Slides
Page 1
* All figures in this document are prepared in accordance with International Financial Reporting Standards (IFRS). * Percentages and value differences shown in this document were computed in yen and any single-digit value was rounded off to the nearest two-digit value. Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. JVCKENWOOD Results and Forecast Briefing First Half of Fiscal Year Ending March 31, 2027 (IFRS) October 30, 2026 Copyright © JVCKENWOOD Corporation. All rights reserved. JVCKENWOOD Corporation
Page 2
2 Financial Highlights S&S : Safety & Security Sector M&T : Mobility & Telematics Services Sector ES : Entertainment Solutions Sector ◼ Overview of financial results for H1 of FYE3/’27 ✓ Revenue increased YoY. Core operating income also increased, driven bythe impact of higher revenue and a reduction in cost of sales resulting from refunds of the U.S. IEEPA tariffs (hereinafter referred to as “U.S. tariffs”). • Revenue: Revenue increased YoY, mainly due to higher sales in the Domestic Dealer- Installed Option Business in M&T, strong performance in the Entertainment Business in ES, and the depreciation of the yen. • Core operating income: Despite the impact of lower revenue in the North American public safety market in the Communications Systems Business in S&S and higher-than-anticipated prices of memory and other components in M&T, core operating income increased YoY, mainly due to the recognition of U.S. tariff refunds. ◼ Full-year earnings forecast for FYE3/’27 ✓ For Q3 and beyond, while steady performance is expected in the Domestic Dealer-Installed Option and Entertainment Businesses, earnings in M&T are expected to be affected by higher prices of memory and other components, and sales in the Communications Systems Business are expected to fall below expectations in the North American public safety market. Accordingly, the full-year forecast has been revised.
Page 3
1. Overview of Financial Results for H1 of FYE3/ʼ27 and Full-year Earnings Forecast for FYE3/’27 2. Topics <Reference material>
Page 4
1. Overview of Financial Results for H1 of FYE3/ʼ27 and Full-year Earnings Forecast for FYE3/’27 2. Topics <Reference material>
Page 5
5 Financial Results for H1 of FYE3/ʼ27 *1 Core operating income does not include nonrecurring items that mainly occur temporarily, such as other income included in ope rating income, other expenses, and foreign exchange losses (gains). *2 Profit (loss) before tax + Interest expense + Depreciation expense + Impairment loss. （Billion yen） FYE3/’25 H1 FYE3/’26 H1 FYE3/’27 H1 YoY Revenue 176.6 169.3 183.8 +14.5 +8.5% Cost of sales 118.5 117.8 124.5 +6.7 +5.7% Gross profit 58.1 51.6 59.3 +7.8 +15.0% Profit margin 32.9% 30.5% 32.3% Core operating income*1 13.0 8.3 12.3 +3.9 +47.4% Profit margin 7.4% 4.9% 6.7% Other Income, Other Expenses, Foreign Exchange Loss, etc. 0.5 1.3 -0.8 -2.1 - Operating profit 13.6 9.6 11.5 +1.9 +19.2% Profit margin 7.7% 5.7% 6.3% Profit before income taxes 14.5 10.3 12.0 +1.7 +16.2% Profit attributable to owners of the parent 11.1 7.5 8.2 +0.7 +9.5% EBITDA*2 23.8 19.5 23.2 +3.7 +19.0% EBITDA margin 13.5% 11.5% 12.6% (Yen) FYE3/’26 FYE3/’27 Q1 Q2 Q3 Q4 Full-Year Q1 Q2 Q3 Q4 Full-Year Profit-And-Loss Exchange Rates U.S. dollar 145 147 154 157 151 160 159 Euro 164 172 179 184 175 185 183
Page 6
6 Financial Results for H1 of FYE3/’27: Results by Sector S&S M&T ES （Billion yen） （Billion yen） FYE3/’25 H1 FYE3/’26 H1 FYE3/’27 H1 YoY Impact of the U.S. Tariff Refunds on Core Operating Income S&S Revenue 48.6 43.7 40.4 -3.3 -7.6% Core Operating Income 9.9 5.1 5.5 +0.4 +7.4% 3.0 M&T Revenue 96.7 95.4 107.6 +12.2 +12.8% Core Operating Income 2.0 2.5 3.0 +0.4 +16.8% 0.7 E S Revenue 26.6 25.9 31.3 +5.4 +20.8% Core Operating Income 1.0 0.5 3.8 +3.3 +618.6% 0.5 Others Revenue 4.6 4.3 4.5 +0.2 +5.5% Core Operating Income 0.1 0.1 0.0 -0.1 -93.1% 0.0 Total Revenue 176.6 169.3 183.8 +14.5 +8.5% Core Operating Income 13.0 8.3 12.3 +3.9 +47.4% 4.3 Revenue decreased for the sector as a whole, mainly due to lower sales in the North American public safety market and withdrawal from the Healthcare Business, despite a recovery in sales to the enterprise market in the Communications Systems Business. Core operating income increased for the sector as a whole, mainly due to the recognition of U.S. tariff refunds. Revenue increased for the sector as a whole, mainly due to higher sales in the Domestic Dealer-Installed Option Business, measures to address rising component prices, higher revenue in the Aftermarket Business and Telematics Service Business, and the depreciation of the yen. Core operating income also increased for the sector as a whole, mainly due to the recognition of U.S. tariff refunds. Revenue in the Media Business decreased due to lower projector sales, despite a recovery in headphone and earphone sales. Meanwhile, very strong content sales, including music distribution, in the Entertainment Business contributed to higher revenue and a significant increase in core operating income for the sector as a whole.
