Kyocera Corporation: history, ownership, mission, how it works & makes money

A Brief History of Kyocera Corporation

Founded in 1959 in Kyoto, Japan, Kyocera Corporation began as a manufacturer of ceramic insulators for electronic components. The company was established by Kazuo Inamori, who aimed to innovate in the field of advanced materials.

In its early years, Kyocera focused on expanding its ceramic technology and quickly diversified into various sectors, including telecommunications, semiconductor components, and solar energy. By the 1970s, Kyocera was already a leading manufacturer of ceramic capacitors.

In 1982, Kyocera made a significant move by entering the telecommunications market, forming partnerships to produce mobile phones and related infrastructure. The introduction of their first mobile phone in 1984 marked a new era for the company, allowing it to leverage its materials expertise in a growth-oriented market.

By the 1990s, Kyocera expanded its reach globally, establishing production facilities in the United States, Europe, and Asia. In 1996, the company recorded a revenue of approximately ¥1 trillion (about $8.5 billion at the time), marking its position as a multinational corporation.

In 2000, Kyocera acquired the cellular phone division of Mitsubishi Electric, augmenting its product range. During this decade, the company also ventured into the solar energy market, becoming a significant player in the photovoltaic technology sector.

Kyocera's commitment to sustainability led to the establishment of the Kyocera Solar Division in 2004. By 2010, the company had become the third-largest manufacturer of solar panels globally, with a production capacity exceeding 1.5 GW.

The financial performance of Kyocera has been robust in recent years. For the fiscal year 2022, the company reported revenue of approximately ¥1.6 trillion (around $12 billion), with an operating profit of ¥262 billion (approximately $2.08 billion).

Keen on innovation, Kyocera has invested heavily in research and development. In 2022, the company allocated ¥107 billion (approximately $1 billion) to R&D, representing about 6.7% of its total revenue.

Additionally, Kyocera is recognized for its commitment to sustainability. The company aims for a 50% reduction in CO2 emissions by 2030, relative to 2018 levels, enhancing its portfolio in eco-friendly products.

The stock performance of Kyocera reflects its stability and growth, with shares trading at approximately ¥5,600 as of October 2023, representing an increase of 15% over the past year. Market capitalization stands at approximately ¥1.8 trillion (about $14 billion).

Kyocera continues to diversify its business segments, with notable investments in electronics, telecommunications, and environmental technologies, ensuring its place as a leader in multiple sectors of the global market.

A Who Owns Kyocera Corporation

Kyocera Corporation, a publicly traded company listed on the Tokyo Stock Exchange under the ticker symbol **6971**, operates in the fields of ceramics, electronics, and telecommunications. As of the latest available data, Kyocera's market capitalization stands at approximately **$22.78 billion**.

The ownership structure of Kyocera is diverse, comprising various institutional and individual shareholders. The largest shareholders include:

Among the institutional investors, notable names include **The Master Trust Bank of Japan**, which holds around **5.5%** of the shares, and **Nippon Life Insurance Company**, with a stake of approximately **4.0%**. In total, the top ten institutional shareholders represent a significant part of Kyocera's ownership structure.

In addition, the founding family, including co-founder **Kazuo Inamori**, retains substantial control over the company, with an estimated percentage ownership of **20%**. This gives the Inamori family a significant influence on corporate decisions.

As of March 2023, Kyocera reported total assets of **$14.5 billion**, with revenues of approximately **$15.5 billion** in the fiscal year ending March 2023. The earnings before interest and taxes (EBIT) for the same period was **$2.3 billion**, indicating a strong performance in its core business areas.

Kyocera's share price has shown stability, trading in a range of **¥3,200 to ¥4,000** per share over the past year. The price-to-earnings (P/E) ratio stands at **22**, which is in line with industry standards for companies in the electronics sector.

Overall, Kyocera's ownership is characterized by a blend of institutional, personal, and founding family interests, contributing to its resilient operational strategies in the global market.

Kyocera Corporation Mission Statement

Kyocera Corporation, a global leader in electronics and ceramics, functions under the guiding philosophy of enriching the lives of people and contributing to the global community. The company's mission statement emphasizes its commitment to sustainable practices, technological advancement, and corporate social responsibility.

In 2023, Kyocera reported consolidated revenue of approximately ¥1.5 trillion (approximately $13.6 billion) for the fiscal year ending March 31, 2023. This marked a 6.5% increase year-over-year, reflecting growth across multiple segments.

The corporation operates through several business segments including:

• Components and Devices
• Document Solutions
• Industrial Ceramics
• Healthcare
• Solar Energy

Each business unit aligns its operations with Kyocera's mission to innovate and create products that enhance people's lives. The document solutions segment has seen a significant shift in focus towards sustainable practices, with a 20% increase in sales of eco-friendly printing solutions in the past year.

Kyocera's commitment to corporate social responsibility is reflected in its environmental goals. The company aims to achieve a 30% reduction in CO2 emissions by 2030 compared to 2013 levels. In 2022, Kyocera successfully reduced its emissions by 18%, making significant strides towards this target.

