Oki 2014 Annual Report Download - page 25

23
Annual Report 2014
FINANCIAL REVIEW
Annual Report for Oki Electric Industry Co., Ltd. and its Consolidated Subsidiaries
OVERVIEW OF
THE FISCAL YEAR ENDED MARCH 31, 2014
NET SALES AND OPERATING INCOME
In the fi scal year under review, the global economy showed some
signs of recovery, such as a declining unemployment rate and an
upturn in consumer spending in the U.S. and gradual improvement
in both Europe and emerging economies. In Japan, too, the econo-
my recovered modestly with increases of consumer spending and
industrial production and improved employment conditions.
Amid this business environment, the OKI Group recorded con-
solidated net sales of ¥483.1 billion, a 6.0% year-on-year increase,
due to solid earnings at key segments, led by the Info-Telecom
Systems segment, along with a lift from a weaker yen. Operat-
ing income came to ¥27.2 billion, a year-on-year increase of ¥13.7
billion, on fixed-cost cuts achieved via structural reforms and an
impact of the product mix improvement in the Printers segment, in
addition to a contribution from the weaker yen.
SEGMENT INFORMATION
Info-Telecom Systems
In the Info-Telecom Systems segment, sales increased by 3.6%
year on year to ¥303.6 billion. In the solutions & services busi-
ness, despite growth in fi nancial systems-related solutions, sales
declined due to a decrease of large service-related projects. In
the telecom systems business, sales rose steadily in enterprises
network and maintenance and construction work along with core
network. In the social infrastructure systems business, sales
grew due to digitalization of wireless communication systems
for fi refi ghting and emergency use and solid demand in disaster
prevention-related equipment. In the mechatronics systems busi-
ness, sales climbed thanks to brisk domestic demands in ATMs
for convenience stores and cash handling equipment and bank
branch terminals for fi nancial institutions coupled with broadly fa-
vorable ATM trends in China, despite a delay in shipments to one
of the customers until the next period. Also, the sales increase
due to a weaker yen was ¥8.1 billion.
Operating income in the Info-Telecom Systems segment slid
¥400 million from the year-ago level to ¥23.4 billion due to price
declines and higher costs.
Printers
In the Printers segment, net sales increased by 12.1% year on
year to ¥124.8 billion. In LED printers, sales of business-use LED
printers increased due to a better product mix refl ecting a shift to
higher value-added models resulted from redefi ning its marketing
strategy in conjunction with favorable sales of new products for
the office solutions/proffesional domains. In dot-impact printers,
the size of the overall market continued to shrink. The sales in-
crease from a weaker yen came to ¥17.0 billion.
Operating income in the Printers segment totaled ¥5.1 billion,
a sharp improvement of ¥13.9 billion year-on-year due to a better
product mix coupled with cuts to fi xed costs coming from struc-
tural reforms.
(Billions
of yen)
(Billions
of yen)
(Ended
March 31)
(Ended
March 31)
Net Sales Operating Income
500
400
200
300
100
02012 2013 2014
423.5
455.8
30
10
20
02012 2013 2014
12.0
27.2
13.5
483.1483.1
(Ended
March 31)
(Ended
March 31)
Net Sales (Billions
of yen)
(Billions
of yen) Operating Income
Info-Telecom Systems
2012 2013 2014 2012 2013 2014
400
300
200
100
0
267.2
303.6
293.0
25
20
15
5
10
0
23.4
23.4
23.8
23.8
18.718.7
Printers
(Ended
March 31)
(Ended
March 31)
Net Sales Operating Income
(Loss)
(Billions
of yen)
(Billions
of yen)
2012 2013 2014 2012 2013 2014
150
90
120
60
30
0
10
0
5
-10
-5
(8.8)(4.3)
5.1
107.4
124.8
111.4
111.4