Casio 2011 Annual Report Download - page 5

To Our Stakeholders
During fiscal 2011, although the Japanese and global
economies showed signs of moderate recovery through
March of this year underpinned by the high growth rates in
newly emerging nations and government economic stimulus
measures, the Great East Japan Earthquake that took place
on March 11 drastically changed the situation for Japan.
In this environment, consolidated net sales for fiscal 2011
declined 20.2% year-on-year to ¥341.6 billion, which is
partly attributable to the exclusion of a subsidiary from con-
solidation as the result of business integration. By segment,
sales stood at ¥252.0 billion in the Consumer segment,
down 25.2% year-on-year. The System Equipment segment
recorded sales up 6.8% year-on-year to ¥46.5 billion and
the Others segment registered ¥43.0 billion in sales, down
9.0% year-on-year.
In the timepiece business, brands such as G-SHOCK
and EDIFICE maintained their strong performance, with
increased overseas sales primarily in North America and
Asia partly attributable to global promotional campaigns.
The product lineup of women’s SHEEN brand metal analog
watches was also enhanced, tapping into the market for
women’s watches. Due to the continued strong sales of
the EX-word series, the electronic dictionary business main-
tained the overwhelming top share in the Japanese market,
and sales also expanded in China. The digital camera busi-
ness developed and released high value-added products,
which included the EX-ZR100 featuring Casio’s HDR-ART
function, which makes it easy to create beautiful and artistic
photographs, and the EX-TR100, which achieves freedom
in shooting photos thanks to its rotating LCD screen and
frame.
In income for fiscal 2011, the Consumer segment
posted ¥16.5 billion in operating income, which was a
significant improvement. Within the segment, timepieces
and electronic dictionaries remained highly profitable. The
System Equipment segment recorded a ¥1.4 billion operat-
ing loss due to the one-off start up costs for the projector
business. The Others segment registered ¥0.5 billion in
operating income. As a result, Casio posted ¥12.0 billion
in consolidated operating income, allowing for adjustment.
Casio recorded ¥11.7 billion in ordinary income and ¥5.6
billion in net income for the fiscal year.
Casio will make its best effort to resolve the effects of the
Great East Japan Earthquake in the first half of fiscal 2012,
and the Company aims to increase earnings for the full
fiscal year. The main strategies are as below.
(a) Casio will engage in the full-scale development of the
new online service business, Casio Imaging Square. The
Company will strengthen and enhance the functions of
the service, which lets people use Casio’s original digital
technology to easily transform an ordinary photograph
into an inspiring work of art. Casio aims for the launch
of this fee-based service to make a definite contribution
to earnings.
(b) In the timepiece business, Casio will seek to further
expand sales and maintain strong profitability by
continuing with its proactive global promotion cam-
paigns for brands such as G-SHOCK and EDIFICE and
strengthening the lineup of watches for women such as
SHEEN and Baby-G.
(c) In the electronic dictionary business, Casio will seek to
maintain its No. 1 share and high profitability in the
Japanese market. Moreover, in efforts to expand, Casio
will pursue increase sales in overseas markets such as
China.
(d) Casio will aim to increase sales in newly emerging
nations by strengthening its direct sales channels.
Although the earthquake disaster had a negative impact
on parts procurement, we will overcome this problem and
continue to grow by improving profitability in core business
segments and expanding new businesses. Therefore, we
look forward to the ongoing support of our stakeholders.
August 2011
Kazuo Kashio, President & CEO
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Annual Report 2011