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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 October 2013

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):  ¨

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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.

 

Date: October 31, 2013

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Information furnished on this form:

EXHIBITS

 

Exhibit     Number
1.		Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Six Months Ended September 30, 2013
2.		Notice relating to Distribution of Interim Dividends and Revision of Amount of Dividends Forecast for the Year Ending March 31, 2014

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Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Six Months Ended September 30, 2013

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 Six Months Ended September 30, 2013

 

(1) Consolidated results of operations																			(% of change from previous period)
		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				%
Six Months ended September 30, 2013			699,663				15.0				58,203				124.8				69,053				93.3				42,930				69.2
Six Months ended September 30, 2012			608,431				0.7				25,891				(61.8	)			35,732				(52.7	)			25,371				(45.8	)

(Note) Comprehensive income:

159,209 million yen for the six months ended September 30, 2013, 487.2% of change from previous year.

27,114 million yen for the six months ended September 30, 2012, 17.0% 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
		Yen				Yen
Six Months ended September 30, 2013			117.02				117.02
Six Months ended September 30, 2012			69.15				69.15

At the meeting of the Board of Directors of Kyocera Corporation held on August 28, 2013, a resolution was made to undertake a stock split and a stock split at the ratio of two for one of all common shares was undertaken on October 1, 2013. “Net income attributable to shareholders of Kyocera Corporation per share–Basic” and “Net income attributable to shareholders of Kyocera Corporation per share–Diluted” are computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.

(2) Consolidated financial condition

 

		Total assets				Total equity				Kyocera Corporation shareholders’ equity				Kyocera  Corporation shareholders’ equity to total assets
		Million yen				Million yen				Million yen				%
September 30, 2013			2,479,047				1,861,819				1,788,714				72.2
March 31, 2013			2,282,853				1,714,942				1,646,157				72.1

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, 2013			—				60.00				—				60.00				120.00
Year ending March 31, 2014			—				80.00				—				40.00				—

(Note) The above “Year-end” dividend per share of 40.00 yen for the year ending March 31, 2014 is the forecast based on the number of shares after the stock split at the ratio of two for one of all common shares, which was undertaken on October 1, 2013. The forecast of “Annual” dividend for the year ending March 31, 2014 is essentially equal to the original forecast of 160.00 yen, which was previously announced on April 25, 2013, before the stock split.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2014

(% of change from 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
Year ending March 31, 2014			1,430,000				11.7				140,000				82.0				150,000				48.0				96,000				44.4				261.67

(Note) Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during six months ended September 30, 2013. This average number of shares is calculated based on the number of shares after the stock split which took effect on October 1, 2013.

 

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(Notes)

(1) Increase or decrease in significant subsidiaries during the six months ended September 30, 2013: None.

(2) Adoption of concise quarterly accounting method or procedure: None.

(3) Changes in accounting policies:

 

(i)

Changes due to adoption of new accounting standards: Please refer to the accompanying “3. OTHER INFORMATION” on page 16.

 

(ii)

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

(4) Number of shares (common stock):

(i) Number of shares issued:

 

(ii) Number of treasury stock:

 

(iii) Average number of shares outstanding:

 

“Number of shares issued,” “Number of treasury stock” and “Average number of shares outstanding” are described under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.

Presentation of Situation of Review Procedure

The consolidated financial information included in this report is out of scope of review procedure under the Financial Instruments and Exchange Law of Japan. Review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.

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 11.

 

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Accompanying Information

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Six Months Ended September 30, 2013

Economic Situation and Business Environment

During the six months ended September 30, 2013 (“the first half”), the Japanese economy registered upward momentum amid expectations regarding the impact of governmental economic policy and financial measures, evident primarily in growth in exports and personal consumption coupled with revitalization of investment activity, particularly public investment. Overseas, the U.S. economy recovered moderately on the back of steady personal consumption and capital investment. Meanwhile, the European economy continued to stagnate, despite showing signs of bottoming out. While the Chinese economy continues to show rapid growth, the pace of this growth has begun to taper off.

In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera”), shipment volume was down for conventional mobile phones, PCs and flat-screen TVs compared with the six months ended September 30, 2012 (“the previous first half”) while shipment volume of smartphones and tablet PCs increased. The solar energy market in Japan grew significantly compared with the previous first half due primarily to strong growth in demand in the public and commercial sectors.

Consolidated Financial Results

Consolidated net sales for the first half amounted to ¥699,663 million, an increase of ¥91,232 million, or 15.0%, compared with ¥608,431 million in the previous first half due to increased sales in the Applied Ceramic Products Group, particularly in the solar energy business, the Telecommunications Equipment Group and the Information Equipment Group combined with the effects of depreciation of the yen.

