-edge facility
for recycling activities and reducing
waste, which is promoted by thecity of Yokohama. Further, the JVC
head office and plant, together with
the Kenwood Yokohama BusinessCenter, was designated a FY2008
Yokohama Environmental Action
Award “Excellent (Three-Star)
Garbage Separation Office”by the Green center at JVC’s head
office and plant (top) andcity of Yokohama.*See Page 34.
visitors inside

The Kenwood Yamagata plant made candles from wasten’scooking oil as part of our staff participation in the “Childre
EPSON
U
TOHOK
by
red
sponsowaswhichlearning plaza,”s
CORP. in August 2008. During the introduction of activitie
riveralike the family water quality survey and the Akagaw
themouth cleanup (monitoring survey), people learned that,
oceansthepollutes
also
waste oil flushed from their homesoil.
cooking
waste
from
and they made candles

Highlights
Corporate GovernanceChildren making candles from waste
cooking oil

Social Report
Environmental Report

Yamagata Prefectural Environmen

hildren’s science andVolunteering for the “Cp”
engineering worksho

In January 2009, the Kenwood Yamagata plant welcomeda group of approximately 40 and peop
le from 23
companies, including members of
the Yamagata Prefectural
Environmental Preservation Committee. This study visit
is held every year to exchange infor
mation, learn about
cutting-edge methods to protect theenvironment that areused at companies that have won
the Yamagata Governor’s
Environmental Preservation Promotion
Award*
Participants were very interested intechniques for improving
efficiency in production
in relation to the agingof the workforce aswell as methods tocontrol temperature andhumidity.

staff
Nagano plant technical
In June 2008, Kenwood
the
in
s
che
coa
engineering
participated as volunteer
king a
ma
:
hop
rks
wo
g
engineerin“Children’s science and
gano
Na
the
by
d
nne
pla
s
nt wa
wrestling robot.” The eve
nte
Ce r withTechno Valley Regional
Techno Foundation Ina
uring andning interest in manufact
the objective of awake
children’s
thein
would like to mainta
science in children. We
acturing.
ongoing interest in manuf

Preservation Committee Tourtal

*See Page 34.

rs coaching
Nagano plant engineetschildren to build robo

Visitors observing environmental
protectionin action

28

Children playing withrobots they built

wrestlingSocial Report

ersityContributing to Biodiv● JVC Head OfficePond” as a biotope
n operating “Dragonfly
Since 2003, we have beesponsored byforest building project”
in support of the “Keihin
Yokohama.
d”

Biotope “Dragonfly ponta Plant● Kenwood Yamaga

in beachfrontin sharing information and
We are actively involved
agata ocean
Yamticipate in the “beautiful
cleanup activities and par
academic groups
nt, citizen, industry, andplatform” with governme
e washing up on oursing problem of garbag
trying to solve the increa
ebrates its third year as
river mouth cleanup celshores. The Akagawa(civilian) Sakata NPO,
vernment) branch office,an alliance of Shonai (goployee parent-andthe forth year of the em
and local business, and.
child water quality survey

Akagawa river mouthcleanupDesertActivities throughSupporting Project KDES 2008
tions, and 8J1AX
JARL, Special Amateur Radio Sta

Participation in Local

Green Activities

All plants and offices par
ticipate in volunteer act
ivities suited
to the local region. We
picked up discarded cig
arette butts
and empty cans hiddenin the bushes along bus
y local roads
and on the way from thestation to work. We also
participate
in local environmental bea
utification activities suchas raisingseasonal plants in flow
er beds along the roadsi
de.

Experimental Station)*” tests a“Project KDES 2008 (Katsuura Dishns, such as bouncing EME
variety of amateur radio communicatio
ce using a parabola antenna withtransmissions off the Moon’s surfa
built at Katsuura Tracking andan 18-m diameter. This antenna wasn Aerospace Exploration Agency
Communication Station by the Japa
(JAXA) in April 2008, andKenwood loaned them a TS-

2000SX amateur radio, whichuses high-frequency technology
developed by Kenwood overmany years.

JVC clean activities;

left: Yamato plant, right: Yokosuka plant

Corporate GovernanceGreening the Horchin

Social Reportthen involved in greening
Since 1994, we have beein the2008 we planted trees
Chinese deserts, and ine,local NGO staff. To dat
Horchin Desert alongside
to
d
ute
trib
trees and con
we have planted 17,100
2.
greening 38,000 m

Highlights● JVC Labor Union

Top Management Message

nature and biodiversity.

Economic Reportis involved in protecting, and is active from April
amateur radio station continuously*This project uses the special JARL
ies,” “improving theactivittion
purposes of “youth educa
1, 2008 to March 31, 2010, for thebase of the amateur radio
the
nding
“expa
and
s,”
stationradio
technology of Japanese amateurworld.”

29

Environmental Reportup
The JVC Kenwood Gro

Kenwood Abroad      Top Management Message

Supporting Youth So

ccer Tournaments
through Volunteer Ac
tivities
In May 2008, union

employees from thethe “KEGU FRIEN

Malaysia

Implementing Social Welfare Activities
during Environment Monthvolunteer staff fro

m Japan and

Kenwood Malaysia

plant fully support

ed

Economic Report

DSHIP CUP” Johor regional youth sotournament, whichccer
is sponsored every
year by the Kenw
Group Union (KEoodGU).
Ten junior high tea
ms selected fromthroughout the sta
participated in thetetournament. They
co
op
era
ted
wi
th
Ministry of Youththeand Sports, Malay
sia aiming to help
children becomethestronger in mind
and body.

In Malaysia, “environment month”

Malaysia

is held in September every

year.

plan to have the
The JVC Malaysia plant created a
unt of waste paper theyamo
thedepartments compete overnt that collected thertmerecovered, and awarded the depa
most waste paper.
The funds obtained fromthese waste paper recycling
activities were donated to
the “Monfort boy’s town,”

Highlights

Employee volunt

eer staff

an education support
group for disadvantaged
the children a technicalchildren in Kuala Lumpur, to provide
Winning penalty

education.

kick

Corporate Governances after
Disaster Relief Activitie
rthquakethe Sichuan, China, Ea

Hosting Plant Tours
China

Social Report

In September 2008, theKitakyushu National Co
llege ofTechnology, TEMASEKPOLYTECHNIC, which
is a juniorcollege in Singapore, andKumamoto National Co
llege ofTechnology, which bot
h schools have signed
an exchange
agreement with, visitedthe Kenwood Singapore
plant. They
enthusiastically studied
the innovative production
activities
and processes at the pla
nt
from design to production,
and asked many questions.
We will continue to strive
to be
a company where all stu
dents
would like to work.

affected byai plant was not directly
The Kenwood Shangh
tely 100thquake, but approxima
the Sichuan, China, ear
g in Sichuan
in the City of Chongqin
employees were bornof thecerned about the status
Province, and were condisaster locally.
yees, which arecalled for by the emplo
We collected funds as
the Red Cross
relief activities throughbeing used in disasterin Japanr, the Kenwood Group
Society of China. Furthe
as quickly as
truct the disaster areas
also pledged to recons
in Sichuan
LMRs to the authorities
possible, and donatedEnvironmental Report

Province,
Students enthusiastic
ally listening
to explanations

andprovidedfinancial aid
togetherwith theunion.

es donating

Shanghai plant employe
money

30

l

In March 2009, the 23rd “Sakura
festival” was held in
Tuscaloosa in Alabama. The JVC
America plant introduced
many people to Japaneseculture by providing traditional
Japanese snacks such as“Osenbei” and “Ame.”

