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Business Performance for Fiscal 2006
During the term under review, ended March 31,
2006 (hereinafter fi scal 2006), the Casio Group
strongly promoted and developed its strategic
businesses, including timepieces, digital cameras,
electronic dictionaries, cellular phones, and TFT LCDs,
in pursuit of its business targets. At the same time,
the Company has been focusing on realizing greater
management effi ciency, including raising profi t ratios
and improving capital effi ciency.
As a result, net sales (on a consolidated basis)
grew by 3.8% year-on-year to ¥580.3 billion in
the reporting period, primarily driven by growth in
strategic businesses. Thus, sales rose for a fourth
straight year.
By business segment, sales in the Electronics
Segment were up 5.7% year-on-year at ¥473.4
billion. In the digital camera business, sales of our
popular, stylish digital camera Exilim once again
recorded favorable results, thanks to growth in
sales in overseas markets. Timepieces, led by Casio’s
Oceanus brand, a high-end full-metal solar-powered
radio-controlled watch, saw a year-on-year rise
in sales. This is largely the result of our strategy of
targeting market expansion for our solar-powered
radio-controlled watches. In cellular phones,
our new products all posted strong sales. These
products include our water-proof, shock-resistant
“G’zOne TYPE-R” model, featuring a megapixel
camera. The W41CA, a slim folding model, is a mere
22mm thick when folded, and is compatible with
various WIN services provided by “au.”
In contrast, sales in the Electronic Components
and Others Segment declined 3.8% to ¥106.8 billion.
Casio Micronics Co., Ltd. saw a rise in sales as a result
of a strong performance by its COF (chip-on-fi lm)
operations but TFT operations reported a decline in
revenue, attributable to a decrease in product prices
on a unit basis.
Operating income rose 10.4% to ¥43.1 billion,
showing a year-on-year rise for the fourth consecutive
year. This is largely attributable to efforts to increase
the profi t margins of our products by developing
products with more attractive features especially in
our strategic businesses, as well as to improve our
operational effi ciency. Net income increased 10.3%
to ¥23.7 billion, thanks to steps to establish a strong
fi nancial structure by reducing fi nancial expenses. The
Company achieved record-high sales and net income
for the third consecutive year.
We increased our annual dividend by ¥3 per share
from the ¥17 per share for the previous year to ¥20 per
share for the year under review, taking into account
3
Annual Report 2006