Wacom Introduction & Business Updates

Introduction & Business UpdatesWacom Co., Ltd.

TSE code 6727

June, 2016

All Rights Reserved. Copyright © 2016 Wacom Co., Ltd. 2

Contents Index

3-4 Our Vision and Our Mission

5-7 Company Outline, Who is Wacom, and History

8-11 Historical Financial Results and Dividends

12-15 Wacom’s Strength, Technologies, and IP Portfolio

16 Main Business Lines

17-22 Creative Business

23-24 Consumer Business

25-27 Business Solution

28-31 Technology Solution, CAD

32-34 Sales by Segment and EMS Partners

35-38 Product Portfolio and Technology Strategies

39-41 Our Future Strategy and Brandings

42 Disclaimer

（Slide Page）


our vision

4 • Confidential All Rights Reserved. Copyright © 2014 Wacom Co., Ltd..

Title Name Date

Our Mission


Wacom Co., Ltd.

All Rights Reserved. Copyright © 2016 Wacom Co., Ltd.

Head Office2-510-1, Toyonodai, Kazo-shi,

Saitama, Japan

Date of Founding July 12, 1983

Paid-in Capital 4.2 bn. JPY (as of March 31, 2016)

President &CEO Masahiko Yamada

Revenue 77.6 bn. JPY (FY 3/2016)

Employees 1,232 (incl. temporary staff) (as of March 31, 2016)

Stock Market Tokyo Stock Exchange 1st Section (6727)

Business Line ・ Brand products (creative pen tablet, etc.)

・ Technology solution (pen & touch sensor system, etc.)

・ Others (CAD software)


Who is Wacom ?

• Wacom is the global leader in Pen tablet market.

• Wacom is the key supplier of pen and multi-touch sensor components

for smartphones, tablets, e-book readers, etc.


1980年代 1983 Founded in Saitama, Japan1984 First cordless pen tablet introduced1988 Wacom Europe (Germany) established

1990年代 1990 Walt Disney adopted pen for “Beauty & the Beast”

1991 Wacom Technology (U.S.) established

2000年代 Subsidiaries established in Asia PacificChina (2000), Korea (2004), Australia (2005)Singapore (2006), Taiwan (2008)

2003 Listed on JASDAQ, 2005 Listed on TSE Sec. 1

2000 2010 Wacom India established2011 Received TSE “Disclosure Award”2011 Smartphone adoption of pen technology2012 Received JIRA “Best IR Award for Small Cap.”2013 “Asia’s 200 Best Under 1 billon USD” by Forbes2013 Selected as one of “JPX-Nikkei Index 400” shares

1990’s

2010’s

2000’s

History1980’s


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

FY 03/12 FY 03/13 FY 03/14 FY 03/15 FY 03/16 FY 03/17

Others

Technologysolution40,700

61,068

78,61574,557

82,000

Consolidated Sales(Million JPY)

Forecast

as of May 11, ‘16

77,568


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY 03/12 FY 03/13 FY 03/14 FY 03/15 FY 03/16 FY 03/17

4,067

7,915

8,663

6,143

3,664

4,2003,892

7,559

8,282

6,065

3,777 4,140

2,181

4,7705,249

3,473

2,310

3,000

Operating Profit Recurring Profit Net Profit

Consolidated Profits(Million JPY)

Forecast

as of May 11, ‘16


Key Financial Indicators

10%

13% 11%

8%

5%5%

12%

20%

17%

10%

7%

10%

7%

11%10%

7%

4%5%

0%

5%

10%

15%

20%

FY 03/12 FY 03/13 FY 03/14 FY 03/15 FY 03/16 FY 03/17

OPM ROE ROA

Estimated

as of May 11, ‘16


Dividends per ShareDividend payout policy• Stable payouts to shareholders while maintaining stable financial basis

necessary for future business development• Payout ratio higher than 40%

0.00

5.00

10.00

15.00

20.00

FY 03/13 FY 03/14 FY 03/15 FY 03/16 FY 03/17

37.7%55.9%

86.3%128.6%

98.7%

11.25

17.50 18.00 18.00Shares split

Jun. 2013 Split 400-for 1** Including adoption of 100

share trading-unit

Repurchase of own shares

Sep.- Dec. 20132.0 mil. shares (1.44 bn JPY)

