Konica Minolta 2004 Annual Report Download - page 12

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Q. Konica Minolta simultaneously undertook corporate reorganization through a compa-
ny spin-off, established a holding company, and soon after adopted a board-with-commit-
tees system. What have been the results?
A. The example of a Japanese company simultaneously incorporating corporate reorganiza-
tion through a company spin-off, the establishment of a holding company, and the adoption of
a board-with-committees system is indeed quite rare. The merits on the other hand are signifi-
cant and I believe we are seeing positive effects throughout the entire Group. In particular,
executive officers are able to focus entirely on executive functions, while directors concentrate
on managerial supervisory functions. I believe our current structure provides the optimal founda-
tion for improving corporate value. With our shareholders very much in mind, we are working
to boost our performance by enhancing the executive function and maintaining the highest stan-
dards in corporate governance.
Q. What are your thoughts on Konica Minolta’s corporate social responsibility (CSR)?
A. CSR is a core issue for any corporate entity. Of equal importance however, is to clarify
exactly what that responsibility is. Our raison d’etre is to deliver products and services benefi-
cial to customers and society as a whole for an acceptable profit and at the same time to
increase our corporate value. Konica Minolta is active in environmental conservation and com-
munity relations activities in its efforts to contribute to society as a corporate citizen. These must
go hand in hand with its raison d’etre. In the area of corporate governance, strict adherence to
the highest standards of ethical conduct is an integral feature of every facet of our operations.
We have established and continue to implement a Groupwide global compliance system that
promotes adherence with statutory regulations and ordinances as well as corporate ethics as
the basis for ensuring sustainable growth.
Q. Please summarize your dividend policy in relation to management integration.
A. Our goals are to increase corporate value and to consistently raise business performance
for the benefit of all our stakeholders, including our shareholders. The Company’s medium- to
long-term policy on profit sharing is to provide stable dividends to its shareholders after giving
due consideration to the state of consolidated earnings, the payout ratio, and the level of inter-
nal reserves, a key source for future business expansion. For the fiscal year ending March 31,
2006 and thereafter, upon completion of our integration initiatives, Konica Minolta will aim for
a dividend payout ratio in excess of 15% on a consolidated earnings basis, reflecting the ben-
efits of management integration.
Implementing a board-
with-committees system as
the ideal management
model to enhance corpo-
rate value
Promoting comprehensive
compliance systems to
ensure sustainable
growth
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