Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of October 2017
Commission File Number: 1-07952
KYOCERA CORPORATION
(Translation of registrant’s name into English)
6, Takeda Tobadono-cho, Fushimi-ku,
Kyoto 612-8501, Japan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7): ☐
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| KYOCERA CORPORATION (Registrant) |
| /s/ SHOICHI AOKI |
| (Signature) |
| Shoichi Aoki |
| Director, |
| Managing Executive Officer and |
| General Manager of |
| Corporate Financial and Accounting Group |
Date: October 30, 2017
Table of Contents
Information furnished on this form:
Table of Contents
Exhibit 1. Consolidated Financial Results of Kyocera Corporation and its Subsidiaries
for the Six Months Ended September 30, 2017
The consolidated financial information is prepared in accordance with generally accepted accounting principles in the United States of America.
1. Consolidated Financial Results for the Six Months Ended September 30, 2017
| (1) Consolidated results of operations |
(% of change from previous period) | |||||||||||||||||||||||||||||||
| Net sales | Profit from operations | Income before income taxes | Net income attributable to Kyocera Corporation’s shareholders |
|||||||||||||||||||||||||||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||||||||
| Six months ended September 30, 2017 |
738,345 | 13.0 | 69,505 | 105.7 | 87,840 | 80.8 | 61,387 | 69.8 | ||||||||||||||||||||||||
| Six months ended September 30, 2016 |
653,243 | (9.6 | ) | 33,785 | (45.5 | ) | 48,578 | (37.7 | ) | 36,153 | (28.8 | ) | ||||||||||||||||||||
(Note) Comprehensive income:
99,760 million yen for the six months ended September 30, 2017
(3,717) million yen for the six months ended September 30, 2016
| Net income attributable to Kyocera Corporation’s shareholders per share - Basic |
Net income attributable to Kyocera Corporation’s shareholders per share - Diluted |
|||||||
| Yen | Yen | |||||||
| Six months ended September 30, 2017 |
166.94 | 166.94 | ||||||
| Six months ended September 30, 2016 |
98.47 | 98.47 | ||||||
(2) Consolidated financial condition
| Total assets | Total equity | Kyocera Corporation’s shareholders’ equity |
Kyocera
Corporation’s shareholders’ equity to total assets |
|||||||||||||
| Million yen | Million yen | Million yen | % | |||||||||||||
| September 30, 2017 |
3,202,996 | 2,495,139 | 2,406,432 | 75.1 | ||||||||||||
| March 31, 2017 |
3,110,470 | 2,418,909 | 2,334,219 | 75.1 | ||||||||||||
2. Dividends
| Dividends per share | ||||||||||||||||||||
| End of first quarter |
End of second quarter |
End of third quarter |
Year-end | Annual | ||||||||||||||||
| Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
| Year ended March 31, 2017 |
— | 50 | — | 60 | 110 | |||||||||||||||
| Year ending March 31, 2018 |
— | 60 | — | 60 | 120 | |||||||||||||||
Note:
Please refer to “(3) Interim Dividend for the year ending March 31, 2018” for the detail of dividends information for the year ending March 31, 2018 on page 7.
1
Table of Contents
3. Consolidated Financial Forecasts for the Year Ending March 31, 2018
| (% of change from previous year) | ||||||||||||||||||||||||||||||||||||
| Net sales | Profit from operations |
Income before income taxes |
Net
income attributable to Kyocera Corporation’s shareholders |
Net
income attributable to Kyocera Corporation’s shareholders per share |
||||||||||||||||||||||||||||||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||||||||||||||||||||||||||
| Year ending March 31, 2018 |
1,560,000 | 9.6 | 135,000 | 29.1 | 170,000 | 23.3 | 119,000 | 14.6 | 323.62 | |||||||||||||||||||||||||||
Note:
Forecast of earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the diluted average number of shares outstanding during the six months ended September 30, 2017.
Notes:
(1) Increase or decrease in significant subsidiaries during the six months ended September 30, 2017: Yes
New companies : Not applicable
Removal companies : 1 (Kyocera Crystal Device Corporation)
Please refer to “(3) Notes to the consolidated financial statements” on page 13.
(2) Adoption of concise quarterly accounting method or procedure: Not applicable
(3) Changes in accounting policies:
(i) Changes due to adoption of new accounting standards: Yes
(ii) Changes due to other than adoption of new accounting standards: Not applicable
Please refer to “(3) Notes to the consolidated financial statements” on page 13.
(4) Number of shares (common stock):
(i) Number of shares issued:
| 377,618,580 shares at September 30, 2017 |
377,618,580 shares at March 31, 2017 |
(ii) Number of treasury stock:
| 9,909,072 shares at September 30, 2017 |
9,906,197 shares at March 31, 2017 |
(iii) Average number of shares outstanding:
| 367,710,762 shares for the six months ended September 30, 2017 | 367,143,045 shares for the six months ended September 30, 2016 |
Presentation of Situation of Review Procedure
The consolidated financial information included in this Form 6-K is out of scope of audit procedure.
