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 April 2008
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: April 25, 2008 |
Information furnished on this form :
Exhibit |
||
1. | Consolidated and Non-consolidated Financial Results for the Year Ended March 31, 2008 |
Consolidated Results of Kyocera Corporation and its Subsidiaries
for the Year Ended March 31, 2008
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.
1. Consolidated selected financial information for the year ended March 31, 2008 :
(1) Consolidated results of operations :
Japanese yen | ||||||||
Years ended March 31, | ||||||||
2007 | 2008 | |||||||
Net sales |
¥ | 1,283,897 million | ¥ | 1,290,436 million | ||||
% change from the previous year |
9.4 | % | 0.5 | % | ||||
Profit from operations |
135,102 million | 152,420 million | ||||||
% change from the previous year |
35.5 | % | 12.8 | % | ||||
Income from continuing operations before income taxes |
156,540 million | 174,842 million | ||||||
% change from the previous year |
33.5 | % | 11.7 | % | ||||
Net income |
106,504 million | 107,244 million | ||||||
% change from the previous year |
52.8 | % | 0.7 | % | ||||
Earnings per share : |
||||||||
Basic |
¥566.03 | ¥566.58 | ||||||
Diluted |
564.79 | 565.80 | ||||||
Return on equity |
7.6 | % | 7.2 | % | ||||
Income from continuing operations before income taxes to total assets |
7.7 | % | 8.5 | % | ||||
Profit from operations to net sales |
10.5 | % | 11.8 | % |
Note :
1. Equity in earnings of affiliates and unconsolidated subsidiaries :
Year ended March 31, 2008 : |
¥ | 6,091 million | |||
Year ended March 31, 2007 : |
¥ | 2,621 million |
(2) Consolidated financial position :
Japanese yen | ||||||||
March 31, | ||||||||
2007 | 2008 | |||||||
Total assets |
¥ | 2,130,464 million | ¥ | 1,976,746 million | ||||
Stockholders equity |
1,514,560 million | 1,451,165 million | ||||||
Stockholders equity to total assets |
71.1 | % | 73.4 | % | ||||
Stockholders equity per share |
¥8,028.45 | ¥7,659.72 |
(3) Consolidated cash flows :
Japanese yen | ||||||
Years ended March 31, | ||||||
2007 | 2008 | |||||
Cash flows from operating activities |
¥ | 149,644 million | ¥ | 196,935 million | ||
Cash flows from investing activities |
(151,703) million | 14,894 million | ||||
Cash flows from financing activities |
(20,645) million | (28,071) million | ||||
Cash and cash equivalents at end of year |
282,208 million | 447,586 million |
1
2. Dividends :
Japanese yen | |||||||||
Years ended March 31, | Year ending March 31, | ||||||||
2007 | 2008 | 2009 | |||||||
Interim dividends per share |
¥50 | ¥60 | | ||||||
Year-end dividends per share |
60 | 60 | | ||||||
Annual dividends per share |
110 | 120 | ¥120 | ||||||
Annual aggregate amount of dividends paid |
20,719 | 22,732 | | ||||||
Dividends to net income |
19.4 | % | 21.2 | % | 22.3 | % | |||
Dividends to stockholders equity |
1.5 | % | 1.5 | % | |
Note :
Dividends per share for the year ending March 31, 2009 are forecasted to be 120 yen on annual basis.
3. Consolidated financial forecast for the year ending March 31, 2009 :
Japanese yen | |||||
Year ending March 31, 2009 | |||||
Net sales |
¥1,476,000 million | ||||
% change from the previous year |
14.4 | % | |||
Profit from operations |
145,000 million | ||||
% change from the previous year |
(4.9 | )% | |||
Income from continuing operations before income taxes |
165,000 million | ||||
% change from the previous year |
(5.6 | )% | |||
Net income |
102,000 million | ||||
% change from the previous year |
(4.9 | )% |
Note :
Forecast of earnings per share : ¥538.13
Earnings per share amount is computed based on Statement of Financial Accounting Standards No.128.
Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2008.
2
4. Others
(1) Changes in scope of consolidation and application of the equity method :
Consolidation | Equity method | |||
Increase |
14 | 0 | ||
Decrease |
7 | 0 |
Please refer to the accompanying BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS on page 25.
(2) Change in accounting policies :
There were changes in accounting policies due to new accounting standards.
Please refer to the accompanying BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS on page 26.
(3) Number of shares (common stock) :
March 31, | ||||
2007 | 2008 | |||
Number of shares issued |
191,309,290 | 191,309,290 | ||
Number of shares in treasury |
2,660,201 | 1,855,119 | ||
Number of shares outstanding (average) |
188,160,482 | 189,283,237 |
(Reference) Outline of Non-Consolidated Results for Kyocera Corporation
1. Results for the year ended March 31, 2008 :
(1) Results of operations :
Japanese yen | ||||||||
Years ended March 31, | ||||||||
2007 | 2008 | |||||||
Net sales |
¥ | 531,557 million | ¥ | 539,320 million | ||||
% change from the previous year |
11.3 | % | 1.5 | % | ||||
Profit from operations |
49,432 million | 48,551 million | ||||||
% change from the previous year |
23.8 | % | (1.8 | )% | ||||
Recurring profit |
73,729 million | 90,211 million | ||||||
% change from the previous year |
8.1 | % | 22.4 | % | ||||
Net income |
62,029 million | 67,859 million | ||||||
% change from the previous year |
(9.7 | )% | 9.4 | % | ||||
Earnings per share : |
||||||||
Basic |
¥329.66 | ¥358.51 | ||||||
Diluted |
¥328.94 | ¥358.01 | ||||||
(2) Financial Position :
Japanese yen | ||||||||
March 31, | ||||||||
2007 | 2008 | |||||||
Total assets |
¥ | 1,611,891 million | ¥ | 1,465,960 million | ||||
Net assets |
1,286,361 million | 1,219,415 million | ||||||
Net assets to total assets |
79.8 | % | 83.2 | % | ||||
Net assets per share |
6,818.80 | 6,436.46 |
With regard to forecasts set forth above, please refer to the accompanying Forward Looking Statements on page 13.
3
Business Results
1. Analysis of Business Results
[Business Results for the Year Ended March 31, 2008]
(1) Economic | Situation and Business Environment |
The Japanese economy during the year ended March 31, 2008 (fiscal 2008) was characterized by steadily increasing exports and a high level of corporate earnings, while individual consumption was also stable. Slumping housing investment and rising energy and raw material prices, however, resulted in only moderate economic expansion overall. In the United States, credit uneasiness worsened, triggered by issues related to housing loans for individuals with low creditworthiness and culminating in heightened fears of a business slowdown beginning in the summer of 2007. Combined with this, a drop-off in individual consumption and restrained capital investment became obvious and resulted in economic deceleration. The European economy expanded moderately, supported by an increase in exports. Individual consumption in Europe has tapered off since the start of calendar year 2008, however, and the economic outlook has become increasingly uncertain. The Chinese economy continued to expand on account of increases in capital investment and exports, together with robust individual consumption.
In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (Kyocera Group or Kyocera), demands for mobile phone handsets, flat panel TV sets and other equipment expanded steadily, particularly in the first half of fiscal 2008. There have been inventory adjustments for mobile phone handsets in certain Asian markets, however, since the start of calendar year 2008. In addition, the yen appreciated against the U.S. dollar, with the exchange rate at one time dropping below 100 yen to the dollar.
(2) Consolidated | Financial Results |
During fiscal 2008, Kyocera Group worked aggressively to introduce new products and improve productivity in order to achieve continuous sales expansion and high profitability.
Consolidated net sales for fiscal 2008 amounted to ¥1,290,436 million, an increase of only 0.5% compared with the year ended March 31, 2007 (fiscal 2007) but still marked the highest. This result can be attributed to an increase in sales in the Components Business, which more than offset a decrease in sales in the Equipment Business.
Profit from operations increased by 12.8% to ¥152,420 million due to a significant increase in profit in the Equipment Business, which was partly offset by a decrease in profit in the Components Business. Depreciation increased by ¥5,475 million resulting from a comprehensive review of the value of fixed assets, triggered by the tax revision in Japan.
Income from continuing operations before income taxes increased by 11.7% to ¥174,842 million due to increases in equity in earnings of affiliates and unconsolidated subsidiaries and interest and dividend income. Net income increased by 0.7% to ¥107,244 million.
(Yen in millions, except per share amounts and exchange rate) | ||||||||||
Years ended March 31, | ||||||||||
2007 | 2008 | Increase (Decrease) (%) | ||||||||
Amount | % of net sales |
Amount | % of net sales |
|||||||
Net sales |
1,283,897 | 100.0 | 1,290,436 | 100.0 | 0.5 | |||||
Profit from operations |
135,102 | 10.5 | 152,420 | 11.8 | 12.8 | |||||
Income from continuing operations before income taxes |
156,540 | 12.2 | 174,842 | 13.5 | 11.7 | |||||
Net income |
106,504 | 8.3 | 107,244 | 8.3 | 0.7 | |||||
Diluted earnings per share |
564.79 | | 565.80 | | 0.2 | |||||
Average US$ exchange rate |
117 | | 114 | | | |||||
Average Euro exchange rate |
150 | | 162 | | |
4
(3) Implemented Management Measures and Significant Management Decisions made in Fiscal 2008
1) In September 2007, AVX Corporation (AVX), a U.S. subsidiary, acquired American Technical Ceramics Corp., a U.S.-based manufacturer of electronic components, and made it a wholly-owned subsidiary, with the goal of strengthening its business in the area of advanced components such as high frequency ceramic capacitors. This acquisition has enabled AVX to expand its product line-up and its sales networks for high-frequency products.
2) With the objective of further enhancing the Telecommunications Equipment Group, Kyocera concluded a basic agreement with SANYO Electric Co., Ltd. (SANYO) in October 2007 regarding acquisition by Kyocera of the mobile phone business of SANYO, and it concluded a final agreement relating thereto in January 2008. Through this acquisition, Kyocera seeks to expand sales and boost profitability in the Telecommunications Equipment Group by expanding its sales channels in North America and by integrating the excellent product development and design technologies of SANYO with the management resources of Kyocera. This acquisition was completed on April 1, 2008.
(4) Consolidated Financial Results by Business Segment
Sales in the Components Business increased by 4.5% compared with fiscal 2007 to ¥679,990 million, while operating profit decreased by 4.1% to ¥100,373 million. The operating profit ratio was 14.8%.
In particular, the Applied Ceramic Products Group posted a considerable increase in sales compared with fiscal 2007 driven by the solar energy business in overseas markets, which led to the overall increase in sales in the Components Business compared with fiscal 2007. Despite an increase in profit in the Applied Ceramic Products Group, operating profit in the Components Business decreased overall compared to fiscal 2007 due to a decline in profit in the Fine Ceramic Parts Group, the Semiconductor Parts Group and the Electronic Device Group.
