Oki 2010 Annual Report Download - page 30

26 Annual Report 2010
Other
This segment mainly comprises OKI subsidiaries. During the year,
the components-related business remained weak given the eco-
nomic deterioration since the latter half of 2008. Accordingly,
consolidated segment sales fell 16.4% year on year to ¥23.8 billion.
However, operating loss declined ¥1.0 billion from the previous fis-
cal year, to ¥0.4 billion, as optimization of fixed costs compensated
for the downward impact of volume decline on profit.
GEOGRAPHIC SEGMENT INFORMATION
The transfer of shares in the semiconductor subsidiary had an
impact on OKI’s performances in each region.
Japan
In the domestic market, OKI recorded an increase in sales of GE-
PON systems to telecom carriers and information systems to
government agencies. However, its performance was negatively
affected by various factors, including; decreased sales in the semi-
conductor segment, ATM replacements for the retail markets and
large-scale bank branch system projects having run their course;
the withdrawal from low-profit businesses in the telecom systems
business based on the measure to “accelerate business selection
and concentration”; lower sales of systems to the corporate sector
due to economic recession; and decreases in production contracts
under consignment and subsidiaries’ sales. Accordingly, consoli-
dated sales in Japan declined 19.2% year on year to ¥311.2 billion.
Operating income increased ¥15.0 billion year on year to ¥18.3 bil-
lion, owing to improved profitability due to reductions in
procurement and production costs and optimization of fixed costs,
as well as withdrawal from low-profit businesses despite the
downward impact of the sales decline on profit.
North America
During the fiscal year under review, OKI’s performance in North
America was affected by several factors, including decreased
sales in Semiconductors segment, the impact of the strong yen
against the U.S. dollar on the Printers segment, a lower shipment
volume of SIDM due to overall market contraction, and the beefing
up of the printers business. As a result, consolidated sales in
North America dropped 36.6% from the previous fiscal year, to
¥26.2 billion. Operating loss improved ¥1.3 billion year on year to
¥1.0 billion, owing to optimization of fixed costs, reductions of pro-
curement and production costs in the printers business, which
absorbed the impact of lower profit due to decreased sales.
Europe
In the European market, OKI’s performance in the Printers seg-
ment was impacted by the strong yen against the euro as well as
the decreased shipment of SIDM due to overall market contrac-
tion. Despite a sales increase owing to the introduction of MFP to
OKI’s Color NIP lineup, as well as the introduction of new items
and sales promotion activities to bolster Mono NIP sales, consoli-
dated sales in Europe declined 8.9% year on year to ¥80.5 billion.
Operating income dropped ¥1.1 billion from the previous fiscal
year, to ¥1.4 billion, due to restraint in color printing outlays
caused by economic recession, as well as lower sales prices and
the yen’s appreciation against the euro. This was despite the posi-
tive impact of fixed cost optimization, together with reduced
procurement and production costs in the printers business.
Asia
Consolidated sales in Asia fell 15.0% from the previous fiscal year,
to ¥26.1 billion. This was attributable to a sales drop in the
Semiconductors segment and a decreased SIDM shipment due to
overall market contraction, despite increased ATM shipments to
China. Operating income increased ¥0.3 billion from the previous
fiscal year, to ¥1.9 billion, thanks to the reduction of fixed, procure-
ment and production costs, which absorbed the impact of lower
profit due to decreased sales.
NET INCOME
During the fiscal year under review, OKI recorded a net income of
¥3.6 billion, a positive turnaround of ¥48.6 billion from the previous
fiscal year. Main contributory factors included higher operating
income and an improvement in non-operating income/expenses,
centering on a decline in interest expense, as well as the absence
of major extraordinary losses reported in the previous fiscal year,
when OKI revamped its business structure and changed its sys-
tems. Against this backdrop, net income per share increased
¥71.20 from the previous fiscal year, to ¥5.30.
10
(Billions of yen) (%)
(Ended March 31)
Net Income (Loss)/
Return on Equity [ROE]
-30
-10
-50
-60
-20
0
-40
-70
10
-30
-10
-50
-60
-20
0
-40
-70
2008 2009 2010
0.6 (45.0) 3.6
60
(Billions of yen)
(Ended March 31)
Cash Flows
0
40
-20
20
-40
-60
2008 2009 2010
30
(Billions of yen)
(Ended March 31)
Capital Expenditures/
Depreciation (property, plant
and equipment, at cost)
10
20
0
2008 2009 2010
26.8
10.5
25.4
15.9
0.6%
(61.5%)
6.6%
42.5
(22.9) (19.4)
57.5
18.9
(59.5)
51.3
(13.0)
(31.3)
8.6
Net Income (Loss) (left scale)
Return on Equity (ROE) (right scale)
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Capital Expenditures
Depreciation (property, plant
and equipment, at cost)
18.8