Konica Minolta 2007 Annual Report Download

Download and view the complete annual report

Please find the complete 2007 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 64

  • 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
  • 61
  • 62
  • 63
  • 64

KONICA MINOLTA HOLDINGS, INC.
ANNUAL REPORT 2007

Table of contents

  • Page 1
    KONICA MINOLTA HOLDINGS, INC. A N N U A L RE P O RT 2 0 0 7

  • Page 2
    ... by the two companies, centering on a comprehensive imaging business-from input to output. Moreover, the Konica Minolta Group is pursuing growth by leveraging collective Group resources in the two major business domains of equipment and services, and components. The Group has annual sales of more...

  • Page 3
    Consolidated Financial Highlights Konica Minolta Holdings, Inc. and Consolidated Subsidiaries For the fiscal years ended March 31, 2007 and 2006 Thousands of U.S. dollars (Note 1) 2006 2007 Millions of yen 2007 For the Year: Net sales * Operating income Net income (loss) Capital expenditure R&D ...

  • Page 4
    ...and medium-speed segment of color MFPs and emphasized sales expansion. As a result, we were able to grow unit sales mainly in the European market. In the Optics business on the other hand, the sales increase was supported by contributions from highly functional TAC film centering on large LCD TV-use...

  • Page 5
    ..."- Basic Concept Further increase the added value in operations and maximize corporate value through the Group 's growth. Promote growth by leveraging collective Group resources • Build a new corporate value • Promote world-class corporate social responsibility (CSR) management Growth strategies...

  • Page 6
    ...) as a corporation in strengthening Group internal controls including compliance, and in seeking highly transparent management. Net Sales (Billions of Yen) Business Technologies Optics Medical and Graphic Imaging Holdings, Others Photo Imaging Other 1,200 900 600 300 0 2004 2005 2006 2007...

  • Page 7
    ... its lineup of high speed MFP bizhub PRO series products. Moreover, as office environs are rapidly being networked, we are emphasizing color MFP applications, and by seeking full-scale compatibility with open API and applications, are providing total network solutions. We are also leveraging Konica...

  • Page 8
    ... home appliances with hard disk drives. Responding to the growing demand, Konica Minolta is expanding manufacturing capacity through overseas production. In micro cameras units for camera-equipped mobile phones, we intend to establish cost competitiveness in order to cope with intensified price...

  • Page 9
    ... REGIUS110 X-ray digital image reader in response to customer needs. In graphic imaging, the Group acquired American Litho Inc., a major printing plate manufacturer in the U.S. in 2005. The Group is also seeking to establish the plate business (printing plate) centering on computer-to-plate (CTP...

  • Page 10
    ... of Yen) 2007 Plan Actual Plan 2008 Current 2009 Plan Performance Targets by Business Segment Fiscal Years Ended/Ending March 31 Business Technologies Optics Medical and Graphic Imaging Other Segment Total Photo Imaging Holdings, Others, Elimination and Corporate Group Total Net sales Operating...

  • Page 11
    ... professional document services as solutions businesses related to the Business Technologies business, LCD-use films with new functions and next generation memory devices in the Optics business, and the computer-aided diagnosis system business related to the Medical and Graphic Imaging business. In...

  • Page 12
    ... emphasis is on the enhanced solutions in the Business Technologies segment, development of films with new functions and next generation memory technologies in the Optics segment, and diagnostic imaging in the Medical and Graphic Imaging segment. Of these, the Group intends to synthesize materials...

  • Page 13
    ...toner • New fixation technology • Controller platforms • Medical practitioner systems Development at business companies Development at Technology Center Business domain expansion [Product commercialization in 3-5 years] • Ubiquitous imaging equipment • Next generation memory technologies...

  • Page 14
    ... an 8% level to net sales) Holdings, Others Other 3% 13% 17% 6% 8% 33% Optics Optics 10% 1% 35% Business Technologies Medical and Graphic Imaging Medical and Graphic Imaging 58% 16% Business Technologies Intellectual Property Strategy As the Konica Minolta Group places emphasis...

  • Page 15
    ... for the fiscal year ended March 2007 were ¥1,027.6 billion, while sales in our two main business lines of Business Technologies and Optics were ¥658.7 billion and ¥139.0 billion respectively. As the Photo Imaging business is in the process of being wound down, related sales recorded a decline of...

