Oki 2007 Annual Report Download - page 26

Printers
In the printer segment, sales of business-use color NIPs increased
and was significantly impacted by depreciation of the Japanese yen.
In this market, however, intense price competition continued among
manufacturers aiming to increase their market share.
Based on the aforementioned, consolidated sales, excluding inter-
segment sales, climbed 16.6% year on year to ¥187.1 billion. Operat-
ing income, on the other hand, declined ¥2.4 billion from ¥4.1 billion
in the previous fiscal year to ¥1.7 billion. This was attributed mainly
to delays in a shift to mid- and high-range printer models with higher
profit rates.
Asia
Sales in Asia, excluding inter-segment sales, increased 25.8% to
¥44.6 billion due to favorable expansion of sales in ATMs and printers,
especially in the Chinese market. Operating income fell ¥0.8 billion to
¥0.7 billion from ¥1.5 billion in the previous fiscal year.
NET INCOME
On account of an ¥16.0 billion, year on year, increase in operating
loss and the realization of ¥17.8 billion in deferred tax assets, net loss
totaled ¥36.4 billion, a drop of ¥41.5 billion from ¥5.1 billion in net
income recorded in the previous fiscal year.
In line with this increase in net loss, net loss per share was ¥56.27
compared to ¥8.27 as net income per share in the previous fiscal year.
FINANCIAL POSITION
Assets, Liabilities and Shareholders’ Equity
Compared with the previous fiscal year-end, total assets increased
¥9.7 billion. Main factors were increases of ¥11.4 billion in cash and
cash equivalents, ¥14.0 billion in note and accounts receivable and
¥4.5 billion in property, plant and equipment. On the other hand,
investments in securities and deferred tax assets decreased ¥12.0 bil-
lion and ¥17.8 billion, respectively.
In total liabilities and net assets, retained earnings decreased ¥39.0
billion. Common stock and additional paid-in capital increased ¥18.0
billion, owing to partial exercise of convertible bonds and a ¥16.5 bil-
lion increase in interest-bearing debt.
CASH FLOWS
In the fiscal year under review, net cash provided by operating activi-
ties increased ¥1.1 billion to ¥16.1 billion from ¥15.0 billion in the previ-
ous fiscal year, mainly due to an improvement in working capital.
Net cash used in investing activities narrowed ¥6.3 billion to ¥34.9
billion from ¥28.6 billion in the previous fiscal year. This was attributed
to a drop in gain on sale of investments in securities.
Free cash flows, which are the total of cash flows from operating
and investing activities, were negative, totaling ¥18.8 billion, a ¥5.2
billion downturn from the previous fiscal year.
Net cash provided by financing activities amounted to ¥28.1 bil-
lion. This was due to issuance of convertible bonds and long-term
debt against the redemption of bonds and the repayment of long-term
debt.
GEOGRAPHIC SEGMENT INFORMATION
Japan
In the domestic market, despite the downturn of investment in fixed-
line systems by telecommunication carriers, sales of financial institu-
tion system equipment increased owing to an investment recovery
in the financial industry and expansion in the printer market. As a
result, sales, excluding inter-segment sales, grew 1.9% year on year
to ¥503.9 billion. Delays in business cost reductions by enterprises,
and the sales decrease in the telecommunication carrier and semicon-
ductor businesses exerted a negative influence on operating income,
which fell ¥17.0 billion from ¥20.6 billion to ¥3.6 billion.
North America
The printer business was robust, although sales in semiconductors
declined. Sales decreased 0.5% to ¥65.3 billion. The OKI Group
posted an operating loss of ¥0.2 billion, a decrease of ¥1.3 billion, year
on year.
Europe
Sales in Europe, not including inter-segment sales, climbed 23.7%
to ¥104.9 billion, owing to significant sales increases in the printer
and semiconductor businesses. The OKI Group recorded operating
income of ¥2.0 billion, an improvement of ¥3.9 billion from an operat-
ing loss of ¥1.9 billion in the previous fiscal year.
Net Income / Return on Equity [ROE]
Billions of yen
‒
40
‒
20
0
20
9.5%
2005
11.2
5.1
3.9%
2006
‒36.4
‒30.0%
2007
Net Income ROE (%)
‒50
0
50
100
59.3
2005 2006
15.0
‒26.9
‒41.5
‒28.6
0.8
16.1
‒34.9
28.1
2007
Cash Flows
Billions of yen
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
137.7 160.5 187.1
（Printers）
Net Sales
Billions of yen
Operating Income
Billions of yen
7.8
4.1 1.7
25 Annual Report 2007