Medium-term Plan and New Corporate Vision

 

TIDM35SV 
 
RNS Number : 8304M 
Pioneer Corporation 
01 June 2010 
 

 
 
 
For Immediate Release 
May 31, 2010 
          Pioneer Announces Medium-term Plan and New Corporate Vision 
Pioneer Corporation announced today its medium-term plan for the three years 
through fiscal 2013, ending March 31, 2013, and "2015 Vision," its new corporate 
vision for fiscal 2015, as follows: 
 
1. Medium-term Plan 
(1)Consolidated Business Plans 
Consolidated business plans through fiscal 2013 are as follows: 
+-------------------+-+------------+-+------------+-+------------+ 
|                   | |            | |      (In millions of yen) | 
+-------------------+-+------------+-+---------------------------+ 
|                   | |  Fiscal    | |  Fiscal    | |  Fiscal    | 
|                   | |    2011    | |    2012    | |    2013    | 
+-------------------+-+------------+-+------------+-+------------+ 
| Net sales         | | JPY480,000 | | JPY570,000 | | JPY630,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
| Operating income  | | JPY 17,000 | | JPY 27,000 | | JPY 30,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
| Net income        | | JPY 11,000 | | JPY 18,000 | | JPY 21,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
 
Net sales are expected to increase in each business category. In Car Electronics 
business, the net sales forecasts mainly reflect higher sales in the emerging 
markets and expansion of new business domains. In Home Electronics business, the 
net sales will mainly reflect increased sales from an optical disc business, and 
from introductions of new concept audio products. Pioneer plans a steady 
increase in operating income each fiscal year, reflecting the benefits of 
restructuring, an improvement in gross profit due to increased sales, and the 
implementation of cost-cutting initiatives and other measures. 
  We are assuming an average U.S. dollar-yen exchange rate of JPY90 and a 
euro-yen exchange rate of JPY120 for these plans. 
(2) Car Electronics Business 
+-------------------+-+------------+-+------------+-+------------+ 
|                   | |            | |      (In millions of yen) | 
+-------------------+-+------------+-+---------------------------+ 
|                   | |  Fiscal    | |  Fiscal    | |  Fiscal    | 
|                   | |    2011    | |    2012    | |    2013    | 
+-------------------+-+------------+-+------------+-+------------+ 
| Net sales         | | JPY277,000 | | JPY330,000 | | JPY354,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
| Operating income  | | JPY 14,000 | | JPY 18,500 | | JPY 20,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
 
In the consumer-market business, Pioneer first plans to expand sales by 
launching competitive products in the largest volume-zone in the market, in 
addition to the value-added market zone. As to car navigation systems, Pioneer 
also plans increases in sales. This reflects our development of car navigation 
systems in Japan for the replacement demand that will be generated by the 
termination of analog broadcasting in 2011, and our strengthening of the product 
lineup both in Japan and overseas, including PNDs (portable navigation devices). 
  Secondly, Pioneer plans to expand sales in emerging markets where significant 
growth is seen, by launching products that match the characteristics of each 
region. We will consider the use OEM to offer products in each market at 
adequate prices. We will build optimal sales frameworks in each region to expand 
our Car Electronics business in emerging markets. 
  Thirdly, we plan to establish new business models for the car navigation 
market by making full use of our strengths in map data, and the interfaces 
between vehicles and probe (vehicle driving) information. 
 
In the field of OEM, we plan to steadily expand business by further 
strengthening relationships with business partners, and by driving business 
expansion in growth markets, including through a joint venture with Shanghai 
Automotive Industry Corporation (Group), a major Chinese automaker. By further 
reducing costs, we also plan to expand business domains in the OEM field and 
improve profitability. 
(3)Home Electronics Business 
+-------------------+-+------------+-+------------+-+------------+ 
|                   | |            | |      (In millions of yen) | 
+-------------------+-+------------+-+---------------------------+ 
|                   | |  Fiscal    | |  Fiscal    | |  Fiscal    | 
|                   | |    2011    | |    2012    | |    2013    | 
+-------------------+-+------------+-+------------+-+------------+ 
| Net sales         | | JPY154,000 | | JPY185,000 | | JPY212,000 | 
+-------------------+-+------------+-+------------+-+------------+ 
| Operating income  | |       JPY0 | |  JPY 4,000 | |  JPY 5,500 | 
+-------------------+-+------------+-+------------+-+------------+ 
 
In Home Electronics business, after withdrawal from the display business in the 
previous fiscal year in line with the restructuring, Pioneer plans expanded 
sales and improved profitability by implementing various measures centered on 
home AV business, DJ equipment business and optical disc business. 
 
In home AV business, we plan to expand sales as we aim to capture the top market 
share of AV receivers primarily in Europe and North America. Specifically, we 
will differentiate products by incorporating new functions, increase the number 
of models through the use of OEM, and strengthen the business by rebuilding our 
marketing and sales frameworks. Also, we will develop new markets in the audio 
field by expanding iPod-ready products, and by launching and expanding the 
built-in home audio systems and multi AV systems. Moreover, we will expand 
business in emerging markets, for example, in China, through strategic alliance 
with Suning Appliance Co., Ltd., a major Chinese home electronics mass retailer. 
  With the DJ equipment business, we will increase sales by strengthening our 
response to the change of DJ styles using file music and PCs, by continuously 
launching top-position products on the market, and by increasing our market 
share in the BRICs and other emerging markets. Other initiatives to increase 
sales and profits include launching sound system products that leverage our 
strong position in the club market, and providing visual systems for clubs 
utilizing business-use visual transmission equipment. 
  In the optical disc business, we are forecasting significant growth for 
Blu-ray Disc markets for both home and PC use. We plan to expand sales of 
Blue-ray Disc-related products, especially by the early commercialization of 
products incorporating new standards and new technologies. 
(4)Growth Strategy 
Pioneer has formulated the following five initiatives to achieve its overall 
strategy for growth: 
 
