Kyocera Corporation · TSE:6971
Kyocera — H1 FY3/2018 Earnings Presentation
26 slides from Kyocera's earnings presentation, Oct 31, 2017
Slide 1: Financial Presentation (Six Months Ended September 30, 2017)
October 31, 2017 Financial Presentation (Six Months Ended September 30, 2017) Hideo Tanimoto President and Representative Director This is an English translation of the Japanese original of conference call material. The translation is prepared solely for the reference and convenience of foreigners.
Slide 2: 1. Financial Results for the Six Months Ended September 30, 2017
1. Financial Results for the Six Months Ended September 30, 2017 Note: Kyocera has changed the classification of its reporting segments from FY3/2018. Business results for FY3/2017 have been reclassified in line with the change to reporting segment classifications in this document. 1
Slide 3: Financial Results for the Six Months Ended September 30, 2017
Financial Results for the Six Months Ended September 30, 2017 - Compared with the Six Months Ended September 30, 2016 - (Unit: Yen in millions) Six Months Ended September 30, Change 2016 2017 Amount % to net sales Amount % to net sales Amount % Net sales 653,243 100.0% 738,345 100.0% 85,102 13.0% Pr
Slide 4: Sales by Reporting Segment for the Six Months Ended September 30, 2017
Sales by Reporting Segment for the Six Months Ended September 30, 2017 - Compared with the Six Months Ended September 30, 2016 - (Unit: Yen in millions) Six months ended September 30, Change 2016 2017 Amount % of net sales Amount % of net sales Amount % Industrial & Automotive Components Group 107,7
Slide 5: Operating Profit by Reporting Segment for the Six Months Ended September 30, 2017
Operating Profit by Reporting Segment for the Six Months Ended September 30, 2017 - Compared with the Six Months Ended September 30, 2016 - (Unit: Yen in millions) Six months ended September 30, Change 2016 2017 Amount % to net sales Amount % to net sales Amount % Industrial & Automotive Components
Slide 6: Financial Results for H1 of FY3/2018 by Reporting Segment (1)
Financial Results for H1 of FY3/2018 by Reporting Segment (1) Sales Operating profit Operating profit ratio ( ) Change from H1 of FY3/2017 (%) Industrial & Automotive Components Group (Unit: Yen in billions) <Major factors for changes> 1,500 131.0 (+21.6%) Sales were up due primarily to an increas
Slide 7: Financial Results for H1 of FY3/2018 by Reporting Segment (2)
Financial Results for H1 of FY3/2018 by Reporting Segment (2) Sales Operating profit Operating profit ratio ( ) Change from H1 of FY3/2017 (%) Electronic Devices Group (Unit: Yen in billions) <Major factors for changes> ,500 137.3 (+20.2%) 15.9% Sales were up due mainly to an increase in sales for
Slide 8: Financial Results for H1 of FY3/2018 by Reporting Segment (3)
Financial Results for H1 of FY3/2018 by Reporting Segment (3) Sales Operating profit Operating profit ratio ( ) Change from H1 of FY3/2017 (%) Document Solutions Group (Unit: Yen in billions) <Major factors for changes> ,000 172.0 (+16.7%) Sales were up due primarily to an increase in sales 147.4
Slide 9: 2. Financial Forecasts for the Year Ending March 31, 2018
2. Financial Forecasts for the Year Ending March 31, 2018 8
Slide 10: Financial Forecasts for the Year Ending March 31, 2018
Financial Forecasts for the Year Ending March 31, 2018 (Unit: Yen in millions) Year ending March 31, 2018 (Forecast) Change in amount Year ended March 31, compared with 2017 Previous (May 2017) Revised (October 2017) (Ratio of increase) Year ended Previous Amount % to net sales Amount % to net sales
Slide 11: Sales Forecast by Reporting Segment
Sales Forecast by Reporting Segment (Unit: Yen in millions) Change in amount Year ended March 31, Year ending March 31, 2018 (Forecast) compared with 2017 Previous (May 2017) Revised (October 2017) Year ended Previous March 31, 2017 forecast Amount % of net sales Amount % of net sales Amount % of ne
Slide 12: Operating Profit Forecast by Reporting Segment
Operating Profit Forecast by Reporting Segment (Unit: Yen in millions) Change in amount Year ended March 31, Year ending March 31, 2018 (Forecast) compared with 2017 Previous (May 2017) Revised (October 2017) Year ended March Previous 31, 2017 Amount % to net sales Amount % to net sales Amount % to
Slide 13: Main Reasons for Revision to FY3/2018 Forecasts
Main Reasons for Revision to FY3/2018 Forecasts Sales Upswing in 1H results 20,000 (Unit: Yen in billions) +60 billion yen 1,560 1. Component orders exceeded expectations, 1,500 15,000 （+4.0％） especially for smartphones, industrial machinery 10,000 and automobiles 5,000 0 Previous Crystal devices Ca
