Konica Minolta 2013 Annual Report Download

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Contents
1 At a Glance
3 Management Message
5 Business Technologies Business
9 Industrial Business
11 Healthcare Business
13 Reinforcing Our Global Management Base
14 CSR
17 Management’s Discussion and Analysis
25 Consolidated Financial Statements
Evolving for Growth
Annual Report 2013 Summary PDF

Table of contents

  • Page 1
    Evolving for Growth Annual Report 2013 Summary PDF Contents 1 At a Glance 3 Management Message 5 Business Technologies Business 9 Industrial Business 11 Healthcare Business 13 Reinforcing Our Global Management Base 14 CSR 17 Management's Discussion and Analysis 25 Consolidated Financial Statements

  • Page 2
    ...Konica Minolta Group's global business operations are centered on business technologies, where our products are typified by office MFPs (multi-functional peripherals); industrial business, where we provide measuring instruments used in quality management in the manufacturing process, including TAC...

  • Page 3
    ... 2nd in industry Supply of highly profitable, high-end lenses for digital SLR cameras based on technology accumulated over many years Industry standard Top global market share In the healthcare field, where digitization is gaining momentum, Konica Minolta MEDICAL & GRAPHIC, INC. is promoting...

  • Page 4
    Management Message We achieved increased revenue and operating income in a challenging business environment. We will steadily progress with transforming existing business operations and developing new business in a move toward continuous growth. Masatoshi Matsuzaki President and CEO

  • Page 5
    ... model in ways such as increasing sales of IT services packaged with MFPs. In the production print field, in Japan and Korea we acquired prominent service providers with strong track records in on-demand output services, and in Europe we acquired companies with solid performance in print management...

  • Page 6
    ... management of IT devices, we will expand the number of multifunctional machines installed globally and increase sales. 1. Optimized arrangement of output devices and output management service 2. Business with major global corporate customers • Accelerate business development in emerging markets...

  • Page 7
    ...) sold year on year. Although the market for A3 monochrome MFPs continues to mature and the number of units sold in major markets such as Europe decreased, total sales of A3 MFPs surpassed that of the previous fiscal year. In OPS (a service to provide an optimized print environment to the customer...

  • Page 8
    ...professional needs and wide-ranging in-line post processing options Market trends and position Market growth potential - Production print Net sales for production print and office (Billions of yen) Production print Of ce 600 Approx. ¥5tn Our focus fiel Slight decrease d 500 400 454.7 447...

  • Page 9
    ...-demand output services in Japan, FedEx Kinko's Japan Co., Ltd., in May 2012 and FedEx Kinko's Korea Ltd. in January 2013. In Europe, we acquired the major print management service company Charterhouse PM Limited (HO: U.K.) which, in addition to having extensive resources relating to the production...

  • Page 10
    ... cameras. These lenses take advantage of advanced, cutting-edge optic development, design, and production technologies. Our Strengths and Competitive Advantages 9 High technological strength and competitive power in the display materials field (VA-TAC film for increasing viewing angle and TAC film...

  • Page 11
    ... of major accounts Progress in efforts to strengthen the revenue structure Sales volumes exceeded the previous fiscal year, having acquired large orders for light-source color measurement equipment such as the CL-200A Chroma Meter and the CA-310 Color Analyzer used in quality management of...

  • Page 12
    ... and management of data. The Konica Minolta Group contributes to the digitalization of medical treatment with highresolution, low-exposure DR cassette digital X-ray photography equipment with excellent portability and operability and compact, lightweight and low power consumption CR systems for...

  • Page 13
    ... the sales of digital X-ray image diagnosis systems for medical institutions in Japan and overseas to facilitate the change from an analogue to a digital business structure. The cassette digital X-ray photography equipment AeroDR is one of our main products and is equipped with a high resolution...

  • Page 14
    ...customers. We achieved sales of ¥29.3 billion (YoY +44%) in FY March 2013. Expansion of Global Major Accounts (GMAs) by providing high-quality services worldwide As a result of promoting marketing to GMAs operating in Europe, the United States and other parts of the world through the window of OPS...

  • Page 15
    .... The guidance stipulates that Group companies are to respect international social codes such as the UN Global Compact, to which Konica Minolta, Inc. is a signatory, and the Universal Declaration of Human Rights, and act in accordance with such principles. Setting Key Objectives for CSR Promotion...

  • Page 16
    ... distribution, procurement, sales and service % 40 from fiscal 2005 levels by 2015 20 20 Reduction by % from fiscal 2005 levels by 2050 2050 (year) 80 0 2005 2015 Green Products Certification System Konica Minolta has introduced the Green Products Certification System, a unique system for...

  • Page 17
    ... the product life cycle, and investigated and implemented measures to deal with them. Konica Minolta initiated efforts to strengthen customer relationship management and developed concrete measures in each business. Number of serious product-related accidents1 0 Quality problem index2 (vs. fiscal...

