TIDM35SV
RNS Number : 1752S
Pioneer Corporation
13 May 2009
For Immediate Release
May 13, 2009
Pioneer Announces Business Results for Fiscal 2009
TOKYO - Pioneer Corporation today announced its consolidated and
non-consolidated business results for fiscal 2009, the year ended March 31,
2009.
Effective from fiscal 2009, Pioneer has changed its accounting principles for
preparing consolidated financial statements from U.S. generally accepted
accounting principles (GAAP) to Japanese GAAP. Figures for fiscal 2008 have been
reclassified based on Japanese GAAP accordingly.
Consolidated Financial Highlights
+------------------------------------------+-+--------------+-+-------------+-+------------+
| (In millions of yen except per share information) |
+------------------------------------------------------------------------------------------+
| | | Year ended March 31 |
+------------------------------------------+-+---------------------------------------------+
| | | 2009 | | 2008 | | % to |
| | | | | | |prior year |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Operating revenue | | JPY558,837 | | JPY774,477 | | 72.2% |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Operating income (loss) | | (54,529) | | 9,216 | | - |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Ordinary income (loss) | | (54,420) | | 12,428 | | - |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Net loss | | JPY(130,529) | | JPY(19,040) | | -% |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| | | | | | | |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Net loss per share: | | | | | | |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Basic | | JPY(636.68) | | JPY(103.95) | | |
+------------------------------------------+-+--------------+-+-------------+-+------------+
| Diluted | | JPY(636.68) | | JPY(103.95) | | |
+------------------------------------------+-+--------------+-+-------------+-+------------+
Consolidated Business Results
In fiscal 2009, consolidated operating revenue decreased 27.8% year on year to
JPY558,837 million (US$5,702.4 million). This was mainly the result of a decline
in sales of car audio products, plasma displays and DVD drives, which largely
reflected the sharp deterioration in consumer spending worldwide in the wake of
the U.S. financial crisis as well as the impact of the Japanese yen's
appreciation.
Pioneer reported an operating loss of JPY54,529 million (US$556.4 million)
in fiscal 2009, compared with operating income of JPY9,216 million in fiscal
2008, due to lower operating revenue and deterioration in the gross profit
margin. In addition to this operating loss, Pioneer recorded business
restructuring expenses of JPY24,744 million (US$252.5 million), a loss on
valuation of investment securities of JPY14,871 million (US$151.7 million) and
higher income taxes following an evaluation of deferred tax assets.
Consequently, Pioneer reported a net loss of JPY130,529 million (US$1,331.9
million), compared with a net loss of JPY19,040 million in the previous fiscal
year.
During fiscal 2009, the average value of the Japanese yen appreciated 13.7%
and 12.6% against the U.S. dollar and the euro, respectively, compared with the
previous fiscal year.
Car Electronics operating revenue decreased 22.0% year on year to JPY291,704
million (US$2,976.6 million) because of lower sales of both car audio products
and car navigation systems, partly due to lackluster auto sales worldwide. In
car navigation systems, consumer-market sales declined year on year, mainly due
to lower sales in North America, Japan and Europe. Meanwhile, OEM sales rose on
the back of higher sales in Japan and China, despite lower sales in North
America. In car audio products, consumer-market sales decreased, mainly because
of lower overseas sales. OEM sales also decreased due to lower sales in Japan
and North America. Total OEM sales in this segment accounted for approximately
41% of Car Electronics operating revenue in fiscal 2009, compared with
approximately 39% in fiscal 2008.
In terms of geographic operating revenue, operating revenue in Japan
decreased 9.8% to JPY113,985 million (US$1,163.1 million), and overseas
operating revenue declined 28.2% to JPY177,719 million (US$1,813.5 million).
This segment recorded an operating loss of JPY12,337 million (US$125.9
million) in fiscal 2009, compared with operating income of JPY26,101 million in
fiscal 2008. This was mainly due to the following factors in the car audio
products business: lower sales, and deterioration in the gross profit margin due
to a drop in production volume and the impact of the stronger yen.
Home Electronics operating revenue decreased 36.5% year on year to JPY209,257
million (US$2,135.3 million). This was largely as a result of lower sales of
plasma displays and DVD drives. Display product sales accounted for
approximately 38% of Home Electronics operating revenue in fiscal 2009, compared
with approximately 40% in fiscal 2008.
In terms of geographic operating revenue, operating revenue in Japan
declined 33.0% to JPY31,010 million (US$316.4 million), and overseas operating
revenue fell 37.1% to JPY178,247 million (US$1,818.8 million).
This segment recorded an operating loss of JPY38,622 million (US$394.1
million), compared with an operating loss of JPY17,921 million in the previous
fiscal year. This was mainly due to lower sales and deterioration in the gross
profit margin chiefly in plasma displays.
In the Others segment, operating revenue decreased 18.6% year on year to
JPY57,876 million (US$590.6 million) due principally to lower sales of
electronic devices and parts, speaker units for cellular phones, factory
automation systems and organic light-emitting diode displays.
In terms of geographic operating revenue, operating revenue in Japan
decreased 12.8% to JPY37,483 million (US$382.5 million), and overseas operating
revenue decreased 27.3% to JPY20,393 million (US$208.1 million).
This segment posted an operating loss of JPY3,377 million (US$34.5 million),
compared with operating income of JPY1,756 million in the previous fiscal year,
due to lower sales.
Notes:
1.Operating loss in each business segment represents operating loss before
elimination of intersegment transactions.
2.Effective from fiscal 2009, the patent licensing business, which was
previously classified as an independent business segment, has been included in
the "Others" segment because of its reduced importance to consolidated business
results. Figures for fiscal 2008 have been reclassified accordingly.
Consolidated Financial Position
Total assets as of March 31, 2009 were JPY429,093 million (US$4,378.5 million),
a decrease of JPY133,183 million from March 31, 2008. This mainly reflected
decreases in notes and accounts receivable?trade, inventories, deferred tax
assets, and investment securities. Notes and accounts receivable?trade decreased
JPY34,460 million to JPY60,989 million (US$622.3 million), mainly due to lower
sales. Inventories declined JPY19,990 million to JPY84,886 million (US$866.2
million), mainly due to production cutbacks centered on plasma displays and car
audio products in response to lower sales. Current and noncurrent deferred tax
assets decreased JPY22,758 million to JPY19,581 million (US$199.8 million),
mainly in line with an increase in the valuation allowance. Meanwhile,
investment securities declined JPY16,899 million to JPY18,972 million (US$193.6
million), mainly due to falling prices of shares held by the Company.
Total liabilities as of March 31, 2009 were JPY317,245 million (US$3,237.2
million), up JPY14,324 million from March 31, 2008. This mainly reflected an
increase of JPY95,188 million in short-term loans payable, and decreases of
JPY45,397 million and JPY16,464 million in notes and accounts payable?trade, and
accrued expenses, respectively.
Total net assets were JPY111,848 million (US$1,141.3 million), a decrease of
JPY147,507 million from March 31, 2008. This mainly reflected a decrease of
JPY131,120 million in retained earnings. Another factor was a decline of
JPY13,850 million in foreign currency translation adjustments from March 31,
2008, due to the impact of the yen's appreciation.
