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Business Report
Apr. 2014 to Mar. 2015
(FY 03/2015)
Wacom Co., Ltd.
(TSE Sec.1 6727)

Table of contents

  • Page 1
    Business Report Apr. 2014 to Mar. 2015 (FY 03/2015) Wacom Co., Ltd. (TSE Sec.1 6727)

  • Page 2
    ... 40-41 42-44 45 FY 03/15 Results Overview Consolidated P/L by Business Line Consolidated Sales/Profit Comparison Operating Expenses Comparison Business Categories Business Highlights Sales by Product Line Sales by Region, Sales Changes for Local Currencies Consolidated B/S, C/F FY 03/16 Basic Policy...

  • Page 3
    ... are changing rapidly. Performance overview ï,· All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. In Brand product Business, sales grew steadily and marked a record high for the whole fiscal period owing to expansion in the Vertical Market Business, sales growth of our mobile products, and...

  • Page 4
    FY03/15 Results Overview Financial Summary (JPY) Business Performance FY03/15 74.56 bn YOY -5.2ï¼... Sales Operating Profit Recurring Profit 6.14 bn 6.07 bn -29.1ï¼... -26.8ï¼... Net...YOY +10.0% (Weak JPY) 1 EURO All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 138.68 JPY +3.5% (Weak JPY) 4

  • Page 5
    ... © 2015 Wacom Co., Ltd. Effects of Forex exchange for FY：Stronger dollar (10.03 JPY) Sales +4,710 mil, OP +50 mil Stronger Euro (8.37 JPY) Sales +490 mil, OP +320 mil • Extraordinary loss：Business structure improvement expenses 167 mil Loss on sales of noncurrent assets (company-owned houses...

  • Page 6
    ...04/14-03/15 YOY Change Amount Ratio Sales Brand Product biz 78,615 38,960 74,557 43,625 -4,058 4,665 -5.2% 12.0% Component Biz Other biz 39,002 653 8,663 30,277 655 6,143 -8,725 2 -2,520 -22.4% 0.2% -29.1% Operating Profit Brand Product biz Component Biz Other biz Corp. and others 5,214...

  • Page 7
    Consolidated Sales Comparison (Unit: Million JPY) -5.2% 78,615 653 80,000 70,000 74,557 655 30,277 Change Ratio 60,000 50,000 40,000 39,002 +0.2% -22.4% 30,000 20,000 10,000 38,960 43,625 +12.0% 0 FY 03/14 Brand Product biz All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/15...

  • Page 8
    Consolidated Profit Comparison (Unit: Million JPY) 9,000 8,000 7,000 -29.1% 8,663 8,282 6,143 -26.8% -33.8% 6,065 6,000 5,000 4,000 5,249 3,473 3,000 2,000 1,000 0 FY 03/14 Operating Profit All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/15 Recurring Profit Net Profit 8

  • Page 9
    ...17.5% 11.1% Ad. & Promo. Others Total 3,541 7,593 21,268 3,333 8,853 23,908 -208 1,260 2,640 -5.9% 16.6% 12.4% SG&A Ratio 27.1% 32.1% Key changes in increases ï,· Expenses for next-generation global IT infrastructure (refer to the next page) ï,· Increase in the number of employees FY 03/14...

  • Page 10
    ... organization by business category and integration of human resource management system Establishment of digital ink standard and expansion of the ink application 10 ï,· ï,· Global HR project ï,· WILL (Wacom Ink Layer Language) project ï,· All Rights Reserved. Copyright © 2015 Wacom Co., Ltd...

  • Page 11
    ... Business Pen Tablet ï,· (Unit: JPY) Brand Product Business 43.63 bn 36.48 bn 21.98 bn +12.0% +9.4% +6.4% Intuos Pro was well received for its high value-added features for professional use, and maintained stable sales especially in Europe, U.S. and Asia. ï,· Intuos (former Bamboo tablet...

  • Page 12
    ... Cintiq Companion Hybrid, Wacom's first mobile tablet product maintained steady sales owing to their solid reputation, but fell short of target. Launched the next generation Cintiq Companion 2 in February, which was highly appraised for its QHD display and light body. Launched Inutos Creative Stylus...

  • Page 13
    ... Highlights: Brand Product Business Creative Business Display ï,· (Unit: JPY) 27 QHD 27 QHD touch 10.59 bn +8.1% Cintiq 22HD contributed steadily to sales expansion. On the other hand, Cintiq 13HD lost sales momentum after two years since its release and sales of Cintiq 24HD also stagnated...

