Annual Reports

 
8-K

 
Other

  • 6-K (Nov 13, 2017)
  • 6-K (Oct 30, 2017)
  • 6-K (Aug 10, 2017)
  • 6-K (Jul 28, 2017)
  • 11-K (Jun 29, 2017)
  • 6-K (Jun 27, 2017)
Kyocera 6-K 2014

Documents found in this filing:

  1. 6-K
  2. Graphic
  3. Graphic
FORM 6-K
Table of Contents

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of January 2014

Commission File Number: 1-07952

KYOCERA CORPORATION

6, Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  x        Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7):  ¨


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

KYOCERA CORPORATION

/s/ SHOICHI AOKI

Shoichi Aoki

Director,

Managing Executive Officer and

General Manager of

Corporate Financial and Accounting Group

Date: January 29, 2014


Table of Contents

Information furnished on this form:

EXHIBITS

 

Exhibit
    Number    

   

1.

  Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2013

2.

  Notice Concerning Cancellation of Treasury Stock


Table of Contents

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Nine Months Ended December 31, 2013

The consolidated financial information is prepared in accordance with accounting principles generally accepted in the United States of America.

1. Consolidated Financial Results for the Nine Months Ended December 31, 2013

 

(1) Consolidated results of operations

                (% of change from previous period)   
     Net sales      Profit from operations     Income before income taxes     Net income attributable to
shareholders of

Kyocera Corporation
 
     Million yen      %      Million yen      %     Million yen      %         Million yen              %  

Nine Months ended December 31, 2013

     1,071,388         15.6         89,696         75.1        110,344         60.2        69,364         54.2   

Nine Months ended December 31, 2012

     926,524         4.6         51,234         (42.0     68,882         (32.9     44,970         (37.6

(Note) Comprehensive income:

327,357 million yen for the nine months ended December 31, 2013, 242.6% of change from previous year.

95,546 million yen for the nine months ended December 31, 2012, 156.7% of change from previous year.

 

     Net income
attributable to
shareholders of

Kyocera Corporation
per share - Basic
     Net income
attributable to
shareholders of

Kyocera Corporation
per share - Diluted
 
     Yen      Yen  

Nine Months ended December 31, 2013

     189.07         189.07   

Nine Months ended December 31, 2012

     122.57         122.57   

At the meeting of the Board of Directors of Kyocera Corporation held on August 28, 2013, a resolution was made to undertake a stock split and a stock split at the ratio of two for one of all common shares was undertaken on October 1, 2013. “Net income attributable to shareholders of Kyocera Corporation per share—Basic” and “Net income attributable to shareholders of Kyocera Corporation per share—Diluted” are computed under the assumption that the stock split had been undertaken at the beginning of the year ended March 31, 2013 in accordance with standard related to earnings per share.

(2) Consolidated financial condition

 

     Total assets      Total equity      Kyocera Corporation
shareholders’ equity
     Kyocera  Corporation
shareholders’ equity
to total assets
 
     Million yen      Million yen      Million yen      %  

December 31, 2013

     2,703,438         2,014,126         1,936,662         71.6   

March 31, 2013

     2,282,853         1,714,942         1,646,157         72.1   

2. Dividends

 

     Dividends per share  
     End of
first quarter
     End of
second quarter
     End of
third quarter
     Year-end      Annual  
     Yen      Yen      Yen      Yen      Yen  

Year ended March 31, 2013

             60.00                 60.00         120.00   

Year ending March 31, 2014

             80.00                 40.00           

(Note) The above “Year-end” dividend per share of 40.00 yen for the year ending March 31, 2014 is the forecast based on the number of shares after the stock split at the ratio of two for one of all common shares, which was undertaken on October 1, 2013. The forecast of “Annual” dividend for the year ending March 31, 2014 is essentially equal to the original forecast of 160.00 yen, which was previously announced on April 25, 2013, before the stock split.

 

1


Table of Contents

3. Consolidated Financial Forecasts for the Year Ending March 31, 2014

(% of change from previous year)

     Net sales      Profit from
operations
     Income before
income taxes
     Net income
attributable to
shareholders of

Kyocera Corporation
     Net income
attributable to
shareholders of
Kyocera Corporation
per share
 
     Million yen      %      Million yen      %      Million yen      %      Million yen      %      Yen  

Year ending March 31, 2014

     1,430,000         11.7         115,000         49.5         138,000         36.1         84,500         27.1         230.32   

(Note) Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during nine months ended December 31, 2013. This average number of shares is calculated based on the number of shares after the stock split which took effect on October 1, 2013.

(Notes)

(1) Increase or decrease in significant subsidiaries during the nine months ended December 31, 2013: None.

(2) Adoption of concise quarterly accounting method or procedure: None.