Cash Flows
During fiscal 2009, operating activities used net cash of JPY61,563 million
(US$628.2 million). The main factors reducing cash were a loss before income
taxes and minority interests of JPY99,939 million (US$1,019.8 million) and a
decrease in notes and accounts payable?trade of JPY40,536 million (US$413.6
million). These factors outweighed the addback of non-cash expenses, namely
depreciation and amortization of JPY43,187 million (US$440.7 million) and loss
on valuation of investment securities of JPY14,871 million (US$151.7 million),
and a decrease in notes and accounts receivable?trade of JPY27,213 million
(US$277.7 million), among other factors. Investing activities used net cash of
JPY38,292 million (US$390.7 million), mainly for capital expenditures in the Car
Electronics business. Financing activities provided net cash of JPY85,833
million (US$875.8 million), mainly through a net increase in short-term loans
payable.
Consequently, cash and cash equivalents as of March 31, 2009 were JPY63,746
million (US$650.5 million), down JPY17,434 million from March 31, 2008.
Business Forecasts for Fiscal 2010
Consolidated business forecasts for fiscal 2010, the year ending March 31, 2010,
are as follows:
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| | | | | (In millions of yen) |
+-----------------------+-+------------------------------------------+-+-------------------------------------------+
| | | First half | | Full year |
+-----------------------+-+------------------------------------------+-+-------------------------------------------+
| | | Forecasts | | Results | |Percent | | Forecasts | | Results | |Percent |
| | | for | | for | | changes | | for | | for | | changes |
| | | fiscal | | fiscal | | | | fiscal | | fiscal | | |
| | | 2010 | | 2009 | | | | 2010 | | 2009 | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Operating | | JPY195,000 | | JPY327,042 | | -40.4% | | JPY420,000 | | JPY558,837 | | -24.8% |
| revenue | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Operating | | (32,000) | | (14,340) | | - | | (33,000) | | (54,529) | | - |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Ordinary | | (35,000) | | (13,540) | | - | | (37,500) | | (54,420) | | - |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Net | | JPY(47,000) | | JPY(44,071) | | -% | | JPY(83,000) | | JPY(130,529) | | -% |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
In fiscal 2010, Pioneer is forecasting consolidated operating revenue of JPY420
billion, a decrease of 24.8% year on year, mainly based on the withdrawal from
the display business. Another factor is projected lower Car Electronics
operating revenue, mainly from consumer-market car audio products, in line with
falling auto sales.
The Company is forecasting an operating loss of JPY33 billion for fiscal 2010,
an improvement from fiscal 2009, despite the projected lower operating revenue.
This improvement is mainly based on an anticipated reduction of JPY50 billion in
fixed costs due to restructuring.
Pioneer is forecasting an ordinary loss of JPY37.5 billion, mainly due to an
increase of interest expenses.
Combined with restructuring expenses of JPY47 billion and other factors, Pioneer
is also projecting a net loss of JPY83 billion for fiscal 2010.
We are assuming an average U.S. dollar-yen exchange rate of JPY90 and a euro-yen
exchange rate of JPY115 for consolidated business forecasts for fiscal 2010.
Dividends
Pioneer positions its dividend policy as one of its highest management
priorities. On the basis of maintaining stable dividends, the Company's policy
is to set appropriate dividend payments in light of its financial position,
consolidated business results, and other factors.
In fiscal 2009, Pioneer booked a consolidated net loss of JPY130,529
million, mainly due to lower sales resulting from fierce competition in its core
product domains and the global economic downturn. Business restructuring
expenses were another factor. Consequently, Pioneer deeply regrets that it has
decided to pay no year-end dividend for fiscal 2009. As no interim dividend was
paid in fiscal 2009, the annual dividend for fiscal 2009 was cancelled.
Material Events Regarding Going Concern Assumption
In fiscal 2009, conditions gave rise to material uncertainty about Pioneer's
ability to continue its business activities into the future, due to
deterioration in its financial position, resulting from a sharp drop in
operating revenue, large losses and significant net cash used in operating
activities. In response to this situation, Pioneer believes that the uncertainty
regarding the going concern assumption can be avoided by implementing drastic
restructuring as detailed in the following "Basic Management Policies and Issues
to Be Addressed" section.
Basic Management Policies and Issues to Be Addressed
Pioneer seeks to create new value for customers by offering innovative,
high-quality, and high value-added electronics products, with the aim of
realizing the Pioneer Group's philosophy of "Move the Heart and Touch the Soul"
with more people around the world. Based on this group philosophy, Pioneer has
formulated a group vision that serves as a reference point for the Group's
business activities, as follows: "To become a company that encourages all its
members to work as a team, with everyone customer-focused, integrating each
one's professionalism in pursuing innovations one after another."
Pioneer currently faces extremely challenging conditions, such as declining
operating revenue, large losses and significant net cash used in operating
activities, as well as deterioration in its financial position. In response to
this situation, Pioneer is implementing drastic restructuring.
The restructuring now under way is centered on business portfolio
realignment, but also comprises measures to streamline the business framework of
the entire Pioneer Group, and improve the Company's financial position.
Regarding business portfolio realignment, Pioneer will position the Car
Electronics business, with its outstanding technological expertise, product
lineup and brand power, as a core business. In this business, we will work to
build stronger operations that can stay on top of changes in the operating
environment. Meanwhile, through strategic alliances with other companies, the
Company will strive to actively create new markets and business domains in a
timely and cost effective manner.
Specifically, Pioneer has agreed with Mitsubishi Electric Corporation to jointly
develop hardware and software for use in car navigation systems and car AV
products. The two companies have mutually used certain car navigation software
technologies since 2002.
Pioneer will also strive to expand business in China. Pioneer signed a basic
agreement with Shanghai Automotive Industry Corporation (Group) to establish a
joint venture specializing in the development and sale of intelligent transport
systems and provision of related services as well as in the development and
sales of car AV products and car navigation systems.
Pioneer will develop the Home Electronics business centered on home AV products,
DJ equipment and cable TV set-top boxes.
Pioneer will completely withdraw from the display business after ending plasma
TV sales during fiscal 2010. In the optical disc business, Pioneer will form a
joint venture with Sharp Corporation with the aim of restoring this business to
profitability by taking advantage of the strengths of both companies. We are
currently discussing the details of the joint venture, which we plan to
establish by October 1, 2009.
Regarding streamlining the business framework of the entire Pioneer group,
Pioneer is working to streamline organizations to match the new business scale
after business portfolio realignment.
We plan to consolidate our current network of production companies around the
world, to overhaul organizations and structures for sales and to integrate our
domestic network. As for R&D, we will select and focus on R&D themes that match
the realigned business portfolio.
Through this business framework streamlining, we plan to reduce group-wide
personnel by around 5,800 regular employees and about 4,000 temporary and
contract employees, compared with our workforce as of December 31, 2008, and the
number of directors/executive officers will also be reduced.
Regarding improving the Company's financial position, Pioneer is working hard to
bolster its financial position. Given that it is projecting business
restructuring expenses of JPY47 billion in fiscal 2010, the Company believes it
must generate cash and boost equity capital.
