Casio Computer Co.,Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Casio Computer Co.,Ltd.

Founded in 1946 by Tadao Kashio, Casio Computer Co., Ltd. started as a manufacturer of basic calculators. The company launched its first calculator, the Casio 14-A, in 1957. By 1965, Casio had produced the world's first electric compact calculator, the Casio 100, marking its foray into electronic calculation devices.

In the 1970s, Casio expanded its product line significantly. The introduction of the Casio fx-10 in 1972 marked the beginning of scientific calculators, while the Casio LC-78, released in 1974, was the world’s first calculator with a liquid crystal display. This technological advancement contributed to the growing popularity of calculators in educational institutions.

In 1980, Casio entered the musical instrument market with the release of the Casio CZ-101 synthesizer, establishing itself as a pioneer in the electronic musical instrument industry. By 1983, Casio had sold over 1 million keyboards, further solidifying its market presence.

During the 1990s, Casio expanded into the digital camera market. The release of the QV-10 in 1995 was a significant step, being one of the first consumer digital cameras available. This paved the way for the company's growth in the imaging and electronics domain.

As of March 2023, Casio reported revenue of approximately ¥360.5 billion (around $2.7 billion USD) for the fiscal year ending March 31, 2023. This represents a moderate increase from the previous year. The company's net income for the same period was approximately ¥23.5 billion (about $175 million USD), reflecting a healthy profit margin.

Casio has also focused on environmental sustainability and corporate social responsibility, setting targets to reduce greenhouse gas emissions by 30% by 2030 compared to 2019 levels. The company is actively working toward sustainable manufacturing processes and eco-friendly product designs.

In terms of stock market performance, as of October 2023, Casio Computer's share price is approximately ¥3,800, reflecting a year-to-date increase of around 15%. The company’s market capitalization stands at approximately ¥400 billion (around $3 billion USD).

Casio’s continuing innovation strategy includes developing products that integrate advanced technology such as artificial intelligence and IoT capabilities. The introduction of smartwatches and connected devices is part of its growth plan, aiming to capture a larger market share in the wearable technology segment.

Overall, Casio Computer Co., Ltd. has a rich history marked by innovation and diversification, maintaining relevance in the rapidly changing technology landscape while striving to enhance shareholder value and sustainability initiatives.

A Who Owns Casio Computer Co.,Ltd.

Casio Computer Co., Ltd., established in 1946, is a prominent player in various tech sectors, including calculators, watches, and musical instruments. The ownership structure combines public ownership with significant institutional holdings.

As of the latest financial reports, the largest institutional shareholders include major investment firms such as The Master Trust Bank of Japan and the Japan Trustee Services Bank. These institutions play a crucial role in influencing the company's strategic direction due to their substantial holdings.

Valuation-wise, Casio's market capitalization stood at approximately ¥327 billion (about $3 billion) as of October 2023. This valuation reflects the company's performance across its diverse product lines, including electronics and musical instruments, which collectively accounted for a revenue of ¥128 billion in the last fiscal year.

The company has been focusing on enhancing shareholder value through consistent dividend payments, with a current dividend yield of around 2.4%. In fiscal year 2023, Casio announced a total dividend payout amounting to ¥7.0 billion, reinforcing its commitment to returning profits to its shareholders.

Geographically, a significant portion of shares is held by Japanese investors, with approximately 70% of the ownership residing within Japan. This concentration highlights the domestic loyalty and market presence of Casio in its home country.

In terms of voting rights, Casio operates with a standard of one vote per share, allowing major shareholders to exert considerable influence over corporate governance and strategic decisions. The recent annual general meeting in June 2023 saw participation from around 80% of the voting shareholders, indicating robust engagement from its shareholder base.

Overall, the ownership of Casio Computer Co., Ltd. is characterized by a mix of institutional, individual, and corporate stakeholders, underpinned by a commitment to steady growth and shareholder returns.

Casio Computer Co.,Ltd. Mission Statement

Casio Computer Co., Ltd. emphasizes innovation, quality, and sustainability in its mission statement. The company aims to contribute to society through the development of original and creative products that leverage its unique technology and expertise. Below are key elements that define its mission:

• Innovation: Continuous research and development to produce cutting-edge electronic products.
• Quality: Commitment to high standards in manufacturing and product reliability.
• Sustainability: Focus on environmentally friendly practices and products.

The financial performance of Casio is reflective of its mission-driven approach. In the fiscal year ending March 2023, the company reported a consolidated revenue of ¥368.7 billion (approximately $2.8 billion), representing a year-over-year increase of 6.5%. The operating income was ¥32.1 billion (around $243 million), which is a growth of 9.3% compared to the previous fiscal year.

Here's a breakdown of the company's revenue by segment for the same fiscal year:

In addition, Casio has made strides in sustainability, with initiatives that have resulted in a carbon reduction of 25% in its manufacturing processes since 2017. By 2030, the company aims for a 50% reduction in greenhouse gas emissions from its production activities.

