Wacom 2007 Annual Report Download

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Creating harmony between people and technology
ANNUAL REPORT 2007
2007
CODE 6727

Table of contents

  • Page 1
    ANNUAL REPORT 2007 CODE 6727 2007 C r e a t i n g h a r m o ny bet ween peopl e and t e c h n o l o g y

  • Page 2
    ...creators around the world, and it has since become an indispensable tool in the field. Wacom's interactive pen displays that allow users to work directly on an LCD display are now popular among a wide range of businesses, including medical firms, transportation/shipping companies and a host of other...

  • Page 3
    ... X60 Tablet as the world's first product to incorporate Penabled Dual Touch, an advanced sensor technology developed by Wacom. Penabled Dual Touch is a system solution that combines our electromagnetic induction sensor and the touch sensor. This technology enables users to input data into PCs using...

  • Page 4
    ...) (Tablet PCs, mobile phones, PDAs, games, ePaper, etc.) Graphic design Medical Control panel industry Electrical machinery industry Machine assembling industry Automotive industry Food industry Medical equipment industry Education Business Administration Pen sensor technology Customers 3

  • Page 5
    ... Singapore as a sales base for the South and Southeast Asian markets ECAD/dio Ver. 7.0 released Lenovo's Tablet PC adopts Wacom's Penabled Dual Touch technology The Company receives the first "Disclosure Newcomer Award" from the Tokyo Stock Exchange Bamboo, which works seamlessly with Windows Vista...

  • Page 6
    ...by providing natural and intuitive user interface solutions. To achieve this corporate vision, we have focused on the research, development, and application of proprietary sensor technologies and the expansion of global business. Around the world today, Wacom's pen tablets are highly acclaimed as an...

  • Page 7
    ... The world's first tablet operated by cordless electronic pen developed. Core technology established with electronic pens. Broadband Ubiquitous Pen Input 50,000 Net sales Operating income Electronic seals and other security applications Pen sensor components Interactive pen displays Tablets for...

  • Page 8
    ... Vancouver, Washington, in the United States. The company is not only responsible for sales and customer support in North and Latin America, but also plays a central role in global marketing and product planning for professional pen tablets, and the development of driver software. Wacom Europe GmbH...

  • Page 9
    .... Wacom Russia Wacom Europe GmbH America 31.6% Wacom Tech. Corp. Wacom Co., Ltd. Wacom Digital Solutions Co., Ltd. Wacom China Corp. Shanghai Office Taipei Office Wacom Singapore Pte Ltd. Wacom Australia Pty. Ltd. Wacom China Corporation (WCC) WCC was established in 2000 in Beijing. The company...

  • Page 10
    ...the development, manufacture, and sales of pen tablets, interactive pen displays, pen sensor components, and related software. Pen tablets are computer data entry devices consisting of an electronic pen and a tablet. They allow users to input data just as if they were using a regular pen to write or...

  • Page 11
    ...tablet developed for business and general PC use that unlocks enhanced pen-based standard features in Windows Vista. Interactive Pen Displays An interactive pen display allows the user to work with the pen directly on screen. We have two product lines: the Cintiq series for photographers, designers...

  • Page 12
    ...of interactive pen displays, instructors can directly enter teaching materials on an LCD display and have them instantly displayed on a large screen. In addition, the use of TV phones and Web-based whiteboards facilitates remote instruction and online correction of student work. Business The use of...

  • Page 13
    ... systems for electrical engineering firms that specialize in the design of electrical appliances and control equipment, as well as mechanical engineering firms. This segment is also responsible for sales and the provision of customer support and maintenance services for product data management (PDM...

  • Page 14
    ... Shimoda Product Management Division Joseph Deal Wacom Technology Corporation (From left) Yasuyuki Fujishima, Takeshi Oki, Wataru Hasegawa, Masahiko Yamada, Shigeki Komiyama, Sadao Yamamoto Han St offels Wacom Europe GmbH Corporate Governance The Board of Directors and Board of Corporate Auditors...

  • Page 15
    ... Overview of Business Performance 19 Consolidated Balance Sheets 21 Consolidated Statements of Income 22 Consolidated Statements of Changes in Net Assets 23 Consolidated Statements of Cash Flows 24 Notes to Consolidated Financial Statements 32 Report of Independent Auditors 14

  • Page 16
    ...153 Cash and cash equivalents 3,681,204 4,901,184 6,698,503 13,287,904 16,320,081 Total net assets 5,697,957 12,299,482 12,990,943 14,109,303 21,032,863 25,152,191 Total assets Net income per share (yen and U.S. dollars):** Primary Diluted Equity ratio(%) Return on equity (%) Number of employees 28...

  • Page 17
    ... rapid growth in sales of interactive pen displays. Wacom was also involved in new user-interface technology development, new product development related to Windows Vista, business expansion in Asia-Pacific, preparation for a global branding initiative, J-SOX Act compliance, application for APA, and...