Through its own continuing efforts, Pioneer will work to generate cash mainly by
reducing inventories and accelerating trade receivables collections, curbing
capital expenditures, cutting directors'/executive officers' remuneration and
employees' salaries, and selling idle assets. Also, the Company's fiscal 2009
business performance comes into conflict with financial covenants stipulated by
loan agreements with multiple banks. However, the banks have agreed to maintain
their existing loans to Pioneer in recognition of the Company's situation as
described above. Furthermore, Pioneer has received additional loans chiefly from
its main banks, which have pledged their intention to continue providing
financial support to the Company.
In regard to boosting equity capital, the Board of Directors resolved on April
28, 2009 to raise JPY2.5 billion through a third-party allotment of shares to
Honda Motor Co., Ltd. In addition, Pioneer continues to examine other possible
financial partnerships.
Pioneer is considering plans to raise roughly JPY40 billion to meet
anticipated funding needs for business restructuring expenses and the redemption
of convertible bonds, and to implement the medium-term management plan in a
timely and steady manner. Going forward, Pioneer will consider all funding
options in order to raise the necessary funds for boosting its equity capital
and other uses.
Pioneer will make an effort to steadily implement these restructuring measures
and conduct business activities based on medium-term management plan below.
Regarding medium-term consolidated forecasts, Pioneer is projecting an operating
loss and net loss for fiscal 2010 in connection with the implementation of
aforementioned restructuring measures and other factors. However, Pioneer
expects to complete restructuring during fiscal 2010, and from fiscal 2011 plans
to restore operating profitability in both the Car Electronics and Home
Electronics businesses, move back into the black in terms of consolidated net
income, and generate positive net operating cash flows and free cash flows (the
sum of operating cash flows and investing cash flows). Pioneer aims to achieve
consolidated operating revenue of JPY460 billion, operating income of JPY22
billion and net income of JPY16 billion in fiscal 2012. It is also targeting
positive net operating cash flows of JPY60 billion and free cash flows of JPY29
billion. These figures do not include the impact of the joint venture that is
currently being discussed with Sharp Corporation.
In the Car Electronics business, in fiscal 2010, Pioneer plans to implement
drastic restructuring to build a highly efficient, lean operating structure that
can quickly respond to changes in the business environment. Under this
streamlined structure, we will boost our earnings in existing business domains
while laying the groundwork for future business expansion when the market
recovers.
In the consumer-market business, we will launch affordably priced models in the
overseas car navigation and car AV product markets, where future growth is
expected. We are also looking to actively expand business in growth markets,
particularly in newly emerging economies, centering on our car AV products. In
Japan, we aim to stimulate new demand by establishing a telematics business.
In the OEM business, we will bolster ties with longstanding major clients Toyota
Motor Corporation and Honda Motor Co., Ltd, as well as fulfil our duties as a
supplier even more than before to meet the expectations of automakers. By
harnessing proposal capabilities honed in the consumer-market business, we will
work to expand the assembly line product and dealer-option businesses with an
emphasis on car navigation systems. Efforts will also be focused on newly
emerging markets that promise high levels of growth, such as China.
In initiatives to develop new growth businesses, Pioneer will bolster
environmental initiatives that address the need for more energy-efficient,
compact and light products. In addition, we will expand our business domains,
with the aim of becoming a leading company in the car electronics field. In the
car safety and reliability domain, we will focus on raising the sophistication
of car navigation systems by developing systems that are linked to and operate
together with vehicles; in the services domain, we will develop business-use
services such as fleet operation and management services; and in the information
and content domain, we will mainly provide real-time content.
In the Home Electronics business, specifically home AV products, we are
positioning AV receivers, where we have an extensive product lineup covering
high-end to middle-market price ranges, as core products. We will concentrate
business resources on these products in a bid to boost sales. We are also
rolling out new-market products such as built-in home audio systems that cater
to living environments within the home through collaboration with
housing-related companies.
In DJ equipment, we seek to drive earnings growth by further stimulating and
expanding the market through continuous product development that satisfies the
demands of professional use. These efforts will build on our outstanding
technological expertise and product planning capabilities and the trust we have
achieved with professional DJs and nightclubs.
As to cable TV set-top boxes, this market is seeing demand fuelled by
digitalization, and demand for regular replacement of products in use at
subscribers' homes can also be expected. Building on long-standing trust and our
current market position, we seek to steadily expand business to generate stable
earnings.
In fiscal 2009, conditions gave rise to material uncertainty about Pioneer's
ability to continue its business activities into the future, due to
deterioration in the Company's financial position, resulting from a sharp drop
in operating revenue, large losses and significant net cash used in operating
activities. By implementing drastic restructuring as outlined above, Pioneer
believes that the uncertainty regarding the going concern assumption can be
avoided.
Proposed Changes in Management (previously announced on April 28, 2009)
Pioneer has announced the following proposed changes in management, which are
subject to approval by the ordinary general meeting of shareholders to be held
on June 25, 2009.
(1)Candidates for directors to be newly elected:
-Mr. Tatsuo Takeuchi, currently Senior Executive Officer, and General Manager of
Personnel Division and General Manager of Human Resource Development Center,
will be elected as Managing Director.
-Mr. Mikio Ono, currently Senior Executive Officer, and General Manager of
Corporate Planning Division, and in charge of Strategic IT Division and Speaker
Business, will be elected as Managing Director.
-Mr. Takashi Oizumi, attorney-at-law, will be elected as Outside Director.
(2)Mr. Hideki Okayasu, currently Managing Director, and General Manager of
Finance and Accounting Division and Chief Financial Officer, will be promoted to
Senior Managing Director and Representative Director.
(3)Directors who will retire:
-Mr. Hajime Ishizuka, currently Executive Vice President and Representative
Director, and in charge of Corporate Management Group and Corporate Planning
Division, and export management in general
-Mr. Tamihiko Sudo, currently Director
-Mr. Koichi Ueda, currently Outside Director, President and Representative
Director of The Resolution and Collection Corporation, Professor at Meiji Law
School and attorney-at-law
Cautionary Statement with Respect to Forward-Looking Statements
Statements made in this release with respect to our current plans, estimates,
strategies and beliefs, and other statements that are not historical facts are
forward-looking statements about our future performance. These statements are
based on management's assumptions and beliefs in light of the information
currently available to it. We caution that a number of important risks and
uncertainties could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them. It is not our obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. We disclaim any such obligation. Risks and uncertainties
that might affect us include, but are not limited to: (i) general economic
conditions in our markets, particularly levels of consumer spending; (ii)
exchange rates, particularly between the Japanese yen and the U.S. dollar, the
euro, and other currencies in which we make significant sales or in which our
assets and liabilities are denominated; (iii) our ability to continuously design
and develop highly rated products and services in extremely competitive
markets, which are characterized by continual product launches, rapid
technological development, intense price-based competition, subjective and
changing consumer preferences and other factors; (iv) our ability to
successfully implement our business strategies; (v) our ability to compete, as
well as develop and implement successful sales and distribution strategies, in
light of technological developments in and affecting our businesses; (vi) our
continued ability to devote sufficient resources to research and development,
and capital expenditure; (vii) our ability to continuously enhance our brand
image; (viii) the success of our joint ventures and alliances; (ix) the success
of our business restructuring plans; and (x) the outcome of contingencies.
