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Victor Company of Japan, Limited 35
NET SALES BY SEGMENT
Billions of yen
Consumer Professional Components
electronics electronics & Devices Software & Media Other
business business business business business Total
2005
Sales ¥627.3 ¥68.3 ¥43.2 ¥95.9 ¥5.9 ¥840.6
Percentage 74.6% 8.1% 5.1% 11.4% 0.8% 100.0%
Change (1.7)% 1.2% (30.5)% (35.2)% (6.3)% (8.8)%
Domestic Sales ¥135.3 ¥46.7 ¥3.7 ¥81.6 ¥5.7 ¥273.0
Change 23.7% (6.4)% (7.5)% (38.3)% (11.1)% (9.6)%
Overseas Sales ¥492.0 ¥21.6 ¥39.5 ¥14.3 ¥0.2 ¥567.6
Change (6.9)% 22.7% (31.9)% (8.3)% 100.0% (8.5)%
2004
Sales ¥638.1 ¥67.5 ¥62.0 ¥148.0 ¥6.4 ¥922.0
Percentage 69.2% 7.3% 6.7% 16.1% 0.7% 100.0%
Major Products VCRs, Professional-use Components for Audio and visual Interior furniture
camcorders, and educational- use in computer software production facilities
CRT TVs, use systems, displays, including CDs,
LCD TVs, Plasma TVs, information optical pickups, DVDs and
rear projection TVs, systems, motors, videotapes, and
stereo systems, karaoke and “VIL” PWBs recording media
car AV systems, systems, and
DVD players, DVD projectors
recorders, and
portable audio
Financial Review
Europe lost ground, resulting in an 8.5% decline in overseas
sales, to ¥567.6 billion.
Cost of sales fell 10.2%, to ¥565.0 billion, and the gross
profit margin rose from 31.8% in the previous fiscal year to
32.8%. Selling, general and administrative (SG&A) expenses
slipped 0.9%, to ¥265.2 billion.
Despite the implementation of cost-cutting initiatives,
operating income fell 58.8%, to ¥10.4 billion, owing to a
drop in the retail price of consumer electronics products,
lower overseas sales of consumer electronics products, and
weak domestic sales of software.
Overview of Fiscal 2005
In fiscal 2005, ended March 31, 2005, net sales declined
8.8%, to ¥840.6 billion. Sales of consumer electronics
products in Japan grew, encouraged by the launch of LCD
TVs, DVD recorders, hard disk camcorders, and other digi-
tal products; however, the weak performance of music soft-
ware and lower music CD sales due to the expiration of
consignment contracts caused domestic sales to contract
9.6%, to ¥273.0 billion. Although sales in Asia excluding
Japan and sales of LCD TVs worldwide expanded, cam-
corders struggled overseas, and sales of home theaters in