Integrated Report 2023

Contents

Our Philosophy

Editorial Policy for the Integrated Report 2023
With the formulation of our new medium-term management plan "VISION 2025," we have incorporated our corporate philosophy "Creating
Peace of Mind for People Around the World" into our Articles of Incorporation. Taking this opportunity, we have endeavored to enhance the report
to include as much information as possible on the sustainable enhancement of corporate value that we aim to achieve.
In this report, we focused on two points in particular. The first is Value Creation Story. With a strong focus on the Integrated Thinking, we drew an
ideal picture of what kind of value we can provide to the social issues surrounding us from a long-term perspective, and working backward fromthere, reviewed our management capital and business activities to redefine our material issues.
The second is the enhancement of medium- to long-term KPI and their initiatives. Through active discussions linked to management strategies at
the Sustainability Committee, which was established in April 2023 under the direct control of the CEO, we have organized chapters around material
issues to express how and when we will specifically address material issues and how our efforts to resolve material issues will lead to the enhancement of our corporate value. The chapters are organized around material issues, and KPI and specific initiatives are linked to each other.

We share our philosophy of providing "excitement and peace of mind for the people of theThrough dialogue with stakeholders using this integrated report as a tool, we will strive to further enhance corporate value.
Integrated Report 2023 Editors

Introduction

Based on this philosophy, each of us will share with all our stakeholders the richness of life

Foundation for Value Creation

Our Philosophy

1

Promoting Employee Engagement, Diversity & Inclusion 44

At a Glance

2

Risk Management

48

Compliance

50

Stakeholder Engagement

51

External Directors Roundtable Discussion

52

Message from Our CEO

6

Value Creation Story

Message from Corporate Auditors, Investor Comments 55

Medium-To Long-Term Vision10

Corporate Governance

56

Value Creation Process

12

Directors, Corporate Auditors & Executive Officers

60

Awards & Recognitions

61

Value Creation Strategy 1
New Medium-Term Management Plan "VISION 2025"

world" as the fundamental belief of JVCKENWOOD Group's corporate behavior.
and diverse values that lead to inspiration and peace of mind.

Corporate Philosophy
・Creating value
through Monozukuri

Data Section

New Medium-Term Management Plan "VISION 2025"

14

Financial and Non-Financial Highlights

62

・Building a corporate culture

Message from Our CFO/Financial Strategy

18

Corporate History

64

that adapts and embraces change

Domestic and International Network

66

Financial (IFRS)/Non-Financial Data

68

Company & Stock Information

69

Value Creation Strategy 2
Business Strategy
Mobility & Telematics Services Sector

20

Safety & Security Sector

24Entertainment Solutions Sector

28

Value Creation Strategy 3
Sustainability Strategy
Our Sustainability Strategy

30

Material Issue 1: Safety & Security Initiatives

32

Material Issue 2: Environmental Response

34

Material Issue 3: Sustainable Monozukuri*

38

4 Values

・Investing in people to strengthen

ChangeCreateEarning
Power

Connect

capabilities and push boundaries

The expressions contained in this presentation referring to the Company's future plans, intentions
and expectations are categorized as future forecast statements. Such statements reflect
management expectations of future events, and accordingly, are inherently susceptible to risk,
uncertainty and other factors, whether known or unknown, and may be significantly different fromfuture performance. These statements represent management's targets as of the time of issuanceof these presentation materials, and the Company is under no obligation, and expressly disclaims
any such obligation, to update, alter or publicize its future forecast statements in the event there arechanges in the economic climate and market conditions affecting the performance of the Company.
Risk factors and other uncertainty which may affect the Company’s actual performance include:(1) violent fluctuations in economic circumstances and supply and demand systems in major
markets (Japan, the U.S, the EU and Asia); (2) restrictions including trade regulations applicable tomajor markets including Japan and other foreign countries; (3) sharp fluctuations in the exchange
rate of the U.S. dollar, euro, and such like against the yen; (4) market price fluctuations in capital
markets; and (5) changes in social infrastructure due to short-term changes in technology and such
like. Please note, however, that the above is not a comprehensive list of all the factors that may exert
a significant influence on the Company's performance.

*Manufacturing
JVCKENWOOD Integrated Report 2023

1

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

At a Glance

JVCKENWOOD aims to contribute to the resolution ofvarious social issues by "Creating excitement and peace ofmind for the people of the world" through audio, visualand communication.

Realize safe and secure communities

Create excitement for people’s lives

Professional radio systems have been adopted by many
police stations, fire stations and emergency medical
services (EMS) to facilitate smooth communication invarious situations and contribute to disaster prevention
and mitigation. Security camera systems contribute to the
suppression of crime and the creation of safe residential
environments by monitoring people and communities
at all times. The Company aims to create “safe andsecure” communities based on “sound,” “visual” and“communication” technologies.

Together with many artists, the Group has beencreating high-quality music and visual contents, andplaces of “excitement” including live events where
people can experience them directly. In addition, by
providing high sound quality audio equipment that
explores the original sound and visual equipment thatenables users to experience the ultimate visual beauty,
we deliver "excitement" created by the power of music
and visual to people’s lives.

Create excitement for people’s lives
through the power of entertainment
Stably and continuously provide
highly reliable communication systems

Contribute to disasterprevention and mitigation

Create excitement and peace of mind for mobility life
In the mobility society, where EVs and autonomous
driving are becoming increasingly common, the vehicle
interior space will be transformed into a more diverse
scene. In people's mobility lives, the Company aims to
make the vehicle interior space a more “thrilling” and"exciting" entertainment space through our “audio”
and “visual” solutions, and contribute to "safe andsecure" driving with the car navigation systems anddashcams.

Prevent traffic accidents andensure safe and securetransportation systems

Suppress crime and create
safe and secure communities

Provide a safe, secure andexciting mobility life

2

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

3

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

At a Glance
We provide products, services and■ Revenue (FYE3/'23)

Others■ Core operating income*1（FYE3/'23）

2%

ES

solutions that realize our corporate

ES 17%

philosophy "Creating peace of mind

M&T

28%

for the people of the world" in threebusiness sectors.
■ Mobility & Telematics Services Sector (M&T)■ Safety & Security Sector (S&S)■ Entertainment Solutions Sector (ES)■ Others

Our three distinctive brands

5%

S&S

22%

The red triangle brand logo represents it's desire for high quality,
advanced, and sharpness, and the products are focused on audio
and communication technology, expanding the development ofprofessional radio systems and in-vehicle products and services.

15.8

336.9

billion yen

M&Tbillion yen

59%
S&S 67%

Mobility & Telematics Services Sector

The brand offers audio/visuals products
and in-vehicle products mainly in overseas,
always proposing solutions that are close
to people's lives.

Main products and services
Develops products, services, and solutions that contribute to acomfortable, safe, and secure vehicle interior through the OEM
Business, Aftermarket Business, and Telematics Service Business.

■■

The brand is known for its "His Master's Voice" andits dog, Nipper, pursuing technologies and productsthat are appropriate for the times, without beingbound by preconceived ideas. (Used only in Japan)

OEM Business

OEM & Aftermarket Businesses
In-vehicle amplifier/antenna/speaker
Dashcam■

OEM BusinessFor car dealers, automakers, and components manufacturers■

Aftermarket Business■

Telematics Service Business

For mass merchandisers, retailers and distributors
For Auto insurance companies, ride-sharing service companies,
taxi companies, and transportation companies

Safety & Security Sector■

Car navigation
systemPortable power
station using
recycled batteries
from electricvehicles■Communications Systems Business

Security
systemLicense-free transceiver
Medicalimage
display
monitor

Professional Systems Business
Provides security systems, professional broadcasting systems, and audio solutions
for the domestic market, and high-precision medical image display monitors for
hospitals and clinics in the healthcare business.

Entertainment Solutions Sector

■

■

■

Professional
broadcasting system■

Entertainment BusinessMedia BusinessMedia Business
Develops audio and visual equipment such as headphones, earphones,
professional cameras, and projectors, as well as solution business withthese products at the core. Also provides portable power stations for
emergencies and outdoor activities.

Projectors
Portable power station

Entertainment BusinessDistributes music and video content of popular artists, CD/DVD/
Blu-ray package sales, live concerts, and non-music related
merchandise sales, mainly in Japan.

*1: Calculated by deducting cost of sales, selling and general administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange gains
and losses, which are nonrecurring items that mainly occur temporarily.

JVCKENWOOD Integrated Report 2023

Amateur radio

Professional radio system

Main products and services
Develops products, solutions, and content that enrich people's
minds and lives through music and visuals through the MediaBusiness and Entertainment Business.

4■Professional
Systems BusinessCommunications
Systems Business■

Provides highly reliable professional digital radio systems for the public
safety market (police, fire, EMS, etc.) and the private market. Also offers
products for individuals such as amateur radio equipment and license-freetransceivers.
■

Dustproof
and waterproof
connected-type
dashcamConnected-type
dashcam

Alcohol detector

Main products and services
Develops products and solutions to protect people's lives and livelihoods and tocontribute to the creation of safe and secure communities through theCommunications Systems Business and Professional Systems Business.

Telematics Service Business

Display audio system

Headphones/earphones

Audio system

PTZ*2 Remote Camera

Music & video
content*2: Abbreviations for Pan (P), Tilt (T), and Zoom (Z) Operations.

JVCKENWOOD Integrated Report 2023

5

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Message from Our CEO
Achievement of major management targets of “VISION 2023” ahead of schedule

Shoichiro Eguchi

Toward the Next Stage for Further Change for Growth

Fifteen years are about to pass since the management
integration for survival between Kenwood and JVC in
2008. The global financial crisis that began just before themanagement integration in 2008, as well as the subsequentsluggish consumer electronics market, rapid digitalization,
intensifying price competition due to the rise of Chineseand Asian manufacturers into the market, and the advent ofsmartphones, severely damaged our company’s consumer
product business. In response to these changes in the businessenvironment, we carried out consolidation of redundant
production factories and sales offices, such as withdrawal fromor downsizing of unprofitable businesses, including televisions
and video cameras, which used to be our main businesses at
the time of the integration. In this process, we have worked
to improve the soundness of our balance sheet by disposingof negative legacies, while our business portfolio has shifted
significantly from the consumer electronics business to theprofessional product business. These 15 years were like theblink of an eye in the eternal history of mankind, but for
the new JVCKENWOOD, it can be said that our company
experienced a series of hardships and truly dramatic changes.

6

JVCKENWOOD Integrated Report 2023

FY2022 results

320 billion yen or more

336.9 billion yen

Core operating income

12 billion yen or more

15.8 billion yen

ROE

10% or more

18.2%

Equity ratio

30% or more

33.0%

D/E ratio

1.0 or less

0.63

Although the future of the market remains uncertain
due to further rises in energy costs caused by increased
geopolitical risks, fluctuations in foreign exchange rates,
and interest rate hikes, we are determined to appropriately
manage the risks and opportunities we face and to startwith renewed determination for the next stage of growth,without settling for the current level of performance. We
will ask ourselves the following three questions as we strive
for further Change for Growth.
・Are we a sustainable company for value creation?
・Do we have real earning power?
・Have we identified any business areas where we
can win over the medium to long term?

Representative Director of the Board,
President Chief Executive Officer (CEO)Highest profit after the management
integration achieved in FY2022

FY2023 targets
Revenue“Creating excitement and peace of mind
for the people of the world”: Include thephilosophy in the Articles of Incorporation

Business reforms after integration

FY2008FY2022

Professional product business(B to B) composition (%)

25%

72%

Number of Group bases

139

74

Number of employees - consolidated

23,08916,277In FY2022 (the fiscal year ended March 2023), we achieved thehighest profit since the management integration and met our
major management targets of the medium-term management
plan “VISION 2023” one year ahead of schedule. I believe this isdue, first of all, to the strengthening of the management base thathas been built up by controlling cash outflows and fundamentally
reviewing capital investment, fixed costs, and variable costs as a
response to the critical situation that has arisen since COVID-19.
In addition, although the business environment continued tobe difficult, including the invasion of Ukraine, the Shanghai
lockdowns, and high infrastructure costs and raw material prices,
we successfully normalized the supply chains and recovered
production and sales through rapid response to the component
supply issue, and design change and utilization of alternative
components, resulting in improved earnings. On the businessside, the Communications Systems Business performed very well,especially in the North American market, which greatly boosted
the Company’s performance.

In conjunction with the formulation of the new mediumterm management plan “VISON 2025,” we decided
to include the corporate philosophy in the Articles ofIncorporation, which is the constitution of the Company,
by a special resolution at the Ordinary General Meeting of
Shareholders held on June 23, 2023. In order to vigorously
survive in an uncertain and rapidly changing market
environment, we must position our corporate philosophy
firmly at the core of management and continue to evolveand grow tirelessly based on it. Today, companies are
required, more than ever, to take a long-term perspective
and pursue social value. I believe that this corporate
philosophy will surely be effective for activities that capture
global megatrends, think through how JVCKENWOOD cancontribute to society, and lead to the creation of corporate
value for the entire Group.
Of course, it is not enough to just include the corporate
philosophy in the Articles of Incorporation. It is also
important for management to continue to speak withenthusiasm to employees and other stakeholders, andto create a mechanism that generates empathy by
disseminating information widely. In addition, I believethat it is most important for each employee to be aware of
the relationship between the philosophy and themselvesin their daily work, so that this philosophy can spreadthroughout the entire Group and lead to improvementof corporate value in some way. In other words, the mostimportant thing is “activities to internalize the philosophy.”In this sense, we will make FY2023 the “First Year of
our Purpose," in which we will give life to the corporate
philosophy that is the source of growth of the Company.

Thoughts on the new medium-term
management plan “VISION 2025”
The requirement of the new medium-term management
plan “VISION 2025,” which is the next step toward
the long-term vision, is to move away from the inward
perspective. A point of reflection in the conventional
process of formulating mid-term management plans is thatthe main focus has tended to be on accumulating whatcame out from each business sector. With the idea of thePtolemaic theory in which the business we are in chargeof is the center of the world, we will not survive in a fastflowing and severely competitive environment. I believethat it is essential to have an “objective point of view,” orto strictly apply our business structure and portfolios to theperspective of the future and reconsider the business weare in charge of while denying ourselves, in a sense.
So, in formulating the new vision, we adopted an external
point of view (that of investors) for increasing the true
corporate value, and to embody it in our strategy. In
particular, “management with awareness of capital costs
and share prices” is a major theme for companies listedon the Prime Market of the Tokyo Stock Exchange, andwe formulated “VISION 2025” such that it takes suchdemands of the capital market seriously and expresses theconcept and direction of our company’s strategy clearly.
As drivers for improvement of corporate value, we havepositioned the following three points as our major strategicpillars: the “optimization of business portfolio” taking into
account “growth potential” and “capital efficiency” in thebusiness strategy; the “optimization of capital allocation”
including aggressive shareholder returns in the financial
strategy; and “profitable growth" and “solving social issues
on a global scale” in tandem in the sustainability strategy.
• Business strategy — Optimization of business portfolio• Financial strategy — Optimization of capital allocation• S ustainability strategy — Profitable growth and solving social issues on a global scale

In the business strategy, we aim to achieve a price book-value ratio (P/B
ratio) above 1.0 as soon as possible by projecting the concept of maximizing
corporate value onto our business portfolio and optimizing our businessportfolio based on the indicators of “growth potential” and “capitalefficiency.” Based on accurate understanding of the Company’s capital
cost*, we allocated businesses to a four-quadrant business matrix along theaxes of the growth potential of business and capital efficiency, according to*Capital cost (WACC): 6.29% (based on figures as of March 31, 2023)

JVCKENWOOD Integrated Report 2023

7

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Message from Our CEO
the minimum criterion that ROIC (returnon invested capital) does not fall below
capital costs as defined in the businessportfolio. In addition, we have revised
the direction of our strategy to takeadvantage of our company’s strengths
in response to changes in our businessenvironment, and positioned theCommunications Systems Business as a“profit-generating driver” that will leadthe entire Company. This way, we are
putting different importance on different businesses.
High

Business growth potential(sales growth rate)

New business

Growth driving businessRestructuring business

Revenue base business
High

Low

(Hurdle rate)

Capital efficiency of the Company

As for shareholder returns, we basically aim for stabledividends and continuous dividend increases. What is still
very important, however, is the amount of resources toallocate to growth investments. We plan to increase thetotal payout ratio by flexibly acquiring treasury shares
while keeping the balance between maintaining financial
soundness and investing in growth businesses.
The indicator of capital efficiency, which is an importantfactor for improving corporate value, measures how much
return was generated on invested capital. We set ROIC asa target since, while ROE (return on equity) is of course
important, we believe that showing the ratio of “operating
profit from the core business," which is the profit obtainedby utilizing the entire financing cost including interestbearing debt, will allow us to more accurately aligninvestors’ eyes from the perspective of our company’sbusiness characteristics.
In order to continuously improve P/B ratio in the future, it
is important to continuously and thoroughly redefine ourbusiness portfolio from the perspective of profit growth,
improvement of capital efficiency, and optimization ofcapital costs, which are the components of P/B ratio. The
company's management issues and areas for improvement
will become clearer, and it will be possible to takeappropriate measures to address essential management
issues through agile and strategic initiatives in response tomarket changes, rather than one-time efforts.

Creating new value with backcast thinking starting with the future we want to achieve
In order for our company to grow sustainably toward
2030, we must constantly challenge ourselves to create
value. Our company is promoting business activities

8

JVCKENWOOD Integrated Report 2023

centered around audio, visual, and communications, which
are our strengths, and incorporating the managementof “design thinking.” We were aware of “integrated
thinking” in constructing this story of value creation.
“Integrated thinking” and “design thinking” share amajor point in common. That is, both adopting the idea ofbackcasting from the future and implementing forwardlooking strategies to create a cycle of value creation. Basedon this concept, we have taken into consideration therelationships with our various stakeholders from a longterm perspective and how we can provide value to thesocial issues surrounding our planet, in order to reexamine
our own management capital and business activities froma holistic viewpoint.
By forecasting changes in the world 3, 5, and 10 years
from now, and taking the future as a starting point, we
will always sort out what we should do, what we lack,and what we should discard, and clarify the future plan toaim for. In so doing, we will draw a cycle of value creation
through our business activities.

technology is of course necessary, it is only customers
who evaluate it, and it is also important to have theperspective of business profitability, i.e., whether theinvested development funds can be recovered. No matter
how much performance is improved, users will not accept
products unless they keep a balance between affordability
and improved functionality. We need to go back to thestarting point that it is not engineers but customers who
evaluate technology.
What is the value only our company can create? What isthe basis of our advantage in creating that value? And willthat advantage continue? Is that advantage competitive
enough to withstand change? We must always keep ourantennae up and look for the best solutions, identifying
the real needs and trends in the world.

Image of new building at Value Creation Square (Head Office & Yokohama
Business Center Area) (scheduled for completion in late summer 2024)

Final remarks“Design management” with customers as
the starting point“Design management” is characterized by managementwith customers as the starting point incorporating
approaches unique to design. This means we are moresensitive than ever to the sensibilities and preferencesof humans and use them in our business. Sensibilities
and preferences include touch, sound, and usability. We
incorporate them starting from the upstream process of
product development.
Generally, new products and services stem from seeds(technology as the starting point) or needs (customer
demand). If you do not find out what your customers reallydesire, you cannot create a new technological way out.
Japanese companies have a strong commitment tohigh quality, high definition, miniaturization, and highspeed, and focus on product-out based on the conceptof technology as the starting point. For example, we canvisually tell the difference between 4K, 8K and other visualtechnologies in TVs and projectors. While the appeal of
The design division participates starting from the most upstream to enhance customer
experience value in business strategy, and product and service development.
R&D

Planning &DesignProcurement &Manufacturing

Sales

Customer
Service

Customer-oriented design management
Design-specific approaches（Human sensitivity and taste）

will also promote further workstyle reform by developing
an office environment that enables hybrid work.
We intend to take this opportunity to create a place for"Co-Creation" that will foster ideas that anticipate thefuture, root innovation thinking, and differentiate ourselvesfrom the competition.

Be the base of value creation — Establishmentof the Value Creation Square
As part of our efforts to embody medium- to longterm value creation, we will establish a base for value
creation, the Value Creation Square. This new base, whichis scheduled to be completed in the summer of 2024,
will strengthen technology development according to
global megatrends by linking the technological divisions,which have been divided into sectors and bases, withthe administrative division of the head office, the Future
Creation Research Laboratory, and design divisions. We

There is a quote by Geroge Herbert: "Storms make oaks
take deeper root.” I am convinced that a company that has
withstood the wind and snow and put down firm roots
will have a strong management foundation. The entire
Group has united together to face and overcome the manycrises that followed the management integration andthe unprecedented difficulties caused by COVID-19. We
have also learned firsthand that the results of our efforts
are commensurate with our sweat and toil. I feel that weare fostering a corporate culture that is truly tough andtenacious.
Our goal for the time being in “VISION 2025” is to put
the Company on a strong track, but this is only a passing
point. We will always be conscious of drawing up what
the Group should be and the creation of value from along-term perspective. I believe that my greatest mission
is to evolve the Group into a powerful corporate group inwhich each and every employee strives forward with great
aspirations and dreams, based on the noble corporate
philosophy, “Creating excitement and peace of mind forthe people of the world.”
To create value over the medium to long term and realize
our vision, we will continue to engage in dialogue withinvestors and other stakeholders as we transform ourselves
into an even more attractive JVCKENWOOD.

Representative Director of the Board,
President Chief Executive Officer (CEO)JVCKENWOOD Integrated Report 2023

9

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Story: Medium-To Long-Term Vision
Our history of value creation from business integration to the present and the future we aim for
By overcoming a series of hardships that occurred after the business integration, we have built a strong
management foundation.
Since 2018, we have been improving our business performance by anticipating the future and establishing a
profitable revenue base.
By backcasting from the future envisioned through design thinking, we have established three materialities.
Now, with the corporate philosophy of "providing excitement and peace of mind for the people of the world,"
we aim to maximize our corporate value and make a leap forward to become an excellent company that has bothstrength and toughness to anticipate change and pioneer the future by resolving the three material topics.

Three material issues
1 Safety & Security Initiatives

2 Environmental Response

3 Sustainable Monozukuri● 2021: Establishment of Future

nmental Respo
nviro
nse
2. E

*2

● 2014 Converted EFJT

Accelerating growth momentum for● 2015 Converted ASK*3● 2018 Investment in and collaboration with Tait

*4

Establishment ofrevenue base● 2008 Management integration

Seeking revival
Era ofdynamic changes

2019 -- 2022
2013 -- 2018
● Consumer electronics recession

2008 -- 2012

● Rise of smartphones● Lehman Brothers collapse

Excellent company with bothstrength and toughness

nable Monozuk
ustai
uri
3. S

● 2013 Converted Shinwa *1& Security Initia
fety
tiv
a
S
es
1.

Creation Research Laboratory● 2022: Return to domestic production

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

material issue
s:
ree
h
T

VISION 2025

Initiatives to strengthen
management base

● Impact of COVID-19● Semiconductor shortage

2023 -- 2025

● Risk of US-China conflict● Rising geopolitical risks● Entering VUCA*5 era● Uncertain global

economic trends● Global blocking

st
ca
ck
Ba

Utilizing the strengths of JVCKENWOOD
in visuals, audio, and communications
through design thinking

The future envisioned by Design Thinking● Imaginary worlds that are not based on facts● Possible futures*1: JVCKENWOOD Hong Kong Holdings Limited (formerly Shinwa International Holdings Limited)*2: EF Johnson Technologies, Inc.
*3: ASK Industries S.p.A.
*4: Tait International Ltd.