Sales in the Equipment Business decreased by 4.3% compared with fiscal 2007 to ¥497,563 million, while operating profit increased significantly by 35.2% to ¥46,324million. The operating profit ratio was 9.3%.
Overall sales in the Equipment Business were down from fiscal 2007, despite an increase in sales in the Information Equipment Group, on account of a decrease in sales in the Telecommunications Equipment Group. Operating profit in the Equipment Business increased significantly overall, however, owing to an increase in profit in both reporting segments.
5
Consolidated results by reporting segment are as follows.
Components Business:
1) Fine Ceramic Parts Group
This reporting segment includes fine ceramic components and automotive components.
Sales of parts for diesel engines for automobiles, sapphire substrates for LEDs and dielectric parts for mobile phone base stations all increased. However, there was a decrease in demand for parts for semiconductor fabrication equipment, one of the core products in this reporting segment, due to a decrease in capital investment in the semiconductor industry. As a result, sales in this reporting segment remained level with fiscal 2007. Operating profit decreased compared with fiscal 2007 due primarily to an increase in depreciation.
2) Semiconductor Parts Group
This reporting segment includes ceramic packages and organic packages.
Sales of Surface Mount Device (SMD) ceramic packages for electronic components, ceramic packages for image sensors and organic packages increased steadily. Sales of parts for optical telecommunications devices decreased, however, leading to only a slight increase in overall sales in this reporting segment compared with fiscal 2007. Although losses shrank substantially in the organic package business, overall operating profit in this segment decreased due to an increase in depreciation cost coupled with a decline in selling prices.
6
3) Applied Ceramic Products Group
This reporting segment includes solar power generating systems, cutting tools, dental and medical implants, and jewelry and applied ceramic related products.
Both sales and operating profit increased significantly in this reporting segment compared with fiscal 2007 due to considerable growth in sales in the solar energy business in overseas markets, notably Europe, and to an increase in sales in the cutting tool business.
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.
Demands for capacitors and crystal related products have decreased since the start of calendar year 2008. Production of digital consumer equipment was solid throughout fiscal 2008, however, resulting in increased overall sales in this reporting segment compared with fiscal 2007. Operating profit decreased substantially, however, due to a decline in selling prices, etc.
Equipment Business:
1) Telecommunications Equipment Group
This reporting segment includes mobile phone handsets as well as PHS base stations and handsets.
Despite strong sales in the mobile phone handset business in Japan, a slow sales overseas culminated in a decline in overall sales in this reporting segment compared with fiscal 2007. Operating profit increased significantly compared with fiscal 2007, however, due to a reduction in product development and production costs in the domestic mobile phone handset business, and improved profitability in the PHS related business as a result of concentrating management resources in Japan.
2) Information Equipment Group
This reporting segment includes ECOSYS brand printers and digital MFPs.
Sales in this reporting segment increased due to sales growth in printers, particularly in Europe, spurred by aggressive new product introductions and enhanced sales activities. Operating profit increased significantly compared with fiscal 2007 on account of new product introductions and increased sales of consumables in addition to the positive effect of yen depreciation 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 increased slightly compared with fiscal 2007 to ¥138,494 million. Operating profit increased substantially by 40.0% to ¥9,635 million due to improved profitability at Kyocera Communication Systems Co., Ltd. and in the optical related business.
Consolidated Sales by Reporting Segment
(Yen in millions) | |||||||||||||||
Years ended March 31, | Increase (Decrease) % |
||||||||||||||
2007 | 2008 | ||||||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||||||
Fine Ceramic Parts Group |
81,326 | 6.3 | 81,309 | 6.3 | (0.0 | ) | |||||||||
Semiconductor Parts Group |
152,292 | 11.9 | 154,538 | 12.0 | 1.5 | ||||||||||
Applied Ceramic Products Group |
131,103 | 10.2 | 149,942 | 11.6 | 14.4 | ||||||||||
Electronic Device Group |
286,156 | 22.3 | 294,201 | 22.8 | 2.8 | ||||||||||
Total Components Business |
650,877 | 50.7 | 679,990 | 52.7 | 4.5 | ||||||||||
Telecommunications Equipment Group |
251,183 | 19.6 | 220,817 | 17.1 | (12.1 | ) | |||||||||
Information Equipment Group |
268,781 | 20.9 | 276,746 | 21.5 | 3.0 | ||||||||||
Total Equipment Business |
519,964 | 40.5 | 497,563 | 38.6 | (4.3 | ) | |||||||||
Others |
137,235 | 10.7 | 138,494 | 10.7 | 0.9 | ||||||||||
Adjustments and eliminations |
(24,179 | ) | (1.9 | ) | (25,611 | ) | (2.0 | ) | | ||||||
Net sales |
1,283,897 | 100.0 | 1,290,436 | 100.0 | 0.5 | ||||||||||
8
Consolidated Operating Profit by Reporting Segment
(Yen in millions) | |||||||||||||
Years ended March 31, | Increase (Decrease) % |
||||||||||||
2007 | 2008 | ||||||||||||
Amount | % of segment sales |
Amount | % of segment sales |
||||||||||
Fine Ceramic Parts Group |
15,677 | 19.3 | 11,167 | 13.7 | (28.8 | ) | |||||||
Semiconductor Parts Group |
22,210 | 14.6 | 20,027 | 13.0 | (9.8 | ) | |||||||
Applied Ceramic Products Group |
22,334 | 17.0 | 32,655 | 21.8 | 46.2 | ||||||||
Electronic Device Group |
44,487 | 15.5 | 36,524 | 12.4 | (17.9 | ) | |||||||
Total Components Business |
104,708 | 16.1 | 100,373 | 14.8 | (4.1 | ) | |||||||
Telecommunications Equipment Group |
291 | 0.1 | 6,786 | 3.1 | | ||||||||
Information Equipment Group |
33,970 | 12.6 | 39,538 | 14.3 | 16.4 | ||||||||
Total Equipment Business |
34,261 | 6.6 | 46,324 | 9.3 | 35.2 | ||||||||
Others |
6,881 | 5.0 | 9,635 | 7.0 | 40.0 | ||||||||
Operating profit |
145,850 | 11.4 | 156,332 | 12.1 | 7.2 | ||||||||
Corporate |
8,569 | | 12,497 | | 45.8 | ||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
2,621 | | 6,091 | | 132.4 | ||||||||
Adjustments and eliminations |
(500 | ) | | (78 | ) | | | ||||||
Income from continuing operations before income taxes |
156,540 | 12.2 | 174,842 | 13.5 | 11.7 | ||||||||
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 fiscal 2007 have been retroactively reclassified.
Note 2. For the reasons set forth in Note 1 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. Also, operating profit of Others in fiscal 2007 decreased by ¥1,895 million compared with those previously announced.
9
(5) Consolidated Sales by Geographic Area
(Yen in millions) | |||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||
2007 | 2008 | ||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||
Japan |
496,959 | 38.7 | 507,837 | 39.4 | 2.2 | ||||||
United States of America |
274,361 | 21.4 | 248,760 | 19.3 | (9.3 | ) | |||||
Asia |
216,663 | 16.9 | 232,425 | 18.0 | 7.3 | ||||||
Europe |
210,726 | 16.4 | 224,066 | 17.3 | 6.3 | ||||||
Others |
85,188 | 6.6 | 77,348 | 6.0 | (9.2 | ) | |||||
Net sales |
1,283,897 | 100.0 | 1,290,436 | 100.0 | 0.5 | ||||||
1) Japan
Sales increased compared with fiscal 2007 due mainly to increase in sales in the Semiconductor Parts Group and Kyocera Communication Systems, Co., Ltd.
2) United Sates of America
Sales decreased compared with fiscal 2007 due mainly to a decline in sales in the Telecommunications Equipment Group.
3) Asia
Sales increased compared with fiscal 2007 due to sales growth in the Electronic Device Group.
4) Europe
Sales increased in the Information Equipment Group and the solar energy business in the Applied Ceramic Products Group. As a result, sales in this region increased compared with fiscal 2007.
5) Others
Although sales in the Information Equipment Group in Latin America and Middle East increased, sales in the Telecommunication Equipment Group in Latin America and Oceania declined. As a result, overall sales in this region decreased compared with fiscal 2007.
10
(6) Capital Expenditures and Depreciation
(Yen in millions) | ||||||||||
Years ended March 31, | Increase (Decrease) (%) | |||||||||
2007 | 2008 | |||||||||
Amount | % of net sales |
Amount | % of net sales |
|||||||
Capital expenditures |
69,896 | 5.4 | 85,101 | 6.6 | 21.8 | |||||
Depreciation |
70,155 | 5.5 | 75,630 | 5.9 | 7.8 |
During fiscal 2008, Kyocera made capital expenditures particularly to increase production capacity in the Electronic Device Group and the solar energy business in response to burgeoning demand. Overall capital expenditures in fiscal 2008 increased compared with fiscal 2007. Furthermore, depreciation increased compared with fiscal 2007 due to the increase in capital expenditures in fiscal 2007 and to a review of depreciation method, triggered by the tax revision in Japan.
[Fiscal 2009 Forecast]
Consolidated Forecasts for the Year Ending March 31, 2009 (fiscal 2009)
(Yen in millions, except per share amounts and exchange rates) | |||||||||||
Fiscal 2008 Results | Fiscal 2009 Forecasts | Increase (Decrease) (%) |
|||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||
Net sales |
1,290,436 | 100.0 | 1,476,000 | 100.0 | 14.4 | ||||||
Profit from operations |
152,420 | 11.8 | 145,000 | 9.8 | (4.9 | ) | |||||
Income from continuing operations before income taxes |
174,842 | 13.5 | 165,000 | 11.2 | (5.6 | ) | |||||
Net income |
107,244 | 8.3 | 102,000 | 6.9 | (4.9 | ) | |||||
Diluted earnings per share |
565.80 | | 538.13 | | (4.9 | ) | |||||
Average US$ exchange rate |
114 | | 100 | | | ||||||
Average Euro exchange rate |
162 | | 152 | | | ||||||
Capital expenditures |
85,101 | 6.6 | 84,000 | 5.7 | (1.3 | ) | |||||
Depreciation |
75,630 | 5.9 | 90,000 | 6.1 | 19.0 |
The global economic downturn is expected to intensify in fiscal 2009, fuelling fear of a negative impact on demand for digital consumer equipment, and therefore also uncertainty in the outlook for component demand.
Based on this market outlook, Kyocera believes that sales in the Components Business will be sluggish in fiscal 2009. However, Kyocera forecasts increase of sales compared with fiscal 2008 owing to a sales increase as a result of the acquisition of the mobile phone business of SANYO in the Telecommunications Equipment Group, and to an increase in sales from the Applied Ceramic Products Group, particularly relating to the solar energy business. On the other hand, operating profit is expected to decrease compared with fiscal 2008 due mainly to costs associated with infrastructure development in line with business integration in the Telecommunications Equipment Group, coupled with selling price erosion in the Components Business and the impact of the appreciation of the yen.
