Kyocera Corporation · TSE:6971
Kyocera — Investor Presentation (February 2008)
24 slides from Kyocera's investor presentation, February 2008
Slide 1: Kyocera's Environment Related Business Developments - Solar Energy Business Strategies
Kyocera's Environment Related Business Developments - Solar Energy Business Strategies - MAKOTO KAWAMURA President and Representative Director February 2008
Slide 2: Today's Presentation
Today's Presentation 1. 1. Kyocera's Kyocera'sBusiness BusinessDevelopments Developments 2. 2. Consolidated ConsolidatedFinancial FinancialForecast Forecast (Year (YearEnding EndingMarch March31, 31,2008) 2008) 3. 3. Kyocera's Kyocera'sEnvironment EnvironmentRelated RelatedBusiness BusinessDevelopme
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: Kyocera Group's Business Developments and Sales Trends
Kyocera Group's Business Developments and Sales Trends Vertical integration of technologies Horizontal development of technologies 1.5 Net sales (Unit: Yen in trillions) 1979 Telecommunications equipment 1979 Information equipment 1978 Dental and orthopedic implants 1.0 1975 Solar energy products 19
Slide 5: Consolidated Financial Forecast
Consolidated Financial Forecast - Year Ending March 31, 2008 - (Unit: Yen in millions) Year ended Year ending March 31, 2008 March 31,2007 Previous forecast Revised forecast % change % to net (October 2007) (January 2008) Amount sales % to net % to net Amount Amount sales sales Net sales 1,283,897 1
Slide 6: Proportion of Sales and Operating Profit by Business Categories
Proportion of Sales and Operating Profit by Business Categories - Year ended March 31, 2007 - Net sales MLCCs Color MFP Operating profit Sapphire substrates for LEDs Equipment Components business business Crystal devices 40.5% 23.5% 71.8% 50.7% Mobile phone handsets ASICs packages Ceramic packages f
Slide 7: Pre-tax Income Ratio Trends
Pre-tax Income Ratio Trends - FY05 through FY08 (Forecast) - (%) Components Business Equipment Business Kyocera Group Total 20 16.1 14.6 14.2 13.4 12.2 12.9 10.0 8.9 10 8.6 6.6 5.2 4.3 0 FY3/05 FY3/06 FY3/07 FY3/08 (Forecast) Pre-tax Income has grown for three consecutive fiscal years (Forecast) Com
Slide 8: Four Strategic Markets
Four Strategic Markets Promote development of new products and technologies in strategic markets Telecommunications Telecommunications Energy Energy Information Information Automotive Automotive Handsets Handsets // Base Base Stations Stations Intelligent Intelligent Transport Transport Color Color
Slide 9: Kyocera's Environment Related Businesses
Kyocera's Environment Related Businesses Solar Solar Photovoltaic Photovoltaic ECOSYS ECOSYS Systems Systems Printers Printers and and MFPs MFPs Amorphous Amorphous Silicon Silicon Drums Drums SOFCs Sapphire Sapphire Substrates Substrates for for LEDs LEDs Piezoelectric-Stacks Piezoelectric-Stacks C
Slide 10: Growth Rate in Markets for Kyocera's Environment Related Components
Growth Rate in Markets for Kyocera's Environment Related Components Yearly Market Growth Rate Ceramics Glow Plugs Approx. 45% Piezoelectric-Stacks Approx. 30% Sapphire Substrates for LEDs Approx. 15% cf. semiconductor chips 5～10% Kyocera forecasts Please refer to accompanying note on page 2. 9
Slide 11: Size and Growth Rate in Markets for Kyocera's Environment Related Products
Size and Growth Rate in Markets for Kyocera's Environment Related Products Market Size Yearly Market (billion yen) Growth Rate Printers and MFPs Approx. 5,000 10% Solar Photovoltaic Systems Approx. 800* 20%～40% (in CY 06) *Daiwa Institute of Research Ltd estimate; others are Kyocera forecasts Please
Slide 12: Competitive Advantages of Kyocera's Solar Energy Business
Competitive Advantages of Kyocera's Solar Energy Business AAleading leadingcompany companywith with30 30years yearsof ofexperience experience World's World'sfirst firstmass massproducter producterofofcurrently currentlymost mostwidely widelyused used multi-crystalline 1 multi-crystallinesilicon sili