(3) Changes in accounting policies:

(i) Changes due to adoption of new accounting standards: Please refer to the accompanying “2. OTHER INFORMATION” on page 12.

(ii) Changes due to other than adoption of new accounting standards: None.

(4) Number of shares (common stock):

(i) Number of shares issued:

 

382,618,580 shares at December 31, 2013    382,618,580 shares at March 31, 2013

(ii) Number of treasury stock:

 

15,750,917 shares at December 31, 2013    15,738,940 shares at March 31, 2013

(iii) Average number of shares outstanding:

 

366,873,131 shares at December 31, 2013    366,884,840 shares at December 31, 2012

“Number of shares issued,” “Number of treasury stock” and “Average number of shares outstanding” are described under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2013.

Kyocera Corporation adopted a resolution to cancel a certain portion of treasury stock at its meeting of the Board of Directors held on January 29, 2014. Please refer to the accompanying “2. OTHER INFORMATION” on page 12.

Presentation of Situation of Review Procedure

The consolidated financial information included in this report is out of scope of review procedure under the Financial Instruments and Exchange Law of Japan. Review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.

Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 11.

 

2


Table of Contents

Accompanying Information

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Nine Months Ended December 31, 2013

Economic Situation and Business Environment

During the nine months ended December 31, 2013 (“the nine months”), the Japanese economy registered a recovery trend, evident primarily in growth in personal consumption and exports, coupled with a revitalization of investment activity, particularly in the public sector. Overseas, the U.S. economy grew moderately on the back of improved personal consumption and capital investment. The Chinese economy continued steady growth. Meanwhile, the European economy continued to stagnate, despite some signs of recovery.

In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera”), shipment volume of conventional mobile phones, PCs, flat-screen TVs and digital cameras decreased compared with the nine months ended December 31, 2012 (“the previous nine months”) while shipment volume of smartphones and tablet PCs increased. As a result, overall component demand for the digital consumer equipment market showed moderate growth compared with the previous nine months. Meanwhile, the solar energy market in Japan grew substantially compared with the previous nine months due primarily to strong growth in demand in the public and commercial sectors.

Consolidated Financial Results

During the nine months, sales of all reporting segment increased compared with the previous nine months. Especially, the Applied Ceramic Products Group, driven by the solar energy business, the Telecommunications Equipment Group and the Information Equipment Group recorded double-digit increases. The effect of depreciation of the yen also contributed to the increase in sales. As a result, consolidated net sales for the nine months amounted to ¥1,071,388 million, an increase of ¥144,864 million, or 15.6%, compared with ¥926,524 million in the previous nine months, and reaching a record high compared to previous corresponding nine month periods.

Profit also increased as compared with the previous nine months, in all reporting segment of the components business primarily in the Applied Ceramic Products Group and the equipment business, as a result of sales growth and reduced costs. Also, profit grew considerably due to the absence of the environmental remediation charge of ¥21.3 billion recorded in the previous nine months at AVX Corporation, a U.S.-based consolidated subsidiary (please refer to “(3) Financial Settlement between AVX Corporation, the United States Environmental Protection Agency and Commonwealth of Massachusetts regarding the New Bedford Harbor Superfund Site” on page 8). Profit from operations increased by ¥38,462 million, or 75.1%, to ¥89,696 million, compared with ¥51,234 million in the previous nine months. Income before income taxes increased by ¥41,462 million, or 60.2%, to ¥110,344 million, compared with ¥68,882 million in the previous nine months, and net income attributable to shareholders of Kyocera Corporation increased by ¥24,394 million, or 54.2%, to ¥69,364 million, compared with ¥44,970 million in the previous nine months.

Average exchange rates for the nine months were ¥99 to the U.S. dollar, marking depreciation of ¥19 (approximately 24%) from ¥80 in the previous nine months, and ¥132 to the Euro, marking depreciation of ¥30 (approximately 29%) from ¥102 in the previous nine months. As a result, net sales and income before income taxes were pushed up by approximately ¥118 billion and ¥24 billion, respectively, compared with the previous nine months.

 

     Nine months ended December 31,      Increase
(Decrease)
 
     2012      2013     
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 926,524         100.0       ¥ 1,071,388         100.0       ¥ 144,864         15.6   

Profit from operations

     51,234         5.5         89,696         8.4         38,462         75.1   

Income before income taxes

     68,882         7.4         110,344         10.3         41,462         60.2   

Net income attributable to shareholders of Kyocera Corporation

     44,970         4.9         69,364         6.5         24,394         54.2   

Average US$ exchange rate

     80                 99                           

Average Euro exchange rate

     102                 132                           

 

3


Table of Contents

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Sales in this reporting segment increased compared with the previous nine months due to an increase in component demand for the industrial machinery and automotive markets. Operating profit increased due to the effects of increased sales and a reduction in costs.

