Professional Documents
Culture Documents
2012
2012 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 registered trademarks of their respective owners.
We looked inside ourselves to find the thought that defines and drives everything we do. An idea that helps us open up to experience the world in a new way. An idea to drive us forward.
Our Milestones
Bamboo Stylus Duo joined the Bamboo Stylus family, Duo provides both a nib of conductive rubber and a ballpoint pen in one stylus Intuos 5 professional pen tablet with pen and multi-touch function is released Samsung adopts Wacoms pen sensor component in the Galaxy Note Launch of Cintiq 24HD professional interactive pen display as the flagship model New bamboo series with pen and multi-touch functions for consumers is released Introduction of Wacom Inkling, a new digital sketch pen for professionals Jun. 2011 May. 2011 Mar. 2011 Feb. 2011 Jan. 2011 Oct. 2010 Sep. 2010 Jul. 2010 Launch of Bamboo paper for iPad users to create ideas with handwritten notes Bamboo Stylus specially designed for iPad is released. Acquisition of software business of digital signature from Florentis in UK Received the 16th Disclosure Award from Tokyo Stock Exchange ASUS adopts Wacoms pen and touch sensor component to a Tablet-type device Eee Slate Wacom India (a fully owned subsidiary) is established ECAD dio 2010 featuring harness design function for electrical design released Business solution partnership program starts to expand handwriting features for vertical market in Japan Launch of Cintiq 21UX, 21.3 professional interactive pen display featured with new high-performance pen Introduction of a new technology brand for user interface solutions, Wacom feel IT technologies Mass production and shipment of a new sensor system supporting the multi-touch functions to PC manufacturers Announce of development of a multi-touch sensor component Wacom Taiwan Information (a fully owned subsidiary) is established in Taiwan as a marketing and customer service base for Taiwan market Development of a multi-touch sensor component is announced Nov. 2007 Oct. 2007 Berliner Sparkasse adopts Wacom STU series of signature tablet for digital signature solution for its private client centers Launch of Cintiq 12WX interactive pen display as a mobile companion, and as a secondary monitor in multi-monitor environments Celebrated 25th anniversary, and announced new growth vision and new brand concept Open up. Sense more. for the future Bamboo is launched for general consumer PC users Received the first Disclosure Newcomer Award from the TSE Wacom Singapore (a fully owned subsidiary) is established in Singapore as a sales base for the South and Southeast Asian markets Wacom Hong Kong (a fully owned subsidiary) is established in Hong Kong as a sales base in the South China
Financial highlights
For the year: Net sales Gross profit Operating income Net income Comprehensive income At year end: Total assets Total net assets Per share (yen and U.S. dollars) : Net income Primary Diluted Cash dividends applicable to the year
Mar. 2010
Thousands of yen 20109 2011 2012 2011 33,030,359 15,634,445 3,252,086 1,967,083 1,408,053 27,093,503 18,481,946 40,705,578 17,895,936 4,067,475 2,181,341 2,007,351 34,129,398 18,917,895
Thousands of U.S. dollars* 2011 2012 $495,262 217,739 49,489 26,540 24,423 $415,250 230,173
*Note 1: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 82.19=U.S. $1, the approximate exchange rate prevailing on March 31, 2012.
Net sales
40,706
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
Net income
3,500 3,000
Total assets
35,000
3,501
18,517
18,918
Wacom pen sensor components are adopted in e-Book devices with e-paper Our stock is listed on the First Section of Tokyo Stock Exchange(TSE) Wacom Australia (a fully owned subsidiary) is established in Australia, as a sales base for the Oceania market Cintiq 21UX launched, setting a new standard for digital pen-based imaging Wacom Digital Solutions (presently Wacom Korea a fully owned subsidiary) is established in Seoul as a sales base in South Korea HP Tablet PC adopts Wacoms Penabled pen sensor component Listed on the JASDAQ market Launch of Cintiq, a line of interactive pen displays Wacom China (a fully owned subsidiary) is established in China Launch of Graphire/FAVO, a line of consumer pen tablets Launch ECAD/dio, a CAD system for electrical engineering Launch of Intuos, a line of professional pen tablets Wacom Technology (a fully owned subsidiary) is established in Vancouver, Washington, as a marketing and sales base in the Americas Wacom Computer Systems (presently Wacom Europe a fully owned subsidiary) is established in Neuss, Germany, as a marketing and sales base in Europe Operation of tablet product and CAD system for electrical engineering begins Wacom Co., Ltd. is established in Ageo City, Saitama, Japan, with common stock of 48 million yen
2,579
2,500
15,000
2,181
2,000 1,500 1,000 500 0
1,968 1,967
08 09 10 11
12
08 09 10 11
12
08 09 10
11
12
08 09 10
11
12
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
Contents
The key to our success Our milestones To our shareholders Where are we now? Our businesses
DISCLAIMER
Forward-looking statements regarding future events and performance contained in this annual report are based on currently available information and involve risks and uncertainties, including macroeconomic conditions, trends of the industry in which the company is engaged, and progress in technologies. Please note that actual results could materially differ from those expressed or implied by the forward-looking statements in this annual report due to these risks and uncertainties.
3 4 5 7 9
Our global model Our Team Financial section Corporate data Investor information
15 17 19 45 46
Jul. 1983
To Our Shareholders
Firstly, please let me express our sincere appreciation for your unchanging support to Wacom during FY29. The year was full of unexpected business risks, but thanks to your support, Wacom could manage them and grew the business successfully. We are pleased to present Wacoms Annual Report for our 29th fiscal year, representing the results from April 1, 2011 through March 31, 2012. Under our corporate vision of creating harmony between people and technology, we have been serving the world with natural, intuitive and human-friendly user interface solutions to help our customers. We are proud that our products serve a wide range of professional users around the world in creating 3D films and games, auto designs, as well as medical and education solutions, etc. Also, our products are used by a wide range of consumer users at home who enjoy creativity and sharing with friends. Our technology is helping to create new category products such as Smartphones, e-Books and tablet devices. In the spirit of our brand concept Open up. Sense more., Wacom will continue to pursue making natural user interface solutions to support human creativity and for enriching life. In our component business, we will strive to establish the leadership in Smartphone and Windows 8 based tablet devices, as well as building a foundation for touch component segments. In the area of business infrastructure development, we will enhance the SCM organization for component business and ERP support for Asia Pacific countries. Taking into account our business outlook and necessary investments for the future, we project net sales of 50,400 million (up 23.8%), operating income of 5,600 million (up 37.7%), ordinary income of 5,570 million (up 43.1%), and net income of 3,600 million (up 65.0%) based on the assumed exchange rate of 75 per 1 US dollar and 100 per 1 EURO for the fiscal year ending March 31, 2013. We regret that the mid-term business plan of WP-1015 that targets net sales of 100 billion and operating income over 15% by the fiscal year ending March 31, 2014 will not be achievable within the original time frame. Taking into account the rapidly changing market environment, the result in FY30 and high volatility in currency exchange rate, we will need to revise the mid-term plan. For FY30, we will focus on achieving our financial target and improving our ROE while maintaining the ongoing risk measures.
Your dividend
To thank you for your support and in reflecting the financial result for the fiscal year, we offered an ordinary dividend of 3,000 per share to our shareholders as of March 31, 2012. While we will manage the financial base carefully, we intend to continue stable dividend payouts and take other investor return measures as we see fit.
Masahiko Yamada
President & CEO
Wacom enhances the life experience by creating harmony between people and technology.
5 6
Cintiq 24HD was unveiled for creative professionals seeking the ultimate pen interactive display
Cintiq 24HD was launched in October 2011 as the high-end model for LCD pen tablets. It has instantly gained a favorable reputation among the film industry which continues to progress in 3D production and the automobile industry which highly values natural and intuitive industrial design tools. In the Cintiq 24HD, Wacom delivers a host of features such as the ergonomically designed counter-weighted stand, easy access to the Touch Ring, shortcut and modifier Express Keys to enhance workflow and user comfort, toppe d of f by Wacom s most re alistic pe n technologies ever which include sophisticated pressure sensitivity, etc. Since its launch, favorable sales continued beyond the Company s expe c tation a nd signif ic a ntly contributed to the sales expansion of its Professional Tablet Business for the fiscal year ended March 31, 2012.
Wacom introduced a new ink communication with Bamboo Stylus and Bamboo Paper
Wacom launched Bamboo Stylus for iPad in May, 2011 as a new product field. The design, ergonomics and natural feel of the Bamboo Stylus brought potential demands to iPad uses for a premium pen writing and sketching experience. It demonstrated favorable sales growth so a handwriting application called Bamboo Paper, which allows iPad users to create and share ideas visually with notes and sketches, was also offered to iPad users in June 2012 and recorded over 3 million downloads worldwide by the end of March 2012. Following the successful launch of the original Bamboo Stylus, Wacom added various new types such as 5 colored bodies or a dual-purpose model with built in ball-point ink pen and aims to open up new fields.
Our Businesses
Consumer products
Our company is made up of three business sectors in the fiscal year ending March 31, 2013 Brand products, Components and Other businesses. We develop, manufacture, and sell solution products which create harmony between people and electronic devices in the field of interface technologies.
Bamboo series, our consumer pen tablets, provide a natural-to-use tool for expressing creative ideas and communicating with friends, colleagues, and family through social networks in a personal way. Wacom has expanded models combining pen and touch technology. Bamboo not only enables users to intuitively draw, paint, sketch, and retouch digital photographs, but also simplifies for everyone navigating around the computer and the Internet.
