Konica Minolta 2005 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2005 Konica Minolta annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

17
REVIEW OF FISCAL 2004
In fiscal 2004, ended March 2005, the emphasis in the MFP business was on
expanding sales of high value-added products such as color models and high-speed
monochrome models, where the Group worked to maintain and expand market
share. In the MFP segment where the shift to color is evolving rapidly in developed
markets, the Group’s strategic bizhub C350 model made a significant contribution.
Marketed from March 2004, the bizhub C350, which features industry leading
polymerized toner based high picture quality, high reliability and high operability,
was well received by customers. This supported strong sales growth in the color
segment, particularly in Europe and the U.S.
On the other hand, the Group was able to generate favorable sales growth in the
high-speed segment with the bizhub PRO 1050, which features an output speed of
105 pages per minute, and by strengthening its presence in the print-on-demand
market where expected growth is higher, despite intensified competition in the
medium-to-high-speed monochrome MFP segment.
In the LBP market, the Group introduced the magicolor 2400 series in the low-
speed segment amid intensifying competition for low-speed color models in the
European and U.S. markets and the magicolor 5430DL in the high-speed segment as it
worked to strengthen its color model product lineup. In addition, efforts were made
to expand sales under the Group’s own brand in the Japanese market by signing
agreements with mass retailers to carry Konica Minolta brand products.
However, profit margins deteriorated given a more-rapid-than expected shift to
color in the business technologies market, and in particular there were unit price
declines in the color LBP market.
Business Technologies
Sales Trend
(Billions of Yen)
0
200
400
600
800
1,000
20042003 2005 2009
(Plan)
Trend of
Business Technologies
Operating Income
(Billions of Yen)
0
30
60
90
120
20042003 2005 2009
(Plan)
Business Technologies
Business Technologies Key Strategies
1. Increase color MFP ratio
1) Strengthen R&D to expand product lineup with new models
2) Reinforce direct sales force in Japan, U.S., and Europe
2. Strengthen cost competitiveness
1) New plant for polymerized toner (Fall 2005):
Industry-leading production capacity with 8,000 tons/year
2) New plant in Wuxi, China (Dec. 2005):
Production capacity increase and procurement
reinforcement in China
3. Boost own-brand color LBP business
Net Sales ¥564.8 ¥860.0
Operating Income 55.8 107.0
Business Targets (Billions of Yen)
March 2009
(Projected)
March 2005
(Actual)
Yoshikatsu Ota
President, Konica Minolta Business Technologies, Inc.