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Kyocera Corporation Financial Presentation

For the Three Months Ended June 30, 2025

Date: July 30, 2025

Presented by: Hideo Tanimoto, President and Representative Director

Table of Contents

  • 01. Financial Results for 1Q of Fiscal 2026
  • 02. Financial Forecasts for Fiscal 2026
  • 03. Progress of Structural Reforms and Capital Strategies, etc.
  • 04. [Reference] Supplementary Information

Notes: This document is an English translation of the Japanese original, provided for convenience. The Japanese original shall prevail in case of any discrepancies. Certain statements are forward-looking, based on current assumptions and beliefs. Fiscal 2025 refers to the year ended March 31, 2025, and Fiscal 2026 refers to the year ending March 31, 2026. 1Q refers to the three months ended June 30.

Kyocera has reclassified its business segments starting from fiscal 2026. Figures for change rates and business profit ratios are calculated based on millions of Yen.

01. Financial Results for 1Q of Fiscal 2026

Summary Table:

MetricFiscal 2025 1QFiscal 2026 1QChange (Amount)Change (%)
Sales Revenue498,868 million Yen478,038 million Yen-20,830 million Yen-4.2%
Operating Profit20,956 million Yen (4.2% of sales)18,550 million Yen (3.9% of sales)-2,406 million Yen-11.5%
Profit Before Income Taxes47,765 million Yen (9.6% of sales)44,563 million Yen (9.3% of sales)-3,202 million Yen-6.7%
Profit Attributable to Owners of the Parent36,797 million Yen (7.4% of sales)37,143 million Yen (7.8% of sales)346 million Yen0.9%
Average Exchange Rate (US$)156 Yen145 Yen
Average Exchange Rate (Euro)168 Yen164 Yen

Additional Information:

  • Impact from Change in Exchange Rates (Yen Appreciation): Sales Revenue decreased by approx. -22.0 Billion Yen. Operating Profit and Profit Before Income Taxes decreased by approx. -1.7 Billion Yen.
  • One-time Cost: Incurred approx. -2.1 Billion Yen related to the transfer of the Silicon Diode Power Semiconductor Business, affecting Operating Profit and Profit Before Income Taxes.
  • Tax Expense Adjustment: Due to the sale of KDDI shares, Profit Attributable to Owners of the Parent increased by approx. +4.0 Billion Yen.

Sales Revenue Breakdown (1Q Fiscal 2026 vs 1Q Fiscal 2025):

  • Core Components Business: Sales Revenue was 145,856 million Yen (30.5% of total) in 1Q Fiscal 2026, an increase of 768 million Yen (0.5%) from 145,088 million Yen (29.1%) in 1Q Fiscal 2025.
    • Industrial & Automotive Components Unit: 65,270 million Yen (13.6%) in 1Q FY26 vs 65,722 million Yen (13.2%) in 1Q FY25 (-0.7%).
    • Semiconductor Components Unit: 74,519 million Yen (15.6%) in 1Q FY26 vs 73,597 million Yen (14.7%) in 1Q FY25 (1.3%).
    • Others: 6,067 million Yen (1.3%) in 1Q FY26 vs 5,769 million Yen (1.2%) in 1Q FY25 (5.2%).
  • Electronic Components Business: Sales Revenue was 83,864 million Yen (17.6%) in 1Q Fiscal 2026, a decrease of -5,848 million Yen (-6.5%) from 89,712 million Yen (18.0%) in 1Q Fiscal 2025.
  • Solutions Business: Sales Revenue was 253,007 million Yen (52.9%) in 1Q Fiscal 2026, a decrease of -16,035 million Yen (-6.0%) from 269,042 million Yen (53.9%) in 1Q Fiscal 2025.
    • Industrial Tools Unit: 80,038 million Yen (16.7%) in 1Q FY26 vs 85,865 million Yen (17.2%) in 1Q FY25 (-6.8%).
    • Document Solutions Unit: 107,415 million Yen (22.5%) in 1Q FY26 vs 115,037 million Yen (23.0%) in 1Q FY25 (-6.6%).
    • Communications Unit: 45,586 million Yen (9.5%) in 1Q FY26 vs 51,318 million Yen (10.3%) in 1Q FY25 (-11.2%).
    • Others: 19,968 million Yen (4.2%) in 1Q FY26 vs 16,822 million Yen (3.4%) in 1Q FY25 (18.7%).
    • Others (second mention): 3,430 million Yen (0.7%) in 1Q FY26 vs 4,214 million Yen (0.8%) in 1Q FY25 (-18.6%).
  • Adjustments and Eliminations: -8,119 million Yen (-1.7%) in 1Q Fiscal 2026 vs -9,188 million Yen (-1.8%) in 1Q Fiscal 2025 (1,069 million Yen change).

