Kyocera Corporation · TSE:6971
Kyocera — Investor Day (November 2021)
39 slides from Kyocera's investor day presentation, Nov 25, 2021
Slide 1: Kyocera IR Day
November 25, 2021 Kyocera IR Day Hideo Tanimoto President and Representative Director 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
Slide 2: Today's Explanation
Today’s Explanation 1. For Sustainable Growth 2. Initiatives by Business Segment (1) Core Components Business (2) Electronic Components Business (3) Solutions Business 1 © KYOCERA Corporation
Slide 3: 1. For Sustainable Growth
1. For Sustainable Growth 2 © KYOCERA Corporation
Slide 4: Financial Forecasts for FY March 2022
Financial Forecasts for FY March 2022 Continued proactive investments and initiatives to strengthen management foundation under ongoing COVID-19 situation Aim for record high sales revenue with double digits profit before income taxes ratio (Unit: Yen in millions) Forecasts for the year ending March
Slide 5: Strengthening the Management Foundation for Growth (1)
Strengthening the Management Foundation for Growth (1) Increasing production capabilities and strengthen R&D infrastructures by proactive investments (Unit: Yen in billions) <Annual Trends of R&D expenses and capital expenditures> 260.0 R&D expenses Capital expenditures 90.0 186.9 192.6 185.2 144.8
Slide 6: Strengthening the Management Foundation for Growth (2)
Strengthening the Management Foundation for Growth (2) Implementing measures to strengthen the management foundation FY Mar. 2018 FY Mar. 2019 FY Mar. 2020 FY Mar. 2021 FY Mar. 2022 AVX Corporation* Reorganized business Reforms Structural became wholly owned structures into new subsidiary segments I
Slide 7: Challenges and Initiatives for Sustainable Growth
Challenges and Initiatives for Sustainable Growth Increasing sales revenue and Initiatives to address social challenges profit ratio of each segment Creating new businesses GaN Core Components Electronic Components Robotics Systems Business Business Solutions Business From suboptimization to tot
Slide 8: Financial Target
Financial Target ROE (%) Sales revenue Profit before income Profit before 10％ or (Yen in billions) taxes (Yen in billions) income taxes ratio (%) 8.0% higher 5.2% 3,000.0 3.4% 4.5% 4.6% 3.6% 20.0% 2,000.0 1,623.7 1,750.0 15.0% 600.0 1,577.0 1,599.1 1,526.9 10.9% 8.7% 9.3% 8.2% 7.7% 300.0 190.0 140.6
Slide 9: For Sustainable Growth: Financial Targets by Business Segment
For Sustainable Growth <Financial Targets by Business Segment> Sales Revenue (Yen in billions) Profit before income taxes ratio (%) Core Components Business Electronic Components Business Solutions Business Sales Revenue 750 billion yen / Sales Revenue 500 billion yen / Sales Revenue 1,500 billion y
Slide 10: Initiatives for Sustainable Growth (1) Core Components Business
Initiatives for Sustainable Growth (1) Core Components Business Hiroshi Fure Director, Managing Executive Officer Executive General Manager of Core Components Business 9 © KYOCERA Corporation
Slide 11: Organization and Strengths of the Business
Core Components Business Organization and Strengths of the Business Core Components Business Fine Ceramic Components (1) Wide range of core technologies from material, design, processing to quality assurance of fine ceramics as well as Automotive Components production capability Optical Components (
Slide 12: Core Components Business Vision
Core Components Business Vision ■Vision We realize the management rationale by providing core products of sustainable society and creation of healthy and fulfilling life. ■Background of the vision For Sustainable Development of Society; For Healthy and Future Realization of Safe and Secure Society F
Slide 13: Major Challenges and Key Actions for Sustainable Growth
Core Components Business Major Challenges and Key Actions for Sustainable Growth Major Challenges Key Actions Reinforce existing Market businesses expansion 1. Expand business Realizing high growth and high in growing markets profitability Accurate Total optimization understanding Collaboration and
Slide 14: Key Actions (1) Expand Business in Growing Markets
