Konica Minolta 2004 Annual Report Download - page 24

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Q. How do you view market conditions in the Optics business?
A. The market continues to experience strong growth. Home elec-
tric appliance manufacturers, our principal customers, are focusing
more and more on digital information home appliances. This
augurs well for our four business fields, namely optic recording
devices, optic imaging devices, communications equipment, and
digital cameras. In the field of optic recording devices, demands
for higher density are rapidly increasing, driven by the shift from
gigabyte technology to terabyte technology. In the optic imaging
device field we are expanding production facilities for the highly
versatile TAC film, as demand for LCD polarizing plates increases.
Our focus on the development and sale of high-value-added, high-
ly functional films, reflects the sharp growth in the LCD TV and
large-size LCD monitor markets. Sales of microcamera units have
skyrocketed in the communications field as demand for mobile
phones equipped with cameras continues to surge. As the shift
toward digital cameras takes hold, sales of lens units in the compo-
nent business also climb.
Backed by the technological and competitive advantage we
enjoy in each of our four business fields, essential in an era of digi-
tal home electric appliances, I am confident we will record significant
growth in concert with the explosive expansion forecast for this area.
Q. What are the strengths of the Optics business?
A. Our wealth of intellectual property accumulated over many
years is a major strength of the Optics business.
We are constantly requested to deliver cost reductions and in
particular raise specifications. For example, laser wavelength for
the use of optical pickup units in CDs and DVDs has shifted from
780 nanometers to 650 nanometers and further to 400 nanome-
ters, while demands for increased precision continue to rise.
Essential to the development of such high-precision components is
the development of proprietary inspection systems and processing
equipment. Konica Minolta is well positioned, protected from the
two perspectives of technical expertise and its wealth of intellectual
property. This competitive advantage also serves as a substantial
deterrent to new entrants in this field.
Q. What do you perceive are the most significant merits of
integration?
A. I believe the merits are significant. Primarily on the technical
side, we have seen a significant upgrade in our capabilities as the
former Konica’s expertise in specialized fields is balanced with the
former Minolta’s broad base of technologies. The Company has
significantly increased its competitiveness through management
integration of its optical lens technology. As a result, Konica
Minolta is well positioned to experience new synergy benefits from
the integration of respective expertise in plastic lens technology
and glass lens technology. This integration has created new oppor-
tunities for microcamera unit applications in mobile phones and
lens units for digital cameras. In optical design, the former Minolta
employed engineers recognized as leaders in the industry. This is
now generating new business development and the potential for
growth. Finally, the integration also delivers a complementary mix
between the marketing expertise of the former Konica and the R&D
focus brought by the former Minolta. We are already seeing the
benefits of harmonious coexistence.
Back light
Polarizing plate Composition of Polarizing Plate
Glass plate
Color filter electrode
LCD
TFT/Electrode
Glass plate
Polarizing plate
C
om
p
osition o
f
Li
q
uid Cr
y
stal Panel
Anti-reflection/hard-coat treatment
Pol
y
vin
y
l-alcohol
p
olarizing element
Retardation film/TAC film
TAC film
Po
l
yviny
l
-a
l
co
h
o
l
po
l
arizing e
l
ement
Retardation film/TAC film
TAC film