Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — FY2022/3 Earnings Presentation
26 slides from Oki Electric Industry's earnings presentation, May 11, 2022
Slide 1: Financial Results for the FY Ended March 31, 2022
Financial Results for the FY Ended March 31, 2022 May 11, 2022 Oki Electric Industry Co., Ltd. © Copyright 2022 Oki Electric Industry Co. Ltd, 1
Slide 2: Contents
LOK = ee Contents 1. Financial Results for FY2022/3 2. Financial Forecasts for FY2023/3 3. Management Policy for FY2023/3
Slide 3: 1. Financial Results for FY2022/3
OR 1. Financial Results for FY2022/3 © Copyright 2022 Oki Electric Industry Co. Ltd,
Slide 4: Summary of the financial results
Summary of the financial results. The Company recorded sales of JPY352.1 billion, operating income of JPY5.9 billion, ordinary income of JPY7.7 billion, and net income of JPY2.1 billion. At the time of the previous announcement of the third quarter results, we revised our financial results to in
Slide 5: Exchange rate impact
depreciation of JPY6.7 against the previous fiscal year. The euro was JPY130.6, also JPY7.1 weaker than the previous fiscal year. 4
Slide 6: Net sales and operating income by segment
Net sales and operating income by segment. Sales of Solution Systems decreased by JPY28.2 billion from the previous fiscal year to JPY162.6 billion. The main breakdown of the YoY net sales decline was a negative JPY13 billion due to the impact of parts procurement and a negative JPY9 billion due
Slide 7: Changes in operating income
The changes in operating income. The impact on profit due to difficulties in procuring parts and materials, which had the largest impact, was JPY8.3 billion. The breakdown is JPY4.4 billion for Solution Systems and JPY3.9 billion for Components & Platforms. This is the effect on profit of the ap
Slide 8: Fixed costs and operating income changes
the medium-term business plan, resulted in an increase of approximately JPY6.4 billion. Although there was an increase in other expenses due to investments for growth, the total fixed costs decreased by JPY7.6 billion as a result of cost reduction measures such as curbing non-essential and non-urgen
Slide 9: Business overview of Solution Systems business
Business overview of Solution Systems business. The deteriorating impact of procurement of parts and materials, combined with the accompanying investment restraint, unfortunately resulted in a greater- than-expected net sales decline. The DX domain, which is being promoted as a growth strategy
Slide 10: Business overview of the Components & Platforms business
Business overview of the Components & Platforms business. In the Components & Platforms business, production was affected by a shortage of parts and materials in the fourth quarter, which was roughly within expectations, but the impact of lower production and a strategic narrowing of sales model
Slide 11: Balance sheet overview
Basically, there is no significant change in the composition of each asset and liability. Total assets decreased JPY2.3 billion from the end of the previous period to JPY369.2 billion. Shareholders' equity decreased JPY4 billion to JPY107.4 billion. As a result, the shareholders' equity rati
Slide 12: Cash flows
Free cash flow decreased to negative JPY11.7 billion. The increase in inventory due to shipping delays caused by securing parts and materials and shortage of parts and materials as supply chain impact countermeasures led to an increase in working capital. Cash equivalents amounted to JPY33.4 bil
Slide 13: (Reference) Quarterly Results
(Reference) Quarterly Results (Billion yen) FY2021/3 FY2022/3 Net Sales 1a | 2a | 3a | 4a | Fy | 1a | 2a | 3a | 4a | FY Solution Systems | 39.6] 43.1] 44.6] 63.5| 190.8] 33.9] 35.0] 38.7] 55.0] 162.6 Components & Platonne 41.6] 48.9] 48.6] 62.4] 201.5] 45.9| 44.8] 47.8] 50.5] 189.0 Others 0.2 0.1 0.
Slide 14: 2. Financial Forecasts for FY2023/3
OR 2. Financial Forecasts for FY2023/3 © Copyright 2022 Oki Electric Industry Co. Ltd, 1 12
Slide 15: Forecast for FY2023/3
I will explain our forecast for FY2023/3. Unfortunately, supply chain impacts are expected to continue for the foreseeable future. Therefore, in formulating the plan for the current fiscal year, we have made certain assumptions that the plan will incorporate trends from the second half of the pr
Slide 16: (Reference) Reasons for Changes in Operating Income
OBL orcas (Reference) Reasons for Changes in Operating Income @ Plan YOY profit increase by offsetting the negative impact of supply chain issues and one-time factor with increases in volume, including shift from previous year, and improvement in fixed costs. (Billion yen) 16. rare Supply chai Chang
Slide 17: (Reference) Business Overview
On (Reference) Business Overview Solution Systems Business Net sales 1 (Public Solutions) (Enterprise Solutions) (OX Platforms) (Construction and Maintenance Servic FY22/3 FY23/3 FY22/3 FY23/3 Results Forecast Results Forecast Operating income (Billion yen) iT 62.6 9.5 14.0 — | Components & Platform
Slide 18: (Reference) Investments and Cash Flows Forecasts
eee (Reference) Investments and Cash Flows Forecasts = Continue to make investments essential for sustainable growth. Investments tation yen) fps Variance Capital Expenditure* 22.3 42.7 Depreciation* 11.5 +2.5 R&D 11.5 +0.5 *Scope: property, plant, and equipment, and intangible assets. Cash Flows FY
Slide 19: 3. Management Policy for FY2023/3
OR 3. Management Policy for FY2023/3 17
Slide 20: Review of the medium-term business plan
I am Mori, President of the Company. I will explain our future management policy. I would like to review the current medium-term business plan. We believe that structural reforms are progressing almost as planned. The first is the restructuring of the business portfolio. In this area, we are m
Slide 21: Impact of COVID-19 and parts procurement on plan
the impact of the COVID-19 pandemic and parts procurement. OKI's ability to respond to changes in the business environment has been a bit lacking, and I understand that this makes it difficult to achieve the goals of this medium-term business plan. 18
Slide 22: Future management policy
In light of this situation, we have set forth our future management policy. We regret to inform you that we have decided to drop the achievement of the goals of the medium-term business plan 2022 and will focus on the crisis response as a single-year plan for the current year. In this sense, our
Slide 23: Goals and milestones for next plan
strategies we have presented up to now have been somewhat unclear. I believe that by including very clear goals and milestones in the plan, we will gain the understanding of our stakeholders and raise awareness within our company of the need to achieve our goals. It's been about one month since my
Slide 24: (Reference) Major Products and Services
(Reference) Major Products and Services Solution Systems ™ Public Solutions + Roads (ETC, VICS), air traffic control, disaster preparedness, fire prevention + Business systems for central government offices, government statistics systems + Defense systems (underwater acoustics, information) + Infras
Slide 25: 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 26: Open up your dreams
ORB oer ertcans Open up your dreams © Copyright 2022 Oki Electric Industry Co. Ltd, 22
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