  • Page 16
    ... Optics, we are confident that high value-added film for LCDs and next generation pickup lenses for Blu-ray Disk and other DVD formats will promote sustainable future growth. Medical and Graphic Imaging is contributing to the development of the medical field through digital diagnosis technology...

  • Page 17
    ... Technologies Europe 19.9% 27.9% Japan 27.2% 25.0% North America Business Technologies Main Products: MFPs, LBPs, facsimile machines, consumables, software, system solutions, service 800 600 400 200 0 Net Sales (Billions of Yen) 625.8 564.8 606.7 658.7 2004 2005 2006 2007 Optics...

  • Page 18
    ... functions, high print picture quality that is based on Konica Minolta's proprietary polymerized toner with fine, uniformly sized particles, advanced imaging technology, the use of tandem engines for high speed output, and high cost performance. As a result, sales recorded strong growth centering on...

  • Page 19
    AKIO KITANI President Konica Minolta Business Technologies, Inc.

  • Page 20
    The color MFP bizhub C550 is suitable for the networked office environment The high-speed color MFP bizhubPRO C5500 expands the potential of the production printing business

  • Page 21
    ... high value-added products with integrated print, copy, scan and facsimile functions. In the fiscal year under review, a new magicolor5550 series LBP was announced and marketed. As a result of the above, consolidated net sales for the Business Technology business in the fiscal year ended March 2007...

  • Page 22
    ...21.0 6 0 2004 2005 2006 2007 0 2004 2005 2006 2007 Optics H contributed to the profit increase. igh sales growth was recorded in all business areas centering on TAC film and glass substrates for hard disks, and a recovery in the optical pickup lenses for memory devices also For the fiscal...

  • Page 23
    TAKASHI MATSUMARU President Konica Minolta Opto, Inc.

  • Page 24
    Konica Minolta's optical pickup lenses enjoy a commanding market share Glass hard disk substrates are light and very durable

  • Page 25
    ... lenses, which are expected to become the next driver of our optical pickup lens business, full-fledged production is underway for both Blu-ray Disk and HD DVD format end products. In addition, object lens shipments began and made a contribution to sales and earnings. In particular, Konica Minolta...

  • Page 26
    ...to expand sales of digital related equipment and systems such as the REGIUS series computed radiography systems and the DRYPRO series image output systems mainly to the worldwide hospital market in response to the trend toward digital and networked systems in the diagnostic and health care workplace...

  • Page 27
    KIYOFUMI TANIDA President Konica Minolta Medical & Graphic, Inc.

  • Page 28
    The REGIUS PureView Type-M x-ray manmography system incorporates cutting-edge phase contrast technology Digital Konsensus Premium is the ultimate digital color proofing system

  • Page 29
    ... called Konica Minolta Health Care Co., Ltd. was established in April 2007 in order to be able to provide a total solution from product planning to after service. Overseas, we strengthened our marketing coverage with the establishment of a new marketing company in Europe, and sales of both equipment...

  • Page 30
    .... For the fiscal year ended March 2007, the main color measurement business was supported by strong sales of spectrophotometers measuring physical objects designed for the automobile industry and light source measuring equipment for the FPD industry. In 3-D digitizers, we worked to expand marketing...

  • Page 31
    ... In the photo-related business (color film and photographic paper), the number of products and volume produced was wound down in stages and production was discontinued from the end of March 2007. In addition, marketing activities of related domestic and overseas sales companies or offices have been...

  • Page 32
    ... the Chairperson of the Board. The other six Board members also hold executive positions, including the President and CEO, and the executive officers in charge of corporate strategy, accounting and finance, technology strategy, compliance, and the Group's largest business company. Moreover, as all...

  • Page 33
    ...compensaiton policy, Konica Minolta discloses more information in its business reports than is required by Japan's Company Law regarding the structure of executive compensation and the total amount of each type of compensation. The Audit Committee reviews directors' and executive officers' decisions...

  • Page 34
    ... 2007 2011 VS. 2001 -7% 5. Contribution to Society Konica Minolta supported globally the Pink Ribbon Awareness Campaign to eliminate the tragedy of breast cancer by donating X-ray mammography imaging equipment that is essential for early detection of breast cancer to university hospitals in China...

  • Page 35
    ... Financial Review Intellectual Property Update Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statement of Changes in Net Assets Consolidated Statement of Shareholders' Equity Consolidated Statements of Cash Flows Notes to the Consolidated Financial Statements Report of...

