By | /s/ Kaneo Ito | |||
Kaneo Ito | ||||
President and Representative Director | ||||
1. | The announcement released by the Company to the press in Japan dated December 8, 2005, concerning its business restructuring plans. | |
2. | The announcement released by the Company to the press in Japan dated December 8, 2005, concerning the application for delisting from three stock exchanges. | |
3. | The announcement released by the Company to the press in Japan dated December 8, 2005, concerning the partial amendments to its consolidated second-quarter and semiannual business results, and non-consolidated semiannual business results, for the periods ended September 30, 2005. |
1. | Reforms for the Entire Pioneer Group | ||
First of all, we will improve management efficiency through organizational restructuring. For the entire Company to operate optimally, we will dismantle the current internal company system as of January 1, 2006, and reorganize our Company into a two-department setup featuring the Home Entertainment Business Group and the Mobile Entertainment Business Group. All operations related to plasma displays, DVD products and home audio products will be integrated into the Home Entertainment Business Group. This setup will enable us to develop common platforms, products and functions across multiple product categories more swiftly and efficiently. Home Entertainment Business Group staff currently working at three locations will be consolidated at one location in Japan by around spring of 2007. This should increase productivity and encourage more effective inter-departmental integration. Dismantling the internal company system will help us to integrate some administrative and back office functions of the dismantled internal companies and centralize control from the head office to slim down our overall organization. Furthermore, our entire head office organization, particularly administrative and back office operations, will be reorganized by around April 2006. | |||
As part of our efforts to reduce fixed costs for the entire group, we are consolidating our worldwide production sites from 40 to about 30, and in this regard, cutting about 2,000 employees, mostly at overseas production sites. We will continue optimizing our production layouts. R&D ratios must also be reduced. Our Companys R&D expenses currently account for almost 8% of our consolidated net sales. We will try to lower the burden of R&D expenses by stepping up cooperation and alliances with other companies, thereby reducing the ratio of R&D expenses below 7%. Cost reduction will also apply to our overseas sales subsidiaries: we will continue to reexamine and reduce all expenses, including personnel costs. Furthermore, we will delist our shares from the New York Stock Exchange, Euronext Amsterdam and Osaka Securities Exchange, thereby reducing costs and clerical burdens. We will continue to list our shares on the Tokyo Stock Exchange. | |||
Next, we will review the number of our employees. In line with our plan for integrating home entertainment business operations while consolidating work sites and headquarters functions, we began discussions on December 1 with the labor union over plans to readjust our employment levels by about 600 personnel at the |
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employees of parent company as well as Pioneer Group companies in Japan, with the aim of reducing fixed costs on a consolidated basis by streamlining staffing. Labor and management are currently discussing pertinent details. | |||
Lastly, we will reduce the number of directors/executive officers and salary cutback. In line with consolidating and streamlining our organization, we will review roles and responsibilities of directors and executive officers based on new business structure. Compensation of directors/executive officers was cut in January, and again in October, with the overall reduction totaling some 20 to 25%. Also, we have been reducing managers salaries since November. | |||
2. | Restructuring of Display Businesses | ||