Brand Business
We have various types of pen tablets; the models open up a world of possibilities and help our customers to experience more with our unique digital pen and multi-touch technologies. We command an impressive 80 % (our estimate approximately) of the global market and 89.8 % of the Japanese market (BCN Inc. 2011). It will not stop there as Wacom expects the market to accelerate substantially.
Professional products
Throughout the world, our professional product range is unrivalled and acknowledged to be the industry standard with our unique technology, high performance and quality. Intuos is highly acclaimed by professionals who create inspirational movies, animation, games, digital art, and web designs. Cintiq series, interactive displays providing the freedom to work with the pen directly on screen, enjoy a global reputation for offering high productivity to many professionals from photographers to car designers. Inkling digital sketch pen captures a digital likeness of your work while you sketch with its ballpoint tip on any sketchbook or standard piece of paper.
If you have never watched American Chopper, the hit reality televsion show on the Discovery Channel that features custom motorcycle manufacturing at its finest, then you are missing out on some quality enertainment. There are a variety of spirited characters that work for Orange County Choppers (OCC) on the show including Jason Pohl, lead designer for the OCC team. Jason, a Wacom Cintiq user for close to a decade, enjoys the intuitive and natural feel of designing directly on screen with the Cintiqs pressure-sensitive pen along with creative applications such as Adobe Photoshop, Illustrator and others. Says Jason of his recently acquired Cintiq 24HD The Cintiq workflow allows me to effectively collaborate with colleagues and customers as well as meet production deadlines. Wacoms latest Cintiq emulates working with traditional media and provides the comfort, color and control I need to keep my drawings fresh and original.
Bamboo Stylus offers a brand new way to experience hand-written note-taking, sketching, and drawing with creative expression, specifically for Apple iPad users. It enables a more intuitive and accurate way to take notes in meetings and classroom settings or to sketch out rough ideas. Bamboo Stylus is available in six colors and Bamboo Stylus duo features the same responsive smooth pen nib plus a ballpoint nib. Bamboo Paper opens up new ways of creativity and gives a real pen and paper feeling for iPad users. Bamboo Paper turns any iPad into a digital notebook with the ability to share handwritten or sketched ideas and concepts.
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Business products
DT/PL and STU series, interactive pen displays are invaluable for a variety of tasks for more general users such as settlement processing, medical recording equipment, and educational systems, etc.
Digital signature
The digital signature solution with STU series is an accepted best practice among financial institutions. It makes a contribution to not only saving customer information as secured digital data in each corporate style but also conserving paper resources. In Europe, Berliner Sparkasse and others adopted our signature tablets to digitally sign documents for opening accounts. La Laport a major mall management company in Japan and IKEA in Germany use our products for credit-card transactions with a digital signature. The Hilton Hotel in Milan, Italy also utilizes STU-520 for the digital check-in to improve work processes.
Wacom feel IT Technologies is the brand that provides user interface technology directly from Wacom. By integrating user interface technology such as multi-touch sensor, pen sensor, controller and device driver in the most sophisticated method, the brand provides highly natural and intuitive user interface experiences for smart phones, Tablet-type devices, PCs, e-books and other IT devices.
Component Business
Air traffic control sector
Wa c o m a n d i t s p a r t n e r s h ave wo r ke d c l o s e l y together over the last few years to develop a reliable electronic flight strip system, replacing the traditional paper based air traffic management. The German Air Navigation Ser vices DFS Deutsche Flugsicherung GmbH has also adopted our interactive pen displays at their air traffic control centers and towers in Germany af ter extensive research and tests. Our interactive pen displays have become the standard for controllers because of the ease in handling electronic flight strips, guaranteeing a seamless transition to digital. A major smart phone manufacturer and many PC makers worldwide have adopted our pen sensor components plus pen and multi-touch sensor solutions. Our components allow IT devices to be operated naturally with a digital pen and even with the touch of fingers with our original IC controller. Our component business is growing with the expansion of new markets such as smart phones, Tablet-type devices, and e-book devices.
Others
CAD system ECAD dio
ECAD dio, Japan s leading CAD system for electrical design, streamlines overall operations by helping users to create electrical system design diagrams, while synchronizing design data with control equipment and peripheral devices. It also enhances wire harness design capability for industrial machinery, etc.
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12
Product portfolio
Mobile
Component products
ProfessionalBusiness
Consumer
STU series
Desktop
Growth strategy
Input market
1983
1990
1995
2002
2007
2010
2012
Near future
Internet
PCs, Cellular Phones, PDAs etc.
The worlds first tablet operated by cordless electronic pen developed. Core technology established with electronic pen.
Broadband
e-Learning, Rich Digital Contents, Informtion Security etc.
Ubiquitous
Digital Paper, Multifunctional Terminals, Tablet PCs etc.
Pen input
Standard Support on Windows Vista OS
Multi-touch
Standard Support on Windows 7 OS, Android OS
Ink communication
Standard Support on Android 4.0 OS, Windows 8 OS
Tablet market
Digital pen, Stylus pen, and Applications Electronic seals and other security applications Touch sencer components
Pen sensor components Interactive pen displays Pen tablets for consumer use Pen tablets for professional use Digitizer and software
elop Dev
an e nt
dS
ales
Strengthening of the leadership in Pen tablet field Expansion of components business Improvement and global development of branding New business development, R&D
13
Toward becoming the de facto standard for the Digital Paper era
14
11.3%
Europe
Japan
21.9%
Wacom
44.5%
(Components 28.5%)
80%
Wacom
America
89.8%
22.3%
Back in the 1980s, we set up our corporate headquarters in Japan. We extended our global operations to the United States and Germany, and then expanded to China, Korea, Australia, Singapore, Hong Kong, Taiwan, and India. Each of our regional subsidiaries maximizes our strength as a global company and helps us offer dynamic products and services that exceed customer expectations as well as performing regional business functions.
1 28 9, 49 ,7 99 6 18 9, 36 0 9, 60 0 24 4, 11 8, 1 24 63
,
Bar graphs indicating sales by region Units (figures in black-letter): Millions of yen Units in America (figures in red-letter): Thousands of U.S. dollars Units in Europe (figures in blue-letter): Thousands of Euro
52 ,1 18
59
,4 67
34
Interview from a global leader of Wacom Wacom continues to optimize our global business model. A global leader, Mr. Har tmut Woerrlein of GPM (Global Product Management) comments on business as follows;
Hartmut Woerrlein Director Global Product 1. What does GPM do? Management In a simplified way you could say that in each business there are only two things : Customers and Products. Happy customers like to buy our products and recommend to buy Wacom p ro du c ts to the ir f r ie nd s, fa mily a nd bu sine s s partners. GPM makes sure that we understand which products to develop and when to bring them to the market. We define products, line ups, an entire portfolio, the positioning in the market, the look and feel, the materials and many other things, too. We closely collaborate with all the regional sales offices and almost every department in the company.
essential to understand customers around the globe. Customers are not global. They live where they live and they live in their culture. To understand how we can best serve them we decided to spread the team across the globe also. Let me give you a practical example what this could mean: For customers in Japan Manga Art is part of their culture. In Europe and the US Manga is known only by some (young) people but very few do Manga Art. It s just not part of their culture. 4. W h a t a r e t h e d i f f i c u l t i e s i n G l o b a l Pr o d u c t Management with being global? Time zones. I spend most of my time in Japan. My wife and my kids live in Germany. I call them at 6am (23:00 over there) or late at night. The US team is another nine hours behind. To make things worse there is winter time with one hour plus or minus. And it doesn t change on one day globally. Sometimes I s how up at m e e ting s o ne hou r late - i t c a n b e embarrassing. Imagine meetings from 23:00 in the US, 8am in Europe, 14:00 in Taiwan, 15:00 in Japan. Sometimes we are attending meetings from 1am to 5am and then again from 7am to 9am.Besides the time zones we have to work very hard to understand and accept cultural differences. 5. What are the important points you keep in your mind as a GPM leader? Customers, good team work, success for Wacom and (maybe my most important one) a lot of fun.
0 7, 10
9 08
6 7,
49
8,
4, 2
10
11
12
10
11
12
10
3,
11
12
4, 5
90
59
85
9
,8 80
67
,9 10
31
,9 11
51
10
11
12
America
Europe
Asia/Oceania
Japan
For the year ended March 31
2. What are GPM members regional backgrounds? We have GPM members in Japan, the US, in Europe and in Taiwan. They are global but in their passports they are from the UK, the US, Germany, Japan and Taiwan and they speak several languages. They have worked in marketing, sales, engineering, supply chain management, quality control in manufacturing and other areas. Quite a good mix of skills. I am very proud of my excellent team. Very proud. 3. What are the merits in Global Product Management as being global? AAs Wacom is a global company doing business in almost all countries around the globe in a nicely balanced way (not only in one or two countries) it is
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Our Team The Board of Directors, Corporate Auditors and Executive Officers / Corporate Governance
Name
Date of birth
Brief of Biography April, 1986 Joined Wacom. June, 1996 Served as a Director, Division Manager of Electronic Systems and Devices (ESD). April, 1999 Served as an Executive Director, the Division Manager of ESD.
June, 2003 Served as an Executive Director, the Senior Executive Officer. April, 2004 Served as an Executive Vice President, the Chief Operating Officer.
