Reorganizing to develop new businesses and expand strong businesses in order to deliver continually growing sales and profit.
Business Results for Fiscal 2018
In the timepiece business and education products business, which are both highly profitable, we implemented ongoing improvements based on the established business models and achieved further business growth. In the businesses of digital cameras, musical instruments, and digital projectors, which are facing challenges, we worked on fundamental structural improvements and structural reform of each business. In the system equipment business, the structural reform implemented in fiscal 2017 yielded dramatically improved profitability, bringing the business back into the black. We also worked to create new businesses and new genres with the potential to become new core businesses that drive profit.
As a result of these efforts, in fiscal 2018 Casio recorded ¥314.7 billion in net sales and ¥29.5 billion in operating profit. Although these figures were down from the previous fiscal year, we are now well positioned to begin sweeping business structure reform. These reforms will include withdrawing from the compact digital camera business, which has suffered from major market contraction, and a strategic review of our organization with a view to building a new organizational structure that can deliver profit growth.
Priority Strategies in Fiscal 2019
Casio will accelerate business structure reform and work to further expand highly profitable businesses and establish new businesses to deliver continuously growing sales and profit.
In April, Casio established the Business Strategy Headquarters, which consolidated product planning functions and marketing functions. The new Business Strategy Headquarters will draw up separate medium-term business strategies for the six business units: timepieces; electronic dictionaries and English conversation learning tools; educational scientific calculators; musical instruments; DPJ and VI; and system equipment. The aim will be to continuously expand markets in collaboration with the Product Development Headquarters and the Global Marketing Headquarters, which are the implementing organizations, accelerate business growth, and seek business maximization. With regards to back-office operations at the head office, we will also implement systemic reform and organizational restructuring to support implementation of the medium-term business strategies. We will pursue company-wide structural reform by strengthening the four divisions and operations above.
- DPJ and VI: includes data projectors and label printers
In the timepiece business, we will work to grow sales and profit by taking advantage of our strong business model. For G-SHOCK, we will introduce more full metal models targeting the youth segment. For metal analog watches, we will add new models equipped with Bluetooth®. We will launch diamond models for non-brand watches. In terms of marketing strategy, we will promote the rebuilding of overseas sales networks as well as boosting online sales. In addition, we will actively pursue strategic alliances with app vendors and B-to-B expansion in the area of smartwatches.
In the education products business, we will expand school sales of scientific calculators and strengthen corporate sales of English language learning devices while also working to boost sales of electronic dictionaries in the Chinese market.
Furthermore, we established the Business & Technology Development Center to strongly advance the development of new businesses. Casio will continue to establish new businesses under a framework for promoting a fusion of technologies that cuts across the boundaries between each business.
At the same time, we will work toward establishing the business in our newly launched 2.5D printing system, Mofrel. Mofrel is a revolutionary system that can reduce the time and cost it takes to prototype the initial design of a product to 1/50th of what they were previously, using Casio’s original electromagnetic wave molding technology. It makes it possible to test a large number of design ideas without concern for cost and time restrictions. The system has already been introduced by automotive component manufacturers and interior materials manufacturers, and is expected to be adopted by companies in a wide variety of sectors.
Message to Shareholders
Based on its policy of performance-linked shareholder returns, Casio will be certain to pursue the strengthening of management structure. The company’s basic policy is to provide stable dividends for shareholders. Based on business results in fiscal 2018, Casio added a commemorative dividend for the 60th anniversary of its founding of ¥10 per share to the annual dividend of ¥40 per share that was paid in the previous fiscal year, resulting in a dividend of ¥50 per share.
In fiscal 2019, we will work hard to ensure further recovery of business results and enhancement of shareholder returns. Going forward, Casio will exert the utmost efforts in the execution of management in order to meet the expectations of shareholders.