We intend to remain in the plasma display business, as such displays will continue to play a vital role in our home entertainment business. However, we intend to minimize dependence on our OEM operations, as such sales volume is liable to fluctuate sharply, being the main cause of this fiscal years poor performance. From now on, we will focus on selling finished Pioneer brand products. Accordingly, we will review our panel production capacity, and for production lines that we are stopping will remain suspended into fiscal year 2007. We may suspend even more line operations, in accordance with market demands. Impairment losses of production facilities are recognized in the first half of this fiscal year. By optimizing the balance of our output and sales volume, we will minimize our prospective losses from this business. By optimizing the balance of our output and cost reduction, we will endeavor to lower our deficit from this business. | |||
Plans for mass-producing active-matrix organic light-emitting diodes (OLEDs) will be discontinued, because we cannot anticipate profitability in this business. We will, however, continue R&D on active-matrix OLEDs, with the aim of benefiting from our patents related to them. We will withdraw from the thin film transistor (TFT) substrate business which Tohoku Pioneer Corporation had been carrying out under the joint venture ELDis, Inc. on the premise that ELDis has been dissolved. As for the passive-matrix display business, we will boost adoption of this display for use with our products, while at the same time propose new applications and focus on attracting new customers. | |||
3. | Future Business Plans Enhancing Profitability by Reorganizing Business Strategies | ||
Mobile Entertainment Business Strengthen business and expand profits | |||
In our mobile entertainment business, we must enhance and expand the below three areas. While we will do our best to improve the profitability of our mobile entertainment business, we shall view this fiscal years operating income as the bottom line. | |||
(1) Ensure profits by strengthening after-market car audio business | |||
After-market car audios are the foundation of our mobile entertainment business revenue. In the medium term, it is crucial for us to maintain a dominant share in this market. Compared with developed countries such as Japan, the United States and Europe, other regions as typified by BRICs Brazil, Russia, India and China show |
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strong growth. We will aggressively expand our sales in these developing markets, since Pioneer maintains a high brand image in these countries. In terms of products, more widespread music distribution and digital broadcasting will give us more ways to continue proposing new values, performances as only Pioneer can. We aim to raise Pioneers brand image, while steadily becoming more cost-competitive in order to secure high levels of profitability in coming years. | |||
(2) Expand after-market car navigation system business | |||
In Japan after-market of car navigation systems, we will firmly maintain our position as a top manufacturer enjoying the overwhelming support of customers. On the other hand, to expand future sales, we will aggressively develop overseas markets in which car navigation system ownership rates are still low. Overseas after-markets of car navigation systems, may finally be ready for a full-fledged launch. Overseas, Pioneer can use the same platforms that it developed for the domestic market by adapting them for local use, making product development more efficient and speedy. We will increase product variations to suit characteristics of each region, with the aim of expanding sales of overseas after-market car navigation systems. Recently, we have seen an increase in our investments in car navigation systems, particularly for software development. By promoting process reforms and shared development, we aim to enhance efficiency and profitability. | |||
(3) Expand the OEM business | |||
