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 May 2012

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 Business Systems
Administration Group

Date: May 25, 2012


Table of Contents

Information furnished on this form:

EXHIBITS

 

Exhibit
    Number    

   

1.

  Amendment of “Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012”

2.

  Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012


Table of Contents

May 25, 2012

To All Persons Concerned

 

Name of Company Listed:

   Kyocera Corporation

Name of Representative:

   Tetsuo Kuba, President and Director
  

(Code number: 6971, The First Section of the Tokyo Stock Exchange,

The First Section of the Osaka Securities Exchange)

Person for inquiry:

  

Shoichi Aoki

Director, Managing Executive Officer and

General Manager of Corporate Financial and Business Systems

Administration Group

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

Amendment of “Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012”

This is to advise you that we hereby amend the information contained in the “Consolidated Financial Results  of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012” released on April 26, 2012.

1. Reason for amendment

On April 26, 2012, Kyocera Corporation released the consolidated financial results of Kyocera Corporation and its subsidiaries (Kyocera) for the year ended March 31, 2012 (the Report). However, after such release, AVX Corporation (AVX), a consolidated subsidiary of Kyocera in the U.S., determined that it is necessary for AVX to include an environmental remediation charge related to environmental issues at the New Bedford Harbor Superfund Site in Massachusetts, the U.S. in its consolidated results for the year ended March 31, 2012. In accordance with this record of an environmental remediation charge, Kyocera revised its consolidated financial results for the year ended March 31, 2012.

2. Matters to be amended

Amendments are indicated by underscore.

 

  1) Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended  March 31, 2012

 

  2) 1. BUSUNESS RESULTS (1) Analysis of Business Results

 

  3) 3. CONSOLIDATED FINANCIAL STATEMENTS (1) Consolidated Balance Sheets

 

  4) 3. CONSOLIDATED FINANCIAL STATEMENTS (2) Consolidated Statements of Income

 

  5) 3. CONSOLIDATED FINANCIAL STATEMENTS (3) Consolidated Statements of Equity

 

  6) 3. CONSOLIDATED FINANCIAL STATEMENTS (4) Consolidated Statements of Cash Flows

 

  7) 3. CONSOLIDATED FINANCIAL STATEMENTS (6) Segment Information

 

  8) 3. CONSOLIDATED FINANCIAL STATEMENTS (8) Material Subsequent Event and (10) Other Note

 

1


Table of Contents

1) Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012

(page 1 of the Report)

<Before Amendment>

1. Consolidated Financial Results for the Year Ended March 31, 2012 (Fiscal 2012)

 

(1) Consolidated results of operations           (% of change from previous year)   
      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              %      

Fiscal 2012

     1,190,870         (6.0     105,575         (32.3 )      122,793         (28.7 )      82,901         (32.3 ) 

Fiscal 2011

     1,266,924         18.0        155,924         144.2        172,332         183.5        122,448         205.4   

(Note) Comprehensive income:

82,975 million yen in the year ended March 31, 2012, (17.4)% of change from previous year

100,502 million yen in the year ended March 31, 2011, 113.2% 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
     Ratio of net income
attributable to
shareholders of
Kyocera Corporation
to shareholders’ equity
     Ratio of income
before income taxes

to total assets
     Ratio of profit
from operations
to net sales
 
     Yen      Yen      %      %      %  

Fiscal 2012

     451.90         451.90         5.7         6.2         8.9   

Fiscal 2011

     667.23         667.23         8.9         9.1         12.3   

(Reference) Equity in losses of affiliates and unconsolidated subsidiaries:

(36) million yen in the year ended March 31, 2012

   (160) million yen in the year ended March 31, 2011

(2) Consolidated financial condition

 

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

March 31, 2012

     1,989,895         1,539,366         1,473,186         74.1         8,030.72   

March 31, 2011

     1,946,566         1,483,359         1,420,263         73.0         7,739.31   

2. Dividends

 

    Dividends per share     Annual aggregate    

Dividends to

net income

attributable to

    Dividends to  
    End of
first quarter
    End of
second quarter
    End of
third quarter
    Year-end     Annual     amount  of
dividends
    shareholders of
Kyocera Corporation
    Kyocera  Corporation
shareholders’ equity
 
    Yen     Yen     Yen     Yen     Yen     Million yen     %     %  

Fiscal 2011

           60.00               70.00        130.00        23,857        19.5        1.7   

Fiscal 2012

           60.00               60.00        120.00        22,013        26.6        1.5   

Fiscal 2013 (forecast)

                                120.00               22.9          

(Note) Dividends per share for the year ending March 31, 2013 are forecasted to be 120.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013 (Fiscal 2013)

(% of change from the 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  

Fiscal 2013

     1,370,000         15.0         140,000         32.6         151,200         23.1         96,000         15.8         523.30   

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

 

2


Table of Contents

<After Amendment>

1. Consolidated Financial Results for the Year Ended March 31, 2012 (Fiscal 2012)

 

(1) Consolidated results of operations

          (% of change from previous year)   
      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      %  

Fiscal 2012

     1,190,870         (6.0     97,675         (37.4 )      114,893         (33.3 )      79,357         (35.2 ) 

Fiscal 2011

     1,266,924         18.0        155,924         144.2        172,332         183.5        122,448         205.4   

(Note) Comprehensive income:

77,850 million yen in the year ended March 31, 2012, (22.5)% of change from previous year

100,502 million yen in the year ended March 31, 2011, 113.2% 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
     Ratio of net income
attributable to
shareholders of
Kyocera Corporation
to shareholders’ equity
     Ratio of income
before income taxes
to total assets
     Ratio of profit
from operations
to net sales
 
     Yen      Yen      %      %      %  

Fiscal 2012

     432.58         432.58         5.5         5.8         8.2   

Fiscal 2011

     667.23         667.23         8.9         9.1         12.3   

(Reference) Equity in losses of affiliates and unconsolidated subsidiaries:

(36) million yen in the year ended March 31, 2012

   (160) million yen in the year ended March 31, 2011

(2) Consolidated financial condition

 

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

March 31, 2012

     1,994,103         1,534,241         1,469,505         73.7         8,010.65   

March 31, 2011

     1,946,566         1,483,359         1,420,263         73.0         7,739.31   

2. Dividends

 

    Dividends per share     Annual aggregate     Dividends to
net income
attributable to
    Dividends to  
    End of
first quarter
    End of
second quarter
    End of
third quarter
    Year-end     Annual     amount of
dividends
    shareholders of
Kyocera Corporation
    Kyocera  Corporation
shareholders’ equity
 
    Yen     Yen     Yen     Yen     Yen     Million yen     %     %  

Fiscal 2011

    —          60.00        —          70.00        130.00        23,857        19.5        1.7   

Fiscal 2012

    —          60.00        —          60.00        120.00        22,013        27.7        1.5   

Fiscal 2013 (forecast)

    —          —          —          —          120.00        —          22.9        —     

(Note) Dividends per share for the year ending March 31, 2013 are forecasted to be 120.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013 (Fiscal 2013)

(% of change from the 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  

Fiscal 2013

     1,370,000         15.0         140,000         43.3         151,200         31.6         96,000         21.0         523.30   

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

 

3


Table of Contents

2) 1. BUSINESS RESULTS

(1) Analysis of Business Results (page 3 of the Report)

<Before Amendment>

Consolidated Financial Results

Average exchange rates for fiscal 2012 were ¥79 to the U.S. dollar, marking appreciation of ¥7 (approximately 8%) from ¥86 for fiscal 2011, and ¥109 to the Euro, marking appreciation of ¥4 (approximately 4%) from ¥113 for fiscal 2011. As a result, net sales and income before income taxes for fiscal 2012 were adversely affected by approximately ¥40 billion and ¥10 billion, respectively, compared with fiscal 2011.

Consolidated net sales for fiscal 2012 decreased by ¥76,054 million, or 6.0%, to ¥1,190,870 million, compared with ¥1,266,924 million for fiscal 2011, due primarily to a decline in component demand for digital consumer equipment and a decrease in sales in the Telecommunications Equipment Group in addition to the impact of the yen’s appreciation. Profit from operations decreased by ¥50,349 million, or 32.3%, to ¥105,575 million, compared with ¥155,924 million for fiscal 2011. In addition, income before income taxes decreased by ¥49,539 million, or 28.7%, to ¥122,793 million, compared with ¥172,332 million for fiscal 2011. Net income attributable to shareholders of Kyocera Corporation for fiscal 2012 decreased by ¥39,547 million, or 32.3%, to ¥82,901 million, compared with ¥122,448 million for fiscal 2011.

 

     Years ended March 31,      Increase  
     2011      2012      (Decrease)  
     Amount      %      Amount      %      Amount     %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,266,924         100.0       ¥ 1,190,870         100.0       ¥ (76,054     (6.0

Profit from operations

     155,924         12.3         105,575         8.9         (50,349 )      (32.3 ) 

Income before income taxes

     172,332         13.6         122,793         10.3         (49,539 )      (28.7 ) 

Net income attributable to shareholders of Kyocera Corporation

     122,448         9.7         82,901         7.0         (39,547 )      (32.3 ) 

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     667.23                 451.90                          

Average US$ exchange rate

     86                 79                          

Average Euro exchange rate

     113                 109                          

 

4


Table of Contents

<After Amendment>

Consolidated Financial Results

Average exchange rates for fiscal 2012 were ¥79 to the U.S. dollar, marking appreciation of ¥7 (approximately 8%) from ¥86 for fiscal 2011, and ¥109 to the Euro, marking appreciation of ¥4 (approximately 4%) from ¥113 for fiscal 2011. As a result, net sales and income before income taxes for fiscal 2012 were adversely affected by approximately ¥40 billion and ¥10 billion, respectively, compared with fiscal 2011.

Consolidated net sales for fiscal 2012 decreased by ¥76,054 million, or 6.0%, to ¥1,190,870 million, compared with ¥1,266,924 million for fiscal 2011, due primarily to a decline in component demand for digital consumer equipment and a decrease in sales in the Telecommunications Equipment Group in addition to the impact of the yen’s appreciation. Profit from operations decreased by ¥58,249 million, or 37.4%, to ¥97,675 million, compared with ¥155,924 million for fiscal 2011. In addition, income before income taxes decreased by ¥57,439 million, or 33.3%, to ¥114,893 million, compared with ¥172,332 million for fiscal 2011. Net income attributable to shareholders of Kyocera Corporation for fiscal 2012 decreased by ¥43,091 million, or 35.2%, to ¥79,357 million, compared with ¥122,448 million for fiscal 2011.

 

     Years ended March 31,      Increase  
     2011      2012      (Decrease)  
     Amount      %      Amount      %      Amount     %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,266,924         100.0       ¥ 1,190,870         100.0       ¥ (76,054     (6.0

Profit from operations

     155,924         12.3         97,675         8.2         (58,249 )      (37.4 ) 

Income before income taxes

     172,332         13.6         114,893         9.6         (57,439 )      (33.3 ) 

Net income attributable to shareholders of Kyocera Corporation

     122,448         9.7         79,357         6.7         (43,091 )      (35.2 ) 

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     667.23                 432.58                          

Average US$ exchange rate

     86                 79                          

Average Euro exchange rate

     113                 109                          

 

5


Table of Contents

(page 4 and 5 of the Report)

<Before Amendment>

4) Electronic Device Group

Component demand was generally sluggish due to stagnation in production activities for digital consumer equipment which reflected the impact of the Great East Japan Earthquake and the floods in Thailand. These factors, in addition to the yen’s appreciation, led to decreases in sales and operating profit in this reporting segment compared with fiscal 2011.

Operating Profit by Reporting Segment

 

     Years ended March 31,      Increase  
     2011      2012      (Decrease)  
     Amount     %*      Amount     %*      Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 11,969        15.7       ¥ 12,622        15.7       ¥ 653        5.5   

Semiconductor Parts Group

     37,331        21.4         27,754        18.1         (9,577     (25.7

Applied Ceramic Products Group

     29,049        14.7         6,459        3.6         (22,590     (77.8

Electronic Device Group

     41,646        17.2         23,936        10.5         (17,710 )      (42.5 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Components Business

     119,995        17.4         70,771        11.0         (49,224 )      (41.0 ) 

Telecommunications Equipment Group

     2,121        0.9         1,469        0.8         (652     (30.7

Information Equipment Group

     25,845        10.8         29,451        12.1         3,606        14.0   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Equipment Business

     27,966        6.0         30,920        7.3         2,954        10.6   

Others

     9,651        6.9         8,054        5.3         (1,597     (16.5
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit

     157,612        12.4         109,745        9.2         (47,867 )      (30.4 ) 

Corporate

     16,882                13,876                (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160             (36             124          

Adjustments and eliminations

     (2,002             (792             1,210          
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332        13.6       ¥ 122,793        10.3       ¥ (49,539 )      (28.7 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

6


Table of Contents

<After Amendment>

4) Electronic Device Group

Sales and operating profit in this reporting segment decreased compared with fiscal 2011 due to sluggish component demand affected by the Great East Japan Earthquake and the floods in Thailand, as well as an impact of the yen’s appreciation. In addition, AVX Corporation, a consolidated subsidiary, recorded an environmental remediation charge in fiscal 2012.