Business Profit (Loss) Breakdown (1Q Fiscal 2026 vs 1Q Fiscal 2025):

  • Core Components Business: Profit was 14,188 million Yen (9.7% of sales) in 1Q FY26, up 1,271 million Yen (9.8%) from 12,917 million Yen (8.9%) in 1Q FY25.
    • Industrial & Automotive Components Unit: 7,777 million Yen (11.9%) in 1Q FY26 vs 6,172 million Yen (9.4%) in 1Q FY25 (26.0% change).
    • Semiconductor Components Unit: 6,236 million Yen (8.4%) in 1Q FY26 vs 6,472 million Yen (8.8%) in 1Q FY25 (-3.6% change).
    • Others: 175 million Yen (2.9%) in 1Q FY26 vs 273 million Yen (4.7%) in 1Q FY25 (-35.9% change).
  • Electronic Components Business: Profit was -3,008 million Yen (negative profit) in 1Q FY26, compared to 1,055 million Yen (1.2% of sales) in 1Q FY25, a change of -4,063 million Yen.
  • Solutions Business: Profit was 18,879 million Yen (7.5% of sales) in 1Q FY26, a decrease of -690 million Yen (-3.5%) from 19,569 million Yen (7.3%) in 1Q FY25.
    • Industrial Tools Unit: 6,551 million Yen (8.2%) in 1Q FY26 vs 6,010 million Yen (7.0%) in 1Q FY25 (9.0% change).
    • Document Solutions Unit: 9,753 million Yen (9.1%) in 1Q FY26 vs 11,340 million Yen (9.9%) in 1Q FY25 (-14.0% change).
    • Communications Unit: 206 million Yen (0.5%) in 1Q FY26 vs 679 million Yen (1.3%) in 1Q FY25 (-69.7% change).
    • Others: 2,369 million Yen (11.9%) in 1Q FY26 vs 1,540 million Yen (9.2%) in 1Q FY25 (53.8% change).
    • Others (second mention): -10,129 million Yen in 1Q FY26 vs -11,388 million Yen in 1Q FY25 (1,259 million Yen change).
  • Total Business Profit: 19,930 million Yen (4.2% of sales) in 1Q FY26, a decrease of -2,223 million Yen (-10.0%) from 22,153 million Yen (4.4%) in 1Q FY25.
  • Corporate Gains and Others: 24,633 million Yen in 1Q FY26 vs 25,612 million Yen in 1Q FY25 (-979 million Yen change, -3.8%).
  • Profit Before Income Taxes: 44,563 million Yen (9.3% of sales) in 1Q FY26, a decrease of -3,202 million Yen (-6.7%) from 47,765 million Yen (9.6%) in 1Q FY25.

Quarterly Trends (Fiscal 2025 vs Fiscal 2026 1Q):

  • Sales Revenue: Showed a trend of 498.9B (1Q FY25), 499.7B (2Q FY25), 493.5B (3Q FY25), 522.4B (4Q FY25), and 478.0B (1Q FY26).
  • Operating Profit: Showed a trend of 21.0B (4.2%) (1Q FY25), 16.9B (3.4%) (2Q FY25), 15.0B (2.9%) (4Q FY25), and 18.6B (3.9%) (1Q FY26).
  • Profit Before Income Taxes: Showed a trend of 47.8B (9.6%) (1Q FY25), 4.0B (0.8%) (2Q FY25), -1.3B (negative profit) (3Q FY25), 13.1B (2.5%) (4Q FY25), and 44.6B (9.3%) (1Q FY26).
  • Profit Attributable to Owners of the Parent: Showed a trend of 36.8B (7.4%) (1Q FY25), -0.7B (negative profit) (2Q FY25), 5.8B (1.1%) (4Q FY25), and 37.1B (7.8%) (1Q FY26).

