Edgar Filing: KYOCERA CORP

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 October 2016

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: October 31, 2016

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, 2016

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Six Months Ended September 30, 2016

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, 2016


(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, 2016		653,243		(9.6	)		33,785		(45.5	)		48,578		(37.7	)		36,153		(28.8	)
Six months ended September 30, 2015		722,577		1.2			61,949		13.1			78,000		14.5			50,792		16.4

(Note) Comprehensive income:

(3,717) million yen for the six months ended September 30, 2016

34,304 million yen for the six months ended September 30, 2015, (71.6)% of change from previous period


					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, 2016						98.47		98.47
Six months ended September 30, 2015						138.45		138.45
(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, 2016		3,003,680		2,349,341		2,272,857		75.7
March 31, 2016		3,095,049		2,373,762		2,284,264		73.8

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, 2016		—		50.00		—		50.00		100.00
Year ending March 31, 2017		—		50.00		—		50.00		100.00

(Note) Kyocera Corporation has adopted a resolution at the meeting of its Board of Directors held on October 31, 2016 to pay “End of second quarter” dividends (or interim dividends) per share of 50.00 yen for the year ending March 31, 2017. Year-end and annual dividend per share for the year ending March 31, 2017 are the forecasts at the date of the submission of this report.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2017


										(% 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, 2017		1,520,000		2.7		110,000		18.7		130,000		(10.7)		85,000		(22.1)		231.52

(Note) Forecast of earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares outstanding during the six months ended September 30, 2016.

(Notes)

(1) Increase or decrease in significant subsidiaries during the six months ended September 30, 2016: 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: Yes

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

Please refer to the accompanying “2. OTHER INFORMATION” on page 9.

(4) Number of shares (common stock):

(i) Number of shares issued:


377,618,580 shares at September 30, 2016		377,618,580 shares at March 31, 2016

(ii) Number of treasury stock:


9,903,287 shares at September 30, 2016		10,761,503 shares at March 31, 2016

(iii) Average number of shares outstanding:


367,143,045 shares for the six months ended September 30, 2016		366,860,136 shares for the six months ended September 30, 2015

Presentation of Situation of Review Procedure

The consolidated financial information included in this report is out of scope of the review procedure under the Financial Instruments and Exchange Law of Japan. The 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 9.

Other Note:

This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Six Months Ended September 30, 2016. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Accompanying Information

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Six Months Ended September 30, 2016

Economic Situation and Business Environment

During the six months ended September 30, 2016 (“the first half”), the Japanese economy recovered moderately due to a resurgence in personal consumption and an increase in capital investment. Overseas, the U.S. economy expanded mainly on the back of growth in personal consumption, while the European economy remained sluggish and the growth rate in the Chinese economy continued to be slow. As for exchange rates, the yen appreciated substantially compared with the six months ended September 30, 2015 (“the previous first half”).

With regard to the principal markets for Kyocera Corporation and its subsidiaries (“Kyocera”), the automotive market remained firm due primarily to an increase in sales in China and Europe. In contrast, in the information and communications markets, component demand slowed except for certain miniaturized high functional components due to continued growth rate stagnation in smartphone shipment volume, in addition to the impact of production adjustments for mobile phones. In the solar energy market, the selling price of solar modules continued to erode worldwide and demand decreased due to the impact of a reduction in purchase price under the feed-in tariff in Japan.

Consolidated Financial Results

Consolidated net sales for the first half decreased by ¥69,334 million, or 9.6%, compared with the previous first half to ¥653,243 million due mainly to the impact of the yen’s appreciation.

Profit from operations for the first half decreased by ¥28,164 million, or 45.5%, to ¥33,785 million, compared with the previous first half. Income before income taxes decreased by ¥29,422 million, or 37.7%, to ¥48,578 million, and net income attributable to shareholders of Kyocera Corporation decreased by ¥14,639 million, or 28.8%, to ¥36,153 million, in both cases for the first half, compared with the previous first half. It should be noted that profit from the sale of assets in the amount of approximately ¥12 billion was recorded in the previous first half.

Average exchange rates for the first half were ¥105 to the U.S. dollar, marking appreciation of ¥17 (13.9%), and ¥118 to the Euro, marking appreciation of ¥17 (12.6%) from the previous first half. As a result, net sales and income before income taxes after translation into yen for the first half were pushed down by approximately ¥63 billion and approximately ¥14 billion compared with the previous first half, respectively.