Operating Profit by Reporting Segment

 

     Years ended March 31,      Increase  
     2011      2012      (Decrease)  
     Amount     %*      Amount     %*      Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 11,969        15.7       ¥ 12,622        15.7       ¥ 653        5.5   

Semiconductor Parts Group

     37,331        21.4         27,754        18.1         (9,577     (25.7

Applied Ceramic Products Group

     29,049        14.7         6,459        3.6         (22,590     (77.8

Electronic Device Group

     41,646        17.2         16,036        7.0         (25,610 )      (61.5 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Components Business

     119,995        17.4         62,871        9.8         (57,124 )      (47.6 ) 

Telecommunications Equipment Group

     2,121        0.9         1,469        0.8         (652     (30.7

Information Equipment Group

     25,845        10.8         29,451        12.1         3,606        14.0   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Equipment Business

     27,966        6.0         30,920        7.3         2,954        10.6   

Others

     9,651        6.9         8,054        5.3         (1,597     (16.5
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit

     157,612        12.4         101,845        8.6         (55,767 )      (35.4 ) 

Corporate

     16,882                13,876                (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160             (36             124          

Adjustments and eliminations

     (2,002             (792             1,210          
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332        13.6       ¥ 114,893        9.6       ¥ (57,439 )      (33.3 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

7


Table of Contents

(page 7 and 8 of the Report)

 

<Before Amendment>

[Consolidated Forecasts for the Year Ending March 31, 2013]

Specific financial forecasts for fiscal 2013 are as follows.

 

     Results for
the year ended
March 31, 2012
     Forecasts for
the year ending
March 31, 2013
     Increase
(Decrease)
 
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,190,870         100.0       ¥ 1,370,000         100.0       ¥ 179,130         15.0   

Profit from operations

     105,575         8.9         140,000         10.2         34,425         32.6   

Income before income taxes

     122,793         10.3         151,200         11.0         28,407         23.1   

Net income attributable to shareholders of Kyocera Corporation

     82,901         7.0         96,000         7.0         13,099         15.8   

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     451.90                 523.30                           

Average US$ exchange rate

     79                 80                           

Average Euro exchange rate

     109                 105                           

Note:

Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

Operating Profit by Reporting Segment

 

     Results for
the year ended
March 31, 2012
     Forecasts for
the year ending
March 31, 2013
     Increase
(Decrease)
 
     Amount      %*      Amount      %*      Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 12,622         15.7       ¥ 14,100         15.7       ¥ 1,478        11.7   

Semiconductor Parts Group

     27,754         18.1         32,600         18.1         4,846        17.5   

Applied Ceramic Products Group

     6,459         3.6         17,000         7.7         10,541        163.2   

Electronic Device Group

     23,936         10.5         27,000         8.7         3,064        12.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Components Business

     70,771         11.0         90,700         11.3         19,929        28.2   

Telecommunications Equipment Group

     1,469         0.8         9,000         5.0         7,531        512.7   

Information Equipment Group

     29,451         12.1         29,500         11.4         49        0.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Equipment Business

     30,920         7.3         38,500         8.8         7,580        24.5   

Others

     8,054         5.3         10,000         6.3         1,946        24.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating profit

     109,745         9.2         139,200         10.2         29,455        26.8   

Corporate and others

     13,048                 12,000                 (1,048     (8.0
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

   ¥ 122,793         10.3       ¥ 151,200         11.0       ¥ 28,407        23.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

8


Table of Contents

<After Amendment>

[Consolidated Forecasts for the Year Ending March 31, 2013]

Specific financial forecasts for fiscal 2013 are as follows.

 

     Results for
the year ended
March 31, 2012
     Forecasts for
the year ending
March 31, 2013
     Increase
(Decrease)
 
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,190,870         100.0       ¥ 1,370,000         100.0       ¥ 179,130         15.0   

Profit from operations

     97,675         8.2         140,000         10.2         42,325         43.3   

Income before income taxes

     114,893         9.6         151,200         11.0         36,307         31.6   

Net income attributable to shareholders of Kyocera Corporation

     79,357         6.7         96,000         7.0         16,643         21.0   

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     432.58                 523.30                           

Average US$ exchange rate

     79                 80                           

Average Euro exchange rate

     109                 105                           

Note:

Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

Operating Profit by Reporting Segment

 

     Results for
the year ended
March 31, 2012
     Forecasts for
the year ending
March 31, 2013
     Increase
(Decrease)
 
     Amount      %*      Amount      %*      Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 12,622         15.7       ¥ 14,100         15.7       ¥ 1,478        11.7   

Semiconductor Parts Group

     27,754         18.1         32,600         18.1         4,846        17.5   

Applied Ceramic Products Group

     6,459         3.6         17,000         7.7         10,541        163.2   

Electronic Device Group

     16,036         7.0         27,000         8.7         10,964        68.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Components Business

     62,871         9.8         90,700         11.3         27,829        44.3   

Telecommunications Equipment Group

     1,469         0.8         9,000         5.0         7,531        512.7   

Information Equipment Group

     29,451         12.1         29,500         11.4         49        0.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Equipment Business

     30,920         7.3         38,500         8.8         7,580        24.5   

Others

     8,054         5.3         10,000         6.3         1,946        24.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating profit

     101,845         8.6         139,200         10.2         37,355        36.7   

Corporate and others

     13,048                 12,000                 (1,048     (8.0
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

   ¥ 114,893         9.6       ¥ 151,200         11.0       ¥ 36,307        31.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

9


Table of Contents

3) 3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (page 13 and 14 of the Report)

<Before Amendment>

 

      March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount     %      Amount     %     
     (Yen in millions)  

Current assets:

            

Cash and cash equivalents

   ¥ 273,471         ¥ 273,288         ¥ (183)   

Short-term investments in debt securities

     44,012           47,175           3,163  

Other short-term investments

     201,817           158,765           (43,052

Trade notes receivables

     19,536           19,349           (187

Trade accounts receivables

     208,404           225,578           17,174   

Less allowances for doubtful accounts and sales returns

     (4,795        (4,583        212   

Inventories

     232,899           270,336           37,437   

Advance payments

     72,207           68,685           (3,522

Deferred income taxes

     43,035           42,014           (1,021 ) 

Other current assets

     38,915           39,828           913   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total current assets

     1,129,501        58.0         1,140,435        57.3         10,934   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-current assets:

            

Investments and advances:

            

Investments in and advances to affiliates and unconsolidated subsidiaries

     1,219           1,597           378   

Long-term investments in debt and equity securities

     377,075           372,779           (4,296

Other long-term investments

     15,585           17,501           1,916   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total investments and advances

     393,879        20.3         391,877        19.7         (2,002
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Property, plant and equipment:

            

Land

     59,638           60,600           962   

Buildings

     288,992           301,911           12,919   

Machinery and equipment

     706,474           719,146           12,672   

Construction in progress

     7,227           17,035           9,808   

Less accumulated depreciation

     (814,577        (838,155        (23,578
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total property, plant and equipment

     247,754        12.7         260,537        13.1         12,783   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill

     64,701        3.3         89,039        4.5         24,338   

Intangible assets

     42,160        2.2         49,653        2.5         7,493   

Other assets

     68,571        3.5         58,354        2.9         (10,217 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total non-current assets

     817,065        42.0         849,460        42.7         32,395   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

   ¥ 1,946,566        100.0       ¥  1,989,895        100.0       ¥  43,329   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

10


Table of Contents

<After Amendment>

 

     March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount     %      Amount     %     
     (Yen in millions)  

Current assets:

            

Cash and cash equivalents

   ¥ 273,471         ¥ 273,288           ¥ (183)   

Short-term investments in debt securities

     44,012           47,175           3,163  

Other short-term investments

     201,817           158,765           (43,052

Trade notes receivables

     19,536           19,349           (187

Trade accounts receivables

     208,404           225,578           17,174   

Less allowances for doubtful accounts and sales returns

     (4,795        (4,583        212   

Inventories

     232,899           270,336           37,437   

Advance payments

     72,207           68,685           (3,522

Deferred income taxes

     43,035           45,049           2,014   

Other current assets

     38,915           40,961           2,046   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total current assets

     1,129,501        58.0         1,144,603        57.4         15,102   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-current assets:

            

Investments and advances:

            

Investments in and advances to affiliates and unconsolidated subsidiaries

  

 

1,219

  

    

 

1,597

  

       378   

Long-term investments in debt and equity securities

     377,075           372,779           (4,296

Other long-term investments

     15,585           17,501           1,916   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total investments and advances

     393,879        20.3         391,877        19.6         (2,002
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Property, plant and equipment:

            

Land

     59,638           60,600           962   

Buildings

     288,992           301,911           12,919   

Machinery and equipment

     706,474           719,146           12,672   

Construction in progress

     7,227           17,035           9,808   

Less accumulated depreciation

     (814,577        (838,155        (23,578
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total property, plant and equipment

     247,754        12.7         260,537        13.1         12,783   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill

     64,701        3.3         89,039        4.5         24,338   

Intangible assets

     42,160        2.2         49,653        2.5         7,493   

Other assets

     68,571        3.5         58,394        2.9         (10,177 ) 
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total non-current assets

     817,065        42.0         849,500        42.6         32,435   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

   ¥ 1,946,566        100.0       ¥ 1,994,103        100.0       ¥ 47,537   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

11


Table of Contents

<Before Amendment>

 

      March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     %     Amount     %    
     (Yen in millions)  

Current liabilities:

          

Short-term borrowings

   ¥ 7,852        ¥ 4,062        ¥ (3,790

Current portion of long-term debt

     10,687          10,610          (77

Trade notes and accounts payable

     101,265          102,699          1,434   

Other notes and accounts payable

     61,226          60,993          (233

Accrued payroll and bonus

     49,092          49,880          788   

Accrued income taxes

     18,069          12,363          (5,706 ) 

Other accrued liabilities

     24,337          21,740          (2,597 ) 

Other current liabilities

     28,087          29,368          1,281   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     300,615        15.4        291,715        14.6        (8,900 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current liabilities:

          

Long-term debt

     24,538          21,197          (3,341

Accrued pension and severance liabilities

     28,924          32,441          3,517   

Deferred income taxes

     90,005          90,179          174   

Other non-current liabilities

     19,125          14,997          (4,128
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     162,592        8.4        158,814        8.0        (3,778
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     463,207        23.8        450,529        22.6        (12,678 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Kyocera Corporation shareholders’ equity:

          

Common stock

     115,703          115,703            

Additional paid-in capital

     162,336          162,620          284   

Retained earnings

     1,268,548          1,327,596          59,048   

Accumulated other comprehensive income

     (75,633       (81,505 )        (5,872 ) 

Treasury stock, at cost

     (50,691       (51,228       (537
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Kyocera Corporation shareholders’ equity

     1,420,263        73.0        1,473,186        74.1        52,923   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     63,096        3.2        66,180        3.3        3,084   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     1,483,359        76.2        1,539,366        77.4        56,007   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   ¥ 1,946,566        100.0      ¥ 1,989,895        100.0      ¥ 43,329   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Note: Accumulated other comprehensive income is as follows:           
      March 31,     Increase
(Decrease)
 
     2011     2012    
     (Yen in millions)  

Net unrealized gains on securities

   ¥          32,235      ¥          40,735      ¥ 8,500   

Net unrealized losses on derivative financial instruments

       (29       (70     (41

Pension adjustments

       (3,534       (12,290     (8,756

Foreign currency translation adjustments

       (104,305       (109,880 )      (5,575 ) 

Total

   ¥          (75,633   ¥          (81,505 )    ¥ (5,872 ) 

 

12


Table of Contents

<After Amendment>

 

      March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     %     Amount     %    
     (Yen in millions)  

Current liabilities:

          

Short-term borrowings

   ¥ 7,852        ¥ 4,062        ¥ (3,790

Current portion of long-term debt

     10,687          10,610          (77

Trade notes and accounts payable

     101,265          102,699          1,434   

Other notes and accounts payable

     61,226          60,993          (233

Accrued payroll and bonus

     49,092          49,880          788   

Accrued income taxes

     18,069          13,496          (4,573 ) 

