[Company analysis] Kyocera Corporation (京セラ)

「Kyocera Corporation (京セラ)」is headquartered in Kyoto, and handles electronic devices, information devices, communication devices, solar cells, ceramics, jewelry, medical products(artificial joints, dental implants, etc.). In the industrial parts market, they have the highest sales volume in Japan, and overseas sales account for about 60% of the total sales. It is one of the three largest parts manufacturers in Japan with sales of over 1 trillion yen, 「Kyocera Corporation(京セラ)」,「TDK Corporation」and「Murata Manufacturing(村田製作所)」. The number of consolidated employees is about 76,863.

 

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	Kyocera Corporation
Company name (Japanese)	京セラ
Date of establishment	Wednesday, April 1, 1959
Headquarters location	〒612-8501 京都府京都市伏見区竹田鳥羽殿町6
Capital	115,703
Consolidated sales	1,577,039
Consolidated operating profit	95,575
Consolidated total assets	3,157,077
Consolidated capital	2,424,506
Capital adequacy ratio	76.8%
Consolidated number of employees	76,863

 

 

 

2. Summary and Features

 
Since its founding in 1959,「Kyocera」has been manufacturing fine ceramic parts including ceramic insulators under the name「Kyoto Ceramic Co., Ltd.(京都セラミック株式会社)」. This company was originally a subcontractor of 「Mitsubishi Electric Corporation(三菱電機)」, but in 1966, they received a large order from「IBM」for a large computer integrated circuit board. In 1969, they received receive a large amount of order from「Intel」 for the capacitor circuit. By this event,「Kyocera」made a full-scale entry into the American market.

From the mid-1970s, they started to produce various applications of ceramic products, including photovoltaic modules, using their own material technology. In 1982, the company name was changed to the current「Kyocera Corporation」, the business area was expanded. Now they became a global company who handles electronic parts, smartphones, solar power generation systems with 70,000 employees in the world.

As mentioned above,「Kyocera」is one of the few Japanese companies that still handles smartphones, along with 「Sony Corporation(ソニー)」and「Sharp Corporation(シャープ)」. They purchased the mobile phone manufacturing business of「Qualcomm」in 2000, and as of 2008, they also purchased the mobile phone and PHS business from「SANYO Electric Co., Ltd.」for 50 billion yen. As of 2011, they launched the first in-house smartphone "Zio" and they are selling this through「AU」,「Softbank」and「UQ mobile」. 

One of the characteristics of「Kyocera」is that it has never been in the red since its founding. Even during the Subprime mortgage crisis of 2007, this company still maintained its profitable business tradition of sales and gain profit before tax of 55.8 billion yen amid the global recession. The driving force behind this is the diversification strategy. Since its founding,「Kyocera」has conducted not only a core business of ceramic electronic components, but also various businesses such as office equipment, multifunction devices, sports facilities, leisure facilities and even hotel management. 

「Kyocera」also operates several large-scale solar power plants. In March 2016, they bought an international cutting tool company called「SGS Tool Company」for $ 88 million. At present,「Kyocera」is the largest shareholder of「KDDI Corporation」, a leading Japanese telecommunications company, with approximately 12.7% stake. In addition, they also have 2.1% shares of「Japan Airlines Co., Ltd.(日本航空)」.

 

 

 

3. Major Business

 

■ Fine ceramic parts related business
They develop and manufacture automobile parts by taking advantage of fine ceramics such as parts for semiconductor manufacturing equipment.

■ Semiconductor parts related business
They handle semiconductor / organic ceramics and crystal related parts used in smartphones and digital cameras.

■ Fine ceramic application products business
They are utilizing fine ceramic technology in various fields such as solar cell panels and artificial joints.

■ Electronic device related business
They manufacture capacitors, connectors, liquid crystal displays and other electronic components used in PCs, smartphones, TVs, etc.

■ Communication equipment related business
They are currently manufacturing smartphones, mobile phones, tablets, etc.

■ Information equipment-related business
They handle digital multi-function peripherals and printers.

■ Other
They are engaged in information communication service business, development of optical parts, sports and leisure facilities, and hotel management.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,479,627	1,422,754	1,577,039
Consolidated operating profit		92,656	104,542	95,575
Consolidated total assets		3,095,049	3,110,470	3,157,077
Consolidated net assets		2,373,762	2,418,909	2,424,506
Breakdown of sales	Industrial・Automobile parts	0	230,229	287,620
	Semiconductor related parts	236,265	245,727	257,237
	Electronic devices	290,902	240,798	305,145
	Communication	0	252,641	255,535
	Document solution	0	324,012	371,058
	Life・Environment	0	149,207	112,212
	Fine ceramic	95,092	0	0
	Fine ceramic application	247,516	0	0
	Communication device	170,983	0	0
	Informatiuon device	336,308	0	0
	Others	146,897	22,066	18,827
	Adjustments	-44,336	-41,926	-30,595