Pioneer Corporation is a leading global manufacturer of consumer- and
business-use electronics products such as audio, video and car electronics. Its
shares are traded on the Tokyo Stock Exchange.
# # # # # #
The U.S. dollar amounts in this release represent translations of the Japanese
yen, for convenience only, at the rate of JPY98=US$1.00, the approximate rate
prevailing on March 31, 2009.
Attachments:
I. Consolidated financial statements for the year ended March 31, 2009
II. Non-consolidated financial statements for the year ended March 31, 2009
For further information, please contact:
Investor Relations Department, Corporate Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6773 / Fax: +81-3-3495-4301
I. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2009
(1) CONSOLIDATED BALANCE SHEETS
+----------------------------------------------------+-+-------------+-+-------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+-----------------------------+
| | | March 31 |
+----------------------------------------------------+-+-----------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+-------------+-+-------------+
| ASSETS | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Current assets: | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Cash and deposits | | JPY79,674 | | JPY63,745 |
+----------------------------------------------------+-+-------------+-+-------------+
| Notes and accounts receivable?trade | | 95,449 | | 60,989 |
+----------------------------------------------------+-+-------------+-+-------------+
| Merchandise and finished goods | | 54,404 | | 45,169 |
+----------------------------------------------------+-+-------------+-+-------------+
| Work in process | | 21,818 | | 14,699 |
+----------------------------------------------------+-+-------------+-+-------------+
| Raw materials and supplies | | 28,654 | | 25,018 |
+----------------------------------------------------+-+-------------+-+-------------+
| Deferred tax assets | | 17,089 | | 7,097 |
+----------------------------------------------------+-+-------------+-+-------------+
| Other | | 23,255 | | 17,420 |
+----------------------------------------------------+-+-------------+-+-------------+
| Allowance for doubtful accounts | | (2,381) | | (2,035) |
+----------------------------------------------------+-+-------------+-+-------------+
| Total current assets | | 317,962 | | 232,102 |
+----------------------------------------------------+-+-------------+-+-------------+
| Noncurrent assets: | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Property, plant and equipment: | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Buildings and structures | | 104,524 | | 102,285 |
+----------------------------------------------------+-+-------------+-+-------------+
| Machinery, vehicles, | | 213,631 | | 176,593 |
| tools, furniture and | | | | |
| fixtures | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Land | | 33,801 | | 33,705 |
+----------------------------------------------------+-+-------------+-+-------------+
| Construction in progress | | 5,317 | | 373 |
+----------------------------------------------------+-+-------------+-+-------------+
| Accumulated depreciation | | (234,521) | | (200,789) |
+----------------------------------------------------+-+-------------+-+-------------+
| Total property, plant and | | 122,752 | | 112,167 |
| equipment | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Intangible assets: | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Goodwill | | 1,497 | | 1,420 |
+----------------------------------------------------+-+-------------+-+-------------+
| Software | | 40,113 | | 39,215 |
+----------------------------------------------------+-+-------------+-+-------------+
| Other | | 5,327 | | 4,163 |
+----------------------------------------------------+-+-------------+-+-------------+
| Total intangible assets | | 46,937 | | 44,798 |
+----------------------------------------------------+-+-------------+-+-------------+
| Investments and other assets: | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Investment securities | | 35,871 | | 18,972 |
+----------------------------------------------------+-+-------------+-+-------------+
| Deferred tax assets | | 25,250 | | 12,484 |
+----------------------------------------------------+-+-------------+-+-------------+
| Other | | 13,442 | | 8,470 |
+----------------------------------------------------+-+-------------+-+-------------+
| Allowance for doubtful | | (109) | | (7) |
| accounts | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Total investments and | | 74,454 | | 39,919 |
| other assets | | | | |
+----------------------------------------------------+-+-------------+-+-------------+
| Total noncurrent assets | | 244,143 | | 196,884 |
+----------------------------------------------------+-+-------------+-+-------------+
| Deferred assets | | 171 | | 107 |
+----------------------------------------------------+-+-------------+-+-------------+
| Total assets | | JPY562,276 | | JPY429,093 |
+----------------------------------------------------+-+-------------+-+-------------+
+--------------------------------------------------------------------+-+------------+-+------------+
| | | (In millions of yen) |
+--------------------------------------------------------------------+-+---------------------------+
| | | March 31 |
+--------------------------------------------------------------------+-+---------------------------+
| | | 2008 | | 2009 |
+--------------------------------------------------------------------+-+------------+-+------------+
| LIABILITIES | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Current liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Notes and accounts payable?trade | | JPY86,195 | | JPY40,798 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Short-term loans payable | | 14,812 | | 110,000 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Current portion of bonds | | 10,000 | | - |
+--------------------------------------------------------------------+-+------------+-+------------+
| Income taxes payable | | 5,601 | | 4,153 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Accrued expenses | | 67,227 | | 50,763 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Provision for product warranties | | 5,265 | | 4,222 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Other | | 30,742 | | 22,484 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total current liabilities | | 219,842 | | 232,420 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Noncurrent liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Bonds payable | | 60,600 | | 60,600 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Long-term loans payable | | 9,179 | | 6,515 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Provision for retirement benefits | | 8,554 | | 12,704 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Other | | 4,746 | | 5,006 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total noncurrent liabilities | | 83,079 | | 84,825 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total | | 302,921 | | 317,245 |
| liabilities | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| NET ASSETS | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Shareholders' equity: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Common stock | | 69,824 | | 69,824 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Capital surplus | | 102,054 | | 102,054 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Retained earnings | | 144,370 | | 13,250 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Treasury stock | | (11,124) | | (11,124) |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total shareholders' equity | | 305,124 | | 174,004 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Valuation and translation adjustments: | | (47,131) | | (63,506) |
+--------------------------------------------------------------------+-+------------+-+------------+
| Minority interests | | 1,362 | | 1,350 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total net | | 259,355 | | 111,848 |
| assets | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total | | JPY562,276 | | JPY429,093 |
| liabilities | | | | |
| and net | | | | |
| assets | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
(2) CONSOLIDATED STATEMENTS OF OPERATIONS
+----------------------------------------------------+-+-------------+--+--------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+-------------------------------+
| | | Year ended March 31 |
+----------------------------------------------------+-+-------------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+-------------+--+--------------+
| Operating revenue: | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Net sales | | JPY772,478 | | JPY558,236 |
+----------------------------------------------------+-+-------------+--+--------------+
| Other operating revenue | | 1,999 | | 601 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total operating revenue | | 774,477 | | 558,837 |
+----------------------------------------------------+-+-------------+--+--------------+
| Cost of sales | | 602,917 | | 477,965 |
+----------------------------------------------------+-+-------------+--+--------------+
| Gross profit | | 171,560 | | 80,872 |
+----------------------------------------------------+-+-------------+--+--------------+
