OKI has formulated the "Medium-Term Management Plan 2022" with FY2022 as the final year. This is a management plan that aims to establish the foundation for realizing "sustainable growth through resolution of social issues" by implementing structural reforms in light of the accelerated changes brought about by the spread of COVID-19, as well as leveraging our strengths in AI Edge technology and Mono-zukuri (manufacturing).
Various social issues such as environmental problems, natural disasters, and labor shortages have surfaced, affecting economic activities and daily life. In particular, COVID-19 showed that the change occurred in an instant. In this environment, with the key message of "Delivering OK! to your life," OKI will solve social issues through the critical Mono-zukuri and Koto-zukuri (creation of solutions and services) that support social infrastructure services that cannot be stopped. We have also identified material issues (materiality) based on our vision and social issues to be addressed, the expectations and demands of society and stakeholders, and the social issues surrounding OKI.
In 2031, OKI will celebrate its 150 year anniversary. In order to achieve sustainable growth through the resolution of social issues, which is our vision, we believe that large-scale structural reforms are necessary. Positioning the 3 years up to FY2022 as building the foundation for growth, we will proceed structural reforms.
By combining OKI's strengths in Mono-zukuri and AI Edge technology, we aim to transform ourselves into a company that offers solutions to social issues and achieve growth through solving more customer issues. While major competitors are focusing on the cloud, OKI will differentiate itself by providing real field equipment in the edge domain and visualizing field data acquired from such equipment through AI Edge technology and real-time processing in conjunction with the cloud.
In order to continuously create new businesses and products that contribute to society, we will promote an innovation management system through co-creation. By combining R&D and business development utilizing the strengths of the AI Edge, we will promote co-creation that contributes to solving social issues in the new normal.
With the goal of deploying and introducing the facilities, equipment, and IT systems that will be the foundation of our growth strategy, we will invest between ￥70.0 billion and ￥80.0 billion over three years, including M&A. This will include such activities as the strengthening of the Mono-zukuri infrastructure in order to realize manufacturing at optimal sites, the transition to smart factories, the renewal of ERP with the aim of promoting the digital transformation of the OKI Group, and IT consolidation.
Moreover, in order to continue being "a company that solves social issues through critical Mono-zukuri and Koto-zukuri," we will invest ￥40.0 billion in R&D over three years with the goal of research into necessary cutting edge technologies, new digital transformation solutions, the development of components, the development of technologies related to AI Edge and so forth.
While shifting our business portfolio to aim for growth, we will realize operating income that equals or exceeds that of fiscal year 2019, as well as the building of a stable corporate infrastructure.