Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Investor Presentation (February 2010)
23 slides from Oki Electric Industry's investor presentation, Feb 16, 2010
Slide 1: OKI Business Strategies - Mid-term business plan
OKI Business Strategies - Mid-term business plan - February 16, 2010 Oki Electric Industry Co., Ltd. ・The projections and plans in this material are subject to change depending upon the changes of business environments and other conditions. © Copyright 20１０ Oki Electric Industry Co., Ltd.
Slide 2: Contents
Contents 1. Corporate strategies for the mid-term business plan 2. Mid-term business targets 3. Changes in business structure 4. Sales and profits plan 5. Initiatives to expand sales 6. Initiatives to enhance profitability 7. Balance sheet targets c©Copyright ○ Copyright 2006 Oki Electric 20１０ Oki E
Slide 3: Corporate strategies for the mid-term business plan
1. Corporate strategies for the mid-term business plan OKI provides products and services to contribute to the development of the information society. Joint efforts by sales and marketing, technology development, production, and maintenance OKI aims to become a company that makes steady growth by ge
Slide 4: Mid-term business targets
2. Mid-term business targets Mid-term business target (FY end. March 31,2013) Net sales:500.0B yen Operating income:18.0 B yen FY end. March FY end. March 31,2010 31,2013 Main measures (projections) (plan) Net sales 456.0 B yen - Increase sales in focusing 500.0 B yen business domains Operating 14.0
Slide 5: Changes in business structure
3.1 Changes in business structure Enhance business profitability by changing business management units Maximize profitability with consolidated groups by changing to business management based on products Clarify business responsibility by matching business management and organization FY end. March 3
Slide 6: Business segment profile
3.2 Business segment profile Biz. segment Biz. outline Main products Bank branch systems, various Business offering solutions and services utilizing core Solutions & business systems, personnel and know-how, cultivated by business systems for finance, services salary systems, ATM monitoring traffic
Slide 7: Business segment and organizational structure
3.3 Business segment and organizational structure New Sales and marketing division New New Business Business Business OKI division division division Data Business Business division division Production division Solutions Social Telecom Mechatronics EMS Printers ＆services infrastructure systems system
Slide 8: Business expansion: aim for 500.0 B yen sales
4.1 Business expansion Aim for 500.0 B yen sales in FY ending March 31,2013 Sales:500.0 B yen Expand business as the Sales:456.0B yen +20.0 B yen world top vendor in ls onn ic ic ss sskkiil ls mechatronics haattrro Mechatronics Meecch M systems Expand business by enhancing r i” i” sskkiilllss +10.0
Slide 9: Enhance profitability
4.2 Enhance profitability Business segment: FY FY Operating income end.Mar.31, end.Mar.31 (Billion yen) 2010 2013 (projection) (Plan) With consolidation and total optimization in view, implement Solutions & services measures for reducing costs and Telecom systems 12.0 15.0 establish a solid business
Slide 10: Expand mechatronics systems business - ATM
5.1 Expand mechatronics systems business - ATM - Enhance overseas business focusing on the Chinese market as well as expanding domestic market share steadily. FY end.Mar.31,2010 FY end.Mar.31,2013 Sales projection: 40.0 B yen Sales plan: 50.0 B yen* * Excludes maintenance service [Domestic market]
Slide 11: Expand mechatronics systems biz. - cash handling equipments
5.2 Expand mechatronics systems biz.- cash handling equipments - Integrate marketing functions, develop and deploy products adapting to business categories, based on elemental technologies established with ATMs FY end.Mar.31,2010 FY end. Mar.31,2013 Sales projection:3.0 B yen Sales plan: 11.0 B yen
Slide 12: Printer business - shift business structure
5.3 Printer business - shift business structure Shift to a MFP/SFP-driven profitability business structure FY end.Mar.31,2010 FY end. Mar.31,2013 sales projection:150.0 B yen Sales plan : 160.0 B yen SIDM: shrunk market Products strategies Developed countries : - Expand MFP products lineup -Modes
Slide 13: Enhance service business
5.4 Enhance service business Increase proportion of stock-type businesses, aiming to generate stable income Leveraging on OKI’s strength, expand businesses based on the existing maintenance/operation services Respond to changes in needs, from possession to usage. Focus on service business by establi
Slide 14: Expand EMS business
5.5 Expand EMS business Focus and expand EMS business by positioning it as one of OKI’s pillars ⇒ Consolidate EMS businesses within the OKI Group and plan to extend high-end type EMS business FY end.Mar.31,2010 FY end. Mar.31,2013 sales projection:25.0 B yen Sales plan : 35.0 B yen Factories and Gro
Slide 15: Telecom systems business - selection and concentration
5.6 Telecom systems business - selection and concentration - Enhance profitability of telecom systems biz. by selection and concentration Carrier telecom systems biz. – secure profitability by selection and concentration Enterprise telecom systems biz. – increase share by expanding product lineup an
Slide 16: Enhance Enterprise NW systems business
5.7 Enhance Enterprise NW systems business Aim of making OKI Wintech a wholly-owned subsidiary Enforce a further Group management and promote an agile network systems business Enhance sales/maintenance framework for enterprise network system business Offer one-stop service for network over its
Slide 17: Promote energy and environment related businesses
5.8 Promote energy and environment related businesses Chemical substances in products management systems business Provide packaged information on chemical substances management and data collection system, originally designed for the OKI Group, to unaffiliated customers, which includes consulting S
Slide 18: Reorganize Group companies
6.1 Reorganize Group companies Reorganize group companies aiming for a maximized profitability under consolidated management Previously Future strategies Revise roles of OKI and Group Dispersed Group companies according to companies markets and functions Incorporate core process of businesses a
Slide 19: Efficient indirect operation by shared service
6.2 Efficient indirect operation by shared service Standardize all Group indirect operation processes and reduce management cost by 20% Previously Future strategies Adopting the existing Establish shared service company for the shared service is part of OKI Group the Group Expand the scope of exi
Slide 20: Enforce Group procurement functions
6.3 Enforce Group procurement functions Enforce Group procurement with consolidated procurement functions and plan a further procurement cost reduction Previously Future strategies Each Group company Group procurement Set up a Group procurement division deploy individually - Expand efforts made at
Slide 21: Enhance productivity
6.4 Enhance productivity Enhance profitability in software Executed revamping all Group software divisions from FY end. March 31, 2010 Revamping measures Consolidate common indirect divisions in software Eliminate and streamline duplicate operations Unified project operation with Group companies Enh
Slide 22: Balance sheet targets
7. Balance sheet targets Strengthen balance sheet by generating free-cash-flows brought by accrued stable profits and improved working capital, under the aforementioned corporate strategies through to FY end. March 31, 2013 3- year FCF target 30.0 B yen FY end. March 31, 2013 net debt equity ratio
Slide 23: Glossary
Glossary P4 FY Fiscal Year P13 JBO Japan Business Operations Co., Ltd. P5 EMS Electronics Manufacturing Service P15 NW Network P6 ATM Automated Teller Machine OWT Oki Wintech Co., Ltd. LCM Life Cycle Management P16 SMB Small Medium Business IP Internet Protocol P17 DSP Digital Signal Processing IP-P
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