Open up. Sense more.
Annual Report
2017
© 2017 Wacom Co., Ltd. Wacom is a trademark of the Wacom Company, Ltd. All rights reserved. All other company names and product names are trademarks or registeredtrademarks of their respective owners.
Certification Authority : BVCApplied Offices : Head Office, Tokyo BranchISO9001 Certification Number : 3535516ISO14001 Certification Number : 3535518
I am pleased to present Wacom’ s Annual Report for the fiscal year ended March 31, 2017, our 34th fiscal year.
Based on our vision of “A world alive with creativity,” we strive to lead the field of digital expression, ranging from video game design, movie production, industry design and image editing to a new digital stationery for capturing and sharing ideas anywhere. We also aspire to serve the broader realm of human creativity through paperless workflow and security with digital ink and pen technology.
Business results in our 34th fiscal year ended March 31, 2017During our 34th fiscal year, we saw rapid changes and the emergence of new business fields such as IoT and VR/AR along with the penetration of mobile products, cloud computing, and social media in the IT industry.
Under this environment, we have taken the lead in the pen tablet market for creative users by developing next-generation digital pen technology and reinforcing our product lineup.
However, in the Brand Business segment, sales declined due to the strong yen, changes in the competitive environment, a decrease in demand during product life cycle transitions, and the partial delay of a new product launch. In the Technology Solution Business segment, business activities were impacted by the recall of the Samsung Galaxy Note 7 smartphone. Over-all sales declined due to a decrease in shipments for smart-phones and the strong yen although production of the Active ES™ (Active Electrostatic) pen solution increased alongside ex-pansion in the customer base. Under these circumstances, the consolidated net sales for the fiscal year declined compared to the previous fiscal year.
We posted an operating loss mainly due to the sales decrease and the increase in expenses associated with our global IT infrastructure installation. In consideration of our latest growth projections and the difficulty we anticipate in achieving the medium-term growth goals by the fiscal year ending March 2019, we have reviewed the scale and scope of the IT in-frastructure investment plan. In light of this, we have posted ex-
traordinary losses including impairment losses of 4,224 million yen for the period, mainly for the associated portion of software in progress in intangible assets.
As a result, for the fiscal year, consolidated net sales decreased 8.1% to ¥71,314 million, and we recorded an operating loss of ¥1,171 million, an ordinary loss of ¥870 million, and net loss attributable to owners of the parent company of ¥5,534 million.
Business outlook and new initiativesFor our 35th fiscal year ending March 31, 2018, we forecast that the global economy will maintain a trend of modest growth. However, we are also cognizant of concerns that trade protec-tionism, political instability in the EU, and geopolitical risks in the Middle East and Asia may have a negative impact on the global economy, possibly resulting in continued instability in foreign exchange markets. In the IT industry, penetration of mobile products, cloud computing, big data, AI, and social media are expected to lead to the emergence of a new indus-trial platform.
We will respond to these rapid changes, while also taking on new initiatives for future growth.
In the core Creative Business of our Brand Business segment, we will leverage full-year availability of new products launched during the 34th fiscal year. We will build solid relationships with customers and communities and start expanding 3D (VR/AR, CAD, Multimedia, etc.) in the enterprise market. In Consumer Business, we will promote the Bamboo brand in a new category of Digital Stationery by enhancing product lineup targeting a broad range of customers. In Business Solutions, we plan to expand the enterprise sales through increased collaboration with partners by enhancing workflow efficiency and data secu-rity through the use of digital signatures. By developing sales in these ways, we expect to restore sales growth in the Brand Business segment.
In the Technology Solution Business segment, we will drive the adoption of our EMR(Electro Magnetic Resonance) and Active ES pen technologies as the de facto standard in the digital pen market. We will also develop and expand business oppor-
To Our Shareholders
tunities in the education market, as well as contribute to the development of the digital stationery market through collabora-tion with industry partners. In smartphones, Samsung is in transition to its next-generation Samsung Galaxy Note model, and we estimate weaker sales due to the absence of shipments of existing models. Based on the above, we expect that sales in the Technology Solution Business segment will remain at the same level as the previous year.
In Corporate Functions, we aim to recover profitability through optimization of our global organization and cost structure. Moreover, we established the Digital Stationery Consortium, Inc. in September 2016 to promote WILL (Wacom Ink Layer Language) as a digital ink standard regardless of OS and expand the digital stationery market.
Based on our outlook and initiatives for the 35th fiscal year, we expect ¥76,800 million in consolidated net sales, ¥1,800 million in operating profit, ¥1,740 million in ordinary profit, and ¥1,130 million in net profit attributable to shareholders. The assumed average foreign exchange rates are ¥110 per USD and ¥118 per euro.
Medium-Term Business PlanIn April 2015, we announced the Strategic Business Plan “SBP-2019” reflecting changes in IT market trends, our business envi-ronment, and our global business model. However, our results in the fiscal year have been well below the growth targets for sales and profits set out in our Strategic Business Plan.
Under these circumstances, we have resolved to shift our focus to profitability by prioritizing specific business strategies in line with our business resources, establish a cost structure that is better aligned with revised medium-term sales growth, and build a more robust organizational structure to improve the quality of management decision-making in the context of a changing business environment.
With this background, to ensure the medium-term growth
21
Masahiko YamadaPresident & CEO
Our Vision
of corporate value, we aim to restore profitability through groupwide measures to optimize productivity and ensure cost structure improvements, as well as by addressing corporate challenges.We aim to build a foundation for sustainable growth by leading the market for advanced digital pen and ink technology. In order to further evolve our business model in growing markets such as IoT, AR, VR, 3D printing, AI, and security, we will form a new management team and develop new growth strategies. Dividend policyOur dividend policy is to ensure appropriate returns to investors while maintaining a solid financial foundation for growth.
For the fiscal year ended March 31, 2017, we paid a dividend of ¥6.0 per share. In the medium term, we plan to maintain a payout ratio of at least 40%.
Intuitive user interface for human creativityIn a world connected by digital technology, intuitive user inter-face solutions have become a driver for human creativity. We will strive to further increase our corporate value and manage-ment clarity as a global company.
Your support and understanding remain an essential factor in our success. On behalf of Wacom teams worldwide, please allow me to express my sincere appreciation for your continued support.
In September 2016, the Digital Stationery Consortium, Inc. was established to foster growth of the digital stationery market and promote widespread adoption of WILL™ digital ink technology. Traditional pens are a central part of every-day life, and combining them with the power of digital tech-nology makes it easier to be creative and improve work and study efficiency. Wacom strives to further develop the digital stationery market in collaboration with business partners and through an open ecosystem, making best use of WILL™.
43
Wacom Now
A diverse new product line-up addressing thedemanding needs of creative users
A consortium to promote WILL™ andfoster growth of the digital stationerymarket
Various types of Chrome OS-based tablet devices have been launched amid a growing education market. Lenovo’s YogaBook uses Wacom pen technology to immediately convert user drawings on paper into digital representations on screen. Montblanc’s digital stationery device Augmented Paper also allows digital handwriting and drawings to be quickly captured on mobile devices. All of these devices have adopted Wacom’s proprietary EMR technology. Wacom’s another digital pen solution, Wacom Active ES, has also seen increased shipments, being adopted by global IT players around the world such as Toshiba, HP, Dell and Huawei.
As tablet devices for education see increasingdemand, Wacom leads the industry with total digitalpen solutions
Expanding smart digital stationeryproducts to share ideas seamlessly anddigitally
Wacom’s unique digital stationery Bamboo Smartpad comes in Slate and Folio types, both of which are offered in A4 and A5 sizes. Notes and ideas handwritten on normal paper using the supplied ballpoint pen are immediately digi-tized, and can be edited, shared on the cloud, and even converted into text or sorted out using the dedicated app.
