Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change (%)	Factors
Overall
Sales	451,841	436,753	3.5	-Although sales of optical disk drive products and aftermarket car navigation systems decreased, overall sales increased thanks to greater demand for car navigation systems from OEMs and growing sales of car audio devices for the aftermarket. The weaker yen also contributed to the sales increase.
Operating income	5,997	12,514	(52.1)	-Operating income decreased due to losses from negative currency translation and increases in sales expenses and administrative expenses. Higher sales-cost ratios also affected the income.
Ordinary income	812	9,863	(91.8)	-
Net income	(19,552)	3,670	-	-The Company posted an extraordinary loss due to large expenses incurred for making structural improvements.
Car electronics business
Sales	312,568	270,785	15.4	1)
Operating income	9,786	10,292	(4.9)	-

Factors
1)
Car Navigation Systems
- Sales in the Japanese aftermarket decreased due to the slowing economy.
- Sales to OEMs increased from last year thanks to growth in demand especially in Japan and North America.

Car Audio
- Sales to the aftermarket increased in various markets outside Japan.
- Sales to OEMs increased from last year thanks to growth in sales especially in North America, which was large enough to offset a decrease in Japan.

- Car electronics sold to the OEM market accounted for around 51 percent of all sales of car electronics. (The percentage was 43 percent in the year ended March 2012.)

New Company

-The Company announced that it has established Pioneer OLED Lighting Device to develop and produce organic electroluminescent panels. The new subsidiary is headquartered in Kawasaki City, Kanagawa Prefecture, while operating a plant on the premises of the Yonezawa Plant (Yonezawa City, Yamagata Prefecture) of Tohoku Pioneer Corporation (headquarters: Tendo City, Yamagata Prefecture), which manufactures organic electroluminescent panels. Engineers at Pioneer OLED Lighting Device will develop technology to form luminous layers in the coating process, which is expected to contribute to a significant cost saving in mass producing organic electroluminescent panels. (From an article in the Nikkan Jidosha Shimbun on Feb. 13, 2013)

Recent Developments Outside Japan

<Indonesia>
-The Company officially announced its plans to establish a liaison office in Indonesia in early October and to commence production of car audio systems at a local subcontractor in spring 2013. Starting with production for the aftermarket, the Company is planning to produce one million audio systems during the first year. It intends to increase production capacity incrementally to meet growing needs for localized products required by automakers, as well as to enhance sales for the aftermarket. Also, in tandem with the local subcontractor, the leading Japanese car audio manufacturer will step up marketing activities targeted at Japanese automakers. Furthermore, local production in Indonesia is meant to increase a competitive edge and strengthen the Company's foothold in Southeast Asia by dispersing risks from production concentrated in Thailand. (From an article in the Nikkan Jidosha Shimbun on Sep. 21, 2012)

Mid-term Business Plan (FY ending Mar. 31, 2014 - FY ending Mar. 31, 2016)

Car Electronics

Main Strategies	Measures
1. Transform the business model to create new value, reflecting change of the automotive market going forward	-Establish competitiveness in next-generation automotive equipment with vehicle information-linkage with Mitsubishi Electric. -Establish position in cloud-based information services for vehicle users with NTT DOCOMO.
2. Reduce costs significantly and enhance profitability through cost reduction measures	-Raise development and manufacturing efficiency with full-scale implementation of modular design. -Reduce costs by realigning and streamlining manufacturing sites in Japan and overseas. -Promote development efficiency through mutual utilization of resources with an alliance partner.
3. Increase sales through steady growth in both consumer-market and OEM business	-Consumer-market: Expand business by capturing actualized demand in major markets, and creating new demand and markets -OEM： Steadily expand business by strengthening relationships with major customers. -Pursue region-specific strategies in emerging markets to be suitable for each region's economic situation and market environment.

