Edgar Filing: KYOCERA CORP

Form 6-K

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of August 2012

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):

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/ SHOICHI AOKI

Shoichi Aoki

Director,

Managing Executive Officer and

General Manager of

Corporate Financial and Business Systems

Administration Group

Date: August 1, 2012

Information furnished on this form:

EXHIBITS


Exhibit Number
1.		Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Three Months Ended June 30, 2012

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Three Months Ended June 30, 2012

The consolidated financial information is prepared in accordance with accounting principles generally accepted in the United States of America.

1. Consolidated Financial Results for the Three Months Ended June 30, 2012


(1) Consolidated results of operations										(% of change from previous period)
	Net sales					Profit (loss) from operations						Income before income taxes					Net income attributable to shareholders of Kyocera Corporation
	Million yen		%			Million yen			%			Million yen		%			Million yen		%
Three Months ended June 30, 2012		297,726		(2.5	)		(2,002	)		—			4,727		(88.2	)		6,570		(73.5	)
Three Months ended June 30, 2011		305,231		(2.5	)		33,313			(18.0	)		39,922		(13.8	)		24,804		(17.0	)

(Note) Comprehensive income (loss):

(25,765) million yen for the three months ended June 30, 2012 40,763 million yen for the three months ended June 30, 2011


	Net income attributable to shareholders of Kyocera Corporation per share -Basic		Net income attributable to shareholders of Kyocera Corporation per share -Diluted
	Yen		Yen
Three Months ended June 30, 2012		35.82		35.82
Three Months ended June 30, 2011		135.19		135.19

(2) Consolidated financial condition


	Total assets		Total equity		Kyocera Corporation shareholders’ equity		Kyocera Corporation shareholders’ equity to total assets
	Million yen		Million yen		Million yen		%
June 30, 2012		1,946,078		1,496,531		1,437,873		73.9
March 31, 2012		1,994,103		1,534,241		1,469,505		73.7

2. Dividends


	Dividends per share
	End of first quarter		End of second quarter		End of third quarter		Year-end		Annual
	Yen		Yen		Yen		Yen		Yen
Year ended March 31, 2012		—		60.00		—		60.00		120.00
Year ending March 31, 2013		—		—		—		—		120.00

(Note) Dividends per share for the year ending March 31, 2013 are forecasted to be 120.00 yen on an annual basis.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013 (Fiscal 2013)

(% of change from previous year)


	Net sales				Profit from operations				Income before income taxes				Net income attributable to shareholders of Kyocera Corporation				Net income attributable to shareholders of Kyocera Corporation per share
	Million yen		%		Million yen		%		Million yen		%		Million yen		%		Yen
Fiscal 2013		1,370,000		15.0		118,700		21.5		129,900		13.1		86,400		8.9		470.99

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the three months ended June 30, 2012.

– 1 –

(Notes)

(1) Increase or decrease in significant subsidiaries during the three months ended June 30, 2012: None.

(2) Adoption of concise quarterly accounting method or procedure: None.

(3) Changes in accounting policies:

(i)

Changes due to adoption of new accounting standards: Please refer to the accompanying “2. OTHER INFORMATION” on page 12.

(ii)

Changes due to other than adoption of new accounting standards: None.

(4) Number of shares (common stock):

(i)

Number of shares issued:


191,309,290 shares at June 30, 2012		191,309,290 shares at March 31, 2012

(ii)

Number of treasury stock:


7,866,023 shares at June 30, 2012		7,865,370 shares at March 31, 2012

(iii)

Average number of shares outstanding:


183,443,564 shares for the three months ended June 30, 2012		183,468,445 shares for the three months ended June 30, 2011

Presentation of Situation of Review Procedure

The consolidated financial information included in this report is out of scope of review procedure under the Financial Instruments and Exchange Law of Japan. Review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.

Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 11.

