Edgar Filing: KYOCERA CORP

Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of October 2007

Commission File Number: 1-07952

KYOCERA CORPORATION

6 Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

KYOCERA CORPORATION

/s/ AKIHIKO TOYOTANI

Akihiko Toyotani

General Manager of

Finance Division

Date: October 30, 2007

Information furnished on this form :

EXHIBITS


Exhibit Number
1.		Consolidated and Non-Consolidated Financial Results for the Six Months Ended September 30, 2007

2.		Notice regarding Revision of Amounts of Interim Dividend and Annual Total Dividend for the Fiscal Period Ending March 31, 2008 (54th Fiscal Period)

Consolidated Results of Kyocera Corporation and its Subsidiaries

for the Six Months Ended September 30, 2007

The consolidated financial statements are in conformity with accounting principles generally accepted in the United States of America.

Scheduled submission date for the Semiannual Report : December 12, 2007

Payment date of interim dividends : December 5, 2007

1. Results for the six months ended September 30, 2007 :

(1) Consolidated results of operations :


	Japanese yen
	Six months ended September 30,						Year ended March 31,
	2006			2007			2007
Net sales	¥	615,390 million		¥	636,560 million		¥	1,283,897 million
% change from the previous period		13.5	%		3.4	%		—
Profit from operations		63,128 million			67,823 million			135,102 million
% change from the previous period		87.0	%		7.4	%		—
Income from continuing operations before income taxes and minority interests		72,385 million			81,480 million			156,540 million
% change from the previous period		63.3	%		12.6	%		—
Net income		53,493 million			50,620 million			106,504 million
% change from the previous period		120.9	%		(5.4	)%		—
Earnings per share :
Basic		¥284.64			¥267.66			¥ 566.03
Diluted		284.14			267.06			564.79

Note :

Equity in earnings of affiliates and unconsolidated subsidiaries :


Six months ended September 30, 2007	¥	3,617 million
Six months ended September 30, 2006	¥	259 million
Year ended March 31, 2007	¥	2,621 million

(2) Consolidated financial position :

Japanese yen

September 30,

March 31,

2006

2007

Total assets

1,951,702 million

2,107,097 million

2,130,464 million

Stockholders’ equity

1,373,567 million

1,530,084 million

1,514,560 million

Stockholders’ equity to total assets

70.4

72.6

71.1

Stockholders’ equity per share

¥7,306.02

¥8,077.76

¥8,028.45

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(3) Consolidated cash flows :


	Japanese yen
	Six months ended September 30,				Year ended March 31,
	2006		2007		2007
Cash flows from operating activities	¥	47,923 million	¥	79,598 million	¥	149,644 million
Cash flows from investing activities		(74,084) million		(77,200) million		(151,703) million
Cash flows from financing activities		(13,079) million		(8,481) million		(20,645) million
Cash and cash equivalents at end of period		263,751 million		274,508 million		282,208 million

2. Dividends :


	Japanese yen
	Year ended March 31, 2007		Year ending March 31,
	Year ended March 31, 2007		2008
Interim dividends per share	¥	50	¥	60
Year-end dividends per share		60		60	(forecasted)

Annual dividends per share	¥	110	¥	120	(forecasted)

3. Consolidated financial forecast for the year ending March 31, 2008 :


	Japanese yen
	Year ending March 31, 2008
Net sales	¥	1,330,000 million
% change from the previous year		3.6	%
Profit from operations	¥	151,000 million
% change from the previous year		11.8	%
Income from continuing operations before income taxes	¥	166,000 million
% change from the previous year		6.0	%
Net income	¥	103,000 million
% change from the previous year		(3.3	)%

Note :

Forecast of earnings per share : ¥543.40

Earnings per share amounts is computed based on Statement of Financial Accounting Standards No.128.

Forecast of earnings per share is computed based on the diluted weighted average number of shares outstanding during the six months ended September 30, 2007.

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4. Others :

(1) Changes in scope of consolidation and application of the equity method :


	Consolidation	Equity method
Increase	10	0
Decrease	5	0

(2) Change in accounting policies :

There was a change in the accounting policy due to a new accounting standard.

Please refer to the accompanying “BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS” on page 32.

(3) Number of shares (common stock) :


	Six months ended September 30,		Year ending March 31,
	2006	2007	2007
Number of shares issued	191,309,290	191,309,290	191,309,290
Number of shares in treasury	3,304,510	1,889,935	2,660,201

(Reference) Outline of Non-Consolidated Results for Kyocera Corporation

1. Results for the six months ended September 30, 2007

(1) Results of operations :


	Japanese yen
	Six months ended September 30,						Year ended March 31,
	2006			2007			2007
Net sales	¥	259,738 million		¥	264,117 million		¥	531,557 million
% change from the previous period		17.6	%		1.7	%		—
Profit from operations	¥	21,284 million		¥	20,396 million		¥	49,432 million
% change from the previous period		71.9	%		(4.2	)%		—
Recurring profit	¥	32,844 million		¥	39,374 million		¥	73,729 million
% change from the previous period		22.1	%		19.9	%		—
Net income	¥	33,655 million		¥	27,504 million		¥	62,029 million
% change from the previous period		5.6	%		(18.3	)%		—
Earnings per share :
Basic		¥179.08			¥145.43			¥329.66

(2) Financial position :

Japanese yen

September 30,

March 31,

2006

2007

Total assets

1,471,385 million

1,563,909 million

1,611,891 million

Net assets

1,191,940 million

1,278,089 million

1,286,361 million

Net assets to total assets

81.0

81.7

79.8

Net assets per share

6,339.95

6,747.40

6,818.80

Stockholders’ equity (Reference)

1,191,940 million

1,278,089 million

1,286,361 million

With regard to forecasts set forth above, please refer to the accompanying “Forward Looking Statements” on page 15.

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Business Results

(1) Economic Situation and Business Environment

Despite a lack of vitality in personal consumption, the Japanese economy expanded moderately during the six months ended September 30, 2007 (the first half) due to upward momentum in private capital investment amid growing exports and rising corporate earnings.

While the U.S. economy slowed down mildly due to the negative impact of issues related to housing loans for individuals with low creditworthiness, an increase in exports and brisk personal consumption led to growth in the European economy. The Chinese economy continued to expand on the back of increases in capital investment and exports.

The digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (Kyocera Group or Kyocera), was solid on the whole as demand for components for such equipment expanded compared with the six months ended September 30, 2006 (the previous first half).

(2) Consolidated Financial Results

Consolidated net sales for the first half amounted to ¥636,560 million, an increase of 3.4% compared with the previous first half, reflecting an increase in revenue in the Information Equipment Group and sales growth in the Components Business.

Consolidated profit from operations increased by 7.4% to ¥67,823 million and income from continuing operations before income taxes and minority interests increased by 12.6% to ¥81,480 million as compared with the previous first half.

The adequacy of the estimates, on which the depreciation method of property, plant and equipment are based, was reviewed, being triggered by the tax revision in Japan. Consequently, the depreciation method was changed and this led to increase in depreciation costs. Due mainly to the increase in depreciation costs, the Components Business recorded a decline in operating profit compared with the previous first half. The Equipment Business posted profit growth in the first half due to a substantial increase in operating profit in the Information Equipment Group.

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Consolidated net income during the first half decreased by 5.4% to ¥50,620 million compared with the previous first half. This decrease was due to the absence of tax refunds accompanying the voidance of a portion of a tax assessment relating to transfer pricing adjustment and temporary gains including a gain on sale of shares of Kyocera Leasing Co.,Ltd. , which took place in the previous first half.


	(Yen in millions, except for per share amounts and exchange rate)
	Six months ended September 30,				Increase (Decrease) (%)
	2006		2007
	Amount	% of net sales	Amount	% of net sales
Net sales	615,390	100.0	636,560	100.0	3.4
Profit from operations	63,128	10.3	67,823	10.7	7.4
Income from continuing operations before income taxes and minority interests	72,385	11.8	81,480	12.8	12.6
Net income	53,493	8.7	50,620	8.0	(5.4	)
Diluted earnings per share	284.14	—	267.06	—	(6.0	)
Average US$ exchange rate	115	—	119	—	—
Average Euro exchange rate	146	—	162	—	—

(3) Implemented Management Measures and Significant Decisions during the First Half

In September 2007, AVX Corporation (AVX), a U.S. subsidiary, acquired American Technical Ceramics Corp., a U.S.-based manufacturer of electronic components, as a wholly-owned subsidiary, with the goal of strengthening its business in the area of advanced components business such as high frequency ceramic capacitors. This acquisition will enable AVX to expand its product line-up and its sales networks for high-value-added products.

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(4) Consolidated Financial Results by Reporting Segment

Components Business :

Sales in the Components Business increased by 4.6% compared with the previous first half to ¥333,136 million, while operating profit decreased by 1.7% to ¥48,941 million. The operating profit ratio was 14.7%.

Consolidated results by reporting segment in the Components Business are as follows.

1) Fine Ceramic Parts Group

This reporting segment includes fine ceramic components and automotive components.

Sales in this reporting segment during the first half, especially of dielectric ceramic parts for base stations and sapphire substrates for LEDs increased compared with the previous first half, reflecting growth in the mobile phone market. Sales of piezo stacks for automobiles also increased. Operating profit decreased as compared with the previous first half, however, due to an increase in expenses such as depreciation costs.

2) Semiconductor Parts Group

This reporting segment includes ceramic packages and organic packages.

