[Company analysis] Oki Electric Industry Co., Ltd. (沖電気工業)

「Oki Electric Industry Co., Ltd. (沖電気工業)」is an manufacturer of IT device and automatic deposit / withdrawal machine(ATM). They have the top share in Japan in the ATM field. Although it is not well known as a major electronics manufacturer, still this company has a long history of 130 years since its founding. Recently, they are expanding their business domain not only to communication equipment but also to new fields where IT areas sucu as internet security, software and services.  The number of consolidated employees is approximately 17,930.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Oki Electric Industry Co., Ltd.
Company name (Japanese)	沖電気工業
Date of establishment	1881
Headquarters location	〒105-8460 東京都港区虎ノ門1丁目7番12号
Capital	44,000
Consolidated sales	441,452
Consolidated operating profit	17,522
Consolidated total assets	365,503
Consolidated capital	100,200
Capital adequacy ratio	27.4%
Consolidated number of employees	17,930

 

 

 

2. Summary and Features

 
Although not well known in general,「Oki Electric Industry」is Japan's first telecommunications equipment manufacturer.This company started in 1881 and so it has a history of 130 years. They have been involved in the manufacture of telephone exchanges since their founding, and that is the reason why they have a deep relationship with 「NTT(Nippon Telegraph and Telephone Corporation)」.

From the 1960s, they started to expand their business area, by trying to be an electronic product manufacturers. At that time, they started production of business products such as teletype terminals and released the general-purpose personal computer "OKITAC-5090" that uses core memory for the first time in Japan. From the 70's, they provided various I / O devices for the financial industry, electronic printers, dot printers, etc. And this experiences allow them to gain the top shares of ATM market in Japan.

In 1975, they developed the world's first car phone system together with「Bell」. This is the beginning of the wireless technology of「Oki Electric Industry」, and by utilizing this technology, they have succeeded in developing vehicle-to-vehicle communication and other ETC technology. However, the long-lasting recession following the collapse of the Burble economy has also severely damaged the business of「Oki Electric Industry」. In the middle of the 90's, they anticipate that there will be opportunities in the Internet-related business, so they decided to focus on the network solutions field.

The current「Oki Electric Industry」is conducting their business in various fields. Even they supplied  submarine sonar system to JMSDF for military use. In addition, through the「Oki Data Corporation」, which is a subsidiary of the printer manufacturing and selling related products, their oversea sales account is about 70% in total sales. In past, they conducted PC and semiconductor manufacturing business. But they sold it to「Rohm(ローム)」and completely withdrawn. Now, printer business is the only part that can be recognized by general consumers.

 

 

 

3. Major Business

 

■ Information and communication business
They provide social infrastructure related solution services based on network data processing technology.

■ Mechatronics system business
They have the top share in Japan in the ATM field, which utilizes the core technology of “Oki Electric Industry”. Recently, they are developing ATMs for exchange in emerging countries and modular ATMs that can be installed in ordinary vehicles.

■ Printer business
Using LED technology, we handle color / monochrome printers, multi-function peripherals (MFP), etc.

■ EMS business
Based on the design and production technology of "Oki Electric Industry", they also supply mechatronics, electronic design and production contract services.

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		451,627	438,026	441,452
Consolidated operating profit		2,545	7,721	17,522
Consolidated total assets		360,724	371,778	365,503
Consolidated net assets		97,215	102,144	100,200
Breakdown of sales	Information and communication business	177,391	172,716	184,286
	Mechatronics system business	100,923	93,542	82,731
	Printer business	112,389	108,905	102,554
	EMS business	43,165	47,677	65,167
	Others	17,756	15,185	6,712