Kyocera Corporation · TSE:6971

Kyocera — FY2023 Earnings Presentation

33 slides from Kyocera's earnings presentation, May 2023

1. Slide 1: Agenda: Medium-Term Management Plan

   Notes: This is an English translation of the Japanese original. This translation is prepared for the reference and convenience solely for those who do not use Japanese. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail. Certain of the statem

2. Slide 2: Basic Concept of the Medium-Term Management Plan

   Overview Basic Concept of the Medium-Term Management Plan 1. Realization of our Management Rationale To provide opportunities for the material and intellectual growth of all our employees, and through our joint efforts, contribute to the advancement of society and humankind. 2. Practice of High-Prof

3. Slide 3: Business Environment and Social Conditions

   Overview Business Environment and Social Conditions Medium- to long-term expansion Full-scale application of AI, 5G, Growing global of semiconductor market ADAS and other new technologies environmental awareness Size of Semiconductor Market (Unit: Yen in trillions) 100 50 Digital textile printing sy

4. Slide 4: Stages of Growth

   Overview Stages of Growth Aim to achieve in 6 years FY Mar. 2029 FY Mar. 2024 Sales Revenue: ~FY Mar. 2026 3 trillion yen Medium-Term Profit Ratio: Management Plan 20% 22 years FY Mar. 2026 Sales Revenue: FY Mar. 2023 2.5 trillion yen Sales Revenue: FY Mar. 2001 Profit Ratio: 14% 2 trillion yen Sale

5. Slide 5: Proactive Investment in Key Areas

   Overview Proactive Investment in Key Areas Trend of Capital Expenditures and R&D Expenses Breakdown of Capex (Unit: Yen in billions) Headquarters, R&D etc. Core Components Business Max. of 1,200.0 (Components for semiconductor-related Solutions Business 12% markets) (Information equipment, industria

6. Slide 6: Numerical Targets (Kyocera Group Consolidated)

   Overview Numerical Targets (Kyocera Group Consolidated) Medium-Term Management Plan (Unit: Yen in billions) FY Mar. 2023 FY Mar. 2024 FY Mar. 2026 Sales Revenue 2,025.3 2,100.0 2,500.0 Profit Before Income Taxes 176.2 200.0 350.0 Profit Ratio 8.7% 9.5% 14.0% ROE (Result) 4.3% (Target) 5.0% or more (

7. Slide 7: Management Strategy to Achieve Financial Targets

   Overview Management Strategy to Achieve Financial Targets • Continue proactive investment on a record scale • Realize high growth by concentrating internal resources into areas of Group-wide competitive advantage • Enhance profitability by maximizing use of digital technology • Allocate management r

8. Slide 8: Medium-Term Target by Reporting Segment

   Overview Medium-Term Target by Reporting Segment (FY Mar. 2026) Core Components Business Electronic Components Business Solutions Business FY Mar. 2026 FY Mar. 2026 FY Mar. 2026 Sales Revenue: 780.0 bil. yen Sales Revenue: 500.0 bil. yen Sales Revenue:1,250.0 bil. yen Business Profit: 140.4 bil. yen

9. Slide 9: Agenda: Business Strategy

   1 Financial Results for the Year Ended March 31, 2023 2 Financial Forecasts for the Year Ending March 31, 2024 3 Medium-Term Management Plan ✓ Overview ✓ Business Strategy ✓ Strengthening of Management Foundation 24 © 2023 KYOCERA Corporation

10. Slide 10: Core Components Business: Business Environment

    Core Components Business Business Environment Market (Global; Kyocera forecast) Key Products ・Semiconductor: Increasing demand for cutting-edge products (Unit: K wafer/month) Logic Memory Organic Packages Ceramic Packages Fine Ceramic Components for 5,107 for Network Servers for Semiconductors Semic

11. Slide 11: Core Components Business: Business Strategy

    Core Components Business Business Strategy Core Components Business Business Strategy 9,000 Medium-Term Management Plan (Unit: Yen in billions) Take advantage of increasing demand over medium to long term to 8,000 780.0 expand business, particularly in areas of competitive advantages 7,000 Sales Rev

12. Slide 12: Core Components Business: Investment Strategy

    Core Components Business Investment Strategy Basic Policy Major Capital Expenditures Accelerate investment to ◆ Increase capacity via new facilities in view of long-term demand expand production growth • Further enhancement of preparatory ・Fine ceramic components: Kagoshima Kokubu Plant and Shiga Yo

13. Slide 13: Construction of New Facility

    Core Components Business Construction of New Facility Acquire land for new factory in Isahaya, Nagasaki Overview • Name: Nagasaki Isahaya Plant (tentative name), Kyocera Corporation • Location: Minami Isahaya Industrial Park, Oguri District, Isahaya City, Nagasaki Pref. • Investment: Approx. 62 bill

14. Slide 14: Electronic Components Business: Business Environment

    Electronic Components Business Business Environment Market Key Products (Global; Kyocera forecast) Demand for electronic components is expected to grow further as the electronic Tantalum Capacitors Timing Devices MLCCs Connectors industry develops. (Crystal Devices) (Unit: Yen in billions) Connector

15. Slide 15: Electronic Components Business: Business Strategy

    Electronic Components Business Business Strategy Electronic Components Business Business Strategy 6,000 Medium-Term Management Plan (Unit: Yen in billions) Focus on areas of expertise and leverage synergies between Kyocera and KAVX to expand market share and 500.0 5,000 enhance profitability <Sales>

