Creating excitement and peace ofmind for the people of the world
Contents● Management under JK3.0
Management Message

2

Striving to Achieve Full-scale Growth under“JK3.0” 4
Providing Cutting-edge Solutions That Wow People

6

Brand Portfolio / Anniversary Commemorations

8● Business Overview
Business Overview of the JVCKENWOOD Group10

Automotive sector

12

Public Service sector

14

Media Service sector

16● Initiatives Supporting Value Creation
Diversity

18

Human Resource Management

20

Social and Environmental Initiatives (CSR)

24

Corporate Governance28

Global Brand Strategy

32● DataOverview of the JVCKENWOOD Group34

Financial Highlights

35

Corporate History

36

Network (Global)

38

Network (Japan)

39

Management Team40

Corporate Proﬁle / Stock Information

41

[Disclaimer]●

The forward-looking statements and graphs contained in our documents are based on currently
available information and therefore actual results may signiﬁcantly diﬀer from projected ﬁgures,
depending on various factors. Please do not make any material judgments based on the
projections contained herein alone. Our core businesses deal with the rapidly changing
electronics sector, and factors including technology, demand, price, competitive environment,changes in the economic environment, exchange rate ﬂuctuations and many other factors may
adversely impact management results or the ﬁnancial condition of the Company.

●

All company names, brand names and product names contained in our documents areregistered trademarks or trade names of their respective holders.

1Management Message

Of fering Cutting-edge Solutions
Fusing together the technologies and experiences we have accumulated over the years,
and using our deep insight into our customers’problems, JVCKENWOOD will continue topartner with our customers to oﬀer cutting-edge solutions.
◆ Overview of FY2016

merger in 2011, and it was the 70th anniversary of

Despite a sense of uncertainty in some sectors, theKenwood’s foundation in December. In September thisglobal economy showed signs of a moderate recovery

year, we will mark another milestone, the 90th

in FY2016. In the domestic economy, there was ananniversary of JVC.

improvement in business sentiment, and the tone ofmoderate expansion continued.

JK3.0 and the anniversary commemorations, and to

Under these circumstances, increased sales in theachieve further growth and development through thedealer-installed options business in the Automotive

creation of innovation, we have decided to redeﬁnesector and revenue increases in the entertainmentand revive the Victor brand, adding it to the JVC andbusiness in the Media Service sector contributed to an

KENWOOD brands that we are deploying globally. The

increase in net sales for the JVCKENWOOD Group. In

Victor brand will be limited to creative products that doterms of group-wide income/loss, although operating

not ﬁt into either the JVC or the KENWOOD brand. We

and ordinary income were up as a result of thesewill revive the“pride and spirit of exploration”that hasrevenue increases, due to the posting of extraordinary

always been part of the JVC DNA, and deploy it anew

losses, the ultimate result attributable to owners of the

as a brand that will“create an era.”parent company was a net loss.

The ﬁrst product to be marketed under the newWith the desire to provide a stable return to ourVictor brand will be WiZMUSIC, an acoustic

shareholders ﬁrmly in mind, and considering ourcharacteristics customer service that uses ourearning capacity and ﬁnancial situation fromproprietary EXOFIELD out-of-head localization soundcomprehensive perspectives, we have decided on aﬁeld processing technology. This unprecedented andyear-end dividend of 5 yen per share. This is the third

innovative service will also serve as a commemorative

consecutive year that we have been able to issue a

product for JVC’s 90th anniversary.

dividend to our shareholders.

◆ JK3.0 and Anniversary Commemorations

In this way, we will continue to come up with
cutting-edge solutions that wow everyone who
encounters them, and realize our corporate vision of

The JVCKENWOOD Group views the era in which the“creating excitement and peace of mind for the people

separate companies of Victor Company of Japan (JVC)of the world.”

and Kenwood Corporation enjoyed the patronage of2

To mark these milestone events of the launch ofcustomers with their respective brands as Stage 1, and,◆ Towards the Realization of Vision 2020

taking the J from JVC and the K from Kenwood, has

Under the new management structure approved at thedeﬁned that era as“JK1.0”The years from 2008, when

9th Ordinary General Meeting of Shareholders, theJVC and Kenwood merged amidst the turbulent market

entire JVCKENWOOD Group is managed in a matrix ofenvironment of advances in digitalization, were deﬁned

ﬁve regions backed by three business segments. The

as Stage 2, or“JK2.0”The end of June 2016, when aclariﬁcation of responsibilities and a signiﬁcant

new management structure was established, marked

delegation of authority will result in the speedy

the beginning of“JK3.0”The full-scale activities that wemanagement of the Group’s businesses.

have launched under JK3.0 are designed to achieve

To realize“Vision 2020,”with its goal of thegrowth through the creation of value for our customers.

Company’s evolution into a Customer Value Creator,

In October last year, we marked ﬁve years since theunder this new management structure, we will continue

MANAGEMENT MESSAGE

to strive for the expansion of our existing businesses. At
the same time, we will take the superior technologies
and know-how that the Group has accumulated overmany years in the areas of images, sound, andcommunication systems and apply them to businesssegments that have great potential and social
signiﬁcance, such as in-car systems and healthcare. We
will pre-empt our customers’problems and continue topartner with our customers to provide cutting-edge
solutions. In this way, we will make daring strides
towards a new strategy for growth and aim to take adramatic leap into the future.
In JK3.0, all of our executives and employees alike,while fulﬁlling their own respective roles, are in theprocess of reforming the JVCKENWOOD Group into a
company where they are excited to work and canexperience ﬁrst-hand the“joy of working.”◆ Earning Social Trust
We believe that a company seeking to achievesustainable growth must ﬁrst meet the expectations of
its stakeholders and then, through unﬂagging eﬀorts,
earn the trust of society.
The JVCKENWOOD Group endeavors to be a company
that can earn the trust of its many stakeholder groups ‒including consumers and corporate clients. We willachieve this goal by working as a single, uniﬁed teamand leveraging our strengths to improve the quality of
all corporate activities, products and services; raise ourcompetitiveness; and contribute to society.
Simultaneous with these eﬀorts, we will
demonstrate our commitment to future generations byenhancing our community-based social contribution
and environmental conservation activities.
Thank you for your continued understanding andsupport.
June 2017

Takao Tsuji
President and CEO

3

Striving to Achieve Full-scale Growth under“JK3.0”
The JVCKENWOOD Group views the era in which the separate companies of Victor Company ofJapan (JVC) and Kenwood Corporation enjoyed the patronage of customers with their respective
brands as Stage 1. And, taking the J from JVC and the K from Kenwood, we have deﬁned that era
as“JK1.0.”The years from 2008, when JVC and Kenwood merged, were deﬁned as Stage 2, or“JK2.0.”The end of June 2016, when a new management structure was established, marked the
beginning of“JK3.0.”The full-scale activities that we have launched under JK3.0 are designed toachieve growth through the creation of value for our customers.
EXOFIELD out-of-head localization
sound ﬁeld processing technology

Under“JK3.0,”JVCKENWOOD
will drastically transform itself
in all aspects including its
corporate culture under the
new management structure toMulti live monitoring earphones
developed using a crowd funding service

evolve into a company capableof creating customer value

2.0
The era of management
integration andstructural reforms

Introduced MDV-313, which was Kenwood andJVC ’s ﬁrst joint development
JVC KENWOOD Holdings, Inc.
was established

Victor and Kenwood entered into an agreement
on a capital and business alliance

2009

2008

2007

1.0
The era of Victor Company ofJapan (JVC) and Kenwood
Corporation operating as
separate companies

4

1946

Kasuga Radio Co., Ltd. was established

1939

Produced Japan’s ﬁrst television set (Victor)

1927

Victor Talking Machine Company of Japan,
Limited was established(1986: Renamed Kenwood Corporation)

FULL-SCALE GROWTH UNDER JK3.0

Digital cockpit systems

Gazeﬁnder, a gaze point
sensing system

Diagnostic equipment using opticaldisk technology (DVD/Blu-ray)

2016

Established JVCKENWOOD Public & Industrial Systems
Corporation, aiming to expand Professional Systems Business2015

Launched GY- LS300CH, a professional 4K memory card camera recorder2014

Launched KNA-DR300, a dashcam with full HD(1920 x 1080) high-quality video recording ability

2012

Completed the development of ﬁrst-generation head-up displays

2011

JVCKENWOOD Corporation completed an absorption-typemerger of three companies: Victor Company of Japan, Limited;
Kenwood Corporation; and J&K Car Electronics Corporation

1995

Introduced GR-DV1, the world’s ﬁrst pocket-sized digital video camera (Victor)

1992

Introduced the industry’s ﬁrst 1DIN-size GPS car navigation
system (Kenwood)

1976

Introduced HR-3300, the world’s ﬁrst home-use VHS (Victor)

1957

Was the ﬁrst Japanese manufacturer
to export FM tuners (Kenwood)5

Providing Cutting-edge Solutions That Wow People
JVCKENWOOD is striving to provide innovative solutions that wow people by making the most of
the intellectual property and technologies it owns, as well as the experience and know-how it has
cultivated over the years.
EXOFIELD out-of-head localization sound ﬁeld processing technology

EXOFIELD is JVCKENWOOD’s unique out-of-headlocalization sound ﬁeld processing technology. It usessound ﬁeld processing based on the measurement ofvarious acoustic characteristics including personalfeatures, enabling a realistic sound ﬁeld eﬀect even when

you listen with headphones, as if you were listening tomusic on speakers. EXOFIELD supports the reproductionof multi-channel audio sources, enabling
three-dimensional sound ﬁeld reproduction in headphones
in a home theater or virtual reality environment, etc.

Multi live monitoring earphones developed using a crowd funding service
In an ef fort to launch multi live monitoring earphones
equipped with an ambient sound capture function,
our unprecedented proposal, JVCKENWOOD utilized
Makuake, a crowd funding service operated by Cyber
Agent Crowd Funding, Inc., and raised about 22.50
6million yen, signiﬁcantly exceeding its fundraisingtarget. JVCKENWOOD will continue to set out on
product development and propose solutions from thecustomer perspective by collecting information onuser needs with a multifaceted approach.

CUTTING-EDGE SOLUTIONS

Digital cockpit systems

JVCKENWOOD enjoys a major share of the global car
electronics market and has driven innovation in the
opto-electronics market for a long time. By combining
these strengths, JVCKENWOOD focuses on developing
advanced digital cockpit systems, such as head-up displays,
car-mounted full HD cameras, camera monitoring systems,

and digital instrument cluster meter displays.
JVCKENWOOD has positioned digital cockpit systems as
its next-generation growth area and is making proposals toautomakers and parts manufacturers while conducting
joint technical development in this area.

Diagnostic equipment using optical disk technology (DVD/Blu-ray)
JVCKENWOOD is advancing the development ofequipment for detecting and measuring exosomes* 1
useful for cancer screening. For this development,
JVCKENWOOD applies its original optical disk-related
technology as well as the research results* 2 of Keio
University School of Medicine, Tokyo Medical University,and School of Life Science and Technology of Tokyo
Institute of Technology. By combining this equipment withthe high-sensitivity measurement technology of Sysmex
Corporation (hereinafter“Sysmex”), JVCKENWOOD and

Sysmex are jointly developing unconventional, unique,high-performance exosome diagnostic equipment.
*1: An exosome is a vesicular granule (50-100 nm in size) secreted from many
types of cells and exists in biological ﬂuids such as blood, saliva and urine.
An exosome contains a variety of substances such as protein, mRNA, andmicroRNA. In recent years, there have been increasing expectations that it
will become a biomarker for various diseases, including cancer.
*2: Research results of Tokyo Medical University (Specially Appointed
Professor Hiroshi Handa), Keio University School of Medicine (Full-time
Lecturer Yasuaki Kabe), and School of Life Science and Technology ofTokyo Institute of Technology (Professor Satoshi Sakamoto).