We have taken on the task of strengthening our product offerings for pro-fessional creatives. The new generation Wacom Pro Pen 2 with markedly enhanced performance was adopted for Wacom® Cintiq Pro creative dis-plays and Wacom® MobileStudio Pro with Windows OS. The Wacom® Intuos Pro also adopted the Wacom Pro Pen 2 and its Paper Edition enables users to seamlessly bridge analog-based sketching on paper and digital-based finishing process on a PC.
Wacom also hosted community events across the globe which attracted creative users to try out new products . We gained a wealth of valuable feedback and opinions from guests, making the events even more mean-ingful for both Wacom and the creative community.
In the Brand Business, we have revamped offerings for
creative professionals by launching products featuring the
next-generation digital pen and 4K liquid crystal displays,
changes which contributed to sales in the second half of the
previous year. The new digital stationery products for general
consumers have been well received, with notable exposure on television
and in printed media. In the Technology Solutions Business, EMR® digital pen
technology expanded its base in the education market and Active ES technology
increased in shipment of tablet devices.
Our Mission
Wacom® MobileStudio Pro
MontblancAugmented Paper
Connected Ink (Las Vegas, USA)
Bamboo SlateSAMSUNG
Chromebook Plus
Lenovo YOGA BOOK
Wacom® Intuos Pro
Wacom® Cintiq Pro
65
Wacom People & EventsIn fiscal year 2016, Wacom exhibited at major events in the world and promoted
Wacom brand awareness, leading to market expansion.
In addition, Wacom people enthusiastically engaged in our global operations
utilizing their personality and faculty.
In May 2016, Wacom exhibited atCES Asia 2016 to spread Wacombrand and promote digital ink.
Wacom held Connected Ink events inShanghai (May, 2016),Berlin (September, 2016),Tokyo (October, 2016) andLas Vegas (January, 2017),to establish a digital ink standard andpromote the spread of digital stationery.
Wacom exhibited new mobile product“Wacom MobileStudio Pro” atNew York Comic Con for creatorsheld in October 2016 in New York.
Wacom young engineers madepresentations of their research anddevelopment theme for the future ofWacom at company technological event.
Wacom hosted “Inkathon” events of WILL™enabled apps development competition,and promoted digital ink.
Wacom demonstrated new system for embeddingbrainwave data into digital Ink, and digital inkconcept of taking hand-drawn images from paper to3D digital ink onto VR, at “South × Southwest”interactive event held in March 2017 in Austin, USA.
In September 2016, Wacom exhibited and introduceda new digital stationery products at IFA 2016(consumer electronics show) held in Berlin, Germany.
Wacom hosted pen tablet new product “Wacom Intuos Pro”launch events in Germany, USA and Japan.We demonstrated new evolving features and technology forprofessional creators and media.
87
Brand Business
Formats and technology in professional digital imaging are constantly changing – from HD to 4K and 2D to 3D and beyond with Virtual Reality (VR). To address the inherent needs associated with this, Wacom has been launching new products with Wacom® Cintiq Pro and Wacom® MobileStudio lines, utilizing the next-generation digital pen with four times more pressure sensitivity (8,192 levels) and enhanced responsiveness. The Wacom® Intuos Pro also comes with the next-generation digital pen and the Intuos 3D was newly added to complement the pen tablet’s entry line.
Creative Business
Cintiq 27QHD touch
Intuos Intuos 3D
Business Lines
Wacom is developing, manufacturing, and marketing user interface solutions
with a view to meeting creative demands in multiple fields.
Under the global organization, we organized 6 Business Units by category of users.
This flexible global organization is designed for future business growth by
addressing different market demands in a more orderly and responsive manner.
The Brand Business segment covers Wacom-branded hardware and software products and solutions, and consists of three business categories based on customer needs and business characteristics: high-end graphics; digital stationery products for casual creative activities in everyday life; and electronic document workflow to ensure efficiency and high-level security.
Wacom Cintiq Pro Wacom MobileStudio Pro
Wacom Intuos Pro
CORPORATE STRATEGY DRIVER
BUSINESS DRIVERS
Business Units
Enabling Functions
CORPORATE FUNCTIONS
Basic Framework of Global Organization Global Business Units (BU)
Engineering solution ・ECAD seriesOther Business
Brand
Business
Consumer Business
・Makes daily lives more creative andenjoyable・Digital Stationery, Bamboo Folio,
Bamboo Slate, Bamboo Stylus
Business Solution
・Serves society by providing innovativesolutions・STU (Signature Tablet),
DT (Display Tablet) series, etc.
Technology Solution Business
・UI technology solutions for mobile systems
・EMR, AES Components & modules (feelTM)
CreativeBusiness
ConsumerBusiness
BusinessSolution
EngineeringSolution
Platforms &Applications
TechnologySolution
MarketingCenter
DesignCenter
Engineering& QA
Operations
Technology Development, Legal, IP, Internal Audit,Accounting, Treasury, HR, Corporate Communication,
Corporate Administration, Investor Relations, etc.
Platforms &
Applications
・Providestechnology,apps andplatforms・WILL,
Wacom Cloud,Bamboo Paper,sign pro PDF,etc.
Creative Business
・Serves the passion of professionaland consumer creativity・Wacom Intuos Pro, Intuos,
Wacom MobileStudio Pro,Wacom Cintiq Pro
Consumer Business
Technology Solution
We offer digital stationery solutions under the Wacom brand with Bamboo Smartpads which digitize handwritten ideas, and various types of styli for mobile products. The Wacom Cloud service offers unique digital ink experiences which enable users to capture, edit, send and share digitized ideas via smartphones and tablets. The age of digital stationery is coming our way.
9
The evolution of computers and network infrastructure has advanced paperless operations, accelerating the digitization of documents in numerous fields. Digitization paves the way for a wide range of applications, including corporate document management, product demonstra-tion and credit card signing in stores, contract signing at banks, and electronic chart notation in clinics and hotel check-in kiosks. High-level security is indispensable to the appropriate management of digitized documents. Wacom’ s LCD signature tablets play a key role in con-necting customers and computer systems in different business situations. With the Tokyo Olympics and Para-lympics taking place in 2020, demand from hotels is rising. As electronic commerce spreads further and edu-cation infrastructure goes digital, we believe there is huge potential in this business.
We supply our digital pen (EMR® and Active ES™ technologies) and multi-touch solutions to our OEM customers, powering various mobile products running on Android, Windows or Chrome operating systems such as smartphones, tablets, PCs and eBooks, as well as digital stationery and music score devices.
Digital pens are playing increasingly significant roles beyond just operating smartphones and tablets. They are now used to create and manipulate con-tent on mobile devices. Wacom is taking the lead in collaborations with industry partners by providing its extensive expertise in a wide variety of pen and touch technology solutions. Wacom also advocates the Universal Pen Framework initiative to ensure wider digital pen interoperability and has started to supply pen cartridges which enable stationery manufacturers to tap into the digital stationery trend. Steadtler, the traditional German statio-nery brand, was the first to adopt the pen cartridge by Wacom.
ECAD is a series of computer-aided design (CAD) applications used in factory automation, mechatronics, robotics and industry equipment. ECAD leverages Wacom’s 30 years of expertise to support thousands of industry customers in solving their critical design challenges from the design and development stage through to production.
Business Solution
Engineering Solution
Other Business
Technology Solution Business
Wacom established the Digital Stationery Consortium, Inc., to promote the evo-lution of the digital stationery market in collaboration with partners, and is pro-viding customers with value that transcends hardware through unique apps and services leveraging WILL™ (Wacom Ink Layer Language), the technology derived from its long-standing expertise in digital ink.
