Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — FY2017 Earnings Presentation
28 slides from Oki Electric Industry's earnings presentation, May 8, 2018
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2018
Financial Results for the Fiscal Year Ended March 31, 2018 May 8, 2018 Oki Electric Industry Co., Ltd. © Copyright 2018 Oki Electric Industry Co., Ltd. 1
Slide 2: Contents
Contents I. Financial Results for the Fiscal Year Ended March 31, 2018 1. Review of Business Performance 2. Summary of Financial Results 3. Segment Information (Net Sales) 4. Segment Information (Operating Income) 5. Reasons for Changes in Operating Income 6. Balance Sheets 7. Cash Flows II. Project
Slide 3: Review of Business Performance
Review of Business Performance Achievements - Started IoT-based businesses in the social infrastructure domain - Expanded full outsourcing service for ATMs in the domestic market - Implemented structural reforms and reinforced underlying profitability in the Printers business - Strengthened its fo
Slide 4: Summary of Financial Results
Summary of Financial Results Net sales were down from the previous fiscal year and below initial projections. Operating income increased year on year but fell short of our projection. Ordinary income improved year on year as the foreign exchange loss (within non- operating expenses) recorded in the
Slide 5: Segment Information (Net Sales)
Segment Information (Net Sales) ICT: Sales to some government agencies were healthy, although sales of network- related projects were delayed to the next fiscal year. Mechatronics systems: Overseas sales of ATMs were low. Printers: Sales were roughly as expected, although performance was affected by
Slide 6: Segment Information (Operating Income)
Segment Information (Operating Income) ICT: An improvement in the product mix and cost reductions halted the impact of sales decline. Mechatronics systems: The operating loss was worse than projection due to a lower sales volume. However, the loss improved year on year due to the absence of one-off
Slide 7: Reasons for Changes in Operating Income
Reasons for Changes in Operating Income Operating income improved due to the absence of one-off losses and the implementation of structural reforms. Changes in volume and product mix (Billion yen) (7.5) Changes in Impact of fixed costs, etc. +11.0 currency exchange +2.0 7.7 (2.5) ±0.0 +2.5 Changes R
Slide 8: Balance Sheets
Balance Sheets Total assets increased due to the consolidation of OKI Electric Cable. The shareholders’ equity and D/E ratios remained essentially unchanged. (Billion yen) Mar. 2018 Mar. 2017 Variance Current assets 230.4 231.5 (1.1) Fixed assets 141.4 129.2 +12.2 Assets 371.8 360.7 +11.1 Current li
Slide 9: Cash Flows
Cash Flows Free cash flows amounted to a net inflow of 5.1 B yen. Cash and cash equivalents decreased due to such factors as a reduction in interest-bearing debt. FY end. FY end. Variance (Billion yen) Mar. 2018 Mar. 2017 I Cash flows from operating activities 15.6 42.0 (26.4) II Cash flows from inv
Slide 10: I. Financial Results for the Fiscal Year Ended March 31, 2018 II. Projections
I. Financial Results for the Fiscal Year Ended March 31, 2018 1. Review of Business Performance 2. Summary of Financial Results 3. Segment Information (Net Sales) 4. Segment Information (Operating Income) 5. Reasons for Changes in Operating Income 6. Balance Sheets 7. Cash Flows II. Projections for
Slide 11: Get back on a sustainable growth path
Policies for the Fiscal Year Ending March 31, 2019 Get back on a sustainable growth path ICT: Expand performance in the co-creation business leveraging IoT Mechatronics systems: Revise strategy and promptly return to break-even Printers: Increase new sales in the industry printing market EMS
Slide 12: Profit and Loss Projections
Profit and Loss Projections OKI expects net sales, operating income, and ordinary income to increase year on year. Annual dividend plan: ¥50 per share (year-end) Exchange rate assumptions: ¥110/USD, ¥130/EUR FY end. Mar. 2019 FY end. Mar. 2018 (Plan) (Results) (Billion yen) Full year 1st half Full y
