Consolidated Financial Results for the Three Months Ended June 30, 2022 (IFRS)

KYOCERA CORPORATION

August 1, 2022

Company name:

Stock Listing: Tokyo Stock Exchange

Code number:

6971

URL: https://global.kyocera.com/

Representative:

Hideo Tanimoto, Director and President

Contact person:

Hiroaki Chida, Executive Officer and General Manager of Corporate Management Control Group

TEL: +81-75-604-3500

Scheduled date of quarterly report filing:

August 10, 2022

Scheduled date for commencement of dividend payments:

Supplementary documents of the quarterly financial results: Yes

Holding quarterly financial results meeting: Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022

(1) Consolidated operating results

(% of change from the same period of the previous year)

Sales revenue

Operating profit

Profit before

Profit attributable to

Comprehensive

income taxes

owners of the parent

income for the period

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2022

491,954

16.9

41,428

28.0

68,711

26.1

49,974

22.6

196,476

254.5

June 30, 2021

420,712

32.7

32,376

327.5

54,476

79.1

40,760

82.1

55,417

53.5

Earnings per share attributable to

Earnings per share attributable to

owners of the parent - Basic

owners of the parent - Diluted

Three months ended

Yen

Yen

June 30, 2022

139.24

June 30, 2021

112.46

(2) Consolidated financial position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners

owners of the parent

of the parent to total assets

As of

Million yen

Million yen

Million yen

%

June 30, 2022

4,113,028

3,061,247

3,034,024

73.8

March 31, 2022

3,917,265

2,898,273

2,871,554

73.3

2. Cash Dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended

90.00

90.00

180.00

March 31, 2022

Year ending

March 31, 2023

Year ending

200.00

March 31, 2023

(forecast)

(Note) Revision of previously announced dividend targets during this reporting period: None

Dividends per share for the year ending March 31, 2023 are forecasted to be 200 yen on an annual basis.

3. Consolidated Financial Forecasts for the Year Ending March 31, 2023

(% of change from the previous year)

Profit before

Profit attributable to

Earnings per share

Sales revenue

Operating profit

attributable to owners

income taxes

owners of the parent

of the parent - Basic

Year ending

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

March 31, 2023

2,000,000

8.8

174,000

16.8

220,000

10.6

154,000

3.8

429.09

(Note) Revision of previously announced financial forecast during this reporting period: None

"Earnings per share attributable to owners of the parent - Basic" is calculated using the average number of shares outstanding for the three months ended June 30, 2022.

Notes

(1) Changes in significant subsidiaries during the period

(Changes in specified subsidiaries that caused a change in the scope of consolidation): None

  1. Changes in accounting policies and accounting estimates
    1. Changes in accounting policies required under IFRS: None
    2. Changes in accounting policies due to reasons other than (i): None
    3. Changes in accounting estimates: Yes

Please refer to page 13 "(4) Notes to Condensed Quarterly Consolidated Financial Statements b. Changes in Accounting Estimates" under "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes" for details.

  1. Number of shares issued (common stock)
    1. Number of shares issued (including treasury stock):

As of June 30, 2022

377,618,580 shares

As of March 31, 2022

377,618,580 shares

(ii) Number of treasury stock:

As of June 30, 2022

18,718,084 shares

As of March 31, 2022

18,717,679 shares

(iii) Average number of shares outstanding:

For the three months ended June 30, 2022

358,900,726 shares

For the three months ended June 30, 2021

362,440,135 shares

Instruction for Forecasts and Other Notes

1. Cautionary statements with respect to forward-looking statements

Certain of the statements made in this document are forward-looking statements, 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 or export;
  3. The effect of foreign exchange fluctuations on our results of operations;
  4. Intense competitive pressures to which our products are subject;
  5. Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in our production activities;
  6. Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;
  7. The possibility that future initiatives and in-process research and development may not produce the desired results;
  8. Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities;
  9. Inability to secure skilled employees;
  10. Damages on our information security systems from cyberattacks, etc. and significant costs in order to recover and maintain the systems;
  11. Insufficient protection of our trade secrets and intellectual property rights including patents;
  12. Expenses associated with licenses we require to continue to manufacture and sell products;
  13. Unintentional conflict with laws and regulations or newly enacted laws and regulations;
  14. Environmental liability and compliance obligations by tightening of environmental laws and regulations;
  15. Inability to respond to global climate change problems or delay in such response, which may lead to increased costs and negatively impact our corporate brands;
  16. Our market or supply chains being affected by plague, infectious diseases, terrorism, 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 financial instruments held by us;
  20. Impairment losses on property, plant and equipment, goodwill and intangible assets;
  21. Uncertainty over income tax and deferred tax assets; and
  22. Changes in accounting standards.