	Six months ended September 30,								Increase (Decrease)
	2015				2016				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions, except exchange rates)
Net sales	¥	722,577		100.0	¥	653,243		100.0		¥(69,334	)		(9.6	)
Profit from operations		61,949		8.6		33,785		5.2		(28,164	)		(45.5	)
Income before income taxes		78,000		10.8		48,578		7.4		(29,422	)		(37.7	)
Net income attributable to shareholders of Kyocera Corporation		50,792		7.0		36,153		5.5		(14,639	)		(28.8	)
Average US$ exchange rate		122		—		105		—		(17	)		(13.9	)
Average Euro exchange rate		135		—		118		—		(17	)		(12.6	)

The negative impacts due to changes in foreign currency exchange rates for the first half compared with the previous first half


Sales:		approximately ¥63 billion

Income before income taxes:		approximately ¥14 billion

Note:

It should be noted that profit from the sale of assets in the amount of approximately ¥12 billion was recorded in the previous first half.

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Sales in this reporting segment were on par with the previous first half due to a decline in sales of components for smartphones which was more than enough to offset an increase in sales of automotive components. Operating profit decreased due mainly to the impact of a change in product mix.

2) Semiconductor Parts Group

Sales in this reporting segment decreased compared with the previous first half due to a decline in sales of organic substrates for communications infrastructure which was more than enough to offset firm demand for ceramic packages for optical communications. Operating profit decreased due to the lack of profit from the sale of assets in the amount of approximately ¥12 billion which was recorded in the previous first half, as well as the impact of lower sales.

3) Applied Ceramic Products Group

Sales and operating profit in this reporting segment decreased compared with the previous first half due primarily to a decline in sales in the solar energy business owing to sales price erosion as well as a decline in sales in the cutting tool business reflecting the effect of the yen’s appreciation.

4) Electronic Device Group

Sales and operating profit in this reporting segment decreased compared with the previous first half due to sales price erosion and the impact of the yen’s appreciation, which was more than enough to offset growth in demand for small-sized capacitors and crystal components.

5) Telecommunications Equipment Group

Sales volume decreased compared with the previous first half due to a reduction in production ratio for low-end mobile phones for overseas, which was more than enough to offset growth in demand for distinctive mobile phones with high durability and other unique features. As a result, sales in this reporting segment decreased and operating loss was recorded.

6) Information Equipment Group

Sales in this reporting segment decreased due to the impact of the yen’s appreciation, while sales volume of equipment remaining unchanged from the previous first half. Operating profit increased compared with the previous first half, however, as a result of efforts to reduce costs, including productivity improvements.

Net Sales by Reporting Segment


	Six months ended September 30,												Increase (Decrease)
	2015						2016						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	46,945			6.5		¥	46,759			7.1		¥	(186	)		(0.4	)
Semiconductor Parts Group		121,335			16.8			117,316			18.0			(4,019	)		(3.3	)
Applied Ceramic Products Group		113,636			15.7			97,906			15.0			(15,730	)		(13.8	)
Electronic Device Group		146,211			20.2			135,001			20.7			(11,210	)		(7.7	)

Total Components Business		428,127			59.2			396,982			60.8			(31,145	)		(7.3	)
Telecommunications Equipment Group		78,697			10.9			64,832			9.9			(13,865	)		(17.6	)
Information Equipment Group		162,511			22.5			147,435			22.6			(15,076	)		(9.3	)

Total Equipment Business		241,208			33.4			212,267			32.5			(28,941	)		(12.0	)
Others		74,135			10.3			64,108			9.8			(10,027	)		(13.5	)
Adjustments and eliminations		(20,893	)		(2.9	)		(20,114	)		(3.1	)		779			—

Net sales	¥	722,577			100.0		¥	653,243			100.0		¥	(69,334	)		(9.6	)


Operating Profit (Loss) by Reporting Segment
	Six months ended September 30,												Increase (Decrease)
	2015						2016						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	8,267			17.6		¥	6,132			13.1		¥	(2,135	)		(25.8	)
Semiconductor Parts Group		29,602			24.4			9,966			8.5			(19,636	)		(66.3	)
Applied Ceramic Products Group		8,023			7.1			5,658			5.8			(2,365	)		(29.5	)
Electronic Device Group		18,411			12.6			10,499			7.8			(7,912	)		(43.0	)

Total Components Business		64,303			15.0			32,255			8.1			(32,048	)		(49.8	)
Telecommunications Equipment Group		(5,621	)		—			(7,160	)		—			(1,539	)		—
Information Equipment Group		12,039			7.4			12,867			8.7			828			6.9

