FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April 2009
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
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):
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):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-
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 | ||
Managing Executive Officer | ||
General Manager of Corporate Financial & Accounting Group | ||
Date: April 27, 2009 |
Information furnished on this form :
Exhibit Number |
||
1. | Consolidated and Non-consolidated Financial Results for the Year Ended March 31, 2009 |
Consolidated Financial Results of Kyocera Corporation and its Subsidiaries
for the Year Ended March 31, 2009
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.
1. Consolidated financial information for the year ended March 31, 2009 :
(1) Consolidated results of operations :
(Japanese yen) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Net sales |
¥ | 1,290,436 million | ¥ | 1,128,586 million | ||||
% change from the previous period |
0.5 | % | (12.5 | )% | ||||
Profit from operations |
152,420 million | 43,419 million | ||||||
% change from the previous period |
12.8 | % | (71.5 | )% | ||||
Income before income taxes |
174,842 million | 55,982 million | ||||||
% change from the previous period |
11.7 | % | (68.0 | )% | ||||
Net income |
107,244 million | 29,506 million | ||||||
% change from the previous period |
0.7 | % | (72.5 | )% | ||||
Earnings per share : |
||||||||
Basic |
¥566.58 | ¥157.27 | ||||||
Diluted |
565.80 | 157.23 | ||||||
Return on equity |
7.2 | % | 2.1 | % | ||||
Income before income taxes to total assets |
8.5 | % | 3.0 | % | ||||
Profit from operations to net sales |
11.8 | % | 3.8 | % |
Note :
Equity in earnings of affiliates and unconsolidated subsidiaries :
Year ended March 31, 2009 : |
¥ | 6,460 million | |||
Year ended March 31, 2008 : |
¥ | 6,091 million |
(2) Consolidated financial position :
(Japanese yen) | ||||||||
March 31, | ||||||||
2008 | 2009 | |||||||
Total assets |
¥ | 1,976,746 million | ¥ | 1,773,802 million | ||||
Stockholders equity |
1,451,165 million | 1,323,663 million | ||||||
Stockholders equity to total assets |
73.4 | % | 74.6 | % | ||||
Stockholders equity per share |
¥7,659.72 | ¥7,212.32 |
(3) Consolidated cash flows :
(Japanese yen) | ||||||
March 31, | ||||||
2008 | 2009 | |||||
Cash flows from operating activities |
¥ | 196,935 million | ¥ | 99,664 million | ||
Cash flows from investing activities |
14,894 million | (201,957) million | ||||
Cash flows from financing activities |
(28,071) million | (64,287) million | ||||
Cash and cash equivalents at end of year |
¥ | 447,586 million | ¥ | 269,247 million |
1
2. Dividends :
(Japanese yen) | |||||||||
Years ended March 31, | Year ending March 31, | ||||||||
2008 | 2009 | 2010 | |||||||
Interim dividends per share |
¥60 | ¥60 | | ||||||
Year-end dividends per share |
60 | 60 | | ||||||
Annual dividends per share |
120 | 120 | ¥120 | ||||||
Annual aggregate amount of dividends paid |
¥22,732 million | ¥22,399 million | | ||||||
Dividends to net income |
21.2 | % | 76.3 | % | 66.2 | % | |||
Dividends to stockholders equity |
1.5 | % | 1.6 | % | |
Note :
Dividends per share for the year ending March 31, 2010 are forecasted to be 120 yen on an annual basis.
3. Consolidated financial forecast for the year ending March 31, 2010 :
(Japanese yen) | |||||
Year ending March 31, 2010 | |||||
Net sales |
¥ 1,040,000 million | ||||
% change from the previous year |
(7.8 | )% | |||
Profit from operations |
44,000 million | ||||
% change from the previous year |
1.3 | % | |||
Income before income taxes |
57,000 million | ||||
% change from the previous year |
1.8 | % |
Note :
Net income attributable to shareholders of KYOCERA CORPORATION | : | ¥34,000 million | ||
Earnings per share attributable to shareholders of KYOCERA CORPORATION | : | ¥181.18 |
Net income attributable to shareholders of KYOCERA CORPORATION is computed in the same manner as for net income for the year ended March 31, 2009.
Earnings per share attributable to shareholders of KYOCERA CORPORATION is computed based on Statement of Financial Accounting Standards No.128.
Forecast of earnings per share attributable to shareholders of KYOCERA CORPORATION is computed based on the diluted average number of shares outstanding during the year ended March 31, 2009.
2
4. Others :
(1) Increase or decrease in significant subsidiaries during the period :
Number of company | Name of company | |||
Increase |
1 | KYOCERA TELECOM EQUIPMENT (MALAYSIA) SDN. BHD. | ||
Decrease |
0 | |
Please refer to the accompanying BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS on page 27.
(2) Change in accounting policies :
There were changes in accounting policies due to new accounting standards.
Please refer to the accompanying BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS on page 27.
(3) Number of shares (common stock) :
March 31, | ||||
2008 | 2009 | |||
Number of shares issued |
191,309,290 | 191,309,290 | ||
Number of shares in treasury |
1,855,119 | 7,781,256 | ||
Number of shares outstanding (average) |
189,283,237 | 187,618,426 |
(Reference) Outline of Non-Consolidated Results for Kyocera Corporation
1. Results for the year ended March 31, 2009 :
(1) Results of operations :
(Japanese yen) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Net sales |
¥ | 539,320 million | ¥ | 521,993 million | ||||
% change from the previous year |
1.5 | % | (3.2 | )% | ||||
Profit from operations |
48,551 million | (8,536) million | ||||||
% change from the previous year |
(1.8 | )% | | |||||
Recurring profit |
90,211 million | 28,992 million | ||||||
% change from the previous year |
22.4 | % | (67.9 | )% | ||||
Net income |
67,859 million | 14,023 million | ||||||
% change from the previous year |
9.4 | % | (79.3 | )% | ||||
Earnings per share : |
||||||||
Basic |
¥358.51 | ¥74.74 | ||||||
Diluted |
¥358.01 | ¥74.73 | ||||||
(2) Financial Position :
(Japanese yen) | ||||||||
March 31, | ||||||||
2008 | 2009 | |||||||
Total assets |
¥ | 1,465,960 million | ¥ | 1,278,075 million | ||||
Net assets |
1,219,415 million | 1,118,614 million | ||||||
Net assets to total assets |
83.2 | % | 87.5 | % | ||||
Net assets per share |
6,436.46 | 6,095.06 |
With regard to forecasts set forth above, please refer to the accompanying Forward-Looking Statements on page 14.
3
BUSINESS RESULTS
1. Analysis of Business Results
[Business Results for the Year Ended March 31, 2009 (fiscal 2009)]
(1) Economic Situation and Business Environment
In the fiscal 2009, the impact of the financial crisis triggered in the United States affected the real economy, resulting in rapid deceleration in the global economy commencing the second half of fiscal 2009. In the Japanese economy, exports decreased significantly due to the slowdown in overseas economies and appreciation of the yen against the U.S. dollar and Euro, while there was a significant decline in corporate production activity. As a result, the recession in the Japanese economy has become evident rapidly.
Due to the impact of the slumping global consumer spending, the digital consumer equipment market, which is a principal market for Kyocera Corporation and its consolidated subsidiaries (Kyocera Group or Kyocera), posted sluggish growth in sales of mobile phone handsets, personal computers (PCs), flat panel TV sets and digital cameras. In addition, the business environment has changed dramatically commencing the second half of fiscal 2009 due to the sharp decline in corporate information technology investment. As a result, sales for both components business and equipment business decreased compared with the previous fiscal year ended March 31, 2008 (fiscal 2008). The solar energy market expanded worldwide, due in part to subsidies from national governments despite harsh environment.
(2) Consolidated Financial Results
Consolidated net sales for fiscal 2009 amounted to ¥1,128,586 million, a decrease of 12.5% compared with fiscal 2008, due primarily to the impact of a decrease in demand affected by deteriorating business environment and to appreciation of the yen.
Amid such a harsh business environment, Kyocera Group continued to pursue synergies by effectively utilizing management resources and to aggressively release new products, while also promoting comprehensive Group-wide cost reductions. Nonetheless, profit from operations for fiscal 2009 decreased by 71.5% compared with fiscal 2008 to ¥43,419 million due mainly to a decrease in demand and product selling price erosion. Income before income taxes decreased by 68.0% to ¥55,982 million due to the decrease in profit from operations. Net income decreased by 72.5% to ¥29,506 million.
Average exchange rates for fiscal 2009 were ¥101 to the U.S dollar and ¥143 to the Euro, marking appreciation of ¥13 and ¥19, respectively, compared with fiscal 2008. As a result, net sales and income before income taxes after translation into the yen for fiscal 2009 were, for calculation purposes, pushed down by approximately ¥91.0 billion and ¥23.0 billion, respectively.
4
(Yen in millions, except per share amounts and exchange rate) | |||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||
2008 | 2009 | ||||||||||||
Amount | % | Amount | % | ||||||||||
Net sales |
¥ | 1,290,436 | 100.0 | ¥ | 1,128,586 | 100.0 | (12.5 | ) | |||||
Profit from operations |
¥ | 152,420 | 11.8 | ¥ | 43,419 | 3.8 | (71.5 | ) | |||||
Income before income taxes |
¥ | 174,842 | 13.5 | ¥ | 55,982 | 5.0 | (68.0 | ) | |||||
Net income |
¥ | 107,244 | 8.3 | ¥ | 29,506 | 2.6 | (72.5 | ) | |||||
Diluted earnings per share |
¥ | 565.80 | | ¥ | 157.23 | | (72.2 | ) | |||||
Average US$ exchange rate |
¥ | 114 | | ¥ | 101 | | | ||||||
Average Euro exchange rate |
¥ | 162 | | ¥ | 143 | | |
(3) Consolidated results by reporting segment
i) Components Business:
Sales in the components business for fiscal 2009 decreased by 15.1% to ¥577,055 million, and operating profit decreased by 68.3% to ¥31,830 million compared with fiscal 2008.
1) Fine Ceramic Parts Group
This reporting segment includes fine ceramic parts and automotive parts.
As a result of a substantial slump in component demand led by sharp decline in production activity in numerous industries, namely the semiconductor and automotive industries, overall sales and operating profit in this reporting segment decreased compared with fiscal 2008.
2) Semiconductor Parts Group
This reporting segment includes ceramic packages and organic packages.
As a result of rapid deterioration in demand for ceramic packages used mainly in digital consumer equipment and organic packages used mainly in servers from the latter half of the second quarter of fiscal 2009, sales and operating profit in this reporting segment both decreased compared with fiscal 2008.
3) Applied Ceramic Products Group
This reporting segment includes solar cells and modules, solar power generating systems, cutting tools, medical and dental implants, as well as jewelry and applied ceramic related products.
