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Medium-Term Business Plan 2025

OKI has formulated "Medium-Term Business Plan 2025", covering the period from FY2023 through FY2025. This plan is to ensure that we steer toward growth, as a company "Delivering OK! to your life", by breaking free from the downward trend and strengthening our capacity to adapt to changing environments based on the new business structure established in April 2023.

OKI's Vision

OKI solves social issues through critical Mono-zukuri and Koto-zukuri as a company that "Delivering OK! to your life". OKI's vision for 2031, the 150th anniversary of the company's founding, is to provide value that leads to the resolution of social issues as a company that does not stop and contributes to the maintenance of social infrastructure in the three fields of contribution: safe and convenient social infrastructure; job satisfaction and productivity enhancement; and conservation of global environment.

Corporate Philosophy

Basic Policy

In the "Medium-Term Business Plan 2025", we will steer toward growth and break free from the downward trend to achieve this vision. To this end, we will first return to FY2019 levels of performance and restore our financial base. In order to create future business for FY2026 and beyond, we will implement the following five measures as part of our steering to growth 1st Stage.

Steer toward growth and break free from the downward trend

Steering toward growth 1stStage

1.Revision of business portfolios

In April 2023, we reorganized our previous eight business divisions into five business divisions and four segments (Public Solutions, Enterprise Solutions, Component Products, and EMS) as a new business structure designed to rationalize business scale, optimize the value chain of the business, and strengthen business management. This shift has clarified the positioning of each segment. In addition to realizing a dynamic and speedy business development that includes subsidiaries, we will strengthen business management by introducing a ROIC perspective. Under this Medium-Term Business Plan, we will strive to improve earnings by reliably securing large-scale projects and expanding our focus areas with strategies tailored to the positioning of each segment.

Revision of business portfolios

2.Strengthening sales, technology, and production functions

Under the new structure, in addition to reorganizing sales sections along market axes, we established the new Global Business & Marketing Division to restart overseas businesses. Additionally, we established Companywide organizations: the Technology Division, to manage technology development; and the Production & Procurement Management Division, to maximize efficiency at all plants while optimizing QCD and supply chains. By strengthening these functions, the OKI Group will demonstrate its comprehensive strengths and remain resistant to changes in external conditions and boost its business capabilities.

Strengthen functional divisions and boost business capabilities

3.Creating future business

By evolving the Group's manufacturing foundation and innovation activities, and using the technologies and processes developed there for solutions, products, and services, we will create value in the three areas of contribution and contribute to solving social and customer issues. We will continue to enhance OKI's strengths: edge technologies, including information and communications technologies; sensing technologies; and the component technologies essential to self-service and automation. At the same time, we will focus on data management to make progress on developing platforms to intensify use of data collected from the real world, with social infrastructure, manufacturing, and ocean as our focus areas. In addition, we will strengthen innovation activities centered on the Innovation Business Development Center, which was established as a business unit responsible for new businesses, and accelerate commercialization for the future in areas such as advanced remote operations, logistics, healthcare/medical care, and Crystal Film Bonding (CFB), with a view to global expansion.

Leveraging OKI's strengths and know-hoe to solve social issues in focused areas

4.Improving financial foundation and effective investments

We will invest to expand our business premised on improving our financial foundations and maintaining our BBB credit rating. In addition to growing earnings by steadily capitalizing on projects carried over from the previous Medium-Term Business Plan and on large-scale projects, we will swiftly rectify our working capital, which has grown excessive due to the impact of supply chain issues, and optimize our asset holdings through the sale of cross-shareholdings and other means. We will also steadily implement well-balanced investments including returns to shareholders and active capital investment in growth businesses.

Execute investment aimed at further business expansion, while maintaining a BBB credit rating

5.Practicing sustainability management

In addition to formulating the new Medium-Term Business Plan, we have updated our material issues (Materiality) for sustainability management. We plan to make steady progress in environmental, social, and governance fields not only by realizing products and services to solve social issues in the three areas of contribution, but also by reducing the environmental impact through business activities, transforming into a corporate culture that continuously create value, and strengthening management foundation to support sustainable growth.

Practicing sustainability management

Management Targets

We will break free from the downward trend and return to net sales and operating income at FY2019 levels

Management Targets

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