Providing traditional Japanesesnacksfunds they raised.

tion

America

Blood Drive Participa

ationscooperates in blood don
The JVC America planta medical
ted blood is donated toevery quarter. The collec
ited Bloodbama, through the “Uncenter in Tuscaloosa, Alaughout thethrolss blood to hospita
Services,” which supplie

sh Project”

ing in the “Car Wa

United States.
s
JVC Latin America sale
ated
ticip
par
also
companies
,
day
or
don
in world bloodod
bloand cooperated in
JICA
donations sponsored byy ofand the Panama Ministr
Health.

Participating in Social Day

In July 2008, the local

Social Security Office ines donating

JVC America employeblood

MexicoParticipation in Tijuana BeachTijuana

Cleaning Activities

hosted “Social Day,” asthey do every year. The
JVC Mexico
plant provided family pla
nning support and infe
ction-testing
services to support anincrease in the quality oflife andhealth of local residents.

MexicoAiming to root the company more firmly in the local
community, the JVC Mexico plant launched a cleanup of
Tijuana’s beaches in July 2008.
Employees and their families participated so that local
residents and tourists can enjoy the coast, and two tons ofgarbage were collected.

Tijuana residents rece
iving haircuts and infe
ction-testing
services

Cleaning up Tijuana beaches

31

Social Reportployees participat

JVC America em

Highlights

edplant has support, the JVC America
ars
ye
17
st
pa
orts
For theaign, which suppe” fundraising campisthe “Relay For Lif
d
an
er,
nc
battling cafamilies who arerchMa
the sick and their
In
S).
Society (ACAmerican Cancer
thetedsponsored by thenaProject,” and do
ed the “Car Wash
2009, they plann

Corporate Governance

America

Environmental Reportfor Life”
Donating “Relay
e Funds
Car Wash Servic

America

Economic Report

Participating in the Sakura Festiva

Top Management Message

Social Report

Environmental ReportJVC KENWOOD Holdings Basic Environmental Policy
Top Management Message

E n v i ro n m e n t a l P h i l o s o p h y
JVC KENWOOD Holdings is totally involved in the global environment through all the group companies’
business activities, and is contributing to achieving a society where sustainable development is possible byfulfilling social responsibilities as a green company.

Economic Report

E n v i ro n m e n t a l P o l i c i e s
1. To be thoroughly aware of the environmental impact of the actions, products, and services of the entire
group, and to promote all possible technical and economic environmental protection activities.
2. To always consider the environmental impact of our business activities, and to consistently reduce ourenvironmental burden.
3. To conform to all laws, business standards, and local agreements regarding environmental activities.

Highlights

4. To use the Earth’s limited resources effectively with the aim of becoming a recycling society.
5. To reduce the burden on the Earth’s environment through product manufacturing.
6. To implement business activities that can contribute to the reduction of greenhouse gasses to prevent
global warming.

Corporate Governance

Outline of JVC Kenwood Group Environmental Activities
Self-Awareness as Corporate Citizens of the Earth

Social Report
Environmental Report

We think the greatest problem confronting humankind at the beginning of the 21st century is to continue thesustainable development of human civilization and culture while protecting the Earth’s environment. The JVC
Kenwood Group, a manufacturing company, has some effect, no matter how slight, at all levels from the planningand design stages of manufacturing to the procurement of raw materials, manufacturing, sales, and services. As
stated in our environmental philosophy and policies, we are aware of the responsibility to carefully determine theburden we have on the environment and systematically work to reduce it through a wide variety of methods.
We consider the reduction of greenhouse gasses to prevent global warming to be a major obligation that thecorporation must fulfill, and so are involved in the ongoing reduction of energy use in all our business activities.
Specifically the reduction of the energy that the products themselves use. Our research departments are putting
great efforts into developing new technologies and we have committees working laterally throughout the company
promoting various activities.
We are developing procedures based on reducing, recycling, and reusing materials in response to the depletion of
resources worldwide. We receive parts and raw materials that are compatible with the environment by publishing our
Green Procurement Guidelines, so as to confirm at purchase that there are no harmful pollutants in any of the partsor raw materials and reduce the problem of global environmental pollution.
As a responsible corporate citizen, the JVC Kenwood Group is fully aware of the global environment, and willcontinue to strive to make improvements.
JVC KENWOOD Holdings Environmental Management Director

Kiyoshi Osaki

32

Environmental Report

The JVC KENWOOD Holdings Environment Board is part

The JVC KENWOOD Holdings Environment Board aims forof our top leadership and is headed by the president ofan all-encompassing environmental management system

the holding company. This board promotes environmental

that will certify all group companies for the international

management throughout the JVC Kenwood Group. Eachenvironmental standard ISO 14001 by 2010. Until now,

operating company, production center, and production

each company in the group has promoted environmental

company sends environment conference members that

activities and been certified for ISO 14001 independently.

have the responsibility for environmental affairs as wellNow, by integrating all companies in one group, we canas specialized committee members from throughout themove from partial optimization to total optimization ofcompanies.

environmental management. Management can effectively

The policies and measures decided by the JVC

express policies to the entire group so we can coordinate

KENWOOD Holdings Environment Board are implemented

efforts and achieve positive results. Further, prompt

through environment conferences throughout the group. In

sharing of information will enable prompt compliance, andaddition, specialized committees develop specific activities

is a direct safeguard against environmental risks.

Economic ReportJVC Kenwood Group Overall ISO 14001
Certification

Environmental Management System for the
JVC Kenwood GroupTop Management Message

Environmental Management

ISO 14001: Awarded for 10 Years in a Row
JVC and Kenwood have been certified for ISO

Highlights

according to a theme for all the companies.

management systems by the Japan Audit and Certificationof the last 10 years and were awarded the 10-year Prize
for the ongoing improvements that are a result of theirJVC KENWOOD Holdings Environment Board

environmental management.
■ JVC KENWOOD Holdings Environment Board Organizational System

These efforts will continue throughout the entire group tocontribute to our society by further reducing our burden on

JVC KENWOOD Holdings Environment Board

the environment and work to stop global warming.

Corporate Governance

Organization for Environment and Quality (JACO) for eachSpecialist Committees

Social Report

Secretariat

Green Procurement Committee

Reduction of Toxic Substancesin Products Committee

Environment Conference of operating companies

JVC

Kenwood

ISO 14001 10-continuous years award

Environment Conference of group companies

Environment Conference of production centers and companies

33

Environmental Report

Product Assessment Committee

Results of Environmental Management
We are involved in various activities as a result of our environmental management policies that are establishingus as a good corporate citizen with local commitments that deepen connections and interactions.
Top Management Message
Economic Reportexhibited JVC’s
surveillancecamera and
Kenwood’s
Digital LMR
system, which
supported the“Hokkaido Lake
Toyako Summit,” Teachers being interviewed by visiting elementary
school students
in July 2008,
whose main discussion was environmental problems.
At the booth, we also hosted a quiz rally for visiting
elementary, junior high, and high school children as part ofour social education, and were able to communicate withmany visitors.

Certification from Yokohama as an Excellent Garbage Separation
Office for the Yokohama Environmental Action Award

Highlights
Corporate Governance

On December 10, 2008, the JVC head office plant and
Kenwood Yokohama office were designated for thesecond consecutive year “Excellent (Three-Star) Garbage
Separation Offices” for the Yokohama Environmental
Action Awards.
This award has been presented since 2005 to offices thatsatisfy all three of the following standards: (1) Suitablegarbage separation, (2) Thorough garbage separation,and (3) Recycling everything that is recyclable. It is for theapproximately 2,600
large-scale offices within
the city as a part of the“Yokohama G30” waste
reduction and recycling
activities that Yokohama
Excellent (Three-Star) Garbage Separation
has been promoting
Officessince 2004.
Continuing fromlast year, ourcommitment to“3R” activities
has beenrecognized,
and we wereselected as a
JVC General Affairs Manager (left) and Kenwood
three-star site.
Yokohama Office Personnel Manager (right)

Recipients of the FY2008 Yamagata Prefecture
Environmental Protection Promotion Governor’s Award

Social Report
Environmental Report

As a result of our involvement in local environmental
activities being highly regarded, the Kenwood Yamagata
plant was awarded the FY2008 Yamagata Prefecture
Environmental Protection Promotion Governor’s Award.
What enabled us to win on this occasion was receiving
the understanding and cooperation of many people,
including the employees and their families who hadparticipated in environmental activities, as well as local
businesses who had
allowed us to engage inenvironmental activities,
NPO Partnership
Office Sakada, and the
Shonai Environmental
Management ResearchGroup. We shall
Yamagata Prefecture Environmental Protection
continue with these
Promotion Governor’s Awardenvironmental
activities
in future in
gratitude for thenatural blessingsof Shonai,
as a Shonai
company.

