2. Corporate Profile & Presentation JVC

3. Contents n Victor Company of Japan n JVC Europe Company n Europe: Background information

4. Victor Company of Japan Ltd Basic information n Founded in 1929 n Global HQ in Yokohama - Japan n Current President: Mr Takeo Shuzui n Turnover FY 1999: Yen 870 billion (consolidated) n Number of employees: u Japan: 11,000 u Overseas: 13,000

5. Victor Company of Japan Ltd n Sales Breakdown FY99 u Consumer: Y 585bn u Professional: Y 88bn u Components: Y 67bn u Entertainment: Y125bn u Others Y 5bn

6. The World is our Stage n JVC is a truely multinational company with sales, marketing and R & D facilities in Asia, Pacific, Europe, America and Africa n Manufacturing facilities can be found from Japan to Berlin and from USA to China n This global presence enables us to be at the forefront of rapidly changing Digital, Multi Media and Network age.

7. Company in Company Structure n From April 1, 2000 JVC announced reforms to its Group Structure, in order to seize further growth opportunities and enhance profitability in the new digital and network age. n Whilst enhancing its business areas, the new structure will simultaneously aim at a maximisation of shareholder value.

8. Company in Company Structure n The new 4 Business Based Companies: u AV & Multimedia Company u Component & Device Company u Media Products Company u Entertainment Software Company

9. Company in Company Structure n 3 Regional Companies were established at the same time: u Europe Company u Americas Company u Asia & Middle East Company

10. Company in Company Structure n Each of these companies has authority and clear responsibility in order to promote local management, accelerate decision making and maximise profitability. n Each company develops a package of marketing, development, production, sales and Customer Satisfaction guidelines, geared for local markets, businesses and regional areas

11. Technology Creator n AV & Multi Media Company u Home AV Network Business Unit u Personal & Mobile Network Business Unit u Communication Network Business Unit u Projection & System Network Business Unit u IT Network Division F AV & Multi Media Laboratory F VDR Development Department

12. Technology Creator n Component & Device Company u integrate global component manufacturing and marketing into 1 organisation n Media Products Company u Rinkan Centre: disc media u Mito Centre: recording media u Mastering Centre: new media, mastering & authoring u Business Development Centre: development of new business models for network age

13. Technology Creator n Entertainment Software Company u Victor Entertainment Inc. u Universal Victor Inc. u Techchiku Entertainment Inc. u Newly established “Victor Pictures Division” F Development of visual software business

14. Corporate Milestones n Since its creation in 1929, JVC has continued to develop groundbreaking new technologies, from the first vinyl records in Japan to the VHS system. u 2000: Introduction of ILA Projection TV u 1999: 1st manufacturer to introduce D-VHS to the market in Europe (US/Japan in 1997) u 1997: Introduction of the world’s first and smallest Digital Video Camera

15. Corporate Milestones u 1991: Introduction of Widescreen TV u 1982: Introduction of VHS-C format u 1976: Invention of VHS-system for home use u 1958: Development of 45/45 degrees groove system for stereo vinyl records u 1939: Japan’s first TV u 1930: Production of vinyl records and record players

16. Cultural Contributor n Culture comes in many shapes and forms. JVC supports the culture of “excitement”. n As a leading player in the global entertainment industry, JVC enables people all over the world to enjoy a range of cultural events and festivals

17. Cultural Contributor n JVC has been an Official Sponsor of UEFA and FIFA football events since 1980 u EURO2000 was a great success and expectations are high for the 2002 World Cup Japan/Korea. F Did you know that the final match of the next world cup will be played in Yokohoma, home of JVC?

18. Cultural Contributor n Sponsor of JVC Jazz Festivals since 1984 n JVC Tokyo Video Festival: u an international competition for video films created by professionals and amateurs n Kennedy Space Centre Visitor Complex

19. Europe Company JVC Europe Ltd

20. Europe Company n The JVC Europe Company was formally established on April 1, 2000 u President: Kunihiko Sato n Maximise local strengths and autonomy u faster response to changing markets u further improvement of marketshares u expanding sales and profit

21. Organisation Chart

22. Sales & Marketing Organisation n A fundamental role in the sales and marketing of JVC products and services in Europe is full-filled by its network of wholly-owned Subsidiaries and Distributors u consumer and professional products F sales & marketing support F after sales support F servicing

23. Sales & Marketing Organisation Red: JVC Subsidiary Yellow: JVC Distributor Representative Office

24. Position in Europe n The consumer electronics industry in Europe continues to experience tough trading conditions in Europe u increased competition u accelerated price erosion u stable/declining markets (HiFi, CTV, VCR) n In this environment, JVC has increased its marketshare steadily over recent years u No. 4 in Europe with marketshare > 5.3%

25. CE33 Marketshare JVC in Europe Source: GfK Market Share JVC in Europe (10), value base, Feb-July 2000

26. European Awards n JVC’s leading edge technology and design continues to be recognised by Europe’s leading specialist magazines u EISA and TIPA Awards are voted annually by leading journalists from Europe’s Photo, Video, Audio and Home Entertainment Magazines