Despite a moderate increase in demand in the three months ended September 30, 2007 for ceramic packages, a core product in this reporting segment, for use in mobile phone handsets as compared with the three months ended June 30, 2007 (the first quarter). Sales decreased in this reporting segment compared with the high levels of those recorded in the previous first half. Operating profit decreased along with sales decline and increase in expenses such as depreciation costs.

3) Applied Ceramic Products Group

This reporting segment includes solar power generating systems for residential and industrial use, cutting tools, dental and medical implants, and jewelry and applied ceramic related products.

Sales and operating profit in this reporting segment increased significantly in the first half compared with the previous first half due to higher sales and operating profit recorded in the solar energy business, which is a core business in this reporting segment.

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4) Electronic Device Group

This reporting segment includes electronic components such as various types of capacitors, crystal related products and connectors, and thin-film products such as thermal printheads and liquid crystal displays.

Performance in this reporting segment during the first half was solid in the electronic components business. Besides an increase in sales at AVX, sales of ceramic capacitors for flat-panel TVs and game consoles and of timing devices for mobile phone handsets increased. As a result, overall sales in this reporting segment for the first half increased compared with the previous first half. Operating profit decreased due to an increase in depreciation costs, despite improved profitability spurred by the increase in productivity.

Equipment Business :

Sales in the Equipment Business for the first half increased by 3.7% to ¥250,816 million, and operating profit increased by 32.1% to ¥19,116 million compared with the previous first half. The operating profit ratio was 7.6%.

Consolidated results by reporting segment in the Equipment Business are as follows.

1) Telecommunications Equipment Group

This reporting segment includes mobile phone handsets as well as PHS base stations and handsets.

Sales in this reporting segment for the first half decreased compared with the previous first half due to a decline in sales of mobile phone handsets in overseas markets. Operating loss was reduced compared with the previous first half due to a considerable improvement in profitability in the domestic mobile phone handset business and the PHS related business.

2) Information Equipment Group

This reporting segment includes ECOSYS brand printers, copiers and digital MFPs.

Sales and operating profit increased substantially in this reporting segment for the first half compared with the previous first half due to strong sales of printers and color digital MFPs in Europe in particular, coupled with the positive effects of the weak yen against the Euro.

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Others :

This reporting segment includes various information and communications technology services, materials for electronic components and optical components.

Sales in this reporting segment for the first half decreased by 2.1% to ¥65,277 million compared with the previous first half due to a decline in sales of optical related business. Operating profit increased substantially by 39.1% to ¥3,964 million, however, due to improved profitability at Kyocera Communication Systems Co., Ltd. and reduced loss in the optical related business. The operating profit ratio was 6.1%.

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Consolidated Sales by Reporting Segment


	(Yen in millions)
	Six months ended September 30,								Increase (Decrease) %
	2006				2007
	Amount		% of net sales		Amount		% of net sales
Fine Ceramic Parts Group	38,564		6.3		41,286		6.5		7.1
Semiconductor Parts Group	75,843		12.3		73,545		11.5		(3.0	)
Applied Ceramic Products Group	64,132		10.4		69,743		11.0		8.7
Electronic Device Group	139,984		22.7		148,562		23.3		6.1

Total Components Business	318,523		51.7		333,136		52.3		4.6
Telecommunications Equipment Group	117,181		19.0		113,907		17.9		(2.8	)
Information Equipment Group	124,619		20.3		136,909		21.5		9.9

Total Equipment Business	241,800		39.3		250,816		39.4		3.7
Others	66,660		10.9		65,277		10.3		(2.1	)
Adjustments and eliminations	(11,593	)	(1.9	)	(12,669	)	(2.0	)	—

Net sales	615,390		100.0		636,560		100.0		3.4

Consolidated Operating Profit by Reporting Segment


	(Yen in millions)
	Six months ended September 30,						Increae (Decrease) %
	2006			2007
	Amount		% of segment sales	Amount		% of segment sales
Fine Ceramic Parts Group	7,373		19.1	6,195		15.0	(16.0	)
Semiconductor Parts Group	11,887		15.7	8,367		11.4	(29.6	)
Applied Ceramic Products Group	8,966		14.0	13,434		19.3	49.8
Electronic Device Group	21,573		15.4	20,945		14.1	(2.9	)

Total Components Business	49,799		15.6	48,941		14.7	(1.7	)
Telecommunications Equipment Group	(1,016	)	—	(103	)	—	—
Information Equipment Group	15,491		12.4	19,219		14.0	24.1

Total Equipment Business	14,475		6.0	19,116		7.6	32.1
Others	2,849		4.3	3,964		6.1	39.1

Operating profit	67,123		10.9	72,021		11.3	7.3
Corporate	5,152		—	5,893		—	14.4
Equity in earnings of affiliates and unconsolidated subsidiaries	259		—	3,617		—	—
Adjustments and eliminations	(149	)	—	(51	)	—	—

Income from continuing operations before income taxes and minority interests	72,385		11.8	81,480		12.8	12.6

Note 1. From April 1, 2007, the “Optical Equipment Group,” previously a separate reporting segment, has been reclassified into “Others.” Accordingly, sales and operating profit for the previous first half have been retroactively reclassified.

Note 2. For the reasons set forth Note 1 above, net sales of “Others” in the previous first half increased by ¥5,810 million and “Adjustments and eliminations” decreased by ¥(80) million compared with those previously presented. Also, operating profit of “Others” in the previous first half decreased by ¥899 million compared with those previously announced.

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(5) Consolidated Sales by Geographic Area


	(Yen in millions)
	Six months ended September 30,				Increase (Decrease) (%)
	2006		2007
	Amount	% of net sales	Amount	% of net sales
Japan	236,735	38.5	241,811	38.0	2.1
United States of America	130,265	21.2	126,703	19.9	(2.7	)
Asia	107,111	17.4	118,594	18.6	10.7
Europe	97,464	15.8	112,606	17.7	15.5
Others	43,815	7.1	36,846	5.8	(15.9	)

Net sales	615,390	100.0	636,560	100.0	3.4

1) Japan

Although sales in the Electronic Device Group decreased, sales in the Fine Ceramic Parts Group and the Semiconductor Parts Group increased. Therefore, sales in domestic market as a whole slightly increased as compared with the previous first half.

2) United States of America

Due to decrease in sales in the Electronic Device Group and the Semiconductor Parts Group, revenue decreased compared with the previous first half.

3) Asia

Sales of products in the Electronic Device Group were favorable and the sales also increased in the Information Equipment Group. Therefore, revenue increased compared with the previous first half.

4) Europe

Sales in the Information Equipment Group, the solar energy business in the Applied Ceramic Products Group and the Electronic Device Group increased. Hence, revenue increased compared with the previous first half.

5) Others

Mainly due to decrease in sales for Latin America in the Telecommunication Equipment Group, revenue in this area substantially decreased.

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(6) Capital Expenditures and Depreciation


	(Yen in millions)
	Six months ended September 30,				Increase (Decrease) (%)
	2006		2007
	Amount	% of net sales	Amount	% of net sales
Capital expenditures	37,239	6.1	32,592	5.1	(12.5	)
Depreciation	33,682	5.5	37,291	5.9	10.7

During the first half, Kyocera made capital expenditures particularly to increase production capacity in the solar energy business in the Applied Ceramic Products Group and the Electronic Device Group in response to burgeoning demand. Capital expenditures were made for constructing new logistics center in the Information Equipment Group and the Semiconductor Parts Group and so on. Also, capital expenditures were made to enhance production capacity in the previous first half. As a result, overall capital expenditures during the first half decreased compared with the previous first half. Depreciation costs increased due to a change in accounting estimates for depreciation method.

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With regard to the economy and market environment for the six months ending March 31, 2008 (the second half), despite stagnation in the U.S. economy due to the negative impact on the issues related to housing loans for consumers with low creditworthiness is concerned, the digital consumer equipment market is expected to be remained healthy. Kyocera therefore projects steady demand for these equipment and components used in these products. Amid such a market environment, Kyocera will strive to continue its first half efforts to expand profitability and achieve the financial forecasts for the year ending March 31, 2008 (fiscal 2008) through vigorous product introductions in the second half.

There is no change in the overall consolidated financial forecast for fiscal 2008, which were announced on April 26, 2007.

Consolidated Forecasts for fiscal 2008 (Announced on April 26, 2007)


	(Yen in millions, except for per share amounts and exchange rates)
	Fiscal 2007 Results		Fiscal 2008 Forecasts		Increase (Decrease) (%)
	Amount	% of net sales	Amount	% of net sales	Increase (Decrease) (%)
Net sales	1,283,897	100.0	1,330,000	100.0	3.6
Profit from operations	135,102	10.5	151,000	11.4	11.8
Income from continuing operations before income taxes and minority interests	156,540	12.2	166,000	12.5	6.0
Net income	106,504	8.3	103,000	7.7	(3.3	)
Diluted earnings per share	564.79	—	543.40	—	(3.8	)
Average US$ exchange rate	117	—	110	—	—
Average Euro exchange rate	150	—	150	—	—

In the meantime, there is a change in a forecast of capital expenditure for fiscal 2008. The forecast of capital expenditures is revised to ¥81,000 million from the previous forecast (Announced on April 26, 2007) of ¥86,000 million.

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The following revisions have been made to financial forecasts by reporting segment for fiscal 2008 in light of factors such as results in each business through the end of the first half, the projected market environment and the impact of depreciation costs in the second half.

