FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October 2007
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):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-
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/ AKIHIKO TOYOTANI |
Akihiko Toyotani |
General Manager of |
Finance Division |
Date: October 30, 2007
Information furnished on this form :
EXHIBITS
Consolidated Results of Kyocera Corporation and its Subsidiaries
for the Six Months Ended September 30, 2007
The consolidated financial statements are in conformity with accounting principles generally accepted in the United States of America.
Scheduled submission date for the Semiannual Report : December 12, 2007
Payment date of interim dividends : December 5, 2007
1. Results for the six months ended September 30, 2007 :
(1) Consolidated results of operations :
Japanese yen | |||||||||||
Six months ended September 30, | Year ended March 31, | ||||||||||
2006 | 2007 | 2007 | |||||||||
Net sales |
¥ | 615,390 million | ¥ | 636,560 million | ¥ | 1,283,897 million | |||||
% change from the previous period |
13.5 | % | 3.4 | % | | ||||||
Profit from operations |
63,128 million | 67,823 million | 135,102 million | ||||||||
% change from the previous period |
87.0 | % | 7.4 | % | | ||||||
Income from continuing operations before income taxes and minority interests |
72,385 million | 81,480 million | 156,540 million | ||||||||
% change from the previous period |
63.3 | % | 12.6 | % | | ||||||
Net income |
53,493 million | 50,620 million | 106,504 million | ||||||||
% change from the previous period |
120.9 | % | (5.4 | )% | | ||||||
Earnings per share : |
|||||||||||
Basic |
¥284.64 | ¥267.66 | ¥ 566.03 | ||||||||
Diluted |
284.14 | 267.06 | 564.79 |
Note :
Equity in earnings of affiliates and unconsolidated subsidiaries :
Six months ended September 30, 2007 |
¥ | 3,617 million | |
Six months ended September 30, 2006 |
¥ | 259 million | |
Year ended March 31, 2007 |
¥ | 2,621 million |
(2) Consolidated financial position :
Japanese yen | ||||||||||||
September 30, | March 31, | |||||||||||
2006 | 2007 | 2007 | ||||||||||
Total assets |
¥ | 1,951,702 million | ¥ | 2,107,097 million | ¥ | 2,130,464 million | ||||||
Stockholders equity |
1,373,567 million | 1,530,084 million | 1,514,560 million | |||||||||
Stockholders equity to total assets |
70.4 | % | 72.6 | % | 71.1 | % | ||||||
Stockholders equity per share |
¥7,306.02 | ¥8,077.76 | ¥8,028.45 |
- 1 -
(3) Consolidated cash flows :
Japanese yen | |||||||||
Six months ended September 30, | Year ended March 31, | ||||||||
2006 | 2007 | 2007 | |||||||
Cash flows from operating activities |
¥ | 47,923 million | ¥ | 79,598 million | ¥ | 149,644 million | |||
Cash flows from investing activities |
(74,084) million | (77,200) million | (151,703) million | ||||||
Cash flows from financing activities |
(13,079) million | (8,481) million | (20,645) million | ||||||
Cash and cash equivalents at end of period |
263,751 million | 274,508 million | 282,208 million |
2. Dividends :
Japanese yen | |||||||
Year ended March 31, 2007 |
Year ending March 31, | ||||||
2008 | |||||||
Interim dividends per share |
¥ | 50 | ¥ | 60 | |||
Year-end dividends per share |
60 | 60 | (forecasted) | ||||
Annual dividends per share |
¥ | 110 | ¥ | 120 | (forecasted) |
3. Consolidated financial forecast for the year ending March 31, 2008 :
Japanese yen | ||||
Year ending March 31, 2008 | ||||
Net sales |
¥ | 1,330,000 million | ||
% change from the previous year |
3.6 | % | ||
Profit from operations |
¥ | 151,000 million | ||
% change from the previous year |
11.8 | % | ||
Income from continuing operations before income taxes |
¥ | 166,000 million | ||
% change from the previous year |
6.0 | % | ||
Net income |
¥ | 103,000 million | ||
% change from the previous year |
(3.3 | )% |
Note :
Forecast of earnings per share : ¥543.40
Earnings per share amounts is computed based on Statement of Financial Accounting Standards No.128.
Forecast of earnings per share is computed based on the diluted weighted average number of shares outstanding during the six months ended September 30, 2007.
- 2 -
4. Others :
(1) Changes in scope of consolidation and application of the equity method :
Consolidation | Equity method | |||
Increase |
10 | 0 | ||
Decrease |
5 | 0 |
(2) Change in accounting policies :
There was a change in the accounting policy due to a new accounting standard.
Please refer to the accompanying BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS on page 32.
(3) Number of shares (common stock) :
Six months ended September 30, | Year ending March 31, | |||||
2006 | 2007 | 2007 | ||||
Number of shares issued |
191,309,290 | 191,309,290 | 191,309,290 | |||
Number of shares in treasury |
3,304,510 | 1,889,935 | 2,660,201 |
(Reference) Outline of Non-Consolidated Results for Kyocera Corporation
1. Results for the six months ended September 30, 2007
(1) Results of operations :
Japanese yen | |||||||||||
Six months ended September 30, | Year ended March 31, | ||||||||||
2006 | 2007 | 2007 | |||||||||
Net sales |
¥ | 259,738 million | ¥ | 264,117 million | ¥ | 531,557 million | |||||
% change from the previous period |
17.6 | % | 1.7 | % | | ||||||
Profit from operations |
¥ | 21,284 million | ¥ | 20,396 million | ¥ | 49,432 million | |||||
% change from the previous period |
71.9 | % | (4.2 | )% | | ||||||
Recurring profit |
¥ | 32,844 million | ¥ | 39,374 million | ¥ | 73,729 million | |||||
% change from the previous period |
22.1 | % | 19.9 | % | | ||||||
Net income |
¥ | 33,655 million | ¥ | 27,504 million | ¥ | 62,029 million | |||||
% change from the previous period |
5.6 | % | (18.3 | )% | | ||||||
Earnings per share : |
|||||||||||
Basic |
¥179.08 | ¥145.43 | ¥329.66 |
(2) Financial position :
Japanese yen | ||||||||||||
September 30, | March 31, | |||||||||||
2006 | 2007 | 2007 | ||||||||||
Total assets |
¥ | 1,471,385 million | ¥ | 1,563,909 million | ¥ | 1,611,891 million | ||||||
Net assets |
1,191,940 million | 1,278,089 million | 1,286,361 million | |||||||||
Net assets to total assets |
81.0 | % | 81.7 | % | 79.8 | % | ||||||
Net assets per share |
6,339.95 | 6,747.40 | 6,818.80 | |||||||||
Stockholders equity (Reference) |
1,191,940 million | 1,278,089 million | 1,286,361 million |
With regard to forecasts set forth above, please refer to the accompanying Forward Looking Statements on page 15.
- 3 -
Business Results
<Business Results for the Six Months Ended September 30, 2007>
(1) Economic Situation and Business Environment
Despite a lack of vitality in personal consumption, the Japanese economy expanded moderately during the six months ended September 30, 2007 (the first half) due to upward momentum in private capital investment amid growing exports and rising corporate earnings.
While the U.S. economy slowed down mildly due to the negative impact of issues related to housing loans for individuals with low creditworthiness, an increase in exports and brisk personal consumption led to growth in the European economy. The Chinese economy continued to expand on the back of increases in capital investment and exports.
The digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (Kyocera Group or Kyocera), was solid on the whole as demand for components for such equipment expanded compared with the six months ended September 30, 2006 (the previous first half).
(2) Consolidated Financial Results
Consolidated net sales for the first half amounted to ¥636,560 million, an increase of 3.4% compared with the previous first half, reflecting an increase in revenue in the Information Equipment Group and sales growth in the Components Business.
Consolidated profit from operations increased by 7.4% to ¥67,823 million and income from continuing operations before income taxes and minority interests increased by 12.6% to ¥81,480 million as compared with the previous first half.
The adequacy of the estimates, on which the depreciation method of property, plant and equipment are based, was reviewed, being triggered by the tax revision in Japan. Consequently, the depreciation method was changed and this led to increase in depreciation costs. Due mainly to the increase in depreciation costs, the Components Business recorded a decline in operating profit compared with the previous first half. The Equipment Business posted profit growth in the first half due to a substantial increase in operating profit in the Information Equipment Group.
- 4 -
Consolidated net income during the first half decreased by 5.4% to ¥50,620 million compared with the previous first half. This decrease was due to the absence of tax refunds accompanying the voidance of a portion of a tax assessment relating to transfer pricing adjustment and temporary gains including a gain on sale of shares of Kyocera Leasing Co.,Ltd. , which took place in the previous first half.
(Yen in millions, except for per share amounts and exchange rate) | |||||||||||
Six months ended September 30, | Increase (Decrease) |
||||||||||
2006 | 2007 | ||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||
Net sales |
615,390 | 100.0 | 636,560 | 100.0 | 3.4 | ||||||
Profit from operations |
63,128 | 10.3 | 67,823 | 10.7 | 7.4 | ||||||
Income from continuing operations before income taxes and minority interests |
72,385 | 11.8 | 81,480 | 12.8 | 12.6 | ||||||
Net income |
53,493 | 8.7 | 50,620 | 8.0 | (5.4 | ) | |||||
Diluted earnings per share |
284.14 | | 267.06 | | (6.0 | ) | |||||
Average US$ exchange rate |
115 | | 119 | | | ||||||
Average Euro exchange rate |
146 | | 162 | | |
(3) Implemented Management Measures and Significant Decisions during the First Half
In September 2007, AVX Corporation (AVX), a U.S. subsidiary, acquired American Technical Ceramics Corp., a U.S.-based manufacturer of electronic components, as a wholly-owned subsidiary, with the goal of strengthening its business in the area of advanced components business such as high frequency ceramic capacitors. This acquisition will enable AVX to expand its product line-up and its sales networks for high-value-added products.
- 5 -
(4) Consolidated Financial Results by Reporting Segment
Components Business :
Sales in the Components Business increased by 4.6% compared with the previous first half to ¥333,136 million, while operating profit decreased by 1.7% to ¥48,941 million. The operating profit ratio was 14.7%.
Consolidated results by reporting segment in the Components Business are as follows.
1) Fine Ceramic Parts Group
This reporting segment includes fine ceramic components and automotive components.
Sales in this reporting segment during the first half, especially of dielectric ceramic parts for base stations and sapphire substrates for LEDs increased compared with the previous first half, reflecting growth in the mobile phone market. Sales of piezo stacks for automobiles also increased. Operating profit decreased as compared with the previous first half, however, due to an increase in expenses such as depreciation costs.
2) Semiconductor Parts Group
This reporting segment includes ceramic packages and organic packages.
Despite a moderate increase in demand in the three months ended September 30, 2007 for ceramic packages, a core product in this reporting segment, for use in mobile phone handsets as compared with the three months ended June 30, 2007 (the first quarter). Sales decreased in this reporting segment compared with the high levels of those recorded in the previous first half. Operating profit decreased along with sales decline and increase in expenses such as depreciation costs.
3) Applied Ceramic Products Group
This reporting segment includes solar power generating systems for residential and industrial use, cutting tools, dental and medical implants, and jewelry and applied ceramic related products.
Sales and operating profit in this reporting segment increased significantly in the first half compared with the previous first half due to higher sales and operating profit recorded in the solar energy business, which is a core business in this reporting segment.
- 6 -
4) Electronic Device Group
This reporting segment includes electronic components such as various types of capacitors, crystal related products and connectors, and thin-film products such as thermal printheads and liquid crystal displays.
Performance in this reporting segment during the first half was solid in the electronic components business. Besides an increase in sales at AVX, sales of ceramic capacitors for flat-panel TVs and game consoles and of timing devices for mobile phone handsets increased. As a result, overall sales in this reporting segment for the first half increased compared with the previous first half. Operating profit decreased due to an increase in depreciation costs, despite improved profitability spurred by the increase in productivity.
Equipment Business :
Sales in the Equipment Business for the first half increased by 3.7% to ¥250,816 million, and operating profit increased by 32.1% to ¥19,116 million compared with the previous first half. The operating profit ratio was 7.6%.
Consolidated results by reporting segment in the Equipment Business are as follows.