  • Page 14
    ... of pen on paper. The 3rd generation Bamboo Stylus solo & Bamboo Stylus duo were released, which contributed to sales increase thanks to their unique carbon fiber nibs and premium design. ï,· ï,· ï,· Launched Wacom Cloud services. Wacom Cloud All Rights Reserved. Copyright © 2015 Wacom Co...

  • Page 15
    ... Adoption of the STU series, signature pen tablets, expanded in credit card transaction and counter services in the financial sector. The light-weight STU-530 and STU-430 showed favorable sales. DTU-1031 for counter services contributed to sales. Launched DTU-1141 with encryption processing function...

  • Page 16
    ... Business Pen Sensor System for Smartphones ï,· (Unit: JPY) Smartphone models 30.27 bn 18.33 bn -22.4% -17.4% 4 Edge Sales showed a rapid recovery in 3Q owing to favorable shipments for Samsung's Galaxy Note 4, which had stagnated due to the delay in mass production. However, its sales...

  • Page 17
    ... for pen technology solutions, Active ES Pen Technology was developed based on Wacom's original technology, and began mass production of customers' new models. By incorporating both multi-touch and pen input functions into the touch panel, we eliminated the need for a dedicated pen sensor board and...

  • Page 18
    ... Replacement demand contributed to steady sales. Along with the sales of major product ECAD dio 2015, we have developed a new product with key functions targeted toward machinery and robotics. F&A (Corporate) ï,· Continued to invest in business infrastructure for growth and operational efficiency...

  • Page 19
    Sales by Product Line in Brand Product (Unit: Million JPY) +12.0% 38,960 3,935 1,691 9,799 2,871 Creative biz 36,480 +9.4% 45,000 40,000 35,000 30,000 25,000 20,000 Creative biz 15,000 33,334 10,000 5,000 0 FY 03/14 Creative・Pen tablet All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 43,...

  • Page 20
    ...) 40,000 35,000 30,000 39,002 5,716 -22.4% Change Ratio 30,277 11,096 3,404 8,542 -40.4% -23.0% -17.4% 25,000 20,000 15,000 10,000 5,000 0 22,190 18,331 FY 03/14 Pen for Smartphone All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/15 Pen for Tablet Pen for Notebook PC, etc. 20

  • Page 21
    Quarterly Trend by Product Line (Unit: Million JPY) 24,954 23,389 25,000 20...13/7-9 13/10-12 14/1-3 14/4-6 14/7-9 14/10-12 15/1-3 Professional Creative Consumer(Bamboo tablet, etc.) Consumer(Stylus, etc.) Business(VM) Comp. CAD, etc. 21 All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.

  • Page 22
    Sales by Region (Unit: Million JPY) -5.2% 78,615 6,874 80,000 70,000 74,557 8,702 Change Ratio 26.6% 14.7% ( 12...0 FY 03/14 Comp. All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/15 U.S. Germany Asia Oceania 22 Japan (Note) There are no regional segments in the Component business.

  • Page 23
    Sales Changes for Local Currencies Region Japan (excluding Component biz) Currency JPY YOY Change Ratio -6.5ï¼... U.S. Europe China USD EUR CNY 1.0ï¼... 12.6ï¼... 17.5ï¼... Korea Australia Singapore KRW AUD USD 15.9ï¼... -6.9ï¼... -4.5ï¼... Hong Kong USD -11.7ï¼... All Rights Reserved. Copyright © 2015...

  • Page 24
    ...,000 5,000 0 12/4-6 12/7-9 12/10-12 13/1-3 13/4-6 13/7-9 13/10-12 14/1-3 14/4-6 14/7-9 14/10-12 15/1-3 Comp. All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. Japan U.S. Germany Asia Oceania 24 (Note) There are no regional segments in the Component...

  • Page 25
    ... Current Assets (Unit: Million JPY) End of Mar. 2015 Assets Change ・ Increase in intangible fixed assets (increase in software suspense...(sales decrease in Component biz) -1,445 ・ Decrease in investment and other assets (sales ... 1.2% 25 All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.

  • Page 26
    ...C/F from operating activities FY 03/15 04/14 -03/15 (Unit: Million JPY) YoY Change Amount Major Activities in FY03/15 C/F from operating activities ・ Net profit ...-6,202 1,293 C/F from financing activities ・ Cash dividends paid -2,904 All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 26

  • Page 27
    FY 03/2016 Basic Policy and Business Focus

  • Page 28
    ... product category, 3D design and 3D printing evolution in advanced countries and digital design expansion in emerging markets. ï,· In the UI field, Pen & Ink is expected to gain momentum as the need for personal digital contents increases among mobile consumers. ï,· Integration of Consumer stylus...

