Konica Minolta 2002 Annual Report Download - page 12

REVIEW OF OPERATIONS & OUTLOOK 10 Konica 2002
THE CONSUMER IMAGING COMPANY, WHICH SUCCEEDS THE CONSUMER IMAGING COMPANY, ID
SYSTEMS DIVISION, AND CAMERAS & DIGITAL IMAGING DIVISION, WILL MANUFACTURE AND
SELL CONSUMER & COMMERCIAL PHOTO-SENSITIZED MATERIALS AND EQUIPMENT.
Konica integrated its color film, color paper, camera, and ID photo businesses into the Consumer Imaging
Company to better respond to the needs of the market while raising the efficiency of its business.
During the fiscal year under review, despite the commencement of sales of the new Konica Color Centuria
Super series of film, sales prices declined in the domestic market due to intensifying competition while sales vol-
umes in Europe and the United States decreased owing to the effects of the terrorist attacks. In Asian regions,
where we have secured high market shares, efforts to strengthen and expand sales yielded particularly robust increases
in the sales volume of printing paper. We established Konica Online Labs to respond to needs in digital printing using the Internet.
Konica will bolster the foundation of its photo print business as a growth business for the future.
In our film camera business, two of our models received Good Design awards and we launched sales of three new digital camera
models, including the Konica Digital Revio series. Nevertheless, sales in our film camera business declined from the previous fiscal
year. In our color film and color paper business we focused on region-specific strategies to respond to the advance of digitization. In
such growth markets as Asia, Russia, and Central and South America, where the advance of digitization has lagged, we recorded firm
growth in sales, supported by the high quality of the Konica Photo Express minilab shops and our strong network and brand power.
Also, we fortified our sales capabilities for paper films in these regions by taking such steps as carrying out local processing of paper
film packaging to reduce costs and raise distribution efficiency. In such mature markets as Japan, Europe, and the United States, where
digitization is rapidly advancing, falling prices have created a harsh business environment. In response, we are pruning fixed costs
through restructuring and other measures while progressing with our digital photo business as we aim to build a new revenue model.
In the photo ID business we will maximize synergies from the reorganization of our Consumer Imaging Company as part of our
downstream business for input and output services. We will maintain our top market share in Japan and use our infrastructure in the
Consumer Imaging Company to expand this business in overseas markets.
We plan to maintain profit levels by increasing sales in growth regions to compensate for declining demand in mature markets
for such existing businesses as film and paper. In addition, we will further develop our digital photo business and expand our ID and
IPS business. Through these efforts, we aim to achieve net sales of ¥215.0 billion and operating income of ¥9.5 billion in 2005.
From the fiscal year ended March 2002, the previous Consumer Imaging division, Camera & Digital Camera division and ID division have been integrated into the Consumer Imaging Company.
CONSUMER IMAGING COMPANY
(Billions of yen)
NET SALES
’98
197.5
’99
196.0
’00
184.8
’01
166.1
’02
191.5
Konica Digital Revio KD-400Z
President
Hideaki Iwama
Konica Color Centuria SUPER
400