– 2 –

Accompanying Information

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Three Months Ended June 30, 2012

Economic Situation and Business Environment

During the three months ended June 30, 2012 (“the first quarter”), the Japanese economy expanded moderately due primarily to growth in personal consumption and an increase in public investment aimed at driving recovery following the Great East Japan Earthquake. Overseas, although the U.S. economy was on a recovery track, concerns of a recession in Europe grew as the financial crisis worsened. The Chinese economy continued to expand strongly despite a slowdown in growth of exports and domestic demand.

In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”), production activities mainly for smartphones and tablet PCs were on a recovery trend, which led to an increase in demand for components used in these products compared with the fourth quarter of the previous fiscal year (the three months ended March 31, 2012), while demand was down compared with the three months ended June 30, 2011 (“the previous first quarter”).

Consolidated Financial Results

Average exchange rates for the first quarter were ¥80 to the U.S. dollar, marking appreciation of ¥2 (approximately 2%) from ¥82 in the previous first quarter, and ¥103 to the Euro, marking appreciation of ¥14 (approximately 12%) from ¥117 in the previous first quarter. As a result, net sales and income before income taxes for the first quarter were adversely affected by approximately ¥9 billion and ¥3 billion, respectively, compared with the previous first quarter.

Despite contributions of Unimerco Group A/S (currently Kyocera Unimerco A/S), a Danish-based industrial cutting tool manufacturing and sales company and Optrex Corporation (currently Kyocera Display Corporation), a specialized manufacturer of LCDs and related products, which became consolidated subsidiaries of Kyocera in July 2011 and February 2012, respectively, consolidated net sales for the first quarter decreased by ¥7,505 million, or 2.5%, to ¥297,726 million, compared with ¥305,231 million recorded in the previous first quarter, due mainly to a decline in sales of mobile phone handsets and of components for digital consumer equipment in addition to the yen’s appreciation.

A loss from operations was recorded for the first quarter of ¥ 2,002 million, a decrease of ¥35,315 million compared with ¥33,313 million of profit from operations in the previous first quarter due to the recording at AVX Corporation, a U.S.-based subsidiary, of a charge of ¥21,300 million for environmental remediation in New Bedford Harbor, Massachusetts in the U.S., in addition to the decline in sales and the impact of the yen’s appreciation. Income before income taxes decreased by ¥35,195 million, or 88.2%, to ¥4,727 million, compared with ¥39,922 million in the previous first quarter. Net income attributable to shareholders of Kyocera Corporation for the first quarter decreased by ¥18,234 million, or 73.5%, to ¥6,570 million, compared with ¥24,804 million in the previous first quarter.

For the environmental remediation charge at AVX Corporation, please refer to page 8.


	Three months ended June 30,										Increase (Decrease)
	2011				2012						Increase (Decrease)
	Amount		%		Amount			%			Amount			%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	305,231		100.0	¥	297,726			100.0		¥	(7,505	)		(2.5	)
Profit (loss) from operations		33,313		10.9		(2,002	)		(0.7	)		(35,315	)		—
Income before income taxes		39,922		13.1		4,727			1.6			(35,195	)		(88.2	)
Net income attributable to shareholders of Kyocera Corporation		24,804		8.1		6,570			2.2			(18,234	)		(73.5	)
Diluted earnings per share attributable to shareholders of Kyocera Corporation		135.19		—		35.82			—			—			—
Average US$ exchange rate		82		—		80			—			—			—
Average Euro exchange rate		117		—		103			—			—			—

– 3 –

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Despite moderate recovery in demand for components used in industrial machinery, particularly for semiconductor fabrication equipment, and in digital consumer equipment markets, sales still fell short of those recorded in the previous first quarter. As a result, sales and operating profit in this reporting segment decreased compared with the previous first quarter.

2) Semiconductor Parts Group

Although component demand for digital consumer equipment, particularly smartphones, was on a growth track as a result of progress in inventory adjustments at equipment manufacturers, sales were still below levels recorded in the previous first quarter. Coupled with this, weak component demand for server-related markets led to a decline in sales and operating profit in this reporting segment compared with the previous first quarter.