In terms of profit, Kyocera enhanced profitability in all reporting segments of the Components Business, primarily the Applied Ceramic Products Group, as a result of sales growth and improved productivity. Also, profit grew considerably due to the absence of the environmental remediation charge of ¥21.3 billion recorded in the previous first half at AVX Corporation, a U.S.-based consolidated subsidiary (please refer to “(3) Financial Settlement between AVX Corporation, the United States Environmental Protection Agency and Commonwealth of Massachusetts regarding the New Bedford Harbor Superfund Site” on page 8). Profit from operations increased by ¥32,312 million, or 124.8%, to ¥58,203 million, compared with ¥25,891 million in the previous first half. Income before income taxes increased by ¥33,321 million, or 93.3%, to ¥69,053 million, compared with ¥35,732 million in the previous first half, and net income attributable to shareholders of Kyocera Corporation increased by ¥17,559 million, or 69.2%, to ¥42,930 million, compared with ¥25,371 million in the previous first half.

Average exchange rates for the first half were ¥99 to the U.S. dollar, marking depreciation of ¥20 (approximately 25%) from ¥79 in the previous first half, and ¥130 to the Euro, marking depreciation of ¥29 (approximately 29%) from ¥101 in the previous first half. As a result, net sales and income before income taxes were pushed up by approximately ¥79 billion and ¥16 billion, respectively, compared with the previous first half.

 

		Six months ended September 30,																Increase (Decrease)
		2012								2013
		Amount				%				Amount				%				Amount				%
		(Yen in millions, except per share amounts and exchange rates)
Net sales		¥	608,431				100.0			¥	699,663				100.0			¥	91,232				15.0
Profit from operations			25,891				4.3				58,203				8.3				32,312				124.8
Income before income taxes			35,732				5.9				69,053				9.9				33,321				93.3
Net income attributable to shareholders of Kyocera Corporation			25,371				4.2				42,930				6.1				17,559				69.2
Diluted earnings per share attributable to shareholders of Kyocera Corporation			69.15				—				117.02				—				—				—
Average US$ exchange rate			79				—				99				—				—				—
Average Euro exchange rate			101				—				130				—				—				—

Note:

At the meeting of the Board of Directors of Kyocera Corporation held on August 28, 2013, a resolution was made to undertake a stock split and a stock split at the ratio of two for one of all common shares was undertaken effective on October 1, 2013. “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.

 

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Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Sales in this reporting segment remained roughly unchanged from the previous first half due to growth in sales of components for automotive markets offset by a decline in component demand for the digital consumer equipment market, particularly flat-screen TVs and PCs. However, operating profit increased compared with the previous first half due mainly to the effect of a reduction in costs.

2) Semiconductor Parts Group

Sales and operating profit in this reporting segment increased compared with the previous first half due to growth in sales of ceramic packages for smartphones and increased demand for organic packages primarily for high-end servers.

3) Applied Ceramic Products Group

Sales in the solar energy business increased substantially in the public and commercial sectors in Japan, and, in addition, sales in the cutting tool business also increased in automotive related areas. As a result, sales in this reporting segment increased significantly over the previous first half. Operating profit increased compared with the previous first half due to higher sales in the solar energy business and the effects of a reduction in costs.

4) Electronic Device Group

Sales in this reporting segment increased compared with the previous first half due to growth in sales of capacitors and connectors, as well as the effect of the yen’s depreciation. Operating profit increased substantially compared with the previous first half due to the absence of the environmental remediation charge at AVX Corporation recorded in the previous first half as well as to the effects of higher sales and a reduction in costs.

5) Telecommunications Equipment Group

Sales in this reporting segment increased compared with the previous first half due primarily to growth in sales of mobile phones overseas on the back of vigorous new product introductions and an increase in the number of telecommunication carrier adopting Kyocera’s products. However, operating profit decreased compared with the previous first half due to the impact of fierce competition in the Japanese market.

6) Information Equipment Group

Sales volume increased mainly in Europe and Asia due to new product introductions as well as vigorous market cultivation and sales expansion activities. The depreciation of the yen also contributed to the increase in sales in this reporting segment compared with the previous first half. However, operating profit decreased compared with the previous first half due primarily to an increase in sales promotion costs.

7) Others

Sales in this reporting segment increased compared with the previous first half due mainly to an increase in sales at Kyocera Communication Systems Co., Ltd. Operating profit decreased, however, due to an increase in R&D expenses for the development of new technologies and new products.