Other accrued liabilities

     24,337          29,940          5,603   

Other current liabilities

     28,087          29,368          1,281   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     300,615        15.4        301,048        15.1        433   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current liabilities:

          

Long-term debt

     24,538          21,197          (3,341

Accrued pension and severance liabilities

     28,924          32,441          3,517   

Deferred income taxes

     90,005          90,179          174   

Other non-current liabilities

     19,125          14,997          (4,128
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     162,592        8.4        158,814        8.0        (3,778
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     463,207        23.8        459,862        23.1        (3,345 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Kyocera Corporation shareholders’ equity:

          

Common stock

     115,703          115,703            

Additional paid-in capital

     162,336          162,617          281   

Retained earnings

     1,268,548          1,324,052          55,504   

Accumulated other comprehensive income

     (75,633       (81,639 )        (6,006 ) 

Treasury stock, at cost

     (50,691       (51,228       (537
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Kyocera Corporation shareholders’ equity

     1,420,263        73.0        1,469,505        73.7        49,242   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     63,096        3.2        64,736        3.2        1,640   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     1,483,359        76.2        1,534,241        76.9        50,882   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   ¥ 1,946,566        100.0      ¥ 1,994,103        100.0      ¥ 47,537   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Note: Accumulated other comprehensive income is as follows:           
      March 31,     Increase
(Decrease)
 
     2011     2012    
     (Yen in millions)  

Net unrealized gains on securities

   ¥          32,235      ¥          40,735      ¥ 8,500   

Net unrealized losses on derivative financial instruments

       (29       (70     (41

Pension adjustments

       (3,534       (12,290     (8,756

Foreign currency translation adjustments

       (104,305       (110,014 )      (5,709 ) 

Total

   ¥          (75,633   ¥        ¥ (81,639 )    ¥ (6,006 ) 

 

13


Table of Contents

4) 3. CONSOLIDATED FINANCIAL STATEMENTS

(2) Consolidated Statements of Income (page 15 of the Report)

<Before Amendment>

 

    Years ended March 31,     Increase
(Decrease)
 
    2011     2012    
    Amount     %     Amount     %     Amount     %  
    (Yen in millions and shares in thousands, except per share amounts)  

Net sales

    ¥1,266,924        100.0        ¥1,190,870        100.0        ¥(76,054     (6.0

Cost of sales

    888,869        70.2        870,143        73.1        (18,726     (2.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    378,055        29.8        320,727        26.9        (57,328     (15.2

Selling, general and administrative expenses

    222,131        17.5        215,152        18.0        (6,979 )      (3.1 ) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

    155,924        12.3        105,575        8.9        (50,349 )      (32.3 ) 

Other income (expenses):

           

Interest and dividend income

    12,963        1.0        13,966        1.2        1,003        7.7   

Interest expense

    (2,259     (0.2     (2,042     (0.2     217          

Foreign currency transaction gains, net

    3,824        0.3        4,533        0.4        709        18.5   

Equity in losses of affiliates and unconsolidated subsidiaries

    (160     (0.0     (36     (0.0     124          

Other, net

    2,040        0.2        797        0.0        (1,243     (60.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

    16,408        1.3        17,218        1.4        810        4.9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    172,332        13.6        122,793        10.3        (49,539 )      (28.7 ) 

Income taxes

    42,214        3.3        33,098        2.8        (9,116 )      (21.6 ) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    130,118        10.3        89,695        7.5        (40,423 )      (31.1 ) 

Net income attributable to noncontrolling interests

    (7,670     (0.6     (6,794 )      (0.5 )      876          
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to shareholders of Kyocera Corporation

  ¥ 122,448        9.7      ¥ 82,901        7.0      ¥ (39,547 )      (32.3 ) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

           

Net income attributable to shareholders of Kyocera Corporation:

           

Basic

  ¥ 667.23        ¥ 451.90         

Diluted

  ¥ 667.23        ¥ 451.90         

Average number of shares of common stock outstanding:

           

Basic

    183,517          183,451         

Diluted

    183,517          183,451         

Note:

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 was computed based on the diluted average number of shares of stock outstanding during each period.

 

14


Table of Contents

<After Amendment>

 

     Years ended March 31,     Increase (Decrease)  
     2011     2012    
     Amount         %         Amount         %         Amount         %      
     (Yen in millions and shares in thousands, except per share amounts)  

Net sales

     ¥1,266,924        100.0        ¥1,190,870        100.0        ¥(76,054     (6.0

Cost of sales

     888,869        70.2        870,143        73.1        (18,726     (2.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     378,055        29.8        320,727        26.9        (57,328     (15.2

Selling, general and administrative expenses

     222,131        17.5        223,052        18.7        921        0.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

     155,924        12.3        97,675        8.2        (58,249 )      (37.4 ) 

Other income (expenses):

            

Interest and dividend income

     12,963        1.0        13,966        1.2        1,003        7.7   

Interest expense

     (2,259     (0.2     (2,042     (0.2     217          

Foreign currency transaction gains, net

     3,824        0.3        4,533        0.4        709        18.5   

Equity in losses of affiliates and unconsolidated subsidiaries

     (160     (0.0     (36     (0.0     124          

Other, net

     2,040        0.2        797        0.0        (1,243     (60.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

     16,408        1.3        17,218        1.4        810        4.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     172,332        13.6        114,893        9.6        (57,439 )      (33.3 ) 

Income taxes

     42,214        3.3        30,135        2.5        (12,079 )      (28.6 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     130,118        10.3        84,758        7.1        (45,360 )      (34.9 ) 

Net income attributable to noncontrolling interests

     (7,670     (0.6     (5,401 )      (0.4 )      2,269          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to shareholders of Kyocera Corporation

   ¥ 122,448        9.7      ¥ 79,357        6.7      ¥ (43,091 )      (35.2 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

            

Net income attributable to shareholders of Kyocera Corporation:

            

Basic

   ¥ 667.23        ¥ 432.58         

Diluted

   ¥ 667.23        ¥ 432.58         

Average number of shares of common stock outstanding:

            

Basic

     183,517          183,451         

Diluted

     183,517          183,451         

Note:

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 was computed based on the diluted average number of shares of stock outstanding during each period.

 

15


Table of Contents

5) 3. CONSOLIDATED FINANCIAL STATEMENTS

(3) Consolidated Statements of Equity (page 16 of the Report)

<Before Amendment>

 

    Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Accumulated
other
comprehensive
income
    Treasury
stock
    Kyocera
Corporation
shareholders’
equity
    Noncontrolling
interests
    Total
equity
 
    (Yen in millions and shares in thousands)  

Balance at March 31, 2010 (183,521)

  ¥ 115,703      ¥ 163,044      ¥ 1,168,122      ¥ (51,010   ¥ (50,624   ¥ 1,345,235      ¥ 62,027      ¥ 1,407,262   

Comprehensive income:

               

Net income

        122,448            122,448        7,670        130,118   

Other comprehensive income

          (24,572       (24,572     (5,044     (29,616
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              97,876        2,626        100,502   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (22,022         (22,022       (22,022

Cash dividends paid to noncontrolling interests

                (1,875     (1,875

Purchase of treasury stock (8)

            (69     (69       (69

Reissuance of treasury stock (0)

      0            2        2          2   

Stock option plan of subsidiaries

      151              151        60        211   

Other

      (859       (51       (910     258        (652
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2011 (183,513)

    115,703        162,336        1,268,548        (75,633     (50,691     1,420,263        63,096        1,483,359   

Comprehensive income:

               

Net income

        82,901            82,901        6,794        89,695   

Other comprehensive income

          (5,693 )        (5,693 )      (1,027 )      (6,720 ) 
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              77,208        5,767        82,975   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (23,853         (23,853       (23,853

Cash dividends paid to noncontrolling interests

                (2,124     (2,124

Purchase of treasury stock (69)

            (540     (540       (540

Reissuance of treasury stock (0)

      0            3        3          3   

Stock option plan of subsidiaries

      103              103        41        144   

Other

      181          (179       2        (600 )      (598
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2012 (183,444)

  ¥ 115,703      ¥ 162,620      ¥ 1,327,596      ¥ (81,505 )    ¥ (51,228   ¥ 1,473,186      ¥ 66,180      ¥ 1,539,366   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

16


Table of Contents

<After Amendment>

 

    Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Accumulated
other
comprehensive
income
    Treasury
stock
    Kyocera
Corporation
shareholders’
equity
    Noncontrolling
interests
    Total
equity
 
    (Yen in millions and shares in thousands)  

Balance at March 31, 2010 (183,521)

  ¥ 115,703      ¥ 163,044      ¥ 1,168,122      ¥ (51,010   ¥ (50,624   ¥ 1,345,235      ¥ 62,027      ¥ 1,407,262   

Comprehensive income:

               

Net income

        122,448            122,448        7,670        130,118   

Other comprehensive income

          (24,572       (24,572     (5,044     (29,616
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              97,876        2,626        100,502   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (22,022         (22,022       (22,022

Cash dividends paid to noncontrolling interests

                (1,875     (1,875

Purchase of treasury stock (8)

            (69     (69       (69

Reissuance of treasury stock (0)

      0            2        2          2   

Stock option plan of subsidiaries

      151              151        60        211   

Other

      (859       (51       (910     258        (652
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2011 (183,513)

    115,703        162,336        1,268,548        (75,633     (50,691     1,420,263        63,096        1,483,359   

Comprehensive income:

               

Net income

        79,357            79,357        5,401        84,758   

Other comprehensive income

          (5,827 )        (5,827 )      (1,081 )      (6,908 ) 
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              73,530        4,320        77,850   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (23,853         (23,853       (23,853

Cash dividends paid to noncontrolling interests

                (2,124     (2,124

Purchase of treasury stock (69)

            (540     (540       (540

Reissuance of treasury stock (0)

      0            3        3          3   

Stock option plan of subsidiaries

      103              103        41        144   

Other

      178          (179       (1 )      (597 )      (598
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2012 (183,444)

  ¥ 115,703      ¥ 162,617      ¥ 1,324,052      ¥ (81,639 )    ¥
(51,228

  ¥ 1,469,505      ¥ 64,736      ¥ 1,534,241   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

17


Table of Contents

6) 3. CONSOLIDATED FINANCIAL STATEMENTS

(4) Consolidated Statements of Cash Flows (page 17 of the Report)

<Before Amendment>

 

     Years ended March 31,  
     2011     2012  
     (Yen in millions)  

Cash flows from operating activities:

    

Net income

   ¥ 130,118      ¥ 89,695   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     71,544        73,120   

Provision for doubtful accounts and loss on bad debts

     2,039        370   

Write-down of inventories

     5,291        11,486   

Deferred income taxes

     6,470        (1,101 ) 

Equity in losses of affiliates and unconsolidated subsidiaries

     160        36   

Foreign currency adjustments

     506        (759

Change in assets and liabilities:

    

Increase in receivables

     (38,043     (2,712 ) 

Increase in inventories

     (69,368     (39,762

(Increase) decrease in advance payment

     (20,008     3,507   

Increase in other current assets

     (616     (1,094

Increase (decrease) in notes and accounts payable

     29,422        (10,092

Increase (decrease) in accrued income taxes

     2,039        (7,771 ) 

Increase (decrease) in other current liabilities

     3,033        (3,489 ) 

Decrease in other non-current liabilities

     (2,871     (5,287

Other, net

     (29     2,918   
  

 

 

   

 

 

 

Net cash provided by operating activities

     119,687        109,065   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Payments for purchases of available-for-sale securities

     (11,837     (18,970

Payments for purchases of held-to-maturity securities

     (67,174     (74,369

Payments for purchases of other securities

     (5,173     (149

Proceeds from sales and maturities of available-for-sale securities

     9,568        29,346   

Proceeds from maturities of held-to-maturity securities

     42,534        74,083   

Acquisitions of businesses, net of cash acquired

     (1,581     (35,454

Payments for purchases of property, plant and equipment

     (65,844     (67,765

Payments for purchases of intangible assets

     (6,568     (6,744

Proceeds from sales of property, plant and equipment, and intangible assets

     491        939   

Acquisition of time deposits and certificate of deposits

     (303,482     (258,032

Withdrawal of time deposits and certificate of deposits

     287,376        299,531   

Other, net

     326        1,533   
  

 

 

   

 

 

 

Net cash used in investing activities

     (121,364     (56,051
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase (decrease) in short-term borrowings, net

