To Our Stakeholders

For the first half of fiscal 2012, ended September 30, 2011, net sales declined year on year due to the effects of the Great East Japan Earthquake. However, operating income increased thanks to robust sales of car navigation systems in Japan. Looking ahead, we are still facing a difficult operating environment that includes the flooding in Thailand, rising prices for rare earth metals, and concerns over a global economic slowdown arising from the financial turmoil in Europe. To counter these difficulties, we are setting a course for future growth through the concerted efforts of management and employees.

Pioneer has formulated the following four key themes for its new medium-term plan:

1. Grow existing businesses:
We aim to increase profits on a sustainable level in the core Car Electronics business and achieve profitability in all Home Electronics businesses.

2. Enter emerging markets and expand business:
We plan to actively expand our business in emerging markets by implementing strategies that meet the needs of each regional market through brand recognition, a Pioneer strength.

3. Develop new businesses:
We will establish new businesses succeeding our Car Electronics and Home Electronics businesses, employing our technological strengths.

4. Promote strategic alliances:
We will promote business alliances and collaboration with strategic partners in a swift and steady manner.

Although we have suffered as a result of such unprecedented disasters as the massive earthquake in Japan and the disastrous flooding in Thailand, we will make every effort to accelerate our growth under our new medium-term plan upon successfully minimizing the impact of these disasters. Our consolidated business targets for fiscal 2014 are ¥570 billion in net sales, ¥31 billion in operating income, and ¥21 billion in net income.

We are fully committed to "Brighten up the Pioneer Brand". We possess the enthusiasm, imagination, and technology to realize this conviction. Through our DNA, we at Pioneer are able to create superior technology, and are determined to carry out our growth strategy, overcoming the recent difficulties, and realize a future of solid, steady growth.

I ask for your continued support and understanding as we work toward these goals.

December 2011

Susumu Kotani 
President and Representative Director