Business Updates & Growth Strategies

Size: px

Start display at page:

Download "Business Updates & Growth Strategies"

Charleen Holt
6 years ago
Views:

Wacom enhances the life experience by creating harmony between people and

4 Wacom Co., Ltd. Head Office , Toyonodai, Kazo-shi, Saitama, Japan Founded July 12, 1983 Paid-in capital 4.2 bn. JPY (as of Dec. 31, 2012) President & CEO Masahiko Yamada Revenue 40.7 bn. JPY (FY 3/2012) Employees 886 (Consolidated), 412 (Parent) (as of Dec. 31, 2012) Stock market Tokyo Stock Exchange 1 st Section (6727) Business Lines Brand products (Pen tablets ) Components (Pen and touch components, etc.) Others (CAD software etc.) Offices and subsidiaries: JPN Overseas Tokyo, Nagoya, Osaka, Fukuoka U.S., Germany, China, Korea, Australia, Singapore, Hong Kong, Taiwan, and India 4 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

5 History 1980 s 5 All Rights Reserved. Copyright 2013 Wacom Co., Ltd Founded in Saitama, Japan 1984 First cordless pen tablet introduced 1988 Wacom Europe (Germany) established 1990 s 年 1990 Walt Disney adopted pen for Beauty & Beast 1991 Wacom Technology (U.S.) established 2000 s Subsidiaries established in Asia Pacific China (2000), Korea (2004), Australia (2005) Singapore (2006), Taiwan (2008) 2005 Listed in TSE Sec th Anniversary, New Brand launched 2009 Multi-touch sensors launched 2010 s 年代 2010 Wacom India established 2011 Received TSE Disclosure Award 2011 A smart phone adopted pen technologies 2012 Received JIRA Best IR Award for Small Cap.

6 Consolidated Sales (Million JPY) 62,500 60,000 50,000 40,000 36,739 33,809 32,045 33,030 40,700 Oth ers 30,000 20,000 10,000 0 FY 3/08 FY 3/09 FY 3/10 FY 3/11 FY 3/12 FY 3/13 (FY25) (FY26) (FY27) (FY28) (FY29) (FY30 ) Forecast as of Jan. 23, 13 6 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

Consolidated Profits (Million JPY) 8,000 7,000 7,800 7,600 6,000 5,000 4,000 3,000 2,000 5,539 5,581 3,501 4,311 4,179 4,067 3,128 3,156 3,252 3,363 2,579 1,968 1,967 3,892 2,181 4,800 1,000 0 FY

7 Consolidated Profits (Million JPY) 8,000 7,000 7,800 7,600 6,000 5,000 4,000 3,000 2,000 5,539 5,581 3,501 4,311 4,179 4,067 3,128 3,156 3,252 3,363 2,579 1,968 1,967 3,892 2,181 4,800 1,000 0 FY 3/08 FY 3/09 FY 3/10 FY 3/11 FY 3/12 FY 3/13 (FY25) (FY26) (FY27) (FY28) (FY29) Operating Profit Recurring Profit Net Profit (FY30) Forecast as of Jan. 23, 13 7 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

8 Key Financial Indicators 25.0% OPM ROE ROA 20.0% 20.1% 20.2% 15.0% 10.0% 5.0% 15.1% 12.9% 14.2% 12.8% 9.4% 11.7% 10.9% 10.7% 9.8% 9.8% 10.0% 7.3% 7.1% 7.1% 12.5% 11.5% 0.0% FY 3/08 FY 3/09 FY 3/10 FY 3/11 FY 3/12 FY 3/13 Estimated as of Jan. 30, 13 8 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