10

JVCKENWOOD Integrated Report 2023

*5: Abbreviation of volatility, Uncertainty, complexity, ambiguity

Design art tacit knowledge, subjective sensory value, etc.

Design problem solving and experiential value: Exploring various possibilities bymultiplying facts and events (signs of change) and using imagination● Future as an extension of the present

Predicting where facts and events have evolved and progressed

JVCKENWOOD Integrated Report 2023

11

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Story: Value Creation Process

Predict the future from short-, medium-, and long-term perspectives, sort out
what should be done, what is missing, what should be discarded, and draw a future map.

Based on integrated thinking, JVCKENWOOD will improve sustainability by appropriately allocating equity andcirculating within the Group the decision-making and behavior that are conscious of medium- to long-term value creation.

Input
Management capital

OutputBusiness performance

Business activity● Growth investment: Approx. 65 billion yen*
● Total assets: 299.4 billion yen*Aggregation from FY2023 to FY2025

Manufacturing capital● Number of major manufacturing companies: 9● Capital expenditure: 11.4 billion yen*Tangible fixed assets only

Maximizing corporate value
Business strategy

Financial strategy

Sustainability strategy

M&T Sector

S&S Sector

ES Sector

Mobility & Telematics
Services Sector

Safety & Security
SectorEntertainment
Solutions Sector

Intellectual capitalevelopment and
De
h, D
c
r
sig
a
Resea
se
n)
vice
r
e
r
e
c
h
S
R
&
De
er
v
m

ent
pm
elo

s

Audio
Proc

Social and relational capitalure m ent & M anufac

Stably 10% or more

ROIC

9% or more

10% or more

370 billion yen or more

400 billion yen or more

5% or more

5 to 7%

RevenueCore operating income ratio
Cash flows from operating activities

Approx. 90 billion yen*
*Aggregation from FY2023 to FY2025

peace of mind.

Leap to an excellent company with

Material issues (non-financial)
Safety & Security Initiatives ⇒ P.32

sig n

Designmanagement

S ale(consolidated): 16,277● Total annual actual working hours:
1,890 hours/person

10% or more

(1) Reduction and prevention of traffic accidents& De

Visual Communication● Number of Group employeesROEof life and diverse values that lead to inspiration and(2) Creating safe and secure communities

Realize safety and security in social life
through the evolution of advanced safety technologies

in g

Human capital

FY2030 targets

nnApprox. 6,500

R&
D2
(
Cu
st
o

● Number of patents held:

FY2025 targets

Each of us will share with all our stakeholders the richness

both “strength” and "toughness"Pla● R&D expenses: 17.4 billion yen

Mid-term financial indicators

Sustained creation of
economic and social value● Strategic investment: Approx. 35 billion yen

Appropriate and efficient
allocation of resources*"Creating excitement and peace of mind for the people of the world"

Recognize risks and opportunities andmake appropriate decisions (sound management)

Corporate philosophy

Financial capital

OutcomeCreation of social valuet u rin g

Environmental Response ⇒ P.34

Reduce CO2 emissions and contribute to carbon neutrality(1) Responses to climate change● Number of major sales &(2) Reduction of environmental loads

marketing bases: 18● Three brands:

KENWOOD, JVC, Victor

Natural capital

Profitable growth

Solving social issues

Strengthening ESG● Total energy consumption:

561,589 GJ

12JVCKENWOOD Integrated Report 2023

Promote effective use of

Create unique and diverse

resources by the Company

value to provide richness and(1) Responsible supply chain ⇒ P.38

and suppliers

excitement to people(2) Monozukuri reform ⇒ P.40

● Water intake: 177,000 tons

Reestablish invested
capital to strengthen
management capital

Sustainable Monozukuri(3) Accelerating innovation ⇒ P.42

Social trends● Business model innovation through new technologies● Uncertain global economic trends● Increased geopolitical risks and tension● Accelerated digitalization ● Supply chain confusion● Climate change, natural disasters and carbon neutrality

Imp
leme
nt forward-looking

strategies with

ti o
a
e
r
lue c
a
v
f
cycle o
a
e
t
a
e
r
c
backcasting andnSort out positive (+) andnegative (-) outcomes andreconsider invested capital

JVCKENWOOD Integrated Report 2023

13

Introduction

Value Creation Strategy 1

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for ValueBusiness Strategy
Sustainability Strategy
New Medium-Term Management
Creation
Plan "VISION 2025"

Data Section

New Medium-Term Management Plan "VISION 2025"
Basic strategies

Redefinition and optimization of the business portfolio

portfolio and capital allocation and promote sustainability2025” we will further strengthen the management basemanagement. Through the promotion of "VISION 2025,"

to maximize corporate value with “Change for Growth” as

we will establish a structure that ensures a stable ROE ofthe basic strategy. Specifically, we will optimize our business

10% and early realization of a P/B ratio above1.0.

Maximizing corporate value
Further evolve "Change for Growth" to enhance sustainable corporate and shareholder value
Target ROE of 10% and aim to achieve P/B ratio above 1.0 as soon as possible

Change for GrowthBusiness strategy
Optimize the business portfolio
Financial strategy

Sustainable Strategy

Optimize capital
allocation

Promote sustainable
management

IP Strategy

Manufacturing

GovernanceCorporate
CultureStrengthening
SCM**: Supply Chain
Management

Priority medium-term measures

Business portfolio analysis

High

Present

Low

Hurdle rate
Low

“increased capital efficiency,” “shareholder return” and “capital cost

aim to improve the quality of profits by increasing the ratio of sales of

optimization.” For each component, we set a target for FY2025 andsolutions and maintenance services in the Communications Systems

established priority medium-term measures to achieve those targets.

Business.

For “profit growth,” with a target of an EBITDA margin of 10%

For “shareholder return,” we will target a total payout ratio of 30

professional systems businesses, which currently suffersfrom low profitability, we will drastically revise ourstrategies to improve profitability, keeping withdrawal
from the business and reduction in the size of the businessin mind.

or more, we will achieve sales growth and better profitability

to 40% by promoting stable dividend policy and agile acquisition ofsimultaneously, mainly in the Communications Systems Business,treasury shares. For “capital cost optimization,” with a target of a D/

which is positioned as a growth driving business.

E ratio of 0.6 times or less, we will promote reducing WACC throughFor “increased capital efficiency,” with a target of an ROIC of 9%

optimal equity components.

P/B ratio above 1.0

ROIC of 9% or more

Increased capitalefficiency
Shareholder return
Capital cost optimization
Total payout ratio of 30-40% as a
guide D/E ratio of 0.6 or less

JVCKENWOOD Integrated Report 2023

● ROIC-focused business portfolio transformation● Increase in the ratio of solutions and maintenance services

in the Communications Systems Business● Stable dividend policy● Flexible acquisition of treasury shares● Reduction of WACC with optimal capital structure“Growth driving business”: In the Communications Systems
Business, we will further strengthen our business in North
America, which is a growing market. In the Overseas OEM
business, we will strengthen the sale of products that meetmarket changes mainly caused by the shift of automobiles
to EVs, such as in-vehicle speakers, amplifiers, antennas
and cables.
“Revenue based business”: In the OEM business (dealerinstalled products) and the aftermarket business, we
expect markets to shrink in the future, but will takeadvantage of positions we have established so far in thosemarkets as a strength to capture the benefit of survivors
with the minimum necessary development investment.
The entertainment business supports the Group as a stablebusiness.

High

Business growth potential(Sales growth rate)

Maximization of
corporate value

EBITDA margin of 10% or more

● SCM reform, monozukuri reform

High

Capital Efficiency of the Company

take on the challenge of expanding markets worldwide,such as games, animation and metaverse. In the telematics
service business, we will expand not only into the mobility
sector but also into ships, construction equipment, andother areas, centering on the connected-type dashcam.

“Restructuring business”: In the professional camera and● Enhanced profitability (Cost improvement and pricing review)

Improvement of profitability through qualitative change of business
Consideration of resource shift through downsizing and withdrawal

Restructuring businesspotential and capital efficiency with an emphasis on capital costs, and● Sales growth (Expansion of growth driving businesses)

Further improvement of capital efficiency
Verify continuity of profit generation

Revenue base businessa P/B ratio of more than 1.0 times, we set forth “profit growth,”

Profit growth

Mid-to-long term

Further Expansion of Business Scale
Promotion of measures to strengthen business

Growth driving businessor more, we will transform our business portfolio through growth

Priority medium-term measures

Launching Next-Generation Businesses
Cultivating Pillars of Profitability

New business

As the components for maximizing corporate value and achieving

Components of enhancing corporate value

14●“New business”: In the new entertainment business, we will

Further strengthen the management baseTechnology
Strategy"VISION 2025" redefined our business portfolio for“Change for Growth.” In redefining the portfolio,
we took into account the net sales growth rateover 3 years from FY2023 to FY2025 (the mediumterm growth potential of our business) and our own
capital efficiency from the perspective of maximizing
corporate value.
In order to analyze how the net sales growthrate, capital efficiency, and earning power of ourbusinesses will change from the current position overthe medium to long term, and to build a businessportfolio that can demonstrate strengths over the
medium to long term, we categorized businesses
into “growth driving business,” "revenue basebusinesses," "new business" and “restructuringbusiness.”

Business growth potential (sales growth rate)

In the new medium-term management plan “VISION

New businessRestructuringbusiness● New entertainment business● Telematics service business● Professional camera business● Professional systems business

Growth driving
business

Revenue basebusiness● Communications systems business● Overseas OEM business● OEM business (Dealer-installed products)● Aftermarket business● Entertainment business

Low
Low

Capital efficiency of the Company

High

Hurdle rate

JVCKENWOOD Integrated Report 2023

15

Introduction

Value Creation Strategy 1

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for ValueBusiness Strategy
Sustainability Strategy
New Medium-Term Management
Creation
Plan "VISION 2025"

Data Section

New Medium-Term Management Plan "VISION 2025"
Direction for strategy enhancement

Quantitative target

In "VISION 2025," we revised the direction for strategy enhancement frommarket and the reduction of aftermarket.

In "VISION 2025," we target a revenue of 370 billion yen or more,or more, as well as an operating cash flow of 90 billion yen or

the previous medium-term management plan “VISION 2023,” from theIn the Safety & Security Sector, we will position the Communications Systems

a core operating income margin of 5% or more, and an ROE ofmore in total for 3 years during the applicable period. In addition,

perspective of changes in the business environment surrounding the Company

Business as a growth driver and aim to maximize profits, particularly in the

10% or more for FY2025, the final year. With an emphasis on the

we have set a new target of an ROIC of 9% or more, aiming toand maximization of corporate value. And we changed the name of sectors inNorth American market.

generation of cash flow, we also target an EBITDA margin of 10%

improve capital efficiency with an emphasis on capital costs.

order to more clearly express the business strategies the Company aims at.

In the Entertainment Solutions Sector, we will promote the qualitative

In the Mobility & Telematics Services Sector, we will direct the direction fortransformation of our traditional media business, strengthen our gamestrategy enhancement to the expansion of our overseas OEM business in lightand animation businesses, which are expanding globally, and aim to createof changes in the business environment, such as the expansion of the EV

synergies with our existing businesses.

Changes in the business environment
Mobility & Telematics
Services● Expansion and increase of shift to EV■B usiness expansion centered on● Reduction of aftermarket

in-vehicle speakers, amplifiers,
antennas, cables and lenses in
response to market changes● Expansion of telematics

data service business

Safety & Security● Globally expansion of the professional

radio market due to BCP* measures● Limited competitors andlow threat of new entry
Entertainment
Solutions

Direction for strategy enhancement● Globally expansion of game,

animation, metaverse andother entertainment markets

Expansion ofoverseas OEM■ Maximization of profits with theProfit-generating
driverCommunications Systems Business as a
growth driver, mainly in North America

FY2022 (Result)

FY2023 (Announced on April 27, 2023)

FY2025 (Target)

Revenue

336.9 billion yen

350 billion yen

370 billion yen or moreCore operating income
margin4.7%

4.2%

5.0% or more

EBITDA margin

12.5%

10.3%

10% or more

Operating cash flow

26.6 billion yen

32.5 billion yen

Cumulative total of three years from 2023 to 2025

ROE

18.2%

8.0%

10% or more

ROIC

8.3%

7.6%

9% or more

Qualitativetransformation ofbusiness■ Strengthening of game and animation businesses■ Promote qualitative transformationof existing Media BusinessMedium- to long-term business growth image toward FY2030
As the image of medium- to long-term business growth,
we will establish a structure that stably ensures an ROE of
10% by FY2030, and aim to achieve a P/B ratio of morethan 1.0 times.

*Business Continuity Plan

Change in profit-generating drivers due to business portfolio review

336.9billion yen

In the Communications Systems Business, which is the main businessin the Safety & Security Sector, we expect the continuous generationof stable profits, because of the limited number of global competitors,

generating 65% of the Company’s total core operating income.

■ Composition of core operating income

2.5 billion yen

FY2021 35%

7.1

billion yen

16

JVCKENWOOD Integrated Report 2023

FY202518.5 billion yen

Safety &Security Sector

or moreVISION 2025 Target

370billion yen or moreCore operating income margin

5 to 7%

Core operating income margin

high barriers to entry, and our highly competitive advantage. In FY2025,
this business will lead the entire Company as a profit-generating driver,

400billion yen or more

291.3billion yen

The Communications Systems Business will generate 65% of thecore operating income of the entire Company

90 billion yen or moreCore operating income margin

Safety &Security Sector

Core operating income margin

12 billion yen

ROE

2.0%

4.7%
ROE

18.2%

5% or more
ROE

10% or more

8.3%

9% or moreROIC

FY2019results

FY2022
results

FY2025targets

3.1%

10% or more

StablyROIC

10% or more

ROIC

ROIC

1.6%

ROE

65%
FY2030targets

JVCKENWOOD Integrated Report 2023

17

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for ValueBusiness Strategy
Sustainability Strategy
New Medium-Term Management
Creation
Plan "VISION 2025"

Value Creation Strategy 1

Data Section

Message from Our CFO: Financial Strategy
Aim to achieve a P/B ratio above 1.0 by improving
capital efficiency and enhancing shareholder returnassets, in addition to about 90 billion yen in operating cash flow. On the

returns, and 5 billion to 10 billion yen as loan repayments. We intend,

other hand, with respect to outflows of cash, we plan to use about 65

however, to make flexible investments within the framework of strategic

billion yen as growth investments to expand and maintain our existing

investments, such as prioritizing investments in new businesses whenbusinesses, and about 35 billion yen as strategic investments.

investments are needed for growth such as M&As, and appropriating funds

Strategic investments are expected to include 15 billion to 20 billion yen as

for shareholder returns and repayment of interest-bearing debts wheninvestments in new businesses, 10 billion to 13 billion yen as shareholder

there are no specific growth investment projects.

■ Capital Allocation Concept
Representative Director of the Board,
Senior Managing Executive Officer and Chief Financial Officer (CFO)

Maximize corporate value through capital
allocation that balances the improvement of
capital efficiency and growth investmentswith an emphasis on capital costs

Basic
policyMasatoshi Miyamoto

Numerical
targets for
FY2025

Toward P/B ratio above 1.0
The new medium-term management plan “VISION 2025” has a basic

setting a simplified ROIC target for each business sector, however, we will

strategy of achieving a P/B ratio above 1.0 by improving capital efficiency andpromote business operation with awareness of capital costs also for eachenhancing shareholder returns.

business sector, in order to achieve an ROIC of 9% or more in FY2025.

Under the previous medium-term management plan “VISION 2023,” weaimed to achieve revenue of 320 billion yen or more, core operating income

As the Company operates globally, its revenue and profits are affected byattributable to owners of the parent company to total assets of 30% or moreexchange rate fluctuations. At present, a depreciation by one yen against

by FY2023, the final year of the plan, by steadily implementing the business

the U.S. dollar causes a loss of about 300 million yen. In order to avoid

strategies set forth in “Change for Growth.” In light of the fact that we were

(hedge) the impact of such exchange rate fluctuations on earnings, weable to achieve these targets one year ahead of schedule in FY2022 and theconclude exchange contracts.

significant changes in the business environment surrounding the Company,

The purpose of exchange contracts is to stabilize earnings by reducing

we decided to formulate the "VISION 2025," whose first year is FY2023.

the impact of exchange rate fluctuations. For orders such as ones in the

Under the "VISION 2025," toward management that is aware of share prices,

OEM Business in the M&T*1 Sector, we conclude exchange contracts

we will aim to strengthen our business foundation by improving businessat the time orders are confirmed. For the Communications Systems

performance, to improve capital efficiency by implementing financial andBusiness in the S&S*2 Sector and the Aftermarket Business in the M&T

equity strategies, and to maximize corporate value by promoting sustainability

Sector, we conclude contracts about one year ahead on a regular basis.

management, in order to achieve a P/B ratio above 1.0.

This means that even if there is a large immediate change in theexchange rate, there will be little impact on earnings during the period ofRealization of management with awareness of capital costs

ratio of interest-bearing debts to equity (D/E ratio) of 0.6 or less, anda ratio of equity attributable to owners of the parent company to total

9% or more

0.6 or less

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

Total payout ratio

approx.

Under "VISION 2025" we will continue to focus on generating cash flow

for shareholder return and improve capital efficiency by adding ROIC as aand ensure an effective outflow of cash after making the use of funds clear.

new financial indicator.

Inflows of cash over 3 years are expected to be 100 billion yen, including

For the purpose of the Company, ROIC is defined as “the fiscal-year

cash of about 10 billion yen resulting from the sale of businesses and●S hareholder return: 		

approx. 65 billion yen

10 billion to 13 billion yen●R epayment of interest-bearing

30 to 40%

debts, etc.,:
5 billion to 10 billion yen

100 billion yen*

*3:Accumulated total of 3 years fromFY2023 to FY2025

3

In formulating "VISION 2025," we changed our shareholder return policy based on

yen of the ordinary dividend and 5 yen of the special dividend resulting from thethe expectations of shareholders and investors, as well as the Company’s businesshighest-ever business performance for the period since the management integration

environment and status of equity.

in 2008 and the gains on the transfer of non-current assets. In addition, as a result

Under the new shareholder return policy, we will flexibly acquire treasury sharesof acquiring 4 billion yen in treasury shares between May 8 and June 8, 2023,

while balancing the utilization of equity for medium- to long-term profit growth

the total return amount was approximately 6 billion yen, and the total payout

and the effect of improvement of capital efficiency, in addition to the existingratio to profit (loss) attributable to owners of the parent company in FY2022 wasdividends. In so doing, we will change the guidelines for shareholder return from theapproximately 37%.

conventional dividend payout ratio to the total payout ratio, and set the standard

The Company plans an ordinary dividend of 8 yen for FY2023, and plans to continue

for the total payout ratio at 30 to 40%, in order to enhance shareholder return

increasing the dividend by 1 yen each year from the ordinary dividend of 5 yen in

more than ever. For the time being, we plan to allocate approximately 40% of the

FY2020.

Based on this concept, the dividend for FY2022 was 12 yen in total, including 7■ Shareholder return policy● Return policy: Total payout ratio of approx. 30 to 40%● Dividends: Aim for stable dividends and continuous dividend increase● Acquisition of treasury shares: Agile implementation within the limit of the total payout ratio

while maintaining financial soundness and ensuring investment in growth businesses●

Changes in dividends per share（yen）●

Dividend payout ratio and total payout ratio（%）

8

Total payout ratio approx.

30 to 40%

7

Capital allocation optimization

15 billion to 20 billion yen

Growth investment

total return to dividends and approximately 60% to acquisition of treasury share.

price measures, we hedge future foreign exchange risks.
*1: Mobility & Telematics Services Sector*2: Safety & Security Sector● Investments in new business, etc.:

New shareholder return policy

those exchange contracts. By taking measures against foreign exchange

awareness of capital costs, we will implement more aggressive measures

JVCKENWOOD Integrated Report 2023

approx. 90 billion yen

D/E ratio

65

Total payout ratio approx.
5
Acquisition oftreasury sharein the "VISION 2023." In addition, in order to realize management with18

approx. 35 billion yen

Cash flows from operating activities

ROIC

assets of 35% or more in FY2025, the final year. This way, we will further
promote the improvement of our business structure that we promoted

Strategic investment

10% or more

35% or moreduring that period, including changing production locations and taking
Under "VISION 2025," we set forth targets of ROE of 10% or more, aSales of assets, etc., approx. 10 billion yen

Hedging foreign exchange risk to avoid profit/loss impactof 12 billion yen or more, ROE of 10% or more, and a ratio of equity

Cash-out

ROE

average of (core operating income after tax + equity method profit orloss)/invested capital (shareholders’ equity + interest-bearing debts).” ByCash-in37%

FY2021

FY2022■■ Ordinary dividends ■ Special dividends

FY2023(planned)

FY2021

Shareholder return ratio
Acquisition oftreasury shareStock
dividend
approx.

*4

approx.

60% Total payout 40%
ratio approx.

30 to 40%

Dividend
payout ratio
17%
FY2020●

FY2022

Accumulated total
for FY2023-2025*4:Total payout ratio to profit (loss) attributable toowners of the parent company for FY2022

JVCKENWOOD Integrated Report 2023

19

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Sustainability Strategy
Business Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 2

Business Strategy
Mobility & Telematics
Services Sector
Car navigation system

In order to respond to changes in themobility industry, such as the shift to EVs
and autonomous driving, the Company
will redefine mobility in the new normal
and expand our business by adding
additional elements to automobiles.

●

Representative Director of the Board,
Senior Managing Executive Officer,
COO Mobility & Telematics Services Sector

Masao Nomura■ SWOT analysis

Revenue and core operating income

Revenue
CAGR in sales: +Revenue

157.1
billion yen

164.3
billion yen

197.6
billion yen

3.0%
216

●

In-vehicle audio and visualtechnologies●

Shortage of development
resources●

Providing solutions for connected
products●

Profitability of existing business●

Presence of OEM business in theAmericas market

230 to 240
billion yen

billion yen●●

FY2020

FY2021

FY2022

FY2025(Target)FY2030(Target)Core operating income

FY2022

4.4 billion yen

FY2025 (Target)

7 billion yen

Safe and secure products withhigh reliability

Strength

Weakness

Opportunity

ThreatMobility industry undertransformation including the
spread of EVs●

Expansion of needs for preventionof traffic accidents●

Expansion of the non-automotive
mobility market

OEM Business

Telematics Service Business

The Company sells mainly car navigation systems and dashcams as products

Based on the cumulative actual sales of more than 2.3 million

for the domestic option (dealer-installed option) market. Over the longconnected-type dashcams (as of the end of March 2023), we aim toterm, however, this market is expected to gradually shrink as more of thoseincrease the added value of the M&T Sector by shifting to the service

products are installed on the vehicle production line (factory-installed). Underbusiness through developing data business, proposing non-automotive

these circumstances, it is likely that suppliers will further decrease, but thesolutions, and expanding our business overseas. Specifically, we will

Company will seek to increase its market share while establishing a firm

try to develop new business models, including service businesses such

position.

as the utilization of visuals technology for connected-type dashcams

Regarding car navigation systems for the domestic market, we will work toand accumulated data, and the provision of social infrastructure in the

improve profitability by reducing total costs including logistics costs throughedge AI market.

domestic production, controlling exchange rate fluctuation risks throughstrengthening domestic procurement of parts, and reducing costs throughdesign improvement in response to production line automation.