 

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Net Sales by Reporting Segment

 

		Six months ended September 30,																Increase (Decrease)
		2012								2013
		Amount				%				Amount				%				Amount				%
		(Yen in millions)
Fine Ceramic Parts Group		¥	38,399				6.3			¥	38,187				5.5			¥	(212	)			(0.6	)
Semiconductor Parts Group			82,483				13.6				87,063				12.4				4,580				5.6
Applied Ceramic Products Group			85,424				14.0				127,515				18.2				42,091				49.3
Electronic Device Group			140,815				23.1				147,451				21.1				6,636				4.7
Total Components Business			347,121				57.0				400,216				57.2				53,095				15.3
Telecommunications Equipment Group			84,333				13.9				96,557				13.8				12,224				14.5
Information Equipment Group			116,787				19.2				144,525				20.7				27,738				23.8
Total Equipment Business			201,120				33.1				241,082				34.5				39,962				19.9
Others			74,861				12.3				79,713				11.4				4,852				6.5
Adjustments and eliminations			(14,671	)			(2.4	)			(21,348	)			(3.1	)			(6,677	)			—
Net sales		¥	608,431				100.0			¥	699,663				100.0			¥	91,232				15.0
Operating Profit (Loss) by Reporting Segment
		Six months ended September 30,																Increase (Decrease)
		2012								2013
		Amount				%*				Amount				%*				Amount				%
		(Yen in millions)
Fine Ceramic Parts Group		¥	4,535				11.8			¥	5,762				15.1			¥	1,227				27.1
Semiconductor Parts Group			13,862				16.8				16,041				18.4				2,179				15.7
Applied Ceramic Products Group			5,288				6.2				14,834				11.6				9,546				180.5
Electronic Device Group			(11,879	)			—				14,662				9.9				26,541				—
Total Components Business			11,806				3.4				51,299				12.8				39,493				334.5
Telecommunications Equipment Group			801				0.9				266				0.3				(535	)			(66.8	)
Information Equipment Group			11,106				9.5				10,449				7.2				(657	)			(5.9	)
Total Equipment Business			11,907				5.9				10,715				4.4				(1,192	)			(10.0	)
Others			4,345				5.8				2,001				2.5				(2,344	)			(53.9	)
Operating profit			28,058				4.6				64,015				9.1				35,957				128.2
Corporate gains and equity in earnings of affiliates and an unconsolidated subsidiary			8,136				—				5,370				—				(2,766	)			(34.0	)
Adjustments and eliminations			(462	)			—				(332	)			—				130				—
Income before income taxes		¥	35,732				5.9			¥	69,053				9.9			¥	33,321				93.3

*	% to net sales of each corresponding segment

 

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Net Sales by Geographic Area

1) Japan

Sales in Japan for the first half increased compared with the previous first half due primarily to an increase in sales in the solar energy business in the public and commercial sectors.

2) Asia

Sales in Asia for the first half increased compared with the previous first half due to an increase in sales in the Electronic Device Group including connectors and capacitors, and in the Information Equipment Group, as well as to the effect of the yen’s depreciation.

3) Europe

Sales in Europe for the first half increased compared with the previous first half due primarily to an increase in sales in the Information Equipment Group affected by growth in sales volume of printers and multifunctional products and the yen’s depreciation.

4) United States of America

Sales in the United States of America for the first half increased compared with the previous first half due to sales growth in the Telecommunications Equipment Group resulting from increased sales volume of mobile phones, and to an increase in sales in the Information Equipment Group affected by growth in sales volume of printers and multifunctional products, as well as to the effect of the yen’s depreciation.

5) Others

Sales in Others for the first half increased compared with the previous first half due to an increase in sales in the Information Equipment Group and the Telecommunications Equipment Group.

 

		Six months ended September 30,																Increase (Decrease)
		2012								2013
		Amount				%				Amount				%				Amount				%
		(Yen in millions)
Japan		¥	274,848				45.2			¥	299,430				42.8			¥	24,582				8.9
Asia			112,735				18.5				139,201				19.9				26,466				23.5
Europe			93,226				15.3				114,119				16.3				20,893				22.4
United States of America			100,724				16.6				113,870				16.3				13,146				13.1
Others			26,898				4.4				33,043				4.7				6,145				22.8
Net sales		¥	608,431				100.0			¥	699,663				100.0			¥	91,232				15.0

 

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(2) Consolidated Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at September 30, 2013 increased by ¥11,489 million to ¥316,943 million from ¥305,454 million at March 31, 2013.