Compilation of Environmental Activities
Exhibited at “Eco Products 2008”
From December 11 to 13, 2008, we exhibited as theholding company for the first time at “Eco Products 2008.”
This was the first foray into the market since the merger.
Not only was
our main exhibit
products designedwith environmental
awareness of JVC
and Kenwood’s
energy saving
and the 3Rs,
JVC Kenwood booth
but we also

Kenwood Yamagata plant president (right) receiving theaward.

34

Environmental Report

Environmental Education and Internal Audits

Internal Auditor Training
To act as internal auditors, it is necessary not only tounderstand the laws and regulations of the environmental
management system and the internal auditing procedures,
but also to improve auditing performance through audit
training. To achieve this, training is implemented to
improve the knowledge and skills of internal auditors.
Further, to train key audit personnel, we are also increasing
the number of qualified environmental management
systemexaminers using
environmental
examinertraining throughexternal teachingorganizations.

General Training

Hierarchy-based training
Training teaches on-site managers how to understand theenvironmental management systems at their sites. The
training also builds an awareness of the responsibilities
carried by leaders to promote environmental activities
according to the environmental training for new
management.

Economic Report

Specialist Training
Specialized training is given to employees who work infields (legal regulations, measurements, equipment, andenvironmental design) that have a large impact on theenvironment and in which they are required to have theseskills. All employees that need these skills are provided
specialized training. This training also is useful for overall
environmental compliance.

Highlights

General Training
Based on laws for increasing the desire for environmental
protection and for conducting environmental education,
all our employees (including new employees, temps, andpart-timers) receive environmental education. They learn
about the importance and current condition of the global
environment, the role and responsibility of each individual,
workplace activities and other information for achieving
our environmental policies. Further, we have introduced
an e-learning system on our intranet, and have createda learning
environment
so that all
employees canlearn without
place or time
restrictions.

Corporate Governance

As a group of companies that develop, produce, and sell environmentally conscience products, the JVC Kenwood Group
understands how important it is that all our employees are aware of the effect their work has on the environment and to
take positive steps everyday to reduce that effect. Every year, we train our employees according to detailed plans. This
training includes general training courses, ranked training courses, courses for specialists, courses for internal auditors ofenvironment management systems, and training to prepare for emergencies.

Top Management Message

Environmental Training

Social Report

Internal Auditor Training

Internal Audits
Internal audits are implemented to check the effectivenessand results of our environmental management systems.
Each site implements an internal audit annually to findand correct problems in the system and in operations toimprove their management of the environment. To be fairand objective, the audits are done by our internal auditors
who come from outside the department being audited.
The success of environmental management is evaluatedaccording to compliance with environmental laws andregulations and the environmental standards of the JVC
Kenwood Group. Our goal is to never stop improving.

Internal Audit

35

Promoting a Voluntary Environmental Action Plan
Top Management Message

Environmental Targets and Results
JVC outline
JVC established the “Green Plan 2010” (GP2010) voluntary action plan in 2001, and has been involved in reducing its
environmental burden ever since.
This plan promotes the creation of green products (GP) that conform to global environmental regulations to conserve energy,
use resources effectively, and do not use harmful substances according to policies to prevent global warming and eliminate
the environmental impact of harmful substances. In addition, in clean factories (CF) it helps to reduce shipping and theEconomic Reportflushing of VOCs and PRTR chemicals into the environment by strengthening chemical management, reducing waste andlowering greenhouse gasses.
Although our business configuration changed in FY2008, we were able to meet our targets in all areas.

■ FY2008 Results for Green Plan 2010, and Targets Until 2010
Activity

FY2008 targets/results

Evaluation Reference
pageof results

FY2010 targets

FY2009 targets

Product-related (green products)

Highlights

1. GP development products

GP development rate: Over 82%/89%

GP development rate: Over 86%

GP development rate: Over 90%(1) Energy-saving products

Warming prevention factor(compared to FY2000)

x1.72

Warming prevention factor(compared to FY2000)

x1.86

Warming prevention factor(compared to FY2000)

x2.0(2) Resource reduction andrecyclability (3Rs)

Resource factor(compared to FY2000)

x1.62

Resource factor(compared to FY2000)

x1.66

Resource factor(compared to FY2000)

x1.7

Corporate Governance

2. Replacement of harmful unused PVCs

PVC-free wiring in the camcorder
Phthalate ester-free HP cable

Elimination from internal wiring and AC Elimination of PVC and brominatedflame retardant
adapter cables

3. LCA introduction

Main LCA model/100% implementation

EU LCA model 100% implementation

All LCA models 100% implementation

4. Green procurement

Examination of introduction of REACH-compatible
system/Easy system introduction completed

Introduction of REACH-compatible IT
systemComplete database of materials andsubstances

Plant-related (clean factories)

CF certification rate over 80%/87%(Global)CF certification rate over 85%(Global)CF certification rate over over 90%(Global)1. Energy savings
Reduction in CO 2 emissions

Emissions reduced over 1% annually;
over 8% compared to FY2000/65%

Over 9% (compared to FY2000)

Over 10% (compared to FY2000)[Worksites achieving GP2010 maintain energy-saving activities to reduce energy consumption
by 3.5% compared to previous year.]

2. Chemicals(1) Main chemicals to reduce (global)(2) Controlled chemicals (global)

Social Report

Over 8% (based on FY2005)

Over 10% (based on FY2005)

Over 4% (based on FY2005)

Over 5% (based on FY2005)

Reduction of emissions and transfer(compared to 2005) over 6%/89.7%
Reduction of emissions and transfer(compared to 2005) over 3%/82.1%[Worksites achieving GP2010 maintain energy-saving activities to reduce emissions andtransfer amounts by 2% compared to previous year.]

18% reduction (based on FY2000)

3. Waste reduction

20% reduction (based on FY2000)

Environmental Report(1) Total waste reduction (global)

Waste creation reduction rate(compared to FY2000) 16%
reduction/72.6%(2) Zero emissions (Japan)

Recycling rate over 99%/99.7%

Over 99%
Over 99%[Worksites achieving GP2010 maintain energy-saving activities to reduce waste
by 2% compared to previous year.]

Aquifer, PCB, and asbestos
surveys/No leaks discovered

Reexamination of closed factories.Implement
suitable measures if pollution is verified.

Verify 100% safety in storage plants andoffices.Complete survey of all offices.

Reinforcement of global promotion system
Software companies certified

JVC group unified within Japan by
FY2009 examination

JVC KENWOOD
Holdings comprehensive certification

Reinforcement of environmental
accounting system

Ongoing data management

Improve accuracy and reflect inenvironmental management

4. Environmental risks

Environmental activities
1. ISO 14001

2. Environmental accounting

36

Environmental Report

Kenwood Outline
Kenwood is involved in reducing its environmental burden by creating three-year plans for “green product promotion
areas.
1. Low-energy, compact products
In the home electronics business, we are involved in reducing standby energy consumption to reach the highest industrial
standards (i.e., be the top runner) as an energy conservation activity since 1998. Further, we have been involved in energy
conservation though more compact on-board products in the car electronics business since FY2002.
In the communications business, we have been reducing the standby current for radio devices since FY2003, which has

Top Management Message

activities” and “environmental preservation promotion activities.” We achieved our goals for FY2008 for almost all businessWe achieved our goals for FY2008 for almost all business areas.
2. FY2008 targets were met for LCA method trials, creation of design standards, supply of environmentally-friendly products(reducing harmful substances), and green procurement.