  • Page 18
    ... of digital design techniques and a growing base of users in Asia. The component business, which primarily serves Tablet PC manufacturers, released new sensor technology this fiscal year called "Penabled Dual Touch," a method of dual input using an electronic pen and finger touch on LCD monitors...

  • Page 19
    Financial Position Financial conditions At the end of the fiscal year under review, cash and cash equivalents increased by ¥2,365 million, or U.S. $20 million, compared to ¥6,109 million, or U.S. $52 million for the previous year, to ¥12,707 million, or U.S. $108 million. Cash flow conditions for...

  • Page 20
    ...Wacom Co., Ltd. and Its Subsidiaries Thousands of yen March 31 2006 2007 Thousands of U.S. dollars (Note 1) March 31 2007 ASSETS: Current assets: Cash...equipment (Note 2) Land Buildings and facilities Machinery, equipment ...notes are an integral part of these financial statements. - 363,419 - 11,553...

  • Page 21
    ...for employees (Notes 2 and 6) Accrued retirement benefits for directors and statutory corporate auditors (Note 2) Other long-term liabilities Total long-term liabilities Total liabilities NET ASSETS: Shareholders' equity: Common stock, Authorized : 1, 380, 000 shares Issued : 418, 696 shares in 2007...

  • Page 22
    ...853,274 17,071 (1,104) 15,967 $24,170 U.S. dollars (Note 1) Net income Yen Per share of common stock (Note 15) Net income Primary Diluted Cash dividends applicable to the year The accompanying notes are an integral part of these financial statements. ¥5,420.51 ¥5,283.96 ¥1,000.00 ¥6,886.19...

  • Page 23
    ... currency translation adjustments (Note 2) Common stock Retained earnings Total Net Assets Year ended March 31, 2006 Issuance of new stocks Net income Cash dividends (Note 10) Bonuses to directors and statutory corporate auditors Other Year ended March 31, 2007 $32,217 1,565 - - - - $33,782...

  • Page 24
    ... paid Proceeds from issuance of stock Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (Notes 2 and 11...

  • Page 25
    ... statements have been prepared from the consolidated financial statements of Wacom Co., Ltd. (the "Company") filed with the Director of the Kanto Local Finance Bureau in accordance with the Securities and Exchange Law of Japan and its related accounting regulations, and in conformity with accounting...

  • Page 26
    .... (Change in accounting policy) Effective from the year ended March 31, 2007, the Company adopted "Accounting Standards Board Statement No. 4, Accounting Standard for Directors' Bonus" issued by the Accounting Standards Board of Japan on November 29, 2005. The effect on net income of the adoption...

  • Page 27
    ... price or quotations are not available. Thousands of Thousands of U.S. dollars yen March 31, 2007 Book carrying Book carrying amount amount Buildings and facilities Land ¥1,153,184 1,125,168 ¥2,278,352 ¥- - ¥- $- - $- Held-to-maturity debt securities Share stocks invested in affiliates...

  • Page 28
    ...31 2006 2007 Thousands of U.S. dollars Year ended March 31 2007 Advertising expenses Provision for allowance for doubtful accounts Salaries Pension expenses Provisions for retirement benefits of directors and statutory corporate auditors Provisions for bonuses to employees Provisions for bonuses to...

  • Page 29
    ... per share (Thousands (dollar) of U.S. dollars) Record date Effective date Deferred tax assets: Inventory-inter-company profit Accrued retirement benefits Accrued bonuses Accrued severance indemnities for directors and statutory corporate auditors Enterprise tax Software development costs...

  • Page 30
    ... price equivalents of the leased properties comprise interest expense equivalents and insurance, maintenance and certain other operating costs. Interest expense equivalents are allocated using the interest method over the lease terms. Machinery, equipment and vehicles Tools and furniture Software...

  • Page 31
    ... 567,430 Thousands of U.S. dollars Year ended March 31, 2007 ECS Elimination/ Total business Corporate Consolidated ESD business Exercise periods Stock option to purchase newly issued shares November 8, 2002 June 26, 2003 June 24, 2004 June 23, 2005 19,160 7,440 1,200 800 28,600 17,659 158...

  • Page 32
    ... geographic area where the Company or its subsidiaries are located. b) The countries in each geographic segment excluding Japan and U.S.A.: i) Europe: Germany, The United Kingdom ii) Asia/ Oceania: China, South Korea, Australia, Hong Kong and Singapore c) Elimination or Corporate expenses of ¥1,313...

  • Page 33
    Report of Independent Auditors 32

  • Page 34
    ... computer input devices • Professional pen tablets • Consumer pen tablets • Interactive pen displays • Pen sensor components 2. Engineering Collaborative Solutions (ECS) Business Development, manufacture, sale, support, and maintenance of industrial systems • Electronic design CAD software...

  • Page 35
    ... Stock Exchange Listing Tokyo Stock Exchange First Section (Trade code 6727) Share Data Total number of shares to be issued Total number of issued shares Total number of shareholders 1,380,000 418,696 25,581 Major Shareholders Name of shareholder Yoji Eto Japan Trustee Services Bank, Ltd. (Trust...

  • Page 36