Casio 2001 Annual Report Download - page 4

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2
TO OUR SHAREHOLDERS
To continue being an attractive company worthy of shareholders’ and investors’ attention, Casio directs its corpo-
rate management toward maximizing shareholders’ value. We created a three-year medium-term management
plan to further clarify this management stance, and began implementing this plan in the current fiscal year. While
we will be talking about this plan in greater detail below, we would first like to explain Casio’s performance in the
fiscal year ended March 31, 2001.
PERFORMANCE
Our operating environment on the whole remained severe. While we saw growth in demand for digital-, network-
and other IT-related areas, the worldwide PC industry entered a slowdown led by weaker demand in the United
States. In addition, inventories of cellular handsets rose around the world in the second half of 2000, and these in-
ventories led to declines in electronic component prices. And sales prices fell worldwide as global-scale market
competition intensified.
Amid this operating environment, Casio worked to strengthen its strategically important Mobile Network
Solutions (MNS) business and its Electronic Components business by allocating more of its management re-
sources toward these two areas.
We saw some tangible results from these efforts during the fiscal year under review, as consolidated net sales
rose 8.2% to ¥443,930 million. By business segment, sales of the Electronics segment grew 7.4% to ¥327,580 mil-
lion as sales in Casio’s MNS business more than doubled. Sales of the Electronic Components and Others
segment rose 10.3% to ¥116,350 million, with electronic components sales up nearly 40%.
Compared with previous fiscal year results, operating income was down 8.1% to ¥17,905 million. However, we
mainly attribute this decline to increases in cost of sales and selling, general and administrative (SG&A) expenses,