KYOCERA Announces Consolidated Financial Results for Year Ended March 31, 2020

KYOTO, Japan--(BUSINESS WIRE)--Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the fiscal year ended March 31, 2020 (“fiscal year 2020” or “the period”), as summarized below. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Results: Year-Over-Year

Unit: Millions (except percentages and per-share amounts)
	Year Ended March 31,
	2019 (FY19) in JPY	2020 (FY20) in JPY	Change		2020 (FY20) in USD	2020 (FY20) in EUR
			Amount in JPY	%
Sales revenue:	1,623,710	1,599,053	(24,657)	(1.5)	14,670	13,325
Operating profit:	94,823	100,193	5,370	5.7	919	835
Profit before income taxes:	140,610	148,826	8,216	5.8	1,365	1,240
Profit attributable to owners of the parent:	103,210	107,721	4,511	4.4	988	898
Earnings per share attributable to owners of the parent (basic):	284.94	297.36	－	－	2.73	2.48
Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above as a convenience to the reader, based on the rates of USD1 = JPY109 and EUR1 = JPY120, rounded to the nearest unit (as of March 31, 2020)

Summary

Sales revenue from the Electronic Devices and Document Solutions Groups decreased due to prolonged inventory adjustments and the economic slowdown precipitated by the COVID-19 pandemic. This decrease was more than enough to offset increased sales revenue in the Industrial & Automotive Components Group, which gained a new revenue stream through M&A during the period. As a result, sales revenue for fiscal year 2020 totaled JPY1,599,053 (USD14,670) million, a decrease of 1.5% from the prior-year period.

Profit increased, despite higher depreciation costs, due mainly to the absence of one-time charges totaling approximately JPY68.5 billion (USD628 million) that were recorded in the prior year – including, notably, structural reforms in the solar energy and organic materials businesses. As a result, in comparison with the prior year, operating profit increased in fiscal year 2020 by JPY5,370 (USD49) million, or 5.7%, to JPY100,193 (USD919) million; profit before income taxes increased by JPY8,216 (USD75) million, or 5.8%, to JPY148,826 (USD1,365) million; and profit attributable to owners of the parent increased by JPY4,511 (USD41) million, or 4.4%, to JPY107,721 (USD988) million.

Average exchange rates for the period reflect the Japanese yen’s appreciation of 1.8% against the U.S. dollar, to JPY109, and 5.5% against euro, to JPY121, as compared to the prior year. As a result, sales revenue and profit before income taxes were pushed down by approximately JPY36 billion (USD330 million) and JPY11.5 billion (USD106 million), respectively.

Consolidated Q4 Results, Year-Over-Year

Unit: Millions (except percentages)
	Three Months Ended March 31,
	2019 (FY19-Q4) in JPY	2020 (FY20-Q4) in JPY	Change		2020 (FY20-Q4) in USD	2020 (FY20-Q4) in EUR
			Amount in JPY	%
Sales revenue:	409,293	402,168	(7,125)	(1.7)	3,690	3,351
Operating profit:	34,247	5,333	(28,914)	(84.4)	49	44
Profit before income taxes:	36,510	7,197	(29,313)	(80.3)	66	60
Profit attributable to owners of the parent:	23,791	6,456	(17,335)	(72.9)	59	54
(See note above regarding exchange rates.)

Consolidated Forecast: Year Ending March 31, 2021

Although expectations are high for an expansion of 5G services and a recovery in the semiconductor market during the fiscal year ending March 31, 2021, the continuing COVID-19 pandemic has introduced great uncertainty and new concerns regarding a possible global economic downturn. As a result, demand in the automotive components and document solutions businesses is expected to decline. Amid this uncertain economic environment, the company will pursue new business opportunities, improve productivity and reduce costs by incorporating artificial intelligence and automation to achieve its financial forecasts. The company expects exchange rates of JPY105 to the U.S. dollar and JPY115 to the euro during the fiscal year ending March 31, 2021. The table below assumes continued instability in the global economy during the three months ending June 30, 2020 due to the impact of COVID-19 — with a gradual recovery toward the end of fiscal 2021 commencing in the second quarter (the three months ending September 30, 2020).

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
	Fiscal 2020 Results	Fiscal 2021 Forecast		Change (%) from Fiscal 2020 Results
Sales revenue:	1,599,053	1,500,000		(6.2)
Operating profit:	100,193	75,000		(25.1)
Profit before income taxes:	148,826	120,000		(19.4)
Profit attributable to owners of the parent:	107,721	88,000		(18.3)
Earnings per share attributable to owners of the parent (basic):	297.36	242.92	*	-
Average USD exchange rate:	109	105		-
Average EUR exchange rate:	121	115		-
*Based on the average number of shares outstanding during the year ended March 31, 2020

Forward‐Looking Statements
Please refer to https://global.kyocera.com/ir/disclaimer.html

About KYOCERA
Kyocera Corporation (TOKYO:6971) (https://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 industrial and automotive components, semiconductor packages, electronic devices, solar power generating systems, printers, copiers, and mobile phones. Kyocera is ranked #655 on Forbes magazine’s 2019 “Global 2000” list of the world’s largest publicly traded companies.