Total Equipment Business		6,418			2.7			5,707			2.7			(711	)		(11.1	)
Others		(1,714	)		—			(2,908	)		—			(1,194	)		—

Operating profit		69,007			9.6			35,054			5.4			(33,953	)		(49.2	)
Corporate gains and equity in earnings (losses) of affiliates and an unconsolidated subsidiary		8,902			—			14,284			—			5,382			60.5
Adjustments and eliminations		91			—			(760	)		—			(851	)		—

Income before income taxes	¥	78,000			10.8		¥	48,578			7.4		¥	(29,422	)		(37.7	)

*	% to net sales of each corresponding segment

Note:

Kyocera Chemical Group, formerly included in “Others” until the year ended March 31, 2016, has been reclassified and included in the “Semiconductor Parts Group” commencing from the year ending March 31, 2017. Due to this change, results for the previous first half have been reclassified to conform to the current presentation. As a result of this reclassification, a gain of approximately ¥12 billion from the sale of assets was included in the operating profit of the “Semiconductor Parts Group” for the previous first half.

Net Sales by Geographic Area

1) Japan

Sales in Japan decreased compared with the previous first half due mainly to a decline in sales in the Telecommunications Equipment Group.

2) Asia

Sales in Asia decreased compared with the previous first half due primarily to a decline in sales in the Semiconductor Parts Group which were affected by the effect of the yen’s appreciation.

3) United States of America

Sales in the United States of America decreased compared with the previous first half due mainly to the effect of the yen’s appreciation as well as to a decline in sales in the solar energy business.

4) Europe

Sales in Europe decreased compared with the previous first half due mainly to a decline in sales in the Information Equipment Group and the Electronic Device Group which were affected by the effect of the yen’s appreciation.

5) Others

Sales in Others decreased compared with the previous first half due primarily to a decline in sales in the Semiconductor Parts Group and the Information Equipment Group.


	Six months ended September 30,								Increase (Decrease)
	2015				2016				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions)
Japan	¥	280,703		38.9	¥	268,894		41.1		¥(11,809	)		(4.2	)
Asia		160,411		22.2		141,538		21.7		(18,873	)		(11.8	)
United States of America		127,482		17.6		109,897		16.8		(17,585	)		(13.8	)
Europe		122,861		17.0		106,338		16.3		(16,523	)		(13.4	)
Others		31,120		4.3		26,576		4.1		(4,544	)		(14.6	)

Net sales	¥	722,577		100.0	¥	653,243		100.0		¥(69,334	)		(9.6	)

(2) Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at September 30, 2016 decreased by ¥56,250 million to ¥317,770 million from ¥374,020 million at March 31, 2016.

1) Cash flows from operating activities

Net cash provided by operating activities for the first half decreased by ¥14,274 million to ¥73,034 million from ¥87,308 million for the previous first half. This was due mainly to a decrease in net income.

2) Cash flows from investing activities

Net cash used in investing activities for the first half increased by ¥5,478 million to ¥82,684 million from ¥77,206 million for the previous first half. This was due mainly to an increase in acquisition of time deposits, which exceeded an increase in withdrawal of time deposits.

3) Cash flows from financing activities

Net cash used in financing activities for the first half decreased by ¥662 million to ¥27,853 million from ¥28,515 million for the previous first half. This was due mainly to a decrease in year-end dividends paid.


	Six months ended September 30,
	2015			2016
	(Yen in millions)
Cash flows from operating activities	¥	87,308		¥	73,034
Cash flows from investing activities		(77,206	)		(82,684	)
Cash flows from financing activities		(28,515	)		(27,853	)
Effect of exchange rate changes on cash and cash equivalents		(1,841	)		(18,747	)
Net decrease in cash and cash equivalents		(20,254	)		(56,250	)
Cash and cash equivalents at beginning of period		351,363			374,020
Cash and cash equivalents at end of period	¥	331,109		¥	317,770

(3) Interim dividend for the year ending March 31, 2017

Kyocera Corporation has adopted a basic guideline to the effect that dividend amounts will in principle be within the amount of 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 around 40%. Kyocera Corporation has resolved that its interim dividend for the year ending March 31, 2017 will be 50 yen per share, in accordance with such basic policy.

Kyocera Corporation forecasts payment of its year-end dividend for the year ending March 31, 2017 in the amount of 50 yen per share, and therefore has not changed its annual dividend forecast of 100 yen per share as previously announced.

