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 2014

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 Accounting Group

Date : April 28, 2014

Information furnished on this form:

EXHIBITS

Exhibit

Number

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Year Ended March 31, 2014

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Year Ended March 31, 2014

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, 2014 (Fiscal 2014)


(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 2014		1,447,369		13.1		120,582		56.8			146,268		44.3			88,756		33.5
Fiscal 2013		1,280,054		7.5		76,926		(21.2	)		101,363		(11.8	)		66,473		(16.2	)

(Note) Comprehensive income:

301,582 million yen in the year ended March 31, 2014, 46.6% of change from previous year

205,727 million yen in the year ended March 31, 2013, 164.3% 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 2014		241.93		241.93		5.0		5.9		8.3
Fiscal 2013		181.18		181.18		4.3		4.7		6.0

(Reference) Equity in losses of affiliates and an unconsolidated subsidiary:


(139) million yen in the year ended March 31, 2014		(155) million yen in the year ended March 31, 2013

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 had been undertaken at the beginning of the year ended March 31, 2013 in accordance with the standard related to earnings per share.

(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, 2014		2,636,704		1,987,226		1,910,083		72.5		5,206.48
March 31, 2013		2,282,853		1,714,942		1,646,157		72.1		4,486.91

“Kyocera Corporation shareholders’ equity per share” is computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2013.

(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 2014		149,141		(101,141	)		(32,805	)		335,174
Fiscal 2013		109,489		(66,142	)		(31,431	)		305,454

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 2013		—		60.00		—		60.00		120.00		22,013		33.1		1.4
Fiscal 2014		—		80.00		—		40.00		—		29,350		33.1		1.7
Fiscal 2015 (forecast)		—		—		—		—		80.00				30.3

(Note) The above “Year-end” dividend per share of 40.00 yen for the year ended March 31, 2014 is the forecast based on the number of shares after the stock split which was undertaken on October 1, 2013. The forecast of “Annual” dividend for the year ended 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. Dividends per share for the year ending March 31, 2015 are forecasted to be 80.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2015 (Fiscal 2015)


								(% 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 2015		1,580,000		9.2		135,000		12.0		158,000		8.0		97,000		9.3		264.40

(Note) 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, 2014. The average number of shares outstanding is computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2014.

(Notes)

(1) Increase or decrease in significant subsidiaries during the year ended March 31, 2014: 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 20.

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

(3) Number of shares (common stock):

(i) Number of shares issued:


377,618,580 shares at March 31, 2014		382,618,580 shares at March 31, 2013

(ii) Number of treasury stock:


10,751,865 shares at March 31, 2014		15,738,940 shares at March 31, 2013

(iii) Average number of shares outstanding:


366,871,605 shares in the year ended March 31, 2014		366,883,754 shares in the year ended March 31, 2013

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

Kyocera Corporation adopted a resolution to retire treasury stock pursuant to Article 178 of the Companies Act of Japan at its meeting of the Board of Directors held on January 29, 2014, and Kyocera Corporation retired 5,000,000 shares of its treasury stock of which type is common stock on February 12, 2014.

(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, 2014:


(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 2014		634,913		6.5		27,816		(1.5	)		77,589		20.1			64,769		23.3
Fiscal 2013		596,112		4.5		28,237		59.5			64,589		(3.9	)		52,527		5.4


	Net income per share -Basic		Net income per share -Diluted
	Yen		Yen
Fiscal 2014		176.54		—
Fiscal 2013		143.17		—

“Net income per share-Basic” and “Net income per share-Diluted” are computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2013.

(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, 2014		1,934,854		1,541,203		79.7		4,200.99
March 31, 2013		1,648,295		1,344,538		81.6		3,664.79

“Net assets per share” is computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at the beginning of the year ended March 31, 2013.

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 10.

Accompanying Information

1. ANALYSIS OF BUSINESS RESULTS AND FINANCIAL CONDITION

(1) Analysis of Business Results

[Business Results for the Year Ended March 31, 2014]

Economic Situation and Business Environment

The Japanese economy displayed a recovery trend in the year ended March 31, 2014 (“fiscal 2014”), supported by an increase in public investment and solid growth in personal consumption. Overseas, the U.S. economy expanded on the back of increases in personal consumption, private investment and exports. The Chinese economy also continued to grow steadily. On the other hand, the European economy remained weak despite signs of recovery.

In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”), shipment volume of conventional mobile phone handsets and PCs declined compared with the previous fiscal year ended March 31, 2013 (“fiscal 2013”). In contrast, shipment volume of smartphones and tablet PCs increased. In the automotive market, sales volume increased steadily, particularly in China and the United States, while the solar energy market in Japan expanded significantly compared with fiscal 2013 due to remarkable growth in demand in the public and commercial sectors.

Consolidated Financial Results

Sales and profit increased in fiscal 2014 compared with fiscal 2013 as Kyocera decisively took advantage of increased demand in key markets and worked to obtain orders and reduce costs by leveraging the collective strength of the Kyocera Group. Consolidated net sales for fiscal 2014 increased by 13.1%, or ¥167,315 million, to ¥1,447,369 million, compared with ¥1,280,054 million for fiscal 2013, on the back of increased sales in all reporting segments. This result was a new record high.