●

Results and forecasts of sales revenue in OEM business(billion yen)

The Company seeks to maximize revenue from our business as a whole160

by expanding revenue through strengthening the overseas OEM Business,
which develops and sells in-vehicle audio systems (speakers and amplifiers),●

Medium- to long-term contractionof existing businesses●

Increased competition due to theentry of global companies andstart-ups

vehicle optical lenses, as the business development taking the expansion

Divergence between market
prices and costs due to exchange
rate fluctuations and price hikes

to maintaining the size of revenue from products for the domestic dealer-●In-vehicle amplifier/antenna/speaker

Dashcam

Orders expected120

in-vehicle antenna systems for connectivity (antennas and cables) and in80
Orders confirmedof the business domain due to the shift to EVs into account, in addition40

installed option market by expanding our market share. (See p. 22 for details)
0

Aftermarket Business

FY2020ResultFY2021ResultFY2022
ResultFY2023Plan

FY2024Plan

FY2025Plan

We aim to lay a sustained revenue base by providing a wide rangeof product lines that enrich mobility life, such as car navigation

Medium-to long-term growth scenario

systems, dashcams and car audio systems that take advantage of
our strengths in the visual and audio fields, and making the most of20

The mobility industry is globally undergoing a period of allegedly once-

including environmental contribution and growth sustainability.

in-a-century major transformation with the shift to EVs, autonomous

Creating a sense of excitement in mobility life is this business’s origin

driving, and support for Mobility as a Service (MaaS). In this period

and the Company’s mission.

of transformation, the Company has set "Change for Growth" as

Specifically, we will strengthen the overseas OEM Business based on

the theme of its medium-term management plan "VISION 2025."

products that respond to changes in the market, mainly including

The Mobility & Telematics Services (M&T) Sector aims to evolve into a

the shift to EVs, and build highly profitable business models bybusiness recognizable from a global perspective by providing audio,

shifting to the service business. And we aim to maximize revenue by

visual and data services making the most of assets such as the brandaccelerating mobility entertainment proposals, which are our origin,power, technological capabilities, and global sales channels that theand optimizing the balance of investment in the OEM Business, theCompany has cultivated to date.

Aftermarket Business and the Telematics Service Business.

In addition, by redefining mobility in the new normal, we will expand

By providing all stakeholders with "excitement and peace of mind" inour business by adding additional elements to automobiles and furthersocial infrastructure and mobility life through these business activities,

evolve our business based on the Company's sustainability initiatives

we will contribute to the sustainable improvement of corporate value.

JVCKENWOOD Integrated Report 2023

the brand power we have cultivated and our global sales network.
Change in the market environment

Mid- to long-term growth scenario

OEM・Rising ratio of EVs in Europe, the United States,
China and emerging markets
・Shift from car navigation systems to display audio
systems・Expansion of the overseas OEM business centeredon in-vehicle speakers, amplifiers, antennas,
cables, optical lenses, and display audio systems in
response to changes in the market

Aftermarket

・There is room for growth in sales of dashcams
・The market as a whole is on a gradually shrinking
trend・Achieve qualitative transformation while reaping
profit of the remaining players and maintaining ahigh market share

Telematics Service

・The market will grow toward 2030

・Expand data business based on cumulative actual
sales of 2.3 million of connected-type dashcams
・Global business expansion

JVCKENWOOD Integrated Report 2023

21

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Sustainability Strategy
Business Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 2

Business Strategy(3) Expanding orders for display audio systems

Priority strategy

In the overseas OEM Business, display audio systems have been sold

●

Japan
38％

Asian market. In FY2022, we received an order for a new largeResults and forecasts of sales revenue for overseas OEM businessscale project of approximately 170 million US dollars (the delivery is(billion yen)scheduled to start in early 2024) from a manufacturer that operates in●120

the North American market. As the demand for display audio systems
is expected to continue growing in overseas OEM markets, particularly
record and assets we have accumulated in the Southeast Asian market.

CAGR in sales 13%

Japan
25％

FY2021
resultOverseas62％（1,000 units）

FY2025
plan

EMEA

APAC

20,00010,0000Overseas75％

Americas30,000in the Americas, we aim to increase orders while leveraging our track60

Domestic and overseas sales ratio of OEM business verseas OEM (dealer-installed products) market forecast
Obased on JVCKENWOOD's survey: Car navigation anddisplay audio sales by region

mainly to Japanese automakers for their products sold in the Southeast

Expansion of the overseas OEM Business
Under “VISION 2025,” in the M&T Sector, we will position the overseas
OEM Business as a growth-leading business in light of changes in thebusiness environment such as the expansion of the EV market and thecontraction of the aftermarket services market, and aim to increase
revenue focusing on the development of in-vehicle audio systems (speakers
and amplifiers), in-vehicle antenna systems for connectivity (antennas andcables), in-vehicle optical lenses, and display audio systems.

●

0

FY2021ResultFY2022
ResultFY2023Plan

FY2024Plan

FY2025Plan(1) Increased orders for in-vehicle audio systems andin-vehicle antenna systems for connectivity

has also been working to expand its business in the North American

One of drivers of the OEM Business is ASK Industries S.p.A. (ASK),

FY2021ResultFY2022
ResultFY2023
Forecast

FY2024
Forecast

FY2025
Forecast

Product image of display audio systems

spaces.

Company is also promoting receiving orders from Japanese automakers

Building new highly profitable business models in the
Telematics Service Business

which became a subsidiary in 2015. ASK is an Italian company that has

for factory-installed products using products made by ASK, and will aim

In the Telematics Service Business, there have been

business models by providing services utilizing various data

engaged in the development, manufacturing and sale of automotive

to expand sales channels in Japan.

various cases of implementation, such as the delivery ofacquired by connected-type dashcams, such as services

parts related to audio and communication since its foundation in 1965.

connected-type dashcams for auto insurances and provision

for the elderly, advanced driving diagnosis, support for

Through a long and strong partnership mainly with major Europeanof telematics services based on them, the business forurban development, and support for remote operation of

automotive manufacturers, it supplies in-vehicle audio systems (speakers

fleet management, and the development of telematics

construction machinery.

and amplifiers), in-vehicle antenna systems for connectivity (antennas

solutions such as cloud-type taxi-hailing systems. By making

In this business, we will continue to provide customers withand cables), etc. ASK operates globally with its subsidiaries in Germany,

connected-type dashcams and other Internet-connected

new added value and services by leveraging AI, IoT and other

Poland, Tunisia, the United States, Brazil and China, in addition to Italy,

products and services equipped with or supporting morelatest digital technology and big data through the utilization

where it is based. In China in particular, ASK has been in line with theintelligent functionality, we aim to increase their added valueof open innovation in addition to technological assets theentry of major European automakers, which are its customers, into theand expand the business domain from automobiles to living

Company has cultivated.

market in response to its European customers’ global sourcing. The

We aim to develop new markets and build highly profitable

Chinese market, and has since been expanding its own business while
acquiring new customers that are local manufacturers. Recently, ASK(2) Global business expansion

high-end systems for luxury vehicles. Even in the era of EVs, we will

The OEM Business is expanding globally by maximizing the Group's

meet customer needs and support all types of vehicles through our

synergies. The Company has strong partnerships with Japanesemanufacturing technology with high development capabilities andautomakers, while ASK has strong partnerships with European

highly automated production lines.

Services for the elderly

Advanced driving diagnosis

Support for urban development

Support for remote operation of construction machinery

Services to contribute to extending
driving life of the elderly by detecting
driving behavior and deteriorationof cognitive functions specific to theelderly based on data from dashcams

Driving diagnosis that can predict
accident risks based on driving
behavior and the driver’s conditionand provide feedback that leads toimprovement of driving behavior

The dashcam detects abnormalities in urban
facilities such as road damage and bird nests on
utility poles. Detected matters are shared withthe local government and facility companies tocontribute to labor-saving in urban development

Support for remote operation of
construction machinery by utilizing
dust-proof and water-proof
dashcams that can withstand use
in harsh field environments

and Chinese automakers. In addition, JVCKENWOOD Hong Kong
Holdings Ltd., which develops and manufactures in-vehicle opticallenses, has established a network mainly in China and also in Europe
with the starting point in Hungary.
As for the Group's in-vehicle audio systems (speakers and amplifiers)
and in-vehicle antenna systems for connectivity (antennas andcables), all customers are involved from the product design phase,
ranging from basic systems for vehicles with affordable prices to

22

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

23

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Sustainability Strategy
Business Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 2

Business Strategy
Safety & Security Sector
Security system

The Company aims to acquire the second
largest market share to grow to salesof 100 billion yen by positioning theCommunications Systems Business asa growth-leading business in order tomake it our profit-generating driver.

Director of the Board,
Senior Managing Executive Officer,
COO Safety & Security Sector

conventional narrowband wireless business and rebuilding the revenue base.

to safety and security in society, in places ranging from public facilities to offices,
commercial spaces and schools by supporting "talk," "communicate" and*2: A digital radio standard developed for the US public safety market"listen" in business and education. We will strive for the recovery and expansion*3: Short for Digital Mobile Radio, an international digital radio standard■ SWOT analysis

Revenue
CAGR in sales: +3.6%

Revenue

60.9
billion yen

FY2020●58.1
billion yen

FY2021

74.7
billion yen

90 billion to
100 billion yen

83billion yen●●

FY2022

FY2025（Target）

FY2030（Target）

Core operating income

FY202210.7 billion yen

FY2025 (Target)

12 billion yen

●

●

●

of the business by building on our strengths in the integration of development,

Support for customization
for higher quality,
higher functionality andoptimization for customers●

Network of approximately 900
distributors in North America●

Clear sound quality andnoise cancelling function

Sales structure andpast performance incomparison with market
leaders
Sales structure
dependent on
distributor networks

Strength

Weakness

Opportunity

ThreatRapid expansion of demand
for switching to digitalradios in the United States
E x p a n s i o n of d e m a n d fo r
wireless systems for crisis
management around the world

Visual system solutions help customers solve business problems such as preventionof accidents and crime and safety management. Audio system solutions contribute

Akira Suzuki*1: Support for VHF/UHF and 700/800 MHz frequency bands● Revenue and core operating income

Medical image
display monitor

Professional radio system●

More severe competition due
to the entry of new players
from outside the existing
professional wireless market
into the broadband market

Professional Systems Business

manufacturing, sale, construction and maintenance.

In Japan, the Company develops and sells visual system solutions (security camera

In the healthcare business, we aim to increase sales of Rein Medical's visual systemsystems and image analysis solutions) and audio system solutions (broadcasting

integration for operating rooms, which has been introduced in more than 1,000

systems, conference systems, etc.). We are working to strengthen our business ofprojects mainly in Europe, in addition to high-definition medical image displays thatsoftware and application services.

display mammography images and various types of radiographic medical images.

●

2022
（予定）

2023
（予定）

Professional Radio Systems Market Forecast based on JVCKENWOOD's survey (million USD)●

Public safety market

A single radio unit enables intercommunication between police and fire departments, etc.
and school security in the same municipality in the event of an emergency

Private market

es

im

.2 t
.1

4,645

Example of use of the VP8000 tri-band P25 digital radio

Example in the US market

x
pro

3,871

Ap

.2

Expansion of the market sharethrough stable product supply

PoliceAmbulance

.1
rox
pp

5,691

2023

2024

Security market

Public safety markets

es

tim

6,629

FirefightingA
2022

Elementary andsecondary education

VP8000Higher education

Enables seamless intercommunication

2025

Medium-to long-term growth scenario
Priority strategy

24

Communications Systems Businessand orders and sales are increasing in North America. VP8000 covers three band

Today, disaster prevention and business continuity planning (BCP) are increasingly

frequencies (VHF, UHF and 700-800 MHz) and two digital radio protocols (P25

Communications Systems Businessand is also working to increase production to eliminate the backlog of orders for the private
sector market as soon as possible. By rebuilding supply chain management and realizing

attracting attention from around the world, and the demand for wireless systems

and DMR ) in a single unit. As an example, it can enable mutual emergency

In order to achieve net sales of 100 billion yen, we will focus on the following three pillars offor crisis management is expanding. In the United States, in particular, the demandcommunication between the police and fire services and the school security (private

growth as our priority.

stable production of products, we will strive to supply products that provide customers withfor switching from analog to digital radios has increased and is expected tosecurity companies) in the same municipality. The quality level and functionality(1) Aim for net sales of 400 million dollars and a share of 10% in the North American

peace of mind.

continue increasing, and large government budgets have been allocated to privateof this model have already been highly evaluated by the market, and we expect

public safety market(3) Expand business in the area of disaster prevention and contribute to the SDGs

security at educational institutions and to the public safety sector as a whole

it to be a catalyst for accelerating the expansion of our market share in the North

There are more than 3,000 counties in the United States, and the demand for switching

In Japan, which is hit by many natural disasters, both the government and the people areincluding police and fire services, which has driven the demand.

American public safety market. We believe that the Company can grow in thefrom analog to digital radios, and replacement of old digital radios with new digital ones, isbecoming more and more aware of disaster prevention. The Company will leverage its know-

Going forward, we aim to increase our market share in the North American publicmarket it has entered by continuing development of such highly reliable products

expected to continue. Focusing on small and medium-sized local government agencies andhow in the professional radio system business in North America to expand the business in thesafety market and achieve net sales of 100 billion yen in the Communications

and solutions.

cities, customer segments in which the Company excels, we will achieve the sales target ofarea of emergency radio systems in Japan. We regard it as an important initiative that also

Systems Business by providing the following two customer value propositions.

(2) Broadband technology provides new added value to communication methods

400 million dollars by taking advantage of the track record we have cultivated for over 40

assists social contribution based on SDGs ((11) Sustainable cities and communities and (13)(1) Stably and continuously provide highly reliable communication methods

In the professional radio system market, although the broadband market

years in North America.

Climate action).

The wireless systems industry is an industry with high barriers to entry due tois expected to grow in the medium to long term, the pace is not rapid.

(2) Overcoming supply chain problems and realizing stable supply

the need to ensure communication security (confidentiality). In this industry, theSince response to the broadband market requires significant investment,

Due to the COVID-19 pandemic and the global shortage in semiconductor supplies since

Professional Systems BusinessCompany has over 40 years of experience and a strong customer base. In January

the Company will strengthen the broadband solutions business, partly

FY2020, the market has been suffering from shortages of products. The Company has

In rebuilding the business, we aim to transform it into a growth business through selection and2023, we began selling our new tri-band*1 P25*2 digital portable radio "VP8000,"by collaborating with other companies, while expanding its share of thesuccessfully restored production by making design changes and securing replacement parts,

concentration of developed businesses and improvement of the business structure.

JVCKENWOOD Integrated Report 2023

*3

JVCKENWOOD Integrated Report 2023

25

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Sustainability Strategy
Business Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 2

Business Strategy
Cases of system development in cooperation withcustomers in the Communications Systems Business

Safety & Security Sector

Case 2Distributor to US local government agencies“VP8000 is not just a home run, but a grand slam”

Direct interaction with overseas customers leads to future solutions and products
Customer-Oriented Business Immersion Initiative for YouthTo young employees who are important players in the creation of solutions and innovation and dare to leave
Japan and work in the United States and other countries around the world, the Communications Systems
Division provides a program that dispatches such employees to customers who are actually using our products or
systems. This program aims to increase customer contacts and create products and businesses that contribute tosolving problems from customers’ points of view.

Case 1The Venetian Resort Las Vegas“KENWOOD's professional radio system has all required basic features and quality,
and is more reasonably priced than other products. And training and daily support
are provided sufficiently. That is why we have been using it for many years.”This is exquisite praise we received from our distributor who hasfor a long time, the distributor recognized "the multi-protocol systembeen looking forward to our new tri-band P25 digital portable radiothat enables mutual communication among different communication"VP8000," which we started selling in January 2023. In addition to

standards" as the greatest point of differentiation. We are working on"reasonable price," "versatility" and "meticulous service and support,"

an order from this distributor for a tri-band system, and we discussed awhich have been points about KENWOOD products highly recognized

new business proposal on the occasion of our visit.

Comments from a dispatched employee

This was the first time I had a direct exposure to customer feedback, includingthat of end users and dealers in the United States, and the program was
fruitful. Through customer feedback, I realized and was reminded that
expectations for VP8000 are very high, and if we sell a good product, we
will receive high regard. I also found that users use systems in diverse areas,
and multi-protocol systems such as P25 + NXDNTM*3 are the very point ofdifferentiation from our competitors. (Person in charge of product planning)*3: "NXDNTM" is a trademark and/or registered trademark of ICOM INCORPORATED and JVCKENWOOD Corporation.

Case 3The Venetian Resort Las Vegas, a luxury hotel in Las
Vegas, United States, is the first customer to install
the Company's first digital professional radio system,
NEXEDGE®*1. The customer has continued using our

products and systems since the initial deployment, andis currently using about 3,000 portable radios and 20
repeaters for voice communication by receptionists,
security staff, and other staff in the hotel.
*1: NEXEDGE® is a registered trademark of Kenwood Corporation in the U.S.A. and some other countries.

Distributor (center)

Fire station near Los Angeles“The design, size and operability of VP8000 have improved compared to the previous
model, and I got a good impression. As many Americans are large people, I hope you
will understand their physical characteristics well to further improve products.”
We visited a fire station near Los Angeles to discuss VP8000
and check the installation of the KENWOOD professional radio

Comments from a dispatched employee

As many as 20 repeaters (NXR-5800)
in actual operation were appropriately
assigned as call channels throughtrunking operation* 2 , and the LED
lamps on the front panel indicatingtransmission/reception operation wereturned on and off. This scene wasimpressive and I realized that a large-scale
system was playing an active role in thefield. (Person in charge of development)*2: T o automatically assign a vacantchannel each time a call is made,instead of permanently assigning a
specific band frequency channel to auser or terminal.

26

JVCKENWOOD Integrated Report 2023

system in the fire station.

Comments from a dispatched employee
A fire engine stored in a garage of the fire station

The vehicle in which the end user actually installed radio
systems was crowded with various installed devices. In suchan in-vehicle environment, I felt an important point was theflexibility of installation that allowed for installation in any
location, at any angle, in any direction. (Person in charge ofdevelopment)

External view of The Venetian Resort Las Vegas

KENWOOD professional mobile
radio used in the fire engine

A repeater installed in the hotel’s server room

The status of communication isindicated by numbers and lamp color

Checking the operational feelingof the radio system

Employees who participated in this program have been able to gain awareness for future product development
by listening directly to customer feedback. In addition, employees were very happy and got great energy for
future development work when they happened to see users using the models they developed.

JVCKENWOOD Integrated Report 2023

27

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Sustainability Strategy
Business Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 2

Business Strategy
Entertainment Solutions Sector
The Company will also strengthen
the game and animation businessby linking our Media Business andEntertainment Businesses to build
our status as a luxury brand.

Headphones/earphones

Executive Officer
COO Entertainment Solutions Sector
General Executive of Media Business Division,
Entertainment Solutions Sector

Hatsuhiko Iwasaki

Portable power station

PTZ Remote Camera

Imaging device

Projectors

and visual technologies suited to that demand and expanding

quality, high image quality, realistic feeling, and comfort,

our range of high-priced and value-added products.

and provide a deeply moving experience through music andIn order to achieve the expected value creation, we willvisual content.

bridge the real space and the virtual space with high sound●●■ SWOT analysis

Revenue and core operating income

Revenue●

CAGR in sales: +4.3%

Revenue

65 billion yen
50.1 billion yen

53.4 billion yen

67 billion to
70 billion yen●

57.3 billion yen●

FY2020

FY2021

FY2022

FY2025(Target)FY2030(Target)●Core operating income

FY2022

FY2025 (Target)●

800 million yen 1 billion yen

Three brands (KENWOOD,
JVC, Victor)"Visual" and "audio"
technologies that achieve
high image quality andhigh sound quality
Expertise in musicbusiness

Primarily a one-time salebusiness, developmentof a XaaS *1 businessstructure● Market share in the digitalmarket●Weakness

Opportunity

ThreatFavorability for sustainableproducts and services froman ESG perspective●

Maturation of key
business markets●

Market oligopoly by
global IT and musicentertainment companies*1: X as a Service

Medium-to long-term growth scenario
The Entertainment Solutions Sector consists of the MediaBusiness, which deals with products, including headphones,
earphones, portable power station and imaging devices, andthe Entertainment Business, in which the Group company
JVCKENWOOD Victor Entertainment Corporation plays thecore role.
The Media Business will expand the development of remoteand virtual-related products and services by utilizing threebrand assets: KENWOOD, JVC, and Victor, and focusing on
development of distinctive technologies and products, and a

Headphones and earphones

Portable power station

PTZ*3remote camera

Projector

Expansion of highprice-range lineups● Safety, security, and● Deployment of remote● Deployment of high●

● Proposal of strategic

preparedness● Convenient andproducts by application

enjoyable in daily living
and outdoor activities

camera including
peripheral devices andapplications that realizes
customer requirements

Imaging device

value-added models
utilizing D-ILA● Development of

next-generation
communication device
business leveraging
D-ILA devices

Advance development for further growth ●3D engine ●Low-latency IP*4 transmission system ●Cloud services ●Music service platform

Strength

Worldwide expanding
trend in the entertainment
market, including gaming,
anime and metaverse

Priority measures and initiatives for growth

proposal-based business approach.
In the Entertainment Business, we will unearth next-generation
artists who are strong in the streaming market and manage
them in-house, and grow the business through expanding
live performances and streaming hits. In terms of our efforts
in new business areas, we will enter the game applications
market, strengthen our IP*2 Peripheral Business, including theuse of anime IP, and build a New Entertainment Business bylinking our Media Business and Music-related Business.
*2: Intellectual Property*3: Abbreviation for pan (P), tilt (T), and zoom (Z) *4: Internet Protocol

Music-Related Business

IP*2 Peripheral Business

Setting the growing streaming market as our top target,
we will focus on developing new artists who are strong instreaming, while utilizing the know-how we have nurtured
through the management of hit songs and artists thathave resonated with Generation Z, in order to expand ourbusiness. As a cross-border user approach, we will establish
overseas sales channels, including concluding agreementswith leading local DSPs*5, and also work to increase sales
through globally distributing anime-related and J-pop hits.
In the peripheral business, in conjunction with the recoveryof the live market, we will work to expand the artist
management business in which we own rights, and increase
sales and profit margins by expanding revenues from live
music, merchandise sales, and the number of fan clubmembers.
We will continue to invest in the development of artists withthe aim of becoming an entertainment company with astrong presence that continues to disseminate artists, music
and trends that represent the times.

We will strengthen and expand our IP peripheral business bydeveloping IP that we own rights to, IP of virtual artists suchas TV anime, theatrical anime, and Internet idols that can beutilized through partnerships, and original large games.
As the first step, we developed the first all-new 3D action
RPG *6 for the "Tokyo Revengers" TV anime series, andannounced our plan to begin distribution of the game in
the winter of 2023 (public relations announcement June18, 2023). We will further expand our business, particularlyin the entertainment sector, where the market is growing
rapidly, by advancing the development for distribution
release. Following the first step, we will strengthen thevisual business, expand production investment, and acquire
visual production personnel to achieve full operation of thisbusiness in FY2025 and beyond.
*6: Role-Playing Game

*5: Digital Service Provider

Priority strategy
Media Business28

As demand for remote and virtual-related products andtriggered by COVID-19, we aim to secure our status as aservices expands due to changes in the market environment

luxury brand in audio and visual by establishing key audio

JVCKENWOOD Integrated Report 2023

"Walküre," a music unit created from the Macross seriesMusic and visual content© Ken Wakui, Kodansha Ltd./Production Committee of the anime "Tokyo Revengers"

JVCKENWOOD Integrated Report 2023

29

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Our Sustainability Strategy●

Promotion Structure
Board of Directors
President and Representative Director
Sustainability Committee (Chair: CEO)
Sustainability Management Strategy Committee

Toward Sustainable Management

Responsible person: Officer in charge of Corporate Strategy Dept.