Board of Directors
(From the left) Sadao Yamamoto, Shigeki Komiyama, Masahiko Yamada, Wataru Hasegawa, Yasuyuki Fujishima
June, 2004 Served as the President & CEO. (present post) Shigeki March 28, 1959 Komiyama April, 1981 Joined Citizen Watch. January, 2000 Served as the President, Handspring. December, 2002 March, 2004 Joined SGI Japan as the Vice President, Marketing. Joined Wacom as an Executive Officer of Global Marketing and Sales. 32
Corporate Auditors
Haruo Mizuno (Full-time), Takeshi Ebitani, Takashi Kamura
Executive Officers
Masahiko Yamada CEO, Shigeki Komiyama Japan-Asia Pacific Region, Wataru Hasegawa Chief Financial Officer, Sadao Yamamoto R&D Office, Hidetoshi Kamoto Component Business Division, Masahiro Oba Tablet Business Unit SCM Division, Koji Shimoda Tablet Business Unit Product Development Division, Joseph Deal Wacom Technology, Han Stoffels Wacom Europe
June, 2005 Served as an Executive Director, the Executive Officer of Global Marketing and Sales. April, 2010 Served as an Executive Director, Executive Officer of the Asia-Pacific Region. (present post)
Corporate Governance
The Board of Directors and Board of Corporate Auditors are responsible for corporate governance at Wacom. We currently have 5 directors, including one non-executive director. We have three independent corporate auditors and one full-time corporate auditor. In addition, to ensure the smooth running of our business, we have introduced a corporate executive officer team with clearly-defined responsibilities. The Corporate Management Meetings, comprising the executive officers and chief general managers, are held twice a month to supervise the implementation of the business plan, control the budget and review agreed-upon actions. The Internal Audit Office, overseen by the Chief Executive Officer, is responsible for auditing the compliance of each of our companies with regard to laws, regulations and social values, together with ensuring adherence to the Companys rules. In addition, the Risk Management Committee is responsible for the internal control of compliance, information security, risk management and elimination of anti-social activity. Furthermore, we have established a risk hotline system, operated by an independent organization, to monitor and minimize potential damage associated with compliance risks.
April, 1982 Joined Sumitomo Electric Industries. June. 2000 Joined Cisco Systems. April, 2002 Joined Oracle Corporation Japan as the General Manager of Accounting. June, 2004 Joined Wacom as the Chief Financial Officer. June, 2005 Served as an Executive Director, the Chief Financial Officer. (present post)
12
Sadao Yamamoto
March, 1987 Joined Wacom. April, 1998 Served as the General Manager of Basic Development of ESD. June, 1999 Served as an Executive Director. June, 2004 Served as an Executive Director, the Chief R&D Officer.
1,880
Execution of Operations, Audit, and Internal Control Systems as of June 23, 2012
April, 2010 Served as an Executive Director, the Chief R&D Officer, General Manager of R&D Office. (present post) Yasuyuki Fujishima
Election/dismissal
July, 1969 Entered the Ministry of International Trade and Industry. July, 1997 Joined the Policy Board of the Bank of Japan and Served as a delegate of the Economic Planning Agency. July, 1998 Entered the Ministry of Foreign Affairs as the Ambassador of the Republic of Panama. March, 2001 Joined Nissho Iwai (the present company name is Sojitz) as an Advisor.
180
Election/dismissal
Accounting audit
Accounting Auditors
Chief Executive Officer Internal Audit Office Corporate Management Meeting (8 Executive Officers) Risk Hotline Risk Management Committee
November, 2002 Joined Wacom as an Executive Director. (present post) April, 2008 Served as Vice President, a Senior Executive Officer at Sojitz. August, 2010 Joined Mutual Service Aid Guarantee Corp. as the President & CEO. (present post)
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Five-Year Summary
Wacom Co., Ltd. and Its Subsidiaries
Five-Year Summary
Thousands of yen Year ended March 31 2011 2010 Thousands of U.S. dollars Year ended March 31 2012 $495,262 217,739 49,489 42,639 26,540 24,423
2008
2009
2012
Financial Section
36,739,196 33,809,138 32,044,578 33,030,359 40,705,578 18,640,355 16,761,164 15,668,147 15,634,445 17,895,936 4,067,475 3,127,822 4,311,378 3,252,086 5,538,871 3,504,537 3,120,867 4,179,661 2,952,508 5,564,082 2,181,341 1,968,406 2,579,025 1,967,083 3,501,360 2,007,351 1,408,053 -
Total net assets Total assets Net income per share Basic Diluted
$66.48 66.42
Note 1: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 82.19=U.S. $1, the approximate exchange rate prevailing on March 31, 2012. Note 2: Repurchase of 20,000 own shares for 1.85BJPY in 2009. 3 F.Y. and 5,000 own shares for 0.44BJPY in 2012. 3 F. Y. Note 3: The figures in 2011. 3 F. Y. were recalculated retroactively because of the adoption of the new accounting principles in revenue recognition. Note 4: The tablet business was reorganized into three categories of Professional Products, Consumer Products, and Business Products by use in in 2012. 3. F. Y.
Net sales
(Millions of yen)
40,000
20,000
55
6,000
30
36,739
5,539
5,000 50 4,000 25
Contents
20 Five-Year Summary 21 Overview of Business Performance 24 Consolidated Balance Sheets 26 Consolidated Statements of Income
35,000
50.7
30,000
4,311 4,067
20
25,000
15.1
20,000 10,000 45 3,000
3,128 12.8
3,284
15
44.0
15,000
9.8
2,000
9.9
10.0
10
27 Consolidated Statements of Comprehensive Income 28 Consolidated Statements of Changes in Net Assets 29 Consolidated Statements of Cash Flows 30 Notes to Consolidated Financial Statements 44 Report of Independent Auditors 45 Corporate data 46 Investor Information
0 08 09 10 11 12 0 08 09 10 11 12 35 10,000 5,000 40
1,000 5,000
08
09
10
11
12
19
20
How did the global economy affect our business in our 29th year?
For the fiscal year ended March 31, 2012 of our 29th year under review, the operating environment for Wacom Group was influenced by the suspension of manufacturing and a weak domestic economy in Japan in the aftermath of the Great East Japan Earthquake during the first quarter, and subsequently in the second quarter by disruptions to the supply chain for PCs and other products due to flooding in Thailand. Globally, the US economy appeared to stabilize somewhat with improvements in employment and other factors, while in Europe uncertainty increased amid the continued debt crisis. Although relatively high growth rates continued in emerging economies such as China and India, a number of factors caused a slowing of this growth, including inflation concerns and a decrease in exports to Europe. The yen remained strong against the US dollar and the euro, and this adversely impacted the performance of Wacom Group. In the IT industry, there was rapid growth in new product categories such as smartphones and tablets, while major manufacturers of PC and mobile phone handsets undertook initiatives to expand their product line and establish their positions in these new markets. In markets where Wacom Group offers products, a number of trends were evident. In Professional Products, 3D production progressed and the adoption of digital design technology accelerated in the movies and games industries. In Asia, industrial design and digital content industries expanded. In Consumer Products, there has been growth in the use of electronic pens for illustrations, photo retouching and web design, as well as for communication on social networks such as facebook. The spread of tablet and e-book devices has revealed a strong need for natural and intuitive input by hand. In Business Products, the use of LCD tablet products is increasing, with a growing demand for improved security and paperless environments across a broad range of sectors, including medicine, education and finance. Electronic settlement using digital signatures is attracting particular attention as a highly effective way to protect individual information, improve operational efficiency and reduce document handling costs. In Component business, there is a growing need for pen and/or multi-touch technology for Windows and Android tablet PCs, tablet devices, smartphones, e-book readers and other such devices. Moreover, there are also opportunities in the emerging category heralded by the October announcement in Europe of Samsung s Galaxy Note, a smartphone that incorporates a pen function. Wacom Group s activities for the year under review included announcing and launching a record number of new products in the market, while continuing to manage business risks such as natural disaster and foreign exchange rate fluctuations. We expanded our lineup of products for tablet devices, pursued web-based and other marketing initiatives, enhanced our supply chain management, worked on the development of new technology, and took steps to improve operating profitability. We also introduced a new ERP system, which has been performing steadily since August, as part of our investment in IT systems to support higher productivity and growth. During the year we recorded extraordinary losses for a number of items, including expenses concomitant with withdrawal from our pension fund after it had been deemed an increasing financial risk, repair costs for head office premises damaged in the Great East Japan Earthquake, and expenses associated with the planned July 2012 transfer of the Tokyo branch office. Accordingly, for the full year Wacom Group s consolidated net sales increased 23.2% to 40,705 million, operating income increased 25.1% to 4,067 million, ordinary income increased 15.7% to 3,891 million and net income increased 10.9% to 2,181 million. Net income per share (basic)
(Millions of yen)
(Millions of yen)
8,349
8,000
6,214
6,000
4,000
2,000
0 08 09 10 11 12 Note: Common shares were split on a four-for-one basis on November 18,2005. Per share data before 2005.3.F.Y.term reflect the above share splits. (For the years ended March 31)
ROE/ROA
(%)
25
20.1
20
Although business in this area was affected by the strength of the yen, sales increased as a result of new product releases. In Professional Products, new products included the extremely sophisticated Cintiq 24HD and the Intuos 5 were well received and sales grew steadily. We also released Inkling, a digital pen, which was selected by TIME magazine as one of its Top 50 inventions in 2011. In Consumer Products, sales of the Bamboo series were broadly unchanged, reflecting weakness in the European and North American markets. However, overall sales progressed steadily, supported by continued strong sales of Bamboo Stylus pens for the iPad. In Business Products, we doubled sales of our digital signature tablets. However, overall sales in the category declined by the termination of a certain OEM project in the U. S. Looking at sales by region, in U. S., sales were largely with a decline in Business Products offset by steady progress in sales of Professional Products and Consumer Products. In Europe, sales increased steadily in all product lines, supported by the launch of new products. In Japan, sales increased with the impact of the earthquake disaster offset by such factors as strong sales of the Cintiq series and growth in Consumer Products. In Asia & Oceania, overall performance was firm. Reflecting the above initiatives and outcomes, sales in the Tablet business category incre a se d 7.7% to 28.51bn, with ope rating income decreasing 9.0% to 5.12bn.
