FORM 6-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

 

For the month of January 2016

 

Commission File Number: 1-07952

 

KYOCERA CORPORATION

 

6, Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F  x    Form 40-F  o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1):   o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7):   o

 

 

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

 

KYOCERA CORPORATION

 

 

 

/s/ SHOICHI AOKI

 

Shoichi Aoki

 

Director,

 

Managing Executive Officer and

 

General Manager of

 

Corporate Financial and Accounting Group

 

 

Date: January 29, 2016

 

 



 

Information furnished on this form:

 

EXHIBITS

 

Exhibit

 

 

Number

 

 

1.

 

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2015

 



 

GRAPHIC

 

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Nine Months Ended December 31, 2015

 

The consolidated financial information is prepared in accordance with accounting principles generally accepted in the United States of America.

 

1. Consolidated Financial Results for the Nine Months Ended December 31, 2015

 

(1) Consolidated results of operations

 

(% of change from previous period)

 

 

Net sales

 

Profit from operations

 

Income before
income taxes

 

Net income attributable to
shareholders of
Kyocera Corporation

 

 

 

Million yen

 

%

 

Million yen

 

%

 

Million yen

 

%

 

Million yen

 

%

 

Nine Months ended December 31, 2015

 

1,093,030

 

(0.8

)

66,020

 

(26.8

)

97,390

 

(15.1

)

59,504

 

(19.6

)

Nine Months ended December 31, 2014

 

1,101,692

 

2.8

 

90,222

 

0.6

 

114,667

 

3.9

 

73,971

 

6.6

 

 

(Note)  Comprehensive income:

159,836 million yen for the nine months ended December 31, 2015, (43.8)% of change from previous period

284,368 million yen for the nine months ended December 31, 2014, (13.1)% of change from previous period

 

 

 

Net income
 attributable to 
shareholders of
Kyocera Corporation
per share - Basic

 

Net income 
attributable to 
shareholders of
Kyocera Corporation
per share - Diluted

 

 

 

Yen

 

Yen

 

Nine Months ended December 31, 2015

 

162.20

 

162.20

 

Nine Months ended December 31, 2014

 

201.63

 

201.63

 

 

(2) Consolidated financial condition

 

 

 

Total assets

 

Total equity

 

Kyocera Corporation
shareholders’ equity

 

Kyocera Corporation
shareholders’ equity
to total assets

 

 

 

Million yen

 

Million yen

 

Million yen

 

%

 

December 31, 2015

 

3,178,037

 

2,424,855

 

2,331,235

 

73.4

 

March 31, 2015

 

3,021,184

 

2,303,623

 

2,215,319

 

73.3

 

 

2. Dividends

 

 

 

Dividends per share

 

 

 

End of
first quarter

 

End of
second quarter

 

End of
third quarter

 

Year-end

 

Annual

 

 

 

Yen

 

Yen

 

Yen

 

Yen

 

Yen

 

Year ended March 31, 2015

 

 

40.00

 

 

60.00

 

100.00

 

Year ending March 31, 2016

 

 

50.00

 

 

50.00

 

100.00

 

 

1



 

3. Consolidated Financial Forecasts for the Year Ending March 31, 2016

 

(% of change from previous year)

 

 

Net sales

 

Profit from
operations

 

Income before
income taxes

 

Net income 
attributable to 
shareholders of
Kyocera Corporation

 

Net income 
attributable to 
shareholders of
Kyocera Corporation
per share

 

 

 

Million yen

 

%

 

Million yen

 

%

 

Million yen

 

%

 

Million yen

 

%

 

Yen

 

Year ending March 31, 2016

 

1,480,000

 

(3.0

)

85,000

 

(9.0

)

135,000

 

10.8

 

90,000

 

(22.3

)

245.33

 

 

(Note) Forecast of earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares outstanding during the nine months ended December 31, 2015.

 

(Notes)

 

(1) Increase or decrease in significant subsidiaries during the nine months ended December 31, 2015: None

 

(2) Adoption of concise quarterly accounting method or procedure: None

 

(3) Changes in accounting policies:

 

(i)        Changes due to adoption of new accounting standards: Yes

(ii)     Changes due to other than adoption of new accounting standards: Yes

 

For detailed information, please refer to the accompanying “3. OTHER INFORMATION” on page 15.