Environment Subcommittee
Responsible person: Officer in charge of Sustainability Management Office

M&T
SectorS&S
Sector

ES Sector

Administrative
Division at Head
OfficeAffiliatedcompany

Supplier Committee
Responsible person: Officer in charge of SCM Dept.

JVCKENWOOD believes it important to meet the expectations of all stakeholders through its
business activities in keeping with its corporate philosophy of "Creating excitement and peace

Process for identifying material issuesof mind for the people of the world." Continuing to be a company that is trusted by, and that
contributes to, society will ensure our sustained growth.
In April 2023, we formulated a new medium-term management plan "VISION 2025" aimed at
improving sustainable corporate value and shareholder value by further evolving our change for
growth as a company. Specifically, we aim to realize sustainability management that simultaneously
Managing Executive Officer
Assistant to Head of Administrative Division
General Manager of Corporate Strategy Department
In Charge of New Business Development

Kazuyoshi Hayashi

achieves "profitable growth" and "solving social issues on a global scale" by organizing ourcorporate social responsibility into Fundamental CSR such as thorough compliance and risk

With the value underpinned by our corporate philosophy of“Creating excitement and peace of mind for the people of
the world” at the core, the Company has determined social
issues strongly connected with its business on the basis of
the Sustainable Development Goals (SDGs) and identified
material issues. KPI is set for each material issues to monitor

management, and Strategic CSR including a CSV perspective on ESG in our business strategies.

Three steps from organizing the concept of material issues to resetting KPIAction 1

Action policy for sustainability initiatives
JVCKENWOOD has established the following five-point action
policy to realize sustainability management. These points
are reflected in specific sustainability promotion activities for
implementation throughout the JVCKENWOOD Group under
the sustainability promotion system.
1. Top management promotes initiatives
2.Set KPI and targets consistent with the mediumterm management plan
3. Encourage the participation of all employees
by linking the sustainability initiatives to allbusiness activities
4. Achieve SDGs by contributing to Society 5.0
5. Proactively disclose the initiatives in an easy-tounderstand manner to stakeholders via websites
and other means

JVCKENWOOD established the Sustainability Management Officein April 2018 under the supervision of the Board of Directors toquickly implement its sustainability strategy.
In FY2023, we also established the Sustainability Committee,
an organization that promotes sustainability in general, as agovernance structure under the direct control of the CEO toformulate sustainability strategies and examine measures. The
Committee meets regularly twice a year plus holds extraordinary
meetings as necessary and reports the content of discussions to

JVCKENWOOD Integrated Report 2023

Organize the concept ofmaterial issues● Discusses

We have developed a new logo that expresses our intention to
grow into the future through sustainability management with amotif of branches and colors of the eight social issues of the SDGs
that our Group can contribute to solving.

the positioning ofmaterial issues with the vision
for FY2030 based on the new
medium-term management plan
"VISION 2025" and our corporate
philosophy

Action 2

Action 3

Re-identify material issues● Re-identify three material issues fromthe perspectives of SDGs, SASB, ESG
rating agencies, etc.
● Re-evaluate the relevance andimportance of the new medium-term
management plan "VISION 2025"

Reset KPI
Review KPI consistent withthe business plan of the new
medium-term management plan
"VISION 2025"● Establish a system for regularmonitoring and KPI review●

Our three material issues

Sustainability promotion system30

the progress of efforts to resolve the issues. In September
2023, in conjunction with changes in the social environment
and the formulation of the new medium-term management
plan "VISION 2025" among other factors, the Sustainability
Committee reorganized the concept of materialities, andrevised the materialities and the KPI.

the Executive Officers Committee and the Board of Directors. In
addition, as a subordinate organization of the committee, weestablished specialized subcommittees headed by the director in
charge of each theme to set climate change initiatives as wellas identify other issues related to various themes, formulate
targets and implementation plans to achieve them, and discussand work on concrete measures. The Board of Directors monitorsand oversees the Sustainability Committee and subcommittees,
and makes decisions.

Considering the importance to both the JVCKENWOOD Groupand its stakeholders and the consistency with our corporate
philosophy, business strategy, and sustainability strategy, andlooking ahead to our vision in 2030, we have reidentified thefollowing three material issues: (1) Safety & security initiatives(2) Environmental response, and (3) Sustainable Monozukuri(manufacturing). In addition, we have established sub-material
issues linked to each material issues, and have broken themdown into themes and KPI for each material issues to deepen
the connection with our business.
It is also important to strengthen our corporate base so that theGroup can work together as one to address the three issues. This
is why we set sub-material issues, themes, and KPI to strengthen
our corporate base.

Material issues

Sub-material issues(1) Safety& Security
Initiatives◦Reduction and prevention of traffic
accidents◦Creating safe and secure communities(2) Environmental
response◦Response to climate change◦Reduction of environmental loads(3) Sustainable
Monozukuri◦Responsible supply chain◦manufacturing reform◦Accelerating innovation

Strengthening
the corporate
base◦Promoting active roles for employees◦Diversity & inclusion◦Strengthening governance

JVCKENWOOD Integrated Report 2023

31

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 1: Safety & Security Initiatives
Reduction and prevention of traffic accidents
Theme 1

Contribute to reducing
and preventing traffic
accidents by providing
information to
support safe driving
and congestion
information

KPI

Number of car navigation and display audio
system units soldFY2023: 1.5 million units
FY2023 - FY2025: 5.2 million units (cumulative)
FY2023 - FY2030: 13 million units (cumulative)*Number of units sold up to FY2022 (cumulative)

The "Saisoku Navi” AV navigation system series with enhanced
car navigation functions contributes to reducing and preventing
traffic accidents. In addition to its high image quality, highspeed response performance, user-friendly operation system,and high-precision car navigation functions, the following
safety and security support functions assist safe driving.
■ Main functions that support safe and secure

drivingP.63

dangerous driving on the display screen and in voice whena reverse run condition is detected in an interchange,
service area, parking area, etc., while driving on an
expressway.

Theme 2Contribute to reducing
traffic accidents andsupporting safe driving
by expanding the useof dashcams

Contributing
products

Car navigation anddisplay audio systems

30 km zone display: Indicates areas where the speed
limit of 30 km/h is enforced, such as residential areas,on the map to ensure the safe passage of pedestrians
and cyclists.
Voice control: Allows the driver to speak out without
taking his/her hands off the steering wheel to control
the necessary navigation and entertainment functions
while driving (2023 models* only)

The “Saisoku Navi” series deployed in the Aftermarket
Business has been recognized for its high-quality
technology and product capabilities that support thesefunctions, as well as for its industry-leading market
share performance. In the OEM Business, automotive
manufacturers are increasingly adopting the series.

KPI

Number of dashcam units soldFY2023: 1.3 million units
FY2023 - FY2025: 3 million units (cumulative)
FY2023 - FY2030: 8 million units (cumulative)*Number of units sold up to FY2022 (cumulative)

The Company's dashcam contributes to reducing and preventing
traffic accidents with various driver support functions, includinga recording function that protects the user in the case of an
accident or tailgating.
For example, our dashcams offer an AI-sensing feature, which
automatically detects sudden approaches from behind andmeandering driving and starts recording, as a recording function
to reduce the occurrence of traffic accidents. We also offer
products with forward collision and lane departure warnings asfunctions to assist safe driving.
In addition, we provide connected-type dashcams that comeswith communication functions for automobile insurance services
of auto insurance companies. The communication function allows
automatic reporting in the event of a traffic accident, enablingprompt and accurate initial response and contributing to preventing
multiple traffic accidents.

JVCKENWOOD Integrated Report 2023

P.63

automobile insurance services provided by the said group, and havebeen highly recognized.

Creating safe and secure communities*MDV-M910HDF, MDV-M910HDL, MDV-S810F, etc.

Reverse run warning guidance: Gives a warning on

32class market share in the industry. Given our strong reputation andproduct capabilities in the aftermarket, our products have been
adopted by many Japanese automakers also in the OEM Business.
Ever since our connected-type dashcams were first adopted forthe automobile insurance services provided by MS&AD InsuranceGroup Holdings in 2018, they have been continuously used for theContributing
products

Dashcams

The Company combines visual and optical technologies cultivatedover many years with its in-vehicle technology to achieve the highperformance, high reliability, and high quality recording that are
essential in dashcams. In the domestic aftermarket, we have a top-

Theme 3

KPI

Provide a stable meansof communication evenat the site of a disasteror accident or in an
emergency

Number of professional radio system units soldFY2023: 1.2 million units
FY2023 - FY2025: 4 million units (cumulative)
FY2023 - FY2030: 12 million units (cumulative)*Number of units sold up to FY2022 (cumulative)

In the Safety & Security Sector, the Company has developed anumber of products tailored to each industry and application
for the sake of creating safe and secure communities, and weengage in a total solution business utilizing a wide range ofdistribution channels.
In the Communications Systems Business, in particular, we arefocusing on providing professional radio systems for the public
safety market, such as police, fire, and emergency medical
services (EMS), where the safety and security of people’s lives
and living must be secured at the time of initial response to alarge-scale natural disaster or suchlike, in addition to ensuring
the safety and security in everyday life.
Professional radio systems are essential for creating safe andsecure communities as a means of communication in theevent of a disaster, etc. because they enable us to create
proprietary communication networks that do not rely on
the existing mobile phone infrastructure and to transmit
information accurately and quickly. Especially at a disaster sitewhere every minute counts, accurate information transmission
is required to save lives and prevent secondary damage. To
meet these needs, our radio terminals are designed to offer
robustness and low latency transmission, and to be used inany unforeseen situation, such as for direct communication
between terminals without the use of a repeater. Furthermore,in order to support the execution of operations that are directly
linked to safe and secure living, we pay attention not only tocommunication performance but also to excellent operability
based on ergonomic design. For example, our VP8000 triband P25 digital portable radio, launched in January 2023,
has been further enhanced to offer both functionalities thatassist demanding tasks and ergonomics, in terms of shapeand motion to prevent operational error, protection from
impact, and display equipment that allows users to checkcommunication status even while wearing the device, sothat firefighters wearing thick gloves at a fire scene or police
officers wearing a lot of equipment on their waists can surely
operate the radio.

P.63

Contributing
products

Professional radio systems

The Group’s radio systems are widely used not only in the
public safety market such as police, fire, and EMS, but also
in the private sector markets such as public utilities (e.g.,
electricity, water, gas and public transportation) and generalbusinesses (e.g., hotels, casino resorts, and retail). For example,
the systems are adopted by railway companies in North
America, South Africa, and China. In Japan, our products areused for mobile disaster prevention administrative radio, etc.
The Company is recognized worldwide for its high quality
and reliability, underpinned by our expertise and knowhow accumulated over the years, and for its flexible system
proposals that meet customer needs and budgets.
⇒ See p.26-27

JVCKENWOOD Integrated Report 2023

33

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 2: Environmental Response
JVCKENWOOD continues to minimize environmental impact in all our business activities, product development, and service

Responses to climate change

provision. In FY2021, we formulated our environmental vision and basic environmental policy "JK Green 2025." We have
now revised the basic environmental policy to "JK Green 2030" in order to achieve carbon neutrality by 2050.

KPI

Theme

Environmental vision
Through the creation of products and services based on advanced technological capabilities and our environmental
activities, we will work with all stakeholders to preserve the global environment and contribute to the realization of asound and sustainable society, not only now but also into the future.

Basic environmental policy, “JK Green 2030”
Following our environmental vision, we comply with environmental laws and regulations in all our products and businessactivities and contribute to the sustainable use of and coexistence with energy, resources, and organisms that are theproperty of the earth. To achieve this goal, we set and implement goals that focus on the following four key environmental
objectives.

FY2023

FY2025

FY2030

Reduction of CO2 emissions (Scope 1 + 2) (compared to FY2019)-16.8%-25.2%-46.2%

Reduction of CO2 emissions (Scope 3) (Categories 1, 4, 11) (compared to FY2019)-1.23%-4.92%-13.5%■ Approach to the initiatives to reduce CO2 emissions

To respond to climate change, we are working on initiatives
as needed that can be initiated by setting targets throughmanagement and information disclosure.
■ CO2 emissions (Scope 1, 2 and 3)
The total amount of CO2 emissions (Scope 1 + 2) associatedwith our business activities has been set in consideration of
the reduction target set by the Paris Agreement, and has
decreased since FY2019.

We calculate indirect CO 2 emissions (Scope3) generated fromvarious processes in our corporate activities, from procurement tomanufacturing, transportation, use, and disposal of raw materials.
Actual CO2 emission volume is calculated in accordance with the"Basic Guidelines on Accounting for Greenhouse Gas Emissions
throughout the Supply Chain" issued by the Ministry of theEnvironment and the Ministry of Economy, Trade and Industry. We
will continue to endeavor to reduce CO2 emissions by reducing thenumber of parts and developing energy-saving products with theutilization of life cycle assessments.

●

CO2 emission reduction targets (Scope1 + Scope2) and emission trends●

CO2 emissions (Scope 1 + 2 + 3) (FY2021)

Responses to climate change Achieve carbon neutrality by 2050
■Reduction of CO2 emissions generated from business activities⃝Scope 1 + 2 target: 46.2% reduction from FY2019 levels by FY2030■Reduction of CO2 emissions through the use of purchased, transported, and sold products⃝Scope 3 target: 13.5% reduction from FY2019 levels by FY2030 (Categories 1, 4, 11)Effective use of resources Achieving Zero Emissions (Promotion of 3R*1 Management)■Improvement of waste recycling rate
⃝Maintain the recycling rate of at least 90%■Reduction of waste emissions (per unit of net sales)⃝11% reduction from FY2019 levels by FY2030■Reduction of plastics⃝Plastic consumption volume
for containers and packaging
35.9% reduction from
FY2019 levels by FY2030■Reduction inwater consumption⃝11% reduction
from FY2019 levels
by FY2030

Environmental conservation and management Proper management of environmentally hazardous chemical substances■Proper management of chemical substances (hazardous chemical substances)⃝D efine and manage "environmentally controlled substances" based on in-house standards
determined to have significant impacts (aspects) on the global environment and the human body.

Conservation of biodiversity Maintenance of ecosystems■Seeing nature-related risks as opportunities, we will actively promote activities aimed at the realizationof the basic environmental policy at each stage of the life cycles of our own products and services inthe supply chain, contribute to the realization of a sustainable society, and conserve biodiversity.

*1: Collective term for Reduce, Reuse, and Recycle■ Activities to achieve CO2 emission reduction targets

At our head office in the Yokohama area, we are constructing Value Creation
Square, a base for value creation, with the aim of completing it in the summerof 2024. We have acquired ZEBReady certification *1 and adopted CASBEE(Comprehensive Assessment System for Built Environment Efficiency).
*1: Building energy conservation performance labeling system, which is acertification system led by the Ministry of Land, Infrastructure, Transport andTourism by a third-party evaluation organization specializing in building energy
conservation performance.

In the first half of
FY2024, we will
significantly reduce
CO2 emissions byeliminating fossil fuelboilers at all domestic
sites by replacing
them with electric air
conditioning systems.

Fossil fuel boiler before decommission( JVCKENWOOD Nagano Corporation)

34

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

35

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 2: Environmental Response
Reduction of environmental loads

Environmental response in products
We believe it is crucial as a manufacturing company to contribute to reducing environmental loads through the

KPI

Theme

FY2023

FY2025

FY2030manufacturing process, sales process, and use of products.

90% or more

90% or more

Maintain at least 90%

Reduction of CO2 emissions through evolution of Car
Navigation performance

Reduction of environmental impact by miniaturizationof products

-4％

-6％

-11％

-4％

-6％

-11％

-13.1％-19.6％-35.9％

Advances in Car Navigation performance will contribute to the
reduction of CO2 emissions by providing optimal route guidance
and traffic information, thereby promoting travel loss andcongestion mitigation. Under the theme of providing products
to reduce environmental loads by proposing functions on asustainable basis, we will use the number of shipments of car
navigation and display audio system as KPI. ⇒ See P.32

The NXR-1700/1800, a
new repeater for professional
digital radio systemcatered for overseas use,
contributes to reducing
environmental loads through miniaturization.
This product is 1/5 smaller in volume than the existing NXR710/810 repeater. This increases the number of vehicles that canbe loaded per volume during transportation, thereby improving
transportation efficiency and reducing the environmental impact of
the transportation.

Reduction of waste
・Waste recycling rate
・Reduction in waste generation (per unit sales) (compared to FY2019)

Effective use of resources
・Reduction in water consumption (compared to FY2019)
・Reduction of plastic consumption volume for containers and packaging(compared to FY2019)■ Reduction of waste■ Control of water usage

Aiming to maintain a global recycling rate of at least 90%, weare actively working to recycle and monetize wastes generated
from our business activities by sorting and decomposing themfrequently within the company.
As a result, we have achieved a global recycling rate of
91% in FY2022. Going forward, we will strengthen our 3R
management initiatives to achieve zero emissions and further
promote the reduction of the total amount of waste and therecycling of resources.

It is becoming increasingly important to understand theimpact of water risks on corporate business activities andto take countermeasures against the risks. The Company
is also working to reduce its water consumption, and as aresult, water intake at production bases has decreased. Dueto concerns about ongoing global water shortages, we areaiming to reduce water consumption by 11% from FY2019
levels by FY2030. At the same time, we will continue to treat
wastewater generated from our business activities and make ita reusable water resource to the extent possible.

TCFD initiatives
In April 2023, the Group expressed its endorsement of therecommendations of the Task Force on Climate-related Financial Disclosures(TCFD) established by the Financial Stability Board (FSB). Accordingly, inorder to promote the four items of governance, strategy, risk management,
and indicators and targets, we are restructuring our governance structure
and analyzing and examining risks and opportunities through scenario
analysis.

GovernanceRestructuring the governance structure ⇒ See P.30
The scenario analysis was conducted in accordance with the TCFD recommendations to identify risks andopportunities, and to analyze and examine impact levels and countermeasures.
・Consider transition risks, physical risks, and opportunities
・Quantifying the impact of each risk and opportunity on the Company’s business・Consider countermeasures for each risk

Strategy36

Work to reduce energy consumption by promoting manufacturing reforms linked to the new medium-term
management plan "VISION 2025."
・"Returning to domestic production" for the Japanese domestic market products
・Optimization of the layout of production bases in consideration of the total production volume
・Product development considering reduction of environmental loads, consideration of substitution ofnatural resource facilities, and use of renewable energy power

Risk management

Risk Management ⇒ See P.48

Indicators andtargets

To achieve carbon neutrality by 2050, we will promote various energy conservation activities based on the
Basic Environmental Policy, “JK Green 2030” ⇒ See P.34

JVCKENWOOD Integrated Report 2023

Launch of portable power station using recycled
batteries in electric vehicles
Three companies, Nissan Motor Co., Ltd., 4R Energy
Corporation and the Company, have jointly developed aportable power station using recycled batteries from the Nissan
LEAF electric vehicle, which will be released by the end of 2023.
It is resistant to heat and cold, can be mounted in a vehicle,
and can be stored for a long time, so it can be used as an
emergency power source in times of disaster.
With design and development to optimize the safety andreuse of used batteries, it is now possible to reduce CO 2
emissions produced frommanufacturing.
In order to preserve thebeautiful natural environment
for the future and realize a
low-carbon and sustainable
society, we, as the threecompanies, will continue towork together to promote Portable power station using
recycled batteries of EVs
initiatives.

Reduction of environmental loads of product packaging
We are expanding the use of cushioning and fixing materials
with low environmental loads. For example, by changing frompetroleum-derived styrofoam to pulp mold, we have improved
recyclability, and by changing to bio-based materials, we havecontributed to the reduction of CO2 emissions.

Reduce power consumption of Bluetooth® headphones
All Bluetooth ® headphones are designed to reduce power
consumption. With the evaluation of
the environmental load of Bluetooth®
compatible headphone products,
we set a five-year plan to reduce theenvironmental loads.
Responsible parts procurement(packing paper for headphones)
We are promoting responsible parts procurement (Protecting
forest biodiversity and the rights of local communities,
indigenous peoples and workers) by increasing the usage rateof FSC* certified packaging materials for all headphones.
We set KPI for each fiscal year to reduce the usage rate of FSCcompliant materials.
*: A certification granted by the Forest Stewardship Council to timber produced fromproperly managed forests.

We will continue to monitor international trends and actively
work to develop products that reduce environmental load.

Sustainability-linked loan
Sustainability-linked loans aim to promote environmentally

incentive to achieve the targets. In FY2022, the Company

and socially sustainable economic activity and growth byconcluded a sustainability-linked loan agreement with thesetting Sustainability Performance Targets (SPTs) based onGroup's CO2 emission reduction rate (Scope 1 + 2) as SPTs,

the borrower's sustainability strategy and linking loan terms

financing the loan. In FY2022, we achieved the SPTs.

to the achievement of the SPTs, thereby strengthening the

JVCKENWOOD Integrated Report 2023

37

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 3: Sustainable Monozukuri
Responsible supply chain

Promotion of sustainable procurement
Theme

By building a sustainable supply chain, the Company
contributes not only to our growth but also to realizing
a sustainable society.

Director of the Board
Senior Managing Executive Officer
in charge of SCM Reform

Respect for human rights◦Conducting training on human rights in procurement and logistics-related divisions (continuing)◦Conducting training on human rights for business partners (continuing)◦Establishing and operating an external consulting deskP romotion of sustainableprocurement◦Obtaining signatures in support of our CSR procurement guidelines when opening a new account◦Requesting the implementation of CSR self-audits by business partners and implementing
corrective measures for business partners with identified problems◦Participating in alliances such as RBA and taking advantage of global frameworks

Akira Suzuki

SCM*1 reform
In JVCKENWOOD, operating cash flow worsened in thefiscal year ended March 2022 from a year earlier due toan increase in material inventories brought by politicaland military tensions in certain regions, as well as global
shortages in semiconductor supplies and COVID-19. In
response to this situation, the Corporate Risk Management
Committee identified SCM risks (such as loss of profit due
to excess inventory and loss of customer satisfaction due
to delays in product delivery) as important risks for theCompany. In April 2022, we appointed an officer in chargeof Supply Chain Management Reform and establishedthe SCM Innovation Department to start SCM reform forrisk mitigation. In October 2023, in order to accelerate
SCM reform, the SCM Innovation Department and theProcurement & Logistics Department were integrated into
the SCM Department.
The department has two main missions to strengthen the
supply chain.

■ Main missions and specific activities of the SCM Department

Main missions

Initiative◦Construct a supply chain that enables supplying the necessary goods tocustomers and markets when needed and in the necessary volume at theappropriate cost (SCM reform)◦Promote S&OP*2 management through SCM reform and achieve thebusiness plan

◦Maximize cash flows from operating activities
・Proper management of inventories
・Reduction of sales opportunity losses by strengthening SCM
・Reduction of total cost by improving the efficiency of SCM-related operations◦Manage SCM Risk (Obstacle for Business Plans)・Assessment and management of procurement, production, and logistics risks
・Development of inventory strategy and strengthening supply chain for stable supply
・Optimization of lead time for supply chain-related processes

We anticipate diversifying risks such as natural disasters andgeopolitical risks and build supply chains that can tolerate
emergencies, as well as adapt to changes in the external
environment surrounding the Company. Furthermore, wewill restructure the entire supply chain, from the arrangementof raw materials to the supply of goods to final customers,from perspectives of optimality for the whole company.

