Edgar Filing: KYOCERA CORP

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Form 6-K

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of April 2012

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): ¨

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/ SHOICHI AOKI

Shoichi Aoki

Director,

Managing Executive Officer and

General Manager of

Corporate Financial and Business Systems

Administration Group

Date: April 26, 2012

Information furnished on this form:

EXHIBITS


Exhibit Number
1.		Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Year Ended March 31, 2012

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

1. Consolidated Financial Results for the Year Ended March 31, 2012 (Fiscal 2012)


(1) Consolidated results of operations									(% of change from previous year)
	Net sales					Profit from operations					Income before income taxes					Net income attributable to shareholders of Kyocera Corporation
	Million yen		%			Million yen		%			Million yen		%			Million yen		%
Fiscal 2012		1,190,870		(6.0	)		105,575		(32.3	)		122,793		(28.7	)		82,901		(32.3	)
Fiscal 2011		1,266,924		18.0			155,924		144.2			172,332		183.5			122,448		205.4

(Note) Comprehensive income:

82,975 million yen in the year ended March 31, 2012, (17.4)% of change from previous year

100,502 million yen in the year ended March 31, 2011, 113.2% of change from previous year


	Net income attributable to shareholders of Kyocera Corporation per share -Basic		Net income attributable to shareholders of Kyocera Corporation per share -Diluted		Ratio of net income attributable to shareholders of Kyocera Corporation to shareholders’ equity		Ratio of income before income taxes to total assets		Ratio of profit from operations to net sales
	Yen		Yen		%		%		%
Fiscal 2012		451.90		451.90		5.7		6.2		8.9
Fiscal 2011		667.23		667.23		8.9		9.1		12.3

(Reference) Equity in losses of affiliates and unconsolidated subsidiaries:


(36) million yen in the year ended March 31, 2012		(160) million yen in the year ended March 31, 2011

(2) Consolidated financial condition


	Total assets		Total equity		Kyocera Corporation shareholders’ equity		Kyocera Corporation shareholders’ equity to total assets		Kyocera Corporation shareholders’ equity per share
	Million yen		Million yen		Million yen		%		Yen
March 31, 2012		1,989,895		1,539,366		1,473,186		74.1		8,030.72
March 31, 2011		1,946,566		1,483,359		1,420,263		73.0		7,739.31

(3) Consolidated cash flows


	Operating activities		Investing activities			Financing activities			Cash and cash equivalents at end of year
	Million yen		Million yen			Million yen			Million yen
Fiscal 2012		109,065		(56,051	)		(50,769	)		273,288
Fiscal 2011		119,687		(121,364	)		(26,820	)		273,471

2. Dividends


	Dividends per share										Annual aggregate		Dividends to net income attributable to		Dividends to
	End of first quarter		End of second quarter		End of third quarter		Year-end		Annual		amount of dividends		shareholders of Kyocera Corporation		Kyocera Corporation shareholders’ equity
	Yen		Yen		Yen		Yen		Yen		Million yen		%		%
Fiscal 2011		—		60.00		—		70.00		130.00		23,857		19.5		1.7
Fiscal 2012		—		60.00		—		60.00		120.00		22,013		26.6		1.5
Fiscal 2013 (forecast)		—		—		—		—		120.00		—		22.9		—

(Note) Dividends per share for the year ending March 31, 2013 are forecasted to be 120.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013 (Fiscal 2013)

(% of change from the previous year)


	Net sales				Profit from operations				Income before income taxes				Net income attributable to shareholders of Kyocera Corporation				Net income attributable to shareholders of Kyocera Corporation per share
	Million yen		%		Million yen		%		Million yen		%		Million yen		%		Yen
Fiscal 2013		1,370,000		15.0		140,000		32.6		151,200		23.1		96,000		15.8		523.30

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

(Notes)

(1) Increase or decrease in significant subsidiaries during the year ended March 31, 2012: None.

(2) Changes in accounting policies:

(i) Changes due to adoption of new accounting standards: Please refer to the accompanying “(5) Basis of Preparation of Consolidated Financial Statements” on page 18.

(ii) Changes due to other than adoption of new accounting standards: None.

(3) Number of shares (common stock):

(i) Number of shares issued:


191,309,290 shares at March 31, 2012		191,309,290 shares at March 31, 2011

(ii) Number of treasury stock:


7,865,370 shares at March 31, 2012		7,796,321 shares at March 31, 2011

(iii) Average number of shares outstanding:


183,450,800 shares in the year ended March 31, 2012		183,517,144 shares in the year ended March 31, 2011

(Reference) Outline of Non-Consolidated Results for Kyocera Corporation

The non-consolidated financial information is prepared in accordance with accounting principles generally accepted in Japan.

1. Non-consolidated Financial Results for the Year Ended March 31, 2012:


(1) Non-consolidated results of operations									(% of change from previous year)
	Net sales					Profit from operations					Recurring profit					Net income
	Million yen		%			Million yen		%			Million yen		%			Million yen		%
Fiscal 2012		570,310		(13.4	)		17,699		(61.5	)		67,243		(26.3	)		49,828		(30.7	)
Fiscal 2011		658,297		39.0			45,992		—			91,285		177.8			71,934		870.1


	Net income per share -Basic		Net income per share -Diluted
	Yen		Yen
Fiscal 2012		271.62		—
Fiscal 2011		391.97		—

(2) Non-consolidated financial condition


	Total assets		Net assets		Net assets to total assets		Net assets per share
	Million yen		Million yen		%		Yen
March 31, 2012		1,458,971		1,219,897		83.6		6,649.97
March 31, 2011		1,441,403		1,173,990		81.4		6,397.31

Presentation of Situation of Audit Procedure

The consolidated financial information included in this Form 6-K is out of scope of audit procedure under the Financial Instruments and Exchange Law of Japan. Audit procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of submission of this Form 6-K.

Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 9.