1) Cash flows from operating activities

Net cash provided by operating activities for the first half increased by ¥14,439 million to ¥74,465 million from ¥60,026 million for the previous first half. This was due mainly to that increases in net income and cash inflow adjustments related to receivables exceeded increases in cash outflow adjustments related to notes and accounts payables and other non-current liabilities.

2) Cash flows from investing activities

Net cash used in investing activities for the first half increased by ¥938 million to ¥53,767 million from ¥52,829 million for the previous first half. This was mainly because increases in payment for purchase of securities exceeded decreases in payments for acquisitions, an increase in withdrawal of time deposits and certificate of deposits and an increase in proceeds from sales and maturities of available-for-sale securities.

3) Cash flows from financing activities

Net cash used in financing activities for the first half increased by ¥2,090 million to ¥14,369 million from ¥12,279 million for the previous first half. This was due mainly to a decrease in proceeds from issuance of short-term debt.

 

		Six months ended September 30,
		2012				2013
		(Yen in millions)
Cash flows from operating activities		¥	60,026			¥	74,465
Cash flows from investing activities			(52,829	)			(53,767	)
Cash flows from financing activities			(12,279	)			(14,369	)
Effect of exchange rate changes on cash and cash equivalents			(6,689	)			5,160
Net increase (decrease) in cash and cash equivalents			(11,771	)			11,489
Cash and cash equivalents at beginning of period			273,288				305,454
Cash and cash equivalents at end of period		¥	261,517			¥	316,943

 

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(3)  Financial Settlement between AVX Corporation, the United States Environmental Protection Agency and Commonwealth of Massachusetts regarding the New Bedford Harbor Superfund Site

On October 10, 2012, AVX Corporation (“AVX”), a consolidated subsidiary of Kyocera Corporation in the United States, and the United States Environmental Protection Agency and the Commonwealth of Massachusetts (the “Governments”) announced that they had reached a settlement with respect to the Governments’ ongoing clean-up of the New Bedford Harbor Superfund site in New Bedford, Massachusetts.

AVX’s involvement in this site arose from the operations of an alleged legal predecessor, Aerovox Corporation, which produced liquid filled capacitors adjacent to the harbor from the late 1930s through the early 1970s. Subsequent owners of the facility are dissolved or in bankruptcy. AVX itself never produced this type of capacitor, nor does it do so today.

Following legal action brought in 1983, AVX reached a settlement with the Governments with respect to their claims relating to harbor clean-up and alleged natural resource damages in 1992. That settlement was contained in a Consent Decree whereby AVX paid $72 million, including interest, toward the harbor clean-up and natural resource damages. That Consent Decree included reopener provisions allowing the Governments to institute new proceedings against AVX, including the right to seek to have AVX perform or pay for additional clean-up under certain circumstances.

On April 18, 2012, the United States Environmental Protection Agency issued to AVX a Unilateral Administrative Order directing AVX to perform the remainder of the harbor clean-up, pursuant to the reopener provisions referred to the above.

After settlement negotiations, including mediation, between the parties, the current settlement with the Governments was reached whereby AVX will pay $366.25 million, plus interest computed from August 1, 2012, in three installments over a two-year period for use by the Governments to complete the clean-up of the harbor, and the United States Environmental Protection Agency will withdraw the Unilateral Administrative Order.

The agreement is set forth in a Supplemental Consent Decree that modifies certain provisions of the 1992 Consent Decree, including elimination of the Governments’ right to invoke any clean-up reopener provisions in the future. The United States District Court approved the settlement on September 19, 2013. A third party has until November 18, 2013 to file an appeal of entry of the Supplemental Consent Decree.

On October 18, 2013, AVX paid the initial settlement payment of ¥13,068 million ($133.35 million), plus interest into a court-managed registry account. This payment and any other payments made by AVX into the registry account will be disbursed to the Governments upon finalization of any appeal processes.

AVX and Kyocera recorded a charge with respect to this matter of ¥7,900 million ($100 million) for the year ended March 31, 2012, and ¥21,300 million ($266.25 million) for the three months ended June 30, 2012, which were included in selling general and administrative expenses in the consolidated statements of income.

(4)  Acquisition of Shares of NEC Toppan Circuit Solutions, Inc.

Kyocera acquired 100% of the shares of NEC Toppan Circuit Solutions, Inc. (currently Kyocera Circuit Solutions, Inc.), a printed circuit board (“PCB”) manufacturing company, and made it a consolidated subsidiary as of October 1, 2013 in order to further strengthen and expand its organic substrate business. This company supplies high-density PCBs for a wide range of markets, from industrial applications to digital consumer equipment such as smartphones. It also possesses advanced technologies relating to low-profile substrates, enabling development of the world’s lowest profile component-embedded PCBs. Through this consolidation, Kyocera seeks to strengthen its development of new products by pursuing synergies with the technologies it already possessed, and to further expand sales by enhancing its sales network.