Gazeﬁnder, a gaze point sensing system
System Overview
Carrying
handleMonitorComputingunit

Front view
Eye tracker

Back view

Speaker

Near infrared
light emitting
diode (LED)
Stereo camera

Gazeﬁnder is a new solution that JVCKENWOOD has
created using its unique gaze detection technology. Thisequipment visualizes the eye-gaze patterns of the subject ofan experiment who views an image displayed on a monitor.
By providing Gazeﬁnder, JVCKENWOOD is aiming to of fer
the gaze point tracking platform to universities and research

institutions in ﬁelds including psychology, neuroscience,
medical science, and education that conduct research ongaze points. In addition, we will push forward with its
development through joint research with research
institutions and universities, as diagnostic aid equipment thathelps to detect developmental disorders at an early stage.
7

Brand Portfolio
The JVCKENWOOD Group has multiple product brands and Subsidiary company brands under the umbrella of the
JVCKENWOOD corporate brand. We strive to maximize the corporate values of the entire Group by clearly showing
the trust and values that have been built up in each of those brands and leveraging their respective strengths.

Corporate Brand

Product Brands

Subsidiary Brands

Redeﬁning and Reviving the Victor Brand*Used only in Japan.

In this milestone year of 2017, the 90th anniversary of the founding of The Victor Talking Machine Company, theVictor brand has been redeﬁned and revived as a brand with a separate concept from the JVC and KENWOOD
brands that the Group deploys worldwide, joining those two brands.
Since The Victor Talking Machine Company was founded in 1927, the Victor brand has continued to transform theworld of sound and images. It began with the phonograph, and continued with Japan’s ﬁrst locally-made television,the 45/45 stereo sound system, recording studios, research and development of three-dimensional sound ﬁelds, VHS,which became the global standard in video cassette players, K2 technology, a technology for enhanced digital soundquality, and a variety of speakers, including the Wood Cone speakers.
To show our pride in this history of innovation that has been built up consistently over the years and to explore
diverse new approaches, the Victor brand will be conﬁned to original, creative products that would not ﬁt in witheither of the JVC or the KENWOOD brands. It will be deployed anew as a brand that will“create an era,”with“pride
and a spirit of exploration.”

8

BRAND PORTFOLIO

90 Years of JVC, 70 Years of KENWOOD
The former Victor Company of Japan (JVC), which began with the manufacture of phonographs, will mark its 90th
anniversary on September 13, 2017. Meanwhile, the former Kenwood Corporation, whose beginnings lie in the repair,assembly and sale of radios, marked its 70th anniversary on December 21, 2016. To commemorate these milestones
and to take the brands, which have been nurtured and loved for so many years, into the future, new products
designated as“anniversary models”will be released for each brand.

* The roots of the JVC and Victor brands lie in The Victor Talking
Machine Company, which was founded in 1927.

* The roots of the KENWOOD brand lie in Kasuga Radio Co. Ltd.,
which was founded in 1946.

1st“Anniversary Model”

Victor WiZMUSIC ～ sound space in my pocket ～Victor WiZMUSIC is a brand new concept in product and services that allows the user to enjoy a sound ﬁeld thatsounds like a speaker, even while listening with headphones. It’s based on EXOFIELD, JVCKENWOOD's proprietary
out-of-head localization sound ﬁeld processing technology. It packages together a personalized measurement anddata conversion service, using EXOFIELD to create the optimal out-of-head localized sound ﬁeld for each user, with
newly developed high-spec dedicated headphones that maximize the eﬀectiveness of the sound ﬁeld, and other typesof peripheral equipment, such as a premium portable amp.

WiZMUSIC90 is a premium package, limited to just

“WiZMUSIC”is a coined word that combines the

300 customers, who will be measured for theirword“MUSIC”with a play on the words“Wizard”

personalized sound ﬁeld at the Victor studio, EX

and“With.”

Room.

9

Business Overview of the JVCKENWOOD GroupWe create and deliver new value for customers
The Media Service sector consists of the Media Business, which iscomprised of three areas of the Solution Business covering
professional-use video cameras and projectors, etc., the Products Businesscovering consumer video cameras and headphones, etc., and the
Imaging Device Business covering image display devices, etc.; and theEntertainment Business, which is comprised of the Content Business,
which has as its core Victor Entertainment, Corp., and the OEM Business.

Media Service
sectorMedia BusinessEntertainment BusinessBusiness
as of June

Public Service
sectorCommunications Systems Business
Professional Systems Business
Healthcare Business
The Public Service sector consists of the Communications Systems
Business covering Professional Wireless Systems and amateur radio sets,
the Professional Systems Business, operated by JVCKENWOOD Public &Industrial Systems Corporation, covering security camera systems andprofessional audio systems, and the Healthcare Business, which primarily
provides medical display monitor solutions and Gazefinder, a gaze point
sensing system.

10

BUSINESS OVERVIEWThe Automotive sector is positioned as a growth driver in Vision 2020,
the JVCKENWOOD Group’s medium-term management plan.
Typically developing car navigation systems, car audio systems anddashcams, the sector is divided into the Consumer Business, which
provides products to consumers through volume-sales retailers anddistributors, and the OEM Business, which provides products throughautomobile manufacturers and dealers.

Composition
23, 2017

Automotive
sectorConsumer Business
OEM Business

11

Automotive sector
Main Products
Car navigation, car audio and
DVD entertainment systems, dashcams,
optical pickups, in-car CD/DVD mechanisms,
and other products
Representative Director of the Board,
Executive Vice President,
Chief Operating Officer (COO) Automotive sector,
COO EMEA (Europe, Middle East and Africa)

Shoichiro Eguchi

Automotive sector Will Respond to the Changing Business Environment in the Automobile Industry
The automobile industry is being required to take theini t ia t i v e in addr e s sing f u t ur e en v ir onmen t al is sue s(CO 2 /NOX emission regulations) and to adapt to thecoming age of a self-driving society. To manage
environmental issues, advanced electronics technologies arebeing developed to accommodate the shift to electricvehicles (EVs), and conventional meters are being replacedwith digital meter display systems. In a society whereself-driving cars will be widespread, vehicles will need to beequipped with various sensing devices, such as cameras
and sensors. In addition, connecting such devices to theInternet will enable in-vehicle infotainment systems to
sho w v ehicle inf ormation and tr af fic inf ormation b y
deploying cloud services. Furthermore, the application of
artificial intelligence (AI) will allow vehicles to provide
drivers with more accurate and appropriate information.
With these advancements in automobiles, theimpor tance of communication bet w een v ehicles anddrivers (HMI: Human Machine Interface) is increasing andhence the automobile indus tr y is f acing the need todevelop new technologies. By responding to the changing
business environment, the automobile industry is expected

to expand its safety and security features and realize anenvironment-friendly society.

1. Environmental issues

2.

Shift to self-driving cars

Shift to EVs

Sensing(stand-alone)

Connected(collected
information based)

Electronics/
digital displays

Cameras/sensor
technology/
dashcams/HMI

Smartphones, AI and
big data analysis

Car-mounted equipment manufacturers, including
JVCKENWOOD, are facing the need to keep pace withsuch changes in the automobile industry. JVCKENWOOD
operates the Consumer Business and the OEM Business,and it will proactively respond to changes required in eachbusiness.

Consumer Business

12

The Consumer Business provides products mainly forexisting vehicles. Amid the changing businessenvironment in the automobile industry, JVCKENWOOD
has launched dashcams with driver assistance features
to help ensure safe driving, and these can be retrofitted
to existing vehicles. With them, it has gained theindustry-leading market share in Japan. In addition,
JVCKENWOOD has the Saisoku-Navi series of car
n a v i g a t i o n s y s t e m s f e a t u r i n g h i g h - c o n t r a s t image

quality and high-speed response. The series has seen its
market share grow in Japan. JVCKENWOOD also has car
navigation systems and display audio systems that enjoy
leading market shares in the U.S. and Europe, and these
are compatible with Apple CarPlay and Android AutoTM,
which enable car-mounted equipment to be connectedto the Internet. These products are highly acclaimed in
the market.

Saisoku-Navi series

Dashcams

OEM Business
The OEM Business deploys car navigation systems linked withdashcams, which we provide in the Consumer Business, in the
dealer-installed option business. We are winning new orders forlarge projects from leading Japanese automobile manufacturers
thanks to our strong reputation in the consumer market andexcellent product performance.
JVCKENWOOD is also working on the development of
next-generation digital cockpit systems (e-meters, camera
monitoring systems and head-up displays, etc.) that are
showing high growth potential following the progress of thedigitization of car-mounted equipment. Our advanced digital
cockpit system developed in collaboration with McLaren
Automotive of the U.K. has been adopted for McLaren’s luxury
sports cars.
With an eye on the upcoming shift from conventional
vehicles to EVs and self-driving vehicles, JVCKENWOOD will
respond to changes in the automobile industry and achievebusiness growth by developing products that leverage thevideo, audio and wireless communication technologies of the
JVCKENWOOD Group, as well as HMI technologies.
Looking to expand our factory-installed option business,

JVCKENWOOD will collaborate with Shinwa International
Holdings L td. ( tier 2 manufacturer of in-car CD/DVD
mechanisms), which became a subsidiary in June 2013, and
A SK Indus trie s S.p.A. ( tier 1 manuf ac tur er o f in- c ar
amplifiers/speakers/antennas), which became a subsidiary in
April 2015. Together, we will win new customers by mutually
utilizing our customer networks and production bases. We will
focus our efforts on strengthening business, in particular, in
China, which is the world’ s largest automobile market withgreat potential for growth, and other emerging markets
including Asian countries.

McLaren Automotive of the UK: the next-generation digital cockpit system

ASK Industries S.p.A: in-car amps, antennas and other products

13

Public Service sector
Main Products
Professional radio systems, amateur radio equipment,
security camera systems, professional audio systems,
medical image display systems, exosome analysis systems,
GazeFinder and other products
Representative Director of the Board,
Executive Vice President,
Chief Operating Officer (COO) Public Service sector

Kazuhiro Aigami

Communications Systems Business14

In the Communications Systems Business, JVCKENWOOD
provides highly reliable professional radio devices and systems to
the public safety sector (police and fire departments), the public
service sector (electricity, water and gas) and the private sector(railways, buses, hotels and plants) around the world.
JVCKENWOOD boasts the world’s second-largest market share inthese areas.
Going forward, JVCKENWOOD will particularly step up its
efforts in the public safety market in North America, which is
expected to expand continuously, by strengthening cooperation
with Zetron, Inc. and EF Johnson Technologies, Inc., its
communication system subsidiaries in the U.S., and aiming toprovide total solutions for professional radio systems conforming
to Project 25 (P25), a digital radio format for the public safetymarket in North America. Following the recognition of the
NXDN™ digital protocol as the international standard by theInternational Telecommunications Union-Radiocommunications

Sector (ITU-R*), we will deploy the NEXEDGE ® series ofprofessional digital radio systems conforming to the NXDN™
digital protocol around the world. In this way, we will aim toprovide digital radio solutions to solve issues confronting a wide
range of users, including those in the railway sector in Asia,
where demand is expected to grow down the road.
In addition, we have entered into a capital alliance with
Sonim Technologies Inc. in the U.S., the leading provider ofultra-rugged LTE handset technology, with an eye on the
progress of the shift to broadband in the professional digitalradio infrastructure. In this way, we are strengthening ourefforts in professional broadband-based digital radio solutions
capable of video and large-capacity data communication.

