Kyocera Corporation Business Presentation
February 2008 MAKOTO KAWAMURA
President and Representative Director
Kyocera Corporation Business Presentation MAKOTO KAWAMURA President - - PowerPoint PPT Presentation
Kyocera Corporation Business Presentation MAKOTO KAWAMURA President and Representative Director February 2008 Todays Presentation 1. Consolidated Financial Forecast (Year Ending March 31, 2008) 1. Consolidated Financial Forecast (Year
President and Representative Director
Makoto Kawamura
President and Representative Director
Tatsumi Maeda
Senior Managing Executive Officer General Manager of Corporate Solar Energy Group
1
Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), 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: general economic conditions in our markets, which are primarily Japan, North America, Europe, and Asia, particularly including China; unexpected changes in economic, political and legal conditions in China; our ability to develop, launch and produce innovative products, including meeting quality and delivery standards, and our ability to otherwise meet the advancing technical requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components; manufacturing delays or defects resulting from outsourcing or internal manufacturing processes which may adversely affect
and economic instability, difficulties in collection of accounts receivable, decrease in cost competitiveness of
between the yen and the U.S. dollar and euro, respectively, in which we make significant sales; inability to secure skilled employees, particularly engineering and technical personnel; insufficient protection of our trade secrets and patents; holding licenses to continue to manufacture and sell certain of its products, the expense of which may adversely affects its results of operations; future initiatives and in-process research and development may not produce the desired results; events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases; the occurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business facilities are located; and fluctuations in the value of, and impairment losses on, securities and other assets held by us, and changes in accounting principles. Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements
publicly update any forward-looking statements included in this document.
2
% to net sales Amount
Year ending March 31, 2008
% to net sales
% to net sales Amount
R&D expenses
Depreciation
Capital expenditures
EPS (diluted - yen)
Net income
Amount
Year ended March 31,2007
Revised forecast (January 2008) Previous forecast (October 2007)
Pre-tax income
Profit from operations
Net sales
% change
3
Euro:156 ¥2.5 billion ¥-3.7 billion US$:115 Euro:161 Euro:150 ¥15.7 billion ¥39.6 billion US$:117 US$:115 ¥7.2 billion ¥5.7 billion
pre-tax income net sales Foreign currency fluctuation effect on: Average exchange rate (yen) Please refer to accompanying note on page 2. (Unit: Yen in millions)
4
(%)
(Forecast)
Commencing in FY 3/08, the "Optical Equipment Group," previously a separate reporting segment, has been reclassified and included in "Others." Please refer to accompanying note on page 2 and 35.
14.6 13.4 16.1 4.3 5.2 6.6 8.9 10.0 12.2 14.2 8.6 12.9
Components Business Equipment Business Kyocera Group
・ Deceleration trend in some industries, such as a semiconductor production equipment industry, will continue ・ Demand for passive components will recover from February or March 2008 ・ Revision of forecast for average exchange rates
(increase of approx. ¥ ¥10.0 billion compared with FY07) 10.0 billion compared with FY07)
・ Effect of change in accounting method related to depreciation will be ¥9.5 billion (forecast) for the full year
・ Significant increase in sales and profit for 2H of FY08 in solar energy business is expected compared with 1H FY08 ・ Organic package business is forecast to achieve profitability in FY08 ・ Write-down of goodwill in the cutting tool business is expected to have a ¥ 2 billion negative impact
(4.0% increase in sales, 8.3% decrease in operating profit compared with FY07)
¥155 ¥107 FY08Q4 (E) ¥156 Euro ¥120 US$ FY07Q4 rate
5
Please refer to accompanying note on page 2.
6
(3.8% decrease in sales, 25.5% increase in operating profit compared with FY07)
Please refer to accompanying note on page 2.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(%)
7
(Forecast)
Please refer to accompanying note on page 2.
8
(3.8% decrease in sales, 25.5% increase in operating profit compared with FY07)
Please refer to accompanying note on page 2.
9
Develop new products and technologies
Practice "Customer-first" Principle Promote Global Management Establish a highly Profitable Structure
Seek synergies within group companies
Please refer to accompanying note on page 2.
10
Information Information
Color Printers / MFPs Color Printers / MFPs Handsets / Base Stations Handsets / Base Stations
Automotive Automotive
Intelligent Transport System (ITS) Hybrid Vehicles related products Intelligent Transport System (ITS) Hybrid Vehicles related products
Solar Energy / Fuel Cells Solar Energy / Fuel Cells
Please refer to accompanying note on page 2.