For the solar energy business, despite the impact of the yen appreciating against the Euro from the second half and a swift decline in demand in the fourth quarter, demand continued to show strong expansion until the third quarter, particularly in Europe and the United States, resulting in sales growth in this business compared with fiscal 2008. However, a significant decline in production activity in the automotive industry from the second half led to a decrease in demand for cutting tools. As a result, sales in this reporting segment decreased slightly compared with fiscal 2008. Operating profit was down due to one-off charge relating to an impairment of goodwill at a subsidiary as well as decreased sales for cutting tools.
5
4) Electronic Device Group
This reporting segment includes electronic components such as various types of capacitors, crystal related products, and connectors, and thin-film products such as thermal printheads and liquid crystal displays.
Demand for digital consumer equipment such as mobile phone handsets and PCs declined due to the global economic downturn, forcing a rapid decline in production of digital consumer equipment and inventory adjustments for components thereof from the second half. Further, the impact of a decline in component prices and yen appreciation coupled with an impairment loss of certain fixed assets led to decreases in sales and operating profit in this reporting segment compared with fiscal 2008.
ii) Equipment Business:
Sales in the equipment business for fiscal 2009 decreased by 10.0% to ¥448,055 million, and operating profit decreased by ¥50,540 million to ¥(4,216) million compared with fiscal 2008.
1) Telecommunications Equipment Group
This reporting segment includes mobile phone handsets as well as PHS handsets, base stations for PHS/EVDO, and iBurstTM related equipment.
Although the mobile phone handset related business newly acquired from SANYO Electric Co., Ltd. (SANYO) contributed to sales from fiscal 2009, replacement demand for mobile phone handsets in the Japanese market weakened sharply due to the introduction of an installment sales method, while sales in overseas markets also decreased. As a result, sales in this reporting segment decreased only slightly compared with fiscal 2008. This reporting segment recorded an operating loss in fiscal 2009 due to the impact of a decrease in sales combined with decline in product price and the execution of structural reform at an overseas subsidiary.
6
2) Information Equipment Group
This reporting segment includes ECOSYS brand printers and copiers, and digital MFPs.
Despite implementing various strategies to expand sales, such as continuous new product launches and extending sales networks, the impact of the yens appreciation against the Euro and U.S. dollar coupled with significant restrictions on information technology investment in the corporate sector resulted in a decrease in sales of printers and digital MFPs. As a result, both sales and operating profit in this reporting segment decreased compared with fiscal 2008.
(iii) Others
This reporting segment includes various information and communications technology services and materials for electronic components.
Sales in this reporting segment for fiscal 2009 decreased by 9.0% compared with fiscal 2008 to ¥126,043 million due primarily to a decrease in sales of materials for electronic components. Despite an impairment of goodwill at a subsidiary, operating profit increased by 46.4% compared with fiscal 2008 to ¥14,106 million due to one-time gains from sales of certain real estate in Japan and overseas.
Consolidated Sales by Reporting Segment
(Yen in millions) | |||||||||||||||||
Years ended March 31, | Increase (Decrease) % |
||||||||||||||||
2008 | 2009 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Fine Ceramic Parts Group |
¥ | 81,309 | 6.3 | ¥ | 61,730 | 5.4 | (24.1 | ) | |||||||||
Semiconductor Parts Group |
154,538 | 12.0 | 135,137 | 12.0 | (12.6 | ) | |||||||||||
Applied Ceramic Products Group |
149,942 | 11.6 | 148,917 | 13.2 | (0.7 | ) | |||||||||||
Electronic Device Group |
294,201 | 22.8 | 231,271 | 20.5 | (21.4 | ) | |||||||||||
Total Components Business |
679,990 | 52.7 | 577,055 | 51.1 | (15.1 | ) | |||||||||||
Telecommunications Equipment Group |
220,817 | 17.1 | 218,758 | 19.4 | (0.9 | ) | |||||||||||
Information Equipment Group |
276,746 | 21.5 | 229,297 | 20.3 | (17.1 | ) | |||||||||||
Total Equipment Business |
497,563 | 38.6 | 448,055 | 39.7 | (10.0 | ) | |||||||||||
Others |
138,494 | 10.7 | 126,043 | 11.2 | (9.0 | ) | |||||||||||
Adjustments and eliminations |
(25,611 | ) | (2.0 | ) | (22,567 | ) | (2.0 | ) | | ||||||||
Net sales |
¥ | 1,290,436 | 100.0 | ¥ | 1,128,586 | 100.0 | (12.5 | ) | |||||||||
7
Consolidated Operating Profit (Loss) by Reporting Segment
(Yen in millions) | |||||||||||||||
Years ended March 31, | Increase (Decrease) % |
||||||||||||||
2008 | 2009 | ||||||||||||||
Amount | %* | Amount | %* | ||||||||||||
Fine Ceramic Parts Group |
¥ | 11,167 | 13.7 | ¥ | (240 | ) | | | |||||||
Semiconductor Parts Group |
20,027 | 13.0 | 8,671 | 6.4 | (56.7 | ) | |||||||||
Applied Ceramic Products Group |
32,655 | 21.8 | 27,469 | 18.4 | (15.9 | ) | |||||||||
Electronic Device Group |
36,524 | 12.4 | (4,070 | ) | | | |||||||||
Total Components Business |
100,373 | 14.8 | 31,830 | 5.5 | (68.3 | ) | |||||||||
Telecommunications Equipment Group |
6,786 | 3.1 | (17,713 | ) | | | |||||||||
Information Equipment Group |
39,538 | 14.3 | 13,497 | 5.9 | (65.9 | ) | |||||||||
Total Equipment Business |
46,324 | 9.3 | (4,216 | ) | | | |||||||||
Others |
9,635 | 7.0 | 14,106 | 11.2 | 46.4 | ||||||||||
Operating profit |
156,332 | 12.1 | 41,720 | 3.7 | (73.3 | ) | |||||||||
Corporate |
12,497 | | 7,632 | | (38.9 | ) | |||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
6,091 | | 6,460 | | 6.1 | ||||||||||
Adjustments and eliminations |
(78 | ) | | 170 | | | |||||||||
Income before income taxes |
¥ | 174,842 | 13.5 | ¥ | 55,982 | 5.0 | (68.0 | ) | |||||||
* | % to net sales of each corresponding segment |
8
(4) Consolidated Sales by Geographic Area
(Yen in millions) | |||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||
2008 | 2009 | ||||||||||||
Amount | % | Amount | % | ||||||||||
Japan |
¥ | 507,837 | 39.4 | ¥ | 473,387 | 41.9 | (6.8 | ) | |||||
United States of America |
248,760 | 19.3 | 201,502 | 17.9 | (19.0 | ) | |||||||
Europe |
229,830 | 17.8 | 200,483 | 17.8 | (12.8 | ) | |||||||
Asia |
232,425 | 18.0 | 183,347 | 16.2 | (21.1 | ) | |||||||
Others |
71,584 | 5.5 | 69,867 | 6.2 | (2.4 | ) | |||||||
Net sales |
¥ | 1,290,436 | 100.0 | ¥ | 1,128,586 | 100.0 | (12.5 | ) | |||||
1) Japan
Sales decreased compared with the previous fiscal year due mainly to decreased demand for components for digital consumer equipment.
2) United Sates of America
Sales decreased compared with the previous fiscal year due to impact of the yens appreciation, in addition to a decline in sales in the Telecommunication Equipment Group and the Information Equipment Group, and to a decline in demand for electronic components.
3) Europe
Sales decreased compared with the previous fiscal year due mainly to the yens appreciation, in addition to sales decline in the Information Equipment Group affected by a slowdown in information technology investment.
4) Asia
Sales decreased compared with the previous fiscal year due mainly to a decline in demand for components for digital consumer equipment and to the yens appreciation.
5) Others
Despite the addition of the mobile phone handset related business from SANYO, sales decreased compared with the previous fiscal year due mainly to a decline in sales in the Information Equipment Group.
9
(5) Capital Expenditures and Depreciation
(Yen in millions) | |||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||
2008 | 2009 | ||||||||||||
Amount | % to net sales |
Amount | % to net sales |
||||||||||
Capital expenditure |
¥ | 85,101 | 6.6 | ¥ | 63,055 | 5.6 | (25.9 | ) | |||||
Depreciation |
¥ | 75,630 | 5.9 | ¥ | 83,753 | 7.4 | 10.7 |
During fiscal 2009, Kyocera made capital expenditures to increase production volume in the solar energy business. In the forth quarter, Kyocera substantially slowed down capital expenditures in other businesses in reaction to deteriorating business environment. Therefore, capital expenditures in this fiscal year decreased compared with fiscal 2008.
Depreciation increased compared with the previous fiscal year due mainly to the acquisition in Telecommunications Equipment Group.
[Consolidated Forecasts for the Year Ending March 31, 2010 (fiscal 2010)]
(Yen in millions, except per share amounts and exchange rates) | |||||||||||
Fiscal 2009 Results | Fiscal 2010 Forecasts | Increase (Decrease) (%) |
|||||||||
Amount | % | Amount | % | ||||||||
Net sales |
¥1,128,586 | 100.0 | ¥1,040,000 | 100.0 | (7.8 | ) | |||||
Profit from operations |
¥ 43,419 | 3.8 | ¥ 44,000 | 4.2 | 1.3 | ||||||
Income before income taxes |
¥ 55,982 | 5.0 | ¥ 57,000 | 5.5 | 1.8 | ||||||
Net income attributable to shareholders of KYOCERA CORPORATION |
¥ 29,506 | 2.6 | ¥ 34,000 | 3.3 | 15.2 | ||||||
Diluted earnings per share attributable to shareholders of KYOCERA CORPORATION |
¥ 157.23 | | ¥ 181.18 | | 15.2 | ||||||
Average US$ exchange rate |
¥ 101 | | ¥ 92 | | | ||||||
Average Euro exchange rate |
¥ 143 | | ¥ 123 | | | ||||||
Capital expenditures |
¥ 63,055 | 5.6 | ¥ 43,000 | 4.1 | (31.8 | ) | |||||
Depreciation |
¥ 83,753 | 7.4 | ¥ 68,000 | 6.5 | (18.8 | ) |
Net income attributable to shareholders of KYOCERA CORPORATION is computed in the same manner as for net income for the year ended March 31, 2009.
Earnings per share attributable to shareholders of KYOCERA CORPORATION is computed based on Statement of Financial Accounting Standards No.128. Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2009.
10
The future of the global economy is quite unpredictable, however, it is expected to take time to move to a recovery trend as a result of the implementation of economic stimulus packages and monetary policies.
Demand for digital consumer equipment remains slow, while with respect to exchange rates, which constitute the basis of the financial forecast for fiscal 2010, the yen is expected to appreciate against both the U.S. dollars and the Euro. Accordingly, the business environment surrounding Kyocera Group in fiscal 2010 is expected to be severe.
In the components business, certain products are showing recovery in demand relative to the fourth quarter of fiscal 2009, however, future trends of recovery in demand are still unclear. With respect to the equipment business, slowdown in replacement demand for mobile phone handsets is expected to continue in the United States and Japan. Restraint on investment in information technologies by corporations is also expected to continue.