Nonetheless, Kyocera aims at a minimum to achieve its aforementioned financial forecasts. To improve business performance, Kyocera will work aggressively to introduce new products, reduce costs, enhance productivity and cultivate new markets.
11
Consolidated sales and operating profit forecasts by reporting segment are as follows.
Consolidated Sales by Reporting Segment
(Yen in millions) | |||||||||||||||
Fiscal 2008 Results | Fiscal 2009 Forecasts | Increase (Decrease) (%) |
|||||||||||||
Amount | % of net sales |
Amount | % of net sales |
||||||||||||
Fine Ceramic Parts Group |
81,309 | 6.3 | 81,500 | 5.5 | 0.2 | ||||||||||
Semiconductor Parts Group |
154,538 | 12.0 | 155,000 | 10.5 | 0.3 | ||||||||||
Applied Ceramic Products Group |
149,942 | 11.6 | 179,000 | 12.1 | 19.4 | ||||||||||
Electronic Device Group |
294,201 | 22.8 | 281,000 | 19.1 | (4.5 | ) | |||||||||
Total Components Business |
679,990 | 52.7 | 696,500 | 47.2 | 2.4 | ||||||||||
Telecommunications Equipment Group |
220,817 | 17.1 | 366,000 | 24.8 | 65.7 | ||||||||||
Information Equipment Group |
276,746 | 21.5 | 290,000 | 19.6 | 4.8 | ||||||||||
Total Equipment Business |
497,563 | 38.6 | 656,000 | 44.4 | 31.8 | ||||||||||
Others |
138,494 | 10.7 | 146,000 | 9.9 | 5.4 | ||||||||||
Adjustments and eliminations |
(25,611 | ) | (2.0 | ) | (22,500 | ) | (1.5 | ) | | ||||||
Net sales |
1,290,436 | 100.0 | 1,476,000 | 100.0 | 14.4 | ||||||||||
Consolidated Operating Profit by Reporting Segment
(Yen in millions) | |||||||||||
Fiscal 2008 Results | Fiscal 2009 Forecasts | Increase (Decrease) (%) |
|||||||||
Amount | % of segment sales |
Amount | % of segment sales |
||||||||
Fine Ceramic Parts Group |
11,167 | 13.7 | 10,000 | 12.3 | (10.5 | ) | |||||
Semiconductor Parts Group |
20,027 | 13.0 | 20,500 | 13.2 | 2.4 | ||||||
Applied Ceramic Products Group |
32,655 | 21.8 | 33,000 | 18.4 | 1.1 | ||||||
Electronic Device Group |
36,524 | 12.4 | 31,000 | 11.0 | (15.1 | ) | |||||
Total Components Business |
100,373 | 14.8 | 94,500 | 13.6 | (5.9 | ) | |||||
Telecommunications Equipment Group |
6,786 | 3.1 | 5,000 | 1.4 | (26.3 | ) | |||||
Information Equipment Group |
39,538 | 14.3 | 35,000 | 12.1 | (11.5 | ) | |||||
Total Equipment Business |
46,324 | 9.3 | 40,000 | 6.1 | (13.7 | ) | |||||
Others |
9,635 | 7.0 | 14,500 | 9.9 | 50.5 | ||||||
Operating profit |
156,332 | 12.1 | 149,000 | 10.1 | (4.7 | ) | |||||
Corporate and others |
18,510 | | 16,000 | | (13.6 | ) | |||||
Income from continuing operations before income taxes |
174,842 | 13.5 | 165,000 | 11.2 | (5.6 | ) | |||||
12
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; future initiatives and in-process research and development may not produce the desired results; 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.
13
2. Analysis of Financial Position
1. Cash Flow
Cash and cash equivalents at March 31, 2008 increased by ¥165,378 million to ¥447,586 million compared with those at March 31, 2007.
(Yen in millions) | |||||||||
Years Ended March 31, | Increase (Decrease) |
||||||||
2007 | 2008 | ||||||||
Cash flow from operating activities |
149,644 | 196,935 | 47,291 | ||||||
Cash flow from investing activities |
(151,703 | ) | 14,894 | 166,597 | |||||
Cash flow from financing activities |
(20,645 | ) | (28,071 | ) | (7,426 | ) | |||
Effect of exchange rate changes on cash and cash equivalents |
4,103 | (18,380 | ) | (22,483 | ) | ||||
Net increase (decrease) in cash and cash equivalents |
(18,601 | ) | 165,378 | 183,979 | |||||
Cash and cash equivalents at beginning of year |
300,809 | 282,208 | (18,601 | ) | |||||
Cash and cash equivalents at end of year |
282,208 | 447,586 | 165,378 |
(1) Cash flow from operating activities
Net cash provided by operating activities in fiscal 2008 increased by ¥47,291 million to ¥196,935 million from ¥149,644 million in fiscal 2007. This was due mainly to a decrease in receivables that increased in fiscal 2007.
(2) Cash flow from investing activities
Cash flow from investing activities turned from ¥151,703 million of cash outflows in fiscal 2007 to ¥14,894 million of cash inflows in fiscal 2008. This was due mainly to a large increase in withdrawal of time deposits, which exceeded increases in purchases of property, plant and equipment, and intangible assets, and acquisitions of businesses.
(3) Cash flow from financing activities
Net cash used in financing activities in fiscal 2008 increased by ¥7,426 million to ¥28,071 million from ¥20,645 million in fiscal 2007. This was due mainly to an increase in dividends paid.
2. Cash Flows Indexes (Consolidated)
Years Ended March 31, | |||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | |||||||||||
Stockholders equity to total assets |
64.1 | % | 67.3 | % | 66.7 | % | 71.1 | % | 73.4 | % | |||||
Market capitalization to total assets |
91.3 | % | 82.2 | % | 101.3 | % | 98.4 | % | 80.2 | % | |||||
Interest bearing debts per operating cash flows (years) |
3.2 | 1.0 | 0.8 | 0.2 | 0.1 | ||||||||||
Operating cash flows per interest paid (ratio) |
20.6 | 62.4 | 88.5 | 93.4 | 161.8 |
All indexes are computed on a consolidated basis.
Interest bearing debts represent all debts with interest expense included in consolidated balance sheets.
3. Basic Profit Distribution Policy and Dividends for Fiscal 2008 and Fiscal 2009
(1) Basic Profit Distribution Policy
Kyocera believes that the best way to increase corporate value and meet shareholders expectations is to improve future consolidated performance. 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 reserves 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 for Fiscal 2008
Based on performance during fiscal 2008 and pursuant to the aforementioned policy, Kyocera will distribute a year-end dividend in the amount of 60 yen per share. When aggregated with the interim dividend in the amount of 60 yen per share, the total annual dividend will be 120 yen per share, an increase of 10 yen compared with fiscal 2007.
(3) Dividend Forecast for Fiscal 2009
Dividend amounts for fiscal 2009 will be decided pursuant to (1) Basic Profit Distribution Policy set forth above. At present, Kyocera forecasts a total annual dividend in the amount of 120 yen per share based on financial forecast for fiscal 2009.
14
KYOCERA GROUP
Kyocera group consists of Kyocera Corporation, 176 subsidiaries and 10 affiliates.
(Chart of the group companies)
15
Management Policies
1. Basic Policy
Kyocera aims to be respected by society as The Company from the perspective of corporate ethics, while maintaining continuous sales growth and high profitability. To achieve this management vision, Kyoceras management policy is to further drive business expansion to be a creative company that continues to grow. In order to implement this policy, Kyocera aims to increase corporate value by expanding businesses; namely by promoting efficient use of management resources and further strengthening consolidated group management.
2. Target of Pre-tax Income Ratio
To be a creative company that continues to grow, Kyocera aims to achieve its target of a pre-tax income ratio of 15% or higher.
3. Medium Term Management Strategy
Kyocera promotes high-value-added diversification as its management strategy to realize such management policy. This involves ensuring that each business is highly profitable and pursuing synergies within Kyocera with the objective of driving sustainable growth even in an ever-changing business environment.
Specifically, Kyocera aims to: 1) exploit competitive advantages; 2) strengthen existing businesses; and 3) create new businesses.
1) Exploit competitive advantages
The Kyocera Philosophy, which places peoples hearts at its core, the Amoeba Management system, which is unique to Kyocera and has been a driving force for growth since Kyocera Corporations earliest days, and a strong financial structure, are sources of competitive advantage for Kyocera over other companies in implementing its diversification strategy. With these foundations firmly in place, Kyocera endeavors to strengthen competitiveness in technological development, sales and marketing in the high-growth potential markets for telecommunications and information processing and for environmental protection, and to translate its diversification strategy into improved business performance.
2) Strengthen existing businesses
Kyocera strives to continuously improve profitability in all existing businesses within Kyocera Group. Elsewhere, by strengthening ties and maximizing synergies between headquarters Kyocera Corporation and Kyocera Group companies, Kyocera seeks to improve profitability in each business segment on a consolidated basis. In promoting a global strategy in each business, Kyocera has created development, manufacturing and sales systems in optimal locations, while the integration of Group-wide resources helps boost the competitiveness of existing businesses. Kyocera regularly reviews those businesses that have lost market competitiveness and that show little promise of expansion going forward.
3) Create new businesses
Kyocera endeavors to create businesses that will become its core going forward in order to improve consolidated performance over the medium term. To achieve this goal, Kyocera integrates Group-wide management resources to develop new technologies and products and create new markets. The focus of Kyoceras business creation strategy lies in the markets for telecommunications and information processing and for environmental protection.
16
4. Challenges
Kyocera faces the following challenges from fiscal 2009 onward, in light of the aforementioned medium to long-term management strategy.
(1) Improve | profitability in the Telecommunications Equipment Group |
Kyocera acquired the mobile phone business of SANYO on April 1, 2008. As a result, the Telecommunications Equipment Group now generates the largest amount of sales among all of Kyoceras reporting segments. Going forward, Kyocera seeks to achieve the following three goals as a means to swiftly improve profitability in such business: 1) expand sales and improve profitability in the mobile phone market in North America; 2) further expand market share and establish strong business foundations in the Japanese mobile phone market; and 3) expand the wireless telecommunication systems business.
(2) Strengthen | new product development and create new businesses |
Kyocera promotes the development of small ceramics and organic packages in the Semiconductor Parts Group and electronic devices befitting sophisticated digital consumer equipment for the telecommunications and information processing market. Kyocera is also striving to increase the conversion efficiency of photovoltaic generating systems for the environmental preservation market. In addition, Kyocera seeks to create new businesses in key markets by leveraging its cutting-edge materials and components technologies amassed across departments within Kyocera. Specifically, Kyocera is pushing ahead with development aimed at quick commercialization of solid oxide fuel cells (SOFC) for household use by exploiting materials technology employed in fine ceramic parts.