1) Telecommunications Equipment Group
This reporting segment includes mobile phone handsets as well as PHS base stations and handsets.
Sales in this reporting segment for the first half decreased compared with the previous first half due to a decline in sales of mobile phone handsets in overseas markets. Operating loss was reduced compared with the previous first half due to a considerable improvement in profitability in the domestic mobile phone handset business and the PHS related business.
2) Information Equipment Group
This reporting segment includes ECOSYS brand printers, copiers and digital MFPs.
Sales and operating profit increased substantially in this reporting segment for the first half compared with the previous first half due to strong sales of printers and color digital MFPs in Europe in particular, coupled with the positive effects of the weak yen against the Euro.
- 7 -
Others :
This reporting segment includes various information and communications technology services, materials for electronic components and optical components.
Sales in this reporting segment for the first half decreased by 2.1% to ¥65,277 million compared with the previous first half due to a decline in sales of optical related business. Operating profit increased substantially by 39.1% to ¥3,964 million, however, due to improved profitability at Kyocera Communication Systems Co., Ltd. and reduced loss in the optical related business. The operating profit ratio was 6.1%.
- 8 -
Consolidated Sales by Reporting Segment
(Yen in millions) | |||||||||||||||
Six months ended September 30, | Increase |
||||||||||||||
2006 | 2007 | ||||||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||||||
Fine Ceramic Parts Group |
38,564 | 6.3 | 41,286 | 6.5 | 7.1 | ||||||||||
Semiconductor Parts Group |
75,843 | 12.3 | 73,545 | 11.5 | (3.0 | ) | |||||||||
Applied Ceramic Products Group |
64,132 | 10.4 | 69,743 | 11.0 | 8.7 | ||||||||||
Electronic Device Group |
139,984 | 22.7 | 148,562 | 23.3 | 6.1 | ||||||||||
Total Components Business |
318,523 | 51.7 | 333,136 | 52.3 | 4.6 | ||||||||||
Telecommunications Equipment Group |
117,181 | 19.0 | 113,907 | 17.9 | (2.8 | ) | |||||||||
Information Equipment Group |
124,619 | 20.3 | 136,909 | 21.5 | 9.9 | ||||||||||
Total Equipment Business |
241,800 | 39.3 | 250,816 | 39.4 | 3.7 | ||||||||||
Others |
66,660 | 10.9 | 65,277 | 10.3 | (2.1 | ) | |||||||||
Adjustments and eliminations |
(11,593 | ) | (1.9 | ) | (12,669 | ) | (2.0 | ) | | ||||||
Net sales |
615,390 | 100.0 | 636,560 | 100.0 | 3.4 | ||||||||||
Consolidated Operating Profit by Reporting Segment
(Yen in millions) | |||||||||||||
Six months ended September 30, | Increae (Decrease) % |
||||||||||||
2006 | 2007 | ||||||||||||
Amount | % of segment sales |
Amount | % of segment sales |
||||||||||
Fine Ceramic Parts Group |
7,373 | 19.1 | 6,195 | 15.0 | (16.0 | ) | |||||||
Semiconductor Parts Group |
11,887 | 15.7 | 8,367 | 11.4 | (29.6 | ) | |||||||
Applied Ceramic Products Group |
8,966 | 14.0 | 13,434 | 19.3 | 49.8 | ||||||||
Electronic Device Group |
21,573 | 15.4 | 20,945 | 14.1 | (2.9 | ) | |||||||
Total Components Business |
49,799 | 15.6 | 48,941 | 14.7 | (1.7 | ) | |||||||
Telecommunications Equipment Group |
(1,016 | ) | | (103 | ) | | | ||||||
Information Equipment Group |
15,491 | 12.4 | 19,219 | 14.0 | 24.1 | ||||||||
Total Equipment Business |
14,475 | 6.0 | 19,116 | 7.6 | 32.1 | ||||||||
Others |
2,849 | 4.3 | 3,964 | 6.1 | 39.1 | ||||||||
Operating profit |
67,123 | 10.9 | 72,021 | 11.3 | 7.3 | ||||||||
Corporate |
5,152 | | 5,893 | | 14.4 | ||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
259 | | 3,617 | | | ||||||||
Adjustments and eliminations |
(149 | ) | | (51 | ) | | | ||||||
Income from continuing operations before income taxes and minority interests |
72,385 | 11.8 | 81,480 | 12.8 | 12.6 | ||||||||
Note 1. From April 1, 2007, the Optical Equipment Group, previously a separate reporting segment, has been reclassified into Others. Accordingly, sales and operating profit for the previous first half have been retroactively reclassified.
Note 2. For the reasons set forth Note 1 above, net sales of Others in the previous first half increased by ¥5,810 million and Adjustments and eliminations decreased by ¥(80) million compared with those previously presented. Also, operating profit of Others in the previous first half decreased by ¥899 million compared with those previously announced.
- 9 -
(5) Consolidated Sales by Geographic Area
(Yen in millions) | |||||||||||
Six months ended September 30, | Increase (Decrease) |
||||||||||
2006 | 2007 | ||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||
Japan |
236,735 | 38.5 | 241,811 | 38.0 | 2.1 | ||||||
United States of America |
130,265 | 21.2 | 126,703 | 19.9 | (2.7 | ) | |||||
Asia |
107,111 | 17.4 | 118,594 | 18.6 | 10.7 | ||||||
Europe |
97,464 | 15.8 | 112,606 | 17.7 | 15.5 | ||||||
Others |
43,815 | 7.1 | 36,846 | 5.8 | (15.9 | ) | |||||
Net sales |
615,390 | 100.0 | 636,560 | 100.0 | 3.4 | ||||||
1) Japan
Although sales in the Electronic Device Group decreased, sales in the Fine Ceramic Parts Group and the Semiconductor Parts Group increased. Therefore, sales in domestic market as a whole slightly increased as compared with the previous first half.
2) United States of America
Due to decrease in sales in the Electronic Device Group and the Semiconductor Parts Group, revenue decreased compared with the previous first half.
3) Asia
Sales of products in the Electronic Device Group were favorable and the sales also increased in the Information Equipment Group. Therefore, revenue increased compared with the previous first half.
4) Europe
Sales in the Information Equipment Group, the solar energy business in the Applied Ceramic Products Group and the Electronic Device Group increased. Hence, revenue increased compared with the previous first half.
5) Others
Mainly due to decrease in sales for Latin America in the Telecommunication Equipment Group, revenue in this area substantially decreased.
- 10 -
(6) Capital Expenditures and Depreciation
(Yen in millions) | |||||||||||
Six months ended September 30, | Increase (%) |
||||||||||
2006 | 2007 | ||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||
Capital expenditures |
37,239 | 6.1 | 32,592 | 5.1 | (12.5 | ) | |||||
Depreciation |
33,682 | 5.5 | 37,291 | 5.9 | 10.7 |
During the first half, Kyocera made capital expenditures particularly to increase production capacity in the solar energy business in the Applied Ceramic Products Group and the Electronic Device Group in response to burgeoning demand. Capital expenditures were made for constructing new logistics center in the Information Equipment Group and the Semiconductor Parts Group and so on. Also, capital expenditures were made to enhance production capacity in the previous first half. As a result, overall capital expenditures during the first half decreased compared with the previous first half. Depreciation costs increased due to a change in accounting estimates for depreciation method.
- 11 -
<Forecast for the year ending March 31, 2008>
With regard to the economy and market environment for the six months ending March 31, 2008 (the second half), despite stagnation in the U.S. economy due to the negative impact on the issues related to housing loans for consumers with low creditworthiness is concerned, the digital consumer equipment market is expected to be remained healthy. Kyocera therefore projects steady demand for these equipment and components used in these products. Amid such a market environment, Kyocera will strive to continue its first half efforts to expand profitability and achieve the financial forecasts for the year ending March 31, 2008 (fiscal 2008) through vigorous product introductions in the second half.
There is no change in the overall consolidated financial forecast for fiscal 2008, which were announced on April 26, 2007.
Consolidated Forecasts for fiscal 2008 (Announced on April 26, 2007)
(Yen in millions, except for per share amounts and exchange rates) | |||||||||||
Fiscal 2007 Results | Fiscal 2008 Forecasts | Increase (%) |
|||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||
Net sales |
1,283,897 | 100.0 | 1,330,000 | 100.0 | 3.6 | ||||||
Profit from operations |
135,102 | 10.5 | 151,000 | 11.4 | 11.8 | ||||||
Income from continuing operations before income taxes and minority interests |
156,540 | 12.2 | 166,000 | 12.5 | 6.0 | ||||||
Net income |
106,504 | 8.3 | 103,000 | 7.7 | (3.3 | ) | |||||
Diluted earnings per share |
564.79 | | 543.40 | | (3.8 | ) | |||||
Average US$ exchange rate |
117 | | 110 | | | ||||||
Average Euro exchange rate |
150 | | 150 | | |
In the meantime, there is a change in a forecast of capital expenditure for fiscal 2008. The forecast of capital expenditures is revised to ¥81,000 million from the previous forecast (Announced on April 26, 2007) of ¥86,000 million.
- 12 -
The following revisions have been made to financial forecasts by reporting segment for fiscal 2008 in light of factors such as results in each business through the end of the first half, the projected market environment and the impact of depreciation costs in the second half.
Consolidated Sales by Reporting Segment (Announced on October 30, 2007)
(Yen in millions) | |||||||||||||||||||||
Forecasts for Fiscal 2008 announced on | Increase (%) |
||||||||||||||||||||
Fiscal 2007 Results | April 26, 2007 | October 30, 2007 | |||||||||||||||||||
Amount | % of net sales |
Amount | % of net sales |
Amount | % of net sales |
||||||||||||||||
Fine Ceramic Parts Group |
81,326 | 6.3 | 85,000 | 6.4 | 85,000 | 6.4 | 4.5 | ||||||||||||||
Semiconductor Parts Group |
152,292 | 11.9 | 157,000 | 11.8 | 154,000 | 11.6 | 1.1 | ||||||||||||||
Applied Ceramic Products Group |
131,103 | 10.2 | 144,000 | 10.8 | 152,000 | 11.4 | 15.9 | ||||||||||||||
Electronic Device Group |
286,156 | 22.3 | 290,000 | 21.8 | 304,000 | 22.9 | 6.2 | ||||||||||||||
Total Components Business |
650,877 | 50.7 | 676,000 | 50.8 | 695,000 | 52.3 | 6.8 | ||||||||||||||
Telecommunications Equipment Group |
251,183 | 19.6 | 265,000 | 19.9 | 228,000 | 17.1 | (9.2 | ) | |||||||||||||
Information Equipment Group |
268,781 | 20.9 | 274,000 | 20.6 | 284,000 | 21.4 | 5.7 | ||||||||||||||
Total Equipment Business |
519,964 | 40.5 | 539,000 | 40.5 | 512,000 | 38.5 | (1.5 | ) | |||||||||||||
Others |
137,235 | 10.7 | 140,000 | 10.5 | 142,000 | 10.7 | 3.5 | ||||||||||||||
Adjustments and eliminations |
(24,179 | ) | (1.9 | ) | (25,000 | ) | (1.8 | ) | (19,000 | ) | (1.5 | ) | | ||||||||
Net sales |
1,283,897 | 100.0 | 1,330,000 | 100.0 | 1,330,000 | 100.0 | 3.6 | ||||||||||||||
Note 3. From April 1, 2007, the Optical Equipment Group, previously a separate reporting segment, has been reclassified into Others. Accordingly, net sales for the year ended March 31, 2007 (fiscal 2007) have been retroactively reclassified.
Note 4. For the reasons Note 3. above, net sales of Others in fiscal 2007 increased by ¥11,579 million and Adjustments and eliminations decreased by ¥(125) million compared with those previously announced.
