Kyocera Corporation · TSE:6971
Kyocera — FY2018 Earnings Presentation
28 slides from Kyocera's earnings presentation, Apr 27, 2018
Slide 1: Financial Presentation (Year Ended March 31, 2018)
April 27, 2018 Financial Presentation (Year Ended March 31, 2018) Hideo Tanimoto President and Representative Director This is an English translation of the Japanese original of financial presentation for the year ended March 31, 2018. The translation is prepared solely for the reference and conveni
Slide 2: Today's Presentation
Today’s Presentation 1. Financial Results for the Year Ended March 31, 2018 (FY3/2018) 2. Financial Forecasts for the Year Ending March 31, 2019 (FY3/2019) Note: Kyocera has changed the classification of its reporting segments from FY3/2018. Business results for FY3/2017 have been reclassified in li
Slide 3: 1. Financial Results for the Year Ended March 31, 2018
1. Financial Results for the Year Ended March 31, 2018 2
Slide 4: Financial Results for the Year Ended March 31, 2018
Financial Results for the Year Ended March 31, 2018 (Unit: Yen in millions) Years Ended March 31, Change 2017 2018 Amount % to net sales Amount % to net sales Amount % Net sales 1,422,754 100.0% 1,577,039 100.0% 154,285 10.8% Profit from operations 104,542 7.3% 95,575 6.1% -8,967 -8.6% Pre-tax incom
Slide 5: Sales by Reporting Segment for the Year Ended March 31, 2018
Sales by Reporting Segment for the Year Ended March 31, 2018 (Unit: Yen in millions) Years ended March 31, Change 2017 2018 Amount % of net sales Amount % of net sales Amount % Industrial & Automotive Components Group 230,229 16.2% 287,620 18.2% 57,391 24.9% Semiconductor Components Group 245,727 17
Slide 6: Operating Profit by Reporting Segment for the Year Ended March 31, 2018
Operating Profit by Reporting Segment for the Year Ended March 31, 2018 (Unit: Yen in millions) Years ended March 31, Change 2017 2018 Amount % to net sales Amount % to net sales Amount % Industrial & Automotive Components Group 22,442 9.7% 32,557 11.3% 10,115 45.1% Semiconductor Components Group 25
Slide 7: Summary of FY3/2018 Results
Summary of FY3/2018 Results 1 Posted new record high in sales Strong component demand in information and communications, automotive-related and industrial machinery markets New product introductions and aggressive sales promotion activities in Document Solutions Group Sales expansion on the back of
Slide 8: Main Policies Implemented and Decided in FY3/2018
Main Policies Implemented and Decided in FY3/2018 Q1 Q2 Q3 Q4 June/ Operation of new wing July/ Construction of new wing November/ Construction of March/ Decision to add new Strengthen management foundations production at Mie Tamaki Plant, at China Shilong Plant, new wing at Kagoshima wing at Kagosh
Slide 9: M&A Implemented in FY03/2018
M&A Implemented in FY03/2018 Reporting segment Company/business name Business (related business/company) Senco Holdings, Inc. (USA) Pneumatic tools Industrial & Automotive Components Group (Industrial tool business) Power tool business of Power tools Ryobi Limited Automotive sensor business of TT El
Slide 10: 2. Financial Forecasts for the Year Ending March 31, 2019
2. Financial Forecasts for the Year Ending March 31, 2019 Note: Kyocera plans to voluntarily adopt IFRS to its consolidated financial statements in place of the current Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) from the three months ending June 30, 2018. Forecasts f
Slide 11: Financial Forecasts for the Year Ending March 31, 2019
Financial Forecasts for the Year Ending March 31, 2019 (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2018 2019 (for reference) U.S. GAAP IFRS Amount % to net sales Amount % to net sales Amount % Net sales 1,577,039 100.0% 1,650,000 100.0% 72,961 4.6% Profit from operation
Slide 12: Sales Forecast by Reporting Segment
Sales Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, Change 2018 2019 (for reference) U.S. GAAP IFRS Amount % of net sales Amount % of net sales Amount % Industrial & Automotive Components Group 287,620 18.2% 313,000 19.0% 25,380 8.8% Semiconductor C
Slide 13: Operating Profit Forecast by Reporting Segment
Operating Profit Forecast by Reporting Segment (Unit: Yen in millions) Year ended March 31, Year ending March 31, 2018 2019 Change (for reference) U.S. GAAP IFRS Amount % to net sales Amount % to net sales Amount % Industrial & Automotive Components Group 32,557 11.3% 36,000 11.5% 3,443 10.6% Semico
Slide 14: Financial Forecasts (1): Industrial & Automotive Components Group
Financial Forecasts by Reporting Segment (1) Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) 500Industrial & Automotive Components Group <Major factors for changes> 000 (Unit: Yen in billions) FY3/19 forecast（vs FY3/18） 500 Sales to increase for industrial tool