Consolidated Sales by Reporting Segment (Announced on October 30, 2007)


	(Yen in millions)
					Forecasts for Fiscal 2008 announced on								Increase (Decrease) to the Fiscal 2007 Results (%)
	Fiscal 2007 Results				April 26, 2007				October 30, 2007
	Amount		% of net sales		Amount		% of net sales		Amount		% of net sales
Fine Ceramic Parts Group	81,326		6.3		85,000		6.4		85,000		6.4		4.5
Semiconductor Parts Group	152,292		11.9		157,000		11.8		154,000		11.6		1.1
Applied Ceramic Products Group	131,103		10.2		144,000		10.8		152,000		11.4		15.9
Electronic Device Group	286,156		22.3		290,000		21.8		304,000		22.9		6.2

Total Components Business	650,877		50.7		676,000		50.8		695,000		52.3		6.8
Telecommunications Equipment Group	251,183		19.6		265,000		19.9		228,000		17.1		(9.2	)
Information Equipment Group	268,781		20.9		274,000		20.6		284,000		21.4		5.7

Total Equipment Business	519,964		40.5		539,000		40.5		512,000		38.5		(1.5	)
Others	137,235		10.7		140,000		10.5		142,000		10.7		3.5
Adjustments and eliminations	(24,179	)	(1.9	)	(25,000	)	(1.8	)	(19,000	)	(1.5	)	—

Net sales	1,283,897		100.0		1,330,000		100.0		1,330,000		100.0		3.6

Note 3. From April 1, 2007, the “Optical Equipment Group,” previously a separate reporting segment, has been reclassified into “Others.” Accordingly, net sales for the year ended March 31, 2007 (fiscal 2007) have been retroactively reclassified.

Note 4. For the reasons Note 3. above, net sales of “Others” in fiscal 2007 increased by ¥11,579 million and “Adjustments and eliminations” decreased by ¥(125) million compared with those previously announced.

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Consolidated Operating Profit by Reporting Segment


	(Yen in millions)
			Forecast for Fiscal 2008 Forecasts announced on				Increase (Decrease) to the Fiscal 2007 Results (%)
	Fiscal 2007 Results		April 26, 2007		October 30, 2007
	Amount	% of segment sales	Amount	% of segment sales	Amount	% of segment sales
Fine Ceramic Parts Group	15,677	19.3	16,000	18.8	13,500	15.9	(13.9	)
Semiconductor Parts Group	22,210	14.6	24,000	15.3	21,000	13.6	(5.4	)
Applied Ceramic Products Group	22,334	17.0	27,000	18.8	29,000	19.1	29.8
Electronic Device Group	44,487	15.5	46,000	15.9	44,500	14.6	0.0

Total Components Business	104,708	16.1	113,000	16.7	108,000	15.5	3.1
Telecommunications Equipment Group	291	0.1	6,000	2.3	2,000	0.9	587.3
Information Equipment Group	33,970	12.6	35,000	12.8	39,000	13.7	14.8

Total Equipment Business	34,261	6.6	41,000	7.6	41,000	8.0	19.7
Others	6,881	5.0	7,000	5.0	6,000	4.2	(12.8	)

Operating profit	145,850	11.4	161,000	12.1	155,000	11.7	6.3
Corporate and others	10,690	—	5,000	—	11,000	—	2.9

Income from continuing operations before income taxes and minority interests	156,540	12.2	166,000	12.5	166,000	12.5	6.0

Note 5. For the reasons set forth Note 3. on the previous page, operating profit of “Others” in fiscal 2007 decreased by ¥1,895 million compared with those previously announced.

Note 6. The average U.S. dollar and Euro exchange rates set forth above are the forecast average from October 1, 2007 to March 31, 2008.

Note 7. Forecast of diluted earnings per share for fiscal 2008 set forth above is computed based on the diluted weighted average number of shares outstanding during the first half.

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Note 8. Forward-Looking Statements

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 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; 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; laws and regulations relating to the taxation, and to manufacturing and trade; 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 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.

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Cash and cash equivalent at September 30, 2007 decreased by ¥7,700 million to ¥274,508 million compared with at March 31, 2007.


	(Yen in millions)
	Six Months Ended September 30,
	2006		2007
Cash flow from operating activities	47,923		79,598
Cash flow from investing activities	(74,084	)	(77,200	)
Cash flow from financing activities	(13,079	)	(8,481	)
Effect of exchange rate changes on cash and cash equivalent	2,182		(1,617	)
Net decrease in cash and cash equivalent	(37,058	)	(7,700	)
Cash and cash equivalent at beginning of period	300,809		282,208
Cash and cash equivalent at end of period	263,751		274,508

(1) Cash flow from operating activities

Net cash provided by operating activities in the first half increased by ¥ 31,675 million to ¥ 79,598 million from ¥47,923 million in the previous first half. Although net income decreased, and payables and accrued income taxes that increased in the previous first half decreased in the first half, receivables and inventories that increased in the previous first half decreased in the first half. As a result, cash inflows in the operating activities in the first half increased, compared with the previous first half.

(2) Cash flow from investing activities

Net cash used in investing activities in the first half increased by ¥3,116 million to ¥77,200 million from ¥74,084 million in the previous first half. This was due mainly to increases in cash outflows by acquisitions of business and acquisitions of time deposits that exceeded an increase in cash inflow provided by sales and maturities of securities.

(3) Cash flow from financing activities

Net cash used in financing activities in the first half decreased by ¥4,598 million to ¥8,481 million from ¥13,079 million in the previous first half. This was due mainly to a decrease in cash outflow by payments of long-term debt and an increase in cash inflow by reissuance of treasury stock.


	Years ended March 31,								Six months ended September 30, 2007
	2004		2005		2006		2007		Six months ended September 30, 2007
Stockholders’ equity to total assets	64.1	%	67.3	%	66.7	%	71.1	%	72.6	%
Market capitalization to total assets	91.3	%	82.2	%	101.3	%	98.4	%	96.8	%
Interest bearing debts per operating cash flows (years)	3.2		1.0		0.8		0.2		0.2
Operating cash flows per interest paid (ratio)	20.6		62.4		88.5		93.4		108.0

All indexes are computed on a consolidated basis.

Interest bearing debts represent all debts with interest expense included in consolidated balance sheets.

- 16 -

(1) Basic Profit Distribution Policy

In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors that include the amount of capital expenditures necessary for medium to long-term growth.

In order to ensure a sound financial basis, Kyocera also sets aside other general reserve in preparation for the creation of new businesses, cultivation of new markets, development of new technologies and acquisition of outside management resources needed to achieve sustainable corporate growth.

(2) Dividends

Based on performance in the first half and pursuant to the aforementioned policy, Kyocera will distribute an interim dividend of 60 yen per share, an increase of 10 yen compared with the previous first half. Kyocera plans to distribute a total annual dividend of 120 yen per share, an increase of 10 yen over the initial projection of 110 yen per share, announced on April 26, 2007.

There have been no significant changes in the information relating to business risk disclosed in the Form 20-F for the year ended March 31, 2007, and accordingly details thereof have been omitted here.

The Form 20-F is available at the URLs below:

http://www.kyocera.co.jp/ir/pdf/fy07.pdf

- 17 -

KYOCERA GROUP

Kyocera group consists of Kyocera Corporation, 174 subsidiaries and 10 affiliates.

(Chart of the group companies)

LOGO

- 18 -

Management Policies

(1) Basic management policy

(2) Target ratio of income before income taxes

(3) Medium term management strategy

(4) Challenges

There have been no significant changes in the information relating to key management items disclosed in the financial results for fiscal 2007 (announced on April 26, 2007), and accordingly details thereof have been omitted here.

The financial results are available at the URLs below.

Kyocera homepage:

http://global.kyocera.com/ir/pdf/tanshin070426e.pdf

Tokyo Stock Exchange homepage (listed company information search page):

http://www.tse.or.jp/tseHpFront/HPLCDS0101E.do?method=init&callJorEFlg=1

- 19 -

CONSOLIDATED BALANCE SHEETS


	Yen in millions
	September 30,								March31,
	2006				2007				2007
	Amount			%	Amount			%	Amount			%
Current assets :
Cash and cash equivalents	¥	263,751			¥	274,508			¥	282,208
Short-term investments		128,747				287,650				213,495
Trade notes receivable		25,181				21,567				25,033
Trade accounts receivable		228,198				232,381				236,380
Less allowances for doubtful accounts and sales returns		(7,384	)			(5,914	)			(5,960	)
Inventories		220,879				208,933				209,188
Deferred income taxes		45,609				41,141				45,390
Other current assets		46,151				51,940				40,757

Total current assets		951,132		48.7		1,112,206		52.8		1,046,491		49.1

Non-current assets :
Investments and advances :
Investments in and advances to affiliates and unconsolidated subsidiaries		7,499				14,606				10,093
Securities and other investments		622,344				579,062				690,568

Total investments and advances		629,843		32.3		593,668		28.2		700,661		32.9

Property, plant and equipment, at cost :
Land		56,969				57,154				56,806
Buildings		253,643				264,325				261,998
Machinery and equipment		717,718				746,552				729,636
Construction in progress		11,817				12,800				7,362
Less accumulated depreciation		(752,878	)			(800,535	)			(774,896	)

Total property, plant and equipment, at cost		287,269		14.7		280,296		13.3		280,906		13.2

Goodwill		31,615		1.6		42,022		2.0		32,894		1.5
Intangible assets		29,516		1.5		33,633		1.6		24,657		1.2
Other assets		22,327		1.2		45,272		2.1		44,855		2.1