 

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(5)  Consolidated Financial Forecasts for the Year Ending March 31, 2014

In the six months ending March 31, 2014 (“the second half”), Kyocera forecasts a continued increase in demand for solar energy systems and expects result from the Applied Ceramic Products Group to exceed its initial projections. In addition, the newly consolidated Kyocera Circuit Solutions, Inc. will begin contributing to Kyocera’s results from October 2013. Taking these factors into account, Kyocera has revised its consolidated sales forecasts announced in April 2013 for the year ending March 31, 2014, as follows. Based on the first half results and the outlook for the business environment in the second half, sales and profit forecasts for each of the consolidated reporting segments have been revised as well.

Kyocera has also revised its forecasts of average exchange rates for the second half from the projections announced in August 2013, from ¥95 to ¥97 against the U.S. dollar and from ¥123 to ¥130 against the Euro. As a result, full-year forecasts of average exchange rates for the year ending March 31, 2014 have been revised to ¥98 to the U.S. dollar and ¥130 to the Euro.

Kyocera will strive to continue securing orders, reducing costs and strengthening its development of new products by leveraging the overall capabilities of the Kyocera Group and will aim to achieve these full-year financial forecasts for the year ending March 31, 2014.

 

		Results for the year ended March 31, 2013								Forecasts for the year ending March 31, 2014 announced on																Increase (Decrease) to Results
										April 25, 2013 (Previous)								October 31, 2013 (Revised)
		Amount				%				Amount				%				Amount				%				%
		(Yen in millions, except exchange rates)
Net sales		¥	1,280,054				100.0			¥	1,400,000				100.0			¥	1,430,000				100.0				11.7
Profit from operations			76,926				6.0				140,000				10.0				140,000				9.8				82.0
Income before income taxes			101,363				7.9				150,000				10.7				150,000				10.5				48.0
Net income attributable to shareholders of Kyocera Corporation			66,473				5.2				96,000				6.9				96,000				6.7				44.4
Diluted earnings per share attributable to shareholders of Kyocera Corporation			181.18				—				261.67				—				261.67				—				—
Average US$ exchange rate			83				—				96				—				98				—				—
Average Euro exchange rate			107				—				124				—				130				—				—

Notes:

(1)	“Diluted earnings per share attributable to shareholders of Kyocera Corporation” announced on October 31, 2013 (Revised) is computed based on the average number of shares outstanding during the six months ended September 30, 2013.

(2)	“Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.

(3)	“Diluted earnings per share attributable to shareholders of Kyocera Corporation” and “Average exchange rates against the U.S. dollar and the Euro” as set forth in the previous forecast, have been revised on August 1, 2013.

 

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Net Sales by Reporting Segment

 

		Results for the year ended March 31, 2013								Forecasts for the year ending March 31, 2014 announced on																Increase (Decrease) to Results
										April 25, 2013 (Previous)								October 31, 2013 (Revised)
		Amount				%				Amount				%				Amount				%				%
		(Yen in millions)
Fine Ceramic Parts Group		¥	74,852				5.9			¥	82,500				5.9			¥	82,500				5.8				10.2
Semiconductor Parts Group			167,241				13.1				192,500				13.8				199,000				13.9				19.0
Applied Ceramic Products Group			211,439				16.5				227,000				16.2				257,000				18.0				21.5
Electronic Device Group			271,570				21.2				282,000				20.1				282,000				19.7				3.8
Total Components Business			725,102				56.7				784,000				56.0				820,500				57.4				13.2
Telecommunications Equipment Group			177,314				13.8				191,000				13.6				193,000				13.5				8.8
Information Equipment Group			250,534				19.6				280,000				20.0				290,000				20.3				15.8
Total Equipment Business			427,848				33.4				471,000				33.6				483,000				33.8				12.9
Others			159,902				12.5				176,000				12.6				173,000				12.1				8.2
Adjustments and eliminations			(32,798	)			(2.6	)			(31,000	)			(2.2	)			(46,500	)			(3.3	)			—
Net sales		¥	1,280,054				100.0			¥	1,400,000				100.0			¥	1,430,000				100.0				11.7

Operating Profit (Loss) by Reporting Segment

 

