wacomstrategicbusinessplan sbp-2019 (fy 03/2016...
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Wacom Strategic Business Plan
SBP-2019 (FY 03/2016 – FY 03/2019)
Wacom Co., Ltd.
(TSE Sec.1 6727)
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 2
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
Wacom Strategic Business Plan
SBP-2019Evolve 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
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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
6
CORPORATE STRATEGY DRIVER
BUSINESS DRIVERS
Technology
SolutionCreative Consumer
Platforms &
Applications
Business
Solution
Engineering
Solutions
Design CenterEngineering
& QAOperations
CORPORATE FUNCTIONS
Technology Development, Legal, IP, Internal Audit, Accounting, Treasury, HR, Corporate Brand & PR, Corporate Administration, Investor Relations, etc.
Enabling Functions
Marketing Center
Business Units
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Global Business Units (BU)
Technology Solution Business
UI technology solutions for mobile systems EMR, AES Components & modules (feelTM)
Other Business Engineering solution・ECAD dio
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.
Creative business
Serves the passion of professional and consumer creativity
Intuos, Intuos Pro, Cintiq Companion, Cintiq
Bra
nd
Pro
du
ct B
usin
ess
Platform &application
Provides
technology,
apps and
platforms
WILL,
Bamboo
Paper,
Sign&
Save
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43,62550,300
56,20063,600
75,300
30,277
33,000
36,000
39,500
43,700
655
700
800
900
1,000
0
20,000
40,000
60,000
80,000
100,000
120,000
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
Other biz
Tech. Solution biz
Brand biz
Consolidated Sales
10%
15%
CAGR(Unit: Million JPY)
Consolidated
Sales
13%
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
74,557
84,000
93,000
120,000
104,000
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6,1435,500
7,440
10,400
14,400
3,473 3,530
5,068
7,070
9,800
0
5,000
10,000
15,000
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
Operating Profit Net Profit
Consolidated Profits(Unit: Million JPY)
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
30%
24%
CAGR
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Key Financial Indices
8% 7%
8%
10%
12%10%
10%
14%
19%
24%
7%
6%
9%
12%
14%
0%
5%
10%
15%
20%
25%
30%
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
OPM ROE ROA
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
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Business Structure in SBP-201911年3月期 12年3月期
Sales in FY 03/2019
(Plan)
Sales in FY 3/2015
(Actual)
120.0 bn
JPY
Technology
Solution43.7 bn
JPY(36.4%)
Others
1.0 bn JPY (0.8%)
Brand Product
43.6 bnJPY
(58.5%)
Component30.3 bn
JPY
(40.6%)
Others
0.7 bn JPY (0.9%)
Brand
Product75.3 bn
JPY
(62.8%)
74.6 bn
JPY
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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
Brand Product Business
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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
CAGR(Unit: Million JPY)
Sales
15%
21,981 23,300 23,500 23,600 23,700
3,910 5,400 6,600 8,400 11,400
10,590 12,400
14,700 16,900
20,000
1,554
2,300 2,700
3,500
4,800
5,591
6,900
8,700
11,200
15,400
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
Business Solution
Consumer
Creative・Display
Creative・Mobile
Creative・Tablet
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
43,625
50,300
56,200
63,600
75,300
2%
29%
31%
33%
17%
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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
Technology Solution Business
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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 Leverage government project successes and experiences
Build new partnerships for solution approach
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 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
18,331 18,500 18,200 18,000 18,000
8,542 10,500
13,400 16,900
20,700 3,404 4,000
4,400
4,600
5,000
0
10,000
20,000
30,000
40,000
50,000
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
Pen for Notebook PC, etc.
Pen for Tablet
Pen for Smartphone
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
CAGR
Sales
10%
0%
10%
15%
30,277
33,000
36,000
39,500
43,700
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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 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
Global sharing of business information for speedy decisions 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 Web Site
E-Store
Digital Marketing
New Website,
Product Info. & E-store
Corporate Information
Integrated Cloud Based Information TechnologyERP System (SAP), SCM System (JDA), CRM System (Microsoft), Procurement (Coupa), Global Infrastructure
Global Info. Sharing and Business IntelligenceCorporate Performance Management (CPM), Operational and Financial Metrics and KPI’s.
Supply & Demand
Planning
Manufacturing
Operations
ODM
Global Logistics
3PL3rd Party Logistic Provider
Call Center
Customer Service
Outsourced Call Center
with expanding Repair
services
Outsourced Logistics,
Warehousing, &
Brokerage
Unified forecasting, PSI
& demand cycle
Procurement & Order
Management
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Estimation of Cumulative Net Cash Flow
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
FY03/14
FY03/15
FY03/16
FY03/17
FY03/18
FY03/19
FY03/20
FY03/21
FY03/22
Project Investment and Return (Unit: 0.1 bn JPY)
The term of
Wacom SBP-2019
This fiscal year
Estimation of Annual Net Cash Flow
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
FY03/14
FY03/15
FY03/16
FY03/17
FY03/18
FY03/19
FY03/20
FY03/21
FY03/22
The term of
Wacom SBP-2019
This fiscal year
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Shareholder Returns
0.00
5.00
10.00
15.00
20.00
25.00
30.00
FY 03/15 FY 03/16 FY 03/17 FY 03/18 FY 03/19
(Unit: JPY)
(FY32 Act.) (FY33 Fcst) (FY34 Plan) (FY35 Plan) (FY36 Plan)
Dividend per share
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
18.00 18.00
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Reference Information
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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
Sales 74,557 84,000 93,000 104,000 120,000 13%
OP 6,143 5,500 7,440 10,400 14,400 24%
OPM 8.2% 6.5% 8.0% 10.0% 12.0%
NP 3,473 3,530 5,068 7,070 9,800 30%
NPM 4.7% 4.2% 5.4% 6.8% 8.2%
ROE 10% 10% 14% 19% 24%
ROA 7% 6% 9% 12% 14%
Key P/L Financial Indicators
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Sales & OP Plan: Brand Product BusinessFY 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 43,625 50,300 56,200 63,600 75,300 15%
Cre
ativ
e
Pen Tablet 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%
OPM 14% 18% 19% 21% 22%
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 26
Sales & OP Plan: Technology Solution BusinessFY 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%
OPM 15.3% 13.8% 13.1% 13.1% 13.2%
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 27
our vision
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 28our mission
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd. 29
our brand
DisclaimerForward-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.
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
Wacom Co., Ltd.
http://www.wacom.com