Konica Minolta 2011 Annual Report Download - page 10

Special Feature Top Growth Strategy Enhancing Profitability
Increasing Deployment Capability Group Interconnecting Strategy
Becoming a “Global Company” Growth Strategy Q&A
By “expanding scale” we are referring to the scale of our profits.
One important step for achieving this is to increase the scale of
our sales. Another is to lift our profitability. We set specific numerical targets
for these after 3 years under “G PLAN 2013”-net sales of ¥1 trillion or more,
and an operating income ratio of 8% or more. Achieving these targets will
bring our operating income to at least ¥80.0 billion, double our present level.
There are two main reasons for seeking to increase the scale of our profits.
The first is that earning higher profits will enable us to take on greater risks.
We will be able to make investments for growth on a bigger scale, including
stepping up capital expenditure and M&A activity. These investments in
growth can create a positive cycle by expanding the scale of sales and scale
of profits in turn. The other reason is that increasing the scale of profits will
strengthen the Group, making it more resistant to sudden changes in the
business environment, such as a Lehman Shock-like downturn. Our
corporate activities are always affected by changes in various external
factors, but having a larger scale of profits will allow us to use such dramatic
changes in the business environment as opportunities for growth. I am
committed to transforming Konica Minolta into a strong corporate group, one
that is dedicated to expanding the scale of its profits, by executing G PLAN
2013.
Naturally, expanding the scale of our profits will also lead to growth in
shareholder returns in the form of dividends. I am fully aware that my
mission as president is to transform Konica Minolta into an attractive
corporate group from the perspective of our shareholders and investors.
Growth Strategy Q&A
KONICA MINOLTA HOLDINGS, INC. 9 ANNUAL REPORT 2011