Konica Minolta 2002 Annual Report Download - page 10

REVIEW OF OPERATIONS & OUTLOOK 8Konica 2002
Konica has designated its Optics and EM (Electronic Materials) businesses as strategic business fields and aims
to achieve high income in these fields.
Regarding its Optics business, in the optical pickup field, although PC-related markets remained in an adjust-
ment phase, there was a recovery in the second half of the fiscal year, mainly in DVD-related markets. Sales of opti-
cal lens units for VTRs and other applications declined owing to falling market prices.
In our EM business demand in the market for LCDs was sluggish during the first half of the fiscal year due to a slump
in IT-related markets. In the second half, however, there was a recovery in demand, mainly for our 40-micron triacetyl cellulose (TAC)
film for LCD polarizing plates developed and introduced in advance of similar products by competitors. Nevertheless, sales in our EM
business declined from the previous fiscal year.
Integrating our Optics and EM businesses into a single company will allow us to take advantage of the characteristics of these busi-
nesses as a common upstream-type business and to combine such core technologies as optical technologies with technologies for func-
tional materials, film creation, and coating for electronics materials. This, in turn, will lead to the creation of new businesses, including
display-related businesses and enable us to expand our business in this field.
In the Optics business we will maintain the superiority of our aspherical plastic lenses for optical discs, mainly DVDs, while further
expanding this business. These lenses integrate technologies that enable enhanced performance and more-compact products. We have
secured an approximately 70% share of the market for these products. Looking ahead, we will center our R&D on aspherical plastic
lenses for optical discs for use with blue-violet lasers, which are expected to become the principal type of laser used in the future. These
efforts will be aimed at the timely development of new products; distinguishing product quality at all phases, from development and
design to production; developing future-oriented technologies; and establishing a solid position in the market. As a new business, we are
planning for the full-fledged commencement of our microcamera unit (MCU) business in fiscal 2003. MCUs are integrated into various
information terminals that include mobile phones, PDAs, and digital still camera (DSCs), and we expect to steadily expand this business
in the future. Konica aims to establish a solid foundation as a leading company in MCUs, focusing these efforts on its core technologies.
In its EM business, Konica will develop its information network-related business while vigorously participating in the field of mate-
rials for use in markets for displays, which are expected to grow sharply. Anticipating a recovery in the market from 2002, we will
place particular emphasis on accelerating our investments in our TAC film business. These investments will be for the construction of
new plants, as we increase and strengthen our production capabilities as well as develop new production technologies and expand our
market share. In addition, we will strengthen our lineup of thin-film products that integrate our film creation technologies, which are
core technologies, and improve our technologies and services as a TAC film vendor. Also, we will combine our material technologies
and our coating technologies, which are also core technologies, as well as develop and manufacture films that meet the needs of
customers and engage in high-value-added businesses. In particular, we aim for the quick start of sales of functional optical films that
use TAC film as a material.
THE OPTICS & EM TECHNOLOGIES COMPANY, WHICH SUCCEEDS THE OPTICS TECHNOLOGY
COMPANY AND ELECTRONIC MATERIALS DIVISION, WILL MANUFACTURE AND SELL OPTICS
PRODUCTS & RELATED EQUIPMENT AND ELECTRONIC MATERIALS.
OPTICS & EM TECHNOLOGIES COMPANY
(Billions of yen)
NET SALES
’98
25.9
’99
26.3
’00
35.4
’01
40.1
’02
36.9
Aspherical plastic lenses used in
optical disk drives
MO disk drive
President
Takashi Matsumaru