3) Applied Ceramic Products Group

Sales in the cutting tool business increased compared with the previous first quarter due in part to solid demand in the automotive market in addition to the contribution of Kyocera Unimerco A/S. In contrast, sales in the solar energy business decreased compared with the previous first quarter due in part to weak demand in overseas markets, particularly Europe, combined with the impact of a significant decline in product prices worldwide. As a result, sales and operating profit in this reporting segment decreased compared with the previous first quarter.

4) Electronic Device Group

Sales in this reporting segment increased compared with the previous first quarter due to the contribution of Kyocera Display Corporation. Operating loss was recorded, however, due to the recording of the environmental remediation charge at AVX Corporation in addition to a decline in sales of components for digital consumer equipment.

5) Telecommunications Equipment Group

Sales in this reporting segment decreased compared with the previous first quarter due primarily to a decline in sales of mobile phone handsets overseas. Operating loss decreased compared with the previous first quarter due to the effects of cost reductions, despite the recording of a write-down on inventory.

6) Information Equipment Group

The number of units of multifunctional machines sold, particularly in Europe and the United States, increased as a result of efforts to expand sales of new products. Sales and operating profit in this reporting segment decreased compared with the previous first quarter, however, due to accelerated depreciation of the Euro.

7) Others

Despite growth in sales at Kyocera Communication Systems Co., Ltd., sales at Kyocera Chemical Corporation etc., decreased compared with the previous first quarter, and as a result, sales in this reporting segment as a whole decreased compared with the previous first quarter. Operating profit increased compared with the previous first quarter, however, due to cost reduction efforts.

– 4 –

Net Sales by Reporting Segment


	Three months ended June 30,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	20,515			6.7		¥	19,069			6.4		¥	(1,446	)		(7.0	)
Semiconductor Parts Group		40,775			13.3			38,400			12.9			(2,375	)		(5.8	)
Applied Ceramic Products Group		45,435			14.9			42,600			14.3			(2,835	)		(6.2	)
Electronic Device Group		59,417			19.5			69,891			23.5			10,474			17.6

Total Components Business		166,142			54.4			169,960			57.1			3,818			2.3
Telecommunications Equipment Group		48,949			16.1			41,521			14.0			(7,428	)		(15.2	)
Information Equipment Group		60,190			19.7			58,483			19.6			(1,707	)		(2.8	)

Total Equipment Business		109,139			35.8			100,004			33.6			(9,135	)		(8.4	)
Others		36,269			11.9			34,689			11.6			(1,580	)		(4.4	)
Adjustments and eliminations		(6,319	)		(2.1	)		(6,927	)		(2.3	)		(608	)		—

Net sales	¥	305,231			100.0		¥	297,726			100.0		¥	(7,505	)		(2.5	)

Operating Profit (Loss) by Reporting Segment


	Three months ended June 30,										Increase (Decrease)
	2011					2012					Increase (Decrease)
	Amount			%*		Amount			%*		Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	3,452			16.8	¥	2,334			12.2	¥	(1,118	)		(32.4	)
Semiconductor Parts Group		9,305			22.8		5,705			14.9		(3,600	)		(38.7	)
Applied Ceramic Products Group		4,311			9.5		1,483			3.5		(2,828	)		(65.6	)
Electronic Device Group		9,406			15.8		(17,503	)		—		(26,909	)		—

Total Components Business		26,474			15.9		(7,981	)		—		(34,455	)		—
Telecommunications Equipment Group		(741	)		—		(206	)		—		535			—
Information Equipment Group		7,614			12.6		5,702			9.7		(1,912	)		(25.1	)

Total Equipment Business		6,873			6.3		5,496			5.5		(1,377	)		(20.0	)
Others		794			2.2		1,244			3.6		450			56.7

