Wacom 2006 Annual Report Download

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ANNUAL REPO RT 2006
Creating harmony between people and technology

Table of contents

  • Page 1
    AN N UAL REPO RT 2 0 0 6 Creating harmony between people and technology

  • Page 2
    ... technologically sophisticated products that people can use intuitively and effortlessly regardless of their background. In the 1980s, we pioneered the development of a pen tablet that made cordless, battery-free computer input possible for the first time. The pen tablet's user-friendly interface...

  • Page 3
    ... design and an improved pen that features a rubber grip and an ergonomic side-switch. In addition, new shortcut keys and a scroll/zoom wheel allow users to fully concentrate on getting the job done. Pen tablet sales surged in the United States and Europe, as digital photo editing has become more...

  • Page 4
    ... schools, e-learning, etc.) Business ( office systems, shop systems, call centers, signature verification etc.) Administration ( national government, local government) Pen sensor technology ( Tablet PCs, mobile phones, PDAs, games, ePaper, etc.) Customers 3 W acom Co., Ltd. Annual Report 2006

  • Page 5
    ..., N SW , Australia as a sales base for the O ceania market Sep. 2005 • Marketing of Graphire4/FAVO CTE-440 and CTE-640 begins D ec. 2005 • The Company's stock is listed on the First section of the Tokyo Stock Exchange Mar. 2006 • Marketing of EC AD /dio Ver. 6.5 begins Apr. 2006 • Penabled...

  • Page 6
    ... by general consumers around the globe. Interactive pen displays have been widely adopted in health care and IT-based education markets. Beyond the Tablet PC business, the scope of applications for our pen technology is expanding into mobile devices such as cellular phones and home electronics. As...

  • Page 7
    ... our growth included the listing of the Company on the First Section of the Tokyo Stock Exchange, our focus on developing new technologies, reinforcement of supply chain management ( SCM ) for production and logistics, and enhancement of our operational bases in Asia. purchasing. In the component...

  • Page 8
    ... W acom's products are sold outside of J apan. consumers demand products with a high level of sophistication. Asia, like Europe and J apan, shows strong corporate sector demand with a particular emphasis on low-price products. In product development, J apan is the focal point of hardware design due...

  • Page 9
    ... States.The company is not only responsible for sales and customer support in N orth and Latin America but also plays a central role in global marketing and product planning for professional pen tablets, and the development of driver software. Head Office ( W CL) W acom Europe GmbH ( W EG ) W EG...

  • Page 10
    ...categories: professional pen tablets, consumer pen tablets, and interactive pen displays. Including pen sensor components, we maintain four product lines. W e sell products in four major regions: J apan, N orth and Latin America, Europe/Middle East/Africa, and Asia/O ceania. W ith our head office in...

  • Page 11
    ... as editing digital photos and creating fun artwork for comics or illustrated postcards.The Graphire/FAVO series is enjoyed by customers of both genders and all ages. Biz Tablet is a small tablet specifically developed for presentations, meetings, and other business purposes. Pen Sensor Components...

  • Page 12
    ...instructors can directly enter teaching materials on an LCD display and have them instantly displayed on a large screen. In addition, the use of TV phones and W eb-based whiteboards facilitates remote instruction and online correction of student work. Business The use of interactive pen displays is...

  • Page 13
    ... W e develop C AD systems for electrical engineering firms which specialize in the design of electrical appliances and control equipment, as well as mechanical engineering firms.This segment is also responsible for sales and the provision of customer support and maintenance services for product data...

  • Page 14
    ... Kamoto Component Business D ivision Masahiro O ba Supply Chain Management D ivision Koji Shimoda Product Management D ivision ( As of J uly 1, 2006 ) ( From left) Yasuyuki Fujishima,W ataru H asegawa, Sadao Yamamoto, Masahiko Yamada,Takeshi O ki, Shigeki Komiyama Corporate Governance The Board of...

  • Page 15
    ... Business Performance 19 Consolidated Balance Sheets 21 Consolidated Statements of Income 22 Consolidated Statements of Shareholders' Equity 23 Consolidated Statements of Cash Flows 24 N otes to Consolidated Financial Statements 32 Repor t of Independent Auditors W acom Co., Ltd. Annual Report 2006...

  • Page 16
    ... 13,287,904 21,032,863 At year end: Cash and cash equivalents at end of year Total shareholders' equity Total assets N et income per share (yen and U.S. dollars):* * Basic D iluted Total shareholders' equity raito (%) Return on equity (%) N umber of employees 6,577.97 - 40.9 2.5 426 28,088.55 - 39...

  • Page 17
    ..., the release of new models and market expansion for consumer pen tablets, growth in demand for professional interactive pen displays, an increase in sales of pen sensor components for Tablet PCs, reinforcing technological development, expanding operational bases in the Asian and Pacific regions...

  • Page 18
    ... as well as general business users. The sales of component products rose due to the growth in the pen sensor business for both new and existing customers in line with the growing Tablet PC market and the addition of Tablet PC protection panels to our product line-up. As a result, sales grew to ¥ 23...