Professional digital radio systems

We entered into a capital alliance with Sonim Technologies Inc. in the U.S.

Professional Systems BusinessIn the Professional Systems Business, operated by
JVCKENWOOD Public & Industrial systems corporation, which
was established in April 2016, we are striving to become asolution provider that helps its customers to solve their issues
while also contributing to the development of a safe, secureand comfortable society. We are also engaged in production
and sales of highly reliable security camera systems andprofessional audio systems developed based on our advanced
image display and acoustic technologies. We release theseproducts on the education, public sector, distribution, social
infrastructure, amusement facility and other markets. In
addition, we are working to expand sales by providing
one-stop total solutions, such as by proposing and designingsystems to solve customers’ issues, carrying out high-quality
construction, and providing maintenance and operation
services that ensure safe use over a long period.
Furthermore, we will actively promote alliances withexternal organizations and offer a wide range of solutions
based on outside-the-box ideas. These include an intelligent

security system that enables IVA (Intelligent Video Analytics) ofmultiple security camera images in real time, as well as the
KooNe Space Sound Design Solution that produces a
comfortable space, planned and developed by JVCKENWOOD
Victor Entertainment Corp.
JVCKENWOOD will strive to strengthen its solution proposal
capabilities by offering one-stop solutions, ranging from sales,
proposal of systems, and engineering to support services
through integrated organization. In addition, we will aim tobecome a solution provider
that meets the needs ofcustomers by proposing
solutions based oncollaboration not only
within the Group but alsowith external organizations.

Security camera systems

Healthcare Business
The Healthcare Business handles mammography displays andother radiographic medical image displays that realize the highest
levels of display performance and stability that medical imaging
demands. This is achieved with JVCKENWOOD’s unique display
technologies. In addition, we are providing pathological image
displays using our unique color management technology.
Going f or w ard, J V CKEN W OOD w ill promo t e thecommercialization of 8K camera system solutions for rigid
endoscopes that have low invasiveness and improve the safety ofsurgery by providing high-definition images of over 33 million
pixels, and systems for efficient management of videos andimages used in surgical operations, and aim to turn these intobusinesses promptly.
Moreover, JVCKENWOOD will aim for business growth bydeveloping advanced and innovative testing/diagnostic systems.
These include Gazefinder, a piece of social development

evaluation equipment that uses our proprietary gaze point
sensing technology and that can identify developmental
disorders at an early stage, and an early detection system forcancer to which the optical disk technologies being developed
jointly with Sysmex Corporation are applied.

15

Media Service sector
Main Products
Consumer/professional video cameras,
headphones, projectors, AV accessories, home audio
content/contract production business andother products/businesses
Director of the Board,
Managing Executive Officer,
COO Media Service sector,
Chief Technology Officer (CTO),
General Manager of R & D Department

Yasuyuki Tanida

Media BusinessIn the Solution Business, we carry out development and sales

that feature wooden diaphragms.

of products, including 4K/2K video cameras, high-definition

In March 2017, JVCKENWOOD announced themonitors and industrial image systems that meet the needs ofdevelopment of our unique EXOFIELD out-of-head localization

professional sectors, as well as projectors based on our unique

sound field processing technology, which enables listeners to

D-ILA LCOS (Liquid Crystal On Silicon) devices, including

get a real sound field effect achieved in speaker listening evenhigh-resolution projectors for professional use such as flightwith headphones. Going forward, we will work to deliver asimulators and projectors supporting the high dynamic range

new headphone listening experience enabled by reproducing(HDR) that are used for automobile design.

an unprecedentedly natural sound field with WiZMUSIC, a

Customer needs are rapidly changing as an effect of the

new product with EXOFIELD technology released in May.

diversification of broadcasting and business forms due to the

In the Imaging Device Business, JVCKENWOOD is striving

Internet of Things (IoT) and the advancement of high-quality

to expand its businesses in global markets by expanding

video technologies such as 8K/4K imaging technologies. To

external sales of its proprietary D-ILA LCOS devices, achieving

respond to such needs flexibly, in addition to providing

full-scale production of Pico devices, and launchingequipment, at JVCKENWOOD we are promoting anext-generation image devices such as head-mounted displays

transformation to a solution business that enables us tofor virtual reality (VR) systems.

promptly respond to customer needs through systemizationand customization.
In the Products Business, we conduct development andsales of video cameras with a shift in focus to a proposal-based
product lineup. Our range includes long playback models andall-weather models designed for use in outdoor activities andsports, high-resolution audio models that leverage the Group’s
unique advanced acoustic technologies, special-purpose
products, such as headphones for sports and kids, and homeaudio systems, such as the Wood Cone series of audio systems

Flight simulator

4K memory card
camera recorder

WiZMUSIC

16

Sponsorshipagreement with thetriathlete Mario Mola

Advisory agreementwith the female soccer
player Kozue Ando

4K projector

Entertainment Business
The Content Business, which has as its core JVCKENWOOD
Victor Entertainment, Corp., is endeavoring to enhance itscore Music Business in two ways. The first is by responding tochanges in the entertainment industry environment, such as
the diversification of user preferences and the popularizationof the Internet and mobile phone distribution as a result of
improved infrastructure. The second is by making enterprising
investments in talented new artists to discover and foster
such artists and promote a partnership strategy to create hits.
In December 2012, JVCKENWOOD entered the Space Sound
Production Business on a full-scale basis by launching its
KooNe Space Sound Design Solution, which uses ahigh-resolution audio sound system. We have introduced thesystem in many locations, such as corporate offices,
commercial and entertainment facilities, libraries andresidential facilities.
Victor Rock Festival, an annual event that started in 2014,
has been enjoying popularity as a live concert featuring many
major Victor Entertainment artists.
In the OEM Business that specializes mainly in the
production of packaged software, such as CDs, DVDs andBlu-ray products, we fully support customers and meet theirrequests, from the production of content to the creation of
package media. In 2016, we relocated the Rinkan BusinessCenter (Yamato City, Kanagawa Prefecture) of JVCKENWOOD

KooNe Space Sound Design Solution

Creative Media Corporation, a subsidiary engaged in thecontract manufacturing of packages, to the Yokosuka Plant toenhance the corporate value of the entire Group.
JVCKENWOOD will further advance its transition to thetotal entertainment business, including the managementbusiness, live concert/event business and merchandisingbusiness, by connecting the appeal of artists and music tovarious businesses in a wide range of fields. In addition, we
will enhance the comprehensive capabilities of the Group by
expanding new B-to-B business domains and making themost of our music, video technologies and know-how.

Victor Rock Festival

Keisuke Kuwata

Mariko Takahashi

Gen Hoshino

Leo Ieiri

Sakurako Ohara

Walküre17

Diversity

Diversity & Inclusion
Respectful of diversity and accepting of differing views and diverse opinions (inclusion), JVCKENWOOD is actively promoting
diversity and inclusion. We believe that, when people with a diverse range of ideas and values respect and inspire each other, thecompany can generate innovative ideas and meet a variety of customer needs around the globe. To this end, JVCKENWOOD holds
in-house awareness programs and recruits and appoints diverse personnel.

Action Plan
JVCKENWOOD has set up the following action plan topromote diversity. In Phase 1, which lasted until April
2017, awareness programs, employee training and othersimilar measures were carried out with the aim of
ensuring diversity as a well-established corporate culture(see the later mentioned FY2016 Activities for details). In
Phase 2, which will last until April 2019, we will engage
in the promotion of cultivation measures and global
expansion.
In addition, as part of its initiatives to promote active
participation by women, JVCKENWOOD is aiming toboost the ratio of female managers to 5.0% by 2020. As
a result of the measures outlined above, the ratio of
female managers rose from 2.1% in 2015 to 2.9% as ofJune 2017.

Aiming to build an organization that allows employees to play active roles in various environments
JVCKENWOOD’s Diversity Promotion Office plays a central role in implementing various
activities aimed at building an organization that allows all employees to play active roles invarious environments. One such initiative was the reinforcement of the harassment
consultation scheme in April 2017. By establishing a scheme that makes it easier for
employees to seek advice, incidents of harassment can be dealt with at an early stage. Thisnot only mitigates serious risks for the company, but also helps to prevent harassment in
the workplace, which is one of the major impediments to the promotion of diversity. In
addition, through a variety of activities such as training for managers of female employees
and child and nursing care seminars, which are based on the findings of employee opinion
surveys, we are striving to create an environment and systems that will enable all
employees to deepen their understanding of diversity and put it into practice.
We will continue to expand our systems and support activities to enable employees tojuggle their jobs with their home lives. Our promotion of diversity will also include therecruitment of more foreign employees and the empowerment of people with disabilities.
Hitomi Kajitani, Head of the Diversity Promotion Office, General Administration Department

18

DIVERSITY

FY2016 Activities
Diversity training for all employees
To ensure diversity as an established part of our corporate culture, all employees in the JVCKENWOOD Group took diversity training
using an E-Learning platform, to foster an awareness of diversity among employees.

Seminars for support to juggle work with child and nursing care
Employees also took seminars which help them to juggle their jobs with child and nursing care. The theme of the seminar for
juggling work with child care was “communication skills for encouragement that can be practiced at work.” Participants were
given training in communication that is effective when caring for children, and in improving communication at work, including in
the development of subordinates. The seminars for juggling work with nursing care (such as caring for aged relatives) taught
participants about how to find the right mindset for nursing care and gave them part of the basic knowledge required for when
they eventually face a nursing care situation.

Women’s active participation training
With the aim of increasing the ratio of female managers, training was given at each grade for female employees who will be future
candidates for management positions. Training was also provided for managers of female employees, to help them deepen theirunderstanding of the concepts and objectives of diversity (changing oneself and changing the way everyone works throughdiversity).

Seminar on juggling job and child care

Manager training

Diverse working styles
To enable employees with a variety of home backgrounds, such as caring for children or for aged relatives, continue to work lively,
the JVCKENWOOD Group provides support for a diverse range of working styles. The last several years has also seen an increase in
the number of male employees taking childcare leave.

An employee who took childcare leave
My section designs and develops digital circuits for video cameras and projectors. I am
currently working on the design of circuits for use in next-generation video cameras.
My motivations for taking childcare leave included the fact that my wife wanted us
to care for our child together, and I also wanted to participate in raising our child myself.
When I mentioned it to my manager, he was a little surprised, but he readily agreed.
I gained a real sense that the company was very advanced in its understanding ofchildcare leave.
When I took 45 days of childcare leave, we were frantically busy looking after our
newborn baby every day from morning to night, and I sometimes felt that it would beeasier to go in to work. However, when my wife told me that, if I hadn’t taken that leave,
she might have become ill doing it all herself, I was very glad that I took the time off. As
I watched my daughter grow so healthily every day, my own awareness of parenting also
underwent a change.
After coming back to work, because I wanted to be able to go home to my family as
early as possible, my consciousness of my work and the way I approached it also changed.
I have only just started on this parenting journey. Together with my wife, I want tocontinue to make the effort, so I can watch my child grow.
Takashi Himukashi, Group 2, Development Department, Engineering & Design Division, Media Business Division

19

Human Resource Management

Our Employees
The JVCKENWOOD Group is making efforts to create a safe and pleasant workplace, and to support each employee to grow by building
education and training systems.

Supporting career and skill development
JVCKENWOOD has implemented systematic training so that employees
can improve the skills necessary to perform their roles, and provide training
so they can utilize those skills within the organization. We have also
implemented a career development program to help employees realize thecareer aspirations they draw on from their background and experience.
The Career Development Program is comprised of the following: (1) a careerinterview; (2) career design training; and (3) career development support.
● Career interview
Employees meet with their superiors once a year to discuss their career
vision and career development topics to approximate individual motivations
and company expectations. This is the most fundamental part of the Career
Development Program.
● Career design training and career development support
In these training sessions, employees review their current work practices
while planning what they want to attain in the future. By considering theactions necessary to reach their goals, the employees gain an awareness ofvarious points. Further, this is an opportunity for them to comprehensively
consider the balance between their work and private lives, such as the
personal development needed to realize future goals and connections
with family and the local community, while discussing their career vision.
We have introduced a career development support system for employees,
including assistance in terms of both time and money, to take on further
challenges by applying what they have learned and what they are now
aware of.

CDP (Career Development Program)All employees

Employees at milestone years of employment (every five years)

(1)

(2)

(3)

Third-year training*Understanding of the career concept

Career design training for
30-year-old employees

Careerinterview

Career design training for
35-year-old employees(held once a year)

Career design training for
40-year-old employees

Careerdevelopment
support
Only those whohave taken
training courses
are qualified toapply.

[Open application system]

Career design training for
45-year-old employees[Open application system]

Career design training for
53-year-old employees

Helping ensure harmony between work and family life
The JVCKENWOOD Group is steadily enhancing its efforts to help employees
have a good balance between their work and family lives (work-life balance:
WLB), with the aim of positively embracing the diverse lifestyles and ways ofworking of employees.
● Supporting childcare and nursing
We have a range of programs to support our employees in balancing workwith family life, including childcare and nursing. The childcare-related
support system is applicable “until the first March 31 after the child reaches
12 years of age,” which is until graduation from elementary school.
● Reducing overtime work
Our ongoing efforts also include reducing overtime work to promote a dayto-day work-life balance (WLB).
We are conducting activities to encourage our employees to work with
an awareness of time management on their own. For example, each businesscenter has designated one day a week as its own “no overtime day.” On thisday, we urge employees to go home on time via an in-company broadcast
two hours before the end of business hours, asking them to adjust theirwork schedules so they can go home at the end of their regular work hours.
As a result of these activities, the total actual working hours havebeen decreasing since FY2012. Meanwhile, business expansion can cause
overtime work to increase. Therefore, we will step up efforts to reduce
overtime work.
● Encouraging employees to take annual holidays
In addition to the activities to reduce overtime work, we encourage
employees to use their annual paid holidays based on the target for thenumber of annual holidays to be taken that is set between labor andmanagement. As a result of such efforts, the total paid leave taken per year
has increased from 13.9 days (rate of taking paid leave: 60%) in FY2010 to
16.3 days (rate of taking paid leave: 65%) in FY2016.

20

Name of program

Description of eligibility
To take leave until the end of the April

Childcare leave following the child's first birthday or theend of the month in which the childreaches 18 months

Reducedworking
hours forchildcare

To reduce work time by up to two hours
per day, separately as provided by law,for childrearing until the first March 31
after the child reaches 12 years of age.

Pregnancy
leave forspouses

To take three days’ leave to stay with
their spouses during delivery.
To take five days’ leave per year to lookafter sick/injured children (10 days if

Sick/injured
there are two or more children) until thechildcare leave first March 31 after the child reaches 12

Status of usageof each system
in FY2016

Taken by
25 people

Used by
50 people
43 people
overall; 116
cumulativedays taken

Taken by36 people

years of age.

To take a cumulative maximum of one

Nursing leave year of leave per family member who

Taken bythree people

To reduce work time by up to two
Reducedworking hours hours per day for a cumulative total offor nursing one year, combined with nursing

Used bytwo people

To take five days’ leave per year to lookafter a family member who requires
nursing care (10 days if there are two or
more such family members).

Taken by
12 people

requires nursing care.

leave.

Nursing days
off

To be exempt from overtime work ofmore than 24 hours per month or 150
Limitation of hours per year and from late-night work
if so requested by employees raising
overtime work children who have not reached the firstand night work March 31 after becoming 12 years ofage or those taking care of family
members who require nursing care.
Employees who have left the company
System toregister retirees because of pregnancy, childbirth, Four people
havechildcare, nursing care or a spouseforbeing transferred can be registered for registered for
reemployment reemployment.
this system

HUMAN RESOURCE MANAGEMENT

Promoting the health of employees
Health Management
JVCKENWOOD, as part of the initiatives in JK3.0, is striving to become a company that is a good partner of all stakeholders andoffers its employees rewarding tasks, a sense of achievement and fulfillment, and the joy of working with excitement.
To achieve this goal, JVCKENWOOD has delivered the JVCKENWOOD Health Policy Statement as a management message toemployees to promote the “creation of a workplace environment that enables its employees to stay healthy and motivated atwork,” which is essential for each employee to demonstrate their abilities to the fullest.

Management

The JVCKENWOOD Health Policy Statement
JVCKENWOOD strives to create a workplace environment that enables its
employees to stay healthy and motivated at work to achieve its corporate
vision:“Creating excitement and peace of mind for the people of the world.”

GeneralAdministration
Division

Based on the JVCKENWOOD Health Policy Statement, we promote healthmaintenance and enhancement of employees through the collaborative
efforts of management and the relevant divisions, such as the Industrial
Health, Human Resources and General Administration Divisions as well as
the Health Insurance Society.

Industrial
HealthDivision

Diversity
Safetyand HealthCommittee

Human
Resources
Division

HealthInsurance
Society

Mental Healthcare Measures
As a mental healthcare measure, JVCKENWOOD introduced a stress check-up system in FY2016. In this way, we are working tofoster awareness about mental health and bring attention to the need to prevent mental health disorders, and to improve theworkplace environment. At the same time Introducing the stress check-up system, JVCKENWOOD set up a counseling service
hotline, through which counseling by external counselors is available, to establish a system to help employees solve their businessand private problems and issues.
We have also established a return-to-work support system when employees go back to work after an absence due to mental
health disorders. This system is designed to help employees’ smoothly return to work by introducing work responsibilities on a trial
basis, increasing their workload and working time in stages.
Overwork Prevention Measures
Long working hours is an important social problem that could lead tohealth problems and even death from overwork for employees.
We have been proactively working to reduce long working hours bytaking measures such as improving operational efficiency, establishingdays when people leave work on time and encouraging the use ofannual paid leave. In addition, we are striving to prevent damage tothe health of people by having those workers that work long hoursof overtime receive face-to-face guidance and a medical interview byindustrial physicians.
An industrial physician having an interview with a worker
doing long hours of overtime

Safety and Health Committee
We have established a safety and health management system inaccordance with the Industrial Safety and Health Act, and we have theSafety and Health Committee in place at workplaces with 50 or more
employees.
The Safety and Health Committee works to improve the workplaceenvironment by conducting reviews of industrial accidents that haveoccurred and the actual conditions of overwork and mental healthproblems, based on reports of survey results issued by the Secretariat.

Safety and Health Committee

21

Measures to Create an Environment for Innovation
JVCKENWOOD is taking various measures to revitalize the entire Company by proactively supporting and honoring employees
who drive innovation.
● Innovation Act
JVCKENWOOD has launched the Innovation Act—activities aimed atunearthing untapped ideas in the company, creating an environment
for organically creating innovation, and transforming itself into anorganization that stimulates innovation.
Innovation Act activities are mainly comprised of the following threeprograms.
1) Technology idea contest
We invite engineers and employees with expertise to submit a wide
range of new technology/product ideas. We will provide support, up
to the production of prototypes, for excellent ideas selected througha screening process.
2) Business idea audition
We hold auditions for new business ideas, set up entrepreneurshipwithin the company for excellent business proposals and support
commercialization.
3) Idea proposal/discussion box
We have set up a special internal website for employees to openly
post their ideas. We use it as a communication tool across businesssectors for open discussion about common threads or sharing
solutions for past cases.

● Corporate MusicWe play music with different concepts before and after work hours
every day via in-company broadcasting to help our employees todo their job while feeling good and motivated.
*These music tracks are provided by JVCKENWOOD Victor
Entertainment Corp.

Concept of music

Day of the week

MondayEnergizing music suitable for the start of a new week

Tuesday

Stimulating new music

Wednesday

Good old fun music that motivates people to go home at theend of the regular work hours

Thursday

Various genres of music to inspire people to get out of a rut

FridayUplifting music toward the weekend

Close of business

Refreshing music that prompts people to go home at the endof the work hours● MXP (MOST xxx PERSON) Award
JVCKENWOOD widely honors people who are doing “something good” in theirworkplace or the Company, with the aim of cultivating the corporate culture of“focusing on strengths” and improving internal communication.
(”xxx” as in “MOST xxx PERSON” varies from award winner to award winner
according to the reason for the award.)
Persons qualified for an award are those who have done something good in theirworkplaces or the Company even if it is not directly related to their jobs.
・A person who treats customers with great hospitality
・A person who brightens up the workplace
・A person who takes the lead in cleaning and tidying up the workplace
・A person who is actively engaged in social/volunteer activities in the local community
The award-giving program started in October 2016, and 36 overseas employees
and six domestic employees have received awards.

22

A photo from the awards ceremony

HUMAN RESOURCE MANAGEMENT● JVCKENWOOD Award
JVCKENWOOD gives the JVCKENWOOD Award for excellent initiatives
and business achievements in the JVCKENWOOD Group. Award winners
are selected based on the following criteria.
(1) Degree of contribution to the Group’s business performance(2) Degree of impact(3) Difficulty of the challenge(4) Coordination/initiative(5) Uniqueness/originality(6) Best practice(7) Degree of attainment of Vision 2020
Every year, 20 winners of the JVCKENWOOD Award, including three
special award winners, are selected.
At the awards ceremony● In-house Posters
We put up posters on various themes, such as messages to employees and introductions of co-workers in the JVCKENWOOD Group,in the Head Office, Business Centers and manufacturing sites. The aim is to foster a sense of togetherness among the Group’s
employees.

● Production of the Corporate Promotional Video “JVCKENWOODancing”
We produced a dance-based corporate promotional video called“JVCKENWOODancing” as a company/community promotional
activity in collaboration with the Yokohama Red Brick
Warehouse No.1 “Yokohama Arts Foundation” (“Yokohama
Red Brick Warehouse No.1”). This is the first creation of the “RedBrick Dance Project—connecting businesses/community withtheater,” planned by Yokohama Red Brick Warehouse No.1 as ameans of finding a new audience. This video can be viewed on
the Diversity page of JVCKENWOOD’s website and our official
Facebook page, our official YouTube channel and the website of
Yokohama Red Brick Warehouse.
The cast members (dancers) of the promotional video werea wide range of JVCKENWOOD people who responded to aninternal invitation regardless of their previous dance experience,©Kota Sugawara
gender, age or department.
The dance was originally choreographed for this programand expresses “diverse employees working with excitement and feeling the joy of work” and “a spirit of togetherness in thecompany.” In addition, the video was directed by highlighting the personalities of individual employees.
The video was shot at JVCKENWOOD’s business centers, including the Head Office & Yokohama Business Center and Hakusan
Business Center, as well as Yokohama Red Brick Warehouse, a historic building representing Yokohama with a theater and gallery
space. The video recalls the history and culture of Yokohama City where JVCKENWOOD is based and connections between
JVCKENWOOD and the local community.

