Oki 2012 Annual Report Download - page 23

15
(Billions
of yen)
(%)
(Ended March 31)
R&D Expenses/
R&D Expenses to Net Sales
9
12
6
0
3.5
2.5
3.0
2.0
0
3 1.5
2010 2011 2012
14.6
13.8
3.3 3.2
13.1
3.1
R&D Expenses (left scale)
R&D Expenses to Net Sales (right scale)
（0. ）
（0. ）
（0. ）
Annual Report 2012 21
Net cash used in financing activities amounted to ¥17.6 billion,
an increase of ¥28.8 billion from the previous fiscal year. This was
due to the repayment of borrowings, mainly short-term borrow-
ings, and because the previous fiscal year had an inflow from the
issuance of Class A Preferred Stocks by private placement to a
third party.
As a result, cash and cash equivalents at fiscal year-end stood
at ¥75.9 billion, down from ¥79.6 billion a year earlier.
CAPITAL EXPENDITURES, DEPRECIATION, AND RESEARCH
AND DEVELOPMENT EXPENSES
Capital expenditures increased ¥1.3 billion year on year, to ¥9.3
billion. This is due mainly to recovery-related investment for the
flood damage in Thailand. Depreciation declined ¥1.1 billion year
on year, to ¥8.6 billion. R&D expenses totaled ¥13.1 billion, down
¥0.7 billion from the previous fiscal year, reflecting the change-
over period for the product development of new printers.
OUTLOOK FOR
FISCAL YEAR ENDING MARCH 31, 2013
In the fiscal year ending March 31, 2013, the world economy is
expected to continue a moderate recovery trend despite concerns
over the delayed economic recovery caused by the prolonged fis-
cal issues in Europe and uncertainty regarding the slowdown of
economic growth in emerging countries, such as China, that have
been driving the world economy. The Japanese economy is also
expected to recover moderately due to the restoration demand
for Great East Japan Earthquake and convergence of the impact
of the flood damage in Thailand, despite concerns over the further
appreciation of the yen.
The next fiscal year is the middle year of the Group’s three-
year mid-term business plan. While an impact from currency
fluctuation risks and falling product prices are expected, the OKI
Group will ensure revenues by focusing on securing replacement
demand in financial and telecom systems, expanding profits in the
maintenance and services business, and acquiring restoration de-
mand for firefighting digital wireless communication systems and
disaster prevention administrative radio systems. Moreover, we
will accelerate measures for growth and continue to expand ATM
business in China, upsize services business such as cloud com-
puting and ATM-LCM services, expand sales through new product
launches, and undertake proactive investment in the Printers busi-
ness, as well as explore new areas in the EMS business. Through
these measures, we forecast a ¥11.9 billion year-on-year increase
in consolidated net sales, to ¥440.0 billion.
Operating income is expected to increase by ¥1.1 billion year
on year to ¥18.5 billion, owing to the rise in marginal profit caused
by the increase in volume as well as a reduction in variable costs,
which are expected to offset the increase in costs due to proac-
tive investments for growth, such as sales investment in the
Printers segment. Net income is expected to increase by ¥3.0
billion to ¥11.0 billion, due to the rise in operating income and
because there will be no extraordinary loss related to the flood
damage in Thailand recorded in the previous fiscal year.
The above forecasts for the fiscal year ending March 31, 2013
are based on the assumed exchange rates of ¥76.0 to the U.S.
dollar and ¥100.0 to the euro.
Performance Forecasts for the Fiscal Year Ending March 31, 2013
(Billions of yen unless otherwise stated)
Operating Net Income
Net Sales Income Net Income per Share (Yen)
¥440.0 ¥18.5 ¥11.0 ¥13.64
BUSINESS AND OTHER RISKS
The forecasts and projected operating results contained in this re-
port are based on information available and assumptions deemed
rational at the time of preparation, and thus entail inherent uncer-
tainties. Accordingly, investors are cautioned that actual results
may differ materially from those projected as a result of a variety
of factors. The following items are business and other risks that
the OKI Group considers may significantly influence investors’
judgments. The following are also major factors that could possi-
bly affect the Group’s actual performance.
It should be noted, however, that factors that may affect the
Group’s performance are not limited to these items. The OKI
Group is aware of the potential impact these risks may have if any
were to occur and is implementing measures to avoid such oc-
currence, as well as to minimize the weight of their impact should
they occur.
(1) Political and Economic Trends
Demand for the OKI Group’s products is subject to political and
economic trends in the individual countries and regions in which
they are sold. Accordingly, economic recession, the resulting con-
traction in demand in the OKI Group’s principal operating markets
of Japan, North America, Europe and Asia and changes in the
import-export policy for foreign products may impact its business
performance and financial position.