Kyocera : Financial Presentation (Year Ended March 31, 2021)

April 27, 2021

Financial Presentation

(Year Ended March 31, 2021)

Hideo Tanimoto

President and Representative Director

This is an English translation of the Japanese original. This 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.

© KYOCERA Corporation

1. Financial Results for the Year Ended March 31, 2021

1	© KYOCERA Corporation

Financial Results for the Year Ended March 31, 2021

(Unit: Yen in millions)

				For the year ended March 31,	Change
				2020			2021
			Amount		% to sales		Amount		% to sales	Amount		%
				revenue			revenue
Sales revenue		1,599,053		100.0%		1,526,897		100.0%	-72,156		-4.5%
Operating profit	100,193		6.3%		70,644		4.6%	-29,549		-29.5%
Profit before income taxes	148,826		9.3%		117,559		7.7%	-31,267		-21.0%
Profit attributable to owners of the parent	107,721		6.7%		90,214		5.9%	-17,507		-16.3%
EPS (Basic-yen)		297.36		−		248.91		−	-48.45		−
Capital expenditures	106,003		6.6%		117,106		7.7%	11,103		10.5%
Depreciation charge of property, plant	62,413		3.9%		73,811		4.8%	11,398		18.3%
and equipment
R&D expenses		79,241		5.0%		75,457		4.9%	-3,784		-4.8%
Average		US$		109 yen		106 yen
exchange rate		Euro		121 yen		124 yen
(Reference) Foreign currency fluctuation effect on sales revenue and profit before income taxes for the year ended March 31, 2021
compared with the previous fiscal year.	Sales revenue: Approx. -9 billion yen (No significant effect on profit)

2	© KYOCERA Corporation

Sales Revenue by Reporting Segment for the Year Ended March 31, 2021

(Unit: Yen in millions)

					For the year ended March 31,	Change
					2020			2021
				Amount		% of sales		Amount		% of sales	Amount	%
					revenue			revenue
			Industrial & Automotive Components Group		341,093		21.3%		359,044		23.5%	17,951	5.3%
			Semiconductor Components Group		247,228		15.5%		263,595		17.3%	16,367	6.6%
			Electronic Devices Group		324,113		20.3%		305,170		20.0%	-18,943	-5.8%
		Total Components Business		912,434		57.1%		927,809		60.8%	15,375	1.7%
			Communications Group	※ 270,818		17.0%		232,739		15.2%	-38,079	-14.1%
			Document Solutions Group		359,915		22.5%		316,226		20.7%	-43,689	-12.1%
									63,898		4.2%
			Life & Environment Group	※	73,747		4.6%			-9,849	-13.4%
		Total Equipment & Systems Business		704,480		44.1%		612,863		40.1%	-91,617	-13.0%
			Others		16,737		1.0%		18,169		1.2%	1,432	8.6%
			Adjustments and eliminations	※	-34,598		-2.2%		-31,944		-2.1%	2,654	−
		Sales revenue	1,599,053		100.0%		1,526,897		100.0%	-72,156	-4.5%

※On April 1, 2020, a domestic subsidiary, Kyocera Communication Systems Co., Ltd., which is included in "Communications Group," absorbed and merged with a domestic subsidiary Kyocera Solar Corporation, which was included in "Life & Environment Group."

As a result, "For the year ended March 31, 2020" in the above table is presented in the reporting segment after the merger.

3	© KYOCERA Corporation

Business Profit by Reporting Segment for the Year Ended March 31, 2021

(Unit: Yen in millions)

