Konica Minolta 2003 Annual Report Download - page 5

KONICA M INOLTA HOLDINGS, INC. 2 0 0 3
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The field of imaging, a business domain of both Konica and Minolta, remains very promising, with continued growth forecast. As technology
advances, however, the market is likely to be dominated by top-ranking companies with the gap between upper- and lower-ranked businesses
expected to increase. Competition is also anticipated to intensify as large numbers of companies from other industries enter the market. To
combat this difficult environment, Konica and Minolta have worked to improve their competitiveness in the image information business,
beginning in April 2000, through collaborative partnership in the research and development of new products and joint businesses in the
consumables field, including polymerization toner. This partnership has lately achieved considerable success, with both companies placing
greater trust in one another and advancing their management integration plans. Fruitful collaboration has enabled the two companies to
maximize synergies in such businesses as optical technologies and cameras, in addition to the image information business. We firmly believe
that the resulting company will achieve a leading position in the global marketplace.
To date, our two companies have met and overcome our respective management difficulties independently. We have come to the
conclusion, however, that it will be difficult to realize further development and growth if we maintain existing structures and status. Accordingly,
we established Konica Minolta Holdings, Inc. in August 2003, based on a determination to found a brand-new enterprise group.
The aims of this management integration are as follows:
1. To maximize corporate value by promoting portfolio management and improving competitiveness of individual businesses
> We will execute a strategy for achieving top standing in various categories, with the image information business at the core of portfolio
management, to drive growth.
> In the optics business, where we already are No. 1, we will expand our business domain, making it even stronger, by combining and
upgrading our optical technologies.
> We will increase the synergy between Minolta’s camera business and Konica’s consumer photo imaging business.
2. To operate our business in a fair and transparent manner, under a new corporate governance scheme
Immediate issues and concerns facing management are as follows:
1. Building a new corporate culture after the integration from the existing corporate cultures of the two companies, while
accelerating the pace of the integration itself
2. Accelerating measures to streamline costs at the new company
By improving our technologies in optics, precision engineering, materials, and coating—which Konica has cultivated over 130 years and
Minolta has accumulated over 75 years—we will work diligently to provide our customers with unique products and services that will assure
them of the utmost satisfaction and delight in our photo imaging business domain. Our aim is to become a global market leader, through
advanced technology and solid reliability.
Operating objectives for the new company have been set at ¥1,300 billion in net sales and ¥150 billion in operating income for fiscal 2005.
We are working to implement management rapidly and maximize shareholder value to achieve these objectives. To this end, we are grateful for
your support and understanding.
August 2003
Fumio Iwai, President & CEO, Yoshikatsu Ota, Vice President,
Representative Executive Officer Representative Executive Officer