Accompanying Information

1. BUSINESS RESULTS

(1) Analysis of Business Results

[Business Results for the Year Ended March 31, 2012]

Economic Situation and Business Environment

In the year ended March 31, 2012 (“fiscal 2012”), the Japanese economy stagnated overall, due to continued appreciation of the yen against the Euro and the U.S. dollar and a decrease in exports, despite resolution of disruptions in production activities and the supply chain following the Great East Japan Earthquake. The European economy showed a downturn, due to a reduced willingness to engage in personal consumption and investment as the financial crisis worsened. In contrast, the U.S. economy continued to recover moderately, due mainly to growth in personal consumption and private capital investment. The Chinese economy continued to expand, primarily supported by strong domestic demand in spite of signs of a slowdown in export growth.

In the information and communications market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”), demand for items such as mobile phone handsets, personal computers and flat-screen TVs was sluggish compared with projections from the beginning of fiscal 2012. In addition, component inventory adjustments at equipment manufacturers persisted due to stagnation in production activities for products including digital cameras resulting from the prolonged impact of floods in Thailand. As a result, component demand, mainly for digital consumer equipment, fell below the level recorded in the year ended March 31, 2011 (“fiscal 2011”).

Consolidated Financial Results

Average exchange rates for fiscal 2012 were ¥79 to the U.S. dollar, marking appreciation of ¥7 (approximately 8%) from ¥86 for fiscal 2011, and ¥109 to the Euro, marking appreciation of ¥4 (approximately 4%) from ¥113 for fiscal 2011. As a result, net sales and income before income taxes for fiscal 2012 were adversely affected by approximately ¥40 billion and ¥10 billion, respectively, compared with fiscal 2011.

Consolidated net sales for fiscal 2012 decreased by ¥76,054 million, or 6.0%, to ¥1,190,870 million, compared with ¥1,266,924 million for fiscal 2011, due primarily to a decline in component demand for digital consumer equipment and a decrease in sales in the Telecommunications Equipment Group in addition to the impact of the yen’s appreciation. Profit from operations decreased by ¥50,349 million, or 32.3%, to ¥105,575 million, compared with ¥155,924 million for fiscal 2011. In addition, income before income taxes decreased by ¥49,539 million, or 28.7%, to ¥122,793 million, compared with ¥172,332 million for fiscal 2011. Net income attributable to shareholders of Kyocera Corporation for fiscal 2012 decreased by ¥39,547 million, or 32.3%, to ¥82,901 million, compared with ¥122,448 million for fiscal 2011.


	Years ended March 31,								Increase (Decrease)
	2011				2012				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	1,266,924		100.0	¥	1,190,870		100.0	¥	(76,054	)		(6.0	)
Profit from operations		155,924		12.3		105,575		8.9		(50,349	)		(32.3	)
Income before income taxes		172,332		13.6		122,793		10.3		(49,539	)		(28.7	)
Net income attributable to shareholders of Kyocera Corporation		122,448		9.7		82,901		7.0		(39,547	)		(32.3	)
Diluted earnings per share attributable to shareholders of Kyocera Corporation		667.23		—		451.90		—		—			—
Average US$ exchange rate		86		—		79		—		—			—
Average Euro exchange rate		113		—		109		—		—			—

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Both sales and operating profit in this reporting segment increased compared with fiscal 2011 due to an increase in demand for components, mainly for the automotive and LED-related markets.

2) Semiconductor Parts Group

The impact of customer inventory adjustments for components used in digital consumer equipment led to sluggish demand for packages for electronic components and image sensors. As a result, sales and operating profit in this reporting segment decreased compared with fiscal 2011.

3) Applied Ceramic Products Group

In the cutting tool business, demand grew, particularly in the automotive market. The solar energy business stagnated, however, due to a steep decline in product prices worldwide caused by deterioration in the balance of supply and demand as growth in the European market slowed. As a result, sales and operating profit in this reporting segment decreased compared with fiscal 2011.

4) Electronic Device Group

Component demand was generally sluggish due to stagnation in production activities for digital consumer equipment which reflected the impact of the Great East Japan Earthquake and the floods in Thailand. These factors, in addition to the yen’s appreciation, led to decreases in sales and operating profit in this reporting segment compared with fiscal 2011.

5) Telecommunications Equipment Group

Despite aggressive introduction of new products, which included the commencement of smartphone sales for the Japanese market, sales in this reporting segment decreased compared with fiscal 2011, due to sluggish growth in sales of mobile phone handsets overseas. Operating profit slightly declined compared with fiscal 2011, despite of efforts to reduce manufacturing costs and to undertake structural reforms in overseas operations.

6) Information Equipment Group

Sales in this reporting segment increased slightly compared with fiscal 2011, due to increased sales volume resulting from the aggressive launch of new products and expansion of sales network, mostly offset by the impact of the yen’s appreciation. Operating profit increased, however, compared with fiscal 2011, due to an increase in sales of high-value-added products such as color-capable machines and consumables.

7) Others

Sales in this reporting segment increased compared with fiscal 2011 due to sales contributions from new products such as LED lighting and growth in sales at Kyocera Communication Systems Co., Ltd. Operating profit decreased compared with fiscal 2011, however, due mainly to an increase in R&D expenses for new businesses.

Net Sales by Reporting Segment


	Years ended March 31,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	76,269			6.0		¥	80,372			6.7		¥	4,103			5.4
Semiconductor Parts Group		174,687			13.8			153,420			12.9			(21,267	)		(12.2	)
Applied Ceramic Products Group		197,642			15.6			179,784			15.1			(17,858	)		(9.0	)
Electronic Device Group		242,641			19.2			228,721			19.2			(13,920	)		(5.7	)

Total Components Business		691,239			54.6			642,297			53.9			(48,942	)		(7.1	)
Telecommunications Equipment Group		225,168			17.8			178,669			15.0			(46,499	)		(20.7	)
Information Equipment Group		239,916			18.9			243,457			20.4			3,541			1.5

Total Equipment Business		465,084			36.7			422,126			35.4			(42,958	)		(9.2	)
Others		139,383			11.0			151,987			12.8			12,604			9.0
Adjustments and eliminations		(28,782	)		(2.3	)		(25,540	)		(2.1	)		3,242			—

