Casio 2006 Annual Report Download - page 6

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Message from the President
Components (TFT LCDs). With these two types of
businesses at the core, Casio is pursuing management
that secures stable growth and profi tability by
developing strategies that suit the characteristics of
each type of business. Going forward, the Company
aims to secure stable profi ts in Stable Businesses
while increasing revenues and operating income in
Expansive Businesses. Casio is focused on achieving a
10% operating income margin overall.
As means of improving our earnings capabilities,
the Production and Purchasing Headquarters was
merged with the Product Development Headquarters
in June 2005. We aim to lower the cost of sales ratio
by reducing production costs from the design stage.
For this purpose, we are implementing the following
four measures.
1. Achieve a stable selling price by increasing product
appeal through the incorporation of unique features
2. Realize an appropriate level of inventory by more
tightly controlling every stage of the production
process
3.
Minimize materials costs by standardizing components
and procurement
4. Curb production costs by increasing the capacity
utilization rate at our plants
our favorable business performance. This resulted in
an increase in the dividend for three years in a row.
Medium and Long-Term Management
Strategy
In order to raise Casio’s corporate value through
continual expansion of business operations, it
is necessary to strengthen our cost effi ciency
worldwide, create solid revenue bases capable of
generating a high level of profi ts, and bolster our
fi nancial position. To realize these goals, the Company
has implemented the following measures.
(1) Improving Earning Capacity
Casio has positioned businesses that have maintained
the top market share and are expected to obtain
stable cash fl ow without requiring signifi cant
additional investment as Stable Businesses. These
businesses include Timepieces, Consumer Products
(excluding digital cameras), and System Equipment.
We have positioned businesses that are expected to
experience signifi cant global market growth in the
future, while also facing intensifying competition as
a large number of companies enter the market, as
Expansive Businesses. These include the digital camera
and cellular phone businesses, as well as Electronic
4CASIO COMPUTER CO., LTD.