- 13 -
Consolidated Operating Profit by Reporting Segment
(Yen in millions) | |||||||||||||||
Forecast for Fiscal 2008 Forecasts announced on | Increase (%) |
||||||||||||||
Fiscal 2007 Results | April 26, 2007 | October 30, 2007 | |||||||||||||
Amount | % of segment sales |
Amount | % of segment sales |
Amount | % of segment sales |
||||||||||
Fine Ceramic Parts Group |
15,677 | 19.3 | 16,000 | 18.8 | 13,500 | 15.9 | (13.9 | ) | |||||||
Semiconductor Parts Group |
22,210 | 14.6 | 24,000 | 15.3 | 21,000 | 13.6 | (5.4 | ) | |||||||
Applied Ceramic Products Group |
22,334 | 17.0 | 27,000 | 18.8 | 29,000 | 19.1 | 29.8 | ||||||||
Electronic Device Group |
44,487 | 15.5 | 46,000 | 15.9 | 44,500 | 14.6 | 0.0 | ||||||||
Total Components Business |
104,708 | 16.1 | 113,000 | 16.7 | 108,000 | 15.5 | 3.1 | ||||||||
Telecommunications Equipment Group |
291 | 0.1 | 6,000 | 2.3 | 2,000 | 0.9 | 587.3 | ||||||||
Information Equipment Group |
33,970 | 12.6 | 35,000 | 12.8 | 39,000 | 13.7 | 14.8 | ||||||||
Total Equipment Business |
34,261 | 6.6 | 41,000 | 7.6 | 41,000 | 8.0 | 19.7 | ||||||||
Others |
6,881 | 5.0 | 7,000 | 5.0 | 6,000 | 4.2 | (12.8 | ) | |||||||
Operating profit |
145,850 | 11.4 | 161,000 | 12.1 | 155,000 | 11.7 | 6.3 | ||||||||
Corporate and others |
10,690 | | 5,000 | | 11,000 | | 2.9 | ||||||||
Income from continuing operations before income taxes and minority interests |
156,540 | 12.2 | 166,000 | 12.5 | 166,000 | 12.5 | 6.0 | ||||||||
Note 5. For the reasons set forth Note 3. on the previous page, operating profit of Others in fiscal 2007 decreased by ¥1,895 million compared with those previously announced.
Note 6. The average U.S. dollar and Euro exchange rates set forth above are the forecast average from October 1, 2007 to March 31, 2008.
Note 7. Forecast of diluted earnings per share for fiscal 2008 set forth above is computed based on the diluted weighted average number of shares outstanding during the first half.
- 14 -
Note 8. 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, particularly including China; unexpected changes in economic, political and legal conditions in China; our ability to develop, launch and produce innovative products, including meeting quality and delivery standards, and our ability to otherwise meet the advancing technical requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components; manufacturing delays or defects resulting from outsourcing or internal manufacturing processes which may adversely affect our production yields and operating results; factors that may affect our exports, including a strong yen, political and economic instability, difficulties in collection of accounts receivable, decrease in cost competitiveness of our products, increases in shipping and handling costs, difficulty in staffing and managing international operations, and inadequate protection of our intellectual property; changes in exchange rates, particularly between the yen and the U.S. dollar and euro, respectively, in which we make significant sales; inability to secure skilled employees, particularly engineering and technical personnel; insufficient protection of our trade secrets and patents; holding licenses to continue to manufacture and sell certain of its products, the expense of which may adversely affects its results of operations; laws and regulations relating to the taxation, and to manufacturing and trade; events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases; the occurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business facilities are located; and fluctuations in the value of, and impairment losses on, securities and other assets held by us, and changes in accounting principles. 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.
- 15 -
<Cash flows>
Cash and cash equivalent at September 30, 2007 decreased by ¥7,700 million to ¥274,508 million compared with at March 31, 2007.
(Yen in millions) | ||||||
Six Months Ended September 30, | ||||||
2006 | 2007 | |||||
Cash flow from operating activities |
47,923 | 79,598 | ||||
Cash flow from investing activities |
(74,084 | ) | (77,200 | ) | ||
Cash flow from financing activities |
(13,079 | ) | (8,481 | ) | ||
Effect of exchange rate changes on cash and cash equivalent |
2,182 | (1,617 | ) | |||
Net decrease in cash and cash equivalent |
(37,058 | ) | (7,700 | ) | ||
Cash and cash equivalent at beginning of period |
300,809 | 282,208 | ||||
Cash and cash equivalent at end of period |
263,751 | 274,508 |
(1) Cash flow from operating activities
Net cash provided by operating activities in the first half increased by ¥ 31,675 million to ¥ 79,598 million from ¥47,923 million in the previous first half. Although net income decreased, and payables and accrued income taxes that increased in the previous first half decreased in the first half, receivables and inventories that increased in the previous first half decreased in the first half. As a result, cash inflows in the operating activities in the first half increased, compared with the previous first half.
(2) Cash flow from investing activities
Net cash used in investing activities in the first half increased by ¥3,116 million to ¥77,200 million from ¥74,084 million in the previous first half. This was due mainly to increases in cash outflows by acquisitions of business and acquisitions of time deposits that exceeded an increase in cash inflow provided by sales and maturities of securities.
(3) Cash flow from financing activities
Net cash used in financing activities in the first half decreased by ¥4,598 million to ¥8,481 million from ¥13,079 million in the previous first half. This was due mainly to a decrease in cash outflow by payments of long-term debt and an increase in cash inflow by reissuance of treasury stock.
<Cash Flow Indexes>
Years ended March 31, | Six months ended September 30, 2007 |
||||||||||||||
2004 | 2005 | 2006 | 2007 | ||||||||||||
Stockholders equity to total assets |
64.1 | % | 67.3 | % | 66.7 | % | 71.1 | % | 72.6 | % | |||||
Market capitalization to total assets |
91.3 | % | 82.2 | % | 101.3 | % | 98.4 | % | 96.8 | % | |||||
Interest bearing debts per operating cash flows (years) |
3.2 | 1.0 | 0.8 | 0.2 | 0.2 | ||||||||||
Operating cash flows per interest paid (ratio) |
20.6 | 62.4 | 88.5 | 93.4 | 108.0 |
All indexes are computed on a consolidated basis.
Interest bearing debts represent all debts with interest expense included in consolidated balance sheets.
- 16 -
<Basic Profit Distribution Policy and Dividends for fiscal 2008>
(1) Basic Profit Distribution Policy
Kyocera believes that the best way to increase corporate value and meet shareholders expectations is to improve consolidated performance into the future. Kyocera therefore strongly takes into consideration the linkage between dividend amounts and consolidated performance and has implemented a dividend policy aiming for a consolidated dividend ratio of approximately 20% to 25%.
In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors that include the amount of capital expenditures necessary for medium to long-term growth.
In order to ensure a sound financial basis, Kyocera also sets aside other general reserve in preparation for the creation of new businesses, cultivation of new markets, development of new technologies and acquisition of outside management resources needed to achieve sustainable corporate growth.
(2) Dividends
Based on performance in the first half and pursuant to the aforementioned policy, Kyocera will distribute an interim dividend of 60 yen per share, an increase of 10 yen compared with the previous first half. Kyocera plans to distribute a total annual dividend of 120 yen per share, an increase of 10 yen over the initial projection of 110 yen per share, announced on April 26, 2007.
<Business Risks>
There have been no significant changes in the information relating to business risk disclosed in the Form 20-F for the year ended March 31, 2007, and accordingly details thereof have been omitted here.
The Form 20-F is available at the URLs below:
http://www.kyocera.co.jp/ir/pdf/fy07.pdf
- 17 -
KYOCERA GROUP
Kyocera group consists of Kyocera Corporation, 174 subsidiaries and 10 affiliates.
(Chart of the group companies)
- 18 -
Management Policies
(1) Basic management policy
(2) Target ratio of income before income taxes
(3) Medium term management strategy
(4) Challenges
There have been no significant changes in the information relating to key management items disclosed in the financial results for fiscal 2007 (announced on April 26, 2007), and accordingly details thereof have been omitted here.
The financial results are available at the URLs below.
Kyocera homepage:
http://global.kyocera.com/ir/pdf/tanshin070426e.pdf
Tokyo Stock Exchange homepage (listed company information search page):
http://www.tse.or.jp/tseHpFront/HPLCDS0101E.do?method=init&callJorEFlg=1
- 19 -
CONSOLIDATED BALANCE SHEETS
Yen in millions | ||||||||||||||||||
September 30, | March31, | |||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||||
Cash and cash equivalents |
¥ | 263,751 | ¥ | 274,508 | ¥ | 282,208 | ||||||||||||
Short-term investments |
128,747 | 287,650 | 213,495 | |||||||||||||||
Trade notes receivable |
25,181 | 21,567 | 25,033 | |||||||||||||||
Trade accounts receivable |
228,198 | 232,381 | 236,380 | |||||||||||||||
Less allowances for doubtful accounts and sales returns |
(7,384 | ) | (5,914 | ) | (5,960 | ) | ||||||||||||
Inventories |
220,879 | 208,933 | 209,188 | |||||||||||||||
Deferred income taxes |
45,609 | 41,141 | 45,390 | |||||||||||||||
Other current assets |
46,151 | 51,940 | 40,757 | |||||||||||||||
Total current assets |
951,132 | 48.7 | 1,112,206 | 52.8 | 1,046,491 | 49.1 | ||||||||||||
Non-current assets : |
||||||||||||||||||
Investments and advances : |
||||||||||||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
7,499 | 14,606 | 10,093 | |||||||||||||||
Securities and other investments |
622,344 | 579,062 | 690,568 | |||||||||||||||
Total investments and advances |
629,843 | 32.3 | 593,668 | 28.2 | 700,661 | 32.9 | ||||||||||||
Property, plant and equipment, at cost : |
||||||||||||||||||
Land |
56,969 | 57,154 | 56,806 | |||||||||||||||
Buildings |
253,643 | 264,325 | 261,998 | |||||||||||||||
Machinery and equipment |
717,718 | 746,552 | 729,636 | |||||||||||||||
Construction in progress |
11,817 | 12,800 | 7,362 | |||||||||||||||
Less accumulated depreciation |
(752,878 | ) | (800,535 | ) | (774,896 | ) | ||||||||||||
Total property, plant and equipment, at cost |
287,269 | 14.7 | 280,296 | 13.3 | 280,906 | 13.2 | ||||||||||||
Goodwill |
31,615 | 1.6 | 42,022 | 2.0 | 32,894 | 1.5 | ||||||||||||
Intangible assets |
29,516 | 1.5 | 33,633 | 1.6 | 24,657 | 1.2 | ||||||||||||
Other assets |
22,327 | 1.2 | 45,272 | 2.1 | 44,855 | 2.1 | ||||||||||||
Total non-current assets |
1,000,570 | 51.3 | 994,891 | 47.2 | 1,083,973 | 50.9 | ||||||||||||
Total assets |
¥ | 1,951,702 | 100.0 | ¥ | 2,107,097 | 100.0 | ¥ | 2,130,464 | 100.0 | |||||||||
- 20 -
Yen in millions | ||||||||||||||||||
September 30, | March 31, | |||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||
Current liabilities : |
||||||||||||||||||
Short-term borrowings |
¥ | 12,929 | ¥ | 17,351 | ¥ | 15,250 | ||||||||||||
Current portion of long-term debt |
6,643 | 3,268 | 5,853 | |||||||||||||||
Trade notes and accounts payable |
111,059 | 94,232 | 100,295 | |||||||||||||||
Other notes and accounts payable |
52,365 | 49,025 | 49,134 | |||||||||||||||
Accrued payroll and bonus |
39,417 | 42,774 | 41,680 | |||||||||||||||
Accrued income taxes |
31,343 | 24,822 | 36,475 | |||||||||||||||
Other accrued liabilities |
36,230 | 34,405 | 33,391 | |||||||||||||||
Other current liabilities |
24,217 | 24,629 | 24,110 | |||||||||||||||
Total current liabilities |
314,203 | 16.1 | 290,506 | 13.8 | 306,188 | 14.4 | ||||||||||||
Non-current liabilities : |
||||||||||||||||||
Long-term debt |
9,243 | 6,269 | 7,283 | |||||||||||||||
Accrued pension and severance liabilities |
23,541 | 16,115 | 16,297 | |||||||||||||||
Deferred income taxes |
149,097 | 181,108 | 206,858 | |||||||||||||||
Other non-current liabilities |
12,992 | 13,461 | 12,355 | |||||||||||||||
Total non-current liabilities |
194,873 | 10.0 | 216,953 | 10.3 | 242,793 | 11.4 | ||||||||||||
Total liabilities |
509,076 | 26.1 | 507,459 | 24.1 | 548,981 | 25.8 | ||||||||||||
Minority interests in consolidated subsidiaries |
69,059 | 3.5 | 69,554 | 3.3 | 66,923 | 3.1 | ||||||||||||
Stockholders equity : |
||||||||||||||||||
Common stock |
115,703 | 115,703 | 115,703 | |||||||||||||||
Additional paid-in capital |
162,080 | 162,735 | 162,363 | |||||||||||||||
Retained earnings |
1,011,682 | 1,098,562 | 1,055,293 | |||||||||||||||
Accumulated other comprehensive income |
111,211 | 168,652 | 203,056 | |||||||||||||||
Treasury stock, at cost |
(27,109 | ) | (15,568 | ) | (21,855 | ) | ||||||||||||
Total stockholders equity |
1,373,567 | 70.4 | 1,530,084 | 72.6 | 1,514,560 | 71.1 | ||||||||||||
Total liabilities, minority interests and stockholders equity |
¥ | 1,951,702 | 100.0 | ¥ | 2,107,097 | 100.0 | ¥ | 2,130,464 | 100.0 | |||||||||
Note : Accumulated other comprehensive income is as follows.
