[Company analysis] Casio Computer Co., Ltd. (カシオ計算機)

「Casio Computer Co., Ltd. (カシオ計算機)」manufactures not only calculators but also various kind of personal information devices such as electronic stationery and watches, and system equipment and electronic devices. Recently, radio-controlled watches, electronic dictionaries and TFT LCDs. They even used to handle mobile phones and digital cameras business before, but now it was completely withdrawn. The number of consolidated employees is approximately 11,868.

 

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	Casio Computer Co., Ltd.
Company name (Japanese)	カシオ計算機
Date of establishment	Saturday, June 1, 1957
Headquarters location	〒151-8543 東京都渋谷区本町1-6-2
Capital	48,592
Consolidated sales	298,161
Consolidated operating profit	30,262
Consolidated total assets	357,530
Consolidated capital	211,594
Capital adequacy ratio	59.2%
Consolidated number of employees	11,868

 

 

 

2. Summary and Features

 
Jusk like the company name, "Casio Computer," they have been manufacturing mechanical computers for a long time, but it was not a founding business. 「Casio Computer」was established in April 1946 by Japanese engineer Tadao Kashio(樫尾忠雄). At the time of its founding, he invented and sold tobacco-related tools. Among them, his younger brother, Kashio Tokio(樫尾俊雄), participated in an exhibition held in Ginza in 1949, and saw an existing computer operating on the principle of the ring pipe(指輪パイプ), then they decide to develop a calculator.

Calculators at the time were in a primitive form that they were manually operated using gears and motors. However, the Kashio brothers studied computers that applied the solenoid principle, and in 1954 invented Japan's first mechanical calculator, which was the size of a single desk. Then, following the trends of the times, an electronic desktop calculator was released, and in 1972, the world's first personal computer, "Casio Mini" was released. It will be a huge hit with a cumulative total of more than 10 million units shipped.

They also started the wristwatch manufacturing business, which started with analog watches. However, soon they developed the world's first digital wristwatch was invented in 1974, and the wristwatch equipped with a calculator was also released for the first time in the world. They leads the field of electronic watches. Especially in 1983, with the release of the "G-SHOCK", it was recognized as a fashion item, not a mere watch, mainly by young people in Japan and the United States. And it become steady seller product. This digital watch business still contributes significantly to the sales of the「Casio Computer」.

In 1995, they launched the world's first consumer-use digital camera with an LCD monitor, the "QV-10" and made a full-scale entry into the digital camera market. In 2002, they released the thin and light digital camera "EXILIM" to increase our share of the small digital camera market. However, with the advent of the smartphone era, the business performance of the Casio Computer digital camera business deteriorated. Especially since 2015, the market of smartphone cameras has improved dramatically and it has even interrupted the digital camera market.

Along with that, there were fundamental problems with the digital camera business of「Casio Computer」. Actually, This company did not possess the original core technology in the digital camera business. This was because they were specialized in specific applications such as "compact digital cameras" that focused on idea power rather than technical advantage. So, as the specifications and application for the smartphone are improved, digital camera business of Casio lose its competitive advantage at all. As a result, they announced the complete withdrawal from the digital camera business in 2018.

 

 

 

3. Major Business

 

■ Consumer business
They handle watches, table clocks, electronic dictionaries, calculators, electronic stationery, electronic musical instruments, etc., and account for about 85% of Casio's total sales.

■ System business
Handy terminals, electronic cash registers, office computers, data projectors, etc. are also different.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		321,213	314,790	298,161
Consolidated operating profit		30,636	29,568	30,262
Consolidated total assets		351,452	364,398	357,530
Consolidated net assets		196,332	206,691	211,594
Breakdown of sales	Consumer business	272,804	268,905	257,354
	System business	39,734	38,302	33,821
	Others	8,675	7,583	6,986