Core Components Business Key Actions (1) Expand Business in Growing Markets Strive to expand sales of high-value-added products in growing markets (e.g. information communication, semiconductors, ADAS) Sales revenue by business units (Unit: Yen in billions) Aiming growth of ten percent or more ■Othe
Slide 15: Semiconductor Components Unit
Core Components Business Key Actions (1) Expand Business in Growing Markets: Semiconductor Components Unit Increase production of major products for information and ・Increase production capabilities communication markets ・Focus on high-value-added products Increasing production capabilities (Unit:
Slide 16: Industrial & Automotive Components Unit
Core Components Business Key Actions (1) Expand Business in Growing Markets: Industrial & Automotive Components Unit Increase in demand of high- value-added products and Further increase of production capability improvement of profitability Production increase to meet strong demand (Unit: Yen in b
Slide 17: Key Actions (2) Reinforce Management Foundation
Core Components Business Key Actions (2) Reinforce Management Foundation: Organizing Cross-functional Structures Automotive Components SC Ceramic Packages Medical Devices Fine Ceramic SC Organic Packages Jewelry and Applied Optical Components Components and Boards Ceramic Related Products Promoting
Slide 18: Core Components Business Financial Target
Core Components Business Financial Target (Unit: Yen in billions) Segment target for the company to reach ■ Sales revenue 3 trillion yen for consolidated sales revenue ■Vision and 20.0% for profit before income taxes ratio ● Business profit ratio (%) We realize the management rationale 750.0 by prov
Slide 19: Initiatives for Sustainable Growth (2) Electronic Components Business
Initiatives for Sustainable Growth (2) Electronic Components Business John Sarvis Managing Executive Officer Executive General Manager of Electronic Components Business Koichi Kano Director, Managing Executive Officer Deputy Executive General Manager of Electronic Components Business 18 © KYOCERA Co
Slide 20: Organization and Major Products
Electronic Components Business Organization and Major Products Electronic Components Business Basic policy Electronic Components Group, Kyocera Corporation ・Make the most of mutually complementary strength ・Maximize the synergy of management resources KYOCERA AVX Components Corporation ・Expand busin
Slide 21: Electronic Components Financial Target
Electronic Components Business Financial Target Segment target for the company to reach (Unit: Yen in billions) 3 trillion yen for consolidated sales revenue ■ Sales Revenue and 20.0% for profit before income taxes ratio ● Business Profit Ratio (%) Key Actions Segment target for the company to reach
Slide 22: Proactive Investments to Growing Highly Profitable Business (1)
Electronic Components Business Proactive Investments to Growing Highly Profitable Business (1) Multilayer Ceramic Capacitors Tantalum Capacitors Crystal Devices （MLCC） Small sized and high capacitance New plant in Thailand under Increase of market shares of small capacitors for mobile terminal
Slide 23: Proactive Investments to Growing Highly Profitable Business (2)
Electronic Components Business Proactive Investments to Growing Highly Profitable Business (2) New plant of KYOCERA AVX under Developing silicon MEMS+WLP construction in Thailand resonators Estimated to be completed construction in December, 2021 Founded KYOCERA Tikitin Oy in July 2019 Place: Nakhon
Slide 24: Pursuing the Synergy Effect with KYOCERA AVX
Electronic Components Business Pursuing the Synergy Effect with KYOCERA AVX Sales・Integration of sales organization United States and Europe:Oct. 1, 2021 Asia: Apr. 1, 2022 (plan) Wholly acquired AVX changed company name to New Brand KYOCERA AVX Components Corporation on Oct. 1, 2021 KYOCERA AVX ・Ex
Slide 25: Closer Cooperation with Other Businesses
Electronic Components Business Closer Cooperation with Other Businesses High efficiency SMD laser & Automotive Modules KYOCERA SLD LASER Developing next-generation laser modules for EVs Place: Goleta and Fremont, United States e.g. headlamps Acquired former SLD Laser on Jan. 2021 Developing high eff
