09 13-12 pioneer results-q1-1

Pioneer Corporation

Business Resultsfor First Quarter of Fiscal 2013

Susumu Kotani, President and CEOAugust 7, 2012

Main Points of Today’s Presentation2

1. Business Results for First Quarter of FY2013Sales rose and profits declined year on year in the first quarter. The primary reason is that sales and profits rose in the Car Electronics business due to recovery in car OEM sales, while sales in the optical disc business fell sharply as a result of a change in the business environment.

2. Business Forecasts for FY2013Although the Company forecasts continued favorable results in the Car Electronics business in the second quarter and beyond, the first-half and full-year business forecasts have been revised as follows, reflecting a review of the optical disc business plan and the impact of currency exchange:First-half — Net sales: ¥230.0 billion Operating income: ¥6.0 billion

Net income: ¥1.0 billionFull-year — Net sales: ¥500.0 billion Operating income: ¥20.0 billion

Net income: ¥8.5 billion

Today’s Agenda

3

1. Business Results for First Quarter of FY20132. Business Forecasts for FY20133. Topics

Cautionary Statement with Respect to Forward-Looking StatementsStatements made in this presentation with respect to our current plans, estimates, strategies and beliefs, and other statements that are not historical facts are forward-looking statements about our future performance. These statements are based on management’s assumptions and beliefs in light of the information currently available to it. We caution that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. It is not our obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We disclaim any such obligation. Risks and uncertainties that might affect us include, but are not limited to: (i) general economic conditions in our markets, particularly levels of consumer spending, and levels of demand in the major industrial sectors which we serve; (ii) exchange rates, particularly between the Japanese yen and the euro, the U.S. dollar, and other currencies in which we make significant sales or in which our assets and liabilities are denominated; (iii) our ability to continuously design and develop and win acceptance for our products in extremely competitive markets; (iv) our ability to successfully implement our business strategies; (v) the success of our joint ventures, alliances and other business relationships with third parties; (vi) our ability to access funding; (vii) our continued ability to devote sufficient resources to research and development, and capital expenditure; (viii) our ability to ensure the quality of our products; (ix) conditions in which we are able to continuously procure key parts essential to our manufacturing operations; and (x) the outcome of contingencies.

4

1. Business Results for First Quarter of FY2013

-

-

30.7%

113.6%

% to Prior Year

1.6-1.0Ordinary Income/Loss

0.3-2.8Net Income/Loss

2.00.6Operating Income

98.1111.4Net Sales

Prior YearFY13/1Q

117.40

81.74

1 Euro

1 US$ -1.9%80.20AverageCurrency

Rate -14.1%102.91

0.4%

256.30

1.4％

0.91 -9.51-8.60Net Income per Share

-15.2%-13.8%ROE

-3.5%

236.17

-3.9%

-20.13

ROA

Book-value per Share

FY12/1Q FY13/1Q

(yen)

(yen)

(billion yen)

Operating Income

Net Sales

55.5Overseas49.7

55.9Japan48.5

98.1

111.4

2.00.6

Consolidated Results for First Quarter of FY2013

5

+2.0 +7.5 -2.8-2.7 -1.0 +0.6-2.3

Operating Income Structure Breakdown(billion yen)

Lower Gross Profit Margin

Increased SG&AImpact of Currency Exchange

6

Profit Variance due to Increased/Decreased

Net Sales

Car Electronics Home Electronics & Others

Decrease of 1.4 billion yenFY12/1Q

Operating Income

FY13/1QOperating

Income

57.581.0

30.421.310.29.0

111.498.1

FY12/1Q FY13/1Q

Segment Comparison for the First Quarter of FY2013

7

Net Sales

Car Electronics

Home Electronics

Others

Operating Income/Loss

(billion yen)

FY12/1Q FY13/1Q Change

Car Electronics 1.9 5.0 +3.1

Home Electronics 0.4 -2.8 -3.1

Others -0.5 -1.2 -0.6

Adjustments 0.3 -0.4 -0.7

Total 2.0 0.6 -1.4

Significant improvement in profitability as car OEM sales more than doubled year on year

Profitability worsened as a result of factors including a sharp decrease in sales of optical disc business due to the absence of the special demand associated with the shift to digital terrestrial broadcasting in Japan in the first quarter of FY2012Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among

segments.

