Kyocera Corporation Financial Presentation

Transcription

1 Kyocera Corporation Financial Presentation ( Six Months ended October 31, 23) November 7, 23 KYOCERA Corporation

2 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: general economic conditions in our markets, which are primarily Japan, North America, Europe, and Asia, including in particular China; changes in exchange rates, particularly between the yen and the U.S. dollar and Euro, respectively, in which we make significant sales; our ability to launch innovative products and otherwise meet the advancing technical requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components; and the extent and pace of future growth or contraction in information technology-related markets around the world, including those for communications and personal computers. Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document. 1

3 Business Environment Forecast Year Ending March 31, 24 Economy: Persistent economic uncertainty in 2H Slowdown in growth of the U.S. economy; weaker dollar, stronger yen Assumed Exchange Rates: (2H) US$1= 19; 1 Euro= 126 (full year) US$1= 114; 1 Euro= 13 (Negative impact, compared with fiscal March 23, of approx billion on sales and of approx. 3.9 billion on pre-tax income on a full-year basis) IT Industries: Expect revitalization in production of electronic equipment due to increased demand for advanced mobile phones, computer equipment, DSCs, etc. CY23 global shipment volume forecast (forecast by the Company) Mobile Handsets: Between million units (approx. 1% increase compared with CY22) Anticipate rise in demand for color LCDs and camera-equipped mobile handsets overseas and mobile data communications terminals in Japan. PCs: Between million units (approx. 7-1% increase compared with CY22) DSCs: Approx. 4 million units (up 3% on CY22) Component Prices: Expect annual price decline of approx. 1% for general electronic components With respect to the information on this page, please refer to the accompanying note on page 1. 2

4 Consolidated Financial Forecast Year Ending March 31, 24 (Unit: Millions of yen) Year ending March 31, 24 Amount % to net sales Year ended March 31, 23 Amount % to net sales Percentage change Net sales 1,14, 1. 1,69, Profit from operations 75, , Pre-tax income 79, , Net income 5, , EPS (Diluted - yen) Capital expenditures 52, 4.6 4, Depreciation 59, , R&D expenses 46, 4. 47, Average exchange rates: U.S. dollar (Yen) Euro (Yen) With respect to forecasts and targets, please refer to the accompanying note on page 1. 3

5 Consolidated Sales Forecast by Operating Segment (Unit: Billions of yen) Net Sales Fine Ceramics Group 255. (Unit: Billions of yen) 3 15 Operating Profit Operating Profit Ratio (Unit: %) /2 (Unit: Billions of yen) /3 Net Sales /4 (Forecast) 3/2 Electronic Device Group 251. (Unit: Billions of yen) /3 3/4 (Forecast) Operating Profit (Unit: %) 8 3/2 3/3 3/4 (Forecast) 3/2 3/3 3/4 (Forecast) Commencing in the f iscal y ear ended March 31, 23, basic R&D expenses of the Company itself, previously included within Others, hav e been charged to the respective operating segments. Accordingly, the Company has also reclassified previously published operating profit of such operating segments f or the f iscal y ear ended March 31, With respect to forecasts and targets, please refer to the accompanying note on page 1. この予想につきましては 1 ページに記載の注記にご留意下さい 4

6 Measures to Boost Profitability of Electronic Device Group Target: Achieve double digit pre-tax income ratio by FY5 Establish new sales subsidiaries Sell a broad range of Kyocera Group products Crystal components Kinseki, Kyocera Capacitors Connectors KYOCERA ELCO Raise pre-tax income ratio of the Company s ceramic capacitor business to double digits by the end of March 24 Introduce divisional organization system Proceed further structural reform Enhance production efficiency and reduce lead-time Integrate production bases for ceramic capacitors Establish product development system that meets with production process development Kyocera Write down of tantalum material inventory and long-term purchase agreements ( 1.4 billion) Forecast reduction in raw material costs in 2H AVX With respect to the information on this page, please refer to the accompanying note on page 1. 5

