Working to improve profitability by expanding the timepiece and education products businesses and transforming the business structure.
Business Results for First Half of Fiscal 2018
In the first half of fiscal 2018, Casio recorded net sales of ¥153.5 billion and operating profit of ¥14.6 billion. Profit attributable to owners of parent saw substantial growth, up 56% year on year.
The timepiece business stayed strong on the back of new products, namely the G-SHOCK with a 3-way time sync system using GPS, radio control and smartphone connectivity in the high-end price range and the G-STEEL that pairs with a smartphone using Bluetooth® in the mid-level price range.
In the education products business, scientific calculators for new student enrollment performed well outside Japan, and electronic dictionaries were also steady.
Improvements were made to the production system for musical instruments, increasing productivity.
In the System Equipment segment, structural reforms yielded results, and the segment recorded a profit.
Future-Oriented Priority Strategies in the Second Half
In the timepiece business, Casio will take advantage of the 35th anniversary of G-SHOCK to strengthen marketing and create new markets. In terms of products, we will expand the lineup, including a series of commemorative G-SHOCK model, and fully expand the high-end 3-way time sync line. In the mid-level price range, we will extend the lineup of G-STEEL and EDIFICE models. In terms of marketing strategy, we will increase recognition of our other brands at global business meetings focusing on 35th anniversary events for G-SHOCK. We will also promote communication via social media, looking to increase the number of young fans all over the world.
In the education products business, Casio will expand the scientific calculator and electronic dictionary businesses by leveraging the strong GAKUHAN business model, which involves marketing activities targeting educational institutions. We will expand sales of color graphic scientific calculators, primarily in developed countries, and accelerate expansion of untapped markets overseas. In November, we launched a new English conversation learning tool in Japan. We will also aim to grow in the area of BtoB by developing non-retail distribution channels, including distance learning providers, and through corporate co-sponsors of the Hospitable English Ability Response Test.
Furthermore, we will vigorously pursue the development of new products that integrate our powerful technologies, while also streamlining by carrying out business integration to prime growth and pursuing transformation of the business structure. In the electronic musical instrument area, we will work to strengthen the electronic keyboard business. We will strive to supply high-quality products in a stable manner and to improve the cost structure by reinforcing our in-house production system. We will review the lineup and halve the number of models to boost profitability and develop new sound sources that support diverse music.
In the digital camera business, we aim to establish a second original genre based on G’z EYE, a new product with shock-, water- and dust-resistant features, in addition to creating a new market based on the development of applications, including business use. In the TR series of digital cameras designed especially for taking selfies, which we established as our first original genre, we will expand the lineup of models in the cosmetic compact-style of the TR Mini. We will create a unique selfie culture that is more complete by developing advanced functions unmatched by our competitors’ products.
In the System Equipment segment, we will enhance profitability, driven by products such as handheld terminals and electronic cash registers.
We will rapidly establish new businesses such as the 2.5D printing system. Our 2.5D printing system, which can output prototypes with texture such as cloth, stone, and leather in a significantly shorter time than previously using the world’s first electromagnetic shaping technology, was highly acclaimed for its innovativeness and market potential at CEATEC JAPAN, Asia’s largest international IT and electronics expo held in October, and received the first triple award. There has been a sharp increase in inquiries from companies in a wide range of industries such as automobiles, building materials, and apparel in and outside Japan, and we plan to start taking orders within fiscal 2018.
Message for Shareholders
Casio is making steady strides in strengthening its business position, maintaining a policy of providing shareholder returns based on performance. Regarding the distribution of dividends to shareholders, our basic policy is to provide stable dividends, thus we provided an interim dividend of ¥20 per share. Going forward, we will continue making every effort to reform management in a way that meets the expectations of our shareholders.