     4,044        (13,615

Proceeds from issuance of long-term debt

     10,708        10,141   

Payments of long-term debt

     (15,707     (19,166

Dividends paid

     (23,654     (25,874

Purchase of common stock in treasury

     (69     (540

Reissuance of common stock in treasury

     2        3   

Other, net

     (2,144     (1,718
  

 

 

   

 

 

 

Net cash used in financing activities

     (26,820     (50,769
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (11,158     (2,428
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (39,655     (183

Cash and cash equivalents at beginning of year

     313,126        273,471   
  

 

 

   

 

 

 

Cash and cash equivalents at end of year

   ¥ 273,471      ¥ 273,288   
  

 

 

   

 

 

 

 

18


Table of Contents

<After Amendment>

 

     Years ended March 31,  
     2011     2012  
     (Yen in millions)  

Cash flows from operating activities:

    

Net income

   ¥ 130,118      ¥ 84,758   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     71,544        73,120   

Provision for doubtful accounts and loss on bad debts

     2,039        370   

Write-down of inventories

     5,291        11,486   

Deferred income taxes

     6,470        (4,064 ) 

Equity in losses of affiliates and unconsolidated subsidiaries

     160        36   

Foreign currency adjustments

     506        (759

Change in assets and liabilities:

    

Increase in receivables

     (38,043     (3,803 ) 

Increase in inventories

     (69,368     (39,762

(Increase) decrease in advance payment

     (20,008     3,507   

Increase in other current assets

     (616     (1,094

Increase (decrease) in notes and accounts payable

     29,422        (10,092

Increase (decrease) in accrued income taxes

     2,039        (6,680 ) 

Increase in other current liabilities

     3,033        4,411   

Decrease in other non-current liabilities

     (2,871     (5,287

Other, net

     (29     2,918   
  

 

 

   

 

 

 

Net cash provided by operating activities

     119,687        109,065   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Payments for purchases of available-for-sale securities

     (11,837     (18,970

Payments for purchases of held-to-maturity securities

     (67,174     (74,369

Payments for purchases of other securities

     (5,173     (149

Proceeds from sales and maturities of available-for-sale securities

     9,568        29,346   

Proceeds from maturities of held-to-maturity securities

     42,534        74,083   

Acquisitions of businesses, net of cash acquired

     (1,581     (35,454

Payments for purchases of property, plant and equipment

     (65,844     (67,765

Payments for purchases of intangible assets

     (6,568     (6,744

Proceeds from sales of property, plant and equipment, and intangible assets

     491        939   

Acquisition of time deposits and certificate of deposits

     (303,482     (258,032

Withdrawal of time deposits and certificate of deposits

     287,376        299,531   

Other, net

     326        1,533   
  

 

 

   

 

 

 

Net cash used in investing activities

     (121,364     (56,051
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase (decrease) in short-term borrowings, net

     4,044        (13,615

Proceeds from issuance of long-term debt

     10,708        10,141   

Payments of long-term debt

     (15,707     (19,166

Dividends paid

     (23,654     (25,874

Purchase of common stock in treasury

     (69     (540

Reissuance of common stock in treasury

     2        3   

Other, net

     (2,144     (1,718
  

 

 

   

 

 

 

Net cash used in financing activities

     (26,820     (50,769
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (11,158     (2,428
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (39,655     (183

Cash and cash equivalents at beginning of year

     313,126        273,471   
  

 

 

   

 

 

 

Cash and cash equivalents at end of year

   ¥ 273,471      ¥ 273,288   
  

 

 

   

 

 

 

 

19


Table of Contents

7) 3. CONSOLIDATED FINANCIAL STATEMENTS

(6) Segment Information (page 19 of the Report)

i) Reporting segment:

<Before Amendment>

 

     March 31,     Increase (Decrease)  
     2011     2012    
     Amount     Amount     Amount         %      
     (Yen in millions)  

Assets by reporting segments:

        

Fine Ceramic Parts Group

   ¥ 57,682      ¥ 68,637      ¥ 10,955        19.0   

Semiconductor Parts Group

     111,406        112,121        715        0.6   

Applied Ceramic Products Group

     258,618        265,093        6,475        2.5   

Electronic Device Group

     351,432        412,897        61,465        17.5   

Telecommunications Equipment Group

     111,634        109,975        (1,659     (1.5

Information Equipment Group

     247,486        246,834        (652     (0.3

Others

     132,381        138,304        5,923        4.5   
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,270,639        1,353,861        83,222        6.5   

Corporate

     748,184        727,849        (20,335     (2.7

Investments in and advances to affiliates and unconsolidated subsidiaries

     1,419        1,797        378        26.6   

Adjustments and eliminations

     (73,676     (93,612     (19,936       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   ¥ 1,946,566      ¥ 1,989,895      ¥ 43,329        2.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

20


Table of Contents

<After Amendment>

 

     March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     Amount     Amount         %      
     (Yen in millions)  

Assets by reporting segments:

        

Fine Ceramic Parts Group

   ¥ 57,682      ¥ 68,637      ¥ 10,955        19.0   

Semiconductor Parts Group

     111,406        112,121        715        0.6   

Applied Ceramic Products Group

     258,618        265,093        6,475        2.5   

Electronic Device Group

     351,432        417,105        65,673        18.7   

Telecommunications Equipment Group

     111,634        109,975        (1,659     (1.5

Information Equipment Group

     247,486        246,834        (652     (0.3

Others

     132,381        138,304        5,923        4.5   
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,270,639        1,358,069        87,430        6.9   

Corporate

     748,184        727,849        (20,335     (2.7

Investments in and advances to affiliates and unconsolidated subsidiaries

     1,419        1,797        378        26.6   

Adjustments and eliminations

     (73,676     (93,612     (19,936       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   ¥ 1,946,566      ¥ 1,994,103      ¥ 47,537        2.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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(page 21 of the Report)

ii) Geographic segments (Net sales and Income before income taxes by geographic area):

<Before Amendment>

 

     Years ended March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     Amount     Amount     %  
     (Yen in millions)  

Net sales:

        

Japan

   ¥ 573,646      ¥ 576,757      ¥ 3,111        0.5   

Intra-group sales and transfer between geographic areas

     451,620        380,978        (70,642     (15.6
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,025,266        957,735        (67,531     (6.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Asia

     184,140        176,636        (7,504     (4.1

Intra-group sales and transfer between geographic areas

     181,027        171,386        (9,641     (5.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     365,167        348,022        (17,145     (4.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Europe

     221,343        214,259        (7,084     (3.2

Intra-group sales and transfer between geographic areas

     33,394        30,134        (3,260     (9.8
  

 

 

   

 

 

   

 

 

   

 

 

 
     254,737        244,393        (10,344     (4.1
  

 

 

   

 

 

   

 

 

   

 

 

 

United States of America

     264,200        199,256        (64,944     (24.6

Intra-group sales and transfer between geographic areas

     28,652        20,550        (8,102     (28.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     292,852        219,806        (73,046     (24.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Others

     23,595        23,962        367        1.6   

Intra-group sales and transfer between geographic areas

     13,469        11,240        (2,229     (16.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     37,064        35,202        (1,862     (5.0

Adjustments and eliminations

     (708,162     (614,288     93,874          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,266,924      ¥ 1,190,870      ¥ (76,054     (6.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes:

        

Japan

   ¥ 97,407      ¥ 62,407      ¥ (35,000     (35.9

Asia

     18,657        17,824        (833     (4.5

Europe

     16,464        11,572        (4,892     (29.7

United States of America

     19,966        15,632        (4,334 )      (21.7 ) 

Others

     4,870        1,048        (3,822     (78.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     157,364        108,483        (48,881 )      (31.1 ) 

Corporate

     16,882        13,876        (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160     (36     124          

Adjustments and eliminations

     (1,754     470        2,224          
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332      ¥ 122,793      ¥ (49,539 )      (28.7 ) 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents

<After Amendment>

 

     Years ended March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     Amount     Amount     %  
     (Yen in millions)  

Net sales:

        

Japan

   ¥ 573,646      ¥ 576,757      ¥ 3,111        0.5   

Intra-group sales and transfer between geographic areas

     451,620        380,978        (70,642     (15.6
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,025,266        957,735        (67,531     (6.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Asia

     184,140        176,636        (7,504     (4.1

Intra-group sales and transfer between geographic areas

     181,027        171,386        (9,641     (5.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     365,167        348,022        (17,145     (4.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Europe

     221,343        214,259        (7,084     (3.2

Intra-group sales and transfer between geographic areas

     33,394        30,134        (3,260     (9.8
  

 

 

   

 

 

   

 

 

   

 

 

 
     254,737        244,393        (10,344     (4.1
  

 

 

   

 

 

   

 

 

   

 

 

 

United States of America

     264,200        199,256        (64,944     (24.6

Intra-group sales and transfer between geographic areas

     28,652        20,550        (8,102     (28.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     292,852        219,806        (73,046     (24.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Others

     23,595        23,962        367        1.6   

Intra-group sales and transfer between geographic areas

     13,469        11,240        (2,229     (16.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     37,064        35,202        (1,862     (5.0

Adjustments and eliminations

     (708,162     (614,288     93,874          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,266,924      ¥ 1,190,870      ¥ (76,054     (6.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes:

        

Japan

   ¥ 97,407      ¥ 62,407      ¥  (35,000)        (35.9

Asia

     18,657        17,824        (833     (4.5

Europe

     16,464        11,572        (4,892     (29.7

United States of America

     19,966        7,732        (12,234 )      (61.3 ) 

Others

     4,870        1,048        (3,822     (78.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     157,364        100,583        (56,781 )      (36.1 ) 

Corporate

     16,882        13,876        (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160     (36     124          

Adjustments and eliminations

     (1,754     470        2,224          
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332      ¥ 114,893      ¥ (57,439 )      (33.3 ) 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

23


Table of Contents

8) 3. CONSOLIDATED FINANCIAL STATEMENTS

(8) Material Subsequent Event and (10) Other Note (page 22 of the Report)

<Before Amendment>

(8) Material Subsequent Event

The Environmental Protection Agency Issues Administrative Order to AVX Corporation for Cleanup of New Bedford Harbor

On April 20, 2012, AVX Corporation (AVX), a consolidated subsidiary of Kyocera in the United States, made an announcement that AVX received a notice that the Environmental Protection Agency (EPA) has issued an enforcement order to AVX to implement ongoing remedial work at the New Bedford Harbor Superfund Site in New Bedford, Massachusetts (the Harbor), including dredging PCB-contaminated sediment from the Harbor on April 18, 2012.

Historical course and current situation of this issue are as follows.

In 1992, the United States (on behalf of the EPA and the National Oceanic and Atmospheric Administration) and the Commonwealth of Massachusetts entered into a Consent Decree with AVX for payment of past and future response costs and natural resource damages, subject to certain reopener provisions. AVX paid $66 million, plus interest, in connection with the Consent Decree.

Following the EPA’s 1998 issuance of the “Record of Decision” for the remediation of the Upper and Lower Harbor areas of the Superfund site, the EPA has been performing the remedial design and remedial action work using settlement funds received from AVX and other settling defendants. The EPA estimates that the net present value of additional costs required to complete the Upper and Lower Harbor cleanup may be as much as $401 million.

AVX has been engaged in discussions with the EPA and the Commonwealth of Massachusetts concerning AVX’s potential remaining liabilities at the Harbor. The EPA’s enforcement order includes a delayed effective date of sixty days to provide AVX an opportunity to continue discussions with the governments concerning the extent to which AVX would pay for and/or perform the cleanup of the Harbor.

AVX is currently evaluating the EPA’s enforcement order and determining its response and course of action which may include recording a charge related to this matter in its result of operation and financial condition for fiscal 2012. Any such charge is not reflected in AVX’s consolidated financial results for fiscal 2012, which AVX released April 25, 2012. Accordingly, a charge related to this matter is not reflected in Kyocera’s consolidated financial results for fiscal 2012 in this Form 6-K.

Kyocera plans to make an announcement immediately if any progress in this matter occurs.

 

24


Table of Contents

<After Amendment>

(8) Material Subsequent Event

None.

(10) Other Note

AVX Corporation (AVX), a consolidated subsidiary of Kyocera in the United States has been identified by the United States Environmental Protection Agency (EPA), state governmental agencies or other private parties as a potentially responsible party (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) or equivalent state or local laws for clean-up and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA has generally been construed to authorize joint and several liability, the EPA could seek to recover all clean-up costs from any one of the PRPs at a site despite the involvement of other PRPs. At certain sites, financially responsible PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. AVX believes that liability resulting from these sites will be apportioned between AVX and other PRPs.