  • Page 18
    .... However, sales of A3 MFPs overall increased from the previous fiscal year. In the production print field, sales volume of color production printing equipment increased in the United States and Japan amid a challenging market environment while monochrome production printing equipment rode the...

  • Page 19
    ...'s FedEx Kinko's Korea Ltd. in January 2013 to strengthen marketing, service and solution proposal capabilities in the corporate in-house printing market. In Europe, the Company acquired U.K.-based Charterhouse PM Limited, a major print management services company specializing in material and cost...

  • Page 20
    ...the Healthcare Business, the Company worked to expand sales of digital X-ray diagnostic systems to medical facilities in Japan and overseas. The AeroDR, a 3.0 FY2011 FY2012 cassette-style digital X-ray system featuring a proprietary high-image quality scintillator developed and manufactured by the...

  • Page 21
    ...investment securities decreased ¥20.7 billion to ¥120.5 billion. Notes and accounts receivable - trade increased ¥19.8 billion to ¥194.0 billion. Inventories increased ¥7.3 billion to ¥112.4 billion. Property, plant and equipment as of March 31, 2013 decreased ¥0.9 billion from a year earlier...

  • Page 22
    ... year ending March 31, 2014, the Company assumes it will achieve its performance forecasts and plans to pay an interim and a year-end ordinary cash dividend per share of ¥7.50 each. In August 2013, the Group will mark the tenth anniversary of the management integration between Konica and Minolta...

  • Page 23
    ...the impact of exchange rates by conducting hedging transactions centered on futures contracts for major currencies including the U.S. dollar and the euro. In addition, the impact of U.S. dollar-denominated procurement for the MFPs, printers and production printing equipment the Business Technologies...

  • Page 24
    (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 high-performance, reliable products and services. The Group could be responsible for compensation for damages that result ...

  • Page 25
    ... restore damaged facilities, or have other outcomes that could adversely affect the Group's results. (17) Impairment of Long-Lived Assets Effective the fiscal year ended March 31, 2006, the Group adopted accounting standards for impairment of long-lived assets including property, plant, equipment...

  • Page 26
    ...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 27
    ... 28): Common stock: Authorized-1,200,000,000 shares in 2013 and 2012 Issued-531,664,337 shares in 2013 and 2012...Capital surplus ...Retained earnings...Less: Treasury stock, at cost; Common stock, 1,346,048 shares in 2013 and 1,381,591 shares in 2012 ...Unrealized gains on securities, net of taxes...

  • Page 28
    ... OF COMPREHENSIVE INCOME Konica Minolta, Inc. and Consolidated Subsidiaries For the scal years ended March 31, 2013 and 2012 Consolidated Statements of Income Millions of yen 2013 2012 Thousands of U.S. dollars (Note 3) 2013 Net Sales ...Cost of Sales (Note 14)...Gross profit ...Selling, General...

  • Page 29
    ... yen 2013 2012 Income before minority interests ...Other comprehensive income Unrealized gains on securities, net of taxes...Unrealized gains (losses) on hedging derivatives, net of taxes ...Foreign currency translation adjustments ...Share of other comprehensive income of associates accounted for...

  • Page 30
    ... Konica Minolta, Inc. and Consolidated Subsidiaries For the scal years ended March 31, 2013 and 2012 Millions of yen Unrealized gains (losses) Unrealized on hedging gains on securities, net derivatives, net of taxes of taxes Foreign currency translation adjustments Shares of issued common stock...

  • Page 31
    ... disposals of property, plant and equipment ...Loss (Gain) on sales and valuation of investment securities ...Gain on sales of investments in capital...Gain on reversal of foreign currency translation adjustment ...Decrease in provision for bonuses ...Increase (Decrease) in accrued retirement bene...

  • Page 32
    ... subsidiaries are mainly stated at the lower of cost or market value or net realizable value, where cost is determined using the first-in, first-out method. (f) Property, Plant and Equipment Depreciation of property, plant and equipment (excluding lease assets) for the Company and domestic...

  • Page 33
    ...Changes in Accounting Policies Changes in Depreciation Method Beginning the fiscal year ended March 31, 2013 with the revision of the Corporation Tax Law, the Company and its domestic consolidated subsidiaries have changed their depreciation method for property, plant and equipment. Assets acquired...

  • Page 34
    ... shares of several companies during the year ended March 31, 2013. The assets and liabilities at the acquisition date and reconciliation from acquisition cost to net cash used in the acquisition are as follows. Assets and liabilities that are not material have been omitted. Charterhouse PM Limited...

  • Page 35
    ... using currency swaps and 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 monitoring...

  • Page 36
    ... dollars 2013 2012 2013 More than one year, within five years Within one year More than one More than one year, within five year, within five years years Within one year Within one year Cash on hand and in banks ...Notes and accounts receivable-trade ...Short-term investment securities and...

