JVC 2000 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 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

4JVC 2000
Fiscal 2003 Objective:
Revitalize the Profit Structure and
Achieve ¥1 Trillion
in Consolidated Net Sales
during the current fiscal 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 is proceeding with a program to reduce personnel to a 10,000-employee
structure on a non-consolidated basis by March 2001. Although currency fluctuations are expected to adversely
effect income during the current term, we anticipate an overall increase in profits due to the absence of a charge
for restructuring subsidiaries in fiscal 2000. As a result, JVC forecasts net income of ¥3 billion in fiscal 2001.
Objectives for Fiscal 2003 Our mid-term objective is to achieve ¥1 trillion in consolidated net sales in
fiscal 2003. Management has prioritized ROE and ROA as primary numerical targets in increasing asset efficiency.
The major focus of our efforts is switching to a business structure with profit margins higher than that of consumer
electronics, centered on components operations and entertainment operations. JVC will focus on fields of growth
and promote the aggressive development of high-value-added products, aiming for consumer electronics,
components and entertainment operations to each contribute 30% to operating income, with professional systems
making up the remaining 10%.
We expect components operations to have a high operating profit margin. Demand is steadily rising for “VIL”
PWBs targeting the mobile phone market. High-value-added deflection yokes are poised to further increase their
share of the market. Amid progress in higher frequencies and more compactness in various equipment,
Semiconductor Package Substrates, which mount unpackaged semiconductor chips on “VIL” PWBs, are also a
promising product.
Entertainment operations are also likely to secure a high operating profit margin. With strengths in both
hardware and software, JVC offers total content solutions through its broadcasting and distribution businesses,
which provide services ranging from content to production support and systems, and through its lineup of digital