Kyocera Corporation Financial Presentation (Six Months ended - - PowerPoint PPT Presentation

October 29, 2010 Tetsuo Kuba

President and Representative Director

Kyocera Corporation Financial Presentation

(Six Months ended September 30, 2010)

Today’s Presentation

１．Financial Results of H1 FY3/2011 １． １．Financial Results of H1 FY3/2011 Financial Results of H1 FY3/2011

＊Printed by Kyocera Mita’s ECOSYS printer

３．Financial Forecast for FY3/2011 ３． ３．Financial Forecast for FY3/2011 Financial Forecast for FY3/2011 ２．Financial Results of Q2 FY3/2011 ２． ２．Financial Results of Q2 FY3/2011 Financial Results of Q2 FY3/2011

１．Financial Results of H1 FY3/2011 １． １．Financial Results of H1 FY3/2011 Financial Results of H1 FY3/2011

609.9 53.3 9.7 62.0 1.8 8.7

Net income attributable to shareholders

• f Kyocera Corporation

2010 2009

－ 290.06 － 337.62 － 47.56

EPS attributable to shareholders

• f Kyocera Corporation (diluted-yen)
• 10.2
• 3.0

4.2 26.8 6.2 29.8

Depreciation R&D expenses Capital expenditures Pre-tax income Profit from operations Net sales

26.0 13.6 17.1 8.9 483.9

Amount

Six months ended September 30,

5.4 2.8 3.5 1.8 100.0

% of net sales

23.5 32.7 89.5 81.8 637.4

Amount

3.7 5.1 14.0 12.8 100.0

% of net sales

• 2.5

19.1 72.4 72.9 153.5

Amount

Change

• 9.8

141.0 421.9 823.0 31.7

%

Financial Results of H1 FY3/2011

－ Comparison with H1 FY3/2010 －

(Unit: Yen in billions)

€： ¥ 133

• Approx. ¥ -13.5 billion
• Approx. ¥ -45.0 billion

US$： ¥ 95 €: ¥ 114 US$： ¥ 89

• Approx. ¥ -14.0 billion
• Approx. ¥ -32.0 billion

pre-tax income net sales Foreign currency fluctuation effect on: (compared with the previous same period)

Average exchange rate (yen)

1

31.7 － 17.7 25.3 5.3 53.3 40.4 30.8 43.0 41.6 70.4

% Amount

Six months ended September 30, Change

100.0

• 2.0

11.9 39.5 23.0 16.5 50.6 19.5 13.8 12.9 4.4

% of total

483.9

• 9.9

57.8 190.9 111.2 79.7 245.1 94.5 66.9 62.2 21.5

Amount

2009

Adjustments and eliminations Others

2010

Reporting Segment

• 4.0
• 2.2
• 13.9

% of total Amount

153.5 10.3 48.4 5.8 42.6 98.9 29.1 28.7 25.9 15.2 18.3 117.0

Information Equipment Group Telecommunications Equipment Group Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group

19.2 122.3 54.0 344.0

Components Business: Total

19.4 123.6 15.0 95.6 13.8 88.1 5.8 36.7

Equipment Business: Total

37.5 239.3 100.0 637.4

Net sales

10.7 68.1

Sales by Reporting Segment

－ Six months ended September 30, 2010 －

(Unit: Yen in billions)

2

Operating Profit by Reporting Segment

－ Six months ended September 30, 2010 －

Others

% Amount

421.9 －

• 85.2

1.1 903.7 157.7 － 72.3 － － － 259.6 312.8 －

Change

Six months ended September 30,

Reporting Segment

% to net sales % to net sales

2010

• 1.3

－ 0.2 － 1.5

Equity in earnings of affiliates and unconsolidated subsidiaries

0.1 － 7.4 － 7.3

Corporate Operating Profit

2.8 6.8 4.6 3.1 1.8

• 0.9

－

• 0.8

－ 0.1

Adjustments and eliminations

74.4 13.0 82.6 1.7 8.2

Pre-tax income

Amount Amount

2009

72.4 15.4 6.0 9.4 56.1 21.9 11.3 14.0 8.9 3.5 0.4 7.5 － 2.3 0.3 6.5 7.2 － 14.0 6.8 12.3 1.6 17.9 18.0 16.4 20.9 14.5 89.5 16.3 14.4 1.9 61.7 22.2 15.7 18.5 5.3 17.1 0.9 8.4