(4) Consolidated Financial Forecasts for the Year Ending March 31, 2017

For the three months ending December 31, 2016 and thereafter, although there are some uncertainties regarding the demand trend for smartphone components, sales of the solar energy business, principally for domestic industrial use, are expected to increase and, in addition, in the equipment business, sales expansion is expected as a result of launches of new products and aggressive sales activity. Based on those expectations, Kyocera maintains its consolidated financial forecasts with respect to the sales and profit as announced in April 27, 2016.

In addition, Kyocera has revised its forecast of average exchange rates for the second half of the year ending March 31, 2017 from the July projection of ¥105 to ¥102 against the U.S. dollar, and from ¥115 to ¥112 against the Euro. As a result, full-year forecasts of average exchange rates for the year ending March 31, 2017 have been revised to ¥104 to the U.S. dollar and ¥115 to the Euro.


	Results for the year ended March 31, 2016				Forecasts for the year ending March 31, 2017				Increase (Decrease) to Results
	Amount		%		Amount		%		Amount			%
	(Yen in millions)
Net sales	¥	1,479,627		100.0	¥	1,520,000		100.0	¥	40,373			2.7
Profit from operations		92,656		6.3		110,000		7.2		17,344			18.7
Income before income taxes		145,583		9.8		130,000		8.6		(15,583	)		(10.7	)
Net income attributable to shareholders of Kyocera Corporation		109,047		7.4		85,000		5.6		(24,047	)		(22.1	)

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 conditions in the Japanese or global economy;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(18)	Credit risk on trade receivables;

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

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

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

(22)	Changes in accounting principles.

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

2. OTHER INFORMATION

Changes in accounting policies

Recently Adopted Accounting Standards

The accounting standards which Kyocera adopted on or after April 1, 2016 did not have material impacts on Kyocera’s consolidated results of operations, financial condition and cash flows.

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)


	March 31, 2016					September 30, 2016					Increase (Decrease)
	Amount			%		Amount			%		Increase (Decrease)
	(Yen in millions)
Current assets:
Cash and cash equivalents	¥	374,020				¥	317,770				¥	(56,250	)
Short-term investments in debt securities		101,566					88,478					(13,088	)
Other short-term investments		213,613					229,207					15,594
Trade notes receivables		22,832					19,664					(3,168	)
Trade accounts receivables		266,462					239,644					(26,818	)
Less allowances for doubtful accounts and sales returns		(5,278	)				(5,374	)				(96	)
Inventories		327,875					316,334					(11,541	)
Other current assets		133,671					118,819					(14,852	)

Total current assets		1,434,761			46.4		1,324,542			44.1		(110,219	)

Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities		1,131,403					1,167,447					36,044
Other long-term investments		20,130					21,703					1,573

Total investments and advances		1,151,533			37.2		1,189,150			39.6		37,617

Property, plant and equipment:
Land		59,914					59,231					(683	)
Buildings		344,087					337,373					(6,714	)
Machinery and equipment		841,895					828,328					(13,567	)
Construction in progress		18,314					18,640					326
Less accumulated depreciation		(999,723	)				(979,115	)				20,608

Total property, plant and equipment		264,487			8.5		264,457			8.8		(30	)

Goodwill		102,599			3.3		98,999			3.3		(3,600	)
Intangible assets		59,106			1.9		53,721			1.8		(5,385	)
Other assets		82,563			2.7		72,811			2.4		(9,752	)

Total non-current assets		1,660,288			53.6		1,679,138			55.9		18,850

Total assets	¥	3,095,049			100.0	¥	3,003,680			100.0	¥	(91,369	)


	March 31, 2016						September 30, 2016						Increase (Decrease)
	Amount			%			Amount			%			Increase (Decrease)
	(Yen in millions)
Current liabilities:
Short-term borrowings	¥	5,119					¥	632					¥	(4,487	)
Current portion of long-term debt		9,516						8,020						(1,496	)
Trade notes and accounts payable		115,644						111,471						(4,173	)
Other notes and accounts payable		82,758						48,987						(33,771	)
Accrued payroll and bonus		59,959						59,907						(52	)
Accrued income taxes		22,847						6,251						(16,596	)
Other accrued liabilities		43,525						42,265						(1,260	)
Other current liabilities		28,464						26,792						(1,672	)

Total current liabilities		367,832			11.9			304,325			10.1			(63,507	)

Non-current liabilities:
Long-term debt		18,115						15,001						(3,114	)
Accrued pension and severance liabilities		46,101						42,391						(3,710	)
Deferred income taxes		271,220						274,349						3,129
Other non-current liabilities		18,019						18,273						254