| ||||||||||||||||||
Yen in millions | ||||||||||||||||||
September 30, | March 31, 2007 | |||||||||||||||||
2006 | 2007 | |||||||||||||||||
Net unrealized gains on securities |
¥ | 114,808 | ¥ | 153,081 | ¥ | 184,670 | ||||||||||||
Net unrealized (losses) gains on derivative financial instruments |
¥ | (58 | ) | ¥ | 68 | ¥ | 63 | |||||||||||
Minimum pension liability adjustments |
¥ | (2,057 | ) | | | |||||||||||||
Pension liability adjustments |
| ¥ | 14,664 | ¥ | 15,419 | |||||||||||||
Foreign currency translation adjustments |
¥ | (1,482 | ) | ¥ | 839 | ¥ | 2,904 |
- 21 -
CONSOLIDATED STATEMENTS OF INCOME
Yen in millions, except for per share amounts | ||||||||||||||||||||||||
Six months ended September 30, | Increase (Decrease) % |
Year ended March 31, |
||||||||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Net sales |
¥ | 615,390 | 100.0 | ¥ | 636,560 | 100.0 | 3.4 | ¥ | 1,283,897 | 100.0 | ||||||||||||||
Cost of sales |
429,681 | 69.8 | 441,327 | 69.3 | 2.7 | 900,470 | 70.1 | |||||||||||||||||
Gross profit |
185,709 | 30.2 | 195,233 | 30.7 | 5.1 | 383,427 | 29.9 | |||||||||||||||||
Selling, general and administrative expenses |
122,581 | 19.9 | 127,410 | 20.0 | 3.9 | 248,325 | 19.4 | |||||||||||||||||
Profit from operations |
63,128 | 10.3 | 67,823 | 10.7 | 7.4 | 135,102 | 10.5 | |||||||||||||||||
Other income (expenses) : |
||||||||||||||||||||||||
Interest and dividend income |
6,790 | 1.1 | 9,742 | 1.5 | 43.5 | 15,472 | 1.2 | |||||||||||||||||
Interest expense |
(782 | ) | (0.1 | ) | (859 | ) | (0.1 | ) | | (1,647 | ) | (0.1 | ) | |||||||||||
Foreign currency transaction gains (losses), net |
273 | 0.1 | 412 | 0.0 | 50.9 | (65 | ) | (0.0 | ) | |||||||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
259 | 0.0 | 3,617 | 0.6 | | 2,621 | 0.2 | |||||||||||||||||
Gains on sale of securities, net |
3,252 | 0.5 | 228 | 0.0 | (93.0 | ) | 3,819 | 0.3 | ||||||||||||||||
Other, net |
(535 | ) | (0.1 | ) | 517 | 0.1 | | 1,238 | 0.1 | |||||||||||||||
Total other income |
9,257 | 1.5 | 13,657 | 2.1 | 47.5 | 21,438 | 1.7 | |||||||||||||||||
Income from continuing operations before income taxes and minority interests |
72,385 | 11.8 | 81,480 | 12.8 | 12.6 | 156,540 | 12.2 | |||||||||||||||||
Income taxes |
20,954 | 3.4 | 27,164 | 4.3 | 29.6 | 48,887 | 3.8 | |||||||||||||||||
Income from continuing operations before minority interests |
51,431 | 8.4 | 54,316 | 8.5 | 5.6 | 107,653 | 8.4 | |||||||||||||||||
Minority interests |
(3,113 | ) | (0.5 | ) | (3,696 | ) | (0.5 | ) | | (6,324 | ) | (0.5 | ) | |||||||||||
Income from continuing operations |
48,318 | 7.9 | 50,620 | 8.0 | 4.8 | 101,329 | 7.9 | |||||||||||||||||
Income from discontinued operations |
5,175 | 0.8 | | | | 5,175 | 0.4 | |||||||||||||||||
Net income |
¥ | 53,493 | 8.7 | ¥ | 50,620 | 8.0 | (5.4 | ) | ¥ | 106,504 | 8.3 | |||||||||||||
Earnings per share: |
||||||||||||||||||||||||
Income from continuing operations: |
||||||||||||||||||||||||
Basic |
¥ | 257.10 | ¥ | 267.66 | ¥ | 538.52 | ||||||||||||||||||
Diluted |
¥ | 256.65 | ¥ | 267.06 | ¥ | 537.35 | ||||||||||||||||||
Income from discontinued operations: |
||||||||||||||||||||||||
Basic |
¥ | 27.54 | | ¥ | 27.51 | |||||||||||||||||||
Diluted |
¥ | 27.49 | | ¥ | 27.44 | |||||||||||||||||||
Net income: |
||||||||||||||||||||||||
Basic |
¥ | 284.64 | ¥ | 267.66 | ¥ | 566.03 | ||||||||||||||||||
Diluted |
¥ | 284.14 | ¥ | 267.06 | ¥ | 564.79 | ||||||||||||||||||
Weighted average number of shares of common stock outstanding (shares in thousands): |
||||||||||||||||||||||||
Basic |
187,932 | 189,119 | 188,160 | |||||||||||||||||||||
Diluted |
188,266 | 189,548 | 188,573 |
- 22 -
Notes :
1. | Kyocera applies the Statement of Financial Accounting Standards Board (SFAS) No.130, Financial Reporting of Comprehensive Income. Based on this standard, comprehensive income for the six months ended September 30, 2006 and 2007 were an increase of ¥91,757 million and an increase of ¥16,216 million, respectively. | |
2. | Earnings per share amounts were computed based on SFAS No.128, Earnings per Share. Under SFAS No.128, basic earnings per share was computed based on the weighted average number of shares of common stock outstanding during each period and diluted earnings per share assumed the dilution that could occur if securities or other contracts to issue common stock were converted into common stock, exercised or resulted in the issuance of common stock. | |
3. | Against the Correction Disposition with regard to transfer pricing taxation, which was rendered by the Osaka Regional Taxation Bureau in March 2005, Kyocera filed the Request for Reinvestigation in May 2005. Kyocera then received the Decision on the Request for Reinvestigation in September 2006. Based on the Decision, ¥(4,356) million is included in income taxes shown above, as refunds for the previous years. | |
4. | Kyocera sold its entire shares in Kyocera Leasing Co., Ltd., a subsidiary engaged in financial services, as a result, business results and profit on sales, ¥5,175 million, for the six months ended September 30, 2006 and the year ended March 31, 2007, have been recorded as income from discontinued operations in conformity with Statement of Financial Accounting Standard (SFAS) No.144, Accounting for the impairment or disposal of Long-Lived Assets. |
- 23 -
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
Yen in millions and shares in thousands | |||||||||||||||||||||||
(Number of shares of common stock) |
Common stock |
Additional capital |
Retained earnings |
Accumulated other |
Treasury stock |
Comprehensive income |
|||||||||||||||||
Balance, March 31, 2006 (187,755) |
¥ | 115,703 | ¥ | 161,994 | ¥ | 967,576 | ¥ | 72,947 | ¥ | (29,143 | ) | ||||||||||||
Net income for the year |
106,504 | ¥ | 106,504 | ||||||||||||||||||||
Other comprehensive income |
112,551 | 112,551 | |||||||||||||||||||||
Total comprehensive income for the year |
¥ | 219,055 | |||||||||||||||||||||
Adjustment for initially applying SAFS No. 158, net of taxes |
17,558 | ||||||||||||||||||||||
Cash dividends |
(18,787 | ) | |||||||||||||||||||||
Purchase of treasury stock (24) |
(251 | ) | |||||||||||||||||||||
Reissuance of treasury stock (918) |
127 | 7,539 | |||||||||||||||||||||
Stock option plan of subsidiaries |
242 | ||||||||||||||||||||||
Balance, March 31, 2007 (188,649) |
115,703 | 162,363 | 1,055,293 | 203,056 | (21,855 | ) | |||||||||||||||||
Cumulative effect of applying FIN 48 to opening balance (Note) |
3,968 | ||||||||||||||||||||||
Net income for the period |
50,620 | ¥ | 50,620 | ||||||||||||||||||||
Other comprehensive income |
(34,404 | ) | (34,404 | ) | |||||||||||||||||||
Total comprehensive income for the period |
¥ | 16,216 | |||||||||||||||||||||
Cash dividends |
(11,319 | ) | |||||||||||||||||||||
Purchase of treasury stock (13) |
(156 | ) | |||||||||||||||||||||
Reissuance of treasury stock (783) |
245 | 6,443 | |||||||||||||||||||||
Stock option plan of subsidiaries |
127 | ||||||||||||||||||||||
Balance, September 30, 2007 (189,419) |
¥ | 115,703 | ¥ | 162,735 | ¥ | 1,098,562 | ¥ | 168,652 | ¥ | (15,568 | ) | ||||||||||||
Yen in millions and shares in thousands | |||||||||||||||||||||||
(Number of shares of common stock) |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income |
Treasury stock |
Comprehensive income |
|||||||||||||||||
Balance, March 31, 2006 (187,755) |
¥ | 115,703 | ¥ | 161,994 | ¥ | 967,576 | ¥ | 72,947 | ¥ | (29,143 | ) | ||||||||||||
Net income for the period |
53,493 | ¥ | 53,493 | ||||||||||||||||||||
Other comprehensive income |
38,264 | 38,264 | |||||||||||||||||||||
Total comprehensive income for the period |
¥ | 91,757 | |||||||||||||||||||||
Cash dividends |
(9,387 | ) | |||||||||||||||||||||
Purchase of treasury stock (11) |
(104 | ) | |||||||||||||||||||||
Reissuance of treasury stock (261) |
(23 | ) | 2,138 | ||||||||||||||||||||
Stock option plan of subsidiaries |
109 | ||||||||||||||||||||||
Balance, September 30, 2006 (188,005) |
¥ | 115,703 | ¥ | 162,080 | ¥ | 1,011,682 | ¥ | 111,211 | ¥ | (27,109 | ) | ||||||||||||
Note:
FIN 48 : Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109
Please refer to page 32 (6) Accounting change.