9 Who is Wacom? Wacom is the global leader in Pen tablet market. Wacom is the key supplier of pen and multi-touch sensor components for Smartphones and Tablet devices, etc. 9 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

sensitivity High dynamic performance High durability Side Switch

10 Wacom s Pen Technology High-speed high-precision EMR position sensor Eraser Switch Cordless, battery free pen Pressure sensitivity High dynamic performance High durability Side Switch Sensor Board 10 All Rights Reserved. Copyright 2013 Wacom Co., Ltd. Controller IC

unlimited number of fingers 100 fps(100 tps) or more speed and within

11 Wacom s Multi-touch Technology High-speed high-resolution capacitive multi-touch sensor High optical performance Simultaneous detection of unlimited number of fingers 100 fps(100 tps) or more speed and within 0.5mm accuracy 11 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

12 IP Portfolio and Strategy Global IP application and proactive IP management Global team of IP professionals for monitoring and defending IP portfolio (As of Dec. 31, 2012) Patents Designs Trademarks Registered Applied Registered Applied Registered Applied Japan Overseas Sub total Total *Overseas patents are applied and registered in the United States, Europe, China, Taiwan and other key countries. * Wacom counts one trademark for one product category as one. (Accordingly, in case of one trademark owned by Wacom for two product categories, the number of trademark is two.) 12 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

Main Product Lines Professional Products

13 Main Product Lines Professional Products Intuos-Series Cintiq-Series Inkling Consumer Products Bamboo-Series Business Products DT/PL-Series, STU-Series Components Tablet PCs, Slate-type devices e-books, etc. CAD Software ECAD dio 13 All Rights Reserved. Copyright 2013 Wacom Co., Ltd. DTU STU

14 Sales by Product Lines FY 3/2012 (FY29) Comp. 28.7% Business 7.3% CAD 1.3% Pro (Pen tablet) 24.7% 40.7 bn. JPY Consumer 24.9% Pro (LCD) 13.1% FY 3/2013 (FY30) Forecast Comp. 51.4% CAD 1.1% Pro (Pen tablet) 15.1% 62.5 bn. JPY Business 4.8% Pro (LCD) 9.7% Consumer 18.2% 14 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

15 Wacom Global Operations Wacom Europe Wacom China Wacom Korea Wacom India Wacom Japan Wacom Taiwan Wacom Singapore Wacom USA 10 key companies 886 full time employees Wacom Australia 15 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

16 Sales by Region Comp. 18.5% FY 3/2011 (FY28) Asia Oceania 12.8% Europe 23.2% 33.0 bn. JPY Japan 17.7% U.S. 27.8% Comp. 28.5% FY 3/2012 (FY29) Asia Oceania 11.3% 40.7 bn. JPY Europe 21.9% Japan 16.0% U.S. 22.3% 16 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

17 Wacom s Strength Original pen and multi-touch technology and IP portfolio Global presence and market share leadership Global partnerships with major industry players Global Market Share (units) Wacom s estimate in All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

24 Business Products DT/PL, STU DT/PL Series DTU Series Signature Tablets STU Series Software for handwritten signatures Wacom Sign Pro PDF SignPad- Series 24 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

