Conference Call Material

Transcription

1 January 29, 2016 Conference Call Material For the Nine Months Ended December 31, 2015 Goro Yamaguchi President and Representative Director

2 Today s Presentation 1. Financial Results for the Nine Months Ended December 31, Financial Forecasts for the Year Ending March 31,

3 1. Financial Results for the Nine Months Ended December 31, Financial Forecasts for the Year Ending March 31,

4 Financial Results for First Nine Months of FY3/ Comparison with first nine months of FY3/ Nine months ended December 31, Amount % to net sales Amount % to net sales Amount % Net sales Profit from operations Pre-tax income Net income attributable to shareholders of Kyocera Corporation Capital expenditures Depreciation R&D expenses 1,101, % 1,093, % -8, % 90, % 66, % -24, % 114, % 97, % -17, % 73, % 59, % -14, % 41, % 50, % 9, % 44, % 47, % 2, % 40, % 44, % 3, % Average exchange rate (yen) US$ Euro Foreign currency fluctuation effect on; (compared with the previous same period) Net sales Pre-tax income Approx. 42 billion Approx. 8 billion Approx. 41 billion Approx. 6 billion 3

5 Financial Results by Reporting Segment (1) Fine Ceramic Parts Group Nine months ended December 31, Amount % Sales 66,128 70,342 4, % Operating profit 11,167 11, % Operating profit ratio(%) 16.9% 16.9% - - <Major factors for changes> Increased sales of components for industrial machinery such as semiconductor processing equipment as well as automotive components such as camera modules Increased profit along with sales expansion Semiconductor Parts Group Nine months ended December 31, Amount % Sales 159, ,032 5, % Operating profit 24,617 24, % Operating profit ratio(%) 15.4% 14.6% - - <Major factors for changes> Increased sales of packages and substrates for the communications market, particularly for smartphones Increased sales of packages for LEDs for automotive-related markets Decreased profit due to the impact of a decline in product prices 4

6 Financial Results by Reporting Segment (2) Applied Ceramic Products Group Nine months ended December 31, Amount % Sales 189, ,763-11, % Operating profit 9,570 12,498 2, % Operating profit ratio(%) 5.1% 7.0% - - <Major factors for changes> Increased sales of cutting tool business primarily for automotive-related markets Decreased sales of solar energy business in Japan Increased profit due mainly to efforts to reduce costs in the solar energy business Electronic Device Group <Major factors for changes> Increased sales of capacitors for smartphones Nine months ended and printing devices for industrial equipment December 31, Sales contribution from Nihon Inter Amount % Electronics Corporation since September 2015 Sales 213, ,780 6,730 Decreased profit due to the recording of 3.2% costs of approx. 18 billion such as Operating profit 28,281 3,784-24, % impairment loss on goodwill in Display business, and of approx. 5 billion for legal Operating profit ratio(%) 13.3% 1.7% - - disputes involving intellectual property issues at AVX Corporation 5

7 Financial Results by Reporting Segment (3) Telecommunications Equipment Group Nine months ended December 31, Amount % Sales 146, ,178-22, % Operating profit -3,223-3, <Major factors for changes> Decreased sales of PHS-related products and low-end handsets as well as reduced number of new model introductions Recorded losses due to sales decline Operating profit ratio(%) Information Equipment Group Nine months ended December 31, Amount % Sales 241, ,375 3, % Operating profit 25,432 17,484-7, % Operating profit ratio(%) 10.5% 7.1% - - <Major factors for changes> Increased sales due to growing sales volumes of printers and MFPs through efforts to expand sales Decreased profit due mainly to increased raw material costs reflecting the impact of strong U.S. dollar 6

8 Financial Results by Reporting Segment (4) Others Nine months ended December 31, Amount % Sales 123, , % <Major factors for changes> Sales remained roughly on par Increased profit due to the recording of profit from a sale of assets Operating profit 4,095 11,334 7, % Operating profit ratio(%) 3.3% 9.2% - - 7

9 1. Financial Results for the Nine Months Ended December 31, Financial Forecasts for the Year Ending March 31,

10 Financial Forecasts for the Year Ending March 31, 2016 Year ended March 31, 2015 Year ending March 31, 2016 (Forecast) Previous (October 2015) Revised (January 2016) s compared with Net sales Profit from operations Pre-tax income Net income EPS (Diluted-yen) Capital expenditures Depreciation R&D expenses Amount % to net sales Amount % to net sales Amount % to net sales Year ended March 31, 2015 Previous forecast 1,526, % 1,530, % 1,480, % -46,536-50,000 93, % 110, % 85, % -8,428-25, , % 140, % 135, % 13,138-5, , % 85, % 90, % -25,875 5, ー ー ー , % 70, % 70, % 13,330 ー 62, % 64, % 64, % 1,587 ー 55, % 60, % 60, % 4,715 ー Average exchange US$ rate (yen) Euro Foreign currency fluctuation effect on; (compared with the previous same period) Net sales Pre-tax income Approx. 58 billion Approx. 7 billion Approx. 33 billion Approx. 4 billion Approx. 36 billion Approx. 5 billion Note: Forecast of EPS (Diluted-yen) is computed based on the diluted average number of shares outstanding during the nine months ended December 31, Please refer to forward-looking statements on the final page. 9

