Konica Minolta 2004 Annual Report Download - page 14

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12
Group Operating Targets
Based on management benchmarks that are clearly set each fiscal
year, Konica Minolta is targeting consolidated net sales of
¥1,330 billion, operating income of ¥160 billion, and net
income of ¥80 billion in the fiscal year ending March 31, 2007.
Of equal importance are efforts to reinforce the Group’s financial
position. As of the March 2007 fiscal year-end, we are targeting
shareholders’ equity of ¥505 billion and a shareholders’ equity
ratio of 49%. Other indictors include interest-bearing debt of ¥175
billion as of March 31, 2007, compared with ¥268 billion as of
March 31, 2004. Accordingly, Konica Minolta has established a
debt-to-equity ratio target of 0.35 times.
Fundamental Tenets of the Medium-Term Management
Integration Plan
Konica Minolta has identified three underlying initiatives as the
basis for its medium-term management integration plan:
• business portfolio management
• the swift realization of synergy and integration benefits
• the creation of a new corporate culture
In implementing effective business portfolio management,
Konica Minolta will strive to achieve the Group’s sustainable
growth, and maximize return as well as minimize risks by establish-
ing stable earnings capabilities. We will also reduce the volatility
in profitability due to changes in the business environment, and dif-
ferences in the earnings capacity of each business. To this end,
we will:
• clarify the position and standing of each business and
establish an optimal business mix.
• prioritize the allocation of management resources to
growth areas.
In more specific terms, we will concentrate more than 70% of
the Group’s resources over the term of the plan to the core
Business Technologies business and the strategic Optics business.