Page 7
7 Financial Results for H1 of FYE3/’27: Factors Contributing to Changes in Core Operating Income H1 of FYE3/’26 H1 of FYE3/’27 Impact of currency hedging (Billion yen) 8.3 -5.8※ 12.3 ＋4.3 -1.5 -4.2 ＋3.7 ＋7.4 Impact of higher memory and other component prices Impact of price adjustments Increase in fixed costs *Increase due to foreign currency translation: -3.3 Higher revenue and improved profit margins, etc. U.S. tariff refunds ◼ Despite higher-than-anticipated prices of memory and other components and an increase in fixed costs, core operating income increased YoY, mainly due to improved profit margins driven by higher sales and the recognition of refunds related to the U.S. tariffs.
Page 8
8 Full-year earnings forecast for FYE3/’27 (Billion Yen） (Billion Yen） FYE3/'24 FYE3/'25 FYE3/'26 Forecast for FYE3/'27 announced previously (May 1,2026) Forecast for FYE3/'27 announced this time (Oct. 30, 2026) YoY Impact of the U.S. Tariff Refunds Revenue 359.5 370.3 356.9 364.0 376.0 +19.1 +5.4% Core Operating Income 19.7 25.3 20.9 23.4 22.3 +1.4 +6.8% 4.5 Operating Profit 18.2 21.8 20.5 20.6 19.5 -1.0 -5.1% 4.5 Profit Before Income Taxes 18.2 23.5 21.7 21.0 19.7 -2.0 -9.0% 4.7 Profit Attributable to Owners of the Parent 13.0 20.3 16.8 15.0 14.7 -2.1 -12.4% 3.5 ROE（％） 12.2 16.9 12.5 10.1 10.0 (Yen） FYE3/'24 FYE3/'25 FYE3/'26 FYE3/'27 FYE3/'27 Year-end dividend（Per share） 12 15 18 20 20 (Yen） FYE3/'24 FYE3/'25 FYE3/26 FYE3/27 FYE3/27 Profit-And-Loss Exchange Rates U.S. doller 145 151 151 155 155 Euro 157 175 175 180 180 ◼ Revenue for H1 exceeded expectations mainly due to higher sales in the Domestic Dealer-Installed Option Business in M&T, strong performance in the Entertainment Business in ES, and the depreciation of the yen. Excluding the benefit from the U.S. tariff refunds, core operating income fell short of expectations due to lower sales in the Communications Systems Business in S&S. ◼ For Q3 and beyond, while steady performance is expected in the Domestic Dealer-Installed Option and Entertainment Businesses, earnings in M&T are expected to be affected by higher prices of memory and other components, while sales in the Communications Systems Business are expected to fall below expectations in the North American public safety market. Accordingly, the full-year earnings forecast has been revised.