The OEM business is another pillar of our mobile entertainment business and we will strengthen programs to expand it. Specifically, we will reinforce business for expanding Japans car dealer option market. Moreover, in the assembly line genuine parts, we will expand our sales aggressively, and with respect to medium- and long-term projects, advanced development is already under way with multiple car manufacturers. We hope that these activities will drive sales for our mobile entertainment business. The growth of alliances with cars and on-road infrastructure may expand the car navigation market into the fields of ITS (Intelligent Transport Systems) and Telematics. As one of the top car electronics product manufacturers with its own hardware/software technologies, map of Japan content, and server business models, Pioneer aims to expand its business in these fields, focusing on the OEM business, with possibilities of business collaboration and tie-ups. | |||
Home Entertainment Business Reinforce business and improve profitability | |||
By integrating our plasma display, DVD and home audio business lines into the Home Entertainment Business Group, we will establish a setup across product categories and move toward the following goals with speed and efficiency: |
| Demonstrate the brand power | ||
| Create new values through integration and systematization | ||
| Develop common platforms | ||
| Standardize core processes |
At the same time, the advantages of integrating all our sites into one location will become more apparent, as core processes will be consolidated seamlessly from planning and development to sales and service. |
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(1) Efforts in plasma displays | |||
As mentioned above, we will downsize OEM operations. From here on, we will focus more on finished Pioneer brand products, whose sales have been growing steadily worldwide, and seek to recover profitability. | |||
Concerning our products, we will hone our advantages in high resolution panels, focusing on 50 inch full HD plasma displays with 1,920 x 1,080 pixels to be launched at an early stage next fiscal year. We will also reinforce collaboration with DVD recorders, AV amplifiers and speakers to innovate operation feasibility, product design, and sound field reproduction, introducing high quality home entertainment. By cutting fixed cost in this structural reform, and to set production capability in accordance with sales growth, we will rapidly reduce our deficit in this business. We project the plasma display market to rapidly grow in the high resolution XGA category, and that our business to recover its profitability even more in Fiscal 2008 ending March 31, 2008. | |||
(2) Efforts in optical discs | |||
In the DVD recorder business, prices of low-end products sold in Europe and the U.S. have been sharply falling. Therefore, we have already discontinued developing such low-end products on our own, and are concentrating our development resources on products featuring advanced technologies. In terms of LSIs and software development, we will aggressively promote tie-ups with other companies, introducing products quickly to the market, and push down development costs. Production of low-end DVD recorders and VCR-combo DVD recorders will be shifted to subcontractors, to improve profitability. | |||
As for recordable DVD drives for personal computers (PCs), we will focus on slim drives for notebook PCs to deliver high added value. We are shifting core development to drives for Blu-ray Discs, whose sales are expected to grow dramatically from here onward. | |||
We will continue to strengthen sales of DVD recorder drive units to non-Pioneer group companies. In the current fiscal year, we expect to supply 3 million such drive units, which account for roughly 20% of the worldwide recorder market. This volume includes the 1 million drive units supplied for our in-house use. We plan to double this figure to 6 million units next fiscal year, with the aim of capturing 30% of the world market. We have also been developing in new areas. This fiscal year, we developed a DVD recorder unit exclusively using 8 cm DVDs and began supplying it for use in DVD camcorders. We will expand market of the units for other use as well. | |||
(3) Efforts in home audio business | |||
