JVC 2000 Annual Report Download

Download and view the complete annual report

Please find the complete 2000 JVC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 42

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42

VICTOR COMPANY OF JAPAN, LIMITED ANNUAL REPORT 2000
APRIL 1999–MARCH 2000
Annual Report 2000

Table of contents

  • Page 1
    VICTOR COMPANY OF JAPAN, LIMITED ANNUAL REPORT 2000 APRIL 1999-MARCH 2000

  • Page 2
    ...amounts applicable to respective years. Net Sales (Billions of yen) 870 947 916 890 807 2000 1999 1998 1997 1996 Net Income (Loss) (Billions of yen) (5.3) (8.3) (4.7) 4.6 4.3 2000 1999 1998 1997 1996 C O N T E N T S President's Message 1 Operational Outlook 6 Consumer Electronics 6 Professional...

  • Page 3
    ... annual report. Since I was appointed president, we have advanced efforts toward reinvigorating JVC in line with the mediumterm management plans "Victor Vision" and "Re-Value 21." From these efforts, we determined that securing high profits is difficult in the extremely competitive field of consumer...

  • Page 4
    ... TVs and projectors that employ Direct-Drive Image Light Amplifier (D-ILA) devices, which were developed by JVC and realize bright, high-definition images; such optical discs as CDs and DVDs; D-VHS, Digital & Network Product Lineup JVC Focuses in Fiscal 2 0 0 1 Digital Video Camcorder Image Light...

  • Page 5
    ... of high-value-added products to net sales. JVC introduced a "Company-in-Company" system to strengthen its digital and networking products. By business field, we established the AV & Multimedia Company, Components and Device Company, Entertainment Software Company and Media Products Company. With...

  • Page 6
    ... year to increase profitability. The Company will transfer production of VHS-C camcorders, TV components and professional system cameras overseas in an attempt to reduce cost of sales by increasing overseas production as a percentage of cost of sales from 53% to 60%. To increase profits, the Company...

  • Page 7
    ... Music Group. The Company will reinforce image and video operations based on the anticipation of strong growth in demand for image content as media types and the number of channels increase. In consumer electronics and professional systems, JVC will advance its digital and networking product...

  • Page 8
    ... of D-VHS units with HS mode in Japan by the end of 2000 for recording high-definition (HD) transmissions via BS digital broadcasting with high-resolution image quality. With JVC leading technological development, D-VHS continues to gain acceptance throughout the world as it garners the support of...

  • Page 9
    Providing Products That Enhance Consumer Lifestyles Through Digital Networking such large-capacity combined media, we aim to strengthen the position of video decks as home servers. The year 2000 marks a fundamental shift from analog TVs to large HD displays. JVC has expounded for a decade that the ...

  • Page 10
    ... adults, radio cassette players, video decks as well as VHS tapes and MDs. MOBILE PC (Japan model) The M obile PC is a thin, lightweight handheld PC with a variety of original AV applications installed. BLANK MEDIA Our lineup of blank media is renow ned for quality and reliability. 8 JVC 2000

  • Page 11
    ... units are employed in 350 stations around the world. Projecting growth in content creation, JVC will aggressively promote the PROFESSIONAL DV series-high-performance digital camcorders that are light and easy to use. Widely received for their functionality in connecting directly to networks, sales...

  • Page 12
    ... that convert high-definition (1080i/720p) quality images to standard definition (480i/480p) quality images. Content management and databases are indispensable in effectively utilizing content at broadcasting stations. Employing changer technology developed for karaoke machines, DVD archives provide...

  • Page 13
    ... in 2000, according to Japan Printed Circuit Association (JPCA) estimates. Our "VIL" PWBs are widely acknowledged for their highly reliable free inter-layer connections made possible with innovative laser processing technology. Our "VIL" PWBs are employed in the digital mobile phone components...

  • Page 14
    ... while profitability is declining, to high-value-added devices. Our world market share for deflection yokes remained unchanged during the fiscal year under review. In 1999, home electronics manufacturers continued to withdraw from CRT monitor operations at their domestic plants. Although sales fell...

  • Page 15
    ...of an audio channel scheduled to start in December 2000 presents an excellent opportunity for JVC to create programming for the audio channel and market the Company's abundant selection of music titles. The Japanese music market is gradually bipolarizing into works that become hit products and works...

