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4Annual Report 2008
MImplementation of (Short-Term) Emergency Measures in the Fiscal Year Ended March 31, 2008
In March 2007, OKI instituted emergency measures until the effects of implementing medium- to long-
term changes in the business structure become sufficiently apparent. The measures and target values are
shown in the chart below. With respect to performance, OKI achieved its projected targets in nearly
every category.
MMedium-Term Business Plan (Medium- to long-term measures)
Based on the three basic policies for reorganizing the business structure instituted in March 2007,
these key strategies were summarized in the medium-term business plan in October 2007 and are
outlined below.
In light of an agreement, OKI concluded in July 2008 to transfer 95% of the shares of its semiconductor
company to Rohm Co., Ltd., the Company is currently reexamining its medium-term business plan.
[Strategy 1]
Accelerate selection
and concentration
[Strategy 2]
Shift to a more efficient
management style
(Full reexamination of
fixed-cost structure)
[Strategy 3]
Develop strong
businesses based
on strong products
Beginning in the Fiscal Year Ended March 31, 2008,
OKI Has Been Working Hard to Revamp Its Business Structure
with the Goal of Further Enhancing Its Earnings Potential.
OKI’s Efforts Toward a V-Shaped Recovery
Short-Term Measures in the Fiscal Year Ended March 31, 2008
Description Target Results
Reduce/Consolidate 10% Consolidate or partially consolidate 12% of BUs
number of business units (BUs)
Resource shift Shift to focus businesses 700 workers Completed shift of 1,100 workers
Shift to affiliated companies 500 workers Shift 285 workers (incomplete)
Safety placement 500 workers Implemented on 606 workers
Personnel costs Reduce by ¥3.5 billion Cut ¥3.5 billion as planned
Curb investments Hold down to ¥10.0 billion Cut ¥19.5 billion as planned
Reduce expense outflow Reduce by ¥3.0 billion Cut ¥3.0 billion as planned
Reduce 15% year on year Reduce 17% year on year
Reduce inventories End of year inventory target ¥145.0 billion End of year performance ¥138.9 billion
(¥6.1 billion below target)
Info-Telecom ¥4.0 billion
Reduce mainstay Semiconductors ¥2.0 billion Each business group achieved annual target
product costs
Printers ¥1.0 billion