Sie sind auf Seite 1von 42

Annual Report

2009
Creating harmony between
people and technology
We looked inside ourselves
to find the thought that defines
and drives everything we do.

An idea that helps us open


up to experience the world
in a new way.

An idea to drive us forward.


Open up. Sense more.
An idea. A dream. An inspiration.

2
The key to our success
Our corporate vision is “creating harmony between people and technology.” How do we do this? By providing
technologically-sophisticated tools that are natural to use and people-friendly. Anyone can use them.
In the 1980s we pioneered the development of cordless and battery-free pen tablets – a brand new way of working
that opened up fresh, creative possibilities. Graphic artists around the world immediately prized the pen tablet’s
user-friendly interface and versatility. To this day, the pen tablet is an absolute must-have in the world of graphics.
We did not stop there. We thought, “What if you could draw directly on to a computer screen?” Our interactive pen
displays enable users to do just that. These products are now hugely popular in many business sectors, including
medical firms, educational institutions, transportation/shipping companies and those enterprises that need more
natural and interactive ways to use computers.
We then looked at how we could make life better for mobile users such as traveling executives, doctors and truck
drivers. We incorporated pen-sensor components into Tablet PCs so that handwritten notes can be added more
easily to documents during meetings and interviews. This makes data entry faster and more natural and efficient
than ever before.
Our pen tablets continue to be adopted into new application areas, and we are committed to the ongoing develop-
ment of exciting new technologies. Our aim is to revolutionize both the workplace and the home with our user-
interface technology. We’re looking forward to seeing where this takes us. It’s going to be an exciting journey.

Financial Highlights Wacom Co.,Ltd. and Its Subsidiaries


Years ended March 31

Thousands of
Thousands of yen U.S. dollars*
2008 2009 2009
For the year:
Net sales ¥36,739,196 ¥33,809,138 $344,183
Gross profit 18,640,355 16,761,164 170,632
Operating income 5,538,871 4,311,378 43,891
Net income 3,501,360 2,579,025 26,255
At year end:
Total assets ¥29,221,330 ¥25,631,057 $260,929
Total net assets 18,516,742 17,796,487 181,172
Per share (yen andU.S. dollars) :
Net income
Primary ¥ 8,348.74 ¥ 6,213.93 $ 63.26
Diluted 8,304.38 6,197.78 63.09
Cash dividends applicable to the year 2,500.00 3,000.00 30.54
*Note 1: U.S. dollar amounts h ave been translated from yen, for convenience only, at the rate of ¥98.23=U.S.$1, the approxima te exchange rate
prevailing on March 31, 2009 .

Net sales Net income Total assets Total net assets


36,739
33,809 3,501 29,221
35,000 3,500 30,000 20,000 18,516
17,796
30,000 28,787 3,000 25,152 25,631 16,320
2,853 25,000
2,579
21,033 15,000
25,000 23,992 2,500 13,288
20,000
2,146
20,000 2,000
17,651
15,000 14,109 10,000
15,000 1,500
6,699
10,000
10,000 1,000 944
5,000
5,000 500 5,000

0 0 0 0
’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09
(Millions of yen ) (Millions of yen ) (Millions of yen ) (Millions of yen )

Contents
The key to our success 3 Our Business 11
Our milestones 4 Our global model 15
Our message to you. 5 Board of Directors/Corporate Governance 17
Business Model 8 Financial Section 18
Where are we now? 9 Corporate Data 39
Investor Information 40
DISCLAIMER
Forward-looking statements regarding future events and performance contained in this annual report 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 technologies. Please note that
actual results could materially differ from those expressed or implied by the forward-looking statements in this annual report due to these risks and uncertainties.

3
Our milestones
May 2009 Launched Intuos4 professional pentablets
Announce of developing a new user interface device for professional DJ

Feb. 2009 The first digital notary document was signed on an CIntiq 12WX in France

Oct. 2008 Announce of development of a high performance multi-touch sensor


component
Wacom Taiwan Information Co., Ltd. (a fully owned subsidiary) is established
in Taiwan as a marketing and customer service base for Taiwan market
Sep. 2008 ECAD/dio Ver. 9.0 released

Jan. 2008 New Hewlett-Packard Company (HP) notebook PC for the consumer
market adopts Wacom Penabled DualTouch technology

Nov. 2007 Berliner Sparkasse adopts Wacom LCD signature tablet for digital
signature solution for its private client centers

Oct. 2007 Launch of Cintiq 12WX interactive pen display as a mobile companion,
and as a secondary monitor in multi-monitor environments

Sep. 2007 Celebrated 25th anniversary, and announced new growth vision and
new brand concept “Open up. Sense more.” for the future

May 2007 Bamboo, with “Certified for Windows VistaTM” compatibility, is


launched for general consumer and business PC users
Feb. 2007 Received the first “Disclosure Newcomer Award” from the Tokyo
Stock Exchange

May 2006 Wacom Singapore Pte Ltd. (a fully owned subsidiary) is established
in Singapore as a sales base for the South and Southeast Asian
markets
Wacom Hong Kong Ltd. (a fully owned subsidiary) is established
in Hong Kong as a sales base in the South China

Apr. 2006 Penabled DualPad is developed as a new pen and touch input
device for mobile information products

Dec. 2005 Our stock is listed on the First Section of the Tokyo Stock Exchange
Apr. 2005 Wacom Australia Pty. Ltd. (a fully owned subsidiary) is established in
North Ryde, NSW, Australia, as a sales base for the Oceania market
Feb. 2005 Cintiq 21UX launched, setting a new standard for digital pen-based
imaging

Apr. 2004 Wacom Digital Solutions Co., Ltd. (presently Wacom Korea Co., Ltd.,
a fully owned subsidiary) is established in Seoul as a sales base in
South Korea
Nov. 2003 HP Tablet PC adopts Wacom’s Penabled pen sensor component
Apr. 2003 Listed on the JASDAQ market

Sep. 2001 Launch of Cintiq, a line of interactive pen displays


Mar. 2000 Wacom China Corporation (a fully owned subsidiary) is established in
Beijing as a sales base in China

Nov. 1999 Launch of Graphire/FAVO, a line of consumer pen tablets

Jun. 1999 Launch ECAD/dio, a CAD system for electrical engineering

Sep. 1998 Launch of Intuos, a line of professional pen tablets


Aug. 1991 Wacom Technology Corporation (a fully owned subsidiary) is
established in Vancouver, Washington, U.S.A., as a marketing and
sales base in the Americas

Jun. 1988 Wacom Computer Systems GmbH (presently Wacom Europe GmbH,
a fully owned subsidiary) is established in Neuss, West Germany, as
a marketing and sales base in Europe
Jul. 1983 Operation of Electronic Systems and Devices (ESD) and Engineering
Collaborative Solutions (ECS) businesses begins
Wacom Co., Ltd. is established in Ageo City, Saitama, Japan, with
common stock of 48 million yen
4
Our message to you.
We are pleased to present Wacom’s Annual Report for our 26th fiscal year, representing results
from April 1, 2008 through March 31, 2009.

Our corporate vision is “creating harmony between people and technology.” We achieve this by
providing tools and inspiration to help make our world a more creative place. We’ve designed our
user interface solutions to be natural to use and people-friendly, and we are proud that our pen
tablet products are used throughout the world in some of the most amazing digital art, films,
fashion designs, medical and other industry projects.

As digital technology becomes an integral part of our lives, we know that intuitive, simple-to-use
interface solutions will play an increasingly crucial role. We want to take a fresh new look at this
brave new world and create solutions to enhance and enrich lives – supporting you to enjoy a life
of creativity.

Masahiko Yamada
President & CEO

Growth strategy
Input Near
market 1983 1990 1995 2002 2007 futu re

Internet Broadband Ubiquitous Pen Input Multi-touch

The world’s first tablet


operated by cordless Touch sencer
electronic pen components

for the Digital Paper era


developed. Electronic

the de facto standard


Core technology seals and
Tablet market

other security
Toward becoming
established with
electronic pen.
applications
Pen sensor
components
Interactive
pen displays
Tablets for ales
consumer use dS
Tablets for ent an
m
e lop
professional

Digitizer
use
Dev
and software
market
CAD

Development Technology, expertise,


and sales of ECAD and sales of PDM

・Strengthening of the leadership in tablet business


・Expansion of components business
・Improvement and global development of branding
・New Business Development, R&D

5
Wacom enhances the life experience
by creating harmony between people and technology.

6
markets maintain their growth. Also a new user interface
How did we do in our 26th year?
field is opening up as multi finger touch operation is
The 26th fiscal year was marked by the unprecedented
introduced to PC platforms by Windows 7 the new (OS)
scale of changes in the global economy. The financial crisis,
operating system from Microsoft. Taking on opportunities
rapid economic slow down and currency exchange rate
for long term growth, we will continue to invest in new
fluctuation were among these changes and Wacom’s
technologies, new business segments, as well as make
business was not free from their impact. Even today, the
further infrastructure developments.
global economy seems full of uncertainties and recovery
seems slow in coming.
Taking into account our business outlook and necessary
investments for the future, we project net sales of ¥35,500
Up to Q2, in spite of the signs of slow down, our business
million (up 5.0%), operating income of ¥3,550 million (down
grew steadily and achieved a record in revenue and profit.
17.7%), ordinary income of ¥3,500 million (down 16.2%),
However, the trend changed dramatically in Q3 as the
and net income of ¥2,130 million (down 17.4%) for the fiscal
financial crisis spread from the United States to all key
year ending March 31, 2010.
regions. Channel contraction started and the Japanese
currency appreciation gained pace. As a result, we had to
make forecast adjustments twice during the second half Your dividend
alone and closed the fiscal year with negative growth in To thank you for your support and reflecting the financial
both revenue and profit. result of the fiscal year, we offered an ordinary dividend of
¥3,000 per share to our shareholders as of March 31, 2009.
While this business result was not in line with our original Also, we completed the repurchase of 20,000 shares as
expectation, we were able to make significant progress in part of the investor return for the first time. While we will
the areas of R&D and product development. We developed manage the financial base carefully, we intend to continue
an original multi-finger touch technology that detects an stable dividend payouts and take other investor return
unlimited number of fingers with high precision and speed, measures as we see fit.
new generation digital DJ equipment “nextbeat”, as well as
the development and launch of “Intuos4 series” a new Our message to you
generation of professional pen tablets. These successful We are committed to enhancing our corporate value with
projects laid the foundation for our growth into new ongoing development of exciting new technologies, invest-
business segments. Also, we continued to enhance our ing in talented people and strengthening our business
infrastructure in emerging markets by the founding of infrastructure, thus accelerating our business growth and
Wacom Taiwan and a new logistic center in Singapore. achieving increased profitability. We also take seriously our
“Open up. Sense more,” the new corporate brand concept social responsibility as a global company and corporate
introduced in FY26 is gaining momentum and has started to citizen, and will continue to improve our corporate gover-
have positive effects on our business. At a corporate level, nance and compliance.
the settlement of Chinese IP litigation, and the J-SOX
compliant internal process were among key activities we Your support is invaluable to us and is essential to our
focused on. continuing success. We thank you very much for your
unchanging support.
As a result, for the fiscal year ending March 31, 2009, we
recorded net sales of ¥33,809 million (down 8.0%), operat-
ing income of ¥4,311 million (down 22.2%), ordinary
income of ¥4,179 million (down 25.1%), and net income of
¥2,579 million (down 26.3%).

Where are we heading in our 27th year?


For the 27th fiscal year, we expect on-going uncertainty in
the global economy. The potential risk of further deteriora-
tion and high volatility in the currency exchange rates may
become real if key regions cannot keep consistent fiscal
policies and stimulus packages. Under such circum-
stances, we take operational stability as the first priority,
and will proactively manage the business risk.

On the other hand, we are witnessing the increase in


demand for digital content on a global scale and emerging

7
Business Model

Management Platform

Marketing &
R&D
Sales

Supply Chain Product


Management Management

Electronic System & Devices Engineering Collabortavice


Business (ESD) Systems Business (ECS)
• Professional pen tablets • CAD systems for electrical
• Consumer pen tablets engineering
• Interactive pen displays • CAD systems for mechanical
• Pen sensor components engineering
• Touch sensor components
• New business development

Customers
• Graphic Design • Control Panel Industry
film, animation, comics, games, automo-
tive,advertising, broadcasting, etc
• Medical • Electrical Machinery Industry
hospitals, dental clinics,
medical offices, etc.
• Education • Machine Assembling Industry
universities, schools, prep schools,
e-learning, etc.
• Business • Automotive Industry
office systems, shop systems,
call centers, signature verification, etc.
• Administraion • Food Industry
national and local government
• Pen Sensor Technology
PCs, mobile phones, PDAs, games, • Medical Equipment Industry
ePaper, etc.
• Touch Sensor Technology
PCs, mobile phone, games,
ePaper, POS terminal, digital signage,
game console, TV, etc.

User Needs

Partnerships
• Operating Systems (OS) vendor • Display vendor
• Application vendor • Stationary goods / vendor

mage created by Ted Blore 8


Where are we now?
The next generation –
professional pen tablet Intuos4 is here!