May - Jun. 20152.3 mil. shares (1.22 bn JPY)

May - Sep. 20165.0 mil. shares (2.00 bn JPY) (Plan)

Estimated

as of May 11, ‘16

18.00


Wacom’s Strengths Global Pen tablet market share

Wacom’s estimate in 201５

Americas Europe Asia Oceania Japanincluding sales of

Technology Solution (TS)

FY 3/14 FY 3/15 FY 3/16 FY3/14 FY3/15 FY3/16FY 3/14 FY 3/15 FY 3/16 FY3/14 FY3/15 FY3/16

• Global presence and market share leadership

• Global partnerships with major industry players

Operating 10 companies and 30 offices or more globally

Bar graphs show historical sales by regionUnit : Millions of JPY Local Currency □USD Unit : K □EURO Unit : K


Controller IC

Wacom’s Key Technology

Cordless, battery free pen

2,048 levels of pen pressure sensitivity

High dynamic performance

High durability

High-speed high-precision

EMR position sensor

Side Switch

Eraser Switch

Sensor Board


Wacom’s Key Technology

Active ES Technology

Development of Wacom’s original ES (Electrostatics) Pen Technology

Shared touch sensor for both pen and touch

One chip controller for pen and touch

Eliminated the need for sensor board of pen,

provided a lightweight solution

Simply structure for system products

Incorporated battery or charger system

in Active ES Pen


IP Portfolio and Strategy• Global IP applications and proactive IP management

• Global team of IP professionals for monitoring and defending IP portfolio

Patents Designs Trademarks

Registered Applied Registered Applied Registered Applied

Japan 142 87 86 20 87 14

Overseas 542 527 414 38 599 93

Sub total 684 614 500 58 686 107

Total 1,298 558 793

*Overseas patents are applied and registered in the United States, Europe, China, Taiwan and other key countries.

* Wacom counts one trademark for one product category as one.

(Accordingly, in case of one trademark owned by Wacom for two product categories, the number of trademarks is two.)

(As of March 31, 2016)


Main Business Lines

Technology Solution Business UI technology solutions for mobile systems EMR, AES Components & modules (feelTM)

Other Business Engineering solution・ECAD dio

Consumer business Makes daily lives more creative and enjoyable

Digital Stationery: Bamboo Spark, Bamboo Stylus, etc.

Business solution Serves society by providing innovative solutions

STU (Signature Tablet), DT (Display Tablet) series, etc.

Creative business

Serves the passion of professional and consumer creativity

Intuos, Intuos Pro, Cintiq Companion, Cintiq

Bra

nd

Bu

sin

es

s

Platform &application

Provides

technology,

apps and

platforms

WILL,

Wacom

Cloud,

Bamboo

Paper,

Inkspace,

Sign pro

PDF, etc

All Rights Reserved. Copyright © 2016 Wacom Co., Ltd. 1717All Rights Reserved. Copyright © 2015 Wacom Co., Ltd.

クリエイティブペンタブレット


Creative Pen Tablet

17




Creative Pen Tablet

18

Intuos Comic Intuos Draw Intuos Art Intuos Photo




Creative Mobile

19




Creative Display

20

Wacom supports professional digital

workflows for 3D design and modeling.




Creative Business End Users

• Graphics design and entertainment industries worldwide.

