Casio 2003 Annual Report Download

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Annual Report 2003
For the year ended March 31, 2003
Leaner, Faster, Stronger

Table of contents

  • Page 1
    Leaner, Faster, Stronger Annual Report 2003 For the year ended March 31, 2003

  • Page 2
    ..., digital cameras, electronic dictionaries, and TFT LCDs as our strategic businesses. Casio will continue to implement measures to strengthen its management structure and to expand business through the development of inventive products and the promotion of stable longterm profitability. 22 23 35 36...

  • Page 3
    ... strategic businesses: timepieces, digital cameras, and Mobile Network Solutions (MNS). By focusing on these three key target markets, we enhanced product appeal and significantly upgraded value added in a variety of ways. As a result, net sales for fiscal 2003 climbed 15.3% year on year, to ¥440...

  • Page 4
    ... and radio-controlled functions to our smash hit G-SHOCK wristwatch. Constant adjustment to standard time by cesium atomic clocks makes Casio's wristwatches "On Time All the Time" and the ultimate in timepiece technology. Casio has used its long experience in energy-saving and high precision...

  • Page 5
    .... The EXILIM was the first digital camera in the world to use this technology, and Casio supplies a large number of digital camera manufacturers with this new TFT LCD and earned high praise. Casio anticipates increased demand for the TFT LCD from overseas customers for cellular phone production. In...

  • Page 6
    ... to offer consumers products, services, and solutions incorporating the highest levels of value added and quality possible. At the same time, Casio will work to be a company worthy of the admiration of its shareholders and the public through contributing to digitally linking the entire world. July...

  • Page 7
    ...G-Shock line of wristwatches and the first company to market digital cameras commercially, Casio has long maintained a reputation as a revolutionary electronics manufacturer. Casio owes this distinction to its resolute dedication to the development of products to astonish consumers around the world...

  • Page 8
    ... new product development philosophy, the Company has been able to create a wide variety of original products that have caught the attention of consumers worldwide, including the EXILIM digital "wearable card camera," WAVE CEPTOR radio-controlled wristwatches, and a multivolume electronic dictionary...

  • Page 9
    ... the United States, and the WAVE CEPTOR is being sold in those two markets as well. Select WAVE CEPTOR models are also solar powered. Casio eliminated not only the need to adjust the time but also the need to change batteries to offer the public a wristwatch that the world's thinnest digital camera...

  • Page 10
    ...Based on Casio's extensive on-site research into the student market to clearly determine and better satisfy their educational needs, Casio has developed a 23-volume dictionary. This consumer-oriented product includes a comprehensive language reference set to translate English and Japanese vocabulary...

  • Page 11
    ...anywhere digital camera the size of a credit card to ensure that every special moment can be captured, the ultimate wristwatch As a result of the Company's pursuit of adding portability to study references, Casio has developed an electronic dictionary that, at 9.8mm, is the thinnest in the industry...

  • Page 12
    ... on incorporating cutting-edge technologies into our radio-controlled watches, and we will continue with our constant mission to produce timepieces to better serve customer needs. Mobile Network Solutions (MNS) Casio's MNS link hardware, software, and content to offer services that are available...

  • Page 13
    Sales Electronic Calculators Electronic Dictionaries Label Printers Visual-Related Products Digital Cameras Electronic Musical Instruments Digital Watches Analog Watches Clocks PDAs Cellular Phones Pocket Computers Handy Terminals Principal Products 32.3% 15.6% 19.9% Electronic Cash Registers (...

  • Page 14
    ... Green Products 30 activities and by meeting standards set by Eco Mark (Japan), the Energy Star program (United States), and other third-party environmental labeling organizations. We have also stepped up efforts toward the recovery and recycling of toner and drum sets for page printers, personal...

  • Page 15
    Consolidated Six-Year Summary Years ended March 31 Casio Computer Co., Ltd. and Subsidiaries Millions of yen 2003 2002 2001 2000 1999 1998 For the year: Net sales ...Â¥440,567 Cost of sales ...Selling, general and administrative expenses ...Research and development expenses...Operating ...