Wacom unveiled the long anticipated Intuos4, a revolutionary new


professional pen tablet for the field of illustration, animation, web,
movie film and industrial design in March 2009. It was available
through most national electrical stores and our own online shops
from April.

The Intuos series provides indispensable functionality for high-


quality digital content production and has already received high
praise as a de-facto standard tool by professionals.
Intuos4, the highest performance professional pen tablet yet, was
developed as a design tool to offer increased precision, control and
productivity to the user. Based on analysis of the user’s work flow,
Intuos4 was designed using new User Centered product design
techniques incorporating universal design and ergonomics. It is
equipped with a newly developed IC (integrated circuit) and sensor,
which offers near-zero (one gram) starting pen pressure against the
tablet surface, as well as delivering 2,048 levels of pressure sensi-
tivity, doubling that of previous models. Intuos4 provides users with
a natural writing and drawing feel, just like traditional pencils and
paint brushes.

Wacom aims to sell 500,000 units worldwide within the first year
from when the product was launched.

We developed a high performance multi-touch sensor for


coincidence detection of multiple fingers
Wacom developed the original high performance multi-touch
sensor system which offers users the means to navigate and
control input on a computer display with multiple fingers.

Wacom applied cultivated high precision sensor technology with


pen tablet technology for the detection of multiple fingers, and
adopted the original technology for the IC controller of the touch
sensor. Wacom’s multi-touch sensor system realizes high speed
and high precision position sensing of unlimited numbers of finger
touch as well as featuring incredible stability, even when installed
in notebook PCs of which power consumption is limited in battery
mode.Windows 7, Microsoft’s next generation OS, newly supports
touch input solutions as a standard function. Wacom offers the
promising multi-touch sensor system to the market for notebooks
and desktop PCs as well as larger LCDs and aims at further
expansion of its component product sales.

9
Interactive pen displays are the centerpiece of a
new advanced concept teaching space in the
University of Queensland in Australia.

Wacom’s interactive pen displays


were adopted as the most
intuitive and flexible interface tool
available. More than 100 pen
displays were installed on all
seats and form the centerpiece in
the Advanced Concept Teaching
Space “ACTS” of the University
of Queensland in Australia.

The lecture space offers such innovative teaching services that partici-
pants can communicate via pictures and words, take notes and review
them using interactive pen displays. New lecture styles will continue to
be developed using the futuristic system described in this case study. In
Japan, about 2,600 educational institutions have already adopted a total
of 80,000 units of Wacom’s pen tablets and they are enjoying a high
standard of learning using our tools.

The first digital notary document was signed on


an interactive pen display in France.

The French Government recog-


nized the importance of digital
signature technology and the law
was enacted which authorizes
documents to be signed with a
digital signature. In the launch
ceremony of the digital notary
document system which realizes
a totally paperless process, the
first sample was signed on
Wacom’s Cintiq12WX.

The digital notary document system makes it possible to simplify and


speed up procedures in legal process. For example, while French notaries
had to autograph each legal sheet of about 40 pages in the previous
notary system, the new system needs just one digital signature for one
notary document.

Furthermore, notaries and other legal professions expect that electronic


signatures will contribute to saving paper and improving information
security.

10
Our Businesses

Our company is made up of two business sectors – Electronic Systems and Devices (ESD) and Engineering Collabora-
tive Solutions (ECS). ESD develops and manufacturers pen tablets and pen sensor components as well as touch
technologies. These are the tools that enable users to input digital data in the same way as using a traditional pen on
paper or a paint brush on canvas. ECS develops CAD-based software packages and related systems for the manufac-
turing industry.

ESD
(Electronic Systems and Devices)

We have two types of pen tablets; both open up a world multiple fingers also is being developed.
of possibilities and help our customers experience
more. Our high-performance, professional range is for Our successful and varied product line-up makes us the
specialists and skilled amateurs. Our consumer pen clear leader in the pen tablet market. We command an
tablets are for more general users and are easy and fun impressive 86 percent of the global market (our
to operate. estimate) and 95.4 percent of the Japanese market
(BCN research 2009). It will not stop there. We expect
Our interactive pen displays enable users to write, the market to accelerate substantially. Not only
draw, sketch and scribble directly on the screen. Windows Vista installed pen input function as standard,
Without getting too technical, this is due to the pen but also next generation OS Windows 7 will support
sensor being incorporated into the LCD display. Almost multi-touch input in addition. We believe our compo-
all Tablet PC manufacturers worldwide use our pen nent business will be the way forward.
sensors. Our components allow notebook PCs to be
operated with a digital pen or even with the touch of
fingers. Our multi-touch sensor system which realizes
with high-speed and high-precision, position sensing of

11
Pen tablet families
Our professional pen tablets – Intuos4
Throughout the world, our professional range is unrivalled and acknowl-
edged to be an industry standard with our unique technology, high
performance and quality. It has also been highly acclaimed by our
customers: those professionals who create inspirational movies, anima-
tion, digital art, advertisements and web designs. The Intuos4, enjoys a
high reputation for the new product design techniques, incorporating
universal design and ergonomics, as well as for a design tool to offer
high productivity to professional users.

Our consumer pen tablets – Bamboo


Bamboo, our new consumer family of pen tablets, provides a natural-
to-use tool for expressing creative ideas and communicating in a unique
and more personal way. We have used all of our skill and experience
from our professional market products to create Bamboo, incorporating
the quality and user-friendly features synonymous with our products.
Bamboo can be used and enjoyed by everyone: male or female, young
or old. Our best -selling models are Bamboo and Bamboo Fun. The
former unlocks powerful, pen-based features found in current operating
systems, particularly Microsoft Windows Vista. Bamboo Fun enables
users to intuitively draw, paint, sketch, write or retouch digital photo-
graphs. To sum it up, Bamboo is a new, fun way of working with a
computer.

Our interactive pen displays – Cintiq & DTX/PL


Providing the freedom to work with the pen directly on screen, our
interactive pen displays come in two ranges: the Cintiq, which is
designed for professional graphic artists, and the DTX/PL Series, which
is for more general users. Cintiq interactive pen displays include the high
performance and functionality and are used by many professionals from
photographers to car designers. Not just for the graphics market, these
pen tablets are also invaluable for a variety of additional tasks such as
medical recording, educational systems opening of a bank account,
digital signature and order processing.

Our Components
Not only are our pen sensor components incorporated into our own
high-quality products, but other companies use them. Our brand name
for this patented sensor technology is “Penabled.” The Penabled family
now offers user interface technology solutions to most Tablet PCs.
Moreover, we are developing a multi-touch sensor system which
realizes high performance position sensing of multiple fingers.

12
Wacom Solutions
Not only are they essential tools for graphics professionals, our pen tablets are also garnering praise in other fields,
such as healthcare, education and business. Pen input technology is changing lives by replacing the constraints of
pen and paper with the advanced functionality of digital products.

Medical care
Did you know that our interactive pen displays have become popular
in a variety of medical areas, including electronic medical charts,
pathological reports, endoscopic diagnostic systems, nursing
support, diagnostic imaging and bedside terminals? For example, by
using digital medical charts instead of conventional paper-based
records, medical information can be shared more easily within differ-
ent hospital departments. Handwritten data and sketches are also
being input digitally during interviews and surgical operations.
Crucially, this saves time and effort. These charts also significantly
reduce the storage space required for medical data and enable easy
access to important information.

Education
Presenting educational materials on a screen using a PC and a projec-
tor has become common practice in educational institutions from
primary and secondary schools, colleges and universities to profes-
sional schools, training centers and private e-learning programs. With
interactive pen displays, teachers and lecturers can write notes or
draw diagrams directly on the LCD display, which are then displayed
instantly on the large screen for all to see. In addition, the use of TV
phones and web-based whiteboards helps with remote instruction
and the online correction of student work.

Business
The use of interactive pen displays is increasingly common among
businesspeople in order centers, call centers, cosmetic and beauty
salons, corporate and governmental office reception areas and in
industrial design environments. The digital pen can be used to
capture information during face-to-face meetings with customers,
where data in a corporate style can be entered using a handwriting
interface. This is simply not possible with a keyboard. Consequently,
our pen technology is opening up fresh opportunities in the business
arena.

Meetings and presentations


Using an interactive pen display can bring meetings and presenta-
tions to life. During discussions, digital data can be viewed on an LCD
and notes and amendments added and stored spontaneously during
the meeting. Not only can the use of such a product help speed up
decision-making and communication, but it can also prevent the need
for large volumes of photocopying. Using a digital pen to highlight
information in real time makes the message stronger, more immediate
and easier to comprehend.

13
Lovely 3D graphics
characters harmonized
with inspiration and
technology
Mr. Hiroshi Yoshii is one of the most promising illustrator
and character designers in Japan. He began to use the
Wacom pen tablet in 1992. He always uses three units
of the professional pen tablet, “Intuos4” as well as
“Cintiq 12WX”.
He had been known as a user of Corel’s “Painter”
before, however, has shifted to 3D graphics recently.
Now he prefers “ZBrush” and “modo”, specializing in
crystallizing graphic characters for his clients’ needs
with little direction.
His current work is a short animation series, “YANS!
GANS! (MEAT OR DIE)” in charge of character design.

ECS
Our ECS business develops CAD systems for electrical engineering firms that specialize in the design of electrical appliances and
control equipment, as well as mechanical engineering firms.
ECAD/dio, Japan’s leading CAD system for electrical design, streamlines overall operations by helping users to create electrical
system design diagrams, while synchronizing design data with control equipment and peripheral devices.

Sales Design/
ning/ Deve
Plan lop
m en
t
Meta-Info/ ECAD/dio
Mitsumori BOM Bus
Ban-chan Parts management
wiring list

Library
LANDMARK VIEW
ain
M

Harness Designer WIRE-CAM


te n SolidWorks Routing
anc
e/M
arket
ECAD/dio Demand tu ring
Manufac

14
Our global model

Back in the 1980s, we set up our corporate headquarters in Japan. We extended our global operations to the United
States and Germany, and then expanded to China, Korea, Australia, Singapore, Hong Kong and Taiwan. In addition to
these subsidiaries, we also have sales bases in Shanghai and Moscow. Each of our regional subsidiaries performs
multiple functions. These functions are carried out with localized execution approaches and staff to help forge close
regional ties. We believe that this balanced approach between global strategy and localized execution maximizes our
strength as a global company and helps us to continually offer dynamic products and services that exceed customer
expectations. This has been proven by the fact that the percentage of our overseas sales was 77.9% in our 26th fiscal
year.

Our market is global, and therefore it is vital to our The development of our driver software is performed in
success that we continue to enhance our global organi- the United States. Here, we are close to all the global
zations and optimize our business models to offer OS developers, such as Microsoft and Apple, as well as
leading technology, and the most competitive products leading software application developers. This proximity
in terms of features, quality and value across the globe. allows us to work in close partnership with these
companies in developing emerging OS and application
Marketing and product management standards.
The United States is home to the world’s most advanced
computer graphics market, so naturally this is where we Manufacturing
concentrate on building new partnerships and planning We focus on developing optimal manufacturing models
new professional products. The focus for our consumer for cost, scalability and product quality leadership. To
products is different however. For our consumer achieve this, all critical components continue to be
products, we focus on Europe, which covers the widest made by Wacom, and all high-volume manufacturing is
range of use patterns and is the most competitive done by partners in China and Taiwan. These manufac-
market, and Japan, where consumers are keen for new turing partners are under the guidance of our QA
trends and demand highly sophisticated products. division to ensure the highest and most consistent
Asia/Oceania, typical of an emerging region, shows very product quality. We also have a supply chain manage-
strong demand in the corporate sector. Therefore, our ment (SCM) base in China.
current emphasis in this region is on business products.
We regularly organize global executive conferences for
Product development strategic planning, business updates and knowledge-
Japan is where we develop most of our technology and sharing. These conferences provide a platform for us to
design hardware products. This is due to the country’s build and promote our corporate vision and business
strong infrastructure for technological development, as strategies, and reinforce our company’s global position
well as its geographic location being close to our main as the industry leader.
manufacturing bases in China and Taiwan.
15
Others Others Asia/Oceania
9.5%

Europe Japan
23.7% 37.8%
Wacom
Wacom
86%
95.4%

America
29.0%
Global Market Share Domestic Market Share Sales Breakdown by Region
Source: Wacom’s estimate
Source: BCN research

(Millions of yen)

08
6 30 6 41
7
44
9
99
5
25
4
69
1
22
4 30 70 73
9, ,0 81 6, 8, 7, 2, 3, 3, ,0 ,5 ,7
11 9, 11 13 12
55 44 58 88 91 58
,6 ,6 ,5 ,6 ,1 ,3
77 96 97 42 52 55

’07 ’08 ’09 ’07 ’08 ’09 ’07 ’08 ’09 ’07 ’08 ’09

America Europe Asia/Oceania Japan

For the year ended March 31

Wacom Technology Corporation Wacom Korea Co., Ltd.


Wacom Technology Corporation was established in 1991 in Vancouver, Wacom Korea Co., Ltd. was established in 2004 in Seoul,
Washington, in the United States. The company is not only responsible South Korea as Wacom Digital Solutions in order to enhance
for sales and customer support in North and Latin America, but also sales in the South Korean market.
plays a central role in global marketing and product planning for South Korea is the most advanced country in the world in
professional pen tablets, and the development of driver software. Internet usage and the market is expected to grow further.

