Konica Minolta 2001 Annual Report Download - page 4

Konica Corporation/ Annual Report 200 1
2
Transformation Is the Key to
Konica’s Future
The key to Konica’s future is to
dramatically transform the Company’s
business structure. Meeting this
challenge will require us all to work
together with relentless determination.
Since assuming the position of
president and chief executive officer in
April 20 0 1 , I have emphasized this
point at every possible opportunity.
The report you are now reading is
intended to clarify Konic a’s business
position to you, our shareholders,
and to rally the support of everyone
involved in Konica’s management and
business operations.
In my few months of serving as
president, I have bec ome convinced
that our company is poised to move in
a positive direction.
In February 2 0 01 , the Company
formulated a new medium-term
management plan for the period from
the fiscal year ending March 20 0 2 to
March 2 0 0 5 . Called SAN Plan 2 0 04 ,
the plan maps out a c ourse for
Konica’s growth during this age of
rapid change, consistent with the
challenge mentioned above. An outline
of the plan follows. First, however, I
would like to report on the Company’s
business performanc e during fiscal
2 0 0 1 , ended March 31 , 2 0 0 1.
Business Results for Fiscal 2001
Despite the fact that the fiscal year
under review saw a largely
inhospitable business environment, the
Company’s performance went almost
as planned. We rec orded net sales of
¥ 5 4 3 .7 billion and net income of ¥ 6 .5
billion. While I would greatly prefer to
deliver a more positive report on our
performance, I regret to say that we
fell short of some of our goals
compared with the previous fiscal year.
Key factors behind the adverse results
included unfavorable exchange rates,
with the yen’s appreciation during the
year having a significant dampening
effect on sales and operating inc ome,
and an extraordinary loss resulting
from mandatory retirement benefit
payments. However, looking back at
the consolidation of our product line
and the cost-reduction measures the
Company undertook, we can claim a
certain degree of success for the year.
In business related to the
photographic materials segment, the
Medical and Graphic Company
managed to post gains by shifting early
on to digital products, leading to
development and marketing of such
systems as to record, transmit and
store X-ray images ( the Konica Direct
Imaging System) . In addition, the EM
& ID Business Group saw increased
sales of triacetyl cellulose ( TAC film) , a
key material for making the polarizing
filters used in liquid crystal displays
( LCDs) . Operations went into full
swing in March 20 0 0 . Due to the high
production capacity at our dedic ated
fac ility— the industry’s first— we
succeeded in meeting the growing
market demand. At the same time, the
Consumer Imaging Company, whic h
handles color film and photographic
paper, recorded steady growth in
markets such as Russia, India,
China and Brazil. Due to sluggish
domestic demand, falling prices,
and unfavorable exc hange rates,
revenue and profit declined. The Inkjet
Business Group, whic h handles inkjet
paper products, continued to cultivate
large-scale business in its sector with
TO OUR SHAREHOLDERS
In this difficult market environment, Konica is working to steadily achieve such basic
goals as increasing operating income, decreasing interest-bearing debt, and boosting
corporate value. We are also pushing forward with efforts to dramatically reform our
business structure in line with the trend toward digitization.