2
Table of Contents
Instruction for Forecasts and Other Notes
Cautionary Statement for Forecasts:
Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following:
| (1) | General conditions in the Japanese or global economy; |
| (2) | Unexpected changes in economic, political and legal conditions in countries where we operate; |
| (3) | Various export risks which may affect the significant percentage of our revenues derived from overseas sales; |
| (4) | The effect of foreign exchange fluctuations on our results of operations; |
| (5) | Intense competitive pressures to which our products are subject; |
| (6) | Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera’s production activities; |
| (7) | Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes; |
| (8) | Shortages and rising costs of electricity affecting our production and sales activities; |
| (9) | The possibility that future initiatives and in-process research and development may not produce the desired results; |
| (10) | Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities; |
| (11) | Inability to secure skilled employees, particularly engineering and technical personnel; |
| (12) | Insufficient protection of our trade secrets and intellectual property rights including patents; |
| (13) | Expenses associated with licenses we require to continue to manufacture and sell products; |
| (14) | Environmental liability and compliance obligations by tightening of environmental laws and regulations; |
| (15) | Unintentional conflict with laws and regulations or newly enacted laws and regulations; |
| (16) | Our market or supply chains being affected by terrorism, plague, wars or similar events; |
| (17) | Earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers; |
| (18) | Credit risk on trade receivables; |
| (19) | Fluctuations in the value of, and impairment losses on, securities and other assets held by us; |
| (20) | Impairment losses on long-lived assets, goodwill and intangible assets; |
| (21) | Unrealized deferred tax assets and additional liabilities for unrecognized tax benefits; and |
| (22) | Changes in accounting principles. |
Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.
Other Note:
This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Six Months Ended September 30, 2017. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
3
Table of Contents
1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS
(1) Business Results for the Six Months Ended September 30, 2017
Consolidated Financial Results
During the six months ended September 30, 2017 (“the first half”), sales in the Industrial & Automotive Components Group and the Electronic Devices Group increased significantly reflecting strong demand for components used in information and communications markets, automotive-related markets and industrial machinery markets. Sales also expanded in the Document Solutions Group due to launching of new products and aggressive sales promotion activities. As a result, consolidated net sales for the first half increased by ¥85,102 million, or 13.0%, to ¥738,345 million, compared with the six months ended September 30, 2016 (“the previous first half”). This represented a record high in terms of first half results.
Profit in both of the Components Business and the Equipment & Systems Business increased compared with the previous first half due to increased sales and cost reductions, as well as enhanced productivity achieved through implementation of structural reforms in the previous fiscal year ended March 31, 2017. Profit from operations increased by ¥35,720 million, or 105.7%, to ¥69,505 million, income before income taxes increased by ¥39,262 million, or 80.8%, to ¥87,840 million, and net income attributable to Kyocera Corporation’s shareholders increased by ¥25,234 million, or 69.8%, to ¥61,387 million, compared with the previous first half.
Average exchange rates for the first half were ¥111 to the U.S. dollar, marking depreciation by ¥6 (5.7%), and ¥126 to the Euro, marking depreciation by ¥8 (6.8%), compared with the previous first half. As a result, net sales and income before income taxes after translation into yen for the first half were pushed up by approximately ¥24 billion and ¥7 billion, respectively, compared with the previous first half.
| Six months ended September 30, | Increase (Decrease) |
|||||||||||||||||||||||
| 2016 | 2017 | |||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| (Yen in millions, except exchange rates) | ||||||||||||||||||||||||
| Net sales |
¥ | 653,243 | 100.0 | ¥ | 738,345 | 100.0 | ¥ | 85,102 | 13.0 | |||||||||||||||
| Profit from operations |
33,785 | 5.2 | 69,505 | 9.4 | 35,720 | 105.7 | ||||||||||||||||||
| Income before income taxes |
48,578 | 7.4 | 87,840 | 11.9 | 39,262 | 80.8 | ||||||||||||||||||
| Net income attributable to Kyocera Corporation’s shareholders |
36,153 | 5.5 | 61,387 | 8.3 | 25,234 | 69.8 | ||||||||||||||||||
| Average US$ exchange rate |
105 | — | 111 | — | — | — | ||||||||||||||||||
| Average Euro exchange rate |
118 | — | 126 | — | — | — | ||||||||||||||||||
4
Table of Contents
Consolidated Results by Reporting Segment
1) Industrial & Automotive Components Group
Sales in this reporting segment increased compared with the previous first half due to an increase in sales of industrial tools reflecting growing demand and sales contributions resulting from merger and acquisition activity, coupled with an increase in sales of automotive displays and fine ceramic parts for semiconductor processing equipment. Operating profit increased significantly due to the increase in sales and cost reductions. The operating profit ratio improved to the double-digit level.
2) Semiconductor Components Group
Sales in this reporting segment increased compared with the previous first half due primarily to an increase in sales of ceramic packages for smartphones and organic packages for telecommunications infrastructure. Operating profit increased substantially due to the increase in sales and cost reductions. The operating profit ratio improved to the double-digit level.
3) Electronic Devices Group
Sales of capacitors, crystal components and connectors increased due to expansion of production capacity on the back of solid demand for smartphone parts. Demand for printing devices for industrial equipment was also strong. As a result, sales in this reporting segment increased compared with the previous first half. Operating profit increased due to the increase in sales and cost reductions, and the operating profit ratio also improved.
