Cover pages

Business Report

April, 2015 to March, 2016

(FY 03/2016)

Wacom Co., Ltd. (TSE Sec.1 6727)

Contents Index

3-4 FY 03/16 Results Overview

5-6 Consolidated P/L, Operating Expenses Comparison

7-8 Consolidated Sales/Profit Comparison

9-10 Business Segment Sales/Profit Comparison

11-18 Business Highlights

19-21 Sales by Product Line

22-24 Sales by Region, Sales Changes for Local Currencies

25-26 Consolidated B/S, C/F

27-29 Review of FY 03/16 Results for the latest forecast

29-31 FY 03/17 Business Strategies

32-40 FY 03/17 Financial Forecast

41-43 Shareholders Return Policy for FY 03/17

44-47 Review of Wacom Strategic Business Plan SBP-2019

48-50 Our Branding

51 Disclaimer

Operating environment

  • The global economy maintained a slow recovery until 3Q. However, the uncertainties for global economy has increased since 4Q, with multiple factors including refugees issues in Europe, decline of U.S. exports, low oil prices, low domestic demand in Japan, and further economic slowdown in emerging countries including China.

  • The Japanese Yen rapidly appreciated against US dollar in February, and remained strong against Euro throughout the year.

  • As cloud computing, mobile products, and SNS rapidly expand, the IT industry faces intensified

    competition and structural changes. Market trends related to our business are changing rapidly.

    Performance overview

  • Consolidated net sales increased, but fell under the latest forecast. Operating income and net profit decreased due to the increase of SG&A such as global IT infrastructure and R&D expenses, and the effect of exchange fluctuations.

  • Sales in Brand Business reached a record high, driven by strong sales of Display products in Creative Business and digital stationery products in Consumer Business, as well as sales expansion in China and other Asian markets.

  • Sales in Technology Solution Business declined. While, the sales of new Active ES pen solution increased by new customers and mass production of educational tablets, the shipment for the new smartphone model was lower than for the previous model and the sales for notebook PCs has declined significantly.

Financial Summary (JPY)

Business Performance

FY 03/16

YOY

Net Sales

77.57 bn

4.0％

Operating Income

3.66 bn

-40.3％

Ordinary Income

3.78 bn

-37.7％

Net Profit aft. Tax

2.31 bn

-33.5％

Financial Indices

FY 03/16

FY 03/15

EPS

14.00 JPY

20.86 JPY

BPS (Book Value per Share)

188 JPY

202 JPY

Average Forex rate

FY 03/16

YOY

1 USD

120.16 JPY

+9.2% (Weak JPY)

1 EUR

132.36 JPY

-4.6% (Strong JPY)

(For reference)

(Note) Net Profit of FY 03/16 is equivalent to net profit attributable to shareholders of Wacom Co., Ltd.

Wacom Co. Ltd. published this content on 11 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 May 2016 15:32:04 UTC.

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