2) Semiconductor Parts Group

Sales of ceramic packages for smartphones and organic packages for high-end servers increased compared with the previous nine months. In addition, sales by Kyocera Circuit Solutions Inc., which became a consolidated subsidiary in October 2013, also contributed to the increase in sales. As a result, sales and operating profit in this reporting segment increased compared with the previous nine months.

3) Applied Ceramic Products Group

Sales in the solar energy business increased substantially in the public and commercial sectors in Japan. In addition, sales in the cutting tool business also increased in automotive-related areas. As a result, sales in this reporting segment increased significantly over the previous nine months. Operating profit more than doubled compared with the previous nine months and profitability improved considerably.

4) Electronic Device Group

Sales in this reporting segment increased compared with the previous nine months due to growth in sales of capacitors and connectors. Operating profit increased substantially due to the absence of the environmental remediation charge at AVX Corporation recorded in the previous nine months as well as to the effects of increased sales and a reduction in costs.

5) Telecommunications Equipment Group

Sales and operating profit in this reporting segment increased compared with the previous nine months on the back of vigorous new product introductions in Japan and overseas and an increase in the number of carriers adopting Kyocera’s products overseas.

6) Information Equipment Group

Sales volume of printers and multifunctional products increased mainly in emerging countries due to new product introductions, as well as vigorous market cultivation and sales expansion activities. As a result, sales and operating profit in this reporting segment increased compared with the previous nine months.

7) Others

Sales in this reporting segment increased compared with the previous nine months due mainly to an increase in sales at Kyocera Communication Systems Co., Ltd. Operating profit decreased, however, due to an increase in R&D expenses for the development of new technologies and new products.

 

4


Table of Contents

Net Sales by Reporting Segment

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2012     2013    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 56,937        6.1      ¥ 58,929        5.5      ¥ 1,992        3.5   

Semiconductor Parts Group

     127,362        13.8        139,522        13.0        12,160        9.5   

Applied Ceramic Products Group

     136,726        14.8        195,854        18.3        59,128        43.2   

Electronic Device Group

     207,801        22.4        216,295        20.2        8,494        4.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     528,826        57.1        610,600        57.0        81,774        15.5   

Telecommunications Equipment Group

     127,360        13.7        147,778        13.8        20,418        16.0   

Information Equipment Group

     178,445        19.3        221,550        20.7        43,105        24.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     305,805        33.0        369,328        34.5        63,523        20.8   

Others

     115,009        12.4        123,177        11.5        8,168        7.1   

Adjustments and eliminations

     (23,116     (2.5     (31,717     (3.0     (8,601       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 926,524        100.0      ¥ 1,071,388        100.0      ¥ 144,864        15.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating Profit (Loss) by Reporting Segment   
     Nine months ended December 31,     Increase
(Decrease)
 
     2012     2013    
     Amount     %*     Amount     %*     Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 6,429        11.3      ¥ 8,484        14.4      ¥ 2,055        32.0   

Semiconductor Parts Group

     22,848        17.9        24,956        17.9        2,108        9.2   

Applied Ceramic Products Group

     9,906        7.2        22,816        11.6        12,910        130.3   

Electronic Device Group

     (7,223            21,240        9.8        28,463          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     31,960        6.0        77,496        12.7        45,536        142.5   

Telecommunications Equipment Group

     1,671        1.3        1,870        1.3        199        11.9   

Information Equipment Group

     15,752        8.8        17,112        7.7        1,360        8.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     17,423        5.7        18,982        5.1        1,559        8.9   

Others

     7,320        6.4        3,479        2.8        (3,841     (52.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     56,703        6.1        99,957        9.3        43,254        76.3   

Corporate gains and equity in earnings of affiliates and an unconsolidated subsidiary

     13,350               10,861               (2,489     (18.6

Adjustments and eliminations

     (1,171            (474            697          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 68,882        7.4      ¥ 110,344        10.3      ¥ 41,462        60.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

5


Table of Contents

Net Sales by Geographic Area

1) Japan

Sales in Japan for the nine months increased compared with the previous nine months due primarily to an increase in sales in the solar energy business in the public and commercial sectors.

2) Asia

Sales in Asia for the nine months increased compared with the previous nine months due to an increase in sales in the Electronic Device Group including connectors and capacitors, and in the Information Equipment Group, as well as to the effect of the yen’s depreciation.

3) Europe

Sales in Europe for the nine months increased compared with the previous nine months due primarily to an increase in sales in the Information Equipment Group supported by growth in sales volume of printers and multifunctional products and to the effect of the yen’s depreciation.