Total non-current assets		1,000,570		51.3		994,891		47.2		1,083,973		50.9

Total assets	¥	1,951,702		100.0	¥	2,107,097		100.0	¥	2,130,464		100.0

- 20 -


	Yen in millions
	September 30,								March 31,
	2006				2007				2007
	Amount			%	Amount			%	Amount			%
Current liabilities :
Short-term borrowings	¥	12,929			¥	17,351			¥	15,250
Current portion of long-term debt		6,643				3,268				5,853
Trade notes and accounts payable		111,059				94,232				100,295
Other notes and accounts payable		52,365				49,025				49,134
Accrued payroll and bonus		39,417				42,774				41,680
Accrued income taxes		31,343				24,822				36,475
Other accrued liabilities		36,230				34,405				33,391
Other current liabilities		24,217				24,629				24,110

Total current liabilities		314,203		16.1		290,506		13.8		306,188		14.4

Non-current liabilities :
Long-term debt		9,243				6,269				7,283
Accrued pension and severance liabilities		23,541				16,115				16,297
Deferred income taxes		149,097				181,108				206,858
Other non-current liabilities		12,992				13,461				12,355

Total non-current liabilities		194,873		10.0		216,953		10.3		242,793		11.4

Total liabilities		509,076		26.1		507,459		24.1		548,981		25.8


Minority interests in consolidated subsidiaries		69,059		3.5		69,554		3.3		66,923		3.1

Stockholders’ equity :
Common stock		115,703				115,703				115,703
Additional paid-in capital		162,080				162,735				162,363
Retained earnings		1,011,682				1,098,562				1,055,293
Accumulated other comprehensive income		111,211				168,652				203,056
Treasury stock, at cost		(27,109	)			(15,568	)			(21,855	)

Total stockholders’ equity		1,373,567		70.4		1,530,084		72.6		1,514,560		71.1

Total liabilities, minority interests and stockholders’ equity	¥	1,951,702		100.0	¥	2,107,097		100.0	¥	2,130,464		100.0

Note : Accumulated other comprehensive income is as follows.
	Yen in millions
	September 30,								March 31, 2007
	2006				2007				March 31, 2007
Net unrealized gains on securities	¥	114,808			¥	153,081			¥	184,670
Net unrealized (losses) gains on derivative financial instruments	¥	(58	)		¥	68			¥	63
Minimum pension liability adjustments	¥	(2,057	)			—				—
Pension liability adjustments		—			¥	14,664			¥	15,419
Foreign currency translation adjustments	¥	(1,482	)		¥	839			¥	2,904

- 21 -

CONSOLIDATED STATEMENTS OF INCOME


	Yen in millions, except for per share amounts
	Six months ended September 30,										Increase (Decrease) %		Year ended March 31,
	2006					2007							2007
	Amount			%		Amount			%				Amount			%
Net sales	¥	615,390		100.0		¥	636,560		100.0		3.4		¥	1,283,897		100.0
Cost of sales		429,681		69.8			441,327		69.3		2.7			900,470		70.1

Gross profit		185,709		30.2			195,233		30.7		5.1			383,427		29.9
Selling, general and administrative expenses		122,581		19.9			127,410		20.0		3.9			248,325		19.4

Profit from operations		63,128		10.3			67,823		10.7		7.4			135,102		10.5
Other income (expenses) :
Interest and dividend income		6,790		1.1			9,742		1.5		43.5			15,472		1.2
Interest expense		(782	)	(0.1	)		(859	)	(0.1	)	—			(1,647	)	(0.1	)
Foreign currency transaction gains (losses), net		273		0.1			412		0.0		50.9			(65	)	(0.0	)
Equity in earnings of affiliates and unconsolidated subsidiaries		259		0.0			3,617		0.6		—			2,621		0.2
Gains on sale of securities, net		3,252		0.5			228		0.0		(93.0	)		3,819		0.3
Other, net		(535	)	(0.1	)		517		0.1		—			1,238		0.1

Total other income		9,257		1.5			13,657		2.1		47.5			21,438		1.7

Income from continuing operations before income taxes and minority interests		72,385		11.8			81,480		12.8		12.6			156,540		12.2
Income taxes		20,954		3.4			27,164		4.3		29.6			48,887		3.8

Income from continuing operations before minority interests		51,431		8.4			54,316		8.5		5.6			107,653		8.4
Minority interests		(3,113	)	(0.5	)		(3,696	)	(0.5	)	—			(6,324	)	(0.5	)

Income from continuing operations		48,318		7.9			50,620		8.0		4.8			101,329		7.9
Income from discontinued operations		5,175		0.8			—		—		—			5,175		0.4

Net income	¥	53,493		8.7		¥	50,620		8.0		(5.4	)	¥	106,504		8.3

Earnings per share:
Income from continuing operations:
Basic	¥	257.10				¥	267.66						¥	538.52
Diluted	¥	256.65				¥	267.06						¥	537.35
Income from discontinued operations:
Basic	¥	27.54					—						¥	27.51
Diluted	¥	27.49					—						¥	27.44
Net income:
Basic	¥	284.64				¥	267.66						¥	566.03
Diluted	¥	284.14				¥	267.06						¥	564.79
Weighted average number of shares of common stock outstanding (shares in thousands):
Basic		187,932					189,119							188,160
Diluted		188,266					189,548							188,573

- 22 -

Notes :


1.		Kyocera applies the Statement of Financial Accounting Standards Board (SFAS) No.130, ”Financial Reporting of Comprehensive Income.” Based on this standard, comprehensive income for the six months ended September 30, 2006 and 2007 were an increase of ¥91,757 million and an increase of ¥16,216 million, respectively.
2.		Earnings per share amounts were computed based on SFAS No.128, “Earnings per Share.” Under SFAS No.128, basic earnings per share was computed based on the weighted average number of shares of common stock outstanding during each period and diluted earnings per share assumed the dilution that could occur if securities or other contracts to issue common stock were converted into common stock, exercised or resulted in the issuance of common stock.
3.		Against the Correction Disposition with regard to transfer pricing taxation, which was rendered by the Osaka Regional Taxation Bureau in March 2005, Kyocera filed the Request for Reinvestigation in May 2005. Kyocera then received the Decision on the Request for Reinvestigation in September 2006. Based on the Decision, ¥(4,356) million is included in income taxes shown above, as refunds for the previous years.
4.		Kyocera sold its entire shares in Kyocera Leasing Co., Ltd., a subsidiary engaged in financial services, as a result, business results and profit on sales, ¥5,175 million, for the six months ended September 30, 2006 and the year ended March 31, 2007, have been recorded as income from discontinued operations in conformity with Statement of Financial Accounting Standard (SFAS) No.144, “Accounting for the impairment or disposal of Long-Lived Assets.”

- 23 -

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


	Yen in millions and shares in thousands
(Number of shares of common stock)	Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock			Comprehensive income
Balance, March 31, 2006 (187,755)	¥	115,703	¥	161,994		¥	967,576		¥	72,947		¥	(29,143	)
Net income for the year							106,504								¥	106,504
Other comprehensive income										112,551						112,551

Total comprehensive income for the year															¥	219,055

Adjustment for initially applying SAFS No. 158, net of taxes										17,558
Cash dividends							(18,787	)
Purchase of treasury stock (24)													(251	)
Reissuance of treasury stock (918)				127									7,539
Stock option plan of subsidiaries				242

Balance, March 31, 2007 (188,649)		115,703		162,363			1,055,293			203,056			(21,855	)
Cumulative effect of applying FIN 48 to opening balance (Note)							3,968
Net income for the period							50,620								¥	50,620
Other comprehensive income										(34,404	)					(34,404	)

Total comprehensive income for the period															¥	16,216

Cash dividends							(11,319	)
Purchase of treasury stock (13)													(156	)
Reissuance of treasury stock (783)				245									6,443
Stock option plan of subsidiaries				127

Balance, September 30, 2007 (189,419)	¥	115,703	¥	162,735		¥	1,098,562		¥	168,652		¥	(15,568	)


	Yen in millions and shares in thousands
(Number of shares of common stock)	Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock			Comprehensive income
Balance, March 31, 2006 (187,755)	¥	115,703	¥	161,994		¥	967,576		¥	72,947		¥	(29,143	)
Net income for the period							53,493								¥	53,493
Other comprehensive income										38,264						38,264

Total comprehensive income for the period															¥	91,757

Cash dividends							(9,387	)
Purchase of treasury stock (11)													(104	)
Reissuance of treasury stock (261)				(23	)								2,138
Stock option plan of subsidiaries				109

Balance, September 30, 2006 (188,005)	¥	115,703	¥	162,080		¥	1,011,682		¥	111,211		¥	(27,109	)

Note:

FIN 48 : Interpretation No. 48, “Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109”

Please refer to page 32 “(6) Accounting change.”

