SIGNATURES |
PIONEER CORPORATION | ||||
(Registrant) | ||||
Date: October 31, 2006 |
||||
By | /s/ Tamihiko Sudo | |||
Tamihiko Sudo | ||||
President and Representative Director |
1. | The announcement released by the Company to the press in Japan dated October 31, 2006, concerning its consolidated second-quarter and semiannual business results, and non-consolidated semiannual business results, for the periods ended September 30, 2006. |
2. | The announcement released by the Company to the press in Japan dated October 31, 2006, concerning its decision to sell some land and buildings, comprising all of its Tokorozawa Plant and some of its Omori Plant. |
Three months | Six months | |||||||||||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||||||||||
% to | % to | |||||||||||||||||||||||
prior | prior | |||||||||||||||||||||||
2006 | 2005 | year | 2006 | 2005 | year | |||||||||||||||||||
Operating revenue |
¥ | 188,643 | ¥ | 179,888 | 104.9 | % | ¥ | 380,319 | ¥ | 339,084 | 112.2 | % | ||||||||||||
Operating income (loss) |
4,614 | (7,733 | ) | | 11,691 | (16,664 | ) | | ||||||||||||||||
Income (loss) from continuing operations
before income taxes |
4,620 | (37,481 | ) | | 12,624 | (44,153 | ) | | ||||||||||||||||
Income (loss) from continuing operations |
887 | (52,838 | ) | | 6,433 | (58,207 | ) | | ||||||||||||||||
Income from discontinued operations, net of
tax |
2,659 | 137 | | 2,775 | 163 | | ||||||||||||||||||
Net income (loss) |
¥ | 3,546 | ¥ | (52,701 | ) | | % | ¥ | 9,208 | ¥ | (58,044 | ) | | % | ||||||||||
Basic net income (loss) per share: |
||||||||||||||||||||||||
Income (loss) from continuing operations |
¥ | 5.09 | ¥ | (302.92 | ) | ¥ | 36.88 | ¥ | (333.70 | ) | ||||||||||||||
Income from discontinued operations,
net of tax |
15.24 | 0.78 | 15.91 | 0.93 | ||||||||||||||||||||
Net income (loss) |
¥ | 20.33 | ¥ | (302.14 | ) | ¥ | 52.79 | ¥ | (332.77 | ) | ||||||||||||||
Diluted net income (loss) per share: |
||||||||||||||||||||||||
Income (loss) from continuing operations |
¥ | 4.28 | ¥ | (302.92 | ) | ¥ | 33.15 | ¥ | (333.70 | ) | ||||||||||||||
Income from discontinued operations,
net of tax |
14.04 | 0.78 | 14.65 | 0.93 | ||||||||||||||||||||
Net income (loss) |
¥ | 18.32 | ¥ | (302.14 | ) | ¥ | 47.80 | ¥ | (332.77 | ) |
Note: | In fiscal 2006, the Company sold a subsidiary engaged in the development of cable TV software, and in the second quarter of fiscal 2007, sold subsidiaries involved in the electronic components business. The operating results of these subsidiaries and the gain on the sales are presented as income from discontinued operations in the above table. Previously reported amounts have been reclassified accordingly. |
- 1 -
- 2 -
Note: | Operating income (loss) in each business segment represents operating income (loss) before elimination of intersegment transactions. |
- 3 -
(In millions of yen) | ||||||||||||||||
Revised | Previous | |||||||||||||||
projections | projections | |||||||||||||||
for fiscal 2007 | for fiscal 2007 | Changes | Results | |||||||||||||
(A) | (B) | (A B) | for fiscal 2006 | |||||||||||||
Operating revenue |
¥ | 820,000 | ¥ | 845,000 | ¥ | (25,000 | ) | ¥ | 754,964 | |||||||
Operating income (loss) |
18,000 | 18,000 | 0 | (16,409 | ) | |||||||||||
Income (loss) before
income taxes |
19,000 | 19,000 | 0 | (71,165 | ) | |||||||||||
Net income (loss) |
¥ | 10,000 | ¥ | 7,500 | ¥ | 2,500 | ¥ | (84,986 | ) | |||||||
- 4 -
| Fluctuations in foreign exchange rates, especially the appreciation of the yen |
| Intensified competition with other companies |
