1 W I N T E R 2 0 1 5 - 1 6 The Key

In this issue:

• KYOCERA Celebrates 40 Years of Solar Power Technology

• KII-Group Focuses on KYOCERA Philosophy Education

• KYOCERA Mexicana Earns Clean Industry Level II Certifi cation

• Give KYOCERA Quality Gifts for the Holidays

WINTER 2015-2016 EDITION

PUBLISHED FOR THE EMPLOYEES

AND FRIENDS OF KYOCERA’SNORTH AMERICAN GROUP COMPANIES

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Key

2 The Key W I N T E R 2 0 1 5 - 1 6

KMX achieves Clean Industry Certifi cation, Performance Level II, for the fi rst time.

KII-Group companies convene for second annual Global Philosophy Seminar.

© 2015 by Kyocera

Publisher: Jay ScovieEditor: Anne Wallis Droter

Contributors:John Hatakeyama, Meridith Marquis, KAI; John Chier, Raina Rutlen, KCI; Denise Bernstein, Whitney Brinlee, Brent Parker, April Schultheis, KICC; David Hester, Erika Fukushima, Salvador Hernandez, KMX; Jeff Bratt, Kelly Endel, Mark Gardiner, KPTI; Ginny Schulz, Belinda Martinez, KSI; Ed Luna, 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.

In This Issue . . .Follow Your Philosophy, by Dr. Kazuo Inamori ............................................3Let KYOCERA Philosophy Be Your Inner Compass, by Nick Huntalas ...3KYOCERA Celebrates 40 Years of Innovation in Solar Energy ................4KYOCERA’s Historic Milestones in Solar...................................................... 5KYOCERA Aims for Leadership in Rugged Phones Market ......................6KYOCERA DuraForce XD “Phablet” to Launch with AT&T.................... 7Insurer Honors KYOCERA with “Highly Protected Risk” Status ............. 8KYOCERA Mexicana Earns Clean Industry Certifi cation: Level II........... 9Give KYOCERA Consumer Products for the Holidays ............................10KYOCERA High-Speed Milling Tools Enhance Quality and Effi ciency.... 11KYOCERA Solar to Appear on Next Home PBS TV Series.......................12KYOCERA Supports Innovative Community Solar Array Program ........ 13KSI’s Hitoshi Atari’s GPS-2 Address on Collective Will Power ..........................14Global Philosophy Seminar Focuses on “Aiming High”............................. 15KYOCERA Marketing & Tradeshow Round-Up .........................................16Employee Service Milestones .......................................................................... 17Question of the Month: What Did You Learn in Philosophy Training?.... 19Photo Contest .................................................................................................... 20Key

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The non-profi t Inamori Foundation presented its 31st annual Kyoto Prizes on Nov. 10 in Kyoto, Japan, honoring Dr. Toyoki Kunitake, a Japanese chemist; Dr. Michel Mayor, a Swiss astrophysicist; and John Neumeier, an American choreographer and artistic director of Germany’s Hamburg Ballet. The laureates will reconvene in San Diego March 15-17, 2016, for the 15th annual Kyoto Prize Symposium, which is free and open to the public. Event registration will open in January at www.kyotoprize-us.org for those wishing to attend.

On Our Cover:

Black Diamonds

y ,for the fi rsssrrsrsst tttttt tittitititittttitt memmemmemememememememmeme.

Kyocera celebrates 40 years of continuous innovation in the solar energy industry.

InamoriFoundationPresents 2015 Kyoto PrizeLaureates

Next Stop, San Diego

Downhill skiers know the black diamond signifi es the most challenging mountain slopes, with grades of 40% or steeper. But even a double-diamond run represents a trail someone else has already established. KMX President Dave Hester recently inspired Kyocera leaders with a true story of how the world’s leading trail runner blazed his own path to set a new speed record for climbing and descending North America’s highest mountain peak. Read a summary of this incredible story on page 18, adapted from Dave’s lecture at Kyocera’s 2015 Global Philosophy Seminar.

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S INCE 1975, KYOCERA HAS BEEN AT THE forefront of developing renewable energy with solar modules, and the

future is brighter than ever. After four decades of research, development and mass production of photovoltaic (PV) module solutions, Kyocera has earned such titles as “Performance Leader” and “Global Innovator.” Most recently, Kyocera was the only solar module manufacturer to rank as a “Performance Leader” in all six categories of independent testing by PV Evolution Labs, as reported in GTM Research’s July 2014 PV Module Reliability Scorecard.