- 24 -

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Yen in millions
	Six months ended September 30,						Year ended March 31,
	2006			2007			2007
Cash flows from operating activities :
Net income	¥	53,493		¥	50,620		¥	106,504
Adjustments to reconcile net income to net cash provided by operating activities :
Depreciation and amortization		38,836			42,936			82,182
Write-down of inventories		3,829			3,043			11,328
Gains on sales of securities, net		(3,252	)		(228	)		(3,819	)
Minority interests		3,113			3,696			6,324
Gains on sales of investment in subsidiaries		(8,228	)		—			(8,252	)
(Increase) decrease in receivables		(31,595	)		10,188			(32,626	)
(Increase) decrease in inventories		(31,174	)		1,185			(25,100	)
Increase (decrease) in notes and accounts payable		18,915			(13,681	)		6,015
Increase (decrease) in accrued income taxes		3,989			(11,386	)		9,066
Increase in other current liabilities		10,921			2,603			11,111
Other, net		(10,924	)		(9,378	)		(13,089	)

Net cash provided by operating activities		47,923			79,598			149,644


Cash flows from investing activities :
Payments for purchases of securities		(31,521	)		(16,194	)		(71,449	)
Sales and maturities of securities		30,712			97,499			127,119
Acquisitions of business, net of cash acquired		(756	)		(26,771	)		(756	)
Proceeds from sales of investment in subsidiaries		24,553			—			24,602
Payments for purchases of property, plant and equipment, and intangible assets		(35,509	)		(32,520	)		(72,966	)
Proceeds from sales of property, plant and equipment, and intangible assets		785			462			2,693
Deposit of negotiable certificate of deposits and time deposits		(147,457	)		(206,872	)		(356,169	)
Withdrawal of negotiable certificate of deposits and time deposits		85,081			109,284			203,076
Other, net		28			(2,088	)		(7,853	)

Net cash used in investing activities		(74,084	)		(77,200	)		(151,703	)


Cash flows from financing activities :
Increase in short-term debt		7,316			1,983			9,369
Proceeds from issuance of long-term debt		1,928			1			1,928
Payments of long-term debt		(10,713	)		(4,299	)		(13,361	)
Dividends paid		(10,385	)		(12,060	)		(20,632	)
Purchase of treasury stock		(104	)		(156	)		(251	)
Reissuance of treasury stock		2,115			6,688			7,666
Other, net		(3,236	)		(638	)		(5,364	)

Net cash used in financing activities		(13,079	)		(8,481	)		(20,645	)

Effect of exchange rate changes on cash and cash equivalents		2,182			(1,617	)		4,103

Net decrease in cash and cash equivalents		(37,058	)		(7,700	)		(18,601	)
Cash and cash equivalents at beginning of period		300,809			282,208			300,809

Cash and cash equivalents at end of period	¥	263,751		¥	274,508		¥	282,208

- 25 -

SUPPLEMENTAL CASH FLOW INFORMATION


	Yen in millions
	Six months ended September 30,						Year ended March 31, 2007
	2006			2007			Year ended March 31, 2007
Cash paid during the period for :
Interest	¥	979		¥	737		¥	1,603
Income taxes		30,045			37,788			52,847

Acquisitions of business :
Fair value of assets acquired	¥	1,151		¥	32,606		¥	1,151
Fair value of liabilities assumed		(333	)		(4,887	)		(333	)
Cash acquired		(62	)		(948	)		(62	)

	¥	756		¥	26,771		¥	756

Note:

AVX recorded the fair values of the assets and liabilities of American Technical Ceramics Corp. as of the date of the acquisition under the purchase method of accounting, however, because of the proximity of this acquisition to period end, the fair values are based on preliminary valuations and are subject to adjustment as additional information is obtained.

- 26 -

SEGMENT INFORMATION

1. Reporting segments :


	Yen in millions
	Six months ended September 30,						Increase (Dearease)		Year ended March 31, 2007
	2006			2007			Increase (Dearease)		Year ended March 31, 2007
	Amount			Amount			%		Amount
Net sales :
Fine Ceramic Parts Group	¥	38,564		¥	41,286		7.1		¥	81,326
Semiconductor Parts Group		75,843			73,545		(3.0	)		152,292
Applied Ceramic Products Group		64,132			69,743		8.7			131,103
Electronic Device Group		139,984			148,562		6.1			286,156
Telecommunications Equipment Group		117,181			113,907		(2.8	)		251,183
Information Equipment Group		124,619			136,909		9.9			268,781
Others		66,660			65,277		(2.1	)		137,235
Adjustments and eliminations		(11,593	)		(12,669	)	—			(24,179	)

	¥	615,390		¥	636,560		3.4		¥	1,283,897

Operating profit :
Fine Ceramic Parts Group	¥	7,373		¥	6,195		(16.0	)	¥	15,677
Semiconductor Parts Group		11,887			8,367		(29.6	)		22,210
Applied Ceramic Products Group		8,966			13,434		49.8			22,334
Electronic Device Group		21,573			20,945		(2.9	)		44,487
Telecommunications Equipment Group		(1,016	)		(103	)	—			291
Information Equipment Group		15,491			19,219		24.1			33,970
Others		2,849			3,964		39.1			6,881

		67,123			72,021		7.3			145,850
Corporate		5,152			5,893		14.4			8,569
Equity in earnings of affiliates and unconsolidated subsidiaries		259			3,617		—			2,621
Adjustments and eliminations		(149	)		(51	)	—			(500	)

Income from continuing operations before income taxes and minority interests	¥	72,385		¥	81,480		12.6		¥	156,540

Depreciation and amortization :
Fine Ceramic Parts Group	¥	1,943		¥	3,627		86.7		¥	4,500
Semiconductor Parts Group		5,853			7,500		28.1			12,533
Applied Ceramic Products Group		3,791			4,530		19.5			8,097
Electronic Device Group		9,598			11,608		20.9			21,537
Telecommunications Equipment Group		3,201			4,432		38.5			9,075
Information Equipment Group		8,239			5,751		(30.2	)		16,326
Others		4,584			3,528		(23.0	)		7,419
Corporate		1,507			1,960		30.1			2,575

Total	¥	38,716		¥	42,936		10.9		¥	82,062

Capital expenditures :
Fine Ceramic Parts Group	¥	2,900		¥	3,100		6.9		¥	7,447
Semiconductor Parts Group		5,721			3,978		(30.5	)		11,432
Applied Ceramic Products Group		2,510			3,654		45.6			7,330
Electronic Device Group		10,893			11,246		3.2			19,812
Telecommunications Equipment Group		1,745			1,092		(37.4	)		3,800
Information Equipment Group		8,061			5,467		(32.2	)		11,962
Others		4,329			1,549		(64.2	)		5,774
Corporate		1,080			2,506		132.0			2,339

Total	¥	37,239		¥	32,592		(12.5	)	¥	69,896

- 27 -

2. Geographic segments (Sales and Operating profit by geographic area) :


	Yen in millions
	Six months ended September 30,						Increase (Decrease)		Year ended March 31, 2007
	2006			2007			Increase (Decrease)		Year ended March 31, 2007
	Amount			Amount			%		Amount
Net sales :
Japan	¥	250,962		¥	255,785		1.9		¥	523,869
Intra-group sales and transfer between geographic areas		199,385			194,451		(2.5	)		388,879

		450,347			450,236		(0.0	)		912,748

United States of America		155,355			146,131		(5.9	)		319,033
Intra-group sales and transfer between geographic areas		17,783			15,872		(10.7	)		37,357

		173,138			162,003		(6.4	)		356,390

Asia		95,265			104,180		9.4			195,319
Intra-group sales and transfer between geographic areas		78,505			90,166		14.9			152,219

		173,770			194,346		11.8			347,538

Europe		101,494			118,012		16.3			219,695
Intra-group sales and transfer between geographic areas		19,784			20,947		5.9			40,040

		121,278			138,959		14.6			259,735

Others		12,314			12,452		1.1			25,981
Intra-group sales and transfer between geographic areas		5,534			8,050		45.5			11,432

		17,848			20,502		14.9			37,413

Adjustments and eliminations		(320,991	)		(329,486	)	—			(629,927	)

	¥	615,390		¥	636,560		3.4		¥	1,283,897

Operating Profit :
Japan	¥	49,773		¥	46,493		(6.6	)	¥	96,804
United States of America		9,947			4,144		(58.3	)		23,521
Asia		11,068			12,950		17.0			19,165
Europe		3,825			5,565		45.5			10,218
Others		852			1,777		108.6			1,086

		75,465			70,929		(6.0	)		150,794
Adjustments and eliminations		(8,491	)		1,041		—			(5,444	)

		66,974			71,970		7.5			145,350
Corporate		5,152			5,893		14.4			8,569
Equity in earnings of affiliates and unconsolidated subsidiaries		259			3,617		—			2,621

Income from continuing operations before income taxes and minority interest	¥	72,385		¥	81,480		12.6		¥	156,540

- 28 -

3. Geographic segments (Sales by region) :


	Yen in millions
	Six months ended September 30,								Increase (Decrease)					Year ended March 31,
	2006				2007				Increase (Decrease)					2007
	Amount			%	Amount			%	Amount			%		Amount			%
Japan	¥	236,735		38.5	¥	241,811		38.0	¥	5,076		2.1		¥	496,959		38.7
United States of America		130,265		21.2		126,703		19.9		(3,562	)	(2.7	)		274,361		21.4
Asia		107,111		17.4		118,594		18.6		11,483		10.7			216,663		16.9
Europe		97,464		15.8		112,606		17.7		15,142		15.5			210,726		16.4
Others		43,815		7.1		36,846		5.8		(6,969	)	(15.9	)		85,188		6.6

Net sales	¥	615,390		100.0	¥	636,560		100.0	¥	21,170		3.4		¥	1,283,897		100.0

Sales outside Japan	¥	378,655			¥	394,749			¥	16,094		4.3		¥	786,938
Sales outside Japan to net sales		61.5	%			62.0	%								61.3	%

- 29 -

INVESTMENTS IN DEBT AND EQUITY SECURITIES

Investments in debt and equity securities as of September 30, 2007, March 31, 2007 and September 30, 2006, included in short-term investments (current assets) and in securities and other investments (non-current assets) are summarized as follows :