4) Communications Group
Sales in this reporting segment increased compared with the previous first half due to an increase in sales in the information and communications services business, which provides ICT solutions, etc., and sales of mobile phones for the Japanese market in the telecommunications equipment business. A return to operating profit resulted from the increase in sales and efforts to reduce fixed costs.
5) Document Solutions Group
Sales in this reporting segment increased compared with the previous first half due to an increase in sales volume as a result of launching new products and aggressive sales promotion activities coupled with the contribution of sales resulting from merger and acquisition activity. Operating profit increased significantly due to the increase in sales, cost reductions and the impact of foreign exchange rate fluctuations. The operating profit ratio improved to the double-digit level.
6) Life & Environment Group
Sales in this reporting segment decreased compared with the previous first half due to downsizing of the solar energy business in the United States. Operating loss was recorded due mainly to the sales decline and an increase in R&D expenses despite a decline in operating loss through efforts to reduce costs.
5
Table of Contents
Net Sales by Reporting Segment
| Six months ended September 30, | Increase (Decrease) |
|||||||||||||||||||||||
| 2016 | 2017 | |||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||||||
| Industrial & Automotive Components Group |
¥ | 107,749 | 16.5 | ¥ | 131,010 | 17.7 | ¥ | 23,261 | 21.6 | |||||||||||||||
| Semiconductor Components Group |
117,316 | 17.9 | 126,881 | 17.2 | 9,565 | 8.2 | ||||||||||||||||||
| Electronic Devices Group |
114,165 | 17.5 | 137,253 | 18.6 | 23,088 | 20.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Components Business |
339,230 | 51.9 | 395,144 | 53.5 | 55,914 | 16.5 | ||||||||||||||||||
| Communications Group |
114,059 | 17.4 | 123,937 | 16.8 | 9,878 | 8.7 | ||||||||||||||||||
| Document Solutions Group |
147,435 | 22.6 | 172,020 | 23.3 | 24,585 | 16.7 | ||||||||||||||||||
| Life & Environment Group |
61,830 | 9.5 | 52,813 | 7.1 | (9,017 | ) | (14.6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Equipment & Systems Business |
323,324 | 49.5 | 348,770 | 47.2 | 25,446 | 7.9 | ||||||||||||||||||
| Others |
10,735 | 1.7 | 9,319 | 1.3 | (1,416 | ) | (13.2 | ) | ||||||||||||||||
| Adjustments and eliminations |
(20,046 | ) | (3.1 | ) | (14,888 | ) | (2.0 | ) | 5,158 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net sales |
¥ | 653,243 | 100.0 | ¥ | 738,345 | 100.0 | ¥ | 85,102 | 13.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating Profit (Loss) by Reporting Segment | ||||||||||||||||||||||||
| Six months ended September 30, | Increase (Decrease) |
|||||||||||||||||||||||
| 2016 | 2017 | |||||||||||||||||||||||
| Amount | %* | Amount | %* | Amount | % | |||||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||||||
| Industrial & Automotive Components Group |
¥ | 6,395 | 5.9 | ¥ | 14,752 | 11.3 | ¥ | 8,357 | 130.7 | |||||||||||||||
| Semiconductor Components Group |
9,764 | 8.3 | 17,937 | 14.1 | 8,173 | 83.7 | ||||||||||||||||||
| Electronic Devices Group |
13,029 | 11.4 | 21,880 | 15.9 | 8,851 | 67.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Components Business |
29,188 | 8.6 | 54,569 | 13.8 | 25,381 | 87.0 | ||||||||||||||||||
| Communications Group |
(4,830 | ) | — | 2,230 | 1.8 | 7,060 | — | |||||||||||||||||
| Document Solutions Group |
12,867 | 8.7 | 20,090 | 11.7 | 7,223 | 56.1 | ||||||||||||||||||
| Life & Environment Group |
(740 | ) | — | (373 | ) | — | 367 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Equipment & Systems Business |
7,297 | 2.3 | 21,947 | 6.3 | 14,650 | 200.8 | ||||||||||||||||||
| Others |
(1,414 | ) | — | 430 | 4.6 | 1,844 | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating profit |
35,071 | 5.4 | 76,946 | 10.4 | 41,875 | 119.4 | ||||||||||||||||||
| Corporate gains and equity in earnings (losses) of affiliates and an unconsolidated subsidiary |
14,284 | — | 11,582 | — | (2,702 | ) | (18.9 | ) | ||||||||||||||||
| Adjustments and eliminations |
(777 | ) | — | (688 | ) | — | 89 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income before income taxes |
¥ | 48,578 | 7.4 | ¥ | 87,840 | 11.9 | ¥ | 39,262 | 80.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| * | % to net sales of each corresponding segment |
Note: Kyocera has changed the classification of its reporting segments from the year ending March 31, 2018. Business results for the six months ended September 30, 2016 have been reclassified in line with the change to reporting segment classifications.