To resolve its liability at the sites at which AVX has been named a PRP, AVX has entered into various administrative orders and consent decrees with federal and state regulatory agencies governing the timing and nature of investigation and remediation. As is customary, the orders and decrees regarding sites where the PRPs are not themselves implementing the chosen remedy contain provisions allowing the EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions.

In 1991, in connection with a consent decree, AVX paid ¥8,878 million ($66 million), plus interest, toward the environmental conditions at, and remediation of, New Bedford Harbor in the Commonwealth of Massachusetts (the harbor) in settlement with the United States and the Commonwealth of Massachusetts, subject to reopener provisions, including a reopener if certain remediation costs for the site exceed ¥10,701 million ($130.5 million). In 2007, AVX received notification from the EPA and the Department of Justice indicating that the United States was preparing to exercise the cost reopener. In March 2011, the EPA issued the Fourth Explanation of Significant Differences (ESD #4) that explains the planned changes to the existing remedial action plan for the harbor to include the use of a confined aquatic disposal (CAD) cell, along with interim off-site transportation and disposal of certain contaminated dredge spoils, and the continued use of long-term on-site storage for other contaminated dredge spoils. ESD #4 provides future cost estimates under the new remedial action plan (in addition to costs incurred to date) ranging from ¥29,684 million ($362 million) to ¥32,882 million ($401 million), net present value, based on certain criteria included in the ESD #4. The EPA has indicated that remediation costs through December 31, 2011 were approximately ¥37,392 million (approximately $456 million), not all of which are subject to the reopener provisions.

On April 18, 2012, the EPA issued to AVX a Unilateral Administrative Order (UAO) directing AVX to perform the Remedial Design, the Remedial Action and Operation and Maintenance for the harbor clean-up. The effective date set forth in the UAO is June 18, 2012, pursuant to which AVX has until June 25, 2012 to inform the EPA if it intends to comply with the UAO.

AVX has not received complete documentation of past response costs from the EPA and therefore has not yet completed an investigation of the monies spent or available defenses in light of these notifications and indications. AVX has also not yet determined whether AVX can avoid responsibility for all, or some portion, of these past or future costs because the remediation method has changed over time and costs can be appropriately apportioned to parties other than AVX. AVX anticipates further discussions with the U.S. Department of Justice, the EPA, and the Commonwealth of Massachusetts in the first half of the year ending March 31, 2013.

AVX is continuing to assess the UAO as well as potential defenses and other actions with respect to the site. However, in light of the foregoing, AVX considers it to be probable and reasonably estimable that AVX will incur cost within a range of approximately ¥7,900 million (approximately $100 million) to ¥59,860 million ($730 million) , with no amount within that range representing a more likely outcome until such time as AVX completes an investigation with regard to monies spent, available defenses and other matters. AVX recognizes liabilities for environmental exposures when analysis indicates that is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. When a range of loss can be estimated, AVX accrues the most likely amount. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. Accordingly, AVX has recorded a charge for the year ended March 31, 2012 of ¥7,900 million ($100 million) with respect to this matter.

 

25


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LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Year Ended March 31, 2012

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 Year Ended March 31, 2012 (Fiscal 2012)

 

(1) Consolidated results of operations

          (% of change from previous year)   
      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              %      

Fiscal 2012

     1,190,870         (6.0     97,675         (37.4     114,893         (33.3     79,357         (35.2

Fiscal 2011

     1,266,924         18.0        155,924         144.2        172,332         183.5        122,448         205.4   

(Note) Comprehensive income:

77,850 million yen in the year ended March 31, 2012, (22.5)% of change from previous year

100,502 million yen in the year ended March 31, 2011, 113.2% 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
     Ratio of net income
attributable to
shareholders of
Kyocera Corporation
to shareholders' equity
     Ratio of income
before income taxes
to total assets
     Ratio of profit
from operations
to net sales
 
     Yen      Yen      %      %      %  

Fiscal 2012

     432.58         432.58         5.5         5.8         8.2   

Fiscal 2011

     667.23         667.23         8.9         9.1         12.3   

(Reference) Equity in losses of affiliates and unconsolidated subsidiaries:

(36) million yen in the year ended March 31, 2012

   (160) million yen in the year ended March 31, 2011

(2) Consolidated financial condition

 

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

March 31, 2012

     1,994,103         1,534,241         1,469,505         73.7         8,010.65   

March 31, 2011

     1,946,566         1,483,359         1,420,263         73.0         7,739.31   

(3) Consolidated cash flows

 

     Operating activities      Investing activities     Financing activities     Cash and cash equivalents
at end of year
 
     Million yen      Million yen     Million yen     Million yen  

Fiscal 2012

     109,065         (56,051     (50,769     273,288   

Fiscal 2011

     119,687         (121,364     (26,820     273,471   

2. Dividends

 

    Dividends per share     Annual aggregate     Dividends to
net income
attributable to
    Dividends to  
    End of
first quarter
    End of
second quarter
    End of
third quarter
    Year-end     Annual     amount of
dividends
    shareholders of
Kyocera Corporation
    Kyocera  Corporation
shareholders' equity
 
    Yen     Yen     Yen     Yen     Yen     Million yen     %     %  

Fiscal 2011

           60.00               70.00        130.00        23,857        19.5        1.7   

Fiscal 2012

           60.00               60.00        120.00        22,013        27.7        1.5   

Fiscal 2013 (forecast)

                                120.00               22.9          

(Note) Dividends per share for the year ending March 31, 2013 are forecasted to be 120.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013 (Fiscal 2013)

(% of change from the 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  

Fiscal 2013

     1,370,000         15.0         140,000         43.3         151,200         31.6         96,000         21.0         523.30   

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

 

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Table of Contents

(Notes)

(1) Increase or decrease in significant subsidiaries during the year ended March 31, 2012: None.

(2) Changes in accounting policies:

(i) Changes due to adoption of new accounting standards: Please refer to the accompanying “(5) Basis of Preparation of Consolidated Financial Statements” on page 18.

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

(3) Number of shares (common stock):

(i) Number of shares issued:

 

191,309,290 shares at March 31, 2012

   191,309,290 shares at March 31, 2011

(ii) Number of treasury stock:

 

7,865,370 shares at March 31, 2012

   7,796,321 shares at March 31, 2011

(iii) Average number of shares outstanding:

 

183,450,800 shares in the year ended March 31, 2012

   183,517,144 shares in the year ended March 31, 2011

(Reference) Outline of Non-Consolidated Results for Kyocera Corporation

The non-consolidated financial information is prepared in accordance with accounting principles generally accepted in Japan.

1. Non-consolidated Financial Results for the Year Ended March 31, 2012:

 

(1) Non-consolidated results of operations

          (% of change from previous year)   
     Net sales     Profit from operations     Recurring profit     Net income  
     Million yen      %     Million yen      %     Million yen      %     Million yen      %  

Fiscal 2012

     570,310         (13.4     17,699         (61.5     67,243         (26.3     49,828         (30.7

Fiscal 2011

     658,297         39.0        45,992                91,285         177.8        71,934         870.1   

 

     Net income per share -Basic      Net income per share -Diluted  
     Yen      Yen  

Fiscal 2012

     271.62           

Fiscal 2011

     391.97           

(2) Non-consolidated financial condition

 

     Total assets      Net assets      Net assets to total assets      Net assets per share  
     Million yen      Million yen      %      Yen  

March 31, 2012

     1,458,971         1,219,897         83.6         6,649.97   

March 31, 2011

     1,441,403         1,173,990         81.4         6,397.31   

Presentation of Situation of Audit Procedure

The consolidated financial information included in this Form 6-K is out of scope of audit procedure under the Financial Instruments and Exchange Law of Japan. Audit procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of submission of this Form 6-K.

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 9.

 

2


Table of Contents

Accompanying Information

1. BUSINESS RESULTS

(1) Analysis of Business Results

[Business Results for the Year Ended March 31, 2012]

Economic Situation and Business Environment

In the year ended March 31, 2012 (“fiscal 2012”), the Japanese economy stagnated overall, due to continued appreciation of the yen against the Euro and the U.S. dollar and a decrease in exports, despite resolution of disruptions in production activities and the supply chain following the Great East Japan Earthquake. The European economy showed a downturn, due to a reduced willingness to engage in personal consumption and investment as the financial crisis worsened. In contrast, the U.S. economy continued to recover moderately, due mainly to growth in personal consumption and private capital investment. The Chinese economy continued to expand, primarily supported by strong domestic demand in spite of signs of a slowdown in export growth.

In the information and communications market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”), demand for items such as mobile phone handsets, personal computers and flat-screen TVs was sluggish compared with projections from the beginning of fiscal 2012. In addition, component inventory adjustments at equipment manufacturers persisted due to stagnation in production activities for products including digital cameras resulting from the prolonged impact of floods in Thailand. As a result, component demand, mainly for digital consumer equipment, fell below the level recorded in the year ended March 31, 2011 (“fiscal 2011”).

Consolidated Financial Results

Average exchange rates for fiscal 2012 were ¥79 to the U.S. dollar, marking appreciation of ¥7 (approximately 8%) from ¥86 for fiscal 2011, and ¥109 to the Euro, marking appreciation of ¥4 (approximately 4%) from ¥113 for fiscal 2011. As a result, net sales and income before income taxes for fiscal 2012 were adversely affected by approximately ¥40 billion and ¥10 billion, respectively, compared with fiscal 2011.

Consolidated net sales for fiscal 2012 decreased by ¥76,054 million, or 6.0%, to ¥1,190,870 million, compared with ¥1,266,924 million for fiscal 2011, due primarily to a decline in component demand for digital consumer equipment and a decrease in sales in the Telecommunications Equipment Group in addition to the impact of the yen’s appreciation. Profit from operations decreased by ¥58,249 million, or 37.4%, to ¥97,675 million, compared with ¥155,924 million for fiscal 2011. In addition, income before income taxes decreased by ¥57,439 million, or 33.3%, to ¥114,893 million, compared with ¥172,332 million for fiscal 2011. Net income attributable to shareholders of Kyocera Corporation for fiscal 2012 decreased by ¥43,091 million, or 35.2%, to ¥79,357 million, compared with ¥122,448 million for fiscal 2011.

 

     Years ended March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount      %      Amount      %      Amount     %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,266,924         100.0       ¥ 1,190,870         100.0       ¥ (76,054     (6.0

Profit from operations

     155,924         12.3         97,675         8.2         (58,249     (37.4

Income before income taxes

     172,332         13.6         114,893         9.6         (57,439     (33.3

Net income attributable to shareholders of Kyocera Corporation

     122,448         9.7         79,357         6.7         (43,091     (35.2

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     667.23                 432.58                          

Average US$ exchange rate

     86                 79                          

Average Euro exchange rate

     113                 109                          

 

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Table of Contents

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Both sales and operating profit in this reporting segment increased compared with fiscal 2011 due to an increase in demand for components, mainly for the automotive and LED-related markets.

2) Semiconductor Parts Group

The impact of customer inventory adjustments for components used in digital consumer equipment led to sluggish demand for packages for electronic components and image sensors. As a result, sales and operating profit in this reporting segment decreased compared with fiscal 2011.

3) Applied Ceramic Products Group

In the cutting tool business, demand grew, particularly in the automotive market. The solar energy business stagnated, however, due to a steep decline in product prices worldwide caused by deterioration in the balance of supply and demand as growth in the European market slowed. As a result, sales and operating profit in this reporting segment decreased compared with fiscal 2011.

4) Electronic Device Group

Sales and operating profit in this reporting segment decreased compared with fiscal 2011 due to sluggish component demand affected by the Great East Japan Earthquake and the floods in Thailand, as well as an impact of the yen’s appreciation. In addition, AVX Corporation, a consolidated subsidiary, recorded an environmental remediation charge in fiscal 2012.

5) Telecommunications Equipment Group

Despite aggressive introduction of new products, which included the commencement of smartphone sales for the Japanese market, sales in this reporting segment decreased compared with fiscal 2011, due to sluggish growth in sales of mobile phone handsets overseas. Operating profit slightly declined compared with fiscal 2011, despite of efforts to reduce manufacturing costs and to undertake structural reforms in overseas operations.

6) Information Equipment Group

Sales in this reporting segment increased slightly compared with fiscal 2011, due to increased sales volume resulting from the aggressive launch of new products and expansion of sales network, mostly offset by the impact of the yen’s appreciation. Operating profit increased, however, compared with fiscal 2011, due to an increase in sales of high-value-added products such as color-capable machines and consumables.

