Kyocera Corporation · TSE:6971
Kyocera — FY2023 Earnings Presentation
54 slides from Kyocera's earnings presentation, May 16, 2023
Slide 1: Financial Presentation (Year Ended March 31, 2023)
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
Slide 2: Agenda
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 1 © 2023 KYOCERA Corporation
Slide 3: Financial Results for the Year Ended March 31, 2023
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 2 © 2023 KYOCERA Corporation
Slide 4: Financial Results for the Year Ended March 31, 2023 (1)
Financial Results for the Year Ended March 31, 2023 (1) (Unit: Yen in millions) Years Ended March 31, Change 2022 2023 Amount % 1,838,938 2,025,332 186,394 10.1% Sales Revenue Operating 148,910 128,517 -20,393 -13.7% Profit (8.1%) (6.3%) Profit Before 198,947 176,192 -22,755 -11.4% Income Taxes (10.
Slide 5: Financial Results for the Year Ended March 31, 2023 (2)
Financial Results for the Year Ended March 31, 2023 (2) (Unit: Yen in millions) Years Ended March 31, Change 2022 2023 Amount % Capital 151,771 173,901 22,130 14.6% Expenditures (8.3%) (8.6%) Depreciation Charge of 90,229 108,757 18,528 20.5% Property, Plant and Equipment (4.9%) (5.4%) 84,123 94,277
Slide 6: Sales Revenue by Reporting Segment for the Year Ended March 31, 2023
Sales Revenue by Reporting Segment for the Year Ended March 31, 2023 (Unit: Yen in millions) Years Ended March 31, Sales Revenue by 2022 2023 Change Reporting Segment Component Component Amount Ratio Amount Ratio Amount % Core Components Business 527,933 28.7% 592,376 29.2% 64,443 12.2% Industrial &
Slide 7: Business Profit (Loss) by Reporting Segment for the Year Ended March 31, 2023
Business Profit (Loss) by Reporting Segment for the Year Ended March 31, 2023 (Unit: Yen in millions) Years Ended March 31, Business Profit by 2022 2023 Change Reporting Segment % to Sales % to Sales Amount Revenue Amount Revenue Amount % Core Components Business 61,640 11.7% 89,475 15.1% 27,835 45.
Slide 8: Core Components Business Financial Results
Core Components Business Financial Results by Reporting Segment for the Year Ended Mar. 31, 2023 Sales Revenue 2,000 Business Profit 8,000 1,800 (Unit: Yen in billions) (Unit: Yen in billions) 7,000 1,600 592.4 +12.2% 15.1% 6,000 527.9 (Comparison with1,400 the previous period) 11.7% 5,000 1,200 Bus
Slide 9: Electronic Components Business Financial Results
Electronic Components Financial Results by Reporting Segment for the Year Ended Mar. 31, 2023 Business Sales Revenue 1,600 Business Profit 5,000 1,400 (Unit: Yen in billions) (Unit: Yen in billions) 4,000 378.5 +11.6% 1,200 339.1 (Comparison with the previous period) 1,000 Business 14.1% Profit Rati
Slide 10: Solutions Business Financial Results
Solutions Business Financial Results by Reporting Segment for the Year Ended Mar. 31, 2023 Sales Revenue 1,600 Business Profit 14,000 1,400 (Unit: Yen in billions) (Unit: Yen in billions) 12,000 1,068.6 +8.6% 1,200 983.7 (Comparison with 7.0% 10,000 the previous period) Business 1,000 Profit Ratio 4
Slide 11: Financial Forecasts for the Year Ending March 31, 2024
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 10 © 2023 KYOCERA Corporation
Slide 12: Financial Forecasts for the Year Ending March 31, 2024 (1)
Financial Forecasts for the Year Ending March 31, 2024 (1) (Unit: Yen in millions) Year Ended Year Ending Change March 31, 2023 March 31, 2024 Amount % 2,025,332 2,100,000 74,668 3.7% Sales Revenue Operating 128,517 147,000 18,483 14.4% Profit (6.3%) (7.0%) Profit Before 176,192 200,000 23,808 13.5%
Slide 13: Financial Forecasts for the Year Ending March 31, 2024 (2)
Financial Forecasts for the Year Ending March 31, 2024 (2) (Unit: Yen in millions) Year Ended Year Ending Change March 31, 2023 March 31, 2024 Amount % Capital 173,901 275,000 101,099 58.1% Expenditures (8.6%) (13.1%) Depreciation Charge of 108,757 123,000 14,243 13.1% Property, Plant and Equipment
Slide 14: Sales Revenue Forecasts by Reporting Segment
Sales Revenue Forecasts by Reporting Segment for the Year Ending Mar. 31, 2024 (Unit: Yen in millions) Year Ended Year Ending Sales Revenue by Change March 31, 2023 March 31, 2024 Reporting Segment Component Component Amount Ratio Amount Ratio Amount % Core Component Business 592,376 29.2% 620,000 2
Slide 15: Business Profit (Loss) Forecasts by Reporting Segment
