Kyocera Corporation · TSE:6971
Kyocera — 1H FY2025 Earnings Presentation
37 slides from Kyocera's earnings presentation, Oct 30, 2024
Slide 1: Financial Presentation for the Six Months Ended September 30, 2024
Financial Presentation for the Six Months Ended September 30, 2024 October 30, 2024 Hideo Tanimoto President and Representative Director © 2024 KYOCERA Corporation
Slide 2: Agenda
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value Notes: This is an English translation of the Japanese orig
Slide 3: Agenda: Financial Results for 1H of Fiscal 2025
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value Note: Kyocera decided to change the classification of Ener
Slide 4: Financial Results for 1H of Fiscal 2025 (1)
Financial Results for 1H of Fiscal 2025 (1) (Unit: Yen in millions) Fiscal 2024 Fiscal 2025 Change 1H 1H Amount % Sales Revenue 985,290 998,588 13,298 1.3% 54,002 37,876 -16,126 -29.9% Operating Profit (5.5%) (3.8%) Profit Before 77,867 51,820 -26,047 -33.5% Income Taxes (7.9%) (5.2%) Profit Attribu
Slide 5: Financial Results for 1H of Fiscal 2025 (2)
Financial Results for 1H of Fiscal 2025 (2) (Unit: Yen in millions) Fiscal 2024 Fiscal 2025 Change 1H 1H Amount % Capital 65,963 68,933 2,970 4.5% Expenditures (6.7%) (6.9%) Depreciation Charge of 54,077 57,154 3,077 5.7% Property, Plant and (5.5%) (5.7%) Equipment 50,757 57,932 7,175 14.1% R&D Expe
Slide 6: Sales Revenue by Reporting Segment
Sales Revenue by Reporting Segment for 1H of Fiscal 2025 (Unit: Yen in millions) Sales Revenue by Fiscal 2024 1H Fiscal 2025 1H Change Component Component Reporting Segment Amount Ratio Amount Ratio Amount % Core Components Business 282,402 28.7% 281,678 28.2% -724 -0.3% Industrial & Automotive Comp
Slide 7: Business Profit (Loss) by Reporting Segment
Business Profit (Loss) by Reporting Segment for 1H of Fiscal 2025 (Unit: Yen in millions) Business Profit by Fiscal 2024 1H Fiscal 2025 1H Change % to Sales % to Sales Reporting Segment Amount Revenue Amount Revenue Amount % Core Components Business 30,466 10.8% 17,295 6.1% -13,171 -43.2% Industrial
Slide 8: Summary of Financial Results
Summary of Financial Results for 1H of Fiscal 2025 Sales Revenue Profit Before Income Taxes (Unit: Yen in billions) (Unit: Yen in billions) 985.3 . ～Fiscal 2024 Core Components Electronic 1H Business Components Solutions Business Others ～ ～ Fiscal 2025 1H Fiscal 2024 Core Components Electronic 1H Bu
Slide 9: Core Components Business: Financial Results by Reporting Segment
Core Components Financial Results by Reporting Segment for 1H of Fiscal 2025 Business 400.0 Sales Revenue 80.0 Business Profit (Ratio) (Unit: Yen in billions) (Unit: Yen in billions) 350.0 282.4 286.7 281.7 60.0 300.0 250.0 30.5 200.0 40.0 26.8 (10.8%) (9.3%) 17.3 150.0 (6.1%) 100.0 20.0 50.0 0.0 0.
Slide 10: Electronic Components Business: Financial Results by Reporting Segment
Electronic Financial Results by Reporting Segment for 1H of Fiscal 2025 Components Business Sales Revenue Business Profit/Loss (Ratio) (Unit: Yen in billions) (Unit: Yen in billions) 174.8 177.5 180.9 31.0 9.9 (5.6%) 11.0 -3.3 0.05 Fiscal 2024 Fiscal 2024 Fiscal 2025 -9.0 FY242024 Fiscal 1H FY242024
Slide 11: Solutions Business: Financial Results by Reporting Segment
Solutions Business Financial Results by Reporting Segment for 1H of Fiscal 2025 800.0 Sales Revenue 100.0 Business Profit (Ratio) 700.0 (Unit: Yen in billions) (Unit: Yen in billions) 564.5 546.2 80.0 600.0 537.1 500.0 60.0 38.5 400.0 31.4 33.3 (6.8%) 300.0 40.0 (5.8%) (6.1%) 200.0 20.0 100.0 0.0 0.
Slide 12: Agenda: Financial Forecasts for Fiscal 2025
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value Note: Kyocera decided to change the classification of Ener
Slide 13: Financial Forecasts for Fiscal 2025 (1)
Financial Forecasts for Fiscal 2025 (1) (Unit: Yen in millions) Change in amount Fiscal 2025 (Forecast) compared with Fiscal 2024 Previous Previous (Apr. 2024) Revised (Oct. 2024) Fiscal 2024 Forecast Sales Revenue 2,004,221 2,050,000 2,020,000 15,779 -30,000 Operating Profit 92,923 110,000 68,000 -
Slide 14: Financial Forecasts for Fiscal 2025 (2)
Financial Forecasts for Fiscal 2025 (2) (Unit: Yen in millions) Change in amount Fiscal 2025 (Forecast) compared with Fiscal 2024 Previous Previous (Apr. 2024) Revised (Oct. 2024) Fiscal 2024 Forecast Capital 161,684 200,000 160,000 -1,684 -40,000 Expenditures (8.1%) (9.8%) (7.9%) Depreciation Charg
Slide 15: Sales Revenue Forecasts by Reporting Segment for Fiscal 2025
Sales Revenue Forecasts by Reporting Segment for Fiscal 2025 (Unit: Yen in millions) Fiscal 2025 (Forecast) Change in amount Sales Revenue by Fiscal 2024 Previous (Apr. 2024) Revised (Oct. 2024) compared with Reporting Segment Component Component Component Previous Amount Amount Amount Fiscal 2024 F
Slide 16: Business Profit (Loss) Forecasts by Reporting Segment for Fiscal 2025
Business Profit (Loss) Forecasts by Reporting Segment for Fiscal 2025 (Unit: Yen in millions) Fiscal 2025 (Forecast) Change in amount Business Profit by Fiscal 2024 Previous (Apr. 2024) Revised (Oct. 2024) compared with Reporting Segment % to Sales % to Sales % to Sales Previous Amount Amount Amount
Slide 17: Dividends for Fiscal 2025
Dividends for Fiscal 2025 (1) Interim Dividend 25 yen per share (same amount as the interim dividend of fiscal 2024 after the stock-split basis) (2) Year-end Dividend (Forecast) 25 yen per share (same amount as the year-end dividend of fiscal 2024) Trend of Dividend Per Share and Dividend Payout Rat
Slide 18: Agenda: Progress of Medium-term Management Plan
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value Note: Kyocera decided to change the classification of Ener
Slide 19: Progress of Medium-term Management Plan (By Fiscal 2026)
Progress of Medium-term Management Plan (By Fiscal 2026) Sales Revenue (Yen in Billions) Profit Ratio Before Income Taxes (%) Kyocera Group Total 30.0% 12,000 Core Components Business 30.0% 30,000 2,500.0 25.0% 10,000 25.0% 25,000 2,025.3 2,004.2 2,020.0 780.0 20,000 20.0% 8,000 20.0% 14.0% 592.4 56
Slide 20: Core Components Business Portfolio and Future Direction
Core Components Business Business Portfolio and Future Direction Business Portfolio (Fiscal 2024) Future Direction *Circle area represents sales revenue of Kyocera’s respective business ◆ Enhance profitability in Organic Packages Demand shift to AI has reduced orders and operating rates Business ✓ A
Slide 21: Electronic Components Business Portfolio and Future Direction
Electronic Components Business Business Portfolio and Future Direction Business Portfolio (Fiscal 2024) Future Direction *Circle area represents sales revenue of Kyocera’s respective business ◆ Restructure businesses of KAVX Group Market softening and ✓ Invest Kyocera’s resources (technology and per
Slide 22: Solutions Business Portfolio and Future Direction
Solutions Business Business Portfolio and Future Direction Business Portfolio (Fiscal 2024) Future Direction *Circle area represents sales revenue of Kyocera’s respective business ◆ Implement business-specific measures for high growth and high profitability ✓ Expand business and enhance profitabilit
Slide 23: Agenda: Change in Policy Regarding Cross-shareholdings
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value 22 © 2024 KYOCERA Corporation
Slide 24: Changed Policy to Proceed with Sale of KDDI Shares
Change in Policy Regarding “Cross-shareholdings” Changed Policy to Proceed with Sale of KDDI Shares 1. Since the establishment of DDI* (now KDDI Corporation), the business situations of both companies have significantly changed. Reflecting this, Kyocera has determined that it is time to review its h
