Oki Electric Industry Company, Limited · TSE:6703
Oki Electric Industry — Investor Presentation (March 2013)
21 slides from Oki Electric Industry's investor presentation, Mar 28, 2013
Slide 1: OKI Business Strategies - Printer business
OKI Business Strategies - Printer business - March 28, 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.
Slide 2: Table of Contents
Table of Contents 1. Printer Business in the OKI Group Hideichi Kawasaki, OKI President, Representative Director Business condition of the OKI group Positioning for Printer business Policy for revamping Printer business 2. Printer Business Strategies Takao Hiramoto, OKI Senior Vice President a
Slide 3: Printer Business in the OKI Group
Printer Business in the OKI Group Hideichi Kawasaki OKI President, Representative Director ● Business condition of the OKI group ● Positioning of Printer business ● Policy for revamping Printer business © Copyright 2013 Oki Electric Industry Co., Ltd. 3
Slide 4: Business condition of the OKI group
Business condition of the OKI group Info-telecom, EMS, and Others: Profitability improved due to the steady progress of structural reform and business expansion. ⇒ OKI expects continuous growth in FY 2013. Printer business: Profitability worsened due to the delay in responding to environmental chang
Slide 5: Positioning of Printer business
Positioning of Printer business ■ OKI’s persistence Provide customer value treasuring human interface ⇒ Printers are important products for delivering OKI’s solutions ■ Vanguard for global deployment Build longstanding favorable relationship with good customers around the world ⇒ The bridgehead in o
Slide 6: Policy for revamping Printer business
Policy for revamping Printer business Shift to a Printer business structure focusing on securing profit Revamp structure to generate stable profits Establish a business structure which can achieve surplus even when sales level is as the same in FY2012 Maximize profitability by redefining strateg
Slide 7: Printer Business Strategies
Printer Business Strategies Takao Hiramoto OKI Senior Vice President and Member of the Board OKI Data President, Representative Director ● Trend of financial results and projections ● Mid-term business policy and targets ● Measures for the enhancement of management base ● Scenario for business growt
Slide 8: Printer business trend of financial results and projections
Printer business trend of financial results and projections Profitability declined significantly as structural reform could not catch up with the fall in net sales. Impact of the Thai flooding in FY2011 was recovered by offensive sales approach for sales increase in FY2012. Inappropriate accounting
Slide 9: Printer business FY2012 projection
Printer business FY2012 projection Operating loss of - 9.5 B yen projected for FY2012 due to impact of Spain etc. Operating income excluding exceptional factors is - 1.0 B yen. ■Operating income projection Excluding FY2012 (projection) exceptional factors - 1.0 2.0 Expenses for recovery from FY11 Th
Slide 10: Printer Business Mid-term business policy and targets
Printer Business Mid-term business policy and targets ■Mid-term Business Policy Complete structural reform and regenerate Printers as OKI’s core business ■Business Targets Reference (Billion yen) FY2012 FY2013 FY2014 FY2015 (projections) Net sales 115.0 120.0 130.0 110.0 Operating income +4.0 +7.0 +
Slide 11: Enhance management base [reduce fixed costs]
Enhance management base 1 [reduce fixed costs] FY2012 FY2012 : Record ★Cease sales activities of Spanish sales office extraordinary loss: 4.3 B (* Resolution of board of directors on March 28, 2013) yen FY2013 Reduce indirect fixed costs FY2013: Expected costs to enhance management ★ Sales: Reform S
Slide 12: Enhance management base [enforce Monozukuri through design and procurement reform]
Enhance management base 2 [enforce “Monozukuri” through design and procurement reform] Improvement Reduction : 2.0 B yen/year target: ・ 5%/year (reduction of materials) ・ 30% improvement in engineering efficiency [Standardize engine platforms] [Shorten development TAT] Number of printer Development
Slide 13: Enhance management base [strengthen management style]
Enhance management base 3 [strengthen management style] Introduce division system based on products and clarify responsibility of profit and loss, QCD, as well as inventory. Enhance governance and reduce costs through horizontal management by functions. Division system Enhance horizontal management
Slide 14: FY2013 Operating income target
FY2013 Operating income target FY2013 target : 4.0 B yen Operating income End of FY2013 target : A structure to generate 5% operating income ratio Management base enforcement New products, growing New products market segments 0.5 FY12 consumables increase due to impact 1.5 of offensive sales 4.0 Red
Slide 15: Scenario for business growth
Scenario for business growth - FY13/FY14: Launch new products to the A4 MFP market where growth is significant - FY13/FY15: Launch new products to the professional market such as on-demand printing Profit model High speed/industrial FY15 strategic product: FY15 strategic product: (offset printing) N
Slide 16: Office solution market: competitive strategy
[Office solution market: competitive strategy] Provide solutions with advantages of low TCO and flexibility in selecting applications Copier MFP Open App collaboration Cloud Maintenance Unique App ＋ fixed cost software Open API ISV partners Closed Closed API API Application server Maintenance Mainte
Slide 17: Growth strategy: Office print market sales strategies
Growth strategy [1.Office print market: sales strategies (existing business)] Maximize profitability by redefining products and sales strategies Market size: 3 trillion yen ■ Product Strategy MFP: CAGR +14% SFP: CAGR -7% Reinforce product capability of compact and high-performing MFP Strengthen
Slide 18: Growth strategy: Office solution market sales strategies
Growth strategy [2.Office solution market: sales strategies] Develop MFP-based solutions by enabling collaboration between strategic products and applications Market size : 4 trillion yen, CAGR: - 0.5% WW copier market Solutions market New FY13 strategic product OKI ISV Collaborate with OKI’s soluti
Slide 19: Growth strategy: Professional market sales strategies
Growth strategy [3. Professional market: sales strategies] Replace expensive commercial printing machines with high value-added printers leveraging LED characteristics Market size : 1.5 trillion yen, CAGR: + 6% Unique color printing Scalable LED print head New Color proofing/signage/unique Large POP
Slide 20: Complete revamping structure and regenerate Printers as core business
Complete revamping structure and regenerate Printers as one of OKI’s core business End of FY2013: Achieve a structure to generate 5% operating income ratio FY2015: 10.0 B yen (8%) operating income FY2015 Mgmt base enforcement New products, growing FY2014 10.0 market segments 2.5 0.5 FY2013 1.5 1.5 1
Slide 21: © Copyright 2013 Oki Electric Industry Co., Ltd.
© Copyright 2013 Oki Electric Industry Co., Ltd. 21
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