- 24 -
CONSOLIDATED STATEMENTS OF CASH FLOWS
Yen in millions | ||||||||||||
Six months ended September 30, |
Year ended |
|||||||||||
2006 | 2007 | 2007 | ||||||||||
Cash flows from operating activities : |
||||||||||||
Net income |
¥ | 53,493 | ¥ | 50,620 | ¥ | 106,504 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities : |
||||||||||||
Depreciation and amortization |
38,836 | 42,936 | 82,182 | |||||||||
Write-down of inventories |
3,829 | 3,043 | 11,328 | |||||||||
Gains on sales of securities, net |
(3,252 | ) | (228 | ) | (3,819 | ) | ||||||
Minority interests |
3,113 | 3,696 | 6,324 | |||||||||
Gains on sales of investment in subsidiaries |
(8,228 | ) | | (8,252 | ) | |||||||
(Increase) decrease in receivables |
(31,595 | ) | 10,188 | (32,626 | ) | |||||||
(Increase) decrease in inventories |
(31,174 | ) | 1,185 | (25,100 | ) | |||||||
Increase (decrease) in notes and accounts payable |
18,915 | (13,681 | ) | 6,015 | ||||||||
Increase (decrease) in accrued income taxes |
3,989 | (11,386 | ) | 9,066 | ||||||||
Increase in other current liabilities |
10,921 | 2,603 | 11,111 | |||||||||
Other, net |
(10,924 | ) | (9,378 | ) | (13,089 | ) | ||||||
Net cash provided by operating activities |
47,923 | 79,598 | 149,644 | |||||||||
Cash flows from investing activities : |
||||||||||||
Payments for purchases of securities |
(31,521 | ) | (16,194 | ) | (71,449 | ) | ||||||
Sales and maturities of securities |
30,712 | 97,499 | 127,119 | |||||||||
Acquisitions of business, net of cash acquired |
(756 | ) | (26,771 | ) | (756 | ) | ||||||
Proceeds from sales of investment in subsidiaries |
24,553 | | 24,602 | |||||||||
Payments for purchases of property, plant and equipment, and intangible assets |
(35,509 | ) | (32,520 | ) | (72,966 | ) | ||||||
Proceeds from sales of property, plant and equipment, and intangible assets |
785 | 462 | 2,693 | |||||||||
Deposit of negotiable certificate of deposits and time deposits |
(147,457 | ) | (206,872 | ) | (356,169 | ) | ||||||
Withdrawal of negotiable certificate of deposits and time deposits |
85,081 | 109,284 | 203,076 | |||||||||
Other, net |
28 | (2,088 | ) | (7,853 | ) | |||||||
Net cash used in investing activities |
(74,084 | ) | (77,200 | ) | (151,703 | ) | ||||||
Cash flows from financing activities : |
||||||||||||
Increase in short-term debt |
7,316 | 1,983 | 9,369 | |||||||||
Proceeds from issuance of long-term debt |
1,928 | 1 | 1,928 | |||||||||
Payments of long-term debt |
(10,713 | ) | (4,299 | ) | (13,361 | ) | ||||||
Dividends paid |
(10,385 | ) | (12,060 | ) | (20,632 | ) | ||||||
Purchase of treasury stock |
(104 | ) | (156 | ) | (251 | ) | ||||||
Reissuance of treasury stock |
2,115 | 6,688 | 7,666 | |||||||||
Other, net |
(3,236 | ) | (638 | ) | (5,364 | ) | ||||||
Net cash used in financing activities |
(13,079 | ) | (8,481 | ) | (20,645 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents |
2,182 | (1,617 | ) | 4,103 | ||||||||
Net decrease in cash and cash equivalents |
(37,058 | ) | (7,700 | ) | (18,601 | ) | ||||||
Cash and cash equivalents at beginning of period |
300,809 | 282,208 | 300,809 | |||||||||
Cash and cash equivalents at end of period |
¥ | 263,751 | ¥ | 274,508 | ¥ | 282,208 | ||||||
- 25 -
SUPPLEMENTAL CASH FLOW INFORMATION
Yen in millions | ||||||||||||
Six months ended September 30, |
Year ended 2007 |
|||||||||||
2006 | 2007 | |||||||||||
Cash paid during the period for : |
||||||||||||
Interest |
¥ | 979 | ¥ | 737 | ¥ | 1,603 | ||||||
Income taxes |
30,045 | 37,788 | 52,847 | |||||||||
Acquisitions of business : |
||||||||||||
Fair value of assets acquired |
¥ | 1,151 | ¥ | 32,606 | ¥ | 1,151 | ||||||
Fair value of liabilities assumed |
(333 | ) | (4,887 | ) | (333 | ) | ||||||
Cash acquired |
(62 | ) | (948 | ) | (62 | ) | ||||||
¥ | 756 | ¥ | 26,771 | ¥ | 756 | |||||||
Note:
AVX recorded the fair values of the assets and liabilities of American Technical Ceramics Corp. as of the date of the acquisition under the purchase method of accounting, however, because of the proximity of this acquisition to period end, the fair values are based on preliminary valuations and are subject to adjustment as additional information is obtained. |
- 26 -
SEGMENT INFORMATION
1. Reporting segments :
Yen in millions | |||||||||||||||
Six months ended September 30, | Increase (Dearease) |
Year ended March 31, 2007 |
|||||||||||||
2006 | 2007 | ||||||||||||||
Amount | Amount | % | Amount | ||||||||||||
Net sales : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 38,564 | ¥ | 41,286 | 7.1 | ¥ | 81,326 | ||||||||
Semiconductor Parts Group |
75,843 | 73,545 | (3.0 | ) | 152,292 | ||||||||||
Applied Ceramic Products Group |
64,132 | 69,743 | 8.7 | 131,103 | |||||||||||
Electronic Device Group |
139,984 | 148,562 | 6.1 | 286,156 | |||||||||||
Telecommunications Equipment Group |
117,181 | 113,907 | (2.8 | ) | 251,183 | ||||||||||
Information Equipment Group |
124,619 | 136,909 | 9.9 | 268,781 | |||||||||||
Others |
66,660 | 65,277 | (2.1 | ) | 137,235 | ||||||||||
Adjustments and eliminations |
(11,593 | ) | (12,669 | ) | | (24,179 | ) | ||||||||
¥ | 615,390 | ¥ | 636,560 | 3.4 | ¥ | 1,283,897 | |||||||||
Operating profit : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 7,373 | ¥ | 6,195 | (16.0 | ) | ¥ | 15,677 | |||||||
Semiconductor Parts Group |
11,887 | 8,367 | (29.6 | ) | 22,210 | ||||||||||
Applied Ceramic Products Group |
8,966 | 13,434 | 49.8 | 22,334 | |||||||||||
Electronic Device Group |
21,573 | 20,945 | (2.9 | ) | 44,487 | ||||||||||
Telecommunications Equipment Group |
(1,016 | ) | (103 | ) | | 291 | |||||||||
Information Equipment Group |
15,491 | 19,219 | 24.1 | 33,970 | |||||||||||
Others |
2,849 | 3,964 | 39.1 | 6,881 | |||||||||||
67,123 | 72,021 | 7.3 | 145,850 | ||||||||||||
Corporate |
5,152 | 5,893 | 14.4 | 8,569 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
259 | 3,617 | | 2,621 | |||||||||||
Adjustments and eliminations |
(149 | ) | (51 | ) | | (500 | ) | ||||||||
Income from continuing operations before income taxes and minority interests |
¥ | 72,385 | ¥ | 81,480 | 12.6 | ¥ | 156,540 | ||||||||
Depreciation and amortization : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 1,943 | ¥ | 3,627 | 86.7 | ¥ | 4,500 | ||||||||
Semiconductor Parts Group |
5,853 | 7,500 | 28.1 | 12,533 | |||||||||||
Applied Ceramic Products Group |
3,791 | 4,530 | 19.5 | 8,097 | |||||||||||
Electronic Device Group |
9,598 | 11,608 | 20.9 | 21,537 | |||||||||||
Telecommunications Equipment Group |
3,201 | 4,432 | 38.5 | 9,075 | |||||||||||
Information Equipment Group |
8,239 | 5,751 | (30.2 | ) | 16,326 | ||||||||||
Others |
4,584 | 3,528 | (23.0 | ) | 7,419 | ||||||||||
Corporate |
1,507 | 1,960 | 30.1 | 2,575 | |||||||||||
Total |
¥ | 38,716 | ¥ | 42,936 | 10.9 | ¥ | 82,062 | ||||||||
Capital expenditures : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 2,900 | ¥ | 3,100 | 6.9 | ¥ | 7,447 | ||||||||
Semiconductor Parts Group |
5,721 | 3,978 | (30.5 | ) | 11,432 | ||||||||||
Applied Ceramic Products Group |
2,510 | 3,654 | 45.6 | 7,330 | |||||||||||
Electronic Device Group |
10,893 | 11,246 | 3.2 | 19,812 | |||||||||||
Telecommunications Equipment Group |
1,745 | 1,092 | (37.4 | ) | 3,800 | ||||||||||
Information Equipment Group |
8,061 | 5,467 | (32.2 | ) | 11,962 | ||||||||||
Others |
4,329 | 1,549 | (64.2 | ) | 5,774 | ||||||||||
Corporate |
1,080 | 2,506 | 132.0 | 2,339 | |||||||||||
Total |
¥ | 37,239 | ¥ | 32,592 | (12.5 | ) | ¥ | 69,896 | |||||||
- 27 -
2. Geographic segments (Sales and Operating profit by geographic area) :
Yen in millions | |||||||||||||||
Six months ended September 30, | Increase (Decrease) |
Year ended March 31, 2007 |
|||||||||||||
2006 | 2007 | ||||||||||||||
Amount | Amount | % | Amount | ||||||||||||
Net sales : |
|||||||||||||||
Japan |
¥ | 250,962 | ¥ | 255,785 | 1.9 | ¥ | 523,869 | ||||||||
Intra-group sales and transfer between geographic areas |
199,385 | 194,451 | (2.5 | ) | 388,879 | ||||||||||
450,347 | 450,236 | (0.0 | ) | 912,748 | |||||||||||
United States of America |
155,355 | 146,131 | (5.9 | ) | 319,033 | ||||||||||
Intra-group sales and transfer between geographic areas |
17,783 | 15,872 | (10.7 | ) | 37,357 | ||||||||||
173,138 | 162,003 | (6.4 | ) | 356,390 | |||||||||||
Asia |
95,265 | 104,180 | 9.4 | 195,319 | |||||||||||
Intra-group sales and transfer between geographic areas |
78,505 | 90,166 | 14.9 | 152,219 | |||||||||||
173,770 | 194,346 | 11.8 | 347,538 | ||||||||||||
Europe |
101,494 | 118,012 | 16.3 | 219,695 | |||||||||||
Intra-group sales and transfer between geographic areas |
19,784 | 20,947 | 5.9 | 40,040 | |||||||||||
121,278 | 138,959 | 14.6 | 259,735 | ||||||||||||
Others |
12,314 | 12,452 | 1.1 | 25,981 | |||||||||||
Intra-group sales and transfer between geographic areas |
5,534 | 8,050 | 45.5 | 11,432 | |||||||||||
17,848 | 20,502 | 14.9 | 37,413 | ||||||||||||
Adjustments and eliminations |
(320,991 | ) | (329,486 | ) | | (629,927 | ) | ||||||||
¥ | 615,390 | ¥ | 636,560 | 3.4 | ¥ | 1,283,897 | |||||||||
Operating Profit : |
|||||||||||||||
Japan |
¥ | 49,773 | ¥ | 46,493 | (6.6 | ) | ¥ | 96,804 | |||||||
United States of America |
9,947 | 4,144 | (58.3 | ) | 23,521 | ||||||||||
Asia |
11,068 | 12,950 | 17.0 | 19,165 | |||||||||||
Europe |
3,825 | 5,565 | 45.5 | 10,218 | |||||||||||
Others |
852 | 1,777 | 108.6 | 1,086 | |||||||||||
75,465 | 70,929 | (6.0 | ) | 150,794 | |||||||||||
Adjustments and eliminations |
(8,491 | ) | 1,041 | | (5,444 | ) | |||||||||
66,974 | 71,970 | 7.5 | 145,350 | ||||||||||||
Corporate |
5,152 | 5,893 | 14.4 | 8,569 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
259 | 3,617 | | 2,621 | |||||||||||
Income from continuing operations before income taxes and minority interest |
¥ | 72,385 | ¥ | 81,480 | 12.6 | ¥ | 156,540 | ||||||||
- 28 -
3. Geographic segments (Sales by region) :
Yen in millions | |||||||||||||||||||||||||
Six months ended September 30, | Increase (Decrease) |
Year ended March 31, | |||||||||||||||||||||||
2006 | 2007 | 2007 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||
Japan |
¥ | 236,735 | 38.5 | ¥ | 241,811 | 38.0 | ¥ | 5,076 | 2.1 | ¥ | 496,959 | 38.7 | |||||||||||||
United States of America |
130,265 | 21.2 | 126,703 | 19.9 | (3,562 | ) | (2.7 | ) | 274,361 | 21.4 | |||||||||||||||
Asia |
107,111 | 17.4 | 118,594 | 18.6 | 11,483 | 10.7 | 216,663 | 16.9 | |||||||||||||||||
Europe |
97,464 | 15.8 | 112,606 | 17.7 | 15,142 | 15.5 | 210,726 | 16.4 | |||||||||||||||||
Others |
43,815 | 7.1 | 36,846 | 5.8 | (6,969 | ) | (15.9 | ) | 85,188 | 6.6 | |||||||||||||||
Net sales |
¥ | 615,390 | 100.0 | ¥ | 636,560 | 100.0 | ¥ | 21,170 | 3.4 | ¥ | 1,283,897 | 100.0 | |||||||||||||
Sales outside Japan |
¥ | 378,655 | ¥ | 394,749 | ¥ | 16,094 | 4.3 | ¥ | 786,938 | ||||||||||||||||
Sales outside Japan to net sales |
61.5 | % | 62.0 | % | 61.3 | % |
- 29 -
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Investments in debt and equity securities as of September 30, 2007, March 31, 2007 and September 30, 2006, included in short-term investments (current assets) and in securities and other investments (non-current assets) are summarized as follows :
Yen in millions | ||||||||||||||||||||||||