Kyocera’s entry into solar energy was prompted by the energy crises of the 1970s, when OPEC-led oil supply disruptions created public interest in renewable energy. In 1975, Kyocera established the Japan Solar Energy Corp., a joint venture of fi ve companies to research and develop solar cells. Within four years, the company was providing commercial solar power systems of several kilowatts in scale.

In the early 1980s, Kyocera established a dedicated solar R&D facility in Shiga, Japan, and became the fi rst company worldwide to mass-produce multicrystalline silicon solar cells using the casting method — today’s industry standard.

In 1984, Kyocera established the Sakura Solar Energy Center to introduce solar energy to society on a larger scale.

By the mid-’80s, Kyocera PV systems were bringing electricity to previously unelectrifi ed regions of Pakistan, Thailand and China. These development efforts paid off as Kyocera set its fi rst world record for solar energy conversion effi ciency from multicrystalline silicon solar cells.

Larger commercial projects, residential solar, and even solar-powered race cars became a reality in the 1990s. Kyocera’s “Son of Sun” solar car placed third in the 1993 World Solar Challenge, an all-solar race across the continent of Australia.

During this period, Kyocera installed its fi rst grid-interfacing solar system in Japan, and raised production capacity to 6 megawatts per year, the most in Japan at that time. By 1993, Kyocera had begun marketing residential solar power systems, and Japan’s government initiated subsidies to promote residential solar applications.

Kyocera Solar Corp. was established to integrate system sales, installation and maintenance. In 1999, Kyocera Solar, Inc. was established in Scottsdale, Ariz., to serve the Americas and Australia.

By 2005, distribution of Kyocera solar power generating systems expanded worldwide with production facilities in Japan, China, Mexico and Europe, and manufacturing capacity ultimately increasing to 1.2 gigawatts per year. Kyocera achieved another world record in energy

conversion effi ciency from multicrystalline silicon solar cells. In the U.S., Kyocera unveiled the fi rst “Solar Grove” parking structure in San Diego. In Japan, Kyocera supplied solar modules for the Toyota Prius solar ventilation system, an optional feature for the award-winning hybrid car.

Kyocera aims to provide solutions that are right for the times. In response to the Great East Japan Earthquake and Tsunami of 2011, Kyocera began producing new solar power systems compatible with long-lasting, high-capacity lithium-ion batteries. While looking for effi ciencies, Kyocera developed an innovative home energy management system to optimize energy consumption in the home.

Since April 2015, Kyocera has made global headlines by completing three fl oating mega-solar plants on freshwater ponds and reservoirs in Japan. Our latest projects on abandoned golf courses show the resourcefulness of a company that consistently opens new frontiers.

Kyocera will continue to drive the industry while improving human lives and the environment, as refl ected in the words of our founder, Dr. Kazuo Inamori: “Creativity is not just for the development of advanced technology. Apply ingenuity to all matters and continue to improve. Today should be better than yesterday: tomorrow, better than today.”

KYOCERA Celebrates 40 Years of Innovation in Solar Energy

Company’s research into photovoltaic solar cells, sparked by the energy crises of the 1970s, has enhanced millions of lives by providing clean, renewable energy that helps reduce carbon emissions

RESIDENTIAL, TOO: In addition to mega-solar installations, Kyocera offers options for resi-dential customers including fi nancing, power purchase agreements and a home energy management system that optimizes the use of solar power to reduce your electric bill.

THAT’S INNOVATIVE: About half of Brazil’s new 145-kilometer Arco Metropolitano highway is illuminated at night by solar streetlights, powered by Kyocera PV modules — 3.2 megawatts in total.

9 W I N T E R 2 0 1 5 - 1 6 The Key

K YOCERA REGARDS ENVIRONMENTAL regulations as our minimum standard, often adopting internal

limits that are even more demanding than those required by law. This was recognized once again in September as Kyocera Mexicana, S.A. de C.V. (KMX) and its manufacturing partners, KAI, KSI and KPTI, were honored by PROFEPA, Mexico’s Federal Environmental Protection Agency, for our Baja California operations.

“Kyocera is proud to be one of only three companies in Baja California to receive PROFEPA’s 2015 Industria Limpia (Clean Industry) Performance Level II certifi cation,” said Dave Hester, KMX President. “We continually strive to improve our environmental performance because

reducing waste, conserving resources and promoting energy effi ciency are key elements of our Kyocera Philosophy.”

Kyocera’s latest Industria Limpia certifi cation represents our fourth consecutive one, and the fi rst time we have achieved Performance Level II. KMX is also registered to the ISO14001 standard for environmental systems management.