33,030
2012
40,706
Tablet Business
11 Sales 12
(Millions of yen)
UP 7.7%
26,466 28,507
DOWN 9.0%
Operating income
11 12
5,630 5,125
(For the years ended March 31)
15
(ROE) 11.7
Component business
Sales increased significantly, primarily due to the start of commercial production of Wacom s pen-sensor system adopted by Samsung for its Galaxy Note smartphone. Solid shipments were also made of products destined for use in Windows PCs, tablet devices, smartphones, e-book readers, etc. In new product development, progress was made in developing a new sensor controller IC, a Windows 8-compatible sensor system, and in other areas. Reflecting the above initiatives and outcomes, sales in the Components business category for the year ended March 31, 2012 increased 91.0% to 11.68bn, with operating income of 1.09bn compared to an operating loss in the previous year of 0.24bn.
Component Business
11 Sales 12
(Millions of yen)
10
UP 91.0%
6,117 11,683
0 08 09 10 11 12 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. (For the years ended March 31)
Operating income
11 12
236 1,091
Equity ratio
(%)
80
Other business
69.4 68.1 64.8 55.2
70
63.5
60
50
In Software business, sales increased steadily due to improved operating efficiency arising from stronger partnerships with major domestic distributors, along with the commencement of a harness sales proposal approach. Sales were also supported by the launch of a new version of ECAD dio 2012, enhanced to facilitate large-scale design. Sales in the Other business increased 15.3% to 0.52bn, with operating income of 0.07bn compared to an operating loss in the previous year of 0.15bn.
Other Business
11 Sales 12
(Millions of yen)
UP 15.3%
447 515
40
Operating income
11 12
150 70
30
08
09
10
11
12
21
22
5000
4,881
4000
3,461
3000
3,606
2000
1,478 1,179
1000
Assets: Current assets Cash and deposits (Note 9) Notes and accounts receivable-trade (Note 5) Merchandise and finished goods (Note 2) Work in process (Note 2) Raw materials and supplies (Note 2) Deferred tax assets Others Allowance for doubtful accounts (Note 2) Total current assets Noncurrent assets Property, plant and equipment: (Note 2) Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Total property, plant and equipment Intangible assets: Software Goodwill (Note 2) Others Total intangible assets Investments and other assets: Investment securities (Note 2) Deferred tax assets Others Allowance for doubtful accounts (Note 2) Total investments and other assets Total noncurrent assets Total assets
3,509,188 (1,891,644) 1,617,544 216,020 (125,043) 90,977 1,908,180 (1,417,911) 490,269 1,436,489 3,635,279 956,112 68,554 1,218,714 2,243,380 14,778 23,815 243,138 (16,599) 265,132 6,143,791 27,093,503
3,542,535 (1,965,429) 1,577,106 199,974 (131,317) 68,657 2,230,773 (1,694,893) 535,880 1,435,469 3,617,112 1,900,296 46,905 529,960 2,477,161 195,115 13,786 352,069 (15,861) 545,109 6,639,382 34,129,398
43,102 (23,913) 19,189 2,433 (1,598) 835 27,142 (20,622) 6,520 17,465 44,009 23,121 571 6,448 30,140 2,374 168 4,283 (193) 6,632 80,781 $415,250
-805 -1,174
-1500
-1,539
-2000
-1,470 -1,697
09 10 11 12
08
4,000 3,000
61.2 48.3
60.7 54.9
60 50
29.9 2,500
3,000
3,000
3,000
3,000
40 30 20 10
08
09
10
11
12
08
09
10
11
12
23
24
Liabilities: Current liabilities Notes and accounts payable-trade (Note 5) Short-term loans payable Income taxes payable Provision for bonuses (Note 2) Provision for directors' and statutory corporate auditors' bonuses (Note 2) Provision for loss on disaster (Note 2) Provision for loss on business liquidation (Note 2) Asset retirement obligations Others Total current liabilities Noncurrent liabilities Deferred tax liabilities Provision for retirement benefits (Notes 2) Asset retirement obligations Others Total noncurrent liabilities Total liabilities Net Assets: Shareholders' equity - (Note 8) Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment (Note 2) Total accumulated other comprehensive income Subscription rights to shares - (Notes 8) Total net assets Total liabilities and net assets
Net sales Cost of sales (Note 6) Gross profit Selling, general and administrative expenses (Note 6) Operating income Non-operating income: Interest and dividends income Refund of value added tax in foreign subsidiary Others Total non-operating income Non-operating expenses: Interest expenses Foreign exchange losses Others Total non-operating expenses Ordinary income Extraordinary income: Gain on sales of noncurrent assets (Note 6) Reversal of allowance for doubtful accounts Total extraordinary income Extraordinary loss: Loss on sales of noncurrent assets (Note 6) Loss on retirement of noncurrent assets (Note 6) Loss on valuation of investment securities Loss on adjustment for changes of accounting standard for asset retirement obligations Loss on business liquidation Loss on withdrawal from employees' pension fund (Note 6) Office transfer expenses (Note 6) Others Total extraordinary losses Income before income taxes Income taxes-current Income taxes-correction Income taxes-deferred Total income taxes Income before minority interests Net income
4,196,405 4,037,819 13,800,300 (1,848,486) 20,186,038 (1,736,009) (1,736,009) 31,917 18,481,946 27,093,503
4,203,469 4,044,882 14,776,193 (2,287,245) 20,737,299 8,443 (1,918,442) (1,909,999) 90,595 18,917,895 34,129,398
51,143 49,214 179,781 (27,829) 252,309 103 (23,342) (23,239) 1,103 230,173 $415,250
1,337 1,337
16 16
873 12,742 20,000 28,578 134,243 220,126 416,562 2,952,508 1,416,492 (354,437) (76,630) 985,425 1,967,083 1,967,083
2,057 10,751 253,775 59,150 62,768 388,501 3,504,537 1,865,168 (541,972) 1,323,196 2,181,341 2,181,341
25 131 3,088 720 763 4,727 42,639 22,693 (6,594) 16,099 26,540 $26,540
25
26
Income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total other comprehensive income (Note 7) Comprehensive income (Note 7) (Comprehensive income attributable to) Comprehensive income attributable to owners of the Company Comprehensive income attributable to minority interests
Shareholders' equity: Capital stock Balance at the end of previous period Changes of items during the period: Issuance of new shares Total changes of items during the period Balance at the end of current period Capital surplus Balance at the end of previous period Changes of items during the period: Issuance of new shares Total changes of items during the period Balance at the end of current period Retained earnings Balance at the end of previous period Cumulative effect of changes in accounting policies Retained earnings as restated Changes of items during the period: Dividends from surplus Net income Total changes of items during the period Balance at the end of current period Treasury stock Balance at the end of previous period Changes of items during the period: Purchase of treasury stock Total changes of items during the period Balance at the end of current period Total shareholders' equity Balance at the end of previous period Cumulative effect of changes in accounting policies Shareholders equity as restated Changes of items during the period: Issuance of new shares Dividends from surplus Net income Purchase of treasury stock Total changes of items during the period Balance at the end of current period Accumulated other comprehensive income: Valuation difference on available-for-sale securities Balance at the end of previous period Changes of items during the period: Net changes of items other than shareholders' equity Total changes of items during the period Balance at the end of current period Foreign currency translation adjustment Balance at the end of previous period Changes of items during the period: Net changes of items other than shareholders' equity Total changes of items during the period Balance at the end of current period Total accumulated other comprehensive income Balance at the end of previous period Changes of items during the period: Net changes of items other than shareholders' equity Total changes of items during the period Balance at the end of current period Stock acquisition right: Balance at the end of previous period Changes of items during the period: Net changes of items other than shareholders' equity Total changes of items during the period Balance at the end of current period Total net assets Balance at the end of previous period Cumulative effect of changes in accounting policies Net assets as restated Changes of items during the period: Issuance of new shares Dividends from surplus Net income Purchase of treasury stock Net changes of items other than shareholders' equity Total changes of items during the period Balance at the end of current period
(1,176,979) (559,030) (559,030) (1,736,009) (1,176,979) (559,030) (559,030) (1,736,009) 31,917 31,917 31,917 18,269,590 (22,166) 18,247,424 (1,205,448) 1,967,083 (527,113) 234,522 18,481,946
8,443 8,443 8,443 (1,736,009) (182,433) (182,433) (1,918,442) (1,736,009) (173,990) (173,990) (1,909,999) 31,917 58,678 58,678 90,595 18,481,946 18,481,946 14,127 (1,205,448) 2,181,341 (438,759) (115,312) 435,949 18,917,895
103 103 103 (21,122) (2,220) (2,220) (23,342) (21,122) (2,117) (2,117) (23,239) 389 714 714 1,103 224,869 224,869 172 (14,667) 26,540 (5,338) (1,403) 5,304 $230,173
27
28
