Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Investor Presentation (October 2008)
24 slides from Oki Electric Industry's investor presentation, Oct 31, 2008
Slide 1: OKI Business Strategies
OKI Business Strategies October 31, 2008 Oki Electric Industry Co., Ltd. c©Copyright ○ Copyright 2006 OkiElectric 2008 Oki Electric Industry Industry Co.,Co.,Ltd. Ltd. S OKI CONFIDENTIAL 11
Slide 2: Table of Contents
Table of Contents I. Reviewing the Mid-term Business Plan 1. Reviewing 2007 Mid-term Business Plan 2. Measures to Ensure Stable Profit in the FY end. March 2010 3. Reviewing Mid-term Business Targets II. Revising Projections of the FY end. March 2009 1. Segment Information 2. Cause of Change in Oper
Slide 3: 2007 Mid-term Business Plan: Macro Economy Environment
Reviewing 2007 Mid-term Business Plan: Macro Economy Environment World economy: Beginning with the subprime lending crisis in the U.S., world economy rapidly deteriorates ¾ U.S. and Europe: Credit crunch caused by financial crisesÎ Low consumption and economic downturnÎ Vicious cycle of sliding stoc
Slide 4: 2007 Mid-term Business Plan: OKI's Operating Environment
Reviewing 2007 Mid-term Business Plan: OKI’s Operating Environment Semiconductor: As part of selection and concentration measures, OKI spun-off the business and transferred 95% of shares to Rohm Co. Ltd. Financial: Restraint on IT investment from Japanese financial institutions due to the financial
Slide 5: 2007 Mid-term Business Plan: Business Status of FY end. 09
Reviewing 2007 Mid-term Business Plan: Business Status of FY end. 2009 Concentrate on businesses with strong profitability and track record to ensure profit with advanced products and strong customer-base - Focus on info-telecom convergence and mechatronics (ATM, printers, etc.) as business pillars
Slide 6: Mid-term Business Plan by Business: Financial
Reviewing Mid-term Business Plan by Business: Financial Enhance global deployment of mechatronics biz. and accelerate alliances • Established company to expand ATM business in China (June 2008) - Forecast shipment for FY end. March 2009: 7,300 units (to increase by 40% from previous year) - Cumulate
Slide 7: Mid-term Business Plan by Business: Information System
Reviewing Mid-term Business Plan by Business: Information System Provide systems combining OKI’s business know-how through trusted customers • Provide value-added systems by converging open technologies based on customized hardware with business know-how in each market, mechatronics and individual s
Slide 8: Mid-term Business Plan by Business: Printer
Reviewing Mid-term Business Plan by Business: Printer Enhance suitable product for SMB market • Enhance middle range products by standardizing LED engine platform • Increase net sales by enhancing product lineup for SMB market and increased unit sales volume - Enhanced product lineup for the large m
Slide 9: Mid-term Business Plan by Business: Telecom
Reviewing Mid-term Business Plan by Business: Telecom Improve profitability through business selection and concentration • Completed withdrawal from low-profit carrier equipment SI business • Shifted home network products to develop value-added equipment (new strategy) • Continue to reduce outsourci
Slide 10: Mid-term Business Plan by Business: Telecom Business Strategy
Reviewing Mid-term Business Plan by Business: Telecom Business Strategy [Market Environment] z Though telecom carriers’ investment will decline in the long run, investment is expected in edge domain in network service, such as access networks for the growth of NGN z As IP-based network evolve, new s
Slide 11: Network Service Edge Domain and OKI's Product Offerings
Network Service Edge Domain and OKI’s Product Offerings As NGN expand, the following three domains become important in carriers’ network service: A. Area to connect with users: 1.Enterprise edge 2.Consumer edge B. Area to connect with other networks: 3. Carrier edge Enterprise IMS FMC SDP The Intern
Slide 12: Business Direction for the Three Edge Domains
Business Direction for the Three Edge Domains Focus Focus and and expand expand business business in in the the three three edge edge domains domains in in network network service service :: An An area area where where investment investment is is expected expected forfor NGN NGN growth growth and an