Page 9
9 ＋7.1 +0.4 Absence of loss provision for business withdrawal Full-Year Earnings Forecast for FYE3/ʼ27: Main Factors Impacting Core Operating Income FYE‘26/3 Impact of currency hedging (Billion yen) Increase in revenue, and improved profit margin Increase in fixed costs *Increase due to foreign currency translation: -3.1 FYE’27/3 (Forecast) -2.1 -7.9※ +11.1 20.9 22.3 -11.6 ＋4.5 Impact of higher memory and other components prices Impact of price adjustments U.S. tariff refunds
Page 10
10 Full-year earnings forecast for FYE3/’27 by Sector （Billion Yen) （Billion Yen) Results for FYE3/'24 Results for FYE3/'25 Results for FYE3/'26 Forecast for FYE3/'27 announced previously (May 1,2026) Forecast for FYE3/'27 announced this time (Oct. 30, 2026) Compared to the previous forecast Change Amount of the U.S. IEEPA tariff refunds recognized as core operating income S&S Revenue 93.8 100.0 94.7 105.0 90.0 -15.0 -14.3% Core Operating Income 16.5 18.6 12.7 15.6 9.4 -6.2 -39.7% 3.2 M&T Revenue 199.4 203.2 195.7 198.0 220.0 +22.0 +11.1% Core Operating Income 3.9 4.9 5.4 5.5 7.4 +1.9 +34.5% 0.7 ES Revenue 56.0 57.9 56.8 54.0 58.0 +4.0 +7.4% Core Operating Income -0.3 1.8 2.5 2.3 5.5 +3.2 +139.1% 0.5 Others Revenue 10.3 9.1 9.6 7.0 8.0 +1.0 +14.3% Core Operating Income -0.4 -0.0 0.2 0.0 0.0 0.0 ー 0.0 Total Revenue 359.5 370.3 356.9 364.0 376.0 +12.0 +3.3% Core Operating Income 19.7 25.3 20.9 23.4 22.3 -1.1 -4.7% 4.5 ◼ S&S: Earnings are expected to fall below the previously announced forecast, as sales in the North American public safety market in the Communications Systems Business are expected to fall below expectations . ◼ M&T: Earnings are expected to exceed the previously announced forecast, as the Domestic Dealer-Installed Option Business is expected to remain strong throughout the year, driven primarily by products introduced at the end of the previous fiscal year, despite continued high prices of memory and other components. ◼ ES: Earnings are expected to exceed the previously announced forecast, as content sales, including music streaming, in the Entertainment Business significantly exceeded expectations in H1.
Page 11
11 370.3 356.9 364.0 376.0 25.3 20.9 23.4 22.3 FYE3/’25 FYE3/’26 FYE3/’27 FYE3/’25 FYE3/’26 FYE3/’27 Trends in Quarterly Results Quarterly Cumulative for the quarter (Billion yen) (Billion yen) (Billion yen) Core Operating Income Revenue Core Operating Income Revenue Annual ‘26/3期 予想 FYE3/’26 FYE3/’27(F)FYE3/’25 Previous Revised 87.8 88.8 93.9 99.8 80.2 89.1 89.3 98.2 88.8 95.0 6.0 7.0 5.6 6.7 3.1 5.3 5.0 7.6 2.0 10.3 5.9 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Core Operating Income Revenue Core Operating Income Excluding the U.S Tariff Refunds ◼ In Q2 (July–September), revenue and core operating income increased due to strong sales in the Domestic Dealer- Installed Option Business in M&T and the Entertainment Business in ES, as well as the depreciation of the yen. Core operating income increased significantly YoY, further supported by the recognition of U.S. tariff refunds. 87.8 176.6 270.5 370.3 80.2 169.3 258.6 356.9 88.8 183.8 6.0 13.0 18.6 25.3 3.1 8.3 13.3 20.9 2.0 12.3 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 Core Operating Income Excluding the U.S Tariff Refunds 7.9
Page 12
12 FYE3/’25 FYE3/’26 FYE3/’27 FYE3/’25 FYE3/’26 FYE3/’27 4.5 5.4 3.3 5.4 0.9 4.2 2.8 4.8 0.1 5.4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 S&S: Trends in Revenue and Core Operating Income Quarterly Cumulative for the quarter (Billion yen) (Billion yen) (Billion yen) Annual Core Operating Income Revenue Core Operating Income Revenue Core Operating Income Revenue Communication Systems Professional Systems ◼ In Q2 (July–September), revenue declined YoY mainly due to lower sales in the North American public safety market and lower sales resulting from the withdrawal from the Healthcare Business, despite a recovery in sales to the enterprise market in the Communications Systems Business. Meanwhile, core operating income increased mainly due to the recognition of U.S. tariff refunds. 24.2 24.3 24.5 26.9 18.3 25.4 23.1 27.8 21.9 24.2 48.6 73.1 100.0 18.3 43.7 66.9 94.7 18.5 40.4 4.5 9.9 13.2 18.6 0.9 5.1 7.9 12.7 0.1 5.5 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 100.0 94.7 105.0 90.0 18.6 12.7 15.6 9.4 18.5 Core Operating Income Excluding the U.S Tariff Refunds 2.5 2.4 Core Operating Income Excluding the U.S Tariff Refunds ‘26/3期 予想 FYE3/’26 FYE3/’27(F)FYE3/’25 Previous Revised