| Larger-than-anticipated declines in prices for our core products |
| Failure of the plasma display market, a main area of focus for us, to grow as anticipated |
| Failure of Blu-ray Disc, a next-generation optical disc format we have adopted, with the view to gaining broader market acceptance |
| Decline in profitability due to a large drop in royalty revenue as a result of the expiration of many of our existing patents relating to laser optical disc technologies |
| Greater-than-expected contraction of consumer markets for car electronics products due to growth in OEM markets |
| Impact of the growing portable car navigation systems market on growth in the in-dash car navigation systems market, a main area of focus for us |
| Substantial dependence of our OEM business on customer business performance and other customer-related factors |
| Product recalls or successful product liability claims brought against us, which could result in a significant cost or a negative impact on our reputation |
| Significant reduction in our production capacity which may be caused by damage to our production facilities due to natural disasters or other events, as production of certain products is concentrated at specific facilities |
- 5 -
- 6 -
- 7 -
I. | Consolidated financial statements for the three months and the six months ended September 30, 2006 | ||
II. | Non-consolidated financial statements for the six months ended September 30, 2006 |
- 8 -
(In millions of yen) | ||||||||||||||||||||
Three months ended September 30 | ||||||||||||||||||||
2006 | 2005 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic |
¥ | 16,152 | 8.6 | % | ¥ | 19,028 | 10.6 | % | 84.9 | % | ||||||||||
Overseas |
71,149 | 37.7 | 62,725 | 34.8 | 113.4 | |||||||||||||||
Home Electronics |
87,301 | 46.3 | 81,753 | 45.4 | 106.8 | |||||||||||||||
Domestic |
28,564 | 15.1 | 26,236 | 14.6 | 108.9 | |||||||||||||||
Overseas |
55,070 | 29.2 | 51,904 | 28.8 | 106.1 | |||||||||||||||
Car Electronics |
83,634 | 44.3 | 78,140 | 43.4 | 107.0 | |||||||||||||||
Domestic |
| | | | | |||||||||||||||
Overseas |
500 | 0.3 | 4,162 | 2.3 | 12.0 | |||||||||||||||
Patent Licensing |
500 | 0.3 | 4,162 | 2.3 | 12.0 | |||||||||||||||
Domestic |
11,262 | 6.0 | 8,455 | 4.7 | 133.2 | |||||||||||||||
Overseas |
5,946 | 3.1 | 7,378 | 4.2 | 80.6 | |||||||||||||||
Others |
17,208 | 9.1 | 15,833 | 8.9 | 108.7 | |||||||||||||||
Domestic |
55,978 | 29.7 | 53,719 | 29.9 | 104.2 | |||||||||||||||
Overseas |
132,665 | 70.3 | 126,169 | 70.1 | 105.1 | |||||||||||||||
Total |
¥ | 188,643 | 100.0 | % | ¥ | 179,888 | 100.0 | % | 104.9 | % | ||||||||||
(In millions of yen) | ||||||||||||||||||||
Six months ended September 30 | ||||||||||||||||||||
2006 | 2005 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic |
¥ | 32,602 | 8.6 | % | ¥ | 36,068 | 10.6 | % | 90.4 | % | ||||||||||
Overseas |
138,150 | 36.3 | 108,890 | 32.1 | 126.9 | |||||||||||||||
Home Electronics |
170,752 | 44.9 | 144,958 | 42.7 | 117.8 | |||||||||||||||
Domestic |
62,882 | 16.5 | 56,177 | 16.6 | 111.9 | |||||||||||||||
Overseas |
112,088 | 29.5 | 104,176 | 30.7 | 107.6 | |||||||||||||||
Car Electronics |
174,970 | 46.0 | 160,353 | 47.3 | 109.1 | |||||||||||||||
Domestic |
| | | | | |||||||||||||||
Overseas |
1,761 | 0.5 | 5,285 | 1.6 | 33.3 | |||||||||||||||
Patent Licensing |
1,761 | 0.5 | 5,285 | 1.6 | 33.3 | |||||||||||||||
Domestic |
21,293 | 5.6 | 15,016 | 4.4 | 141.8 | |||||||||||||||
Overseas |
11,543 | 3.0 | 13,472 | 4.0 | 85.7 | |||||||||||||||
Others |
32,836 | 8.6 | 28,488 | 8.4 | 115.3 | |||||||||||||||
Domestic |