  • Page 29
    ... business infrastructure. ï,· Establish AES and WILL as the global digital pen and ink standard. ï,· Build a new framework for future innovations in technology and products. ï,· Enhance corporate governance and processes for improving corporate value. All Rights Reserved. Copyright © 2015 Wacom...

  • Page 30
    ... Stylus, Bamboo Pad, etc. Business solution ï,· ï,· Serves society by providing innovative solutions STU (Signature Tablet), DT (Display Tablet) series, etc. Provides technology, apps and platforms ï,· WILL, Bamboo Paper, Sign& Save Technology Solution Business UI technology solutions for mobile...

  • Page 31
    ...2015) (Note) Due to risks and uncertainties involved in the forecast of market and customer trends of the Technology Solution business (former Component Business...JPY 1 550 0 JPY 1 120 90 31 Sales Operating Profit All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. A stronger yen has a negative...

  • Page 32
    ... global organizations and molds, etc Depreciation 2.50 bn (YOY 26.9ï¼...) R&D expense 4.00 bn (YOY 25.8ï¼...) • Key items: Development of new products in Brand business, development of next generation ICs, and basic technology research, etc. All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 32

  • Page 33
    ...473 10.5% 4.7% 3,530 10.4% 4.2% 1.6% -0.1% All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. • We forecast an YOY growth of OP in 2H owing to higher sales in both Brand and Technology Solution businesses driven by new products and business seasonality. • We forecast NP to stay at the...

  • Page 34
    ... Other biz Operating Profit 655 6,143 5,965 700 5,500 9,280 45 -643 3,315 6.9% -10.5% 55.6% Brand Product biz Tech. Solution Biz Other biz Corp. and others OPM All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 4,642 55 -4,519 8.2% 4,570 60 -8,410 6.5% -72 5 -3,891 -1.5% 8.8% 86.1% 34

  • Page 35
    ... Unit and Corporate Functions due to the global organizational changes. The Technology Solutions business forecasts sales recovery as smartphone segment demand at the same level as FY32 and Tablet market expands with Active ES pen technology shipment. Profitability stays at he level of the previous...

  • Page 36
    ... 655 700 90,000 80,000 70,000 60,000 50,000 Change Ratio 33,000 30,277 +6.9% +9.0% 40,000 30,000 20,000 10,000 43,625 50,300 +15.3% 0 FY 03/15 (actual) Brand Product biz All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/16 (forecast) Tech. Solution biz Other biz 36

  • Page 37
    ...,000 15,000 10,000 5,000 0 Creative biz 20,000 34,480 48.0% 17.1% 38.1% 6.0% 5,400 21,981 23,300 FY 03/15 (actual) Creative・Pen tablet Consumer All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/16 (forecast) Creative・Display 37 Creative・Mobile Business Solution

  • Page 38
    Sales Forecast by Product line in Tech. Solution (Unit: Million JPY) 9.0% 33,000 30,277 4,000 3,404 8,542 10,500 Change Ratio 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 FY 03/15 (actual) Pen for Smartphone All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 17.5% 22.9% 0.9% 18,331 18,...

  • Page 39
    ... 50,000 40,000 13,914 7,132 84,000 11,070 Change Ratio 27.2% 6.1% 18.9% 11.6% 9.0% 15,420 14,532 16,550 7,960 30,000 20,000 30,277 10,000 0 FY 03/15 (actual) Comp. All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 33,000 FY 03/16 (forecast) U.S. Germany Asia Oceania...

  • Page 40
    ... for FY 03/16 Dividend policy ï,· ï,· Continue steady dividend payout to shareholders while maintaining a stable financial base necessary for future business development. Target payout ratio maintains approximately 40% or more to attract global investment. Dividend per share ï,· JPY 18.00 per...

  • Page 41
    ... share 20.00 17.50 15.00 12.50 11.25 7.50 7.50 5.00 2.50 10.00 0.00 FY 03/12 All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. FY 03/13 FY 03/14 FY 03/15 FY 03/16 (Forecast) 41

  • Page 42
    our vision All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 42

  • Page 43
    All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. our mission 43

  • Page 44
    our brand All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 44

  • Page 45
    ... and progress in new technologies. Please note that actual results could materially differ from those expressed or implied by the forward-looking statements in this presentation due to these risks and uncertainties. Wacom Co., Ltd. http://www.wacom.com Investor Relations Inquiries TEL: +81-3-5337...