Business Results Business Results October 27, 2003 Victor Company - PowerPoint PPT Presentation

2003.10.27 1 Fiscal 2004 First Half Fiscal 2004 First Half Business Results Business Results October 27, 2003 Victor Company of Japan, Ltd.

2003.10.27 S u m m a r y o f B u s i n e s s R e s u l t s 2 1 . D e c r e a s e o f n e t s a l e s , k e e p i n g i n c r e a s e o f o p e r a t i n g i n c o m e 1 . D e c r e a s e o f n e t s a l e s , k e e p i n g i n c r e a s e o f o p e r a t i n g i n c o m e a n d n e t i n c o m e a n d n e t i n c o m e ◆O p e r a t i n g i n c o m e : ¥ 1 0 . 3 b i l . （ I n i t i a l f o r e c a s t o n A p r i l 2 5 : ¥ 9 . 0 b i l . / 1 H F Y 0 3 : ¥ 8 . 9 b i l . / v s F Y 0 3 1 1 5 % ） ◆O p e r a t i n g i n c o m e : ¥ 1 0 . 3 b i l . （ I n i t i a l f o r e c a s t o n A p r i l 2 5 : ¥ 9 . 0 b i l . / 1 H F Y 0 3 : ¥ 8 . 9 b i l . / v s F Y 0 3 1 1 5 % ） ◆N e t i n c o m e : ¥ 3 . 5 b i l . （ I n i t i a l f o r e c a s t o n A p r i l 2 5 : ¥ 3 . 0 b i l . / 1 H F Y 0 3 : ¥ 1 . 4 b i l . / v s F Y 0 3 2 5 3 % ） ◆N e t i n c o m e : ¥ 3 . 5 b i l . （ I n i t i a l f o r e c a s t o n A p r i l 2 5 : ¥ 3 . 0 b i l . / 1 H F Y 0 3 : ¥ 1 . 4 b i l . / v s F Y 0 3 2 5 3 % ） ◆I n c r e a s e s a l e s o f S o f t w a r e & M e d i a b u s i n e s s ◆I n c r e a s e s a l e s o f S o f t w a r e & M e d i a b u s i n e s s （ R e s u l t : ¥ 2 . 4 b i l . / 1 H F Y 0 3 : ¥ 0 . 6 b i l . / ¥ 1 . 8 b i l . o f i m p r o v e m e n t v s F Y 0 3 ） （ R e s u l t : ¥ 2 . 4 b i l . / 1 H F Y 0 3 : ¥ 0 . 6 b i l . / ¥ 1 . 8 b i l . o f i m p r o v e m e n t v s F Y 0 3 ） 2 . D i f f i c u l t y i n c o n s u m e r e l e c t r o n i c s b u s i n e s s i n U S a n d J a p a n 2 . D i f f i c u l t y i n c o n s u m e r e l e c t r o n i c s b u s i n e s s i n U S a n d J a p a n ◆U S : G o o d r e s u l t i n D V C ( 1 3 6 % v s F Y 0 3 ) , b u t s l o w d o w n i n C R T T V ( 5 5 % v s F Y 0 3 ) ◆U S : G o o d r e s u l t i n D V C ( 1 3 6 % v s F Y 0 3 ) , b u t s l o w d o w n i n C R T T V ( 5 5 % v s F Y 0 3 ) ◆J a p a n : S o m e r e c o v e r y w i t h n e w p r o d u c t s i n t r o d u c t i o n b u t t h e s l o wd o w n o f a n a l o g p r o d u c t s w a s m u c h ◆J a p a n : S o m e r e c o v e r y w i t h n e w p r o d u c t s i n t r o d u c t i o n b u t t h e s l o wd o w n o f a n a l o g p r o d u c t s w a s m u c h g r e a t e r t h a n e x p e c t e d . . g r e a t e r t h a n e x p e c t e d . . 3 . S l u m p i n C o m p o n e n t s & D e v i c e s b u s i n e s s 3 . S l u m p i n C o m p o n e n t s & D e v i c e s b u s i n e s s ◆O p e r a t i n g i n c o m e : - ¥ 1 . 2 b i l . （ 1 H F Y 0 3 : ¥ 0 . 0 b i l . / c h a n g e f o r t h e w o r s e b y - ¥ 1 . 2 b i l . v s F Y 0 3 ) ◆O p e r a t i n g i n c o m e : - ¥ 1 . 2 b i l . （ 1 H F Y 0 3 : ¥ 0 . 0 b i l . / c h a n g e f o r t h e w o r s e b y - ¥ 1 . 2 b i l . v s F Y 0 3 )

