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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February 2018

Commission File Number: 1-07952

KYOCERA CORPORATION

(Translation of registrant’s name into English)

6, Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

(Address of principal executive office)

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  ☒        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):  ☐


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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

(Registrant)

/s/ S HOICHI A OKI

(Signature)
Shoichi Aoki
Director,
Managing Executive Officer and
General Manager of
Corporate Financial and Accounting Group

Date: February 1, 2018


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Information furnished on this form:

EXHIBITS

 

Exhibit

    Number    

   

1.

  Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2017


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LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Nine Months Ended December 31, 2017

The consolidated financial information is prepared in accordance with generally accepted accounting principles in the United States of America.

1. Consolidated Financial Results for the Nine Months Ended December 31, 2017

 

(1) Consolidated results of operations

          (% of change from previous period)  
     Net sales     Profit from operations      Income before income taxes      Net income attributable to
Kyocera Corporation’s
shareholders
 
     Million yen      %     Million yen      %      Million yen      %          Million yen          %  

Nine months ended December 31, 2017

     1,145,016        12.9       108,984        62.4        144,864        46.8        90,267        27.4  

Nine months ended December 31, 2016

     1,014,628        (7.2     67,102        1.6        98,706        1.4        70,852        19.1  

(Note) Comprehensive income:

99,687 million yen for the nine months ended December 31, 2017, 49.2% of change from previous period

66,794 million yen for the nine months ended December 31, 2016, (58.2)% of change from previous period

 

                   Net income attributable to
Kyocera Corporation’s

shareholders
per share - Basic
     Net income attributable to
Kyocera Corporation’s

shareholders
per share - Diluted
 
                   Yen      Yen  

Nine months ended December 31, 2017

           245.49        245.49  

Nine months ended December 31, 2016

           192.88        192.88  

 

(2) Consolidated financial condition

 

  
     Total assets      Total equity      Kyocera Corporation’s
shareholders’ equity
     Kyocera Corporation’s
shareholders’ equity
to total assets
 
     Million yen      Million yen      Million yen      %  

December 31, 2017

     3,201,583        2,472,081        2,386,003        74.5  

March 31, 2017

     3,110,470        2,418,909        2,334,219        75.1  

2. Dividends

 

    Dividends per share  
  End of
first quarter
    End of
second quarter
    End of
third quarter
    Year-end     Annual  
    Yen     Yen     Yen     Yen     Yen  

Year ended March 31, 2017

          50.00             60.00       110.00  

Year ending March 31, 2018

          60.00             60.00       120.00  

Note:

Year-end and annual dividends per share for the year ending March 31, 2018 are the forecasts at the date of the submission of this report.

 

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3. Consolidated Financial Forecasts for the Year Ending March 31, 2018

 

     (% of change from previous year)  
     Net sales      Profit from
operations
     Income before
income taxes
     Net income
attributable to
Kyocera Corporation’s
shareholders
     Net income
attributable to
Kyocera Corporation’s
shareholders

per share
 
     Million yen      %      Million yen      %      Million yen      %      Million yen      %      Yen  

Year ending March 31, 2018

     1,560,000        9.6        135,000        29.1        170,000        23.3        108,000        4.0        293.71  

Note:

Forecast of earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the diluted average number of shares outstanding during the nine months ended December 31, 2017.

Notes:

(1) Increase or decrease in significant subsidiaries during the nine months ended December 31, 2017: Yes

New companies : Not applicable

Removal companies : 1 (Kyocera Crystal Device Corporation)

Please refer to “(3) Notes to the Consolidated Financial Statements” on page 13.

(2) Adoption of concise quarterly accounting method or procedure: Not applicable

(3) Changes in accounting policies:

(i)   Changes due to adoption of new accounting standards: Yes

(ii)  Changes due to other than adoption of new accounting standards: Not applicable

Please refer to “(3) Notes to the Consolidated Financial Statements” on page 13.