7 Pursue Synergies with Kinseki, Ltd. Rapidly Achieve Pre-Tax Profit Ratio of 15% Create a Highly Competitive Structure through Integrated Technologiesogies Crystal-Related Components Business Ending March 26 Sales Target Targeted Markets Expected Synergies 55. billion スペック Digital home appliances / optical devices / automotive Integrate technologies from materials to ultra-small packaging Expand sales of electronic components through single sales network Business Structure <Restructure Crystal Components Business> Shift R&D and production to Kinseki Integrate sales into Kyocera (Planned f or April 24) Create Technology/Markets Kinseki High-purity crystal technology High market share in optical products/broadcasting market Integration Kyocera Technology to miniaturize analog/digital TCXOs With respect to the information on this page, please refer to the accompanying note on page 1. 6

8 Consolidated Sales Forecast by Operating Segment (Unit: Billions of yen) 6 3 Net Sales Equipment Group 553. (Unit: Billions of yen) Operating Profit Operating Profit Ratio (Unit: %) /2 3/3 (Unit: Billions of yen) Net Sales /4 (Forecast) 3/2 99. Others (Unit: Billions of yen) /3 3/4 (Forecast) Operating Profit (Unit: %) /2 3/3 3/4 (Forecast) 3/2 3/3 3/4 (Forecast) Commencing in the f iscal y ear ended March 31, 23, basic R&D expenses of the Company itself, previously included within Others, hav e been charged to the respective operating segments. Accordingly, the Company has also reclassified previously published operating profit of such operating segments f or the f iscal y ear ended March 31, 22. With respect to forecasts and targets, please refer to the accompanying note on page 1. 7

9 Information Equipment: Product Development Strategy (1) 26cpm A3 Tandem Color 8/31cpm A3 1-drum Color Color MFPs 26ppm A3 Tandem Color 8/31ppm A3 1-drum Color 16ppm A4 Tandem Color 14ppm A4 A4 15cpm A4 18ppm A4 Color Printers 18cpm A4 16cpm A3 24ppm A4 A4 16/2cpm A3 A4 3/4/5cpm A3 45/55cpm A3 63cpm A3 75cpm A3 28/36ppm A3 25ppm A3 2ppm A3 Monochrome MFPs Monochrome Printers A3 This roadmap is subject to change. 8

10 Information Equipment: Product Development Strategy (2) Enhance Kyocera Mita Color Tandem Machines 16 ppm A4 tandem printer Utilize Kyocera s long-life cycle Amorphous Silicon Photoreceptor Drums Utilize Kyocera s Advanced Beam Array optical unit 26 ppm A3 tandem printer 26 cpm A3 tandem MFP LS-C516N LS-C826N KM-C263 Printer Features: World s smallest design* Low est TCO Includes cutting-edge technology for vibrant images Smallest available A4 tandem color printer (as of Nov. 7, 23) Printer Features: High-speed printing (color 26 ppm) Low est TCO Enhanced optional functions (book binding etc.) MFP Features: Long-life design, less maintenance required Can include printer/scanner/fax Enhanced optional functions (book binding etc.) With respect to the information on this page, please refer to the accompanying note on page 1. 9

11 Measures to Boost Profitability of CDMA Handset Business Pursue Group Synergies - Promote efficient utilization and optimization of R&D and production resources - Kyocera Group Major Aim Enhance KWC Profitability Enhance R&D System Standardize leading-edge mobile phone technologies in Japan Introduce Kyocera system and reform existing system Cost Reduction Establish low -cost production base in Mexico Production Control System Dispatch Kyocera (Japan) engineers to KWC Strengthen production efficiency and improve direct first run rate Quality Control System Strengthen quality control system through cooperation of Kyocera (Japan) and KWC Profit Control System Introduce Kyocera Management Control System Management control by model Introduce Kyocera s Amoeba Management System With respect to forecasts and targets, please refer to the accompanying note on page 1. 1