 

(4) Number of shares (common stock):

 

(i)   Number of shares issued:

 

377,618,580 shares at December 31, 2015

377,618,580 shares at March 31, 2015

 

(ii)  Number of treasury stock:

 

10,760,387 shares at December 31, 2015

10,757,224 shares at March 31, 2015

 

(iii) Average number of shares outstanding:

 

366,859,651 shares for the nine months ended December 31, 2015

366,864,937 shares for the nine months ended December 31, 2014

 

Presentation of Situation of Review Procedure

 

The consolidated financial information included in this report is out of scope of the review procedure under the Financial Instruments and Exchange Law of Japan. The review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.

 

Instruction for Forecasts and Other Notes

 

Cautionary Statement for Forecasts:

 

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 10.

 

2



 

Accompanying Information

 

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

 

(1) Business Results for the Nine Months Ended December 31, 2015

 

Economic Situation and Business Environment

 

During the nine months ended December 31, 2015 (“the nine months”), the Japanese economy showed a moderate recovery trend due to an improvement in corporate earnings and an increase in private capital investment. Overseas, the U.S. economy expanded primarily on the back of an increase in personal consumption, while in contrast growth in the Chinese economy weakened and the European economy stagnated.

 

With regard to the principal markets for Kyocera Corporation and its subsidiaries (“Kyocera Group” or “Kyocera”), the automotive market expanded, mainly in the United States and China. Demand for smartphones also grew steadily in the digital consumer equipment market.

 

Consolidated Financial Results

 

Sales of components for smartphones, industrial equipment and automotive-related markets increased steadily. However, a decline in sales in the Telecommunications Equipment Group and the Applied Ceramic Products Group, which includes the solar energy business, resulted in consolidated net sales for the nine months of ¥1,093,030 million, down ¥8,662 million, or 0.8%, compared with the nine months ended December 31, 2014 (“the previous nine months”).

 

Profit declined due primarily to the recording of charges of approximately ¥23 billion, including an impairment of goodwill in the Electronic Device Group and lower profit in the Information Equipment Group due primarily to the impact of foreign exchange fluctuations. As a result, the nine months profit from operations decreased by ¥24,202 million, or 26.8%, to ¥66,020 million, income before income taxes decreased by ¥17,277 million, or 15.1%, to ¥97,390 million and net income attributable to shareholders of Kyocera Corporation decreased by ¥14,467 million, or 19.6%, to ¥59,504 million, compared with the previous nine months.

 

Average foreign currency exchange rates for the nine months were ¥122 to the U.S. dollar, marking depreciation of ¥15 (approximately 14%), and ¥134 to the Euro, marking appreciation of ¥6 (approximately 4%) in comparison with the previous nine months.

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

 

 

(Yen in millions, except exchange rates)

 

Net sales

 

¥

1,101,692

 

100.0

 

¥

1,093,030

 

100.0

 

¥

(8,662

)

(0.8

)

Profit from operations

 

90,222

 

8.2

 

66,020

 

6.0

 

(24,202

)

(26.8

)

Income before income taxes

 

114,667

 

10.4

 

97,390

 

8.9

 

(17,277

)

(15.1

)

Net income attributable to shareholders of Kyocera Corporation

 

73,971

 

6.7

 

59,504

 

5.4

 

(14,467

)

(19.6

)

Average US$ exchange rate

 

107

 

 

122

 

 

 

 

Average Euro exchange rate

 

140

 

 

134

 

 

 

 

 

3



 

Consolidated Results by Reporting Segment

 

1) Fine Ceramic Parts Group

 

Sales and operating profit in this reporting segment increased compared with the previous nine months due primarily to growth in sales of components for industrial machinery such as semiconductor processing equipment and in sales of automotive components such as camera modules.

 

2) Semiconductor Parts Group

 

Sales in this reporting segment increased compared with the previous nine months due to an increase in sales of packages and substrates for the communications market, particularly for smartphones, and of packages for LEDs for automotive-related markets. Operating profit, however, decreased due mainly to the impact of a decline in product prices.

