Kyocera Corporation · TSE:6971
Kyocera — Q1 FY3/09 Earnings Presentation
39 slides from Kyocera's earnings presentation, Aug 5, 2008
Slide 1: Kyocera Corporation Business Presentation
Kyocera Corporation Business Presentation Makoto Kawamura President and Representative Director August 5, 2008
Slide 2: Today's Presentation
Today’s Presentation 1. 1. Financial FinancialResults Resultsfor forthe thethree threemonths monthsended ended June June30, 30,2008 2008and andInitiatives Initiativesand andForecast Forecastfrom from Second SecondQuarter QuarterOnward Onward Makoto Kawamura President and Representative Director 2. 2
Slide 3: 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.
Slide 4: Consolidated Financial Results
Consolidated Financial Results - Three months ended June 30, 2008 - (Unit: Yen in millions) Three months ended June 30, 2007 2008 % Change Amount % to net sales Amount % to net sales Net sales 315,450 100.0 331,758 100.0 5.2 Profit from operations 31,616 10.0 27,962 8.4 -11.6 Pre-tax income 40,484 1
Slide 5: Consolidated Net Sales and Pre-tax Income by Reporting Segment
Consolidated Net sales and Pre-tax income by Reporting Segment of FY3/09 Q1 - Compared with FY3/08 Q1- (Unit: Yen in billions) Fine Ceramic Semiconductor Applied Electronic Telecommu- Information Others Adjustments FY3/09 Q1 Parts Group Parts Group Ceramic Device nications Equipment and Products Gro
Slide 6: Business Outlook
Business Outlook - Year ending March 31, 2009 - Production Volume Forecasts for (Kyocera Forecast) Key Electronic Equipment Worldwide CY2007 CY2008 (Estimate) Background (Millions of Units) (% change from CY2007) Mobile phone Steady increase in demand for handsets 1,150 +10% low-end models in emergi
Slide 7: Consolidated Financial Forecast
Consolidated Financial Forecast - Year ending March 31, 2009 - (Unit: Yen in millions) Year ended March 31, 2008 Year ending March 31, 2009 % Change Amount % to net sales Amount % to net sales Net sales 1,290,436 100.0 1,476,000 100.0 14.4 Profit from operations 152,420 11.8 145,000 9.8 -4.9 Pre-tax
Slide 8: Initiatives and Forecast from Second Quarter Onward (1)
Initiatives and Forecast from Second Quarter Onward (1) Fine Ceramic Parts Group ・ Timing of recovery for the semiconductor fabrication equipment industry is uncertain ・ Expand production of single-crystal sapphire substrates ・ Expand sales of automotive related Single-crystal sapphire Ceramic glow
Slide 9: Initiatives and Forecast from Second Quarter Onward (2)
Initiatives and Forecast from Second Quarter Onward (2) Applied Ceramic Products Group Expand solar energy business ・ Annual production volume of 300 MW ・ Prepare for mass production of back contact cells ・ Achieve annual sales of ¥100 billion Production line for solar Production plant power generat
Slide 10: Initiatives and Forecast from Second Quarter Onward (3)
Initiatives and Forecast from Second Quarter Onward (3) Telecommunications Equipment Group ・ Pursue synergies with the acquired business (build business strategies, share development resources, reduce production costs, etc.) ・ Develop next generation PHS base stations and prepare for production ・ De
Slide 11: Business Expansion in Strategic Markets
Business Expansion in Strategic Markets Telecommunications Telecommunications Environment Environment and and Energy Energy Information Information Automotive Automotive PHS base station W63K CDMA handset Solar modules Multifunctional peripherals Capacitors Ceramic glow plugs Crystal devices SOFCs A
Slide 12: Continuous Expansion of Sales and Profit
Continuous Expansion of Sales and Profit Improve EPS Expand profit of both Components and Equipment Businesses Creativity and Growth Develop new products Pursue synergies and technologies Key Markets Telecom- Environment munications Information and Energy Automotive Please refer to accompanying note
Slide 13: Developments in the Semiconductor Parts Group
Developments in the Semiconductor Parts Group
Slide 14: Semiconductor Parts Group Results