Slide 15: Financial Forecasts (2): Semiconductor Components Group
Financial Forecasts by Reporting Segment (2) Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) 500Semiconductor Components Group <Major factors for changes> (Unit: Yen in billions) 000 FY3/19 forecast（vs FY3/18） 257.2 259.0（+0.7%） Maintain high level sales in cer
Slide 16: Financial Forecasts (3): Electronic Devices Group
Financial Forecasts by Reporting Segment (3) Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) Electronic Devices Group <Major factors for changes> (Unit: Yen in billions) FY3/19 forecast（vs FY3/18） 345.0（+13.1%） Sales to increase in electronic components for ,50
Slide 17: Financial Forecasts (4): Communications Group
Financial Forecasts by Reporting Segment (4) Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) <Major factors for changes> Communications Group 3,500 FY3/19 forecast（vs FY3/18） (Unit: Yen in billions) Sales to decrease due to a decline in sales of mobile 3,000 ph
Slide 18: Financial Forecasts (5): Document Solutions Group
Financial Forecasts by Reporting Segment (5) Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) Document Solutions Group <Major factors for changes> 5,000 (Unit: Yen in billions) FY3/19 forecast（vs FY3/18） 4,500 4,000 385.0（+3.8%） Sales to increase due to growth i
Slide 19: Financial Forecasts (6): Life & Environment Group
Financial Forecasts by Reporting Segment (6) 2,500 Sales Operating profit Operating profit ratio ( ) Change from FY3/18 (for reference) Life & Environment Group <Major factors for changes> (Unit: Yen in billions) 2,000 FY3/19 forecast（vs FY3/18） 149.2 1,500 Reduce operating loss in solar energy bu
Slide 20: Improve Profitability in Solar Energy Business
Improve Profitability in Solar Energy Business 1 FY3/19 forecast (vs FY3/18) 1H 2H Consolidate domestic production Cost reductions: Aim to return to sites Approx. 25% profitability in ・ Consolidation cost: Approx. ¥1bn (vs end of FY3/18) second half of FY3/19 ・ Production capacity: Down approx. 15%
Slide 21: FY3/21 Sales 2 Trillion Yen, PTP Ratio 15%
Basic Policy toward Mid-Term Business Growth FY3/21 Sales 2 Trillion Yen , PTP Ratio 15% Information & Automotive Environment & Medical & Health Communication Related Energy Care Double productivity, Accelerate internal synergies and process innovation external collaborations Expand existing busines
Slide 22: Aggressive Business Investment to Drive Growth (1)
Aggressive Business Investment to Drive Growth (1) Boost production of fine ceramic parts for semiconductor processing equipment ・Increased demand for semiconductor processing equipment 2017 global market shipments: Approx. ¥6 trillion* Record high *SEMI research (April 2018) ・Growing need for ceram
Slide 23: Aggressive Business Investment to Drive Growth (2)
Aggressive Business Investment to Drive Growth (2) Boost production of ceramic packages for IoT and ADAS Increased orders of ceramic packages following sharp jump in demand for products with communication function and cameras SMD ceramic Ceramic packages packages for image sensors Toward a 25% incre
Slide 24: Initiatives to Slash Costs and Double Productivity
Initiatives to Slash Costs and Double Productivity Aim to double productivity in each business by sharing information throughout the Group Production Production AI Laboratory Robot Utilization Center (Opened Sept. 2017) (Opened Oct. 2017) Provide AI utilization tools Support robot utilization to eac
Slide 25: Strengthen R&D Structure to Create New Business
Strengthen R&D Structure to Create New Business Accelerate development by accurately grasping market needs Previous FY3/19~ Utilize inter-divisional structure Deploy marketing Marketing structure R&D structure and R&D in each Component Equipment Medical Create new products/services business division
Slide 26: Repurchase of own shares
Repurchase of own shares Facilitate flexible capital strategies such as stock swaps 【Outline】 （1）Type of shares to be repurchased Common stock （2）Total number of shares to be Up to 7,200,000 shares repurchased (Percentage to total number of shares issued excluding treasury shares: 1.96 %) （3）Total a
Slide 27: Trend of Sales and Pre-tax Income
Trend of Sales and Pre-tax Income Sales (Unit: Yen in billions) 2,000.0 20,000 Pre-tax income Aim to post record high for Pre-tax income ratio second consecutive period 18,000 1,650.0 1,577.0 16,000 1,422.8 14,000 300.0 3,000 12,000 10,000 190.0 8,000 15.0% 137.8 131.9 6,000 11.5% 4,000 9.7% 8.4% 2,
Slide 28: Cautionary Statement for Forecasts
Cautionary Statement for Forecasts 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 known and unknown risks, uncertain