Business Profit (Loss) Forecasts by Reporting Segment for the Year Ending Mar. 31, 2024 (Unit: Yen in millions) Year Ended Year Ending Business Profit by Change March 31, 2023 March 31, 2024 Reporting Segment % to Sales % to Sales Amount Revenue Amount Revenue Amount % Core Components Business 89,47
Slide 16: Summary of Financial Forecasts for the Year Ending March 31, 2024
Summary of Financial Forecasts for the Year Ending March 31, 2024 Sales Revenue Profit Before Income Taxes (Unit: Yen in billions) (Unit: Yen in billions) 46.4 2,100.0 11.5 -10.8 27.6 2,025.3 ～ ～ Year Ended Core Components Electronic Solutions Others Year Ending Year Ended Core Components Electronic
Slide 17: Medium-Term Management Plan
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 16 © 2023 KYOCERA Corporation
Slide 18: 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
Slide 19: 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
Slide 20: 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
Slide 21: 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
Slide 22: 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 (
Slide 23: 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
Slide 24: Medium-Term Target by Reporting Segment (FY Mar. 2026)
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
Slide 25: 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
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: Construction of New Facility: Isahaya, Nagasaki
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
Slide 30: 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
Slide 31: 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>
Slide 32: 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 •
Slide 33: 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
Slide 34: 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
Slide 35: 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
Slide 36: 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
Slide 37: 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
Slide 38: 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
Slide 39: 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
Slide 40: 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
Slide 41: 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
Slide 42: 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
Slide 43: 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
Slide 44: 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
Slide 45: 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
Slide 46: 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
Slide 47: 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
Slide 48: Appendix: Quarterly Trends of Financial Results
Appendix: Quarterly Trends of Financial Results 47 © 2023 KYOCERA Corporation
Slide 49: Quarterly Trends of Financial Results
Quarterly Trends of Financial Results Sales Revenue Operating Profit 800 Profit Ratio 000 (Unit: Yen in billions) (Unit: Yen in billions) 520.2 514.3 9.5% 8.9% 479.4 483.2 492.0 498.8 7.7% 8.4% 000 455.6 6.7% 7.3% 420.7 600 6.3% 000 43.3 42.8 41.4 2.9% 37.4 000 400 32.4 30.4 35.1 000 200 14.6 000 0
Slide 50: Core Components Business Quarterly Trends
Core Components Business Quarterly Trends of Financial Results by Reporting Segment Sales Revenue Business Profit (Unit: Yen in billions) (Unit: Yen in billions) 1,800 Business Profit Ratio 157.5 154.2 16.3% 16.0% 1,600 332 14.7% 13.2% 140.2 141.5 139.2 12.8% 12.3% 12.0% 135.7 25.7 1,400 133.0 282 4
Slide 51: Electronic Components Business Quarterly Trends
Electronic Components Quarterly Trends of Financial Results by Reporting Segment Business Sales Revenue Business Profit (Unit: Yen in billions) (Unit: Yen in billions) 30.0 Business Profit Ratio 120.0 16.9% 16.8% 100.5 25.0 15.9% 95.4 14.9% 14.4% 100.0 94.6 86.5 89.5 86.3 88.0 9.0% 9.6% 20.0 76.8 80
Slide 52: Solutions Business Quarterly Trends
Solutions Business Quarterly Trends of Financial Results by Reporting Segment Sales Revenue Business Profit (Unit: Yen in billions) (Unit: Yen in billions) Business Profit Ratio 350.0 300.0 261.0 276.0 255.2 258.0 266.1 268.5 8.6% 6.7% 7.0% 5.7% 5.7% 239.5 30 4.1% 4.0% 250.0 228.0 2.1% 70.0 63.2 66.
Slide 53: 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 54: THE NEW VALUE FRONTIER
THE NEW VALUE FRONTIER cx KYOCERA KYOCERA Corporation © 2023 KYOCERA Corporation