| Selling, general and administrative expenses | | 162,344 | | 135,401 |
+----------------------------------------------------+-+-------------+--+--------------+
| Operating income (loss) | | 9,216 | | (54,529) |
+----------------------------------------------------+-+-------------+--+--------------+
| Non-operating income: | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Interest and dividends | | 6,922 | | 3,696 |
| income | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Equity in earnings of | | 136 | | - |
| affiliated companies | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Other | | 851 | | 678 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total non-operating income | | 7,909 | | 4,374 |
+----------------------------------------------------+-+-------------+--+--------------+
| Non-operating loss: | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Interest expenses | | 2,507 | | 2,840 |
+----------------------------------------------------+-+-------------+--+--------------+
| Foreign exchange loss | | 1,385 | | 243 |
+----------------------------------------------------+-+-------------+--+--------------+
| Equity in losses of | | - | | 132 |
| affiliated companies | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Other | | 805 | | 1,050 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total non-operating loss | | 4,697 | | 4,265 |
+----------------------------------------------------+-+-------------+--+--------------+
| Ordinary income (loss) | | 12,428 | | (54,420) |
+----------------------------------------------------+-+-------------+--+--------------+
| Extraordinary income: | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Gain on sale of noncurrent | | 12,426 | | 961 |
| assets | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Other | | 590 | | 155 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total extraordinary income | | 13,016 | | 1,116 |
+----------------------------------------------------+-+-------------+--+--------------+
| Extraordinary loss: | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Loss on sale and disposal | | 555 | | 2,856 |
| of noncurrent assets | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Impairment loss | | 22,692 | | 4,132 |
+----------------------------------------------------+-+-------------+--+--------------+
| Loss on valuation of | | 99 | | 14,871 |
| investment securities | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Business restructuring | | - | | 24,744 |
| expenses | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Other | | - | | 32 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total extraordinary loss | | 23,346 | | 46,635 |
+----------------------------------------------------+-+-------------+--+--------------+
| Income (loss) before income taxes and minority | | 2,098 | | (99,939) |
| interests | | | | |
+----------------------------------------------------+-+-------------+--+--------------+
| Income taxes?current | | 8,600 | | 4,805 |
+----------------------------------------------------+-+-------------+--+--------------+
| Income taxes?deferred | | 12,135 | | 25,620 |
+----------------------------------------------------+-+-------------+--+--------------+
| Total income taxes | | 20,735 | | 30,425 |
+----------------------------------------------------+-+-------------+--+--------------+
| Minority interests in income | | 403 | | 165 |
+----------------------------------------------------+-+-------------+--+--------------+
| Net loss | | JPY(19,040) | | JPY(130,529) |
+----------------------------------------------------+-+-------------+--+--------------+
(3) CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Year ended March 31, 2008 | | | | | | (In millions of yen) |
+------------------------------------------------------------+-------------+------------+-------------+------------+-------------+----------------------------------------+
| | | Shareholders' equity | Total | Minority | | Total |
| | | | valuation |interests | | net |
| | | | and | | | assets |
| | | |translation | | | |
| | | |adjustments | | | |
+ +----------------+-----------------------------------------------------------------+ + +---------------+ +
| | | Common | | | Capital | | Retained | Treasury | Total | |
| | | stock | | | surplus | | earnings | stock |shareholders' | |
| | | | | | | | | | equity | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Balance | | JPY49,049 | JPY81,279 | JPY166,497 | JPY(12,453) | JPY284,372 | JPY(12,189) | JPY14,469 | | JPY286,652 |
| at March | | | | | | | | | | |
| 31, 2007 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Adjustment | | | | (996) | | (996) | | | | (996) |
| pursuant | | | | | | | | | | |
| to FIN48 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Amount | | | | | | | | | | |
| of | | | | | | | | | | |
| changes | | | | | | | | | | |
| in the | | | | | | | | | | |
| fiscal | | | | | | | | | | |
| year: | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Issuance | | 20,775 | 20,775 | | | 41,550 | | | | 41,550 |
| of new | | | | | | | | | | |
| shares | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Cash | | | | (1,744) | | (1,744) | | | | (1,744) |
| dividends | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Net | | | | (19,040) | | (19,040) | | | | (19,040) |
| loss | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Acquisition | | | | | (9) | (9) | | | | (9) |
| of treasury | | | | | | | | | | |
| stock | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Disposal | | | | (347) | 1,338 | 991 | | | | 991 |
| of | | | | | | | | | | |
| treasury | | | | | | | | | | |
| stock | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Other | | | | | | - | (34,942) | (13,107) | | (48,049) |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Total | | 20,775 | 20,775 | (21,131) | 1,329 | 21,748 | (34,942) | (13,107) | | (26,301) |
| changes | | | | | | | | | | |
| in the | | | | | | | | | | |
| fiscal | | | | | | | | | | |
| year | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Balance | | JPY69,824 | JPY102,054 | JPY144,370 | JPY(11,124) | JPY305,124 | JPY(47,131) | JPY1,362 | | JPY259,355 |
| at March | | | | | | | | | | |
| 31, 2008 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Year ended March 31, 2009 | | | | | | (In millions of yen) |
+------------------------------------------------------------+-------------+------------+-------------+------------+-------------+----------------------------------------+
| | | Shareholders' equity | Total | Minority | | Total |
| | | | valuation |interests | | net |
| | | | and | | | assets |
| | | |translation | | | |
| | | |adjustments | | | |
+ +----------------+-----------------------------------------------------------------+ + +---------------+ +
| | | Common | | | Capital | | Retained | Treasury | Total | |
| | | stock | | | surplus | | earnings | stock |shareholders' | |
| | | | | | | | | | equity | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Balance | | JPY69,824 | JPY102,054 | JPY144,370 | JPY(11,124) | JPY305,124 | JPY(47,131) | JPY1,362 | | JPY259,355 |
| at March | | | | | | | | | | |
| 31, 2008 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Adjustment | | | | (75) | | (75) | | | | (75) |
| pursuant | | | | | | | | | | |
| to FASB158 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Amount | | | | | | | | | | |
| of | | | | | | | | | | |
| changes | | | | | | | | | | |
| in the | | | | | | | | | | |
| fiscal | | | | | | | | | | |
| year: | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Cash | | | | (513) | | (513) | | | | (513) |
| dividends | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Net | | | | (130,529) | | (130,529) | | | | (130,529) |
| loss | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Acquisition | | | | | (4) | (4) | | | | (4) |
| of treasury | | | | | | | | | | |
| stock | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Disposal | | | | (3) | 4 | 1 | | | | 1 |
| of | | | | | | | | | | |
| treasury | | | | | | | | | | |
| stock | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Other | | | | | | - | (16,375) | (12) | | (16,387) |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Total | | - | - | (131,045) | - | (131,045) | (16,375) | (12) | | (147,432) |
| changes | | | | | | | | | | |
| in the | | | | | | | | | | |
| fiscal | | | | | | | | | | |
| year | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
| Balance | | JPY69,824 | JPY102,054 | JPY13,250 | JPY(11,124) | JPY174,004 | JPY(63,506) | JPY1,350 | | JPY111,848 |
| at March | | | | | | | | | | |
| 31, 2009 | | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+------------+-------------+------------+-------------+-----------+---------------+------------+
(4) CONSOLIDATED STATEMENT OF CASH FLOWS
+----------------------------------------------------+-+------------+-+-------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+----------------------------+
| | | Year ended March 31 |
+----------------------------------------------------+-+----------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+------------+-+-------------+
| I.Cash flows from operating | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Income (loss) before | | JPY2,098 | | JPY(99,939) |
| income taxes and | | | | |
| minority interests | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Depreciation and | | 44,270 | | 43,187 |
| amortization | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Impairment loss | | 22,692 | | 4,132 |