2003.10.27 1 H F Y 2 0 0 4 C o n s o l i d a t e d F i n a n c i a l R e s u l t s 3 （ ¥bil. ） ( C o n s o l i d a t e d ) C h a n g e v s C h a n g e v s R e s u l t A p r . 2 5 f o r e c a s t F Y 0 3 r e s u l t f o r e c a s t F Y 0 3 r e s u l t N e ts a l e s 4 6 2 . 7 4 9 0 . 0 4 9 2 . 5 9 4 % 9 4 % O p e r a t i n g 2 . 2 % 1 . 8 % 1 . 8 % i n c o m e 1 0 . 3 9 . 0 8 . 9 1 . 3 1 . 3 O r d i n a r y 1 . 6 % 1 . 4 % 1 . 2 % i n c o m e 7 . 3 6 . 8 6 . 0 0 . 5 1 . 3 N e t 0 . 8 % 0 . 6 % 0 . 3 % i n c o m e 3 . 5 3 . 0 1 . 4 0 . 5 2 . 1 ( P a r e n t ) C h a n g e v s C h a n g e v s R e s u l t A p r . 2 5 f o r e c a s t F Y 0 3 r e s u l t f o r e c a s t F Y 0 3 r e s u l t N e t s a l e s 2 5 4 . 3 2 5 0 . 5 2 7 6 . 5 1 0 2 % 9 2 % O p e r a t i n g 2 . 5 % 1 . 8 % 1 . 6 % i n c o m e 6 . 4 4 . 5 4 . 5 1 . 9 1 . 9 O r d i n a r y 2 . 1 % 1 . 8 % 1 . 4 % i n c o m e 5 . 3 4 . 4 3 . 8 0 . 9 1 . 5 1 . 5 % 1 . 3 % 0 . 7 % N e t i n c o m e 3 . 9 3 . 3 1 . 9 0 . 6 2 . 0

2003.10.27 S a l e s B r e a k d o w n 4 4 6 2 . 7 1H FY04 Result vs FY03 94% vs Forecast 94% 4 9 0 . 0 T o t a l 1H FY04 Forecast 4 9 2 . 5 1H FY03 Result 1 5 3 . 6 vs FY03 94% vs Forecast 99% 1 5 6 . 0 D o m e s t i c Composition ratio 33 ％（ FY03 33 ％） 1 6 3 . 7 3 0 9 . 1 vs FY03 94% vs Forecast 93% Composition ratio 67 ％ （ FY03 67 ％） 3 3 4 . 0 O v e r s e a s 3 2 8 . 8 Exch. rate 1H FY04 1H FY03 US ＄ ¥118 ¥123 EUR ¥133 ¥117

2003.10.27 C o n s u m e r E l e c t r o n i c s S a l e s R e s u l t s ( c o m p a r i s o n 5 （ Local currency base ） 1H in total : 82% 1H in total : 91% Domestic America 2Q vs 1Q : 130% Domestic America 2Q vs 1Q : 109% vs FY03 9 8 % 1Q 2Q 4:3TV 60% → 52% 55% → 49% VCR 1Q DVC 120% → 163% 2Q 84% → 69% VCR 8 3 % 8 2 % 151% → 353% LCD/PDP DVD 105% → 160% 8 1 % DVC 78% → 97% 1 Q 2 Q 1 Q 2 Q （ Local currency base ） （ Local currency base ） 1 0 6 % 1H in total : 100% 1H in total : 101% 1 0 5 % Europe Asia Europe Asia 2Q vs 1Q : 109% 2Q vs 1Q : 114% 9 5 % 9 5 % 1Q 2Q 1Q 2Q Car Elec. 96% → 103% 4:3TV 100% → 107% PDP 246% → 899% PDP 261% → 617% DVC 102% → 118% DVC 73% → 96% 1 Q 2 Q 1 Q 2 Q

