Latest news with #KDDI
Business Wire
15-05-2025
- Business
- Business Wire
Oasis Announces a Second Campaign -- A Decade After the First -- to Create A Better Kyocera
HONG KONG--(BUSINESS WIRE)--Oasis Management Company Ltd. ('Oasis') is manager to funds that beneficially own shares in Kyocera Corporation (6971 JP) ('Kyocera' or the 'Company'). Oasis has adopted the Japan FSA's 'Principles of Responsible Institutional Investors' (a.k.a. the Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with its investee companies. Oasis first approached Kyocera in 2015 with proposals to divest loss-making businesses and reduce cross-shareholdings in order to achieve a much-needed turnaround, but the Company failed to implement any of these suggestions. Since then, Kyocera's stagnation and weak performance has only become more evident, to the frustration of all stakeholders. Support for Kyocera's management plummeted at its Annual General Meeting (AGM), with the approval rate for the Company President falling from 96% in 2015 to just 65% in 2023. In response, management has recently announced reforms, including divesting underperforming businesses (representing 10% of revenue), selling one-third of its KDDI shares, and implementing JPY400bn in buybacks over the next four years. Unfortunately, we believe these reforms are inadequate and do not address the Company's key issues. Whilst Kyocera has excellent technical capabilities in its core businesses, including Ceramic Packages and Fine Ceramic Components, Kyocera has failed to maximize on opportunities in its core businesses due to over diversification and subsequent lack of focus. Managing such a diverse array of businesses has made agile decision-making nearly impossible and has limited Kyocera's ability to develop effective business strategies. As a result, Kyocera has fallen behind its specialist competitors as reflected by its effectively flat stock price over the last ten years compared to Maruwa Co., Ltd., TDK Corporation, and Ibiden Co., Ltd., which saw gains of +1,118%, +191%, and +159% respectively over the same period. Kyocera's plan to sell one-third of its KDDI holdings and implement a JPY400 billion buyback over the next two years appears to be reactionary rather than carefully considered. Kyocera owns cross-shareholdings of over JPY1.7 trillion, including its 15.29% stake in KDDI, and received a total dividend of almost JPY50 billion in the last fiscal year. We believe that, in the short-term, Kyocera should use a mix of leverage and sales of cross-shareholdings to finance JPY1 trillion of buybacks over the next four years. Without deeper reforms, Kyocera's ROE will likely remain under 5% and cross-shareholdings, as a proportion of shareholders' equity, will remain far above the ISS threshold of 20% of net assets, leading to lower approval ratings as shareholders demand ever increasing accountability for operational performance, capital efficiency and improved corporate governance. To address these issues, Oasis urges Kyocera to implement the following seven-point plan: Divest non-core businesses amounting to over JPY660 billion of revenue. Exit the Organic Packages to prevent further losses. Restructure its KAVX subsidiary to achieve higher margins in line with peers. Stop losses by halting investment into GaN and millimeter-wave technologies which have little potential to produce material returns. Focus on its core business such as ceramics to capture untapped opportunities. Commit to aggressive M&A to reinforce core businesses. Announce a buyback program of JPY1 trillion over the next four years, amounting to approximately 37% of the Company. By implementing this plan, we believe that the stock could see an upside of over 90% from current levels. Seth Fischer, Founder & Chief Investment Officer of Oasis, said: " Kyocera's excessive diversification has prevented it from long realizing its full potential. The Company continues to support underperforming businesses while failing to prioritize investment and growth opportunities within its best businesses such as ceramics packaging, and the automotive and semiconductor sectors. With cross-shareholdings still accounting for 53% of its net assets and an ROE of just 0.8%, the time for meaningful change is now. Management needs to address the twin problems of over-diversification and over-capitalization of its balance sheet by exiting underperforming businesses, leaning into its best growth opportunities, and taking a much more ambitious stance on unwinding cross-shareholdings to improve returns on capital." Full details can be viewed on the homepage of All stakeholders are encouraged to contact Oasis at info@ *** Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at Oasis has adopted the Japan FSA's 'Principles for Responsible Institutional Investors' (a.k.a. the Japan Stewardship Code) and, in line with those principles, Oasis monitors and engages with our investee companies. The information and opinions contained in this press release (referred to as the "Document") are provided by Oasis Management Company ('Oasis') for informational or reference purposes only. The Document is not intended to solicit or seek shareholders to, jointly with Oasis, acquire or transfer, or exercise any voting rights or other shareholder's rights with respect to any shares or other securities of a specific company which are subject to the disclosure requirements under the large shareholding disclosure rules under the Financial Instrument and Exchange Act. Shareholders that have an agreement to jointly exercise their voting rights are regarded as Joint Holders under the Japanese large shareholding disclosure rules and they must file notification of their aggregate shareholding with the relevant Japanese authority for public disclosure under the Financial Instruments and Exchange Act. Except in the event that Oasis expressly enters into the agreement as a joint holder requiring such disclosure, Oasis does not intend to take any action triggering reporting obligations as a Joint Holder. The Document exclusively represents the opinions, interpretations, and estimates of Oasis.