Operating profit (loss)		34,141			11.2		(1,241	)		—		(35,382	)		—
Corporate gains and Equity in earnings of affiliates and unconsolidated subsidiaries		5,950			—		6,030			—		80			1.3
Adjustments and eliminations		(169	)		—		(62	)		—		107			—

Income before income taxes	¥	39,922			13.1	¥	4,727			1.6	¥	(35,195	)		(88.2	)

*	% to net sales of each corresponding segment

– 5 –

Net Sales by Geographic Area

1) Japan

Sales for Japan for the first quarter decreased slightly compared with the previous first quarter due to a decline in sales prices in the solar energy business and weak demand for components used for digital consumer equipment, which were more than enough to offset the contribution of Kyocera Display Corporation.

2) Asia

Sales for Asia for the first quarter decreased slightly compared with the previous first quarter due to a decline in sales of components for digital consumer equipment, which was more than enough to offset an increase in sales in the solar energy business.

3) United States of America

Sales for the United States of America for the first quarter increased compared with the previous first quarter despite decreased sales of mobile phone handsets, due to the contribution of Kyocera Display Corporation.

4) Europe

Sales for Europe for the first quarter decreased compared with the previous first quarter due to decreased demand and a decline in sales prices in the solar energy business in addition to the adverse impact of the yen’s appreciation against the Euro.

5) Others

Sales for Others decreased for the first quarter compared with the previous first quarter due to decreased demand for components for digital consumer equipment coupled with a decline in sales from the Information Equipment Group.


	Three months ended June 30,								Increase (Decrease)
	2011				2012				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions)
Japan	¥	134,232		44.0	¥	133,111		44.7	¥	(1,121	)		(0.8	)
Asia		55,731		18.3		55,527		18.7		(204	)		(0.4	)
United States of America		46,750		15.3		49,498		16.6		2,748			5.9
Europe		53,271		17.4		47,166		15.8		(6,105	)		(11.5	)
Others		15,247		5.0		12,424		4.2		(2,823	)		(18.5	)

Net sales	¥	305,231		100.0	¥	297,726		100.0	¥	(7,505	)		(2.5	)

– 6 –

(2) Consolidated Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at June 30, 2012 decreased by ¥4,642 million to ¥268,646 million from ¥273,288 million at March 31, 2012.

1) Cash flows from operating activities

Net cash provided by operating activities in the first quarter increased by ¥8,956 million to ¥28,687 million from ¥19,731 million for the previous first quarter. This was due mainly to a decrease in cash outflows related to change in inventories and an increase in cash inflows related to change in other non-current liabilities which exceeded a significant decrease in net income.

2) Cash flows from investing activities

Net cash used in investing activities in the first quarter increased by ¥2,509 million to ¥17,624 million from ¥15,115 million for the previous first quarter. This was due mainly to a decrease in proceeds from sales and maturities of securities exceeded a decrease in payments for purchases of securities and property, plant and equipment.

3) Cash flows from financing activities

Net cash used in financing activities in the first quarter decreased by ¥4,214million to ¥9,724 million from ¥13,938 million for the previous first quarter. This was due mainly to a decrease in payments of long-term debts and a decrease in dividends paid.


	Three months ended June 30,
	2011			2012
	(Yen in millions)
Cash flows from operating activities	¥	19,731		¥	28,687
Cash flows from investing activities		(15,115	)		(17,624	)
Cash flows from financing activities		(13,938	)		(9,724	)
Effect of exchange rate changes on cash and cash equivalents		(2,295	)		(5,981	)
Net decrease in cash and cash equivalents		(11,617	)		(4,642	)
Cash and cash equivalents at beginning of period		273,471			273,288
Cash and cash equivalents at end of period	¥	261,854		¥	268,646

– 7 –

(3) The recording of an additional charge for environmental remedial work in New Bedford Harbor, Massachusetts in the U.S. at AVX Corporation

