SPRING 2015 EDITION

PUBLISHED FOR THE EMPLOYEES

AND FRIENDS OF KYOCERA’SNORTH AMERICAN GROUP COMPANIESKey

FY16 Watchwords for Success: • Attain high growth and high profi ts

• Combine the strength of our internal and external resources to accelerate business development

• Expand existing businesses

• Develop new businesses

• Fortify our management base, underperforming businesses and environmental stewardship

• Practice the Kyocera Philosophy and Amoeba Management System

e-

2 The Key S P R I N G 2 0 1 5

Semiconductor Components Division honors KAI for excellent results in FY15’s fi rst half!

Milestone achievement: KICC’s Victoria Colon entered the one millionth sales order in Kyocera’s KIS System.

In this issue . . .Passion with a Pure Mind, by Dr. Kazuo Inamori ..........................................3Commit to Teamwork, by David Williams ......................................................3KYOCERA Announces Philosophy Essay Contest Winners .......................4KYOCERA Ruggedized Phones Make an Impact .........................................6KYOCERA Launches National Cell Phone Recycling Program .................7KYOCERA America Awarded for Strong 1H FY2015 Result .....................8KYOCERA Standardizes Operator Training ..................................................9KYOCERA’s On-Cell Touchscreen LCD Offers Enhanced Visibility ..........10KYOCERA Introduces MFK Milling Tools for Cast Iron Machining .........11KYOCERA’s In-House Power Purchase Agreement Helps Town of Parker, AZ to Stabilize Electricity Costs ......................................12Financing: Key to Making Solar More Widely Available ...........................13KYOCERA Document Solutions Wins 10 Buyers Laboratory Awards .......14KYOCERA Contest Showcases “Total Document Solutions” ..................15Do the Right Thing: If You See Wrongdoing, Speak Out ..........................16Question of the Month: What is Your Favorite Saying? ................................18Photo Contest .................................................................................................... 20

KII’s Bill Edwards to Receive Lifetime Achievement Award

On March 31, Bill Edwards, Executive Vice President, Treasurer and CFO of Kyocera International, Inc., will be recognized at the San Diego Business Journal’s 9th annual “CFO of the Year Awards,” which recognize fi nancial professionals for outstanding contributions to the success of their companies. Bill, who has been with Kyocera for 31 years, exemplifi es a “never give up” attitude through his hard work, dedication, strong ethics and ability to inspire others. Congratulations on this well-deserved honor, Bill!

Latest Laureates of the Kyoto Prize Come toSan Diego for 14th Annual Symposium

As this issue went to press, San Diego universities were preparing to welcome the latest laureates of the Inamori Foundation’s Kyoto Prize for the 2015 Kyoto Prize Symposium. Laureate lectures March 17-19 will be free and open to the public, featuring biomedical engineer Robert S. Langer of MIT; theoretical physicist Edward Witten of the Institute for Advanced Study; and textile artist Fukumi Shimura, a National Living Treasure of Japan. Dr. Langer Dr. Witten Shimura-Sensei

KSI’s Masa Ozaki, decked out in Kyocera garb, attends the WMPO Golf Tournament in Phoenix with family members.

© 2015 by Kyocera

Publisher: Jay ScovieEditor: Anne Wallis Droter

Contributors:Rupinder Bhathal, Michael Flanders, KAI; John Chier, Bill Meyer, Raina Rutlen, KCI; Whitney Brinlee, Jessica He, KICC;Danielle Wolowitz, KDA; Salvador Hernandez, Leticia Villegas, KMX; Mark Gardiner, KPTI; Cecilia Aguillon, KSI;Michelle Franklin, Cecelia Schellstede, Satomi Schupp, KII.

Photo Contest:Send all entries to aw.droter@kyocera.com

Comments:If you have suggestions or article ideas, please call (804) 339-9281, or email to the address above.

Printed on recycled paper.

Keye-

3 S P R I N G 2 0 1 5 The Key

T RUE PASSION CAN BRING YOU SUCCESS. But if the passion arises from your own greed or self-interest, the

success will be short-lived. If you become insensitive to what is right for society, and start pushing ahead thinking only about yourself, the same passion which brought you success initially will cause you to fail in the end.

Ultimately, success depends on the purity of the desire that reaches our subconscious minds.

It would be ideal if we could rid ourselves of our selfi shness and have completely altruistic and pure desires for humanity and society. But it is almost impossible for us, as human beings, to fully eradicate our self-interest and greed. And we should not feel ashamed of this. We need some egotistic desires as part of the self-preservation

mechanism that keeps us alive. But we also need to make an effort to control them.

We should at least shift our work objective from working just for ourselves to doing so for our group. By shifting our objective away from ourselves to others, the purity of our desire will increase. Eventually, the strong desire of a pure mind will prevail.

It has often been my experience, when I am agonizing and worrying over a purely selfl ess desire, to suddenly see a solution to the problem. I like to think of this as a Higher Power granting me an insight by letting my desperate but pure desire reach my subconscious mind.

P REPARING FOR THE START OF A NEW fi scal year seems to be an appropriate time to refl ect on why

we achieved or failed to achieve the goals that we had set in the prior period. That conscious refl ection led me to conclude that the degree to which we worked closely together was the most common factor in determining whether a goal was achieved. Where there was teamwork and a spirit of working with a focus on the common goal, there was consistent success.

Dr. Inamori instructs that we all have “an altruistic instinct that fi lls us with a sense of satisfaction when we are able to help others” and that true fulfi llment is achieved through such undertakings. The unselfi sh acts that are requirements of teamwork should allow us to see more clearly — beyond preconceived notions and beyond the impediments created by our innate desire to give priority to our own needs and wants.

M A N A G E M E N T ’ S V I E W

Passion with a Pure MindFrom A Passion for Success, by Dr. Kazuo Inamori,Founder and Chairman Emeritus of the worldwideKyocera Group

Commit to TeamworkBy David M. Williams, President, Kyocera Industrial Ceramics Corporation

KYOCERA Announces Consolidated Financial Results for First Three

Quarters of FY15

“

(Continued on page 19)

K YOCERA CORPORATION RECENTLY announced consolidated fi nan-cial results for the nine months

ended Dec. 31 (Q1 through Q3).The company recorded its highest

nine-month consolidated revenue to date, led by increased sales in the Information Equipment, Semiconductor Components, and Fine Ceramics groups. Consolidated quarterly revenue stood at a record high for Q3 as well.

The principal markets served by the Kyocera Group saw mixed performance. Global smartphone shipments grew, increasing demand for handsets and the components they require. Demand for automotive electronics also grew as vehicle sales expanded, particularly in the U.S. and China. However, Japan’s solar energy sector struggled amid the end of subsidies for new residential solar power systems and the suspension of utility-grid access applications.

Consolidated net sales for the nine months increased 2.8% as compared with the same period of the prior year, to ¥1,101,692 (USD9,105) million; profi t from operations increased 0.6%, to ¥90,222 (USD746) million; income before income taxes increased 3.9%, to ¥114,667 (USD948) million; and net income attributable to shareholders of Kyocera Corporation increased 6.6%, to ¥73,971 (USD611) million.

For Q4, Kyocera forecasts continued strong demand for components used in the industrial machinery and automotive markets, and rising equipment sales through efforts to cultivate new markets and launch new products, including mobile phones and offi ce document equipment. Conversely, sales in the solar energy-related business are projected to fall below forecasts made in October 2014, due primarily to stagnating demand in Japan. This makes Q4 an ideal time for the Kyocera principles of “Maximize Revenue, Minimize Expenses,” and “Never Give Up!”

4 The Key S P R I N G 2 0 1 5

Top Prize Recipients

1st Prize ― $1,000Oscar Gonzalez, KMX

2nd Prize ― $700 Doug McDaris, KICC

3rd Prize ― $500 Peter Hendrick, KDA

Excellence Awards Shawn Evans, KPTI

Moira Garner, KIIAkihito Ito, KSI

Kaz Ohara, KICCJesus Sanchez, KAI

Honorable Mention AwardsCaress Allen, KAI

Dan Brown, KIITed Engebretson, KII

Kaz Fujimoto, KPTIMasa Hashiguchi, KII

Marie Herrera, KIIJohn Khalaf, KICC

Hsiang Lin, KIIMai Magone, KAI

Dave Namba, KDAPhil Popp, KII

Tim Ribeiro, KICCYoji Sato, KDARudy Satoh, KII

Jessica Wong, KAI

Recognition AwardsJeff Abell, KICC

Jerry Aguirre, KAIFernando Amador, KMX

Oscar Bracamonte, KSIAngela Burckhard, KICCPingchia Chang, KDDA

Ichiro Chiba, KDAMike Cranford, KCIMarian Drum, KPTI

Angela Fregosa, KMXMark Gardiner, KPTI

Eric Heiser, KCILeanne Hendricks, KDA

Set Hernandez, KMXCalum Jiao, KDAAndy Karl, KICC

Simon Lovitt, KAILori Martin, KDA

Deborah McCall, KPTIKenneth McQuillan, KAI

Nain Morales, KMXFlor Olivas, KMX

Ruby Quintana, KSISusan Rozok, KCIAllan Smith, KICC

Mario Vazquez, KAIApril Venable, KDA

Celia Villa, KMXGordon E. Weddle, KICC

Stacia White, KICC

Winners Announced in KYOCERA Philosophy Essay Contest

K YOCERA’S ANNUAL PHILOSOPHY ESSAY CONTEST GIVES EMPLOYEES THE OPPORTUNITY TO share how the Kyocera Philosophy has impacted our mindset and led to positive change in our business and in our lives. Our judges were impressed by the record-

setting number of employees — 434, up 36% from 2014 — who wrote inspiring accounts of recent, real-life, personal experience with the Kyocera Philosophy. The top three essays will be reprinted in The Key, with 1st Prize appearing in this issue (below). You’ll also fi nd excerpts of other essays as well, to share employee insights. Congratulations to everyone who participated, and keep those great ideas fl owing! Next year’s contest will be here before you can say, “Envisioning a goal is the key to making it happen.”

H ELLO! I’M OSCAR GONZALEZ Macias, a KMX employee. As of today, I have worked two

months in the Security Department and previously I worked for six years in the Maintenance Department.

I am telling you this because inside this essay I would like to share with you how the Formula for Success of Kyocera has helped me see life with a different point of view. This formula not only has helped me in my work, but it gave a whole different dimension and perspective to the way I appreciate my life and focus my efforts.

The formula that I am referring to is:Personal and Professional Success =

Attitude (from -100 to 100) x Effort (from 0 to 100) x Ability (from 0 to 100)

This formula is so very important to me that during the time when I had to move away from Tijuana and was no longer

working for Kyocera I was still spreading it to my colleagues. The fi rst day I arrived to that new job, the fi rst thing I did was to write the formula on a whiteboard in my offi ce behind my desk. Even though people did not know me well, with the passing of time many approached me to ask about the meaning of what I had written on that whiteboard. In addition to explaining it to them, I would say that it was a way to see life, a way to live life and a way to value life.

This formula, simple and complex at the same time, works for any aspect of life, and if you apply it correctly it will always guarantee success based on effort, commitment and dedication. Obviously the most important part of this equation is Attitude and even though what we see at fi rst glance seems simple, it is very complex to maintain that Attitude which must always be positive, proactive, enthusiastic, dedicated

The FormulaFor Success

by Oscar Gonzalez,KMX Security Department

5 S P R I N G 2 0 1 5 The Key

and especially focused on the target.At work, once I learned, understood

and assimilated this formula, I perfectly understood that the way of making a team, the way to improve, the way to shine, the way to grow, the way to gain respect, the way of making you hear, the way to solve problems, the way of contributing ideas, is to put the best of each one, not more, not less, simply the best that each one has to learn, to understand, to participate, to help, to ask, to serve, to sort, to work — every day and always, with a great attitude.

If you read again the previous paragraph you will understand that the message is not so simple, this is the complex part of the formula, because the ONLY thing you need is to give the best of each one with a good way of thinking, in other words, with a proactive mentality, participative, progressive, open, alert, honest and humble at all the same time and in any situation. Wow, is that quite a challenge or not?

Changing to a personal subject, this is where the formula had a bigger impact in me, even though I learned about it when I was 30 years old, this changed my perspective of how I see my life. It helped me to measure, to understand and to value things that I could not understand or accept, especially with the situation I was going through at that time.

This formula opened my eyes and taught me that there is nothing more important in the world than a good Attitude, that there is nothing more valuable than the courage to try again and again without fear of failure or to fail, that all successes are gained with a lot of effort, that all successes are achieved with a great deal of effort, that consistency is the mother of all great achievements, there is nothing stronger in the world than determination and when one sets a goal in life the best tools to achieve it are tenacity and perseverance.

This formula opened my eyes and taught me, despite having studied in different schools, to belong to two wonderful families (the Gonzalez and the Macias), having worked in many companies and having participated in different social, sports and cultural groups, the best teacher that I have known about life so far and after learning the Kyocera Formula for Success, was living under my own roof: he was a little guy of four years old named Andres Gonzalez Aquino, my son.

I will say that, when Andres was born in a premature birth of only six months and a half, he seemed to be a normal boy, but

within the year we started to realize that he could not do things that the majority of children his age did. To give you an idea, after 18 months, Andres never made any noise, he couldn’t crawl, he couldn’t sit and needless to say he could not stand or walk. It was then that we started taking him to specialists and doctors. Unfortunately, their opinions did coincide that Andres had a developmental delay both at the motor and cognitive level, and was very likely to need physical therapy and special schools practically his entire life. In fact, we were told it was very likely that Andres would not walk due to the profound delay he was presenting.

In addition to all this, they gave us information about places that could help us and told us that any progress and improvements he made would depend mainly on the consistency, dedication, effort, work, courage, determination, tenacity and perseverance that Andres put into his therapies and into each and every one of the goals and objectives that he would set. I understood what they were telling me: they simply told me that his attitude would be decisive for his future.

Thanks to God and to Andres after years of fi ghts, therapies, effort, sleepless nights, tears, failures, errors, mistakes, not getting despair, getting up repeatedly, trying thousands of times, fatigue, exhaustion, and one after another after another training… Andres not only attends normal school, but fi nally, in the past couple of years, he is among the best of his class and he is eager to continue studying until achieving a postgraduate degree abroad.

In addition, as of today, Andres not only can walk, run, jump, dance and play as a kid of his age but he is actually a state champion of racewalking in Baja California and he is eager to be 14 years old and be able to represent Tijuana in the National Olympics and so to start his way to his next objective, representing Mexico in the Olympics and winning the gold medal.

I hope to have enough life to continue learning from Andres, to continue seeing life through the lens of Kyocera’s Formula for Success and to see my son achieve these objectives that he has set in his life.

People still ask me why I keep getting tears every time I watch him participate in a racewalking competition… I think they would understand if they knew that one day long ago, doctors told me that this boy would probably never be able to walk. Thank you, Andres and Kyocera!!!!!

Notable Philosophy Essay Excerpts

“Every employee must be a sales- person: gaining revenues and prof i t s i s an accumulation of efforts. Sales gets an inquiry from a

customer. Engineering designs to meet the customer’s specifi cations. Production negotiates with suppliers for prices, deliveries, and quality. Logistics manages and ships the goods to the customers. The main purpose of these activities is to serve the customer. In other words, every employee works for our customers.” — Masayoshi Ozaki,

KSI Senior Product Manager

“We need to carry over our optimism from each big win, and use it to face challenges ahead with more courage than ever before. We can do

that because with experience, we have a stronger belief in our abilities, we are better at planning and more confi dent in our execution.

I believe Dr. Inamori wants us to reach new levels of optimism with every success; so we can gain the confi dence we need to face the challenges ahead of us in our industry.” — Mai Magone,

KAI Administrative Specialist

“As you go about your daily work schedule, your daily life, family, and friends; think to yourself, ‘Am I a leader?’ The answer just might

surprise you! Your leadership doesn’t always mean being in charge or being in management. It is your ethics, values, guidance, passion, willpower, kindheart-edness, and fi ghting spirit that others see in you that they turn to in times of need, or just to have you in their life.” — Bob Fisher,

KPTI Lead Machinist

6 The Key S P R I N G 2 0 1 5

KYO C E R A CO M M U N I C AT I O N S, IN C. S A N D I E G O , C A L I F O R N I A

EXPERIENTIAL TREATMENT: Customers learn about Kyocera’s ruggedized DuraForce smartphoneat one of 1,875 AT&T retail stores featuring a Kyocera-focused “community tabletop experience.”

KYOCERA’s Ruggedized Phones Make an Impact at Phonescoop and AT&T

K YOCERA COMMUNICATIONS, INC. (KCI) has focused on growing its portfolio and solidifying Kyocera

as the brand of choice for rugged mobile devices. The company has worked diligently to expand its presence among U.S. national Tier 1 service carriers, including Verizon Wireless, AT&T, Sprint and T-Mobile — and it’s working!

Phonescoop.com Chooses Kyocera Phonescoop.com is a popular and

widely respected industry resource. Thanks to growth Kyocera is helping to drive, Phonescoop added a “Rugged” category to its recent Holiday Gift Guide for devices that offer great smartphone features in a tough, waterproof package.

Kyocera swept the honors in this new Rugged category, with editors naming four different Kyocera phones as the top rugged device at each of the major U.S. national carriers:

• AT&T: Kyocera DuraForce • Sprint: Kyocera Torque XT• T-Mobile: Kyocera Hydro Life• Verizon Wireless: Kyocera BrigadierKyocera phones were also chosen as best

prepaid “Waterproof ” and best “Basic” phones at several carriers. This third-party endorsement testifi es to Kyocera’s rising status in the rugged phone segment.

AT&T Community TabletopIn January, AT&T honored Kyocera

when our rugged DuraForce phone became the focus of an unprecedented experiential merchandising display in more than 1,875 AT&T retail stores. The “community tabletop experience” is designed to highlight new and exciting products — such as Kyocera’s DuraForce!

AT&T’s executive leadership wanted to take full advantage of Kyocera’s relationship with extreme adventurer Bear Grylls, so they let their creative team run wild in producing displays that emphasize Bear’s endorsement.

The displays, in-store through April 9, reach approximately 300 customers per day, per store — that’s more than half a million people learning about Kyocera’s rugged DuraForce phone every day.

“This merchandising display represents an unparalleled opportunity to drive awareness and engagement with customers and retail sales associates for DuraForce,” said Deena Carney, Kyocera’s Senior Manager of Channel Marketing.

The National Field Sales team coordinated store visits and training to align with the display’s launch, delivering a powerful one-two punch to enhance our market position and grow the Kyocera brand.

KYOCERA Products Impact Our Lives

MULTI-TASKING: Active people need phones that can handle the spills and drops of everyday life. Enter the Kyocera Brigadier smartphone: with its sapphire display and rugged body, it’s ideal for today’s busy lifestyles. Giving baby a bath while juggling a call? Splash — phone takes a dip. But it’s no problem. Waterproof Brigadier takes the tears out of bathtime. At least for Dad.

RUGGED AND READY: Kyocera’s DuraForce is built to withstand rugged environments. Dust, shock, extreme temperatures, and blowing rain won’t faze it — so accidents won’t ruin your day.

7 S P R I N G 2 0 1 5 The Key

N EARLY TWO BILLION NEW MOBILE phones are sold each year globally. But what happens

to the old ones? In the U.S., less than 10 percent are ever recycled, with the remaining 90 percent going into landfi lls or incinerators. To help, Kyocera recently announced a U.S.-wide cell-phone “Take Back” program, free to consumers wishing to recycle mobile phones of any brand.

The program is run with SecondWave Recycling, an organization that facilitates free phone recycling to support charitable causes. Every four phones recycled for their raw materials generates a $1 donation to Cell Phones for Soldiers, a nonprofi t organization dedicated to providing cost-free communication services to active-duty U.S. service members and veterans.

“By partnering with SecondWave Recycling, Kyocera takes action to protect our planet while also raising funds to keep our veterans and active-duty military

connected to their families through the fantastic Cell Phones for Soldiers charity,” said Eric Anderson, Senior V.P. and G.M. of Global Sales and Marketing.

If you have a phone to recycle through Kyocera’s convenient and free Take Back program, you can print free shipping labels at www.kyoceramobile.com/sustainability — Kyocera will even provide free packaging for the shipment if you need it.

For every $1 donation, Cell Phones for Soldiers funds 30 minutes of long-distance phone service for military troops and veterans stationed away from their families. As a long-standing supporter of the charity, Kyocera has already provided more than 50,000 minutes of long-distance calling through past recycling programs.

We hope the Take Back program will increase awareness of the need for proper e-waste disposal — while motivating more people to support the environment, and our service members, by recycling.

Do the Right Thing: KYOCERA Launches National Cell Phone Recycling Program

Proceeds will benefi t Cell Phones for Soldiers

(Left) At the Kyocera Pro-Am tournament, KCI staff hosted The Arians Family Foundation in the skybox. From left are Dave Baesler, Kris Arians, Randy Hanson, Deena Carney, Phoenix Cardinals Coach and Arians Foundation Founder Bruce Arians, Mary Rudd, Eric Anderson, John Chier, Zach Erwin and Sean Savery. (Right) Signage exposed hundreds of thousands of fans to the Kyocera brand.

N OT ONLY IS THE WASTE Management Phoenix Open (WMPO) Golf Tournament

the “Greenest Show on Grass” — due to its Zero Waste initiatives and commitment to renewable energy — it’s also the PGA Tour’s most technology-friendly stop.

Kyocera sees this unique event, held Jan. 26 through Feb. 1 at TPC Scottsdale, as an ideal opportunity for building brand awareness. To maximize visibility, Kyocera sponsored a new mobile app for the Open,

as well as the event’s Pro-Am tournament, hosting The Arians Family Foundation in support of abused and neglected children. Kyocera supports the foundation in other golf tournaments throughout the year.

The WMPO Mobile App, sponsored by Kyocera, provided security information, a PGA Tour leaderboard, a car fi nder, “Take Me There” navigation around the course, links to WMPO social media, course hole descriptions and a Daily Event feature to help fans engage in tournament action.

New advances in communications technology, like Kyocera’s mobile app, help support WMPO’s Zero Waste initiatives by reducing the amount of information distributed on paper.

The combination of high-tech Earth-friendliness and half a million attendees make WMPO a great venue for building Kyocera brand awareness — especially among people who love highly competitive golf, terrifi c mobile technology and a healthier environment.

KYOCERA Makes A Difference at Phoenix Open Golf Tourney

Kyocera Sales Representative Jason DePue introduces the DuraForce phone for AT&T’s Government/Education Kick-Off Meeting at the Richard Nixon Memorial Library in Yorba Linda, California. “I left a DuraForce phone in a pitcher of water during my entire presentation — and had a person call every few minutes, so the audience could see it light up, still working,” Jason explained. “Hands-on demonstrations like this go a long way to showing Kyocera’s leadership in the ruggedized phone space.”

8 The Key S P R I N G 2 0 1 5

T WICE YEARLY, KYOCERA LEADERS from around the globe gather in Kyoto for the International

Management Meeting (IMM) to align vectors, present results and discuss strategies to meet the Master Plan.

At the November IMM, when Ceramic Semiconductor Components Group executives met from all affi liate companies worldwide, they learned of a newly created award. “SC Division management established a new contest among all sales groups to award the division or affi liate company with the best result,” explained Bob Whisler, KAI President.

Hiroyuki Yamashita, GM of Kyocera’s Global Semiconductor Components Division, awarded KAI the fi rst-ever trophy for outstanding fi rst-half results.

“KAI was awarded the trophy for exceeding its Master Plan in all areas, with a focus on bookings, revenue, profi t and the ratio of profi t against revenue,” Bob continued. “If KAI continues to exceed its Master Plan in the second half, we’ll get to keep the trophy. That is our goal.”

A combination of strong market conditions and rising production yield has allowed KAI to beat performance targets in key areas. KAI and KMX have been

working tirelessly to solve manufacturing challenges and further increase yields.

“In particular, the LDMOS line at KMX has been extremely productive in support of the wireless communications industry, and KAI’s Layer Division is very strong with products for U.S. government programs,” Bob stated. “Production is improving profi tability on a monthly basis, so if we continue at this pace we may very well get to keep the trophy.”

While optimistic, Bob is also a realist. “We can’t afford to become complacent,” he says. “The need to maximize revenue and minimize expenses never ends.”

K Y O C E R A A M E R I C A , I N C . S A N D I E G O , C A L I F O R N I A

KYOCERA MEXICANA, S.A. DE C.V. T I J U A N A , M E X I C O

KYOCERA America Awarded for Best First-Half Results in Semiconductor Components Division

KAI leads KYOCERA’s fi ve ceramic semiconductor package sales companies worldwide in profi tability

TRIUMPH: Hiroyuki Yamashita, GM of the Global Semiconductor Components Division, awards the fi rst-ever trophy for best fi rst-half results to Bob Whisler for KAI’s outstanding performance.

WE’RE NO. 1: KAI’s second-shift employees proudly signal their top position in bookings, revenue and profi tability among Kyocera’s worldwide ceramic Semiconductor Components sales segment.

Did you know that 150 million people in the U.S. play video games, and that the industry is expected to top $112 billion in 2015? Kyocera plays a role in this colossal industry. Our organic laminate microelectronic packages, manufactured in Japan, have been sold by KAI in North America to house the central processing units (CPUs) in consoles including the Xbox 360, Nintendo Wii, and Sony PlayStation 3. So, next time you sit down for a game of Minecraft, you can be proud to know you’re likely using Kyocera technology!

Kyocera’s organic packages,like this fl ip-chip ball-grid array,

have been used in awesome game consoles like the Sony PlayStation,

Xbox 360 and Nintendo Wii.

KYOCERA Products Enhance the Videogame Experiencecece

9 S P R I N G 2 0 1 5 The Key

F ROM KYOCERA’S BEGINNING, DR. Inamori actively sought ways to expand, knowing that a diverse

product line would protect the company and its employees.

One key element of business development lies in mergers and acquisitions (M&A). Rupinder Bhathal, who heads KAI’s Business Growth Committee, works to identify M&A options for Kyocera America. The committee includes KAI’s Bob Whisler, Nick Huntalas, Chong Park, Rick Sigliano and Arne Knudsen; KMX’s Dave Hester; and KII’s John Rigby and Tom Bliss.

“The Business Growth Committee isn’t looking to expand what we’re already doing on a sales level — although that is certainly a strong focus throughout KAI,” Rupinder stated. “Our committee’s goal is to identify solid ways to grow our company exponentially — through M&As.”

The committee meets bi-weekly and has quarterly video conferences with KC’s Semiconductor Components Division and Corporate Development Group to review

opportunities and identify those with the best potential.

“We established specifi c parameters for assessing potential M&A directions,” she continued. “For example, a potential merger must bring something unique — a product, market or technology.”

Focusing on strategic analysis, the group identifi es a pipeline of companies that fi t within many parameters. They have evaluated more than 100 companies so far.

The committee also considers whether a company is a “fi t” with the Kyocera Philosophy. Knowing whether a company conducts business ethically is the No. 1 parameter. Other criteria include strong on-shore manufacturing; products, markets and customers that are differentiated from Kyocera’s current businesses; and profi tability.

Identifying paths to grow through M&A is an ongoing challenge. It’s crucial to invest the time and get it right. KAI has already made considerable strides by establishing a strategy for growing its business through acquisitions, putting

together a systematic process for evaluating companies, and establishing strong support for this effort at KC. “The Growth Committee will never give up its effort to ensure that Kyocera continues to prosper through successful M&A opportunities,” Rupinder stated.

KYOCERA Creates Videos to Standardize Operator Training

Reducing process variation will improve yield

W HEN THE PLATING GROUP AT KMX realized that different operators were performing

critical processes with slight variations in technique, they determined that the best way to standardize performance was to “show” operators a demonstration of best practices. And, in our technologically advanced society, what better medium than instructional video to achieve this goal?

“Our new video training series is part of a general effort to reduce defects, particularly plating blisters, which are closely related to how processes are performed,” said Michael Flanders, Quality Assurance Manager. “Without a clear model, individual operators perform tasks in slightly different ways, which is what we want to prevent.”

The QA team fi rst identifi ed the critical processes that are particularly operator-dependent. Next, they selected

experienced operators to demonstrate “best practice” methods, as evaluated by plating engineering staff and management. The department made the videos in-house to minimize expenses.

“The primary goal of these videos is process standardization,” Michael explained. “Our intent is to make these part of our standard documentation, with revision control, just like any paper document.”

Each two- to three-minute video shows operators how to perform key stages of the production process. So far, they are primarily targeted toward training new employees on the manual plating line.

Kyocera’s commitment to continuous improvement takes many forms. This latest video iteration will benefi t employees, customers and our company’s performance. What a smart way to utilize technology to achieve process improvement!

AND . . . ACTION: Leticia Villegas shoots atraining video of Rodrigo Leon demonstrating the optimal method for agitating Kyocerawork-in-process in an acid bath.

Michael Flanders, Victor Arias, Leticia Villegas and Michael Shane are part of the team behind the idea to standardize plating processes with instructional videos.

Rupinder Bhathal heads Kyocera’s efforts to expand growth exponentially.

Business Development: Seeking Partners to Maximize GrowthIdentifying prospective companies that may be a “fi t” is an ongoing challenge

10 The Key S P R I N G 2 0 1 5

KYOCERA INDUSTRIAL CERAMICS CORPORATION VANCOUVER, WAHENDERSONVILLE, NC P L Y M O U T H , MI ; T I J UA N A , M E X I C O

Compare Kyocera’s optically bonded “on-cell” LCD panel (above) with a typical tape-bonded panel (below). On-cell technology improves visibility because its touch-screen is built in — which reduces interior optical refl ection as comparedto a conventional panel, in which the touchscreen is tape-bonded onto the LCD module. Customers can easily see the Kyocera advantage!

On-cell touchscreen technology makes Kyocera a one-stop shop for touchscreen LCDs.

K YOCERA INDUSTRIAL CERAMICS Corporation’s Display Division provides LCDs that serve as

the main user interface in automotive, medical, marine, industrial and aerospace applications. The company’s latest 7.0” LCD modules feature a fully integrated “on-cell” touchscreen technology. By embedding the touch-sensor layer directly into the LCD structure, the on-cell confi guration offers several key benefi ts.

First, Kyocera’s on-cell technology eliminates the need for a bulky touch-component overlay to be added to the LCD module. The result is an ideal solution for industrial applications requiring superior optical performance and full touchscreen functionality in a lightweight, compact form factor.

The integrated touchscreen also improves the LCD’s performance. By eliminating the need for a touch substrate overlay, interior optical refl ections are greatly reduced, thus enhancing the

touchscreen’s visibility. Kyocera’s on-cell touchscreen also improves our customers’ component management since it eliminates the need for a separate touchscreen supplier and integrator.

The two new on-cell touch panels, powered by Kyocera’s Advanced Wide View technology, achieve a wide, 85-degree viewing angle in all directions. They feature 800x480 resolution; an anti-glare, anti-fi ngerprint surface; and operating temperature range of -20° to +70°C. Kyocera’s On-Cell LED backlight offers an estimated 100,000-hour lifetime with built-in LED driver circuits for easy integration.

“These on-cell modules make Kyocera a one-stop shop for touchscreen LCDs, reducing production costs for customers by eliminating the need for an optical bonding process,” said Cynthia Ferrell, Display Division Vice President. “Streamlining our customers’ manufacturing process with an innovative new LCD is a great way to enhance market share.”

KYOCERA’s On-Cell Touchscreen LCDs Offer Enhanced Visibility

Built-in touchscreen streamlines customers’ manufacturing

See the KYOCERA“On-Cell” Difference

HONOREE: Kyocera’s kitchen cookware, featuring a proprietary ceramic nonstick coating technology, received a prestigious 2014 Good Design Award from the Chicago Athenaeum, the only independent museum of architecture and design in the United States. The award was given for innovative design, functionality and sensitivity to the environment. Kyocera offers 8-, 10- and 12-inch fry pans that provide superior nonstick performance and are safe, scratch-resistant and easy to clean. Order yours today at KyoceraAdvancedCeramics.com, and receive 50% off retail pricing by using code KYOKEY at checkout.

KYOCERA Cookware Wins 2014 Good Design Award

11 S P R I N G 2 0 1 5 The Key

K YOCERA PRECISION TOOLS, INC. (KPTI) recently unveiled its new MFK indexable milling cutters

and inserts for cast iron — a milling system offering machinists improved quality, better cost performance and higher productivity in cutting applications ranging from roughing to fi nishing.

Kyocera’s MFK cast iron milling cutter utilizes a newly developed double-sided insert with 10 cutting edges. Negative inserts offer cost benefi ts because cutting edges can be formed on both sides of the insert; however, they may increase cutting

resistance, which can reduce sharpness or increase a condition known as “chattering.” Kyocera addressed this by using a proprietary molding technology to develop uniquely shaped inserts that reduce both cutting resistance and chattering.

In addition to providing cost benefi ts and high quality, Kyocera’s double-sided, 10-corner negative inserts utilize two lead angles per corner, which helps prevent insert fracturing and “breakout.”

Kyocera has enhanced its insert grade lineup by adding CA420M CVD coating material for cast iron milling, offering

improved abrasion resistance, better cost performance, longer tool life and a more stable machining process.

The MFK family of products is comprehensively designed to help improve customer productivity. That’s good news for machinists who produce automotive engines, construction equipment and machine tools, which require metal components in complex shapes.

Because they improve machining quality by reducing cutting forces and chipping, Kyocera’s MFK cast iron milling cutters should meet with strong demand.

KYOCERA Introduces MFK Milling Tools for Cast Iron Machining

New tools reduce costs and improve quality in machining complex-shaped cast iron pieces

KYO C E R A PR E C I S I O N TO O L S , IN C . CO S TA ME S A, CA L I F O R N I A

WA PA KO N E TA, OHHE N D E R S O N V I L L E , NC

KYOCERA Products Add Precision to Your Car

PRECISION MADE: Kyocera’s cutting tool products are known for reliable, high-quality metal cutting in a variety of industries. One example is the automotive engine’s cylinder head, which is made using a process known as “face milling.” Kyocera’s indexable face mills precisely remove material from the casting to create the fi nished head — one of the most important components of the engine. Among Kyocera’s major cutting tool end-users is Toyota. So, if you own a Toyota, you can drive knowing that high-quality Kyocera cutting tools were probably used in its manufacturing process.

Gray and ductile cast irons have been notoriously diffi cult to machine into complex shapes — until now. Kyocera’s double-sided, 10-edge negative inserts address machining challenges while improving quality and cost performance.

12 The Key S P R I N G 2 0 1 5

KYOCERA SOLAR, INC. S A N D I E G O , C A L I F O R N I A

SCOTTSDALE, AZ R I O D E J A N E I R O , B R A Z I L

KYOCERA’s In-House Power Purchase Agreement Enables Parker, AZ to Stabilize Electricity Costs

Project Will Produce 300 Megawatt Hours (MWh) of Solar Power Annually

WRITING THE BOOK ON SUSTAINABILITY: Two carport structures outside the Parker Public Library will produce 95% of the electricity needed by the building while simultaneously shading cars from the blazing Arizona sun.

K YOCERA’S BUSINESS STRATEGY OF developing and fi nancing solar installations that use reliable

Kyocera solar modules is continuing to reap rewards: in January, Kyocera announced a 175-kilowatt (kW) solar energy project with the town of Parker, Arizona.

The fi nancing strategy used for the Parker project is known as an in-house Power Purchase Agreement (PPA) program. PPAs enable towns, school districts and other entities to “go green” by adopting solar energy with no up-front costs. Kyocera benefi ts both as the module provider, and as the recipient of monthly payments from Parker for all of the energy the system produces over the next 20 years.

This innovative method of solar fi nancing will benefi t both Parker and the environment. The carport installations, which cover portions of the parking areas for Parker’s town hall, library and senior center, will shade approximately 50 cars while simultaneously harnessing the sun’s

energy. The 700 Kyocera high-effi ciency solar panels and 12 SMA inverters will generate an estimated 300 megawatt hours (MWh) of electricity annually, to offset approximately 80% of the electricity consumed by the three buildings.

“Municipalities have a responsibility to their citizens to undertake projects that provide long-term benefi ts at a reasonable cost,” said Tim Edwards, Public Works Director for the town of Parker. “We are excited to work with Kyocera for their proven solar modules and fi nancing model. By stabilizing our town’s electricity bills for decades to come, we’re providing a brighter future to Parker’s residents.”

This project, installed by Photovoltaic Systems Manufacturing of Mesa, Ariz., benefi ts from a production-based incentive under Arizona Public Service’s “Solar for Schools and Government” program — as did Kyocera’s fi rst in-house PPA project, a 1.6 megawatt (MW) installation for the Madison School District in Phoenix.

As a $14 billion global enterprise that has remained continuously profi table throughout its 56-year history, Kyocera can leverage its fi nancial strength to develop and fi nance solar projects at attractive rates. This new business model enables Kyocera to offer its full turn-key solar energy systems with industry-leading reliability under very competitive terms.

“Kyocera is committed to helping municipalities and other entities adopt environmentally responsible methods that help their bottom line with our decades of expertise in providing reliable, effi cient solar energy solutions,” said Brian Cowan, Director of PV Project Solutions for KSI. “Many people focus on driving down the cost per-watt in a solar installation, but the cost of fi nancing also has a signifi cant impact on the customer’s cost per-kilowatt-hour. By combining Kyocera’s premium product, systems engineering expertise and attractive fi nancing, we offer an unbeatable combination.”

13 S P R I N G 2 0 1 5 The Key

F OUR FIRE DEPARTMENTS SERVING San Diego’s Fallbrook, Bonsall and Rainbow communities

now generate clean energy using the planet’s most abundant renewable resource: sunlight. That’s because the North County Fire Protection District (NCFPD), with 50,000 residents, chose solar to help offset its rising energy bills.

“Going solar allows the district to reallocate several thousand taxpayer dollars monthly to project fi nancing and other essential services, while promoting an environmentally responsible message in our community,” said Greg Wilson, Battalion Chief for the NCFPD.

The project received rebates from the California Solar Initiative, and was completed by San Diego-based Sullivan Solar Power using Kyocera’s high-reliability modules exclusively.

Kyocera is proud to support the NCFPD, which protects local lives and property. The district’s four PV systems total 121kW, using 431 Kyocera KD320 GX-LFB solar modules with ballasted Sunlink mounting and SMA inverters. The installations will generate an estimated 180,000 kilowatt hours annually, and should pay for themselves within seven years.

“We have used Kyocera solar modules on many projects, and have had nothing but positive experiences with Kyocera,” said Tara Kelly of Sullivan. “Sullivan Solar Power knows that Kyocera is a quality, fi nancially stable company with terrifi c, proven, locally manufactured solar modules, and the NCFPD believes in the product as well.”

Solar Financing: Key to Making Systems More Widely Available

KYOCERA andSullivan Solar Help Four San Diego Fire Stations “Go Green”

Kyocera solar modules help to insulate San Diego’s North County Fire Protection District from future utility rate increases.

NOW, THAT’S REFRESHING! The 500kW Kyocera solar installation atop Gatorade’s distribution center in Tolleson, Ariz., has been generating clean, renewable energy from the sun since 2008 — producing about 5.5MWh of electricity, and preventing the release of more than 2,870 metric tons of CO2 each year. With many Kyocera PV systems generating high levels of power for 25 years or more, this one has only just begun contributing to a better environment.

W ITH SOLAR INCENTIVES DECLINING or gone in most states, does the consumer or business owner

now need a big upfront investment to “go green” with solar energy?

Short answer: No. Financing specifi cally designed around the benefi ts of photovoltaic (PV) power can make solar attractive even without state incentives.

Many new fi nancing solutions exist for purchasing a residential, large commercial or utility-scale PV installation. But what if you’re not planning to buy? Many individuals and companies want solar, but have no need, or desire, to own their PV system. They now have many options:

• Power purchase agreements (PPAs). With a PPA, customers pay no upfront fee — yet still enjoy solar power benefi ts immediately upon system completion, with stable electric bills for decades. For non-taxable entities like schools, municipalities and non-profi t organizations, the PPA can be an ideal solution. In addition to manufacturing PV modules and systems, Kyocera offers PPAs for commercial installations, and can even help non-taxable entities install solar systems through PPAs and tax-equity agreements.

• Property-Assessed Clean Energy (PACE) program. This community/ government initiative enables property owners to borrow up to 20% of their

property value to install solar, or other energy-effi ciency upgrades, and repay the loan as a property tax assessment over a term of up to 20 years. With a PACE program, a PV system is attached to the property, and can be sold with the property.

• On-bill fi nancing of a solar shares or “community solar” program. This option involves a large “solar garden,” ideally located near a utility substation. A consumer interested in adopting solar energy can purchase a share of the project, perhaps 2 kilowatts. All of the energy from that customer-owned 2kW portion is then credited to that customer, as if it were on his or her own rooftop. They can move anywhere within the utility’s territory and still get credit for their solar share.

• Banks and credit unions can make loans for solar installations, but questions remain — such as, what happens to a PV installation if the borrower goes into default? Does the bank repossess the solar panels? Until these questions are answered, many lenders may remain on the sidelines.

Today’s homeowner or business owner who wants to fi nance a solar installation has more choices than ever, and that means more opportunities for solar project developers. Financing will help bring us one step closer to “grid parity,” where solar costs the same, or less, than utility power — even without state incentives.

KYOCERA and Gatorade: Still Going Strong

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14 The Key S P R I N G 2 0 1 5

S AVVY CONSUMERS AND BUSINESSES RELY on independent, third-party testing to guide major purchase decisions.

And that’s good news for Kyocera.Buyers Laboratory Inc. (BLI) is the

imaging industry’s leading independent authority for testing and reviewing multi-functional printer, copier, scanner and software solutions products — more commonly known as “MFPs.” In January, MFPs from Kyocera Document Solutions America received ten BLI “Winter Pick 2015” awards for unprecedented reliability, exceptional color output and outstanding environmental features. Advanced capabil-ities across Kyocera’s entire MFP range stood out to attain BLI’s prestigious awards.

The accolades come after months of rigorous testing, which saw Kyocera products surpass others in reliability and win top marks for image quality. Special mention was made of Kyocera’s HyPAS software development platform, which allows for integration with an extensive number of Kyocera-developed business applications and third-party-partner products.

“Time and again, Kyocera impresses us with their consistency across product lines and their clear emphasis on convenience for the end user,” said Pete Emory, BLI Director of Laboratory Testing.

Kyocera’s TASKalfa 8001i, 3510i and 3010i were honored in the monochrome MFP category, while the TASKalfa 7551ci, 6551ci and 3551ci were the winners in the color MFP category. All in all, the devices stood out most for their exceptional reliability and ease of use.

For exemplary image quality and business applications compatibility, the ECOSYS M3550idn was honored with the BLI Winter Pick 2015 for “Outstanding A4 Monochrome MFP for Mid-Size to Large Workgroups.”

Kyocera’s ECOSYS M3560idn, M3550idn and M6526cdn were awarded for achievement in energy effi ciency —consuming about 45 percent less power than the competitive average — and for incorporating innovative energy-saving features, such as a toner-save mode and proof mode, that help reduce paper and consumables waste.

“At Kyocera, our primary objective is to resolve an organization’s business challenges through a total document solutions approach,” said Danielle Wolowitz, Senior Director of Corporate Marketing. “This proven approach allows Kyocera to leverage its device technology, business applications and customized services in a way that satisfi es the customer’s need for performance, reliability and value.”

TASKalfa 3510 was one of three Kyocera monochrome MFPs commended by Buyers Laboratory Inc. for exceptional reliabilityand ease of use.

KYOCERA Document Solutions Wins 10 Buyers Laboratory AwardsReliability, high average toner yield, and long-life print drum result in a very low “total cost of ownership”

ECOSYS M3560idn was one of three Kyocera ECOSYS MFPs awarded for outstanding achievement in energy effi ciency – consuming about 45 percent less power than the competitive average and incorporating innovative, energy-saving features such as toner-save mode and proof mode.

TASKalfa 7551ci was one of three Kyocera winners in BLI’s Color MFP category.

15 S P R I N G 2 0 1 5 The Key

K YOCERA DOCUMENT SOLUTIONS America (KDA) encourages its dealers to solve customers’

critical business challenges by effectively utilizing Kyocera’s extensive portfolio of support resources. These include hardware, software, and both pre- and post-sales services to demonstrate a “designed solution” that can increase workfl ow effi ciency and maximize productivity.

In 2014, KDA held its second Taking Care of Business Total Document Solutions (TDS) Consultant Contest, giving its Kyocera and Copystar dealers the opportunity to strut their stuff. Sales reps demonstrated via video submission their TDS sales skills, showing how they “take care of business” to meet customers’ evolving needs.

Kyocera headquarters staff reviewed hundreds of video entries to ensure that only the best moved on to the regional level, where dealers and KDA staff voted for their favorites through an intranet site. Ten reps made it to the “Taking Care of Business 2.0” national fi nals, where they presented their unique TDS sales approach to a live panel of judges, and two emerged victorious:

• Kyle Riggins of Technocom in Charlotte, N.C., a Kyocera dealer; and

• Scott Gary of Absolute Business Solu-tions in Panama City, Fla., a Copystar dealer.

“Kyle and Scott effectively demonstrated how they utilize a Kyocera TDS approach in daily sales activity, and how it assists them in truly differentiating Kyocera products

from the competition,” said Danielle Wolowitz, Senior Director of Corporate Marketing. “They successfully designed and implemented solutions consisting of Kyocera hardware and business applications to improve workfl ow effi ciency.”

As the national winners, Kyle and Scott and their guests visited Japan in November with KDA representatives Mark Scruggs, Terry Martin and Danielle. The seven-day tour included trips to Tokyo, Nara, Hakone and a visit to KC headquarters in Kyoto.

At Kyocera Document Solutions Corporation (KDC) headquarters in Osaka,

highlights included meeting Katsumi Komaguchi, KDC President, and a guided tour of KDC’s Research and Development areas. Kyle and Scott presented their TDS sales success to Norihiko Ina, KDA’s President and CEO, along with a group of key individuals from KDC’s sales division.

It was the trip of a lifetime, and both winners have expressed interest in participating in KDA’s future renditions of the TDS Consultant Contest.

Where is KYOCERA?

K YOCERA’S SOLAR MODULES PROVIDE A RELIABLE, LONG-TERM POWER solution both on and off the utility grid. In remote locations without utility access, Kyocera’s stand-alone systems electrify

homes and power essential infrastructure, including wireless base stations, emergency communications, irrigation, railway signaling and street lighting.

Seattle’s Elliot Bay Seawall, which has protected the waterfront for 70 years, is now being refurbished. Because construction is being performed close to sensitive structures, GEO-Instruments has provided its Automated Total Stations (AMTS) for continuous site monitoring throughout the course of the project. AMTS stations take hourly site readings and transmit the data by cellular modem for processing and review. GEO-Instruments chose high-quality, reliable Kyocera solar modules to ensure a successful, 24/7 monitoring program. By employing a stand-alone solar solution, GEO-Instruments and the city of Seattle have discovered that Kyocera solar technology is effective, rain or shine.

KYOCERA Contest Showcases Total Document SolutionsDealers videotape successful sales techniques for a chance to win a trip to Japan

Travelers meet with top management at KDC headquarters. Seated, from left, are Jim Riggins, winner Kyle Riggins, KDC President Katsumi Komaguchi, winner Scott Gary, and Jaime Gary. Standing, from left, are Mark Scruggs, KDA; Takashi Kuki, KDC Managing Executive Offi cer and GM-Corporate Sales; KDA President Norihiko Ina; and KDA’s Terry Martin and Danielle Wolowitz.

The visitors enjoy a warm welcome from KDC’s Yuka Kimura and Aisaku Otsuki in Osaka.

Kyocera solar panels power GEO-

Instruments’ automated monitoring devices for

a construction site near the famous Pike Place

Market in Seattle.

16 The Key S P R I N G 2 0 1 5

KYOCERA Introduces Software to Prevent Data Security Breaches

Data security breaches represent a potential disaster for business enterprises. In 2012, Kyocera Corporation acquired security-software maker Motex, which is now a subsidiary of KC Communication Systems Co. (KCCS). Motex’s software, called Lanscope Cat, holds top market share in Japan. KCCS recently opened an offi ce in San Jose, Calif., to enter the U.S. market, with a prospective launch date of June 2015. Lanscope Cat helps companies control internal security breaches, manage asset portfolios, and prevent data loss. KCCS is currently testing Lanscope Cat with KAI. Pictured above, team members attend the Amazon Web Services “re: invent” confer-ence in Las Vegas to meet potential clients. From left are Hideko Uchiyama, Terry Aizawa, Kotone Sakamoto, Tatsuya Gonokuchi, Masa Hashiguchi, Takuya Nakamoto and Thomas Spargo.

K YOCERA STRIVES TO CONDUCT BUSINESS IN AN ETHICAL MANNER. As our annual Code of Conduct training emphasizes, we expect a high level of integrity from ourselves and others.

“Kyocera is committed to an environment where open, honest communications are the expectation, not the exception,” said Rob Stevens, KII Director of Human Resources. “We want employees to feel comfortable approaching management if they believe violations of law, policies, internal controls or standards have occurred.”

Examples of such violations include, but are not limited to, theft, fraud, confl icts of interest, kickbacks, inappropriate or excessive gifts, bribery, and threats to employee health and safety.

If an employee doesn’t feel comfortable approaching a supervisor about a violation, Kyocera has implemented an anonymous reporting method — the Code of Conduct Hotline:

• 1-844-773-2568 from the U.S.• 6-24-9003 from Tijuana; 1-664-624-9003 from other Mexican cities Employees can also report wrongdoing anonymously via the internet

at the designated website kyocerainternational.ethicspoint.com After thorough research by Phil Popp, KII Director of Internal Audit,

Kyocera contracted third-party vendor Ethics Point to monitor the hotline and website while ensuring employee anonymity. Each report will be issued a case number to allow anonymous dialogue with those investigating the incident and to protect the reporting individual’s identity.

Remember: there is no penalty for speaking up. You don’t need hard evidence — KII-G’s management is ultimately responsible for the investigation of and appropriate response to reports.

“Any unethical behavior, on any level, would hurt our company,” Rob continued. “It is each employee’s responsibility to speak up and identify a potential breach of ethics if they believe they see it.”

Do the Right Thing: If You See Wrongdoing, Speak Out!KYOCERA launches anonymous Code of Conduct hotlines for U.S. and Mexico

Bright posters in all Kyocera facilities encourage employees to do the right thing if they witness questionable behavior: Speak Out!

K YOCERA STRIVES TO PROVIDE A SAFE WORKPLACE FOR ALL employees. There is recent indication that focusing on best safety practices is having an impact: seven KII-Group

locations have achieved the milestone of 1,100 days — more than three years — without a “lost time” accident. They include KCI, KSI-Scottsdale, KII, KPTI-Ohio, KPTI-N.C., KMX Metallized, and the KICC-N.C. Fine Ceramics Division.

To further energize its safety program, Kyocera is sponsoring a KII-Group Safety Poster Contest with cash prizes. The winning poster will be printed in The Key. To enter, create an original concept promoting the importance of good safety practices in either electronic or hand-drawn format. Email your concept by April 6 to dan.brown@kyocera.com. Good luck, and please continue your good efforts to keep Kyocera an accident-free workplace.

KYOCERA Safety Poster Contest: Entries Due April 6

17 S P R I N G 2 0 1 5 The Key

15 YearsJerry Aguirre, KAI Laura Elia Aragon, KMXEmmanuel Dominguez, KMXRalph Gonzalez, KAITomoaki Hirano, KPTITakayuki Morikawa, KICCMichael Schimmels, KICCSteve Simpson, KCIYoshiaki Suzuki, KCIClaudia Ines Torres, KMX

10 YearsAngel Alvarez, KMX Maria Teresa Carranza, KMXDonald Glover, KAIShinichi Higashio, KICCYo Hitaka, KAIConnie Ho, KPTIDavid Hyatt, KPTITetsuro Kaneuji, KSIQuynh Mai, KAI

10 Years (cont’d.)Yasuo Nishijima, KAINitzia Paola Paredes, KMXPhosay Ratsabout, KAIGabriel Rizo, KMXRyusuke Satoh, KIINeal Strohmeyer, KAIKei Takamoto, KICCAkihiro Tamura, KAITuan Tran, KAIMahiro Tsujino, KAI

5 YearsBrenda Yaneth Alfaro, KMXJose Benigno Arechiga, KMXCarmen Alicia Ayala, KMXRomantino Catabay, KICCMaria de los Remedios de la Cruz, KMXPatricia Estrada, KMXMarco Antonio Galindo, KMX Fernando Giron, KMXMaria del Belen Gutierrez, KMX

Employee Service Milestones for March, April and May

35 YearsElena Barrozo, KAIRosario Espiritu, KAITsutomu Yoshida, KAI

30 YearsTomotoshi Kurita, KAI Masato Matsui, KICCKoichi Nosaka, KPTIYasuhiro Oishi, KCI

25 YearsYoshikazu Fujimoto, KPTI Alberto Gonzalez Hernandez, KPTIErnest Vinas, KAI Makoto Yoshioka, KPTI

20 YearsVeronica Aguilera, KMX Maria Altamirano, KAI Daisy Balino, KAI Lonnie Bradford, KAIShamone Braxton, KAISean Bryson, KICCJose Juan Garcia, KMXArcelia Gonzalez, KAIJavier Guerra, KPTILlena Hamada, KAIEsperanza Ignacio, KAITeodocia Jarin, KAIKim Malis, KICCMa Elena Miranda, KMXJose Mondragon, KAIKevin Pannary, KAICharito Punzal, KAIRobert Rhine, KICCInes Adriana Rodriguez, KMX Jesus Sanchez, KAIMichael Scott, KAIBrian Shea, KPTIKaren Smith, KCIJoseph Tutka, KICCLucia Vasquez, KAIShinya Watanabe, KICCOllie Williams, KAIRowena Yamada, KAI

K AI’S CHARLOTTE FUNK IS AN INSPIRATION. SHE started her Kyocera career more than 41 years ago as an hourly employee in 1973, and worked

her way up to retire in January 2015 from a managerial position. In more than four decades, she watched the company grow from a start-up enterprise in a “ramshackle little building on Kearny Villa Road” to the powerhouse it is today.

Though she retired as KAI’s Human Resources Manager, Charlotte’s career path wasn’t direct. She began as an Inspector Trainee in the Quality Group, worked her way up to supervisor and helped establish the quality department at KMX. She moved into Training and Development, and eventually became HR Manager.

“In my heart, I’m still a Quality Department person; I appreciate a job well done,” she notes. “Training is key — we need to focus on structured, organized training that enables employees to perform quality work.”

Charlotte attributes her success at Kyocera to tenacity and a “never give up” attitude. “When things got rough, I buckled down. The people who work here and the Kyocera Philosophy are worth staying for; I always tried to fi nd new ways to add value to the organization.”

In retirement, Charlotte will contribute to the community as an adult literacy tutor and volunteer at a no-kill animal shelter. She also plans to take a couple of classes and give her garden some overdue attention. We wish her all the very best!

KAI’s Longest-Tenured Employee, Charlotte Funk, RetiresIn 41 years with KYOCERA she contributed in multiple roles

Charlotte’s badge photos

throughout the years prove that

she always remains cheerful!

Charlotteis looking forward to a productive retirement schedule.

5 Years (cont’d.)Claudia Araceli Hernandez, KMX Juan Manuel Hernandez, KMXMarisela Hernandez, KMXDaniel Hood, KSIDinah Lieu, KAIJulia Martinez, KMXRoberto Francisco Martinez, KMXFaustino Mateos, KMXMasayuki Mizuno, KAIJose Juan Murguia, KMXFlor Denisse Olivas, KMXMiguel Angel Perez, KMX Elizabeth Ramirez, KMX Maria Luisa Ramirez, KMX Araceli Ricardez, KMX Ramiro Rodriguez, KMXLaura Sanchez, KMXGerardo Solis, KMXLaura Torres, KMXKathleen Victoria, KICCJennilee Wu, KAI

18 The Key S P R I N G 2 0 1 5

S TROKE IS THE NO. 5 CAUSE OF DEATH and a leading cause of disability in the United States. It is important to

know the warning signs of a stroke so you can seek immediate medical treatment for anyone who may be experiencing stroke symptoms.

Stroke is a disease affecting arteries both within, and leading to, the brain. A stroke occurs when a vessel in the brain ruptures or is blocked by a blood clot. When this happens, part of the brain may be unable to get the necessary supply of oxygen.

The chances for survival and recovery are best if the stroke is identifi ed and treated immediately — so it’s crucial to know the warning signs. These include the sudden onset of symptoms such as:• Facial drooping• Arm weakness• Speech diffi culty • Confusion or trouble understanding • Diffi culty seeing in one or both eyes • Trouble walking, dizziness, loss of balance or coordination• Sudden severe headache

If you think someone may be experiencing a stroke, ask him or her to stick out their tongue. If the tongue is crooked, or goes to one side or the other, it may be an indication of stroke.

There are two types of strokes. Ischemic stroke, the most common, occurs as a result of an obstruction within a blood vessel supplying the brain. Hemorrhagic stroke occurs when a weakened blood vessel ruptures, spilling blood into brain tissue.

The good news is that 80 percent of all strokes are preventable by managing key risk factors, including high blood pressure, cigarette smoking, atrial fi brillation and physical inactivity. More than half of all strokes are caused by uncontrolled high blood pressure, making this an important risk factor to address in our everyday wellness regimen.

When a stroke occurs, quick treatment saves lives and improves the potential for complete recovery. Therefore, if you ever observe anyone who may show symptoms of stroke, do not delay. Immediately call 9-1-1 or emergency medical services. You may save a life!

Strokes: Know the Warning SignsImmediate treatment saves lives, dramatically improves recovery

Question of the Month: “What is Your Favorite Saying or Quote?”

“Thomas J. Watson, the president of IBM, said, ‘If you want to increase your success rate, double your failure rate.’ It

reminds me that the only way to guarantee failure is to never try.” — Juan Suros, KII Sr. SAP Programmer/Analyst

“‘We, in customer service, are the door to our business doing well.’ You can make a customer’s day by giving good customer service

and make a new contact who values your company!” — Leah Carrasco, KPTI Customer Service

“Last month I found myse l f thinking, ‘How did that happen?’ I was reminded of a favor i te quotation, claimed

by several authors: ‘There are three types of people — those who make things happen, those who watch things happen, and those who ask “what happened ?” ’ It was very uncomfortable to realize I had fallen into that third group. It was time to kick Mr. Complacency out and get back in the game. In the process of ‘making things happen,’ I realized my stress level was decreasing, my performance level was increasing, and I was having more fun.” — David O’Dell, KICC NPI Senior Engineer

“I have three: ‘Success is never owned; it is leased and the rent is due every day;’ ‘Wise persons learn more from fools

than fools will ever learn from the wise,’ and ‘Success is a lousy teacher. It seduces smart people into thinking they can’t lose.’ ” — Frank Bowers, KICC Production Scheduler

“It’s by Henry Rollins: ‘In winter, I plot and plan. In spring, I move.’ I agree that it’s time to execute what’s been prepared all

along.” — Kenzo Yukawa, KSI Engineering Technical Liaison

“I have always thought that life is like an open book, and when we read it on a daily basis, it teaches us that

if we live our lives based on love and with faith, we will be able to do everything! This teaching gives us the satisfaction that when we practice what we learned with humility, simplicity, and tenacity while always looking for the essence of what we do, we will get great results, personally and professionally and in everything around us. For me it is happiness when I get good results and can say: ‘I succeeded!’ The book of life is a book I read well!” — Carmen Garcia, KMX Accounting Specialist

Signs of Stroke?Think F.A.S.T.

The acronym F.A.S.T. can help us remember sudden signs of stroke. When you see these signs, you’ll know that you need to call 9-1-1 for help right away. F.A.S.T. stands for:

Facial Drooping: Does one side of the face droop, or is it numb? Ask the person to smile. Is the person’s smile uneven?

Arm Weakness: Is one arm weak or numb? Ask the person to raise both arms. Does one arm drift downward?

Speech Diffi culty: Is speech slurred? Is the person unable to speak or hard to understand? Ask the person to repeat a simple sentence, like “The sky is blue.” Is the sentence repeated correctly?

Time to call 9-1-1: If someone shows any of these symptoms, even if the symptoms go away, call 9-1-1 and get the person to the hospital immediately. Note the time so you’ll know when the fi rst symptoms appeared.

19 S P R I N G 2 0 1 5 The Key

When our motivation comes from our desire to help others, we can be at peace with the decisions that we make and the outcome that is generated. Not because we are freed to lay blame on the other group members for failing to paddle in the same direction, but because we consciously made decisions and efforts with a pure mind that were focused on the common good.

Working for the benefi t of the group should also provide us with an opportunity to create true passion for our work. In contrast, working solely for personal satisfaction and enrichment yields little in the way of enduring work satisfaction.

As we embark on a new fi scal year of challenges, let us commit to working more closely with each other to ensure the happiness and success of our teammates; remembering to listen, give, encourage, follow up, and be grateful.

R EADY FOR A FUN, FAMILY OUTING where you can learn how to live a more Earth-friendly lifestyle?

Save the date: on Tues., April 21, Kyocera will host its third annual Earth Expo at 11a.m. under the Solar Grove at its San Diego headquarters. Free and open to the public, the event will feature dozens of vendors with information on sustainability, recycling and reducing carbon emissions. Attendees can learn about solar energy, organic foods and electric cars and bikes.

Sales of energy-saving LED light bulbs, gourmet food trucks, giveaways and raffl es are a popular tradition at this festive event, which will feature an earthquake simulator this year. You can bring your e-waste — retired cell phones, old computers and other small electronics — for proper disposal.

Kyocera’s Earth Expo provides a fun, community-based opportunity to improve your environmental awareness. And, it’s a great way to celebrate Earth Week!

Marketing Events CalendarDivision Trade Show Date & LocationKCI Mobile World Congress Barcelona, Spain; March 2-5KICC Consumer Int’l. Home & Housewares Show Chicago; March 7-10KCI Corrigo User Conference Las Vegas; March 16-18KAI IMAPS Conference Fountain Hills, AZ; March 17-18 KAI Optical Fiber Conference Los Angeles; March 24-26KCI U.S. Snowboard Championships Copper Mtn., CO; March 28-29KPTI Precision Mfg. Tech Show Columbus, OH; April 21-23KAI SPIE: Defense, Security & Sensing Baltimore, MD; April 21-23KAI MTTS Symposium Phoenix; May 19-21KAI ECTC Conference San Diego; May 27-28

KYOCERA ADR Stock Update

Teamwork, Cont’d. from p. 3

Our 12-month stock performance as of March 9, 2015

KII’s Corporate Business Systems group is welcoming a new face. After seven years in San Diego, CBS General Manager Masa Goto will return to Japan. The group welcomes Tomochika Aoyama as the new GM of CBS. Tomo hails from KC’s Business Systems group, where he gained experience producing detailed accounting and fi nancial reports daily to help amoebas monitor their business situation and take swift action where necessary to achieve their goals.KII-CBS will continue to champion the Amoeba Management System to help Kyocera succeed. From left are Jeff Iwami, Deputy General Manager; Masa Goto, Tomochika Aoyama and Krista Carlson, Corporate Ringi Coordinator.

Changes at KII Corporate Business Systems

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“Windy and Shadow,” by Beth Corn, KICC, Hendersonville, NC (Weekends)

“Willow,” by Ilene Long,

KAI, San Diego (Pet-Capades)

Galloping Toward Spring

“Sunset over La Jolla Cove,” by Faustino Ramirez, KCI, San Diego (Weekends)

“Stepping Stone,” by Marcelina Jauregui,

KAI, San Diego (Pet-Capades)

“Keygan Cuddles MoMo,” by

Deanna Svehla,KII, San Diego(Pet-Capades)

“The Art of Feline Relaxation,” by

Gabriel Hernandez,KMX, Tijuana

(Pet-Capades)

B ETH CORN’S MISSOURI FOX TROTTERS, WINDY AND SHADOW, love the snow — and enjoyed plenty of it over the winter. “When my husband let them out of the barn, Windy

picked up her head and ran, with Shadow in close pursuit,” Beth explained. “Whenever our horses play in the snow, it’s always a photographic moment.” For her winning photo, Beth receives a $150 gift certifi cate redeemable for Kyocera merchandise.

Our employee judges on KyoSphere also chose fi ve photos that deserve honorable mention:

• KII’s Deanna Svehla captured a moment of pure happiness between her Godson, Keygan, and new puppy, MoMo.

• KMX’s Gabriel Hernandez shares a photo of 11-year-old Yuyi relaxing in an artistic pose, as cats are known to do so well.

• KAI’s Marcelina Jauregui has a smart cat named Salt who fi gured out the best way to quench her thirst in the garden.

• KAI’s Ilene Long can’t resist the beautiful brown eyes of Willow, her cream Standard Poodle, when she wants attention.

• KCI’s Faustino Ramirez sends a postcard-worthy image of San Diego’s famous La Jolla Cove at sunset. Gorgeous!

If your camera or phone is brimming with great images, why not enter our next photo contest? It’s easy, and seeing your photo in The Key would be priceless!

UPCOMING CONTEST DETAILS:

Summer 2015 EditionSuggested Themes:

Water, Looking Up or Flowers EverywhereDue Date: April 24

Autumn 2015 EditionSuggested Themes:

Autumn, Shadowplay or Rainbow of ColorDue Date: July 24