Oki 2001 Annual Report Download - page 9

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Oki Electric Industry Co., Ltd. Annual Report 2001 7
business-to-business (B2B) and business-to-consumer
(B2C), and information exchange using IP networks.
Our network infrastructure services offer optical technol-
ogy to carriers to construct broadband IP networks and
systems using IP network technology.
Companies Supporting Network Solutions
Oki Data is planning global business development focused
on color page printers with the world’s fastest printing
speed.
SiSC focuses on system LSIs for mobile information
devices in the digital communication age, and DRAM for
uses other than system memory or PC memory.
OCC is responding to the expanding market for optical
access networks in the North American wavelength division
Oki Electric Industry Co., Ltd. Annual Report 2001 7
multiplexing (WDM) market by offering optical devices
and modules such as GaAs semiconductors.
Q. The Phoenix 21 Sky-High plan aims for a 6%
increase in net sales. Isn’t this lower than the
expected growth in the information and
telecommunications industry?
A. We expect to exceed market growth in our priority
business areas, but we are withdrawing from businesses for
which we do not predict profitability. As a result, overall
growth will be 6%. Economic value added (Oki EVA) and
free cash flows (FCF) will be used as the indicators for
Phoenix 21 Sky-High’s goals.
Negative
Profitability
Growth
potential
Positive
Businesses
requiring
review
New
businesses
Mature
businesses
Growing
businesses
Benchmark levels—
Profitability: 5.5%; Growth potential: 0%
Existing businesses
New businesses
Maintain/enforce profitability
Generate positive FCF
Deliver growth potential
Target date for achieving profitability
Oki EVA: positive
FCF: positive
Preconditions Hurdles
Annual sales growth rate: 20%
Oki EVA: Surplus over three years