23Social and Environmental Initiatives (CSR)

Concept of Corporate Social Responsibility
While businesses provide people with useful products, services and employment opportunities, they also create a burden on society.
Environmental and social problems are closely related to businesses, particularly for manufacturers, because of the waste, pollution,
massive consumption of resources and energy, and population concentrations that are associated with the manufacturing process.
However, our society would no longer exist if we got rid of businesses.
The JVCKENWOOD Group is aware that the mere existence of businesses has an impact on society. So we are providing
excitement and peace of mind as one part of our corporate activities to reduce our impact on and contribute to society according toour corporate vision.

About Our Environmental Activities
Environmental Policies
To preserve the global environment and resources and prevent pollution, we will manage our business activities, our productdevelopment, and our services by making ongoing improvements with a full awareness of our environmental impact.

1
2
3
4

Prevent global warming by promoting the reduction of CO2 emissions throughout the product lifecycle, including our businessactivities, by developing technologies and products that reduce our environmental impact.
Use the limited global resources effectively to create a sustainable society by reducing the resources we use within a framework of 3R
activities and progressively using eco-friendly materials.
Manage chemicals that affect the world’s environment and biosphere, continue to reduce their consumption, and switch to eco-safe
materials.
Recognize the effect on biodiversity of all our business activities, product development and services and comprehensively reduce ourenvironmental impact in harmony with the natural environment.

5Comply with environmental legislation and other requirements with which we agree.

6

Educate employees on the environment to cultivate greater environmental awareness.

▼ For details of our environmental activities, please visit our website.
http://www.jvckenwood.com/en/corporate/csr/activity/

24

ENVIRONMENTAL INITIATIVESCSRGreen Procurement
JVCKENWOOD is continuously working to reduce theenvironmental impact of the products we produce and sellthroughout the product lifecycle, from the production phase,the use and end-of-use phase to the end-of-life phase, including
recycling and disposal. As part of such efforts, we attach
importance to preferentially procuring parts and products with alow environmental impact.
Based on our original green procurement guidelines, we
conduct chemical substance inspections on the materials we
procure and green procurement assessments. In the green
procurement assessment, each supplier of JVCKENWOOD isrequested to conduct a self-assessment of its chemicals control
system and the status of their efforts, with the objective of
encouraging each supplier to establish and maintain thecontrol system for chemicals contained in its products anddeploy continual improvement of that system. After reviewing
the assessment results, we may conduct audits on suppliers
depending on these results. In this manner, we conduct
activities to reduce our adverse effects on the Earth and people
in cooperation with our suppliers.
We have increasingly been procuring parts from overseas
parts procurement partners, and will further accelerate ouractivities for checking their parts procurement processes,
conducted by staff members in our overseas production bases inaccordance with the green procurement guidelines.

Green procurement guidelines

Green procurement
assessment form

▼ For the green procurement guidelines, please visit our website.
http://www.jvckenwood.com/en/corporate/csr/activity/green/

JVCKENWOOD Group Social Contribution Activities
Initiatives for future generations● Visiting Environmental Lecture Program
JVCKENWOOD has been providing visiting environmental lectures by using its
Forest Notes, an Internet service that transmits sounds of the forest in real timethrough a wooden wireless active speaker. It has also used “the Touchable
Globe,” an interactive digital globe measuring about 80 cm in diameter thatoffers the user a first-hand experience of the dynamic environment of the
Earth, such as global warming and the typhoon/tsunami generation processes,
and migration of migratory birds.

25

● Accepting Students on Social Studies Visit and Work Experience
We let students visit our workplaces and experience work to help those
who will lead the way in the next generation. This helps them to obtain
practical knowledge and skills, know the significance of working andtheir aptitude for the job, and cultivate the willpower to decide theirown career path.

● Providing 5S Education to an Elementary School (Indonesia)
PT. JVC Electronics Indonesia conducted CSR activities at SDN Kutamekar
II Elementary School in cooperation with about 34 companies with thea i m o f f o s t e r i n g m o r a l s a n d d i s c i p l i n e i n s c h o o l c h i l d re n . D u r i n g t h eactivities that were mainly focused on 5S education activities (5S: Sort,
Set, Shine, Standardize, and Sustain), we taught the children how toclean the classroom and then cleaned the classroom together with them.

● Providing an Opportunity for Social Communication (Malaysia)
JVCKENWOOD Electronics Malaysia Sdn. Bhd. provided an opportunity
for students of Shibaura Institute of Technology to get the picture of
the manufacturing site of Japanese companies operating overseas.
T h r o u g h t h i s o p p o r t u n i t y, s t u d e n t s w e r e a b l e t o l e a r n p r a c t i c a lknowledge they could not gain in the classroom.

Initiatives as members of local community● Cleaning Activities/Disaster Recovery Activities
We conduct cleaning activities on a continuing basis in Tobishimaan d th e m out h of A k a g a wa R i v e r i n Ya ma g a ta Prefec ture, Tenry u
R i v e r f l o w i n g t h ro u g h N a g a n o P re f e c t u re , a n d a re a s s u r ro u n d i n g
our business centers. In addition, we continuously conduct disasterrecovery activities in Miyagi Prefecture, and cooperate in activities
organized by local governments and communities.

26

CSR

● Charity Event Sponsored by a Sports Club (Malaysia)
J V C K E N W O O D E l e c t ro n i c s M a l a y s i a S d n . B h d . c o - s p o n s o r s
and supports a coloring contest held in the local community
under the sponsorship of a sports club. In addition, we
contribute prizes for a free health checkup and counseling
event. We conduct these activities to build and strengthen
good relationships between local employees and residents
living in areas surrounding the plant.

Initiatives for the natural environment● Managing a Dragonfly Pond
JVCKENWOOD created a biotope dragonfly pond on thepremises of JVCKENWOOD Head Office & Yokohama BusinessCenter in 2006 as part of “The Making of Forest of Keihin
P ro j e c t , ” c o n d u c t e d j o i n t l y b y t h e C i t y o f Yo k o h a m a a n dcorporate partners. We have participated from the very
beginning in “How Far Dragonflies Migrate Forum,” a
research project on dragonfly migration carried out by local
governments, experts, citizens and neighboring companies tostudy the relationship between corporate greenery areas andbiodiversity, and we monitor the habitat of dragonflies andother aquatic insects. When the dragonfly pond was created,
we transplanted only one species of waterweed from a nearbyr i v e r. H o w e v e r, t h e p o n d i s c u r r e n t l y i n h a b i t e d b y m a n y
species of waterweed, aquatic insects, Japanese rice fish andother life forms. We also check on the arrival and habitationof rare species during a stationary observation.
● Forest Restoration Activities/Mangrove Planting and Forest Protection Activities (Thailand)
JVCKENWOOD Optical Electronics (Thailand) Co., Ltd. participated inforest restoration activities in Tatton National Park and joined in the social
contribution activity to plant a total of 1,000 trees for environmental
protection.
JVCKENWOOD Electronics (Thailand) Co., Ltd. also engaged in avolunteer activity for forest protection to build a dam. The aim of thisactivity is to carry out efforts to slow down global warming and hydrate
forests as a tool to reduce damage caused by floods. In addition, ouremployees took part in a mangrove planting activity in Samut Sakhon
Province.

● Participating in a Tree-planting Program by an Environment Management Agency (Indonesia)
PT. JVC Electronics Indonesia participates in the “1,000 mahogany
tree planting program carried out by Karawang District Environment
Management Agency.”

27

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

Corporate Organizations
1. Matters Relating to the Board of Directors and Directors
The Board of Directors, regarded as an organization thatmakes fundamental and strategic decisions while overseeing
business execution, holds regular meetings once a monthand extraordinary meetings when necessary to deliberateand decide on basic management policies and importantmatters as well as monitor and oversee the status of businessexecution. Directors’ terms of office are one year to maketheir responsibilities clear and to make management decisionmaking processes quicker. In addition, we proactively recruit
external directors to increase the transparency of decisionmaking and lead innovation and governance.
JVCKENWOOD, in December 2015, established theNomination and Remuneration Advisory Committee, for which
all of its external directors serve as committee members, withthe aim of strengthening the independence and objectivityof the functions of the Board of Directors. The Nomination
and Remuneration Advisory Committee has since proposed
JVCKENWOOD the representative candidate to the Boardof Directors, and reviewed the appropriateness of director
candidates and directors’ compensation plans proposed by
the representative and others, and reported its opinions.
The Board of Directors has determined director candidates
and directors’ compensation, taking into consideration theopinions stated by the Nomination and Remuneration Advisory
Committee. As of June 23, 2017, Junichi Hikita, who serves
as external director, chairs the Nomination and Remuneration
Advisory Committee, and Yasuyuki Abe and Shinjiro Iwata,
who are external directors, serve as committee members.
Since June 2016, JVCKENWOOD has appointed an
external director independent from and neutral to the
management of the Company as the Chairman of the Boardof Directors. As of June 23, 2017, Yasuyuki Abe, who serves
as external director, chairs the Board of Directors.
The Articles of Incorporation of the Company provide for a
maximum of nine directors. JVCKENWOOD has nine directors,
and they were appointed at the 9th Ordinary General Meetingof Shareholders held on June 23, 2017.
To ensure the effectiveness of the management
supervisory functions based on experience, achievements,
professional viewpoints, insights and other attributes, as wellas independence in terms of having no potential conflictsof interest with general shareholders, JVCKENWOOD elects
candidates for external directors, in principle, by taking
such procedures as confirming their business background(i.e. confirming they have not been major shareholders of
28

JVCKENWOOD or engaged in the execution of operations of
any of JVCKENWOOD’s main business partners) based on its
independence standards and policies. Since June 23, 2017,
JVCKENWOOD has appointed Yasuyuki Abe, Junichi Hikita,
and Shinjiro Iwata as external directors.
2. Matters Relating to the Executive Officer System
JVCKENWOOD has adopted an executive officer system,
differentiating its business execution function to clarify
management res pons i bi l i ty and bus i nes s ex ecut ion
responsibility. Since June 23, 2017, nine directors (including
three external directors) and 13 executive officers (sixconcurrently holding positions as directors) have been
performing their duties.
The Board of Directors, which leads innovation andgovernance, works to strengthen governance with an
external director serving as the Chairman, makes decisionst h ro u g h d i s c u s s i o n s b e t w e e n e x t e r n a l d i re c t o r s a s
independent directors and directors serving concurrently
as executive officers, and delegates authority for businessexecution to executive officers. In addition, the President
and the Representative Director of the Board serves as theChief Executive Officer (CEO) and is responsible for bothmanagement supervision and business execution. According
to the decisions at meetings of the Board of Directors, theCEO chairs the Board of Executive Officers’ meetings, andeach executive officer executes business operations withresponsibility.
JVCKENWOOD, in June 2016, established the positionof regional Chief Operating Officer (COO) for executives
who assume responsibility for the overall operation of all
the businesses in the Americas, EMEA (Europe, Middle East
and Africa), Asia Oceania and China, as well as the positionof Chief Operating Officer (COO) in the Automotive sector,
Public Service sector and Media Service sector. In addition, weestablished the positions of Chief Financial Officer (CFO), Chief
Strategy Officer (CSO), Chief Technology Officer (CTO), andChief Administration Officer (CAO) for officers who oversee
corporate divisions, and appointed executive officers to thosepositions. In this way, we have shifted to a new execution
system under which appointed executive officers support the
CEO towards the achievement of Vision 2020, the Mediumto Long-Term Business Plan released in May 2015.