4) United States of America

Sales in the United States of America for the nine months increased compared with the previous nine months due to sales growth in the Telecommunications Equipment Group and the Information Equipment Group, as well as to the effect of the yen’s depreciation.

5) Others

Sales in Others for the nine months increased compared with the previous nine months due to an increase in sales in the Information Equipment Group and the Telecommunications Equipment Group.

 

     Nine months ended December 31,      Increase
(Decrease)
 
     2012      2013     
     Amount      %      Amount      %      Amount      %  
     (Yen in millions)  

Japan

   ¥ 413,315         44.6       ¥ 469,199         43.8       ¥ 55,884         13.5   

Asia

     172,023         18.6         208,472         19.4         36,449         21.2   

Europe

     141,863         15.3         177,477         16.6         35,614         25.1   

United States of America

     157,983         17.0         167,916         15.7         9,933         6.3   

Others

     41,340         4.5         48,324         4.5         6,984         16.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net sales

   ¥ 926,524         100.0       ¥ 1,071,388         100.0       ¥ 144,864         15.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

6


Table of Contents

(2) Consolidated Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at December 31, 2013 increased by ¥7,003 million to ¥312,457 million from ¥305,454 million at March 31, 2013.

1) Cash flows from operating activities

Net cash provided by operating activities for the nine months increased by ¥7,526 million to ¥96,621 million from ¥89,095 million for the previous nine months. This was due mainly to that increases in net income and cash inflow adjustments related to receivables exceeded increases in cash outflow adjustments related to notes and accounts payables and accrued expenses.

2) Cash flows from investing activities

Net cash used in investing activities for the nine months increased by ¥34,357 million to ¥76,703 million from ¥42,346 million for the previous nine months. This was due mainly to increases in purchase of securities. The effect has been partly offset by decreases in acquisitions and increases in withdrawal of time deposits, and increases in proceeds from maturities of securities.

3) Cash flows from financing activities

Net cash used in financing activities for the nine months increased by ¥3,117 million to ¥31,273 million from ¥28,156 million for the previous nine months. This was due mainly to an increase in dividends paid.

 

     Nine months ended December 31,  
           2012                 2013        
     (Yen in millions)  

Cash flows from operating activities

   ¥ 89,095      ¥ 96,621   

Cash flows from investing activities

     (42,346     (76,703

Cash flows from financing activities

     (28,156     (31,273

Effect of exchange rate changes on cash and cash equivalents

     9,512        18,358   

Net increase in cash and cash equivalents

     28,105        7,003   

Cash and cash equivalents at beginning of period

     273,288        305,454   

Cash and cash equivalents at end of period

   ¥ 301,393      ¥ 312,457   

 

7


Table of Contents

(3) Financial Settlement between AVX Corporation, the United States Environmental Protection Agency and Commonwealth of Massachusetts regarding the New Bedford Harbor Superfund Site

On October 10, 2012, AVX Corporation (“AVX”), a consolidated subsidiary of Kyocera Corporation in the United States, and the United States Environmental Protection Agency and the Commonwealth of Massachusetts (the “Governments”) announced that they had reached a settlement with respect to the Governments’ ongoing clean-up of the New Bedford Harbor Superfund site in New Bedford, Massachusetts.

AVX’s involvement in this site arose from the operations of an alleged legal predecessor, Aerovox Corporation, which produced liquid filled capacitors adjacent to the harbor from the late 1930s through the early 1970s. Subsequent owners of the facility are dissolved or in bankruptcy. AVX itself never produced this type of capacitor, nor does it do so today.

Following legal action brought in 1983, AVX reached a settlement with the Governments with respect to their claims relating to harbor clean-up and alleged natural resource damages in 1992. That settlement was contained in a Consent Decree whereby AVX paid $72 million, including interest, toward the harbor clean-up and natural resource damages. That Consent Decree included reopener provisions allowing the Governments to institute new proceedings against AVX, including the right to seek to have AVX perform or pay for additional clean-up under certain circumstances.

On April 18, 2012, the United States Environmental Protection Agency issued to AVX a Unilateral Administrative Order directing AVX to perform the remainder of the harbor clean-up, pursuant to the reopener provisions referred to the above.

After settlement negotiations, including mediation, between the parties, on October 10, 2012, the settlement with the Governments was reached whereby AVX was obligated to pay $366.25 million, plus interest computed from August 1, 2012, in three installments over a two-year period for use by the Governments to complete the clean-up of the harbor. The agreement is set forth in a Supplemental Consent Decree that modifies certain provisions of the 1992 Consent Decree, including elimination of the Governments’ right to invoke any clean-up reopener provisions in the future. In addition, the United States Environmental Protection Agency was obligated to withdraw the Unilateral Administrative Order.