  • Page 36
    ... display applications, optical pickup lenses and glass hard disk substrates for memory applications, micro cameras for camera-equipped mobile phones for imaging input/output applications. In the Medical and Graphic Imaging business, digital X-ray input/output equipment for medical imaging area and...

  • Page 37
    ...year at ¥10.5 billion mainly because of R&D expenditures for digital X-ray image input/output equipment. In addition, R&D expenditures for the Sensing segment were ¥1.1 billion. 90 9 Segment Information 60 6 Sales in the Business Technologies segment grew 9% year-on-year to ¥658.7 billion and...

  • Page 38
    ...for doubtful accounts declined by ¥4.3 billion, mainly as a result of the exit from the Photo Imaging business. In property, plant and equipment, the book value of mainly machinery and equipment, buildings and structures, and land declined by ¥34.9 billion as a result of asset sales related to the...

  • Page 39
    ...2007 (both in Kobe, Japan). In the memory-related area, the Group also invested in production capacity for next generation pickup lenses. In Medical and Graphic Imaging, a CTP plate production line for the newspaper industry that is owned American Litho Inc., a major U.S. printing plate manufacturer...

  • Page 40
    ... Imaging 2. R&D, Intellectual Property Organization, Collaboration and Alliances (1) R&D and Intellectual Property Organization The Group's R&D organization consists of an R&D organization within each business company for the development of new products, and the Konica Minolta Technology Center...

  • Page 41
    ...the number lawsuits by employees seeking compensation for their inventions. Know-how and trade secrets created in-house are an important part of the Group's technology assets, and unintended information disclosure could harm the Group's technological advantage and threaten the healthy development of...

  • Page 42
    ... 2006 that is published in the Japan Patent Office Annual Report 2007, Konica Minolta Holdings, Inc. ranked 32nd with 562 patents and Konica Minolta Business Technologies, Inc. ranked 84th with 241 patents. The Group's own 8% research indicates that it holds a total of 898 granted patents and...

  • Page 43
    ...image of the Konica Minolta brand after the Group's exit from the photographic film and camera businesses has become ever more important. The Group has created an organi- 2,400 200 1,600 100 800 zation to manage and strengthen the Konica Minolta brand. In addition, the Intellectual Property Center...

  • Page 44
    ... 93,172 165,091 (43,253) 4,610,224 Property, Plant and Equipment: Buildings and structures Machinery and equipment Tools and furniture Land Construction in progress Rental business-use assets Total Accumulated depreciation Net property, plant and equipment 163,895 215,227 143,672 33,065 12,406 73...

  • Page 45
    ...Common stock: Authorized-1,200,000,000 shares in 2007 and 2006 Issued-531,664,337 shares in 2007 and 2006 Capital surplus Retained earnings Less: Treasury stock, at cost; Common stock, 939,214 shares in 2007 and 825,124 shares in 2006 Unrealized gains on securities, net of taxes Unrealized losses on...

  • Page 46
    ... Foreign exchange gains, net Gain (loss) on sales and disposals of property, plant and equipment, net Write-down of investment securities Loss on disposal of inventories Loss on impairment of goodwill Gain on sales of securities, net Gain on sales of investments in affiliated companies, net Loss on...

  • Page 47
    Consolidated Statements of Changes in Net Assets Konica Minolta Holdings, Inc. and Consolidated Subsidiaries For the fiscal year ended March 31, 2007 Millions of yen Shares of issued common stock Unrealized Unrealized losses on Foreign gains on hedging currency Share securities, derivatives, ...

  • Page 48
    ... notes and accounts payable Increase (decrease) in accrued consumption tax payable Reversal of reserve for loss on impairment of leased assets Transfer of rental business-use assets Other Subtotal Interest and dividend income received Interest paid Payment for special outplacement program Income...

  • Page 49
    ... buildings acquired after April 1, 1998 is computed using the straight-line method. Depreciation for foreign subsidiaries is computed using the straight-line method. (g) Accounting Standard for Impairment of Fixed Assets On August 9, 2002, the Business Accounting Deliberation Council of Japan issued...

  • Page 50
    ... been reported if the previous standards had been applied consistently. (n) Accounting standard for retirement benefits in the United Kingdom Effective from the year ended March 31, 2006, consolidated subsidiaries Konica Minolta Business Solutions (UK) Ltd. and Konica Minolta Photo Imaging (UK) Ltd...