40.1 Overseas

30.4

41.0

Japan27.1

57.5

81.0

1.95.0

OEM Ratio to Net Sales: 53% (FY12/1Q: 31%)< Net Sales >

OEM car navigation systems and OEM car audio products

Increase Factors

Consumer-market car navigation systems

Decrease Factor

141% (Japan 151%, Overseas 132%)% to Prior Year

< Operating Income >

Higher profit due to increased net sales (+7.5 billion yen)

Increase Factor

Lower gross profit margin (-2.5 billion yen), increased SG&A (-1.2 billion yen), and impact of currency exchange (-0.6 billion yen)

Decrease Factors

Increase of 3.1 billion yenYear-on-Year

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

Main products are:Car navigation systems, Car stereos, Car AV systems, and Car speakers.

Quarterly Net sales & Operating Income: Car Electronics

8

Net Sales

Operating Income

(billion yen)

FY12/1Q FY13/1Q

12.6

Overseas15.0

8.7

Japan15.5

30.4

21.3

0.4

-2.8 Main products are:Audio systems, Audio components, DJ equipment,Equipment for cable-TV systems, Blu-ray Disc players, Blu-ray Disc drives, DVD players, DVD drives, and AV accessories.

< Net Sales >

AV receivers and AV systemsIncrease Factors

Optical disc drive-related products, and equipment for cable-TV systems

Decrease Factors

70％ （Japan 56%, Overseas 84%)% to Prior Year

< Operating Income/Loss >

Lower profit due to decreased net sales (-1.2 billion yen), lower gross profit margin (-0.9 billion yen), increased SG&A (-0.6 billion yen), and impact of currency exchange (-0.4 billion yen)

Decrease Factors

Worsening of 3.1 billion yenYear-on-Year

Quarterly Net sales & Operating Income/Loss: Home Electronics

9

Net Sales

Operating Income/Loss

(billion yen)

FY12/1Q FY13/1Q

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

Overseas4.3

2.8

Japan 5.9

6.2

9.010.2

-1.2-0.5

Main products and services are:Factory automation systems, Speaker units, Electronic devices and parts, Organic light-emitting diode displays, Telephones, Business-use AV systems, Map software, and Licensing of patents related to laser optical disc technologies.

< Net Sales >

Map softwareIncrease Factor

Factory automation systems, and electronic devices and parts

Decrease Factors

88％ （Japan 105%, Overseas 65%)% to Prior Year

< Operating Loss >

Decreased SG&A (+0.1 billion yen)Increase Factor

Lower profit due to decreased net sales (-0.2 billion yen), and lower gross profit margin (-0.5 billion yen)

Decrease Factors

Worsening of 0.6 billion yenYear-on-Year

Quarterly Net sales & Operating Loss: Others

10

Operating Loss

Net Sales

(billion yen)

FY12/1Q FY13/1Q

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

25.623.3

0

10

20

30

FY12/1Q FY13/1Q

11.1 10.6

0

10

20

30

FY12/1Q FY13/1Q

21.7

13.0

0

10

20

30

FY12/1Q FY13/1Q

48.555.9

0

20

40

60

80

FY12/1Q FY13/1Q

FY13/1Q compared to prior yearYen basis: 96%Local currency basis: 108%

Increase FactorsAV systems, AV receivers and OEM car audio products

Decrease FactorsConsumer-market car navigationsystems, and consumer-marketcar audio products

(billion yen)

