Casio 2007 Annual Report Download

Download and view the complete annual report

Please find the complete 2007 Casio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 46

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46

Annual Report 2007
For the year ended March 31, 2007
Development made by innovations drives further breakthroughs
50

Table of contents

  • Page 1
    Annual Report 2007 For the year ended March 31, 2007 50 Development made by innovations drives further breakthroughs

  • Page 2
    ... - the world's first compact electric calculator. This achievement led to the establishment of Casio Computer Co., Ltd., which celebrated the 50th anniversary of its founding in June 2007. From the start, the management of Casio has been guided by the principles encapsulated in the Company's creed...

  • Page 3
    ... Highlights Years ended March 31, 2007 and 2006 Casio Computer Co., Ltd. and Subsidiaries Millions of Yen 2007 2006 Thousands of U.S. Dollars* 2007 For the year: Net sales ...Operating income ...Net income ...Capital investment ...Depreciation ...Research and development expenses ...At year-end...

  • Page 4
    ...to express our deep appreciation for the outstanding support we have received from our shareholders and investors over the years. I am delighted to report on the Company's business performance for the term ended March 31, 2007 as well as on its strategies for the future. 2 CASIO COMPUTER CO., LTD.

  • Page 5
    ... year on year, to ¥93.5 billion, as Casio Micronics Co., Ltd. reported falling revenues, and unit prices of TFT-LCDs declined. Looking at profitability, as a result of rising sales of digital cameras and cell phones, action taken to add value to radio-controlled watches and electronic dictionaries...

  • Page 6
    ... this target, the Company will focus its management policies on securing stable growth with consistent profitability. We have already made stable, high double-digit profit margins possible in the businesses of digital cameras, solar-powered radio-controlled watches and electronic dictionaries. To...

  • Page 7
    ... employees and directors is fully aware of their role in complying with laws and regulations, upholding community values and contributing to society. At the same time, we are taking steps to improve the levels of corporate governance and compliance. Kazuo Kashio President & CEO Annual Report 2007...

  • Page 8
    ... Calculators • Electronic Dictionaries • Label Printers • Digital Cameras • Electronic Musical Instruments 84.9% Sales and Operating Income (Billions of yen) 600 60 50 40 30 20 10 0 05 06 07 Sales (left scale) Operating income (right scale) Timepieces Principal Products Mobile Network...

  • Page 9
    ... G-Shock and Baby-G, as well as Oceanus, a series of fullmetal solar-powered radio-controlled watches. By incorporating cutting-edge technologies, we have differentiated our product from conventional watches by making it a wearable mobile terminal. In addition to cell phones, we offer handy...

  • Page 10
    ... positions digital cameras, timepieces, electronic dictionaries, and cell phones as its strategic businesses. All these products leverage Casio's core technological strengths of compactness and thinness, lightweight construction, and energy-saving features. Our timepieces and electronic dictionaries...

  • Page 11
    ... the current term, in addition to the existing operating areas of Japan, Europe and North America, the Company plans to introduce its products to the Chinese market, which is building radio transmitters. Areas in which our radio-controlled timepieces can be used are steadily expanding. Compared with...

  • Page 12
    ... become an increasingly important factor in customer acquisition. In this market, Casio, a supplier for KDDI Corporation's au brand cell phones, achieved one of the leading annual sales shares among all au suppliers in the reporting term. Our analysis suggests that the high level of user support was...

  • Page 13
    ... 2007, Casio's digital cameras EXILIM EX-Z1000 and EX-S770 have received the iF product design award 2007, a prestigious international award for industrial product designs, together with our data projector XJ-S35. In 2007, applications for 2,293 products were made from 35 countries around the world...

  • Page 14
    ... shares in the Japanese market for electronic dictionaries by always being the first to develop and introduce new products that meet users' demands. In the reporting term, the Company released 18 new models together for the spring shopping season, when demand for these types of goods peaks in Japan...

  • Page 15
    ... in Mitaka City, Tokyo, with Shigeru Kashio as President and CEO. Commercial production of the world's first small, fully electric calculator starts. Casio Computer Co., Ltd. founded. Export of electronic desktop calculators to overseas markets begins. Sales company Casio Europe GmbH established in...

  • Page 16
    ... • Electronic component technology • Telecommunications and digital broadcasting technology • Information network/system technology • Software and IP (algorithm) technology • Environmental technology W-CSP - semiconductor packages best suited for high-frequency wireless connection "Radio...

