Konica Minolta 2005 Annual Report Download - page 22

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20
REVIEW OF FISCAL 2004
In fiscal 2004, ended March 2005, the main optical pickup lens business saw
declining sales volumes on extended inventory adjustment for DVD players and other
consumer electronic equipment. In addition, the lens unit business also recorded
lower sales volumes on weaker demand for lens units used in digital cameras and
video cameras, owing to inventory adjustments in these final products.
On the other hand, overall TAC film sales for LCDs were strong, mainly supported
by continued diffusion of LCD panels for televisions. In particular, profit margins also
improved supported by an expanding proportion of high value-added LCD-use
TAC film.
In addition, the Group actively promoted sales of products with highly functional
features in the domestic market based on Konica Minolta’s proprietary technology in
micro lens units and microcamera modules for camera-equipped mobile phones,
including mega pixel class high image quality auto-focus and optical zoom lenses.
Moreover, in glass substrates for hard disk drives, new 1.8-inch products for hand-
held audio players were added to the lineup of existing 2.5-inch products, which
supported strong sales of small diameter products for mobile equipment applications.
As a result, consolidated fiscal year ended March 2005 sales for the Optics Business
were ¥91.7 billion, while operating income was ¥16.0 billion.
ANALYSIS OF OPTICS RELATED MARKETS IN FISCAL 2004
In optical pickup lenses, the competition to develop DVD standards is nearly over,
and the segment now faces a new age of price competition. Since diffusion ratios in
Japan for DVD players have exceeded 70%, unit prices are beginning to soften. On
Optics
Sales Trend
(Billions of Yen)
0
50
100
150
200
20042003 2005 2009
(Plan)
Trend of Optics
Operating Income
(Billions of Yen)
0
12
24
36
20042003 2005 2009
(Plan)
Optics
Net Sales ¥91.7 ¥170.0
Operating Income 16.0 31.0
Business Targets (Billions of Yen)
March 2009
(Projected)
March 2005
(Actual)
Optics Key Strategies
1. Optical pickup lens:
Ensure top market share in next generation DVDs with
industry-leading technologies.
2. Film for LCD:
Expand production capacity and business scale in response
to market growth.
3. Microcamera/micro lens units for mobile phones:
Capture major accounts and develop new business
opportunities.
4. DSC/VCR lens units:
Develop new customers
5. Glass substrates for hard disks:
Expand business focusing on small-diameter models.
Takashi Matsumaru
President, Konica Minolta Opto, Inc.