Wacom 2007 Annual Report Download - page 7

Business developments and
performance in the 24th scal year
Our business environment remained relativety strong
despite concerns over a slowdown in the U.S. economy
and weak sales of new PCs caused by the delay of the
Windows Vista release. Our operating results for the
scal year improved due to steady growth of
professional products and strong sales of consumer
products, as well as a rapid growth in sales of interactive
pen displays. Particularly in the interactive pen display
business, we saw a rapid expansion in the scope of
product use throughout the world, illustrated by sales
that nearly doubled in the United States. We also
concentrated on other focus areas, such as improving
information disclosure, promoting investor relations
activities outside Japan, developing new technologies,
reinforcing supply chain management (SCM) for
production and logistics, and expanding operating
bases in the Asian and Pacic regions.
Business outlook and business
strategy for the 25th scal year
For the 25th scal year (ending March 31, 2008), Wacom
expects the world economy to remain relatively stable
despite several areas of concern, such as uctuations in
exchange rates and a possible slowdown in the U.S.
economy. The business environment for PC-related
sectors is expected to improve with the dissemination
of Windows Vista. Under these circumstances, we will
launch new Windows Vista-compliant products to
deepen the penetration of pen tablets into the general
consumer market and to expand the eld of
applications for interactive pen displays. In the
components business, we will focus on supplying
interactive LCD module solutions and expanding into
new elds such as cellular phones, PDAs, and digital
paper, while at the same time providing a full-scale
support for the rapid growth of Tablet PCs. We will also
continue to actively invest in developing our
foundation for further business growth in such areas as
new technologies and products development, SCM
system and global IT infrastructure, global brand
enhancement, and compliance with the J-SOX Act.
We will continue to apply maximum group-wide eorts
to achieve the goals set in WP515*, our mid-term
business plan, at the earliest possible time.
Considering the business outlook and necessary
investments for future , we project net sales of ¥35,000
million (up 21.6%), operating income of ¥5,050 million
(up 10.6%), ordinary income of ¥5,000 million (up 7.8%),
and net income of ¥3,000 million (up 5.1%) for the scal
year ending March 31, 2008.
* WP515, our mid-term business plan, sets goals for net sales of \50 billion and
operating income margin higher than 15% for the scal year ending March 31, 2010.
Dividend policy and message to our
shareholders
To express our appreciation for constant support and to
reect the nancial results of this scal year ending
March 31, 2007, we have decided to oer an ordinary
dividend of ¥1,500 per share to our shareholders as of
March 31, 2007. While reinforcing our nancial base, we
intend to increase the payout ratio and continue to
stably pay out dividends.
We will continue our eorts to improve corporate value
by emphasizing the development of new technologies,
the retention of talented people and the reinforcement
of our business infrastructure, and by accelerating our
business growth and achieving higher protability. In
addition, as a global company, we are committed to
meeting the expectations of our shareholders and
other stakeholders, and fullling our social responsibility
as a corporate citizen by improving corporate
governance and compliance. We deeply appreciate
your support, which is essential to Wacom’s success.
Growth Strategy
60,000
(Millions of yen)
’06 ’07 ’08 ’09 ’10
50,000
40,000
30,000
20,000
10,000
0
Net sales
Operating income
WP515
eholders
1983 1990 1995 2002 2007
“Digital Paper” stated in this report is a registered trademark of Fuji Xerox Co., Ltd.
Toward becoming
the de facto standard
for the Digital Paper era
Near
future
Internet Ubiquitous Pen Input
Broadband
The world’s rst
tablet operated by
cordless electronic pen
developed.
Core technology
established with
electronic pens.
Tablets for
professional use
Tablets for
consumer use
Interactive
pen displays
Pen sensor
components
Electronic seals
and other security
applications
Digitizer
and software
Development and Sales
Tablet market
CAD
market
Input
market
Technology,
expertise, and
sales of PDM
Development
and sales of ECAD
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