Casio 2002 Annual Report Download - page 5

2. Intensified cost-cutting measures
To reduce costs, we integrated and consolidated
our production base, moving it to continental Asia,
where China will serve as its hub. Moreover, we
closed our factory in the United States. As a result,
we achieved a reduction of 3,000 personnel. We
will review the effects of these measures at an
early stage in addition to continuing cost-reduction
measures.
In May 2002, Casio entered into an outsourcing
relationship with Flextronics International Ltd., the
leading electronics manufacturing services provider.
Our legendary lightweight, compact, and energy-
efficient electronic products developed using cut-
ting-edge technology combined with Flextronics’
world-class procurement and high productivity will
enable us to improve price competitiveness and
fine-tune production, owing to shorter production
lead times, which will allow us to respond more
quickly to demand trends and product cycle changes.
This agreement will also allow us to outsource the
manufacturing of consumer products with costs
that fluctuate greatly as well as help reduce assets
through the equity transfer of two of our factories
and the transfer of assets from one of our factories.
Corporate Governance
In fiscal 2000, Casio introduced a Corporate Officer
System to clarify the Board of Directors’ functions
as well as expedite decision making. More than half
the members of the Board of Corporate Auditors
are outside auditors, which ensures that the inde-
pendence of the Board of Corporate Auditors is
maintained.
Environmental Conservation
In 1993, we established the Casio Environmental
Charter as part of efforts to reduce the Casio
Group’s total environmental impact. We have
acquired ISO 14001 certification for our main
domestic sites and production bases as well as for
our production bases overseas. In February 2002,
we began collecting and recycling communications
equipment and corporate PCs. Since its foundation,
Casio has considered environmental conservation
activities crucial to its operations. We will continue
to make diverse contributions in this area.
The basic policy of Casio’s medium-term manage-
ment plan is to increase shareholder value. To
achieve this objective, we are working toward a
return to profitable growth by actively developing
strategies in all our businesses that maximize prof-
itability ratios through the careful consideration of
capital costs. We plan to continue increasing man-
agement efficiency while we achieve improvements
in our business performance. We believe this will
create new corporate value and maximize value for
our shareholders. Casio is stepping up efforts to
achieve these objectives and continue to meet the
expectations of shareholders.
July 2002
Kazuo Kashio
President and CEO
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