Bloomberg
14-05-2025
- Automotive
- Bloomberg
KDDI to Buy Back $2.7 Billion of Stock Including Kyocera's Stake
KDDI Corp. said it will buy back as much as ¥400 billion ($2.7 billion) worth of its shares, with Toyota Motor Corp. and Kyocera Corp. tendering their stakes. The mobile network operator joins a growing trend of unwinding cross shareholdings among major Japanese businesses. Owning stakes in partner companies had once been lauded for encouraging collaboration and mutual support, but is increasingly now coming under scrutiny from regulators keen on promoting greater transparency in the interests of minority shareholders.
Nikkei Asia
07-05-2025
- Business
- Nikkei Asia
Japan's KDDI and NEC to partner on supply chain, infrastructure cybersecurity
TOKYO -- Japanese telecom company KDDI and IT group NEC plan to start a joint cybersecurity business as soon as this year, Nikkei has learned, eyeing demand for protecting crucial infrastructure and supply chains. Japan's cybersecurity field is dominated by the Nippon Telegraph and Telephone (NTT) group, which provides a nearly full range of services. Rival KDDI hopes to find a path to growth overseas by partnering with NEC.
Yomiuri Shimbun
07-05-2025
- Business
- Yomiuri Shimbun
Japan's KDDI Introduces Direct Mobile Phone Connections via Spacex's Starlink Satellite Network
Yomiuri Shimbun file photo One of KDDI Corp. headquarters in the Shinjuku district in Tokyo. KDDI Corp. has started a service for the direct connection of smartphones with the Starlink satellite network of SpaceX of the United States. It is the first time in Japan that smartphone connection services using satellites has become available. Even in places that were out of the service areas of mobile phones in the nation, some kinds of message information can be transmitted and received. From summer this year, KDDI will make it possible for its smartphone subscribers to access the internet. Subscribers to KDDI's au brand smartphones can use the new service free of charge for the time being. Although applications do not need to be made for the new service, subscribers need to use iPhone models of Apple Inc., Galaxy models of Samsung Electronics Co. or other models that are compatible with Starlink. In the direct connection service, smartphone subscribers can transmit and receive radio waves via Starlink satellites without accessing wireless access points. Even in out-of-service places, such as mountainous areas and on the sea, KDDI subscribers can transmit and receive short message service texts, share location information and receive emergency earthquake warnings. Subscribers using smartphones with the Android operating system of Google LLC can send texts of questions to conversational AI programs. Prior to rolling out the new service, KDDI provided antennas for Starlink connection to areas damaged by the Noto Peninsula Earthquake.
Japan Times
24-04-2025
- Business
- Japan Times
KDDI aims to use direct satellite link for drones
KDDI plans to utilize its new service connecting smartphones directly with Space X's Starlink satellite communication network to operate drones, President and CEO Hiromichi Matsuda said. A direct link with satellites will make it easier to operate drones in mountainous areas and other regions where radio waves are hard to reach, Matsuda said in a recent interview. "We hope to resolve the pain points in drones," said Matsuda, who took the helm of the telecommunications company on April 1. On April 10, KDDI became the first Japanese company to launch a direct link between smartphones and the Starlink network, a service that allows messages to be sent and received wherever there is line of sight to the sky without the need to relay radio waves via ground base stations. "We hope to provide a sense of security from connectivity at any time," Matsuda said. The service is expected to enhance the stability of communications with drones, he said, adding that drone operations "will become more convenient by being connected with the sky." The service is expected to help promote the use of drones for transportation of goods in mountainous areas and for inspections of dams, bridges and other infrastructure in areas where radio waves are hard to reach. Among KDDI's domestic rivals, Rakuten Mobile also plans to provide a similar service connecting smartphones directly with satellites. NTT Docomo and SoftBank separately aim to launch a network service using high altitude platform stations, or HAPS, which send radio waves from unmanned aircraft flying in the stratosphere 20 kilometers from the ground.