• 7.5

5.6 0.3 4.4 4.5

• 3.6

Information Equipment Group Telecommunications Equipment Group Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group Components Business: Total Equipment Business:Total

(Unit: Yen in billions)

3

Operating profit represents profit from operating activities.

Achieved increases in sales and profit in all reporting segments despite impact of yen appreciation

Summary of H1 FY3/2011 Results

－ Comparison with H1 FY3/2010 －

• Increased component demand for digital consumer equipment, industrial machinery and

automotive markets

• Increased demand for solar energy systems, spurred by subsidies policies worldwide
• Established a system for higher production to meet strong demand
• Improved operating profit ratio substantially to 17.9%

Substantially increased sales in the Telecommunications Equipment Group by augmenting mobile phone handset line-up Restored profitability by improved profitability in overseas mobile phone handset business Improved operating profit by ¥9.4 billion compared with H1 FY3/2010

• 1. Components Business: Expanded sales and profit due to favorable

business environment and enhanced production capacity

• 2. Equipment Business: Significantly improved sales and profit

in the Telecommunications Equipment Group

4

Sales: + ¥98.9 billion (+40.4%) Operating profit:+ ¥56.1 billion (Approx. 11x) Sales: + ¥48.4 billion (+25.3%) Operating profit: + ¥15.4 billion (Approx. 19x)

483.9 658.7 469.9 589.9

637.4

400 800

Sales (Unit:Yen in billions)

Sales Pre-tax income Pre-tax income ratio(%)

Pre-tax income (Unit: Yen in billions)

FY3/2009 FY3/2010

FY3/2011

Six-Month Business Trends

Both pre-tax income and income ratio improved beyond H1 FY3/2009

H1 H2 H2 H1

H1

150 100 50

5 74.0 17.1 43.7

89.5

• 18.0

7.4% 3.5%

14.0%

11.2%

• 3.8%

２．Financial Results of Q2 FY3/2011 ２． ２．Financial Results of Q2 FY3/2011 Financial Results of Q2 FY3/2011

7.3 2.2 9.9 32.1 9.5 29.9

Net income attributable to shareholders

• f Kyocera Corporation

－ 11.85 － 174.74 － 162.89

EPS attributable to shareholders of Kyocera Corporation (diluted-yen)

September 30, 2010 June 30, 2010

10.9 1.4 4.3 14.1 4.1 12.7

Depreciation R&D expenses Capital expenditures Pre-tax income Profit from operations Net sales

11.4 12.0 46.3 40.6 313.2

Amount

Three months ended

3.6 3.8 14.8 13.0 100.0

% of net sales

12.1 20.7 43.2 41.2 324.2

Amount

3.7 6.4 13.3 12.7 100.0

% of net sales

0.7 8.7

• 3.1

0.6 11.0

Amount

Change

6.1 72.5

• 6.8

1.4 3.5

%

Financial Results of Q2 FY3/2011

－ Comparison with Q1 FY3/2011 －

(Unit: Yen in billions)

6

€： ¥ 117 US$： ¥ 92 €: ¥ 111 US$： ¥ 86

• Approx. ¥ -3.5 billion
• Approx. ¥ -11.0 billion

pre-tax income net sales Foreign currency fluctuation effect on: (compared with Q1 FY3/2011)

Average exchange rate (yen)

