Casio 2004 Annual Report Download

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Growth through innovation
ANNUAL REPORT 2004
FOR THE YEAR ENDED MARCH 31, 2004
Since its establishment in 1957, Casio has developed a constant stream of
innovative products made possible by the combination of ingenious concepts and
state-of-the-art technologies. Our priorities are to achieve growth, increase corporate
value, and provide products that enhance the lives of people worldwide.

Table of contents

  • Page 1
    ... Casio has developed a constant stream of innovative products made possible by the combination of ingenious concepts and state-of-the-art technologies. Our priorities are to achieve growth, increase corporate value, and provide products that enhance the lives of people worldwide. ANNUAL REPORT 2004...

  • Page 2
    ... The Company is aggressively promoting sales of its electronics products, including the digital camera EX-Z3, the No.1 model in Japan in 2003, solar-powered radio-controlled watches such as The G, electronic dictionaries and cellular phones. Page 7 Timepieces 13.4% Mobile Network Solutions (MNS...

  • Page 3
    ... radio-controlled watches with the aim of making inroads into the total watch market Page 14 Cellular Phones • Developing joint venture's potential with Hitachi, Ltd. Page 15 TFT LCDs • Leveraging our strengths in mobile devices such as cellular phones and digital cameras Page 15 Corporate...

  • Page 4
    ... 2003, Casio Computer Co., Ltd. and Subsidiaries Millions of yen Thousands of U.S. dollars* 2004 2003 2004 For the year: Net sales Operating income Net income Capital investment Depreciation Research and development expenses At year-end: Shareholders' equity Total assets Amounts per share of...

  • Page 5
    ...FOR THE TERM UNDER REVIEW Under this business environment, the Casio Group forged strongly ahead with the development of strategic businesses, including timepieces, digital cameras, electronic dictionaries, cellular phones, and TFT LCDs, setting the stage for the achievement of sales targets. At the...

  • Page 6
    ... with multi-band, and by expanding our lineup of products targeted at women in addition to ultra-thin models. 4 CASIO COMPUTER CO., LTD. • In the area of cellular phones, in April 2004, we established with Hitachi, Ltd. a joint development company known as Casio Hitachi Mobile Communications Co...

  • Page 7
    ...missed. The EXILIM camera is a perfect companion for tourists and those who enjoy outdoor activities, as well as anyone who is looking for an ultra-compact, high-performance digital camera. The latest EX-Z40 model shown here features a battery life 2.5 times that of the EX-Z4. ANNUAL REPORT 2004 5

  • Page 8
    ... by digital cameras, electronic dictionaries, solar-powered radio-controlled watches, and cellular phones with one megapixel and two megapixel cameras. Sales for the Electronic Components and Others segment surged 30.4%, thanks to a large expansion in sales of TFT LCDs and COF. 2 CASIO at...

  • Page 9
    ... Services Japan Ltd. This is based on the resluts of a survey conducted by GfK through April 2003 to March 2004. Casio's new PRIVIA digital piano offers a sound quality and natural keyboard touch comparable to conventional pianos, achieving exceptional quality at a highly competitive price. ANNUAL...

  • Page 10
    ...in new markets. In the Timepieces Category, sales increased62.5 2.4% 68.5 from the previous term, to ¥70 billion. 70.1 In addition to our world-famous brands "G-Shock" and "Baby-G", we have developed products that incorporate cutting-edge watch technologies - solar-powered radio-controlled watches...

  • Page 11
    ...conponent supply and technological corporation. Through the cooperative efforts of both companies, we launched new products in the South Korean market, and achieved strong sales. In November of the same year, we announced the establishment of a joint venture with Hitachi, Ltd. for the development of...

  • Page 12
    ... under review, Casio added a new dimension of portability to the data projector market by bringing to market two types of high-resolution, mobile projectors, along with a new 4-megapixel CCD multi-function projector camera. These new products, released into the business and education markets, sell...

  • Page 13
    ... watch? Try the Casio Wave Ceptor series! No need to calibrate your watch every time. Also, no need to worry about replacing your battery. And you won't have to worry about breaking your "G-Series" watch - it's almost unbreakable. The Wave Ceptor series are solar-powered radio-controlled watches...