Page 13
13 FYE3/’25 FYE3/’26 FYE3/’27 M&T: Trends in Revenue and Core Operating Income Quarterly Cumulative for the quarter (Billion yen) (Billion yen) (Billion yen) Annual Telematics Service Aftermarket OEM Core Operating Income Revenue Core Operating Income Revenue Core Operating Income Revenue ◼ In Q2 (July–September), revenue and core operating income increased YoY for the sector as a whole due to higher sales in the Domestic Dealer-Installed Option Business, Aftermarket Business, and Telematics Service Business, as well as the depreciation of the yen. Core operating income increased significantly YoY, further supported by the recognition of U.S. tariff refunds. 0.6 1.4 1.6 1.3 1.7 0.9 1.6 1.2 0.6 2.4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 47.9 96.7 148.8 203.2 46.6 95.4 144.4 195.7 53.5 107.6 0.6 2.0 3.6 4.9 1.7 2.5 4.2 5.4 0.6 3.0 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 47.9 48.8 52.1 54.4 46.6 48.9 49.0 51.3 53.5 54.1 2.2 203.2 195.7 198.0 220.0 4.9 5.4 5.5 7.4 1.6 Core Operating Income Excluding the U.S Tariff Refunds Core Operating Income Excluding the U.S Tariff Refunds ‘26/3期 予想 FYE3/’26 FYE3/’27(F)FYE3/’25 Previous Revised FYE3/’25 FYE3/’26 FYE3/’27
Page 14
14 FYE3/’25 FYE3/’26 FYE3/’27 FYE3/’25 FYE3/’26 FYE3/’27 ES: Trends in Revenue and Core Operating Income Quarterly Cumulative for the quarter (Billion yen) (Billion yen) (Billion yen) Annual Entertainment Media Core Operating Income Revenue Core Operating Income Revenue Core Operating Income Revenue ◼ In Q2 (July–September), the Media Business posted a revenue decline due to lower projector sales. Meanwhile, both revenue and core operating income significantly increased YoY for the sector as a whole, mainly due to very strong content sales, including music streaming, in the Entertainment Business. 0.7 0.2 0.7 0.1 0.4 0.1 0.6 1.4 1.3 2.5 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 0.7 1.0 1.7 1.8 0.4 0.5 1.1 2.5 1.3 3.8 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 Q1 H1 Q1-3 Q1-4 1.9 3.3 (Billion yen) 13.4 13.2 14.8 16.5 13.2 12.6 14.3 16.7 14.4 16.8 Core Operating Income Excluding the U.S Tariff Refunds Core Operating Income Excluding the U.S Tariff Refunds 57.9 56.8 54.0 58.0 1.8 2.5 2.3 5.5 ‘26/3期 予想 FYE3/’26 FYE3/’27(F)FYE3/’25 Previous Revised
Page 15
15 FYE3/’27 Financial Results for H1 of FYE3/’27:Consolidated Revenue by Region Increase/Decrease by Region （Billion yen） Ratio by Region H1 of FYE3/‘26 H1 of FYE3/‘27 Europe Asia/ China Others FYE3/’25 H1 FYE3/’26 H1 FYE3/’27 H1 Japan 31% 32% 38% Americas 29% 28% 26% Europe 21% 22% 19% Asia/China 18% 16% 14% Others 2% 2% 3% Total 100% 100% 100% 169.3 183.8 +1.3 -1.4 -1.9＋15.7 Americas Japan ＋0.8 Trends by Region （Billion yen） Japan Americas Europe Others Asia/China FYE3/’26 FYE3/’25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 25.9 28.1 29.7 34.6 25.8 28.4 28.8 36.4 32.2 37.6 26.0 25.5 24.9 28.7 20.7 26.6 23.6 28.7 22.9 25.6 18.5 17.7 20.7 18.7 18.2 18.5 20.6 19.1 18.3 16.9 15.8 15.6 16.9 16.2 13.5 13.6 14.2 11.7 12.8 12.41.6 1.8 1.7 1.7 2.0 2.1 2.1 2.4 2.6 2.4 ◼ Revenue increased in Japan due to strong performance in the Domestic Dealer-Installed Option Business, and in the Americas mainly due to a recovery in the Communications Systems Business for the enterprise market and the depreciation of the yen.