Wacom Europe GmbH Wacom Australia Pty. Ltd.


Wacom Europe GmbH was established in 1988 in Neuss, Germany, and Wacom Australia Pty. Ltd. was established in April 2005 in North Ryde,
was subsequently moved to Krefeld. The company is responsible for NSW, Australia, as a sales base for the Oceania market.
sales and customer support in the European, Middle Eastern, and
African markets and also plays a key role in global marketing and Wacom Singapore Pte Ltd.
product planning for consumer pen tablets. The company provides Wacom Singapore Pte Ltd. was established in May 2006 in Singapore
market support in eight languages. as a sales base for South and Southeast Asia.

Wacom China Corporation Wacom Hong Kong Ltd. (Hong Kong)


Wacom China Corporation was established in 2000 in Beijing. The Wacom Hong Kong Ltd. was established in May 2006 in
company established and implemented a unique sales strategy for Wanchai, Hong Kong, as a sales base for Hong Kong market.
low-price tablets in the Chinese market. Its Shanghai Office is respon-
sible for sales in the southern region of China as well as the component Wacom Taiwan Information Co., Ltd. (Taiwan)
business nationwide. Wacom Taiwan Information Co., Ltd. was established in October 2008
in Taipei, Taiwan, as a marketing and customer service base of tablet
and component business for Taiwan market.

16
Our Team – The Board of Directors, Corporate Auditors
and Executive Officers / Corporate Governance

Board of Directors
(From the left)
Sadao Yamamoto, Masahiko Yamada,
Yasuyuki Fujishima, Shigeki Komiyama,
Takeshi Oki, Wataru Hasegawa

Corporate Auditors
Haruo Mizuno (Full-time), Takeshi Ebitani, Takashi Kamura

Executive Officers
Masahiko Yamada CEO, Shigeki Komiyama Global Marketing and Sales Division, Wataru Hasegawa Chief Financial Officer,
Sadao Yamamoto R&D Division, Takeshi Oki General Affairs Division, Hidetoshi Kamoto Component Business Division, Yuji
Wakabayashi ECS Division, Masahiro Oba Supply Chain Management Division, Koji Shimoda Product Management Division,
Joseph Deal Wacom Technology Corporation, Han Stoffels Wacom Europe GmbH

Corporate Governance
The Board of Directors and Board of Corporate upon actions. The Internal Audit Office, overseen by the
Auditors are responsible for corporate governance at Chief Executive Officer, is responsible for auditing the
Wacom. We currently have six directors, including one compliance of each of our companies with regard to
non-executive director. We have three independent laws, regulations and social values, together with
corporate auditors and one full-time corporate auditor. ensuring adherence to the Company’s rules. In
In addition, to ensure the smooth running of our addition, the Risk Management Committee is respon-
business, we have introduced a corporate executive sible for the internal control of compliance, information
officer team with clearly-defined responsibilities. The security, risk management and elimination of anti-social
Corporate Management Meetings, comprising the activity. Furthermore, we have established a risk hotline
executive officers and chief general managers, are held system, operated by an independent organization, to
twice a month to supervise the implementation of the monitor and minimize potential damage associated with
business plan, control the budget and review agreed- compliance risks.

Execution of Operations, Audit, and Internal Control Systems as of July 1, 2009

General Meeting of Shareholders

Election/dismissal Report Election/dismissal


Election/dismissal

Board of Corporate Auditors Operating audit Board of Directors Accounting audit


(3 Auditors) (6 Directors ) Accounting Auditors
Accounting audit
Cooperation

Cooperation
Chief Executive Officer

Internal Audit Office Risk Management Committee


Corporate Management Meeting
(11 Executive Officers)
Risk Hotline

17
Financial
Section

Contents
19 Five-Year Summary
20 Overview of Business Performance
23 Consolidated Balance Sheets
25 Consolidated Statements of Income
26 Consolidated Statements of Changes in Net Assets
27 Consolidated Statements of Cash Flows
28 Notes to Consolidated Financial Statements
38 Report of Independent Auditors
39 Corporate data
40 Investor Information

18
Five-Year Summary
Wacom Co., Ltd. and Its Subsidiaries

Five-Year Summary
Thousands of
Thousands of yen U.S. dollars*
Year ended
Year ended March 31 March 31
2005 2006 2007 2008 2009 2009
For the year:
Net sales ¥17,650,932 ¥23,992,206 ¥28,787,066 ¥36,739,196 ¥33,809,138 $344,183
Gross profit 8,926,708 11,970,762 15,027,641 18,640,355 16,761,164 170,632
Operating income 1,841,358 3,424,365 4,564,593 5,538,871 4,311,378 43,891
Income before income taxes 1,717,237 3,400,678 4,738,219 5,564,082 4,179,661 42,550
Net income 944,392 2,145,821 2,853,274 3,501,360 2,579,025 26,255
At year end:
Cash and cash equivalents 4,233,187 10,342,643 12,707,153 13,577,194 11,014,114 112,126
Total net assets 6,698,503 13,287,904 16,320,081 18,516,742 17,796,487 181,172
Total assets 14,109,303 21,032,863 25,152,191 29,221,330 25,631,057 260,929

Net income per share


(yen and U.S. dollars):**
Basic 9,826.49 5,420.51 6,886.19 8,348.74 ¥6,213.93 $63.26
Diluted 9,386.80 5,283.96 6,784.24 8,304.38 ¥6,197.78 $63.09

Equity ratio(%)*** 47.5 63.2 64.9 63.5 69.4


Return on equity (%) 15.2 21.5 19.3 20.1 14.2
Number of employees 436 465 511 584 637

*Note 1: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥98.23=U.S.$1, the approximate exchange rate prevailing on March 31, 2009.
**Note 2: Common shares were split on a five-for-one basis on November 20, 2003 and a four-for-one basis on November 18, 2005.
***Note 3: 20,000 shares were repurchesed as treasury stock for 1.85BJPY in 2009.3 F.Y..

Net sales Gross profit/Gross profit margin Operating income/Operating margin


(Millions of yen) (Millions of yen) (%) (Millions of yen) (%)
40,000 20,000 55 6,000 30
36,739 18,640 5,539
52.2
35,000 33,809 16,761
50.6 50.7 5,000 25
15,028 49.6 4,565
30,000 28,787 15,000 50 4,311
49.9
4,000 20
25,000 23,992 11,971
3,424
15.9
15.1
20,000 10,000 45 3,000 14.3 15
17,651 8,927
12.8
15,000 10.4
2,000 10
1,841
10,000 5,000 40

1,000 5
5,000

0 0 35 0 0
’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09

(For the year’s ended March 31) (For the year’s ended March 31) (For the year’s ended March 31)

19
Overview of Business Performance
Wacom Co., Ltd. and Its Subsidiaries

How did the global economy affect Net income per share (basic)
(Millions of yen)
our business in our 26th year? 10,000

Despite a sudden rise in materials our business in fiscal 2008, 8,349


the year ended March 31, 2009 was satisfactory with the 8,000
highest sales and net profit as a 1H result. On the other hand, 6,886
6,214
we for the 2H faced the drastic global economic drop of the
6,000
century, due to the global recession, caused by the financial 5,421
crisis in the US in addition to a rapid appreciation of the
Japanese yen against other currencies. 4,000

2,457
The Japanese economy entered a recessionary phase for the
2,000
first time in six years, due to a decrease of corporate invest-
ment in plant and equipment and sluggish consumer
consumption. In the US., an unprecedented deepening of the 0
’05 ’06 ’07 ’08 ’09
financial crisis led to the bankruptcies of several major Note: Common shares were split on a four-for-one basis on November
financial institutions, which in turn caused a further reduction    18,2005. Per share data before 2005.3.F.Y.term reflect the above
   share splits.
in consumer spending, a corresponding decline in corporate
profit and a credit crunch. The EU area also experienced the
(For the year’s ended March 31)
first recession since the introduction of Euro currency, despite
steady growth in Germany at the beginning of the period. The ROE/ROA
economy in Asia-Oceania countries showed a slowdown of
(%)
growth due to the Sichuan earthquake in China and the global 25
recession as well as rapid depreciations of Asian local curren-
21.5
cies, despite steady economic growth in China and India. 20.1
20 19.3
Under the above conditions, our performance in fiscal 2008
15.2 (ROE)
was lower compared to the previous fiscal year although the 14.2
15
Company made the greatest efforts in reducing spending and
so on. (ROA)
12.2 12.4 12.9
10
On the technology development side, we devoted itself to 9.4
developing the touch technology with its own IC technologies
5 7.0
for Microsoft’s next OS, Windows 7. The high-performance
multi-touch sensor technology was announced at WinHEC
(Windows Hardware Engineering Conference) in November, 0
’05 ’06 ’07 ’08 ’09
2008. In new business development, we also developed and Note 1: ROA equals net income/average total assets.
announced the launch of a professional DJ interface device, Note 2: During its 23rd fiscal year, the Group procured through a
public offering approximately 4.2 billion yen in capital funds
“nextbeat” which is scheduled for an initial release in Japan by allocating new shares to a third party.
and Europe next summer. In March, 2009 we announced the
(For the year’s ended March 31)
“Intuos4”, the latest product of the company’s main model
Intuos series for the professional graphics field in four and a Equity ratio
half years. The “Intuos4”, enjoys a high reputation for a design
(%)
tool to offer high productivity to professional users. 80
In the ASEAN area, we established a subsidiary in Taiwan and
its logistic base in Singapore to enhance sales, marketing and
69.4
customer service. For the intellectual property, we filed patent 70
64.9
63.2 63.5
infringement lawsuits against Hanwang Technology Corpora-
tion and entered into a comprehensive settlement agreement
60
in April, 2008. We also enjoyed a smooth start for compliance
with the Financial Instruments and Exchange Law (J-SOX)
from the beginning of fiscal 2008. 50
47.5

As a result, the consolidated business results ended in sales of


40
¥33.81bn (-8.0% YoY), OP ¥4.31bn (-22.0% YoY), recurring
profit ¥4.18bn (-25.1% YoY), and net profit ¥2.58bn (-26.3%
YoY). 30
’05 ’06 ’07 ’08 ’09

(For the year’s ended March 31)

20
Overview of Business Performance
Wacom Co., Ltd. and Its Subsidiaries

Our results by business sector Sales Breakdown by Business (Millions of yen)

Electronic Systems and Devices (ESD)


business 2008
ESD Business 97.6%
Global sales of our pen tablets recorded lower sales compared ¥36,739
to the previous fiscal year, due to the significant appreciation of ECS Business 2.4%
the Japanese yen, despite its steady distribution.

In the professional graphics segment, total sales decreased 2009


compared to the previous fiscal year, due to the slowdown in ESD Business 97.8%
¥33,809
sales of “Inuos3” in 2H, although the new product “Inuos4” ECS Business 2.2%
was released and received a high evaluation in March. On the
consumer tablet side, the “Bamboo” series, which was
(For the year’s ended March 31)
released in the previous fiscal year, recorded a slight sales
decrease despite the steady distribution achieved by
constantly launching new products. As for LCD tablets, despite
a sharp slowdown in corporate demand, sales kept to the
ESD Business (Millions of yen)
same level and the volume increased considerably compared
with the previous fiscal year, thanks to the introduction of a DOWN 7.8%
professional LCD tablet “Cintiq 12WX” released in 2007, and ’08 35,843
the favorable sales of a new product “DTU-1931”. Sales
’09 33,058
With regards to the components business, whose major
customers are Tablet PC manufacturers, our pen-sensor
components experienced drastic changes in the business DOWN 22.0%
environment between 1H and 2H. Although the components ’08
’07 7,961
Operating
sales of Tablet PCs for consumers expanded until 1H, its result income
for the full business year decreased due to the global economic ’09 6,211
slowdown, the appreciation of the Japanese yen and the
change of the competitive environment.
(For the year’s ended March 31)
As a result, the ESD business sales ended at ¥33.06bn (-7.8%
YoY), and operating profit ¥6.21bn (-22.0% YoY).

Engineering Collaborative Solutions (ECS) ECS Business (Millions of yen)

business DOWN 16.3%


ECS released its latest product “ECAD / dio” Ver. 9.0 which
was significantly improved in its operability and functionality in
’08 897
Sales
September as an electronic design segment of the CAD ’09 751
market. The business provided incentives for existing users to
upgrade, and for other CAD product users to replace their
existing software with “ECAD / dio”. In addition there was DOWN 64.9%
improvement of ECS website and domestic exhibitions. ’08 140
However, the sales remained at a lower level due to the Operating
income
remarkable decrease of corporate investments in 2H. For the ’09 49
PDM market, the business proposed new solutions and
promoted software packages to existing users. However, our
ECS business decided on the cessation of sales activities due (For the year’s ended March 31)
to a remarkable sales decrease.
As a result, the ECS business sales ended at ¥751mn (-16.3%
YoY) and OP ¥49mn (-64.9% YoY).