Profit increased significantly compared with fiscal 2013 in both the Components Business and the Equipment Business due to the effect of higher sales and efforts to enhance productivity. In addition, in fiscal 2013 an environmental remediation charge was recorded at AVX Corporation, a U.S.-based consolidated subsidiary (please refer to “(10) Financial Settlement between AVX Corporation, the United States Environmental Protection Agency and Commonwealth of Massachusetts regarding the New Bedford Harbor Superfund Site” on page 24). As a result, profit from operations increased by 56.8%, or ¥43,656 million, to ¥120,582 million, compared with ¥76,926 million for fiscal 2013. Income before income taxes increased by 44.3%, or ¥44,905 million, to ¥146,268 million, compared with ¥101,363 million for fiscal 2013. Net income attributable to shareholders of Kyocera Corporation for fiscal 2014 increased by 33.5%, or ¥22,283 million, to ¥88,756 million, compared with ¥66,473 million for fiscal 2013.


	Years ended March 31,								Increase (Decrease)
	2013				2014				Increase (Decrease)
	Amount		%		Amount		%		Amount		%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	1,280,054		100.0	¥	1,447,369		100.0	¥	167,315		13.1
Profit from operations		76,926		6.0		120,582		8.3		43,656		56.8
Income before income taxes		101,363		7.9		146,268		10.1		44,905		44.3
Net income attributable to shareholders of Kyocera Corporation		66,473		5.2		88,756		6.1		22,283		33.5
Diluted earnings per share attributable to shareholders of Kyocera Corporation		181.18		—		241.93		—		—		—
Average US$ exchange rate		83		—		100		—		—		—
Average Euro exchange rate		107		—		134		—		—		—

Note:

As Kyocera Corporation undertook a stock split at the ratio of two for one of all common shares on October 1, 2013, “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed under the assumption that the stock split had been undertaken at the beginning of the year ended March 31, 2013 in accordance with standard related to earnings per share.

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Sales in this reporting segment increased compared with fiscal 2013 due to steady growth in demand in the industrial machinery market, including for components for semiconductor processing equipment, and in the automotive related market. Operating profit increased significantly due to an increase in sales of core products and the effect of cost reductions.

2) Semiconductor Parts Group

Sales and operating profit increased in this reporting segment compared with fiscal 2013 due to an increase in demand for ceramic packages and organic packages for smartphones etc. despite a decline in demand for packages used in digital cameras. There was also a contribution to sales from Kyocera Circuit Solutions, Inc., which became a consolidated subsidiary of Kyocera in October 2013 with the aim of strengthening the organic substrate business.

3) Applied Ceramic Products Group

Sales in the solar energy business increased considerably mainly in the public and commercial sectors in Japan. Additionally, sales in the cutting tool business increased mainly in the automotive market. As a result, sales and operating profit in this reporting segment increased significantly compared with fiscal 2013 while profitability improved to record a double-digit operating profit ratio.

4) Electronic Device Group

Sales and operating profit in this reporting segment increased compared with fiscal 2013 due to the effect of increased sales of core products and reduced manufacturing costs despite a decline in sales and profit of certain products as a result of the execution of structural reforms. In particular, sales of capacitors and connectors for automobiles and smartphones increased. In addition, operating profit grew significantly owing to the absence of the environmental remediation charge at AVX Corporation recorded in fiscal 2013.

5) Telecommunications Equipment Group

Sales and operating profit in this reporting segment increased compared with fiscal 2013 due to the vigorous introduction in Japan and overseas of new model smartphones and mobile phone handsets with Kyocera’s unique features, such as the Smart Sonic Receiver that transmits sound through vibration, and to an increase in sales volume in overseas markets through development of major customers.

6) Information Equipment Group

Sales volume of hardware grew as an accompaniment to vigorous new product introductions and activities to expand sales. In addition, sales in China etc. expanded based on efforts to cultivate emerging markets. As a result, sales and operating profit increased significantly in this reporting segment compared with fiscal 2013.

7) Others

Sales in this reporting segment increased compared with fiscal 2013 due primarily to an increase in sales at Kyocera Communication Systems Co., Ltd. Operating profit decreased compared with fiscal 2013, however, due to an increase in R&D expenses to develop new technologies and products.

Net Sales by Reporting Segment


	Years ended March 31,												Increase (Decrease)
	2013						2014						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	74,852			5.9		¥	80,020			5.5		¥	5,168			6.9
Semiconductor Parts Group		167,241			13.1			187,891			13.0			20,650			12.3
Applied Ceramic Products Group		211,439			16.5			272,795			18.9			61,356			29.0
Electronic Device Group		271,570			21.2			284,322			19.6			12,752			4.7

Total Components Business		725,102			56.7			825,028			57.0			99,926			13.8
Telecommunications Equipment Group		177,314			13.8			186,749			12.9			9,435			5.3
Information Equipment Group		250,534			19.6			307,848			21.3			57,314			22.9

Total Equipment Business		427,848			33.4			494,597			34.2			66,749			15.6
Others		159,902			12.5			173,137			11.9			13,235			8.3
Adjustments and eliminations		(32,798	)		(2.6	)		(45,393	)		(3.1	)		(12,595	)		—

