Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Q3 FY Mar. 2007 Earnings Presentation
23 slides from Oki Electric Industry's earnings presentation, Feb 15, 2007
Slide 1: Financial Results for the 3rd Quarter of Fiscal Year ending Mar. 31, 2007
Financial Results for the 3rd Quarter of Fiscal Year ending Mar. 31, 2007 Feb. 15, 2007 Oki Electric Industry Co., Ltd. © Copyright 2007 Oki Electric Industry Co., Ltd.
Slide 2: Table of Contents
Table of Contents 1. Revision of Full Year Projections for the FY Mar. 2007 1) Revision of Net Sales and Operating Income 2) Segment Information 3) Profit and Loss Projections 2. Outline of Q3 Results 1) Q3 Profit and Loss 2) Q3 Segment Information 3. Revamp Business Structure to Enhance Profitabili
Slide 3: 1-1) Full Year: Revision of Net Sales and Operating Income
1-1) Full Year: Revision of Net Sales and Operating Income Net sales is 720.0 B yen, decreases by 10.0. While increase in Printer sales, sharp decline in sales for Info-telecom Systems Operating loss is expected to be 6.0 B yen due to sales decrease by changes in operating environment and delay in c
Slide 4: 1-2) Full Year: Segment Information: Info-telecom Systems
1-2) Full Year: Segment Information: Info-telecom Systems <Difference from previous projections> (Billion yen) Net sales Net sales 370.0 355.0 Sales for telecom carriers decreases by 11.0 338.0 29.0 Others 35.0 B yen due to decline and postponement in 18.5 70.0 carriers’ investment and delay in prod
Slide 5: 1-2) Full Year: Segment Information: Semiconductors
1-2) Full Year: Segment Information: Semiconductors <Difference from previous projections> (Billion yen) Net sales Net sales 150.7 154.0 150.0 Optical 3.0 3.0 3.0 components Increase in sales of P2ROM for the 18.7 23.0 23.0 Foundry amusement market 36.5 39.0 41.0 Decrease in sales for driver LSIs du
Slide 6: 1-2) Full Year: Segment Information: Printers
1-2) Full Year: Segment Information: Printers <Difference from previous projections> (Billion yen) Net sales Net sales Excluding the currency exchange impact, sales 172.0 180.0 of both units and consumables for color NIP 160.5 decrease due to delay in shift to mid/high-end Mono NIP, models 70.0 78.0
Slide 7: 1-3) Full Year: Profit and Loss Projections
1-3) Full Year: Profit and Loss Projections (Billion yen) FY Mar. 07 Proj. FY Mar. 06 Oct. 26 Feb. 15 Net income Net sales 730.0 720.0 680.5 - 18.0 B yen of loss in income Operating income 15.0 (6.0) 10.6 before tax Other income (7.0) (8.0) (3.4) - 38.0 B yen of net loss, including 18.0 B yen of rev
Slide 8: Table of Contents
Table of Contents 1. Revision of Full Year Projections for the FY Mar. 2007 1) Revision of Net Sales and Operating Income 2) Segment Information 3) Profit and Loss Projections 2. Outline of Q3 Results 1) Q3 Profit and Loss 2) Q3 Segment Information 3. Revamp of Business Structure for Enhancing Profi
Slide 9: 2-1) Q3 Profit and Loss
2-1) Q3 Profit and Loss (Billion yen) 9 months 9 months Net sales increased by 11.1 B yen FY Mar. 06 FY Mar. 07 on a year-on-year basis Net sales 465.3 476.4 Operating income worsened by 6.9 Cost of sales 357.8 372.9 B yen due to increase in cost of SG&A 113.4 116.3 sales (78.3%, increasing 1.4 poin
Slide 10: 2-2) Q3 Segment Information
2-2) Q3 Segment Information Info-telecom - Increased sales for security-enhanced ATM, counter terminals for post offices 9 months 9 months (Billion yen) - Decreased sales for telecom carriers FY Mar. 06 FY Mar. 07 due to decline in carriers’ investment on Info-telecom Sales 218.8 215.8 fixed network
Slide 11: Table of Contents
Table of Contents 1. Revision of Full Year Projections for the FY Mar. 2007 2. Outline of Q3 Results 3. Revamp Business Structure to Enhance Profitability 1) Business Challenges 2) Measures to Enhance Profitability i. Accelerating Selection and Concentration of Businesses ii. Developing Strong Busin
Slide 12: Segment Status and Directions for the Full Fiscal Year