 

3) Applied Ceramic Products Group

 

Sales in this reporting segment decreased compared with the previous nine months due to a decline in sales in the solar energy business in Japan, which more than offset growth in sales in the cutting tool business, primarily for automotive-related markets. Operating profit, however, increased compared with the previous nine months due mainly to efforts to reduce costs in the solar energy business.

 

4) Electronic Device Group

 

Sales in this reporting segment increased compared with the previous nine months due primarily to growth in sales of capacitors for smartphones and printing devices for industrial equipment as well as to the contribution of sales from Nihon Inter Electronics Corporation, which joined the Kyocera Group in September 2015. Operating profit, however, decreased due mainly to the recording of charges, including an impairment of goodwill.

 

5) Telecommunications Equipment Group

 

Sales of mobile phone handsets with exceptional damage and water resistance grew steadily. However, sales and operating profit in this reporting segment decreased compared with the previous nine months due to a decline in sales of PHS-related products and low-end handsets and to decreased number of new model introductions.

 

6) Information Equipment Group

 

Sales in this reporting segment increased compared with the previous nine months due to growth in sales volume of equipment as result of active efforts to expand sales. On the other hand, operating profit decreased compared with the previous nine months due to increased raw material costs reflecting the impact of foreign currency exchange rate fluctuations.

 

7) Others

 

Sales in this reporting segment remained on par with the previous nine months. On the other hand, operating profit increased compared with the previous nine months due mainly to gains on a sale of assets.

 

4



 

Net Sales by Reporting Segment

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

 

 

(Yen in millions)

 

Fine Ceramic Parts Group

 

¥

66,128

 

6.0

 

¥

70,342

 

6.4

 

¥

4,214

 

6.4

 

Semiconductor Parts Group

 

159,561

 

14.5

 

165,032

 

15.1

 

5,471

 

3.4

 

Applied Ceramic Products Group

 

189,333

 

17.2

 

177,763

 

16.3

 

(11,570

)

(6.1

)

Electronic Device Group

 

213,050

 

19.3

 

219,780

 

20.1

 

6,730

 

3.2

 

Total Components Business

 

628,072

 

57.0

 

632,917

 

57.9

 

4,845

 

0.8

 

Telecommunications Equipment Group

 

146,346

 

13.3

 

124,178

 

11.4

 

(22,168

)

(15.1

)

Information Equipment Group

 

241,744

 

21.9

 

245,375

 

22.4

 

3,631

 

1.5

 

Total Equipment Business

 

388,090

 

35.2

 

369,553

 

33.8

 

(18,537

)

(4.8

)

Others

 

123,176

 

11.2

 

122,608

 

11.2

 

(568

)

(0.5

)

Adjustments and eliminations

 

(37,646

)

(3.4

)

(32,048

)

(2.9

)

5,598

 

 

Net sales

 

¥

1,101,692

 

100.0

 

¥

1,093,030

 

100.0

 

¥

(8,662

)

(0.8

)

 

Operating Profit (Loss) by Reporting Segment

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

%*

 

Amount

 

%*

 

Amount

 

%

 

 

 

(Yen in millions)

 

Fine Ceramic Parts Group

 

¥

11,167

 

16.9

 

¥

11,860

 

16.9

 

¥

693

 

6.2

 

Semiconductor Parts Group

 

24,617

 

15.4

 

24,114

 

14.6

 

(503

)

(2.0

)

Applied Ceramic Products Group

 

9,570

 

5.1

 

12,498

 

7.0

 

2,928

 

30.6

 

Electronic Device Group

 

28,281

 

13.3

 

3,784

 

1.7

 

(24,497

)

(86.6

)

Total Components Business

 

73,635

 

11.7

 

52,256

 

8.3

 

(21,379

)

(29.0

)

Telecommunications Equipment Group

 

(3,223

)

 

(3,945

)

 

(722

)

 

Information Equipment Group

 

25,432

 

10.5

 

17,484

 

7.1

 

(7,948

)

(31.3

)

Total Equipment Business

 

22,209

 

5.7

 

13,539

 

3.7

 

(8,670

)

(39.0

)

Others

 

4,095

 

