Konica Minolta 2006 Annual Report Download - page 23

21
MEDICAL AND GRAPHIC
IMAGING
In the medical segment, which saw progress in the shift to digital and
networks, sales of digital related equipment and systems recorded growth,
which resulted in revenue growth over the previous fiscal year.
For the fiscal year ended March 2006, the medical field saw an acceler-
ating shift to digital and networks in on-site clinical and medical
applications, particularly among large hospitals both in Japan and abroad.
Given this trend, the Group worked to expand sales of digital related
equipment and systems such as the X-ray digital image reader series, the
recorded image output series and a network product series, which
resulted in strong sales in Japan and overseas. In addition, film sales are
shifting to dry film with digitization, which resulted in growing sales of
dry film compatible with digital equipment.
Furthermore, the Group emphasized sales of digital X-ray mammog-
raphy systems (PCM systems) in response to the growing need for mam-
mary cancer diagnosis as it worked to strengthen the digital image
diagnosis area. As the PCM system is the first in the world to utilize phase
contrast technology, and as the series consists of the industry’s state-of-
the-art digital imaging equipment such as a mammary X-ray mam-
mography system and a digital imaging reading and output system, it
is well regarded in the market and customer recognition of the product
is growing.
In the graphic imaging area, while sales centering on Asia increased,
sales of the main film product declined in Europe and the U.S., which
resulted in a slight decline in total unit sales amidst an accelerating shift
in the domestic and overseas markets toward digitization of printing
processes and film-less processing.
In order to shift the business structure in response to changes in
the market environment such as digitization and the shift to film-less pro-
cessing, the Group emphasized sales of digital color proofing systems,
special proofing paper and digital equipment such as digital color printing
equipment that is especially well suited for small lot printing. The Group
maintained the top domestic market share in high-end digital color proof-
ing systems, while favorable sales were recorded in Japan and overseas
for light digital printing equipment. In addition, the Group acquired
American Litho Inc., a major printing plate manufacturer in the U.S., in
October 2005, and worked to expand the plate business (printing plates)
centering on CTP, which is expected to become the pillar of a major new
business for the Group.
As a result, consolidated sales for the Medical and Graphic Imaging
business in the fiscal year ended March 2006 were ¥146.6 billion, and
operating income was ¥11.7 billion.
80
40
0
120
160
02 03 04 05 06
Net Sales
(Billions of Yen)
0
3
6
9
12
02 03 04 05 06
Operating Income
(Billions of Yen)
Kiyofumi Tanida
President
Konica Minolta Medical & Graphic, Inc.