Net sales	¥	1,266,924			100.0		¥	1,190,870			100.0		¥	(76,054	)		(6.0	)

Operating Profit by Reporting Segment
	Years ended March 31,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	11,969			15.7		¥	12,622			15.7		¥	653			5.5
Semiconductor Parts Group		37,331			21.4			27,754			18.1			(9,577	)		(25.7	)
Applied Ceramic Products Group		29,049			14.7			6,459			3.6			(22,590	)		(77.8	)
Electronic Device Group		41,646			17.2			23,936			10.5			(17,710	)		(42.5	)

Total Components Business		119,995			17.4			70,771			11.0			(49,224	)		(41.0	)
Telecommunications Equipment Group		2,121			0.9			1,469			0.8			(652	)		(30.7	)
Information Equipment Group		25,845			10.8			29,451			12.1			3,606			14.0

Total Equipment Business		27,966			6.0			30,920			7.3			2,954			10.6
Others		9,651			6.9			8,054			5.3			(1,597	)		(16.5	)

Operating profit		157,612			12.4			109,745			9.2			(47,867	)		(30.4	)
Corporate		16,882			—			13,876			—			(3,006	)		(17.8	)
Equity in losses of affiliates and unconsolidated subsidiaries		(160	)		—			(36	)		—			124			—
Adjustments and eliminations		(2,002	)		—			(792	)		—			1,210			—

Income before income taxes	¥	172,332			13.6		¥	122,793			10.3		¥	(49,539	)		(28.7	)

*	% to net sales of each corresponding segment

Net Sales by Geographic Area

i) Japan

Despite an increase in sales at Kyocera Communication Systems Co., Ltd., sales in the solar energy business decreased resulting from deteriorated product prices, as well as sluggish demand for components used in digital consumer equipment. As a result, sales for Japan were flat compared with fiscal 2011.

ii) Asia

Sales in the Electronic Device Group and the Semiconductor Parts Group decreased due to a decrease in demand for components used in digital consumer equipment, and to the yen’s appreciation. As a result, sales for Asia decreased compared with fiscal 2011.

iii) Europe

Sales for Europe decreased compared with fiscal 2011 due to a decrease in sales in the Applied Ceramic Products Group resulting primarily from slowed market growth in Europe and a steep decline in product prices in solar energy business.

iv) United Sates of America

Sales for the U.S. decreased compared with fiscal 2011 due to a decline in sales volume of mobile phone handsets in the Telecommunications Equipment Group and to the yen’s appreciation.

v) Others

Sales for Others decreased compared with fiscal 2011 due mainly to decreased sales in the Semiconductor Parts Group and the Electronic Device Group resulting from sluggish demand for components.


	Years ended March 31,								Increase (Decrease)
	2011				2012				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions)
Japan	¥	559,883		44.2	¥	559,344		47.0	¥	(539	)		(0.1	)
Asia		215,913		17.0		205,469		17.2		(10,444	)		(4.8	)
Europe		210,131		16.6		204,887		17.2		(5,244	)		(2.5	)
United States of America		220,706		17.4		166,706		14.0		(54,000	)		(24.5	)
Others		60,291		4.8		54,464		4.6		(5,827	)		(9.7	)

Net sales	¥	1,266,924		100.0	¥	1,190,870		100.0	¥	(76,054	)		(6.0	)

Implemented Management Measures and Significant Management Decisions made in Fiscal 2012

i) In July 2011, with the aim of strengthening its cutting tool business, Kyocera acquired 100% of the outstanding common stock of Unimerco Group A/S (now Kyocera Unimerco A/S (“KUA”)), a Danish industrial cutting tool manufacturing and sales company, and made it a consolidated subsidiary. By making KUA a consolidated subsidiary, Kyocera has added to its lineup KUA’s high-quality, high-precision, custom-made solid-type cutting tools for automobile engine processing, as well as for the aviation and wind-power generation markets, while also expanding its sales network, mainly in Europe. Going forward, Kyocera will strive to further expand its cutting tool business through the pursuit of synergies with KUA.

ii) In February 2012, in order to expand its liquid crystal displays (LCDs) business, Kyocera acquired all shares of Optrex Corporation (now Kyocera Display Corporation), a specialized manufacturer of LCDs and related products, and made it a consolidated subsidiary. Going forward, Kyocera will take advantage of its strong customer base in LCDs for automotive applications both inside and outside Japan, with the aim of expanding business in the automotive market.

[Consolidated Forecasts for the Year Ending March 31, 2013]

In the year ending March 31, 2013 (“fiscal 2013”), despite future uncertainty, particularly with regard to the European economy and exchange rate trends, the Japanese economy is forecast to move toward recovery, due to anticipated demand arising from restoration projects following the Great East Japan Earthquake. In addition, the U.S. economy is expected to recover moderately, while the Chinese economy is expected to show continued strong growth.

In the information and communications market, Kyocera expects recovery in production activities for digital consumer equipment as the impact from the floods in Thailand dissipates. Kyocera also anticipates an increase in component demand, primarily for smartphones. In the environment and energy market, the business environment is expected to show general improvement compared with fiscal 2012, primarily due to projected market growth resulting from expansion of governmental subsidy policies, including the enforcement of the Renewable Energy Law in Japan. Kyocera aims to enhance its financial performance by expanding businesses mainly in these high-growth-potential markets through active introduction of new products and by reducing costs, boosting productivity and pursuing Group synergies.

Specific financial forecasts for fiscal 2013 are as follows.


	Results for the year ended March 31, 2012				Forecasts for the year ending March 31, 2013				Increase (Decrease)
	Amount		%		Amount		%		Amount		%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	1,190,870		100.0	¥	1,370,000		100.0	¥	179,130		15.0
Profit from operations		105,575		8.9		140,000		10.2		34,425		32.6
Income before income taxes		122,793		10.3		151,200		11.0		28,407		23.1
Net income attributable to shareholders of Kyocera Corporation		82,901		7.0		96,000		7.0		13,099		15.8
Diluted earnings per share attributable to shareholders of Kyocera Corporation		451.90		—		523.30		—		—		—
Average US$ exchange rate		79		—		80		—		—		—
Average Euro exchange rate		109		—		105		—		—		—

Note:

Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2012.

