Oki 2009 Annual Report Download - page 26

24 Annual Report 2009
As a result, consolidated segment sales, excluding inter-segment
sales, fell 13.5% year on year to ¥160.7 billion. Operating income dete-
riorated ¥0.8 billion from the previous fiscal year’s ¥8.6 billion to ¥7.8
billion, reflecting the impact of foreign exchange rates and drops in
sales prices despite efforts to reduce procurement costs and thorough
initiatives aimed at controlling overall expenditure.
Other
This segment mainly comprises OKI subsidiaries. Sales of components such as
power-supply units and motors substantially dropped on the back of the rapid
economic deterioration in the second half of the fiscal year under review.
As a result, consolidated segment sales, excluding inter-segment
sales, fell 22.4% from the corresponding period of the previous fiscal
year to ¥28.5 billion. This segment recorded an operating loss of ¥1.4
billion, a negative turnaround of ¥5.5 billion from operating income of
¥4.1 billion in the previous fiscal year.
Semiconductors
As stated above, OKI established a semiconductor business subsidiary in
October 1, 2008 and transferred 95% of its shares in that subsidiary to
ROHM CO., LTD. Therefore, the results of this segment have been calcu-
lated for only the six months from April 1 to September 30, 2008. During
the first half of the fiscal year under review, sales of driver LSIs were down
due to weakening market conditions, the strong yen and LCD panel
makers’ move toward the in-house manufacture of LSIs. In addition, sales
of P2ROMs were affected by a delay in new product introduction.
As a result, consolidated segment sales, excluding inter-segment
sales, dropped ¥84.1 billion year on year to ¥54.1 billion, while operat-
ing income of ¥3.8 billion in the previous fiscal year deteriorated ¥8.9
billion, yielding an operating loss of ¥5.1 billion.
GEOGRAPHIC SEGMENT INFORMATION
Segment information by region is as follows.
Sales in Semiconductors segment declined in all regions, reflecting
the transfer of the semiconductor business subsidiary shares.
Japan
In the domestic market, OKI’s performance was affected by various
factors, including decreased sales in the semiconductor segment; a
substantial decline in sales due to a shrinking of demand from the
postal service following privatization; the withdrawal from low-profit
businesses in the telecom system business based on the measure to
“accelerate business selection and concentration;” and decreases in
production contracts under consignment and subsidiaries’ sales due to
rapidly deteriorating economic conditions. Accordingly, consolidated
sales in Japan, excluding inter-segment sales, fell 24.6% year on year
to ¥385.4 billion. Operating income dropped ¥7.1 billion from ¥10.4
billion to ¥3.3 billion, owing to lower marginal profit due to decreased
sales as well as the impact of a weak performance in Semiconductors
segment despite factors encompassing the reduction of fixed, procure-
ment and production costs as well as improved earnings potential
thanks to the withdrawal from low-profit businesses.
North America
During the fiscal year under review, OKI’s performance in North America
was affected by several factors, including decreased sales in Semicon-
ductors segment, the impact of the strong yen against the U.S. dollar on
Printers segment and a lower shipment volume of color printers and dot-
impact printers. As a result, consolidated sales in North America, exclud-
ing inter-segment sales, dropped 30.2% from the previous fiscal year to
¥41.3 billion. Despite a reduction in fixed, procurement and production
costs in Printers segment, the operating loss worsened ¥0.3 billion from
¥2.0 billion to ¥2.3 billion, reflecting the decline in prices as well as lower
marginal profit due to decreased sales as well as the impact of a weak
performance in Semiconductors segment.
Europe
In the European market, OKI’s performance in Printers segment was
impacted by the strong yen against the euro as well as the decreased
shipment of color printers and sales drop in Semiconductors segment.
As a result, consolidated sales in Europe, excluding inter-segment sales,
declined 15.6% year on year to ¥88.4 billion. Operating income dete-
riorated ¥1.2 billion from ¥3.7 billion in the previous fiscal year to ¥2.5
billion. This was owing to the lower marginal profit due to decreased
sales as well as the impacts of declining prices and a weak performance
in Semiconductors segment despite the reduction in fixed, procurement
and production costs in Printers segment.
Asia
Consolidated sales in Asia, excluding inter-segment sales, fell 31.2%
from the previous fiscal year to ¥30.7 billion. This was attributable to
a sales drop in Semiconductors segment and a decreased dot-impact
printer shipment despite increased ATM shipments to China. Operating
income edged down ¥0.1 billion from ¥1.7 billion in the previous fiscal
year to ¥1.6 billion, thanks to the reduction of fixed, procurement and
production costs, which absorbed the impact of lower marginal profit
due to decreased sales.
NET LOSS
During the fiscal year under review, OKI recorded an extraordinary loss
of ¥10.6 billion comprising write-downs of inventories due to changes
in an inventory valuation method based on the application of the Finan-
−50
−25
0
25
Net Income / Return on Equity [ROE]
Billions of yen
Net Income ROE (%)
2007 2008 2009
−45.0
−36.4
0.6
−30.0%
−61.5%
0.6%
Years ended March 31
−80
0
40
80
−40
Cash Flows
Billions of yen
2007 2008 2009
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Years ended March 31
16.1
28.1
57.5
−59.5
42.5
−22.9
−19.4
18.9
−34.9