116,777 | 30.7 | 107,261 | 31.6 | 108.9 | |||||||||||||||
Overseas |
263,542 | 69.3 | 231,823 | 68.4 | 113.7 | |||||||||||||||
Total |
¥ | 380,319 | 100.0 | % | ¥ | 339,084 | 100.0 | % | 112.2 | % | ||||||||||
- 9 -
(In millions of yen) | ||||||||||||
Three months ended September 30 | ||||||||||||
% to | ||||||||||||
2006 | 2005 | prior year | ||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 188,143 | ¥ | 175,726 | 107.1 | % | ||||||
Royalty revenue |
500 | 4,162 | 12.0 | |||||||||
Total operating revenue |
188,643 | 179,888 | 104.9 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
142,817 | 143,257 | 99.7 | |||||||||
Selling, general and administrative expenses |
41,212 | 44,364 | 92.9 | |||||||||
Total operating costs and expenses |
184,029 | 187,621 | 98.1 | |||||||||
Operating income (loss) |
4,614 | (7,733 | ) | | ||||||||
Other income (expenses): |
||||||||||||
Interest income |
1,136 | 624 | 182.1 | |||||||||
Foreign exchange loss |
(986 | ) | (320 | ) | 308.1 | |||||||
Interest expense |
(217 | ) | (325 | ) | 66.8 | |||||||
Othernet |
73 | (29,727 | ) | | ||||||||
Total other income (expenses) |
6 | (29,748 | ) | | ||||||||
Income (loss) from continuing operations before
income taxes |
4,620 | (37,481 | ) | | ||||||||
Income taxes |
3,470 | (5,347 | ) | | ||||||||
Minority interest in losses (earnings) of subsidiaries |
(245 | ) | 3,601 | | ||||||||
Equity in losses of affiliated companies |
(18 | ) | (24,305 | ) | 0.1 | |||||||
Income (loss) from continuing operations |
887 | (52,838 | ) | | ||||||||
Income from discontinued operations, net of tax |
2,659 | 137 | | |||||||||
Net income (loss) |
¥ | 3,546 | ¥ | (52,701 | ) | | % | |||||
(In millions of yen) | ||||||||||||
Six months ended September 30 | ||||||||||||
% to | ||||||||||||
2006 | 2005 | prior year | ||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 378,558 | ¥ | 333,799 | 113.4 | % | ||||||
Royalty revenue |
1,761 | 5,285 | 33.3 | |||||||||
Total operating revenue |
380,319 | 339,084 | 112.2 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
283,384 | 269,201 | 105.3 | |||||||||
Selling, general and administrative expenses |
85,244 | 86,547 | 98.5 | |||||||||
Total operating costs and expenses |
368,628 | 355,748 | 103.6 | |||||||||
Operating income (loss) |
11,691 | (16,664 | ) | | ||||||||
Other income (expenses): |
||||||||||||
Interest income |
2,085 | 1,251 | 166.7 | |||||||||
Foreign exchange loss |
(385 | ) | (1,062 | ) | 36.3 | |||||||
Interest expense |
(616 | ) | (720 | ) | 85.6 | |||||||
Othernet |
(151 | ) | (26,958 | ) | 0.6 | |||||||
Total other income (expenses) |
933 | (27,489 | ) | | ||||||||
Income (loss) from continuing operations before
income taxes |
12,624 | (44,153 | ) | | ||||||||
Income taxes |
6,214 | (6,935 | ) | | ||||||||
Minority interest in losses of subsidiaries |
1 | 4,169 | 0.0 | |||||||||
Equity in earnings (losses) of affiliated companies |
22 | (25,158 | ) | | ||||||||
Income (loss) from continuing operations |
6,433 | (58,207 | ) | | ||||||||
Income from discontinued operations, net of tax |
2,775 | 163 | | |||||||||
Net income (loss) |
¥ | 9,208 | ¥ | (58,044 | ) | | % | |||||
- 10 -
(In millions of yen) | ||||||||||||||||||||
September 30 | March 31 | |||||||||||||||||||
Increase/ | Increase/ | |||||||||||||||||||
2006 | 2005 | (Decrease) | 2006 | (Decrease) | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Current assets: |
||||||||||||||||||||
Cash and cash equivalents |
¥ | 109,822 | ¥ | 107,198 | ¥ | 2,624 | ¥ | 121,680 | ¥ | (11,858 | ) | |||||||||
Trade receivables, less allowance |