Net sales and operating profit forecasts by reporting segment are as follows.

Net Sales by Reporting Segment


	Results for the year ended March 31, 2012						Forecasts for the year ending March 31, 2013						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	80,372			6.7		¥	90,000			6.6		¥	9,628			12.0
Semiconductor Parts Group		153,420			12.9			180,000			13.1			26,580			17.3
Applied Ceramic Products Group		179,784			15.1			220,000			16.1			40,216			22.4
Electronic Device Group		228,721			19.2			310,000			22.6			81,279			35.5

Total Components Business		642,297			53.9			800,000			58.4			157,703			24.6
Telecommunications Equipment Group		178,669			15.0			180,000			13.1			1,331			0.7
Information Equipment Group		243,457			20.4			259,000			18.9			15,543			6.4

Total Equipment Business		422,126			35.4			439,000			32.0			16,874			4.0
Others		151,987			12.8			160,000			11.7			8,013			5.3
Adjustments and eliminations		(25,540	)		(2.1	)		(29,000	)		(2.1	)		(3,460	)		—

Net sales	¥	1,190,870			100.0		¥	1,370,000			100.0		¥	179,130			15.0


Operating Profit by Reporting Segment

	Results for the year ended March 31, 2012						Forecasts for the year ending March 31, 2013						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	12,622			15.7		¥	14,100			15.7		¥	1,478			11.7
Semiconductor Parts Group		27,754			18.1			32,600			18.1			4,846			17.5
Applied Ceramic Products Group		6,459			3.6			17,000			7.7			10,541			163.2
Electronic Device Group		23,936			10.5			27,000			8.7			3,064			12.8

Total Components Business		70,771			11.0			90,700			11.3			19,929			28.2
Telecommunications Equipment Group		1,469			0.8			9,000			5.0			7,531			512.7
Information Equipment Group		29,451			12.1			29,500			11.4			49			0.2

Total Equipment Business		30,920			7.3			38,500			8.8			7,580			24.5
Others		8,054			5.3			10,000			6.3			1,946			24.2

Operating profit		109,745			9.2			139,200			10.2			29,455			26.8
Corporate and others		13,048			—			12,000			—			(1,048	)		(8.0	)

Income before income taxes	¥	122,793			10.3		¥	151,200			11.0		¥	28,407			23.1

*	% to net sales of each corresponding segment

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 the following lists:

(1)	General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia;

(2)	Economic, political and legal conditions and unexpected changes therein in countries or areas where we operate;

(3)	Factors that may affect our exports, including a strong yen, political and economic instability, customs, and inadequate protection of our intellectual property;

(4)	Fluctuation in exchange rates that may affect the value of our foreign assets or the prices of our products;

(5)	Intensified competition in product pricing, technological innovation, R&D activities, product quality and speed of delivery;

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

(7)	The possibility that expansion of production capacity and in-process R&D activities may not produce the desired results;

(8)	The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect;

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

(10)	The possibility of divulgence of our trade secrets and infringement of our intellectual property rights;

(11)	The possibility that we may receive notice of claims of infringement of other parties’ intellectual property rights and claims for royalty payments;

(12)	Increases in our environmental liability and in costs and expenses required to observe obligations imposed by environmental laws and regulations in Japan and other countries;

(13)	Newly enacted laws and regulations or stricter interpretation of existing laws and regulations that may limit our business operations;

(14)	Events that may negatively impact our markets or supply chain, including terrorist acts, plague, war and similar events;

(15)	Earthquakes and other related natural disasters affecting our operational facilities and our markets or supply chain, as well as social and economic infrastructure;

(16)	Exposure to difficulties in collection of trade receivables due to customers’ worsening financial condition;

(17)	The possibility of recognition of impairment losses on investment securities held by us due to declines in their value;

(18)	The possibility that we may record impairment losses on long-lived assets, goodwill and intangible assets;

(19)	The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be incurred; and

(20)	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.

(2) Analysis of Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at March 31, 2012 decreased by ¥183 million to ¥273,288 million from ¥273,471 million at March 31, 2011.

i) Cash flows from operating activities

Net cash provided by operating activities for fiscal 2012 decreased by ¥10,622 million to ¥109,065 million from ¥119,687 million for fiscal 2011. This was due mainly to a decrease in net income.

ii) Cash flows from investing activities

Net cash used in investing activities for fiscal 2012 decreased by ¥65,313 million to ¥56,051 million from ¥121,364 million for fiscal 2011. This was due mainly to that increases in proceeds from sales and maturities of available-for-sales and held-to-maturity securities and a decrease in acquisition of time deposits and certificate of deposits exceeded an increase in acquisitions of businesses.

iii) Cash flows from financing activities

Net cash used in financing activities for fiscal 2012 increased by ¥23,949 million to ¥50,769 million from ¥26,820 million for fiscal 2011. This was due mainly to increases in payments of short-term borrowings and long-term debts.

Consolidated Cash Flows


	Years ended March 31,
	2011			2012
	(Yen in millions)
Cash flows from operating activities	¥	119,687		¥	109,065
Cash flows from investing activities		(121,364	)		(56,051	)
Cash flows from financing activities		(26,820	)		(50,769	)
Effect of exchange rate changes on cash and cash equivalents		(11,158	)		(2,428	)
Net decrease in cash and cash equivalents		(39,655	)		(183	)
Cash and cash equivalents at beginning of year		313,126			273,471
Cash and cash equivalents at end of year	¥	273,471		¥	273,288

(3) Basic Profit Distribution Policy and Dividends for the Year Ended March 31, 2012 and for the Year Ending March 31, 2013

i) Basic profit distribution policy

Kyocera believes that the best way to increase corporate value and meet shareholders’ expectations is to improve future consolidated performance on an ongoing basis. Kyocera therefore has adopted a principal guideline that dividend amounts within a range based on net income attributable to shareholders of Kyocera Corporation on a consolidated basis, and has set its consolidated dividend policy to maintain a consolidated dividend ratio at a level of approximately 20% to 25% of consolidated net income attributable to shareholders of Kyocera Corporation. In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors including the amount of capital expenditures necessary for medium to long-term corporate growth.