cost or realizable value, cost being determined by the average cost method. (3)Depreciation and amortization of major assets (a)Property, plant and equipment: The Company adopted the declining-balance method of depreciation using rates based on the estimated useful lives of the assets (depreciation of buildings acquired by the domestic company after April 1, 1998 is computed using the straight-line method of depreciation). Depreciation of property, plant and equipment held by at the foreign consolidated subsidiaries is computed using the straight-line method over their estimated useful lives. Useful lives of major classes of property, plant and equipment are as follows: Buildings and structures 3 to 65 years Machinery, equipment and vehicles 3 to 7 years Tools, furniture and fixtures 2 to 20 years (b)Intangible assets: The Company has adopted the straight-line method for computing amortization of intangible assets. Software capitalized for in-house use is amortized based on the straight-line method over an expected useful economic life of 5 years. Software capitalized for sale is amortized based on the estimated volume of sales, with the minimum amortization amount calculated based on a useful life of 3 years. (4)Basis of provision (a)Allowance for doubtful accounts: An allowance for doubtful accounts is provided in an amount sufficient to cover probable losses on collection of notes and accounts receivable. The allowance for doubtful accounts is computed based on the calculated historical bad debt experience ratio for trade receivables, in addition to the estimated amount of doubtful receivables on an individual account basis. Foreign consolidated subsidiaries mainly compute the allowance for doubtful accounts based on the estimated amount of doubtful receivables on an individual account basis. (b)Provision for bonuses: The provision for bonuses to employees is provided based on the estimated amounts expected to be paid to employees. (c)Provision for directors and statutory corporate auditors bonuses: The provision for directors and statutory corporate auditors bonuses is provided based on the estimated amounts expected to be paid to directors and statutory corporate auditors. (d)Provision for retirement benefits: The provision for retirement benefits for employees is provided based on the actuarially calculated present value of projected benefit obligations except for, as permitted under the accounting standard for employees retirement benefits, the unrecognized actuarial gains or losses. The unrecognized actuarial gains or losses are amortized on a straight-line basis over 5
Net cash provided by (used in) operating activities : Income before income taxes Depreciation and amortization Share-based compensation expenses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for directors' bonuses Increase (decrease) in provision for loss on disaster Increase (decrease) in provision for loss on business liquidation Increase (decrease) in provision for retirement benefits Increase (decrease) in provision for directors' retirement benefits Loss on adjustment for changes of accounting standard for asset retirement obligations Interest and dividends income Interest expenses Loss (gain) on valuation of investment securities Foreign exchange losses (gains) Loss (gain) on sales and retirement of noncurrent assets Decrease (increase) in notes and accounts receivable-trade Decrease (increase) in inventories Increase (decrease) in notes and accounts payable-trade Others, net Sub total Interest and dividends income received Interest expenses paid Settlement package paid Payments for loss on disaster Payments for loss on business liquidation Payment for withdrawal from employees' pension fund Income taxes paid Income taxes (paid) refund Others, net Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities: Purchase of property, plant and equipment Purchase of intangible assets Purchase of software Purchase of investment securities Proceeds from sales of noncurrent assets Payments for acquisition of business Payments for lease and guarantee deposits Proceeds from collection of lease and guarantee deposits Others, net Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities: Proceeds from issuance of common stock Purchase of treasury stock Cash dividends paid Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (Note 9)
2,952,508 749,373 31,917 (4,589) (35,100) 327 197,212 25,020 43,168 (452,089) 28,578 (73,246) 9,262 20,000 71,197 12,407 363,288 (958,113) (877,947) 371,119 2,474,292 73,210 (9,474) (21,113) (1,337,958) 1,178,957 (409,386) (781,514) 6,606 (291,637) (13,791) 19,680 (1,470,042) (1,202,132) (1,202,132) (402,076) (1,895,293) 12,350,113 10,454,820
3,504,537 1,068,140 58,678 176 338,217 59,963 33,404 (28,579) 8,229 (50,149) 11,471 (3,115,094) (1,371,687) 4,346,111 1,135,384 5,998,801 27,933 (8,242) (144,102) (24,696) (253,775) (696,692) (18,684) 4,880,543 (526,039) (47,906) (865,288) (167,703) 31,129 (125,811) 3,596 643 (1,697,379) 14,049 (439,603) (1,201,162) (1,626,716) (41,395) 1,515,053 10,454,820 11,969,873
$42,639 12,996 714 2 4,115 730 406 (348) 100 (610) 140 (37,901) (16,689) 52,879 13,814 72,987 340 (100) (1,753) (300) (3,088) (8,477) (227) 59,382 (6,400) (583) (10,528) (2,040) 379 (1,531) 44 7 (20,652) 171 (5,349) (14,614) (19,792) (504) 18,434 127,203 $145,637
29
30
years beginning in the year after they arise.Actuarial gains or losses are recognized as incurred in the foreign consolidated subsidiaries. (5)Foreign currency translation The Companys functional currency is Japanese yen. Assets and liabilities denominated in foreign currency as of year-end are translated at the current exchange rate. Exchange gains and losses resulting from foreign currency transactions and the translation of assets and liabilities denominated in foreign currencies are included in the consolidated statements of income. All assets, liabilities, income and expense accounts of foreign subsidiaries are translated using the current exchange rates at the respective balance sheet dates. Foreign currency translation adjustments resulting from such procedures are recorded in the consolidated balance sheets as a separate component of net assets. (6)Amortization of goodwill Goodwill is amortized on a straight-line basis over its remaining useful life. (7)Cash and cash equivalents Cash and cash equivalents include all highly liquid investments, generally with original maturities of three months or less, those that are readily convertible to known amounts of cash and, thus, present an insignificant risk of changes in value. (8)Consumption taxes The consumption tax withheld upon sale and consumption tax paid by the Companies on their purchases of goods and services is not included in revenue and cost or expense items in the accompanying consolidated statements of income.
revenue at the point of arrival at the customers location rather than upon shipment from the beginning of fiscal year ended March 31, 2012. This change was made to more accurately present profit and loss as we concluded that it was more appropriate to recognize revenue at the time of customers receipt as a result of the current international harmonization of accounting treatments and the reviewof our company structure by the introduction of new accounting system. This change has been retroactively applied and the financial statements for the year ended March 31, 2011 were restated. As a result, in consolidated balance sheets as of March 31, 2011 notes and accounts receivable-trade and retained earnings decreased by 106,692 thousand and 41,585 thousand, respectively, and merchandise and finished goods and deferred tax assets (current assets) increased by 37,727 thousand and 27,380 thousand, respectively. Also, in consolidated statements of income for the year ended March 31, 2011 net sales and cost of sales decreased by 44,818 thousand and 12,620 thousand, operating income, ordinary income and income before income taxes decreased by 19,418 thousand, respectively. In consolidated statements of comprehensive income for the year ended March 31, 2011 income before tax and minority interests and comprehensive income decreased by 19,418 thousand, respectively. In consolidated statements of cash flows for the year ended March 31, 2011 income before income taxes decreased by 32,198 thousand, decrease (increase) in notes and accounts receivable-trade increased by 44,818 thousand and decrease (increase) in inventories decreased by 12,620 thousand. Due to the cumulative effect of change in accounting policy which was reflected to net assets balance at the beginning of fiscal year ended March 31, 2011, the retained earnings balance at the beginning in consolidated statements of changes in net assets for the year ended March 31, 2012 decreased by 22,166 thousand. The effect on earnings per share information is presented in Note 21.
24 issued on December 4, 2009) and Guidance on Accounting Standard for Accounting Changes and Error Corrections (Accounting Standards Board of Japan Guidance No. 24 issued on December 4, 2009) for accounting changes and error corrections conducted from the fiscal year ended March 31, 2012.
2,000,000 2,000,000
2,000,000 2,000,000
$24,334 $24,334
(2)Notes maturing as of the fiscal year end Notes maturing as of the fiscal year end are settled on the clearance date. Therefore, the following notes which matured as of the fiscal year end have been included in the fiscal year end balance sheets due to the holiday of financial institutions.
1,900 118,622
$23 1,443
5. Additional information:
(Accounting for accounting changes and error corrections) The Company has adopted Accounting Standard for Accounting Changes and Error Corrections (Accounting Standards Board of Japan Statement No.
31
32
Dividend payments approved at the board meeting held on April 27, 2011 are as follows:
(Approval by) Type of shares Total amount of dividends (Thousands of yen) 1,205,448 Dividends per share (yen) Record date Effective date
Year ended Year ended Year ended March 31, 2011 March 31, 2012 March 31, 2012
Buildings and structures Machinery, equipment and vehicles Tools, furniture and fixtures Software Other intangible assets Total
$3 8 37 19 64 $131
3,000
June 2, 2011
(Approval by)
Type of shares
Record date
Effective date
Year ended Year ended Year ended March 31, 2011 March 31, 2012 March 31, 2012
(7)Loss on withdrawal from employee s pension fund The loss on withdrawal from employee s pension fund relates to expenses which were recognized in connection with the withdrawal from the Saitama prefectural industrial park multi employer plan to avoid the asset management risk of our pension fund in the future. (8)Office transfer expenses Office transfer expenses relate to expenses incurred for the transfer of Tokyo branch office.
