Oki Electric Industry: Financial Results

(Translation)

August 6, 2025

(Amounts less than one million yen have been truncated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

   1. Consolidated operating results (cumulative)

      (Percentage figures indicate year-on-year change)

      	Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Three months ended June 30, 2025	85,077	(13.1)	(1,370)	-	(1,563)	-	(1,643)	-
      June 30, 2024	97,939	20.1	3,860	-	3,919	-	1,805	-

      (Note) Comprehensive income Three months ended June 30, 2025: ¥(1,359) million (-%)

      Three months ended June 30, 2024: ¥1,227 million ((58.7)%)

      	Basic earnings per share	Diluted earnings per share
      Three months ended June 30, 2025	Yen	Yen
      	(18.95)	-
      June 30, 2024	20.82	20.80

   2. Consolidated financial position

      	Total assets	Net assets	Shareholders' equity ratio
      	Millions of yen	Millions of yen	%
      As of June 30, 2025	393,864	140,484	35.6
      As of March 31, 2025	410,965	145,745	35.4

      (Reference) Shareholders' equity As of June 30, 2025: ¥140,387 million

      As of March 31, 2025: ¥145,622 million

2. Dividends

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
   Fiscal year ended March 31, 2025	Yen	Yen	Yen	Yen	Yen
   	-	0.00	-	45.00	45.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Projection)		0.00	-	50.00	50.00

   (Note) Revisions to dividend projection most recently announced: None

3. Consolidated Results Projection for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

   (Percentage figures indicate year-on-year change)

   	Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Basic earnings per share
   Full year	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	450,000	(0.5)	19,000	2.0	17,000	1.1	14,000	12.2	161.46

   (Note) Revisions to operating results projection most recently announced: None

   Notes:

   1. Significant changes in the scope of consolidation during the period: None Newly included: - companies (Company name)

      Excluded: - companies (Company name)

   2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

   3. Changes in accounting policies, changes in accounting estimates and restatements

      1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

      2. Changes in accounting policies due to other reasons: None

      3. Changes in accounting estimates: None

      4. Restatements: None

   4. Number of shares issued (common stock)

      1. Number of shares issued at the end of the period (including treasury shares)

         As of June 30, 2025	87,217,602 shares
         As of March 31, 2025	87,217,602 shares

      2. Number of treasury shares at the end of the period

         As of June 30, 2025	470,308 shares
         As of March 31, 2025	507,427 shares

      3. Average number of shares during the period

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters (Warning on forward-looking statements)

The forward-looking statements including the projection for the financial results contained in this document are based on information currently available to the Company and certain assumptions that the Company deems to be reasonable, and actual results may differ from such statements due to a variety of factors.

(How to obtain supplementary document on financial results)

The Company is scheduled to hold a financial results briefing for institutional investors on August 6, 2025 (Wednesday). The document on financial results is disclosed on TDNet at the same time as this Summary of Consolidated Financial Results and is also made available on the Company's website on the same day.

1. Consolidated Balance Sheets

   		(Millions of yen)
   As of March 31, 2025		As of June 30, 2025
   Assets
   Current assets
   Cash and deposits	36,865	31,061
   Notes and accounts receivable - trade, and contract assets	112,215	92,207
   Finished goods	18,441	21,975
   Work in process	15,122	18,965
   Raw materials and supplies	31,436	30,832
   Other	17,915	20,902
   Allowance for doubtful accounts	(118)	(136)
   Total current assets	231,878	215,807
   Non-current assets
   Property, plant and equipment	60,288	59,223
   Intangible assets	18,153	18,032
   Investments and other assets	100,645	100,801
   Total non-current assets	179,086	178,056
   Total assets	410,965	393,864
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	61,429	53,833
   Short-term borrowings	41,390	43,677
   Provisions	6,861	6,111
   Other	57,311	52,852
   Total current liabilities	166,992	156,475
   Non-current liabilities
   Long-term borrowings	56,773	56,185
   Provisions	1,074	1,105
   Retirement benefit liability	27,100	26,621
   Other	13,278	12,991
   Total non-current liabilities	98,226	96,904
   Total liabilities	265,219	253,379
   Net assets
   Shareholders' equity
   Share capital	44,000	44,000
   Capital surplus	18,940	18,919
   Retained earnings	83,501	77,956
   Treasury shares	(713)	(661)
   Total shareholders' equity	145,728	140,214
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	7,769	8,230
   Deferred gains or losses on hedges	(126)	(334)
   Foreign currency translation adjustment	(7,301)	(7,111)
   Remeasurements of defined benefit plans	(448)	(611)
   Total accumulated other comprehensive income	(105)	173
   Share acquisition rights	44	13
   Non-controlling interests	78	83
   Total net assets	145,745	140,484
   Total liabilities and net assets	410,965	393,864

2. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income

   (For the Three Months Ended June 30, 2024 and 2025)

   		(Millions of yen)
   Three months ended June 30, 2024	Three months ended June 30, 2025
   Net sales	97,939	85,077
   Cost of sales	71,614	65,123
   Gross profit	26,325	19,953
   Selling, general and administrative expenses	22,465	21,324
   Operating profit (loss)	3,860	(1,370)
   Non-operating income
   Interest income	210	268
   Dividend income	420	453
   Foreign exchange gains	794	-
   Gain on sale of investment securities	0	364
   Miscellaneous income	135	202
   Total non-operating income	1,561	1,289
   Non-operating expenses
   Interest expenses	568	441
   Foreign exchange losses	-	459
   Miscellaneous expenses	933	581
   Total non-operating expenses	1,502	1,482
   Ordinary profit (loss)	3,919	(1,563)
   Profit (loss) before income taxes	3,919	(1,563)
   Income taxes - current	291	(87)
   Income taxes - deferred	1,817	161
   Total income taxes	2,109	74
   Profit (loss)	1,810	(1,638)
   Profit attributable to non-controlling interests	4	4
   Profit (loss) attributable to owners of parent	1,805	(1,643)

   Consolidated Statements of Comprehensive Income (For the Three Months Ended June 30, 2024 and 2025)

   		(Millions of yen)
   Three months ended June 30, 2024		Three months ended June 30, 2025
   Profit (loss)	1,810	(1,638)
   Other comprehensive income
   Valuation difference on available-for-sale securities	(1,200)	460
   Deferred gains or losses on hedges	19	(207)
   Foreign currency translation adjustment	853	189
   Remeasurements of defined benefit plans, net of tax	(255)	(163)
   Total other comprehensive income	(582)	279
   Comprehensive income	1,227	(1,359)
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	1,218	(1,364)
   Comprehensive income attributable to non-controlling interests	8	5

3. Consolidated Statements of Cash Flows