To Our Stakeholders
I am Koichi Moriya, the new President and CEO appointed in June 2018.
I greatly appreciate your ongoing support.
In fiscal 2018, ended March 31, 2018, consolidated net sales declined 5.5% year on year to ¥365.4 billion, mainly from a decrease in sales of the OEM business of Car Electronics. Operating income was ¥1.2 billion, a 71.3% decrease year on year, reflecting a decrease in net sales, despite reduced selling, general and administrative expenses and an improvement in the cost of sales ratio. Net loss attributable to owners of Pioneer Corporation was ¥7.1 billion, compared with a net loss of ¥5.1 billion for fiscal 2017, mainly due to the decrease in operating income and the recording of foreign exchange loss.
Going forward, in the OEM business, we will implement significant revision measures examining and discussing the business structure to turn profitable at an early stage, which may include establishment of a joint venture with business partners.
In the consumer market business, we aim to stimulate market demand and differentiate our products from our competitors in our existing businesses by launching new products with enhanced smartphone-link functions in a timely manner and pursuing sound-centric entertainment. We will also proactively enhance and expand our new businesses that combine Pioneer's strengths in both hardware and software, including telematics services for automobile insurance and solution businesses.
In the map business and autonomous driving field, we are currently preparing for the roll-out of the 2018 model of the 3D-LiDAR sensor essential for autonomous driving, aiming for its commercialization. Furthermore, we aim to strengthen our alliance with HERE Technologies, a Netherlands-based global provider of mapping and location services, as well as proceed with the development of high-definition maps. Through such measures, Pioneer is steadily working to become an “essential company” in an era of autonomous driving.
In fiscal 2019, we will make efforts to set a course toward improved profitability through the implementation of significant measures in the OEM business, to steadily solidify autonomous driving-related business as a means for future growth. Furthermore, we will strive to rebuild a new Pioneer, mainly through reallocation of management resources based on profitability and future growth.
I ask for the continued strong support of all of our stakeholders.
President and CEO