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OKI Announces Mid-term Business Plan 2019

TOKYO, May 26, 2017 -- OKI (TOKYO: 6703) has announced Mid-term Business Plan 2019 with fiscal year 2019 as the final year. In this plan, OKI puts the top priority to reinforce earning capacity in order to be a company that can secure stable profitability with a view to establishing a foundation for achieving sustainable growth and evolution. A summary of this plan is outlined below.

1. Basic policy

OKI group will secure solid base of profitability in ICT business while promptly improving profitability with competitive products in Mechatronics systems business. In Printers business, OKI will achieve stable profitability by strategic transformation and pursue further growth in growing EMS business. Moreover, OKI aims for creating new growth businesses including next generation social infrastructure.

2. Business targets and planned values

Business targets:

Operating profit margin
6%
Shareholders' equity ratio
30% or more

Planned values of FY2019 - basis of the above targets -

Net sales
500.0 B yen
Operating income
30.0 B yen
Shareholders' equity
120.0 B yen
Dividend
Stable dividend

3. Business strategies by segments

  1. ICT Business
    • Create new businesses by utilizing IoT as a change driver while securing stable profitability centered on social infrastructure market as an OKI group's core business
    • Aim to be a company, specializing in IoT by utilizing industry-specific applications and co-creation with customers and partners by leveraging the strength of fusing technologies of sensing, networks and data processing
  2. Mechatronics systems Business
    • Boost sales in emerging countries by launching strategic products with superior cost competitiveness
    • Proactively develop retail market in Japan with enhancing product portfolio with a view to expanding sales of products that meet diverse customer needs
  3. Printers Business
    • Shift to niche market strategies and launch products that leverage OKI's strengths in industry printing market such as design, retail and medical
    • Streamline corporate functions and secure stable earnings in accordance with strategic transformation
  4. EMS Business
    • Develop new business areas such as aviation, aerospace and electronical component (trial production) as well as focusing on high-end market in Japan
    • Achieve further growth through aggressive M&A and build EMS into 100.0 B yen business

4. Common measures supporting growth

In R&D, OKI will proactively invest in two main themes; smart sensing and humane mechatronics. OKI sets target of around 45.0 B yen over three years with centering on growing ICT and Mechatronics systems business.

For human resources, as an essential element for achieving sustainable growth and evolution, in addition to the ongoing effort to promote women's active participation bearing steady fruit, the newly established project team will promote work style reforms. Moreover, personnel evaluation system will be improved to the system which can vitalize employees as they can act proactively and tackle the challenges.

Corporate governance will be simplified and organized its management environment. OKI will achieve proactive and solid governance through establishing effective and appropriate structure.

With regards to finance and investment, OKI will selectively make intensive investment in growth and new businesses based on cash reserves and cash from improvement in working capital and assets.

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.
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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