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10 Victor Company of Japan, Limited
In fiscal 2006, the second year of our medium-term management plan Leap Ahead 21, we will focus on acceler-
ating our growth strategy and implementing continuous structural reform.
Accelerating Our Growth Strategy
In fiscal 2006, we will concentrate on consumer electronics operations as we accelerate our
growth strategy. We aim to achieve double-digit growth in sales worldwide by creating robust
product lineups in key growth businesses and strengthening our partnerships with distributors.
The main strategies of our five key growth businesses are as follows.
High Definition Displays
With HD-ILA rear projection TVs, which have been launched in the United States and Japan
and are slated for introduction in China and other countries in Asia, flat panel display (FPD) TVs,
and cathode ray tube (CRT) TVs as the cornerstones of this business, we will strive to achieve
the fiscal 2007 sales target of ¥300 billion set out in Leap Ahead 21 ahead of schedule.
Digital High Density Storage
In light of major change in the market, we will downsize operations to maintain a place for our
mainstay DVD recorders. We will streamline our product lineup and concentrate on such high-
value-added products as three-in-one DVD/VHS/hard disk drive combo recorders to enhance
profitability.
Network Audio Visual (AV) Systems
We will seek to recover lost ground by reinforcing our mainstay digital video camera operations
and seek to create a new recording culture by expanding our lineup of “Everio” hard disk cam-
corders. In professional electronics, we will introduce the world’s first ProHD compact shoulder
camera recorder GY-HD100 and work to achieve a comeback in our presentation system oper-
ations. Going forward, we will aggressively expand our core car electronics business, which
continued to perform well in fiscal 2005, worldwide while developing new car AV products,
including DVD receivers and navigation systems.
Management Targets (for FY2007)
• Net Sales: ¥1,100 Billion
• Operating Income: ¥55 Billion (5.0% Operating Margin)
• CCM*: Plus
• Net Cash: Plus
*CCM: Capital Cost Management
Leap Ahead