11
・ Fear of slowing individual consumption in the US and Europe ・ Fear of decreasing infrastructure investment by businesses (IT infrastructure) ・ Appreciation of yen against both US dollar and Euro
・ Demand from Beijing Olympics ・ Solid demand in the emerging countries ・ Increasing number of components per product due to digitalization of equipment
% increase from CY2007
Digital TVs
PCs
Mobile phone handsets Forecast -CY2008-
(Unit: Millions)
Sales unit forecast -CY2008-
Please refer to accompanying note on page 2.
12 ・ Expand solar energy business (Sales target: 100.0 billion yen, ASAP) ・ Improve profit for new Telecommunications Equipment Group after acquisition of SANYO’s mobile phone related business (currently setting post-acquisition business targets) ・ Expand product line-up for Information Equipment Group (sales target: ¥300.0 billion, ASAP) ・ Expand sales in organic package business
Please refer to accompanying note on page 2.
13
Operating profit (%)
Fine Ceramic Parts
Semiconductor Parts Information Equipment Electronic Device
Documented in accordance with financial forecast for FY08
(Unit: Yen in billions)
Operating profit ratio used above refers to Kyocera Group’s consolidated operating income ratio of 11.5% for FY08 (forecast) as an average
Please refer to accompanying note on page 2.
14
Please refer to accompanying note on page 2.
15
Please refer to accompanying note on page 2.
60 70 20 40
Newly Launch models that contribute to branding
KYOCERA Gain wide range of users aged late 20s to 80s, mainly for middle to low end mobile phone handsets 16
provide middle to high end mobile phone handsets mainly for users aged 20s to 30s
Please refer to accompanying note on page 2.
KDASH Ⅲ KDASH
BPSK ~ 64QAM
・ Interference ・ IP Interface ・ Macro Cell ・ High Capacity
OFDMA 3.9G
・ AAS/MIMO ・ MAX Speed 20Mbps
KDASH Ⅱ Towards launching of service on February 28, 2009 (Expectation)
17
Please refer to accompanying note on page 2.
(Sales channels)
Kyocera Telecommunications Research Kyocera Wireless (India)
Kitami plant
(Production system)
Osaka and Gifu
Flextronics Tanakura Plant Tianjin Plant Malaysian plant
(Distribution)
Latin America North American carriers
(Distribution)
Yokohama
Yokohama
North America Oceania Latin American carriers
(Sales channel)
Please refer to accompanying note on page 2.
18
19
Please refer to accompanying note on page 2.
① Product road map collaboration ③ Execution of proposal oriented product plannings ⑤ Examine the needs of future support for carriers of wireless broadband business
Encourage replacement purchase from past hit models (W44K, etc) Verify continuous replacement purchase within SANYO models, examine effective strategies Development of fascinating and attractive products for users and carriers Considering new business for starting up towards FY2010 (ex. W-CDMA)
20 ② Encourage replacement purchase within own brands in domestic market ④ Collaboration of development resources
Clarify branding policy Distinguish product line-ups between KYOCERA and SANYO
Please refer to accompanying note on page 2.
CSI + Federal Tax Credit
2006~ 2004~ 2005~
AK
HI
MA WA OR
UT MT ID
WY
ND NE KS IA MO KY WV SD
NV
AR
TX FL
OK
MN WI
IN OH MS AL GA SC NC TN NH VT
NJ
CT RI MD DE IL MI DC
AZ
NM
CA ME
VA
NY
LA
PA CO 400 KW
id Parity
AK AK
HI
MA WA OR
UT MT ID
WY
ND NE KS IA MO KY WV SD
NV
AR
TX FL
OK
MN WI
IN OH MS AL GA SC NC TN NH VT
NJ
CT RI MD DE IL MI DC
AZ
NM
CA ME
VA
NY
LA
PA CO 400 KW
id Parity
California
Feed-in tariff
Calculated by Kyocera Corp. Ignores possible increases in interest rates and energy costs
Feed-in tariff Feed-in tariff
Germany
* RPS= Renewable Portfolio Standard
RPS* 2002~ 2005~
Please refer to accompanying note on page 2.
21
0.3
GW
0.8
GW 0.4 GW
1,3
GW
2,9
GW
1 2 3 4
3.6
GW
1.4
GW
3.1
GW
0.9
GW
2 4 6 8 10 12 14 EU
2010(E) 2016(E) 2010(E) 2016(E)
2.9
GW
1.3
GW
0.4
GW
0.5
GW
0.14
GW
1 2 3 4 USA
0.1
GW
0.5
GW 0.2 GW
0.5
GW
1.1 GW
1 2 Asia
Market outlook with incentive by governmental policy Conservative outlook
World market size
Estimate by Kyocera Corp.
