Kyocera Corporation · TSE:6971
Kyocera — FY2016 Earnings Presentation
25 slides from Kyocera's earnings presentation, Apr 28, 2016
Slide 1: Financial Presentation (Year ended March 31, 2016)
April 28, 2016 Financial Presentation (Year ended March 31, 2016) Goro Yamaguchi President and Representative Director
Slide 2: 1. Financial Results for the Year Ended March 31, 2016
1. Financial Results for the Year Ended March 31, 2016 1
Slide 3: Financial Results for the Year Ended March 31, 2016
Financial Results for the Year Ended March 31, 2016 (Unit: Yen in millions) Years ended March 31, Change 2015 2016 Amount % to net sales Amount % to net sales Amount % Net sales 1,526,536 100.0% 1,479,627 100.0% -46,909 -3.1% Profit from operations 93,428 6.1% 92,656 6.3% -772 -0.8% Pre-tax income 1
Slide 4: Summary of FY3/2016 Results
Summary of FY3/2016 Results 1. Sales decreased slightly year on year (1) Increased sales in the Fine Ceramic Parts Group and Electronic Device Group for automotive-related and smartphone markets (2) Decreased sales in the Telecommunications Equipment Group after refining the lineup of mobile handset
Slide 5: Sales by Reporting Segment for the Year Ended March 31, 2016
Sales by Reporting Segment for the Year Ended March 31, 2016 (Unit: Yen in millions) Years ended March 31, Change 2015 2016 Amount % of net sales Amount % of net sales Amount % Fine Ceramic Parts Group 90,694 5.9% 95,092 6.4% 4,398 4.8% Semiconductor Parts Group 217,879 14.3% 216,263 14.6% -1,616 -0
Slide 6: Operating Profit by Reporting Segment for the Year Ended March 31, 2016
Operating Profit by Reporting Segment for the Year Ended March 31, 2016 (Unit: Yen in millions) Years ended March 31, Change 2015 2016 Amount % to net sales Amount % to net sales Amount % Fine Ceramic Parts Group 16,134 17.8% 15,745 16.6% -389 -2.4% Semiconductor Parts Group 33,971 15.6% 28,934 13.4
Slide 7: Financial Results by Reporting Segment (1)
Financial Results by Reporting Segment (1) Fine Ceramic Parts Group （Unit: Yen in millions） <Major factors for changes> Years ended Change March 31, Profit remained roughly on par due primarily to the impact of a change in 2015 2016 Amount % product mix, despite a sales growth due Sales 90,694 95,
Slide 8: Financial Results by Reporting Segment (2)
Financial Results by Reporting Segment (2) Applied Ceramic Products Group （Unit: Yen in millions） <Major factors for changes> Years ended Change March 31, Increased profit due mainly to effects of 2015 2016 Amount % reduce costs in the solar energy business, despite a sales decline in this business
Slide 9: Financial Results by Reporting Segment (3)
Financial Results by Reporting Segment (3) Telecommunications Equipment Group （Unit: Yen in millions） Years ended <Major factors for changes> Change March 31, Operating loss was reduced compared 2015 2016 Amount % with the previous fiscal year which saw the recording of impairment of goodwill, Sale
Slide 10: Financial Results by Reporting Segment (4)
Financial Results by Reporting Segment (4) Others （Unit: Yen in millions） Years ended <Major factors for changes> Change March 31, Increased profit due to gain on sales of 2015 2016 Amount % assets, despite decreased sales due to a decline in sales of subsidiaries such as Sales 172,925 167,793 -5,1
Slide 11: 2. Financial Forecasts for the Year Ending March 31, 2017
2. Financial Forecasts for the Year Ending March 31, 2017 10
Slide 12: Financial Forecasts for the Year Ending March 31, 2017
Financial Forecasts for the Year Ending March 31, 2017 (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2016 2017 Amount % to net sales Amount % to net sales Amount % Net sales 1,479,627 100.0% 1,520,000 100.0% 40,373 2.7% Profit from operations 92,656 6.3% 110,000 7.2% 17,3
Slide 13: Sales Forecast by Reporting Segment
Sales Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2016 2017 Amount % of net sales Amount % of net sales Amount % Fine Ceramic Parts Group 95,092 6.4% 101,000 6.7% 5,908 6.2% Semiconductor Parts Group 236,265 16.0% 237,000 15.6% 735 0.3% App
