UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 6-K
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 2017
Commission File Number: 1-07952
KYOCERA CORPORATION
(Translation of registrants name into English)
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 ☒ 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): ☐
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 |
(Registrant) |
/s/ SHOICHI AOKI |
Shoichi Aoki |
Director, |
Managing Executive Officer and |
General Manager of |
Corporate Financial and Accounting Group |
Date: January 31, 2017
Information furnished on this form:
Exhibit |
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1. |
Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2016 |
Consolidated Financial Results of Kyocera Corporation and its Subsidiaries
for the Nine Months Ended December 31, 2016
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, 2016
(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 |
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Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||||||||
Nine months ended December 31, 2016 |
1,014,628 | (7.2 | ) | 67,102 | 1.6 | 98,706 | 1.4 | 70,852 | 19.1 | |||||||||||||||||||||||
Nine months ended December 31, 2015 |
1,093,030 | (0.8 | ) | 66,020 | (26.8 | ) | 97,390 | (15.1 | ) | 59,504 | (19.6 | ) |
(Note) Comprehensive income:
66,794 million yen for the nine months ended December 31, 2016, (58.2)% of change from previous period
159,836 million yen for the nine months ended December 31, 2015, (43.8)% 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 |
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Yen | Yen | |||||||||||||||
Nine months ended December 31, 2016 |
192.88 | 192.88 | ||||||||||||||
Nine months ended December 31, 2015 |
162.20 | 162.20 | ||||||||||||||
(2) Consolidated financial condition
|
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Total assets | Total equity | Kyocera Corporation shareholders equity |
Kyocera
Corporation shareholders equity to total assets |
|||||||||||||
Million yen | Million yen | Million yen | % | |||||||||||||
December 31, 2016 |
3,092,949 | 2,400,558 | 2,315,061 | 74.8 | ||||||||||||
March 31, 2016 |
3,095,049 | 2,373,762 | 2,284,264 | 73.8 |
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, 2016 |
| 50.00 | | 50.00 | 100.00 | |||||||||||||||
Year ending March 31, 2017 |
| 50.00 | | 50.00 | 100.00 |
Note:
Year-end and annual dividends per share for the year ending March 31, 2017 are the forecasts at the date of the submission of this report.
1
3. Consolidated Financial Forecasts for the Year Ending March 31, 2017
(% 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, 2017 |
1,410,000 | (4.7) | 95,000 | 2.5 | 130,000 | (10.7) | 90,000 | (17.5) | 245.01 |
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, 2016.
Notes:
(1) Increase or decrease in significant subsidiaries during the nine months ended December 31, 2016: Not applicable
(2) Adoption of concise quarterly accounting method or procedure: Not applicable
(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: Not applicable
Please refer to the accompanying 2. OTHER INFORMATION on page 10.
(4) Number of shares (common stock):
(i) Number of shares issued:
377,618,580 shares at December 31, 2016 |
377,618,580 shares at March 31, 2016 |
(ii) Number of treasury stock:
9,904,600 shares at December 31, 2016 |
10,761,503 shares at March 31, 2016 |
(iii) Average number of shares outstanding:
367,333,543 shares for the nine months ended |
366,859,651 shares for the nine months ended |
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.
Other Note:
This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2016. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
2
Accompanying Information
1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS
(1) Business Results for the Nine Months Ended December 31, 2016
Economic Situation and Business Environment
During the nine months ended December 31, 2016 (the nine months), the Japanese economy recovered moderately, driven by improvement in exports and growing private-sector capital investment. Overseas, the U.S. economy expanded due mainly to an increase in personal consumption, while the European economy was sluggish. The growth rate in the Chinese economy continued to weaken despite an increase in sales of automobiles and houses. As for exchange rates for the nine months, the yen appreciated compared with the nine months ended December 31, 2015 (the previous nine months) despite sudden depreciation of the yen after the U.S. presidential election in November 2016.
With regard to the principal markets for Kyocera Corporation and its subsidiaries (Kyocera), the automotive market remained firm on the back of increased sales in China and Europe. In the information and communications markets, demand for miniaturized highly functional components increased, while stagnation in the growth rate of smartphone shipment volume continued. In the solar energy market, product prices continued to erode worldwide and demand in Japan decreased due to the impact of reduction in purchase price under feed-in tariff in Japan.
Consolidated Financial Results
Consolidated net sales for the nine months decreased by ¥78,402 million, or 7.2%, compared with the previous nine months to ¥1,014,628 million due mainly to the negative impact of the yens appreciation.
