[Company analysis] Citizen Holdings Co., Ltd. (シチズン時計)

「Citizen Holdings Co., Ltd. (シチズン時計)」is a manufacturer of precision electronic devices(electronic desk calculators, electronic dictionaries, blood pressure monitors, and thermometers), and the world's largest watch maker. The number of consolidated employees is approximately 20,239.

 

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	Citizen Holdings Co., Ltd.
Company name (Japanese)	シチズン時計
Date of establishment	Wednesday, May 28, 1930
Headquarters location	〒188-8511 東京都西東京市田無町6-1-12
Capital	32,648
Consolidated sales	321,652
Consolidated operating profit	22,411
Consolidated total assets	413,911
Consolidated capital	267,547
Capital adequacy ratio	64.6%
Consolidated number of employees	20,239

 

 

 

2. Summary and Features

 
「Shokosha Watch Research Institute(尚工舎時計研究所)」which was founded in 1918 by Yamazaki Kamekichi(山崎亀吉), is the beginning of the「Citizen」. At the time of its establishment, this company operates with the cooperation from the Swiss companies for technology and capital. 「Shokosha Watch Research Institute」named the pocket watch released in 1924 as "CITIZEN", and this is the origin of current company name. Eventually, in 1930, the company name was changed to「Citizen Watch Co., Ltd.」.

However, during World War II, the company name was forcibly changed to「Dainippon Watch Co., Ltd.」due to the intention of the Japanese Imperial Army at that time. After the war, the company name returned to「Citizen Watch Co., Ltd.」and this company made an import / export contract with the American「Bulova Watch Company」. By this, they were abled to enter into the American market. As a result,「Citizen Watch」grew up as a one of the largest watch manufacturer in the world.

In 1973, Citizen's first quartz watch will be released. Three years later, the analog solar cell clock, which is the origin of "eco-driving" was released. Eventually, in 2003, the first watch equipped with "Eco-Drive" that has no necessary for regular battery replacement was released. The eco-drive equipped watch from「Citizen」is famous for its unique design that the solar panel cannot be seen from the front.

In addition,「Citizen」purchased the「Bulova」for 250 million dollars on January 10, 2008, and acquired the 「Frédérique Constant Group」of Switzerland in 2016. With these mergers, this company eventually became the world's largest watchmaker surpacing「Seiko Epson Corporation(セイコーエプソン)」. They have production bases mainly in China and Thailand, and the oversea sales account for about 70% in total sales

 

 

 

3. Major Business

 

■ Watch business
It is the main business and origin of「Citizen Watch」. Citizen's products are the mainstream of the quartz type, and they develop and sell practical products that mainly utilize the latest technologies such as titanium exterior, surface hardening technology, solar power generation and radio wave correction.

■ Machine tool business
They handle automobile, medical, and IT machine tools.

■ Device business
Utilizing the small precision processing technology accumulated in watch manufacturing, they are manufacturing various products such as LEDs and automobile parts.

■ Electronic equipment business
They also manufacture health machines such as commercial printers at convenience stores and electronic blood pressure monitors.

■ Other business
They also carry out jewelry-related businesses, and also handle leisure facilities such as ice skating.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		312,559	320,047	321,652
Consolidated operating profit		21,501	24,920	22,411
Consolidated total assets		395,887	409,909	413,911
Consolidated net assets		249,215	263,713	267,547
Breakdown of sales	Watch business	163,619	163,718	163,525
	Machine tool business	49,694	64,049	72,164
	Device business	69,462	65,596	60,807
	Electronic equipment business	21,774	20,580	19,330
	Others	8,008	6,102	5,824