Kyocera also has adopted policies to ensure a sound financial basis, and, for such purpose, it 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 necessary to achieve sustainable corporate growth.

ii) Dividends for the year ended March 31, 2012

Based on performance during the year ended March 31, 2012 and pursuant to the aforementioned policies, Kyocera will distribute a year-end dividend for the year ended March 31, 2012 of 60 yen per share, a 10 yen decrease as compared with the year ended March 31, 2011. When aggregated with the interim dividend in the amount of 60 yen per share, the total annual dividend will be 120 yen per share.

iii) Dividend forecast for the year ending March 31, 2013

Dividend amounts for the year ending March 31, 2013 will be decided pursuant to “i) 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 its financial forecast for the year ending March 31, 2013.

2. 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. It pursues this objective through implementation of the “Kyocera Philosophy,” a corporate philosophy placing people’s hearts at its core, and of the “Amoeba Management System”, a management system unique to Kyocera which has been a driving force for growth since the company’s earliest days.

Kyocera’s management policy is to be a high-growth, highly profitable company. To realize this policy, Kyocera aims to increase corporate value by further enhancing performance through strengthening existing businesses, pursuing synergies among businesses and creating new businesses.

(2) Management Target

To be a high-growth, highly profitable company, Kyocera aims to achieve continuous sales growth and a consolidated pre-tax income ratio of 15% or higher.

(3) Medium-term Management Strategy and Management Challenges

During fiscal 2012, Kyocera pushed ahead with initiatives to reduce manufacturing costs and enhance productivity amidst a tough management environment arising from deterioration in external conditions, including the impact of the Great East Japan Earthquake and floods in Thailand, financial problems in Europe and the yen’s appreciation. Kyocera also undertook measures to drive future growth in the Kyocera Group, such as strengthening existing businesses by acquiring external management resources.

Going forward, Kyocera expects the business environment to continue to be severe, due primarily to stagnant growth in the global economy, continued appreciation of the yen and intensifying price competition resulting from the rise of Asian manufacturers. Kyocera believes it is necessary to further enhance management foundations and expand sales in growth markets in order to overcome global competition and drive growth of the Kyocera Group in any business environment, regardless of its severity. Specifically, Kyocera will tackle the following challenges, aiming for acceleration of global business development to become a high-growth, highly profitable company.

i) Enhance management foundations

Kyocera will promote further cost reductions, streamline existing production sites and expand their capacity in order to overcome global competition. In addition, Kyocera will take other measures, which will include establishment of new production sites, such as those in Vietnam, and will also re-examine its materials procurement methods.

Other efforts aimed at further enhancement of the Group’s management foundations will include strengthening ties among business divisions and among Group companies, in order to accelerate the development of new technologies and products. Kyocera will also continuously seek opportunities to expand its businesses by acquiring external management resources.

ii) Expand sales in growth markets

Kyocera views the information and communications market and the environment and energy market as future growth markets and will strive to expand sales in these markets in particular.

In the information and communications market, Kyocera anticipates the worldwide proliferation of smartphones and expansion of higher speed networks going forward. Kyocera will work to increase sales in the Components Business by developing smaller, more advanced components and bolstering its sales system. Efforts will also be made to expand the Equipment Business by introducing differentiated telecommunications equipment taking advantage of Kyocera’s unique component technologies and by expanding sales networks for information equipment, mainly in emerging markets.

In the environment and energy market, amidst rising awareness of environmental preservation and energy conservation, Kyocera will work to expand sales by commencing the sale of high-value-added home energy management systems combining various new devices in order to develop new markets, while continuing to pursue sales of existing solar generating systems. Kyocera is also preparing for entry into large scale solar power generation projects.

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	March 31,										Increase (Decrease)
	2011					2012
	Amount			%		Amount			%
	(Yen in millions)
Current assets:
Cash and cash equivalents	¥	273,471				¥	273,288				¥	(183	)
Short-term investments in debt securities		44,012					47,175					3,163
Other short-term investments		201,817					158,765					(43,052	)
Trade notes receivables		19,536					19,349					(187	)
Trade accounts receivables		208,404					225,578					17,174
Less allowances for doubtful accounts and sales returns		(4,795	)				(4,583	)				212
Inventories		232,899					270,336					37,437
Advance payments		72,207					68,685					(3,522	)
Deferred income taxes		43,035					42,014					(1,021	)
Other current assets		38,915					39,828					913

Total current assets		1,129,501			58.0		1,140,435			57.3		10,934

Non-current assets:
Investments and advances:
Investments in and advances to affiliates and unconsolidated subsidiaries		1,219					1,597					378
Long-term investments in debt and equity securities		377,075					372,779					(4,296	)
Other long-term investments		15,585					17,501					1,916

Total investments and advances		393,879			20.3		391,877			19.7		(2,002	)

Property, plant and equipment:
Land		59,638					60,600					962
Buildings		288,992					301,911					12,919
Machinery and equipment		706,474					719,146					12,672
Construction in progress		7,227					17,035					9,808
Less accumulated depreciation		(814,577	)				(838,155	)				(23,578	)

Total property, plant and equipment		247,754			12.7		260,537			13.1		12,783

Goodwill		64,701			3.3		89,039			4.5		24,338
Intangible assets		42,160			2.2		49,653			2.5		7,493
Other assets		68,571			3.5		58,354			2.9		(10,217	)

