FINANCIAL HIGHLIGHTS Oki Electric Industry Co., Ltd. and consolidated subsidiaries Years ended March 31 Thousands of U.S. dollars (Note 1) Millions of yen Ended March 31 2006 2007 2008 2009 2010 2010 ¥ 680,526 ¥ 718,767 ¥ 719,677 ¥ 545,680 ¥ 443,949 $ 4,773,645 10,593 (5,410) 6,200 410 13,957 150,075 5,058 (36,446) 567 (45,011) 3,619 38,913 Net cash provided by operating activities 14,965 16,105 42,543 18,941 51,290 551,505 Net cash used in investing activities (28,555) (34,900) (22,876) 57,457 (12,992) (139,698) Free cash flow (13,590) (18,795) 19,667 76,398 38,298 411,806 ¥ 618,655 ¥ 628,398 ¥ 570,819 ¥ 396,963 ¥ 383,640 $ 4,125,161 Shareholders’ equity 133,887 109,402 94,640 51,656 57,736 620,817 Interest bearing debt 268,307 284,839 267,381 203,766 172,467 1,854,483 For the year Net sales Operating income (loss) Net income (loss) At the year end (Note 2) Total assets Ratios (Note 2) Return on assets (ROA) (%) 0.8 (5.8) 0.1 (9.3) 0.9 Return on equity (ROE) (%) 3.9 (30.0) 0.6 (61.5) 6.6 21.6 17.4 16.6 13.0 15.0 Shareholders’ equity (%) U.S. dollars (Note 1) Yen Per share amounts Net income (loss) Net assets (shareholders’ equity, excluding warrants and minority interests in consolidated subsidiaries) Cash dividends ¥ 8.27 ¥ (56.27) ¥ 0.83 ¥ (65.90) ¥ 5.30 $ 0.05 218.96 160.13 138.55 75.64 84.61 0.90 3.00 — — — — — 21,175 21,380 22,640 17,415 18,111 Other information Number of employees Note 1: The U.S. dollar amounts in this annual report are translated from yen, for convenience only, at ¥93 = US$1.00, the approximate exchange rate prevailing on March 31, 2010. Note 2: Effective the year ended March 31, 2007, the Company adopted an accounting standard for the presentation of net assets in the balance sheet and the related implementation guidance. In this connection, the five-year summary has been restated to conform to the presentation and disclosure of the consolidated financial statements for the year ended March 31, 2007. Note 3: Results prior to and including the second quarter of the year ended March 31, 2009 include OKI’s semiconductor business. In October 2008, OKI spun off the semiconductor business into a separate company and transferred 95% of that company’s shares to ROHM Co., Ltd. Forward-looking Statements This annual report contains forward-looking statements concerning the OKI Group’s future plans, financial targets, technologies, products, services and performance. These forward-looking statements represent assumptions and beliefs based on data and calculation methods currently available to OKI as of the date of publication, and therefore OKI does not guarantee the accuracy of statements are subject to changes attributable to business risks and uncertainties, which may affect OKI’s performance and consequently cause actual results to differ from our forecasts. 2 Annual Report 2010 Net Sales Operating Income (Loss) (Billions of yen) (Billions of yen) 800 15 Net Income (Loss) and Return on Equity (ROE) (Billions of yen) 10 14.0 718.8 719.7 680.5 12 600 0 10.6 9 545.7 443.9 6.2 6 400 5.1 (%) 6.6 3.6 3.9 （36.4） 0.6 （45.0） 0.6 10 0 -10 -10 -20 -20 （30.0） -30 -30 3 200 -40 -40 -50 -50 0.4 （5.4） 0 -3 -60 -60 （61.5） 0 2007 2008 2009 2010 -70 -70 -6 (Ended March 31) 2006 (Ended March 31) 2006 2007 2008 2009 2010 (Ended March 31) 2006 2007 2008 2009 2010 Net Income (Loss) (left scale) Return on Equity (ROE) (right scale) Shareholders’ Equity and Shareholders’ Equity Ratio Total Assets (Billions of yen) (Billions of yen) 800 150 R&D Expenses (%) (Billions of yen) 25 25 20 20 133.9 21.6 618.7 628.4 600 120 21.3 109.4 17.4 94.6 16.6 570.8 90 19.6 18.2 16.8 15.0 13.0 15 15 10 10 5 5 14.6 397.0 383.6 400 57.7 60 51.7 200 30 0 0 (As of March 31) 2006 2007 2008 2009 2010 0 (As of March 31) 2006 2007 2008 2009 2010 0 (Ended March 31) 2006 2007 2008 2009 2010 Shareholders’ Equity (left scale) Shareholders’ Equity Ratio (right scale) Capital Expenditures and Depreciation (property, plant and equipment, at cost) Interest Bearing Debt and Debt/Equity Ratio (Billions of yen) (Billions of yen) 40 Free Cash Flow 300 37.7 268.3 (Times) 284.8 4 3.9 (Billions of yen) 80 76.4 267.4 33.5 60 30 26.6 27.3 26.8 25.4 203.8 3 172.5 2.8 15.9 100 2 2.0 0 0 0 (Ended March 31) 2006 2007 2008 2009 19.7 20 10.5 8.6 10 38.3 40 2.6 18.8 20 3.0 200 2010 0 (As of March 31) 2006 2007 2008 2009 2010 Capital Expenditures Interest Bearing Debt (left scale) Depreciation (property, plant and equipment, at cost) Debt/Equity Ratio (right scale) （13.6） （18.8） -20 (Ended March 31) 2006 2007 2008 2009 2010 Annual Report 2010 3