Due to such risks, uncertainties and other factors, our actual results, performance, achievements or financial condition may be substantially 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.

  1. This consolidated financial report is not subject to quarterly review procedures by certified public accountants or auditing firms.
  2. Method of obtaining supplementary materials on the financial results

The supplementary documents will be posted on the corporate website on August 1, 2022.

4. English translation

This is an English translation of the Japanese original of "Consolidated Financial Results for the Three Months Ended June 30, 2022." The translation is prepared for the reference and convenience solely for those who do not use Japanese. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

(Attachment)

Table of Contents

1. Qualitative Information related to Consolidated Financial Results ………………………………………

2

(1) Explanation of Consolidated Financial Results …………………………………………………………

2

(2) Explanation of Consolidated Financial Position …………………………………………………………

5

(3) Explanation Regarding Future Projection Including Consolidated Financial Forecasts …………………

6

2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ……………………………

8

(1) Condensed Quarterly Consolidated Statement of Financial Position ……………………………………

8

(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income …………

10

a. Condensed Quarterly Consolidated Statement of Profit or Loss ………………………………………

10

b. Condensed Quarterly Consolidated Statement of Comprehensive Income ……………………………

11

(3) Condensed Quarterly Consolidated Statement of Changes in Equity ……………………………………

12

(4) Notes to Condensed Quarterly Consolidated Financial Statements ……………………………………

13

a. Notes to Going Concern Assumption …………………………………………………………………

13

b. Changes in Accounting Estimates ………………………………………………………………………

13

- 1 -

1. Qualitative Information related to Consolidated Financial Results

  1. Explanation of Consolidated Financial Results a. Consolidated Financial Results

During the three months ended June 30, 2022 ("the first quarter"), reflecting concerns about a resurgence of COVID-19 and unstable global situations, supply chain disruptions and price increases in raw materials, etc., continued. In addition, exchange rates for the yen fell sharply, affected by factors such as an interest rate hike in the United States. On the other hand, 5G and the semiconductor-related markets, our principal markets, continued to show strong demand and proactive capital investment.

At Kyocera, due to the contribution of investments in expanding component production to meet robust demand and to an increase in sales by the Industrial Tools Unit, sales revenue for the first quarter increased by 71,242 million yen, or 16.9%, to 491,954 million yen, as compared with the three months ended June 30, 2021 ("the previous first quarter"), marking a record high for a quarterly period.

Profit also increased as compared with the previous first quarter, due to the increase in sales revenue and impact of the weaker yen, as well as the efforts to improve productivity in each business. As compared with the previous first quarter, operating profit increased by 9,052 million yen, or 28.0%, to 41,428 million yen, profit before income taxes increased by 14,235 million yen, or 26.1%, to 68,711 million yen, and profit attributable to owners of the parent increased by 9,214 million yen, or 22.6%, to 49,974 million yen.

The average exchange rates for the first quarter were 130 yen to the U.S. dollar and 138 yen to the euro, marking depreciation of 21 yen, or 19.3%, and 6 yen, or 4.5%, respectively, as compared with the previous first quarter. As a result, sales revenue and profit before income taxes after translation into yen for the first quarter were pushed up by approximately 44 billion yen and approximately 11.5 billion yen, respectively, as compared with the previous first quarter.

Consolidated Financial Results

(Yen in millions)

For the three months ended

For the three months ended

Change

June 30, 2021

June 30, 2022

Amount

%*

Amount

%*

Amount

%

Sales revenue

420,712

100.0

491,954

100.0

71,242

16.9

Operating profit

32,376

7.7

41,428

8.4

9,052

28.0

Profit before income taxes

54,476

12.9

68,711

14.0

14,235

26.1

Profit attributable to owners of the parent

40,760

9.7

49,974

10.2

9,214

22.6

Average US$ exchange rate

(Yen)

109

130

Average Euro exchange rate

(Yen)

132

138

Capital expenditures

34,199

8.1

44,367

9.0

10,168

29.7

Depreciation charge of

20,510

4.9

25,310

5.1

4,800

23.4

property, plant and equipment

Research and development expenses

20,106

4.8

22,425

4.6

2,319

11.5

* % represents the percentage to sales revenue.

- 2 -

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Disclaimer

Kyocera Corporation published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 07:33:04 UTC.