  • Page 19
    ..., or U.S.$2 million for payment of cash dividends and the expenditure of ¥ 399 million, or U.S.$3 million for payment of long-term debt. 3,720 3,500 3,000 2,500 2,000 1,500 1,000 500 0 -723 -130 -153 '02 -1,039 -500 -1,000 -1,500 '03 '04 '05 '06 W acom Co., Ltd. Annual Report 2006 18

  • Page 20
    ...yen Thousands of U.S. dollars ( N ote 1 ) March 31 Assets Current assets: Cash and cash equivalents ( N ote 2 ) N otes and accounts receivable, trade Inventories ( N otes..., plant and equipment, net Investment securities and other assets - Investment securities ( N otes 2 and 3 ) Software ( N ote...

  • Page 21
    ...795,672 595 4,360 1,818 6,773 Shareholders' equity ( N ote 7) : Common stock, Authorized: 1,380,000 shares Issued: 412,600 shares in 2006 and 95,955 shares in 2005 Additional paid-in capital Retained earnings N et unrealized gains on other securities ( N otes 2 and 3 ) Foreign currency translation...

  • Page 22
    ... 13): N et income Basic D iluted Cash dividends applicable to the year Yen U.S. dollars ( N ote 1) ¥9,826.49 9,386.80 ¥2,000.00 ¥5,420.51 5,283.96 ¥1,000.00 $46.14 44.98 $8.51 The accompanying notes are an integral part of the financial statements. 21 W acom Co., Ltd. Annual Report 2006

  • Page 23
    ...Its Subsidiaries Thousands of yen Year ended March 31 2005 Thousands of U.S. dollars ( N ote 1 ) Year ended March 31 2006 2006 Common stock: Beginning of period Public stock offering Allocation of new shares to a third party Exercise of warrants End of period ¥1,533,050 - - 67,428 ¥1,600,478...

  • Page 24
    ...et cash provided by operating activities Cash flows from investing activities: Payments for purchases of fixed assets Proceeds from sale of fixed assets Payments for purchases of investment securities Proceeds from sale of investment securities D ecrease in time... W acom Co., Ltd. Annual Report 2006

  • Page 25
    ... the Company is incorporated and principally operates. The translation of J apanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside J apan and has been calculated at the rate of J PÂ¥117.47 = U.S.$1.00, the approximate rate of exchange on March 31, 2006...

  • Page 26
    ... Machinery, equipment and vehicles 5 to 13 years Tools and furniture 2 to 20 years O rdinary maintenance and repair expenses are charged to income as incurred. Major replacement and improvement expenses are capitalized. ( 10) Leases Leases that transfer substantially all the risks and rewards of...

  • Page 27
    ... quotations are not available Thousands of yen Thousands of U.S. dollars March 31, 2006 Book carrying amount Acquisition cost H eld-to-maturity debt securities Share stocks invested in affiliates O ther securities Share stocks not listed on the market ¥- - 55,804 ¥55,804 $- - 475 $475 O ther...

  • Page 28
    ...¥34,528 5,564 2,525 27,644 ¥70,261 ¥35,892 5,637 4,044 - ¥45,573 $305 48 34 - $387 Appropriation for : Cash dividends, ¥1,000.00 ( $8.51) per share Bonuses to directors and statutory corporate auditors ¥ 412,600 28,000 ¥ 440,600 $3,512 238 $3,750 27 W acom Co., Ltd. Annual Report 2006

  • Page 29
    ... transfer ownership of the assets to the lessee, are as follows: a) Acquisition costs of leased assets under capital leases are as follows: Thousands of yen 2005 March 31 2006 Thousands of U.S. dollars March 31 2006 10. Income taxes: Income taxes applicable to the Company include ( 1 ) corporation...

  • Page 30
    ...435 10,097 10,097 Foreign exchange forward contracts: To sell U.S. dollars ¥295,596 ¥298,457 ¥2,861 The following are the stock options granted to directors and employees which would result in an increase in the number of common shares with the following exercise prices. D ate of ordinary...

  • Page 31
    ... of the product line and management control of the business. b) The main products of each business segment: i) ESD business: Professional graphics tablet, Consumer graphics tablet, LCD tablet, Pen sensor component ii) ECS business: EC AD /duo, SMARTEAM c) Corporate expenses mainly include...

  • Page 32
    ... Canada ii) Europe:The United Kingdom, Germany, France, N etherlands, etc. iii) O thers: Mainly Asia and O ceania area such as South Korea,Taiwan, Australia, China c) O verseas sales comprise the sales of the Company and its subsidiaries outside J apan. 31 W acom Co., Ltd. Annual Report 2006

  • Page 33
    ... in U.S. dollars, which are provided solely for the reader, have been translated on the basis set forth in Note financial statements. 1 to the convenience of the consolidated accompanying ChuoAoyama PricewaterhouseCoopers Tokyo, Japan June 30, 2006 W acom Co., Ltd. Annual Report 2006 32

  • Page 34
    ...input devices • Professional pen tablets • Consumer pen tablets • Interactive pen displays • Pen sensor components 2. Engineering Collaborative Solutions ( ECS) Business D evelopment, manufacture, sale, support, and maintenance of industrial systems • Electronic design C AD software • PD...

  • Page 35
    ... Listing Tokyo Stock Exchange First Section, J asdaq Securities Exchange ( Trade code 6727 ) Share Data Total number of shares to be issued Total number of issued shares N umber of shareholders 1,380,000 412,600 27,152 Major Shareholders N ame of shareholder Yoji Eto J apan Trustee Services Bank...

  • Page 36
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