Net sales	¥	1,280,054			100.0		¥	1,447,369			100.0		¥	167,315			13.1


Operating Profit (Loss) by Reporting Segment
	Years ended March 31,												Increase (Decrease)
	2013						2014						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	7,614			10.2		¥	11,836			14.8		¥	4,222			55.5
Semiconductor Parts Group		30,379			18.2			31,889			17.0			1,510			5.0
Applied Ceramic Products Group		17,924			8.5			33,501			12.3			15,577			86.9
Electronic Device Group		(4,014	)		—			21,160			7.4			25,174			—

Total Components Business		51,903			7.2			98,386			11.9			46,483			89.6
Telecommunications Equipment Group		1,340			0.8			1,437			0.8			97			7.2
Information Equipment Group		21,750			8.7			28,193			9.2			6,443			29.6

Total Equipment Business		23,090			5.4			29,630			6.0			6,540			28.3
Others		10,542			6.6			6,276			3.6			(4,266	)		(40.5	)

Operating profit		85,535			6.7			134,292			9.3			48,757			57.0
Corporate gains and Equity in losses of affiliates and an unconsolidated subsidiary		17,248			—			11,889			—			(5,359	)		(31.1	)
Adjustments and eliminations		(1,420	)		—			87			—			1,507			—

Income before income taxes	¥	101,363			7.9		¥	146,268			10.1		¥	44,905			44.3

*	% to net sales of each corresponding segment

Net Sales by Geographic Area

i) Japan

Sales in Japan increased compared with fiscal 2013 due to an increase in the solar energy business primarily in the public and commercial sectors, as well as to the newly contribution of Kyocera Circuit Solutions, Inc., which became a consolidated subsidiary of Kyocera.

ii) Asia

Sales in Asia increased compared with fiscal 2013 due to an increase in sales in the Information Equipment Group and in the Electronic Device Group such as connectors and capacitors, as well as to the effect of the yen’s depreciation.

iii) Europe

Sales in Europe increased compared with fiscal 2013 due to an increase in sales in the Information Equipment Group and in the Electric Device Group and to the effect of the yen’s depreciation.

iv) United States of America

Sales in the United States of America increased slightly compared with fiscal 2013 due mainly to sales growth in the Information Equipment Group despite a decline in sales of the Electric Device Group.

v) Others

Sales in Others increased compared with fiscal 2013 due to an increase in sales in the Information Equipment Group and the Telecommunications Equipment Group.


	Years ended March 31,								Increase (Decrease)
	2013				2014				Increase (Decrease)
	Amount		%		Amount		%		Amount		%
	(Yen in millions)
Japan	¥	574,202		44.9	¥	643,423		44.4	¥	69,221		12.1
Asia		235,520		18.4		274,512		19.0		38,992		16.6
Europe		198,868		15.5		247,700		17.1		48,832		24.6
United States of America		215,032		16.8		217,230		15.0		2,198		1.0
Others		56,432		4.4		64,504		4.5		8,072		14.3

Net sales	¥	1,280,054		100.0	¥	1,447,369		100.0	¥	167,315		13.1

Implemented Management Measures and Significant Management Decisions made in the year ended March 31, 2014

In October 2013, Kyocera acquired all shares in NEC Toppan Circuit Solutions, Inc. (currently Kyocera Circuit Solutions, Inc.), a printed wiring board (PWB) manufacturing company, in order to further strengthen and expand Kyocera’s organic substrate business and made it a consolidated subsidiary. Kyocera circuit solutions, Inc. has high-end PWB technologies from low-profile PWBs to high-density multilayer PWBs and extensive business domains, and going forward, efforts will be made to create synergies with Kyocera on both technological and sales fronts, with the aim of strengthening new product development and further expansion of sales and profit in this business.

[Consolidated Forecasts for the Year Ending March 31, 2015]

In the year ending March 31, 2015 (“fiscal 2015”), the Japanese economy is expected to show continued moderate recovery due to growth in public investment despite concerns over the impact of an increase in the consumption tax rate. In overseas economies, the United States is expected to remain robust and the European economy is forecast to rebound as well.

In the information and communications market, production activities for digital consumer equipment are forecast to remain brisk, particularly for smartphones and tablet PCs. In the environment and energy market, demand is expected to increase for solar energy systems in Japan. In automotive related markets, Kyocera projects production activities to expand, especially in Asia. Kyocera will exploit the collective strengths of the Kyocera Group to robustly seize business opportunities in these markets and expand sales.

In addition, Kyocera will work to expand production, mainly of ceramic components, at sites in both Vietnam and India, where operations started in fiscal 2014, in order to meet buoyant demand. At the same time, Kyocera will promote cost reductions to increase profitability.

Kyocera aims to achieve the following full-year financial forecasts for fiscal 2015 by executing these initiatives.


	Results for the year ended March 31, 2014				Forecasts for the year ending March 31, 2015				Increase (Decrease)
	Amount		%		Amount		%		Amount		%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	1,447,369		100.0	¥	1,580,000		100.0		132,631		9.2
Profit from operations		120,582		8.3		135,000		8.5		14,418		12.0
Income before income taxes		146,268		10.1		158,000		10.0		11,732		8.0
Net income attributable to shareholders of Kyocera Corporation		88,756		6.1		97,000		6.1		8,244		9.3
Diluted earnings per share attributable to shareholders of Kyocera Corporation		241.93		—		264.40		—		—		—
Average US$ exchange rate		100		—		100		—		—		—
Average Euro exchange rate		134		—		137		—		—		—

Notes:

(1)	Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the year ended March 31, 2014.

