JVC 1998 Annual Report Download - page 5

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JVC 1998 3
Adversely affected by a fall in product prices, operating income
declined 12.9% to ¥10,033 million (US$76.0 million). A consoli-
dated net loss of ¥4,703 million (US$35.6 million) was recorded
compared with consolidated net income of ¥4,586 million during
the previous fiscal year. This decline was the result of extraordinary
losses from the liquidation of assets that restricted the future
growth of JVC, comprising a loss on the liquidation of a factory in
To Our Stockholders
and Friends
France, a loss on the decrease in fixed assets associated with the
merger of marketing companies in France, and deferred tax pay-
ments incurred on the liquidation of a tape manufacturing com-
pany in Germany in 1993.
Cash dividends applicable to the year were maintained at ¥7.0
(US$0.05).
From “Victor Vision” to “Re-Value 21”
In January 1998, JVC announced “Re-Value 21,” a three-year plan
that extends until March 2001. As the successor to “Victor Vision,”
which guided the Company to a path of recovery, “Re-Value 21” is
JVC’s new guideline to strengthen strategic businesses, promote
globalization and carry out restructuring. The phrase “Re-Value” is
meant to realize a new value structure while identifying the fields in
which JVC can maximize its competitive edge in the coming
multimedia era and the age of megacompetition.
In the multimedia era, digital-related technology is expected to
produce substantial advantages for JVC. In the world of multi-
media, a universal language–digital–bridges the gaps among vari-
ous media, merging the fields of information, telecommunications
and broadcasting. JVC possesses the most advanced digital tech-
nology in the world, including high-precision imaging technology,
software control technology and highly effective coding technology
The phrase “Re-Value” is
meant to realize a new value structure while identifying
the fields in which JVC can maximize its competitive edge in the coming age.