Oki 2010 Annual Report Download - page 10
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(Billions of yen)
Target of Net Sales and
Operating Income
300
400
200
100
0
50
(Billions of yen)
30
40
20
10
0
2010 2013
(Plan)
Net Sales (left scale)
Operating Income (right scale)
(Ended March 31)
6Annual Report 2010
SPECIAL FEATURE: MID-TERM BUSINESS PLAN
Targeting ¥500.0 billion in net sales through revamping
its business structure and enhanced profitability
The mid-term business plan sets out two corporate strategies: (1) integrate sales and
marketing, technology development, production, and maintenance activities in order
to provide products and services that contribute to the development of information
society; and (2) aim to become a company that makes steady growth by generating
profit stably. We formulated the plan on the premise that demand-related conditions
will be very challenging in the year ending March 2013, the plan’s final year. Under
these circumstances, the plan’s main focus is to create a structure capable of gener-
ating stable profit.
To achieve this goal, OKI is implementing the following four initiatives. First, to
maximize earnings of the entire Group, we will shift to a consolidated group manage-
ment. Second, we will enhance our “monozukuri” (manufacturing), centering on our
world-leading mechatronics technologies, as well as our info-telecom technologies
amassed throughout our 129-year history. Third, we will strive to increase the per-
centage of stock businesses, centering on fee-based businesses generated by
provision of products and services—with the aim of increasing fixed income gener-
ated from fees, to supplement our flow businesses based on product clearances.
Finally, to become a steady-growth company that is indispensable to society, we will
actively develop new businesses based on OKI’s unique technologies. By imple-
menting these measures, we will attain our net sales and operating income targets.
At the same time, by generating free cash flows of ¥30.0 billion over the three-year
period of the plan, we are targeting a net debt-to-equity ratio of 1.3 times by the year
ending March 2013.
Please tell us about the targets and strategies of the mid-term business
plan introduced in April 2010.
OKI will generate stable profit by integrating its sales and marketing, technology
development, production, and maintenance activities. The plan’s target is to achieve
¥500.0 billion in consolidated net sales and ¥18.0 billion in operating income in the year
ending March 31, 2013, the final year of the plan.
Q
A
Net Sales FY2012 (ending March 2013) ¥500.0 billion
Operating Income FY2012 (ending March 2013) ¥18.0 billion
Free Cash Flow 3 years ¥30.0 billion
Net Debt/Equity Ratio FY2012 (ending March 2013) 1.3 times