21
Our financial position Cash f lows from operating activities
(Millions of yen)

Total assets decreased by ¥3.59bn to ¥25.63bn compared 4,000


3,758
with the end of the previous fiscal year. The main reasons 3,500
3,461
were a ¥1.85bn decrease in cash and cash equivalents due to
repurchase of own shares and a ¥0.94bn decrease in total of 3,000
notes and accounts receivable and inventories.
2,500 2,270
Total liabilities decreased by ¥2.83bn to ¥7.83bn compared
with the end of the previous fiscal year. The main reasons 2,000
were a ¥1.82bn decrease in notes and accounts payable and 1,478
1,500
a ¥748mn decrease in accrued income tax. 1,162
Total net assets decreased by ¥765mn to ¥17.80bn. The 1,000
main reasons were a ¥1.85bn of repurchase of own shares, a
¥1.05bn payment of shareholders’ dividends, and a 585mn 500

decrease in foreign currency translation adjustments despite a 0


¥2.58bn increase in retained earnings. ’05 ’06 ’07 ’08 ’09

(For the year’s ended March 31)


Consolidated cash & cash equivalents decreased by ¥2.56bn
(+870mn YoY) to ¥11.01bn compared with the end of the
previous fiscal year.

(Cash Flow from Operating Activities) Cash f lows from investing activities
Earned operating cash flow was ¥1.48bn (3.46bn in the (Millions of yen)

previous year). The main reasons were ¥4.18bn of NPBT, an 0

increase in ¥2.26bn of corporate tax paid. -24


-100
(Cash Flow from Investing Activities) -93
Investing cash flow was ¥1.17bn (1.54bn in the previous -200
year). The main reason was the purchase of fixed assets of
¥956mn. -300
(Cash Flow from Financing Activities) -323
Financing cash flow was ¥2.68bn (511mn in the previous -400
year). The main reasons were a repurchase of own shares of
¥1.85bn and a payment of shareholders’ dividends of -1000

¥1,05bn. -1,174
-1500

-1,539
-1600
’05 ’06 ’07 ’08 ’09

(For the year’s ended March 31)

Cash Dividends per Share / Payout Raito


Cash Dividends per share(yen)
Pay out Raito(%)
Cash f lows from f inancing activities
48.3 (Millions of yen)
40
4,000 3,720
29.9
3,000 30 3,000
3,000
21.8 2,500
20.4 2,000
18.4 20
2,000
1,500
1,000
1,000
1,000 10
500 0

0
’05 ’06 ’07 ’08 ’09 -1,000 -723 -511

(For the year’s ended March 31)


-1,229
-2,000

-3,000
-2,676
’05 ’06 ’07 ’08 ’09

(For the year’s ended March 31)

22
Consolidated Balance Sheets
Wacom Co., Ltd. and Its Subsidiaries

Thousands of
U.S. dollars
Thousands of yen (Note 1)
March 31 March 31
2008 2009 2009

Assets:
Current assets -
Cash and deposits (Note 14) ¥8,078,235 ¥9,994,114 $101,742
Notes and accounts receivable-trade 4,537,959 3,897,615 39,678
Short-term investment securities (Notes 2 and 5) 5,500,000 1,520,000 15,474
Inventories (Note 2 and 4) 3,373,683 - -
Merchandise and finished goods (Note 2 and 4) - 2,164,512 22,035
Work in process (Note 2 and 4) - 162,442 1,654
Raw materials and supplies (Note 2) - 747,434 7,609
Deferred tax assets (Note 15) 825,339 734,755 7,480
Other 2,023,911 1,623,022 16,523
Allowance for doubtful accounts (Note 2) (31,094) (35,689) (364)
Total current assets 24,308,033 20,808,205 211,831

Noncurrent assets -
Property, plant and equipment: (Note 2)
Buildings and structures 3,144,716 3,553,377 36,174
Accumulated depreciation (1,592,115) (1,685,860) (17,162)
Buildings and structures, net 1,552,601 1,867,517 19,012
Machinery, equipment and vehicles 186,144 180,529 1,838
Accumulated depreciation (93,491) (93,585) (953)
Machinery, equipment and vehicles, net 92,653 86,944 885
Tools, furniture and fixtures (Note 4) - 1,728,011 17,591
Accumulated depreciation - (1,190,212) (12,116)
Tools, furniture and fixtures, net - 537,799 5,475
Land 1,454,588 1,452,507 14,787
Construction in progress 28,804 25,390 258
Other (Note 4) 1,454,331 - -
Accumulated depreciation (1,079,531) - -
Other, net 374,800 - -
Total property, plant and equipment 3,503,446 3,970,157 40,417
Intangible assets:
Goodwill (Notes 2 and 22) 180,021 110,098 1,121
Other 563,954 538,427 5,482
Total intangible assets 743,975 648,525 6,603
Investments and other assets:
Investment securities (Notes 2 and 5) 536,429 35,277 359
Deferred tax assets (Note 15) 3,412 4,480 46
Other 128,258 166,331 1,693
Allowance for doubtful accounts (Note 2) (2,223) (1,918) (20)
Total investments and other assets 665,876 204,170 2,078
Total noncurrent assets 4,913,297 4,822,852 49,098

Total assets ¥29,221,330 ¥25,631,057 $260,929

The accompanying notes are an integral part of these financial statements.

23
Thousands of
U.S. dollars
Thousands of yen (Note 1)
March 31 March 31
2008 2009 2009

Liabilities:
Current liabilities -
Notes and accounts payable-trade ¥5,717,425 ¥3,895,717 $39,659
Short-term loans payable (Note 7) 600,000 600,000 6,108
Income taxes payable 1,163,242 414,881 4,224
Provision for bonuses (Note 2) 475,189 343,537 3,497
Provision for directors' and statutory corporate auditors’ bonuses (Note 2) 23,695 - -
Other 1,731,738 1,613,275 16,423
Total current liabilities 9,711,289 6,867,410 69,911

Noncurrent liabilities -
Deferred tax liabilities (Note 15) 191,050 115,334 1,174
Provision for retirement benefits (Notes 2 and 8) 370,605 420,151 4,277
Provision for directors' and statutory corporate auditors’ retirement benefits (Note 2) 379,343 429,227 4,370
Other 7,301 2,448 25
Total noncurrent liabilities 948,299 967,160 9,846
Total liabilities 10,659,588 7,834,570 79,757

Net Assets:
Shareholders' equity (Note 13) -
Capital stock 4,082,842 4,195,345 42,709
Capital surplus 3,924,258 4,036,759 41,095
Retained earnings 10,853,924 12,297,513 125,191
Treasury stock - (1,848,486) (18,818)
Total shareholders' equity 18,861,024 18,681,131 190,177
Valuation and translation adjustments -
Foreign currency translation adjustment (Note 2) (299,282) (884,644) (9,005)
Total valuation and translation adjustments (299,282) (884,644) (9,005)
Total net assets 18,561,742 17,796,487 181,172

Total liabilities and net assets ¥29,221,330 ¥25,631,057 $260,929

The accompanying notes are an integral part of these financial statements.

24
Consolidated Statements of Income
Wacom Co., Ltd. and Its Subsidiaries

Thousands of
U.S. dollars
Thousands of yen (Note 1)
Year ended March 31 Year ended March 31
2008 2009 2009

Net sales ¥36,739,196 ¥33,809,138 $344,183


Cost of sales (Notes 9 and 20) 18,098,841 17,047,974 173,552
Gross profit 18,640,355 16,761,164 170,632
Selling, general and administrative expenses (Notes 10, 11 and 20) 13,101,484 12,449,786 126,741
Operating income 5,538,871 4,311,378 43,891

Non-operating income:
Interest and dividends income 159,069 85,102 866
Other 32,278 27,638 281
Total non-operating income 191,347 112,740 1,147

Non-operating expenses:
Interest expenses 12,291 12,375 126
Foreign exchange losses 117,369 204,410 2,081
Other 19,354 28,264 287
Total non-operating expenses 149,014 245,049 2,494

Ordinary income 5,581,204 4,179,069 42,544

Extraordinary income:
Gain on sales of noncurrent assets (Note 12) 108 155 2
Reversal of allowance for doubtful accounts 91,537 - -
Settlement received - 14,217 145
Total extraordinary income 91,645 14,372 147

Extraordinary loss:
Loss on sales of noncurrent assets (Note 12) 1,517 446 5
Loss on retirement of noncurrent assets (Note 12) 11,759 13,334 136
Loss on valuation of investment securities 20,000 - -
Provision for directors' retirement benefits for prior periods 75,491 - -
Total extraordinary losses 108,767 13,780 141

Income before income taxes 5,564,082 4,179,661 42,550

Income taxes-current 2,190,198 1,528,131 15,557


Income taxes-deferred (127,476) 72,505 738
Total income taxes 2,062,722 1,600,636 16,295

Net income ¥3,501,360 ¥2,579,025 $26,255

The accompanying notes are an integral part of these financial statements.

25
Consolidated Statements of Changes in Net Assets
Wacom Co., Ltd. and Its Subsidiaries

Thousands of
U.S. dollars
Thousands of yen (Note 1)
Year ended March 31 Year ended March 31
2008 2009 2009

Shareholders' equity:
Capital stock -
Balance at the end of previous period ¥3,988,001 ¥4,082,842 $41,564
Changes of items during the period:
Issuance of new shares 94,841 112,503 1,145
Total changes of items during the period 94,841 112,503 1,145
Balance at the end of current period 4,082,842 4,195,345 42,709
Capital surplus -
Balance at the end of previous period 3,829,418 3,924,258 39,950
Changes of items during the period:
Issuance of new shares 94,840 112,501 1,145
Total changes of items during the period 94,840 112,501 1,145
Balance at the end of current period 3,924,258 4,036,759 41,095
Retained earnings -
Balance at the end of previous period 7,980,608 10,853,924 110,495
Effect of changes in accounting policies applied to foreign subsidiaries - (29,344) (299)
Changes of items during the period:
Dividends from surplus (628,044) (1,050,390) (10,693)
Net income 3,501,360 2,579,025 26,255
Change of scope of consolidation - (55,702) (567)
Total changes of items during the period 2,873,316 1,472,933 14,995
Balance at the end of current period 10,853,924 12,297,513 125,191
Treasury stock -
Balance at the end of previous period - - -
Changes of items during the period:
Purchase of treasury stock - (1,848,486) (18,818)
Total changes of items during the period - (1,848,486) (18,818)
Balance at the end of current period - (1,848,486) (18,818)
Total shareholders' equity -
Balance at the end of previous period 15,798,027 18,861,024 192,009
Effect of changes in accounting policies applied to foreign subsidiaries - (29,344) (299)
Changes of items during the period:
Issuance of new shares 189,681 225,004 2,290
Dividends from surplus (628,044) (1,050,390) (10,693)
Net income 3,501,360 2,579,025 26,255
Change of scope of consolidation - (55,702) (567)
Purchase of treasury stock - (1,848,486) (18,818)
Total changes of items during the period 3,062,997 (150,549) (1,533)
Balance at the end of current period 18,861,024 18,681,131 190,177
Valuation and translation adjustments
Foreign currency translation adjustment -
Balance at the end of previous period 522,054 (299,282) (3,047)
Changes of items during the period:
Net changes of items other than shareholders' equity (821,336) (585,362) (5,958)
Total changes of items during the period (821,336) (585,362) (5,958)
Balance at the end of current period (299,282) (884,644) (9,005)
Total valuation and translation adjustments -
Balance at the end of previous period 522,054 (299,282) (3,047)
Changes of items during the period:
Net changes of items other than shareholders' equity (821,336) (585,362) (5,958)
Total changes of items during the period (821,336) (585,362) (5,958)
Balance at the end of current period (299,282) (884,644) (9,005)
Total net assets -
Balance at the end of previous period 16,320,081 18,561,742 188,962
Effect of changes in accounting policies applied to foreign subsidiaries - (29,344) (299)
Changes of items during the period:
Issuance of new shares 189,681 225,004 2,290
Dividends from surplus (628,044) (1,050,390) (10,693)
Net income 3,501,360 2,579,025 26,255
Change of scope of consolidation - (55,702) (567)
Purchase of treasury stock - (1,848,486) (18,818)
Net changes of items other than shareholders' equity (821,336) (585,362) (5,958)
Total changes of items during the period 2,241,661 (735,911) (7,491)

Balance at the end of current period ¥18,561,742 ¥17,796,487 $181,172

The accompanying notes are an integral part of these financial statements.

