Konica Minolta 2001 Annual Report Download - page 11

Konica Corporation/ Annual Report 200 1
9
Office Document Company
Full Entry into the “Solutions” Business, Backed by the Power of Direct Distribution
Sales declined 3 .9% compared with the
prior year, to ¥1 7 4 .1 billion, and
operating income fell 48.6%, to ¥ 7 .4
billion.
As a result of our steadily launching
new mid-speed digital copiers, we
gained a full lineup of products, and
sales volume grew by more than double
the rate of sales growth in worldwide
markets. We fell short of our sales
target, however, due to such factors as
the yen’s apprec iation and the high
sales ratio of low-speed mac hines,
compared with high-speed machines.
In Japan, sales on a volume basis
climbed 7 % as demand shifted to low-
speed machines, but the sales amount
inched up by only 3 %. In North
America, sales rose slightly on
a volume basis, but the sales amount
actually dipped due to the impact of the
strengthened yen. In Europe, sales on a
volume basis increased by about 4%
thanks to a switch to digital c opiers,
and the sales amount c limbed 6 % on a
local currency basis. The yen’s
appreciation, however, resulted in a
signific ant drop in inc ome. In April
2 0 0 0 , we publicly announced our
business tie-up with Minolta Co., Ltd.,
and in December our joint-venture
company commenced production of
polymerization toner. Other joint
activities began as well, such as the
purc hase of parts, supply of finished
products and cooperative R&D efforts.
As for future business development,
we will pursue growth in four
directions. First, our tie-up partner
Minolta will take over development of
low-speed mac hines while we focus on
mid- and high-speed machines, areas
where we are fundamentally strong.
Second, we will work to expand
business centered around
polymerization toner, the next-
generation toner we developed. For
example, we will equip new products
with polymerization toners to achieve
even higher image quality. Third,
we will strengthen our price-
competitiveness by undertaking
further cost-reduction measures.
With the digital copier now in its
second generation, it is vital to reduce
costs starting right at the design stage.
One of our cost-reduction efforts will
be to expand production in China of
mid- and high-speed machines. Fourth,
we will launch fully into the “solutions”
business, such as print-on-demand
( POD) services. In Europe and the
United States, for example, we will
enter the solutions business centered
on high-speed mac hines, taking
advantage of the powerful direct
distribution systems and
networks we have established
there. As in the United States, we
will also use our European
solutions c enter to reinforce
software development and sales
support.
32.0%
Net Sales
0
50
97 98 99 00 01
181.5 185.9 201.6 181.1 174.1
100
150
200
250
Net Sales ( ¥ billions)
Konica 7035
Konica 7075