		Results for the year ended March 31, 2013								Forecasts for the year ending March 31, 2014 announced on																Increase (Decrease) to Results
										April 25, 2013 (Previous)								October 31, 2013 (Revised)
		Amount				%*				Amount				%*				Amount				%*				%
		(Yen in millions)
Fine Ceramic Parts Group		¥	7,614				10.2			¥	12,000				14.5			¥	13,000				15.8				70.7
Semiconductor Parts Group			30,379				18.2				36,000				18.7				32,000				16.1				5.3
Applied Ceramic Products Group			17,924				8.5				24,000				10.6				29,600				11.5				65.1
Electronic Device Group			(4,014	)			—				28,200				10.0				28,000				9.9				—
Total Components Business			51,903				7.2				100,200				12.8				102,600				12.5				97.7
Telecommunications Equipment Group			1,340				0.8				6,400				3.4				5,000				2.6				273.1
Information Equipment Group			21,750				8.7				28,000				10.0				25,000				8.6				14.9
Total Equipment Business			23,090				5.4				34,400				7.3				30,000				6.2				29.9
Others			10,542				6.6				8,600				4.9				6,400				3.7				(39.3	)
Operating profit			85,535				6.7				143,200				10.2				139,000				9.7				62.5
Corporate and others			15,828				—				6,800				—				11,000				—				(30.5	)
Income before income taxes		¥	101,363				7.9			¥	150,000				10.7			¥	150,000				10.5				48.0

*	% to net sales of each corresponding segment

 

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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:

 

(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 the yen’s appreciation, 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)	Shortages and rising costs of electricity affecting our production and sales activities;

 

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

 

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

 

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

 

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

 

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

 

(13)	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;

 

(14)	Unintentional conflict with laws and regulations, or the possibility that newly enacted laws and regulations may limit our business operations;

 

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

 

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

 

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

 

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

 

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

 

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

 

(21)	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.

 

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2. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)

 

		March 31, 2013								September 30, 2013								Increase (Decrease)
		Amount				%				Amount				%
		(Yen in millions)
Current assets:
Cash and cash equivalents		¥	305,454							¥	316,943							¥	11,489
Short-term investments in debt securities			43,893								86,530								42,637
Other short-term investments			179,843								157,483								(22,360	)
Trade notes receivables			27,061								24,880								(2,181	)
Trade accounts receivables			268,927								259,628								(9,299	)
Less allowances for doubtful accounts and sales returns			(4,705	)							(4,791	)							(86	)
Inventories			296,450								321,380								24,930
Advance payments			65,812								63,291								(2,521	)
Deferred income taxes			47,349								45,571								(1,778	)
Other current assets			38,299								40,395								2,096
Total current assets			1,268,383				55.6				1,311,310				52.9				42,927
Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities			506,490								659,020								152,530
Other long-term investments			12,661								13,553								892
Total investments and advances			519,151				22.7				672,573				27.1				153,422
Property, plant and equipment:
Land			61,808								62,691								883
Buildings			323,014								333,265								10,251
Machinery and equipment			788,692								809,353								20,661
Construction in progress			13,546								9,186								(4,360	)
Less accumulated depreciation			(918,236	)							(945,320	)							(27,084	)
Total property, plant and equipment			268,824				11.8				269,175				10.9				351
Goodwill			103,425				4.5				107,298				4.3				3,873
Intangible assets			54,583				2.4				55,197				2.2				614
Other assets			68,487				3.0				63,494				2.6				(4,993	)
Total non-current assets			1,014,470				44.4				1,167,737				47.1				153,267
Total assets		¥	2,282,853				100.0			¥	2,479,047				100.0			¥	196,194

 

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		March 31, 2013								September 30, 2013								Increase (Decrease)
		Amount				%				Amount				%
		(Yen in millions)
Current liabilities:
Short-term borrowings		¥	3,135							¥	2,720							¥	(415	)
Current portion of long-term debt			9,817								10,482								665
Trade notes and accounts payable			111,249								124,513								13,264
Other notes and accounts payable			52,018								44,310								(7,708	)
Accrued payroll and bonus			52,420								54,934								2,514
Accrued income taxes			22,214								16,870								(5,344	)
Other accrued liabilities			39,135								52,871								13,736
Other current liabilities			36,642								30,574								(6,068	)
Total current liabilities			326,630				14.3				337,274				13.6				10,644
Non-current liabilities:
Long-term debt			20,855								21,830								975
Accrued pension and severance liabilities			36,322								34,791								(1,531	)
Deferred income taxes			146,229								194,866								48,637
Other non-current liabilities			37,875								28,467								(9,408	)
Total non-current liabilities			241,281				10.6				279,954				11.3				38,673
Total liabilities			567,911				24.9				617,228				24.9				49,317
Kyocera Corporation shareholders’ equity:
Common stock			115,703								115,703								—
Additional paid-in capital			163,062								163,091								29
Retained earnings			1,368,512								1,400,436								31,924
Accumulated other comprehensive income			50,138								160,779								110,641
Common stock in treasury, at cost			(51,258	)							(51,295	)							(37	)
Total Kyocera Corporation shareholders’ equity			1,646,157				72.1				1,788,714				72.2				142,557
Noncontrolling interests			68,785				3.0				73,105				2.9				4,320
Total equity			1,714,942				75.1				1,861,819				75.1				146,877
Total liabilities and equity		¥	2,282,853				100.0			¥	2,479,047				100.0			¥	196,194

