Wacom Strategic Business Plan SBP-2019 (FY 03/2016 – FY 03/2019) Wacom Co., Ltd. (TSE Sec.1 6727)
Strategic Business Plan Background
Wacom Strategic Business Plan 2019 (SBP-2019), covers the period starting from FY33 (the year ending March 2016) to FY36 (the year ending March 2019).
Responding to rapid changes in the IT industry and User Interface technologies, Wacom continues to transform its business model to mobile and Cloud and seeks new business opportunities and customer segments.
Wacom seeks steady growth by leveraging its global industry leadership in the creative market, and through the end-to-end integration of products and services, while investing in creating new market categories in consumer and business solution.
Technology Solution will face high volatility in market and customer outlook and we need to develop a broader range of customers to improve the stability of business.
Assumed foreign exchange rate: 1USD=110JPY, 1EURO=130JPY
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Strategic Business Plan Background
Smartphone, Tablet, and Cloud as the main IT platform
HW, SW, and Cloud integration impacts all lines of business Wearable and IoT(Internet of Things) will further accelerate Cloud integration
Evolution and globalization of digital design process
Creative market expansion as 3D and 2D merges as one platform Emerging market design industry continues to gain momentum
Stronger interests for creativity in mobile consumer market
Originality and vital influence becomes high value among mobile consumers New opportunity for Digital Stationery market
Business and education go mobile
Mobile workflow proliferates as Cloud integration proceeds Education market embraces tablets for classroom
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Wacom Strategic Business Plan SBP-2019 Evolve the business model toward mobile and Cloud for reaching new customers as well as expanding existing business. In addition, improve the speed and profitability by leveraging our global business infrastructure. Financial Goals by FY ending March, 2019 • Consolidated sales: 120 billion JPY
• Consolidated operating profit margin: 12% • Consolidated ROE: 20% or higher
Basic Strategy
Evolve the business toward mobile, Cloud and ecosystems.
Accelerate the growth with a new global business organization and enhanced global integration.
Accelerate creative business with mobile product line expansion, 3D penetration and emerging market investment.
Reach new consumer users with Digital Stationery and Cloud.
Expand the Technology Solution (comp.) business with AES and WILL (Wacom Ink Layer Language).
Enhance business workflow and security solutions by leveraging WILL and digital signature solutions.
Leverage global business system for efficiency, speed and profitability.
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Basic Framework of Global Organization CORPORATE STRATEGY DRIVER BUSINESS DRIVERS
Creative
Consumer
Business Solution
Engineering Solutions
Platforms & Applications
Technology Solution
Business Units Marketing Center
Design Center
Engineering & QA
Operations
Enabling Functions CORPORATE FUNCTIONS Technology Development, Legal, IP, Internal Audit, Accounting, Treasury, HR, Corporate Brand & PR, Corporate Administration, Investor Relations, etc.
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Global Business Units (BU) Brand Product Business
Creative business
Serves the passion of professional and consumer creativity Intuos, Intuos Pro, Cintiq Companion, Cintiq
Platform & application
Consumer business
Makes daily lives more creative and enjoyable Bamboo Stylus, Bamboo Pad, etc.
Business solution
Serves society by providing innovative solutions STU (Signature Tablet), DT (Display Tablet) series, etc.
