1. No category

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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
2
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
3
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.
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
5
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.
6
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
6
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
・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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
8
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)
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
9
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)
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
10
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
13
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
14
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
16
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
17
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
18
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
19
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
20
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
22
Reference Information
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
23
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
30%
24
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
25
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
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
26
our vision
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
27
our mission
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
28
our brand
All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.
29
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