As discussed in Kyocera’s Annual Report on Form 20-F for the year ended March 31, 2012, on April 18, 2012, the Environmental Protection Agency (EPA) issued an enforcement order to AVX Corporation to implement certain remedial work at the New Bedford Harbor Superfund Site in Massachusetts. An alleged legal predecessor company, Aerovox Corporation, produced liquid filled capacitors adjacent to the harbor from the late 1930s through the early 1970s. Subsequent owners of the facility are dissolved or in bankruptcy. AVX Corporation itself has never produced this type of capacitor, nor does it do so today. AVX Corporation has been in mediation with the EPA and other government agencies in order to resolve this matter. AVX Corporation recorded an additional pre-tax charge of $266 million related to this matter in the results for the first quarter in order to increase its current estimate of potential liability to $366 million. Kyocera included ¥21,300 million ($266 million) of this additional charge into selling, general and administrative expenses in the consolidated statements of income for the first quarter.

– 8 –

(4) Consolidated Forecasts for the Year Ending March 31, 2013 (“fiscal 2013”)

Kyocera expects component demand particularly for smartphones and tablet PCs to expand from the second quarter (the three months from July 1 to September 30, 2012) despite continued concerns over prolonged financial problems in Europe and exchange rate trends. In addition, demand for solar power generating systems is expected to increase spurred by the commencement of the new Japanese feed-in tariff for renewable energy from July 2012. As a result, the business environment is expected to improve.

The full-year profit forecasts for fiscal 2013 have been revised from projections announced on April 26, 2012, as shown below, by taking into account the recording of an environmental remediation charge of ¥21,300 million at AVX Corporation in the first quarter. Kyocera has also revised forecasts of the average exchange rates from the second quarter onward to ¥78 to the U.S. dollar and ¥95 to the Euro. Consequently, forecasts of the average exchange rates for fiscal 2013 have changed to ¥79 to the U.S. dollar and ¥97 to the Euro.


	Results for the year ended March 31, 2012				Forecasts for the year ending March 31, 2013 announced on								Increase (Decrease) to Results
	Results for the year ended March 31, 2012				April 26, 2012 (Previous)				August 1, 2012 (Revised)				Increase (Decrease) to Results
	Amount		%		Amount		%		Amount		%		%
	(Yen in millions, except exchange rates)
Net sales	¥	1,190,870		100.0	¥	1,370,000		100.0	¥	1,370,000		100.0		15.0
Profit from operations		97,675		8.2		140,000		10.2		118,700		8.7		21.5
Income before income taxes		114,893		9.6		151,200		11.0		129,900		9.5		13.1
Net income attributable to shareholders of Kyocera Corporation		79,357		6.7		96,000		7.0		86,400		6.3		8.9
Average US$ exchange rate		79		—		80		—		79		—		—
Average Euro exchange rate		109		—		105		—		97		—		—

– 9 –

Net Sales by Reporting Segment


	Results for the year ended March 31, 2012						Forecasts for the year ending March 31, 2013 announced on April 26, 2012										Increase (Decrease) to Results
	Amount			%			Amount					%					%
	(Yen in millions)
Fine Ceramic Parts Group	¥	80,372			6.7		¥			90,000			6.6					12.0
Semiconductor Parts Group		153,420			12.9			180,000					13.1					17.3
Applied Ceramic Products Group		179,784			15.1			220,000					16.1					22.4
Electronic Device Group		228,721			19.2			310,000					22.6					35.5

Total Components Business		642,297			53.9			800,000					58.4					24.6
Telecommunications Equipment Group		178,669			15.0			180,000					13.1					0.7
Information Equipment Group		243,457			20.4			259,000					18.9					6.4

Total Equipment Business		422,126			35.4			439,000					32.0					4.0
Others		151,987			12.8			160,000					11.7					5.3
Adjustments and eliminations		(25,540	)		(2.1	)				(29,000	)				(2.1	)		—

