JVC 2001 Annual Report Download

Download and view the complete annual report

Please find the complete 2001 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 48

  • 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
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

VICTOR COMPANY OF JAPAN, LIMITED
Annual Report 2001
Year ended March 31, 2001
Corporate Data

Table of contents

  • Page 1
    Corporate Data VICTOR COMPANY OF JAPAN, LIMITED Annual Report 2001 Year ended March 31, 2001

  • Page 2
    On What Contents To Our Customers, Employees and Stockholders Where Is Our Focus? It's on Core Markets It's on Core Technology It's on Entertainment Board of Directors and Corporate Auditors Five-Year Summary Directory Corporate Data 6 10 14 18 19 42 45 2 We are recapturing the essence Cautionary ...

  • Page 3
    of JVC by reasserting our strengths We Do Best Core Markets Core Technology Entertainment VICTOR COMPANY OF JAPAN, LIMITED 1>

  • Page 4
    Masahiko Terada, President To Our Customers, Employees and Stockholders Focusing On What We Do Best JVC punctuated successive years of net losses in fiscal 2001, ended March 31, 2001. While we saw growth on both our top and bottom lines, we still have some fundamental issues to tackle. One is ...

  • Page 5
    ...million), reversing a year-ago loss of ¥5.3 billion. On June 28, 2001, I was elected as a director of Victor Company of Japan, Limited (JVC) at the annual meeting of stockholders and appointed president at a subsequent Board of Directors' meeting. I have taken the helm at a transitional time in the...

  • Page 6
    ... HIGH PERFORMANCE, HIGH-VALUE-ADDED CONSUMER ELECTRONICS Our product mix is also targeted for improvement. In the year ended March 31, 2001, the Consumer Electronics segment accounted for 64.1% of net sales, but a mere 0.6% of operating Financial Highlights Victor Company of Japan, Limited and its...

  • Page 7
    ...and Networking (D&N) Strategy to drive growth. As part of this strategy, we will restructure development and sales systems for consumer electronics. Key products in the D&N business include mini digital (DV) camcorders, D-VHS, Direct-Drive Image Light Amplifier (D-ILA) projectors and hybrid TVs with...

  • Page 8
    Where Is Our Focus? It's on Core Markets JVC's consumer and professional electronics operations have seen profits decline in recent years. Restoring profitability to these core businesses is thus a prime focus at JVC. Sweeping structural reforms are being ...

  • Page 9
    Digital video camcorder, GR-DVP3 Network camera system, VN-C3WU D-VHS system, HM-DH30000U Digital and Networking products Digital video camcorder, GR-DV 2000

  • Page 10
    ... video camcorder (DVC); a high-definition, high-resolution D-ILA multimedia projector; a D-VHS system that can record digital high-vision broadcasts and also play conventional VHS videotapes; nextgeneration set-top boxes; an S-VHS hybrid recorder with a built-in HDD; an HDTV and an HDD-equipped TV...

  • Page 11
    ...-resolution images and superior sound quality by adding SD (Secure Digital) cards and e-commerce features to core products, including DVCs, digital still cameras (DSC), portable MD players, and Interlink mobile PCs equipped with innovative audiovisual functions.

  • Page 12
    < 10 VICTOR COMPANY OF JAPAN, LIMITED 11 > Where Is Our Focus? It's on Core Technology Video, sound and optical technology form the nucleus of our components and devices (C&D) business. We have taken full advantage of our superior technologies to develop a broader range of products. Today, this...

  • Page 13
    D-ILA projector, DLA-M2000L VIL printed wiring board Components and Devices products D-ILA panel module, DILA-SX070 Deflection yoke

  • Page 14
    ... medium-term management plan positions three products as stalwarts of the C&D business: deflection yokes, FDD motors and VIL printed wiring boards. To this core contingent of products we are adding new innovations such as ILA devices to expand the C&D business as a core earnings driver. VIL printed...

  • Page 15
    ... to establish an earnings stream from D-ILA devices by starting sales to outside customers in fiscal 2001, ending March 31, 2002. We are promoting ILA displays that use D-ILA devices as the quintessential component of home theater systems in the U.S. market. These multiuse displays let people enjoy...

  • Page 16
    ... 14 VICTOR COMPANY OF JAPAN, LIMITED 15 > Where Is Our Focus? It's on Entertainment Our entertainment software operations cover all aspects of creation, production, distribution and marketing. Our media operations, meanwhile, are responsible for the production and marketing of various recording...