Profit from operations increased by ¥1,082 million, or 1.6%, to ¥67,102 million, compared with the previous nine months. Income before income taxes increased by ¥1,316 million, or 1.4%, to ¥98,706 million, and net income attributable to shareholders of Kyocera Corporation for the nine months increased by ¥11,348 million, or 19.1%, to ¥70,852 million, compared with the previous nine months.
Average exchange rates for the nine months were ¥107 to the U.S. dollar, marking appreciation of ¥15 (12.3%) and ¥118 to the Euro, marking appreciation of ¥16 (11.9%), from the previous nine months. As a result, net sales and income before income taxes after translation into yen for the nine months were pushed down by approximately ¥90 billion and approximately ¥23 billion, respectively, compared with the previous nine months.
Nine months ended December 31, | Increase (Decrease) |
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2015 | 2016 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
(Yen in millions, except exchange rates) | ||||||||||||||||||||||||
Net sales |
¥ | 1,093,030 | 100.0 | ¥ | 1,014,628 | 100.0 | ¥(78,402 | ) | (7.2 | ) | ||||||||||||||
Profit from operations |
66,020 | 6.0 | 67,102 | 6.6 | 1,082 | 1.6 | ||||||||||||||||||
Income before income taxes |
97,390 | 8.9 | 98,706 | 9.7 | 1,316 | 1.4 | ||||||||||||||||||
Net income attributable to shareholders of Kyocera Corporation |
59,504 | 5.4 | 70,852 | 7.0 | 11,348 | 19.1 | ||||||||||||||||||
Average US$ exchange rate |
122 | | 107 | | (15 | ) | (12.3 | ) | ||||||||||||||||
Average Euro exchange rate |
134 | | 118 | | (16 | ) | (11.9 | ) |
The negative impacts due to changes in foreign currency exchange rates for the nine months compared with the previous nine months
Net sales: |
approximately ¥90 billion | |||
Income before income taxes: |
approximately ¥23 billion |
3
Consolidated Results by Reporting Segment
1) Fine Ceramic Parts Group
Sales in this reporting segment slightly increased compared with the previous nine months due to an increase in sales of automotive components and components for semiconductor processing equipment, despite an inventory adjustment of components for smartphones such as inductor cores. Operating profit decreased compared with the previous nine months due mainly to the negative impact from the yens appreciation and higher R&D expenses.
2) Semiconductor Parts Group
Sales in this reporting segment slightly increased compared with the previous nine months because a substantial increase in sales of ceramic packages for optical communications, etc. was offset by sluggish demand in printed wiring boards for communications infrastructure. Operating profit decreased due to the absence of approximately ¥12 billion of a gain on the sale of assets recorded in the previous nine months, as well as to the negative impact of the yens appreciation and a decline in profit from the organic materials business.
3) Applied Ceramic Products Group
Sales in this reporting segment decreased compared with the previous nine months due to a decline in the sales of the solar energy business owing to sales price erosion and a decline in demand. Operating profit decreased due mainly to a decline in profit from the cutting tool business because of the negative impact of the yens appreciation.
4) Electronic Device Group
Sales in this reporting segment decreased compared with the previous nine months due to sales price erosion and the negative impact of the yens appreciation, despite increased demand for small-sized capacitors and crystal components. Operating profit increased, despite the decline in sales, due to the absence of approximately ¥18 billion of impairment losses on goodwill and other assets in the display business recorded in the previous nine months.
5) Telecommunications Equipment Group
Sales in this reporting segment decreased compared with the previous nine months due to a decline in sales volume resulting from a reduction in the production ratio of low-end mobile phones for the overseas market, which was based on Kyoceras product strategy specialized in distinctive mobile phones with high durability and other unique features. Although it was insufficient to offset accumulated loss for the six months up to September 30, 2016, operating profit was recorded in the three months ended December 31, 2016 as a result of product strategy and structural reforms.
6) Information Equipment Group
Sales in this reporting segment decreased compared with the previous nine months due to the negative impact of the yens appreciation even though the sales volume for equipment was solid on the back of aggressive sales activities for new products. Operating profit increased compared with the previous nine months, however, due to the effect of launch of new products and cost reductions resulting from, among others, an improvement in productivity.