Based on this forecast of market conditions, Kyocera expects a decline in sales for fiscal 2010 compared with fiscal 2009. Even under these circumstances, Kyocera Group as a whole will execute all-out cost cutting and reduction of capital expenditures and will aim to achieve profit growth compared with fiscal 2009. Kyocera will also aim to establish highly profitable structure as quickly as possible by expanding businesses in the information and communication market, as well as in the environment and energy market.
11
Consolidated sales and operating profit (loss) forecasts by reporting segment are as follows.
Consolidated Sales by Reporting Segment
(Yen in millions) | |||||||||||||||||
Fiscal 2009 Results | Fiscal 2010 Forecasts | Increase (Decrease) (%) |
|||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Fine Ceramic Parts Group |
¥ | 61,730 | 5.4 | ¥ | 50,000 | 4.8 | (19.0 | ) | |||||||||
Semiconductor Parts Group |
135,137 | 12.0 | 110,000 | 10.6 | (18.6 | ) | |||||||||||
Applied Ceramic Products Group |
148,917 | 13.2 | 158,000 | 15.2 | 6.1 | ||||||||||||
Electronic Device Group |
231,271 | 20.5 | 185,000 | 17.8 | (20.0 | ) | |||||||||||
Total Components Business |
577,055 | 51.1 | 503,000 | 48.4 | (12.8 | ) | |||||||||||
Telecommunications Equipment Group |
218,758 | 19.4 | 200,000 | 19.2 | (8.6 | ) | |||||||||||
Information Equipment Group |
229,297 | 20.3 | 234,000 | 22.5 | 2.1 | ||||||||||||
Total Equipment Business |
448,055 | 39.7 | 434,000 | 41.7 | (3.1 | ) | |||||||||||
Others |
126,043 | 11.2 | 123,000 | 11.8 | (2.4 | ) | |||||||||||
Adjustments and eliminations |
(22,567 | ) | (2.0 | ) | (20,000 | ) | (1.9 | ) | | ||||||||
Net sales |
¥ | 1,128,586 | 100.0 | ¥ | 1,040,000 | 100.0 | (7.8 | ) | |||||||||
12
Consolidated Operating Profit (Loss) by Reporting Segment
(Yen in millions) | |||||||||||||
Fiscal 2009 Results | Fiscal 2010 Forecasts | Increase (Decrease) (%) |
|||||||||||
Amount | %* | Amount | %* | ||||||||||
Fine Ceramic Parts Group |
¥ (240 | ) | | ¥ 0 | 0.0 | | |||||||
Semiconductor Parts Group |
8,671 | 6.4 | 4,000 | 3.6 | (53.9 | ) | |||||||
Applied Ceramic Products Group |
27,469 | 18.4 | 18,000 | 11.4 | (34.5 | ) | |||||||
Electronic Device Group |
(4,070 | ) | | 2,000 | 1.1 | | |||||||
Total Components Business |
31,830 | 5.5 | 24,000 | 4.8 | (24.6 | ) | |||||||
Telecommunications Equipment Group |
(17,713 | ) | | (6,000 | ) | | | ||||||
Information Equipment Group |
13,497 | 5.9 | 11,000 | 4.7 | (18.5 | ) | |||||||
Total Equipment Business |
(4,216 | ) | | 5,000 | 1.2 | | |||||||
Others |
14,106 | 11.2 | 4,000 | 3.3 | (71.6 | ) | |||||||
Operating profit |
41,720 | 3.7 | 33,000 | 3.2 | (20.9 | ) | |||||||
Corporate and others |
14,262 | | 24,000 | | 68.3 | ||||||||
Income before income taxes |
¥55,982 | 5.0 | ¥57,000 | 5.5 | 1.8 | ||||||||
* | % to net sales of each corresponding segment |
13
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 lists.
(1) | General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia, particularly China |
(2) | Unexpected changes in economic, political and legal conditions in China |
(3) | Our ability to develop, launch and produce innovative products, including meeting quality and delivery standards, and our ability to otherwise meet the advancing technological requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components |
(4) | Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes which may adversely affect our production yields and operating results |
(5) | Factors that may affect our exports, including a strong yen, political and economic instability, difficulties in collection of accounts receivable, decrease in cost competitiveness of our products, increases in shipping and handling costs, difficulty in staffing and managing international operations and inadequate protection of our intellectual property |
(6) | Changes in exchange rates, particularly between the yen and the U.S. dollar and Euro, respectively, in which we make significant sales |
(7) | Inability to secure skilled employees, particularly engineering and technical personnel |
(8) | Insufficient protection of our trade secrets and patents |
(9) | Our continuing to hold licenses to manufacture and sell certain of our products |
(10) | The possibility that future initiatives and in-process research and development may not produce the desired results |
(11) | The possibility that companies or assets acquired by us may require more cost than expected for integration, and may not produce the returns or benefits, or bring in business opportunities, which we expect |
(12) | Events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of disease |
(13) | The occurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business facilities are located |
(14) | The possibility of future tightening of environmental laws and regulations in Japan and other countries which may increase our environmental liability and compliance obligations |
(15) | Fluctuations in the value of, and impairment losses on, securities and other assets held by us |
(16) | Changes in accounting principles |
Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.
14
2. Analysis of Financial Position
1. Consolidated Cash Flows
Cash and cash equivalents at March 31, 2009 decreased by ¥178,339 million to ¥269,247 million compared with those at March 31, 2008.
(Yen in millions) | ||||||
Years Ended March 31, | ||||||
2008 | 2009 | |||||
Cash flows from operating activities |
196,935 | 99,664 | ||||
Cash flows from investing activities |
14,894 | (201,957 | ) | |||
Cash flows from financing activities |
(28,071 | ) | (64,287 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
(18,380 | ) | (11,759 | ) | ||
Net increase (decrease) in cash and cash equivalents |
165,378 | (178,339 | ) | |||
Cash and cash equivalents at beginning of year |
282,208 | 447,586 | ||||
Cash and cash equivalents at end of year |
447,586 | 269,247 |
(1) Cash flows from operating activities
Net cash provided by operating activities in fiscal 2009 decreased by ¥97,271 million to ¥99,664 million from ¥196,935 million in fiscal 2008. This was due mainly to a decrease in net income.
(2) Cash flows from investing activities
Cash flow from investing activities turned from ¥14,894 million of cash inflows in fiscal 2008 to ¥201,957 million of cash outflows in fiscal 2009. This was due mainly to a decrease in withdrawal of certificate deposits and time deposits, and a decrease in proceeds from sales and maturities of securities.
(3) Cash flows from financing activities
Net cash used in financing activities in fiscal 2009 increased by ¥36,216 million to ¥64,287 million from ¥28,071 million in fiscal 2008. This was due mainly to purchases of treasury stock from November 28, 2008 to December 22, 2008.
2. Indexes of Consolidated Cash Flows
Years Ended March 31, | |||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||
Stockholders equity to total assets |
67.3 | % | 66.7 | % | 71.1 | % | 73.4 | % | 74.6 | % | |||||
Market capitalization to total assets |
82.2 | % | 101.3 | % | 98.4 | % | 80.2 | % | 67.0 | % | |||||
Interest bearing debts per operating cash flows (years) |
1.0 | 0.8 | 0.2 | 0.1 | 0.6 | ||||||||||
Operating cash flows per interest paid (ratio) |
62.4 | 88.5 | 93.4 | 161.8 | 153.8 |
Interest bearing debts represent all debts with interest expense included in consolidated balance sheets.
15
3. Basic Profit Distribution Policy and Dividends for Fiscal 2009 and Fiscal 2010
(1) Basic Profit Distribution Policy
Kyocera believes that the best way to increase corporate value and meet shareholders expectations is to improve future consolidated performance on an ongoing basis. Kyocera therefore has adopted a principal guideline that dividend amounts within a range based on net income on a consolidated basis, and has set its consolidated dividend policy to maintain a consolidated dividend ratio at a level of approximately 20% to 25% of consolidated net income. In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors including the amount of capital expenditures necessary for medium to long-term corporate growth.
Kyocera also has adopted policies to ensure a sound financial basis, and, for such purpose, it sets aside other general reserves in preparation for the creation of new businesses, cultivation of new markets, development of new technologies and acquisition of outside management resources necessary to achieve sustainable corporate growth.
(2) Dividends for fiscal 2009
Based on performance during fiscal 2009 and pursuant to the aforementioned policies, Kyocera will distribute a year-end dividend in the amount of 60 yen per share. When aggregated with the interim dividend in the amount of 60 yen per share, the total annual dividend will be 120 yen per share, the same amount as in the previous fiscal year.
(3) Dividend Forecast for Fiscal 2010
Dividend amounts for fiscal 2010 will be decided pursuant to (1) Basic Profit Distribution Policy set forth above. At present, Kyocera forecasts a total annual dividend in the amount of 120 yen per share, based on its financial forecast for fiscal 2010.
16
KYOCERA GROUP
Kyocera group consists of Kyocera Corporation, 211 subsidiaries and 10 affiliates.
(Chart of the group companies)
17
MANAGEMENT POLICIES
1. Basic Policy
Kyocera aims to be respected by society as The Company from the perspective of corporate ethics, while maintaining continuous sales growth and high profitability. To achieve this management vision, Kyoceras management policy is to further drive business expansion to be a creative company that continues to grow. In order to implement this policy, Kyocera aims to increase corporate value by expanding businesses; namely by promoting efficient use of management resources and further strengthening consolidated group management.
2. Target of Pre-tax Income Ratio
To be a creative company that continues to grow, it is essential to be always highly profitable. Specifically, Kyocera aims to quickly achieve its target of a pre-tax income ratio of 15% or higher.
3. Medium Term Management Strategy
Kyocera promotes high-value-added diversification as its management strategy to realize such management policy. This involves ensuring that each business is highly profitable and pursuing synergies among each business with the objective of driving sustainable growth even in an ever-changing business environment.
Specifically, Kyocera aims to: 1) exploit competitive advantages; 2) strengthen existing businesses; and 3) create new businesses.
1) Exploit competitive advantages
Sources of competitive advantage for Kyocera over other companies in implementing its diversification strategy are the Kyocera Philosophy, which places peoples hearts at its core, the Amoeba Management system, which is unique to Kyocera and has been a driving force for growth since Kyocera Corporations earliest days, and a strong financial structure With these foundations firmly in place, Kyocera endeavors to strengthen competitiveness in technological development, sales and marketing in the high-growth potential markets for information and communication and for environment and energy, and to translate its diversification strategy into improved business performance.
2) Strengthen existing businesses
Kyocera strives to continuously improve profitability in all existing businesses within Kyocera Group. Elsewhere, by strengthening ties and maximizing synergies between headquarters Kyocera Corporation and Kyocera Group companies, Kyocera seeks to improve profitability in each business segment on a consolidated basis. In promoting a global strategy in each business, Kyocera has created development, manufacturing and sales systems in optimal locations, while the integration of Group-wide resources helps boost the competitiveness of existing businesses. Kyocera regularly reviews those businesses that have lost market competitiveness and that show little promise of expansion going forward.
