■The direction of the next medium-term management policy (Wacom Chapter 4)

1. Direction (summary)

Wacom ＜6727＞ presented the direction of the next medium-term management policy (Wacom Chapter 4) starting from the 2026/3 fiscal year (the final draft is scheduled to be announced in 2025/5). Based on the recognition that there are market domains*1 that achieve sustainable growth, such as the digital content production/creation market, education DX Edtech market, and workflow DX market, among business opportunities related to digital pens, the idea is to evolve from Wacom Chapter 3 during the preparation period to the implementation period (commercialization and market implementation of technology development that will serve as a growth engine for the next generation) in order to capture these growth. The source of value provided is defined as a “technology portfolio that continues to evolve” and “collaboration with the community (user, technology),” and the new technical value*2 that has been prepared so far is implemented as an “integrated pen experience.” Furthermore, in addition to target use cases up until now, the policy is to pioneer new “portable creative,” “creative education in K12 (elementary, middle, high school),” and “specific applications,” and deliver “pen integration experiences” to target use cases in the shortest distance*3.

*1 As for each average growth rate (2024 to 2030), the digital content production/creation market is expected to be 16.3%, the education DX Edtech market is 13.4%, and the workflow DX market is 24.1% (from the company's financial results briefing materials, respectively).

*2 In addition to pen input technology and sensor module technology, digital ink (combination with AI, security, XR space, cloud) technology, etc.

*3 Our product solutions aim to reduce the weight of operations centered on e-Store/B2B. Also, for OEMs, in addition to providing component modules, we will promote the provision of platforms (technology platforms equipped with hardware, software, services, and UI that provide integrated experiences related to the Pen experience).

2. Business Size and Profitability

Currently, the image of the 2023/5 announcement has been maintained, and it is assumed that sales for the final year (fiscal year ending 2029/3) will be on a scale of 150 billion yen (within the range of about 10% up and down), and operating profit margins will operate at the 10% level (plan to update it along with other financial indicators in 2025/5).

(Written by FISCO Visiting Analyst Ikuo Shibata)