Note: Accumulated other comprehensive income is as follows:

 

		March 31, 2013				September 30, 2013				Increase (Decrease)
		(Yen in millions)
Net unrealized gains on securities		¥	135,248			¥	227,396			¥	92,148
Net unrealized losses on derivative financial instruments			(68	)			(242	)			(174	)
Pension adjustments			(23,415	)			(23,919	)			(504	)
Foreign currency translation adjustments			(61,627	)			(42,456	)			19,171
Total		¥	50,138			¥	160,779			¥	110,641

 

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

Consolidated Statements of Income

 

		Six months ended September 30,																Increase (Decrease)
		2012								2013
		Amount				%				Amount				%				Amount				%
		(Yen in millions and shares in thousands, except per share amounts)
Net sales		¥	608,431				100.0			¥	699,663				100.0			¥	91,232				15.0
Cost of sales			451,798				74.3				518,916				74.2				67,118				14.9
Gross profit			156,633				25.7				180,747				25.8				24,114				15.4
Selling, general and administrative expenses			130,742				21.4				122,544				17.5				(8,198	)			(6.3	)
Profit from operations			25,891				4.3				58,203				8.3				32,312				124.8
Other income (expenses) :
Interest and dividend income			7,305				1.2				8,692				1.2				1,387				19.0
Interest expense			(861	)			(0.2	)			(1,022	)			(0.1	)			(161	)			—
Foreign currency transaction gains, net			2,350				0.4				1,768				0.3				(582	)			(24.8	)
Other, net			1,047				0.2				1,412				0.2				365				34.9
Total other income (expenses)			9,841				1.6				10,850				1.6				1,009				10.3
Income before income taxes			35,732				5.9				69,053				9.9				33,321				93.3
Income taxes			11,877				2.0				23,281				3.4				11,404				96.0
Net income			23,855				3.9				45,772				6.5				21,917				91.9
Net income attributable to noncontrolling interests			1,516				0.3				(2,842	)			(0.4	)			(4,358	)			—
Net income attributable to shareholders of Kyocera Corporation		¥	25,371				4.2			¥	42,930				6.1			¥	17,559				69.2
Earnings per share:
Net income attributable to shareholders of Kyocera Corporation:
Basic		¥	69.15							¥	117.02
Diluted			69.15								117.02
Average number of shares of common stock outstanding:
Basic			366,886								366,875
Diluted			366,886								366,875

Notes:

(1)

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 is computed based on the diluted average number of shares of stock outstanding during each period.

(2)	“Net income attributable to shareholders of Kyocera Corporation” and “Average number of shares of common stock outstanding” are computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.

 

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Consolidated Statements of Comprehensive Income

 

		Six months ended September 30,								Increase (Decrease)
		2012				2013
		Amount				Amount				Amount
		(Yen in millions)
Net income		¥	23,855			¥	45,772			¥	21,917
Other comprehensive income (loss)—net of taxes
Net unrealized gains on securities			25,009				92,150				67,141
Net unrealized gains (losses) on derivative financial instruments			100				(156	)			(256	)
Pension adjustments			(404	)			(511	)			(107	)
Foreign currency translation adjustments			(21,446	)			21,954				43,400
Total other comprehensive income (loss)			3,259				113,437				110,178
Comprehensive income			27,114				159,209				132,095
Comprehensive income (loss) attributable to noncontrolling interests			4,123				(5,625	)			(9,748	)
Comprehensive income attributable to shareholders of Kyocera Corporation		¥	31,237			¥	153,584			¥	122,347

(3) Notes to the consolidated financial statements

Cautionary Statement for Premise of a Going Concern

None.

Cautionary Statement for Significant Changes in Equity

None.