Net sales	¥	1,190,870			100.0		¥			1,370,000			100.0					15.0

Operating Profit by Reporting Segment
	Results for the year ended March 31, 2012						Forecasts for the year ending March 31, 2013 announced on										Increase (Decrease) to Results
	Results for the year ended March 31, 2012						April 26, 2012 (Previous)					August 1, 2012 (Revised)					Increase (Decrease) to Results
	Amount			%*			Amount		%*			Amount		%*			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	12,622			15.7		¥	14,100		15.7		¥	14,100		15.7			11.7
Semiconductor Parts Group		27,754			18.1			32,600		18.1			32,600		18.1			17.5
Applied Ceramic Products Group		6,459			3.6			17,000		7.7			17,000		7.7			163.2
Electronic Device Group		16,036			7.0			27,000		8.7			5,700		1.8			(64.5	)

Total Components Business		62,871			9.8			90,700		11.3			69,400		8.7			10.4
Telecommunications Equipment Group		1,469			0.8			9,000		5.0			9,000		5.0			512.7
Information Equipment Group		29,451			12.1			29,500		11.4			29,500		11.4			0.2

Total Equipment Business		30,920			7.3			38,500		8.8			38,500		8.8			24.5
Others		8,054			5.3			10,000		6.3			10,000		6.3			24.2

Operating profit		101,845			8.6			139,200		10.2			117,900		8.6			15.8
Corporate and others		13,048			—			12,000		—			12,000		—			(8.0	)

Income before income taxes	¥	114,893			9.6		¥	151,200		11.0		¥	129,900		9.5			13.1

*	% to net sales of each corresponding segment

– 10 –

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 the following:

(1)	General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia;

(2)	Economic, political and legal conditions and unexpected changes therein in countries or areas where we operate;

(3)	Factors that may affect our exports, including a strong yen, political and economic instability, customs, and inadequate protection of our intellectual property;

(4)	Fluctuation in exchange rates that may affect the value of our foreign assets or the prices of our products;

(5)	Intensified competition in product pricing, technological innovation, R&D activities, product quality and speed of delivery;

(6)	Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

(7)	Shortages and rising costs of electricity affecting our production and sales activities;

(8)	The possibility that expansion of production capacity and in-process R&D activities may not produce the desired results;

(9)	The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect;

(10)	Inability to secure skilled employees, particularly engineering and technical personnel;

(11)	The possibility of divulgence of our trade secrets and infringement of our intellectual property rights;

(12)	The possibility that we may receive notice of claims of infringement of other parties’ intellectual property rights and claims for royalty payments;

(13)	Increases in our environmental liability and in costs and expenses required to observe obligations imposed by environmental laws and regulations in Japan and other countries;

(14)	Unintentional conflict with laws and regulations or newly enacted laws and regulations may limit our business operations;

(15)	Events that may negatively impact our markets or supply chain, including terrorist acts, plague, war and similar events;

(16)	Earthquakes and other related natural disasters affecting our operational facilities and our markets or supply chain, as well as social and economic infrastructure;

(17)	Exposure to difficulties in collection of trade receivables due to customers’ worsening financial condition;

(18)	The possibility of recognition of impairment losses on investment securities held by us due to declines in their value;

(19)	The possibility that we may record impairment losses on long-lived assets, goodwill and intangible assets;

(20)	The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be incurred; and

(21)	Changes in accounting principles.

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

– 11 –

2. OTHER INFORMATION

Changes in accounting policies

Recently Adopted Accounting Standards

On April 1, 2012, Kyocera adopted the Financial Accounting Standards Board (FASB)’s ASU No. 2011-05, “Presentation of Comprehensive Income” and ASU No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.” In presenting other comprehensive income and its components in financial statement, this accounting standard eliminates the current option which is to present the components of other comprehensive income as part of the statement of equity. This standard also requires reclassifications between other comprehensive income and net income to be disclosed on the face of financial statements, however, the effective date of this requirement is deferred by ASU No. 2011-12.