+----------------------------------------------------+-+------------+-+-------------+
| Loss (gain) on sales | | (11,871) | | 1,895 |
| of noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Loss on valuation of | | 99 | | 14,871 |
| investment | | | | |
| securities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Decrease in notes | | 18,869 | | 27,213 |
| and accounts | | | | |
| receivable?trade | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Decrease (increase) | | (7,318) | | 8,500 |
| in inventories | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Decrease in notes | | (358) | | (40,536) |
| and accounts | | | | |
| payable?trade | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Decrease in accrued | | (8,405) | | (12,258) |
| expenses | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Other, net | | (10,973) | | (569) |
+----------------------------------------------------+-+------------+-+-------------+
| Subtotal | | 49,103 | | (53,504) |
+----------------------------------------------------+-+------------+-+-------------+
| Interest and | | 6,612 | | 4,066 |
| dividends income | | | | |
| received | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Interest expenses | | (2,259) | | (3,010) |
| paid | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Income taxes paid | | (11,236) | | (9,115) |
+----------------------------------------------------+-+------------+-+-------------+
| Net cash | | 42,220 | | (61,563) |
| provided by | | | | |
| (used in) | | | | |
| operating | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| II.Cash flows from investing | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Purchase of | | (62,177) | | (45,849) |
| noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Proceeds from sales | | 3,251 | | 1,846 |
| of noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Payment for purchase | | (14,732) | | - |
| of shares of | | | | |
| consolidated | | | | |
| subsidiaries | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Payment for purchase | | (20,539) | | - |
| of investment | | | | |
| securities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Proceeds from sales | | 2,483 | | 161 |
| of investment | | | | |
| securities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Proceeds from | | - | | 5,515 |
| cancellation of | | | | |
| insurance funds | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Other, net | | (847) | | 35 |
+----------------------------------------------------+-+------------+-+-------------+
| Net cash used | | (92,561) | | (38,292) |
| in investing | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| III.Cash flows from financing | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Net increase in | | 3,092 | | 99,842 |
| short-term loans | | | | |
| payable | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Repayment of | | (4,072) | | (3,064) |
| long-term loans | | | | |
| payable | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Redemption of bonds | | - | | (10,000) |
+----------------------------------------------------+-+------------+-+-------------+
| Cash dividends paid | | (1,744) | | (513) |
+----------------------------------------------------+-+------------+-+-------------+
| Proceeds from | | 41,358 | | - |
| issuance of new | | | | |
| shares, net of stock | | | | |
| issuance cost | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Other, net | | (2,702) | | (432) |
+----------------------------------------------------+-+------------+-+-------------+
| Net cash | | 35,932 | | 85,833 |
| provided by | | | | |
| financing | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Effect of exchange rate changes on cash and | | (6,231) | | (3,412) |
| cash equivalents | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Net decrease in cash and cash equivalents | | (20,640) | | (17,434) |
+----------------------------------------------------+-+------------+-+-------------+
| Cash and cash equivalents at beginning of | | 101,820 | | 81,180 |
| period | | | | |
+----------------------------------------------------+-+------------+-+-------------+
| Cash and cash equivalents at end of period | | JPY81,180 | | JPY63,746 |
+----------------------------------------------------+-+------------+-+-------------+
(5) SEGMENT INFORMATION
<Business Segments>
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| | | (In millions of yen) |
+---------------------------+-+--------------------------------------------------------------------------------------------+
| Year ended | | Car | | Home | | Others | | Total | | Corporate | |Consolidated |
| March 31, 2008 | |Electronics | |Electronics | | | | | | and | | |
| | | | | | | | | | |Eliminations | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Operating revenue: | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Unaffiliated | | JPY373,883 | | JPY329,530 | | JPY71,064 | | JPY774,477 | | - | | JPY774,477 |
| customers | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Inter-segment | | 2,002 | | 670 | | 33,553 | | 36,225 | | JPY(36,225) | | - |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Total | | 375,885 | | 330,200 | | 104,617 | | 810,702 | | (36,225) | | 774,477 |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Operating income | | JPY26,101 | | JPY(17,921) | | JPY1,756 | | JPY9,936 | | JPY(720) | | JPY9,216 |
| (loss) | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| | | (In millions of yen) |
+---------------------------+-+----------------------------------------------------------------------------------------------+
| Year ended | | Car | | Home | | Others | | Total | | Corporate | |Consolidated |
| March 31, 2009 | |Electronics | |Electronics | | | | | | and | | |
| | | | | | | | | | |Eliminations | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| Operating revenue: | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| Unaffiliated | | JPY291,704 | | JPY209,257 | | JPY57,876 | | JPY558,837 | | - | | JPY558,837 |
| customers | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| Inter-segment | | 1,797 | | 556 | | 27,304 | | 29,657 | | JPY(29,657) | | - |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| Total | | 293,501 | | 209,813 | | 85,180 | | 588,494 | | (29,657) | | 558,837 |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
| Operating loss | | JPY(12,337) | | JPY(38,622) | | JPY(3,377) | | JPY(54,336) | | JPY(193) | | JPY(54,529) |
+---------------------------+-+-------------+-+-------------+-+------------+-+-------------+-+--------------+-+--------------+
<Geographic Segments>
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| | | (In millions of yen) |
+---------------------------+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Year ended | | Japan | | North | | Europe | | Other | | Total | | Corporate | |Consolidated |
| March 31, 2008 | | | | America | | | | Regions | | | | and | | |
| | | | | | | | | | | | |Eliminations | | |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| Operating | | | | | | | | | | | | | | |
| revenue: | | | | | | | | | | | | | | |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| Unaffiliated | | JPY278,243 | | JPY179,393 | | JPY166,905 | | JPY149,936 | | JPY774,477 | | - | | JPY774,477 |
| customers | | | | | | | | | | | | | | |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| Inter-segment | | 352,153 | | 5,504 | | 437 | | 241,397 | | 599,491 | | JPY(599,491) | | - |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| Total | | 630,396 | | 184,897 | | 167,342 | | 391,333 | | 1,373,968 | | (599,491) | | 774,477 |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
| Operating income | | JPY(8,150) | | JPY640 | | JPY1,129 | | JPY14,258 | | JPY7,877 | | JPY1,339 | | JPY9,216 |
| (loss) | | | | | | | | | | | | | | |
+---------------------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+--------------+
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| | | (In millions of yen) |
+---------------------------+----------+------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Year ended | | Japan | | North | | Europe | | Other | | Total | | Corporate | |Consolidated |
| March 31, 2009 | | | | America | | | | Regions | | | | and | | |
| | | | | | | | | | | | |Eliminations | | |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| Operating | | | | | | | | | | | | | | |
| revenue: | | | | | | | | | | | | | | |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| Unaffiliated | | JPY222,451 | | JPY109,394 | | JPY111,717 | | JPY115,275 | | JPY558,837 | | - | | JPY558,837 |
| customers | | | | | | | | | | | | | | |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| Inter-segment | | 216,656 | | 4,046 | | 375 | | 170,288 | | 391,365 | | JPY(391,365) | | - |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| Total | | 439,107 | | 113,440 | | 112,092 | | 285,563 | | 950,202 | | (391,365) | | 558,837 |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
| Operating income | | JPY(60,693) | | JPY(3,694) | | JPY(4,920) | | JPY4,162 | | JPY(65,145) | | JPY10,616 | | JPY(54,529) |
| (loss) | | | | | | | | | | | | | | |
+---------------------------+----------+-------------+----------+------------+----------+------------+----------+------------+----------+-------------+----------+--------------+----------+--------------+
Note: Geographic segment information is based on the location of the parent
company and its subsidiaries.