17
CONSOLIDATED BALANCE SHEETS
Yen in millions | ||||||||||||||||
March 31, | Increase (Decrease) |
|||||||||||||||
2007 | 2008 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||
Cash and cash equivalents |
¥ | 282,208 | ¥ | 447,586 | ¥ | 165,378 | ||||||||||
Short-term investments |
213,495 | 147,503 | (65,992 | ) | ||||||||||||
Trade notes receivables |
25,033 | 20,375 | (4,658 | ) | ||||||||||||
Trade accounts receivables |
236,380 | 205,522 | (30,858 | ) | ||||||||||||
Less allowances for doubtful accounts and sales returns |
(5,960 | ) | (4,352 | ) | 1,608 | |||||||||||
Inventories |
209,188 | 205,212 | (3,976 | ) | ||||||||||||
Deferred income taxes |
45,390 | 41,244 | (4,146 | ) | ||||||||||||
Other current assets |
40,757 | 55,135 | 14,378 | |||||||||||||
Total current assets |
1,046,491 | 49.1 | 1,118,225 | 56.6 | 71,734 | |||||||||||
Non-current assets : |
||||||||||||||||
Investments and advances : |
||||||||||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
10,093 | 16,753 | 6,660 | |||||||||||||
Securities and other investments |
690,568 | 437,369 | (253,199 | ) | ||||||||||||
Total investments and advances |
700,661 | 32.9 | 454,122 | 23.0 | (246,539 | ) | ||||||||||
Property, plant and equipment, at cost : |
||||||||||||||||
Land |
56,806 | 57,155 | 349 | |||||||||||||
Buildings |
261,998 | 274,206 | 12,208 | |||||||||||||
Machinery and equipment |
729,636 | 718,812 | (10,824 | ) | ||||||||||||
Construction in progress |
7,362 | 17,920 | 10,558 | |||||||||||||
Less accumulated depreciation |
(774,896 | ) | (782,194 | ) | (7,298 | ) | ||||||||||
Total property, plant and equipment, at cost |
280,906 | 13.2 | 285,899 | 14.4 | 4,993 | |||||||||||
Goodwill |
32,894 | 1.5 | 39,794 | 2.0 | 6,900 | |||||||||||
Intangible assets |
24,657 | 1.2 | 29,829 | 1.5 | 5,172 | |||||||||||
Other assets |
44,855 | 2.1 | 48,877 | 2.5 | 4,022 | |||||||||||
Total non-current assets |
1,083,973 | 50.9 | 858,521 | 43.4 | (225,452 | ) | ||||||||||
Total assets |
¥ | 2,130,464 | 100.0 | ¥ | 1,976,746 | 100.0 | ¥ | (153,718 | ) | |||||||
18
Yen in millions | ||||||||||||||||
March 31, | ||||||||||||||||
2007 | 2008 | Increase (Decrease) |
||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current liabilities : |
||||||||||||||||
Short-term borrowings |
¥ | 15,250 | ¥ | 7,279 | ¥ | (7,971 | ) | |||||||||
Current portion of long-term debt |
5,853 | 3,432 | (2,421 | ) | ||||||||||||
Trade notes and accounts payable |
100,295 | 95,390 | (4,905 | ) | ||||||||||||
Other notes and accounts payable |
49,134 | 66,757 | 17,623 | |||||||||||||
Accrued payroll and bonus |
41,680 | 43,207 | 1,527 | |||||||||||||
Accrued income taxes |
36,475 | 27,118 | (9,357 | ) | ||||||||||||
Other accrued liabilities |
33,391 | 32,815 | (576 | ) | ||||||||||||
Other current liabilities |
24,110 | 25,684 | 1,574 | |||||||||||||
Total current liabilities |
306,188 | 14.4 | 301,682 | 15.3 | (4,506 | ) | ||||||||||
Non-current liabilities : |
||||||||||||||||
Long-term debt |
7,283 | 8,298 | 1,015 | |||||||||||||
Accrued pension and severance liabilities |
16,297 | 15,041 | (1,256 | ) | ||||||||||||
Deferred income taxes |
206,858 | 118,016 | (88,842 | ) | ||||||||||||
Other non-current liabilities |
12,355 | 17,542 | 5,187 | |||||||||||||
Total non-current liabilities |
242,793 | 11.4 | 158,897 | 8.0 | (83,896 | ) | ||||||||||
Total liabilities |
548,981 | 25.8 | 460,579 | 23.3 | (88,402 | ) | ||||||||||
Minority interests in subsidiaries |
66,923 | 3.1 | 65,002 | 3.3 | (1,921 | ) | ||||||||||
Stockholders equity : |
||||||||||||||||
Common stock |
115,703 | 115,703 | | |||||||||||||
Additional paid-in capital |
162,363 | 162,864 | 501 | |||||||||||||
Retained earnings |
1,055,293 | 1,143,821 | 88,528 | |||||||||||||
Accumulated other comprehensive income |
203,056 | 44,066 | (158,990 | ) | ||||||||||||
Treasury stock, at cost |
(21,855 | ) | (15,289 | ) | 6,566 | |||||||||||
Total stockholders equity |
1,514,560 | 71.1 | 1,451,165 | 73.4 | (63,395 | ) | ||||||||||
Total liabilities, minority interests and stockholders equity |
¥ | 2,130,464 | 100.0 | ¥ | 1,976,746 | 100.0 | ¥ | (153,718 | ) | |||||||
Note: Accumulated other comprehensive income is as follows: | ||||||||||||||||
Yen in millions | ||||||||||||||||
March 31, | ||||||||||||||||
2007 | 2008 | |||||||||||||||
Net unrealized gains on securities |
¥ | 184,670 | ¥ | 64,799 | ||||||||||||
Net unrealized gains on derivative financial instruments |
¥ | 63 | ¥ | 196 | ||||||||||||
Pension adjustments |
¥ | 15,419 | ¥ | 12,865 | ||||||||||||
Foreign currency translation adjustments |
¥ | 2,904 | ¥ | (33,794 | ) |
19
CONSOLIDATED STATEMENTS OF INCOME
Yen in millions and shares in thousands, except per share amounts | |||||||||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||||||||
2007 | 2008 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
Net sales |
¥ | 1,283,897 | 100.0 | ¥ | 1,290,436 | 100.0 | ¥ | 6,539 | 0.5 | ||||||||||||
Cost of sales |
900,470 | 70.1 | 883,763 | 68.5 | (16,707 | ) | (1.9 | ) | |||||||||||||
Gross profit |
383,427 | 29.9 | 406,673 | 31.5 | 23,246 | 6.1 | |||||||||||||||
Selling, general and administrative expenses |
248,325 | 19.4 | 254,253 | 19.7 | 5,928 | 2.4 | |||||||||||||||
Profit from operations |
135,102 | 10.5 | 152,420 | 11.8 | 17,318 | 12.8 | |||||||||||||||
Other income (expenses) : |
|||||||||||||||||||||
Interest and dividend income |
15,472 | 1.2 | 18,444 | 1.4 | 2,972 | 19.2 | |||||||||||||||
Interest expense |
(1,647 | ) | (0.1 | ) | (1,480 | ) | (0.1 | ) | 167 | | |||||||||||
Foreign currency transaction losses, net |
(65 | ) | (0.0 | ) | (956 | ) | (0.1 | ) | (891 | ) | | ||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
2,621 | 0.2 | 6,091 | 0.5 | 3,470 | 132.4 | |||||||||||||||
Gain (loss) on sales of securities, net |
3,819 | 0.3 | (622 | ) | (0.1 | ) | (4,441 | ) | | ||||||||||||
Other, net |
1,238 | 0.1 | 945 | 0.1 | (293 | ) | (23.7 | ) | |||||||||||||
Total other income |
21,438 | 1.7 | 22,422 | 1.7 | 984 | 4.6 | |||||||||||||||
Income from continuing operations before income taxes and minority interests |
156,540 | 12.2 | 174,842 | 13.5 | 18,302 | 11.7 | |||||||||||||||
Income taxes |
48,887 | 3.8 | 60,235 | 4.6 | 11,348 | 23.2 | |||||||||||||||
Income from continuing operations before minority interests |
107,653 | 8.4 | 114,607 | 8.9 | 6,954 | 6.5 | |||||||||||||||
Minority interests |
(6,324 | ) | (0.5 | ) | (7,363 | ) | (0.6 | ) | (1,039 | ) | | ||||||||||
Income from continuing operations |
101,329 | 7.9 | 107,244 | 8.3 | 5,915 | 5.8 | |||||||||||||||
Income from discontinued operations |
5,175 | 0.4 | | | (5,175 | ) | | ||||||||||||||
Net income |
¥ | 106,504 | 8.3 | ¥ | 107,244 | 8.3 | ¥ | 740 | 0.7 | ||||||||||||
Earnings per share : |
|||||||||||||||||||||
Income from continuing operations : |
|||||||||||||||||||||
Basic |
¥ | 538.52 | ¥ | 566.58 | |||||||||||||||||
Diluted |
¥ | 537.35 | ¥ | 565.80 | |||||||||||||||||
Income from discontinued operations : |
|||||||||||||||||||||
Basic |
¥ | 27.51 | | ||||||||||||||||||
Diluted |
¥ | 27.44 | | ||||||||||||||||||
Net income : |
|||||||||||||||||||||
Basic |
¥ | 566.03 | ¥ | 566.58 | |||||||||||||||||
Diluted |
¥ | 564.79 | ¥ | 565.80 | |||||||||||||||||
Weighted average number of shares of common stock outstanding : |
|||||||||||||||||||||
Basic |
188,160 | 189,283 | |||||||||||||||||||
Diluted |
188,573 | 189,544 |
20
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 years ended March 31, 2007 and 2008 were an increase of ¥219,055 million and a decrease of ¥51,746 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. | In March 2005, Kyocera received a Correction Notice from the Osaka Regional Taxation Bureau regarding transfer pricing. In May 2005, Kyocera filed the Request for Reinvestigation. As a consequence of Kyocera filing the Request for Reinvestigation, the Osaka Regional Taxation Bureau approved a refund for ¥4,035 million which was recorded in income taxes for the year ended March 31, 2007. |
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 Kyocera Leasing Co., Ltd. for the year ended March 31, 2007 have been recorded as income from discontinued operations in conformity with SFAS No.144, Accounting for the Impairment of Disposal of Long-Lived Assets. |
21
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(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 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 tax |
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 year |
107,244 | ¥ | 107,244 | |||||||||||||||||||
Other comprehensive income |
(158,990 | ) | (158,990 | ) | ||||||||||||||||||
Total comprehensive income for the year |
¥ | (51,746 | ) | |||||||||||||||||||
Cash dividends |
(22,684 | ) | ||||||||||||||||||||
Purchase of treasury stock (18) |
(211 | ) | ||||||||||||||||||||
Reissuance of treasury stock (823) |
254 | 6,777 | ||||||||||||||||||||
Stock option plan of subsidiaries |
247 | |||||||||||||||||||||
Balance, March 31, 2008 (189,454) |
¥ | 115,703 | ¥ | 162,864 | ¥ | 1,143,821 | ¥ | 44,066 | ¥ | (15,289 | ) | |||||||||||
Note:
FIN 48 - Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109 Please refer to page 26 (6) Accounting changes.