3.5 － 8.6

• 5.8

0.1

• 11.2

9.2 7.5 13.2 5.9 12.8

% Amount

Three months ended Change

100.0

• 2.3

10.4 39.4 18.7 20.7 52.5 19.0 14.3 13.7 5.5

% of total

313.2

• 7.1

32.6 123.2 58.5 64.8 164.4 59.5 44.8 42.8 17.2

Amount

June 30, 2010

Adjustments and eliminations Others

September 30, 2010

Reporting Segment

0.3

• 2.1
• 6.8

% of total Amount

11.0 2.8

• 7.1
• 7.3

15.1 4.5 6.0 2.5 2.2 18.1 58.5

Information Equipment Group Telecommunications Equipment Group Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group

17.7 57.5 55.4 179.5

Components Business: Total

19.7 64.0 15.7 50.8 14.0 45.3 6.0 19.4

Equipment Business: Total

35.8 116.1 100.0 324.2

Net sales

10.9 35.4

Sales by Reporting Segment

－ Three months ended September 30, 2010 －

7

(Unit: Yen in billions)

8

Operating Profit by Reporting Segment

－ Three months ended September 30, 2010 －

Others

% Amount

• 6.8

－

• 90.6
• 73.9

2.9 47.4

• 46.6

61.8 － 18.7 34.7 11.1 5.4 28.9

Change

Three months ended

Reporting Segment

% to net sales % to net sales

September 30, 2010

• 0.2

－ － 0.2

Equity in earnings of affiliates and unconsolidated subsidiaries

• 4.4

－ 1.5 － 5.9

Corporate Operating Profit

0.9 7.8 2.8 5.7 1.9 0.2 －

• 0.3

－

• 0.5

Adjustments and eliminations

1.3 12.9 42.0 13.0 40.7

Pre-tax income

Amount Amount

June 30, 2010

• 3.1
• 4.9

3.4

• 8.3

5.3 3.3 0.9 0.5 0.7 14.8 8.6 9.4 7.9 17.2 15.9 16.6 21.0 13.5 13.3 4.9 15.2 － 18.7 19.9 16.3 20.9 15.4 43.2 5.7 8.9

• 3.2

33.5 12.8 8.3 9.5 3.0 46.3 10.6 5.5 5.1 28.2 9.5 7.4 9.0 2.3

Information Equipment Group Telecommunications Equipment Group Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group Components Business: Total Equipment Business: Total

(Unit: Yen in billions)

• 1. Increased sales and profit in Components Business:

Continued high demand

Summary of Q2 FY3/2011 Results

－ Comparison with Q1 FY3/2011 －

• Increased component sales for digital consumer equipment, industrial machinery and

automotive markets

• Increased sales in solar energy business in Japan and overseas
• Achieved over 15% operating profit ratio in every reporting segment in

Components Business, due to increased sales and enhanced productivity

• 2. Decreased sales and profit in the

Telecommunications Equipment Group

Cyclical off timing of new handset introductions worldwide Impact of yen appreciation Recorded additional loss from bad debts of approx. ¥0.7 billion relating to account receivables from WILLCOM, Inc.

9

３．Financial Forecast for FY3/2011 ３． ３．Financial Forecast for FY3/2011 Financial Forecast for FY3/2011

－ 22.1 4.8 60.0 5.0 60.0 3.5 37.9

Capital expenditure

108.99 353.68 － 572.15 － 463.16 － 218.47

EPS attributable to shareholders of Kyocera Corporation (diluted-yen)

－ 9.4 5.6 70.0 5.8 70.0 5.6 60.6

Depreciation

－ 10.1 4.8 60.0 5.0 60.0 4.6 49.9

R&D expenses

Previous forecast Previous year

% of net sales Amount Amount Amount

64.9 99.2 83.1 186.2

% of net sales Amount

Year ending March 31, 2011 (Forecast) 7.1 11.0 10.2 100.0

% of net sales

3.7 5.7 5.9 100.0

Amount

20.0 8.3 105.0 85.0 40.1

Net income attributable to shareholders of Kyocera Corporation

60.8 63.9 1,073.8 Year ended March 31, 2010 12.7 11.7 100.0 160.0 147.0 1,260.0

Revised Previous

28.0 132.0 Pre-tax income 25.0 122.0 Profit from operations 60.0 1,200.0 Net sales

Change from

Financial Forecast for the Year Ending March 31, 2011

(Unit: Yen in billions) Please refer to forward-looking statements on the final page.

