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Management Policies and Medium-term Management Goals

Basic Management Policies

As stated in our corporate commitment, “Clarion strives to improve society by seeking to develop the relationship between sound, information and human interaction, and by creating products to meet those needs” and carries out activities accordingly.
Clarion is dramatically shifting its business from an in-vehicle device manufacturer to an “In-Vehicle Information Solution Provider”. Setting our eyes on the medium to long term, we are striving to lay a firm foundation for future growth by strengthening “business in growing segments”, engaging in “global business management” and implementing “structural reform for growth in the medium term”.

Targeted Management Indicators

The Clarion Group emphasizes consolidated operations in order to enhance corporate value, and accordingly, promotes greater consolidated earnings power and consolidated cash flow management. The Group aims to achieve its goals of consolidated net sales of ¥250,000 million and a consolidated operating income margin of 5% or higher in the fiscal year ending March 31, 2017.

Issues to Be Addressed

The automobile industry has witnessed an accelerating transition in emphasis from hardware to software, including smartphone connectivity and full-fledged entry of participants from the IT industry. In addition, there has been a rapid expansion in needs in the field of safety and security aimed at automated driving and driving support. Amid this market environment, Clarion will not only strengthen its lineup of existing products but also more closely focus its attention on such growing segments of “safety and security” and products with “connectivity”.
In more strongly promoting its 3D Strategies (3Dimensions of products, territories and customers), Clarion intends to identify market trends and customer needs on a global scale and introduce appealing products and solutions ahead of its competitors.
It is expected that the car electronics industry will undergo a significant transition during the fiscal year ending March 31, 2015 accompanied by intensifying competition. In this business climate, Clarion aims to strengthen its business foundation that will support its future growth by augmenting its earnings management structure and implementing structural reforms in such areas as R&D processes.
Amid drastic changes in the surrounding business environment, we will fulfill our corporate social responsibilities as a member of the Hitachi Group and aim to achieve growth as a company that is truly needed by society.
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