22
CONSOLIDATED STATEMENTS OF CASH FLOWS
Yen in millions | ||||||||
Years ended March 31, | ||||||||
2007 | 2008 | |||||||
Cash flows from operating activities : |
||||||||
Net income |
¥ | 106,504 | ¥ | 107,244 | ||||
Adjustments to reconcile net income to net cash provided by operating activities : |
||||||||
Depreciation and amortization |
82,182 | 87,045 | ||||||
Write-down of inventories |
11,328 | 5,141 | ||||||
Minority interests |
6,324 | 7,363 | ||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
(2,621 | ) | (6,091 | ) | ||||
(Gains) losses on sales of securities, net |
(3,819 | ) | 622 | |||||
Gains on sales of investment in subsidiaries |
(8,252 | ) | | |||||
(Increase) decerase in receivables |
(32,626 | ) | 13,732 | |||||
Increase in inventories |
(25,100 | ) | (9,766 | ) | ||||
Increase in notes and accounts payable |
6,015 | 5,177 | ||||||
Increase (decrease) in accrued income taxes |
9,066 | (8,817 | ) | |||||
Increase in other current liabilities |
11,111 | 6,010 | ||||||
Other, net |
(10,468 | ) | (10,725 | ) | ||||
Net cash provided by operating activities |
149,644 | 196,935 | ||||||
Cash flows from investing activities : |
||||||||
Payments for purchases of securities |
(71,449 | ) | (38,744 | ) | ||||
Sales and maturities of securities |
127,119 | 124,813 | ||||||
Acquisitions of businesses, net of cash acquired |
(756 | ) | (26,483 | ) | ||||
Proceeds from sales of investment in subsidiaries |
24,602 | | ||||||
Payments for purchases of property, plant and equipment, and intangible assets |
(72,966 | ) | (78,269 | ) | ||||
Proceeds from sales of property, plant and equipment, and intangible assets |
2,693 | 877 | ||||||
Deposit of negotiable certificate of deposits and time deposits |
(356,169 | ) | (372,798 | ) | ||||
Withdrawal of negotiable certificate of deposits and time deposits |
203,076 | 423,845 | ||||||
Other, net |
(7,853 | ) | (18,347 | ) | ||||
Net cash provided by (used in) investing activities |
(151,703 | ) | 14,894 | |||||
Cash flows from financing activities : |
||||||||
Increase (decrease) in short-term debt |
9,369 | (7,202 | ) | |||||
Proceeds from issuance of long-term debt |
1,928 | 5,000 | ||||||
Payments of long-term debt |
(13,361 | ) | (6,647 | ) | ||||
Dividends paid |
(20,632 | ) | (24,566 | ) | ||||
Purchases of treasury stock |
(251 | ) | (211 | ) | ||||
Reissuance of treasury stock |
7,666 | 7,031 | ||||||
Other, net |
(5,364 | ) | (1,476 | ) | ||||
Net cash used in financing activities |
(20,645 | ) | (28,071 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
4,103 | (18,380 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
(18,601 | ) | 165,378 | |||||
Cash and cash equivalents at beginning of year |
300,809 | 282,208 | ||||||
Cash and cash equivalents at end of year |
¥ | 282,208 | ¥ | 447,586 | ||||
23
SUPPLEMENTAL CASH FLOW INFORMATION
Yen in millions | ||||||||
Years ended March 31, | ||||||||
2007 | 2008 | |||||||
Cash paid during the year for : |
||||||||
Interest |
¥ | 1,603 | ¥ | 1,217 | ||||
Income taxes |
52,847 | 66,989 | ||||||
Acquisitions of businesses : |
||||||||
Fair value of assets acquired |
¥ | 1,151 | ¥ | 32,959 | ||||
Fair value of liabilities assumed |
(333 | ) | (5,537 | ) | ||||
Cash acquired |
(62 | ) | (939 | ) | ||||
¥ | 756 | ¥ | 26,483 | |||||
24
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) |
14 | AMERICAN TECHNICAL CERAMICS CORP. and others | ||
(Decrease) |
7 | 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 of cost or market, the cost being determined by the average method. All other inventories are mainly stated at the lower of cost or market, the cost being determined by the first-in, first-out method.
(2) Valuation of securities
Kyocera adopts SFAS No.115, Accounting for Certain Investments in Debt and Equity Securities. Held-to-maturity securities are recorded at amortized cost. Available-for-sale 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 the declining balance method over their estimated useful lives. Effective April 1, 2007, Kyocera Corporation and its domestic subsidiaries, as a result of taking the business situation into consideration, has adopted the 250 percent declining-balance depreciation method for buildings, machinery and equipment. Estimated useful lives and estimated salvage values were also changed in conjunction with this change. Under the provisions of SFAS No. 154 Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3, a change in depreciation method is treated as a change in estimate. The effect of the change in depreciation method will be reflected on a prospective basis beginning April 1, 2007, and prior period results will not be restated. Kyocera Corporation and its domestic subsidiaries believe that the change from the declining-balance depreciation method to the 250 percent declining-balance depreciation method will better reflect future business situation and will provide a better matching of costs and revenues over the assets estimated useful lives.
(4) Goodwill and other intangible assets
Kyocera adopts SFAS No. 142, Goodwill and Other Intangible Assets.
25
(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 SFAS No. 87, Employers Accounting for Pensions and SFAS 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 (FIN48) which clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with SFAS No. 109, Accounting for Income Taxes. FIN48 also provides guidance on derecognition, classification, interest and penalties, disclosure and transitional measures. Cumulative effect of applying FIN48, which was effective April 1, 2007, increased the opening balance of retained earnings by ¥3,968 million.
26
SEGMENT INFORMATION
1. Reporting segments :
Yen in millions | |||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||
2007 | 2008 | ||||||||||||||
Amount | Amount | Amount | % | ||||||||||||
Net sales : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 81,326 | ¥ | 81,309 | ¥ | (17 | ) | (0.0 | ) | ||||||
Semiconductor Parts Group |
152,292 | 154,538 | 2,246 | 1.5 | |||||||||||
Applied Ceramic Products Group |
131,103 | 149,942 | 18,839 | 14.4 | |||||||||||
Electronic Device Group |
286,156 | 294,201 | 8,045 | 2.8 | |||||||||||
Telecommunications Equipment Group |
251,183 | 220,817 | (30,366 | ) | (12.1 | ) | |||||||||
Information Equipment Group |
268,781 | 276,746 | 7,965 | 3.0 | |||||||||||
Others |
137,235 | 138,494 | 1,259 | 0.9 | |||||||||||
Adjustments and eliminations |
(24,179 | ) | (25,611 | ) | (1,432 | ) | | ||||||||
¥ | 1,283,897 | ¥ | 1,290,436 | ¥ | 6,539 | 0.5 | |||||||||
Operating profit : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 15,677 | ¥ | 11,167 | ¥ | (4,510 | ) | (28.8 | ) | ||||||
Semiconductor Parts Group |
22,210 | 20,027 | (2,183 | ) | (9.8 | ) | |||||||||
Applied Ceramic Products Group |
22,334 | 32,655 | 10,321 | 46.2 | |||||||||||
Electronic Device Group |
44,487 | 36,524 | (7,963 | ) | (17.9 | ) | |||||||||
Telecommunications Equipment Group |
291 | 6,786 | 6,495 | | |||||||||||
Information Equipment Group |
33,970 | 39,538 | 5,568 | 16.4 | |||||||||||
Others |
6,881 | 9,635 | 2,754 | 40.0 | |||||||||||
145,850 | 156,332 | 10,482 | 7.2 | ||||||||||||
Corporate |
8,569 | 12,497 | 3,928 | 45.8 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
2,621 | 6,091 | 3,470 | 132.4 | |||||||||||
Adjustments and eliminations |
(500 | ) | (78 | ) | 422 | | |||||||||
Income from continuing operations before income taxes and minority interests |
¥ | 156,540 | ¥ | 174,842 | ¥ | 18,302 | 11.7 | ||||||||
Segment assets : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 54,860 | ¥ | 53,713 | ¥ | (1,147 | ) | (2.1 | ) | ||||||
Semiconductor Parts Group |
106,359 | 100,041 | (6,318 | ) | (5.9 | ) | |||||||||
Applied Ceramic Products Group |
125,266 | 149,870 | 24,604 | 19.6 | |||||||||||
Electronic Device Group |
412,979 | 400,851 | (12,128 | ) | (2.9 | ) | |||||||||
Telecommunications Equipment Group |
92,584 | 66,191 | (26,393 | ) | (28.5 | ) | |||||||||
Information Equipment Group |
207,862 | 203,248 | (4,614 | ) | (2.2 | ) | |||||||||
Others |
133,072 | 131,946 | (1,126 | ) | (0.8 | ) | |||||||||
1,132,982 | 1,105,860 | (27,122 | ) | (2.4 | ) | ||||||||||
Corporate |
1,056,646 | 906,159 | (150,487 | ) | (14.2 | ) | |||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
10,093 | 16,753 | 6,660 | 66.0 | |||||||||||
Adjustments and eliminations |
(69,257 | ) | (52,026 | ) | 17,231 | | |||||||||
Total assets |
¥ | 2,130,464 | ¥ | 1,976,746 | ¥ | (153,718 | ) | (7.2 | ) | ||||||
Depreciation and amortization : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 4,500 | ¥ | 7,511 | ¥ | 3,011 | 66.9 | ||||||||
Semiconductor Parts Group |
12,533 | 14,647 | 2,114 | 16.9 | |||||||||||
Applied Ceramic Products Group |
8,097 | 9,685 | 1,588 | 19.6 | |||||||||||
Electronic Device Group |
21,537 | 24,627 | 3,090 | 14.3 | |||||||||||
Telecommunications Equipment Group |
9,075 | 8,753 | (322 | ) | (3.5 | ) | |||||||||
Information Equipment Group |
16,326 | 12,024 | (4,302 | ) | (26.4 | ) | |||||||||
Others |
7,419 | 6,922 | (497 | ) | (6.7 | ) | |||||||||
Corporate |
2,575 | 2,876 | 301 | 11.7 | |||||||||||
Total |
¥ | 82,062 | ¥ | 87,045 | ¥ | 4,983 | 6.1 | ||||||||
Capital expenditures : |
|||||||||||||||
Fine Ceramic Parts Group |
¥ | 7,447 | ¥ | 9,253 | ¥ | 1,806 | 24.3 | ||||||||
Semiconductor Parts Group |
11,432 | 8,752 | (2,680 | ) | (23.4 | ) | |||||||||
Applied Ceramic Products Group |
7,330 | 10,714 | 3,384 | 46.2 | |||||||||||
Electronic Device Group |
19,812 | 25,855 | 6,043 | 30.5 | |||||||||||
Telecommunications Equipment Group |
3,800 | 2,317 | (1,483 | ) | (39.0 | ) | |||||||||
Information Equipment Group |
11,962 | 15,475 | 3,513 | 29.4 | |||||||||||
Others |
5,774 | 6,056 | 282 | 4.9 | |||||||||||
Corporate |
2,339 | 6,679 | 4,340 | 185.5 | |||||||||||
Total |
¥ | 69,896 | ¥ | 85,101 | ¥ | 15,205 | 21.8 | ||||||||
27
2. Geographic segments (Sales and Operating profits by geographic area) :
Yen in millions | |||||||||||||||
