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KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2014

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Kyocera Corporation (NYSE:KYO) (TOKYO:6971) today announced consolidated financial results for the first half of fiscal year 2015 (“first half” or “FY15-H1,” covering the six months ended September 30, 2014), as summarized below. Details are available at: http://global.kyocera.com/ir/financial/f_results.html

Consolidated Financial Highlights: First Half

Unit: Millions (except percentages and per-share amounts)

Six Months Ended September 30,

2013
(FY14-H1)
in JPY

2014
(FY15-H1)
in JPY

Increase
(Decrease)

2014
(FY15-H1)
in USD

2014
(FY15-H1)
in EUR

Amount

in JPY

%
Net sales: 699,663 714,329 14,666 2.1 6,553 5,139
Profit from operations: 58,203 54,751 (3,452) (5.9) 502 394
Income before income taxes: 69,053 68,118 (935) (1.4) 625 490
Net income attributable to shareholders of Kyocera Corporation: 42,930 43,649 719 1.7 400 314
Diluted earnings per share attributable to shareholders of Kyocera Corporation*1: 117.02 118.98 1.09 0.86

Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY109 and EUR1 = JPY139, rounded to the nearest unit.

Summary

Digital consumer equipment, including the components required therein, represents the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”). Compared with the six months ended September 30, 2013 (the “prior period”), demand for smartphones grew, particularly in emerging markets; and automotive markets expanded steadily, especially in China and the United States. However, growth in the solar energy market slowed considerably in Japan, due mainly to the impact of the consumption tax rate increase and the end of government subsidies supporting residential solar power generating systems.

Consolidated net sales increased compared to the prior period due to higher sales at the Semiconductor Parts Group and Information Equipment Group, offsetting sales declines at both the Electronic Device Group, which undertook structural reforms during the prior fiscal year, and the Telecommunications Equipment Group. Due mainly to price erosion at the Applied Ceramic Products Group, profit from operations decreased compared with the prior period, despite significant profit increases at the Information Equipment Group, Fine Ceramic Parts Group, and Electronic Device Group.

In summary, consolidated net sales increased 2.1% over the prior period, to JPY714,329 (USD6,553) million; profit from operations decreased 5.9%, to JPY54,751 (USD502) million; income before income taxes decreased 1.4%, to JPY68,118 (USD625) million; and net income attributable to shareholders of Kyocera Corporation increased 1.7%, to JPY43,649 (USD400) million.

Consolidated Financial Highlights: Second Quarter

Unit: Millions (except percentages)

Three Months Ended September 30,

2013
(FY14-Q2)
in JPY

2014
(FY15-Q2)
in JPY

Increase
(Decrease)

2014
(FY15-Q2)
in USD

2014
(FY15-Q2)
in EUR

Amount

in JPY

%
Net sales: 368,008 379,615 11,607 3.2 3,483 2,731
Profit from operations: 32,805 35,969 3,164 9.6 330 259
Income before income taxes: 34,240 37,438 3,198 9.3 343 269
Net income attributable to shareholders of Kyocera Corporation: 20,279 24,182 3,903 19.2 222 174

Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY109 and EUR1 = JPY139, rounded to the nearest unit.

Consolidated Financial Forecasts: Year Ending March 31, 2015

From the three months ending December 31, 2014 (“the third quarter”) onward, Kyocera expects component demand to rise, following increased production of digital consumer equipment – particularly smartphones – and steady growth in the industrial machinery and automotive markets. Kyocera also expects sales to increase through new product launches and expanding markets for mobile phone handsets and multifunctional products (MFPs).

In light of this outlook, sales and profit from the third quarter onward are projected to exceed the first half, and as a result, Kyocera has maintained its consolidated financial forecasts for the year ending March 31, 2015 as announced in April 2014. Forecasts for individual reporting segments have been revised as shown in the full report, based on results in the first half and the outlook for the third quarter onward.

Consolidated Forecasts: Year Ending March 31, 2015

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)

Fiscal 2014
Results

Fiscal 2015
Forecast

Increase
(Decrease)
(%) to Fiscal
2014 Results

Net sales: 1,447,369 1,580,000 9.2
Profit from operations: 120,582 135,000 12.0
Income before income taxes: 146,268 158,000 8.0
Net income attributable to shareholders of Kyocera Corporation: 88,756 97,000 9.3
Diluted earnings per share attributable to shareholders of Kyocera Corporation*1*2: 241.93 264.40
Average USD exchange rate: 100 104
Average EUR exchange rate: 134 137

*1 A “two-for-one” split of all Kyocera Corporation common shares was implemented on October 1, 2013. To allow comparison, “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is computed as though this stock split had taken effect on April 1, 2013.
*2 Forecast of “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is based on the average number of shares outstanding during the six months ended September 30, 2014.

FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company’s filings with the U.S. Securities and Exchange Commission.

About KYOCERA

Kyocera Corporation (NYSE:KYO) (TOKYO:6971) (http://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 solar power generating systems, mobile phones, printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. The company is ranked #531 on Forbes magazine’s 2014 “Global 2000″ listing of the world’s largest publicly traded companies.

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