Number of shares as of March 31, 2010 (Unit: shares) Number of shares increased during the accounting period ended March 31, 2011 (Unit: shares) Number of shares decreased during the accounting period ended March 31, 2011 (Unit: shares)
421,816 421,816
20,000
20,000
$37
June 2, 2011
(b)Dividends of which record date is attributable to the accounting period ended March 31, 2011 and 2012, respectively, but are effective after said accounting period. The Company resolved approval at the board meeting held on April 27, 2011 as follows:
(Approval by) Type of shares Total amount of dividends (Thousands of yen) 1,205,448 Dividends per share (yen) Record date Effective date
Provision for allowance for doubtful accounts Salaries Pension expenses Provision for bonuses Provision for directors and statutory corporate auditors bonuses Research and development expenses
421,816 421,816
20,000
20,000
Common stock
Total
3,000
June 2, 2011
1,290,576
1,842,439
22,417
Number of shares as of March 31, 2011 (Unit: shares) Number of shares increased during the accounting period ended March 31, 2012 (Unit: shares) Number of shares decreased during the accounting period ended March 31, 2012 (Unit: shares)
421,816 421,816
20,000
20,000
(3)Research and development expenditures Research and development expenditures are included in selling, general and administrative expenses. Such expenses amounted to 1,290,576 thousand and 1,842,439 thousand ($22,417 thousand) for the years ended March 31, 2011 and 2012, respectively. (4)Gain on sales of noncurrent assets
Thousands of yen Thousands of U.S. dollars
800
800
5,000
5,000
The Company resolved approval at the board meeting held on April 26, 2012 as follows:
(Approval by) Type of shares Total amount of dividends (Thousands of yen) 1,192,848 Dividends per share (yen) Record date Effective date
422,616 422,616
25,000
25,000
3,000
June 4, 2012
Year ended Year ended Year ended March 31, 2011 March 31, 2012 March 31, 2012
1,283 54 1,337
$15 1 $16
Valuation difference on available-for-sale securities: Changes of items during the period Reclassification adjustments Net change during the period Foreign currency translation adjustment: Changes of items during the period Total other comprehensive income, Before income tax effect Income tax effect Total other comprehensive income
Notes: a) The increase in the number of shares outstanding was due to exercises of stock options. b) The increase in the number of treasury stock was due to the purchase of treasury stock based on the resolution of board of directors.
(Approval by)
Type of shares
Record date
Effective date
(2)Matters related to subscription rights to shares Balance of subscription rights to shares (stock options) as of March 31, 2011 and 2012 is as follows. The first date of the exercise period of these rights has not yet arrived as of March 31, 2012.
Thousands of yen 2011 2012 Thousands of U.S. dollars 2012
$37
June 4, 2012
Year ended Year ended Year ended March 31, 2011 March 31, 2012 March 31, 2012
31,917
90,595
$1,103
Machinery, equipment and vehicles Tools, furniture and fixtures Software Total
$10 15 0 $25
Valuation difference on available-for sale securities: Foreign currency translation adjustment: Total other comprehensive income
(4,507) (4,507)
Thousands of U.S. dollars March 31, 2012 Before Income tax effect Income tax effect Net of Imcome tax effect
(3)Matters related to dividends (a)Dividend payments Dividend payments approved at the board meeting held on April 30, 2010 are as follows:
(Approval by) Type of shares Total amount of dividends (Thousands of yen) 1,205,448 Dividends per share (yen) Record date Effective date
2011
2012
$145,637 $145,637
Valuation difference on available-for sale securities: Foreign currency translation adjustment: Total other comprehensive income
($55) ($55)
3,000
June 3, 2010
33
34
11. Leases:
Finance lease transactions that do not transfer ownership of the assets have been accounted for as ordinary sale and purchase transactions. Such contracts, however, have not been entered for the fiscal year ended March 31, 2011 and 2012. Finance lease transactions that do not transfer ownership of the assets which commenced before April 1, 2008, have been accounted for using the same method as for operating leases continuously. Such lease transactions of the Company and its subsidiaries, as a lessee, are shown below: (1)Finance leases, which do not transfer ownership of the assets to the lessee and are accounted for as operating leases, are as follows: (a)Acquisition costs of leased assets under finance leases are as follows:
other operating costs. Interest expense equivalents are allocated using the interest method over the lease terms. (4)Minimum lease payments under non-cancelable operating leases are as follows:
Thousands of yen 2011 2012 Thousands of U.S. dollars 2012
(c) Supplementary information concerning the fair value of financial instruments: The amount of derivatives contracts in the Notes to "Derivatives Transaction" is the nominal value of derivatives contracts or the calculated notional amount only, and it does not show the size of market risk relating to the derivative transaction itself. (2)Fair value of financial instruments The following table presents the carrying amounts recorded in the consolidated balance sheets as of March 31, 2011 and 2012, estimated fair values of financial instruments and the differences. Financial instruments deemed extremely difficult to calculate the current market value are not included. (See Note: b)
Thousands of yen March 31, 2011
Due to expected settlement with in a short period of time, we estimate that the carrying amount is equivalent to market value. Derivatives transaction See Note 13 Derivatives . b) Financial instruments per which there is no readily available information are reported at their carrying value as of March 31, 2011 and 2012 are as follows.
Thousands of yen 2011 2012 Thousands of U.S. dollars 2012
Due within one year Due after one year Total minimum lease payments
Unlisted securities
14,778
195,115
$2,374
Carrying Amount
Fair value
Difference
2,705
2,573
132
There are no applicable items for the year ended March 31, 2012, as the lease term of lease contract which was subject to disclosure was expired. (b)Future lease payments under finance leases are as follows:
Thousands of yen 2011 2012 Thousands of U.S. dollars 2012
(1)Matters relating to financial instruments (a)Policy for financial instruments: The Group's financing is mainly covered by internal fund, which provides stable and low-cost financing. However, some short-term financial needs and working capital needs may be covered by shor t-term loans. Long-term financing is also obtained based on demand by selecting the appropriate vehicle such as the issuance of new bond, or issuance of new shares. Investment of surplus fund is limited in relatively secure financial instruments with high liquidity and high credit ratings. The derivatives are used only for the purpose to avoid a risk of future currency fluctuations, and any speculative trading is strictly prohibited. (b)Content of financial instruments and their risks and risk management scheme: Notes and accounts receivable trade are exposed to the credit risk of customers. Such risks are controlled by the scheme to keep track of the due date and outstanding balance for every customer, and check customer's credit status on a regular basis according to the Company s credit limit management policy. Notes and account payable trade are mostly due within one year. Short-term loans payable account is primarily utilized for financing relating to business transactions. Liquidity risk for the operating payables and the short-term loans payable is controlled by a monthly cash flow forecast. As to derivative transactions, in order to hedge the risk of fluctuation in foreign currency monetary assets and liabilities, the Company uses forward exchange contracts. For execution and management of derivative transactions, the finance department is responsible for exe cu ting su ch tr a ns ac tions up on a n approval from authorized personnel in accordance with the Companys derivatives transaction policy that defines approval authority and the trading limit of transactions. In addition, to reduce the risk of default on derivatives trading, the Company limits trading counterparties to high rated financial institutions only.
These financial instruments do not have readily available market prices to calculate the current market value, thus have been omitted from fair market value presentation in a). c)Redemption schedule of financial instruments after year ended March 31, 2011 and 2012.
Thousands of yen March 31, 2011
10,454,820 10,454,820 (1)Cash and deposits 4,216,958 (2)Notes and accounts receivable - trade 4,216,958 14,671,778 14,671,778 Total assets 3,994,330 (1)Notes and accounts payable - trade 3,994,330 (2)Short-term loans payable 600,000 600,000 (3)Income taxes payable 221,326 221,326 Total liabilities 4,815,656 4,815,656 Derivatives (*) (32,113) (32,113)
Thousands of yen March 31, 2012 Carrying Amount Fair value Difference
Due within Due over one Due over 5 years Due Over one year year to 5 years to 10 years 10 years
Due within one year Due after more than one year
482 482
$$-
(1)Cash and deposits 11,969,873 11,969,873 7,174,640 (2)Notes and accounts receivable - trade 7,174,640 Total assets 19,144,513 19,144,513 8,307,536 (1)Notes and accounts payable - trade 8,307,536 (2)Short-term loans payable 600,000 600,000 (3)Income taxes payable 1,375,072 1,375,072 Total liabilities 10,282,608 10,282,608 Derivatives (*) (60,320) (60,320)
Thousands of yen March 31, 2012 Due within Due over one Due over 5 years Due Over one year year to 5 years to 10 years 10 years
(c)Lease payments and amounts representing depreciation and interest are as follows:
Thousands of yen 2011 2012 Thousands of U.S. dollars 2012
Thousands of U.S. dollars (Note 1) March 31, 2012 Carrying Amount Fair value Difference
1,654 575 82
482 132 17
$6 2 0
(2)Calculation method of depreciation equivalents Depreciation equivalents are based on the annual declining-balance method depreciation for tangible fixed assets over the lease terms with residual value of 10%. To calculate the depreciation equivalents, the annual depreciation expense is multiplied by 10 and divided by 9. The straight-line method for the intangible assets over the lease terms without residual value. (3)Allocation of interest expense equivalents T h e d i f f e r e n c e b e t we e n to t a l l e a s e ex p e n s e s expected to be paid over the life a lease and the capitalized lease asset is comprised of interest expense equivalents and insurance, maintenance and certain
(1)Cash and deposits (2)Notes and accounts receivable - trade Total assets (1)Notes and accounts payable - trade (2)Short-term loans payable (3)Income taxes payable Total liabilities Derivatives (*)
Thousands of U.S. dollars (Note 1) March 31, 2012 Due within Due over one Due over 5 years Due Over one year year to 5 years to 10 years 10 years
$ $ -
$ $ -
$ $ -
(*) Derivatives are presented in net amount of receivables and payables. Notes: Matters related to method for calculating market value of financial instruments and securities and derivatives transactions.
Assets (1)Cash and deposits, (2)notes and accounts receivable Due to expected settlement with in a short period of time, we estimate that the carrying amount is equivalent to market value. Liabilities (1)Notes and accounts payable trade, (2)short-term loans payable and (3)income taxes payable
d)Change in accounting policy The Company has changed the timing of revenue recognition for the Company s standard products to recognize revenue at the point of arrival at the customer s location rather than upon shipment from the beginning of fiscal year ended March 31, 2012. This change has been retroactively applied and notes and accounts receivable-trade for the year ended March 31, 2011 were restated.