On September 19, 2013, The United States District Court approved the settlement. According to the settlement, AVX paid the initial settlement installment of $133.35 million, plus interest on October 18, 2013, and on November 26, 2013, the Unilateral Administrative Order was withdrawn by the United States Environmental Protection Agency.

In accordance with the terms of the Supplemental Consent Decree, AVX is obligated to pay $110.82 million, plus interest on September 19, 2014, and $122.08 million, plus interest on September 21, 2015, or AVX has the option to prepay the remaining settlement balance at any time prior to the due dates of the remaining installments.

AVX and Kyocera recorded a charge with respect to this matter of ¥7,900 million ($100 million) for the year ended March 31, 2012, and ¥21,300 million ($266.25 million) for the nine months ended December 31, 2012, which were included in selling general and administrative expenses in the consolidated statements of income.

 

8


Table of Contents

(4) Consolidated Financial Forecasts for the Year Ending March 31, 2014

For the three months ending March 31, 2014 (the “fourth quarter”), the solar energy business is expected to show continued growth on the back of growing demand in Japan. Sales in the Information Equipment Group are also expected to be solid and exceed the previous forecast. On the other hand, component demand for smartphones and digital cameras is predicted to fall below the previous forecast. In the Electronic Device Group, one-off cost resulting from a revision of certain product portfolio is expected. In addition, sales in the Telecommunications Equipment Group are predicted to fall below the previous expectations due to a change in sales plan for new products.

Taking these factors into account, Kyocera has revised its full-year financial forecasts for the year ending March 31, 2014 announced in October 31, 2013, as follows. Financial forecasts for each of the consolidated reporting segments have been also revised, as set out on the following page.

Kyocera has revised its forecasts of average exchange rates for the fourth quarter from ¥97 to ¥104 against the U.S. dollar and from ¥130 to ¥141 against the Euro. As a result, full-year forecasts of average exchange rates for the year ending March 31, 2014 have been revised to ¥101 against the U.S. dollar and ¥134 against the Euro.

Kyocera will strive to continue securing orders, reducing costs and strengthening its development of new products by leveraging the overall capabilities of the Kyocera Group and will aim to achieve these full-year consolidated financial forecasts for the year ending March 31, 2014.

 

     Results for
the year ended
March 31, 2013
     Forecasts for the year ending
March 31, 2014 announced on
     Increase
(Decrease)
to Results
 
        October 31, 2013
(Previous)
     January 29, 2014
(Revised)
    
     Amount      %      Amount      %      Amount      %      %  
     (Yen in millions, except exchange rates)  

Net sales

   ¥ 1,280,054         100.0       ¥ 1,430,000         100.0       ¥ 1,430,000         100.0         11.7   

Profit from operations

     76,926         6.0         140,000         9.8         115,000         8.0         49.5   

Income before income taxes

     101,363         7.9         150,000         10.5         138,000         9.7         36.1   

Net income attributable to shareholders of Kyocera Corporation

     66,473         5.2         96,000         6.7         84,500         5.9         27.1   

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     181.18                 261.67                 230.32                   

Average US$ exchange rate

     83                 98                 101                   

Average Euro exchange rate

     107                 130                 134                   

Notes:

(1) “Diluted earnings per share attributable to shareholders of Kyocera Corporation” announced on January 29, 2014 (Revised) is computed based on the average number of shares outstanding during nine months ended December 31, 2013.
(2) As Kyocera Corporation undertook a stock split at the ratio of two for one of all common shares on October 1, 2013, “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed under the assumption that the stock split had been undertaken at the beginning of the year ended March 31, 2013 in accordance with standard related to earnings per share.

 

9


Table of Contents

Net Sales by Reporting Segment

 

     Results for
the year ended
March 31, 2013
    Forecasts for the year ending
March 31, 2014 announced on
    Increase
(Decrease)
to Results
 
       October 31, 2013
(Previous)
    January 29, 2014
(Revised)
   
     Amount     %     Amount     %     Amount     %     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 74,852        5.9      ¥ 82,500        5.8      ¥ 79,000        5.5        5.5   

Semiconductor Parts Group

     167,241        13.1        199,000        13.9        187,000        13.1        11.8   

Applied Ceramic Products Group

     211,439        16.5        257,000        18.0        271,000        18.9        28.2   

Electronic Device Group

     271,570        21.2        282,000        19.7        283,000        19.8        4.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     725,102        56.7        820,500        57.4        820,000        57.3        13.1   

Telecommunications Equipment Group

     177,314        13.8        193,000        13.5        185,000        12.9        4.3   

Information Equipment Group

     250,534        19.6        290,000        20.3        300,000        21.0        19.7   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     427,848        33.4        483,000        33.8        485,000        33.9        13.4   

