Kyocera Corporation · TSE:6971
Kyocera — Investor Day (November 2022)
31 slides from Kyocera's investor day presentation, Nov 25, 2022
Slide 1: Kyocera IR Day
November 25, 2022 Kyocera IR Day Hideo Tanimoto President and Representative Director Note: This is an English translation of the Japanese original. This translation is prepared for the reference and convenience solely for those who do not use Japanese. In the event of any discrepancy between this t
Slide 2: Today's Explanation
Today’s Explanation ・ Kyocera Group Financial Targets ・ Management Strategy to Achieve Financial Targets (1) Proactively Invest in Priority Areas (2) Strengthen Management-led Business Reviews ・ Capital Allocation to Achieve Financial Targets ・ Financial Targets by Business Segment (1) Core Componen
Slide 3: Kyocera Group Financial Targets
Kyocera Group Financial Targets Aim for sales revenue of 3 trillion yen by FY Mar. 2029 10% or higher ROE (%) 5.4% 5.3% 3,000.0 Sales revenue 3.6% (Yen in billions) 20.0% Profit before income taxes (Yen in billions) Profit ratio (%) 2,000.0 1,838.9 600.0 1,526.9 10.8% 11.0% 7.7% 220.0 198.9 117.6 FY
Slide 4: Management Strategy to Achieve Financial Targets
Management Strategy to Achieve Financial Targets Proactively invest in priority areas Expand Fields of expertise x High growth potential Sales Cutting-edge semiconductors 5G/6G Mobility etc. Strengthen management-led business reviews Enhance ・ Further enhance profitability in highly profitable busin
Slide 5: Proactively Invest in Priority Areas (1)
Expand Sales Proactively Invest in Priority Areas (1) Concentrate investment in markets and products with high growth potential Continue high-level Trends of capital expenditures and R&D expenses investment from R&D expenses FY Mar. 2024 onward Capital expenditures 295.0 (Unit: Yen in billions) 235.
Slide 6: Proactively Invest in Priority Areas (2)
Expand Sales Proactively Invest in Priority Areas (2) Prioritize capital investment in products with high market share and high added value FY Mar. 2023 Outlook of semiconductor-related markets (Kyocera forecast) New buildings at Kagoshima Kokubu Plant Expect continued demand, Scheduled to sequentia
Slide 7: Proactively Invest in Priority Areas (3)
Expand Sales Proactively Invest in Priority Areas (3) Promote R&D to create new businesses Development Address social issues Products under development and new businesses theme M&A High efficiency FY Mar. 2023 Realize a low-carbon society Expand application GaN lasers External collaboration FY Mar.
Slide 8: Strengthen Management-led Business Reviews
Enhance Profitability Strengthen Management-led Business Reviews Raise profitability by ranking businesses based on business profit Highly Profitable Businesses Challenging Businesses 1. Improve productivity Make a fundamental review of strategy ◆Introduce smart factories and strengthen monitoring ・
Slide 9: Estimate of Capital Allocation to Achieve Financial Targets
Estimate of Capital Allocation to Achieve Financial Targets (Unit: Yen in billions) Three-Year Cumulative Total from FY Mar. 2024 to FY Mar. 2026 (Preliminary Estimate) Proactively invest in growth areas ・Increase production capacity after clarifying priority for Capital products with high demand, e
Slide 10: Financial Targets by Business Segment
Financial Targets by Business Segment Core Components Business Electronic Components Business Solutions Business Sales revenue 1,000 billion yen / Sales revenue 600 billion yen / Sales revenue 1,400 billion yen / Profit ratio 24.0% Profit ratio 25.0% Profit ratio 14.0% （Former target announced on No
Slide 11: Initiatives to Achieve Financial Targets (1) Core Components Business
Initiatives to Achieve Financial Targets (1) Core Components Business Hiroshi Fure Director, Managing Executive Officer Executive General Manager of Core Components Business 10 © 2022 KYOCERA Corporation
Slide 12: Core Components Business: Vision and Key Actions
Core Components Business Vision and Key Actions to Achieve Financial Targets Vision We realize the management rationale by providing core products of sustainable society and creation of healthy and fulfilling life. Medium-term initiatives 1. Thorough selection and 2. Strengthen management concentrat
Slide 13: 1. Thorough Selection and Concentration
Core Components Business 1. Thorough Selection and Concentration Sales revenue by business unit Expand sales mainly in growing markets such as (Unit: Yen in billions) information communications, semiconductors and automotives ■Others ■Industrial & Automotive Components Unit ■Semiconductor Components
Slide 14: Expand Business for Growth Items: Semiconductor Components Unit
Core Components Business Expand Business for Growth Items: Semiconductor Components Unit Sales revenue and profit ratio Increase production of by business unit 50.0% high-value-added products ■ Sales revenue (Yen in billions) ● Business profit ratio (%) 600.0 45.0% Micro-wiring and high-frequency St
Slide 15: Expand Business for Growth Items: Industrial & Automotive Components Unit
Core Components Business Expand Business for Growth Items: Industrial & Automotive Components Unit Sales revenue and profit ratio Increase production of components for by business unit 50.0% advanced equipment ■ Sales revenue (Yen in billions) ● Business profit ratio (%) 45.0% Processing technology
Slide 16: 2. Strengthen Management Foundation (Cross-Organizational Projects)
Core Components Business 2. Strengthen Management Foundation (Cross-Organizational Projects) Jewelry and Applied Projects Fine Ceramic Components Automotive Components Optical Components Ceramic Packages Organic Packages and Boards Medical Devices Ceramic Related Products Technology Engineer team pr
Slide 17: Initiatives to Achieve Financial Targets (2) Electronic Components Business
Initiatives to Achieve Financial Targets (2) Electronic Components Business John Sarvis Managing Executive Officer Executive General Manager of Electronic Components Business Koichi Kano Director, Managing Executive Officer Deputy Executive General Manager of Electronic Components Business 16 © 2022
Slide 18: Electronic Components Business: Focus on Growing Markets
Electronic Components Business Focus on Growing Markets FY Mar. 2029 (Target) % of sales revenue Growth vs to total FY Mar. 2023 Sales revenue by market Medical 3% x 1.9 ■ Sales revenue (Yen in billions) ● Business profit ratio (%) 600.0 Aerospace 5% x 2.0 +57.9% Data storage IC-related 7% x 2.4 25.
