Konica Minolta 2004 Annual Report Download - page 17

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15
Photo Imaging
Promoting Earnings-Centric Structural Reform in the Photo
Imaging Business
The Company is implementing total structural reform to establish
profit-oriented operations focusing on comprehensive cost reduc-
tion. At the same time, we are establishing a business structure,
placing digital cameras and digital photo-related products at the
core, based on our unrivalled expertise and know-how, in an effort
to deliver products and services from input to output.
In response to the decline in demand in the film business, the
Company is pursuing a fundamental shift from a business focusing
on film to products related to digital printing such as inkjet media.
In the camera business, Konica Minolta will work to concentrate
on higher quality and high-value-added digital cameras, and at
the same time, strengthen development of key devices including
lenses that incorporate our technology. In this segment, we have
identified the numerical targets of ¥290 billion in sales and ¥16
billion in operating income for the final year of the management
plan.
Medical and Graphic Imaging
Actively Developing Digital Products and Solutions in the
Medical and Graphic Imaging Business, Shifting from Film-
Based to Digital Products and Services in an Effort to Secure
Increased Earnings
In medical imaging, sales of our digital X-ray image input/output
systems help expand demand for dry film. The Company is work-
ing to develop its solutions business and to expand activities in
contrast media and medical supplies. In graphic imaging, Konica
Minolta strives to expand sales of its color proofing systems in
Japan and to increase its market share in film overseas. At the
same time, we will continue to develop mainstay products for next-
generation computer reproduction systems and systems for small-lot
printing. In the Medical and Graphic Imaging business, Konica
Minolta is targeting sales of ¥145 billion and operating income of
¥13 billion for the fiscal year ending March 31, 2007.
Allocation of Management Resources (Three-year total through March 2007)
• Business Technologies 48%
• Optics 12%
• Basic and advanced technologies 12%
• Photo Imaging 14%
• Medical & Graphic Imaging 11%
• Sensing 3%
Investment Research and Development Expenditures
Total Capital Investment: ¥230.0 billion Total Research & Development Expenditures: ¥220.0 billion
Business Technologies (includes equipment leasing ) 45% •
Optics 15% •
Strategic investments 13% •
Photo Imaging 13% •
Medical & Graphic Imaging 5% •
Sensing 1% •
Others 8% •
73
%
72
%
More than 70% of the Group’s capital investment and R&D expenditures are allocated to the Business Technologies and Optics businesses.