4
Net Sales by Reporting Segment
Nine months ended December 31, | Increase (Decrease) |
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2015 | 2016 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
Fine Ceramic Parts Group |
¥ | 70,342 | 6.4 | ¥ | 71,027 | 7.0 | ¥ | 685 | 1.0 | |||||||||||||||
Semiconductor Parts Group |
180,125 | 16.5 | 181,309 | 17.8 | 1,184 | 0.7 | ||||||||||||||||||
Applied Ceramic Products Group |
177,763 | 16.3 | 159,166 | 15.7 | (18,597 | ) | (10.5 | ) | ||||||||||||||||
Electronic Device Group |
219,780 | 20.1 | 209,799 | 20.7 | (9,981 | ) | (4.5 | ) | ||||||||||||||||
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Total Components Business |
648,010 | 59.3 | 621,301 | 61.2 | (26,709 | ) | (4.1 | ) | ||||||||||||||||
Telecommunications Equipment Group |
124,178 | 11.4 | 99,018 | 9.8 | (25,160 | ) | (20.3 | ) | ||||||||||||||||
Information Equipment Group |
245,375 | 22.4 | 227,750 | 22.4 | (17,625 | ) | (7.2 | ) | ||||||||||||||||
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Total Equipment Business |
369,553 | 33.8 | 326,768 | 32.2 | (42,785 | ) | (11.6 | ) | ||||||||||||||||
Others |
106,855 | 9.8 | 96,446 | 9.5 | (10,409 | ) | (9.7 | ) | ||||||||||||||||
Adjustments and eliminations |
(31,388 | ) | (2.9 | ) | (29,887 | ) | (2.9 | ) | 1,501 | | ||||||||||||||
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Net sales |
¥ | 1,093,030 | 100.0 | ¥ | 1,014,628 | 100.0 | ¥ | (78,402 | ) | (7.2 | ) | |||||||||||||
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Operating Profit (Loss) by Reporting Segment
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Nine months ended December 31, | Increase (Decrease) |
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2015 | 2016 | |||||||||||||||||||||||
Amount | %* | Amount | %* | Amount | % | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
Fine Ceramic Parts Group |
¥ | 11,860 | 16.9 | ¥ | 9,678 | 13.6 | ¥ | (2,182 | ) | (18.4 | ) | |||||||||||||
Semiconductor Parts Group |
37,435 | 20.8 | 19,389 | 10.7 | (18,046 | ) | (48.2 | ) | ||||||||||||||||
Applied Ceramic Products Group |
12,498 | 7.0 | 9,258 | 5.8 | (3,240 | ) | (25.9 | ) | ||||||||||||||||
Electronic Device Group |
3,784 | 1.7 | 21,376 | 10.2 | 17,592 | 464.9 | ||||||||||||||||||
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Total Components Business |
65,577 | 10.1 | 59,701 | 9.6 | (5,876 | ) | (9.0 | ) | ||||||||||||||||
Telecommunications Equipment Group |
(3,945 | ) | | (4,246 | ) | | (301 | ) | | |||||||||||||||
Information Equipment Group |
17,484 | 7.1 | 20,041 | 8.8 | 2,557 | 14.6 | ||||||||||||||||||
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Total Equipment Business |
13,539 | 3.7 | 15,795 | 4.8 | 2,256 | 16.7 | ||||||||||||||||||
Others |
(1,988 | ) | | (2,708 | ) | | (720 | ) | | |||||||||||||||
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Operating profit |
77,128 | 7.1 | 72,788 | 7.2 | (4,340 | ) | (5.6 | ) | ||||||||||||||||
Corporate gains and equity in earnings (losses) of affiliates and an unconsolidated subsidiary |
20,250 | | 26,995 | | 6,745 | 33.3 | ||||||||||||||||||
Adjustments and eliminations |
12 | | (1,077 | ) | | (1,089 | ) | | ||||||||||||||||
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Income before income taxes |
¥ | 97,390 | 8.9 | ¥ | 98,706 | 9.7 | ¥ | 1,316 | 1.4 | |||||||||||||||
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* | % to net sales of each corresponding segment |
Note:
Kyocera Chemical Group, formerly included in Others until the year ended March 31, 2016, has been reclassified and included in the Semiconductor Parts Group commencing from the year ending March 31, 2017. Due to this change, results for the previous nine months have been reclassified to conform to the current presentation. As a result of this reclassification, a gain of approximately ¥12 billion from the sale of assets was included in the operating profit of the Semiconductor Parts Group for the previous nine months.
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 Telecommunications Equipment Group.
