Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Overall
Sales	498,051	451,841	10.2	-
Operating income	11,169	5,997	86.2	-
Ordinary income	5,111	812	529.4	-
Net income	531	(19,552)	-	-
Car electronics business
Sales	348,075	312,568	11.4	1)
Operating income	12,431	9,786	27.0	-

Factors
1) Sales by product
Car Navigation Systems
-Aftermarket sales decreased year-on-year due to a significant decline in Japan during the first half of the year. Sales to OEMs increased from the previous year especially in Japan and Latin America.

Car Audio
-Sales to OEMs increased from the previous year especially in China and North America. Sales to the aftermarket rose particularly in Europe and the Americas.

Business Plan

Entering into the head-up display market in Europe
-The Company will start sales of in-vehicle head-up displays (HUDs) in Europe. The Company will launch an HUD which can be linked to smartphone applications in October 2013. In 2012, 70% of HUDs were sold in Europe with further growth expected in both the European and global market. Therefore, Pioneer expects that its entry into the European market will boost its sales. Many European drivers already use navigation applications on their smartphones. The Company hopes to capitalize on this by promoting HUDs linked to smartphone applications in Europe, which can display direction indicators and lane changing information from the applications. (From an article in the Nikkan Jidosha Shimbun on September 11, 2013)

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 billion JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ending Mar. 31, 2016 (Target)
Sales	515.0	540.0
Operating income (Rate)	12.5 (2.4%)	20.0 (3.7%)
Net income	2.0	11.0

Outlook for FY ending Mar. 31, 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	515,000	498,051	3.4
-Car electronics	360,000	348,075	3.4
Operating income	12,500	11,169	11.9
Ordinary income	7,500	5,111	46.7
Net income	2,000	531	276.6

-In the fiscal year ending March 2015, sales at the car electronics division is expected to increase 3.4 percent year-on-year. This forecast is based on the following projections:  

• Japan: sales are expected to decrease year-on-year because sales of aftermarket navigation systems, especially portable types, are forecast to fall
• Overseas: sales are expected to increase year-on-year driven by projected growth in demand for car navigation systems both from the aftermarket and OEMs

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	26,891	33,671	34,590
-Car electronics	15,582	19,266	19,920

-The Company plans to invest JPY 27,000 million as R&D expenditure during FY ending March 2015.

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 in Tohoku Pioneer Corp.	Yamagata Pref., Japan
R&D Division, Pioneer China Holding Co., Ltd.	Beijing, China

Joint Development

OLED (organic light emitting diode) lighting module
-The Company and Mitsubishi Chemical Corporation announced that they have jointly developed the industry's first white OLED (organic light emitting diode) lighting module. The new module uses Mitsubishi Chemical's proprietary luminous coating material and method, and employs a new panel production technology jointly engineered with Pioneer. The introduction of these techniques has led to a significant reduction in production costs and major improvements in product life. Compared with existing OLED lighting modules which use vapor-deposition technology to form a luminous layer, the new module reduces production costs by 80-90 percent. Its service life will be four times longer than the conventional products. The new product is expected to become an environmentally friendly and cost-effective solution for automotive lighting and other applications. (From an article in the Nikkan Jidosha Shimbun on October 8, 2013)

Technology Licensing-in Agreement

(As of Mar. 31, 2014)

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 million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	22,135	24,089	26,975
-Car electronics	16,651	16,791	20,324

-In FY ended March 2014, the Company invested mainly in embedded software, dies and new production equipment.

-The Company plans to invest JPY 30,000 million as capital investment during FY ending March 2015.

Planned Capital Investments (Car electronics)

(As of Mar. 31, 2014)

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	23,254	Apr. 2014	Mar. 2015
Tohoku Pioneer Corp.	Yamagata Pref., Japan	Production facilities for car electronics products	455	Apr. 2014	Mar. 2015
Increment P Corp.	Kanagawa Pref., Japan	Map soft wares etc.	2,022	Apr. 2014	Mar. 2015
Pioneer Technology (Malaysia) Sdn. Bhd.	Johor, Malaysia	Production facilities for car electronics products Production facilities for home electronics products	441	Apr. 2014	Mar. 2015
Pioneer Manufacturing (Thailand) Co., Ltd.	Ayutthaya, Thailand	Production facilities for car electronics products	2,855	Apr. 2014	Mar. 2015
Tohoku Pioneer (Thailand) Co., Ltd.	Ayutthaya, Thailand	Production facilities for car electronics products	445	Apr. 2014	Mar. 2015
Tohoku Pioneer (Vietnam) Co., Ltd.	Haiphong, Vietnam	Production facilities for car electronics products	466	Apr. 2014	Mar. 2015
Shanghai Pioneer Speakers, Co., Ltd.	Shanghai, China	Production facilities for car electronics products	226	Apr. 2014	Mar. 2015
Pioneer Technology (Shanghai) Co., Ltd.	Shanghai, China	Production facilities for car electronics products	1,038	Apr. 2014	Mar. 2015
Pioneer Electronics (Shanghai Export Zone) Co., Ltd.	Shanghai, China	Production facilities for car electronics products	221	Apr. 2014	Mar. 2015
Pioneer do Brasil Ltda.	Manaus, Brazil	Production facilities for car electronics products	637	Apr. 2014	Mar. 2015