	Yen in millions
	September 30, 2007								March 31, 2007
	Cost*		Aggregate Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost*		Aggregate Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Available-for-sale securities :
Corporate debt securities	¥	3,470	¥	3,617	¥	168	¥	21	¥	3,842	¥	4,033	¥	194	¥	3
Other debt securities		736		757		21		—		74,563		74,574		71		60
Equity securities		274,645		533,497		259,316		464		272,653		585,274		312,724		103

Total available-for-sale securities		278,851		537,871		259,505		485		351,058		663,881		312,989		166

Held-to-maturity securities :
Other debt securities		24,038		24,055		17		—		33,512		33,447		—		65

Total held-to-maturity securities		24,038		24,055		17		—		33,512		33,447		—		65

Total investments in debt and equity securities	¥	302,889	¥	561,926	¥	259,522	¥	485	¥	384,570	¥	697,328	¥	312,989	¥	231


	September 30, 2006
	Cost*		Aggregate Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Available-for-sale securities :
Corporate debt securities	¥	3,008	¥	3,143	¥	150	¥	15
Other debt securities		137,668		137,960		316		24
Equity securities		272,054		466,156		194,335		233

Total available-for-sale securities		412,730		607,259		194,801		272

Held-to-maturity securities :
Other debt securities		27,726		27,574		—		152

Total held-to-maturity securities		27,726		27,574		—		152

Total investments in debt and equity securities	¥	440,456	¥	634,833	¥	194,801	¥	424

*	Cost represents amortized cost for held-to-maturity securities and acquisition cost for available-for-sale securities. The cost basis of individual securities is written down to fair value as a new cost basis when other-than-temporary impairment is recognized.

- 30 -

EARNINGS PER SHARE

1. Stockholders’ equity per share, basic and diluted earnings per share are as follows:


	Japanese yen
	Six months ended September 30,		Year ended March 31,
	2006	2007	2007
Stockholders’ equity per share	7,306.02	8,077.76	8,028.45
Basic earnings per share	284.64	267.66	566.03
Diluted earnings per share	284.14	267.06	564.79

2. A reconciliation of the numerators and the denominators of basic and diluted earnings per share computations are as follows:

	Yen in millions, except per share amounts
	Six months ended September 30,		Year ended March 31,
	2006	2007	2007
Income from continuing operations	48,318	50,620	101,329
Income from discontinued operations	5,175	—	5,175
Net income	53,493	50,620	106,504

Basic earnings per share
Income from continuing operations	257.10	267.66	538.52
Income from discontinued operations	27.54	—	27.51
Net income	284.64	267.66	566.03

Diluted earnings per share
Income from continuing operations	256.65	267.06	537.35
Income from discontinued operations	27.49	—	27.44
Net income	284.14	267.06	564.79

Basic weighted average number of shares outstanding (shares in thousands)	187,932	189,119	188,160
Dilutive effect of stock options (shares in thousands)	334	429	413
Diluted weighted average number of shares outstanding (shares in thousands)	188,266	189,548	188,573

- 31 -

BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

1.	Scope of consolidation and application of the equity method :

Major consolidated subsidiaries :

AVX CORPORATION

KYOCERA WIRELESS CORP.

KYOCERA MITA CORPORATION

KYOCERA ELCO CORPORATION

Major affiliates accounted for by the equity method :

WILLCOM, INC.

2.	Changes in scope of consolidation and application of the equity method :


Consolidation

(Increase)	10	AMERICAN TECHNICAL CERAMICS CORP. and others

(Decrease)	5	KYOCERA MITA (SCHWEIZ) AG and others

Equity method

(Increase)	None

(Decrease)	None

3.	Summary of significant accounting policies

Kyocera’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

(1)

Valuation of inventories

Finished goods and work in process are mainly stated at the lower or cost of market, the cost being determined by the average method. All other inventories are mainly stated at the lower or cost of market, the cost being determined by the first-in, first-out method.

(2)

Valuation of securities

Kyocera adopts Statement of Financial Accounting Standards No. 115, “Accounting for Certain Investments in Debt and Equity Securities.”

Held-to-maturity securities are recorded at amortized cost.

Available-for-sales securities are recorded at fair value, with unrealized gains and losses excluded from income

and recorded in other comprehensive income, net of taxes.

(3)

Depreciation method of property, plant and equipment

Depreciation is computed based mainly on a declining balance method over their estimated useful lives.

(4)

Goodwill and other intangible assets

Kyocera adopts Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.”

(5)

Accounting for allowances and accruals

Allowance for doubtful accounts :

Kyocera provides allowance for doubtful accounts based on the past actual ratio of losses on bad debt in addition to the estimation of uncollectible amount based on the analysis of certain individual receivables.

Accrued pension and severance cost :

Kyocera adopts Statement of Financial Accounting Standards No. 87, “Employers’ Accounting for Pensions” and Statement of Financial Accounting Standards No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB No. 87, 88, 106 and 132(R),” and pension and severance cost is accrued based on the projected benefit obligations and the fair value of plan assets at the balance sheet date. Prior service cost is amortized by the straight-line method over the average remaining service period of employees. Actuarial loss is recognized by amortizing a portion in excess of 10% of the greater of the projected benefit obligations or the market-related value of plan assets by the straight-line method over the average remaining service period of employees.

(6)

Accounting change

In June 2006, the Financial Accounting Standard Board (FASB) issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109” (FIN 48) which clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with SFAS No. 109, “Accounting for Income Taxes.” FIN 48 also provides guidance on derecognition, classification, interest and penalties, disclosure and transitional measures. Cumulative effect of applying FIN 48, which was effective April 1, 2007, increased the opening balance of retained earnings by ¥3,968 million.

- 32 -

BALANCE SHEETS


	Yen in millions
	September 30,								March 31,
	2006				2007				2007
	Amount			%	Amount			%	Amount			%
Current assets :
Cash and bank deposits	¥	119,336			¥	313,986			¥	203,301
Trade notes receivable		46,376				33,016				41,423
Trade accounts receivable		96,306				109,184				108,685
Marketable securities		37,997				—				22,937
Finished goods and merchandise		17,818				18,469				17,204
Raw materials		16,546				13,685				16,560
Work in process		20,416				20,036				20,541
Supplies		745				903				706
Deferred income taxes		16,590				13,969				17,193
Loans to subsidiaries		14,372				8,817				16,880
Other accounts receivable		8,048				6,480				8,291
Other current assets		6,904				15,004				11,434
Allowance for doubtful accounts		(164	)			(1,015	)			(173	)

Total current assets		401,290		27.3		552,534		35.3		484,982		30.1

Non-current assets :
Tangible fixed assets :
Buildings		35,770				30,993				34,921
Structures		2,197				1,785				2,091
Machinery and equipment		47,358				43,658				44,896
Vehicles		26				23				21
Tools, furniture and fixtures		7,679				7,971				8,139
Land		33,381				33,670				33,372
Construction in progress		947				2,153				900

Total tangible fixed assets		127,358		8.6		120,253		7.7		124,340		7.7

Intangible assets :
Patent rights and others		13,365				7,091				10,431

Total intangible assets		13,365		0.9		7,091		0.5		10,431		0.6

Investments and other assets :
Investments in securities		577,884				544,719				648,538
Investments in subsidiaries and affiliates		262,627				260,775				260,775
Investments in subsidiaries and affiliates other than equity securities		27,054				26,685				26,685
Long-term loans		22,659				19,577				20,633
Long-term prepaid expenses		3,051				2,240				2,458
Long-term deposits		34,000				28,000				31,000
Security deposits		1,880				1,808				1,823
Other investments		571				473				527
Allowance for doubtful accounts		(354	)			(246	)			(301	)

Total investments and other assets		929,372		63.2		884,031		56.5		992,138		61.6

Total non-current assets		1,070,095		72.7		1,011,375		64.7		1,126,909		69.9

Total assets	¥	1,471,385		100.0	¥	1,563,909		100.0	¥	1,611,891		100.0

- 33 -


	Yen in millions
	September 30,										March 31,
	2006					2007					2007
	Amount			%		Amount			%		Amount			%
Current liabilities :
Trade accounts payable	¥	56,667				¥	49,667					55,561
Other payables		20,763					21,718					21,774
Accrued expenses		8,014					8,364					8,356
Income taxes payable		13,052					9,280					12,550
Deposits received		2,738					2,046					1,916
Accrued bonuses		10,447					11,480					11,152
Accrued bonuses for directors		34					73					136
Warranty reserves		4,596					5,279					5,045
Allowance for sales returns		143					131					114
Other current liabilities		1,066					330					667

Total current liabilities		117,520		8.0			108,368		6.9			117,271		7.3

Non-current liabilities :
Long-term accounts payable		3,425					1,260					2,953
Deferred income taxes		142,667					164,405					191,441
Accrued pension and severance costs		14,585					10,696					12,705
Retirement allowances for directors and executive officers		968					956					1,022
Other non-current liabilities		280					135					138

Total non-current liabilities		161,925		11.0			177,452		11.4			208,259		12.9

Total liabilities		279,445		19.0			285,820		18.3			325,530		20.2

Net assets

Stockholders’ equity :
Common stock		115,703		7.9			115,703		7.4			115,703		7.2
Capital surplus:
Additional paid-in capital		192,555					192,555					192,555
Other capital surplus		—					372					127
Total capital surplus		192,555		13.1			192,927		12.3			192,682		12.0