Others

     159,902        12.5        173,000        12.1        171,000        12.0        6.9   

Adjustments and eliminations

     (32,798     (2.6     (46,500     (3.3     (46,000     (3.2       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,280,054        100.0      ¥ 1,430,000        100.0      ¥ 1,430,000        100.0        11.7   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating Profit (Loss) by Reporting Segment   
     Results for
the year ended
March 31, 2013
    Forecasts for the year ending
March 31, 2014 announced on
    Increase
(Decrease)
to Results
 
       October 31, 2013
(Previous)
    January 29, 2014
(Revised)
   
     Amount     %*     Amount     %*     Amount     %*     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 7,614        10.2      ¥ 13,000        15.8      ¥ 10,500        13.3        37.9   

Semiconductor Parts Group

     30,379        18.2        32,000        16.1        30,900        16.5        1.7   

Applied Ceramic Products Group

     17,924        8.5        29,600        11.5        29,600        10.9        65.1   

Electronic Device Group

     (4,014            28,000        9.9        22,100        7.8          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     51,903        7.2        102,600        12.5        93,100        11.4        79.4   

Telecommunications Equipment Group

     1,340        0.8        5,000        2.6        1,900        1.0        41.8   

Information Equipment Group

     21,750        8.7        25,000        8.6        25,900        8.6        19.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     23,090        5.4        30,000        6.2        27,800        5.7        20.4   

Others

     10,542        6.6        6,400        3.7        5,200        3.0        (50.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     85,535        6.7        139,000        9.7        126,100        8.8        47.4   

Corporate and others

     15,828               11,000               11,900               (24.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 101,363        7.9      ¥ 150,000        10.5      ¥ 138,000        9.7        36.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

* % to net sales of each corresponding segment

 

10


Table of Contents

Note: 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. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following:

 

(1) General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia;

 

(2) Economic, political and legal conditions and unexpected changes therein in countries or areas where we operate;

 

(3) Factors that may affect our exports, including the yen’s appreciation, political and economic instability, customs, and inadequate protection of our intellectual property;

 

(4) Fluctuation in exchange rates that may affect the value of our foreign assets or the prices of our products;

 

(5) Intensified competition in product pricing, technological innovation, R&D activities, product quality and speed of delivery;

 

(6) Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

 

(7) Shortages and rising costs of electricity affecting our production and sales activities;

 

(8) The possibility that expansion of production capacity and in-process R&D activities may not produce the desired results;

 

(9) The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect;

 

(10) Inability to secure skilled employees, particularly engineering and technical personnel;

 

(11) The possibility of divulgence of our trade secrets and infringement of our intellectual property rights;

 

(12) The possibility that we may receive notice of claims of infringement of other parties’ intellectual property rights and claims for royalty payments;

 

(13) Increases in our environmental liability and in costs and expenses required to observe obligations imposed by environmental laws and regulations in Japan and other countries;

 

(14) Unintentional conflict with laws and regulations, or the possibility that newly enacted laws and regulations may limit our business operations;

 

(15) Events that may negatively impact our markets or supply chain, including terrorist acts, plague, war and similar events;

 

(16) Earthquakes and other related natural disasters affecting our operational facilities and our markets or supply chain, as well as social and economic infrastructure;

 

(17) Exposure to difficulties in collection of trade receivables due to customers’ worsening financial condition;

 

(18) The possibility of recognition of impairment losses on investment securities held by us due to declines in their value;

 

(19) The possibility that we may record impairment losses on long-lived assets, goodwill and intangible assets;

 

(20) The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be incurred; and

 

(21) Changes in accounting principles.

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

 

11


Table of Contents

2. OTHER INFORMATION

Changes in accounting policies

Recently Adopted Accounting Standards

On April 1, 2013, Kyocera adopted the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2011-10, “Derecognition of in Substance Real Estate—a Scope Clarification.” This accounting standard requires the reporting entity to apply the guidance in Accounting Standards Codification (ASC) 360-20, “Property, Plant, and Equipment—Real Estate Sales” to determine whether it should derecognize the in substance real estate when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On April 1, 2013, Kyocera adopted the FASB’s ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This accounting standard permits an entity to first assess qualitative factors to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the impairment test. An entity is not required to calculate the fair value of the indefinite-lived intangible asset unless the entity determines that it is more likely than not that the indefinite-lived intangible asset is impaired. As this accounting standard did not actually change how the impairment would be calculated, the adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On July 17, 2013, Kyocera adopted the FASB’s ASU No. 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” This accounting standard permits an entity to use the Fed Funds Effective Swap Rate (Overnight Index Swap Rate) as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, “Derivatives and Hedging,” in addition to the interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

Number of shares (common stock)

Cancellation of Treasury Stock

Kyocera Corporation adopted a resolution to cancel treasury stock pursuant to Article 178 of the Company Law of Japan at its meeting of the Board of Directors held on January 29, 2014.