  • Page 16
    ... and 20th Century Fox, our video sales in Japan enjoy a leading share of the business. With its core business in buying rights to international movies, theatrical distribution and packaging prerecorded videos, the visual software production division controls the rights to titles it developed and...

  • Page 17
    ... disc-shaped hybrid discs is expected to increase as a media for recording game software results. AUDIO CDS, VIDEO CASSETTES, DVDS AND COMPUTER GAMES JVC is involve d in e ve ry ma jor media for entertainment, including content creation, mastering and distribution. HYBRID CARDS (Japan model) JVC...

  • Page 18
    ... Engineering Div., Total ILA Business Development and Promotion; General Manager, Technology Development Div. Motoo Nishimura President, Entertainment Software Company; President, Victor Entertainment Inc. Directors Hideo Aiso Shuji Kurita Professional Products & Systems Marketing Div., World...

  • Page 19
    ...E A R S U M M A R Y Victor Company of Japan, Limited Years ended March 31 Millions of yen Thousands of U.S. dollars (Note A) 1997 1996 2000 1999 1998 2000 For the year Net sales...Overseas ...Domestic ...Cost of sales ...Selling, general and administrative expenses ...Income (Loss) before...

  • Page 20
    ... fiscal year. In Japan, such high-valueadded products as DVC and D-VHS grew in terms of units sold. However, domestic sales of the segment fell 9.4%, owing to an overall decline in the industry from weak consumer spending, lower prices and a sharp fall in TVs and inexpensive VTRs. 31, 2000, JVC...

  • Page 21
    ... runaway hit movies like Titanic last year. Overseas sales increased 5.7%, despite currency fluctuations, on substantial growth in music CDs, especially in the United States. JVC advanced efforts to improve cost of sales and reduce inventory. Adversely affected by a decline in prices, however, cost...

  • Page 22
    ... to a variety of risks and 2000 1999 uncertainties that could cause actual results to differ materially from those set forth in such statements. These forwardlooking statements are made only as of the date of this 1998 1997 annual report. The Company expressly disclaims any obligations or...

  • Page 23
    ...O L I D AT E D S T AT E M E N T S O F O P E R AT I O N S Victor Company of Japan, Limited Years ended March 31, 2000, 1999 and 1998 Millions of yen Thousands of U.S. dollars (Note 1) 1998 2000 1999 2000 Net sales ...Costs and expenses: Cost of sales ...Selling, general and administrative...

  • Page 24
    ...S H E E T S Victor Company of Japan, Limited March 31, 2000 and 1999 Millions of yen Thousands of U.S. dollars (Note 1) 1999 Assets Current assets: Cash and time deposits (including time deposits with maturities over three months of ¥208 million (US$1,962 thousand) in 2000 and ¥738 million in...

  • Page 25
    ... 1) 1999 Liabilities and stockholders' equity Current liabilities: Bank loans (Note 7) ...Current portion of long-term debt (Note 7)...Notes and accounts payable: Trade ...Construction ...Unconsolidated subsidiaries and affiliated companies ...Accrued income taxes (Note 6)...Accrued expenses (Note...

  • Page 26
    ...I T Y Victor Company of Japan, Limited Years ended March 31, 2000, 1999 and 1998 Shares of common stock (thousands) Common stock Millions of yen Additional paid-in capital Retained earnings Balance at March 31, 1997 ...Net loss ...Adjustment due to change in number of consolidated subsidiaries...

  • Page 27
    ... in short-term bank loans, net ...Increase in commercial paper, net ...Cash dividends paid ...Other ...Net cash used in financing activities ...Effect of exchange rate changes on cash and cash equivalents ...Effect of changes in number of consolidated subsidiaries and companies accounted for based...

  • Page 28
    ... (Decrease) in short-term bank loans...Decrease in commercial paper ...Cash dividends paid ...Net cash provided by financing activities ...Effect of exchange rate changes on cash and time deposits...Effect of changes in number of consolidated subsidiaries and companies accounted for based on equity...

  • Page 29
    ...2000, 1999 and 1998 1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS Victor Company of Japan, Limited (the "Company") and its consolidated domestic subsidiaries maintain their accounts and records in accordance with the provisions set forth in the Japanese Commercial Code and the Securities...

  • Page 30
    ... occur if convertible bonds or similar securities were converted into common stock exercised to result in the issuance of common stock. As the Company reported net losses for the years ended March 31, 2000, 1999, and 1998, inclusion of potential common shares would have an antidilutive effect on per...