Provides technology, apps and platforms WILL, Bamboo Paper, Sign& Save
Technology Solution Business
UI technology solutions for mobile systems EMR, AES Components & modules (feelTM)
Other Business
Engineering solution
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・ECAD dio 7
Consolidated Sales (Unit: Million JPY)
120,000
Other biz
120,000
Tech. Solution biz Brand biz
93,000
100,000
84,000 80,000
74,557
104,000 900
43,700
800
700
1,000
39,500
CAGR Consolidated Sales 13% 10%
36,000
655
33,000
60,000
15%
30,277
40,000 20,000
75,300 63,600
50,300
56,200
FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
43,625
0
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Consolidated Profits (Unit: Million JPY)
14,400
15,000 Operating Profit
Net Profit
CAGR 10,400
10,000
7,440 6,143
5,500
5,000 3,473
9,800
7,070
30% 24%
5,068
3,530
0 FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
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Key Financial Indices 30% OPM
ROE
ROA
24%
25% 19%
20% 14%
15% 10%
10% 5%
8%
14% 12%
10% 9% 7%
7%
12%
10% 8%
6%
0% FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
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Business Structure in SBP-2019 11年3月期
Others 1.0 bn JPY (0.8%)
Others 0.7 bn JPY (0.9%)
Component 30.3 bn JPY (40.6%)
74.6 bn JPY
12年3月期
Brand Product 43.6 bn JPY (58.5%)
Sales in FY 3/2015 (Actual) All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
Technology Solution 43.7 bn JPY (36.4%)
120.0 bn JPY
Brand Product 75.3 bn JPY (62.8%)
Sales in FY 03/2019 (Plan) 11
Brand Product Business Brand Product Business Mission:
To meet the needs of creative people from all walks of life, and to make this world a more creative place
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Growth Strategies: Brand Product Business
Creative Business
Expand the user base from 2D to 3D design and modeling Enhance display and mobile products with Cloud integration Accelerate the growth with G2M innovation and global integration Develop new business to offer new values to customer base
Consumer Business
Develop new Digital Stationery category with digital pen and ink Provide fully integrated Cloud-based solutions and services Build new general consumer community and channels
Business Solutions
Develop digital ink based workflow and biometric security solutions Expand industry specific mobile product line for higher value Build partnerships to support globally enterprise customers
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Brand Product Business: Sales Plan (Unit: Million JPY)
80,000
63,600
15,400
CAGR Sales 15%
11,200
4,800
29%
Business Solution
75,300
Consumer
70,000
Creative・Display Creative・Mobile
60,000
Creative・Tablet
50,300 50,000 40,000 30,000
43,625
6,900 2,300
5,591 1,554
12,400
56,200 8,700
3,500
2,700
14,700
20,000 16,900
17%
10,590
11,400
5,400
6,600
8,400
21,981
23,300
23,500
23,600
23,700
FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
3,910
31%
20,000
10,000
33%
2%
0
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Technology Solution Business Technology Solution Business Mission: Provide Wacom UI solutions and experience to a wide range of global technology customers to make digital lives easy, fun and creative
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Growth Strategies: Technology Solution Business
Establish the global leadership in all mobile product category
Evolve the business from component vendor to solution partner Expand Smartphone customer user base by EMR pen evolution Establish Active ES pen as the industry standard in the Tablet category Lead the industry partnership to expand the pen standard
Expand users in Education Tablets
Build new customer base in Digital Stationery categories
Partner with traditional stationery companies going digital Accelerate the adoption by offering digital pen cartridges
Promote WILL (Wacom Ink Layer Language ) partnership
Leverage government project successes and experiences Build new partnerships for solution approach
Enhance solutions offered in B2B and B2C platforms
Invest in automated production for higher quality and lower cost
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Technology Solution Business: Sales Plan 50,000 43,700
Pen for Notebook PC, etc. Pen for Tablet
40,000
Pen for Smartphone
33,000
30,277 30,000
39,500 36,000
5,000
4,600
4,000 10,500
Sales 10%
4,400
3,404 8,542
CAGR
13,400
16,900
20,700
10% 15%
20,000
0% 10,000
18,331
18,500
18,200
18,000
18,000
FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
0
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Initiatives: Corporate Function
Leverage global value chain and business IT infrastructure
Leverage digital marketing and direct e-commerce capability Integrate global branding-marketing-sales activities Reach new customers with global logistics capability Global HR system for global performance management Improve ROI with real-time business information
Accelerate emerging market development
Strengthen investment in China, India, ASEAN, and LATAM Expand market specific product lines and build brand presence
Enhance innovation in product, technology and business processes.
Enhance business incubation and R&D structure Develop stronger partnership capabilities for innovation
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Global Business Infra. development
Development of customer-centric global value chain
Global sharing of business information for speedy decisions
Global WEB site to meet product information needs and broader access. E-Commerce direct sales and fast delivery by a global logistics provider Improved customer support with global CRM and direct marketing Shared global KPIs and business intelligence Higher accuracy for demand and supply planning and sales programs
Improved efficiency by Cloud-based global IT Infra. Integration
Unified business processes for speedy expansion of new business and geographic entities
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Global Value Chain and Business IT Infrastructure Global Info. Sharing and Business Intelligence Corporate Performance Management (CPM), Operational and Financial Metrics and KPI’s.