18
3) Create new businesses
Kyocera endeavors to create businesses that will become its core going forward in order to improve consolidated performance over the medium term. To achieve this goal, Kyocera integrates Group-wide management resources to develop new technologies and products and create new markets. The focus of Kyoceras business creation strategy lies in the markets for information and communication and for environmental and energy.
4. Management Challenges
In order for Kyocera Group as a whole to overcome the current difficult circumstances and improve its performance, Kyocera has substantially changed its management structure by promoting young members of the management team as officers and directors of the Company and the group companies.
Kyocera faces the following challenges in its fiscal year ending March 31, 2010 and beyond.
(1) Establish Highly Profitable Corporate Structure
In the year ending March 31, 2010 (fiscal 2010), it is expected that harsh business environment will continue, where expansion of sales is difficult. However, Kyocera will endeavor to enhance its corporate structure and to secure profitability even in the face of the current sluggish business environment. Particularly, Kyocera will manage its business by thoroughly implementing the Kyocera Philosophy and the Amoeba Management System to achieve maximum sales and minimum costs by all employees effort. In order to improve profitability as quickly as possible, all divisions will engage in all-out cost cutting, including the reduction of manufacturing costs and review of capital expenditures plans.
Kyocera will improve the profitability of existing businesses and develop competitive new products and technologies to establish a highly profitable structure by efficiently utilizing Kyoceras management resources to pursue synergetic effects.
19
(2) Business Expansion in Important Markets
Kyocera will expand its businesses in the information and communication market and the environment and energy market. In the information and communication market it is ensuring the linkage of new business opportunities with its business expansion, such as commencement of provision of new generation high speed wireless communication service in the domestic market. It also aims to expand its component business and equipment business by releasing products meeting the need for advanced digital consumer equipment in a timely fashion.
In the environment and energy market, further growth is expected due to raising awareness of environmental issues. Kyocera will continue to implement strategic investments to expand production capacity for solar cells and modules. It will also make efforts to reduce manufacturing costs and to improve conversion efficiency and expand solar energy business as a core business of Kyocera Group. In addition, it will make further efforts to expand its business in the environment and energy market by creating new products and expanding product items such as solid oxide fuel cell (SOFC) based power generating units for home use, utilizing its fine ceramic materials technologies.
20
CONSOLIDATED BALANCE SHEETS
(Yen in millions) | ||||||||||||||||
March 31, | Increase (Decrease) |
|||||||||||||||
2008 | 2009 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||
Cash and cash equivalents |
¥ | 447,586 | ¥ | 269,247 | ¥ | (178,339 | ) | |||||||||
Short-term investments |
147,503 | 202,143 | 54,640 | |||||||||||||
Trade notes receivables |
20,375 | 13,750 | (6,625 | ) | ||||||||||||
Trade accounts receivables |
205,522 | 158,754 | (46,768 | ) | ||||||||||||
Less allowances for doubtful accounts and sales returns |
(4,352 | ) | (4,669 | ) | (317 | ) | ||||||||||
Inventories |
205,212 | 199,641 | (5,571 | ) | ||||||||||||
Deferred income taxes |
41,244 | 35,187 | (6,057 | ) | ||||||||||||
Other current assets |
55,135 | 78,263 | 23,128 | |||||||||||||
Total current assets |
1,118,225 | 56.6 | 952,316 | 53.7 | (165,909 | ) | ||||||||||
Non-current assets : |
||||||||||||||||
Investments and advances : |
||||||||||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
16,753 | 19,376 | 2,623 | |||||||||||||
Securities and other investments |
437,369 | 351,849 | (85,520 | ) | ||||||||||||
Total investments and advances |
454,122 | 23.0 | 371,225 | 20.9 | (82,897 | ) | ||||||||||
Property, plant and equipment : |
||||||||||||||||
Land |
57,155 | 57,077 | (78 | ) | ||||||||||||
Buildings |
274,206 | 288,460 | 14,254 | |||||||||||||
Machinery and equipment |
718,812 | 707,399 | (11,413 | ) | ||||||||||||
Construction in progress |
17,920 | 6,397 | (11,523 | ) | ||||||||||||
Less accumulated depreciation |
(782,194 | ) | (793,279 | ) | (11,085 | ) | ||||||||||
Total property, plant and equipment |
285,899 | 14.4 | 266,054 | 15.0 | (19,845 | ) | ||||||||||
Goodwill |
39,794 | 2.0 | 63,226 | 3.6 | 23,432 | |||||||||||
Intangible assets |
29,829 | 1.5 | 60,077 | 3.4 | 30,248 | |||||||||||
Other assets |
48,877 | 2.5 | 60,904 | 3.4 | 12,027 | |||||||||||
Total non-current assets |
858,521 | 43.4 | 821,486 | 46.3 | (37,035 | ) | ||||||||||
Total assets |
¥ | 1,976,746 | 100.0 | ¥ | 1,773,802 | 100.0 | ¥ | (202,944 | ) | |||||||
21
(Yen in millions) | ||||||||||||||||
March 31, | ||||||||||||||||
2008 | 2009 | Increase (Decrease) |
||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current liabilities : |
||||||||||||||||
Short-term borrowings |
¥ | 7,279 | ¥ | 11,000 | ¥ | 3,721 | ||||||||||
Current portion of long-term debt |
3,432 | 5,523 | 2,091 | |||||||||||||
Trade notes and accounts payable |
95,390 | 62,579 | (32,811 | ) | ||||||||||||
Other notes and accounts payable |
66,757 | 43,452 | (23,305 | ) | ||||||||||||
Accrued payroll and bonus |
43,207 | 41,756 | (1,451 | ) | ||||||||||||
Accrued income taxes |
27,118 | 7,430 | (19,688 | ) | ||||||||||||
Other accrued liabilities |
32,815 | 26,967 | (5,848 | ) | ||||||||||||
Other current liabilities |
25,684 | 39,254 | 13,570 | |||||||||||||
Total current liabilities |
301,682 | 15.3 | 237,961 | 13.4 | (63,721 | ) | ||||||||||
Non-current liabilities : |
||||||||||||||||
Long-term debt |
8,298 | 7,189 | (1,109 | ) | ||||||||||||
Lease obligations |
2,088 | 22,964 | 20,876 | |||||||||||||
Accrued pension and severance liabilities |
15,041 | 34,567 | 19,526 | |||||||||||||
Deferred income taxes |
118,016 | 71,539 | (46,477 | ) | ||||||||||||
Other non-current liabilities |
15,454 | 16,494 | 1,040 | |||||||||||||
Total non-current liabilities |
158,897 | 8.0 | 152,753 | 8.6 | (6,144 | ) | ||||||||||
Total liabilities |
460,579 | 23.3 | 390,714 | 22.0 | (69,865 | ) | ||||||||||
Minority interests in subsidiaries |
65,002 | 3.3 | 59,425 | 3.4 | (5,577 | ) | ||||||||||
Stockholders equity : |
||||||||||||||||
Common stock |
115,703 | 115,703 | | |||||||||||||
Additional paid-in capital |
162,864 | 163,151 | 287 | |||||||||||||
Retained earnings |
1,143,821 | 1,150,050 | 6,229 | |||||||||||||
Accumulated other comprehensive income |
44,066 | (54,673 | ) | (98,739 | ) | |||||||||||
Treasury stock, at cost |
(15,289 | ) | (50,568 | ) | (35,279 | ) | ||||||||||
Total stockholders equity |
1,451,165 | 73.4 | 1,323,663 | 74.6 | (127,502 | ) | ||||||||||
Total liabilities, minority interests and stockholders equity |
¥ | 1,976,746 | 100.0 | ¥ | 1,773,802 | 100.0 | ¥ | (202,944 | ) | |||||||
Note: Accumulated other comprehensive income is as follows : | ||||||||||
(Yen in millions) | ||||||||||
March 31, | ||||||||||
2008 | 2009 | |||||||||
Net unrealized gains on securities |
¥ | 64,799 | ¥ | 11,621 | ||||||
Net unrealized gains (losses) on derivative financial instruments |
¥ | 196 | ¥ | (145 | ) | |||||
Pension adjustments |
¥ | 12,865 | ¥ | 53 | ||||||
Foreign currency translation adjustments |
¥ | (33,794 | ) | ¥ | (66,202 | ) |
22
CONSOLIDATED STATEMENTS OF INCOME
(Yen in millions and shares in thousands, except per share amounts) | |||||||||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||||||||
2008 | 2009 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
Net sales |
¥ | 1,290,436 | 100.0 | ¥ | 1,128,586 | 100.0 | ¥ | (161,850 | ) | (12.5 | ) | ||||||||||
Cost of sales |
883,763 | 68.5 | 836,638 | 74.1 | (47,125 | ) | (5.3 | ) | |||||||||||||
Gross profit |
406,673 | 31.5 | 291,948 | 25.9 | (114,725 | ) | (28.2 | ) | |||||||||||||
Selling, general and administrative expenses |
254,253 | 19.7 | 248,529 | 22.1 | (5,724 | ) | (2.3 | ) | |||||||||||||
Profit from operations |
152,420 | 11.8 | 43,419 | 3.8 | (109,001 | ) | (71.5 | ) | |||||||||||||
Other income (expenses) : |
|||||||||||||||||||||
Interest and dividend income |
18,444 | 1.4 | 15,441 | 1.4 | (3,003 | ) | (16.3 | ) | |||||||||||||
Interest expense |
(1,480 | ) | (0.1 | ) | (1,206 | ) | (0.1 | ) | 274 | | |||||||||||
Foreign currency transaction losses, net |
(956 | ) | (0.1 | ) | (91 | ) | (0.0 | ) | 865 | | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
6,091 | 0.5 | 6,460 | 0.6 | 369 | 6.1 | |||||||||||||||
Losses on sale of securities, net |