3.3

 

11,334

 

9.2

 

7,239

 

176.8

 

Operating profit

 

99,939

 

9.1

 

77,129

 

7.1

 

(22,810

)

(22.8

)

Corporate gains and equity in earnings of affiliates and an unconsolidated subsidiary

 

15,233

 

 

20,250

 

 

5,017

 

32.9

 

Adjustments and eliminations

 

(505

)

 

11

 

 

516

 

 

Income before income taxes

 

¥

114,667

 

10.4

 

¥

97,390

 

8.9

 

¥

(17,277

)

(15.1

)

 

* % to net sales of each corresponding segment

 

5



 

Net Sales by Geographic Area

 

1) Japan

Sales in Japan decreased compared with the previous nine months due mainly to a decline in sales in the solar energy business.

 

2) Asia

Sales in Asia increased compared with the previous nine months due primarily to an increase in sales of components business such as the Semiconductor Parts Group and the Electronic Device Group and to the effect of the yen’s depreciation.

 

3) United States of America

Sales in the United States of America increased compared with the previous nine months due to an increase in sales in the solar energy business and the Information Equipment Group as well as to the effect of the yen’s depreciation against the U.S. dollar.

 

4) Europe

Sales in Europe decreased compared with the previous nine months due to a decline in sales in the Information Equipment Group and to the effect of the yen’s appreciation against the Euro.

 

5) Others

Sales in Others decreased compared with the previous nine months due mainly to a decrease in sales in the solar energy business and the Information Equipment Group.

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

 

 

(Yen in millions)

 

Japan

 

¥

447,300

 

40.6

 

¥

432,440

 

39.6

 

¥

(14,860

)

(3.3

)

Asia

 

224,090

 

20.3

 

237,453

 

21.7

 

13,363

 

6.0

 

United States of America

 

182,466

 

16.6

 

191,704

 

17.5

 

9,238

 

5.1

 

Europe

 

195,994

 

17.8

 

185,550

 

17.0

 

(10,444

)

(5.3

)

Others

 

51,842

 

4.7

 

45,883

 

4.2

 

(5,959

)

(11.5

)

Net sales

 

¥

1,101,692

 

100.0

 

¥

1,093,030

 

100.0

 

¥

(8,662

)

(0.8

)

 

6



 

(2) Financial Condition

 

Consolidated Cash Flows

 

Cash and cash equivalents at December 31, 2015 increased by ¥102 million to ¥351,465 million from ¥351,363 million at March 31, 2015.

 

1) Cash flows from operating activities

Net cash provided by operating activities for the nine months increased by ¥45,299 million to ¥115,694 million from ¥70,395 million for the previous nine months. Although net income decreased, cash flow adjustments related to inventories and notes and accounts payable exceeded cash flow adjustment related to other current liabilities including accrued expenses, which caused the increase in net cash provided by operating activities.

 

2) Cash flows from investing activities

Net cash used in investing activities for the nine months decreased by ¥7,307 million to ¥65,763 million from ¥73,070 million for the previous nine months. This was due mainly to a decrease in purchase of securities which was partly offset by a decrease in maturities of securities and an increase in acquisition of time deposits.

 

3) Cash flows from financing activities

Net cash used in financing activities for the nine months increased by ¥10,865 million to ¥47,644 million from ¥36,779 million for the previous nine months. This was due mainly to an increase in dividends paid.

 

 

 

Nine months ended December 31,

 

 

 

2014

 

2015

 

 

 

(Yen in millions)

 

Cash flows from operating activities

 

¥

70,395

 

¥

115,694

 

Cash flows from investing activities

 

(73,070

)

(65,763

)

Cash flows from financing activities

 

(36,779

)

(47,644

)

Effect of exchange rate changes on cash and cash equivalents

 

23,204

 

(2,185

)

Net increased (decreased) in cash and cash equivalents

 

(16,250

)

102

 

Cash and cash equivalents at beginning of period

 

335,174

 

351,363

 

Cash and cash equivalents at end of period

 

¥

318,924

 

¥

351,465

 

 

7



 

(3) Consolidated Financial Forecasts for the Year Ending March 31, 2016

 

During the three months ending March 31, 2016 (“the fourth quarter”), sales of components for semiconductor processing equipment and automobiles are expected to increase steadily. Business environment in the fourth quarter, however, is expected to be tougher than forecast in October 2015 affected by the slow-down of the Chinese economy and the effect of production adjustment for smartphones.

 

Taking this situation into consideration, Kyocera has revised its full-year forecast for the year ending March 31, 2016 as set forth below.  In addition, forecasts for reporting segments have also been revised as set forth on the following page.

 

Kyocera aims to achieve the results set forth in its full-year financial forecasts by securing orders in the information and communication, industrial machinery, automotive-related and environment and energy markets, and by comprehensively reducing costs through leveraging of the collective capabilities of the Kyocera Group.

 

 

 

Results for

 

Forecasts for the year ending
March 31, 2016 announced on

 

Increase

 

 

 

the year ended
March 31, 2015

 

October 29, 2015
(Previous)

 

January 29, 2016
(Revised)

 

(Decrease)
to Results

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

%

 

 

 

(Yen in millions, except exchange rates)

 

Net sales

 

¥

1,526,536

 

100.0

 

¥

1,530,000

 

100.0

 

¥

1,480,000

 

100.0

 

(3.0

)

Profit from operations

 

93,428

 

6.1

 

110,000

 

7.2

 

85,000

 

5.7

 

(9.0

)

Income before income taxes

 

121,862

 

8.0

 

140,000

 

9.2

 

135,000

 

9.1

 

10.8

 

Net income attributable to shareholders of Kyocera Corporation

 

115,875

 

7.6

 

85,000

 

5.6

 

90,000

 

6.1

 

(22.3

)

Average US$ exchange rate

 

110

 

 

120

 

 

121

 

 

 

Average Euro exchange rate

 

139

 

 

133

 

 

133

 

 

 

 

8



 

Net Sales by Reporting Segment

 

 

 

Results for

 

Forecasts for the year ending
March 31, 2016 announced on

 

Increase

 

 

 

the year ended
March 31, 2015

 

October 29, 2015
(Previous)

 

January 29, 2016
(Revised)

 

(Decrease)
to Results

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

%

 

 

 

(Yen in millions)

 

Fine Ceramic Parts Group

 

¥

90,694

 

5.9

 

¥

95,000

 

6.2

 

¥

96,000

 

6.5

 

5.9

 

Semiconductor Parts Group

 

217,879

 

14.3

 

222,500

 

14.6

 

212,000

 

14.3

 

(2.7

)

Applied Ceramic Products Group

 

277,629

 

18.2

 

252,500

 

16.5

 

251,000

 

17.0

 

(9.6

)

Electronic Device Group

 

284,145

 

18.6

 

297,000

 

19.4

 

290,000

 

19.6

 

2.1

 

Total Components Business

 

870,347

 

57.0

 

867,000

 

56.7

 

849,000

 

57.4

 

(2.5

)

Telecommunications Equipment Group

 

204,290

 

13.4

 

188,000

 

12.3

 

170,000

 

11.5

 

(16.8

)

Information Equipment Group

 

332,596

 

21.8

 

345,000

 

22.5

 

340,000

 

22.9

 

2.2

 

Total Equipment Business

 

536,886

 

35.2

 

533,000

 

34.8

 

510,000

 

34.4

 

(5.0

)

Others

 

172,925

 

11.3

 

175,000

 

11.4

 

166,000

 

11.2

 

(4.0

)

Adjustments and eliminations

 

(53,622

)

(3.5

)

(45,000

)

(2.9

)

(45,000

)

(3.0

)

 

Net sales

 

¥

1,526,536

 

100.0

 

¥

1,530,000

 

100.0

 

¥

1,480,000

 

100.0

 

(3.0

)

 

Operating Profit (Loss) by Reporting Segment

 

 

 

Results for

 

Forecasts for the year ending
March 31, 2016 announced on

 

Increase

 

 

 

the year ended
March 31, 2015

 

October 29, 2015
(Previous)

 

January 29, 2016
(Revised)

 

(Decrease)
to Results

 

 

 

Amount

 

%*

 

Amount

 

%*

 

Amount

 