(2)

As Kyocera Corporation undertook a stock split at the ratio of two for one of all common shares on October 1, 2013, “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed under the assumption that the stock split had been undertaken at the beginning of the year ended March 31, 2014 in accordance with the standard related to earnings per share.

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

Net Sales by Reporting Segment


	Results for the year ended March 31, 2014						Forecasts for the year ending March 31, 2015						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	80,020			5.5		¥	91,000			5.7		¥	10,980			13.7
Semiconductor Parts Group		187,891			13.0			224,000			14.2			36,109			19.2
Applied Ceramic Products Group		272,795			18.9			303,000			19.2			30,205			11.1
Electronic Device Group		284,322			19.6			291,000			18.4			6,678			2.3

Total Components Business		825,028			57.0			909,000			57.5			83,972			10.2
Telecommunications Equipment Group		186,749			12.9			205,000			13.0			18,251			9.8
Information Equipment Group		307,848			21.3			335,000			21.2			27,152			8.8

Total Equipment Business		494,597			34.2			540,000			34.2			45,403			9.2
Others		173,137			11.9			178,000			11.3			4,863			2.8
Adjustments and eliminations		(45,393	)		(3.1	)		(47,000	)		(3.0	)		(1,607	)		—

Net sales	¥	1,447,369			100.0		¥	1,580,000			100.0		¥	132,631			9.2


Operating Profit by Reporting Segment

	Results for the year ended March 31, 2014						Forecasts for the year ending March 31, 2015						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	11,836			14.8		¥	13,700			15.1		¥	1,864			15.7
Semiconductor Parts Group		31,889			17.0			33,600			15.0			1,711			5.4
Applied Ceramic Products Group		33,501			12.3			30,300			10.0			(3,201	)		(9.6	)
Electronic Device Group		21,160			7.4			28,900			9.9			7,740			36.6

Total Components Business		98,386			11.9			106,500			11.7			8,114			8.2
Telecommunications Equipment Group		1,437			0.8			8,300			4.0			6,863			477.6
Information Equipment Group		28,193			9.2			33,500			10.0			5,307			18.8

Total Equipment Business		29,630			6.0			41,800			7.7			12,170			41.1
Others		6,276			3.6			6,400			3.6			124			2.0

Operating profit		134,292			9.3			154,700			9.8			20,408			15.2
Corporate and others		11,976			—			3,300			—			(8,676	)		(72.4	)

Income before income taxes	¥	146,268			10.1		¥	158,000			10.0		¥	11,732			8.0

*	% 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:

(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.

(2) Analysis of Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at March 31, 2014 increased by ¥29,720 million to ¥335,174 million from ¥305,454 million at March 31, 2013.

i) Cash flows from operating activities

Net cash provided by operating activities for fiscal 2014 increased by ¥39,652 million to ¥149,141 million from ¥109,489 million for fiscal 2013. This was due mainly that an increase in net income and cash flow adjustment related to receivables exceeded cash flow adjustments related to other current and non-current liabilities.

ii) Cash flows from investing activities

Net cash used in investing activities for fiscal 2014 increased by ¥34,999 million to ¥101,141 million from ¥66,142 million for fiscal 2013. This was due mainly that increases in cash used in purchases of held-to-maturity securities exceeded decreases in cash used in acquisitions of time deposits and certificate of deposits.

iii) Cash flows from financing activities

Net cash used in financing activities for fiscal 2014 increased by ¥1,374 million to ¥32,805 million from ¥31,431 million for fiscal 2013. This was due mainly to increases in dividend paid, which exceeded decreases in payments of short-term borrowings and increases in proceeds from issuance of long-term debt.

Consolidated Cash Flows


	Years ended March 31,
	2013			2014
	(Yen in millions)
Cash flows from operating activities	¥	109,489		¥	149,141
Cash flows from investing activities		(66,142	)		(101,141	)
Cash flows from financing activities		(31,431	)		(32,805	)
Effect of exchange rate changes on cash and cash equivalents		20,250			14,525
Net increase in cash and cash equivalents		32,166			29,720
Cash and cash equivalents at beginning of year		273,288			305,454
Cash and cash equivalents at end of year	¥	305,454		¥	335,174

(3) Basic Profit Distribution Policy and Dividends for the Year Ended March 31, 2014 and for the Year Ending March 31, 2015

i) Basic profit distribution policy for the year ended March 31, 2014

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 payout ratio of 30% or more 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, 2014

Kyocera Corporation undertook a stock split at the ratio of two for one of all common shares on October 1, 2013. Regarding the dividends for the year ended March 31, 2014, Kyocera distributed the interim dividend of 80 yen per share (before the stock split). Pursuant to the aforementioned policies and performance during the year ended March 31, 2014, Kyocera will distribute a year-end dividend for the year ended March 31, 2014 of 40 yen per share. As a result, an annual dividend March 31, 2014 is actually the same amount (160 yen) as we forecasted at the beginning of the year ended March 31, 2014.

iii) Dividend forecast for the year ending March 31, 2015

Dividend amounts for the year ending March 31, 2015 will be decided pursuant to “i) Basic profit distribution policy for the year ended March 31, 2014” set forth above. At present, Kyocera forecasts a total annual dividend in the amount of 80 yen per share, based on its financial forecast for the year ending March 31, 2015.

