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Fiscal 2005 Results
Fiscal 2005 was a tough year for JVC. Net sales dropped 9% from the previous fiscal year, oper-
ating income declined 59%, and a net loss of ¥1.9 billion was recorded. Needless to say, results
were substantially below expectations. We revised our performance forecasts not once, but
twice, unable to get a clear read on deteriorating conditions. This is something that I, as presi-
dent, deeply regret. We largely attribute underperformance to our inability to keep up in the digital
age, more specifically to respond rapidly to dramatic changes in the market environment spurred
by the digitization of products.
All of us at JVC, from myself to business segment leaders to staff, take this unfortunate turn of
events seriously and are committed to making a fresh start. In fiscal 2006, we will work with
renewed determination toward a turnaround in performance by striking a balance between
Message from the President
Victor Company of Japan, Limited 5
In fiscal 2005, ended March 31, 2005, Victor Company of Japan, Limited (JVC), reported
declines in net sales and operating income. These results and the posting of an extraor-
dinary loss mainly due to special retirement allowances stemming from structural reform
produced a net loss for the fiscal year under review—the first since fiscal 2002.
In fiscal 2006, we will move forward with our medium-term management plan Leap
Ahead 21 with newfound resolve, working to boost revenues and earnings and deliver
“The Perfect Experience.”
Masahiko Terada, President