Retained earnings:
Legal reserves		17,207					17,207					17,207
Other retained earnings :
Reserve for special depreciation		1,612					751					991
Reserve for research and development		1,000					1,000					1,000
Reserve for dividends		1,000					1,000					1,000
Reserve for retirement benefits		300					300					300
Reserve for overseas investments		1,000					1,000					1,000
General reserve		603,837					643,837					603,837
Unappropriated retained earnings		43,394					39,438					63,012

Total retained earnings		669,350		45.5			704,533		45.1			688,347		42.7

Treasury stock, at cost		(27,109	)	(1.9	)		(15,568	)	(1.0	)		(21,855	)	(1.4	)
Total stockholders’ equity		950,499		64.6			997,595		63.8			974,877		60.5

Difference of appreciation and conversion
Net unrealized gains on other securities		241,441		16.4			280,494		17.9			311,484		19.3

Total net assets		1,191,940		81.0			1,278,089		81.7			1,286,361		79.8

Total liabilities and net assets	¥	1,471,385		100.0		¥	1,563,909		100.0		¥	1,611,891		100.0

- 34 -

STATEMENTS OF INCOME


	Yen in millions
	Six months ended September 30,										Increase (Decrease) %		Year ended March 31,
	2006					2007							2007
	Amount			%		Amount			%				Amount			%
Net sales	¥	259,738		100.0		¥	264,117		100.0		1.7		¥	531,557		100.0
Cost of sales		201,260		77.5			204,420		77.4		1.6			407,121		76.6

Gross profit		58,478		22.5			59,697		22.6		2.1			124,436		23.4
Selling, general and administrative expenses		37,194		14.3			39,301		14.9		5.7			75,004		14.1

Profit from operations		21,284		8.2			20,396		7.7		(4.2	)		49,432		9.3
Non-operating income :
Interest and dividend income		9,955		3.8			15,755		6.0		58.3			25,090		4.7
Foreign currency transaction gains, net		622		0.2			617		0.2		(0.8	)		1,021		0.2
Other non-operating income		3,003		1.2			4,241		1.6		41.2			6,730		1.3

Total non-operating income		13,580		5.2			20,613		7.8		51.8			32,841		6.2
Non-operating expenses :
Interest expense		2		0.0			2		0.0		1.4			14		0.0
Other non-operating expenses		2,018		0.8			1,633		0.6		(19.1	)		8,530		1.6

Total non-operating expenses		2,020		0.8			1,635		0.6		(19.1	)		8,544		1.6

Recurring profit		32,844		12.6			39,374		14.9		19.9			73,729		13.9
Non-recurring gain		10,753		4.2			333		0.1		(96.9	)		11,405		2.1
Non-recurring loss		484		0.2			3,206		1.2		562.4			4,461		0.8

Income before income taxes		43,113		16.6			36,501		13.8		(15.3	)		80,673		15.2
Income taxes – current		14,176		5.4			11,273		4.3		(20.5	)		23,814		4.5
Refund of income taxes – previous years		(4,356	)	(1.7	)		—		—		—			(4,305	)	(0.8	)
Income taxes – deferred		(362	)	(0.1	)		(2,276	)	(0.9	)	—			(865	)	(0.2	)

Net income	¥	33,655		13.0		¥	27,504		10.4		(18.3	)	¥	62,029		11.7

- 35 -

STATEMENT OF CHANGES IN NET ASSETS


	Yen in millions
	Six months ended September 30, 2006
	Stockholders’ equity																																	Difference of appreciation and conversion
	Common stock		Capital surplus				Retained earnings																					Treasury stock, at cost			Total stock- holders’ equity			Net unrealized gains on other securities		Total unrealized gain (loss) on appreciation and conversion		Total net assets
			Additional paid-in capital		Total Capital surplus		Legal reserve		Other retained earnings																Total retained earnings
			Additional paid-in capital		Total Capital surplus		Legal reserve		Reserve for special depre- ciation			Reserve for research and develop- ment		Reserve for dividends		Reserve for retire- ment benefits		Reserve for overseas invest- ments		General reserve		Unappro- priated retained earnings			Total retained earnings
Balance, March 31, 2006	¥	115,703	¥	192,555	¥	192,555	¥	17,207	¥	1,584		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	553,837	¥	69,245		¥	645,173		¥	(29,143	)	¥	924,288		¥	207,973	¥	207,973	¥	1,132,261

Changes in net assets
Appropriation to reserve for special depreciation		—		—		—		—		623			—		—		—		—		—		(623	)		—			—			—			—		—		—
Reversal of reserve for special depreciation		—		—		—		—		(595	)		—		—		—		—		—		595			—			—			—			—		—		—
Appropriation to general reserve		—		—		—		—		—			—		—		—		—		50,000		(50,000	)		—			—			—			—		—		—
Dividends		—		—		—		—		—			—		—		—		—		—		(9,387	)		(9,387	)		—			(9,387	)		—		—		(9,387	)
Directors’ bonuses		—		—		—		—		—			—		—		—		—		—		(68	)		(68	)		—			(68	)		—		—		(68	)
Net income		—		—		—		—		—			—		—		—		—		—		33,655			33,655			—			33,655			—		—		33,655
Purchase of treasury stock		—		—		—		—		—			—		—		—		—		—		—			—			(104	)		(104	)		—		—		(104	)
Reissuance of treasury stock		—		—		—		—		—			—		—		—		—		—		(23	)		(23	)		2,138			2,115			—		—		2,115
Net change in items other than stockholders’ equity		—		—		—		—		—			—		—		—		—		—		—			—			—			—			33,468		33,468		33,468
Total changes in net assets		—		—		—		—		28			—		—		—		—		50,000		(25,851	)		24,177			2,034			26,211			33,468		33,468		59,679

Balance, September 30, 2006	¥	115,703	¥	192,555	¥	192,555	¥	17,207	¥	1,612		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	603,837	¥	43,394		¥	669,350		¥	(27,109	)	¥	950,499		¥	241,441	¥	241,441	¥	1,191,940

- 36 -

STATEMENT OF CHANGES IN NET ASSETS


	Yen in millions
	Six months ended September 30, 2007
	Stockholders’ equity																																			Difference of appreciation and conversion
	Common stock		Capital surplus						Retained earnings																					Treasury stock, at cost			Total stock- holders’ equity			Net unrealized gains on other securities			Total unrealized gain (loss) on appreciation and conversion			Total net assets
			Additional paid-in capital		Other capital surplus		Total capital surplus		Legal reserve		Other retained earnings																Total retained earnings
			Additional paid-in capital		Other capital surplus		Total capital surplus		Legal reserve		Reserve for special depre- ciation			Reserve for research and develop- ment		Reserve for dividends		Reserve for retire- ment benefits		Reserve for overseas invest- ments		General reserve		Unappro- priated retained earnings			Total retained earnings
Balance, March 31, 2007	¥	115,703	¥	192,555	¥	127	¥	192,682	¥	17,207	¥	991		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	603,837	¥	63,012		¥	688,347		¥	(21,855	)	¥	974,877			¥311,484		¥	311,484		¥	1,286,361

Changes in net assets
Appropriation to reserve for special depreciation		—		—		—		—		—		4			—		—		—		—		—		(4	)		—			—			—			—			—			—
Reversal of reserve for special depreciation		—		—		—		—		—		(244	)		—		—		—		—		—		244			—			—			—			—			—			—
Appropriation to general reserve		—		—		—		—		—		—			—		—		—		—		40,000		(40,000	)		—			—			—			—			—			—
Dividends		—		—		—		—		—		—			—		—		—		—		—		(11,319	)		(11,319	)		—			(11,319	)		—			—			(11,319	)
Net income		—		—		—		—		—		—			—		—		—		—		—		27,504			27,504			—			27,504			—			—			27,504
Purchase of treasury stock		—		—		—		—		—		—			—		—		—		—		—		—			—			(156	)		(156	)		—			—			(156	)
Reissuance of treasury stock		—		—		245		245		—		—			—		—		—		—		—		—			—			6,443			6,688			—			—			6,688
Net change in items other than stockholders’ equity		—		—		—		—		—		—			—		—		—		—		—		—			—			—			—			(30,990	)		(30,990	)		(30,990	)
Total changes in net assets		—		—		245		245		—		(240	)		—		—		—		—		40,000		(23,574	)		16,186			6,287			22,718			(30,990	)		(30,990	)		(8,272	)

Balance, September 30, 2007	¥	115,703	¥	192,555	¥	372	¥	192,927	¥	17,207	¥	751		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	643,837	¥	39,438		¥	704,533		¥	(15,568	)	¥	997,595		¥	280,494		¥	280,494		¥	1,278,089

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STATEMENT OF CHANGES IN NET ASSETS


	Yen in millions
	Year ended March 31, 2007
	Stockholders’ equity																																			Difference of appreciation and conversion				Total net assets
	Common stock		Capital surplus						Retained earnings																					Treasury stock, at cost			Total stock- holders’ equity			Net unrealized gains on other securities		Total unrealized gain (loss) on appreciation and conversion
			Additional paid-in capital		Other capital surplus		Total capital surplus		Legal reserve		Other retained earnings																Total retained earnings
			Additional paid-in capital		Other capital surplus		Total capital surplus		Legal reserve		Reserve for special depre- ciation			Reserve for research and develop- ment		Reserve for dividends		Reserve for retire- ment benefits		Reserve for overseas invest- ments		General reserve		Unappro- priated retained earnings			Total retained earnings
Balance, March 31, 2006	¥	115,703	¥	192,555		—	¥	192,555	¥	17,207	¥	1,584		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	553,837	¥	69,245		¥	645,173		¥	(29,143	)	¥	924,288		¥	207,973	¥	207,973	¥	1,132,261

