Konica Minolta 2002 Annual Report Download - page 7

5Konica 2002
pursue alliances and joint development that allows the strength
of both partners to be utilized to the fullest. Konica’s digital
products include digital minilab systems and supplies, digital
cameras, medical and graphic digital systems, copying
machines and supplies, optical pickup lenses, optical-related
products, inkjet-related products, and electronics materials.
ESTABLISHING SEPARATE COMPANIES FOR EACH
BUSINESS AND A HOLDING COMPANY
I will now explain our planned implementation of a system for
separating each of the Company’s key business segments into
independent companies as well as a holding company for over-
seeing these companies. In June 1999, Konica introduced an
internal company system aimed at speeding its business and
clarifying responsibilities to better respond to volatile fluctua-
tions in the business environment. Subsequently, however,
mounting global competition, coupled with trend toward digi-
tal networks, triggered abrupt changes to the structure of our
markets. To prevail in intense competition amid this environ-
ment, Konica decided to establish separate business companies
for each of its businesses as well as a holding company for
these companies, with a target date of April 2003. This reorga-
nization is aimed at enhancing the speed of management to
strengthen our competitiveness while clearly separating man-
agement and execution functions and maximizing our corpo-
rate value. The operating companies will become independent
corporations possessing clearly delineated responsibilities and
authority and will be better able to execute operations more
quickly through the optimal management of each business.
Concurrently, Konica will unify the individual business com-
panies under the holding company and will carry out strategic
decision-making initiatives based on its business portfolio.
NEW SUBSIDIARIES TO INCLUDE FOUR BUSINESS
COMPANIES AND TWO COMMON FUNCTION
COMPANIES
As shown in the diagram, by setting up our business segments
as separate companies, our new organization will consist of
four business companies and two common function com-
panies, all of which will eventually become totally independent
subsidiaries. Konica Consumer Imaging Company (tentative
name) will take over the business of the Consumer Imaging
Company as well as the ID systems (ID photo business) and
camera businesses and will engage in the manufacture and
sale of photosensitive materials and related products as well
as cameras.
Konica Medical & Graphic Company (tentative name) will
be the successor company for the Medical and Graphic
Company and will engage in the manufacture and sale of such
products as medical film, platemaking films, and processing
systems.
Konica Office Document Company (tentative name) will
take over the business of the Office Document Company and
manufacture and sell such office equipment as copiers as well
as related copier supplies. Konica Optics & EM Technologies
Company (tentative name) will be the successor to the Optics
Technology Company and will manufacture and sell optics
products, related equipment, and electronics materials.
Konica Technology Center Company (tentative name) will
take over the functions of the Central Research Laboratory, Ink
Jet Technology Business Center, and the Intellectual Property
IJT*3
KONICA
TECHNOLOGY
CENTER CO., LTD.
KONICA SHARED
SERVICE CO., LTD.
CI
CDI
ID*1
IPS*2
MG OD OPT
EM
HOLDING
COMPANY
KONICA MEDICAL
& GRAPHIC
CO., LTD.
KONICA CONSUMER
IMAGING CO., LTD.
KONICA OFFICE
DOCUMENT
CO., LTD.
KONICA OPTICS &
EM TECHNOLOGIES
CO., LTD.
ORGANIZATION CHART (effective April 1, 2003)
*1 ID (Driver’s licenses)
*2 IPS (Identification photos)
*3 Konica Technology Center includes
the Intellectual Property and Licensing
Department, as well as IJT
The company name is provisional and
will be an item for approval at the
General Shareholders' Meeting.