Core Components Business Quarterly Trends:

  • Sales Revenue: Stacked bar chart shows breakdown by Industrial & Automotive Components Unit, Semiconductor Components Unit, and Others. Total sales were 145.1B (1Q FY25) to 145.9B (1Q FY26).
  • Profit Before Income Taxes: Line chart shows profit ratio trends. Profit was 12.9B (8.9%) in 1Q FY25, dropping to 4.1B (2.8%) in 2Q FY25, then recovering to 14.2B (9.7%) in 1Q FY26.

Electronic Components Business Quarterly Trends:

  • Sales Revenue: Bar chart shows sales from 89.7B (1Q FY25) to 83.9B (1Q FY26), a decrease of 6.5%.
  • Profit Before Income Taxes: Line chart shows profit ratio trends. Profit was 1.1B (1.2%) in 1Q FY25, dropping to -1.1B in 2Q FY25, -1.4B in 3Q FY25, 0.6B (0.7%) in 4Q FY25, and -3.0B in 1Q FY26. A one-time cost of approx. 2.1 billion Yen impacted profit.

Solutions Business Quarterly Trends:

  • Sales Revenue: Stacked bar chart shows breakdown by Industrial Tools Unit, Document Solutions Unit, Communications Unit, and Others. Total sales were 269.0B (1Q FY25) to 253.0B (1Q FY26), a decrease of 6.0%.
  • Profit Before Income Taxes: Line chart shows profit ratio trends. Profit was 19.6B (7.3%) in 1Q FY25, dropping to 13.9B (5.3%) in 2Q FY25, recovering to 18.1B (6.8%) in 3Q FY25, and 18.9B (7.5%) in 1Q FY26.

02. Financial Forecasts for Fiscal 2026

Summary Table:

MetricFiscal 2025Fiscal 2026 ForecastChange (Amount)Change (%)
Sales Revenue2,014,454 million Yen1,900,000 million Yen-114,454 million Yen-5.7%
Operating Profit27,299 million Yen (1.4% of sales)55,000 million Yen (2.9% of sales)27,701 million Yen101.5%
Profit Before Income Taxes63,631 million Yen (3.2% of sales)95,000 million Yen (5.0% of sales)31,369 million Yen49.3%
Profit Attributable to Owners of the Parent24,097 million Yen (1.2% of sales)70,500 million Yen (3.7% of sales)46,403 million Yen192.6%
EPS (Yen)17.1150.04
Average Exchange Rate (US$)153 Yen135 Yen
Average Exchange Rate (Euro)164 Yen150 Yen
Capital Expenditures141,932 million Yen (7.0% of sales)180,000 million Yen (9.5% of sales)38,068 million Yen26.8%
Depreciation Charge of PP&E112,077 million Yen (5.6% of sales)120,000 million Yen (6.3% of sales)7,923 million Yen7.1%
R&D Expenses116,087 million Yen (5.8% of sales)120,000 million Yen (6.3% of sales)3,913 million Yen3.4%

Sales Revenue by Reporting Segment (Fiscal 2026 Forecast vs Fiscal 2025):

  • Core Components Business: Forecasted at 547,000 million Yen (28.8%), a decrease of -44,720 million Yen (-7.6%) from 591,720 million Yen (29.4%) in FY25.
    • Industrial & Automotive Components Unit: 250,000 million Yen (13.2%) vs 267,028 million Yen (13.3%) (-6.4%).
    • Semiconductor Components Unit: 272,000 million Yen (14.3%) vs 300,765 million Yen (14.9%) (-9.6%).
    • Others: 25,000 million Yen (1.3%) vs 23,927 million Yen (1.2%) (4.5%).
  • Electronic Components Business: Forecasted at 330,000 million Yen (17.4%), a decrease of -24,646 million Yen (-6.9%) from 354,646 million Yen (17.6%) in FY25.
  • Solutions Business: Forecasted at 1,041,000 million Yen (54.8%), a decrease of -45,367 million Yen (-4.2%) from 1,086,367 million Yen (53.9%) in FY25.
    • Industrial Tools Unit: 292,000 million Yen (15.4%) vs 305,876 million Yen (15.2%) (-4.5%).
    • Document Solutions Unit: 455,000 million Yen (23.9%) vs 479,964 million Yen (23.8%) (-5.2%).
    • Communications Unit: 214,000 million Yen (11.3%) vs 225,497 million Yen (11.2%) (-5.1%).
    • Others: 80,000 million Yen (4.2%) vs 75,030 million Yen (3.7%) (6.6%).
    • Others (second mention): 12,000 million Yen (0.6%) vs 17,114 million Yen (0.9%) (-29.9%).
  • Adjustments and Eliminations: -30,000 million Yen (-1.6%) vs -35,393 million Yen (-1.8%) (5,393 million Yen change).