				For the year ended March 31,		Change
				2020			2021
			Amount		% to sales		Amount		% to sales	Amount	%
				revenue			revenue
		Industrial & Automotive Components Group		15,813		4.6%		18,142		5.1%	2,329	14.7%
		Semiconductor Components Group		30,511		12.3%		28,260		10.7%	-2,251	-7.4%
		Electronic Devices Group		31,744		9.8%		25,268		8.3%	-6,476	-20.4%
	Total Components Business		78,068		8.6%		71,670		7.7%	-6,398	-8.2%
		Communications Group	※	11,259		4.2%		14,597		6.3%	3,338	29.6%
		Document Solutions Group		34,489		9.6%		28,759		9.1%	-5,730	-16.6%
		Life & Environment Group	※ -10,965		−		-23,952		−	-12,987	−
	Total Equipment & Systems Business		34,783		4.9%		19,404		3.2%	-15,379	-44.2%
		Others		-4,484		−		-3,102		−	1,382	−
Total business profit		108,367		6.8%		87,972		5.8%	-20,395	-18.8%
Corporate and others	※	40,459		−		29,587		−	-10,872	-26.9%
Profit before income taxes		148,826		9.3%		117,559		7.7%	-31,267	-21.0%

※On April 1, 2020, a domestic subsidiary, Kyocera Communication Systems Co., Ltd., which is included in "Communications Group," absorbed and merged with a domestic subsidiary Kyocera Solar Corporation, which was included in "Life & Environment Group."

As a result, "For the year ended March 31, 2020" in the above table is presented in the reporting segment after the merger.

4	© KYOCERA Corporation

Summary of Financial Results for the Year Ended March 31, 2021

Despite the impact of COVID-19 infection, active investments for growth centered on the Components Business were continued

Components

Business (Increase in sales revenue and decrease in profits)

Equipment & Systems Business (Decreases in sales revenue and profits)

1. Demand was sluggish until Q1 but has been on a recovery track since Q2
2. Increased demand for semiconductor and 5G-related components
3. • Fine ceramic components for semiconductor processing equipment (Industrial & Automotive Components Group)
   • Ceramic packages for use in 5G capable devices (Semiconductor Components Group)
4. Increase in depreciation expenses of approximately 10 billion yen

Continued active investments in anticipation of an increase in medium-term demand

1. Demand decreased for mobile phone handsets and office equipment
2. An impairment loss of 11.5 billion yen was recorded in the smart energy business
3. Due to cost reduction efforts, profits increased in the Communications Group and profit margin maintained at virtually the same level as in the previous fiscal year in the Document Solutions Group

5	© KYOCERA Corporation

Financial Results for FY3/2021 by Reporting Segment (1)

Industrial & Automotive Components Group

Semiconductor Components Group

Sales revenue

Business profit

Business profit ratio (%)

500.0

Sales revenue

Business profit

Business profit ratio (%)

500.0

（Unit : Yen in billions）

400.0

（Unit : Yen in billions）

341.1359.0

4.6%5.1%

15.818.1

0.0

FY3/2020FY3/2021

＜Major reasons for change＞

+ Increased sales in pneumatic/power tools due to the contribution of M&A and components for semiconductor processing equipment

+ Despite the impact of higher depreciation charge, business profit rose due to increased sales and cost reduction efforts

	300.0	247.2		263.6
		12.3%
	200.0			10.7%
	30.5
	100.0	28.3
0.0	0.0						0.0
FY3/2020
		FY3/2021

＜Major reasons for change＞

+ Demand for ceramic packages for use in 5G capable smartphones increased

－ Business profit decreased due to increase in costs particularly in depreciation charge

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Financial Results for FY3/2021 by Reporting Segment (2)

Electronic Devices Group

500

Sales revenue		Business profit		Business profit ratio (%)

（Unit : Yen in billions）

324.1305.2

9.8%	8.3%

31.7	※	25.3
0				0
	FY3/2020		FY3/2021

＜Major reasons for change＞

+ Demand increased for ceramic capacitors, crystal devices and SAW devices for 5G capable smartphones

－ Sales of AVX Corporation and of printing devices decreased due to lower demand in industrial markets

－ Profits decreased due to a decline in sales revenue and an increase in depreciation charge

Communications Group

500.0

	Sales revenue			Business profit		Business profit ratio (%)
450.0
400.0								（Unit : Yen in billions）
350.0	270.8
300.0					232.7
250.0
						6.3%
200.0
		4.2%
150.0
						14.6
100.0			11.3
50.0
0.0									0.0
	FY3/2020
			FY3/2021