11 Sales Forecast by Reporting Segment for the Year Ending March 31, 2016 Year ended March 31, 2015 Year ending March 31, 2016 (Forecast) Previous (October 2015) Revised (January 2016) in amount compared with Amount % of net sales Amount % of net sales Amount % of net sales Year ended March 31, 2015 Previous forecast Fine Ceramic Parts Group 90, % 95, % 96, % 5,306 1,000 Semiconductor Parts Group 217, % 222, % 212, % -5,879-10,500 Applied Ceramic Products Group 277, % 252, % 251, % -26,629-1,500 Electronic Device Group 284, % 297, % 290, % 5,855-7,000 Components Business 870, % 867, % 849, % -21,347-18,000 Telecommunications Equipment Group 204, % 188, % 170, % -34,290-18,000 Information Equipment Group 332, % 345, % 340, % 7,404-5,000 Equipment Business 536, % 533, % 510, % -26,886-23,000 Others 172, % 175, % 166, % -6,925-9,000 Adjustments and eliminations -53, % -45, % -45, % 8,622 - Net Sales 1,526, % 1,530, % 1,480, % -46,536-50,000 Please refer to forward-looking statements on the final page. 10

12 Operating Profit Forecast by Reporting Segment for the Year Ending March 31, 2016 Year ended March 31, 2015 Year ending March 31, 2016 (Forecast) Previous (October 2015) Revised (January 2016) in amount compared with Amount % to net sales Amount % to net sales Amount % to net sales Year ended March 31, 2015 Previous forecast Fine Ceramic Parts Group 16, % 16, % 16, % Semiconductor Parts Group 33, % 32, % 27, % -6,971-5,000 Applied Ceramic Products Group 3, % 20, % 18, % 14,841-2,000 Electronic Device Group 34, % 15, % 11, % -22,572-3,200 Components Business 87, % 83, % 72, % -14,836-10,400 Telecommunications Equipment Group -20, , ,800-12,412-5,800 Information Equipment Group 34, % 29, % 23, % -11,569-6,000 Equipment Business 14, % 27, % 15, % ,800 Others 6, % 13, % 10, % 3,152-3,000 Operating Profit 108, % 123, % 98, % -10,841-25,200 Corporate and others 13,021-16,800-37,000-23,979 20,200 Pre-tax income 121, % 140, % 135, % 13,138-5,000 Please refer to forward-looking statements on the final page. 11

13 Appendix Sales by Reporting Segment for First Nine Months of FY3/2016 -Comparison with first nine months of FY3/2015- Amount % of net sales Amount % of net sales Amount % Fine Ceramic Parts Group 66, % 70, % 4, % Semiconductor Parts Group 159, % 165, % 5, % Applied Ceramic Products Group 189, % 177, % -11, % Electronic Device Group 213, % 219, % 6, % Components Business 628, % 632, % 4, % Telecommunications Equipment Group 146, % 124, % -22, % Information Equipment Group 241, % 245, % 3, % Equipment Business Nine months ended December 31, , % 369, % -18, % Others 123, % 122, % % Adjustments and eliminations -37, % -32, % 5,598 - Net sales 1,101, % 1,093, % -8, % 12

14 Appendix Profit by Reporting Segment for First Nine Months of FY3/2016 -Comparison with first nine months of FY3/2015- Nine months ended December 31, Amount % to net sales Amount % to net sales Amount % Fine Ceramic Parts Group 11, % 11, % % Semiconductor Parts Group 24, % 24, % % Applied Ceramic Products Group 9, % 12, % 2, % Electronic Device Group 28, % 3, % -24, % Components Business 73, % 52, % -21, % Telecommunications Equipment Group -3, , Information Equipment Group 25, % 17, % -7, % Equipment Business 22, % 13, % -8, % Others 4, % 11, % 7, % Operating Profit 99, % 77, % -22, % Corporate and Others 14,728-20,261-5, % Pre-tax income 114, % 97, % -17, % Operating profit represents profit from operating activities. 13

15 Forward-Looking Statements Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following: (1) general conditions in the Japanese or global economy; (2) unexpected changes in economic, political and legal conditions in countries where we operate; (3) various export risks which may affect the significant percentage of our revenues derived from overseas sales; (4) the effect of foreign exchange fluctuations on our results of operations; (5) intense competitive pressures to which our products are subject; (6) fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera s production activities; (7) manufacturing delays or defects resulting from outsourcing or internal manufacturing processes; (8) shortages and rising costs of electricity affecting our production and sales activities; (9) the possibility that future initiatives and in-process research and development may not produce the desired results; (10) companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities; (11) inability to secure skilled employees, particularly engineering and technical personnel; (12) insufficient protection of our trade secrets and intellectual property rights including patents; (13) expenses associated with licenses we require to continue to manufacture and sell products; (14) environmental liability and compliance obligations by tightening of environmental laws and regulations; (15) unintentional conflict with laws and regulations or newly enacted laws and regulations; (16) our market or supply chains being affected by terrorism, plague, wars or similar events; (17) earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers; (18) credit risk on trade receivables; (19) fluctuations in the value of, and impairment losses on, securities and other assets held by us; (20) impairment losses on long-lived assets, goodwill and intangible assets; (21) unrealized deferred tax assets and additional liabilities for unrecognized tax benefits; (22) changes in accounting principles; Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.