  • Page 17
    Victor Aoyama studio Entertainment software and media Leon The Fifth Element Taxi 2

  • Page 18
    ... in entertainment software in Japan. Our approximate 20% share of the domestic music market highlights our presence, as does our approximate 15% share of video sales in Japan. In addition, we account for 70% of such visual software products as pre-recorded videocassettes and DVDs and 45% of CDs sold...

  • Page 19
    ... to in-house entertainment companies production of DVC tapes, and expanding sales of D-VHS tapes. In video operations, we are presently doubling production of DVD videos and moving swiftly to bring new products to the D-VHS market, as we lay the groundwork for a powerful digital media business. In...

  • Page 20
    ... System, and Logistics Yukihiro Tanii In charge of Corporate Accounting & Finance, and Interior Furniture Business Motoo Nishimura President, Entertainment Software Company; President, Victor Entertainment, Inc. Katsuhisa Muto Executive Vice President, AV & Multimedia Company; General Manager...

  • Page 21
    Five-Year Summary Victor Company of Japan, Limited and its consolidated subsidiaries Years ended March 31 Millions of yen 2001 2000 1999 1998 1997 Thousands of U.S. dollars (Note 1) 2001 For the year: Net sales ...Overseas ...Domestic ...Cost of sales ...Selling, general and administrative expenses...

  • Page 22
    ... ...2000 Sales ...Percentage ...Major Products ¥567.6 65.2% VCRs, camcorders, televisions, stereo systems, car audio systems, CD radio cassette tape players and telephones ¥598.6 64.1% 5.5% ¥127.3 10.6% ¥471.3 4.2% ¥83.9 9.0% (4.6)% ¥57.8 (9.8)% ¥26.1 (9.7)% ¥87.9 10.1% Professional-use...

  • Page 23
    ... overseas in digital video decks for broadcasting and delays in rolling out new D-ILA (Direct-Drive Image Light Amplifier) projectors. Offsetting these decreases somewhat were higher sales of professional audio systems and security camera systems as more large-scale retail stores were opened, and...

  • Page 24
    ... (US$238.7 million). Property, plant and equipment increased ¥4.5 billion to ¥117.6 billion (US$948.3 million), due partly to a ¥2.0 billion increase in machinery and equipment and vehicles as JVC made investments in the digital and networking area with the view to transforming the structure of...

  • Page 25
    ...-term bank loans and proceeds from the issuance of bonds to fund ness segments-Consumers Electronics, Professional Electronics, Components & Devices, Entertainment Softwares & Medias, and Other-reflecting the adoption of a "Company-in-Company" system in April 2000. Previously, there were 2 business...

  • Page 26
    ...: Cash and time deposits (including time deposits with maturities over three months of ¥108 million (US$871 thousand) in 2001 and ¥208 million in 2000) ...Marketable securities (Note 5) ...Notes and accounts receivable: Trade ...Unconsolidated subsidiaries and affiliated companies ...Allowance for...

  • Page 27
    ... AND STOCKHOLDERS' EQUITY 2001 2000 Thousands of U.S. dollars (Note 1) 2001 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...

  • Page 28
    ... Statements of Operations Victor Company of Japan, Limited and its consolidated subsidiaries Years ended March 31, 2001, 2000 and 1999 Millions of yen 2001 2000 1999 Thousands of U.S. dollars (Note 1) 2001 Net sales ...Costs and expenses: Cost of sales ...Selling, general and administrative...

  • Page 29
    ...Statements of Stockholders' Equity Victor Company of Japan, Limited and its consolidated subsidiaries Years ended March 31, 2001, 2000 and 1999 Number of Millions of yen Common stock Additional paid-in capital Retained earnings Net unrealized holding gains on securities Foreign currency translation...

  • Page 30
    ... (used in) provided by operating activities ...Cash flows from investing activities: Purchases of time deposits ...Purchases of property, plant and equipment ...Proceeds from sales of property, plant and equipment ...Purchases of marketable securities ...Sales of marketable securities ...Purchases...

  • Page 31
    ... expenditures ...Proceeds from sales of fixed assets ...Decrease in marketable securities ...Decrease in investment securities ...Decrease in investment in and advances to non-consolidated subsidiaries and affiliated companies ...Other ...Net cash used in investing activities ...Cash flows from...

  • Page 32
    ...2001, 2000 and 1999 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 33
    ...) and investment securities increased by the same amount compared with what would have been reported under the previous accounting policy. Derivatives and hedge accounting The new accounting standard for financial instruments, effective from the year ended March 31, 2001, requires companies to state...

  • Page 34
    ... could occur if convertible bonds or similar securities were converted into common stock exercised to result in the issuance of common stock. As the result of computation for the year ended March 31, 2001, and as the Company reported net losses for the years ended March 31, 2000, and 1999, inclusion...