Forecast for the year ending March 31, 2011 €: ¥ 112 €: ¥ 110 €： ¥ 131 US$： ¥ 85 US$： ¥ 88 US$： ¥ 93

• Approx. ¥ -23.0 billion
• Approx. ¥ -65.0 billion

Previous

• Approx. ¥ -13.5 billion
• Approx. ¥ -49.0 billion

Year ended March 31, 2010 Revised

• Approx. ¥ -30.0 billion
• Approx. ¥ -80.0 billion

pre-tax ncome net sales

Foreign currency fluctuation effect

• n:(compared with the

previous fiscal year)

Average exchange rate (yen)

10

Previous forecast Previous year

60.0

• 3.0

－

21.0

• 7.0

28.0 42.0 20.5

－

14.0 7.5

Amount Amount

Adjustments and eliminations

100.0

• 2.1

11.6 39.2 21.6 17.6 51.3 18.6 14.6 13.1 5.0

% of total

1,073.8

• 22.8

124.6 421.5 232.4 189.1 550.5 199.9 157.0 140.5 53.1

Amount

Year ended March 31, 2010

• 5.2
• 2.2
• 28.0
• 2.1
• 25.0

Year ending March 31, 2011 (Forecast)

100.0 11.8 36.9 20.2 16.7 53.4 18.1 16.8 13.2 5.3

% of total

1,200.0 142.0 443.0 243.0 200.0 640.0 217.0 201.0 158.0 64.0

Amount

Previous

3.6 18.7 236.0

Information Equipment Group

186.2 100.0 1,260.0

Net Sales Others Equipment business: Total

Components business: Total

17.4 11.3 142.0 42.5 36.8 464.0 38.9 18.1 228.0

Telecommunications Equipment Group

131.5 54.1 682.0 37.6 18.8 237.5

Electronic Device Group

44.0 16.0 201.0

Applied Ceramic Products Group

31.5 13.6 172.0

Semiconductor Parts Group

18.4 5.7 71.5

Fine Ceramic Parts Group

% of total Amount

Change from

Revised

Reporting Segment

Sales Forecast by Reporting Segment

－ Year ending March 31, 2011 －

(Unit: Yen in billions) Please refer to forward-looking statements on the final page.

11

Previous forecast Previous year

28.0 3.4 24.6 0.7 2.4 2.4

－

21.5 11.5 0.5 8.5 1.0

Amount Amount

Revised

10.4

－

7.5

－

4.1

－

• 2.9

Corporate and others

88.8 12.1 152.5 10.7 127.9 5.9 63.7

Operating profit

5.7 5.4 1.7 9.5

－

9.0 6.6 12.6 12.3

－

% of net sales

60.8 6.8 7.4 22.1

• 14.7

49.5 13.2 19.9 17.2

• 0.8

Amount

Year ended March 31, 2010

2.4 10.4 24.5 9.1 22.1

Information Equipment Group

99.2 12.7 160.0 11.0 132.0

Pre-tax income

Others Equipment business: Total

Components business: Total

1.7 6.0 8.5 5.5 7.8 23.1 6.6 30.5 6.3 28.1 20.7 2.6 6.0 3.0 6.0

Telecommunications Equipment Group

64.0 16.6 113.5 14.4 92.0 26.3 16.6 39.5 12.9 28.0

Electronic Device Group

9.6 14.7 29.5 14.4 29.0

Applied Ceramic Products Group

16.3 19.5 33.5 15.8 25.0

Semiconductor Parts Group

11.8 15.4 11.0 15.6 10.0

Fine Ceramic Parts Group

% of net sales Amount % of net sales Amount

Change from

Year ending March 31, 2011 (Forecast) Previous

Reporting Segment

Operating Profit Forecast by Reporting Segment

－ Year ending March 31, 2011 －

(Unit: Yen in billions) Please refer to forward-looking statements on the final page.