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 has been pursuing this objective since the company’s earliest days through implementation of the “Kyocera Philosophy,” a corporate philosophy placing people’s hearts at its core, as well as the “Amoeba Management System,” a management system unique to Kyocera which has been developed to implement our corporate philosophy.

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,” “creating new businesses” and “thorough cost reduction.”

(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 double digits or higher.

(3) Medium-term Management Strategy and Management Challenges

Kyocera has a wide range of management resources within the Kyocera Group, from materials technologies such as ceramics to components, devices, equipment, systems and services. Kyocera will strive to enhance development by exploiting the collective strengths of the Kyocera Group, which includes bolstering ties between businesses, and by expanding applications for products and technologies accumulated over the years. Other efforts will be made to increase sales by making the best use of sales networks. By doing so, Kyocera aims to be a high-growth, highly profitable company. Specifically, Kyocera will focus on the following challenges.

i) Expand sales in growth markets

Kyocera views the information and communications market and the environment and energy market, as well as automotive related markets and the medical market, as future growth markets and will strive to further increase sales in these markets. Kyocera has established a dedicated sales division to strengthen marketing activities for these core markets and key customers, and is working to expand sales of a wide range of products within the Kyocera Group, from the Components Business to the Equipment Business.

In the information and communications market, Kyocera will work to expand sales by introducing small, high-performance components for smartphones and tablet PCs, as well as new differentiated telecommunications and information equipment incorporating unique own technologies.

In the environment and energy market, Kyocera will strive to increase sales through the integrated development of its solar energy systems business. In concrete terms, efforts will be made to boost integrated system sales, such as with the release of an energy management system that efficiently controls energy in conjunction with a solar module and an electricity storage unit. Furthermore, Kyocera will develop business in a variety of forms across the design, construction and maintenance of solar energy systems, as well as power generation business.

In automotive related markets, Kyocera will seek to expand sales by strategically linking component and device businesses within the Kyocera Group and working to cultivate customers and develop new products to meet market trends, namely the increased use of electrical systems and equipment in automobiles, enhanced safety and environmental responsiveness.

In the medical market, Kyocera will pursue synergies in technologies and products toward the development of products in new domains in addition to its existing medical materials business, and at the same time will work to create business opportunities by cultivating new markets.

ii) Enhance management foundations

Kyocera will work to expand production in Vietnam and India to overcome global competition and to strengthen service in the Asia region, which holds major production sites of customers. In Japan, Kyocera aims to expand production of high-value-added products and secure high profitability through the further enhancement of production technology in both the Components Business and Equipment Business. Kyocera will also continue seeking opportunities for the acquisition of external management resources in order to strengthen business foundations in existing businesses.

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	March 31,										Increase (Decrease)
	2013					2014
	Amount			%		Amount			%
	(Yen in millions)
Current assets:
Cash and cash equivalents	¥	305,454				¥	335,174					¥29,720
Short-term investments in debt and equity securities		43,893					115,900					72,007
Other short-term investments		179,843					160,331					(19,512	)
Trade notes receivables		27,061					22,054					(5,007	)
Trade accounts receivables		268,927					257,850					(11,077	)
Less allowances for doubtful accounts and sales returns		(4,705	)				(5,062	)				(357	)
Inventories		296,450					335,802					39,352
Advance payments		65,812					59,192					(6,620	)
Deferred income taxes		47,349					41,499					(5,850	)
Other current assets		38,299					44,695					6,396

Total current assets		1,268,383			55.6		1,367,435			51.9		99,052

Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities		506,490					738,212					231,722
Other long-term investments		12,661					14,847					2,186

Total investments and advances		519,151			22.7		753,059			28.6		233,908

Property, plant and equipment:
Land		61,808					63,268					1,460
Buildings		323,014					344,167					21,153
Machinery and equipment		788,692					826,881					38,189
Construction in progress		13,546					11,821					(1,725	)
Less accumulated depreciation		(918,236	)				(975,580	)				(57,344	)

Total property, plant and equipment		268,824			11.8		270,557			10.3		1,733

Goodwill		103,425			4.5		116,632			4.4		13,207
Intangible assets		54,583			2.4		59,326			2.2		4,743
Other assets		68,487			3.0		69,695			2.6		1,208

Total non-current assets		1,014,470			44.4		1,269,269			48.1		254,799

Total assets	¥	2,282,853			100.0	¥	2,636,704			100.0	¥	353,851


	March 31,												Increase (Decrease)
	2013						2014
	Amount			%			Amount			%
	(Yen in millions)
Current liabilities:
Short-term borrowings	¥	3,135					¥	4,064					¥	929
Current portion of long-term debt		9,817						12,360						2,543
Trade notes and accounts payable		111,249						122,424						11,175
Other notes and accounts payable		52,018						48,224						(3,794	)
Accrued payroll and bonus		52,420						56,068						3,648
Accrued income taxes		22,214						23,353						1,139
Other accrued liabilities		39,135						31,347						(7,788	)
Other current liabilities		36,642						29,611						(7,031	)