7) Others

Sales in this reporting segment increased compared with fiscal 2011 due to sales contributions from new products such as LED lighting and growth in sales at Kyocera Communication Systems Co., Ltd. Operating profit decreased compared with fiscal 2011, however, due mainly to an increase in R&D expenses for new businesses.

 

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Net Sales by Reporting Segment

 

     Years ended March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 76,269        6.0      ¥ 80,372        6.7      ¥ 4,103        5.4   

Semiconductor Parts Group

     174,687        13.8        153,420        12.9        (21,267     (12.2

Applied Ceramic Products Group

     197,642        15.6        179,784        15.1        (17,858     (9.0

Electronic Device Group

     242,641        19.2        228,721        19.2        (13,920     (5.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     691,239        54.6        642,297        53.9        (48,942     (7.1

Telecommunications Equipment Group

     225,168        17.8        178,669        15.0        (46,499     (20.7

Information Equipment Group

     239,916        18.9        243,457        20.4        3,541        1.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     465,084        36.7        422,126        35.4        (42,958     (9.2

Others

     139,383        11.0        151,987        12.8        12,604        9.0   

Adjustments and eliminations

     (28,782     (2.3     (25,540     (2.1     3,242          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,266,924        100.0      ¥ 1,190,870        100.0      ¥ (76,054     (6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

    

Operating Profit by Reporting Segment

 

 
     Years ended March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     %*     Amount     %*     Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 11,969        15.7      ¥ 12,622        15.7      ¥ 653        5.5   

Semiconductor Parts Group

     37,331        21.4        27,754        18.1        (9,577     (25.7

Applied Ceramic Products Group

     29,049        14.7        6,459        3.6        (22,590     (77.8

Electronic Device Group

     41,646        17.2        16,036        7.0        (25,610     (61.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     119,995        17.4        62,871        9.8        (57,124     (47.6

Telecommunications Equipment Group

     2,121        0.9        1,469        0.8        (652     (30.7

Information Equipment Group

     25,845        10.8        29,451        12.1        3,606        14.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     27,966        6.0        30,920        7.3        2,954        10.6   

Others

     9,651        6.9        8,054        5.3        (1,597     (16.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     157,612        12.4        101,845        8.6        (55,767     (35.4

Corporate

     16,882               13,876               (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160            (36            124          

Adjustments and eliminations

     (2,002            (792            1,210          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332        13.6      ¥ 114,893        9.6      ¥ (57,439     (33.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

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Table of Contents

Net Sales by Geographic Area

i) Japan

Despite an increase in sales at Kyocera Communication Systems Co., Ltd., sales in the solar energy business decreased resulting from deteriorated product prices, as well as sluggish demand for components used in digital consumer equipment. As a result, sales for Japan were flat compared with fiscal 2011.

ii) Asia

Sales in the Electronic Device Group and the Semiconductor Parts Group decreased due to a decrease in demand for components used in digital consumer equipment, and to the yen’s appreciation. As a result, sales for Asia decreased compared with fiscal 2011.

iii) Europe

Sales for Europe decreased compared with fiscal 2011 due to a decrease in sales in the Applied Ceramic Products Group resulting primarily from slowed market growth in Europe and a steep decline in product prices in solar energy business.

iv) United Sates of America

Sales for the U.S. decreased compared with fiscal 2011 due to a decline in sales volume of mobile phone handsets in the Telecommunications Equipment Group and to the yen’s appreciation.

v) Others

Sales for Others decreased compared with fiscal 2011 due mainly to decreased sales in the Semiconductor Parts Group and the Electronic Device Group resulting from sluggish demand for components.

 

     Years ended March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount      %      Amount      %      Amount     %  
     (Yen in millions)  

Japan

   ¥ 559,883         44.2       ¥ 559,344         47.0       ¥ (539     (0.1

Asia

     215,913         17.0         205,469         17.2         (10,444     (4.8

Europe

     210,131         16.6         204,887         17.2         (5,244     (2.5

United States of America

     220,706         17.4         166,706         14.0         (54,000     (24.5

Others

     60,291         4.8         54,464         4.6         (5,827     (9.7
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net sales

   ¥ 1,266,924         100.0       ¥ 1,190,870         100.0       ¥ (76,054     (6.0
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Implemented Management Measures and Significant Management Decisions made in Fiscal 2012

i) In July 2011, with the aim of strengthening its cutting tool business, Kyocera acquired 100% of the outstanding common stock of Unimerco Group A/S (now Kyocera Unimerco A/S (“KUA”)), a Danish industrial cutting tool manufacturing and sales company, and made it a consolidated subsidiary. By making KUA a consolidated subsidiary, Kyocera has added to its lineup KUA’s high-quality, high-precision, custom-made solid-type cutting tools for automobile engine processing, as well as for the aviation and wind-power generation markets, while also expanding its sales network, mainly in Europe. Going forward, Kyocera will strive to further expand its cutting tool business through the pursuit of synergies with KUA.

ii) In February 2012, in order to expand its liquid crystal displays (LCDs) business, Kyocera acquired all shares of Optrex Corporation (now Kyocera Display Corporation), a specialized manufacturer of LCDs and related products, and made it a consolidated subsidiary. Going forward, Kyocera will take advantage of its strong customer base in LCDs for automotive applications both inside and outside Japan, with the aim of expanding business in the automotive market.

 

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[Consolidated Forecasts for the Year Ending March 31, 2013]

In the year ending March 31, 2013 (“fiscal 2013”), despite future uncertainty, particularly with regard to the European economy and exchange rate trends, the Japanese economy is forecast to move toward recovery, due to anticipated demand arising from restoration projects following the Great East Japan Earthquake. In addition, the U.S. economy is expected to recover moderately, while the Chinese economy is expected to show continued strong growth.

In the information and communications market, Kyocera expects recovery in production activities for digital consumer equipment as the impact from the floods in Thailand dissipates. Kyocera also anticipates an increase in component demand, primarily for smartphones. In the environment and energy market, the business environment is expected to show general improvement compared with fiscal 2012, primarily due to projected market growth resulting from expansion of governmental subsidy policies, including the enforcement of the Renewable Energy Law in Japan. Kyocera aims to enhance its financial performance by expanding businesses mainly in these high-growth-potential markets through active introduction of new products and by reducing costs, boosting productivity and pursuing Group synergies.

Specific financial forecasts for fiscal 2013 are as follows.

 

     Results for
the year ended
March 31, 2012
     Forecasts for
the year ending
March 31, 2013
     Increase
(Decrease)
 
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except per share amounts and exchange rates)  

Net sales

   ¥ 1,190,870         100.0       ¥ 1,370,000         100.0       ¥ 179,130         15.0   

Profit from operations

     97,675         8.2         140,000         10.2         42,325         43.3   

Income before income taxes

     114,893         9.6         151,200         11.0         36,307         31.6   

Net income attributable to shareholders of Kyocera Corporation

     79,357         6.7         96,000         7.0         16,643         21.0   

Diluted earnings per share attributable to shareholders of Kyocera Corporation

     432.58                 523.30                           

Average US$ exchange rate

     79                 80                           

Average Euro exchange rate

     109                 105                           

Note:

Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

 

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Net sales and operating profit forecasts by reporting segment are as follows.

Net Sales by Reporting Segment

 

     Results for
the year ended
March 31, 2012
    Forecasts for
the year ending
March 31, 2013
    Increase
(Decrease)
 
     Amount     %         Amount             %         Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 80,372        6.7      ¥ 90,000        6.6      ¥ 9,628        12.0   

Semiconductor Parts Group

     153,420        12.9        180,000        13.1        26,580        17.3   

Applied Ceramic Products Group

     179,784        15.1        220,000        16.1        40,216        22.4   

Electronic Device Group

     228,721        19.2        310,000        22.6        81,279        35.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     642,297        53.9        800,000        58.4        157,703        24.6   

Telecommunications Equipment Group

     178,669        15.0        180,000        13.1        1,331        0.7   

Information Equipment Group

     243,457        20.4        259,000        18.9        15,543        6.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     422,126        35.4        439,000        32.0        16,874        4.0   

Others

     151,987        12.8        160,000        11.7        8,013        5.3   

Adjustments and eliminations

     (25,540     (2.1     (29,000     (2.1     (3,460       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,190,870        100.0      ¥ 1,370,000        100.0      ¥ 179,130        15.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating Profit by Reporting Segment             
     Results for
the year ended
March 31, 2012
    Forecasts for
the year ending
March 31, 2013
    Increase
(Decrease)
 
     Amount     %*         Amount             %*         Amount     %  
     (Yen in millions)  

Fine Ceramic Parts Group

   ¥ 12,622        15.7      ¥ 14,100        15.7      ¥ 1,478        11.7   

Semiconductor Parts Group

     27,754        18.1        32,600        18.1        4,846        17.5   

Applied Ceramic Products Group

     6,459        3.6        17,000        7.7        10,541        163.2   

Electronic Device Group

     16,036        7.0        27,000        8.7        10,964        68.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     62,871        9.8        90,700        11.3        27,829        44.3   

Telecommunications Equipment Group

     1,469        0.8        9,000        5.0        7,531        512.7   

Information Equipment Group

     29,451        12.1        29,500        11.4        49        0.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment Business

     30,920        7.3        38,500        8.8        7,580        24.5   

Others

     8,054        5.3        10,000        6.3        1,946        24.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     101,845        8.6        139,200        10.2        37,355        36.7   

Corporate and others

     13,048               12,000               (1,048     (8.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 114,893        9.6      ¥ 151,200        11.0      ¥ 36,307        31.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
* % to net sales of each corresponding segment

 

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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 lists:

 

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

 

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

 

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

 

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

 

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

 

(12) 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;

 

(13) Newly enacted laws and regulations or stricter interpretation of existing laws and regulations that may limit our business operations;

 

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

 

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

 

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

 

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

 

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

 

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

 

(20) 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.

 

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Table of Contents

(2) Analysis of Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at March 31, 2012 decreased by ¥183 million to ¥273,288 million from ¥273,471 million at March 31, 2011.

i) Cash flows from operating activities

Net cash provided by operating activities for fiscal 2012 decreased by ¥10,622 million to ¥109,065 million from ¥119,687 million for fiscal 2011. This was due mainly to a decrease in net income.

ii) Cash flows from investing activities

Net cash used in investing activities for fiscal 2012 decreased by ¥65,313 million to ¥56,051 million from ¥121,364 million for fiscal 2011. This was due mainly to that increases in proceeds from sales and maturities of available-for-sales and held-to-maturity securities and a decrease in acquisition of time deposits and certificate of deposits exceeded an increase in acquisitions of businesses.

iii) Cash flows from financing activities

Net cash used in financing activities for fiscal 2012 increased by ¥23,949 million to ¥50,769 million from ¥26,820 million for fiscal 2011. This was due mainly to increases in payments of short-term borrowings and long-term debts.

Consolidated Cash Flows

 

     Years ended March 31,  
     2011     2012  
     (Yen in millions)  

Cash flows from operating activities

   ¥ 119,687      ¥ 109,065   

Cash flows from investing activities

     (121,364     (56,051

Cash flows from financing activities

     (26,820     (50,769

Effect of exchange rate changes on cash and cash equivalents

     (11,158     (2,428

Net decrease in cash and cash equivalents

     (39,655     (183

Cash and cash equivalents at beginning of year

     313,126        273,471   

Cash and cash equivalents at end of year

   ¥ 273,471      ¥ 273,288   

 

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Table of Contents

(3)  Basic Profit Distribution Policy and Dividends for the Year Ended March 31, 2012 and for the Year Ending March 31, 2013

i) Basic profit distribution policy

Kyocera believes that the best way to increase corporate value and meet shareholders’ expectations is to improve future consolidated performance on an ongoing basis. Kyocera therefore has adopted a principal guideline that dividend amounts within a range based on net income attributable to shareholders of Kyocera Corporation on a consolidated basis, and has set its consolidated dividend policy to maintain a consolidated dividend ratio at a level of approximately 20% to 25% of consolidated net income attributable to shareholders of Kyocera Corporation. In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors including the amount of capital expenditures necessary for medium to long-term corporate growth.

Kyocera also has adopted policies to ensure a sound financial basis, and, for such purpose, it sets aside other general reserves in preparation for the creation of new businesses, cultivation of new markets, development of new technologies and acquisition of outside management resources necessary to achieve sustainable corporate growth.

ii) Dividends for the year ended March 31, 2012

Based on performance during the year ended March 31, 2012 and pursuant to the aforementioned policies, Kyocera will distribute a year-end dividend for the year ended March 31, 2012 of 60 yen per share, a 10 yen decrease as compared with the year ended March 31, 2011. When aggregated with the interim dividend in the amount of 60 yen per share, the total annual dividend will be 120 yen per share.

iii) Dividend forecast for the year ending March 31, 2013

Dividend amounts for the year ending March 31, 2013 will be decided pursuant to “i) Basic profit distribution policy” set forth above. At present, Kyocera forecasts a total annual dividend in the amount of 120 yen per share, based on its financial forecast for the year ending March 31, 2013.

