Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — 9M FY2023/3 Earnings Presentation
17 slides from Oki Electric Industry's earnings presentation, Feb 9, 2023
Slide 1: Financial Results for First Nine Months of the FY Ending March 31, 2023
Financial Results for First Nine Months of the FY Ending March 31, 2023 February 9, 2023 Oki Electric Industry Co., Ltd. © Copyright 2023 Oki Electric Industry Co., Ltd. 1
Slide 2: Summary of Financial Results
Summary of Financial Results Net sales increased YOY, despite the impact of lower production due to difficulties in procuring semiconductors and other components. Operating income was about the same as in the previous year in real terms excluding one-time factors. Due to the impact of foreign
Slide 3: Segment Information (Net Sales/ Operating Income)
Segment Information (Net Sales/ Operating Income) (Billion yen) 9 months 9 months Net Sales FY2023/3 FY2022/3 Variance (Results) (Results) Solution Systems 119.2 107.6 +11.6 Components & Platforms 137.1 138.5 (1.4) Others 0.4 0.3 +0.1 Total 256.6 246.4 +10.2 9 months 9 months Operating Income FY2023
Slide 4: Reasons for Changes in Operating Income/Loss
Reasons for Changes in Operating Income/Loss Supply chain impact continued in 3Q. Progress was made in capturing projects that were shifted from the previous year due to difficulties in procuring materials, and in optimizing prices. Progress has also been made in adapting to replacement parts thro
Slide 5: Overview: Solution Systems Business
Overview: Solution Systems Business All business areas increased YOY. Operating income decreased YOY, due in part to the cost of failed software development projects in Enterprise Solutions and the negative impact of foreign exchange. DX domain sales 3Q Total: ¥23.5 B (Same period last year: ¥
Slide 6: Overview: Components & Platforms Business
Overview: Components & Platforms Business Net sales of Mono-zukuri Platforms for FA/semiconductor manufacturing equipment continued to be strong. Net sales of Components decreased due to the impact of semiconductor shortages on production in the Automation Systems business. Net sales in the Periph
Slide 7: Balance Sheets
Balance Sheets Borrowings increased due to higher inventory caused by the supply chain impact. Shareholders’ equity ratio decreased by 4.7 points. Dec. 2022 Mar. 2022 Variance (Billion yen) Current assets 222.5 211.8 +10.7 Fixed assets 159.1 157.3 +1.8 Assets 381.6 369.2 +12.4 Current liabilitie
Slide 8: Cash Flows
Cash Flows Operating cash flow worsened YOY due to higher inventory caused by the supply chain impact. 9 months 9 months FY2023/3 FY2022/3 Variance (Billion yen) (Results) (Results) Ⅰ Cash flows from operating activities (14.4) (0.3) (14.1) Ⅱ Cash flows from investing activities (13.6) (15.1) +1.5
Slide 9: Revision of Financial Forecasts
Revision of Financial Forecasts In light of the latest earnings trends, we have revised downward the earnings forecast announced on May 11, 2022. Exchange rate assumptions The dividend forecast was also revised to ¥20 per share for 4Q Previous USD ¥135 ¥115 the year. (Initial announcement: ¥30)
Slide 10: Executive Summary
Executive Summary Business Overview Market OKI's investments in key business areas remained relatively strong. (Digitization, Automation Systems business, EMS, etc.) Procurement Although there were modest improvements in some areas (such as marketable goods), the overall picture remained uncha
Slide 11: Financial Forecasts (Net Sales)
Financial Forecasts Net sals (27.0) (Billion yen) Solution Systems 2.0 0.0 (6.0) 24.4 Impact of 210.0 Price optimization currency Decrease in volume exchange （Shift due to supply chain impact) 183.0 Increase in volume 162.6 Aircraft equipment 6.0 Shift from previous year 12.0 others Results Revised
Slide 12: Financial Forecasts (Operating Income)
Financial Forecasts Operating income Operating income: Major changes from the previous forecast Net sales will be delayed into the next fiscal year due to difficulties in procuring components for key semiconductors. Failure costs incurred on new software development projects. Higher costs due
Slide 13: (Reference) Working Capital - Trade Receivables/Inventory
(Reference) Working Capital - Trade Receivables/Inventory Despite an increase in working capital in FY2023/3, we expect improvements in the 1H of FY2024/3. (Billion yen) Solution Systems Business 棚卸 Trade Inventory 売上債権 Receivables 85.0 74.0 70.2 68.9 61.5 47.6 65.0 43.8 53.6 40.1 Projected sales
Slide 14: (Reference) Quarterly Results
(Reference)Quarterly Results （Billion yen） Net Sales FY2022/3 FY2023/3 1Q 2Q 3Q 4Q FY １Q 2Q 3Q Solution Systems 33.9 35.0 38.7 55.0 162.6 36.1 38.4 44.7 Components & 45.9 44.8 47.8 50.5 189.0 41.9 46.1 49.1 Platforms Others 0.1 0.1 0.1 0.1 0.4 0.1 0.1 0.2 Total 79.9 79.9 86.6 105.7 352.1 78.1 84.7 9
Slide 15: (Reference) Major Products and Services
(Reference) Major Products and Services Solution Systems Components & Platforms Public Solutions Components • Roads (ETC, VICS), air traffic control, • ATMs, cash handling equipment disaster preparedness, fire prevention • Bank branch terminals, ticket reservations • Business systems for central
Slide 16: 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 17: © Copyright 2023 Oki Electric Industry Co., Ltd.
© Copyright 2023 Oki Electric Industry Co., Ltd. 17
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