A Better Kyocera
A Case for Change
Oasis has called for substantial structural reforms at Kyocera as part of its “A Better Kyocera” campaign.
In response, Kyocera has taken some steps, but these have been far too limited and demonstrate that Kyocera is stuck in the past.
To facilitate the necessary transformation, Oasis has submitted formal shareholder proposals for Kyocera’s upcoming June 2026 Annual General Meeting of shareholders (“AGM”) calling for:
(i) a JPY 350 billion share buyback in fiscal year ending March 2027;
(ii) the removal of Chairman Goro Yamaguchi; and
(iii) the appointment of Kotaro Okamura as an external director.
Oasis Demands for Change
Under pressure from a plummeting approval rate, Kyocera’s management have announced some changes, however, these changes do not address the Company’s key issues. Even if Kyocera fully implements its plan, the Company will remain over-diversified, over-capitalized with a low return on equity (ROE) and retain a worrying lack of focus on core businesses.
Against this backdrop of persistently low ROE and abnormally high-levels of cross-shareholdings, Oasis believes this is the right time for Kyocera to take bold decisions.
Oasis has developed a seven-point plan for Kyocera, set out below, that Kyocera should execute to turn around the company.
Oasis Demand
Why?
| 1 | Divest non-core business amounting to ~30% of revenue | Streamline overly diversified portfolio |
| 2 | Exit Organic Packages | Prevent further losses |
| 3 | Restructure KAVX | Achieve industry-leading profitability |
| 4 | Stop losses by terminating investment in GaN and millimeter-wave technologies | Implement oversight in R&D and reduce soaring losses for products that are unlikely to achieve a return on investment and invest in the core business. |
| 5 | Focus on core competencies to capture untapped opportunities | Capture untapped opportunities in ceramics |
| 6 | Commit to aggressive M&A | Reinforce core businesses through M&A |
| 7 | Buyback of JPY 1 trillion over the next four years amounting to approx. 37% of the Company | Review overcapitalized balance sheet and Improve capital efficiency |
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About Oasis
Oasis is a long-term Japan engagement investor. Oasis invests in companies that are trading substantially below their intrinsic value and works, when necessary, through engagement to increase the companies’ intrinsic and market value.