Details of the cancellation are as follows:

 

(1) Type of shares to be cancelled:

   Common stock of Kyocera Corporation

(2) Number of shares to be cancelled:

   5,000,000 shares

(3) Scheduled date of cancellation:

   February 12, 2014

 

12


Table of Contents

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)

 

     March 31, 2013      December 31, 2013      Increase
(Decrease)
 
     Amount     %      Amount     %     
     (Yen in millions)  

Current assets:

            

Cash and cash equivalents

   ¥ 305,454         ¥ 312,457         ¥ 7,003   

Short-term investments in debt securities

     43,893           105,078           61,185   

Other short-term investments

     179,843           140,136           (39,707

Trade notes receivables

     27,061           27,588           527   

Trade accounts receivables

     268,927           264,508           (4,419

Less allowances for doubtful accounts and sales returns

     (4,705        (5,140        (435

Inventories

     296,450           349,635           53,185   

Advance payments

     65,812           61,047           (4,765

Deferred income taxes

     47,349           47,109           (240

Other current assets

     38,299           41,791           3,492   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total current assets

     1,268,383        55.6         1,344,209        49.7         75,826   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-current assets:

            

Investments and advances:

            

Long-term investments in debt and equity securities

     506,490           822,690           316,200   

Other long-term investments

     12,661           14,644           1,983   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total investments and advances

     519,151        22.7         837,334        31.0         318,183   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Property, plant and equipment:

            

Land

     61,808           63,624           1,816   

Buildings

     323,014           344,427           21,413   

Machinery and equipment

     788,692           831,049           42,357   

Construction in progress

     13,546           9,025           (4,521

Less accumulated depreciation

     (918,236        (972,653        (54,417
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total property, plant and equipment

     268,824        11.8         275,472        10.2         6,648   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill

     103,425        4.5         118,555        4.4         15,130   

Intangible assets

     54,583        2.4         61,203        2.2         6,620   

Other assets

     68,487        3.0         66,665        2.5         (1,822
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total non-current assets

     1,014,470        44.4         1,359,229        50.3         344,759   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

   ¥ 2,282,853        100.0       ¥ 2,703,438        100.0       ¥ 420,585   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

13


Table of Contents
      March 31, 2013     December 31, 2013     Increase
(Decrease)
 
     Amount     %     Amount     %    
     (Yen in millions)  

Current liabilities:

          

Short-term borrowings

   ¥ 3,135        ¥ 3,173        ¥ 38   

Current portion of long-term debt

     9,817          11,340          1,523   

Trade notes and accounts payable

     111,249          127,787          16,538   

Other notes and accounts payable

     52,018          49,104          (2,914

Accrued payroll and bonus

     52,420          45,823          (6,597

Accrued income taxes

     22,214          16,415          (5,799

Other accrued liabilities

     39,135          41,401          2,266   

Other current liabilities

     36,642          47,760          11,118   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     326,630        14.3        342,803        12.7        16,173   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current liabilities:

          

Long-term debt

     20,855          22,720          1,865   

Accrued pension and severance liabilities

     36,322          39,650          3,328   

Deferred income taxes

     146,229          254,894          108,665   

Other non-current liabilities

     37,875          29,245          (8,630
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     241,281        10.6        346,509        12.8        105,228   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     567,911        24.9        689,312        25.5        121,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Kyocera Corporation shareholders’ equity:

          

Common stock

     115,703          115,703            

Additional paid-in capital

     163,062          163,108          46   

Retained earnings

     1,368,512          1,412,195          43,683   

Accumulated other comprehensive income

     50,138          296,976          246,838   

Common stock in treasury, at cost

     (51,258       (51,320       (62
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Kyocera Corporation shareholders’ equity

     1,646,157        72.1        1,936,662        71.6        290,505   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     68,785        3.0        77,464        2.9        8,679   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     1,714,942        75.1        2,014,126        74.5        299,184   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   ¥ 2,282,853        100.0      ¥ 2,703,438        100.0      ¥ 420,585   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Note: Accumulated other comprehensive income is as follows:                               
     March 31, 2013     December 31, 2013     Increase
(Decrease)
 
     (Yen in millions)  

Net unrealized gains on securities

     ¥ 135,248        ¥ 333,883      ¥ 198,635   

Net unrealized losses on derivative financial instruments

       (68       (346     (278

Pension adjustments

       (23,415       (24,935     (1,520

Foreign currency translation adjustments

       (61,627       (11,626     50,001   
  

 

 

   

 

 

   

 

 

 

Total

     ¥ 50,138        ¥ 296,976      ¥ 246,838   
  

 