Semiconductor Parts Group Results -Three months ended June 30, 2008 (FY3/09 Q1) - (Millions of yen) Three months ended June 30, Increase or 2007 2008 Decrease Net sales ３５，２７７ ４１，１６７ １６．７ ％ Pre-tax income ４，０２３ ６，１９８ ５４．１ ％ Pre-tax income １１．４ ％ １５．１ ％ ＋３．７ Ｐ ratio ¾ Ceramic packages ・ Increased sal
Slide 15: Trend of Net Sales and Pre-tax Income Ratio
Trend of Net Sales and Pre-tax Income Ratio -Semiconductor Parts Group- (Billions of yen) Net sales Pre-tax income ratio （％） 40.6 41.2 40.4 40 38.3 35.3 35 15.8% 15.1% 13.0% 11.4% 11.4% 30 0 FY3/08 Q1 Q2 Q3 Q4 FY3/09 Q1 12
Slide 16: Sales Breakdown by Market Application
Sales Breakdown by Market Application z Ceramic products z Organic products New markets Mobile phone handsets z Automotive, etc. z Packages for crystal/SAW devices z Packages for CMOS image sensors z Packages for high-frequency Communications infrastructures communication modules z SiP (System-in-a-
Slide 17: Market Environment Surrounding the Semiconductor Parts Group
Market Environment Surrounding the Semiconductor Parts Group Mobile Phone Digital Cameras Handsets Servers Production volume Production volume Production volume (Millions of units) (Millions of units) (Millions of units) 2,000 200 20 +19% +10% ↓ 1,500 150 +10% 15 +6% 1,000 100 10 500 50 5 0 0 0 CY '
Slide 18: Initiatives in the Semiconductor Parts Group
Initiatives in the Semiconductor Parts Group Expand sales in key markets １ Mobile phone handset market Digital consumer equipment ２ market ３ Server related market Cultivate new markets Expand into automotive, medical equipment and ４ environment-related product applications Please refer to accompanyi
Slide 19: Expand Sales in Mobile Phone Handset Market
１ Expand Sales in Mobile Phone Handset Market Existing products Ceramic products Packages for crystal/SAW devices Packages for CMOS image sensors Packages for high- frequency communication modules Organic products SiP substrates for application processors New products Expand line up of packages for
Slide 20: Expand Sales in Mobile Phone Handset Market: Crystal/SAW Packages
１ Expand Sales in Mobile Phone Handset Market Development of packages for crystal/SAW devices ■ Technology trends: Market needs ■ Kyocera’s advantages Smaller, thinner equipment Smaller electronic components Ability Ability to to obtain obtain cutting-edge cutting-edge information information duedue
Slide 21: Expand Sales in Mobile Phone Handset Market: Organic SiP Substrates
１ Expand Sales in Mobile Phone Handset Market Development of organic SiP (System-in-a-Package) substrates ■ Technology trends: Market needs ■ Kyocera’s advantages Smaller, thinner equipment High-density packaging in semiconductors Production Production technology technology for for Trend toward thin
Slide 22: Expand Sales in Digital Consumer Equipment Market
２ Expand Sales in Digital Consumer Equipment Market Aggressively cultivate applications and products Digital Digital cameras cameras Ceramic products Packages for CCD/CMOS image sensors Packages for crystal/SAW devices Game consoles Packages for high-frequency communication modules Packages for gyro
Slide 23: Expand Sales in Server Related Market
３ Expand Sales in Server Related Market Kyocera’s advantages ① Strong customer relationships Proven package supply record since the beginning of the semiconductor industry No.1 in market share ② High-performance package technology Outstanding design technology to control electrical characteristics F
Slide 24: Expand Sales in Server Related Market
３ Expand Sales in Server Related Market さらなる高性能化の追求 Pursue further enhancement in performance High-speed High pin count Fine pitch transmission Ceramic flip-chip packages Organic flip-chip packages Solidify market leadership position by maintaining our advantages Leverage properties of ceramic mater
Slide 25: Cultivate New Markets (1)
４ Cultivate New Markets (1) ■ Automotive applications New Markets Substrates for various ECUs Packages for various sensors Packages for millimeter wave radars Communications Mobile phone infrastructures handsets ■ Medical equipment applications Substrates for CT scanners Servers Digital consumer Pac