-Medium-Term Plan Target

(in 100 millions of JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ending Mar. 31, 2016 (Target)
Sales	5,150	5,400
Operating income (Rate)	150 (2.9%)	200 (3.7%)
Net income	60	110

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	515,000	451,841	14.0
Operating income	15,000	5,997	150.1
Ordinary income	10,000	812	1131.5
Net income	6,000	(19,552)	-

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	33,671	34,590	33,040
Car electronics	19,266	19,920	17,965

R&D Facilities

Name of Facility	Location
Research & Development Division/Verification Laboratory	Kanagawa Pref., Japan
Research & Development Division (Kofu)	Yamanashi Pref., Japan
Research & Development Division (Yonezawa）	Yamagata Pref., Japan
R&D Division, Pioneer China Holding Co., Ltd.	Beijing, China

Joint Develompent

-The Company and San-Eisha, Ltd. (headquarters: Tokyo) announced in January 2013 that they have jointly developed a standard, wired charger for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs). The Company has been primarily focusing on developing wireless charging technologies in the area of EV and PHV charging systems. By collaborating with San-Eisha, which manufactures and sells plug-in battery chargers, the Company will be able to acquire knowledge of installation and maintenance of battery chargers as well as market information about charging systems and parking areas. This will expand the company's EV/PHV business even further. (From an article in the Nikkan Jidosha Shimbun on Jan. 30, 2013)

Product Development

EL Lighting Module with Color and Brightness Control
-The Company announced that it is going to start delivery of its advanced organic electro luminescence (EL) lighting module with color and brightness control functions early October 2012. The new technology offers higher brightness and improved luminescent efficiency compared with the Company's existing technology, then the world's first organic EL system with a color tuning system. The existing organic EL lighting module has been mass-produced at Tohoku Pioneer Corporation in Yamagata Prefecture since July 2011. With use of a new luminescence material, the newly developed organic EL technology achieves a significantly high luminance of 2,000 cd/m2, which is double that of the existing organic EL providing 1,000 cd/m2. It also attains a luminescent efficiency of 51.6 lm/W, up 50 percent from the current 31 lm/W. In addition to a conventional 14cm2 type, the new technology offers a smaller 7cm2 type, allowing the product to be employed in in-vehicle lighting systems and other various products. (From an article in the Nikkan Jidosha Shimbun on Oct. 3, 2012)

Technology Licensing-in Agreement

(As of Mar. 31, 2013)

Company (Location)	Contract content	Period
Dolby Laboratories Licensing Corporation (USA)	Licensing-in of patented technology to produce digital sound devices and noise reduction devices.	December 21, 1971 - until the expiration of the patent
MPEG LA, L.L.C. (USA)	Licensing-in of patented technology to produce MPEG-2 video products	January 1, 1994 - December 31, 2015

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	24,089	26,975	20,635
Car electronics	16,791	20,324	14,062

- The Company invested mainly in embedded software, dies and new production equipment.

Planned Capital Investments (Car electronics)

(As of Mar. 31, 2013)

Name	Location	Type of facility	Planned total investment amount (in million of JPY)	Starting month	Planned completion
Kawagoe Plant	Saitama Pref., Japan	Production facilities for car electronics products, Software for sale	11,725	Apr. 2013	Mar. 2014
Tohoku Pioneer Corp.	Yamagata Pref., Japan	Production facilities for car electronics products	428	Apr. 2013	Mar. 2014
Increment P Corp.	Kanagawa Pref., Japan	Map softwares etc.	1,720	Apr. 2013	Mar. 2014
Pioneer Technology (Malaysia) Sdn. Bhd.	Johor, Malaysia	Production facilities for car electronics products	434	Apr. 2013	Mar. 2014
Pioneer Manufacturing (Thailand) Co., Ltd.	Ayutthaya, Thailand	Production facilities for car electronics products	2,512	Apr. 2013	Mar. 2014
Tohoku Pioneer (Thailand) Co., Ltd.	Ayutthaya, Thailand	Production facilities for car electronics products	271	Apr. 2013	Mar. 2014
Tohoku Pioneer (Vietnam) Co., Ltd.	Haiphong, Vietnam	Production facilities for car electronics products	452	Apr. 2013	Mar. 2014
Shanghai Pioneer Speakers, Co., Ltd.	Shanghai, China	Production facilities for car electronics products	376	Apr. 2013	Mar. 2014
Pioneer Technology (Shanghai) Co., Ltd.	Shanghai, China	Production facilities for car electronics products	959	Apr. 2013	Mar. 2014
Pioneer Electronics (Shanghai Export Zone) Co., Ltd.	Shanghai, China	Production facilities for car electronics products	733	Apr. 2013	Mar. 2014
Pioneer do Brasil Ltda.	Manaus, Brazil	Production facilities for car electronics products	600	Apr. 2013	Mar. 2014