Business Profit (Loss) by Reporting Segment (Fiscal 2026 Forecast vs Fiscal 2025):

  • Core Components Business: Forecasted at 40,400 million Yen (7.4%), a significant increase of 42,289 million Yen from -1,889 million Yen in FY25.
    • Industrial & Automotive Components Unit: 16,000 million Yen (6.4%) vs 24,673 million Yen (9.2%) (-35.2%).
    • Semiconductor Components Unit: 23,000 million Yen (8.5%) vs -27,824 million Yen (negative profit) in FY25 (large positive change).
    • Others: 1,400 million Yen (5.6%) vs 1,262 million Yen (5.3%) (10.9%).
  • Electronic Components Business: Forecasted at 10,000 million Yen (3.0%), compared to -818 million Yen (negative profit) in FY25, a change of 10,818 million Yen.
  • Solutions Business: Forecasted at 64,000 million Yen (6.1%), a decrease of -9,696 million Yen (-13.2%) from 73,696 million Yen (6.8%) in FY25.
    • Industrial Tools Unit: 9,000 million Yen (3.1%) vs 15,707 million Yen (5.1%) (-42.7%).
    • Document Solutions Unit: 40,000 million Yen (8.8%) vs 49,038 million Yen (10.2%) (-18.4%).
    • Communications Unit: 9,500 million Yen (4.4%) vs 9,347 million Yen (4.1%) (1.6%).
    • Others: 5,500 million Yen (6.9%) vs -396 million Yen (negative profit) (large positive change).
    • Others (second mention): -49,000 million Yen vs -46,990 million Yen (-2,010 million Yen change).
  • Total Business Profit: Forecasted at 65,400 million Yen (3.4%), a significant increase of 41,401 million Yen (172.5%) from 23,999 million Yen (1.2%) in FY25.
  • Corporate Gains and Others: 29,600 million Yen vs 39,632 million Yen (-10,032 million Yen change, -25.3%).
  • Profit Before Income Taxes: Forecasted at 95,000 million Yen (5.0%), an increase of 31,369 million Yen (49.3%) from 63,631 million Yen (3.2%) in FY25.

03. Progress of Structural Reforms and Capital Strategies

Progress of Business Portfolio Restructuring (Approx. 200 Billion Yen Sales Revenue Size):

  • Transfer of Power Semiconductor Business:
    • Reporting Segment: Electronic Components Business
    • Target Business: Silicon Diode and Power Semiconductor Business
    • Branches Subject to Transfer: Kanagawa Hadano Plant, Ibaraki Tsukuba Office, Part of Electronic Components Domestic Sales Division of Kyocera (Overseas) Manufacturing subsidiary in Taiwan.
    • Scale of Business: Sales Revenue for Fiscal 2025: 7.3 Billion Yen.
    • Transferee: Shindengen Electric Manufacturing Co., Ltd.
    • Scheme: Business to be transferred to a new company established by Kyocera via corporate split; shares of the new company to be transferred to Shindengen. Tentative closing date: January 2026.
  • Review of Strategic Options for U.S. Distributor:
    • Reporting Segment: Solutions Business
    • Company Name: Southern Carlson, Inc.
    • Headquarters: Omaha, Nebraska, United States of America.
    • Number of Branches: Approx. 120.
    • Major Business: U.S. distributor of materials for construction and industries.
    • Scale of Business: Sales Revenue for Fiscal 2025: Approx. 140.0 Billion Yen.
    • Background: Joined Kyocera Group in 2019 through acquisition.

