Casio 2005 Annual Report Download - page 18

16 CASIO COMPUTER CO., LTD.
NET SALES
Net sales rose 6.8% year-on-year on a consolidated basis in fiscal 2005, to ¥559,006 million.
This was chiefly the result of strong performances by our strategic businesses – digital cameras,
electronic dictionaries, and cellular phones.
Millions of yen
2005 2004
Electronics:
Consumer ............................................................................................. ¥198,515 ¥188,960
Timepieces ............................................................................................ 68,473 70,131
Mobile Network Solutions (MNS) ........................................................... 131,408 97,805
System Equipment................................................................................. 49,447 48,706
Subtotal .............................................................................................. 447,843 405,602
Electronic Components & Others:
Electronic Components.......................................................................... 78,230 86,903
Others ................................................................................................... 32,933 31,023
Subtotal .............................................................................................. 111,163 117,926
Total..................................................................................................... ¥559,006 ¥523,528
Results by Segment
Sales in the Electronics Segment increased 10.4% to ¥447,843 million, accounting for 80.1%
of net sales.
In the Consumer Category, sales increased 5.1% to ¥198,515 million. Exilim digital cam-
eras continued their strong performance from the previous year and won strong support as a
leading brand in the digital camera market. Moreover, electronic dictionaries, for which Casio
controls an overwhelming share of the market in Japan, also recorded growth as a result of
overseas expansion to South Korea and other markets.
In the Timepieces Category, sales fell 2.4% to ¥68,473 million. The market for solar-
powered radio-controlled watches, however, steadily expanded, primarily in Japan and North
America. Profits improved significantly due to changes to the product mix to emphasize profit
ratios by reducing the proportion of regular models and expanding the lineup of high-value-
added models.
In the MNS Category, sales rose 34.4% to ¥131,408 million. The A5406CA cellular phone,
which is equipped with the world’s first 3.2-megapixel camera, and the W21CA WIN model,
which features the “PC site viewer” that can browse web pages for PCs, performed strongly.
In addition, Casio established the joint development venture Casio Hitachi Mobile
Communications Co., Ltd. in April 2004, and since then we have succeeded in speeding up
the development process and improving efficiency in this segment.
In the System Equipment Category, sales rose 1.5% to ¥49,447 million, thanks to robust
sales of page printers driven by an advanced business model in the solution business, which
provides customers with the optimal combination of hardware and applications.
Operating Income (Loss) and
Operating Income Margin
-15
-10
-5
0
5
10
15
20
25
30
35
40
0504030201
(Billions of yen)
-3
-2
-1
0
1
2
3
4
5
6
7
8
(%)
Operating income (loss)
Operating income margin
Net Income (Loss)
-25
-20
-15
-10
-5
0
5
10
15
20
25
0504030201
(Billions of yen)
Net Sales
0
100
200
300
400
500
600
0504030201
(Billions of yen)
Management’s Discussion and Analysis