27. European Awards n During the last 4 years, JVC products were voted “European product of the Year” for not less than 12 times” u 10 EISA Awards u 2 TIPA Awards n For 2000/2001 JVC recently received: u EISA: European VCR of the Year: HR-S9700 u EISA: European Home Theatre System of the Year: TH-A10R

28. Manufacturing in Europe n Underlining its prime position in the European CE market, JVC has 2 large manufacturing facilities in Europe u JVC Manufacturing UK (Scotland): Production of CTVs and professional monitors for European market u JVC Video Europe (Berlin): Production of VCRs for European market

29. Logistics in Europe n In addition to the 2 manufacturing facilities in Europe, which are both capable of distribution directly to our key retailer’s warehouses/distribution centres, JVC also opened recently a brand new, state-of-the- art European Logistics centre & warehouse in Boom, near Antwerp u > 15,000 sq.m.

30. JVC Pro Systems n In addition to “traditional” consumer electronics products, JVC is also a leading player in the Pro Systems Field n Production & Post Production u Cameras, Camcorders, VTR, Displays, Monitor, Non-Linear Editing Systems n Security & CCTV Systems u CCTV cameras, domes, VCRs,.

31. JVC Pro Systems n Display & Presentation u LCD, Plasma, D-ILA and CRT display and monitor systems n Network & Storage Solutions u Optical Disc libraries, Wireless LAN, n Duplicators

32. JVC Component & Devices n Although not immediately visible to the eye, JVC is one of the largest manufacturers of key components and devices for the electronics, IT and Telecom industries n Products include: u optical pickup for CD/DVD, video heads and drums, deflection yokes, high density multi layer build-up PWB, high precision motors

33. JVC Companies across Europe n JVC Europe Ltd u Headquarters JVC Europe Company u Head Office: London u President: Mr K. Sato u Established: April 1998 u Number of staff: 42 u www.jvc-europe.com

34. JVC Companies across Europe n JVC UK Ltd u Sales & Marketing company for the UK and Ireland u Head Office: London u Satellite offices: Dublin and Leeds u President: Mr N. Tachikawa u Established: Aug. 1973 u Number of staff: 171 u www.jvc.co.uk

35. JVC Companies across Europe n JVC France S.A. u Sales & Marketing company for France u Head Office: Carrieres-sur-Seine (Paris) u President: Mr N. Takeuchi u Established: Oct. 1996 (merger of JVC Audio France and JVC Video France) u Number of staff: 124 u www.jvc.fr

36. JVC Companies across Europe n JVC Deutschland GmbH u Sales & Marketing company for Germany u Head Office: Friedberg (Hessen) nr. Frankfurt u President: Mr H. Yoshida u Established: Mar. 1978 u Number of staff: 101 u www.jvc.de

37. JVC Companies across Europe n JVC Austria GmbH u Sales & Marketing company for Austria u Head Office: Vienna u President: Mr A. Lassner u Established: Jun. 1984 u Number of staff: 26 u www.jvc.at

38. JVC Companies across Europe n JVC Nederland BV u Sales & Marketing company for the Netherlands u Head Office: Leiden u President: Mr J. Shimada u Established: Mar. 1988 u Number of staff: 70 u www.jvc.nl

39. JVC Companies across Europe n JVC Belgium S.A. u Sales & Marketing company for Belgium and Luxembourg u Head Office: Brussels u President: Mr J. Swaelens u Established: Mar. 1988 u Number of staff: 60 u www.jvc.be

40. JVC Companies across Europe n JVC Italia Spa. u Sales & Marketing company for Italy u Head Office: Milan u President: Mr D. Fujii u Established: Apr. 1988 u Number of staff: 30 u www.jvc-europe.com

41. JVC Companies across Europe n JVC Espana S.A. u Sales & Marketing company for Spain, Andorra and Balearic and Canaric isles u Head Office: Barcelona u President: Mr Y. Eguchi u Established: Apr. 1989 u Number of staff: 87 u www.jvc.es

42. JVC Companies across Europe n JVC Svenska AB / JVC Scandinavia AB u JVC Svenska: Sales and Marketing company for Sweden u JVC Scandinavia: Regional HQ for Nordic markets: Sweden, Norway, Denmark u Head Office: Jarfalla - Stockholm u President: Mr M. Horikoshi u Established: JVC Svenska: 1982 and JVC Scandinavia: 2000 u Number of staff: JVC Svenska: 33 and JVC Scandinavia: 2

43. JVC Companies across Europe n JVC Norge A/S u Sales and Marketing company for Norway u Head Office: Tonsberg u President: Mr J.W. Abrahamsen u Established: June 1984 u Number of staff: 28 u www.jvc.no

44. JVC Companies across Europe n JVC Danmark A/S u Sales and Marketing company for Denmark u Head Office: Tastrup u President: Mr J.W. Abrahamsen u Established: June 1984 u Number of staff: 25 u www.jvc.dk

