KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2013

Company raises full-year forecasts for sales amid strong demand for solar energy and the acquisition of NEC Toppan Circuit Solutions, Inc.

KYOTO, Japan--(BUSINESS WIRE)--Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced consolidated financial results for the first half of fiscal year 2014 (“first half” or “FY14-H1,” covering the six months ended September 30, 2013), as summarized below. Details are available at: http://global.kyocera.com/ir/financial/f_results.html

Consolidated Financial Highlights: First Half
Unit: Millions (except percentages and per-share amounts)
	Six Months Ended September 30,
	2012 (FY13-H1) in JPY	2013 (FY14-H1) in JPY	Increase (Decrease)		2013 (FY14-H1) in USD	2013 (FY14-H1) in EUR
			Amount in JPY	%
Net sales:	608,431	699,663	91,232	15.0	7,139	5,300
Profit from operations:	25,891	58,203	32,312	124.8	594	441
Income before income taxes:	35,732	69,053	33,321	93.3	705	523
Net income attributable to shareholders of Kyocera Corporation:	25,371	42,930	17,559	69.2	438	325
Diluted earnings per share attributable to shareholders of Kyocera Corporation*^1:	69.15	117.02	-	-	1.19	0.89
Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY98 and EUR1 = JPY132, rounded to the nearest unit.

Summary

Digital equipment, including the components required therein, represents the principal market for Kyocera Corporation and its consolidated subsidiaries (“the Kyocera Group” or “Kyocera”). While the first half brought weaker demand for conventional mobile phones, PCs and flat-screen TVs, rising demand for smartphones and tablet PCs led to growth in the digital equipment market overall as compared to the prior first half. Additionally, the solar energy market expanded, most significantly in Japan. Stronger demand and improved productivity allowed Kyocera to enhance profitability in all Components Business segments, especially the Applied Ceramic Products Group (which includes the solar energy business). Moreover, first-half profit grew considerably due to the absence of an environmental remediation charge of JPY21,300 (USD266) million^*2 recorded in the previous first half at AVX Corporation, a U.S.-based consolidated subsidiary.

Consolidated net sales increased 15.0% over the prior first-half results, to JPY699,663 (USD7,139) million; profit from operations increased 124.8%, to JPY58,203 (USD594) million; income before income taxes increased 93.3%, to JPY69,053 (USD705) million; and net income attributable to shareholders of Kyocera Corporation increased 69.2%, to JPY42,930 (USD438) million.

“In the first half, consolidated sales increased significantly in our solar energy, telecommunications equipment, and information equipment businesses. Combined with the effects of the yen’s depreciation against the dollar and euro, we achieved a 15 percent revenue increase year-on-year and recorded our highest half-year sales to date,” said Kyocera Corporation President Goro Yamaguchi. “We also expect to see continued strong sales of solar products in the second half, and have thus upwardly revised our previously announced solar sales target of 1 gigawatt to 1.2 gigawatts for the fiscal year.”

Consolidated Financial Highlights: Second Quarter
Unit: Millions (except percentages)
Against FY13-Q2	Three Months Ended September 30,
	2012 (FY13-Q2) in JPY	2013 (FY14-Q2) in JPY	Increase (Decrease)		2013 (FY14-Q2) in USD	2013 (FY14-Q2) in EUR
			Amount in JPY	%
Net sales:	310,705	368,008	57,303	18.4	3,755	2,788
Profit from operations:	27,893	32,805	4,912	17.6	335	249
Income before income taxes:	31,005	34,240	3,235	10.4	349	259
Net income attributable to shareholders of Kyocera Corporation:	18,801	20,279	1,478	7.9	207	154
Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY98 and EUR1 = JPY132, rounded to the nearest unit.

Consolidated Financial Forecasts: Year Ending March 31, 2014

In the second half of this fiscal year (the six months ending March 31, 2014), Kyocera expects rising demand in its solar energy business to drive results in the Applied Ceramic Products Group beyond those projected in our earlier forecasts. In addition, the newly consolidated Kyocera Circuit Solutions, Inc.^*3 will begin contributing to Kyocera’s results from October 2013 onward. Kyocera has therefore made an upward revision to its previously announced consolidated sales forecasts. Additionally, the company has revised its forecasts of average exchange rates for the second half from the projections announced in August 2013.

Consolidated Forecasts: Year Ending March 31, 2014
Unit: Yen in millions	(except percentages, per-share amounts and exchange rates)
		Fiscal 2014 Forecasts Announced on		Increase (Decrease) (%) to Fiscal 2013 Results
	Fiscal 2013 Results	April 25, 2013	October 31, 2013
Net sales:	1,280,054	1,400,000	1,430,000	11.7
Profit from operations:	76,926	140,000	140,000	82.0
Income before income taxes:	101,363	150,000	150,000	48.0
Net income attributable to shareholders of Kyocera Corporation:	66,473	96,000	96,000	44.4
Diluted earnings per share attributable to shareholders of Kyocera Corporation*^4:	181.18	261.67	261.67	-
Average USD exchange rate*^5:	83	96	98	-
Average EUR exchange rate*^5:	107	124	130	-

^*1 At the meeting of the Board of Directors of Kyocera Corporation held on August 28, 2013, a resolution was made to undertake a stock split and a stock split at the ratio of two for one of all common shares was undertaken effective on October 1, 2013. "Diluted earnings per share attributable to shareholders of Kyocera Corporation" is computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.
^*2 This charge was converted into yen using the P&L rate of USD1 = JPY80, the average exchange rate in FY13-Q1, rounded to the nearest unit, according to the actual amount recorded in Kyocera’s FY13-Q1 consolidated results.
^*3 Kyocera acquired 100% of the shares of NEC Toppan Circuit Solutions, Inc. (now Kyocera Circuit Solutions, Inc.), a printed circuit board (PCB) manufacturing company, and made it a consolidated subsidiary as of October 1, 2013.
^*4 "Diluted earnings per share attributable to shareholders of Kyocera Corporation" announced on October 31, 2013 (Revised) is computed based on the average number of shares outstanding during the six months ended September 30, 2013. "Diluted earnings per share attributable to shareholders of Kyocera Corporation" is computed under the assumption that the stock split, which took effect on October 1, 2013, was undertaken at the beginning of the year ended March 31, 2013.
^*5 "Diluted earnings per share attributable to shareholders of Kyocera Corporation" and "Average exchange rates against the U.S. dollar and the Euro" as set forth in the previous forecast, have been revised on August 1, 2013.

FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company’s filings with the U.S. Securities and Exchange Commission.

About KYOCERA

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) (http://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of solar power generating systems, mobile phones, printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. During the year ended March 31, 2013, the company’s net sales totaled 1.28 trillion yen (approx. USD13.6 billion). The company is ranked #492 on Forbes magazine’s 2013 “Global 2000” listing of the world’s largest publicly traded companies and in 2013 was ranked by Ceramic Industry magazine as the world’s No.1 manufacturer of advanced ceramics.