 

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Table of Contents

2. MANAGEMENT POLICIES

(1) Basic Policy

Kyocera aims to be respected by society as “The Company” from the perspective of corporate ethics, while maintaining continuous sales growth and high profitability. It pursues this objective through implementation of the “Kyocera Philosophy,” a corporate philosophy placing people’s hearts at its core, and of the “Amoeba Management System”, a management system unique to Kyocera which has been a driving force for growth since the company’s earliest days.

Kyocera’s management policy is to be a high-growth, highly profitable company. To realize this policy, Kyocera aims to increase corporate value by further enhancing performance through strengthening existing businesses, pursuing synergies among businesses and creating new businesses.

(2) Management Target

To be a high-growth, highly profitable company, Kyocera aims to achieve continuous sales growth and a consolidated pre-tax income ratio of 15% or higher.

(3) Medium-term Management Strategy and Management Challenges

During fiscal 2012, Kyocera pushed ahead with initiatives to reduce manufacturing costs and enhance productivity amidst a tough management environment arising from deterioration in external conditions, including the impact of the Great East Japan Earthquake and floods in Thailand, financial problems in Europe and the yen’s appreciation. Kyocera also undertook measures to drive future growth in the Kyocera Group, such as strengthening existing businesses by acquiring external management resources.

Going forward, Kyocera expects the business environment to continue to be severe, due primarily to stagnant growth in the global economy, continued appreciation of the yen and intensifying price competition resulting from the rise of Asian manufacturers. Kyocera believes it is necessary to further enhance management foundations and expand sales in growth markets in order to overcome global competition and drive growth of the Kyocera Group in any business environment, regardless of its severity. Specifically, Kyocera will tackle the following challenges, aiming for acceleration of global business development to become a high-growth, highly profitable company.

i) Enhance management foundations

Kyocera will promote further cost reductions, streamline existing production sites and expand their capacity in order to overcome global competition. In addition, Kyocera will take other measures, which will include establishment of new production sites, such as those in Vietnam, and will also re-examine its materials procurement methods.

Other efforts aimed at further enhancement of the Group’s management foundations will include strengthening ties among business divisions and among Group companies, in order to accelerate the development of new technologies and products. Kyocera will also continuously seek opportunities to expand its businesses by acquiring external management resources.

ii) Expand sales in growth markets

Kyocera views the information and communications market and the environment and energy market as future growth markets and will strive to expand sales in these markets in particular.

In the information and communications market, Kyocera anticipates the worldwide proliferation of smartphones and expansion of higher speed networks going forward. Kyocera will work to increase sales in the Components Business by developing smaller, more advanced components and bolstering its sales system. Efforts will also be made to expand the Equipment Business by introducing differentiated telecommunications equipment taking advantage of Kyocera’s unique component technologies and by expanding sales networks for information equipment, mainly in emerging markets.

In the environment and energy market, amidst rising awareness of environmental preservation and energy conservation, Kyocera will work to expand sales by commencing the sale of high-value-added home energy management systems combining various new devices in order to develop new markets, while continuing to pursue sales of existing solar generating systems. Kyocera is also preparing for entry into large scale solar power generation projects.

 

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Table of Contents

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets

 

     March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount     %      Amount     %     
     (Yen in millions)  

Current assets:

            

Cash and cash equivalents

   ¥ 273,471         ¥ 273,288           ¥(183)   

Short-term investments in debt securities

     44,012           47,175           3,163  

Other short-term investments

     201,817           158,765           (43,052

Trade notes receivables

     19,536           19,349           (187

Trade accounts receivables

     208,404           225,578           17,174   

Less allowances for doubtful accounts and sales returns

     (4,795        (4,583        212   

Inventories

     232,899           270,336           37,437   

Advance payments

     72,207           68,685           (3,522

Deferred income taxes

     43,035           45,049           2,014   

Other current assets

     38,915           40,961           2,046   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total current assets

     1,129,501        58.0         1,144,603        57.4         15,102   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-current assets:

            

Investments and advances:

            

Investments in and advances to affiliates and unconsolidated subsidiaries

     1,219           1,597           378   

Long-term investments in debt and equity securities

     377,075           372,779           (4,296

Other long-term investments

     15,585           17,501           1,916   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total investments and advances

     393,879        20.3         391,877        19.6         (2,002
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Property, plant and equipment:

            

Land

     59,638           60,600           962   

Buildings

     288,992           301,911           12,919   

Machinery and equipment

     706,474           719,146           12,672   

Construction in progress

     7,227           17,035           9,808   

Less accumulated depreciation

     (814,577        (838,155        (23,578
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total property, plant and equipment

     247,754        12.7         260,537        13.1         12,783   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Goodwill

     64,701        3.3         89,039        4.5         24,338   

Intangible assets

     42,160        2.2         49,653        2.5         7,493   

Other assets

     68,571        3.5         58,394        2.9         (10,177
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total non-current assets

     817,065        42.0         849,500        42.6         32,435   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

   ¥ 1,946,566        100.0       ¥ 1,994,103        100.0       ¥ 47,537   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

13


Table of Contents
      March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     %     Amount     %    
     (Yen in millions)  

Current liabilities:

          

Short-term borrowings

   ¥ 7,852        ¥ 4,062        ¥ (3,790

Current portion of long-term debt

     10,687          10,610          (77

Trade notes and accounts payable

     101,265          102,699          1,434   

Other notes and accounts payable

     61,226          60,993          (233

Accrued payroll and bonus

     49,092          49,880          788   

Accrued income taxes

     18,069          13,496          (4,573

Other accrued liabilities

     24,337          29,940          5,603   

Other current liabilities

     28,087          29,368          1,281   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     300,615        15.4        301,048        15.1        433   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current liabilities:

          

Long-term debt

     24,538          21,197          (3,341

Accrued pension and severance liabilities

     28,924          32,441          3,517   

Deferred income taxes

     90,005          90,179          174   

Other non-current liabilities

     19,125          14,997          (4,128
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     162,592        8.4        158,814        8.0        (3,778
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     463,207        23.8        459,862        23.1        (3,345
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Kyocera Corporation shareholders’ equity:

          

Common stock

     115,703          115,703            

Additional paid-in capital

     162,336          162,617          281   

Retained earnings

     1,268,548          1,324,052          55,504   

Accumulated other comprehensive income

     (75,633       (81,639       (6,006

Treasury stock, at cost

     (50,691       (51,228       (537
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Kyocera Corporation shareholders’ equity

     1,420,263        73.0        1,469,505        73.7        49,242   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     63,096        3.2        64,736        3.2        1,640   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     1,483,359        76.2        1,534,241        76.9        50,882   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   ¥ 1,946,566        100.0      ¥ 1,994,103        100.0      ¥ 47,537   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Note: Accumulated other comprehensive income is as follows:           
      March 31,     Increase
(Decrease)
 
     2011     2012    
     (Yen in millions)  

Net unrealized gains on securities

   ¥          32,235      ¥          40,735      ¥ 8,500   

Net unrealized losses on derivative financial instruments

       (29 )         (70     (41

Pension adjustments

       (3,534 )         (12,290     (8,756

Foreign currency translation adjustments

       (104,305       (110,014     (5,709

Total

   ¥          (75,633   ¥          (81,639   ¥ (6,006

 

14


Table of Contents

(2) Consolidated Statements of Income

 

     Years ended March 31,     Increase
(Decrease)
 
    2011     2012    
    Amount     %     Amount     %     Amount     %  
    (Yen in millions and shares in thousands, except per share amounts)  

Net sales

  ¥ 1,266,924        100.0      ¥ 1,190,870        100.0      ¥ (76,054     (6.0

Cost of sales

    888,869        70.2        870,143        73.1        (18,726     (2.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    378,055        29.8        320,727        26.9        (57,328     (15.2

Selling, general and administrative expenses

    222,131        17.5        223,052        18.7        921        0.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

    155,924        12.3        97,675        8.2        (58,249     (37.4

Other income (expenses):

           

Interest and dividend income

    12,963        1.0        13,966        1.2        1,003        7.7   

Interest expense

    (2,259     (0.2     (2,042     (0.2     217          

Foreign currency transaction gains, net

    3,824        0.3        4,533        0.4        709        18.5   

Equity in losses of affiliates and unconsolidated subsidiaries

    (160     (0.0     (36     (0.0     124          

Other, net

    2,040        0.2        797        0.0        (1,243     (60.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

    16,408        1.3        17,218        1.4        810        4.9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    172,332        13.6        114,893        9.6        (57,439     (33.3

Income taxes

    42,214        3.3        30,135        2.5        (12,079     (28.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    130,118        10.3        84,758        7.1        (45,360     (34.9

Net income attributable to noncontrolling interests

    (7,670     (0.6     (5,401     (0.4     2,269          
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to shareholders of Kyocera Corporation

  ¥ 122,448        9.7      ¥ 79,357        6.7      ¥ (43,091     (35.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

           

Net income attributable to shareholders of Kyocera Corporation:

           

Basic

  ¥ 667.23        ¥ 432.58         

Diluted

  ¥ 667.23        ¥ 432.58         

Average number of shares of common stock outstanding:

           

Basic

    183,517          183,451         

Diluted

    183,517          183,451         

Note:

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 was computed based on the diluted average number of shares of stock outstanding during each period.

 

15


Table of Contents

(3) Consolidated Statements of Equity

 

    Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Accumulated
other
comprehensive
income
    Treasury
stock
    Kyocera
Corporation
shareholders’
equity
    Noncontrolling
interests
    Total
equity
 
    (Yen in millions and shares in thousands)  

Balance at March 31, 2010 (183,521)

  ¥ 115,703      ¥ 163,044      ¥ 1,168,122      ¥ (51,010   ¥ (50,624   ¥ 1,345,235      ¥ 62,027      ¥ 1,407,262   

Comprehensive income:

               

Net income

        122,448            122,448        7,670        130,118   

Other comprehensive income

          (24,572       (24,572     (5,044     (29,616
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              97,876        2,626        100,502   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (22,022         (22,022       (22,022

Cash dividends paid to noncontrolling interests

                (1,875     (1,875

Purchase of treasury stock (8)

            (69     (69       (69

Reissuance of treasury stock (0)

      0            2        2          2   

Stock option plan of subsidiaries

      151              151        60        211   

Other

      (859       (51       (910     258        (652
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2011 (183,513)

    115,703        162,336        1,268,548        (75,633     (50,691     1,420,263        63,096        1,483,359   

Comprehensive income:

               

Net income

        79,357            79,357        5,401        84,758   

Other comprehensive income

          (5,827       (5,827     (1,081     (6,908
           

 

 

   

 

 

   

 

 

 

Total comprehensive income

              73,530        4,320        77,850   
           

 

 

   

 

 

   

 

 

 

Cash dividends paid to Kyocera Corporation’s shareholders

        (23,853         (23,853       (23,853

Cash dividends paid to noncontrolling interests

                (2,124     (2,124

Purchase of treasury stock (69)

            (540     (540       (540

Reissuance of treasury stock (0)

      0            3        3          3   

Stock option plan of subsidiaries

      103              103        41        144   

Other

      178          (179       (1     (597     (598
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2012 (183,444)

  ¥ 115,703      ¥ 162,617      ¥ 1,324,052      ¥ (81,639   ¥ (51,228   ¥ 1,469,505      ¥ 64,736      ¥ 1,534,241   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

16


Table of Contents

(4) Consolidated Statements of Cash Flows

 

     Years ended March 31,  
     2011     2012  
     (Yen in millions)  

Cash flows from operating activities:

    

Net income

   ¥ 130,118      ¥ 84,758   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     71,544        73,120   

Provision for doubtful accounts and loss on bad debts

     2,039        370   

Write-down of inventories

     5,291        11,486   

Deferred income taxes

     6,470        (4,064

Equity in losses of affiliates and unconsolidated subsidiaries

     160        36   

Foreign currency adjustments

     506        (759

Change in assets and liabilities:

    

Increase in receivables

     (38,043     (3,803

Increase in inventories

     (69,368     (39,762

(Increase) decrease in advance payment

     (20,008     3,507   

Increase in other current assets

     (616     (1,094

Increase (decrease) in notes and accounts payable

     29,422        (10,092

Increase (decrease) in accrued income taxes

     2,039        (6,680

Increase in other current liabilities

     3,033        4,411   

Decrease in other non-current liabilities

     (2,871     (5,287

Other, net

     (29     2,918   
  

 