We aim to improve corporate value by achieving businessplans through S&OP management, maximizing profits, andmaximizing operating cash flow while achieving to enhancedata analysis by SCM reform, visualizing the reality of SPI*3,
revamping the SPI process, ensuring stable product supply,and minimizing opportunity loss in sales.

■ Promoting visualization

SCM reform■ Strengthening procurement capabilities and optimizing logistics■ Minimizing risk impact by risk management■ Revamping the SPI Process

Pursuing highly accurate SPI operations
Increasing uncertainty due to various external factors and rapid environmental changes

S&OP
Management■ Achieving business goals by appropriate management decisions

based on fund management as well as product management

Striving to maximize profits and minimize losses*1: Supply Chain Management*2: Sales and Operations Planning*3: Abbreviations for Sales, Production, and Inventory

38

JVCKENWOOD Integrated Report 2023

■ Minimizing opportunity loss

by stable supply of goods■ Optimizing inventories and minimizing

management costs by appropriate SPI operations

Cash flows from operating activities

90 billion yen or more(cumulative total from FY2023 to 2025)

VISION 2025

Ideal state for FY2030 (KPI)

We recognize that building sustainable supply chains is important
not only for pursuing corporate growth but also for contributing
to realizing a sustainable society. Based on this recognition, weestablished the JVCKENWOOD Group Procurement Policy (the“Procurement Policy”) in October 2018 to promote sustainableprocurement in a comprehensive supply chain that includes
our business partners. Prior to this, the JVCKENWOOD CSR
Procurement Guidelines (the “CSR Procurement Guidelines”)
were established in 2017 (revised in 2020) in accordance with
the Code of Conduct of the Japan Electronics and Information
Technology Industries Association (JEITA).
We request business partners to accept the conclusion ofcontracts using our Master Agreement based on the Procurement
Policy and also ask for their understanding and cooperation of
the CSR Procurement Guidelines. We aim to contribute to thedevelopment of a sustainable society by promoting effective
sustainable procurement through the implementation of the
Guideline.

Communication with business partners
The Group has been strengthening communication with business
partners to realize sustainable procurement together with them.
At the annual Partners' Meeting, we promote awareness andunderstanding of the Procurement Policy and the CSR Procurement
Guidelines. In addition, we explain our commitment to developing asustainable supply chain by confirming the status of business partners'
sustainable procurement efforts and making continuous improvement
activities with the use of the SAQ, and request their understanding
and cooperation.

Initiatives for business partners
The "Regulation for Selecting New Business Partner," which isused for determining new business partners, sets forth the items
concerning sustainability including human rights and labor safetyin addition to environmental aspects such as sustainable resource
use and chemical substance management, as well as quality, cost,delivery time, technical capability, and stable supply capability. For
existing business partners, as a process of evaluating these items,
we sent a self-assessment sheet (SAQ*4: FY2022 revised version),
which is developed in accordance with the CSR Procurement
Guidelines and received responses from more than 90% of thosebusiness partners.
We analyze the responses to the SAQ and provide feedback toexisting business partners who are identified as having a high riskof response to the items that could lead to significant violations oflaws and regulations, particularly regarding human rights, making
written requests to improve in the relevant risks. Through thesecontinuous requests for improvement, we will work to avoid,
prevent, and mitigate risks related to human rights and othersustainability issues.

Declaration of building partnership
The Company has declared that it will work to build new
partnerships by promoting cooperation, co-existence,and co-prosperity with suppliers in the supply chain andbusinesses that are striving to create value.

Declaration of building partnership1. Co-existence and co-prosperity of the entire
supply chain and new cooperation across theboundaries of business size and affiliation
2. Compliance with the Promotion Standards
based on the Act on the Promotion of
Subcontracting Small and Medium-sizedEnterprises*4: Self-Assessment Questionnaire

JVCKENWOOD Integrated Report 2023

39

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 3: Sustainable Monozukuri
Manufacturing reforms andaccelerating innovation

Initiatives for product quality and safety in manufacturing

Through production reforms, IT reforms, improvement in the
research and technology development environment, andintellectual property strategy, the Company will establish
manufacturing standards and data-driven management torealize stable and sustainable manufacturing that responds
promptly to changes in the business environment.

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

Yoshio Sonoda

Basic strategy for manufacturing reforms
VISION 2023

Focusing on the integration of production
bases, promotion of automated production,encouragement of local production for
local consumption, and establishment of a
supplier ecosystem, we have been working
on "production ground design" and "design
revolution" that fit the total production
volume and total man-hours. We aim toestablish manufacturing standards in whichanyone is enabled to design, any place issuited to produce, production systems
are optimized and standardized, shipping
quality is ensured, and work styles arediversified.

The first phase■ Returning to domestic

Production
ground design

Strengthen cost reduction
activities through site integrationand promotion of automation

production•Car navigation systems for domestic
aftermarket transferred fromIndonesia•Projectors transferred from Thailand•Car navigation systems for domestic
OEM transferred from China■ Promotion of automatedassembly production•Launch of automated assembly mass
production of car navigation systems■ Design changes to address

Design revolution

semiconductor shortages■ Integration of design sites■ Rebuilding design standards

Increase cost competitivenessthrough simple manufacturing

VISION 2025

Long-Term Vision

The second phase•Encouragement of local production
for local consumption and cooperation
with SCM reform•Reduction of fixed manufacturing costs
appropriate to the scale of business■ Promotion of automatedproduction•Further promotion of automationsuch as parts delivery by AGVs*1■ Real-time monitoring ofproduction•Introduction of manufacturingexecution system■ Moving to cloud-based

design tools■ Linking design support tools
and procurement systems•Design interlinked with supply
and demand information of parts■ Integration of development sites(establishment of Value Creation Square)•High-efficiency design by integrating
technological development resources

The Group established a Group-wide quality management system
based on the Quality Philosophy and the Quality Policy, and has
been working together to improve the quality and safety of
products in all activities from procurement to sales, including
the resolution of quality issues by mutual collaboration among
each business division and others concerned, and a specialized
approach to improving product quality in each business area ofdesign, procurement, and manufacturing.
In the OEM Business in the M&T Sector in particular, our businessactivities need to meet the quality requirements of automotive
manufacturers, and we are regarded as superior quality suppliers
by Japanese automakers and Tier1 global-scaled manufacturers.

addition, in order to realize the policies and measures decided
at the meeting, the Quality Managers Conference, which iscomposed of quality assurance managers from all divisions,decides on specific quality activities and forms organizations suchas working groups, projects, and subcommittees as necessary toresolve quality issues.
●Company-wide quality management organizational structure
CEO
CTO

Company-wide Quality Management Committee
Chairman: Chief Executive Officer (CEO)Members: Executive Officers, business managers, and others“Customer
Satisfaction”“High Quality”"Big profits"“Environmentfriendly”

Maintain stablemanufacturing

Company-wide Quality Management
The Company holds a Company-wide Quality Management
Committee every six months. Under the leadership of the
Chief Executive Officer (CEO), personnel in charge of quality
management throughout the Group, including Executive Officers
and business managers, share the quality status of all businessareas and make prompt decisions to resolve quality issues. In

Quality Managers Conference
Chairman: General Manager of Corporate Quality Control Division
Members: Quality Assurance manager of each division

Quality Promotion Meeting
Members: Quality Assurance personnel of each divisionForms to solve quality issues(Working groups, projects, subcommittees, etc.)

For more information, visit our website.

https://www.jvckenwood.com/en/sustainability/social/safety.html*1: Automatic Guided Vehicles

Strengthening the cybersecurity system

Progress in manufacturing reforms
In efforts to return to domestic production, for which wehave been working as a part of production ground design, we
made decisions at an earlier stage to take on the challenge ofrealizing a production model based on local production for local
consumption, and promoted automated production aiming toenhance our management assets. To begin with, we started
with reviewing the product structure of car navigation systems
for the domestic aftermarket, which had been produced at afactory in Indonesia, to make them suitable for assembly andmanufacturing on an automated line. In February 2022, webegan full-scale production transfer to a factory in Nagano.
Thereafter, we transferred the production of projectors froma Thai plant to the Yokosuka Business Center. In addition,
we transferred the production of car navigation systems fordomestic OEM from a factory in China (Shanghai) to a factoryin Nagano, and in September 2023 we ceased production in
China (Shanghai). In March 2023, we transferred the car audio
development functions from Singapore to Japan.
While we proceed to reorganize production bases in an
accelerated manner, we aim to manufacture products in a
way in which the “design environment is standardized andproducts of any categories can be designed” as well as so that”products of any categories can be produced independent of
a particular base."

Readiness for Foreign exchange
SCM
Security
Returninggeopolitical risk
measuresoptimization enhancement to Japan

TimingContents

February 2022

Production transfer of car navigation systems fordomestic aftermarket
Indonesia to Japan (Nagano)

●

●

●

●

March 2022

Production transfer of projectors
Thailand to Japan (Yokosuka)

●

●

●

●

March 2022
November 2022
March 2023
September 2023

Production transfer of professional cameras
Thailand (JKET*2) → Thailand (JKOT*3)
Termination of JKET production activities
Production transfer of car navigation system fordomestic OEM
China (Shanghai) to Japan (Nagano)Transfer of M&T development functions fromSingapore to Japan
Close of development sites in Singapore
Termination of production activity in the
Shanghai plant in China

●

●

●

Efficiency
Automation

SDGs
ESG

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

We recognize that the management of confidential informationand the protection of personal information in our businessactivities are important issues for the Company and areworking to build a stronger information management system,with all employees constantly maintaining risk awareness andengaging in daily operations.
●

We established JK-CIRT/CC*4 to clarify the Group's security
system and proceed to strengthen the system, believingthat it is important to protect information assets entrusted
to us by our clients around the world and stakeholders suchas business partners, shareholders, and employees, as wellas the information assets of the entire Group.

Cybersecurity System of the Company
CEO
CTO

CISO

Company-wide Risk Management Committee
Risk Management Office

Technical Managers Meeting

Company-wide Information Security Committee
JK-CIRT/CC

Software Technology Subcommittee
Training working
group (WG)
・・・Standard coding
・Secure coding
・SBOM review

Security Technology Subcommittee

CSIRT

PSIRT

FSIRT

SSIRT

PrSIRT

Training WG

Computer
Security

Product
Security

Factory
Security

ServiceSecurity

Procurement
Security

Regulations WG
System WG
Environment WG*4: JVCKENWOOD Central Incident Response Team / Coordination Center*2: JVCKENWOOD Electronics (Thailand) Co., Ltd. *3: JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.

40

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

41

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Value Creation Strategy 3 Sustainability Strategy

Material Issue 3: Sustainable Monozukuri
Accelerating innovation

Intellectual property strategy

We aim to realize the basic technology development strategy of "Connecting

management. In addition, with the theme of "The Beginning of Challenges for

People with Space and Time to Create the Future," striving to provide

the Future" originating from "Interface," we will realize user experience fromsustainable value by technology that responds to people's instincts andthe customers’ perspective and the provision of new value by co-creation,

desires through future-oriented research and technology development based

through the activities of the Future Creation Research Laboratory, whichon the Company's strengths in visuals, audio, communications, and design

promotes open-minded activities focusing on the future 10 years ahead.

KPI

Theme

FY2023

Percentage of patent applications related to the Company’s material issues that contribute to ESG enhancement 10% or more

FY2025

FY203015% or more

25% or more

We will continue to conduct activities in line with our intellectual property strategy and aim to maximize
corporate value by creating innovation and strengthening business competitiveness.

Basic strategy: Connecting People with Space and Time to Create the FutureIntellectual Property System
The Company continues to develop a patent portfolio that supports its business"The Beginning of Challenges for the Future" originating from "Interface"
Network/Opticalcommunication
Provision of high-speed, high-capacity, lowlatency communications and high-definition
environment by the cloud services▼
Services of high-density optical device
integration technology, photonics-electronics
convergence development,
and distributed processing

Computing/AI
Value creation for a data analysis
society by next-generation computing andquantum technologies▼
Sublimation of learning and recognition throughvideo analysis, speech analysis,
language analysis toinference-based AI

Visuals, Audio, Communications, UX/UI

Simulation/Digital Twin
Foster new business models in a world
without boundaries between
virtual and real space▼
NFT technology with spatial reconfiguration
and blockchain IoT
devices linked to the cloud

Security

Creating new value/Strengthening customeroriented design management
By multiplying the new ideas generated from friction at the interface withorganization to develop an interface for the creation and discovery ofpeople through thorough marketing by the Company's technologicalnew business opportunities and implement the development of service

capabilities, we will implement customer-oriented design management, creating

infrastructure.

a chemical reaction in an accelerated manner and realizing customer needs.

Breakdown of patent applications in FY2022

and promotes activities in line with its intellectual property strategy utilizing the
These intellectual property activities are regularly reported to the Board of
S&S

effectively supervise them.

16% applications in FY2022:
1,080*: Techniques for developing management and business strategies using intellectual
property information

In light of the Company's business structure, we have acquired patents to

31%●

Trends in the number of applications

1,000

applications in the Mobility & Telematics Services Sector (M&T), while800

In addition, since the establishment of the R&D Division in 2018, the division

M&T(Number of cases)
1,200

support our business since FY2017, by increasing the number of patent

Sector (ES) and the Safety & Security Sector (S&S).

37%

Number of patent

Director, and a system has been established in which the Board of Directors

Patent portfolio to support business

Administrative
divisions

16%

ES

IP landscape* (IPL).

maintaining the number of the applications in the Entertainment Solutions

In October 2023, we established the Innovation Design Center as a new

●

600
400

has strengthened its applications and has been continuously engaged in patent-

200

creation activities that contribute to the creation of customer value in the future.

0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022■ Administrative divisions ■ M&T ■ S&S ■ ES

“The Power to Realize Real Customer Needs ”

Accelerating innovation

 Creating customer value through technology and marketing Creating an interface that works for people around the world
 Building a digital service infrastructure

We move the starting point of ideas from "ownership value" to"experience value" and create an environment where hypothesis
testing can be carried out in search of "winning games," so that
employees act as internal entrepreneurs.
Business axis

R&D / Technology and Intellectual Property
Functional axis

R&D to bring business impact
 Capture market trends and customer needs

Business strategy

Chemical reaction

 Design business models and monetization models

By collaboration between business and R&D strategies, we proceed to optimize
the patent portfolio through intellectual property activities based on KPI set

New business

Growth-driving business

IPL

forth by the use of the IPL.
In addition, we expand invention and creation activities by all employees to

Restructuring business

Revenue-base businesses

understand customer needs at each phase in the value chain and to create
Marketing / Market and Customer Oriented

patents focusing on the provision of customer value.

Development of a strategic patent portfolio

Specialized and thorough marketing Capture customer segments and needs with greater clarity
 Feedback to R&D as well as the sales side

Customer-oriented design management

Patent portfolio that enhances competitive advantage

Utilization of intellectual property to connect "creation" and "earning"
We analyze and assess the value of the Company's intellectual property

Promotion of the intellectual creation cycle(intangible assets) in a broad sense, including data and know-how, leading to
Products and services
Scaling monetization
Customer experience
Creating new value

strengthening its business competitiveness.
profits by increasing customer value will promote our intellectual creation
cycle of "Create," Protect," and "Earn," which brings a virtuous cycle forreinvestment.

42

JVCKENWOOD Integrated Report 2023

CreateCreating intellectual property by investing in intellectual capital and generating
CapitalTechnology

Protect

Realize a virtuous cycle of intellectual creation

Intellectual
PropertyEarn

JVCKENWOOD Integrated Report 2023

43

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Promoting Employee Engagement, Diversity & Inclusion
Initiatives for employees
to increase corporate value■ Initiatives to realize the human capital strategy

Theme

The Company promotes human resources strategies
that increase corporate value through individual andorganizational growth.

Director of the Board
Managing Executive Officer
Head of Administrative Division

Naokazu Kurihara● Linkage between management and

HR strategy
Diversity

Themes: Corporate culture and work style reform, occupational health and safety, employee health management,
respect for human rights, and fair labor-management relations

Positioning of human resources strategy in “VISION 2025”
Following the previous medium-term management plan "VISION 2023,"

In addition, as a major company-wide theme, under the slogan of "Creating

we are implementing strategic human resources measures to realize oura rewarding workplace," we will establish "Value Creation Square" in the

management policy of "developing human resources to realize innovation and

Yokohama headquarters area as a base for creating new value. We will deepen

strengthening organizational capabilities." In “VISION 2025,” the new medium-our work style reforms in preparation for its launch in the second half ofterm management plan, we will continue to implement these measures and

FY2024. Specifically, in line with the development and relocation of offices

actively promote strengthening human capital to realize our business planin the Tokyo metropolitan area, we will realize "hybrid work" by combining

by incorporating "linking management strategies with human resources

office work and teleworking/mobile working, and will realize innovation bystrategies" into our personnel policies.

developing work environments and systems that enable diverse working styles.

VISION 2023
Factorial
designVISION 2025

Recruitment

Ideal state

Promotionof healthmanagementhuman resource strategies● Enhanced ability of each employee
to create value● Rewarding workplace● Realization of flexible working styles● Increased engagement◦ Established healthy and productive
work styles

Measures• Formulate human resource requirements and ability development plans inconjunction with management strategies• Strengthen strategic recruitment efforts for new graduates and mid-career hires• Activate rotation, especially among younger employees• Cultivate "Customer orientation" through design management training• Introduce a stock trust system for executive senior management• Enhance communication measures, including management dialogue• Develop systems such as a super flex-time system• Promote new ways of working in the Value Creation Square• Promote employment and career opportunities for people with disabilities• Respond to same-sex partners• Health management reporting• Enhancing measures to improve health literacy

Investing inpeopleEvaluation

Remuneration

Organizational
development

Introduction of the teleworking system
Promotion of computerization and electronic seals
Dissolution of assignment living away from the family
Short working hours and short working days
Working assignments in limited regions
Training system by individual course selection
Introduction of hot desking office system
Improving health literacy● Engagement

indicators● Voluntary

retirement rate

● Productivity indicators● Rate of employees on

administrative leave

for the fifth time.

top management, and we have been working to create a safe and healthy

In "VISION 2025," we set forth the goal of establishing healthy and productive

workplace by promoting the development of a "healthy and vibrant work

working styles and aim to contribute to our business by increasing output toenvironment" for each employee to maximize their abilities.

business activities. To this end, we monitor productivity indicators (Presenteeism*)

Specifically, we have been working on "mental health training for managers,"

and the leave of absence rate

"health promotion activities in collaboration with health insurance(Absenteeism), and share theassociations," "measures for long-hour working and employee care," andresults with management to strive"strengthening periodical medical examination and follow-up examination."

to improve measures.

In recognition of these activities, we have been recognized as a Certified*: Quantified working productivity

consecutive years since 2018. In 2023, we received the White 500 certificationby using the results of WLQ-J (theJapanese version of the Work
Limitations Questionnaire).

Strengthen human capital measures
Continued

Integration with management strategies
Promotion of hybrid work
Deepening diversity
Promotion of health management
Increased engagement

JVCKENWOOD Health Management Declaration
JVCKENWOOD strives to create a work environment where all employees can work healthily
and vividly in order to realize its corporate philosophy of"excitement and peace of mind for the people of the world."

Cocreativity
space■ Strategic personnel measures

We have been working on the following five pillars: Recruitment, Investing in people, Ability development, Systems and organizational structure, and Increased engagement of employees.

Recruitment

Activating recruitment in line with business strategies, regardless of whether new graduates or mid-career hires, to evolve diversity and correct age structure

Investing in people

Activating rotation, especially among young employees, and strengthening initiatives to promote understanding of the Company's business portfolio andbroaden its talent pool

Ability development

Improving the contents and efforts of existing human resource development, and examining and implementing development plans linked to management strategies

Systems andorganizational structureContinuing to revise the system necessary to realize diversity, such as introducing the super flex-time system, strengthening efforts to promote career
opportunities for people with disabilities, and responding to same-sex partners

Increased engagement of
employees

Expanding communication measures, focusing on dialogue with management and information dissemination, to improve employee engagement indicators andkeep the voluntary retirement rate low and stable

JVCKENWOOD Integrated Report 2023

● Number of trainees

The JVCKENWOOD Health Declaration was established as a message from

Creation of rewarding workplace

44● Number of recruits

Health management

Health & Productivity Management Outstanding Organizations for six
Engagement

KPI

Grow
togetherCreation of Value Creation Square
as a base for new value creation(A new building is under construction in the Yokohama
area of the headquarters, to be completed in summer 2024.)

Diversified work locations andenvironments
Achieving hybrid work

Home
OfficeShare heat

Diverse work
styles andimproved
concentration

JVCKENWOOD Integrated Report 2023

45

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Promoting Employee Engagement, Diversity & Inclusion
Diversity & inclusion
KPI

Theme

Ratio of female managers

FY2023

FY2024

7.2%

8.0%

The Company considers the promotion of diversity and inclusion as
one of its key initiatives to strengthen its corporate foundation.
We believe that creating an organization in which employees fromvarious backgrounds such as race, nationality, religion, culture,disability, work style, age, gender, sexual orientation, and gender
identity can play active roles, and increasing the engagement ofeach employee will lead to revitalization of the organization andimprovement of performance.
For example, we support female employees by conducting training
and enhancing systems such as parental leave so that they canplay active roles. The Company has also been recognized by
the Minister of Health, Labor and Welfare as an "Eruboshi," acertification in accordance with the Act on the Promotion of
Women's Active Engagement in Professional Life. The "Eruboshi"●

Occupational health and safety

certification was evaluated by the following five categories:"Recruitment," "Continuous employment," "Work styles including
working hours," "Ratio of female managers," and "Diverse career
tracks." We received the highest rating (the third level), satisfying
all evaluation categories.
In addition, following the revision of the Act in 2022, we are also
strengthening the promotion of parental leave taken by male
employees, aiming to achieve 100% of the acquisition rate.
We recognize that the ratio of female managers is a medium- tolong-term issue for the Company, and will continue our efforts
to develop people who can play an active role in the organization
for a long time and increase the number of candidates for
management positions, with the goal of achieving 8.0% in
FY2024.

Conceptual diagram of Diversity & Inclusion

Genderidentity

Religion
CultureWorkingstyle

AgeNationality

Diversity
With orwithout
disability

Eruboshi
Certification Logo

GenderRace

Etc.

Sexualorientation

Trends in the ratio of female managers (non-consolidated)

Diversity logomark
The logomark expresses how
people with diverse values
join hands and move toward
the future together. With theimage of integration of diverseraces, genders, and values,
the logomark adopted a wide
color gamut including blue,
which is a corporate color of
JVCKENWOOD.

results

7.2%
5.0%

FY2020*

Implementation of safety patrols

Human rights initiatives
The Group respects the human rights of all stakeholders involved
in its business activities and supply chain. Against the backdropof growing concern about the impact of globalized business
operations on human rights, we formulated the "JVCKENWOOD
Group Human Rights Policy" to express more clearly ourintention to respect human rights in our business activities. The
policy requires compliance not only by the Group’s directors
and employees, but also by all external partners in the value
chain, including business partners and suppliers who may havean influence through the business, and actively encourages
appropriate action through stakeholder engagement. Based on
the policy, we will continue to make further efforts to respecthuman rights in our business activities.
In order to identify, prevent, or mitigate the impacts on humanrights and continually consider how to address them, we
implement human rights due diligence. As part of this effort, we

conduct annual risk surveillance focusing on human rights risks,
identify significant human rights risks that have been revealed,
and respond by a company-wide cooperation system to the risks
that require action. In the Company-wide Risk Management
Committee in January 2023, we identified four significant humanrights risks and conducted an interim review of our efforts in June
2023.
1) Labor management of employees
2) Protection of consumers’ personal information
3) Discrimination and harassment against employees
4) Forced labor and child labor in the supply chain
As a human rights training for employees, we also conducted
online and e-learning training to thoroughly communicate with
employees about the United Nations Guiding Principles on
Business and Human Rights and the Group's initiatives.