As these accounting standards are a provision for presentation, the adoption of these accounting standards will not have an impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On April 1, 2012, Kyocera adopted the FASB’s ASU No. 2011-08, “Testing Goodwill for Impairment.” This accounting standard permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. As this accounting standard does not actually change how the impairment would be calculated, the adoption of this accounting standard will not have an impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

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3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)


	March 31, 2012					June 30, 2012					Increase (Decrease)
	Amount			%		Amount			%		Increase (Decrease)
	(Yen in millions)
Current assets:
Cash and cash equivalents	¥	273,288				¥	268,646				¥	(4,642	)
Short-term investments in debt and equity securities		47,175					50,916					3,741
Other short-term investments		158,765					155,464					(3,301	)
Trade notes receivables		19,349					22,714					3,365
Trade accounts receivables		225,578					215,578					(10,000	)
Less allowances for doubtful accounts and sales returns		(4,583	)				(4,478	)				105
Inventories		270,336					261,556					(8,780	)
Advance payments		68,685					67,995					(690	)
Deferred income taxes		45,049					44,024					(1,025	)
Other current assets		40,961					37,245					(3,716	)

Total current assets		1,144,603			57.4		1,119,660			57.5		(24,943	)

Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities		372,779					355,658					(17,121	)
Other long-term investments		19,098					18,700					(398	)

Total investments and advances		391,877			19.6		374,358			19.2		(17,519	)

Property, plant and equipment:
Land		60,600					60,082					(518	)
Buildings		301,911					298,663					(3,248	)
Machinery and equipment		719,146					720,191					1,045
Construction in progress		17,035					13,272					(3,763	)
Less accumulated depreciation		(838,155	)				(835,525	)				2,630

Total property, plant and equipment		260,537			13.1		256,683			13.2		(3,854	)

Goodwill		89,039			4.5		86,560			4.5		(2,479	)
Intangible assets		49,653			2.5		46,013			2.4		(3,640	)
Other assets		58,394			2.9		62,804			3.2		4,410

Total non-current assets		849,500			42.6		826,418			42.5		(23,082	)

Total assets	¥	1,994,103			100.0	¥	1,946,078			100.0	¥	(48,025	)

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	March 31, 2012					June 30, 2012					Increase (Decrease)
	Amount			%		Amount			%		Increase (Decrease)
	(Yen in millions)
Current liabilities:
Short-term borrowings	¥	4,062				¥	5,740				¥	1,678
Current portion of long-term debt		10,610					9,520					(1,090	)
Trade notes and accounts payable		102,699					100,705					(1,994	)
Other notes and accounts payable		60,993					56,293					(4,700	)
Accrued payroll and bonus		49,880					40,320					(9,560	)
Accrued income taxes		13,496					9,472					(4,024	)
Other accrued liabilities		29,940					30,924					984
Other current liabilities		29,368					28,538					(830	)

Total current liabilities		301,048			15.1		281,512			14.5		(19,536	)

Non-current liabilities:
Long-term debt		21,197					19,313					(1,884	)
Accrued pension and severance liabilities		32,441					30,484					(1,957	)
Deferred income taxes		90,179					83,417					(6,762	)
Other non-current liabilities		14,997					34,821					19,824

Total non-current liabilities		158,814			8.0		168,035			8.6		9,221

Total liabilities		459,862			23.1		449,547			23.1		(10,315	)

Kyocera Corporation shareholders’ equity:
Common stock		115,703					115,703					—
Additional paid-in capital		162,617					162,737					120
Retained earnings		1,324,052					1,319,615					(4,437	)
Accumulated other comprehensive income		(81,639	)				(108,949	)				(27,310	)
Treasury stock, at cost		(51,228	)				(51,233	)				(5	)

Total Kyocera Corporation shareholders’ equity		1,469,505			73.7		1,437,873			73.9		(31,632	)

Noncontrolling interests		64,736			3.2		58,658			3.0		(6,078	)

