Konica Minolta 2012 Annual Report Download - page 11

Review of Operations (Former Optics Business)
Successful TAC films drive revenues
■
Display materials fi eld sees strong sales throughout the fi scal
year of thin plain TAC fi lms for LCD polarizers, one of our
mainstay products
While signs of adjustment have been strengthening in the liquid crystal display
business in general since the summer of 2011, new VA-TAC fi lms for increasing viewing
angle were introduced from the start of the year, and sales in Korea and Taiwan
performed well. Also, adoption of Konica Minoltas mainstay thin plain TAC fi lms
increased, and the sales volume for all TAC fi lms, including the thin plain type,
exceeded the previous fi scal year.
■
Sales decrease in the memory devices fi eld due to poor market
conditions and impact of the Thailand fl oods
The sales volume of glass substrates for HDDs remained on a par with the last fi scal
year, having been impacted by production adjustments by PC manufacturers in the fi rst
half of the fi scal year and by some HDD assembly manufacturers being damaged in the
Thailand fl oods in the second half. With market conditions not improving for pickup
lenses for Blu-ray Discs™ and DVDs, sales volumes of pickup lenses for optical disks were
down year on year.
■
Sales rise in the image input/output components fi eld due to
recovery in orders from the second half
Orders for lens units for digital cameras and video cameras, which had shown signs
of recovery, were suspended by some customers impacted by the Thailand fl oods, and
sales volumes increased only slightly year on year. Meanwhile, despite sluggish
performance in the fi rst half, sales volumes of optical units for mobile phones with
cameras rose above the previous fi scal year, consequent on an expansion in the models
using these products from the second half.
Summary of Industrial Business (Former Optics Business)
Sales for the fi scal year in the Optics Business totaled ¥124.3 billion (YoY -4.3%).
The impact of the decrease in profi ts due to reduced sales and lower prices for some
products was offset by increased sales of core products, cost reductions and expen-
diture cuts, enabling operating income to increase to ¥14.0 billion (YoY +9.6%) even
though net sales decreased.
The former Optics Business merged with the Sensing Business and the
new functional materials-related business, which includes the Organic
Light Emitting Diode (OLED) lighting business. As of FY March 2013, the
segment name has changed from the Optics Business to the Industrial
Business. This reorganization will combine advantageous technologies
and human resources within the Konica Minolta Group to strengthen
the competitiveness and profitability of the Optics Business, and
accelerate the establishment of new businesses.
Sales of TAC lm
(units)
150
100 106
128
100
50
0
FY2009 FY2010 FY2011
* Base index: FY2009 = 100
Sales of Glass substrates for HDDs
(units)
150
100
50
0
100
130 134
FY2009 FY2010 FY2011
* Base index: FY2009 = 100
Sales of optical units for mobile phones with cameras
(units)
150
100
76 36
24
38
16
100
50
0
FY2009 FY2010 FY2011
24 12 23
* Base index: FY2009 = 100
Lens unit
Camera module
10.5%
11.2%
9.8%
Net sales, operating income, and
operating income margin
Net sales
(Billions of yen) (Billions of yen)
Operating income Operating income margin
FY2009 FY2010 FY2011
200
175
150
125
100
50
25
75
0
40
35
30
25
20
15
10
5
0
136.7 129.8 124.3
14.0
12.8
14.3
10