6
Table of Contents
(2) Financial Condition
Consolidated Cash Flows
Cash and cash equivalents at September 30, 2017 increased by ¥16,464 million to ¥392,659 million from ¥376,195 million at March 31, 2017.
1) Cash flows from operating activities
Net cash provided by operating activities for the first half increased by ¥18,059 million to ¥91,093 million from ¥73,034 million for the previous first half. This was due mainly to an increase in net income.
2) Cash flows from investing activities
Net cash used in investing activities for the first half decreased by ¥31,387 million to ¥51,297 million from ¥82,684 million for the previous first half. This was due mainly to a decrease in payments for purchase of securities, which was partly offset by an increase in payments for acquisitions of businesses.
3) Cash flows from financing activities
Net cash used in financing activities for the first half increased by ¥697 million to ¥28,550 million from ¥27,853 million for the previous first half. This was due to an increase in year-end dividends paid which exceeded decreases in payments of short-term and long-term debts.
| Six months ended September 30, | Increase (Decrease) |
|||||||||||
| 2016 | 2017 | |||||||||||
| (Yen in millions) | ||||||||||||
| Cash flows from operating activities |
¥ | 73,034 | ¥ | 91,093 | ¥ | 18,059 | ||||||
| Cash flows from investing activities |
(82,684 | ) | (51,297 | ) | 31,387 | |||||||
| Cash flows from financing activities |
(27,853 | ) | (28,550 | ) | (697 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents |
(18,747 | ) | 5,218 | 23,965 | ||||||||
| Net increase (decrease) in cash and cash equivalents |
(56,250 | ) | 16,464 | 72,714 | ||||||||
| Cash and cash equivalents at beginning of period |
374,020 | 376,195 | 2,175 | |||||||||
| Cash and cash equivalents at end of period |
¥ | 317,770 | ¥ | 392,659 | ¥ | 74,889 | ||||||
(3) Interim dividend for the year ending March 31, 2018
Kyocera Corporation has adopted the principal guideline that dividend amounts be within a range based on net income attributable to Kyocera Corporation’s shareholders on a consolidated basis, and has set its dividend policy to maintain a payout ratio of around 40% of consolidated net income attributable to Kyocera Corporation’s shareholders. In addition, Kyocera Corporation determines dividend amounts based on an overall assessment, taking into account various factors including the amount of capital expenditures necessary for the medium to long-term corporate growth.
Kyocera Corporation has adopted resolutions in respect of distribution of interim dividend for the year ending March 31, 2018 and revision of year-end dividends forecast for the year ending March 31, 2018 based on the principal guideline. Please refer to the release of “Exhibit 2. Notice relating to Revision of Consolidated Financial Forecasts for the Year Ending March 31, 2018 (“fiscal 2018”), Distribution of Interim Dividend for fiscal 2018 and Revision of Year-end Dividend Forecast for fiscal 2018” in this Form 6-K.
7
Table of Contents
(4) Consolidated Financial Forecasts for the Year Ending March 31, 2018
Performance in the first half exceeded expectations, especially in the Components Business, reflecting a favorable business environment. Increased demand is forecast to continue for the third quarter (October 1 to December 31, 2017) and fourth quarter (January 1 to March 31, 2018), especially for parts used in industrial machinery and automotive-related markets. In addition, depreciation of the yen is now forecast to exceed the original forecast, also contributing to anticipated sales and profit exceeding those forecasts in May 2017. In line with this, forecasts for each reporting segment have been revised as shown on the following page.
Kyocera has revised its forecast of average exchange rates for the third quarter and fourth quarter from the forecast in May, from ¥108 to ¥110 against the U.S. dollar and from ¥115 to ¥130 against the Euro. As a result, full-year forecasts of average exchange rates for the fiscal year are ¥111 to the U.S. dollar and ¥128 to the Euro.
Kyocera will strive to further expand sales by continuing to actively secure orders and enhance production capacity, and to reduce costs and improve productivity with the aim of attaining its full-year financial forecasts.
Please refer to “Cautionary Statement for Forecasts” in “Instruction for Forecasts and Other Notes” on page 3.