As part of our commitment to do even better than “full compliance” with environmental regulations, Kyocera monitors its environmental impact in such areas as wastewater discharge, total water consumption, groundwater and soil quality, solid and liquid wastes, energy consumption, atmospheric emissions, and environmental emergency preparedness.

KMX currently recycles 88% of its total standard waste materials, and is targeting 95%. It operates a 100-kilowatt rooftop solar array that offsets about 125 tons of carbon dioxide annually.

KMX also recycles water from its internal manufacturing processes; utilizes water-absorbing polymers to reduce landscape irrigation by up to 40%; and promotes environmental awareness in the work force through employee involvement and education activities.

“We are delighted to receive this honor,” Dave stated. “We want consumers who use Kyocera products to know they are purchasing quality goods manufactured by a company with a true commitment to environmental preservation.”

KYOCERA Mexicana Earns Clean Industry Certifi cation: Performance Level II

Company is one of only three in Baja California to achieve Level II PROFEPA honor

ABOVE AND BEYOND: KMX employees celebrate their latest Clean Industry certifi cation from Mexico’s Environmental Protection Agency, PROFEPA. Team members include Miguel Gomez, Salvador Loera, Gerardo Esparza, Olga Lopez, Jorge Zazueta, Laura Aragon, Dave Hester, Manuel Garcia, Cinthia Torres, Noe Cruz, Jorge Rochin, Jose Luis Tapia (PROFEPA), Oscar Gonzalez, Sergio Lee, Martin Navarro and Julio Heredia.

Team KMX at GPS-2

◄ INSPIRING ESSAY: As the GPS-2 fi nale, Oscar Gonzalez read his fi rst-place Kyocera Philosophy essay, which focused on his family — and how his son, Andres, overcame diffi cult physical challenges to excel through hard work, perseverance and a never-give-up attitude.

▲ RESULTS-ORIENTED: Javier Juarez, Dave Hester and Mizael Sarmiento outlined KMX’s production expansion, and how it aligns with the “aim high” principle of the Kyocera Philosophy.

▲ A DELICIOUS TRADITION AT KMX: Each November, KAI colleagues bring pumpkin pies to KMX as a thank-you to administrative staff for their daily support of the KAI manufacturing operations. Bob Whisler explains the history of Thanksgiving in the U.S. and why pumpkin pie and turkey are traditional symbols of celebration and prosperity. Happy Holidays!

13 W I N T E R 2 0 1 5 - 1 6 The Key

T HE CARIBBEAN OFFERS A TEMPERATE CLIMATE, BEAUTIFUL BEACHES, AND some of the highest electric power fees in the world — which drives local businesses to seek innovative ways of reducing costs.

More and more, local companies are turning to Kyocera solar photovoltaic (PV) systems for a highly reliable and economical solution.

Dynamic Solar Solutions recently installed a 24.75kW Kyocera solar electric system on the roof of the Emilio Bacardi Group headquarters building in Puerto Rico. The system will produce 34,533 kilowatt hours (kWh) annually — offsetting 100 percent of the building’s power needs — and is expected to pay for itself within fi ve years, thanks to government incentives covering 30 percent of the total cost.

The Emilio Bacardi Group is the owner of Caribbean Energy Distributor Corp., Dynamic Solar Solutions (DSS), and eight related corporations.

“We offer Kyocera solar panels exclusively to our customers because of their longstanding proven high quality. So, it was an easy decision when it came to providing a solar system for our parent company,” said Juan Carlos Díaz-Galarza, V.P. of Operations for Caribbean Energy Distributor Corp.

“Kyocera solar modules have a track record for providing long-term, reliable PV electricity that supports businesses by stabilizing electricity costs to promote further growth,” said Hitoshi Atari, KSI President.

“We are delighted to help companies prosper with such an environmentally friendly method of producing electricity.”

U NLIKE UTILITY COMPANIES, THE SUN doesn’t charge for the energy it produces. However, harnessing

that energy with Kyocera solar panels has generally not been an option for renters or homeowners with shaded roofs. With this in mind, Kyocera Solar, Inc. recently announced an innovative Community Solar Array (CSA) program in Vermont that offers a cost-effective way for anyone to participate in solar. Approximately 50 projects averaging 200 kilowatts (kW) each will enable consumers to “virtually purchase” up to 13 megawatts of solar power collectively — regardless of whether or not they own a home.