%*

 

%

 

 

 

(Yen in millions)

 

Fine Ceramic Parts Group

 

¥

16,134

 

17.8

 

¥

16,200

 

17.1

 

¥

16,000

 

16.7

 

(0.8

)

Semiconductor Parts Group

 

33,971

 

15.6

 

32,000

 

14.4

 

27,000

 

12.7

 

(20.5

)

Applied Ceramic Products Group

 

3,159

 

1.1

 

20,000

 

7.9

 

18,000

 

7.2

 

469.8

 

Electronic Device Group

 

34,372

 

12.1

 

15,000

 

5.1

 

11,800

 

4.1

 

(65.7

)

Total Components Business

 

87,636

 

10.1

 

83,200

 

9.6

 

72,800

 

8.6

 

(16.9

)

Telecommunications Equipment Group

 

(20,212

)

 

(2,000

)

 

(7,800

)

 

 

Information Equipment Group

 

34,569

 

10.4

 

29,000

 

8.4

 

23,000

 

6.8

 

(33.5

)

Total Equipment Business

 

14,357

 

2.7

 

27,000

 

5.1

 

15,200

 

3.0

 

5.9

 

Others

 

6,848

 

4.0

 

13,000

 

7.4

 

10,000

 

6.0

 

46.0

 

Operating profit

 

108,841

 

7.1

 

123,200

 

8.1

 

98,000

 

6.6

 

(10.0

)

Corporate and others

 

13,021

 

 

16,800

 

 

37,000

 

 

184.2

 

Income before income taxes

 

¥

121,862

 

8.0

 

¥

140,000

 

9.2

 

¥

135,000

 

9.1

 

10.8

 

* % to net sales of each corresponding segment

 

9



 

Note: 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; and

 

 

(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.

 

10



 

2. CONSOLIDATED FINANCIAL STATEMENTS

 

(1) Consolidated Balance Sheets (Unaudited)

 

 

 

March 31, 2015

 

December 31, 2015

 

Increase

 

 

 

Amount

 

%

 

Amount

 

%

 

(Decrease)

 

 

 

(Yen in millions)

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

¥

351,363

 

 

 

¥

351,465

 

 

 

¥

102

 

Short-term investments in debt and equity securities

 

95,237

 

 

 

106,756

 

 

 

11,519

 

Other short-term investments

 

184,358

 

 

 

174,012

 

 

 

(10,346

)

Trade notes receivables

 

19,130

 

 

 

22,412

 

 

 

3,282

 

Trade accounts receivables

 

299,412

 

 

 

276,252

 

 

 

(23,160

)

Less allowances for doubtful accounts and sales returns

 

(5,378

)

 

 

(5,583

)

 

 

(205

)

Inventories

 

354,499

 

 

 

366,728

 

 

 

12,229

 

Other current assets

 

158,926

 

 

 

135,612

 

 

 

(23,314

)

Total current assets

 

1,457,547

 

48.2

 

1,427,654

 

44.9

 

(29,893

)

Non-current assets:

 

 

 

 

 

 

 

 

 

 

 

Investments and advances:

 

 

 

 

 

 

 

 

 

 

 

Long-term investments in debt and equity securities

 

1,051,638

 

 

 

1,203,550

 

 

 

151,912

 

Other long-term investments

 

20,402

 

 

 

24,247

 

 

 

3,845

 

Total investments and advances

 

1,072,040

 

35.5

 

1,227,797

 

38.7

 

155,757

 

Property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

Land

 

59,590

 

 

 

61,094

 

 

 

1,504

 

Buildings

 

350,354

 

 

 

351,161

 

 

 

807

 

Machinery and equipment

 

846,391

 

 

 

855,297

 

 

 

8,906

 

Construction in progress

 

11,015

 

 

 

13,848

 

 

 

2,833

 

Less accumulated depreciation

 

(1,005,859

)

 

 

(1,013,702

)

 

 

(7,843

)

Total property, plant and equipment

 

261,491

 

8.6

 

267,698

 

8.4

 

6,207

 

Goodwill

 

102,167

 

3.4

 

107,732

 

3.4

 

5,565

 

Intangible assets

 

