Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Q3 FY2022 Earnings Presentation
19 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
OR 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: Cumulative 3Q net sales, operating loss and net loss
In the cumulative 3Q, net sales were JPY256.6 billion, operating loss was JPY4.8 billion, and net loss was JPY11.6 billion. Net sales increased approximately JPY10 billion from the previous year, partly due to the effect of foreign exchange rates, but operating income was down by JPY4.7 billion
Slide 3: Sales and operating income by segment
This shows sales and operating income by segment. As for sales, Solution system sales increased JPY11.6 billion YOY to JPY119.2 billion. Sales of the Components and platforms decreased by JPY1.4 billion YOY to JPY137.1 billion. Although overall sales of Components and platforms declined due to t
Slide 4: Operating income elevator chart as of 3Q
The elevator chart for operating income as of 3Q. The impact of the supply chain is a decrease of JPY11.6 billion at this point. The main breakdown is shown in the bracketed square, which includes, by segments, Solution systems of JPY2.5 billion and Components and platforms of JPY9.1 billion.
Slide 5: Business overview of Solution Systems Business
Business overview of Solution Systems Business. Sales increased in almost all business areas. However, the factors that prevented profits from increasing as much as revenue growth is due to the failure of the software development project and impact of foreign exchange. Sales in the DX area tot
Slide 6: Business overview of the Components and platforms business
Business overview of the Components and platforms business. Sales in the Mono-zukuri platforms business increased by JPY6.7 billion YOY due to the continued strong performance of business for FA/semiconductor manufacturing equipment. On the other hand, the components business as a whole was affe
Slide 7: Total current assets, inventories, borrowings and equity
The total current assets increased by JPY10.7 billion. By breakdown, inventories increased by approximately JPY28 billion compared to the beginning of the period, and as a result, the balance of borrowings increased by approximately JPY32 billion. Inventories are expected to decrease slowly towa
Slide 8: Free cash flows and cash reserves
Free cash flows were negative JPY28 billion. Despite the difficult environment, we are selectively making necessary investments in parallel. Cash and cash equivalents totaled JPY32.8 billion, and we have the necessary cash reserves. 8
Slide 9: Full-year earnings forecast
I would like to explain the full-year earnings forecast that we announced today. The consolidated total is net sales of JPY372 billion, operating income of JPY3 billion, and a net loss of JPY3 billion. In addition, the dividend forecast has been reduced to JPY20 per share. 9
Slide 10: Current business environment and overall impression
This will be an explanation of the current business environment and overall impression. First, in terms of the current business environment, although it varies depending on the division, the investment environment in OKI's main business areas is relatively firm. There are still some delivery del
Slide 11: FY2022 outlook and supply chain measures
fiscal year, and we hope you will take a look at them later in the meeting. In this context, in FY2022, although net sales are expected to increase year on year, the factors discussed above and the effect of higher profits will be offset by only a slight increase in real profits. In addition, the
Slide 12: Sales changes by segment, YOY and planned
Page 11 is an elevator chart showing YOY and planned changes for each of the two sales segments. The Solution systems is expected to achieve a JPY20 billion increase in sales, due to the steady uptake of profits that were postponed from the previous fiscal year, as well as an increase in sales f
Slide 13: Changes in operating income
This is a chart of changes in operating income. Same elevator chart we presented at the beginning of the fiscal year is shown at upper right, and the chart on page 12 is the continuation of this chart. At the beginning of the fiscal year, we explained that the supply chain impact would be JPY12
Slide 14: Working capital and inventories
Continuing onto page 13, working capital. Unfortunately, both parts and product inventories have swelled at this point in time in 3Q, but we believe that the inventories have peaked out in November 2022. In particular, in the automation systems business, which has been greatly affected by proc
Slide 15: Closing remarks on FY2022 and FY2023 outlook
In addition to this, sales of products in the inventory I explained earlier will be generated, which will lead to optimization of inventory and currently ballooning debt in FY2023. In closing, I would like to conclude by saying that frankly speaking, FY2022 is a very challenging fiscal year, and
Slide 16: (Reference) Quarterly Results
| Me). 6 eee (Reference)Quarterly Results (Billion yen) Net Sales FY2022/3 FY2023/3 1Q 2Q 3Q 4Q FY 1Q 20 3Q Solution Systems 33.9| 35.0| 38.7) 55.0) 162.6 36.1 38.4] 44.7 Components & 45.9| 448] 478] 505| 1890) 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)
Slide 17: (Reference) Major Products and Services
(Reference) Major Products and Services OR 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) + Air
Slide 18: Notice
OR 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 19: | 7) eee
| 7) 6 eee © Copyright 2023 Oki Electric Industry Co., Ltd. rr
Oki Electric Industry — Q3 FY2022 Earnings Presentation on 6ix