2) Asia
Sales in Asia decreased compared with the previous nine months due primarily to a decline in sales in the Semiconductor Parts Group and the Fine Ceramic Parts Group which were affected by the negative impact of the yens appreciation.
3) United States of America
Sales in the United States of America decreased compared with the previous nine months due mainly to the negative impact of the yens appreciation as well as to a decline in sales in the solar energy business.
4) Europe
Sales in Europe decreased compared with the previous nine months due mainly to a decline in sales in the Information Equipment Group and the Electronic Device Group which were affected by the negative impact of the yens appreciation.
5) Others
Sales in Others decreased compared with the previous nine months due mainly to a decline in sales in the Information Equipment Group and the Semiconductor Parts Group which were affected by the negative impact of the yens appreciation.
Nine months ended December 31, | Increase (Decrease) |
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2015 | 2016 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
Japan |
¥ | 432,440 | 39.6 | ¥ | 417,735 | 41.2 | ¥(14,705 | ) | (3.4 | ) | ||||||||||||||
Asia |
237,453 | 21.7 | 223,516 | 22.0 | (13,937 | ) | (5.9 | ) | ||||||||||||||||
United States of America |
191,704 | 17.5 | 169,137 | 16.7 | (22,567 | ) | (11.8 | ) | ||||||||||||||||
Europe |
185,550 | 17.0 | 163,275 | 16.1 | (22,275 | ) | (12.0 | ) | ||||||||||||||||
Others |
45,883 | 4.2 | 40,965 | 4.0 | (4,918 | ) | (10.7 | ) | ||||||||||||||||
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Net sales |
¥ | 1,093,030 | 100.0 | ¥ | 1,014,628 | 100.0 | ¥(78,402 | ) | (7.2 | ) | ||||||||||||||
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6
(2) Financial Condition
Consolidated Cash Flows
Cash and cash equivalents at December 31, 2016 decreased by ¥43,294 million to ¥330,726 million from ¥374,020 million at March 31, 2016.
1) Cash flows from operating activities
Net cash provided by operating activities for the nine months decreased by ¥20,480 million to ¥95,214 million from ¥115,694 million for the previous nine months. This was due mainly to that cash flow adjustments related to receivables and inventories exceeded an increase in net income.
2) Cash flows from investing activities
Net cash used in investing activities for the nine months increased by ¥32,969 million to ¥98,732 million from ¥65,763 million for the previous nine months. This mainly reflected that proceeds from sales of property, plant and equipment decreased and acquisition of time deposit exceeded its withdrawal although proceeds from sales and maturities of securities increased.
3) Cash flows from financing activities
Net cash used in financing activities for the nine months decreased by ¥854 million to ¥46,790 million from ¥47,644 million for the previous nine months. This was due mainly to a decrease in year-end dividends paid.
Nine months ended December 31, | Increase (Decrease) |
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2015 | 2016 | |||||||||||
(Yen in millions) | ||||||||||||
Cash flows from operating activities |
¥ | 115,694 | ¥ | 95,214 | ¥ | (20,480 | ) | |||||
Cash flows from investing activities |
(65,763 | ) | (98,732 | ) | (32,969 | ) | ||||||
Cash flows from financing activities |
(47,644 | ) | (46,790 | ) | 854 | |||||||
Effect of exchange rate changes on cash and cash equivalents |
(2,185 | ) | 7,014 | 9,199 | ||||||||
Net increase (decrease) in cash and cash equivalents |
102 | (43,294 | ) | (43,396 | ) | |||||||
Cash and cash equivalents at beginning of period |
351,363 | 374,020 | 22,657 | |||||||||
Cash and cash equivalents at end of period |
¥ | 351,465 | ¥ | 330,726 | ¥ | (20,739 | ) |
7
(3) Consolidated Financial Forecasts for the Year Ending March 31, 2017
Based on the current business environment, the forecast of consolidated performance for the year ending March 31, 2017 (fiscal 2017) has been revised as set forth in the table below. Sales in the solar energy business and the Electronic Device Group are expected to be lower than previous forecast due respectively to changes in the business environment in the North American market and slow demand in the Japanese market, and to an inventory adjustment in respect of print heads for industrial equipment, among others. Delays from the original plan in the launch of new products also affected performance of the Information Equipment Group. Due to such changes in business situation, consolidated net sales forecast for fiscal 2017 are expected to be lower than previous forecast. Therefore, profit from operation has also been revised along with sales forecast revision.
