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OKI Announces Mid-term Business Plan 2016

TOKYO, November 12, 2013 -- OKI (TOKYO: 6703) has announced "Mid-term Business Plan 2016" with fiscal year 2016 as the final year. In this plan, OKI aims to "become a high-value added creation group, contributing to the realization of safe and comfortable society" and has set milestones in order to reach this aim. Summary of the plan can be found below.

1. Corporate s policy

OKI will maximize profitability in each segment such as mechatronics, solutions for financial and enterprise, telecom and social infrastructure systems as well as specialty areas including its unique LED printers and high-end EMS. OKI will support future sustained growth by holding well-muscled business structure that generates stable profits, without relying on sales expansion. Moreover, OKI aims to become a company that grows sustainably by concentrating business resources, including profits generated, and maximizing business chances in growth areas through promoting strategic alliances.

2. Business targets and planned values

Below are OKI's business targets:

  • Operating profit margin: 6%
  • Shareholders' equity ratio: more than 30%
  • DE ratio: less than 1 times

Planned values - basis of the above targets -

  FY2013 projection FY2016 plan
Net sales 480.0 B yen 560.0 B yen
Overseas sales 147.0 B yen 218.0 B yen
Operating profit 24.0 B yen 34.0 B yen
Operating profit margin (%) 5% 6%
Shareholders' equity ratio 20% More than 30%
DE ratio 1.5 times Less than 1 times
Dividend 3 yen Stable dividend

3. Management strategy

  1. "Expand business in global markets" (overseas sales ratio: 40%)
    • Develop new markets for ATM following Russia and Indonesia.
    • Enter South American ATM market by launching a subsidiary in Brazil through the strategic alliance with ITAU, announced on May 15.
    • Develop cash handling equipment and maintenance service etc for the customer base built with ATMs.
    • Promote high-value added printers for the copier and professional markets worldwide.
  2. "Support customers' ‘asset-free’ management"
    • Enforce and develop markets for "EXaaS™" which provides cloud and LCM services leveraging ATM, information terminals and printers.
    • Develop medical and new energy areas with maintenance and high-end EMS.
  3. "Enter field of next generation infrastructure"
    • Work on measures for disaster prevention and reduction, aging social infrastructure leveraging OKI's sensing and network technologies.
  4. "Invest in growth areas and reinforce cash-generating capability"
    • Cut costs by 10.0 billion yen over the next 3 years through manufacturing and engineering reformation and cost reduction. Reduce 15.0 billion yen of working capital over 3 years with CCC (cash conversion cycle) as KPI.
    • Reinforce R&D in growth areas and invest strategic funds and human resource proactively.
  5. "Reinforce financial foundation"
    • Secure profits and reinforce financial foundation along with reducing working capital.
    • Strengthen shareholders' equity by converting preferred stock to common stock.

About OKI Electric Industry (OKI)

Founded in 1881, OKI Electric Industry is Japan's leading telecommunications manufacturer in the Info-telecom field. Headquartered in Tokyo, Japan, OKI provides top-quality products, technologies, and solutions to customers through its info-telecom systems and printer operations. Its various business divisions function synergistically to bring to market exciting new products and technologies that meet a wide range of customer needs in various sectors. Visit OKI's global website at http://www.oki.com/.

  • The projections and plans in this document are subject to change depending upon the changes of business environments and other conditions.
  • The names of the companies and products mentioned in this document are the trademarks or registered trademarks of the respective companies and organizations.
Press Contact:
Public Relations Division
Phone: +81-3-3501-3835
  • * Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.

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