  • Page 37
    ... year, the Companies record an impairment loss, taking into consideration recoverability and other factors, assuming that the market value has "significantly declined." For securities without quoted market values, if the net assets per share have fallen by more than 50% from the acquisition cost...

  • Page 38
    ... ...¥70,000 - ¥110,000 - $744,285 The aggregate annual maturities of long-term lease obligations at March 31, 2013 are as follows: Amount Fiscal year Millions of yen Thousands of U.S. dollars The zero coupon convertible unsecured bonds due in 2016 are bonds with share subscription rights that...

  • Page 39
    ... European marketing services production company, through Konica Minolta Business Solutions Europe GmbH, a wholly owned subsidiary of the Company. The acquisition provides the Companies with know-how in marketing and consulting for document management, as well as Charterhouse's European sales network...

  • Page 40
    ...% stake of Instruments Systems Optische Messtechnik GmbH (Instrument Systems GmbH, IS), a major German lighting measurement equipment manufacturer, through Konica Minolta Optics, Inc. (KMOP), a wholly owned subsidiary of the Company. The acquisition provides KMOP an even broader product line up in...

  • Page 41
    ...supported by an appraisal report for land and buildings and structures, or a management estimate for rental business-use assets. 15. Research and Development Costs Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2013 and 2012 are...

  • Page 42
    ... 2013 2012 2013 Purchase cost: Buildings and structures ...Machinery and equipment . . Tools and furniture ...Less: Accumulated depreciation ...Loss on impairment of leased assets ...Net book value... ¥ 5,690 24 236 5,951 (5,341) (0) ¥ 609 Unrealized gains (losses) on securities Increase...

  • Page 43
    As Lessor Operating Leases The scheduled maturities of future rental incomes of operating noncancelable leases as of March 31, 2013 and 2012 are as follows: Millions of yen Thousands of U.S. dollars Net retirement benefit costs for the years ended March 31, 2013 and 2012 are as follows: Millions ...

  • Page 44
    .... Risk control system for derivative transactions In order to manage market and credit risks, the Finance Division of the Company is responsible for setting or managing the position limits and credit limits under the Company's internal policies for derivative instruments. Resources are assigned to...

  • Page 45
    ... of hedge accounting: Special treatment of interest rate swaps Millions of yen Thousands of U.S. dollars 2013 Type of derivatives transactions Contract value (notional principal amount) 2012 Contract value (notional principal amount) 2013 Contract value (notional principal amount) Major hedged...

  • Page 46
    ... as of March 31, 2013. Position and number of grantees Directors and Executive Officers: 26 Class and number of stock Common Stock: 194,500 Date of issue August 23, 2005 Condition of settlement of rights No provisions Period grantees provide service in return for stock options From August 23, 2005...

  • Page 47
    ... MFPs, printers, and equipment for production printing systems and graphic arts, and provides related solution services. The Industrial Business manufactures and sells electronic materials (TAC films, etc.), performance materials, optical products (pickup lenses, etc.), and measuring instruments...

  • Page 48
    ...depreciation method> Beginning the fiscal year ended March 31, 2013, with the revision of the Corporation Tax Law, the Company and its domestic consolidated subsidiaries depreciate property, plant and equipment acquired on or after April 1, 2012 under the revised Corporation Tax Law. Because of the...

  • Page 49
    ... statements 2013 Net sales External ...Intersegment ...Total ...Segment profit ...Segment assets ...Segment liabilities ...Other items Depreciation and amortization ...Amortization of goodwill ...Investments in affiliated companies ...Increases in property, plant and equipment and intangible...

  • Page 50
    ...21,460 ¥178,999 2013 Japan China Malaysia Other Total Property, plant and equipment ... $1,228,804 $205,061 $177,650 $301,329 $1,912,844 (3) Information by major customer Since there are no sales to customers that account for 10% or more of the net sales on the consolidated statements...

  • Page 51
    ...absorbed seven group companies, including Konica Minolta Business Technologies, Inc. on April 1, 2013. (1) Purpose of Business Combination This reorganization of the Group's management system will further speed up various initiatives to increase corporate value and is designed to achieve "innovative...

  • Page 52
    ... and sale of multi-functional peripherals (MFP), printers, and equipment for production printing systems and graphic arts, and providing related solution services ¥400 million ¥140,744 million ¥203,548 million Konica Minolta Advanced Layers, Inc. (Former trade name: Konica Minolta Opto, Inc...

  • Page 53
    ... Konica Minolta, Inc. (ii) Location of head office 2-7-2, Marunouchi, Chiyoda-ku, Tokyo (iii) Title and name of representative Masatoshi Matsuzaki, President and CEO (iv) Description of business • Development, manufacture, and sales of products including MFPs, printers, equipment for production...

  • Page 54
    Independent Auditor's Report 53

  • Page 55
    JP TOWER, 2-7-2 Marunouchi, Chiyoda-ku, Tokyo 100-7015, Japan Tel (81) 3-6250-2111 http://konicaminolta.com