JVC 2004 Annual Report Download - page 17

Annual Report 2004 15.
HD-ILA microdisplay rear projection TV with a three-chip
engine and the highest-density microdisplay device in this
product category
challenges in the business environment.
These efforts were supported by
initiatives in the Value Creation 21 plan
designed to reform JVC’s day-to-day
operations in the areas of component
procurement and manufacturing. I
believe this was a key reason for the
improvement in our operating margin
during fiscal 2004.
In one crucial area for us—ensuring a
steady stream of “Only One” products—
we made some progress, and we are
now ready to take on our rivals in the
digital product category.
In playing its part to achieve the
Leap Ahead 21 plan objective of
accelerating growth, the Consumer
Electronics segment will develop and
launch highly competitive and dynamic
“Only One” products that will realize
powerful growth. Continuous structural
reform is the other pillar of the plan. I
feel we made real progress in making
sure product development, manufac-
turing and retailing functions dovetail
more efficiently, and this will provide
the basis for realizing tangible syner-
gies in future structural reform initia-
tives and accelerating growth.
Consumer Electronics and the
Leap Ahead 21 Plan
JVC’s Leap Ahead 21 plan positions
the Consumer Electronics segment to
play a key role in accelerating the
company’s growth. Specifically, we
plan to focus on the display and optical
disk businesses to boost sales, aiming
to double the size of both businesses
compared to the year under review by
the end of the plan on March 31, 2007.
Fiscal 2004 Operating Results
During the year under review, digital
technology became more widespread
in the consumer electronics industry,
supported by the growing use of digital
and high-definition technologies in the
broadcasting, communications and
recording fields, and the launch of
terrestrial digital broadcasting in Japan.
This is a positive trend for the Consumer
Electronics segment: the infrastructure
for our high-definition, high-quality
technologies—which give us a distinc-
tive edge in the market—is steadily
falling into place.
In the past year, we put in place an
operating structure capable of reliably
generating earnings by flexibly respond-
ing to price reductions and other
Aiming to Boost Top-line
Growth
Strong sales of car AV systems and
camcorders in the European market,
especially South and East Europe and
Russia, were one of the factors helping
us to raise profitability in the year under
review. In car AV systems, we have
successfully integrated product devel-
opment, manufacturing and retailing
functions, enabling us to launch prod-
ucts that will satisfy future demand. In
the camcorder product category, we
will work to maintain high margins by
tapping market demand with new
“Only One” products that incorporate
the latest recording media.
However, it’s vital that we change
the composition of our product lineup.
This will mean increasingly focusing
on new and growth products such as
D-ILA (direct drive image light amplifier)
rear projection TVs, PDP (plasma display
panel) TVs, LCD (liquid crystal display)
TVs, and DVD recorders. Specifically,
we are aiming to achieve the target set
out in the Leap Ahead 21 plan: create
a product portfolio where 60% of
Group sales are generated by new and
growth products. To reach this goal,
we are accelerating the launch of
strategic “Only One” products that
High-definition digital video camera, the world’s first for
the consumer market
Eiichi Tsuchiya