Casio 2004 Annual Report Download - page 21

19
ANNUAL REPORT 2004
the worldwide decline in IT-related demand.
Sales in the Electronic Components and Others segment increased 30.4%, to ¥117,926
million, and accounted for 22.5% of net sales.
Sales in the Electronic Components Category climbed 43.5%, to ¥86,903 million. 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 over-
seas markets. With regard to the film device business of Casio Micronics Co., Ltd., sales of
COF (chip-on-film), a leading product benefiting by the recovery in demand for PCs, exceeded
initial targets.
Sales in the Others Category increased 3.9%, to ¥31,023 million. Substantial growth in
Yamagata Casio Co., Ltd.’s components business compensated for the effects of the consoli-
dation of independent businesses at Aichi Casio Co., Ltd., resulting from the Company’s busi-
ness alliance with Flextronics to consign certain manufacturing operations.
Results by Region
Sales in Japan grew 11.4%, to ¥299,224 million, and comprised 57.2% of net sales. The
increase in sales is attributable to strong sales of our strategic products — digital cameras,
electronic dictionaries and cellular phones. Sales in North America rose 3.7%, to ¥51,230 mil-
lion, which accounted for 9.8% of net sales. Sales in Europe rose 21.3%, to ¥68,132 million,
principally as a result of growing sales of digital cameras, and accounted for 13.0% of net
sales. Sales in Asia and other regions, excluding Japan, climbed 58.1%, to ¥104,942 million,
and accounted for 20.0% of net sales on the back of a dramatic increase in electronic com-
ponent sales.
RESULTS OF OPERATIONS
For fiscal 2004, operating income after consideration of elimination or unallocated amounts
came to ¥27,491 million up 53.5% year-on-year. The Electronics segment posted an operat-
ing income of ¥25,226 million, up 41.6% and the Electronic Components and Others seg-
ment posted operating income of ¥7,066 million, up 46.8%. This rise in operating income is
the result of Casio’s strategy of enhancing value-added by strengthening product appeal, as
well as Companywide efforts to improve management efficiency and bolster the Group’s
financial base through business reform.
Net financial expenses decreased from ¥2,211 million to ¥1,562 million due primarily to
repayment of interest-bearing debt. Other expenses came to ¥3,393 million, compared with
¥6,089 million for the previous term. This is due mainly to the reporting of ¥2,753 million in
gain on the release from the substitutional portion of the government’s Welfare Pension
Insurance Scheme.
Income before income taxes and minority interests grew 134.4%, to ¥22,536 million. Net
income for the period was a record ¥14,176 million, up 151.0% from fiscal 2003.
Net income per share came to ¥51.99.
Shareholders’ Equity Ratio
0
10
20
30
40
0403020100
(%)
Tot al Assets and
Shareholders’ Equity
0
100
200
300
400
500
600
0403020100
(Billions of yen)
Capital Investment
0
5
10
15
20
25
30
35
40
0403020100
(Billions of yen)