Changes in net assets
Appropriation to reserve for special depreciation*		—		—		—		—		—		623			—		—		—		—		—		(623	)		—			—			—			—		—		—
Reversal of reserve for special depreciation*		—		—		—		—		—		(595	)		—		—		—		—		—		595			—			—			—			—		—		—
Appropriation to reserve for special depreciation		—		—		—		—		—		2			—		—		—		—		—		(2	)		—			—			—			—		—		—
Reversal of reserve for special depreciation		—		—		—		—		—		(623	)		—		—		—		—		—		623			—			—			—			—		—		—
Appropriation to general reserve*		—		—		—		—		—		—			—		—		—		—		50,000		(50,000	)		—			—			—			—		—		—
Dividends*		—		—		—		—		—		—			—		—		—		—		—		(9,387	)		(9,387	)		—			(9,387	)		—		—		(9,387	)
Dividends		—		—		—		—		—		—			—		—		—		—		—		(9,400	)		(9,400	)		—			(9,400	)		—		—		(9,400	)
Directors’ bonuses*		—		—		—		—		—		—			—		—		—		—		—		(68	)		(68	)		—			(68	)		—		—		(68	)
Net income		—		—		—		—		—		—			—		—		—		—		—		62,029			62,029			—			62,029			—		—		62,029
Purchase of treasury stock		—		—		—		—		—		—			—		—		—		—		—		—			—			(251	)		(251	)		—		—		(251	)
Reissuance of treasury stock		—		—		127		127		—		—			—		—		—		—		—		—			—			7,539			7,666			—		—		7,666
Net change in items other than stockholders’ equity		—		—		—		—		—		—			—		—		—		—		—		—			—			—			—			103,511		103,511		103,511
Total changes in net assets		—		—		127		127		—		(593	)		—		—		—		—		50,000		(6,233	)		43,174			7,288			50,589			103,511		103,511		154,100

Balance, March 31, 2007	¥	115,703	¥	192,555	¥	127	¥	192,682	¥	17,207	¥	991		¥	1,000	¥	1,000	¥	300	¥	1,000	¥	603,837	¥	63,012		¥	688,347		¥	(21,855	)	¥	974,877		¥	311,484	¥	311,484	¥	1,286,361

*	Appropriation of surplus for the annual stockholders’ meeting held in June 2006

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Appendix

Consolidated Orders and Production by Reporting Segment

Consolidated Orders by Reporting Segment


	(Yen in millions)
	Six months ended September 30,								Increase (Decrease) %
	2006				2007
	Amount		% of orders		Amount		% of orders
Fine Ceramic Parts Group	39,785		6.2		42,582		6.6		7.0
Semiconductor Parts Group	76,861		12.0		74,599		11.6		(2.9	)
Applied Ceramic Products Group	66,757		10.4		72,380		11.3		8.4
Electronic Device Group	147,734		23.1		151,647		23.7		2.6

Total Components Business	331,137		51.7		341,208		53.2		3.0
Telecommunications Equipment Group	129,231		20.2		108,498		16.9		(16.0	)
Information Equipment Group	124,136		19.4		137,544		21.5		10.8

Total Equipment Business	253,367		39.6		246,042		38.4		(2.9	)
Others	67,699		10.6		66,335		10.3		(2.0	)
Adjustments and eliminations	(12,021	)	(1.9	)	(12,239	)	(1.9	)	—

Orders	640,182		100.0		641,346		100.0		0.2

Note 1. From April 1, 2007, the “Optical Equipment Group,” previously a separate reporting segment, has been reclassified into “Others.” Accordingly, orders for the previous first half have been retroactively reclassified.

Note 2. For the reasons Note 1 above, orders of “Others” in the previous first half increased by ¥5,954 million and “Adjustments and eliminations” decreased by ¥(4) million compared with those previously announced.

Consolidated Production by Reporting Segment


	(Yen in millions)
	Six months ended September 30,				Increase (Decrease) %
	2006		2007
	Amount	% of production	Amount	% of production
Fine Ceramic Parts Group	38,959	6.1	42,082	6.6	8.0
Semiconductor Parts Group	77,929	12.2	74,253	11.7	(4.7	)
Applied Ceramic Products Group	65,436	10.2	72,168	11.4	10.3
Electronic Device Group	144,236	22.5	149,054	23.6	3.3

Total Components Business	326,560	51.0	337,557	53.3	3.4
Telecommunications Equipment Group	126,414	19.7	108,651	17.2	(14.1	)
Information Equipment Group	137,311	21.5	136,276	21.5	(0.8	)

Total Equipment Business	263,725	41.2	244,927	38.7	(7.1	)
Others	49,647	7.8	50,420	8.0	1.6

Production	639,932	100.0	632,904	100.0	(1.1	)

Note 3. For the reasons set forth Note 1 above, production of “Others” in the previous first half increased by ¥5,923 million compared with those previously announced.

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LOGO

October 30, 2007

KYOCERA CORPORATION

Consolidated Financial Highlights

Results for the Six Months Ended September 30, 2007


	(Yen in millions, except for per share amounts, exchange rates and number of employees)
	Six Months Ended September 30,		Increase (Decrease) (%)
	2006	2007	Increase (Decrease) (%)
Net sales	615,390	636,560	3.4
Profit from operations	63,128	67,823	7.4
Income from continuing operations before income taxes	72,385	81,480	12.6
Net income	53,493	50,620	(5.4	)
Average exchange rates :
US$	115	119	—
Euro	146	162	—
Earnings per share :
Net income
Basic	284.64	267.66	(6.0	)
Diluted	284.14	267.06	(6.0	)
Capital expenditures	37,239	32,592	(12.5	)
Depreciation	33,682	37,291	10.7
R&D expenses	30,257	31,060	2.7
Total assets	1,951,702	2,107,097	—
Stockholders’ equity	1,373,567	1,530,084	—
Sales of products manufactured outside Japan to net sales (%)	34.9	34.0	—
Number of employees	63,235	65,133	—

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October 30, 2007


Name of Listed Company:		Kyocera Corporation

Name of Representative:		Makoto Kawamura, President and Director

		(Code number: 6971; First Section of the Tokyo Stock Exchange;
		First Section of the Osaka Securities Exchange)

Person for Inquiry:		Akihiko Toyotani
		General Manager, Finance Division
		(Tel: 075-604-3500)

Notice regarding Revision of Amounts of Interim Dividend and Annual Total Dividend for the Fiscal

Period Ending March 31, 2008 (54th Fiscal Period)

This is to advise you that Kyocera Corporation (Kyocera) resolved at the meeting of its Board of Directors held on October 30, 2007 regarding its interim dividend and annual total dividend per share for the fiscal period ending March 31, 2008 as follows:

1. Reason for revision

Kyocera believes that the best way to increase corporate value and meet shareholders’ expectations is to improve consolidated performance into the future. Kyocera therefore strongly takes into consideration the linkage between dividend amounts and consolidated performance and has implemented a dividend policy aiming for a consolidated payout ratio of approximately 20% to 25%. In addition, Kyocera determines dividend amounts based on an overall assessment, taking into account various factors that include the amount of capital expenditures necessary for medium to long-term growth.

With respect to the interim consolidated result as announced today, net sales and operating profit as well as pre-tax income increased as compared with the corresponding six-month period in the previous fiscal period. With regard to the six months ending March 31, 2008, Kyocera expects firm demand in the digital consumer equipment market, and Kyocera therefore projects solid demand for components used in these products to continue. Based on those expectations regarding the market environment, Kyocera expects to be able to achieve its financial forecasts for the full fiscal period, with net income per share for the full fiscal period ending March 31, 2008 reaching 543.40 yen.

Kyocera had anticipated paying an amount of annual total dividends for the fiscal period ending March 31, 2008 of 110 yen per share (a payout ratio of 20.2%), which is the same amount as paid in the previous fiscal period ended March 31, 2007. However, taking into consideration its expected performance for the full fiscal period, including its results for the semi-annual period as stated above, Kyocera has decided to pay an interim dividend relating to the fiscal period ending March 31, 2008 in the amount of 60 yen per share, an increase of 10 yen from the interim dividend in the amount of 50 yen per share paid in the corresponding previous fiscal period. As a result, the total amount of dividends paid for the full fiscal period ending March 31, 2008 will be 120 yen per share, constituting a the payout ratio of 22.1%.

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2. Substance of revision

Fiscal period ending March 2008 (from April 1, 2007 to March 31, 2008)


	Dividend per Share
Record Dates	As of the end of the semi-annual period		As of the end of the full fiscal period		Annual total dividend
Forecast previously published (Announced on April 26, 2007)		Not Announced		Not Announced	¥	110
Revision made this time	¥	60	¥	60	¥	120
(c.f.) Dividends for previous fiscal period (Annual Period ended March 31, 2007)	¥	50	¥	60	¥	110

As of April 26, 2007, the date of the announcement of results for the fiscal period ended March 31, 2008, Kyocera announced a forecast of annual total dividends of 110 yen per share, but it did not make any announcement with respect to the interim dividend and the yea-end dividend.

3. Commencement date of Payment of interim dividend : December 5, 2007

Note. Forward-Looking Statements

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 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; 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; laws and regulations relating to the taxation, and to manufacturing and trade 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 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.

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