Taking into account performance for the nine months, Kyocera maintains its previous forecast of income before income taxes, while it has revised upward its forecast of net income attributable to shareholders of Kyocera Corporation for fiscal 2017. Forecast performance of each business segment has also been revised as set forth on the following page.
Kyocera will make efforts to increase sales and to achieve comprehensive cost reductions in order to achieve the forecast performance for fiscal 2017.
Results for the year ended March 31, 2016 |
Forecasts for the year ending March 31, 2017 announced on |
Increase (Decrease) to Results |
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October 31,
2016 (Previous) |
January 31,
2017 (Revised) |
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Amount | % | Amount | % | Amount | % | % | ||||||||||||||||||||||
(Yen in millions, except exchange rates) | ||||||||||||||||||||||||||||
Net sales |
¥ | 1,479,627 | 100.0 | ¥ | 1,520,000 | 100.0 | ¥ | 1,410,000 | 100.0 | (4.7 | ) | |||||||||||||||||
Profit from operations |
92,656 | 6.3 | 110,000 | 7.2 | 95,000 | 6.7 | 2.5 | |||||||||||||||||||||
Income before income taxes |
145,583 | 9.8 | 130,000 | 8.6 | 130,000 | 9.2 | (10.7 | ) | ||||||||||||||||||||
Net income attributable to shareholders of Kyocera Corporation |
109,047 | 7.4 | 85,000 | 5.6 | 90,000 | 6.4 | (17.5 | ) | ||||||||||||||||||||
Average US$ exchange rate |
120 | | 104 | | 108 | | | |||||||||||||||||||||
Average Euro exchange rate |
133 | | 115 | | 119 | | |
8
Net Sales by Reporting Segment
Results for the year ended March 31, 2016 |
Forecasts for the year ending March 31, 2017 announced on |
Increase (Decrease) to Results |
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October 31,
2016 (Previous) |
January 31,
2017 (Revised) |
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Amount | % | Amount | % | Amount | % | % | ||||||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||
Fine Ceramic Parts Group |
¥ | 95,092 | 6.4 | ¥ | 101,000 | 6.7 | ¥ | 96,000 | 6.8 | 1.0 | ||||||||||||||||||
Semiconductor Parts Group |
236,265 | 16.0 | 237,000 | 15.6 | 240,000 | 17.0 | 1.6 | |||||||||||||||||||||
Applied Ceramic Products Group |
247,516 | 16.7 | 263,000 | 17.3 | 224,000 | 15.9 | (9.5 | ) | ||||||||||||||||||||
Electronic Device Group |
290,902 | 19.7 | 304,000 | 20.0 | 286,000 | 20.3 | (1.7 | ) | ||||||||||||||||||||
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Total Components Business |
869,775 | 58.8 | 905,000 | 59.6 | 846,000 | 60.0 | (2.7 | ) | ||||||||||||||||||||
Telecommunications Equipment Group |
170,983 | 11.6 | 152,000 | 10.0 | 142,000 | 10.1 | (17.0 | ) | ||||||||||||||||||||
Information Equipment Group |
336,308 | 22.7 | 344,000 | 22.6 | 325,000 | 23.0 | (3.4 | ) | ||||||||||||||||||||
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Total Equipment Business |
507,291 | 34.3 | 496,000 | 32.6 | 467,000 | 33.1 | (7.9 | ) | ||||||||||||||||||||
Others |
146,897 | 9.9 | 154,000 | 10.1 | 136,000 | 9.7 | (7.4 | ) | ||||||||||||||||||||
Adjustments and eliminations |
(44,336 | ) | (3.0 | ) | (35,000 | ) | (2.3 | ) | (39,000 | ) | (2.8 | ) | | |||||||||||||||
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Net sales |
¥ | 1,479,627 | 100.0 | ¥ | 1,520,000 | 100.0 | ¥ | 1,410,000 | 100.0 | (4.7 | ) | |||||||||||||||||
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Operating Profit (Loss) by Reporting Segment | ||||||||||||||||||||||||||||
Results for the year ended March 31, 2016 |
Forecasts for the year ending March 31, 2017 announced on |
Increase (Decrease) to Results |
||||||||||||||||||||||||||
October 31,
2016 (Previous) |
January 31,
2017 (Revised) |
|||||||||||||||||||||||||||
Amount | %* | Amount | %* | Amount | %* | % | ||||||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||
Fine Ceramic Parts Group |
¥ | 15,745 | 16.6 | ¥ | 15,000 | 14.9 | ¥ | 13,500 | 14.1 | (14.3 | ) | |||||||||||||||||
Semiconductor Parts Group |
42,232 | 17.9 | 26,000 | 11.0 | 25,200 | 10.5 | (40.3 | ) | ||||||||||||||||||||