45. JVC Companies across Europe n JVC International (Europe) Ltd n Sales and Marketing company for Central and Eastern Europe, incl. Russia u Head Office: London u Liaison Offices: Moscow, Budapest, Kiev u President: Mr Suetake u Established: August 1996 u Number of staff: 40 u www.jvc.ru

46. JVC Companies across Europe n JVC Polska Sp.z.o.o n Sales and Marketing company for Poland u Head Office: Warsaw u President: Mr K. Minami u Established: April 1997 u Number of staff: 23 u www.jvc.com.pl

47. JVC Companies across Europe n JVC Czech u Sales and Marketing company for Czech Republic u Head Office: Prague u President: Mr T. Shirai u Established: April 1997 u Number of staff: 17

48. JVC Companies across Europe n JVC Professional UK Ltd u Sales and Marketing company for UK and Ireland: Pro Products only u Head Office: London u President: Mr K. Kubota u Established: July 1988 u Number of staff: 369 u www.jvcpro.eu

49. JVC Companies across Europe n JVC Professional Products GmbH u Sales and Marketing company for Germany: Pro Products only u Head Office: Friedberg (Hessen) nr. Frankfurt u President: Mr P. Sibbe u Established: July 1988 u Number of staff: 63 u www.jvcpro.eu

50. JVC Companies across Europe n JVC Professional Italia SP u Sales and Marketing company for Italy: Pro Products only u Head Office: Milan u President: Mr Ito u Established: July 1988 u Number of staff: 36 u www.jvc-europe.com/jvcpro

51. JVC Companies across Europe n JVC Technology Europe GmbH u European centre for Product Testing and Monitoring new technological developments u Head Office: Friedberg, near Frankfurt u President: Mr Sasaki u Established: July 1991 u Number of staff: 13

52. JVC Companies across Europe n JVC Logistics Europe u European Distribution Centre u Head Office: Boom, near Antwerp (Belgium) u President: Mr Fukuda u Established: June 1999 u Number of staff: 44

53. JVC Companies across Europe n JVC Manufacturing UK Ltd u Manufacturing facility for CTV and Monitors for European market u Head Office: East Kilbride, Scotland u President: Mr Minakawa u Established: December 1987 u Number of staff: 550

54. JVC Companies across Europe n JVC Video Manufacturing Europe GmbH u Manufacturing facility for VCR/VTR for European market u Head Office: Berlin- Germany u President: Mr Yamamoto u Established: April 1994 u Number of staff: 275

55. EUROPE Key Data

56. EUROPE

57. EU and EMU n JVC Europe Company covers over 50 countries across West & East Europe n The European Union (EU) countries form the backbone of all commercial activities inside Europe and with trade to non- European markets

58. European Union-member states GermanyFranceUK NetherlandsBelgiumLuxembourg IrelandDenmarkItaly GreeceSpainPortugal AustriaFinlandSweden Free-Trade zone was established with the ultimate goal of reaching European Monetary Union with a single currency

59. Monetary Union: EMU n The “Maastricht Treaty” established the parameters of qualification into the European Monetary Union (EMU) n On January 1, 1999, a single currency, EURO, was introduced in the initial 11 countries which qualified for entry into the EMU u also known as Euro Zone

60. Euro - Zone Countries AustriaItaly BelgiumLuxembourg FinlandNetherlands FrancePortugal GermanySpain Ireland In June 2000, Greece’s successfully applied for entry into the EMU and will join the EURO from January 1, 2001

61. Timetable: EMU/Euro n 1998: set-up European Central Bank (ECB - Frankfurt) n 1-Jan-1999 - 31-Dec.2001: Transition Period u Euro (€) introduced and legal currency in the Euro- zone. Conversion rates between €uro and old national currencies were fixed. u ECB responsible for setting interest rate in Euro-zone n 1-Jan-2002 - 30-Jun-2002: Dual Circulation Period u Euro coins and notes are introduced in Euro-zone, both Euro and old currencies are circulated n 1-Jul-2001: old currencies are withdrawn and only €uro currency can now be used inside Euro-zone

62. Conversion Rates €uro Germany€ 1 =DM 1.95583 France€ 1 = FFR 6.55957 Italy€ 1 = L 1936.27 Netherlands€ 1 = NLG 2.20371 Austria€ 1 =ATS 13.7603 Belgium/Lux€ 1 =BEF 40.3399 Finland€ 1 = FMK 5.94573 Ireland€ 1 = I£ 0.787564 Spain€ 1 = PTS 166.386 Portugal€ 1 = ESC 200.482

63. Euro vs. other currencies Sept. 2000 Jan.1999 Sept. 2000 Jan.1999 USA€ 1 = US$0.881.17 Japan€ 1 = JPY95132 UK€ 1 =UK£ 0.600.70 Switzerland€ 1 = SFR1.521.62 Greece€ 1 =GDR 339324 Denmark€ 1 =DKR 7.467.44 Sweden€ 1 =SKR 8.449.28 u Conversion rate for Greek Drachma into Euro is now monitored and will be fixed by December 2000 for entry into Euro-zone on 1st January 2001