Wacom 2012 Annual Report Download - page 4

Firstly, please let me express our sincere appreciation for your unchanging support to Wacom during FY29. The year
was full of unexpected business risks, but thanks to your support, Wacom could manage them and grew the
business successfully. We are pleased to present Wacom’s Annual Report for our 29th fiscal year, representing the
results from April 1, 2011 through March 31, 2012.
Under our corporate vision of “creating harmony between people and technology”, we have been serving the world
with natural, intuitive and human-friendly user interface solutions to help our customers. We are proud that our
products serve a wide range of professional users around the world in creating 3D films and games, auto designs,
as well as medical and education solutions, etc. Also, our products are used by a wide range of consumer users at
home who enjoy creativity and sharing with friends. Our technology is helping to create new category products such
as Smartphones, e-Books and tablet devices.
In the spirit of our brand concept “Open up. Sense more.”, Wacom will continue to pursue making natural user
interface solutions to support human creativity and for enriching life.
How did we do in our 29th fiscal year?
We started FY29 with unprecedented business risks caused by the earthquake in Japan. During the fiscal year our
business was also affected by other risks such as the flood in Thailand, European credit crisis and economic
slowdown in emerging countries as well as rapid appreciation of the Japanese Yen. Our business in FY29 was
marked with the test of our resiliency against business risks and unfavorable market environments.
In our branded product business, while managing supply chain risks, we successfully developed and launched new
generation products in professional and consumer product lines, and continued to grow our digital signature
products in financial markets. We also expanded our numbers of users in mobile segments by introducing new
category products such as “Bamboo Stylus” , an accessory type pen for iPad, “Bamboo Paper” , a note-taking
application for iPad, as well as “Inkling” , a pen for digital sketching.
In our component business, revenue grew significantly with the mass production and shipment of pen components
for “Samsung Galaxy Note” Smartphone. The traditional tablet PC business and e-Books grew steadily as well.
For supporting the growth and for mitigating business risks, we also invested in development of the SCM
organization in China, establishment of a key component supply base in China and stated the operation on a new
ERP system.
As a result, for the fiscal year ending March 31, 2012, we recorded net sales of ¥40,706 million (up 23.2%),
operating income of ¥4,067 million (up 25.1%), ordinary income of ¥3,892 million (up 15.7%) and net income of
¥2,181 million (up 10.9%).
Where are we heading in our 30th fiscal year?
For our 30th fiscal year we expect to see a slow recovery of the global economy, mainly lead by emerging markets.
However the growing uncertainty from European credit risk and economic slowdown on a global scale will continue
to be lingering risk factors. Japanese Yen will stay strong as Euro uncertainty remains. U.S. and other key counties
continue to stimulate the economy. In the IT industry Smartphones and tablet-type devices will establish themselves
as the new mainstream IT platforms and start impacting the PC industry.
During FY30 we will continue to enhance our global leadership through new technology developments, new products
for professionals, consumers and business users. Also we will expand our brand awareness among general
consumer users through new pen products and applications for tablet-type devices such as iPad.
In our component business, we will strive to establish the leadership in Smartphone and Windows 8 based tablet
devices, as well as building a foundation for touch component segments. In the area of business infrastructure
development, we will enhance the SCM organization for component business and ERP support for Asia Pacific
countries.
Taking into account our business outlook and necessary investments for the future, we project net sales of ¥50,400
million (up 23.8%), operating income of ¥5,600 million (up 37.7%), ordinary income of ¥5,570 million (up 43.1%), and
net income of ¥3,600 million (up 65.0%) based on the assumed exchange rate of ¥75 per 1 US dollar and ¥100 per 1
EURO for the fiscal year ending March 31, 2013.
We regret that the mid-term business plan of WP-1015 that targets net sales of ¥100 billion and operating income
over 15% by the fiscal year ending March 31, 2014 will not be achievable within the original time frame. Taking into
account the rapidly changing market environment, the result in FY30 and high volatility in currency exchange rate, we
will need to revise the mid-term plan. For FY30, we will focus on achieving our financial target and improving our ROE
while maintaining the ongoing risk measures.
Your dividend
To thank you for your support and in reflecting the financial result for the fiscal year, we offered an ordinary dividend
of ¥3,000 per share to our shareholders as of March 31, 2012. While we will manage the financial base carefully, we
intend to continue stable dividend payouts and take other investor return measures as we see fit.
Our message to you
As the IT industry shifts toward natural and intuitive user interface solutions, we see a wide range of new
opportunities ahead of us. We are committed to enhance our corporate value through the development of leading
user interface technologies, global product and market leadership, investment in global talents and investment in
business infrastructure while improve efficiency and profitability. We take our social responsibility seriously and
continue to improve our corporate governance and culture of compliance.
Your support is invaluable and is essential to our continuing success. We thank you very much again for your
unchanging support.
To Our Shareholders
Masahiko Yamada
President & CEO
Wacom enhances the life experience
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by creating harmony between people and technology.