Oki Electric Industry Company, Limited · TSE:6703

Oki Electric Industry — Investor Presentation (November 2013)

20 slides from Oki Electric Industry's investor presentation, Nov 12, 2013

  1. Slide 1: Mid-term Business Plan 2016

    “ Mid-term Business Plan 2016 ” FY2014 ~ FY2016 November 12, 2013 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 2013 Oki Electric Industry Co., Ltd.

  2. Slide 2: Contents

    Contents © Copyright 2013 Oki Electric Industry Co., Ltd. 2

  3. Slide 3: 1. Mid-term Business Plan 2013 Summary

    1. “ Mid-term Business Plan 2013 ” Summary FY2011 ~ FY2013 1. Summary of the whole group 2. Summary of program for the enhancement of management base 3. Summary of program for growth © Copyright 2013 Oki Electric Industry Co., Ltd.

  4. Slide 4: 1. Summary of the whole group

    1. Summary of the whole group  OKI projects achieving the business targets, excluding net sales.  Resumption of dividend (3 yen) in FY2013 is planned. < Program for the enhancement of management base > < Program for growth > Achieved reducing costs drastically as Net sales unreached its target by

  5. Slide 5: 2. Summary of program for the enhancement of management base

    2.Summary of program for the enhancement of management base  Planned measures were accomplished. Cost reduction Compared to FY09 (billion yen) FY13(Proj.) FY13(Biz.target)  Expect to reduce more than 20.0 Revised retirement benefit 3.5 3.5 scheme B yen (planned value) from the Assignment of approp

  6. Slide 6: 3. Summary of program for growth

    3. Summary of program for growth  Growth of ATM in China exceeded our plan. Main results Sales FY10 FY13(Proj.)  Grew ATM in China as our core biz. Mechatronics sys. 63.3 B yen ⇒ 88.0 B yen (Annual shipments of ATM in China 11,800 units → 32,000units  Acquired demands for systems for fire fightin

  7. Slide 7: 2. Overview of Mid-term Business Plan 2016

    2. Overview of “ Mid-term Business Plan 2016 ” FY2014 ~ FY2016 1. OKI’s goal 2. Business environment 3. Corporate policy 4. Financial targets 5. Management strategies © Copyright 2013 Oki Electric Industry Co., Ltd.

  8. Slide 8: 1. OKI's goal and positioning of Mid-term Business Plan 16

    1. OKI’s goal and positioning of “ Mid-term Business Plan 2016 ” OKI’s goal To be a high-value added creation business group, contributing to the realization of safe and comfortable society. Mid-term Business Plan 2016 Group’s business plan with milestones to reach the “ goal ” in FY2016. Corporate

  9. Slide 9: 2. Business environment

    2. Business environment  Business environment is brisk for OKI.  Key is to create business opportunities in growth areas. Emerging countries Developed countries Japan Biz. environment  Expand customers’ ICT investment and Population growth Low birth rate and longevity Policy utilization of BPO fo

  10. Slide 10: 3. Corporate policy

    3. Corporate policy Corporate policy Realize sustainable growth through continuous investment by securing stable profitability Secure stable profitability Realize sustainable growth Support future sustainable To be a company that grows growth by holding a lean sustainably by concentrating business s

  11. Slide 11: 4. Financial targets

    4. Financial targets Financial targets ●Operating profit margin ●Shareholders’ equity ratio ●Debt equity ratio 6% More than 30% Less than 1.0 times Original plan Premise of currency exchange rate ¥95/$ ¥125/€ FY13(Proj.) FY16(biz.target) Net sales 480.0 B yen 560.0 B yen overseas sales 147.0 B yen 2

  12. Slide 12: 4. Financial targets (Plan of each segment)

    4. Financial targets (Plan of each segment)  Net sales is expected to increase by 80.0 B yen mainly in overseas.  Operating income is expected to increase by 10.0 B yen mainly in Info- telecom systems and Printers. (billion yen) Net sales Operating income 560.0 480.0 46.0 Develop Developnew newmar

  13. Slide 13: 5. Management strategy (Business strategies)

    5. Management strategy (Business strategies)  Increase share in brisk biz. environment / Secure renewal demand and maximize profitability  Strengthen biz. overseas and enter domain of next- generation social infrastructure Mechatronics Mechatronics Printers Printers Realize sustainable growth EXaa

  14. Slide 14: 5. Management strategy (Changing factors of operating income)

    5. Management strategy (Changing factors of operating income) Billion yen Secure stable profitability Realize sustainable growth +3.0 Effects of +2.0 increasing Effects of Printer sales in areas +5.0 biz. structure (10.0) +10.0 of specialty reform Effects of - New markets for ATM increasing - New pr

  15. Slide 15: 5. Management strategy (Overseas strategies)

    5. Management strategy (Overseas strategies)  Expand mainly in ATMs and Printers. Target 73.0 billion yen overseas net sales. Overseas net sales plan Profit model Professional market Office solution market 1.5 trillion yen 220.0 (overseas sales ratio) Net sales (billion yen) (copiers) 4.0 trillion

  16. Slide 16: 5. Management strategy (Enter the field of next generation social infrastructure)

    5. Management strategy (Enter the field of next generation social infrastructure)  Enter business that provides establishment of ICT system/operation/monitoring/maintenance service leveraging OKI’s strengths for the field of next generation social infrastructure which is becoming more important Evo

  17. Slide 17: 5. Management strategy (Focus points)

    5. Management strategy (Focus points)  Invest proactively in growth areas and reassign human resource  Reinforce cash-generating capability Secure stable profits Realize continuous growth (billion yen) Respond to price fall/market changes Enforce R&D 55.0 3 yr cumulative cost reduction [10.0 B y

  18. Slide 18: 5. Management strategy (Financial strategy)

    5. Management strategy (Financial strategy)  Enhance financial foundation by securing profits and reducing working capital  Promote conversion of preferred stock to common stock Cash flows plan Financial foundation (FY14-16 3 yrs cumulative) Debt/capital (billion yen) Capital Investment/ 1.5 times

  19. Slide 19: Conclusion

    Conclusion to become a high-value added creation group, contributing to the realization of safe Change mode to “stable and comfortable society profitability/continuous growth” Mid-term business plan 2016 [Stable profitability/sustainable growth] Maximize profitability with fundamental business/maxim

  20. Slide 20: © Copyright 2013 Oki Electric Industry Co., Ltd.

    © Copyright 2013 Oki Electric Industry Co., Ltd. 20

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