September 30, 2007 | March 31, 2007 | |||||||||||||||||||||||
Cost* | Aggregate Fair Value |
Gross Unrealized Gains |
Gross Unrealized Losses |
Cost* | Aggregate Fair Value |
Gross Unrealized Gains |
Gross Unrealized Losses | |||||||||||||||||
Available-for-sale securities : |
||||||||||||||||||||||||
Corporate debt securities |
¥ | 3,470 | ¥ | 3,617 | ¥ | 168 | ¥ | 21 | ¥ | 3,842 | ¥ | 4,033 | ¥ | 194 | ¥ | 3 | ||||||||
Other debt securities |
736 | 757 | 21 | | 74,563 | 74,574 | 71 | 60 | ||||||||||||||||
Equity securities |
274,645 | 533,497 | 259,316 | 464 | 272,653 | 585,274 | 312,724 | 103 | ||||||||||||||||
Total available-for-sale securities |
278,851 | 537,871 | 259,505 | 485 | 351,058 | 663,881 | 312,989 | 166 | ||||||||||||||||
Held-to-maturity securities : |
||||||||||||||||||||||||
Other debt securities |
24,038 | 24,055 | 17 | | 33,512 | 33,447 | | 65 | ||||||||||||||||
Total held-to-maturity securities |
24,038 | 24,055 | 17 | | 33,512 | 33,447 | | 65 | ||||||||||||||||
Total investments in debt and equity securities |
¥ | 302,889 | ¥ | 561,926 | ¥ | 259,522 | ¥ | 485 | ¥ | 384,570 | ¥ | 697,328 | ¥ | 312,989 | ¥ | 231 | ||||||||
September 30, 2006 | ||||||||||||
Cost* | Aggregate Fair Value |
Gross Unrealized Gains |
Gross Unrealized Losses | |||||||||
Available-for-sale securities : |
||||||||||||
Corporate debt securities |
¥ | 3,008 | ¥ | 3,143 | ¥ | 150 | ¥ | 15 | ||||
Other debt securities |
137,668 | 137,960 | 316 | 24 | ||||||||
Equity securities |
272,054 | 466,156 | 194,335 | 233 | ||||||||
Total available-for-sale securities |
412,730 | 607,259 | 194,801 | 272 | ||||||||
Held-to-maturity securities : |
||||||||||||
Other debt securities |
27,726 | 27,574 | | 152 | ||||||||
Total held-to-maturity securities |
27,726 | 27,574 | | 152 | ||||||||
Total investments in debt and equity securities |
¥ | 440,456 | ¥ | 634,833 | ¥ | 194,801 | ¥ | 424 | ||||
* | Cost represents amortized cost for held-to-maturity securities and acquisition cost for available-for-sale securities. The cost basis of individual securities is written down to fair value as a new cost basis when other-than-temporary impairment is recognized. |
- 30 -
EARNINGS PER SHARE
1. Stockholders equity per share, basic and diluted earnings per share are as follows:
Japanese yen | ||||||
Six months ended September 30, | Year ended March 31, | |||||
2006 | 2007 | 2007 | ||||
Stockholders equity per share |
7,306.02 | 8,077.76 | 8,028.45 | |||
Basic earnings per share |
284.64 | 267.66 | 566.03 | |||
Diluted earnings per share |
284.14 | 267.06 | 564.79 | |||
2. A reconciliation of the numerators and the denominators of basic and diluted earnings per share computations are as follows: | ||||||
Yen in millions, except per share amounts | ||||||
Six months ended September 30, | Year ended March 31, | |||||
2006 | 2007 | 2007 | ||||
Income from continuing operations |
48,318 | 50,620 | 101,329 | |||
Income from discontinued operations |
5,175 | | 5,175 | |||
Net income |
53,493 | 50,620 | 106,504 | |||
Basic earnings per share |
||||||
Income from continuing operations |
257.10 | 267.66 | 538.52 | |||
Income from discontinued operations |
27.54 | | 27.51 | |||
Net income |
284.64 | 267.66 | 566.03 | |||
Diluted earnings per share |
||||||
Income from continuing operations |
256.65 | 267.06 | 537.35 | |||
Income from discontinued operations |
27.49 | | 27.44 | |||
Net income |
284.14 | 267.06 | 564.79 | |||
Basic weighted average number of shares outstanding (shares in thousands) |
187,932 | 189,119 | 188,160 | |||
Dilutive effect of stock options (shares in thousands) |
334 | 429 | 413 | |||
Diluted weighted average number of shares outstanding (shares in thousands) |
188,266 | 189,548 | 188,573 |
- 31 -
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
1. | Scope of consolidation and application of the equity method : |
Major consolidated subsidiaries :
AVX CORPORATION
KYOCERA WIRELESS CORP.
KYOCERA MITA CORPORATION
KYOCERA ELCO CORPORATION
Major affiliates accounted for by the equity method :
WILLCOM, INC.
2. | Changes in scope of consolidation and application of the equity method : |
Consolidation | ||||
(Increase) |
10 | AMERICAN TECHNICAL CERAMICS CORP. and others | ||
(Decrease) | 5 | KYOCERA MITA (SCHWEIZ) AG and others | ||
Equity method | ||||
(Increase) | None | |||
(Decrease) | None |
3. | Summary of significant accounting policies |
Kyoceras consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.
(1) | Valuation of inventories |
Finished goods and work in process are mainly stated at the lower or cost of market, the cost being determined by the average method. All other inventories are mainly stated at the lower or cost of market, the cost being determined by the first-in, first-out method.
(2) | Valuation of securities |
Kyocera adopts Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities.
Held-to-maturity securities are recorded at amortized cost.
Available-for-sales securities are recorded at fair value, with unrealized gains and losses excluded from income
and recorded in other comprehensive income, net of taxes.
(3) | Depreciation method of property, plant and equipment |
Depreciation is computed based mainly on a declining balance method over their estimated useful lives.
(4) | Goodwill and other intangible assets |
Kyocera adopts Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets.
(5) | Accounting for allowances and accruals |
Allowance for doubtful accounts :
Kyocera provides allowance for doubtful accounts based on the past actual ratio of losses on bad debt in addition to the estimation of uncollectible amount based on the analysis of certain individual receivables.
Accrued pension and severance cost :
Kyocera adopts Statement of Financial Accounting Standards No. 87, Employers Accounting for Pensions and Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans an amendment of FASB No. 87, 88, 106 and 132(R), and pension and severance cost is accrued based on the projected benefit obligations and the fair value of plan assets at the balance sheet date. Prior service cost is amortized by the straight-line method over the average remaining service period of employees. Actuarial loss is recognized by amortizing a portion in excess of 10% of the greater of the projected benefit obligations or the market-related value of plan assets by the straight-line method over the average remaining service period of employees.
(6) | Accounting change |
In June 2006, the Financial Accounting Standard Board (FASB) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 (FIN 48) which clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with SFAS No. 109, Accounting for Income Taxes. FIN 48 also provides guidance on derecognition, classification, interest and penalties, disclosure and transitional measures. Cumulative effect of applying FIN 48, which was effective April 1, 2007, increased the opening balance of retained earnings by ¥3,968 million.
- 32 -
BALANCE SHEETS
Yen in millions | ||||||||||||||||||
September 30, | March 31, | |||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||||
Cash and bank deposits |
¥ | 119,336 | ¥ | 313,986 | ¥ | 203,301 | ||||||||||||
Trade notes receivable |
46,376 | 33,016 | 41,423 | |||||||||||||||
Trade accounts receivable |
96,306 | 109,184 | 108,685 | |||||||||||||||
Marketable securities |
37,997 | | 22,937 | |||||||||||||||
Finished goods and merchandise |
17,818 | 18,469 | 17,204 | |||||||||||||||
Raw materials |
16,546 | 13,685 | 16,560 | |||||||||||||||
Work in process |
20,416 | 20,036 | 20,541 | |||||||||||||||
Supplies |
745 | 903 | 706 | |||||||||||||||
Deferred income taxes |
16,590 | 13,969 | 17,193 | |||||||||||||||
Loans to subsidiaries |
14,372 | 8,817 | 16,880 | |||||||||||||||
Other accounts receivable |
8,048 | 6,480 | 8,291 | |||||||||||||||
Other current assets |
6,904 | 15,004 | 11,434 | |||||||||||||||
Allowance for doubtful accounts |
(164 | ) | (1,015 | ) | (173 | ) | ||||||||||||
Total current assets |
401,290 | 27.3 | 552,534 | 35.3 | 484,982 | 30.1 | ||||||||||||
Non-current assets : |
||||||||||||||||||
Tangible fixed assets : |
||||||||||||||||||
Buildings |
35,770 | 30,993 | 34,921 | |||||||||||||||
Structures |
2,197 | 1,785 | 2,091 | |||||||||||||||
Machinery and equipment |
47,358 | 43,658 | 44,896 | |||||||||||||||
Vehicles |
26 | 23 | 21 | |||||||||||||||
Tools, furniture and fixtures |
7,679 | 7,971 | 8,139 | |||||||||||||||
Land |
33,381 | 33,670 | 33,372 | |||||||||||||||
Construction in progress |
947 | 2,153 | 900 | |||||||||||||||
Total tangible fixed assets |
127,358 | 8.6 | 120,253 | 7.7 | 124,340 | 7.7 | ||||||||||||
Intangible assets : |
||||||||||||||||||
Patent rights and others |
13,365 | 7,091 | 10,431 | |||||||||||||||
Total intangible assets |
13,365 | 0.9 | 7,091 | 0.5 | 10,431 | 0.6 | ||||||||||||
Investments and other assets : |
||||||||||||||||||
Investments in securities |
577,884 | 544,719 | 648,538 | |||||||||||||||
Investments in subsidiaries and affiliates |
262,627 | 260,775 | 260,775 | |||||||||||||||
Investments in subsidiaries and affiliates other than equity securities |
27,054 | 26,685 | 26,685 | |||||||||||||||
Long-term loans |
22,659 | 19,577 | 20,633 | |||||||||||||||
Long-term prepaid expenses |
3,051 | 2,240 | 2,458 | |||||||||||||||
Long-term deposits |
34,000 | 28,000 | 31,000 | |||||||||||||||
Security deposits |
1,880 | 1,808 | 1,823 | |||||||||||||||
Other investments |
571 | 473 | 527 | |||||||||||||||
Allowance for doubtful accounts |
(354 | ) | (246 | ) | (301 | ) | ||||||||||||
Total investments and other assets |
929,372 | 63.2 | 884,031 | 56.5 | 992,138 | 61.6 | ||||||||||||
Total non-current assets |
1,070,095 | 72.7 | 1,011,375 | 64.7 | 1,126,909 | 69.9 | ||||||||||||
Total assets |
¥ | 1,471,385 | 100.0 | ¥ | 1,563,909 | 100.0 | ¥ | 1,611,891 | 100.0 | |||||||||
- 33 -
Yen in millions | |||||||||||||||||||||
September 30, | March 31, |
||||||||||||||||||||
2006 | 2007 | 2007 | |||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
Current liabilities : |
|||||||||||||||||||||
Trade accounts payable |
¥ | 56,667 | ¥ | 49,667 | 55,561 | ||||||||||||||||
Other payables |
20,763 | 21,718 | 21,774 | ||||||||||||||||||
Accrued expenses |
8,014 | 8,364 | 8,356 | ||||||||||||||||||
Income taxes payable |
13,052 | 9,280 | 12,550 | ||||||||||||||||||
Deposits received |
2,738 | 2,046 | 1,916 | ||||||||||||||||||
Accrued bonuses |
10,447 | 11,480 | 11,152 | ||||||||||||||||||
Accrued bonuses for directors |
34 | 73 | 136 | ||||||||||||||||||
Warranty reserves |
4,596 | 5,279 | 5,045 | ||||||||||||||||||
Allowance for sales returns |
143 | 131 | 114 | ||||||||||||||||||
Other current liabilities |
1,066 | 330 | 667 | ||||||||||||||||||
Total current liabilities |
117,520 | 8.0 | 108,368 | 6.9 | 117,271 | 7.3 | |||||||||||||||
Non-current liabilities : |
|||||||||||||||||||||
Long-term accounts payable |
3,425 | 1,260 | 2,953 | ||||||||||||||||||
Deferred income taxes |
142,667 | 164,405 | 191,441 | ||||||||||||||||||
Accrued pension and severance costs |
14,585 | 10,696 | 12,705 | ||||||||||||||||||
Retirement allowances for directors and executive officers |
968 | 956 | 1,022 | ||||||||||||||||||
Other non-current liabilities |
