Wacom 2006 Annual Report Download - page 7

Growth Strategy W P515
“Digital Paper” stated in this report is a registered trademark of Fuji Xerox Co., Ltd.
The world’s first
tablet operated by cordless
electronic pen developed.
Core technology established
with electronic pens.
   
D evelopment
and sales
of EC AD
Technology,
expertise, and
sales of PDM
Tablet market CAD market
N ear
future
W acom Co., Ltd. Annual Report 2006 6
Business developments and performance
in the 23rd fiscal year
O ur business environment remained relatively stable
throughout the 23rd fiscal year thanks to a robust
international economy. O ur operating results for the
fiscal year improved substantially compared to the
previous year due to steady growth of professional
products launched during the previous year, high growth
in consumer products released during the period under
review, and strong growth in the component business.
In the Americas, Europe, and Asia the expanding digital
camera market and our successful development of new
sales channels contributed to regional growth. O ther
factors fueling 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.
Business outlook and business strategy
for the 24th fiscal year
For the 24th fiscal year (the fiscal year ending March 31,
2007), W acom expects a relatively stable business
environment despite several potential risk factors such as
high oil prices and any related impact on global economic
growth. H owever, we also expect the rate of revenue
growth to be lower compared with the previous fiscal
year, which benefited from the introduction of new
products as well as strong consumer demand. Although
the anticipated release of W indows VistaTM will contribute
to the increased demand for pen tablets on a long term
basis, its contribution for the 24th fiscal year will be
constrained by moderate PC sales as consumers hold off
purchasing. In the component business, we will continue to
focus on supporting new platforms such as cellular phones
and electronic paper in addition to Tablet PCs. Under
these market environment, W acom will, as the foundation
for attaining W P515 (our mid-term business plan), continue
to focus on investing in the development of new
technologies, reinforcing our SCM system and IT
infrastructure, and expansion of operational bases in Asia.
Also, W acom Group will implement group-wide programs
to improve corporate governance on a global basis* .
As a result of these efforts, we project net sales of ¥28,000
million (up 16.7%) and net income of ¥2,450 million (up
14.2%) for the fiscal year ending March 31, 2007.
* O ur mid-term business plan W P515 sets goals for net sales of ¥50 billion and
operating profit margin higher than 15% for the fiscal year ending March 31, 2010.
D ividend policy and message to our
shareholders
To express our appreciation for unchanging support, we
have decided to offer our shareholders an ordinary
dividend of ¥1,000 per share as of March 31, 2006. W e
plan to maintain a payout ratio of at least 20% and
increase this percentage over the long term.
W e will continue to strive to improve corporate value
by developing new technologies, retaining talented
people, improving productivity and efficiency, and
reinforcing our business infrastructure. In addition, we
are committed to meeting shareholder expectations and
fulfilling our social responsibility as a corporate citizen by
improving corporate governance and compliance. W e
deeply appreciate your support, which is essential for
W acom’s success.
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
Toward becoming
the de facto standard
for the Digital Paper era
Development and Sales
60,000
’06 ’07 ’08 ’09 ’10
50,000
40,000
30,000
20,000
10,000
0
(Millions of yen)
N et sales
O perating income