Economic Report

greatly increased the operating time that is possible from a single charge.

■ FY2008 Results for “Green Product Promotion Activities” and “Environmental Preservation Promotion Activities,” and Targets Until 2010
Activity

FY2008 targets/results

Evaluation Reference
pageof results

FY2009 targets

FY2010 targets

Lightweight target (commercial): 4%
compared to base models/Achieved• Home electronics business
Reduced standby power consumption
and power consumption during use
for newly-designed models• Standby power consumption target
0.1w max./Not achieved• Reduction in power consumption
during use 5%/Achieved• Communications businessNew onboard designs standby
Current reduction

Standby current target: 25%compared to base models/Achieved(1) Reduce power consumption(1) Reduce power consumption(2) Energy saving through lighter
weights
2% reduction compared toprevious model(2) Energy saving through lighter
weights
2% reduction compared toprevious model

Energy saving of power consumption
during use
Same or less than base models
Reduction of standby current for
specified new design models

Plan created at end of 2009

Reduction of standby current for
specified new design models

2. LCA method trial
Evaluations from each sales office

Achieved

Reorganization for FY2010
ISO 14001 comprehensive
certification−−−

3. Formulation of design standards

Targets achieved as planned

Reorganization for FY2010 ISO
14001 comprehensive certification−−−

Achieved

Reorganization for FY2010 ISO
14001 comprehensive certification−−−

Targets achieved as planned

Periodic environmental audits

Periodic environmental audits

1. Reduction in energy-saving
CO2 emissions

CO2 reduction 6,051 tons/5,523 tons
(compared to 1997: 33.0%/38.4%)

CO2 reduction target 5,454 tons orless (39.1% reduction compared to1997)

CO2 reduction target 5,340 tons orless (39.7% reduction compared to1997)

2. Waste
Reduction of final disposal amountFinal disposal amount
0.93 tons/0.78 tons

Final disposal amount maintained atless than 0.78 tons

Final disposal amount maintained atless than 0.78 tons

3. Waste
Recycle rate

Zero emissions maintained(99.7%/99.8%)

Zero emission base 99.5% or more

Zero emission base 99.5% or more

Implement environmental design
evaluation method to all product types
4. Environmentally-friendly products supplied(Reduction of toxic substances)
Database management
Maintenance of a self-analysis system
5. Green procurement
Monitoring of suppliers

Corporate Governance• Car electronics business
Lower weight of newly-designed models

Social Report

1. Low-energy, lightweight products

Highlights

Green product promotion activities

Evaluation standards: Target achieved;
Target partially unachieved;
target not achieved
FY2008 indicates the period from April 1, 2008 to March 31, 2009, FY2009 is from April 1, 2009 to March 31, 2010.

37

Environmental Report

Environmental protection activities

Making Products Environmentally Friendly
Top Management Message

Green Products
Joint Concept in the Design Process
The JVC Kenwood Group maintains the following

Further, JVC LCD

environmental concepts for all products.

TVs such as LT-

1. Active promotion of energy-saving activities to minimize

42P789 occupy thegreenhouse gas emissions

number one spot

2. Involvement in resource conservation and recycling

after designs were

Economic Report

activities as the world’s resources are limited

quickly changed to comply with

3. Active promotion of reduction and prohibition of

new U.S. Energy Star power

JVC LCD TV LT-42P789

environmental pollutants in cooperation with trading

reduction standards.

partners to prevent chemical pollution

Kenwood achieved 54% energy savings by incorporating

4. Strict observance of environmental laws and othera digital amp into the R-K1000 premium amp in 2007, andrequirements

its sound quality is also highly regarded, but in FY2008, the
new Prodino digital amp KAF-A55
also succeeded in reducing

The memory card-type camcorders

operating power consumption by

GZ-MS100/120 launched by

77%. (See Page 39.)

JVC in July 2008 consume

We will continue our efforts toapproximately 70% to 80% of thecreate products that support theenergy of existing hard disk types.

Kenwood Prodino digital amp
KAF-A55

future of our global environment.

JVC Camcorder GZ-MS120

The environmental green logo is used to identify excellent

the environmental standards. Further, the logo is also usedenvironmentally-friendly products and to encouragefor environmental activities such as ISO 14001.

environmental action. This logo shows that the product isparticularly environmentally friendly among all the JVC andEnvironmental
green logo

Kenwood products. It shows products that conform to all

JVC

Kenwood▲

Corporate Governance

Environmental Green Logo Concept▲

Highlights

FY2008 Activities Highlights

Material Balance (CO2 Emissions)Social Report

The JVC Kenwood Group implements life cycle

discharged at each stage from production to discarding ofassessments (LCA) on typical products.

a typical model.

The table below shows the amount of CO2 emissions■ CO2 Emissions for Typical Models According to LCA Evaluation

Environmental Report

Material
Manufacturer*1)
Logistics*1)
Use *2)
Waste
Total emissions*3)

Unit: kg-CO 2 /device

Camcorder

LCD TVs

Professional camcorder

AV amp

Car electronics foroutside Japan

Amateur radio

GZ-MD300
JVC

LT-42P300
JVC

GY-HM700
JVC

KRF-9300
Kenwood

DDX714
Kenwood

TM-V71
Kenwood

3.07
0.79
0.19
1.25
0.005
5.31

227
57.5
5.0
637
0.8
927

32.29
76.68
1.77
23.55
0.01
134.35

1.97
19.05
4.29
346.330.19
371.83

26.38
2.33
1.42
58.16
0.04
88.33

8.18
2.18
0.51
58.16
0.02
69.05

*1) manufactured by JVC Kenwood Group production companies outside Japan, and presumably shipped to a typical sales company outside Japan.
*2) The annual use time is determined for each product, and the power consumption for the presumed service life is calculated as the amount of CO2 emissions.
*3) The amount of CO2 emissions is calculated using the JVC Kenwood Group LCA standards.

38

Environmental Report

Digital LMR NX-200/300
Standby current has
been reduced 33% compared
Energy to the 2002 model, making thisSavi ngan industry top-class model.
According to CO2 calculations, further
improvements accounting for 111 more
tons have been made on top of the 119
tons from last year for a total reductionof 230 tons of CO2.

EM-A842D Digital Power Amp for Emergency and
Office BroadcastingThis amp uses digitization to cut power
consumption and uses at least 60% less power
Energy than conventional amps but has the same powerful
Savi ng
output. It has
been attracting attention
since its launch at “EcoEM-A842D
Product in 2008.”

NX-200/300

On-Board Devices
The XR-1S digital amp is 25.1% morecompact
than the previous model, and the XRWeight
Reductio n 4S digital amp is 17% more compact thanthe previous model (see photo on right). Both amps areintended for the non-Japanese market. The 2DIN DVDReceiver DDX8024BT for the non-Japanese market (seephoto on left) is 4.5% more compact than the previous
model. According to CO2 calculations, the three models
reduce CO2 by atotal of 59 tons
annually. From
FY2008, we havebeen involved
DDX8024BT
XR-1S, XR-4S
in reducing operating power consumption, including theincreases of the future eco-car, and so are contributing topreventing global warming.