Slide 14: Financial Forecasts of FY3/2018 by Reporting Segment (1)
Financial Forecasts of FY3/2018 by Reporting Segment (1) Sales Operating profit Operating profit ratio Industrial & Automotive Components Group (Unit: Yen in billions) 3,000 280.0 2,500 230.2 246.0 Sales and profit projected to exceed previous 9.7% 10.6% 10.7% fiscal year and previous forecast due
Slide 15: Financial Forecasts of FY3/2018 by Reporting Segment (2)
Financial Forecasts of FY3/2018 by Reporting Segment (2) Sales Operating profit Operating profit ratio Electronic Devices Group 289.0 (Unit: Yen in billions) 3,000 240.8 254.0 Sales and profit projected to exceed previous 2,500 12.7% 13.0% 13.8% fiscal year and previous forecast due to an 2,000 in
Slide 16: Financial Forecasts of FY3/2018 by Reporting Segment (3)
Financial Forecasts of FY3/2018 by Reporting Segment (3) Sales Operating profit Operating profit ratio Document Solutions Group (Unit: Yen in billions) Sales and profit forecast to increase compared ,000 350.0 350.0 324.0 with the previous fiscal year due to sales growth 11.4% in new products ,000
Slide 17: Initiatives to Expand Sales (1) Increase Production Capacity (I)
Initiatives to Expand Sales (1) Increase Production Capacity (Ⅰ) Aggressive investment to increase production of components for semiconductor processing equipment (SPE) • Increased demand for SPE • Greater need for ceramics in structural parts due to enhanced High Plasma High Lighter sophistication
Slide 18: Initiatives to Expand Sales (1) Increase Production Capacity (II)
Initiatives to Expand Sales (1) Increase Production Capacity (Ⅱ) Increase production and promote full automation for toner containers and photoreceptor drums ■Factory No.7 at the Tamaki Plant, Mie ■China factory OPC drum factory No.2 Started production in June 2017 Plan to start operation in May 201
Slide 19: Concluded basic agreement to acquire power tool business of Ryobi Limited
Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅰ) - Promote Diversification in Industrial Tool business - Concluded basic agreement to acquire power tool business of Ryobi Limited Impact drivers Circular saws Grinders Hedge clippers [Outline of Agreement] Target business Manufactu
Slide 20: Create structure as comprehensive tool maker
Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅱ) - Promote Diversification in Industrial Tool Business - Create structure as comprehensive tool maker (Joined Group in Augst 2017) (Plans to join Group in January 2018) Cutting tools Pneumatic tools Power tools Handle from cutting t
Slide 21: Expand Business Area through M&A (III): Automotive Sensors Business in AVX
Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅲ) - Expand Automotive Sensors Business in AVX Corporation - Our sensors and control modules help improve automotive safety and comfort Target business Transportation, Sensing & Control division (“TS&C”) from TT Electronics PLC Main b
Slide 22: Expand Business Area through M&A (IV): Strengthen Documents Solutions Group
Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅳ) - Strengthen Documents Solutions Group - Reinforce business expansion as a total document solutions provider Acquired Provide equipment and document US-based DataBank IMX, LLC company digitization as a set *1 • ECM business Solutio
Slide 23: Management Policy
Management Policy Expand existing business through Create new business by boosting ties major cost reductions inside and outside company Reduce costs through process reform Strengthen internal tech synergies Established Medical Development Center Double productivity via AI, robots, etc. Integrates
Slide 24: Dividend Forecast
Dividend Forecast FY3/2018 dividend forecast revised upward Year-end Dividend per share (yen) Interim Dividend per share (yen) Dividend forecast at the beginning of each fiscal year (yen) ¥120 ¥110 ¥110 ¥100 60 50 60 50 50 60 FY3/2016 FY3/2017 FY3/2018 （Forecast） Please refer to forward-looking stat
Slide 25: Trend of Sales and Pre-tax Income
Trend of Sales and Pre-tax Income Sales Pre-tax income Pre-tax income ratio Record High (Unit: Yen in billions) 16,000 1,560.0 3,000 1,526.5 Achieve ¥2 trillion 1,479.6 1,422.8 in sales by FY2021 14,000 Aim for record sales 12,000 and double-digit pre-tax Enhance management income ratio 10,000 found
Slide 26: 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.