KYOCERA Announces Consolidated Financial Results for Three Months Ended June 30, 2018

KYOTO, Japan--(BUSINESS WIRE)--Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the first quarter of fiscal year 2019 (the three months ended June 30, 2018, or “FY19-Q1”), as summarized below. From FY19-Q1, Kyocera Corporation and its consolidated subsidiaries have adopted International Financial Reporting Standards (“IFRS”) in lieu of U.S. Generally Accepted Accounting Principles. In addition, financial figures for the previous first quarter (the three months ended June 30, 2017, or “FY18-Q1”) and the fiscal year ended March 31, 2018 (“fiscal 2018”) have been reclassified below in accordance with IFRS for the purpose of comparative analysis. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Results of Operations: Three Months Ended June 30

Unit: Millions (except percentages and per-share amounts)
	Three Months Ended June 30,
	2017 (FY18-Q1) in JPY	2018 (FY19-Q1) in JPY	Change		2018 (FY19-Q1) in USD	2018 (FY19-Q1) in EUR
			Amount in JPY	%
Sales revenue:	345,162	387,484	42,322	12.3	3,491	3,027
Operating profit:	31,260	37,104	5,844	18.7	334	290
Profit before income taxes:	49,353	55,488	6,135	12.4	500	434
Profit attributable to owners of the parent:	35,026	42,284	7,258	20.7	381	330
Earnings per share attributable to owners of the parent (basic):	95.25	116.29	－	－	1.05	0.91

Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above as a convenience to the reader, based on the rates of USD1 = JPY111 and EUR1 = JPY128, rounded to the nearest unit (as of June 30, 2018)

Summary

Kyocera Corporation (“the Company”) attained record sales revenue of JPY387,484 (USD3,491) million during the first quarter, an increase of 12.3% over the prior first quarter, due mainly to the following:

• The Electronic Devices Group and Industrial & Automotive Components Group both experienced robust demand coupled with new sales contributions from units merged and acquired during the prior fiscal year.
• Sales in the Document Solutions Group increased as a result of aggressive sales promotion activities, new sales contributions from businesses gained through M&A during the prior fiscal year, and the impact of foreign exchange rate fluctuations.

Operating profit increased 18.7%, to JPY37,104 (USD334) million, due mainly to sales growth and continued cost reduction. Profit before income taxes increased 12.4%, to JPY55,488 (USD500) million, and profit attributable to owners of the parent increased 20.7%, to JPY42,284 (USD381) million.

Averaged exchange rates during the first quarter show the Japanese yen strengthened against the U.S. dollar by approximately 1.8%, to JPY109; and weakened against the euro by approximately 6.6%, to JPY130, as compared with averages from the prior first quarter. This had the effect of increasing sales revenue and profit before income taxes by approximately JPY2,000 (USD18) million respectively.

Consolidated Future Forecasts: Year Ending March 31, 2019

FY19-Q1 financial results were in line with the Company’s original projections as a whole. Since demand for components used in automotive and industrial machinery markets is expected to increase, and the Document Solutions Group is expected to expand sales both in the second quarter (three months ending September 30, 2018) and beyond, the Company makes no change to the sales revenue and profit forecasts for the year ending March 31, 2019 that it announced on April 26, 2018.

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
	Fiscal 2018 Results	Fiscal 2019 Forecast		Change (%) from Fiscal 2018 Results
Sales revenue:	1,577,039	1,650,000		4.6
Operating profit:	90,699	154,000		69.8
Profit before income taxes:	129,992	190,000		46.2
Profit attributable to owners of the parent:	79,137	134,000		69.3
Earnings per share attributable to owners of the parent (basic):	215.22	368.54	*	-
Average USD exchange rate:	111	105		-
Average EUR exchange rate:	130	130		-

*Forecast of “Earnings per share attributable to owners of the parent (basic)” is calculated using the average number of shares outstanding during the three months ended June 30, 2018.

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 (TOKYO:6971; https://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 industrial and automotive components, semiconductor packages, electronic devices, solar power generating systems, printers, copiers, and mobile phones. During the year ended March 31, 2018, the company’s sales revenue totaled 1.58 trillion yen (approx. USD14.9 billion). Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #612 on Forbes magazine’s 2018 “Global 2000” listing of the world’s largest publicly traded companies.