  • Page 35
    ... ten years Total Available-for-sale securities Government bonds ...Corporate bonds ...Others ...Others ...Total ... $ 2,452 - 16,105 - $18,557 $ 8 - 42,274 - $ - 8,032 - 2,266 $ - - 15,919 - $ 2,460 8,032 74,298 2,266 $87,056 $42,282 $10,298 $15,919 < 32 VICTOR COMPANY OF JAPAN, LIMITED...

  • Page 36
    < 34 VICTOR COMPANY OF JAPAN, LIMITED 35 > Total sales of available-for-sale securities sold in the year ended March 31, 2001 amounted to ¥16,160 million ($130,323 thousand) and the gains amounted to ¥1,450 million ($11,694 thousand) and the losses amounted to ¥640 million ($5,161 thousand). ...

  • Page 37
    ...2001. The discount rate and the rate of expected return on plan assets used by the Company are 4.0% and 3.0%, respectively. The estimated amount of all retirement benefits to be paid at future retirement date is allocated equally to each service year using the estimated number of total service years...

  • Page 38
    ... yen March 31, 2000 Contract amount Book value Market value Unrealized gain (loss) Option contracts: Call: To sell U.S. dollars ...To sell Euros ...Put: To sell U.S. dollars ...To sell Euros ...Call: To buy U.S. dollars ...Put: To buy U.S. dollars ...To buy Euros ... 2000: Buildings and structures...

  • Page 39
    ... and information-related business and Entertainment business have been changed into five segments-Consumer electronics business, Professional electronics business, Components & Devices business, Entertainment Softwares & Medias business and Other. < 36 VICTOR COMPANY OF JAPAN, LIMITED 37 >

  • Page 40
    < 38 VICTOR COMPANY OF JAPAN, LIMITED 39 > Consolidated financial data for the year ended March 31, 2000, reclassified to conform with the current segments is as follows. Millions of yen Consumer electronics business Professional electronics business Entertainment Components Softwares & Devices &...

  • Page 41
    ... plans," effective April 1, 2000, the Companies adopted the new accounting standard, "Opinion on Setting Accounting Standard for Employees' Severance and Pension Benefits," issued by the Business Accounting Deliberation Council on June 16, 1998. As a result, operating income of Consumer electronics...

  • Page 42
    < 40 VICTOR COMPANY OF JAPAN, LIMITED 41 > As explained in Note 2 "Employees' retirement benefits and pension plans," effective April 1, 2000, the Companies adopted the new accounting standard, "Opinion on Setting Accounting Standard for Employees' Severance and Pension Benefits," issued by the ...

  • Page 43
    Report of Independent Public Accountants To the Stockholders and the Board of Directors of Victor Company of Japan, Limited: We have audited the accompanying consolidated balance sheets of Victor Company of Japan, Limited (a Japanese corporation) and subsidiaries as of March 31, 2001 and 2000 and ...

  • Page 44
    ... JVC America, Inc. JVC Magnetics America, Co. #1 JVC Road, Tuscaloosa, Alabama 35405, U.S.A. Telephone: 205-556-7111 JVC Disc America, Co. #2 JVC Road, Tuscaloosa, Alabama 35405, U.S.A. Telephone: 205-556-7111 JVC Industrial America, Inc. 2320 Paseo De Las Americas, Suite #205, San Diego, California...

  • Page 45
    ... Telephone: 775-0292 JVC Asia Logistics Centre 81, Tuas South Avenue 1, Singapore 637783 Telephone: 863-2234 JVC Electronics Singapore Pte. Ltd. 79, Ayer Rajah Crescent, Singapore 139955 Telephone: 776-4711 JVC Sales & Service (Malaysia) Sdn. Bhd. 5, Jalan U1/23, Hicom Glenmarie Industrial Park...

  • Page 46
    ....) 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 JVC Electronics Singapore Pte. Ltd. JVC Electronics Malaysia Sdn. Bhd. Philips and JVC Video Malaysia Sdn. Bhd. JVC Manufacturing (Thailand...

  • Page 47
    ... Pte. Ltd. JVC Electronics Malaysia Sdn. Bhd. JVC Gulf Fze JVC Manufacturing (Thailand) Co., Ltd. JVC Components (Thailand) Co., Ltd. P.T. JVC Electronics Indonesia JVC (China) Investment Co., Ltd. JVC Shanghai Electronics Co., Ltd. JVC Beijing Electronic Industries Co., Ltd. Note: JVC's fiscal 2001...

  • Page 48
    VICTOR COMPANY OF JAPAN, LIMITED This annual report was printed on recycled paper. Printed in Japan