Pioneer Corporation Business Report FY2012
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | Rate of change (%) | Factors | |
Overall | ||||
Sales | 436,753 | 457,545 | (4.5) | -Although sales of car-navigation systems were strong, the Company was impacted by a greater number of negative factors. As a result, sales were lower year-on-year. Some of the negative factors were lower sales of products related to optical disk drives, lower sales of car-audio equipment because of the Great East Japan Earthquake and the flooding in Thailand, and the high evaluation of the yen against other currencies. |
Operating income | 12,514 | 15,817 | (20.9) | -In spite of two natural disasters that hindered parts procurement and forced the company to produce other products, the Company was still able to post an operating profit and a current period net profit for the second consecutive reporting period. This was possible due to the strong demand seen in automotive electronics and due to the initiatives the Company took to confront negative factors. |
Ordinary income | 9,863 | 12,331 | (20.0) | |
Net income | 3,670 | 10,350 | (64.5) | |
Car electronics business | ||||
Sales | 270,785 | 254,129 | 6.6 | 1) |
Operating income | 10,292 | 14,044 | (26.7) | - |
Factors
1)
Car Navigation Systems
-Performance in this sector was strong due to the launch of new products in Japan destined for the consumer market.
-This sector had robust sales of not only factory-installed products for the EOM market but also sales of products sold as optional-equipment to dealers.
Car Audio
-In the consumer market, the car-audio sector had disappointing results for the year because of lower sales in North America and Central/South America, in spite of higher sales volumes in Europe. The Company was confronted with lower production levels and supply shortages caused by the flooding in Thailand, and with the high evaluation of the yen against other currencies.
-The situation was similar in the OEM market, with lower revenues and sales due to the Great East Japan Earthquake and the flooding in Thailand.
-Car electronics sold to the OEM market account for around 43% of all sales of car electronics.
Recent Developments Outside Japan
-The Company has begun studies on reorganizing its global production structure in the aftermath of the Thai flooding, which caused significant damages to its local facility. The company is going to reduce its operation at the Rojana Industrial Park, Ayutthaya to 60 percent of the pre-disaster level, while transferring some operations to China, Malaysia and other emerging countries to cover the remaining 40 percent. (From an article in the Nikkan Jidosha Shimbun on February 14, 2012)-The Company will establish a new representative office Pioneer International Latin America, S.A. Sucursal Argentina in Buenos Aires, Argentina to strengthen its sales operations in Latin America. The new office will start its operations on February 2, 2012. (From a press release on January 31, 2012)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 34,590 | 33,040 | 35,977 |
Car electronics business | 19,920 | 17,965 | 18,500 |
R&D Activities
-The Company is conducting R&D activities with the objective of launching business in markets new to the Company. For example, the Company is speeding up its activities in order to start operations dealing with organic electro-luminescence (OEL) lighting, especially focusing on coating OEL devices. In addition, it is working on entering the medical-device sector, developing a small blood-flow sensor and a HEED-HARP camera.Product Development
-The Company has developed a prototype of the car electronics system for electric vehicles and the new system has been installed on the No.1 prototype model of the advance electric vehicle by SIM-Drive. The system allows not only the navigation, but also the audio and illumination systems in the cabin to be operated by a smartphone. Furthermore, organic electroluminescence modules are used in a head-up display under development by Pioneer and cabin illumination systems. (From a press release on May 18, 2011)Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 26,975 | 20,635 | 22,750 |
Car electronics business | 20,324 | 14,062 | 14,615 |
Planned Capital Investments (Car electronics business) |
(As of Mar. 31, 2012) |
Name | Location | Type of facility | Planned total investment amount (in million JPY) |
Starting month | Planned completion |
Kawagoe Plant | Saitama Pref., Japan |
Production facilities for car electronics products, Sales of software |
12,380 | Apr. 2012 |
Mar. 2013 |
Tohoku Pioneer Corp. | Yamagata Pref., Japan |
Production facilities for car electronics products | 685 | Apr. 2012 |
Mar. 2013 |
Increment P Corp. | Kanagawa Pref., Japan |
Map soft etc. | 2,444 | Apr. 2012 |
Mar. 2013 |
Pioneer Technology (Malaysia) Sdn. Bhd. |
Johor, Malaysia |
Production facilities for car electronics products | 390 | Apr. 2012 |
Mar. 2013 |
Pioneer Manufacturing (Thailand) Co., Ltd. |
Ayutthaya, Thailand |
Production facilities for car electronics products | 5,284 | Apr. 2011 |
Mar. 2013 |
Tohoku Pioneer (Thailand) Co., Ltd. |
Ayutthaya, Thailand |
Production facilities for car electronics products | 671 | Apr. 2012 |
Mar. 2013 |
Tohoku Pioneer (Vietnam) Co., Ltd. |
Haiphong City, Vietnam | Production facilities for car electronics products | 412 | Apr. 2012 |
Mar. 2013 |
Shanghai Pioneer Speakers, Co., Ltd. | Shanghai, China |
Production facilities for car electronics products | 459 | Apr. 2012 |
Mar. 2013 |
Pioneer Technology (Shanghai) Co., Ltd. |
Shanghai, China |
Production facilities for car electronics products | 1,467 | Apr. 2012 |
Mar. 2013 |
Pioneer Electronics (Shanghai Export Zone) Co., Ltd. | Shanghai, China |
Production facilities for car electronics products | 644 | Apr. 2012 |
Mar. 2013 |
Pioneer do Brazil Ltda. | Manaus, Brazil |
Production facilities for car electronics products | 368 | Apr. 2012 |
Mar. 2013 |