(4) Number of shares (common stock):

(i)   Number of shares issued:

 

377,618,580 shares at December 31, 2017

   377,618,580 shares at March 31, 2017

(ii)  Number of treasury stock:

 

9,910,450 shares at December 31, 2017

   9,906,197 shares at March 31, 2017

(iii) Average number of shares outstanding:

 

367,710,007 shares for the nine months ended
December 31, 2017

  

367,333,543 shares for the nine months ended
December 31, 2016

Presentation of Situation of Review Procedure

The consolidated financial information included in this Form 6-K is out of scope of audit procedure.

 

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Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

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 the following:

 

(1) General conditions in the Japanese or global economy;

 

(2) Unexpected changes in economic, political and legal conditions in countries where we operate;

 

(3) Various export risks which may affect the significant percentage of our revenues derived from overseas sales;

 

(4) The effect of foreign exchange fluctuations on our results of operations;

 

(5) Intense competitive pressures to which our products are subject;

 

(6) Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera’s production activities;

 

(7) Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

 

(8) Shortages and rising costs of electricity affecting our production and sales activities;

 

(9) The possibility that future initiatives and in-process research and development may not produce the desired results;

 

(10) Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities;

 

(11) Inability to secure skilled employees, particularly engineering and technical personnel;

 

(12) Insufficient protection of our trade secrets and intellectual property rights including patents;

 

(13) Expenses associated with licenses we require to continue to manufacture and sell products;

 

(14) Environmental liability and compliance obligations by tightening of environmental laws and regulations;

 

(15) Unintentional conflict with laws and regulations or newly enacted laws and regulations;

 

(16) Our market or supply chains being affected by terrorism, plague, wars or similar events;

 

(17) Earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers;

 

(18) Credit risk on trade receivables;

 

(19) Fluctuations in the value of, and impairment losses on, securities and other assets held by us;

 

(20) Impairment losses on long-lived assets, goodwill and intangible assets;

 

(21) Unrealized deferred tax assets and additional liabilities for unrecognized tax benefits; and

 

(22) Changes in accounting principles.

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

Other Note:

This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2017. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

 

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1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Nine Months Ended December 31, 2017

Consolidated Financial Results

During the nine months ended December 31, 2017 (“the nine months”), sales in the Electronic Devices Group and Industrial & Automotive Components Group increased significantly on the back of strong component demand in information and communications, automotive-related and industrial machinery markets. Sales in the Document Solutions Group also increased due to new product introductions and aggressive sales promotion activities. Consolidated net sales for the nine months increased by ¥130,388 million, or 12.9%, compared with the nine months ended December 31, 2016 (“the previous nine months”) to ¥1,145,016 million due partly to contributions from merger and acquisition activity. This result is a record high for the nine-month period.

Profit increased significantly compared with the previous nine months due to an increase in sales and a reduction in costs. Profit from operations increased by ¥41,882 million, or 62.4%, to ¥108,984 million and income before income taxes increased by ¥46,158 million, or 46.8%, to ¥144,864 million compared with the previous nine months. Net income attributable to Kyocera Corporation’s shareholders for the nine months increased by ¥19,415 million, or 27.4%, to ¥90,267 million. Net income attributable to Kyocera Corporation’s shareholders decreased by approximately ¥11 billion in the third quarter (October 1 to December 31, 2017) due to tax expenses in our subsidiaries such as AVX Corporation, a U.S. subsidiary, primarily resulting from tax law revisions in the United States.

Average exchange rates for the nine months were ¥112 to the U.S. dollar, marking depreciation of the yen by ¥5 (4.7%), and ¥129 to the Euro, marking depreciation of the yen by ¥11 (9.3%), compared with the previous nine months. As a result, net sales and income before income taxes after translation into yen for the nine months increased by approximately ¥39 billion and ¥13 billion, respectively, compared with the previous nine months.

