Pioneer Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of change (%) Factors
Sales 457,545 438,998 4.2 -
Net income 10,350 (58,276) - -
Car electronics business
Sales 255,252 251,060 1.7 -While sales of car navigation systems designed for retail sales recovered mainly in Japan, overall sales decreased because sales to the OEM markets in both Japan and China fell.
-Sales of car audio systems designed for retail sales increased mainly in North America and Europe, as did OEM sales in Japan and North America. As a result, overall sales grew, despite the decrease in OEM sales in China.
14,044 (7,274) - -

Business Partnership

-The Company has entered into an agreement with MicroVision Inc., Washington, of U.S. to jointly develop, manufacture and distribute projector modules including the RGB semiconductor laser light source module. Paying attention to the special features of high luminance and high contrast for RGB semiconductor laser light sources, the Company has explored uses for the Head-Up Display (HUD), which is currently under development by the company. By joining in a partnership with Microvision Inc. with its advanced technical strength in the development of projector engines using laser scan technology, it will be possible to quickly develop a commercial version of the projector module using the RGB semiconductor laser light source module. Pioneer is aiming to introduce a commercial in-vehicle HUD using this projector module into the consumer market during 2012. (From a press release on December 8, 2010)


-The Company announced on February 9 that it will establish a joint venture company in Brazil for production of optical parts with Asia Optical Co., Inc., a supplier of optical devices and cameras based in Taichung City, Taiwan. The new operations in Brazil are scheduled to begin in the first half of the fiscal year ending in March 2012. The optical parts made in Brazil will be also used in the car electronics products. The Company is manufacturing at its local subsidiary. Pioneer and Asia Optical already operate a joint venture business in China. (From an article in the Nikkan Jidosha Shimbun on February 10, 2011)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Medium-term Business Plan

Car Electronics OEM Business

(1) Further strengthening business ties with major customers
-Steadily and continually expanding business with Toyota and Honda.

(2) Increasing business in growing markets, starting with China.
-Responding to customer's expansion activities worldwide.
-Expanding both the car navigation business and telematcis business in China through the joint venture with Shanghai Automotive Industry Corporation.

(3) Expanding the scope of business sectors and improving profit margins through even further, successful cost-cutting measures.

-Expanding business in the compact-car sector through implementing initiatives designed to further reduce costs.
-Reducing R&D expenses by strengthening business collaboration with Mitsubishi Electric and enhancing R&D technical capabilities overseas.

-The Company announced its new mid-term business plan ending in March 2013. By fiscal year 2012, the final year of the project, the company aims to raise its sales to 630 billion, operating profit to 30 billion yen, and net profit to 21 billion yen. It intends to generate 354 billion yen in sales and 20 billion yen in operating profit at the car electronics division, its main business unit. In emerging markets especially countries such as India, China, and Brazil, the Company will drive its business expansion by developing and launching low-cost products which meet requirements from local customers. In the area of car OEM business, the company will work on winning more contracts in China and other growing markets, while bolstering its relationships with its existing customers worldwide. It also intends to develop new business solutions for the car navigation market. (From an article in the Nikkan Jidosha Shimbun on June. 2, 2010)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 33,040
35,977 54,790
Car electronics business 17,965
18,500 25,642

R&D Structure

-In order to strengthen the Car Electronics Business, the Company's core business sector, the Company is working on R&D activities to create new technology for next-generation vehicles and to pioneer leading-edge developments in head-up displays.

R&D Achievements

 -The Company announced on October 15 that it has developed a new system that can forecast more precisely the range of electric vehicles. By applying a function of estimating fuel consumption in the car navigation system, the new system is capable of calculating energy consumption and amount of electricity generated by the brake regenerative system based on driving data and battery capacity. By feeding such data and information into the original estimation formula, the system figures out the driving range of the vehicle. The Company has succeeded in holding the margin of error within 10 percent. Combined with information of the road map and traffic congestion, the technology will be able to offer precise information on the range, locations of charging facilities as well as timing for charging, which is expected to contribute to dissolving a problem of " battery run-out" involved with electric vehicles many drivers feel concerned about. (From an article in the Nikkan Jidosha Shimbun on October. 16, 2010)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 20,635
22,750 49,795
Car electronics business 14,062
14,615 29,774

New Facilities (Car electronics business)

(As of Mar. 31, 2011)

Name Location Type of facility Planned total investment amount
(in million JPY)
Starting month Planned completion
Kawagoe Plant Saitama,
Production facilities for car electronics products,
Sales of software
13,866 Apr.
Tohoku Pioneer Corp. Yamagata,
Production facilities for car electronics products 672 Apr.
Increment P Corp. Kanagawa,
Map soft etc. 2,000 Apr.
Pioneer Manufacturing
(Thailand) Co., Ltd.
Production facilities for car electronics products 1,424 Apr.
Pioneer Technology
(Shanghai) Co., Ltd.
Production facilities for car electronics products 611 Apr.
Pioneer Electronics (Shanghai Export Zone) Co., Ltd. Shanghai,
Production facilities for car electronics products 537 Apr.