Kyocera Corporation · TSE:6971
Kyocera — FY2017 Earnings Presentation
25 slides from Kyocera's earnings presentation, May 2, 2017
Slide 1: Financial Presentation (Year ended March 31, 2017)
May 2, 2017 Financial Presentation (Year ended March 31, 2017) This is an English translation of the Japanese original. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter s
Slide 2: Today's Presentation
Today’s Presentation Goro Yamaguchi Chairman and Representative Director 1. Change in reporting segment classification Hideo Tanimoto President and Representative Director 2. Management Policies 3. Financial Results for the Year Ended March 31, 2017 4. Financial Forecasts for the Year Ending March 3
Slide 3: 1. Change in reporting segment classification
1. Change in reporting segment classification Goro Yamaguchi Chairman and Representative Director 2
Slide 4: Initiatives from FY3/2014 to FY3/2017
Initiatives from FY3/2014 to FY3/2017 FY3/2014-FY3/2017 Strengthen the Group’s Enhance management collective capabilities foundations Reinforce intra-Group ties Improve profitability through structural reforms Build sales expansion framework by market Restructure businesses in pursuit of synergies E
Slide 5: Change in reporting segment classification
Change in reporting segment classification FY3/2017 FY3/2018 onward Components Business Components Business Reporting segment classification Main business and subsidiaries Main business and subsidiaries Reporting s egment clas s ification Fine Ceramic Parts Group Fine Ceramic Components Industrial &
Slide 6: 2. Management Policies
2. Management Policies Hideo Tanimoto President and Representative Director 5
Slide 7: Career Summary
Career Summary Hideo Tanimoto, President and Representative Director Mar. 1982 Joined Corporate Fine Ceramics Group, Kyocera Corporation Feb. 2007 General Manager of Ceramics Division 2, Corporate Fine Ceramics Group Apr. 2014 General Manager of Corporate Fine Ceramics Group Apr. 2015 Executive Offi
Slide 8: Basic Policy toward Mid-Term Business Growth
Basic Policy toward Mid-Term Business Growth Aim to achieve higher growth and higher profitability Information & Automotive Environment & Medical & Communication Related Energy Health Care Exploit collective capability Expand sales in core markets of Kyocera Group Expand existing businesses Create n
Slide 9: Management Policy and Major Initiatives
Management Policy and Major Initiatives Create new businesses Expand existing businesses by by strengthening internal extensive cost reductions and external collaboration Cost reduction through process Strengthen internal synergies in reform technologies Double productivity utilizing Utilize externa
Slide 10: 3. Financial Results for the Year Ended March 31, 2017
3. Financial Results for the Year Ended March 31, 2017 9
Slide 11: Financial Results for the Year Ended March 31, 2017
Financial Results for the Year Ended March 31, 2017 (Unit: Yen in millions) Years ended March 31, Change 2016 2017 Amount % to net sales Amount % to n et sales Amount % Net sales 1,479,627 100.0% 1,422,754 100.0% -56,873 -3.8% Profit from operations 92,656 6.3% 104,542 7.3% 11,886 12.8% Pre-tax inco
Slide 12: Sales by Reporting Segment for the Year Ended March 31, 2017
Sales by Reporting Segment for the Year Ended March 31, 2017 (Unit: Yen in millions) Years ended March 31, Change 2016 2017 Amount % of net sales Amount % o f net sal es Amount % Fine Ceramic Parts Group 95,092 6.4% 97,445 6.8% 2,353 2.5% Semiconductor Parts Group 236,265 16.0% 245,727 17.3% 9,462 4
Slide 13: Operating Profit by Reporting Segment for the Year Ended March 31, 2017