  • Page 51
    ...yen Thousands of U.S. dollars Unlisted stocks Foreign investment fund ¥378 ¥909 $3,202 $7,700 As of March 31, 2006 (1) Other Securities with Quoted Market Values Millions of yen Market value at the consolidated Unrealized balance gains sheet date (losses) Original purchase value Cash on hand...

  • Page 52
    ... Elimination of unrealized intercompany profits Reserve for discontinued operations Tax effects related to investments Write-down of assets Accrued bonuses Depreciation and amortization Enterprise taxes Allowance for doubtful accounts Provision for special outplacement program Other Gross deferred...

  • Page 53
    ... Companies have marked the assets down to the recoverable value. (3) Details of Impairment of fixed assets Amount Thousands of Millions of yen U.S. dollars March 31 March 31 2006 2007 2007 Buildings and structures Rental business-use assets Machinery and equipment Tools and furniture Leased asset...

  • Page 54
    ...Thousands of U.S. dollars March 31 2007 Thousands of U.S. dollars March 31 2007 Buildings and structures Machinery, equipment and other Tools and furniture Rental business-use assets Intangible fixed assets Less: Accumulated depreciation Loss on impairment of lease assets Net book value ¥ 8,841...

  • Page 55
    ... their credit ratings and other factors. Such credit-related risks are not anticipated to have a significant impact on the Companies results. Risk control system on derivative instruments In order to manage the market and credit risks, the Finance Division of the Company is responsible for setting...

  • Page 56
    ... forward foreign currency exchange rates prevailing as of March 31, 2007 and 2006, respectively. 2. Derivative instruments for which hedge accounting is applied are excluded from the above table. (2) Interest Rate-Related Derivatives Millions of yen March 31 2007 Contract value (notional principal...

  • Page 57
    ... Business Segment Information Business segment information of the Companies for the years ended March 31, 2007 and 2006 is presented as follows: Business segment Business Technologies: Optics: Photo Imaging: Medical and Graphic Imaging: Sensing: Other: Related business segment products Copy machines...

  • Page 58
    ... or areas are as follows: North America ...U.S.A. and Canada Europe...Germany, France and U.K. Asia and Other...Australia, China and Singapore 2. "Overseas sales" represents sales recognized outside of Japan by the Companies. 18. Net Income (loss) per share Calculations of net income per share for...

  • Page 59
    ... Konica Minolta Holdings, Inc. and consolidated subsidiaries as of March 31, 2007, and the related consolidated statements of income, changes in net assets and cash flows for the year then ended, expressed in Japanese yen. These consolidated financial statements are the responsibility of the Company...

  • Page 60
    ...Solutions (M) Sdn. Bhd. Konica Minolta Business Solutions (S) Pte. Ltd. Hungary Italy Lithuania Netherlands Norway Norway Poland Portugal Portugal Romania Russia Slovakia Slovenia Spain Sweden Sweden U.K. U.K. U.K. Ukraine Australia Australia China China China China China China (Hong Kong) Malaysia...

  • Page 61
    ... Inc. SALES COMPANIES Chuo Medical Konica Minolta Graphic Imaging Japan Co., Ltd. Konica Minolta Health Care Co., Ltd. Konica Minolta Health Care System Support Co., Ltd. Konica Minolta ID System Co., Ltd. Konica Minolta Medical & Graphic Technosupport Co., Ltd. ME Kikai Toho Chemical Laboratory Co...

  • Page 62
    ...Officers Parent company: 90 Group: 30,207 Investor Relations Contact Tomohisa Saito Senior Executive Officers Director, Konica Minolta Business Technologies, Inc. Shoei Yamana In charge of Corporate Strategy Chairman of Risk Management Committee Hiroshi Furukawa President, Konica Minolta Sensing...

  • Page 63
    Investor Information Konica Minolta Holdings, Inc. As of March 31, 2007 Common Stock Types of Shareholders 1,200,000,000 shares 531,664,337 shares Other Japanese Institutions 3.4% Individuals and Others 9.4% Non-Japanese Institutions 45.8% Securities Companies 2.2% Treasury Stock 0.2% Authorized: ...

  • Page 64
    KONICA MINOLTA HOLDINGS, INC. 1-6-1 Marunouchi, Chiyoda-ku, Tokyo 100- 0005, Japan Tel. (81) 3-6250-2100 Fax (81) 3-3218-1368 http://konicaminolta.com Printed with ink made from aroma-free soy bean oil. Printed in Japan