Oki Electric Industry : Public Solutions (with note)

OKI Group

Business Strategy Meeting

Public Solutions

Segment

Hajime Inoue

Executive Officer

Head of Social Infrastructure Solutions Division

June 1, 2023

© Copyright 2023 Oki Electric Industry Co., Ltd.

00 Contents

01 Segment Overview

02 Vision for the Future

03 Medium-Term Business Plan 2025: Targets

04	Key Initiatives	Enter New Fields through	Prepare for	Investment
Business-Specific Platforms	Global Expansion

© Copyright 2023 Oki Electric Industry Co., Ltd.

2

01	Segment Overview
We provide solutions for mission-critical systems in fields such as transportation, disaster
	prevention, and defense, and networks ranging from edge to backbone networks
	Roads/aviation	Disaster prevention	Government agencies	Defense
Electronic toll collection (ETC),	Firefighting command system,	Ministry of Foreign Affairs
	aviation	digital firefighting radio	(MOFA) visa system
							Concerned
				MOFA			government
							agencies
				Diplomatic establishments abroad
				Reception	Screening	Creation	Issuance
	We provide safety, security, and convenience through a combination of
	communication infrastructure and social infrastructure solutions,
		and thereby contribute to society
		Communication FTTH		ONU/HGW
		station
	Data center	Core	Base station	LTE/5G
	Software
	MFH
		network
	Network applications	High-speed		Access network
	(IP telephone, video, audio)	large-capacity		(fixed-line, mobile)
		communication
Network applications	Core network		Access network		Civil aviation
		© Copyright 2023 Oki Electric Industry Co., Ltd.			3

• I will provide a brief overview of our Public Solutions segment.
• In the transportation field, we provide electronic toll collection (ETC) systems, fare systems, probes, and other road systems that collect, analyze, and predict road traffic data, and aviation systems for air traffic control. In the disaster prevention field, we provide firefighting command systems and firefighting radio, municipal disaster prevention wireless communication systems, and disaster prevention information systems. In the public sector, we provide business systems for government agencies. We also offer networks ranging from edge to backbone networks, with such operations being largely geared toward telecom carriers. Finally, we provide cockpit displays for both defense systems and civilian aviation.
• The solutions we handle are mission-critical, and our vision is to contribute to society by providing safety, security, and convenience.

02 Vision for the Future

Continue to provide valuable solutions that meet the expectations of customers involved in "social infrastructure" in both our core businesses and new fields, and grow and develop alongside our customers

Business environment

Direction of growth

・Improved external environment

・Core businesses moving out of changeover period ・Expanding social infrastructure market

Envisioned direction

Safe and convenient social infrastructure

・Improve mission-critical infrastructure and ensure stable operation

Conservation of global environment

・Reduce CO2 emissions by enabling smooth traffic flow ・Protect marine life by monitoring ocean noise

New	New
products
product
		launches
Existing products	defense,	etc.
		Core businesses
		Fire prevention,
		transportation,
		Existing markets

Cultivate by applying core technologies and expertise, and by transitioning to platforms

Increase spin-offs

Expand globally

New markets

Job satisfaction and productivity enhancement

・Improve efficiency of public services and address labor shortages

• Launch new products and expand market share in core businesses
• Grow markets through spin-offs and global expansion
• Cultivate new fields by applying technologies and expertise, and by transitioning to platforms

© Copyright 2023 Oki Electric Industry Co., Ltd.

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• Next, I will go over our vision for the future.
• We will continue to provide valuable solutions that meet the expectations of our customers involved in social infrastructure, both in our core businesses and new fields, and aim to grow and develop our businesses together with our customers.
• As for our views on the business environment, we expect external factors such as the COVID-19 pandemic and supply chain disruptions to improve, and we have confirmed that renewal and replacement projects for our core businesses are planned through 2031, as investment restraint is easing. In addition, we consider expanded investment in green infrastructure and digitalization in the social infrastructure market as tailwinds.
• In terms of our approach to material issues, we will strive to engage with and contribute to the material issues we have defined based on the key message of the company, which is "delivering OK! to your life."
• To maintain safe and convenient social infrastructure, we will help support the development and stable operation of mission-critical infrastructure.
• To conserve the global environment, we will contribute to the preservation of the global environment through data utilization and application. For example, we will reduce CO2 emissions from traffic congestion by enabling smooth traffic flow, and we will protect marine life by monitoring ocean noise.
• To enhance job satisfaction and productivity, we will provide highly

convenient solutions, and thereby help to improve workplace efficiency and address labor shortages.

• With this in mind, we have outlined the direction of envisioned growth for the segment in the following four quadrants.
• We will expand our core fields by launching new products with the aim of expanding fields and enhancing differentiation.
• We will enter other markets by spinning off core products, and venture into new markets by pursuing global expansion. For example, we are considering repurposing fiber-optic sensors that use government defense technologies for civilian use.
• We will cultivate new businesses by leveraging our wireless technology, sensing technology, data analysis, prediction technology, and expertise in business-specific platforms.
• In this way, we will seek to repeat the cycle of expanding our core fields to solidify our foundations, and entering into new fields.
• We also believe that reinforcing our foundations will help us sustain stable earnings, as this will lead to more demand for changes, capacity expansion, and maintenance.