Oki 2011 Annual Report Download - page 7

600
(Billions of yen)
(Ended March 31)
500
400
300
200
100
0
Net Sales*
2008 2009 2010 2011 2012
(est.)
581.5 491.6
443.9 432.7 436.0
18
(Billions of yen)
(Ended March 31)
15
12
9
6
3
0
Operating Income*
2008 2009 2010 2011 2012
(est.)
2.4
5.6
14.0
11.0
15.0
*Excluding the semiconductor business
What are your thoughts on the OKI Group’s performance in fiscal year 2010,
and what are your targets for fiscal year 2011?
In fiscal year 2010, we posted year-on-year declines in both sales and profits,
due to stagnant public sector demand and other factors. Nevertheless,
we were able to establish solid management bases to underpin future business growth.
Annual Report 2011 5
INTERVIEW WITH THE PRESIDENT:
TOWARD FUTURE GROWTH
We will steadily implement growth strategies,
while further enhancing our management bases.
Q
A
In fiscal year 2010, the OKI Group reorganized its business
structure and integrated some Group companies. We also
implemented the program for the enhancement of our man-
agement bases. In these ways, we worked to establish solid
management bases to underpin future business growth.
Consolidated net sales for the year amounted to ¥432.7
billion, down ¥11.2 billion from the previous fiscal year. The
decline stemmed from several factors, including a changeover
in large-scale replacement projects for some public sector
agencies, the appreciation of the yen, delayed economic
recovery in some parts of Europe, and the impact of the
Great East Japan Earthquake.
Despite efforts to improve profitability, which included fur-
ther reductions in operating expenses and a reassessment of
fixed costs, operating income decreased ¥3.0 billion to ¥11.0
billion, due mainly to the negative impact of the yen’s apprecia-
tion, falling sales prices, higher sales costs, optimization of
treatment plans, and the earthquake. The Group posted a net
loss of ¥27.0 billion, compared with net income of ¥3.6 billion
in the previous fiscal year. This was due mainly to strategic allo-
cation of expenditures to enhance our management bases.
While placing highest priority on ensuring stable, continu-
ous returns to shareholders, OKI is working hard to improve
profitability. In fiscal year 2010, however, we posted a major
net loss. Due also to the fact that we have not yet finished
building a financial base to allow stable dividend payments,
we have decided to forego payment of cash dividends for
fiscal year 2010.
In the year ahead, we will draw on the management
bases built in fiscal year 2010 to implement growth-oriented
strategies, with the aim of making fiscal year 2011 the year
for expediting efforts to lay the groundwork for robust profit
generation and growth.
For this fiscal year, we forecast an increase in consolidated
net sales, to ¥436.0 billion. This will be achieved through the
expansion of our services business, growth in demand for
upgrading and replacement of social infrastructure systems,
increased sales of ATMs in Japan and China, and growth in
our EMS business. We forecast operating income of ¥15.0 bil-
lion, to be attained through rigorous cost-reduction efforts and
the revamping of our business structure, with the aim of gen-
erating stable profits, which should compensate for the
negative impact of the optimization of our treatment plans.
We forecast net income of ¥7.5 billion, to be achieved through
an increase in operating income, as well as an improvement in
non-operating income/expenses and a major improvement in
extraordinary income/loss.