26
Consolitated Statements of Cash Flows
Wacom Co., Ltd. and Its Subsidiaries

Thousands of
U.S. dollars
Thousands of yen (Note 1)
Year ended March 31 Year ended March 31
2008 2009 2009

Net cash provided by (used in) operating activities :


Income before income taxes ¥5,564,082 ¥4,179,661 $42,550
Depreciation and amortization 518,500 664,439 6,764
Increase (decrease) in allowance for doubtful accounts (107,147) 14,254 145
Increase (decrease) in provision for bonuses 5,599 (125,070) (1,273)
Increase (decrease) in provision for directors' bonuses (6,105) (23,695) (241)
Increase (decrease) in provision for retirement benefits 43,175 48,912 498
Increase (decrease) in provision for directors' retirement benefits 126,428 57,382 584
Interest and dividends income (159,069) (85,102) (866)
Interest expenses 12,291 12,375 126
Foreign exchange losses (gains) 22,227 (78,350) (798)
Loss (gain) on sales and retirement of noncurrent assets 13,168 13,625 139
Loss (gain) on valuation of investment securities 20,000 - -
Decrease (increase) in notes and accounts receivable-trade (618,776) 737,805 7,511
Decrease (increase) in inventories (1,539,455) (36,483) (371)
Increase (decrease) in notes and accounts payable-trade 1,993,906 (1,623,667) (16,529)
Other, net (120,962) (84,487) (861)
Sub total 5,767,862 3,671,599 37,378
Interest and dividends income received 151,422 79,379 808
Interest expenses paid (11,153) (12,424) (126)
Income taxes paid (2,447,508) (2,260,908) (23,017)
Net cash provided by (used in) operating activities 3,460,623 1,477,646 15,043
Net cash provided by (used in) investing activities :
Purchase of property, plant and equipment (414,760) (955,752) (9,730)
Purchase of intangible assets (6,389) (200) (2)
Purchase of software (186,407) (197,934) (2,015)
Proceeds from sales of noncurrent assets 3,111 7,479 76
Purchase of investments in subsidiaries (420,216) - -
Purchase of investment securities (500,000) - -
Payments for lease and guarantee deposits (28,121) (50,325) (512)
Proceeds from collection of lease and guarantee deposits 15,337 23,022 234
Other, net (1,123) - -
Net cash provided by (used in) investing activities (1,538,568) (1,173,710) (11,949)
Net cash provided by (used in) financing activities :
Repayments of long-term loans payable (70,000) - -
Proceeds from issuance of common stock 186,915 222,293 2,263
Purchase of treasury stock - (1,852,061) (18,854)
Cash dividends paid (627,869) (1,046,500) (10,654)
Net cash provided by (used in) financing activities (510,954) (2,676,268) (27,245)
Effect of exchange rate change on cash and cash equivalents (541,060) (190,748) (1,941)
Net increase (decrease) in cash and cash equivalents 870,041 (2,563,080) (26,092)
Cash and cash equivalents at beginning of year 12,707,153 13,577,194 138,218

Cash and cash equivalents at end of year (Note 14) ¥13,577,194 ¥11,014,114 $112,126

The accompanying notes are an integral part of these financial statements.

27
Notes to Consolidated Financial Statements
Wacom Co., Ltd. and Its Subsidiaries

1. Basis of presenting consolidated financial There are no unconsolidated subsidiaries or affiliates


statements: accounted for by the equity method in the previous fiscal
The accompanying consolidated financial statements years for consolidations.
have been prepared from the consolidated financial
statements of Wacom Co., Ltd. (the “Company”) and its The fiscal year end of Wacom China Corporation is
subsidiaries filed with the Director of the Kanto Local December 31. However, for consolidation purposes, the
Finance Bureau in accordance with the Financial provisional settlement of accounts as of March 31 is
Instruments and Exchange Law of Japan and its related utilized.
accounting regulations, and in conformity with account-
ing principles and practices generally accepted in Japan, (2) Valuation methods for major assets -
which are different in certain respects from the applica- (a) Securities:
tion and disclosure requirements of International Finan- Securities held by the Company and its subsidiaries are
cial Reporting Standards. classified as follows:

The consolidated financial statements are stated in Held-to-maturity debt securities are stated at cost after
Japanese yen, the currency of the country in which the accounting for any premium or discount at acquisition,
Company is incorporated and principally operates. The which is amortized over the period to maturity.
translation of Japanese yen amounts into U.S. dollar
amounts is included solely for the convenience of the Other securities for which market price or quotations are
readers outside Japan and has been calculated at the not available are stated at cost based on the moving-
rate of JP¥98.23 = U.S.$1.00, the approximate rate of average method.
exchange on March 31, 2009. Such translations should
not be construed as representations that the Japanese (b) Derivatives:
yen amounts could have been or could be converted into All derivatives are stated at fair value, with changes in fair
U.S. dollars at that or any other rate. value included in net profit or loss in the period in which
they arise.
2. Summary of significant accounting policies:
(1) Principles of consolidation - (c) Inventories:
The consolidated financial statements include the Inventories held by the Company are stated at the lower
accounts of the Company and all of its majority-owned of cost or realizable value, cost is mainly determined by
subsidiaries (8 Companies). Majority-owned subsidiaries the gross average method.
are as follows;
(Accounting changes)
● Wacom Europe GmbH “Accounting Standard for Measurement of Inventories”
● Wacom Technology Corporation (Accounting Standards Board of Japan Statement No. 9,
● Wacom China Corporation
issued on July 5, 2006) has been adopted effective for
● Wacom Korea Co., Ltd.
the fiscal year ended March 31, 2009. As a result,
● Wacom Australia Pty. Ltd.
operating profit , ordinary income and income before
● Wacom Hong Kong Ltd.
income taxes decreased by ¥40,330 thousand ($411
● Wacom Singapore Pte. Ltd.
thousand) compared with what would have been
● Wacom Taiwan Information Co., Ltd.
reported under the previous accounting policy that
inventories held by the Company had been stated at
In May 2007, the Company acquired 100% of the issued cost. The impact on segment information is explained in
shares of Touchscreen Konnection Oasis, Inc. Note 20.
(TouchKO). The consolidated financial statements of the
Company include TouchKO for the fiscal year ended (3) Depreciation and amortization of major assets -
March 31, 2008. (a) Property, plant and equipment:
The Company adopted the declining-balance method at
The Company established Wacom Taiwan Information rates based on the estimated useful lives of the assets.
Co., Ltd. in 2008, it is included in the consolidated However, depreciation of buildings acquired by the
financial statements for the fiscal year ended domestic company after April 1, 1998 is computed using
March 31, 2009. the straight-line method.

Wacom Components Europe Ltd. was liquidated in 2008. Depreciation of the foreign consolidated subsidiaries is
It is excluded from the consolidated financial statements computed in the straight-line method over estimated
for the fiscal year ended March 31, 2009. useful lives.

Wacom Digital Solutions Co., Ltd. changed its Useful lives of major classes of property, plant and
company’s title name to Wacom Korea Co., Ltd in April equipment are as follows:
2008. Buildings and structures 3 to 65 years
Machinery, equipment and vehicles 3 to 7 years
Tools, furniture and fixtures 2 to 20 years

28
(Additional information) foreign currency at the year-end is made at the current
Useful lives of Machinery and equipment have been exchange rate. Exchange gains and losses resulting
changed in conformity with the Corporate Tax Law from foreign currency transactions and translation of
revised in 2008. The impact on the consolidated assets and liabilities denominated in foreign currencies
statement of income is not significant. are included in the consolidated statements of income.
All assets, liabilities, income and expense accounts of
(b) Intangible assets: foreign subsidiaries are translated using the current
The Company adopted the straight-line method for exchange rates at the respective balance sheet dates.
computing amortization. Software for in-house use is Foreign currency translation adjustments resulting from
amortized based on the straight-line method over the such procedures are recorded in the consolidated
expected useful economic life of 5 years. Software for balance sheets as a separate component of net assets.
sale is amortized based on an estimated volume of sales,
with the minimum amortization amount calculated based (6) Consumption taxes -
on a useful life of 3 years. The consumption tax withheld upon sale and consump-
tion tax paid by the Companies on their purchases of
(4) Basis of provision - goods and services is not included in revenue and cost
(a) Allowance for doubtful accounts: or expense items in the accompanying consolidated
An allowance for doubtful accounts is provided in an statements of income.
amount sufficient to cover probable losses on collection.
The allowance for doubtful accounts of the Company is (7) Valuation method for assets and liabilities of subsidiar-
computed based on the past bad debt experience ratio ies -
for normal receivables, plus the estimated irrecoverable Assets and liabilities of subsidiaries are measured at fair
amount of doubtful receivables on an individual account value when consolidated.
basis.
(8) Amortization of goodwill -
Foreign consolidated subsidiaries mainly compute the Goodwill is amortized equally over the effective periods.
allowance for doubtful accounts based on the estimated
irrecoverable amount of doubtful receivables on an (9) Cash and cash equivalents -
individual account basis. Cash and cash equivalents include all highly liquid
investments, generally with original maturities of three
(b) Provisions for bonuses: months or less, those that are readily convertible to
The provisions for bonuses to employees are provided known amounts of cash and, thus, present an insignifi-
based on the estimated amounts expected to be paid to cant risk of changes in value.
the employees.
3. Accounting changes:
(c) Provisions for directors’ and statutory corporate (1)Practical solution on unification of accounting policies
auditors’ bonuses applied to foreign subsidiaries for the consolidated
The provisions for directors’ and statutory corporate financial statements -
auditors’ bonuses are provided based on the estimated “Practical Solution on Unification of Accounting Policies
amounts expected to be paid for directors and statutory Applied to Foreign Subsidiaries for the Consolidated
corporate auditors. Financial Statements” (Accounting Standards Board of
Japan Practical Issues Task Force No. 18 issued on May
(d) Provision for retirement benefits: 17, 2006) has been adopted effective for the fiscal year
The provision for retirement benefits for employees is ended March 31, 2009. As a result, operating profit,
provided based on the actuarially calculated present ordinary income and income before income taxes are
value of projected benefit obligations except for, as decreased by ¥17,576 thousand ($179 thousand)
permitted under the accounting standard for employees’ compared with what would have been reported under the
retirement benefits, the unrecognized actuarial differ- previous accounting policy that consolidated subsidiaries
ences. The unrecognized actuarial differences are overseas had applied generally accepted accounting
amortized on a straight-line basis over 5 years beginning principles in each country to their own financial
in the year after they arise. statements and no adjustments had been made to their
financial statements on consolidation. The impact on
(e) Provision for directors’ and statutory corporate segment information is explained in Note 20.
auditors’ retirement benefits:
The Company provides an accrued lump-sum severance (2)Lease accounting -
indemnity for directors’ and statutory corporate auditors’ Finance lease transactions that do not transfer ownership
at the full amount which would be required to be paid if of the assets had been accounted for using the same
all directors and statutory corporate auditors retired at method as for operating leases. However, “Accounting
the balance sheet date based on the Company’s internal Standard for Lease Transactions” (Accounting Standards
regulations. Board of Japan Statement No. 13, originally issued on
June 17, 1993 and revised on March 30, 2007) and
(5) Foreign currency translation - “Guidance on Accounting Standard for Lease Transac-
The Company’s functional currency is Japanese Yen. tions” (Accounting Standards Board of Japan Guidance
The translation of assets and liabilities denominated in No. 16, originally issued on January 18, 1994 and revised

29
Notes to Consolidated Financial Statements

on March 30, 2007) have been adopted effective from the The following is certain information relating to the
fiscal year beginning on and after April 1, 2008. aggregate acquisition cost and market value of securities
in fiscal year 2009.
As for Finance lease transactions that do not transfer
ownership which commenced before April 1, 2008, the (i) Held-to-maturity debt securities with fair market value
Company has applied the same method as for operating Thousands of Thousands of
yen U.S. dollars
leases continuously. March 31, 2009 March 31, 2009
Securities with fair market value not
The adoption did not have any impact on the consoli- exceeding book carrying amount-other:
Book carrying amount ¥500,000 $5,090
dated statement of income. Fair market value 490,400 4,992

4. Changes to presentation methods: Difference (¥9,600) ($98)


(Consolidated Balance Sheets)
(1) “Merchandise and finished goods”, “Work in process” (ii) Securities for which market price or quotations are not available.
and “Raw materials and supplies” accounts are separately Thousands of Thousands of
yen U.S. dollars
presented from this fiscal year, which was included in March 31, 2009 March 31, 2009
“Inventories” account in the previous years. Each amount of Book carrying Book carrying
amount amount
“Merchandise and finished goods”, “Work in process” and
Other securities:
“Raw materials and supplies” accounts in the previous year Non-marketable equity securities ¥35,277 $359
is ¥2,349,469 thousand ($23,918 thousand), ¥177,043 Other 1,020,000 10,384
thousand ($1,802 thousand) and ¥847,171 thousand ($8,624
thousand), respectively. (iii) Redemption schedule
The redemption schedule of held-to-maturity debt
(2) “Tools, furniture and fixtures” account and its “Accumu- securities as of March 31, 2009
lated depreciation” account is separately presented from this Thousands of yen
Due 2009 Due 2010∼ Due 2014∼ Due after
fiscal year, which was included in “Other” of “Property, plant 2013 2018 2019
and equipment” in the previous fiscal years, as its signifi- Bonds
cance has increased. Each amount of “Tools, furniture and (1) Government bonds,
fixtures” account and its “Accumulated depreciation” account Municipal bonds, etc. ¥– ¥– ¥– ¥–
(2) Corporate bonds – – – –
in the previous year is ¥1,454,331 thousand ($14,805 (3) Others 500,000 – – –
thousand) and 1,079,531 thousand ($10,990 thousand), Other – – – –
respectively.
Total ¥500,000 ¥– ¥– ¥–

