Kyocera Corporation · TSE:6971
Kyocera — FY2014 Earnings Presentation
31 slides from Kyocera's earnings presentation, May 7, 2014
Slide 1: Financial Presentation
May 7, 2014 Financial Presentation Goro Yamaguchi President and Representative Director
Slide 2: Today's Presentation
Today’s Presentation 1. Financial Results for the Year Ended March 31, 2014 2. Financial Forecast for the Year Ending March 31, 2015
Slide 3: 1. Financial Results for the Year Ended March 31, 2014
1. Financial Results for the Year Ended March 31, 2014
Slide 4: Financial Results for the Year Ended March 31, 2014
Financial Results for the Year Ended March 31, 2014 (Unit: Yen in millions) Years ended March 31, Change 2013 2014 Amount % to net sales Amount % to n e t sa l e s Amount % Net sales 1,280,054 100.0% 1,447,369 100.0% 167,315 13.1% Profit from operations 76,926 6.0% 120,582 8.3% 43,656 56.8% Pre-tax
Slide 5: Sales Trend
Sales Trend (Unit: Yen in billions) Posted new record high in net sales Record high sales 1,447.4 1,290.4 1,266.9 1,280.1 1,190.9 1,128.6 1,073.8 FY3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 2
Slide 6: Pre-Tax Income and Pre-Tax Income Ratio Trends
Pre-Tax Income and Pre-Tax Income Ratio Trends Secured double-digit pre-tax income ratio (Unit: Yen in billions) 174.8 172.3 146.3 114.9 101.4 13.5% 13.6% 60.8 56.0 10.1% 9.6% 7.9% 5.7% 5.0% FY3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3
Slide 7: One-Time Charges in FY3/2014
One-Time Charges in FY3/2014 Implemented structural reforms in the Electronic Device Group Net sales and operating profit of Electronic Device Group FY3/2014: ＋4.7% (Unit: Yen in billions) Recorded structural reform 271.6 284.3 charges of approx. ¥5 billion Recorded charges in line with a scaling
Slide 8: Sales by Reporting Segment for the Year Ended March 31, 2014
Sales by Reporting Segment for the Year Ended March 31, 2014 (Unit: Yen in millions) Years ended March 31, Change 2013 2014 Amount % of net sales Amount % of net s ales Amount % Fine Ceramic Parts Group 74,852 5.9% 80,020 5.5% 5,168 6.9% Semiconductor Parts Group 167,241 13.1% 187,891 13.0% 20,650 1
Slide 9: Operating Profit by Reporting Segment for the Year Ended March 31, 2014
Operating Profit by Reporting Segment for the Year Ended March 31, 2014 (Unit: Yen in millions) Years ended March 31, Change 2013 2014 Amount % to net sales Amount % t o net s ales Amount % Fine Ceramic Parts Group 7,614 10.2% 11,836 14.8% 4,222 55.5% Semiconductor Parts Group 30,379 18.2% 31,889 17
Slide 10: 2. Financial Forecast for the Year Ending March 31, 2015
2. Financial Forecast for the Year Ending March 31, 2015
Slide 11: Business Environment Outlook for FY3/2015: Digital Consumer Equipment
Business Environment Outlook for FY3/2015 Major Market (1) : Digital Consumer Equipment Market Mobile phone handsets PCs/Tablets (Unit: billions) Feature phones (Unit: millions) PCs Smartphones Tablets 2 700 1.80 1.73 598 1.66 538 473 1 350 0 0 CY 2012 2013 2014 (Forecast) CY 2012 2013 2014 (Forecas
Slide 12: Business Environment Outlook for FY3/2015: Automobiles and Solar
Business Environment Outlook for FY3/2015 Major Market (2) : Automobiles and Solar Markets Automobiles Solar Modules (Unit: millions) (GW) 100 50 Japan 43.2 83.2 85.4 79.6 Outside Japan 38.1 28.9 50 25 0 0 CY 2012 2013 2014 (Forecast) FY3/2013 3/2014 3/2015 (Forecast) CY2014 Total: ＋13％ compared wit
Slide 13: Financial Forecast for the Year Ending March 31, 2015 (1)
Financial Forecast for the Year Ending March 31, 2015 (1) (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2014 2015 Amount % to net sales Amount % to n e t sa l e s Amount % Net sales 1,447,369 100.0% 1,580,000 100.0% 132,631 9.2% Profit from operations 120,582 8.3% 135,000
Slide 14: Financial Forecast for the Year Ending March 31, 2015 (2)
Financial Forecast for the Year Ending March 31, 2015 (2) Post Record Sales for 2nd Year Running Entrench Double-Digit Profit Ratio ＜Net sales＞ ＜Pre-tax income/ profit ratio＞ (Unit: Yen in billions) (Unit: Yen in billions) 1,580.0 1,447.4 1,280.1 158.0 146.3 101.4 10.1% 10.0% 7.9% FY3/2013 3/2014 3/
Slide 15: Sales Forecast by Reporting Segment
Sales Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2014 2015 Amount % of net sales Amount % of net s ales Amount % Fine Ceramic Parts Group 80,020 5.5% 91,000 5.7% 10,980 13.7% Semiconductor Parts Group 187,891 13.0% 224,000 14.2% 36,109 19.
