Konica Minolta 2004 Annual Report Download - page 21

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Q. What kind of future do you see for the light production
printing market?
A. We are anticipating an increase in demand for monochrome
and color high-speed MFPs in the light production printing markets
that includes print-on-demand products. Our target is to increase
sales sixfold to more than ¥60 billion between fiscal 2003 and fis-
cal 2006 and to establish a solid position within the market. To
this end, we will introduce both monochrome and color high-speed
MFPs and deliver a product lineup in tune with professional needs.
Following our success in the Japanese market, we are targeting
Europe and the United States. We will establish a designated
local sales structure for each region and commence full-fledged ini-
tiatives to expand our business scale. In addition, we will pursue
every opportunity in light production printing by effectively utilizing
office equipment, and graphic printing sales channels.
Q. How would you describe conditions in the color LBP mar-
ket? What are your business targets in this area and how will
you achieve them?
A. We maintain high hopes for the principal A4/letter size color
LBP market and expect to increase profits and our share from 23%
in fiscal 2003 to 30% in fiscal 2006. In fiscal 2006, color LBP
sales are expected to remain strong. In particular, our consumables
sales will increase considerably, resulting from the spread of our
LBPs in the market. We will strengthen our own sales channels with
the aim of increasing the number of machines in the field as well
as enhance our product lineup to ensure ongoing competitive
advantage.
Q. Please outline the distinctive advantages of Konica
Minolta’s polymerized toner.
A. Konica Minolta’s proprietary polymerized toner can repro-
duce minute lines, characters, photos, illustrations, and half-tones
with greater precision and richness and at a lower cost. For these
reasons, this product is held in high regard by the market and we
are seeing an increasing number of models equipped with our
polymerized toner, which has led to a sharp jump in production
volume. Another distinct advantage is the overwhelming number of
patents linked to this product, providing significant protection
against imitation by our competitors. In addition, plans for a new
plant are on track and we anticipate production to commence dur-
ing fiscal 2005. While maintaining the industry’s top manufactur-
ing capacity, we will aggressively load polymerized toner into a
broader range of products. Through our technological advantages
and proactive product development, we are targeting the No. 1
position in the polymerized toner industry by fiscal 2005.
Q. In what areas are you seeing the benefits of integration?
A. On the development side, integration benefits have been felt
through consolidation of development teams allowing greater effi-
ciency and speed in the development and commercialization of
new software and hardware. On the production front, we are
anticipating significant benefits from the new polymerized toner
production plant as well as an increase in hardware production in
China. But perhaps the greatest benefits have been seen in market-
ing. The integration of sales companies in Japan, Europe and the
United States has strengthened and enhanced our sales structure.
Position of the Light Production Printing Market in Terms of Monthly Copy/Print Volume
Full-scale entry in to the light production
printing market with high-speed monochrome
and color 51ppm models
Office printing
Light printing
Production printing
Monthly
Copy/Print Volume
Low
High