Casio 2006 Annual Report Download - page 21

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In the System Equipment Category, sales declined 1.7% to ¥48,628 million. Although we offer an advanced
business model in the solution business, which provides customers with the optimal combination of hardware and
applications, sales were affected by a general downward trend in prices for IT-related products.
Sales in the Electronic Components and Others Segment declined 3.8% to ¥106,889 million, accounting for
18.4% of net sales. Specifically, sales in the Electric Components Category fell 5.4% to ¥73,976 million. This was the
mixed result of increased revenue from Casio Micronics Co., Ltd.’s chip-on-film (COF) operations and a decrease in
revenue from our TFT LCD business due to a decline in the unit price. Sales in the Others Category decreased 0.1%
to ¥32,913 million.
Results by Region
Sales in Japan grew 2.5% to ¥344,730 million, comprising 59.4% of net sales. The increase in sales is attributable
to strong sales of our strategic businesses. Sales in North America rose 26.1% to ¥58,868 million, which accounted
for 10.2% of net sales. Sales in Europe rose 5.4% to ¥78,822 million, accounting for 13.6% of net sales. Sales in
Asia and other regions, excluding Japan, declined 3.2% to ¥97,889 million, accounting for 16.8% of net sales.
Consequently, overseas sales increased 5.8% to ¥235,579 million.
Results of Operations
For fiscal 2006, operating income after consideration of elimination or unallocated amounts came to ¥43,114
million, up 10.4% year-on-year. The Electronics Segment posted an operating income of ¥41,759 million, up 15.5%,
and the Electronic Components and Others Segment posted an operating income of ¥7,185 million, down 17.0%.
This rise in operating income is the result of Casio’s strategy of enhancing value-added by strengthening product
appeal, as well as company-wide efforts to improve management efficiency and bolster the Group’s financial base
through business reform. The operating income margin rose 0.4 percentage point to 7.4%.
Net financial income amounted to ¥558 million, compared with net financial expenses of ¥447 million in the
previous reporting period. Net other expenses came to ¥4,001 million, down from ¥5,500 million in the previous
term. This is due mainly to the non-repetition of the posting of loss on impairment of fixed assets recorded in the
previous term.
Net income grew 10.3% to ¥23,745 million, setting a record for the third straight term. Net income per share
came to ¥88.57, up ¥8.3 from fiscal 2005.
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Capital Investment
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Annual Report 2006