Global Web Site E-Store Digital Marketing
Supply & Demand Planning
Manufacturing Operations ODM
New Website, Product Info. & E-store Corporate Information
Unified forecasting, PSI & demand cycle
Procurement & Order Management
Global Logistics 3PL 3rd Party Logistic Provider
Outsourced Logistics, Warehousing, & Brokerage
Call Center Customer Service
Outsourced Call Center with expanding Repair services
Integrated Cloud Based Information Technology ERP System (SAP), SCM System (JDA), CRM System (Microsoft), Procurement (Coupa), Global Infrastructure
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Project Investment and Return Estimation of Annual Net Cash Flow 80.0 60.0 40.0
Estimation of Cumulative Net Cash Flow 80.0
The term of Wacom SBP-2019
60.0 40.0
20.0
20.0
0.0
0.0
-20.0
-20.0
-40.0
(Unit: 0.1 bn JPY)
This fiscal year
-60.0
The term of Wacom SBP-2019
-40.0 -60.0
-80.0
-80.0 FY FY FY FY FY FY FY FY FY 03/14 03/15 03/16 03/17 03/18 03/19 03/20 03/21 03/22
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This fiscal year FY FY FY FY FY FY FY FY FY 03/14 03/15 03/16 03/17 03/18 03/19 03/20 03/21 03/22 21
Shareholder Returns Dividend Payout Policies
Continue stable payouts to shareholders while maintaining stable financial base necessary for future business development
Payout ratio is targeted for maintaining 40% or more (Unit: JPY)
30.00
Dividend per share
25.00 20.00
18.00
18.00
FY 03/15
FY 03/16
FY 03/17
FY 03/18
FY 03/19
(FY32 Act.)
(FY33 Fcst)
(FY34 Plan)
(FY35 Plan)
(FY36 Plan)
15.00
10.00 5.00
0.00
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Reference Information
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Key P/L Financial Indicators FY 03/15 (FY32) Actual
Sales
FY 03/16 (FY33) Forecast
FY 03/17 (FY34) Plan
FY 03/18 (FY35) Plan
FY 03/19 (FY36) Plan
CAGR
74,557
84,000
93,000
104,000
120,000
13%
6,143
5,500
7,440
10,400
14,400
24%
8.2%
6.5%
8.0%
10.0%
12.0%
3,473
3,530
5,068
7,070
9,800
4.7%
4.2%
5.4%
6.8%
8.2%
ROE
10%
10%
14%
19%
24%
ROA
7%
6%
9%
12%
14%
OP OPM
NP NPM
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30%
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Sales & OP Plan: Brand Product Business FY 03/15 (FY32) Actual Segment Total
FY 03/16 (FY33) Forecast
FY 03/17 (FY34) Plan
FY 03/18 (FY35) Plan
FY 03/19 (FY36) Plan
CAGR
50,300
56,200
63,600
75,300
15%
21,981
23,300
23,500
23,600
23,700
2%
Mobile
3,910
5,400
6,600
8,400
11,400
31%
Display
10,590
12,400
14,700
16,900
20,000
17%
Consumer
1,554
2,300
2,700
3,500
4,800
33%
Business Sol.
5,591
6,900
8,700
11,200
15,400
29%
OP
5,965
9,280
10,890
13,070
16,640
29%
14%
18%
19%
21%
22%
Creative
43,625
Pen Tablet
OPM
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Sales & OP Plan: Technology Solution Business FY 03/15 (FY32) Actual
FY 03/16 (FY33) Forecast
FY 03/17 (FY34) Plan
FY 03/18 (FY35) Plan
FY 03/19 (FY36) Plan
CAGR
Segment Total
30,277
33,000
36,000
39,500
43,700
10%
For Smartphone
18,331
18,500
18,200
18,000
18,000
0%
For Tablet
8,542
10,500
13,400
16,900
20,700
25%
For Notebook PC, etc.
3,404
4,000
4,400
4,600
5,000
10%
OP
4,642
4,570
4,730
5,190
5,790
6%
15.3%
13.8%
13.1%
13.1%
13.2%
OPM
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our vision
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our mission
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our brand
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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.
Wacom Co., Ltd. http://www.wacom.com Investor Relations Inquiries TEL: +81-3-5337-6502 FAX: +81-3-5337-6519 Wacom Co., Ltd. Sumitomo Fudosan Shinjuku Grand Tower 31F, 8-17-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-6131, Japan