FY13/1Q compared to prior yearYen basis: 166%Local currency basis: 170%

Increase FactorsOEM car audio products, OEMcar navigation systems, and AV receivers

Decrease FactorOptical disc drive-related products

FY13/1Q compared to prior year115%

Increase FactorsOEM car navigation systems, OEM car audio products, andelectronic devices and parts

Decrease FactorsOptical disc drive-related products, and consumer-market car navigation systems

FY13/1Q compared to prior yearYen basis: 91%Local currency basis: 96%

Increase FactorOEM car audio products

Decrease FactorsOptical disc drive-related products,and electronic devices and parts

Quarterly Net Sales by Geographic Segment

11

North AmericaJapan

Europe Other Areas

First Quarter of FY2013 : Summary of Consolidated Statements of Cash Flows(billion yen)

-0.3-1.4Foreign currency translation adjustments on cash and cash equivalents

0.80.6Interest expenses

0.30.6Increase in accrued pension and severance costs

-12.8-14.7Net increase/decrease in cash and cash equivalents

-11.8-12.8Free cash flows

0.1-0.1Loss (gain) on sales and disposal of noncurrent assets

2.89.0Trade receivables

-8.7-11.2Inventories

-5.0-3.2Accrued expenses

-1.5-3.9Trade payables

-52.5

34.7

-0.7

-4.6

-7.2

-4.2

6.2

1.9

FY2012 1Q

0.3Others

6.0Depreciation and amortization

31.2Balance of cash and cash equivalents

-57.4Net cash balance

-0.5Cash flows from financing activities

-9.7Cash flows from investing activities

-3.2Cash flows from operating activities

-1.4Income (loss) before income taxes and minority interests

FY2013 1Q

12

14.0

-7.2

18.2

-8.5 -3

.2

15.7

5.3

-4.6

-5.5

-3.8

-9.7

-7.8

-12.8-12.3

12.7

-11.8

19.3

7.8

FY11/4Q FY12/1Q FY12/2Q FY12/3Q FY12/4Q FY13/1Q

Cash Flows f rom Operating Activ ities

Cash Flows f rom Inv esting Activ ities

Free Cash Flows

75.0

63.964.167.4 66.9

62

5057

61

50

June/11 Sep./11 Dec./11 Mar./12 June/12

First Quarter of FY2013: Inventories

13

(billion yen)

(turnover days)

2. Business Forecasts for FY2013

14

10.0

20.0

24.0

525.0

PreviousForecasts

(May 10, 2012)

1.5

5.1

7.0

213.7

Prior-yearResults

2.5

5.5

7.5

245.5

Previous Forecasts

(May 10, 2012)

3.7

9.9

12.5

436.8

Prior-yearResults

Full YearFirst Half

8.516.020.0

500.0

Revised Forecasts

1.0Net Income

4.0Ordinary income

6.0Operating Income

230.0Net Sales

Revised Forecasts

10580

Previous Forecasts

(May 10, 2012)

Prior-yearResults

Revised Forecasts

79.08771 US$CurrencyRate 108.98951 Euro

Full YearPrior-yearResults

Revised Forecasts

Full Year

11.4326.47Net Income per Share

4.3%9.9%ROE

2.7%

271.28

1.2%

261.98

ROA

Book-value per Share

Consolidated Business Forecasts for FY2013(billion yen)

15

(yen) (yen)

Note :In case of 1 yen appreciation against US$ and Euro, 9months impact on: Net sales: US$: - 2,230 million yen / Euro: - 430 million yen; Operating income: US$: 160 million yen / Euro: - 270 million yen.