  • Page 31
    ...and advances- other: Book value ...Market value ...Unrealized gains... ¥15,120 22,864 ¥ 7,744 ¥10,137 21,112 ¥10,975 $142,642 215,699 $ 73,057 Short-term bank loans of certain of the Company's consolidated subsidiaries consist of notes maturing generally in three months. The applicable annual...

  • Page 32
    ... buy Euros ... Contract amount Book value Market value Unrealized gain (loss) 1,125 ¥24,453 10,613 $230,689 ¥12,965 2,153 3,749 985 1,260 12,938 2,153 ¥49 16 20 11 ¥132 10 111 9 11 203 25 ¥ (83) 6 (91) 2 11 129 (2) 10. STOCKHOLDERS' EQUITY Under the Commercial Code of Japan (the "Code...

  • Page 33
    ... based on market prices for contracts with similar terms. The fair value of option contracts and interest rate swap contracts are estimated based on the quotes obtained from financial institutions. Non-capitalized finance leases Due within one year ...Due after one year ... 2000 ¥3,694 6,068...

  • Page 34
    ...years ended March 31, 2000, 1999 and 1998 is shown in the tables below. 1) Business segment information is as follows: Millions of yen Audiovisual and informationrelated business Eliminations and unallocation Entertainment business Total Consolidated total 2000: Sales External sales... 32 JVC 2000

  • Page 35
    ...394,610 ¥ 69,601 ¥ 59,033 Thousands of U.S. dollars ¥ 623,712 Japan Americas Europe Asia Total Elimination and unallocation 2000: Sales External sales...Intersegment sales ...Total sales ...Operating expenses ...Operating income (loss)...Identifiable assets... $3,927,085 2,251,765 6,178...

  • Page 36
    ...: Millions of yen Americas Europe Asia Other area Total 2000 Overseas sales ...Consolidated sales ...Ratio of overseas sales to consolidated sales ...1999 Overseas sales ...Consolidated sales ...Ratio of overseas sales to consolidated sales ...1998 Overseas sales ...Consolidated sales ...Ratio of...

  • Page 37
    ... balance sheets of Victor Company of Japan, Limited (a Japanese corporation) and subsidiaries as of March 31, 2000 and 1999 and the related consolidated statements of operations, stockholders' equity and cash flows for each of the three years in the period ended March 31, 2000, expressed in Japanese...

  • Page 38
    ... JVC International (Europe) Ltd. c/o JVC (U.K.) Ltd. JVC House, JVC Business Park, 12 Priestley Way, London NW2 7BA, United Kingdom Telephone: 0208-208-7592 JVC Professional Products (U.K.) Ltd. Ullswater House, Kendal Avenue, London W3 0XA, United Kingdom Telephone: 0208-896-6000 JVC Manufacturing...

  • Page 39
    ... 81, Tuas South Avenue 1, Singapore 637783 Telephone: 863-2234 JVC Electronics Singapore Pte. Ltd. 79, Ayer Rajah Industrial Estate, Singapore 139890, Republic of Singapore Telephone: 776-4711 JVC Sales & Services (Malaysia) Sdn. Bhd. 5, Jalan U1/23, Hicom Glenmarie Industrial Park, 40150 Shah Alam...

  • Page 40
    ... JVC Disc America, Co. (Division of JVC America, Inc.) JVC Industrial de Mexico, S.A. de C.V. JVC Manufacturing U.K. Ltd. JVC Video Manufacturing Europe GmbH J2T Video (Tonnerre) S.A. JVC Electronics Singapore Pte. Ltd. JVC Electronics Malaysia Sdn. Bhd. Philips and JVC Video Malaysia Sdn. Bhd. JVC...

  • Page 41
    ... JVC Asia Pte. Ltd. JVC America, Inc. JVC Manufacturing U.K. Ltd. JVC Video Manufacturing Europe GmbH JVC Electronics Singapore Pte. Ltd. JVC Electronics Malaysia Sdn. Bhd. JVC Manufacturing (Thailand) Co., Ltd. JVC Components (Thailand) Co., Ltd. JVC Finance B.V. JVC Entertainment, Inc. JVC (China...

  • Page 42
    VICTOR COMPANY OF JAPAN, LIMITED Printed in Japan