The home audio business is where Pioneer began; it is an important business characterizing our brand image. If video content is to be increasingly viewed in high-definition, demand may grow for audio equipment of comparable quality. This presents us with another business opportunity. | |||
Over the past few years, sales of our home audio business have continued to decline. However, we will revitalize this core business so that it will operate on par with our businesses in plasma displays and DVDs, and improve profitability. To do |
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this, we will first return to Move the Heart, Touch the Soul, which has been Pioneers goal since the company was founded. The entire Pioneer Group will boost its audio-related activities a starting point for proposing new ways to work with audio systems. Our products will include not only a lineup of premium home theater systems delivering superior sound and video to the living room, but also audio systems that upgrade PCs and TV sets into full-scale personal theaters, and products fully compatible with portable digital audio player connections. |
Revised | Previous | |||||||||||||||
projections | projections | |||||||||||||||
for fiscal 2006 | for fiscal 2006 | Changes | Results | |||||||||||||
(A) | (B) | (A B) | for fiscal 2005 | |||||||||||||
Operating revenue |
¥ | 770,000 | ¥ | 770,000 | ¥ | 0 | ¥ | 733,648 | ||||||||
Operating income (loss) |
(25,000 | ) | (25,000 | ) | 0 | 2,592 | ||||||||||
Income (loss) before income taxes |
(73,000 | ) | (28,000 | ) | (45,000 | ) | (187 | ) | ||||||||
Net income (loss) |
¥ | (87,000 | ) | ¥ | (24,000 | ) | ¥ | (63,000 | ) | ¥ | (8,789 | ) | ||||
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Previously | ||||||||||||||||
Amended | announced results | |||||||||||||||
results for first | for first half of | Results | ||||||||||||||
half of fiscal 2006 | fiscal 2006 | Changes | for first half | |||||||||||||
(A) | (B) | (A B) | of fiscal 2005 | |||||||||||||
Operating revenue |
¥ | 349,898 | ¥ | 349,898 | ¥ | 0 | ¥ | 345,047 | ||||||||
Operating income (loss) |
(16,388 | ) | (16,388 | ) | 0 | 13,398 | ||||||||||
Income (loss) before income taxes |
(43,869 | ) | (11,954 | ) | (31,915 | ) | 12,438 | |||||||||
Net income (loss) |
¥ | (58,044 | ) | ¥ | (12,261 | ) | ¥ | (45,783 | ) | ¥ | 4,809 | |||||
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1. | Reason for delisting: | |
As part of its business restructuring plans announced today, the Company has decided to maintain the listing of its Common Stock solely on the Tokyo Stock Exchange and withdraw that on other stock exchanges, with the aim of reducing fixed costs. | ||
2. | Planned schedule: | |
Applications for the delisting will be made immediately to each such stock exchange. The necessary procedures, such as notification to the authorities and/or termination of depositary receipt programs, will be followed, with a plan to complete all delisting procedures by around January 2006. | ||
3. | Stock exchanges on which the Companys shares will continue to be listed: | |
Tokyo Stock Exchange |
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Points of Amendments | Pioneer Corporation and Subsidiaries |
I. | CONSOLIDATED FINANCIAL STATEMENTS | |
FOR THE THREE MONTHS AND THE SIX MONTHS ENDED SEPTEMBER 30, 2005 |
Three months ended September 30 | ||||||||||||
% to | ||||||||||||
2005 | 2004 | prior year | ||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 181,553 | ¥ | 177,696 | 102.2 | % | ||||||
Royalty revenue |
4,162 | 3,864 | 107.7 | |||||||||
Total operating revenue |
185,715 | 181,560 | 102.3 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
148,180 | 133,601 | 110.9 | |||||||||
Selling, general and administrative expenses |
45,054 | 39,573 | 113.9 | |||||||||
Total operating costs and expenses |
193,234 | 173,174 | 111.6 | |||||||||
Operating income (loss) |
(7,519 | ) | 8,386 | | ||||||||
Other income (expenses): |
||||||||||||
Interest income |
625 | 432 | 144.7 | |||||||||
Foreign exchange loss |
(323 | ) | (228 | ) | 141.7 | |||||||
Interest expense |
(325 | ) | (315 | ) | 103.2 | |||||||
Othernet |
(29,718) | * | (76 | ) | | |||||||