35
36
Thousands of U.S. dollars March 31, 2012 Contract amount Fair value Unrealized gain/ (loss)
The components of the net periodic pension expense for the years ended March 31, 2011 and 2012 are as follows:
Thousands of yen Thousands of U.S. dollars 2012
Foreign exchange forward contracts: To sell Euros To buy U.S. dollars Total
$19,545 2,015 $-
($738) 4 ($734)
($738) 4 ($734) (1)Service cost (2)Interest cost (3)Recognized actuarial loss (4)Contribution (5)Extra retirement payments (6)Net periodic pension expense
2011
2012
Outstanding at March 31, 2011 Granted Exercised Expired Outstanding at March 31, 2012
2,930 215 2,715 From August 12, 2012 to August 11, 2015
The assumptions used as of March 31, 2011 and 2012 are as follows:
2011 2012
(1)Discount rate (2)Method of attributing the projected benefits to periods of service (3)Amortization of unrecognized actuarial differences
96,310 -
35,420 25,674
14. Derivatives:
All derivative transactions are entered into to hedge foreign currency exposures within the Company s business. Accordingly, the market risk in these derivatives is offset by opposite movements in the value of hedged assets or liabilities. The Company does not hold derivatives for trading or speculative purposes. Because the counterpar ties to these derivatives are limited to major international finance institutions, the Company does not anticipate any losses arising from credit risk. Derivative transactions entered into by the Company have been executed in accordance with internal policies, which regulate the authorization and credit limit amount of transactions. The amount of the derivative contracts does not necessarily indicate the significance of the risk. Certain information on outstanding derivative contracts is shown below.
Thousands of yen March 31, 2011 Contract amount Fair value Unrealized gain/ (loss)
(3) Method for estimating fair market price related to stock options (a) The Black-Scholes Model is used for estimating the fair market price of stock options (b) Key assumptions in valuation model:
Stock price volatility Expected average life Expected dividend Risk-free interest rate 56.091% 3.5 years 3,000 per share 0.254%
3,301 28,616
6,660 52,018
$81 633
The amount of pension assets The amount of benefit obligations under pension funding programs Net
6,570,527 (7,126,403)
Notes: i)Stock price volatility is determined based on stock market performance from February 2008 to August 2011. ii)Since there is no accumulation of enough data and its difficult to make reasonable estimate of average life, its estimated by way of exercising at the middle of the exercise period. iii)Expected dividend is based on cash dividend for the year ended March 2011. iv)Risk-free interest rate is the yield of government bonds for expected life. Regarding the method for estimating the number of effective rights of stock options, the number of expired options is estimated based upon the past attrition rate.
(555,876)
Foreign exchange forward contracts: To sell U.S. dollars To sell Euros To buy U.S. dollars Total
The ratio of the number of company s employees to total employees in the multi-employer pension plan as of March 31, 2011 was 18.8%. The provision for retirement benefits for employees as of March 31, 2011 and 2012 can be analyzed as follows:
Person granted
Thousands of yen March 31, 2011 Contract amount Fair value Unrealized gain/ (loss)
November 8, 2002 Employees 113 Subsidiaries executive officers6 Subsidiaries employees 33 June 24, 2010 Directors 6 Executive officers 3 Employees 70 Subsidiaries directors 3 Subsidiaries employees 63 June 23, 2011 Employees 55 Subsidiaries employees 50
19,160
2,985
1,160
23,305
(1)Projected benefit obligation (511,576) Foreign exchange forward contracts: To sell Euros To buy U.S. dollars Total 1,606,427 165,640 (60,617) 297 (60,320) (60,617) 297 (60,320) (2)Unrecognized actuarial loss (3)Provision for retirement benefits for employees (1)+(2) 32,459 (479,117)
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38
(2)Reconciliation between the statutory tax rate and the effective income tax rate
Deferred tax assets: Inventory-inter-company profit Accrued expenses Accrued bonuses Accrued retirement benefits Software development costs Accrued severance indemnities for directors and statutory corporate auditors Enterprise tax Account receivables Share-based compensation expenses Inventories Accrued vacation payable Net loss carried forward for tax purposes Others Accounting Policy Change in Revenue Recognition (Note 2) Total deferred tax assets 226,677 71,078 87,462 186,827 44,611 156,933 18,035 51,771 12,671 41,379 11,965 18,212 98,414 27,380 1,053,415 521,406 205,163 200,834 177,918 149,484 130,464 86,619 51,201 31,527 20,166 15,773 15,082 83,514 1,689,151 $6,344 2,496 2,444 2,165 1,819 1,587 1,054 623 384 245 192 183 1,016 20,552
Taxes on undistributed earnings of overseas Subsidiaries Non deductible expenses for tax purposes Equalization tax Difference in foreign subsidiaries tax rate Adjustment of prior year income taxes related to transfer price Others Effective income tax rate
The reconciliation between the statutory tax rate and the effective income tax rate in the consolidated statements of income for the year ended March 31, 2012 is omitted because the difference of both rates is less than 5% of statutory effective tax rate. (3)Adjustments of deferred tax assets and liabilities amounts according to the change of income tax rate On December 2, 2011, Amendment to Income Tax Laws to Reform Tax Rates Corresponding to the Change in Social Economy Structures (Law Number 114) and Special Measures to Secure Financial Resources to Implement the Restoration from 2011 Tohoku Earthquake (Law Number 117) were issued and, effective from the fiscal years beginning April 1, 2012, the corporate income taxes was consequently reduced whereas temporary special purpose tax was added on for the recover y from the ear thquake damage. Accordingly, for estimating deferred tax assets and liabilities, the effective tax rates to be applied on the temporary differences expected to be settled in the three fiscal years beginning April 1, 2012 and from the fiscal years beginning April 1, 2015 will be reduced to 37.1% and 34.8%, respectively, from the current effective tax rate of 39.7%. This tax rate change resulted in the net deferred tax assets (net of deferred tax liabilities) to be decreased by 80,737 thousand ( $ 982 thousand ) , income taxes-deferred increased by 81,371 thousand ($990 thousand), and valuation difference on available-forsale securities increased by 634 thousand ($8 thousand).
(3)Increase and decrease of asset retirement obligations Increase and decrease of the amount of asset retirement obligations during the year ended March 31, 2011 and 2012 is as follows.
Thousands of Thousands of Thousands of yen yen U.S. dollars 2011 2011 2011
ii)Component business: Components and modules (Electronic pen, multi-touch sensor, touch panel etc.) (b)Methods for calculating the amounts of net sales, operating income (loss), assets and other items by reportable segment The accounting for reportable segments is the same as specified in Summary of significant accounting policies. (c) Information regarding net sales, operating income (loss), assets and other items by reportable segment for the year ended March 31, 2011 and 2012 are as follows:
Balance at the beginning of current period (Note) Increase by the acquisition of property, plant and equipment Interest expenses Increase by the change in estimation Others Balance at the end of current period
Deferred tax liabilities: Undistributed earnings of overseas subsidiaries Fixed assets of overseas subsidiaries Others Total deferred tax liabilities (464,894) (46,860) (2,490) (514,244) (547,422) (59,126) (7,381) (613,929) (6,660) (719) (91) (7,470)
539,171
1,075,222
$13,082
(Note 1) Net deferred tax assets are expressed in Consolidated Balance Sheet for the years ended March 31, 2011 and 2012 as follows.
Thousands of U.S. dollars 2012
Note: Balance at the beginning of current period is the balance as of the beginning of the year ended March 31, 2011 adjusted by adopting Accounting Standards for Asset Retirement Obligations (Accounting Standards Board of Japan Statement No. 18 issued on March 31, 2008) and Guidance on Accounting Standards for Asset Retirement Obligations (Accounting Standards Board of Japan Guidance No. 21 issued on March 31, 2008). (4)Change in estimation of asset retirement obligations During the year ended March 31, 2012 the Company made the decision to transfer its Tokyo branch office. Accordingly the company recalculated the estimation of restitution cost to reflect the change in the period of the restitution. The amount of 26,964 thousand ( $ 329 thousand ) consequently increased in the change of the estimation is included in asset retirement obligations as Increase by the change in estimation .
Thousands of yen Year ended March 31, 2011 Reportable segments Tablet Component Total Net sales: (1)Outside customers 26,465,928 (2)Inter-segment Total 26,465,928 Operating income (loss): 5,629,951 Assets: Others (Note a) Total Adjustments Consolidated (Note b) (Note c)
- 33,030,359 - 33,030,359
Current assets Deferred tax assets Noncurrent assets Deferred tax assets Current liabilities Deferred tax liabilities Noncurrent liabilities Deferred tax liabilities
(Note 2) The Company has changed the timing of revenue recognition for the Company s standard products to recognize revenue at the point of arrival at the customer s location rather than upon shipment from the beginning of fiscal year ended March 31, 2012. The change has been retroactively applied to the financial statements for the year ended March 31, 2011.
Other items: Depreciation 503,744 Amortization of goodwill Increase or decrease of property, plant and equipment and intngible assets 861,273
78,513 21,536
582,257 21,536
42,134 -
624,391 21,536
103,446 -
727,837 21,536
54,938
916,211
22,068
938,279
652,627
1,590,906
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40
Thousands of yen Year ended March 31, 2012 Reportable segments Tablet Component Total Net sales: (1)Outside customers 28,507,159 11,682,921 40,190,080 (2)Inter-segment Total 28,507,159 11,682,921 40,190,080 Operating income (loss): 5,124,727 1,090,508 6,215,235 Assets: 17,712,705 5,594,110 23,306,815 Others (Note a) Total Adjustments Consolidated (Note b) (Note c)
Information regarding net sales by geography as of March 31, 2011 and 2012 are as follows:
Thousands of yen Year ended March 31, 2011 Japan Net sales U.S.A Europe Asia/ Oceania Others Total
(5)Information regarding gain on negative goodwill by reportable segment There were no applicable transactions under this category for the year ended March 31, 2011 and year ended March 31, 2012.