12

Operating profit represents profit from operating activities.

Factors behind Revisions to Forecasts for FY3/2011

• 1. Components Business:

More favorable business environment than previous forecast

Sales and operating profit increased significantly relative to previous forecast

• 2. Equipment Business:

Higher sales in the Telecommunications Equipment Group

Sales significantly exceeded previous forecast Improved profitability in the Information Equipment Group Compared with previous forecast: Sales up ¥42.0 billion and

• perating profit up ¥21.5 billion

Growing demand for sophisticated digital consumer equipment such as smartphones Recovery in production in industrial machinery and automotive markets

13

Compared with previous forecast: Sales up ¥21.0 billion and

• perating profit up ¥2.4 billion

Please refer to forward-looking statements on the final page.

31.5 34.8 21.5 36.7

70

• 3.6

2.8 5.3 5.7

16.3%

• 16.6%

8.9% 14.5%

• 40

120

Second Half Initiatives by Reporting Segment

Market Outlook Initiatives

Fine Ceramic Parts Group

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%)

Slowed component demand for digital consumer equipment Increase in demand for automotive parts for environmental-responsive engines in Europe Expand sales of parts for semiconductor fabrication equipment Increase sales of automotive parts for environmental-responsive engines, such as piezoelectric stacks and glow plugs Improve profitability by further raising productivity

(Yen in billions)

14

Piezoelectric stacks

H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

Parts for semiconductor fabrication equipment

Please refer to forward-looking statements on the final page.

78.3 83.9 62.2 88.1

120

4.5 12.8 18.5 15.0

17.9% 20.9% 16.3% 7.2%

70

Second Half Initiatives by Reporting Segment Semiconductor Parts Group

Initiatives Market Outlook

Solid demand for sophisticated digital consumer equipment such as smartphones Production adjustment in market related to server Increase sales and expand production capacity of ceramic packages Expand sales of organic packages for ASICs

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

15

Ceramic packages for crystal and SAW devices Organic packages for ASICs

Please refer to forward-looking statements on the final page.

90.2 95.6 66.9 105.4

0.0 130.0

4.4 13.8 15.7 15.5

13.1% 16.4% 6.5% 17.2%

60

Second Half Initiatives by Reporting Segment Applied Ceramic Products Group

Initiatives Market Outlook

Growing demand in Japan and overseas Price down of solar panels

Solar energy business Solar energy business

Expand production capacity of solar cells toward 600MW/year Establish a new module factory at Tianjin, China Improve conversion efficiency and enhance productivity

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

16

Solar power generating system for residential usage Shikoku Electric Power Co. “Matsuyama solar power plant” (Ehime Prefecture, Japan)

Please refer to forward-looking statements on the final page.

105.5 113.9 94.5 123.6

0.0 150.0

0.3 12.9 22.2 17.3

12.2% 18.0% 15.1%

50

Second Half Initiatives by Reporting Segment Electronic Device Group

Initiatives Market Outlook

Despite robust demand for smartphones, forecast production adjustments for conventional handsets, PCs and flat panel TVs Expand sales of small, high-capacitance capacitors and TCXOs Cultivate the Chinese market

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

17

Small size, high capacitance capacitors TCXO

0.3%

Please refer to forward-looking statements on the final page.