<Operating Revenue by Overseas Geographic Market>
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| | | (In millions of yen) |
+------------------------------------+-+---------------------------------------------------------+
| Year ended | | North | | Europe | | Other | | Total |
| March 31, 2008 | | America | | | | Regions | | |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| Overseas operating revenue | | JPY180,911 | | JPY169,146 | | JPY208,777 | | JPY558,834 |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| Consolidated operating revenue | | | | | | | | JPY774,477 |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| % to consolidated operating | | 23.4% | | 21.8% | | 27.0% | | 72.2% |
| revenue | | | | | | | | |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| | | (In millions of yen) |
+------------------------------------+-+---------------------------------------------------------+
| Year ended | | North | | Europe | | Other | | Total |
| March 31, 2009 | | America | | | | Regions | | |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| Overseas operating revenue | | JPY109,894 | | JPY112,693 | | JPY153,772 | | JPY376,359 |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| Consolidated operating revenue | | | | | | | | JPY558,837 |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
| % to consolidated operating | | 19.7% | | 20.2% | | 27.4% | | 67.3% |
| revenue | | | | | | | | |
+------------------------------------+-+------------+-+------------+-+------------+-+------------+
Note: Operating revenue by geographic market is based on the location of each
unaffiliated customer.
<Operating Revenue by Segment>
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| | | (In millions of yen) |
+-------------------------+-+-------------------------------------------------------------------------------------+
| | | Year ended March 31 |
+-------------------------+-+-------------------------------------------------------------------------------------+
| | | 2008 | | 2009 | | % to |
| | | | | | |prior year |
+-------------------------+-+------------------------+-+-----------------------------------+---------+ +
| | | Amount | | % to | | | Amount | | % to | |
| | | | | total | | | | | total | |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | JPY126,362 | | 16.3% | | JPY113,985 | | 20.4% | | 90.2% |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 247,521 | | 32.0 | | 177,719 | | 31.8 | | 71.8 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Car Electronics | | 373,883 | | 48.3 | | 291,704 | | 52.2 | | 78.0 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 46,285 | | 6.0 | | 31,010 | | 5.5 | | 67.0 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 283,245 | | 36.5 | | 178,247 | | 31.9 | | 62.9 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Home Electronics | | 329,530 | | 42.5 | | 209,257 | | 37.4 | | 63.5 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 42,996 | | 5.5 | | 37,483 | | 6.8 | | 87.2 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 28,068 | | 3.7 | | 20,393 | | 3.6 | | 72.7 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Others | | 71,064 | | 9.2 | | 57,876 | | 10.4 | | 81.4 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 215,643 | | 27.8 | | 182,478 | | 32.7 | | 84.6 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 558,834 | | 72.2 | | 376,359 | | 67.3 | | 67.3 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Total | | JPY774,477 | | 100.0% | | JPY558,837 | | 100.0% | | 72.2% |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
Notes:
1.Effective from fiscal 2009, the Company has changed its accounting principles
for preparing consolidated financial statements from U.S. generally accepted
accounting principles (GAAP) to Japanese GAAP. Figures for fiscal 2008 have been
reclassified based on Japanese GAAP.
2.Effective from fiscal 2009, the patent licensing business, which was
previously classified as an independent business segment, has been included in
the "Others" segment because of its reduced importance to consolidated business
results. Figures for the corresponding period of fiscal 2008 have been
reclassified. Previously reported figures have been reclassified to conform to
this presentation.
3.The Company's business is classified into three segments: "Car Electronics,"
"Home Electronics," and "Others." Principal products and services included in
each segment are as follows:
Car Electronics:
car navigation systems, car stereos, car AV systems and car
speakers
Home Electronics:
plasma displays, LCD TVs, DVD recorders, DVD players, DVD
drives, Blu-ray Disc recorders, Blu-ray Disc players, Blu-ray Disc drives, audio
systems, audio components, DJ equipment and equipment for cable TV systems
Others:
organic light-emitting diode displays, factory automation systems,
speaker units, electronics devices and parts, telephones, AV accessories,
business-use AV systems and licensing of patents related to laser optical disc
technologies
4.Effective from fiscal 2009, Pioneer and its domestic subsidiaries have applied
the "Accounting Standard for Measurement of Inventories"(ASBJ Statement No.9
dated July 5, 2006), and now these inventories are measured by means of the cost
method, which evaluates the amount of the inventories shown on the balance sheet
by writing them down based on their decrease in profitability. The impact on the
Company's consolidated statements of operations is minor.
5.Effective from fiscal 2009, "Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statement"(ASBJ May 17, 2006, PITF No.18) has been applied. Accordingly, some
revisions are made to the consolidated accounts as necessary. The impact on the
Company's consolidated statements of operations is minor.
Going concern:
Not applicable.
Subsequent event:
The company resolved, at a meeting of its board of directors held on April 28,
2009, to issue its new shares to Honda Motor Co., Ltd through a third-party
allotment.
(Terms and conditions of issuance)
Number of shares to be issued : 14,700,000 shares of common stock
Issue price : 170 yen per share
Aggregate issue price : 2,499,000,000 yen
Amount to be accounted for as stated capital : 85 yen per share
Shareholding ratio of Honda Motor Co., Ltd.: 6.5%(after the issuance)
It is expected that such issuance of new shares will be completed before the end
of June 2009. The issue date or the closing date is to be determined at a
meeting of the board of directors to be held later. It is also possible that the
terms and conditions of issuance may be modified as a result of discussions with
the party to which new shares are to be allotted.
The funds to be raised through the issuance of new shares will be applied to
working capital. In particular, the funds will be applied to a part of research
and development expenses for the Car Electronics business, which will be
positioned as a core business of the Company.
