JVC 1998 Annual Report Download - page 18

16 JVC 1998
Financial Review
Consumer Electronics
727 767 807
890 916
342 363 397
406 390
385 404 409 484 526
97 98
Breakdown of Net Sales (%)
Net Sales by Type of
Transaction (Billions of yen)
Domestic Overseas
94 95 96 97 98
Professional Electronics Components & Devices
Entertainment Other
62
13
9
15
1
63
13
8
15
1
Sales
For the fiscal year ended March 31, 1998, JVC’s consolidated net
sales totaled ¥916,306 million (US$6,941.7 million), an increase of
2.9% from the previous fiscal year. By category, Consumer
Electronics contributed substantially to sales growth. Sales of
Professional Electronics remained almost unchanged from the pre-
vious fiscal year. Sales of Components & Devices declined, while
sales of Entertainment rose.
To reduce exposure to conventional AV products undergoing
severe price competition around the world, JVC emphasized high-
value-added products in its Consumer Electronics business, and
focused efforts on expanding sales among its three non-Consumer
Electronics businesses: Professional Electronics, Components &
Devices and Entertainment. However, the ratio of sales in non-
Consumer Electronics businesses fell to 36.1% from 37.9% in the
previous term. This is the result of sales growth in Consumer
Electronics, centered on high-value-added products, and stagnant
market conditions for strategic products in Professional Electronics
and Components & Devices.
By geographic region, sales in Japan decreased 3.9% to
¥390,021 million (US$2,954.7 million). Overseas sales advanced
8.6% to ¥526,285 million (US$3,987.0 million). Although the
Japanese economy continued its unprecedented decline, firm
overseas sales in the primary markets of the United States and
Europe and an enhanced sales and marketing structure that
adheres closely to each region contributed to increased revenue.
The sales performance of each business was as follows:
Consumer Electronics
In Consumer Electronics, the main products include VCRs,
camcorders, televisions, audio products, telephones and related
products.
Sales of Consumer Electronics grew 5.8% to ¥585,245 million
(US$4,433.7 million). This represented 63.9% of consolidated net
sales, an increase of 1.8 percentage points from the previous fiscal
year. Amid declining world prices for existing AV products, sales of
the New AV lineup of high-value-added digital products, including
digital camcorders, HDTVs and MD audio products, expanded to
¥64 billion from ¥55 billion in the previous fiscal year, contributing
substantially to increased revenues. The spring 1999 scheduled
domestic release of the D-VHS home-use digital VCR, which was
launched first in the United States, will further enhance JVC’s
lineup of New AV products.
Professional Electronics
The Professional Electronics business provides professional-use
AV systems, information communication systems and security sys-
tems to broadcasting stations and companies as well as public,
educational and recreational facilities.
Sales of Professional Electronics slipped 0.5% to ¥118,783 mil-
lion (US$899.9 million), accounting for 13.0% of net sales, down
0.4 percentage point. Amid sluggish capital investment and lack-
luster overall demand in Japan, the Digital-S video system signifi-
cantly expanded its share in the world market for broadcasting
stations, partially offsetting the decline in domestic sales. The
advent of full-scale digital broadcasting in 1998 is predicted to
greatly expand the scale of business in this category.
Components & Devices
Among the main products in Components & Devices are deflection