Message from the President
Today, the OKI Group held a business strategy meeting for the media, security analysts and corporate investors to announce its "Mid-term Business Plan 2016" - with fiscal year 2016 as the final year.
OKI has executed Program for the enhancement of management base and Program for growth to establish a structure to enable early resumption of dividend and its stable payment, under the current Mid-term business plan in which fiscal year 2013 is the final year.
In the Program for the enhancement of management base, OKI expects to cut more than 20.0 billion yen of costs, compared with fiscal year 2009. For business growth, ATM sales in China have grown to become OKI's core business; social infrastructure systems, which acquired disaster prevention and fire fighting demands, and EMS business, have achieved targets as planned. Based on these achievements, OKI plans a dividend payment of 3 yen at the end of this fiscal year.
In "Mid-term Business Plan 2016", OKI aims to "become a high-value added creation Group, contributing to the realization of safe and comfortable society" in the near future and has set milestones in order to reach this aim.
Under its corporate strategy, "to realize sustainable growth through continuous investment by securing stable profitability", OKI has set business targets of 6% operating profit margin, more than 30% of shareholders' equity, DE ratio of less than 1 times. OKI targets 560.0 billion yen of net sales mainly in overseas sales, which is 80.0 billion yen increase compared with fiscal year 2013 projection, and 40% overseas sales ratio. Operating profit target is set at 34.0 billion yen mainly from Info-telecom systems business and Printer business, a 10.0 billion yen increase compared with fiscal year 2013 projection.
Toward "Securing stable profitability", OKI will create profitability by continuing to acquire renewal demand of social and telecom infrastructure systems, in addition to securing financial systems in Japan and opportunity in Chinese ATM market expansion, as well as through effects of Printer business structural reform, which is underway in fiscal year 2013, and bringing efficiency in each business.
To "Realize continuous growth", OKI will execute various measures with 3 main pillars; "expand business in global markets", "support customers' 'asset-free' management", and "enter domain of next-generation social infrastructure."
Focusing on "expanding business in global markets", OKI will develop new markets with its ATMs, following Russia and Indonesia. OKI will launch a subsidiary in Brazil and enter the South American market through a strategic partnership with ITAU Group. OKI will also expand its line-up including cash handling equipment and maintenance services. Moreover, OKI will promote sales of high-value added printers for the copier and professional markets worldwide.
For "supporting customers' 'asset-free' management", OKI will focus its "EaaS™" which provides cloud and LCM services and develop medical/new energy areas with maintenance and high-end EMS. Additionally, in "entering domain of next generation infrastructure", OKI will execute measures for disaster prevention and reduction, aging social infrastructure, leveraging sensing and network, etc.
Along with these business strategies, OKI will reform manufacturing/engineering and reduce procurement costs and make efforts to cut working capital. In addition, it will reinforce R&D, reallocate human resource to growth areas and promote measures to enforce human resource by hiring resource fit for global businesses etc.
Moving forward, the OKI Group will realize sustainable growth by securing stable profitability and through continuous investments, and in turn, continue to reinforce profitability.
To our shareholders and investors, I ask for your continued and steadfast support as we move forward.
November 12, 2013