The Home & Mobile Electronics business consists of the home entertainment business, which includes home audio systems, AV accessories and displays, and the digital imaging business, which encompasses mainly camcorders (video cameras).

In the home entertainment business, the AV accessory segment established a highly profitable structure by forming a fabless business model. The home audio system segment, as the common business of Kenwood and JVC, succeeded in turning a profit by leveraging the effects of integration and structural reforms. The display segment drastically reduced fixed costs by narrowing down unprofitable models and regions and achieving the resultant restructuring caused by reviewing production and sales systems.

With regard to the digital imaging business, sales of mainstay camcorders increased in the domestic market. However, their sales decreased in overseas markets owing to price declines and a shift of demand to low-end models. As a result, profit and loss of the business deteriorated greatly. To cope with this situation, we made every effort to improve product competitiveness and cut fixed costs, aiming for a substantial improvement in profit and loss.

In future, in the home entertainment business, we will have the AV accessory segment, a highly profitable base, advance into unexplored markets. At the same time, we will reinforce the domestic market to accelerate its growth. The audio segment will shift its focus of investment from existing fields to new ones, and make production and development more efficient, by leveraging the effects of integration and structural reforms. The display segment will shift to a new business model while strengthening its presence. It will do this by implementing, beginning with the North American and emerging markets, a partnership strategy that utilizes brand power, marketing capability, product planning and development ability, and sales networks.

Regarding the digital imaging business, the camcorder segment will strengthen its cost and product competitiveness by using newly developed processors as the unified platform. It will further enhance its second-ranked position in the world market by implementing a product strategy to win over users of still cameras, such as PICSIO — a new concept camcorder that comes up with new image communication — and by developing new sales routes. Furthermore, we will expand and enhance our business taking into consideration cooperation and alliance with other companies. We will continue to develop a projector that adopts D-ILA, a proprietarily-developed optical device, as the next-generation mainstay of the video field.