 

   

 

 

 

Net cash provided by operating activities

     119,687        109,065   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Payments for purchases of available-for-sale securities

     (11,837     (18,970

Payments for purchases of held-to-maturity securities

     (67,174     (74,369

Payments for purchases of other securities

     (5,173     (149

Proceeds from sales and maturities of available-for-sale securities

     9,568        29,346   

Proceeds from maturities of held-to-maturity securities

     42,534        74,083   

Acquisitions of businesses, net of cash acquired

     (1,581     (35,454

Payments for purchases of property, plant and equipment

     (65,844     (67,765

Payments for purchases of intangible assets

     (6,568     (6,744

Proceeds from sales of property, plant and equipment, and intangible assets

     491        939   

Acquisition of time deposits and certificate of deposits

     (303,482     (258,032

Withdrawal of time deposits and certificate of deposits

     287,376        299,531   

Other, net

     326        1,533   
  

 

 

   

 

 

 

Net cash used in investing activities

     (121,364     (56,051
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase (decrease) in short-term borrowings, net

     4,044        (13,615

Proceeds from issuance of long-term debt

     10,708        10,141   

Payments of long-term debt

     (15,707     (19,166

Dividends paid

     (23,654     (25,874

Purchase of common stock in treasury

     (69     (540

Reissuance of common stock in treasury

     2        3   

Other, net

     (2,144     (1,718
  

 

 

   

 

 

 

Net cash used in financing activities

     (26,820     (50,769
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (11,158     (2,428
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (39,655     (183

Cash and cash equivalents at beginning of year

     313,126        273,471   
  

 

 

   

 

 

 

Cash and cash equivalents at end of year

   ¥ 273,471      ¥ 273,288   
  

 

 

   

 

 

 

 

17


Table of Contents

(5) Basis of Preparation of Consolidated Financial Statements

i) Scope of consolidation

 

Number of consolidated subsidiaries

     223      Kyocera Document Solutions Inc.
      (former: Kyocera Mita Corporation)
      AVX Corporation
      Kyocera International, Inc. and others

Number of affiliates accounted for by the equity method

     11      

ii) Changes in scope of consolidation and application of the equity method:

 

Consolidated subsidiaries:

Number of increase

     35       Kyocera Display Corporation (former: Optrex Corporation)
      Kyocera Unimerco A/S and others

Number of decrease

     9      

Affiliates accounted for by the equity method:

Number of increase

     2      

Number of decrease

     1      

iii) Summary of significant accounting policies

Kyocera’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

Recently Adopted Accounting Standards

On April 1, 2011, Kyocera adopted the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2009-13, “Multiple-Deliverable Revenue Arrangements—a consensus of the FASB Emerging Issues Task Force” which addressed the accounting for multiple-deliverable arrangements to enable vender to account for products or services separately rather than as a combined unit. This accounting standard addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. 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, 2011, Kyocera adopted the FASB’s ASU No. 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” This accounting standard modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. 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 January 1, 2012, Kyocera adopted the FASB’s ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This accounting standard amends current U.S. GAAP to create more commonality with IFRSs by harmonizing definitions and disclosure requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

18


Table of Contents

(6) Segment Information

i) Reporting segment:

 

     March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     Amount     Amount     %  
     (Yen in millions)  

Assets by reporting segments:

        

Fine Ceramic Parts Group

   ¥ 57,682      ¥ 68,637      ¥ 10,955        19.0   

Semiconductor Parts Group

     111,406        112,121        715        0.6   

Applied Ceramic Products Group

     258,618        265,093        6,475        2.5   

Electronic Device Group

     351,432        417,105        65,673        18.7   

Telecommunications Equipment Group

     111,634        109,975        (1,659     (1.5

Information Equipment Group

     247,486        246,834        (652     (0.3

Others

     132,381        138,304        5,923        4.5   
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,270,639        1,358,069        87,430        6.9   

Corporate

     748,184        727,849        (20,335     (2.7

Investments in and advances to affiliates and unconsolidated subsidiaries

     1,419        1,797        378        26.6   

Adjustments and eliminations

     (73,676     (93,612     (19,936       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   ¥ 1,946,566      ¥ 1,994,103      ¥ 47,537        2.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

19


Table of Contents
     Years ended March 31,      Increase
(Decrease)
 
     2011      2012     
     Amount      Amount      Amount     %  
     (Yen in millions)  

Depreciation and amortization:

          

Fine Ceramic Parts Group

   ¥ 5,106       ¥ 6,767       ¥ 1,661        32.5   

Semiconductor Parts Group

     10,786         11,795         1,009        9.4   

Applied Ceramic Products Group

     13,786         14,843         1,057        7.7   

Electronic Device Group

     13,818         13,762         (56     (0.4

Telecommunications Equipment Group

     10,172         8,949         (1,223     (12.0

Information Equipment Group

     11,027         10,131         (896     (8.1

Others

     4,767         4,668         (99     (2.1

Corporate

     2,082         2,205         123        5.9   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   ¥ 71,544       ¥ 73,120       ¥ 1,576       2.2   
  

 

 

    

 

 

    

 

 

   

 

 

 

Capital expenditures:

          

Fine Ceramic Parts Group

   ¥  11,319       ¥ 11,050       ¥ (269)        (2.4

Semiconductor Parts Group

     12,998         13,279         281        2.2   

Applied Ceramic Products Group

     17,660         13,001         (4,659     (26.4

Electronic Device Group

     12,118         14,193         2,075        17.1   

Telecommunications Equipment Group

     3,886         4,142         256        6.6   

Information Equipment Group

     7,437         6,199         (1,238     (16.6

Others

     2,747         2,800         53        1.9   

Corporate

     2,515         1,744         (771     (30.7
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   ¥ 70,680       ¥  66,408       ¥ (4,272     (6.0
  

 

 

    

 

 

    

 

 

   

 

 

 

Note:

With regard to Reporting segment information of Net sales and Income before income taxes, please refer to the accompanying “1. BUSINESS RESULTS (1) Analysis of Business Results Consolidated Results by Reporting Segment” on page 5.

 

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ii) Geographic segments (Net sales and Income before income taxes by geographic area):

 

     Years ended March 31,     Increase
(Decrease)
 
     2011     2012    
     Amount     Amount     Amount         %      
     (Yen in millions)  

Net sales:

        

Japan

   ¥ 573,646      ¥ 576,757      ¥ 3,111        0.5   

Intra-group sales and transfer between geographic areas

     451,620        380,978        (70,642     (15.6
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,025,266        957,735        (67,531     (6.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Asia

     184,140        176,636        (7,504     (4.1

Intra-group sales and transfer between geographic areas

     181,027        171,386        (9,641     (5.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     365,167        348,022        (17,145     (4.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Europe

     221,343        214,259        (7,084     (3.2

Intra-group sales and transfer between geographic areas

     33,394        30,134        (3,260     (9.8
  

 

 

   

 

 

   

 

 

   

 

 

 
     254,737        244,393        (10,344     (4.1
  

 

 

   

 

 

   

 

 

   

 

 

 

United States of America

     264,200        199,256        (64,944     (24.6

Intra-group sales and transfer between geographic areas

     28,652        20,550        (8,102     (28.3
  

 

 

   

 

 

   

 

 

   

 

 

 
     292,852        219,806        (73,046     (24.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Others

     23,595        23,962        367        1.6   

Intra-group sales and transfer between geographic areas

     13,469        11,240        (2,229     (16.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     37,064        35,202        (1,862     (5.0

Adjustments and eliminations

     (708,162     (614,288     93,874          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,266,924      ¥ 1,190,870      ¥ (76,054     (6.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes:

        

Japan

   ¥ 97,407      ¥ 62,407      ¥ (35,000     (35.9

Asia

     18,657        17,824        (833     (4.5

Europe

     16,464        11,572        (4,892     (29.7

United States of America

     19,966        7,732        (12,234     (61.3

Others

     4,870        1,048        (3,822     (78.5
  

 

 

   

 

 

   

 

 

   

 

 

 
     157,364        100,583        (56,781     (36.1

Corporate

     16,882        13,876        (3,006     (17.8

Equity in losses of affiliates and unconsolidated subsidiaries

     (160     (36     124          

Adjustments and eliminations

     (1,754     470        2,224          
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 172,332      ¥ 114,893      ¥ (57,439     (33.3
  

 

 

   

 

 

   

 

 

   

 

 

 

iii) Geographic segments (Net sales by region):

With regard to Information of Geographic segments, please refer to the accompanying “1.BUSINESS RESULTS (1) Analysis of Business Results Net Sales by Geographic Area” on page 6.

 

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(7) Earnings per Share

With regard to earnings per share, please refer to “Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012” on page 1 and “3. CONSOLIDATED FINANCIAL STATEMENTS (2) Consolidated Statements of Income” on page 15.

(8) Material Subsequent Event

None.

(9) Cautionary Statement for Premise of a Going Concern

None.

(10) Other Note

AVX Corporation (AVX), a consolidated subsidiary of Kyocera in the United States has been identified by the United States Environmental Protection Agency (EPA), state governmental agencies or other private parties as a potentially responsible party (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) or equivalent state or local laws for clean-up and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA has generally been construed to authorize joint and several liability, the EPA could seek to recover all clean-up costs from any one of the PRPs at a site despite the involvement of other PRPs. At certain sites, financially responsible PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. AVX believes that liability resulting from these sites will be apportioned between AVX and other PRPs.

To resolve its liability at the sites at which AVX has been named a PRP, AVX has entered into various administrative orders and consent decrees with federal and state regulatory agencies governing the timing and nature of investigation and remediation. As is customary, the orders and decrees regarding sites where the PRPs are not themselves implementing the chosen remedy contain provisions allowing the EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions.

In 1991, in connection with a consent decree, AVX paid ¥8,878 million ($66 million), plus interest, toward the environmental conditions at, and remediation of, New Bedford Harbor in the Commonwealth of Massachusetts (the harbor) in settlement with the United States and the Commonwealth of Massachusetts, subject to reopener provisions, including a reopener if certain remediation costs for the site exceed ¥10,701 million ($130.5 million). In 2007, AVX received notification from the EPA and the Department of Justice indicating that the United States was preparing to exercise the cost reopener. In March 2011, the EPA issued the Fourth Explanation of Significant Differences (ESD #4) that explains the planned changes to the existing remedial action plan for the harbor to include the use of a confined aquatic disposal (CAD) cell, along with interim off-site transportation and disposal of certain contaminated dredge spoils, and the continued use of long-term on-site storage for other contaminated dredge spoils. ESD #4 provides future cost estimates under the new remedial action plan (in addition to costs incurred to date) ranging from ¥29,684 million ($362 million) to ¥32,882 million ($401 million), net present value, based on certain criteria included in the ESD #4. The EPA has indicated that remediation costs through December 31, 2011 were approximately ¥37,392 million (approximately $456 million), not all of which are subject to the reopener provisions.

On April 18, 2012, the EPA issued to AVX a Unilateral Administrative Order (UAO) directing AVX to perform the Remedial Design, the Remedial Action and Operation and Maintenance for the harbor clean-up. The effective date set forth in the UAO is June 18, 2012, pursuant to which AVX has until June 25, 2012 to inform the EPA if it intends to comply with the UAO.

AVX has not received complete documentation of past response costs from the EPA and therefore has not yet completed an investigation of the monies spent or available defenses in light of these notifications and indications. AVX has also not yet determined whether AVX can avoid responsibility for all, or some portion, of these past or future costs because the remediation method has changed over time and costs can be appropriately apportioned to parties other than AVX. AVX anticipates further discussions with the U.S. Department of Justice, the EPA, and the Commonwealth of Massachusetts in the first half of the year ending March 31, 2013.

AVX is continuing to assess the UAO as well as potential defenses and other actions with respect to the site. However, in light of the foregoing, AVX considers it to be probable and reasonably estimable that AVX will incur cost within a range of approximately ¥7,900 million (approximately $100 million) to ¥59,860 million ($730 million), with no amount within that range representing a more likely outcome until such time as AVX completes an investigation with regard to monies spent, available defenses and other matters. AVX recognizes liabilities for environmental exposures when analysis indicates that is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. When a range of loss can be estimated, AVX accrues the most likely amount. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. Accordingly, AVX has recorded a charge for the year ended March 31, 2012 of ¥7,900 million ($100 million) with respect to this matter.

 

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