Konica Minolta 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 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 48

  • 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

KONICA MINOLTA HOLDINGS, INC.
Annual Report 2012 Summary PDF
At a Glance ................................ 1
Management Message ............... 3
Business Technologies Business .. 5
Industrial Business ...................... 9
Healthcare Business ................... 11
Reinforcement of
Our Global Management Base ... 13
Financial Review and Data .......... 15
Annual Report 2012
KONICA MINOLTA HOLDINGS, INC.
At a
G
G
Ma
a
n
n
Bu
Bu
Quality
Global
Growth
Contents

Table of contents

  • Page 1
    KONICA MINOLTA HOLDINGS, INC. Annual Report 2012 Quality Global Growth Contents Glance...1 At a G Management Message...3 Ma an Business Technologies Business .. 5 Bu Industrial Business ...9 I Healthcare Business ...11 Reinforcement of Our Global Management Base ...13 Financial Review and Data......

  • Page 2
    ... our products include pickup lenses for optical disks, and TAC film, a key material used in LCD panels, to healthcare, where we make digital X-ray diagnostic imaging systems. Business Technologies Business Industrial Business Total net sales for FY March 2012 767.8 billion Business Technologies...

  • Page 3
    ... the healthcare field, where digitization is gaining momentum, Konica Minolta MEDICAL & GRAPHIC, INC. is promoting manufacture, sales, maintenance and service businesses for diagnostic imaging systems, centered on high-resolution digital X-ray diagnostic image readers that take advantage of cutting...

  • Page 4
    Management Message Masatoshi Matsuzaki President and CEO 3

  • Page 5
    ...fed offset printers, to further expand our scale in the commercial printing area of the production print field. In addition, we acquired FedEx Kinko s Japan Co., Ltd. to strengthen the in-house printing field in Japan. We also acquired ten IT service providers in Europe and the United States as part...

  • Page 6
    ... Business Growth Strategy Office Advance our genre-top strategy to expand the scale of business in growth fields Priority measures Maintain the genre-top position by launching a new series of color MFPs Further strengthen OPS(Optimize Print Services), increase Global Major Accounts (GMA) sales...

  • Page 7
    ... the IT services business in which future growth is anticipated. We also launched the bizhub C754/C654 color models as high-end models of the series in January 2012, further reinforcing product competitiveness in the field. Sales of the A3 MFP for office use (units) Color B/ W 150 100 100 114 61...

  • Page 8
    ... Expand the product line-up from lightweight to heavy systems Strengthen our capabilities to meet customer needs by type of industry Achieve the top position in the color PV field Our competitive advantages World-leading in color production print field Spectacular image quality, high resolution...

  • Page 9
    ... color models of the new bizhub PRESS series, C8000/C7000/C6000, sales of which commenced from the fall of 2010, performed well in the in-house printing and digital commercial printing businesses, and the sales volume of color equipment greatly increased year on year in Japan, the U.S., Europe, and...

  • Page 10
    ...business development Priority measures TAC film: Secure growth using the advantage of thin plain TAC films Accelerate commercialization centered on functional materials including OLED-related products, barrier film and functional window film Barrier film: Preserves the quality of mobile devices...

  • Page 11
    ...the models using these products from the second half. Sales of optical units for mobile phones with cameras Lens unit Camera module 150 (units) 100 100 76 24 FY2009 50 36 24 12 FY2010 38 16 23 FY2011 0 * Base index: FY2009 = 100 Summary of Industrial Business (Former Optics Business) Sales...

  • Page 12
    ...Full-scale commercialization of proprietary Digital Radiography (DR) line-up and expansion of our genre-top position in small Computed Radi ography (CR) systems in the clinical market DR: X-ray diagnostic imaging systems featuring high sensitivity and high definition CR: Widely used X-ray diagnostic...

  • Page 13
    ... and expansion of service solution business In the first half of the fiscal year, in digital medical input equipment, we launched the cassette digital X-ray detector AeroDR and the desktop Computed Radiography (CR) REGIUS . In the second half, we expanded the line-up with products such as Digital...

  • Page 14
    ...: 4,000 companies) and sales of ¥20.3 billion (YoY +134%) in FY March 2012. Expansion of Global Major Accounts (GMA) by providing high-quality services worldwide As a result of promoting marketing to GMA operating in Europe, the U.S. and the rest of the world through the window of OPS, steady...

  • Page 15
    Priority measures Increasing the recognition of the Konica Minolta brand Promoting the communication message Giving Shape to Ideas This communication message clearly expresses our strong determination to fulfilling our customers needs through creative technological innovation. Under this message, ...