Total equity		1,534,241			76.9		1,496,531			76.9		(37,710	)

Total liabilities and equity	¥	1,994,103			100.0	¥	1,946,078			100.0	¥	(48,025	)

Note: Accumulated other comprehensive income is as follows:


	March 31, 2012			June 30, 2012			Increase (Decrease)
	(Yen in millions)
Net unrealized gains on securities	¥	40,735		¥	29,902		¥	(10,833	)
Net unrealized losses on derivative financial instruments		(70	)		(26	)		44
Pension adjustments		(12,290	)		(12,385	)		(95	)
Foreign currency translation adjustments		(110,014	)		(126,440	)		(16,426	)
Total	¥	(81,639	)	¥	(108,949	)	¥	(27,310	)

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(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)

Consolidated Statements of Income


	Three months ended June 30,												Increase (Decrease)
	2011						2012						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions and shares in thousands, except per share amounts)
Net sales	¥	305,231			100.0		¥	297,726			100.0		¥	(7,505	)		(2.5	)
Cost of sales		215,891			70.7			222,925			74.9			7,034			3.3

Gross profit		89,340			29.3			74,801			25.1			(14,539	)		(16.3	)
Selling, general and administrative expenses		56,027			18.4			76,803			25.8			20,776			37.1

Profit (loss) from operations		33,313			10.9			(2,002	)		(0.7	)		(35,315	)		—
Other income (expenses) :
Interest and dividend income		5,818			1.9			6,230			2.1			412			7.1
Interest expense		(515	)		(0.2	)		(433	)		(0.1	)		82			—
Foreign currency transaction gains, net		1,337			0.5			1,099			0.4			(238	)		(17.8	)
Other, net		(31	)		(0.0	)		(167	)		(0.1	)		(136	)		—

Total other income (expenses)		6,609			2.2			6,729			2.3			120			1.8

Income before income taxes		39,922			13.1			4,727			1.6			(35,195	)		(88.2	)
Income taxes		13,180			4.3			950			0.3			(12,230	)		(92.8	)

Net income		26,742			8.8			3,777			1.3			(22,965	)		(85.9	)
Net income attributable to noncontrolling interests		(1,938	)		(0.7	)		2,793			0.9			4,731			—

Net income attributable to shareholders of Kyocera Corporation	¥	24,804			8.1		¥	6,570			2.2		¥	(18,234	)		(73.5	)

Earnings per share:
Net income attributable to shareholders of Kyocera Corporation:
Basic	¥	135.19					¥	35.82
Diluted		135.19						35.82
Average number of shares of common stock outstanding:
Basic		183,468						183,444
Diluted		183,468						183,444

Note:

Basic earnings per share attributable to shareholders of Kyocera Corporation was computed based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation was computed based on the diluted average number of shares of stock outstanding during each period.

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Consolidated Statements of Comprehensive Income


	Three months ended June 30,						Increase (Decrease)
	2011			2012			Increase (Decrease)
	Amount			Amount			Amount
	(Yen in millions)
Net income	¥	26,742		¥	3,777		¥	(22,965	)

Other comprehensive income (loss)—net of taxes
Net unrealized gains (losses) on securities		20,848			(10,840	)		(31,688	)
Net unrealized gains on derivative financial instruments		22			67			45
Pension adjustments		(323	)		(94	)		229
Foreign currency translation adjustments		(6,526	)		(18,675	)		(12,149	)

Total other comprehensive income (loss)		14,021			(29,542	)		(43,563	)

Comprehensive income (loss)		40,763			(25,765	)		(66,528	)
Comprehensive income (loss) attributable to noncontrolling interests		(863	)		5,079			5,942

Comprehensive income (loss) attributable to shareholders of Kyocera Corporation	¥	39,900		¥	(20,686	)	¥	(60,586	)

(3) Cautionary Statement for Premise of a Going Concern

None.

(4) Cautionary Statement for Significant Changes in Equity

None.

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