FINANCIAL HIGHLIGHTS Oki Electric Industry Co., Ltd. and consolidated subsidiaries Years ended March 31 Thousands of U.S. dollars (Note 1) Millions of yen 2010 2011 2012 2013 2014 2014 ¥ 442,949 ¥ 432,651 ¥ 423,480 ¥ 455,824 ¥ 483,112 $ 4,736,392 Operating income 6,508 6,308 11,980 13,475 27,196 266,627 Net income (loss) (3,836) (31,809) 1,555 13,599 27,359 268,225 Ended March 31 For the year Net sales Net cash (used in) provided by operating activities Net cash (used in) provided by investing activities 51,290 1,588 22,791 (11,619) 31,868 312,431 (12,992) (4,423) (9,392) (9,214) (13,977) (137,029) Free cash flow 38,298 (2,835) 13,399 (20,833) 17,890 175,392 ¥ 377,894 ¥ 368,822 ¥ 368,065 ¥ 349,322 ¥ 412,514 $ 4,044,254 Shareholders’ equity 40,532 38,308 41,125 56,072 88,735 869,950 Interest-bearing debt 172,467 152,051 136,478 120,524 119,004 1,166,705 Return on assets (ROA) (%) (1.0) (8.5) 0.4 3.8 7.2 Return on equity (ROE) (%) (9.4) (80.7) 3.9 28.0 37.8 Shareholders’ equity (%) 10.7 10.4 11.2 16.1 21.5 At the year end Total assets Ratios U.S. dollars Yen (Note 1) Per share amounts Net income (loss) Net assets (shareholders’ equity, excluding warrants and minority interests in consolidated subsidiaries) Cash dividends (common stock) ¥ (5.62) ¥ (44.00) ¥ 0.32 ¥ 17.24 ¥ 36.21 $ 0.35 59.40 11.37 13.42 34.40 79.32 0.77 — — — — 3.00 0.02 18,111 16,697 16,736 17,459 21,090 Other information Number of employees Note 1: The U.S. dollar amounts in this annual report are translated from yen, for convenience only, at ¥102 = U.S. $1.00, the approximate exchange rate prevailing on March 31, 2014. 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 2014 Net Sales Operating Income (Billions of yen) (Billions of yen) (Billions of yen) 600 30 40 Net Income (Loss) and Return on Equity (ROE) (%) 100 27.2 27.4 483.1 442.9 432.7 423.5 455.8 20 400 50 13.6 20 37.8 28.0 (3.8) 0 13.5 0 3.9 12.0 200 1.6 (31.8) (9.4) 10 6.5 -20 6.3 -50 (80.7) 0 0 (Ended 2010 March 31) 2011 2012 2013 2014 -40 (Ended 2010 March 31) 2011 2012 2013 2014 -100 2010 (Ended March 31) 2011 2012 2013 2014 Net Income (Loss) (left scale) Return on Equity (ROE) (right scale) Total Assets (Billions of yen) (Billions of yen) 500 100 Shareholders’ Equity and Shareholders’ Equity Ratio R&D Expenses (%) (Billions of yen) 30 20 88.7 412.5 400 377.9 368.8 368.1 80 25 15 349.3 14.6 13.8 21.5 300 60 200 40 100 20 10 16.1 41.1 38.3 15 5 11.2 0 10.7 10 10.4 0 (As of 2010 March 31) 2011 2012 2013 2014 0 (As of 2010 March 31) 13.0 20 56.1 40.5 14.0 13.1 2011 2012 2013 2014 0 (Ended 2010 March 31) 2011 2012 2013 2014 Shareholders’ Equity (left scale) Shareholders’ Equity Ratio (right scale) (Billions of yen) Capital Expenditures and Depreciation (property, plant and equipment, at cost) (Billions of yen) Interest-bearing Debt and Debt/Equity Ratio Free Cash Flow (Times) 200 15 13.1 9.7 10 8.6 8.0 9.3 60 172.5 10.8 10.2 9.6 10.5 8 (Billions of yen) 152.1 150 38.3 6 136.5 30 120.5 119.0 8.6 4.3 100 17.9 4.0 13.4 4 3.3 0 5 50 2.1 (2.8) (20.8) 2 1.3 0 0 (Ended 2010 March 31) 2011 2012 2013 2014 Capital Expenditures Depreciation (property, plant and equipment, at cost) (As of 2010 2011 2012 2013 March 31) Interest-bearing Debt (left scale) Debt/Equity Ratio (right scale) 0 2014 -30 (Ended 2010 March 31) 2011 2012 2013 2014 Annual Report 2014 3