Konica Minolta 2005 Annual Report Download - page 26

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24
Medical and Graphic Imaging
REVIEW OF FISCAL 2004
In fiscal 2004, ended March 2005, the shift to on-site digital and networked
equipment at diagnostic and medical sites accelerated, particularly among large
hospitals in Japan and overseas. Because Konica Minolta’s medical imaging products
meet such digital and networking needs, the medical imaging business saw strong
sales growth centering on the digital X-ray film reader series and the recorded image
output series, in addition to the dry film used in this equipment.
In January 2005, Konica Minolta announced the PCM System, the world’s first phase
contrast-based digital X-ray mammography system, which is based on the Company’s
proprietary phase contrast mammography technology. The new system provides
ahigh level of performance and clear image quality and consists of four devices: a
Mermaid X-ray mammography system, an image reader, an image processing console,
and an image output system. The system is expected to play a key role in the early
detection of breast cancer, which is on the rise due to changes in diet and lifestyles.
Sales in the graphic imaging business were lower due to shrinking demand for the
segment’s mainline film products in Japan and overseas. As part of its efforts to
restructure the business, the Group focused on sales of digital equipment, specialty
color proofing paper and laser proofing systems.
Given the growing need for small lot production print runs, the Group is leveraging
its sophisticated color matching technologies to offer integrated low cost, high
productivity systems that can handle each proofing stage, from color proofing to
actual production of the document.
As a result of the above, consolidated sales for the Medical and Graphic Imaging
business were ¥129.9 billion, while operating income was ¥6.7 billion.
Medical and Graphic
Imaging Sales Trend
(Billions of Yen)
0
45
90
135
180
20042003 2005 2009
(Plan)
Trend of Medical
and Graphic Imaging
Operating Income
(Billions of Yen)
0
3
6
9
12
20042003 2005 2009
(Plan)
Net Sales ¥129.9 ¥180.0
Operating Income 6.7 12.0
Business Targets (Billions of Yen)
March 2009
(Projected)
March 2005
(Actual)
Medical and Graphic Imaging Key Strategies
1. Medical Imaging
1) Strenghten dry/wet film business
Maximize free cash flow
2) Expand hardware business
2. Graphic Imaging
1) Strengthen solutions business (eg. Color proofing)
2) Re-entry into plate business
Kiyofumi Tanida
President, Konica Minolta Medical & Graphic, Inc.