LCD TV LT-42SL89
This LCD TV, which won the EU green
award in 2008, in now also available in the USA.
Energy As a result of excellent energy conservation andSavi ngenergy-saving designconcepts due to its waferthin compactness, it can
reduce CO2 emissions by 20%
compared to existing models.
The expected amount of CO2
reduction over the life cycle isLT-42SL89
3,400 tons.
Mini Components for Outside Japan: NX-G9/G7
This system reduces standby power
consumption by 20% (from 15 W to 12 W)
Energy compared to the FY2007 DX-J11 model by using
Savi nga hybrid power supply and a digital amp, andsetting to ECO mode achieves
reductions of 93% (from 15 W to
1 W). Further, power consumption
during operation has also been
reduced by 26% (from 95 W to 70
W) while increasing output by 20%(from 100 W x 2 to 120 W x 2).

Digital Amp KAF-A55 (Prodino
Reduces operating power consumption by
77% compared to the 2007 analog amp model.
Energy This reduces the amount of CO by 66.6 tons
2
Savi ngannually. Further, the analog amp model UDE77WSD (see photo on right) also achieves reductions ofapprox. 5.5% compared to the FY2007 UD-A77 modelfor operating power consumption, so CO2 is reduced byapprox. 10.5 tons annually.

NX-G9/G7

KAF-A55

39

UD-E77WSD

Highlights

EnergySavi ng

Corporate Governance

GZ-MS120

The memory card-type camcorder GZ-MS120
reduces power consumption to 78% that of otherhard disk types.
This reduces the amount of CO2 by 15 tons
annually.

Social Report

CO2

CO2

Environmental Report

We have reduced the cardboard
used by 12% by making the individualLess CO2
Size
packing containers
Reductio n Transport
30% smaller. This
also contributes to CO2 reduction
during transport.

Economic Report

On-Board Optical DVD Pickup: OPTIMA-2060
Harmful chemicals were reduced
by elimnating lead and chromium (VI).
Also, by using a builtSize
Reductio nin hologram
device and reducing the numberof parts, we made it lighter and reduced
the amount of resources used.

Camcorder GZ-MS120

Top Management Message

Environmentally-Friendly Product Development

Promotion of Global Chemicals Management
Conformity to REACH Regulations*1

important throughout the entire supply chain. Here, theJVC Kenwood Group in involved in activities to promote

Top Management Message

came into effect in Europe in 2007. To conform to these

the notification of chemical information within the supply
chain by participating in JAMP*3.

regulations, the JVC Kenwood Group published its “JVC

Further, in the belief that promoting conformance toKenwood Group Green Procurement Guidelines Version

REACH regulations together with trading partners in a spirit

1” in October 2008, which is used at meetings to instructof mutual dependence and prosperity is indispensable,

trading partners how to conform to REACH standards.

we periodically check the trading partners’ chemical

The REACH regulations were enacted to disclose themanagement systems and conduct audits as necessary.

New regulations concerning chemical management

chemicals that impact the environment that are present in
Economic Report

Global Chemical Management

products and materials and to require manufacturers toreport to the European authorities and inform consumers
and customers about designated chemicals that are

To fully comply with the regulations for chemicals in various

present in their products.

different countries, such as the REACH regulations, it isnecessary to know exactly which chemicals are in theparts and materials that are used in our products. To do

Creating Communication Systems in the
Supply Chain and Sharing Information

this, we have created a new environmental database
to check all the chemicals that are used from design toHighlights

With the REACH regulations, the number of chemicals

delivery.

subject to control has greatly increased compared to the
RoHS directive*2, and full management and information

In this way, we can continue to supply products that thecustomer can use safely.

transmission on chemicals will become even more

Corporate GovernanceParts purchasing
Obtaining data on chemicals
in parts and materials

Business partners

Checking supplier’s chemical
management systems
Green Procurement Guideline

Social Report

Chemical survey(JAMP AIS prioritized)
Use of designated chemicals
prohibitedGreen procurement evaluation
Trading partner survey
Onsite audit

Information disclosure from
customer requests
Supplying products that conformto chemical regulations

JVC Kenwood Group

Customers

Conformance to EU REACH regulations and
RoHS directive
Management using environmental database
Accumulation of data on trace chemicals in materials
Environmental conformance checks at the design stage
Handling information disclosure according to customer requests
SVHC*4 (substances of very high concern) calculation
and reporting
Control of prohibited substances in designated chemicals
Materials inspection before receiving
Product inspection before shipping*1

Environmental Report

REACH regulations Registration Evaluation Authorization and Restriction of Chemicals
Law for controlling chemicals in the EU determined by EC regulation No. 1907/2007.

*2
RoHS directive: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment
	Restrictions in harmful substances implemented by the European Union (EU) to limit the use of six substances: lead, mercury, cadmium, chromium (VI), PBB(polybrominated biphenyl), and PBDE (polybrominated diphenyl ethers) used in consumer electrical and electronic products effective July 2006
*3
JAMP : Joint Article Management Promotion-consortium	A conference that aims to spread specific mechanisms for the smooth disclosure and transmission within the supply chain of the suitable management of chemical
information, contained in articles.
*4
SVHC; (Substances of Very High Concern)	Substances of very high concern include CMR (carcinogenic, mutagenic, or toxic to reproduction), PBT (persistent, bioaccumulative, and toxic), vPvB (very persistentand very bioaccumulative), and endocrine disrupting chemicals (environmental hormones).

40

Environmental Report

Product Recycling (in Japan)

The JVC Kenwood Group is actively promoting recycling based on the home appliance recycling laws, which target JVC
Kenwood products in Japan, the container and packaging recycling laws, and the laws that promote the effective use ofresources.
■ Japanese Television Recycling Results: No. of Recycled JVC TVs(1,000 products) 400

293

1000
0

311

293

311

293
2007

311
2008

2007

2008

■ Japanese Container and Packaging
2008
2007 Recycling Results(tons) 400(tons)
JVC(tons)
Kenwood
JVC
JVC
Kenwood
Kenwood

400
300
400
300
200

346

300
200
100

346

200
1000

346

1000
0

280
280

80.3

280

200780.3

80.2
200880.2

200780.3

200880.2

2007

2008

Container and Packaging Recycling
The container and packaging recycling law was enacted
in April 2000, and the JVC Kenwood Group calculates
the prospective plastic, container and packaging waste
used in Japan as a designated business, and signs a“reuse contract” every year with the Japan Containers
and Packaging Recycling Association. To reduce excess
emissions, we are using 3R designs to reduce the size andweight of packaging materials.

JVC
Kenwood
Kenwood

60
40
20

63.7

40
200
200
0

7.5

67.9

Highlights(tons)
80■ Japanese Rechargeable Battery Recycling Results(tons)
80
60
JVC(tons)
80
60
40
Kenwood
63.7
67.9
JVC

7.0

7.5
63.7
2007
7.5
2007

7.0
67.9
2008
7.0
2008

2007

2008

3R Design
Lowering the overall weight of products, reducing volume,and eliminating the number of parts does more thanjust save resources, it also reduces the CO2 needed forshipping. The JVC Kenwood Group is using 3R designs
to focus on reducing the number of parts, materials used,
and weight.
We have reduced the number of parts in JVC LCD TVs
by 45% and the materials used by 18% by weight. This
reduces CO2 produced during shipping by 32%.

Compact Rechargeable Battery Recycling
The JVC Kenwood Group has signed a contract with alimited liability intermediary, JBRC, which was establishedby the Battery Association of Japan based on the “Lawfor Promotion of Effective Utilization of Resources,” which
was enacted in 2001. We are now promoting the recovery
and recycling of used compact rechargeable batteries forwhich reuse is obligated by law as a designated resource
product. The legally-designated recycling rates are NiCad
60%, NiMH 55%, lithium ion 30%, and compact sealed
lead 50%, and these were all cleared.