5. Investment securities: Thousands of U.S. dollars


Marketable and investment securities: Due 2009 Due 2010∼ Due 2014∼ Due after
2013 2018 2019
The following is certain information relating to the
Bonds
aggregate acquisition cost and market value of securities (1) Government bonds,
in fiscal year 2008. Municipal bonds, etc. $– $– $– $–
(2) Corporate bonds – – – –
(3) Others 5,090 – – –
(i) Held-to-maturity debt securities with fair market value Other – – – –
Thousands of yen
March 31, 2009
Total $5,090 $– $– $–
Securities with fair market value not exceeding
book carrying amount-other:
Book carrying amount ¥500,000
Fair market value 499,250 6. Overdraft facility:
(1) For effective funding to meet working capital require-
Difference (¥750) ments, the Company has established overdraft facilities
with two banks. Unutilized overdraft facilities under
(ii) Securities for which market price or quotations are not available. these contracts at the end of this fiscal year are as
Thousands of yen
March 31, 2009 follows:
Book carrying Thousands of Thousands of
amount yen U.S. dollars
Other securities: March 31, 2009 March 31, 2009
Non-marketable equity securities ¥36,429 Amount of overdraft limit ¥2,000,000 $20,360
Other 5,500,000 Utilized overdraft facilities – –

(iii) Redemption schedule Net amount ¥2,000,000 $20,360


The redemption schedule of held-to-maturity debt securities as of March 31, 2008
Thousands of yen
Due 2008 Due 2009∼ Due 2013∼ Due 2013∼
2012 2017 2018
Bonds
(1) Government bonds,
Municipal bonds, etc. ¥– ¥– ¥– ¥–
(2) Corporate bonds – – – –
(3) Others – 500,000 – –
Other – – –
Total ¥– ¥500,000 ¥– ¥–

30
7. Short-term and long-term debt: Thousands of yen
Thousands of
U.S. dollars
Thousands of Thousands of 2008 2009 2009
yen U.S. dollars Average Due date (1) Projected benefit obligation (¥383,101) (¥425,615) ($4,333)
March 31 March 31 interest of
2008 2009 2009 rate (%) payment
(2) Unrecognized actuarial loss 12,496 5,464 56
(3) Provision for retirement benefits
Short-term debt ¥600,000 ¥600,000 $6,108 1.277 –
for employees (1)+(2) (¥370,605) (¥420,151) ($4,277)
Long-term debt
due within one year – – – – –
Lease obligation
due within one year – – – – – The components of the net periodic pension expense for
Long-term debt – – – – – the years ended March 31, 2008 and 2009 are as follows:
Lease obligation- – – – – –
Thousands of
Other interest Thousands of yen
U.S. dollars
bearing liabilities: 2008 2009 2009
Accounts payable 4,914 2,855 29 9.040 –
(1) Service cost ¥42,623 ¥45,161 $460
Long-term Due 2010
(2) Interest cost 6,584 7,282 74
accounts payable 7,301 2,448 25 9.040 ~ 2011
(3) Recognized actuarial loss 5,298 6,186 63
Total ¥612,215 ¥605,333 $6,162
(4) Contribution – 88,076 896
Notes: a) Average interest rate is a weighted average interest rate to (5) Net periodic pension expense ¥54,505 ¥146,705 $1,493
the ending balance of debts.
b) Five-year schedule of other interest bearing liabilities
excluding the amount due within one year is as follows: Note: The net periodic pension expense of ¥81,175 thousand ($826
thousand) for the year ended March 31, 2008 excluded the contribution
Thousands of yen
expense to the Saitama prefectural industrial park multi-employer pension
Due after Due after Due after Due after plan.
1 year to 2 year 2 year to 3 year 3 year to 4 year 4 year to 5 year
Long-term accounts payable ¥892 ¥1,556 ¥– ¥–
The assumptions used as of March 31, 2008 and 2009
Thousands of U.S. dollars are as follows:
Due after Due after Due after Due after 2008 2009
1 year to 2 year 2 year to 3 year 3 year to 4 year 4 year to 5 year
(1) Discount rate 2.0% 2.0%
Long-term accounts payable $9 $16 $– $–
(2) Method of attributing the projected Straight-line Straight-line
benefits to periods of service basis basis
(3) Amortization of unrecognized actuarial Straight-line Straight-line
8.Provision for retirement benefits: differences over 5 years over 5 years
The Company has an unfunded retirement allowance plan
(the “Plan”) covering substantially all of its employees who Some of consolidated subsidiaries overseas have defined
meet eligibility requirements under the Plan. In addition, the contribution pension plans.
Company is a member of the Saitama prefectural industrial
park multi-employer pension plan, which covers substan-
tially all of its employees and provides for benefits under the
9. Cost of sales:
Devaluation amount due to decrease of net realizable value
governmental welfare pension benefit plan, which would
is reflected in inventory amount for the end of fiscal year
otherwise be provided by the Japanese government.
March 31, 2009. As a result, cost of sales includes loss on
inventory devaluation of ¥40,330 thousand ($411 thousand).
This multi-employer pension plan does not permit us to
reasonably calculate the value of the pension plan assets
based on our contributions. As a result, this multi-employer 10. Selling, general and administrative expenses:
pension plan is excluded from the calculation of projected The major components of “Selling, general and administra-
benefit obligation. tive expenses” are as follows:
Thousands of Thousands of
yen U.S. dollars
Overview of the multi-employer pension plan is as follow, Year ended March 31
Year ended
March 31
under which the required contributions to the plan are 2008 2009 2009
charged to income. Advertising expenses ¥1,617,543 ¥1,378,351 $14,032
Provision for allowance for
(1)The funded status of the pension plan as of March 31, doubtful accounts 9,349 82,626 841
Salaries 2,651,928 2,874,375 29,262
2008 and 2009 Pension expenses 86,812 151,176 1,539
Thousands of Thousands of Provisions for retirement benefits of directors
yen U.S. dollars and statutory corporate auditors 47,835 57,382 584
March 31 March 31 Provisions for bonuses to employees 602,186 269,786 2,746
2008 2009 2009
Research and development expenses – 1,441,953 14,679
The amount of pension assets ¥7,615,148 ¥6,998,395 $71,245 Provisions for bonuses to directors and
The amount of benefit obligations statutory corporate auditors 23,695 – –
under pension funding programs (6,931,374) (7,458,524) (75,929) Commission paid 1,433,588 – –
Net ¥683,774 (¥460,129) ($4,684)

11. Research and development expenditures:


(2) The ratio of the number of company’s employees to total Research and development expenditures are included in
employees in the multi-employer pension plan as of March selling, general and administrative expenses. Such
31, 2008 is 15.2% and 2009 is 16.2% , respectively. expenses amounted to ¥1,111,911 thousand and
¥1,441,953 thousand ($14,679 thousand) for the years
The provision for retirement benefits for employees as of ended March 31, 2008 and 2009, respectively.
March 31, 2008 and 2009 can be analyzed as follows:

31
Notes to Consolidated Financial Statements

12.Gain and loss on sale and retirement of Type of


Total amont
of dividends
Dividends
Record Effective
noncurrent assets: (Approval by) shares (Thousands
per share
date date
(yen)
of yen)
(1) Gain on sales of noncurrent assets -
Thousands of Board meeting on Common March 31, June 1,
Thousands of yen ¥628,044 ¥1,500
U.S. dollars May 29, 2007 stock 2007 2007
Year ended March 31
2008 2009
Year ended March 31
2009

Tools, furniture and fixtures ¥108 ¥155 $2 Total amont
Dividends
Type of of dividends Record Effective
(Approval by) shares (Thousands
per share
date date
Total ¥108 ¥155 $2 of U.S. dollars)
(dollar)

(2) Loss on sales of noncurrent assets - Board meeting on Common March 31, June 1,
$6,269 $15
May 29, 2007 stock 2007 2007
Thousands of
Thousands of yen
U.S. dollars
Year ended March 31 Year ended March 31
2008 2009 2009 Dividends payment approved at the board meeting
Machinery, equipment and held on April 30, 2008 are as follows:
vehicles ¥1,451 ¥446 $5
Tools, furniture and fixtures 66 - - Total amont
Dividends
Type of of dividends Record Effective
(Approval by) shares (Thousands
per share
date date
Total ¥1,517 ¥446 $5 of yen)
(yen)

(3) Loss on retirement of noncurrent assets - Board meeting on Common March 31, June 3,
¥1,050,390 ¥2,500
April30, 2008 stock 2008 2008
Thousands of
Thousands of yen
U.S. dollars 
Year ended March 31 Year ended March 31
Total amont
2008 2009 2009 Dividends
Type of of dividends Record Effective
Buildings and structures ¥1,467 ¥4,954 $51 (Approval by) shares (Thousands
per share
date date
(dollar)
Machinery, equipment and of U.S. dollars)
vehicles 10 - -
Tools, furniture and fixtures 10,282 7,777 79 Board meeting on Common March 31, June 3,
$10,484 $25
Software - 603 6 April 30, 2008 stock 2008 2008

Total ¥11,759 ¥13,334 $136


b) Dividends of which record date is attributable to
the accounting period ended March 31, 2008 and
13.Changes in net assets: 2009, respectively, but to be effective after said
(1) Type and number of shares outstanding and treasury stock - accounting period.
Type of shares outstanding Type of treasury stock
Common stock Total Common stock Total The Company resolved approval at the board meeting
Number of shares as of March held on April 30, 2008 as follows:
31, 2007 (Unit: shares) 418,696 418,696 - -
Total amont
Number of shares increased during Type of of dividends
Dividends
Record Effective
the accounting periodended (Approval by) shares (Thousands
per share
date date
(yen)
March 31, 2008 (Unit: shares) 1,460 1,460 - - of yen)
Number of shares decreased during
the accounting period ended Board meeting on Common March 31, June 3,
¥1,050,390 ¥2,500
March 31, 2008 (Unit: shares) - - - - April 30, 2008 stock 2008 2008

Number of shares as of March 31, 420,156 420,156 - -
Total amont
2008 (Unit: shares) Type of of dividends
Dividends
Record Effective
(Approval by) shares (Thousands
per share
date date
(dollar)
Note: Increase in the number of shares was due to exercise of stock options. of U.S. dollars)

Board meeting on Common March 31, June 3,


April 30, 2008 $10,484 $25
Type of shares outstanding Type of treasury stock stock 2008 2008
Number of shares as of March Common stock Total Common stock Total
31, 2008 (Unit: shares) 420,156 420,156 - - The Company resolved approval at the board meeting held
Number of shares increased during
the accounting periodended on May 8, 2009 as follows:
March 31, 2009 (Unit: shares) 1,540 1,540 20,000 20,000
Total amont
Number of shares decreased during Type of of dividends
Dividends
Record Effective
the accounting period ended (Approval by) shares (Thousands
per share
date date
(yen)
March 31, 2009 (Unit: shares) - - - - of yen)

Number of shares as of March 421,696 421,696 20,000 20,000 Board meeting on Common March 31, June 3,
¥1,205,088 ¥3,000
31, 2009 (Unit: shares) May 8, 2009 stock 2009 2009

Note: a) Increase in the number of shares was due to exercise of stock options. Total amont
Dividends
Type of of dividends Record Effective
b) Increase in the number of treasury stock was due to purchase (Approval by) shares (Thousands
per share
date date
of treasury stock based on the resolution of the board meeting. (dollar)
of U.S. dollars)

(2) Matters related to dividend - Board meeting on Common


$12,268 $31
March 31, June 3,
May 8, 2009 stock 2009 2009
a)Dividend payment
Dividend payment approved at the board
meeting held on May 29, 2007 are as follows:

32
14. Cash and cash equivalents: ownership of the assets have been accounted for as
Cash and cash equivalents as of March 31, 2009, is ordinary sale and purchase transactions. These
consisted of as follows: standards (See Note 3) are applied to new lease
Thousands of yen
Thousands of contracts entered since the fiscal year ended March
U.S. dollars
2008 2009 2009
31, 2009. Such, however, new contracts have not
Cash and deposits ¥8,078,235 ¥9,994,114 $101,742
been entered for the fiscal year ended March 31, 2009.
Short-term investment securities 5,500,000 1,520,000 15,474
Less: Held-to-maturity Finance lease transactions that do not transfer
debt securities due within one year - (500,000) (5,090) ownership of the assets which commenced before
Less: Time deposits with
maturities exceeding three months (1,041) - - April 1, 2008, have been accounted for using the same
method as for operating leases continuously. Such
Cash and cash equivalents ¥13,577,194 ¥11,014,114 $112,126 finance lease transactions of the Company and its
subsidiaries, as a lessee, are shown below:
15. Income taxes:
The significant components of deferred tax assets and (1) Finance leases, which do not transfer ownership
liabilities for the years ended March 31, 2008 and 2009 of the assets to the lessee and are accounted
are as follows: for as operating leases, are as follows:
Thousands of
Thousands of yen
U.S. dollars
2008 2009 2009
(a) Acquisition costs of leased assets under finance leases are as follows:
Thousands of yen
Deferred tax assets:
Acquisition Accumulated Net balance as of
Inventory-inter-company profit ¥488,141 ¥444,472 $4,525 cost depreciation March 31, 2008
Accrued retirement benefits 142,989 162,331 1,653
Machinery, equipment and vehicles ¥2,705 ¥1,284 ¥1,421
Accrued severance
Tools, furniture and fixtures 20,024 17,096 2,928
indemnities for directors
and statutory corporate auditors 121,931 136,470 1,389
¥22,729 ¥18,380 ¥4,349
Accrued bonuses 119,270 114,052 1,161
Accrued expenses 63,206 72,633 739
Software development costs 45,625 39,125 398 Thousands of yen
Enterprise tax 86,872 38,846 395 Acquisition Accumulated Net balance as of
Inventories - 28,682 292 cost depreciation March 31, 2009
Net loss carried forward for tax Machinery, equipment and vehicles ¥2,705 ¥1,919 ¥786
purposes - 27,597 281 Tools, furniture and fixtures 16,419 15,319 1,100
Account receivables - 20,744 211
Lump-sum depreciation assets 19,848 17,118 174 ¥19,124 ¥17,238 ¥1,886
Trademark rights - 7,556 77
Others 21,360 32,329 330
Total deferred tax assets 1,109,242 1,141,955 11,625 Thousands of U.S. dollars
Acquisition Accumulated Net balance as of
cost depreciation March 31, 2009
Deferred tax liabilities:
Undistributed earnings of Machinery, equipment and vehicles $28 $20 $8
overseas subsidiaries (415,522) (442,402) (4,503) Tools, furniture and fixtures 167 156 11