PRIDE Index Gold
Award logo

Creating innovation●

Based on the recognition that "safety" and "health" are thefoundation of promoting employee activity, we strive to createa work environment in which employees can work safely,
comfortably, and healthily. In addition to complying with theIndustrial Safety and Health Act and related laws, we also
regularly hold Safety and Health Committees and conduct
monthly safety patrols to prevent industrial accidents byemployees.
With regard to workplace safety issues that have been identified
during safety patrols, we take corrective measures while listening
to the opinions of employee representatives. Furthermore, inorder to raise employees' awareness of safety, we conduct
occupational health and safety training sessions for domestic
employees in addition to statutory training, and continuously
strive to improve safety and health activities.

5.6%

5.5%

FY2021

FY2022

FY2023The JVCKENWOOD Group Human Rights Policy is available on our website.

https://www.jvckenwood.com/en/sustainability/social/human_rights.html

targets

8.0%

FY2024*: In FY2020, the figures were compiled on the day following the end of the
fiscal year (i.e. as of April 1 of the following fiscal year).

46

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

47

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Risk Management
Key philosophy

Risk management system and risk surveillance

The Group regards risks as “factors that could inhibit the achievement of business●We have established the Company-wide Risk Management Committee hosted
by the Chief Executive Officer (CEO), chaired by the director in charge of risk

risks associated with our business activities worldwide. We are establishing amanagement, and composed of directors and heads of administrative divisions

system based on the belief that it is also an important risk management activity

designated by the chairman. Based on business risks faced by business sites

to positively take advantage of these risks as opportunities to maximize returns.

and identified by each business unit and region, as well as management issues

With a director who supervises and promotes risk management from a company-

and business issues, we will formulate measures to resolve “global importantwide perspective, and a risk management division serving as the secretariat, therisks that should be addressed with the highest priority” extracted in light ofheads of Business Sectors, Group companies and the Administrative Division

their impact on business, urgency, and degree of incident, and designate an

take the lead in identifying risks to the Company proactively and regularly. In so

officer in charge of managing the relevant risks as the officer responsible fordoing, we understand risks in advance and consider rapid countermeasures in the

promoting countermeasures as a company-wide measure at the management

event of the realization of those risks in order to manage risks and opportunities

level.

Impact5

Urgency

Example of losses

Significant More than 1 billion yen

5Urgency

Response levelWithin 1 year

Long

Already taken measures

4

SeriousMore than 100 million yen

4Within 3 year

3Standard More than 10 million yen

× 3

Within 5 year

2

Minor

More than 1 million yen

2Within 10 year

Taken some measures

1

IgnoreLess than 1 million yen

1

Beyond 10 years

None

1

Mostly taken measures-

Taken measures to a certain extent

Mid-to-long Medium
2

3

Short

Urgent4

5Significant 5Countermeasure risks

1,7Serious 4 Monitoring risks

5,8

2,10,113,6

94Standard 3
Minor

2

Ignore 1

Recording risks

Monitoring risks

The officer responsible for promoting countermeasures implements a cycle■ Global important risks for the Group

Since FY2023, we have been strengthening our risk management system toto deploy and improve measures against “global important risks” to businessaddress climate change risks in line with the TCFD recommendations. Transition

units and regions and monitors progress as business initiatives to be achieved

The Company-wide Risk Management Committee, based on management issues and business issues, identifies global importantrisks ((1) and (7) in the table below) from addressed risks and formulates measures against them along with other addressed risks.

risks*1 and physical risks*2 arising from climate change issues are classified

during the current consolidated business year.

appropriately.

●

separately from general risks and assessed in terms of material issues, and●*1: Risks arising from the transition to a low-carbon societyof occurrence, and status of response, and formulate and implement*2: Risks arising from physical changes due to climate change

countermeasures. In addition, each division implements a cycle of monitoringand improving the progress of countermeasures.

Risk management led by management

Extraction of important risks
Extract risks that need to be addressed from acompany-wide perspective.

CEO

Measures for solving problems

Chairman : Risk Management Officer
Members : Executive Officers and general executives in administrative division, selected by the Chairman

Select persons in charge of solving problems from among themembers of the Company-wide Risk Management Committee.
They secure resources and develop, plan and implement measurers
for solving problems, support the activities at the business sites froma company-wide perspective, and share the progress and results ofsuch activities at the Company-wide Risk Management Committee.
■ Formulation of risk-related regulations■ Formulation of BCP (Business Continuity Plan) andtraining to establish the BCP■ Deliberation of matters relates to risk management■ Deliberation of important matters concerning risk management■ Responses to reports of abnormalities■ Maintenance of overseas safety management systems

Secretariat
Risk Management Office
Persons responsible for the important risks
The officer in charge of the relevant risk designated by the Chairman

Risk identification

Mobility & Telematics Services Sector

Risk assessment

Entertainment Solutions Sector

Risk response implementation
Interim monitoring

Domestic and overseas affiliates
Final review

JVCKENWOOD Integrated Report 2023

Disasters, etc.

Administrative Division, Head Office

Formulation of risk response measures

Reassessment of risks

Safety & Security Sector

Risk Surveillance Process

Risk surveillance implemented by all Group business sites around the world

Risk assessment

Countermeasures

Importantrisk

Take measures such as backing up development, securing multiple business partners, holding BCP inventory,
adopting general-purpose parts, and securing inventory through the use of intermediary agents, in orderto prevent sudden deterioration of cost and suspension of domestic and overseas production plants. In
particular, in response to shortages in the supply of semiconductors and other parts, take new measures
including stockpiling parts and continuing production and sales with designs alternative to problem parts.

Countermeasurerisk

Monitor changes and take measures according to the scale of risk
ranging from daily operational measures to contingency plans(3) Exchange rate fluctuation Serious Urgent Countermeasure risk

Implementation of hedging transactions such as exchange contracts

Countermeasure
risk

Revise the technology development and commercialization road map in a timely
manner, including changing market environments, social demands and technology
trends, and systematically develop engineering human resources and their skills

Medium- Countermeasure(5) Rapid evolution and
Seriousterm
transformation of the industry
risk

Promote development of proprietary products and services
and establish a position not affected by industry changes

Countermeasurerisk

Implement contingency plans in cooperation with affiliates and subsidiaries in eachcountry, regional economic organizations, authorities, lawyers, consultants, etc.

Importantrisk

Establish the JVCKENWOOD Central Incident Response Team/Coordination Center
under the control of the CISO (Chief Information Security Officer) to clarify theCompany’s security system in light of the government’s request to strengthen cybersecurity measures. Strengthen the security system to protect the Group’s information
assets and information assets entrusted by customers around the world andstakeholders including business partners, shareholders, and employees of the Group

SeriousMedium- Countermeasure
term
risk

Implement thorough checks to prevent quality problems by complying with the standards of eachprocess with an emphasis on quality in the processes of planning, development, and productionand establishing effective phase gates. Across the whole Company, promote product safetyassessments of new models, reinforcement of management of critical safety parts, reconstructionof the product safety management system (e.g., database of PL information), design assessmentsfor quality improvement and safety assurance, and company-wide sharing of know-how(9) Loss and shortageof human resourcesStandard

Shortterm

Countermeasure
risk

Secure diverse human resources through “expansion of recruitment of new graduates” and“diversified implementation of mid-career recruitment,” facilitate career development by
establishing the employee development system, and promote retention, appropriate age
structure and rebalancing of employees through synergies with workstyle reform(10) Business tie-up
with other companies

Serious

Shortterm

Countermeasure
risk

Risk analysis through business tie-ups, and sufficientexamination of potential synergies with the Group

Serious

Shortterm

Countermeasurerisk

Promote business continuity management including business continuity and early recovery
from disasters by establishing various manuals assuming crisis response, implementing disasterprevention drills, business continuity plan training, and safety confirmation drills in preparationfor emergencies, as well as rapid resumption of production, shipment, and services(1) Changes in supply
chain management

ImpactSignificant Urgent(2) Economic fluctuations
Seriousand changes in preferences(4) Technologicalinnovation(6) Overseas businessactivities

Urgency

ShorttermStandard Urgent

Serious Urgent(7) Information security Significant Urgent

Business operations

Company-wide Risk Management Committee

Changes in the business environment“business base risks” based on their impact on the business, frequency

Risk management system

Risk item

All the divisions in the Group implement annual risk surveillance to assessmanaged in an integrated manner with other risks.

●

48

Risks identified through risk surveillance are evaluated and mapped according to "Impact," "Urgency" and "Response Level"
and classified as follows.
Countermeasure risks: Risks to be avoided by developing a response implementation plan (see below table (1) to (11) )Monitoring risks: Risks to be deterred or transferred Recording risks: Risks to be retained

Impactplans” and works to minimize impact or damage by accurately identifying all■ Mapping by risk assessment and countermeasures(8) Quality problem(11) Natural disasters,
pandemics, and humandisasters

JVCKENWOOD Integrated Report 2023

49

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Foundation for Value Creation

Compliance

Stakeholder Engagement
The Group will deal proactively and honestly with diverse stakeholders to ensure sustainable business operations

Basic policy and promotion systems

and strengthen our corporate value.
We understand that compliance requires companies to go beyond simply
adhering to laws and regulations and to also address issues of great publicconcern stemming from rapid changes that have yet to be dealt with bylegislation. So, the Compliance Committee headed by the Chief Executive
Officer (CEO) and the Legal & Compliance Office took the lead in developing the

JVCKENWOOD Group Compliance Code of Conduct
Be committed to compliance and act with integrity and responsibility
Compliance Committee
Compliance officer

Legal & Compliance Office

Customers

JVCKENWOOD Group Compliance Code of Conduct. In order to achieve one
conduct guide stipulated in the Code of Conduct, “Strive for sincere, responsible
corporate behavior as our commitment to compliance,” we are taking thefollowing company-wide initiatives.
We also place importance on ensuring transparency in our corporate activities,

Education/Training/Survey
・E-learning
・Newcomer training
・Training by compliance officer
・Compliance survey

Communication opportunities and means

・Prompt and appropriate support
・Development of products that・Newspapers, magazines, TV
commercials, radio, social media

contribute to solving social issues
・Promotion of manufacturing
・Stable supply of products

Whistle-blowing system
・JVCKENWOOD Helpline（Legal & Compliance Office）
・Auditing Informer System（Audit & Supervisory Board Office）

・Websites
・Events and exhibitions
・Product catalogs
・Customer satisfaction surveys
・Reports

Improvement of understanding and trust ・Reports and request forms
・Collaboration to achieve sustainable
・Trade associations/committees

and will continue to disclose information, including donations to specific politicalparties and organizations (political donations made in FY2022: 0 yen).

procurement

Business
partners

Specific initiatives to promote compliance
The Compliance Committee looks into major incidents of noncompliance, such

The JVCKENWOOD Group Compliance Code of Conduct (established in Marchas bribery and corruption, and discusses measures to prevent their recurrence.

2010) has been promulgated among all executives and employees within

All incidents of misconduct, including bribery and corruption, are reported to

the Group through pamphlets (available in three languages) and an Intranet

the Board of Directors.

familiarized with the Code by Compliance Officers selected by the Board ofWhistle-blowing system

Directors.

The JVCKENWOOD Group has two whistle-blowing systems (a JVCKENWOOD
Helpline and an Auditing Informer System) for use by all executives andCompliance training

employees including contract employees anonymously.

Education on compliance is provided to inform all executives and employees

Any concerns about corporate ethics in general and compliance, such as humanincluding those of 39 Group companies in Japan and overseas on compliancerights violations, harassment, and corruption (embezzlement, bribery, etc.)

matters in order to construct a robust compliance structure. New employees

are directly reported to the JVCKENWOOD Helpline established in the Legal &are provided with training in face-to-face sessions while other employees

Compliance Office based on the Regulation for JVCKENWOOD Group Whistle-

are provided with regular training through e-learning. Compliance Officers

blowing system, and corrective measures will be taken under the leadershipconduct annual training for division heads under their direct supervision andof the Compliance Committee. Any concerns about misconduct by officers orother executives. The training is on the topics covered by the JVCKENWOOD

Helpline contacts such as violations of laws are reported directly to the Auditing

Group Compliance Code of Conduct and other related regulations as well as・Fair and equitable transactions
Communication opportunities and means
・Newspapers, magazines, professional
journals

・News releases, media relations
・Partners meetings
・Self-assessment questionnaires (SAQ)
・Procurement guidelines

・Websites, online memberships

JVCKENWOOD Group

Compliance Code of Conductsite. Employees at affiliate companies under the Group’s purview are being

Timely and appropriate information disclosure ・Financial results, financial results briefing
・IR/SR meetings
・Improvement of reputation as an investment
target company

Shareholders /Investors

・Appropriate return of profits
Communication opportunities and means
・Website
・General meeting of shareholders, shareholder

・News releases
・Integrated reports, annual securities reports,financial results presentation materials
・Responses and disclosures to ESG evaluation
organizations

newsletters

Inclusion・Websites
・Labor-management council meetings

・Respect for human rights
・Promotion of work-life balance

・Training programs, seminars, and e-learning
・Reports

・Occupational health and safety and healthpromotion

・Awards system (JK Award)
・Internal Reporting System

Informer System established in the Audit & Supervisory Board Office. Both・Fair evaluation
・Promoting Diversity & Inclusion

・Health and Safety Committee
・Enhancement of maternity, childcare, and nursing

on the prohibition against facilitation payments and bribery of foreign officials,

systems employ a dedicated communications system run by selected personnel

Communication opportunities and means

prevention of corruption, such as giving or accepting excessive gifts, corporate

to protect the whistle-blower’s name and maintain the confidentiality of thescandals and the whistle-blower system. In the event of violations of the Codereport. We will continue using both systems to detect and rectify compliance・Intranet, Company newsletter・Internal eventsof Conduct, corruption, or other violations of corporate ethics, we will promptly

violations (behaviors that deviate from social norms) as early as possible.

Pleasant working environment, Diversity &Employees

In order to check how far the awareness of compliance has been embedded in

The JVCKENWOOD Group Compliance Code of Conduct and its internal rules

the Company, we have been implementing an annual survey of Group company

state that the Company prohibits all forms of bribery and corruption and that

employees in Japan during e-learning since 2017. In 2022, 4,350 employees

no illegal or inappropriate means should be employed that may be used toresponded to the survey. Since the start of the survey, employees’ interest in

influence the actions of others. The Group complies with anti-corruption laws

compliance has increased over the years.

・Work style reforms, including remote working
・Employee satisfaction survey

・Websites
・Build good relationships of trust
・Local events
・Consideration for the environment, human rights, ・Factory tours, on-site classes, internships

Compliance survey
Anti-corruption initiatives

care support systems

Coexistence with local communities

take measures to prevent the recurrence of similar incidents.

50

Improvement of customer satisfaction

Government /Local Communities /NPOs and NGOs

and biodiversity
・Compliance with laws and regulations
・Contribution to local communities

・Industry associations
・Environmental protection and conservation
activities, environmental education

・Respect and protection of culture
・Disaster relief

・Participation in human rights events
・Donation of products related to disaster recovery

and regulations and prohibits bribery and inappropriate benefits such as gifts

Communication opportunities and means

・Employee participation in local volunteer activities

and entertainment that are contrary to laws, regulations, and social conventions.

・Newspapers, magazines, professional journals

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

51

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

External Directors Roundtable Discussion
Chairman and sets agenda while internal Representative Directors of the Board keep acertain distance. That way, External Directors of the Board can exercise restraint from theOutside directors
chairing themeeting will
stimulatediscussions

perspective of third parties.
Iwata: I agree. If an External Director of the Board serves as the Chairman of the Board,
discussions become frank, keeping a distance from the internal management team. I
am trying to create an atmosphere where it is easy to talk so that everyone can speak asmuch as possible, and over the past six years, the number of speeches has increased, andI feel discussions are getting better.
Onitsuka: On the other hand, a challenge for the Board of Directors of JVCKENWOOD

Chairman ofNomination andRemuneration Advisory
Committee

Chairman of the Board
Nomination andRemuneration Advisory
Committee member

Yuji Hamasaki

Shinjiro Iwata

Board of JVCKENWOOD.

is to ensure the diversity of its members. The current composition of External Directors

Hamasaki: I agree. I expect the Company to dig up issues from the advice only Externalof the Board is skewed toward those from the manufacturing industry. So, following

Directors of the Board can think of and provide.

discussions by the Nomination and Remuneration Advisory Committee and theSo, we need to understand the Company in terms of business, strategy, performance,development of a skills matrix, we invited one External Director of the Board with aand field activities. It is important for us to understand the current situation and express

background in a non-manufacturing industry in June 2023. Nevertheless, I am still theappropriate opinions while maintaining a certain distance from the Company. As part ofonly female Director of the Board. I would like you to consider increasing female directors

such efforts, off-site meetings are held separately from the Board of Directors meetings.

in the future. In addition, there are currently no Directors of the Board with foreign

As a result, I have heard that discussions at the Board of Directors meetings have become

nationality. This is an urgent issue for a global company, and I hope for more active

Nomination andRemuneration Advisory
Committee member

more active than before.

efforts to work on recruiting and educating foreign employees.

Iwata: Previously, only the Chairman of the Board had been briefed in advance and

Iwata: Following the success stories of other companies, I have proposed including theHiromi Onitsuka

finalized the agendas for Board of Directors meetings. But since then, other External

CEO in the Nomination and Remuneration Advisory Committee. Depending on the topic,

Directors of the Board have also been invited to participate in briefings as much as

it can be productive to ask the CEO’s intentions or ideas. When it comes to the method

possible. This has enabled the sharing of information with External Directors of the Board

to select External Directors of the Board, it used to rely heavily on the President’s personal

prior to the Board of Directors meetings and facilitated their understanding of it, resulting

connections in the past, but I believe we can now search for candidates using a skill

in more active discussions at the Board of Directors meetings. The efficiency of meetings

matrix that combines skills and knowledge necessary for JVCKENWOOD. In addition, in

has also been improved by narrowing down and categorizing agenda items by genre andorder to increase the proportion of External Directors of the Board, the quota of Directors

Enhance the quality of management through extensive experience and insightpriority based on matters pointed out by External Audit & Supervisory Board Members inof the Board has been increased, and the term of office of External Directors of the Board

I received an offer for the position of External Director of the Board, I felt candid andaddition to External Directors of the Board.

has been set to six to eight years, as we proposed.

sincere integrity from Directors’ explanation and had an impression that the Company

Hamasaki: I believe that the Board of Directors of JVCKENWOOD is highly effective

Hamasaki: The expansion of the quota of External Directors of the Board and their areas

was trustworthy and had room for growth. I also had a positive feeling about the boldbeyond a certain level. There are opportunities to hear the status of execution in additionof expertise is a significant achievement of the Nomination and Remuneration Advisory

Iwata: I accepted the offer for the position of External Director of the Board ofbanner of “Change for Growth.”

to the Board of Directors meetings, which have led to more active discussions andCommittee. In addition, we have adopted STI (short-term incentive) and LTI (long-term

JVCKENWOOD because the former President had just assumed office and was actively

Iwata: From the management integration in 2008 until today, JVCKENWOOD has

enhanced effectiveness, I believe.

incentive) for the remuneration system. Since their operation has just started, we will

engaged in management, and I wanted to cooperate with him. Also, I had a friendly

seemingly faced various challenges such as consolidating the differences in corporate

What matters is the long-term perspective. The medium-term management plan is forfurther deepen discussion and improve them.

feeling toward the Company, as the first stereo I bought was a TRIO* product.

culture, attitudes toward manufacturing, and systems between Victor and Kenwood.

three years, but transformation and growth will not be completed within that period*The then trademark of KENWOOD

Under such circumstances, the perspective of a manager who makes top-downalone. The accumulation of planning, execution, and review has solidified the foundation

Hamasaki: When I was a student, KENWOOD was the star audio brand. Like Director

decisions and the perspective of another type of manager who organizes and develops

for management and raised expectations for long-term growth. I think JVCKENWOOD is

Iwata, I was asked by the former President four years ago, and I accepted the offer forthem steadily, that is, the skill and execution of the management team with diverseat that stage right now.

the position of External Director of the Board because I sympathized with his positive

perspectives and ideas, have resulted in the characteristics of JVCKENWOOD today.

Onitsuka: Another responsibility of External Directors of the Board is to contribute toOnitsuka: We were able to achieve the targets of the previous medium-termsustainable growth and medium- to long-term improvement of corporate value. The

management plan “VISION 2023” one year ahead of schedule. I believe this is theBoard of Directors meetings of JVCKENWOOD used to discuss reporting items a lot, but

result of efforts by all employees and executives. I was not involved in the formulation

JVCKENWOOD from the perspective of External Directors of
the Board

thoughts on management.
Onitsuka: Like you two, I felt attached to the brands KENWOOD and Victor. When

Roles of External Directors of the Board, the structure andeffectiveness of the Board of Directors

Changes within the Company revealed by the formulation of
the New medium-term management plan

recently agenda items on growth strategies from a medium- to long-term perspective
have increased, and in FY2022, the number was about 3 times more than the previous

Infusing theworld's currents
from outside thecompany

52

JVCKENWOOD Integrated Report 2023

Hamasaki: I believe that one role of External Directors of the Board is to infuse global

year. I believe that this is largely due to the efforts of executives based on the assessment

trends from outside the company. The Company has experts who are familiar with theof effectiveness.

industry and business, but the organizations have duties, chains of command, and human

At JVCKENWOOD, an External Director of the Board serves as the Chairman of therelations. It may be difficult for internal people alone to create a new atmosphere.

Board. I feel that the neutrality of the Chairman has led to frank and lively discussions.

Onitsuka: The responsibility of External Directors of the Board is to engage inHamasaki: I also agree that it is advantageous for an External Director of the Board

management from the perspective of the outside including a variety of stakeholders. In

to serve as the Chairman of the Board. I think one possible structure of the Board

my case, I think I am also expected to provide opinions as the first female Director of theof Directors meetings would be that an External Director of the Board serves as theConstant discussion
on long-term
management
strategies forsustainable growth

JVCKENWOOD Integrated Report 2023

53

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

External Directors Roundtable Discussion

Message from Audit & Supervisory Board Membersof the previous medium-term management plan, but when the new medium-term

sheet. The New medium-term management plan clearly states that “We maximize

management plan “VISION 2025” was developed, I received an explanation about thecorporate value to achieve a P/B ratio above 1.0 taking into account the optimization ofreview of the previous medium-term management plan, approaches and strategies fromthe business portfolio with an emphasis on capital costs and the shareholder return,” andthe management team, and I fed back my opinions. Specifically, I proposed that thesets respective targets. We should further discuss these indicators.

explanation to the inside and outside of the Company about strategic investments inHamasaki: I agree. We will implement the New medium-term management plan andgrowth in the previous medium-term management plan was insufficient and that theincrease corporate value to achieve the major goal of “Make a leap forward to become

acceleration of growth, strategies, and measures be shared with employees, in otheran excellent company with both strength and toughness.” In this process, we shouldwords, the content of the plan should enable employees to think of dreams and be

improve P/B ratio and other indicators.

explained adequately.