Years ended March 31, | |||||||||||||||
2007 | 2008 | Increase (Decrease) | |||||||||||||
Amount | Amount | Amount | % | ||||||||||||
Net sales: |
|||||||||||||||
Japan |
¥ | 523,869 | ¥ | 538,729 | ¥ | 14,860 | 2.8 | ||||||||
Intra-group sales and transfer between geographic areas |
388,879 | 387,196 | (1,683 | ) | (0.4 | ) | |||||||||
912,748 | 925,925 | 13,177 | 1.4 | ||||||||||||
United States of America |
319,033 | 282,677 | (36,356 | ) | (11.4 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
37,357 | 30,542 | (6,815 | ) | (18.2 | ) | |||||||||
356,390 | 313,219 | (43,171 | ) | (12.1 | ) | ||||||||||
Asia |
195,319 | 200,675 | 5,356 | 2.7 | |||||||||||
Intra-group sales and transfer between geographic areas |
152,219 | 178,184 | 25,965 | 17.1 | |||||||||||
347,538 | 378,859 | 31,321 | 9.0 | ||||||||||||
Europe |
219,695 | 243,406 | 23,711 | 10.8 | |||||||||||
Intra-group sales and transfer between geographic areas |
40,040 | 39,172 | (868 | ) | (2.2 | ) | |||||||||
259,735 | 282,578 | 22,843 | 8.8 | ||||||||||||
Others |
25,981 | 24,949 | (1,032 | ) | (4.0 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
11,432 | 15,076 | 3,644 | 31.9 | |||||||||||
37,413 | 40,025 | 2,612 | 7.0 | ||||||||||||
Adjustments and eliminations |
(629,927 | ) | (650,170 | ) | (20,243 | ) | | ||||||||
¥ | 1,283,897 | ¥ | 1,290,436 | ¥ | 6,539 | 0.5 | |||||||||
Operating Profits : |
|||||||||||||||
Japan |
¥ | 96,804 | ¥ | 101,176 | ¥ | 4,372 | 4.5 | ||||||||
United States of America |
23,521 | 11,694 | (11,827 | ) | (50.3 | ) | |||||||||
Asia |
19,165 | 24,108 | 4,943 | 25.8 | |||||||||||
Europe |
10,218 | 12,399 | 2,181 | 21.3 | |||||||||||
Others |
1,086 | 2,922 | 1,836 | 169.1 | |||||||||||
150,794 | 152,299 | 1,505 | 1.0 | ||||||||||||
Adjustments and eliminations |
(5,444 | ) | 3,955 | 9,399 | | ||||||||||
145,350 | 156,254 | 10,904 | 7.5 | ||||||||||||
Corporate |
8,569 | 12,497 | 3,928 | 45.8 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
2,621 | 6,091 | 3,470 | 132.4 | |||||||||||
Income from continuing operations before income taxes and minority interests |
¥ | 156,540 | ¥ | 174,842 | ¥ | 18,302 | 11.7 | ||||||||
28
3. Geographic segments (Sales by region) :
Yen in millions | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||
2007 | 2008 | Increase (Decrease) | |||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||
Japan |
¥ | 496,959 | 38.7 | ¥ | 507,837 | 39.4 | ¥ | 10,878 | 2.2 | ||||||||||
United States of America |
274,361 | 21.4 | 248,760 | 19.3 | (25,601 | ) | (9.3 | ) | |||||||||||
Asia |
216,663 | 16.9 | 232,425 | 18.0 | 15,762 | 7.3 | |||||||||||||
Europe |
210,726 | 16.4 | 224,066 | 17.3 | 13,340 | 6.3 | |||||||||||||
Others |
85,188 | 6.6 | 77,348 | 6.0 | (7,840 | ) | (9.2 | ) | |||||||||||
Net sales |
¥ | 1,283,897 | 100.0 | ¥ | 1,290,436 | 100.0 | ¥ | 6,539 | 0.5 | ||||||||||
Sales outside Japan |
¥ | 786,938 | ¥ | 782,599 | ¥ | (4,339 | ) | (0.6 | ) | ||||||||||
Sales outside Japan to net sales |
61.3 | % | 60.6 | % |
29
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Investments in debt and equity securities at March 31, 2007 and 2008, included in short-term investments (current assets) and
securities and other investments (non-current assets) are summarized as follows :
Yen in millions | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||
Cost | Aggregate fair values |
Gross unrealized gains |
Gross unrealized losses |
Cost | Aggregate fair values |
Gross unrealized gains |
Gross unrealized losses | |||||||||||||||||
Available-for-sale securities : |
||||||||||||||||||||||||
Corporate debt securities |
¥ | 3,842 | ¥ | 4,033 | ¥ | 194 | ¥ | 3 | ¥ | 9,111 | ¥ | 8,877 | ¥ | 46 | ¥ | 280 | ||||||||
Other debt securities |
74,563 | 74,574 | 71 | 60 | 5,632 | 5,471 | 2 | 163 | ||||||||||||||||
Equity securities |
272,653 | 585,274 | 312,724 | 103 | 275,984 | 386,162 | 113,327 | 3,149 | ||||||||||||||||
Total available-for-sale securities |
351,058 | 663,881 | 312,989 | 166 | 290,727 | 400,510 | 113,375 | 3,592 | ||||||||||||||||
Held-to-maturity securities : |
||||||||||||||||||||||||
Other debt securities |
33,512 | 33,447 | | 65 | 15,904 | 15,989 | 85 | | ||||||||||||||||
Total held-to-maturity securities |
33,512 | 33,447 | | 65 | 15,904 | 15,989 | 85 | | ||||||||||||||||
Total investments in debt and equity securities |
¥ | 384,570 | ¥ | 697,328 | ¥ | 312,989 | ¥ | 231 | ¥ | 306,631 | ¥ | 416,499 | ¥ | 113,460 | ¥ | 3,592 | ||||||||
Note:
Cost represents amortized cost for held-to-maturity securities and acquisition cost for available-for-sale securities. The cost basis of the 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 | ||||||
Years ended March 31, | ||||||
2007 | 2008 | |||||
Stockholders equity per share |
¥ | 8,028.45 | ¥ | 7,659.72 | ||
Basic earnings per share |
566.03 | 566.58 | ||||
Diluted earnings per share |
564.79 | 565.80 |
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 | ||||
Years ended March 31, | ||||
2007 | 2008 | |||
Income from continuing operations |
¥101,329 | ¥107,244 | ||
Income from discontinued operations |
5,175 | | ||
Net income |
106,504 | 107,244 | ||
Basic earnings per share |
||||
Income from continuing operations |
538.52 | 566.58 | ||
Income from discontinued operations |
27.51 | | ||
Net income |
566.03 | 566.58 | ||
Diluted earnings per share |
||||
Income from continuing operations |
537.35 | 565.80 | ||
Income from discontinued operations |
27.44 | | ||
Net income |
564.79 | 565.80 | ||
Basic weighted average number of shares outstanding (shares in thousands) |
188,160 | 189,283 | ||
Dilutive effect of stock options (shares in thousands) |
413 | 261 | ||
Diluted weighted average number of shares outstanding (shares in thousands) |
188,573 | 189,544 |
31
SUBSEQUENT EVENTS
[Acquisition of Mobile Phone Related Business of SANYO Electric Co., Ltd.]
Kyocera Corporation has agreed to acquire the spun-off mobile phone related business, including related assets and liabilities from SANYO Electric Co., Ltd. (SANYO) on April 1, 2008.
(1) | Name of acquired company and, reason for the acquisition, description of the acquired business, name of the selling party, effective dates, legal structure of corporate consolidation, name of the company after consolidation and ratio of voting rights acquired: |
(i) | Reason for corporate acquisition: |
Kyocera views the communication equipment related business, including mobile phones, PHS and wireless communication systems, as one of its core businesses which will aim to establish a highly profitable Company. Through this acquisition,
Kyocera seeks to acquire the customer base of SANYO in Japan and North America, and expand the size of its businesses as well as integrate SANYOs development capabilities and design technologies with Kyoceras management resources in order to succeed over the competition in a very competitive industry.
(ii) | Name of the selling party: SANYO Electric Co., Ltd. |
(iii) | Substance of business acquisition: Development, manufacture and sale of mobile phones, PHS and wireless communication systems, etc. |
(iv) | Effective Date of corporate acquisition: April 1, 2008 |
(v) | Legal structure of corporate acquisition: The acquisition will be completed principally by means of a corporate split, being Kyocera Corporation, the acquiring corporation. |
(2) | Purchase price consideration related to the acquired corporation or acquired business and related breakdown. In case shares are issued for the acquisition as a part of the purchase consideration, exchange ratio by type, if applicable, related calculation method, number of exchanged shares and related value. Description as to whether or not the acquisition cost is calculated based on the share prices as at the exchange date. |
(i) | Acquisition costs and breakdown thereof: Not yet determined, as the purchase price allocation calculations and the valuation of the identifiable assets and liabilities are under review. |
(ii) | Distribution of shares: There was not exchange of shares on this acquisition. |
(3) | Amount of positive or negative goodwill taking place, cause therefor, method of depreciation and depreciation period |
Not yet determined, as the purchase price allocation calculations and the valuation of the identifiable assets and liabilities are under review.
32
(4) | Breakdown and amounts of assets acquired and liabilities assumed at the acquisition date |
Not yet determined, as the purchase price allocation calculations and the valuation of the identifiable assets and liabilities are under review.
(5) | Purchase price consideration subject to conditions contemplated in the business combination agreement and related accounting policy |
(i) | Purchase price considerations subject to conditions: |
The agreed acquisition cost was based on the amount after subtracting expected cash and deposits of the acquired business from ¥50 billion, and subject to further adjustments, at the acquisition (spin off) date, such other as cash and bank deposits, interest bearing debt, accounts receivable from and payable to Kyocera and some other agreed adjustments.
(ii) | Policy of accounting method to be applied subsequently: |
Increase or decrease in the paid amount shall be reflected in the acquisition costs as an adjustment to goodwill.
(6) | Account description and amount of acquisition cost allocated to research and development cost which are expensed |
Not yet determined, as the purchase price allocation calculations and the valuation of the identifiable assets and liabilities are under review.
(7) | In the case that most of the acquisition cost are allocated to intangible assets, breakdown, amount and type of those intangible assets other than goodwill; weighted average amortization period for those intangible assets, or amortization period of major intangible assets. |
Not yet determined, as the purchase price allocation calculations and the valuation of the identifiable assets and liabilities are under review.
