Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — FY2023/3 Earnings Presentation
16 slides from Oki Electric Industry's earnings presentation, May 10, 2023
Slide 1: Financial Results for the FY Ended March 31, 2023
Financial Results for the FY Ended March 31, 2023 May 10, 2023 Oki Electric Industry Co., Ltd. © Copyright 2023 Oki Electric Industry Co., Ltd. 1
Slide 2: Summary of Financial Results
Summary of Financial Results While both net sales and operating income were weak, they were mostly in line with previous forecasts. (operating income in real terms was unchanged YOY). Ordinary income was worse than expected due to reclassification of expenses (about ¥0.9B: extraordinary loss to
Slide 3: Segment Information (Net Sales/ Operating Income)
Segment Information (Net Sales/ Operating Income) (Billion yen) FY2023/3 FY2023/3 FY2022/3 Net Sales Forecasts Variance Variance Results Results (As of Feb. 9) Solution Systems 179.4 183.0 (3.6) 162.6 +16.8 Components & Platforms 189.2 189.0 +0.2 189.0 +0.2 Others 0.5 0.0 +0.5 0.4 +0.1 Total 369.1 3
Slide 4: Reasons for Changes in Operating Income/Loss
Reasons for Changes in Operating Income/Loss The volume increased due to the winning of projects that were shifted from the previous year. Sales shifts and material cost increases due to supply chain impacts continued throughout the year. We reduced the impact of increased material costs by opti
Slide 5: Overview: Solution Systems Business
Overview: Solution Systems Business Net sales increased YOY in all business areas due to the winning of projects that were shifted from the previous year and the acquisition of the aircraft equipment business. Operating income declined from the previous year due in part to deteriorating profitab
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 increased inventories stemming from supply chain impacts, but inventories decreased from the end of Q3. For Q4, inventories decreased by ¥9.3 B and receivables increased by ¥13.8 B. Shareholders’ equity ratio decreased by 3.7 percentage points. Mar. 202
Slide 8: Cash Flows
Cash Flows Operating cash flow worsened YOY due to increased working capital from supply chain impacts. FY2023/3 FY2022/3 (Results) (Results) Variance (Billion yen) Ⅰ Cash flows from operating activities (3.1) 5.9 (9.0) Ⅱ Cash flows from investing activities (17.6) (17.6) ±0.0 Free cash flows (Ⅰ＋Ⅱ
Slide 9: (Reference) Quarterly Results
(Reference) Quarterly Results （Billion yen） Net Sales FY2022/3 FY2023/3 1Q 2Q 3Q 4Q FY １Q 2Q 3Q 4Q FY Solution Systems 33.9 35.0 38.7 55.0 162.6 36.1 38.4 44.7 60.2 179.4 Components & 45.9 44.8 47.8 50.5 189.0 41.9 46.1 49.1 52.1 189.2 Platforms Others 0.1 0.1 0.1 0.1 0.4 0.1 0.1 0.2 0.1 0.5 Total 7
Slide 10: Financial Forecasts
Financial Forecasts Exchange rate assumptions: ¥130/USD Net sales and profit increased YOY. ¥140/EUR We forecast an annual dividend of 30 yen per share ＊Results for FY2023/3 have been retroactively adjusted based on (up 10 yen from the previous year). the reclassification of business segments ef
Slide 11: Reasons for Changes in Operating Income
Reasons for Changes in Operating Income In addition to the shift from the previous year due to the effect of materials procurement, large projects will boost volume significantly. Fixed costs increased due to growth investments (labor, capital investment and R&D). We position labor costs as huma
Slide 12: (Reference) Investments and Cash Flows Forecasts
(Reference) Investments and Cash Flows Forecasts We will continue to make necessary investments for sustainable growth. Investments FY2024/3 FY2023/3 Variance (Billion yen) Forecasts Results Capital Expenditure* 24.0 18.7 +5.3 Depreciation* 15.5 11.3 ＋4.2 R&D 13.0 9.6 ＋3.4 *Scope: property, plant,
Slide 13: (Reference) Business Overview
(Reference) Business Overview Public Solutions Enterprise Solutions （Billion yen） 178.0 （Billion yen） Net sales Net sales 98.0 95.7 112.9 FY2023/3 FY2024/3 Results Forecasts FY2023/3 FY2024/3 Results Forecasts Operating income Operating income 11.5 3.4 4.0 1.5 FY2023/3 FY2024/3 FY2023/3 FY2024/3 Res
Slide 14: (Reference) Revision of Business Segments
(Reference) Revision of Business Segments ■ Transition to a management structure focusing on market alignment and value chain optimization. Up to FY2022 FY2023 onwards Businesses providing safety, security, and convenience through communication infrastructure and social infrastructure solutions, and
Slide 15: (Reference) Major Products and Services
(Reference) Major Products and Services Public Solutions Component Products •Roads (ETC, VICS), air traffic control, disaster •AI edge computers, sensors, IoT networks preparedness, fire prevention •PBXs, business phones, contact centers •Business systems for central government offices, •Cloud s
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. •
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