280 | 135 | 138 | ||||||||||||||||||
Total non-current liabilities |
161,925 | 11.0 | 177,452 | 11.4 | 208,259 | 12.9 | |||||||||||||||
Total liabilities |
279,445 | 19.0 | 285,820 | 18.3 | 325,530 | 20.2 | |||||||||||||||
Net assets |
|||||||||||||||||||||
Stockholders equity : |
|||||||||||||||||||||
Common stock |
115,703 | 7.9 | 115,703 | 7.4 | 115,703 | 7.2 | |||||||||||||||
Capital surplus: |
|||||||||||||||||||||
Additional paid-in capital |
192,555 | 192,555 | 192,555 | ||||||||||||||||||
Other capital surplus |
| 372 | 127 | ||||||||||||||||||
Total capital surplus |
192,555 | 13.1 | 192,927 | 12.3 | 192,682 | 12.0 | |||||||||||||||
Retained earnings: |
|||||||||||||||||||||
Legal reserves |
17,207 | 17,207 | 17,207 | ||||||||||||||||||
Other retained earnings : |
|||||||||||||||||||||
Reserve for special depreciation |
1,612 | 751 | 991 | ||||||||||||||||||
Reserve for research and development |
1,000 | 1,000 | 1,000 | ||||||||||||||||||
Reserve for dividends |
1,000 | 1,000 | 1,000 | ||||||||||||||||||
Reserve for retirement benefits |
300 | 300 | 300 | ||||||||||||||||||
Reserve for overseas investments |
1,000 | 1,000 | 1,000 | ||||||||||||||||||
General reserve |
603,837 | 643,837 | 603,837 | ||||||||||||||||||
Unappropriated retained earnings |
43,394 | 39,438 | 63,012 | ||||||||||||||||||
Total retained earnings |
669,350 | 45.5 | 704,533 | 45.1 | 688,347 | 42.7 | |||||||||||||||
Treasury stock, at cost |
(27,109 | ) | (1.9 | ) | (15,568 | ) | (1.0 | ) | (21,855 | ) | (1.4 | ) | |||||||||
Total stockholders equity |
950,499 | 64.6 | 997,595 | 63.8 | 974,877 | 60.5 | |||||||||||||||
Difference of appreciation and conversion |
|||||||||||||||||||||
Net unrealized gains on other securities |
241,441 | 16.4 | 280,494 | 17.9 | 311,484 | 19.3 | |||||||||||||||
Total net assets |
1,191,940 | 81.0 | 1,278,089 | 81.7 | 1,286,361 | 79.8 | |||||||||||||||
Total liabilities and net assets |
¥ | 1,471,385 | 100.0 | ¥ | 1,563,909 | 100.0 | ¥ | 1,611,891 | 100.0 | ||||||||||||
- 34 -
STATEMENTS OF INCOME
Yen in millions | ||||||||||||||||||||||||
Six months ended September 30, | Increase (Decrease) % |
Year ended March 31, |
||||||||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Net sales |
¥ | 259,738 | 100.0 | ¥ | 264,117 | 100.0 | 1.7 | ¥ | 531,557 | 100.0 | ||||||||||||||
Cost of sales |
201,260 | 77.5 | 204,420 | 77.4 | 1.6 | 407,121 | 76.6 | |||||||||||||||||
Gross profit |
58,478 | 22.5 | 59,697 | 22.6 | 2.1 | 124,436 | 23.4 | |||||||||||||||||
Selling, general and administrative expenses |
37,194 | 14.3 | 39,301 | 14.9 | 5.7 | 75,004 | 14.1 | |||||||||||||||||
Profit from operations |
21,284 | 8.2 | 20,396 | 7.7 | (4.2 | ) | 49,432 | 9.3 | ||||||||||||||||
Non-operating income : |
||||||||||||||||||||||||
Interest and dividend income |
9,955 | 3.8 | 15,755 | 6.0 | 58.3 | 25,090 | 4.7 | |||||||||||||||||
Foreign currency transaction gains, net |
622 | 0.2 | 617 | 0.2 | (0.8 | ) | 1,021 | 0.2 | ||||||||||||||||
Other non-operating income |
3,003 | 1.2 | 4,241 | 1.6 | 41.2 | 6,730 | 1.3 | |||||||||||||||||
Total non-operating income |
13,580 | 5.2 | 20,613 | 7.8 | 51.8 | 32,841 | 6.2 | |||||||||||||||||
Non-operating expenses : |
||||||||||||||||||||||||
Interest expense |
2 | 0.0 | 2 | 0.0 | 1.4 | 14 | 0.0 | |||||||||||||||||
Other non-operating expenses |
2,018 | 0.8 | 1,633 | 0.6 | (19.1 | ) | 8,530 | 1.6 | ||||||||||||||||
Total non-operating expenses |
2,020 | 0.8 | 1,635 | 0.6 | (19.1 | ) | 8,544 | 1.6 | ||||||||||||||||
Recurring profit |
32,844 | 12.6 | 39,374 | 14.9 | 19.9 | 73,729 | 13.9 | |||||||||||||||||
Non-recurring gain |
10,753 | 4.2 | 333 | 0.1 | (96.9 | ) | 11,405 | 2.1 | ||||||||||||||||
Non-recurring loss |
484 | 0.2 | 3,206 | 1.2 | 562.4 | 4,461 | 0.8 | |||||||||||||||||
Income before income taxes |
43,113 | 16.6 | 36,501 | 13.8 | (15.3 | ) | 80,673 | 15.2 | ||||||||||||||||
Income taxes current |
14,176 | 5.4 | 11,273 | 4.3 | (20.5 | ) | 23,814 | 4.5 | ||||||||||||||||
Refund of income taxes previous years |
(4,356 | ) | (1.7 | ) | | | | (4,305 | ) | (0.8 | ) | |||||||||||||
Income taxes deferred |
(362 | ) | (0.1 | ) | (2,276 | ) | (0.9 | ) | | (865 | ) | (0.2 | ) | |||||||||||
Net income |
¥ | 33,655 | 13.0 | ¥ | 27,504 | 10.4 | (18.3 | ) | ¥ | 62,029 | 11.7 | |||||||||||||
- 35 -
STATEMENT OF CHANGES IN NET ASSETS
Yen in millions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended September 30, 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders equity | Difference of appreciation and |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Capital surplus | Retained earnings | Treasury at cost |
Total holders |
Net on other |
Total gain (loss) on |
Total net assets |
||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital |
Total Capital surplus |
Legal reserve |
Other retained earnings | Total retained earnings |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for special ciation |
Reserve for research ment |
Reserve for dividends |
Reserve ment |
Reserve for ments |
General reserve |
Unappro- priated |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2006 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 192,555 | ¥ | 17,207 | ¥ | 1,584 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 553,837 | ¥ | 69,245 | ¥ | 645,173 | ¥ | (29,143 | ) | ¥ | 924,288 | ¥ | 207,973 | ¥ | 207,973 | ¥ | 1,132,261 | ||||||||||||||||||||||
Changes in net assets |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to reserve for special depreciation |
| | | | 623 | | | | | | (623 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||
Reversal of reserve for special depreciation |
| | | | (595 | ) | | | | | | 595 | | | | | | | |||||||||||||||||||||||||||||||||||||||
Appropriation to general reserve |
| | | | | | | | | 50,000 | (50,000 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||
Dividends |
| | | | | | | | | | (9,387 | ) | (9,387 | ) | | (9,387 | ) | | | (9,387 | ) | ||||||||||||||||||||||||||||||||||||
Directors bonuses |
| | | | | | | | | | (68 | ) | (68 | ) | | (68 | ) | | | (68 | ) | ||||||||||||||||||||||||||||||||||||
Net income |
| | | | | | | | | | 33,655 | 33,655 | | 33,655 | | | 33,655 | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
| | | | | | | | | | | | (104 | ) | (104 | ) | | | (104 | ) | |||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock |
| | | | | | | | | | (23 | ) | (23 | ) | 2,138 | 2,115 | | | 2,115 | ||||||||||||||||||||||||||||||||||||||
Net change in items other than stockholders equity |
| | | | | | | | | | | | | | 33,468 | 33,468 | 33,468 | ||||||||||||||||||||||||||||||||||||||||
Total changes in net assets |
| | | | 28 | | | | | 50,000 | (25,851 | ) | 24,177 | 2,034 | 26,211 | 33,468 | 33,468 | 59,679 | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2006 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 192,555 | ¥ | 17,207 | ¥ | 1,612 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 603,837 | ¥ | 43,394 | ¥ | 669,350 | ¥ | (27,109 | ) | ¥ | 950,499 | ¥ | 241,441 | ¥ | 241,441 | ¥ | 1,191,940 | ||||||||||||||||||||||
- 36 -
STATEMENT OF CHANGES IN NET ASSETS
Yen in millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended September 30, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders equity | Difference of appreciation and conversion |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Capital surplus | Retained earnings | Treasury at cost |
Total holders |
Net gains on other |
Total gain (loss) on |
Total net assets |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital |
Other capital surplus |
Total capital surplus |
Legal reserve |
Other retained earnings | Total retained earnings |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for special ciation |
Reserve for research ment |
Reserve for dividends |
Reserve ment |
Reserve for ments |
General reserve |
Unappro- priated |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2007 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 127 | ¥ | 192,682 | ¥ | 17,207 | ¥ | 991 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 603,837 | ¥ | 63,012 | ¥ | 688,347 | ¥ | (21,855 | ) | ¥ | 974,877 | ¥311,484 | ¥ | 311,484 | ¥ | 1,286,361 | ||||||||||||||||||||||||||
Changes in net assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to reserve for special depreciation |
| | | | | 4 | | | | | | (4 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Reversal of reserve for special depreciation |
| | | | | (244 | ) | | | | | | 244 | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Appropriation to general reserve |
| | | | | | | | | | 40,000 | (40,000 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Dividends |
| | | | | | | | | | | (11,319 | ) | (11,319 | ) | | (11,319 | ) | | | (11,319 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income |
| | | | | | | | | | | 27,504 | 27,504 | | 27,504 | | | 27,504 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
| | | | | | | | | | | | | (156 | ) | (156 | ) | | | (156 | ) | |||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock |
| | 245 | 245 | | | | | | | | | | 6,443 | 6,688 | | | 6,688 | ||||||||||||||||||||||||||||||||||||||||||||
Net change in items other than stockholders equity |
| | | | | | | | | | | | | | | (30,990 | ) | (30,990 | ) | (30,990 | ) | |||||||||||||||||||||||||||||||||||||||||
Total changes in net assets |
| | 245 | 245 | | (240 | ) | | | | | 40,000 | (23,574 | ) | 16,186 | 6,287 | 22,718 | (30,990 | ) | (30,990 | ) | (8,272 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2007 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 372 | ¥ | 192,927 | ¥ | 17,207 | ¥ | 751 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 643,837 | ¥ | 39,438 | ¥ | 704,533 | ¥ | (15,568 | ) | ¥ | 997,595 | ¥ | 280,494 | ¥ | 280,494 | ¥ | 1,278,089 | |||||||||||||||||||||||||
- 37 -
STATEMENT OF CHANGES IN NET ASSETS
Yen in millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended March 31, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders equity | Difference of appreciation and conversion |
Total net assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Capital surplus | Retained earnings | Treasury at cost |
Total holders |
Net gains on other |
Total gain (loss)
on |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital |
Other capital surplus |
Total capital surplus |
Legal reserve |
Other retained earnings | Total retained earnings |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for ciation |
Reserve for research ment |
Reserve for dividends |
Reserve ment |
Reserve for ments |
General reserve |
Unappro- priated |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2006 |
¥ | 115,703 | ¥ | 192,555 | | ¥ | 192,555 | ¥ | 17,207 | ¥ | 1,584 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 553,837 | ¥ | 69,245 | ¥ | 645,173 | ¥ | (29,143 | ) | ¥ | 924,288 | ¥ | 207,973 | ¥ | 207,973 | ¥ | 1,132,261 | ||||||||||||||||||||||||
Changes in net assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to reserve for special depreciation* |
| | | | | 623 | | | | | | (623 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Reversal of reserve for special depreciation* |
| | | | | (595 | ) | | | | | | 595 | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Appropriation to reserve for special depreciation |