Platforms & Applications
STU-540
Wacom® feel IT technologiesis Wacom’s unique user interface solution to
realize handwritten input with digital pen through
a natural, intuitive multi-touch operation.
DTU-1141
10
Bamboo Slate Bamboo Stylus
DTK-1651
Bamboo Folio
ECAD DCX
SteadtlerNoris digital for Samsung
Lenovo ThinkPad P40 Yoga
Europe Asia/Oceania JapanAmericas
12
Our Global Operations
The figures of sales in theTechnology Solution Business
are shown in () as a part ofSales in Japan.
(EMEA)(North and Latin America)
Americas19.0%
Japan47.6%
Europe18.3%
Asia/Oceania15.1%
14,5
32
104,7
91
(1,000EURO)
14,8
45
112,1
54
(1,000EURO)
13,0
53
109,3
49
(1,000EURO)
(288,01
5)
(1,000CNY) (32
3,97
6)
(1,000CNY)
8,70
2
11,2
04
10,8
05
(3,79
9)
(5,43
8) (5,24
8)13,91
4
126,4
57
(1,000USD)15
,631
130,0
88
(1,000USD)13
,520
123,
999
(1,000USD)
(Technology Solution Business37.5%)
11
What is your team’s role andhow is it organized to fulfill your mission?The Platforms & Applications (P&A) BU’ s mission is to build Wacom’ s ecosystem for digital ink, leveraging WILL™ (Wacom Ink Layer Language) and connecting the ecosystem with partners’ activities. To facilitate this effort, we have been hosting events l ike Connected Ink to promote development of the digital stationery market and Inkathon (Ink + Hackathon), an app development competition. We also collaborated with partners to establish the Digital Stationery Consortium, Inc., for which Wacom serves as a board member. Our goal is to offer our custom-ers unique value propositions based on hardware, software and services.
What is unique about your team’ s activities, and what challenges do you face?Strong customer relationships and interactions are key to delivering customer-centric products and services. All of this is based on our hardware, software and services in combina-tion with our partners which are coming from corporate en-vironments, start-up organizations, and developer communi-ties.
Faik KaraogluSenior Vice President
Platforms & Applications BU
Wacom Global
What is your team motto and how would youcharacterize your working style?Our motto is certainly: “customer first” and “connecting the dots for an E2E (End-to-End) customer experience.” I would describe our working style as agile, pragmatic and execution-oriented.
How do you manage your team and partners?The P&A team and our par tners are par t of the same ecosystem. Our principles are trust, respect and passion for customers with the goal of growing and learning together. Delivering the best results is a key driver for our team.
What does the word “innovation” mean to you?I would define innovation as thinking out of the box with no limitations, and characterize it as a daily motivator in my job. Innovation is the result of bringing together creativity and the best people in the business. Valuable ideas are coming from within and outside of Wacom. The perfect mix of Wacom’ s own technology and interaction with partners will be ex-tremely important. Customers, in particular, are an important source of our innovation. In order to keep the innovation going (both internally and with external collaborators ) , we established the Wacom Inno-vation Hub in May 2017.
37,409
(30,277)
35,888
(27,97
4)
33,936
(26,75
8)
The total sales of subsidiaries in Asia/Oceania.The figures of sales in China are shown in () as
a part of sales in Asia/Oceania.
(214,1
26)
(1,000CNY)
Inkathon 2016 (Israel)
Net Sales byBusiness
¥71,314 million
TechnologySolution Business26,75837.5%
Brand Business43,874
61.5%
Others6821.0%
Since its foundation, Wacom has extended its global operations to Germany and the United States, followed by China,
Korea, Australia, Hong Kong, Singapore, Taiwan, and India. Wacom’ s mission is to digitize everything now done in
pen and ink, and our ability to facilitate and support this movement with useful apps and services is key to its success.
In this column, we would like to introduce Faik Karaoglu, Senior Vice President for Platforms & Applications BU.
Net Sales bySubsidiaries
Net Sales by Subsidiaries
Unit : Millions of yen
Unit : Thousands of USD
Unit : Thousands of EURO
Unit : Thousands of CNY
Executive Vice PresidentYuichi Inada (Engineering & QA)Robert Marlinghaus (HR)Tom Lam (China operation)
Board of Directors(From the left)Wataru Toyoda (Outside Director, Audit Committee Member)Takashi Kamura (Outside Director, Audit Committee Member)Yukio Usuda (EVP, Corporate Strategy)Toru Ando (EVP, CFO)Shigeki Komiyama (EVP, Business Solution BU and Engineering Solution BU)Masahiko Yamada (President & CEO)Nobutaka Ide (EVP, Technology Solution BU and Platforms & Applications BU)Sadao Yamamoto (CTO)Yasuyuki Fujishima (Outside Director)Haruo Mizuno (Outside Director, Audit Committee Member)
Our Team The Board of Directors Biographies
MasahikoYamada
March 31,1958
3,768,000
ShigekiKomiyama
March 28,1959
12,800
April, 1986June, 1996
April, 1999June, 2003April, 2004June, 2004April, 2015
March, 2004
June, 2005
April, 2010
April, 2015
SadaoYamamoto
April 13,1961
752,000
March, 1987April, 1998June, 1999June, 2004April, 2015
ToruAndo
November 12,1965
-
August, 2005
November, 2010September, 2011
June, 2012
July, 2015 August,2015
June, 2016
NobutakaIde
May 19,1970
-
April, 1995August, 2013
April, 2015July, 2015
April, 2017
June, 2017
YukioUsuda
December 8,1968
12,000
April, 1991July, 2004
January, 2005April, 2009
April, 2015April, 2017June, 2017
YasuyukiFujishima
March 25,1947
100,000
July, 1969
July, 1997
July, 1998
August, 2001
June, 2002
November, 2002
April, 2003
April, 2004
October, 2005
April, 2008April, 2010
August, 2010
June, 2016
WataruToyoda
March 4,1952
-
April, 1976
February, 1981April, 1997
November, 1998June, 2000
December, 2001
June, 2004September, 2009
June, 2012
June, 2017
13 14
The Board of Directors and Executive Vice Presidents /Corporate Governance as of June 24, 2017
AuditAssessment
Election/dismissal
Executive Committee
Report
Report
NoticeBusiness Unit Entity
Group CEO
Compliance and Risk Committee
Internal Audit
Human Resource Committee
Policy Process andControls Committee
Report
Wacom Speak-up Line
Notice
Election/dismissal Election/dismissal
Cooperation
Cooperation
Accounting Audit
Dismissal AccountingAuditors
Corporate GovernanceWacom made the transition to a “Company with an Audit Commit-tee” in June, 2015. The new Board of Directors comprises ten directors, three of whom are Audit Committee members. The Board of Directors meetings are held once a month to make prompt, appropriate decisions regarding overall management, including reviewing management policies, examining the progress of business operations, and general busi-ness management and supervision.Our group Chief Executive Officer (CEO) has been appointed as President of the Board and new Executive Vice Presidents (EVP) have been introduced to ensure the smooth running of our business in response to changes in the business environment. The group CEO and EVPs attend Executive Committee meetings once a month to pragmatically review the progress of business plans and indi-vidual issues and take measures where necessary. In addition to Board meetings, Audit Committee members attend other important meetings to monitor the business execution of directors. The Audit Committee also sets the audit plan and policy for the fiscal year, which is discussed with the group CEO. To ensure a highly transparent and fair management system, we have defined the term of office of non-Audit Committee directors to one year, and further clarified their management responsibilities to shareholders.