| Results for the year ended March 31, 2017 |
Forecasts for the year
ending March 31, 2018 announced on |
Increase (Decrease) to Results |
||||||||||||||||||||||||||
| May 1,
2017 (Previous) |
October 30,
2017 (Revised) |
|||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | % | ||||||||||||||||||||||
| (Yen in millions, except exchange rates) | ||||||||||||||||||||||||||||
| Net sales |
¥ | 1,422,754 | 100.0 | ¥ | 1,500,000 | 100.0 | ¥ | 1,560,000 | 100.0 | 9.6 | ||||||||||||||||||
| Profit from operations |
104,542 | 7.3 | 120,000 | 8.0 | 135,000 | 8.7 | 29.1 | |||||||||||||||||||||
| Income before income taxes |
137,849 | 9.7 | 150,000 | 10.0 | 170,000 | 10.9 | 23.3 | |||||||||||||||||||||
| Net income attributable to Kyocera Corporation’s shareholders |
103,843 | 7.3 | 105,000 | 7.0 | 119,000 | 7.6 | 14.6 | |||||||||||||||||||||
| Average US$ exchange rate |
108 | — | 108 | — | 111 | — | — | |||||||||||||||||||||
| Average Euro exchange rate |
119 | — | 115 | — | 128 | — | — | |||||||||||||||||||||
8
Table of Contents
Net Sales by Reporting Segment
| Forecasts for the year
ending March 31, 2018 announced on |
Increase (Decrease) to Results |
|||||||||||||||||||||||||||
| Results for the year ended March 31, 2017 |
May 1,
2017 (Previous) |
October 30,
2017 (Revised) |
||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | % | ||||||||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||||||||||
| Industrial & Automotive Components Group |
¥ | 230,229 | 16.2 | ¥ | 246,000 | 16.4 | ¥ | 280,000 | 18.0 | 21.6 | ||||||||||||||||||
| Semiconductor Components Group |
245,727 | 17.3 | 248,000 | 16.5 | 256,000 | 16.4 | 4.2 | |||||||||||||||||||||
| Electronic Devices Group |
240,798 | 16.9 | 254,000 | 17.0 | 289,000 | 18.5 | 20.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Components Business |
716,754 | 50.4 | 748,000 | 49.9 | 825,000 | 52.9 | 15.1 | |||||||||||||||||||||
| Communications Group |
252,641 | 17.7 | 269,000 | 17.9 | 255,000 | 16.4 | 0.9 | |||||||||||||||||||||
| Document Solutions Group |
324,012 | 22.8 | 350,000 | 23.4 | 350,000 | 22.4 | 8.0 | |||||||||||||||||||||
| Life & Environment Group |
149,207 | 10.5 | 153,000 | 10.2 | 139,000 | 8.9 | (6.8 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Equipment & Systems Business |
725,860 | 51.0 | 772,000 | 51.5 | 744,000 | 47.7 | 2.5 | |||||||||||||||||||||
| Others |
22,066 | 1.5 | 16,000 | 1.0 | 17,000 | 1.1 | (23.0 | ) | ||||||||||||||||||||
| Adjustments and eliminations |
(41,926 | ) | (2.9 | ) | (36,000 | ) | (2.4 | ) | (26,000 | ) | (1.7 | ) | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net sales |
¥ | 1,422,754 | 100.0 | ¥ | 1,500,000 | 100.0 | ¥ | 1,560,000 | 100.0 | 9.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating Profit (Loss) by Reporting Segment | ||||||||||||||||||||||||||||
| Forecasts for the year
ending March 31, 2018 announced on |
Increase (Decrease) to Results |
|||||||||||||||||||||||||||
| Results for the year ended March 31, 2017 |
May 1,
2017 (Previous) |
October 30,
2017 (Revised) |
||||||||||||||||||||||||||
| Amount | %* | Amount | %* | Amount | %* | % | ||||||||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||||||||||
| Industrial & Automotive Components Group |
¥ | 22,442 | 9.7 | ¥ | 26,000 | 10.6 | ¥ | 30,000 | 10.7 | 33.7 | ||||||||||||||||||
| Semiconductor Components Group |
25,310 | 10.3 | 26,000 | 10.5 | 35,000 | 13.7 | 38.3 | |||||||||||||||||||||
| Electronic Devices Group |
30,558 | 12.7 | 33,000 | 13.0 | 40,000 | 13.8 | 30.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Components Business |
78,310 | 10.9 | 85,000 | 11.4 | 105,000 | 12.7 | 34.1 | |||||||||||||||||||||
| Communications Group |
8,528 | 3.4 | 13,000 | 4.8 | 1,000 | 0.4 | (88.3 | ) | ||||||||||||||||||||
| Document Solutions Group |
28,080 | 8.7 | 35,000 | 10.0 | 40,000 | 11.4 | 42.5 | |||||||||||||||||||||
| Life & Environment Group |
1,345 | 0.9 | 3,000 | 2.0 | 1,000 | 0.7 | (25.7 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Equipment & Systems Business |
37,953 | 5.2 | 51,000 | 6.6 | 42,000 | 5.6 | 10.7 | |||||||||||||||||||||
| Others |
(1,759 | ) | — | (3,000 | ) | — | (1,000 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating profit |
114,504 | 8.0 | 133,000 | 8.9 | 146,000 | 9.4 | 27.5 | |||||||||||||||||||||
| Corporate and others |
23,345 | — | 17,000 | — | 24,000 | — | 2.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income before income taxes |
¥ | 137,849 | 9.7 | ¥ | 150,000 | 10.0 | ¥ | 170,000 | 10.9 | 23.3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| * | % to net sales of each corresponding segment |
Note: Kyocera has changed the classification of its reporting segments from the year ending March 31, 2018. Business results for the year ended March 31, 2017 have been reclassified in line with the change to reporting segment classifications.