Slide 26: Expansion of Business (Capacitors)
Electronic Components Business Expansion of Business (Capacitors) List of major capacitor products Existing product New product Under development Telecommunications Automotive IoT Industrial Aerospace Medical Application Product MLCC ◎ ◎ ◎ ○ ○ △ Tantalum capacitors ○ ◎ ○ ◎ ◎ ◎ Film capacitors △ ◎ △
Slide 27: Making things better together
Making things better together Please refer to “Cautionary Statements with respect to Forward-Looking Statements” on the last page. 26 © KYOCERA Corporation
Slide 28: Initiatives for Sustainable Growth (3) Solutions Business
Initiatives for Sustainable Growth (3) Solutions Business Norihiko Ina Director, Managing Executive Officer Executive General Manager of Solutions Business 27 © KYOCERA Corporation
Slide 29: Organization and Major Products and Services of Solutions Business
Solutions Business Organization and Major Products and Services of Solutions Business Solutions Business Industrial Tools Major Products and Services Information Equipment Telecommunications Equipment Information Telecommunications Industrial Tools Equipment Equipment Information Systems & Telecommu
Slide 30: Vision of the Solutions Business
Solutions Business Vision of the Solutions Business Create as much happiness as possible, and build a better society To provide solutions for social agendas and Vision challenges facing customers as well as high-quality and high-value added products and services, and create innovation to contribute
Slide 31: Challenges of the Solutions Business
Solutions Business Challenges of the Solutions Business Approach to maximize synergetic effects Maximize horizontal synergetic effect among product-lines (1), (2) Solutions Business Information Core Electronic Systems Industrial Information Telecom- and Liquid Printing Smart Infrastruc- Components C
Slide 32: Issues of the Segment: Vertical synergy
Solutions Business Issues of the Segment Approach to maximize synergetic effects Maximize horizontal synergetic effect among product-lines (1), (2) 3 Vertical synergy for operationalization Solutions Business Information Core Electronic Systems Liquid Smart Telecom- Printing Components Components In
Slide 33: Key Actions for Sustainable Growth
Solutions Business Key Actions for Sustainable Growth 1 Enhancing businesses of existing product lines Providing new solutions which goes beyond 2 the boundaries of existing product lines Creating innovation by combining marketing, 3 technical approach and existing businesses Please refer to “Cautio
Slide 34: Enhancing businesses of existing product lines
Solutions Business Key Actions for Sustainable Growth (1) Enhancing businesses of existing product lines Domestic Market Strategy of Exploiting new markets Telecommunications Business for Information Equipment Combining customers desired actions Put knowledge to work. Offering valuable solutions, We
Slide 35: Providing new solutions: digital textile printing machine
Solutions Business Key Actions for Sustainable Growth (2) Providing new solution which goes beyond the boundaries of existing product lines Purpose ・To develop environmentally friendly and compact pigment inkjet machines and ・To realize quicker delivery by installing machines to sewing factories clo
Slide 36: Creating innovation: 5G millimeter-wave backhaul system
Solutions Business Key Actions for Sustainable Growth (3) Creating innovation by combining marketing, technical approach, and existing businesses Purpose By leveraging Kyocera’s unique wireless technology and ⇒ Contribute to development of infrastructure which solves a social issue 5G millimeter-wav
Slide 37: Solutions Business Financial Target
Solutions Business Financial Target Segment target for the company to reach (Unit: Yen in billions) 3 trillion yen for consolidated sales revenue ■Vision and 20.0% for profit before income taxes ratio ■ Sales Revenue Create as much happiness as possible, ● Business profit ratio (%) and build a bette
Slide 38: 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 39: THE NEW VALUE FRONTIER
THE NEW VALUE FRONTIER Ce KYOCERA KYOCERA Corporation © KYOCERA Corporation