Wacom 2008 Annual Report Download - page 21

0
2,000
4,000
6,000
8,000
10,000
0
5
10
15
20
25
30
40
50
60
70
80
(Millions of yen)
(%)
(%)
’04 ’05 ’06 ’07 ’08
’04 ’05 ’06 ’07 ’08
’04 ’05 ’06 ’07 ’08
(For the year’s ended March 31)
(For the year’s ended March 31)
(For the year’s ended March 31)
Overview of Business Performance
How did the global economy affect
our business in our 25th year?
Despite soaring global oil prices and growing concerns of an
economic slowdown in certain regions, our business in fiscal
2007, the year ended March 31, 2008 was relatively stable until
the end of Q3. However, conditions in Q4 worsened due to the
rapid depreciation of the United States dollar against the
Japanese yen. We also witnessed an economic slowdown
caused by the subprime loan problem in the United States.
Corporate investment in plants and equipment was steady in
Japan. However, we found that our business here was
compromised due to high raw material prices, a decrease in
housing construction, and weak consumer consumption, as well
as a significant slowdown in PC purchases. In the United States,
credit fears caused by the subprime loan problem spread and
became a grave concern. In the second half of the year,
consumer spending and economic growth slowed. The EU
economy enjoyed steady growth in the first half, then
experienced a slowdown in the second half due to the rapid
appreciation of the Euro and soaring oil prices. On a more
positive note, we saw sustained economic growth in Asian
countries, with investment in equipment and a continual increase
in individual consumption.
Fortunately, our performance was favorable and, despite global
economic factors, we enjoyed worldwide growth. We took on a
number of significant business initiatives during the year. Our bold,
new corporate brand was developed in conjunction with our 25th
anniversary, and helped to lead us into new consumer markets,
in addition to the markets in our traditional graphics base.
With our acquisition of TouchKO Corporation, we added superior
capacitive touch technologies to our portfolio. This acquisition will
further broaden our technological expertise in the area of user
interface solutions. We strive for global market and technology
leadership in intuitive, natural user interface solutions and we
believe that this acquisition will help us along that path.
Additional corporate initiatives included preparing for compliance
with the Financial Instruments and Exchange Law (J-SOX) which
began enforcement from April 2008. We also applied an
advanced pricing agreement (APA) on overseas transfer pricing
between the United States and Germany, and introduced a
takeover defense package. In order to protect and strengthen
our intellectual property, we filed patent-infringement lawsuits
against Hanwang Technology Corporation that resulted in a
comprehensive settlement agreement on April 9, 2008.
As a result, the consolidated business results ended in sales of
¥36.74bn (+27.6% YoY), operating profit ¥5.54bn (+21.3% YoY),
recurring profit ¥5.58bn (+20.3% YoY), and net profit ¥3.50bn
(+22.7% YoY).
(ROE)
(ROA)
Note: Common shares were split on a five-for-one basis on November
20, 2003 and on a four-for-one basis on November 18, 2005.
Per share data before 2005.3.F.Y.term reflect the above share
splits.
Wacom Co., Ltd. and Its Subsidiaries
Net income per share (basic)
ROE/ROA
Equity ratio
1,539
2,457
5,421
6,886
8,349
11.1
15.2
21.5
19.3
4.7
7.0
12.2 12.4
20.1
12.9
43.9
47.5
63.2 64.9 63.5
Note 1: ROA equals net income/average total assets.
Note 2: During its 23rd fiscal year, the Group procured through a
public offering approximately 4.2 billion yen in capital funds
by allocating new shares to a third party.
20