29 Awards Good Design Award (Japan) 2010 Bamboo 2009 Intuos4 Ministry of Technology and Science (Japan) 1998 Minister Award BCN Award No.1 in Tablet Category red dot award - DESIGN ZENTRUM NORDRHEIN 2010 Bamboo Plus X Award, Germany 2012 Wacom, Cintiq 24HD etc Bamboo Stylus 2010 Bamboo IDEA, US 2012 Intuos5, Bamboo Bamboo Stylus Cintiq24HD Adobe Max Awards 2010 Bamboo Dock MIDAS Awards 2010 Bamboo Playroom Popular Science, Best of What s New 2011 Inkling 29 All Rights Reserved. Copyright 2013 Wacom Co., Ltd. Magazine Awards Editor s Choice PC Magazine, US (Cintiq 22DH) November Editor s Choice Print.IT Magazine, UK (sign&save) November Creative hardware product Macworld, UK (Cintiq24 HD) June Editor s Choice Macworld, UK (Intuos5) March Editor s Choice PC World, US (Intuos5) March 2011 The 50 Best Inventions Time Magazine, US (Inkling) December Best Products of 2011 PC World, US (Inkling) December 2010 Editor s Choice PC Magazine, US (Cintiq21UX) March Editor s Choice Digital Photo US (Intuos4) January 2009 Annual Editor s Award - Macworld, US (Bamboo Fun) December Editor s Choice - PC Magazine, SG (Intuos4) May Editor s Choice PC Magazine, US (Intuos4) April Editor s Choice Macworld, UK (Intuos4) March 2008 Recommended PC Pro, US (Cintiq 12WX) March Toppklass Tidningen FOTO, Sweden (Cintiq 12WX) March Editor s Choice Popular Photography, US (Cintiq 12WX) February Best Buy Digital Arts, US (Cintiq 12WX) February Performance Award PC Plus, UK (Bamboo Fun) February Editors choice Macworld, UK (Cintiq 12WX) February Recommended Macworld, Sweden (Bamboo Fun) February 2008 Rekommenderar PC Tidningen, Sweden (Bamboo Fun) January 2007 Editor s Choice PC Magazine, US (Bamboo Fun) October Best Buy Computer Shopper, UK (Bamboo) August Editor s Choice Laptop Magazine, US (Intuos3 PTZ-630) August

31 Components Integrated user interface solution with pen and multi-touch High speed, high resolution multi-touch sensor Cordless, battery free, pressure sensitive pen High optical performance touch panel Low power ASIC controller 31 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

33 Opportunities for Pen and Touch Primary use: Contents creation, paint, design, write etc. Pen Touch Primary use: Operation, control contents interaction etc. Growth rate: getting momentum Market: potentially large as a contents UI Complementary UI technologies Growth rate: fast Market: large as operational UI 33 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

34 Market Opportunities Function & added value All-In One PCs PC Monitors High end graphics 3D CADCAM Vertical business MFT + Pen Smart Phones Tablets e-book devices Notebook PCs MFT Multi-Finger Touch Vertical SFT Single Finger Touch Size All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

35 Global Operations Technology development Product management 35 All Rights Reserved. Copyright 2013 Wacom Co., Ltd. Product designing Production & SCM Marketing & sales Technology R&D Japan, US, Europe, and Taiwan Product management Global product management team (Japan, US, Europe, and Taiwan) Product engineering Hardware in Japan and Taiwan Drivers and Software applications in US and Europe Production and Supply Chain Management Black-box by in-house production of key components Mass production at EMSs partners in China and Taiwan SCM and QA managed in Japan and China by Wacom Marketing and Sales Global brand management in Europe and Japan Regional marketing and sales organizations

Cintiq 24 W SignPad 3 Cintiq 12 Component Pen Component Digitizer sensor Bamboo Pen Bamboo P&T Intuos 4 SignPad 1

36 EMS Partners Overseas EMS production 96.0% Domestic EMS production 2.5% Domestic in-house production 1.5% Pen tablet EMS partners LCD pen tablet EMS partners Component EMS partners 19 LCD Tablet 16 LCD Tablet Cintiq 21 Cintiq 24 W SignPad 3 Cintiq 12 Component Pen Component Digitizer sensor Bamboo Pen Bamboo P&T Intuos 4 SignPad 1 Intuos 5 17 LCD Tablet SignPad 2 Component Digitizer sensor Component Touch sensor 36 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

New Medium-Term Business Plan FY31-FY33 FY March, 2014 FY March, 2016 Wacom Co., Ltd.

