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
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 yens 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 yens 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 yens 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 Kyoceras 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.
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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 entitys 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 Kyoceras 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 Kyoceras 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 periods financial statement retrospectively.
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