Achieving rapid recovery in performance by increasing the profitability of stable businesses and developing new online businesses

Q. What do you think about the results from the last fiscal year, ending March 31, 2011?

Reflecting on the year just past, the first thing I would like say is that my heartfelt condolences go out to everyone affected by the earthquake in March. I am also very grateful for all the solidarity Japan received from around the world.
As for last fiscal year's business results, Casio's performance received a special boost as we formed alliances to transfer underperforming operations. Our remaining businesses are all profitable, and a rapid recovery in financial performance is expected in the future.

Q. Please tell us about the development of Casio's digital camera business.

Casio has been focusing on compact digital cameras, but there are many manufacturers in this market and competition is intense. Naturally, this leads to price competition, and there is some concern that our camera business might face profitability challenges in this environment.
We are working to differentiate our digital cameras from those of competitors by incorporating our own original technologies. For example, HDR-ART allows the user to create vibrant and colorful art images that go beyond everyday reality through photo processing. The EX-TR100 is a quintessential Casio digital camera with a unique design that breaks away from conventional ideas of the camera. We have switched to a strategy that emphasizes profitability instead of merely trying to increase sales volume.

Q. What about business areas other than digital cameras?

Results for businesses such as timepieces and electronic dictionaries have improved. Our watches are doing particularly well, not just G-SHOCK, which is well known around the world, but also OCEANUS and PRO TREK, which now occupy strong positions in the market. We are not over-confident, but we expect to further increase profitability in this area by utilizing our assets such as brand value and technologies.

Q. Could you tell us about the new business you have started on the Internet?

We have begun a completely new online service utilizing original technology that Casio has developed for digital cameras. Specifically, we have established a website called Imaging Square. The site allows users to take digital photos captured with any device, and convert them to art pieces or paintings, or create images that would be impossible in reality. We want to make this service popular with people worldwide. In the past, Casio has achieved various breakthroughs in digitization, and now we are aiming to offer "art digitization" to the world through this new business. The plan is to commercialize this service by introducing usage fees.

Q. Finally, do you have a particular word for your shareholders?

Although the earthquake affected our parts procurement, we were able to make it through the crisis by increasing the profitability of our core businesses and by expanding into new business areas. As a result, we are continuing to grow. I look forward to your continued support in the future.