40 New Medium-Term Business Plan: Key Assumptions Continued slow growth in the global economy with economic uncertainty in developed markets and decelerated growth in emerging markets. Smartphone, tablet and Cloud to be a new IT platform Rapid growth and new opportunities drive global IT investment. On-line brand communication to be a primary means for customer relationship development. On-line sales to be a primary channel for distribution. Multi-touch becomes standard user interface technology. Importance of electronic pen technology for contents creation and communication grows. User experience and Cloud-based community become critical for business success. Exchange rate: 1USD=75JPY, 1EURO=100JPY 40 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

41 Growth Strategy Expand business platform from PC to mobile and Cloud Accelerate the Branded product business Accelerate the Component business Strengthen global SCM (supply chain management) structure Promote global organizational development Enhance global IT infrastructure Accelerate development of new user interface technology Enhance emerging market investment 41 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

goals: By FY ending March, 2016 Consolidated sales:120 billion JPY or more Consolidated operating profit

42 New Medium-Term Business Plan WAP 1215 Wacom Action Plan for Changing Platform Basic Strategy Expand business platform from PC to mobile and Cloud, create new business and grow existing business Financial goals: By FY ending March, 2016 Consolidated sales:120 billion JPY or more Consolidated operating profit margin: 15% or higher Consolidated ROE: 30% or higher 42 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

43 Consolidated Sales (Unit: Million JPY) 120, ,000 80,000 60,000 40,000 20,000 40, ,683 Other Biz Component Biz Brand Biz 62, ,100 28,507 29,800 68, ,100 36,000 90, ,400 46, ,000 1,000 57,000 62,000 CAGR FY 3/14 FY 3/16 Consolidated Sales 29.2% 31.1% 27.7% 0 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 23, All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

44 Consolidated Profits (Unit: Million JPY) 20,000 19,160 CAGR FY 3/14 FY 3/16 Operating Profit Net Profit 15,000 12,630 12, % 10,000 7,800 8,910 8, % 5,000 4,067 4,800 5,680 2,181 0 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 23, All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

45 Key Financial Indicators 35.0% OPM ROE ROA 33.7% 30.0% 28.2% 25.0% 20.0% 20.5% 24.1% 17.2% 20.8% 15.0% 10.0% 11.7% 10.0% 12.5% 11.5% 14.2% 13.0% 14.0% 16.0% 5.0% 7.1% 0.0% FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 30, All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

46 Sales Targets By Business Others 1.0 bn JPY (0.8%) Others 0.6 bn JPY (1.0%) Component 32.1 bn 62.5 JPY bn (51.4%) JPY Brand 29.8 bn JPY (47.6%) Component 57.0 bn JPY (47.5%) bn JPY Brand 62.0 bn JPY (51.7%) FY March, 2013 (Forecast) as of Jan. 23, 2013 FY March, 2016 (Plan) 46 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

47 Brand Business: Medium-Term Plan Brand Business Mission: To meet the needs of creative people from all walks of life, and to make this world a more creative place 47 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

48 Brand Business: Product lines Creative Business Consumer Business Makes daily lives more creative and enjoyable. Provides simple and intuitive UI solutions for general users Bamboo Stylus, etc. Vertical Market Business Serves the passion of professional and consumer creativity Provides high value products and solutions for creative needs Cintiq, Intuos, Bamboo, Inkling, etc. Serves society by providing innovative solutions Provides faster, more efficient and secure ways to work STU (signature tablet), DT (display tablet) series, etc. Software Provides cross business, cross platform linkage with end-users Bamboo Paper Sign&Save 48 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

49 Brand Business: Growth Strategy Extend brand leadership and build user community Maximize effectiveness of global marketing and Web communication Expand brand awareness in general consumer and mobile user base Accelerate growth of creative business Deeper penetration in 2D imaging with Web-based marketing Development of 3D modeling and industry design segment Expansion of display product line Develop and expand mobile product line Develop new consumer business Develop digital stationery products and applications Dedicated team for business development Cloud-based application and services 49 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

50 Brand Business: Growth Strategy Develop vertical market business Focus on electronic document and paperless workflow Expand security business in finance and distribution industries leveraging biometric signature technology Invest in and expand emerging market business Expand product line and develop brand Strengthen investment in China, India and Latin-America Enhance new user interface technology development, and new products development Enhance R&D structure Expand software development structure 50 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

