Konica Minolta 2008 Annual Report Download - page 24

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21
Optics
Sales increased on the strength of a recovery in demand for
display materials, notably TAC films used in large-screen LCD
televisions. High-value-added TAC films with viewing angle
expansion function were key sales drivers. We commercialized
several TAC films for VA mode to serve the growing market for
large-screen LCD televisions. In November 2007, we boosted
capacity by starting operations at our fifth TAC film plant,
enabling us to raise market share in retardation films for VA
mode LCD panels.
Core memory devices are optical pickup lenses, which
contributed significantly to earnings through favorable sales
for next-generation DVD formats. These lenses incorporate our
industry-leading optical and precision engineering, and other
advanced technologies, helping us to maintain our dominant
market position.
Despite customers’ inventory adjustments in the first half of
the term, sales of glass hard disk substrates were solid, reflect-
ing a demand recovery in the second half and high marks for
compatibility with perpendicular magnetic recording systems.
We expanded production capacity in December 2007 by starting
operations at a Malaysian factory.
In our digital camera lens unit business, we increased ship-
ments of high-zoom lenses, which harness our superior optical
technologies. Sales of components for camera-equipped mobile
phones rocketed because we were able to satisfy demand for
high-end lenses, contributing to our business expansion.
As a result of these factors, Optics business net sales rose
31.2%, to ¥182.3 billion, with operating income increasing
48.8%, year on year to ¥31.3 billion.
In order to further solidify our positions in the core TAC film
and pickup lens markets, we increased TAC film production
capacity in June 2008 by starting operations at our sixth plant.
At the same time, we are working to boost productivity in
other businesses.
Our new Osakasayama site in Osaka houses all western Japan
optical, mechanical design, and production engineers; they used
to work at sites around the region. We will use the synergies of
these people to cultivate operations by enhancing our develop-
ment and manufacturing technologies, creating high-precision
products, and improving productivity.
We will continue to comprehensively reinforce our Optics
business to become a dominant company.
Net Sales
(Billions of Yen)
85.8
91.7
110.4
139.0
182.3
Operating Income
(Billions of Yen)
15.3
16.0
17.6
21.0
31.3
04 05 06 07 08 04 05 06 07 08
Glass hard disk substratesTAC film production process Optical pickup lenses for
next-generation DVDs
Lens unit for camera-equipped
mobile phones