＜Major reasons for change＞

－ Decrease in the number of mobile phone handsets sold in the telecommunications equipment business

－ Decreased sales of the engineering business in the information system and telecommunication services business

+ Business profit increased as a result of cost reduction efforts

• Costs related to litigation of approximately 10 billion yen was recorded

at AVX Corporation

7

© KYOCERA Corporation

Financial Results for FY3/2021 by Reporting Segment (3)

Document Solutions Group

Life & Environment Group

	500	Sales revenue		Business profit		Business profit ratio (%)

170.0	Sales revenue		Business profit		Business profit ratio (%)

359.9

（Unit : Yen in billions）

（Unit : Yen in billions）

120.0

316.2

9.6%9.1%

34.528.8

0		0

FY3/2020FY3/2021

＜Major reasons for change＞

－ Although demand has been in a recovery trend after bottoming out in Q1 FY3/2021, it has not reached the level of FY3/2020 and demand for printers, MFPs and consumables decreased

+ Business profit margin remained at virtually the same level thanks to productivity improvements and cost reduction efforts

70.0	73.7	63.9
20.0
-30.0	-11.0	-24.0	-30
	FY3/2020	FY3/2021

＜Major reasons for change＞

－ Decreased sales of solar power generation systems in the smart energy business

• Recorded an impairment loss of 11.5 billion yen relating to machinery, equipment and goodwill as well as intangible assets in the smart energy business in FY3/2021

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2. Change of Business Segment

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Change of Business Segment

FY3/2018 to FY3/2021

Business segment	Major businesses and subsidiaries
			Fine Ceramic Components
Industrial & Automotive	Automotive Components
Liquid Crystal Displays
Components Group
Industrial Tools
			Optical Components
Semiconductor	Ceramic Packages
Components Group	Organic Packages and Boards
Electronic Devices Group	Electronic Components
AVX Corporation
			Printing Devices
			Telecommunications Equipment
Communications Group	Information systems and
			Telecommunication Services (KCCS※1)

Document Solutions Group	Information Equipment (KDC※2)
		Smart Energy Business
Life & Environment Group	Medical Devices
		Jewelry and Applied Ceramic Related Products
※1	Kyocera Communication Systems Co., Ltd.
※2	Kyocera Document Solutions Inc.

FY3/2022 onward

	Business segment	Major businesses and subsidiaries
		Industrial & Automotive Components Unit

Fine Ceramic Components

Automotive Components

Optical Components

Core Components Semiconductor Components Unit

BusinessCeramic Packages

Organic Packages and Boards

	Others
		Medical Devices
		Jewelry and Applied Ceramic Related Products
Electronic Components	Electronic Components
Business	AVX Corporation

Industrial Tools Unit

Industrial Tools

Document Solutions Unit

Information Equipment (KDC※2)

Communications Unit

Solutions BusinessTelecommunications Equipment

Information systems and

Telecommunication Services (KCCS※1)

Others

Liquid Crystal Displays

Printing Devices

SmartEnergy Business

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Aim of reorganization of business structure and priority measures for new business segments

1. Aim of reorganization of business structure

Strategic planning and execution	Greater mobility of	Enhance efficiency and
human resources and	promote effective use of
across business divisions
vitalization of organizations	management resources

Implement speedier and dynamic management decisions that transcend the existing organization framework by delegating substantial authority of top management to the directors in charge of each segment

2. Priority measures for each business segment

Core Components Business

Electronic Components Business

Solutions Business

Realize sales growth and improvements in profitability by focusing on growth fields such as 5G and semiconductors and strengthening technology development

Expand sales and profits by enhancing sales capabilities through the consolidation of global sales forces and maximizing synergy through a combination of manufacture and development resources

Establish New Brand

Build a new business model by utilizing communication technologies and software

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

11	© KYOCERA Corporation

3. Financial Forecasts for the Year Ending March 31, 2022

12	© KYOCERA Corporation

Sales revenue: Approx. -6billion yen / (No significant effect on profit)

Financial Forecasts for the Year Ending March 31, 2022

(Unit: Yen in millions)