9
Table of Contents
2. CONSOLIDATED FINANCIAL STATEMENTS
(1) Consolidated Balance Sheets (Unaudited)
| March 31, 2017 | September 30, 2017 | Increase (Decrease) |
||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: |
||||||||||||||||||||
| Cash and cash equivalents |
¥ | 376,195 | ¥ | 392,659 | ¥ | 16,464 | ||||||||||||||
| Short-term investments in debt securities |
84,703 | 69,025 | (15,678 | ) | ||||||||||||||||
| Other short-term investments |
212,668 | 205,898 | (6,770 | ) | ||||||||||||||||
| Trade notes receivables |
28,370 | 22,840 | (5,530 | ) | ||||||||||||||||
| Trade accounts receivables |
291,485 | 300,544 | 9,059 | |||||||||||||||||
| Less allowances for doubtful accounts and sales returns |
(5,593 | ) | (5,258 | ) | 335 | |||||||||||||||
| Inventories |
331,155 | 357,237 | 26,082 | |||||||||||||||||
| Other current assets |
119,714 | 128,406 | 8,692 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current assets |
1,438,697 | 46.3 | 1,471,351 | 45.9 | 32,654 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-current assets: |
||||||||||||||||||||
| Investments and advances: |
||||||||||||||||||||
| Long-term investments in debt and equity securities |
1,130,756 | 1,146,260 | 15,504 | |||||||||||||||||
| Other long-term investments |
22,246 | 24,984 | 2,738 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investments and advances |
1,153,002 | 37.0 | 1,171,244 | 36.6 | 18,242 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Property, plant and equipment: |
||||||||||||||||||||
| Land |
59,963 | 60,048 | 85 | |||||||||||||||||
| Buildings |
351,431 | 356,622 | 5,191 | |||||||||||||||||
| Machinery and equipment |
841,973 | 855,766 | 13,793 | |||||||||||||||||
| Construction in progress |
14,097 | 16,880 | 2,783 | |||||||||||||||||
| Less accumulated depreciation |
(1,000,860 | ) | (1,012,867 | ) | (12,007 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total property, plant and equipment |
266,604 | 8.6 | 276,449 | 8.6 | 9,845 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Goodwill |
110,470 | 3.5 | 141,130 | 4.4 | 30,660 | |||||||||||||||
| Intangible assets |
61,235 | 2.0 | 65,976 | 2.1 | 4,741 | |||||||||||||||
| Other assets |
80,462 | 2.6 | 76,846 | 2.4 | (3,616 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-current assets |
1,671,773 | 53.7 | 1,731,645 | 54.1 | 59,872 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
¥ | 3,110,470 | 100.0 | ¥ | 3,202,996 | 100.0 | ¥ | 92,526 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
10
Table of Contents
| March 31, 2017 | September 30, 2017 | Increase (Decrease) |
||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||
| LIABILITIES AND EQUITY |
||||||||||||||||||||
| Current liabilities: |
||||||||||||||||||||
| Short-term borrowings |
¥ | 191 | ¥ | 142 | ¥ | (49 | ) | |||||||||||||
| Current portion of long-term debt |
8,235 | 8,789 | 554 | |||||||||||||||||
| Trade notes and accounts payable |
129,460 | 140,295 | 10,835 | |||||||||||||||||
| Other notes and accounts payable |
60,881 | 59,247 | (1,634 | ) | ||||||||||||||||
| Accrued payroll and bonus |
62,868 | 66,325 | 3,457 | |||||||||||||||||
| Accrued income taxes |
15,707 | 14,537 | (1,170 | ) | ||||||||||||||||
| Other accrued liabilities |
51,062 | 53,376 | 2,314 | |||||||||||||||||
| Other current liabilities |
36,257 | 36,922 | 665 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current liabilities |
364,661 | 11.7 | 379,633 | 11.9 | 14,972 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-current liabilities: |
||||||||||||||||||||
| Long-term debt |
16,409 | 17,953 | 1,544 | |||||||||||||||||
| Accrued pension and severance liabilities |
31,720 | 32,630 | 910 | |||||||||||||||||
| Deferred income taxes |
258,859 | 257,381 | (1,478 | ) | ||||||||||||||||
| Other non-current liabilities |
19,912 | 20,260 | 348 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-current liabilities |
326,900 | 10.5 | 328,224 | 10.2 | 1,324 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
691,561 | 22.2 | 707,857 | 22.1 | 16,296 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Equity: Kyocera Corporation’s shareholders’ equity: |
||||||||||||||||||||
| Common stock |
115,703 | 115,703 | — | |||||||||||||||||
| Additional paid-in capital |
165,230 | 164,969 | (261 | ) | ||||||||||||||||
| Retained earnings |
1,638,116 | 1,677,440 | 39,324 | |||||||||||||||||
| Accumulated other comprehensive income |
447,479 | 480,648 | 33,169 | |||||||||||||||||
| Common stock in treasury, at cost |
(32,309 | ) | (32,328 | ) | (19 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Kyocera Corporation’s shareholders’ equity |
2,334,219 | 75.1 | 2,406,432 | 75.1 | 72,213 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Noncontrolling interests |
84,690 | 2.7 | 88,707 | 2.8 | 4,017 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total equity |
2,418,909 | 77.8 | 2,495,139 | 77.9 | 76,230 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and equity |