Page 16
16 Financial Results for H1 of FYE3/’27: Consolidated Profit/Loss Summary ◼ Operating profit increased by approximately 1.9 billion yen, mainly due to an increase in core operating income, despite a deterioration in other income and expenses resulting from lower gains on the sale of land and the recording of restructuring expenses at production sites. ◼ Profit before income taxes increased by approximately 1.7 billion yen, despite a deterioration in the financial balance and a decrease in share of profit of investments accounted for using the equity method. ◼ Profit attributable to owners of the parent increased by approximately 0.7 billion yen, despite an increase in income tax expenses. （Billion yen） H1 of 'FYE3/'25 H1 of FYE3/'26 H1 of FYE3/'27 YoY Core Operating Income 13.0 8.3 12.3 +3.9 Other Income, Other Expenses, Foreign Exchange Loss, etc. 0.5 1.3 -0.8 -2.1 Operating Profit 13.6 9.6 11.5 +1.9 Finance Income, Finance Expenses, etc. 0.9 0.7 0.5 -0.2 Profit Before Income Taxes 14.5 10.3 12.0 +1.7 Income Tax Expenses 2.9 2.6 3.6 +1.0 Non-Controlling Interests 0.5 0.2 0.2 -0.1 Profit Attributable to Owners of the Parent 11.1 7.5 8.2 +0.7 * Core operating income does not include nonrecurring items that mainly occur temporarily, such as other income included in operating income, other expenses, and foreign exchange losses (gains).
Page 17
17 Financial Results for H1 of FYE3/’27: Financial Position Summary ◼ Equity attributable to owners of the parent increased by approximately 1.5 billion yen from the end of the previous fiscal year to 145.4 billion yen, mainly due to an increase in retained earnings, despite dividend payments, share repurchases and a decrease in other components of equity. ◼ Net cash increased by approximately 3.6 billion yen from the end of the previous fiscal year to 0.8 billion yen, mainly due to improved cash flows from operating activities. (Billion yen） FYE3/’25 FYE3/’26 FYE3/’27 1H YoY Total Assets 313.3 347.6 344.9 -2.7 Total Liabilities 181.9 197.9 193.7 -4.2 Total Equity 131.4 149.7 151.3 +1.6 Interest-Bearing Debts 50.4 68.6 63.6 -5.0 Net Debt -1.8 -2.9 0.8 +3.6 Net Debt/Equity Ratio (Times) 0.01 0.02 -0.01 -0.03 Equity Attributable to Owners of the Parent 125.1 143.8 145.4 +1.5 Stockholder's Equity Ratio（%） 39.9% 41.4% 42.1% +0.7pt
Page 18
18 Financial Results for H1 of FYE3/’27: Cash Flow Summary ◼ Cash flows from operating activities: Increased year on year due to higher depreciation and amortization and the receipt of U.S. IEEPA tariff refunds. ◼ Cash flows from investing activities: Outflows increased year on year due to lower proceeds from the sale of fixed assets and payments for the acquisition of San Luis Aviation, Inc. ◼ Cash flows from financing activities: Outflows increased year on year due to repayment of interest-bearing debt. (Billion yen） FYE3/’25 H1 FYE3/’26 H1 FYE3/’27 H1 YoY Cash Flow from Operating Activities 16.0 16.1 23.8 +7.7 Cash Flow from Investing Activities -7.9 -11.1 -12.4 -1.2 Free cash flow *Free cash flow: Cash flow from operating activities + Cash flow from investing activities 8.1 4.9 11.4 +6.5 Cash Flow from Financing Activities -10.2 -5.0 -12.0 -6.9 Total -2.2 -0.1 -0.6 -0.5
Page 19
1. Overview of Financial Results for H1 of FYE3/ʼ27 and Full-year Earnings Forecast for FYE3/’27 2. Topics <Reference material>
Page 20
20 ◼ North American Public Safety Market Environment The overall market continues to grow, but the following changes are emerging: ➢ Pullback in demand following temporary growth in 2022–2024 driven by post-COVID demand and state and local government grants ➢ Government funding is now largely directed toward federal agencies, while budget availability remains limited among smaller local governments, our core customer base, intensifying competition for reduced demand ➢ Faster-than-expected shift toward hybrid solutions S&S: Communications Systems Business Overview 0 50,000 100,000 150,000 200,000 250,000 4Q 4Q 4Q 4Q 4Q 1Q 2Q '22/3期 '23/3期 '24/3期 '25/3期 '26/3期 '27/3期 年間受注高 期末受注残 Quarterly orders received Order backlog at the end of the quarter200 US$ Mil Annual orders received Order backlog at the end of the period FYE3/’22 FYE3/’24 FYE3/’25 FYE3/’26 FYE3/’27FYE3/’23 Full year Full year Full year Full year Full year Q1 Q2 ◼ Orders received and order backlog Remain Weak This Fiscal Year Orders received and order backlog for the North American public safety market