Note: Wacom made the transition to a Company with an Audit Committee in accordance with the resolution on changes to the Articles of Incorporation at the Ordinary Shareholders’ Meeting on June 26, 2015. Mr. Yasuyuki Fujishima, Mr. Wataru Toyoda, Mr. Haruo Mizuho, and Mr. Takashi Kamura are independent outside directors. The term of office of Audit Committee members is two years from the Ordinary Shareholders’ Meeting on June 23, 2017.
Execution of Operations, Audit, and Internal Control Systems as of June 24, 2017
Joined Wacom Co., Ltd.Director, Division Manager of Electronic Systems and Devices (ESD)Executive Director, Division Manager of ESDExecutive Director, Senior Executive OfficerExecutive Vice President, Chief Operating OfficerPresident & CEOPresident & group CEO (current position)
Entered the Ministry of International Trade and IndustryJoined the Policy Board of the Bank of Japan and served as a delegate of the Economic Planning AgencyEntered the Ministry of Foreign Affairs as Ambassador of the Republic of PanamaJoined Nissho Iwai Corporation (currently Sojitz Corporation) as AdvisorManaging Executive Officer, Nissho Iwai CorporationJoined Wacom Co., Ltd. as Outside Director (current position)Senior Managing Executive Officer, Nissho Iwai CorporationSenior Managing Executive Officer, Sojitz CorporationRepresentative Director and Senior Managing Executive Officer, Sojitz CorporationExecutive Vice President, Sojitz CorporationAdvisor at Sojitz CorporationPresident & CEO, Mutual Service Aid Guarantee Corporation (current position)Outside Director, Nippon Kayaku Co., Ltd (current position)
Entered National Tax Administration AgencyFinance Officer and Investigator, Tokyo Regional Taxation BureauJoined AIU Insurance Company, Ltd.Joined Oracle Corporation JapanGeneral Manager, Accounting DepartmentJoined Gateway Japan, Inc., ControllerCFO, CYBIRD Co., Ltd.CFO, Administrative Management Division,SAS Institute Japan Ltd.President, Nido Co., Ltd.CFO, Neusoft Japan Co. Ltd.Audit and Supervisory Board Member, JustSystems Corporation Outside Director (Audit Committee Member) , Wacom Co., Ltd. (current position)
HaruoMizuno
October 16,1943
15,000
April, 1967
April, 1989July, 1999July, 2002
June, 2004 June, 2015
Joined Nippon Remington Univac Kaisha, Ltd. (currently Nihon Unisys, Ltd.)General Manager of Documentation Division DirectorCounselorStatutory Auditor, Wacom Co., Ltd. Outside Director (Audit Committee Member) (current position)
April, 1975April, 1977April, 1985
April, 2000June, 2002June, 2015
Appointed as a legal apprenticeAppointed as a judgeRegistered as an attorney-at-lawEstablished Kamura Law Office (currently Urbantry Law Office) Lecturer at the Graduate School at Meiji University Joined Wacom Co., Ltd. as Outside AuditorOutside Director (Audit Committee Member) (current position)
Joined Wacom Co., Ltd. as Executive Officer of Global Marketing and SalesExecutive Director, Executive Officer of Global Marketing and SalesExecutive Director, Executive Officer of Asia-Pacific Region Executive Director, EVP, Business Solution Business Unit and Engineering Solution Business Unit (current position)
Joined Wacom Co., Ltd.General Manager of Basic Development of ESDExecutive DirectorExecutive Director, Chief R&D OfficerExecutive Director, Chief Technology Officer(current position)
CFO, GE Mortgage Insurance Corporation, Japan Branch CFO, Allianz Fire & Marine Insurance Japan Ltd. Director & CFO, Allianz Fire & Marine Insurance Japan Corporate Officer & CFO, AIU Insurance, Japan Branch Joined Wacom Co., Ltd. EVP & CFO Executive Director, EVP & CFO (current position)
Joined Sharp CorporationJoined Wacom Co., Ltd.General Manager, Technology MarketingDepartment, Component Business UnitVice President, Technology Solution Business UnitSenior Vice President, Technology Solution Business UnitEVP, Technology Solution Business Unit and Platforms & Applications Business Unit (current position)Executive Director (current position)
Joined Toshiba CorporationJoined Matsushita Toshiba Picture Display Co., Ltd.Joined Wacom Co., Ltd.General Manager, Global Marketing and Sales Division, Business Administration OfficeVice President, CEO OfficeEVP, Corporate Strategy (current position)Executive Director (current position)
TakashiKamura
November 16,1950
-
Name / Date of birth / Number of Shares Owned as of June 24, 2017 / Brief of Biography
Employee
NominatingCommittee
5 Directors(including 4
OutsideDirectors)
AuditCommittee
3 members(including3 Outside Directors)
Board ofDirectors10members(including 4
OutsideDirectors)
Ordinary Shareholders’ Meeting
Recommendation
1615
Financial Section Five-Year Summary
For the fiscal year:Net salesGross profitOperating profitProfit before profit taxes Net profitComprehensive profit
At fiscal year-end:Cash and depositsTotal assetsTotal net assets
Net profit per share:BasicDiluted
Equity ratio(%)Return on equity (%)The number of employee(person)
$635,654245,706-10,439-50,725-49,331-53,740
$126,615 447,897190,364
-$0.30ー
Thousands ofU.S. dollars
Year endedMarch 31
2017
¥61,068,07824,235,314
7,915,0517,545,8054,770,4855,870,100
¥21,596,42950,124,19329,211,533
¥29.8129.69
58.119.9930
¥78,615,30929,931,1038,663,0928,268,6455,248,7626,799,072
¥15,393,93950,859,15732,799,328
¥31.3131.13
64.217.0
1,035
¥77,568,01430,735,9853,664,3623,597,4892,309,5141,437,540
¥14,365,03151,566,63231,096,396
¥14.0013.99
60.07.1
1,055
¥71,313,98727,565,770-1,171,194
-5,690,859-5,534,484-6,029,066
¥14,204,92850,249,58321,356,897
-¥33.93ー
42.2-21.21,099
Thousands of yen
Years ended March 31
2013 2015 2017
¥74,557,46030,050,300
6,142,6695,106,6953,473,1443,821,345
¥16,686,61951,456,85733,858,970
¥20.8620.82
65.410.5
1,072
20162014
Note 1: The translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of the readers outside Japan and has been calculated at the rate of JPY 112.19 = U.S. dollar 1.00, the approximate rate of exchange on March 31, 2017.
Note 2: Net profit from 2016. 3 F. Y. is equivalent to Net profit Attributable to Owners of Parent.Note 3: The Company resolved a 400-for-1 share split on April 30, 2013 and implemented the split effective as of June 1, 2013. Net profit per share and diluted net profit per
share have been calculated assuming that the stock split was conducted at the beginning of the year ended March 31, 2013.
24,235
(Millions of yen)
’13
(Millions of yen) (Millions of yen)
’13
(%) (%)
5
10
15
(For the years ended March 31) (For the years ended March 31) (For the years ended March 31)
Net sales Operating profit/Operating profit marginGross profit/Gross profit margin
’13 ’14
61,068
’14
78,615
’15
74,557
’16
77,568
’17
71,314
39.7
29,931
’14
30,050
’15
40.3
30,736
’16
27,566
’17
39.638.7
13.0
11.0
Wacom Co., Ltd. and its subsidiaries
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,0008,663
’15
8.2
6,143
’16
3,664
’17-1.6
-1,171
7,915
0
10,000
20,000
30,000
5,000
15,000
25,000
35,000
30
40
50
35
45
38.1
Overview of Business Performance
How did the business environmenteffect our performance for the fiscalyear ended March, 2017?
