Casio 2007 Annual Report Download - page 5

During the term under review, ended March 31,
2007 (fi scal 2007), Casio sought to achieve its targets
with a focus on its strategic businesses, including
timepieces, digital cameras, electronic dictionaries
and cell phones. In addition, the Company took steps
to bolster its management effi ciency, by improving
indices such as profi t margin and capital effi ciency.
As a result of this approach, net sales grew 7.0%
year on year, to ¥620.7 billion in the term under
review.
By business segment, sales in the Electronics
Segment rose 11.4% year-on-year, to ¥527.2
billion. A number of factors contributed to this
performance. The digital camera business continued
its strong performance from the previous term and
registered positive results, thanks to the release of the
EX-Z1000, the world’s fi rst digital camera to achieve
10.1 megapixels in a compact body. Growing sales
in overseas markets, achieved through proactive
measures, also contributed to the strong results.
Aggressive sales of Oceanus, our fl agship brand
for radio-controlled watches, in North America,
in addition to Japan and Europe, produced a
year-on-year revenue increase for timepieces. In the
cell phone business, following the success of W41CA,
the best selling model for KDDI Corporation’s cell
phone service “au” we successfully released W51CA,
compatible with one-segment TV broadcasting,
which enables users to watch high-quality pictures
for many hours. In contrast, sales in the Electronic
Components and Others Segment declined 12.5%
year on year, to ¥93.5 billion, as Casio Micronics
Co., Ltd. reported falling revenues, and unit prices of
TFT-LCDs declined.
Looking at profi tability, as a result of rising sales
of digital cameras and cell phones, action taken to
add value to radio-controlled watches and electronic
dictionaries through greater product appeal, as
well as measures to raise productivity, including
strategies to improve the effi ciency of development
and operations, operating income in the Electronics
Segment rose 29.1% year on year, to ¥53.8 billion.
The operating income margin was 10.2%. The
Electronic Components and Others Segment recorded
a loss of ¥700 million, refl ecting falling unit prices of
TFT-LCDs and the fall in revenues reported by Casio
Micronics Co., Ltd. As a result, consolidated operating
income rose 11.5% year on year, to ¥48.0 billion. Net
income grew 5.9% year on year, to ¥25.1 billion. The
Company consequently achieved record sales and net
income for the fourth consecutive year.
We increased our annual dividend for the term
under review to ¥23 per share, up ¥3 per share from
the ¥20 per share paid in the previous term. This
increase refl ects the performance reported above, and
is the fourth consecutive annual dividend increase.
Business Performance for Fiscal 2007
3
Annual Report 2007