| | | | | 2 | | | | | | (2 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Reversal of reserve for special depreciation |
| | | | | (623 | ) | | | | | | 623 | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Appropriation to general reserve* |
| | | | | | | | | | 50,000 | (50,000 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Dividends* |
| | | | | | | | | | | (9,387 | ) | (9,387 | ) | | (9,387 | ) | | | (9,387 | ) | ||||||||||||||||||||||||||||||||||||||
Dividends |
| | | | | | | | | | | (9,400 | ) | (9,400 | ) | | (9,400 | ) | | | (9,400 | ) | ||||||||||||||||||||||||||||||||||||||
Directors bonuses* |
| | | | | | | | | | | (68 | ) | (68 | ) | | (68 | ) | | | (68 | ) | ||||||||||||||||||||||||||||||||||||||
Net income |
| | | | | | | | | | | 62,029 | 62,029 | | 62,029 | | | 62,029 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
| | | | | | | | | | | | | (251 | ) | (251 | ) | | | (251 | ) | |||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock |
| | 127 | 127 | | | | | | | | | | 7,539 | 7,666 | | | 7,666 | ||||||||||||||||||||||||||||||||||||||||||
Net change in items other than stockholders equity |
| | | | | | | | | | | | | | | 103,511 | 103,511 | 103,511 | ||||||||||||||||||||||||||||||||||||||||||
Total changes in net assets |
| | 127 | 127 | | (593 | ) | | | | | 50,000 | (6,233 | ) | 43,174 | 7,288 | 50,589 | 103,511 | 103,511 | 154,100 | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2007 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 127 | ¥ | 192,682 | ¥ | 17,207 | ¥ | 991 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 603,837 | ¥ | 63,012 | ¥ | 688,347 | ¥ | (21,855 | ) | ¥ | 974,877 | ¥ | 311,484 | ¥ | 311,484 | ¥ | 1,286,361 | |||||||||||||||||||||||
* | Appropriation of surplus for the annual stockholders meeting held in June 2006 |
- 38 -
Appendix
Consolidated Orders and Production by Reporting Segment
Consolidated Orders by Reporting Segment
(Yen in millions) | |||||||||||||||
Six months ended September 30, | Increase (Decrease) % |
||||||||||||||
2006 | 2007 | ||||||||||||||
Amount | % of orders |
Amount | % of orders |
||||||||||||
Fine Ceramic Parts Group |
39,785 | 6.2 | 42,582 | 6.6 | 7.0 | ||||||||||
Semiconductor Parts Group |
76,861 | 12.0 | 74,599 | 11.6 | (2.9 | ) | |||||||||
Applied Ceramic Products Group |
66,757 | 10.4 | 72,380 | 11.3 | 8.4 | ||||||||||
Electronic Device Group |
147,734 | 23.1 | 151,647 | 23.7 | 2.6 | ||||||||||
Total Components Business |
331,137 | 51.7 | 341,208 | 53.2 | 3.0 | ||||||||||
Telecommunications Equipment Group |
129,231 | 20.2 | 108,498 | 16.9 | (16.0 | ) | |||||||||
Information Equipment Group |
124,136 | 19.4 | 137,544 | 21.5 | 10.8 | ||||||||||
Total Equipment Business |
253,367 | 39.6 | 246,042 | 38.4 | (2.9 | ) | |||||||||
Others |
67,699 | 10.6 | 66,335 | 10.3 | (2.0 | ) | |||||||||
Adjustments and eliminations |
(12,021 | ) | (1.9 | ) | (12,239 | ) | (1.9 | ) | | ||||||
Orders |
640,182 | 100.0 | 641,346 | 100.0 | 0.2 | ||||||||||
Note 1. From April 1, 2007, the Optical Equipment Group, previously a separate reporting segment, has been reclassified into Others. Accordingly, orders for the previous first half have been retroactively reclassified.
Note 2. For the reasons Note 1 above, orders of Others in the previous first half increased by ¥5,954 million and Adjustments and eliminations decreased by ¥(4) million compared with those previously announced.
Consolidated Production by Reporting Segment
(Yen in millions) | |||||||||||
Six months ended September 30, | Increase (Decrease) % |
||||||||||
2006 | 2007 | ||||||||||
Amount | % of production |
Amount | % of production |
||||||||
Fine Ceramic Parts Group |
38,959 | 6.1 | 42,082 | 6.6 | 8.0 | ||||||
Semiconductor Parts Group |
77,929 | 12.2 | 74,253 | 11.7 | (4.7 | ) | |||||
Applied Ceramic Products Group |
65,436 | 10.2 | 72,168 | 11.4 | 10.3 | ||||||
Electronic Device Group |
144,236 | 22.5 | 149,054 | 23.6 | 3.3 | ||||||
Total Components Business |
326,560 | 51.0 | 337,557 | 53.3 | 3.4 | ||||||
Telecommunications Equipment Group |
126,414 | 19.7 | 108,651 | 17.2 | (14.1 | ) | |||||
Information Equipment Group |
137,311 | 21.5 | 136,276 | 21.5 | (0.8 | ) | |||||
Total Equipment Business |
263,725 | 41.2 | 244,927 | 38.7 | (7.1 | ) | |||||
Others |
49,647 | 7.8 | 50,420 | 8.0 | 1.6 | ||||||
Production |
639,932 | 100.0 | 632,904 | 100.0 | (1.1 | ) | |||||
Note 3. For the reasons set forth Note 1 above, production of Others in the previous first half increased by ¥5,923 million compared with those previously announced.
- 39 -
|
October 30, 2007 | |
KYOCERA CORPORATION |
Consolidated Financial Highlights
Results for the Six Months Ended September 30, 2007
(Yen in millions, except for per share amounts, exchange rates and number of employees) |
|||||||
Six Months Ended September 30, | Increase (Decrease) (%) |
||||||
2006 | 2007 | ||||||
Net sales |
615,390 | 636,560 | 3.4 | ||||
Profit from operations |
63,128 | 67,823 | 7.4 | ||||
Income from continuing operations before income taxes |
72,385 | 81,480 | 12.6 | ||||
Net income |
53,493 | 50,620 | (5.4 | ) | |||
Average exchange rates : |
|||||||
US$ |
115 | 119 | | ||||
Euro |
146 | 162 | | ||||
Earnings per share : |
|||||||
Net income |
|||||||
Basic |
284.64 | 267.66 | (6.0 | ) | |||
Diluted |
284.14 | 267.06 | (6.0 | ) | |||
Capital expenditures |
37,239 | 32,592 | (12.5 | ) | |||
Depreciation |
33,682 | 37,291 | 10.7 | ||||
R&D expenses |
30,257 | 31,060 | 2.7 | ||||
Total assets |
1,951,702 | 2,107,097 | | ||||
Stockholders equity |
1,373,567 | 1,530,084 | | ||||
Sales of products manufactured outside Japan to net sales (%) |
34.9 | 34.0 | | ||||
Number of employees |
63,235 | 65,133 | |
- 40 -
Name of Listed Company: | Kyocera Corporation | |
Name of Representative: | Makoto Kawamura, President and Director | |
(Code number: 6971; First Section of the Tokyo Stock Exchange; | ||
First Section of the Osaka Securities Exchange) | ||
Person for Inquiry: | Akihiko Toyotani | |
General Manager, Finance Division | ||
(Tel: 075-604-3500) |
Notice regarding Revision of Amounts of Interim Dividend and Annual Total Dividend for the Fiscal
Period Ending March 31, 2008 (54th Fiscal Period)
This is to advise you that Kyocera Corporation (Kyocera) resolved at the meeting of its Board of Directors held on October 30, 2007 regarding its interim dividend and annual total dividend per share for the fiscal period ending March 31, 2008 as follows:
1. Reason for revision
Kyocera believes that the best way to increase corporate value and meet shareholders expectations is to improve consolidated performance into the future. Kyocera therefore strongly takes into consideration the linkage between dividend amounts and consolidated performance and has implemented a dividend policy aiming for a consolidated payout ratio of approximately 20% to 25%. In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors that include the amount of capital expenditures necessary for medium to long-term growth.
With respect to the interim consolidated result as announced today, net sales and operating profit as well as pre-tax income increased as compared with the corresponding six-month period in the previous fiscal period. With regard to the six months ending March 31, 2008, Kyocera expects firm demand in the digital consumer equipment market, and Kyocera therefore projects solid demand for components used in these products to continue. Based on those expectations regarding the market environment, Kyocera expects to be able to achieve its financial forecasts for the full fiscal period, with net income per share for the full fiscal period ending March 31, 2008 reaching 543.40 yen.
Kyocera had anticipated paying an amount of annual total dividends for the fiscal period ending March 31, 2008 of 110 yen per share (a payout ratio of 20.2%), which is the same amount as paid in the previous fiscal period ended March 31, 2007. However, taking into consideration its expected performance for the full fiscal period, including its results for the semi-annual period as stated above, Kyocera has decided to pay an interim dividend relating to the fiscal period ending March 31, 2008 in the amount of 60 yen per share, an increase of 10 yen from the interim dividend in the amount of 50 yen per share paid in the corresponding previous fiscal period. As a result, the total amount of dividends paid for the full fiscal period ending March 31, 2008 will be 120 yen per share, constituting a the payout ratio of 22.1%.
-1-
2. Substance of revision
Fiscal period ending March 2008 (from April 1, 2007 to March 31, 2008)
Dividend per Share | |||||||||
Record Dates |
As of the end of |
As of the end of the full fiscal |
Annual total | ||||||
Forecast previously published |
|
Not Announced |
|
Not Announced |
¥ | 110 | |||
Revision made this time |
¥ | 60 | ¥ | 60 | ¥ | 120 | |||
(c.f.) Dividends for previous fiscal period |
¥ | 50 | ¥ | 60 | ¥ | 110 |
As of April 26, 2007, the date of the announcement of results for the fiscal period ended March 31, 2008, Kyocera announced a forecast of annual total dividends of 110 yen per share, but it did not make any announcement with respect to the interim dividend and the yea-end dividend.
3. Commencement date of Payment of interim dividend : December 5, 2007
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: general economic conditions in our markets, which are primarily Japan, North America, Europe, and Asia, particularly including China; unexpected changes in economic, political and legal conditions in China; our ability to develop, launch and produce innovative products, including meeting quality and delivery standards, and our ability to otherwise meet the advancing technical requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components; manufacturing delays or defects resulting from outsourcing or internal manufacturing processes which may adversely affect our production yields and operating results; factors that may affect our exports, including a strong yen, political and economic instability, difficulties in collection of accounts receivable, decrease in cost competitiveness of our products, increases in shipping and handling costs, difficulty in staffing and managing international operations, and inadequate protection of our intellectual property; changes in exchange rates, particularly between the yen and the U.S. dollar and euro, respectively, in which we make significant sales; inability to secure skilled employees, particularly engineering and technical personnel; insufficient protection of our trade secrets and patents; holding licenses to continue to manufacture and sell certain of its products, the expense of which may adversely affects its results of operations; laws and regulations relating to the taxation, and to manufacturing and trade events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases; the occurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business facilities are located; and fluctuations in the value of, and impairment losses on, securities and other assets held by us, and changes in accounting principles. 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.
-2-