GW GW GW
Left: Outlook with incentive by governmental policy Right: Conservative outlook
approx.14× approx.11× approx.20×
12.0
GW
2006
2006
2006 2010(E) 2016(E) 2006
GW
(E) (E)
2010(E) 2016(E)
CY CY CY CY
CY
Please refer to accompanying note on page 2.
22
50 100 150 200 01 02 03 04 05 06 07 08 09 10 11 12 1
3 14 15 16 CY Kton 13
Calculation by Kyocera Corp.
Semiconductors CY2016
New material manufacturers Existing materials manufactures
Forecast Please refer to accompanying note on page 2.
23
★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★★ ★ ★ ★
SolarWorld
★ ★ ★ ★
★ ★ ★
★ ★ ★ ★
★ ★ ★ ★ ★ ★
★ ★
★
Ersol
★ ★ ★ ★ ★ ★
★ ★
★
★ ★ ★ ★
Solon SolarWorld
★ ★ ★ ★
★ ★ ★
★ ★ ★ ★
★ ★ ★ ★ ★ ★
★ ★
★
Ersol
★ ★ ★ ★ ★ ★
★ ★
★
★ ★ ★ ★
Solon
E-ton ●
★ ★★ ★ ★★ ★ ★★ ★ ★★ ★★ ★ ★ ★
More than 60
More than 20 More than 20
Please refer to accompanying note on page 2.
24
★
★ ★ ★ ★ ★ ★ ★ ★
Yingli Trina Suntech LDK
★ ★ ★ ★
More than 20
*EEG= Erneuerbare-Energien-Gesetz
25
Please refer to accompanying note on page 2.
Casting Cutting Wafer slicing Solar cells Solar modules
Improvement
efficiencies
Improvement of crystalline quality Impurity contamination measures Optimization of slicing condition Thinner wafers Improvement wires awing process Passivation Reactive Ion Etching (RIE) technology High sheet resistance emitters Improvement
Optimization of Module materials Optimization of Module fabrication Process
26
Please refer to accompanying note on page 2.
Back
Cell Current: 3BB
Back Contact
3.86W/cell
4.50W/cell 3.67W/cell 4.06W/cell 4.26W/cell
Lager Cell (156□)
Higher efficiencies for Back Contact
improvement from current power output 2BB
Conversion efficiencies Power
Technologies
100% achievement
Productivity improvement of approx. 40% compared to FY05
27
Please refer to accompanying note on page 2.
Annual average temperature map
Snow resistance Snow resistance High temperature resistance High temperature resistance Design oriented Design oriented Building unifiable Compact style with self power source Compact style with self power source Compact style with self power source Snow resistance / weighting durability High temperature resistance / heat durability Design oriented / black back sheets Building unifiable / frame-less Compact style with self power source / small size
Black Back sheets Compact style with self power source
Frame-less High temperature resistance
28
Please refer to accompanying note on page 2.
(1.0=Highest Possible, 6.0=Lowest Possible)
29
Please refer to accompanying note on page 2.
Czech Republic Mexico Tianjin Germany Brazil Australia Singapore Beijing
ASIA USA EUROPE
Japan Kyocera
Czech Republic China Japan / Ise Japan / Yokaichi Mexico Germany Singapore China Japan USA Brazil Australia
(Planned)
FY07
FY11
FY07
FY11
FY07
FY11
FY07
FY11
Ise Yokaichi (Cell) USA
(Planned) (Planned)
FY07
FY11
(Planned)
30
Please refer to accompanying note on page 2.
100 200 300 400 500 600
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
EEG in Germany FY MW Amendment to EEG in Germany California Solar Initiatives Yokaichi, Japan new plant (Possible production volume:500MW) Czech Republic plant Residential subsidies in Japan (until FY06)
Mexico plant Tianjin, China plant
Plan
31
Please refer to accompanying note on page 2.
Taichun Science Park Taiwan 70kW School - Timor China 44kW Alaska Pipeline - USA 16kW
Soccer Stadium Switzerland 1.35MW New Jersey Commercial 1MW
Station Switzerland
32
Please refer to accompanying note on page 2.
【AEON mall, Hanyu: 100kW】
【AEON Kagoshima: 140kW Total】
Roofs of parking lots 57.5kW Roof of bus stops 25.5kW
【Asahi Shokuhin (Kochi): 500kW】 33
Please refer to accompanying note on page 2.
① Installation of solar energy system (214 kW)
② Gas cogeneration system Generators (520 kWX2) ③ installation of air-conditioning equipment with ice-storage system
Let children intensify interests for environmental issues or technologies, and learn importance of natural resources on the earth. Total participants: approx. 3,500 from 50 schools 34
Please refer to accompanying note on page 2.
35