Total current liabilities		326,630			14.3			327,451			12.4			821

Non-current liabilities:
Long-term debt		20,855						19,466						(1,389	)
Accrued pension and severance liabilities		36,322						36,812						490
Deferred income taxes		146,229						235,954						89,725
Other non-current liabilities		37,875						29,795						(8,080	)

Total non-current liabilities		241,281			10.6			322,027			12.2			80,746

Total liabilities		567,911			24.9			649,478			24.6			81,567

Kyocera Corporation shareholders’ equity:
Common stock		115,703						115,703						—
Additional paid-in capital		163,062						162,666						(396	)
Retained earnings		1,368,512						1,415,784						47,272
Accumulated other comprehensive income		50,138						250,963						200,825
Treasury stock, at cost		(51,258	)					(35,033	)					16,225

Total Kyocera Corporation shareholders’ equity		1,646,157			72.1			1,910,083			72.5			263,926

Noncontrolling interests		68,785			3.0			77,143			2.9			8,358

Total equity		1,714,942			75.1			1,987,226			75.4			272,284

Total liabilities and equity	¥	2,282,853			100.0		¥	2,636,704			100.0		¥	353,851


Note: Accumulated other comprehensive income is as follows:

	March 31,												Increase (Decrease)
	2013						2014						Increase (Decrease)
	(Yen in millions)
Net unrealized gains on securities				¥	135,248					¥	293,783		¥	158,535
Net unrealized losses on derivative financial instruments					(68	)					(260	)		(192	)
Pension adjustments					(23,415	)					(21,101	)		2,314
Foreign currency translation adjustments					(61,627	)					(21,459	)		40,168
Total				¥	50,138					¥	250,963		¥	200,825

(2) Consolidated Statements of Income


	Years ended March 31,												Increase (Decrease)
	2013						2014						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions and shares in thousands, except per share amounts)
Net sales	¥	1,280,054			100.0		¥	1,447,369			100.0		¥	167,315			13.1
Cost of sales		952,350			74.4			1,068,465			73.8			116,115			12.2

Gross profit		327,704			25.6			378,904			26.2			51,200			15.6
Selling, general and administrative expenses		250,778			19.6			258,322			17.9			7,544			3.0

Profit from operations		76,926			6.0			120,582			8.3			43,656			56.8
Other income (expenses):
Interest and dividend income		14,666			1.1			18,172			1.3			3,506			23.9
Interest expense		(1,890	)		(0.2	)		(1,945	)		(0.1	)		(55	)		—
Foreign currency transaction gains, net		5,136			0.4			5,108			0.3			(28	)		(0.5	)
Gains on sales of securities, net		4,542			0.4			2,875			0.2			(1,667	)		(36.7	)
Other, net		1,983			0.2			1,476			0.1			(507	)		(25.6	)

Total other income (expenses)		24,437			1.9			25,686			1.8			1,249			5.1

Income before income taxes		101,363			7.9			146,268			10.1			44,905			44.3
Income taxes		34,012			2.6			51,254			3.5			17,242			50.7

Net income		67,351			5.3			95,014			6.6			27,663			41.1
Net income attributable to noncontrolling interests		(878	)		(0.1	)		(6,258	)		(0.5	)		(5,380	)		—

Net income attributable to shareholders of Kyocera Corporation	¥	66,473			5.2		¥	88,756			6.1		¥	22,283			33.5

Earnings per share:
Net income attributable to shareholders of Kyocera Corporation:
Basic	¥	181.18					¥	241.93
Diluted	¥	181.18					¥	241.93
Average number of shares of common stock outstanding:
Basic		366,884						366,872
Diluted		366,884						366,872

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, had been undertaken at the beginning of the year ended March 31, 2013.

Consolidated Statements of Comprehensive Income


	Years ended March 31,						Increase (Decrease)
	2013			2014			Increase (Decrease)
	Amount			Amount			Amount
	(Yen in millions)
Net income	¥	67,351		¥	95,014		¥	27,663

Other comprehensive income (loss)—net of taxes
Net unrealized gains on securities		94,577			158,510			63,933
Net unrealized gains (losses) on derivative financial instruments		8			(167	)		(175	)
Pension adjustments		(11,677	)		2,380			14,057
Foreign currency translation adjustments		55,468			45,845			(9,623	)

Total other comprehensive income (loss)		138,376			206,568			68,192

Comprehensive income		205,727			301,582			95,855
Comprehensive income (loss) attributable to noncontrolling interests		(7,202	)		(11,946	)		(4,744	)

Comprehensive income attributable to shareholders of Kyocera Corporation	¥	198,525		¥	289,636		¥	91,111

(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, 2012 (366,888)	¥	115,703	¥	162,617		¥	1,324,052		¥	(81,639	)	¥	(51,228	)	¥	1,469,505		¥	64,736		¥	1,534,241
Comprehensive income:
Net income							66,473									66,473			878			67,351
Other comprehensive income (loss)										132,052						132,052			6,324			138,376

Total comprehensive income																198,525			7,202			205,727

Cash dividends paid to Kyocera Corporation’s shareholders							(22,013	)								(22,013	)					(22,013	)
Cash dividends paid to noncontrolling interests																			(2,229	)		(2,229	)
Purchase of treasury stock (8)													(30	)		(30	)					(30	)
Reissuance of treasury stock (0)				0									0			0						0
Stock option plan of subsidiaries				80												80			32			112
Other				365						(275	)					90			(956	)		(866	)