Applied Ceramic Products Group |
16,386 | 6.6 | 20,000 | 7.6 | 14,100 | 6.3 | (14.0 | ) | ||||||||||||||||||||
Electronic Device Group |
10,974 | 3.8 | 38,000 | 12.5 | 29,000 | 10.1 | 164.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Components Business |
85,337 | 9.8 | 99,000 | 10.9 | 81,800 | 9.7 | (4.1 | ) | ||||||||||||||||||||
Telecommunications Equipment Group |
(4,558 | ) | | 4,200 | 2.8 | 1,000 | 0.7 | | ||||||||||||||||||||
Information Equipment Group |
27,106 | 8.1 | 23,000 | 6.7 | 26,100 | 8.0 | (3.7 | ) | ||||||||||||||||||||
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|
|
|
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|
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|
|
|
|||||||||||||||
Total Equipment Business |
22,548 | 4.4 | 27,200 | 5.5 | 27,100 | 5.8 | 20.2 | |||||||||||||||||||||
Others |
(1,722 | ) | | (6,000 | ) | | (2,700 | ) | | | ||||||||||||||||||
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|
|
|||||||||||||||
Operating profit |
106,163 | 7.2 | 120,200 | 7.9 | 106,200 | 7.5 | 0.0 | |||||||||||||||||||||
Corporate and others |
39,420 | | 9,800 | | 23,800 | | (39.6 | ) | ||||||||||||||||||||
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|
|
|||||||||||||||
Income before income taxes |
¥ | 145,583 | 9.8 | ¥ | 130,000 | 8.6 | ¥ | 130,000 | 9.2 | (10.7 | ) | |||||||||||||||||
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|
* | % to net sales of each corresponding segment |
Note:
Kyocera Chemical Group, formerly included in Others until the year ended March 31, 2016, has been reclassified and included in the Semiconductor Parts Group commencing from the year ending March 31, 2017. Due to this change, results for the year ended March 31, 2016 have been reclassified to conform to the current presentation. As a result of this reclassification, a gain of approximately ¥12 billion from the sale of assets was included in the operating profit of the Semiconductor Parts Group for the year ended March 31, 2016.
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.
2. OTHER INFORMATION
Changes in accounting policies
Recently Adopted Accounting Standards
The accounting standards which Kyocera adopted on or after April 1, 2016 did not have material impacts on Kyoceras consolidated results of operations, financial condition and cash flows.
10
3. CONSOLIDATED FINANCIAL STATEMENTS
(1) Consolidated Balance Sheets (Unaudited)
March 31, 2016 | December 31, 2016 | Increase (Decrease) |
||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||
(Yen in millions) | ||||||||||||||||||||
Current assets: |
||||||||||||||||||||
Cash and cash equivalents |
¥ | 374,020 | ¥ | 330,726 | ¥ | (43,294 | ) | |||||||||||||
Short-term investments in debt securities |
101,566 | 81,867 | (19,699 | ) | ||||||||||||||||
Other short-term investments |
213,613 | 240,702 | 27,089 | |||||||||||||||||
Trade notes receivables |
22,832 | 27,265 | 4,433 | |||||||||||||||||
Trade accounts receivables |
266,462 | 272,583 | 6,121 | |||||||||||||||||
Less allowances for doubtful accounts and sales returns |
(5,278 | ) | (6,129 | ) | (851 | ) | ||||||||||||||
Inventories |
327,875 | 356,547 | 28,672 | |||||||||||||||||
Other current assets |
133,671 | 120,815 | (12,856 | ) | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Total current assets |
1,434,761 | 46.4 | 1,424,376 | 46.1 | (10,385 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-current assets: |
||||||||||||||||||||
Investments and advances: |
||||||||||||||||||||
Long-term investments in debt and equity securities |
1,131,403 | 1,124,154 | (7,249 | ) | ||||||||||||||||
Other long-term investments |
20,130 | 23,364 | 3,234 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total investments and advances |
1,151,533 | 37.2 | 1,147,518 | 37.1 | (4,015 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Property, plant and equipment: |
||||||||||||||||||||
Land |
59,914 | 60,094 | 180 | |||||||||||||||||
Buildings |
344,087 | 347,626 | 3,539 | |||||||||||||||||
