Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — FY2022 Earnings Presentation
16 slides from Oki Electric Industry's earnings presentation, May 10, 2023
Slide 1: Financial Results for the FY Ended March 31, 2023
OR Financial Results for the FY Ended March 31, 2023 May 10, 2023 Oki Electric Industry Co., Ltd. ‘© Copyright 2023 Oki Electric Industry Co., Ltd 1
Slide 2: Summary of FY2022 financial results
This is a summary of financial results for FY2022. Net sales of JPY369.1 billion, operating income of JPY2.4 billion, ordinary loss of JPY0.3 billion, and net loss of JPY2.8 billion. Net sales and operating income were slightly weaker than the previous forecast but were generally within the fore
Slide 3: Sales and operating income by segment
This shows sales and operating income by segment. Solution Systems business increased by JPY16.8 billion due to the inclusion of projects left over from the previous fiscal year and an increase in sales from the aircraft equipment business. Operating income, on the other hand, declined by JPY1.0
Slide 4: Operating income variance factors
From left to right in the chart are the volume change and the difference in model mix. While some projects from the previous year were captured, the increase in revenue was limited to JPY6.2 billion due to sluggish growth in DX projects and other projects, as well as increased costs for software d
Slide 5: Business overview of Solution Systems Business
Business overview of Solution Systems Business. Net sales increased in all business areas compared to the previous year. Recovery is making firm progress. On the other hand, operating income decreased by JPY1.0 billion from the previous year. Net sales in the DX domain were JPY40.4 billion. Al
Slide 6: Business overview of Components and Platforms business
Business overview of the Components and Platforms business. Net sales in the Mono-zukuri Platform business increased by JPY8.8 billion from the previous year, driven by the business for FA/semiconductor manufacturing equipment. On the other hand, overall sales in the Component business decreas
Slide 7: Balance sheet summary
Inventories increased approximately JPY18 billion from the beginning of the period. As a result, outstanding borrowings also increased by approximately JPY30 billion. However, as previously explained, the situation at the end of the period was as follows, inventories peaked in Q3 and declined by
Slide 8: Cash flow
Free cash flow was negative JPY20.7 billion. As a supply chain impact measure, inventory increased and working capital increased due to delays in shipments caused by securing parts and materials and by the shortage of parts and materials. With cash equivalents of JPY37.5 billion, the Company has
Slide 9: (Reference) Quarterly Results
LOK] = re (Reference) Quarterly Results (Billion yen) Net Sales FY2022/3 FY2023/3 1Q 2Q 3Q 4Q FY 1Q | 2Q 3Q 4Q FY Solution Systems 33.9] 35.0} 38.7] 55.0/ 162.6] 36.1) 384] 44.7) 60.2) 179.4 Components & | 459] 44.8| 47.8| 50.5| 189.0] 41.9] 461| 49.1| 521| 189.2 Platforms Others 0.1} O14; O14] O1f
Slide 10: FY2023 forecast
This is the forecast for FY2023, the current fiscal year. In the current fiscal year, the effects of supply chain measures implemented in the previous fiscal year are expected to be evident and production volume is expected to recover. By doing so, we plan to improve both sales and profits by ca
Slide 11: FY2023 operating income variable factors
This is a variable factor in operating income in FY2023. Here is a chart showing the plan I just described. As we have done in the past, we will continue to give priority to investments that are essential for growth. In addition, from this fiscal year, we have positioned human capital invest
Slide 12: (Reference) Investments and Cash Flows Forecasts
OR (Reference) Investments and Cash Flows Forecasts @ Wewill continue to make necessary investments for sustainable growth. Investments FY2023/3 . Variance Billion yen) Results Capital Expenditure* 18.7 +5.3 Depreciation* 11.3 +4.2 R&D 9.6 +3.4 *Scope: property, plant, and equipment, and intangible
Slide 13: Forecasts by new segment
OR Public Solutions Enterprise Solutions Billion yen) (Billion yen| Net sales Net sales — 957 C1 u 1129 a | | FY2023/3 FY2024/3 Results Forecasts FY2023/3 FY2024/3 Results Forecasts Operating income Operating income 115 3400 40 v4 - = . FY2023/3 FY2024/3 FY2023/3 FY2024/3 Results Forecasts Results F
Slide 14: (Reference) Revision of Business Segments
LOK <<< re (Reference) Revision of Business Segments Up to FY2022 Solution Systems FY2023 onwards @ Transition to a management structure focusing on market alignment and value chain optimization. Public Solutions Businesses providing safety, security, and convenience through communication infrastruc
Slide 15: (Reference) Major Products and Services
El ORL rc (Reference) Major Products and Services @ Public Solutions information) +Aircraft equipment check-in systems *Roads (ETC, VICS), air traffic control, disaster *Al edge computers, sensors, loT networks preparedness, fire prevention *PBXs, business phones, contact centers +Business systems f
Slide 16: Notice
OR 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