Balance at March 31, 2013 (366,880)	¥	115,703	¥	163,062		¥	1,368,512		¥	50,138		¥	(51,258	)	¥	1,646,157		¥	68,785		¥	1,714,942
Comprehensive income:
Net income							88,756									88,756			6,258			95,014
Other comprehensive income (loss)										200,880						200,880			5,688			206,568

Total comprehensive income																289,636			11,946			301,582

Cash dividends paid to Kyocera Corporation’s shareholders							(25,681	)								(25,681	)					(25,681	)
Cash dividends paid to noncontrolling interests																			(3,193	)		(3,193	)
Purchase of treasury stock (14)													(68	)		(68	)					(68	)
Reissuance of treasury stock (1)				1									2			3						3
Retirement of treasury stock				(488	)		(15,803	)					16,291			—						—
Stock option plan of subsidiaries				99												99			38			137
Other				(8	)					(55	)					(63	)		(433	)		(496	)

Balance at March 31, 2014 (366,867)	¥	115,703	¥	162,666		¥	1,415,784		¥	250,963		¥	(35,033	)	¥	1,910,083		¥	77,143		¥	1,987,226

(Note) Numbers of common stock are computed under the assumption that the stock split, which took effect on October 1, 2013, had been undertaken at March 31, 2012.

(4) Consolidated Statements of Cash Flows


	Years ended March 31,
	2013			2014
	(Yen in millions)
Cash flows from operating activities:
Net income	¥	67,351		¥	95,014
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		73,597			76,151
Provision for doubtful accounts and loss on bad debts		238			252
Write-down of inventories		11,507			7,256
Deferred income taxes		(5,643	)		10,354
Gains on sales of securities, net		(4,542	)		(2,875	)
Foreign currency adjustments		(2,003	)		(1,975	)
Change in assets and liabilities:
(Increase) decrease in receivables		(14,876	)		47,306
Increase in inventories		(13,910	)		(25,160	)
Decrease in advance payments		2,872			6,718
Decrease in other current assets		2,035			943
Decrease in notes and accounts payable		(35,557	)		(34,589	)
Increase in accrued income taxes		8,151			490
Increase (decrease) in other current liabilities		9,242			(26,825	)
Increase (decrease) in other non-current liabilities		14,739			(3,628	)
Other, net		(3,712	)		(291	)

Net cash provided by operating activities		109,489			149,141

Cash flows from investing activities:
Payments for purchases of available-for-sale securities		(30,052	)		(38,530	)
Payments for purchases of held-to-maturity securities		(49,583	)		(131,016	)
Proceeds from sales and maturities of available-for-sale securities		37,593			43,432
Proceeds from maturities of held-to-maturity securities		71,167			73,623
Acquisitions of businesses, net of cash acquired		(18,533	)		(15,975	)
Investment in affiliates		(2,150	)		(871	)
Payments for purchases of property, plant and equipment		(58,416	)		(50,890	)
Payments for purchases of intangible assets		(6,553	)		(6,722	)
Acquisition of time deposits and certificate of deposits		(289,694	)		(260,241	)
Withdrawal of time deposits and certificate of deposits		276,436			284,829
Other, net		3,643			1,220

Net cash used in investing activities		(66,142	)		(101,141	)

Cash flows from financing activities:
Decrease in short-term borrowings, net		(1,465	)		(213	)
Proceeds from issuance of long-term debt		9,055			10,671
Payments of long-term debt		(12,733	)		(13,247	)
Dividends paid		(24,336	)		(28,624	)
Other, net		(1,952	)		(1,392	)

Net cash used in financing activities		(31,431	)		(32,805	)

Effect of exchange rate changes on cash and cash equivalents		20,250			14,525

Net increase in cash and cash equivalents		32,166			29,720
Cash and cash equivalents at beginning of year		273,288			305,454

Cash and cash equivalents at end of year	¥	305,454		¥	335,174

(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	12	Kyocera Circuit Solutions, Inc. and others
Number of decrease	12

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, 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 a material 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 ASC 815, “Derivatives and Hedging,” 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.

(6) Segment Information

i) Reporting segment:


	March 31,						Increase (Decrease)
	2013			2014			Increase (Decrease)
	Amount			Amount			Amount			%
	(Yen in millions)
Assets by reporting segments:
Fine Ceramic Parts Group	¥	62,453		¥	69,165		¥	6,712			10.7
Semiconductor Parts Group		118,524			169,330			50,806			42.9
Applied Ceramic Products Group		327,465			317,750			(9,715	)		(3.0	)
Electronic Device Group		448,141			451,856			3,715			0.8
Telecommunications Equipment Group		119,894			105,597			(14,297	)		(11.9	)
Information Equipment Group		263,837			290,378			26,541			10.1
Others		158,617			171,652			13,035			8.2

		1,498,931			1,575,728			76,797			5.1
Corporate and investments in and advances to affiliates and an unconsolidated subsidiary		892,098			1,182,912			290,814			32.6
Adjustments and eliminations		(108,176	)		(121,936	)		(13,760	)		—

