Notice on Formulation of New Medium-Term Management Plan “VISION2030” ～ Move Forward The Power to Keep Evolving, Toward the Future ～

Overview of New Medium-Term Management Plan "VISION2030"

JVC Kenwood Corporation has formulated the new medium-term management plan "VISION2030," with the fiscal year ending March 2031 (fiscal 2030) as the final year. The plan evolves the theme of "Transformation and Growth" from VISION2025, refines the business portfolio strategy, and aims to advance management with awareness of capital costs and stock price. It pursues sustainable value creation and aims to leap forward as an excellent company that combines resilience and shrewdness.

Key Management Indicators and Targets

Revenue for fiscal year 2025 was 356.9 billion yen, and efforts are underway toward the target of over 410 billion yen. Operating profit margin was 5.9%, with a target of 9% or more. EBITDA margin was 11.7%, ROE was 12.5%, and ROIC was 8.9%, with ROIC slightly below the target of 10% or more. The D/E ratio was 0.5 times, achieving the target of 0.6 times or less, and PBR was 1.07 times, maintaining a target of above 1.0 times. The total return ratio guideline is 30-45%, with a cost of equity capital targeted in the 7% range.

Business Portfolio Strategy and Focus Areas

Management resources will be shifted to growth areas, continuously optimizing the business portfolio. Growth will be pursued mainly in the Wireless Systems business (Hybrid Narrowband), Entertainment business, Aftermarket business, and OEM business. In particular, the plan is to increase the sales composition ratio of the S&S (Safety & Security) segment from 22% in fiscal 2020 to over 50% by fiscal 2030. Strategic investment in growth-driving businesses, acceleration of business restructuring, and deepening of sustainability management are also key initiatives.

Environmental Recognition and Advancement of Management

Considering geopolitical risks, intensified market fluctuations, accelerated technological innovation, and changes in social and customer values, efforts will be made to build a resilient supply chain and strengthen human capital management. Business transformation utilizing AI and quantum computing, advancement of communication infrastructure, and transition to service-based business models will be promoted to contribute to the realization of a sustainable society.