56,615

 

1.9

 

58,198

 

1.8

 

1,583

 

Other assets

 

71,324

 

2.4

 

88,958

 

2.8

 

17,634

 

Total non-current assets

 

1,563,637

 

51.8

 

1,750,383

 

55.1

 

186,746

 

Total assets

 

¥

3,021,184

 

100.0

 

¥

3,178,037

 

100.0

 

¥

156,853

 

 

11



 

 

 

March 31, 2015

 

December 31, 2015

 

Increase

 

 

 

Amount

 

%

 

Amount

 

%

 

(Decrease)

 

 

 

(Yen in millions)

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

¥

4,129

 

 

 

¥

5,921

 

 

 

¥

1,792

 

Current portion of long-term debt

 

9,441

 

 

 

10,055

 

 

 

614

 

Trade notes and accounts payable

 

119,654

 

 

 

121,276

 

 

 

1,622

 

Other notes and accounts payable

 

59,613

 

 

 

83,255

 

 

 

23,642

 

Accrued payroll and bonus

 

59,454

 

 

 

50,336

 

 

 

(9,118

)

Accrued income taxes

 

17,316

 

 

 

14,662

 

 

 

(2,654

)

Other accrued liabilities

 

53,305

 

 

 

40,505

 

 

 

(12,800

)

Other current liabilities

 

33,339

 

 

 

35,599

 

 

 

2,260

 

Total current liabilities

 

356,251

 

11.8

 

361,609

 

11.4

 

5,358

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

17,881

 

 

 

18,756

 

 

 

875

 

Accrued pension and severance liabilities

 

34,764

 

 

 

33,808

 

 

 

(956

)

Deferred income taxes

 

292,454

 

 

 

320,264

 

 

 

27,810

 

Other non-current liabilities

 

16,211

 

 

 

18,745

 

 

 

2,534

 

Total non-current liabilities

 

361,310

 

12.0

 

391,573

 

12.3

 

30,263

 

Total liabilities

 

717,561

 

23.8

 

753,182

 

23.7

 

35,621

 

Kyocera Corporation shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

115,703

 

 

 

115,703

 

 

 

 

Additional paid-in capital

 

162,695

 

 

 

162,827

 

 

 

132

 

Retained earnings

 

1,502,310

 

 

 

1,521,459

 

 

 

19,149

 

Accumulated other comprehensive income

 

469,673

 

 

 

566,328

 

 

 

96,655

 

Common stock in treasury, at cost

 

(35,062

)

 

 

(35,082

)

 

 

(20

)

Total Kyocera Corporation shareholders’ equity

 

2,215,319

 

73.3

 

2,331,235

 

73.4

 

115,916

 

Noncontrolling interests

 

88,304

 

2.9

 

93,620

 

2.9

 

5,316

 

Total equity

 

2,303,623

 

76.2

 

2,424,855

 

76.3

 

121,232

 

Total liabilities and equity

 

¥

3,021,184

 

100.0

 

¥

3,178,037

 

100.0

 

¥

156,853

 

 

Note: Accumulated other comprehensive income is as follows:

 

 

 

March 31, 2015

 

December 31, 2015

 

Increase
(Decrease)

 

 

 

(Yen in millions)

 

Net unrealized gains on securities

 

¥

467,841

 

¥

570,414

 

¥

102,573

 

Net unrealized losses on derivative financial instruments

 

(372

)

(447

)

(75

)

Pension adjustments

 

(28,452

)

(29,446

)

(994

)

Foreign currency translation adjustments

 

30,656

 

25,807

 

(4,849

)

Total

 

¥

469,673

 

¥

566,328

 

¥

96,655

 

 

12



 

(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)

 

Consolidated Statements of Income

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

 

 

(Yen in millions and shares in thousands, except per share amounts)

 

Net sales

 

¥

1,101,692

 

100.0

 

¥

1,093,030

 

100.0

 

¥

(8,662

)

(0.8

)

Cost of sales

 

809,547

 

73.5

 

803,743

 

73.5

 

(5,804

)

(0.7

)

Gross profit

 

292,145

 

26.5

 

289,287

 

26.5

 

(2,858

)

(1.0

)