I believe that JVCKENWOOD has the potential to do great work by leveraging its unique

I frequently remind members of human capital, especially about diversity and promotion

strength of becoming an interface between people and networks. Based on this strength,

including women, and we are beginning to see the results of our efforts, such as awe must transform the business portfolio and business strategies to meet the trends offemale director, as an employee position, selected from managers who developed their

the times. I think the whole Company should be listening to discussions at the Board ofcareers only within the Company.

Directors meetings and to align the vectors.

Hamasaki: The business environment has been quite severe for the past few years,

Onitsuka: We should also face human capital straightforwardly and improve employee

including changes in society amid the COVID-19 pandemic, disruptions in theengagement.

international community and economy caused by the invasion of Ukraine, problems in

We contribute to improving corporate value as a team
Audit & Supervisory Board Member

Masaki Imai

External Audit & Supervisory Board Member

Katsumi Saito

External Audit & Supervisory Board Member

Katsumi Kurihara

External Audit & Supervisory Board Member

Tetsuya Fujioka

The origin of the word “audit” is the Latin word “auditus,” which has thethe company’s contribution to society and its medium-term growth strategies, insame etymology as that of “audio,” closely related to the Company. The word

addition to being deeply involved in discussions on governance and compliance.

stemmed from “listening” or “hearing.” “Listening,” instead of “talking,” may

The Company announced the new medium-term management plan “VISIONbe perceived as passive, and in general, you might think that auditors have a2025” in April 2023. Through visiting audits to business sectors, administrative

Iwata: To that end, we should focus more on human resource education. Directors ofprimary role of discouraging or putting the brakes on discussions among

divisions and Group companies, which is one of our important tasks, we as

the procurement of semiconductors and other parts, and exchange rate fluctuations. But

the Board and Executive Officers need to broaden their connections through external

Directors of the Board and Executive Officers only when necessary.

auditors check the understanding of "VISION 2025," involvement of each

JVCKENWOOD has dealt with them appropriately, continuing to perform well in the fiscal

educational institutions and deepen their knowledge as leaders.

According to the Code of Audit & Supervisory Board Member Auditing Standards

division and company, and challenges in achieving it. Auditors also share risks andyear ended March 2023. In particular, it is great that the Safety & Security Sector, which

External Directors of the Board will continue to make recommendations and proposals

issued by the Japan Audit & Supervisory Board Members Association, the duties

awareness of problems held by each division and company. We interview as many

supports the foundation of society, performed very well. I think it is the fruit of various

from various perspectives so that the Company can become the excellent company thatof auditors include “by auditing the directors’ performance of their duties as

staff members as possible, in addition to representatives, so that we can hearchallenges within the Company, rather than accumulated accidents. Now that we have a

it aims to become in the long-term vision.

an independent organization entrusted by the shareholders, (auditors) arevoices closer to business practice. We also further strengthen cooperation withlarge portfolio base, we can see growth potential.

responsible for establishing a good corporate governance system through which

External Directors of the Board, the Internal Audit Division, and the Accounting

Iwata: Indeed, new ideas and daily efforts of employees are bearing fruit in many

the company and its corporate group will [...] achieve sound and sustainable

Auditor through regular meetings.

growth [...] and accommodate society’s trust.” Modern auditors are required

As the auditor team, we do not only “listen,” but also actively raise questions andnot only to strengthen corporate governance but also to contribute to theparticipate in discussions as necessary, and we would thereby like to be auditors

improvement of corporate value. Auditors are also compelled to be involved in

who contribute to the improvement of corporate value.

situations. It was also as proposed by executives that the year 2025 be set as the targetof the New medium-term management plan. The proposal was made after detailed
verification and analysis of revenue businesses, growth businesses, new businesses, andrestructured businesses.
Furthermore, while the previous medium-term management plan mentioned little
about TCFD, the New medium-term management plan involved challenging discussions

External Director of the Board

Yuji Hirako

A message from our investors

to disclose information beyond the scope of TCFD. I am sure that such attitudes andapproaches will affect our business performance.
I also believe that these internal changes are due in large part to the execution ability ofthe top management. For example, in the past, we did not have an internal Director of
the Board in charge of technology. But when an External Director of the Board proposed
the assignment, top management responded quickly. In addition, we made activities foranalyzing and organizing the manufacturing processes of the plants by acquiring outside
professionals who seemed qualified. These steady efforts have led to cost reduction andincreased corporate value.

15th Ordinary General Meeting of Shareholders held on June 23,

Executive ESG Analyst
Investment Div.
Stewardship Group
Asset Management One Co., Ltd

2023. I greatly sympathize with the corporate philosophy added
to the Articles of Incorporation, “Creating excitement and peaceof mind for the people of the world.” Since I am from a non-

Mr. Megumi Sakuramoto

manufacturing industry, there are many things I am unfamiliarwith. But I will deepen my understanding of JVCKENWOOD and

As ESG has attracted attention and ESG items that are required to be disclosed

and effective management.

of assimilating to the Company. In addition, based on my own

have increased rapidly, it seems that many companies regard ESG measures,

In order to strongly promote sustainability-oriented management in the future,

belief obtained from my experience, “the truth lies in the field,”which should originally be merely tools, as objectives. In such a market

however, I feel that a challenge is to incorporate the thinking of backcasting,

I will pay close attention to employee engagement in line withenvironment, JVCKENWOOD launched its new medium-term management

which reasons backward from the view on the future market, into corporate

Onitsuka: The New medium-term management plan has been launched, and discussions

local, actual, and real conditions, and monitor how much theplan “VISION 2025.”

strategy.

on long-term management strategies, including the business portfolio after the end of

corporate philosophy has been embedded in the Company. And

As an investor, I have a good feeling about the pursuit of CSV through further

At present, the recovery to a P/B ratio of 1.0x has become an urgent issue, andthe plan, should be held constantly. Sustainable growth of a company requires always

I will strive to contribute to steady implementation of the newpromotion of sustainability-oriented management based on both “profitable

it is essential to steer management with a sense of speed toward the recovery

anticipating what the company should be 10 years ahead and tackling new challenges.

medium-term management plan “VISION 2025” in order togrowth” and “solving social issues on a global scale” mentioned in theof the growth trajectory. Promoting management with a clear awareness of

In addition, while we have been focusing on figures related to profit and loss such as

realize the basic strategy, “Change for Growth.”

plan. I also highly appreciate the establishment of the system through thethe future market will be essential. I also look forward to the active use of

establishment of the Sustainability Committee, which will lead to more rapid

marketing strategies to enhance corporate value through ESG measures.

Make a leap forward to become an excellent company withboth strength and toughness

net sales and core operating income, we should also pay close attention to the balance54

I was recently elected as an External Director of the Board at the

JVCKENWOOD Integrated Report 2023

try to speak from a different perspective and viewpoint, instead

JVCKENWOOD Integrated Report 2023

55

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Corporate Governance
The Company believes that one of its most important management issues is to increase the transparency and efficiency
of its management decision-making process and improve corporate value by strengthening corporate governance. To thisend, we make it a basic policy to enhance our corporate governance through the establishment of a structure that calls for“the separation of management from the execution of businesses,” “the appointment of External Directors of the Board
and External Audit & Supervisory Board Members,” and “the improvement of the function of checking by establishing an
Internal Audit Division,” thereby strengthening the Company’s internal control system on a Group-wide basis.
KPI

Theme

FY2023

FY2025

FY2030◦Improve deliberation◦Trainings, off-site meetings, etc. for external
directors

・Further transfer of authorization to the execution ・Strengthening the Group・Increase the ratio of externalside (revision of the agenda standards)
governancedirectors
・Arranging the agenda for the Board of Directors ・Enhancement of the diversity ・Include in the achievement of ESG
meetingsof the skills of directors
targets into directors’ compensation

Strengthening diversity

Appointing one or more female Appointing three or more Aim to achieve a ratio of female
executive officers
female executive officers executive officers of over 30%

Overview of the corporate governance system
1. Reasons for adopting the Executive Officer system in the form of a company
with an Audit & Supervisory Board framework as the corporate governance system

2. Matters concerning the Board of Directors
Since June 2016, the Company has appointed an Independent External Director independent fromand neutral to the management of the Company as the Chairman of the Board of Directors, andestablished a place for active exchange of opinions and discussions at meetings of the Board of
Directors. Currently, Mr.Shinjiro Iwata, who serves as External Director of the Board, chairs the Boardof Directors (as of June 23, 2023). The Chairman of the Board determines agendas for meetingsof the Board of Directors in consultation with the Chief Executive Officer (CEO) and the Executive
Officer in charge of Administrative Division, etc., prior to deliberations of the Board of Directors. In
addition, the CEO is responsible for convening meetings of the Board of Directors and preparing
minutes of meetings of the Board of Directors, etc., as the Representative Director of the Board.

The Company’s basic corporate governance policy is that it “separates management fromthe execution of operations,” “recruits External Directors of the Board and External Audit &Supervisory Board Members,” and “improves the function of acting as a check by establishing
the Internal Audit Division.” The Company has concluded that in order to effectively implement
the policy, the most effective corporate governance system is to adopt the organizational
structure of a company with an Audit & Supervisory Board framework and to introduce an
Executive Officer System. This would enable institutions within the Company to collaborate
with each other. For that purpose, we have established a management system as follows.
●

3. Matters concerning the Audit & Supervisory Board
The Company adopts a company with an Audit & Supervisory Board
framework as its organizational structure. Auditors are responsible forthe corporate audit function, and their duties include attending Boardof Directors’ meetings and other important meetings, as well as
holding Audit & Supervisory Board meetings, auditing the executionof duties by Directors of the Board and the business execution of theentire Group, and corporate accounting. The Audit & Supervisory
Board holds meetings once a month, and extra meetings as needed.

4. Matters concerning the Nomination and Remuneration Advisory Committee
The Company established the Nomination and Remuneration
Advisory Committee, for which all of its External Directors of theBoard serve as committee members, in December 2015, with the aimof strengthening the independence and objectivity of the functionsof the Board of Directors. In addition, in April 2019, the Company
added the CEO to members of the Nomination and Remuneration
Advisory Committee in order for External Directors of the Board who
serve as committee members to share accurate internal information ina timely manner and to improve the effectiveness of the Nomination
and Remuneration Advisory Committee. The Nomination andRemuneration Advisory Committee has made proposals to the Boardof Directors regarding candidates for CEO for the Company, andreviewed the appropriateness of director candidates and directors’compensation plans proposed by the representatives and others, andreported its opinions. The Board of Directors has determined director

candidates and directors’ compensation, taking into consideration
the opinions stated by the Nomination and Remuneration Advisory
Committee.

5. Matters concerning the Executive Officer System
The Board of Directors, in order to lead the Company’s initiatives incorporate reform and governance, is chaired by an External Director of
the Board, holds discussions between External Directors of the Board as
independent directors and Directors of the Board concurrently serving as
Executive Officers to make highly transparent decisions, and entrusts thebusiness execution to Executive Officers. In accordance with decisions
made at meetings of the Board of Directors, the CEO, serving as the
Chairman, takes the lead in the Executive Officers Committee’s meetings.
Each of the Executive Officers is in charge of the Mobility & Telematics
Services Sector, Safety & Security Sector, or Entertainment Solutions Sector
or serves as General Executive of the Business Division in those sectors
while being in charge of the DX Business Development Division, which
continues growing in the other sector, and assumes responsibility for theoverall operations of all businesses in the three regions, the Americas,
EMEA (Europe, Middle East, and Africa), and APAC (Asia Pacific) as thehead of overseas, or China as the COO, and thus their responsibilities areclarified in both businesses and regions. Furthermore, we introduced an
execution system under which each Executive Officer is appointed to thepositions of the Chief Financial Officer (CFO), Chief Technology Officer(CTO) or Chief Information Security Officer (CISO) or is in charge of eachcorporate division to support the CEO, and performs their duties.

■ Skill matrix

The following is a summary of the areas of expertise and skills expected of management in order to resolve management issues of
the Company, achieve the improvement of medium- to long-term corporate value, and ensure diversity and balance in the Board of
Directors.

Diagram of the corporate governance system

Directors of the Board

General Meeting of Shareholders
Appointment
and dismissal
Four Audit & Supervisory Board Members

Audit & Supervisory Board

Accounting Auditor

ReportAppointment
and dismissal

Appointment
and dismissal

Audit /
reportBoard of Directors

Advisory

Ten Directors of the Board

ReportReportNomination and Remuneration
Advisory Committee
Five Members

Internal
Governance GroupInternal governanceCorporate
Audit Office

Operational audit

Share and collaborate on audit information
Supervision, appointment/dismissal

ReportReportYears ofserviceNameCompliance Committee

Sustainability Committee

Shinjiro Iwata

Male Non-executive External Independent
Chairman of the Board

Shoichiro Eguchi

Male Executive

Masao Nomura

Male Executive

Masatoshi Miyamoto

Male Executive

Akira Suzuki

Male

Naokazu Kurihara

Male

Yoshio Sonoda

Male

6

Expected areas ofexpertise

SkillsNomination andRemuneration
Corporate
Overseas business Manufacturing andAdvisory Committee management International business technology, R&D

IT
DigitalFinance andM&As

IT
DigitalFinance andM&As

Corporate management,
telecommunications

12 years
in total Corporate Strategy, marketing

5

ICT*, business growth strategy

Finance and accounting,business management
3 Technology development,
Executive
supply chain
7 years Human resources,
Executive
in total risk management
4 Intellectual property,
Executive
research and development
4 Corporate management,
Non-executive External Independent
technology development

6

Yuji Hamasaki

Male

Hiromi Onitsuka

Female Non-executive External Independent

2

Business management, diversity

Yuji Hirako

Male Non-executive External Independent-

Corporate management,
business management

Chairman*: Information and Communication Technology

Executive Committee

President and Chief
Executive Officer (CEO)ReportEnterprise Risk
Management Conference
PL Conference

15 Executive Officers (six officers concurrently serve on Board of Directors)
Accounting audit

Audit

Control/orderInternal governanceOperational audit

Business operational organization (including affiliated companies)

56

JVCKENWOOD Integrated Report 2023

Audit & Supervisory Board Members
Years ofservice

Name
Masaki Imai

Male Full-time

3

Katsumi Saito

Male Part-time External Independent

3

Katsumi Kurihara

Male Part-time External Independent

3

Tetsuya Fujioka

Male Part-time External Independent

2

Expected areas ofexpertise
Management audits,
production management
Corporate planning, legal,risk management
Technical development,
quality control
Finance and accounting,accounting audits

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

JVCKENWOOD Integrated Report 2023

57

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Corporate GovernanceInitiatives to improve the effectiveness of the Board of Directors■ Issues identified in the evaluation of the effectiveness of the Board of Directors
Fiscal year

FY2020 (Sixth)

FY2021 (Seventh)

Directortraining▶Providing group training
twice within the fiscal year
*Mid-term business plan
*Succession plan

▶Providing group training
twice within the fiscal year
*Progress of the corporate
governance reform*SDGs and ESG investments

1. Overview of evaluation of effectivenessIn the evaluation of the effectiveness of the Board of Directors carried out in January 2023, we arranged interviews with each Director of theBoard and Auditor, in addition to their self-evaluations, to improve the quality of the evaluation.
Persons subject to evaluation Directors of the Board and Auditors
Evaluation method

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

Contents of self-evaluationand questionnaires

Proposed evaluation items were created in light of the appropriate roles of the Board of Directors of the Company and its functional
enhancement. Then the questionnaire was prepared taking into account opinions of an outside expert, which is a third-party organization,and based on the analysis and consideration of factors such as the internal and external environment surrounding the Company

Substantial
and in-depth
discussion◦Securing time for
substantial and indepth discussion◦Identificationof items to be
discussed

Diversity◦Challenges indiversity measures

Issuespoints of improvement compared with last year are as below.
(1) The Chairman of the Board of Directors, who is an External Director of the Board, manages the agenda in an appropriate
and fair manner, creating an equal and cooperative atmosphere in which all Directors, both inside and outside the Company,
actively participate in the proceedings(2) A sincere attitude toward the evaluation of the effectiveness of the Board of Directors, and toward improvement based on the
results of the evaluation(3) Arrangement of the agenda for the Board of Directors meetings (reduction of reporting items and categorization of the agenda)

Developmentof successors

As a measure to improve the effectiveness of the Board of Directors in the future, we examine the results of this evaluation from theperspectives of Internal Directors of the Board, External Directors of the Board, and Auditors, identify measures to be taken by the
Board of Directors in the future, and discuss their results with the Board of Directors, in order to work on the improvement of theeffectiveness. We are also addressing issues identified in the past as shown in the table on the right page.

Stock-based remuneration system for officers
The Company has an established method for determining the amounts of remuneration for Directors of the Board based on the internal rules
resolved by the Board of Directors’ meetings and with reports from the Nomination and Remuneration Advisory Committee. In 2021, theCompany introduced a stock-based remuneration system for officers with a three-tier structure, which consists of fixed remuneration, shortterm incentive (STI*1) and medium- and long-term incentive (LTI”2), each of which has been clearly defined.
●

Overview of the stock-based remuneration system for officers
Remuneration system(1) Fixed remuneration(1) Fixed remuneration and (2) STI are paid within the limit of remuneration for Directors of the Board (432 million yen a year). (3) LTI is paid separately.
◦The amount of remuneration prescribed in the Company’s internal rules is paid according to the position (President, Deputy President, Senior Management Executive Officer,
Managing Executive Officer, etc.) and job title (authority of representation, Chairman of the Board, Nomination and Remuneration Advisory Committee Member, etc.).
◦Fixed remuneration is paid in monetary form as monthly remuneration.
◦Paid as bonuses to reflect the current results in the current year.

◦The amount of a fixed percentage calculated from the monthly remuneration shall be the amount of calculation base.
(2) Short-term incentive (STI)(3) Medium- and longterm incentive (LTI)

58▶Providing group training fivetimes within the fiscal year
◦The Board of Directors’*TCFD
discussion and selection of*Cyber security*Amendment of the Companies Act
training programs for the year
*AI
*Future outlook of economy and finance▶Holding off-site meetings three◦Further transfer of authorization to the execution
times within the fiscal yearside (revision of the agenda standards)*Initiatives for new businesses*Supply chain management reform ◦Arranging the agenda for the Board of Directors
meetings◦Securing deliberation*Human capital*Reducing time spent for reporting matters
time by reducing and*Workstyle reform*Periodic comprehensive reporting by Directors
simplifying reporting*Performance and the midof the Board concurrently serving as Executive
items
term business plan
Officers◦Revision of the◦Securing substantial deliberation*Setting up a place for discussing agendas at theagenda standards,
time by further reducing and
Board of Directors meetings
including the scope
simplifying reporting items*Adding the “Discussion” category to the agendaof transfer of◦Revision of the agenda standardsof the Board of Directors meetings
authorization to thefor transfer of authorization to◦Utilization of off-site meetings
execution side
the execution side――▶Periodic reporting of PMI*3 ▶Periodic reporting of PMI ▶Periodic reporting of PMI of
Evaluation of
investment projectsof investment projectsof investment projects
investment projects―

New issues▶Periodic reporting of PMI ofinvestment projects

Enhancing the PDCA of the ▶Discussion on the formulation of◦PCDA cycle of the mid-term
mid-term business plan andthe new medium-term managementbusiness plan
discussions from a mediumplan “VISION 2025” from ato long-term perspective
medium- to long-term perspective ◦IR/SR, etc.

*3: Post Merger Integration

Record of the operation of the Board of Directors
In FY2021, reporting items and proposals regarding risk management relatively increased due to increased risks in business operations caused by the spreadof novel coronavirus infection.
In FY2022, proposals for resolution increased compared with FY2021 due to deliberation on the formulation of the new medium-term management plan
“VISION 2025” because it was expected that various measures for the previous medium-term management plan “VISION 2023” would be implemented
and that “VISION 2023” would be achieved one year ahead of schedule.
Based on the results of the evaluation of the effectiveness of the Board of Directors, the Company is proceeding with further operational reforms of the Boardof Directors and is working to secure substantial deliberation time by, for example, reducing time allocated to reporting items in FY2023.
In order to ensure the transparency of the deliberation process at the Board of Directors meetings of the Company, we disclose the following informationon the agenda of the Board of Directors meetings.
●

Allocation of Resolutions and Reporting Agenda Items (number of items)●

Allocation by agenda category (number of items)
100%

100%

11.9%

Resolutions

43.4%

21.4%

59.1%

2.5%

2.3%
4.5%

7.6%
28.0%

OthersRisk management
Organization &Human resources
Medium-term vision

12.6%◦The employee stock ownership plan (ESOP) is adopted for LTI.

◦Shares are granted to corporate officers at the time of their resignation.

31.1%

Governance

22.6%

26.5%

Budget & Accounts

FY2021

FY202228.9%◦Points (shares) are granted according to the position, etc.

◦The ratio of fixed remuneration to STI to LTI has been determined to be 79:15:6 at a meeting of the Board of Directors. (Ratio changed from FY2023)◦Developing successors withdiversity in mind

▶Meeting with management,▶Meeting with management,◦Explanation of agenda items by attendants at the▶Meeting with managementand Executive Officers at the
Executive Officers and some
Executive Officers, and someBoard of Directors meeting (not Director of theNomination and Remuneration
female senior officers at thefemale senior officers at theBoard) as the succession to the next generation
Advisory Committee meetings
Nomination and Remuneration
Nomination and Remuneration ◦Periodical reporting and information sharing on
to consider candidates for
Advisory Committee meetings to
Advisory Committee to consider
the activities of the Nomination and Remuneration
succession
consider candidates for succession
candidates for succession
Advisory Committee

Reports

56.6%◦External Directors of the Board and Non-executive Directors of the Board are not eligible for LTI payment.

Remarks*1: Short Term Incentive◦The amount to be paid is determined within the range of 0% (no payment) to 200% (double the amount of the calculation base)of the calculation base amount and is paid in cash according to the annual performance (profit, capital efficiency index, etc.).
◦KPI of the STI are set according to each Executive Officer’s mission from six indicators: Revenue, ROIC (return on invested
capital), core operating income, profit, free cash flow, and year-end inventory targets.

Initiatives in FY2023 and beyond▶︎Holding off-site
meetings seven times
within the fiscal year

2. Summary of the results of evaluation on effectiveness and measures against issues
It was concluded that the Company as a whole has achieved a satisfactory level of effectiveness. Strengths of the Company and

FY2022 (Eighth)

40.9%
0%

0%

FY2021

FY2022*2: Long Term Incentive

JVCKENWOOD Integrated Report 2023

JVCKENWOOD Integrated Report 2023

59

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Foundation for Value Creation

Directors, Corporate Auditors & Executive Officers
Directors of the Board

Awards & Recognitions(As of October 1, 2023)(As of October 5, 2023)

Directors marked with * also serve as executive officers.

Evaluations from ESG rating agencies

Shinjiro Iwata

Shoichiro Eguchi*

Masao Nomura*

Masatoshi Miyamoto*

Akira Suzuki*

External Director of the Board, Chairman of
the Board, Nomination and Remuneration
Advisory Committee Member

Representative Director of the Board,
President and CEO, Nomination andRemuneration Advisory Committee Member

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

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

Director of the Board, Senior Managing Executive
Officer, COO Safety & Security Sector, In charge of
Supply Chain Management Reform

Management Surveys in Japan

Concurrent Position:
External Director of AIST Solutions, Inc.