  • Page 14
    ... areas. We plan to further expand our total business scale by concentrating management resources in these areas: • Digital Cameras • Electronic Dictionaries • Solar-powered radio-controlled watches • Cellular phones • TFT LCDs Please see pages 13-15 for more details regarding plans for...

  • Page 15
    ... Through this kind of concept-inspired product development, we intend to continue realizing the sort of digital camera innovations of which only Casio is capable. Sales (Millions of units) 1 03 3 2 1 0 0.70 0.35 0.35 02 1.40 0.65 0.75 03 2.80 1.70 Overseas 1.10 04 Japan ANNUAL REPORT 2004 13

  • Page 16
    ... these products. The number of overseas students exceeds the current level of the same target customers in Japan by 26 times, and by 14 times in terms of the number of business professionals. During the reporting period, Casio commenced sales of electronic dictionaries in South Korea, Germany, Spain...

  • Page 17
    ... Casio 51%, Hitachi 49% Development, design, procurement, product, quality assurance, sales and services for cellular phones TFT LCDs Recently, the size of the market for small-sized TFT LCDs panels has grown proportionately to the global expansion seen in the cellular phone and digital camera...

  • Page 18
    ... guide for the daily work of all Casio employees. These two texts have been made publicly available on Casio's website. we have scheduled 27 tours between April and December 2004. Other social contributions include donations for the installation of a multipurpose air dome in the public square...

  • Page 19
    ...learn languages will find it highly useful. This is the ideal electronic dictionary for students. No other electronic dictionary can beat the usability of the EX-Word. An ideal model for students of English, incorporating 42 different dictionaries English-German Dictionary model ANNUAL REPORT 2004...

  • Page 20
    ... the term. As for electronic dictionaries, Casio boasts the most extensive product lineup in the industry, having developed models loaded with contents specific to the needs of each target user segment, such as students or business professionals. In the Timepieces Category, sales grew 2.4% to ¥70...

  • Page 21
    .... Our TFT LCD business has gained the top share of the world-wide market for screens used in digital cameras. In addition, we substantially increased TFT LCD sales for cellular phone use in overseas markets. With regard to the film device business of Casio Micronics Co., Ltd., sales of COF (chip...

  • Page 22
    ...in inventories and decreased inventories turnover by 0.7 month, to 2.0 months. However, due to a purchase of short-term Japanese government bonds, investment in marketable securities exceeded the previous-year level by ¥18,451 million. An increase in materials supplied for consignment production in...

  • Page 23
    ... For the year: Net sales...Cost of sales ...Selling, general and administrative expenses ...Research and development expenses ...Operating income (loss) ...Net income (loss) ...Capital investment...Depreciation ...At year-end: Current assets ...Current liabilities ...Working capital ...Shareholders...

  • Page 24
    ...receivable: Notes receivable-trade ...Accounts receivable-trade...Accounts receivable-other ...Allowance for doubtful accounts ...Inventories (Note 4)...Deferred tax assets (Note 8) ...Other current assets ...Total current assets ... Millions of Yen 2004 2003 Thousands of U.S. Dollars (Note 1) 2004...

  • Page 25
    ...-in capital ...Retained earnings ...Net unrealized holding gains (losses) on securities ...Foreign currency translation adjustments...Treasury stock, at cost...Total shareholders' equity ...Â¥ Millions of Yen 2004 2003 Thousands of U.S. Dollars (Note 1) 2004 906 12,792 29,536 72,870 35,756 12,819...

  • Page 26
    ... 31, 2004 and 2003 Casio Computer Co., Ltd. and Subsidiaries Millions of Yen 2004 2003 Thousands of U.S. Dollars (Note 1) 2004 Net sales (Note 13)...Costs and expenses (Note 13): Cost of sales ...Selling, general and administrative expenses ...Research and development expenses ...Operating income...

  • Page 27
    ...paid (Â¥12.50 per share) ...Bonuses to directors and corporate auditors...Surplus from sale of treasury stock ...Increase in net unrealized holding gains on securities...Increase in foreign currency translation adjustments ...Increase in treasury stock-net...Balance at March 31, 2004 ... 271,007,868...