  • Page 16
    ..., 2012 increased year on year, reï¬,ecting stronger unit sales of color MFPs in all regions - Japan, the United States, Europe, and other regions including Asia - and level sales volume of monochrome MFPs. The Company enhanced its global sales system based on the concept of Optimized Print Services...

  • Page 17
    ...orders from certain customers that were affected by the ï¬,ooding in Thailand. Sales volume only increased slightly year on year as a result. Meanwhile, sales volume of optical units for cell phones with cameras increased year on year, with increased use of Konica Minolta optical units in the second...

  • Page 18
    ... and Â¥2.3 billion for payment for transfer of business, both of which were associated with the acquisition of companies in Europe and the United States to strengthen IT services and direct sales in the Business Technologies Business. As a result, free cash ï¬,ow, calculated as the sum of...

  • Page 19
    ... Year Ending March 31, 2012 and Planned Dividends for the Fiscal Year Ending March 31, 2013 Increasing market competition and the appreciation of the yen during the fiscal year ended March 31, 2012, along with production adjustments among customers and two major natural disasters that impacted...

  • Page 20
    ... The Group provides MFPs, production printing equipment, image input/output components, display materials, products and equipment for use in healthcare, and related services to customers worldwide. Economic conditions in national markets significantly affect sales and earnings in these businesses...

  • Page 21
    ... of customers and adversely affect the Group's results. (6) Quality Problems The Group has created a rigorous quality assurance system for Group companies and contract manufacturers in Japan and overseas, and provides customers with highperformance, reliable products and services. The Group could...

  • Page 22
    .... In the production print business, the Group responded to diversifying needs in the commercial printing market by concluding a global sales agreement in the commercial printing market in February 2012 with Japan-based Komori Corporation. In May 2012, the Group also acquired FedEx Kinko's Japan Co...

  • Page 23
    ...reduce net sales below initial plans, incur significant expenses to restore damaged facilities, or have other outcomes that could adversely affect the Group's results. The Group essentially resolved the component and raw material procurement problems caused by the Great East Japan Earthquake by the...

  • Page 24
    ...doubtful accounts ...Total current assets ...Property, Plant and Equipment (Note 17): Buildings and structures ...Machinery and equipment...Tools and furniture ...Land ...Lease assets...Construction in progress ...Rental business-use assets ...Total ...Accumulated depreciation ...Net property, plant...

  • Page 25
    ... 27): Common stock: Authorized-1,200,000,000 shares in 2012 and 2011 Issued-531,664,337 shares in 2012 and 2011...Capital surplus ...Retained earnings...Less: Treasury stock, at cost; Common stock, 1,381,591 shares in 2012 and 1,436,447 shares in 2011 ...Unrealized gains on securities, net of taxes...

  • Page 26
    ... and dividend income ...Interest expenses ...Foreign exchange loss, net ...Loss on sales and disposals of property, plant and equipment, net ...Write-down of investment securities...Gain on sales of investment securities, net ...Gain on sales of investments in affiliated companies, net ...Gain...

  • Page 27
    ... yen 2012 2011 Income before minority interests ...Other comprehensive income Unrealized gains (losses) on securities, net of taxes...Unrealized losses on hedging derivatives, net of taxes ...Foreign currency translation adjustments ...Share of other comprehensive income of associates accounted for...

  • Page 28
    CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS Konica Minolta Holdings, Inc. and Consolidated Subsidiaries For the fiscal years ended March 31, 2012 and 2011 Millions of yen Unrealized gains (losses) Unrealized on hedging gains on securities, net derivatives, net of taxes of taxes Foreign ...

  • Page 29
    CONSOLIDATED STATEMENTS OF CASH FLOWS Konica Minolta Holdings, Inc. and Consolidated Subsidiaries For the fiscal years ended March 31, 2012 and 2011 Millions of yen 2012 2011 Cash Flows from Operating Activities: Income before income taxes and minority interests ...Depreciation and amortization ......

  • Page 30
    ... Securities and Exchange Law of Japan. Accounting principles generally accepted in Japan allow consolidation of foreign subsidiaries based on their financial statements in conformity with International Financial Reporting Standards and accounting principles generally accepted in the United States...

  • Page 31
    ... foreign currency exchange contracts. The related hedged items are trade accounts receivable, trade accounts payable and long-term bank loans. The Companies' policy is to utilize the above hedging instruments in order to reduce exposure to the risks of interest rate and exchange rate ï¬,uctuations...