  • Page 17
    ... Committee Internal Audit Department Chief Risk Management Officer Risk Management Committee Risk Management Committee Secretariat Main risk management departments Risk management departments Staff function departments, Subcommittees Casio Computer Co., Ltd., Group companies Annual Report 2007 15

  • Page 18
    ..., ventilators and blinds automatically. In addition to using the new facilities, the Center has switched from complete automatic control to partial manual operation of its air-conditioning system to further save energy. This activity has been given high marks by the Tokyo Metropolitan Government as...

  • Page 19
    ... of Education, Culture, Sports, Science and Technology. The Company accepted the school's request to "learn about logic circuits in electronic calculators and look at R&D activities on site." During the visit, the Company showed the students the process of developing new products and gave them...

  • Page 20
    ... rose 9.7% to ¥77,948 million. This was mainly the result of aggressive marketing of solar-powered radio-controlled watches, led by the full-metal high-end Oceanus brand, in Japan, Europe and North America. Net Sales Operating Income and Operating Income Margin (Billions of yen) (%) Net Income...

  • Page 21
    ...of raising value-added by strengthening the appeal of its digital cameras, cell phones, radiocontrolled watches, and electronic dictionaries, as well as company-wide efforts to improve productivity by improving the efficiency of development and operational processes. The operating income margin rose...

  • Page 22
    ... 2007 increased 4.7% year-on-year to ¥525,483 million. Current assets rose by ¥10,957 million to ¥330,136 million due mainly to an increase in trade receivables. Noncurrent assets rose ¥12,566 million to ¥195,347 million mainly due to increases in buildings and structures and software. Total...

  • Page 23
    ... Risks The management performance, financial position and share price of Casio are subject to the following risks. We have prepared a list of items that might have an impact on the forecasts included in this report as of the consolidated reporting period ended March 2007. 1) Japan's economy and...

  • Page 24
    ... product liability and product safety will not be brought against Casio Group members in the future. 10) Risks related to information management The Casio Group maintains personal information and confidential business information relating to the promotion and development of its business operations...

  • Page 25
    Consolidated Six-Year Summary Years ended March 31 Casio Computer Co., Ltd. and Subsidiaries 2007 2006 Millions of Yen 2005 2004 2003 2002 For the year: Net sales...Cost of sales ...Selling, general and administrative expenses ...Research and development expenses ...Operating income (loss) ......

  • Page 26
    ... Sheets Years ended March 31, 2007 and 2006 Casio Computer Co., Ltd. and Subsidiaries Assets Current assets: Cash and time deposits (Note 3) ...Marketable securities (Note 5) ...Notes and accounts receivable: Trade ...Other...Allowance for doubtful accounts ...Inventories (Note 4)...Deferred tax...

  • Page 27
    ... adjustments Net unrealized holding gains on securities ...Deferred losses on hedges ...Foreign currency translation adjustments...Total valuation and translation adjustments ...Minority interests ...Total net assets ...Â¥ Millions of Yen 2007 2006 Thousands of U.S. Dollars (Note 1) 2007 4,196 32...

  • Page 28
    ... 31, 2007 and 2006 Casio Computer Co., Ltd. and Subsidiaries Millions of Yen 2007 2006 Thousands of U.S. Dollars (Note 1) 2007 Net sales (Note 13)...Costs and expenses (Note 13): Cost of sales ...Selling, general and administrative expenses ...Research and development expenses ...Operating income...

  • Page 29
    ...Changes in Net Assets Years ended March 31, 2007 and 2006 Casio Computer Co., Ltd. and Subsidiaries Shares of common stock Common stock Additional paid-in capital Millions of Yen Net unrealized Foreign holding currency Retained gains on translation earnings securities adjustments Treasury stock...

  • Page 30
    ... 2006 Casio Computer Co., Ltd. and Subsidiaries Millions of Yen 2007 2006 Thousands of U.S. Dollars (Note 1) 2007 Cash flows from operating activities: Income before income taxes and minority interests ...Depreciation (including software) ...Amortization of goodwill ...Loss on disposal and sales...

  • Page 31
    ... statements were not required to be filed with the Local Finance Bureau. The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate at March 31, 2007, which was ¥118 to U.S. $1. The convenience...

  • Page 32
    ... ranges from 2 years to 65 years for buildings and structures and 1 year to 20 years for machinery and equipment. Software costs Software is categorized by the following purposes and amortized using the following two methods. Software for market sales: The production costs for the master product...