16. Slide 16: Electronic Components Business: Investment Strategy

    Electronic Components Business Investment Strategy Basic Policy Major Capital Expenditures Optimize production sites of ◆ Expand production capacity by creating new plants and buildings Kyocera and KAVX • New Thai plant: Realize collaboration between Kyocera and KAVX as a production base for MLCCs •

17. Slide 17: Solutions Business: Business Strategy

    Solutions Business Business Strategy Solutions Business Business Strategy 14,000 Medium-Term Management Plan (Unit: Yen in billions) 1,250.0 1. Expand existing business 12,000 Industrial Tools Unit: Sales Revenue 1,115.0 Increase global market share of cutting tools and pneumatic and power tools 1,0

18. Slide 18: Industrial Tools Unit

    Solutions Business Industrial Tools Unit Market (Global; Kyocera forecast) Key Measures Markets for both cutting tools and pneumatic Cutting Tools and power tools are expected to grow. ◆ Strengthen sales in Europe and Asia ◆ Develop products for growth industries by Market forecast Cutting Tools: Ap

19. Slide 19: Document Solutions Unit

    Solutions Business Document Solutions Unit Market (Global; Kyocera forecast) Key Measures While offices go paperless, commercial printing MFPs and Printers equipment and ECM markets grow. ◆ Expand market share by launching new eco-friendly products leveraging MFPs and Printers: Approx. 0.95X Market

20. Slide 20: Communications Unit -Structural Reform-

    Solutions Business Communications Unit -Structural Reform- Reform Theme Discontinue consumer smartphone business Fundamentally transform business structure ◆ Ended new product development in FY Mar. 2023 • Selection and concentration of products ◆ End supply and sales of products in FY Mar. 2025 and

21. Slide 21: Energy Business -Structural Reform-

    Solutions Business Energy Business -Structural Reform- Reform Theme Business model of renewable energy selling service we aim Power generation and storage system Expand corporate renewable energy selling business that address increasing demand of Solar power generation system Storage battery system

22. Slide 22: Energy Business -Partner Collaboration-

    Solutions Business Energy Business -Partner Collaboration- From Apr. 3, 2023 From Apr. 3, 2023 Signed power purchase agreement with Concluded capital and business alliance with KDDI Group Daito Trust Construction to promote renewable energy business ~Kyocera to use power generated by ZEH* rental apa

23. Slide 23: Expansion of Businesses Addressing Social Issues

    Create New Businesses Expansion of Businesses Addressing Social Issues Ongoing Projects High-Efficiency Digital Textile Collaborative Robots Cooperative Road- GaN* Laser Printing System Vehicle System *Gallium nitride Unique Laser Light AI control technology and ITS wireless roadside system Unique p

24. Slide 24: Agenda: Strengthening of Management Foundation

    1 Financial Results for the Year Ended March 31, 2023 2 Financial Forecasts for the Year Ending March 31, 2024 3 Medium-Term Management Plan ✓ Overview ✓ Business Strategy ✓ Strengthening of Management Foundation 39 © 2023 KYOCERA Corporation

25. Slide 25: Capital Strategy to Support Business Growth

    Strengthening of Management Foundation Capital Strategy to Support Business Growth Clarified capital allocation for three years based on the medium-term management plan Capital Allocation from FY Mar. 2024 through FY Mar. 2026 (Unit: Yen in billions) Proactive investment for business growth • Focus

26. Slide 26: Shareholder Returns

    Strengthening of Management Foundation Shareholder Returns Enhancing shareholder returns through a combination of dividends and share repurchases Period of repurchase: From May 16, 2023, by Mar. 22, 2024 Share repurchase Share repurchase Share repurchase 資本構成や株価状況 Conduct share repurchase continuous

27. Slide 27: Introduce Reduction Target of Cross-shareholdings

    Strengthening of Management Foundation Introduce Reduction Target of Cross-shareholdings Adopt a numerical target to further reduce its shareholdings Set a numerical target to clarify Reducing its shareholdings from the the immediate policy to further reduce past, at appropriate timing its sharehold

28. Slide 28: Initiatives Regarding Corporate Governance

    Strengthening of Management Foundation Initiatives Regarding Corporate Governance (2) Appointment of an Outside (1) Align Interest with Shareholders Director Introduction of Performance-Linked Appoint person with management Restricted Stock Compensation Plan* experience as a new Outside Director* Re

29. Slide 29: Recruitment Strategies

    Strengthening of Management Foundation Recruitment Strategies Challenge To procure necessary human resource to achieve the medium-term management plan as competition for human resources intensifies Key Measures Recruitment Activities Strengthen recruitment activities Secure workforce in the new by p

30. Slide 30: Promote Sustainable Management

    Strengthening of Management Foundation Promote Sustainable Management Environment Human capital etc. ⚫ Endorsed TCFD (Mar. 2020~) ⚫ Respect human rights ✓ Joined the Responsible Business Alliance (RBA) ✓ Conduct human rights due diligence for Kyocera and its suppliers ⚫ Set and achieve long-term env

31. Slide 31: Summary of Medium-Term Management Plan

    Summary of Medium-Term Management Plan Implement Business Strategy Strengthen Management Foundation ⚫ Strategic investments in areas of competitive ⚫ Capital strategies advantage ✓ Procure fund by effectively combining capital assets and ✓ Core Components Business: Active investment for borrowings c

32. Slide 32: 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

33. Slide 33: THE NEW VALUE FRONTIER

    THE NEW VALUE FRONTIER cx KYOCERA KYOCERA Corporation © 2023 KYOCERA Corporation

Kyocera — FY2023 Earnings Presentation on 6ix