Wacom 2010 Annual Report Download - page 5

7
How did we do in our 27th year?
The 27th fiscal year started in the midst of a global
economic crisis, full of uncertainty. Up to Q2, our
business suffered from weak demand for tablets and a
slowdown in our component business. In Q3 the tablet
business began to recover, along with the global
economic recovery, just in time for the launch of our
new products. On the other hand, the component
shipments for Windows 7 PCs did not reach our original
expectations.
Further impacted by appreciation of the Japanese yen
against other key currencies, we closed the fiscal year
with negative growth in both revenue and profit.
In the area of technology and product development, we
made significant progress and launched many new
products. Intuos4 - wireless model, the new Bamboo
series with pen and multi-finger touch functions, the
new interactive pen display models and the Nextbeat
digital DJ device, are among those launched during the
fiscal year. We also successfully started volume
production of multi-finger touch sensors for major PC
manufacturers.
As a result, for the fiscal year ending March 31, 2010,
we recorded net sales of ¥32,045 million (down 5.2%),
operating income of ¥3,128 million (down 27.5%),
ordinary income of ¥3,156 million (down 24.5%), and
net income of ¥1,968 million (down 23.7%).
Where are we heading in our 28th year?
For the 28th fiscal year, we expect to see continued
recovery of the global economy and some acceleration
driven by emerging markets in the second half. In addi-
tion to the growth of professional markets, we expect
interactive pen display markets to grow in medical,
education, and security segments. For the component
business, new product categories such as Slate type
PCs and e-Books will emerge as new customer seg-
ments.
Taking into account our business outlook and neces-
sary investments for the future, we project net sales of
¥37,800 million (up 18.0%), operating income of ¥3,820
million (up 22.1%), ordinary income of ¥3,780 million
(up 19.8%), and net income of ¥2,370 million (up
20.4%) for the fiscal year ending March 31, 2011.
We also announced the new mid-term business plan
WP-1015 that targets net sales of ¥100 billion and oper-
ating income over 15% by the fiscal year ending March
31, 2014.
During the mid-term period, we expect to see strong
expansion of digital content industries in emerging
regions and growth of our consumer business following
the growth of the digital content industry globally. Fur-
thermore, continued IT investments in medical and
educational fields, including investments in digital gov-
WP1015
100,000
80,000
60,000
40,000
20,000
0
2010 2011 2012 2013 2014
Net sales Operating income
For the year ended March 31
(Millions of yen)
ernment, and improved digital security, will increase our
business opportunities. We expect to grow our compo-
nent business beyond traditional PC segments, serving
new segments such as Slate PCs, e-Books and other
new mobile platforms.
While we will continue to enhance our global leadership
in natural user interface solutions, we will invest in
development of emerging markets such as China, India,
and South America. Building solid business founda-
tions and global brand leadership for the future is our
focus for emerging markets and to leverage our com-
ponent business, continuing to strive in delivering natu-
ral and intuitive user interface technologies for a wide
range of IT platforms.
Your dividend
To thank you for your support and in reflecting the
financial result for the fiscal year, we offered an ordi-
nary dividend of ¥3,000 per share to our shareholders
as of March 31, 2010. While we will manage the finan-
cial base carefully, we intend to continue stable divi-
dend payouts and take other investor return measures
as we see fit.
Our message to you
We are committed to enhancing our corporate value
through the ongoing development of exciting new tech-
nologies, investment in talented people and develop-
ment of our business infrastructure. We will accelerate
our business growth, improve efficiency and profitabil-
ity. We take our social responsibility seriously and con-
tinue to improve our corporate governance and compli-
ance.
Your support is invaluable and is essential to our con-
tinuing success. We thank you very much for your
unchanging support.
8
Business Model
Customers
Tablet business
Management Platform
R & D Marketing &
Sales
Supply Chain
Management
Product
Management
Partnerships
User Needs
• Professional tablets
• Consumer tablets
• Interactive displays
Other businesses
• Software of CAD systems
for electrical and mechani-
cal engineering
• Professional DJ device
• Graphic Design
film, animation, comics, games, automo-
tive,advertising, broadcasting, etc
• Medical
hospitals, dental clinics,
medical offices, etc.
• Education
universities, schools, prep schools,
e-learning, etc.
• Business
office systems, shop systems,
call centers, signature verification, etc.
• Administraion
national and local government
• Pen Sensor Technology
PCs, mobile phones, PDAs, games,
ePaper, etc.
• Touch Sensor Technology
PCs, mobile phone, games,
ePaper, POS terminal, digital signage,
game console, TV, etc.
• Control Panel Industry
• Electrical Machinery Industry
• Machine Assembling Industry
• Automotive Industry
• Food Industry
• Medical Equipment Industry
• Operating Systems (OS) vendor
• Application vendor
• Display vendor
• Stationary goods / vendor
Component
business
• Pen sensor components
• Touch sensor components