 

     Nine months ended December 31,      Increase
(Decrease)
 
     2016      2017     
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except exchange rates)  

Net sales

   ¥ 1,014,628        100.0      ¥ 1,145,016        100.0      ¥ 130,388        12.9  

Profit from operations

     67,102        6.6        108,984        9.5        41,882        62.4  

Income before income taxes

     98,706        9.7        144,864        12.7        46,158        46.8  

Net income attributable to Kyocera Corporation’s shareholders

     70,852        7.0        90,267        7.9        19,415        27.4  

Average US$ exchange rate

     107               112                       

Average Euro exchange rate

     118               129                       

 

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Consolidated Results by Reporting Segment

1) Industrial & Automotive Components Group

Sales of industrial tools increased on the back of increased demand and merger and acquisition activity. In addition, sales of automotive displays and fine ceramic parts for semiconductor processing equipment increased. Due primarily to these factors, sales in this reporting segment increased compared with the previous nine months. Operating profit increased significantly due to the growth in sales and a reduction in costs. The operating profit ratio improved to the double-digit level.

2) Semiconductor Components Group

Sales in this reporting segment increased compared with the previous nine months due mainly to an increase in sales of ceramic packages for smartphones and organic packages for automotive application. Operating profit increased due to the sales growth and cost reductions. The operating profit ratio also improved.

3) Electronic Devices Group

Sales of capacitors, crystal components and connectors increased due to expansion of production capacity on the back of solid demand for smartphone parts and to new product introductions. Additionally, demand for printing devices for industrial equipment was strong. There was also a contribution from merger and acquisition activity at AVX Corporation. As a result, sales in this reporting segment increased compared with the previous nine months. Operating profit increased significantly due to the sales growth and cost reductions, and the operating profit ratio also improved.

4) Communications Group

Sales increased compared with the previous nine months due to solid performance in the information and communications services business, which provides engineering services, etc., and, as a result, operating profit was recorded in this reporting segment. These results were despite a decrease in sales in the telecommunications equipment business due to a reduction in sales volume of mobile phones for the U.S. market.

5) Document Solutions Group

Sales in this reporting segment increased compared with the previous nine months due to an increase in sales volume resulting from launching of new products and aggressive sales promotion activities. Sales by businesses acquired through merger and acquisition activity also contributed. Operating profit increased significantly due to the increase in sales, cost reductions and the impact of foreign exchange rate fluctuations. The operating profit ratio improved to the double-digit level.

6) Life & Environment Group

Sales in this reporting segment decreased compared with the previous nine months due to downsizing of the solar energy business in the United States and lower sales in the Japanese solar energy market. Operating loss was recorded in this reporting segment.

 

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Net Sales by Reporting Segment

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2016     2017    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 165,181       16.3     ¥ 205,456       18.0     ¥ 40,275       24.4  

Semiconductor Components Group

     181,309       17.9       196,226       17.1       14,917       8.2  

Electronic Devices Group

     176,858       17.4       223,451       19.5       46,593       26.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     523,348       51.6       625,133       54.6       101,785       19.4  

Communications Group

     172,213       17.0       181,321       15.8       9,108       5.3  

Document Solutions Group

     227,750       22.4       266,902       23.3       39,152       17.2  

Life & Environment Group

     104,312       10.3       79,747       7.0       (24,565     (23.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     504,275       49.7       527,970       46.1       23,695       4.7  

Others

     16,696       1.6       14,068       1.2       (2,628     (15.7

Adjustments and eliminations

     (29,691     (2.9     (22,155     (1.9     7,536        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,014,628       100.0     ¥ 1,145,016       100.0     ¥ 130,388       12.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Profit (Loss) by Reporting Segment

 

    
     Nine months ended December 31,     Increase
(Decrease)
 
     2016     2017    
     Amount     % *     Amount     % *     Amount     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 13,499       8.2     ¥ 24,099       11.7     ¥ 10,600       78.5  

Semiconductor Components Group

     19,109       10.5       27,277       13.9       8,168       42.7  

Electronic Devices Group

     22,501       12.7       36,419       16.3       13,918       61.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     55,109       10.5       87,795       14.0       32,686       59.3  

