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2JVC 2000
Fiscal 2001 Objective: Reinforce
Management by Strengthening
High-Value-Added Digital and
Networking Products
Movements in currency exchange rates also influenced profitability. Expenses were recorded, applying
downward pressure on profits, as a result of reviewing unprofitable businesses in fiscal 2000. Major expenses
included the liquidation of projector operations at a subsidiary in the United States, a switchover to high-value-
added TV models at a plant in the United Kingdom and investment to strengthen the structure of a sales subsidiary
in Brazil. Although personnel expenses declined on account of progress in reducing personnel in Japan, expenses
were incurred for special severance payments.
Efforts in Fiscal 2001 Due to the downturn in performance in fiscal 2000, JVC is prioritizing efforts to bolster
the soundness of management and eliminate losses. First, the Company will promote improvements to profit
margins by expanding its high-value-added digital and networking product lineup. Fiscal 2001 is expected to be a
year of significant advances in digitization and networking in Japan, as broadcast satellite (BS) digital broadcasting
will begin in December 2000 and the household penetration rate of PCs is projected to exceed 40%. Targeting
these growth markets, JVC aims to boost sales of digital and networking products.
In the current fiscal year, JVC will focus efforts on mini digital video (DV) camcorders, which grew 67% on a unit
base in fiscal 2000. Including professional DV, our goal is net sales of ¥91 billion, an increase of 21% compared
with the previous fiscal year. The Company is bolstering production capacity more than 60% in line with the
objective of increasing its mini DV camcorder share of the world market from 27% to 35%. The Company will also
concentrate efforts on 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
Video
Camcorder
Sales
¥91.0 billion
(+16.0 billion)
Image
Light
Amplifier
Sales
¥13.0 billion
(+6.0 billion)
Optical
Disc
Sales
¥47.0 billion
(+7.0 billion)
Digital
Media
Sales
¥10.0 billion
(+2.0 billion)
Digital & Network Product Lineup JVC Focuses in Fiscal 2001