			Year ended March 31,		Year ending March 31,		Change
			2021			2022
			Amount		% to sales		Amount		% to sales		Amount		%
				revenue			revenue
Sales revenue		1,526,897		100.0%		1,730,000		100.0%		203,103		13.3%
Operating profit	70,644		4.6%		117,000		6.8%		46,356		65.6%
Profit before income taxes	117,559		7.7%		160,000		9.2%		42,441		36.1%
Profit attributable to owners of the parent	90,214		5.9%		113,000		6.5%		22,786		25.3%
EPS (Basic-yen)		248.91		-		311.78		-		62.87		-
Capital expenditures	117,106		7.7%		170,000		9.8%		52,894		45.2%
Depreciation charge of property, plant	73,811		4.8%		100,000		5.8%		26,189		35.5%
and equipment
R&D expenses		75,457		4.9%		90,000		5.2%		14,543		19.3%
Average		US$	106 yen		105 yen
exchange rate		Euro	124 yen		125 yen

(Reference) Estimated foreign currency fluctuation effect on sales revenue and profit before income taxes for the year ending March 31, 2022 compared with the previous fiscal year.

Note: Forecast of EPS (Basic-yen) is calculated using the average number of shares outstanding for the year ended March 31, 2021. Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

13	© KYOCERA Corporation

Summary of Financial Forecast for the Year Ending March 31, 2022

(1) Planning for record-high sales revenue

(2) Continue active business investment

• Increase in demand for components in main markets
  ・Components for 5G and semiconductor markets ・ADAS-related components
• • Trend of Sales Revenue (Yen in billions) >

Record-high

• • Capital investment for further increasing production of strategic products
  • Accelerate development of new businesses
• Trend of Capital Expenditures and R&D Expenses (Yen in billions) >
  Capital expenditures R&D expenses

Record-high

1,623.7	1,599.1		1,730.0
1,526.9
FY3/2019	FY3/2020	FY3/2021	FY3/2022
			(Forecast)

			260.0
186.9	185.2	192.6	90.0
69.9	79.2	75.5
117.0	106.0	117.1	170.0
FY3/2019	FY3/2020	FY3/2021	FY3/2022
			(Forecast)

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

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Main Business Investments in FY3/2022

Capital Expenditures: Increase production capacity of strategic products

Expand production capacity mainly for 5G related components

Ceramic packages

Organic packages

Ceramic Capacitors

Kagoshima Sendai Plant

Kyoto Ayabe Plant

Kagoshima Kokubu Plant

R&D: Accelerate new business and new product development

Strengthen commercialization of development themes and new product development for medium- to-long-term growth

GaN(Gallium Nitride)	AI Collaborative Robot	5G Smart Routers	Local 5G System	Inkjet Printer
Systems Business	System Business

Organize as a new business	Full-scale deployment	Promote verification	Promote development
department from FY3/2022	in May 2021	testing toward launch	for new product

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

15	© KYOCERA Corporation

Sales Revenue Forecast by Reporting Segment for the Year Ending March 31, 2022

(Unit: Yen in millions)

			Year ended		Year ending		Change
			March 31, 2021		March 31, 2022
			Amount	% of sales		Amount	% of sales		Amount	%
			revenue		revenue
	Core Components Business	424,669	27.8%		455,000	26.3%		30,331	7.1%
		Industrial & Automotive Components Unit	135,884	8.9%		145,000	8.4%		9,116	6.7%
		Semiconductor Components Unit	263,595	17.3%		280,000	16.2%		16,405	6.2%
		Others	25,190	1.6%		30,000	1.7%		4,810	19.1%
	Electronic Components Business	273,002	17.9%		320,000	18.5%		46,998	17.2%
	Solutions Business	835,213	54.7%		957,000	55.3%		121,787	14.6%
		Industrial Tools Unit	193,066	12.6%		209,000	12.1%		15,934	8.3%
		Document Solutions Unit	316,226	20.7%		370,000	21.4%		53,774	17.0%
		Communications Unit	232,739	15.2%		270,000	15.6%		37,261	16.0%
		Others	93,182	6.2%		108,000	6.2%		14,818	15.9%
		Others	18,169	1.2%		28,000	1.6%		9,831	54.1%
		Adjustments and eliminations	-24,156	-1.6%		-30,000	-1.7%		-5,844	−
	Sales revenue	1,526,897	100.0%		1,730,000	100.0%		203,103	13.3%