Slide 25: Agenda: Management Reforms to Enhance Corporate Value
1 Financial Results for 1H of Fiscal 2025 2 Financial Forecasts for Fiscal 2025 Progress of Medium-term Management Plan and 3 Future Direction 4 Change in Policy Regarding “Cross-shareholdings” 5 Management Reforms to Enhance Corporate Value 24 © 2024 KYOCERA Corporation
Slide 26: Current State of the Kyocera Group
Current State of the Kyocera Group • Sales revenue has increased over the past decade, partly due to M&A effects • Investments prioritized in the past five to six years, with returns still to come (Yen in billions) 2,004.2 2,020.0 (%) 2,000 20 Sales revenue 1,500 1,447.4 15 Capital expenditures + R&
Slide 27: Kyocera from the Perspective of the Capital Market
Kyocera from the Perspective of the Capital Market Kyocera’s Price-to-Book (P/B) Ratio Capital Market Assessment of Kyocera (x) 1.5 ✓ Kyocera has diverse businesses but lacks a clear driver for overall profitability. 1.4 ✓ Financial assets make up over half of market 1.3 capitalization, highlighting
Slide 28: Overview of Management Reforms for Enhancing Corporate Value
Overview of Management Reforms for Enhancing Corporate Value 【Policy】 Strengthen business portfolio management across the three reporting segments, namely the Core Components Business, the Electronic Components Business, and the Solutions Business, focusing on a management approach that further prio
Slide 29: Direction that Kyocera should Pursue
Direction that Kyocera should Pursue Build a sustainable business portfolio that adapts to various changes in the business environment through enhancing the value of each reporting segment Assumed cost of capital *Circle area represents sales revenue of Kyocera’s respective business 6% Fiscal 2024 A
Slide 30: Strengthen Governance Structure to Realize Management Reforms
Strengthen Governance Structure to Realize Management Reforms Meeting of the Board of Directors Internal Outside Key topics under consideration (held monthly) 10 Directors 4 Audit & Supervisory ◆ Business portfolio analysis Board Members (Market growth rate / Market share / ROIC, etc.) Proposal ◆ Gr
Slide 31: Appendix: Quarterly Trends of Financial Results
Appendix: Quarterly Trends of Financial Results from 1Q of Fiscal 2024 to 2Q of Fiscal 2025 30 © 2024 KYOCERA Corporation
Slide 32: Quarterly Trends of Financial Results
Quarterly Trends of Financial Results Sales Revenue Operating Profit (Unit: Yen in billions) Profit Ratio (Unit: Yen in billions) 0.0 511.5 505.9 507.4 498.9 499.7 479.4 100.0 0.0 5.4% 5.6% 5.1% 4.2% 3.4% 2.6% 50.0 0.0 25.7 28.3 25.8 21.0 16.9 13.1 0.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q Fiscal
Slide 33: Core Components Business Quarterly Trends
Core Components Quarterly Trends of Financial Results by Reporting Segment Business Sales Revenue Business Profit / Loss (Unit: Yen in billions) (Unit: Yen in billions) Business Profit Ratio 180.0 33 160.0 149.8 148.3 143.3 136.9 138.4 11.2% 140.0 134.1 28 10.3% 10.0% 8.6% 9.0% 120.0 56.3 58.0 Indus
Slide 34: Electronic Components Business Quarterly Trends
Electronic Quarterly Trends of Financial Results by Reporting Segment Components Business Sales Revenue Business Profit / Loss (Unit: Yen in billions) (Unit: Yen in billions) Business Profit Ratio 120.0 100.0 30.0 90.2 89.7 89.7 91.2 87.8 84.6 80.0 25.0 20.0 60.0 15.0 6.4% 40.0 4.8% 3.6% 10.0 1.2% 5
Slide 35: Solutions Business Quarterly Trends
Solutions Business Quarterly Trends of Financial Results by Reporting Segment Sales Revenue Business Profit / Loss (Unit: Yen in billions) (Unit: Yen in billions) 350.0 Business Profit Ratio 300.0 290.8 272.3 273.7 275.7 270.5 264.8 8.3% 7.3% 250.0 75.3 30 5.9% 5.7% 5.3% 4.9% Industrial 79.2 75.8 85
Slide 36: Cautionary Statements with respect to Forward-Looking Statements
Cautionary Statements with respect to Forward-Looking Statements Certain of the statements made in this document are forward-looking statements, which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve know
Slide 37: © 2024 KYOCERA Corporation
KYOCERA KYOCERA Corporation © 2024 KYOCERA Corporation