Slide 14: Operating Profit Forecast by Reporting Segment
Operating Profit Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2016 2017 Amount % to net sales Amount % to net sales Amount % Fine Ceramic Parts Group 15,745 16.6% 15,000 14.9% -745 -4.7% Semiconductor Parts Group 42,232 17.9% 26,000 11.0% -1
Slide 15: Financial Forecasts by Reporting Segment (1)
Financial Forecasts by Reporting Segment (1) Fine Ceramic Parts Group （Unit: Yen in millions） <Major factors for changes> Year ended Year ending Change March 31, March 31, Sales growth due to an increase in sales of 2016 2017 components for industrial machinery such as Amount % semiconductor proces
Slide 16: Financial Forecasts by Reporting Segment (2)
Financial Forecasts by Reporting Segment (2) Applied Ceramic Products Group （Unit: Yen in millions） <Major factors for changes> Year ended Year ending Change Sales up due to contribution from SGS March 31, March 31, Tool Company in the cutting tool 2016 2017 Amount % business and sales growth in th
Slide 17: Financial Forecasts by Reporting Segment (3)
Financial Forecasts by Reporting Segment (3) Telecommunications Equipment Group （Unit: Yen in millions） <Major factors for changes> Year ended Year ending Change March 31, March 31, Sales down due to a decline in sales 2016 2017 Amount % volume, despite efforts to market new products focusing on hi
Slide 18: Challenges and Initiatives to Achieve Financial Forecasts
Challenges and Initiatives to Achieve Financial Forecasts 1. Structural reform of the Telecommunications Equipment Group 2. Initiatives to expand core businesses (1) Increase sales in the Semiconductor Parts Group (2) Expand business through M&A (3) Increase sales in automotive-related businesses Pl
Slide 19: Structural Reform of the Telecommunications Equipment Group
Structural Reform of the Telecommunications Equipment Group 1. Integrate production sites Kitami Plant（in Hokkaido） Mobile handsets Integrate into Kitami Japan Plant around July 2016 Tanagura Plant（in Fukushima） PHS related products and Strengthen mobile Mobile handsets handset business ・ Cost compe
Slide 20: Initiatives to Expand Core Businesses (1)
Initiatives to Expand Core Businesses (1) －Increase sales in the Semiconductor Parts Group－ Strengthen business foundations Expand organic materials business Bolster production of miniaturized, low-profile packages for Pursue further synergies and telecommunication devices reinforce competitiveness
Slide 21: Initiatives to Expand Core Businesses (2)
Initiatives to Expand Core Businesses (2) －Expand business through M&A－ Create a business structure capable of being comprehensive cutting tool manufacturer < SGS Tool Company > ・ Manufacturing and sales of solid tools × ・ Headquarters：Ohio, U.S.A. ・ Consolidation : May 2016 (Planned) Sales in U.S.A
Slide 22: Initiatives to Expand Core Businesses (3)
Initiatives to Expand Core Businesses (3) －Increase sales in automotive-related businesses－ Sales of core products (FY15 sales as standard of 100) LED packages Camera modules 9 times Proliferation of LED headlights for automotives Increase number of on-board 190 cameras 160 130 100 160 140 100 FY3/2
Slide 23: Review of Dividend Payout Ratio
Review of Dividend Payout Ratio Review dividend payout ratio from FY3/2017 Commencing FY3/2017 Further enhance the return of profit to shareholders Around 40% and expand shareholder base Forecast of payout ratio for FY3/2017 43.2％ Since FY3/2014 30％ or more Since FY3/2005 Payout ratio 20～25％ Impleme
Slide 24: Trend of Sales and Pre-tax Income
Trend of Sales and Pre-tax Income Sales Pre-tax income 18,000 (Unit: Yen in billions) 16,000 1,526.5 1,520.0 1,479.6 1,447.4 Aim for growth through 14,000 structural reform and business expansion in core 12,000 markets 10,000 146.3 145.6 130.0 8,000 121.9 6,000 4,000 2,000 0 FY3/2014 2014/3 FY3/2015
Slide 25: Forward-Looking Statements
Forward-Looking Statements Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us.