22

Hobbyists


Consumer (Digital Stationeries)

Bamboo Spark

Bamboo Paper

Wacom InkLayer Language


Consumer (Digital Stationeries)


Business Solution

Software for

handwritten signatures

Wacom sign pro PDF

Signature Display DT Series

Signature Tablets STU Series


Business Solution

Medical Information Systems Educational Solutions

Hospitals Queensland Univ., Australia


Business Solution

Digital Signature Systems

CECA, Spain

lalaport, Mitsui Fudosan Retail Management, Japan


Technology Solution

Wacom Feel IT Technologies

Technologies that makes you feel different.


Technology Solution

• High speed, high resolution multi-touch sensor

• Cordless, battery free, pressure sensitive pen

• High optical performance touch panel

• Low power ASIC controller

Integrated user interface solutions

with pen and multi-touch technology


Technology Solution

Wacom Feel IT Technologies

Tablets and note PC models on Windows OS Smartphones and Tablets on Android OS

Customers Projects

General Mobileetab5


ECAD dio (CAD Software)

The domestic market leader of CAD Software for electrical and

machinery engineering


Sales by Business Lines

77.6bn. JPY

(Pen Tablet31.1%)

(Display17.0%)

(Moobile5.7%)

Others 0.9%

Consumer 2.8%

(For smartphone21.1%)

Business Solution 6.4%

Technology

Solution 36.1%

Creative

53.8%

(For Tablet12.3%)

(For Note PC, etc. 2.7%)

FY 03/2016 (results)


Sales by Region

Europe

19.1%

Americas

20.2%

Japan

10.2%Technology

Solution

36.1%

AsiaOceania14.4%

77.6bn. JPY

FY 03/2016 (results)

(Note) There are no regional segments in Technology Solution Business.


EMS Partners

Cintiq 27HDCintiq 22HD

Component

Pen Sensor

Component

Pen Sensor

Component

Touch Sensor

Cintiq 13HDCintq Companion

Vietnam

22” Display pen tablet11” LCD pen tablet

Bamboo Stylus

Signature tablet

Intuos proIntuos series

Bamboo Stylus

Overseas EMS production approx. 98%

Domestic EMS production approx. 1%

Domestic in-house production under 1%

Pen tablet product EMS partners

Consumer product EMS partners

Display, mobile product EMS partner

Technology Sol. EMS partners

Business Sol. product EMS partners


Bra

nd

Pro

du

ct

Tech

no

log

y S

ol.

Signature tablet

Wacom InkLayer Language

ConsumerPro-Business

Desktop

Product PortfolioMobile


Wacom Ink Layer LanguageA cross platform universal ink system

made possible by WILLTM

iOS Android Windows Windows/MacOS


Seamlessly exchange WILL™ data

through cloud platform and services

Build a solution enabling ink


Technology strategies

Multi-technology SolutionEMR + AES（Active ES） + WILL

Open up the era of

“digital stationeries”

Extend pen technology base and pen application areas

Promote new digital ink standard and pen apps development

Open Partnership Policy


From technology to people

From pen to user interface solutions

From professionals to consumers

Anywhere in the world, for everybody in the world

Our Future Strategy


Simple,

Natural,

Intuitive.


our brand


Disclaimer

Forward-looking statements regarding future events and performance contained in

this presentation are based on currently available information and involve risks and

uncertainties, including macroeconomic conditions, trends of the industry in which

the company is engaged, and progress in new technologies. Please note that actual

results could materially differ from those expressed or implied by the forward-

looking statements in this presentation due to these risks and uncertainties. All

rights reserved. All other company names and product names are trademarks or

registered trademarks of their respective owners.

Investor Relations InquiriesWacom Co., Ltd.

TEL：+81-3-5337-6502 FAX：+81-3-5337-6519

Sumitomo Fudosan Shinjuku Grand Tower 31F,

8-17-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-6131, Japan

Wacom homepage http://www.wacom.com

IR website http://investors.wacom.com/en-jp/

http://www.wacom.com/

http://investors.wacom.com/en-jp/

Documents

Wacom Introduction & Business Updates