(622 | ) | (0.1 | ) | (2,840 | ) | (0.3 | ) | (2,218 | ) | | ||||||||||
Losses on impairment of securities |
(248 | ) | (0.0 | ) | (7,141 | ) | (0.6 | ) | (6,893 | ) | | ||||||||||
Other, net |
1,193 | 0.1 | 1,940 | 0.2 | 747 | 62.6 | |||||||||||||||
Total other income |
22,422 | 1.7 | 12,563 | 1.2 | (9,859 | ) | (44.0 | ) | |||||||||||||
Income before income taxes and minority interests |
174,842 | 13.5 | 55,982 | 5.0 | (118,860 | ) | (68.0 | ) | |||||||||||||
Income taxes |
60,235 | 4.6 | 22,779 | 2.1 | (37,456 | ) | (62.2 | ) | |||||||||||||
Income before minority interests |
114,607 | 8.9 | 33,203 | 2.9 | (81,404 | ) | (71.0 | ) | |||||||||||||
Minority interests |
(7,363 | ) | (0.6 | ) | (3,697 | ) | (0.3 | ) | 3,666 | | |||||||||||
Net income |
¥ | 107,244 | 8.3 | ¥ | 29,506 | 2.6 | ¥ | (77,738 | ) | (72.5 | ) | ||||||||||
Earnings per share : |
|||||||||||||||||||||
Net income : |
|||||||||||||||||||||
Basic |
¥ | 566.58 | ¥ | 157.27 | |||||||||||||||||
Diluted |
¥ | 565.80 | ¥ | 157.23 | |||||||||||||||||
Average number of shares of common stock outstanding : |
|||||||||||||||||||||
Basic |
189,283 | 187,618 | |||||||||||||||||||
Diluted |
189,544 | 187,661 |
23
Notes:
1. | Kyocera applies the SFAS No.130, Financial Reporting of Comprehensive Income. Based on this standard, comprehensive income for the years ended March 31, 2008 and 2009 were a decrease of ¥51,746 million and a decrease of ¥68,815 million, respectively. |
2. | Earnings per share amounts were computed based on SFAS No.128, Earnings per Share. Under SFAS No.128, basic earnings per share was computed based on the weighted average number of shares of common stock outstanding during each period, and diluted earnings per share was computed based on the diluted weighted average number of shares of stock outstanding during each period. |
24
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(Yen in millions and shares in thousands) | ||||||||||||||||||||||
(Number of shares of common stock) |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income |
Treasury stock |
Comprehensive income |
||||||||||||||||
Balance, March 31, 2007 (188,649) |
¥ | 115,703 | ¥ | 162,363 | ¥ | 1,055,293 | ¥ | 203,056 | ¥ | (21,855 | ) | |||||||||||
Cumulative effect of applying FIN 48 to opening balance |
3,968 | |||||||||||||||||||||
Net income for the year |
107,244 | ¥ | 107,244 | |||||||||||||||||||
Other comprehensive income |
(158,990 | ) | (158,990 | ) | ||||||||||||||||||
Total comprehensive income for the year |
¥ | (51,746 | ) | |||||||||||||||||||
Cash dividends |
(22,684 | ) | ||||||||||||||||||||
Purchase of treasury stock (18) |
(211 | ) | ||||||||||||||||||||
Reissuance of treasury stock (823) |
254 | 6,777 | ||||||||||||||||||||
Stock option plan of subsidiaries |
247 | |||||||||||||||||||||
Balance, March 31, 2008 (189,454) |
115,703 | 162,864 | 1,143,821 | 44,066 | (15,289 | ) | ||||||||||||||||
Adjustment for applying SFAS No. 158 to opening balance (Note) |
(522 | ) | (418 | ) | ||||||||||||||||||
Net income for the year |
29,506 | ¥ | 29,506 | |||||||||||||||||||
Other comprehensive income |
(98,321 | ) | (98,321 | ) | ||||||||||||||||||
Total comprehensive income for the year |
¥ | (68,815 | ) | |||||||||||||||||||
Cash dividends |
(22,755 | ) | ||||||||||||||||||||
Purchase of treasury stock (6,283) |
(38,219 | ) | ||||||||||||||||||||
Reissuance of treasury stock (357) |
106 | 2,940 | ||||||||||||||||||||
Stock option plan of subsidiaries |
181 | |||||||||||||||||||||
Balance, March 31, 2009 (183,528) |
¥ | 115,703 | ¥ | 163,151 | ¥ | 1,150,050 | ¥ | (54,673 | ) | ¥ | (50,568 | ) | ||||||||||
Note :
SFAS No. 158 - Employers Accounting for Defined Benefit Pension and Other Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106, and 132 (R).
Please refer to page 27 BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
25
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Yen in millions) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Cash flows from operating activities : |
||||||||
Net income |
¥ | 107,244 | ¥ | 29,506 | ||||
Adjustments to reconcile net income to net cash provided by operating activities : |
||||||||
Depreciation and amortization |
87,045 | 97,577 | ||||||
Write-down of inventories |
5,141 | 8,719 | ||||||
Minority interests |
7,363 | 3,697 | ||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
(6,091 | ) | (6,460 | ) | ||||
Losses (gains) on sales of property, plant and equipment, and intangible assets, net |
1,474 | (8,314 | ) | |||||
Losses on sale of securities, net |
622 | 2,840 | ||||||
Losses on impairments of securities |
248 | 7,141 | ||||||
Decrease in receivables |
13,732 | 75,866 | ||||||
(Increase) decrease in inventories |
(9,766 | ) | 643 | |||||
Increase (decrease) in notes and accounts payable |
5,177 | (77,648 | ) | |||||
Decrease in accrued income taxes |
(8,817 | ) | (21,024 | ) | ||||
Increase (decrease) in other current liabilities |
6,010 | (12,404 | ) | |||||
Other, net |
(12,447 | ) | (475 | ) | ||||
Net cash provided by operating activities |
196,935 | 99,664 | ||||||
Cash flows from investing activities : |
||||||||
Payments for purchases of securities |
(38,744 | ) | (74,793 | ) | ||||
Proceeds from sales and maturities of securities |
124,813 | 55,782 | ||||||
Acquisitions of businesses, net of cash acquired |
(26,483 | ) | (47,512 | ) | ||||
Payments for purchases of property, plant and equipment, and intangible assets |
(78,269 | ) | (85,191 | ) | ||||
Proceeds from sales of property, plant and equipment, and intangible assets |
877 | 12,893 | ||||||
Acquisition of certificate deposits and time deposits |
(372,798 | ) | (290,536 | ) | ||||
Withdrawal of certificate deposits and time deposits |
423,845 | 230,645 | ||||||
Other, net |
(18,347 | ) | (3,245 | ) | ||||
Net cash provided by (used in) investing activities |
14,894 | (201,957 | ) | |||||
Cash flows from financing activities : |
||||||||
Increase (decrease) in short-term debt |
(7,202 | ) | 2,536 | |||||
Payments of long-term debt |
(6,647 | ) | (3,600 | ) | ||||
Dividends paid |
(24,566 | ) | (24,248 | ) | ||||
Purchase of treasury stock |
(211 | ) | (38,219 | ) | ||||
Reissuance of treasury stock |
7,031 | 3,045 | ||||||
Other, net |
3,524 | (3,801 | ) | |||||
Net cash used in financing activities |
(28,071 | ) | (64,287 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
(18,380 | ) | (11,759 | ) | ||||
Net increase (decrease) in cash and cash equivalents |
165,378 | (178,339 | ) | |||||
Cash and cash equivalents at beginning of year |
282,208 | 447,586 | ||||||
Cash and cash equivalents at end of year |
¥ | 447,586 | ¥ | 269,247 | ||||
26
CAUTIONARY STATEMENT FOR PREMISE OF A GOING CONCERN
Not applicable.
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
1. Scope of consolidation and application of the equity method :
Major consolidated subsidiaries :
KYOCERA MITA CORPORATION
AVX CORPORATION
KYOCERA INTERNATIONAL, INC.
Major affiliates accounted for by the equity method :
WILLCOM, INC.
2. Changes in scope of consolidation and application of the equity method :
Consolidation | ||||
(Increase) |
41 | KYOCERA TELECOM EQUIPMENT (MALAYSIA) SDN. BHD. | ||
KYOCERA SANYO TELECOM, INC. | ||||
TA TRIUMPH-ADLER AKTIENGESELLSCHAFT* and others | ||||
(Decrease) |
6 | KYOCERA ZHENHUA COMMUNICATION EQUIPMENT CO., LTD. and others | ||
Equity method | ||||
(Increase) |
2 | F&S FINANCE AND SERVICE LEASING GmbH CONSULTA BUROTECHNIK SPOL. S.R.O. | ||
(Decrease) |
2 | TA TRIUMPH-ADLER AKTIENGESELLSCHAFT* MIS CO., LTD. | ||
*Moved from equity method to consolidation |
3. Summary of significant accounting policies
Kyoceras consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.
There is no material change in significant accounting policies.
<Accounting change>
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. The purpose of SFAS No. 157 is to define fair value, establish a framework for measuring fair value and enhance disclosures about fair value measurements. The measurement and disclosure requirements related to financial assets and financial liabilities were effective April 1, 2008. The adoption of SFAS No. 157 for financial assets and financial liabilities had no material impact on Kyoceras consolidated results of operations and financial position.
In September 2006, the FASB issued SFAS No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans-an amendment of FASB Statements No.87, 88, 106, and 132 (R). SFAS No. 158 requires an employer to measure the funded status of a benefit plan as of the date of its fiscal year-end statement of financial position for the years ended after December 15, 2008. Kyocera adopted this measurement date provision in the year ended March 31, 2009 and measured the funded status of its benefit plans at the date of its fiscal year-end statement of financial position. As a result of applying the transition method of this provision, retained earnings and other comprehensive income at the beginning of the year decreased by ¥522 million and ¥418 million, respectively.