Selling, general and administrative expenses

 

201,923

 

18.3

 

209,124

 

19.2

 

7,201

 

3.6

 

Losses on impairment of goodwill

 

 

 

14,143

 

1.3

 

14,143

 

 

Profit from operations

 

90,222

 

8.2

 

66,020

 

6.0

 

(24,202

)

(26.8

)

Other income (expenses) :

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

21,653

 

2.0

 

27,260

 

2.5

 

5,607

 

25.9

 

Interest expense

 

(1,303

)

(0.1

)

(1,098

)

(0.1

)

205

 

 

Foreign currency transaction gains, net

 

2,607

 

0.2

 

3,343

 

0.3

 

736

 

28.2

 

Other, net

 

1,488

 

0.1

 

1,865

 

0.2

 

377

 

25.3

 

Total other income (expenses)

 

24,445

 

2.2

 

31,370

 

2.9

 

6,925

 

28.3

 

Income before income taxes

 

114,667

 

10.4

 

97,390

 

8.9

 

(17,277

)

(15.1

)

Income taxes

 

35,542

 

3.2

 

34,362

 

3.1

 

(1,180

)

(3.3

)

Net income

 

79,125

 

7.2

 

63,028

 

5.8

 

(16,097

)

(20.3

)

Net income attributable to noncontrolling interests

 

(5,154

)

(0.5

)

(3,524

)

(0.4

)

1,630

 

 

Net income attributable to shareholders of
Kyocera Corporation

 

¥

73,971

 

6.7

 

¥

59,504

 

5.4

 

¥

(14,467

)

(19.6

)

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to shareholders of
Kyocera Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

¥

201.63

 

 

 

¥

162.20

 

 

 

 

 

 

 

Diluted

 

201.63

 

 

 

162.20

 

 

 

 

 

 

 

Average number of shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

366,865

 

 

 

366,860

 

 

 

 

 

 

 

Diluted

 

366,865

 

 

 

366,860

 

 

 

 

 

 

 

 

Note:

Basic earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares of stock outstanding during each period.

 

13



 

Consolidated Statements of Comprehensive Income

 

 

 

Nine months ended December 31,

 

Increase

 

 

 

2014

 

2015

 

(Decrease)

 

 

 

Amount

 

Amount

 

Amount

 

 

 

(Yen in millions)

 

Net income

 

¥

79,125

 

¥

63,028

 

¥

(16,097

)

Other comprehensive income (loss) — net of taxes

 

 

 

 

 

 

 

Net unrealized gains on securities

 

132,563

 

102,450

 

(30,113

)

Net unrealized losses on derivative financial instruments

 

(281

)

(86

)

195

 

Pension adjustments

 

(1,114

)

(1,007

)

107

 

Foreign currency translation adjustments

 

74,075

 

(4,549

)

(78,624

)

Total other comprehensive income (loss)

 

205,243

 

96,808

 

(108,435

)

Comprehensive income

 

284,368

 

159,836

 

(124,532

)

Comprehensive income attributable to noncontrolling interests

 

(15,125

)

(3,677

)

11,448

 

Comprehensive income attributable to shareholders of Kyocera Corporation

 

¥

269,243

 

¥

156,159

 

¥

(113,084

)

 

(3) Notes to the consolidated financial statements

 

Cautionary Statement for Premise of a Going Concern

 

None.

 

Cautionary Statement for Significant Changes in Equity

 

None.

 

14



 

3. OTHER INFORMATION

 

Changes in accounting policies

 

Recently Adopted Accounting Standards

 

On April 1, 2015, Kyocera adopted Accounting Standards Update (ASU) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This accounting standard changes the requirements for reporting discontinued operations in ASC 205-20, “Presentation of Financial StatementsDiscontinued Operations.” A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This accounting standard also requires an entity to provide disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This accounting standard requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. On December 31, 2015, Kyocera early adopted this accounting standard. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

In December 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” To simplify the presentation of deferred income taxes, this accounting standard changes require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. On December 31, 2015, Kyocera early adopted this accounting standard. For the adoption of this accounting standard, Kyocera did not adjust prior period’s financial statement retrospectively.

 

15


 

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