Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — FY2024 Earnings Presentation
24 slides from Oki Electric Industry's earnings presentation, May 8, 2025
Slide 1: Financial Results for FY2024
Financial Results for FY2024 May 8, 2025 Oki Electric Industry Co., Ltd. © Copyright 2025 Oki Electric Industry Co., Ltd. 1
Slide 2: Agenda
Agenda FY2024 Results & FY2025 Forecasts Business Overview by Segment Progress of Medium-Term Business Plan 2025 © Copyright 2025 Oki Electric Industry Co., Ltd. 2/14 2
Slide 3: Executive Summary
Executive Summary Overview [FY2024 Results] Net sales increased for three consecutive fiscal years, recovering to 450 billion yen level for the first time in five fiscal years. Operating income was 18.6 billion yen, profit attributable to owners of parent was 12.5 billion yen, and ROE was 8.7%. Equi
Slide 4: Summary of Financial Results
Summary of Financial Results (Billion Yen) FY2022 FY2023 FY2024 YoY Feb 6, 2025 Change to Forecasts Results Results Results Variance Ratio Forecasts Variance Ratio Net Sales 369.1 421.9 452.5 +30.6 +7% 453.0 (0.5) (0%) Operating Income 2.4 18.7 18.6 (0.1) (1%) 16.0 +2.6 +16% Operating Income Ratio 0
Slide 5: Reasons for Changes in Operating Income/Loss
Reasons for Changes in Operating Income/Loss Excluding one-off factors, substantial business profit increased significantly (FY23: 14.6 billion yen FY24: 22.5 billion yen) On a substantial basis, operating income ratio around 5% was achieved even after increases in fixed costs such as personne
Slide 6: Summary of Financial Forecasts
Summary of Financial Forecasts (Billion Yen) FY2024 FY2025 YoY Results Forecasts Variance Ratio Net Sales 452.5 450.0 (2.5) (1%) Operating Income 18.6 19.0 +0.4 +2% Operating Income Ratio 4.1% 4.2% +0.1% Ordinary Profit 16.8 17.0 +0.2 +1% Profit attributable to 12.5 14.0 +1.5 +12% owners of parent R
Slide 7: Agenda
Agenda FY2024 Results & FY2025 Forecasts Business Overview by Segment Progress of Medium-Term Business Plan 2025 © Copyright 2025 Oki Electric Industry Co., Ltd. 7/14 Next, I would like to briefly touch on the overviews of the four segments. 7
Slide 8: By Segment: Public Solutions
By Segment: Public Solutions FY2024: Both Social Infrastructure Solutions and TOKKI Systems saw growth (1.4x increase in sales, 2x operating income ratio) FY2025: The market environment remains robust. We aim for continued stable earnings and further expansion. (Billion Yen) [Social Infrastructu
Slide 9: By Segment: Enterprise Solutions
By Segment: Enterprise Solutions FY2024: Thanks to large-scale projects such as new JPY notes from the previous year, both sales and profits remained （単位︓億円） at high levels, and Services Business was also steady FY2025: Although the demands stated above will subside, we aim to stabilize both sca
Slide 10: By Segment: Component Products
By Segment: Component Products FY2024: Operating income improved YoY through profit-focused management FY2025: Aiming for stable medium- to long-term profitability by leveraging the participation of ETRIA Corporation in printer development and production functions (Billion Yen) Integration of
Slide 11: By Segment: EMS
By Segment: EMS FY2024: Due to the prolonged recession in Semiconductor and FA/Robotics market, sales and operating income both declined for the second consecutive year FY2025: Focused on restoring profitability and re-examining strategies for the next Medium-Term Business Plan (Billion Yen) A
Slide 12: Agenda
Agenda FY2024 Results & FY2025 Forecasts Business Overview by Segment Progress of Medium-Term Business Plan 2025 © Copyright 2025 Oki Electric Industry Co., Ltd. 12/14 Finally, I would like to explain the progress of our Medium-Term Business Plan. 12
Slide 13: Management Targets of Medium-Term Business Plan
