Wacom 2005 Annual Report Download - page 7

W acom Co., Ltd. Annual Report 2005 6
Business developments and performance
in the 22nd fiscal year
The global business environment and our business
environment stayed relatively stable throughout the
22nd fiscal year despite growing concern over oil price
increases and a slow down in the Japanese consumer PC
segment, caused by loss of consumer confidence due to
natural disasters.
In the first half of the 22nd fiscal year, we globally
launched a new generation professional product line. In
the second half of the fiscal year, we introduced new
high-end interactive pen displays and new consumer
products for business users.
In the component business, while sustaining a healthy
growth in Tablet PC , we invested in developing new
products for next-generation mobile phones, and took
steps to enhance SCM systems for suppor ting mass
production. W acom D igital Solutions Co., Ltd., a Korean
subsidiary founded at the beginning of the fiscal year
under review, has also progressed very steadily.
As a consequence, our consolidated financial result
showed net sales of 17,651 million yen (up 6.9%),
operating income of 1,841 million yen (up 8.2%), and
net income of 994 million yen (up 60.3%). All
percentage comparisons are on a year-over-year basis.
Business outlook and mid-term business
strategy
For the 23rd fiscal year (the fiscal year ending March 31,
2006), W acom expects to see another period of
relatively stable business, with steady growth in
professional and consumer business segments.
Interactive pen displays should continue to expand their
reach in medical and other specialized fields. In the
component business, we expect another year of strong
growth for Tablet PCs and hope to see the mobile
phone segment start to benefit from W acom’s unique
user interface technology. W e will also invest in
developing new technologies and new businesses, in
addition to investing in the global SCM system and a
new Australian subsidiary. And we are committed to
make W acom technology the de facto standard in the
digital paper era.
Customer satisfaction, as epitomized by our corporate
philosophy “harmonious development between man and
technology,” remains our first priority. To support our
mid- and long-term visions, we will continue to improve
operational efficiency and cash flow. W acom will strive
to achieve W P212— our mid-term business plan— with
goals of reaching a 20% compound annual revenue
growth rate during the period from FY2005 to FY2009,
and a 12% operating profit margin by FY2009.
D ividend policy and message to our
shareholders
As a reflection of the 22nd fiscal year’s solid results and
to express our appreciation for unchanging support, we
decided to offer our shareholders the ordinary dividend
of ¥2,000 per share as of March 31, 2005.
O n a final comment, we are committed to enhancing
our global leadership through the next decade and
throughout the 21st century by continuing to invest in
new technology and by establishing our business
infrastructure on a global basis. O ur executives and
employees will work as one team to continuously
improve W acom’s corporate value and enhance
W acom’s status as a global leader with a vital role in
enhancing the creativity of the human spirit. Thank you
again for your unchanging support which is essential for
W acom’s success.
1983 1990 1995 2002
Input
market
Internet Broadband Ubiquitous
D igitizer
and software
Tablets for
professional use
Tablets for
consumer use
Interactive
pen displays
Pen sensor
components
Electronic seals
and other security
applications
Technology,
expertise, and
sales of PD M
D evelopment
and sales of ECAD
N ear
future
Toward becoming
the de facto standard
for the Digital Paper era
The world’s first tablet operated
by cordless electronic pen developed.
Core technology established
with electronic pens.
Tablet market
CAD market
Growth Strategy
Development and Sales
“Digital Paper” stated in this repor t is a registered trademark of Fuji X erox Co., Ltd.