Total non-current liabilities		353,455			11.4			350,014			11.7			(3,441	)

Total liabilities		721,287			23.3			654,339			21.8			(66,948	)

Kyocera Corporation shareholders’ equity:
Common stock		115,703						115,703						—
Additional paid-in capital		162,844						165,147						2,303
Retained earnings		1,571,002						1,588,812						17,810
Accumulated other comprehensive income		469,803						435,487						(34,316	)
Common stock in treasury, at cost		(35,088	)					(32,292	)					2,796

Total Kyocera Corporation shareholders’ equity		2,284,264			73.8			2,272,857			75.7			(11,407	)

Noncontrolling interests		89,498			2.9			76,484			2.5			(13,014	)

Total equity		2,373,762			76.7			2,349,341			78.2			(24,421	)

Total liabilities and equity	¥	3,095,049			100.0		¥	3,003,680			100.0		¥	(91,369	)

Note: Accumulated other comprehensive income is as follows:
	March 31, 2016						September 30, 2016						Increase (Decrease)
	(Yen in millions)
Net unrealized gains on securities		¥517,190						¥536,887					¥	19,697
Net unrealized losses on derivative financial instruments					(488	)					(474	)		14
Pension adjustments					(42,648	)					(41,380	)		1,268
Foreign currency translation adjustments					(4,251	)					(59,546	)		(55,295	)

Total		¥469,803						¥435,487					¥	(34,316	)

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

Consolidated Statements of Income


	Six months ended September 30,												Increase (Decrease)
	2015						2016						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions and shares in thousands, except per share amounts)
Net sales	¥	722,577			100.0		¥	653,243			100.0		¥	(69,334	)		(9.6	)
Cost of sales		531,517			73.6			488,049			74.7			(43,468	)		(8.2	)

Gross profit		191,060			26.4			165,194			25.3			(25,866	)		(13.5	)
Selling, general and administrative expenses		129,111			17.8			131,409			20.1			2,298			1.8

Profit from operations		61,949			8.6			33,785			5.2			(28,164	)		(45.5	)

Other income (expenses) :
Interest and dividend income		13,765			1.9			15,903			2.4			2,138			15.5
Interest expense		(769	)		(0.1	)		(1,385	)		(0.2	)		(616	)		—
Foreign currency transaction gains, net		2,034			0.3			(238	)		(0.0	)		(2,272	)		—
Gains on sales of securities		—			—			103			0.0			103			—
Other, net		1,021			0.1			410			0.0			(611	)		(59.8	)

Total other income (expenses)		16,051			2.2			14,793			2.2			(1,258	)		(7.8	)

Income before income taxes		78,000			10.8			48,578			7.4			(29,422	)		(37.7	)
Income taxes		24,296			3.4			10,302			1.5			(13,994	)		(57.6	)

Net income		53,704			7.4			38,276			5.9			(15,428	)		(28.7	)
Net income attributable to noncontrolling interests		(2,912	)		(0.4	)		(2,123	)		(0.4	)		789			—

Net income attributable to shareholders of Kyocera Corporation	¥	50,792			7.0		¥	36,153			5.5		¥	(14,639	)		(28.8	)

Per share information:
Net income attributable to shareholders of Kyocera Corporation:
Basic	¥	138.45					¥	98.47
Diluted		138.45						98.47
Average number of shares of common stock outstanding:
Basic		366,860						367,143
Diluted		366,860						367,143

Note:

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

Consolidated Statements of Comprehensive Income


	Six months ended September 30,						Increase (Decrease)
	2015			2016			Increase (Decrease)
	Amount			Amount			Amount
	(Yen in millions)
Net income	¥	53,704		¥	38,276		¥	(15,428	)

Other comprehensive income (loss)—net of taxes
Net unrealized gains (losses) on securities		(14,083	)		19,660			33,743
Net unrealized gains (losses) on derivative financial instruments		(31	)		28			59
Pension adjustments		(814	)		1,395			2,209
Foreign currency translation adjustments		(4,472	)		(63,076	)		(58,604	)

Total other comprehensive income (loss)		(19,400	)		(41,993	)		(22,593	)

Comprehensive income (loss)		34,304			(3,717	)		(38,021	)
Comprehensive income (loss) attributable to noncontrolling interests		(2,883	)		5,644			8,527

Comprehensive income attributable to shareholders of Kyocera Corporation	¥	31,421		¥	1,927		¥	(29,494	)

(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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