Progress of Improvement in Challenging Businesses:

  • Organic Packages and Boards Business: Initiatives to change cost structure are implemented as planned.
    • Selection and concentration of products and production plants: Increase high-value-added products (e.g., orders for multi-layer packages for network ASICs); Scale down production of low-margin products (negotiations with customers to end low-margin products, consolidate production plants).
    • Reduction of fixed costs: Decrease in depreciations (due to impairment loss of production equipment in FY25) reduced by approx. 2.5 billion Yen compared to 1Q FY25.
    • Optimization of production workforce: Relocation of approx. 370 workers completed.
  • KAVX Group: Initiatives to promote cooperation with Kyocera's electronic component business for annual profit. Implemented as planned.
    • Ceramic capacitors: Turned profitable by strengthening technological and equipment capabilities.
      • High-RF products manufactured in U.S.: Yield rates improved by approx. 40% compared to 1Q FY25.
      • High-capacitance products manufactured in Malaysia: Yield rates improved by approx. 5% compared to 1Q FY25.
    • Tantalum capacitors: Expansion of high-value-added polymer products.
      • Increase in types of certified polymer products: From 18 (1Q FY25) to 48 (1Q FY26).
      • Products manufactured in Thailand: Yield rates improved by approx. 5% compared to 1Q FY25.

Progress of Capital Strategies:

  • Reduction of Cross-shareholdings:
    • June 2025: Sold approx. 108 million shares of KDDI (worth approx. 250.0 billion Yen).
    • July 2025: Completed settlement, received 211.1 billion Yen (after-tax).
    • This sale reduced Kyocera's cross-shareholdings by approx. 17%, contributing to the target of reducing cross-shareholdings by at least 5% (book value basis) by fiscal 2026.
    • KDDI Shares Held by Kyocera: 670 million shares (1,581.3 billion Yen) at End of Mar. 2025; 562 million shares (1,394.1 billion Yen) at End of June 2025. This represents a reduction of approx. 1/3 of held shares.
    • Ratio of Cross-shareholdings to Net Assets: 51.6% (End of Mar. 2025), 44.9% (End of June 2025). Future target is less than 20.0%.
  • Repurchase of Own Shares:
    • Details from Board of Directors meeting on May 14, 2025.
    • Types of Shares: Common Stock.
    • Total Number to be Repurchased: Up to 136 Million Shares (Approx.).
    • Total Amount: Up to 200 Billion Yen.
    • Repurchase Period: From May 15, 2025 to March 24, 2026.
    • Method: Market Purchases through TSE.
    • Actual execution was postponed due to handling of MNPI related to business portfolio restructuring. Schedules to commence execution promptly.

Strengthening Corporate Governance:

  • 1. Shortened Term of Office of Directors: Term reduced from 2 years to 1 year. Established a management system for quick response and clarified director responsibilities.
  • 2. Reduced Maximum Number of Directors: Reduced from 20 persons to 12 persons, enabling flexible and speedy decision-making.
  • 3. Appointed a New Independent Outside Director: Noriko Oi (Attorney-at-law) appointed, bringing extensive legal and corporate insight.
  • 4. Appointed Chairperson of Nomination and Remuneration Committee: Eiji Kakiuchi appointed, bringing management experience to enhance transparency and corporate governance.

04. [Reference] Supplementary Information

Cautionary Statements with respect to Forward-Looking Statements:

Statements in this document are forward-looking, based on current assumptions and beliefs. They involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ substantially. These factors include, but are not limited to:

  • General economic conditions (global and Japanese).
  • Unexpected changes in economic, political, and legal conditions in operating countries.
  • Foreign exchange rate fluctuations.
  • Intense competitive pressures.
  • Supplier ability and raw material price fluctuations.
  • Manufacturing delays or defects from outsourcing/internal processes.
  • Possibility that R&D initiatives may not yield desired results.
  • Acquired companies or assets not producing expected returns.
  • Inability to secure skilled employees.
  • Information security damages from cyberattacks and system recovery costs.
  • Insufficient protection of trade secrets and intellectual property.
  • Expenses related to licenses.
  • Conflicts with or changes in laws and regulations.
  • Environmental liability and compliance obligations.
  • Inability to respond to global climate change problems.
  • Impact of plagues, infectious diseases, terrorism, wars, or similar events on market/supply chains.
  • Earthquakes and natural disasters affecting facilities and suppliers.
  • Credit risk on trade receivables.
  • Fluctuations in the value of financial instruments.
  • Impairment losses on assets.
  • Uncertainty over income tax and deferred tax assets.
  • Changes in accounting standards.

Kyocera undertakes no obligation to publicly update these forward-looking statements.

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