33
BALANCE SHEETS
Yen in millions | ||||||||||||||||
March 31, | Increase (Decrease) |
|||||||||||||||
2007 | 2008 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Current assets : |
||||||||||||||||
Cash and bank deposits |
¥ | 203,301 | ¥ | 123,465 | ¥ | (79,836 | ) | |||||||||
Trade notes receivable |
41,423 | 18,658 | (22,765 | ) | ||||||||||||
Trade accounts receivable |
108,685 | 113,025 | 4,340 | |||||||||||||
Marketable securities |
22,937 | 223,900 | 200,963 | |||||||||||||
Finished goods and merchandise |
17,204 | 21,246 | 4,042 | |||||||||||||
Raw materials |
16,560 | 15,232 | (1,328 | ) | ||||||||||||
Work in process |
20,541 | 19,978 | (563 | ) | ||||||||||||
Supplies |
706 | 1,527 | 821 | |||||||||||||
Advance payments |
10,100 | 19,415 | 9,315 | |||||||||||||
Prepaid expenses |
443 | 87 | (356 | ) | ||||||||||||
Deferred income taxes |
17,193 | 13,915 | (3,278 | ) | ||||||||||||
Short-term loans to subsidiaries |
16,880 | 8,552 | (8,328 | ) | ||||||||||||
Other accounts receivable |
8,291 | 12,498 | 4,207 | |||||||||||||
Other current assets |
891 | 2,500 | 1,609 | |||||||||||||
Allowances for doubtful accounts |
(173 | ) | (1,022 | ) | (849 | ) | ||||||||||
Total current assets |
484,982 | 30.1 | 592,976 | 40.4 | 107,994 | |||||||||||
Non-current assets : |
||||||||||||||||
Tangible fixed assets : |
||||||||||||||||
Buildings |
34,921 | 38,108 | 3,187 | |||||||||||||
Structures |
2,091 | 1,967 | (124 | ) | ||||||||||||
Machinery and equipment |
44,896 | 42,701 | (2,195 | ) | ||||||||||||
Vehicles |
21 | 19 | (2 | ) | ||||||||||||
Tools, furniture and fixtures |
8,139 | 7,823 | (316 | ) | ||||||||||||
Land |
33,372 | 33,871 | 499 | |||||||||||||
Construction in progress |
900 | 1,432 | 532 | |||||||||||||
Total tangible fixed assets |
124,340 | 7.7 | 125,921 | 8.6 | 1,581 | |||||||||||
Intangible assets : |
||||||||||||||||
Patent rights |
9,518 | 5,335 | (4,183 | ) | ||||||||||||
Trademark |
124 | 104 | (20 | ) | ||||||||||||
Software |
776 | 633 | (143 | ) | ||||||||||||
Other intangible assets |
13 | 14 | 1 | |||||||||||||
Total intangible assets |
10,431 | 0.6 | 6,086 | 0.4 | (4,345 | ) | ||||||||||
Investments and other assets : |
||||||||||||||||
Investments in securities |
648,538 | 400,838 | (247,700 | ) | ||||||||||||
Investments in subsidiaries and affiliates |
260,775 | 260,833 | 58 | |||||||||||||
Investments in subsidiaries and affiliates other than equity securities |
26,685 | 27,623 | 938 | |||||||||||||
Long-term loans to subsidiaries |
20,633 | 23,181 | 2,548 | |||||||||||||
Impaired loans |
238 | 229 | (9 | ) | ||||||||||||
Long-term prepaid expenses |
2,458 | 1,521 | (937 | ) | ||||||||||||
Long-term deposits |
31,000 | 25,000 | (6,000 | ) | ||||||||||||
Security deposits |
1,823 | 1,773 | (50 | ) | ||||||||||||
Other investments |
289 | 242 | (47 | ) | ||||||||||||
Allowances for doubtful accounts |
(301 | ) | (263 | ) | 38 | |||||||||||
Total investments and other assets |
992,138 | 61.6 | 740,977 | 50.6 | (251,161 | ) | ||||||||||
Total non-current assets |
1,126,909 | 69.9 | 872,984 | 59.6 | (253,925 | ) | ||||||||||
Total assets |
¥ | 1,611,891 | 100.0 | ¥ | 1,465,960 | 100.0 | ¥ | (145,931 | ) | |||||||
34
Yen in millions | ||||||||||||||||||
March 31, | ||||||||||||||||||
2007 | 2008 | Increase (Decrease) |
||||||||||||||||
Amount | % | Amount | % | |||||||||||||||
Current liabilities : |
||||||||||||||||||
Trade accounts payable |
¥ | 55,561 | ¥ | 53,146 | ¥ | (2,415 | ) | |||||||||||
Other payables |
21,774 | 38,312 | 16,538 | |||||||||||||||
Accrued expenses |
8,356 | 8,288 | (68 | ) | ||||||||||||||
Income taxes payables |
12,550 | 13,616 | 1,066 | |||||||||||||||
Advance received |
532 | 604 | 72 | |||||||||||||||
Deposits received |
1,916 | 2,378 | 462 | |||||||||||||||
Unearned income |
10 | 15 | 5 | |||||||||||||||
Accrued bonuses |
11,152 | 11,726 | 574 | |||||||||||||||
Accrued bonuses for directors |
136 | 133 | (3 | ) | ||||||||||||||
Warranty reserves |
5,045 | 5,363 | 318 | |||||||||||||||
Allowances for sales returns |
114 | 149 | 35 | |||||||||||||||
Other current liabilities |
125 | | (125 | ) | ||||||||||||||
Total current liabilities |
117,271 | 7.3 | 133,730 | 9.1 | 16,459 | |||||||||||||
Non-current liabilities : |
||||||||||||||||||
Long-term accounts payable |
2,953 | 703 | (2,250 | ) | ||||||||||||||
Deferred income taxes |
191,441 | 102,102 | (89,339 | ) | ||||||||||||||
Accrued pension and severance costs |
12,705 | 8,809 | (3,896 | ) | ||||||||||||||
Retirement allowances for directors and executive officers |
1,022 | 1,030 | 8 | |||||||||||||||
Other non-current liabilities |
138 | 171 | 33 | |||||||||||||||
Total non-current liabilities |
208,259 | 12.9 | 112,815 | 7.7 | (95,444 | ) | ||||||||||||
Total liabilities |
325,530 | 20.2 | 246,545 | 16.8 | (78,985 | ) | ||||||||||||
Net assets |
||||||||||||||||||
Stockholders equity : |
||||||||||||||||||
Common stock |
115,703 | 7.2 | 115,703 | 7.9 | | |||||||||||||
Capital surplus : |
||||||||||||||||||
Additional paid-in capital |
192,555 | 192,555 | | |||||||||||||||
Other capital surplus |
127 | 381 | 254 | |||||||||||||||
Total capital surplus |
192,682 | 12.0 | 192,936 | 13.2 | 254 | |||||||||||||
Retained earnings : |
||||||||||||||||||
Legal reserves |
17,207 | 17,207 | | |||||||||||||||
Other retained earnings : |
671,140 | 716,316 | 45,176 | |||||||||||||||
Reserve for special depreciation |
991 | 555 | (436 | ) | ||||||||||||||
Reserve for research and development |
1,000 | 1,000 | | |||||||||||||||
Reserve for dividends |
1,000 | 1,000 | | |||||||||||||||
Reserve for retirement benefits |
300 | 300 | | |||||||||||||||
Reserve for overseas investments |
1,000 | 1,000 | | |||||||||||||||
General reserve |
603,837 | 643,837 | 40,000 | |||||||||||||||
Unappropriated retained earnings |
63,012 | 68,624 | 5,612 | |||||||||||||||
Total retained earnings |
688,347 | 42.7 | 733,523 | 50.0 | 45,176 | |||||||||||||
Treasury stock, at cost |
(21,855 | ) | (1.4 | ) | (15,289 | ) | (1.0 | ) | 6,566 | |||||||||
Total stockholders equity |
974,877 | 60.5 | 1,026,873 | 70.1 | 51,996 | |||||||||||||
Difference of appreciation and conversion |
||||||||||||||||||
Net unrealized gains on other securities |
311,484 | 19.3 | 192,542 | 13.1 | (118,942 | ) | ||||||||||||
Total net assets |
1,286,361 | 79.8 | 1,219,415 | 83.2 | (66,946 | ) | ||||||||||||
Total liabilities and net assets |
¥ | 1,611,891 | 100.0 | ¥ | 1,465,960 | 100.0 | ¥ | (145,931 | ) | |||||||||
35
STATEMENTS OF INCOME
Yen in millions | |||||||||||||||||||||
Years ended March 31, | Increase (Decrease) |
||||||||||||||||||||
2007 | 2008 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
Net sales |
¥ | 531,557 | 100.0 | ¥ | 539,320 | 100.0 | ¥ | 7,763 | 1.5 | ||||||||||||
Cost of sales |
407,121 | 76.6 | 413,420 | 76.7 | 6,299 | 1.5 | |||||||||||||||
Gross profit |
124,436 | 23.4 | 125,900 | 23.3 | 1,464 | 1.2 | |||||||||||||||
Selling, general and administrative expenses |
75,004 | 14.1 | 77,349 | 14.3 | 2,345 | 3.1 | |||||||||||||||
Profit from operations |
49,432 | 9.3 | 48,551 | 9.0 | (881 | ) | (1.8 | ) | |||||||||||||
Non-operating income : |
|||||||||||||||||||||
Interest and dividend income |
25,090 | 4.7 | 35,839 | 6.6 | 10,749 | 42.8 | |||||||||||||||
Foreign currency transaction gains, net |
1,021 | 0.2 | 1,200 | 0.2 | 179 | 17.6 | |||||||||||||||
Other non-operating income |
6,730 | 1.3 | 7,860 | 1.5 | 1,130 | 16.8 | |||||||||||||||
Total non-operating income |
32,841 | 6.2 | 44,899 | 8.3 | 12,058 | 36.7 | |||||||||||||||
Non-operating expenses : |
|||||||||||||||||||||
Interest expense |
14 | 0.0 | 20 | 0.0 | 6 | 45.3 | |||||||||||||||
Loss on disposal of inventories |
7,235 | 1.4 | 1,508 | 0.3 | (5,727 | ) | (79.1 | ) | |||||||||||||
Loss on sale of securities |
| | 471 | 0.1 | 471 | | |||||||||||||||
Loss on reduction of fixed assets |
| | 636 | 0.1 | 636 | | |||||||||||||||
Other non-operating expenses |
1,295 | 0.2 | 604 | 0.1 | (691 | ) | (53.4 | ) | |||||||||||||
Total non-operating expenses |
8,544 | 1.6 | 3,239 | 0.6 | (5,305 | ) | (62.1 | ) | |||||||||||||
Recurring profit |
73,729 | 13.9 | 90,211 | 16.7 | 16,482 | 22.4 | |||||||||||||||
Non-recurring gain : |
|||||||||||||||||||||
Gain on sale of tangible fixed assets |
327 | 0.0 | 46 | 0.0 | (281 | ) | (85.8 | ) | |||||||||||||
Reversal of allowance for doubtful accounts |
7 | 0.0 | 7 | 0.0 | 0 | 2.6 | |||||||||||||||
Repatriation of settlement with foreign tax authorities |
| | 1,832 | 0.3 | 1,832 | | |||||||||||||||
Gain on sale of investments in a subsidiary and an affiliate |
9,084 | 1.7 | | | (9,084 | ) | | ||||||||||||||
Other non-recurring gain |
1,987 | 0.4 | 375 | 0.1 | (1,612 | ) | (81.1 | ) | |||||||||||||
Total non-recurring gain |
11,405 | 2.1 | 2,260 | 0.4 | (9,145 | ) | (80.2 | ) | |||||||||||||
Non-recurring loss : |
|||||||||||||||||||||