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

16	© KYOCERA Corporation

Business Profit (Loss) Forecast by Reporting Segment for the Year Ending March 31, 2022

(Unit: Yen in millions)

			Year ended		Year ending		Change
			March 31, 2021		March 31, 2022
			Amount	% to sales		Amount	% to sales		Amount	%
			revenue		revenue
	Core Components Business	30,549	7.2%		41,000	9.0%		10,451	34.2%
		Industrial & Automotive Components Unit	4,241	3.1%		12,000	8.3%		7,759	183.0%
		Semiconductor Components Unit	28,260	10.7%		29,000	10.4%		740	2.6%
		Others	-1,952	－		0	0.0%		1,952	−
	Electronic Components Business	23,000	8.4%		40,000	12.5%		17,000	73.9%
	Solutions Business	37,506	4.5%		74,000	7.7%		36,494	97.3%
		Industrial Tools Unit	15,721	8.1%		22,000	10.5%		6,279	39.9%
		Document Solutions Unit	28,759	9.1%		42,000	11.4%		13,241	46.0%
		Communications Unit	14,597	6.3%		12,000	4.4%		-2,597	-17.8%
		Others	-21,571	−		-2,000	−		19,571	−
		Others	-3,102	−		-15,000	−		-11,898	−
Total business profit	87,953	5.8%		140,000	8.1%		52,047	59.2%
Corporate and others	29,606	−		20,000	−		-9,606	-32.4%
Profit before income taxes	117,559	7.7%		160,000	9.2%		42,441	36.1%

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

17	© KYOCERA Corporation

Financial Forecasts for FY3/2022 by Reporting Segment

(1) Core Components Business

Sales revenue		Business profit

Industrial & Automotive	（Unit : Yen in billions）
Components Unit

Business profit ratio (%) （Unit : Yen in billions）

Semiconductor	(+7%)
Components Unit
Others

7.2%

9.0%

FY3/2021 FY3/2022 (Forecast)

Industrial & Automotive Components Unit

• Increase in demand for fine ceramic components for semiconductor processing equipment and automotive cameras along with the advance of ADAS

(+34%)

41.0

12.0

29.0

0

FY3/2021 カFY3/2022テゴリ 2 (Forecast)

• Increase in profits due to higher sales revenue and cost reduction efforts such as a doubling of productivity in the Industrial & Automotive Components Unit

Semiconductor Components Unit

• Increase in demand for ceramic packages and organic packages for 5G capable smartphones and communication infrastructure

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

18	© KYOCERA Corporation

Financial Forecasts for FY3/2022 by Reporting Segment

(2) Electronic Components Business

Sales revenue

（Unit : Yen in billions）

(+17%)

FY3/2021 FY3/2022 (Forecast)

Business profit

Business profit ratio (%) （Unit : Yen in billions）

12.5%

8.4%

(+74%) 40.0

FY3/2021FY3/2022 カテゴリ 2 (Forecast)

• Sales increase at AVX Corporation along with a recovery of demand in industrial markets and the automotive- related market
• Increase in demand for 5G-related and in-vehicle electronic components
• Sales increase due to further collaboration between Kyocera and AVX Corporation

• Increase in profits due to a rise in sales of high-profit products and cost reduction efforts

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

19	© KYOCERA Corporation

Financial Forecasts for FY3/2022 by Reporting Segment

(3) Solutions Business

				Sales revenue
Industrial Tools Unit		（Unit : Yen in billions）
Document Solutions Unit	(+15%)
Communications Unit
Others

FY3/2021 FY3/2022 (Forecast)

Document Solutions Unit

• Recovery in demand for printers, MFPs and consumables and an increase in sales of the solution business and the inkjet printing business