CORPORATE GOVERNANCE

3. Matters Relating to the Audit & Supervisory Board andAudit & Supervisory Board Members
JVCKENWOOD is a company with an Audit & Supervisory
Board. Audit & Supervisory Board Members are responsible forthe corporate audit function and their duties include attending
Board of Directors’ meetings and other important meetings,
as well as holding Audit & Supervisory Board meetings, andauditing the execution of Directors’ duties, business executionof the entire Group and corporate accounting.
Since June 23, 2017, four Audit & Supervisory Board
Members (including two external audit & supervisoryboard members) have been performing their roles andresponsibilities.
JVCKENWOOD works to ensure the effectiveness of the

management supervisory functions based on experience,achievements, professional viewpoints, insights and otherattributes, as well as independence in terms of having nopotential conflicts of interest with general shareholders. To thisend, it nominates candidates for external audit & supervisoryboard members, in principle, after confirming the businessbackgrounds (i.e. confirming they have not been major
shareholders of JVCKENWOOD or engaged in the execution ofoperations of any of JVCKENWOOD’s main business partners)
based on its independence standards and policies, with theapproval of the Audit & Supervisory Board. Since June 24,
2016, JVCKENWOOD has appointed Shojiro Asai and Nagaaki
Ohyama as external audit & supervisory board members.
As of June 23, 2017

Organization System
Shareholders' Meeting
Appointment and removal

ReportAppointment and removal

Appointment and removal

ReportReportAudit & Supervisory Board
Four Audit & Supervisory Board Members(including two from outside the Company)

Audit/Report

Nomination and Remuneration
Advisory Committee
Three external directors

Audit

Consultation

Board of Directors
Nine Members of the Board of Directors(including three from outside the Company)

Recommendation

Financial audit

ReportInternal
Governance Oﬃce

Appointment and removal

Corporate
Audit Oﬃce

Board of Executive Oﬃcers
13 Executive Oﬃcers(including six concurrently holding
positions as Directors)

Accounting Auditors

ReportAudit
Internal control
Internal audits

Compliance Committee

President &Chief Executive Oﬃcer

PL Board(CEO)

Environment Board
COO
Americas

COO
EMEA*

COO AsiaOceania

COO
China

(Japan)Assistantto CEO

General Manager of Automotive
OEM Business Division
General Manager of Automotive
Consumer Business Division

Automotive
sector COO*

Operations
Operations
Operations

Operations
Operations

Public Service
sector COO

Operations

Operations
Media Service
sector COO

Operations

Automotive sector

OEM Business Division
Consumer Business Division

Engineering & Design Division,
Q.C.D. Innovation Division, etc.
Public Service sector
Communications Systems Division
Healthcare Business Division
JVCKENWOOD Public &Industrial Systems Corporation

Media Service sector
Media Business Division

JVCKENWOOD
Victor Entertainment, Corp.

Deputy COO
Americas
Operations

Operations

OperatingCompany(Americas)

OperatingCompany（EMEA*）

Operations

Operations

OperatingCompany（Asia Oceania）

OperatingCompany(China)Other
Aﬃliates

Operations

Domestic
Sales
Division

Information Disclosure Council（Chief Strategy Oﬃcer）
CSO

Assistant to CSO（Chief Financial Oﬃcer）
CFO（Chief Technology Oﬃcer）
CTO（Chief Administration Oﬃcer）
CAO
Note* EMEA: Europe the Middle East and Africa
COO: Chief Operating Oﬃcer
SCM: Supply Chain Management

Operations

Operations
General Manager of
SCM* Department

Corporate Division

Operations
Operations
Operations

29

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

Internal Audit System
At JVCKENWOOD, the Corporate Audit Office conducts
internal audits on the overall business execution of theentire Group, and internal control evaluations on financial
reports (J-SOX evaluations), in accordance with the audit plan
approved by the Board of Directors, and reports the audit
results to the Board of Directors that serves as an oversightorganization. The Corporate Audit Office consists of nine staff
members engaged in internal audits and J-SOX evaluations.
The Corporate Audit Office performs a broad range of onsite
inspections on the activities of the Company as well asaffiliated companies of the Group, and monitors operationsof the internal control systems in an integrated fashion. In
this way, it works to identify issues at an early stage and froma standpoint independent from business operating divisions,while helping to ensure problems do not occur.
If there is any sign of fraud, etc. committed bymanagement, there is a reporting route in place requiring
the Corporate Audit Office to report it to Audit & Supervisory
Board Members.

Status of the Accounting Auditor
During the fiscal year ended March 2017, accounting auditsof JVCKENWOOD and the Group were performed by Deloitte

Touche Tohmatsu Limited.

Collaborative Work among Internal Audits, Audits by Audit & Supervisory Board Members and Accounting Audits
All the Audit & Supervisory Board Members including External
Audit & Supervisory Board Members perform management
audits by themselves, attend Board of Directors’ meetings,
obtain the results of internal audits performed by the
Corporate Audit Office in relation to the Group’s overallbusiness operations, and exchange and confirm relevant
information by holding meetings with the Corporate Audit
Office whenever necessary.
At the Audit & Supervisory Board meeting, the resultsof accounting audits performed by accounting auditors are

regularly reported to Audit & Supervisory Board Members.
Accounting auditors regularly have a meeting with the
Corporate Audit Office and exchange information.
Thus, the Corporate Audit Office, Audit & Supervisory
Board Members and accounting auditors enhance theeffectiveness of audits through mutual collaboration.
The Corporate Audit Office always works closely with theInternal Governance Office, the Group management parties,
and other internal divisions relevant to compliance mattersand reinforces monitoring functions.

Compliance Activities
JVCKENWOOD views compliance as a response to the needsof society, not merely as adherence to laws and ordinances.
This means that the objective of compliance is not merely
to comply with laws and regulations, but to respond to thesocial needs behind them through adherence to them. With
the recognition of this objective, the Company enhancescompliance activities of the Group comprehensively throughthe Compliance Committee led by the CEO.
The JVCKENWOOD Group Compliance Activity Standards
that target the entire Group were established in March
2010. The booklets (in three languages) were circulated to
all Group officers and employees via the intranet and thecompliance supervisors appointed by the Board of Directorsof the Company at all affiliated companies to ensure the fullawareness of all Group members.
Compliance education is supervised by the Internal
Governance Office under the leadership of the CEO.
30

Compliance training by using e-learning training programs via
the intranet and practical training is provided to officers andemployees of the Company and its major affiliated companies.
If any suspicions about compliance matters arise, they
will be directly reported to the Internal Whistleblower
System (Helpline) set up by the Internal Governance Officein accordance with the Internal Whistleblower Rules and thesaid regulations, and corrective measures will be taken under
the leadership of the Compliance Committee. In addition, theAuditing Informer System is in place at the Audit & Supervisory
Board office, and if suspicions arise about any accounting
or auditing operations, they will be directly reported to thesystem. These systems serve as infrastructure for exclusive
communication to protect the confidentiality of the contents
that are reported and the reporters’ names, and are operated
by assigned staff to detect and correct activities that do notadhere to the needs of society.

CORPORATE GOVERNANCE

Enterprise Risk Management Activities
Key Philosophy and Activities
The JVCKENWOOD Group regards risks as “factors that
could inhibit the achievement of business plans.” The
Group regularly identifies risks faced by all its business sitesaround the world to recognize them clearly, set issues totackle to prevent the realization of the identified risks andminimize their impact or damage, and resolve those issues
systematically. In the meantime, some of the identified risks
could affect the entire Company and thus require problem-

solving activities on a company-wide scale and from acompany-wide perspective. Management takes the initiativein implementing measures to resolve such problems. We
consider that the most effective corporate response to risks
is to identify them correctly in the course of our day-to-day
corporate activities, understand the problems in reducing risks,and have all our business sites around the world collaborate
with management to resolve those problems.

Risk Management System
JVCKENWOOD implements the risk surveillance process shownin the diagram below at all its business sites around the world
every year. The purpose is to ensure the risk management
activities are conducted through collaboration between
its business sites and management. In the risk surveillance
process implemented throughout the year, we quantitatively
assess the significance of risks identified by the business sites,
examine problems in reducing risks of high significance, andwork on resolving those problems and confirm the effects. The
Enterprise Risk Management Conference, which is comprisedof members chosen from company executives and chaired by
the Chief Administration Officer (CAO), keeps track of the
progress and results of such activities. For risks that need tobe addressed on a company-wide scale and from a companywide perspective, company executives in charge selected fromamong the members of the Enterprise Risk Management
Conference systematically provide support to solve problems.

Risk Surveillance Process implemented by all the Group’sbusiness sites around the world

Risk management led by management

Automotive sector

Public Service sector

Corporate Division,
Head OfficeMedia Service sector

Domestic andoverseas affiliates

Implementation of the Risk
Surveillance Process
Risk
identification

Risk
assessment

Formulationof risk
response
measuresRisk
response
implementation

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

Interimmonitoring

Final review

Reassessment of risks

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

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

Business Continuity Management (BCM)
Facing various risks, in particular emergency situations,
including earthquakes and other natural disasters,
spread of epidemics, and global expansion of terrorism,
the JVCKENWOOD Group recognizes that its first social
responsibility to stakeholders is to put the utmost priority on
preserving human life, and its second is to deliver products
and services. To fulfill these responsibilities, the Group has
defined the basic principle of the Business Continuity Plan
(BCP) as “contributing to social security and safety throughcontinuing business by swiftly reinitiating business operations
after the occurrence of an emergency situation.” Based on
this policy, the JVCKENWOOD Group has been conducting
BCP activities at all its business divisions.
On March 31, 2017, JVCKENWOOD received certificationfrom the National Resilience Promotion Office, Cabinet
Secretariat, as a business operator contributing to the buildingof national resilience against disasters (Resilience Certification)
in recognition of its endorsement of the objective ofpromoting the building of national resilience and active
engagement in efforts related to business continuity.
JVCKENWOOD will take this opportunity to make efforts
to further enhance the quality of BCM.

31GLOBAL BRAND STRATEGY

Global branding campaign through motorsport
Motorsport is on the cutting-edge of technology and is regarded as a dramatic event requiring racing teams to push their limits in
intense competition.
Sharing a commitment to create excitement for millions through the use of technologies, JVCKENWOOD conducts sponsorship
activities for motorsport to boost its brand exposure and visibility based on its corporate vision of “creating excitement and peace ofmind for the people of the world.”