Slide 19: Proactively invest in areas of competitive advantage
Electronic Components Business 1. Proactively invest in areas of competitive advantage Crystal devices MEMS devices Core in-house basic technology Next-generation oscillator products Timing devices (Photolithography & CVM & Packaging) (Small, thin, high-temperature properties) Products Tantalum capa
Slide 20: Expand global production bases; develop unique technology
Electronic Components Business 2. Expand global production 3. Secure labor force and 4. Develop unique technology bases further enhance productivity ⚫ Build increased production and ⚫ Taking advantage of having global ⚫ KAVX’s low-ESL product design capabilities supply systems for priority products
Slide 21: Summary: Electronic Components Business
Electronic Components Business Summary ⚫ Hold face-to-face meetings each quarter with executives from both Japan (Kyocera) and U.S. (KAVX) ⚫ Completed integration of sales and marketing organizations in all regions ⚫ Established a sub-segment to oversee the businesses of both companies from 2022 (ML
Slide 22: Electronic Components Business
Electronic Components Business Please refer to “Cautionary Statements with respect to Forward-Looking Statements” on the last page. 21 © 2022 KYOCERA Corporation
Slide 23: Initiatives to Achieve Financial Targets (3) Solutions Business
Initiatives to Achieve Financial Targets (3) Solutions Business Norihiko Ina Director, Managing Executive Officer Executive General Manager of Solutions Business 22 © 2022 KYOCERA Corporation
Slide 24: Solutions Business: Financial Targets and Vision
Solutions Business Financial Targets ■Vision ■ Sales revenue (Yen in billions) ● Business profit ratio (%) 1,400.0 +35.5% Create as much happiness as possible, and build a better society 1,033.0 983.7 To provide solutions for social agendas and 14.0% challenges facing customers as well as high-quali
Slide 25: Key Actions to Achieve Financial Targets
Solutions Business Key Actions to Achieve Financial Targets 1 Strengthen existing businesses Document Solutions Unit and Industrial Tools Unit 2 Reform low-profit, low-growth businesses Telecommunications equipment and Smart energy Addresses customer and social issues 3 Business integration activiti
Slide 26: Strengthen Existing Businesses
Solutions Business 1 Strengthen Existing Businesses Document Solutions Unit Industrial Tools Unit Sales revenue 600 billion yen / Sales revenue 400 billion yen / Profit ratio 15.0% Profit ratio 15.0% Sales revenue (Yen in billions) 600.0 Sales revenue (Yen in billions) Business profit ratio (%) Busi
Slide 27: Reform Low-profit Businesses: Telecommunications Equipment
Solutions Business 2 Reform Low-profit, Low-growth Businesses: Telecommunications Equipment Transform the business to highly profitable by focusing on markets that can leverage the benefits of “JAPAN MADE” concept and that high added value can be provided Shift from “Consumer Model” to “Business Use
Slide 28: Reform Low-profit Businesses: Smart Energy
Solutions Business 2 Reform Low-profit, Low-growth Businesses: Smart Energy Shift from selling “Products” to “Services” High renewable energy demand + Soaring electricity prices Kyocera’s strength: possessing business of three energy equipment Procure renewable energy + Manage supply/demand Introduc
Slide 29: Business Integration Activities to Create New Businesses
②既存プロダクトラインの枠を超え、 Solutions Business 社会そしてお客様の課題を解決する新規事業 Addresses customer and social issues 3 Business Integration Activities to Create New Businesses By sharing activities of business product lines, company-wide marketing approach and technical approach in R&D and integrating competencies of the
Slide 30: Create as much happiness as possible, and build a better society
Solutions Business Create as much happiness as possible, and build a better society To provide solutions for social agendas and challenges facing customers as well as high-quality and high-value added products and services, and create innovation to contribute achievement of society and humankind wit
Slide 31: Cautionary Statements with respect to Forward-Looking Statements
Cautionary Statements with respect to Forward-Looking Statements Certain of the statements made in this document are forward-looking statements, which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve know