Commencing from the beginning of its fiscal year ending March 31, 2019 ("FY19"), Kyocera has adopted the International Financial Reporting Standards ("IFRS") in lieu of the Generally Accepted Accounting Principles of the United States of America ("U.S.GAAP"). In addition, financial figures appearing herein for the six months ended September 30, 2017 ("FY18 1H") and the year ended March 31, 2018 ("FY18") have been reclassified in accordance with IFRS for the purpose of comparative analysis.
Sales revenue for FY19 1H increased by 8.4% compared with FY18 1H, marking a record high for the first half sales for the second consecutive first half period. This is due to contributions from merger and acquisition activities conducted during FY18 and to increases in sales in the Components Business and Document Solutions Group.
Operating profit increased by 19.2% compared with FY18 1H, reflecting the effects of the sales growth and cost reduction efforts in each division.
Profit before income taxes increased by 16.4% and profit attributable to owners of the parent increased by 23.6%, compared with FY18 1H, with both results marking record highs for first half results.
Kyocera entered into long-term purchase agreements with Hemlock Semiconductor Operations LLC and its subsidiary, Hemlock Semiconductor, LLC (collectively, "Hemlock") for the supply of polysilicon material for solar energy (the "LTAs"). As of November 28, 2018, Kyocera reached an agreement with Hemlock regarding the settlement of the LTAs. As a result of this settlement, Kyocera will account a loss of approx. 51.1 billion yen in total. In addition, Kyocera estimates a loss as a result of write-down of materials etc. in the solar energy business. By taking these factors into account, Kyocera has revised its consolidated financial forecasts for fiscal 2019 announced as of April 2018. (Published on November 28, 2018)