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Business Segment Overview
12 Victor Company of Japan, Limited
Consumer Electronics
An integral part of JVC’s corporate identity, the Consumer Electronics segment’s goal as a core business is to deliver truly
moving experiences and total customer satisfaction through high-quality sound and images. Looking at growth potential and
profitability, D-ILA equipped products and LCD TVs are driving this segment’s growth, and video cameras and car AV systems
are generating a substantial portion of its revenues.
In fiscal 2006, the Consumer Electronics segment posted sales of ¥600.4 billion, representing a 4% decline from the previ-
ous fiscal year and accounting for 74.4% of total Group sales. In addition, the segment reported an operating loss of ¥9.6 bil-
lion, representing a ¥19.9 billion decline from the previous fiscal year. This was the key factor contributing to the downturn in
the Group’s performance.
D-ILA Equipped Products
The D-ILA business is one of this segment’s growth drivers that use JVC’s proprietary,
in-house manufactured reflective LCD device “D-ILA” as a key device. HD-ILA hybrid
projection TVs incorporate this device to achieve energy efficiency along with bright,
high-resolution large-screen images. In fact, our 61-inch screen hybrid projection TV
received the Fiscal 2005 Energy Conservation Grand Prize’s Chairman’s Award from the
Energy Conservation Center, Japan. In July 2004, JVC began selling HD-ILA hybrid pro-
jection TVs in North America and has since positioned these products as the third JVC
option for large-screen flat-panel TVs, along with plasma and LCD TVs.
In fiscal 2006, we achieved a more than 2.5-fold increase in the sales volume of HD-
ILA hybrid projection TVs in North America by expanding retail channels, mainly local
mass market retailers and AV specialty stores, and increasing product recognition
through proactive marketing. JVC launched its HD-ILA hybrid projection TVs in Japan in
June 2005, in China and other parts of Asia in fall 2005, and in Europe in 2006 to raise
sales worldwide. In addition, the Company enhanced its HD-ILA projection TV lineup in
fall 2005 with the addition of 1,080 pixel full HD sets capable of reproducing digital high-
definition broadcasts without any loss of image quality.
In fiscal 2007, JVC will move from the development stage to full-fledged operations,
working to meet its target of total sales of 240,000 sets, representing 73% year-on-year
growth. Looking at strategies by region, the Company plans to further expand its sales
channels in North America, focusing on warehouse clubs, and commence the full-scale
introduction of HD-ILA hybrid projection TVs in Europe and countries in Asia outside of
2000400 600 800
’06
’05
’04
’03
’02
600.4
627.3
638.1
675.0
641.3
Sales (Billions of yen)
% of Total FY2006 Sales
74.4%
Full High-Definition HD-ILA Hybrid
Projection TV with New Genessa/
D.I.S.T. DynaPix Technology
HD-ILA hybrid projection TVs are the third JVC
option for large-screen flat-panel TVs, along
with plasma and LCD TVs. Our HD-ILA hybrid
projection TVs incorporate our newly devel-
oped 0.7-inch full high-definition microdisplay
device “D-ILA” to achieve 1,920 x 1,080 pixel
resolution capable of producing true-to-life, full
high-definition images.