JVC 2006 Annual Report Download - page 20

18 Victor Company of Japan, Limited
In fiscal 2006, although sales edged down 1% from the previous fiscal year, to ¥67.6 bil-
lion, operating income advanced ¥0.4 billion, to ¥0.7 billion. In security products, one of
the Professional Electronics segment’s mainstay businesses, market expansion spurred
by growing worldwide demand for higher safety was countered by fiercer competition
and falling prices due to a rise in market participation. In addition, a clear shift in demand
arose in Japan, where private-sector demand grew and public-sector demand was
sluggish. Although JVC spiced up its product lineup with such additions as hard disk
recorders with a built-in DVD drive and shifted the focus of its product development and
marketing activities to the private sector, these initiatives were not sufficient enough to
avoid a slight downturn in the performance of security products. Presentation systems,
however, achieved double-digit sales growth, supported by the launch of professional
HDV high-definition camera recorders. These HDV camera recorders rapidly captured
an approximately 15% worldwide share of the market for similar products, gaining a
foothold for fiscal 2007 and beyond.
In fiscal 2007, we will rework this segment to establish security systems, professional
audio systems, and “creation” products as areas of focus while endeavoring to expand
these core operations and strengthen our earning power. As for security systems, we will
strive to achieve double-digit, year-on-year growth in sales and earnings by bolstering our
lineup of high-definition surveillance cameras with networking capabilities, further concen-
trating our domestic sales force in the Tokyo metropolitan area, accelerating the shift in
our focus to private-sector demand in Japan, and building relationships with major over-
seas partners. In professional audio systems, we will also reinforce private-sector product
offerings while working to generate sales synergies with the security systems business,
with the aim of boosting sales and earnings, mainly in the retail industry. Turning to the
“creation” products business, JVC will strive to achieve double-digit growth in sales and
marked improvement in revenues by bolstering its lineup of professional HDV camera
recorders and enhancing its offerings for new markets as well as shoring up its editing
equipment and other peripherals operations by forging alliances with software compa-
nies, increasing market recognition, and enhancing product usability.
Professional HDV High-Definition
Camera Recorder
JVC offers a compact, high-performance HD
solution that meets the video production
needs of today.
Hard Disk Recorder with Built-in
DVD Drive
Records high-definition surveillance camera
images that can be replayed on most DVD
players, thanks to its DVD-Video format
compatibility.
Professional Electronics
20040 60 80 100
’06
’05
’04
’03
’02
68.3
67.5
71.0
78.3
67.6
Sales (Billions of yen)
% of Total FY2006 Sales
8.4%
Anchored in strong products featuring proprietary differentiating technologies, this segment specializes in two key areas—
security products for which the Company has long enjoyed a robust sales foundation and presentation systems, including
professional cameras. Going forward, we will strengthen cooperation with the Consumer Electronics business segment by
developing core technologies and components while working to achieve our targets and moving forward with initiatives in the
high-end consumer market.