■ Results of Using 3R Designs for JVC LCD TVs

41

Main unit
weight

LCD panel

Plastic

Metal parts

Numberof parts

Existing LCD TVs

28.6 kg

11.5 kg

5.8 kg

5.4 kg3528 parts

JVC LCD TVs

23.5 kg

12.0 kg

3.5 kg

2.1 kg1952 parts

Reduction Rate

18%

+4%

40%

61%

45%

Corporate Governance

300
200
100
200
1000

Social Report

JVC
JVC

Economic Report(1,000 products) 400
300(1,000 products) 400
300
200
JVC

Environmental ReportJapanese Home Appliance Recycling Laws
We participate in Group A as part of the recycling system
scheme. Based on our relationship with consumers,
retailers (local government), and manufacturers, weare able to protect the Earth's limited resources byreusing them. The
FY2008 results for thenumbers of televisions
reprocessed into
products increased 1.7
times that of FY2001.
The reprocessing rate under the law was 55%, but due tothe increase in plastic recycling, we were able to recover
84% of the total collected weight in materials.

Top Management Message

Japanese Recycling Activities

Product Recycling (Outside Japan)
EU and USA Recycling Activities
Top Management Message

In addition to recycling efforts in Japan, the JVC Kenwood Group is recycling according to the Waste Electrical and Electronic
Equipment directive (WEEE) in Europe, and laws for disposal of waste home appliances which are spreading throughout theUSA. TVs and AV equipment, which are JVC Kenwood Group products subject to these laws, are designed based on the
3Rs to reduce the number of parts comprising the product and make recycling easier.
We are applying 3R designs for a total optimization that takes into account environmental risks and recycling costs as well as
the recycling and recovery rates established by the WEEE directive and other laws.

Economic Report

European WEEE Recycling Conformance
JVC National Recycling Scheme• France: Echo-Logic• UK: REPIC• Germany: e-backHighlights

Kenwood National Recycling Scheme

Denmark

IrelandUnitedKingdom• France: Echo-Logic

Holland
Belgium• UK: Transform

PolandGermany

Czech Republic• Italy: Consorzio Re.media

Austria• Germany: Ecology Net Europe

FranceCorporate GovernancePortugal• Italy: Consorzio Re.media

FinlandSwedenHungary

Outline of the WEEE (Waste Electrical and Electronic

Italy

Spain

Equipment) Directive• Enforced since August 13, 2005
• Applies to 10 large and small home electrical appliances, etc.
• Recycle rate: 65% min.

Countries that already recycle• Recovery rate: 75% min.

US Recycling Conformance by State

Social Report

Involvement in Waste Home Appliance Laws by StateCANADAJVC currently supports recycling in several states as a

WA
MT
ND

OR
ID

WY

SD

VT

MI

WI

NH

NY

NE

NV

UT

CA

IA

CO

Environmental Report

NM

KY

MO

TX

NJ

VAVA

Kenwood conforms to the recycling laws in California and

MD

NC
SC

TN
AR

Note: MRM is the Electronics Manufactures Recycling Management Company, and is acompany founded by Panasonic, Sharp, and Toshiba.

MA
RI

DE

WV

OK

CT

PA

OH

IN

IL
KS

AZ

member of MRM* which is expanding nationwide.

ME

MN

other states.

MS
AL

LA

GA

Involvement in Mercury RegulationFL
HI
MEXICOWe report to IMERC (Interstate Mercury Education

Puerto Rico

& Reduction Clearinghouse), and label products andStates that already recycle or that are scheduled to recycle

packaging, etc.

Note: Recycling laws had been established in approx. 8 states and 1 city by the end of2008 (Source: Japan Machinery Center for Trade and Investment survey)

42

Environmental Report

Making Our Offices Green

Families of Employees who Participatedin the “Tanabata Light Down”

CoolBiz and WarmBiz“Cool biz” in the summer and “warm biz” in the winterhave been rolled out at Japanese production centers andoffices as seasonal activities to prevent global warming.
A temperature manager is assigned to adjust the air
conditioners, keeping them at 28ºC in the summer and
20ºC in the winter. All
employees are urged
to take part throughour intranet andposters, suggesting “noneckties” and to use“natural air conditioning” “Cool biz” poster on display in a factoryin the summer, and to wear “suitably warm clothing” in thewinter.

Green Procurement of Office Supplies
In our offices, we are proactively “buying green” bypurchasing environmentally-friendly stationery, officesupplies, office equipment, and other supplies. Staff incharge of procurement use the office supply purchasingsystem on the Internet and order and purchase products
designated as ecologically or environmentally friendly.
These include products with the Eco or Green Marks, or
those designated as complying with the Law on Promoting
Green Purchasing. Also, we send reports on the status ofgreen purchasing to the staff in charge of procurement toincrease our rate of usage.

Energy-Saving Patrols

Economic Report
Highlights

Our building management system makes the amountof power used by
employees visible,
which raises theirawareness ofPower monitoring
consumption andsystemthe reduction of CO2
emissions. Central air
conditioning systems
control individual AC
Eco Cute hot water
Intensive air condition
supplycontrol system
units throughout thebuilding and monitor detailed power usage on each floor
in real time using a 24-hour power monitoring systemthat supplies the optimum amount of power to each floor.
(Techno Wing Building)■ Green Purchasing Status

We participate in a system of energy-saving patrols thatwere created with local businesses. By visiting the facilitiesof nearby companies we can learn about and apply their
good points. We are focusing on finding waste at facilities
that use large amounts of electricity so we can reduce CO2
emissions.

Other
Office and dailyliving products

Environmental Report

On the evening of July 7
we invited our employees
and their families to turn off
their lights and join in the“Tanabata Lights Down”
campaign. We turned off
all our office billboard lights
for two hours from 8:00
to 10:00 pm to help stop
global warming.

Corporate GovernanceIntroducing Building Management Systems

Participation in the Light Down Campaign

Social Report

The JVC Kenwood Group is actively involved in preventing global warming to fulfill our social responsibilities
as a “green company.” Each and every one of our employees is busy reducing greenhouse gasses in small
ways, such as turning off lights at lunch, turning off computer monitors when away fromdesks, and using our building management systems. We are also continuing to work on“Team Minus 6%” as part of these activities.

Top Management Message

Global Warming Countermeasures

Office and work products
Stationary andcorrection products
Stationary andoffice products
Office devices
Notepad andpaper products
Files
OA and PC supplies
0%

43

20%

40%

60%

80%

100%

CO2 Reduction Activities
Energy-Saving Activities

Involvement in Green Logistics

Top Management Message

The JVC Kenwood Group is continuing to reducegreenhouse gasses based on a voluntary environmental
protection plan. We reduced CO2 emissions in Japanese
production sites and manufacturing companies in FY2008
to 48.6% compared to FY2000. This is due in great part tothe changes in our business style, but it is also due to theefforts of each plant and office.
The JVC Kenwood Group is not saving energy just to
reduce CO2, we are implementing measures to continue
reducing other greenhouse gasses as well.

Economic Report

Minimizing Product Packaging
Protective packaging materials have fixed standards
to protect the product against vibration and the shockof falling that may occur during shipping. We are using
common sense to minimize packaging while maintaining
these standards. Minimizing packaging not only saves
resources
and createscompactness.
It also improves
palletizing,and improvesshipping
efficiency,
which iseffective in
reducing CO2
emissions.

■ CO2 Emission Trends in Production Sites and Companies in Japan

Highlights(1,000 tons)
90 82.6
80
70
60
50
40
30
20
10
0
2000

JVC
74.0

76.0

79.2

75.6

77.8

CO2

70.2
60.6

CO2

38.6

CO2

2001

2002

2003

2004

2005

2006

2007

2008

Studying Efficient Logistics
Products shipped frommanufacturers outside Japanare controlled to reduce thenumber of containers bystreamlining container loading
which helps to reduce CO2 .
The JVC Kenwood Group is
Efficiently-loaded container
improving logistics efficiency byincreasing loading efficiency and shipping efficiency.