Total non-current assets		817,065			42.0		849,460			42.7		32,395

Total assets	¥	1,946,566			100.0	¥	1,989,895			100.0	¥	43,329


	March 31,												Increase (Decrease)
	2011						2012
	Amount			%			Amount			%
	(Yen in millions)
Current liabilities:
Short-term borrowings	¥	7,852					¥	4,062					¥	(3,790	)
Current portion of long-term debt		10,687						10,610						(77	)
Trade notes and accounts payable		101,265						102,699						1,434
Other notes and accounts payable		61,226						60,993						(233	)
Accrued payroll and bonus		49,092						49,880						788
Accrued income taxes		18,069						12,363						(5,706	)
Other accrued liabilities		24,337						21,740						(2,597	)
Other current liabilities		28,087						29,368						1,281

Total current liabilities		300,615			15.4			291,715			14.6			(8,900	)

Non-current liabilities:
Long-term debt		24,538						21,197						(3,341	)
Accrued pension and severance liabilities		28,924						32,441						3,517
Deferred income taxes		90,005						90,179						174
Other non-current liabilities		19,125						14,997						(4,128	)

Total non-current liabilities		162,592			8.4			158,814			8.0			(3,778	)

Total liabilities		463,207			23.8			450,529			22.6			(12,678	)

Kyocera Corporation shareholders’ equity:
Common stock		115,703						115,703						—
Additional paid-in capital		162,336						162,620						284
Retained earnings		1,268,548						1,327,596						59,048
Accumulated other comprehensive income		(75,633	)					(81,505	)					(5,872	)
Treasury stock, at cost		(50,691	)					(51,228	)					(537	)

Total Kyocera Corporation shareholders’ equity		1,420,263			73.0			1,473,186			74.1			52,923

Noncontrolling interests		63,096			3.2			66,180			3.3			3,084

Total equity		1,483,359			76.2			1,539,366			77.4			56,007

Total liabilities and equity	¥	1,946,566			100.0		¥	1,989,895			100.0		¥	43,329


Note: Accumulated other comprehensive income is as follows:

	March 31,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	(Yen in millions)
Net unrealized gains on securities	¥				32,235		¥				40,735		¥	8,500
Net unrealized losses on derivative financial instruments					(29	)					(70	)		(41	)
Pension adjustments					(3,534	)					(12,290	)		(8,756	)
Foreign currency translation adjustments					(104,305	)					(109,880	)		(5,575	)
Total	¥				(75,633	)	¥				(81,505	)	¥	(5,872	)

(2) Consolidated Statements of Income


	Years ended March 31,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions and shares in thousands, except per share amounts)
Net sales	¥	1,266,924			100.0		¥	1,190,870			100.0		¥	(76,054	)		(6.0	)
Cost of sales		888,869			70.2			870,143			73.1			(18,726	)		(2.1	)

Gross profit		378,055			29.8			320,727			26.9			(57,328	)		(15.2	)
Selling, general and administrative expenses		222,131			17.5			215,152			18.0			(6,979	)		(3.1	)

Profit from operations		155,924			12.3			105,575			8.9			(50,349	)		(32.3	)
Other income (expenses):
Interest and dividend income		12,963			1.0			13,966			1.2			1,003			7.7
Interest expense		(2,259	)		(0.2	)		(2,042	)		(0.2	)		217			—
Foreign currency transaction gains, net		3,824			0.3			4,533			0.4			709			18.5
Equity in losses of affiliates and unconsolidated subsidiaries		(160	)		(0.0	)		(36	)		(0.0	)		124			—
Other, net		2,040			0.2			797			0.0			(1,243	)		(60.9	)

Total other income (expenses)		16,408			1.3			17,218			1.4			810			4.9

Income before income taxes		172,332			13.6			122,793			10.3			(49,539	)		(28.7	)
Income taxes		42,214			3.3			33,098			2.8			(9,116	)		(21.6	)

Net income		130,118			10.3			89,695			7.5			(40,423	)		(31.1	)
Net income attributable to noncontrolling interests		(7,670	)		(0.6	)		(6,794	)		(0.5	)		876			—

Net income attributable to shareholders of Kyocera Corporation	¥	122,448			9.7		¥	82,901			7.0		¥	(39,547	)		(32.3	)

Earnings per share:
Net income attributable to shareholders of Kyocera Corporation:
Basic	¥	667.23					¥	451.90
Diluted	¥	667.23					¥	451.90
Average number of shares of common stock outstanding:
Basic		183,517						183,451
Diluted		183,517						183,451

Note:

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

(3) Consolidated Statements of Equity


	Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock			Kyocera Corporation shareholders’ equity			Noncontrolling interests			Total equity
	(Yen in millions and shares in thousands)
Balance at March 31, 2010 (183,521)	¥	115,703	¥	163,044		¥	1,168,122		¥	(51,010	)	¥	(50,624	)	¥	1,345,235		¥	62,027		¥	1,407,262
Comprehensive income:
Net income							122,448									122,448			7,670			130,118
Other comprehensive income										(24,572	)					(24,572	)		(5,044	)		(29,616	)

Total comprehensive income																97,876			2,626			100,502

Cash dividends paid to Kyocera Corporation’s shareholders							(22,022	)								(22,022	)					(22,022	)
Cash dividends paid to noncontrolling interests																			(1,875	)		(1,875	)
Purchase of treasury stock (8)													(69	)		(69	)					(69	)
Reissuance of treasury stock (0)				0									2			2						2
Stock option plan of subsidiaries				151												151			60			211
Other				(859	)					(51	)					(910	)		258			(652	)

Balance at March 31, 2011 (183,513)		115,703		162,336			1,268,548			(75,633	)		(50,691	)		1,420,263			63,096			1,483,359
Comprehensive income:
Net income							82,901									82,901			6,794			89,695
Other comprehensive income										(5,693	)					(5,693	)		(1,027	)		(6,720	)

Total comprehensive income																77,208			5,767			82,975

Cash dividends paid to Kyocera Corporation’s shareholders							(23,853	)								(23,853	)					(23,853	)
Cash dividends paid to noncontrolling interests																			(2,124	)		(2,124	)
Purchase of treasury stock (69)													(540	)		(540	)					(540	)
Reissuance of treasury stock (0)				0									3			3						3
Stock option plan of subsidiaries				103												103			41			144
Other				181						(179	)					2			(600	)		(598	)