Depreciation expense |
| | 2,851 | 0.5 | 2,851 | | |||||||||||||||
Loss on sale and disposal of tangible fixed assets |
951 | 0.2 | 671 | 0.1 | (280 | ) | (29.5 | ) | |||||||||||||
Loss on impairment of investments in subsidiaries and affiliates |
3,166 | 0.6 | | | (3,166 | ) | | ||||||||||||||
Other non-recurring loss |
344 | 0.0 | 102 | 0.0 | (242 | ) | (70.4 | ) | |||||||||||||
Total non-recurring loss |
4,461 | 0.8 | 3,624 | 0.6 | (837 | ) | (18.8 | ) | |||||||||||||
Income before income taxes |
80,673 | 15.2 | 88,847 | 16.5 | 8,174 | 10.1 | |||||||||||||||
Income taxes current |
23,814 | 4.5 | 26,837 | 5.0 | 3,023 | 12.7 | |||||||||||||||
Refund of income taxes previous years |
(4,305 | ) | (0.8 | ) | (2,442 | ) | (0.5 | ) | 1,863 | | |||||||||||
Income taxes deferred |
(865 | ) | (0.2 | ) | (3,407 | ) | (0.6 | ) | (2,542 | ) | | ||||||||||
Net income |
¥ | 62,029 | 11.7 | ¥ | 67,859 | 12.6 | ¥ | 5,830 | 9.4 | ||||||||||||
36
STATEMENT OF CHANGES IN NET ASSETS
Yen in millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended March 31, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders equity | Difference of appreciation and conversion |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital surplus | Retained earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other retained earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Other capital surplus |
Total capital surplus |
Legal reserve |
Reserve for special depre- ciation |
Reserve for research and develop- ment |
Reserve for dividends |
Reserve for retire- ment benefits |
Reserve for overseas invest- ments |
General reserve |
Unappro- priated retained earnings |
Total retained earnings |
Treasury stock, at cost |
Total stock- holders equity |
Net unrealized gains on other securities |
Total unrealized gain (loss) on appreciation and conversion |
Total net assets |
|||||||||||||||||||||||||||||||||||||||||||
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
37
STATEMENT OF CHANGES IN NET ASSETS
Yen in millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended March 31, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders equity | Difference of appreciation and conversion |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital surplus | Retained earnings | Total net assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other retained earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Other capital surplus |
Total capital surplus |
Legal reserve |
Reserve for special depre- ciation |
Reserve for research and develop- ment |
Reserve for dividends |
Reserve for retire- ment benefits |
Reserve for overseas invest- ments |
General reserve |
Unappro- priated retained earnings |
Total retained earnings |
Treasury stock, at cost |
Total stock- holders equity |
Net unrealized gains on other securities |
Total unrealized gain (loss) on appreciation and conversion |
||||||||||||||||||||||||||||||||||||||||||||||
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 |
| | | | | 31 | | | | | | (31 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Reversal of reserve for special depreciation |
| | | | | (467 | ) | | | | | | 467 | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Appropriation to general reserve |
| | | | | | | | | | 40,000 | (40,000 | ) | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Dividends |
| | | | | | | | | | | (22,684 | ) | (22,684 | ) | | (22,684 | ) | | | (22,684 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income |
| | | | | | | | | | | 67,859 | 67,859 | | 67,859 | | | 67,859 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
| | | | | | | | | | | | | (211 | ) | (211 | ) | | | (211 | ) | |||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock |
| | 254 | 254 | | | | | | | | | | 6,777 | 7,031 | | | 7,031 | ||||||||||||||||||||||||||||||||||||||||||||
Net change in items other than stockholders equity |
| | | | | | | | | | | | | | | (118,942 | ) | (118,942 | ) | (118,942 | ) | |||||||||||||||||||||||||||||||||||||||||
Total changes in net assets |
| | 254 | 254 | | (436 | ) | | | | | 40,000 | 5,612 | 45,176 | 6,566 | 51,996 | (118,942 | ) | (118,942 | ) | (66,946 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2008 |
¥ | 115,703 | ¥ | 192,555 | ¥ | 381 | ¥ | 192,936 | ¥ | 17,207 | ¥ | 555 | ¥ | 1,000 | ¥ | 1,000 | ¥ | 300 | ¥ | 1,000 | ¥ | 643,837 | ¥ | 68,624 | ¥ | 733,523 | ¥ | (15,289 | ) | ¥ | 1,026,873 | ¥ | 192,542 | ¥ | 192,542 | ¥ | 1,219,415 | |||||||||||||||||||||||||
38
Appendix
1. Planned Change in Corporate Auditors
On April 25, 2008, Board of Directors of Kyocera Corporation has decided to change its corporate auditors as follows. This change will be resolved at the shareholders meeting which will be held on June 26, 2008.
1) Candidates for Corporate Auditors
Full-time Corporate Auditor:
Kokichi Ishibitsu (newly-appointed)
Corporate Auditors:
Osamu Nishieda (reappointed)
Kazuo Yoshida (newly-appointed)
2) Retiring Corporate Auditors
Full-time Corporate Auditor:
Yasuo Akashi
Corporate Auditor:
Shinji Kurihara
2. Consolidated Orders and Production by Reporting Segment
Consolidated Orders by Reporting Segment
(Yen in millions) | |||||||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||||||
2007 | 2008 | ||||||||||||||||
Amount | % of total |
Amount | % of total |
||||||||||||||
Fine Ceramic Parts Group |
¥ | 81,287 | 6.3 | ¥ | 82,028 | 6.4 | 0.9 | ||||||||||
Semiconductor Parts Group |
148,467 | 11.6 | 155,057 | 12.1 | 4.4 | ||||||||||||
Applied Ceramic Products Group |
132,577 | 10.3 | 152,617 | 11.9 | 15.1 | ||||||||||||
Electronic Device Group |
297,699 | 23.2 | 298,144 | 23.2 | 0.1 | ||||||||||||
Total Components Business |
660,030 | 51.4 | 687,846 | 53.6 | 4.2 | ||||||||||||
Telecommunications Equipment Group |
243,864 | 19.0 | 207,885 | 16.2 | (14.8 | ) | |||||||||||
Information Equipment Group |
268,929 | 21.0 | 276,712 | 21.5 | 2.9 | ||||||||||||
Total Equipment Business |
512,793 | 40.0 | 484,597 | 37.7 | (5.5 | ) | |||||||||||
Others |
134,365 | 10.5 | 135,495 | 10.6 | 0.8 | ||||||||||||
Adjustments and eliminations |
(23,573 | ) | (1.9 | ) | (24,048 | ) | (1.9 | ) | | ||||||||
Orders |
¥ | 1,283,615 | 100.0 | ¥ | 1,283,890 | 100.0 | 0.0 | ||||||||||
Note 1. From April 1, 2007, the Optical Equipment Group, previously a separate reporting segment, has been reclassified into Others. Accordingly, orders for fiscal 2007 have been retroactively reclassified.
Note 2. For the reasons set forth in Note 1 above, orders of Others in fiscal 2007 increased by ¥11,609 million and Adjustments and eliminations increased by ¥(2) million compared with those previously announced.
39
Consolidated Production by Reporting Segment
(Yen in millions) | |||||||||||||
Years ended March 31, | Increase (Decrease) (%) |
||||||||||||
2007 | 2008 | ||||||||||||
Amount | % of total |
Amount | % of total |
||||||||||
Fine Ceramic Parts Group |
¥ | 83,045 | 6.4 | ¥ | 81,683 | 6.4 | (1.6 | ) | |||||
Semiconductor Parts Group |
152,425 | 11.8 | 155,949 | 12.3 | 2.3 | ||||||||
Applied Ceramic Products Group |
135,137 | 10.5 | 155,933 | 12.3 | 15.4 | ||||||||
Electronic Device Group |
290,282 | 22.5 | 285,901 | 22.6 | (1.5 | ) | |||||||
Total Components Business |
660,889 | 51.2 | 679,466 | 53.6 | 2.8 | ||||||||
Telecommunications Equipment Group |
253,184 | 19.6 | 215,282 | 17.0 | (15.0 | ) | |||||||
Information Equipment Group |
273,975 | 21.3 | 270,120 | 21.3 | (1.4 | ) | |||||||
Total Equipment Business |
527,159 | 40.9 | 485,402 | 38.3 | (7.9 | ) | |||||||
Others |
101,263 | 7.9 | 103,369 | 8.1 | 2.1 | ||||||||
Production |
¥ | 1,289,311 | 100.0 | ¥ | 1,268,237 | 100.0 | (1.6 | ) | |||||
Note 3. For the reasons set forth in Note 1 on the previous page, production of Others in fiscal 2007 increased by ¥11,499 million compared with those previously announced.
40
April 25, 2008
KYOCERA CORPORATION | ||
Consolidated Financial Highlights Results for the Year Ended March 31, 2008 |
(Yen in millions, except per share amounts, exchange rates and the number of employees) | ||||||
Years ended March 31, | Increase (Decrease) (%) | |||||
2007 | 2008 | |||||
Net sales |
1,283,897 | 1,290,436 | 0.5 | |||
Profit from operations |
135,102 | 152,420 | 12.8 | |||
Income from continuing operations before income taxes |
156,540 | 174,842 | 11.7 | |||
Net income |
106,504 | 107,244 | 0.7 | |||
Average exchange rates : |
||||||
US$ |
117 | 114 | | |||
Euro |
150 | 162 | | |||
Earnings per share : |
||||||
Net income |
||||||
Basic |
566.03 | 566.58 | 0.1 | |||
Diluted |
564.79 | 565.80 | 0.2 | |||
Capital expenditures |
69,896 | 85,101 | 21.8 | |||
Depreciation |
70,155 | 75,630 | 7.8 | |||
R&D expenses |
61,100 | 61,605 | 0.8 | |||
Total assets |
2,130,464 | 1,976,746 | | |||
Stockholders equity |
1,514,560 | 1,451,165 | | |||
Sales of products manufactured outside Japan to net sales (%) |
34.0 | 33.4 | |
41