Konica Minolta 2015 Annual Report Download - page 13

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Since being appointed as president and CEO in April 2014, I have been reorganizing the
Konica Minolta Philosophy, which is the foundation of all corporate activities and defines
our 6 values as shown in page 2. Moreover, in the new three-year Medium Term Business
Plan, “TRANSFORM 2016,” Konica Minolta pledges it will transform into a company that is
truly customer-centric and create new value by leveraging the strength of its connections
with customers around the world, thus further advancing the “genre-top” strategy.
In the first year of TRANSFORM 2016, which began in the fiscal year ending March
31, 2015, in addition to our core Business Technologies Business performing favorably, the
performance materials unit also did well following a recovery in TAC film sales and other
products. As a result, we experienced a smooth increase in existing business sales,
enabling us to achieve a consolidated revenue ¥1 trillion for the first time in seven years.
Moreover, there were significant increases in both operating profit, which was ¥65.7 billion,
an increase of 65.0% year on year* and profit for the year, which was ¥40.9 billion, an
increase of 44.1% year on year* resulting in a return on equity (ROE) of 8.7%*. Sales and
general administrative expenses includes advance expenses of approximately ¥8 billion for
various items such as those required for strengthening our service business, which is one
of the aims for achieving the targets of the Medium Term Business Plan. In fiscal 2014, we
also invested approximately ¥20 billion in M&A activities and other areas in order to
accelerate a shift in the focus of our business as part of our efforts towards achieving
sustainable growth.
As one initiative of this shift, we established a global framework for Marketing Print
Management (MPM) services, which are anticipated to be a driving force for growth in the
field of commercial and industrial printing. MPM services comprehensively manage the
printing needs of marketing divisions in major global enterprise customers, providing a
wide variety of services including cost-reduction solutions and business process
improvement. Significant growth in this area is anticipated in the future.
On another front, the Konica Minolta R&D framework has been revised in order to
strengthen our ability to create new value in the name of achieving future growth. A new
R&D center, Konica Minolta Hachioji SKT, commenced operations in April 2014. In addition
to integrating the development functions of the digital printing systems that drive the
growth of our core Business Technologies Business, SKT has begun activities in an effort
to become the hub of “new value creation” by promoting open innovation within Konica
Minolta and with external sources.
Additionally, the Business Innovation Centers (BICs) launched during the previous
fiscal year to develop new business in five major regions around the world—North
America, Europe, Asia Pacific, China and Japan—are now fully operational. Activities of the
production division include the establishment of a state-of-the-art production site in
Malaysia.
Achieving significant profit increase and over 8% ROE
while accelerating investment for future growth
* IFRS base
12
KONICA MINOLTA, INC. Annual Report 2015
Foundation for GrowthBusiness StrategiesGrowth StrategyCompany Overview and Characteristics Financial Report