Business profit

Business profit ratio (%) （Unit : Yen in billions）

7.7%

4.5%

(+97%) 74.0

22.0

42.0

12.0

※-2.0

FY3/2021FY3/2022 (Forecast)

• Increase in profits due to higher sales revenue and cost reduction efforts such as review of production system in each business

Communications Unit

• Increase in sales of communications equipment for companies and 5G capable devices

※An impairment loss of 11.5 billion yen was recorded in the smart energy business

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

20	© KYOCERA Corporation

4. Enhance Corporate Value

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Initiatives for Strengthening Corporate Governance

1. Strengthening the supervisory functions of the Board of Directors

[Current]

Internal Directors 12 persons

Outside Directors 3 persons

① ② ③

① CPA ② Professor of Graduate School ③ Attorney-at-law

[Scheduled proposal for submission at the Ordinary General Meeting of Shareholders in June 2021]

Internal Directors 6 persons

Outside Directors 3 persons

② ③ ④

• Corporate Executive

Total 15 persons	Total 9 persons
	Toward a 1/3 ratio of Outside Directors

2. Appointment of Independent Outside Director

New Candidate for Director

(Scheduled proposal for submission at the Ordinary General Meeting of Shareholders in June 2021)

Name	New Title
Eiji Kakiuchi	Outside Director
[Representative Director, Chairman, Member of the Board of SCREEN Holdings Co., Ltd.]

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

22	© KYOCERA Corporation

Aiming for Sustainable Growth in Corporate Value

Management indicators

4.5%

.0

1,623.7

8.7%

Sales revenue (billion yen)

4.6%

1,599.1 1,526.9

9.3%

Profit before income taxes (billion yen) Profit margin (%) ROE (%)

Toward the medium-term

3.6%	target of 8% or higher
	2,000.0
		700
	1,730.0
		600
	Quickly achieve sales	15.0%	500
7.7%	9.2% of 2 trillion yen toward	300.0	400
	further growth	300

140.6	148.8	117.6	160.0				200
.0										100
										0
	FY3/2019FY3/2019	FY3/2020FY3/2020	FY3/2021FY3/2021	FY3/2022FY3/2022		列1	(Target)(Target)
						(Forecast)
Management	・ Set ROE target			Consider initiatives for further
・ Announce the appropriate		strengthening our management base
measures
implementation of share buybacks	・ Implement organizational restructuring
		・ Raise the dividend payout ratio	・ Strengthen the supervisory functions of the Board of Directors
・Establish nomination	・ Appoint female officers	(aim for a 1/3 ratio of outside directors) ※
・ Appoint corporate manager as an Outside Director ※
and remuneration	・ Introduce restricted stock
committees	compensation system		※ Scheduled proposal for submission at the Ordinary General Meeting of Shareholders in June 2021
	FY3/2019	FY3/2020	FY3/2021	FY3/2022

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

23	© KYOCERA Corporation

Shareholder Return

<Trends in cash dividends per share and the payout ratio>

Dividend Policy (Based on consolidated payout ratio)

Aim to further improve

Around 40% from FY3/2017

55.8%

49.1%

38.9%

			Commemoration
			dividend of 20 yen 140 yen
		120 yen	20 yen
110 yen
60 yen	60 yen
	60 yen

50 yen	60 yen	60 yen

Around 50% from FY3/2020

53.8% 56.2% 51.3%

Increase of 20
yen from the
160 yen latest forecast	160 yen
140 yen

80 yen	120 yen

80 yen

80 yen

60 yen

shareholder return through improved business performance

Consolidated Payout Ratio

Year-end Dividend per share

Interim Dividend per share

Latest forecast of

annual dividend per share for FY3/2021

FY3/2017	FY3/2018	FY3/2019	FY3/2020	FY3/2021	FY3/2022
			IFRS	(Plan)	(Forecast)

Please refer to "Cautionary Statements with respect to Forward-Looking Statements" on the last page.

24	© KYOCERA Corporation

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.

25	© KYOCERA Corporation

© KYOCERA Corporation