Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Q1 FY ending March 2006 Earnings Presentation
18 slides from Oki Electric Industry's earnings presentation, Jul 28, 2005
Slide 1: Financial Results for the First Quarter of FY ending March 31, 2006
Financial Results for the First Quarter of FY ending March 31, 2006 July 28, 2005 Oki Electric Industry Co., Ltd. 1
Slide 2: Table of Contents
Table of Contents 1. Financial Results for the Q1 of FY ending Mar. 2006 1-1 Business Environments 1-2 Financial Result Overview 1-3 Profit and Loss 1-4 Segment Information 1-5 Balance Sheet 1-6 Cash Flows 2. First Half Projections for the FY ending Mar. 2006 2-1 Profit and Loss Projections 2-2 Proj
Slide 3: Business Environments
Business Environments 1. Because of the completion of new banknote related investments, financial institutions’ investments on ATM-related equipment stagnated since the latter half of previous fiscal year. Investments on security expand gradually, but move in high gear from the next fiscal year 2. T
Slide 4: Q1 Financial Result Overview
Q1 Financial Result Overview Net sales decreased by 5.7 billion yen on a year-on-year basis, particularly sales for financial institutions and semiconductors Operating income decreased by 1.8 billion yen along with the sales decline Both shareholders’ equity ratio and interest-bearing debt ratio imp
Slide 5: Q1 Profit and Loss
Q1 Profit and Loss Comparison of consolidated P/L (Billion yen) Q1 of FY Q1 of FY Operating loss was 3.9 billion yen, Variance Mar. 05 Mar. 06 decreased by 1.8 billion yen on a year- Net sales 142.0 136.3 (5.7) on-year basis, due to sales reduction (Cost of sales ratio) (75.4%) (76.8%) (-1.4 %) Cost
Slide 6: Q1 Segment Information: Segment Total
Q1 Segment Information: Segment Total While printer sales increased, sales in info-telecom systems and semiconductors decreased Due to sales reduction, both operating income and net income decreased Net sales Income (Billion yen) 142.0 136.3 Operating income Net income 6.1 7.3 Others (Billion yen) 2
Slide 7: Q1 Segment Information: Info-Telecom Systems
Q1 Segment Information: Info-Telecom Systems Telecom carriers’ active investments on optical and broadband IP networks increased sales for telecom carriers Net sales decreased on a year-on-year basis, due to slow investments on ATMs by financial institutions and slow IT investments by public sector
Slide 8: Q1 Segment Information: Semiconductors
Q1 Segment Information: Semiconductors Net sales in LCD drivers increased, due to the effect of the acquisition of Japan TI’s driver business Net sales in PHS baseband LSIs and sound generator LSIs decreased, affected by mobile terminal inventory adjustment in China Operating income decreased by 1.9
Slide 9: Q1 Segment Information: Printers
Q1 Segment Information: Printers Color NIP unit shipment drastically increased, which led increase in net sales under the severer price competition among printer vendors to gain shares Price drop and active investment on sales reduced operating income Net sales Operating income (Billion yen) 31.8 (B
Slide 10: Q1 Balance Sheet (1)
Q1 Balance Sheet (1) <Balance Sheet: Assets> Inventory increased by 22.1 billion yen on a year-on-year basis, because of the printer sales growth and the increase in inventory value in Yen in overseas subsidiaries caused by the depreciation of the Yen. (Billion yen) Variance with 609.6 608.0 595.4 J
Slide 11: Q1 Balance Sheet (2)
Q1 Balance Sheet (2) <Balance Sheet: Liabilities and Shareholders’ Equity> Balance of interest-bearing debt was 279.0 billion yen, decreased by 4.4 billion yen on a year-on-year basis Interest-bearing debt ratio reached 46.9%, improved by 1.7 points on a year-on-year basis, shareholders’ equity rati
Slide 12: Q1 Cash Flows
Q1 Cash Flows Increase in working capital, including notes and accounts receivable and inventory, worsened cash flows from operating activities by 29.1 billion yen on a year-on-year basis Accordingly, free cash flows worsened by 27.6 billion yen (Billion yen) Q1 of FY Q1 of FY Variance Notes Mar. 05
Slide 13: First Half Projections: Profit and Loss
First Half Projections: Profit and Loss Though net sales is unchanged, operating income decreases 4.0 billion yen from the previous projections announced on Apr. 27 While net sales slightly increases on a year-on-year basis, Oki expects an operating loss of 4.0 billion yen, affected by price drops,
Slide 14: First Half Projections: Segment Total
First Half Projections: Segment Total Net sales is 320.0 billion yen, unchanged from Apr. 27 announcement. Operating income decreases by 4.0 billion yen from previous projections, affected by decrease in sales for financial institutions and price drop in semiconductor segment On a year-on-year basis
Slide 15: First Half Projections: Info-Telecom Systems
First Half Projections: Info-Telecom Systems Sales in telecom carriers increases by 2.0 billion yen, while sales in financial institutions decreases by 6.0 billion yen, which leads decrease in both net sales and operating income from the previous projections announced on Apr. 27 On a year-on-year ba
Slide 16: First Half Projections: Semiconductors
First Half Projections: Semiconductors Net sales of 77.0 billion yen is unchanged from the previous projections on Apr. 27. Operating income decreases by 1.0 billion yen, due to price drop On a year-on-year basis, while there is sales increase factor caused by the driver LSI business acquisition, ne
Slide 17: First Half Projections: Printers
First Half Projections: Printers Sales in color NIP increases by 2.0 billion yen from the previous projections on Apr. 27. Operating income is 1.5 billion yen, unchanged from the previous projections, due to price down On a year-on-year basis, net sales increases by 6.8 billion yen due to large incr
Slide 18: Product Development for High Profitability
Product Development for High Profitability Create “strong products” which generate high profitability Info-telecom System Business Deliver ATM-BankIT to mega banks, regional banks and Shinkin banks (Oct. 2005) Expand line-up of SS9100 (Q3, Oct-Dec. 2005) Unveil products that realize triple-pla
Oki Electric Industry — Q1 FY ending March 2006 Earnings Presentation on 6ix