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2
KONICA MINOLTA, INC. Annual Report 2014
Could you give us an overview of the fi scal 2013 results?
As economic conditions took a favorable turn, Konica
Minolta achieved an increase in sales, driven by our
mainstay Business Technologies Business. Other factors
contributing to this increase included the effects of foreign exchange
rates, refl ecting the persistently weak yen; sales growth of mainstay
products; improved product mix due to an increased share of high-
end models; and acquisitions. In terms of operating income, profi t in
the Industrial Business fell, due in part to decreased sales of TAC fi lms.
In the Business Technologies Business, however, profi t jumped signifi -
cantly on the back of a sales expansion that lifted gross profi t, the
effect of foreign exchange rates, and the full year impact of measures
to reduce production costs.
Net income grew, due in part to tax effects related to the revision of
deferred tax assets in line with reorganization of the Group’s adminis-
trative structure implemented in April 2013. This growth was achieved
despite the posting of impairment loss associated with the withdrawal
from the business of glass substrates for HDDs1 and the termination
of the Group’s production of fi lm for use in healthcare in order to cre-
ate a stronger corporate structure.
Furthermore, in January 2014, to increase corporate value, the
Company decided to repurchase up to 20 million of its own shares,
with an upper limit of ¥20.0 billion, and executed this purchase of
treasury stock between January 31 and April 14, 2014.
Increased sales in the Business Technologies Business drove an
overall sales increase.
Operating income in the Business Technologies Business doubled
compared with the previous fi scal year, more than compensating
for the drop in income in the Industrial Business. The Healthcare
Business also contributed to the growth in income.
Although we recorded costs associated with structural changes
aimed at reinforcing our business structure, net income increased
year on year due in part to tax effects related to the revision of
deferred tax assets.
Q1
A¥943.7billion
Net
sales (up 16%)
¥58.1billion
Operating
income (up 43%)
¥21.8billion
Net
income (up 44%)
1. HDD (Hard Disk Drive): A fi xed magnetic disk unit
Medium Term Business Strategy
The New Medium Term Business Plan TRANSFORM 2016
The reorganization of the Konica Minolta Group’s administrative structure in
April 2013 has paved the way to a greater combination of strengths throughout
a more united Group. In order to maximize results with this new structure, we
will fuse our products, technologies and core competencies across a wide range
of fi elds under the new Medium Term Management Plan TRANSFORM 2016,
launched in April 2014. We will work to thoroughly understand our customers’
various businesses, and provide them with higher added value. By thus contrib-
uting to innovation throughout society, the environment and our customer’s
value chains, we will generate sustainable growth.
Our Management Policy
Fiscal 2013 Results