“This CSA program offers a tremendous opportunity for Vermonters to benefi t from solar energy, even if their rooftops don’t provide ideal conditions — or even if they don’t own a rooftop at all,” said Hitoshi Atari, KSI President.

The CSA is coordinated among three parties: Kendall Sustainable Infrastructure, an impact investment fi rm and principal sponsor; Kyocera, which is providing solar panels and additional capital; and SunCommon, Vermont’s largest residential solar installer.

Under the program, landowners can dedicate a portion of their property to generating clean energy — a new “cash crop,” helping farmers and Vermont landowners to stay on their land. Each acre of solar panels generates enough electricity to power about 30 homes.

“With the help of Vermont’s supportive solar policies, we can offer ‘community solar’ with no up-front purchase cost,” said SunCommon co-president Duane Peterson. “CSA participants simply sign up for the program at a monthly payment

that’s actually less than their former power bill.”

Participants enroll to virtually purchase power generated by solar arrays within their service territories. Solar power is fed into the grid, and participants purchase an amount of grid power equal to that generated by the arrays. The partnership expects to construct 50 CSAs, with nearly a dozen online or expected to be operational by year-end, and the remainder in 2016.

“It turns out that doing the right thing while saving money is a very popular offering,” Duane observed.

SOLAR SHARING: With Kyocera’s community solar share program in Vermont, even those who aren’t homeowners with ideal sunny rooftops can still enjoy the benefi ts of knowing their electricity comes from the clean, renewable energy of the sun.

Featured Solar Installation

Bacardi Group HQ Goes 100% Solar with KYOCERA

COVERED ROOF TERRACE WITH BENEFITS: “By installing Kyocera solar modules, the Emilio Bacardi Group headquarters not only gains a functional terrace with ample shade on its rooftop, but a strong competitive advantage,” said Hitoshi Atari, President of Kyocera Solar, Inc. The 99 Kyocera solar modules will provide 100% of the building’s electrical power needs. The steel structure is built to withstand hurricane-force winds of up to 145mph while allowing technicians easy access to the installation.

KYOCERA Supports Innovative Community Solar Array Program

Residents don’t need to own a hometo benefi t from solar power

K ICC’S DAVE ITALIANO FOUND THE SILVER LINING IN A TOUGH SITUATION THIS summer. “The sunsets across the Northwest were exaggerated by smoke from rampant and highly destructive forest fi res,” he said. “I took

advantage of the phenomenon while in Glacier National Park. In this case, I specifi cally remember telling my son I needed him to jump in front of this scene to make it a good photo.” Dave’s son, Zylus, may look familiar: he’s appeared on this page three times in his six years. Dave receives a $150 gift certifi cate redeemable for Kyocera merchandise for his photographic skill. Our employee judges on KyoSphere also chose four eye-popping photos for Honorable Mention:

• KPTI’s Yukari Croteau captured the light refl ecting on the walls of Antelope Canyon, Arizona’s beautiful slot canyons.

• KAI’s Meridith Marquis is so enthusiastic about Christmas that she even decorates her dog, Mars Rover, who looks dashing in a makeshift wreath of lights.

• KMX’s Oscar Gonzalez created a photographic time machine with two images taken eight years and eight days apart, showing three generations of his family as they grow and change.

• KAI’s Mariola Kurzawska hiked to the edge of the trail to photograph the Colorado River’s Horseshoe Bend near Page, Ariz., during a summer tour with relatives.

For upcoming contests, you’ll note a recurring Active Lifestyle theme. We can’t guarantee it, but photos submitted for this category might appear on Kyocera’s social media pages to showcase our ruggedized Kyocera phones. Other contest themes appear below. Good luck!

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A Great Leap Forward▲“Antelope Canyon,” by Yukari Croteau, KPTI, Costa Mesa (Shapes and Shadows)

UPCOMING CONTEST DETAILS:

Spring 2016 EditionSuggested Themes:

Active Lifestyle, Celebrations, My Masterpiece, or Springtime

Due Date: January 22

Summer 2016 EditionSuggested Themes:

Active Lifestyle, Selfi es, Vacation or Water You Thinking?

Due Date: April 22

“Fun with the Son,” by David Italiano,KICC, Vancouver, Wash. (Family; Shapes and Shadows)

▲ “8 Years and 8 Days,” by Oscar Gonzalez, KMX, Tijuana (Family)

◄“Festive Beagle,” by Meridith Marquis, KAI, San Diego (Family; Holidays)

◄“Horseshoe Bend,” by Mariola Kurzawska, KAI, San Diego (Shapes and Shadows)