16

525.00

49.5141.5334.0

PreviousForecasts

OthersAdjustment

Home Electronics

Total

Car Electronics

24.00.5

04.5

19.0

PreviousForecasts

OthersAdjustment

Home Electronics

Total

Car Electronics

TotalReview of

Optical Disc Business

Impact of Currency Exchange

-4.000

-3.0-1.0

-2.000

-2.00

-2.000

-1.0-1.0

-14.000

-14.00

Review of Optical Disc

Business

-11.00

-0.5-4.0-6.5

Impact of Currency Exchange

-25.00

-0.5-18.0-6.5

Total

500.00

49.0123.5327.5

Revised Forecasts

20.00.5

01.5

18.0

Revised Forecasts

Revision of Business Forecasts for FY2013 (Full Year)

《Net Sales》

《Operating Income》

(billion yen)

Overseas134.3

174.0 167.5

Japan136.4

160.0 160.0

334.0 327.5

270.8

19.0

10.3

18.0

FY12Results

FY13PreviousForecasts

FY13Revised

Forecasts

Forecasts for FY2013: Car Electronics

17

(billion yen)

Net Sales

Operating Income

OEM Ratio to Net Sales: 50% (FY12: 43%)< Net Sales >

98% (Japan 100%, Overseas 96%)% to Prev. Forecasts

OEM car navigation systems, OEM car audio products, and consumer-market car audio products

Increase Factors

Impact of currency exchange (-6.5 billion yen)Decrease Factors

121% (Japan 117%, Overseas 125%)% to Prior Year

< Operating Income >

Decrease of 1.0 billion yen% to Prev. Forecasts

Increased SG&A (-8.2billion yen)Decrease Factor

Higher profit due to increased net sales (+13.0 billion yen), and improvement of gross profit margin (+2.9 billion yen)

Increase Factors

Impact of currency exchange (-1.0 billion yen)Decrease Factor

Increase of 7.7 billion yenYear-on-Year

< Shipment to Consumer Market >

8,040

960

FY13 Forecasts

6,980

940

FY12

Car CD Players

Car navigation systems

(thousand units)

No change from original forecast

* *

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

77.581.5

Overseas64.9

46.060.0

Japan58.1

123.1 123.5

141.5

1.53.6 4.5

FY12Results

FY13PreviousForecasts

FY13Revised

Forecasts

Forecasts for FY2013: Home Electronics

(billion yen)< Net Sales >

87% (Japan 77%, Overseas 95%)% to Prev. Forecasts

Impact of currency exchange (-4.0 billion yen), and optical disc drive-related products (-14.0 billion yen)

Decrease Factors

Optical disc drive-related productsDecrease Factor

Home AV products, and DJ equipmentIncrease Factors

100％ （Japan 79%, Overseas 119%)% to Prior Year

< Operating Income >

Higher profit due to increased net sales (+5.2 billion yen)

Increase Factor

Decrease of 3.0 billion yenvs. Prev. Forecasts

Increased SG&A (-7.3 billion yen)Decrease Factors

Impact of currency exchange (-1.0 billion yen), and lower profit due to decreased net sales (-2.0 billion yen)

Decrease Factors

Decrease of 2.1 billion yenYear-on-Year

Net Sales

Operating Income

18

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

20.020.5Overseas15.5

29.029.0Japan

27.4

42.949.049.5

0

-0.3

0

FY12Results

FY13PreviousForecasts

FY13Revised

Forecasts

Forecasts for FY2013: Others

19

(billion yen)

Net Sales

Operating Loss

< Net Sales >

99% (Japan 100%, Overseas 99%)% to Prev. Forecasts

Impact of currency exchange (-0.5 billion yen)

Decrease Factor

Licensing of patentsDecrease Factor

Parts business in Brazil, factory automation systems, and cycle navigation systems

Increase Factors

114％ （Japan 106%, Overseas 129%)% to Prior Year

< Operating Income/Loss >

Electronic devices, parts business in Brazil, and factory automation systems

Increase Factors

No changevs. Prev. Forecasts

Licensing of patentsDecrease Factors

Increase of 0.3 billion yenYear-on-Year

Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.