The company also invests heavily in research and development, spending approximately ¥100 billion annually, which accounts for about 6.7% of its total revenue. This dedication to R&D underpins Kyocera's mission to innovate and remain at the forefront of technological advancements.

Kyocera engages in community activities and educational initiatives, reaffirming its commitment to social responsibility. In 2022, the corporation contributed over ¥3 billion to various community efforts, focusing on education and environmental sustainability programs.

Overall, Kyocera Corporation's mission statement encapsulates its dedication to innovation, sustainability, and global community support, guiding its strategic decisions and operational frameworks across diverse markets.

How Kyocera Corporation Works

Kyocera Corporation, a global leader in ceramics and electronics, operates through several key business segments that drive its revenue and innovation. The company was founded in 1959 and is headquartered in Kyoto, Japan. As of March 2023, the company reported total revenue of approximately ¥1.46 trillion (around $11.4 billion), showcasing a growth trajectory fueled by its diverse product offerings.

Kyocera’s operations can be segmented into three main categories: Ceramics, Electronics, and Telecommunications. The Ceramics segment is the largest, contributing roughly 40% to total sales, with a range of products including cutting tools, industrial ceramics, and solar cells. The Electronics segment accounts for around 35% of revenue, focusing on semiconductor packaging, capacitors, and printed circuit boards. The Telecommunications segment, while smaller at approximately 25%, encompasses mobile devices and communication infrastructure.

Key Financial Performance Indicators

The company’s strategic initiatives include investment in R&D, focusing on innovations in green technologies and smart devices. Kyocera spent approximately ¥120 billion on R&D in 2023, representing about 8.2% of total sales, which supports its commitment to sustainability and product innovation.

Kyocera also emphasizes a decentralized management approach, allowing its subsidiaries to operate with a degree of autonomy while aligning with the corporate philosophy of “Respect the Divine and Love People.” This principle guides Kyocera's commitment to improving workplace conditions, enhancing employee satisfaction, and contributing to community welfare.

Global Presence

With over 70 consolidated subsidiaries worldwide, Kyocera has established a robust global footprint. The company operates production facilities in Japan, Europe, the United States, and Asia, which allows for optimized supply chains and enhanced customer service.

In North America, Kyocera’s revenue reached approximately $1.2 billion in 2022, with significant operations in electronic components and solar energy products. The European market contributed around €800 million to the overall revenue, driven primarily by the ceramics and electronics segments.

Sustainability Efforts

Kyocera is committed to sustainable practices, evidenced by its goal to achieve zero waste at its production facilities. The company has implemented eco-friendly manufacturing processes, which reduced CO2 emissions by 30% over the last decade. In 2023, it's reported that 56% of its total power consumption was sourced from renewable energy.

The initiatives and strong financial performance illustrate Kyocera Corporation's resilience and adaptability in an ever-evolving technological landscape. The company's focus on innovation, sustainability, and a decentralized operational strategy positions it well for future growth and stability.

How Kyocera Corporation Makes Money

Kyocera Corporation generates revenue through a diverse portfolio of business segments, including ceramics, electronics, and telecommunications. The company reported a total revenue of approximately ¥1.57 trillion (around $14.4 billion) for the fiscal year 2022. This figure marks a 9.4% increase compared to the previous fiscal year.

Business Segments

• Ceramics: Contributing roughly ¥600 billion in revenue, the ceramics segment includes products used in electronics and industrial applications.
• Electronics: This segment earned about ¥550 billion, focusing on semiconductor components and devices, which have experienced increased demand in various sectors.
• Telecommunications: Generating around ¥300 billion, this division specializes in communication equipment and services.
• Other Products: This includes office equipment and systems, contributing approximately ¥120 billion.

Market Performance

In terms of stock performance, Kyocera’s shares (Ticker: 6971) have shown resilience. As of October 2023, the stock price was approximately ¥6,000 per share, with a market capitalization of about ¥2.2 trillion (around $20.4 billion).

Profitability Metrics

Kyocera's operating income for the fiscal year 2022 was approximately ¥170 billion, yielding an operating margin of around 10.8%. Net income for the same period reached about ¥140 billion, leading to a net profit margin of roughly 8.9%.

Strategic Initiatives

The company has been focusing on sustainability and innovation, investing heavily in research and development, with an R&D budget of approximately ¥100 billion for fiscal year 2022. This investment aims to enhance product offerings in areas like renewable energy and advanced materials.

On the global stage, Kyocera operates in more than 40 countries and has a workforce exceeding 75,000 employees. The company continues to adapt to market demands and consumer trends, which is essential in driving future revenue growth.

Recent Developments

In 2023, Kyocera announced a partnership with several technology firms to enhance its semiconductor production, aiming to capture a larger share of the growing electric vehicle market, projected to be worth over $100 billion by 2026. This strategic shift reflects Kyocera's commitment to innovation and market adaptation.