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JVC 2000 1
PRESIDENT’SMESSAGE
Fiscal 2000: Aiming to
Lessen Dependence
on the Low Profit Margin Business
of Consumer Electronics
To our shareholders and investors: I am pleased to present this report on our current position, our efforts in
reinforcing management and our objective of achieving ¥1 trillion in consolidated net sales by fiscal 2003.
Fiscal 2000 Results During fiscal 2000, ended March 31, 2000, Victor Company of Japan, Limited (JVC)
recorded consolidated net sales of ¥870,235 million (US$8,209.8 million), an operating loss of ¥8,019 million
(US$75.7 million) and a net loss of ¥5,341 million (US$50.4 million), results substantially below performance
estimates stated in last year’s annual report.
Since I was appointed president, we have advanced efforts toward reinvigorating JVC in line with the medium-
term 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 electronics, and we must realign the business
structure by expanding professional systems, components and software operations, which have higher profit
margins than consumer electronics.
However, growth in these operations has stagnated, and the revenue structure—dependent on consumer
electronics operations—remains virtually unchanged. Domestic sales in consumer electronics operations were
stagnant due to the economic recession in Japan. Although sales were favorable overseas, results were diluted by
a corporate structure swayed by currency fluctuations.
The primary factor behind the fall in revenue during fiscal 2000 was the adverse impact of currency fluctuations.
On a local currency basis, however, consumer electronics achieved strong growth. Overseas net sales grew 15%
overall, with gains of 12% in North America, 18% in Europe and 19% in Asia. Consumer electronics accounted for
67.2% of total net sales, an increase of 2.5 percentage points, owing to strong demand overseas. Overseas sales
represented 62.7% of total net sales, up 2.8 percentage points. As a result, consolidated net sales for the fiscal
year under review, after removing the impact of currency fluctuations, would have increased 2.0%, compared with
actual negative growth of 8.1%.