122.597.7

0

50

100

150

FY12Results

FY13Revised

Forecasts

54.049.8

0

50

100

150

FY12Results

FY13Revised

Forecasts

67.388.5

0

50

100

150

FY12Results

FY13Revised

Forecasts

235.0222.0

0

100

200

300

FY12Results

FY13Revised

Forecasts

20

North AmericaJapan (billion yen)

FY13 compared to prior yearYen basis: 107%Local currency basis: 122%

Increase FactorsHome AV products, DJ equipment,and OEM car audio products

Decrease FactorN/A

FY13 compared to prior yearYen basis: 132%Local currency basis: 134%

Increase FactorsOEM car audio products, and OEM car navigation systems

Decrease FactorLicensing of Patents

FY13 compared to prior year106%

Increase FactorsOEM car navigation systems, and Home AV products

Decrease FactorsOptical disc drive-related products, and consumer-market car navigation systems

FY13 compared to prior yearYen basis: 126%Local currency basis: 127%

Increase FactorsConsumer-market car audio products, and parts business inBrazil

Decrease FactorOptical disc drive-related products

Europe Other Areas

Forecasts for FY2013: Net Sales by Geographic Segment

29.839.343.2

24.6 28.0

(6.0)

FY09Results

FY10Results

FY11Results

FY12Results

FY13Revised

Forecasts

22.123.8

45.8 36.024.8

(9.1)

FY09Results

FY10Results

FY11Results

FY12Results

FY13Revised

Forecasts

66.959.655.184.9

63.0

424743

76

50

FY09Results

FY10Results

FY11Results

FY12Results

FY13Revised

Forecasts

54.836.0 33.0 34.6 38.0

(7.9)

7.67.99.8

8.2 7.2

FY09Results

FY10Results

FY11Results

FY12Results

FY13Revised

Forecasts

Inventories

Capital Expenditures

R&D Expenses

Depreciation and Amortization

Forecasts for FY2013:Inventories, R&D Expenses, Capital Expenditures, Depreciation & Amortization

(turnover days) (% to net sales)

21

（Three-month result）

（Three-month result） （Three-month result）

(billion yen)

Notes:1. “Cash flows from investing activities” and “Cash and Deposits” include time deposit over three months. 2. D/E Ratio=Debt ÷ (Equity – Minority Interests)

Forecasts for FY2013: Cash Flows and Financial Data

22

-0.5

21.8

-8.4

8.0

FY10 Results

43.018.237.5Cash flows from operating activities

41.3

-74.2

3.9

FY11 Results

7.5-3.6Free cash flows

-7.01.7Cash flows from financing activities

-35.5-21.8Cash flows from investing activities

FY13 Revised

Forecasts

FY12 Results

90.2

1.9

73.8

22%

90.7

FY11 Results

36.543.640.3Net Debt

47.6

1.0

27%

88.5

FY11 Results

45.046.0Cash and Deposits

0.91.1D/E Ratio (times)

28%26%Equity Ratio (%)

92.089.0Equity

FY13 Revised

Forecasts

FY12 Results

(billion yen)【Cash Flows】

【Financial Data】

3. Topics

23

Car Navigation Strategy (Including Smartphone-link Models)Pioneer recognizes smartphone-link car navigation as an opportunity to broaden demand for car navigation systems.Pioneer foresaw the expansion of smartphone-link car navigation and has already launched such products into the market. Pioneer provides an extensive product lineup that meets a variety of user needs (from smartphone-link models to cutting-edge models equipped with AR HUD units).

24

Smartphone-linkmodels

For Consumer-Market For OEM

System －Line

installation ○

HDD "Cyber Navi" Dealer Optionmodel ○

Memory "Raku Navi" Dealer Optionmodel ○

PND "Air Navi" － ○

Displayaudio Appli Unit Line

installation ○

Peripheral Navi Cradle － ○

InformationNetwork

ConnectionSupport

Productcategory

BusinessImage Photos