119,106 | 126,981 | (7,875 | ) | 107,563 | 11,543 | ||||||||||||||
Inventories |
139,030 | 126,594 | 12,436 | 104,226 | 34,804 | |||||||||||||||
Assets held for sale |
| | | 25,577 | (25,577 | ) | ||||||||||||||
Others |
70,826 | 73,878 | (3,052 | ) | 69,626 | 1,200 | ||||||||||||||
Total current assets |
438,784 | 434,651 | 4,133 | 428,672 | 10,112 | |||||||||||||||
Investments and long-term receivables |
27,795 | 25,268 | 2,527 | 29,772 | (1,977 | ) | ||||||||||||||
Property, plant and equipment,
less depreciation |
159,857 | 171,893 | (12,036 | ) | 160,231 | (374 | ) | |||||||||||||
Intangible assets |
19,482 | 22,723 | (3,241 | ) | 20,576 | (1,094 | ) | |||||||||||||
Other assets |
42,232 | 44,518 | (2,286 | ) | 38,795 | 3,437 | ||||||||||||||
Total assets |
¥ | 688,150 | ¥ | 699,053 | ¥ | (10,903 | ) | ¥ | 678,046 | ¥ | 10,104 | |||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||
Short-term borrowings and current
portion of long-term debt |
¥ | 40,270 | ¥ | 55,560 | ¥ | (15,290 | ) | ¥ | 30,370 | ¥ | 9,900 | |||||||||
Trade payables |
120,322 | 104,831 | 15,491 | 102,082 | 18,240 | |||||||||||||||
Liabilities held for sale |
| | | 17,863 | (17,863 | ) | ||||||||||||||
Others |
116,351 | 122,463 | (6,112 | ) | 121,977 | (5,626 | ) | |||||||||||||
Total current liabilities |
276,943 | 282,854 | (5,911 | ) | 272,292 | 4,651 | ||||||||||||||
Long-term debt |
89,225 | 79,512 | 9,713 | 92,970 | (3,745 | ) | ||||||||||||||
Other long-term liabilities |
25,168 | 41,225 | (16,057 | ) | 25,425 | (257 | ) | |||||||||||||
Minority interests |
14,056 | 14,202 | (146 | ) | 14,109 | (53 | ) | |||||||||||||
Shareholders equity: |
||||||||||||||||||||
Common stock |
49,049 | 49,049 | | 49,049 | | |||||||||||||||
Capital surplus |
82,959 | 82,834 | 125 | 82,910 | 49 | |||||||||||||||
Retained earnings |
182,162 | 201,204 | (19,042 | ) | 173,826 | 8,336 | ||||||||||||||
Accumulated other comprehensive loss |
(18,964 | ) | (39,390 | ) | 20,426 | (20,092 | ) | 1,128 | ||||||||||||
Treasury stock |
(12,448 | ) | (12,437 | ) | (11 | ) | (12,443 | ) | (5 | ) | ||||||||||
Total shareholders equity |
282,758 | 281,260 | 1,498 | 273,250 | 9,508 | |||||||||||||||
Total liabilities and
shareholders equity |
¥ | 688,150 | ¥ | 699,053 | ¥ | (10,903 | ) | ¥ | 678,046 | ¥ | 10,104 | |||||||||
Breakdown of accumulated other
comprehensive loss: |
||||||||||||||||||||
Minimum pension liability adjustments |
¥ | (4,650 | ) | ¥ | (11,391 | ) | ¥ | 6,741 | ¥ | (3,680 | ) | ¥ | (970 | ) | ||||||
Net unrealized holding gain on securities |
9,342 | 7,475 | 1,867 | 10,352 | (1,010 | ) | ||||||||||||||
Cumulative foreign currency translation
adjustments |
(23,656 | ) | (35,474 | ) | 11,818 | (26,764 | ) | 3,108 | ||||||||||||
Total accumulated other
comprehensive loss |
¥ | (18,964 | ) | ¥ | (39,390 | ) | ¥ | 20,426 | ¥ | (20,092 | ) | ¥ | 1,128 | |||||||
- 11 -
(In millions of yen) | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||
Common | Capital | Retained | Comprehensive | Treasury | Shareholders | |||||||||||||||||||
Stock | Surplus | Earnings | Loss | Stock | Equity | |||||||||||||||||||
Balance at March 31, 2005 |
¥ | 49,049 | ¥ | 82,735 | ¥ | 260,556 | ¥ | (47,669 | ) | ¥ | (12,432 | ) | ¥ | 332,239 | ||||||||||
Net loss |
(84,986 | ) | (84,986 | ) | ||||||||||||||||||||
Other comprehensive income |
27,577 | 27,577 | ||||||||||||||||||||||
Value ascribed to stock options |
175 | 175 | ||||||||||||||||||||||
Cash dividends (¥10 per share) |
(1,744 | ) | (1,744 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