Wacom Co., Ltd. And Its Subsidiaries
In the current fiscal year (from April 1, 2016 to March 31, 2017), we have seen rapid changes in the business environment surrounding the Wacom Group including developments leading to the emergence of new business fields such as IoT and VR with the penetration of mobile products, cloud computing, and SNS (Social Networking Services) in the IT industry. The yen strengthen rapidly against the dollar and the euro, and even more so against emerging currencies such as the renminbi, due to a trend of global risk aversion originating from the UK’ s decision to leave the EU in the foreign exchange market.Against this background, Wacom Group has taken the lead in the pen tablet market for creative users by pursuing investment strategies to provide more value-added products to customers, develop next-generation digital pen technology, reinforce our product lineup, and enhance the Group’s future business foundation.In the Brand Business segment, to cater to the changing demands of creative professionals and to solidify our global market leadership, we developed and launched new products equipped with next-generation digital pen technology and the advanced functions of 3D and color man-agement. However, consolidated net sales declined in all product lineups due to the strong yen, changes in the competitive environment, a decrease in demand during product life cycle transitions, and the partial delay of a new product launch.In the Technology Solution Business segment, business activities were heavily impacted due to the recall of the Samsung Galaxy Note 7 in Octo-ber, an event resulting from quality control issues. Aside from this, we increased commercial production of our Active-ES pen sensor system to expand our customer base from existing customers to include new customers. Under these circumstance, overall sales for the fiscal year declined, mainly due to a decrease in sales for smartphones and the strong yen.For the past few years, we made a significant capital investment in our global IT infrastructure, and implemented them in order. Corporate expenses significantly exceeded the previous fiscal year, mainly due to an increase in expenses related to depreciation of intangible assets and subcontractor activities for system installation. However, we have since realized that achieving the sales growth set as an initial assumption will be difficult, and have reviewed the scale and scope of the investment plan in consideration of our latest growth projection. We have posted as extraordinary losses for the period impairment losses of 4,224 million yen mainly for the associated portion of software in progress in intangible assets.As a result, consolidated net sales decreased 8.1% to ¥71,314 million, operating loss increased by ¥4,835 million to ¥1,171 million, ordinary loss increased by ¥4,647 million to ¥870 million, and net loss attributable to owners of parent increased by ¥7,844 million to ¥5,534 million.
30
40
50
60
70
80
(Yen)
(For the years ended March 31)
Net profit per share (basic)
ROE/ROA
Equity ratio
’13
29.81
’14
31.31
’15 ’16
20.86
14.00
’17
-33.93
58.1
(ROE)
(ROA)
19.9
17.9
(%)
(For the years ended March 31)
’13 ’14 ’15
(%)
(For the years ended March 31)
’13
64.2
’14
65.4
’15
60.0
’16
42.2
’17
11.9
10.5
’16
7.3
7.1
’17
-1.7
-21.2
17.0
16.4
-2,000
0
2,000
4,000
6,000
8,000
10,000
-3
0
4.7
-30
-20
-10
0
10
20
30
-20
-15
-10
-5
0
5
10
15
20
1817
Our results by business segmentBrand BusinessIn Creative Business, we launched a new pen tablet model equipped with next-generation digital pen technology for professional creative users to reinforce product competitiveness in January. A new model for 3D modeling, which was launched in September to acquire a new customer constituency, positively contributed to sales. Shipments of our emerging market model increased approximately 40% on a unit basis, and contributed to the expan-sion of a base market of new customers. However, Overall sales for pen tablet products declined due to constraints in parts procurement caused by Kuma-moto earthquake and the strong yen. In mobile products, we introduced a new model, which built a strong reputation among customers and contributed to sales recovery toward the end of the fiscal year. Overall sales fell slightly due to changes in the competitive environment and the impact of product life cycle transitions in the first half of the fiscal year. Overall sales for display products declined due to the strong yen, sluggish sales in the U.S. and the delay of launching a new 16-inch product into April of the next fiscal year.In Consumer Business, we introduced new smart pad models as the next-generation digital stationery to recover sales. However, overall sales fell significantly due to sluggish sales of stylus pen products for the iPad.In Business Solution, overall Business Solution sales fell significantly due to changes in the competitive environment in Europe, prolonged investment projects and the strong yen.
As a result, overall sales of the Brand Business segment decreased by 10.3% to ¥43,874 million and operating profit decreased 29.3% to ¥5,685 million.
Technology Solution BusinessIn pen sensor systems for smartphones, overall sales declined largely due to the strong yen and the discontinuance of production of the Samsung Galaxy Note 7 due to quality control issues. In pen sensor systems for tablets, adop-tion of our Active-ES pen sensor system expanded, as it gained a good repu-tation and enjoyed favorable demand from tablet PC manufacturers. Overall sales for tablets significantly exceeded the previous fiscal year, owing to steady shipments to Lenovo, Hewlett Packard, Toshiba, and Dell. We also expanded to a new field of EMR products such as pens tailored for use with the Google Chromebook. In pen sensor systems for notebook PCs, overall sales decreased significantly due to a shift from notebook PCs to tablets.
As a result, overall sales in the Technology Solution Business segment decreased 4.3% to ¥26,758 million, and operating profit decreased 21.9% to ¥2,443 million.
Other Business (Engineering Solution)Engineering Solution Business sales grew slightly owing to the launch of the new ECAD DCX 2017 in September. We revised the existing definition of product life cycle, leading to an increase in cost of sales in accounting.
As a result, overall sales in the Other Business segment increased 3.0% to ¥682 million, and the operating loss increased by ¥68 million to ¥32 million.
48,931
43,874’17
’16
(For the years ended March 31)
(For the years ended March 31)
(Millions of yen)
(For the years ended March 31)
(Millions of yen)
Sales
Operatingprofit
Brand BusinessDOWN 10.3%
DOWN 29.3%
5,685’17
8,036’16
Operatingprofit
Operatingprofit
2,443
3,130
26,758’17
27,974’16Sales
Technology Solution BusinessDOWN 4.3%
DOWN 21.9%
682’17
663Sales
Other BusinessUP 3.0%
-
-32’17
36’16
(For the years ended March 31)
(Millions of yen)Net Sales by Business
Technology Solution Business 37.5%
Brand Business 61.5%
Other Business 1.0%
2017¥71,314
Technology Solution Business 36.1%
Brand Business 63.1%
Other Business 0.8%
2016¥77,568
Consolidated financial position
(For the years ended March 31)
0
Cash Dividends per Share / Payout RaitoCash Dividends per share(yen)Pay out Raito(%)
10
5
’13 ’14
(Millions of yen)
(Millions of yen)
(For the years ended March 31)
(For the years ended March 31)
(For the years ended March 31)
Cash flows from operating activities
Cash flows from investing activities
(Millions of yen)
Cash flows from financing activities
-1,611
’13
-4,416
-3,278
’14 ’15
-4,878
-3,480
’16 ’17
’15
’15
5,895
’13
4,337
’14
Assets, Liabilities, and Net AssetsTotal assets as of March 31, 2017 decreased by ¥1,317 million to ¥50,250 million compared to the end of the previous fiscal year. The main factors contributing to this were an increase of ¥1,422 million in merchandise and finished goods, an increase of ¥1,236 million in deferred tax assets, an increase of ¥899 million in software, and a decrease of ¥4,718 million in other of intangible assets.Total liabilities as of March 31, 2017 increased by ¥8,422 million to ¥28,893 million compared to the end of the previous fiscal year. The main factors contributing to this were an increase of ¥8,000 million in long-term loans payable, an increase of ¥1,379 million in notes and accounts payable-trade, and a decrease of ¥1,000 million in short-term loans pay-able.Total net assets decreased by ¥9,739 million to ¥21,357 million compared to the end of the previous fiscal year. The main factors contributing to this were ¥5,535 million in loss attributable to owners of parent, ¥2,961 million in the payment of shareholder dividends, and a decrease of ¥1,414 million in capital surplus mainly due to purchase of treasury stock.As a result, the capital ratio decreased by 17.8 points to 42.2% compared to the end of the previous fiscal year.