Total assets	¥	2,282,853		¥	2,636,704		¥	353,851			15.5



	Years ended March 31,				Increase (Decrease)
	2013		2014		Increase (Decrease)
	Amount		Amount		Amount			%
	(Yen in millions)
Depreciation and amortization:
Fine Ceramic Parts Group	¥	6,403	¥	5,014	¥	(1,389)			(21.7	)
Semiconductor Parts Group		12,850		15,765		2,915			22.7
Applied Ceramic Products Group		15,152		13,558		(1,594	)		(10.5	)
Electronic Device Group		15,155		17,585		2,430			16.0
Telecommunications Equipment Group		7,514		5,091		(2,423	)		(32.2	)
Information Equipment Group		9,723		10,963		1,240			12.8
Others		4,734		5,965		1,231			26.0
Corporate		2,066		2,210		144			7.0

Total	¥	73,597	¥	76,151	¥	2,554			3.5


Capital expenditures:
Fine Ceramic Parts Group	¥	3,348	¥	3,195	¥	(153	)		(4.6	)
Semiconductor Parts Group		14,727		16,566		1,839			12.5
Applied Ceramic Products Group		7,963		8,546		583			7.3
Electronic Device Group		14,071		12,048		(2,023	)		(14.4	)
Telecommunications Equipment Group		3,069		2,997		(72	)		(2.3	)
Information Equipment Group		6,536		5,550		(986	)		(15.1	)
Others		2,837		3,437		600			21.1
Corporate		4,137		4,272		135			3.3

Total	¥	56,688	¥	56,611	¥	(77	)		(0.1	)

Note:

With regard to Reporting segment information of Net sales and Income before income taxes, please refer to the accompanying “1. ANALYSIS OF BUSINESS RESULTS AND FINANCIAL CONDITION (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)
	2013			2014			Increase (Decrease)
	Amount			Amount			Amount			%
	(Yen in millions)
Net sales:
Japan	¥	617,823		¥	671,052		¥	53,229			8.6
Intra-group sales and transfer between geographic areas		421,438			471,547			50,109			11.9

		1,039,261			1,142,599			103,338			9.9

Asia		203,218			231,075			27,857			13.7
Intra-group sales and transfer between geographic areas		261,062			281,750			20,688			7.9

		464,280			512,825			48,545			10.5

Europe		207,448			255,637			48,189			23.2
Intra-group sales and transfer between geographic areas		36,795			48,204			11,409			31.0

		244,243			303,841			59,598			24.4

United States of America		227,324			262,510			35,186			15.5
Intra-group sales and transfer between geographic areas		30,509			40,758			10,249			33.6

		257,833			303,268			45,435			17.6

Others		24,241			27,095			2,854			11.8
Intra-group sales and transfer between geographic areas		12,802			15,853			3,051			23.8

		37,043			42,948			5,905			15.9
Adjustments and eliminations		(762,606	)		(858,112	)		(95,506	)		—

Net sales	¥	1,280,054		¥	1,447,369		¥	167,315			13.1

Income before income taxes:
Japan	¥	63,450		¥	81,858		¥	18,408			29.0
Asia		23,344			23,371			27			0.1
Europe		5,599			11,862			6,263			111.9
United States of America		(6,465	)		17,428			23,893			—
Others		1,096			1,286			190			17.3

		87,024			135,805			48,781			56.1
Corporate gains and Equity in losses of affiliates and an unconsolidated subsidiary		17,248			11,889			(5,359	)		(31.1	)
Adjustments and eliminations		(2,909	)		(1,426	)		1,483			—

Income before income taxes	¥	101,363		¥	146,268		¥	44,905			44.3

iii) Geographic segments (Net sales by region):

With regard to Information of Geographic segments, please refer to the accompanying “1. ANALYSIS OF BUSINESS RESULTS AND FINANCIAL CONDITION (1) Analysis of Business Results Net Sales by Geographic Area” on page 7.

(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, 2014” on page 1 and “3. CONSOLIDATED FINANCIAL STATEMENTS (2) Consolidated Statements of Income” on page 16.

(8) Material Subsequent Event

None.

(9) Cautionary Statement for Premise of a Going Concern

None.

(10) 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, on October 10, 2012, the settlement with the Governments was reached whereby AVX was obligated to 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. 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. In addition, the United States Environmental Protection Agency was obligated to withdraw the Unilateral Administrative Order.

On September 19, 2013, The United States District Court approved the settlement. According to the settlement, AVX paid the initial settlement installment of $133.35 million, plus interest, on October 18, 2013, and on November 26, 2013, the Unilateral Administrative Order was withdrawn by the United States Environmental Protection Agency. In accordance with the Supplemental Consent Decree, AVX has the option to prepay any portion of the remaining settlement balance at any time prior to the due dates of the remaining installments.

On March 26, 2014, AVX prepaid $110.82 million, plus interest on the entire remaining settlement balance, and is obligated to pay the remaining settlement balance of $122.08 million, plus interest, on or before September 21, 2015.

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 year ended March 31, 2013, which were included in selling general and administrative expenses in the consolidated statements of income.

Number of consolidated subsidiaries

Kyocera Document Solutions Inc.

AVX Corporation

Kyocera International, Inc. and others

Number of affiliates accounted for by the equity method