Konica Minolta 2005 Annual Report Download - page 13

11
Optics Sales Trend
(Billions of Yen)
0
50
100
150
200
20042003 2005 2009
(Plan)
Sales Volume of
Optical Pickup Lenses
(Index based on March 2003 as 100)
0
50
100
150
200
20042003 2005 2009
(Plan)
Sales Trend
by Product
(Billions of Yen)
Others
Glass Substrate for hard disk
LCD Materials
DSC/Mobile Lenses
Optical Pickup Lenses
0
50
100
150
200
20042003 2005 2009
(Plan)
LCD-Use TAC Film
Sales Volumes
Total Volume
High Performance Products
(Index based on March 2003 as 100)
20042003 2005 2009
(Plan)
0
100
200
300
400
500
ESTABLISHING A FIRM EARNINGS BASE FOR THE OPTICS BUSINESS
The Optics business continues to steadily expand, and the Group aims to accelerate
this growth under the V-5 Plan. The management integration of Konica and Minolta
has allowed the organic melding of the plastic lens technology that was Konica’s
strength with the glass mold technology that was Minolta’s strength, which we believe
has strengthened the business base and product strength of the Optics business.
In the main optical pickup lens business, while profit margins are under pressure
due to DVD player price declines in keeping with growing product diffusion, the
market for DVD devices with recording functions is rapidly expanding, and the
Group believes that the next generation of pickup lenses will become the main driver
of the business. Consequently, the Group expects growth in the pickup lens business
to continue going forward. Konica Minolta has industry leading technology in
objective pickup lenses and is aming to maintain its leading market share in lenses
for next generation DVDs. In addition to applying for patents on products for next
generation DVDs in order to raise the barriers to market entry, the products’
compatibility with peripheral devices is being strengthened.
High performance products such as micro lens units for camera-equipped mobile
phones and microcamera modules enjoy a good reputation especially in the Japanese
market, and the Group will continue working in the future to acquire customers in
growing overseas markets while working to expand the current business domain by
leveraging its technological strength. In particular, given the market shift to high
image quality and value-added features, Konica Minolta’s technological strengths in
lenses and cameras are becoming an advantage as the Group leads this shift.
In DSC/VCR lens units, the Group will continue its efforts to acquire new
customers. In addition, sales of glass substrate for hard disk drives are being driven
by sales of smaller diameter 1.8-inch products in addition to the 2.5-inch substrates
sold heretofore.
Accordingly, as the Optics business has an abundant lineup of products with good
growth potential, the Group is confident the goals for the segment as outlined in the
V-5 Plan can be achieved.
CONTINUED GROWTH FORESEEN IN TAC FILM FOR LCDS
The business for TAC film used in LCDs continues to grow driven by the diffusion of
LCD panels used in televisions and personal computers, while particularly high
growth is forecast for high performance product markets such as retardation film. As
is shown in the graph at right, the proportion of high performance products to total
LCD-use TAC film continues to expand, and the Group believes that growth can be
sustained. In response to growth in demand, the Group continues to expand
production capacity, and it plans to begin operating its third plant in October 2005
and to begin operating another plant in the second half of fiscal 2006. The aim is to
expand sales of TAC film through such measures while improving product quality to
enhance competitiveness.