Kenwood(1,000 tons)
10
8.1
8

7.6

6.9

7.1

7.3

7.2

6.4

6

6.0

5.5

4

Corporate Governance

2
0

2000

CO2

2001

2002

2003

2004

2005

2006

2007

2008

Protection and Effective Use of Resources
Social Report

Reducing Waste through “Zero Emissions”

Waste Reduction Activities

Many of the production sites, companies, and offices
within the JVC Kenwood Group have achieved zerowaste emissions.* We will continue in the future with zero
emissions through the thorough separation and recyclingof waste materials.

Environmental Report

Production sites and companies in Japan reduced waste
by an incredible 54% compared to the previous year. Thisis 27.2% of the waste produced in 2000. The reduction ofwaste over the past five years has been very successful.
This is mainly because operations that produce large
amounts of waste acids and alkalis were reduced in the
reorganization of operations. While the drop in productionin Japan has contributed to this, all the plants have
reduced the amount of waste that is produced. As a resultof waste reduction activities throughout the year, we havemaintained a recycling rate of 99.8% and continue withzero emissions. We have succeeded overseas in the same
way over the last five years by reducing the number of✱	Zero emissions: An idea proposed by the United Nations University in 1994, to“minimize the impact of humans on the natural environment, and to use the Earth’s
limited resources completely and efficiently”; the JVC Kenwood Group is involved
in defining the final amount of waste materials as 1.0% maximum of the total
generated.

44

Environmental Reportplants and lower production volumes.

JVC

20
15
10

6.5

3.5

4.0

7.2

7.1

7.1

2004

2005

2006

16.6

5
0

2000

Final disposal amount2008

Amount reduced

Kenwood

0.8
0.72

0.4
0.2
0

0.70

0.66
0.22

0.02

2000

0.56
0.00
2006

0.00
2005

2004

0.46

Final disposal amount

0.37

0.00
2007

Dirt (inorganic, organic, mixed)

557

13.1

0

0.0

Paper and wood waste

1,932

45.4

156

42.8

Waste plastic

1,169

27.5

76

20.8

Waste liquids (waste oils, acids, and alkalis)

177

4.2

1

0.1

Metal filings (ferrous and non-ferrous)

329

7.7

64

17.6

Other (animal and vegetable residue, etc.)

91

2.1

68

18.5

4,256

100.0

365

100.0

Total

0.00
2008

Kenwood

AmountComposition
AmountComposition
created(tons)
ratio(%)
created(tons)
ratio(%)

3.1

2007

1

0.6

JVC

Waste classification

1.2

5.2

Amount recycled(1,000 tons)

FY2008

3.6

Economic Report(1,000 tons)

Paper and plastic accounts for a large proportion of thewaste produced by the JVC Kenwood Group because its
main business is manufacturing electric products. These
two types of waste are being recycled.

Top Management Message

Breakdown and Composition of Waste (in Japan)■ Annual Trends in Waste Generated by Production Sites andCompanies in Japan

Amount recycled

The amount of Pollutant Release and Transfer Register(PRTR) chemicals handled by the JVC Kenwood Grouphas continued to fall since 2003. The amount handled in
FY2008 was greatly reduced by 0.9% compared to theprevious year, and the discharged and transferred amountsby 12.9%. The Japanese production sites and companies
that handle more than a ton of these materials have been
reduced to one site, and the only material handled isnickel. This is because the JVC Kenwood Group gave up
control of production of printed boards and blank media
when business operations were revamped.

To reduce emissions of VOC into the atmosphere, the JVC
Kenwood Group is participating with electric and electronic
industrial organizations in voluntary activities to suppress
the emission of VOCs.
The table shows the results since FY2005, using FY2000
as a baseline, and the reduction targets for FY2010. The
amount of VOCs handled and emitted into the atmosphereis extremely small bacause we limited their use to trace
amounts for testing and experiments. Similar to PRTR
chemicals, VOCs are used for blank media operations,which no longer appears in the totals. However, the total
is still lower than last year, even if they are added to thetotals.

■ JVC Kenwood Group: Total Amounts, and Emission andTransmission Amounts, of PRTR Chemicals(tons)
900
800■ JVC Kenwood Group VOC Handling and Atmospheric Emissions(tons)
900

800
703

700

608

363

400

100

73

80

77

85

91

2001

2002

2003

2004

2005

57

2000

Amount handled

2006

7
2007

Ethanol

Butyl acetate

MIBK
Ethyl acetate

Reduction targets calculatedusing plant meetings andvoluntary action plans (30%reduction/compared to 2000)

2008:
Usage reduced bymajor businessrestructuring200

0Cyclohexanone

400

313

300
122

Isopropyl alcohol

VOC elimination facilities
started at Mito plant
December 2006

500

300
200

Acetone600

500

Toluene1-metoxy-2-propanol

700

625

581

600

Methyl ethyl ketone

800

753

3

1

100

2008

0

Emission and transfer amounts

Handled Emitted Handled Emitted Handled Emitted Handled Emitted Handled Emitted Handled Emitted
FY2000 results

45

Corporate Governance

Plans for Suppressing VOC Emissions into the Atmosphere

FY2005 results Fiscal 2006 results Fiscal 2007 results FY2008 results FY2010 targets

Environmental ReportManaging PRTR Chemicals

Social Report

Reducing Materials That Impact the Environment

Highlights

Note: Kenwood’s Japanese production companies do not have any production
processes that require reduction.

Reducing Environmental Risks
airborne asbestos. Further, we are involved in the removalof building materials containing non-spatter type asbestos
as conforms to the laws applying to disassembly andremoval. The photo shows
sampling being done forairborne materials in a JVC
Hachioji plant shed. Testing
showed no asbestos was
detected.
Asbestos examination

Cleaning Ground Pollutants
Top Management Message
Economic Report

In FY2008, JVC surveyed the pollution of the aquifers at 11
sites under factories and offices owned by the company.
As a result of the investigation, perchloroethylene andfluorine pollution was confirmed at one site.
As well as reporting this fact to the Yokohama
Environment Agency, we implemented a cleanup withadministrative involvement under
instructions regarding cleanupcountermeasures. The cleanup
results were reported, as well as
being verified by Yokohama city.
The photo shows the cleanup of
Ground pollutant cleanup
the perchloroethylene and fluorine.

PCB Management and Countermeasures

Highlights

To avoid environmental risk, electrical devices containing
PCBs are collected and managed at four sites: JVC
Head Office, Yamato plants, Kenwood Hachioji office andKenwood Devices (Yorii). Specialist storage rooms havebeen configured to prevent PCB leaks to the outside.
Electrical devices containing PCBs continue to be
managed carefully until
safely processed by the
Tokyo facility of the Japan
Environmental Safety
Corporation (JESCO).

Asbestos Reexamination and Countermeasures
A company-wide survey and implementation ofcountermeasures had already been completed regarding
airborne asbestos, but due to the revision of the law
strengthening the key concentrations in 2006, eight plants
and company buildings were reexamined. No asbestos
was found during the second examination. We will continue
with further examinations for and countermeasures to

PCB storage shed

Environmental Accounting
Corporate Governance

The JVC Kenwood Group is making its management practices more transparent by publishing information
and by introducing environmental accounting in line with the Environment Ministry’s guidelines. Correctly
identifying environmental maintenance costs and evaluating their effects is important when considering how
to manage the environment and to make decisions about the future more precise.

