Financial InformationResults Summary

Overview of Operating Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

The Japanese economy has been on a moderate recovery trend due to the effects of various government policies, with improvements in employment and the income situation. On the other hand, the outlook remains uncertain due to factors such as continued rising prices, U.S. trade policy trends, and exchange rate fluctuations. In this environment, OKI's vision for 2031, the 150th anniversary of the Company's founding, is to provide value that leads to the resolution of social issues as a company that contributes to sustaining uninterrupted social infrastructure in the three fields of contribution: safe and convenient social infrastructure, job satisfaction and productivity enhancement, and conservation of the global environment. In order to realize OKI's vision, we have started the Medium-Term Business Plan 2025 since the previous fiscal year. In this fiscal year, the second year of Medium-Term Business Plan 2025, we accelerated cultural transformation and style change to further steer the Company toward growth. In the consolidated fiscal year ended March 2025, Public Solutions, Enterprise Solutions, and Component Products all performed steadily. Their strong performance offset the negative impact from weak demand in EMS, resulting in positive overall results. As a result, net sales reached ¥452.5 billion (a year-on-year increase of ¥30.6 billion, or 7.3%). On the profit front, although there were rises in personnel costs and fixed costs due to growth investments, increased sales led to operating income amounting to ¥18.6 billion (a year-on-year decrease of ¥0.1 billion, or 0.3%). Ordinary income was ¥16.8 billion (a year-on-year decrease of ¥1.5 billion, or 8.1%) due to a deterioration in terms of foreign exchange gains/losses, while profit attributable to owners of parent was ¥12.5 billion (a year-on-year decrease of ¥13.1 billion, or 51.3%).

Performance by Segment for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

Public Solutions

Net sales reached ¥130.5 billion (a year-on-year increase of ¥36.5 billion, or 38.9%), and operating income was ¥14.1 billion (a year-on-year increase of ¥9.7 billion, or 217.2%). Both Social Infrastructure Solutions and TOKKI Systems grew, expanding net sales to 1.4 times their previous size, and the operating income ratio doubled to a level of 10%.

Enterprise Solutions

Net sales were ¥179.8 billion (a year-on-year decrease of ¥0.3 billion, or 0.2%), and operating income was ¥13.1 billion (a year-on-year decrease of ¥8.9 billion, or 40.3%). Due to large-scale projects from the second half of the previous fiscal year, both net sales and profits remained at high levels.

Component Products

Net sales were ¥75.8 billion (a year-on-year increase of ¥2.4 billion, or 3.2%) and operating income was ¥2.9 billion (a year-on-year increase of ¥2.3 billion, or 417.9%). Operating income improved due to profit-focused management.

EMS

Net sales were ¥65.9 billion (a year-on-year decrease of ¥8.0 billion, or 10.8%) and there was an operating loss of ¥0.8 billion (a year-on-year deterioration of ¥1.9 billion). Due to the prolonged recession in Semiconductor and FA/Robotics market, sales and operating income both declined for the second consecutive year.

Others

Net sales were ¥0.4 billion (flat year on year). The operating loss was ¥1.5 billion (a year-on-year deterioration of ¥0.4 billion), due to investments essential for growth, including research and development aimed at creating future businesses.

Overview of Financial Position for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

Assets, liabilities, and net assets

At the end of the consolidated fiscal year ended March 31, 2025, total assets were ¥411.0 billion, down ¥12.4 billion year on year. Shareholders' equity increased ¥4.4 billion from the end of the previous fiscal year to ¥145.6 billion, mainly due to the recording of ¥12.5 billion in profit attributable to owners of parent, a ¥5.5 billion decrease in accumulated other comprehensive income, and the payment of ¥2.6 billion in ordinary dividends. As a result, the shareholders' equity ratio was 35.4%. In terms of assets, inventories and investment securities declined by ¥5.8 billion and ¥4.9 billion, respectively. In terms of liabilities, borrowings fell ¥11.8 billion from ¥110.0 billion as of March 31, 2024 to ¥98.2 billion.

Cash flows

Net cash provided through operating activities amounted to ¥39.3 billion (compared with ¥24.7 billion in the previous fiscal year), mainly due to the recording of pre-tax profit and improved working capital. Net cash used in investing activities came to ¥19.6 billion (compared to ¥14.3 billion in the previous fiscal year), mainly because of purchases of property, plant, and equipment. As a result, free cash flow (operating cash flow plus investing cash flow) amounted to an inflow of ¥19.7 billion (compared to ¥10.4 billion in the previous fiscal year). Net cash used by financing activities was ¥17.9 billion (compared with ¥15.7 billion in the previous fiscal year), mainly due to repayments of borrowings and lease obligations. Owing to these factors, the balance of cash and cash equivalents at the end of the fiscal year ended March 31, 2025 amounted to ¥36.2 billion, up from ¥34.4 billion at the end of the previous fiscal year.