Oki 2005 Annual Report Download - page 6

A Message from the President
robust networks, and systems that make use of biometric
technologies. Another focus is the supply of systems that facilitate
the rapid set-up of temporary ad-hoc networks after earthquakes
and other disasters.
In the Info-Telecom Systems area, we have established in-
house solutions companies for four markets: financial institutions,
telecom carriers, the public sector and the enterprise sector. Our
aim is to strengthen our market access further by establishing
systems that allow us to provide a one-stop response to
customer needs. We have also established products companies in
each of product and technology segments to support the planning
and development of highly competitive products based on our
key technologies.
Semiconductors
We are building a sustainable income structure for our
semiconductor business, which we see as an area with further
growth potential. We will continue to operate under our unique
“fab-free” structure based on the flexible use of in-house and
partner fabrications. Our aim is to maintain a business structure
that is not vulnerable to demand fluctuations.
We will also continue to concentrate our management
resources into the personal and mobile markets as an area that
offers opportunities to take advantage of our unique technologies.
These include systems technologies such as telecommunications
and sound generators, as well as technologies relating to ultra-low
power consumption, and high-voltage and high-density packaging.
Specifically, this strategy is aimed at balanced business
development through the supply of unique products targeted
toward the telecommunications, information appliance and in-
vehicle markets, in the three product segments of system LSIs,
logic LSIs and system memories.
Because of growth in demand for LCD*6 televisions and other
products, we see particular merits in an increased emphasis on
the area of driver LSIs, which are a type of logic LSI. In March
2005, we acquired the large TFT LCD driver LSI business of
Texas Instruments Japan Ltd. By combining the technologies and
product development capabilities of Oki and Texas Instruments
Japan, and using the synergies resulting from a strengthened
product line-up, we aim to become the world leader in this field.
With turnaround times as short as one day, our original
P2ROM™*7, a system memory product, has gained an excellent
reputation in the market. We will work to develop new
applications that take advantage of its security benefits, which
cannot be rewritten.
Printers
In the intensely competitive printer market, we are pursuing a
“value positioning” strategy based on the ability of our color LED
printers, which combine compact designs with high-speed, high-
resolution printing performance, to overcome price-based
competition. As a full-line printer vendor with a wide product
range to meet every business need, we aim to achieve further
growth in our global market share by strengthening our
development, production and marketing structure, and by
focusing our efforts on offering solutions that include product
customization to meet market needs and technical services.
Demand for SIDM printers also remains strong. We will continue
to strengthen our business base in this area through investment in
growth markets, especially China and Eastern Europe.
To reflect the rapid and drastic changes of today’s world, our
growth strategies are embodied in a new two-year management
plan covering the period to the year ending March 2007. Our
medium-term numerical targets for that year are consolidated net
sales of 760 billion yen, operating income of at least 40 billion yen,
net income of at least 20 billion yen, ROE of 13% or higher, and a
D/E ratio (net) of 1.1 or lower.
By working steadily toward the achievement of these goals, we
will strengthen our fundamentals as an excellent growing
company. We also aim to achieve a dramatic increase in our
worldwide recognition as a global enterprise. Our long-term
target is to increase our overseas sales ratio from around 30% at
present to 50% by the year ending March 2011. We will work
under our new three-segment structure to propagate Oki’s
international brand image as a strong enterprise with a global
presence.
We are aware that our evolution as a global enterprise will also
bring increased social responsibilities. We place considerable
importance on measures to enhance management fairness and
transparency, clarify decision-making processes, and ensure total
compliance with laws and regulations. Our efforts to strengthen
corporate governance have included the introduction of an
executive officer system and external director system, and the
establishment of various committees.
In the year ended March 2005 we appointed a CCO*8. We
also established new organizational units, including the CSR*9
Promotion Division and the Compliance Committee. These
organizations discuss and examine management policies from the
viewpoint of our responsibilities in relation to a wide range of
stakeholders.
We will continue to work steadily and in good faith, always
mindful of the future needs of society, as we evolve from “Oki”
into “OKI,” a global company offering network solutions.
*5 Computer Telephony Integration
*6 Liquid Crystal Display
*7 Production Programmed Read Only Memory
*8 Chief Compliance Officer
*9 Corporate Social Responsibilities
Aiming to be a Global Company, “OKI”
Katsumasa Shinozuka
President and Chief Executive Officer
Business Report 2005 Colors of Convergence
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