Operating Profit by Reporting Segment for the Year Ended March 31, 2017 (Unit: Yen in millions) Years ended March 31, Change 2016 2017 Amount % to net sales Amount % t o net sal es Amount % Fine Ceramic Parts Group 15,745 16.6% 14,512 14.9% -1,233 -7.8% Semiconductor Parts Group 42,232 17.9% 25,662
Slide 14: Summary of FY3/2017 Results - Components Business
Summary of FY3/2017 Results - Components Business - Sales (Unit : Yen in billions) <Major factors for changes> 869.8 856.9 Fine Ceramic Parts 95.1 97.5 Sales were down slightly due to a decline in sales in Semiconductor Parts 236.3 245.7 the Applied Ceramic Products Group following lower revenue i
Slide 15: Summary of FY3/2017 Results - Equipment Business
Summary of FY3/2017 Results - Equipment Business - Sales (Unit : Yen in billions) <Major factors for changes> 507.3 469.7 Telecommunications 171.0 Sales were down due to a decline in sales volume Equipment 145.7 in line with a review of product strategy for the Telecommunications Equipment Group I
Slide 16: 4. Financial Forecasts for the Year Ending March 31, 2018
4. Financial Forecasts for the Year Ending March 31, 2018 15
Slide 17: Financial Forecasts for the Year Ending March 31, 2018
Financial Forecasts for the Year Ending March 31, 2018 (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2017 2018 Amount % to net sales Amount % to n et sales Amount % Net sales 1,422,754 100.0% 1,500,000 100.0% 77,246 5.4% Profit from operations 104,542 7.3% 120,000 8.0% 15
Slide 18: Sales Forecast by Reporting Segment
Sales Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2017 2018 Amount % of net sales Amount % of net s ales Amount % Industrial & Automotive Components Group 230,229 16.2% 246,000 16.4% 15,771 6.9% Semiconductor Components Group 245,727 17.3%
Slide 19: Operating Profit Forecast by Reporting Segment
Operating Profit Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2017 2018 Amount % to net sales Amount % to net s ales Amount % Industrial & Automotive Components Group 22,442 9.7% 26,000 10.6% 3,558 15.9% Semiconductor Components Group 25,310
Slide 20: Financial Forecasts by Reporting Segment (1)
Financial Forecasts by Reporting Segment (1) Sales Operating profit Operating profit ratio ( ) Change from FY3/2017 (%) Industrial & Automotive Components Group 3,000 (Unit: Yen in billions) <Major factors for changes> 246.0（+6.9%） 2,500 230.2 Sales to increase in core products due to brisk 2,000
Slide 21: Financial Forecasts by Reporting Segment (2)
Financial Forecasts by Reporting Segment (2) Sales Operating profit Operating profit ratio ( ) Change from FY3/2017 (%) Electronic Devices Group (Unit: Yen in billions) 3,000 <Major factors for changes> 254.0 （+5.5%） 240.8 2,500 12.7% 13.0% Sales to increase in electronic components for 2,000 smar
Slide 22: Financial Forecasts by Reporting Segment (3)
Financial Forecasts by Reporting Segment (3) Sales Operating profit Operating profit ratio ( ) Change from FY3/2017 (%) Document Solutions Group (Unit: Yen in billions) <Major factors for changes> 4,500 4,000 350.0 (+8.0%） 3,500 324.0 Sales to increase due to active sales expansion of 3,000 8.7% 1
Slide 23: Dividend Forecast
Dividend Forecast Dividend Policy based on payout ratio Around 40% 30％ or more Payout ratio Dividend per share (yen) 38.9% 38.5% 33.1% 33.6% 31.7% 110 110 100 100 80 FY3/2014 FY3/2015 FY3/2016 FY3/2017 FY3/2018（Forecast） Please refer to forward-looking statements on the final page. 22
Slide 24: Trend of Sales and Pre-tax Income
Trend of Sales and Pre-tax Income Sales Pre-tax income Record High (Unit: Yen in billions) Pre-tax income ratio 16,000 1,526.5 1,500.0 3,000 1,479.6 1,447.4 1,422.8 14,000 Strengthen production to drive a new stage of growth 12,000 Enhance management foundations 10,000 146.3 150.0 8,000 145.6 137.8
Slide 25: 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.