  • Page 33
    ... generally accepted in Japan. Income taxes Taxes on income consist of corporation, inhabitants and enterprise taxes. Deferred income taxes are provided for the items relating to intercompany profit elimination in connection with the calculation of the consolidated results of operations. In addition...

  • Page 34
    ... and 2006 consisted of the following: Millions of Yen 2007 2006 Thousands of U.S. Dollars 2007 Cash and time deposits ...Time deposits over three months ...Marketable securities within three months...Short-term loans receivable with resale agreement ...Cash and cash equivalents ...Significant non...

  • Page 35
    ... Millions of Yen 2007 2006 Thousands of U.S. Dollars 2007 Certificates of deposit...(b) Book value of available-for-sale securities ¥5,130 ¥10,000 $43,475 Thousands of U.S. Dollars 2007 Millions of Yen 2007 2006 Unlisted equity securities ...Commercial paper ...Unlisted bonds ...Total...

  • Page 36
    ... Realized gain (loss) 2006 Contract amount Due after Total one year Fair value Realized gain (loss) Thousands of U.S. Dollars 2007 Contract amount Due after Fair Realized Total one year value gain (loss) Interest rate swaps: Receive fix/ Pay float ...Total ... ¥20,000 ¥20,000 ¥20,000 ¥20,000...

  • Page 37
    ...tax rate ... 40.7% 0.4 (2.9) (2.0) (3.7) 3.9 (0.2) 36.2% 40.7% 0.3 (1.5) (1.9) (4.4) 2.6 (0.1) 35.7% Thousands of U.S. Dollars 2007 Significant components of deferred tax assets and liabilities as of March 31, 2007 and 2006 were as follows: Millions of Yen 2007 2006 Deferred tax assets: Employees...

  • Page 38
    ...for new shares is required to be designated as common stock. However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of the new shares as additional paid-in capital, which is included in capital surplus. Under the Law, in cases where...

  • Page 39
    ... of outstanding future lease payments due at March 31, 2007 and 2006 were as follows: Millions of Yen 2007 2006 Thousands of U.S. Dollars 2007 Future lease payments: Due within one year ...Due over one year ...Total... ¥184 167 ¥351 ¥279 79 ¥358 $1,560 1,415 $2,975 Annual Report 2007 37

  • Page 40
    ... of manufacturing and sales, profit management and related assets. 2. Major products in each business segment: (1) Electronics: Electronic calculators, Label printers, Electronic dictionaries, Digital cameras, Electronic musical instruments, Digital watches, Analog watches, Clocks, Cellular phones...

  • Page 41
    ... were as follows: (1) North America ...U.S.A., Canada (2) Europe...U.K., Germany, France (3) Asia ...Hong Kong, Singapore, China, South Korea, Taiwan 3. The above overseas net sales represent net sales made outside Japan by the parent company and consolidated subsidiaries. Annual Report 2007 39

  • Page 42
    ... new shares at a price below the market price. 16. Subsequent Events At the annual shareholders' meeting held on June 28, 2007, the Company's shareholders approved the payment of a cash dividend of ¥23.00 ($0.19) per share aggregating ¥6,346 million ($53,780 thousand) to shareholders of record...

  • Page 43
    Independent Auditors' Report To the Shareholders and Board of Directors of CASIO COMPUTER CO., LTD.: We have audited the accompanying consolidated balance sheets of CASIO COMPUTER CO.,LTD. (a Japanese corporation) and consolidated subsidiaries as of March 31, 2007 and 2006, the related ...

  • Page 44
    ...: Employees: Home Page Address: Domestic Offices Head Office 6-2, Hon-machi 1-chome, Shibuya-ku, Tokyo 151-8543 Accounting Department Tel: (03) 5334-4852 June 1957 ¥48,592 million 13,013 http:// world.casio.com/ R&D Centers Hamura Research & Development Center 3-2-1, Sakae-cho, Hamura City, Tokyo...

  • Page 45
    ...March 31, 2007) Stock Exchange Listings Tokyo Yen Share Price Range Transfer Agent The Sumitomo Trust and Banking Corporation Stock Transfer Agency Dept. 4-4, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan Number of Shares Authorized: 471,693,000 shares Issued: 279,020,914 shares* Number of...

  • Page 46
    CASIO COMPUTER CO., LTD. 6-2, Hon-machi 1-chome, Shibuya-ku, Tokyo 151-8543, Japan http://world.casio.com/ 01 Printed in Japan on 100% recycled paper