Selected for the
ESG Index"FTSE Blossom
Japan Index"*1
Naokazu Kurihara*

Yoshio Sonoda*

Yuji Hamasaki

Hiromi Onitsuka

Yuji Hirako

Director of the Board,
Managing Executive Officer,
Head of Administrative Division

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

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

External Director of the Board,
Nomination and Remuneration
Advisory Committee Member

External Director of the Board,
Nomination and Remuneration
Advisory Committee Member

Concurrent Position:
External Director of the Board of Tokyo
Electron Device Limited

Concurrent Position:
・Member of the Board, Vice
Chairman of ANA HOLDINGS INC.
・External Director, Seven Bank, Ltd.

Selected for the
ESG Index "FTSE
Blossom Japan Sector
Relative Index*2

The 4th Nikkei SDGs
Management Survey
3.5 stars

The 6th Nikkei Smart
Work Management
Survey 3.5 stars

Certifications in Japan

Internet IR

Commendation
Award

Audit & Supervisory Board Members

2022

Masaki Imai

Katsumi Saito

Katsumi Kurihara

Tetsuya Fujioka

Audit & Supervisory Board
MemberExternal Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

Concurrent Position:
External Director of the Boardof CHUCHIKU

Concurrent Position:
External Director of NIPPONANTENNA Co.,Ltd.

Executive Officers

Received a
Commendation Award in
the Daiwa IR's Internet
IR Award 2022 for the
fourth consecutive year

Received the Best Website
Award in the overall categoryof Nikko IR's "All Japanese
Listed Companies' Website
Ranking 2022"

Product Awards

Shinichi Takada

Akihiko Terada

Kazuyoshi Hayashi

Osamu Muraoka

Naoki Sekiya

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

Managing Executive Officer,
COO China

Managing Executive Officer, Assistant to
Head of Administrative Division, General
Manager of Corporate Strategy Department,
In charge of New Business Development

Executive Officer, In charge ofOverseas Areas, General
Executive of Overseas Business
Marketing Division

Executive Officer, General
Executive of Domestic Business
Marketing Division

Hatsuhiko Iwasaki

Katsuya Sato

Hiroaki Kamata

Hisakazu Harada

Executive Officer, COO Entertainment
Solutions Sector, General Executive ofMedia Business Division, Entertainment
Solutions Sector

Executive Officer, General Executive ofCommunications Systems Division,
Safety & Security Sector, Assistant to
COO Safety & Security Sector

Executive Officer, General Executive of
Telematics Service Division, Mobility &Telematics Services Sector, General Manager
of DX Business Development Department

Executive Officer, General Manager of
Healthcare Business Division, Safety &Security Sector, Assistant to COO
Safety & Security Sector

For more information, please visit our website.

https://www.jvckenwood.com/en/corporate/management.html

60

Received a recognition
Renewed for theas a "Sports Yell
"Resilience Certification"
Company" by the Sports
by Association forAgency for the second
Resilience Japan for theconsecutive year
third time

JVCKENWOOD Integrated Report 2023

Awards by professionalmagazines in Japan
D-ILA projector "DLA-V90R"
and other productsInternational Design ExcellenceAward 2023 finalist
Tri-band compatible P25 digital radio"VP8000"

GOOD DESIGN GOLD AWARD(Minister of Economy, Trade and Industry Award)
Portable power station using recycled
Nissan LEAF battery products*1 FTSE Russell confirms that JVCKENWOOD has been independently assessed according to the index criteria, and has satisfied the requirements tobecome a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index isdesigned to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom
Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.
*2 FTSE Russell confirms that JVCKENWOOD has been independently assessed according to the index criteria, and has satisfied the requirements tobecome a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety ofmarket participants to create and assess responsible investment funds and other products.

JVCKENWOOD Integrated Report 2023

61

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Data Section

Financial Highlights
Revenue(million yen)

Non-Financial Highlights
Operating profit & Core operating income*1

Profit attributable to owners of the parent company

Cumulative sales of car navigation/display
audio systems (since business integration in FY2008)(million yen)(million yen)

(10,000 units)

Operating profit

Core operating income

336,910273,609(since market entry in FY2014)

7,473(10,000 units)

1,946

727

1,831

574

1,507
9,054

(since business integration in FY2008)

856

1,616

15,836

Cumulative sales volume of professional radio systems(10,000 units)

1,765

16,22921,634

282,088

Cumulative sales of dashcams

1,732

5,873

7,144

4,893
2,154
3/2021

3/2022

3/2023

Total assets/Total equity
Total assets

3/2022

3/2023

Ratio of equity attributable to owners of the parent company*2 (%)
Equity attributable to owners of the parent company per share*3 (yen)Ratio of equity attributable to owners of the parent company
Equity attributable to owners of the parent company per share

299,355

280,807

264,326(million yen)

Total equity

3/202128.3

3/2021

3/2022

3/2021

3/20233/2022CO₂ emissions*14 (Scope1+2)

EPS (Earnings Per Share)*4
99.27

38

36

3/2022

3/2023

Water consumption*14(thousand tons)

（yen）

33.0

3/2021

3/20233/2021

3/2022

3/2023

Waste generated*14 (per unit sales)(thousand tons)

204

193

34

(kg/million yen)

5.6

177

5.2

5.3

3/20233/2021

3/2022604.39486.2624.5
394.33
68,5233/2021

3/202213.14

3/2023

Interest-bearing debt*5 (million yen)/Net debt*6(million yen)/
Net debt-to-equity ratio*7(times)
Interest-bearing debt

0.25

Net debt

0.27

Net debt-to-equity ratio

3/2021

3/2022

3/2023

Dividend(yen), Dividend payout ratio(%)/Total return ratio（%)
Ordinary dividend

Special dividend

Dividend payout ratio/Total return ratio

38.0

62,482

69,83875,58735.89

103,731

83,96136.8*87

3/2021

3/2022

ROE*9 (Ratio of profit attribute to owners of the parent company)
ROIC*10 (Return On Invested Capital) /ROA*11 (Return on Asset)
ROE

ROIC

0.06

4.2

3/2023

EBITDA*12(million yen), EBITDA margin（%)
EBITDA

3/2021

3/2022

3/2023

Capital investment*13/Depreciation expense/R&D expenses

42,273
12.5

27,5033/2021

Capitalinvestment
Depreciation
expense10.1

3/2022

10,268 12,354 11,426

19,316 17,120 17,615

R&D expenses
3/2022

15,720 15,871 17,379

Number of employees (consolidated and non-consolidated)

3/2022(persons)

3/20233/2021

3/2022

3/2023

Male

13

14

31

Consolidated

16,956

16,585

16,277

Female51012Non-consolidated

3,292

3,179

3,130

Average number of days of annual paid leave taken (non-consolidated)

Average years of service (non-consolidated)(days/person)(years)3/2021

3/2022

3/20233/2021

3/2022

3/2023

10.6

12.2

15.7

23.4

24.3

24.8

3/2022

3/20233/2021

3/2022

3/2023

Annual total actual working hours (non-consolidated)
3/2021

3/2022

3/2023

Cash flow fromoperating activities

35,8297,059

26,607

Cash flow frominvesting activities-11,804-9,804-7,329Cash flow fromfinancing activities-5,342 -11,273 -14,032
24,024-2,744

19,278

Revenue composition by region (FYE3/2023)

Production ratio by region (FYE3/2023)(hours/person)

3/2021

3/2022

1,872

3/2023

1,890

1,893

Japan

Others

2%
Asia/
China

（%）

3/2022

3/2023

Consolidated

12.1

11.4

11.4

Non-consolidated

5.0

5.6

5.5

4%

Europe9%18%

Ratio of female managers (consolidated/non-consolidated)
3/2021Japan

Others15%38%Europe

18%

China

37%

35%

24%
AmericasSoutheast Asia

3/2023*1: Calculated by deducting cost of sales, selling and general administrative expenses from revenue, and does not include otherincome, other expenses, and foreign exchange gains and losses, which are nonrecurring items that mainly occur temporarily.
*2: Total equity attributable to owners of the parent ÷ Total liabilities and equity x 100*3: Total equity attributable to owners of the parent ÷Number of outstanding shares62

3/2021128

3/2023(persons)

146(million yen)Free cash flow

Number of career hires (non-consolidated)

5.6

Cash flow

3/20239.7

3/2021

3/2021

3/2022

2.2(million yen)

EBITDA margin

27,5794.0

3/2021(thousand tons)

8.3

3.6
0.8

3/2022

Plastic usage for containers and packaging*15

102
8.1

6,296
3/202118.2（%）

3/2023

5
16.7

15,942ROA

3/20226
5

21,131

3/2021

3/2023

JVCKENWOOD Integrated Report 2023

*4: Total equity attributable to owners of the parent ÷Number of outstanding shares (average for the period)*5: Lease liabilities are not included.
*6: Interest-bearing debt - Cash and cash equivalents at end of period*7: Net debt ÷ Shareholders' equity*8: Total return ratio from FY2022 (FYE3/2023). Total return ratio to net income attributable to owners of the parent for FY2022.
*9：Net income attributable to owners of the parent ÷ Average equity attributable to owners of the parent during the period x 100*10: (Core operating income after tax + Equity profit and loss) ÷ (Shareholders' equity + Debt) x 100*11: Net income attributable to owners of the parent ÷ Total assets x 100*12: Profit before tax + Interest expenses + Depreciation expenses + Impairment losses*13: Tangible fixed assets only
*14: Includes domestic business sites, domestic affiliated company sites that are separate from the main body of the company,
and overseas production sites*15: Includes only consumer products

JVCKENWOOD Integrated Report 2023

63

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Corporate History
JVCKENWOOD Group will provide products and solutions that create "excitement" and "peace of mind" by adding a design management
to the Group's strengths in audio, visual, and communication, which the company has cultivated over its nearly 100-year history.

1946-

1962

1991

2011

Launched the TW-30, theindustry’s first transistor
amplifier at the time

Official supplier contract with McLaren F1 Team
Developed and began to supply wireless radio systems
for the McLaren F1 Team’s exclusive use

Launched the MDV-727DT, firstgeneration Saisoku-Navi devices
that achieved high resolution andhigh-speed response

1946

1986

Established as
Kasuga Radio Co., Ltd.

Renamed Kenwood Corporation

1960
Renamed as
Trio Electronics, Inc..

1957

1980
Entered the car audio field in the U.S.
and launched the KENWOOD
brand car audio in Japan

2021

Launched the NX-5000 series, the NEXEDGE
series digital radio systems compliant withboth the NXDN™ and P25 standards

Launched the DLA-V90R, the world's first 8K D-ILA
home projector that supports 8K60p input at the time

2013

2022

Launched the DLA-VS4800, theworld’s first mass-production
model of the professional-use
D-ILA projector, which features
an 8K high-definition display at
the time

Jointly developed with Nissan Motor Co.,
Ltd. and 4R Energy Corporation a portable
power station using recycled batteries fromelectric vehicles

2014
Launched the KNA-DR300,
our first dashcam

2005
Technical and capital alliancewith Icom Inc. to jointly research
the standardization of technicalspecifications for digital wirelessradio equipment

Began exporting the
FM-100, FM tuner
for the first time
as a Japanesemanufacturer

1978

2004

Entered the professional radio equipment
field in Japan

VictorCompany ofJapan, Limited

2014

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

Kenwood
Corporation

2008-

2017

2023

Developed"EXOFIELD,"out-ofhead localization sound fieldprocessing technology

Developed a dustproof andwaterproof connected-type
dashcam (mobility cam)

XP-EXT1 wireless theatersystem with EXOFIELD

JVCKENWOOD
Corporation
1986
Launched the GR-C7,
the world’s smallest
and lightest VHS-C
video camera at the time

1939

1972
Established Victor MusicalIndustries, Inc.
(now JVCKENWOOD Victor
Entertainment Corporation)

1927
Established Victor Talking
Machine Company of Japan,
Limited192764

JVCKENWOOD Integrated Report 2023

2016

1995

Produced the first TV receiver inJapan at the time

1958
Launched Japan's firststereo LP and stereo set
STL-1S at the time2023

Established JVCKENWOOD Public& Industrial Systems Corporation

Launched the GR-DV1,
the world’s first pocket-sized
digital camcorder at the time

2011

2003

Renamed JVCKENWOOD
Corporation

Launched the EX-A1,
compact home stereo component system

Began shipping the VP8000,
a tri-band P25 digital radio
for professional use, from the
Yamagata factory to the North
American public safety market

2014
Acquired EF Johnson Technologies, Inc. as a wholly
owned subsidiary, which is engaged in professional
radio systems compliant with the P25 digital radio
standard for North America

2022
Moved from the First Section of the Tokyo
Stock Exchange to the Prime Market

1976

2022

Launched the HR-3300, theworld’s first VHS recorder

Received order from Delaware County,
Pennsylvania, U.S.A., for P25 professional
digital radio system

2008
2007
Launched "Everio" GZ-HD7, the world’s first full HD
hard disk camcorder for consumers at the time

JVC and Kenwood established the joint holding
company JVC KENWOOD Holdings, Inc. through astock transfer (JVCKENWOOD’s shares were listedon the First Section of the Tokyo Stock Exchange)

2019
JVCKENWOOD’s connected-type dashcams adopted by Mitsui Sumitomo
Insurance and Aioi Nissay Dowa Insurance for the automotive insurance withdashcam

JVCKENWOOD Integrated Report 2023

65

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Domestic and International Network（As of October 1, 2023）● JVCKENWOOD U.K. Limited● JVCKENWOOD Europe B.V.

● JVCKENWOOD Deutschland GmbH● JVCKENWOOD Trading (Shanghai) Co., Ltd.

● Rein Medical GmbH

● Ningbo Ask Automotive Sound And Communication Co., Ltd.

Domestic Bases● ASK Poland Sp. z o.o.

● Business Centers/R&D Facilities
Name

Location

Head Office & Yokohama Yokohama, Kanagawa
Business Center
Hachioji Business Center Hachioji, Tokyo
Hakusan Business Center Yokohama, Kanagawa
Kurihama Business Center Yokosuka, Kanagawa● Major Production Bases and Production
Companies
Base/Company

Location

Kurihama Business Center

Yokosuka, Kanagawa

Yokosuka Business Center Yokosuka, Kanagawa● JVCKENWOOD Canada Inc.

JVCKENWOOD Yamagata Corporation Tsuruoka, Yamagata
JVCKENWOOD Nagano Corporation Ina, Nagano● EF Johnson Technologies, Inc.

JVCKENWOOD Nagaoka Corporation Nagaoka, Niigata● JVCKENWOOD USA Corporation● JVCKENWOOD (Thailand) Co., Ltd.
● JVCKENWOOD Optical Electronics (Thailand) Co., Ltd.
● JVCKENWOOD Latin America, S.A.

● JVCKENWOOD Malaysia Sdn. Bhd.
● JVCKENWOOD Electronics Malaysia Sdn. Bhd.
● JVCKENWOOD Singapore Pte. Ltd.

● JVCKENWOOD

Hong Kong
Holdings Limited● Sales&Marketing Base ● Production Base ● Major Affiliated Company● PT JVCKENWOOD Indonesia● PT JVCKENWOOD Electronics Indonesia● JVCKENWOOD Italia S.p.A.
● ASK Industries S.p.A.
● Radio Activity S.r.l.

● JVCKENWOOD Australia Pty. Ltd.

● JVCKENWOOD Gulf Fze● Domestic Bases and Major Affiliated Companies
Name

Location

Name

Location

JVCKENWOOD Creative Media Corporation
JVCKENWOOD Victor Entertainment Corporation
JVCKENWOOD Video Tech Corporation
JVCKENWOOD Public & Industrial Systems Corporation

Yokosuka, Kanagawa
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Yokohama, Kanagawa

JVCKENWOOD Service Corporation
JVCKENWOOD Partners Corporation
JVCKENWOOD Engineering Corporation
JVCKENWOOD Design Corporation

Yokosuka, Kanagawa
Yokohama, Kanagawa
Yokohama, Kanagawa

Head Office & Yokohama Business Center Hachioji Business Center

Hakusan Business Center

Kurihama Business Center

JVCKENWOOD Yamagata Corporation JVCKENWOOD Nagano Corporation JVCKENWOOD Nagaoka Corporation JVCKENWOOD Victor
Entertainment Corporation

66

JVCKENWOOD Integrated Report 2023

Setagaya-ku, Tokyo● Major Overseas Bases

Yokosuka Business Center

JVCKENWOOD USA Corporation JVCKENWOOD Europe B.V.

JVCKENWOOD Singapore Pte.
Ltd.

JVCKENWOOD Hong Kong
Holdings Limited

Radio Activity S.r.l

JVCKENWOOD Design Corporation

JVCKENWOOD Optical
Electronics (Thailand) CO., Ltd.

PT JVCKENWOOD Electronics
Indonesia

EF Johnson Technologies, Inc.

ASK Industries S.p.A.

JVCKENWOOD Electronics
Malaysia Sdn. Bhd.

JVCKENWOOD Integrated Report 2023

67

Introduction

Message from Our CEO Value Creation Story Value Creation Strategy 1 Value Creation Strategy 2 Value Creation Strategy 3 Foundation for Value
New Medium-Term Management
Business Strategy
Sustainability Strategy
Creation

Data Section

Plan "VISION 2025"

Financial (IFRS)/Non-Financial Data

Company & Stock Information（As of March 31, 2023)(million yen)

FY2018(FYE3/2019)

FY2019(FYE3/2020)

FY2020(FYE3/2021)

FY2021(FYE3/2022)

FY2022(FYE3/2023)

Financial Data
P/L, cash flows, others (fiscal year)
307,627

291,304

273,609

282,088336,910

Operating profit

7,263

4,080

4,893

9,054

21,634

Profit before tax

6,401

2,877

4,533

8,515

21,161

Net income attributable to owners of the parent

3,847

954

2,154

5,873

16,229

Revenue

Capital investment (tangible fixed assets only)

8,700

11,837

10,26812,354

11,426

Depreciation expense

17,794

20,19919,316

17,12017,615

Research and development expenses

18,30917,445

15,72015,871

17,379Company Profile

Stock Information

Company Name

JVCKENWOOD Corporation

Ordinary General
Meeting of Shareholders

Held every June

Representative

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

Date of Incorporation

October 1, 2008

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

Capital13,645 million yen

Stock Exchange Listing

Prime Market of the Tokyo Stock Exchange

Security Code6632

16,277

Trading Unit

100 shares

Total Assets(Consolidated)299,355 million yen

Total Number of
Shares Issued

164,000,201 shares, including 516,992 shares*1

Number of Employees(Consolidated)

Cash flow from operating activities

20,98321,64235,8297,059

26,607

Cash flow from investing activities-25,768-19,675-11,804-9,804-7,329Equity (Consolidated)

103,731 million yen

Total Number of
Shareholders

48,133

Free cash flow

-4,785

1,966

24,024-2,744

19,278

Fiscal Year-End

March 31

Cash flow from financing activities

8,479-1,665-5,342-11,273-14,032

Shareholder Registry
Administrator

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

Head Office

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

Place for theRegistration

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

B/S (end of the fiscal year)
299,355

Total assets

250,617249,660

264,326

280,807

Cash and cash equivalents at end of year

40,84439,93359,644

48,70756,186

Total equity

65,321

59,99968,52383,961

103,731

Equity attributable to owners of the parent company

62,00956,48564,64579,49598,807Retained earnings

6,634

5,547

7,574

13,346

28,811

Interest-bearing debt*1

71,31274,60575,587

69,83862,482

Net debt

30,46834,671

15,942

21,131

6,296

Per Share Information
Basic earnings per share (EPS) (yen)

25.00

5.82

13.14

35.89

99.27

Equity attributable to owners of the parent company per share (yen)378.24344.55394.33486.26604.39

6.00

5.00

5.00

6.00

12.00

16.7%

*2

Dividend (yen) (base date basis)*2

Payout ratio (%)/Total return ratio (%)

24.0 %

85.9%

38.0%

36.8%

*1: Number of shares held in treasury: 62,792 shares
Number of shares held by the trust related to stock-based compensation: 454,200 shares

Shareholder Composition
Japanesecompanies

Treasury stock

2.13%

0.04%

Securities
companies

8.79%

26.75%

Shareholder
composition
ratio

THE BANK OF NEW YORK MELLON
1400402,864,200

1.75Interactive Brokers LLC

2,799,725

1.71

BCSL CLIENT RE BBPLC NYBR

2,623,921

1.60

UBS AG LONDON A/C IPB SEGREGATEDCLIENT ACCOUNT

2,420,289

1.48

5.6%

Operating profit margin (%)

2.4%

1.4%

1.8%

3.2%

6.4%

Foreigncompanies

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

24.7%

22.6%

24.5%

28.3%

33.0%

31.18%

8.8%

10.1%

9.7%

12.5%

2.9

2.7

2.5

1.5

55.5%

53.0%

54.5%

54.9%

61.8%

Overseas sales ratio (%)

Number of employees (non-consolidated) (persons)

3,109

3,300

3,292

3,179

3,130

148

0

0

0

0

Number of employees (consolidated) (persons)

16,93917,623

16,956

16,585

16,277

Average number of temporary employees(consolidated) (persons)

3,107

1,550

1,892

2,053

963

CO2 emissions (thousand tons)

49

42

38

36

34

Water usage (thousand tons)

285

256

204

193

177

Total waste (kg/million yen)*4

—

7.0

5.2

5.3

5.6

Average number of temporary employees(non-consolidated) (persons)*1: Interest-bearing debt does not include lease liabilities*2: Total return ratio in FY2022 (FYE3/2023)*3: Profit (loss) before tax + Interest expense + Depreciation expense + Impairment loss
*4: Basic unit per net sales

JVCKENWOOD Integrated Report 2023

*2: The ratio of capital contribution is calculated after deducting treasury stock(62,792 shares) from the total number of issued shares

Dividend and Total Shareholder Return*3

Non-Financial Data

68

1.77

18.2%

2.7

3.04

2,901,137

8.1%

8.5%

4,980,454

31.10%

2.2%

EBITDA Liability multiplier (times)

SBI Securities Co., Ltd.

1.99

3.6%

EBITDA margin (％)

7.08

J.P. Morgan International Finance
Limited

0.8%

42,273

11,606,400

2.43

1.6%

27,503Custody Bank of Japan, Ltd. (Trust
Account)

3,258,290

0.4%

27,57915.53

3,980,400

6.8%

25,53425,462,100

JP Morgan Chase Bank 385632

1.6%

26,076The Master Trust Bank of Japan, Ltd.
(Trust Account)

JPLLC-CL JPY

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

EBITDA (million yen)

Ratio ofshareholding (%)*2

Individuals
and others

Return on assets before tax (ROA) (%)*3

Number ofshares held

Name

Financial
institutions

Management Indicators

10 Major Shareholders

FYE3/’18

FYE3/’19

FYE3/’20

FYE3/’21

FYE3/’22

FYE3/’23

Share Price

(JPY)

355

268

195

220

178

381

Dividends

(JPY)

6

6

5

5

6

12

Accumulated Dividends (JPY)

6

11

16

22

34

Share Price + Accumulated Dividends (JPY)

274

206

236

200

415

Total Shareholder Return （%）

77.2

58.0

66.5

56.3

116.9

*3: (Share price at the end of each fiscal year + Accumulated amount of dividends per share from four fiscal years prior to the current fiscal year to eachfiscal year) / Share price at the end of five fiscal years prior to the current fiscal year

JVCKENWOOD Integrated Report 2023

69

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