27
SEGMENT INFORMATION
1. Reporting segments :
(Yen in millions) | |||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||
2008 | 2009 | ||||||||||||||
Amount | Amount | Amount | % | ||||||||||||
Net sales : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 81,309 | ¥ | 61,730 | ¥ | (19,579 | ) | (24.1 | ) | ||||||
Semiconductor Parts Group |
154,538 | 135,137 | (19,401 | ) | (12.6 | ) | |||||||||
Applied Ceramic Products Group |
149,942 | 148,917 | (1,025 | ) | (0.7 | ) | |||||||||
Electronic Device Group |
294,201 | 231,271 | (62,930 | ) | (21.4 | ) | |||||||||
Telecommunications Equipment Group |
220,817 | 218,758 | (2,059 | ) | (0.9 | ) | |||||||||
Information Equipment Group |
276,746 | 229,297 | (47,449 | ) | (17.1 | ) | |||||||||
Others |
138,494 | 126,043 | (12,451 | ) | (9.0 | ) | |||||||||
Adjustments and eliminations |
(25,611 | ) | (22,567 | ) | 3,044 | | |||||||||
¥ | 1,290,436 | ¥ | 1,128,586 | ¥ | (161,850 | ) | (12.5 | ) | |||||||
Operating profit (loss) : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 11,167 | ¥ | (240 | ) | ¥ | (11,407 | ) | | ||||||
Semiconductor Parts Group |
20,027 | 8,671 | (11,356 | ) | (56.7 | ) | |||||||||
Applied Ceramic Products Group |
32,655 | 27,469 | (5,186 | ) | (15.9 | ) | |||||||||
Electronic Device Group |
36,524 | (4,070 | ) | (40,594 | ) | | |||||||||
Telecommunications Equipment Group |
6,786 | (17,713 | ) | (24,499 | ) | | |||||||||
Information Equipment Group |
39,538 | 13,497 | (26,041 | ) | (65.9 | ) | |||||||||
Others |
9,635 | 14,106 | 4,471 | 46.4 | |||||||||||
156,332 | 41,720 | (114,612 | ) | (73.3 | ) | ||||||||||
Corporate |
12,497 | 7,632 | (4,865 | ) | (38.9 | ) | |||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
6,091 | 6,460 | 369 | 6.1 | |||||||||||
Adjustments and eliminations |
(78 | ) | 170 | 248 | | ||||||||||
Income before income taxes and minority interests |
¥ | 174,842 | ¥ | 55,982 | ¥ | (118,860 | ) | (68.0 | ) | ||||||
Segment assets : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 53,713 | ¥ | 45,861 | ¥ | (7,852 | ) | (14.6 | ) | ||||||
Semiconductor Parts Group |
100,041 | 79,148 | (20,893 | ) | (20.9 | ) | |||||||||
Applied Ceramic Products Group |
149,870 | 164,799 | 14,929 | 10.0 | |||||||||||
Electronic Device Group |
400,851 | 339,616 | (61,235 | ) | (15.3 | ) | |||||||||
Telecommunications Equipment Group |
66,191 | 115,926 | 49,735 | 75.1 | |||||||||||
Information Equipment Group |
203,248 | 251,477 | 48,229 | 23.7 | |||||||||||
Others |
131,946 | 122,474 | (9,472 | ) | (7.2 | ) | |||||||||
1,105,860 | 1,119,301 | 13,441 | 1.2 | ||||||||||||
Corporate |
906,159 | 693,505 | (212,654 | ) | (23.5 | ) | |||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
16,753 | 19,376 | 2,623 | 15.7 | |||||||||||
Adjustments and eliminations |
(52,026 | ) | (58,380 | ) | (6,354 | ) | | ||||||||
Total assets |
¥ | 1,976,746 | ¥ | 1,773,802 | ¥ | (202,944 | ) | (10.3 | ) | ||||||
Depreciation and amortization : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 7,511 | ¥ | 7,986 | ¥ | 475 | 6.3 | ||||||||
Semiconductor Parts Group |
14,647 | 13,592 | (1,055 | ) | (7.2 | ) | |||||||||
Applied Ceramic Products Group |
9,685 | 11,100 | 1,415 | 14.6 | |||||||||||
Electronic Device Group |
24,627 | 24,329 | (298 | ) | (1.2 | ) | |||||||||
Telecommunications Equipment Group |
8,753 | 16,946 | 8,193 | 93.6 | |||||||||||
Information Equipment Group |
12,024 | 14,469 | 2,445 | 20.3 | |||||||||||
Others |
6,922 | 6,407 | (515 | ) | (7.4 | ) | |||||||||
Corporate |
2,876 | 2,748 | (128 | ) | (4.5 | ) | |||||||||
Total |
¥ | 87,045 | ¥ | 97,577 | ¥ | 10,532 | 12.1 | ||||||||
Capital expenditures : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 9,253 | ¥ | 5,405 | ¥ | (3,848 | ) | (41.6 | ) | ||||||
Semiconductor Parts Group |
8,752 | 7,199 | (1,553 | ) | (17.7 | ) | |||||||||
Applied Ceramic Products Group |
10,714 | 14,396 | 3,682 | 34.4 | |||||||||||
Electronic Device Group |
25,855 | 15,056 | (10,799 | ) | (41.8 | ) | |||||||||
Telecommunications Equipment Group |
2,317 | 3,898 | 1,581 | 68.2 | |||||||||||
Information Equipment Group |
15,475 | 11,865 | (3,610 | ) | (23.3 | ) | |||||||||
Others |
6,056 | 2,461 | (3,595 | ) | (59.4 | ) | |||||||||
Corporate |
6,679 | 2,775 | (3,904 | ) | (58.5 | ) | |||||||||
Total |
¥ | 85,101 | ¥ | 63,055 | ¥ | (22,046 | ) | (25.9 | ) | ||||||
28
2. Geographic segments (Sales and Operating profit (loss) by geographic area) :
(Yen in millions) | |||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||
2008 | 2009 | ||||||||||||||
Amount | Amount | Amount | % | ||||||||||||
Net sales : |
|||||||||||||||
Japan |
¥ | 538,729 | ¥ | 497,469 | ¥ | (41,260 | ) | (7.7 | ) | ||||||
Intra-group sales and transfer between geographic areas |
387,196 | 360,150 | (27,046 | ) | (7.0 | ) | |||||||||
925,925 | 857,619 | (68,306 | ) | (7.4 | ) | ||||||||||
United States of America |
282,677 | 245,463 | (37,214 | ) | (13.2 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
30,542 | 23,983 | (6,559 | ) | (21.5 | ) | |||||||||
313,219 | 269,446 | (43,773 | ) | (14.0 | ) | ||||||||||
Europe |
243,406 | 208,629 | (34,777 | ) | (14.3 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
39,172 | 27,991 | (11,181 | ) | (28.5 | ) | |||||||||
282,578 | 236,620 | (45,958 | ) | (16.3 | ) | ||||||||||
Asia |
200,675 | 156,762 | (43,913 | ) | (21.9 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
178,184 | 193,838 | 15,654 | 8.8 | |||||||||||
378,859 | 350,600 | (28,259 | ) | (7.5 | ) | ||||||||||
Others |
24,949 | 20,263 | (4,686 | ) | (18.8 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
15,076 | 12,684 | (2,392 | ) | (15.9 | ) | |||||||||
40,025 | 32,947 | (7,078 | ) | (17.7 | ) | ||||||||||
Adjustments and eliminations |
(650,170 | ) | (618,646 | ) | 31,524 | | |||||||||
¥ | 1,290,436 | ¥ | 1,128,586 | ¥ | (161,850 | ) | (12.5 | ) | |||||||
Operating profit (loss) : |
|||||||||||||||
Japan |
¥ | 101,176 | ¥ | 16,810 | ¥ | (84,366 | ) | (83.4 | ) | ||||||
United States of America |
11,694 | (6,086 | ) | (17,780 | ) | | |||||||||
Europe |
12,399 | 3,804 | (8,595 | ) | (69.3 | ) | |||||||||
Asia |
24,108 | 23,702 | (406 | ) | (1.7 | ) | |||||||||
Others |
2,922 | 725 | (2,197 | ) | (75.2 | ) | |||||||||
152,299 | 38,955 | (113,344 | ) | (74.4 | ) | ||||||||||
Corporate |
12,497 | 7,632 | (4,865 | ) | (38.9 | ) | |||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
6,091 | 6,460 | 369 | 6.1 | |||||||||||
Adjustments and eliminations |
3,955 | 2,935 | (1,020 | ) | (25.8 | ) | |||||||||
Income before income taxes and minority interests |
¥ | 174,842 | ¥ | 55,982 | ¥ | (118,860 | ) | (68.0 | ) | ||||||
29
3. Geographic segments (Sales by region) :
(Yen in millions) | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||
2008 | 2009 | Increase (Decrease) | |||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||
Japan |
¥ | 507,837 | 39.4 | ¥ | 473,387 | 41.9 | ¥ | (34,450 | ) | (6.8 | ) | ||||||||
United States of America |
248,760 | 19.3 | 201,502 | 17.9 | (47,258 | ) | (19.0 | ) | |||||||||||
Europe |
229,830 | 17.8 | 200,483 | 17.8 | (29,347 | ) | (12.8 | ) | |||||||||||
Asia |
232,425 | 18.0 | 183,347 | 16.2 | (49,078 | ) | (21.1 | ) | |||||||||||
Others |
71,584 | 5.5 | 69,867 | 6.2 | (1,717 | ) | (2.4 | ) | |||||||||||
Net sales |
¥ | 1,290,436 | 100.0 | ¥ | 1,128,586 | 100.0 | ¥ | (161,850 | ) | (12.5 | ) | ||||||||
Sales outside Japan |
¥ | 782,599 | ¥ | 655,199 | ¥ | (127,400 | ) | (16.3 | ) | ||||||||||
Sales outside Japan to net sales |
60.6 | % | 58.1 | % |
30
EARNINGS PER SHARE
1. Stockholders equity per share, basic and diluted earnings per share are as follows:
(Japanese yen) | ||||
Years ended March 31, | ||||
2008 | 2009 | |||
Stockholders equity per share |
¥7,659.72 | ¥7,212.32 | ||
Basic earnings per share |
566.58 | 157.27 | ||
Diluted earnings per share |
565.80 | 157.23 | ||
2. A reconciliation of the numerators and the denominators of basic and diluted earnings per share computations are as follows: | ||||
(Yen in millions, except per share amounts) | ||||
Years ended March 31, | ||||
2008 | 2009 | |||
Net income |
¥107,244 | ¥29,506 | ||
Basic earnings per share |
||||
Net income |
566.58 | 157.27 | ||
Diluted earnings per share |
||||
Net income |
565.80 | 157.23 | ||
Basic average number of shares outstanding (shares in thousands) |
189,283 | 187,618 | ||
Dilutive effect of stock options (shares in thousands) |
261 | 43 | ||
Diluted average number of shares outstanding (shares in thousands) |
189,544 | 187,661 |
31
BALANCE SHEETS
(Yen in millions) | ||||||||||||||||
March 31, | Increase (Decrease) |
|||||||||||||||
2008 | 2009 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||
Cash and bank deposits |
¥ | 123,465 | ¥ | 39,939 | ¥ | (83,526 | ) | |||||||||
Trade notes receivable |
18,658 | 4,147 | (14,511 | ) | ||||||||||||
Trade accounts receivable |
113,025 | 99,853 | (13,172 | ) | ||||||||||||
Marketable securities |
223,900 | 201,597 | (22,303 | ) | ||||||||||||
Finished goods and merchandise |
21,246 | 20,535 | (711 | ) | ||||||||||||