109.4 105.7 79.7 122.3

200

4.1 1.9

• 7.2
• 7.5

3.9% 1.6%

• 6.6%
• 9.4%
• 20

20 40

Second Half Initiatives by Reporting Segment Telecommunications Equipment Group

Initiatives Market Outlook

Increase in demand for smartphones in the U.S. Slow demand for handsets in Japan Recovery of PHS handset demand Expand sales of smartphone “Zio” in the U.S. Capture replacement demand in Japan Expand sales of new PHS handsets

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

18

K007 Zio (Smartphone) K008 PHS handsets

Please refer to forward-looking statements on the final page.

121.2 117.0 111.2 119.0

150

10.1 8.4 13.7 14.4

12.3% 8.5% 11.3% 7.5%

20 40

Second Half Initiatives by Reporting Segment Information Equipment Group

Initiatives Market Outlook

Moderate recovery in information technology investment in developed nations Increase in demand for MFPs and low-priced printers in emerging nations Augment line-up of color printers and MFPs Expand sales of A4 MFPs and low-priced printers in emerging markets

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

19

Color A4 MFP FS-C2126MFP B/W A4 MFP FS-C3140MFP Color A3 MFP TASKalfa 552Ci Please refer to forward-looking statements on the final page.

66.8 73.9 57.8 68.1

100

1.8 5.0 4.6 3.9

3.1% 7.4% 5.2% 6.8%

50

Second Half Initiatives by Reporting Segment Others

Initiatives Market Outlook

Despite increase in demand for ICT* business, intensifying price competition Expect tough competition in telecommunications engineering business Expand sales in ICT business Capture business opportunity related to WILLCOM, Inc.

Sales and Operating Profit

Pre-tax income Sales Pre-tax income ratio (%) (Yen in billions) H1 H2 H1 H2 (Forecast) FY3/2010 FY3/2011

20

Data center Business related to PHS Base Station

Kyocera Communication Systems Kyocera Communication Systems Co Co., ., Ltd Ltd (KCCS) (KCCS) * ICT: information and communication technology

Please refer to forward-looking statements on the final page.

60.8 156.5 174.8 56.0

160.0

100 200 300

1,260.0

1,073.8 1,290.4 1,283.9 1,128.6

500 1,000 1,500

Sales (Unit :Yen in billions)

Achieve FY3/2011 Forecasts

Sales Pre-tax income Pre-tax income ratio(%)

Pre-tax income (Unit: Yen in billions)

12.2% 13.5% 5.0% 5.7% 12.7%

FY3/2007 FY3/2008 FY3/2009 FY3/2010 FY3/2011(Forecast) 21

Please refer to forward-looking statements on the final page.

Appendixes

249.0 22.9 9.9 32.1 3.6 9.2

Net income attributable to shareholders

• f Kyocera Corporation

－ 124.68 － 174.74 － 50.06

EPS attributable to shareholders of Kyocera Corporation (diluted-yen)

2010 2009

• 6.1
• 0.9

4.3 14.1

5.8 15.0

Depreciation R&D expenses Capital expenditures Pre-tax income Profit from operations Net sales

12.9 8.0

16.4 14.4 258.5

Amount

Three months ended September 30,

5.0 3.1

6.4 5.6 100.0

% of net sales

12.1 20.7 43.2 41.2 324.2

Amount

3.7 6.4 13.3 12.7 100.0

% of net sales

• 0.8

12.7 26.8 26.8 65.7

Amount

Change

• 6.3

159.8 162.5 185.2 25.4

%

Financial Results of Q2 FY3/2011

－ Comparison with Q2 FY3/2010 －

(Unit: Yen in billions)

€： ¥ 134

• Approx. ¥ -8.0 billion
• Approx. ¥ -26.0 billion

US$： ¥ 94 €: ¥ 111 US$： ¥ 86

• Approx. ¥ -8.5 billion
• Approx. ¥ -20.0 billion

pre-tax income net sales Foreign currency fluctuation effect on: (compared with the previous same period)