2003.10.27 B r e a k d o w n o f C h a n g e i n O p e r a t i n g I n c o m e ( v s 1 H F Y 0 3 ) 6 F Y 0 3 F Y 0 4 F Y 0 3 F Y 0 4 (¥bil.) ¦ ¥ 8 . 9 4 ¥ 1 0 . 2 6 ¦ ¥ 8 . 9 4 ¥ 1 0 . 2 6 Balance from FY03:¥ ＋ 1.32bil. Positive factors Negative factors Positive factors Negative factors M a t e r i a l s c o s t P r i c e r e d u c t i o n d e c l i n e 1 8 . 8 2 ( 1 8 . 1 9 ) S a l e s d e c r e a s e E x c h a n g e r a t e ( 9 . 9 6 ) i m p r o v e m e n t US$ ： ¥118 ← FY03: ¥129 6 . 9 8 EUR ： ¥128 ← FY03: ¥115 I m p r o v e m e n t o f M u s i c O t h e r s ( 0 . 2 1 ) s o f t w a r e b u s i n e s s : 1 . 1 8 S t r u c t u r e r e f o r m e f f e c t F Y 0 4 2 . 7 r e s u l t F Y 0 3 1 0 . 2 6 r e s u l t 8 . 9 4

2003.10.27 O p e r a t i n g I n c o m e b y S e g m e n t 7 【 by business domain 】 ( ¥ b i l . ） 1 Q 2 Q 1 H C h a n g e C h a n g e C h a n g e R e s u l t F Y 0 3 3 R e s u l t F Y 0 3 3 R e s u l t F Y 0 3 v s F Y 0 v s F Y 0 v s F Y 0 3 C o n s u m e r 4 . 1 5 . 5 ( 1 . 4 ) 6 . 5 5 . 4 1 . 1 1 0 . 6 1 0 . 9 ( 0 . 3 ) E l e c t r o n i c s P r o f e s s i o n a l ( 1 . 8 ) ( 2 . 2 ) 0 . 4 0 . 6 ( 0 . 2 ) 0 . 8 ( 1 . 2 ) ( 2 . 4 ) 1 . 2 E l e c t r o n i c s C o m p o n e n t s ( 0 . 3 ) ( 0 . 2 ) ( 0 . 1 ) ( 0 . 9 ) 0 . 2 ( 1 . 1 ) ( 1 . 2 ) 0 . 0 ( 1 . 2 ) & D e v i c e s S o f t w a r e & 0 . 6 ( 0 . 8 ) 1 . 4 1 . 8 1 . 4 0 . 4 2 . 4 0 . 6 1 . 8 M e d i a 【 by region 】 ( ¥ b i l . ） 1 Q 2 Q 1 H C h a n g e C h a n g e C h a n g e R e s u l t F Y 0 3 3 R e s u l t F Y 0 3 3 R e s u l t F Y 0 3 v s F Y 0 v s F Y 0 v s F Y 0 3 J a p a n 2 . 6 0 . 8 1 . 8 6 . 6 6 . 3 0 . 3 9 . 2 7 . 1 2 . 1 A m e r i c a ( 0 . 6 ) 0 . 2 ( 0 . 8 ) ( 1 . 7 ) 0 . 9 ( 2 . 6 ) ( 2 . 3 ) 1 . 1 ( 3 . 4 ) E u r o p e 0 . 9 1 . 1 ( 0 . 2 ) 2 . 4 1 . 2 1 . 2 3 . 3 2 . 3 1 . 0 A s i a 0 . 5 1 . 0 ( 0 . 5 ) 1 . 8 1 . 2 0 . 6 2 . 3 2 . 2 0 . 1