During fiscal year 2012, there was a sense of uncertainty toward economic recovery against the backdrop of economic downturn caused by the prolonged financial crisis in Europe and slowdown of economic growth in emerging countries. However, economic climate is improving due to the avoidance of the fiscal cliff in the US and high expectations for economic recovery based on measures taken by the new administration in Japan.

In this business environment, OKI Group's net sales for all segments increased, recording net sales of 455.8 billion yen, a 32.3 billion yen increase year-on-year. Operating income was 13.5 billion yen, a 1.5 billion yen increase year-on-year due to increase in marginal profit associated with rise in volume mainly in Info-telecom business and reduction of variable costs which offset price decline, impact of currency exchange and increase in fixed costs etc.

Recurring income increased by 11.2 billion yen year-on-year to 20.3 billion yen, due to recording gain on foreign exchange. Net income improved vastly by 12.0 billion yen to 13.6 billion yen, as the disaster loss caused by the flood in Thailand accrued in the last fiscal year cleared and also gain on sale of property was recorded which offset loss on suspending sales activities of a Spanish consolidated subsidiary.

OKI places returning profits stably and continuously to our shareholders as the most paramount task. However, OKI regrets to pass dividends for the fiscal year 2012 since establishment of the basis to enable stable dividends continuously is not complete.

The uncertain economic climate, such as the prolonged financial crisis in Europe and slowdown of economic growth in emerging countries, will continue for fiscal year 2013. However, it is expected to recover slowly due to the high expectations for economic measures taken by the new Japanese administration and depreciation of yen caused by monetary easing, in addition to signs of economic recovery in the US.

Fiscal year 2013 is the final fiscal year under the Mid-term Business Plan during which OKI will focus on acquiring demands of systems designed for financial institutions, telecom-related systems, fire prevention digital wireless communication systems as well as disaster prevention wireless systems, which are all part of the social infrastructure system, and endeavor to secure stable profits in fundamental businesses.

Moreover, OKI will accelerate overseas business development and implement measures to revamp the Printer business. Through these measures, OKI projects net sales to increase by 4.2 billion yen to 460.0 billion yen.

OKI expects operating income to increase by 8.5 billion yen to 22.0 billion yen due to reduction in fixed costs etc., as an outcome of revamping the Printer business structure, in addition to reduction in variable costs and impact of currency exchange.

OKI projects net income to decrease by 2.1 billion yen to 11.5 billion yen since it will not anticipate the impact of currency exchange in other income and record expenses for enhancing management base of Printer business, etc.

The OKI Group will make the utmost efforts to accomplish the targets set in the Mid-term Business Plan while enhancing profitability and continue to work for an early resumption of dividends in order to respond to its stakeholders' trust. OKI will decide on dividend for fiscal year 2013 at a later stage by examining company performance etc.

To our shareholders and investors, I ask for your continued and steadfast support as we move forward.

May 9, 2013