(11 | ) | (11 | ) | ||||||||||||||||||||
Balance at March 31, 2006 |
¥ | 49,049 | ¥ | 82,910 | ¥ | 173,826 | ¥ | (20,092 | ) | ¥ | (12,443 | ) | ¥ | 273,250 | ||||||||||
Net Income |
9,208 | 9,208 | ||||||||||||||||||||||
Other comprehensive income |
1,128 | 1,128 | ||||||||||||||||||||||
Value ascribed to stock options |
49 | 49 | ||||||||||||||||||||||
Cash dividends (¥5 per share) |
(872 | ) | (872 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
(5 | ) | (5 | ) | ||||||||||||||||||||
Balance at September 30, 2006 |
¥ | 49,049 | ¥ | 82,959 | ¥ | 182,162 | ¥ | (18,964 | ) | ¥ | (12,448 | ) | ¥ | 282,758 | ||||||||||
(In millions of yen) | ||||||||||||||||
Three months | Six months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
I. Operating activities: |
||||||||||||||||
Net income (loss) |
¥ | 3,546 | ¥ | (52,701 | ) | ¥ | 9,208 | ¥ | (58,044 | ) | ||||||
Depreciation and amortization |
9,348 | 11,575 | 18,500 | 24,122 | ||||||||||||
(Increase) decrease in trade receivables |
1,765 | (15,718 | ) | (9,965 | ) | 7,160 | ||||||||||
(Increase) decrease in inventories |
(15,446 | ) | 1,396 | (32,687 | ) | (14,635 | ) | |||||||||
Increase in trade payables |
9,519 | 5,607 | 17,184 | 8,016 | ||||||||||||
Increase (decrease) in other accrued liabilities |
8,921 | 10,822 | (7,866 | ) | 2,737 | |||||||||||
Other |
(3,348 | ) | 41,299 | (4,229 | ) | 31,864 | ||||||||||
Net cash provided by (used in) operating activities |
14,305 | 2,280 | (9,855 | ) | 1,220 | |||||||||||
II. Investing activities: |
||||||||||||||||
Payment for purchase of fixed assets |
(12,157 | ) | (10,355 | ) | (20,477 | ) | (19,282 | ) | ||||||||
Proceed from sale of discontinued operations |
10,862 | | 10,862 | | ||||||||||||
Other |
1,584 | 3,354 | 1,857 | 7,357 | ||||||||||||
Net cash provided by (used in) investing activities |
289 | (7,001 | ) | (7,758 | ) | (11,925 | ) | |||||||||
III. Financing activities: |
||||||||||||||||
Increase (decrease) in short-term borrowings
and long-term debt |
5,742 | (3,183 | ) | 7,198 | 2,866 | |||||||||||
Dividends paid |
| | (436 | ) | (2,180 | ) | ||||||||||
Other |
(907 | ) | (1,034 | ) | (1,727 | ) | (2,073 | ) | ||||||||
Net cash provided by (used in) financing activities |
4,835 | (4,217 | ) | 5,035 | (1,387 | ) | ||||||||||
Effect of exchange rate changes on cash
and cash equivalents |
1,575 | 1,366 | 720 | 2,609 | ||||||||||||
Net increase (decrease) in cash and cash equivalents |
21,004 | (7,572 | ) | (11,858 | ) | (9,483 | ) | |||||||||
Cash and cash equivalents, beginning of period |
88,818 | 114,770 | 121,680 | 116,681 | ||||||||||||
Cash and cash equivalents, end of period |
¥ | 109,822 | ¥ | 107,198 | ¥ | 109,822 | ¥ | 107,198 | ||||||||
Free cash flow (I + II) |
¥ | 14,594 | ¥ | (4,721 | ) | ¥ | (17,613 | ) | ¥ | (10,705 | ) | |||||
- 12 -
(In millions of yen) | ||||||||||||||||||||||||
Three months ended September 30 | ||||||||||||||||||||||||
2006 | 2005 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Home Electronics |
¥ | 87,531 | ¥ | (3,848 | ) | ¥ | 82,264 | ¥ | (13,140 | ) | 106.4 | % | 29.3 | % | ||||||||||
Car Electronics |
84,124 | 5,586 | 78,516 | 2,896 | 107.1 | 192.9 | ||||||||||||||||||
Patent Licensing |
500 | 187 | 4,201 | 3,598 | 11.9 | 5.2 | ||||||||||||||||||
Others |
25,989 | 2,566 | 25,099 | (780 | ) | 103.5 | | |||||||||||||||||
Total |
198,144 | 4,491 | 190,080 | (7,426 | ) | 104.2 | | |||||||||||||||||
Corporate and Eliminations |
(9,501 | ) | 123 | (10,192 | ) | (307 | ) | | | |||||||||||||||
Consolidated |
¥ | 188,643 | ¥ | 4,614 | ¥ | 179,888 | ¥ | (7,733 | ) | 104.9 | % | | % | |||||||||||
