Management

Strategy

Building a Foundation for Continual Growth

Delivering great products to consumers, reliable returns to shareholders, and successful business partnership to suppliers—Casio’s
approach to securing continual growth is to benefit all of its stakeholders.

● Management Focused on Profitability

ch is represented by the capital entrusted to it by sha end, the

society’s
company’s
investment,
key management
reholders. Toward
indicatorthis
is profita
bility. Casio
bold steps
is taking
group-wide
margin. to improve its operating income

Net sales Operating income margin

(¥ million) (%) 9.0
700,000
620,769
580,309 8.0 7.4 7.7
600,000 559,006
523,528
7.0
7.0
500,000
440,567
5.3
400,000 6.0
5.0
4.1
4.0
300,000

3.0
200,000

2.0
100,000

FY2003FY2004FY2005FY2006FY2007 FY2003FY2004FY2005FY2006FY2007
1.0
0

0.0

● Achieving both Stability and Growth

Casio has positioned businesses that

have maintained high market share
and yield steady profits as Stable
Businesses. It has positioned
businesses that are expected to
experience significant global market Stable Expansive Businesses
growth in the future, while also seeing Busines ses
intensifying competition as a large
number of companies enter the
market, as Expansive Businesses.
Casio is following a successful
strategy of securing stable profits from
the Stable Businesses while
increasing both sales and operating
Electronic
income in Expansive Businesses. Thiscalculators, Digital cameras, cellular phones, TFT LCDs
electronic
approach to management has been dictionaries, timepieces, electronic musical instruments, system equipment
securing both growth and profitability,
and is expected to continue to deliver
superior sustainable results. Fiscal007
2 Fiscal 2007 Sales: 356.5 billion yen (up 12.0% year-on-year)
Sales: 264.3
billion yen r-on-year)
Operating income margin: 5.3%
(up 0.8% yea
margin: 13.0%
Operating income

08 Casio Corporate Report 2007

 ● Performance of Main Products
Co
rp
Digital Cameras Numbe
ora
(million units)
Units sold in fiscal 2007: 6 million 7.0 te
6.0
As the creator of the digital camera market, Casio continues to leverage its technologies to deliver compact, slim designs, and leads the market for5.0 Pr pro
stylish, compact
4.0
3.0
ofil
2.0
1.0 2.8
0

CS
R
FY2004
Hig
hli
Number of radio-controlled ght
watches sold s
(million units)
3.0
ed timepieces, which never need to be adjusted by hand. These products now account for 45% of the value of Casio’s timepiece sales. Casio also possesses the
2.5 largest share of the globa
2.4
2.5
2.0
2.0
1.5 CS
1.5
R
1.0 Ma
0.5 na
0 ge
FY2004 FY2005 FY2006 FY2007 me
nt

G-SHOCK
Number of units sold to date: over 60 million Ca
siounits in
The water and shock-resistant G-SHOCK watch is the epitom Casio’s tough device construction. Since the G-SHOCK’s deb in 1983, Casio has sold over 60 million
an
d
the e of ut
Ma
rke
t

Casio
and
the
nes Global
Electronic Calculators Enviro
action ranking: No. 1 for two consecutive years nment
Total
op ranking for overall satisfaction for two straight years in the cellular phone customer satisfaction surveynumber
conductedof
by units
fic, Inc. sold to date: 1 billion

In December 2006, Casio shipped

its one billionth calculator, counting Ca
from the first electronic calculator, sio
called the 001, introduced in 1965. an
Casio calculators helped to d
generate massive popular demand, Em
which contributed significantly to the
plo
development of the semiconductor
Source: J.D. Power Asia Pacific 2005 & 2006 Japan Mobile Telephone yee
Handset Satisfaction StudySM. The 2006 study was based on evaluations
industry. With its development of scientific and educational
s
from 3,187 customers who purchased a mobile phone in the preceding year. calculators, Casio is now known the world over for its
http://www.jdpower.co.jp/jdp_e/ outstanding products in this field.

Ca
Electronic Pianos sio
Market share in Japan: No. 1* an
rking professionals. Advanced Casio
features,
has thesuch
largest
as handwriting
share of therecognition
electronic piano
and recorded
market inpronunciations
Japan, and is by
known
nativeforspeakers,
electronicexplain
pianoswhythatCasio
offer dominates
superior performance
this market features
in Japan such d an
with as natu
over
survey which compiled sales results from major electronics stores throughout Japan. So
cie
*Market share based on quantities sold by manufacturers from January to December 2006, according to a GfK JAPAN survey that compiled sales results from major electronics stores throughou
ty

Co
mp
an
y
Dat

Casio Corporate Report 2007 09