Slide 13: Segment Information
Segment Information ICT: Increase sales for social infrastructure and to a government agency Mechatronics systems: Implement structural reforms, mainly in overseas business Printers: Cultivate the industry printing market and aim to improve the sales mix EMS: Maintain strong performance in existing
Slide 14: Reasons for Changes in Operating Income
Reasons for Changes in Operating Income Operating income is expected to increase due to rise in sales volume and the product mix improvement while increasing investments. (Billion yen) Changes in fixed costs, etc. Changes +1.5 in price (3.5) Impact of (1.0) +1.5 currency Reduction in exchange ＋7.5 p
Slide 15: Free Cash Flow Projections
Free Cash Flow Projections Create stable free cash flows while continuing to invest in growth. FY end FY end Mar. 2019 Mar. 2018 Variance (Billion yen) (Plan) (Results) I Cash flows from operating activities 19.0 15.6 +3.4 II Cash flows from investing activities (13.0) (10.5) (2.5) Free cash flows (
Slide 16: Capital Expenditure and R&D Expense Projections
Capital Expenditure and R&D Expense Projections Property, Plant & Equipment (Billion yen) R&D Expenses [Capital Expenditure] Others Others 12.0 EMS 10.0 1.0 8.5 Printers Printers 2.0 7.0 4.0 2.1 2.0 0.9 Mechatronics 2.0 2.0 Mechatronics 1.6 3.0 1.5 Systems 2.0 Systems 1.1 2.0 ICT 4.0 1.9 2.0 2.4 ICT
Slide 17: Reference
Reference © Copyright 2018 Oki Electric Industry Co., Ltd. 17
Slide 18: Segment Information (Full-year Net Sales and Operating Income)
Segment Information (Full-year Net Sales and Operating Income） Net Sales Operating Income © Copyright 2018 Oki Electric Industry Co., Ltd. 18
Slide 19: Quarterly Transition of Net Sales and Operating Income
Quarterly Transition of Net Sales and Operating Income © Copyright 2018 Oki Electric Industry Co., Ltd. 19
Slide 20: Quarterly Transition of Net Sales and Operating Income (ICT)
Quarterly Transition of Net Sales and Operating Income (ICT) © Copyright 2018 Oki Electric Industry Co., Ltd. 20
Slide 21: Quarterly Transition of Net Sales and Operating Income (Mechatronics Systems)
Quarterly Transition of Net Sales and Operating Income (Mechatronics Systems) © Copyright 2018 Oki Electric Industry Co., Ltd. 21
Slide 22: Quarterly Transition of Net Sales and Operating Income (Printers)
Quarterly Transition of Net Sales and Operating Income (Printers) © Copyright 2018 Oki Electric Industry Co., Ltd. 22
Slide 23: Quarterly Transition of Net Sales and Operating Income (EMS)
Quarterly Transition of Net Sales and Operating Income (EMS) © Copyright 2018 Oki Electric Industry Co., Ltd. 23
Slide 24: Sales by Region
Sales by Region © Copyright 2018 Oki Electric Industry Co., Ltd. 24
Slide 25: Quarterly Transition of Profit and Loss
Quarterly Transition of Profit and Loss FY end. Mar. 31, 2017 FY end. Mar. 31, 2018 FY18 Full Results 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q year (Billion yen) (Plan) Net sales 93.2 106.1 105.6 146.7 90.4 103.6 106.0 138.0 450.0 Operating 0.7 (1.3) 1.0 2.1 (3.9) (0.2) 1.3 10.5 14.0 income/loss Non- operating (7.1)
Slide 26: Financial Highlights
Financial Highlights FY end. Mar. 31, 2017 FY end. Mar. 31, 2018 Results （Billion yen） 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total assets 387.1 371.9 379.6 360.7 344.2 348.0 357.6 371.8 Net assets 99.2 93.1 92.5 97.2 90.9 90.8 92.0 102.1 Interest-bearing debt 118.7 107.8 109.7 87.0 84.4 81.1 82.7 81.9 Shareholder
Slide 27: Notice
Notice • The projections and plans in this material are based on information currently available to OKI as of the date of publication and certain assumptions judged as rational, therefore actual results are subject to change depending upon the changes of business environments and other conditions. •
Slide 28: © Copyright 2018 Oki Electric Industry Co., Ltd.
© Copyright 2018 Oki Electric Industry Co., Ltd. 28