Slide 16: Operating Profit Forecast by Reporting Segment
Operating Profit Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2014 2015 Amount % to net sales Amount % t o net s ales Amount % Fine Ceramic Parts Group 11,836 14.8% 13,700 15.1% 1,864 15.7% Semiconductor Parts Group 31,889 17.0% 33,600 15.0%
Slide 17: Semiconductor Parts Group
Semiconductor Parts Group (Unit: Yen in billions) Sales Forecast of Semiconductor Parts Group ＋19% 224.0 ＋12% 187.9 167.2 FY3/2013 3/2014 3/2015（Forecast） Please refer to forward-looking statements on the final page. 13
Slide 18: Expand Organic Substrate Business
Expand Organic Substrate Business ・Increase sales in markets for information and communications infrastructure equipment and mobile communication terminals ・Increase sales in overseas markets Sales Trend in Organic Substrate Business Approx. (FY3/2013 shown as standard of 100) +50% 2nd facility at M
Slide 19: Expand Ceramic Package Business
Expand Ceramic Package Business Strengthen cost competitiveness and increase sales in new fields Sales Trend in Ceramic Package Business (FY3/2013 shown as standard of 100) Approx. +10% 100 Packages for LEDs ・Increase sales of packages Packages for crystal/SAW for LEDs devices ・Promote application o
Slide 20: Applied Ceramic Products Group
Applied Ceramic Products Group (Unit: Yen in billions) Sales forecast of Applied Ceramic Products Group ＋11% 303.0 ＋29% 272.8 211.4 FY3/2013 3/2014 3/2015 (Forecast) Please refer to forward-looking statements on the final page. 16
Slide 21: Expand Solar Energy Business
Expand Solar Energy Business Increase business, mainly in Japanese market (GW) Solar energy market in Japan (GW) Production volume of Kyocera’s solar modules 10 9.3 2 Residential 9.0 Commercial ＋17% 3.5 1.4 3.5 ＋50% 1.2 5 5.8 1 5.5 3.8 0.8 1.9 1.9 0 0 FY3/2013 3/2014 3/2015 FY3/2013 3/2014 3/2015 (F
Slide 22: Development in Commercial Market
Development in Commercial Market Integrated capabilities from high-quality modules and Kyocera Sales in Solar Energy Business for Japanese Market EPC* to power generation projects (FY3/2014 shown as standard of 100) Kyocera Group companies EPC* Modules Systems 100 Power generation business Residenti
Slide 23: Development in Residential Market
Development in Residential Market Increase sales of systems that include storage battery and HEMS Sales Trend in Japanese Residential Market (FY3/2013 shown as standard of 100) 100 Li-ion battery HEMS FY3/2013 3/2014 3/2015 (Forecast) Enhance product line-up Kyocera’s first monocrystalline silicon s
Slide 24: Electronic Device Group
Electronic Device Group (Unit: Yen in billions) Financial Trends of Electronic Device Group 284.3 291.0 271.6 9.9% 7.4% Net sales Operating profit Operating profit ratio 28.9 21.2 -4.0 -1.5% FY3/2013 3/2014 3/2015 (Forecast) FY3/2013: FY3/2015: FY3/2014: Recorded ¥21.3 billion as Forecast a marked i
Slide 25: Expand Sales in Display Business
Expand Sales in Display Business Increase sales, mainly in automotive market Sales Target in Display Business (FY3/2014 shown as standard of 100) Strengthen customer base and increase sales to automotive related manufacturers beginning with Europe 100 Specialize in small to medium size and handl
Slide 26: Information Equipment Group
Information Equipment Group Exceed market growth by actively increasing sales and meeting rising production Sales Trends of Printer and MFP (FY3/2013 shown as standard of 100) Sales Trends of Information Equipment Group Approx. Approx. (Unit: Yen in billions) 140 ＋20%* +9% 335.0 307.8 Kyocera Emergi
Slide 27: Management Objectives
Management Objectives Aim for double-digit sales growth annually and double-digit pre-tax income ratio Net sales Sales growth of Trends of Net Sales and Pre-tax profit ratio (Trillion yen) more than 10% Pre-Tax Profit Ratio annually 2 30% 20% 1 13.5% 13.6% 12.2% 10.0% 9.6% 10.1% 10.0% 7.9% 10% 5.7%
Slide 28: Expand Business in Key Markets
Expand Business in Key Markets Basic Policy Expand sales in Create new Thoroughly existing businesses reduce costs businesses Key Markets Communi- Environment Automotive Medical cations and energy Please refer to forward-looking statements on the final page. 24
Slide 29: Expand Business in Automotive Related Markets
Expand Business in Automotive Related Markets Aim for sales of ¥300 billion in FY3/2017 Sales for Automotive Related Market (Unit: Yen in billions) 300 LCDs Camera modules Connectors Capacitors Crystal oscillator 2x Ceramic Glow plugs packages for sensors 1.6x 150 Multilayer piezo Ceramic packages f
Slide 30: Expand Business in Environment and Energy Market
Expand Business in Environment and Energy Market Aim to increase sales by at least 15% YoY, focused on solar power generating systems Sales for Environment and Energy Market Commercial Solar panels (Unit: Yen in billions) Over ＋15％ Design Procurement 250 ＋40％ Construction Maintenance 200 Solar power
Slide 31: Forward-Looking Statements
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.