51 Brand Business: Sales Plan The Company will change products categories from FY March, Results for Bamboo tablets will be shifted from Consumer to Creative Tablet. (Unit: Million JPY) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Vertical Market Consumer Creative Tablet Creative Mobile Creative Display 28,507 29, All Rights Reserved. Copyright 2013 Wacom Co., Ltd. 36,000 3,600 2,700 19,900 46,000 5,300 4,400 21,300 5,000 2,200 7,600 10,000 62,000 7,800 7,900 22,500 9,900 13,900 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 23, 2013 CAGR FY 3/14 FY 3/16 Sales 27.7%

52 Component Business: Medium-Term Plan Component Business Mission: Provide Wacom UI solutions and experience to a wide range of global technology customers to make digital lives easy, fun and creative 52 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

53 Component Business: Growth Strategy Maximize growth in Smartphone segment Strengthen pen technology leadership Accelerate growth through closer partnership customers Establish pen technology leadership in tablet and e-book categories Enhance collaboration with OS and software vendors Expand in educational market with e-note category Strengthen multi-touch IC and module solution business Expand controller IC business in tablet segment Promote multi-touch sensor module for AIO (all-in-one) PCs Enhance engineering, SCM and QA capabilities Accelerate innovation in user interface technologies 53 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

54 Component Business: Sales Plan (Unit: Million JPY) 60,000 50,000 Touch Pen for Notebook PC Pen for Tablet 43,400 57,000 11,000 CAGR FY 3/14 FY 3/16 Sales 31.1% 40,000 30,000 Pen for Smartphone 32,100 32,100 2,700 4,600 5,600 4,900 13,000 5,300 16,700 20,000 10,000 11,683 9,000 15,800 19,900 24,000 0 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 23, All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

55 Global Strategy Enhance global SCM systems and capabilities Expand manufacturing partners and SCM organization Optimize global logistics for on-line business Enhance BCP for business risk management Accelerate investment and growth in emerging markets Focus on investment in China, India, Latin-America Accelerate growth with dedicated team Promote development of a global organization Global HR system development Global IT infrastructure Global HQ functionality 55 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

56 Sales Plan By Region (Unit: Million JPY) 120, ,000 80,000 60,000 40,706 40,000 20,000 Asia Oceania Europe U.S. Japan Comp. 62,500 68,800 5,900 11,700 11,700 7,400 32,100 90,300 8,200 15,000 14,500 9,200 43, ,000 11,600 19,700 19,700 12,000 57,000 CAGR FY 3/14 FY 3/16 Consolidated Sales 29.2% 0 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) as of Jan. 23, All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

57 Shareholder Returns: Medium-Term Plan Dividend Payout Policies Continue stable payouts to shareholders while maintaining stable financial base necessary for future business development Payout ratio to be 40% or more by FY ending March, 2016 (Unit: JPY) 9,000 Dividend per Share 6,000 3,000 0 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 (FY29 Act.) (FY30 Fcst) (FY31 Plan) (FY32 Plan) (FY33 Plan) 57 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

58 Our Future Strategy From technology to people From pen to user interface solutions From professionals to consumers Anywhere in the world, for everybody in the world 58 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

59 UI Paradigm Shift for everyone in the world anywhere in the world simple, natural, and easy for interaction and sharing fun and always connected 59 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.

62 Disclaimer Forward-looking statements regarding future events and performance contained in this presentation 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 new technologies. Please note that actual results could materially differ from those expressed or implied by the forward-looking statements in this presentation due to these risks and uncertainties. All rights reserved. All other company names and product names are trademarks or registered trademarks of their respective owners. Wacom Co., Ltd. Investor Relations Inquiries IR Office, Management Planning Dept. Wacom Co., Ltd. TEL: FAX: Sumitomo Fudosan Shinjuku Grand Tower 31F, Nishi-Shinjuku, Shinjuku-ku, Tokyo , Japan 62 All Rights Reserved. Copyright 2013 Wacom Co., Ltd.