Analyzing Environmental Maintenance Costs

Businessarea costs

Social Report

Worldwide investment for environmental protection by the JVC Kenwood Group in FY 2008 totaled 53 million yen in newplants and equipment and 1,605 million yen in expenditures. This is a major reduction in capital investment compared to theprevious year and it resulted in a 50% drop in effectiveness. A reduction in profits from recovering valuable materials fromwaste also shrunk the effectiveness. Total environmental protection costs have continued to shrink since 2007. This is due tothe elimination and consolidation of production sites both in Japan and overseas. However, it is difficult to evaluate the cost/benefit ratio compared to last year
Environmental maintenance costs:equipment investment and costs for environmental maintenance activities (Unit: Million yen) JVC Kenwood Groupbecause our business operations
Equipment
Activity
Explanation
Expenses
Total
investment
have changed dramatically.
Pollution prevention Costs and investment required to prevent air and water pollution
1.36
128.73130.09Global environmental Global warming prevention and ozone layer protection costs
We will continue in the future
29.09
59.53
88.62
costs
Resource cycle
Waste material reduction, recycling, and reuse costs, etc.
20.50
94.11
114.61to reduce our burden on the
Subtotal
50.95
282.36333.31environment through appropriate
Eco product and green purchasing costs, waste home appliance countermeasures,
Upstream and downstream costs
2.30
446.31448.61and packaging and container recycling, etc.
management of costs to protect
Management activities costs
378.70378.700.00
Environmental management costs, ISO certification, maintenance, training, and staff costs
Eco product development, energy conservation, and harmful chemicals replacement
the environment.
R&D costs
0.00
22.40
22.40
Social activities costs
Environmental damage costs

technology development costs
Amenities, contribution and support costs, and information publication, environmental advertising,and environmental exhibition costs

Soil pollution correction costs, reparations, fines, and other costs
Total

46

-

0.10

0.10

0.00

474.68474.6853.25

1,604.55

1,657.80

Environmental Report

Environmental accounting scope

Reduction of electricity used and waste processing costs through environmental maintenance activities
Sum (Unit: Million yen)

Reduction of waste processing costs

0.53

7.80

Reduction of water and sewer service costs

7.43

8.60

Reduction of packing materials and logistics costs

1.00

1.00

Profits from sales of recycled plant waste

133.33

Profits from sales of recycled products

0.02

Kenwood Hachioji Business Center, Kenwood Yokohama Business Center,
JVC head office (Yokohama) Plant, JVC Yokosuka Plant, JVC Maebashi Plant,
JVC Hachioji Plant, JVC Yamato Plant, Victor Creative Media Co., Ltd. Rinkan Plant,
Total scope

Victor Interior Furniture Co., Ltd., Kenwood Yamagata Corporation (Yamagata Plant),
Kenwood Nagano Corporation (Nagano Plant), JVC Kurihama Technology Center

IncomeTotal

243.08Global Affiliated Manufacturing Companies (9 companies)
JVC America Plant, JVC Mexico Plant, JVC Singapore Plant, JVC Malaysia Plant,

366.99JVC Thailand Plant, JVC Indonesia Plant, JVC Optical Components (Thailand),JVC Beijing Plant, JVC Vietnam

Reference guidelines: Ministry of the Environment “Environmental
Accounting Guidelines, ver. 2005”

History of Environmental Activities
JVC
1991
1992
1993
1994
1995
1996
1997

1998

1999

14 offices in Japan obtained ISO 14001 certification“Environmental report” published

2000

Recycling promotion office establishedJVC Green Award system started
Product assessment policies started

2001

2002
2003

2004

Awarded the 12th Yokohama environmental protection activities award
Eco-Products 2004 exhibition
Eco-Products international exhibition (Malaysia)

2005

Basic environmental policies revised
Eco-Products 2005 exhibition
Eco-Products international exhibition (Thailand)

2006

Eco-Products 2006 exhibition
Eco-Products international exhibition (Singapore)

2007

Left Panasonic Group
Head Office Plant recognized with Yokohama Environmental Action Award“Excellent (Three-Star) Garbage Separation Office”

1st “Environmental Task Committee” convened
Environmentally-friendly “pulp mold” used in packing materials(First portable CD player in the industry)
Involvement in NiCad battery recycling started
Ozone layer-destroying materials (designated fluorine) completely removed from plants

Environmental management system promotional office established at the head officemanagement headquarters
Two major Japanese offices, Hachioji and Yokohama, obtained ISO 14001 certification
Nagano Plant obtained ISO 14001 certification
Malaysia Plant (KETM) obtained ISO 14001 certification
Singapore Plant (KETS) obtained ISO 14001 certification
Yamagata Plant obtained ISO 14001 certification
Registered with the Japan Containers and Packaging Recycling Association as a business entity“Environmental Report 2000” published
Kenwood environmental logo created
Use of lead-free solder started with portable MD player and LMRs

Recovery and recycling of used TVs started
ISO 14001 certification obtained by Japanese business and service centers
ISO 14001 certification of all production centers worldwide completed
Registration of products conforming to green purchasing methods
Project to promote the introduction of lead-free solder established
Participation in the compact rechargeable battery recovery and reuse program
Eco-Products 2002 exhibition
Green procurement standards created and explanatory meeting held
Name changed to Environmental Business Report, and English version published
Eco-Products 2003 exhibition

2008

Kenwood

Environmental management section established
1st “Environment Board Meeting” held
Product assessment activities started
Basic environmental policy charter created
JVC environmental logo created
Phase I environmental voluntary plan created, and in-house environmental auditing started
Designated fluorine, etc., completely removed from production processes
In-house environmental audits (Japan)
Basic environmental policy created (charter revised)
Phase II environmental voluntary plan createdHachioji region ISO 14001 certification obtained (first in Japan)
Dichloromethane in-house use completely abolished
JIM (Mexico) ISO 14001 certification obtained (first outside Japan)
Environmental headquarters established
Product recycling project launched
Green procurement guidelines created

Shanghai Plant (SKE) obtains ISO 14001 certification
Registered with the Japan Portable Rechargeable Battery Recycling Center as a business entity
Green procurement guidelines created
Nagano Plant “zero emissions” achieved
Environmental promotion department established in the comprehensive business department“Environmental countermeasures conference” changed to “Kenwood environmental conference”,
and green product promotion conferences and environmental protection promotion conferences held
Study begins for compliance with European environmental regulations (WEEE & RoHS)“Environmental report 2004” transferred from paper medium to WWW.
France Plant (KEB) obtained ISO 14001 certification
WEEE products recovery and recycling contract signed with Panasonic EU subsidiary ENE,
and registered with the central WEEE registration body in Germany
Lead-free solder is incorporated at all plants by end of October 2005
Preparation completed for compliance with European RoHS directive
Registered with “Team Minus 6%”Original poster created to develop “cool biz” activities company-wide
All four Kenwood offices and plants in Japan attain “Zero Waste Emissions.”
This is reported in and outside the company.
Name changed from the Environmental Promotion Dept. to the Environmental & Social Contribution Department
Revised Environmental Philosophy and Policies. Issued Environmental Action Plan, 1st edition“Social and Environmental Report” published
Successfully renewed ISO 14001 certification for the third time
Yokohama office recognized with Yokohama Environmental Action Award “Excellent (Three-Star)
Garbage Separation Office”

October: Business merger as JVC KENWOOD Holdings
December: Eco-Products 2008 exhibition
JVC Head Office Plant and Kenwood Yokohama Office recognized for the second consecutive year as “Excellent (Three-Star) Garbage Separation Office” for the Yokohama Enviromental Action Award.

47

Top Management Message

Reduction

JVC Kenwood Group Japanese production centers and companies (11 plants + 1 research center)

Economic Report

216.24Highlights

100.77

Energy conservation at plants

April 1, 2008 to March 31, 2009

Corporate Governance

Past cumulative total

Social Report

FY2008Environmental Report

Classification

Period3-12 Moriya-cho, Kanagawa-ku, Yokohama, Kanagawa Prefecture, 221-0022 Japan

Contact Information

Environmental Sustainability OfficeTel: 045-444-5383 Fax: 045-453-1406
You can also access this report from our homepage.
URL: http://www.jk-holdings.com