Konica Minolta 2013 Annual Report Download - page 18

Operating Environment
The eurozone economy recorded negative growth affected by Europe’s sovereign
debt problem, and emerging economies, which had been leading global economic
growth, were also sluggish. The U.S. economy is showing a recovery trend as
improvement in the employment environment and rising asset prices push up
consumption. Meanwhile, economic conditions in Japan remained challenging for the
manufacturing industry during the fi rst half of the fi scal year as compounding factors
such as the end of the cycle of disaster-related demand and the appreciation of the
yen coincided with each other to fl atten the economy. However, together with a
change of government in Japan and a steep weakening of the yen, positive
expectations about the economic outlook have been rising since the end of 2012.
Operating Results
Net Sales
In the fi scal year ended March 31, 2013, net sales rose ¥45.1 billion, or 5.9%, year on
year to ¥813 billion as a result of the strengthened sales of the core products in each of
the Company’s business segments and promotion of M&A deals, in addition to the
correction of the strong yen.
Operating Income
Despite the impact from delays to the planned cost reductions for some of the new
products in the Business Technologies Business and the deterioration of market
conditions in Europe, initiatives to increase sales and improve profi ts in the Industrial
Business and the Healthcare Business contributed to achieving a gross profi t margin
of 46.2%, which remained fl at year on year.
Selling, general and administrative (SG&A) expenses increased ¥19.9 billion year
on year, accompanying the rise in sales that resulted from the promotion of strategies
including M&As.
As a result of the above, operating income increased ¥0.3 billion, or 0.8%, year on
year to ¥40.6 billion.
Income before Income Taxes and Minority Interests
Income before income taxes and minority interests increased ¥1.0 billion, or 3.1%,
year on year to ¥33.8 billion as a result of ¥4.7 billion in loss on retirement of fi xed
assets and impairment losses relating to some production facilities and extraordinary
losses, which included restructuring expenses.
Net Income
Net income decreased ¥5.2 billion, or 25.9%, year on year to ¥15.1 billion because of
an increase in income taxes from the previous fi scal year.
Operating Results by Segment
Business Technologies Business
In the offi ce fi eld, sales of A3 color MFPs in the current fi scal year increased year on
year helped by new products. The market for A3 monochrome MFPs is becoming
increasingly mature, and sales declined in leading markets such as Europe. However,
sales of A3 MFPs overall increased from the previous fi scal year.
In the production print fi eld, 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 success of new products
Net sales
767.8 813.0
777.9
（Billions of yen）
1,000
200
400
600
800
0FY2011FY2010 FY2012
Operating income before amortization
of goodwill
(Billions of yen)
48.4 49.1
60
10
20
30
40
0
50
50.5
FY2011FY2010 FY2012
Operating income
40.0 40.3 40.6
0
（Billions of yen）
5050
10
20
30
40
FY2011FY2010 FY2012
Net income
25.8
20.4
30
5
10
15
20
0
25
15.1
（Billions of yen）
FY2011FY2010 FY2012
Management’s Discussion and Analysis
17