Slide 26: Cultivate New Markets (2)
４ Cultivate New Markets (2) Develop ceramic substrates and packages for automotive market ■ Market needs ECU modules for transmissions Packages for accelerometers z Eco-friendly, Packages for fuel-efficient Rapid shift to gyroscopes z Safety expanded use of z Comfortable, electronics convenient ■ Ex
Slide 27: Future Developments in the Semiconductor Parts Group
Future Developments in the Semiconductor Parts Group Equipment Divisions Strengthen ties Components Divisions Information equipment Anticipate needs Electronic components Telecommunications Automotive components equipment Others Materials/Parts Semiconductor parts Fine ceramic parts Aggressively exp
Slide 28: Developments in the Information Equipment Group
Developments in the Information Equipment Group
Slide 29: Financial Results
Financial Results -Three months ended June 30, 2008 (FY3/09 Q1)- (Millions of yen) Three months ended June 30, Increase or 2007 2008 Decrease Net sales ６７，２７２ ６１，１１４ ー９．２ ％ Pre-tax income ９，４０６ ６，８８７ ー２６．８ ％ Pre-tax income １４．０ ％ １１．３ ％ ー２．７ Ｐ ratio ・Decline in office equipment investment due to U.S
Slide 30: Trend of Net Sales and Pre-tax Income Ratio
Trend of Net Sales and Pre-tax Income Ratio -Information Equipment Group- Net sales Pre-tax income ratio (%) 300 276.7 290.0 268.8 Net sales (Billions of yen) 241.1 249.4 250 14.3% 12.6% 12.1% 200 10.6% 15.0% 150 100 Q1 61.1 Pre-tax 50 income ratio 11.3% 0 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 (Forecas
Slide 31: Growth and Expansion in Information Equipment Group
Growth and Expansion in Information Equipment Group -Realize stable profit growth through expanded sales of color consumables- <Information Equipment Group Consolidated Net Sales> 3,000 300 (Billions of yen) 2,000 200 Supplies (consumables) Hardware (equipment) 1,000 100 00 FY3/05 FY05/3 FY3/06 FY06
Slide 32: Expansion of Integrated Management Needs at Corporate Customers
Expansion of Integrated Management Needs at Corporate Customers Equipment administration Environment- Cost reduction consideration MFPs Printers Integrated Management Electric Document document colorization Network security Please refer to accompanying note on page 1. 28
Slide 33: Initiatives Aimed at Expanding Business
Initiatives Aimed at Expanding Business Increase installation volume of color models and maximize profit from color consumables 1. Develop color engine platform 2. Develop controller platform 3. Develop new color toner and invest in plants Please refer to accompanying note on page 1. 29
Slide 34: Develop Color Engine Platform
Develop Color Engine Platform -Evolution in “ECOSYS” concept- Increase volume of color models and maximize profit from color consumables Original interactive touchdown projection Long Life Technology developing system (high image quality Original color technology and long durability) a-Si photorecep
Slide 35: Shared Engine Platform
Shared Engine Platform Utilizes advantages gained from a unique development strategy centered on a shared engine platform between printers and MFPs MFPs Printers Shared use Advantages of a Shared Engine Platform ・Development resource sharing ・Production technology sharing ・Efficient material procure
Slide 36: Develop Controller Platform
Develop Controller Platform Printer controller MFP controller Internally Internally developed developed Controller Controller developed developed controller controller by by third third party party CY2001 CY2001 Introduced ¾ Standardized printing environment Introduced internally internally ¾ Driver
Slide 37: Develop New Color Toner and Invest in Plants
Develop New Color Toner and Invest in Plants Tamaki Plant: Construction of new toner plant (Commenced operations in May 2008) Strengthen development of color technology New toner plant Chemical products development center ・Development of high- image-quality color toner: Small particle diameter, tone
Slide 38: R&D Center
Construction completed on May 2008 R&D Center 34
Slide 39: The New Value Frontier
THE NEW VALUE FRONTIER ey KYOCERA