Konica Minolta 2005 Annual Report Download - page 25

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23
REVIEW OF FISCAL 2004
In fiscal 2004, ended March 2005, the photo materials market saw significant
shrinkage in demand in its main color film segment owing to the diffusion of digital
cameras. The Group was able to limit the decline in sales volumes by strategically
strengthening sales to developing markets in Asia including China, India and Africa,
where the impact of digital camera diffusion has been less noticeable. In addition, as
demand for over-the-counter digital print services is expanding, good growth was
seen in unit sales of digital minilabs in Europe and Asia. On the other hand, the
photographic paper segment remained weak due to inventory corrections. In inkjet
media, sales volume growth was seen mainly in the Japanese market even though
price competition is intensifying.
In the camera business, the DYNAX 7D* high end digital single lens reflex camera
recorded sales growth on strong support from users, while unit prices as a whole
continued to decline centering on compact digital cameras. The DYNAX 7D* features
a proprietary anti-shake technology in the camera’s body and lens interchangability
with all DYNAX/Maxxum/αseries lenses. In terms of profitability, restructuring
contributed to reductions in fixed costs. These efforts could not however offset the
significant impact on overall profitability from a rapid deterioration in the film market
and unit price declines in digital cameras.
As a result, consolidated sales for the Photo Imaging business in fiscal year ended
March 2005 were ¥268.5 billion, while the operating loss was ¥8.7 billion.
* The DYNAX 7D is marketed as Maxxum 7D in North America and α-7 DIGITAL in Japan and China.
Photo Imaging
Sales Trend
(Billions of Yen)
0
90
180
270
360
20042003 2005 2009
(Plan)
Trend of Photo
Imaging Operating
Income (Loss)
(Billions of Yen)
–10
0
10
20
20042003 2005 2009
(Plan)
Photo Imaging
Net Sales ¥268.5 ¥160.0
Operating Income/Loss –8.7 2.0
Business Targets (Billions of Yen)
March 2009
(Projected)
March 2005
(Actual)
Photo Imaging Key Strategies
1. Scale back business size
1) Scale back film and photo paper businesses
2) Camera business:
✓ Scale back business size
✓ Concentrate on high-value-added products
✓ Break away from chronic deficits
2. Speedy restructuring
1) An extraordinary loss of 34 billion yen
in total for 4 years
(Fiscal years ended March2006–
March 2009)
2) Continue to execute restructuring
programs
Tsuyoshi Miyachi
President, Konica Minolta Photo Imaging, Inc.