Communications Group

     (290           2,291       1.3       2,581        

Document Solutions Group

     20,041       8.8       29,411       11.0       9,370       46.8  

Life & Environment Group

     (545           (2,270           (1,725      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     19,206       3.8        29,432       5.6        10,226       53.2   

Others

     (1,522           1,094       7.8       2,616        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     72,793       7.2       118,321       10.3       45,528       62.5  

Corporate gains and equity in earnings (losses) of affiliates and an unconsolidated subsidiary

     26,995             27,817             822       3.0  

Adjustments and eliminations

     (1,082           (1,274           (192      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 98,706       9.7     ¥ 144,864       12.7     ¥ 46,158       46.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
* % to net sales of each corresponding segment

Note: Kyocera has changed the classification of its reporting segments from the year ending March 31, 2018. Business results for the nine months ended December 31, 2016 have been reclassified in line with the change to reporting segment classifications.

 

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(2) Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at December 31, 2017 decreased by ¥26,511 million to ¥349,684 million from ¥376,195 million at March 31, 2017.

1) Cash flows from operating activities

Net cash provided by operating activities for the nine months increased by ¥17,711 million to ¥112,925 million from ¥95,214 million for the previous nine months. This was due mainly to an increase in net income as well as cash flow adjustments related to increases in notes and account payable and accrued income taxes, which exceeded cash flow adjustments related to an increase in inventories.

2) Cash flows from investing activities

Net cash used in investing activities for the nine months decreased by ¥3,407 million to ¥95,325 million from ¥98,732 million for the previous nine months. This was due mainly to an increase in payments for acquisitions of businesses and a decrease in purchase of held-to-maturity securities, which was partly offset by a decrease in maturities of held-to-maturity securities.

3) Cash flows from financing activities

Net cash used in financing activities for the nine months increased by ¥4,214 million to ¥51,004 million from ¥46,790 million for the previous nine months. This was due mainly to an increase in dividends paid.

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2016     2017    
     (Yen in millions)  

Cash flows from operating activities

   ¥ 95,214     ¥ 112,925     ¥ 17,711  

Cash flows from investing activities

     (98,732     (95,325     3,407  

Cash flows from financing activities

     (46,790     (51,004     (4,214

Effect of exchange rate changes on cash and cash equivalents

     7,014       6,893       (121

Net decrease in cash and cash equivalents

     (43,294     (26,511     16,783  

Cash and cash equivalents at beginning of period

     374,020       376,195       2,175  

Cash and cash equivalents at end of period

   ¥ 330,726     ¥ 349,684     ¥ 18,958  

 

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(3) Consolidated Financial Forecasts for the Year Ending March 31, 2018

Kyocera has made no changes to its consolidated forecasts for the year ending March 31, 2018 with respect to its previous projections for net sales, profit from operations or income before income taxes in light of results for the nine months and the outlook for the fourth quarter (January 1 to March 31, 2018). However, net income attributable to Kyocera Corporation’s shareholders has been revised as shown in the table below due to the recording of tax expenses in the third quarter primarily resulting from the tax law revisions in the United States.

Kyocera has also revised its forecasts by reporting segment as shown on the following page taking into consideration the level of achievement toward previous projections, reflecting lower sales in the solar energy business and the contrasting strong performance of the components business.

With regard to average exchange rates for the fiscal year, the forecast for the U.S.-Yen exchange rate remains unchanged from the previous projection at ¥111 to the U.S. dollar while the forecast for the Euro-Yen exchange rate has been revised from ¥128 to ¥130 to the Euro, marking depreciation of ¥2 (1.6%).

Kyocera will work to continue expanding sales and comprehensively reduce costs with the aim of achieving its full-year financial forecasts.

Please refer to “Cautionary Statement for Forecasts” in “Instruction for Forecasts and Other Notes” on page 3.