WTCC（FIA World Touring Car Championship）

The WTCC(FIA World Touring Car Championship) is the world’s top championship for touring cars (remodeled stock cars) organizedby the FIA(Fédération Internationale de l'Automobile). Its predecessor was the ETCC (Europe Touring Car Championship).
Together with the FIA Formula One Championship (F1), FIA World Rally Championship (WRC) and FIA World EnduranceChampionship (WEC) and other championships, WTCC is one of the major world championships that can truly claim the title“World Championship.”
JVCKENWOOD started to partner the WTCC in 2009 and stepped up its commitment in 2013 to become an Official Series
Partner of the WTCC in all racing series throughout the year.
The WTCC is a championship which tours the world and matches the business activities of JVCKENWOOD, which are also
expanding globally. In addition, since the WTCC is based on remodeled stock cars, it parallels JVCKENWOOD, which isstrengthening its operations in areas centering on the car electronics businesses, as well as land mobile radio equipment andprofessional cameras. In addition, WTCC events are broadcast in 108 countries around the world, leading to a strong media impact.
Hence this sponsorship is expected to contribute significantly to JVCKENWOOD’s branding and business expansion.

32

GLOBAL BRAND STRATEGY

Official Supplier of McLaren Honda-F1 Team

Having signed an official supplier contract with McLaren in 1991, KENWOOD has been supplying wirelessradio communication systems and providing extensive technical support through its professional staff. The
partnership is the longest McLaren has had with a Japanese company.
The partnership between KENWOOD and the McLaren-Honda F1 Team is the relationship of colleagues
fighting together for victory in the battlefields of a Grand Prix, going beyond the relationship of racing
team and sponsor.
October 2016 marked the 25th anniversary since KENWOOD started supplying wireless radio
communication systems to the McLaren-Honda F1 Team.

Super GT

Super GT is Japan’s premier international series of motor racing for touring cars (remodeled stock cars) authorized by the FIA(Fédération Internationale de l’Automobile). With major Japanese automobile manufacturers competing proactively in thischampionship, Super GT features a mixed-class racing competition combining GT500 and GT300 classes, a rare style of racing,allowing fans to enjoy intense racing with frequent overtaking.
JVCKENWOOD has been supporting the GT-Association, the organizer of the racing series, and supplies official on-board
cameras for television broadcasting in 22 racing cars, including all GT 500 class cars.

Contracted Racing Drivers/Team Director (KENWOOD)
KENWOOD has appointed popular racing drivers and a team director who are top-level players in Super GT, Japan’s premier motorsports
racing, as its brand ambassadors.

Juichi Wakisaka, Team Director（LEXUS TEAM LEMANS WAKO'S）
Juichi Wakisaka is a high-profile PR ambassador of Super GT who
retired from driving after the conclusion of the 2015 Super GT
Series season and assumed the Team Director position from the2016 season.

Masataka Yanagida, Racing Driver（Audi Team Hitotsuyama）
The Super GT Series Champion in 2011 and 2012

Takuya Izawa, Racing Driver（RAYBRIG TEAM KUNIMITSU）
A talented ace driver who is gaining in
popularity while also improving his
driving technique.

33

Overview of the JVCKENWOOD Group

GROUP OVERVIEW

Overview of the JVCKENWOOD Group◆ Sales Composition for FYE 3/’
17
Others 2%
Major Business Area
Media Business,
Entertainment Business

Major Business Area

24%

Media Service
sectorPublic Service
sectorMajor Business Area

Consumer Business,
OEM Business

Automotive
sector50%

24%

Communications Systems Business,
Professional Systems Business,
Healthcare Business,

Production and Sales Structure
Production companies

Six companies in Japan and ﬁve overseas companies
The overseas production ratio is

Overseas business operation companies

88% of the total

19 companies
The overseas sales ratio is

59% of the total*Production companies and overseas business operation companies as of June 1, 2017

◆ Production Composition by Region (FYE 3/’
17)◆ Sales Composition by Region (FYE 3/’
17)

Americas 1%
Europe Japan

9% 12%

China

33%

34

Southeast
Asia

45%

Others 2%
Asia

14%
Europe

Japan

41%

18%

Americas25%

Financial Highlights

FINANCIAL HIGHLIGHTSJVCKENWOOD Corporation and Consolidated Subsidiaries
Fiscal year ended March 31

Net sales(Billions of yen)

300

292.2

285.0

Operating income(Billions of yen)

299.3

8

6.8

5.8

6

4.5

4
200

2

0

FYE 3/’15

FYE 3/’16

0

FYE 3/’17

Total assets / Net assets■Total assets■Net assets■Interest-bearing debts

279.0

80

262.3

256.3

0

■Net debt

73.6

69.2

70.3

60

180

60

FYE 3/’17(Billions of yen)

240

120

FYE 3/’16

Interest-bearing debts / Net debt

(Billions of yen)300

FYE 3/’15

40

79.8

FYE 3/’15

57.6

61.5

FYE 3/’16

FYE 3/’17

20
0

26.4

28.5

FYE 3/’16

FYE 3/’17

18.5

FYE 3/’15(Millions of yen)

Net sales

FYE 3/’
15

285,010FYE 3/’
16

292,195

FYE 3/’
17299,278

Operating income

6,757

4,494

5,781

Ordinary income

3,362

1,291

3,616

Net income (loss) attributable to owners of the parent company

4,795

3,401

Total assets

279,041

256,334

262,297

Net assets

79,762

57,56561,514Equity per share (yen)521.57376.57403.31（6,727）

Shareholders' equity ratio (%)*

25.9

20.4

21.4

Retained earnings

22,421

25,12817,722

Interest-bearing debts

73,61869,20270,263Net debt

18,541

26,43728,456

Cash ﬂow from operating activities

8,575

12,25815,369Cash ﬂow from investing activities(3,857)(8,395)(14,390)

Cash ﬂow from ﬁnancing activities(7,514)(14,967)(1,083)

Number of employees

17,66817,88418,051*(Equity ‒ Minority interests) ÷ Total assets

35Corporate History
JVCKENWOOD Corporation

2007

July
Aug.

2008

Oct.
May
Oct.

2009

June

2010

Dec.
Mar.

Dec.
2011

Aug.
Oct.

2012

Apr.

2013

June
Nov.
Mar.
June
July

2014

Jan.
Mar.
Sept.

2015

Mar.
Apr.
May

2016
2017

Apr.
Mar.
Apr.

Victor Company of Japan, Limited (JVC) and Kenwood Corporation (Kenwood) entered into an agreement on a capital and businessalliance to cooperate in their Car Electronics and Home Audio Businesses and integrate their management
JVC increased its capital through a third-party allocation of new shares of a total of 35 billion yen to Kenwood and multiple
investment funds managed by SPARX International (Hong Kong), Ltd.
JVC and Kenwood established the technology development joint venture J&K Technologies Corp. (J&K Technologies)
JVC and Kenwood signed an agreement to integrate their management through the establishment of a joint holding company(stock transfer)
JVC and Kenwood established the joint holding company JVC KENWOOD Holdings, Inc. (JVCKENWOOD) through a stock transfer(JVCKENWOOD’s shares were listed on the First Section of the Tokyo Stock Exchange)
J&K Technologies was renamed J&K Car Electronics Corporation (J&K Car Electronics), making J&K Car Electronics a virtuallyindependent company engaged in the Car Electronics Business
Launched the MDV-313, the first car navigation system for which the same JVC and Kenwood platform was adopted (Photo 1)
Implemented adjustments to earnings results of JVC for the period between the fiscal year ended March 31, 2005 and the second
quarter of the fiscal year ended March 31, 2010 (including consolidated financial statements as a consolidated subsidiary of
JVCKENWOOD), and to those of JVCKENWOOD for the period from its establishment on October 1, 2008 to the second quarter ofthe fiscal year ended March 31, 2010
Undertook steps to relocate the Company’s head office and realign business divisions to promote Group management integration,enhance operating efficiency and maximize integration effects
JVC KENWOOD Holdings, Inc. changed its name to JVCKENWOOD Corporation
Completed an absorption-type merger of its three subsidiaries: Victor Company of Japan, Limited, Kenwood Corporation, andJ&K Car Electronics Corporation
Acquired a total of 45% of the outstanding shares of Shinwa International Holdings Limited, a large-scale Hong Kong-based
manufacturer and seller of CD/DVD mechanisms for car AV equipment (in-car CD/DVD mechanisms), making it into an
equity-method company
Distributed dividends (¥5/share) for the first time since the establishment of JVCKENWOOD
Formulated a new “Medium-Term Business Plan,” which covered the period through to the fiscal year ended March 31, 2016
Launched DLA-VS4800, the world’s first mass-production model of the professional-use D-ILA projector, which features an 8K
high-definition display
Converted Shinwa International Holdings Limited into a consolidated subsidiary
Took over all of the shares of TOTOKU Nagaoka Corporation through an absorption-type corporate split from TOTOKUElectric Co., Ltd., and changed the corporate name from TOTOKU Nagaoka to JVCKENWOOD Nagaoka Corporation
Invested in WiL FUND I, L.P. to accelerate growth strategy partnership with domestic and international venture companies
Signed an alliance with AIRBUS DEFENCE AND SPACE to develop and commercialize public safety wireless broadband systems
Obtained 100% ownership of EF Johnson Technologies, Inc., a company focused on delivering mission-critical, digital P25
communications solutions to the North American market
The JVCKENWOOD Group launched the NX-5000 series, the NEXEDGE series of multi-mode digital radio systems that compliedwith the P25 standard (Photo 2)
Launched GY-LS300CH, a professional 4K memory card camera recorder (Photo 3)
Converted ASK Industries S.p.A., the European In-vehicle Component Company, into a consolidated subsidiary
Reviewed the medium-term business plan announced in fiscal 2012 and formulated Vision 2020, the new medium- to Long-TermBusiness Plan that looks ahead to fiscal 2020
Established JVCKENWOOD Public & Industrial Systems Corporation, aiming to expand the Professional Systems BusinessAnnounced the development of “EXOFIELD” out-of-head localization sound field processing technology, which enables
reproduction and localization of the sound field of speakers in a listening room with headphones.
Completed an absorption-type merger of two consolidated subsidiaries; JVCKENWOOD Kenex Corporation and JVCKENWOOD
Home Electronics Corporation.

1. MDV-313 integrated car navigation systemmanufactured by Kenwood and JVC

36

2. NEXEDGE NX-5000 series of multi-mode
digital radio systems that are compliant
with the P25 standard

3. GY-LS300CH professional 4K memory card
camera recorder

CORPORATE HISTORY

Former Victor Company of Japan, Limited
1927

Established Victor Talking Machine Company of Japan, Limited

1939

Produced the first TV receiver in Japan (Photo 4)

1956

Developed the 45/45 stereo record format

1963

Introduced KV-200, the world’s smallest 2-head professional VCR

1976

Introduced HR-3300, the world’s first VHS recorder (Photo 5)

1986

Introduced GR-C7, the world’s smallest and lightest VHS-C video camera

1991

Introduced AV-36W1, the first 16:9 TV in the industry

1995

Introduced GR-DV1, the world’s first pocket-sized digital camcorder

2003

Introduced GR-HD1, high-definition digital camcorder
Introduced EX-A1, compact home stereo component system

2005

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

2006

JVC was awarded the prestigious IEEE Milestone for the development of VHS

2007

Introduced Everio GZ-HD7, the world’s first full HD hard disk camcorder for consumers (Photo 6)

2009

Introduced the JVC global brand throughout Japan
Introduced the GD-463D10, full HD 3D LCD monitor for professional use

2010

Developed FALCONBRID, high-speed image processing in HD camcorders

2011

Merged into JVCKENWOOD Corporation

4. The first TV receiver in Japan

5. HR-3300, the world’s firstVHS home video recorder

6. Everio GZ-HD7 full HD hard disk
camcorder

Former Kenwood Corporation
1946

Established as Kasuga Radio Co., Ltd.