II. NON-CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2009
(1) CONDENSED BALANCE SHEETS
+--------------------------------------------------------------------+-+------------+-+-+------------+
| | | (In millions of yen) |
+--------------------------------------------------------------------+-+-----------------------------+
| | | March 31 |
+--------------------------------------------------------------------+-+-----------------------------+
| | | 2008 | | 2009 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| ASSETS | | | | |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Current assets: | | | | |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Cash and deposits | | JPY19,297 | | JPY25,164 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Notes and accounts receivable-trade | | 44,299 | | 24,424 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Inventories | | 28,431 | | 25,926 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Other current assets | | 58,113 | | 91,199 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Total current assets | | 150,142 | | 166,716 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Noncurrent assets: | | | | |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Tangible | | 59,174 | | 51,075 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Intangible | | 37,099 | | 36,945 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Investments and others | | 203,886 | | 179,453 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Total noncurrent assets | | 300,161 | | 267,474 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Deferred assets | | 170 | | 106 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| Total assets | | JPY450,474 | | JPY434,297 |
+--------------------------------------------------------------------+-+------------+-+--------------+
| LIABILITIES | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Current liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Notes and accounts payable-trade | | JPY48,186 | | JPY23,295 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Short-term loans payable | | 34,144 | | 137,640 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Accrued expenses | | 50,325 | | 36,013 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Other current liabilities | | 18,262 | | 10,335 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total current liabilities | | 150,919 | | 207,284 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Noncurrent liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Bonds payable | | 60,600 | | 60,600 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Other noncurrent liabilities | | 37,676 | | 59,096 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total noncurrent liabilities | | 98,276 | | 119,696 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total | | 249,196 | | 326,980 |
| liabilities | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| NET ASSETS | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Shareholders' equity: | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Common stock | | 69,823 | | 69,823 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Capital surplus | | 102,053 | | 102,053 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Retained earnings | | 39,099 | | (54,803) |
+--------------------------------------------------------------------+-+------------+---+------------+
| Treasury stock | | (11,048) | | (11,049) |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total shareholders' equity | | 199,928 | | 106,024 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Valuation and translation adjustments | | 1,350 | | 1,291 |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total net | | 201,278 | | 107,316 |
| assets | | | | |
+--------------------------------------------------------------------+-+------------+---+------------+
| Total | | JPY450,474 | | JPY434,297 |
| liabilities | | | | |
| and net | | | | |
| assets | | | | |
+--------------------------------------------------------------------+-+------------+-+-+------------+
(2) CONDENSED STATEMENTS OF OPERATIONS
+----------------------------------------------------+-+-------------+--+-------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+------------------------------+
| | | Year ended March 31 |
+----------------------------------------------------+-+------------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+-------------+--+-------------+
| Operating revenue | | JPY537,754 | | JPY370,454 |
+----------------------------------------------------+-+-------------+--+-------------+
| Cost of sales | | 482,233 | | 358,852 |
+----------------------------------------------------+-+-------------+--+-------------+
| Selling, general and administrative | | 78,145 | | 66,538 |
| expenses | | | | |
+----------------------------------------------------+-+-------------+--+-------------+
| Operating loss | | (22,624) | | (54,937) |
+----------------------------------------------------+-+-------------+--+-------------+
| Non-operating income-net | | 40,780 | | 18,609 |
+----------------------------------------------------+-+-------------+--+-------------+
| Ordinary income (loss) | | 18,156 | | (36,327) |
+----------------------------------------------------+-+-------------+--+-------------+
| Other expenses-net | | (39,577) | | (44,278) |
+----------------------------------------------------+-+-------------+--+-------------+
| Loss before income taxes | | (21,421) | | (80,606) |
+----------------------------------------------------+-+-------------+--+-------------+
| Income taxes | | 9,975 | | 12,781 |
+----------------------------------------------------+-+-------------+--+-------------+
| Net loss | | JPY(31,396) | | JPY(93,387) |
+----------------------------------------------------+-+-------------+--+-------------+
(3) CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Year ended March 31, 2008 | | | | | (In millions of yen) |
+------------------------------------------------------------+-------------+-----------+-------------+------------+------------------------------------------+
| | | Shareholders' equity | Total | | Total |
| | | | valuation | | net |
| | | | and | | assets |
| | | |translation | | |
| | | |adjustments | | |
+ +----------------+----------------------------------------------------------------+ +---------------+ +
| | | Common | | Capital | | Retained | Treasury | Total | |
| | | stock | | surplus | | earnings | stock |shareholders' | |
| | | | | | | | | equity | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Balance | | JPY49,048 | JPY81,314 | JPY72,574 | JPY(12,452) | JPY190,485 | JPY5,920 | | JPY196,405 |
| at March | | | | | | | | | |
| 31, 2007 | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Issuance | | 20,775 | 20,775 | | | 41,550 | | | 41,550 |
| of new | | | | | | | | | |
| shares | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Cash | | | | (1,744) | | (1,744) | | | (1,744) |
| dividends | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Net | | | | (31,396) | | (31,396) | | | (31,396) |
| loss | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Acquisition | | | | | (8) | (8) | | | (8) |
| of treasury | | | | | | | | | |
| stock | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Disposal | | | (36) | (334) | 1,412 | 1,042 | | | 1,042 |
| of | | | | | | | | | |
| treasury | | | | | | | | | |
| stock | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Other | | | | | | - | (4,570) | | (4,570) |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
| Balance | | JPY69,823 | JPY102,053 | JPY39,099 | JPY(11,048) | JPY199,928 | JPY1,350 | | JPY201,278 |
| at March | | | | | | | | | |
| 31, 2008 | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-----------+-------------+------------+-------------+---------------+------------+
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Year ended March 31, 2009 | | | | | (In millions of yen) |
+------------------------------------------------------------+-------------+-------------+-------------+------------+------------------------------------------+
| | | Shareholders' equity | Total | | Total |
| | | | valuation | | net |
| | | | and | | assets |
| | | |translation | | |
| | | |adjustments | | |
+ +----------------+------------------------------------------------------------------+ +---------------+ +
| | | Common | | Capital | | Retained | Treasury | Total | |
| | | stock | | surplus | | earnings | stock |shareholders' | |
| | | | | | | | | equity | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Balance | | JPY69,823 | JPY102,053 | JPY39,099 | JPY(11,048) | JPY199,928 | JPY1,350 | | JPY201,278 |
| at March | | | | | | | | | |
| 31, 2008 | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Cash | | | | (512) | | (512) | | | (512) |
| dividends | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Net | | | | (93,387) | | (93,387) | | | (93,387) |
| loss | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Acquisition | | | | | (4) | (4) | | | (4) |
| of treasury | | | | | | | | | |
| stock | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Disposal | | | | (2) | 3 | 1 | | | 1 |
| of | | | | | | | | | |
| treasury | | | | | | | | | |
| stock | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Other | | | | | | - | (58) | | (58) |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
| Balance | | JPY69,823 | JPY102,053 | JPY(54,803) | JPY(11,049) | JPY106,024 | JPY1,291 | | JPY107,316 |
| at March | | | | | | | | | |
| 31, 2009 | | | | | | | | | |
+-------------------------------+----------------+-----------+-------------+-------------+-------------+------------+-------------+---------------+------------+
Going concern:
Not applicable.
Subsequent event:
The company resolved, at a meeting of its board of directors held on April 28,
2009, to issue its new shares to Honda Motor Co., Ltd through a third-party
allotment.
(Terms and conditions of issuance)
Number of shares to be issued : 14,700,000 shares of common stock
Issue price : 170 yen per share
Aggregate issue price : 2,499,000,000 yen
Amount to be accounted for as stated capital : 85 yen per share
Shareholding ratio of Honda Motor Co., Ltd.: 6.5%(after the issuance)
It is expected that such issuance of new shares will be completed before the end
of June 2009. The issue date or the closing date is to be determined at a
meeting of the board of directors to be held later. It is also possible that the
terms and conditions of issuance may be modified as a result of discussions with
the party to which new shares are to be allotted.
The funds to be raised through the issuance of new shares will be applied to
working capital. In particular, the funds will be applied to a part of research
and development expenses for the Car Electronics business, which will be
positioned as a core business of the Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKNKPKBKDAPD
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