KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2022

Rhea-AI Summary

Kyocera Corporation has announced its FY23-H1 results, reporting a record sales revenue of JPY 1,012,172 million (USD 6,980 million), a 15.5% increase from the previous year. Despite challenges like raw material cost spikes and supply chain disruptions, profits rose slightly, with operating profit up 1.1% to JPY 76,488 million. Key growth areas included 5G and semiconductor components. However, the Communications unit saw a sales decline, and significant one-time litigation costs impacted profits. Outlook remains cautious due to global economic instability.

Positive

• Record sales revenue of JPY 1,012,172 million (USD 6,980 million), up 15.5% YoY.
• Operating profit increased slightly by 1.1% to JPY 76,488 million (USD 528 million).
• Growth in 5G and semiconductor-related components drove higher revenue.
• Total profits attributable to owners of the parent rose by 3.2% to JPY 75,586 million (USD 521 million).

Negative

• Sales decrease in the Communications unit.
• One-time litigation settlement cost of approximately JPY 7 billion (USD 48 million).

KYOTO, Japan--(BUSINESS WIRE)-- Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the first half of fiscal year 2023, covering the six months ended September 30, 2022 (the “first half,” or “FY23-H1”), as summarized below. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Results of Operations: First Half

Unit: Millions (except percentages and per-share amounts)
	Six Months Ended September 30,
	2021 (FY22-H1) in JPY	2022 (FY23-H1) in JPY	Change		2022 (FY23-H1) in USD	2022 (FY23-H1) in EUR
			Amount in JPY	%
Sales revenue:	876,337	1,012,172	135,835	15.5	6,980	7,128
Operating profit:	75,679	76,488	809	1.1	528	539
Profit before income taxes:	99,351	104,311	4,960	5.0	719	735
Profit attributable to owners of the parent:	73,219	75,586	2,367	3.2	521	532
Earnings per share attributable to owners of the parent (basic):	202.01	210.60	－	－	1.45	1.48
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 = JPY145 and EUR1 = JPY142, rounded to the nearest unit (as of September 30, 2022)

Summary

The unstable world situation further impacted supply chains during this first half, disrupting deliveries and creating strong inflationary pressure on the cost of raw materials. At the same time, the yen depreciated substantially in the foreign exchange market.

Despite supply and cost challenges, the company’s sales revenue reached a record first-half high, with increases in all three reporting segments compared to the prior first half. Recent capital investments in production infrastructure enabled the company to meet robust demand for components used in 5G- and semiconductor-related markets. Other notable revenue gains were made in the Industrial Tools and Document Solutions businesses. Additionally, the yen’s depreciation had the impact of increasing sales, after currency conversion, by approximately JPY103 billion (USD 710 million) compared to the prior first half. As a result, consolidated sales revenue increased by 15.5% over the prior first half, to JPY1,012,172 (USD 6,980) million.

Profits increased slightly, due mainly to an increased revenue as well as a favorable currency conversion factor, which alone added approximately JPY26 billion (USD179 million) to profit before income taxes. Together, these impacts more than offset a price increase of raw materials, a sales decrease in the Communications unit, and a one-time litigation settlement totaling approximately JPY7 billion (USD48 million).

Consolidated operating profit increased by 1.1% over the prior first half, to JPY76,488 (USD528) million; profit before income taxes increased by 5.0%, to JPY104,311 (USD719) million; and profit attributable to owners of the parent increased by 3.2%, to JPY75,586 (USD521) million.

Consolidated Results of Operations: Second Quarter

Unit: Millions (except percentages)
	Three Months Ended September 30,
	2021 (FY22-Q2) in JPY	2022 (FY23-Q2) in JPY	Change		2022 (FY23-Q2) in USD	2022 (FY23-Q2) in EUR
			Amount in JPY	%
Sales revenue:	455,625	520,218	64,593	14.2	3,588	3,664
Operating profit:	43,303	35,060	(8,243)	(19.0)	242	247
Profit before income taxes:	44,875	35,600	(9,275)	(20.7)	246	251
Profit attributable to owners of the parent:	32,459	25,612	(6,847)	(21.1)	177	180
(See note above regarding exchange rates)

Consolidated Forecasts: Year Ending March 31, 2023

The company’s full-year consolidated forecasts remain unchanged from those announced in April 2022. Although first-half results from the Communications unit were below forecast, consolidated results met the original projections, due mainly to increased sales of 5G- and semiconductor-related components, as well as the impact of yen depreciation. Global instability, supply challenges, rising materials costs and the prospect of a slowing economy create uncertainty for the third quarter and beyond. Nevertheless, the company will strive to acquire new business, expand sales, and further improve productivity to achieve our full-year consolidated forecasts.

The company has revised its currency exchange outlook, and now forecasts average rates of JPY134 to the U.S. dollar (from JPY115 earlier) and JPY137 to the euro (from JPY125 earlier).

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
		Fiscal 2022 Results		Fiscal 2023 Forecast Announced on April 28		Fiscal 2023 Forecast Announced on October 31		Change (%) from Fiscal 2022 Results
Sales revenue:		1,838,938		2,000,000		2,000,000		8.8
Operating profit:		148,910		174,000		174,000		16.8
Profit before income taxes:		198,947		220,000		220,000		10.6
Profit attributable to owners of the parent:		148,414		154,000		154,000		3.8
Earnings per share attributable to owners of the parent (basic):		411.15		426.63		429.08	*	-
Average USD exchange rate:		112		115		134		-
Average EUR exchange rate:		131		125		137		-
* Based on the average number of shares outstanding during the six months ended September 30, 2022

Forward‐Looking Statements
Please refer to https://global.kyocera.com/ir/disclaimer.html

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, smart energy systems, printers, copiers, and mobile phones. During the year ended March 31, 2022, the company’s consolidated sales revenue totaled 1.8 trillion yen (approx. US$15.1 billion). Kyocera is ranked #665 on Forbes magazine’s 2022 “Global 2000” list of the world’s largest publicly traded companies, and has been named among “The World’s 100 Most Sustainably Managed Companies” by The Wall Street Journal.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221030005043/en/

KYOCERA Corporation (Japan), Corporate Communications

Kenichi Hara

Tel: +81-(0)75-604-3514

Fax: +81-(0)75-604-3516

webmaster.pressgl@kyocera.jp

Source: Kyocera Corporation

FAQ

What were Kyocera's sales revenue for FY23-H1?

Kyocera reported sales revenue of JPY 1,012,172 million (USD 6,980 million) for the first half of FY23.

How did Kyocera's profits change in FY23-H1?

Kyocera's operating profit increased by 1.1% to JPY 76,488 million (USD 528 million), while profit before income taxes rose by 5.0% to JPY 104,311 million (USD 719 million).

What challenges did Kyocera face in FY23-H1?

Kyocera faced supply chain disruptions and high inflationary pressures on raw material costs, along with a sales decline in its Communications unit.

What is the outlook for Kyocera in the upcoming quarters?

Kyocera remains cautious about the outlook due to global economic instability and rising material costs but aims to acquire new business and expand sales.

What is the impact of the yen's depreciation on Kyocera's sales?

The yen's depreciation added approximately JPY 103 billion (USD 710 million) to Kyocera's sales after currency conversion.