Page 21
21 ➢ Expand the lineup, including the VP8000 slim model, to meet diverse customer needs. ➢ Strengthen sales capabilities by enhancing customer visibility and focusing resources on priority markets and customers ➢ Review channel strategy and establish optimal channels by market and region ➢ Strengthen sales coordination among Group companies in the U.S. ➢ Expand system orders to stabilize and grow earnings ※1 PMI：Post Merger Integration ※2 ESChat：PTToC (Push-to-Talk over Cellular) service of San Luis Aviation, Inc., which became a subsidiary in July 2026. The service has a strong global market share and key certifications required for the U.S. government and public safety markets. ◼ Strengthening Product Competitiveness◼ Review of the North American Sales and Distribution Organization Orders Open for VP8000 Viking Connect VP8000 Slim Model Announced (October 2026) S&S: Communications Systems Business Initiatives Added a slimmer, more compact and portable VP8000 model to the lineup to meet demand for smaller, thinner radios in the public safety market. Shipments scheduled for spring 2027. A hybrid communication solution equipped with ESChat that integrates professional radio and broadband to extend communication coverage and enhance interoperability. Orders began in June 2026. ◼ Response to the Shift toward Hybrid Solutions ➢ Increase hybrid project wins through the PMI*1 of ESChat*2
Page 22
22 ◼ Revenue from the Domestic Dealer-Installed Option Business has exceeded the initial plan, driven by increased sales of products introduced at the end of the previous fiscal year. ◼ Memory and other component prices continued to rise; measures underway in both procurement and sales to mitigate the impact on earnings. ’26/3期実績 ’27/3期見通し Initial plan Higher-than-expected sales Price adjustments reflecting procurement costs Result Higher-than-planned revenue, driven by increased sales of newly introduced products. M&T: OEM Business Overview Response to address memory supply shortages and rising prices Operations during H1 ・Memory prices remained above initial assumptions in Q2, continuing to impact earnings ・90% of the Company’s memory procurement is for M&T, with limited impact on the Communications Systems Business in S&S ・Supply delays and price increases also occurred for other components Continuously monitoring supply and demand for memory and other electronic components, while securing stable supply through advance procurement, optimizing procurement costs, and reflecting cost changes in sales prices OEM Business (Dealer-Installed Option Business) Revenue Outlook FYE3/’26 FYE3/’26 Outlook
Page 23
23 Restructuring costs are factored in for FYE 3/’27, and the resulting benefits are expected to be approximately ¥1.0 billion per year from the next fiscal year onward. Progress of Structural Reforms under VISION 2030 Key Initiatives for the Period ➢ Following the withdrawal from the Healthcare Business, production of medical imaging display monitors and other products ended in September 2026, with sales scheduled to end in December 2026. Optimized the workforce at the Nagaoka factory. ➢ Optimized the workforce at the Malaysia factory to improve productivity. ➢ Optimized the workforce at the Indonesia factory for the Aftermarket Business, which is positioned as a restructuring business. ➢ In addition, reviewing opportunities to further optimize the overseas sales network. ◼ Implement structural reforms based on our “Production Grand Design” and other initiatives to optimize the business portfolio