As of September 2023, Casio has also committed to increasing the use of recycled materials in its products, aiming for a target of 30% recycled content in all product lines by 2025. This aligns with its mission to create sustainable products that benefit society.

On the stock market, Casio’s performance has been robust, with a share price of approximately ¥3,060 as of October 2023, reflecting a year-to-date increase of 18.5%. The company has a market capitalization of around ¥325 billion (approximately $2.4 billion).

Casio's strategic focus on innovation and quality continues to drive its growth trajectory, as illustrated by its recent introduction of smartwatches that integrate advanced technology with traditional timekeeping. These products have seen strong consumer acceptance, contributing to an increase in market share within the wearables segment.

How Casio Computer Co.,Ltd. Works

Casio Computer Co., Ltd. operates across several segments, primarily including consumer products, system equipment, and timepieces. The company is known for its innovation in electronic products and utilizes a diversified business strategy to capture various market segments.

1. Business Segments

Casio divides its operations into three main categories:

• Consumer Products: This segment includes calculators, electronic musical instruments, and digital cameras. In fiscal year 2022, sales in this segment were approximately ¥115.3 billion.
• System Equipment: Consists of point-of-sale systems, electronic cash registers, and other business solutions. The revenue recorded in this segment for fiscal 2022 was about ¥55.6 billion.
• Timepieces: Encompasses Casio’s renowned watches. Sales from timepieces reached ¥73.5 billion in the same fiscal year.

2. Financial Performance

For the fiscal year ended March 31, 2023, Casio reported consolidated sales of ¥328.6 billion, representing a 6.3% increase from the previous year. The net income for the period was approximately ¥24.9 billion, yielding a net profit margin of 7.6%.

3. Global Presence

Casio's products are distributed worldwide, with significant markets in Asia, North America, and Europe. The company has production facilities in several regions, including Japan, China, and Thailand, contributing to an efficient supply chain.

4. R&D Investment

Casio is committed to innovation, allocating approximately 7.2% of its revenue to research and development in recent years. This has resulted in advances in product technology, particularly in smartwatches and electronic musical instruments.

5. Market Trends

The global consumer electronics market is projected to grow at a CAGR of 4.9% from 2022 to 2027. Casio's strategic focus on digital technology and sustainability aligns with this trend, positioning the company for potential growth opportunities.

6. Competitive Landscape

Casio faces competition from major players like Samsung, Canon, and Sony. The competitive analysis indicates that Casio is leveraging its niche strengths in specific product categories, such as high-quality calculators and durable watches.

7. Sustainability Initiatives

Casio has implemented various sustainability practices, with a goal to reduce CO2 emissions by 30% by 2030 compared to 2013 levels. The company is also investing in eco-friendly product designs and packaging solutions.

8. Recent Product Innovations

In 2023, Casio launched the G-SHOCK MOVE smartwatch, which integrates advanced features such as activity tracking and smartphone connectivity. This product illustrates Casio's commitment to innovation and capturing the growing smartwatch market.

9. Future Outlook

Looking ahead, Casio aims to enhance its product offerings and expand its market presence, targeting a sales increase of 10% in the upcoming fiscal year while continuing to invest heavily in R&D and sustainability initiatives.

How Casio Computer Co.,Ltd. Makes Money

Casio Computer Co., Ltd. generates revenue through diverse product categories, primarily focusing on electronics, calculators, watches, and musical instruments. As of the fiscal year ending March 2023, Casio reported total sales of approximately ¥360.3 billion.

The revenue breakdown highlights the company's primary segments:

The most significant contributor is the Timepieces segment, which yielded approximately ¥107.5 billion in revenue. This segment includes popular models such as G-SHOCK and Baby-G, which have achieved global recognition, accounting for 29.8% of total revenue.

Electronic Components, primarily related to quartz crystal components, achieved ¥82.6 billion, making up 22.9% of the revenue, driven by demand in the automotive and mobile device markets.

In the Calculators segment, Casio generated about ¥45.3 billion, representing 12.6% of total revenue. Factors such as educational reforms and increasing digitalization in education have bolstered this category.

The Musical Instruments division, including digital pianos and synthesizers, brought in ¥40.7 billion, or 11.3% of the revenue. Popular models like the Privia and Celviano contribute to sustained interest in this segment.

Casio also earns from various other products, including printers and label makers, which accounted for ¥84.2 billion or 23.4% of the total revenue.

Revenue growth is also influenced by geographic distribution. In 2022, Casio reported revenue performance across key regions, which is reflected in the following table:

Japan remains the largest market, contributing ¥135.4 billion or 37.6% of the total revenue. Meanwhile, Asia's contribution is also significant at ¥117.8 billion, accounting for 32.7%.

Casio's strategy also includes product innovation and updates, such as the introduction of smartwatches that connect to smartphones, catering to the growing demand for wearable technology. The combination of traditional product lines with advanced technology allows Casio to capture broader market segments and consumer interests.

To maximize profitability, Casio continually invests in research and development, aiming to enhance product features and functionalities. The R&D expense for the fiscal year was approximately ¥22.1 billion, reflecting an increase of 5.3% from the previous year.