Fixed assets of overseas subsidiaries - (31,269) (318) $195 $176 $19


Others (56,019) (44,383) (452)
Total deferred tax liabilities (471,541) (518,054) (5,273)
(b) Future lease payments under finance leases are as follows:
Net deferred tax assets ¥637,701 ¥623,901 $6,352 Thousands of
Thousands of yen
U.S. dollars
2008 2009 2009

The reconciliation between the statutory tax rate and Due within one year ¥4,261 ¥2,440 $25
Due after more than one year 4,576 2,136 22
the effective income tax rate in the consolidated
statement of income for the year ended March 31, ¥8,837 ¥4,576 $47
2008 is as follows:
March 31,
2008
(c) Lease payments and amounts representing depreciation and interest
Statutory effective tax rate 39.7%
are as follows:
Thousands of
Thousands of yen
U.S. dollars
Non deductible expenses for tax purposes 0.7 2008 2009 2009
Equalization tax 0.2 Lease payments ¥17,683 ¥4,261 $43
Tax credit of corporation tax (1.9) Amount representing depreciation 12,232 2,463 25
Others (1.6) Amount representing interest 533 300 3
Effective income tax rate 37.1%

(2) Minimum lease payments under non-cancelable


The difference between the statutory income tax rate operating leases are as follows:
and the effective income tax rate for the year ended Thousands of
Thousands of yen
March 31, 2009 was less than 5% of the statutory U.S. dollars
2008 2009 2009
income tax rate, and accordingly, the reconciliation Due within one year ¥56,762 ¥109,381 $1,113
between these two rates has been omitted. Due after one year 39,474 115,089 1,172

Total minimum lease payments ¥96,236 ¥224,470 $2,285


16. Leases:
Finance lease transactions that do not transfer There is no impairment losses allocated to leased assets.

33
Notes to Consolidated Financial Statements

(3) Calculation method of depreciation equivalents 18. Earnings per share information:
Depreciation equivalents are calculated using the The computation of net income per share is based on
declining-balance method for tangible fixed assets the weighted-average number of common shares
over the lease terms with residual value by 10%, outstanding during each fiscal year. Treasury stocks
before multiplying by 10 and being divided by 9 and on held during these fiscal years are excluded.
the straight-line method for the intangible assets over Yen U.S. dollars
March 31 March 31
the lease terms without residual value.
2008 2009 2009
Net assets per share ¥44,178.22 ¥44,303.37 $451.01
(4) Allocation of interest expense equivalents Net income per share 8,348.74 6,213.93 63.26
Differences between total lease expenses and pur- Diluted net income per share 8,304.38 6,197.78 63.09
chase price equivalents of the leased properties
comprise interest expense equivalents and insurance, Note: The basis for calculating basic and diluted
maintenance and certain other operating costs. earning per share is as follows
Interest expense equivalents are allocated using the
Thousands of
interest method over the lease terms. Thousands of yen U.S. dollars
March 31 March 31
2008 2009 2009
17. Derivatives: Basic net income per share
All derivative transactions are entered into in order to
hedge foreign currency exposures within the Net income ¥3,501,360 ¥2,579,025 $26,255
Net income not available to common
Company’s business. Accordingly, the market risk in shareholders - - -
these derivatives is basically offset by opposite Net income available to common shareholders 3,501,360 2,579,025 26,255
movements in the value of hedged assets or liabilities. Weighted-average number of
shares outstanding (shares) 419,388 415,039 -
The Company does not hold derivatives for trading or
speculative purposes. Because the counterparties to Diluted net income per share
these derivatives are limited to major international
finance institutions, the Company does not anticipate Amount of net income adjustment - - -
Increase in the number of common
any losses arising from credit risk. shares outstanding during each fiscal
year that would result in exercising
Derivative transactions entered into by the Company options to issue new shares(shares) 2,240 1,082 -
have been executed in accordance with internal
policies, which regulate the authorization and credit
19. Stock options:
limit amount.
The following are the stock options granted to directors and
employees, which would result in an increase in the number
The amount of the derivative contracts does not
of common shares with the following exercise prices.
necessarily indicate the significance of the risk.
Date of
Certain information on outstanding derivative contracts ordinary Number of
shareholders’ options granted
is shown below. meeting Person granted (shares)

Thousands of yen
November 8, 2002 Employees 113 19,160
March 31, 2008 Subsidiaries’ executive officers 6
Contract Unrealized Subsidiaries’ employees 33
Fair value
amount gain/(loss) June 26, 2003 Executive officers 4 7,440
Foreign exchange forward contracts: Employees 66
To sell U.S. dollars 1,439,624 1,432,717 ¥6,907 Subsidiaries’ employees 13
To sell Euros 680,435 680,217 218 June 24, 2004 Executive officers 2 1,200
To sell British Pound - - - Employees 4
Subsidiaries’ employees 9
Total ¥2,120,059 ¥2,112,934 ¥7,125 June 23, 2005 Executive officers 1 800
Employees 6
Subsidiaries’ employees 9
Thousands of yen
28,600
March 31, 2009
Contract Unrealized
Fair value
amount gain/(loss)
Date of Average price
Foreign exchange forward contracts: ordinary Exercise price per share
To sell U.S. dollars ¥972,403 ¥1,011,634 (¥39,231) shareholders’ per share at exercise
538,652 545,328 (6,676) meeting (exact yen) (exact yen) Exercise periods
To sell Euros
To sell British Pound 89,292 85,173 4,119 November 8, 2002 ¥17,659 ¥203,550 From November 9, 2004 to
October 31, 2011
Total ¥1,600,347 ¥1,642,135 (¥41,788) June 26, 2003 158,951 256,391 From June 27, 2005 to
June 26, 2008
June 24, 2004 306,139 - From June 25, 2006 to
Thousands of U.S. dollars
March 31, 2009 June 24, 2009
Contract Unrealized
June 23, 2005 242,865 - From June 24, 2007 to
Fair value
amount gain/(loss) June 23, 2010
Foreign exchange forward contracts:
To sell U.S. dollars $9,899 $10,299 ($400)
To sell Euros 5,484 5,551 (67) The changes in stock options for the year ended
To sell British Pound 909 867 42 March 31, 2008 are as follows

Total $16,292 $16,717 ($425)

34
(Unit:shares) Thousands of U.S. dollars
Year ended March 31, 2009
Date of ordinary November 8, June 26, June 24, June 23,
ESD ECS Elimination/
shareholders’ meeting 2002 2003 2004 2005
business business Total Corporate Consolidated
Outstanding I. Net sales:
at March 31, 2007 1,500 3,380 844 800 (1) Outside customers $336,541 $7,642 $344,183 $- $344,183
Granted - - - - (2) Inter-segment - - - (-) -
Exercised 300 1,160 - - Total 336,541 7,642 344,183 (-) 344,183
Expired - 80 - -
Outstanding Operating expenses 273,309 7,143 280,452 19,840 300,292
at March 31, 2008 1,200 2,140 844 800
Exercise periods From November 9, From June 27, From June 25, From June 24, Operating income $63,232 $499 $63,731 ($19,840) $43,891
2004 to October 2005 to June 2006 to June 2007 to June
31, 2011 26, 2008 24, 2009 23, 2010 II. Assets, depreciation
and capital expenditure:
Assets $147,418 $4,846 $152,264 $108,665 $260,929
The changes in stock options for the year ended Depreciation 5,226 460 5,686 1,07 6,764
Capital expenditure 9,571 251 9,822 2,134 11,956
March 31, 2009 are as follows:
(Unit:shares)
Date of ordinary November 8, June 26, June 24, June 23, Notes:
shareholders’ meeting 2002 2003 2004 2005
a) Segment information by business activity is determined
Outstanding
at March 31, 2008 1,200 2,140 844 800
based upon consideration of the product line and
Granted - - - - management control of the business.
Exercised 140 1,400 - -
Expired - 740 40 -
b) The main products of each business segment include the
Outstanding
at March 31, 2009 1,060 - 804 800 following:
Exercise periods From November 9, From June 27, From June 25, From June 24, i) ESD business: Professional graphics tablet,
2004 to October 2005 to June 2006 to June 2007 to June Consumer graphics tablet, LCD tablet, Pen sensor
31, 2011 26, 2008 24, 2009 23, 2010
component, etc.
ii) ECS business: ECAD/dio, ENOVIA SmarTeam, etc.
20. Segment information: c) Elimination or Corporate expenses of ¥2,561,756
(1) Segments by industry - thousand and ¥1,948,967 thousand ($19,840 thousand)
Thousands of yen
Year ended March 31, 2008
during the years ended March 31, 2008 and 2009,
ESD ECS Elimination/ respectively, mainly include the administrative expenses of
business business Total Corporate Consolidated
the Company.
I. Net sales:
(1) Outside customers ¥35,842,651 ¥896,545 ¥36,739,196 ¥ - ¥36,739,196
(2) Inter-segment - - - (-) - d) Elimination or Corporate assets of ¥12,454,873 thousand
Total 35,842,651 896,545 36,739,196 (-) 36,739,196 and ¥10,674,134 thousand ($108,665 thousand) at March
Operating expenses 27,881,600 756,969 28,638,569 2,561,756 31,200,325 31, 2008 and 2009, respectively, mainly include cash,
investment securities and assets belonging to the general
Operating income ¥7,961,051 ¥139,576 ¥8,100,627 (¥2,561,756) ¥5,538,871 and administrative departments of the Company.
II. Assets, depreciation
and capital expenditure: e) Effective from the fiscal year ended March 31, 2009, the
Assets ¥16,227,230 ¥539,227 ¥16,766,457 ¥12,454,873 ¥29,221,330 Company changed accounting policies as stated in Note 3
Depreciation 403,617 38,082 441,699 76,801 518,500
Capital expenditure 341,982 25,512 367,494 71,378 438,872 (3) Inventory valuation. As a result, operating profit
decreased by ¥40,130 thousand ($409) for ESD business
Thousands of yen and ¥200 thousand ($2) for ECS business compared with
Year ended March 31, 2009 what would have been reported under the previous
ESD ECS Elimination/
business business Total Corporate Consolidated accounting policy.
I. Net sales:
(1) Outside customers ¥33,058,396 ¥750,742 ¥33,809,138 ¥ - ¥33,809,138 f) Effective from the fiscal year ended March 31, 2009, the
(2) Inter-segment - - - (-) -
Total 33,058,396 750,742 33,809,138 (-) 33,809,138 Company changed accounting policies as stated in Note 3
(1) Practical solution on unification of accounting policies
Operating expenses 26,847,100 701,693 27,548,793 1,948,967 29,497,760 applied to foreign subsidiaries for the consolidated
Operating income ¥6,211,296 ¥49,049 ¥6,260,345 (¥1,948,967) ¥4,311,378 financial statements. As a result, operating profit
decreased by ¥17,576 thousand ($179) for ESD business
II. Assets, depreciation compared with what would have been reported under the
and capital expenditure: previous accounting policy.
Assets ¥14,480,863 ¥476,060 ¥14,956,923 ¥10,674,134 ¥25,631,057
Depreciation 513,311 45,177 558,488 105,951 664,439
Capital expenditure 940,194 24,643 964,837 209,659 1,174,496

35
Notes to Consolidated Financial Statements

(2) Segments by geography - e) Effective from the fiscal year ended March 31, 2009, the
Thousands of yen Company changed accounting policies as stated in Note 3
Year ended March 31, 2008
Asia/ Elimination/
(3) Inventory valuation. As a result, operating profit
Japan U.S.A. Europe Oceania Total Corporate Consolidated decreased by ¥40,330 thousand ($411) for Japan
I. Net sales: compared with what would have been reported under the
(1) Outside customers ¥13,569,637 ¥11,029,962 ¥8,448,701 ¥3,690,896 ¥36,739,196 ¥- ¥36,739,196
(2) Inter-segment 16,936,515 212,874 - 24,158 17,173,547 (17,173,547) - previous accounting policy.
Total 30,506,152 11,242,836 8,448,701 3,715,054 53,912,743 (17,173,547) 36,739,196
f) Effective from the fiscal year ended March 31, 2009, the
Operating expenses 23,677,708 10,531,834 7,916,478 3,321,545 45,447,565 (14,247,240) 31,200,325
Company changed accounting policies as stated in Note 3
Operating income ¥6,828,444 ¥711,002 ¥532,223 ¥393,509 ¥8,465,178 (¥2,926,307) ¥5,538,871 (1) Practical solution on unification of accounting policies
applied to foreign subsidiaries for the consolidated
II. Assets ¥10,711,737 ¥5,364,589 ¥3,744,090 ¥1,521,749 ¥21,342,165 ¥7,879,165 ¥29,221,330
financial statements. As a result, operating profit
Thousands of yen
decreased by ¥17,576 thousand ($179) for U.S.A.
Year ended March 31, 2009 compared with what would have been reported under the
Asia/ Elimination/
Japan U.S.A. Europe Oceania Total Corporate Consolidated previous accounting policy.
I. Net sales:
(1) Outside customers ¥12,772,956 ¥9,816,329 ¥7,995,377 ¥3,224,476 ¥33,809,138 ¥- ¥33,809,138
(2) Inter-segment 14,721,928 233,032 - 52,195 15,007,155 (15,007,155) - (3) Overseas sales
Total 27,494,884 10,049,361 7,995,377 3,276,671 48,816,293 (15,007,155) 33,809,138
Thousands of yen
Year ended March 31, 2008
Operating expenses 22,141,865 9,693,111 7,642,570 3,232,594 42,710,140 (13,212,380) 29,497,760 North Asia/
America Europe Oceania Others Total
Operating income ¥5,353,019 ¥356,250 ¥352,807 ¥44,077 ¥6,106,153 (¥1,794,775) ¥4,311,378 I.Overseas sales ¥10,996,721 ¥8,277,094 ¥9,573,488 ¥414,055 ¥29,261,358
II.Consolidated sales - - - - 36,739,196
II. Assets ¥9,326,919 ¥4,997,714 ¥3,444,995 ¥1,370,768 ¥19,140,396 ¥6,490,661 ¥25,631,057
III.Percentage of overseas
sales to
Thousands of U.S. dollars consolidated sales 29.9% 22.5% 26.1% 1.1% 79.6%
Year ended March 31, 2009
Asia/ Elimination/
Japan U.S.A. Europe Oceania Total Corporate Consolidated
Thousands of yen
I. Net sales: Year ended March 31, 2009
(1) Outside customers $130,031 $99,932 $81,394 $32,826 $344,183 $- $344,183 North Asia/
(2) Inter-segment 149,872 2,372 - 532 152,776 (152,776) - America Europe Oceania Others Total
Total 279,903 102,304 81,394 33,358 496,959 (152,776) 344,183 I.Overseas sales ¥9,857,704 ¥7,916,818 ¥8,243,340 ¥303,777 ¥26,321,639
II.Consolidated sales - - - - 33,809,138
Operating expenses 225,408 98,677 77,803 32,909 434,797 (134,505) 300,292
III.Percentage of overseas
Operating income $54,495 $3,627 $3,591 $449 $62,162 ($18,271) $43,891 sales to
consolidated sales 29.2% 23.4% 24.4% 0.9% 77.9%
II. Assets $94,950 $50,877 $35,071 $13,955 $194,853 $66,076 $260,929
Thousands of U.S. dollars
Year ended March 31, 2009
Notes: North Asia/
America Europe Oceania Others Total
a) Segment information by geographic area is determined by
I.Overseas sales $100,353 $80,595 $83,919 $3,092 $267,959
taking into account the geographic area where the II.Consolidated sales - - - - 344,183
Company or its subsidiaries are located. III.Percentage of overseas
sales to
consolidated sales 29.2% 23.4% 24.4% 0.9% 77.9%
b) The countries in each geographic segment excluding
Japan and U.S.A.:
i) Europe: Germany, United Kingdom Notes:
ii) Asia/Oceania: China, South Korea, Australia, a) Countries or regions are determined by geographical
Hong Kong, Singapore and Taiwan proximity.

c) Elimination or Corporate expenses of ¥2,561,756 b) Principal countries or regions belonging to each segment:
thousand and ¥1,948,967 thousand ($19,840 thousand) i) North America: U.S.A. and Canada
during the years ended March 31, 2008 and 2009, ii) Europe: United Kingdom, Germany, France,
respectively, mainly include the administrative expenses of Netherlands, etc.
the Company. iii) Asia/ Oceania: South Korea, Taiwan, Australia,
China, etc.
d) Elimination or Corporate assets of ¥12,454,873 thousand iv) Others: Middle East, South America, Africa, etc.
and ¥10,674,134 thousand ($108,665 thousand) at March
31, 2008 and 2009, respectively, mainly include cash, c) Overseas sales comprise the sales of the Company and its
investment securities and assets belonging to the general subsidiaries outside Japan.
and administrative departments of the Company.

36
21. Related party transactions: (4) Goodwill recognized -
There were no applicable transactions under this a) Amount of goodwill
category for the year ended March 31, 2008 and year ¥218,652 thousand ($1,797 thousand)
ended March 31, 2009, respectively. b) Goodwill is recognized for the amount which the
acquisition cost exceeds a fair value of the
(Additional information) equity of the acquired company.
“Accounting Standard for Related Party Transactions” c) Amortization method and period
(Accounting Standards Board of Japan Statement No. Goodwill is not amortized because Wacom
11, issued on October 17, 2006) and “Implementation Technology Corporation applies U.S. GAAP.
Guidance on Accounting Standard for Related Party
Transactions” (Accounting Standards Board of Japan (5) Fair value of the assets and liabilities of the
Guidance No. 13, issued on October 17, 2006) has acquired company at the acquisition date are
been adopted effective for the fiscal year ended March summarized below -
31, 2009. Thousands
Thousands Thousands Thousands of
Assets of U.S. Liabilities
of Yen of Yen U.S. dollars
dollars
As a result, in addition to directors who are included in
Current assets ¥11,499 $94 Current ¥− $−
disclosure scope for related party transactions in past liabilities
years, directors of significant subsidiaries of the Fixed assets 264,821 2,176 Non-current 74,474 612
Company, Joseph E. Deal (Wacom Technology Liabilities
Corporation) and Han Stoffels (Wacom Europe GmbH) Total assets ¥276,320 $2,270 Total liabilities ¥74,474 $612
have been included in a disclosure scope for related
party transactions for the year ended March 31, 2009. (6) Major intangible assets which are not classified
as goodwill and their weighted average period
22.Business combination: of amortization are summarized below -
(1)Summary of business combination - Major Weighted
Thousands of Thousands of
The following is certain information relating to the intangible
Yen U.S. dollars
average period
assets of amortization
aggregate acquisition cost and market value of
securities in fiscal year 2008. Patents ¥36,507 $300 7 years

Name of acquired company Touchscreen Konnection Oasis, Inc. Other


Business acquired Designing, manufacturing and sales intellectual
properties 219,042 1800 7 years
of resistive-type touch sensor and
capacitive-type touch sensor
Purpose of the acquisition Expansion of business by combining
technology of the acquired (7) Estimated impact on the consolidated
company’s electrostatic combination income statement -
touch sensor. Estimated unaudited impact on the consolidated income
Acquisition date May 31, 2007
statement assuming this business combination would
Legal structure of the acquisition After a stock purchase of
Touchscreen Konnection Oasis, Inc. by have been completed at the beginning of the fiscal year
the Company, the Company ended March 31, 2008 is not significant.
transferred the entire stock to its 100%
subsidiary, Wacom Technology Note:
Corporation through an investment in
kind, and then Wacom Technology The above-mentioned estimated impact has not been
Corporation merged with Touchscreen audited by the Company’s independent auditors.
Konnection Oasis, Inc. There were no business combinations in fiscal year
Name of the company Wacom Technology Corporation
after acquisition
2009.
Acquired voting rights 100.0%
23.Subsequent events:
There were no applicable items under this category.
(2) Period, for which the operating results of the
acquired company are included in the
accompanying consolidated financial statements -

From June 1, 2007 to March 31, 2008

(3) The acquisition cost -


a) Acquisition cost
¥420,497 thousand ($3,455 thousand)
b) Breakdown of the acquisition cost
Stock acquisition cost
¥408,878 thousand ($3,360 thousand)
Cost associated with stock acquisition
(Such as due diligence cost)
¥11,619 thousand ($95thousand)

Note: All acquisition cost above has been disbursed in cash.

37
Report of Independent Auditors

38
Corporate Data
Established July 12, 1983 Head Office / 2-510-1 Toyonodai Otonemachi,
Factory Kita Saitama-Gun, Saitama 349-1148,
Capital ¥4,195 million Japan
(As of March 31, 2009) TEL: +81-480-78-1211 (Main)
FAX: +81-480-78-1220
Employees Consolidated: 637
Non-consolidated: 388 Branch / Tokyo Branch
(As of March 31, 2009) Offices Harmony Tower 21th Floor, 1-32-2
Hon-cho, Nakano-ku, Tokyo
Business 1. Electronic Systems and Devices 164-0012, Japan
Segments (ESD) Business
Development, manufacture, and Nagoya Office
sale of computer input devices Origin Nishiki Bldg. 8th Floor, 1-6-17
• Professional pen tablets Nishiki Naka-ku, Nagoya-shi, Aichi
• Consumer pen tablets 460-0003, Japan
• Interactive pen displays
• Components Osaka Office
2. Engineering Collaborative Solutions Shogyo 2nd Bldg. 6th Floor, 5-4-9
(ECS) Business Toyosaki Kita-ku, Osaka-shi, Osaka
Development, manufacture, sale, 531-0072, Japan
support, and maintenance of
industrial systems Fukuoka Office
• Electronic design CAD software Hakata Ekimae Daini Bldg.
5th Floor, 2-6-23 Hakataeki Higashi,
Banks Mizuho Bank, Ltd. Hakata-ku Fukuoka-shi, Fukuoka
The Bank of Tokyo-Mitsubishi UFJ, 812-0013, Japan
Ltd.
Saitama Resona Bank, Ltd. International Wacom Technology Corporation (U.S.A.)
Affiliates 1311 SE Cardinal Court,
Vancouver, WA 98683, U.S.A.

Wacom Europe GmbH (Germany)


Europark Fichtenhain A9 D-47807,
Krefeld, Germany

Wacom China Corporation (China)


Unit 2807, 28th Floor, Capital Tower, No.
6 Jia, Jianguomenwai Avenue, Beijing,
China

Wacom Korea Co., Ltd. (Korea)


25th Floor DMC iaan Sangam 2nd
Complex, 1653, Sangam-dong,
Mapo-gu, Seoul, Korea, 121-270

Wacom Australia Pty. Ltd.


(Australia)
Unit 8, 2-8 South Street,
Rydalmere NSW 2116, Australia

Wacom Singapore Pte Ltd.


(Singapore)
3 Bishan Place, CPF Bishan Building
#06-08 Singapore 579838

Wacom Hong Kong Ltd. (Hong Kong)


Room 2108, 21F, C. C. Wu Building
302-308 Hennessy Road Wanchai, Hong Kong

Wacom Taiwan Information Co., Ltd.


(Taiwan)
Suite 605, 6th floor, No. 205 Tun Hwa North
Road, Taipei, Taiwan 105 R.O.C.

(As of July 31, 2009)


39
Investor Information

Stock Exchange Listing


Tokyo Stock Exchange First Section (Trade code 6727)

Share Data (As of March 31, 2009)


Total number of shares to be issued 1,380,000
Total number of issued shares 421,696
Total number of shareholders 26,110

Major Shareholders (As of March 31, 2009)


Number of Percentage of
Name of shareholder shares owned voting rights (%)
Yoji Eto 31,320 7.80
Japan Trustee Services Bank, Ltd. (Trust Account 4G) 16,606 4.13
Japan Trustee Services Bank, Ltd. (Trust Account) 16,535 4.12
The Master Trust Bank of Japan, Ltd. (Trust Account) 16,401 4.08
State Street Bank and Trust Company 14,986 3.73
Wilnau Co. 12,100 3.01
Trust and Custody Services Bank, Ltd. (Trust Account) 8,938 2.23
Masahiko Yamada 7,420 1.85
JPMCB Omnibus U.S. Pension Treaty Jasdec 380052 6,043 1.50
MASA-JAPANESE EQUITY 5,655 1.41
*Wacom has 20,000 shares of treasury stock at the end of 2009 F.Y., which isn't included in the above list.
*Percentage of voting rights are calculated after deduction of treasury stock.

Shareholder Distribution (As of March 31, 2009)


Treasury stock
4.74%
20,000 shares
Foreign enterprises, etc. <1 shareholder>
Financial institutions
17.71%
74,671 shares, 16.98%
<128 shareholders> 71,609 shares,
<30 shareholders>

Securities companies

Other enterprises
1.03%
4,343 shares,
5.20% 421,696 <20 shareholders>
21,926 shares, shares
<147 shareholders> 26,110
shareholders

Individuals and other shareholders


54.34%
229,147 shares,
<25,784 shareholders>

40
© 2009 Wacom Co., Ltd. Wacom is a trademark of the Wacom Company, Ltd.
All rights reserved. All other company names and product names are trademarks or registered trademarks of their respective owners.

Das könnte Ihnen auch gefallen