Total other income (expenses) |
(29,741) | * | (187 | ) | | |||||||
Income (loss) before income taxes |
(37,260) | * | 8,199 | | ||||||||
Income taxes |
(5,263) | * | 3,937 | | * | |||||||
Minority interest in losses (earnings) of subsidiaries |
3,601 | * | (270 | ) | | |||||||
Equity in losses of affiliated companies |
(24,305) | * | (680 | ) | 3,574.3 | * | ||||||
Net income (loss) |
¥ | (52,701) | * | ¥ | 3,312 | | % | |||||
Six months ended September 30 | ||||||||||||
% to | ||||||||||||
2005 | 2004 | prior year | ||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 344,613 | ¥ | 338,308 | 101.9 | % | ||||||
Royalty revenue |
5,285 | 6,739 | 78.4 | |||||||||
Total operating revenue |
349,898 | 345,047 | 101.4 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
278,393 | 250,878 | 111.0 | |||||||||
Selling, general and administrative expenses |
87,893 | 80,771 | 108.8 | |||||||||
Total operating costs and expenses |
366,286 | 331,649 | 110.4 | |||||||||
Operating income (loss) |
(16,388 | ) | 13,398 | | ||||||||
Other income (expenses): |
||||||||||||
Interest income |
1,252 | 790 | 158.5 | |||||||||
Foreign exchange loss |
(1,065 | ) | (1,161 | ) | 91.7 | |||||||
Interest expense |
(720 | ) | (689 | ) | 104.5 | |||||||
Othernet |
(26,948) | * | 100 | | * | |||||||
Total other income (expenses) |
(27,481) | * | (960 | ) | 2,862.6 | * | ||||||
Income (loss) before income taxes |
(43,869) | * | 12,438 | | ||||||||
Income taxes |
(6,815) | * | 5,544 | | ||||||||
Minority interest in losses (earnings) of subsidiaries |
4,168 | * | (560 | ) | | |||||||
Equity in losses of affiliated companies |
(25,158) | * | (1,525 | ) | 1,649.7 | * | ||||||
Net income (loss) |
¥ | (58,044) | * | ¥ | 4,809 | | % | |||||
* | Amended figures. |
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September 30 | March 31 | |||||||||||||||||||
Increase/ | Increase/ | |||||||||||||||||||
2005 | 2004 | (Decrease) | 2005 | (Decrease) | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Current assets: |
||||||||||||||||||||
Cash and cash equivalents |
¥ | 107,198 | ¥ | 123,936 | ¥ | (16,738 | ) | ¥ | 116,681 | ¥ | (9,483 | ) | ||||||||
Trade receivables, less allowance |
126,981 | 119,863 | 7,118 | 132,176 | (5,195 | ) | ||||||||||||||
Inventories |
126,594 | 135,504 | (8,910 | ) | 109,015 | 17,579 | ||||||||||||||
Others |
73,878 | * | 74,711 | (833) | * | 69,024 | 4,854 | * | ||||||||||||
Total current assets |
434,651 | * | 454,014 | (19,363) | * | 426,896 | 7,755 | * | ||||||||||||
Investments and long-term receivables |
25,268 | 29,553 | (4,285 | ) | 28,828 | (3,560 | ) | |||||||||||||
Property, plant and equipment,
less depreciation |
171,893 | * | 208,964 | (37,071) | * | 210,145 | (38,252) | * | ||||||||||||
Intangible assets |
22,723 | * | 25,590 | (2,867) | * | 24,052 | (1,329) | * | ||||||||||||
Other assets |
44,518 | * | 39,015 | 5,503 | * | 35,246 | 9,272 | * | ||||||||||||
Total assets |
¥ | 699,053 | * | ¥ | 757,136 | ¥ | (58,083) | * | ¥ | 725,167 | ¥ | (26,114) | * | |||||||
LIABILITIES
AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||
Short-term borrowings and current
portion of long-term debt |
¥ | 55,560 | ¥ | 40,615 | ¥ | 14,945 | ¥ | 52,428 | ¥ | 3,132 | ||||||||||
Trade payables |
104,831 | 103,031 | 1,800 | 96,335 | 8,496 | |||||||||||||||
Others |
122,463 | * | 104,554 | 17,909 | * | 102,407 | 20,056 | * | ||||||||||||
Total current liabilities |
282,854 | * | 248,200 | 34,654 | * | 251,170 | 31,684 | * | ||||||||||||
Long-term debt |
79,512 | 87,397 | (7,885 | ) | 81,219 | (1,707 | ) | |||||||||||||
Other long-term liabilities |
41,225 | * | 58,909 | (17,684) | * | 42,371 | (1,146) | * | ||||||||||||
Minority interests |
14,202 | * | 18,281 | (4,079) | * | 18,168 | (3,966) | * | ||||||||||||
Shareholders equity: |
||||||||||||||||||||
Common stock |
49,049 | 49,049 | | 49,049 | | |||||||||||||||
Capital surplus |
82,834 | 82,612 | 222 | 82,735 | 99 | |||||||||||||||
Retained earnings |
201,204 | * | 276,334 | (75,130) | * | 260,556 | (59,352) | * | ||||||||||||
Accumulated other comprehensive
income (loss) |
(39,390 | ) | (53,185 | ) | 13,795 | (47,669 | ) | 8,279 | ||||||||||||