¥ | 3,110,470 | 100.0 | ¥ | 3,202,996 | 100.0 | ¥ | 92,526 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Note: Accumulated other comprehensive income is as follows: | ||||||||||||||||||||
| March 31, 2017 | September 30, 2017 | Increase (Decrease) |
||||||||||||||||||
| (Yen in millions) | ||||||||||||||||||||
| Net unrealized gains on securities |
¥ | 499,650 | ¥ | 515,650 | ¥ | 16,000 | ||||||||||||||
| Net unrealized losses on derivative financial instruments |
(449 | ) | (428 | ) | 21 | |||||||||||||||
| Pension liability adjustment |
(35,362 | ) | (36,453 | ) | (1,091 | ) | ||||||||||||||
| Foreign currency translation adjustments |
(16,360 | ) | 1,879 | 18,239 | ||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| Total |
¥ | 447,479 | ¥ | 480,648 | ¥ | 33,169 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
11
Table of Contents
(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)
Consolidated Statements of Income
| Six months ended September 30, | Increase (Decrease) |
|||||||||||||||||||||||
| 2016 | 2017 | |||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| (Yen in millions and shares in thousands, except per share amounts) | ||||||||||||||||||||||||
| Net sales |
¥ | 653,243 | 100.0 | ¥ | 738,345 | 100.0 | ¥ | 85,102 | 13.0 | |||||||||||||||
| Cost of sales |
488,049 | 74.7 | 533,191 | 72.2 | 45,142 | 9.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Gross profit |
165,194 | 25.3 | 205,154 | 27.8 | 39,960 | 24.2 | ||||||||||||||||||
| Selling, general and administrative expenses |
131,409 | 20.1 | 135,649 | 18.4 | 4,240 | 3.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Profit from operations |
33,785 | 5.2 | 69,505 | 9.4 | 35,720 | 105.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Other income (expenses): |
||||||||||||||||||||||||
| Interest and dividend income |
15,903 | 2.4 | 20,831 | 2.8 | 4,928 | 31.0 | ||||||||||||||||||
| Interest expense |
(1,385 | ) | (0.2 | ) | (656 | ) | (0.1 | ) | 729 | — | ||||||||||||||
| Foreign currency transaction gains (losses), net |
(238 | ) | (0.0 | ) | 150 | 0.0 | 388 | — | ||||||||||||||||
| Gains on sales of securities, net |
103 | 0.0 | 389 | 0.1 | 286 | 277.7 | ||||||||||||||||||
| Other, net |
410 | 0.0 | (2,379 | ) | (0.3 | ) | (2,789 | ) | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total other income (expenses) |
14,793 | 2.2 | 18,335 | 2.5 | 3,542 | 23.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income before income taxes |
48,578 | 7.4 | 87,840 | 11.9 | 39,262 | 80.8 | ||||||||||||||||||
| Income taxes |
10,302 | 1.5 | 23,043 | 3.1 | 12,741 | 123.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income |
38,276 | 5.9 | 64,797 | 8.8 | 26,521 | 69.3 | ||||||||||||||||||
| Net income attributable to noncontrolling interests |
(2,123 | ) | (0.4 | ) | (3,410 | ) | (0.5 | ) | (1,287 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income attributable to Kyocera Corporation’s shareholders |
¥ | 36,153 | 5.5 | ¥ | 61,387 | 8.3 | ¥ | 25,234 | 69.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Per share information: |
||||||||||||||||||||||||
| Net income attributable to Kyocera Corporation’s shareholders: |
||||||||||||||||||||||||
| Basic |
¥ | 98.47 | ¥ | 166.94 | ||||||||||||||||||||
| Diluted |
98.47 | 166.94 | ||||||||||||||||||||||
| Average number of shares of common stock outstanding: |
||||||||||||||||||||||||
| Basic |
367,143 | 367,711 | ||||||||||||||||||||||
| Diluted |
367,143 | 367,711 | ||||||||||||||||||||||
Note:
Basic earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to Kyocera Corporation’s shareholders is calculated based on the diluted average number of shares of stock outstanding during each period.
12
Table of Contents
Consolidated Statements of Comprehensive Income
| Six months ended September 30, | Increase (Decrease) |
|||||||||||
| 2016 | 2017 | |||||||||||
| Amount | Amount | Amount | ||||||||||
| (Yen in millions) | ||||||||||||
| Net income |
¥ | 38,276 | ¥ | 64,797 | ¥ | 26,521 | ||||||
|
|
|
|
|
|
|
|||||||
| Other comprehensive income—net of taxes |
||||||||||||
| Net unrealized gains on securities |
19,660 | 16,006 | (3,654 | ) | ||||||||
| Net unrealized gains on derivative financial instruments |
28 | 8 | (20 | ) | ||||||||
| Pension liability adjustment |
1,395 | (1,118 | ) | (2,513 | ) | |||||||
| Foreign currency translation adjustments |
(63,076 | ) | 20,067 | 83,143 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total other comprehensive income |
(41,993 | ) | 34,963 | 76,956 | ||||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive income |
(3,717 | ) | 99,760 | 103,477 | ||||||||
| Comprehensive income attributable to noncontrolling interests |
5,644 | (5,228 | ) | (10,872 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive income attributable to Kyocera Corporation’s shareholders |
¥ | 1,927 | ¥ | 94,532 | ¥ | 92,605 | ||||||
|
|
|
|
|
|
|
|||||||
(3) Notes to the consolidated financial statements
Cautionary Statement for Premise of a Going Concern
Not applicable.
