Representative Director and COO
I would like to express my sincere gratitude for your continuous support.
Society is at a major turning point as we respond to increasingly serious environmental and climate change issues and adapt to new lifestyles brought about by the spread of COVID-19. Both individuals and companies are required to take a proactive stance in resolving issues to realize a sustainable society. OKI is working to realize products and services that resolve seven social issues (aging infrastructure, natural disasters, transportation issues, environmental issues, labor shortages, labor productivity, and infectious diseases) based on its materiality.
This year, OKI is entering the final year of its Medium-Term Business Plan 2022. We are working to build the foundation for sustainable growth through the resolution of social issues. Over the past two years, we have made progress in selecting and concentrating our businesses and optimizing our manufacturing and sales bases, and our structural reforms are in the final stages. At the same time, we are developing new products and solutions in response to the growing needs brought about by COVID-19 pandemic, such as contactless and non-face-to-face.
However, the business environment assumed at the time of the formulation of the Medium-Term Business Plan has undergone major changes due to the COVID-19 pandemic, which has lasted longer than expected, the shortage of materials, mainly semiconductors, and the rising cost of materials and transportation. Measures against supply chain impacts and strengthening risk response capabilities are urgent priorities.
Unfortunately, our performance in FY2022 is expected to fall below the medium-term target, but we will continue to build the foundation for growth while focusing on measures to reduce the impact on the supply chain issues, leading to the theme of the new medium-term business plan starting next fiscal year, "Steering toward Growth."
For 140 years since its foundation in 1881, OKI has been supporting social infrastructure and realizing safer and more convenient lives for people. We will continue this path and aim for sustainable growth together with society.
We look forward to the continued support of our shareholders and investors.