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Management Policies and Medium-term Management Goals

References to future events in this text are based on the Clarion Group’s predictions as of the end of this consolidated fiscal year.

Basic Management Policies

The basic philosophy of the Clarion group’s activities is “to improve society by seeking to develop the relationship between sound, information, and human interaction, and by creating products that meet those needs.”

Clarion is dramatically shifting its business away from being an in-vehicle device manufacturer, towards becoming a Solution Provider for In-Vehicle Information Systems. Setting our sights on the medium to long term, we are working to maximize corporate value by “accelerating business portfolio transformation,” “expanding business in the global market,” and "promoting business restructuring.”

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, targeting a consolidated operating profit margin in excess of 5%.

* In order to give a more appropriate representation of the true state of operations, from March 2017 onwards the value of net sales, cost of goods sold and also distribution costs and general and administrative expenses are subtracted from revenues to give an "adjusted operating income" as a profit indicator.

Issues to Be Addressed

In the automotive parts industry, to which our group belongs, innovations such as connected vehicles, autonomous driving, sharing vehicles, and electrified vehicles, abbreviated as CASE, are driving the transformation toward a new society of mobility. In addition, the competitive environment is intensifying globally as mega suppliers, mainly based in the US and Europe, and companies from other industries also enter the market.

In this market environment we are promoting the three strategies given in the medium-term management plan to ensure continued growth and improved corporate value.

*CASE: An abbreviation consisting of the first letters of “Connected, Autonomous, Sharing, and Electrification”


Accelerating Business Portfolio Transformation

In order to prevail amid a transforming mobility society and global competition, we will accelerate the transformation of our business portfolio to base our revenue on products and services from our Safety & Information Systems business and a Solutions business that focuses on connected vehicles.


Expanding Business in Global Markets

In emerging Asian countries, such as China, we are aiming for increased sales by outsourcing the development of car navigation and car audio systems, which are two areas in which we expect growth into the future. Furthermore, we are aiming to expand business by consolidating Safety & Information Systems business, and our Solutions business, etc., which are growing products, in Japan, Europe and the Americas. By doing this we will deliver added value based on the characteristics of each region.


Promoting Business Restructuring

As we continue to promote the selection and focus of management resources, we will drive forward resource shifts to growing businesses and regions, production in optimal locations in order to form efficient and streamlined supply chains, the streamlining of operations, and general optimization.

Amidst the considerable changes we face in our business environment, we will continue to fulfill our corporate social responsibilities as part of the Hitachi Group and aim to achieve growth as a company with the values required by society.

  1. Home
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  4. Management Policies and Medium-term Management Goals

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