Cash FlowConsolidated cash and cash equivalents as of March 31, 2017 totaled ¥14,205 million, a ¥160 million decrease from the end of the previous fiscal year. (A ¥2,322 million decrease over the same previous fiscal period)Cash flow from operating activities for the fiscal year ended March 31, 2017, was ¥122 million (compared to ¥2,009 million gained in the previous comparable fiscal period). The main factors contributing to cash inflow were depreciation by ¥2,573 million, impairment loss by ¥4,224 million, and an increase of notes and accounts payable-trade by ¥1,494 million, and others, net by ¥1,002. The main factors contributing to cash outflow were loss before income taxes by ¥5,691 million, an increase in notes and accounts receivable – trade by ¥1,471 million, and an increase in invento-ries by ¥1,791 million.Cash flow from investing activities for the fiscal year ended March 31, 2017, was ¥3,480 million (compared to ¥4,878 million used in the previous comparable fiscal period). The main contributing factors were purchase of property, plant and equipment by ¥1,400 million, and purchase of soft-ware for the global IT infrastructure investment by ¥2,567 million.Cash flow from financing activities during for the fiscal year ended March 31, 2017, was ¥3,299 million (compared to ¥1,209 million gained in the previous comparable fiscal period). The main contributing factors were an outflow of ¥1,000 million in short-term loans payable, an inflow of ¥8,000 in long-term loans payable, payment of ¥753 million for the purchase of treasury shares, and payment of 2,958 million for shareholder dividends.
’13
734
6,782
’14 ’15
2,009
’16
122
’17
0
-1,000
-2,000
-3,000
-4,000
-5,000
-4,000-3,000-2,000-1,000
01,0002,0003,0004,0005,000
-3,255 -2,850
’16
1,209
’17
3,299
37.7
11.25
15
2017.50 18.0
86.3
55.9
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
’16 ’17
18.0
6.0
128.6
60
90
120
150
’17
’16
’16
2019
Current assets -Cash and deposits Notes and accounts receivable-trade Merchandise and finished goods Work in process Raw materials and supplies Deferred tax assets OthersAllowance for doubtful accounts
Total current assets
Noncurrent assets - Property, plant and equipment:
Buildings and structuresAccumulated depreciationBuildings and structures, netMachinery, equipment and vehiclesAccumulated depreciationMachinery, equipment and vehicles, netTools, furniture and fixturesAccumulated depreciationTools, furniture and fixtures, netLand
Total property, plant and equipmentIntangible assets:
Software Others
Total intangible assetsInvestments and other assets:
Investment securities Deferred tax assetsOthersAllowance for doubtful accounts
Total investments and other assetsTotal noncurrent assets
Total assets
Wacom Co., Ltd. and its subsidiaries
Consolidated Balance Sheet
Assets:
¥14,365,031 10,161,958 8,229,212
270,483 1,598,066 1,458,666 1,894,900
(104,672)37,873,644
3,558,171 (1,785,737)1,772,434 1,064,058
(467,822)596,236
4,391,719 (3,404,725)
986,994 1,182,748 4,538,412
2,884,895 5,246,477 8,131,372
241,167 90,677
769,109 (77,749)
1,023,204 13,692,988
¥51,566,632
$126,615 95,984 86,021
2,320 15,630 3,905
22,636 (1,032)
352,080
27,173 (14,239)12,933
7,161 (3,465)3,696
45,102 (32,849)12,253
9,476 38,358
33,730 4,712
38,442
1,057 11,822 6,819 (681)
19,018 95,817
$447,897
March 31 March 31
Thousands of yenThousands ofU.S. dollars
2017 20172016
¥14,204,928 10,768,466 9,650,738
260,308 1,753,480
438,129 2,539,516
(115,726)39,499,839
3,048,523 (1,597,518)1,451,005
803,404 (388,755)414,649
5,059,977 (3,685,335)1,374,642 1,063,061 4,303,357
3,784,123 528,673
4,312,796
118,579 1,326,355
765,043 (76,386)
2,133,591 10,749,744
¥50,249,583
Liabilities:Current liabilities -
Notes and accounts payable-trade Accrued expensesShort-term loans payableIncome taxes payableProvision for bonuses Provision for directors' and statutory corporate auditors' bonuses Others
Total current liabilities
Noncurrent liabilities -Long-term loans payableDeferred tax liabilitiesNet defined benefit liabilityProvision for bonusesProvision for directors' and statutory corporate auditors' bonusesAsset retirement obligationsOthers
Total noncurrent liabilitiesTotal liabilities
Net Assets:Shareholders' equity -
Capital stockCapital surplusRetained earningsTreasury stock
Total shareholders' equityAccumulated other comprehensive income -
Valuation difference on available-for-sale securitiesForeign currency translation adjustment Remeasurements of defined benefit plans
Total accumulated other comprehensive incomeSubscription rights to shares -
Total net assets
Total liabilities and net assets
March 31 March 31
Thousands of yenThousands ofU.S. dollars
2017 20172016
¥7,481,847 ¥3,318,930 3,000,000
145,196 936,567
1,534 2,499,751 17,383,825
10,000,000 65
923,928 4,222 1,195
230,669 348,782
11,508,861 28,892,686
4,203,469 6,098,918
13,134,374 (1,900,416)
21,536,345
1,907 (294,554)
(13,554)(306,201)126,753
21,356,897
¥50,249,583
¥6,102,787 ¥2,884,408 4,000,000
271,839 941,847
9,787 2,267,964 16,478,632
2,000,000 545,983 868,560
7,484 -
153,996 415,581
3,991,604 20,470,236
4,203,469 7,513,373
21,629,469 (2,576,159)30,770,152
40,431 175,342 (27,392)
188,381 137,863
31,096,396
¥51,566,632
$66,689 29,583 26,740 1,294 8,348
14 22,281
154,950
89,135 1
8,235 38 11
2,056 3,109
102,584 257,534
37,467 54,362 117,073 (16,939)191,963
17 (2,625)
(121)(2,729)1,130
190,364
$447,897
Net ProfitCost of sales
Gross profitSelling, general and administrative expenses
Operating income
Non-operating income:Interest incomeDividends incomeForeign exchange gainsOthersTotal non-operating income
Non-operating expenses:Interest expensesForeign exchange lossesOthersTotal non-operating expensesOrdinary income
Extraordinary income:Gain on sales of property, plant and equipment Gain on reversal of subscription rights to sharesTotal extraordinary income
Extraordinary loss:Impairment lossLoss on sales of property, plant and equipmentLoss on sales of investment securitiesLoss on valuation of investment securitiesBusiness structure improvement expensesOthersTotal extraordinary losses
Income before income taxes
Income taxes-currentIncome taxes-deferredTotal income taxes
Income before minority interestsNet Profit
21 22
Consolidated Profit & Loss StatementWacom Co., Ltd. and Its Subsidiaries
$635,654 389,948 245,706 256,146 (10,439)
627 430
1,438 545
3,040
301 -
57 358
(7,757)
4 150 154
37,648 309
- 552
2,092 2,523 43,123
(50,725)
5,346 (6,739)(1,394)
(49,331)($49,331)
Thousands of yenThousands ofU.S. dollars
2017 20172016Years ended March 31 Year ended March 31
¥77,568,014 46,832,029 30,735,985 27,071,623 3,664,362
77,210 34,364
- 133,750 245,324
22,176 52,340 58,661
133,177 3,776,509
2,100 29,115 31,215
47,933 3,810
22,507 -
119,739 16,246
210,235 3,597,489
1,249,177 38,798
1,287,975
2,309,514 ¥2,309,514
¥71,313,987 43,748,217 27,565,770 28,736,964
(1,171,194)
70,353 48,218
161,321 61,182
341,074
33,757 -
6,351 40,108