Treasury stock |
(12,437 | ) | (10,461 | ) | (1,976 | ) | (12,432 | ) | (5 | ) | ||||||||||
Total shareholders equity |
281,260 | * | 344,349 | (63,089) | * | 332,239 | (50,979) | * | ||||||||||||
Total liabilities and
shareholders equity |
¥ | 699,053 | * | ¥ | 757,136 | ¥ | (58,083) | * | ¥ | 725,167 | ¥ | (26,114) | * | |||||||
Breakdown of accumulated other
comprehensive income (loss): |
||||||||||||||||||||
Minimum pension liability adjustments |
¥ | (11,391 | ) | ¥ | (21,714 | ) | ¥ | 10,323 | ¥ | (11,186 | ) | ¥ | (205 | ) | ||||||
Net unrealized holding gain on securities |
7,475 | 7,516 | (41 | ) | 8,250 | (775 | ) | |||||||||||||
Cumulative foreign currency translation
adjustments |
(35,474 | ) | (38,987 | ) | 3,513 | (44,733 | ) | 9,259 | ||||||||||||
Total accumulated other comprehensive income (loss) |
¥ | (39,390 | ) | ¥ | (53,185 | ) | ¥ | 13,795 | ¥ | (47,669 | ) | ¥ | 8,279 | |||||||
* | Amended figures. |
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Accumulated | ||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||
Common | Capital | Retained | Comprehensive | Treasury | Shareholders' | |||||||||||||||||||
Stock | Surplus | Earnings | Income (Loss) | Stock | Equity | |||||||||||||||||||
Balance at March 31, 2004 |
¥ | 49,049 | ¥ | 82,464 | ¥ | 273,718 | ¥ | (61,829 | ) | ¥ | (10,464 | ) | ¥ | 332,938 | ||||||||||
Net loss |
(8,789 | ) | (8,789 | ) | ||||||||||||||||||||
Other comprehensive income |
14,160 | 14,160 | ||||||||||||||||||||||
Value ascribed to stock options |
270 | 270 | ||||||||||||||||||||||
Cash dividends (¥25 per share) |
(4,373 | ) | (4,373 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
1 | (1,968 | ) | (1,967 | ) | |||||||||||||||||||
Balance at March 31, 2005 |
¥ | 49,049 | ¥ | 82,735 | ¥ | 260,556 | ¥ | (47,669 | ) | ¥ | (12,432 | ) | ¥ | 332,239 | ||||||||||
Net loss |
(58,044) | * | (58,044) | * | ||||||||||||||||||||
Other comprehensive income |
8,279 | 8,279 | ||||||||||||||||||||||
Value ascribed to stock options |
99 | 99 | ||||||||||||||||||||||
Cash dividends (¥7.5 per share) |
(1,308 | ) | (1,308 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
(5 | ) | (5 | ) | ||||||||||||||||||||
Balance at September 30, 2005 |
¥ | 49,049 | ¥ | 82,834 | ¥ | 201,204 | * | ¥ | (39,390 | ) | ¥ | (12,437 | ) | ¥ | 281,260 | * | ||||||||
Three months | Six months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
I. Operating activities: |
||||||||||||||||
Net income (loss) |
¥ | (52,701) | * | ¥ | 3,312 | ¥ | (58,044) | * | ¥ | 4,809 | ||||||
Depreciation and amortization |
11,575 | 10,778 | 24,122 | 21,287 | ||||||||||||
(Increase) decrease in trade receivables |
(15,718 | ) | (8,194 | ) | 7,160 | 415 | ||||||||||
(Increase) decrease in inventories |
1,396 | (6 | ) | (14,635 | ) | (18,814 | ) | |||||||||
Increase (decrease) in trade payables |
5,607 | (76 | ) | 8,016 | 7,168 | |||||||||||
Increase (decrease) in other accrued liabilities |
10,822 | 1,545 | 2,737 | (11,185 | ) | |||||||||||
Other |
41,299 | * | (5,714 | ) | 31,864 | * | (7,711 | ) | ||||||||
Net cash provided by (used in) operating
activities |
2,280 | 1,645 | 1,220 | (4,031 | ) | |||||||||||
II. Investing activities: |
||||||||||||||||
Payment for purchase of fixed assets |
(10,355 | ) | (12,646 | ) | (19,282 | ) | (26,284 | ) | ||||||||
Payment for purchase of subsidiary |
| (36,615 | ) | | (36,615 | ) | ||||||||||
Other |
3,354 | (17 | ) | 7,357 | 338 | |||||||||||
Net cash used in investing activities |
(7,001 | ) | (49,278 | ) | (11,925 | ) | (62,561 | ) | ||||||||
III. Financing activities: |
||||||||||||||||
Increase (decrease) in short-term borrowings
and long-term debt |
(3,183 | ) | 1,035 | 2,866 | (3,034 | ) | ||||||||||
Dividends paid |
| | (2,180 | ) | (2,193 | ) | ||||||||||
Other |
(1,034 | ) | (220 | ) | (2,073 | ) | (323 | ) | ||||||||
Net cash provided by (used in) financing
activities |
(4,217 | ) | 815 | (1,387 | ) | (5,550 | ) | |||||||||
Effect of exchange rate changes on cash
and cash equivalents |
1,366 | 1,792 | 2,609 | 3,659 | ||||||||||||
Net decrease in cash and cash equivalents |
(7,572 | ) | (45,026 | ) | (9,483 | ) | (68,483 | ) | ||||||||