  • Page 28
    ... Cash Flows Years ended March 31, 2004 and 2003 Casio Computer Co., Ltd. and Subsidiaries Millions of Yen 2004 2003 Thousands of U.S. Dollars (Note 1) 2004 Cash flows from operating activities: Income before income taxes and minority interests ...Depreciation (including software) ...Amortization...

  • Page 29
    ... converted into U.S. dollars at this or any other rate of exchange. 2. SIGNIFICANT ACCOUNTING POLICIES Consolidation The accompanying consolidated financial statements include the accounts of the Company and significant subsidiaries (together with the Company, the "Group") which the Company controls...

  • Page 30
    ... as operating leases under accounting principles generally accepted in Japan. Income taxes Taxes on income consist of corporation, inhabitants and enterprise taxes. Deferred income taxes are provided for the items relating to intercompany profit elimination in connection with the calculation of...

  • Page 31
    ... property, plant and equipment and investments and other assets 4. INVENTORIES Inventories at March 31, 2004 and 2003 consisted of the following: Millions of Yen 2004 2003 Thousands of U.S. Dollars 2004 Finished products ...Work in process...Materials and supplies ...Total...5. SECURITIES ¥36...

  • Page 32
    ...302 $(10,811) (2) The following tables summarize book values of securities with no available fair values at March 31, 2004 and 2003. (a) Book value of held-to-maturity debt securities Millions of Yen 2004 2003 Thousands of U.S. Dollars 2004 Certificates of deposit...(b) Book value of available-for...

  • Page 33
    .... The Group utilizes derivatives following the internal regulation for derivatives, which stipulates policy, objective, scope, organization, procedures and financial institutions to deal with, and has a reporting system for derivative transactions reflecting proper internal control functions. Fair...

  • Page 34
    ... Millions of Yen 2004 2003 Thousands of U.S. Dollars 2004 Deferred tax assets: Employees' severance and retirement benefits ...Net operating loss carryforwards ...Unrealized holding losses on securities...Accrued expenses (bonuses to employees)...Inventories...Property, plant and equipment ...Other...

  • Page 35
    ...48,745 The discount rate and the rate of expected return on plan assets used by the Company are 2.5% and 4.5% in 2004 and 2.8% and 4.5% in 2003, respectively. The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year using the...

  • Page 36
    ... $120,783 (2) Operating leases The amount of outstanding future lease payments due at March 31, 2004 was as follows: Millions of Yen Thousands of U.S. Dollars Future lease payments: Due within one year ...Due over one year ...Total ... ¥ 57 89 ¥146 $ 538 839 $1,377 34 CASIO COMPUTER CO., LTD...

  • Page 37
    ... products in each business segment: (1) Electronics: Electronic calculators, Electronic dictionaries, Label printers, Digital cameras, Electronic musical instruments, Digital watches, Analog watches, Clocks, Cellular phones, Electronic cash registers, Office computers, Page printers, Data projectors...

  • Page 38
    ... 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 Note 10, effective April 1, 2002, the Company provided accrued...

  • Page 39
    ... the Company issues new shares at a price below the market price. By special resolution at the 48th annual shareholders' meeting held on June 29, 2004, the Company introduced a stock option plan in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights...

  • Page 40
    Independent Auditors' Report To the Shareholders and Board of Directors of CASIO COMPUTER CO., LTD.: We have audited the accompanying consolidated balance sheets of CASIO COMPUTER CO., LTD. (a Japanese corporation) and subsidiaries as of March 31, 2004 and 2003, and the related consolidated ...

  • Page 41
    ... of China Sales of Casio products North America •Casio, Inc. U.S.A. Sales of Casio products •Casio Canada Ltd. Canada Sales of Casio products •Casio Holdings, Inc. U.S.A. Holding company Directors and Corporate Auditors (As of June 29, 2004) *Corporate officers Chairman and Representative...

  • Page 42
    ... Stock Transfer Agency Dept. 4-4, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan Number of Shares Authorized: 471,693,000 shares Issued: 270,442,868 shares Number of Shareholders 31,115 Principal Shareholders Shareholdings (thousands) Outstanding voting share Share Price Range Yen Year Month...

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    CASIO COMPUTER CO., LTD. 6-2, Hon-machi 1-chome, Shibuya-ku, Tokyo 151-8543, Japan http://world.casio.com/ Printed in Japan on recycled paper