Component
There were no applicable transactions under this category for the year ended March 31, 2011 and year ended March 31, 2012.
Other items: Depreciation 745,383 Amortization of goodwill Increase or decrease of property, plant and equipment and intangible assets
719,457 33,030,359
142,146 21,651
887,529 21,651
42,850 -
930,379 21,651
Component
869,220
242,140
1,111,360
70,500
1,181,860
199,518
Others
Related segment
Thousands of U.S. dollars Year ended March 31, 2012 Reportable segments Tablet Component Total Net sales: (1)Outside customers $346,845 $142,145 $488,990 (2)Inter-segment Total $346,845 $142,145 $488,990 Operating income (loss): $62,352 Assets: $215,509 $13,268 $75,620 Others (Note a) Total Adjustments Consolidated (Note b) (Note c)
Net sales
701,676 40,705,578
Component
2011
March 31 2012
(3)Information regarding the impairment loss of noncurrent assets by reportable segment Total $8,536 $495,262
U.S.A
Europe
Net assets per share Net income per share Diluted net income per share
Others
$111,307 $105,253
$76,474 ($26,985)
There were no applicable transactions under this category for the year ended March 31, 2011, and the year ended March 31, 2012. (4)Information regarding amortization and unamortized balance of goodwill by reportable segment Unamortized balance of goodwill by segment as of March 31, 2011 and 2012 are as follows:
Note: The basis for calculating net assets per share is as follows.
$68,063 $283,572
Other items: Depreciation $9,069 Amortization of goodwill Increase or decrease of property, plant and equipment and intangible assets
Information regarding property, plant and equipment by geography as of March 31, 2011 and 2012 are as follows:
Thousands of yen
Total net assets Amount deducted from total net assets (subscription rights to shares) Net assets available to common shareholders
18,481,946 18,917,895
$230,173
10,576
2,946
13,522
858
14,380
2,427
16,807 Thousands of yen As of March 31, 2011 Total Unamortized balance of goodwill Tablet Component Others Elimination/ Corporate Total
31,917 18,450,029
90,595 18,827,300
1,103 229,070
Notes: a)Others for the year ended March 31, 2011 consist of Software and DJ device businesses, which are not included in reportable segments. Others for the year ended March 31, 2012 consist of Sof tware businesses, which are not included in reportable segments. b)Adjustments mainly include expenses incurred in administrative divisions such as finance division and business administration division, which do not belong to reportable segments. c)Operating income (loss) is adjusted to consolidated operating income. d)The Company has changed the timing of revenue recognition for the Company s standard products to recognize revenue at the point of arrival at the customer s location rather than upon shipment from the beginning of fiscal year ended March 31, 2012. This change has been retroactively applied and segment information for the year ended March 31, 2011 was restated. (2)Related information (a)Information by product and service Information by product and service is omitted as the similar information is presented in Segment information section.
As of March 31, 2011 Japan Property, plant and equipment North AmericaA Europe Asia/ Oceania
2,840,521
538,068
145,217
111,473
3,635,279
68,554
68,554
The number of common shares at the end of each fiscal year that was used to calculate net assets per share (shares)
401,816
397,616
Thousands of yen As of March 31, 2012 Japan Property, plant and equipment North AmericaA Europe Asia/ Oceania Total Unamortized balance of goodwill Tablet
Thousands of yen As of March 31, 2012 Component Others Elimination/ Corporate Total
Note: The basis for calculating basic and diluted earnings per share is as follows.
2,770,789
505,663
116,655
224,005
3,617,112
46,905
46,905
Thousands of dollars As of March 31, 2012 Japan Property, plant and equipment North AmericaA Europe Asia/ Oceania Total Unamortized balance of goodwill Tablet
Thousands of dollars As of March 31, 2012 Component Others Elimination/ Corporate Total
$33,712
$6,152
$1,419
$2,726
$44,009
$-
$571
$-
$-
$571
Note: Information regarding amortization of goodwill is omitted as the similar information is presented in Segment information section.
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42
Basic net income and share information Net income Net income not available to common shareholders Net income available to common shareholders Weighted-average number of shares outstanding (shares) Diluted net income and share information Amount of net income adjustment Increase in the number of common shares outstanding during each fiscal year that would result in exercising options to issue new shares (shares) Summary and number of shares not included in calculating diluted earnings per share due to no effect of dilution 1,967,083 1,967,083 401,816 2,181,341 2,181,341 399,224 $26,540 26,540 -
2011 were restated. As a result, net assets per share, net income per share and diluted net income per share for the year ended March 31, 2011 decreased by 103.49 yen, 48.33 yen and 48.23 yen, respectively.
803
387
2,715
(Changes in accounting policies) 1. Accounting for earnings per share As stated in Note No. 3 Changes in accounting principles and policies , the Company has adopted Accounting Standard for Earnings Per Share (Accounting Standards Board of Japan Statement No. 2 issued on June 30, 2010) and Guidance on Accounting Standard for Earnings Per Share (Accounting Standards Board of Japan Guidance No. 4 issued on June 30, 2010) from the fiscal year ended March 31, 2012. In accordance with the guidance, the Company has changed the method of calculating diluted earnings per share. In this revised method, a portion of the fair value of stock options, which relates to the services to be rendered in the future, is included in the assumed proceeds by the exercise of stock options. This change was retroactively applied, and the diluted earnings per share for the year ended March 31, 2011 has been restated. If these new accounting standards had not been applied, the amount of diluted net income per share for the year ended March 31, 2011 would have been 4,880.63 yen. 2. Changes in revenue recognition As stated in Note No. 3 Changes in accounting principles and policies , the Company has changed the timing of revenue recognition for the Company s standard products to recognize revenue at the point of arrival at the customer s location rather than upon shipment from the beginning of fiscal year ended March 31, 2012. This change has been retroactively applied and net assets per share, net income per share and diluted net income per share for the year ended March 31,
43
44
Corporate Data
Trade Name Wacom Co., Ltd. Established July 12, 1983 Capital 4,203 million (As of March 31, 2012) Consolidated: 785 Non-consolidated: 397 (As of March 31, 2012) 1. Brand Business Development, manufacture, sales of computer input devices Professional products Consumer products Business products 2. Component Business Development, manufacture and sales of smart phone, computer, and other device input components Pen sensor components Touch sensor components 3. Other Business Development, manufacture, sales of CAD solution and others CAD Software for electrical and mechanical engineering Banks Mizuho Bank, Ltd. The Bank of Tokyo-Mitsubishi UFJ, Ltd. Saitama Resona Bank, Ltd. Head Office/ 2-510-1 Toyonodai Kazo-shi, Factory Saitama 349-1148, Japan TEL: +81-480-78-1211 (Main) FAX: +81-480-78-1220 Branch/ Offices Tokyo Branch Sumitomo Fudosan Shinjuku Grand Tower 31F, 8-17-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-6131, Japan Nagoya Office Origin Nishiki Bldg. 8th Floor, 1-6-17 Nishiki Naka-ku, Nagoya-shi, Aichi 460-0003, Japan Osaka Office Shogyo 2nd Bldg. 6th Floor, 5-4-9 Toyosaki Kita-ku, Osaka-shi, Osaka 531-0072, Japan Fukuoka Office Hakata Ekimae Daini Bldg. 5th Floor, 2-6-23 Hakataeki Higashi, Hakata-ku Fukuoka-shi, Fukuoka 812-0013, Japan
Investor Information
Stock Exchange Listing
Tokyo Stock Exchange First Section (Trade code 6727)
Employees
Share Data (As of March 31, 2012) Total number of shares to be issued Total number of issued shares Total number of shareholders Major Shareholders (As of March 31, 2012)
Business Segments
Name of shareholder
JP Morgan Chase Bank 385174 Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) Eto Yoji Office Yoji Eto Wilnau Co. State Street Bank and Trust Company 505103 Masahiko Yamada The Chase Manhattan Bank, N. A. London SL Omnibus Account MASA-JAPANESE EQUITY
International Wacom Technology Corporation (U.S.A.) Wacom Technology Services, Corp. (U.S.A.)* Affiliates 1311 SE Cardinal Court, Vancouver, WA 98683, U.S.A.
*The Subsidiary of Wacom Technology Corporation for Internet retailing
Wacom Europe GmbH (Germany) Europark Fichtenhain A9 D-47807, Krefeld, Germany Wacom China Corporation (China) Unit 1103, Beijing IFC West Tower, No. 8 Jianwai Ave., Chaoyang District, Beijing, China Wacom Korea Co., Ltd. (Korea) Rm #1211, 12F, KGIT Sangam Center, 402 worldcup bukro, Mapo-gu, Seoul 121-913, Korea Wacom Australia Pty. Ltd. (Australia) Unit 8, Stage 1 Cumberland Green 2-8 South Street, Rydalmere NSW 2116 Australia 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 Pvt. Ltd. (India) 2nd Floor, Elegance Tower, District Centre, Mathura Road, New Delhi 110025, India
Wacom has 25,000 shares of treasury stock at the end of the fiscal year, which isn't included in the above list. Percentage of voting rights are calculated after deduction of treasury stock.
5.92%
25,000 shares, <1 shareholder> Foreign enterprises, etc.
Financial institutions
17.60%
74,396 shares, <29 shareholders>
22.48%
94,994 shares, <134 shareholders> Securities companies
1.02%
Other enterprises
422,616
shares
8.17%
34,507 shares, <108 shareholders>
22,264
shareholders
Individuals and other shareholders
44.81%
189,410 shares, <21,958 shareholders>
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