Oki Electric Industry : Presentation

Financial Results for Q1 of the

FY Ending March 31, 2023

August 10, 2022

Oki Electric Industry Co., Ltd.

© Copyright 2022 Oki Electric Industry Co., Ltd.

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Summary of Financial Results

• We continued to be affected by difficulties in procuring semiconductors and other materials.
• Net sales decreased, due to a production decline caused by a shortage of materials, such as semiconductors.
• Despite the impact on the supply chain, operating income remained unchanged, due to a decrease in fixed costs and other factors.
• Net income improved YOY, due to a decrease in extraordinary losses resulting from structural reforms.

		Q1	Q1	Variance
		FY2023/3	FY2022/3
	(Billion yen)	(Results)	(Results)
	Net sales	78.1	79.9	(1.8)
	Operating income (loss)	(3.0)	(2.9)	(0.1)
	Ordinary income (loss)	(3.1)	(2.6)	(0.5)
	Profit (loss) attributable to	(3.2)	(3.7)	+0.5
	owners of parent
	USD average exchange rate (Yen)	129.6	109.5	+20.1
	EUR average exchange rate (Yen)	138.1	132.0	+6.1

© Copyright 2022 Oki Electric Industry Co., Ltd.

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Segment Information (Net Sales/ Operating Income)

						(Billion yen)
		Q1			Q1
	Net Sales	FY2023/3			FY2022/3	Variance
		(Results)			(Results)
	Solution Systems	36.1	33.9	+2.2
	Components & Platforms	41.9	45.9	(4.0)
	Others	0.1	0.1	±0.0
	Total	78.1	79.9	(1.8)
		Q1		Q1
	Operating Income	FY2023/3			FY2022/3	Variance
		(Results)			(Results)
	Solution Systems	(1.2)		(0.1)	(1.1)
	Components & Platforms	(0.8)		(1.5)	+0.7
	Others	0.1		0.1	±0.0
	Corporate & Eliminations	(1.1)		(1.4)	+0.3
	Total	(3.0)			(2.9)	(0.1)

© Copyright 2022 Oki Electric Industry Co., Ltd.

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Reasons for Changes in Operating Income/Loss

• Production due to difficulty in procuring components and increases in material and transportation costs continue to affect performance.

We are currently working to strengthen our response to supply chain impacts, such as by enhancing procurement capabilities and optimizing prices.

• Sales increased due to a rise in the volume of Mono-zukuri Platforms, which are doing well, and a change in the project mix in the Automation Systems business.
• Fixed costs decreased, due to structural reforms.

Q1		(Billion yen)
Q1
FY2022/3	FY2023/3
Results	Results

(2.9)					(3.0)
+1.3	(3.2)			(0.1)
Changes in	+0.5	+1.4	Impact of
volume &			Changes in	currency
product mix	Supply	Price	fixed costs,	exchange
SS	+0.1	chain impact optimization	etc.
C&P	+1.2	Sales impact	(1.5)	Labor cost etc.
		Material cost
		increases	(1.5)
		Transportation cost
		increases	(0.2)

© Copyright 2022 Oki Electric Industry Co., Ltd.

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Overview: Solution Systems Business

• Revenue from Enterprise Solutions increased, as projects shifted from the previous year due to difficulty in procuring materials.
  Operating income decreased, due to a rise in materials procurement costs.
• DX domain sales 1Q: ¥8.4 B (YOY: ¥6.2 B)

Net Sales	Operating income
	(Billion yen)

			33.9				36.1
(Public Solutions)	10.1				8.9
			(0.1)
(Enterprise Solutions)				14.3				(1.2)
11.3
(DX Platforms)
2.8				2.7
(Construction and
Maintenance Services)	9.7				10.2
											2021FY22/3年度Q1	FY23/32022年度Q1
			FY22/3 Q1			FY23/3 Q1
			2021年度			2022年度			Results		Results
			Results			Results

© Copyright 2022 Oki Electric Industry Co., Ltd.

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