  • Page 16
    ...advanced technologies, including plans to upgrade its entire line of wristwatches with a radio-controlled function for perfect accuracy and solar-powered functions to make changing batteries a thing of the past. In November 2002, Casio boosted sales with the launch of The G, the new pinnacle product...

  • Page 17
    ..., third-generation cellular phone in April 2002 by updating our technology to adapt to such new services as movie mail in successor models to enhance the pleasure of visual communication. Fiscal 2003 sales for MNS products leaped 68.2%, to ¥87,819 million. In the System Equipment category, despite...

  • Page 18
    ... 40 decreased inventories turnover by 0.5 month, to 2.7 months. However, healthy sales led to an increase of ¥8,779 million in notes and accounts receivable. The increase in other receivables related to materials supplied that resulted from the corporate alliance with Flextronics led other current...

  • Page 19
    ... by segment, Casio invested ¥6,231 million in the Electronics segment and ¥4,849 million in the Electronic Components and Others segment. 0 '99 '00 '01 '02 '03 The remaining capital investment was used throughout the Company and cannot be accounted for by segment. Annual Report 2003 17

  • Page 20
    ... of yen Thousands of U.S. dollars (Note 1) Assets 2003 2002 2003 Current assets: Cash and time deposits (Note 3)...Â¥077,183 Marketable securities (Note 5) ...Notes and accounts receivable-trade: Notes receivable ...Accounts receivable...Allowance for doubtful accounts...Inventories (Notes...

  • Page 21
    ...year (Note 7) ...Employees' severance and retirement benefits (Note 9) ...Retirement benefits for directors and corporate auditors (Note 10) ...Deferred tax... capital...Retained earnings...Net unrealized holding losses on securities ...Foreign currency translation adjustments...Treasury stock, at cost...

  • Page 22
    ...Years ended March 31, 2003 and 2002 Casio Computer Co., Ltd. and Subsidiaries Millions of yen Thousands of U.S. dollars (Note 1) 2003 2002 2003 Net sales (Note 13) ...Â¥440,567 Costs and expenses (Note 13): Cost of sales...Selling, general and administrative expenses...Research and development...

  • Page 23
    ...' Equity Years ended March 31, 2003 and 2002 Casio Computer Co., Ltd. and Subsidiaries Millions of yen Net unrealized holding losses on securities Foreign currency translation adjustments Shares of common stock Common stock Additional paid-in capital Retained earnings Treasury stock, at...

  • Page 24
    ... of bonds...Redemption of bonds...Proceeds from minority shareholders ...Payments for acquisitions of treasury stock for retirement ...Payments for cash dividends...Other ...Net cash provided by (used in) financing activities...Effect of exchange rate changes on cash and cash equivalents...Net...

  • Page 25
    ... but not required for fair presentation, is not presented in the accompanying consolidated financial statements. The translation of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers outside Japan, using the prevailing exchange rate at March 31, 2003, which...

  • Page 26
    ... each fiscal year (less the treasury stock). For diluted net income per share, the number of shares outstanding is adjusted to assume the conversion of convertible bonds. Related interest expense, net of income taxes, is eliminated. Cash dividends per share represent the actual amount applicable to...

  • Page 27
    ...CASH AND CASH EQUIVALENTS AND STATEMENTS OF CASH FLOWS Cash and cash equivalents at March 31, 2003 and 2002 consisted of the following: Millions of yen Thousands of U.S. dollars 2003 2002 2003 Cash and time deposits ...Time deposits over three months ...Marketable securities within three months...

  • Page 28
    ......- Money management funds ...- Free financial funds...- Total ...¥22,340 ¥ 2,370 - 2,050 4,615 5,090 500 ¥14,625 $019,083 167,084 - - - - $186,167 (3) Available-for-sale securities sold in the year ended March 31, 2003 and 2002 were as follows: Millions of yen Thousands of U.S. dollars 2003...