Cautionary Statement for Significant Changes in Equity
Not applicable.
Increase or Decrease in Significant Subsidiaries during the six months ended September 30, 2017
For the six months ended September 30, 2017, Kyocera Crystal Device Corporation which was Kyocera Corporation’s significant subsidiary was excluded from consolidation of Kyocera Corporation due to dissolution of Kyocera Crystal Device Corporation resulted from absorption-type merger with Kyocera Corporation as the surviving company on April 1, 2017.
Changes in Accounting Policies
Recently Adopted Accounting Standards
The accounting standards which Kyocera adopted on or after April 1, 2017 did not have material impacts on Kyocera’s consolidated results of operations, financial condition and cash flows.
13
Table of Contents
Exhibit 2. Notice relating to Revision of Consolidated Financial Forecasts for the Year Ending March 31, 2018 (“fiscal 2018”), Distribution of Interim Dividend for fiscal 2018 and Revision of Year-end Dividend Forecast for fiscal 2018
This is to advise you that Kyocera Corporation (the “Company”) has adopted resolutions at a meeting of its Board of Directors held on October 30, 2017 in respect of revision of its consolidated financial forecasts for fiscal 2018, which were originally announced on May 1, 2017, distribution of interim dividend for fiscal 2018 and revision of its year-end dividend forecast for fiscal 2018 as set forth below, taking into consideration the performance for the six months ended September 30, 2017 (the “first six months”) and the business environment forecast for the remaining period of fiscal, 2018 (from October 1, 2017 to March 31, 2018).
1. Revision of consolidated financial forecasts
(1) Consolidated financial forecasts for fiscal 2018
| Net sales | Profit from operations |
Income before income taxes |
Net income attributable to Kyocera Corporation’s shareholders |
Earnings
per share attributable to Kyocera Corporation’s shareholders |
||||||||||||||||
| Million | Million | Million | Million | Yen | ||||||||||||||||
| Forecast previously published (A) |
¥ | 1,500,000 | ¥ | 120,000 | ¥ | 150,000 | ¥ | 105,000 | ¥ | 285.55 | *1 | |||||||||
| Revision made (B) |
¥ | 1,560,000 | ¥ | 135,000 | ¥ | 170,000 | ¥ | 119,000 | ¥ | 323.62 | *2 | |||||||||
| Amount of increase (B-A) |
¥ | 60,000 | ¥ | 15,000 | ¥ | 20,000 | ¥ | 14,000 | — | |||||||||||
| Ratio of increase (%) |
4.0 | % | 12.5 | % | 13.3 | % | 13.3 | % | — | |||||||||||
| (c.f.) Results for previous fiscal year |
¥ | 1,422,754 | ¥ | 104,542 | ¥ | 137,849 | ¥ | 103,843 | ¥ | 282.62 | ||||||||||
| *1: | Based on the diluted average number of shares outstanding during the three months ended June 30, 2017. |
| *2: | Based on the diluted average number of shares outstanding during the first six months. |
(2) Reason for revision
Performance in the first six months exceeded expectations, especially in the Components Business, reflecting a favorable business environment. Increased demand is forecast to continue for the remaining period of fiscal 2018, especially for parts used in industrial machinery and automotive-related markets. In addition, depreciation of the yen is now forecast to exceed the original forecast, also contributing to anticipated sales and profit exceeding those forecasts in May 2017.
2. Distribution of interim dividend and reason for the dividend amount
The Company determined the amount of its dividend as set forth below, pursuant to its basic profit allocation policy.
| Determined amount | Most recent
forecast (Published on May 1, 2017) |
(Reference) Interim dividend for previous fiscal year |
||||||||||
| Record date |
September 30, 2017 | September 30, 2017 | September 30, 2016 | |||||||||
| Dividend per share |
¥ | 60 | — | ¥ | 50 | |||||||
| Total amount of dividend |
¥ | 22,063 million | — | ¥ | 18,386 million | |||||||
| Effective date |
December 5, 2017 | — | December 5, 2016 | |||||||||
| Source of dividend |
Retained earnings | — | Retained earnings | |||||||||
1
Table of Contents
3. Revision of year-end dividend forecasts for fiscal 2018 and reason for revision
The Company revised is forecast for the amount of its year-end dividend for fiscal 2018 based on consolidated performance for the first six months, consolidated financial forecasts for fiscal 2018 and pursuant to its dividend policy.
| Dividend per share | ||||||||||||
| Interim dividend | Year-end dividend | Annual | ||||||||||
| Forecast previously published (Published on May 1, 2017) |
— | — | ¥ | 110 | ||||||||
| Revision made (Published on October 30, 2017) |
— | ¥ | 60 | ¥ | 120 | |||||||
| Results for fiscal 2018 |
¥ | 60 | — | — | ||||||||
| Results for previous fiscal year |
¥ | 50 | ¥ | 60 | ¥ | 110 | ||||||
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