Page 24
24 Progress of Shareholder Returns for FYE3/’27 ◼ Completed repurchases of 3,000,000 own shares totaling ¥3.0 billion from August 2026 to October 2026 ◼ Total return ratio expected to reach approx. 40%, including dividend forecast Share Repurchase Completion Amount (billion yen) FY2023 Dec. 2023 Approx. 2.5 FY2024 Feb. 2025 Approx. 4.5 May 2025 Approx. 2.0 FY2025 Feb. 2026 Approx. 3.0 FY2026 Oct. 2026 Approx. 3.0 5 6 1012 10 12 10 FY2023 FY2024 FY2025 FY2026 (Forecast) Trends in Dividend per Share (Yen) End of Q2 Year-end 15 18 12 20 In accordance with the shareholder return policy outlined in the Medium-Term Management Plan “VISION 2030,” returns will be determined with a target total return ratio of 30% to 45%. * The share repurchase conducted concurrently with the November 2025 financing (approx. 5.0 billion yen) is not included in this table. * Shares repurchased from Aug.-Oct. 2026 are scheduled to be canceled. Dividend Actual Share Repurchases
Page 26
1. Overview of Financial Results for H1 of FYE3/ʼ27 and Full-year Earnings Forecast for FYE3/’27 2. Topics <Reference material>
Page 27
27 0% 5% 10% 15% 20% 25% 0 5,000 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 'FYE3/25 'FYE3/26 'FYE3/27 Revenue Core Operating Income 10 5 0 ES: Entertainment Business Overview Major Hit Titles in H1 M!LK “LOVE ENG!NE” Sakanaction “Yorunoodoriko” Artist Title Release Highest ORICON Ranking Gen Hoshino “Gen Hoshino presents MAD HOPE Japan Tour” Apr. 2026 No. 1 Weekly M!LK “11th Anniversary Day: Explosive 11-Hour Live Stream” May 2026 No. 1 Weekly Sakanaction “Yorunoodoriko” Aug. 2012 No. 1 Streaming Keisuke Kuwata “Hitotarashi” Jun. 2026 No. 1 Weekly ICEx “FRESH!! ” Jul. 2026 No. 1 Weekly M!LK “M!LK ARENA TOUR 2025-2026 SMILE POP!” Jul. 2026 No. 1 Weekly M!LK “LOVE ENG!NE” Sep. 2026 No. 1 Weekly Entertainment Business Trends (Billion yen) ◼ Major hits from new releases contributed significantly to revenue and profit growth, while catalog streaming remained strong.
Page 28
28 2026: 80th Anniversary of KENWOOD 2027: 100th Anniversary of Victor (JVC) and Victor Entertainment 2028: 20th Anniversary of JVCKENWOOD Anniversary Initiatives ◼ Anniversary initiatives will be held from FY2026 through FY2028 under the banner of “JVCKENWOOD Anniversary.” Under the theme of “Passing Down Expertise to the Next Generation While Continually Refining Our Skills and Know-How,” we aim to pass on the DNA cultivated throughout our long history. GLASS Core Pro / GLASS Core KENWOOD 80th anniversary model featuring an industry-first* glass diaphragm, delivering a realistic, immersive sound experience through faithful reproduction of the original sound. *: For wireless earbuds（As of June 11, 2026, based on JVCKENWOOD’s research）
Page 29
29 Integrated Report 2026 (September 2026) ◼ Under “Move Forward—The Power to Keep Evolving, Toward the Future,” the theme for advancing the Medium-Term Management Plan “VISION 2030” announced in May 2026, we have clarified the overall framework of the plan and its connection to value creation. Integrated Report download Link (Japanese): https://ssl4.eir-parts.net/doc/6632/ir_material_for_fiscal_ym5/212958/00.pdf
Page 30
30 OEM 41% Aftermarket 13% Telematics Service 1% Communications Systems 20% Professional Systems 6% Media 9% Entertainment 7% Business Overview Safety ＆ Security Sector（S&S） Entertainment Solutions Sector（ES） Projector Headphones / Earphones Audio System Professional Systems Media Business Entertainment Business Mobility & Telematics Services Sector（M&T） Telematics Service AftermarketOEM Communications Systems Mobility＆ Telematics Services 55% Safety & Security 27% Entertainment Solutions 16% Push-to-Talk over the Cellular (PoC) Radio Others 3% Viking” series Professional radio system (Left) Portable type (Right) Vehicle-mounted type Digital Convenience Radio Repeater System Amateur radioLicense-free transceiver Security system Emergency Broadcasting System Music and video content Display audio for trucks In-vehicle amplifier/speaker/antenna/cable Car navigation system Dashcam Connected-type dashcam 356.9 Billion yen Sales composition (FY2026)