 

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3. OTHER INFORMATION

Changes in accounting policies

Recently Adopted Accounting Standards

On April 1, 2013, Kyocera adopted the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2011-10, “Derecognition of in Substance Real Estate—a Scope Clarification.” This accounting standard requires the reporting entity to apply the guidance in Accounting Standards Codification (ASC) 360-20, “Property, Plant, and Equipment—Real Estate Sales” to determine whether it should derecognize the in substance real estate when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt. 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, 2013, Kyocera adopted the FASB’s ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This accounting standard permits an entity to first assess qualitative factors to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the impairment test. An entity is not required to calculate the fair value of the indefinite-lived intangible asset unless the entity determines that it is more likely than not that the indefinite-lived intangible asset is impaired. As this accounting standard did not actually change how the impairment would be calculated, the adoption of this accounting standard did not have an impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On July 17, 2013, Kyocera adopted the FASB’s ASU No. 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” This accounting standard permits an entity to use the Fed Funds Effective Swap Rate (Overnight Index Swap Rate) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

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October 31, 2013

To All Persons Concerned,

 

Name of Company Listed:		Kyocera Corporation
Name of Representative:		Goro Yamaguchi, President and Director
		(Code number: 6971, The First Section of the Tokyo Stock Exchange)
Person for inquiry:		Shoichi Aoki Director, Managing Executive Officer and General Manager of Corporate Financial and Accounting Group (Tel: +81-75-604-3500)

Notice relating to Distribution of Interim Dividends and Revision of Amount of

Dividends Forecast for the Year Ending March 31, 2014

This is to advise you that Kyocera Corporation (the “Company”) has adopted a resolution at a meeting of its Board of Directors held on October 31, 2013 in respect of its payment of interim dividends, as set forth below. The Company has also decided to revise its forecast of the total amount of its dividends for the year ending March 31, 2014.

1. Interim dividends

The Company determined the amounts of its dividends as set forth below, based on its basic profit allocation policy.

 

		Determined Amount		Most Recent  Forecast (Published on April 25, 2013)		Interim Dividends in the  Year ended March 31, 2013
Record Date		September 30, 2013		September 30, 2013		September 30, 2012
Dividend per Share		¥80		—		¥60
Total Amount of Dividends		¥14,675 million		—		¥11,006 million
Effective Date		December 5, 2013		—		December 5, 2012
Source of Dividends		Retained earnings		—		Retained earnings

2. Dividend Forecast

The Company undertook a stock split at a ratio of 2 for 1 in respect of all shares of its common stock as of October 1, 2013.

The forecast previously published was based on the number of shares of common stock prior to this stock split. The dividend forecast for the year ending March 31, 2014, taking into account the stock split, is as follows. Please note that this revision is made only in association with the stock split, and there is no substantive change in the forecast for the annual total dividends from the forecast previously published.

 

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		Dividends per Share (yen)
		As of end of semi-annual period				As of end of the year ending March 31, 2014				Annual total dividends
Forecast previously published			—				—			¥	160
Current revision			—			¥	40	*2			—
Dividend resolved to be paid for the year ending March 31, 2014		¥	80	*1			—				—
Dividends for the year ended March 31, 2013		¥	60			¥	60			¥	120

*1: Dividend amount per share is based on number of shares prior to stock split.

*2: Dividend amount per share is based on number of shares after stock split.

3. References

1) Dividends paid for the year ended March 31, 2013 and forecast for the year ending March 31, 2014 based on the number of shares prior to the stock split are as follows:

 

		Dividends per Share (yen)
		As of end of semi-annual period				As of end of the year ending March 31,  2014				Annual total dividends
Forecast for the year ending March 31, 2014		¥	80	*3		¥	80			¥	160
Dividends for the year ended March 31, 2013		¥	60			¥	60			¥	120

*3: As resolved by the Board of Directors of the Company.

2) Financial forecast for the year ending March 31, 2014

 

		Net Sales				Profit from operations				Income before income taxes				Net income attributable to shareholders of Kyocera Corporation
		(Yen in millions)
Current forecast (Published on October 31, 2013)			1,430,000				140,000				150,000				96,000
Previous forecast (Published on April 25, 2013)			1,400,000				140,000				150,000				96,000
Results for the year ended March 31, 2013			1,280,054				76,926				101,363				66,473

 

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Forward-Looking Statements

Certain 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 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 the yen’s appreciation or depreciation, 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)	Shortages and rising costs of electricity affecting our production and sales activities;

 

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

 

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

 

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

 

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

 

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

 

(13)	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;

 

(14)	Unintentional conflict with laws and regulations, or the possibility that newly enacted laws and regulations may limit our business operations;

 

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

 

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

 

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

 

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

 

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

 

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

 

(21)	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.

 

3