Machinery and equipment |
841,895 | 857,789 | 15,894 | |||||||||||||||||
Construction in progress |
18,314 | 15,912 | (2,402 | ) | ||||||||||||||||
Less accumulated depreciation |
(999,723 | ) | (1,012,337 | ) | (12,614 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total property, plant and equipment |
264,487 | 8.5 | 269,084 | 8.7 | 4,597 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Goodwill |
102,599 | 3.3 | 116,583 | 3.8 | 13,984 | |||||||||||||||
Intangible assets |
59,106 | 1.9 | 56,126 | 1.8 | (2,980 | ) | ||||||||||||||
Other assets |
82,563 | 2.7 | 79,262 | 2.5 | (3,301 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-current assets |
1,660,288 | 53.6 | 1,668,573 | 53.9 | 8,285 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
¥ | 3,095,049 | 100.0 | ¥ | 3,092,949 | 100.0 | ¥ | (2,100 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
11
March 31, 2016 | December 31, 2016 | Increase (Decrease) |
||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||
(Yen in millions) | ||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||
Short-term borrowings |
¥ | 5,119 | ¥ | 207 | ¥ | (4,912 | ) | |||||||||||||
Current portion of long-term debt |
9,516 | 8,507 | (1,009 | ) | ||||||||||||||||
Trade notes and accounts payable |
115,644 | 122,843 | 7,199 | |||||||||||||||||
Other notes and accounts payable |
82,758 | 56,108 | (26,650 | ) | ||||||||||||||||
Accrued payroll and bonus |
59,959 | 51,302 | (8,657 | ) | ||||||||||||||||
Accrued income taxes |
22,847 | 11,507 | (11,340 | ) | ||||||||||||||||
Other accrued liabilities |
43,525 | 49,982 | 6,457 | |||||||||||||||||
Other current liabilities |
28,464 | 50,805 | 22,341 | |||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Total current liabilities |
367,832 | 11.9 | 351,261 | 11.4 | (16,571 | ) | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Non-current liabilities: |
||||||||||||||||||||
Long-term debt |
18,115 | 16,656 | (1,459 | ) | ||||||||||||||||
Accrued pension and severance liabilities |
46,101 | 43,488 | (2,613 | ) | ||||||||||||||||
Deferred income taxes |
271,220 | 261,921 | (9,299 | ) | ||||||||||||||||
Other non-current liabilities |
18,019 | 19,065 | 1,046 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-current liabilities |
353,455 | 11.4 | 341,130 | 11.0 | (12,325 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
721,287 | 23.3 | 692,391 | 22.4 | (28,896 | ) | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Kyocera Corporation shareholders equity: |
||||||||||||||||||||
Common stock |
115,703 | 115,703 | | |||||||||||||||||
Additional paid-in capital |
162,844 | 165,210 | 2,366 | |||||||||||||||||
Retained earnings |
1,571,002 | 1,605,125 | 34,123 | |||||||||||||||||
Accumulated other comprehensive income |
469,803 | 461,322 | (8,481 | ) | ||||||||||||||||
Common stock in treasury, at cost |
(35,088 | ) | (32,299 | ) | 2,789 | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Total Kyocera Corporation shareholders equity |
2,284,264 | 73.8 | 2,315,061 | 74.8 | 30,797 | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Noncontrolling interests |
89,498 | 2.9 | 85,497 | 2.8 | (4,001 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total equity |
2,373,762 | 76.7 | 2,400,558 | 77.6 | 26,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
¥ | 3,095,049 | 100.0 | ¥ | 3,092,949 | 100.0 | ¥ | (2,100 | ) | |||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Note: Accumulated other comprehensive income is as follows:
|
|
|||||||||||||||||||
March 31, 2016 | December 31, 2016 | Increase (Decrease) |
||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||
Net unrealized gains on securities |
¥517,190 | ¥507,718 | ¥ | (9,472 | ) | |||||||||||||||
Net unrealized losses on derivative financial instruments |
(488 | ) | (634 | ) | (146 | ) | ||||||||||||||
Pension adjustments |
(42,648 | ) | (43,178 | ) | (530 | ) | ||||||||||||||
Foreign currency translation adjustments |
(4,251 | ) | (2,584 | ) | 1,667 | |||||||||||||||
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|
