Oki 2011 Annual Report Download - page 6

4Annual Report 2011
TO OUR STAKEHOLDERS
We offer our sincere condolences to all victims of the
Great East Japan Earthquake and pray that areas affected
by the disaster will return to normal as swiftly as possible.
In the fiscal year under review, the world economy overall
posted moderate recovery, buoyed by a firm economic turn-
around among emerging nations. This was despite economic
stagnation in industrialized nations, impacted by financial
crises in Europe and other factors. The Japanese economy,
too, showed a recovery trend underpinned by a turnaround in
personal consumption. Due to the aforementioned disaster in
March, however, the outlook has become unclear.
Under these circumstances, the year under review
proved a major turning point for the OKI Group. In February
2010, we announced our mid-term business plan, under
which we reorganized our business structure and integrated
Group companies. In October, we brushed-up the plan and
launched various measures under two initiatives: a program
to enhance our management bases and a program for
growth. Under the program to enhance our management
bases, we revised our retirement benefit system and imple-
mented an early retirement benefit program. We also
implemented a capital reduction and then issued Class A
Preferred Stocks to prepare a path toward early restoration
of cash dividends, and thereby improved our capital base
and secured capital for strategic growth investments.
For the year, the Group reported consolidated net sales
of ¥432.7 billion, down 2.5% from the previous fiscal year.
The decline stemmed mainly from the yen’s appreciation
and stalled economic recovery in Europe. By contrast, we
succeeded in reducing operating expenses and reassessing
fixed costs. Excluding the impact of the Great East Japan
Earthquake, therefore, we posted an operating income of
¥11.0 billion, mostly reflecting our initial projection.
In the fiscal year ending March 2012, we will continue
implementing our program to enhance our management
bases while focusing on our program for growth. We will
expedite efforts to lay the groundwork for robust profit
generation and growth. Here, we will build on the strong
management platform capable of generating stable profits
that we built in the year under review. Meanwhile, we will
concentrate the investment of resources in focus busi-
nesses—Solutions &Services, Mechatronics Systems,
Printers, and EMS—and expand our business in new fields.
In addition, we will pursue strategic alliances with partners,
Closely monitoring changes in customer
and market needs, the OKI Group will
create new business opportunities
and pursue growth strategies.
aiming at business expansion and targeting medium- to
long-term growth.
OKI celebrates the 130th anniversary of its foundation in
2011. In this milestone year, we will revisit the “enterpris-
ing spirit” that lies at our core. We will use foresight and
courage to resolutely meet challenges and take action in
our quest to swiftly deliver the products and services that
our customers demand. As I will lead the drive to achieve
the objectives of our mid-term business plan, I look for-
ward to the renewed support and cooperation of all
stakeholders.
July 2011
Hideichi Kawasaki
President
Oki Electric Industry Co., Ltd.