Cash and cash equivalents, beginning of period |
114,770 | 168,962 | 116,681 | 192,419 | ||||||||||||
Cash and cash equivalents, end of period |
¥ | 107,198 | ¥ | 123,936 | ¥ | 107,198 | ¥ | 123,936 | ||||||||
Free cash flow (I + II) |
¥ | (4,721 | ) | ¥ | (47,633 | ) | ¥ | (10,705 | ) | ¥ | (66,592 | ) | ||||
* | Amended figures. |
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II. | NON-CONSOLIDATED FINANCIAL STATEMENTS | |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 |
Six months ended September 30 | ||||||||||||||||||||
2005 | 2004 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic |
¥ | 31,923 | 13.0 | % | ¥ | 32,120 | 13.7 | % | 99.4 | % | ||||||||||
Export |
84,303 | 34.3 | 77,616 | 33.2 | 108.6 | |||||||||||||||
Home Electronics |
116,226 | 47.3 | 109,737 | 46.9 | 105.9 | |||||||||||||||
Domestic |
55,997 | 22.8 | 61,362 | 26.3 | 91.2 | |||||||||||||||
Export |
73,053 | 29.7 | 62,086 | 26.5 | 117.7 | |||||||||||||||
Car Electronics |
129,051 | 52.5 | 124,173 | 52.8 | 103.9 | |||||||||||||||
Domestic |
494 | 0.2 | 788 | 0.3 | 62.8 | |||||||||||||||
Export |
47 | 0.0 | 64 | 0.0 | 72.9 | |||||||||||||||
Others |
541 | 0.2 | 852 | 0.3 | 63.5 | |||||||||||||||
Domestic |
88,416 | 36.0 | 94,995 | 40.3 | 93.1 | |||||||||||||||
Export |
157,403 | 64.0 | 139,767 | 59.7 | 112.6 | |||||||||||||||
Total |
¥ | 245,819 | 100.0 | % | ¥ | 234,039 | 100.0 | % | 104.7 | % | ||||||||||
Note: | Effective from this fiscal 2006, the Company changed business segment classification for certain businesses. Results related to plasma displays for business use and DJ equipment have been moved from Others to Home Electronics. Previously reported amounts have been reclassified accordingly. |
Six months ended September 30 | ||||||||||||||||
2005 | 2004 | |||||||||||||||
% to | % to | |||||||||||||||
Amount | net sales | Amount | net sales | |||||||||||||
Net sales |
¥ | 245,819 | 100.0 | % | ¥ | 234,039 | 100.0 | % | ||||||||
Cost of sales |
213,720 | 86.9 | 191,874 | 82.0 | ||||||||||||
Selling, general and administrative expenses |
41,592 | 17.0 | 41,981 | 17.9 | ||||||||||||
Operating income (loss) |
(9,493 | ) | (3.9 | ) | 183 | 0.1 | ||||||||||
Non-operating incomenet |
54 | 0.1 | 2,098 | 0.9 | ||||||||||||
Ordinary income (loss) |
(9,439 | ) | (3.8 | ) | 2,282 | 1.0 | ||||||||||
Other income (expenses)net |
357 | 0.1 | (0 | ) | (0.0 | ) | ||||||||||
Income (loss) before income taxes |
(9,081 | ) | (3.7 | ) | 2,281 | 1.0 | ||||||||||
Income taxes |
5,679 | * | 2.3 | * | 141 | 0.1 | ||||||||||
Net income (loss) |
¥ | (14,761) | * | (6.0) | %* | ¥ | 2,140 | 0.9 | % | |||||||
* | Amended figures. |
-5-
September 30 | March 31 | |||||||||||
2005 | 2004 | 2005 | ||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash |
¥ | 46,162 | ¥ | 33,829 | ¥ | 40,502 | ||||||
Notes and accounts receivabletrade |
46,605 | 38,018 | 51,833 | |||||||||
Marketable securities |
| 18,683 | 11,685 | |||||||||
Inventories |
29,044 | 34,733 | 28,018 | |||||||||
Other current assets |
31,020 | 64,070 | 41,683 | |||||||||
Total current assets |
152,832 | 189,336 | 173,724 | |||||||||
Fixed assets: |
||||||||||||
Tangible |
52,674 | 48,282 | 53,301 | |||||||||
Intangible |
28,523 | 21,335 | 29,826 | |||||||||
Investments and others |
199,361 | * | 204,768 | 201,893 | ||||||||
Total fixed assets |
280,559 | * | 274,386 | 285,021 | ||||||||
Total assets |
¥ | 433,392 | * | ¥ | 463,722 | ¥ | 458,745 | |||||
LIABILITIES
AND SHAREHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Notes and accounts payabletrade |
¥ | 53,827 | ¥ | 50,129 | ¥ | 52,738 | ||||||
Accrued expenses |
37,471 | 34,730 | 40,152 | |||||||||
Other current liabilities |
15,350 | 26,766 | 23,611 | |||||||||
Total current liabilities |
106,649 | 111,627 | 116,502 | |||||||||
Long-term liabilities |
73,279 | 76,100 | 73,237 | |||||||||
Total liabilities |
179,929 | 187,727 | 189,740 | |||||||||
Shareholders equity |
253,463 | * | 275,995 | 269,005 | ||||||||
Total liabilities and shareholders equity |
¥ | 433,392 | * | ¥ | 463,722 | ¥ | 458,745 | |||||
* | Amended figures. |
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