1957

Began exporting the FM-100 FM tuner for the first time as a Japanese manufacturer (Photo 7)

1960

Renamed Trio Electronics, Inc.

1962

Launched TW-30, the industry’s first transistor amplifier

1966

Introduced fully transistorized audio products for the first time in the industry

1978

Entered the professional radio equipment field in Japan

1980

Entered the car audio field in the U.S. and launched the KENWOOD brand car audio in Japan (Photo 8)

1983

Entered the business & industry sector of professional radio field in the U.S.

1986

Renamed Kenwood Corporation

1991

Official supplier contract with McLaren F1 Team

7. FM-100 FM tuner

8. The KXC-757, a representative model ofthe first car audio series lineup

Developed and began to supply wireless radio systems for the McLaren F1 Team’s exclusive use
1992

Entered the car navigation system field, launching KNV-100, the industry’s first 1DIN-size GPS car navigation system

1997

Supplied the Real Focus Sound System for Subaru Forester and Legacy cars, establishing a base for the OEM Business

2004

Acquired the wireless radio business of Toyo Communication Equipment Co., Ltd.

2005

Technical and capital alliance with Icom Inc. to jointly research the standardization oftechnical specifications for digital wireless radio equipment

2007

Converted Zetron, Inc., a U.S. systems-based communication company into a subsidiary
Exclusive sales agreement with Garmin Ltd. the largest PND maker in the U.S.
for AV-integrated navigation systems in the consumer market (Photo 9)

2008

Launched a voluntary organization jointly to contribute to the development of land mobile radios in the Americas

2010

Launched land mobile radio equipment for emerging markets TK-U100, TK-2000/3000

2011

Merged into JVCKENWOOD Corporation

9. DNX7100, an AV-integrated
navigation system model featuring
Garmin navigation software

37

Network（Overseas）

NETWORK (OVERSEAS)

As of April 1, 2018

Manufacturing Companies
Name

Location

Main Products

JVCKENWOOD Electronics Malaysia Sdn. Bhd.

Johor, Malaysia

Telecommunications equipment and car electronics

JVCKENWOOD Electronics (Thailand) Co., Ltd.

Pathumthani, Thailand

Media equipment and professional products

JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.

Nakhonratchasima, Thailand

Car electronics and media equipment

PT. JVC Electronics Indonesia

Jawa Barat, Indonesia

Car electronics equipment

Shanghai Kenwood Electronics Co., Ltd.

Shanghai, China

Car electronics and telecommunications equipment

Americas: Business Operation Companies

EMEA: Business Operation Companies

Name

Location

Name

Location

JVCKENWOOD USA Corporation

U.S.A.

JVCKENWOOD U.K. Ltd.

The United Kingdom

JVCKENWOOD Canada Inc.

CanadaJVCKENWOOD Italia S.p.A.

Italy

JVCKENWOOD Latin America, S.A.

PanamaJVCKENWOOD Iberica, S.A.

Spain

JVCKENWOOD do Brasil Comércio de Eletrônicos Ltda.

Brazil

JVCKENWOOD Deutschland GmbHGermany

JVCKENWOOD Belgium N.V.

Belgium

JVCKENWOOD Europe B.V.

Netherlands

JVCKENWOOD RUS LLC

RussiaJVCKENWOOD Gulf Fze

U.A.E.

Asia and Oceania : Business Operation Companies

China: Business Operation Companies

Name

Location

Name

Location

JVCKENWOOD Singapore Pte. Ltd.

Singapore

JVCKENWOOD (China) Investment Co., Ltd.

China

JVCKENWOOD Malaysia Sdn. Bhd.

Malaysia

JVCKENWOOD Hong Kong Ltd.

China

JVCKENWOOD (Thailand) Co., Ltd.

ThailandPT. JVCKENWOOD Indonesia

Indonesia

JVCKENWOOD Australia Pty. Ltd.

Australia

Other Principal Affiliated Companies

38

Name

Location

Main Business

Zetron, Inc.

U.S.A.

Development, manufacture and sales of telecommunications equipment

EF Johnson Technologies, Inc.

U.S.A.

Development, manufacture and sales of telecommunications equipment

ASK Industries S.p.A.

Italy

Development, manufacture and sales of car electronics equipment

Radio Activity S.r.l.

Italy

Development, manufacture and sales of telecommunications equipment

JVCKENWOOD Technologies Singapore Pte. Ltd.

Singapore

Manufacture and sales of telecommunications equipment

JVCKENWOOD Hong Kong Holdings Ltd.

China

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

Network（Japan）

NETWORK (JAPAN)

As of April 1, 2018

Business Centers and R&D Bases
Name

Location

Main R&D Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Video cameras, AV accessories and home audio,etc.

Hachioji Business Center

Hachioji, Tokyo

Car electronics equipment

Hakusan Business Center

Yokohama, Kanagawa

Communications and video surveillance equipment, etc.

Kurihama Business Center

Yokosuka, Kanagawa

Projectors, D-ILA devices and laser diodes, etc.

Principal Manufacturing Sites and Manufacturing Companies
Name

Location

Main Products

Head Office & Yokohama Business Center

Yokohama, Kanagawa

Electronic components (for optical pickups)

Kurihama Business Center

Yokosuka, Kanagawa

Electronic components (D-ILA devices, Laser diodes) and projectors

Yokosuka Business Center

Yokosuka, Kanagawa

CD and DVD discs (prerecorded)

JVCKENWOOD Yamagata Corporation

Tsuruoka, Yamagata

Telecommunications equipment and professional products

JVCKENWOOD Nagano Corporation

Ina, Nagano

Car electronics equipment

JVCKENWOOD Nagaoka Corporation

Nagaoka, Niigata

Medical display monitor solutions and in-vehicle substrates

Name

Location

Main Business

JVCKENWOOD Victor Entertainment Corporation

Shibuya-ku, Tokyo

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

JVCKENWOOD Creative Media Corporation

Yokosuka, Kanagawa

Development, manufacturing and sales of recorded optical disks

JVCKENWOOD Public & Industrial Systems Corporation

Yokohama, Kanagawa

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

JVCKENWOOD Video Tech Corporation

Shibuya-ku, Tokyo

Production, editing and sales of video, and studio operations

JVCKENWOOD Service (Japan) Corporation

Yokosuka, Kanagawa

After-sales services of audio and imaging equipment

JVCKENWOOD Engineering Corporation

Yokohama, Kanagawa

Development and design of hardware and software

JVCKENWOOD Design Corporation

Setagaya-ku, Tokyo

Planning and production of industrial designs

JVCKENWOOD Partners Corporation

Hachioji, Tokyo

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

Other Principal Affiliated Companies

39

Management Teamback row
front row

Shojiro Asai
Yasuyuki Tanida

MANAGEMENT TEAM

Takayoshi Sakamoto
Kazuhiro Aigami

Junichi Hikita

Yasuyuki Abe

Shinjiro Iwata
Takao Tsuji

Satoshi Fujita

Shoichiro Eguchi

Nagaaki Ohyama

Masaki Imai

Masatoshi Miyamoto

Board Members
Yasuyuki Abe*1

Kazuhiro Aigami

Masatoshi Miyamoto

Director of the Board, Chairman of the Board

Representative Director of the Board

Director of the Board

Takao Tsuji

Masaki Imai

Junichi Hikita*1

Representative Director of the Board

Director of the Board

Director of the Board

Shoichiro Eguchi

Yasuyuki Tanida

Shinjiro Iwata*1

Representative Director of the Board

Director of the Board

Director of the Board*1: External Director specified in Item 15, Article 2 of the Corporate Law

Audit & Supervisory Board Members
Takayoshi Sakamoto

Satoshi Fujita

Shojiro Asai*2

Nagaaki Ohyama*2

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Audit & Supervisory Board Member

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

Executive Officers●Masatoshi Miyamoto●Takao Tsuji
President & Chief Executive Officer (CEO)●Shoichiro Eguchi
Executive Vice President,
Chief Operating Officer (COO) - Automotive sector,
COO EMEA (Europe, Middle East and Africa)●Kazuhiro Aigami
Executive Vice President,
COO - Public Service sector●Masaki Imai

●Yasuyuki Tanida

Executive Officer,
Assistant to CSO

Naokazu Kurihara

Masao Nomura

Managing Executive Officer,
COO Americas

Executive Officer,
General Executive of Automotive OEM Business Division,
General Manager of Option Business Unit

Shigeru Onda

Shinichi Takada

Managing Executive Officer,
General Manager of SCM Department *3

Executive Officer,
COO Asia Oceania

Managing Executive Officer,
General Executive of Automotive Consumer Business Division

Akira Suzuki

Managing Executive Officer,
COO - Media Service sector,
Chief Technology Officer (CTO),
General Manager, R & D Department

40

Managing Executive Officer,
Chief Financial Officer (CFO)

Takuya Arai

Senior Managing Executive Officer,
Chief Administration Officer (CAO),
Chief Strategy Officer (CSO)

Naokazu Kurihara

Kazuhiko Iizuka

Shigeru Onda

Executive Officer,
Assistant to COO Americas (Public Service sector)

Takuya Arai

Akira Suzuki● Concurrently serving as Director of the Board.
*3: Supply Chain Management

Kazuhiko Iizuka

Masao Nomura

Shinichi Takada

Corporate Profile / Stock Information

CORPORATE PROFILE

Corporate Profile
Company Name

JVCKENWOOD Corporation

Business Segments

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

Representative Directors

Takao Tsuji, President & Chief Executive Officer
Shoichiro Eguchi, Executive Vice President
Kazuhiro Aigami, Executive Vice President

Date of Incorporation

October 1, 2008

Capital¥10 billion

Number of Employees

18,051 (as of March 31, 2017)

Equity¥61,514 million (as of March 31, 2017)

Total Assets¥262,297 million (as of March 31, 2017)

Fiscal Year-End

March 31

Head Office

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

Stock Information
Ordinary General Meeting of Shareholders

In June each year

Record Date

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

Stock Exchange Listing

Listed on the first section of the Tokyo Stock Exchange.

Security Code6632

Trading Unit

100 shares

Total Number of Shares Issued 139,000,201 shares (including 51,849 treasury shares) (as of March 31, 2017)
Total Number of Shareholders

55,327 (as of March 31, 2017)

Shareholder Registry Administrator

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

Place for the Registration

Stock Transfer Agency Business Planning Dept.,
Sumitomo Mitsui Trust Bank Limited, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo■Shareholder Composition■Major Shareholders (Top 10)

As of March 31, 2017

As of March 31, 2017

Japanesecompanies
5.64％

Treasury stock
0.04％

Securities
companies
5.76%

Financial
institutions
19.78%
Foreigncompanies
25.05%

Individuals
and others
43.74%

Name

Number ofstocks held
(thousands)

Ratio ofshareholding(%)

Japan Trustee Services Bank, Ltd. (trust account)

4,516

3.25

DENSO CORPORATION

4,171

3.00

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

3,833

2.76

CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW

2,882

2.07

THE BANK OF NEW YORK MELLON 140044

2,768

1.99

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

2,694

1.94

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

2,420

1.74

THE BANK OF NEW YORK MELLON 140040

2,318

1.67

Japan Trustee Services Bank, Ltd. (trust account 1)

2,068

1.49

Japan Trustee Services Bank, Ltd. (trust account 2)

1,937

1.39

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

41