Page 31
31 Financial Results for H1 of FYE3/’27: Consolidated Revenue & Core Operating Income by Sector H1 of FYE3/’26 H1 of FYE3/’26 H1 of FYE3/’27 H1 of FYE3/’27 （Billion yen)Revenue Core Operating Income （Billion yen) S&S ES +12.2 +5.4 -3.3 -0.2 M&T 169.3 183.8 S&S ES +0.4 ＋3.3 +0.4 -0.1 M&T 12.3 8.3 others others
Page 32
32 Changes in Management Indices-1 Trends in Capital investment, Depreciation, and R&D expenses （Billion yen） Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 7.3 9.0 7.4 7.0 30.6 5.2 5.3 6.5 7.7 24.7 3.7 4.5 Property, plant and equipment 4.1 6.2 4.2 3.6 18.1 2.2 2.4 3.8 3.5 12.0 1.3 1.8 Intangible fixed assets 3.1 2.7 3.2 3.4 12.4 2.9 2.9 2.7 4.1 12.7 2.4 2.7 4.4 4.4 4.3 4.3 17.3 4.2 4.3 4.6 4.8 18.0 5.1 5.2 4.5 4.6 5.0 5.0 19.1 4.4 4.4 4.8 4.9 18.5 4.4 4.5 * Calculated based on (Profit before income taxes) + (Interest expense) + (Depreciation expense) + (Impairment loss) Trends of Consolidated Revenue by Region （Billion yen） Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 25.9 28.1 29.7 34.6 118.2 25.8 28.4 28.8 36.4 119.4 32.2 37.6 26.0 25.5 24.9 28.7 105.1 20.7 26.6 23.6 28.7 99.5 22.9 25.6 18.5 17.7 20.7 18.7 75.6 18.2 18.5 20.6 19.1 76.4 18.3 16.9 15.8 15.6 16.9 16.2 64.6 13.5 13.6 14.2 11.7 52.9 12.8 12.4 1.6 1.8 1.7 1.7 6.8 2.0 2.1 2.1 2.4 8.6 2.6 2.4 87.8 88.8 93.9 99.8 370.3 80.2 89.1 89.3 98.2 356.9 88.8 95.0 FYE3/'27 FYE3/'26 FYE3/'26 FYE3/'26 Total Japan Americas Europe Asia&China Others R&D expenses Capital investment* （Property, plant and equipment & Intangible fixed assets ） Depreciation FYE3/'25 FYE3/'25
Page 33
33 FYE3/’22 FYE3/’23 FYE3/’24 FYE3/’25 FYE3/’26 ROE（%） 8.1% 18.2% 12.2% 16.9% 12.5% ROA（%） 2.2% 5.6% 4.2% 6.4% 5.1% ROIC（％） 4.0% 8.3% 8.9% 12.1% 8.9% PBR（Times） 0.37 0.63 1.24 1.49 1.07 Ratio of equity attributable to owners of the parent to total assets（%） 28.3% 33.0% 36.2% 39.9% 41.4% EPS（yen） 35.89 99.27 84.34 135.17 115.21 EBITDA（Billion yen) 27.5 42.2 40.6 44.0 41.7 Annual dividends per share（Yen） 6.00 12.00 12.00 15.00 18.00 Payout ratio（%） / Total return ratio（%）* 17% 37% 33% 43% 33% ＊The total return ratio is presented from FYE3/’23 onward. Changes in Management Indices-2
Page 34
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and other factors, whether known or unknown, and may be significantly different from future performance. These statements represent management's targets as of the time of issuance of these presentation materials, and the Company is under no obligation, and expressly disclaims any such obligation, to update, alter or publicize its future forecast statements in the event there are changes in the economic climate and market conditions affecting the performance of the Company. Risk factors and other uncertainty which may affect the Company’s actual performance include: (1) violent fluctuations in economic circumstances and supply and demand systems in major markets (Japan, the U.S, the EU and Asia); (2) restrictions including trade regulations applicable to major markets including Japan and other foreign countries; (3) sharp fluctuations in the exchange rate of the U.S. dollar, euro, and such like against the yen; (4) market price fluctuations in capital markets; and (5) changes in social infrastructure due to short-term changes in technology and such like. Please note, however, that the above is not a comprehensive list of all the factors that may exert a significant influence on the Company's performance.