 

                                                                                                                      
     Results for
the year ended
March 31, 2017
    Forecasts for the year ending
March 31, 2018 announced on
    Increase
(Decrease)
to Results
 
       October 30, 2017
(Previous)
    February 1, 2018
(Revised)
   
     Amount     %     Amount     %     Amount     %     %  
     (Yen in millions, except exchange rates)  

Net sales

   ¥ 1,422,754        100.0      ¥ 1,560,000        100.0      ¥ 1,560,000        100.0        9.6   

Profit from operations

     104,542       7.3       135,000       8.7       135,000       8.7       29.1  

Income before income taxes

     137,849       9.7       170,000       10.9       170,000       10.9       23.3  

Net income attributable to Kyocera Corporation’s shareholders

     103,843       7.3       119,000       7.6       108,000       6.9       4.0  

Average US$ exchange rate

     108             111             111              

Average Euro exchange rate

     119             128             130              

 

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Net Sales by Reporting Segment

 

                                                                                                                      
     Results for
the year ended
March 31, 2017
    Forecasts for the year ending
March 31, 2018 announced on
    Increase
(Decrease)
to Results
 
       October 30, 2017
(Previous)
    February 1, 2018
(Revised)
   
     Amount     %     Amount     %     Amount     %     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 230,229        16.2      ¥ 280,000        18.0      ¥ 284,000        18.2        23.4   

Semiconductor Components Group

     245,727       17.3       256,000       16.4       254,000       16.3       3.4  

Electronic Devices Group

     240,798       16.9       289,000       18.5       303,000       19.4       25.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     716,754       50.4       825,000       52.9       841,000       53.9       17.3  

Communications Group

     252,641       17.7       255,000       16.4       252,000       16.2       (0.3

Document Solutions Group

     324,012       22.8       350,000       22.4       369,000       23.6       13.9  

Life & Environment Group

     149,207       10.5       139,000       8.9       112,000       7.2       (24.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     725,860       51.0       744,000       47.7       733,000       47.0       1.0  

Others

     22,066       1.5       17,000       1.1       18,000       1.2       (18.4

Adjustments and eliminations

     (41,926     (2.9     (26,000     (1.7     (32,000     (2.1      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 1,422,754       100.0     ¥ 1,560,000       100.0     ¥ 1,560,000       100.0       9.6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating Profit (Loss) by Reporting Segment  
     Results for
the year ended
March 31, 2017
    Forecasts for the year ending
March 31, 2018 announced on
    Increase
(Decrease)
to Results
 
       October 30, 2017
(Previous)
    February 1, 2018
(Revised)
   
     Amount     % *     Amount     % *     Amount     % *     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 22,442        9.7      ¥ 30,000        10.7      ¥ 31,000        10.9        38.1   

Semiconductor Components Group

     25,310       10.3       35,000       13.7       35,000       13.8       38.3  

Electronic Devices Group

     30,558       12.7       40,000       13.8       46,000       15.2       50.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     78,310       10.9       105,000       12.7       112,000       13.3       43.0  

Communications Group

     8,528       3.4       1,000       0.4       1,000       0.4       (88.3

Document Solutions Group

     28,080       8.7       40,000       11.4       40,000       10.8       42.5  

Life & Environment Group

     1,345       0.9       1,000       0.7       (9,000            
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     37,953       5.2       42,000       5.6       32,000       4.4       (15.7

Others

     (1,759           (1,000           1,000       5.6        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     114,504       8.0       146,000       9.4       145,000       9.3       26.6  

Corporate and others

     23,345             24,000             25,000             7.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 137,849       9.7     ¥ 170,000       10.9     ¥ 170,000       10.9       23.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* % to net sales of each corresponding segment

Note: Kyocera has changed the classification of its reporting segments from the year ending March 31, 2018. Business results for the year ended March 31, 2017 have been reclassified in line with the change to reporting segment classifications.