Balance at March 31, 2012 (183,444)	¥	115,703	¥	162,620		¥	1,327,596		¥	(81,505	)	¥	(51,228	)	¥	1,473,186		¥	66,180		¥	1,539,366

(4) Consolidated Statements of Cash Flows


	Years ended March 31,
	2011			2012
	(Yen in millions)
Cash flows from operating activities:
Net income	¥	130,118		¥	89,695
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		71,544			73,120
Provision for doubtful accounts and loss on bad debts		2,039			370
Write-down of inventories		5,291			11,486
Deferred income taxes		6,470			(1,101	)
Equity in losses of affiliates and unconsolidated subsidiaries		160			36
Foreign currency adjustments		506			(759	)
Change in assets and liabilities:
Increase in receivables		(38,043	)		(2,712	)
Increase in inventories		(69,368	)		(39,762	)
(Increase) decrease in advance payment		(20,008	)		3,507
Increase in other current assets		(616	)		(1,094	)
Increase (decrease) in notes and accounts payable		29,422			(10,092	)
Increase (decrease) in accrued income taxes		2,039			(7,771	)
Increase (decrease) in other current liabilities		3,033			(3,489	)
Decrease in other non-current liabilities		(2,871	)		(5,287	)
Other, net		(29	)		2,918

Net cash provided by operating activities		119,687			109,065

Cash flows from investing activities:
Payments for purchases of available-for-sale securities		(11,837	)		(18,970	)
Payments for purchases of held-to-maturity securities		(67,174	)		(74,369	)
Payments for purchases of other securities		(5,173	)		(149	)
Proceeds from sales and maturities of available-for-sale securities		9,568			29,346
Proceeds from maturities of held-to-maturity securities		42,534			74,083
Acquisitions of businesses, net of cash acquired		(1,581	)		(35,454	)
Payments for purchases of property, plant and equipment		(65,844	)		(67,765	)
Payments for purchases of intangible assets		(6,568	)		(6,744	)
Proceeds from sales of property, plant and equipment, and intangible assets		491			939
Acquisition of time deposits and certificate of deposits		(303,482	)		(258,032	)
Withdrawal of time deposits and certificate of deposits		287,376			299,531
Other, net		326			1,533

Net cash used in investing activities		(121,364	)		(56,051	)

Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net		4,044			(13,615	)
Proceeds from issuance of long-term debt		10,708			10,141
Payments of long-term debt		(15,707	)		(19,166	)
Dividends paid		(23,654	)		(25,874	)
Purchase of common stock in treasury		(69	)		(540	)
Reissuance of common stock in treasury		2			3
Other, net		(2,144	)		(1,718	)

Net cash used in financing activities		(26,820	)		(50,769	)

Effect of exchange rate changes on cash and cash equivalents		(11,158	)		(2,428	)

Net decrease in cash and cash equivalents		(39,655	)		(183	)
Cash and cash equivalents at beginning of year		313,126			273,471

Cash and cash equivalents at end of year	¥	273,471		¥	273,288

(5) Basis of Preparation of Consolidated Financial Statements

i) Scope of consolidation

ii) Changes in scope of consolidation and application of the equity method:


Consolidated subsidiaries:
Number of increase	35	Kyocera Display Corporation (former: Optrex Corporation)
		Kyocera Unimerco A/S and others
Number of decrease	9

Affiliates accounted for by the equity method:
Number of increase	2
Number of decrease	1

iii) Summary of significant accounting policies

Kyocera’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

Recently Adopted Accounting Standards

On April 1, 2011, Kyocera adopted the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2009-13, “Multiple-Deliverable Revenue Arrangements—a consensus of the FASB Emerging Issues Task Force” which addressed the accounting for multiple-deliverable arrangements to enable vender to account for products or services separately rather than as a combined unit. This accounting standard addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On April 1, 2011, Kyocera adopted the FASB’s ASU No. 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” This accounting standard modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On January 1, 2012, Kyocera adopted the FASB’s ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This accounting standard amends current U.S. GAAP to create more commonality with IFRSs by harmonizing definitions and disclosure requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

(6) Segment Information

i) Reporting segment:


	March 31,						Increase (Decrease)
	2011			2012			Increase (Decrease)
	Amount			Amount			Amount			%
	(Yen in millions)
Assets by reporting segments:
Fine Ceramic Parts Group	¥	57,682		¥	68,637		¥	10,955			19.0
Semiconductor Parts Group		111,406			112,121			715			0.6
Applied Ceramic Products Group		258,618			265,093			6,475			2.5
Electronic Device Group		351,432			412,897			61,465			17.5
Telecommunications Equipment Group		111,634			109,975			(1,659	)		(1.5	)
Information Equipment Group		247,486			246,834			(652	)		(0.3	)
Others		132,381			138,304			5,923			4.5

		1,270,639			1,353,861			83,222			6.5
Corporate		748,184			727,849			(20,335	)		(2.7	)
Investments in and advances to affiliates and unconsolidated subsidiaries		1,419			1,797			378			26.6
Adjustments and eliminations		(73,676	)		(93,612	)		(19,936	)		—

Total assets	¥	1,946,566		¥	1,989,895		¥	43,329			2.2


	Years ended March 31,				Increase (Decrease)
	2011		2012		Increase (Decrease)
	Amount		Amount		Amount			%
	(Yen in millions)
Depreciation and amortization:
Fine Ceramic Parts Group	¥	5,106	¥	6,767	¥	1,661			32.5
Semiconductor Parts Group		10,786		11,795		1,009			9.4
Applied Ceramic Products Group		13,786		14,843		1,057			7.7
Electronic Device Group		13,818		13,762		(56	)		(0.4	)
Telecommunications Equipment Group		10,172		8,949		(1,223	)		(12.0	)
Information Equipment Group		11,027		10,131		(896	)		(8.1	)
Others		4,767		4,668		(99	)		(2.1	)
Corporate		2,082		2,205		123			5.9