Segment Status and Directions for the Full Fiscal Year Segment Issues Directions Scattered resources Redefining biz domain Info-telecom Delay in shifting business style Enhance int’l biz/ Accelerate alliances Curtailed customer investment Merge divisions (market-based + ATM Financial Declined produc
Slide 13: Ubiquitous Service: Impartial Individualization
Ubiquitous Service: Impartial Individualization Impartial Impartial Individualized Individualized service service information information resource resource Access individualized information Access desired individualized service (i.e. global information, database at fingertips via communication conte
Slide 14: 3-1) Business Challenges
3-1) Business Challenges Factors of weakened profitability OKI is taking the right business direction: Provide products indispensable for “Ubiquitous Services” through a proposal-oriented approach Development of info-telecom converged technologies and products, which is the base for OKI’s business d
Slide 15: 3-1) Business Challenges and Factor Analyses
3-1) Business Challenges and Factor Analyses OKI’s responsible issues Delay in revamping biz structure/ Insufficient selection and concentration of businesses Sharp decline in earning capability of existing businesses beyond expectation Delay in expanding new businesses and planning/developing
Slide 16: 3-2) Measures to Enhance Profitability
3-2) Measures to Enhance Profitability OKI’s Growth Strategy and Enhancing its Business Foundation Continue to revamp business structure to improve profitability Develop strong businesses based on strong products unique to OKI Create strong products unique to OKI: Accurately understand trends/ Str
Slide 17: 3-2): Measures to Enhance Profitability
3-2): Measures to Enhance Profitability Basic measures to enhance profitability by revamping business structure Innovating Innovatingfrom fromthe theChinese ChineseCharacter CharacterOki Oki(( ))to toOKI OKI Measure Measure11 Accelerating AcceleratingSelection Selectionand andConcentration Concentra
Slide 18: 3-2): (1) Accelerating Selection and Concentration of Biz (1/2)
3-2): (1) Accelerating Selection and Concentration of Biz (1/2) Accelerate Acceleratebusiness businessselection selectionand andconcentration concentrationas asthe theinitiative initiativestep stepto torevamp revamp business structure business structure Shift Shiftresources resourcestotofocusing foc
Slide 19: 3-2): (1) Accelerating Selection and Concentration of Biz (2/2)
3-2): (1) Accelerating Selection and Concentration of Biz (2/2) Start Startnew newbusinesses businessesindependent independentfromfromexisting existingbusinesses businesses and andshift shiftresources resources Operate Operateflexible flexibleorganization organizationthat thatmatches matcheseacheach
Slide 20: 3-2): (2) Developing Strong Business Based on Strong Products
3-2): (2) Developing Strong Business Based on Strong Products --Create Createstrong strongproducts productsto toprovide provideUbiquitous UbiquitousServices Services --Strengthen StrengthenOKI’s OKI’stechnology technologyin: in: Info-telecom Info-telecomconvergence convergence++Mechatronics Mechatro
Slide 21: Ubiquitous Service Layer and OKI's Approach
Ubiquitous Service Layer and OKI’s Approach Provide Provide systems systems efficiently efficiently by by clarifying clarifying layers layers for for Ubiquitous Ubiquitous Service Service technologies technologies andand products products Business Business operation operation Ubiquitous Services Eac
Slide 22: 3-2): (3) More Efficient Management Style
3-2): (3) More Efficient Management Style Shift Info-telecom operation to become more autonomous and efficient Accelerate shift to a proposal-oriented approach: Establish dedicated divisions for marketing and product planning Enhance resources Downsizing in-direct planning divisions and shift
Slide 23: Glossary
Glossary P4 IP-PBX Internet Protocol- Private Branch Exchange P5 P2ROM Production Programmed Read Only Memory AS Application Specific LSI Large Scale Integration P6 NIP Non-Impact Printer SIDM Serial Impact Dot Matrix P10 ATM Automated Teller Machine LCD Liquid Crystal Display P12 OEM Original Equip
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