Average exchange rate (yen)

22

2010 2009

25.4

－

14.3 15.7 2.0 33.9 35.5 30.4 37.2 32.7 58.7

% of total Amount

100.0

• 2.1

10.9 35.8 18.1 17.7 55.4 19.7 15.7 14.0 6.0

% of total

324.2

• 6.8

35.4 116.1 58.5 57.5 179.5 64.0 50.8 45.3 19.4

Amount

100.0

• 2.1

12.0 38.8 22.2 16.6 51.3 19.0 14.3 13.2 4.8

% of total

258.5

• 5.3

31.0 100.3 57.4 42.9 132.5 49.1 37.0 34.1 12.3

Amount

Three months ended September 30, 2010 Reporting Segment

• 1.5

Adjustments and eliminations

Change

65.7 4.4 15.8 1.1 14.6 47.0 14.9 13.8 11.2 7.1

Information Equipment Group Telecommunications Equipment Group Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group

Components business

Equipment business Net Sales Others

Sales by Reporting Segment

－ Three months ended September 30, 2010 －

(Unit: Yen in billions)

23

September 30, 2010 June 30, 2010

162.5

－

• 95.5
• 30.6

204.4 51.3 37.8 42.2

－

327.6 392.8 155.0 240.0

－

% Amount

• 0.7

－ 1.5 － 2.2

Corporate

• 0.4

－ － 0.4

Equity in earnings of affiliates and unconsolidated subsidiaries

Adjustments and eliminations Others

13.3 － 12.9 7.8 4.9 15.2 － 18.7 19.9 16.3 20.9 15.4

% of net sales

43.2

• 0.3

42.0 2.8 5.7 8.9

• 3.2

33.5 12.8 8.3 9.5 3.0

Amount

6.4 － 5.3 5.9 4.1 10.9

－

5.9 5.3 8.8 8.2

－

% of net sales

16.4 0.1 13.8 1.8 4.1 6.3

• 2.1

7.8 2.6 3.2 2.8

• 0.8

Amount

Three months ended

• 0.4

Reporting Segment

28.2

Operating Profit

Change

26.8 1.0 1.6 2.6

• 1.1

25.7 10.2 5.1 6.7 3.8

Information Equipment Group

Telecommunications Equipment Group

Electronic Device Group Applied Ceramic Products Group Semiconductor Parts Group Fine Ceramic Parts Group

Components business

Equipment business Pre-tax income

Operating Profit by Reporting Segment

－ Three months ended September 30, 2010 －

(Unit: Yen in billions)

24

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 the following lists. General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia, particularly China; Unexpected changes in economic, political and legal conditions in countries where we operate; Our ability to develop, launch and produce innovative products, including meeting quality and delivery standards, and our ability to otherwise meet the advancing technological 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 our production yields and operating results; Factors that may affect our exports, including a strong yen, political and economic instability, difficulties in collection of accounts receivable, decrease in cost competitiveness of our products, increases in shipping and handling costs, difficulty in staffing and managing international operations and inadequate protection of our intellectual property; Changes in exchange rates, particularly between the yen and the U.S. dollar and Euro, respectively, in which we make significant sales; Exposure to credit risk on trade receivables due to customers’ worsening financial condition; Inability to secure skilled employees, particularly engineering and technical personnel; Insufficient protection of our trade secrets and intellectual property rights including patents; Our continuing to hold licenses to manufacture and sell certain of our products; The possibility that future initiatives and in-process research and development may not produce the desired results; The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect, and may require more cost than expected for integration; Events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of disease or war; The

• ccurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business

facilities are located; The possibility of future tightening of environmental laws and regulations in Japan and other countries which may increase our environmental liability and costs and expenses to observe the obligations; Fluctuations in the value of, and impairment losses on, securities and other assets held by us; The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be required; 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 or financial position expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward- looking statements included in this document.

Forward-Looking Statements

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