Total	¥	71,544	¥	73,120	¥	1,576			2.2


Capital expenditures:
Fine Ceramic Parts Group	¥	11,319	¥	11,050	¥	(269	)		(2.4	)
Semiconductor Parts Group		12,998		13,279		281			2.2
Applied Ceramic Products Group		17,660		13,001		(4,659	)		(26.4	)
Electronic Device Group		12,118		14,193		2,075			17.1
Telecommunications Equipment Group		3,886		4,142		256			6.6
Information Equipment Group		7,437		6,199		(1,238	)		(16.6	)
Others		2,747		2,800		53			1.9
Corporate		2,515		1,744		(771	)		(30.7	)

Total	¥	70,680	¥	66,408	¥	(4,272	)		(6.0	)

Note:

With regard to Reporting segment information of Net sales and Income before income taxes, please refer to the accompanying “1.BUSINESS RESULTS (1) Analysis of Business Results Consolidated Results by Reporting Segment” on page 5.

ii) Geographic segments (Net sales and Income before income taxes by geographic area):


	Years ended March 31,						Increase (Decrease)
	2011			2012			Increase (Decrease)
	Amount			Amount			Amount			%
	(Yen in millions)
Net sales:
Japan	¥	573,646		¥	576,757		¥	3,111			0.5
Intra-group sales and transfer between geographic areas		451,620			380,978			(70,642	)		(15.6	)

		1,025,266			957,735			(67,531	)		(6.6	)

Asia		184,140			176,636			(7,504	)		(4.1	)
Intra-group sales and transfer between geographic areas		181,027			171,386			(9,641	)		(5.3	)

		365,167			348,022			(17,145	)		(4.7	)

Europe		221,343			214,259			(7,084	)		(3.2	)
Intra-group sales and transfer between geographic areas		33,394			30,134			(3,260	)		(9.8	)

		254,737			244,393			(10,344	)		(4.1	)

United States of America		264,200			199,256			(64,944	)		(24.6	)
Intra-group sales and transfer between geographic areas		28,652			20,550			(8,102	)		(28.3	)

		292,852			219,806			(73,046	)		(24.9	)

Others		23,595			23,962			367			1.6
Intra-group sales and transfer between geographic areas		13,469			11,240			(2,229	)		(16.5	)

		37,064			35,202			(1,862	)		(5.0	)
Adjustments and eliminations		(708,162	)		(614,288	)		93,874			—

Net sales	¥	1,266,924		¥	1,190,870		¥	(76,054	)		(6.0	)

Income before income taxes:
Japan	¥	97,407		¥	62,407		¥	(35,000	)		(35.9	)
Asia		18,657			17,824			(833	)		(4.5	)
Europe		16,464			11,572			(4,892	)		(29.7	)
United States of America		19,966			15,632			(4,334	)		(21.7	)
Others		4,870			1,048			(3,822	)		(78.5	)

		157,364			108,483			(48,881	)		(31.1	)
Corporate		16,882			13,876			(3,006	)		(17.8	)
Equity in losses of affiliates and unconsolidated subsidiaries		(160	)		(36	)		124			—
Adjustments and eliminations		(1,754	)		470			2,224			—

Income before income taxes	¥	172,332		¥	122,793		¥	(49,539	)		(28.7	)

iii) Geographic segments (Net sales by region):

With regard to Information of Geographic segments, please refer to the accompanying “1.BUSINESS RESULTS (1) Analysis of Business Results Net Sales by Geographic Area” on page 6.

(7) Earnings per Share

With regard to earnings per share, please refer to “Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2012” on page 1 and “3. CONSOLIDATED FINANCIAL STATEMENTS (2) Consolidated Statements of Income” on page 15.

(8) Material Subsequent Event

The Environmental Protection Agency Issues Administrative Order to AVX Corporation for Cleanup of New Bedford Harbor

On April 20, 2012, AVX Corporation (AVX), a consolidated subsidiary of Kyocera in the United States, made an announcement that AVX received a notice that the Environmental Protection Agency (EPA) has issued an enforcement order to AVX to implement ongoing remedial work at the New Bedford Harbor Superfund Site in New Bedford, Massachusetts (the Harbor), including dredging PCB-contaminated sediment from the Harbor on April 18, 2012.

Historical course and current situation of this issue are as follows.

In 1992, the United States (on behalf of the EPA and the National Oceanic and Atmospheric Administration) and the Commonwealth of Massachusetts entered into a Consent Decree with AVX for payment of past and future response costs and natural resource damages, subject to certain reopener provisions. AVX paid $66 million, plus interest, in connection with the Consent Decree.

Following the EPA’s 1998 issuance of the “Record of Decision” for the remediation of the Upper and Lower Harbor areas of the Superfund site, the EPA has been performing the remedial design and remedial action work using settlement funds received from AVX and other settling defendants. The EPA estimates that the net present value of additional costs required to complete the Upper and Lower Harbor cleanup may be as much as $401 million.

AVX has been engaged in discussions with the EPA and the Commonwealth of Massachusetts concerning AVX’s potential remaining liabilities at the Harbor. The EPA’s enforcement order includes a delayed effective date of sixty days to provide AVX an opportunity to continue discussions with the governments concerning the extent to which AVX would pay for and/or perform the cleanup of the Harbor.

AVX is currently evaluating the EPA’s enforcement order and determining its response and course of action which may include recording a charge related to this matter in its result of operation and financial condition for fiscal 2012. Any such charge is not reflected in AVX’s consolidated financial results for fiscal 2012, which AVX released on April 25, 2012. Accordingly, a charge related to this matter is not reflected in Kyocera’s consolidated financial results for fiscal 2012 in this Form 6-K.

Kyocera plans to make an announcement immediately after any progress in this matter occurs.

(9) Cautionary Statement for Premise of a Going Concern

None.

Number of consolidated subsidiaries

Kyocera Document Solutions Inc.

(former: Kyocera Mita Corporation)

AVX Corporation

Kyocera International, Inc. and others

Number of affiliates accounted for by the equity method