Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Q1 FY2007 Earnings Presentation
19 slides from Oki Electric Industry's earnings presentation, Jul 27, 2007
Slide 1: Financial Results for the Q1 of FY ending March 31, 2008
Financial Results for the Q1 of FY ending March 31, 2008 July 27, 2007 Oki Electric Industry Co., Ltd. © Copyright 2007 Oki Electric Industry Co., Ltd. 1
Slide 2: Table of Contents
Table of Contents I. Financial Results for the Q1, FY ending Mar. 08 1. Financial results outline 2. Profit and loss 3. Segment information 4. Balance sheets 5. Cash flows (Reference) Depreciation method II. Status of “Business Structure Revamp” Initiative * The projections and plans on this materia
Slide 3: Q1 Financial Results Outline
Q1 Financial Results Outline Financial performance resulted as planned. Projections of operating environment and progress of various initiatives also proceeded as planned YoY comparison ¾ Net sales increased by 13.1 B yen, due to impact of currency exchange and increase in sales for Postal Office ¾
Slide 4: Q1 Profit and Loss
Q1 Profit and Loss (Billion yen) Q1 Q1 Cost of sales ratio improved by 0.7 FY Mar. 07 FY Mar. 08 points YoY Net sales 130.4 143.5 (78.4%) Decrease in SG&A due to reduction (Cost of sales ratio) (77.7%) of sales promotion costs Cost of sales 102.2 111.5 SG&A 37.2 36.7 Other income/expense increased d
Slide 5: Operating Income Changing Factors
Operating Income Changing Factors Improved by 4.3 B yen YoY Reduction of procurement costs and the effect of VE covered price decline Increase in quantity and impact of currency exchanges Fixed-costs remained the same level as the previous year Though depreciation costs increased due to purchase of
Slide 6: Segment Information: Info-telecom Systems
Segment Information: Info-telecom Systems Net sales (Billion yen) Net sales: Increased by 11.6 B yen 62.3 50.7 5.9 Others Financial market: Increased by 12.8 B yen 6.0 13.5 Information - Sales for Postal Office increased systems - Expanding ATM sales for China 12.3 13.6 Telecom Telecom: Decreased by
Slide 7: Segment Information: Semiconductors
Segment Information: Semiconductors Net sales (Billion yen) Net sales: Decreased by 2.2 B yen 33.2 31.0 Foundry, Others Logic: Decreased by 3.9 B yen 5.4 Optical 0.6 5.2 components Decrease in sales for small driver LSI and 0.4 8.1 PHS baseband LSI in China 10.2 System memories System memory: Increa
Slide 8: Segment Information: Printers
Segment Information: Printers Net sales (Billion yen) Net sales: Increased by 2.7 B yen Color NIP: Increased by 1.7 B yen 41.0 38.3 • Currency exchange impact: 1.6 B yen Mono NIP, Actual sales remains in the same level YoY 17.7 18.7 SIDM, others • While sales in Japan increased, overseas sales decli
Slide 9: Q1 Balance Sheets: Assets
Q1 Balance Sheets: Assets Property, plant and equipment increased by 11.4 B yen due to the addition of new consolidated subsidiaries Actual inventories decrease due to sales growth excluding the impact of currency exchange (5.7 B yen) (Billion yen) Variance with 618.9 617.7 628.4 Jun. 30, 2006 598.4
Slide 10: Q1 Balance Sheets: Liabilities and shareholders' equity
Q1 Balance Sheets: Liabilities and shareholders’ equity 18.0 B yen of “convertible-bond-type-bonds with stock acquisition rights” were converted to stocks, increasing shareholders’ equity and decreased interest-bearing debts While shareholder’ equity increased from above reason, it decreased in tota
Slide 11: Q1 Cash Flows
Q1 Cash Flows Free cash flows improved by 11.1 B yen due to reduction of income loss and improvement of working capital Q1, FY Q1, FY (Billion yen) Mar.07 Mar.08 Variance Notes I. Cash flows from operating activities (6.6) 5.5 12.1 Income before income taxes (10.6) (5.7) 4.9 <Working capital> Mar.07
Slide 12: (Reference) Depreciation Method
(Reference) Depreciation Method Depreciation method for the FY ending Mar. 08 ¾ Though the method for depreciation has been revised under the 2007 Tax Reform, OKI and part of its group companies will use the conventional method as tax reduction cannot be expected with the new calculation. Other OKI
Slide 13: (Reference) Business Environment Outlook
(Reference) Business Environment Outlook Info-telecom systems Financial: Expanding ATM sales in China Telecom: Carriers’ business scale of NGN commercial services is uncertain, and capital investment plans are fluctuating at this point Domestic and overseas sales for key telephone system is stea
Slide 14: Table of Contents
Table of Contents I. Financial results for the Q1, FY ending Mar. 08 1. Financial results outline 2. Profit and loss 3. Segment information 4. Balance sheets 5. Cash flows (Reference) Depreciation method II. Status of “Business Structure Revamp” Initiative © Copyright 2007 Oki Electric Industry Co.,
Slide 15: Q1 Status of Business Structure Revamp Initiatives
Q1 Status of Business Structure Revamp Initiatives • Urgent measures are being implemented as planned • Resource shift has been completed by shifting 700 employees to focusing businesses Basic directions for mid- and long-term measures are being implemented, while partial revisions were made accordi
Slide 16: Status of Urgent Measures
Status of Urgent Measures Urgent Measures Target Q1 Status Evaluated core/non-core biz. Consolidate/ reduce Reviewing measures for enhance- 10% number of biz units ment, spinning-out, selling-out, withdrawal, independent, etc. Accelerate biz To focusing biz: selection and Completed concentration Shi
Slide 17: Status of Mid- and Long-Measures: management concentration
Status of Mid- and Long-Measures 1 Discuss and implement based on basic directions of business revamp initiatives Conclude advisory agreement with external firms for biz groups’ strategies Mid- and Long-Measures Target (by H1) Items for consideration - Complete organizing businesses to be withdrawn
Slide 18: Status of Mid- and Long-Measures: strong products
Status of Mid- and Long-Measures 2 Discuss and implement based on basic directions of business revamp initiatives Conclude advisory agreement with external firms for biz groups’ strategies Mid- and Long-Measures Target Items for consideration Create strong - Complete clarifying Ubiquitous Services P
Slide 19: Glossary
Glossary P2 FY Fiscal Year P3 YoY Year-on-year P4 SG&A Selling, General and Administrative expense P5 VE Value Engineering P6 ATM Automated Teller Machine P7 LSI Large Scale Integration PHS Personal Handy-phone System P2ROM Production Programmed Read Only Memory P8 NIP Non-Impact Printer MFP Multi-f
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