1. Pursue every opportunity to significantly reduce costs 
2. Reinforce strategic alliances 
3. Expand businesses in emerging markets 
4. Establish new business models in car electronics: 
 providing new value 
based on "hardware/software + information services" 
5. Develop new businesses 
 
The fifth initiative above includes OLED (organic light emitting diode) 
lighting, one of our new businesses. In 2012, European countries will cease 
manufacturing incandescent light bulbs, which have low energy efficiency, and 
markets are giving attention to OLED lighting, which illuminates in an 
energy-saving and efficient manner without using mercury, in its capacity as 
environmentally-conscious next-generation lighting, together with LEDs. OLED 
lighting devices are thin and surface-emitting, and Pioneer believes that these 
characteristics will help OLED develop into a next-generation lighting 
technology that coexists with LED lighting. In February 2010, Pioneer formed a 
business alliance with Mitsubishi Chemical Corporation, and conducted production 
and supply of vapor deposition type OLED panel prototype which can be 
manufactured using currently available facilities, and jointly displayed at a 
trade fair held in Frankfurt in April. We plan to develop these devices for mass 
production during next year. With the aim of lowering manufacturing costs, we 
are considering the commercialization of coated type of OLED lighting devices 
through this joint development. 
  Pioneer is also developing a new business of the world's first speaker to 
employ HVT (Horizontal-Vertical Transforming) technology. This new technology 
converts the horizontal movement of the voice coil into vertical movement, 
thereby achieving a speaker that is both slimmer and lighter, with improved 
audio fidelity in the lower frequency range. The technology has already been put 
on the market in January this year as a Pioneer car speaker model. Going 
forward, we plan to use the speaker in built-in home audio systems and home 
theater systems. 
 
Through these measures, our growth strategy firstly includes a target of 
JPY100,000 million for fiscal 2015, ending March 31, 2015, for sales of all 
businesses in the Chinese market (JPY42,400 million for fiscal 2010). Secondly, 
our growth strategy includes a target of JPY100,000 million for fiscal 2015 for 
sales of our new businesses such as new business models in the Car Electronics 
business and of OLED lighting business. 
 
II.Corporate Vision for FY 2015 (2015 Vision) 
Pioneer has formulated "2015 Vision", its new corporate vision for fiscal 2015 
as follows: 
 
    Spread the smiles. 
 Feel the vibes. 
 Share the passion. 
 Pioneer 
                         engages you anytime, anywhere. 
 
The significance of our new corporate vision, 2015 Vision, is that it will guide 
the entire group to work together to transform Pioneer into the company we want 
it to be in fiscal 2015. 
- When we provide products and services, we will be sharing this value with our 
customers. 
- When we spread the smiles and share the passion, we will encourage our 
customers to feel the same way. 
- We at Pioneer will cooperate with each other to spread the smiles and share 
the passion. 
- Pioneer will achieve growth in tandem with the growth of our customers and of 
our employees. 
 
Pioneer is committed to ensure that every employee works together to make 
Pioneer into the type of company desired by our customers, business partners and 
society at large. 
 
Pioneer aspires to become a company that will "Spread the smiles, feel the vibes 
and share the passion" together with our customers. The entire Pioneer Group 
will steadily implement the Medium-term Plan to achieve 2015 Vision, which 
embodies our aspirations for Pioneer in fiscal 2015. 
 
Cautionary Statement with Respect to Forward-Looking Statements 
Statements made in this release with respect to our current plans, estimates, 
strategies and beliefs, and other statements that are not historical facts are 
forward-looking statements about our future performance. These statements are 
based on management's assumptions and beliefs in light of the information 
currently available to it. We caution that a number of important risks and 
uncertainties could cause actual results to differ materially from those 
discussed in the forward-looking statements, and therefore you should not place 
undue reliance on them. It is not our obligation to update or revise any 
forward-looking statements, whether as a result of new information, future 
events or otherwise. We disclaim any such obligation. Risks and uncertainties 
that might affect us include, but are not limited to: (i) general economic 
conditions in our markets, particularly levels of consumer spending, and levels 
of demand in the major industrial sectors which we serve; (ii) exchange rates, 
particularly between the Japanese yen and the euro, the U.S. dollar, and other 
currencies in which we make significant sales or in which our assets and 
liabilities are denominated; (iii) our ability to continuously design and 
develop and win acceptance for our products in extremely competitive markets; 
(iv) our ability to successfully implement our business strategies; (v) the 
success of our joint ventures, alliances and other business relationships with 
third parties; (vi) our ability to access funding; (vii) our continued ability 
to devote sufficient resources to research and development, and capital 
expenditure; (viii) our ability to ensure the quality of our products; and (ix) 
the outcome of contingencies. 
 
Pioneer Corporation is a leading global manufacturer of consumer- and 
business-use electronics products such as car electronics, audio and video 
products. Its shares are traded on the Tokyo Stock Exchange. 
 
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For further information, please contact: 
Investor Relations Department, Corporate Communications Division 
Pioneer Corporation, Japan 
Phone: [phone] / Fax: [phone] 
E-mail: [e-mail] 
IR Website: http://pioneer.jp/ir-e/ 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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