(In millions of yen) | ||||||||||||||||||||||||
Six months ended September 30 | ||||||||||||||||||||||||
2006 | 2005 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Home Electronics |
¥ | 171,191 | ¥ | (4,245 | ) | ¥ | 145,772 | ¥ | (25,498 | ) | 117.4 | % | 16.6 | % | ||||||||||
Car Electronics |
175,913 | 13,118 | 161,124 | 8,210 | 109.2 | 159.8 | ||||||||||||||||||
Patent Licensing |
1,761 | 974 | 5,324 | 3,969 | 33.1 | 24.5 | ||||||||||||||||||
Others |
50,224 | 2,804 | 47,013 | (1,666 | ) | 106.8 | | |||||||||||||||||
Total |
399,089 | 12,651 | 359,233 | (14,985 | ) | 111.1 | | |||||||||||||||||
Corporate and Eliminations |
(18,770 | ) | (960 | ) | (20,149 | ) | (1,679 | ) | | | ||||||||||||||
Consolidated |
¥ | 380,319 | ¥ | 11,691 | ¥ | 339,084 | ¥ | (16,664 | ) | 112.2 | % | | % | |||||||||||
(In millions of yen) | ||||||||||||||||||||||||
Six months ended September 30 | ||||||||||||||||||||||||
2006 | 2005 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Japan |
¥ | 322,597 | ¥ | 5,525 | ¥ | 283,600 | ¥ | (15,923 | ) | 113.8 | % | | % | |||||||||||
North America |
99,623 | 4,271 | 92,524 | (1,740 | ) | 107.7 | | |||||||||||||||||
Europe |
80,026 | 1,528 | 66,311 | (1,315 | ) | 120.7 | | |||||||||||||||||
Other Regions |
175,437 | 2,862 | 155,728 | 3,612 | 112.7 | 79.2 | ||||||||||||||||||
Total |
677,683 | 14,186 | 598,163 | (15,366 | ) | 113.3 | | |||||||||||||||||
Corporate and Eliminations |
(297,364 | ) | (2,495 | ) | (259,079 | ) | (1,298 | ) | | | ||||||||||||||
Consolidated |
¥ | 380,319 | ¥ | 11,691 | ¥ | 339,084 | ¥ | (16,664 | ) | 112.2 | % | | % | |||||||||||
- 13 -
1. | The Companys consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. | ||
2. | The consolidated financial statements include the accounts of the parent company and 118 subsidiaries and the investments in 3 affiliated companies accounted for on an equity basis. | ||
3. | In fiscal 2006, the Company sold a subsidiary engaged in the development of cable TV software, and in the second quarter of fiscal 2007, sold subsidiaries involved in the electronic components business. The operating results of these subsidiaries and the gain on the sales are presented as income from discontinued operations in the consolidated statements of operations. Reclassifications have been made to previously reported operating revenue by segment, consolidated statements of operations and segment information to conform to this presentation. | ||
Summarized financial information of the discontinued operations for the three months and the six months ended September 30, 2005 and 2006 is as follows: |
(In millions of yen) | ||||||||||||||||
Three months | Six months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Operating revenue |
¥ | 2,798 | ¥ | 5,827 | ¥ | 10,442 | ¥ | 10,814 | ||||||||
Operating income |
151 | 214 | 425 | 276 | ||||||||||||
Income before income taxes |
142 | 221 | 324 | 283 | ||||||||||||
Gain on sales of discontinued
operations |
2,488 | | 2,488 | | ||||||||||||
Income taxes |
(29 | ) | 84 | 37 | 120 | |||||||||||
Income from discontinued operations |
¥ | 2,659 | ¥ | 137 | ¥ | 2,775 | ¥ | 163 | ||||||||
- 14 -
II. | NON-CONSOLIDATED FINANCIAL STATEMENTS | |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 |
(In millions of yen) | ||||||||||||||||||||
Six months ended September 30 | ||||||||||||||||||||
2006 | 2005 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic |
¥ | 28,748 | 10.6 | % | ¥ | 31,923 | 13.0 | % | 90.1 | % | ||||||||||
Export |
105,716 | 39.0 | 84,303 | 34.3 | 125.4 | |||||||||||||||