  • Page 32
    ... lock in interest expenses using interest-rate swaps. Investment securities comprise mainly stocks, and the market values of listed stocks are determined on a quarterly basis. The Companies try to reduce the credit risk of customers arising on notes and accounts receivable-trade through regular...

  • Page 33
    ... is based on the present value of future cash ï¬,ows discounted using the current borrowing rate for similar debt of a comparable maturity. Fair value of long-term loans with variable interest rates approximates book value as the Company's credit risk has not significantly changed since the date of...

  • Page 34
    ... for Which Loss on Impairment is Recognized The Companies have recognized loss on impairment for securities of ¥2,700 million ($32,851 thousand) and ¥680 million for the years ended March 31, 2012 and 2011, respectively. For securities with quoted market values, if the market value has declined...

  • Page 35
    ... issue price (Millions of yen) ...Â¥40,000 Ratio of granted rights (%)...100% Period share subscription rights can be exercised ...From December 21, 2006 to November 22, 2016 Long-term loans Millions of yen Interest rate Thousands of U.S. dollars 8. INCOME TAXES The income taxes of the Company and...

  • Page 36
    ... Income Tax Act, etc. for the Purpose of Creating Taxation System Responding to Changes in Economic and Social Structures" (Act No. 114 of 2011) and "Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake...

  • Page 37
    ...) (28,969) (45,383) (74,364) 2012 2011 2012 Manufacturing Machinery and equipment of equipment, Tools micro-camera units and furniture, for mobile phones Others Rental assets Rental business-use assets Idle assets Buildings and structures, Machinery and equipment, Others Others Investments and...

  • Page 38
    ... SUBSIDIARIES The pension liabilities adjustment of overseas subsidiaries results from the accounting treatment of retirement benefits that affect a certain consolidated subsidiary in the United States. Reversals of loss on impairment of leased assets for the years ended March 31, 2012 and 2011...

  • Page 39
    ... rates and foreign exchange rates, such derivative instruments are limited to hedging purposes only and the risks associated with these transactions are limited. All derivative contracts entered into by the Companies are with selected major financial institutions based upon their credit ratings...

  • Page 40
    ... of U.S. dollars 2012 Type of derivatives transactions Contract value (notional principal amount) 2011 Contract value (notional principal amount) 2012 Contract value (notional principal amount) Major hedged items Fair value Fair value Fair value Interest rate swaps: Pay fixed, receive...

  • Page 41
    ... 31, 2010 ...Granted ...Exercised ...Forfeited ...Stock options outstanding at March 31, 2011 ...Granted ...Exercised ...Forfeited ...Stock options outstanding at March 31, 2012 ... 681,500 188,000 120,500 2,500 746,500 239,500 68,000 2,000 916,000 Per unit information Exercised Exercise price of...

  • Page 42
    ... and the types of services of the Medical & Graphic Imaging Business, described in the above restructuring, have been changed from the production and sale of medical, printing, and other related products to the production and sale of consumables and equipment for healthcare systems. Accordingly, the...

  • Page 43
    ... Depreciation and amortization...¥ 21,377 Amortization of goodwill ...8,312 Investments in affiliated companies ...3 Increases in property, plant and equipment 17,781 and intangible fixed assets ...Optics Healthcare Subtotal Other (Note 1) Total Adjustments (Note 2) ¥124,313 755 125,068 14...

  • Page 44
    ... year ended March 31, 2012, net sales in the Business Technologies Business and the Healthcare Business are ¥544,506 million and ¥80,122 million, respectively. Net sales in the Business Technologies Business include ¥4,867 million of the former Graphic Imaging Business. Thousands of U.S. dollars...

  • Page 45
    ...¥20,078 Thousands of U.S. dollars ¥20,190 ¥190,701 2012 Japan China Malaysia Other Total Property, plant and equipment ... $1,481,409 $219,163 $216,170 $261,102 $2,177,868 (3) Information by major customer Since there are no sales to customer that account for 10% or more of the net...

  • Page 46
    ... reorganization of the Companies in April 2012, reportable segments will be revised to the Business Technologies Business, Industrial Business, and Healthcare Business. The revision in the business segments disclosure of the Companies will not affect total consolidated net sales, income, assets and...

  • Page 47
    Independent Auditor's Report 46

  • Page 48
    KONICA MINOLTA HOLDINGS, INC. JP TOWER, 2-7-2 Marunouchi, Chiyoda-ku, Tokyo 100-7015, Japan Tel (81) 3-6250-2111 http://konicaminolta.com