Work in process |
19,978 | 20,702 | 724 | |||||||||||||
Raw materials |
15,232 | | (15,232 | ) | ||||||||||||
Supplies |
1,527 | | (1,527 | ) | ||||||||||||
Raw materials and Supplies |
| 13,573 | 13,573 | |||||||||||||
Advance payments |
19,415 | 28,426 | 9,011 | |||||||||||||
Prepaid expenses |
87 | 387 | 300 | |||||||||||||
Deferred income taxes |
13,915 | 12,525 | (1,390 | ) | ||||||||||||
Short-term loans to subsidiaries |
8,552 | 7,987 | (565 | ) | ||||||||||||
Other accounts receivable |
12,498 | 6,281 | (6,217 | ) | ||||||||||||
Refundable income tax |
| 10,178 | 10,178 | |||||||||||||
Other current assets |
2,500 | 1,735 | (765 | ) | ||||||||||||
Allowances for doubtful accounts |
(1,022 | ) | (116 | ) | 906 | |||||||||||
Total current assets |
592,976 | 40.4 | 467,749 | 36.6 | (125,227 | ) | ||||||||||
Non-current assets : |
||||||||||||||||
Tangible fixed assets : |
||||||||||||||||
Buildings |
38,108 | 39,800 | 1,692 | |||||||||||||
Structures |
1,967 | 2,113 | 146 | |||||||||||||
Machinery and equipment |
42,701 | 35,082 | (7,619 | ) | ||||||||||||
Vehicles |
19 | 13 | (6 | ) | ||||||||||||
Tools, furniture and fixtures |
7,823 | 8,040 | 217 | |||||||||||||
Land |
33,871 | 35,415 | 1,544 | |||||||||||||
Leased assets |
| 86 | 86 | |||||||||||||
Construction in progress |
1,432 | 2,613 | 1,181 | |||||||||||||
Total tangible fixed assets |
125,921 | 8.6 | 123,162 | 9.6 | (2,759 | ) | ||||||||||
Intangible assets : |
||||||||||||||||
Goodwill |
| 9,638 | 9,638 | |||||||||||||
Patent rights |
5,335 | 3,170 | (2,165 | ) | ||||||||||||
Trademark |
104 | 1,864 | 1,760 | |||||||||||||
Software |
633 | 679 | 46 | |||||||||||||
Leased Assets |
| 60 | 60 | |||||||||||||
Other intangible assets |
14 | 7,114 | 7,100 | |||||||||||||
Total intangible assets |
6,086 | 0.4 | 22,525 | 1.8 | 16,439 | |||||||||||
Investments and other assets : |
||||||||||||||||
Investments in securities |
400,838 | 315,615 | (85,223 | ) | ||||||||||||
Investments in subsidiaries and affiliates |
260,833 | 268,877 | 8,044 | |||||||||||||
Investments in subsidiaries and affiliates other than equity securities |
27,623 | 30,412 | 2,789 | |||||||||||||
Long-term loans to subsidiaries |
23,181 | 27,594 | 4,413 | |||||||||||||
Impaired loans |
229 | 516 | 287 | |||||||||||||
Long-term prepaid expenses |
1,521 | 1,252 | (269 | ) | ||||||||||||
Long-term deposits |
25,000 | 19,000 | (6,000 | ) | ||||||||||||
Security deposits |
1,773 | 1,689 | (84 | ) | ||||||||||||
Other investments |
242 | 243 | 1 | |||||||||||||
Allowances for doubtful accounts |
(263 | ) | (559 | ) | (296 | ) | ||||||||||
Total investments and other assets |
740,977 | 50.6 | 664,639 | 52.0 | (76,338 | ) | ||||||||||
Total non-current assets |
872,984 | 59.6 | 810,326 | 63.4 | (62,658 | ) | ||||||||||
Total assets |
¥ | 1,465,960 | 100.0 | ¥ | 1,278,075 | 100.0 | ¥ | (187,885 | ) | |||||||
32
(Yen in millions) | ||||||||||||||||||
March 31, | ||||||||||||||||||
2008 | 2009 | Increase (Decrease) |
||||||||||||||||
Amount | % | Amount | % | |||||||||||||||
Current liabilities : |
||||||||||||||||||
Trade accounts payable |
¥ | 53,146 | ¥ | 32,979 | ¥ | (20,167 | ) | |||||||||||
Lease obligations |
| 43 | 43 | |||||||||||||||
Other payables |
38,312 | 31,837 | (6,475 | ) | ||||||||||||||
Accrued expenses |
8,288 | 7,661 | (627 | ) | ||||||||||||||
Income taxes payables |
13,616 | 283 | (13,333 | ) | ||||||||||||||
Advance received |
604 | 267 | (337 | ) | ||||||||||||||
Deposits received |
2,378 | 2,433 | 55 | |||||||||||||||
Unearned income |
15 | | (15 | ) | ||||||||||||||
Accrued bonuses |
11,726 | 10,336 | (1,390 | ) | ||||||||||||||
Accrued bonuses for directors |
133 | 24 | (109 | ) | ||||||||||||||
Warranty reserves |
5,363 | 6,879 | 1,516 | |||||||||||||||
Allowances for sales returns |
149 | 122 | (27 | ) | ||||||||||||||
Other current liabilities |
| 1,150 | 1,150 | |||||||||||||||
Total current liabilities |
133,730 | 9.1 | 94,014 | 7.4 | (39,716 | ) | ||||||||||||
Non-current liabilities : |
||||||||||||||||||
Lease obligations |
| 114 | 114 | |||||||||||||||
Long-term accounts payable |
703 | 96 | (607 | ) | ||||||||||||||
Deferred income taxes |
102,102 | 54,941 | (47,161 | ) | ||||||||||||||
Accrued pension and severance costs |
8,809 | 9,065 | 256 | |||||||||||||||
Retirement allowances for directors and executive officers |
1,030 | 1,063 | 33 | |||||||||||||||
Other non-current liabilities |
171 | 168 | (3 | ) | ||||||||||||||
Total non-current liabilities |
112,815 | 7.7 | 65,447 | 5.1 | (47,368 | ) | ||||||||||||
Total liabilities |
246,545 | 16.8 | 159,461 | 12.5 | (87,084 | ) | ||||||||||||
Net assets |
||||||||||||||||||
Stockholders equity : |
||||||||||||||||||
Common stock |
115,703 | 7.9 | 115,703 | 9.1 | | |||||||||||||
Capital surplus: |
||||||||||||||||||
Additional paid-in capital |
192,555 | 192,555 | | |||||||||||||||
Other capital surplus |
381 | 486 | 105 | |||||||||||||||
Total capital surplus |
192,936 | 13.2 | 193,041 | 15.1 | 105 | |||||||||||||
Retained earnings : |
||||||||||||||||||
Legal reserves |
17,207 | 17,207 | | |||||||||||||||
Other retained earnings : |
716,316 | 707,584 | (8,732 | ) | ||||||||||||||
Reserve for special depreciation |
555 | 396 | (159 | ) | ||||||||||||||
Reserve for research and development |
1,000 | 1,000 | | |||||||||||||||
Reserve for dividends |
1,000 | 1,000 | | |||||||||||||||
Reserve for retirement benefits |
300 | 300 | | |||||||||||||||
Reserve for overseas investments |
1,000 | 1,000 | | |||||||||||||||
General reserve |
643,837 | 688,837 | 45,000 | |||||||||||||||
Unappropriated retained earnings |
68,624 | 15,051 | (53,573 | ) | ||||||||||||||
Total retained earnings |
733,523 | 50.0 | 724,791 | 56.7 | (8,732 | ) | ||||||||||||
Treasury stock, at cost |
(15,289 | ) | (1.0 | ) | (50,568 | ) | (4.0 | ) | (35,279 | ) | ||||||||
Total stockholders equity |
1,026,873 | 70.1 | 982,967 | 76.9 | (43,906 | ) | ||||||||||||
Difference of appreciation and conversion |
||||||||||||||||||
Net unrealized gains on other securities |
192,542 | 13.1 | 135,647 | 10.6 | (56,895 | ) | ||||||||||||
Total net assets |
1,219,415 | 83.2 | 1,118,614 | 87.5 | (100,801 | ) | ||||||||||||
Total liabilities and net assets |
¥ | 1,465,960 | 100.0 | ¥ | 1,278,075 | 100.0 | ¥ | (187,885 | ) | |||||||||
33
STATEMENTS OF INCOME
(Yen in millions) | |||||||||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||||||||
2008 | 2009 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
Net sales |
¥ | 539,320 | 100.0 | ¥ | 521,993 | 100.0 | ¥ | (17,327 | ) | (3.2 | ) | ||||||||||
Cost of sales |
413,420 | 76.7 | 448,285 | 85.9 | 34,865 | 8.4 | |||||||||||||||
Gross profit |
125,900 | 23.3 | 73,708 | 14.1 | (52,192 | ) | (41.5 | ) | |||||||||||||
Selling, general and administrative expenses |
77,349 | 14.3 | 82,244 | 15.7 | 4,895 | 6.3 | |||||||||||||||
Profit (Loss) from operations |
48,551 | 9.0 | (8,536 | ) | (1.6 | ) | (57,087 | ) | | ||||||||||||
Non-operating income : |
|||||||||||||||||||||
Interest and dividend income |
35,839 | 6.6 | 33,754 | 6.4 | (2,085 | ) | (5.8 | ) | |||||||||||||
Foreign currency transaction gains, net |
1,200 | 0.2 | 2,068 | 0.4 | 868 | 72.3 | |||||||||||||||
Other non-operating income |
7,860 | 1.5 | 3,493 | 0.7 | (4,367 | ) | (55.6 | ) | |||||||||||||
Total non-operating income |
44,899 | 8.3 | 39,315 | 7.5 | (5,584 | ) | (12.4 | ) | |||||||||||||
Non-operating expenses : |
|||||||||||||||||||||
Interest expense |
20 | 0.0 | 23 | 0.0 | 3 | 12.1 | |||||||||||||||
Depriciation expense in subsidiaries |
| | 738 | 0.1 | 738 | | |||||||||||||||
Loss on disposal of inventories |
1,508 | 0.3 | | | (1,508 | ) | | ||||||||||||||
Loss on sale of securities |
471 | 0.1 | | | (471 | ) | | ||||||||||||||
Loss on discontinuation of development |
| | 362 | 0.1 | 362 | | |||||||||||||||
Loss on reduction of fixed assets |
636 | 0.1 | 235 | 0.0 | (401 | ) | (63.1 | ) | |||||||||||||
Other non-operating expenses |
604 | 0.1 | 429 | 0.1 | (175 | ) | (28.9 | ) | |||||||||||||
Total non-operating expenses |
3,239 | 0.6 | 1,787 | 0.3 | (1,452 | ) | (44.8 | ) | |||||||||||||
Recurring profit |
90,211 | 16.7 | 28,992 | 5.6 | (61,219 | ) | (67.9 | ) | |||||||||||||
Non-recurring gain : |
|||||||||||||||||||||
Gain on sale of tangible fixed assets |
46 | 0.0 | 286 | 0.1 | 240 | 516.5 | |||||||||||||||
Reversal of allowance for doubtful accounts |
7 | 0.0 | 2 | 0.0 | (5 | ) | (67.2 | ) | |||||||||||||
Repatriation of settlement with foreign tax authorities |
1,832 | 0.3 | 32 | 0.0 | (1,800 | ) | (98.2 | ) | |||||||||||||
Other non-recurring gain |
375 | 0.1 | 18 | 0.0 | (357 | ) | (95.3 | ) | |||||||||||||
Total non-recurring gain |
2,260 | 0.4 | 338 | 0.1 | (1,922 | ) | (85.1 | ) | |||||||||||||
Non-recurring loss : |
|||||||||||||||||||||
Depreciation expense |
2,851 | 0.5 | | | (2,851 | ) | | ||||||||||||||
Loss on sale and disposal of tangible fixed assets |
671 | 0.1 | 589 | 0.1 | (82 | ) | (12.1 | ) | |||||||||||||
Impairment losses |
| | 2,309 | 0.5 | 2,309 | | |||||||||||||||