(870,228)
487 16,832 17,319
4,223,720 34,689
- 61,873
234,648 283,020
4,837,950 (5,690,859)
599,715 (756,090)(156,375)
(5,534,484)(¥5,534,484)
Income before minority interestsOther comprehensive income
Valuation difference on available-for-sale securitiesForeign currency translation adjustmentRemeasurements of defined benefit plans, net of taxTotal other comprehensive income
Comprehensive income (Comprehensive income attributable to)
Comprehensive income attributable to owners of the CompanyComprehensive income attributable to minority interests
(¥5,534,484)
(38,524)(469,896)
13,838 (494,582)
(6,029,066)
(6,029,066) -
¥2,309,514
13,061 (893,216)
8,181 (871,974)
1,437,540
1,437,540 -
($49,331)
(343)(4,188)
123 (4,408)
(53,739)
(53,739) -
Wacom Co., Ltd. and Its Subsidiaries
Consolidated Comprehensive Income Statement
Thousands of yenThousands ofU.S. dollars
2017 20172016Years ended March 31 Year ended March 31
Shareholders' equity
Treasury shares Total shareholders'equity
Thousands of yen
Capital stock Capital surplus Retained earnings
¥4,203,469
4,203,469
¥4,203,469
¥7,550,743
(37,370)
7,513,373
(12,768)(1,401,687)
¥6,098,918
¥22,318,906 (2,998,951)2,309,514
21,629,469 (2,960,611)(5,534,484)
¥13,134,374
(¥1,455,137)
(1,219,000)97,978
(2,576,159)
(752,201)26,257
1,401,687
(¥1,900,416)
¥32,617,981 (2,998,951)2,309,514
(1,219,000)60,608
30,770,152 (2,960,611)(5,534,484)
(752,201)13,489
-
¥21,536,345
Balance at April 1,2015Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2016Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockRetirement of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2017
Valuation differenceon available-for-sales Securities
Foreign currencytranslationadjustment
Remaeasurementsof defined benefitplans
Total accumulatedother comprehensiveincome
Stockacquisitionright
Total net assets
Accumulated other comprehensive income
23 24
Consolidated Statements of Changes in Net AssetsWacom Co., Ltd. and Its Subsidiaries
(35,573)
8,181
(27,392)
13,838
(¥13,554)
¥1,060,355
(871,974)
188,381
(494,582)
(¥306,201)
¥180,634
(42,771)
137,863
(11,110)
¥126,753
¥33,858,970 (2,998,951)2,309,514
(1,219,000)60,608
(914,745)
31,096,396 (2,960,611)(5,534,484)
(752,201)13,489
- (505,692)
¥21,356,897
¥27,370
13,061
40,431
(38,524)
¥1,907
¥1,068,558
(893,216)
175,342
(469,896)
(¥294,554)
Balance at April 1,2015Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2016Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockRetirement of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2017
Treasury shares Total shareholders'equityCapital stock Capital surplus Retained earnings
Valuation differenceon available-for-sales Securities
Foreign currencytranslationadjustment
Remaeasurementsof defined benefitplans
Total accumulatedother comprehensiveincome
Stockacquisitionright
Total net assets
Shareholders' equity
Thousands of U.S. dollars
$37,467
$37,467
$66,970
(114)(12,494)
$54,362
$192,793 (26,389)(49,331)
$117,073
($22,962)
(6,705)234
12,494
($16,939)
$274,268 (26,389)(49,331)(6,705)
120 -
$191,963
Balance at March 31,2016Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockRetirement of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2017
($244)
123
($121)
$1,229
(99)
$1,130
Accumulated other comprehensive income
$360
(343)
$17
$1,563
(4,188)
($2,625)
Balance at March 31,2016Dividends from surplusNet profitPurchase of treasury stockDisposal of treasury stockRetirement of treasury stockNet changes of items other thanshareholders' equity
Balance at March 31,2017
$1,679
(4,408)
($2,729)
$277,176 (26,389)(49,331)(6,705)
120 -
(4,507)
$190,364
25 26
Consolidated Statements of Cash FlowsWacom Co., Ltd. and Its Subsidiaries
Net cash provided by (used in) operating activities:Profit before income taxesDepreciationImpairment lossShare-based compensation expensesIncrease (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for bonusesIncrease (decrease) in provision for directors' bonusesIncrease (decrease) in net defined benefit liabilityInterest and dividend incomeInterest expensesForeign exchange losses (gains)Loss (gain) on sales of property, plant and equipmentLoss on retirement of property, plant and equipmentLoss (gain) on sales of investment securitiesLoss (gain) on valuation of investment securitiesDecrease (increase) in notes and accounts receivable-tradeDecrease (increase) in inventoriesIncrease (decrease) in notes and accounts payable-tradeOther, net
SubtotalInterest and dividend income receivedInterest expenses paidIncome taxes paid
Net cash provided by (used in) operating activitiesNet cash provided by (used in) investing activities:
Purchase of property, plant and equipment Purchase of intangible assetsPurchase of softwareProceeds from sales of property, plant and equipmentProceeds from sales of investment securitiesPayments for lease and guarantee depositsProceeds from collection of lease and guarantee deposits
Net cash provided by (used in) investing activitiesNet cash provided by (used in) financing activities:
Increase in short-term loans payableDecrease in short-term loans payableProceeds from long-term loans payablePurchase of treasury stockProceeds from disposal of treasury stockCash dividends paid
Net cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Thousands of yenThousands ofU.S. dollars
2017 20172016Years ended March 31 Year ended March 31
(¥5,690,859)2,572,795 4,223,720
8,880 11,081 9,121 (8,253)
75,271 (118,571)
33,757 (136,323)
34,202 277,961
- 61,873
(1,471,111)(1,790,974)1,494,252 1,002,444
589,266 118,197 (30,380)
(555,155)121,928
(1,400,125) -
(2,567,092)535,527
4,851 (57,103)
4,044 (3,479,898)
- (1,000,000)8,000,000
(753,330)10,282
(2,958,250)3,298,702
(100,835)(160,103)
14,365,031
¥14,204,928
3,597,489 2,003,718
- 1,116
69,740 422,113 (49,559)68,725
(111,574)22,176
221,012 1,711
13,456 22,507
- (456,313)(342,300)
(2,780,336)851,354
3,555,035 111,064 (21,957)
(1,634,978)2,009,164
(1,166,777)(108,549)
(3,924,963)53,959
352,120 (98,645)14,731
(4,878,124)
5,400,000 (2,000,000) 2,000,000 (1,244,532)
45,563 (2,991,749)1,209,282
(661,910)(2,321,588)
16,686,619
14,365,031
($50,725)22,932 37,648
79 99 81 (74)
671 (1,057)
301 (1,215)
305 2,478
- 552
(13,113)(15,964)13,319 8,935 5,252 1,054
(271)(4,948)1,087
(12,480) -
(22,882)4,773
43 (509) 36
(31,018)
- (8,913)
71,308 (6,715)
92 (26,368)29,403
(899)(1,427)
128,042
$126,615
Basis of Presenting Consolidated Financial StatementsWacom Co., Ltd. and Its Subsidiaries
The accompanying consolidated financial statements have been prepared from the consolidated financial statements of Wacom Co., Ltd. (the “Company”) and its subsidiaries filed with the Director of the Kanto Local Finance Bureau in accordance with the Financial Instruments and Exchange Law of Japan and its related accounting regulations, and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects from the application and disclosure requirements of International Financial Reporting Standards.