 

9


Table of Contents

2. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)

 

                                                                          
     March 31, 2017     December 31, 2017     Increase
(Decrease)
 
     Amount     %     Amount     %    
     (Yen in millions)  

ASSETS

  

Current assets:

                                                                                                                                  

Cash and cash equivalents

   ¥ 376,195       ¥ 349,684       ¥ (26,511

Short-term investments in debt securities

     84,703         55,530         (29,173

Other short-term investments

     212,668         234,898         22,230  

Trade notes receivables

     28,370         24,141         (4,229

Trade accounts receivables

     291,485         308,250         16,765  

Less allowances for doubtful accounts and sales returns

     (5,593       (5,477       116  

Inventories

     331,155         407,988         76,833  

Other current assets

     119,714         127,846         8,132  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     1,438,697       46.3       1,502,860       46.9       64,163  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current assets:

          

Investments and advances:

          

Long-term investments in debt and equity securities

     1,130,756         1,094,703         (36,053

Other long-term investments

     22,246         26,492         4,246  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments and advances

     1,153,002       37.0       1,121,195       35.0       (31,807
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property, plant and equipment:

          

Land

     59,963         60,962         999  

Buildings

     351,431         363,324         11,893  

Machinery and equipment

     841,973         890,882         48,909  

Construction in progress

     14,097         22,592         8,495  

Less accumulated depreciation

     (1,000,860       (1,043,330       (42,470
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total property, plant and equipment

     266,604       8.6       294,430       9.2       27,826  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Goodwill

     110,470       3.5       142,114       4.4       31,644  

Intangible assets

     61,235       2.0       68,577       2.2       7,342  

Other assets

     80,462       2.6       72,407       2.3       (8,055
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current assets

     1,671,773       53.7       1,698,723       53.1       26,950  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   ¥ 3,110,470       100.0     ¥ 3,201,583       100.0     ¥ 91,113  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Table of Contents
                                                                          
     March 31, 2017     December 31, 2017     Increase
(Decrease)
 
     Amount     %     Amount     %    
     (Yen in millions)  

LIABILITIES AND EQUITY

                                                                                                                                  

Current liabilities:

          

Short-term borrowings

   ¥ 191       ¥ 155       ¥ (36

Current portion of long-term debt

     8,235         8,916         681  

Trade notes and accounts payable

     129,460         159,353         29,893  

Other notes and accounts payable

     60,881         63,937         3,056  

Accrued payroll and bonus

     62,868         55,691         (7,177

Accrued income taxes

     15,707         15,679         (28

Other accrued liabilities

     51,062         53,363         2,301  

Other current liabilities

     36,257         49,903         13,646  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     364,661       11.7       406,997       12.7       42,336  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current liabilities:

          

Long-term debt

     16,409         18,046         1,637  

Accrued pension and severance liabilities

     31,720         32,165         445  

Deferred income taxes

     258,859         245,089         (13,770

Other non-current liabilities

     19,912         27,205         7,293  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     326,900       10.5       322,505       10.1       (4,395
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     691,561       22.2       729,502       22.8       37,941  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity:

          

Kyocera Corporation’s shareholders’ equity:

          

Common stock

     115,703         115,703          

Additional paid-in capital

     165,230         165,000         (230

Retained earnings

     1,638,116         1,684,258         46,142  

Accumulated other comprehensive income

     447,479         453,381         5,902  

Common stock in treasury, at cost

     (32,309       (32,339       (30
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Kyocera Corporation’s shareholders’ equity

     2,334,219       75.1       2,386,003       74.5       51,784  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     84,690       2.7       86,078       2.7       1,388  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     2,418,909       77.8       2,472,081       77.2       53,172  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   ¥ 3,110,470       100.0     ¥ 3,201,583       100.0     ¥ 91,113  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Note: Accumulated other comprehensive income is as follows:

 

 

     March 31, 2017     December 31, 2017     Increase
(Decrease)
 
     (Yen in millions)  

Net unrealized gains on securities

     ¥499,650       ¥484,105     ¥ (15,545

Net unrealized losses on derivative financial instruments

       (449       (472     (23

Pension liability adjustment

       (35,362       (37,153     (1,791

Foreign currency translation adjustments

       (16,360       6,901       23,261  
  

 

