Konica Minolta 2004 Annual Report Download - page 11

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9
Q. Please outline improvements to your financial position.
A. We have taken concrete steps to improve the Company’s financial position and have
reduced interest-bearing debt to ¥268 billion as of March 31, 2004. On the other hand, in
order to secure acceptable growth, we recognize the need for capital and R&D investment,
particularly in the Business Technologies and Optics businesses. Our goals are to further
reduce interest-bearing debt to ¥175 billion through the use of internal cash flows and to
secure a robust shareholders’ equity ratio. With this as our platform, we will embark on an
aggressive investment program with the aim of achieving dynamic growth.
Q. What is your strategy for the growing Chinese market?
A. China represents not only a manufacturing base, but also a vast and lucrative market in its
own right. Currently, China is the Konica Minolta Group’s largest production base. In terms of
marketing, we are still in the early stages of development. China is clearly recognized, howev-
er, as a strategic region for Konica Minolta and its importance extends beyond the individual
business company level, impacting the fortunes of the Group overall. We allocated specialist
staff to assist in developing marketing strategies in China for each business company, whose
missions include formulating and implementing business strategies specific to China, promoting
management integration, and actively building a dynamic brand for the Chinese market.
While a number of issues require clarification, we will continue to focus on China and its mar-
ket trends with the aim of establishing a leading position.
Positioning China as a
strategic region
>
Shareholders’ equity (Billions of yen)
Mar ’03 Mar ’04 Mar ’05 Mar ’06
Results Targets
Mar ’07
239.0 335.4 370.0 430.0 505.0
27.1 34.6 37.4 42.0 49.0Equity ratio (%)
Strengthen Financial Position
Shareholders’ equity & Equity ratio
Interest-bearing debt & Debt/equity ratio
(Billions of yen) (%)
Interest-bearing debt (Billions of yen)
Mar ’03 Mar ’04 Mar ’05 Mar ’06
Results Targets
Mar ’07
322.8 268.0 255.0 240.0 175.0
1.35 0.80 0.71 0.56 0.35Debt/equity ratio (Times)
’03
600
400
200
0
60
40
20
0
’04 ’05 ’06 ’07
(Billions of yen) (Times)
’03
400
300
200
100
0
1.5
1.0
0.5
0.0
’04 ’05 ’06 ’07
Debt/equity ratio Equity ratio
Shareholders’ equityInterest-bearing debt