166,546,400shares
31,746shareholders
Total number of Authorized Shares Total number of issued sharesTotal number of shareholders
27 28
Investor Information
Major Shareholders
Shareholder Distribution (As of March 31, 2017)
Foreign enterprises, etc.
<224 shareholders>
Other domestic enterprises
5.14%
<150 shareholders>
18.26%
Treasury stocks
4,175,300 shares<1 shareholder>
Securities companies
3.55%
<49 shareholders>
Individuals and other shareholders
41.63%
<31,298 shareholders>
552,000,000166,546,400
31,746
Name of shareholder Number of shares Shareholding ratio (%)
Stock Exchange ListingTokyo Stock Exchange First Section (Trade code 6727)
Share Data (As of March 31, 2017)
Samsung Asia Pte, Ltd.
STATE STREET LONDON CARE OF STATE STREET BANK AND TRUST,
BOSTON SSBTC A/C UK LONDON BRANCH CLIENTS- UNITED KINGDOM
The Bank Of New York 133524
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account 9)
Japan Trustee Services Bank, Ltd. (Trust Account)
Wilnau Co
The Bank Of New York Mellon (International) Limited 131800
Yoji Eto
Masahiko Yamada
8,398,400
8,273,700
8,050,500
7,684,400
6,315,200
5,456,000
4,840,000
4,589,100
4,425,000
3,768,000
5.17
5.09
4.95
4.73
3.88
3.36
2.98
2.82
2.72
2.32
5,920,573 shares
69,326,077 shares8,569,634 shares
48,147,316 shares
2.51%
28.91%
Financial institutions
<24 shareholders>30,407,500 shares
(As of March 31, 2017)
* Wacom has 4,175,300 shares of treasury stock at the end of the fiscal year, which isn't included in the above list.* Shareholding ratio is calculated after deduction of treasury stock.
Corporate Data
Trade Name
Established
Capital
Number of SharesOutstanding
Employees
BusinessSegments
Banks
Head Office/ Factory
Branch/Offices
InternationalAffiliates
Wacom Co., Ltd.
July 12, 1983
¥4,203 million (As of Mach 31, 2017)
166,546,400 (As of Mach 31, 2017)
Consolidated: 1,099Non-consolidated: 430 (As of Mach 31, 2017)
1. Brand Business Development, manufacture, sales of computer input devices
• Creative Business • Consumer Business • Business Solution
2. Technology Solution Business Development, manufacture and sales of input components and sensor systems for manufacturers of smartphones, tablets, and e-books
• Pen sensor systems • Touch sensor systems
3. Other Business Development, manufacture, sales of CAD solution and others
• CAD Software for electrical and mechanical engineering
Mizuho Bank, Ltd.The Bank of Tokyo-Mitsubishi UFJ, Ltd.Saitama Resona Bank, Ltd.Sumitomo Mitsui Trust Bank, Limited
2-510-1 Toyonodai Kazo-shi,Saitama 349-1148, JapanTEL: +81-480-78-1211 (Main)FAX: +81-480-78-1220
Tokyo BranchSumitomo Fudosan Shinjuku Grand Tower 31F, 35F,8-17-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo160-6131, Japan
Nagoya OfficeRound Terrace Fushimi 10F, 1-17-26 Nishiki,Naka-ku, Nagoya-shi,Aichi 460-0003, Japan
Osaka OfficeShogyo 2nd Bldg. 6th Floor, 5-4-9 Toyosaki,Kita-ku, Osaka-shi, Osaka 531-0072, Japan
Fukuoka OfficeHakata Ekimae Daini Bldg. 8th Floor,2-6-23 Hakataeki Higashi, Hakata-kuFukuoka-shi, Fukuoka 812-0013, Japan
Wacom Europe GmbH (Germany)Voelklinger Str. 1, 40219 Dusseldorf, Germany
Wacom Technology Corporation (U.S.A.)Wacom Technology Services, Corp. (U.S.A.)*1455 NW Irving Street, Suite 800 Portland, OR 97209, U.S.A.*The Subsidiary of Wacom Technology Corporation for for sales and marketing services
Wacom China Corp. (China)518, West Wing Office, China World Trade Center, No.1Jianguomenwai Avenue, Chaoyang District, Beijing 100004, China
Wacom Korea Co., Ltd. (Korea)Rm #1211, 12F, KGIT Sangam Center,402 Worldcup Bukro, Mapo-gu, Seoul 03925, Korea
Wacom Australia Pty. Ltd. (Australia)Ground floor, Building1, 3 Richardson Place,North Ryde, NSW, 2113, Australia
Wacom Hong Kong Limited (Hong Kong)Unit 1610, 16/F., Exchange Tower, 33 Wang Chiu Road,Kowloon Bay, Hong Kong
Wacom Singapore Pte. Ltd. (Singapore)#12-09 Suntec Tower Five, 5 Temasek Boulevard,Singapore 038985
Wacom Taiwan Information Co., Ltd. (Taiwan)9F-1, No.237 Songjiang Rd.,Zhongshan Dist. Taipei 104, Taiwan
Wacom India Private Limited (India)716, TowerB, DLF Building, Jasola District Centre,Mathura Road, New Delhi 110025, India
(As of June 24, 2017)
STAEDTLER adopts Wacom feel IT technologies for “STAEDTLER Noris digital”
Launched new pen tablet products “Wacom Intuos Pro”
Launched new display products “Wacom Cintiq Pro”
Launched new mobile products “Wacom Mobile Studio Pro”
Established Digital Stationery Consortium, Inc.
Launched new signature pad “STU-430V” for virtualized desktop environments
Signed an agreement with Microsoft to license its Windows Pen Protocol
Held the first “Connected Ink” event for digital ink standardization Launched “Bamboo Spark” as a new category of digital stationery
Global Organization Reform
Launched Wacom cloud services
Achieved 100 million units of pen component production
Announced new digital pen technology “Active ES”
Announced new digital ink technology “WILL”
Launched “Cintiq Companion” as a new category of mobile products
Received “Best IR Award for Small & Medium Cap. Companies” from Japan Investor Relations Association
Samsung adopts Wacom feel IT technologies for its high-end smartphone Galaxy Note
Launched “Bamboo Paper” for iPad users to create ideas with handwritten notes
Launched “Bamboo Stylus” for iPad
Acquired software business of digital signature from Florentis (UK)
Received the 16th “Disclosure Award” from Tokyo Stock Exchange
Established Wacom India Private Limited
Established Wacom Taiwan Information Co., Lid.
Announced multi-touch sensor system
Berliner Sparkasse The Saving Bank of Berlin adopts Wacom digital signature tablet Launched new brand “Bamboo” series for general consumers
Received the first “Disclosure Newcomer Award” from Tokyo Stock Exchange
Established Wacom Singapore Pte. Ltd.
Listed on the First Section of Tokyo Stock Exchange
Established Wacom Australia Pty. Ltd.
Established Wacom Digital Solutions (currently Wacom Korea Co., Ltd.)
Listed on the Tokyo Stock Exchange JASDAQ market
Launched new display products “Cintiq”
Established Wacom China Corp.
Launched new pen tablet products “FAVO/Graphire” for general consumers
Launched CAD software for electrical design “ECAD dio”
Launched pen tablet products “Intuos” for professional users
Established Wacom Technology Corporation
Established Wacom Computer Systems (currently Wacom Europe GmbH
Started business of pen tablet products and CAD software for electrical design
Established Wacom Co., Ltd. in Ageo City, Saitama, Japan (Capital stock of 48 million yen)
Our Milestones
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Jul. 1991
Apr. 1988
Jul. 1983