Slide 13: Production Volume Trend in PV Systems
Production Volume Trend in PV Systems MW 250 California Solar Initiatives Yokaichi, Japan new plant approx. 200MW 200 (Possible production volume:500MW) Czech Republic plant 150 Amendment to EEG in Germany Mexico plant 100 EEG Tianjin, in Germany China plant 50 Residential subsidies in Japan (until
Slide 14: Principal Market Outlook
Principal Market Outlook GW 14 EU 12.0 Left: Outlook with incentive by governmental policy GW GW Right: Conservative outlook 12 approx. 14× 4 Japan GW 2,9 approx. 11× 10 3 GW 8 1,3 6 3.1 3.6 2 0.8 GW 4 USA 2.9 0.3 GW 0.4 GW approx. 20× GW 1.4 GW 1 3 4 0.9 GW GW 2 GW GW 0 2 1.3 CY 2006 2010(E) 2016(E
Slide 15: Comparison between Expansion Plan of Materials Manufacturers and Market Demand
Kton 200 Comparison between Expansion Plan of Materials Manufacturers and Market Demand Demand for Materials for Semiconductor + Solar Products 150 CY2016 New material manufacturers Solar 22GW 100 Demand for Solar Products Materials Shortage 50 Demand for Semiconductors Existing materials manufactur
Slide 16: Market Conditions: Overview
Market Conditions: Overview Spread of subsidies Europe, US, Korea, etc. ⇒ Continuous market growth ＋ Increase in production of materials Increase in production volume by ＝ existing manufacturers + new entrants ⇒ Stability in supply and price Sudden increase in number of 200～300 Companies manufacture
Slide 17: Cost Competitiveness: Improvement of conversion efficiencies
Cost Competitiveness: Improvement of conversion efficiencies Silicon Solar cells Solar Casting Cutting Wafer slicing modules ○ ○ ○ ○ Improvement of Optimization of slicing condition Passivation Optimization of crystalline Reactive Ion module materials quality Thinner wafers Etching (RIE) Improvement
Slide 18: Cost Competitiveness: Productivity
Cost Competitiveness: Productivity 1. Higher cell efficiencies Back Approx. 17% Current: Contact improvement from ２BB ３BB Cell current power output FY05 FY09 Conversion efficiencies 15.7% 16.5% 16.5% 17.5% FY09 target 18.5% Power output 3.67W/cell 3.86W/cell 4.06W/cell 4.26W/cell 4.50W/cell Technolo
Slide 19: Development of Differential Products
Development of Differential Products Snow resistance Snow resistance Building unifiable Design oriented Design oriented High temperature resistance High temperature Compact style with resistance self power source Compact style with Black Back sheets self power source High temperature resistance Snow
Slide 20: No.1 Quality
Evaluation for High Quality Received best evaluation in general consumer product test (Germany) ! No.1 Quality . Number of Manufacturers: 15 Score (Good Point): 1.9 (1.0=Highest Possible, 6.0=Lowest Possible) 【Evaluation criteria】 Power Output Durability Reliability Installation Quality is the key t
Slide 21: 4 production bases worldwide
Czech Republic China Japan / Ise Japan / Yokaichi Mexico 4 production bases worldwide FY07 FY11 Ise Germany 30MW 90MW (Planned) FY07 FY11 USA EUROPE ASIA Beijing 100MW 110MW (Planned) USA Czech Republic Kyocera Mexico FY07 FY11 Tianjin Japan Yokaichi (Cell) FY07 FY11 25MW 150MW (Planned) FY07 FY11 2
Slide 22: Planned Production Volume Expansion in PV Systems
MW Planned Production Volume Expansion in PV Systems 600 500MW 500 Soccer Stadium 400MW Switzerland 1.35MW 400 13.8MW Salamanca - Spain 300MW 300 AEON Kagoshima: 140kW Total 200 100 0 FY 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Plan Please refer to accompanying note on page 2.
Slide 23: Notes for Consolidated Financial Results
Notes for Consolidated Financial Results During fiscal year ended March 31, 2007, Kyocera sold its shares in Kyocera Leasing Co., Ltd., a subsidiary engaged in financing services. For this reason, business results of Kyocera Leasing Co., Ltd. and profit on sales of the shares in Kyocera Leasing Co.,
Slide 24: THE NEW VALUE FRONTIER
THE NEW VALUE FRONTIER rt KYOCERA