Loss on impairment of investment securities |
| | 1,651 | 0.3 | 1,651 | | |||||||||||||||
Loss on impairment of stocks of investment in subsidiaries |
| | 10,156 | 2.0 | 10,156 | | |||||||||||||||
Other non-recurring loss |
102 | 0.0 | 119 | 0.0 | 17 | 16.8 | |||||||||||||||
Total non-recurring loss |
3,624 | 0.6 | 14,824 | 2.9 | 11,200 | 309.0 | |||||||||||||||
Income before income taxes |
88,847 | 16.5 | 14,506 | 2.8 | (74,341 | ) | (83.7 | ) | |||||||||||||
Income taxes current |
26,837 | 5.0 | (1,077 | ) | (0.2 | ) | (27,914 | ) | | ||||||||||||
Refund of income taxes previous years |
(2,442 | ) | (0.5 | ) | (578 | ) | (0.1 | ) | 1,864 | | |||||||||||
Income taxes deferred |
(3,407 | ) | (0.6 | ) | 2,138 | 0.4 | 5,545 | | |||||||||||||
Net income |
¥ | 67,859 | 12.6 | ¥ | 14,023 | 2.7 | ¥ | (53,836 | ) | (79.3 | ) | ||||||||||
34
STATEMENT OF CHANGES IN NET ASSETS
(Yen in millions) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Stockholders equity |
||||||||
Common stock |
||||||||
Balance, March 31, 2008 |
¥ | 115,703 | ¥ | 115,703 | ||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
115,703 | 115,703 | ||||||
Capital surplus |
||||||||
Additional paid-in capital |
||||||||
Balance, March 31, 2008 |
192,555 | 192,555 | ||||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
192,555 | 192,555 | ||||||
Other capital surplus |
||||||||
Balance, March 31, 2008 |
127 | 381 | ||||||
Changes in net assets |
||||||||
Reissuance of treasury stock |
254 | 105 | ||||||
Total changes in net assets |
254 | 105 | ||||||
Balance, March 31, 2009 |
381 | 486 | ||||||
Total capital surplus |
||||||||
Balance, March 31, 2008 |
192,682 | 192,936 | ||||||
Changes in net assets |
||||||||
Reissuance of treasury stock |
254 | 105 | ||||||
Total changes in net assets |
254 | 105 | ||||||
Balance, March 31, 2009 |
192,936 | 193,041 | ||||||
Retained earnings |
||||||||
Legal reserves |
||||||||
Balance, March 31, 2008 |
17,207 | 17,207 | ||||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
17,207 | 17,207 | ||||||
Other retained earnings |
||||||||
Reserve for special depreciation |
||||||||
Balance, March 31, 2008 |
991 | 555 | ||||||
Changes in net assets |
||||||||
Appropriation to reserve for special depreciation |
31 | 98 | ||||||
Reversal of reserve for special depreciation |
(467 | ) | (257 | ) | ||||
Total changes in net assets |
(436 | ) | (159 | ) | ||||
Balance, March 31, 2009 |
¥ | 555 | ¥ | 396 | ||||
35
STATEMENT OF CHANGES IN NET ASSETS
(Yen in millions) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Reserve for research and development |
||||||||
Balance, March 31, 2008 |
¥ | 1,000 | ¥ | 1,000 | ||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
1,000 | 1,000 | ||||||
Reserve for dividends |
||||||||
Balance, March 31, 2008 |
1,000 | 1,000 | ||||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
1,000 | 1,000 | ||||||
Reserve for retirement benefits |
||||||||
Balance, March 31, 2008 |
300 | 300 | ||||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
300 | 300 | ||||||
Reserve for overseas investments |
||||||||
Balance, March 31, 2008 |
1,000 | 1,000 | ||||||
Changes in net assets |
||||||||
Total changes in net assets |
| | ||||||
Balance, March 31, 2009 |
1,000 | 1,000 | ||||||
General reserve |
||||||||
Balance, March 31, 2008 |
603,837 | 643,837 | ||||||
Changes in net assets |
||||||||
Appropriation to general reserve |
40,000 | 45,000 | ||||||
Total changes in net assets |
40,000 | 45,000 | ||||||
Balance, March 31, 2009 |
643,837 | 688,837 | ||||||
Unappropriated retained earnings |
||||||||
Balance, March 31, 2008 |
63,012 | 68,624 | ||||||
Changes in net assets |
||||||||
Appropriation to reserve for special depreciation |
(31 | ) | (98 | ) | ||||
Reversal of reserve for special depreciation |
467 | 257 | ||||||
Appropriation to general reserve |
(40,000 | ) | (45,000 | ) | ||||
Dividends |
(22,684 | ) | (22,755 | ) | ||||
Net income |
67,859 | 14,023 | ||||||
Total changes in net assets |
5,612 | (53,573 | ) | |||||
Balance, March 31, 2009 |
68,624 | 15,051 | ||||||
Total retained earnings |
||||||||
Balance, March 31, 2008 |
688,347 | 733,523 | ||||||
Changes in net assets |
||||||||
Appropriation to reserve for special depreciation |
| | ||||||
Reversal of reserve for special depreciation |
| | ||||||
Appropriation to general reserve |
| | ||||||
Dividends |
(22,684 | ) | (22,755 | ) | ||||
Net income |
67,859 | 14,023 | ||||||
Total changes in net assets |
45,176 | (8,732 | ) | |||||
Balance, March 31, 2009 |
¥ | 733,523 | ¥ | 724,791 | ||||
36
STATEMENT OF CHANGES IN NET ASSETS
(Yen in millions) | ||||||||
Years ended March 31, | ||||||||
2008 | 2009 | |||||||
Treasury stock |
||||||||
Balance, March 31, 2008 |
¥ | (21,855 | ) | ¥ | (15,289 | ) | ||
Changes in net assets |
||||||||
Purchase of treasury stock |
(211 | ) | (38,219 | ) | ||||
Reissuance of treasury stock |
6,777 | 2,940 | ||||||
Total changes in net assets |
6,566 | (35,279 | ) | |||||
Balance, March 31, 2009 |
(15,289 | ) | (50,568 | ) | ||||
Total Stockholders equity |
||||||||
Balance, March 31, 2008 |
974,877 | 1,026,873 | ||||||
Changes in net assets |
||||||||
Dividends |
(22,684 | ) | (22,755 | ) | ||||
Net income |
67,859 | 14,023 | ||||||
Purchase of treasury stock |
(211 | ) | (38,219 | ) | ||||
Reissuance of treasury stock |
7,031 | 3,045 | ||||||
Total changes in net assets |
51,996 | (43,906 | ) | |||||
Balance, March 31, 2009 |
1,026,873 | 982,967 | ||||||
Difference of appreciation and conversion |
||||||||
Net unrealized gains on other securities |
||||||||
Balance, March 31, 2008 |
311,484 | 192,542 | ||||||
Changes in net assets |
||||||||
Net change in items other than stockholders equity |
(118,942 | ) | (56,895 | ) | ||||
Total changes in net assets |
(118,942 | ) | (56,895 | ) | ||||
Balance, March 31, 2009 |
192,542 | 135,647 | ||||||
Total unrealized gain(loss) on apprciation and conversion |
||||||||
Balance, March 31, 2008 |
311,484 | 192,542 | ||||||
Changes in net assets |
||||||||
Net change in items other than stockholders equity |
(118,942 | ) | (56,895 | ) | ||||
Total changes in net assets |
(118,942 | ) | (56,895 | ) | ||||
Balance, March 31, 2009 |
192,542 | 135,647 | ||||||
Total net assets |
||||||||
Balance, March 31, 2008 |
1,286,361 | 1,219,415 | ||||||
Changes in net assets |
||||||||
Dividends |
(22,684 | ) | (22,755 | ) | ||||
Net income |
67,859 | 14,023 | ||||||
Purchase of treasury stock |
(211 | ) | (38,219 | ) | ||||
Reissuance of treasury stock |
7,031 | 3,045 | ||||||
Net change in items other than stockholders equity |
(118,942 | ) | (56,895 | ) | ||||
Total changes in net assets |
(66,946 | ) | (100,801 | ) | ||||
Balance, March 31, 2009 |
¥ | 1,219,415 | ¥ | 1,118,614 | ||||
37
APPENDIX
1. Change in Directors :
This information was disclosed in Form 6-K as of February 17, 2009 and March 30, 2009.
2. Consolidated Production and Orders by Reporting Segment :
Consolidated Production by Reporting Segment
(Yen in millions) | |||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||
2008 | 2009 | ||||||||||||
Amount | % | Amount | % | ||||||||||
Fine Ceramic Parts Group |
¥ | 81,683 | 6.4 | ¥ | 60,550 | 5.6 | (25.9 | ) | |||||
Semiconductor Parts Group |
155,949 | 12.3 | 132,730 | 12.2 | (14.9 | ) | |||||||
Applied Ceramic Products Group |
155,933 | 12.3 | 152,532 | 14.0 | (2.2 | ) | |||||||
Electronic Device Group |
285,901 | 22.6 | 215,548 | 19.9 | (24.6 | ) | |||||||
Total Components Business |
679,466 | 53.6 | 561,360 | 51.7 | (17.4 | ) | |||||||
Telecommunications Equipment Group |
215,282 | 17.0 | 210,241 | 19.4 | (2.3 | ) | |||||||
Information Equipment Group |
270,120 | 21.3 | 224,239 | 20.6 | (17.0 | ) | |||||||
Total Equipment Business |
485,402 | 38.3 | 434,480 | 40.0 | (10.5 | ) | |||||||
Others |
103,369 | 8.1 | 89,529 | 8.3 | (13.4 | ) | |||||||
Production |
¥ | 1,268,237 | 100.0 | ¥ | 1,085,369 | 100.0 | (14.4 | ) | |||||
38
Consolidated Orders by Reporting Segment
(Yen in millions) | |||||||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||||||
2008 | 2009 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Fine Ceramic Parts Group |
¥ | 82,028 | 6.4 | ¥ | 57,633 | 5.3 | (29.7 | ) | |||||||||
Semiconductor Parts Group |
155,057 | 12.1 | 128,948 | 11.7 | (16.8 | ) | |||||||||||
Applied Ceramic Products Group |
152,617 | 11.9 | 148,386 | 13.5 | (2.8 | ) | |||||||||||
Electronic Device Group |
298,144 | 23.2 | 222,362 | 20.3 | (25.4 | ) | |||||||||||
Total Components Business |
687,846 | 53.6 | 557,329 | 50.8 | (19.0 | ) | |||||||||||
Telecommunications Equipment Group |
207,885 | 16.2 | 214,213 | 19.5 | 3.0 | ||||||||||||
Information Equipment Group |
276,712 | 21.5 | 222,894 | 20.3 | (19.4 | ) | |||||||||||
Total Equipment Business |
484,597 | 37.7 | 437,107 | 39.8 | (9.8 | ) | |||||||||||
Others |
135,495 | 10.6 | 123,389 | 11.2 | (8.9 | ) | |||||||||||
Adjustments and eliminations |
(24,048 | ) | (1.9 | ) | (20,315 | ) | (1.8 | ) | | ||||||||
Orders |
¥ | 1,283,890 | 100.0 | ¥ | 1,097,510 | 100.0 | (14.5 | ) | |||||||||
39