12 CDMA Handsets: Product Development Strategy 1H FY4 2H FY4 Kyocera Corp. (Japan) [A535K] 1x High-End Swiv el-sty le [A141K] 1x Practical [W1K] EV-DO Card PCMCIA Type [W11K] EV-DO Au Design Model [A552K] 1x High-End 1M Pixel Camera Swiv el-sty le Kyocera Wireless Corp. (KWC) <U.S.> [7135] Smart phone [M2] Module [Blade] [Phantom] [Rave] [Slider] Push To Talk High-end Kyocera Zhenhua Communication Equipment Co., Ltd. (KZC) <China> [KZ-82] 1x BREW [KZ85] Camera GPS [KZ83] GPS [KZ86] VGA Camera Slim Design [KZ87] VGA Camera Organic EL Display Other Key Strategies Implement product strategy by segment Optimize R&D and production processes Develop highly competitive products Bolster software development in India and establish an R&D Center in North America Business Opportunities Kyocera: Introduce new terminal for EV-DO serv ice by KDDI Introduce 1x high-end models: A552K, etc KWC: Timely provision of products based on market demand Release PTT (Push To Talk) capable handsets KZC: Expand sales at end-of-year and Chinese new year Introduce new models (KZ86/87) This roadmap is subject to change. With respect to forecasts and targets, please refer to the accompanying note on page 1. 11

13 A552K: Advanced 3rd generation CDMA 1x mobile handset 2.4 inch QVGA LCD Industry top-of-class Supports EZ Navi Walk Achieves real-time navigation (Electronic compass with heading up function) Equipped with Xenon flash 4 times more light intensity than conv entional LED types Incorporates both 1.1-megapixel CCD and 11-thousand pixel CMOS camera functions in a swivel-style handset Compatible with WAP2./BREW2.1 Includes QR Code (2 nd generation bar code) Reader Continuous talk time: Approx. 13 minutes (planned) Continuous stand-by time: Approx. 19 hours (planned) With respect to the information on this page, please refer to the accompanying note on page 1. 12

14 Digital Cameras: Product Development Strategy 1H FY4 2H FY4 CY /1 2 3 Standard Type Finecam L4v Finecam L3v Finecam L4 Finecam S5R Additional 4 models in 2H Flat Type Finecam L3 Finecam L3 Finecam SL3R Increase R&D staff/consider strategic alliances Key Strategy Product Differentiation through Core Technology Key device: image engine Improved response rate Decrease noise for sharper image Business Opportunity Concept in Digital Camera Market Quick response, high resolution features of still camera and simple and convenient features of DSC This roadmap is subject to change. With respect to the information on this page, please refer to the accompanying note on page 1. 13

15 KYOCERA Finecam S5R Equipped with new image engine Effective sensor resolution: 5-megapixel Optical zoom: 3 x, Digital zoom: 3.7 x Continuous AF (Continuous auto focus) Shutter lag time:.7 sec. Continuous shots: Approx. 3 frames/sec. (Can capture images continuously until memory full) Dimensions: (width) 92mm x (height) 57.5mm x (depth) 33mm (excluding protruding piece) Weight: Approx. 18g (excluding battery, recording media) 14

16 KYOCERA Finecam SL3R Equipped with new image engine Effective sensor resolution: 3.17-megapixel Optical zoom: 3 x, Digital zoom: 2 x Start-up: Less than 1 sec. Shutter lag time:.7 sec. Continuous shots: Approx. 3.5 frames/sec. (Can capture images continuously until memory full) Co. A: 3.3 frames/sec. (Up to 5 shots) Co. B: 3. frames/sec. (Up to 4 shots) Dimensions: (width) 1mm x (height) 62.5mm x (depth) 15mm (excluding protruding piece) Weight: Approx. 125g (excluding battery, recording media) 15

17 Kyocera Corporation