Slide 13: Measures to Ensure Stable Profit in FY end. March 2010
Measures to Ensure Stable Profit in FY end. March 2010 Establish strong business structure to create stable profit in the rapidly changing business environment - Overhaul shared functions appropriate to new business structure after transferring shares of semiconductor business - Reexamine Group mana
Slide 14: Mid-term Business Targets
Reviewing Mid-term Business Targets Aim to achieve 2007 Mid-term Business Target with new structure after semiconductor business transfer Operating income (Billion yen) 200 (excluding semiconductor business 18.5 18.5 20.0 for FY March 2008 and 2009) 14.0 2007 Mid-term Plan 150 15.0 12.5 8.5 8.1 Revi
Slide 15: Mid-term Business Targets by Segment
Reviewing Mid-term Business Targets by Segment (billion yen) FY end. FY end. FY end. FY end. Net Sales March 2008 March 2009 March 2010 March 2011 (Actual) (Projections) (Target) (Target) Info-telecom 359.0 323.0 328.0 345.0 Financial 139.4 122.0 125.0 135.0 Telecom 73.3 67.0 68.0 72.0 Info-system 1
Slide 16: Table of contents
Table of contents I. Reviewing the Mid-term Business Plan 1. Reviewing 2007 Mid-term Business Plan 2. Measures to Ensure Stable Profit in the FY end. March 2010 3. Reviewing Mid-term Business Targets II. Revising Projections of the FY end. March 2009 1. Segment Information 2. Cause of Change in Oper
Slide 17: Revision of 1H Projections for the Fiscal Year end. March 09
Revision of 1H Projections for the Fiscal Year end. March 2009 Downward revision of 1H projections: Net sales will decline by 13.1B yen and operating loss will increase by 1.6B yen due mainly to downturn in semiconductor business Major factors of the downturn in semiconductor business: - Net sales:
Slide 18: Revision of Full Year Projections for the Fiscal Year end. March 2009
Revision of Full Year Projections for the Fiscal Year end. March 2009 Downward revision of full year projections: Net sales and operating income expected to decrease by 44.0B yen and 4.0B yen respectively, due to deteriorated semiconductor business in 1H Though sales decline for overall businesses e
Slide 19: Projections for FY end. March 2009: Info-Telecom Systems
Projections for FY end. March 2009: Info-Telecom Systems (Billion yen) Net sales [Variance to previous projections] 359.0 Net sales: Decrease by 14.0B yen 323.0 337.0 25.1 Others 25.0 Financial business: 23.0 Sales of bank branch terminals and ATMs in 121.2 Information 111.0 115.0 systems domestic a
Slide 20: Projections for FY end. March 2009: Printers
Projections for FY end. March 2009: Printers (Billion yen) Net sales [Variance to previous projections] 190.0 185.8 Net Sales: Decrease by 17.0B yen 173.0 Color NIP: 77.0 Mono NIP/ Number of shipment will remain the same 83.0 SIDM, etc. 74.0 level as previous year, though under original plan. Sales
Slide 21: Changing Factors of Operating Income
Changing Factors of Operating Income z 1H：Expect increase in profit, mainly from reducing fixed-costs z Full Year：Expect to achieve plan from reducing fixed-costs, which will balance out the decline in volume (Billion yen) 1H Full Year Previous projections (9.0) 7.0 Today’s projections (10.6) 3.0 Va
Slide 22: Revision of Projections for the FY end. March 2009: Profit and Loss
Revision of Projections for the FY end. March 2009: Profit and Loss [Summary of revision from previous projections (on Aug 14, 2008)] Net loss is expected to increase due to the following reasons: - Decrease in operating income mainly due to deteriorating semiconductor business - Extraordinary loss
Slide 23: Changing Factors of Extraordinary Profit and Loss
Changing Factors of Extraordinary Profit and Loss (Billion yen) Projections Ref. 1H Full year Q1 FY end. Mar. 09 FY end. Mar. 09 FY end. Mar. 09 Write-down of inventories (10.6) (10.6) (10.6) Loss on business transfer (*1) (5.2) (5.2) - Special retirement payments (*2) (0.4) (4.4) (0.2) Disaster los
Slide 24: Glossary
Glossary P2 FY Fiscal Year P9 SI System Integration P4 NGN Next Generation Network WiMAX Worldwide Interoperability for Microwave NIP Non-Impact Printer Access SIDM Serial Impact Dot Matrix WiFi Wireless Fidelity P5 ATM Automated Teller Machine GE-PON Gigabit Ethernet Passive Optical Network P6 LCM
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