Home Electronics |
134,464 | 49.6 | 116,226 | 47.3 | 115.7 | |||||||||||||||
Domestic |
62,681 | 23.2 | 55,997 | 22.8 | 111.9 | |||||||||||||||
Export |
73,391 | 27.1 | 73,053 | 29.7 | 100.5 | |||||||||||||||
Car Electronics |
136,072 | 50.3 | 129,051 | 52.5 | 105.4 | |||||||||||||||
Domestic |
338 | 0.1 | 494 | 0.2 | 68.5 | |||||||||||||||
Export |
10 | 0.0 | 47 | 0.0 | 23.0 | |||||||||||||||
Others |
349 | 0.1 | 541 | 0.2 | 64.5 | |||||||||||||||
Domestic |
91,768 | 33.9 | 88,416 | 36.0 | 103.8 | |||||||||||||||
Export |
179,118 | 66.1 | 157,403 | 64.0 | 113.8 | |||||||||||||||
Total |
¥ | 270,886 | 100.0 | % | ¥ | 245,819 | 100.0 | % | 110.2 | % | ||||||||||
(In millions of yen) | ||||||||||||||||
Six months ended September 30 | ||||||||||||||||
2006 | 2005 | |||||||||||||||
% to | % to | |||||||||||||||
Amount | net sales | Amount | net sales | |||||||||||||
Net sales |
¥ | 270,886 | 100.0 | % | ¥ | 245,819 | 100.0 | % | ||||||||
Cost of sales |
234,989 | 86.7 | 213,720 | 86.9 | ||||||||||||
Selling, general and administrative expenses |
41,825 | 15.5 | 41,592 | 17.0 | ||||||||||||
Operating income (loss) |
(5,928 | ) | (2.2 | ) | (9,493 | ) | (3.9 | ) | ||||||||
Non-operating income net |
425 | 0.2 | 54 | 0.1 | ||||||||||||
Ordinary income (loss) |
(5,503 | ) | (2.0 | ) | (9,439 | ) | (3.8 | ) | ||||||||
Other income (expenses)net |
4,381 | 1.6 | 357 | 0.1 | ||||||||||||
Income (loss) before income taxes |
(1,122 | ) | (0.4 | ) | (9,081 | ) | (3.7 | ) | ||||||||
Income taxes |
(308 | ) | (0.1 | ) | 5,679 | 2.3 | ||||||||||
Net income (loss) |
¥ | (813 | ) | (0.3 | )% | ¥ | (14,761 | ) | (6.0 | )% | ||||||
- 15 -
September 30 | March 31 | |||||||||||
2006 | 2005 | 2006 | ||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash |
¥ | 43,289 | ¥ | 46,162 | ¥ | 50,305 | ||||||
Notes and accounts receivabletrade |
49,847 | 46,605 | 46,034 | |||||||||
Inventories |
35,298 | 29,044 | 30,015 | |||||||||
Other current assets |
48,937 | 31,020 | 40,105 | |||||||||
Total current assets |
177,373 | 152,832 | 166,461 | |||||||||
Fixed assets: |
||||||||||||
Tangible |
56,273 | 52,674 | 55,537 | |||||||||
Intangible |
28,366 | 28,523 | 28,752 | |||||||||
Investments and others |
200,814 | 199,361 | 201,979 | |||||||||
Total fixed assets |
285,454 | 280,559 | 286,269 | |||||||||
Total assets |
¥ | 462,827 | ¥ | 433,392 | ¥ | 452,730 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Notes and accounts payabletrade |
¥ | 76,040 | ¥ | 53,827 | ¥ | 56,175 | ||||||
Accrued expenses |
53,505 | 37,471 | 61,190 | |||||||||
Other current liabilities |
42,546 | 15,350 | 40,512 | |||||||||
Total current liabilities |
172,091 | 106,649 | 157,879 | |||||||||
Long-term liabilities |
71,860 | 73,279 | 73,351 | |||||||||
Total liabilities |
243,951 | 179,929 | 231,230 | |||||||||
Shareholders equity |
| 253,463 | 221,500 | |||||||||
Total liabilities and shareholders equity |
| ¥ | 433,392 | ¥ | 452,730 | |||||||
Net assets |
||||||||||||
Shareholders equity |
¥ | 212,834 | | | ||||||||
Difference of appreciation and conversion |
6,041 | | | |||||||||
Total net assets |
218,875 | | | |||||||||
Total liabilities and net assets |
¥ | 462,827 | | | ||||||||
- 16 -
Shareholders Equity | ||||||||||||||||||||||||||||||||
Capital Surplus | Retained Earnings | |||||||||||||||||||||||||||||||
Other Retained | ||||||||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||||||
Retained | ||||||||||||||||||||||||||||||||
Additional | Other | Earnings | Total | |||||||||||||||||||||||||||||