Management Targets of Medium-Term Business Plan Sales and Profit: Steadily recovering to FY2019 level, progressing toward the targets ROE: Exceeded the 8% target, progressing toward long-term target of 10% Interest-bearing debt & Equity: Achieved the target ahead of schedule, and Financial Fou
Slide 14: Progress of Medium-Term Business Plan
Progress of Medium-Term Business Plan Growth • Steady progress as a Growth Business, supported by favorable Public Solutions Businesses conditions in defense sector on top • Focus on restoring profitability in FY25, with a strategic review in EMS the next Medium-Term Business Plan Stabilizing Enterp
Slide 15: (Reference) FY2024 Results by Segment
(Reference) FY2024 Results by Segment (Billion Yen) FY2023 FY2024 YoY Feb 6, 2025 Change to Forecasts Results Results Variance Ratio Forecasts Variance Ratio Public Net Sales 94.0 130.5 +36.5 +39% 132.0 (1.5) (1%) Solutions Operating Income 4.4 14.1 +9.7 +220% 11.0 +3.1 +28% Operating Income Ratio 4
Slide 16: (Reference) FY2025 Forecasts by Segment
(Reference) FY2025 Forecasts by Segment (Billion Yen) FY2024 FY2025 YoY Results Forecasts Variance Ratio Public Net Sales 130.5 141.5 +11.0 +8% Solutions Operating Income 14.1 13.5 (0.6) (4%) Operating Income Ratio 10.8% 9.5% (1.3%) Enterprise Net Sales 179.8 157.5 (22.3) (12%) Solutions Operating I
Slide 17: (Reference) Enterprise Solutions Sub-Segment in Old Format
(Reference) Enterprise Solutions Sub-Segment in Old Format (Billion Yen) A) Old Format B) New Format (Billion Yen) FY2022 FY2023 FY2024 (Billion Yen) FY2022 FY2023 FY2024 Results Results Results Results Results Results Sales: Hardware/Solution 63.7 125.8 124.3 Sales: Hardware/Solution 47.1 106.1 102
Slide 18: (Reference) FY2024 Balance Sheet
(Reference) FY2024 Balance Sheet (Billion Yen) End of End of Variance Mar 2024 Mar 2025 Current Assets 239.7 231.9 (7.8) Fixed Assets 183.7 179.1 (4.6) Inventory Conversion Period (Days) Assets 423.4 411.0 (12.4) 110 108 104 102 105 99 96 Current Liabilities 188.4 167.0 (21.4) 82 70 Fixed Liabilitie
Slide 19: (Reference) FY2024 Cash Flow
(Reference) FY2024 Cash Flow (Billion Yen) FY2023 FY2024 YoY Results Results Variance ⅠCash flows from operating activities 24.7 39.3 +14.6 ⅡCash flows from investing activities (14.3) (19.6) (5.3) Free cash flows (Ⅰ+Ⅱ) 10.4 19.7 +9.3 Ⅲ Cash flows from financing activities (15.7) (17.9) (2.2) Purcha
Slide 20: (Reference) FY2025 Investments & FCF
(Reference) FY2025 Investments & FCF Investments FY2024 FY2025 YoY (Billion Yen) Results Forecasts Variance Capital Expenditure 18.5 22.0 +3.5 Depreciation 13.2 16.0 +2.8 R&D 11.0 10.0 (1.0) Cash Flows FY2024 FY2025 YoY (Billion Yen) Results Forecasts Variance ⅠCash flows from operating activities 3
Slide 21: (Reference) Quarterly Results by Segment
(Reference) Quarterly Results by Segment (Billion Yen) FY2023 FY2024 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Public Net Sales 19.3 20.0 24.5 30.1 94.0 19.1 22.2 29.0 60.2 130.5 Solutions Operating Income (0.1) (0.7) 1.4 3.9 4.4 (1.3) 0.7 3.2 11.4 14.1 Enterprise Net Sales 27.4 36.5 51.5 64.7 180.1 45.2
Slide 22: (Reference) Cash Conversion Cycle History
(Reference) Cash Conversion Cycle History (Days) 86 78 66 73 73 69 81 77 73 76 74 64 93 66 80 84 66 85 99 107 110102 108112 104108 101 102 105102 96 89 82 82 81 70 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Inventory Conversion Period Receivable Collection Perio
Slide 23: (Reference) Major Products and Services
(Reference) Major Products and Services • Roads (ETC, VICS), air traffic control, disaster prevention, firefighting • Business systems for central government offices, government statistics systems Public • Defense systems (underwater acoustics, information) Solutions • Aviation equipment • Infrastru
Slide 24: 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. I