  • Page 29
    ...production and the overseas procurement of materials. The derivative transactions are solely made with highly rated financial institutions; therefore, the Group does not expect any credit risks. The Group utilizes derivatives following the internal regulation for derivatives, which stipulates policy...

  • Page 30
    ...: Millions of yen Thousands of U.S. dollars 2003 2002 2003 Line of credit ...¥35,000 Unused ...35,000 ¥60,000 50,000 $291,667 291,667 8 INCOME TAXES The statutory income tax rate used for calculation of deferred income tax assets and liabilities was 42.1% for the year ended March 31, 2002...

  • Page 31
    ... in the consolidated statements of operations for the years ended March 31, 2003 and 2002 are employees' severance and retirement benefit expenses comprised of the following: Millions of yen Thousands of U.S. dollars 2003 2002 2003 Service cost-benefits earned during the year...Â¥4,561 Interest...

  • Page 32
    ... the Company in accordance with the Commercial Code. At the current conversion prices, 15,849 thousand shares of common stock were issuable at March 31, 2003 upon full conversion of the 1.9% convertible bonds. Diluted net income per share for the year ended March 31, 2002 was not calculated because...

  • Page 33
    ... ...Â¥234,729 Depreciation ...Â¥011,928 Capital expenditures ...Â¥010,592 Thousands of U.S. dollars Electronic components and others Elimination or unallocated amount Electronics Total Consolidated For 2003 Net sales: Outside customers ...$2,917,875 Inside Group ...15,225 Total ...Costs and...

  • Page 34
    ... Major products in each business segment: (1) Electronics: Electronic calculators, Electronic dictionaries, Label printers, Digital cameras, Electronic musical instruments, Digital watches, Analog watches, Clocks, PDAs, Cellular phones, Electronic cash registers, Office computers, Page printers, etc...

  • Page 35
    .... 2. The main countries and the areas which belong to each segment except for Japan were as follows: (1) North America...U.S.A., Canada, Mexico (2) Europe ...U.K., Germany, France (3) Asia...Taiwan, Hong Kong, South Korea, Malaysia, Singapore, China, India, Indonesia, Thailand 3. As explained in...

  • Page 36
    ... would be adjusted, if the Company issues new shares at a price below the market price. 17 18 19 GAIN ON SALES OF INVESTMENT SECURITIES IN CONSOLIDATED SUBSIDIARIES In August 2001, Casio Micronics Co., Ltd., a consolidated subsidiary, completed its initial public offering in Japan. In conjunction...

  • Page 37
    ... reader. We have recomputed the translation and, in our opinion, the consolidated financial statements expressed in Japanese yen have been translated into United States dollars on the basis set forth in Note 1 to the consolidated financial statements. Tokyo, Japan June 27, 2003 Annual Report 2003...

  • Page 38
    ...Casio Electronic Manufacturing Co., Ltd. Production of page printers ࡯ Kochi Casio Co., Ltd. Production of LCDs ࡯ Kofu Casio Co., Ltd. Production of electronic calculators, PDAs, and LCDs ࡯ Casio Techno Co., Ltd. Customer service for Casio products ࡯ Casio Information Systems Co., Ltd. Sales...

  • Page 39
    ... Middle East•Africa Section/ Latin America Section Tel: (03) 5334-4320 ࡯ Administrative Management Section/Subsidiary Control Section Tel: (03) 5334-4321 ࡯ System Solution Products Headquarters Overseas Marketing & Sales Department Tel: (03) 5334-4770/4771 ࡯ North America and Europe Tel: (03...

  • Page 40
    Investor Information Stock Exchange Listings Tokyo, Osaka, Amsterdam, and Frankfurt Share Price Range Yen Year Month High Low Transfer Agent The Sumitomo Trust and Banking Corporation Stock Transfer Agency Dept. 4-4, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan 2002 Number of Shares ...

  • Page 41

  • Page 42
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