|
|
|
|
|||||||||||||||
Total |
¥469,803 | ¥461,322 | ¥ | (8,481 | ) | |||||||||||||||
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|
|
|
|
12
(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)
Consolidated Statements of Income
Nine months ended December 31, | Increase (Decrease) |
|||||||||||||||||||||||
2015 | 2016 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
(Yen in millions and shares in thousands, except per share amounts) | ||||||||||||||||||||||||
Net sales |
¥ | 1,093,030 | 100.0 | ¥ | 1,014,628 | 100.0 | ¥ | (78,402 | ) | (7.2 | ) | |||||||||||||
Cost of sales |
803,743 | 73.5 | 751,398 | 74.1 | (52,345 | ) | (6.5 | ) | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
289,287 | 26.5 | 263,230 | 25.9 | (26,057 | ) | (9.0 | ) | ||||||||||||||||
Selling, general and administrative expenses |
209,124 | 19.2 | 196,128 | 19.3 | (12,996 | ) | (6.2 | ) | ||||||||||||||||
Loss on impairment of goodwill |
14,143 | 1.3 | | | (14,143 | ) | | |||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit from operations |
66,020 | 6.0 | 67,102 | 6.6 | 1,082 | 1.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other income (expenses) : |
||||||||||||||||||||||||
Interest and dividend income |
27,260 | 2.5 | 30,904 | 3.0 | 3,644 | 13.4 | ||||||||||||||||||
Interest expense |
(1,098 | ) | (0.1 | ) | (566 | ) | (0.1 | ) | 532 | | ||||||||||||||
Foreign currency transaction gains, net |
3,343 | 0.3 | 553 | 0.1 | (2,790 | ) | (83.5 | ) | ||||||||||||||||
Gains on sales of securities |
277 | 0.0 | 103 | 0.0 | (174 | ) | (62.8 | ) | ||||||||||||||||
Other, net |
1,588 | 0.2 | 610 | 0.1 | (978 | ) | (61.6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other income (expenses) |
31,370 | 2.9 | 31,604 | 3.1 | 234 | 0.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before income taxes |
97,390 | 8.9 | 98,706 | 9.7 | 1,316 | 1.4 | ||||||||||||||||||
Income taxes |
34,362 | 3.1 | 24,235 | 2.4 | (10,127 | ) | (29.5 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
63,028 | 5.8 | 74,471 | 7.3 | 11,443 | 18.2 | ||||||||||||||||||
Net income attributable to noncontrolling interests |
(3,524 | ) | (0.4 | ) | (3,619 | ) | (0.3 | ) | (95 | ) | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to shareholders of Kyocera Corporation |
¥ | 59,504 | 5.4 | ¥ | 70,852 | 7.0 | ¥ | 11,348 | 19.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Per share information: |
||||||||||||||||||||||||
Net income attributable to shareholders of |
||||||||||||||||||||||||
Basic |
¥ | 162.20 | ¥ | 192.88 | ||||||||||||||||||||
Diluted |
162.20 | 192.88 | ||||||||||||||||||||||
Average number of shares of common stock outstanding: |
||||||||||||||||||||||||
Basic |
366,860 | 367,334 | ||||||||||||||||||||||
Diluted |
366,860 | 367,334 |
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 (Decrease) |
|||||||||||
2015 | 2016 | |||||||||||
Amount | Amount | Amount | ||||||||||
(Yen in millions) | ||||||||||||
Net income |
¥ | 63,028 | ¥ | 74,471 | ¥ | 11,443 | ||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss)net of taxes |
||||||||||||
Net unrealized gains (losses) on securities |
102,450 | (9,529 | ) | (111,979 | ) | |||||||
Net unrealized losses on derivative financial instruments |
(86 | ) | (207 | ) | (121 | ) | ||||||
Pension adjustments |
(1,007 | ) | (597 | ) | 410 | |||||||
Foreign currency translation adjustments |
(4,549 | ) | 2,656 | 7,205 | ||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss) |
96,808 | (7,677 | ) | (104,485 | ) | |||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
159,836 | 66,794 | (93,042 | ) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests |
(3,677 | ) | (4,351 | ) | (674 | ) | ||||||
|
|
|
|
|
|
|||||||
Comprehensive income attributable to shareholders of |
¥ | 156,159 | ¥ | 62,443 | ¥ | (93,716 | ) | |||||
|
|
|
|
|
|
(3) Notes to the consolidated financial statements
Cautionary Statement for Premise of a Going Concern
Not applicable.
Cautionary Statement for Significant Changes in Equity
Not applicable.
14