Common | Paid-in | Capital | Legal | Voluntary | Brought | Treasury | Shareholders | |||||||||||||||||||||||||
Stock | Capital | Surplus | Reserve | Reserves | Forward | Stock | Equity | |||||||||||||||||||||||||
Balance at March 31,
2006 |
¥ | 49,048 | ¥ | 81,278 | ¥ | 36 | ¥ | 6,140 | ¥ | 136,931 | ¥ | (46,902 | ) | ¥ | (12,442 | ) | ¥ | 214,090 | ||||||||||||||
Changes in the period: |
||||||||||||||||||||||||||||||||
Issuance of new
shares |
| |||||||||||||||||||||||||||||||
Reversal of
voluntary reserves |
(47,800 | ) | 47,800 | | ||||||||||||||||||||||||||||
Dividends from
surplus |
(436 | ) | (436 | ) | ||||||||||||||||||||||||||||
Net income (loss) |
(813 | ) | (813 | ) | ||||||||||||||||||||||||||||
Disposal of
treasury stock |
0 | 0 | 0 | |||||||||||||||||||||||||||||
Purchase of
treasury stock |
(7 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net change of items
other than
shareholders
equity |
| |||||||||||||||||||||||||||||||
Total changes in the
period |
| | 0 | | (47,800 | ) | 46,550 | (7 | ) | (1,255 | ) | |||||||||||||||||||||
Balance at September
30, 2006 |
¥ | 49,048 | ¥ | 81,278 | ¥ | 36 | ¥ | 6,140 | ¥ | 89,131 | ¥ | (351 | ) | ¥ | (12,449 | ) | ¥ | 212,834 | ||||||||||||||
Difference of Appreciation and | ||||||||||||||||
Conversion | ||||||||||||||||
Total | ||||||||||||||||
Net | Difference of | |||||||||||||||
Unrealized | Deferred | Appreciation | ||||||||||||||
Gains on | Profit | and | Total | |||||||||||||
Securities | on Hedges | Conversion | Net Assets | |||||||||||||
Balance at March 31,
2006 |
¥ | 7,409 | | ¥ | 7,409 | ¥ | 221,500 | |||||||||
Changes in the period: |
||||||||||||||||
Issuance of new
shares |
| | ||||||||||||||
Reversal of
voluntary reserves |
| | ||||||||||||||
Dividends from
surplus |
| (436 | ) | |||||||||||||
Net income (loss) |
| (813 | ) | |||||||||||||
Disposal of
treasury stock |
| 0 | ||||||||||||||
Purchase of
treasury stock |
| (7 | ) | |||||||||||||
Net change of items
other than
shareholders
equity |
(1,120 | ) | (247 | ) | (1,368 | ) | (1,368 | ) | ||||||||
Total changes in the
period |
(1,120 | ) | (247 | ) | (1,368 | ) | (2,625 | ) | ||||||||
Balance at September
30, 2006 |
¥ | 6,288 | ¥ | (247 | ) | ¥ | 6,041 | ¥ | 218,876 | |||||||
- 17 -
(i) | Tokorozawa Plant (Tokorozawa City, Saitama, Japan) | |||||
Land: | 34,187.14 m2 (approx. 368,000 sq ft) | |||||
Buildings: | 47,620.73 m2 (approx. 513,000 sq ft) | |||||
(ii) | Omori Plant (in part) (Ota-ku, Tokyo, Japan) | |||||
Land: | 7,034.41 m2 (approx. 76,000 sq ft) | |||||
Buildings: | 14,838.35 m2 (approx. 160,000 sq ft) | |||||
Total book value (estimated amount at end of March 2007): | ||||||
3,500 million yen | ||||||
Total sales price: | ||||||
15,700 million yen | ||||||
Note: Pioneer expects losses on disposal of some of machinery and equipment of the above plants. Such amount is, however, yet to be determined. |
Name: | HASEKO Corporation | |||
Headquarters: | Minato-ku, Tokyo, Japan | |||
President: | Mr. Takashi Iwao | |||
Paid-in capital: | 50,000 million yen | |||
Principal businesses: | Construction, engineering, real estate, | |||
leasing and management, and hotel businesses | ||||
Note: Pioneer has no special interests in the buyer. |
- 1 -
September 2006: | Resolution of the board of directors | |||
Conclusion of the agreement with the buyer | ||||
End of March 2007: | Transfer of property rights | |||
End of June 2007: | Hand over of properties |
4. | Impact on Business Forecasts: | |
The gain on the above sales will be recorded during the fiscal year ending March 31, 2008, in which the hand over is scheduled. |
- 2 -