Casio 2005 Annual Report Download - page 2

Prole
Consolidated฀Financial฀Highlights฀ 1
Message฀from฀the฀President฀ 2
Five฀Strategic฀Businesses฀ 5
CASIO฀at฀a฀Glance฀ 10
Research฀&฀Development฀ 12
Corporate฀Social฀Responsibility฀(CSR)฀Activities฀ 14
Management’s฀Discussion฀and฀Analysis฀ 16
Consolidated฀Six-Year฀Summary฀ 19
Consolidated฀Balance฀Sheets฀ 20
Consolidated฀Statements฀of฀Income฀ 22
Consolidated฀Statements฀of฀Shareholders’฀Equity฀ 23
Consolidated฀Statements฀of฀Cash฀Flows฀ 24
Notes฀to฀Consolidated฀Financial฀Statements฀ 25
Independent฀Auditors’฀Report฀ 36
Principal฀Subsidiaries฀ 37
Directors฀and฀Corporate฀Auditors฀ 37
Corporate฀Data฀ 37
Investor฀Information฀ 38
Contents
Since฀its฀establishment฀in฀1957,฀Casio฀Computer฀Co.,฀Ltd.,฀made฀its฀mission฀to฀pursue฀
“Creativity฀and฀Contribution.”฀Casio฀aims฀to฀spur฀corporate฀growth,฀increase฀corporate฀
value,฀and฀continue฀to฀be฀a฀highly฀visible฀and฀attractive฀Company฀to฀shareholders฀and฀
customers฀by฀using฀ingenious฀concepts฀and฀state-of-the-art฀technologies฀to฀create฀
products฀and฀services฀that฀will฀make฀the฀lives฀of฀people฀throughout฀the฀world฀more฀
enjoyable฀and฀comfortable.
In฀the฀term฀ended฀March฀31,฀2005,฀Casio฀strongly฀promoted฀and฀developed฀its฀strategic฀
businesses,฀which฀are฀timepieces,฀digital฀cameras,฀electronic฀dictionaries,฀cellular฀phones,฀
and฀TFT฀LCDs,฀in฀pursuit฀of฀management฀targets.฀At฀the฀same฀time,฀the฀Company฀focused฀
on฀realizing฀greater฀management฀efciency,฀including฀raising฀operating฀income฀margins฀
and฀improving฀capital฀efciency.฀As฀a฀results฀of฀these฀efforts,฀the฀Company฀achieved฀
record-high฀sales฀and฀income.
We฀will฀make฀maximum฀use฀of฀our฀expertise฀in฀our฀strategic฀businesses.฀Casio฀will฀expand฀
business฀through฀the฀development฀of฀inventive฀products฀and฀the฀promotion฀of฀stable฀
long-term฀protability.
Forward-Looking฀Statements
Sections฀appearing฀in฀this฀annual฀report฀dealing฀with฀plans,฀forecasts,฀and฀strategies฀contain฀statements฀that฀are฀
not฀based฀on฀historical฀facts,฀but฀which฀reect฀the฀judgment฀of฀management฀based฀on฀information฀available฀to฀it฀
at฀the฀time฀of฀writing.฀Consequently,฀actual฀performance฀may฀differ฀materially฀from฀the฀Company’s฀forecasts.฀
฀ Key฀factors฀affecting฀actual฀results฀include,฀but฀are฀not฀limited฀to,฀consumer฀trends฀in฀world฀markets,฀sig-
nicant฀changes฀in฀product฀prices฀over฀a฀ short฀period฀of฀time,฀the฀risk฀that฀new,฀popular฀products฀cannot฀ be฀
launched฀in฀succession฀ahead฀of฀competitors,฀the฀risk฀of฀product฀obsolescence฀resulting฀from฀rapid฀changes฀in฀
technology,฀or฀dramatic฀changes฀in฀market฀needs,฀changes฀by฀large-volume฀customers฀in฀the฀mobile฀communica-
tions฀business฀(which฀accounts฀for฀a฀large฀percentage฀of฀our฀sales)฀in฀respect฀of฀strategies,฀product฀specications,฀
schedules,฀and฀so฀on,฀up฀to฀and฀including฀contract฀cancellations,฀and฀the฀possibility฀that฀we฀may฀be฀unable฀to฀
ensure฀ the฀expected฀level฀of฀product฀quality฀with฀respect฀to฀ products฀ whose฀manufacture฀and/or฀assembly฀is฀
outsourced฀to฀suppliers฀outside฀the฀Casio฀Group,฀or฀the฀possibility฀that฀one฀or฀more฀of฀the฀outsourced฀service฀
suppliers฀in฀question฀is฀guilty฀of฀a฀violation฀of฀a฀law฀or฀laws฀relating฀to฀the฀business฀at฀hand,฀including฀possible฀
infringement฀of฀the฀intellectual฀property฀rights฀of฀a฀third฀party.฀
฀ Other฀risk฀factors฀ include฀unforeseen฀political฀and฀economic฀changes฀and฀substantial฀changes฀in฀laws฀and฀
regulations฀overseas;฀the฀risk฀of฀losses฀resulting฀from฀lawsuits฀brought฀against฀us฀for฀violation฀of฀intellectual฀prop -
erty฀rights฀by฀other฀parties฀at฀the฀time฀of฀our฀release฀to฀market฀of฀new฀products฀and฀technologies;฀claims฀brought฀
against฀ the฀ Company฀regarding฀manufacturers’฀liability;฀damages฀resulting฀from฀the฀leakage฀ of฀information;฀
changes฀in฀management฀policies฀and฀the฀business฀environment฀of฀the฀companies฀with฀which฀Casio฀has฀formed฀
tie-ups฀or฀joint฀ventures,฀or฀in฀which฀Casio฀has฀made฀strategic฀investments;฀risks฀associated฀with฀the฀cyclical฀na-
ture฀of฀the฀IT฀sector,฀as฀well฀as฀an฀inability฀to฀procure฀raw฀materials,฀equipment฀and฀plants,฀or฀electricity฀and฀other฀
utilities฀at฀an฀appropriate฀price;฀the฀risk฀of฀declines฀in฀the฀prices฀of฀marketable฀securities฀held฀by฀Group฀members;฀
risks฀associated฀with฀revisions฀in฀laws฀and฀regulations฀governing฀pension฀ accounting;฀ changes฀in฀the฀pension฀
system฀and฀dramatic฀changes฀in฀the฀fund฀operation฀environment;฀risks฀associated฀with฀exchange฀rate฀and฀inter-
est฀rate฀uctuations;฀res,฀earthquakes฀and฀other฀kinds฀of฀natural฀disasters,฀or฀the฀occurrence฀of฀accidents฀in฀the฀
workplace;฀and฀the฀impact฀of฀wars,฀acts฀of฀terrorism,฀or฀epidemics.
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ANNUAL฀REPORT฀2005