 

   

 

 

   

 

 

 

Total

     ¥447,479       ¥453,381     ¥ 5,902  
  

 

 

   

 

 

   

 

 

 

 

11


Table of Contents

(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)

Consolidated Statements of Income

 

     Nine months ended December 31,     Increase
(Decrease)
 
     2016     2017    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions and shares in thousands, except per share amounts)  

Net sales

   ¥ 1,014,628       100.0     ¥ 1,145,016       100.0     ¥ 130,388       12.9  

Cost of sales

     751,398       74.1       829,709       72.5       78,311       10.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     263,230       25.9       315,307       27.5       52,077       19.8  

Selling, general and administrative expenses

     196,128       19.3       206,323       18.0       10,195       5.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

     67,102       6.6       108,984       9.5       41,882       62.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expenses) :

            

Interest and dividend income

     30,904       3.0       38,625       3.4       7,721       25.0  

Interest expense

     (566     (0.1     (983     (0.1     (417      

Foreign currency transaction gains, net

     553       0.1       111       0.0       (442     (79.9

Gains on sales of securities, net

     103       0.0       400       0.1       297       288.3  

Other, net

     610       0.1       (2,273     (0.2     (2,883      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

     31,604       3.1       35,880       3.2       4,276       13.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     98,706       9.7       144,864       12.7       46,158       46.8  

Income taxes

     24,235       2.4       53,256       4.7       29,021       119.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     74,471       7.3       91,608       8.0       17,137       23.0  

Net income attributable to noncontrolling interests

     (3,619     (0.3     (1,341     (0.1     2,278        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Kyocera Corporation’s shareholders

   ¥ 70,852       7.0     ¥ 90,267       7.9     ¥ 19,415       27.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share information:

            

Net income attributable to Kyocera Corporation’s shareholders:

            

Basic

   ¥ 192.88       ¥ 245.49        

Diluted

     192.88         245.49        

Average number of shares of common stock outstanding:

            

Basic

     367,334         367,710        

Diluted

     367,334         367,710        

Note:

Basic earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the diluted average number of shares of stock outstanding during each period.

 

12


Table of Contents

Consolidated Statements of Comprehensive Income

 

                                                        
     Nine months ended December 31,     Increase
(Decrease)
 
     2016     2017    
     Amount     Amount     Amount  
     (Yen in millions)  

Net income

   ¥ 74,471     ¥ 91,608     ¥ 17,137  
  

 

 

   

 

 

   

 

 

 

Other comprehensive income—net of taxes

      

Net unrealized losses on securities

     (9,529     (15,547     (6,018

Net unrealized losses on derivative financial instruments

     (207     (52     155  

Pension liability adjustment

     (597     (1,967     (1,370

Foreign currency translation adjustments

     2,656       25,645       22,989  
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income

     (7,677     8,079       15,756  
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     66,794       99,687       32,893  

Comprehensive income attributable to noncontrolling interests

     (4,351     (3,544     807  
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Kyocera Corporation’s shareholders

   ¥ 62,443     ¥ 96,143     ¥ 33,700  
  

 

 

   

 

 

   

 

 

 

(3) Notes to the Consolidated Financial Statements

Cautionary Statement for Premise of a Going Concern

Not applicable.

Cautionary Statement for Significant Changes in Equity

Not applicable.

Increase or Decrease in Significant Subsidiaries during the nine months ended December 31, 2017

For the nine months ended December 31, 2017, Kyocera Crystal Device Corporation which was Kyocera Corporation’s significant subsidiary was excluded from consolidation of Kyocera Corporation due to dissolution of Kyocera Crystal Device Corporation resulted from absorption-type merger with Kyocera Corporation as the surviving company on April 1, 2017.

Changes in Accounting Policies

Recently Adopted Accounting Standards

The accounting standards which Kyocera adopted on or after April 1, 2017 did not have material impacts on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

13

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