 

   

 

 

   

 

 

 

 

14


Table of Contents

(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)

Consolidated Statements of Income

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2012     2013    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions and shares in thousands, except per share amounts)  

Net sales

   ¥ 926,524        100.0      ¥ 1,071,388        100.0      ¥ 144,864        15.6   

Cost of sales

     686,879        74.1        793,309        74.0        106,430        15.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     239,645        25.9        278,079        26.0        38,434        16.0   

Selling, general and administrative expenses

     188,411        20.4        188,383        17.6        (28     (0.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

     51,234        5.5        89,696        8.4        38,462        75.1   

Other income (expenses):

            

Interest and dividend income

     13,521        1.4        16,937        1.6        3,416        25.3   

Interest expense

     (1,310     (0.1     (1,432     (0.2     (122       

Foreign currency transaction gains, net

     4,304        0.5        3,351        0.3        (953     (22.1

Other, net

     1,133        0.1        1,792        0.2        659        58.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

     17,648        1.9        20,648        1.9        3,000        17.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     68,882        7.4        110,344        10.3        41,462        60.2   

Income taxes

     24,457        2.6        36,756        3.4        12,299        50.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     44,425        4.8        73,588        6.9        29,163        65.6   

Net (income) loss attributable to noncontrolling interests

     545        0.1        (4,224     (0.4     (4,769       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to shareholders of Kyocera Corporation

   ¥ 44,970        4.9      ¥ 69,364        6.5      ¥ 24,394        54.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

            

Net income attributable to shareholders of Kyocera Corporation:

            

Basic

   ¥ 122.57        ¥ 189.07         

Diluted

     122.57          189.07         

Average number of shares of common stock outstanding:

            

Basic

     366,885          366,873         

Diluted

     366,885          366,873         

Notes:

(1) Basic earnings per share attributable to shareholders of Kyocera Corporation was computed based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares of stock outstanding during each period.
(2) “Net income attributable to shareholders of Kyocera Corporation” and “Average number of shares of common stock outstanding” are computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2013.

 

15


Table of Contents

Consolidated Statements of Comprehensive Income

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2012     2013    
     Amount     Amount     Amount  
     (Yen in millions)  

Net income

   ¥ 44,425      ¥ 73,588      ¥ 29,163   
  

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss)—net of taxes

      

Net unrealized gains on securities

     30,123        198,671        168,548   

Net unrealized losses on derivative financial instruments

     (34     (305 )       (271

Pension adjustments

     (1,583     (1,587 )       (4

Foreign currency translation adjustments

     22,615        56,990        34,375   
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     51,121        253,769        202,648   
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     95,546        327,357        231,811   

Comprehensive income (loss) attributable to noncontrolling interests

     (2,345     (11,116 )       (8,771
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to shareholders of Kyocera Corporation

   ¥ 93,201      ¥ 316,241      ¥ 223,040   
  

 

 

   

 

 

   

 

 

 

(3) Notes to the consolidated financial statements

Cautionary Statement for Premise of a Going Concern

None.

Cautionary Statement for Significant Changes in Equity

None.

 

16


Table of Contents

January 29, 2014

To All Persons Concerned,

 

Name of Company Listed:   Kyocera Corporation
Name of Representative:   Goro Yamaguchi, President and Director
  (Code number: 6971, The First Section of the Tokyo Stock Exchange)
Person for inquiry:  

Shoichi Aoki

Director, Managing Executive Officer and General Manager of

Corporate Financial and Accounting Group

(Tel: +81-75-604-3500)

Notice Concerning Cancellation of Treasury Stock

Kyocera Corporation (hereafter the “Company”) hereby announces that at the meeting of its Board of Directors held on January 29, 2014, a resolution was adopted to cancel treasury stock pursuant to Article 178 of the Company Law of Japan.

The details are as follows.

 

1. Reason for Cancellation

The Company holds treasury stock in preparation for the expeditious execution of capital strategies, such as a stock swap, however, the Company will cancel part of its treasury stock in order to enhance shareholder value by reducing the total number of outstanding shares.

 

2. Details of Cancellation

 

(1)  

  Type of shares to be cancelled:

  Common stock of the Company
(2)  

  Number of shares to be cancelled:

 

5,000,000 shares

(1.31% of outstanding shares prior to cancellation)

(3)  

  Scheduled date of cancellation:

  February 12, 2014

(Reference)

 

1.  

Total number of the Company’s shares outstanding after cancellation:

     377,618,580   
2.  

Projected number of treasury stocks after cancellation:

(2.85% of outstanding shares after cancellation)

     10,750,917

 

* Number of treasury stocks after cancellation based on the number of treasury stocks as of December 31, 2013.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki